Hisense Home Appliances : ▪ ANNOUNCEMENT OF RESULTS FOR TH...

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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)

ANNOUNCEMENT OF RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2018

All members (the "Directors") of the board of directors (the "Board") of HISENSE HOME APPLIANCES GROUP CO., LTD. (the "Company" or "Hisense Appliances") announce the annual audited results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 December 2018 (the "Reporting Period") together with the 2017 comparative figures, prepared in accordance with China Accounting Standards for Business Enterprises ("China Accounting Standards"). The following financial information is prepared in accordance with China Accounting Standards:

FINANCIAL INFORMATION PREPARED IN ACCORDANCE WITH CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

(Unless otherwise specified, all amounts are denominated in RMB)

Consolidated Balance Sheet

	Item		Note		31 December 2018	31 December 2017
	Assets
	Current assets
	Cash at bank and on hand			3,648,463,609.61		2,996,028,194.89
	Transactional financial assets			207,350.00		N/A
	Financial assets at fair value through profit				N/A	82,670.52
	or loss for the current period
	Derivative financial assets
	Notes receivable and Accounts receivable			6,068,203,234.09		6,350,259,386.45
	Including: Notes receivable			2,971,748,608.75		3,517,031,644.77
	Accounts receivable		5	3,096,454,625.34		2,833,227,741.68
	Prepayments			224,120,738.37		239,594,948.71
	Others receivables			318,926,986.30		312,462,291.68
	Including: Interest receivable			197,325.00		151,200.00
	Dividend receivable
		Page 1 of 49

Inventories			2,955,752,775.71	3,397,860,489.07
Contract assets				N/A
Holding assets for sale
Non-current assets due within one year
Other current assets			1,081,172,953.81	1,551,317,129.32
Total current assets			14,296,847,647.89	14,847,605,110.64
Non-current assets
Investments in debt				N/A
Financial assets available-for-sale			N/A	100,000.00
Other investments in debt				N/A
Held to maturity investments			N/A
Long-term receivables
Long-term equity investments			3,326,783,023.78	2,509,631,188.19
Other equity investment				N/A
Other non-current financial assets				N/A
Investment properties			22,511,361.05	24,997,438.39
Fixed assets			3,263,931,920.41	3,252,289,033.55
Construction in progress			84,296,518.04	148,361,940.80
Productive biological assets
Oil and gas assets
Intangible assets			714,706,893.47	716,335,386.22
Development expenditure
Goodwill
Long-term prepaid expenses			25,349,762.41	3,727,675.38
Deferred tax assets			93,477,911.35	104,404,613.17
Other non-current assets
Total non-current assets			7,531,057,390.51	6,759,847,275.70
Total assets			21,827,905,038.40	21,607,452,386.34
Liabilities and shareholders' equity
Current liabilities
Short-term borrowings
Transactional financial liabilities			2,765,900.00	N/A
Financial liabilities at fair value through pr			N/A	373,723.35
ofit or loss for the current period
Derivative financial liabilities
Notes payable and Accounts payable		6	9,815,704,300.63	10,379,862,551.66
Advances from customers				791,262,245.11
	Page 2 of 49

Employee remunerations payable		328,800,107.19	323,419,615.39
Taxes payable		230,675,886.53	265,563,541.86
Other payable		1,766,319,446.79	1,709,226,096.76
Including: Interests payable
Dividends payable
Contract liability		716,041,073.75	N/A
Holding liabilities for sale
Non-current liabilities due within one year
Other current liabilities		646,178,914.93	639,347,580.40
Total current liabilities		13,506,485,629.82	14,109,055,354.53
Non-current liabilities
Long-term borrowings
Bonds payable
Including: preferred stock
Perpetual bond
Long-term payables
Long-term Employee remunerations
payable
Provisions		329,557,537.00	337,091,145.64
Deferred income		98,410,309.53	73,013,121.41
Deferred tax liability		4,044,585.32	1,137,179.22
Other non-current liabilities
Total non-current liabilities		432,012,431.85	411,241,446.27
Total liabilities		13,938,498,061.67	14,520,296,800.80
Shareholders' equity
Share capital		1,362,725,370.00	1,362,725,370.00
Other equity instruments
Including: Preferred stock
Perpetual bond
Capital reserves		2,076,473,214.56	2,078,119,839.70
Less：Treasury stock
Other comprehensive incomes		16,896,290.49	13,390,695.59
Special reserves
Surplus reserves		556,272,909.16	478,649,714.91
General risk reserves
Retained profits		3,339,456,580.66	2,646,203,617.29

