Hisense Group plans to inject its white appliance business into Guangdong Kelon Electrical Holdings Co. The move is designed to save Kelon from delisting. The Shandong Province-based home appliance maker will incorporate its air-conditioner and refrigerator units into Kelon via purchasing stock placed with firm.

Guangdong Province-based Kelon will also have immediate access to Hisense's distribution channels of air-conditioners and refrigerators. Hisense Group in April paid 680 million yuan (US$87 million) for a 26.43-percent stake in troubled Kelon, becoming its largest shareholder. The Shandong maker said its group net profit in the first three quarters jumped 60 percent year on year to 88.5 million yuan.

Kelon is on the edge of delisting after a possible third consecutive year of losses in 2006. The Guangdong maker expects to lose 48 million yuan in the first three quarters of this year, which may lead to the third straight annual loss. It lost 3.69 billion yuan last year and 2.46 billion yuan in 2004 due to bad debts and amid allegations of financial wrongdoing by its former Chairman, Gu Chujun, whose trial is still in process in Guangdong.

The Shenzhen-listed group last month sold seven land plots in Foshan totaling 203,058 square meters through public tender to repay bank loans, and raise cash to maintain operations. So far, it has sold one plot covering 133,334 square meters for 127 million yuan.

Kelon's debts grew to 6.5 billion yuan by the end of June, from 5.9 billion yuan at the start of this year, according to its mid-year report.

Source:佚名