Medlive Technology Co., Ltd. — Annual Report 2013

Apr 24, 2014

Contents

Company Profile . . . . . . . . . . 1
Major Events Calendar . . . . . . . . . 2
Chairman s' Statement . . . . . . . . . 4
Management Discussion and Analysis . . . . . . . . 6
Corporate Governance Report . . . . . . . . . 17
Profiles of ,Directors Supervisors & Members the of Senior Management . . . . 31
Report the of Directors . . . . . . . . . 34
Report the of Supervisory Committee . . . . . . . . 58
Corporate Information . . . . . . . . . 60
Financial Statements Prepared in accordance with China Accounting Standards for Business Enterprise . . . 61

Profile Company

white of manufacturers largest the of one present at is") Company "the (Limited Company Holdings Electrical Kelon Hisense namely ,names brand three with ,")China "or" PRC "the (China of Republic s'People the in appliances electrical household and 1984 in Founded ."Marks known-Well Chinese "as appraised been have which ,"Ronshen "and" Kelon ","Hisense" the in engaged principally is Company the ,PRC the ,Province Guangdong ,City Foshan ,District Shunde in headquartered In .machines washing and freezers ,conditioners-air ,refrigerators as such appliances electrical household white of production and Limited Kong Hong of Exchange Stock The of boards main the on listed were Company the of shares the 1999, and 1996 .respectively Exchange Stock Shenzhen

,"Company the up build to people its of talents the and technology on relying "of philosophy core its to adheres Company The of volume sales and production The .development s'Company the for force driving basic the as" technology "considers and superior the on Leveraging .years consecutive for China in highest the among been have conditioners-air and refrigerators its the in reputation good won has Company the ,products its in technology high of application and technology refrigeration awarded was refrigerators Hisense 2013, In .products and technologies its for honors many awarded been has and ,industry "Award Refrigerator end-High of Summit "the won refrigerators Ronshen while ,"Award Refrigerator Intelligent Leading "the Only The "of title the won refrigerators Ronshen; Industry Refrigerator Chinese the of Conference Annual Sixth the at Protection Environmental Conservation Energy International the from" Refrigerators Saving-Energy for Product Recommended were ,conditioners-air Kelon and conditioners-air Hisense ,brands major two the with ,Company the); IEEPA (Association Quality Industry "the ,"Award Contribution Industry Outstanding "the namely ,prizes grand industry three awarded proudly Industry conditioner-Air Chinese 2013-2014 the at" Award Benchmark Efficiency High Years Ten "the and" Award Benchmark the obtained conditioners-air slim-ultra series" 8A Pie Apple "Hisense; industry the in position leading its testifying ,Summit Outlook the receive to product only the being ,"China in Competition Patent Fifteenth the "at" Award Gold Design Outlook" Hisense both and; Forum Innovation World the at" Award Innovation World Kangaroo Gold "the awarded was conditionerair intelligent Hisense; year this industry appliance home the in China in Competition Patent the in Award Gold Design .Prize Product Appliance the awarded were conditioners-air series Supreme Intelligent" 8A Pie Apple "Hisense and refrigerator

reforming ,quality service improving ,advantages product building "of direction operating the to adhere will Company The research profound for pursuit incessant the in ,"efficiency and scale ensuring and efficiency system improving ,model marketing technological reinforce to experience user of improvement and intellectualization product on focus a with ,development and sales product the enhance ,line product end-high the perfect further will and ,competitiveness product boost and innovations in capacity integrated s'Company the of enhancement round-all the by paralleled ,model marketing the reform and structure in growth steady a achieve to .,etc sustainability and scale market ,grade product ,quality service ,level technology of areas the .share market and efficiency ,scale

January

,Street Ronggui at Race Run Long Day s'Year New" Cup Kelon Hisense "th26 the sponsored Kelon Hisense 2013, January In ,Street Ronggui at event sports major this sponsor to Kelon Hisense for year consecutive th25 the was This .District Shunde 1988. since District Shunde

March

series Supreme Intelligent 89" 8A Pie Apple "Hisense and T/WDGVBP-628BCD refrigerator Hisense both 2013, March In .Prize Product Appliance the awarded were conditioners-air

Launch Refrigerators of Series New" feel i "cum Celebration Anniversary th30 the held refrigerators Ronshen 2013, March In .announced was" Ecology Original Enjoy to life Simple "of philosophy brand the which at ,Shanghai in Ceremony

April

on limit the and ,"Kelon Hisense "to" Kelon ST "from reinstated was shares A s'Kelon Hisense of name short 2013, April In 10%. to 5% from restored was shares A the of change price trading daily

May

the awarded was WGBPET-558BCD Hisense .Summit Industry Refrigerator China 2012-2013 the at" Award Benchmark saving-Energy "the received refrigerators Ronshen while ,"Award Benchmark Quality "the won refrigerators Hisense 2013, May In of Star "the received T/WVBP-642BCD Hisense whereas ,year the of industry refrigerator the of award" Intelligence of Star" award" door-Multi Classic of Star "the won WY-398BCD Ronshen and ,year the of industry refrigerator the of award" Health .year the of industry refrigerator the of

June

refrigerators Ronshen while ,"Award Refrigerator Intelligent Leading "the awarded was refrigerators Hisense 2013, June In of Summit "the received A/WDGVBP-256BCD refrigerator Hisense and ,"Award Refrigerator end-High of Summit "the won at" Award Quality Best "the awarded was A/WPMB-256BCD refrigerator Ronshen whereas ,"Award Innovation Technology .Industry Refrigerator Chinese the of Conference Annual Sixth the

August

proudly were ,conditioners-air Kelon and conditioners-air Hisense ,brands major two the with ,Kelon Hisense 2013, August In Benchmark Quality Industry "the ,"Award Contribution Industry Outstanding "the namely ,prizes grand industry three awarded ,Summit Industry conditioner-Air Chinese 2013-2014 the at" Award Benchmark Efficiency High Years Ten "the and" Award conditioner-air mounted-wall inverter slim-ultra VV" series Wind Jiangnan "conditioners-air Kelon and conditioner-air mountedwall inverter slim-ultra amethyst luxury 89" series 8A Pie Apple "Hisense .industry the in position leading its testifying "2013 Year of Refrigerator of Saving-Energy of Star "and" 2013 Year of Refrigerator of Quality of Star "the awarded were ."Award Figure Industry "the received Zhigang Wang .Dr ,conditioners-air Hisense of scientist Chief .respectively

September

in conference a held) IEEPA (Association Protection Environmental Conservation Energy International 2013, September In ."Refrigerators Saving-Energy for Product Recommended Only The "of title the won refrigerators Ronshen and ,Beijing

the launched officially and ceremony launch product joint a held com.Weibo and conditioners-air Hisense 2013, September In .conditioner-air intelligent internet first s'world

November

at" Award Gold Design Outlook "the obtained conditioners-air slim-ultra series" 8A Pie Apple "Hisense 2013, November In Patent the in Award Gold Design Outlook the receive to product only the being ,"China in Competition Patent Fifteenth the" .year this industry appliance home the in China in Competition

at Advantages with Enterprises Property Intellectual "of batch first the in be to assessed was Kelon Hisense 2013, November In .Office Property Intellectual State the by" Level National the

the was This .year the of freezer millionth 1 the produced Shunde in factory freezer s'Kelon Hisense 2013, November 6 On .units million 1 of record the broke production freezer s'Kelon Hisense time first

December

,company 500 Fortune a ,Electric Emerson with conference press a held jointly conditioners-air Hisense 2013, December In The .time first the for world the to technology) VVI" (enthalpy scroll inverter jet "the announced officially and Beijing in the and ,environment cold extremely in conditioners-air of attenuation heating of problem global the overcame technology many represented also technology said The 45%. by performance heat the increase forcibly and sustain can conditioners-air international maintained and patents invention national obtained have items 5 which of ,application of terms in innovations .positions leading

World the at" Award Innovation World Kangaroo Gold "the awarded was conditioner-air intelligent Hisense 2013, December In .Forum Innovation

Intelligent Best the "as selected were conditioners-air series Supreme Intelligent 890 8A Pie Apple Hisense 2013, December In China of Review Industry Appliance Household China 2013 the in" 2013 of Industry conditioner-Air China of Product .News Electronic

as session th4 the of" Citizens Foshan of Brand Corporate Favorite "the as selected was Kelon Hisense 2013, December In .team expert an by assessed and citizens Foshan by voted

safety class-first for assessment site-on the passed successfully Kelon Hisense of bases production seven 2013, December In .standardization production

:Shareholders Dear

.("Period Reporting "the (2013 December 31 ended year the for Company the of report annual the present to pleased am I

swifter with ,growth stable overall of trend a showed industry appliances home domestic the ,Period Reporting the During first the over policies subsidy saving energy the by stimulated as sectors conditioner-air and refrigerator the both in growth magnitude the ,year the of half second the in policies subsidy saving energy the of withdrawal the Following .year the of half stronger a retained continually sector conditioner-air the whereas ,considerably decreased business refrigerator the of growth of lackluster recorded and markets overseas from demand sluggish the by influenced was market export The .growth of trend ,Department Customs the and) CMM (Limited Company Monitor Market China from statistics the to According .performance the of that and 7.66%, of growth year-to-year a recorded 2013 in market refrigerator domestic the of volume retail the products freezer and refrigerator the of volume export the while ,year-to-year 14.92% by grew market conditioner-air domestic the Under .year-to-year 0.86% by increased products conditioner-air the of that and 6.92%, of growth year-to-year a marked intelligentization of trend the ,intelligence household of popularization the and standards efficiency new the of implementation .limelight the into further stepped appliances home of development oriented end-high and

,advantages product building "of strategies operating the to adhered strictly Company the ,Period Reporting the During "efficiency and scale ensuring and markets international the exploring ,efficiency system enhancing ,model marketing reforming revenue operating recorded Company The .efficiency and scale operating the in increases steady achieved successfully and listed the of holders equity to attributable profit net 28.49%, of increase year-to-year a representing ,million 24,360RMB of loss and profit recurring-non deducting after profits net; 0.92RMB of share per earnings and million 1,239RMB of company sustained Company the of revenue operating main The 80.50%. of increase year-to-year a representing ,million 1,078RMB of growth year-to-year a representing 41.62%, for accounting business conditioner-air the from revenue; 19.44% of growth yearto-year a representing 45.55%, for accounting business refrigerator the from revenue the which of ,growth steady and stable year-to-year a representing ,million 15,624RMB of revenue operating main a recorded business sales domestic the; 38.54% of representing ,million 6,563RMB of revenue operating main a recorded business sales export the whereas 35.45%, of growth substantially and ,efficiency capital improved ,capital its utilized actively Company The 12.79%. of growth year-to-year a The .points percentage 6.25 by decreased Company the of ratio asset-to-debt the ,time same the At .costs finance improved .improved further was position financial s'Company

realize to strived Company the of products refrigerator the ,technology of development and research of respect In on staying through experience user and technologies preservation food ,saving energy of areas the in upgrades comprehensive ,"preservation food and saving energy "of foundation on building and" intelligentization "of track development strategic the launched was refrigerators intelligent series Bauna Hisense the of generation second The .directions technological core its of internet and management health ,management food of continuation the of foundation the in which for ,Company the by food the ,time same the at and accomplished been has internet the with refrigerator of connection the ,functions service things of products conditioner-air The .experience user the improve further to enhanced been has function management information inverter of technology core the utilizing fully while" intelligentization and health ,saving energy "on focused also Company the .conditioners-air of control intelligent distance-long realized that products conditioner-air internet the market to conditioning-air Series Supreme Intelligent 8-89A Pie Apple Hisense ,intelligentization in technology innovative original the on Capitalizing household of vane wind "the as known-well is which ,"Expo World Appliance China "the at" Prize Product conditioner-Air Appliance Electrical Household China "the awarded were conditioners-air cabinet and conditioners-air mounted-wall First "the awarded was refrigerators intelligent series Bauna Hisense of generation second The ."China in appliances electrical Funkausstellung International the at" Award Innovation Product Appliances Household China of Session Ninth the of Prize invention 152 including ,total in patents 525 for applied has Company the ,Period Reporting the During .Germany in held) IFA( Design Outlook "the obtained conditioners-air slim-ultra series" 8A Pie Apple "Hisense .patents appearance 166 and patents and Office Property Intellectual State the by organized China in Competition Patent Fifteenth the at" China in Award Gold the in" China in Award Gold Design Outlook "receive to product only the being ,Organization Property Intellectual World the .year this industry appliance home

Statement s'Chairman

,macroeconomy domestic the of adjustments structural continual as such factors unfavorable 2014, into ahead Looking in growth economic sluggish general and ,cost labour of increase continued ,rates exchange of fluctuation intensified background the under ,However .Company the of operation the on pressure increasing exert will markets emerging international ,policies urbanization new ,upgrade and transition economic ,reform depth-in round-all s'nation the for deployment strategic of whereas ,consumption s'citizen the motivate further will China in measures other and system distribution income the of reform the within replacement product and upgrade consumption the accelerate will intelligence household the of popularization the will States United the and Europe in countries developed in recovery economic ,hand other the On .industry goods white The .Company the of development the to opportunities advantageous bringing ,trading export from demand the invigorate reforming ,quality service improving ,advantages product building "of strategies operating the uphold rigidly will Company operating the to respond proactively to" efficiency and scale securing and efficiency system enhancing ,model marketing on focus to innovations product and technology as well as ,upgrades sector and industry of opportunities the on ride ,pressure product establish and competitiveness product in improvements continue to" demand consumer the meeting "of objective the to; products end-high of marketing the intensify and ,products end-high developing of strategy the to adhere to; advantages product the enhancing of efforts the in direction the as complaint zero and goal ultimate the as" satisfaction customer "take up set and management) score promoter net (NPS introduce to; level service in improvements accelerating ,quality service and channels of construction the for driving continue to; products the of score promoter net the improve to system controlling NPS efficiency develop continually to; turnaround and capability marketing the enhance ,markets grade fourth and third the for and efficiency ,scale the in increase steady achieve to order in efficiency system entire the enhance ,measures enhancement .Company the of share market

from support strong and care the to attributable is This 2013. in performance its in growth substantial recorded Company The of board the of leadership outstanding the as well as ,government the and partners ,institutions financial ,shareholders all my express to like would I .staff all of dedication continual the and management the and committee supervisory the ,directors the with ,that believe We .year forthcoming the in support continued your receive to hope and them of one every to gratitude I .level new a to advanced be will Company the of development the ,vision governance innovative an and spirit corporate newbrand a ,successively objectives our of realization the ,staff our of commitment and efforts concerted the ,planning scrupulous .all you with Kelon Hisense of future better a sharing to forward look earnestly also

Guo Ye Tang Chairman 2014 March 27 ,PRC The

OVERVIEW INDUSTRY .I

with ,growth stable overall of trend a showed industry appliances home domestic the ,Period Reporting the During policies subsidy saving energy the by stimulated as sectors conditioner-air and refrigerator the both in growth swifter of half second the in policies subsidy saving energy the of withdrawal the Following .year the of half first the over conditioner-air the whereas ,considerably decreased business refrigerator the of growth of magnitude the ,year the from demand sluggish the by influenced was market export The .growth of trend stronger a retained continually sector Company Monitor Market China from statistics the to According .performance lackluster recorded and markets overseas observed 2013 in market refrigerator domestic the of volume retail the ,Department Customs the and) CMM (Limited while ,year-to-year 14.92% by grew market conditioner-air domestic the of that and 7.66%, of growth year-to-year a and standards efficiency new the of implementation the Under .year-to-year 0.86% by increased products conditionerair the of that and 6.92%, of growth year-to-year a marked products freezer and refrigerator the of volume export the home of development oriented end-high and intelligentization of trend the ,intelligence household of popularization the .limelight the into further stepped appliances

OPERATION S'COMPANY THE OF ANALYSIS .II

Situation Overall

,advantages product building "of strategies operating the to adhered strictly Company the ,Period Reporting the During and scale ensuring and markets international the exploring ,efficiency system enhancing ,model marketing reforming recorded Company The .efficiency and scale operating the in increases steady achieved successfully and" efficiency to attributable profit net 28.49%, of increase year-to-year a representing ,million 24,360RMB of revenue operating after profits net; 0.92RMB of share per earnings and million 1,239RMB of company listed the of holders equity The 80.50%. of increase year-to-year a representing ,million 1,078RMB of loss and profit recurring-non deducting refrigerator the from revenue the which of ,growth steady and stable sustained Company the of revenue operating main conditioner-air the from revenue; 19.44% of growth year-to-year a representing 45.55%, for accounting business a recorded business sales domestic the; 38.54% of growth year-to-year a representing 41.62%, for accounting business sales export the whereas 35.45%, of growth year-to-year a representing ,million 15,624RMB of revenue operating main 12.79%. of growth year-to-year a representing ,million 6,563RMB of revenue operating main a recorded business

substantially and ,efficiency capital improved ,capital its utilized actively Company the ,Period Reporting the During .points percentage 6.25 by decreased Company the of ratio asset-to-debt the ,time same the At .costs finance improved .improved further was position financial s'Company The

orientation Technology

upgrades comprehensive realize to strived Company the of products refrigerator the ,Period Reporting the During strategic the on staying through experience user and technologies preservation food ,saving energy of areas the in core its ,"preservation food and saving energy "of foundation on building and" intelligentization "of track development by launched was refrigerators intelligent series Bauna Hisense the of generation second The .directions technological of internet and management health ,management food of continuation the of foundation the in which for ,Company the ,time same the at and accomplished been has internet the with refrigerator of connection the ,functions service things second The .experience user the improve further to enhanced been has function management information food the of Session Ninth the of Prize First "the awarded was refrigerators intelligent series Bauna Hisense of generation .Germany in held) IFA (Funkausstellung International the at" Award Innovation Product Appliances Household China the During .technologies preservation food and saving energy in advantages its maintained has Company the ,Moreover daily the which of product refrigerator door-three saving energy grade-top a launched Company the ,Period Reporting Ronshen 2013, September In .refrigerator door-three for low historical a setting ,Wh k0.28 oly is consumption power International from product refrigerator saving energy recommended only the of title the won again once refrigerators second the ,technologies preservation food of respect In .Association Protection Environmental Conservation Energy degree360- and vent multiple of design the integrate products refrigerator new series feel i Ronshen of generation Summit "the with honored were and technology preservation food mist nano exclusive the with along ,fans centrifugal the of Award Quality Best "the and" 2013 in China of Industry Refrigerator the of Award Refrigerator end-High of .Industry Refrigerator Chinese of Conference Annual Sixth the at" 2013 in China of Industry Refrigerator

health ,saving energy "on focused also Company the of products conditioner-air the ,Period Reporting the During original the on Capitalizing .conditioners-air of control intelligent distance-long realized that products conditionerair internet the market to conditioning-air inverter of technology core the utilizing fully while" intelligentization and conditioner-Air Appliance Electrical Household China the awarded were conditioners-air cabinet and conditionersair mounted-wall Series Supreme Intelligent 8-89A Pie Apple Hisense ,intelligentization in technology innovative electrical household of vane wind "the as known-well is which ,Expo World Appliance China the at Prize Product in upgrades technical ,intelligentization in technology innovative abovementioned the Besides ."China in appliances development and research the in Electric Emerson with cooperated has Conditioner-Air Hisense .products conditionerair of development and research the in Company the for foundation the remained saving energy and efficiency high forcibly and sustain to conditioners-air enable which ,successfully technology) VVI" (enthalpy scroll inverter jet "the of .degrees 20 minus of environment cold a in even heating forceful attain to and 45% by performance heat the increase ,Grid State the and Center Information State the by organized-co Summit Industry Refrigerator China 2013-2014 the At namely ,prizes grand industry three won Conditioner-Air Kelon and Conditioner-Air Hisense brands major two the High Years Ten "the and" Award Benchmark Quality Industry "the ,"Award Contribution Industry Outstanding "the Refrigerator of Saving-Energy of Star "and" 2013 Year of Refrigerator of Quality of Star "the awarded were conditionerair mounted-wall inverter slim-ultra VV" series Wind Jiangnan "conditioners-air Kelon and conditioner-air mountedwall inverter slim-ultra amethyst luxury 89 series 8A Pie Apple Hisense whereas"; Award Benchmark Efficiency .respectively" 2013 Year of

166 and patents invention 152 including ,total in patents 525 for applied has Company the ,Period Reporting the During Outlook "the obtained conditioners-air slim-ultra series" 8A Pie Apple "Hisense 2013, November In .patents appearance Outlook "receive to product only the being ,China in Competition Patent Fifteenth the at" China in Award Gold Design .year this industry appliance home the in China in Competition Patent the of" China in Award Gold Design

business freezer and Refrigerator

enriching further through structure product its enhance to sought actively Company the ,Period Reporting the During competitiveness the increase to order in refrigerators door-multi ,door-French as such products end-high of portfolio the style-French the of share market retail the ,CMM of statistics the to According .products freezer and refrigerator of and technology in upgrades and innovations With 2012. in than higher points percentage 6.86 was 2013 in refrigerators refrigerator the ,standards quality product in improvements and ,competitiveness product in enhancements ,functions s'Company the ,CMM of statistics the to According .growth stable achieved Company the of business freezer and representing and industry the in position second the securing 17.60%, of share market retail a acclaimed refrigerators refrigerator the ,capacity production of layout the to As 2012. to compared as points percentage 1.26 of increase an the enhanced further which 2013, of quarter fourth the in smoothly production commenced Shandong in base production .Company the of freezers and refrigerator for bases production of layout production

business conditioner-Air

product in efforts the reinforce to continued Company the of business conditioner-air the ,Period Reporting the During competitiveness the increasing in persisting while ,management quality product improving and development and research as well as ,appearance and function in enhancements ,upgrade and innovation technological through products the of epitomized products intelligent and artistic quality high of series a launched Company The .quality in improvements statistics the to According .sales product stimulate and market end the in image the improve effectively to" conditionersair mounted-wall and conditioners-air cabinet of series artistic 89 – product new flagship 8A Pie Apple "the by 54.32% of growth year-to-year recorded" Kelon "and" Hisense "brands two the under conditioners-air ,CMM of percentage 1.54 by increased Company the of conditioner-air the of share market retail the and ,industry conditionerair the of increase of level overall the outperforming significantly 2013, in sales retail in respectively 24.83% and international the exploring of path the in persisted Company the ,export of respect In 2012. to compared as points Company the ,Department Customs the of statistics the to According .exports of scale the expanding and market 2013, in Company the of products conditioner-air of volume export the in 10.33% of growth year-to-year a recorded conditioner-air of margin profit gross the ,time same the At .industry the of growth 0.86% the surpassing significantly to continued segment conditioner-air the of profitability the and points percentage 2.1 of increase a recorded products unitization as well as ,measures enhancing efficiency other and informatization of implementation the under increase .efforts reducing cost other and

PERIOD REPORTING THE DURING FINANCIALS PRINCIPAL TO ANALYSIS .III

indicators financial and data accounting Major) I(

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

No √Yes□

Item	2013	2012	Increase or decrease as compared to year last (%)	2011
Operating revenue (RMB (	24,360,021,308.47	18,958,915,310.09	28.49	18,488,663,163.12
Net profits attributable to shareholders listed of company (RMB(	1,239,005,051.61	717,764,680.40	72.62	227,015,126.87
Net profits after deducting non recurring profit loss and attributable to shareholders of listed company (RMB (	1,077,904,382.91	597,180,784.22	80.50	196,373,292.36
cash Net from flow operating activities (RMB (	218,798,349.53	1,098,192,778.13	(80.08)	366,265,192.49
Basic earnings share per /RMB ( (share	0.92	0.53	73.58	0.17
Diluted earnings share per RMB( (share/	0.92	0.53	73.58	0.17
Weighted average rate return of net on (%) assets	58.16	61.95	(3.79)	33.72
			Increase or decrease as compared of end to
Items	31 December 2013	31 December 2012	year last (%)	31 December 2011
Total assets (RMB (	11,964,709,290.58	9,200,334,640.73	30.05	7,635,439,578.36
Net assets attributable to shareholders listed of company (RMB(	2,748,731,080.83	1,512,042,166.49	81.79	805,123,597.33

Amounts and Items Loss and Profit Recurring-Non) II(

				Unit RMB :
Item	Amount of 2013	Amount of 2012	Amount of 2011	Description
Profits losses or from disposal non of current (assets including part the written for off provision for impairment on (assets	23,631,537.09	97,537,681.25	16,528,938.47
Government grants recognized the in profits (losses or excluding government grants closely related the to Company s' business are and received with fixed amounts with or fixed percentage based on unified standards promulgated by government (	82,700,643.38	23,057,674.18	21,704,167.78
Corporate restructuring (costs staff .g.e relocation costs costs and during the of course integration (	) 52,492,777.86 (	0.00	0.00
Reversal of provision for impairment of loss account receivables to subject separate impairment testing	89,950,024.68	0.00	0.00
non Other operating- income and expenses other the than aforementioned items	14,306,916.33	3,348,427.38	) 3,467,732.46 (
Less Effect : income of tax	4,249,768.03	2,187,048.64	1,948,610.72
of Effect minority interests tax after ( ) (	7,254,093.11 (	1,172,837.99	2,174,928.56
Total	161,100,668.70	120,583,896.18	30,641,834.51	—

Business Principal of Analysis) III(

Income 1.

?services of provision from income its than larger goods of sales from income s'Company the Is

No □Yes√

				Increase or
				decrease as
				compared to
				corresponding
				period
	ten (Item thousand			year last
Industry Category	(sets/units	2013	2012	(%)
Home appliances	Sales volume	1,566	1,264	23.89
manufacturing industry	Production volume	1,605	1,283	25.10
	Inventory volume	152	113	34.51

Costs 2.

						or Increase
						as decrease
		2013		2012		to compared
			to Weight		to Weight corresponding
			operating costs		operating costs	period year last
Industry Category Item		Amount	) %(	Amount	(%)	(%)
Home appliances	materials Raw	1,542,152.64	90.23	1,245,834.25	91.86	(1.63)
manufacturing industry	wages Staff	51,646.53	3.02	36,017.61	2.66	(0.36
	Depreciation	28,402.07	1.66	23,805.38	1.76	(0.10)

Expense 3.

thousand ten RMB :Unit

thousand ten RMB :Unit

			Increase or decrease as compared to corresponding period year last
Expense Item	2013	2012	%(	Reason) the for changes
Sales expense	367,812.22	273,189.44	34.64	due Mainly increase to scale in of and sales intensification market of investment the by Company the during Reporting Period
Management expense	81,445.26	64,089.35	No 27.08	significant change
Finance expense	( ) 2,747.44	3,899.96	A/N	due Mainly increase to the in 'Company efficiency s active and capital utilization the during Reporting Period
Income expense tax	5,361.89	1,054.84	408.31	Mainly to due in increase companies total' of amount profit

Flow Cash 4.

			Unit ten RMB : thousand Increase or decrease as compared to corresponding period
Item	2013	2012	year last (%)
total-Sub cash of inflows from operating activities	1,456,341.79	1,043,373.56	39.58
total-Sub cash of outflows from operating activities	1,434,461.96	933,554.28	53.66
Net flows cash from operating activities	21,879.83	109,819.28	(80.08)
total-Sub cash of inflows from investing activities	9,315.94	12,326.66	(24.42)
total-Sub cash of outflows from investing activities	56,571.70	16,323.81	246.56
Net flows cash from investing activities	) (47,255.76	(3,997.15)	1,082.24
total-Sub cash of inflows from financing activities	47,399.58	176,720.64	(73.18)
total-Sub cash of outflows from financing activities	26,043.63	270,858.12	(90.38)
Net flows cash from financing activities	21,355.95	) (94,137.48	(122.69)
Net increase cash in cash and equivalents	(4,067.42)	11,684.65	(134.81)

• increase to due mainly ,year-to-year 80.08% by decreased activities operating from flows cash Net) 1( the during discount cash on gains obtain to Company the by payment cash of proportion in ;Period Reporting the of end the at receivable notes of increase and ,Period Reporting
• of increase to due mainly ,year-to-year decreased activities investing from flows cash Net) 2( ;Period Reporting the during assets fixed in investment
• net in increase to due mainly ,year-to-year increased activities financing from flows cash Net) 3( .Period Reporting the during receivable accounts factoring

expenses development and Research 5.

development and research in investment increase to continued Company the ,Period Reporting the During and upgrade the on focused Company the ,development and research of efficiency the improve and research launching Through ."technology intelligent "and" technology saving-energy "its of innovation Foaming Conductivity Low Density Low "as such products refrigerator on projects development and conditioner-air on projects development and research and" Applications VIP on Research ","Technology Connection point-Two for Technology) Carrier Line Power (PLC Using conditioner-Air "as such products Inverter Operated Temperature High Ultra of Development and Research ","Communication and New Outdoor for Technology Efficiency High Noise Low of Application and Development ","Conditioner-Air for Exchanger Heat Group Pipe of Application and Research ","Technology Conditioning-Air ,"Technology Key Purification Air New of Application and Development ","Conditioner-Air of Case Body intelligentization of level and saving energy of performance the improve to strived Company the core s'Company the and competitiveness market' products its enhance to order in products its of industrial s'Company the for support technological strong provide would which ,competitiveness .advancement

segments business principal of Description) IV(

					Unit	ten RMB : thousand
				Increase or	Increase or
				decrease in	decrease
				revenue from	of costs in	Increase or
				principal	principal	decrease in
				operating	operating	gross profit
				businesses as	businesses as	as margin
	Revenue from	of Costs		compared to	compared to	compared to
	principal	principal		corresponding	corresponding	corresponding
	operating	operating	Gross profit	period last	period last	period last
Item	businesses	businesses	margin (%)	(%) year	(%) year	(%) year
industry By
Home appliances
manufacturing
industry	2,218,692.55	1,709,203.40	22.96	27.85	26.02	1.11
product By
Refrigerators	1,010,598.17	771,931.61	23.62	19.44	19.34	0.07
-Air conditioners	923,376.32	717,207.82	22.33	38.54	34.89	2.11
Others	284,718.05	220,063.97	22.71	27.82	23.81	2.51
Total	2,218,692.55	1,709,203.40	22.96	27.85	26.02	1.11
region By
Mainland	1,562,370.14	1,124,431.00	28.03	35.45	34.71	0.40
Overseas	656,322.40	584,772.40	10.90	12.79	12.12	0.53
Total	2,218,692.55	1,709,203.40	22.96	27.85	26.02	1.11

Analysis and Discussion Management

position liabilities and assets of Analysis) V(

items asset in changes Significant 1.

						Unit ten RMB : thousand
	31 2013 December	Percentage assets total to	31	2012 December Percentage assets total to	Increase decrease or weight in
Item	Amount	) %(	Amount	(%)	( %	Explanation) significant of changes
at Cash hand on and bank	47,378.72	3.96	51,606.55	5.61	( 1.65	significant No) change
assets Financial trading for held	6,711.50	0.56	1,067.83	0.12		Mainly 0.44 increase to due exchange the in for rate forward undue at as contracts the of end the Period Reporting
receivable Notes	216,080.17	18.06	155,876.62	16.94		Mainly 1.12 increase to due as receivables in the of end the at Period Reporting same the at and in decrease time receivable notes endorsed because Company the of of promotion s' electronic payment bill
Accounts receivable	164,477.18	13.75	145,588.22	15.82	( 2.07	significant No) change
receivables Other	54,633.75	4.57	34,272.22	3.73		Mainly 0.84 increase to due subsidies in as receivable the of end the at Period Reporting
Inventories	249,635.99	20.86	173,844.11	18.90		Mainly 1.96 increase to due planned in reserve products of of end the at as the Period Reporting
Investment properties	3,394.63	0.28	3,644.66	0.40	( 0.12	significant No) change
equity term-Long investments	99,750.07	8.34	75,192.57	8.17	0.17	due Mainly increase larger to net the in profits Hisense of joint a ,Hitachi the in ,venture as period current compared period last the to
assets Fixed	236,850.07	19.80	190,983.24	20.76	( 0.96	significant No) change
Construction progress in	25,397.76	2.12	6,834.43	0.74		Mainly 1.38 increase to due by investment in Shandong Refrigerator subsidiary a ,
Deferred assets tax profit	3,661.69	0.31	729.47	0.08		Mainly 0.23 in increase to due subsidiaries the which deferred satisfy tax profit provision assets respective the as

at as profits making were subsidiaries Period Reporting the of end the

Analysis and Discussion Management

items liability in changes Significant 2.

