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www.midea.com Midea Advances Newsletter, May, 2013

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VOL 3, #4, May 2013, No. 28

6σ: 99.99966%

Midea launches company-wide Six Sigma training


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ADVANCES Newsletter

Contents

NEWSLINE

Midea Group to Issue A-

Shares for Exchange with GD

Midea Shareholders PAGE 4

CMI Hosts Visit to VRF Facto-

ry in China PAGE 3

Midea Advances Newsletter is published monthly

by the International Strategy Department of

Midea Group. We welcome all comments,

suggestions and contribution of articles, as well as

requests for subscription to our newsletter. You

can reach us by email at: [email protected]

Address:

ADVANCES, International Strategy Department

Midea HQ

No. 6 Midea Road

Beijiao, Shunde, Foshan, Guangdong

P.R.C. 528311

Tel: +86-757-2360 4714

Web: www.midea.com

Managing Editors:

Matthew Smith

Mandy Wang

Regular Correspondents:

Himani Joshi

Amber Liu

Crystal Lun

Blinda Li

Tony Miao

Peck Zhao

Sandra Sun

James Yu

Daniel Zhang

Sue Ou

Exclusive Channel Annual

Meeting in Brazil PAGE 6

Carrier Midea India Brings

Cool to ACREX PAGE 5

Six Sigma: Laundry Division

Completes Phase I of Black

Belt Training PAGE 8

CMI Introduces “Sparsh” PAGE 5

CAC New Product Promotion

Tour Hits 33 Cities Across Chi-

na PAGE 10

Adeus E Até Breve

PAGE 15-16

PAGE 18

Brazil JV Scores Football

Sponsorship PAGE 4

Dealers from Argentina Visit

Midea HQ PAGE 6

Laundry Division Introduces

Market Camp PAGE 7

Midea CAC Participates In

UAE Certification Standards

Development PAGE 7

Midea Only Appliances

Manufacturer in Top-10 Na-

tional Innovation Ranking PAGE 9

Midea Laundry Division

Launches “Washing Revolu-

tion” With Cross-China Tour PAGE 11

Midea Carrier Brazil Launch-

es Campaign for Mother's

Day PAGE 12

Midea Eco Air Conditioners

Pass National CQC Software

Appraisal PAGE 12

Midea Donates 10 Million

RMB to Ya’an Quake Relief,

Employee Donations to Fol-

low PAGE 17

FEATURE

PEOPLE

COMMUNITY

SNAPSHOT


CAC’s 18th Global Technical

Training Seminar PAGE 14

Myanmar’s Dealer Visit to

Midea HQ PAGE 13


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CMI Hosts Visit to VRF Factory in China

C arrier Midea India (CMI) recently organised a visit to

Midea‟s VRF factory in Shunde, China. The visit included 10

leading HVAC consult-

ants, who specialize in

various applications like

hospitality, residence

and manufacturing.

Sanjay Mahajan, Vice

President of Sales &

Marketing at CMI, was

present at the occasion,

along with other key

company officials from

both CMI & Midea‟s

International Division.

Commenting on

the occasion, Mahajan

said, “The principal

strength of Midea lies in

its world-class product

quality and testing facilities. We work very closely with our con-

sultants and hence it was essential for us to familiarise them

with the Midea brand. We have received very encouraging feed-

back and look forward to receiving great support from everyone

as our business progresses.”

To engage the interests of the HVAC consultants, the

company organised a

three-day visit to Shun-

de, with an in-depth

and informative guided

tour of its light com-

mercial air conditioner

factory. The itinerary

included a visit to the

Midea museum, its

manufacturing lines,

testing and R&D cen-

tres followed by tech-

nical and product

presentations. The

guests appeared quite

impressed with the

manufacturing exper-

tise and sheer scale of

operations, which no doubt helped in creating a stronger, more

positive image of the Midea brand.

T he May Day holiday earlier this month typically

marks the beginning of the most competitive period in China‟s

home appliance market each year, and this time was no excep-

tion. Air conditioner sales in particular will spike when the

weather begins turning hot. Leading the way in this fierce com-

petition is the Midea Eco range of air conditioners, featuring

their 1 kWh per night efficiency, which has attracted lots of

attention in the market.

“Every customer dropping by is very interested in Midea

split range of 1 kWh per night units,” said a sales representative

in a local shopping mall. Statistics show that during the May

Day holiday, inverter-type air conditioners accounted for nearly

RAC’s 1 kWh/Night Units See Strong Sales

Over May Day Holiday By Crystal Lun

NEWSLINE

By Himani Joshi

70% of Midea‟s total sales in air conditioners in the China mar-

ket, and the full-DC inverters with the 1 kWh per night feature

made up half of all inverter unit sales.

