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www.midea.com Midea Advances Newsletter, December, 2012

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VOL 2, #9, December 2012, No. 24

Midea Gets Ready For A Whole New Year

After Narrowly Escaping the Mayan Apocalypse, Midea Happily Looks

Forward to a Prosperous New Year For All


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Midea

Advances Newsletter

Contents

NEWSLINE

Full-DC Inverter Technology

Rated as International Lead-

er PAGE 10

FEATURE

Midea Pressure Cooker Wins

Best Fashion Design Honor PAGE 6

Midea’s Washing Machine

Division Contributes Most

Over Past 20 Years PAGE 3

Midea Advances Newsletter is published monthly

by the International Strategy Department of

Midea Group. We welcome all comments, sug-

gestions and contribution of articles, as well as

subscribing our newsletter. You can reach us at:

[email protected]

Midea Group

Add.: Midea HQ Building, No.6 Midea Ave, Bei-

jiao, Shunde, Foshan, Guangdong P.R.C. 528311

Tel: +86-757-2360 4714

Fax: 86-757-2660 5455

Web: www.midea.com

Publisher: International Strategy Dept.

Managing Editor:

Matthew Smith

Mandy Wang

Correspondents:

Amber Liu

Crystal Lun

Tony Miao

Sue Ou

James Yu

Peck Zhao

Blinda Li

Shine Li

Calvin Yang

Hui Yang

WORLD SHOWCASE

PEOPLE

New Midea-Drafted IEC In-

ternational Standards Offi-

cially Adopted PAGE 5

Over 1.7 Million RMB Award-

ed at Washing Machine Divi-

sion’s Science & Technology

Award Conference PAGE 4

Midea Shows Off at the 43rd

International HVAC&R Con-

gress and Exhibition in Ser-

bia PAGE 15-16

Midea Carrier ABC JV Cele-

brates First Anniversary PAGE 12-13

Midea Brand Launched in

Argentina PAGE 14

Appliance Compliance

PAGE 17-19

Midea SNAPSHOT

Midea Opens Garden Ter-

race for Daily Employee

Breaks PAGE 10

Carrier Midea India Launch-

es First Wave of Products PAGE 11

Midea MDV Elite Camp – 2nd

& 3rd Sessions PAGE 7-8

Chinese Consul General in

Ho Chi Minh City Visits

Midea in Vietnam PAGE 13

Midea CAC at the 2012 Asia

ATW Technical Forum PAGE 9

Midea and Renowned Scien-

tist Dr. Pingcheng Join Forces

PAGE 9

MIDEA IN THE COMMUNITY

Students in Ho Chi Minh City

Receive Midea Subsidy PAGE 16


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NEWSLINE

By Blinda Li

A t the 20th anniversary celebration for Wuxi New

District (WND) on November 18th, a total of 20 companies,

including Midea’s Washing Machine Division, received hon-

ors declaring them to be the “Top Contributing Enterprises

Over Past 20 Years”. Leaders from Jiangsu Province, Wuxi

City and WND were present at the ceremony and top leaders

from the central government sent messages of congratula-

tions, all expressing appreciation for the contributions made

by Washing Machine Division to the development of WND.

WND was born out of the second series of hi-tech de-

velopment zones commissioned by China. Since its inception

in 1992, WND now occupies an area of 220 square kilome-

ters, and has attracting more than 1,500 foreign-invested

companies, including 80 Global 500 companies. Its GDP has

exceeded 100 billion RMB; in 2011, it reached 110 billion

RMB. Its GDP per capita is already at 25,000 USD, based on

the area’s registered permanent residents, which puts it at a

level of upper-intermediate developed countries, and has

placed WND at the forefront of China’s hi-tech development

zones.

WND is now venturing forward on a new mission: Mr.

Xu Gang, Member of the Standing Committee of the Wuxi

Municipal CPC, and Secretary of the Party Working Com-

mittee for WND’s Administrative Council, remarked that

Wuxi will explore and engage in new development routes by

shifting from a manufacturing basis to one of innovation.

This is the target that WND aims to fulfill in its “12th Five-

Year Plan”, the period in which WND will be built into an

innovative and service-oriented international location fea-

turing unique competitive advantages.

It is at this point in WND’s new undertaking where

timing is essential for Midea to deepen its strategic transfor-

mation. Media’s Washing Machine Division will follow the

operating principles of “perfect products and improved

quality”, making consistent effort to promote scientific and

technical innovation and transformation, as well as upgrad-

ing and dedicating itself to becoming a world-class washing

machine manufacturer.

