|State-owned enterprise with publicly traded subsidiaries|
|Traded as||SEHK: 921 SSE: 600060|
|Predecessor||Qingdao No. 2 Radio Factory|
|Headquarters||Qingdao, Shandong, China|
|Products||White goods, televisions, mobile phones and cash registers|
|Services||Real estate, property management, mould production and design, pattern making and IT services|
|Revenue||US$15.04 billion (2013)|
Hisense Co., Ltd. (Chinese: 海信集团) is a Chinese multinational white goods and electronics manufacturer headquartered in Qingdao, Shandong province, China. It is a state-owned enterprise[Bell 1] with publicly traded subsidiaries.
Hisense has two publicly traded companies, Hisense Electric Co Ltd, which is listed on the Shanghai Stock Exchange (SSE: 600060) and Hisense Kelon Electrical Holdings Co Ltd, which is listed on the Shenzhen (SZSE: 000921) and Hong Kong (SEHK: 921) stock exchanges and a number of other subsidiaries.
Hisense has 13 manufacturing facilities in China (located in the provinces/cities of: Guangdong, Guizhou, Huzhou, Jiangsu, Liaoning, Linyi, Shandong, Sichuan, Yangzhou, Yingkou, Xinjiang, Zibo and the municipality of Beijing) and several outside of China, namely in Hungary, South Africa, Egypt, Algeria, France and Mexico.
Hisense retails products under several brand names. These include Combine, Kelon and Ronshen, etc.. Hisense is also an OEM, so some of the products it makes are sold to other manufacturers and carry a brand name not related to Hisense.[Bell 2] It does sell televisions under its own name, however.
Hisense grew out of Qingdao No.2 Radio Factory, setup in September or December of 1969 by Qingdao governmental authorities.[Bell 1] This was the year its existence was first officially recognized.[Bell 3] This small factory's first product was a radio sold under the brand name Red Lantern, but the company later acquired the know-how to make TVs through a trial-production of black and white televisions ordered by the Shangdong National Defense Office. This involved technical training of three employees at another Chinese factory, Tianjin 712, and resulted in the production of 82 televisions by 1971 and the development of transistor TVs by 1975.[Bell 3]
Television production in China was limited until 1979 when a Beijing meeting of the Ministry of Electronics called for greater development of the civil-use electronics industry. Qingdao No.2 Radio Factory was then quickly merged with other local electronics makers and began to manufacture televisions under the name Qingdao General Television Factory[Bell 3] in Shandong province.[Bell 3]
Color televisions were manufactured through the purchase of a production line from Matsushita,[Bell 3] 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 4]
The Hisense Group emerged in 1994 from a tumult started in 1992 by then-president Zhou Houjian or perhaps even by Li Dezhen, director of the Electronic Instrument Bureau of Qingdao.[Bell 3] The Hisense Electrical Appliance Share Holding Company (now, Hisense Electrical Co Ltd) was publicly listed on the Shanghai Stock Exchange in April 1997.[Bell 3] Increased competition and price wars in the Chinese electronics market in the 1990s were a boon to Hisense, which acquired ten failing enterprises by 1998.[Bell 3]
Eager to expand beyond consumer electronics, Hisense Group aimed to also become a regional leader in household appliances, computers and communications. This strategy that prompted great outlays of capital on R&D and on the creation of industrial parks, etc.
In July 2015, Hisense bought Sharp's Mexico TV factory for $23.7 million with rights to use the Sharp brand name and all its channel resources in North and South America - meaning Hisense completely took over Sharp's TV business in those regions. The deal was expected to add US$2 billion to Hisense's annual revenue.
Products and services
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.
It also provides a variety of services, including property management, information technology services, product design, mold design, pattern making as well as mold processing and manufacturing.
Hisense sells under multiple brand names.
A brand of commercial air-conditioners designed and manufactured by a joint venture of Hisense and Hitachi.
High quality, middle-end air conditioners and refrigerators retail under this brand name.
A home appliance brand, from the eponymous English word.
- Hisense-Hitachi Air-conditioning System Co Ltd
Established in 2003 as a joint venture between Hitachi and Hisense, Hisense-Hitachi Air-conditioning System Co Ltd is an air-conditioner company that sells under the brand names “Hisense-Hitachi” and “Hitachi”. It designs, manufactures and markets its products, which include commercial and household central air-conditioning systems, in China. Hisense-Hitachi products are also sold in Japan. It operates a commercial air-con production facility in the Hisense Information Industrial Park.
