Hisense Home Appliances : DISCLOSEABLE TRANSACTIONS-SUBSCRIPTION OF WEALTH MANAGEMENT PRODUCTS

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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)

DISCLOSEABLE TRANSACTIONS

SUBSCRIPTION OF WEALTH MANAGEMENT PRODUCTS

At the first meeting for the year 2020 held by the tenth session of the Directors on 14 April 2020 and the 2019 annual general meeting of the Company held on 23 June 2020, a resolution on entrusted wealth management of idle self-owned funds of the Company was considered and approved. Subject to the investment risk control by the Company and the principles of improving efficiency of the use of capital and increasing return on cash assets, the entrustment of idle self-owned funds of not more than RMB9,000,000,000 to commercial banks, trust companies, securities companies, fund companies, insurance companies, asset management companies and other financial institutions to conduct short-term and low-risk investment for wealth management was approved. The progress is now announced as follows:

Reference is made to the announcements of the Company dated 17 October 2019, 29 October 2019, 7 November 2019, 19 November 2019, 21 November 2019, 10 December 2019, 6 February 2020, 14 May 2020, 21 May 2020 and 27 July 2020 in respect of the 2019 CZBank First Wealth Management Agreement, the 2019 CZBank Second Wealth Management Agreement, the 2019 CZBank Third Wealth Management Agreement, the 2019 CZBank Fourth Wealth Management Agreement, the 2019 CZBank Fifth Wealth Management Agreement, the 2019 CZBank Sixth Wealth Management Agreement, the 2019 CZBank Seventh Wealth Management Agreement, the 2019 CZBank Eighth Wealth Management Agreement, the 2019 CZBank Ninth Wealth Management Agreement, the 2019 CZBank Tenth Wealth Management Agreement, the 2019 CZBank Eleventh Wealth Management Agreement, the 2019 CZBank Twelfth Wealth Management Agreement, the 2019 CZBank Thirteenth Wealth Management Agreement, the 2019 CZBank Fourteenth Wealth Management Agreement, the 2019 CZBank Fifteenth Wealth Management Agreement, the 2019 CZBank Sixteenth Wealth Management Agreement, the 2020 CZBank First Wealth Management Agreement, the 2020 CZBank Second Wealth Management Agreement, the 2020 CZBank Third Wealth Management Agreement, the 2020 CZBank Fourth Wealth Management Agreement, the 2020 CZBank Fifth Wealth Management Agreement, the 2020 CZBank Sixth Wealth Management Agreement, the 2020 CZBank Seventh Wealth Management Agreement and the 2020 CZBank Eighth Wealth Management Agreement, pursuant to which the Company and its non- wholly owned subsidiary Refrigerator Marketing Company (as subscribers), subscribed for wealth management products in the aggregate subscription amount of RMB3,180,000,000 (equivalent to approximately HK$3,526,798,487 Note 1) from the CZBank (as issuer).

The Board is pleased to announce that, on 10 August 2020, Refrigerator Marketing Company as subscriber, entered into the 2020 CZBank Ninth Wealth Management Agreement to subscribe for the

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2020 CZBank Ninthth Wealth Management Product in the subscription amount of RMB300,000,000 (equivalent to approximately HK$333,834,084Note 2).

The Group utilised its idle funds for the payment of the subscription amount under each of the CZBank Wealth Management Agreements.

The 2020 CZBank Ninth Wealth Management Agreement by itself does not constitute discloseable transaction of the Company under Rule 14.06 of the Listing Rules. However, pursuant to Rule 14.22 of the Listing Rules, when the relevant subscription amounts under the CZBank Wealth Management Agreements are aggregated, the relevant applicable percentage ratios (as defined under the Listing Rules) of the transactions under the CZBank Wealth Management Agreements exceed 5% but are lower than 25%. Therefore, the transactions under the CZBank Wealth Management Agreements, on an aggregate basis, constitute discloseable transactions of the Company and are subject to the reporting and announcement requirements under the Listing Rules.