Midea’s Washing Machine Division

Contributes Most Over Past 20 Years


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NEWSLINE

Over 1.7 Million RMB Awarded at Washing Machine Division’s Science & Technology

Award Conference

By Blinda Li

M idea’s Washing Machine Division (WMD)

hosted their annual Science & Technology Awards Confer-

ence last month on November 26th, which boasted an at-

tendance of 200 people, consisting of prize winners and

prominent figures from various departments.

Many activities, such as seminars, symposiums, skills

contests, followed by evaluation and selection of “pursuit

of excellence” projects, were organized by the Division. In

this year’s science and technology promotion month, the

Division fired-up staff enthusiasm for participation through

its “Four Firsts” initiative, which involved introducing four

new elements to the conference: awarding staff for tech-

nical breakthroughs, an industrial design competition, a

brainstorming session for sales techniques, and a survey

about products which performed unexpectedly or unsatis-

factorily in markets. The Division tailored a set of 24

awards. Thanks to the prizes and support from Midea

Group, winners received a record sum amounting to

1,714,000 RMB.

Activities aside, there were five main speaking items

on the agenda at the conference. It started with the annual

working reports made by the heads of the research and

development, manufacturing, and quality departments, and

was followed by the announcement of the Decision of the

Washing Machine Division on the 2012 Science & Technology

Award Conference, by the Director of Human Resources.

With thunderous applause, the leaders of the Division pre-

sented certificates and trophies to 7 winning teams in the

categories of “Technical Innovation”, “Manufacturing Pro-

ject”, and “Quality Improvement Project” and others, as well

as individual winners of the honorary titles such as “Science

& Technology Star”, “Pacesetter for Excellence in Science &

Technology” and “Improvement Star”. Next, Su Gaofeng,

the “Science & Technology Star”, Yin Peijie, the leader of

the winning project team of the “Technical Innovation

Award” and Xiao Pingjie, the representative of the winning

project team prize of the Quality Award, respectively shared

success stories and their experiences with those present at

the conference. Finally, the General Manager of Midea’s

Washing Machine Division summarized by analyzing the

problems existing within the Division, ex-

pressing sincere hope for the staff engaged

in research & development, stressing the

importance of progress along the track of

“science & technology innovation, quality

improvement and precision manufacturing”,

and emphasizing that adherence to operat-

ing principles is the key to realizing strategic

transformation and improving the pattern

of growth.

Prize winners receiving their awards at the Science & Technology Awards Conference.


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Midea’s Wuhu Factory Designated as

Key Technology Enterprise for

National Torch Program By Crystal Lun

NEWSLINE

New Midea-Drafted IEC International

Standards Officially Adopted By Calvin Yang

G ood news from the IEC (International Electro-

technical Commission) - the four new clause modifications

relating to elastic structure technology (dynamic pressure

cookers, IEC60335-2-15(Ed6.0)), drafted by Midea, were

finally published and officially rec-

ognized by the IEC. Word of the

adoption of these modified clauses

was first reported on June 8, 2011,

following the 83rd meeting of the

IEC.

“This will bring us precious

experience for understanding inter-

national standards. This has great

significance for Midea in the industry, setting a new prece-

dent in IEC history for a Chinese technician participating in

IEC clause modification,” commented a senior engineer at

E arly this month, Midea Wuhu Air Conditioning

Equipment Co., Ltd. was honored as “Key Technology En-

terprise” for the National Torch Program by Ou Donglin,

Deputy Director of the Administrative Committee of the

Wuhu Economic Technology Development Zone, and Hua

Guoqiang, General Director of the Science and Technology

Bureau.

The Torch Program, initiated in 1988 as a guidance pro-

gram for developing new and high tech industries in China,

was approved by the State Council and implemented by the

Ministry of Science and Technology. The many purposes of

the program are to implement the strategy of "promoting the

development of the country with science and education", to

Midea.

In the international market, most standards are

drafted or initiated by experts from western countries, mean-

ing Chinese companies have to take a passive approach to

integrating with rules and

norms. Elastic structure

technology was created in-

dependently by Chinese

innovation and adopted by

the IEC, meaning that

Midea now has the ad-

vantage to seize the interna-

tional market. The new rev-

olutionary technology introduces significant advantages on

pressure relief and minimizing blockage.

carry out the general policy of reform and opening to the

outside world, to bring into play the advantages and poten-

tial of China’s scientific and technological forces, to promote

the commercialization of domestic technical achievements,

and to globalize new and high tech industries.

