Hefei, Anhui – Appliance maker Meiling reported a 32% drop in net profit to RMB162m ($25m) on a 5% decrease in revenue to RMB8.4bn during the first nine months of 2015 compared with the same period in 2014.
A rise in the ratio of exports business is one of the reasons for the drop in profit margin, said the company on its investor relations site.
In July Meiling started a 160,000 unit/year fridge plant in Lahore, Pakistan, its joint venture with Pakistan’s home appliance distributor Ruba Group, the company told UTECH-polyurethane.com.
The project started in April 2014 with investments of $6.7m from Zhongshan Changhong Electric, a subsidiary of Meiling, and $8.3m by Ruba General Trading, a subsidiary of Ruba Group.
The project aims to localize Meiling’s fridge business in South Asia and establish its operational center in this area. Pakistan is a potentially large market and Chinese brands are popular among local consumers, says an earlier Meiling announcement .
With several years of successful operation of the joint ventures, the two parties are fully aware of the political and security risks in the area and are fully prepared with effective measures, says the announcement.
XE Currency Conversion: 18 November, 2015