At the first meeting for the year 2020 held by the tenth session of the Directors on 14 April 2020 and the 2019 annual general meeting of the Company held on 23 June 2020, a resolution on entrusted wealth management of idle self-owned funds of the Company was considered and approved. Subject to the investment risk control by the Company and the principles of improving efficiency of the use of capital and increasing return on cash assets, the entrustment of idle self-owned funds of not more than RMB9,000,000,000 to commercial banks, trust companies, securities companies, fund companies, insurance companies, asset management companies and other financial institutions to conduct short-term and low-risk investment for wealth management was approved. The progress is now announced as follows:

Reference is made to the announcements of the Company dated 17 October 2019, 29 October 2019, 7 November 2019, 19 November 2019, 21 November 2019, 10 December 2019, 6 February 2020, 14 May 2020, 21 May 2020 and 27 July 2020 in respect of the 2019 CZBank First Wealth Management Agreement, the 2019 CZBank Second Wealth Management Agreement, the 2019 CZBank Third Wealth Management Agreement, the 2019 CZBank Fourth Wealth Management Agreement, the 2019 CZBank Fifth Wealth Management Agreement, the 2019 CZBank Sixth Wealth Management Agreement, the 2019 CZBank Seventh Wealth Management Agreement, the 2019 CZBank Eighth Wealth Management Agreement, the 2019 CZBank Ninth Wealth Management Agreement, the 2019 CZBank Tenth Wealth Management Agreement, the 2019 CZBank Eleventh Wealth Management Agreement, the 2019 CZBank Twelfth Wealth Management Agreement, the 2019 CZBank Thirteenth Wealth Management Agreement, the 2019 CZBank Fourteenth Wealth Management Agreement, the 2019 CZBank Fifteenth Wealth Management Agreement, the 2019 CZBank Sixteenth Wealth Management Agreement, the 2020 CZBank First Wealth Management Agreement, the 2020 CZBank Second Wealth Management Agreement, the 2020 CZBank Third Wealth Management Agreement, the 2020 CZBank Fourth Wealth Management Agreement, the 2020 CZBank Fifth Wealth Management Agreement, the 2020 CZBank Sixth Wealth Management Agreement, the 2020 CZBank Seventh Wealth Management Agreement and the 2020 CZBank Eighth Wealth Management Agreement, pursuant to which the Company and its non- wholly owned subsidiary Refrigerator Marketing Company (as subscribers), subscribed for wealth management products in the aggregate subscription amount of RMB3,180,000,000 (equivalent to approximately HK$3,526,798,487 Note 1) from the CZBank (as issuer).

The Board is pleased to announce that, on 10 August 2020, Refrigerator Marketing Company as subscriber, entered into the 2020 CZBank Ninth Wealth Management Agreement to subscribe for the 2020 CZBank Ninthth Wealth Management Product in the subscription amount of RMB300,000,000

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(equivalent to approximately HK$333,834,084Note 2).

The Group utilised its idle funds for the payment of the subscription amount under each of the CZBank Wealth Management Agreements. Summarised below are the major terms of the CZBank Wealth Management Agreement:

		2020 CZBank Ninth Wealth Management Agreement
(1)Date of	10 August 2020
subscription:
(2) Name of	CZBank RMB Wealth Management Product (Exclusive Finance No.1 90-Day
product:	Model (Product Code Z120090027))*
		(浙商銀行人民幣理財產品 (專屬理財 1 號 90 天型 Z120090027))
		(i) CZBank as issuer
(3)	Parties:	(ii) Refrigerator Marketing Company as subscriber
		To the best of the Directors' knowledge, information and belief having made all
		reasonable enquiry, CZBank and its ultimate beneficial owner(s) are third parties
		independent of the Company and its connected persons.
(4)	Type of	Open-end and non-principal-guaranteed with floating return
product:
(5)	Risk rating	Relatively low
of product:
(6)	Principal	RMB300,000,000
amount of	(equivalent to approximately HK$333,834,084Note 2)
subscription:
(7)	Currency of
subscription:	Renminbi
(8)	Term of
investment:	90 days
(9)	Expected
maximum rate	3.59% per annum
of return:
(10) Investment	The CZBank Wealth Management Products invest in bonds, money market
scope of the	instruments, interbank deposits, trust plans, assets earning rights, money market
product:	funds, bond funds, asset securitisation products etc. that meet the requirements of
		the regulators and asset management plans that are in accordance with the above-
		mentioned investment directions as well as other financial instruments that are
		permitted by policies, laws and regulations.
(11) Payment of	The principal and return will be paid by CZBank to Refrigerator Marketing
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return on	Company in a lump sum on the maturity date.
principal upon
maturity:
(12) Right of	Refrigerator Marketing Company is not entitled to early termination of the relevant
early	CZBank Wealth Management Product.
termination:
	CZBank is entitled to early termination of the relevant CZBank Wealth
	Management Product if Refrigerator Marketing Company is in breach of the
	relevant CZBank Wealth Management Agreement, or there arises any adverse
	situation which affects the purpose of the relevant CZBank Wealth Management
	Agreement.
REASONS FOR AND BENEFITS OF THE SUBSCRIPTIONS

