Sanhua announced to acquire stakes in Gree for no more than RMB300 million in January of 2011. As the largest customer of Sanhua, the procurement value from Sanhua accounts for 16.4% of Sanhua’s total revenue. The acquisition in Gree can help Sanhua consolidate upstream and downstream relationships as the inverter air conditioner of Gree sells well and Gree pays a lot attention to products technology.

Sanhua always pays much attention to its expansion in upstream and downstream market. In 2011, the company set up six subsidiaries successively, acquired Jiangxi Huafeng Copper and related business and assets of Germany AWECO to improve its capacity and extend its industrial chain.