This “Key Technology Enterprise” honor is recog-

nition of the successful industrial transformation of the

Wuhu factory. State and local governments plan to

provide support in market development, information

sharing, capital flow, company management, and public

service so as to promote regional economy develop-

ment.


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NEWSLINE

Midea Pressure Cooker Wins Best Fashion

Design Honor By Calvin Yang

B EIJING, November 19, 2012, Midea new model

pressure cooker, 12PSS509A, stood out from 600 candidates

and was honored as the only “Best fashion designed award”

in small domestic appliances in the 7th CHINA APPER-

ANCE DESIGN PATENT CONTEST.

The annual industrial contest was organized by China

State Intellectual Property Office. The contest judge com-

mented on the product with the unique intelligent pressure

control technology and easy interactive UI. Not only the

Potential buyers are checking out the 12PSS509A at the Canton Fair.

praise was given by the judge, but the market has witnessed

the success of Midea 12PSS509A. It was reported that since

it was launched into the China homeland market in the early

of this year, more than 240 thousand pieces has been sold

with a much high level price. It was proved by Midea that

the sales manager is considering to introduce to overseas

market. We have plenty reason to believe that Midea

12PSS509A will be the super star of small appliance market

in the year of 2013.

app:ds:State

app:ds:Intellectual

app:ds:Property

app:ds:Office


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NEWSLINE

Midea MDV Elite Camp – 2nd & 3rd Sessions

By Peck Zhao

The MDV Elite Camp establishes a good platform for the engineers

and sales managers from Midea’s distributors to share their expe-

riences and discuss marketing strategy together.

Marketing Consultant Timothy Ivory gave an interesting explana-

tion about Midea CAC’s marketing strategy and support policies,

along with an introduction to Midea Group and Midea’s CAC divi-

sion.

O ver the months of October and November,

Midea CAC held their second and third sessions of the

MDV Elite Camp at Midea Headquarters. 34 Midea CAC

distributors and consultants from Asia, Eastern Europe and

the Middle East gathered over these two sessions for an

enjoyable learning experience together.

These seminars aimed to explain the main sales

points of Midea’s commercial air conditioner products to all

participants, especially concentrating on the VRF product

launch, by highlighting its advantages in energy efficiency

and installation flexibility, benefits for both owners and de-

signers. Features such as the modulation technology on the

air-cooled chiller and the IMM (Intelligent Manager of

Midea) control system were also discussed.

CAC Marketing Director John Wei began the semi-

nars with a welcome speech, sharing moments from his 12

years of developing experience in the air conditioner global

market, and explaining the background and purpose of the

setting up CAC’s MDV Elite Camp.

Sue Au from CAC Marketing gave a presentation

about the full range of CAC’s available products, including

the DC inverter/digital scroll VRF, air-cooled scroll/screw,

water-cooled screw chiller, centrifugal chiller, air side termi-

nal, rooftop package unit, split commercial unit, ATW heat

pump water heater, precision air-conditioner, and others,

which displayed to the attendees CAC’s ability to provide

comprehensive solutions for customers who are very con-

scious of energy efficiency.

CAC Marketing’s Peck Zhao then gave an overview of

the VRF market to all the participants, including 2011’s

global market volume, market share by product, and the

main factors affecting the air conditioner market. The most

important point made was about the rise of VRF in the past

20 years, and especially the last 6. Zhao’s presentation

wrapped up with figures for sales performance and the mar-

ket position of Midea CAC in China and the world.

Amber Liu from Marketing then joined Zhao in talking

about the latest DC inverter and Digital Scroll VRF prod-


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NEWSLINE

Midea MDV Elite Camp – 2nd & 3rd Sessions (cont.)

By Peck Zhao

CAC Marketing Director John Wei began the seminars with

a welcome speech, sharing moments from his 12 years of

developing experience in the air conditioner global market,

and explaining the background and purpose of the setting up

CAC’s MDV Elite Camp.

ucts, the V4 Plus and D4 Plus, which provide a perfectly

optimized cooling and heating system with the latest and

most innovative technology.

Marketing Manager Tony Miao finished the seminars

by talking about the modular air-cooled chiller system and

its modular design, with highlights of flexible installation

and application, low initial investment, low operation cost,

and standardized spare parts for fast and easy servicing.