						Unit ten RMB : thousand
	2013			2012
		to Percentage assets total		to Percentage assets total	or Increase in decrease
Item	Amount	) %(	Amount	(%)	% (weight	Explanation) significant of changes
Short borrowings term-	19,168.15	1.60	3,030.95	0.33		Mainly 1.27 increase to due factoring in accounts receivable of end the at as the Period Reporting
payable Accounts	348,051.04	29.09	233,542.59	25.38		Mainly 3.71 increase to due planned in reserve products of of end the at as the Period Reporting
payable Taxes	( 15,676.65 )	( (1.31 )	4,899.48 )	( 0.53 )	(	Mainly) 0.78 increase to due input the in tax added-value

value fair at measured liabilities and Assets) VI(

					Unit ten RMB : thousand
Items	at Amount beginning the period the of	loss or Gain change from value fair in during period the	Accumulated in changes value fair accounted equity in	Impairment provided the during period	Amount purchased the during period	sold Amount the during period	at Amount of end the period the
Financial assets
Financial 1. assets measured value fair at
changes where value fair in accounted are
for loss or gain as period the of
excluding( derivative financial (assets	—	—	—	—	—	—	—
Derivative 2. assets financial	1,067.83	5,643.67	5,643.67	—	—	—	6,711.50
Financial 3. assets available sale for	—	—	—	—	—	—	—
of Subtotal assets financial	1,067.83	5,643.67	5,643.67	—	—	—	6,711.50
estate Real investment for	—	—	—	—	—	—	—
Productive biological assets	—	—	—	—	—	—	—
Others	—	—	—	—	—	—	—
Total	1,067.83	5,643.67	5,643.67	—	—	—	6,711.50
Financial liabilities	(16.42)	15.96	15.96	—	—	—	(0.46)

analysis competitiveness Core) VII(

advantages Technological 1.

core its build to core the as" friendliness environmental and green "and" technology inverter by savingenergy "on centers and" orientation technology "of philosophy operating its to adheres Company The notch-top has Company The .products and technologies in innovations continual through competitiveness Research Key Provincial Guangdong and ,laboratory recognized-State ,station research scientific doctoralpost enterprise ,center technology enterprise level-State including institutions development and research team development and research leading-industry an and ,Science Engineering of Center Development and directed-self its enhance to committed always is Company The .personnels technical of thousands with in ,products its of intelligentization of level and performance the enhance to strives ,capacity innovation strong provide and competitiveness market' products its and competitiveness core its improve to order .advancement industrial s'Company the for support technical

advantages Brand 2.

namely ,Company the of products conditioner-air and refrigerator the in used names brand three The and reputation brand good with Marks known-Well Chinese are ,"Kelon "and" Ronshen ","Hisense" first ranked had conditioners-air invertor" Hisense "of share market the ,brands these Among .base market first ranked had refrigerators" Ronshen "of share market the while ,years consecutive thirteen for China in .value brand core s'Company the reflects" quality high and technology High ".years eleven for China in to continues and ,internationalization of progress the accelerates gradually Company the ,time same the At .brands own its of internationalization the promote

interest equity has Company the which in companies and subsidiaries Major) VIII(

of Name company	type Company	Industry	product Major service or	Registered capital	Total assets ten RMB( (thousand	assets Net ten RMB( (thousand	Operating revenue ten RMB( (thousand	Operating profit ten RMB( (thousand	profits Net ten RMB( (thousand
Hitachi Hisense	in company A the which has Company interest equity	appliances Home industry	Production sale and commercial of conditioners-air	million \$46US	.98 233,277	.44 136,738	.04 354,070	.53 71,342	.59 60,821

OUTLOOK .iv

macroeconomy domestic the of adjustments structural continual as such factors unfavorable 2014, into ahead Looking general and ,cost labour of increase continued ,rates exchange of fluctuation intensified ,momentum growth weak amidst the of operation the on pressure increasing exert will markets emerging international in growth economic sluggish economic ,reform depth-in round-all s'nation the for deployment strategic of background the under ,However .Company China in measures other and system distribution income the of reform ,policies urbanization new ,upgrade and transition accelerate will intelligence household the of popularization the whereas ,consumption s'citizen the motivate further will economic ,hand other the On .industry goods white the within replacement product and upgrade consumption the ,trading export from demand the invigorate will States United the and Europe in countries developed in recovery .Company the of development the to opportunities advantageous bringing

service improving ,advantages product building "of strategies operating the uphold rigidly will Company the 2014, In proactively to" efficiency and scale securing and efficiency system enhancing ,model marketing reforming ,quality technology as well as ,upgrades sector and industry of opportunities the on ride ,pressure operating the to respond through share market and performance ,scale its in increase steady achieve to order in innovations product and :following the of implementation

• product in improvements continue to" demand consumer the meeting "of objective the on focus to 1. ,saving energy towards technologies core the Spearheading .advantages product establish and competitiveness the enhance ,competitiveness core' products the of position leading the maintain to ,intelligentization and health .innovations technological continual through quality product of improvements strengthen ,sophistication product of development and research for input the increase ,products end-high developing of strategy the to adhere To .products end-high of marketing the up step and ,products end-high of portfolio the enrich ,products end-high
• enhancing of efforts the in direction the as complaint zero and goal ultimate the as" satisfaction customer "take to 2. promoter net (NPS introduce to; level service in improvements accelerating ,quality service and product the from process entire the for improvements achieve to system controlling NPS up set and management) score net the increase to order in services to sales ,logistics ,control quality ,manufacture ,design ,planning product service establish ,standards service the devise ,network service the enhance To .products the of score promoter information for adding-value realize ,information service for management circuit closed and platform network .processing information service of speed the expedite and
• swift the from opportunities the on capitalize To .capability sales the increase and model sales the reform to 3. ecommerce the of operation professional the enhancing through ecommerce of channel emerging the of growth the for driving continue to; channels ecommerce with exchange and cooperation the fortifying ,channels ,turnaround and capability marketing the enhance ,markets grade fourth and third the for channels of construction expand to; networks of number the increasing while productivity shop-single the increase of objective the with particular in ,customers new for exploration the boost and business sales direct commercial of scale the .customers international
• enhancement technique promoting continue To .measures enhancement efficiency of development continue to 4. informatization the commence ,efforts unitization and standardization product reinforce ,projects automation and system entire the enhance to and ,structure organization and processes the streamline ,system management .efficiency
• .flow capital accelerate to and management expenses and capital strict implement to 5.

Report Governance Corporate

,corporation a of development stable and healthy term-long the to assurance basic the is governance corporate Sound the of development healthy the maintain to measure necessary a is level governance the of enhancement continued whereas 'shareholders The .Association of Articles the amended further has Company the ,Period Reporting the During .company committee supervisory the and committees specialized various its and directors of board the of meetings ,meetings general ,laws the with accordance in balance and check effective maintained and other each with coordinated ,functions their performed .Company the of governance corporate of level the enhanced continuously which ,systems relevant the and regulations

:structure governance Corporate .I

Meeting General' Shareholders) a(

in powers and functions its exercises meeting general' shareholders the ,Company the of authority highest the As and established has Company The .Company the of events significant on decisions make to laws the with accordance the ,announcements of publication the through shareholders its with channels communication different maintained .facsimile and telephone ,mail-e by as well as ,website s'Company

amend to passed and considered was resolution special a 2013, June 26 on held 2012 of meeting general annual the At functions the to revision the to related mainly which ,Company the of Association of Articles the of provisions certain of powers and functions the ,Board the of powers and functions the ,meeting general' shareholders the of powers and the of responsibilities the and Committee Audit the of responsibilities the ,Directors executive-non independent the the by published circular the and announcement the to refer please ,details For .Committee Appraisal and Remuneration .(hk.com.hkex.www://http (Exchange Stock Kong Hong the of website the on 2013 May 7 on Company

any in demanded be may poll a ,Company the of Association of Articles the of 8.27 Article with accordance In :by Company the of meeting general' shareholders

• or; meeting the of chairman the) a(
• or; proxies their or rights voting with shareholders two least at) b(
• of more or 10% ,aggregate in or individually ,representing) proxies their including) (s(shareholder more or one) c( .meeting general the at rights voting the carrying shares all

of beginning the at shareholders the to poll a of procedures detailed present will meeting general the of chairman The The .poll by voting to relating shareholders the of questions any answer then and ,meeting general' shareholders the Listing the of) 5(13.39 Rule under prescribed manner the in meeting general the after announced be will results voting .Rules

the by held been have") EGM ("Meeting General Extraordinary one and") AGM ("Meeting General Annual one 2013, In 53.53% and 48.39% represented EGM the and AGM the attending shareholders the by held shareholding The .Company are meetings general the attending Directors of records attendance The .respectively Company the of shares issued all of :table following the in out set

	The attendance the of general meetings the by Directors
Name	Number of meetings which be should attended for year the	Number of attendance in person	Number of attendance proxy by	Attendance for rate year the
Tang .Mr Guo Ye	2	1	0	50%
Ren .Mr Ren Li (1 Note (	2	2	0	100%
Yu .Ms Min Shu	2	0	0	—
Mr Lan Lin .	2	0	0	—
Xiao .Mr Lin Jian	2	0	0	—
Gan .Mr He Yong (2 Note (	2	0	0	—
Wang .Mr Yu Xin	2	2	0	100%
Wang .Mr Guo Ai	2	2	0	100%
Xu .Mr Yi Xiang	2	2	0	100%

:Notes

• ;2014 March 27 from effect with Director a be to ceased Ren Li Ren .Mr 1.
• ;2014 March 27 from effect with Director a be to ceased He Yong Gan .Mr 2.
• the of commencement the before writing in leave for applied have person in meetings general the attend to unable Directors All 3. .meetings general

Shareholders of Rights

class or meeting general extraordinary' shareholders of convening the requisition to Shareholders for Procedures meeting

shall meeting class a or meeting general extraordinary' shareholders a of convening the request who Shareholders :procedures following the with comply

the at vote to right the carrying shares the of more or 10% aggregate in holding shareholders more or) 2 (two) 1( Board the requiring counterparts more or) 1 (one in requisitions written the sign shall held be to sought meeting the of object the stating and thereof meeting class a or meeting general extraordinary' shareholders a convene to Ronggang .8No at China in office registered s'Company the at deposited be shall requisition written The .meeting Kong Hong in business of place s'Company the or PRC ,Province Guangdong ,Foshan ,Shunde ,Ronggui ,Road shall Board The .Kong Hong ,West Road Connaught .148No ,Centre Commercial Singga 3101-3105, Room at thereof meeting class or meeting general extraordinary' shareholders the convene to possible as soon as proceed of as calculated be shall above to referred held shares of number The .requisition written such of receipt the after .requisitions written the of date the

Report Governance Corporate

written the of receipt the after days) 30 (thirty within meeting a such of notice a issue to fails Board the if) 2( the to possible as similar as manner a in meeting a such convene themselves may requisitionists the ,requisitions receipt the after months) 4 (four within Board the by convened are meetings' shareholders the which in manner s'Board the of reason by requisitionists the by incurred expenses Reasonable .Board the by requisitions such of be shall themselves by meeting a of convening and calling the and requisitioned as meeting a convene to failure .Company the by borne

shareholders by made be may enquiries which by Procedures

of minutes and shareholders of register ,Association of Articles the as such information for requesting Shareholder Company the to documentation written provide should information relevant inspect or meetings general' shareholders s'shareholder the of verification Upon .holds she/he that Company the of shares of number and type the evidence to reasonable of receipt upon days 7 within request s'shareholder the per as copy the provide will Company the ,identity ,mail ,phone as such methods various by suggestions or enquiries make also can shareholders the ,addition In .charges is ,below out set are details contact whose ,Company the of Department Securities The .platform internet and visit site .shareholders with communication day-to-day the for responsible

Limited Company Holdings Electrical Kelon Hisense ,Department Securities The ,Street Ronggui ,Road Ronggang 8 .No ,Province Guangdong ,City Foshan ,District Shunde China of Republic s'People The 528303 :code Postal 86-757-28361055 :number Fax com.hisense@kelonsec :address mail-E

arranges also Company the and ,Company the to suggestions and enquiries make to channels smooth have Shareholders .timely enquiries relevant the to respond to person desginated

the of content the about enquire to entitled are shareholders ,meeting general a in resolution each on voting For as identity her/his introduce first should shareholder Speaking .thereof respect in recommendation make and resolution staff specific appoint or person in shall meeting the of chairman the whereas .,etc shareholdings her/his and shareholder .recommendation or enquiry such for explanation give or to respond to

meeting general' shareholders at proposals forward putting for Procedures

to entitled be shall shares s'Company the of more or 3% ,jointly or individually ,)s(hold who) s(shareholder Any 'shareholders the of date the to prior days) 16 (sixteen motions additional convener the to writing in submit and propose to period prescribed the within meeting general the of notice supplemental a issue shall convener The .meeting general .(s(motion additional the of contents the announce

available made procedures the to refer please ,Director a as election for person a proposing for procedures the regard As .com.kelon.www://http at Company the of website the on

Directors of Board The) b(

make and select will Committee Nomination The .Board the under established been has Committee Nomination The will same the and procedures and criteria selection the and Directors of positions the for candidates the on suggestions general' shareholders the at elected be will Directors and ,approval and consideration for Board the to submitted be Company the of meeting general annual the at established and elected was Board the of session eighth The .meetings executive the being ,Directors nine comprises Board The .years 3 of office of term a with 2012 June 26 on held .Mr and Lin Jian Xiao .Mr ,Lan Lin .Mr ,Min Shu Yu .Ms ,Ren Li Ren .Mr ,)Chairman (Guo Ye Tang .Mr Directors .Guo Ai Wang .Mr and Yu Xin Wang .Mr ,Yi Xiang Xu .Mr Directors executive-non independent the and ,He Yong Gan

Policy Diversity Board

a having of benefits the embraces and recognizes Company The .policy diversity board a adopted has Board The ,development balanced and sustainable its achieve to order In .performance its of quality the enhance to board diverse to limited not but including factors of number a of consideration through diversity board achieve to aims Company the and ,services of length and knowledge ,skills ,experience professional ,background educational and cultural ,age ,gender on based be will decision final the and aspects diverse of range a on based be will candidates director of selection the .Board the to bring may candidate that contribution and of merits

monitor will and perspectives diversified under Board the of composition the review will Committee Nomination The .effectiveness continual its ensure to policy diversity board the of implementation the

and science as such fields various in experience extensive with backgrounds different have Board the of Members on out set are Directors the of roles and biographies The .accounting and finance and management corporate ,technology .report annual this of 32 to 31 pages

the at work its reporting and meetings general' shareholders convening :include Board the of duties primary The the at shareholders the by delegated as powers making-decision its exercising and ,meetings general' shareholders the of establishment ,Company the of plans development strategic the as such matters to respect with meetings general human and transactions material ,assets material of disposal ,controls financial and investment ,structure management and ,plans business annual and strategy overall s'Company the formulating for responsible is Board The .resources the ,addition In .monitored and conducted ,approved ,planned properly is operation and production its that ensuring and supervision the and Management Operational the of members the of appointment the for responsible also is Board .performance their of evaluation

such that ensure to period fiscal each for accounts the of preparation the overseeing for responsible also is Board The that during performance flow cash and results ,operation business s'Company the reflect fairly and truly accounts the to information sufficient and explanation proper provides Company the of Management Operational The .period to submitted information other and information financial the of assessment informed an make to it enable to as so Board :Directors the 2013, December 31 ended year the for accounts the preparing In .approval for it

• ;policies accounting appropriate selected—
• Business for Standards Accounting China the in out set as standards applicable all of adoption the approved and; Enterprises
• .basis concern going a on accounts the prepared and ,estimates and judgments reasonable and prudent made—

and Board the by made decisions the implementing for responsible is Company the of Management Operational The by delegated scope the within operation business s'Company the to relating matters on decisions own its making and organizing ,operation and production s'Company the of management the overseeing :include which ,Board the of establishment the for proposal the preparing ,plans investment and operation annual s'Company the implementing the up setting and system management basic s'Company the formulating ,structure control internal s'Company the Board the to reports Management Operational the ,Board the by requested as ,Meanwhile .regulations basic s'Company loss and profit s'Company the and capital of use the ,contracts major s'Company the of performance and conclusion the .complete and true is information such that ensures and conditions

and laws relevant the and Rules Listing the with accordance in systems relevant the formulated has Company The a in authorities regulatory the to disclosures making including ,obligations their of Directors the remind to regulations Director Each .information personal their in changes and interests of conflicts potential ,interests their of manner timely assesses Board The .affairs s'Company the to time and efforts sufficient devote to able is she or he that undertakes also Board the in rate attendance their on based duties their out carrying in Directors the of performance the evaluates and .work dayto-day the in them by forward put suggestions and opinions the as well as meetings general' shareholders and meetings

operating s'Company the discuss to meetings 12 held has Company the of Board the of session eighth the 2013, In attended Directors The .performance financial and operating as well as proposals investment ,strategies overall ,results :table following the in out set are records attendance their and ,proxies their by or person in meetings the

	The attendance the of meetings of eighth the session of Board the
Name	Number of meetings which be should attended for year the	Number of attendance person in	Number of attendance proxy by	Attendance for rate year the
Tang .Mr Guo Ye	12	12	0	100%
Ren .Mr Ren Li (1 Note (	12	12	0	100%
Yu .Ms Min Shu	12	12	0	100%
Mr Lan Lin .	12	12	0	100%
Xiao .Mr Lin Jian	12	12	0	100%
Gan .Mr He Yong (2 Note (	12	12	0	100%
Xu .Mr Yi Xiang	12	12	0	100%
Wang .Mr Yu Xin	12	12	0	100%
Wang .Mr Guo Ai	12	12	0	100%

:Notes

1. March 27 from effect with Director a be to ceased Ren Li Ren .Mr 1.

2. March 27 from effect with Director a be to ceased He Yong Gan .Mr 2.

to prior notice' days 14 given be should Directors all ,Company the of Association of Articles the by stipulated As in given be should notice' days 3 ,meeting Board extraordinary an For .meeting Board regular a of commencement the the in matters include to opportunity an given are Directors all that ensure to place in also are Arrangements .advance meeting Board regular a of details providing for responsible is Board the to secretary The .meetings Board for agenda 3 than later not) Board the of committees specialized the of each of meeting the to relation in information including( considered be to matters the of apprised are Directors all ensure to meeting the of commencement the to prior days at telecommunication of means by held are which meetings Board extraordinary for As .advance in meeting the in to simultaneously provided be would meeting the to relevant information ,management s'Company the of request the The .matters the consider to Directors the to given be would time sufficient and facsimile and email via Directors all timely a in action appropriate take and Directors the by raised questions any to respond would Board the to secretary the with compliance in are Board the of meetings the of procedures the that ensure to Directors the assist to manner and Association of Articles the ,China of Republic s'People the of Law Company the as such ,regulations applicable ,responsibilities and duties their discharge to Directors enable to available are resources Sufficient .Rules Listing the meeting each and meeting Board each of Minutes .advice professional independent seeking in fee for budget including kept be and ,minutes the taking person the and Directors attending the by signed be will Board the of committees the of their upon time to time from inspection' Directors for available are minutes the which during ,years 10 of term a for .request

compliant a of establishment in management the of supervision ,governance corporate for responsible is Board The regulations and laws other and) below defined as (Code CG the with compliance ,system and structure organization the During .Code CG the in .3.1D provision code in out set functions other and management of course ordinary the in and policies s'Company the of compliance reviewed have committees specialized and Board the ,Period Reporting senior and Directors the of development professional continuous and training the ,governance corporate on practices .control internal of system s'Company the and management

Directors Executive-Non Independent

total the of third-one for accounting ,Directors executive-non independent three comprises Company the of Board The and) 1(3.10 Rules with complied have Company the of Directors executive-non independent The .Directors of number of any with connected not are and of independent are them of all and Rules Listing the of 3.13 Rule and A3.10 Rule ,)2( of confirmation a received has Company The .Company the of) Rules Listing the in defined as (persons connected the Wang .Mr ,Yi Xiang Xu .Mr of office of term The .Directors executive-non independent the of each from independence 2015. June 25 to 2012 June 26 from are Yu Xin Wang .Mr and Guo Ai

Board the of meetings the attended Company the of Directors executive-non independent the ,Directors executive-Non Independent of System Working the of requirements the and regulations ,laws relevant the with compliance In their brought and manner conscientious and enthusiastic ,responsible ,meticulous a in committees specialized the and professional contributing ,duties their of performance independent the in play full a to expertise and professionalism .making decision for discussion under issues significant for judgment independent and advice

Directors of Board the of committees Specialized

the ,Committee Appraisal and Remuneration the ,namely ,committees specialized four established has Board The working own its devised has committee Each .Committee Audit the and Committee Strategic the ,Committee Nomination .Board the by approved been have which ,performance of procedures the and reference of terms its define to rules

Committee Appraisal and Remuneration

written specific with Committee Appraisal and Remuneration the established has Board the of session eighth The Committee Appraisal and Remuneration the ,hereof date the to up and Period Reporting the During .reference of terms ,Directors executive-non independent the and ,Min Shu Yu .Ms and Lan Lin .Mr ,namely ,Directors the of consisted the of chairman the as acts Yi Xiang Xu .Mr .Yu Xin Wang .Mr and Yi Xiang Xu .Mr ,Guo Ai Wang .Mr ,namely .committee

:are Committee Appraisal and Remuneration the of authority and duties major The

• make and appraisal the out carry to and management senior and Directors the of standard appraisal the analyze to) A( ;Company the of conditions actual the on based recommendations
• senior and' Directors all for structure and policy s'Company the on Board the to recommendations make to) B( developing for procedure transparent and formal a of establishment the on and remuneration s'management ;policy remuneration
• resign and responsibilities accept management senior or Directors where situations in recommendations make to) C( ;duties their perform to failure and defaults their for dismissed be to proposed are or
• or loss any for management senior and Directors executive to payable compensation approve and review to) D( fair otherwise is and terms contractual with consistent is it that ensure to appointment or office of termination ;excessive not and
• misconduct for Directors of removal or dismissal to relating arrangements compensation approve and review to) E( ;appropriate and reasonable otherwise are and terms contractual with consistent are they that ensure to
• ;Directors executive-non independent of remuneration the for Board the to recommendations make to) F(
• goals corporate s'Board the to reference with proposals remuneration s'management the approve and review to) G( ;objectives and

• and Directors executive individual of packages remuneration the on Board the to recommendations make to) H( including ,payments compensation and rights pension ,kind in benefits include should This .management senior ;appointment or office their of termination or loss for payable compensation any

• employment and responsibilities and commitment time ,companies comparable by paid salaries consider to) I( ;group the in elsewhere conditions

• and; remuneration own his deciding in involved is associates his of any or Director no that ensure to) J(
• .Board the by authorized matters other and rules regulatory applicable under provided duties other) K(

any or Director No .necessary when advice professional seek may Committee Appraisal and Remuneration The the of purpose main The .remuneration own her or his deciding in involved be shall management senior the of member and Directors retain and attract to is Committee Appraisal and Remuneration the by formulated policies remuneration successful its in Company the help who and ,duties their discharge diligently and faithfully who management senior policies remuneration the of details For .Company the to important therefore are policies remuneration the and operation .report annual this of 51 page to refer please ,Company the of

Reporting the during meeting one held Company the of Board the under Committee Appraisal and Remuneration The :below out set is Committee Appraisal and Remuneration the of members the of record attendance the and ,Period

	The	attendance the of meeting the of Remuneration and Appraisal Committee the under Board
Name	Number of meeting which be should attended for year the	Number of attendance in person	Number of attendance proxy by	Attendance for rate year the
Yu .Ms Min Shu	1	1	0	100%
Mr Lan Lin .	1	1	0	100%
Wang .Mr Yu Xin	1	1	0	100%
Wang .Mr Guo Ai	1	1	0	100%
Xu .Mr Yi Xiang	1	1	0	100%

:approved and considered Committee Appraisal and Remuneration the ,Period Reporting the During

• annual 2012 the in management senior and supervisors ,Directors the of remuneration annual the of disclosure the 1. ;report
• ;Company the of management senior the of policy remuneration annual the of respect in resolution the 2.
• senior certain of remuneration annual basic the of confirmation or adjustment the of respect in resolution the 3. and; Company the of management
• period exercise first the during options share exercisable with participants the of verification the on opinion the 4. .Company the of scheme incentive option share first the of

supervisors ,Directors the of remuneration the that confirmed Committee Appraisal and Remuneration the of Members the by up set system appraisal remuneration the with line in are Period Reporting the during management senior and ,Directors the of remuneration the of Details .implemented strictly been have policies remuneration the and Company pages on out set are 2013 December 31 ended year the for Company the of management senior the and supervisors the .report annual this of 51 to 50

Committee Nomination

written specific with Committee Nomination the established has Company the of Board the of session eighth The comprised Committee Nomination the ,hereof date the to up and Period Reporting the During .reference of terms and ,Guo Ai Wang .Mr and Yu Xin Wang .Mr ,Yi Xiang Xu .Mr ,namely ,Directors executive-non independent three acts Yi Xiang Xu .Mr .)2014 March 26 on ended term whose (Ren Li Ren .Mr and Guo Ye Tang .Mr ,namely ,Directors .committee the of chairman the as

:are Committee Nomination the of authority and duties major The

• senior and Director of positions the for candidates of selection for process and standard the analyze to) A( ;Board the to recommendations make and management
• ;management senior and Directors become to qualified individuals identify extensively to) B(
• the to recommendations make and management senior and Director of positions the for candidate the examine to) C( ;Board
• at Board the of) experience and knowledge ,skills the including (composition and size ,structure the review to) D( s'Company the complement to Board the to changes proposed any on recommendations make and annually least ;strategies corporate
• ;Directors executive-non independent the of independence the assess to) E(
• succession and Directors of reappointment or appointment the on Board the to recommendations make to) F( and; executive chief the and chairman the particular in ,Directors for planning
• .Board the by authorized matters other) G(

and ,Directors executive-non independent three including ,Directors five comprises Committee Nomination The the of more or half-one ,Board the of Chairman the by nominated are Committee Nomination the of members the Nomination The .Board the by elected are and ,Directors of more or third-one or Directors executive-non independent for responsible Director executive-non independent an be should who) convener (chairman one have shall Committee shall and ,members committee the among elected be shall convener The .committee the of work the over presiding consistent is Committee Nomination the of member each of office of term The .approval for Board the to reported be a be to ceases committee the of member any if ,office of term the During .Board the in serves she or he term the with by filled be should vacancy the and ,accordingly committee the of member a as disqualified be shall she or he ,Director Company the of department resources human The .requirements the with accordance in Board the by elected person the suitable of nomination and selection as such work daily its out carrying in Committee Nomination the assist will .candidates

the and ,Period Reporting the during meeting one held Company the of Board the of Committee Nomination The :below out set is Committee Nomination the of members the of record attendance

		The attendance the of meeting of the Nomination Committee the under Board
Name	Number of meeting which be should attended for year the	Number of attendance in person	Number of attendance proxy by	Attendance for Rate year the
Tang .Mr Guo Ye	1	1	0	100%
Ren .Mr Ren Li (1 Note (	1	1	0	100%
Wang .Mr Yu Xin	1	1	0	100%
Wang .Mr Guo Ai	1	1	0	100%
Xu .Mr Yi Xiang	1	1	0	100%

the of respect in resolution the approved and considered Committee Nomination the ,Period Reporting the During .Company the of president-vice the as Ye Tian .Mr of nomination

within management senior or Directors of candidates for searches extensive conducts Committee Nomination The senior or Directors new for requirements s'Company the considering after .etc ,market open the in and Company the the convene will Committee Nomination the ,candidates the from nomination to consent the With .management the and Association of Articles the ,regulations and laws relevant with accordance in meeting Committee Nomination qualifications the examine ,situation actual s'Company the of view in Committee Nomination for Reference of Terms a form and management senior or Directors of position the for requirements the to according nominees initial the of will Committee Nomination The .consideration its for Board the to submitted and recorded be would which resolution two information relevant with together directorship for candidates the on recommendation its with Board the provide shall Committee Nomination the ,management senior of nomination the of respect In .nomination the before months the before month one materials relevant with together candidates the on recommendation its with Board the provide procedures nomination the implemented strictly Committee Nomination the ,Period Reporting the During .nomination .enacted policy nomination the with accordance in criteria recommendation and

Committee Strategic

of terms written specific with Committee Strategic the established has Company the of Board the of session eighth The the of session eighth the of Committee Strategic the ,hereof date the to up and Period Reporting the During .reference Lin .Mr ,Min Shu Yu .Ms ,)2014 March 26 on ended term whose (Ren Li Ren .Mr ,Guo Ye Tang .Mr comprised Board .committee the of chairman the is Guo Ye Tang .Mr .Lin Jian Xiao .Mr and Lan

for responsible primarily ,Board the under organ working specialized a is Board the of Committee Strategic The significant on making-decision the and strategies development term-long the on recommendations making and studying .Company the of investments

more or half-one ,Board the of Chairman the by nominated are who ,Directors five comprises Committee Strategic The .Board the by elected are and ,Directors the all of more or third-one or Directors executive-non independent the of The .Company the of Board the of Chairman the be shall who ,)convener (chairman one have shall committee The the with office of term her or his with consistent be shall Committee Strategic the of member each of office of term any if ,office of term the During .retirement her or his upon elected-re be can committee the of members and ,Board the of member a as disqualified be shall she or he ,Company the of Director a be to ceases committee the of member the with accordance in committee the by elected person the by filled be should vacancy the and ,accordingly committee .requirements

Committee Audit

corporate best the achieve To .system control internal s'Company the for responsibility ultimate takes Board The .systems relevant the of efficiency the review to Committee Audit the up set has Company the ,practices governance is and ,reference of terms written specific with Board the under organ working specialized a is Committee Audit The .Company the of work audit external and internal the of inspection and supervision ,communication the for responsible .approval for Board the to submitted be shall proposals its and Board the to reports Committee Audit The

:are Committee Audit the of authority and duties major The

• and reappointment ,appointment the on Board the to recommendations making for responsible primarily be to) A( external the of engagement of terms and remuneration the approve to and ,body auditing external the of removal ;dismissal or resignation its of questions any and ,body auditing
• of effectiveness the and body auditing external the of objectivity and independence the monitor and review to) B( auditing the with discuss should Committee Audit The .standards applicable with accordance in process audit the ;commences audit the before obligations reporting and audit the of scope and nature the body

Report Governance Corporate

• this For .services audit-non supply to body auditing external an engaging on policy implement and develop to) C( management or ownership ,control common under is that entity any includes" body auditing external ",purpose information relevant all knowing party third informed and reasonable a that entity any or body auditing the with should Committee Audit The .internationally or nationally firm audit the of part be to conclude reasonably would is improvement or action where matters any on recommendations making and identifying ,Board the to report ;needed
• and report interim ,accounts and report annual and statements financial s'Company the of integrity the monitor to) D( these reviewing In .them in contained judgments reporting financial significant review to and ,reports quarterly :on particularly focus should committee the ,Board the to submission before reports
• ;practices and policies accounting in changes any 1.
• ;areas judgmental major 2.
• ;audit the from resulting adjustments significant 3.
• ;qualifications any and assumptions concern going the 4.
• and; standards accounting with compliance 5.
• ;reporting financial to relation in requirements legal and Rules Listing the with compliance 6.
• :above) D (item regarding) E(
• must committee the and management senior and Board the with liaise should committee the of members 1. and; body auditing s'Company the with ,year a twice least at ,meet
• in reflected ,be to need may or ,are that items unusual or significant any consider should committee the 2. the by raised been have that matters any to consideration due give should it and ,accounts and reports the or officer compliance ,function reporting financial and accounting the for responsible staff s'Company ;body auditing
• ;systems management risk and control internal ,controls financial s'Company the review and examine to) F(
• have to duty its performed has management that ensure to management with system control internal the discuss to) G( qualifications staff ,resources of adequacy the include should discussion This .system control internal effective an ;function reporting financial and accounting s'Company the of budget and programmes training ,experience and
• own its on or Board the by delegated as matters control internal on findings investigation major consider to) H( ;findings these to response s'management and initiative
• ,bodies auditing external and internal the between ordination-co ensure to ,exists function audit internal an where) I( the within standing appropriate has and resourced adequately is function audit internal the that ensure to and ;effectiveness its monitor and review ,examine to and ,Company
• ;practices and policies accounting and financial s'Group the review and examine to) J(
• any ,body auditing external the by management the to provided work audit on letter explanatory the review to) K( or accounts financial ,records accounting the about management to body auditing the by raised queries material ;response s'management and control of systems
• audit on letter explanatory the in raised issues the to response timely a provide will Board the that ensure to) L( ;body auditing external the by management the to provided work

• ;reference of terms these in matters the on Board the to report to) M(

• concerns raise to ,confidence in ,use can Company the of employees which arrangements review and audit to) N( proper that ensure to and matters other or control internal ,reporting financial in improprieties possible about up-follow appropriate for and matters these of investigation independent and fair for place in are arrangements ;action

• ;body auditing external the with relationship s'Company the overseeing for body representative key the as act to) O(
• complaints and enquiries the handle openly and to attention pay to mechanism blowing-whistle a establish to) P( ,truthfulness the on media social and Company the of investors and suppliers ,customers ,staff the by made ;information financial the of completeness and accuracy
• and mechanism governance corporate of modification and establishment the regarding recommendation make to) Q( of management senior by Board the of resolutions of implementation the over supervision effective provide to and; Company the
• .authorize may Board the as matters other such consider to) R(

Xu .Mr of consisted Committee Audit the ,hereof date the to up and Period Reporting the During .Directors executivenon independent are Company the of Board the of session eighth the under Committee Audit the of members All .committee the of chairman the is Guo Ai Wang .Mr .Guo Ai Wang .Mr and Yu Xin Wang .Mr ,Yi Xiang

attendance the and ,Period Reporting the during meetings three held Company the of Board the of Committee Audit The meetings such at approved and considered matters All .below out set is Committee Audit the of members the of record all by signed and reviewed being after record for filed and requirements relevant the with accordance in recorded were .Committee Audit the of members

	The attendance	the of meetings of Audit the Committee under Board the
Name Wang .Mr Yu Xin Wang .Mr Guo Ai Xu .Mr Yi Xiang	Number of meetings which be should attended for year the	Number of attendance person in	Number of attendance proxy by	Attendance for rate year the
	3	3	0	100%
	3	3	0	100%
	3	3	0	100%

:tasks major following the accomplished Committee Audit the 2013, In

• ;Company the of reports financial quarterly and interim ,annual the reviewed having 1.
• the and 2012 of year the for control internal of assessment-self on report the approved and considered having 2. ;2012 of year the for body auditing the by conducted work audit the for report final
• Public Certified China Horwath Crowe of reappointment the on resolution the approved and considered having 3. ;2013 of year the for Company the of auditor the as) LLP (Accountants
• in were transactions connected the that ensure to Company the of transactions connected the reviewed having 4. medium the of protection sufficient with transparency and impartiality ,fairness of principles the with compliance ;interests' shareholders minority and
• and; system control internal s'company the of effectiveness the reviewed having 5.
• the of management senior the reminded and Company the of events significant on recommendations made having 6. .risks relevant the of Company

