Guangdong Kelon Electrical Holdings Ltd. said in a Shenzhen Stock Exchange statement that it has a deal with an international home appliance company worth U.S. $75 million. The Chinese appliance company's clarification went even further, saying, according to the Shanghai Daily. "Management hopes to turn profitable by the end of 2006."
The unnamed partner in the agreement is said to be a United Kingdom-based firm and the two companies' agreement includes both refrigerators and air-conditioners.
This comes after a year of investigations of fraud against several top Kelon executives, the jailing of its chairman, and work stoppages resulting from a halt to supplier deliveries. Recently, a large percentage of Kelon shares were purchased by Qingdao Hisense Air-Conditioner Co. Ltd., which last week said it wanted to restructure Kelon. The Hisense proposal was essentially a swap – Hisense would give Kelon its air-conditioning operations, and Kelon would give Hisense it appliance and molding manufacturing operations. At the time of the announcement, Hisense had not yet discussed the proposal with Kelon.
Kelon's Shenzhen Stock Exchange statement said it intends to make an application to resume trading on the Hong Kong stock exchange, but it suspended its shares on the Shenzhen Stock Exchange on Friday.
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