Mission Statement, Vision, & Core Values (2024) of Hisense Home Appliances Group Co., Ltd.

A Brief History of Hisense Home Appliances Group Co., Ltd.

Founded in 1969, Hisense Home Appliances Group Co., Ltd. is a Chinese multinational conglomerate known for its manufacturing of home appliances and electronics. Headquartered in Qingdao, China, the company started as a small radio factory and has since evolved into a global leader in the home appliance industry.

In the early 1990s, Hisense began expanding its product lines to include refrigerators and air conditioners. By 2001, the company was listed on the Shenzhen Stock Exchange (stock code: 000921), which bolstered its growth. Hisense reported revenue of approximately RMB 160 billion in 2021, with its international sales growing significantly over the years.

Hisense also established several joint ventures and partnerships, including collaborations with major brands like Samsung and Toshiba, to enhance its technology and expand its market reach. In 2015, Hisense acquired the television business from Sharp Corporation, which enabled the company to enhance its presence in the global TV market. As of 2022, Hisense's share of the global TV market reached approximately 15.4%, ranking it among the top three manufacturers worldwide.

In recent years, Hisense has focused on innovation and smart technology integration into its products. The company invested over RMB 10 billion in R&D in 2021 alone, positioning itself as a key player in the smart appliance sector. Hisense has released several smart home products, including air conditioners and refrigerators, equipped with Internet of Things (IoT) capabilities.

As of the fiscal year 2022, Hisense reported a total asset value of RMB 200 billion, with net profits of approximately RMB 7 billion. The company has expanded its manufacturing facilities globally, establishing production plants in countries such as Mexico, South Africa, and the Czech Republic to cater to local markets.

Financial Performance Overview

As of 2023, Hisense's aim is to further penetrate the smart home appliance market, targeting annual growth in revenue of about 15% and maintaining its status among the top global manufacturers. The ongoing emphasis on R&D and innovation is expected to propel the company's growth, making it a formidable competitor in the home appliance sector.

A Who Owns Hisense Home Appliances Group Co., Ltd.

Hisense Home Appliances Group Co., Ltd. is a major player in the global home appliance market. As of the latest financial disclosures, Hisense is owned primarily by the Hisense Group, which is a leading electronics and appliance manufacturer based in China.

The Hisense Group was founded in 1969 and has since expanded its operations to include a vast range of products such as televisions, refrigerators, air conditioners, and washing machines. The company's revenue for the year 2022 was reported at approximately RMB 170 billion (around $24 billion), showcasing its substantial market presence.

In terms of ownership structure, the Hisense Group is state-owned, with significant stakes held by the Qingdao municipal government. This aligns with the broader initiative of the Chinese government to support and promote domestic enterprises in key technological and manufacturing sectors.

Hisense's international strategy has fostered partnerships and joint ventures aiming to increase its market share globally. The company's presence in Europe, North America, and other regions has been bolstered by around 15,000 employees worldwide, working across multiple manufacturing plants and R&D centers.

As of Q3 2023, Hisense has reported consistent year-on-year growth, with a market capitalization of approximately $30 billion. This growth is attributed to its innovative product offerings and strategic investments in technology and design.

In the home appliance segment, Hisense is recognized as a market leader, with key products such as refrigerators and air conditioners accounting for around 40% of its total sales. The company’s commitment to R&D is evidenced by its annual investment of about 5% of its revenue, amounting to approximately $1.2 billion.

Overall, the ownership of Hisense Home Appliances Group reflects a strong foundation in state support, private investment, and a focus on innovation, positioning the company for continued growth in the competitive home appliances market.

Hisense Home Appliances Group Co., Ltd. Mission Statement

Hisense Home Appliances Group Co., Ltd. aims to become a global leader in home appliances by focusing on innovation, quality, and customer satisfaction. Their mission emphasizes creating intelligent and connected home appliances that enhance the quality of life for consumers worldwide. This commitment to quality is reflected in their extensive range of products, including refrigerators, washing machines, and air conditioners.

In 2022, Hisense reported a revenue of approximately RMB 220 billion (around $32 billion), with a growth rate of 12% compared to the previous year. This growth is attributed to their focus on technological innovation and expansion into international markets.

Hisense also places a strong emphasis on research and development (R&D), investing around 7.5% of their revenue in this area. In 2022, this amounted to approximately RMB 16.5 billion (around $2.4 billion). This focus on R&D has resulted in over 11,000 patents globally, solidifying their competitive edge in the home appliance market.

The company’s commitment to sustainability is evident through its efforts to reduce carbon emissions by 30% by 2030, aligning with global standards and consumer expectations. Hisense aims to achieve a circular economy through the use of recyclable materials in their products.

In terms of market share, Hisense has captured approximately 12% of the global television market and 7% of the refrigerator market as of the end of 2022. This growth has been amplified through strategic partnerships and collaborations with various international retailers.

