Hisense (Shandong) Information Technology

Hisense (Shandong) Information Technology Co., Ltd. (HSITC) was registered on April 28, 2001 in Jinan and is the major IT arm of the Hisense Group. HSITC is committed to the development and marketing of products involving security technology, intelligent traffic and commercial intelligence. HSITC owns a 4,000m2 modern R&D base and a production base. HSITC employs a staff in excess of 120. 80% of the staff are university graduates and 10% are possess master and doctoral-level advanced degrees. During its three years of development, HSITC has matured into a high-level product and system integrator, and has established a complete customer resource management system and after sale service system and is able to deliver top class products and quality service to its customers. In 2001, HSITC was rated by Shandong Provincial Department of Information Industry as a “Model Software Company” and in 2003 the company was conferred the title of “High-tech Enterprise” by Shandong Provincial Department of Science and Technology.

Hisense Optics

Hisense Optics Co., Ltd. (HOC) was established in April 1996 and is a subsidiary of Hisense Company Limited. HOC is composed of three separate divisions: a remote control factory; degaussing coil factory and an accessory parts factory. Major products of HOC include color TV remote controls, air-con remote controls, degaussing coils and injection molding parts.

The remote control factory is equipped with re-flow welding machines, wave welding machines, 41 sets of instruments (including function testers, infrared luminometers, quiescent current testers etc.), 10 manual assembly lines and 2 production lines (i.e. 1 surface mounting line and 1 insertion line) procured in 2000 for the production of air-con remote controls. Presently, HOC has the capacity to output 5 million color TV remote controls and I million air-con remote controls per year. In addition, the factory has the capability to process various types of PCBs.

The degaussing factory boasts 34 sets of equipment including taping machines, winding machines and molding machines etc., The factory’s products passed examination conducted by the State Center of Broadcasting and TV Products Quality Supervision and Testing and received its safety certification in June 2001, since which time it started batch production. In 2002, the factory outputted 2.45 million pieces of degaussing coils of various specs. By now, the factory is able to output 6 million degaussing coils per year.

HOC attaches great importance to product quality management. In 1998, the company set up its quality management system and passed ISO9002 quality system certification for remote control products. In 2001, HOC further perfected its quality management system in accordance with GB/T19001-2000 ; ISO9001:2000. In November the same year, HOC passed quality management system certificate upgrading review and received ISO9001:2000 certificate. In recent years, HOC has spared no efforts to expand its scale of production and provide improved product quality. The company’s consistent high quality and service is well appreciated by its customers.

In 2004, HOC constructed its 2,400m2 injection molding workshop in a new facility located in Nancun town, Qingdao. The upgrading of facilities has furthered the company’s commitment to expand its production capability of injection molding parts.

Hisense Electronics Technological Service

Hisense Electronics Technological Service Co., Ltd. (HETSC) was established in 2004 with registered capital of RMB 5 million and is a wholly owned subsidiary of Hisense Company Limited. The predecessor of HETSC was the Hisense Information Technology Center – a department inside Hisense Group.

Through years of information-based development, HETSC has established a solid information platform and an information-based application system (including network platform, communication platform, mail platform, portal website, paging center and ERP system) for Hisense Group.

Presently, HETSC employs 60 plus specialized workers including certified engineers, experienced network communication experts, software engineers, database experts, system engineers and EPR consultants.

HETSC boasts rich experience and competitive technical strength and is able to render all-round IT service to various customers, including government agencies. Presently, HETSC and Hisense Network Technology Co., Ltd. and Hisense Digital Technology Co., Ltd. have formed an alliance to jointly explore the information service industry.

Business Background:

Based on Hisense service policy of “High Tech, High Quality and Best Service”, HETSC is committed to deliver professional and quality IT services to its customers.