- Hisense Air Conditioning Co Ltd
This subsidiary was 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.
- Hisense Australia Pty Ltd
Headquartered in Qingdao, China, Hisense's Australian subsidiary helps distribute Hisense products in this country.
- Hisense (Beijing) Electric Co Ltd
Formed from the assets of a failing joint venture between Whirlpool and Beijing Snow Flake, Hisense was able to take over a modern refrigerator factory near Beijing that with the help of local government after Whirlpool had withdrawn from the project in 1998. Hisense (Beijing) Electric Co Ltd is now responsible for R&D, production and marketing of refrigerators.
- Hisense-Whirlpool (Zhejiang) Electric Appliances Co Ltd
A joint venture between Hisense Kelon and Whirlpool formed in 2008 for the development and production of washing machines and refrigerators, Hisense provides this joint venture with refrigerator know-how and Whirlpool, its washing machine manufacturing expertise. The company operates a plant in Huzhou, Zhejiang province, which manufactures washing machines and large capacity refrigerators.
- Hisense Export & Import Co Ltd
- Hisense Hungary Kft
Initially, few of the products it manufactured were sold under the Hisense brand name, and production focus was on OEM products,[Bell 1] instead. As of 2009, the television plant has been shut down due to falling orders, and Hisense Hungary Kft operates with a staff of 13.
- Hisense (Shandong) Information Technology Co Ltd
Created in 2001 and located in Jinan, Shangdong province, this subsidiary is responsible for infrastructure-use IT. It develops and markets security technology and intelligent traffic control products and their software.
- Hisense Kelon Electrical Holdings Ltd
Listed on two stock exchanges, Hisense Kelon is a large Hisense subsidiary.
- Hisense Intelligent Commercial Equipment Co Ltd
Founded in 1989, this subsidiary manufactures, designs, markets and services POS terminal, electronic cash registers and other specialized peripheral equipment for retailing, tax monitoring and finance. It is also responsible for R&D and manufactures at the Hisense Yellow Island Information Product Manufacturing Park.
- Hisense Mobile Communications Technology Co Ltd
Created in 2005, Hisense Mobile Communications Technology Co Ltd has its roots in the Hisense Mobile Communications Research Institute, an R&D team created in 2000. Holding a total of 233 patents, 64 inventions and 116 software copyrights, its products include mobile handsets, Linux OS smart phones, wireless modules, PC cards and industry customized terminals.
- Hisense Optics Co Ltd
Established in 1996, Hisense Optics has its roots in Qingdao Camera Co, a former subsidiary of Qingdao Electric Instrument Bureau, which in 1995 was facing bankruptcy when the government of Qingdao erased its debts and gave its assets to the Hisense Group who renamed it Hisense Optics. This subsidiary operates a remote control factory, a degaussing coil factory and an accessory parts factory. Products manufactured include remote controls, degaussing coils and injection molded parts. It may also produce, or did produce, optical instruments, cameras and telephones. It operates an injection molding workshop in Nancun town, Qingdao.
- Hisense Optoelectronics Technology Co Ltd
Created as a joint venture between Hisense, Ligent Photonics Inc, et al. in 2003 this subsidiary develops fiber optic products. Its R&D facilities are located in Chicago and Qingdao, and it has a production base in latter location. It is also responsible for marketing Ligent Photonics Inc products in Asia.
- Hisense South Africa Development Enterprise Pty Ltd
Hisense's first overseas subsidiary, this failed joint venture with South African bank NED[Bell 1] had a factory in South Africa that manufactured televisions and home-theater equipment.[Bell 1] It may still be responsible for R&D[Bell 6] and distribution to local retail outlets.[Bell 1]
- Hisense USA Co
A Georgia-based subsidiary responsible for some activities in the US, Hisense USA may distribute products to retailers or establish an R&D center. Founded in 2000[Bell 1] or 2001, it was initially headquartered in Los Angeles.[Bell 1] It may initially have included an R&D facility.[Bell 4] As of 2009, it has locations in Gwinnett, Suwanee, and unincorporated Gwinnett County, Georgia.