Committee Supervisory) c(

supervisory its performs independently It .laws PRC the with accordance in established was Committee Supervisory The reviews also It .infringements from staff its and Company the ,shareholders of interests legal the protect to duties the of Association of Articles the of requirements relevant the with accordance in positions financial s'Company the .Company the of management senior the and Directors the of duties of discharge the oversees and ,Company

namely ,supervisors representative shareholder two of composed is Committee Supervisory the of session eighth The .Mr with ,Jun Jian Zhang .Mr ,supervisor representative employee one and Yan Jiang Liu .Ms and Cun Qing Guo .Mr received Company the 2013, November 21 On .Committee Supervisory the of chairman the as acting Cun Qing Guo their tendered have Liu .Ms and Guo .Mr that Given .Yan Jiang Liu .Ms and Cun Qing Guo .Mr from resignation the Committee Supervisory the of operation normal the ensure to ,supervisors representative shareholder as resignation as elected be to shareholders by nominated been have Ling Yu Gao .Ms and Shun Zhen Liu .Mr ,Company the of the and Company the of Committee Supervisory the of session eighth the of supervisors representative shareholder .Mr ,then Since 2014. January 10 on held meeting general extraordinary the in approved and considered was nomination formed ,Jun Jian Zhang .Mr ,supervisor representative employee the with together ,Ling Yu Gao .Ms and Shun Zhen Liu session eighth the of expiration the until office with ,Company the of Committee Supervisory the of session eighth the Supervisory the of chairman the as acting Shun Zhen Liu .Mr with ,)2015 June 25 .e.i (Committee Supervisory the of .Committee

.report annual this of 32 pages on out set are biographies' supervisors mentioned-above the of Details

Code CG the with Compliance .II

with complied has Company the ,Period Reporting the during ,Company the of information and knowledge best the To .Rules Listing the to 14 Appendix in out set as") Code CG ("Code Governance Corporate the in provisions code the

Directors the of Training

Company the of Board the to secretary the ,Directors the of management corporate of level the enhance to order In such delivers and ,institutions regulatory securities the by out set requirements regulatory latest the follows continuously .manner timely a in Company the of management senior and supervisors ,Directors the to information and requirements senior and supervisors ,Directors relevant the for programs training arranged also has Company the ,time same the At the (Company the by employed organization training the by conducted session training a includes which ,management same the in competition of respect in regulations and transactions connected includes session training the of content the by held sessions training specific and) information inside of respect in note to matters and of definition the ,industry in Directors the assist to ,Bureau Guangdong Commission Regulatory Securities China and Exchange Stock Shenzhen .development professional continuous in participating

each by attended training The .Directors the by attended training of records maintains Board the to secretary The :follows as tabulated is Period Reporting the during Director

of Type training
(Note(
b ,a
b ,a
b
b ,a
b ,a
b
b ,a
b ,a
b ,a

:Note

(s(session training or) s(seminar attending .a

President and Chairman

were who persons The .Board the by appointed are Company the of President the and Board the of Chairman The :follows as are Period Reporting the during Company the of President the and Chairman the as appointed

POSITION	Chairman	Former President	President
NAME	Tang .Mr Guo Ye	Ren .Mr Ren Li	Xiao .Mr Lin Jian
TERM OF OFFICE	June 26 to 2006 25 2015 June	June 27 to 2011 March 26 2014	March 27 to 2014 25 2015 June

Board the over presiding and convening ,meetings general the over presiding for responsible be shall Chairman The a in issues significant the all discuss and review to operation proper effective in is Board the that ensuring ,meetings duties his discharging as well as resolutions s'Board the of implementation the reviewing ,manner effective and timely and production the of management the of charge take shall President The .Company the of representative legal the as the and resolutions s'Board the of implementation the organizing for responsible is and ,Company the of operation delegation of scope the within issues other on decisions making and plans investment and operational annual s'Company .Board the by

the without Directors executive-non independent the with meeting a held Chairman the ,Period Reporting the During .Directors executive the of presence

Control Internal

Internal Enterprise for Norms Basic "the of requirements and provisions the to pursuant ,Period Reporting the During management and operation corporate of level the enhancing of objectives the with ,guidelines ancillary its and" Control and law with operation s'Company the of compliance the ensuring reasonably as well as ,ability prevention risk and ,information relevant and reports financial the of completeness and truthfulness the ,assets of safety the ,regulation sustainable for strategies of implementation the promoting and operation of efficacy and efficiency the optimizing method assessment and system control internal s'Company the account into taking and ,Company the by development the determined has Company the ,control internal of supervision specific and supervision daily of basis the on and ,strategies development ,structure organizational including ,emphasis require that control internal in assessment of scope ,management asset ,business procurement ,activities funding ,culture corporate ,responsibility social ,resources human comprehensive ,reporting financial ,outsourcing business ,business guarantee ,development and research ,business sales assessment-self out carried has and ,system information and transfer information internal ,management contract ,budget effectiveness the of respect in drawn were Conclusions 2013. in control internal s'Company the of effectiveness the on and businesses all for control internal established has Company the ,Period Reporting the during :control internal of the achieve to executed effectively been has control internal the and ,assessment of scope the in included matters .shortfalls significant without control internal s'Company the of objectives

the of course the During .year the during system control internal the of effectiveness the reviewed has Board The Company the for system control internal appropriate an established had Company the that considered Board the ,review ,addition In .system control internal the in defect significant any of aware not was and situations actual the on based the of effectiveness the on audit independent perform to Accountants Public Certified Ruihua engaged has Company the at as that view the of is auditor The .issued been has control internal on report audit an and control internal s'Company accordance in reporting financial to related control internal effective maintained has Company the 2013, December 31 .aspects material all in requirements relevant the and" Control Internal Enterprise for Norms Basic "with

Directors by Transactions Securities .III

as") Code Model ("Issuers Listed of Directors by Transactions Securities for Code Model the adopted has Company The specific making After .Directors the by transactions securities for code its as Rules Listing the to 10 Appendix in out set .office of term their during Code Model the with complied had they that confirmed all they ,Directors the to enquiries

Auditor .IV

Crowe reappoint to agreed Company the ,meeting general' shareholders the at approved and considered as 2013, In the and 2013, of year the for Company the of auditors the as) LLP (Accountants Public Certified China Horwath Public Certified China Horwath Crowe of name the 2013, July 1 On .remuneration their fix to authorized was Board remuneration a pay to agreed Company The ."Accountants Public Certified Ruihua "to changed was) LLP (Accountants financial for services audit of provision the for auditors the to 700,000RMB and 1,800,000RMB approximately of travel corresponding the bear and 2013 December 31 ended year the for respectively control internal and reporting .expenses

secretary Company .V

secretary company the as Fong Tak Wong .Ms of appointment the approved and examined Board the 2012, June 26 On s'Company the is Fong Tak Wong .Ms .matters compliance Rules Listing the with dealing in Company the assist to in ,Feng Xia .Mr ,Company the of Board the of secretary the with communicate and contact can She .personnel external .work day-to-day her

relevant of hours 15 than less no taken has Fong Tak Wong .Ms ,Rules Listing the of 3.29 Rule to According .Period Reporting the during training professional

Management Senior the of Members & Supervisors ,Directors of Profiles

:Directors

the ,manager general deputy the ,accountant chief the of positions the held successively has 51, aged ,Guo Ye Tang .Mr August From .")Electric Hisense) (".Ltd .,Co Electric Hisense (青島海信電器股份有限公司 of director and manager general Limited Company Hisense of president vice the and president the to assistant an as served he 2005, September to 2003 Conditioning-Air Hisense Qingdao of directors of board the of chairman and manager general the and ,")Group Hisense(" He 2006. June to 2005 September from Company the of president the and Electric Hisense of director a and Conditioning-Air Hisense of directors of board the of chairman the was Tang .Mr .")Conditioning-Air Hisense ("Limited Company and Conditioning-Air Hisense of directors of board the of chairman and Group Hisense of president vice the as acted has a and president vice the been has He 2010. April to 2006 June from Company the of directors of board the of chairman the of board the of chairman the and Conditioning-Air Hisense of directors of board the of chairman and Group Hisense of director 2010. April since Company the of directors

青島市電子儀錶工業總 of committee party the to secretary deputy the as served successively has 62, aged ,Min Shu Yu .Ms the and committee party the to secretary deputy the ,)Corporation Industrial Instrument Electronics Municipal Qingdao (公司 and directors of board the of chairwoman vice the ,Electric Hisense of manager general the ,Group Hisense of president vice since Electric Hisense of directors of board the of chairwoman the been has She .Group Hisense of officer executive chief the July since Group Hisense of president the and directors of board the of chairwoman vice the been has Yu .Ms 1999. December 2006. June since Company the of director a been has She 2001.

西門子諮詢公司 of department development software system power the of manager the as worked has 56, aged ,Lan Lin .Mr 動力系統 GE of engineer senior and manager project senior the ,)UK the in" Limited AMEC "as known currently ,Siemens( July Since 2006. June to 2002 September from Company the of president vice the as acted Lin .Mr .)Systems Power GE (公司 a and 2007 May since Electric Hisense of director a been has He .Group Hisense of president vice the as served has he 2006, 2006. June since Company the of director a been has He 2009. December since Group Hisense of director

head ,centre finance of head the ,centre operation of head deputy the as served successively has 46, aged ,Lin Jian Xiao .Mr from Group Hisense of department audit of head the was He .Group Hisense of president to assistant and department finance of head the 2014, January to 2008 January from Group Hisense of president-vice the been has He 2009. January to 2007 August Group Hisense of director a 2014, January to 2009 January from Group Hisense of centre management operation and finance of Conditioning-Air Hisense of director a been has He 2008. June since Electric Hisense of director a and 2000 January since Company the of president the been has He 2011. January since Company the of director a as served has He 2009. April since 2014. March since

of manager general vice the and manager general the to assistant the as successively served has 49, aged ,Ren Li Ren .Mr Hisense of manager general the .,Ltd .,Co Computer Hisense Qingdao of manager general the to assistant the ,Electric Hisense Hisense of manager general the .,Ltd .,Co Electrical) Nanjing (Hisense of manager general the .,Ltd .,Co Electrical) Beijing( .,Co Refrigerator) Guangdong (Ronshen Hisense of manager general vice the and .Ltd .,Co Refrigerator) Yangzhou (Ronshen 2011, June to 2009 June From .Company the of president the to assistant the as acted he 2009, June to 2006 June From ..Ltd He 2014. March to 2011 June from Company the of president the been has He .Company the of president vice the as acted he March to 2011 August from Company the of director a and 2011 August since Conditioning-Air Hisense of director a been has 2014.

quality central of head and department quality manufacturing of head the previously was 46, aged ,He Yong Gan .Mr of director quality and manager quality the and .,Ltd .,Co Appliance Electric Household Boxihua Anhui of department (Guangdong (Ronshen Hisense of manager general deputy the as acted He .Ltd .,Co Appliances Home) China (Electrolux to 2011 June from Company the of president vice the as served has and 2011, June to 2008 June from .Ltd .,Co Refrigerator 2014. March to 2012 January from Company the of director a as served has He 2014. March

from Law in .D .Ph a holds ,University Shandong of Management of School the of professor a 58, aged ,Yi Xiang Xu .Mr of Management of School the of Dean the was He .management business in supervisor .D .Ph a is He .University Shandong centre research governance corporate of head the currently is and 2012, December to 2004 January from University Shandong Shanghai the on listed (Limited Company speed-Hi Shandong of director independent an was He .University Shandong of an 2010, April since Limited Company speed-Hi Shandong of supervisor a 2010, April to 2003 April from) Exchange Stock independent an 2009, May to 2003 June from) Exchange Stock Shanghai the on listed (Electric Hisense of director independent 2006 December from) Exchange Stock Shanghai the on listed (.Ltd .,Co Wire Magnet Special TonglingJingda of director Stock Shenzhen the on listed (Company Incorporated Demian Shandong of director independent an and 2010, January to listed (.Ltd .,Co Biology Baolingbao of director independent an been has He 2011. December to 2010 April from) Exchange Longji Shandong of director independent an and 2013, December to 2007 October from) Exchange Stock Shenzhen the on executive-non independent an been has He 2008. March since) Exchange Stock Shenzhen the on listed (.Ltd .,Co Machinery 2012. June since Company the of director

Management Senior the of Members & Supervisors ,Directors of Profiles

天津財經(Economics & Finance of Institute Tianjin from accountancy in degree s'master a holds 49, aged ,Guo Ai Wang .Mr postdoctoral a is and ,)天津大學管理學院 (University Tianjin of Management of School the from degree doctoral a and)學院 the at professor associate an was He .)天津財經大學 (Economics & Finance of University Tianjin in accountancy in fellow at professor a was and 2000, and 1995 between) 山東經濟學院 (College Economics Shandong of Accountancy of Faculty professor a ,dean the currently is He 2011. and 2000 between College Economics Shandong of Accountancy of Faculty the a ,)山東財經大學 (Economics and Finance of University Shandong of Accountancy of School the of supervisor .D .Ph a and the and ,China of Society Accounting of member council a ,)中國資產評估協會(Society Appraisal China of member council 山(Province Shandong of Society Accounting of Committee Education Accounting of general-secretary the and chairman-vice listed) (萊蕪鋼鐵股份有限公司 (Ltd .,Co Steel Laiwu of director independent an was He .)東省會計學會會計教育專業委員會 Blower Zhangqiu Shandong of director independent an and 2012 February to 2008 June from) Exchange Stock Shanghai the on independent an and 2009 July since) Exchange Stock Shenzhen the on listed) (山東省章丘鼓風機股份有限公司(.Ltd .,Co of Exchange Stock The on listed) (中國玉米油股份有限公司 (Limited Company Oil Corn China of director executive-non Holdings Paper Chenming Shandong of director independent an been has He 2009. November since) Limited Kong Hong Kong Hong of Exchange Stock The and Exchange Stock Shenzhen the on listed) (山東晨鳴紙業集團股份有限公司 (Ltd .Co 山東鋼鐵股份 (Ltd Company Steel and Iron Shandong of director independent an been also has He 2010. April since) Limited director executive-non independent an as served has He 2012. April since) Exchange Stock Shanghai the on listed) (有限公司 2011. January since Company the of

in degree bachelor a with Economics and Business International of University the from graduated 43, aged ,Xinyu Wang .Mr director the as served He .Business of School Booth Chicago of University the from A.B.M a obtained and finance international Investment Capital JP of director managing the as acted has he and 2010 February to 2005 October from Partners MBK of from) Exchange Stock Singapore the on listed (.Ltd Group Pharma Luye of director a was He 2010. September since Limited 2011. September since Company the of director executive-non independent an as acted has He 2010. February to 2008 August

:Supervisors

.Group Hisense of of director legal the and department legal the of head the as served has He 44. aged ,Shun Zhen Liu .Mr Hisense of committee inspection discipline the of secretary deputy the ,department affairs legal the of head deputy the was He the of secretary deputy the ,department affairs legal the of head the been has He 2012. June to 2005 March from Group January since Company the of supervisor a as served has He 2012. July since Group Hisense of committee inspection discipline 2014.

,supervisor tax ,supervisor treasury the as served has She .accountancy in degree s'master a holds 33, aged ,Ling Yu Gao .Ms was She .Electric Hisense of centre finance the of supervisor management financial and supervisor accounting ,supervisor audit head deputy the been has She 2013. February to 2012 April from Electric Hisense of centre finance the of director deputy the of supervisor a as served has She 2013. March since Group Hisense of department management operation and finance the of 2014. January since Company the

promotion management the of director deputy a was He .law in degree bachelor a holds 40, aged ,Jun Jian Zhang .Mr the of director deputy the 2008, March to 2007 March from Company the of company marketing PRC the of department the and 2009 August to 2008 March from Company the of company marketing PRC the of department management integrated of head the been has He 2010. August to 2009 November from Company the of company marketing PRC the of counsel legal the of head the and supervisor a been has He 2012. June to 2010 September from Company the of department affairs legal the 2012. June since Company the of department affairs legal

Firm Law Wenhan and Shandong in office advisory legal the in lawyer time-part a as acted 60, aged ,Cun Qing Guo .Mr the at positions various held and University Shandong of professor and professor associate ,lecturer a ,)文翰律師事務所( and Management of School of head the to assistant an ,Science of Institute the of president deputy the including ,university was Guo .Mr 2002. to 1986 from Rights Property Intellectual and Law Technology of Centre Research the of officer chief the Technology Professional a as nominated was he 1998, In 1995. in University Peking at law of faculty the of scholar visiting a .Group Hisense of president the to assistant an as served he 2004, January to 2003 April From .Province Shandong in Talent the of supervisor a as served has He .Group Hisense of president vice as served he 2011, February to 2004 January From 2014. January to 2006 December from Company

Export & Import Hisense Qingdao of department finance the of head department the was She 38. aged ,Yan Jiang Liu .Ms 2009 March from Electric Hisense of centre finance the of director deputy the and 2009, March to 2004 August from .Ltd .,Co June from Group Hisense of centre management operation and finance the of director deputy the been has She 2010. June to the of supervisor a and 2013 April since Electric Hisense of manager general deputy the been has She 2012. November to 2010 2014. January to 2012 August from Company

:Members Management Senior

in relations public of supervisor a ,department legal corporate the in adviser legal a as served has 41, aged ,Qian Shao Jia .Mr as served He .Group Hisense of office president the of manager and office president the of manager deputy ,office president the president vice the as served has He 2011. March to 2006 June from Electric Hisense of committee supervisory the of chairman 2007. January since Company the of

deputy ,Electric Hisense of department planning financial the of head the as successively served has 39, aged ,Ye Tian .Mr planning financial the of manager deputy ,Group Hisense of company sales the of department business the of manager Development Africa South Hisense of manager general and manager general deputy the ,Electric Hisense of department of manager general and office s'manager general of manager ,department purchase the of manager deputy the and Company August from Electric Hisense of manager general the to assistant the as served has He .Electric Hisense of centre purchase of president vice the and 2013 April to 2010 March from Electric Hisense of manager general deputy the 2010, March to 2006 2013. May since Company the

Huang .Mr .Technology of University China South in mechanics in degree master a holds 55, aged ,Jian Xiao Huang .Mr the of division design conditioner-air the of head the ,department development the of engineer an as served successively has the of manager general the and director marketing international ,department management sales the of head ,department research February from .Ltd .,Co Holdings Marketing International Hisense Qingdao of manager general vice the as acted He . Company 2014. March 27 since Company the of president vice the as acted has Huang .Mr 2014. February to 2007

of analysis financial of head the as successively served has and accountant public certified a is She 39. aged ,Jun Li .Ms the of director deputy the was She .Group Hisense of department audit the of head deputy the and department finance the of supervisor a as acted She 2012. August to 2009 January from Group Hisense of centre management operation and finance the of accountant chief the and finance of charge in person the been has She 2012. August to 2012 June from Company the 2012. August since Company

operating capital the of head the previously was and ,management in degree master a holds 37, aged ,Feng Xia .Mr ,manager deputy and ,Conditioning-Air Hisense of department marketing the of manager deputy ,Group Hisense of department .Electric Hisense of directors of board the to secretary and department securities of manager ,affairs securities of representative 2010. August since Company the of department securities of head the and directors of board the to secretary the been has He

and ,Bradford of University the from Administration Business in degree master a holds 46, aged ,Fong Tak Wong .Ms and Secretaries Chartered of Institute the and Secretaries Chartered of Institute Kong Hong the of member associate an is .Kong Hong of Institute Taxation the of member associate an and adviser tax certified a ,Kingdom United the in Administrators chief the as acted has She 1994. November since .Ltd Consultants Bright General of director managing the as acted has She company joint a as acted She 2010. December since)星薈亞洲有限公司 .(LTD ASIA TEAM STAR of controller financial 2012. June since Company the of secretary company the as acted has and 2012 June to 2011 April from secretary

chief the and department manufacturing refrigerator the of head the was He .engineer senior a is 50, aged ,Qing Yu Zhang .Mr May in Group Hisense joined He 2005. May to 2003 January from .Ltd .,Co Electronics Samsung Suzhou of officer technology of manager general executive deputy the .,Ltd .,Co Electrical) Beijing (Hisense of manager general vice the been has and 2006 and .Ltd .,Co Refrigerator) Guangdong (Ronshen Hisense of manager general vice the .,Ltd .,Co Electrical) Nanjing (Hisense manager general the and director a was Zhang .Mr ..Ltd .,Co Refrigerator) Yangzhou (Ronshen Hisense of manager general the vice the been has He 2010. April to 2008 December from .Ltd .,Co Appliances Electric) Zhejiang (Whirlpool Hisense of 2014. March to 2009 June from Company the of president

deputy 2010, January to 2006 July from Electric Hisense of manager general sales deputy the was 40, aged ,li Yun Wang .Mr general and 2010, October to 2010 January from Company the of company marketing PRC the of manager general executive vice the been has He 2012. February to 2010 November from Company the of company marketing PRC the of manager 2014. March to 2010 December from Company the of president

the within company the of shareholders substantial are profiles above the in mentioned Conditioning-Air Hisense and Group Hisense :Note .Ordinance Futures and Securities the of XV Part of meaning

businesses Principal

and domestic and ,conditioners-air ,refrigerators as such of manufacture and development in engaged principally is Group The .services sale-after of provision and products of sales overseas

DIVIDEND FINAL

31 ended year the for million 1,239RMB of company listed the of shareholders to attributable profit net recorded Group The no (funds reserve any capitalize to not and 2013 year the for dividend any pay to not resolved Board The 2013. December .(2012 December 31 ended year the for Group the by paid was dividend

RESERVES

.statements financial the to) 32-34 (7 Note in out set are Period Reporting the during Group the of reserves the in Movements

RESERVES DISTRIBUTABLE

1. December 31 at as Company the of reserves distributable no was There

FUNDS OF SOURCES AND LIQUIDITY

approximately to amounted Group the of activities operating from generated cash net 2013, December 31 ended year the For .(million 1,098RMB approximately to amounted activities operating from generated cash net 2012: (million 219RMB

approximately to amounting) balances bank pledged including (cash and deposits bank had Group the 2013, December 31 at As 30RMB 2012: (million 192RMB approximately to amounting loans bank and ,)million 516RMB 2012: (million 474RMB .(million

million 566RMB approximately to amounted 2013 December 31 ended year the for Group the of expenditures capital Total .(million 163RMB 2012:(

REMUNERATION' EMPLOYEES AND RESOURCES HUMAN

14,784 ,staff technical 4,617 comprising mainly ,employees 33,090 approximately had Group the 2013, December 31 at As employees 5 had Group The .staff production 12,162 and staff administrative 1,053 ,staff financial 474 ,representatives sales 2013, December 31 ended year the For .degree s'bachelor a with 3,449 and degree s'master a with 258 ,degree doctorate a with .(million 1,541RMB to amounting 2012 in period corresponding (million 2,137RMB to amounted payroll staff s'Group the

POLICY REMUNERATION AND TRAINING' EMPLOYEES

the ,College Hisense by provided platform the on Leveraging .development corporate for basis the are people and Employees and system regulation training a and system curriculum rounded-well a ,system training level-three a established has Company of development the support effectively to as so ,externally and internally resources teacher of up building the promoted actively will Company the ,year Every .resources human added-value achieve and personnel technical and management s'Company the resources human and strategy operational annual the on based employees the for programmes training and education formulate .needs development

173,426. reached participants of number the and ,Period Reporting the during total in courses 3,346 provided has Company The manufacturing ,type culture corporate ,type quality and craftsmanship ,type management enterprise of mainly are courses The staff level ground from ranging ,levels different at employees covering .,etc ,type development and research technology or ,type .management senior to marketing and production line-front as such work for responsible

the to reference by determined is remuneration Staff .staff its for policy remuneration based-position a adopts Company The .factors performance other and position the by assumed responsibility and of importance relative

ASSETS S'GROUP THE ON CHARGE

investment ,)use own for held land leasehold including (equipment and plant ,property s'Group the 2013, December 31 at As as pledged were) million 423RMB 2012: December 31 (million 192RMB approximately of receivables trade and properties .borrowings s'Group the for security

EQUIPMENT AND PLANT ,PROPERTY

.statements financial the to) 12(7 Note in out set are Group the of equipment and plant ,property in movements the of Details

SCHEMES PENSION

.statements financial the to 11 note in out set are 2013 December 31 ended year the for schemes pension s'Group the of Details

HEDGE RELATED ANY AND FLUCTUATION RATE EXCHANGE TO EXPOSURE

denominated were Period Reporting the during Group the of sales overseas the of majority the and purchase the of part Since instruments financial used has Group The .fluctuation rate exchange of risk certain to exposed is Group the ,currency foreign in .purpose hedging rate exchange for contracts forward and bills documentary export/import as such

FLOAT PUBLIC

,knowledge their of best the to and information available publicly on based 2014, March 27 at as that confirm Directors The the of float public the ,Therefore .public the by held are Company the of capital share issued total the of above or 25% of Exchange Stock The on Securities of Listing the Governing Rules the under stipulated requirement the satisfies Company .("Rules Listing Kong Hong "the (Limited Kong Hong

COMMITTEE AUDIT

final the of report and announcement results final the reviewed has Company the of committee audit the of session eighth The 2013. December 31 ended year the for Group the of results

EXPENDITURE CAPITAL

sufficient has Group The .million 211RMB approximately be will 2014 for expenditure capital the that expects Group The .operations daily and plans expenditure capital for requirement funding the meet to funds

DEPOSITS TRUST

the of All .PRC the in institutions financial any with deposits trust any have not did Group the 2013, December 31 at As .Kong Hong and PRC the in institution financial other and banks commercial in deposited been have deposits s'Group

STRUCTURE CAPITAL AND RESOURCES FINANCIAL ,LIQUIDITY

amounted equivalents cash and cash its and borrowings bank term-long any have not did Group the 2013, December 31 at As .Renminbi in denominated are million 328RMB than more which of ,)million 514RMB 2012: (million 474RMB to

to amounted liabilities current-non ,million 8,364RMB to amounted liabilities current s'Group the 2013, December 31 at As .million 2,749RMB to amounted Company the of shareholders the to attributable equity' shareholders and ,million 417RMB of report annual the in contained be will which statements financial the in out set are structure capital s'Group the of Details .Company the

RATIO GEARING

was)assets total/liabilities total :formula the to according calculated (ratio gearing s'Group the 2013, December 31 at As .(79.64% 2012:) 73.39%

DIRECTORS EXECUTIVE-NON INDEPENDENT THE OF INDEPENDENCE

in Directors executive-non independent the of each from confirmation written a received has Board the of session eighth The .Rules Listing Kong Hong the of 3.13 Rule under provided requirements the with accordance in independence their of respect relevant the meet Board the of session eighth the of Directors executive-non independent the all that considers Company The .independent be to them considers and Rules Listing Kong Hong the of 3.13 Rule under requirements

SUPERVISORS AND DIRECTORS OF CONTRACTS SERVICE

not is which Group the of member any with contract service a have Company the of supervisors the and Directors the of None .(compensation statutory than other (compensation of payment without year one within Group the by determinable

CONTRACTS IN INTERESTS' SUPERVISORS AND' DIRECTORS

indirectly or directly not did and not do Company the of supervisors the and Board the of session eighth the of Directors The of end the at or during subsisting subsidiaries its or Company the of significance of contract any in interests material any hold 2013. year the

EXECUTIVE-NON INDEPENDENT BY TRANSACTIONS CONNECTED CONTINUING OF REVIEW DIRECTORS

connected continuing the reviewed have Board the of session eighth the of Directors executive-non independent The of course ordinary the in conducted were transactions these that confirmed and 2013, year the for Group the of transactions were which terms commercial normal on and them governing agreements relevant the with accordance in Group the of business .whole a as Company the of shareholders the of interest the in and reasonable and fair

AUDITORS BY TRANSACTIONS CONNECTED CONTINUING OF REVIEW

relevant the that confirmed Company the of auditors the ,Group the of transactions connected continuing the auditing After the with accordance in out carried were ,Board the by approved been have Group the of transactions connected continuing the exceeded not have and ,transactions relevant the of agreements the of terms the to pursuant policies pricing s'Company .announcements previous the in disclosed caps

DIRECTORS BY TRANSACTIONS SECURITIES FOR CODE MODEL

out set as") Code Model ("Issuers Listed of Directors by Transactions Securities for Code Model the adopted has Company The the to enquiries specific made having After .Directors by transaction securities for code its as Rules Listing Kong Hong the in of term their during Code Model the with compliance full in acted had they that confirmed Board the of Directors all ,Directors .office

STRUCTURE CAPITAL SHARE

:follows as was Company the of structure capital share the 2013, December 31 at As

		Percentage to total the
Class shares of	Number shares of	issued share capital
shares H	459,589,808	33.94%
shares A	894,464,942	66.06%
Total	1,354,054,750	100.00%

SHAREHOLDERS TEN TOP

ten top the which of ,total in") Shareholders "the (Company the of shareholders 29,115 were there 2013, December 31 at As :follows as were Shareholders

of Name Shareholder	of Nature Shareholder	.No shares of held	Percentage to total the issued shares the of Company	Percentage to the relevant class issued of shares the of Company	.No shares of held subject to trading moratorium
Qingdao Hisense -Air conditioning Company Limited	State owned- legal person	612,316,909	45.22%	68.46%	0
1 Note HKSCC Nominees Limited	Foreign legal person	458,988,058	33.90%	99.87%	0
China Huarong Asset Management Company Limited	State owned- legal person	30,000,000	2.22%	3.35%	0
China Construction — Bank Yinhua Prosperity Theme Equity Fund	Other	10,302,800	0.76%	1.15%	0
Zhang Shaowu	Domestic natural person	6,365,400	0.47%	0.71%	0
Industrial and Commercial of Bank China CCB — Principal Selected Growth Stock Based- Securities Investment Fund	Other	4,500,000	0.33%	0.50%	0
Agricultural of Bank — China Fullgoal Tianrui Strong Area Selected Mixed Open Securities Investment Fund	Other	4,111,380	0.30%	0.46%	0
Zhong Wei Juan	Domestic natural person	3,550,000	0.26%	0.40%	0
China Construction Bank China — AMC Dividend Mixed End-Open Securities Investment Fund	Other	3,534,085	0.26%	0.40%	0
Industrial and Commercial of Bank — China Guangfa Jurui Stock Based Securities Investment Fund	Other	3,086,644	0.23%	0.35%	0

:Notes

• Hong (Hisense ,which among ,participants account its of number a of behalf on held are Limited Nominees HKSCC by held shares The 1. H million 54 of holder the is ,Company the of shareholder controlling the with concert in acting party a ,Limited Company) Kong .Company the of shares of number total the of 3.99% representing ,Period Reporting the of end the at total in shares
• there 2014, March 28 on shares A for report annual the of disclosure of date the to prior days trading 5 falling day the of end the At 2. .total in Company the of shareholders 30,370 were

SHARES TRADABLE OF SHAREHOLDERS TEN TOP THE OF SHAREHOLDINGS

of Name Shareholders	Number of tradable shares held	Class shares of
Qingdao Hisense -Air conditioning Company Limited	612,316,909	RMB ordinary shares
HKSCC Nominees Limited	458,988,058	Overseas listed foreign shares
China Huarong Asset Management Company Limited	30,000,000	RMB ordinary shares
China Construction — Bank Yinhua Prosperity Theme Equity Fund	10,302,800	RMB ordinary shares
Zhang Shaowu	6,365,400	RMB ordinary shares
Industrial and Commercial Bank China of CCB — Principal Selected Growth Stock Based- Securities Investment Fund	4,500,000	RMB ordinary shares
Agricultural of Bank — China Fullgoal Tianrui Strong Area Selected Mixed Open Securities Investment Fund	4,111,380	RMB ordinary shares
Zhong Wei Juan	3,550,000	RMB ordinary shares
China Construction Bank China — AMC Dividend Mixed End-Open Securities Investment Fund	3,534,085	RMB ordinary shares
Industrial and Commercial of Bank — China Guangfa Jurui Stock Based- Securities Investment Fund	3,086,644	RMB ordinary shares

AND SHARES THE IN SHAREHOLDERS SUBSTANTIAL OF POSITIONS SHORT AND INTERESTS SHARES UNDERLYING

following the 2013, December 31 at as ,Company the of executive chief the and supervisors ,Directors the to known is as far So the in positions short or interests had) Company the of executive chief the and supervisors ,Directors the than other (persons Divisions of provisions the under Company the to disclosed be to fall would which Company the of shares underlying or shares were which or ,")SFO) ("Kong Hong of Laws the of 571 Chapter (Ordinance Futures and Securities the of XV Part of 3 and 2 The and Company the to notified otherwise as or ,SFO the of 336 section under kept be to required register the in recorded :("Exchange Stock Kong Hong "the (Limited Kong Hong of Exchange Stock

Company the of shares the in position short or position Long

of Name shareholder	Capacity	of Type shares	Number of shares held	Percentage of the respective type shares of	Percentage of total the of number shares issue in
Qingdao Hisense -Air conditioning Company 1 Note Limited	Beneficial owner	shares A	612,316,909 (L(	68.46%	45.22%
Qingdao Hisense Electric Holdings Company 1 Note Limited	of Interest controlled corporation	shares A	612,316,909 (L(	68.46%	45.22%
1 Note Hisense Company Limited	of Interest controlled corporation	shares A	612,316,909 (L(	68.46%	45.22%
1 Note (Hisense Kong Hong Company) Limited	Beneficial owner	shares H	54,000,000 (L(	11.75%	3.99%
Qingdao Hisense Electric Holdings Company 1 Note Limited	of Interest controlled corporation	shares H	54,000,000 (L(	11.75%	3.99%
1 Note Hisense Company Limited	of Interest controlled corporation	shares H	54,000,000 (L(	11.75%	3.99%
Prime Capital Management Company 2 Note Limited	Investment manager	shares H	41,484,000 (L(	9.02%	3.06%
3 Note Morgan Stanley	of Interest controlled corporation	shares H	25,101,579 (L( 9,592,586 (S(	5.46% 2.08%	1.85% 0.71%

.shares the in position short a denotes" S "letter the and shares the in position long a denotes" L "letter The

