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

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)

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 SPD Bank Wealth Management Agreements in relation to subscription of wealth management products by the Company and its subsidiaries (as subscribers) from SPD Bank (as issuer), further particulars of which are listed out in the section headed "List of SPD Bank Wealth Management Agreements" in this announcement.

The Board is pleased to announce that, on 27 August 2020, Hisense (Beijing) Electric, the non-wholly owned subsidiary of the Company, as subscriber entered into the 2020 SPD Bank 19th Wealth Management Agreement to subscribe for the 2020 SPD Bank 19th Wealth Management Product in the subscription amount of RMB80,000,000 (equivalent to approximately HK$89,983,690Note 2).

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

The 2020 SPD Bank 19th 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 SPD Bank Wealth Management Agreements are aggregated, the relevant applicable percentage ratios (as defined under the Listing Rules) of the transactions under the SPD Bank Wealth Management Agreements exceed 5% but are lower than 25%. Therefore, the transactions under the SPD Bank Wealth Management Agreements, on an aggregate basis, constitute discloseable transactions of the Company and are subject to the reporting and announcement requirements

1

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 SPD Bank Wealth Management Agreements in relation to subscription of wealth management products by the Company and its subsidiaries (as subscribers) from SPD Bank (as issuer), further particulars of which are listed out in the section headed "List of SPD Bank Wealth Management Agreements" in this announcement.

The Board is pleased to announce that, on 27 August 2020, Hisense (Beijing) Electric, the non-wholly owned subsidiary of the Company, as subscriber entered into the 2020 SPD Bank 19th Wealth Management Agreement to subscribe for the 2020 SPD Bank 19th Wealth Management

Product in the subscription amount of RMB80,000,000 (equivalent to approximately HK$89,983,690Note 2).

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

		2020 SPD Bank 19th Wealth Management Agreement
(1)	Date of	27 August 2020
subscription:
(2)	Name of product:	"Wealth Bus Go No. 3 (90 days)"
(財富班車進取 3 號(90 天)).
		(i) SPD Bank as issuer
(3)	Parties:	(ii) Hisense (Beijing) Electric as subscriber
		To the best of the Directors' knowledge, information and belief having
		made all reasonable enquiries, SPD Bank and its ultimate beneficial
		owner(s) are third parties independent of the Company and its
		connected persons.
(4)	Type of product:	Non-principal-guaranteed with floating return
(5)	Risk rating of	Relatively low
product:
(6)	Principal amount	RMB80,000,000
of subscription:	(equivalent to approximately HK$89,983,690Note 2)
(7)	Currency of	Renminbi
subscription:

2

(8) Term of	90 days
investment:
(9) Expected
maximum rate of	3.65% per annum
return:
	The SPD Bank Wealth Management Products invest in cash, treasury
	bonds, local treasury bonds, central bank bills, policy financial bonds,
	credit bonds such as short-term financing bonds, medium-term notes,
	subordinated debt, enterprise bonds, corporate bonds, private
	placement of debt financing instruments, ABS, ABN and ABS
(10) Investment scope	subordinated bonds which are rated "AA" or above (rated "A-"
of the product:	(inclusive) or above in respect of credit bonds for which the SPD Bank
	is the lead underwriter), non-standardized debt assets which fulfill
	regulatory requirements such as repurchases, interbank lending,
	income receipts of securities dealers, preference shares, interbank
	deposits, currencies funds and credit assets, placement scheme and
	trust scheme of securities dealers/funds/insurance companies, etc.
	The principal and return (if any) will be deposited to the designated
(11) Payment of	account of the subscriber on the maturity date if it is a Working Day,
return on principal	or on the following Working Day if the maturity date falls on a
upon maturity:	non-Working Day, in which case the term of investment will be
	extended accordingly.
(12) Right of early	The SPD Bank is entitled to early termination of the relevant SPD
termination:	Bank Wealth Management Product.

REASONS AND BENEFITS FOR THE SUBSCRIPTIONS

The approval procedures of the subscriptions of wealth management products by the Company are in compliance with the relevant requirements of "Management Measures for Conducting Entrusted Wealth Management Transactions" (《委託理財管理制度》) of the Company. The subscriptions of the SPD Bank 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 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 SPD Bank Wealth Management Products are on normal commercial terms, fair and reasonable, and in the interests of the Company and Shareholders as a whole.

