Gadgets & Electronics

Electronics Shaky In China: Konka Net Profit Down 75%

Konka Group, China's first Sino-foreign joint consumer electronics enterprise, has published its financial report for the third quarter of 2009.

According to the report, the group make total revenue of CNY3.854 billion from July to September 2009, an increase of 13.15% compared with the same period of last year. However, its net profit attributed to shareholders of its listed company was CNY26.34 million, a sharp decline of 75.47% year-over-year.

Meanwhile, Konka reported total revenue of CNY9.026 billion during the first three quarters of 2009, a year-on-year decrease of 0.01%; and its net profit during the same period was CNY106.6 million, a year-on-year decrease of 43.25%.

Konka said the major reason for its net profit decline during the first three quarter of 2009 was because the continuous increase of the prices of panels. In addition, the television sales in 2008 were greatly promoted by the Beijing Olympic Games. Therefore, compared with the relatively high net profit level in the third quarter of 2008, that of the same period of 2009 showed a significant decline.

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