:Note

• by 6.67% to as owned indirectly and 93.33% to as owned directly company a is Limited Company conditioning-Air Hisense Qingdao 1. owned directly company a is Limited Company) Kong Hong (Hisense whereas ,Limited Company Holdings Electric Hisense Qingdao turn in is Limited Company Holdings Electric Hisense Qingdao .Limited Company Holdings Electric Hisense Qingdao by 100% to as and Limited Company Holdings Electric Hisense Qingdao ,SFO the of virtue By .Limited Company Hisense by 32.36% to as owned conditioning-Air Hisense Qingdao which of shares A of parcel same the in interested be to deemed were Limited Company Hisense .interested was Limited Company) Kong Hong (Hisense which of shares H of parcel same the in and interested was Limited Company
• manager investment an of capacity the in shares H 41,484,000 of total a in interested was Limited Company Management Capital Prime 2. .SFO the of virtue by
• interested was plc International .Co & Stanley Morgan which in ,SFO the of virtue by shares H these in interested was Stanley Morgan 3. Securities Stanley Morgan UFJ Mitsubishi ,shares H 9,249,586 of position short the and shares H 17,472,998 of position long the in the in interested was Limited Financing Equity Stanley Morgan ,shares H 7,041,000 of position long the in interested was .Ltd .,Co short the and shares H 189,488 of position long the in interested was LLC .Co & Stanley Morgan ,shares H 398,093 of position long .shares H 154,000 of position short the in interested was LLC Services Capital Stanley Morgan and shares H 189,000 of position

Company the of executive chief and supervisors ,Directors the as far so in 2013, December 31 at as ,above disclosed as Save the of shares underlying and shares the in person any by held position short or/and interest other no was there ,aware are .SFO the of 336 section to pursuant Company the by kept be to required register the in recorded were which Company

COMPANY THE OF SHAREHOLDERS CONTROLLING THE OF PARTICULARS

• incorporated was ,Company the of shareholder controlling the ,Limited Company Conditioning-Air Hisense Qingdao) a( the and PRC the ,Qingdao ,Zone Industrial tech-Hi ,Road Changsha is address registered Its 1995. November 17 on the is scope business Its .million 674.79RMB is capital registered its and Guo Ye Tang .Mr is representative legal repairing sale-after of provision the and moulds injection and products conditioning-air of manufacture and development the into fall they if above businesses the of operation the for obtained be shall licence/Permit (products its for services .(licensure of requirements
• with 1979 August in incorporated was which ,Limited Company Hisense is Company the of controller beneficial The) b( representative legal the is Houjian Zhou .Mr .Qingdao ,Shinan ,Road West Donghai 17 .No at address registered its the :includes business of scope The .million 806.17RMB is capital registered its and Limited Company Hisense of washing ,freezers ,refrigerators ,sets TV of sales and manufacture the; assets owned-state of operation entrusted electronic ,conditioners-air ,appliances broadcasting ,sets audio ,players disc ,appliances household small ,machines related of provision the and products electronic and products internet ,products communication ,telephones ,computers the and development technological the; services internet of provision the and software of development the; services of list the to subject operation its with (business export and import operated-self the; services consultation of provision the to subject operation its with (cooperation technical and economic foreign the); MOFTEC the by approved as projects and brokerage of provision and transaction rights property of operation); MOFTEC the by approved as projects of list property ,trainings business relevant of provision; services agency travel industrial of provision; services information the for obtained be shall licence/Permit (property immovable of leasing and property tangible of leasing ,management .(licensure of requirements the into fall they if above businesses the of operation
• Administration and Supervision Assets owned-State the is Company the of controller beneficial ultimate The) c( .Government s'People Municipal Qingdao of Commission
• controllers beneficial its and Company the between Relationship) d(

.Company the of shareholders controlling the in change no was there ,Period Reporting the During) e(

,SHARES THE IN EXECUTIVES CHIEF AND SUPERVISORS ,DIRECTORS OF INTERESTS DEBENTURES AND SHARES UNDERLYING

under" Period Reporting the during options share the of Movements "section-sub in disclosed as save 2013, December 31 at As the of none ,below" thereunder grant the and scheme incentive option share first of adoption on Summary "headed section the ,shares any in positions short or interests any held Company the of executive chief the and supervisors ,Board the of members the of XV Part of meaning the within (corporations associated its of any and Company the of debentures and shares underlying otherwise as or SFO the of 352 section to pursuant Group the by maintained be to required register the in recorded as ,)SFO .Code Model the to pursuant Exchange Stock Kong Hong the and Company the to notified

SUPPLIERS AND CUSTOMERS MAJOR

was suppliers five top the from purchases s'Group the of amount aggregate the 2013, December 31 ended year the During amount sales aggregate the and year the for Group the of amount purchase total the of 17.46% representing ,million 2,983RMB As .year the for Group the of amount sales total the of 28.64% representing ,million 6,352RMB was customers five top the to more held ,Directors the of knowledge the to ,who Shareholders or associates their ,Directors the of none 2013, December 31 at .customers or suppliers above the in interest any had ,Company the in shares the of 5% than

SHARES OF REDEMPTION OR SALE ,PURCHASE

the of any redeemed or sold ,purchased has subsidiaries its of any nor Company the neither ,Period Reporting the During .securities listed s'Company

AUDITOR

appoint-re to agreed Company the ,meeting general' shareholders the at approved and considered as 2013, June 26 On 2013, of year financial the for Company the of auditor the as) LLP (Accountants Public Certified China Horwath Crowe Public Certified China Horwath Crowe of name the 2013, July 1 On .remuneration their fix to authorized was Board the and ."Accountants Public Certified Ruihua "to changed was) LLP (Accountants

RIGHTS EMPTIVE-PRE

.laws PRC relevant the or Company the of Association of Articles the under rights emptive-pre for provision no is There

TAXATION

10% of rate the at tax income corporate pay and withhold to required is Company the ,regulations tax relevant the to Pursuant .members of register share-H the on appear names whose shareholders enterprise resident-non to dividends distributing when

GRANT THE AND SCHEME INCENTIVE OPTION SHARE FIRST OF ADOPTION ON SUMMARY THEREUNDER

Scheme the of Purpose) 1(

Scheme The 2011. August 1 on Company the by adopted was") Scheme "the (scheme incentive option share first The retention and rewards term-long provide ,Company the of structure management the refine further to formulated is ,Company the of personnel management and sales ,technical key ,management level-mid and senior the for incentives the of development term long the with interests their correlate closely ,creativity and activeness-pro their motivate fully .Company the of development sustainable allow and ,Company

who directors external and directors independent the of exclusive (Company the of directors the include participants The management senior ,)subsidiaries its and Company the than other (subsidiaries its and Group Hisense of officers not are officers other and secretary company ,Board the to secretary ,controller financial ,president vice ,president including( management level-mid ,Company the of) Association of Articles the under management senior as regarded are which as subsidiaries its and Company the of personnel technical key such and ,subsidiaries its and Company the of staff .Board the by determined

Directors the of Report

Period Reporting the during options share the of Movements) 2(

	Name .No	Position	Outstanding options share January 1 at as ten (2013 thousand (shares	of Number options share or exercised cancelled the during Reporting ten (Period thousand (shares	of Number options share during lapsed Reporting the ten (Period thousand (shares	Outstanding options share 31 at as 2013 December thousand ten( (shares	percentage a As total the of capital share	percentage a As capital share of same the of (shares A (class	of Number options share exercisable thousand ten( (shares
1	Guo Ye Tang	Chairman	126	—	—	126	0.093%	0.141%	41.58
2	Lin Jian Xiao	Director President ,	82.8	—	—	82.8	0.061%	0.093%	27.324
3	Qian Shao Jia	President-Vice	82.8	—	—	82.8	0.061%	0.093%	27.324
4	Ren Li Ren	Director Former	72	—	—	72	0.053%	0.080%	23.76
5	Qing Yu Zhang	Former President-Vice	82.8	—	—	82.8	0.061%	0.093%	27.324
6	Li Yun Wang	Former President-Vice	82.8	—	—	82.8	0.061%	0.093%	27.324
7	He Yong Gan	Director Former	18.1	—	—	18.1	0.013%	0.020%	5.973
8	Jun Jian Zhang	Supervisor	5.6	—	(2 Note (5.6	0	0	0	0
9	level Mid management key and staff personnel		1,398.1	—	461.2	936.9	0.69%	1.047%	309.177
	Total		1,951	—	466.8	1,484.2	1.096%	1.659%	489.786

.granted been have Scheme the under issue for available options share All 1. :Notes

56,000 the and participant eligible an longer no is he ,Company the of supervisor a as served Jun Jian Zhang .Mr As 2. .lapsed Zhang .Mr by held options share

any by acquired be may which shares underlying of number aggregate the ,meeting general the by approved Unless time any at) any if (Company the of schemes incentive option share effective other or Scheme the through participant be may which entitlement maximum the and ,class same the of capital share total s'Company the of 1% exceed not shall shall period month12- any within) options share outstanding and cancelled ,exercised including (participant a to granted .class same the of capital share total s'Company the of 1% exceed not

options share the of date grant The) 3(

1. August 31 is options share the of date grant The

options share the of period Validity) 4(

.date grant the from commencing years 5 of term a be shall grant the under options share the of period validity The

Arrangement Exercise) 5(

the period which during ,years 2 of period restriction a to subject is grant the under options share the of exercise The .exercisable not are rights

after batches in exercised be can grant the under options share the ,conditions exercise the of fulfillment the to Subject :arrangement exercise following the to according date grant the from period year2- the of expiry the

• immediately day trading the on exercisable become shall participant each to granted options share the of 33% .i fifth the on falling day trading the until) 2013 September 2 (date grant the of anniversary second the after ;(2016 August 31 (date grant the of anniversary
• day trading the on exercisable become shall participant each to granted options share the of 33% another .ii the on falling day trading the until) 2014 September 1 (date grant the of anniversary third the after immediately and); 2016 August 31 (date grant the of anniversary fifth
• day trading the on exercisable become shall participant each to granted options share the of 34% remaining the .iii the on falling day trading the until) 2015 September 1 (date grant the of anniversary fourth the after immediately .(2016 August 31 (date grant the of anniversary fifth

total the of 20% than less not of options share ,management senior the of member or director a is participant the Where in above or grade pass a reached has participant the after exercised be only can participant such to granted options share .(office or (employment her/his for appraisal performance the

from obtain can participants the which gain maximum the ,options share the of period validity the during ,addition In option share the from gain the of inclusive (level remuneration their of 40% exceed not shall incentives option share the the exceeds incentive option share the from gain the that event the In .granted were options share the when) incentives .exercised be not will exercised been not have which options share ,proportion above

price exercise of method Determination) 6(

last the on shares A the of price closing the) i (:prices two following the of higher the is grant the of price exercise The November 29 ,is that (Scheme the of summary the of announcement the of date the preceding immediately day trading trading 30 last the during shares A the of price closing average the) ii (and; share per 7.65RMB was which ,)2010 .share per 7.37RMB was which ,Scheme the of summary the of announcement of date the preceding immediately days .share per 7.65RMB is price exercise the ,Therefore

Period Reporting the for position financial the on scheme incentive option share s'Company the of Effect) 7(

Holdings Electrical Kelon Hisense of Scheme Incentive Option Share First the of requirements the with accordance In calculate to model pricing option Scholes-Black the use to elected has Company the ,)Draft Revised (Limited Company the ,model pricing such by calculation the to According .Scheme the under granted options share the of value fair the .scheme incentive option share this to relation in total in million 1.5015RMB of expense an recognized Company

the during Company the of transactions connected material of Particulars Period Reporting

the ,Agreement Framework Purchase Compressors the into entered Company the 2012, December 6 On) I( ,Agreement Framework operation-Co Business the ,Agreement Framework Supply and Purchase Compressors Framework Business ,Agreement Framework Services Property the ,Agreement Framework Agency Export the with Agreement Framework Agency Financing Purchase the and 2 Agreement Framework Business 1, Agreement ,Marketing Hisense ,Group Snowflake Beijing ,Electric Hisense ,Group Hisense ,Compressor Huayi ,Embraco .respectively Kong Hong Hisense and Whirlpool — Hisense ,Hitachi Hisense

equity the of 45% holds which shareholder substantial a ,Group Snowflake Beijing by 30.82% to as held is Embraco and Embraco therefore and) Company the of subsidiary owned wholly-non a being (Refrigerator Beijing in interests .Rules Listing Kong Hong the to according Company the of persons connected are Group Snowflake Beijing

both (Mould Kelon of 29.89% and Plastic Ronshen of 29.95% holding shareholder substantial a is Compressor Huayi the of person connected a is Compressor Huayi therefore and) Company the of subsidiaries owned wholly-non being .Rules Listing Kong Hong the to according Company

the of shareholder substantial a being of virtue by Company the of person connected a is conditioning-Air Hisense issued the of 3.99% holds Kong Hong Hisense and Company the of shares issued the of 45.22% holding ,Company Hong Hisense and conditioning-Air Hisense of 32.36% owns indirectly Group Hisense As .Company the of shares by) agreement the of date the at as 41.25% to as owned then (40.37% to as owned is Electric Hisense and Kong Hisense limitation without including (subsidiaries respective their and Electric Hisense ,Group Hisense ,Group Hisense As .Rules Listing Kong Hong the to according Company the of persons connected are) subsidiaries its and Marketing Hisense ,Whirlpool — Hisense and Hitachi Hisense of management senior also are Company the of directors certain Listing the Governing Rules the to according Company the of persons connected are Whirlpool — Hisense and Hitachi .Exchange Stock Shenzhen the on Stocks of

Supply and Purchase Compressors the ,Embraco with Agreement Framework Purchase Compressors the of Details Hisense with Agreement Framework operation-Co Business the ,Compressor Huayi with Agreement Framework Services Property the ,Marketing Hisense with Agreement Framework Agency Export the ,Electric Hisense and Group and Hitachi Hisense with 1 Agreement Framework Business ,Group Snowflake Beijing with Agreement Framework published circular the and announcement the in found be can Whirlpool-Hisense with 2 Agreement Framework Business 2013 January 4 and 2012 December 6 on) hk.com.hkex.www://http (Exchange Stock Kong Hong the of website the on .respectively

a is Kong Hong Hisense ,Company the and Kong Hong Hisense both of controller beneficial the is Group Hisense As .Exchange Stock Shenzhen the on Stocks of Listing the Governing Rules the under Company the of person connected Listing Kong Hong the of A14 Chapter to pursuant Company the of person connected a also is Kong Hong Hisense would Agreement Framework Agency Financing Purchase the under arrangement assistance financial the Since .Rules was Company the of assets the over security no where terms commercial normal on Company the of benefit the for be announcement ,reporting the from exempt was arrangement such ,assistance financial the of respect in granted be to Purchase the of Details .Rules Listing Kong Hong the to pursuant requirements approval' shareholders independent and Kong Hong the of website the on published announcement the in found be can Agreement Framework Agency Financing 2012. December 6 on) hk.com.hkex.www://http (Exchange Stock

Business the and Hitachi Hisense with 1 Agreement Framework Business the than other (transactions above The A14 Chapter under transactions connected continuing constitute) Whirlpool-Hisense with 2 Agreement Framework in requirements disclosure the with complied had it that confirmed Company The .Rules Listing Kong Hong the of the than other (transactions connected relevant the for Rules Listing Kong Hong the of A14 Chapter with accordance independent and announcement ,reporting the from exempt is which Agreement Framework Agency Financing Purchase Compressors the of information Specific .)Rules Listing Kong Hong the to pursuant requirements approval' shareholders Framework Services Property the and Agreement Framework Agency Export the ,Agreement Framework operation-Co Business the ,Agreement Framework Supply and Purchase Compressors the ,Agreement Framework Purchase :follows as out set is Agreement

Embraco with Agreement Framework Purchase Compressors The 1.

refrigerators to limited not but including ,appliances electrical home of manufacture the in engaged is Group The factors of range a considering After .products its for component a as compressors requires which ,freezers and its or/and Embraco by manufactured compressors the of compatibility the and price the ,quality the including as Group the by manufactured freezers and refrigerators the and by used facilities current the with subsidiaries /and Embraco that considers Group the ,subsidiaries its or/and Embraco by provided services of level the as well have can Group the ,addition In .Group the to compressors supply to position good a in are subsidiaries its or ,subsidiaries its or/and Embraco from compressors of purchase bulk out carrying by power bargaining bigger the into entered Company the ,such As .competitiveness product increasing and costs purchase reducing thus :follows as are which of terms principal the ,Embraco with Agreement Framework Purchase Compressors

December 31 to 2013 January 1 from commence shall Agreement Framework Purchase Compressors The) 1( .parties the of agreement mutual by expiration its before terminated be can which 2013,

• confirmed be will which compressors of price market the be will compressors of purchase the for Pricing) 2( reasonableness and fairness of principles the to according parties the between negotiation commercial by the of business of course usual and ordinary the in conducted be will transactions Such .time to time from available terms than parties the to favourable less not terms on and terms commercial normal on ,parties .parties third independent) appropriate as (from or to
• as) s(term payment the with accordance in be shall compressors of purchase the for) s(term Payment) 3( .thereto parties relevant the by signed be to) s(contract definitive the in stipulated
• the to subject are Agreement Framework Purchase Compressors the under contemplated transactions The) 4( .(tax added-value of exclusive (106,840,000RMB of cap annual

Compressor Huayi with Agreement Framework Supply and Purchase Compressors The 2.

refrigerators to limited not but including ,appliances electrical home of manufacture the in engaged is Group The factors of range a considering After .products its for component a as compressors requires which ,freezers and /and Compressor Huayi by manufactured compressors the of compatibility the and price the ,quality the including Group the by manufactured freezers and refrigerators the and by used facilities current the with subsidiaries its or considers Company the ,subsidiaries its or/and Compressor Huayi by provided services of level the as well as In .Group the to compressors supply to position good a in are subsidiaries its or/and Compressor Huayi that from compressors of purchase bulk out carrying by power bargaining bigger have can Group the ,addition .competitiveness product increasing and costs purchase reducing thus ,subsidiaries its or/and Compressor Huayi Huayi with Agreement Framework Supply and Purchase Compressors the into entered Company the ,such As :follows as are which of terms principal the ,Compressor

• approval of date the from commence shall Agreement Framework Supply and Purchase Compressors The) 1( that (shareholders independent the by Agreement Framework Supply and Purchase Compressors the of mutual by expiration its before terminated be can which 2013, December 31 until) 2013 January 25 ,is .parties the of agreement
• confirmed be will which compressors of price market the be will compressors of purchase the for Pricing) 2( reasonableness and fairness of principles the to according parties the between negotiation commercial by the of business of course usual and ordinary the in conducted be will transactions Such .time to time from available terms than parties the to favourable less not terms on and terms commercial normal on ,parties .parties third independent) appropriate as (from or to
• Framework Supply and Purchase Compressors the under contemplated transactions the for) s(term Payment) 3( be to) s(contract definitive the in stipulated as) s(term payment the with accordance in be shall Agreement .thereto parties relevant the by signed
• are Agreement Framework Supply and Purchase Compressors the under contemplated transactions The) 4( .(tax added-value of exclusive (1,180,000,000RMB of cap annual the to subject

Electric Hisense and Group Hisense with Agreement Framework operation-Co Business The 3.

,Group Hisense to Group the by materials raw and appliances electrical home of supply the ,hand one the On Group the of costs production the lower to help can subsidiaries respective their or/and Electric Hisense the of competitiveness market the enhance turn in which ,level production in increase the of result a as brand enhance and market overseas develop to continue can Group the ,time same the At .products s'Group the through products selling by share market increase also can Group The .awareness and competitiveness Provision .links circulation product the reduces which Electric Hisense and Group Hisense of platform online ,hand other the On .Group the of income the increase will subsidiaries its or/and Group Hisense to services of /and Electric Hisense ,Group Hisense by provided services and prices ,quality product the account into taking and parts and materials raw ,equipment ,appliances electrical home of purchases ,subsidiaries respective their or their of engagement and subsidiaries respective their or/and Electric Hisense ,Group Hisense from components also can and ,business related of development the and Company the of needs manufacture the meet can services Framework operation-Co Business the into entered Company the ,such As .time same the at costs reduce help :follows as are which of terms principal the ,Electric Hisense and Group Hisense with Agreement

• the of approval of date the from commence shall Agreement Framework operation-Co Business The) 1( (2013 January 25 ,is that (shareholders independent the by Agreement Framework operation-Co Business the of agreement mutual by expiration its before terminated be can which 2013, December 31 until .parties
• Hisense and hand one the on Company the between appliances electrical home of purchase the for Pricing) 2( the between negotiation commercial by determined is hand other the on Electric Hisense and Group market the to reference with mainly reasonableness and fairness of principles the to according parties ,materials raw of purchase the for Pricing .time to time from appliances electrical home similar of price Hisense and Group Hisense and hand one the on Company the between components and parts ,equipments the to according parties the between negotiation commercial by determined is hand other the on Electric Hisense to Company the by moulds of supply the for Pricing .reasonableness and fairness of principles the for Pricing .process bidding open the by determined price market the is Electric Hisense and Group Electric Hisense and Group Hisense and hand one the on Company the between services of provision and fairness of principles the to according negotiations commercial by determined is hand other the on services similar of provision the for price market the to reference with parties the between reasonableness .industry the in
• and Group Hisense and hand one the on Company the between transactions the for) s(term Payment) 3( the in stipulated as) s(term payment the with accordance in be shall hand other the on Electric Hisense .thereto parties relevant the by signed be to) s(contract definitive

	:Unit ten (RMB thousand	) ( exclusive -value	(tax added
Types connected of transactions	Division products by services or	Connected person	cap Annual
Sale products of materials and	home of Sale electrical appliances products Group the by	Group Hisense Hisense Electric	288,867 30
	Sale equipment of Group the by	Group Hisense	855
	moulds of Sale Group the by	Group Hisense Hisense Electric	27,137 8,718
	of Sale materials raw and parts , components Group the by	Group Hisense Hisense Electric	2,191 444
Provision services of	Provision loading of unloading and design , equipment , and rental property services Group the by	Group Hisense	690
Purchase products of materials and	Purchase home of electrical appliances products Group the by	Group Hisense Hisense Electric	60 150
	of Purchase materials raw and parts , components Group the by	Group Hisense Hisense Electric	2,349 3,034
	Purchase equipment of Group the by	Hisense Group	855
Receipt services of	Receipt material of processing installation , and maintenance ,property , ,medical design ,leasing inspection , agency , services and import for export property , construction management , consultancy technical , and support information system maintenance Group the by	Group Hisense	10,611
	Receipt material of processing and property , design product by services Group the	Hisense Electric	1,873

:below table the in shown are Agreement Framework operation-Co Business the under caps annual The) 4(

Marketing Hisense with Agreement Framework Agency Export The 4.

mature and expertise professional ,operations overseas in experience' years 10 over has Marketing Hisense ,Marketing Hisense of services agency export the engaging By .market overseas in channels and networks market Group the ,expansion market international its for Group the to services management professional provides which the utilize and ,itself by operation the running for committed be would which costs the reduce largely can ,exported be to products the for warranties quality the and development and research the on resources available the ,such As .business export its of development stable the enhancing in Group the to beneficial be will which of terms principal the ,Marketing Hisense with Agreement Framework Agency Export the into entered Company :follows as are which

• Export the of approval of date the from commence shall Agreement Framework Agency Export The) 1( 31 until) 2013 January 25 ,is that (shareholders independent the by Agreement Framework Agency .parties the of agreement mutual by expiration its before terminated be can which 2013, December
• of goods white the for export for services agency the of provision the for Group the by payable fees The) 2( products of type relevant the of export from revenue s'Group the multiplying by calculated is Group the (RMB in customers party third to Group the by sales for revenue of amount final the be shall which( actually charges the of rate audited the consideration into Taking .percentage fee agency export an with the to export for services agency providing for subsidiaries its or/and Marketing Hisense by incurred the during incurred actually charges the of rate the 2012, June to 2011 March from period the for Group margin profit corresponding the and percentage base the as used be shall) 7.24% being (2012 of half first be shall subsidiaries its or/and Marketing Hisense to Group the by payable services agency export for services agency export the to subject export from revenue the of rate growth the to according determined Agency Export the of term the during percentage fee agency export the which to pursuant 2013, in .below table the in provided as determined be also shall Agreement Framework

The of rate revenue growth from export subject the to export agency services	Corresponding profit margin for export agency services	Corresponding export agency fee percentage
0% Below	0%	7.24%
0-5% inclusive ( (5% of	0.5%	7.74%
5-10% inclusive ( (10% of	0.8%	8.04%
10-15% inclusive ( (15% of	1%	8.24%
Above 15%	1.1%	8.34%

• s'Group the = (services agency export the to subject export from growth revenue of rate The :Note audited s'Group the — 2013 in services agency export the to subject export from revenue audited revenue audited s'Group the/)2012 in services agency export the to subject export from revenue 2012. in services agency export the to subject export from
• relevant the and basis monthly a on calculated be will services aforesaid the of provision the for fees The) 3( transfer telegraphic of way by month preceding the for fee monthly the pay should Group the of members .bills or
• of cap the to subject are Agreement Framework Agency Export the under contemplated transactions The) 4( 280,000,000.RMB

Group Snowflake Beijing with Agreement Framework Services Property The 5.

provision the for experience and expertise the possess subsidiaries relevant its and Group Snowflake Beijing by ,addition In .smoothly operation daily its out carry to Company the enable can which services property of its and Group Snowflake Beijing by services property of provision the for advantages price the on leveraging Property the into entered Company the ,such As .costs its reduce to able is Group the ,subsidiaries relevant :follows as are which of terms principal the ,Group Snowflake Beijing with Agreement Framework Services

• 31 to 2013 January 1 from commence shall Agreement Framework Services Property the of term The) 1( .parties the of agreement mutual by expiration its before terminated be can which 2013, December
• or/and Group Snowflake Beijing by services property of provision the for Group the by payable fees The) 2( principles the to according parties the between negotiation commercial by determined is subsidiaries its services similar of provision the for price market the to reference with reasonableness and fairness of the of business of course usual and ordinary the in conducted be will transactions Such .time to time from to available terms than parties the to favorable less not terms on and terms commercial normal on ,parties .parties third independent) appropriate as (from or
• payment and basis quarterly or monthly a on calculated be will services such of provision the for fees The) 3( members relevant the by bills or transfer telegraphic by made be should fee quarterly or monthly such for .Group the of
• the to subject are Agreement Framework Services Property the under contemplated transactions The) 4( 32,000,000.RMB of cap annual

entered been have operation ordinary to relation in transactions connected certain ,Period Reporting the During) II( :follows as are which of details ,into

			Pricing	Connected transaction	Percentage of total amount
			principle of	amount	similar of
	of Type connected	Particulars of connected	connected	ten RMB(	transactions
Connected parties	transaction	transaction	transaction	(thousand	(%)
— Hisense Whirlpool	Purchase	Finished goods	Agreed price	65,476.97	3.44
Hisense Electric	Purchase	Finished goods	Agreed price	40.91	0.00
Hisense Group	Purchase	Finished goods	Agreed price	16.74	0.00
Huayi Compressor	Purchase	Materials	Agreed price	79,287.61	4.16
Embraco	Purchase	Materials	Agreed price	5,540.86	0.29
— Hisense Whirlpool	Purchase	Materials	Agreed price	641.50	0.03
Hisense Hitachi	Purchase	Materials	Agreed price	765.89	0.04
Hisense Group	Purchase	Materials	Agreed price	1,229.71	0.06
Hisense Electric	Purchase	Materials	Agreed price	2,104.53	0.11
Hisense Group	Purchase	and Moulds equipment	Agreed price	4.41	0.00
Hisense Group	Receipt services of	Receipt services of	Agreed price	31,400.84	1.65
Snowflake	Receipt services of	Receipt services of	Agreed price	1,846.45	0.10
Hisense Electric	Receipt services of	Receipt services of	Agreed price	903.78	0.05
Hisense Kong Hong	Purchase	Purchase financing agency	Agreed price	14,523.14	0.76
Hisense Electric	Sale	Finished goods	Agreed price	10.26	0.00
— Hisense Whirlpool	Sale	Finished goods	Agreed price	14.63	0.00
Hisense Hitachi	Sale	Finished goods	Agreed price	7,089.97	0.29
Hisense Group	Sale	Finished goods	Market price	263,087.28	10.80
— Hisense Whirlpool	Sale	Materials	Agreed price	2,152.85	0.09
Hisense Group	Sale	Materials	Agreed price	865.01	0.04
Hisense Hitachi	Sale	Materials	Agreed price	139.09	0.01
Hisense Electric	Sale	Materials	Agreed price	417.58	0.02
Hisense Group	Sale	and Moulds equipment	Market price	18,237.43	0.75

Connected parties	of Type connected transaction	Particulars of connected transaction	Pricing principle of connected transaction	Connected transaction amount ten RMB( (thousand	Percentage of total amount similar of transactions (%)
Hisense Hitachi	Sale	Moulds	Market price	11.88	0.00
—Hisense Whirlpool	Sale	and Moulds equipment	Market price	713.96	0.03
Hisense Electric	Sale	Moulds	Market price	7,233.07	0.30
—Hisense Whirlpool	Provision services of	Provision services of	Agreed price	271.09	0.01
Hisense Group	Provision services of	Provision services of	Agreed price	245.56	0.01

interest and 318,093,800RMB of deposit of balance the had subsidiaries its and Company the 2013, December 31 at As of bill acceptance bank electronic of balance 0,RMB of loan of balance actual the 2,087,900,RMB of received income accounts opening for fee handling the and 225,500RMB of notes discounted for payment interest 1,093,009,200,RMB .Finance Hisense with 1,454,800RMB of bill acceptance bank electronic for

A14 Chapter under meaning the within (persons connected its and Company the ,Period Reporting the During) III( the between transactions involving ,agreements following the into entered have) Rules Listing Kong Hong the of :Period Reporting the after persons connected relevant the and Group

.No	Agreement	Counterparty to the agreement	Particulars of connected transactions	Annual cap
1	Business Co operation- Framework Agreement	Hisense and Group Hisense Electric	Purchase home of electrical appliances by Group the	RMB 1,110,000
	21 dated November 2013		of Purchase equipment by Group the	RMB 4,000,000
			Purchase raw of materials and parts , components by Group the	RMB 67,980,000
			of Receipt by services Group the	RMB 130,120,000
			Receipt agency of for services of export white goods by products Group the	RMB 366,830,000
			Supply home of electrical appliances by Group the	RMB 3,039,800,000
			of Supply equipment by Group the	RMB 8,560,000
			of Supply by moulds Group the	RMB 349,680,000
			Supply raw of materials and parts , components by Group the	RMB 29,050,000
			Provision of by services Group the	RMB 6,870,000
2	Financial Services	Hisense Finance	Receipt deposit of services and loan ,	Deposit :services
	Agreement 21 dated		electronic bank acceptance bill services	RMB 800,000,000
	November 2013		( draft ,) discount 電子銀行承兌匯票	( of inclusive ;(interest
			(services 票據貼現服務 ,) settlement	and loan electronic bank
			sale and foreign of exchange services	acceptance bill :services
			( 結售匯服務 ) agency and services such	RMB 2,200,000,000
			as settlement services for and receipt payment ( funds of 資金收支結算等代理	inclusive( interest of service and ;(charges
			(類服務	draft discount :services
				RMB 50,000,000 ;
				settlement and
				sale foreign of
				exchange :services
				US \$500,000,000 ;
				agency services as such
				settlement services for
				and receipt of payment funds RMB : 5,000,000
3	Purchase Financing Agency Framework Agreement 21 dated November 2013	Hisense Kong Hong	of Receipt financing agency by services Group the purchase to imported raw materials and components	US \$36,000,000

Framework Agency Financing Purchase the and Agreement Framework operation-Co Business the of term The 10 ,is that (shareholders independent the by agreements such of approval of date the from commences Agreement date the from commences Agreement Services Financial the of term the whereas 2014, December 31 until) 2014 January 31 until) 2014 January 10 ,is that (shareholders independent the by Agreement Services Financial the of approval of Finance Hisense ,Electric Hisense ,Group Hisense and hand one on Group the between relationship The 2015. December .above disclosed been has hand other the on Kong Hong Hisense and

Hong the of website the on published circular the and announcement the in found be can agreements the of Details .respectively 2013 December 18 and 2013 November 21 on) hk.com.hkex.www://http (Exchange Stock Kong

PRACTICES GOVERNANCE CORPORATE ON CODE

code the with complied has Company the ,Period Reporting the during ,Company the of information and knowledge best the To .Rules Listing Kong Hong the to 14 Appendix in out set as Code Governance Corporate the in provisions

Stock KONG HONG The by required as information Supplementary :Note results annual share A s'Company the to relation in Exchange announcement

Company the of management senior and supervisors ,Directors of remuneration the of Particulars .I

Name	Position	Gender	Age	Term Office of	Total remuneration received from the Company ten RMB( (thousand	Actual remuneration received at of end the the Reporting Period RMB ( ten (thousand
Tang Guo Ye	Chairman	Male 51		2012.06.26-2015.06.25	99.92	99.92
Yu Min Shu	Director	Female	62	2012.06.26-2015.06.25	—	—
Lan Lin	Director	Male 56		2012.06.26-2015.06.25	—	—
Xiao Lin Jian	Director	Male 46		2012.06.26-2015.06.25	—	—
	President			2014.03.27-2015.06.25
Ren Li Ren	Former Director	Male 49		2012.06.26-2014.03.26	88.59	88.59
	Former President			2012.06.26-2014.03.26
Gan He Yong	Former Director	Male 46		2012.06.26-2014.03.26	139.69	139.69
	Former Vice President			2012.06.26-2014.03.26
Xu Yi Xiang	Independent non executive- Director	Male 58		2012.06.26-2015.06.25	9.00	9.00
Wang Guo Ai	Independent non executive- Director	Male 49		2012.06.26-2015.06.25	9.00	9.00
Wang Yu Xin	Independent non executive- Director	Male 43		2012.06.26-2015.06.25	24.00	24.00
Liu Shun Zhen	Chairman of Supervisory Committee	Male 44		2014.01.10-2015.06.25	—	—
Gao Ling Yu	Supervisor	Female 33		2014.01.10-2015.06.25	—	—

