Hisense Home Appliances : ▪ 2019 FIRST QUARTERLY REPORT

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.

HISENSE HOME APPLIANCES GROUP CO., LTD.

海信家電集團股份有限公司

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 00921)

2019 FIRST QUARTERLY REPORT

This announcement is made by Hisense Home Appliances Group Co., Ltd. (the "Company") pursuant to Part XIVA of the Securities and Futures Ordinance (CAP.571) and Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

I. IMPORTANT NOTICE

1.The board of directors (the "Board"), the supervisory committee (the "Supervisory Committee"), the directors (the "Directors"), the supervisors (the "Supervisors") and the senior management (the "Senior Management") of the Company warrant that there are no false representation or misleading statements contained in, or material omissions from, this report; and jointly and severally accept legal responsibility for the truthfulness, accuracy and completeness of the information contained herein.

2.Mr. Tang Ye Guo, the person in charge of the Company and Mr. Chen Xiao Lu, the person in charge of the accounting function and Ms. Liang Hong Tao, the person in charge of the accounting department, warrant the truthfulness, accuracy and completeness of the contents of the financial statements in this quarterly report.

3.All Directors attended the Board meeting for considering and approving the 2019 first quarterly report.

4.The financial statements of the Company for the first quarter of 2019 have not been audited by accountants.

5.The full text of the Company's balance sheet, income statement and cash flow statement are published on the website as designated by the Shenzhen Stock Exchange for release of information: http://www.cninfo.com.cn.

1

II. MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS

Did the Company make retrospective adjustment to or restatement of the accounting data of prior years due to changes in accounting policies and correction of accounting errors?

√Yes		□ No
Reasons for retrospective adjustment or restatement: Correction of accounting errors
										Increase or
										decrease of this
										reporting period as
		Items				This reporting period	The period last year			compared to the
										corresponding
										period last year
										(%)
							Before correction		After correction	After correction
Operating revenue (RMB)						8,686,763,509.65	8,974,222,298.65		8,974,222,298.65	-3.20
Net profits attributable to shareholders of						421,644,890.03	287,986,771.63		282,882,785.69	49.05
listed company (RMB)
Net profits attributable to shareholders of
listed	company		after	deducting		390,578,128.46	271,595,062.24		266,491,076.30	46.56
extraordinary profit and loss (RMB)
Net cash	flow	from	operating	activities		219,895,563.30	-676,019,105.62		-676,019,105.62	N/A
(RMB)
Basic earnings per share (RMB/share)						0.31	0.21		0.21	47.62
Diluted earnings per share (RMB/share)						0.31	0.21		0.21	47.62
Weighted	average rate of return on				net	5.57	4.37		4.22	1.35 percentage point
assets (%)
										Increase or
										decrease at the end
						End of this reporting	End of last financial year			of this reporting
		Items								period as compared
						period
										to the end of last
										financial year(%)
							Before correction		After correction	After correction
Total assets (RMB)						22,929,363,294.26	21,827,905,038.40		21,827,905,038.40	5.05
Net assets attributable			to shareholders		of	7,774,916,974.15	7,351,824,364.87		7,351,824,364.87	5.75
listed company (RMB)

Illustration of the correction of accounting errors

Details of the correction of accounting errors can be found in the announcement regarding Correction of Accounting Errors published on the website of the Hong Kong Stock Exchange (http://www.hkex.com.hk) on 28 March 2019.

Extraordinary profit and loss items and amounts

√	□ Not applicable
				Unit: RMB
		Amounts	from	the
Item		beginning of the year to			Description
		the end of the reporting
		period

2

Profits or losses from disposal of non-current assets (including the part written off for	88,300.59
provision for impairment on assets)
Government subsidy recorded in the profits or losses of the current period (except
government subsidy which is closely related to the Company's business and is entitled	34,452,420.19
for fixed amounts or fixed percentage based on unified standards promulgated by the
government)
Gain or loss arising from entrusted investment or entrusted asset management	8,071,780.81
Non-operating income and expenses other than the aforementioned items	-2,009,990.32
Less: Effect of income tax	5,650,138.19
Effect of minority interests (after tax)	3,885,611.51
Total	31,066,761.57	--

III.Table showing total number of shareholders and the shareholding of the top ten holders of ordinary shares at the end of the reporting period

Unit: shares

Total number of shareholders of

ordinary shares at the end of the

29,337

reporting period

The shareholding of the top ten holders of ordinary shares

Percentage to

No. of shares

Situation of pledged

the total

or frozen shares

Nature of

No. of shares

held subject

Name of Shareholder

issued share

Shareholder

held

to selling

Share

capital of the

Quantity

restrictions

status

Company (%)

Qingdao

Hisense

Air-conditioning

State-owned

37.92%

516,758,670

0

Company Limited

legal person

HKSCC Nominees Limited Note

Foreign legal

33.56%

457,263,069

0

person

Shanghai Gaoyi Asset Management -

Other

3.78%

51,500,000

0

Gaoyi Linshan No. 1 Long-range Fund

The Hong

Kong

Securities Clearing

Foreign legal

3.13%

42,626,079

0

Company (HKSCC)

person

Cental Huijin Asset Management Ltd.

