Advances Fusion, February-March, 2016

Vol. 6, #2, February-March 2016, No. 56

An Acquisition for the Ages

Midea is set to buy a majority interest in Toshiba’s home appliance business

1 Advanceswww.midea.com Fusion, February-March, 2016

ADVANCES

Contents

Going Green by Turning Dessert-Serving Robots, NEWSLINE Black PAGE 9 FUSION Olympic Champions, and Profit up 21% Year-on-Year Singing Water Heaters PAGE PAGE 3 CAC Makes Its Mark in Milan PAGE 10 15-16 LittleSwan Profit up over 30% Midea the Biggest Winner at ’s Most Generous PAGE 3 Appliances Awards PAGE 17 Person PAGE 10 Toshiba and Midea Sign Brand Licensing Agreement MOU on Sale of Toshiba’s FUSION with US Giant PAGE 11 Home Appliances Business PAGE 4 Water Heaters Gain North CHINA: Tomb-Sweeping Day PAGE 18 Robotics Businesses Certification PAGE 12 Formally Open PAGE 5 Rice Cooker JV Formed in INDONESIA: Balispirit Festival PAGE 19 Four Product Categories Korea PAGE 12 Exhibited at Chicago Show : Kumbh PAGE 20 PAGE 6 PEOPLE

Divisions Lavished with Wuxi Factory’s Outstanding SPAIN: Moors & Christians International Design Awards Female Employee PAGE 13 Festival PAGE 21 PAGE 7 Midea-Carrier Announces AWE GERMANY: New Latin America CEO PAGE Walpurgichsnacht PAGE 22 8 Fridges That Give Nutrition Advice: The Brave New World of M-Smart PAGE 14

Midea Advances Newsletter is published monthly by Midea International Business. We welcome all Quote of the comments, suggestions and contributions of articles, as well as requests for subscription to our newsletter. You can reach us by email at: Month: [email protected]

Address: ADVANCES, Midea International Business Midea HQ A single arrow is No. 6 Midea Road Beijiao, Shunde, Foshan, Guangdong easily broken, but P.R.C. 528311 not ten in a bun- Web: www.midea.com/global Phone: 0086 13266591586 dle. —Japanese Proverb

2 Advances Fusion, February-March, 2016

NEWSLINE Profit up 21% Year-on-Year

By MIP

brand, with revenue of RMB 16 billion (US$2.46 billion), lead- R evenue for Midea Group Co Ltd. (000333.SZ) in ing the way in eleven product categories. Strategic cooperation 2015 was RMB 139 billion (US$22.3 billion). Earnings per share with ecommerce giants JD and Alibaba helped Midea to one of were at RMB2.99 (US$0.48) and net profit attributable to share- the most lucrative days in its history on November 11. holders was RMB12.7 billion (US$2 billion), a year-on-year in- With its stability and high dividends, Midea Group has crease of 21 percent, according to Midea‟s annual report, which proved highly rewarding to shareholders. It plans to distribute a was published March 26. cash dividend of RMB12 (tax included) for every 10 shares of Last year Midea, which has long been a highly successful all shareholders resulting in a total cash dividend payment of original equipment manufacturer, increased investment in re- RMB5.1billion, and meanwhile increase shares by converting search and development, innovation, and brand building. The capital reserves into share capital on the basis of 5 shares for gross margin ratio was 25.92 percent, up 0.46 percentage points every 10 shares. on the previous year. Market cap exceeded US$20 billion, doubling since Sep- The group maintained its status as an industry leader in tember 2013, bringing substantial long-term benefits for the several product categories. The refrigerator business pulled in shareholder. RMB 11.4 billion (US$1.75 billion), a year-on-year increase of 17 With its large integrated logistics platform, Midea scored percent; the washing machine business saw revenue of RMB 12 many major achievement in the past year, including the launch billion (US$1.84 billion), a year-on-year increase of 20 percent; of the Mission air conditioner on four continents; the establish- the small appliances business earned RMB 35.4 billion (US$5.43 ment of its first R & D center in the United States; and entry billion), a year-on-year increase of 8 percent. into the Forbes 500. In ecommerce, Midea was China‟s top home appliances

LittleSwan Profit up over 30%

By Advances

sales rose 27.38 percent. Good T he revenue of strategy and telling partner- Midea-owned washing ma- ships with giants such as Jing- chine brand LittleSwan was dong helped online sales in- US$2.02 billion in 2015, a crease 110 percent year-on- year-on-year increase of year. 21.54 percent, with profit at LittleSwan is among the most US$141 million, a year-on- valuable brands in China. The year increase of 31.65 per- company was established in cent. Due to an aggressive 1958, when it stood alone as marketing drive, sales in Chi- the first washing machine man- na reached US$1.42 billion, a ufacturer in China. It was ac- year-on-year increase of quired by Midea in 2010. 18.93 percent, while export

