Gree Electric Appliance minus profit by untold stories behind this multi.docVIP

 PAGE \* MERGEFORMAT 6 Gree Electric Appliance ‘minus profit by’ untold stories behind this multi Despite the impact of the financial crisis hit, Gree Electric Appliance in the first half of this year as investors continue to hand in a more satisfactory answer. Revenues fell 19.89% in the case, Gree Electric’s net profit had gained 29.18 percent increase in profits by realized minus the myth. For the main business decline in the interpretation of Gree Electric said that it was in response to financial crisis, reduce operating risk, take the initiative to adjust the production plans, increased the intensity of stock due to digestion. In particular, have fallen sharply in overseas exports, up 48.38 percent decline in the ratio, higher than the industry average. The Gree air-conditioning and total domestic sales from a year earlier fell 9.82%, underperforming the market of similar businesses. As for the rise in net profit, Gree Electric Appliance’s explanation given was that raw material costs over the same period a substantial decline in the proportion of high value added new products to increase sales. In this regard, the financial division Jiang Guobiao analysis pointed out that, in general, decline in business performance and profits by increasing the main reasons why there are 4 possibilities. The first is the company’s sales gross profit and considerable increase over the previous year, mainly referring to product price increase caused by lower purchasing costs. It is understood that since last November, the association of copper and air-conditioning manufacturing, steel, plastic particles and other raw materials have fallen sharply, with an average drop of 30% -45% or so. Starting from June this year, the above-mentioned raw material prices also rebounded. In this regard, Jiang Guobiao pointed out that fluctuations in raw material prices is reflected in the cost of home appliance machine, the existence of a certain lag, and the magnitude of the impact i