The approval procedures of the subscriptions of wealth management products by the Company are in compliance with the relevant requirements of the "Management Measures for Conducting Entrusted Wealth Management Transactions" (《委託理財管理制度》) of the Company. The subscriptions of the CZBank Wealth Management Products are made from the idle self-owned funds of the Group. Such use of the idle self-owned funds for entrusted wealth management is beneficial for enhancing efficiency of use of the idle self-owned funds of the Group and will not adversely affect the daily operation and the principal business development of the Group as well as the interests of medium and small investors of the Company.

The Board considers that the subscriptions of the CZBank Wealth Management Products are on normal commercial terms, fair and reasonable, and in the interests of the Company and the Shareholders as a whole.

IMPLICATION UNDER THE LISTING RULES

The 2020 CZBank Ninth Wealth Management Agreement by itself does not constitute discloseable transaction of the Company under Rule 14.06 of the Listing Rules. However, pursuant to Rule 14.22 of the Listing Rules, when the relevant subscription amounts under the CZBank Wealth Management Agreements are aggregated, the relevant applicable percentage ratios (as defined under the Listing Rules) of the transactions under the CZBank Wealth Management Agreements exceed 5% but are lower than 25%. Therefore, the transactions under the CZBank Wealth Management Agreements, on an aggregate basis, constitute discloseable transactions of the Company and are subject to the reporting and announcement requirements under the Listing Rules.

INFORMATION ON THE COMPANY AND CZBANK

The Company

The Company and its subsidiaries are principally engaged in research and development, manufacturing and marketing of electrical products such as refrigerators, household air-conditioners, central air- conditioners, freezers, washing machines, kitchen appliances, etc.

CZBank

CZBank is a branch of China Zheshang Bank Co., Ltd.* (浙商銀行股份有限公司), a licensed bank incorporated under the laws of the PRC listed on the Stock Exchange (Stock code: 2016). China

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Zheshang Bank Co., Ltd.* (浙商銀行股份有限公司) is principally engaged in corporate banking, retail banking and treasury business.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms have the meanings set out below:

"2019 CZBank Eighth	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 29 October 2019 in relation to the subscription of the
Agreement"	2019 CZBank Eighth Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 29
	October 2019;
"2019 CZBank Eleventh	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 7 November 2019 in relation to the
Agreement"	subscription of the 2019 CZBank Eleventh Wealth Management Product,
	the particulars of which are disclosed in the announcement of the
	Company dated 7 November 2019;
"2019 CZBank Fifteenth	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 21 November 2019 in relation to the
Agreement"	subscription of the 2019 CZBank Fifteenth Wealth Management Product,
	the particulars of which are disclosed in the announcement of the
	Company dated 21 November 2019;
"2019 CZBank Fifth Wealth	the wealth management agreement entered into between the Company
Management Agreement"	and CZBank on 29 October 2019 in relation to the subscription of the
	2019 CZBank Fifth Wealth Management Product, the particulars of which
	are disclosed in the announcement of the Company dated 29 October
	2019;
"2019 CZBank First Wealth	the wealth management agreement entered into between Refrigerator
Management Agreement"	Marketing Company and CZBank on 11 September 2019 in relation to the
	subscription of the 2019 CZBank First Wealth Management Product, the
	particulars of which are disclosed in the announcement of the Company
	dated 17 October 2019;
"2019 CZBank Fourteenth	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 21 November 2019 in relation to the
Agreement"	subscription of the 2019 CZBank Fourteenth Wealth Management
	Product, the particulars of which are disclosed in the announcement of the
	Company dated 21 November 2019;
"2019 CZBank Fourth	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 17 October 2019 in relation to the
Agreement"	subscription of the 2019 CZBank Fourth Wealth Management Product,
	the particulars of which are disclosed in the announcement of the
	Company dated 17 October 2019;

