Chinese appliance maker Guangdong Kelon Electrical Holdings said it expects to post a profit for the full year 2002 after losing money in the previous 2 years.
"It is reasonable expectation that the company will record a profit for the 2002 financial year," the company said in a statement. If it had posted a third year of losses, trading in Kelon's shares in China would have been suspended. A further loss in the next 6 months would have likely seen it kicked off the Shenzhen stock exchange.
The company came under a media spotlight earlier this year when Chinese authorities launched a probe into the firm over connected transactions with its former major shareholder. Kelon said it made the profit forecast at the request of the Shenzhen stock exchange which required companies making losses for 2 consecutive years to keep investors updated each month between December and the day when they publishes annual results.
The company posted an unaudited profit for the first 9 months of this year of 134 million yuan (U.S. $16.19 million), compared with a loss of 95 million yuan ($11.5 million) the previous year, under Chinese accounting standards. It provided no results under international rules. "There will be no negative results in the fourth quarter of 2002", said Kelon. (Reuters)
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