) refrigerator. But for a Chinese family the situation is different. One brand cannot meet all the demands of the Chinese market.At Kelon, our Kelon-branded refrigerators cost $1.80 per liter, similar to Siemens, while our Ronshen brand costs about $1.30 per liter. Finally our Combine brand is less than $1 per liter. No one can compete with us in offering such a low price. If other refrigerator manufacturers were to sell their refrigerator for such a cheap price, they would have no profit. But we are still profitable.Q: What are the biggest challenges you face in doing business and in developing your brand in China?A: Because we have three brands in both refrigerators and air conditioners, our biggest challenge is very large-scale production. For example, this year our goal is to sell 10 million refrigerators, but if we can only sell 3 million refrigerators, our efficiency and cost will be much lower than those companies who only have one brand but also sell 3 million refrigerators. We have three assembly lines, and we have to advertise for all three brands.Q: What do you see as the biggest challenges for Chinese brands going overseas?A: One big issue is that "Made-in-China" doesn't represent high quality. Even though our products are of very good quality, in overseas markets people aren't familiar with our brand. China still needs time to let people begin to know it can make quality products.To change people's perceptions of products made in China, requires effort by all Chinese companies. Kelon alone cannot change that. So I hope that all Chinese companies begin to produce high-quality products and don't make fake and bad products that destroy the reputation of all China brands. But this needs time.Now our overseas sales revenue is only $500 million, just a very small part of our total. We don't have our own brand in the overseas market, but we manufacture other brands to sell in the international market.Q: What are your revenues, advertising budget, and R&D expenditures? A: Our advertising budget in the domestic market is about 5% of our total sales revenue. And in overseas markets we don't advertise [because] we don't have our own brands.R&D is about 2% or 3% of our total revenue. Kelon's refrigerator technology is very good. In a recent technology contest, we beat Siemens. For the same size refrigerator, Siemens consumed more energy than a Kelon refrigerator.Q: What about revenues?A: Our revenues and profits have been increasing very fast in recent years. Last year our total sales revenue reached $4 billion, with a growth rate of over 30%. Our overseas sales revenue doubled in 2002 and [again] in 2003. In 2001, our overseas revenue was only $60 million, in 2002 it was $120 million, and in 2003 reached $230 million. And this year we plan to reach $500 million.