Name Zhang Jun Jian	Position Employee Representative Supervisor	Gender Male 40	Age	Term Office of 2012.06.26-2015.06.25	Total remuneration received from the Company ten RMB( (thousand 33.77	Actual remuneration received at of end the the Reporting Period RMB ( ten (thousand 33.77
Jia Qian Shao	Vice President	Male 41		2012.06.26-2015.06.25	63.97	63.97
Ye Tian	Vice President	Male 39		2013.05.17-2015.06.25	128.44	128.44
Zhang Qing Yu	Former Vice President	Male 50		2012.06.26-2014.03.26	99.61	99.61
Wang Li Yun	Former Vice President	Male 40		2012.06.26-2014.03.26	118.51	118.51
Jun Li	Person charge in finance of	Female	39	2012.08.15-2015.06.25	94.67	94.67
Feng Xia	Secretary to Board the	Male 37		2012.06.26-2015.06.25	34.25	34.25
Wong Fong Tak	Company Secretary	Female	46	2012.06.26-2015.06.25	15.93	15.93
Guo Cun Qing	Former Chairman of Supervisory Committee	Male 60		2012.06.26-2014.01.09	—	—
Liu Yan Jiang	Former Supervisor	Female	38	2012.08.15-2014.01.09	—	—

and supervisors ,Directors the of remuneration the of determination of basis and procedures making-decision The .II :follows as are management senior

the by Board the to made suggestions on based determined is Company the of Directors the of remuneration the remuneration the and Directors the of duties the of basis the on Board the of committee appraisal and remuneration the and Board the by approval and consideration to subject is and ,industry same the in companies listed other of level ;meetings general at shareholders

basis the on committee supervisory the by made suggestions on based determined is supervisors the of remuneration the subject is and industry same the in companies listed other of level remuneration the and supervisors the of duties the of ;meetings general at shareholders the and Board the by approval and consideration to

senior the on based Board the to suggestion remuneration makes Board the of committee appraisal and remuneration the /his and pressure ,risk ,management her/his under operation for undertaken responsibilities ,experience s'management by received remuneration final The .Board the by approved and determined is which ,Company the to contribution her .review performance annual her/his with linked also is management senior the

accordance in management senior and supervisors ,Directors the of remuneration the pays and determines Company The .procedures and requirements above the with

Company the of arbitrations and litigations Material .III

Applicable Not □ Applicable√

General of status litigation the (arbitration(	Amount involved ten RMB( (thousand	a Whether is liability to expected incurred be	of Progress litigation the (arbitration(	Results effects and of litigation the (arbitration(	Execution the of judgment the of litigation (arbitration (
of series A party related transactions unusual and flows cash occurred between Greencool the Companies and Company the the during period October from July to 2001 2005. addition In the during , ,period Greencool the ,Companies through specific certain party third companies as such Lixin Tianjin Commercial Trading Development Company ,Limited involved were series a in unusual of flow cash with .Company the Company The instituted has proceedings against Greencool the Companies such for transactions and cash unusual flows as well as suspected the fund embezzlements	72,541.44	No	28 On 2013, March Company the received of notice a from execution Foshan the Intermediate in Court the to relation certain matters the concerning resumption execution of cases the of involving Greencool the Companies Foshan the , Intermediate Court start would execution the procedures cases such of accordance in with Notice "the by issued Supreme the s'People on Court resumption the execution of procedures against Greencool the Companies accordance in " law the with distribute and relevant the a on assets .basis rata-pro On 2013, June 13 Yangzhou Refrigerator received the from Intermediate s'People Court Yangzhou of Jiangsu ,City Province total the RMB of sum 75,770,000 recovered execution from related the of of cases Yangzhou Refrigerator against Yangzhou Greencool Venture Capital Company Limited 27 On . 2013, August Company the and subsidiaries its which in a holds it controlling interest equity Guangdong , Air Conditioner and Fittings Kelon received from Foshan the Intermediate sum the Court RMB of 310,675,400 the from of execution cases the involving Greencool .Companies On December 23 2013, Company the from received Foshan the Intermediate Court execution the judgment Fo) 2008 (of Zhong Zi Zhi Fa 2009 (853, .No Zhong Fo) Nos Zi Zhi Fa 114, 113, . 238, 237, 115, 259, and 995 502, which 996, the provides of conclusion execution the procedure the of 10 abovementioned cases accordance in with .law the	the of Effect cases involving Greencool Companies cases on profits net the to attributable shareholders of the was Company approximately RMB 100,000,000.	4 ,today at As cases involving Greencool Companies remain in of process the .execution

Directors the of Report

company the by held companies listed other in Shareholdings .IV

Stock	Stock code abbreviation	Initial investment cost RMB( (thousand ten	Shareholding percentage the in (%) company	Carrying at amount end the period the of RMB( (thousand ten	and Profit the for loss Reporting Period RMB( (thousand ten	Changes ownership in interests the for Reporting Period RMB( (thousand ten
000404	Huayi Compressor	2,417.14	3.74	7,566.37	602.97	628.22

the ,result a As .shares additional of issuance targeted a conducted Compressor Huayi ,Period Reporting the During investment equity of disposal from income investment an and ,diluted was Company the by held percentage shareholding .recognized was million 23.3354RMB of

period reporting the during subsidiaries of disposal and Acquisition .V

applicable Not □ Applicable√

of Name company	Purpose for acquisition and disposal of subsidiaries during the Reporting Period	of Means acquisition and disposal of subsidiaries during the Reporting Period	Effect the on overall production results and
Guangdong Hisense Refrigerator Marketing Holdings Limited	Separate incorporation of refrigerator marketing .company	Newly up set	For benefits the the of independent audit appraisal , and incentive of the refrigerator business of line the .Company
Qingdao Hisense -Air Conditioner Marketing Holdings Limited	Separate incorporation of -air conditioner marketing .company	Newly up set	For benefits the the of independent audit appraisal , and incentive of -air the conditioner business of line the .Company

Directors the of Report

guarantees of Particulars .VI

							Unit ten RMB :	thousand
The guaranteed party	External Date disclosure of relevant of announcement in relation limit the to the on guaranteed amount	guarantee by given on Limit guaranteed amount	Company the Actual effective of date (date (agreement	excluding ( Actual guaranteed amount	guarantees its for of Type guarantee	(subsidiaries of Period guarantee	Completed not or	the Whether is guarantee any for given connected party
Nil	—	—	—		— —	—	—	—
limit Total amount the on Reporting the (1A (Period	external of guarantees approved	during		12,000	amount Actual Reporting	external of guarantees (2A (Period	the during	0
limit Total amount the on of end the at Reporting the	external of guarantees has which (3A (Period	approved been		Total 12,000	of balance of end the at	amount actual Reporting the	external of guarantees (4A (Period	0

subsidiaries its for Company the by given Guarantees

The guaranteed party	of Date of disclosure relevant announcement relation in limit the to the on guaranteed amount	Guaranteed amount	Actual effective of date (date (agreement	Actual guaranteed amount	of Type guarantee	of Period guarantee	Completed not or	the Whether is guarantee any for given connected party
Guangdong Refrigerator	November 30 2011	90,000	2012.11.21	19.89	liability Joint ;guarantee mortgage	2012.11.21- 2013.01.30	Yes	No
Guangdong Refrigerator	November 30 2011	90,000	2013.03.13	19.89	liability Joint guarantee	2013.03.13- 2014.01.31	No	No
Guangdong Refrigerator	November 30 2011	90,000	2012.10.10	25.02	liability Joint guarantee	2012.10.10- 2014.02.02	No	No
Guangdong Refrigerator	November 30 2011	90,000	2012.11.15	28.56	liability Joint guarantee	2012.11.15- 2013.05.21	Yes	No
Guangdong Air conditioner-	November 30 2011	30,000	2012.10.12	38.46	liability Joint guarantee	2012.10.12- 2013.08.30	Yes	No
Guangdong Air conditioner-	November 30 2011	30,000	2012.10.31	1,862.34	liability Joint guarantee	2012.10.31- 2013.11.08	Yes	No
Guangdong Air conditioner-	November 30 2011	30,000	2013.11.29	39.08	liability Joint guarantee	2013.11.29- 2014.08.30	No	No
Guangdong Air conditioner-	November 30 2011	30,000	2013.11.26	160.00	liability Joint guarantee	2013.11.26- 2014.04.08	No	No
Guangdong Air conditioner-	November 30 2011	30,000	2012.08.21	11,279.61	liability Joint guarantee	2012.08.21- 2013.09.26	Yes	No
Guangdong Air conditioner-	November 30 2011	30,000	2012.11.27	2,228.70	liability Joint guarantee	2012.11.27- 2014.02.23	No	No
Fittings Kelon	November 30 2011	5,000	2012.10.15	98.55	liability Joint ;guarantee mortgage	2012.10.15- 2013.08.30	Yes	No
Fittings Kelon	November 30 2011	5,000	2013.12.20	130.41	liability Joint guarantee	2013.12.20- 2014.08.30	No	No
Guangdong Freezer	November 30 2011	5,000	2013.04.02	115.77	liability Joint ;guarantee	2013.04.02- 2013.06.21	Yes	No

mortgage

The guaranteed party	of Date of disclosure relevant announcement relation in limit the to the on guaranteed amount	Guaranteed amount	Actual effective of date (date (agreement	Actual guaranteed amount	of Type guarantee	of Period guarantee	Completed not or	the Whether is guarantee any for given connected party
Yangzhou Refrigerator	November 30 2011	10,000	2010.07.23	1,209.21	liability Joint guarantee	2010.07.23- 2013.12.16	Yes	No
Yangzhou Refrigerator	November 30 2011	10,000	2013.05.14	267.49	liability Joint guarantee	2013.05.14- 2014.02.05	No	No
on limit Total of amount the during Reporting the	for guarantees subsidiaries (1B (Period	approved	198,000	Actual of amount (2B (Period	for guarantees	subsidiaries during	Reporting the	17,522.98
on limit Total of amount the approved of end the at	for guarantees subsidiaries Reporting the (3B (Period	which been has	198,000	balance Total of end the	actual of of amount Reporting the	for guarantees (4B (Period	at subsidiaries	2,870.59
	Total guaranteed	of amount	Company the	being ( the of sum the	two previous	(items major
limit Total amount the on Period (1B1+A (	guarantees of approved during	Reporting the	210,000	amount Actual (2B2+A(	guarantees of	during Reporting the	Period	17,522.98
limit Total amount the on of end Reporting the Period	guarantees of has which (3B3+A (	approved been the at	210,000	balance Total Reporting	actual of of amount Period (4B4+A (	at guarantees	the of end the	2,870.59
of Proportion amount actual :Including	guarantees of being (	the to) 4B4+A of assets net	Company the					04% 1.
Guaranteed amount for provided	shareholders beneficial ,	controlling parties	their and	connected (C (parties				0
Guaranteed amount provided	or directly for indirectly	guaranteed the	with party ratio gearing	(D (70% over				2,558.19
Total guaranteed over amount	the of 50% (E (asset net							0
the of Sum three above	guarantees (E+D+C (							2,558.19
Statement possibility on	assume to liabilities joint	guarantees for have which	expired not					Nil
Description provision of	external of guarantee violation in	prescribed of	procedures					Nil

subsidiaries its for Company the by given Guarantees

investment Derivatives .VII

(thousand ten in (RMB :Unit

of Name of operators derivatives investment	Connection	Whether a not or connected transaction	of Type derivatives investment	Initial of investment derivatives investment	Effective Date	Expiry Date	at Investment beginning the period the of	of Amount for provision impairment (any if(	at Investment the of end the period	Proportion investment of net the to the of asset at Company of end the Reporting the (%) Period	amount Actual and profit of loss the during Reporting Period
Bank No	No		foreign Forward exchange contracts	199,816.46	January 1 2013	December 31 2013	199,816.46		278,543.31	34 101.	7,575.01
Source	derivatives of investment	funding								Export	payment trade
Litigation	involved ) applicable if (										applicable Not
the of Date	announcement	disclosing approval the	derivatives of	the by investment	) any if (Board						2013 March 29

Risk analysis of positions in derivatives the during Reporting Period and explanations risk of control measures including( not but limited market to risk liquidity , risk credit , ,risk operation legal ,risk (.etc risk	The derivatives business the of Company mainly represents the forward foreign exchange contracts to used the avoid of risk foreign exchange fluctuations related the to overseas sales receivables The . Company determines a reasonable of range foreign exchange to rates achieve the hedging .purpose
	The Company has formulated "the Management Measures the for Foreign Exchange Capital " Business the "and Internal Control System for Forward Foreign Exchange Capital Transactions The ." measures specifically regulate basic the principles , operation rules risk , control measures and internal controls that be shall followed when engaging the in business of foreign exchange derivatives respect In actual of business management the , Company manages the derivatives business before during , and the after operation based the on management measures the for derivatives .business
Changes market in price product or fair of value invested derivatives during the Reporting Period where , specific methods and relevant assumptions and parameters used be shall disclosed in the analysis of derivatives ' value fair	The assessment the of value fair the of derivatives carried out the by Company mainly represents the outstanding foreign exchange forward contracts entered into the by Company banks and which , are recognized as transactional financial or assets liabilities based the on difference between the quotation the of outstanding foreign exchange forward contracts and the forward exchange rate the at as of end period the During . the Reporting Period the , Company recognized on gain a change in value fair the of derivatives RMB of 56,596,300, investment gain amounted RMB to 19,153,800, resulting total a in profits losses or RMB of 75,750,100.
Explanations any of significant changes the in Company s' accounting policies and specific accounting and auditing principles on derivatives between the Reporting Period and last the reporting period	During the Reporting Period there , no were material changes the in accounting policy and specific accounting and auditing principles the for Company s' derivatives business as compared last to reporting .period
Specific opinions of independent Directors the on derivatives investment risk and control the of Company	Opinion of independent directors : Commencement of foreign exchange derivatives business the by Company was beneficial the to Company the in prevention of exchange rate fluctuation The .risks Company has devised the Internal Control System for Forward Foreign Exchange Capital Transactions to strengthen internal control and enhance the management of foreign exchange risks the by Company the and , targeted risk control measures adopted were practicable

year last report financial to compared as consolidation of scope in changes of Description .VIII

:subsidiaries consolidated Newly

• Marketing Refrigerator established newly ,Period Reporting the During :company marketing Refrigerator) 1( .consolidation of scope the in included was Company
• Marketing Conditioner-Air established newly ,Period Reporting the During :company marketing conditioner-Air) 2( .consolidation of scope the in included was Company
• During :")Research Europe Hisense ("GmbH Center Development &Research) Europe (Appliance Home Hisense) 3( .consolidation of scope the in included was Research Europe Hisense established newly ,Period Reporting the

Chinese the and English the between conflict any is there If .Chinese and English both in published is report This .prevail shall version Chinese the ,versions

DEFINITIONS

:meanings following the have shall expressions or terms following the ,otherwise requires context the unless ,report the In

Company" the "," Company "	Hisense Kelon Electrical Holdings Company Limited
Hisense" -Air Conditioning "	Qingdao Hisense -Air Conditioning Company Limited
Hisense" " Electric	Hisense Electric .Ltd .,Co
Hisense" " Group	Hisense Company Limited
Hisense" " Hitachi	Qingdao Hisense Hitachi -Air Conditioning Systems .Ltd .,Co
-Hisense" Whirlpool "	-Hisense Whirlpool Zhejiang ( Electric) Appliances .Ltd .,Co
Hisense" " Finance	Hisense Finance Company Limited
" " Embraco	Beijing Embraco Snowflake Compressor .Ltd .,Co
" Snowflake "	Beijing Snowflake Electrical Appliance Group Corporation
Hisense" Marketing "	Qingdao Hisense International Marketing Holdings .Ltd .,Co
Beijing" Refrigerator "	Hisense Beijing ( Electric) Company Limited
" Shandong Refrigerator "	(Hisense Shandong ) Refrigerator Company Limited
Hisense" Hong " Kong	Hisense Hong ( ) Kong Company Limited
" Guangdong Greencool "	Guangdong Greencool Enterprise Development Company Limited
" Greencool Companies "	Guangdong Greencool other and related parties
" Guangdong Refrigerator "	Hisense (Ronshen Guangdong ) Refrigerator .Ltd .,Co
" Guangdong -Air Conditioner "	Guangdong Kelon -Air Conditioner .Ltd .,Co
Kelon" " Fittings	Guangdong Kelon Fittings .Ltd .,Co
" Guangdong " Freezer	Hisense (Ronshen Guangdong Freezer) .Ltd .,Co
" Yangzhou Refrigerator "	Hisense (Ronshen Yangzhou ) Refrigerator .Ltd .,Co
Kelon" " Mould	Guangdong Kelon Mould Company Limited
Ronshen" " Plastic	Foshan Shunde District Ronshen Plastic .Ltd .,Co
Huayi" Compressor "	Huayi Compressor Company Limited
Foshan" Intermediate " Court	Intermediate People Court s' Foshan of City
" RMB"	Renminbi
Hong" Kong Stock Exchange "	Stock The Exchange Hong of Kong Limited

:Shareholders Dear

faithfully has Limited Company Holdings Electrical Kelon Hisense of Committee Supervisory the ,period reporting the During relevant the with compliance in shareholders and staff its ,Company the of interests lawful the protect to duties its discharged Listing the Governing Rules the ,Exchange Stock Shenzhen of Rules Listing the ,PRC the of Law Company the of requirements like would We .Company the of association of articles the and Limited Kong Hong of Exchange Stock The on Securities of the of association of articles the with accordance in 2013 during Committee Supervisory the of work the you to report to :Company

period reporting the during committee supervisory the of Work .I

:follows as summarized ,meetings 6 of total a held Committee Supervisory the ,period reporting the During

• at 2013, March 28 on held was 2013 in Committee Supervisory the of session eighth the of meeting first The) 1( ;approved and considered were matters related and Company the of report annual 2012 the which
• at 2013, April 25 on held was 2013 in Committee Supervisory the of session eighth the of meeting second The) 2( ;approved and considered was Company the of report quarterly first 2013 the which
• at 2013, August 27 on held was 2013 in Committee Supervisory the of session eighth the of meeting third The) 3( ;approved and considered were matters related and Company the of report interim 2013 the which
• 2013, October 18 on held was 2013 in Committee Supervisory the of session eighth the of meeting fourth The) 4( share first the under granted be to quantity and participants the of adjustment the on resolution the which at exercisable with participants the of verification the on opinion the and Company the of scheme incentive option were Company the of scheme incentive option share first the of period exercise first the during options share ;approved and considered
• at 2013, October 29 on held was 2013 in Committee Supervisory the of session eighth the of meeting fifth The) 5( ;approved and considered was Company the of report quarterly third 2013 the which
• 2013, November 21 on held was 2013 in Committee Supervisory the of session eighth the of meeting sixth The) 6( the of office the from Yan Jiang Liu .Ms and Cun Qing Guo .Mr of resignation the on resolutions the which at Gao .Ms and Shun Zhen Liu .Mr of nomination the and Company the of supervisors representative shareholder Supervisory the of session eighth the of supervisors representative shareholder the of candidates as Ling Yu .passed and considered were Company the of Committee

of matters relevant on committee supervisory the of opinions independent .II 2013 in company the

law with compliance in Company the of Operation) 1(

the and ,systems management various its perfect to continued Company the ,period reporting the During and motions the ,procedures convening The .law with compliance in were processes making-decision s'Company the with complied all meetings board and meetings general' shareholders s'Company the of procedures voting the senior and directors The .Company the of association of articles the of requirements the and regulations and laws 'shareholders the of resolutions implemented conscientiously and ,responsible and diligent were management of articles or regulations ,laws the of violation in acted not have and ,meetings board and meetings general the in duties their of execution the during interests s'Company the prejudiced or Company the of association .Company

situation financial s'Company the of Examination) 2(

issued and 2013 year the for statement financial s'Company the audited has Accountants Public Certified Ruihua opinion the that view the of is Committee Supervisory The .opinion unqualified standard with report s'auditor an reflected truthfully has statement financial current the and objective and fair was report s'auditor the in expressed .Company the of results operating and condition financial of state the

• raising capital by funded were which investments any made not had Company the ,period reporting the During) 3( .activities
• neither was There .reasonable were assets s'Company the of disposal for prices the ,period reporting the During) 4( .Company the of assets the of loss any or interests' shareholders the to prejudice any nor dealing insider any
• parties connected with into entered Company the which transactions connected the ,period reporting the During) 5( .Company the and shareholders connectednon any of interests the prejudicing without determined fairly were prices the and reasonable and fair were
• report assessment control internal s'Company the on Committee Supervisory s'Company the of Opinion) 6(

of is Committee Supervisory s'Company the ,Report assessment Control Internal 2013 s'Company the reviewing After :that view the

the of Guidelines the and Control Internal Enterprise for Norms Basic of requirements relevant the to reference With s'Company the ,Board Main the on Listed Companies of Operation Standardized the for Exchange Stock Shenzhen are ,operation s'Company the of segments and levels all cover and sound basically are systems control internal existing s'Company the of needs actual the suit and ,regulations and laws relevant the of requirements the with compliance in different the of control effective relatively exert to able is systems control internal the of Each .activities operating in errors possible rectifying and discovering timely ,preventing of capable is and ,operation s'Company the in segments s'Company the of completeness and safety the protecting ,risks relevant the controlling ,process operation s'Company the The .information accounting and records accounting the of timeliness and accuracy ,truthfulness the ensuring ,assets control internal actual the reflected truly and objectively ,fully has Report assessment Control Internal 2013 s'Company of board the by Report assessment Control Internal 2013 the of issue the to agree we and ,Company the of situation .Company the of directors

CHINA IN OFFICE REGISTERED

,Shunde ,Ronggui ,Road Ronggang 8 .No ,Province Guangdong ,Foshan .China of Republic s'People The

KONG HONG IN BUSINESS OF PLACE

3101-3105, Room ,Centre Commercial Singga ,West Road Connaught 148 No Kong Hong

DIRECTORS OF BOARD THE FOR SECRETARY SECRETARY COMPANY&

Feng Xia :Directors of Board the for Secretary Fong Tak Wong :Secretary Company

REPRESENTATIVES AUTHORIZED

Guo Ye Tang Lin Jian Xiao

CENTRE COMMUNICATION INVESTOR

Limited Registrars Kong Hong ,Center Hopewell ,Floor th17 .Kong Hong ,Wanchai ,East Road s'Queen 183

TELEPHONE

5622 2593 (852) 2570 2836 (86-757)

FAX

8085 2802 (852) 1055 2836 (86-757)

ADDRESS EMAIL

hk.com.gdkelon@kelon com.hisense@kelonsec

WEBSITE INTERNET

com.kelon.www://http

AUDITORS

Accountants Public Certified Ruihua 2, Tower ,F3-4/ ,Road Xisihuanzhong .16No PRC ,Beijing ,District Haidian

ADVISERS LEGAL

:China Firm Law Guardian Guangdong ,Plaza City Yuexiu ,Tower North ,F26/ Guangzhou ,Central Road Dongfeng 445

:Kong Hong

Shum & Kwong ,Fung ,Sit ,Landmark The ,House York .,F9/ Kong Hong ,Central Road s'Queen 15

CHINA IN BANKERS

China of Bank Commercial and Industrial The China of Bank Communications of Bank China of Bank Agricultural Bank Development Guangdong Bank Commercial Rural Shunde

KONG HONG IN BANKERS

Branch Kong Hong ,Bank Zealand New & Australia .Ltd .,Co) Kong Hong (China of Bank Limited Corporation Banking Shanghai and Hongkong The

95020001 [2014] Zi Shen Hua Rui

:Limited Company Holdings Electrical Kelon Hisense of shareholders the To

Limited Company Holdings Electrical Kelon Hisense of statements financial accompanying the audited have We 31 at as sheets balance s'Company the and consolidated the comprise which ,")Kelon Hisense "or" Company "the( cash consolidated and s'Company the ,statements income consolidated and s'Company the and 2013, December the to notes the and 2013 for equity in changes of statements consolidated and s'Company the and statements flows .statements financial

STATEMENTS FINANCIAL THE FOR RESPONSIBILITY S'MANAGEMENT .I

financial these of presentation fair and preparation the for responsible is Kelon Hisense of Management Accounting with accordance in statements financial the preparing) 1 (:includes responsibility This .statements ,designing) 2; (statements financial the of presentation fair achieve to Enterprises Business for Standards free are statements financial the that enable to necessary is that control internal maintaining and implementing .error or fraud to due whether ,misstatement material from

RESPONSIBILITY S'AUDITOR .II

We .audit our on based statements financial these on opinion audit an express to is responsibility Our that require Auditing on Standards China .Auditing on Standards China with accordance in audit our conducted audit the perform and plan and Accountants Public Certified Chinese for Ethics of Code the with comply we .misstatement material from free are statements financial the whether about assurance reasonable obtain to

in disclosures and amounts the about evidence audit obtain to procedures audit performing involves audit An assessment the including ,judgment s'auditor the on depend selected procedures The .statements financial the making In .error or fraud to due whether ,statements financial the of misstatement material of risks the of and preparation s'entity the to relevant control internal the considers auditor the ,assessments risk those the in appropriate are that procedures audit design to order in statements financial of presentation fair the and used policies accounting of appropriateness the evaluating includes also audit An .circumstances of presentation overall the evaluating as well as ,management by made estimates accounting of reasonableness .statements financial the

our for basis a provide to appropriate and sufficient is obtained have we evidence audit the that believe We .opinion audit

Opinion Audit .III

Company the of statements financial the ,matters above the of effects possible the from apart ,opinion our In December 31 at as position financial consolidated and s'Company the ,aspects material all in ,fairly present in ended then year the for flows cash and operations of results consolidated and s'Company the and 2013 .Enterprises Business for Standards Accounting with accordance

Qing Jia Hu :Accountant Public Certified Chinese) LLP (Accountants Public Certified Ruihua

Lei Sun :Accountant Public Certified Chinese China of Republic s'People the ,Beijing

2014 March 27

Sheets Balance Consolidated

2013 December 31

Prepared by Hisense : Kelon Electrical Holdings Company Limited	Unit RMB :
Item	Closing balance	Opening Balance
Current :assets
at Cash and bank hand on	473,787,177.54	516,065,467.96
Financial assets for-held trading-	67,115,019.35	10,678,293.47
Notes receivable	2,160,801,733.50	1,558,766,192.61
Accounts receivable	1,644,771,822.27	1,455,882,205.49
Prepayments	352,903,571.02	304,301,601.58
Interests receivable
Dividends receivable
Other receivables	546,337,496.66	342,722,165.14
Inventories	2,496,359,854.46	1,738,441,110.15
Non current- assets within due year one
Other current assets	5,306,649.45	3,309,064.74
Total current assets	7,747,383,324.25	5,930,166,101.14
Non current- :assets
Available sale-for- financial assets
to-Held maturity- investments
Long term- receivables
term-Long equity investments	997,500,673.77	751,925,728.90
Investment properties	33,946,307.75	36,446,602.09
Fixed assets	2,368,500,692.73	1,909,832,448.93
Construction in progress	253,977,558.18	68,344,253.58
Construction materials
Disposal fixed of assets
Productive biological assets
and Oil assets gas
Intangible assets	521,782,817.81	495,496,878.49
Development costs
Goodwill
term-Long prepaid expenses	5,001,055.07	827,939.58
Deferred assets tax	36,616,861.02	7,294,688.02
non Other current- assets
non Total current- assets	4,217,325,966.33	3,270,168,539.59
Total assets	11,964,709,290.58	9,200,334,640.73

Sheets Balance Consolidated

2013 December 31

Item	Closing balance	Opening Balance
Current :liabilities
Short term- borrowings	191,681,513.02	30,309,453.94
Financial liabilities for-held trading-	4,645.00	164,231.22
Notes payable	1,391,098,638.68	1,432,852,210.08
Accounts payable	3,480,510,368.16	2,335,425,936.47
Advances from customers	907,031,506.85	837,065,771.59
Employee remunerations payable	236,343,013.69	223,662,684.56
Taxes payable	) 156,766,531.00	) ( 48,994,818.36 (
Interests payable		202,930.49
Dividends payable	9,002,067.02	2,067.02
Other payables	1,731,259,054.40	1,581,294,492.81
Non current- liabilities within due year one
Other current liabilities	574,037,292.42	566,406,795.92
Total current liabilities	8,364,201,568.24	6,958,391,755.74
Non current- :liabilities
Long term- borrowings
Bonds payable
term-Long payables
Specific payables
Provisions	361,158,229.87	311,862,482.54
Deferred tax liabilities
non Other current- liabilities	56,011,769.90	56,872,390.49
non Total current- liabilities	417,169,999.77	368,734,873.03
Total liabilities	8,781,371,568.01	7,327,126,628.77
Shareholders :equity'
Share capital	1,354,054,750.00	1,354,054,750.00
Capital reserve	2,099,105,600.77	2,101,650,386.96
Less Treasury : shares
Special reserves
Surplus reserves	145,189,526.48	145,189,526.48
General risk provisions
Retained profits	) 860,386,951.24	) ( 2,099,392,002.85 (
Difference on translation foreign of currency financial
statements	10,768,154.82	10,539,505.90
Total equity attributable to shareholders of parent the	2,748,731,080.83	1,512,042,166.49
Minority interests	434,606,641.74	361,165,845.47
Total shareholders equity'	3,183,337,722.57	1,873,208,011.96
Total liabilities and shareholders equity'	11,964,709,290.58	9,200,334,640.73
Legal representative Tang : Guo Ye Chief financial officer Jun Li :	Accounting supervisor	Yan : Yong Zhi

Statement Income Consolidated

2013 year the For

RMB :Unit Limited Company Holdings Electrical Kelon Hisense :by Prepared

Item for Amount period current for Amount period previous 18,958,915,310.09 24,360,021,308.47 revenue operating Total .I 18,958,915,310.09 24,360,021,308.47 revenue Operating :Including 18,591,936,414.70 23,538,198,019.35 costs operating Total .II 15,034,033,516.68 19,039,837,900.27 costs Operating :Including 105,218,703.08 99,639,534.69 surcharges and taxes Business 2,731,894,401.50 3,678,122,171.15 expenses distribution and Selling 640,893,526.75 814,452,637.11 expenses administrative and General 38,999,591.86 (27,474,387.27) expenses Financial 40,896,674.83 (66,379,836.60) assets on losses Impairment value fair in changes from Gain :Add (16,637,512.22) 56,596,312.10 ("–" by denoted Loss( 335,254,433.67 347,025,064.55 ("–" by denoted Loss (income Investment and associates of profit of Share :Including 190,097,006.83 299,785,829.53 entities controlled jointly 685,595,816.84 1,225,444,665.77 ("–" by denoted Loss (profits Operating .III 64,651,884.85 114,840,364.46 income operating-Non :Add 7,393,693.62 17,536,717.20 expenses operating-Non :Less current-non of disposal on Loss :Including 2,711,055.26 11,713,968.79 assets 742,854,008.07 1,322,748,313.03 ("–" by denoted loss Total (profit Total .IV 10,548,434.72 53,618,940.95 expenses tax Income :Less 732,305,573.35 1,269,129,372.08 ("–" by denoted loss Net (profits Net .V 717,764,680.40 1,239,005,051.61 parent the of shareholders to attributable profits Net 14,540,892.95 30,124,320.47 interests minority of loss and Profit :share per Earnings .VI 0.53 0.92 share per earnings Basic) 1( 0.53 0.92 share per earnings Diluted) 2( (15,494,563.24) (3,817,685.27) income comprehensive Other .VII upon loss and profit into reclassified be to Items) 1( accounting subsequent in requirements of satisfaction 104,911.35 481,112.87 periods in loss and profit into reclassified be to not Items) 2( (15,599,474.59) (4,298,798.14) periods accounting subsequent 716,811,010.11 1,265,311,686.81 income comprehensive Total .VIII shareholders to attributable income comprehensive Total 702,270,117.16 1,235,187,366.34 parent the of minority to attributable income comprehensive Total 14,540,892.95 30,124,320.47 interests

Yong Zhi Yan :supervisor Accounting Jun Li :officer financial Chief Guo Ye Tang :representative Legal

Statement Flows Cash Consolidated

2013 year the For

Prepared by Hisense : Kelon Electrical Holdings Company Limited		Unit RMB :
Item	Amount for current period	Amount for previous period
I Cash . flows from operating :activities
Cash received from of sales and goods rendering of
services	12,720,006,814.03	9,072,544,890.41
Tax rebates received	680,222,674.80	684,127,212.61
Other cash received concerning operating activities	1,163,188,431.87	677,063,467.75
Subtotal cash of inflows from operating activities	14,563,417,920.70	10,433,735,570.77
Cash for paid purchases of commodities and of receipt
services	8,442,872,755.59	5,062,047,166.06
paid Cash for and to employees	2,136,796,995.31	1,540,550,623.47
Cash for paid and taxes surcharges	952,876,720.89	669,911,064.46
paid Cash other for operating activities	2,812,073,099.38	2,063,033,938.65
Subtotal cash of outflows from operating activities	14,344,619,571.17	9,335,542,792.64
cash Net flows from operating activities	218,798,349.53	1,098,192,778.13
II Cash . flows from investing :activities
Cash received from returns on investments	73,500,000.00	49,000,000.00
Cash received from investment income	4,750,000.00	3,800,000.00
cash Net received from disposals fixed of ,assets intangible
assets other and term-long assets	14,909,409.58	1,432,470.09
cash Net received from disposals of subsidiaries other and
operation units		69,034,178.70
Cash received relating other to investing activities
Subtotal cash of inflows from investing activities	93,159,409.58	123,266,648.79
Cash for paid acquisition and construction fixed of ,assets
intangible assets other and term-long assets	565,717,025.69	163,238,148.25
Cash for paid investments
Cash for paid acquiring subsidiaries other and operation
units
paid Cash relating other to investing activities
Subtotal cash of outflows from investing activities	565,717,025.69	163,238,148.25
cash Net flows from investing activities	) 472,557,616.11	) ( 39,971,499.46 (

