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Haier sells mobile phone business

By Zhang Lu (China Daily)
Updated: 2006-04-25 09:06

Haier Electronics Group Co Ltd, the Hong Kong-listed arm of China's leading home appliance maker Haier Group, is to sell its unprofitable mobile phone business to its parent firm for about HK$420 million (US$54.2 million).

Facts and figures   The Hong Kong-listed Haier Electronics last week reported a turnover of HK$4.94 billion (US$637 million) for 2005, a year-on-year decrease of 16 per cent.  The loss was mainly due to a sharp decline in the mobile handset business. The turnover of the sector dropped by 48 per cent to HK$1.63 billion (US$210 million).   Its washing machine business registered turnover growth of about 20 per cent last year, to HK$3.31 billion (US$427 million).

The sale and purchase deal was signed on Thursday, the company said in a statement yesterday to Hong Kong Exchanges and Clearing Ltd.

The sale is part of the plan to transform Haier Electronics into "the listed flagship of Haier's white goods business," the company said.