Final Report Hong Kong, July 2016

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Final Report Hong Kong, July 2016 China International Trade Fair for Heating, Ventilation, Air-Conditioning, Sanitation & Home Comfort Systems New China International Exhibition Center Eric Chan Tel. +852 2238 9972 eric.chan@hongkong.messefrankfurt.com www.messefrankfurt.com www.ishc-cihe.com ISHC & CIHE 16_PR5_Eng celebrated its 20 th anniversary with recordbreaking exhibitor and visitor figures State-of-the-art intelligent HVAC technologies from leading worldwide brands were displayed Over 70 concurrent events revealed industry trends and stimulated idea exchange The 20 th edition of China International Trade Fair for Heating, Ventilation, Air-Conditioning, Sanitation & Home Comfort Systems, held from 30 May 1 June 2016, ended with record-breaking results. Renowned as the most influential HVAC exhibition in Asia, the show was attended by leading brands from around the world that occupied all eight halls spanning across 95,000 sqm (2015: 90,000 sqm) of the New China International Exhibition Center in Beijing. The fair was organised by Messe Frankfurt (Shanghai) Co Ltd and Beijing B&D Tiger Exhibition Co Ltd. The three-day event welcomed a record-breaking 1,128 exhibitors (2015: 1,119) from 21 countries and regions. Intelligent control, building technology and home comfort systems were added to the existing exhibit of wall-hung boilers, heat pumps, renewable energy, radiators and accessories, heat exchangers, floor heating, pipes and fittings, valves, fresh air purification systems, ventilation systems, control systems, heat meters and energy-saving products. These cutting-edge products and technologies attracted 52,128 visitors (2015: 46,836) from 41 countries and regions, a 11.3% increase from the previous edition. The top 10 visiting countries and regions included Korea, Russia, Italy, Japan, Hong Kong, Taiwan, Mongolia, the USA, Germany and Ukraine. Messe Frankfurt (HK) Ltd 35/F China Resources Building 26 Harbour Road, Wanchai Hong Kong

Mr Richard Li, General Manager of Messe Frankfurt (Shanghai) Co Ltd, was pleased with the impressive results and commented: Intelligent HVAC is one of the main themes of this year s show. Going intelligent is definitely the market trend now. This momentum is further fuelled by the Chinese government s emphasis on energy efficiency. Many exhibitors introduced the latest intelligent HVAC products and solutions utilising IoT technologies to meet market needs. Moreover, professional buyers expressed high interest on ventilation systems and heat pump solutions, we foresee the huge potentials of ventilation and heating/cooling technologies in buildings. will stay close to the market trends and continue to serve as a great tool that helps participants reach key industry contacts and grow their businesses. I am thrilled to have encountered many satisfied buyers and exhibitors over the course of the three-day fair. Echoing this statement, Mr Li Hongbo, General Manager of Beijing B&D Exhibition Co Ltd, said: As usual, always yields remarkable results. Products ranging from innovative intelligent HVAC technologies to energy-efficient heat pumps were perfectly presented. I am pleased to have encountered many satisfied show participants during the fair. With the continuous support of our overseas and domestic industry partners, I am confident that ISH China & CHIE will continue to grow and serves as a first-tier trading platform for HVAC products. State-of-the-art intelligent HVAC technologies from leading worldwide brands were displayed With increasing demands for intelligent products and new environmental protection policies launched by the Chinese government, the HVAC industry is welcoming ample business opportunities for manufacturers and suppliers. Exhibitors at the 2016 show, appropriately themed Intelligent HVAC, were able to explore the opportunities the industry has to offer. Page 2

This year, KNX International participated in ISH China & CHIE for the first time and hosted the KNX Technical Seminar with the theme The Technology and Application for KNX Home and Building Control KNX IoT City. KNX International member, Schneider Electric (China), was an exhibitor at the fair. Mr Henry Zhou, Senior Marketing Manager of the company, stated: The popularity of Intelligent HVAC technologies and products is huge in China. With the country's middle-class becoming wealthier, residents are demanding higher-quality products to satisfy their needs for comfortable living, including energy-efficient heating, smart controls, ventilation, air conditioning and security systems. KNX wants to increase its influence in China s intelligent HVAC market and explore more customers through. Another exhibitor, Mr Allen Liang, Public Relations Officer from Midea Group, said: Emissions and haze issues are the top two environmental concerns of the Chinese government. Midea is committed to producing energy-efficient and low-emission HVAC products. This year, we introduced a new line of products to the market that pair with our latest environmental and energy-saving technologies. Midea not only develops products in accordance to government policies, but also to demonstrate the company s dedication to and initiative for protecting the environment. In addition, Mr Shi Yujun, General Manager of Guangzhou Devotion Domestic Boilers Manufacturing Co Ltd, noted: By combining Internet Plus concepts and informationalisation, we aim to provide consumers with a more convenient and comfort home experience. ISH China & CIHE is an efficient platform that develops in line with market demands and our company has benefited immensely from our decision to participate in the show this year. Page 3