IMPLICATION OF THE LISTING RULES

The 2020 SPD Bank 19th 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 SPD Bank Wealth Management Agreements are aggregated, the relevant applicable percentage ratios (as defined under the Listing Rules) of the transactions under the SPD Bank Wealth Management Agreements exceed 5% but are lower than 25%. Therefore, the transactions under the SPD Bank 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.

3

INFORMATION OF THE COMPANY AND THE SPD BANK

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.

The SPD Bank

The SPD Bank is a branch of Shanghai Pudong Development Bank Co., Ltd.*(上海浦東發展銀行 股份有限公司), a licensed bank incorporated under the laws of the PRC listed on The Shanghai Stock Exchange (Stock code: 600000). The principal businesses of the SPD Bank include the provision of corporate and retail services, capital operation, investment banking, assets management, trust and financial leasing as well as other financial services.

LIST OF SPD BANK WEALTH MANAGEMENT AGREEMENTS

Name of agreement			Wealth management
		products subscribed
(collectively, the
Date of agreement /		(collectively, the
"SPD Bank Wealth	Subscriber
announcement	"SPD Bank Wealth
Management
		Management
Agreements")
		Products")
2019 SPD Bank 4th	29 April 2019 (agreement) /		2019 SPD Bank 4th
Wealth Management	Company	Wealth Management
29 April 2019 (announcement)
Agreement		Product
2019 SPD Bank 5th	9 May 2019 (agreement) /	Hisense	2019 SPD Bank 5th
Wealth Management	(Beijing)	Wealth Management
9 May 2019 (announcement)
Agreement	Electric	Product
2019 SPD Bank 7th	12 June 2019 (agreement) /	Air-conditioner	2019 SPD Bank 7th
Wealth Management	Marketing	Wealth Management
12 June 2019 (announcement)
Agreement	Company	Product
2019 SPD Bank 8th	12 June 2019 (agreement) /	Refrigerator	2019 SPD Bank 8th
Wealth Management	Marketing	Wealth Management
12 June 2019 (announcement)
Agreement	Company	Product
2019 SPD Bank 9th	20 June 2019 (agreement) /		2019 SPD Bank 9th
Wealth Management	Company	Wealth Management
20 June 2019 (announcement)
Agreement		Product
2020 SPD Bank 1st	27 February 2020 (agreement) /		2020 SPD Bank 1st
Wealth Management	Company	Wealth Management
27 February 2020 (announcement)
Agreement		Product
2020 SPD Bank 2nd	27 February 2020 (agreement) /	Hisense	2020 SPD Bank 2nd
Wealth Management	(Beijing)	Wealth Management
27 February 2020 (announcement)
Agreement	Electric	Product
2020 SPD Bank 3rd	2 April 2020 (agreement) /		2020 SPD Bank 3rd
Wealth Management	Company	Wealth Management
2 April 2020 (announcement)
Agreement		Product
2020 SPD Bank 4th	23 April 2020 (agreement) /	Refrigerator	2020 SPD Bank 4th
Wealth Management	Marketing	Wealth Management
23 April 2020 (announcement)
Agreement	Company	Product

4

2020 SPD Bank 5th	23 April 2020 (agreement) /		2020 SPD Bank 5th
Wealth Management	Company	Wealth Management
23 April 2020 (announcement)
Agreement		Product
2020 SPD Bank 6th	14 May 2020 (agreement) /	Refrigerator	2020 SPD Bank 6th
Wealth Management	Marketing	Wealth Management
14 May 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 7th	14 May 2020 (agreement) /		2020 SPD Bank 7th
Wealth Management	Company	Wealth Management
14 May 2020 (announcement)
Agreement		Product
2020 SPD Bank 8th	3 June 2020 (agreement) /		2020 SPD Bank 8th
Wealth Management	Company	Wealth Management
3 June 2020 (announcement)
Agreement		Product
2020 SPD Bank 9th	13 July 2020 (agreement) /	Refrigerator	2020 SPD Bank 9th
Wealth Management	Marketing	Wealth Management
13 July 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 10th	10 August 2020 (agreement) /	Refrigerator	2020 SPD Bank 10th
Wealth Management	Marketing	Wealth Management
10 August 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 11th	11 August 2020 (agreement) /	Air-conditioner	2020 SPD Bank 11th
Wealth Management	Marketing	Wealth Management
11 August 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 12th	18 August 2020 (agreement) /	Refrigerator	2020 SPD Bank 12th
Wealth Management	Marketing	Wealth Management
18 August 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 13th	18 August 2020 (agreement) /	Refrigerator	2020 SPD Bank 13th
Wealth Management	Marketing	Wealth Management
18 August 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 14th	18 August 2020 (agreement) /	Refrigerator	2020 SPD Bank 14th
Wealth Management	Marketing	Wealth Management
18 August 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 15th	18 August 2020 (agreement) /	Refrigerator	2020 SPD Bank 15th
Wealth Management	Marketing	Wealth Management
18 August 2020 (announcement)
Agreement	Company	Product
2020 SPD Bank 16th	18 August 2020 (agreement) /		2020 SPD Bank 16th
Wealth Management	Company	Wealth Management
18 August 2020 (announcement)
Agreement		Product
2020 SPD Bank 17th	18 August 2020 (agreement) /		2020 SPD Bank 17th
Wealth Management	Company	Wealth Management
18 August 2020 (announcement)
Agreement		Product
2020 SPD Bank 18th	18 August 2020 (agreement) /		2020 SPD Bank 18th
Wealth Management	Company	Wealth Management
18 August 2020 (announcement)
Agreement		Product

