Hisense

Hisense Group is a Chinese state-owned[2][3][4] multinational white goods and electronics manufacturer headquartered in Qingdao, Shandong Province, China.[5] It started out making radios in 1969.[6]

Hisense Co., Ltd.
Native name
海信有限公司
Hǎixìn Yǒuxiàn Gōngsī
TypePublic
IndustryElectronics
Home appliances
PredecessorQingdao No. 2 Radio Factory
FoundedSeptember 1994 (1994-09)
Headquarters
Qingdao, Shandong
,
China
Area served
Worldwide
ProductsMobile phones, smartphones, televisions, air conditioners, refrigerators, washing machines
RevenueUS$18.3 billion (2019) [1]
US$288.59 million (2018) [1]
US$1.14 billion (2019) [1]
OwnerQingdao Hisense Electric Holdings Co., Ltd. (29.9%) [1]
Subsidiaries54 companies and offices
Websitewww.hisense.com
Hisense
Simplified Chinese海信
Traditional Chinese海信

At present, Hisense owns two listed companies, Hisense Visual Technology Co., Ltd.[7] and Hisense H.A.,[8] listed in Shanghai, Shenzhen and Hong Kong.[9][10][11]

Hisense retails products under several brand names. These include Hisense, Toshiba, Gorenje, Kelon and Ronshen.[12] 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 1] The main products of Hisense are televisions; their first TV model CJD18 was produced in 1978.[13] It has invented a type of transparent television in 2013.[14] In 2015 it acquired the right to sell televisions in the Americas using the brand name of the Japanese firm Sharp.[15]

In 2020, it introduced the world's first true 8K 10 bit HDR screen TV that is based on an AI-powered HDR algorithm and an image quality engine claiming 6.5T supercomputing power.[16]

Hisense Group has more than 80,000 employees world-wide, 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, Israel, and more.[17]

History

In September 1969, Qingdao No.2 Radio Factory, the predecessor of Hisense Group, was established. 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 acquired the know-how to make TVs through a trial-production of black and white televisions ordered by the Shandong National Defense Office.[18] This involved the technical training of three employees at another Chinese factory, Tianjin 712, and resulted in the production of 82 televisions by 1971[18] and the development of transistor TVs by 1975.[Bell 2]

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.[18] 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 2] in Shandong province.[Bell 2]

Color televisions were manufactured through the purchase of a production line from Matsushita,[Bell 2] 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[18] 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 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,[18] which acquired ten failing enterprises by 1998.[Bell 2]

Eager to expand beyond consumer electronics, Hisense Group aimed to also become a regional leader in household appliances, computers and communications.[18] This strategy prompted great outlays of capital on R&D and on the creation of industrial parks,[18] etc.

In July 2015, Hisense bought a Mexico facility from Sharp for $23.7 million alongside rights to use the Sharp brand on televisions sold in North and South America.[15]

In November 2017, Hisense announced that it would acquire 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]

Products and services
A Hisense smartphone at Mobile World Congress 2015
A Hisense air conditioner in Tomaszów Mazowiecki (Poland)

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.

Brands

Hisense sells under multiple brand names.

  • Gorenje: Acquired 100% of shares in 2019 of the Slovenian Gorenje.
  • Combine: Affixed to no frills air conditioners and refrigerators, Combine-branded products may be purchased by Chinese farmers.[12]
  • Hisense-Hitachi: A brand of commercial air-conditioners designed and manufactured by a joint venture of Hisense and Hitachi.
  • Hisense Kelon: A high-end brand under Hisense,[12] can be found on refrigerators and air-conditioners.[21]
  • Ronshen: High quality, middle-end air conditioners and refrigerators retail under this brand name.[12]
  • Savor: A home appliance brand, from the eponymous Modern English word.[22]
  • Toshiba: On 15 November 2017, Hisense reached a $114 million deal to acquire a 95% stake of Toshiba Visual Solutions.[23]

Sharp

In 2015, Hisense received a five-year license to use the Sharp brand on televisions in the Americas. Hisense also bought a Sharp factory in Mexico.[15][24]

In June 2017, Hisense was sued by Sharp under its new owner Foxconn, seeking to have the licence 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 that 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."[25][26]

In February 2018 Sharp dropped the lawsuit.[27]

Operations

Subsidiaries
Hisense R&D center in Qingdao, China

Hisense owns over 40 subsidiaries,[28] both in and outside China. A list is available here.

