Two Shenzhen companies received this year's Mayor Quality Award and a 3-million-yuan (US$375,000) check each from Mayor Xu Zongheng yesterday.

Electronics giants Konka Group and Skyworth Digital Group were named winners of the city's third Mayor Quality Award, selected from a shortlist of 12 Shenzhen companies. At the awards ceremony held at the Citizens' Center, the municipal government also awarded 19 Shenzhen companies 23 million yuan for being selected as famous brands last month.

The annual national honor roll issued by the State quality watchdog General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) is categorized into internationally prestigious brands, nationally prestigious brands and well-known brands.

Of the 19 companies honored, Huawei and ZTE received 3 million yuan each at the ceremony for being named as the country's internationally prestigious brands.

ZTE and Skyworth received another 1 million yuan each from the government for being on the list of the nationally prestigious brands.

Seven of the 19 companies on the national award list are jewelry manufacturers, two are beverage producers, and two others furniture makers.

Hou Songrong, Konka's chairman, said the Mayor award will have a far-reaching effect for the company.

"We learn from our experience that it's difficult to beat your competitors merely with low price but cheesy products nowadays. Instead, quality is key for our strategy," he said, believing the country could go beyond being the world's factory.

Mayor Xu said the award means far more than handing out cash. "The government expects an increasing number of local brands will take the Mayor's Quality Award as their targets and standards. We hope that local manufacturers' pursuit for high quality standards will help transform the city's economy from being 'speed-oriented' to 'efficiency-oriented,'" he said.

With the addition of 15 more Shenzhen-based brands, the number of national prestigious brands in Shenzhen has reached 58, the highest in the country, with Shanghai and Qingdao following with 56 and 55 respectively.

Last year, the 122 billion yuan output from the city's national prestigious brands accounted for 12.4 percent of the city's total industrial output, and contributed 25 percent of the local tax revenue.

The city started its strategy of developing locally-made brands in 1995 and launched its annual Mayor Quality Award in 2004, the first in the country. Huawei, ZTE, China Merchants Bank and Pavilion Hotel have won the Mayor's Quality Award in the past two years.

A spokesman for the municipal government said that more than 68.7 million yuan had been awarded to local prestigious brands by the end of 2005.

Editor: Yan