Midea Kitchen Appliances DivisionKA Company Introduction

2013.08.18

Midea Group Profile

Founded in 1968, the group is located in Shunde, Guangdong Province, China

One of the largest household appliance production bases in China. Achieved 140 billion

RMB overall sales revenues in 2011 including $6.3 billion US dollars in overseas sales

170,000 global employees, including 21,000 management professionals

Total Asset holdings equal 105.7 billion RMB, Net Asset worth 29.8 billion RMB

15 manufacturing bases consisting of 7 million square meters

of operational space

As of June 2011, Midea Group donated over 500 million RMB to social welfare and

educational programs

Recognized as China’s most valuable brand in 2012. Midea’s brand image has an

estimated market value of 61.12 billion RMB (sixth overall)

Midea Group Structure

Strategy & Planning

Strategy & Planning

Admin & HR

Admin & HR

Auditing Dept

Auditing Dept

Technology& Quality Dept.

Technology& Quality Dept. FinanceFinance ITIT LegalLegal

Residential A

C D

ivisionR

esidential AC

Division

Com

mercial A

CD

ivisionC

omm

ercial AC

Division

Refrigeration D

ivisionR

efrigeration D

ivision

LaundryD

ivisionLaundryD

ivision

Dishw

asher D

ivisionD

ishwasher

Division

Environm

ental Appliances

Environm

ental Appliances

Water H

eating Co.

Water H

eating Co.

Lighting Appliance C

oLighting A

ppliance Co

Board of DirectorsBoard of Directors

Executive CommitteeExecutive Committee

Kitchen A

ppliances Division

Kitchen A

ppliances Division

Sm

all Dom

estic Appliance

Co.

Sm

all Dom

estic Appliance

Co.

Com

pressor Appliance C

o

Com

pressor Appliance C

o

Motors A

ppliance Co

Motors A

ppliance Co

International (MID

) International (M

ID)

Midea Kitchen and Electrical Appliances Division

Kitchen Appliances Division Structure

Kitchen Appliances DivisionKitchen Appliances Division

Operations and

Human Resources Dept.

Operations and

Human Resources Dept.

Financial Management

Dept.

Financial Management

Dept.

Overse

as S

ale

s &

Marke

ting C

om

pany

Overse

as S

ale

s &

Marke

ting C

om

pany

Dom

estic S

ale

s &

Marke

ting C

om

pany

Dom

estic S

ale

s &

Marke

ting C

om

pany

Micro

wave O

ven

Com

pany

Micro

wave O

ven

Com

pany

Cookin

g A

pplia

nce

s C

om

pany

Cookin

g A

pplia

nce

s C

om

pany

Vacu

um

Cle

aner

Com

pany

Vacu

um

Cle

aner

Com

pany

R &

D C

ente

rR

& D

Cente

r

Industria

l Desig

n

Dept.

Industria

l Desig

n

Dept.

Supply

Chain

M

anagem

ent D

ept.

Supply

Chain

M

anagem

ent D

ept.

Quality

Managem

ent

Dept.

Quality

Managem

ent

Dept.

Midea Cooking Appliances Company

Midea Cooking Appliances Company

HR DepartmentHR Department Finance Department

Finance Department

R&DR&D

Engineering Engineering

Purchasing Departm

entPurchasing Dep

artment

Quality C

ontro

l Departm

entQ

uality Contro

l Departm

ent

Sterilizing C

abin

et P

roje

ctSterilizing

Cabin

et P

roje

ct

Inte

gra

ted

furn

iture Project

Inte

gra

ted

furn

iture Project

Wuhu B

ase

Wuhu B

ase

Shunde Base

Shunde Base

Structure

Sales Growth

Cooking Appliances Business growth 2008 to 2012

As a subsidiary of Midea Group Kitchen Appliances Division, the Cooking Appliances Company is a modern enterprise specializing in research & development, as well as the production of a range of ovens, hoods, gas hob, sterilizing cabinets and integrated kitchen furnishings. Midea products are sold throughout the United States, Europe, the Middle East, Australia, South America and other countries and regions. Midea has two production bases in Shunde and Wuhu China.

Midea has a research and development department as well as manufacturing and quality control system. It has an annual production capacity of producing 1.5 million ovens/ranges, 3 million hoods and 4 million gas hobs. Relying on strong marketing capabilities and Mideas positive brand reputation, the company aspires to be the world's most competitive kitchen appliances supplier.

