manufacturing pendulum clocks and alarm clocks, and developed many new products such as marine clock 、 calendar pendulum clock 、 pocket watch 、 wristwatch 、 quartz clock. But it's not easy to develop greatly due to the limitations of production scale and organization system, the leader had always tried to expand the business, but was blocked by “Institutional Revolution”. When “Institutional Revolution” began, the brand “ Bao ” was suspended. In 1972, Yantai Timepiece Factory was turned over to the jurisdiction of Yantai light industry bureau.

In the beginning of 1975, approved by Yantai leadership, high-specialized production was implemented — based on every branches of Yantai Timepiece Factory, organize timber clock factory 、 alarm clock factory 、 wristwatch factory 、 timepiece mould factory and other production factories. Some other factories were organized after that, including timepiece component factory 、 watchcase factory 、 gem factory 、 Horology Research Institute 、 timepiece material factory 、 timepiece glass factory 、 horology mechanic school , they were under the jurisdiction of Yantai light industry bureau. In 1978, Yantai Timepiece Industry Company was established; 17 timepiece industry companies were under its jurisdiction . In 1984, Yantai Timepiece Industry Company was upgraded to municipal bureau level. Yantai timepiece industry experienced high-specialized production and entered into a rapidly developing period along with the opening and reform of China. In 1979, “Polaris” pendulum clock won uppermost prize of horologe--silver medal in the first nationwide product quality appraise through comparison, and gained it four years later. To meet the needs for famous products, timber clock factory and alarm clock factory have assigned over fifty Village & &Towns enterprises to manufacture some components since the end of the seventh decade of last century; there were nearly 10000 employees. At the same time, timber clock factory cooperated with companies in Weihai and Jinli to manufacture “Polaris” pendulum clocks. The annual production capacity of pendulum clocks is 1,530,000 pieces, ten times of that in 1974; the annual production capacity of alarm clocks is 1,400,000 pieces, 2.6 times of that in 1974; the annual production capacity of wristwatches is 900,000 pieces, zero in 1974. Yantai timepiece industry specialized in quartz clock, promoted large-scale technology reform and began to manufacture quartz clock.

In April 1984, Yantai Municipal Government authorized the enterprises under the jurisdiction of Yantai Timepiece Industry Company to organize Yantai Polaris Timepiece (group) Corporation, then Yantai Timepiece Industry Company was repealed, the group corporation is the first legal entity, each subsidiary own its corporation qualification. The group's key enterprises included: Yantai T imber Clock Factory 、 Yantai Alarm Clock Factory 、 Yantai W ristwatch F actory 、 Yantai J ewel Bearing F actory 、 Yantai Timepiece C omponent F actory 、 Yantai Timepiece Material Factory 、 Yantai Timepiece Mould Factory 、 Yantai Gem Factory 、 Yantai W atchcase F actory 、 Yantai Timepiece Glass F actory 、 Yantai H orology Research Institute and Yantai Horology Mechanic School. The group corporation carried out unified marketing, devoted a great deal into broadening both domestic and overseas markets and publicizing "Polaris" brand, "Polaris" series timepieces formed a sales network in many places in China, its sales volumes and market occupancy rate ranked the first place for a time. In 1988, the group company realized the sales income of 370 million RMB Yuan, tax of 52.8 million RMB Yuan. But later, because of some limitation in the interior system, it got harder and harder for the company to accommodate itself to market competition, and eventually it had to stop unified marketing in 1990.

In the end of the eighth decade in last century, as overseas timepiece industry flooded into China and non-public owned system for timepiece industry grew up in China, market competition became tougher than ever. The group companies tried to improved the appearance of timber-case clock, added design and colors, developed kinds of special clocks and technical clocks, expanded international trade, and got remarkable effect. "Polaris" brand was appraised one of 10 well known brands of China in 1991. In the same year, the group obtained self-operation import and export right. But due to many inferior positions such as excessive personnel 、 heavy burden, each companies confronted efficiency 、 the lack of fund 、 overstock. In 1992, the group began to lose its profit, and declined year by year.