The aggregate subscription amount of the SPD Bank Wealth Management Products is RMB3,940,000,000 (equivalent to approximately HK$4,404,513,762Note 1).

DEFINITIONS

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

5

"2020 SPD Bank 19th Wealth	the wealth management agreement entered into between
Management Agreement"	Hisense (Beijing) Electric and the SPD Bank on 27 August
	2020 in relation to the subscription of the 2020 SPD Bank
	19th Wealth Management Product;

"2020 SPD Bank 19th Wealth Management Product"

"Air-conditioner Marketing

Company"

"Board"

"Company"

"Wealth Bus Go No. 3 (90days)" (財富班車進取 3 號(90 天)), a wealth management product issued by the SPD Bank, the major terms of which are summarised in this announcement;

Qingdao Hisense Air-conditioner Marketing Co., Ltd.* (青島 海信空調營銷股份有限公司), a subsidiary of the Company;

the board of directors of the Company;

Hisense Home Appliances Group Co., Ltd., a company incorporated in the PRC with limited liabilities, whose shares are listed on the main board of the Hong Kong Stock Exchange and the Shenzhen Stock Exchange;

"connected person(s)"	has the meaning ascribed to it under the Listing Rules;
"Director(s)"	the director(s) of the Company;
"Group"	the Company and its subsidiaries;
"Hisense (Beijing) Electric"	Hisense (Beijing) Electric Co., Ltd.* (海信（北京）電器有限
	公司), a non-wholly owned subsidiary of the Company;
"HK$"	Hong Kong dollars, the lawful currency of Hong Kong;
"Hong Kong Stock	The Stock Exchange of Hong Kong Limited;
Exchange"
"Listing Rules"	the Rules Governing the Listing of Securities on the Hong
	Kong Stock Exchange;
"PRC"	the People's Republic of China;
"Refrigerator Marketing	Guangdong Hisense Refrigerator Marketing Co., Ltd.* (廣東
Company"	海信冰箱營銷股份有限公司), a subsidiary of the Company;
"Renminbi" or "RMB"	the lawful currency of the PRC;

6

"Shareholder(s)"	the shareholder(s) of the Company;
"SPD Bank"	a branch of Shanghai Pudong Development Bank Co., Ltd.
	*( 上 海 浦 東 發 展 銀 行 股 份 有 限 公 司 ), a licensed bank
	incorporated under the laws of the PRC;
"SPD Bank Wealth	the SPD Bank wealth management agreements as listed in the
Management Agreements"	section headed "List of SPD Bank Wealth Management
	Agreements" in this announcement;
"SPD Bank Wealth	the wealth management products subscribed under the SPD
Management Products"	Bank Wealth Management Agreements;
"Working Day"	the day on which the SPD Bank is generally open for
	business, other than Saturday, Sunday (except for days on
	which it is open for business due to adjustment of Chinese
	holidays) or any other statutory holidays in the PRC;
"%"	per cent; and
"*"	for identification purpose only.

Notes:

1. This amount is an aggregation of the HK$ amounts converted from RMB at the exchange rates that were used in the announcements of the Company dated 29 April 2019, 9 May 2019, 16 May 2019, 12 June 2019, 20 June 2019, 27 February 2020, 2 April 2020, 23 April 2020, 14 May 2020, 3 June 2020, 13 July 2020, 10 August 2020, 11 August 2020 and 18 August 2020. The conversions were 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 RMB0.88905 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.

By order of the Board of

Hisense Home Appliances Group Co., Ltd.

Tang Ye Guo

Chairman

Foshan City, Guangdong, the PRC, 27 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.

7