DunAn Environment established a wholly-owned subsidiary, Wuhu DunAn Zhongyuan Autocontrol Equipment Co., Ltd., in Wuhu of Anhui province in December of 2011. DunAn Environment has invested RMB 440.72 million for the subsidiary to build a new project with annual capacity expected to be 30 million cut-off valves, 30 million liquid storages for home air conditioning compressor and 2 million integrated pipe components for home air condition system, the construction period is scheduled to be 1 year and the project is planned to put into operation at the beginning of 2013.

DunAn Environment is the leading manufacturer of traditional refrigeration components, the cut-off valve produced by DunAn occupies 40% of international market share, standing at the first place. The new subsidiary can help DunAn Environment transfer its plant to low cost area, expand its capacity and reduce costs, as well as occupy the emerging market as home air conditioner manufacture base in Anhui province by establishing supporting production base in the neighborhood to optimize its refrigeration components business distribution.