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Discussion Starter · #1 ·
Haier plans white goods behemoth
Gladys Tang, Hong Kong Standard
May 26, 2005

Haier Group, China's largest home appliance maker, is preparing to inject its stake in a mainland-listed unit into Haier Electronics Group, in an effort to make the Hong Kong-listed subsidiary one of the world's three biggest white goods companies.

Apart from the A-share company Qingdao Haier, the move would also embrace unlisted refrigerator and air-conditioner businesses owned by the parent. "The group will consolidate its unlisted white goods businesses and inject them into the A-share company before transferring its stake to Haier Electronics," Haier Electronics executive director Cui Shaohua said after the firm's annual general meeting.

Haier Electronics' prime products are washing machines and mobile phones.

Cui said there was no timetable for the move, which can proceed only after restructuring and asset valuation.

Haier Group holds 41.9 percent of fridge and air-conditioner maker Qingdao Haier and may increase its ownership to more than 50 percent, he said.

By beefing up the Hong Kong-listed company's assets, the group hopes to turn Haier Electronics into a capital-raising platform.

Cui suggested Haier Electronics could issue new shares to its parent in exchange for the A-share company. Haier Group owns 50.2 percent of Haier Electronics and has not ruled out the possibility of raising its holding.

Cui acknowledged that talks were under way with CCT Telecom, whose 23.98 percent stake in Haier Electronics could be diluted under such a scenario.

Haier Electronics recorded a net loss of HK$42.4 million last year, despite an 89 percent rise in turnover to HK$3.15 billion. Its stock is down 50 percent since the beginning of this year. It closed 3.19 percent lower at HK$0.152 Wednesday.
 

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yeah but the aritcle said Haier is going to become one of 3 world's largest white goods companies. I see a lot of LG refrigerators and microwaves, but what's the other one?
 

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Sen said:
yeah but the aritcle said Haier is going to become one of 3 world's largest white goods companies. I see a lot of LG refrigerators and microwaves, but what's the other one?
panasonic or LG?
 

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not Panasonic, White goods are home appliances, not consumer electronics, maybe it's Samsung, Whirpooll or Siemens?
 

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Sen said:
not Panasonic, White goods are home appliances, not consumer electronics, maybe it's Samsung, Whirpooll or Siemens?
Do you think i dont know what's white goods? :)
if i didnt know that, i would say Sony, NEC, Toshiba... ;)
as to microwaves, the biggest manufacturer is not LG, but a chinese company called Galanz, which is the worldwide leading supplier of mircrowaves.
the biggest aircondition manufacturer is mitsubishi, and Samsung produced the most TV sets last year, followed by TCL and Changhong.
 

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atoom said:
Do you think i dont know what's white goods? ha ...
if i didnt know that, i would say Sony, NEC, Toshiba...
as to microwaves, the biggest manufacturer is not LG, but a chinese company called Galanz, which is the worldwide leading supplier of mircrowaves.
the biggest aircondition manufacturer is mitsubishi, and Samsung produced the most TV sets last year, followed by TCL and Changhong.
Are you sure those figures are worldwide?
 

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atoom said:
heh, what do you think of 'worldwide'? check this pls

加賀電子と世界最大の電子レンジメーカー 中国GALANZ 社が
加贺电子和世界最大的微波炉制造商 - 中国Galanz公司
www.taxan.co.jp/news/pdf/02.6.28.pdf
Your source is outdated. I imagine you're not going to be very pleased with the current trends.
 

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If any Chinese company is going to become global, the first one will definitely be Haier. Actually, I think Haier already has gone global.
 

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cydevil said:
Your source is outdated. I imagine you're not going to be very pleased with the current trends.
the current trends? hah.. i dunno , :) i just know present-day Galanz is much stronger than 3 years ago, and could you tell me what's the current trends?
 

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atoom said:
and Samsung produced the most TV sets last year, followed by TCL and Changhong.
sorry, need to correct it, when TCL purchased French Thomson in July 2004, TCL has replaced Samsung as the leading global television maker (it produces 18 million television sets annually)
 

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I think that late commer companies can grab relatively easily the lower end of the market
that has already commodity status... you just go to the major outlet stores to see how cheap
the electronic good have become. Sometimes they are so cheap that I can no believe they are
making money.. they are more like charity giving away stuffs for peanuts... Ironically the americans are the biggest beneficiaries... because they take away the biggest added value of the product:
through branding and marketting the biggest chunk of the pie is for the retail/importers.