To sustain its leading position in the market, Midea RAC

has made efforts with strategic transformation, research & de-

velopment, and quality enhancement. The 1 kWh/night feature

was first launched in October 2012, representing Midea‟s deter-

mination for creating excellent value for consumers.

Statistics by China Market Monitor show that Midea‟s new

range of 1 kWh per night units ranks as #1 in sales against all

other brands, and this momentum looks to continue beyond

May.


4

Midea Group to Issue A-Shares for

Exchange with GD Midea Shareholders

By Blinda Li

G D Midea Holding, the publicly-listed subsidiary of

Midea Group which manufactures air conditioners, refrigera-

tors, washing machines, and other major appliances, announced

on March 31st that Midea Group is intending to consolidate and

merge GD Midea Holding as part of its overall listing, by way of

issuing A-shares in exchange to GD Midea shareholders. The

plan is for Midea Group to make its offering price at 44.56

RMB per share. GD Midea Holding shareholders will receive a

stock-for-stock price of 15.96 RMB per share, taking the aver-

age trading price of 9.46 RMB per share on the day of an-

nouncement as the benchmark, resulting in a premium of

68.71% over the benchmark. Because it is a stock-for-stock

consolidation, every share of GD Midea Holding can be ex-

changed for 0.3582 shares of the new A-shares issued by Midea

Group.

As an A-share “blue chip” company, Midea has always

valued the interests of minority shareholders, offering cash divi-

dends annually since its listing. In 2011, it offered 4.5 RMB in

cash for every 10 shares, a total dividend up to 1.5 billion RMB,

and in 2012, it continued to increase dividends, offering 6 RMB

for every 10 shares, for a total of 2 billion RMB, a dividend yield

rate exceeding 6%. After the stock issue, Midea Group will con-

tinue its past tradition, by paying close attention to earnings and

returns for minority shareholders, and to continue to increase

the dividend payout ratio, with the annual cash dividend within

three years to be no less than 1/3 of the current year‟s allocable

profit. It is believed that the Midea Group share offering will be

well-received in the capital market.

Brazil JV Scores Football Sponsorship

guesa reinforces the marketing strategies of both Carrier and

Midea, which will be sponsors throughout the next season,

thereby increasing their visibility to the market. "The official

announcement of the new Portuguesa uniform was reported by

various media, such as Globo Esporte, The People, Official

Lance, IG Sports, among other important sports media outlets

in Brazil. This shows that our marketing strategies are in syner-

gy, aligned, and focused on demonstrating our company‟s grow-

ing excellence in the national media."

Midea and Carrier logos will also appear on tickets for

games in the stadium, panels on the field, and in the stands of

the stadium. "It's a great opportunity, because all of these rights

come with being the sponsors of the Portuguesa, which most

certainly generate a cycle of positive exposure," adds Mascaren-

has. The logos for Midea and Carrier will appear on the uniform

separately for half of the season.

T he Portuguese Association of Sports, a Brazilian

football team known more casually as “Portuguesa” or “Lusa”,

and based in São Paulo, inaugurated its new store earlier this

May, where it also presented uniforms for the new season. The

most remarkable aspect of the new shirt is the mark of its two

new sponsors announced at the time: STR and Midea Carrier

ABC JV.

"This action is associated with all the success that we are

seeing in our air conditioning projects relating to large stadiums

and arenas. After all, there is much reason to celebrate: Midea

Carrier ABC JV has already become the main choice for the

weatherizing stages in preparation for World Cup 2014,” said

Henrique Mascarenhas, Director of Marketing at Midea Carrier

Brazil. "Recently, the staff of Midea Carrier channel BSS

(Building System and Service) signed an agreement to provide

air conditioning equipment for construction of the Maracana

Arena, the latest in a series of work to represent the strength of

these two powerful brands across the entire country."

For Midea Carrier ABC JV, brand exposure with Portu-

By James Yu

NEWSLINE


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Carrier Midea India Brings Cool to ACREX

By Himani Joshi

C arrier Midea India (CMI) showcased its product port-

folio both for Carrier- and Midea-brand air conditioners at

ACREX 2013, South Asia‟s largest and most prestigious conven-

tion for each of the air conditioning, heating and refrigeration

industries. Each year it‟s held in a different location, and this

year ACREX was in Mumbai.

