BEIJING - Guangdong Chigo Air Conditioning Ltd Co, China's fourth-largest manufacturer of air conditioners, plans to grasp a bigger slice of the high-end market and further expand its global presence.
With the official launch of the world's first anti-microbial copper air conditioner on Monday, the Hong Kong-listed company announced that its growth strategy would focus on the development and sales of energy-saving, healthy and environmentally friendly products.
Li Xinghao, chief executive officer and president of Chigo, said that as the company's global expansion continues, it is vital for Chigo to build a high-quality global supply chain. The Guangdong-based company now has an annual production capacity of 10 million units, half of which are exported.
"I expect we can sell 1,000 sets of the anti-microbial copper air conditioners every month next year, both domestically and abroad, and this is just the first step," Li said.
The development and launching of the new product is in cooperation with the International Copper Association and will use copper to replace the aluminum fins in the air conditioners, based on copper's anti-microbial property.
"The natural anti-microbial property of copper was approved by the US Environmental Protection Agency in 2008 and applied in health-conscious systems and large-scale public construction," said Wenson Zheng, the association's vice-president of global R&D.
Household appliance analyst Cao Lei from Ping An Securities said that the new technology will help Chigo gain a foothold in developed markets.
Compared with other models of the same capacity, Chigo's new product can produce energy savings of up to 56 percent.
However, the advanced technology and materials within the air conditioner will increase costs to at least 1,000 yuan ($150) per set. The company said they are customized for wealthier clients.
"If we have the opportunity and the timing is right, we will merge with or acquire foreign players to expand our business overseas," said Li, who founded Chigo in 1994.
"After we listed on the Hong Kong bourse (in July 2009), our brand reputation has been greatly enhanced, especially with regard to our record-breaking energy-saving technologies," Li said.
Chigo's net profit increased 104.9 percent year-on-year to reach 278 million yuan in the first half of this year.
Its shares closed at HK$6.70, an increase of 4.85 percent, on Monday, after it announced the launch of the new product in Beijing.
Meanwhile, the Hang Seng Index lost 0.3 percent to 22639.08 on Monday, its lowest close since Oct 4.
"Though the company has ambitious plans, the path may not be smooth, given competition from arch-rivals Gree and Midea and some technological barriers set by the European Union," Cao said.
