The domestically-listed Sichuan Changhong Electric Co., Ltd., a leading TV manufacturer in China, started a production facility in Czech Republic Wednesday, company sources confirmed on Thursday.

The project is the first overseas production base wholly owned by a Chinese home electrical appliance enterprise.

The project cost 10 million U.S. dollars, involving a total workshop space of 10,000 square meters and a designed annual production capacity of one million sets. Most of the products will be flat-panel and high-definition TV sets.

The company sources revealed when conditions are ready, the project would be expanded to produce air conditioners, refrigerators, cell phones and set-top boxes, so as to localize all Changhong products in Europe.

Changhong has launched production projects in Indonesia, Australia, Czech Republic and the Republic of Korea, and business outlets in more than one dozen countries and regions, including the United States, France and Russia.

Changhong is striving to make overseas sales account for 30-50 percent of its total sales income by 2010.

Last year, Changhong realized a record 18.8 billion yuan (2.4 billion U.S. dollars) in main operating turnover, up 24.5 percent from the year-earlier level. About 50 percent of the total came from color TV business, according to the company's annual report.

The annual report also said Changhong's net profits grew 7.32 percent to 305.9 million yuan (39.7 million U.S.dollars) in 2006, with earnings per share at 0.161 yuan, up 21.97 percent. Its return on net assets stood at 3.41 percent, up 0.5 percentage points.

By the end of 2006, Changhong's gross assets amounted to 16.6 billion yuan (2.2 billion U.S. dollars), up 5.06 percent year-on-year, according to the annual report.

With its parent company founded in 1958, Changhong had its brand value rise to 43.8 billion yuan (5.7 billion U.S. dollars) last year, up 9.8 percent, company sources said.

Source: Xinhua