Hisense Retains Top Spot in Government Survey

The Most Competitive Large-sized Chinese Company for the Second Year


Nov 09, 2007, 00:00 ET from Hisense

    BEIJING, Nov. 9 /Xinhua-PRNewswire/ -- Hisense announced today that it
 has once again topped a survey analyzing the most competitive large-sized
 companies in China. The China National Statistics Bureau Survey Center and
 the China Industrial Information Issuing Center jointly released their
 "Annual Report on the Competition of China Large-sized Enterprises" during
 a conference at the Great Hall of the People in Beijing on October 27. Due
 to the Company's continued excellence in innovation, Hisense topped the
 list with a comprehensive index of 84.25.
     This is the second year that the two organizations have released such a
 report on the competitive power of some 500 large-sized Chinese
 enterprises. The Survey Center for Services Statistics of NBS (formerly
 known as the Survey Organization) has compiled statistics based on the
 competitive power and influence levels of each enterprise by utilizing
 relevant economic and management theories, as well as internationally
 recognized statistical methods.
     The evaluation covered all 2,248 enterprises listed in the Annual
 Statistic Report of Enterprise Groups released by NBS from 2004 to 2006.
 The constructed groups are composed of national level enterprises,
 experimental enterprises approved by the State Council, enterprises
 approved by Ministries and Commissions directly under the State Council,
 enterprises approved by the provincial people's government, and other
 enterprises with both revenue and capital over RMB500 million.
     Zheng Xinli, the Deputy Director of the Policy Research Office of the
 CCCPC observed that the level of investment a company dedicates to
 technological innovation largely determines competitive power. This list
 defines a company's "Healthy and Rapid Growth" from the brand new
 perspective of competitive power.
     The Report indicates that the average R&D cost ratio of the Chinese
 enterprises in 2006 was 1.1% while the R&D staff ratio was 2.89%. However,
 Hisense has invested 5% of its revenue into R&D, nearly five times that of
 the average level. Hisense has also recruited more than 2,500 R&D staff to
 help realize its continued development throughout its seven R&D centers in
 China, America, the Netherlands and South Africa.
     On average, the competitive mechanism index used to evaluate the
 competitive power of the enterprises shows that the institutional
 mechanism, the decision mechanism, the activation mechanism and the
 management mechanism have all been greatly improved in 2006 while the
 innovation mechanism has been following a regressive tendency. Big
 investments in R&D have given Hisense the much-needed credit and have
 pushed the Company to the top of the list once again.
     "The key factor driving Hisense Company is the development strategy of
 'Technological Enterprise;' avoiding rushed decisions about operations and
 taking both short-term and long-term interests into consideration," said
 Zhou Houjian, Chairman of the Board of Directors of Hisense. "Hisense has
 drawn many lessons from companies that have failed to pay due attention to
 both long and short-team interests, and has excelled at finding the right
     Jiang Zhenghua, the Vice-chairman of the Standing Committee of the
 National People's Congress and the Chairman of the Central Committee of
 Chinese Peasants' and Workers' Democratic Party; Wang Wenyuan, the Vice-
 chairman of the National Committee of the Ninth Chinese People's Political
 Consultative Conference; and Xie Fuzhan, Secretary and Director of the
 National Bureau of Statistics of China all attended the conference.

SOURCE Hisense