Xiong Qunli, president of China Electronics Corporation, has told Chinese media that CEC will conduct a major business restructuring and adjustment in the coming three years and reduce the number of its subsidiaries by 50%, which is about 400, within the year.
According to Xiong, CEC has already eliminated more than 90 companies and it has set a development strategy of "3+1", which consists of integrated circuits, core appliances, software and systems integration of electronics and related military electronics products as well as 3C products (mobile communications and home appliances). Xiong says that all of the company's future business adjustments will be done centering on these four services.
Xiong says that CEC will gradually withdraw from those minor, non-profitable services by combining them with the major businesses, compressing them with businesses of the same kind or selling them.
At present, CEC has 13 listed companies and more than 700 non-listed companies, which includes Amoi, Nanjing Panda and ChinaSoft. Despite this big scale, CEC's performance has not been satisfactory in recent years. Its listed subsidiaries like Amoi and Panda have suffered great losses.