- Ligent Photonics Inc
Established in 2002 as a joint venture with Hisense, this subsidiary designs, develops and fabricates optical components for the telecommunications and data communications industries. Products are designed at its St Charles, Illinois headquarters and manufactured in China. This joint venture sells in North America, Europe and the Middle East through a network of sales representatives and in Asia through Hisense Optoelectronics.
- Qingdao Hisense Communications Co Ltd
This subsidiary manufactures mobile phones and operates an R&D facility. Established in 2001, it has a technical cooperation effort with Qualcomm and operates a mobile phone production base in a Hisense IT Industrial Park 90 minutes from Qingdao. One of its products, the Hisense C108, is the first mobile phone to use Qualcomm's biomimetic screen technology, Mirasol, which allows it to be easily read in direct sunlight.
- Qingdao Hisense Network Technology Co Ltd
Established in 2004, this subsidiary grew out of an internal Hisense department, the Information Technology Center and provides IT consultancy services.
- Qingdao Hisense Property Management Co Ltd
Hisense provides property management services, as well as product design, mold design, pattern making and mold processing and manufacturing through this subsidiary.
- Qingdao Hisense Real Estate Co Ltd
Created in 1995, this subsidiary has more than 40 completed developments in Shandong province, including residential buildings, apartments, villas, townhouses, office buildings and large industrial parks.
- Qingdao Hisense TransTech Co Ltd
Founded in October 1998, this subsidiary manufactures and markets electronics for urban traffic, public transport and logistics. Its products include traffic light control systems, traffic signal controllers, comprehensive public security and traffic information platforms, digital traffic violation video processing systems, public transport dispatch systems, the Hisense intelligent vehicular terminal, the Hisense mobile audio-visual intelligent vehicular terminal and electronic stop signs. Its products are marketed under the HiCon, HiECS, HiATMP, and HiDVS brand names.
- Unnamed Italian office
As of 2005 an unnamed Italian office may manage own-brand (as opposed to OEM) sales with a primarily ethnic Chinese staff of near 20.[Bell 5]
- Wuhu Ecan Motors Co Ltd
A joint venture between Guangdong Kelon (Rongsheng) Co Ltd, Xiwenjin Co Ltd and Luminous Industrial Ltd, this company produces electric motors for the information industry and for use in office automation. It is located in the Wuhu National High-tech and Industry Development Zone.
Hisense owns at least 12 manufacturing parks, worldwide, and operates a number of production bases.
- Hisense Guangdong Multimedia Industrial Base
- Hisense Industrial Park in South Africa
- Hisense Information Industrial Park
Created in 2001 and located in Qingdao, Shandong, this industrial park is situated on 1,200 mu (80 hectares) of land. Hisense-Hitachi operates a commercial air-conditioning manufacturing facility in the park and from 2007 a LCD TV module production line also calls the park home.
- Hisense Pingdu Home Appliance Industrial Park
- Hisense Yellow Island Information Product Manufacturing Park
Encompassing over 200 acres (0.81 km2), Hisense Yellow Island Information Product Manufacturing Park is one of the twelve industrial parks owned by Hisense as of 2009.
- Huzhou production base
A Hisense inverter-type/variable-frequency air-conditioner production base is located in Huzhou, Zhejiang, and was set up on May 8, 2005. A joint venture between Hisense Air Conditioner Co Ltd and Zhejiang Xianke Air Conditioner Co, it is operated by subsidiary Hisense (Zhejiang) Air Conditioner Co Ltd and comprises a 60,000 square meter factory and over 200 mu of land.
- Hisense Whirlpool (Huzhou) Household Appliances Industrial Park
A production base that manufactures washing machines and refrigerators for a joint venture with Whirlpool is situated at this Huzhou park. It comprises an 80,000 square meter factory on 20 hectares of land.
- Nanjing Refrigerator Industrial Park
Located in the Nanjing Xingang Economic and Technological Development Zone of Nanjing, Jiangsu, a refrigerator production base is situated in this industrial park. The site's factory is 52,000 square meters in size.