3 Advances Fusion, February-March, 2016

NEWSLINE

Toshiba and Midea Sign MOU on Sale of

By Midea Group Toshiba’s Home Appliance Business

About Midea T oshiba Corporation (TOKYO: 6502, “Toshiba”) and Midea Group Co., Ltd. (SZSE: 000333, “Midea”) have Midea was established in 1968 and has grown into a lead- jointly announced that they have signed a Memorandum of ing global manufacturer of consumer appliances and heating, Understanding on Toshiba‟s sale to Midea of a majority inter- ventilation and air-conditioning (HVAC) systems, with a est in its home appliance business (the “Business”). Under uniquely broad product range that includes air-conditioners, the envisaged agreement and upon completion of the transac- refrigerators, laundry appliances, kitchen appliances and various tion, the Business will continue to develop, manufacture and small home appliances. Midea had total revenues of US$23 bil- market white goods, such as refrigerators, washing machines, lion in 2014 and over 100,000 employees worldwide. vacuum cleaners and other small domestic appliances under To find out more about Midea, please visit http:// the Toshiba brand name. www.midea.com/global On December 21, 2015, Toshiba announced the “Toshiba Rebuilding Initiative”, which included the potential About Toshiba re-organization of the Business. Toshiba has subsequently carried out procedures to identify a trusted partner that would Toshiba Corporation, a Fortune Global 500 company, be committed to building on Toshiba‟s achievements to fur- channels world-class capabilities in advanced electronic and ther grow the Business. electrical product and systems into five strategic business do- Toshiba mains: Energy & Infra- and Midea have structure, Community built up a Solutions, Healthcare strong relation- Systems & Services, ship Electronic Devices & over 20 years in Components, and Life- a number of styles Products & Ser- areas, includ- vices. Guided by the ingcompressors, principles of The Basic small domestic Commitment of the appliances and Toshiba Group, inverters. This “Committed to People, proposed trans- Committed to the Fu- action will fur- ture”, Toshiba pro- ther cement and motes global opera- enhance the collaboration of two leading players with exten- tions and is contributing to the .realization of a world where sive expertise to create increased immediate and long term generations to come can live better lives. values for consumers, business partners, employees and share- Founded in Tokyo in 1875, today‟s Toshiba is at the heart holders. of a global network of over 580 consolidated companies em- Going forward, the parties will continue discussions in ploying 199,000 people worldwide, with annual sales surpassing good faith, towards a definitive agreement that is ex- 6.6 trillion yen (US$55 billion). pected to be finalized by the end of this month. To find out more about Toshiba, visit www.toshiba.co.jp/ index.htm

4 Advances Fusion, February-March, 2016

NEWSLINE

Robotics Businesses Formally Open

By Advances

G uangdong Midea-Yaskawa Service Robotics Busi- ness Ltd. and Guangdong Yaskawa-Midea Industrial Industri- al Robotics Systems Ltd. formally launched on March 1 at Midea‟s Innovation Center in Shunde, China. This came seven months after Midea signed two joint ventures with Japanese automation giant Yaskawa, the service robotics business is 60.1 percent owned by Midea and the industrial robotics busi- ness is 51 percent owned by Yaskawa.

ees. Seigo Nishikawa pledged to work hard with Midea to make the joint venture world famous. Zhen Shaoqiang promised to help Midea use its status as a globally significant manufacturer to become a world leader in smart home and automated manu- facturing technology. Sales of industrial robots in China increased from 4400 units in 2005 to 6.5 million in 2015. CEO of Guangdong Yaskawa-Midea Industrial Industri- The al Robotics Systems Seigo Nishikawa, and CEO of Guang- Inter- dong Midea-Yaskawa Service Robotics Zhen Shaoqiang at- national tended the opening ceremony along with around 50 employ- Federa- tion of Robot- ics pre- dicts that this will reach 10 million by 2017. The service robotics industry is still in its infancy. In 2014 the global industry was worth US$5.97 billion, yet by 2018 it is expected to reach US$39.4 billion. Service robots will become more affordable to middle class people in the coming years and have particularly strong potential in countries where the popula- tion is ageing and people need to be taken care of as they be- come less mobile.

5 Advances Fusion, February-March, 2016

NEWSLINE

Four Product Categories Exhibited at

By Shine Lee Chicago Show

M idea exhibited its kitchen appliances, small appli- ances, refrigerators and washing machines at the 119th annual International Home & Housewares Show in Chicago. The three-day exhibition, which concluded March 8, features more than 2,200 exhibitors from over 45 countries. These include the industry's leading brands and their cutting-edge products. New products that Midea exhibited included its smart microwaves, which come courtesy of the new Global Innova- tion Center, and the Mini Series from the Small Appliances Division.