Hisense-Hitachi Air-conditioning System Co Ltd was 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 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.[18]

Hisense Australia Pty Ltd is headquartered in Qingdao, China, Hisense's Australian subsidiary helps distribute Hisense products in this country.[29]

Hisense (Beijing) Electric Co Ltd was formed from the assets of a failing joint venture between Whirlpool and Beijing Snow Flake,[18] 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.[18] 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,[30] Hisense provides this joint venture with refrigerator know-how and Whirlpool, its washing machine manufacturing expertise.[31] The company operates a plant in Huzhou, Zhejiang province, which manufactures washing machines and large capacity refrigerators.[32]

Hisense Export & Import Co Ltd was created in 1991, this subsidiary is tasked with establishing OEM contracts with foreign companies.[Bell 4]

Hisense Hungary Kft is a failed[33] subsidiary established in 2004[Bell 4] as a joint venture with Flextronics, it was located in Sárvár, Vas County, Hungary.[Bell 4] Hisense Hungary Kft assembled TVs.[Bell 5]

Initially, few of the products it manufactured were sold under the Hisense brand name, and production focus was on OEM products,[Bell 4] 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.[33]

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

Main article: Hisense Kelon

Hisense Kelon Electrical Holdings Ltd is listed on two stock exchanges, Hisense Kelon is a large Hisense subsidiary.

Hisense Intelligent Commercial Equipment Co Ltd was 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.[34] It is also responsible for R&D[34] and manufactures at the Hisense Yellow Island Information Product Manufacturing Park.[35]

Hisense Mobile Communications Technology Co Ltd was 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.[36] Holding a total of 233 patents, 64 inventions and 116 software copyrights,[37] its products include mobile handsets, Linux OS smart phones, wireless modules, PC cards and industry customized terminals.[36]

Hisense Optics Co Ltd was 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.[18] This subsidiary operates a remote control factory, a degaussing coil factory and an accessory parts factory. Products manufactured include remote controls,[38] degaussing coils and injection molded parts. It may also produce, or did produce, optical instruments, cameras and telephones.[18] It operates an injection molding workshop in Nancun town, Qingdao.

Hisense Optoelectronics Technology Co Ltd was 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.[39] It is also responsible for marketing Ligent Photonics Inc products in Asia.[40]

Hisense South Africa Development Enterprise Pty Ltd is the company's first overseas subsidiary, this failed joint venture with South African bank NED[Bell 4] had a factory in South Africa that manufactured televisions and home-theater equipment.[Bell 4] It may still be responsible for R&D[Bell 6] and distribution to local retail outlets.[Bell 4]

Hisense USA Co is a Georgia-based subsidiary responsible for some activities in the US, Hisense USA may distribute products to retailers or establish an R&D center.[41] Founded in 2000[Bell 4] or 2001,[41] it was initially headquartered in Los Angeles.[Bell 4] It may initially have included an R&D facility.[Bell 3] As of 2009, it has locations in Gwinnett, Suwanee, and unincorporated Gwinnett County, Georgia.[42]

Ligent Photonics Inc was established in 2002 as a joint venture with Hisense, this subsidiary designs, develops and fabricates optical components for the telecommunications and data communications industries.[40] Products are designed at its St Charles, Illinois headquarters and manufactured in China.[39] This joint venture sells in North America, Europe and the Middle East through a network of sales representatives and in Asia through Hisense Optoelectronics.[40]

Qingdao Hisense Communications Co Ltd is a subsidiary manufactures mobile phones and operates an R&D facility.[43] 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.[43] One of its products, the Hisense C108, is the first mobile phone to use Qualcomm's biomimetic screen technology, Mirasol,[44] which allows it to be easily read in direct sunlight.

Qingdao Hisense Network Technology Co Ltd was established in 2004, this subsidiary grew out of an internal Hisense department, the Information Technology Center and provides IT consultancy services.[45]

Qingdao Hisense Property Management Co Ltd provides property management services, as well as product design, mold design, pattern making and mold processing and manufacturing through this subsidiary.[46]

Qingdao Hisense Real Estate Co Ltd was 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.[47]

Qingdao Hisense TransTech Co Ltd was founded in October 1998, this subsidiary manufactures and markets electronics[48] for urban traffic, public transport and logistics.[49] 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.[49] Its products are marketed under the HiCon, HiECS, HiATMP, and HiDVS brand names.[48]

As of 2005, Hisense Italy, Hisense's Italian office, may manage own-brand (as opposed to OEM) sales .[Bell 5]

Wuhu Ecan Motors Co Ltd is 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.[50] It is located in the Wuhu National High-tech and Industry Development Zone.[50]

Production bases

Hisense owns at least 14 manufacturing parks, worldwide,[35] and operates a number of production bases.

Hisense Guangdong Multimedia Industrial Base was put into operation on 28 September 2007, this industrial base produces flat panel TVs[51] and is located in the Shunde District of the city of Foshan, Guangdong.[52]

Hisense Industrial Park in South Africa is a Hisense South African production base will manufacture televisions and white goods.[53]

Hisense Information Industrial Park was created in 2001[54] and located in Qingdao, Shandong,[55] this industrial park is situated on 80 hectares of land.[34] 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.[51]

Hisense Pingdu Home Appliance Industrial Park was located in Pingdu, Shandong, it is home to Hisense Air Conditioning Co Ltd.