- Sichuan production base
In July 2008 Hisense entered into an agreement with Melbourne & Olympic Parks allowing them six-year naming rights to Hisense Arena, a Melbourne venue for spectator sports such as basketball, netball, dance sports, cycling, gymnastics and tennis. It is the first stadium in the world to be named after a Chinese company.
In China Hisense has begun a relationship with the Beijing University of Aeronautics and Astronautics to set up an engineering postgraduate program approved by the Ministry of Education and a collaboration with Peking University to set up an MBA remote education program.
- Investor relations Hisense Official Site
- E-Trade stock quote and company profile for Hisense Kelon Electrical Holdings Co Ltd Businessweek.com
- Hisense Kelon Hong Kong Stock Exchange Listed Companies Profiles
- Timeline Hisense Official Site
- Kelon: "We Are a Multibrand Company" businessweek.com, NOVEMBER 8, 2004
- Cellan-Jones, Rory (7 January 2013). "CES: The selling starts". dot.rory. BBC. Retrieved January 10, 2013.
- Hisense History Hisense Official Site
- Ling Liu (2005). China's industrial policies and the global business revolution: the case of the domestic appliance industry. Routledge. pp. 127–146. ISBN 978-0-415-35560-5. Retrieved 30 November 2011.
- Investor Relations: Kelon; Hisense Kelon Electrical Holdings Company Ltd Hisense Official Site
- Hisense Profile: Brand Hisense Official Site
- About Us Hisense USA official site
- History/Profile: Brief History of Hisense Australia Hisense Australia Official Site
- Whirlpool closing Shanghai washing machine plant reuters.com, Tue Apr 7, 2009 12:34pm EDT
- Whirlpool, Hisense in China appliance venture reuters.com, Mon Apr 28, 2008 9:30am EDT
- Timeline Hisense Official Site
- Hisense Company Ltd's E-Trade Profile businessweek.com
- Hisense Intelligent Commercial Equipment Co. Ltd. (HICE) Hisense Official Site
- About Us Hisense Intelligent Commercial Equipment Co., Ltd.'s Alibaba.com site
- Company Profile Hisense Mobile Communications Technology Official Site
- Hisense Mobile Technologies at 4th Rank in Qingdao’s Software Revenue News, Hisense Mobile Communications Technology Official Site, 08-12-03
- E Trade company profile for Hisense Optics businessweek.com
- Hisense Intros 120km SFP Transceiver lightreading.com, Aug. 19, 2004
- About Us Ligent Photonics Official Site
- Hisense USA Corporation Hisense USA official site
- Asian electronics maker grows in Gwinnett Hisense Corporate News, 2009-06-30
- Mobile Phones and Accessories Global Sources, September 2004, page 108, Google Book Search
- Ultra Low-power Handset to Begin Shipping in China in 2008 PRNewswire, BARCELONA, Spain, February 11
- Hisense Electronics Technological Service Co., Ltd fdbnetwork.com
- Management Hisense Official Site
- Real Estate Hisense Official Site
- E-Trade Company Overview Businessweek.com
- Hisense TransTech Hisense TransTech Official Site
- 芜湖盈嘉电机有限公司 (Wuhu Ecan Motors Co Ltd) 公司简介 (Company Profile) jdjob88.com
- Timeline Hisense Official Site
- Hisense Guangdong Multimedia Industry Base Put into Production Officially Official Site of the Shunde People's Government of Foshan, 2007-09-30
- China's Hisense to build industrial park in South Africa – Xinhua forbes.com, 01.21.07, 10:25 PM ET
- Timeline Hisense Official Site Cite error: Invalid
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- Household Appliances CEC China Official Site
- Timeline Hisense Official Site
- Hisense Establishes Variable Frequency Air Conditioner Base (5/9) appliancedesign.com, May 9, 2005
- Hisense Huzhou Projects CEC Official Site
- Hisense Nanjing Projects CEC Official Site
- Hisense Kelon Refrigerator Project CEC Official Site
- Hisense Arena Melbourne & Olympic Parks website
- Hisense Arena austadiums.com
- Sirkin, Harold L.; James W. Hemerling; and Arindam K. Bhattacharya (2008-06-011). GLOBALITY: Competing with Everyone from Everywhere for Everything. New York: Business Plus, 304. ISBN 978-0-446-17829-7 Archived September 23, 2008 at the Wayback Machine