Major Business of HETSC include:

• IT Contract Service: Professional and all-dimensional IT service.
  - 7*24*365 Hotline Service
  - Anti-virus Service
  - On-line Technical Support
  - Network Fault Removal
  - Operating System Installation
  - Mail Technical Support
  - Troubleshooting
• Server Co-location: Delivering a fast, secure and reliable server co-location service through its specialized IDC center in the Hisense Tower.
  - 100M optical fiber access to an internet trunk
  - Maintaining constant temperature and humidity in computer rooms by air-con.
  - 24-hour Surveillance System
  - Two-way Access Control System
  - Two Way Power Supply + Generator +Two Way UPS to guarantee constant power supply
  - Automatic backup system can guarantee security of business data
  - Perfect IDC management system
• System Integration: Years of experience in comprehensive wiring and system integration projects (including projects in Hisense Tower, Hisense Information Industrial Park and Hisense R&D Center)
  - Comprehensive Wiring Service
  - Network System Integration
  - Website Design & Development
• ERP Consultation Service: Experience in SAP R3 and Oracle EPR system implementation. Professional EPR system construction and consultation service.
  - SAP System Construction & Consultation
  - Oracle System Construction & Consultation
  - Third Party Logistics Interface Consultation
• Customized Service: Information-related Consultation Service to Various Businesses (Incl. government agencies)
  - IT Planning Consultation
  - Video Conference Project Consultation
  - Network Project Consultation
  - Paging Center Project Consultation

Projects Undertaken

• Hisense Group SAP R3 System Construction, Maintenance and Management
• Hisense Group 50-City WAN Construction, Maintenance and Management
• Hisense Group Nationwide Video Conference System Construction, Maintenance and Management
• Hisense Group IDC & Backup System Construction, Maintenance and Management
• Hisense Group OA System Construction, Maintenance and Management
• Hisense Group “3 Parks & 1 Tower” Network Construction, Maintenance and Management

Hisense Optoelectronics Technologies

Hisense Optoelectronics Technologies Co., Ltd. (HOTC) is a company jointly invested by Hisense Group and Ligent International Inc. In March 2003, the company was approved by the Ministry of Foreign Trade and Economic Cooperation and established as a Sino-foreign joint stock company. Located at No. 11, Jiangxi Road, Qingdao, inside the Hisense R&D Center, HOTC engages in the development, production, marketing and services related to optical transceiver modules.

Relying on Hisense 30 plus years of experience in large-scale manufacturing and its rich commercial resources and based on a novel management concept and the cutting-edge technologies of Ligent, HOTC has established a unique operational mode characterized by “Resources Sharing, Complementary Business, Uniform Decision-making and Joint Management”

HOTC boasts a talented international R&D team composed of senior specialists in the field of optical communication. HOTC has also established in Qingdao, China and Chicago, USA top class labs furnished with state-of-the-art equipment. The two labs undertake the R&D work of high-end optical communication technologies and design products based on international standards and customer’s personalized needs.

HOTC owns a world-class optoelectronics production base in Qingdao and the facility is equipped with advanced automatic quality control system. Agilent automatic testing instruments are used for process testing and final testing, which greatly increases testing speed and can ensure the consistency of product performance. SMT is adopted for the assembling of PCB, which is supplemented by manual mounting. Laser welders are used to produce various optical parts, which reduce cost.

HOTC adopts the ISO9000 management system and passed ISO9000 quality system certification in November 2003. HOTC also passed TUV, EMC, UL and FCC international certification and its products are in rigid accordance with relevant industrial and international standards. Various technical indexes of HOTC have reached advanced levels in the industry.

HOTC has marketing and business offices in Beijing, Shenzhen, Shanghai and Qingdao and its marketing network covers major communication products markets in Asia, North America and Europe.

HOTC is always reaching higher to develop the most state of the art products, and endeavors to develop modules of higher efficiency. Based on Hisense philosophy of “Creating Perfection, Serving the People” and the target of being the “Top Chinese Company and a Famous Global Brand”, HOTC takes the initiative to explore the upstream and downstream industries so as to enrich its products chain and to grow into a optoelectronics company advanced in technology, excellent in quality, with a complete product series and globally competitive.

Hisense-Hitachi Air-conditioning System

Hisense-Hitachi Air-conditioning System Co., Ltd. (HHASC) was jointly established by Hisense Group and Hitachi Air-conditioner Company on January 8, 2003. The two companies each contributed 50% of the registered capital. HHASC is a JV integrating R&D of commercial air-con technology, products manufacturing, marketing and customer service.