6 Advances Fusion, February-March, 2016

NEWSLINE

Divisions Lavished with International Design Awards By Advances

t20160302_199516.shtml S everal Midea product divisions have been lavished with some of the world‟s most prestigious design awards in re- RedDot Awards cent months. Each new award helps Midea cement its place as a globally respected brand: The RedDot Award, which highlights the importance of design for business and society, is one of the top awards of its The iF Design Award kind. The German RedDot institution honored five products under Midea Residential Air Conditioning (RAC) with awards Germany-based iF International Forum Design GmbH is a on March 7, with the particularly prestigious "Best of the Best" world famous organizer of the annual iF Design Awards, which award going to the Hybrid Air Conditioner. has been accepting and judging design submissions from the world‟s best designers since the organization‟s inception in 1953. These days, annual design submissions total around 5,000, from approximately 70 different countries. Midea is a regular participant and the results for 2016 were announced in late February, revealing a rich haul of twelve sepa- rate product design awards, in addition to another for Midea subsidiary Little Swan. Midea‟s winners included the Bladeless Ceiling Fan which offers LED lighting; the Skittles Series Rice Cooker and Grill which as multi-colored design; and the LittleSwan Star Series washing machine. Hybrid Air Conditioner

Also from RAC, the designers of the “X360 Air Condi- tioner”、“OA Air Conditioner” 、“HEMNES Air Purifi- er”、and “PZ Series Air Conditioner”, were presented with awards at the same ceremony. Midea Vice President Monica Yuan told state media in China in March that "innovation is the source of corporate profitability". These awards augur well for Midea's future. The same week, Midea‟s Small Appliances Division won five awards. The winners were the Halo Series which includes kettles, rice cookers, and bread makers; the MB-WFZ4000XM induction heating rice cooker; the Mini-series of red appliances; the MY-HT5096H induction heating pressure cooker; and the Skittle Series MB-FZ4001 rice cooker. The MB-FZ4001 in particular marries the retro and the modern, bringing users back to the days of cooking with fire- You can see the full list of winners here: http:// wood. Founded in 1955 by the Design Zentrum Nordrhein www.midea.com/global/about_midea/News/201603/ Westfalen, RedDot is as prestigious as the iF.

7 Advances Fusion, February-March, 2016

NEWSLINE

Midea-Carrier announces new Latin America CEO By Nadia Mathias

products: Midea Liva and Midea Desea. "Our goal is to grow J oão Cláudio Guetter has been appointed chief executive not only in Brazil, but also in Argentina and Chile. We also aim officer of Midea-Carrier‟s operations in Latin America. Coming to expand the reach of the Midea brand in other countries in from Electrolux, where Latin America in the medium term. We are currently developing he was responsible for a growth plan for the next operations in Latin five years, which we America and the Carib- should announce later this bean, Guetter replaced year," adds Guetter. Carlos Renck on Janu- A market leader in the air ary 1. conditioner segment, Renck is still on Midea Carrier continues the board of directors to invest in its plant in and Luis Felipe Costa Manaus, with products remains CEO in Brazil. aimed at residential use, This is part of a re- and in its plant in Canoas, structuring that adapts which produces commer- to the current Brazilian cial air conditioning market, and promotes equipment. "In line with closer relations be- the company headquar- tween brand and con- ters, we will make Midea sumer. Carrier one of the major "Our segment is in- players in the market", creasingly demanding said Guetter. and we have created a João Cláudio Guetter is a structure that will bet- Mechanical Engineer who ter serve the needs of graduated from Federal our customers, in addi- University of Paraná and tion to providing more has a post-graduate degree innovative products in Economics, followed and expand the brand by a Master's Degree from also to the home appli- ISAD / University Católi- ances industry," Guet- ca of Paraná. Throughout ter told local media in his career, he led teams in Sao Paulo. different areas, such as In 2015, the sales, marketing, supplies Company recorded a and operations, both in growth of 70 percent in Latin America and the the home appliances United States, always portfolio offered in Bra- showing exceptional leader- zil, with the launch of ship with telling results. two lines of kitchen João Cláudio Guetter (left) and Luis Felipe Costa

8 Advances Fusion, February-March, 2016

NEWSLINE

Going Green by Turning Black

By Advances

A fter a recent agreement with the World Wildlife Fund (WWF), Midea observed Earth Hour by switching off all lights in its headquarter building for an hour on the evening of March 19. To celebrate Midea's cooperation with the WWF, the tour of the Heart Panda statues stopped off outside Midea's global HQ for the days leading up to Earth Hour. Midea Residential Air Conditioning (RAC) got together with The WWF to launch the Star Program at The Beijing Na- tional Convention Center on March 1. The program aims at “shooting for the stars” in carbon emissions reduction and in- spiring a trend throughout the industry.

Lucky panda

9 Advances Fusion, February-March, 2016

NEWSLINE

CAC Makes its Mark in Milan

By Advances

F ounded in 1960, Mostra Con- vegno Expocomfort (MCE) has been held biannually in Milan since 1982. It is Italy‟s oldest heating, ventilation and air condition- ing (HVAC) exhibition, and every time in- vites industry leaders from around the world. During the MCE Expo, customers can share and discuss their experiences in their

Milan Malpensa Airport

Products on show included the All DC Inverter Modular Chiller, the Medium Static Pressure

local market. Also, as the second largest city in Italy, it is a good place through which to enter one of the world‟s most difficult and sophisticated markets. Customers of MCE have high purchasing and decision-making power. Up to 75 percent of the customers can make purchases or sign contracts during

Duct, and the Wall Mounted S Panel.

