TCL Corporation hosts its first-ever Technology Innovation Conference

TCL Corporation hosts its first-ever Technology Innovation Conference

July 01st,2004

(June 28, 2004 - Huizhou, China) The first-ever TCL Technology Innovation Conference was held at the Jiangbei Conference Center, Huizhou on Monday. Government officials from Guangdong Province and Huizhou Municipality attended the event together with nearly one thousand TCL R&D professionals. At the conference, TCL honored its outstanding scientists and technicians with cash prizes totaling RMB two million and announced the hiring of 10 academicians and over 20 well-known Chinese experts as TCL senior technology consultants.

Two R&D projects, the "Mobile Terminals Based on ADI Telecommunication Chips and TTPCOM Communication Protocol" and "Production Technique for the Rapid Production of TV Sets and Product Design Technology " were recognized during the conference. The scientists and technicians responsible for the projects were awarded the "2004 TCL Technology Innovation Prize" and a cash prize of RMB one million each. This marks the first time a Chinese enterprise has honored its R&D professionals with such a large sum of money.

Mr. Zheng Chuanlie, senior vice president of TCL, announced at the conference the hiring of a number of academicians and experts, including China most renowned technology economy, telecommunications, audio/video, information and mechanical specialists as TCL senior technology consultants. Those hired were Sun Yu, Ruan Xueyu, Zhang Jingzhong, Liu Songhao, Zhang Guangyi, Su Junhong, Qian Qingquan, Li Tongbao, Xu Junyan and Li Guojie, as well as 32 experts from research institutes and various industries, such as Chen Xuedao, Chen Xin and Luo Wen.

For the past few decades, Chinese enterprises have struggled to compete with multinationals due to a lack of core technologies. With the rapid progress of economic globalization, China continues to face a great challenge posed by MNCs whose technology is protected by IPRs, while China continues to rely on the low cost of its labor force.

As early as the 1990s, TCL, aiming to build a world-class enterprise, already had anticipated this potential challenge and began to take necessary measures through the development of a methodology of reversed scientific and technological innovation. Specifically, TCL first integrated existing technology into its products, and then developed its own technology, beginning with peripheral technology and then moving into core technology to ensure continued development.

Through these efforts, TCL has successfully introduced a number of scientific and technological innovation initiatives. Professor Chen Xin, team leader of experts leading the information improvement of manufacturing industries in Guangdong Province and vice president of Guangdong University of Technology, said, "I am very impressed with TCL scientific and technological innovation project, which has demonstrated to Chinese enterprises how to best develop core technologies.

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Tomson Li, chairman and president of TCL, delivered the closing speech on TCL technology innovation. According to Mr. Li, compared with world-class enterprises, TCL still has a long way to go in terms of technology innovation. In order to ensure continued development, TCL has established a technology committee to develop its technology innovation efforts.

The committee will be responsible for coordination, management, the integration of R&D resources, and drawing on the advantages relating to its presence in the 3C industries for R&D projects. Tomson Li also stressed that TCL will increase its R&D investment. All TCL subsidiaries will increase their R&D investment by no less than the rate of growth of their sales revenue during the same period.

Future R&D investments will account for 7 to 10 percent of subsidiariessales revenue, 3 to 5 percent higher than current levels. The size of TCL R&D staff also will be increased dramatically. The company expects to make breakthroughs in some of its core technologies.

TCL has achieved significant results in recent years through its R&D initiatives. In 2003 alone, TCL developed 110 new products, three that compete globally and 43 of which lead the domestic market. The value of new products accounted for 78% of TCL gross output value in 2003. In addition, TCL will develop 24 R&D projects at the state level and 78 at the provincial level.

TCL has won recognition at the provincial level and from relevant ministries for its 80 R&D projects. TCL is the first enterprise in Huizhou to be honored with both a special award and first prize at the Guangdong Province Science and Technology Awards and Guangdong Province "Chinese Excellent Patent Award? and "Gold Patent Award?.

Furthermore, TCL has made breakthroughs in 15 of its core technologies, including PDP Driving and Control Technology. The breakthroughs affect TCL electronics, telecommunications, household electronic appliances, electrical and battery businesses, and lead the domestic market. In fact, some of these core technologies are able to compete globally, laying a solid foundation for TCL long-term growth.

The Guangdong Provincial Government earlier this year presented TCL with a special prize at the Guangdong Province Science and Technology Awards and Guangdong Province "Gold Patent Award". During TCL Technology Innovation Conference, officials with the Department of Science and Technology of Guangdong Province and the Intellectual Property Office of Guangdong Province presented TCL with the medals for the awards.

Guangdong Provincial officials made positive remarks about TCL scientific and technological innovation project and encouraged TCL R&D professionals to contribute to the goal of the development of Guangdong through science and technology.

According to industry experts, TCL, a leader in science and technology in China, has inspired its R&D professionals to innovate by honoring them with such generous cash prizes. In addition, through the hiring of 10 academicians, TCL can take advantage of external resources in science and technology, improve its prospects for technology innovation and strengthen the process it uses to select R&D projects for development.