Guangdong Kelon Electrical Holdings Co said it returned to the black last year as fourth-quarter profit offset losses in the previous nine months, which enabled it to stave off from being delisted.

The Guangdong Province-based refrigerator maker managed to turn around from a loss in 2006, it said. The company, however, did not provide detailed fiscal figures or earnings guidance for coming quarters. Domestic and overseas sales in the fourth quarter were in line with the company's expectations.

Kelon, partly owned by the Hisense Group, absorbed the latter's air-conditioner and refrigerator units, including distribution channels, after Hisense injected the profitable white appliance business into the firm in December. The Hisense Group is Kelon's largest shareholder with 26.43 percent in the company. Meanwhile, the sale of part of the assets also enabled the company to make a profit.

The Shenzhen-listed group in November announced it would sell seven land plots in Foshan totaling 203,058 square meters through a public tender to repay bank loans, and raise cash to maintain operations. By the end of last year, it has sold a 133,334-square-meter plot for 127 million yuan (US$16.3 million).

Kelon lost 3.69 billion yuan in 2005 and 2.46 billion yuan in 2004 due to bad debts and amid allegations of financial wrongdoing by its former chairman, Gu Chujun. Kelon's debts grew to 6.5 billion yuan by the end of June from 5.9 billion yuan at the start of last year.

Source:未知