Gadgets & Electronics

China's Midea Net Profit Down 14.78% In 2008

Chinese home appliances maker Midea has published its financial report for 2008, which states that its revenue increased by 28.77% year-on-year to CNY45.3 billion while its net profit decreased by 14.78% year-on-year to CNY1.03 billion.

Midea explains that the major reason for the net profit decline is because the company had non-recurrent income of CNY230 million in 2007, but there was no such income in 2008. In addition, the company's performance was affected by the fluctuation of the prices of raw materials and the fluctuation of exchange rates.

However, the major businesses of Midea maintained a stable growth over last year, especially the refrigerator and washing machine businesses, whose sales were over CNY10 billion for the first time. The refrigerator sector made revenue of CNY5.014 billion, a year-on-year increase of 36.25%; and the washing machine sector made revenue of CNY4.217 billion, a surge of 136.79%.

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