Sichuan Changhong Advances "Two Transformations" with a Steady Growth

Sichuan Changhong received an operating revenue of 77.632 billion yuan with a year-on-year increase of 15.57 percent in 2017.

Changhong CHiQ television production line (data and picture)

(Mianyang News) (reporter: Wang Qing) Sichuan Changhong published the 2017 annual report on April 17. It shows that Changhong has achieved preliminary results in orderly promoting the service-oriented manufacturing transformation and manufacturing-oriented service transformation. During the report period, Sichuan Changhong received an operating revenue of 77.632 billion yuan with a year-on-year increase of 15.57 percent. Despite overall downward trend of the industry, such products as televisions, refrigerators and air conditioners achieved steady growth. Industries with high added value, including IT distribution, services, systems integration and war industry production lines, showed positive growth with the revenue proportion growing year by year.

In 2017, Changhong continued to deepen its research and development in artificial intelligence technology. While maintaining its leading position in the industry, it continuously brought forth new technologies from the old ones. The achievements, from the first voiceprint recognition technology in the world to the application of full-space voice interactive system, represent that Changhong has already led the industry in China and even the world. Its new artificial intelligence products have attracted much attention from the market. The year-on-year increase rate of its overall average retail price reached 17.8 percent, ranking first in the industry.

Under the background of consumption upgrade, Meiling, a subsidiary of Changhong, maintains its leading position in intelligence, frequency conversion, copious cooling, frost free and other technologies. In 2017, Meiling achieved an operating revenue of 7.465 billion yuan, up by 11.77 percent over the previous year. Huayi, another subsidiary of Changhong, presented a more eye-catching performance. Its total production and marketing volume of refrigerator compressors hit another new record high; it produced 44.41 million compressors and sold 43.31 million the whole year, up by 9.87 percent and 8.25 percent respectively compared with the previous year. It also made strong product structure adjustment; the sales volume of variable frequency compressors and commercial compressors realized year-on-year increases of 77 percent and 17 percent respectively. The global sales revenue of Changhong¡¯s air-conditioner continued to grow rapidly, and its profitability increased significantly. Among which, the profit from domestic operations rose greatly over the previous year.

In terms of military power supply, Changhong has further expanded its market for military equipment products, which are used for navy, land force, air force and strategic rocket force. The annual order quantity for land-based power supply products has doubled year on year. Meanwhile, Changhong has also built an urban rail marketing team to advance the comprehensive development of the urban rail marketing business. It has become one of the important suppliers of China¡¯s four major original equipment manufacturers and started to supply batch products for various high-speed rail projects. It achieved a sales revenue of 503 million yuan the whole year, an increase of 15.32 percent over the previous year, and a profit of 62.7122 million yuan with a year-on-year increase of 4.72 percent.

The annual report shows that in terms of IT distribution business, Changhong Jiahua reached a new record high again in sales volume and profitability throughout the year. It achieved a sales revenue of 18.186 billion yuan, a year-on-year increase of 12.91 percent, and a profit of 211 million yuan, up by 7.42 percent compared with the last year. Over the past year, the company has further integrated international technology and product resources to develop its traditional distribution business with a steady peace. The overall distribution scale has been among the top three in the country, and the distribution share of products of over a dozen brands, including Hewlett Packard and Inspur, has ranked first among manufacturers.

At the same time, Changhong has continued to actively develop the Internet of Things. It links users, equipment, and services together through the bond of data operation to integrate internal and external resources. By doing so, it can ¡°run business in an open-door way¡± and gradually form a ¡°user-oriented¡± industrial ecosystem. It has promoted the service-oriented manufacturing transformation and manufacturing-oriented service transformation orderly, laying a good foundation for its future development and realizing its value re-creation. In addition, the overseas market has become an important battleground for the development of China¡¯s household appliance industry. In the past year, Sichuan Changhong¡¯s overseas revenue registered 14.227 billion yuan, an increase of 8.91 percent over the previous year.