During the three day exhibition, CMI showcased its resi-

dential and

light com-

mercial

range of air

condition-

ers for the

season. The

Midea

lineup was

displayed in

full glory

along with

Carrier‟s own split- and window-style air conditioners.

“Over the years, this platform has evolved immensely,

providing good exposure to the participants and visitors,” ex-

pressed Sanjay Mahajan, Vice President of Sales and Marketing

for CMI. “We‟ve received such a positive response on our prod-

ucts and keen interest was even shown by architects and con-

sultants, who were curious to know more about the joint ven-

ture, and

Midea in

particular.”

The

theme of

the 14th

ACREX

was dedi-

cated to

promoting

a cleaner

environ-

ment and providing a platform for the presentation of the best

quality products, services and projects in the HVAC&R indus-

try, which aim at delivering functionality in an eco-friendly man-

ner. The event drew more than 450 exhibitors from 20 coun-

tries whose products and services were on display in the exhibi-

tion area at the Bombay Convention and Exhibition Centre in

Mumbai.

More than 40,000 visitors, comprised of exhibitors, part-

ners, HVAC consultants and engineering students, networked

amongst each other and learned more about coming technolo-

gies during this three-day event.

NEWSLINE

CMI Introduces “Sparsh”

By Himani Joshi

C arrier Midea India has just introduced a new quarterly

publication, officially known as “Sparsh”, which means “in

touch” in Hindi. Similar to Midea ADVANCES, Sparsh will

report on news and events in and out of India that relate to the

business of CMI.

With the start of an official publication at CMI, there will

be more opportunity for cooperation between Sparsh and AD-

VANCES, meaning greater coverage in the future of the most

interesting stories surrounding the growth of this new company.


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Exclusive Channel Annual Meeting in Brazil By James Yu

On May 17th, Casa Carrier and Totaline, the largest fran-

chised networks in air conditioning and refrigeration respectively

in Brazil, met for two days in Manaus, Amazonas, for the first

annual meeting with Midea. This particular conference was re-

served for Midea

Carrier Brazil‟s

two exclusive

channel partners,

with the purpose

of celebrating the

success of these

partnerships, and

to plan strategies

for the future.

The meeting was

held at the Hotel

Tropical in Ma-

naus, where the 150 guests in attendance participated in stimu-

lating lectures and discussions, and enjoyed guided tours of the

factory and sightseeing in the capital.

"The meeting in Manaus also served to reiterate that these

exclusive channels are of great importance and remain important

to our business models, and our efforts toward optimization. It

was very valuable because we were able to share experiences,

and this contributes to the development of real competitive

advantage in the marketplace," expressed an executive in attend-

ance.

According to

Jocemar Costa, a

Commercial Di-

rector for one of

the exclusive

channels, suggest-

ed that more than

200 franchised

stores would be

part of an expan-

sion in 2013. "We

received a great

overview of the current market issues and were able to plan

with Midea and Carrier, in everything from commercial, finan-

cial, logistics, and product marketing. The balance here is very

good, because the momentum in the market is extremely posi-

tive right now."

Dealers from Argentina Visit Midea HQ By Min Chen

A group of 50 dealers from Argenti-

na visited Midea headquarters on May 10th,

and were warmly greeted by Coobie Zhang,

the General Manager of Midea International

Division.

The dealers are from Carrier S.A., the

joint venture between Midea and Carrier in

Argentina which distributes products with the

private label of Carrier S.A. The General Man-

ager of FMCC (Foshan Midea Carrier Compa-

ny), Jason Huang, gave a presentation about

production capacity, product quality and the

sales network of Midea Carrier joint venture

companies, as well as the cooperation history

of Midea and Carrier, followed by a current business overview

and the company‟s future prospects.

After that, the delegates visited Midea‟s prod-

uct showroom and historical museum, which

during which they were impressed with Midea‟s

front-line products, equipped with energy-

efficient, environmentally-friendly technology.

Many photos were taken throughout the tour.

Afterwards, the visiting dealers were given a

tour of the FMCC factory and the labs at the

Midea Research Institute. Daniel, one of the

delegates, said after the visit that it was a great

pleasure to know more about the company‟s

great scale, much larger than he had imagined

previously. His experiences during the visit

prompted strong emotions from him, and at

one point he stated, “Together we will win!”

NEWSLINE


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By Peck Zhao

Following the Annual Middle East VRF Conference held

in February at Abu Dhabi, Midea CAC joined in the UAE‟s

VRF Standardization Program. During the VRF Conference,

most of the participants recognized the need to establish stand-

ards and regulations for VRF, in order to help drive VRF indus-

try growth.

