Chinese appliance maker Hisense Kelon Electrical Holdings Co Ltd said it now expects its 2007 earnings to be 11.5 times higher than in 2006.

Hisense Kelon, formerly known as Guangdong Kelon Electrical Holdings Co Ltd, posted a net profit of 24.12 million yuan ($3.30 million) in 2006.

In an October 25 statement to the Hong Kong Stock Exchange, Hisense Kelon had estimated that its profit would climb 300 percent this year. It attributed the surge to improvements in management and the disposal of some idle assets.

Hisense Kelon's Hong Kong-listed H-shares have been suspended since June 16, 2005 after the China Securities and Regulatory Commission launched an investigation of alleged misappropriation of Hisense Kelon funds by Greencool Technology Holdings Ltd, whose owner, Gu Chujun, then controlled both companies.

The latest statement by Hisense Kelon mentioned only its increased profit outlook. In its October statement, it said it was unable as yet to say how much of its 2007 profit would be due to operations and how much to non-operating items.

Hisense Kelon is now 24.08 percent-owned by controlling shareholder Hisense Air-Conditioning Co Ltd, a subsidiary of China's Hisense group, which also owns Shanghai-listed Hisense Electric Co Ltd.

Hisense Kelon's Shenzhen-listed A shares last traded up 0.17 yuan or 2.04 percent at 8.49 yuan on Friday.