Hisense Home Appliances : ▪ SUPPLEMENTAL ANNOUNCEMENT-(1)C...

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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)

SUPPLEMENTAL ANNOUNCEMENT

(1) CONTINUING CONNECTED TRANSACTIONS;

(2) CONTINUING CONNECTED TRANSACTIONS AND MAJOR

TRANSACTION;AND

(3) CONTINUING CONNECTED TRANSACTIONS- REVISED ANNUAL

CAPS AND SUPPLEMENTAL AGREEMENT

Reference is made to the announcement of Hisense Home Appliances Group Co., Ltd (the "Company", together with its subsidiaries the ''Group'') dated 26 November 2018 in relation to, among others, the Business Co-operation Framework Agreement and the Financial Services Agreement (the "Announcement"). Unless the context requires otherwise, capitalised terms used herein shall have the same meanings as in the Announcement.

BUSINESS CO-OPERATION FRAMEWORK AGREEMENT

The Company would like to provide further information in relation to the historical figures and proposed Caps of the transactions contemplated under the Business Co-operation Framework Agreement which (as the case may be) are entered or will be entered into between the Group and Hisense Group or Hisense International Co., Ltd.

("Hisense International"), which is a subsidiary of Hisense Group (as the case may be) and the historical figures and proposed Caps of the transactions related to Hisense International, which were originally included in the historical figures and proposed Caps of the transactions of Hisense Group in the Announcement, are individually disclosed in this announcement:-

(1) Purchase of home electrical appliances

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of approximately RMB50,000 (exclusive of VAT and unaudited) for the purchase of home electrical appliances by the Group from Hisense Group and/or its subsidiaries, approximately RMB50,000 was for the purchase from Hisense Group and RMB0 was for the purchase from Hisense International.

Proposed Cap:

Among the Cap of RMB277,880,000 (exclusive of VAT) allocated to the purchase of home electrical appliances from Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019, RMB230,000 will be allocated to the purchase of home electrical appliances from Hisense Group and RMB277,650,000 will be allocated to the purchase of home electrical appliances from Hisense International.

(2) Purchase of raw materials, parts and components

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of approximately RMB121,570,000 (exclusive of VAT and unaudited) for the purchase of raw materials, parts and components by the Group from Hisense Group and/or its subsidiaries, approximately RMB121,400,000 was for the purchase from Hisense Group and approximately RMB170,000 was for the purchase from Hisense International.

Proposed Cap:

Among the Cap of RMB238,360,000 (exclusive of VAT) allocated to the purchase of raw materials, parts and components from Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019, RMB237,660,000 will be allocated to the purchase of raw materials, parts and components from Hisense Group and RMB700,000 will be allocated to the purchase of raw materials, parts and components from Hisense International.

(3) Provision of services

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of approximately RMB341,660,000 (unaudited) for the provision of services by Hisense Group and/or its subsidiaries, approximately RMB329,270,000 was for the provision of material processing, installation and maintenance, distribution, property, medical, leasing, design, inspection, agency services, property construction, management consultancy, technical support and information system maintenance services by Hisense Group and approximately RMB12,390,000 was for the provision of agency and maintenance services by Hisense International.

Proposed Cap:

Among the Cap of RMB656,580,000 allocated to the provision of material processing, installation and maintenance, distribution, property, medical, leasing, design, inspection, agency services, property construction, management consultancy, technical support and information system maintenance services by Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019,RMB627,580,000 will be allocated to the provision of material processing, installation and maintenance, distribution, property, medical, leasing, design, inspection, agency services, property construction, management consultancy, technical support and information system maintenance services by Hisense Group and RMB29,000,000 will be allocated to the provision of agency and maintenance services by Hisense International.

(4) Supply of home electrical appliances

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of approximately RMB7,606,910,000 (exclusive of VAT and unaudited) for the supply of home electrical appliances by the Group to Hisense Group and/or its subsidiaries, approximately RMB168,280,000 was for the supply to Hisense Group and approximately RMB7,438,630,000 was for the supply to Hisense International.

Proposed Cap:

Among the Cap of RMB14,413,900,000 (exclusive of VAT) allocated to the supply of home electrical appliances by the Group to Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019, RMB364,280,000 will be allocated to the supply of home electrical appliances by the Group to Hisense Group and RMB14,049,620,000 will be allocated to the supply of home electrical appliances by the Group to Hisense International.