FS cooker Hood Gas hob BI oven Induction Cooker

Overview

No. Historical Memorabilia Time

1 Midea hoods and gas hob went public. 1999.06

2 Midea hoods and gas hob awarded the title of " Guangdong Famous Brand Product". 2003.03

3 Midea hoods and gas hob awarded the "China energy-saving and environmental protection product certification". 2004.04

4 Sterilizing cabinet awarded the title of " Guangdong Famous Brand Product". 2005.03

5 Entered the oven industry. 2007.04

6 Midea stove top ranges awarded the title of " China Famous Brand Products". 2007.04

7 Imported enamel line. 2007.128 BI oven in MP. 2008.01

9 Wuhu hoods factory operation 2010.09

10 Midea gas hob testing and evaluation center approved by the "National CANS laboratory". 2011.09

11 Integrated ovens/range, hoods, gas hob, sterilizing cabinets and kitchen cabinet into a Cooking Appliances Company. 2012.09

12 Combine electric hob into Cooking Appliances Company 2013.08

History

Financial management

Strategic management

Human resource management

Business support management

IT management

Operational systems (6,3), as well as two (2) portals and integrated technology platforms to push the

establishment of end-to-process framework and sharing of products, materials, customers, suppliers,

financial plans and other data standardization.

R&DR&DMarketMarket PlanningPlanning procurement

procurement

manufacturing

manufacturing salessales serviceservice financefinance

MIP Uniform standard platformMIP Uniform standard platform

MDPIntegrated Platform

MDPIntegrated Platform

PLM APS SRM ERP MES CRM

FMSFMS

HRMSHRMS

BIBI

Information technology project -632

Esquisite Black tempered glass kitchen unit, with dynamic light control

functions. Manufactured with high-quality aluminum handles. This elegantly

designed kitchen unit is the essence of quality!

Six-PieceMagic Kitchen Kit

Product Portfolio

Optional

Presented these as a in-house kitchen Environment

Overall Combinations

Titan Suit

F1 F2

Kitchen Integrated Solution

Overall Hood+Hob+Oven MWO+Oven F3 Compact Oven +Oven

F4 Ceramic +Oven C.M.F Function

Contents of Folding

Old Layout | Features for reference

Silver Award included

Industrial Design Company has become a professional, international team, which can complete all des

ign aspects from “Concept to production”. We are committed to providing high-quality products for cus

tomers and consumers both home and abroad. Our design concepts and innovation have won various in

ternational design awards. Midea Industrial design company has gradually become one of China’s top de

sign leaders. In the future, we will continue to innovate and develop, cutting edge products with the ai

m of becoming a world-class design team.

70 domestic designer + 7 South Korea/USA/Italy expert

Industry Design

The research and development department is directly under the control of the Cooking Appliances Compa

ny. This enables it to undertake planning and product development and establish, standards and guidelines f

or procurement, manufacturing and quality. R&D consists of 10 sub-sections which are directly responsible f

or technology, research, product development, logistics support and internal management.

Basic T

EC

H Resea

rch Team

Basic T

EC

H Resea

rch Team

Departm

ent O

f SA

ME Big O

venD

epartm

ent O

f SA

ME Big O

ven

Team

Of

European Big Ove

n

Team

Of

European Big Ove

n

Team

Of

Overseas Cooker

Hood

Team

Of

Overseas Cooker

Hood

Team

Of

Domestic Cooker

Hood

Team

Of

Domestic Cooker

Hood

Team

Of

Overseas H

obTeam

Of

Overseas H

ob

Team

Of

Sterilizing C

upboard

Team

Of

Sterilizing C

upboard

Italia

n R

&D

Team

Italia

n R

&D

Team

Techanical Supportin

g T

eam

Techanical Supportin

g T

eam

Team

Of

Domestic H

obTeam

Of

Domestic H

ob

R&DR&D

Modena, Italy

R&D team

The R&D Centre employs more than 20 foreign technical experts, 4 domestic university professors and about 240 R & D

technical specialists, including 4 national senior engineers,1 nationally registered quality engineer and 35 workers that

possess masters and doctorate degrees. Furthermore, our staff is also comprised of professional dieticians .

R&D professionals

Experience

To implement the spirit of the Division transformation, promote and encourage the spirit of technological innovation,

R&D carries out frequency conversion technology, electronic technology, energy efficiency technology, sensor technolo

gy, CFD simulation technology, finite element analysis, thermal design, materials technology, wind tunnel technology an

d other core technologies around the direction of the energy-saving, environmental protection, intelligence and so on, d

eveloping innovation and research constantly to achieve industry-leading level. High-temperature steam cleaning techn

ology has passed the national certification authority.

R&D has applied for 91 patents totally in 2012, 26 of them are appearance patents, 53 are utility model patents, the r

est 12 are invention patents, the patents quantity climbs steadily within 3 years.