VRF systems are relatively new in the UAE, and really the

entire Middle East region, overall. Because of this, there is cur-

rently no official standard covering VRF and multiple split

units. Additionally, the efficiency of VRF systems has not yet

been proven because of the lack of standards and testing meth-

ods for a certification process. Very few third-party certification

organizations cover the scope of VRF products, while other

categories such as chillers, split, rooftop packaged, terminals

and heat pumps have fully-standardized certification processes.

The UAE government is now determined to get involved in

developing these sorely-needed standards and regulations for

VRF systems.

ESMA, the Emirates Standardization and Metrology Au-

thority, announced its plan to start improving the energy star

ratings for existing air conditioners, and to implement a new

standard for VRF. Main HVAC industry figures such as Midea

were invited to participate in developing the new standard. Since

the end of the VRF conference in Abu Dhabi, three meetings

have been held in as many months, with Midea CAC and its

exclusive distributors in the UAE officiating at these meetings,

as well as two special bilateral meetings with ESMA. The plan is

for these new standards to apply to all GCC (Gulf Cooperation

Council) countries.

Midea, as one of the top three manufacturers in the air

conditioning industry, is dedicated to research & development

relating to energy-saving technologies and reliability. And after

only 14 years effort in the VRF industry, Midea is already one of

the top three in China and top ten in the world.

Midea‟s position in regards to the standardization effort is

that any certification process must focus on measuring energy

efficiency as accurately as possible, and on helping manufactur-

ers to continue improving.

For Midea and its partners, this process is a good oppor-

tunity to learn first-hand about the development of regulations

& environmental policy by GCC governments, to collect the

latest information from other manufacturers, and most im-

portantly, to build influence in GCC region.

NEWSLINE

Laundry Division Introduces Market Camp By Blinda Li

In order to aid their marketing strategy and planning,

Laundry Division launched their Market Camp

last month.

Select representatives from 4 product

nationwide centers (Shenzhen Product Man-

agement Center, Changsha Product Manage-

ment Center, Hebei Product Management

Center, Liaoning Product Management Cen-

ter) organized a group of technical staff from

across the Laundry Division for the 2 week

schedule of activities in the Market Camp.

The Market Camp activities focused on the occurrence of

defects in computer boards, electric motors,

suspenders, door switches and clutches, by

which the participants were able to learn to

determine the cause of the problems and put

forward ideal solutions. Besides this, the

Camp also focused on discovering technolog-

ical and operating problems which have no

solutions, on summarizing common problems

for subsequent improvement, on analyzing

the effect of earlier improvements made to factory quality.

Midea CAC Participates In UAE Certification

Standards Development


8

Six Sigma: Laundry Division Completes

Phase I of Black Belt Training

By Blinda Li

FEATURE

O ver the past few months, Midea has been launching

training seminars throughout the company‟s functional depart-

ments and divisions regarding something known as “Six Sigma”.

It consists of strategies and approaches by which processes in a

corporation can be improved by eliminating defects and nega-

tive variability, thereby ensuring consistently high rates of suc-

cess wherever these improvements are implemented.

Six

Sigma was

originally

developed by

Motorola and

then brought

to promi-

nence when

it was imple-

mented at

General

Electric. Its

origins lay

within manu-

facturing

process re-

finement.

The origin of

the name

“Six Sigma”

comes from

idea of

achieving a yield of production of six standard deviations be-

tween the mean of any process and specification limits. This

basically means a defect-free yield of 99.99966%, or a virtually

perfect process. In the field of statistics, standard deviations

have long been represented by the Greek symbol of Sigma (or

“σ” ), and thus the name of “Six Sigma” for this pursuit of pro-

cess improvement came to be.

From April 7-9th, the Laundry Division launched Phase I

of its Six Sigma Black Belt Training, with an attendance of 33

people. In this training session, the topic focused mainly on

knowledge about logic and tools in Phase D and Phase M. Over

3 days of study, Black Belt trainees reviewed the Six Sigma

knowledge they gained during the Green Belt training before, in

addition to building on established Six Sigma methodology. So

far, 33 Six Sigma improvement projects have been started,

where Six Sigma methods can be used to resolve most prob-

lems.

It has been expressed by many that, after participating in

Phase I of

the Six Sigma

training,

trainees feel

they have

corrected

their misun-

derstandings

through the

lectures given

be Mr. Yang

Binyu. They

have im-

proved their

knowledge

about Six

Sigma tools,

but also for

the reasoning

of these

tools, how to

analyze the

results of such implementation.