Malpensa Airport

Industry leaders arriving at the exhibition had their lives made more comfortable by Midea the moment they stepped off the plane. Milan Malpensa Airport has installed air conditioning from Midea CAC. the exhibition. The equipment mainly includes Mini VRF and Needless to say, Midea Commercial Air Rooftop Packaged units and the total capacity Conditioning (CAC) was represented at the is 180 HP. This is CAC‟s first airport project in exhibition, which falls from March 15-18, Italy and one of a long line of major airport with some of its latest and best products. installations landed by Midea.

10 Advances Fusion, February-March, 2016

NEWSLINE

Brand Licensing Agreement with US Giant

By Advances

M idea has signed a brand licensing agree- ment with chemicals, fibers and plastics materials manu- facturer Eastman. This is Eastman‟s first venture into China‟s domestic market. Eastman is a global specialty chemical company that produces a broad range of advanced materials, ad- ditives and functional products, specialty chemicals, and fibers that are found in products people use every day. Many plastic products such as tableware and ba- bies‟ bottles contain the chemical bisphenol A. With the formula (CH3)2C(C6H4OH)2, it has been listed by

cooking products. Eastman‟s global sales director Randy Beavers expressed his optimism about the deal, stating that the two compa- nies have a similar attitude to social responsibility. In many markets, Eastman Tritan™ copolyester has transformed how brand owners, designers, molders and consumers think about clear polymers. By redefining toughness, Tritan adds lasting value to products. By providing a balance of clarity, chemical resistance and other market-specific performance advantages, Tritan helps differentiate products. By providing practical pro- cessing and sustainability solutions, Tritan helps bring innovations to the market.

Canada, the United States, and Norway as a banned substance for food packaging and babies‟ bottles, yet in developing countries it is still commonly found. For this reason, Eastman has created Tritan, a copolyester brand that supplies plastic products with- out the chemical. Midea‟s Small Appliances Division has used Titan as a supplier since 2014, and the suc- cess of this cooperation has led to a brand licensing agreement. Midea is now free to use the Tritan brand in advertising, web pages, promotional items, merchan- dising, displays and packaging. This will show the consumer that Midea is one of the safest suppliers of

11 Advances Fusion, February-March, 2016

NEWSLINE Water Heaters Gain Vietnam Certification

By Advances

try‟s require- R epresentatives ments. This will of Vietnam‟s Ministry of speed up the Industry and Trade have processes that awarded Midea‟s Water enable Midea to Heating Division the meet customer much sought-after CR demand. certification after carrying Midea‟s first out tests. The certification non-Chinese will significantly shorten production base test time and reduce the was built in Vi- associated import and etnam and the export procedures. country is key to Auditing experts the brand‟s carried out tests on oper- strategy in ating systems, certifica- ASEAN mar- tion compliance, manu- kets. facturing sites, and af- tersales service. The an- nual examination proved that Midea has kept up with the minis-

Rice Cooker JV Formed in Korea

By Advances

will conduct in-depth M idea has formed a US$12 million joint venture with cooperation in re- South Korean rice cooker manufacturer Cuchen, with Midea search and develop- owning a 60 percent share. Established in 1976 and entering ment, technology, and Nasdaq in 1994, Cuchen has been cooperating with Midea since manufacturing, shar- 2013. ing patented technol- The board of directors will consist of five members, three ogy along the way. from Midea, two from Cuchen, according to Li Guolin, General The rice cooker Manager of Midea‟s Small Appliances Division. The two sides industry is in some-

thing of a golden age that looks set to con- tinue.

12 Advances Fusion, February-March, 2016

PEOPLE

Wuxi Factory’s Outstanding Female Employee By Cha Meng

A t Midea Inter- national‟s end-of-year cele- brations, the world‟s most popular sport was used as a metaphor for how a good business is run. While the sales and mar- keting teams can be thought of as strikers, other positions such as legal, finance and auditing also have assigned roles. Though in football, as in life, it is normally the strikers who take the plau- dits, the “goalkeeper” of Midea‟s Wuxi factory has been the outstanding fe- male employee of 2015. Ge Fenhua is a ruthless quality control manager who lets no shoddy product get past her at Midea‟s fac- Ge Fenhua tory in central China‟s Wuxi City. Though she is just a cog in the machine, she brings an wing. She has been nicknamed “Mrs. Ge” by colleagues to fit understanding of the big picture to her work, offering well- with her gentle-natured school mistress persona. informed advice on how to improve operations and efficiency. "I will continue to work hard to uphold the concept of She reduced the installation time on her assembly line by almost quality first,” Ge said in reaction to receiving the award. two minutes through her analytical thinking, saving time and “In response to this honour, I will strive to create even money for the whole factory. greater quality. The Laundry Division will continue to be a ma- jor force in the over- all devel- Despite being a strict perfectionist, Ge is a popular and opment of Midea Group,” said Ge. friendly figure with colleagues, earning a reputation as some- You might say that 71 percent of the Earth‟s surface is thing of a Mother Goose for taking new colleagues under her covered by water. The rest is covered by Ge Fenhua.