The groundbreaking ceremony of HHASC production base was held on January 18, 2003 and in July the same year, the first product rolled down the production line.

In 2004, HHASC and its products passed ISO9000:2000 certification and 3C (China Compulsory Certification). Currently, the JV is licensed to use both trademarks of “Hisense-Hitachi” and “Hitachi” and is rapidly developing into a major commercial air-conditioner supplier in China.

With its sights aimed high, HHASC is committed to becoming a pioneer in the professional technology field to actively implement an operation system featuring professional techniques; professional manufacturing, professional marketing, professional design, professional service and professional management and to install eco-friendly air-con systems bearing the most advanced technology on commercial buildings around the world. Major products of HHASC include: free-setting intelligent inverter-type multi-split commercial air-conditioning systems and S/F mini inverter-type household central air-conditioning systems.

As a commercial air-con production and marketing base jointly established by Hisense and Hitachi, HHASC owns a commercial air-con production facility of over 100,000m2 in in area located in the Hisense Information Industrial Park. The facility is well equipped with state-of-the-art production and quality assurance equipment, which, combining with the cutting-edge air-conditioning system technologies offered by Hitachi, enable HHASC to launch pioneering commercial air-conditioning products every year. Today, HHASC’s annual production capacity has exceeded 150,000 sets.

Furthermore, the production facility is furnished with advanced processing equipment and production lines. Currently, over 90% of its parts are imported from Japan. The top class production techniques combined rigid quality control and optimized sorting and an enthalpy measurement lab, electrical control lab, environment lab, acoustics lab and aging lab of global standards ensures the high quality of Hisense-Hitachi commercial air-conditioning products.

HHASC is a follower of the talent-oriented management concept and always regards its staff as the basis for development and competitiveness. Treasuring talent, respecting talent and cultivating talent is the way through which the company approaches and taps human resources. HHASC realizes that only talented workers can innovate and design “personalized” products. In a deeper sense, HHASC’s “talent-oriented” concept is embodied to supply better products and service to its customers so that people can lead a comfortable and cozy life in the eco-system.

Presently, HHASC has established 20 plus business offices and 5 representative offices around China and its marketing network covers the whole country expect Tibet. Moreover, its products are sold back to Japan. HHASC possesses a flawless after-sales service system and can engage service providers in training and testing on service standards and management skills. Now, HHASC can render complete and professional services from installation, test operation and maintenance to customer operation, and training. HHASC has also established an information archive to handle feedback from the customers in stages so as to maintain a lifetime relationship with its customers. The Service concept of HHASC is that “Service is a part of our product’s quality and a guarantee to the survival of our business.” HHASC is a protector of the customer’s interests and a guard against customer worries; its considerate services are widely appreciated by its customers.

Hisense Digital Products

Hisense Digital Products Co., Ltd. (HDPC) was established in January 2004 and is a trendsetter in Hisense 3C initiatives. HDPC has integrated its resources with key IT partners to become a leading player in the communications, electrronics and coordinated computation business and has inherited the rich experience of Hisense in the PC market. HDPC aims to become a leading 3C integrated products, solution, content and service provider in China.

HDPC boasts highly-qualified technical workers, a distinguished management team, efficient business management platform, powerful R&D structure and a modern enterprise management system, forming a solid foundation to increase its competitiveness and customer satisfaction.

HDPC uses the abundant resources of the Hisense Group and its strategic partners to spearhead its growth in the Digital products industry. The company combines its proprietary knowledge with the cutting-edge technologies in IT, communication and consumer electronics, integrated with future-oriented innovative technology to satisfy the needs of Chinese users. Thus HDPC can continuously launch products, solutions and services based on market needs. Blessed with an ever increasing market share of 3C integration, HDPC has branched out into several business fields covering digital home, collaborative commerce, mobile digital, wireless application and is able to supply PC (desktop, notebook, and graphic workstation), digital AV (MP3, DVD, Portable DVD etc), wireless network products (WLAN) and business and household-oriented solutions and services. Hisense computer, as the major product of HDPC, received the “Certificate of Products Exempted from Quality Inspection” and ranked among the first group of computer systems to be granted this privilege. HDPC was awarded the title of “Famous China Brand” in September 2001, and it reclaimed the same title in September 2004.