These seminars provide an opportunity for Midea to

present products and policies to customers, and also shar-

ing market information and experiences amongst one an-

other. Attendees from each session remarked that building

collaboration between Midea and its customers through

these sessions was extremely helpful and would make it

easier for both parties to achieve success

Midea’s Himalaya Series: The Most Popular

Brand for Business Elites By Crystal Lun

T his month, an award ceremony titled “2012’s

Most Popular Brand for Business Elites” was held in Bei-

jing. The event was hosted by Osen (a media agency), and

co-sponsored by The Southern Metropolis Daily, The 21st

Century Economic Report, Sohu, Tencent, and several

others. At the

climax of the

ceremony, the

choice for Most

Popular Air Con-

ditioner Brand for Business Elites was revealed to be none

other than Midea’s own Himalaya Series, a popular line of

air conditioners in the China market based on the advanced

full-DC inverter system.

Midea’s full-DC inverter technology provides excel-

lent performance in every aspect: minimum input power of

only 30W, indoor noise level of just 20 dB(A), precise tem-

perature control within ±0.2°, 150V ultra-low start-up volt-

age, low 1Hz running frequency, and a heating mode that

operates in environments as low as -15°.


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Midea CAC at the 2012 Asia ATW

Technical Forum By Sue Ou

T he Asia ATW (Air-to-Water) Technical Forum

was held last month on November 17th in the Jumeirah Him-

alayas Hotel in Shanghai. The main topic was “Focusing On

World ATW Development, Pushing For Sustainable Eco-

nomic Growth”. Government-related associations, firms and

experts in this industry were invited and engaged in extensive

discussion about advanced technologies, new products and

the latest policies.

The head of Midea CAC’s ATW R&D Department, Dr.

Rao Rongshui, announced that, thanks to the Energy Saving

Subsidy provided by the government, product awareness and

recognition of ATW is accelerating. In recent years, sales of

ATW products have been expanding versus traditional heat

pump products: according to the data, Midea’s ATW models

reached 3.8 billion RMB in sales by the end of October.

Rao finished his presentation by introducing Midea’s out-

standing ATW technology which included the direct heat-

ing pressure type water tank, the outside-round type coil

and bottom type coil, the combo type ATW, the dual-core

with double energy types, among others .

NEWSLINE

Midea and Renowned Scientist

Dr. Pingcheng Join Forces By Crystal Lun

E arlier this month, at the Refrigeration Research

Institute, Midea announced its scientific alliance with famed

academic and scientist Dr. Pingcheng. Wu Wenxin, the Gen-

eral Manager of Midea RAC, Li Qiang, the General Director

of the Domestic R&D Center, Xu Hao, the General Director

of the Overseas R&D Center, and Zhang Zhi, the President

of the Central Research Institute, all attended the ceremony

honoring this new partnership.

The event started with the signing of the Cooperation

Framework Agreement between GD Midea Air Conditioning

Equipment Co., Ltd. and Dr. Pingcheng. Midea executives

and the celebrity scientist shared and discussed future re-

search topics and cooperation involving key technology for

RAC heat exchangers.

Dr. Pingcheng, a member of the Chinese Academy of

Sciences and a Professor at Shanghai Jiao Tong University,

graduated from Oklahoma State University, along with a

Master degree from M.I.T. and a Ph.D. from Stanford Uni-

versity.

Dr. Pingcheng has devoted his career to the scientific

field of heat transfer, where his work has earned him four

top academic awards granted by American machinery, aero-

space, and chemical engineering societies, including the pres-

tigious Max Jakob Award. He is currently the only Chinese

scholar to have won four top international awards in engi-

neering thermal physics.


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NEWSLINE

Midea Opens Garden Terrace for Daily

Employee Breaks By Mandy Wang

S ince November, Midea employees at the head-

quarters have been enjoying

daily 30 minute breaks for

tea, coffee and snacks on

the building’s 5th floor,

where they now also have

access to the building’s large

garden terrace, which pro-

vides a relaxing, environ-

mental space for people to

socialize and get to know

each other better.

From 10:15-10:30 in

the morning and 3:30-3:45

in the afternoon, Monday to

Friday, the Midea Logistical Support Company offers vari-

ous sweet snacks, coffee and

milk tea nearby the entrance

to the garden terrace in Sec-

tion A. In case people are

too busy to notice the clock,

the headquarters public an-

nouncement system begins

playing music throughout

the building to notify people

that break time has started.