13 Advances Fusion, February-March, 2016

AWE

Fridges that Give Nutrition Advice: The Brave

By Advances New World of M-Smart

cine, a use- M idea unveiled the next developments in its M- ful feature Smart program at the Into the Future press conference at the in countries Kerry Hotel in Shanghai‟s Pudong District on March 8. with ageing Midea‟s Chief Technology Officer Zack Hu and M-Smart R & popula- D Manager Li Qiang both gave speeches outlining the future tions. A strategy of Midea‟s smart home program. new M- “The additions required to make hardware smart are Smart mi- not simple. They require profound familiarity with the core crowave functions and users‟ needs to make the necessary upgrades. does an Using intelligent technology, the product features require an unprecedented job of making complicated processes simple for iterative upgrade,” Zack Hu told the press conference. With- the consumer, an even shows users how to make the perfect out the hardware, the intelligent software is merely a concept steamed fish. that can never be brought to life,” Zack Hu told the confer- The press conference came on the eve of The Appliances ence. and Electronics World Expo is being held at the state-of-the-art Midea‟s strengths include its large number of existing New International Expo Center in Shanghai. Midea‟s stand is users and vast product range. Becoming the “King of the operating in Hall W2 from March 9-12. World in Smart Home Technology” is central to Midea‟s long What makes M-Smart unique? According to R & D boss -term strategy. Li Qiang, in a word: centralization. Mr. Hu introduced Midea‟s Smart Air, Smart Nutrition M-Smart‟s strategy involves cloud computing, terminals, and Smart Water solutions with 22 new products which be- and open source technology. With an open software develop- tween them have nearly 30 features that were pioneered by ment kit (SDK), with an open platform for third-party cloud, Midea. Midea is establishing itself as an ecological technology leader As part of the Smart Nutrition strategy, M-Smart refrig- with M-Smart, and building an image as the Master of Intelli- erators will act as a “gatekeeper of nutrition”, it was explained. gent Hardware. Its smart technology can identify over 500 distinct images and More than 50 partners including Huawei, COFCO, IBM, its label-recognition technology boasts 100 percent accuracy. and OnStar are on board. Midea also signed a strategic coopera- There is also an intelligent medicine management system tion agreement with GM OnStar, pioneering the intelligent ecol- which provides timely reminders about when to take medi- ogy between the smart mobility of connected vehicles and smart home systems in China, which would be first seen in the latest generation Buick LaCrosse. It is also the first example of inter- connected cross-category intelligent devices in China. Up to now, Midea M-Smart has helped many smart home big players achieve open access; these include Huawei, Tencent, Xiaomi, TCL, LeTV and OnStar etc., allowing consumers to manage their household appliances more efficiently. IBM, Ali Cloud, and Amazon also formed a "Band of Brothers" alliance with Midea, so as to establish an ecosystem of household appliances and offer individualized services through- out the entire process, from operation systems to cross-category intelligent usage, to cutting-edge after-sales service.

14 Advances Fusion, February-March, 2016

AWE

Dessert-Serving Robots, Olympic Champi-

By Advances ons & Singing Water Heaters

M idea displayed its M-Smart system at the Appli- ance & Electronics World Expo (AWE) in Shanghai in March. Customers and media from around the world came to Midea‟s stand to marvel, with write-ups appearing in China Daily among other places. As the Internet of Things becomes a reality, M-Smart products offer smart air, water, and nutrition solutions. Of the 450 Midea products shown at AWE, 92 classify as M-Smart. China‟s all-conquering swimming, diving and fencing teams

Members of China’s swimming and diving team

team came to Midea‟s booth as representatives of the brand. AWE is the most important event in the Chinese

household appliance industry, of which Midea is the king. The booth created scenes to show what life will be like at all times of day in the future. All of these scenes were based on consumer needs and how to meet them seamlessly. Drawing inspiration from Germany's "Industry 4.0", last year China launched a "Made in China 2025" to comprehensive- ly upgrade its manufacturing industry. Midea being at the fore- front of this campaign, 22 new M-Smart products were unveiled along with 30 new technological features. In Kitchen appliances, there was the range of hoods with unprecedentedly efficient absorption and intelligent steam washing technology which can effectively solve the problem of Members of China’s fencing team

15 Advances Fusion, February-March, 2016

AWE Dessert-Serving Robots, Olympic Champi- ons & Singing Water Heaters (Cont.) By Advances

