Haier Group's overseas profitability has not yet reached the point where the company can be considered an international brand, the president of the nation's largest home appliance maker said.

Haier's overseas sales hit US$4 billion in 2005, Yang Mianmian said yesterday, but profits from overseas sales fall short of making up her target of one-third of the company's profits.

In an animated speech to Qingdao delegates to the country's annual session of the National People's Congress, Yang said Chinese companies must be worth US$1 billion, must earn at least one-fifth of their revenues overseas and at least one-third of their profits abroad before they can be considered an international brand.

"We have reached the target for overseas sales, but I am afraid we still fall short on profit," Yang told reporters.

"We are focusing our efforts on overseas returns."

The company expects "double-digit" overseas profit growth in 2006, Yang said.

Total sales hit US$13 billion in 2005, she said, but overseas profit was very small.

The government is urging domestic companies to become recognized brands, rather than simply the lowest cost producers, in order to boost the profits and reputation of China companies.

Haier, whose mini-fridges are strong sellers in the United States, made a bid last year to buy U.S. appliance giant Maytag Corp., but dropped out when bidders with deeper pockets entered the race.

Haier is still considering foreign deals, Yang said, but refused to discuss exact plans or targets.

"In the future, we have to see how the brand develops. We are considering a lot of options and will take the appropriate one at the right time."

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