After the Black Belt session, the Laundry Division will

organize a Phase I Green Belt session, and a Phase II Black Belt

session. In the meantime, Laundry Division will organize follow

-up instruction seminars for trainees, in order to bring more

practical purpose to their studies. This will help improve the

trainees‟ ability to resolve problems by what they‟ve just learned,

to become a professional team with intimate knowledge of Six

Sigma methods and tools, so as to lay a solid foundation for the

Division‟s new culture.


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By Blinda Li

O n April 18th, the 3rd China Independent

Innovation Conference was held at the Great Hall of the People

in Beijing, during which the organizers presented its Top 10

Innovative Enterprises of China ranking for 2013. Notably,

Midea Group was the only household appliance manufacturer

present on this list of honored Chinese companies.

Experts, scholars, and leaders present in the annual

conference unanimously agreed that to shatter the development

bottleneck and resolve in-depth conflicts and problems,

innovation must be the fundamental solution, and in turn

technology should be the focus for everyone.

The 10 enterprises listed within the ranking were

commended after the initial announcement, with the intention

of inspiring those and others to continue in the pursuit of

original research and development, according to the event

organizer.

As a giant in white goods production, Midea has always

viewed technological innovation as a strategic priority and the

means by which steady development can be sustained. In the

face of the severe economic climate at home and abroad, and

the slowdown in the appliances industry overall last year, Midea

focused on three strategic keys: “Product First, Efficiency

Driven, and Worldwide Operation” as a means to further

develop business priorities such as “Concentrating on Core

Industry, Streamlining Product Structure, Assuring Quality, and

Improving Business Efficiency”.

From the end of 2012, Midea counted a total of 6,783

technical researchers and developers on staff, and its investment

in technical development accounted for 3.29% of its total

revenue from that year. Over the past five years, Midea Group‟s

total investment in R&D has amounted to more than 10 billion

RMB.

Abundant investment in R & D enables Midea to realize

brilliant achievements, and lays the foundation for future

competitive development.

By the end of 2012, Midea Group had applied for 16,460

patents, with the number of authorized patents reaching of

9,032. In addition, the company was responsible for formulating

208 national industrial standards, as of late 2012. Presently,

Midea is sponsoring the formulation and revision of IEC

international standards for electric pressure cooking saucepans,

electric fans, and microwave ovens. With respect to industrial

designs, Midea has won 10 German Red Dot Awards, 4

German IF awards, and 9 American IDEA awards, as of March,

2013. Midea has also won more than 100 internationally

recognized awards, such as the ROK GD Award, ROK PIN-

UP Award, Japan G-Mark Award, and the China Red Star

Award.

Over the next three years, “Midea will follow the „Value

Creation‟ route to concentrate on core industries and products,

in order to provide consumers with more innovative products

and meet their ever-changing demands,” according to a senior

executive of Midea Group.

FEATURE

Zhang Laiwu, Vice Minister of Science and Technology.

Lu Yongxiang, Academician of CAS and CAE.

Midea Only Appliances Manufacturer in

Top-10 National Innovation Ranking


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CAC New Product Promotion Tour Hits 33

Cities Across China

C AC‟s New Product Promotion Tour for 2013 is al-

ready underway, having started back on May 7th and continuing

on until June 18th, with a theme of Technolo-

gy Inspires Possibilities. The tour covers 33 cities across China,

with the first stop in Guangzhou on May 7th, and the final city

being Ürümqi (Wulumuqi), on June 18th. There are four sepa-

rate regions which the tour will generally cover, those being

south-eastern, northern, eastern and mid-western areas of Chi-

na, which will include most of the country‟s major cities, includ-

ing Shenzhen, Shanghai, Beijing, Chongqing, Hangzhou, Nan-

jing, Hefei, Xi‟an, Harbin, Nanchang, and others. The tour pro-

motes three of CAC‟s newest key products: the Full-DC Invert-

er X-Series VRF System, the Super High Full Falling Film Cen-

trifugal Chiller, and the Air Source Heat Pump Water Heater

System.

The Full-DC Inverter X-Series VRF System is the first

VRF system featuring such energy-efficient technology that can

achieve a coefficient of performance (COP) record of 6.75, 90%

higher than the First Level Energy Efficiency Standard as de-

fined by the Chinese government. The modular design allows

for a maximum combination amounting to 88HP, currently the

top capacity for VRF systems in the world, and the eye-catching

appearance of the outdoor units are a perfect match for today‟s

modern architectural designs.

The Super High Full Falling Film Centrifugal Chiller has

been recognized as an significant achievement by international

standards by two academicians from the Chinese Academy of

Sciences and the Chinese Academy of Engineering, and by 7 of

the top Testing Institutions of Scientific Research and Industry.

