Guangdong Kelon Electrical Holdings, China's third largest refrigerator maker, reported a net income of Yn184m in 2002 according to international accounting standards, after making losses in the previous two years. Under domestic accounting standards, Kelon reported that it had made a profit of Yn201m. However the company's auditor, Deloitte Huayong, had questioned the company's figures on inventories and affiliate transactions and, as a result, trading in its shares were suspended on the Shenzhen and Hong Kong stock exchanges.
Last year, the company agreed to write off Yn908m of debt owed by parent company Guangdong Kelon (Rongsheng) Group in exchange for three brand names and an unspecified piece of property. The two companies subsequently severed ties.
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