Hisense Vision 2_1

[Mina]

DAVOSSwitzerland, Jan. 19, 2024 /PRNewswire/ -- Hisense Group Chairman Jia Shaoqian was recently invited to attend the 54th Annual Meeting of the World Economic Forum in Davos, Switzerland. This year's forum focused on the timely theme of "Rebuilding Trust in the Future" and how to inject confidence back into global recovery and renewal efforts. Mr. Jia represented Hisense Group at events including the "Recharging Growth in China" discussion and delivered a speech at the "China Night" gala. Through high-level discussions and engagements with international leaders from business, government and beyond, he shared Hisense's vision and strategies for continued innovation and success on the global stage.

"Globalization is an overarching trend. Despite the current challenges, we remain confident in the future," Mr. Jia explained at the "China Sustainable Growth Forum". More and more global companies are gravitating towards advanced technologies as they transform and upgrade high-end industries. Consequently, low-end products are being substituted by mid-to-high-end alternatives, a trend that aligns with Hisense's own trajectory.

The home appliance industry is highly competitive on a global scale. It relies heavily on an integrated system encompassing R&D, manufacturing, marketing, and supply chains. Major brands therefore have significant worldwide reach. To thrive internationally, Hisense localizes these functions through a unified production, marketing and R&D approach. This fosters collaboration across national borders.

Mr. Jia said: "Regardless of nationality, it's important that businesses respect local culture, social norms, consumer behaviors, and R&D practices wherever they operate. As such, Hisense continues to provide employment, fulfill economic duties and our social responsibilities. If it involves a local acquisition, the original brand must be respected and reshaped to enhance the longevity of the operation."

Currently, Hisense operates 34 industrial parks, 25 R&D centers, and 66 overseas companies worldwide. Its 2023 revenue is projected to surpass 200 billion yuan, with overseas markets accounting for over 42% of the group's total. Through regional hubs, Hisense aims to deeply understand local consumer needs and develop cutting-edge, high-quality products tailored for each market.

At the same time, Hisense's extensive worldwide network provides mutual support in supply chain management, inventory turnover, and delivery cycles. This significantly cuts logistics costs, resource consumption, and emissions.

But true localization takes time and patience, not just slogans. Chinese enterprises must embrace diverse cultures with tolerance and mutual understanding as they integrate globally. In this regard, open cooperation is essential in rebuilding trust in a changing competitive environment.

"Our confidence in the future of globalization remains steadfast. The world may have regional, linguistic, and cultural differences, but the people's aspirations for a better life, their pursuit of prosperity and their desire for equal exchange and friendship are the bond that unites us all," Mr. Jia said.

Balancing growth with innovation, inclusivity and sustainability remains a persistent challenge as we revitalize the global economy. Hisense is committed to engaging constructively in both international competition and cooperation, guided by an ESG mindset. Hisense will continuously strive to reduce our carbon footprint, utilize more recyclable materials in its home appliances, and be a force for positive change in the world.

About HisenseHisense is a leading global home appliance and consumer electronics brand. Its business covers multimedia products (with a focus on Smart TVs), home appliances, and IT intelligent information. Hisense currently operates in more than 160 countries.

Hisense Group is a Chinese multinational major appliance and electronics manufacturer headquartered in Qingdao, Shandong Province, China.[2] Televisions are the main products of Hisense, and it is the largest TV manufacturer in China by market share since 2004.[3] Hisense is also an OEM, so some of its products are sold to other companies and carry brand names not related to Hisense.[Bell 1][4]

Two major subsidiaries of Hisense Group are listed companies, Hisense Visual Technology (SSE: 600060)[5] and Hisense H.A. (SEHK: 921, SZSE: 000921).[6][7] Both had a state ownership of over 30% via Hisense holding company[8][9] before the end of 2020.[10]

Hisense Group has over 80,000 employees worldwide, as well as 14 industrial parks, some of which are located in Qingdao, Shunde, Huzhou, Czech Republic, South Africa and Mexico. There are also 18 R&D centers located in Qingdao, Shenzhen, the United States, Germany, Slovenia, Israel, and other countries.[11]

Qingdao No.2 Radio Factory, the predecessor of Hisense Group, was established in September 1969;[12] this is the year its existence was first officially recognized.[Bell 2] The small factory's first product was a radio sold under the brand name Red Lantern, but the company later gained the know-how to make TVs through a trial-production of black and white televisions ordered by the Shandong National Defense Office.[13] This involved the technical training of three employees at another Chinese factory, Tianjin 712, and resulted in the production of 82 televisions by 1971[13] and the development of transistor TVs by 1975.[Bell 2] Their first TV model, CJD18, was produced in 1978.[14]

