(Yicai Global) March 31 -- Shares of Hisense Home Appliances Group fell after the Chinese white goods manufacturer posted a 38 percent decline in profit for last year, though revenue jumped.

Hisense [SHE: 000921] closed the day 2.2 percent lower at CNY11.12 (USD1.75). The benchmark Shenzhen Component Index retreated 1.2 percent.

Net profit was CNY970 million (USD152.9 million) in the year ended Dec. 31, according to the Qingdao-based company’s 2021 financial report published late yesterday. It blamed surging raw materials costs for the decline.

Revenue jumped 40 percent, benefitting from Hisense’s takeover last year of Japan’s Sanden as well as growth in the home appliances business despite an adverse operating environment.

Hisense expanded its business scope with Sanden, which makes parts for vehicle air conditioning systems, and said it will thereby “realize the leap from an automotive parts and components supplier to a system solutions provider."

Factoring out the purchase, Hisense’s net profit fell 29 percent with a 29 percent gain in revenue.

Central air-conditioning for business clients is the firm’s biggest source of profit. The main unit involved, Hisense Hitachi, had net profit of CNY2.4 billion (USD378.4 million), with revenue up 38 percent at CNY18.4 billion. The refrigerator and washing machine segments contributed 77 percent of Hisense's total revenue.

The company's business grew faster overseas than at home last year. Sales abroad rose 58 percent to CNY23.2 billion, with record-high exports of fridges, while domestic sales grew 29 percent to CNY37.6 billion.

Hisense did not provide any earnings forecast.

Editor: Tom Litting