Haier Electronics : JOINT ANNOUNCEMENT MONTHLY UPDATE PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE IN RELATION TO THE POSSIBLE PRIVATISATION OF HAIER ELECTRONICS GROUP CO., LTD.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this joint 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 joint announcement.

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

HAIER SMART HOME CO., LTD.*	HAIER ELECTRONICS GROUP CO., LTD.
海 爾 智 家 股 份 有 限 公 司	海 爾 電 器 集 團 有 限 公 司*
(a joint stock company incorporated in the	(Incorporated in Bermuda with Limited Liability)
People's Republic of China with limited liability)
(Stock Code: 1169)

JOINT ANNOUNCEMENT

MONTHLY UPDATE

PURSUANT TO RULE 3.7 OF THE TAKEOVERS CODE IN RELATION TO THE POSSIBLE PRIVATISATION OF HAIER ELECTRONICS GROUP CO., LTD.

This announcement is jointly made by Haier Smart Home Co., Ltd.* (the ''Potential Offeror''), the shares of which are listed and traded on the Shanghai Stock Exchange (stock code: 600690), and Haier Electronics Group Co., Ltd. (the ''Company'') pursuant to Rule 3.7 of the Hong Kong Code on Takeovers and Mergers (the ''Takeovers Code'').

References are made to (1) the announcement of the Potential Offeror dated 16 December 2019 (the ''Offeror Rule 3.7 Announcement'') and the announcement of the Company dated 16 December 2019 respectively pursuant to Rule 3.7 of the Takeovers Code in relation to, among others, the Possible Privatisation; (2) the announcement of the Potential Offeror dated 17 December 2019 and the announcements of the Company dated 17 December 2019, 18 December 2019, 2 January 2020, 7 January 2020, 10 January 2020, 14 January 2020, 7 February 2020, 10 February 2020, 4 March 2020, 5 March 2020, 6 March 2020, 9 March 2020, 10 March 2020, 11 March 2020, 12 March 2020, 13 March 2020 and 16 March 2020 respectively pursuant to Rule 3.8 of the Takeovers Code in relation to updates on the number of relevant securities; and (3) the joint announcements of the Potential Offeror and the Company dated 16 January 2020 and 14 February 2020 pursuant to Rule 3.7 of the Takeovers Code in relation to updates on the Possible Privatisation. Unless the context requires otherwise, capitalised terms used herein shall have the same meanings as those defined in the Offeror Rule 3.7 Announcement.

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UPDATE ON THE POSSIBLE PRIVATISATION

The Potential Offeror wishes to update that it has been continuing to explore the proposal on the Possible Privatisation, and has been in ongoing consultations with the relevant regulators concerning the proposed transactions being explored in that regard. As at the date of this joint announcement, the Potential Offeror has not furnished a definitive Possible Privatisation proposal to the Company. No agreement or other commitment has been made by the Potential Offeror as to whether to proceed with the Possible Privatisation. The details and terms (including the exchange ratio and the timetable) of the Possible Privatisation are yet to be finalised, and there is no certainty that the Possible Privatisation will proceed.

The Company wishes to update its shareholders and potential investors that, as at the date of this joint announcement, the Company has not received a definitive Possible Privatisation proposal from the Potential Offeror. The Company understands that the Possible Privatisation remains in the exploration stage and no agreement or other commitment has been made by the Potential Offeror as to whether to proceed with the Possible Privatisation, and there is no certainty that the Possible Privatisation will proceed.

MONTHLY ANNOUNCEMENTS

In compliance with Rule 3.7 of the Takeovers Code, monthly announcement(s) setting out the progress of the talks or the consideration of the Possible Privatisation will be made until an announcement is made of a firm intention to make an offer under Rule 3.5 of the Takeovers Code or of a decision not to proceed with the Possible Privatisation.

Further announcement(s) will be made by the Potential Offeror and/or the Company as and when appropriate or required in accordance with the Listing Rules and/or the Takeovers Code (as the case may be).

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

By Order of the board of directors of	By Order of the board of
Haier Smart Home Co., Ltd.*	Haier Electronics Group Co., Ltd.
Tan Lixia	Zhou Yun Jie
Vice Chairman of the board of directors	Chairman
16 March 2020

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As at the date of this joint announcement, the directors of the Potential Offeror are Liang Haishan, Tan Lixia, Wu Changqi, Li Hua Gang, Yan Yan, Lin Sui, Qian Daqun, Shi Tiantao and Dai Deming.

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

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

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

• For identification purpose only

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