Sanhua was founded by Zhang Daocai in Xinchang, China (Zhejiang Province) in 1984 as a refrigeration components manufacturer. The name "Sanhua" is Chinese meaning "3 flowers". In 2007, Sanhua acquired the Ranco 4-way reversing valves from Invensys Controls. In 2010, Sanhua was listed in the top 100 most valued Chinese industrial brands. The company is currently the largest supplier of electric expansion valves and microchannel heat exchangers to the HVACR industry.