(5) Supply of equipment

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of RMB0 (exclusive of VAT and unaudited) for the supply of equipment by the Group to Hisense Group and/or its subsidiaries, RMB0 was for the supply to Hisense Group and RMB0 was for the supply to Hisense International.

Proposed Cap:

Among the Cap of RMB12,500,000 (exclusive of VAT) allocated to the supply of equipment by the Group to Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019, such Cap will be fully allocated to the supply of equipment by the Group to Hisense International (a subsidiary of Hisense Group).

(6) Supply of moulds

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of approximately RMB51,900,000 (exclusive of VAT and unaudited) for the supply of moulds by the Group to Hisense Group and/or its subsidiaries, approximately RMB3,450,000 was for the supply to Hisense Group andapproximately RMB48,450,000 was for the supply to Hisense International.

Proposed Cap:

Among the Cap of RMB70,320,000 (exclusive of VAT) allocated to the supply of moulds by the Group to Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019, RMB9,000,000 will be allocated to the supply of moulds by the Group to Hisense Group and RMB61,320,000 will be allocated to the supply of moulds by the Group to Hisense International.

(7) Supply of raw materials, parts and components

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of approximately RMB60,630,000 (exclusive of VAT and unaudited) for the supply of raw materials, parts and components by the Group to Hisense Group and/or its subsidiaries, approximately RMB12,010,000 was for the supply to Hisense Group and approximately RMB48,620,000 was for the supply to Hisense International.

Proposed Cap:

Among the Cap of RMB112,050,000 (exclusive of VAT) allocated to the supply of raw materials, parts and components by the Group to Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019, RMB25,150,000 will be allocated to the supply of raw materials, parts and components by the Group to Hisense Group and RMB86,900,000 will be allocated to the supply of raw materials, parts and components by the Group to Hisense International .

(8) Provision of services by the Group

Historical figures:

For the nine months ended 30 September 2018, among the transaction amount in the sum of approximately RMB10,410,000 (unaudited) for the provision of services by the Group to Hisense Group and/or its subsidiaries, approximately RMB8,850,000 was for the provision of processing services and property services by the Group to Hisense Group and approximately RMB1,560,000 was for the provision of design and property services by the Group to Hisense International.

Proposed Cap:

Among the Cap of RMB32,390,000 allocated to the provision of design, processing services and property services by the Group to Hisense Group and/or its subsidiaries for the financial year ending 31 December 2019, RMB17,690,000 will be allocated to the supply of processing services and property services by the Group to Hisense Group and RMB14,700,000 will be allocated to the provision of design and property services by the Group to Hisense International .

INFORMATION RELATING TO HISENSE INTERNATIONAL

Hisense International has a registered capital of RMB30,000,000 and its registered address is 218 Qian Wan Gang Road, Qingdao Economic and Technological Development Zone. Mr. Lin Lan is the legal representative of Hisense International. The scope of business include: Import and export of goods and import and export of technology (not permitted to operate business prohibited by law and administrative regulations; if the operation of business is restricted by law and administrative regulations, operation of business is only allowed upon obtaining the necessary permit); planning of corporate marketing; carrying on sino-foreign joint venture and cooperative production business; and carrying on the business of "The Three-plus-one Trading-mix" (permit/licence shall be obtained for the operation of the businesses above if they fall into the requirements of licensure); production and sales of remote controls, degaussing coils, electrical components, air-conditioner components, etc.

FINANCIAL SERVICES AGREEMENT

The Company would like to clarify that for the period commencing from 1 January 2018 to 30 September 2018, the total discount interest paid by the Group to Hisense Finance for the provision of draft discount services amounted to approximately RMB7,537,400 instead of RMB753,740,000 as previously stated at page of 22 of the Announcement due to inadvertent typographical error.

By order of the Board of

Hisense Home Appliances Group Co., Ltd.

Tang Ye Guo

Chairman

Foshan City, Guangdong, the PRC, 7 December 2018

As at the date of this announcement, the Company's directors are Mr. Tang Ye Guo, Mr. Liu Hong Xin, Mr. Lin Lan, Mr. Dai Hui Zhong, Mr. Jia Shao Qian and Mr. Wang Yun Li; and the Company's independent non-executive directors are Mr. Ma Jin Quan, Mr. Zhong Geng Shen and Mr. Cheung Sai Kit.