Based on the service concept of “One Time Promise, All Time Commitment”, HDPC spares no efforts to provide its customers with the type of service “Once Chosen, Never Fallen” characterized by its home appliance commitment strategy. This commitment was recognized by the China Quality Inspection Association, which awarded HDPC the title of “Enterprise with Double Guarantee in Quality and Service”. Meanwhile, the nationwide marketing channels and supportive partners enable products and services of HDPC to win universal appreciation from its customers.

Our Target: To become the leading high-tech corporation in China.

Our Mission: To work hard for the maximum benefit of our customers, our shareholders and our staff and to deliver a top class digital experience through leading products, solutions, content and service.

Hisense Intelligent Commercial Equipment

Hisense Intelligent Commercial Equipment Co., Ltd. (HICEC) is a company specialized in the R&D, production, marketing and service of commercial Point of Sales (POS), tax-controlled POS and various peripherals. After being confirmed by the Ministry of Information Industry as the first designated POS manufacturer in China, HICEC is considered the top brand in China’s POS manufacturing for its high-level technology and innovative products.

As a company with the largest share in the domestic POS market, HIECE spares no effort to enrich its product lines based on the concept of “Developing Fine Products, Delivering Fine Service, Relying on Talent and Pursuing Perfection”. Two series of products (the “Dragon” series commercial POS and the “Kirin” series tax-control POS) have been developed. In the “Dragon” series, the “Sea Dragon” stack-type POS, the “Sincere Dragon” split-type POS and the “Smart Dragon” integration-type POS are highly favored by the customers. The Products structure of HICEC combines low, medium and high end marketing and can meet the needs of all facets of the POS community.

As a member of the State tax control standard drafting team, HICEC actively involves itself in the formulation, testing and piloting of relevant state standards for tax-controlled devices. So far, HICEC has developed the “Kirin” products series (including tax-controlled POS, tax-controlled network POS, tax-controlled invoice printer, tax-controlled storage) and contributes to the information-based administration of the State taxation system.

In 1997, “Hisense POS” series was appraised by Ministry of Science and Technology as a key “National Product”. In 2004, Hisense HK-H50G was listed as a key R&D project of the national Torch Project 2004.

HICEC boasts automated product lines and complete sets of automated production and testing equipment (e.g. surface mounting machine and automatic insertion on-line testing instruments imported from Germany and the USA) The facility is located in the 1,200mu (800,400m2) Hisense Information Industrial Park, which constitutes a powerful production capacity for various high quality commercial POS, tax-controlled POS and professional peripheral equipment.

HICEC boasts very competitive R&D strength and has undertaken many R&D projects in “Plan 863”, “Torch Plan” and the “9th Five-Year Plan”. Moreover, the company established close cooperation with famous research institutes at home and abroad to continuously consolidate and perfect its product lines so that those products can pass the testing of the ever-changing commercial equipment market and maintain their technological leadership in the domestic market.

Presently, HICEC has established 8 marketing branches in Shandong, northeast China, north China, northwest China, central China, south China and southwest China; 16 secondary offices and has contracted nearly 100 experienced distributors, which form a marketing network nationwide. At the same time, HICEC controls a nationwide service network composed of service centers in 20 major cities around China. HICEC’s knowledgeable and experienced marketing team can deliver the optimized products solutions and seamless service to its customers.

Hisense ( Beijing ) Digital Technology

Hisense (Beijing) Digital Technology Co., Ltd. was registered in Beijing in August 2000. It is high-tech wing of the Hisense Group. The company is committed to the product development and market exploration of the high-tech communications field. The company’s major products include network security products consisting of firewalls, invasion detecting systems (IDS), VPNs and network security ID verification systems (NetKey). In addition, the company is also able to delivery complete network security solutions and professional security services.