Hisense maintains a strong presence in over 160 countries and regions, with production bases located in China, Mexico, South Africa, and other countries. This global footprint supports their mission to provide high-quality products to a diverse customer base while adapting to local market needs.

In summary, Hisense Home Appliances Group Co., Ltd. is dedicated to advancing technology, sustainability, and customer satisfaction as part of their mission. Their impressive financial performance and commitment to innovation position them as a significant player in the global home appliance market.

How Hisense Home Appliances Group Co., Ltd. Works

Hisense Home Appliances Group Co., Ltd. operates as a major player in the global home appliance market. The company designs, manufactures, and sells a wide range of products including refrigerators, washing machines, air conditioners, and television sets. In 2022, Hisense reported a revenue of approximately ¥167.67 billion (about $24.77 billion), reflecting an increase of 10.3% compared to the previous year.

The company has diversified its operations into various segments, with a notable focus on smart home technology and energy-efficient appliances. As a result, Hisense has positioned itself as a leader in innovation, integrating advanced features such as IoT connectivity in many of its products.

In terms of geographical distribution, Hisense operates in over 160 countries with major markets in North America, Europe, and Asia. The company's global strategy combines local manufacturing and assembly with a robust supply chain, allowing it to respond swiftly to market demands.

Hisense is heavily invested in research and development (R&D), with an estimated expenditure of about ¥11 billion (around $1.65 billion) in 2022, representing approximately 6.5% of its total revenue. This investment has been pivotal in driving product innovation, especially in energy-efficient appliances aimed at reducing carbon footprints.

The company has also pursued strategic partnerships to enhance its technological capabilities. Recently, Hisense collaborated with Tech companies to integrate AI functionalities into its products, further enriching the user experience.

In terms of production, Hisense operates numerous manufacturing facilities around the world, notably in China, Mexico, and South Africa. The company has a production capacity reaching over 40 million appliances annually, allowing it to meet global demand effectively.

Approximately 20% of Hisense's revenue is derived from exports, with strong demand from markets such as Europe and North America. The company is recognized for its competitive pricing strategy, which has contributed to its growing market share.

Hisense has also made significant strides in sustainability. The company aims to achieve a 50% reduction in CO2 emissions across its manufacturing processes by 2030, aligning with global environmental standards.

Overall, Hisense Home Appliances Group Co., Ltd. operates through a multifaceted approach combining innovation, strategic partnerships, and efficient production methods to maintain its competitive edge in the global home appliance industry.

How Hisense Home Appliances Group Co., Ltd. Makes Money

Hisense Home Appliances Group Co., Ltd. generates revenue through a diverse portfolio of products, primarily in home appliances and consumer electronics. Some of the key revenue streams include the sales of refrigerators, air conditioners, washing machines, televisions, and kitchen appliances.

Key Revenue Contributions

• Refrigerators: In 2022, Hisense sold approximately 15 million units of refrigerators globally, contributing around 25% of total revenue.
• Air Conditioners: Sales of air conditioners accounted for about 30% of the total revenue, with over 10 million units sold in the same year.
• Televisions: Hisense is one of the largest manufacturers of televisions, with sales exceeding 20 million units in 2022, representing 20% of revenue.
• Washing Machines: The washing machine segment contributed 15% to total revenues, with approximately 8 million units sold.
• Other Appliances: Other kitchen and small appliances made up the remaining 10% of the revenue stream.

Financial Performance

For the fiscal year ending December 31, 2022, Hisense reported a total revenue of approximately RMB 150 billion (around USD 23.5 billion), marking a growth of 14% year-over-year.

Cost Structure

The major cost components involved in Hisense's operations include:

• Raw Materials: Approximately 60% of total costs.
• Labor Costs: Accounts for around 20%.
• Distribution and Logistics Expenses: Roughly 10%.
• Marketing and Advertising: About 5%.
• R&D Investments: Contributes around 5% as Hisense continues to innovate in technology.

Market Expansion

Hisense has been expanding its market presence both domestically and internationally. Key growth areas include:

• North America: Hisense has increased its market share to around 13% in the U.S. television market as of 2022.
• Europe: The company has captured approximately 7% of the refrigerator market in Eastern Europe.
• Asia Pacific: Rapid growth in demand for air conditioners has led to a market share of over 15% in several Asian countries.

Recent Financial Highlights

Partnerships and Collaborations

Hisense collaborates with various technology firms to enhance its product offerings. Notably, in 2021, Hisense partnered with Qualcomm to integrate advanced AI features in its smart appliances.

Conclusion on Business Sustainability

Hisense's growth strategy focuses on sustainable practices and innovation, ensuring that it remains competitive in the global market. Their commitment to R&D allows them to refine existing products while exploring new markets and technologies.