Everyone is welcome to vis-

it!

Full-DC Inverter Technology Rated as

International Leader By Crystal Lun

T he Eco Energy Project, organized by the Chi-

na National Light Industry Council, and held on Decem-

ber 6th, announced Midea’s full DC inverter as a leading

international technology, as appraised by the Council’s

authoritative experts.

The appraisal was conducted via a thorough

study of energy saving projects by seven experts from

Xi’an Jiaotong University, Jiangnan University, Tsinghua

University, South China University of Technology, China

Household Electric Appliance Research Institute

(CHEARI), and China National Electric Apparatus Re-

search Institute (CEI).

Staff gather in the garden terrace to chat together while enjoying provided snacks and drinks.


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FEATURE

Carrier Midea India Launches

First Wave of Products By Shine Li

C arrier-Midea India (CMI), a joint venture between

Carrier and Midea, has been launching its first Midea brand

home appliances for the Indian market through the month

of December.

The launch consists of a range of residential air condi-

tioners, microwave ovens, and water dispensers. To coincide

with the launch, CMI has rolled out an advertisement cam-

paign with the primary message being, “Bring Home Happi-

ness”.

CMI’s Managing Director,

Krishan Sachdev, said that these

products are positioned as the com-

pany’s mid-premium segment brand.

At the moment, CMI is also

evaluating the potential for introduc-

ing other product categories into the

Indian market. “We may bring in

washing machines, refrigerators and a

range of kitchen appliances in the

The launch attracted much attention in the local media, prompting plenty of coverage.

near future,” said Sachdev.

Nearly half of CMI’s air conditioners will be manufac-

tured at the 150,000 square foot CMI production facility at

Bawal in Haryana. It has a capacity of 700,000 units per year,

and has been manufacturing Carrier air conditioner units

thus far. The JV has already invested $30 million in its oper-

ations and will be investing a total of $100 million over the

next five years.

CMI is aiming to become one of the top 3 brands in

the Indian durables market over

the next 3-4 years. “We want our

growth to be sustainable, and

therefore we intend to take 3-4

years to reach this target. It may be

tough, but it is certainly not undo-

able,” assured Sachdev.


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FEATURE

Midea Carrier ABC JV Celebrates

First Anniversary By James Yu

F rom November to December, Midea Carrier ABC

JV celebrated its first anniversary since the establishment of

the

joint venture in Argentina, Brazil,

and Chile (ABC).

On November 20th, at the JV

headquarters in Canoas, Brazil, the

JV President, Carlos Renk, along

with Vice President Li Xuezhong,

gave inspiring speeches to those

gathered for the celebration, re-

marking on their sentiments and

appreciation for what was accom-

plished throughout the JV’s first

year, followed by an inspirational

ending, calling on the people of the

JV to continue their great work

throughout the coming year.

Similar celebrations were held

in the JV’s Argentina and Chile

head offices, where the company

Presidents for their respective

countries, delivered messages of

congratulations and thanks to their

teams for the great strides they had

made since the formation of the JV.

The Midea Carrier ABC JV was established in 2011,

and over the past year, it has accomplished the massive un-

dertaking of integrating two large

companies across the three adja-

cent Latin American countries of

Argentina, Brazil, and Chile. The

challenges lay not only in differ-

ence of structure but also in differ-

ence of culture, and setting up

principles for differentiation in a

multi-brand system, by which

there must be clear positioning

and business plans for each brand,

with rules for product selection in

each country.

One of the exciting future oppor-

tunities for ABC JV involves en-

tering the local markets for small

domestic appliances. There have

already been product launches in

this category in Brazil, and the

Midea brand finally came onto the

market in Argentina in late No-

vember, with the same plan for

Chile in the near future.

Li Xuezhong and Carlos Renk join forces to extinguish a happily resilient anniversary candle.


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FEATURE

Chinese Consul General in Ho Chi Minh City

Visits Midea in Vietnam By Shine Li

Midea Carrier ABC JV Celebrates

First Anniversary (cont.) By James Yu

First Year Timeline of Midea Carrier ABC JV

September 2011: Midea and Carrier appear as one company at the Febrava Fair in Brazil.

November: Midea employee transfers from China join the joint venture offices.

December: Official celebration held for the establishment of the JV.

January 2012: Committee for JV formed, and final structure implemented.

May: Product strategy meeting for product line of Multi-brand system

June: Combined market share in air conditioners in Brazil reaches new high; Midea brand was introduced to the Chile market.

