(Yicai Global) July 10 -- Shares in Whirlpool China surged as much as 5.4 percent today after the refrigerator and washing machine manufacturer said it is set to turn a profit in the first six months, its first since it was acquired by Chinese kitchen appliance giant Galanz Group two years ago.

Whirlpool China’s share price [SHA:600983] closed up 1.8 percent at CNY7.91 (USD1.09) today. Earlier in the day it hit CNY8.19.

Whirlpool China expects to rake in net profit of between CNY30 million (USD4.2 million) and CNY45 million in the six months ended June 30, the Hefei, eastern Anhui province-based firm said on July 7. This is a big turnaround from the net losses of CNY11.3 million it reported the same period last year.

Whirlpool China had been optimizing its business model, setting up new sales channels and improving its gross margin by enhancing research and development and making its products more competitive, it said. It has also lowered its costs by optimizing procurement and management procedures.

It has also has been teaming up with home furnishing firms, such as Oppein Home Group, Boloni and Qu Mei Home Furnishings Group, this year to explore an integrated sales model, Yicai Global has learned.

Galanz bought a majority stake in Whirlpool China from the US’ Whirlpool Corp. in May 2021. Since then it has hiked its stake several times and now holds 57.3 percent equity, compared with Michigan-based Whirlpool’s 19.9 percent.

China's white goods market is bouncing back this year. Sales of refrigerators climbed 3.4 percent in the first five months from a year ago to 33.5 million units, while that of washing machines soared 12.4 percent to 30.5 million units, according to data from industry researcher ChinaIOL.

Editors: Lv Yining, Kim Taylor