Television production in China was limited until 1979, when a meeting of the Ministry of Electronics in Beijing concluded with calls for greater development of the civil-use electronics industry.[13] Qingdao No.2 Radio Factory was then quickly merged with other local electronics makers and manufactured televisions under the name Qingdao General Television Factory[Bell 2] in Shandong province.[Bell 2]

Color televisions were manufactured through the purchase of a production line from Matsushita,[15] the first of many such technology transfers from foreign firms Hisense has made in order to remain competitive. The companies it has bought from include Hitachi, Lucent, Matsushita, NEC, Sanyo, Toshiba, and Qualcomm.[Bell 3]

The Hisense Group emerged in 1994[13] from a tumult started in 1992 by then-president Zhou Houjian[16] or perhaps even by Li Dezhen, director of the Electronic Instrument Bureau of Qingdao.[Bell 2] The Hisense Electrical Appliance Share Holding Company (now, Hisense Electrical Co Ltd) was publicly listed on the Shanghai Stock Exchange in April 1997.[Bell 2] Increased competition and price wars in the Chinese electronics market in the 1990s were a boon to Hisense,[13] which gained ten failing enterprises by 1998.[Bell 2]

Eager to expand beyond consumer electronics, Hisense Group aimed to become a regional leader in household appliances, computers and communications as well.[13] This strategy prompted great outlays of capital on R&D and on the creation of industrial parks,[13] etc.

In November 2017, Hisense announced it would gain a 95% controlling stake in Toshiba Visual Solutions for US$113 million.[19] In 2018, Hisense became the majority shareholder in Slovenian appliance manufacturer Gorenje with 95.4% of shares.[20]

In May 2022, Hisense announced the launch of the company's first 4K Fire TV. The TV has a 50-inch 60 Hz display with a bezel-less design. It uses Hisense's ULED technology and comes with support for Dolby vision HDR with Fire TV built in.[22]

Hisense manufactures white goods, televisions, set-top boxes, digital TV broadcasting equipment, laptops, mobile phones, wireless modules, wireless PC cards and optical components for the telecommunications and data communications industries.[23]

In June 2017, Hisense was sued by Sharp under its new owner Foxconn, seeking to have the license agreement halted. Sharp accused Hisense of damaging its brand equity by utilizing its trademarks on products it deemed to be "shoddily manufactured", including those that it believed to have violated U.S. safety standards for electromagnetic radiation, and deceptive advertising of their quality. Hisense denied it engaged in these practices, and stated that it planned to defend itself in court and "will continue to manufacture and sell quality televisions under the Sharp licensed brands."[30][31]

Hisense and Hitachi established Hisense-Hitachi Air-conditioning System Co Ltd in 2003. It designs, manufactures and markets its products, which include commercial and household central air-conditioning systems, in China. They sell Hisense-Hitachi products in Japan. It operates a commercial air-con production facility in the Hisense Information Industrial Park.

Hisense Air Conditioning Co Ltd is a subsidiary set up in the Hisense Pingdu Home Appliance Industrial Park in Pingdu, China, in 1996 to produce air-conditioners using frequency conversion air-conditioner technology purchased from Sanyo.[13]

Hisense (Beijing) Electric Co Ltd took over a modern refrigerator factory near Beijing with the help of the local government after Whirlpool withdrew from the project in 1998.[13] Hisense (Beijing) Electric Co Ltd is now responsible for R&D, production and marketing of refrigerators.

Hisense-Whirlpool (Zhejiang) Electric Appliances Co Ltd is a joint venture between Hisense Kelon and Whirlpool formed in 2008 for the development and production of washing machines and refrigerators,[35] Hisense provides this joint venture with refrigerator know-how and Whirlpool, its washing machine manufacturing expertise.[36] The company operates a plant in Huzhou, Zhejiang province, which manufactures washing machines and large capacity refrigerators.[37]

Initially, few of the products it manufactured sold under the Hisense brand name, and they focused on OEM products instead.[Bell 4] As of 2009, the television plant has been shut down because of falling orders, and Hisense Hungary Kft operates with a staff of 13.[38]

In 2001, Hisense (Shandong) Information Technology Co Ltd created a subsidiary in Jinan, Shandong province, and this subsidiary handles infrastructure-use IT. It develops and markets security technology and intelligent traffic control products and their software.

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