July: Annual meeting in China between JV and HQ management teams.

September: Chosen as CAC supplier for the Maracana stadium, a venue for the World Cup in 2014 and the Olympics in 2016.

October: Product strategy meeting for 2013-2015

November: Launched new category of small appliances in Brazil.

December: Midea brand launched in Argentina.

O n November 23, the Chinese Consul General in Ho

Chi Minh City, Zhai Leiming, paid a visit to Midea’s Vietnamese

small domestic appliances factory, visiting the production lines,

and holding friendly talks with the manager of Midea’s Vietnam

branch.

Zhai Leiming praised Midea as pioneers in the industry,

pointing out that Midea has been actively developing its commit-

ment to Vietnam and the Southeast Asia market in general. He

expressed his appreciation for their hard work, and hopes that

Midea would overcome the difficulties present in the industry

lately. He also encouraged the company to continue as a shining

example of modern Chinese companies, and promote Sino-

Vietnamese economic and trade cooperation.


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FEATURE

Midea Brand Launched in Argentina

One of Midea’s first advertisements in Argentina, prominently on display alongside a flow of traffic.

By James Yu

T his December, after careful consideration of mar-

ket research and thorough preparation, Midea Carrier ABC

JV launched its first Midea-branded products in Argentina,

with the first being the Lumia series air conditioner, on

shelves in all of the country’s top five retail chains.

as attractive due to its large size and well-developed air

conditioning market, Argentina has nevertheless been a

difficult place for multinationals, due to high trade barriers

and tough restrictions often applied to foreign companies.

To do business there, many have had to rely on local compa-

nies to enter the market, through the OEM/ODM model.

As one of the biggest manufacturers in the world,

Midea has been involving in the Argentinian market for a

long time, and until now, it was one of the major OEM sup-

pliers in Argentina, with very good relationships amongst the

local players in this market. Meanwhile, Carrier also occupied

a pivotal position in the high-end air conditioner market, and

during consideration of the ABC JV between Midea and

Carrier, it was a great opportunity by the former to step into

a mid-tier position in the air conditioner market as a key

component of the multi-brand system employed by the JV.

The newly-launched Lumia air conditioners were assembled

by the JV production facility in Tierra del Fuego. For the

brand’s first step into the market, the JV made significant

investment, both above and under the line, and one example

of this can be seen in the form of Argentina's most popular

female hockey player, Luciana Aymar, who was selected to

be Midea’s spokesperson, as her performance-based persona

is a perfect match for Midea’s own identity as a young, fast,

and strong player in its field.


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Midea Shows Off at the 43rd International

HVAC&R Congress and Exhibition in Serbia By Tony Miao

A s the main sponsor, Midea collaborated with its

Serbian distributor to participate in the 43rd International

HVAC&R Congress and Exhibition in Belgrade. The 43rd

HVAC&R International Congress is dedicated to current

topics in the broad HVAC&R field, primarily focusing on

buildings as main energy consumers and the use of renewa-

ble sources and the most up-to-date products used in

HVAC&R systems. Midea exhibited the DC inverter VRF

and air cooled modular chiller in the exhibition. The super

DC inverter VRF system which uses full-DC inverter tech-

nology and IPLV (integrated part load value) up to 5.8, re-

ceived much attention. Competing suppliers also showed

their new technology and products, such as Samsung’s DVM

plus IV and LV Multi V, Toshiba’s SMMS, and Daikin’s

VRV IV.

The organizer’s goal is to promote the exchange of in-

formation on new technology that addresses growing energy

demand, as well as to present the most up-to-date architec-

tural designs that conform to new thermal performance

standards, which are the preconditions for truly energy effi-

cient buildings. Tony Miao, Midea CAC’s marketing manag-

er, represented Midea and its distributor at the conference

with a presentation about the VRF product lineup and their

application in various projects.

Todorovic Branislav, the most experienced professor

in the Serbian HVAC industry and the most reputable pro-

fessor at Nanjing University, gave praise to Midea; he ex-

pressed his happiness to see the improvement of Made-In-

China products in recent years, in terms of product quality

and competitive pricing. Midea is one of the world’s great-

est producers of air conditioning, accounting for almost

10% of the global production of air conditioners. Branislav

remarked that when he walks through Belgrade, it is inspir-

ing to see Midea split-style air conditioners everywhere, and

said that he hopes Midea’s commercial air conditioners can

provide even better solutions to the HVAC&R global in-

dustry in the future.