cleaning stubborn kitchen stains. In bedroom products, there was a fan which can modify its wind speed according to what is happening in the room. It can also be connected to Midea‟s residential air conditioners to work together. In bathroom products, there was a water heater which can play music and whose temperature can be controlled by Bluetooth, WIFI and apps. This product takes singing in the shower to a whole new level. In laundry, there was also the world‟s first front- loading washing machine with a lifting door. The “Beverly”, “The Smart Hybrid” and other smart wash- ing machines under Midea‟s LittleSwan brand are firmly at the forefront of the industry. Their ease of use (clothes can be added in the middle of a wash), and aes- thetic attractiveness (brand agreements with Disney and other Japanese robot giant Yaskawa, there were 5 Midea robots serv- family-friendly brands have been good for image), have been ing ice cream on the stand. Science fiction has never seemed so unthreatening. In the appliances indus- try, Midea is leading the way in both in- dustrial and commercial automation. It is also the first example of intercon- nected cross-category intelligent devices in China. Up to now, M-Smart has helped many smart home big players achieve open access; these include Huawei, Ten- cent, Xiaomi, TCL, LeTV and OnStar etc., allowing consumers to manage their household appliances more efficient- ly. IBM, Ali cloud, and Amazon also formed a "Band of Brothers" alliance with Midea, so as to establish an ecosystem of household appliances and offer individu- alized services throughout the entire pro- cess, from operation systems to cross- category intelligent usage, to cutting-edge after-sales service. Dessert-serving robots made possible by the new Midea-Yaskawa JV Midea is now more than just an appliances manufacturer, it is a brand that is changing people‟s lives, giving them time for the noted by visitors. things that really matter. After the recent establishment of a joint venture with

16 Advances Fusion, February-March, 2016

AWE

Midea the Biggest Winner at Appliance

By Advances Awards

2. Filter Type Air M idea picked up ten prizes, making it the biggest Purifier (Serial winner at The China Appliance Award Ceremony on March Number: KJ400G 10. At the ceremony, -B21) held at the same time 3. Electric Pressure as The Appliance & Cooker (Serial Electronics World Number: Expo (AWE) in PHT5083P) Shanghai, Midea won Vandelo Refriger- two consumer awards, ator (Serial Num- five product awards, a ber: BCD- design award, a crea- 401WGPZV) tivity award and an 4. LittleSwan Rotary appliances award. Drum Washing China‟s most Machine (Serial prestigious appliances Number: award selects 318 BVL1D120G6） nominees from the Spring Series water heaters 20,000 products dis- Design played at the AWE, including air conditioners, refrigerators, Vandelo refrigerator and washing machines, as well as audio-visual, kitchen, small, Award cleaning, environmental, health, and digital appliances. After on-site reviews by industry professionals, 185 finalists are 1. Midea IH Rice Cooker (Serial Number: MB- selected ahead of the ceremony. FZ4001) Judging by the winners, this year‟s awards particularly encouraged the development of interoperable “smart” prod- Creativity Award ucts as China attempts to upgrade its manufacturing industry. Here are the winners: 1. The Midea Bubble Robot Consumer Award (Serial Number: VBO1) 1. The Spring Series Water Heaters (Serial Number RSJ-20/100RD/120RD/150RD/180RD） Appliances 2. 2. Vandelo Freezer (Serial Number BD/BC- Award 150KSV） 1. 1. Midea Split IH Rice Cooker Air Conditioner Ev- Product Award erest Series (Serial Number: KFR-26GW/ BP3DN1Y-TA100B1) 1. Beverly Electric Water Heater (Serial Number F80-30EQ2HEY)

17 Advances Fusion, February-March, 2016

FUSION CHINA: Tomb Sweeping Day

By Advances

T omb Sweeping Day, also known as , is a day on which Chinese people honor their ancestors. Falling on April 4 this year, the festival is held to coincide with rising tem- peratures and increasing rainfall as it has its roots in agriculture. Tomb Sweeping Day became a national holiday on the Chinese mainland in 2008, it is used to visit the graves of ances- tors to pay respect. It is also customary to consume qingtuan, green dumplings made of and barley grass.

Origins

The festival originated from the Cold Food Festival year, on Qingming. ("Hanshi Festival"), established during the Spring and Autumn

Period (771-476 BC). Duke Wen, ruler of the state of start- Activities ed it to honour his retainer Jie Zitui, who had loyally followed him during his years of exile. According to legend, Jie once Young and old pray before the ancestors, sweep the even cut meat from his own thigh to provide the duke with tombs and offer food, tea, wine, chopsticks, joss paper acces- soup. Once he was enthroned as duke, however, Jie considered sories, and/or libations to the ancestors. Some people carry his services no longer required and resigned. Jie moved into the willow branches with them on Qingming or put willow forest with his mother. Duke Wen went to the forest in 636 BC branches on their gates or front doors. They believe that wil- but could not find them. He ordered his men to set fire to the low branches help ward off the evil spirit that wanders on forest in order to force Jie out. When Jie and his mother were Qingming. killed instead, the duke was overcome with remorse and or- On Qingming, people go on family outings, start the dered three days without fire to honor Jie's memory. The city spring plowing, sing, and dance. Qingming is also a time when erected over the former forest is still called (lit. "Jie's young couples traditionally start dating. Another popular thing rest"). to do is to fly kites in the shapes of animals or characters from The present importance of the holiday is credited to the Chinese opera. Another common practice is to carry flowers Tang Emperor Xuanzong. Wealthy citizens in China were re- instead of burning paper, incense, or firecrackers. portedly holding too many extravagant and ostentatiously ex- Traditionally, the family will burn spirit money and paper pensive ceremonies in honor of their ancestors. In AD 732, replicas of material goods such as cars, homes, phones and Emperor paper servants. In Chinese culture, it is believed that people Xuanzong still need all of those things in the afterlife. Then family mem- sought to bers take turns to kowtow three to nine times (depending on curb this the family adherence to traditional values) before the tomb of practice by the ancestors. The Kowtowing ritual in front of the grave is declaring performed in the order of patriarchal seniority within the fami- that such ly. After the ancestor worship at the grave site, the whole fami- respects ly or the whole clan feast on the food and drink they brought could be for the worship either at the site or in nearby gardens in the formally memorial park, signifying family reunion with the ancestors. paid only