State-owned

1.95%

26,588,700

0

legal person

Bank of Communications - HSBC

Other

0.74%

10,089,985

0

Jintrust Fund Management Stock

Securities Investment Fund

National Social Security Fund Portfolio

Other

0.62%

8,403,229

0

110

Bank of China - China International

Fund Management Core Growth Stock

Other

0.55%

7,517,651

0

Securities

Zhang Shao Wu

Domestic natural

0.53%

7,200,000

0

person

China Property Insurance Company -

Other

0.38%

5,227,203

0

Traditional - General Insurance Products

The shareholding of the top ten holders of ordinary shares not subject to selling restrictions

Number

of shares

Class of shares

Name of Shareholder

held not

subject to

Class of shares

Quantity

selling restrictions

Qingdao Hisense Air-conditioning Company Limited

516,758,670

RMB ordinary shares

516,758,670

HKSCC Nominees Limited Note

457,263,069

Overseas listed foreign

457,263,069

3

		shares
Shanghai Gaoyi Asset Management - Gaoyi Linshan No. 1	51,500,000		51,500,000
Long-range Fund		RMB ordinary shares
The Hong Kong Securities Clearing Company (HKSCC)	42,626,079	RMB ordinary shares	42,626,079
Cental Huijin Asset Management Ltd.	26,588,700	RMB ordinary shares	26,588,700
Bank of Communications - HSBC Jintrust Fund Management	10,089,985		10,089,985
Stock Securities Investment Fund		RMB ordinary shares
National Social Security Fund Portfolio 110	8,403,229	RMB ordinary shares	8,403,229
Bank of China - China International Fund Management Core	7,517,651		7,517,651
Growth Stock Securities		RMB ordinary shares
Zhang Shao Wu	7,200,000	RMB ordinary shares	7,200,000
China Property Insurance Company - Traditional - General	5,227,203		5,227,203
Insurance Products		RMB ordinary shares

Note:

The shares held by HKSCC Nominees Limited are held on behalf of a number of its account participants, among which, Hisense (Hong Kong) Company Limited, a party acting in concert with the controlling shareholder of the Company, increased holding of the company's 27.25 million H shares and held a total of 124,452,000 H shares of the Company as at the end of the Reporting Period, representing 9.13% of the total number of shares of the Company;

Save as disclosed above, the Company is not aware of whether any shareholders is connected with each other or any of them is a party acting in concert with any of the other within the meaning of 《上市公司 收購管理辦法》(Administrative Measures for the Takeover of Listed Companies).

IV. SIGNIFICANT MATTERS

1.Details of and reasons for significant changes of the principal accounting items and financial indicators during the reporting period

√

□ Not applicable

Unit: RMB

Balance sheet items

Closing balance

Opening balance

Change

Reason for the change

（%）

Other receivables

987,549,756.79

318,926,986.30

209.65

Mainly

due to the increase in dividend

receivable at the end of the reporting period.

Mainly due to the advances from customers

Contract Liability

488,318,793.72

716,041,073.75

-31.8

roll out with sales, resulting in an decrease in

contract liability at the end of the reporting

period accordingly.

The balance form

Statement of cash flow

the year beginning

The balance of last

Change

Reason for the change

items

to the end of this

period

（%）

reporting period

Cash received from

Mainly due to the variation margin decreased

other financing related

96,070,145.90

219,513,924.23

-56.24

from the same period last year.

activities

2. Development of significant matters and analysis of their impacts and solutions

√Applicable

□ Not applicable

Overview of significant matters

Release

Website search guidelines of

4

		Time	published announcements
The Company received 0.2% equity interests of Qingdao Hisense
Hitachi Air-conditioning System Co., Ltd. ("Hisense Hitachi") held
by Unitecs Corporation(株式會社聯合貿易) with a consideration of			Website：
RMB25,000,000 after the approval of the Board of the Company
			Hong Kong Stock Exchange
and the Board of Hisense Hitachi. Upon the completion of equity		6,March,201
			http://www.hkex.com.hk
transfer, amendments to the articles of association of Hisense		9	Document：
Hitachi and increasement of two directors of Hisense Hitachi who
designated by the Company, the financial results of Hisense Hitachi			Major Transaction
will be consolidated into the accounts of the Company. This
resolution has to be considered and approved on the general meeting
of the Company.
The progress in implementation of share repurchase
□	√Not applicable
The progress in implementation of share repurchase by centralized competitive bidding
□ Appl	√Not applicable

3.Undertakings not yet performed after the due date during the reporting period by the Company, shareholder(s), beneficial controller(s), acquirer(s), director(s), supervisor(s), senior management or other connected party(ies)

□Applicable √Not applicable

During the reporting period, there were no incidents of undertaking not yet performed after the due

date by the Company's beneficial controller(s), shareholder(s), connected party(ies), acquirer(s) and

the Company.

4. Estimate of operating results for first six months of 2019

Warnings and explanations of any estimated losses or significant changes to accumulated net profit from the beginning of the year to the end of next reporting period compared to the same period last year

□	√Not applicable
5. Derivatives investment
√Applicable	□ Not applicable

Unit: RMB (in ten thousand)

Nam

Conn

Wheth

Type of

Initial

Effective

Expiry

Investme

Amo

Investmen

Proportio

Actual

e of

ectio

er or

derivatives

investme

Date

Date

nt at the

unt of

t at the

n

of

amount

oper

n

not a

investment

nt of

beginnin

Amount

provi

end of the

investme

of

ators

conne

derivative

g of the

Amount of

of

sion

reporting

nt

to the

profit

of

cted

s

reporting

purchase

disposal

for

period

net

asset

and

deriv

transa

investme

period

during the

during

impai

of

the

loss

ative

ction

nt

reporting

the

rment

Company

during

s

period

reporting

(if

at the end

the

inves

period

any)

of

the

reporti

tmen

reporting

ng

t

period

period

5