Efficiency

Huge air-flow

Boost burner

Easy to clean

high-temp self-cleaning

steam wash

Intelligent control

inverter control

Intelligent fire +Move pan, fire burn down +10% efficiency

R&D Innovation

Information Construction

Order driven

Process analysis

Statem

ent optim

izationM

ulti-language upgrade

ERP

ERP leads the core information management model. It encompasses four information platforms for suppli

ers ( SCM ), in both domestic and foreign markets ( CRM , OSM ), it also contains manufacturing procedures ( M

SS ), which run through various dimensions of information management systems. These core areas involve qual

ity, logistics, research and development, investment and integrated office operations to provide strong support.

Midea strives to keep science and technology as the driving force and believes in quality as the driving force. Midea

employs numerous qualified professionals, which conduct rigorous research and development, meticulous quality control a

nd sales service support.

Midea has been awarded various Integrated Management System Certifications (ISO90001, ISO140001, OHSAS18001, QC

080000). Our Cookers, hoods and kitchen sterilizing ccabinets have also obtained a national “Gas Appliance Production Lice

nse”as well as a Disinfectiant hygiene certificate

Midea products have achieved domestic and international certifications (CE, CB, GS, RoHS, EMC, CCC).

The company has excellent after-sales support and is committed to providing consumers with excellent quality service.

IECQ-HSPM QC080000ISO90001 、 ISO140001 、 OHSAS1800

1

System construction

Currently Midea is in cooperation with many certification authorities, including CCC in the domestic mar

ket and Gastec, SGS, TUV Rheinland, BV, DEKRA. As a result Midea has been awarded numerous other

certificates such as CCC, CB, CE, GS, SAA. These certificates are accredited SGS gas laboratories.

On-site test On-site test On-site test On-site test On-site test

Testing Center

Midea cooking performance lab evaluate product by using scoring card (color, temp…) to ensure product

meet market demand during new product development. And also develop new menus for new products.

Standard we are using: EN50304-EN60350-2009

Cooking performance

Midea gas lab can evaluate thermal load, burning

status (including: flame stability, yellow flame, analysis of

carbon, carbon monoxide, nitrogen oxides, etc.), electric

ignition performance, safety devices performance,

performance and other professional testing laboratory.

Major equipment: gas leakage detectors, flue gas

analyzer (Siemens, TESTO, Germany), wet gas meter

(Shinagawa, Japan), data logger, etc.

Wet gas meter Flue gas analyzer

Standard we are using: EN 30-1-1 2008/BS EN 30-2-1/BS EN 30-2-2NAG312 NBR 13723-1 NTE INEN22590 NCH 927- 1

Gas performance

The domestic largest life test lab for gas product

with capacity-90 units products test at the same time. To

evaluate reliability of Midea gas products.

For finished goodsFor components

Gas life test

Midea gas distribution stations equipped with automatic continuous control of gas distribution system to

prepare a variety of test gas mixtures. Simultaneous preparation of two different gas mixtures, which has

a high accuracy gas distribution, gas distribution variety, ease of operation, output pressure stability, high

degree of automation. Its Wobbe index meet the national standard CB/T13611, European standard EN437

standard requirements.

Source mixture: G110; G112; G21; G222; G23; G24; G25; G26; G27; G231; G1.250; G1.251; G1.252; G271;

G25.1; G26.1; G27.1; G2.411; G2.412; G2.350; G2.351; G2.352; G2.300; G2.301; G2.302

automatic continuous control system

Gas distribution station

To evaluate safety and functions of oven and hood, mainly concern temp rise, air/smoke isolation efficiency, energy efficiency, abnormal test etc…Major equipment: data collection instrument (USA Agilent), temperature logging devices (Yokogawa), energy efficiency brick, ERP tester.Standard we are using: BI oven: IEC/EN60335-1; IEC/EN60335-2-6; EN60350Hoods ： IEC/EN60335-1; IEC/EN60335-2-31; IEC60591

Remark: EN for European products and IEC for SA products

Electric performance

To evaluate liability of Midea electric products and spare

parts by thousands circles test.

For finished goods

For components

Electric life test

The equipment can reach temp range 85 ℃ --- -30℃ ， humidity 95% to evaluate products performance in various environment.

Environment Lab

To evaluate packaging protection through vibration/stack/drop test

Packaging

With advanced international hardware and software facilities, high speed precision CNC machine centers,

wire cutting and mirror computer spark machines; the company retains a full set of nearly one hundred adva

nced modeling and testing equipment. Such machine technology has enabled Midea the ability to manufact

ure continuous large-scale mold and high-end plastic injection molds. Such machine integration has enable

Midea to convert industrial design, R&D and design appeal into producing high quality products.

Mold manufacturing

Shunde sheet metal processing factory has 180 empl

oyees, mainly producing core component for oven,

hobs and hoods by using punching, welding and CNC

etc. core technologies.