once a

18 Advances Fusion, February-March, 2016

FUSION INDONESIA: Balispirit Festival

By Advances

T here was a time when people went to music or cul- tural festivals, went wild, and then needed weeks to recover from the madness. Like the growing Wanderlust festival, BaliSpirit is a relatively new phenomenon, a festival where you are built up rather than burnt out. With health and wellness presenters from around the world (and participants from more than 50 countries), Balispirit aims to inspire and energize peo- ple as well as bring them together. Looking beyond sex, drugs and rock „n‟ roll, BaliSpirit is a poster child for a new generation of festivals for the rapidly growing holistic travel marketplace. It is an experience that will tred at Bedulu, just to the east of Ubud. A great flowering of engage all six senses as Ubud Town has done for centuries. Balinese culture followed. In 1900, Ubud became a Dutch protectorate at its own History of Ubud request, and the colonialists interfered little, allowing the tradi- tional arts and culture of the area to remain relatively un- Put on the map by Eat, Pray, Love author Elizabeth Gil- changed. The modern era of Ubud perhaps began in the bert, Ubud has a known history back to the eighth century, 1930s, when foreign artists were encouraged by the royal fami- when the Javanese Hindu priest Rsi Marhandya came to Bali ly to take up presence in the town. From their Ubud base, the from Java, and meditated at the confluence of the nearby Wos likes of Walter Spies and Rudolph Bonnet were instrumental rivers. A shrine was established and later expanded by Nirartha, in promoting an understanding of Balinese art and culture the Javanese priest who is regarded as the founder of Bali's worldwide. From the 1960s onwards, travellers started to ar- religious practices and rituals as we know them today. At this rive in earnest, mostly intrepid types as the infrastructure was time the area was a centre of natural medicine and healing, still primitive. “Ubad” is ancient Balinese for medicine. Further temples and monasteries were established over The Festival the next 400 hundred years. Many of the dances, drama and rituals still practiced in Ubud today, originated at this time. The goal of the BaliSpirit Festival is to awaken and nour- The Javanese Majapahit kingdom conquered Bali in 1343, ish each individual‟s potential for positive change within, lead- and the key final victory was against the Pejeng Dynasty cen- ing to positive change in homes, in communities, and around the world. Through the beneficial and inspirational traditions of , dance, and music, the BaliSpirit Festival illustrates the Balinese Hindu concept of Tri Hita Karana: living in harmony with our spiritual, social, and natural environments. The founders of the BaliSpirit Festival provide financial, logistical, and organizational support to local charities, with a special emphasis on children‟s programs, multicultural educa- tion and performance, healthcare, HIV& AIDS awareness, and environmental conservation in Bali and greater Indonesia. This year‟s festival, held from March 29-April 3, will include dance and martial arts, self-development and seminars, and top musicians from around the world.

19 Advances Fusion, February-March, 2016

FUSION INDIA:

By Advances

K umbh Mela is a mass Hindu pilgrimage of faith in which believers gather to bathe in a sacred river. Traditionally, four fairs are widely recognized as the Kumbh : the Kumbh Mela, the Kumbh Mela, the Nashik-Trimbakeshwar Simhastha and the Simhastha, although priests at other places have also claimed their local fairs to be Kumbh Melas. These four fairs are held periodically at one of the four places by rotation. The main festival site is located on the banks of a river: the () at Haridwar; the confluence (Sangam) of the Ganges and the Yamuna and the mythical Sar- after the -Asura war, which went on for quite some time, asvati at Allahabad; the Godavari at Nashik; and the Shipra at both the involved parties came to a conclusion that instead of Ujjain. Bathing in these rivers is thought to cleanse a person of fighting, they should come together and churn the milky ocean to obtain the Elixir. The sea was churned and elixir was ob- tained but it was not meant for the Asura or the demons, hence the god who appeared from the sea with the Kumbh or the pitcher of elixir ran from the chasing Asuras. In this chase a few drops fell on earth and now at these four places the Kumbh Mela is conducted. Though all Kumbh Melas enjoy similar numbers of dev- otees, the name of Haridwar comes at the top of all Indian pilgrimages. Hence the Kumbh Mela of Haridwar enjoys ex- ceptional media coverage and tourist traffic. The place is all sins. termed as the gateway to heaven in Hindu mythological scrip- At any given place, the Kumbh Mela is held once in 12 tures. years. This year‟s Kumbh Mela is in Ujjain, and lasts until April The major event of the festival is ritual bathing at the 30. banks of the Rivers have always held a special place in Hindu mytholo- river. Other gy, as these are considered to be the carriers of life and fertility. activities include Hence they have always been central to major festivals in India. religious discus- The Kumbh Mela. This fair is perhaps the largest religious sions, devotion- gathering in the world. A vast number of people gather at dif- al singing, mass ferent places and perform rituals on this day by the banks of feeding of holy different rivers. "Kumbh" means a pitcher or a pot, the word men and wom- Kumbh also signifies a Hindu sun sign, Aquarius. The word en and the poor, Mela means a fair or a gathering. and religious During the festival the banks of India‟s holy rivers be- assemblies come a large bathing ground for the rich, the poor, sadhus where doctrines (holy men) and women alike. For each place the Kumbh Mela are debated and standardized. Kumbh Mela is the most sacred repeats every 12 years, but in actuality the four sites celebrate it of all the pilgrimages. every year. The Myth behind the celebration of Kumbh Mela is that