The second day of the conference was dedicated to the

Student Program, which has already become a tradition at

the conference, and is intended for students and those of

the youngest working generation who have chosen to devel-

op their career in the HVAC&R industry. Studies and re-

ports written by participating students which concern the

HVAC&R industry are accepted during this day, with the

best ones to be published in a top industry journal and pre-

sented at international student conferences and meetings.

Miao and the commercial product engineers from Midea’s

distributor gave a thorough explanation covering all kinds

WORLD SHOWCASE

The family of Midea products shown at the International HVAC&R Congress and Exhibition in Serbia


16

of air conditioning systems such as the refrigeration and

chiller systems. He talked about future trends for air condi-

tioning solutions around the world, and pointed out VRF as

a product for the future by way of its high efficiency, zone

design convenience, and flexibility in selection, installation

and aftersales service. Midea’s VRF is widely employed in

Asian and European countries and will be a good solution

Midea Shows Off at the 43rd International

HVAC&R Congress and Exhibition in Serbia (cont.)

By Tony Miao

WORLD SHOWCASE

PEOPLE MIDEA in the COMMUNITY

Students in Ho Chi Minh City Receive

Midea Subsidy By Shine Li

M any believe that China's Teacher's Day and May

Day, also known as Children's Day, is the same for teachers

across the world. In fact, each country has its own day to

honor teachers, and November

20th each year is when Vietnam

celebrates its teachers.

This year’s Teacher’s Day

in Vietnam will mark the 30th

anniversary of this occasion in

the country, and in honor of

this moment, Midea graciously

stepped up to help the students

of Ho Chi Minh Normal Uni-

versity with a celebration of

Teacher’s Day. As Midea feels it

is a civic responsibility to sup-

port the communities it operates within and relies upon,

Midea’s Vietnam branch announced at the event that they

for Serbia throughout the future.

In the Serbian market, Midea split air conditioners and

VRF products were graded in surveys as highly recommend-

ed by all end users. Judging from attendees reaction to

Midea’s products at this conference, Midea’s brand will likely

become even more appealing to those in the Balkan

would fund four impoverished college students studying in

the university’s Chinese Department.

More than 300 college students were invited to attend

the celebration. The representa-

tive from Midea’s Vietnam

branch introduced the history

and strategic planning of Midea

Group, and expressed the com-

pany’s great desire to cooperate

with and support the Chinese

Department of Ho Chi Minh

Normal University, including

sponsored internships and

training events.

Ho Chi Minh Normal Universi-

ty’s Dean of the Chinese De-

partment thanked Midea deeply for their generous support

of their students, both financially and in opportunities for

employment.


17

PEOPLE

By Matthew Smith & Mandy Wang

ADV: First of all, Sophia, thank you so much for taking time to sit down with me, as I know you’ve been pretty busy re-

cently. Over the past several months of working together, I know quite a lot about you, but a lot of our readers don’t – so

could you introduce yourself?

Sophia: Well, I’ve been here for five months, working to develop and implement a comprehensive set of compliance poli-

cies for our company. Before join-

ing Midea, I worked in a law firm in

the Netherlands for nine years.

ADV: Wow, the Netherlands… and

now you are back in China! This is a

huge change for you, both in loca-

tion and career focus. How did you

come to be working for Midea in

China, from a law firm in the Neth-

erlands? What was so attractive

about the company for you to make

this move?

Sophia: Actually, I know Midea

well from my previous work with

them. Midea has a holding company

in the Netherlands and back then,

my firm helped them to establish

this company and conduct its busi-

ness. Through the course of this work, I got to know Midea and its people. Two of those people were Dr. Andy Gu and

Armin Chen, both of whom I had a very pleasant working relationship with. After some time, Armin contacted me, saying

that Midea was expanding internationally, and that the company wanted to strengthen itself with overseas expertise, who

understand the language and culture of international business – so that was their side of it. What made this proposal attrac-

tive for me was largely because I am Chinese. I always wanted to return to China eventually, and I felt this was a good

moment to try, because Midea is such a large company, and probably the largest private company in China. I see my role

here at Midea as a good platform for me to develop my skills. And being Chinese, I also feel so proud to work for such a

globally successful Chinese company, and to contribute my skills to its future success. So I see this as a perfect match.

