(Yicai Global) Aug. 9 -- Hisense's TV unit has logged a massive slowdown in net profit in the first half of this year as its acquisition of Japanese Toshiba's TV business dented the Chinese company's performance despite the rise of its exports as well as laser TVs.
Hisense Electric's net profit attributable to shareholders fell by 82 percent to CNY62.2 million (USD8.8 million), the Qingdao-based firm said in a statement yesterday. The company's revenue grew 8 percent to CNY15.1 billion (USD2.1 billion).
China has a weak market demand and foreign exchange rates are volatile, Hisense said, adding that it will invest more in research and development to cope with risks.
Large high-definition displays boosted Hisense's performance in the first half, with the sales of its laser TVs more than doubling from the previous year. In the second quarter, the revenue from its organic light-emitting diode TVs grew by nearly seven times.
Revenues from exported TVs increased by more than one-third during the six months. Sales of both Hisense and Toshiba-branded TVs climbed by 21 percent in Japan, exceeding those of its peers Sony and Panasonic, the firm added.
Last November, Hisense said it will acquire Toshiba Visual Solutions for CNY750 million to obtain Toshiba's global TV brand for 40 years.
Hisense Electric's [SHA: 600060] share price fell 3.4 percent to CNY7.9 (USD1.10) this morning.
Editor: Emmi Laine