It has industry-leading equipment and technology

machines with more than 50 imported punching

machines with 60-600 ton capacity, domestic advanc

ed CNC (1 CNC punching machine, 1 CNC shearing m

achine, 7 CNC bending and 2 CNC rough shape cuttin

g lines), production equipment, 2 semi-automatic cav

ity welding production lines and advanced cavity cu

rling technology. The capacity is 2 million units per

year.

Shunde sheet metal processing factory has 180 empl

oyees, mainly producing core component for oven,

hobs and hoods by using punching, welding and CNC

etc. core technologies.

It has industry-leading equipment and technology

machines with more than 50 imported punching

machines with 60-600 ton capacity, domestic advanc

ed CNC (1 CNC punching machine, 1 CNC shearing m

achine, 7 CNC bending and 2 CNC rough shape cuttin

g lines), production equipment, 2 semi-automatic cav

ity welding production lines and advanced cavity cu

rling technology. The capacity is 2 million units per

year.

Metal Processing Factory

Shunde Base

Shunde painting factory produce enamel and

powder painting processes .

It has industry-leading equipment and technology:

including two importer enamel lines and one Germany

imported spray line. The Spray line has a powder roo

m designed by Germany’s Wagenaer. The enamel line

has a pre-treatment line designed in the United States

KMI and the dry powder line are designed by Nordson,

USA. Another enamel line has robot cavity automatic

spraying line capabilities designed by Germany Lyike

and the firing furnace designed in Turkey. Annual

output is 2 million units.

Painting Factory

Shunde Base

Shunde factory assembly factory has 1000 emp

loyees , mainly specializing in assembling

ovens, ranges and hoods.

It has industry-leading equipment and technolog

y: Including 12 push-pull production lines and 1

CKD/SKD line, automatic dispensing lines, auto

matic marking machines, automatic stacking ma

chine etc.The average single-shift output of ove

ns is about 800 units, the anual output is about

1,000,000 units . The average single-shift capac

ity of gas hob is about 1500 units, the anual pro

duction capacity is about 2 million units.

Assembly Factory

Shunde Base

Metal sheet factory

362 employees, mainly producing hoods.

It has industry-leading equipment and technology: with more

than 50 imported units capable of holding 60-600 tons.

It also has domestic advanced CNC (1 CNC shearing machine,

2 CNC bending and 1 CNC rough shape cutting line )production

equipment, 1 automatic production line, 2 industry-leading

storage welding box production lines. Additionally it also has the

industry’s leading automatic laser welding production

line(German KUKA robot + Han’s laser ), a pulsed laser

automatic welding spray line designed in the United States.

Moreover, the workshop also owns imported equipment from

Nordson Corporation and automatic spray gun as well as a

spray paint line designed in France and imported equipment

designed by Purcell.

Wuhu Base

One of the final output models in Wuhu’s factory cooker and kitchen exhaust hood assembly shop. This shop epitomizes the key manufacturing sector yielding on-site quality, and efficiency . The shop mainly produces cookers and hoods. This is in addition to manufacturing Chinese cookers and kitchen exhaust hoods, European style cookers and kitchen exhaust hoods. The assembly and manufacturing workshop has industry-leading automated production lines and automatic conveyor belts, part assembly lines, automatic code printers and 2 viscose lines. The average single shift output is 5000 units, and the annual output is 1.8 million units. The management business model mainly consists of institutionalized production principles which adhere to lean logistics concepts in addition to high-end production assembly.

Assembly shop

Wuhu Base

The Cooking Appliances Company logistic plans are guided by a pull production concept in which the delivery distance

is shortened . This is accomplished by reducing on-site materials management issues through logistics simplification and

container standardization. Additionally, logistics response will be enhanced through the use of automated transportatio

n solutions. Thus, reducing transport distance by just-in-time production and layout optimization so that it can minimize

personnel intervention.

Internal overall management serves for production!

Track OrganizeSelect ManufactureInspect Store Transport Ship

Logistics

The Cooking Appliances Company warehouse supplies front-e

nd materials while utilizing just-in-time logistics concepts. Thus,

reducing occupied areas and raw material inventory to to

achieve lean objectives. Concurrently, finished products wareho

using integrates foreign an domestic sales market demands

while centrally allocating three industrial zones to achieve minim

um inventory and maximum transportation requirements.

Warehouse

Midea Cooking Appliances Company has successively used LED lighting throughout various offices and p

roduction lines. It has resulted in energy consumption savings of 210000 KW and approximately in 30,000

USD savings each year.

Production line using LED lights (11W)Production line using LED lights (11W)

Energy saving

Stable employee, stable quality

Midea Culture Club is an employee organization that is devoted to worker’s well being. Throughout these years, various company functions are organized to promote employee wellness, moral and overall sense of belonging. Such activities include sports and other social functions.

Employee

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