Statement Flows Cash Consolidated

2013 year the For

Item		Amount for current period	Amount for previous period
III	Cash . flows from financing :activities
	Cash received from capital contribution	67,210,551.74
	Including Cash : contribution from minority shareholders '
	investment by subsidiaries
	Cash received from borrowings	406,785,264.38	1,767,206,418.19
	Cash received issue from bonds of
	Cash received relating other to financing activities
Subtotal	cash of inflows from financing activities	473,995,816.12	1,767,206,418.19
	Cash for paid repayment of borrowings	244,645,738.20	2,671,252,062.37
	Cash for paid distribution of dividends or profit , interest
	expenses	15,790,611.76	37,329,177.94
	Including Dividend : profit and to paid minority
	shareholders by subsidiaries
	paid Cash relating other to financing activities
Subtotal	cash of outflows from financing activities	260,436,349.96	2,708,581,240.31
cash Net	flows from financing activities	213,559,466.16	) 941,374,822.12 (
.IV	Effects foreign of exchange rate changes on and cash
	cash equivalents	) 474,398.57 (
N	et .V increase cash in cash and equivalents	) 40,674,198.99	( 116,846,456.55
	Add Balance : cash of cash and equivalents the at
	beginning of period the	513,661,376.53	396,814,919.98
.VI	alance B cash of cash and equivalents end the at the of
	period	472,987,177.54	513,661,376.53

Yong Zhi Yan :supervisor Accounting Jun Li :officer financial Chief Guo Ye Tang :representative Legal

Equity' Owners in Changes of Statement Consolidated

2013 year the For

Prepared by	Hisense :	Kelon Electrical	Holdings	Company	Limited					Unit RMB :
				Attributable owners the to	Amount Company the of	period current for
Item	capital Share	reserve Capital	:Less shares Treasury	reserves Special	reserves Surplus	risk General provisions	profits Retained	Other	interests Minority	Total 'shareholders equity
of balance Closing .I year previous in Changes :Add policies accounting for Correction previous in error period Other	1,354,054,750.00	2,101,650,386.96			145,189,526.48		(2,099,392,002.85)	10,539,505.90	361,165,845.47	1,873,208,011.96
II of balance Opening . year the in Movements .III year current the	1,354,054,750.00	2,101,650,386.96			145,189,526.48		(2,099,392,002.85)	10,539,505.90	361,165,845.47	1,873,208,011.96
in denoted Decreases( ("–" Profit Net) 1(		2,544,786.19)	(				1,239,005,051.61 1,239,005,051.61	228,648.92	73,440,796.27 30,124,320.47	1,310,129,710.61 1,269,129,372.08
) 2( comprehensive Other income		(4,046,334.19)						228,648.92		(3,817,685.27)
Subtotal (2) and) 1 (of above Shareholder) 3(		4,046,334.19)	(				1,239,005,051.61	228,648.92	30,124,320.47	1,265,311,686.81
and contributions reductions capital Shareholder 1. contributions 2. based-share of Amount in included payment		1,501,548.00							67,193,000.00 67,193,000.00	68,694,548.00 67,193,000.00
equity' shareholders Other 3. distribution Profit) 4( to Appropriations 1. reserve surplus Appropriations 2. general to provisions risk		1,501,548.00							(23,876,524.20)	1,501,548.00 (23,876,524.20)
to Distribution 3. shareholders Other 4. of Transfer) 5( equity' shareholders 1. or (capital to Transfer from) capital share reserve capital 2. or (capital to Transfer from) capital share reserve surplus for reserves Surplus 3. losses up making Other 4. reserves Special) 6( during Provided 1. period the 2. period the during Used Other) 7(									(23,876,524.20)	(23,876,524.20)
Closing .IV the for balance period	1,354,054,750.00	2,099,105,600.77			145,189,526.48		(860,386,951.24)	10,768,154.82	434,606,641.74	3,183,337,722.57

Equity' Owners in Changes of Statement Consolidated

2013 year the For

Prepared by Hisense : Kelon Electrical Holdings Company Limited Unit RMB :
				Attributable owners the to	Amount Company the of	year previous for				Total
Item	capital Share	reserve Capital	:Less shares Treasury	reserves Special	reserves Surplus	risk General provisions	profits Retained	Other	interests Minority	'shareholders equity
of balance Closing .I year previous in Changes :Add policies accounting for Correction previous in error period Other	1,354,054,750.00	2,096,929,058.26			145,189,526.48		(2,817,156,683.25)	26,106,945.84	355,691,277.10	1,160,814,874.43
II of balance Opening . year the in Movements .III year current the	1,354,054,750.00	2,096,929,058.26			145,189,526.48		(2,817,156,683.25)	26,106,945.84	355,691,277.10	1,160,814,874.43
in denoted Decreases( ("–" Profit Net) 1(		4,721,328.70					717,764,680.40 717,764,680.40	(15,567,439.94)	5,474,568.37 14,540,892.95	712,393,137.53 732,305,573.35
) 2( comprehensive Other income		72,876.70						(15,567,439.94)		(15,494,563.24)
Subtotal (2) and) 1 (of above Shareholder) 3(		72,876.70					717,764,680.40	(15,567,439.94)	14,540,892.95	716,811,010.11
and contributions reductions capital Shareholder 1. contributions 2. based-share of Amount		4,648,452.00								4,648,452.00
in included payment equity' shareholders		4,648,452.00								4,648,452.00
Other 3. distribution Profit) 4( to Appropriations 1. reserve surplus Appropriations 2. general to provisions risk									(9,066,324.58)	(9,066,324.58)
to Distribution 3. shareholders Other 4. of Transfer) 5( equity' shareholders 1. or (capital to Transfer from) capital share reserve capital 2. or (capital to Transfer from) capital share reserve surplus for reserves Surplus 3. losses up making Other 4. reserves Special) 6( during Provided 1. period the 2. period the during Used Other) 7(									(9,066,324.58)	(9,066,324.58)
Closing .IV the for balance period	1,354,054,750.00	2,101,650,386.96			145,189,526.48		(2,099,392,002.85)	10,539,505.90	361,165,845.47	1,873,208,011.96

Yong Zhi Yan :supervisor Accounting Jun Li :officer financial Chief Guo Ye Tang :representative Legal

Sheet Balance

2013 December 31

Prepared by Hisense : Kelon Electrical Holdings Company Limited		Unit RMB :
Item	Closing balance	Opening Balance
Current :assets
at Cash and bank hand on	194,913,820.28	342,912,430.57
Financial assets for-held trading-
Notes receivable	2,027,916,069.94	1,488,240,456.12
Accounts receivable	670,881,711.22	654,198,358.60
Prepayments	833,406,962.27	119,788,776.75
Interests receivable
Dividends receivable	11,000,000.00
Other receivables	1,045,453,070.00	1,020,581,138.05
Inventories	1,722,669,777.53	1,101,946,998.54
Non current- assets within due year one
Other current assets	4,868,222.10	2,787,913.86
Total current assets	6,511,109,633.34	4,730,456,072.49
Non current- :assets Available sale-for- financial assets to-Held maturity- investments
Long term- receivables
term-Long equity investments	3,535,519,488.35	3,114,944,543.47
Investment properties	13,834,076.00	15,218,337.00
Fixed assets	170,557,944.23	184,855,845.67
Construction in progress	255,384.60	6,298,205.16
Construction materials
Disposal fixed of assets
Productive biological assets
and Oil assets gas
Intangible assets	219,910,990.00	227,144,140.00
Development expenses
Goodwill
term-Long prepaid expenses
Deferred assets tax
non Other current- assets
non Total current- assets	3,940,077,883.18	3,548,461,071.30
Total assets	10,451,187,516.52	8,278,917,143.79

Sheet Balance

2013 December 31

Item	Closing balance	Opening Balance
Current :liabilities
Short term- borrowings
Financial liabilities for-held trading-
Notes payable	1,424,477,630.22	1,393,993,081.39
Accounts payable	2,661,630,607.61	1,454,062,384.08
Advance receipts	789,669,536.98	757,121,873.57
Staff remuneration payables	100,022,496.03	110,455,624.85
Taxes payable	) 87,337,346.80	( 6,815,013.66
Interests payable
Dividends payable
Other payables	1,931,424,623.14	1,488,361,520.58
Non current- liabilities within due year one
Other current liabilities	427,144,578.22	462,020,126.95
Total current liabilities	7,247,032,125.40	5,672,829,625.08
Non current- :liabilities
Long term- borrowings
Bonds payable
term-Long payables
Special payables
Provisions	361,158,229.87	307,754,994.01
Deferred tax liabilities
non Other current- liabilities	34,760,406.21	38,150,435.08
non Total current- liabilities	395,918,636.08	345,905,429.09
Total liabilities	7,642,950,761.48	6,018,735,054.17
Shareholders :equity'
Share capital	1,354,054,750.00	1,354,054,750.00
Capital reserve	2,223,601,333.16	2,226,146,119.35
Less Treasury : shares
Special reserves
Surplus reserves	114,580,901.49	114,580,901.49
General risk provisions
Retained profits	) 884,000,229.61	) ( 1,434,599,681.22 (
Total shareholders equity'	2,808,236,755.04	2,260,182,089.62
Total liabilities and shareholders equity'	10,451,187,516.52	8,278,917,143.79

Yong Zhi Yan :supervisor Accounting Jun Li :officer financial Chief Guo Ye Tang :representative Legal

Statement Income

2013 year the For

RMB :Unit Limited Company Holdings Electrical Kelon Hisense :by Prepared

Item		Amount for current period	Amount for previous period
.I O	perating revenue	15,423,216,361.55	13,406,348,502.57
	:Less Operating costs	12,121,678,413.48	10,778,043,429.66
	Business and taxes surcharges	57,959,862.64	48,003,078.26
	Selling and distribution expenses	2,977,239,232.30	2,312,048,959.91
	General and administrative expenses	47,475,414.09	52,155,934.46
	Financial expenses	14,707,486.54	8,572,096.98
	Impairment losses assets on	13,221,334.10	33,546,203.90
	Gain :Add from in changes value fair Loss ( denoted by ("–"
	Investment income Loss ( denoted ("–" by	367,201,297.27	127,802,268.55
	Including of Share : of profit associates and jointly
	controlled entities	299,785,829.53	190,097,006.83
.II O	perating profits Loss ( denoted ("–" by	558,135,915.67	301,781,067.95
	Non :Add operating- income	4,723,672.17	37,041,171.92
	Non :Less operating- expenses	5,110,460.03	2,217,915.16
	Including on Loss : disposal non of current- assets	147,301.11	145,147.14
III T	otal . (profit loss Total denoted ("–" by	557,749,127.81	336,604,324.71
	Less Income : tax expenses	7,149,676.20
N	et .IV profits loss Net ( denoted ("–" by	550,599,451.61	336,604,324.71
.V	Other comprehensive income	) 4,046,334.19 (	72,876.70
	( Items) 1 be to reclassified into profit loss and upon satisfaction of requirements in subsequent accounting
	periods	252,463.95	72,876.70
	) 2( not Items be to reclassified into and profit in loss
	subsequent accounting periods	) 4,298,798.14 (
VI	Total . comprehensive income	546,553,117.42	336,677,201.41

Yong Zhi Yan :supervisor Accounting Jun Li :officer financial Chief Guo Ye Tang :representative Legal

Statement Flows Cash

2013 year the For

Prepared	by Hisense : Kelon Electrical Holdings Company Limited		Unit RMB :
Item		Amount for current period	Amount for previous period
I	Cash . flows from operating :activities
	Cash received from of sales and goods rendering of
	services	5,547,186,231.84	2,620,167,621.02
	Tax rebates received Other cash received concerning operating activities	16,125.89 4,649,456,072.35	1,962,021,636.97
	Subtotal cash of inflows from operating activities	10,196,658,430.08	4,582,189,257.99
	Cash for paid purchases of commodities and of receipt
	services	7,080,037,287.04	2,358,939,977.91
	paid Cash for and to employees	898,357,768.42	611,506,622.07
	Cash for paid and taxes surcharges	570,313,096.58	439,157,935.98
	paid Cash other for operating activities Subtotal cash of outflows from operating activities	1,722,281,355.59 10,270,989,507.63	555,972,068.25 3,965,576,604.21
	cash Net flows from operating activities	) 74,331,077.55	( 616,612,653.78
II	Cash . flows from investing :activities
	Cash received from returns on investments	73,500,000.00	49,000,000.00
	Cash received from investment income	33,080,018.20	15,826,368.60
	cash Net received from disposals fixed of ,assets intangible
	assets other and term-long assets	247,851.86	344,159.29
	cash Net received from disposals of subsidiaries other and operation units		26,784,178.70
	Cash received relating other to investing activities
	Subtotal cash of inflows from investing activities	106,827,870.06	91,954,706.59
	Cash for paid acquisition fixed of ,assets intangible assets
	other and term-long assets	5,495,402.80	6,315,137.14
	Cash for paid investments paid Cash relating other to investing activities	175,000,000.00	100,000,000.00
	Subtotal cash of outflows from investing activities	180,495,402.80	106,315,137.14
	cash Net flows from investing activities	) 73,667,532.74	) ( 14,360,430.55 (
III	Cash . flows from financing :activities
	Cash received from capital contribution
	Cash received from borrowings		70,000,000.00
	Cash received issue from bonds of Cash received relating other to financing activities
	Subtotal cash of inflows from financing activities		70,000,000.00
	Cash for paid repayment of borrowings		420,000,000.00
	Cash for paid distribution of dividends or profit , interest
	expenses		8,209,572.50
	paid Cash relating other to financing activities Subtotal cash of outflows from financing activities		428,209,572.50
	cash Net flows from financing activities	)	358,209,572.50 (
.IV	Effects foreign of exchange rate changes on and cash cash equivalents
N	et .V increase cash in cash and equivalents Add Balance : cash of cash and equivalents the at	) 147,998,610.29	( 244,042,650.73
	beginning of period the	342,912,430.57	98,869,779.84
.VI B	alance cash of cash and equivalents end the at the of
	period	194,913,820.28	342,912,430.57
Legal	representative Tang : Guo Ye Chief financial officer Jun Li :	Accounting supervisor	Yan : Yong Zhi

Equity' Owners in Changes of Statement

2013 year the For

RMB :Unit Limited Company Holdings Electrical Kelon Hisense :by Prepared

	Amount period current for
			:Less			risk General		Total 'shareholders
Item	capital Share	reserve Capital	shares Treasury	reserves Special	reserves Surplus	provisions	profits Retained	equity
balance Closing .I previous of
year	1,354,054,750.00	2,226,146,119.35			114,580,901.49		(1,434,599,681.22)	2,260,182,089.62
Changes :Add accounting in
policies
Correction in error for
period previous
Other
Opening .II the of balance
year	1,354,054,750.00	2,226,146,119.35			114,580,901.49		(1,434,599,681.22)	2,260,182,089.62
Movements .III current the in
Decreases (year denoted
("–" in		(2,544,786.19)					550,599,451.61	548,054,665.42
Profit Net) 1(							550,599,451.61	550,599,451.61
Other) 2( comprehensive
income		(4,046,334.19)						(4,046,334.19)
of Subtotal above) 2 (and) 1 (		(4,046,334.19)					550,599,451.61	546,553,117.42
Shareholder) 3( contributions
and reductions capital Shareholder 1. contributions		1,501,548.00						1,501,548.00
Amount 2. based-share of
payment in included
equity' owners		1,501,548.00						1,501,548.00
Other 3.
) 4( distribution Profit
Appropriations 1. surplus to
reserve
Appropriations 2. general to
provisions risk
Distribution 3. shareholders to
Other 4.
Transfer) 5( 'shareholders of
equity
1. capital to Transfer
or( from) capital share
reserve capital
Transfer 2. share or (capital to
capital surplus from)
reserve
reserves Surplus 3. making for
losses up
Other 4.
( reserves Special) 6
Provided 1. period the during
Used 2. period the during
Other) 7(
Closing .IV the for balance
period	1,354,054,750.00	2,223,601,333.16			114,580,901.49		(884,000,229.61)	2,808,236,755.04

Equity' Owners in Changes of Statement

2013 year the For

RMB :Unit Limited Company Holdings Electrical Kelon Hisense :by Prepared

		for Amount year previous
Item	capital Share	reserve Capital	:Less shares Treasury	reserves Special	reserves Surplus	risk General provisions	profits Retained	Total 'shareholders equity
Closing .I of balance previous year in Changes :Add accounting policies Correction error for in period previous Other	1,354,054,750.00	2,251,104,411.10			114,580,901.49		) 1,771,204,005.93	( 1,948,536,056.66
Opening .II the of balance year Movements .III the in	1,354,054,750.00	2,251,104,411.10			114,580,901.49		) 1,771,204,005.93	( 1,948,536,056.66
current Decreases (year ("–" in denoted Profit Net) 1( Other) 2( comprehensive		(24,958,291.75)					336,604,324.71 336,604,324.71	311,646,032.96 336,604,324.71
income Subtotal (2) and) 1 (of		72,876.70						72,876.70
above Shareholder) 3( contributions and capital reductions Shareholder 1. contributions		72,876.70 4,648,452.00					336,604,324.71	336,677,201.41 4,648,452.00
Amount 2. based-share of payment in included equity' owners Other 3.		4,648,452.00						4,648,452.00
Profit) 4( distribution Appropriations 1. surplus to reserve Appropriations 2. general to provisions risk 3. to Distribution shareholders
Other 4. of Transfer) 5( shareholders equity' Transfer 1. capital to share or( from) capital reserve capital Transfer 2. or (capital to
share from) capital reserve surplus Surplus 3. for reserves losses up making
Other 4. ) 6( reserves Special Provided 1. the during period
Used 2. period the during Other) 7(		(29,679,620.45)						(29,679,620.45)
Closing .IV the for balance period	1,354,054,750.00	2,226,146,119.35			114,580,901.49		) 1,434,599,681.22	( 2,260,182,089.62

Yong Zhi Yan :supervisor Accounting Jun Li :officer financial Chief Guo Ye Tang :representative Legal

(RMB in denominated are amounts ,stated expressly otherwise Unless(

Profile Company 1.

formerly was") Company "the as to referred hereinafter (Limited Company Holdings Electrical Kelon Hisense the After 1984. in established) 廣東順德珠江冰箱廠 (factory River Pearl Shunde Guangdong as known Guangdong as renamed was Company the 1992, December in company limited stock joint a into restructuring shares public listed overseas 459,589,808 s'Company The .Limited Company Holdings Electrical Kelon the 1998, In 1996. July 23 on Limited Kong Hong of Exchange Stock The on listed were") Shares H "the( the on listed were which ,")Shares A "the (shares domestic 110,000,000 issue to approval obtained Company 1999. July 13 on Exchange Stock Shenzhen

Kelon Guangdong ,Company the of shareholder largest single former the 2002, March and 2001 October In 34.06% held previously ,"Group Ronshen "as to referred hereinafter (Limited Company Group) Ronshen( Shunde with agreement supplementary a and agreement transfer share a into entered) Company the in interest Enterprises Greencool Guangdong "as renamed was it (Limited Company Development Enterprise Greencool connection in ,")Greencool Guangdong "as to referred hereinafter 2004, in Limited Company Development Ronshen by Greencool Guangdong to Company the of capital share total the of 20.64% of transfer the with total the of 5.79% and 0.71% 6.92%, of shareholding its transferred Group Ronshen 2002, April In .Group Development Heng Dong Shunde ,Company Consultancy Economic Shunde to Company the of capital share longer no ,Company the of shareholder largest single former the ,Group Ronshen ,transfers share mentionedabove the After .respectively ,Limited Company Enterprise Hong Xin Shunde and Limited Company .Company the of shares held

Enterprise Hong Xin Shunde by held Company the of capital share total the of 5.79% 2004, October 14 On of percentage the ,transfer share the of completion Upon .Greencool Guangdong to transferred was Company 26.43%. to increased Greencool Guangdong by held Company the of capital share total

Greencool Guangdong by held Company the of capital share total the of 26.43% 2006, December 13 On Company Conditioning-Air Hisense Qingdao to transferred were Limited Company Development Enterprises ,Greencool Guangdong ,transfer share the of completion Upon .")Conditioning-Air Hisense Qingdao ("Limited .Company the of shares held long no ,Company the of shareholder largest single former the

and 2007 January 29 on meeting' shareholders A the on approved was scheme reform share s'Company The 2008, Since .scheme the after 23.63% to changed was ,Company the of shareholder largest the ,Conditioning-Air Hisense Qingdao of shareholding The 2007. March 22 on PRC Commerce of Ministry the by approved through Company the of shareholding the increased successively has Conditioning Air Hisense Qingdao share total the of 25.22% held Conditioning Air Hisense Qingdao 2009, of end the At .market secondary .Company the of capital

Holdings Electrical Kelon Guangdong "from changed was Company the of name the 2007, June 20 On ."Limited Company Holdings Electrical Kelon Hisense "to" Limited Company

2009, August 31 on held Company the of meeting interim fourth the of resolutions the with accordance In Letter "2010 March 23 dated Commission Regulatory Securities China of approval the by approved as and Holdings Electrical Kelon Hisense of Restructuring Asset Major the for Approval the Concerning Reply of the Concerning Reply of Letter the and ,)"329 .No] 2010 [Ke Xu Jian Zheng (Limited Company Conditioning-Air Hisense Qingdao to Shares of Issuance through Assets of Acquisition the and Limited Company Acquisition the of Limited Company Conditioning-Air Hisense Qingdao by Announcement the for Approval Obligation Offer General its of Waiver the and Limited Company Holdings Electrical Kelon Hisense of Report Renminbi 362,048,187 issue to was Company the that approved was it ,)330 .No] 2010 [Ke Xu Jian Zheng( the for consideration as ,)object specific a as (conditioning-Air Hisense Qingdao to) shares A (shares ordinary interests equity 51% .,Ltd .,Co Conditioner-Air) Shandong (Hisense in interests equity 100% of acquisition .,Co Electrical) Beijing (Hisense in interests equity 55% ,")Hitachi Hisense (".Ltd .,Co Systems Conditioning-Air Hitachi Hisense Qingdao in interests equity 49% .,Ltd .,Co Conditioner-Air) Zhejiang (Hisense in businesses marketing goods white the and .Ltd .,Co Mould Hisense Qingdao in interests equity 78.70% .,Ltd Hisense (".Ltd .,Co Marketing Hisense Qingdao of airconditioners and refrigerators including assets and .("Marketing

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (Profile Company 1.

issue) share A (share of way by assets of acquisition the to relation in transaction connected the 2010, In 362,048,187 of additional an issued Company the and ,completed was party specific a to Company the by 10 on listed were shares new The .offering seasoned under conditioning-Air Hisense Qingdao to shares A to 992,006,563.00RMB from changed Company the of capital registered the 2010, June 30 On 2010. June 1,354,054,750.00.RMB

Conditioning Air Hisense Qingdao by held Company the of shares A restricted 612,221,909 2013, June 18 On .trading for listed were and moratorium selling to subject longer no were

registered the and 1,354,054,750.00 was Company the of shares of number total the 2013, December 31 at As by held Company the of shareholding the ,which of 1,354,054,750.00,RMB was Company the of capital share 45.22%. was Conditioning-Air Hisense Qingdao

of Scope operations the of :Company	Manufacture sales and businesses of refrigerators -air , conditioners home and appliances
of Place registration the of :Company	8 .No Ronggang Road Ronggui , Shunde , ,Foshan , Guangdong .Province
Address of headquarters :	8 .No Ronggang Road Ronggui , Shunde , ,Foshan , Guangdong .Province

statementS financial of preparation of Basis 2.

for Standards Accounting the with accordance in prepared were statements financial These Business for Standards Accounting the and (Finance of Ministry the by issued Enterprises Business these in adopted early were 2014 in Finance of Ministry the by issued amendments and Enterprises the under requirements disclosure the and ,)details for 4.27 note to refer Please .statements financial .No Public the to Securities Offering Companies by Disclosure Information of Convention Preparation Regulatory Securities China the by issued) 2010 revised (Reporting Financial on Provisions General – 15 .Commission

relevant the from apart ,exchanges stock Kong Hong and Mainland both on listed is Company the As the of provisions disclosure applicable with comply also statements financial the ,above mentioned regulations disclosure the and Limited Kong Hong of Exchange Stock The on Securities of Listing the Governing Rules .Ordinance Companies Kong Hong the of requirements

Business for Standards Accounting the with compliance of Statement 3. Enterprises

Standards Accounting the of requirements the with comply Company the by prepared statements financial The in changes ,results operating ,state financial the reflects completely and truly and Enterprises Business for .Company the of information related other and flows cash ,equity' shareholders

ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

period Accounting 1.

.December 31 on ends and January 1 on starts ,year calendar the on based is period accounting The

currency Reporting 2.

.currency reporting the as Company the by adopted was) RMB (Renminbi

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

under not and common under entities involving combinations business for treatments Accounting 3. control common

control common under entities involving combinations Business) 1(

method Interest of Polling the by for accounted is control common under combination Business the ,policies accounting in differences to due necessary adjustments from Apart .Company the by the at measured be shall combination business in acquirer the by acquired liabilities and assets carrying the between difference The .combination of date the on acquiree the of value carrying paid consideration the of value carrying the and acquirer the by acquired assets net the of value capital the in adjusted be shall) shares issued the of value nominal total or (combination for is balance excess the ,difference the absorb to sufficient not is reserve capital the If .reserve .earnings retained against adjusted

,legal ,auditing incurred the ,acquirer the is Company the which in combinations business For the to charged are fees management related and fees agency other and consulting and appraisal and commissions ,fees Handling .incurred are they which in period the during loss or profit business to relation in committed liabilities other or bonds of issuance for paid expenses other liabilities other and bonds the of value measuring initial the to charged be shall combination in securities equity of issuance for paid expenses other and commissions ,fees Handling .issued and securities equity from premium the against offset be shall combination business to relation against adjusted be shall balance excess the ,premium by offset be cannot amount such whereas .earnings retained

control common under not entities involving combination Business) 2(

by method acquisition the by for accounted is control common under not combination Business assets cash-non or cash the of value fair the represents acquisition of cost The .Company the date the at as Company the by issued securities equity and committed or issued liabilities ,paid business For .acquiree the in power controlling the acquiring for consideration in acquisition of and appraisal ,legal ,auditing incurred the ,acquirer the is Company the which in combinations loss or profit the to charged are fees management related and fees agency other and consulting of issuance the to related fees transaction the; incurred are they which in period the during the to charged are combination business of consideration the as securities bond or shares equity .issued securities bond or shares equity of value measuring initial

business a in acquirer the by obtained assets net identifiable and combination of cost The the of cost the Where .date acquisition the at value fair at measured are combination as recognized is difference the ,assets net identifiable s'acquirer the exceeds combination of value fair the in interest s'acquirer the than lower is combination of cost the where; goodwill current the for loss or profit in recognized is difference the ,assets net identifiable s'acquiree the .year

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

statements financial consolidated of Preparation 4.

consolidation of scope of recognition the for Criteria) 1(

financial the comprise statements financial consolidated the ,control of concept the on Based controlled entities individual including (subsidiaries its of all and Company the of statements risk the to entitlement or of share ,investee the over power the to refers Control .)parent the by returns of amount the affect to ability the and ,returns variable of reward of rights or exposure .power its using by

the during control common under combination business through acquired subsidiary a For of year the of beginning the from subsidiary the consolidates Company the ,period reporting business through acquired subsidiary a for; year reporting this of end the to consolidation date the from subsidiary the consolidates Company the ,control common under not combination reporting the during disposed subsidiary a For .year reporting this of end the to acquisition of .disposal of date the from subsidiary the consolidate to ceases Company the ,period

statements financial consolidated of Preparation) 2(

statements financial on based statements financial consolidated the prepares Company The consolidated the preparing In .information relevant other and subsidiaries its and own its of ,entity accounting single a as group business entire the treats Company the ,statements financial with accordance in flows cash and results operating ,position financial overall the reflects and accounting relevant the of presentation and measurements ,recognition on requirements the .policies accounting unified to pursuant enterprises business for standards

from differ subsidiaries the by adopted period accounting and policies accounting the Where accounting own s'Company the on based made are adjustments necessary ,Company the of those and consolidation of scope the within companies between matters or transactions and ,policies The; statements financial consolidated the of preparation the in offset are liabilities internal interests minority as recognised are parent the to attributable not equity s'subsidiary a of portion ;statements financial consolidated the of equity' shareholders the under separately presented and subsidiary a of shareholders minority to attributable period current the for loss the case in of beginning the at subsidiary the in equity' owners of s'portion interest minority the exceeds .interests minority the against offset be shall difference the ,period the

equivalents cash and cash of recognition the for Criteria 5.

deposits ,hand on cash comprise equivalents cash and cash ,statement flows cash the of purpose the For and) acquisition of date the from months 3 within maturing (term-short and bank with call at held an to subject and cash of amounts known to convertible readily are that investments liquid highly .value in changes of risk insignificant

currency foreign in statements financial of translation and transactions currency Foreign 6.

transactions currency Foreign) 1(

exchange spot the using currency functional the into translated are transactions currency Foreign .transaction the of date the at prevailing rate

functional the into translated are items monetary currency foreign ,date sheet balance the at As difference translation ,date sheet balance the at prevailing rate exchange spot the using currency date sheet balance the at prevailing rate exchange spot the between difference a from arising date sheet balance previous the or recognition initial at prevailing rate exchange spot the and translated are value fair at items monetary-non currency foreign; costs finance to charged is difference resulting the and ,determined value fair of date the at rate exchange spot the using relevant the that except ,value fair in changes as period the for loss or profit the to charged is is which assets financial sale for available currency foreign from arising difference translation .reserve capital the to charged

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

currency foreign in statements financial of translation and transactions currency Foreign 6. (continued(

currency foreign in statements financial of Translation) 2(

all ,currency foreign in denominated subsidiary a of statements financial of translation the For on rates exchange spot the at translated are sheet balance the in items liabilities and assets the undistributed "than other items the ,items equity' shareholders the Among .date sheet balance the and income The .dates transaction the of rates exchange spot the at translated are" profits at prevailing rate exchange spot the using translated are statement income the in items expense exchange spot the using translated are statement flows cash the in items all; date transaction the approximating rate a or incurred is flow cash relevant the which on date the at prevailing rate separately is cash on rate exchange the in changes of effect The .rate exchange spot the the in" equivalents cash and cash on changes rate exchanges foreign of Effect "as presented .statement flows cash

separately are statements financial currency foreign of translation the from arising Differences under" statements financial currency foreign of translation on Difference "as out set .sheet balance consolidated the in" equity' Shareholders"

translation currency foreign of difference corresponding the ,operations overseas of disposal On or profit the to equity' shareholders from transferred be shall operations overseas the to related difference translation the ,operations overseas disposed partially For .period current the for loss loss or profit the in recognized and basis rata-pro on calculated are statements financial the of .period current the for

instruments Financial 7.

financial a and entity one of asset financial a to rise gives that contract represents instrument Financial ,assets financial of consist instruments Financial .entity another of instrument equity or liability .instruments equity and liabilities financial

liabilities financial and assets financial of derecognition and Recognition) 1(

the to party a becomes it when liability financial a or asset financial a recognizes Group The .instrument financial a of provisions contractual

:met are conditions following the when asset financial a derecognizes Group The

• ;expired have asset financial the from flows cash receive to rights contractual The①
• the for conditions following the and transferred been has asset financial The② .met are assets financial of derecognition

financial the of obligations existing the when derecognized is it of part or liability financial A .discharged partially or fully are liability

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(instruments Financial 7.

liabilities financial and assets financial of measurement and Classification) 2(

management the ,management risk of requirements and characteristics business own its on Based initial at ,are borne liabilities financial or assets financial the classifies Company the of liabilities financial or assets financial :categories five following the into classified ,recognition liabilities financial and assets financial as recognition initial upon designated those and tradingfor-held liabilities financial and assets financial including (loss or profit through value fair at ,receivables and loans ,investments maturity-to-held); loss or profit through value fair at financial or asset financial A .liabilities financial other and assets financial sale-for-available liabilities financial or assets financial of case the In .value fair at initially recognized is liability the in recognized directly are costs transaction relevant the ,loss or profit through value fair at financial or assets financial to relating costs transaction; period current the for loss or profit .amount recognized initial their in included are categories other of liabilities

current the for loss or profit through value fair at liabilities financial or assets Financial 1 period

value fair at assets financial as recognition initial upon designated those and tradingfor-held assets financial include loss or profit through value fair at assets Financial ,bonds ,shares to refer mainly trading-for-held assets Financial .loss or profit through financial or term-short the in disposal for held derivatives hedging-non and funds financial or assets financial; term-short the in purchase-re for assumed liabilities period current the for loss or profit the through value fair at ones as designated liabilities strategic ,management risk for Company the by designated so those to refer mainly .purposes other and investment

Except .value fair at measured are liabilities financial or assets financial of kind Such on losses or gains unrealized and realized all ,derivatives effective as used are they when the for loss or profit the in recognized are liabilities financial and assets financial these .period current

investments maturity-to-Held 2

sovereignty as such assets financial derivative-non are investments maturity-to-Held determinable or fixed has that rates floating at bonds company and rate fixed at bonds and intention positive the has Company the which for and maturity fixed and payments .maturity to hold to ability

after (value fair the of sum the at recognized initially are investments maturity-to-Held the and) yet charged not but matured has period whose interests bond of deduction .Company the by fees transactions related

effective the using measured are investments maturity-to-held ,period holding the During from arising losses or Gains .cost amoritized of basis the on method rate interest the for loss or profit the in recognized are derecognition or impairment ,amortization .period current

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(instruments Financial 7.

