Global leading home appliance manufacturer Qingdao Haier Co., Ltd (“Qingdao Haier”) (SSE stock code: 600690) and KKR, a leading global investment firm with US$83.5 billion in assets under management, announced the signing of a definitive agreement under which KKR will acquire a 10% stake in Qingdao Haier, establishing a long-term strategic partnership to collaborate on multiple areas. Qingdao Haier is a global market leader in home appliances. Through its forward-looking strategic vision, Qingdao Haier implemented an innovative win-win management model that aligns employee performance goals with customer’s needs. With its focus on product innovation, building a fully integrated online/offline platform and creating a highly efficient “made to order” distribution channel, Qingdao Haier has achieved high-quality sustainable growth while building a widely-respected global brand. According to the latest figures from China Market Monitor, Qingdao Haier has consistently maintained the market leadership positions in major home appliance categories such as refrigerators, washers, air-conditioners and water heaters. Commenting on their partnership with KKR, Qingdao Haier Chairman Mr Liang Haishan said, “By the end of 2012, the Company entered the crucial ’online’ strategic phase of its long-term growth plan. We welcome the world-class investment firm KKR to become our long-term strategic partner which will help us effectively execute our growth strategies. KKR’s investment is a strong endorsement of our past achievements and future potential. We believe KKR’s global resources, operational expertise and experienced local team will help Qingdao Haier to further strength its market leadership position on a global basis.” Qingdao Haier Vice Chairwoman Ms Tan Lixia added, “KKR’s ‘industrialist’ investment approach, focusing on long-term value creation, is the perfect match to Haier’s corporate culture. We believe KKR’s strong capital market expertise and deep international M&A experience will help Haier to further grow its global platform and create value to all shareholders.” Established in 1976, KKR pioneered the private equity industry and is a leading global investment firm. In its 37-year history, KKR has completed investments with over US$470 billion in total enterprise value across 25 industries. KKR seeks to combine its global resources and network with local expertise to assist its investment companies by bringing value-add beyond capital. KKR’s China efforts and team highlight this approach, as they have invested through different economic cycles and in a number of market leading companies in China.