The dual-stage falling film centrifugal chiller employs 20 patents

(5 invention patents and 15 utility patents), which include the

advanced full falling film technology, dual-stage compression

plus vapor injection technology, pre-whirl guide vane technolo-

gy, and intelligent control system technology. These impressive

patents all combine to make up the chiller‟s COP 7.06W/W

under AHRI-standard conditions, ushering in the new COP-7

era at CAC.

The Air Source Heat Pump Water Heater System employs

an innovative “E+ Blue Diamond” enamel tank, which results

in energy savings of up to 75%, and a lifespan of at least 15

years. Another feature of this system is its water tank, which

features a super-adhesive coating, which can sustain impact of

800,000 times, and 480 hours of acid-resistance.

With these highly advanced products being shown on this

tour, the theme of inspiration through technology seems quite

appropriate.

FEATURE

By Leticia Zhou

Full Falling Film Centrifugal Chiller (left) and X-Series Full-DC Inverter.

Various air source heat pump water heater systems.

In Shanghai.


11

By Blinda Li

B eginning in March, Midea‟s Laundry division

launched its China-wide “Washing Revolution” tour, covering

23 key cities, to further promote its new iAdd intelligent wash-

ing machines in the China market. Some of these cities included

Beijing, Wuxi, Chongqing, Hefei, and Foshan. With such a visi-

ble campaign, the hope is that Laundry Division‟s efforts will

set off a new movement in energy conservation in the China

laundry appliances market.

The new launch of iAdd washing machines will surpass

the previous experiences of consumers, with the incorporation

of the technology into top-loading, front-loading and twin-tub

formats to open Little Swan‟s fourth generation of products.

Generally speaking, it is difficult for consumers correctly

determine the amount of detergent needed for each load, result-

ing in clothes which are not fully cleaned, or perhaps left with a

soapy residue. After almost 4 years of heavy research by 200 of

the best R&D engineers at Midea, consumers no longer need to

concern themselves with these problems when inserting deter-

gent into their machines.

The market for household appliances will eventually domi-

nated by consumer demand for greater technology. With in-

creasingly fierce global competition, Chinese home appliance

brands must rely on both key technology development (such as

iAdd) and superior quality assurance to achieve the necessary

edge against well-established brands.

Little Swan has been firmly pursuing integration of global

resources to build up a stringent “quality chain” by using the

most excellent core parts suppliers selected from around the

world, achieving the world‟s top certifications, and employing

world-standard product testing processes, all of which have pro-

vided the ability to produce laundry appliances which boasting

the best quality, the best performance and the longest service life

for consumers around the world.

FEATURE

Midea Laundry Division Launches “Washing

Revolution” With Cross-China Tour


12

Midea Carrier Brazil Launches Campaign

for Mother's Day By James Yu

M idea, one of the top producers of home appliances

all over the world, announced in April its "A Cake for Mom"

campaign, which debuted on Mother‟s Day this month. The

campaign offers to those purchasing Midea microwave and

electric ovens a free kit containing six tins for baking cupcake,

and a professional cookbook that teaches anyone how to pre-

pare and bake with Midea‟s kitchen appliances.

While the promotion focuses on the occasion of Mother‟s

Day itself, it will

last for a

month, and

include 50

stores across

the country. An

additional event

being planned

will involve

offering cupcakes in-store to consumers.

The overall purpose of this campaign is to express the

brand personality of a “creating a better life” for your family by

using Midea products.

"We want to arouse the interest of the consuming public,

showing in practice the possibilities offered by our range of

kitchen products in this segment," explains Midea Carrier ABC

JV‟s Director of Marketing, Henrique Mascarenhas.

FEATURE

R ecently in May, Midea ECO split-style air condi-

tioners, featuring the 1 kWh per night feature, have successful-

ly completed an appraisal conducted by the China Quality Cer-

tification Center (CQC), which is aimed at determining degree

of safety relating to its electrical operation. The certification

granted makes Midea the first brand in China to pass this safe-

ty appraisal.

In China, China Compulsory Certification (CCC) is a

similar example of another basic, yet important certification for

household appliances, constituted by three sub-certification

stages: CCEE, CCIB, EMC. (CCEE: China Commission for

Conformity Certification of Electrical Equipment; CCIB: Chi-

Midea Eco Air Conditioners Pass National

CQC Software Appraisal By Crystal Lun

na Commodity Inspection Bureau; EMC: Electro Magnetic

Compatibility)

With the increasing application of electrical control mod-

ules in air conditioners, the safety of electrical components has

become more important to the overall analysis, thus this new

CQC appraisal directed towards safety concerns is a necessity

for the air conditioner industry.