(continued (liabilities financial and assets financial of measurement and Classification) 2(

Receivables and Loans 3

the by caused assets financial another or cash receive to right the to refer Receivables ,Company the by customers external to services labor of provision the and goods of sale ,markets active in quoted instruments debt except companies other in receivables and Receivables .receivables term-long and receivables other ,receivables accounts including agreed the or buyers the to charged price contract the at recognized initially are cost amortized at measured are receivables ,period holding the During .consideration sale the between difference the ,disposal Upon .method rate interest effective the using the of loss or profit into accounted be shall receivables the of value book the and value .disposal or recovery its on period current

assets financial sale-for-Available 4

are that assets financial derivative-non to refer assets financial sale-for-Available classified not assets financial and recognition initial upon sale for available as designated .above described as assets financial of categories three other the as

value fair the of sum the at recognized initially are assets financial sale-for-Available bond or distributed not but declared been has which dividends cash of deduction after( the by fees transactions related the and) yet received not but due were which interests .Company

premium The .value fair at measured subsequently are assets financial sale-for-Available interest as recognized and method rate interest effective using amortized is discount or ,reserve capital in income comprehensive other as recognized is asset financial sale-foravailable an of value fair the in change a from arising loss or gain A .expense or income monetary from resulted losses or gains exchange foreign and losses impairment for except at ,impaired be to determined or derecognized is asset financial the until ,assets financial profit the to transferred is recognized previously loss or gain cumulative the time which sale-for-available an to relating dividends and Interests .period current the for loss or .period current the for loss or profit the in recognized are asset financial

of value carrying the and consideration acquisition between difference the ,disposal Upon accumulated the and ,losses and profits investment as recognized be shall assets financial the from transferred time same the at be shall disposal the from value fair in changes .losses and profits investment to equity' shareholders

liabilities financial Other 5

values fair their at measured not liabilities financial to refer liabilities financial Other .period current the of loss or profit the into accounted not is which of variation the and

and value fair the of sum the at recognized initially are liabilities financial Other are liabilities financial other ,period holding the During .expenses transaction relevant upon losses or Gains .method rate interest effective the using cost amortized at measured .period current the of loss or profit into accounted are derecognition or amortization

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(instruments Financial 7.

assets financial of Transfer) 3(

• the all substantially transferred has Group the when derecognized are assets Financial 1 and risks substantial the when or transferee the to ownership their of rewards and risks the ceases Group the but retained nor transferred neither are ownership their of rewards .assets financial the over control
• not or termination the judging in adopted is" Form over Substance "of principle The 2 into divided also is assets financial of transfer The .assets financial recognizing of satisfies asset financial entire an of transfer the If .transfer partial and transfer entire 2 following the of amounts the between difference the ,derecognition for conditions the :period current the of losses and profits the in recorded be shall items
• ;asset financial transferred the of amount carrying The .A
• cumulative the and ,transfer the from received consideration aggregate The .B 'shareholders the in recorded originally value fair the of changes the of amount .(asset financial sale-foravailable an is transfer the in involved asset financial the that event the in (equity
• the ,derecognition for conditions the satisfies asset financial partial of transfer the If 3 the between allocated be shall asset financial transferred entire the of amount carrying ,derecognized been not has that portion the and derecognized been has that portion amounts the between difference the and ,values fair relative respective their to according :period current the of losses and profits the in recorded be shall items 2 following the of
• ;derecognized been has that portion the of amount carrying The .A
• the and ,derecognized been has that portion the of consideration aggregate The .B originally value fair the in changes the of amount cumulative the of portion has that portion the to corresponding is which equity' shareholders the in recorded is transfer the in involved asset financial the that event the in (derecognized been .(asset financial sale-for-available an
• the fulfill not does transfer their when recognized be to continue assets Financial 4 financial as recognized are received considerations and ,conditions derecognition .liabilities
• Company the ,involvement continued with transferred being asset financial a For 5 continued its of extent the to transferred being asset financial the recognize to continues .time same the at liability financial a recognizes and ,involvement

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(instruments Financial 7.

liabilities financial derecognizing for Conditions) 4(

,discharged partially or discharged been has liabilities financial of obligations current the If the if; thereof part in or whole in liabilities financial the derecognize shall Company the then replace to liabilities financial new raise to order in creditors with agreement an signs Company substantially are liabilities financial new the of terms the and ,liabilities financial existing the the derecognize shall Company the ,liabilities financial existing the of terms the from different same the at liabilities financial new the recognize to begin and ,liabilities financial existing .time

in or whole in modified substantially been have liabilities financial existing the of terms the If at and ,part in or whole in liabilities financial existing the derecognize shall Company the ,part .one new a as liabilities financial modified the recognize ,time same the

book the between difference the ,part in or whole in liabilities financial the derecognizing On cash-non of out-transfer the including (payment the and liabilities financial existing the of value loss or profit the into accounted be shall) recognized be to liabilities financial new and assets .period current the for

the allocate shall Company the ,liabilities financial the of part repurchases Company the If be to part the and recognized continuously be to part the between liabilities financial entire difference The .repurchasing of date the on values fair their with accordance in derecognized cash-non of out-transfer the including (payment the and value book derecognized the between the for loss and profit into included be shall) recognized be to liabilities financial new or assets .period current

liabilities and assets financial of value fair of Determination) 5(

• price quoted the ,liability financial or asset financial a for market active an is there If 1 financial or asset financial the of value fair the establish to used is market active the in .liability
• using determined is value fair its ,instrument financial a for exists market active no If 2 .techniques valuation appropriate

(receivable accounts excluding (assets financial of Impairment) 6(

(receivable accounts excluding (asset financial every of amount carrying the assesses Group The be may asset financial a indicating evidence objective is there If .date sheet balance the at .impairment the for made is provision a ,impaired

:investments maturity-to-held of provision Impairment 1

and amount carrying the between difference the at measured are provisions Impairment of methods to reference Detailed .flows cash future estimated the of value present the .out carried is receivables of provision impairment for measurement

the and recovered assets financial the of value the that evidence objective is there If such (recognized was impairment the after occurring event an to related be can recovery impairment recognized previously the ,)debtor the of rating credit the in increase an as result not shall reversal the ,However .loss or profit in recognized and reversed is loss have would cost amortized the what exceeds asset financial the of amount carrying a in .reversal of date the at recognized been not loss impairment the had been

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(instruments Financial 7.

(continued) (receivables excluding (assets financial of Impairment) 6(

:assets financial sale-for-available of provision Impairment 2

an of value fair the in decrease prolonged significant a of evidence objective is there If financial sale-for-available the that ascertained be can it ,asset financial sale-for-available provision impairment Upon .made be shall provision impairment and impaired has assets loss cumulative the ,assets financial sale-for-available impaired of respect in made is is equity s'shareholder in directly recognized originally value fair in decline the from acquisition initial the of difference the equals removed loss cumulative The .removed (amortization and payment principal of net (asset financial sale-for-available the of cost .loss or profit the in recognized previously losses impairment less value fair current and

,instrument debt sale-for-available an on recognized been has loss impairment an after If can increase the and period subsequent a in increases instrument debt the of value fair the the ,recognized was loss impairment the after occurring event an to related objectively be For .loss or profit in recognized and reversed is loss impairment recognized previously ,sale-for-available as classified instrument equity an on recognized loss impairment the s'shareholder in reversed is impairment the after occurs that value fair in increase any .loss or profit in not ,equity

receivables Accounts 8.

:provision separate to subject and significant individually are that receivables Accounts) 1(

receivables significant individually for amount and criteria The 1

the except ,receivables accounts total the of) inclusive 10% (above or 10% for Accounts .receivables Greencool

receivables significant individually in debt bad for provision of Method 2

where ,assessment impairment separate to subject are receivables significant Individually future the of value present the of amount the ,impairment of evidence objective is there amount carrying the than less is receivables the from derived be to expected flows cash Where .debts bad for provision as for accounted and loss impairment as treated be shall accounts ,assessment impairment separate the to according in impairment no is there characteristics risk credit similar with groups certain into combined be shall receivables .groups by assessment impairment to subject and

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (receivables Accounts 8.

groups by provision to subject and groups certain into combined are that Receivables) 2(

follows as is groups of determination for Basis

1 Group	of Groups	accounts	receivables	based	ageing on	characteristics

.receivables Greencool 2 Group

groups by debts bad for provision for Method

• .method analysis ageing on Based 1 Group
• value present the of amount the where ,assessment impairment Individual 2 Group less is receivables the from derived be to expected flows cash future the of accounted and loss impairment as treated be shall amount carrying the than .debts bad for provision as for

:analysis age using debts bad for provided are which receivables 1, Group For

	for Ratio provision for
Ageing	bad (%) debts
3 Within (months including (months 3	0
Over months 3 but 6 within (months including (months 6	10
Over months 6 within but (year 1 including (year 1	50
Over year 1	100

:provision separate to subject but insignificant individually are which Receivables) 3(

Reason for individual :provision	Receivables are which individually insignificant in year one .above or
Method for provision for debts bad	Receivables which be shall separated from groups for individual assessment where , is there objective evidence of impairment The . amount the of present of value future the cash flows expected be to derived the from receivables is less the than carrying amount be shall as treated impairment and loss accounted as for provision for .debts bad

Inventories 9.

inventories of Classification) 1(

value-low ,contract processing in goods ,materials raw :into classified are Inventories ,progress in works ,goods finished-semi manufactured-self ,materials packaging ,consumables .etc and goods finished ,transit in goods

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (Inventory 9.

inventories of Cost) 2(

amortized and ,delivery upon cost standard the with accordance in measured are materials Raw to cost standard the adjust to order in differences cost to according month each of end the at .cost actual

upon cost actual the with accordance in measured are goods finished and progress in Works .method average weighted the using determined is cost actual the whereas ,delivery

in declines for provision of method the and value realizable net of determination the for Basis) 3( inventories of value

and ,sale for ready materials ,stocks commodity ,goods finished of value realizable net The price selling estimated the on based determined is ,sales immediate on inventories commodity related and costs distribution and selling estimated the less ,business of course ordinary the in .taxes

of price selling estimated the on based determined is material raw of value realizable net The and completion to costs estimated the less business of course ordinary the in goods finished ;taxes related and ,sale the make to necessary costs estimated

is value realizable net the ,contract labor or contract sales fulfilling for held inventories For order sales of amounts the exceed held inventories of amounts the if; price contract the on based .price market the on based determined is amount excess the ,contract the in specified

adjusts or states and ,period accounting each of end at checkup inventory takes Company The for provision The .value realizable net or cost of lower the at inventories on loss impairment in inventories for; principle in basis individual an on made is inventories on loss impairment inventories on loss impairment for provision ,prices unit low relatively with and quantity large for provision the consolidates Company The .basis aggregated an on determined be shall same the in products of sales and production the to related inventories on loss impairment .separately calculate to difficult and ,purpose and utilization similar or same the with ,region down-write the ,disappear value' inventories the of down-write the causing factors the case In loss or profit the to charged be shall impairment of provision the and reversed be shall amount .period current the for

.system inventories perpetual the adopts group The) 4(

materials packaging and consumables value-low of Amortization) 5(

.issuance upon expensed are consumables value-Low

.issuance upon expensed are materials Packaging

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

investments equity term-Long 10.

recognition Initial) 1(

entities involving combination business from acquired investments equity term-Long 1 control common under

entities involving combination business from acquired investments equity term-long For the of equity' shareholders the of value book the of share the ,control common under the with accordance in adjustments after combination of date the at as enterprise merged .cost investment initial the as taken be shall policies accounting s'Company

not entities involving combination business from acquired investments equity term-Long 2 control common under

entities involving combination business from acquired investments equity term-long For be shall acquisition of date the at as combination of cost the ,control common under not .cost investment initial the as taken

involving not combination business from acquired investments equity term-long For the comprises cost initial the ,stages in achieved and control common under entities before immediately acquiree the in instrument equity held previously of amount carrying .date acquisition the at cost investment additional the and ,date acquisition the

methods other by acquired investment equity term-Long 3

payment making by obtained investment equity term-long a of cost investment initial The .paid cash actual its for accounted be shall cash in

of basis the on obtained investment equity term-long a of cost investment initial The excluding (issued securities equity the of value fair the be shall securities equity issuing .(investee the from received profits or dividends cash paid yet not but declared

be shall investor an of investment equity term-long a of cost investment initial The value unfair the except agreement or contract investment the in stipulated value the .agreement or contract the in stipulated

with characterized is assets monetary-non of exchange the that conditions the Under be can surrendered or received assets the of value fair the and ,essence business of basis on determined is received assets of value book the ,way reliable a in measured higher the for evidences objective are there except ,surrendered assets of value fair the assets monetary-non of exchange the For .received assets of value fair the of reliability taxes related and surrendered assets of value book the ,criteria above the meeting not .received assets of cost as accounted be shall

restructuring debt by obtained investment equity term-long of cost investment initial The .value fair at measured be shall

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (investments equity term-Long 10.

losses and profits of recognition and measurement Subsequent) 2(

influence significant has or control jointly not does Company the when used is method cost The no and ,markets active in quoted not are investments equity term-long the and ,investee the over investments equity term-long for used also is method cost The .value fair measurable reliably significant or control common under investments equity term-Long .subsidiaries the over .method equity by accounted be shall influence

:method cost the by investments equity term-long of accounting Upon

not but declared already profits or dividends cash or paid consideration actual the from Apart returns investment recognizes Company the ,consideration the in included are which paid yet .investee the by declared profits or dividends cash to according

:method equity the by investments equity term-long of accounting Upon

• fair the of share s'investor the exceeds investment equity term-long a of cost initial the If 1 cost initial the ,acquisition of date the at assets net identifiable s'investee the of value term-long a of cost initial the if; adjusted be not may investment equity term-long the of s'investee the of value fair the of share s'investor the than lower is investment equity the in included be shall difference the ,acquisition of date the at assets net identifiable shall investment equity term-long the of cost the and period current the for loss or profit .time same the at adjusted be
• as investee the by made loss or profit net the of share its recognizes Group The 2 .accordingly investment the of amount carrying the adjusts and ,losses or gain investment making after loss or profit net s'investee the of share its recognizes Group The of value fair the on based loss or profit net s'investee the to adjustments appropriate accounting s'Group the and ,date acquisition the at assets identifiable s'investee the but (ratio share its to according associates and ventures joint with transactions groupinter from arising loss or profit the of portion the eliminating and ,periods and policies in recognized be shall transactions group-inter from arising assets for losses impairment .(full
• the that extent the to recognized is investee the of losses net of share s'Group The 3 interests term-long any with together ,investment equity term-long the of amount carrying ,zero to reduced is investee the in investment net its of part form substance in that Subsequent .losses additional assume to obligations incurred has Group the that except its off setting after profits of share as recognized are investee the by realized profits net .losses recognized-un of share
• carrying the reduce investee the by declared dividends cash or profits to Entitlements 4 .investments term-long the of value
• and profit its from arising those than other equity' shareholders the in changes the For 5 the that provided ,reserve capital in directly records Company the ,investee the of loss .unchanged remains investee in shareholding of proportion s'Group

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (investments equity term-Long 10.

investees the over influence significant and control joint of Definition) 3(

:control common for Evidences 1

.activity economic an over control of sharing agreed contractually the is control Joint ,production and financial significant ,venture joint a of establishment the upon Generally unanimous the require venture joint the of procedures making-decision and operating following the by evidenced is control Common .control sharing parties the of consent :bases three

• the of activities operating and production the control shall parties the of None .A .basis sole a on venture joint
• requires venture joint the of operation fundamental the to related making-Decision .B .parties venture joint the of consent unanimous the
• of one appoint agreement or contract of way by may parties venture joint The .C of activities ordinary the of management out carry to parties venture joint the the within exercised be shall power management the that given ,venture joint the the by agreed unanimously already scope making-policy and operating ,financial .parties venture joint
• :influence significant for Evidences 2

the on decisions making in participate to power the to refers influence Significant jointly or control to power the not but ,entity an of policies operating and financial Company the When .parties other with policies such of formulation the over control but) 20% including (20% than more owns subsidiary a through indirectly or directly investee the over influence significant ,investee an of rights voting the of 50% than less significant no constitutes situation the that evidence clear is there unless established is financial the on decisions making in participate to unable is Company the as influence of 20% than less owns Company the When .investee the of policies operating and generally is investee the over influence significant ,investee an of rights voting the significant constitutes situation the that evidence clear is there unless established not and financial the on decisions making in participate to able is Company the as influence .investee the of policies operating

impairment for provision of recognition and impairment of Test) 4(

for impairment for provision of recognition and impairment for test the for 4.23 note see Please .associates and ventures joint ,subsidiaries in investments equity term-long

,influence significant or control common under not is investee which investment term-long a For note see please ,measurement value fair reliable no and market active an in price quoted no .impairment for provision of recognition and impairment for test the for) 6(4.7

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

properties Investment 11.

and ,both or appreciation capital or rental earn to held properties the are properties Investment .Company the by out leased been have which buildings represents

basis a on amortized or depreciated are and ,cost the at recognized initially are properties Investment and assets fixed for adopts Group the which policies amortization and depreciation the with consistent .assets intangible

for model cost using properties investment for impairment of recognition for 4.23 note see Please .measurement subsequent

assets Fixed 12.

assets fixed of Recognition) 1(

leasing ,services of rendering ,goods producing for held are that assets tangible are assets Fixed .year accounting one than more life useful with ,purposes administrative or parties other to out :conditions following the meet they when recognized are assets Fixed

• flow will asset fixed the with associated benefits economic the that probable is it When 1 and ,Company the into
• .measured reliably be can asset fixed the of cost The 2

assets fixed of Depreciation) 2(

useful their over method line-straight the using categories by depreciated are assets Fixed are and ,use intended for available are assets fixed the when started are Depreciations .life are that lands and ,use in still are and depreciated fully are that assets fixed except (sale-forheld assets current-non as classified or derecognized are assets fixed the when terminated rates depreciation annual the ,made is provision impairment no When .)separately accounted estimated and ,category asset ,value residual by determined are which assets fixed different for :follows as are life useful

Category	Useful (year (life	of Rate residual (%) value	Annual depreciation rates (%)
Buildings	20-50	0-10	1.8-5
Machinery and equipment	5-20	5-10	4.5-19
Electronic equipment , appliances
and furniture	5-10	5-10	9-19
Motor vehicles	5-10	5-10	9-19
Moulds	3	0	33.33

assets fixed of loss impairment for provision and impairment for Test) 3(

.Company the of assets fixed of impairment of recognition for 4.23 note see Please

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

progress in Construction 13.

progress in construction of Measurement) 1(

individual by for accounted are and cost actual at measured are progress in Constructions .projects

assets fixed to progress in construction from transfer of point-Time) 2(

incurred expenses actual the all when assets fixed to transferred are progress in Constructions use intended its for ready is progress in construction When .use intended their for ready are and cost estimated an using assets fixed to transferred is it ,accounts final the completed not has but to pursuant accordingly made is depreciation and use intended for ready is it when day the on project ,budget project on based be can cost estimated the , policy depreciation s'Company the the after cost actual the by adjusted is cost estimated The .cost construction actual or price .provided already depreciation the to adjustments without accounts final the of completion

progress in construction of loss Impairment) 3(

.progress in construction of impairment of recognition for 4.23 note see Please

costs Borrowing 14.

costs borrowing the of capitalization for recognition of Principles) 1(

inventories ,properties investment ,assets fixed the to refer capitalization for eligible Assets construction and acquisition of time of period long substantially a require that assets other and on interest include costs Borrowing .sale for or use intended its for activity producing or differences exchange and ,costs ancillary ,premiums or discounts of amortization ,borrowings .borrowings currency foreign from arising

the to attributable directly be can Company the by incurred costs borrowing the Where shall it ,capitalization for eligible assets of activities producing or construction and acquisition shall costs borrowing Other .assets relevant of costs the of part as recorded and capitalized be into recorded be shall and ,incurred amount actual the of basis the on expenses as recognized be .period current the for loss or profit the

the at requirements following the meet they unless capitalized be not shall costs borrowing The :time same

• form in expenditures include shall which ,incurred already are asset for expenditures The 1 and acquisition the for paid debts bearing interest or assets cash-non of transfer ,cash of ;capitalization for eligible assets of activities producing or construction
• ;incurred been have costs borrowing The 2
• asset the prepare to necessary activities producing or construction and acquisition The 3 .commenced already have sale or use intended its for

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (costs Borrowing 14.

costs borrowing the of capitalization of Period) 2(

constructed ,acquired being assets qualifying the of cost a as capitalized are costs Borrowing of capitalization the and; sale or use intended its for ready become they until produced or its for ready becomes construction or acquisition under asset the when ceases costs borrowing the for loss or profit in recognized are thereafter incurred costs borrowing the ,use intended .year current

interrupted is asset qualified a of activities producing or construction and acquisition the Where the of capitalization the ,months 3 than more for lasts period interruption the and abnormally asset the for step necessary a be interruption the Should .suspended be shall costs borrowing use intended its for ready become to production or construction under capitalization for qualified the during arising costs Borrowing .capitalised be to continue shall cost borrowing the ,sale or construction the until period the for loss or profit the in recognised be shall period interruption shall costs borrowing the of capitalisation then by and ,resumed is asset the of production or asset of activities producing or construction and acquisition the of part Where .resumed be also of capitalization the ,use separate for available and completed is capitalization for qualified .ceased be shall asset of part that for cost borrowing

costs borrowing capitalized of Calculation) 3(

fixed qualifying a of construction or acquisition the for obtained borrowings specific the For income interest any deducting (capitalization for eligible is which interest of amount the ,asset gain investment any or banks the in borrowings specific unused the depositing from earned in incurred expense ancillary the and) borrowing those of investment temporary the on arising the for ready is asset qualified the until capitalized be shall borrowings specific the to relation .sale or use intended

fixed qualifying a of construction or acquisition the for obtained borrowings general the For the applying by determined is capitalization for eligible is which interest of amount the ,asset average weighted the to ,used borrowings general of rate interest effective average weighted specific of amount the over asset the on expenditures cumulative of amount excess the of weighted the of light in determined and calculated be shall rate capitalization The .borrowings .borrowing general the of rate interest average

be shall premiums or discounts of amount the ,premium or discount any is there Where be shall adjustment an and ,method rate interest real by period accounting each in amortized .period each in interests of amount the to made

a on interest and principal to related differences exchange ,period capitalization the During cost the of part as capitalized are currencies foreign in denominated borrowings purpose specific .assets qualifying the of

asset Intangible 15.

assets intangible of recognition Initial) 1(

of payment the Where .cost actual the on based recognized initially are assets Intangible of is which ,terms credit normal the beyond delayed is assets intangible for price purchase of value current the on based determined be shall assets intangible of cost the ,nature financing .price purchase the

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (asset Intangible 15.

(continued (assets intangible of recognition Initial) 1(

fair the at accounted be shall restructuring debt the through acquired assets intangible The is assets monetary-non of exchange the that conditions the under; assets intangible the of value can surrendered or received assets the of value fair the and ,essence business with characterized the of basis on recognized is received assets of value book the ,way reliable a in measured be of reliability higher the for evidences objective are there except ,surrendered assets of value fair the meeting not assets monetary-non those of exchange the For .received assets of value fair the cost as accounted be shall taxes related and surrendered assets of value book the ,criteria above .loss and profit the in recognized not and received assets of

assets intangible of measurement Subsequent) 2(

assets intangible of life Useful 1

For .acquisition upon determined is assets intangible acquired the of life useful The unit measurement similar or life useful the ,life useful finite a with asset intangible the to benefits economic unforeseeable with assets Intangible .estimated is usage for .life useful indefinite with assets intangible be to deemed are Company

assets intangible of Amortization 2

from life useful estimated the over amortized are life useful finite a with asset Intangible indefinite with assets Intangible .method line-straight the using acquisition of month the the of end the at out carried is impairment for test a but amortized not are life useful .year

and reviewed are assets intangible for amortization of method and life useful The .year each of end the at annually least at adjusted

• benefits economic future any generate longer no to expected is asset intangible an When 3 the into transferred entirely is asset intangible the of value carrying the ,Company the to .period the for loss or profit
• assets intangible of Impairment 4

.assets intangible of impairment of recognition the for 4.23 note see Please

costs Development 16.

• expenditure into project development and research internal an of costs the classifies Group The) 1( .phase development the on expenditure and phase research the on
• internal for phase development and phase research of classification the for criteria Specific) 2( :projects development and research

with out carried are research and investigation planned the which phase the :phase Research .knowledge technical or scientific new understanding and obtaining of purpose

research the which phase the ,utilization and production commercial before :phase Development produce to order in design or project particular a to applied is knowledge other or achievement .etc ,products ,devices ,materials improved substantially or new

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (costs Development 16.

• recognized are projects development and research internal of phase research the on Expenditure) 3( .period current the for loss or profit in
• is projects development and research internal of phase development the on Expenditure) 4( :time same the at satisfied are conditions following the of all if only capitalized
• for available be will it that so asset intangible the complete to feasible technically is It 1 ;sale or use
• ;sell or use to and ,asset intangible the complete to intends Management 2
• or benefits economic generate will assets intangible the how demonstrated be can It 3 internal of case in used be can they that or ,market own its has assets intangible the ;utilization
• development the complete to resources other and financial ,technical adequate are There 4 ;assets intangible the sell or use to ability the and
• be can phase development its during assets intangible to attributable expenditure The 5 .measured reliably

expenses prepaid term-Long 17.

• expenses as recognized be should but incurred expenditures include prepayments term-Long) 1( are prepayments term-Long .periods subsequent and current the in year one than more over .period beneficial expected the over basis line-straight a on amortized
• .incurred as month the in loss or profit in recognized be should expenses operating-Pre) 2(

Provisions 18.

• when recognized are ,etc contracts onerous ,warranties product ,litigation pending for Provision) 1( will benefits economic of outflow an that probable is it ,obligation present a has Company the .reliably measured be can obligation of amount the and ,obligation the settle to required be
• the settle to required expenditure the of estimate best the at measured initially is provision A) 2( uncertainties ,risks the as such ,contingency a surrounding Factors .obligation present related estimate best the reaching in whole a as account into taken are ,money of value time the and is estimate best the ,material is money of value time the of effect the Where .provision a of .outflows cash future related the discounting by determined

instruments equity and payments based-Share 19.

payments based-Share) 1(

Equity .Company the by management senior to granted incentives share settled-Equity .grant of date the at as value fair their by measured are incentives share for used instruments

payments based-share of treatment Accounting) 2(

other (reserve capital and costs to charged are employees to payments share settled-Equity instruments equity the of value fair the at valuated-re are employees to payments share settled-Cash .accounted not are value fair in changes subsequent and ,value fair at) reserve capital .payables remuneration staff and costs as recognized are and date sheet balance each at as

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (instruments equity and payments based-Share 19.

instruments equity of value fair of Determination) 3(

quoted the ,option share as such granted instrument equity an for market active an is there If there If .instrument equity the of value fair the establish to used is market active the in price pricing option the ,option share as such granted instrument equity the for market active no is .value fair the determine to used is model

instruments equity exercisable of value fair of estimate best the for basis Recognition) 4(

equity exercisable of number estimated the ,period vesting the within date sheet balance each On number the in changes to as information subsequent latest the on based amended is instruments exercisable of number final the ,date exercise the at As .rights exercisable with employees of .instruments equity exercisable of number actual the equal should instruments equity

based-share of termination and amendment ,implementation for treatment Accounting) 5( payments

of value fair above the on based calculated is period the for recognizable cost accumulated The the deducting after ,instruments equity exercisable of number estimated and instruments equity .period the for recognizable cost the as ,period previous the for amount recognized

Revenue 20.

goods of Sale) 1(

the :satisfied are conditions following the when recognized is goods of sale the from Revenue the of ownership of rewards and risks significant the buyer the to transferred has Company usually degree the to involvement managerial continuing neither retains Company the; goods the that probable is it; sold goods the over control effective nor ownership with associated be can costs and revenue relevant the; Company the to flow will benefits economic associated .reliably measured

services of Rendering) 2(

be could that services of rendering on transaction a of outcome ,date sheet balance the On Company The .method completion-of-percentage using recognized be shall estimated reliably or received the with accordance in services of rendering from revenue total the determines .unfair is price the when except ,agreement or contract by fixed price purchase receivable

reliably be cannot services of rendering of outcome the where ,date sheet balance the On :follows as out carried is treatment accounting ,estimated

• to recognized be shall revenue the ,recoverable be to expected is incurred cost the If 1 equivalent an and ,recoverable be to expected are that incurred cost the that extent the .cost service as loss or profit to charged is amount
• be shall incurred cost the ,recoverable be to expected not is incurred cost the If 2 services such from revenue no and ,period current the for loss or profit the in recognized .recognized is

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (Revenue 20.

rights use asset of Transfer) 3(

the to flow will transaction the to related benefits economic the that probable is it When as out carried be will treatment the ,measured reliably be can income relevant the and Company :follows

• interest effective and time of length the of basis on determined is income interest The 1 .others the by used is which funds cash s'Company the of rate
• method and time chargeable agreed the of basis on determined is income royalties The 2 .contract or agreement relevant under

grants Government 21.

government related income and grants government related-asset into divided are grants Government .grants

grants government of measurement and Recognition) 1(

the and with complied be can conditions attaching all when recognized are grants Government .received be can grants

the at measured is it ,asset monetary a of transfer a of form the in is grant government a If is it ,determinable reliably not is value fair if; value fair at measured is it ,asset monetarynon a of transfer a of form the in is grants government a If .receivable or received amount .amount nominal a at measured

grants government of treatment Accounting) 2(

evenly and ,income deferred as recognized be shall asset an to related grant government A .asset related the of life useful the over loss or profit to amortized

loss or profit in immediately recognized is amount nominal a at measured grant government A .period current the for

expenses related for compensation a is grant the where ,income to related grant government A recognized be shall grant the ,periods subsequent in enterprise the by incurred be to losses or already losses or expenses related for compensation a is grant the where; income deferred as the in loss or profit in immediately recognized be shall grant the ,enterprise the by incurred .period current

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

liabilities tax deferred/assets tax Deferred 22.

temporary the on based recognized and calculated are liabilities tax deferred and assets tax Deferred balance the at as liabilities and assets the of base tax the and value carrying the between difference or expense tax income as loss or profit s'period current in recognized are tax Deferred .date sheet deferred and combination business a in goodwill for made adjustment the for except ,credits tax income .equity to related directly are that items or transactions from tax

• the where except ,differences temporary taxable all for recognized is liability tax deferred A) 1( :transactions following the from arise differences temporary taxable
• in liability or asset an of recognition initial the or ,goodwill of recognition initial The 1 it ,transaction the of time the at and ,combination business a not is that transaction a ;loss or profit taxable nor profit accounting neither affects
• following the with transactions from arising liabilities or assets of Recognition 2 the of time the at ,and combination business a not is that transaction a :characteristics ;loss or profit taxable nor profit accounting the affects neither ,transaction
• ,subsidiaries in investments with associated differences temporary taxable of respect In 3 the of reversal the of timing the where ,ventures joint in interests and associates differences temporary the that probable is it and controlled be can differences temporary .future foreseeable the in reversed be not will
• tax and losses tax ,differences temporary deductible for recognized only are assets tax Deferred) 2( against future the in available be will profit taxable that probable is it that extent the to ,credits except ,utilized be can credits tax and losses tax ,differences temporary deductible the which :transactions following the from arises asset tax deferred the where
• ,transaction the of time the at ,and combination business a not is that transaction A 1 or; loss or profit taxable nor profit accounting the affects neither
• in investments with associated differences temporary deductible the of respect In 2 only is asset tax deferred a ,associates and entities controlled jointly ,subsidiaries reversed be will differences temporary the that probable is it that extent the to recognized temporary the which against available be will profit taxable and future foreseeable the in .future the in utilized be can differences

tax the at measured are liabilities and assets tax deferred ,date sheet balance the At is liability the or realized is asset the when period the to apply to expected are that rates in manner the from follow would that consequences tax the reflects meanwhile ,settled the settle or assets the recover to ,date sheet balance the at ,expects Company the which .liabilities

it If .date sheet balance the at reviewed be shall assets tax deferred of amount carrying The) 3( tax deferred the of benefit the against offset to income taxable sufficient obtain to unlikely is of amount the ,down written be shall assets tax deferred the of amount carrying the ,assets amount the and ,period current the in expense tax income for accounted be shall down writing originally is tax deferred the if equity s'shareholder in accounted be shall down writing of where reversed subsequently be should down-write such Any .equity s'shareholder in recognized .available be will income taxable sufficient that probable becomes it

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

assets of Impairment 23.

