The agreement was signed last September between the two firms and is an important part of Qingdao Hisense's carefully engineered plan to overhaul Guangdong Kelon, China's once high-flying refrigerator maker.

According to the agreement, Qingdao Hisense acted as Guangdong Kelon's sales agent and promised to sell up to 1.4 billion yuan (US$172.84 million) Kelon products before the agreement expired March 31 this year.

Qingdao Hisense agreed to raise its agency sales from 1.4 billion yuan to no more than 2.8 billion yuan during the period of this extended contract, according to the statement.

Qingdao Hisense, one of the nation's most successful TV makers, has been seeking to obtain a controlling 26.43 percent stake in Kelon from former Kelon chairman Gu Chujun, who, along with several other executives, was detained last year amid allegations of embezzlement of Kelon's funds to buy other companies and providing fake financial reports.

According to an agreement signed last September with Gu's flagship enterprise, Guangdong Greencool Enterprise Development Co., Kelon's largest shareholder, Hisense offered to take the 26.43 percent stake in Kelon for 900 million yuan (US$111.11 million). On completion of the deal, Hisense would become the largest shareholder in Kelon.

Analysts said the extension of the sales agency agreement will give Qingdao Hisense more time to complete the transfer of the stake.

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