Haier Electronics : ANNOUNCEMENT PURSUANT TO RULE 3.8 OF THE TAKEOVERS CODE

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities of the Company.

HAIER ELECTRONICS GROUP CO., LTD.

海 爾 電 器 集 團 有 限 公 司*

(Incorporated in Bermuda with Limited Liability)

(Stock Code: 1169)

ANNOUNCEMENT

PURSUANT TO RULE 3.8 OF THE TAKEOVERS CODE

This announcement is made by Haier Electronics Group Co., Ltd. (the ''Company'') pursuant to Rule 3.8 of the Hong Kong Code on Takeovers and Mergers (the ''Takeovers Code'') issued by the Securities and Futures Commission of Hong Kong.

Reference is made to the announcement of the Company dated 16 December 2019 pursuant to Rule 3.7 of the Takeovers Code in relation to, among other things, the possible privatisation of the Company which may involve a securities exchange offer for the Company (the ''Announcement''), the joint announcements of the Company and the Possible Offeror dated 16 January 2020 and 14 February 2020 pursuant to Rule 3.7 of the Takeovers Code in relation to a monthly update on the Possible Offer and the announcement of the Company dated 10 March 2020 pursuant to Rule 3.8 of the Takeovers Code in relation to an update on the number of relevant securities of the Company. Unless the context requires otherwise, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

UPDATE ON NUMBER OF RELEVANT SECURITIES OF THE COMPANY

The board of directors of the Company wishes to announce that on 11 March 2020, 154,000 new Shares were allotted and issued pursuant to the exercise of 154,000 options granted under the Share Option Scheme with an exercise price of HK$12.84 per Share.

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As at the date of this announcement, after the exercise of share options as described above, the Company has a total issued share capital of 2,816,248,578 Shares and outstanding options to subscribe for up to 1,070,600 Shares granted under the Share Option Scheme. Save as disclosed, the Company has no other relevant securities (as defined in Note 4 to Rule 22 of the Takeovers Code) as at the date of this announcement.

DISCLOSURE OF DEALINGS IN SHARES

Associates (including a person who owns or controls 5% or more of any class of relevant securities (as defined in Note 4 to Rule 22 of the Takeovers Code)) of the Possible Offeror and the Company are reminded to disclose their dealings in the relevant securities of the Possible Offeror and the Company pursuant to the requirements under Rule 22 of the Takeovers Code.

In accordance with Rule 3.8 of the Takeovers Code, reproduced below is the full text of Note 11 to Rule 22 of the Takeovers Code:

''Responsibilities of stockbrokers, banks and other intermediaries

Stockbrokers, banks and others who deal in relevant securities on behalf of clients have a general duty to ensure, so far as they are able, that those clients are aware of the disclosure obligations attaching to associates of an offeror or the offeree company and other persons under Rule 22 and that those clients are willing to comply with them. Principal traders and dealers who deal directly with investors should, in appropriate cases, likewise draw attention to the relevant Rules. However, this does not apply when the total value of dealings (excluding stamp duty and commission) in any relevant security undertaken for a client during any 7 day period is less than $1 million.

This dispensation does not alter the obligation of principals, associates and other persons themselves to initiate disclosure of their own dealings, whatever total value is involved.

Intermediaries are expected to co-operate with the Executive in its dealings enquiries. Therefore, those who deal in relevant securities should appreciate that stockbrokers and other intermediaries will supply the Executive with relevant information as to those dealings, including identities of clients, as part of that co-operation.''

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WARNING: There is no assurance that the Possible Offer will materialise or eventually be consummated, and any future discussion between the Possible Offeror and the Company in relation to the Possible Offer may or may not result in the privatisation and delisting of the Company from the Stock Exchange. Shareholders of the Company and potential investors are reminded to exercise caution when dealing in the shares of the Company. Persons who are in doubt as to the action they should take should consult their stockbrokers, bank managers, solicitors or other professional advisors.

By Order of the Board of

Haier Electronics Group Co., Ltd.

Zhou Yun Jie

Chairman

Hong Kong, 11 March 2020

As at the date of this announcement, the executive Directors are Mr. Zhou Yunjie (Chairman), Mr. Xie Ju Zhi and Mr. Li Hua Gang; the non-executive Directors are Mr. Liang Haishan and Mr. Yang Guang; the independent non-executive Directors are Mr. Yu Hon To, David, Mrs. Eva Cheng Li Kam Fun, Mr. Gong Shao Lin and Dr. John Changzheng Ma.

The Directors jointly and severally accept full responsibility for the accuracy of the information contained in this announcement and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in this announcement have been arrived at after due and careful consideration and there are no other facts not contained in this announcement, the omission of which would make any statement in this announcement misleading.

• For identification purposes only

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