20 Advances Fusion, February-March, 2016

FUSION SPAIN: Moors & Christians Festival

By Advances

T he Moors and Christians Festival (Spanish: Moros y Cristianos) commemorates the battles that took place between the Moors and Christians during the Reconquista from the 8-15th Centuries. The battle reenactments take place throughout Spain but primarily in the southern part of the Valen- cian Community and in Alicante. The most popular Moors and Christians festival takes place in the city of Alcoi, Valencia from the 22-24 April. This date coin- cides with another popular festival in Valencia and Cat- alonia known as Saint George‟s Day, or Sant Jordi. Leg- end has it that when James I of Aragon re-conquered the city from the Moors, the Moors were frightened ous groups that make up the Moorish and Christian armies march in procession, desperately trying to out- shine each other‟s‟ sumptuous costumes. This four century-old festival is one of Spain‟s biggest and in certain cases, such as that of Alcoy, over 5,000 people take part in the procession. Another part of the festivities are the religious ceremonies held in honor of Alcoy‟s patron saint. Another special moment is the spectacular final battle. It follows the so-called "embajadas" (meeting of envoys) in the castle, in which each side reads a text in an attempt to per- suade the other side to surrender. Once negotia- tions have failed, a mock battle ensues in which thousands of kilos of gunpowder is used, ending in victory for the Christians.

away from re-attacking the city when Saint George appeared before them. The Moors and Christians Festival begins with the shot of gunpowder and is filled with medieval music, fire- works and many other events. The festival culminates when the Christians reenact a battle around the castle in which they overthrow the Moor invaders. Beginning in the early hours of the morning, the streets, balconies and windows fill with people intent on not missing a single thing. To the accompaniment of music and with all the pomp and majesty you could hope for, the vari-

21 Advances Fusion, February-March, 2016

FUSION Germany: Walpurgisnacht

By Advances

W alpurgisnacht, known in English as Walpurgis Night, is believed to be the night of a witches' meeting on the Brocken, the highest peak in the Harz Mountains, a range of wooded hills in central Germany between the rivers Weser and Elbe. It falls on the night of April 30, the Eve of Saint Walpur- ga day. Born and educated in the south of England, Saint Wal- purga (710–25 to 777 or 779) travelled with her brothers as a missionary to Francia (now Württemberg and Franken). She helped spread Christianity throughout what was then a mostly pagan central Europe. Because of her rigorous training, she was able to write her brother Winibald's vita and an account in Latin of his travels in Palestine. As a (Burning of the Witches), which sees huge bonfires lit all over result, she is often called the country (including on Petřín hill in Prague) and an effigy of the first female author of a witch thrown onto the pyres. Old brooms are also burnt and both England and Ger- there‟s partying through the night. many. Sweden, too, has a few witches in the broom closet. Traditionally, frightened Here, the celebration is known as the Feast of Valborg and is peasants used to hang nowadays treated more as a spring welcome than a time of crosses and herbs on sta- witches, being marked with bonfires and choral singing across ble doors to protect their the country. The largest celebration is in Stockholm‟s Skansen livestock on Walpurgis- open-air museum, where a festive concert runs from mid- nacht; ringing church afternoon to around midnight. In Gothenburg, students from bells or cracking whips the Chalmers University have for the last century conducted were other ways to pre- the Cortège parade, with floats showing mock scenes from vent stray witches from major events over the past year. More than 200,000 people line dropping by. Today, how- the streets to view the parade. Walpurga ever, people come to be with the witches as they recount the year‟s evil deeds, not to escape them. One of the best places to celebrate Walpurgisnacht is the town of Thale, where not-so-pagan hordes of 35,000 or more arrive for colourful variety events and the Walpurgishalle muse- um tells you all you need to know about sacrifices, rituals and local myths. People dress as witches and toss away all reserve as they dance around fires. Wherever you are, expect to see the dawn in with some very strange characters! If it wasn‟t enough that one mountain should claim to be haunted, there are other such Walpurgisnacht events elsewhere in Europe. In the Czech Republic the local variation is Carodejnice

22 Advances Fusion, February-March, 2016

SNAPSHOT

Walking on the Wild Side: Midea

Links up with the WWF

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