Page 3 of 49

		Total equity attributable to shareholders												7,351,824,364.87			6,579,089,237.49
		of the Parent
		Minority interests												537,582,611.86			508,066,348.05
		Total shareholders' equity												7,889,406,976.73			7,087,155,585.54
		Total liabilities and shareholders' equity												21,827,905,038.40			21,607,452,386.34
		Consolidated Income Statement
				Item						Note				2018			2017
1.			Total operating income						7					36,019,598,304.79			33,487,590,387.45
		Operating revenue							7					36,019,598,304.79			33,487,590,387.45
2.			Total operating costs											35,641,100,116.57			33,159,445,480.99
		Including：Operating costs							7					29,171,524,760.00			26,969,830,953.33
		Business taxes and surcharges												311,637,390.87			325,301,170.51
		Selling and distribution expenses												5,005,944,320.73			4,771,756,662.02
		General and administrative expenses												425,693,468.96			426,240,869.34
		Research and development expenses												686,772,325.33			618,493,863.77
		Financial expenses							8					34,610,575.42			9,777,593.76
		Including: Interest expense												3,987,499.99
		Interest income												36,481,903.61			28,856,412.64
		Impairment losses on assets												2,550,168.03			38,044,368.26
		Impairment loss on credit												2,367,107.23			N/A
		Add: Other gain												302,603,027.45			125,483,420.20
		Investment gain (loss expressed with							9					828,685,091.63			1,582,980,508.56
"-")
		Including:		Share		of	profit	of	9					783,792,628.40			769,755,573.15
		associates and joint ventures
		Net	open	hedge		income (loss											N/A
		expressed with "-")
		Gain or loss from changes in fair												-2,267,497.17			-9,986,122.87
		values (loss expressed with "-")
		Gains on		disposal		of	asset	(loss						1,210,083.22			4,136,179.65
		expressed with "-")
3.			Operating		profits			(loss						1,508,728,893.35			2,030,758,892.00
			expressed with "-")
		Add: Non-operating income												74,020,079.75			237,692,697.13
		Less: Non-operating expenses												17,843,104.64			15,577,352.42

Page 4 of 49

4.

Total

profits

(loss

expressed

1,564,905,868.46

2,252,874,236.71

with "-")

Less: Income tax expenses

10

141,831,492.77

181,067,121.45

5.

Net profits (loss expressed with

1,423,074,375.69

2,071,807,115.26

"-")

(1)

Classification

by

business

continuity

1)

Net

profit

for

continuing

operations (loss

expressed

with

1,423,074,375.69

2,071,807,115.26

"-")

2)

Termination

of

operating

net

profit (loss expressed with "-")

(2)

Classification by ownership

1)

Net

profit

attributable

to

shareholders

of

the

parent

1,377,457,177.70

2,018,112,935.64

company

(loss

expressed

with

"-")

2)

Minority

shareholder

gains and

45,617,197.99

53,694,179.62

losses (loss expressed with "-")

6.

Net

after

tax

for

other

3,618,965.46

-11,293,988.72

comprehensive income

Net

after-tax

net

of

other

comprehensive income

attributable

3,605,594.90

-11,493,035.75

to shareholders of the parent

company

(1)

Other

comprehensive

income

that cannot be reclassified into

profit or loss

1)

Re-measure the change in the

defined benefit plan

2)

Other

comprehensive

income

that cannot be transferred to

profit or loss under the equity

method

3)

Changes

in fair

value

of

other

N/A

equity instruments investment

4)

Changes in the fair value of the

N/A

company's own credit risk

5)

Others

(2)

Other

comprehensive

income

that

will

be

reclassified

into

3,605,594.90

-11,493,035.75

profit or loss

Page 5 of 49