Appliance giant Guangdong Midea Electric Appliances Co plans to issue new shares to raise money for 10 projects to increase its production capability.
Midea, China's second-largest appliance maker by market value, will issue no more than 10 percent of its total shares to raise 3.56 billion yuan (US$495.8 million), the Foshan-based company said in a statement to the Shenzhen Stock Exchange yesterday.
The money will be invested in 10 projects which will boost its production capacity of refrigerator compressors by five million sets, energy-saving refrigerators by 4.5 million sets, washing machines by 5.8 million sets and air conditioners by 9.5 million sets.
The projects include a venture with Toshiba Carrier Corp to make compressors used in appliances in which Midea will invest 309 million yuan for a 95 percent stake.
It will also invest 190 million yuan to produce air conditioners in Vietnam.
Midea reported yesterday its net profit increased 122.60 percent last year to 1.2 billion yuan. Its revenue gained 57.28 percent to 33 billion yuan.
''The company is expected to be the top brand in white goods industry depending on its financing ability, reputed brand and excellent management,'' said analyst Wu Meiping.
(Shanghai Daily February 20, 2008)
