Haier Electronics on lookout for more logistics acquisitions

Haier Electronics plans new acquisitions to bolster its fast-growing logistics service business, after the company posted a 19 per cent year-on-year increase in first-half net profit.

The company, a subsidiary of home appliances giant Qingdao Haier, said the strategy would help meet demand on the mainland, where more enterprises are expected to outsource the storage, transport and distribution of their goods to professional third-party logistics companies.

"The group will reinforce investments and enhance its merger integration capability, aiming to absorb more third-party logistics teams into the group's platform," Haier Electronics chairman Zhou Yun Jie said in a results statement to the Hong Kong stock exchange yesterday.

Total capital expenditure of 367.53 million yuan (HK$462.05 million) in the first six months of the year was mainly used for developing its "integrated channel services" business, including the construction of logistics warehouse projects. The business helps fulfil the logistics requirements for a wide variety of household electrical appliances and consumer electronics goods.

In January, Haier Electronics made two acquisitions for an undisclosed sum to build up its logistics operations. It bought a 60 per cent stake in Shanghai Boyol New Brothers Supply Chain Management and wholly acquired Boyol Logistics Offshore.

The company entered into a strategic alliance with e-commerce powerhouse Alibaba in December with the goal of creating industry-leading service standards for the logistics, installation and servicing of household appliances across the mainland.