The green HVAC market is growing along with the development of building energy efficiency technologies in China and many overseas enterprises tried to tap this industry sector through. For example, the German and Italian Pavilions expanded in size for the 2016 fair, occupied over 1,000 sqm of exhibition space. In addition to these pavilions, there were individual exhibitors hailing from Finland, Japan, Korea and other countries. Oilon is a Finnish manufacturer of burners. Mr Eero Pekkola, CEO of the company, expressed: It is very important for us to create new technologies that help reduce pollution in China. Therefore, this year, we introduced our oil-based burner which reduces emissions with increasing steam production for district heating. is the most important platform in China and we have participated in the Beijing fair for years. We are confident that the fair will become more important to business in the future. Over 70 concurrent events revealed industry trends and stimulated idea exchange To complement the exhibition, the organisers held an extensive concurrent programme that aimed to inspire industry experts. More than 70 sessions of interactive conferences and seminars were conducted to enhance idea exchange and technical sharing. Experts and industry leaders worldwide were invited to discuss their industry outlook and take on the market potential. The concurrent programme was classified into technical seminars, business talks and networking activities. The second China International HVAC Congress (ihvac) was one of the main highlight events and featured four sub-forums, including renewable energies and heating technologies, heat pump technologies, intelligent HVAC technologies, and home comfort systems. Mr Andreas Lücke, General Executive Manager of the Federation of the German Heating Industry (BDH), was one of the organisers and speakers of the ihvac Renewable Energies & Heating Technologies forum. After his speech, he commented: The feedback I received from the conference was astonishing. Over 400 attendees occupied the conference room and were interested in district heating and renewable energies. This proves the relevance, quality of speakers and professionalism of the fair. Apart from the conference, I noticed a number of exhibitors have invested more in increasing their booth sizes and decorations. The 20 th edition of the fair was a tremendous success and BDH will continue to support the fair for another 20 years. The Association of Air Conditioning and Ventilation in Buildings (FGK), one of the organisers of the ihvac Home Comfort System forum, also approved of the conference. Mr Günther Mertz, the Managing Director of the association, said: The topic of the conference focused on energy savings and indoor air quality as well as thermal quality. It coincided well with the two phrases of this year s show slogan: energy saving and Page 4

comfort. I am amazed by the number of the attendees and we plan to invite more speakers from different parts of the world to enrich the diversity of communication in the future. Mr Song Zhongkui, Secretary General of Heat Pump Industry Committee of China Energy Conservation Association, was a speaker for the ihvac Heat Pump Technologies forum. He shared: This year, the forum highlighted a number of important national policies and presented numerous ground-breaking technological solutions for the heat pump industry. Since the Chinese government continues to launch policies that are favourable to the application of heat pumps into renewable energies and other advanced technologies, the future market for heat pumps in China is extremely promising. Mr Liu Haiyong, Marketing Manager from Beijing Joshare Technology Co Ltd, speaker at the ihvac Intelligent HVAC Technologies forum, said: In the era of IoT, smart intelligent products and solutions are imperative. HVAC products are developed to integrate with cloud servers and connect with other smart home systems. This way, intelligent HVAC products can be developed to communicate with other smart home and building components in the future." Another show highlight was the Klimahouse China Congress which was held at for the first time. Mr Ulrich Santa, Director of the Klimahouse Agency, shared: Climate change is a global phenomenon and we feel obligated to share and collectively improve green building technology for addressing this severe problem. Through collaboration with, we wish to raise awareness of the benefits of green buildings. In just half a day at the event, I have connected with a number of property developers who are interested in implementing this technology into their future projects. I am very pleased with the organisation of the event. The fair s successful turnout proves the importance of innovative building technologies and innovative HVAC appliances. The China Hotel HVAC Installation Engineering Forum was also one of the highlighted events. Mr Li Jian, Researcher of the Building Energy Conservation Research Center from Tsinghua University, was a speaker at the forum. He said: This year, Beijing implemented stricter measures on the usage for nitrogen oxides. These new measures have substantial influence on our business operations and regulation implementations. The forum gathered manufacturers, experts and technicians under one roof and conducted serious discussions to brainstorm new ideas and solutions. is headed by the biennial ISH event in Frankfurt, Germany, which is the world s leading trade fair for the Bathroom Experience, Building, Energy, Air-Conditioning Technology and Renewable Energies. The mother event will take place from 14 18 March 2017. Additionally, the ISH brand will add a new show, ISH India Page 5

powered by IPA, to its portfolio that runs from 23 25 February 2017 in Delhi, India. For more information, please visit www.ish.messefrankfurt.com. As for the next edition of ISH Shanghai & CIHE, it will be held from 31 August 2 September 2016 at the Shanghai New International Expo Centre. The next edition of will be staged from 18 20 May 2017 at the New China International Exhibition Center in Beijing. For more information, please visit www.ishc-cihe.hk.messefrankfurt.com or email info@ishc-cihe.com. end Background information on Messe Frankfurt Messe Frankfurt is one of the world s leading trade fair organisers, generating around 645* million in sales and employing 2,297* people. The Messe Frankfurt Group has a global network of 29 subsidiaries and 57 international Sales Partners, allowing it to serve its customers on location in more than 160 countries. Messe Frankfurt events take place at more than 40 locations around the globe. In 2015, Messe Frankfurt organised a total of 132* trade fairs, of which more than half took place outside Germany. Comprising an area of 592,127 square metres, Messe Frankfurt s exhibition grounds are home to ten exhibition halls. The company also operates two congress centres. The historic Festhalle, one of the most popular venues in Germany, plays host to events of all kinds. Messe Frankfurt is publicly owned, with the City of Frankfurt holding 60 percent and the State of Hesse 40 percent. For more information, please visit our website at www.messefrankfurt.com. * Preliminary numbers (2015) Page 6