The company is backed by the Hisense Group; a leader in many facets of China’s electronics industry. HDTC’s strength in technology and products is attributable to its 6 professional labs providing system integration, R&D and network security. The company has introduced cutting-edge R&D and testing instruments including Smartbits 6000B, logic analyzers, network testing instruments, etc , which constitute a sound foundation of products. At the beginning of 2003, Hisense Group invested RMB 300 million to establish Hisense R&D. The R&D center covers an area over 5,000 square meters. The facility has received State-level technical center certification and is approved as a postdoctoral workstation. The R&D center is part of the Hisense 3C industrial pattern and undertakes such important tasks as industrial upgrading and product structural adjustment.

The network security products of HNTC have passed the rigid certification of the China National Information Security Evaluation & Testing Certification Center and certification of the Information Security Evaluation & Certification Center of the PLA, China. In addition it has secured a marketing license issued by the Public Information Network Security Supervision Bureau (PINSSB) of the Ministry of Public Security and was appraised by the National Administration for Protection of State Secrets. The FW3010 firewall was the first domestic product qualifying for security technology appraisal of 26 items in 5 categories and won second prize for scientific and technological advancement in the Shandong province. The anti-invasion capability of the firewall was outstanding and received the excellent technology award for firewall products organized by the CCID in 2001 and 2002. In March 2002, Hisense FW3010 firewall software passed the appraisal certification conducted by the National Administration for Protection of State Secrets (NAPSS) and was recognized by Shandong Provincial Department of Science and Technology as reaching an internationally-leading level. Hisense invasion detecting system also passed certification of the PINSSB and won the “Technical Innovation Award” conferred by CCID. This software was the security guard for the website of the “21st World University Games”. On September 30, 2002, HNTC passed ISO9001:2000 quality management system certification. In January 2003, NAPSS issued the “Secret-related System Integration Qualification” certificate to HNTC. All those honors and certifications are recognition of Hisense products and services quality.

HNTC boasts a powerful R&D team and has rich experience in developing low, medium and high-end security products to meet customers’ changing needs. The R&D team is mainly composed of doctoral, master-level computer network specialists that graduated from renowned universities at home and abroad. Presently, the company employs a staff of 170, 80 plus are R&D workers and 30 provide technical support. The company is known for providing complete, fast and considerate technical support and security service to its customers.

The past several years have seen HNTC grow into a world class operation. With its ever expanding scale and the enriched product line, HNTC is developing from a network security products supplier to a well-known “Network Security Expert” in China. With the strong support of the Hisense Group, the company will further display its technical strength, market advantage, superior service and competitiveness in the field of network security.

Hisense Network Technology

Hisense Network Technology Co., Ltd. (HNTC) was established in 1998 as a subsidiary of the Hisense Group and is the backbone of the Hisense 3C industrial information technology sector.

HNTC is the leading software provider in Shandong province; a State-level high-tech enterprise and a software base involved in the “Torch Plan” formulated by the Ministry of Science and Technology. HNTC possesses a Class II computer information system integration qualification granted by the Ministry of Information Industry and has passed ISO9001:2000 quality system and CMM3 certification.

Based on the concept of “High Tech, High Quality and Excellent Service”, HNTC formulated its 3i (internet, intelligence, and interactive) technological strategy. HNTC has established its industrial pattern based on the two major businesses of intelligent traffic and commercial circulation.

Concerning the intelligent traffic business, HNTC has developed a series of products including public transport intelligent dispatching and media operation and management systems; urban public security & traffic control center comprehensive information systems; self-adaptive traffic light control system; and e-police & mobile vehicle checking systems. These products are currently being used by many municipalities in China including: Qingdao, Beijing, Shanghai, Shenzhen, Shenyang, Zhongshan, Liuzhou and Hohhot.

In the commercial mapping and navigation field, HNTC has successfully developed such products as the “Commercial Navigation”, “Commercial Maneuver” and “Commercial Decision-maker”, which has been installed in more than 200 large circulation enterprises, groups and over 5,000 small and medium businesses. The applications cover various circulation industries and management modes including shopping centers, department stores, warehouse-type supermarkets, fresh food supermarkets, distribution centers, convenience stores, franchised stores, chain stores and small and medium grocery stores.