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"2019 CZBank Ninth	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 29 October 2019 in relation to the subscription of the
Agreement"	2019 CZBank Ninth Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 29
	October 2019;
"2019 CZBank Second	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 26 September 2019 in relation to the subscription of the
Agreement"	2019 CZBank Second Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 17
	October 2019;
"2019 CZBank Seventh	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 29 October 2019 in relation to the subscription of the
Agreement"	2019 CZBank Seventh Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 29
	October 2019;
"2019 CZBank Sixteenth	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 10 December 2019 in relation to the
Agreement"	subscription of the 2019 CZBank Sixteenth Wealth Management Product,
	the particulars of which are disclosed in the announcement of the
	Company dated 10 December 2019;
"2019 CZBank Sixth	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 29 October 2019 in relation to the subscription of the
Agreement"	2019 CZBank Sixh Wealth Management Product, the particulars of which
	are disclosed in the announcement of the Company dated 29 October
	2019;
"2019 CZBank Tenth	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 7 November 2019 in relation to the
Agreement"	subscription of the 2019 CZBank Tenth Wealth Management Product, the
	particulars of which are disclosed in the announcement of the Company
	dated 7 November 2019;
"2019 CZBank Third	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 17 October 2019 in relation to the
Agreement"	subscription of the 2019 CZBank Third Wealth Management Product, the
	particulars of which are disclosed in the announcement of the Company
	dated 17 October 2019;
"2019 CZBank Thirteenth	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 19 November 2019 in relation to the subscription of the
Agreement"	2019 CZBank Thirteenth Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 19
	November 2019;

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"2019 CZBank Twelfth	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 19 November 2019 in relation to the subscription of the
Agreement"	2019 CZBank Twelfth Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 19
	November 2019;
"2020 CZBank Eighth	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 27 July 2020 in relation to the
Agreement"	subscription of the 2020 CZBank Eighth Wealth Management Product,
	the particulars of which are disclosed in the announcement of the
	Company dated 27 July 2020;
"2020 CZBank Fifth Wealth	the wealth management agreement entered into between the Company
Management Agreement"	and CZBank on 6 February 2020 in relation to the subscription of the
	2020 CZBank Fifth Wealth Management Product, the particulars of which
	are disclosed in the announcement of the Company dated 6 February
	2020;
"2020 CZBank First Wealth	the wealth management agreement entered into between the Company
Management Agreement"	and CZBank on 6 February 2020 in relation to the subscription of the
	2020 CZBank First Wealth Management Product, the particulars of which
	are disclosed in the announcement of the Company dated 6 February
	2020;
"2020 CZBank Fourth	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 6 February 2020 in relation to the subscription of the
Agreement"	2020 CZBank Fourth Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 6
	February 2020;
"2020 CZBank Ninth	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 10 August 2020 in relation to the
Agreement"	subscription of the 2020 CZBank Ninth Wealth Management Product;
"2020 CZBank Ninth	the wealth management product subscribed under the 2020 CZBank Ninth
Wealth Management	Wealth Management Agreement, the major terms of which are
Product"	summarized in this announcement;
"2020 CZBank Second	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 6 February 2020 in relation to the subscription of the
Agreement"	2020 CZBank Second Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 6
	February 2020;
"2020 CZBank Seventh	the wealth management agreement entered into between Refrigerator
Wealth Management	Marketing Company and CZBank on 21 May 2020 in relation to the
Agreement"	subscription of the 2020 CZBank Seventh Wealth Management Product,
	the particulars of which are disclosed in the announcement of the
	Company dated 21 May 2020;;

