Transparency drive could fail without better governance at scandal-hit firm
'Encourage innovation, forgive failures, reject mediocrity', urges a sign hanging in one of Guangdong Kelon Electrical Holdings factories in its hometown Shunde in Guangdong province.
The Chinese government and shareholders may have forgiven China's largest refrigerator maker for two financial scandals that have rocked the firm in the past five years, but several former executives, including chairman Gu Chujun, could not avoid arrest in connection with a fraud investigation earlier this year.
The Hong Kong and Shenzhen-listed firm went all out to put its troubles behind it in a ceremony on Monday marking its takeover from Mr Gu by Qingdao Hisense Air-Conditioner. Amid much fanfare, roads in Shunde - where the firm employs more than 20,000 people - were festooned with pennants bearing its logo.
Under an auspicious red banner proclaiming 'A New Kelon', new president Tang Yeguo was upbeat at the ceremony. 'Production is recovering. Orders are coming back. Kelon's operating environment has turned around with support from the State Council, the Guangdong government and Shunde government,' Mr Tang said.
Indeed, the substantial presence of mainland media was a sign Hisense's acquisition of Kelon was blessed at the highest levels of the government. After all, its parent firm, Hisense Group, is a large state-owned group under the indirect control of the State Council.
Outlining Kelon's new strategy, Mr Tang, a former Hisense Air-Conditioner executive, declared: 'Financial health is more important than profits, and profits are more important than growth.'
