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The Sichuan Changhong Electric Co., Ltd., one of the largest electronic firms in China, saw its net profit plunge in the first half by 41.89 percent over the same period last year.

 

The Shanghai-listed company reported a net profit of 125.29 million yuan (US$15.7 million) in the first half.

 

Its half-year report published on Wednesday said the main operating turnover of 7.79 billion yuan was up 7.88 percent, but earnings per share were 0.066 yuan, down 34 percent.

 

Changhong attributed the profit decrease to its heavy investment in research and development, market expansion costs, brand promotion, as well as consolidation of its interests.

 

Color televisions and air conditioners were the firm's biggest selling items, but refrigerators and IT equipment were moving up in sales.

 

Due to debts incurred during its dealings with US distributor APEX, Changhong reported a heavy loss of 3.68 billion yuan in 2004, its first loss since it was listed in 1994.

 

It reported a net profit of 285 million yuan last year.

 

(Xinhua News Agency August 16, 2006)