Having said that, Haier is now like LG or Samsung in 1980s when the strategy was to build
on volume sale. This stragegy is workable for very short period of time.... and you can not
run on loss forever....
 

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Discussion Starter · #18 ·
Company Profile
http://www.haier.com/english/about/index.html

Haier was incorporated in 1984 only producing household refrigerators. Over the past 20 years, the company has witnessed significant prosperity and is now a transnational organization widely recognized in the world community. Haier currently manufactures a wide range of household electrical appliances, 15,100 varieties of items in 96 product lines, and exports products to more than 100 countries. In 2004, Haier's global sales hit RMB101.6 billion and Haier brand, valued at RMB61.6 billion, topped all Chinese trademarks at a nationwide survey. On April 18, 2005, Haier was ranked 89th of the 2005 World's 500 Most Influential Brands by the World Brand Lab. Haier CEO Zhang Ruimin was placed 26th on the list of the World's 30 Most Respected Entrepreneurs issued by Finance Times on 7th December, 1999, the 6th of the Asia's 25 Most Powerful People in Business in Fortune publication August, 2004 and first of the 25 Most Powerful Business Leaders Inside China on the Chinese Edition of Fortune April 2005.

Haier’s international promotion framework encompasses global networks for design, procurement, production, distribution and after-sales services. Haier has established 10 manufacture complexes, 30 overseas production factories, 8 design centers and 58,800 sales agents worldwide.

From Zhongyikang Statistics, Haier’s leadership position in Chinese home appliance industry has been solidified by obtaining the domestic market share of 21% for overall appliances, far ahead of all its competitors, 34% for whitegoods, exceeding globally recognized domination line, and 14% for small electric appliances, overtaking all previous competitive rivals.

In the world market, Haier has gained first place in the United States for sales of compact refrigerators and wine coolers, in Iran for washing machines and Cyprus for air conditioners.

From Euromonitor Statistics, Haier is ranked fourth in the revenue from the global sales of whitegoods. Haier is determined to gain the top position in this sector.

On March 4, 2002, Haier unveiled its American headquarters in the landmark neo-classical building, the former offices of the Greenwich Savings Bank, on Broadway, Manhattan, New York, an indication that Haier had moved into a new phase for globalization of product design, manufacture and sales and had a strong determination for long-term development in the United States. On August 20, 2003, Haier erected an electric billboard in the shopping district of Ginza, Tokyo, symbolizing that Haier's determination to reach Japanese marketplace.

Facing the challenges brought by E-commerce and China’s accession to the WTO, Haier began a management restructuring program in 1998 backed by the efficient Haier Market-chain System practice. During first 5 years, Haier focused on the organization restructuring, management decentralizing with application of advanced information and network systems in order fulfillment, Market-chain performance, logistics, capital operation, after-sales service, product inventory and operational cost reduction. During second 5 year period from 2003, Haier carried out the SBU (strategic business unit) management to stimulate the enthusiasm of every employee and to enhance Haier’s competitiveness in global marketplace.

Over the past 20 years, Haier provided more than 100 million appliances to worldwide consumers and paid cumulatively a total tax of RMB13.6 billion, of which RMB2 billion in 2004, RMB5.5 million per day on average.

Haier has scheduled to finance 100 Project Hope primary schools, of which 47 are put into operation. Haier has 51,000 full time employees and hires 175,000 contract service personnel, providing a total of 230,000 job opportunities.

Haier’s management has been worldwide recognized. Haier’s experience has been introduced in 16 case studies in business merger, financial management and corporate culture by 7 foreign educational institutes, including Harvard University, University of Southern California, Lausanne Management College, the European Business College and Kobe University. Haier has been recommended to the EU Case Studies by Lausanne Management College for Haier Market-chain Management.

Haier’s goal is to become a global recognizable brand.

Profit Distribution : http://www.haier.com/english/investor/profit.html
 

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In Canada, we're starting to see Haier products such as wine coolers, fridges, and washing machines. IMO, I think Haier is already an international brand; however, it is not AS WELL known as companies such as Samsung, Whirlpool, GE, and even LG. Mind you that LG really made its presence in Canada fairly recently.
 

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I didn't know that Haier was found in 1984... Were private companies allowed in
China back then? or was/is a state owned company?
 
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