July 26, 2011

Haier Group and LIXIL agree to establish
a joint-venture manufacturing company in China
On July 26, 2011, JS Group Corporation’s subsidiary LIXIL Corporation and the Haier Group
officially agreed to establish a joint-venture manufacturing company in Qingdao, China. Since
September 2010, the two companies had been holding discussions to promote a joint venture withan edge in the market, with the aim of enhancing the production and sales of building materials andhousing equipment in the Chinese market, where further growth is expected in the future.
Preparations to establish the company will commence in the coming weeks. In addition to existing
plants, a new plant is scheduled to be launched next summer.
The Haier Group is engaged in the development, manufacturing and sales of home appliances as
the world’s leading white goods brand. The Haier Group is also actively engaged in theconstruction of houses, as exemplified by its participation in the establishment of a national
standard for kitchen systems in China.
The plan for the joint-venture company whose establishment has just been agreed upon between
the two companies is to start with the production of kitchen systems by taking advantage of theproduction technologies and merchandise development capabilities gained by LIXIL in Japan, andin the future, expand its range of manufacturing items into entrance doors, interior doors, sashes,etc. The merchandise produced by the joint-venture company will be sold throughout China via
LIXIL’s sales network, in addition to utilizing Haier Group’s logistics and sales networks.
On June 2, 2011, the two companies established Haier-Lixil architectural & interior design(Shanghai) Co., Ltd., a joint-venture design firm for making interior design proposals. In China,where sales of “skeleton” houses and condominiums without interior finishing (“infill”) had been
predominant, it was common for residents to do the infill work after purchasing a home. In recentyears, however, sales of infill-completed homes have been on the increase.
Haier-Lixil architectural & interior design (Shanghai) Co., Ltd. will build up design expertise andinterior standardization demand by proposing interior designs targeted at developers across China.
The demand built up in this field will be leveraged to assist the joint-venture manufacturing
company in planning and producing housing equipment for China.
The Haier Group and LIXIL will release high-quality merchandise in the Chinese market and help
popularize residential environments that are both people- and eco-friendly based on theiradvanced designing capabilities, as well as their ability to propose housing products. The HaierGroup and LIXIL also intend to promote the standardization and industrialization of housing
construction in China by proposing designing and construction methods for progressive andefficient residential environments.

Copyright(C) LIXIL Corporation.All rights reserved.

■ Profile of joint-venture manufacturing company
Company name:To be determined

Representative:

To be determined

Address of head office:Haier Industrial Park, Qingdao Economic & Technological
Development Zone, Shandong China

Capital:Approx. JPY 2,542 million (1 CNY = 13.1 JPY)

Controlling share:

LIXIL Corporation: 51%
Qingdao Haier Kitchen Facilities Co., Ltd.: 49%

Business activities:

Manufacturing of building materials and housing equipment

Number of employees:

Approx. 500 employees at time of launch (plan)■ Profile of joint-venture design firm
Company name:Haier-Lixil architectural & interior design (Shanghai) Co., Ltd.

Representatives:

Chairman: Zhou Yunjie, President: Koji Nomura

Address of head office:C4-2F, Tower 2, 774 Changde St., Jingan Dist, Shanghai City China

Established:

June 2, 2011 (date on which business license was granted)

Capital:Approx. US$4.5 million

Controlling share:

Qingdao Haier Home Integration Co., Ltd: 70%
LIXIL Corporation: 30%

Business activities:

Architectural design, decoration design, development design,
equipment design and operations incidental thereto

Number of employees:

36 employees

Copyright(C) LIXIL Corporation.All rights reserved.