The number of electric appliances manufacturers in deficit increased by 17.2 percent year-on-year during the first four months of the year, the Ministry of Industry and Information Technology said on June 12.

"In 2011, China's home appliances industry performed fairly well in terms of output and exports despite the gloomy world economy, but the complex international economic situation is starting to hit the industry this year," the ministry said.

Gross sales of China's electric appliances industry stagnated in May due to sluggish demand, official statistics showed earlier.

The retail sales volume was at 49.9 billion yuan ($7.8 million) last month, up 0.5 percent compared to April, according to data released by the National Bureau of Statistics last week.

The government issued new rules on May 28 in a bid to boost the sales of home appliances.

Customers will get an up to 400 yuan subsidy to purchase energy-saving air conditioners or flat-panel televisions for a year starting on June 1.

More energy-saving appliances are likely to be added to the policy, but details have not been unveiled, the Beijing News reported.

gaoyuan@chinadaily.com.cn