From 1996, the group adopted many measures to change the bad situation with the guidance and help of the Municipal Government: separate the assets and debts to recombine them; declare bankruptcy for some companies whose assets could not match its debt; make timepiece material factory incorporated into nonferrous metals group; attorn some small factories in the interior. In 1999, Yantai Alarm Clock Factory was ranked as bankrupt company under the national policy of optimizing capital configuration experimental unit. In the same year, Yantai timber clock factory changed its system to be stock company and changed its name to be Yantai Polaris Baoshi Co., Ltd.

2•  Build rules and systems to standardize management. On January 1, 2003, 《 Yantai Polaris Brand Management Measures (probation) 》 、 《 Product Quality Management Provision 》 、 《 Anti-fake Identification Usage Provision 》 、 《 ”Polaris” Brand 、 Trade Name License Charge Provision 》 are brought into effect formally.

3•  Strengthen interior management, increase efficiency. After foundation, the holding company assigned financial directors to general timepiece factory 、 zhougou watch industry 、 research institute 、 gift company 、 zhongxin mechanical 、 I.K mould 、 ronghua timepiece 、 sipu quartz clock by means of central training 、 open competition and enrolling only those who are outstanding, it established effective financial risk liability system and harmonious 、 unblocked information network channel.

4•  Capital and brand operation obtain good results. The holding company unified the employment of brand and business firm, which not only standardizes interior employment, but also attract external companies to join. The first eight companies obtained brand 、 business firm paid licensed employment certificate in 2003, which indicates that the employment of Polaris brand 、 business firm entered contract management age.

5•  Emphasize enterprise culture establishment. Zhongxin attaches much importance to knowledge accumulation, staff members assemble to study management experience of advanced companies on Saturday mornings, it is a virtuous circle of studying promoting working and working in turn promoting studying. The head office also organize the staff to watch video about advanced management experience of famous companies, and adopt various studying methods to improve their own abilities increasingly, this accumulates much experience for “Polaris” to build a studying type organization. The company cooperated with Yantai Art School to set up Polaris Youth Art Group, it is the first try to associate with school, it helps to make socialistic culture market more prosperous and make companies' culture life more colorful.

6•  Pay more attention to marketing group building, seek after new marketing modes. In order to accommodate to China 's entering into WTO, the company retained professors in universities and scholars to instruct marketing knowledge for the marketers, help them to analyze the market, modify marketing policies. The company set up Polaris web site, it utilizes a flexible way to manage Polaris series products 、 information about the company and other datum, and it establishes Polaris electronic commerce system by issuing information through internet 、 signing contracts through internet 、 striking a bargain through internet, establishes a stable base for future development. In 2002, with the mutual efforts made by import and export company 、 baoshi company and other companies, the export delivery reached seventeen million two hundred eighty thousand dollars, an increase of 31 percent to that of the corresponding period, realized self-support export volume of thirteen million seven hundred thirty thousand dollars, an increase of 25 percent to that of the corresponding period, reached its highest level in its history.

7•  Actualize talent-promoting policy, pay attention to management innovation and technology innovation. The company broke equalitarianism in distribution, the company provided to its subsidiaries 《 P robation Ideas About Promoting Post Salary 》 , adopted fair contribution according to work 、 salary 、 knowledge and working efficiency, which activates greatly the enthusiasm of technicians and administrators for working, optimizes the circumstances to attract talent persons. All the persons are satisfied then.

8•  Promote reform and transformation stably. The general guideline for reform is “proper advance and orderly retreat”, according to different conditions of different companies, they adopted different reform methods. In 2002, all of the state-owned shares retreated from Polaris Baoshi Company.

YANTAI POLARIS STATE-HOLDING CO.,LTD. further opens the mind and rouses themselves, focuses on development, creates better future in the new century.

June 12, 2003 Office

Next