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"2020 CZBank Sixth	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 14 May 2020 in relation to the subscription of the 2020
Agreement"	CZBank Sixth Wealth Management Product, the particulars of which are
	disclosed in the announcement of the Company dated 14 May 2020;
"2020 CZBank Third	the wealth management agreement entered into between the Company
Wealth Management	and CZBank on 6 February 2020 in relation to the subscription of the
Agreement"	2020 CZBank Third Wealth Management Product, the particulars of
	which are disclosed in the announcement of the Company dated 6
	February 2020;
"Board"	the board of Directors;
"Company"	Hisense Home Appliances Group Co., Ltd. (海信家電集團股份有限公
	司), a company incorporated in the PRC with limited liability, whose
	shares are listed on the main board of the Stock Exchange and the
	Shenzhen Stock Exchange;
"connected person(s)"	has the meaning ascribed to it under the Listing Rules;
"CZBank"	a branch of China Zheshang Bank Co., Ltd.* (浙商銀行股份有限公司),
	a licensed bank incorporated under the laws of the PRC;
"CZBank Wealth	collectively, the 2019 CZBank First Wealth Management Agreement, the
Management Agreements"	2019 CZBank Second Wealth Management Agreement, the 2019 CZBank
	Third Wealth Management Agreement, the 2019 CZBank Fourth Wealth
	Management Agreement, the 2019 CZBank Fifth Wealth Management
	Agreement, the 2019 CZBank Sixth Wealth Management Agreement, the
	2019 CZBank Seventh Wealth Management Agreement, the 2019
	CZBank Eighth Wealth Management Agreement, the 2019 CZBank Ninth
	Wealth Management Agreement, the 2019 CZBank Tenth Wealth
	Management Agreement, the 2019 CZBank Eleventh Wealth
	Management Agreement, the 2019 CZBank Twelfth Wealth Management
	Agreement, the 2019 CZBank Thirteenth Wealth Management
	Agreement, the 2019 CZBank Fourteenth Wealth Management
	Agreement, the 2019 CZBank Fifteenth Wealth Management Agreement,
	the 2019 CZBank Sixteenth Wealth Management Agreement, the 2020
	CZBank First Wealth Management Agreement, the 2020 CZBank Second
	Wealth Management Agreement, the 2020 CZBank Third Wealth
	Management Agreement, the 2020 CZBank Fourth Wealth Management
	Agreement, the 2020 CZBank Fifth Wealth Management Agreement, the
	2020 CZBank Sixth Wealth Management Agreement, the 2020 CZBank
	Seventh Wealth Management Agreement, the 2020 CZBank Eighth
	Wealth Management Agreement and the 2020 CZBank Ninth Wealth
	Management Agreement;
"CZBank Wealth	the wealth management products subscribed under the CZBank Wealth
Management Products"	Management Agreements;
"Director(s)"	the director(s) of the Company;
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"Group"	the Company and its subsidiaries;
"HK$"	Hong Kong dollars, the lawful currency of Hong Kong;
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock Exchange;
"PRC"	the People's Republic of China;
"Refrigerator Marketing	Guangdong Hisense Refrigerator Marketing Co., Ltd. (廣東海信冰箱營
Company"	銷股份有限公司), a company incorporated in the PRC with limited
	liability and a non-wholly owned subsidiary of the Company;
"RMB"	Renminbi, the lawful currency of the PRC;
"Shareholder(s)"	the shareholder(s) of the Company;
"Stock Exchange"	The Stock Exchange of Hong Kong Limited; and
"%"	per cent.

Notes:

1. This amount is an aggregation of the HK$ amounts converted from RMB at exchange rates adopted in the announcement of the Company dated 10 October 2019, 29 October 2019, 7 November 2019, 19 November 2019, 21 November 2019, 10 December 2019, 6 February 2020, 14 May 2020, 21 May 2020 and 27 July 2020. The conversion is for the purpose of illustration only. No representation is made that any amount in HK$ or RMB could have been or could be converted at the relevant dates at the above rate or at any other rates or at all.
2. This amount has been converted from RMB into HK$ at an exchange rate of RMB0.89865 to HK$1 for the purpose of illustration only. No representation is made that any amount in HK$ or RMB could have been or could be converted at the relevant dates at the above rate or at any other rates or at all.

English translations of names in Chinese or another language in this announcement which are marked with "*" are for identification purposes only.

By order of the Board

Hisense Home Appliances Group Co., Ltd.

Tang Ye Guo

Chairman

Foshan City, Guangdong, the PRC, 10 August 2020

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

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