Experts from CQC had said that electrical safety certifica-

tion will soon become a mandatory standard in the industry.

Midea is just the first major manufacturer to have taken initia-

tive with these safety appraisals.


13

Myanmar’s Dealer Visit to Midea HQ

T oward the end of this past month, a group of 30

dealers from Myanmar paid a visit to the Midea headquarters in

Shunde. These dealers mainly manage Midea-brand products in

Myanmar, and most of them have a history of handling Midea

products for dozens of years now. Starting from directional fans

in the earliest days, they gradually enlarged their offerings to air

conditioning, microwave oven, induction

cooker, and rice cooker products. After a

brief introduction about Midea, the dealers

were taken on a tour of the headquarters,

including the product gallery and historical

museum, to give them a better familiarity

and confidence about the company, its

brand, and its products.

Ms. Shen, a second-generation Bur-

mese-Chinese originally descending from

Yunnan province, runs a home appliance

store in Myanmar. She explained that she

established a relationship with Midea dur-

ing the 1990s and had a strong bond with

the company. “Basically the price of Midea

products is more or less in the same range

of those Japanese and Korean products.

Since the quality is really good, Midea en-

joys a reputation for reliability among consumers in Myanmar.

Especially when it comes to fan products, once you mention

Midea, people immediately know this brand and will purchase it

without a second thought,” she said. She also noted that the

visit to Midea‟s headquarters was exciting in an educational way,

since most other dealer incentive trips focus mostly on tourist-

like sightseeing. “Throughout this visit, I have seen Midea‟s

magnificent headquarters, all of Midea‟s products and their de-

velopment path,

which all give

me a great im-

pression, “she

added.

Mr. He, a

young man in

his early 20s, is a

third-generation

Burmese-

Chinese. His

family store has

sold Midea

brand products ever since his parents‟ time. “Burmese all have

Chinese names, so there is a connection. Midea has impressed

us very much, and we are very happy be here in China to learn

more about this company,” he said. When asked about his im-

pression of Midea brand, he laughed: “When I was 8 years old, I

happened to ask my mom, „What is the

brand of this fan?‟ We had used it for sev-

eral years. My mom told me it was a Midea

fan and that it was almost as old as me.

This surprised me, giving me a sense of

the high quality of this fan. When I began

planning to deal in home appliances, the

first brand to come to my mind was

Midea.”

FEATURE

By Sandra Sun

Mr. He.

Ms. Shen and her husband.

MDV X VRF with transparent siding.


14

CAC’s 18th Global Technical

Training Seminar

By Amber Liu

C AC held its 18th global technical training seminar last

month at

Midea HQ.

Over 80 at-

tendees

throughout the

world attended

this seminar.

For those una-

ware of CAC‟s

training pro-

gram, this

event has been

held by them

twice a year

since 2004.

The train-

ing included

two phases,

according to

the training emphasis. The first phase focused on new products

in 2013 and product benefits against main competition. Popular

VRF products, V4 plus family products like V4 Plus, V4 Plus R

series (heat recovery type), V4 Plus W series (water-cooled

type), V4 Plus S series (super all-DC inverter type), V4 Plus I

series (individual DC inverter type), D4 plus and the 4G net-

work control

system (IMM)

are all included.

The 29 at-

tendees in this

phase were

made up of

project engi-

neers, sales

managers and

purchasing en-

gineers from

Asia, Africa and

Latin America.

Of this group,

80% had never

attended this

training before.

The second

phase of training focused on the installation and commissioning

of V4 plus, D4 plus, 4G network control systems, and air-cooled

modular chillers. After the presentation of technical points, the

engineers went to the CAC product sample room to do some

key trouble shootings by themselves, which helped

to apply theories to practice. For this phase, a total

of 56 technical engineers from Europe, Asia, Africa

and Middle East attended.

The 19th global training is scheduled to be held on

October, 2013. Midea CAC would like to remind its

distributors that they‟re always welcome to partici-

pate in these training seminars.

FEATURE


15

Adeus E Até Breve

By Matthew Smith

A lexandre Lengler

Finance Specialist

Introduction:

For the past year, Alex Lengler has been stationed at

the Midea headquarters in Shunde, China, in the

Finance Department of Midea’s International

Division. He is originally from the Midea-Carrier

South America JV head office in Brazil, with 7 years

of experience with the organization there. Next

month, he will be leaving Midea headquarters to

return to his work in Canoas, Brazil, but before he

leaves, he has agreed to sit down with ADVANCES

to discuss his experiences as a foreigner working in

China for the past year.

