Changhong: Improve Profitability Through Multiple Points
2017-12-22

The new screen production line of large flat-screen TV (Visual Mianyang/picture)

(Mianyang News) Changhong Group has held a news conference in Sydney to launch its high-end brand CHiQ series products in Australia for the first time. CHiQ series are a series of smart home appliances, including TVs, refrigerators, freezers, etc. As a series of differentiated products aiming the future, the brand CHiQ has gone to the markets in China, South America and Europe. The launching of CHiQ series products in Australia represents another expansion of Changhong Group to ¡°overseas territory¡±, attracting much attention.

Based on the complex macro-economy and the current development stage of home appliance industry, Changhong Group defines this year as the year to overcome difficulties. This year, it will endeavor to improve core competencies, strive to get rid of deep-rooted problems throughout its development and promote virtuous development of the company. From January to October, the total revenue of the company was 91.968 billion yuan, a year-on-year increase of 13.9%. The total industrial output reached 85.434 billion yuan, an increase of 8.21 percent over the previous year. 64.404 billion yuan was made in Mianyang, up 9.23% year on year. The total industrial added value was 18.237 billion yuan, an increase of 8.36 percent year on year. 15.305 billion yuan was made in Mianyang, an increase of 11.62 percent year on year.

Over the past five years, the total revenue of Changhong Group has been spiraling, with its overall businesses growing steadily. This year has seen a periodic rise in the costs of panels, chips, refrigerants and other raw materials, which inhibited increasing the profitability temporarily. However, it is noteworthy that its main products such as color TVs, refrigerators, air conditioners have been outselling than other companies in the industry. Huayi Compressor Co., Ltd. has steadily taken over the lead in the market race by continuously expanding its market share. Changhong IT has been the top 3 in the IT distribution industry at home, with a higher growth rate than its rivals. The key military project 625 ¨Cthe radar tracking and searching project, has won a bid, which makes Changhong Group a highly-qualified military supplier with leading technological capabilities in this field. As the prices of external main materials decreased, the company has been continuously enhancing its ranking in markets, and strengthening its interior operation and management and technological capabilities. So, its profitability has a huge room to increase in the future. From January to October, the cumulative revenue of the company increased by 14 percent year on year. It is forecasted that a double-digit growth will be achieved for the whole year.

Several decades of manufacturing advantage has become one of the core competencies of Changhong Group. As one of the enterprises enlisted into ¡°made in China 2025¡± plan, it focuses on ¡°service-oriented manufacturing¡±. The program of cloud multimedia classroom, the program of ¡°Internet plus wisdom learning cloud classroom¡± and the program of ¡°remote interactive classroom¡±, launched by Changhong Education Technology, have achieved the effect of ¡°1 + 1 >2¡± and huge commercial values. On the other hand, it focuses on ¡°providing manufacturing-oriented services¡±. Changhong Intelligent Manufacturing aims at the ¡°automatic and intelligent¡± trend of intelligent manufacturing equipment industry. To that end, it has carried out several programs, such as the intelligent manufacturing project of multimedia industry chain and the training system research project for industrial robots. So far, it has achieved the transition from designing and implementing single production lines to providing integrated solutions. It is expected that the company will make over 170 million yuan in sales income this year, making a profit of more than 15 million yuan.

In recent years, Changhong Group has combined the quality and quantity of its development by focusing on its core businesses, fostering reform and transformation and boosting employee morale. With the implementation of the 13th Five-year Plan, it has made numerous progress in its assets, capabilities, talents, capitals and so on. The 13th Five-year Plan period will also see its revenue and profits grow by leaps and bounds, which intangibly furnishes Changhong Group with wings so that it can take off once again. Before the upcoming new year, Changhong Group will seize opportunities and aim at industrial development, entrepreneurial transformation, technical innovation, internal management and other aspects. It will also devote itself to providing consumers with high quality products so as to help Mianyang achieve the goal that the GDP of this year will reach 200 billion yuan.

(Huang Xiaoqin, all-media reporter from Mianyang Daily)