Ultimately, Hisense will adopt a dual-branding strategy and build up the Hisense brand by leveraging Kelon's strengths in white goods such as refrigerators and air-conditioners. But insiders are quick to point out that so far there is no precedent of a successfully executed dual-branding strategy: similar acquisitions in the past all ended in building up of the acquirers' brand at the expense of the acquired brands.

If Yu succeeds in bringing the needed changes, Hisense will stand to gain enormously. "Its brand name and marketing channels are particularly attractive to potential buyers, especially in the electrical appliance industry, where competition is red hot," says Dong Chen, an analyst with China Securities.

Kelon is a household name and has quality assets, while Hisense desires to make a breakthrough in refrigerator and air-conditioner manufacturing. Hisense had started out as a maker of black goods such as TV sets, but is turning its attention more and more to white-goods. Just as important, as a Shandong-based company, Hisense's takeover over of Kelon could strengthen its presence in South China.

A female corporate leader is rare, particularly in Shandong where traditional culture tends to stress distinct gender roles. Yu has worked her way up from mechanic to senior management, joining Hisense in 1996. Since Yu took over the Hisense management in 2000, it has seen robust growth. Annual sales have jumped from 10.7 billion (US$1.3 billion) to 22.1 billion (US$2.7 billion).

"I like to simplify problems, and prefer to keep personal feelings out of considerations. Typically I think less of human feelings and relations," Yu has said of her management style. 

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