Realizing that technology is the root of development, HNTC spares no efforts to promote and apply new technologies. It has established broad cooperation with the Chinese Academy of Science, Tsinghua University, Peking University, Jilin University, Shandong University and many research institutes and has absorbed and adapted many state-level R&D projects. Some of the projects are included in the State Plan 863, a sci-tech program of the 10th Five-Year Plan and a promotion program of the State technology Bureau.

HNTC has established a nationwide marketing and service network. Based on the customer-oriented marketing concept, HNTC strives to provide complete customer service to exceed the customers’ requirements.

Hisense Mobile Communication Technology

Hisense Mobile Communication Technology Co., Ltd. (HMCTC) was previously known as the Hisense Communication Research Center and was established in June, 2000. After 5 years of research and development, HMCTC has perfected the mobile communication standard system terminals. (CDMA, GSM, WCDMA, TD-SCDMA). HMCTC boasts a specialized and highly-talented R&D team, recognized as the pioneer in China’s handset design. HMCTC has reached the pinnacle in the development of mobile communication terminal products in China.

The company has grasped the technology of mobile communication terminal products and is well experienced in many projects sponsored by the state and Ministry of Information Industry. Today, HMCTC is able to deliver its customers technical solutions and products (e.g. communication modules and cordless telephones) based on the mobile communication terminal.

HMCTC has a complete quality control system. The system includes a sound testing and development environment and an excellent products design control and quality guarantee process, which provides complete satisfaction to its customer base.

HMCTC’s philosophy is “To Operate Business with Technology and Quality, To Serve the Customers with Sincerity and To Repay the Society with Knowledge and To Meet the Market Demand”.

Hisense Communication

Hisense Communication Co., Ltd. (HCC) is a subsidiary of the Hisense Company Limited and was registered on May 10, 2001. As a pivotal player of the 3C industrial pattern designed by Hisense Group, HCC is committed to the R&D, production, marketing and service of mobile communication products and endeavors to provide its customers with products and services of the highest technology, and highest quality.

HCC has been an innovator in China’s communication revolution. Independently developing China’s first CDMA color display handset in 2001; launching China’s first CDMA 2000 1X “e-color” handset with 310,000-pixels and built-in camera; and participating in the TD-SCDMA industrial alliance as an initiator of China’s first mobile communication terminal manufacturer passing 3G terminal testing conducted by the Ministry of Information Industry. HCC has over three years of rich experience as an independent R&D and manufacturer of quality communications equipment. Presently, HCC has launched 10 plus products into the market. Based on an excellent design and strict quality control, Hisense CDMA handsets are widely appreciated by consumers for its consistent quality; complete features and personalized operation mode.

On September 1, 2003, the handsets distinguished themselves during a comprehensive evaluation and was awarded the title, “famous China brands”. This title was again awarded to HCC In November of the same year, Hisense handsets are ranked No. 1 in customer satisfaction indexes of famous Chinese brands in a survey conducted by the General Administration of Quality Supervision, Inspection and Quarantine a government supervised organization.

As a high-tech enterprise in Qingdao, HCC boasts a high quality R&D team composed of advanced degreed engineers and other technical experts specializing in communication equipment. HCC invested several hundreds of million RMB and established a new communication technology R&D center; an advanced production center and quality control center. Annual production capacity of HCC has reached 3 million units. On August 2002, HCC passed ISO9001 quality system certification.

HCC spares no effort to implement the service policy of Hisense Group in the communication industry. HCC established 24 subsidiaries and more than 5,000 outlets nationwide. HCC’s marketing network covers all large and medium cities in China. In addition, HCC established 25 customer consultation centers, a 24-hour response nationwide customer service network; 1,000 plus licensed service stations and numerous HCC service shops. These business outlets are able to provide hand-on care and all-inclusive services to the vast customer base.

HCC will continue to maintain an independent R&D effort and strives to be the leader in China’s communication industry and a major communication products supplier to the world. HCC endeavors to contribute to the prosperity of the national communication industry.