Hisense Yellow Island Information Product Manufacturing Park was encompassing over 200 acres (0.81 km2), Hisense Yellow Island Information Product Manufacturing Park is one of the twelve industrial parks owned by Hisense[35] as of 2009.

Huzhou production base is a Hisense inverter-type/variable-frequency air-conditioner production base is located in Huzhou, Zhejiang, and was set up on 8 May 2005.[56] 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.[57]

Hisense Whirlpool (Huzhou) Household Appliances Industrial Park is a production base that manufactures washing machines and refrigerators for a joint venture with Whirlpool is situated at this Huzhou park.[58] It comprises an 80,000 square meter factory on 20 hectares of land.[58]

Nanjing Refrigerator Industrial Park is located in the Nanjing Xingang Economic and Technological Development Zone of Nanjing, Jiangsu, a refrigerator production base is situated in this industrial park.[56] The site's factory is 52,000 square meters in size.[59]

Sichuan production base is a Hisense Kelon refrigerator production base with a 36,000 square meter factory is located in Chengdu, Sichuan.[60]

Sponsorships
Hisense Arena, Melbourne, Australia

In July 2008 Hisense entered into an agreement with Melbourne & Olympic Parks allowing them six-year naming rights to Hisense Arena, a Melbourne[61] venue for spectator sports such as basketball, netball, dance sports, cycling, gymnastics and tennis.[62] It is the first stadium in the world to be named after a Chinese company.[17] By 2018, the arena had been renamed Melbourne Arena.[63]

In China, Hisense has begun a relationship with the Beihang University (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.[64]

Hisense was the main sponsor of the UEFA Euro 2016.[65]

Hisense has announced its global partnership deal with the Union of European Football Associations (UEFA) for Men's National Team Football competitions ahead of the UEFA Euro 2020.[66]

Hisense has become an Official Sponsor of the 2018 FIFA World Cup Russia™.As an Official FIFA World Cup Sponsor, Hisense engages in various global marketing and advertising activities for both the FIFA Confederations Cup 2017 and the 2018 FIFA World Cup™.[67]

On 27 July 2017, Hisense and Aston Villa F.C. jointly announced a strategic partnership.[68]

In October 2013, Hisense along with Sharaf DG electronic announced an offer giving free BMW 316i 2014 model on purchase of a Hisense 84-inch ultra high-definition (4K) smart TV from Sharaf DG electronics for AED 129,999 ($35,395) in order to promote the Gulf Information Technology Exhibition.

In March 2020 Hisense announced they had entered into a three-year agreement to be a major sponsor of the NRL, this deal spans the NRL Telstra Premiership, State of Origin and NRL TV. Hisense has also been given the naming rights to Thursday Night Football as part of the agreement.

Hisense has been as an Official Team Supplier of Red Bull Racing.

Notes
  1. Bell, Sandra (29 March 2008). "International Brand Management of Chinese Companies: Case Studies on the Chinese Household Appliances and Consumer Electronics Industry Entering US and Western European Markets". Springer Science & Business Media – via Google Books.
  2. Bell, Sandra (29 March 2008). "International Brand Management of Chinese Companies: Case Studies on the Chinese Household Appliances and Consumer Electronics Industry Entering US and Western European Markets". Springer Science & Business Media – via Google Books.
  3. Bell, Sandra (29 March 2008). "International Brand Management of Chinese Companies: Case Studies on the Chinese Household Appliances and Consumer Electronics Industry Entering US and Western European Markets". Springer Science & Business Media – via Google Books.
  4. Bell, Sandra D. (2008), International brand management of Chinese companies: case studies on the Chinese household appliances and consumer electronics industry entering US and Western European markets (Google eBook), Springer, pp. 211–232/369, ISBN 9783790820300
  5. Bell, Sandra (29 March 2008). "International Brand Management of Chinese Companies: Case Studies on the Chinese Household Appliances and Consumer Electronics Industry Entering US and Western European Markets". Springer Science & Business Media – via Google Books.
  6. Bell, Sandra (29 March 2008). "International Brand Management of Chinese Companies: Case Studies on the Chinese Household Appliances and Consumer Electronics Industry Entering US and Western European Markets". Springer Science & Business Media – via Google Books.

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  59. Hisense Nanjing Projects Archived 8 July 2011 at the Wayback Machine CEC Official Site
  60. Hisense Kelon Refrigerator Project Archived 8 July 2011 at the Wayback Machine CEC Official Site
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