Midea Group Co., Ltd ("Midea") is the controlling shareholder of the Company. On 31 March 2008, with the support of Midea, the Company completed an important restructuring exercise which involved a business and assets swap. The Company has disposed of its then existing business principally engaging in the manufacturing and distribution of electrical household appliances, including principally air-conditioners, refrigerators and mini-refrigerators, to a subsidiary of Midea, and acquired from Midea its indirect wholly-owned subsidiary, Welling Holding (BVI) Limited, which is principally engaged in the manufacturing and distribution of motors for electrical household appliances, including principally air-conditioners, washing machines, and electronic and electric components. Details of the restructuring are included in the circular of the Company dated 25 February 2008.

The Company is one of the manufacturers of motors for global white goods of electrical household appliances. The Company has five operating subsidiaries, including Guangdong Welling Motor Manufacturing Co., Ltd, Foshan Welling Washer Motor Manufacturing Co., Ltd, Foshan Welling Electronic and electric Co., Ltd, Huaian Welling Motor Manufacturing Co., Ltd and Welling (Wuhu) Motor Manufacturing Co., Ltd.

The Company's main products are motors which are widely used in air-conditioners, washing machines, dishwashers, water heaters, refrigerators, soybean milk makers, range hoods, bread making machines as well as other electromechanical components such as microwave oven high-voltage transformer and air-conditioner reactor. With three production bases in Shunde Guangdong, Wuhu Anhui and Huaian Jiangsu and five industrial zones, Welling is able to achieve annual production capacity of 110 million units of motors. Those motors are being sold across Asia, America, Europe and Oceania. Good and long-term business relationship has been built with some renowned international electrical household appliances manufacturers, including Indesit, Samsung, Carier, LG, Haier, Midea and Hisense.

Welling has set up its "Test and Verification Center", with certification by CNAL of Foshan Guangdong, "Small Motor Technology R& D Center" and "Postdoctoral Scientific Research Work Station". In 2002, Welling's trademark was recognized as "Guangdong Famous Brand" by Industry and Commerce Bureau of Guangdong. In 2006, Welling's motors were recognized as "China Top Brand" products by China AQSIQ (Administration of Quality Supervision, Inspection and Quarantine). Up to the end of 2008, we have been granted 80 national patents. Two of our products filled the blank in the Mainland. In addition, we have accomplished three postdoctoral development projects as well.