On September 27, 2007, Midea’s holding subsidiary company-- GuangDong MeiZhi Compressor Limited and GuangDong MeiZhi Precision Manufacturing Co., Ltd. held a ceremony for celebrating the production of its 50 millionth compressor and the opening of GuangDong MeiZhi Air-conditioning Compressor R&D Center.

Midea Group and Japanese Toshiba Carrier Corporation invested and established the joint venture-- Guangdong MeiZhi with the register capital of US$ 40.3 million. Midea holds 60% of the company. Guangdong MeiZhi consists of three companies including GuangDong MeiZhi Compressor Limited, GuangDong MeiZhi Precision Manufacturing Co., Ltd. and GuangDong MeiZhi Motor Limited. The annual production capacity of Meizhi compressors is 12 million units, holding 17% of the domestic market. In 2006, the sales revenue of Meizhi compressors is RMB 3.3 billion yuan (about US$ 440 million), ranking No. 1 in China’s compressor industry. In the first half of 2007, MeiZhi Compressor has had sales revenue of RMB 2.6 billion yuan (about US$ 347 million) with a 15.73% gross profit. The export volume is more than 1 million units for the first half of 2007.

Midea Group has announced that it will invest RMB 478 million yuan (about US$ 63.7 million) in its headquarters’ comprehensive building construction. The construction project includes a strategic management and control center, IT intensive management center, finance intensive management center, Midea Central Academy and Midea Management Institute. Of the total investment, RMB 433 million yuan (about US$ 57.7 million) will be used in fixed asset investment, and RMB 45 million yuan (about US$ 6 million) will be invested in right to use land.