ADV: Yes, the way you describe it, it sounds perfect. You have nine years of working overseas, and you speak Mandarin,

English and Dutch (and Cantonese in the very near future, I think, haha!) In addition, you understand cultural and busi-

ness differences between China and the western world. So it seems very ideal. Now that you are a true insider at Midea, as

one of its employees, how do you feel about the people here?

Sophia: Well… some are quite professional. Some… are not so international, speaking frankly, haha.

ADV: Haha, well, that’s true for a lot of companies here. You can’t expect everyone to be international - it takes time. So,

speaking of being more international… your arrival here brought something new to the company: an area of business that

Appliance Compliance


18

PEOPLE

Appliance Compliance (cont.)

will enhance Midea as a company. Could you tell us about this?

Sophia: Ah, compliance.

ADV: Compliance. Some people in China might not know what compliance is.

Sophia: Yes. In China, if you discuss compliance, many people won’t understand at all. Outside of China, especially in

Europe and North America, companies have a much higher awareness of this concept and the importance it holds.

ADV: Now, you said that you worked in a law firm before. Was your previous legal work the same as the compliance

work you do now?

Sophia: I do have a legal background. But what’s the difference between law and compliance? Not so long ago, company

legal departments were concerned more with remedy procedures, legal disputes and contract review. Those are the major

tasks. Even the legal department in Midea feels their primary challenge is mostly contract review and dispute resolution.

But when a company grows, especially into international

spaces, it is critical to pay attention to the issue of preven-

tion. Knowing how to avoid problems is at least as im-

portant as knowing how to deal with them, likely more

so.

ADV: So your addition to Midea means that the execu-

tive management realizes the importance of compliance

and precaution.

Sophia: Yes, they’re very aware of the need for a proper

compliance implementation at Midea. They understand

that prevention is the better approach. So that’s why I am

implementing compliance, not only in Midea in China,

but also in the international joint ventures that we have

with Carrier. I have to say that Carrier pays a lot of atten-

tion to compliance.

ADV: So actually, we are learning a lot about compliance

from Carrier, as compliance is a new concept for most of

us.

Sophia: Yes, even for me, it is still a learning process, as I

only worked in a law firm before, which only partially

prepared me. Speaking of which, I am not the only new

addition for our compliance efforts; Monique, our com-

pliance manager, previously worked at Daimler in

Guangzhou. We work together, developing a compliance



19

PEOPLE

framework for Midea. Carrier and Daimler have been international companies for so many years, so their compliance

structures are already quite mature.

ADV: Carrier is a big player in just one of our main industries, while Daimler is not related at all. Obviously we cannot

just copy and paste what we have learned from them. How do you transform the measures and policies to suit Midea?

Sophia: You’re right, copy and paste won’t satisfy Midea’s needs. So we’re taking this one step at a time, making sure

each step is the correct one. It will take a long time, and it is a great challenge, but we have our goal in sight.

ADV: Do we stay in frequent contact with Carrier in regards to developing our compliance framework? As we are based

in China, and Carrier is based in U.S. and our JVs are in other countries, this must make things complicated.

Sophia: Certainly. We have regular contact with Carrier via phone and email to exchange ideas. From time to time, they

also organize lectures and seminars

for us. For example, in September,

the Carrier Head of Compliance came

here to Midea Headquarters and gave

us a presentation about their compli-

ance framework, explaining the

meaning of compliance, its im-

portance, and how they developed

their structure. It was immensely

helpful for us. Later in March, we

will probably meet with the Carrier

people in Brazil to have a compliance

review of the JV there. Every interac-

tion with them regarding compliance

is a learning experience for us.

ADV: After the lectures, seminars,

and discussions, and all of the work

you and Monique have completed in the past few months, how do you feel about progress you have made so far?

Sophia: We really did start from zero. We are now in the process of drafting a company Code of Ethics, because we have

so many companies outside of China. Within that task, we are now doing a full check of each company’s situation. Then

we will decide how to proceed. One aspect we have seen with Carrier is their online, e-learning compliance program. Car-

rier is using this service successfully, so we will also adopt this service for our employees, especially for the Carrier joint

ventures and other overseas companies. To improve, more and more people at Midea need to be aware of compliance:

What is it and why is it important. So we need to educate our people about this first. This is the first step.

ADV: Thank you so much for taking the time to explain this new and important aspect of Midea’s global business. I look

forward to hearing more about it as you progress.

Sophia: Without a doubt, you will! Communication and education, this is the goal. It was my pleasure to speak with you

about it.

Appliance Compliance (cont.)



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PEOPLE Midea SNAPSHOT

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