ADV: Alex, thank you for taking the time to sit down for

this talk. Can you start off by telling me a bit about your history

with Midea-Carrier?

Alex: Hi Matt, it‟s my pleasure. I first joined the company

in 2006,

through the

company's

internship

program

while I was

still studying

in college.

After

graduation, I

was hired

permanently

in 2007. I

have always

worked in

finance, but

I have very

strong

relationships

with many

people in

every

department. I like working in a place where I know people and

feel at home, and Midea Carrier is that kind of company.

ADV: How did this exchange opportunity first present

itself to you?

Alex: Well, my CEO, Berenice Hleap, informally

mentioned this to me, asking if I would be willing to work in

another country. My answer was yes, and after a few days she

presented the idea of this training program at Midea

headquarters in China, which I accepted with a lot of

excitement.

ADV: How would you compare your initial expectations

with what you encountered here in the first month or so?

Alex: My expectations were varied, but in fact, I really

didn‟t know what I would find in China. I talked with other,

more experienced visitors here, who gave me some very helpful

advice. I have to say, my initial and lasting impressions were

better than I expected and really, I was able to adapt without

any real problems.

ADV: So what kind of work do you engage in with your

Finance Department colleagues?

Alex: Basically, the focus of my work relates to the

reporting of Midea Carrier‟s financial figures to the head office

in China, a process that will continue to improve in the coming

months after my return to Brazil. I‟ve also been aiding people

here in China with questions relating to our processes in South

PEOPLE

Alex, holding my notebook hostage, until I arrange for $1 million dollars and a helicopter.


16

Adeus E Até Breve (cont.)

By Matthew Smith

America, and even questions relating to culture.

ADV: What are the biggest differences that you‟ve noticed

between the office here and yours

back in Brazil?

Alex: Ah, actually, finance

departments tend to be quite

similar, just the location is on the

other side of the world! [laughing]

There are some differences in the

behavioral and culture, because

the Chinese are different in some

aspects from Brazilians, however

the basic professional

characteristics in these two

countries are similar.

ADV: How do you think

your experiences here will help

you once you start working back in Canoas again?

Alex: Surely the biggest benefit will be in communication.

I now know the people here in China, and of course I also

know many in Brazil, so this will help with building the

relationships between both locations, and hopefully this will

help to increase speed and understanding when information

exchange is needed by either side.

ADV: Are there

going to be any

new exchange

personnel from

the ABC JV to

replace you here

once you return

home?

Alex: I haven‟t

heard anything

about that yet,

but I think it's a

good idea to

continue this

kind of exchange

program, because

it facilitates the building of communication between the

company‟s different employees, in addition to training its

professionals with useful international experience.

ADV: Finally, what do you think you will miss the most

about your life here after you‟ve left?

Alex: I'll leave behind the great friends I've made

throughout this past year, which will be difficult. I was very well

received by my colleagues at Midea China, and I look forward to

the opportunity to return this treatment when I receive any

visitors back in Brazil. I‟ll be waiting for you guys!

PEOPLE


17

Midea Donates 10 Million RMB to Ya’an

Quake Relief, Employee Donations to Follow By Blinda Li

O n the night of April 20th, shortly after news of the

Ya‟an City earthquake reached the world, Midea Group made an

immediate decision: it would donate 10 million RMB to the

relief efforts,

in addition to

advocating

support from

society to also

help with the

disaster, and

support one

another to get

through

difficulties

together.

Midea stated

its intention

to stay

focused on

the disaster

and make

additional

contributions

to the disaster

-stricken areas

with practical action. Meanwhile, many employees of Midea

expressed much sympathy through their Weibo accounts for

those suffering from the devastation.

Records show that 15 employees from Midea originate

from the quake-stricken areas, and the company announced

that any of those employees and their immediate family

members who have suffered from casualty or collapse of their

homes would

receive paid

leave and

travel

allowance to

return home.

Those

employees

suffering

from

extraordinary

loss will also

be eligible to

apply for

relief from

the Midea

Support

Fund.

By all

accounts,

Midea was

one of the

most immediate and substantial donor s amongst household

appliance manufacturers in China. Additionally, the functional

departments at Midea headquarters have been collecting

individual donations since April 22nd.

A lineup of employees depositing donations in the collection box for Ya‟an Earthquake Relief.

COMMUNITY


18

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this be about…?this be about…?this be about…?

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