(Yicai) Oct. 30 -- Midea Group, a major Chinese manufacturer of electrical appliances, reported slower earnings growth for the third quarter, after year-earlier government incentives for trading-in old consumer goods created a high base of comparison.

Net profit rose 9 percent to CNY11.9 billion (USD1.6 billion) in the three months ended Sept. 31, while revenue gained 10 percent to CNY111.9 billion (USD15.3 billion), the Foshan-based company said in a financial statement yesterday. That compared with second-quarter increases in profit and revenue of 11 percent and 15 percent, respectively.

China took steps in July last year to expand domestic demand. These included channeling CNY300 billion (USD42.2 billion) raised through ultra-long special treasury bonds toward large-scale equipment upgrades and consumer goods trade-ins. In less than five months, more than 29.4 million consumers took up the incentives to spend CNY202 billion on 45.9 million appliances.

The high base of comparison also weighed on the third-quarter earnings of other major appliance makers, including Hisense Home Appliances, where profit fell 5.4 percent despite a 1.2 percent increase in revenue.

After rising by as much as 2.3 percent in Shenzhen trading earlier today, Midea’s shares [SHE: 000333] closed 1.2 percent higher at CNY75.30 (USD10.59) apiece.

Despite the slower earnings growth, Midea outperformed its peers as the company stepped up its business-to-business push. B2B revenue surged 18 percent in the first nine months of the year, with sales up 21 percent, 25 percent, and 9 percent to clients in new energy and industrial technology, smart building tech, and robotics and automation.

For the nine-month period, net profit jumped 20 percent to CNY37.9 billion on a 14 percent increase in revenue to CNY363.1 billion, Midea also said. First-half profit and revenue climbed 25 percent and 16 percent.

In a separate statement released yesterday, Midea said Bo Lin will step down as vice president and take up other roles in the company. Bo had already left his position as president of the firm’s China business earlier this month, and was replaced by Wang Chunkai, general manager of marketing for China at Midea’s Little Swan brand.

Editors: Tang Shihua, Futura Costaglione