,entities controlled jointly and associates ,subsidiaries in investments equity term-long of Impairment ,progress in construction ,assets fixed ,method cost the by measured subsequently properties investment value fair the by measured properties investment ,inventories except (goodwill ,assets intangible :follows as determined are) assets financial ,assets tax deferred ,method

• at impaired be may asset an that indication any is there if impairment for tested are assets Fixed) 1( amount recoverable the ,impaired be may asset an that exists indication any If .date balance the asset intangible an ,combination business a from arising Goodwill .estimated is asset this of are use intended for ready been not have that assets intangible and life useful indefinite an with indication any is there not or whether of irrespective ,year a once least at impairment for tested .impaired be may assets those that
• its and sell to costs less value fair its of higher the is asset an of amount recoverable The) 2( Provision .asset the from derived be to estimated flows cash future expected the of value present possible not is it If .basis asset individual on recognized and determined is impairment asset for of group a of amount recoverable the ,asset individual the of amount recoverable the estimate to .determined is belongs asset the which to assets
• asset the by generated inflows cash major whether on based is group asset an of Identification) 3( the When .groups asset or assets other from inflows cash the of independent largely are group carrying the ,amount carrying its than less is group asset an or asset an of amount recoverable as treated is amount carrying in reduction The .amount recoverable the to reduced is amount .period current the for loss or profit in recognized and loss impairment
• subsequent in reversed be cannot it ,recognized is assets above the of loss impairment the Once) 4( .periods

benefits Employee 24.

social ,fund welfare ,subsidies ,allowances ,bonuses ,salaries or wages include benefits Employee rendered service for exchange in incurred expenditures other and funds housing ,contributions security .rendered are they which during period the for recognized are and employees by

information Segment 25.

management ,structure organization internal the on based segments operating identifies Group The segments reportable of information segment discloses and ,system reporting internal and requirements .segments operating of basis the on

:conditions following the all satisfies that Group the of component a is segment operating An

• ;activities ordinary its from expenses incur and revenues earn to able is component The) 1(
• decisions make to management s'Group the by reviewed regularly are results operating Whose) 2( and; performance its assess to and segment the to allocated be to resources about
• to available is statement flows cash and results operating ,position financial on Information) 3( significant the with same the are segments operating of policies accounting The .Group the .Company the of policies accounting

directly those include liabilities and assets ,results operating ,expenses ,revenue s'segment operating An ,expenses ,Revenue .basis reasonable a on segment the to allocated those and segment a to attributable of elimination the before amounts the at determined are segment operating of liabilities and assets operating between price Transfer .balances account current group-inter and transactions group-inter .transactions length s'arm of those to similar terms on calculated is segments

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

leases Operating 26.

a on period leasing the over loss or profit in leases operating of rentals the recognises Company The .period the for loss or profit the in for accounted are incurred costs direct Initial .basis line straight

estimates accounting and policies accounting significant in Changes 27.

policies accounting in Changes) 1(

for Standards Accounting "adopted early has Company the ,statements financial these In for Standards Accounting ",)Revised" (Benefits Employee – 9 .No Enterprises Business Accounting ",)Revised" (Statements Financial of Presentation – 30 .No Enterprises Business Standards Accounting ","Measurement Value Fair – 39 .No Enterprises Business for Standards Business for Standards Accounting "and" Arrangements Joint – 40 .No Enterprises Business for of Ministry the by issued) Revised" (Statements Financial Consolidated – 33 .No Enterprises 2014. February and January in Finance

(Revised" (Benefits Employee – 9 .No Enterprises Business for Standards Accounting"

"Benefits Employee – 9 .No Enterprises Business for Standards Accounting "to Pursuant defined and scheme contribution defined as classified are plan benefit retirement ,)Revised( the which in plan benefit retirement a to refers scheme contribution Defined .scheme benefit further to subject longer no are and fund independent an to contributions fixed make enterprises other plan benefit retirement a to refers scheme benefit defined the while; obligations payment employee an which in period accounting the During .scheme contribution defined the than be shall scheme contribution defined under calculated payable amount the ,service provides In .assets in or period current the of loss and profit in recorded and liabilities as recognized method credit unit projected the use shall enterprise the ,scheme benefit defined the of respect defined the from arising obligations the measure to assumptions actuarial appropriate make and the by stipulated formula the using calculated obligations welfare the attribute ,scheme benefit the in obligation the record and ,employee the of period service the to scheme benefit defined or liabilities net the of measurement-re the from arising changes whereas ,loss and profit current .income comprehensive other the in included be shall scheme benefit defined the of assets net employee term-long other and salary term-short the regulates also standard the ,Moreover the of is Company the of management The .employees to enterprises by provided benefits of statements financial the on effect material no had standard the of adoption the that opinion .Company the

"Statements Financial of Presentation – 30 .No Enterprises Business for Standards Accounting" (Revised(

"Statements Financial of Presentation – 30 .No Enterprises Business for Standards Accounting" standard the ,addition In .statements financial of presentation the regulates further) Revised( income the in categories two following the into classified income comprehensive other requires that items) 2; (loss and profit into classified-re subsequently be not will that items) 1 (:statement .conditions specified of satisfaction upon loss and profit into classified-re subsequently be may as statements financial the presented and amendments above the applied has Company The .required

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(estimates accounting and policies accounting significant in Changes 27.

(continued (policies accounting in Changes) 1(

"Measurement Value Fair – 39 .No Enterprises Business for Standards Accounting"

"Measurement Value Fair – 39 .No Enterprises Business for Standards Accounting" value fair of disclosure the and value fair of measurement the for guidance sole the establishes sale the upon receivable price the to refers which ,value fair defines standard The .measurement between transaction orderly an in liability a of transfer the upon payable price the or asset an of extensive more stipulates also standard The .measurement of date the on participants market the of adoption the ,this from Apart .measurement value fair of disclosure the for requirements statement financial of measurement and recognition the on effect material no had standards value fair of disclosure extensive more in resulted has standard the of adoption The .items .year the for Group the of statements financial the in information

"Arrangements Joint – 40 .No Enterprises Business for Standards Accounting"

the regulates" Arrangements Joint – 40 .No Enterprises Business for Standards Accounting" or two by controlled jointly arrangement joint a of treatment accounting and classification on based ventures joint and operations joint into classified are arrangements Joint .parties more arrangement relevant the to parties the by agreed terms contractual ,form legal ,structure the joint a to refers operation Joint .arrangement relevant the of circumstances and facts other and and arrangement the of assets relevant the to entitled are parties joint the which in arrangement in arrangement joint a to refers venture Joint .arrangement the of liabilities relevant the bear .arrangement the of assets net of rights the to entitled only are parties joint the which

accounting subsequent and recognition initial both in differ operation joint and venture Joint a in Interest .method equity the under for accounted is venture joint a in Investment .treatment share the including (assets the in share on based recognition by for accounted is operation joint ,(liabilities accrued jointly any in share the including (liabilities ,)assets owned jointly any in expenses and) operation joint the from generated revenues the in share the including (revenues for accounts parties joint the of Each .)expenses accrued jointly any in share the including( joint the in interests its of respect in expenses and costs ,revenues ,liabilities and assets the of is Company the of management The .standards appropriate the with accordance in operation statements financial the on effect material no had standard the of adoption the that opinion the .Company the of

"Statements Financial Consolidated – 33 .No Enterprises Business for Standards Accounting" (Revised(

Financial Consolidated – 33 .No Enterprises Business for Standards Accounting "the to Pursuant statements financial consolidated the of consolidation of scope the ,)Revised" (Statements elements essential three provided has standard The .control of basis the on recognized be shall exposure risk the to entitlement or of share) b; (investee the over power the) a (:control of the affect to ability the) c (and; returns variable of reward of rights the or returns variable of on guidance extensive included has amendment The .power its using by returns of amount of adoption the that opinion the of is Company the of management The .scenarios complicated .Company the of statements financial the on effect material no had standard the

had standards above the of adoption the that opinion the of is Company the of management The has statements financial These .Company the of statements financial the on effect material no .standards above the with accordance in disclosures made and presented been

Business for Standards Accounting "issued Finance of Ministry the 2014, January 17 On become has which ,")6 .No Interpretation "hereinafter" (6 .No Interpretation Enterprises the that opinion the of is Company the of management The .issue of date the since effective operating and position financial the on effect material no had Interpretation this of effectiveness .Group the of results

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (estimates accounting and policies accounting significant in Changes 27.

estimates accounting in Changes) 2(

.period current the in Company the of estimates accounting in changes no are There

errors accounting s'period prior of Correction 28.

.year current the in errors accounting s'period prior no is There

Taxation 5.

Group the to applicable taxes of rates and types The 1.

Type taxes of	basis Tax	rate Tax
Value tax added-	Taxable value added amount	17%
Business tax	Taxable business turnover	5%
City maintenance and construction tax	Amounts value of added- and tax business tax	1%-7%
Education surcharges	Amounts value of added- and tax business tax	3%
Corporate income tax	Taxable income	25%

approvals and preferences Tax 2.

Certificate received ,Company the of subsidiary a .,Ltd .,Co Refrigerator) Guangdong (Ronshen Hisense was which 2011 August 23 dated) 201144000198GF :Number (Enterprise Technology New/High of Finance Provincial Guangdong ,Department Technology and Science Guangdong the by issued jointly Taxation Local Provincial Guangdong and Bureau Tax State Provincial Guangdong ,Department preference tax the to Pursuant .)2013 and 2012 2011, (years three of period effective an with ,Bureau enterprise preferential the to entitled is subsidiary this ,Enterprises Technology New/High on regulation 2013. and 2012 2011, in 15% of rate tax income

New/High of Certificate received ,Company the of subsidiary a .,Ltd .,Co Mould Kelon Guangdong issued jointly was which 2011 October 13 dated) 201144000843GF :Number (Enterprise Technology ,Department Finance Provincial Guangdong ,Department Technology and Science Guangdong the by an with ,Bureau Taxation Local Provincial Guangdong and Bureau Tax State Provincial Guangdong on regulation preference tax the to Pursuant .)2013 and 2012 2011, (years three of period effective tax income enterprise preferential the to entitled is subsidiary this ,Enterprises Technology New/High 2013. and 2012 2011, in 15% of rate

of Certificate received ,Company the of subsidiary a .,Ltd .,Co Freezer) Guangdong (Ronshen Hisense was which 2012 November 26 dated) 201244000446GF :Number (Enterprise Technology New/High Finance Provincial Guangdong ,Department Technology and Science Guangdong the by issued jointly Taxation Local Provincial Guangdong and Bureau Tax State Provincial Guangdong ,Department preference tax the to Pursuant .)2014 and 2013 2012, (years three of period effective an with ,Bureau enterprise preferential the to entitled is subsidiary this ,Enterprises Technology New/High on regulation 2014. and 2013 2012, in 15% of rate tax income

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (Taxation 5.

(continued (approvals and preferences Tax 2.

in Enterprises Technology New/High Recognized of List Tentative First the of Notice the to According .,Ltd .,Co Fittings Kelon Guangdong ,)1228 .No] 2013 [Yuekehangaozi (2013 in Province Guangdong New/High a as certified was 2012, in 15% of rate tax income an with ,Company the of subsidiary a to According .)2015 and 2014 2013, (years three of period effective an with ,Enterprise Technology enterprise applicable the ,Enterprises Technology New/High on regulation preference tax relevant the 15%. is 2015 and 2014 2013, in subsidiary this for rate tax income

/High of Certificate received ,Company the of subsidiary a .,Ltd .,Co Refrigerator) Chengdu (Hisense jointly was which 2012 November 28 dated) 201251000207GF :Number (Enterprise Technology New ,Department Finance Provincial Sichuan ,Department Technology and Science Sichuan the by issued effective an with ,Bureau Taxation Local Provincial Sichuan and Bureau Tax State Provincial Sichuan New/High on regulation preference tax the to Pursuant .)2014 and 2013 2012, (years three of period 15% of rate tax income enterprise preferential the to entitled is subsidiary this ,Enterprises Technology 2014. and 2013 2012, in

New/High of Certificate received ,Company the of subsidiary a .Ltd .,Co Electric) Beijing (Hisense by issued jointly was which 2011 October 28 dated) 201111002104GF :Number (Enterprise Technology Taxation State Beijing ,Department Finance Beijing ,Department Technology and Science Beijing the and 2012 2011, (years three of period effective an with ,Bureau Taxation Local Beijing and Bureau the ,Enterprises Technology New/High on regulation preference tax relevant the to According .)2013 15%. is 2013 and 2012 2011, in subsidiary this for rate tax income enterprise applicable

Enterprises Technology New/High Recognized of List Tentative Second the of Notice the to According a .,Ltd .,Co Electric) Nanjing (Hisense ,)18 .No] 2013 [Sugaoqixie (2013 in Province Jiangsu in New/High a as certified was 2012, in 15% of rate tax income an with ,Company the of subsidiary to According .)2015 and 2014 2013, (years three of period effective an with ,Enterprise Technology enterprise applicable the ,Enterprises Technology New/High on regulation preference tax relevant the 15%. is 2015 and 2014 2013, in subsidiary this for rate tax income

Certificate the received ,Company the of subsidiary a .,Ltd .,Co conditioning-Air) Shandong (Hisense was which 2011 September 6 dated) 201137100040GF :Number (Enterprise Technology New/High of ,Department Finance Qingdao ,Department Technology and Science Qingdao the by issued jointly effective an with ,Bureau Taxation Local Qingdao and Bureau Taxation State Provincial Shandong on regulation preference tax relevant the to According .)2013 and 2012 2011, (years three of period 2011, in subsidiary this for rate tax income enterprise applicable the ,Enterprises Technology New/High 15%. is 2013 and 2012

/High of Certificate the received ,Company the of subsidiary a .,Ltd .,Co Mould Hisense Qingdao jointly was which 2011 September 6 dated) 201137100073GF :Number (Enterprise Technology New Shandong ,Department Finance Qingdao ,Department Technology and Science Qingdao the by issued of period effective an with ,Bureau Taxation Local Qingdao and Bureau Taxation State Provincial New/High on regulation preference tax relevant the to According .)2013 and 2012 2011, (years three and 2012 2011, in subsidiary this for rate tax income enterprise applicable the ,Enterprises Technology 15%. is 2013

the received ,Company the of subsidiary a .,Ltd .,Co Refrigerator) Yangzhou (Ronshen Hisense December 3 dated) 201332000826GR :Number (Enterprise Technology New/High of Certificate Finance Jiangsu ,Department Technology and Science Jiangsu the by issued jointly was which 2013 with ,Bureau Taxation Local Jiangsu and Bureau Taxation State Provincial Shandong ,Department preference tax relevant the to According .)2015 and 2014 2013, (years three of period effective an this for rate tax income enterprise applicable the ,Enterprises Technology New/High on regulation 15%. is 2015 and 2014 2013, in subsidiary

assessable the on taxed are Kong Hong in incorporated were which Company the of subsidiaries The .(16.5% 2012:) 16.5% of rate a at Kong Hong in arising profits

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (Taxation 5.

illustrations Other 3.

• and vehicle ,surcharges education local ,tax use land ,tax estate real including ,taxes Other) 1( in payable and calculated are .,etc tax income individual withholding ,duty stamp ,tax vessel .laws tax State the of regulations relevant the with accordance
• is and Japan in representative legal a is ,Company the of subsidiary a ,Ltd) Japan (Kelon) 2( tax inhabitant corporate ,tax corporate including (taxations of categories major all in involved each of rate and bases The .tax asset fixed and tax consumption ,)tax business corporate and :follows as are taxes of type

Type taxes of	Basis Tax	rate Tax
Corporation tax	Based the on audited profits for period the	In accordance the with applicable local rate tax
Corporate inhabitant (tax (tax local	A tax fixed on rate legal the representative and itself proportional rate tax s'it on earned income	In accordance the with applicable local rate tax
Corporate business tax (tax local(	total The amount income of value , surcharge and capital for period the	In accordance the with applicable local rate tax
Consumption tax	The difference between the sales total amount and total the purchase amount of the payer tax	In accordance the with applicable local rate tax
Fixed tax asset	Value lands of buildings , and depreciable assets	In accordance the with applicable local rate tax

statements financial consolidated and combination Business 6.

0000.'RMB in denominated are table following the in amounts all ,stated expressly otherwise Unless

subsidiaries Major) 1(

investment or establishment from acquired Subsidiaries 1.

subsidiary of Name	of Type subsidiary	of Nature of Place registration	Registered Business	type Entity capital	business of Scope	Actual investment end the at Period the	Shareholding of	Indirectly Direct	voting of %) % ( not or held rights	Minority Consolidated	of Amount minority used interest loss off set to to attributable minority interest interest	period the of loss of Excess attributable share minority to by offset subsidiary the of over parent the of ownership ownership of share interest minority by as subsidiary the in year the of beginning the at
(Guangdong (Ronshen Hisense Refrigerator Guangdong (".Ltd .,Co ("Refrigerator	owned-Wholly subsidiary	Industrial Foshan	\$26,800,000US	liability Limited company	Manufacture refrigerators of sale and	20,447.73		30% 70%	Yes 100%
Kelon Guangdong .Ltd .,Co conditioner-Air 1 *("conditioner-Air Guangdong("	Subsidiary	Industrial Foshan	\$36,150,000US	liability Limited company	Manufacture conditioners-air of sale and	60% 28,100.00			Yes 100%
Hisense Freezer) Guangdong (Ronshen Co ("Freezer Guangdong (".Ltd .,	owned-Wholly subsidiary	Industrial Foshan		liability Limited 23,700.00 company	Manufacture freezers of sale and	3,523.87		56% 44%	Yes 100%
Shunde Electrical Household Kelon Appliance ("HEA Kelon (".Ltd .,Co	owned-Wholly subsidiary	Industrial Foshan		liability Limited 1,000.00 company	Manufacture household of sale and appliances	250.00		75% 25%	Yes 100%
Guangdong .Ltd .,Co Fittings Kelon ("Fittings Kelon("	owned-Wholly subsidiary	Industrial Foshan	\$5,620,000US	liability Limited company	Manufacture for parts spare of sale and refrigerators conditioners-air and	4,289.20		30% 70%	Yes 100%
Shunde Foshan .,Co Plastic Rongsheng ("Plastic Rongsheng (".Ltd	Subsidiary	Industrial Foshan	\$15,827,400US	liability Limited company	parts plastic of Manufacture	44.92% 8,174.80			70.05% 25.13%	8,230.25 Yes
Guangdong .Ltd .,Co Mould Kelon ("Mould Kelon("	Subsidiary	Industrial Foshan	\$15,056,100US	liability Limited company	mould of Manufacture	40.22% 7,770.68			70.11% 29.89%	4,859.52 Yes
Huaao Guangdong .Ltd .,Co Electronics 1 *("Electronics Huaao("	Subsidiary	Industrial Foshan		liability Limited 1,000.00 company	and Research and production ,development products electronic of sale	700.00		70%	Yes 100%
Guangdong Kelon Shunde Foshan Property Kelon (".Ltd .,Co Service ("Property	owned-Wholly subsidiary	Service Foshan		liability Limited 500.00 company	Corporate ,management consultancy catering design decoration household ,	492.78		100%	Yes 100%

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (statements financial consolidated and combination Business 6.

0000.'RMB in denominated are table following the in amounts all ,stated expressly otherwise Unless

(continued (subsidiaries Major) 1(

(continued (investment or establishment from acquired Subsidiaries 1.

subsidiary of Name	of Type subsidiary	of Nature of Place registration	Registered Business		type Entity capital	business of Scope	Actual investment end the at Period the	Shareholding of	Indirectly Direct	voting of %) % ( not or held rights	Minority Consolidated	of Amount minority used interest loss off set to to attributable minority interest interest	period the of loss of Excess attributable share minority to by offset subsidiary the of over parent the of ownership ownership of share interest minority by as subsidiary the in year the of beginning the at
Shunde Foshan Export & Import Wangao	owned-Wholly		Commercial Foshan		liability Limited 300.00	export and Import	300.00		80% 20%	Yes 100%
("E&I Wangao (".Ltd .,Co Shunde Foshan Electronics Jiake Kelon ("Jiake Kelon (".Ltd .,Co	subsidiary owned-Wholly subsidiary	Industrial Foshan			company liability Limited 6,000.00 company	and IT ,technology communication and technology electronics-micro development	6,000.00		30% 70%	Yes 100%
Guangdong Electrical Weili Kelon Appliances ("Weili Kelon (".Ltd .,Co	Subsidiary	Industrial Zhongshan			liability Limited 20,000.00 company	of Production ,machines washing intelligent and conditioners-air intelligent after and services maintenance sale- technology other for consultation products domestic for products 70% , sale		55%		80% 25%	(436.50) Yes
Ronshen Hisense Refrigerator) Yingkou ( .,Co ("Refrigerator Yingkou (".Ltd	Subsidiary	Industrial Yingkou			liability Limited 20,000.00 company	Manufacture refrigerators of sale and	42% 14,201.75			78.79% 36.79%	562.00 Yes
Jiangxi Development Industrial Kelon ("Kelon Jiangxi (".Ltd .,Co	owned-Wholly subsidiary	Industrial Nanchang		\$29,800,000US	liability Limited company	Manufacture household of sale and and ,conditioners-air commercial refrigerators small and freezers , appliances household	23,910.48		40% 60%	Yes 100%
Jiangxi Electrical Combine Kelon Jiangxi (".Ltd .,Co Appliances 2*("Combine	Subsidiary	Industrial Nanchang			liability Limited 2,000.00 company	and Research and production ,development of sale air commercial and household conditioners and freezers ,refrigerators , appliances household small	1,100.00		55%	No 55%
Hangzhou .Ltd .,Co Electrical Kelon ("Kelon Hangzhou("	owned-Wholly subsidiary	Industrial Hangzhou			liability Limited 2,400.00 company	and Research production and development high of and saving energy ,efficiency environmental ,refrigerators friendly technology friendly environmental for refrigerators ,consultation information , warehousing s'Company the of sale and , products	100% 2,400.00			Yes 100%
(Yangzhou (Ronshen Hisense .Ltd .,Co Refrigerator ("Refrigerator Yangzhou("	owned-Wholly subsidiary	Industrial Yangzhou		\$44,447,900US	liability Limited company	Production ,saving energy of sale and environmental and refrigerators friendly energy other electrical cooling saving appliances	32,230.36	25.67% 74.33%		Yes 100%
Shangqiu .Ltd .,Co Electrical Kelon ("Kelon Shangqiu("	owned-Wholly subsidiary	Industrial Shangqiu			liability Limited 15,000.00 company	Research manufacture ,development and sale and commercial and household of conditioners-air freezers ,refrigerators , small and and appliances household parts provision and ,accessories and relevant of technical and information services consultancy	15,000.00		100%	Yes 100%
Zhuhai Industrial Electrical Kelon .Ltd .,Co Development ("Kelon Zhuhai("	owned-Wholly subsidiary	Industrial Zhuhai		\$29,980,000US	liability Limited company	and Research manufacture and development of ,conditioners-air ,refrigerators freezers appliances household small , accessories related and	23,565.64		25% 75%	Yes 100%
Shenzhen .Ltd .,Co Purchase Kelon ("Kelon Shenzhen("	owned-Wholly subsidiary		Commercial Shenzhen		liability Limited 10,000.00 company	Domestic and supply material ,business marketing control ,franchise excluding ( monopoly and and import); goods of export ,warehousing of provision; consultation information	10,000.00		5% 95%	Yes 100%
River Pearl .Ltd .,Co Refrigerator Electric ("Refrigerator River Pearl("	owned-Wholly subsidiary	Kong Hong	HK Commercial		liability Limited \$400,000 company	of Sale accessories and materials raw	31.45		100%	Yes 100%
Development Kelon Kelon (".Ltd .,Co ("Development	owned-Wholly subsidiary	Investment Kong Hong		\$5,000,000HK	liability Limited company	holding Investment	100% 1,120.00			Yes 100%
Kelon ("Limited) Japan (Kelon	owned-Wholly") Japan subsidiary		Commercial Japan	1,100,000,000JPY	liability Limited company	research Technical electrical in trading and appliances household	2,398.51		100%	Yes 100%
Kelon Incorporation International	owned-Wholly") KII (" subsidiary	Virgin British Islands	US Commercial		liability Limited \$50,000 company	Investment household of sale and holding appliances	0.0006		100%	Yes 100%
Chengdu (Hisense .Ltd .,Co Refrigerator) ("Refrigerator Chengdu("	owned-Wholly subsidiary	Industrial Chengdu			liability Limited 5,000.00 company	Manufacture and appliances household of refrigeration the of sale ,equipment Company of provision and ,products s' services sale-after related	100% 5,000.00			Yes 100%
Shandong (Hisense .Ltd .,Co Refrigerator) ("Refrigerator Shandong("	owned-Wholly subsidiary	Industrial Qingdao			liability Limited 27,500.00 company	Manufacture and saving energy of environmental ,refrigerators friendly freezers energy household other and saving of sale; appliances cooling self the of products manufactured- Company development and design; new of energy of area the in products saving friendly environmental and refrigerators saving energy and freezers ,	100% 27,500.00			Yes 100%

appliances cooling

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (statements financial consolidated and combination Business 6.

0000.'RMB in denominated are table following the in amounts all ,stated expressly otherwise Unless

(continued (subsidiaries Major) 1(

(continued (investment or establishment from acquired Subsidiaries 1.

subsidiary of Name	of Type subsidiary	of Nature of Place registration	Registered Business	type Entity capital	business of Scope	Actual investment end the at Period the	Shareholding of Indirectly Direct	voting of %) % ( not or held rights	Minority Consolidated	of Amount minority used interest loss off set to to attributable minority interest interest	period the of loss of Excess attributable share minority to by offset subsidiary the of over parent the of ownership ownership of share interest minority by as subsidiary the in year the of beginning the at
Guangdong Refrigerator Hisense .Ltd .,Co Marketing ("Co Marketing Refrigerator("	Subsidiary		Commercial Foshan	stock Joint 20,081.90 limited	Sale and sale-after of provision and technical ,refrigerators of services freezers living ,machines washing , appliances household other and appliances	15,827.60		78.82% 78.82%	4,252.86 Yes
Qingdao conditioner-Air Hisense .Ltd .,Co Marketing Air(" ("Co Marketing conditioner-	Subsidiary		Commercial Qingdao	stock Joint 10,091.00 limited	General and sales :operation of items provision technical and sale-after of services air ,conditioners-air of living ,dehumidifiers ,purifiers appliances appliances environmental ,	7,626.00		75.57% 75.57%	2,464.04 Yes
Hisense (Europe (Appliance Home Research Center Development & GmbH ("Research Europe Hisense ("	owned-Wholly subsidiary	Germany	EUR center D&R	liability Limited 50,000.00 company	Research design and development , of ,conditioners-air ,refrigerators washing household small ,machines appliances household other and appliances technical of provision , consultation technical and services , support and ,appliances household for of sale household of proposals design products appliances	39.72	100%	Yes 100%

control common under entities involving combination business from acquired Subsidiaries 2.

subsidiary of Name	of Type place subsidiary	of Nature Registered	Registered business	type Entity capital	business of Scope	Actual investment end the at Period the	Shareholding of Indirectly Direct	voting of %) % (	not or held rights	Consolidated Minority presentation for	of Amount interest minority off set to used attributable loss minority to interest interest	period the of loss of Excess minority to attributable offset subsidiary the of share parent the of ownership by ownership of share over the in interest minority by as subsidiary year the of beginning the at
Hisense .Ltd .,Co Electric) Beijing ( ("Refrigerator Beijing("	Subsidiary	Industrial Beijing	Limited 8,571.00	liability company	Manufacture and products refrigerator of household other self of sale; appliances produced of export and import; products and goods provision and ,technologies import of services agency export and	55% 9,210.12			55%	7,367.11 Yes
Shandong (Hisense .,Co conditioning-Air) (".Ltd ("conditioning-Air Shandong	owned-Wholly subsidiary	Industrial Qingdao	Limited 50,000.00	liability company	Research manufacture ,development and sale and products conditioning-air of injection and of provision and ,moulds services maintenance sale-after	100% 56,717.55			Yes 100%
Zhejiang (Hisense .,Co conditioning-Air) Ltd ("conditioning-Air Zhejiang (".	Subsidiary	Industrial Huzhou	Limited 11,000.00	liability company	of Production manufacture ,conditioners-air sale and ,appliances household other of provision ,services technical related of import and and goods of export and technologies	51% 5,452.36			51%	4,188.80 Yes
Qingdao .Ltd .,Co Mould Hisense ("Mould Hisense("	Subsidiary	Industrial Qingdao	Limited 2,764.20	liability company	manufacture and Design machine ,moulds of processing of manufacture and design , plastic ,jigs brushing/painting ,injection .etc processing and	78.70% 12,162.80			78.70%	5,358.51 Yes
Hisense .Ltd .,Co Electric) Nanjing ( ("Refrigerator Nanjing("	Subsidiary	Industrial Nanjing	Limited 12,869.15	liability company	Research manufacture ,development and sale and refrigeration free-fluorine of household other and products appliances of export and Import . various self technologies and goods distributed and manufactured	7,721.49			60% 60%	6,614.07 Yes

,Electronics Huaao in interests equity 70% and conditioner-Air Guangdong in interests equity 60% holds Company The 1* ,losses their of 100% bear and companies these to support financial provide to committed has Company the as however .shareholding 100% for accounted was investment equity term-long the therefore

and liquidation in declared has Combine Jiangxi As .Combine Jiangxi in interests equity 55% holds Company The 2* .statements financial the in consolidated been not has it therefore ,reorganization

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (statements financial consolidated and combination Business 6.

(continued (subsidiaries Major) 1(

combination business of scope in Changes 3.

period the for consolidated newly Subsidiaries

		Unit RMB :
	assets Net at as of end the	profit Net
Name	the period	the for period
Refrigerator Marketing Co	200,751,004.54	) (67,995.46
-Air conditioner Marketing Co	100,870,837.20	) (39,162.80
Hisense Europe Research	420,945.00

entities operating overseas of statements financial the in items major for rate Exchange 4.

				Unit RMB :
Major in items the financial statements	Currency	balances in foreign exchange	Exchange rate	balances rMb in
at Cash and bank hand on	HKD	51,756,204.10	0.7862	40,690,727.66
Net accounts receivable	HKD	635,110,522.16	0.7862	499,323,892.52
Other payables	HKD	730,478,962.67	0.7862	574,302,560.45
Total operating revenue	HKD	3,388,688,761.58	0.7985	2,705,867,976.12
General and Administrative
expenses	HKD	861,998.70	0.7985	688,305.96

:rate exchange of Particulars

foreign in accounted are that entities operating overseas ,consolidation of scope the Within Research Europe Hisense ,KII ,Development Kelon ,Refrigerator River Pearl include currency using items the translated has Company the ,consolidation of date the On .Kelon Japan and under items whereas ,date sheet balance the on liabilities and assets for rate exchange spot under items and ,rate exchange historic using translated were) profits unallocated except (equity and assets between difference The .rate exchange average using translated were loss and profit financial currency foreign of translation on Difference "in reflected was assets net and liabilities .sheet balance the in equity s'shareholder under separately stated was and" statement

(RMB in denominated are amounts ,stated expressly otherwise Unless(

STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

balances closing whereas 2013, January 1 at as balances to refer balances opening ,specified otherwise Unless( period previous the whereas 2013, to refers period current the and 2013, December 31 at as balances to refer ((Company the of statements financial the to notes major including (notes following the in 2012 to refers

hand on and bank at Cash 1.

		Closing balance		Opening balance
		Exchange			Exchange
item	Foreign currency	rate	rMb	Foreign currency	rate	rMb
Cash :hand on
RMB	2,857.60	1.0000	2,857.60	6,818.62	1.0000	6,818.62
USD				0.75	6.2855	4.72
JPY				1,200.00	0.0730	87.66
Others						0.06
:Subtotal			2,857.60			6,911.06
Bank :deposits
RMB	327,865,899.56	1.0000	327,865,899.56	415,593,988.42	1.0000	415,593,988.42
HKD	10,123,987.34	0.7862	7,959,782.49	699,256.80	0.8108	566,957.73
USD	20,868,665.66	6.0969	127,234,162.50	14,650,362.17	6.2855	92,084,851.41
JPY	96,485.00	0.0578	5,574.15	145,261.00	0.0730	10,611.17
EUR	1,176,618.04	8.4189	9,905,829.81	526,331.88	8.3176	4,377,817.96
Others	2,210.47		13,071.43	156,024.90		1,020,238.78
Subtotal bank of
:deposits			472,984,319.94			513,654,465.47
Other bank at cash :hand on and
RMB	800,000.00	1.0000	800,000.00	2,404,091.43	1.0000	2,404,091.43
Subtotal other of cash and bank at
:hand on			800,000.00			2,404,091.43
total			473,787,177.54			516,065,467.96

:hand on and bank at cash of Particulars

.fund guarantee represented mainly hand on and bank at cash Other

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (hand on and bank at Cash 1.

:follows as listed are cash restricted of Details

item	Closing balance	opening balance
Guarantee fund	800,000.00	2,404,091.43
total	800,000.00	2,404,091.43

trading-for-held assets Financial 2.

trading-for-held assets financial of Classification) 1(

item	Closing balance	opening balance
Derivative financial assets	67,115,019.35	10,678,293.47
total	67,115,019.35	10,678,293.47

trading-for-held assets financial of Particulars) 2(

• at as trading-for-held assets financial the realizing for restriction material no was There 1. .year the of end the
• the by into entered contracts forward exchange foreign undue the represented mainly It 2. on based liabilities or assets financial the as recognized was which ,banks and Company the and contracts exchange foreign undue the of quotation the between difference the 2013. December 31 at as rate exchange foreign future

receivable Notes 3.

receivable notes of Classification) 1(

Category	Closing balance	opening balance
Bank acceptance notes	2,152,781,319.53	1,529,113,685.60
Trade acceptance notes	8,020,413.97	29,652,507.01
total	2,160,801,733.50	1,558,766,192.61

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivable Notes 3.

2012:) 841,772,597.15RMB to amounted receivable notes pledged ,year the of end the at As) 2( :follows as amounts five top the of particulars the with ,)Nil

Issuer	of Date issuance	date Due	Amount
1 Top	August 30 2013	28 February 2014	14,748,272.83
2 Top	August 30 2013	28 February 2014	11,561,940.35
3 Top	August 16 2013	16 February 2014	10,000,000.00
4 Top	28 November 2013	28 2014 May	10,000,000.00
5 Top	28 November 2013	28 2014 May	10,000,000.00

• .receivable notes discounted no was there ,year the of end the at As) 3(
• accounts to reclassified are that receivable notes no were there ,year the of end the at As) 4( .issuers the of inability to due receivable
• to amounted matured not but parties other to endorsed notes ,year the of end the at As) 5( the of particulars the with ,)3,809,337,554.60RMB 2012: December 31 (5,114,804,598.86RMB :follows as amounts five top

issuer	of Date issuance	date Due	amount
Beijing Jingdong Century	26 2013 July	26 January 2014	30,000,000.00
Information Technology .Ltd .,Co Suning procurement of center	22 November 21 2013	2014 May	17,799,241.01
Suning Commerce Group .,Co .Ltd
Suning procurement of center Suning Commerce Group .,Co	26 2013 July	26 January 2014	16,019,523.30
.Ltd
Suning procurement of center Suning Commerce Group .,Co	22 November 21 2013	2014 May	12,965,410.21
.Ltd
Shanghai Suning Commerce Marketing .Ltd .,Co	5 2013 July	January 5 2014	10,000,000.00

.year the of end the at as parties related from receivables notes of details for 8 note see Please) 6(

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

receivable Accounts 4.

:category by receivable Accounts) 1(

	Closing balance
	Carrying amount		Provision for debts bad
Category	Amount	total of % balance	Amount	total of % balance
Individually significant subject and separate to provision
Ageing analysis	1,784,069,239.64	97.88	155,260,459.01	8.70
Greencool Companies	38,689,983.28	2.12	22,726,941.64	58.74
Subtotal	1,822,759,222.92	100.00	177,987,400.65	9.76
Individually insignificant subject but separate to provision
Total	1,822,759,222.92	100.00	177,987,400.65	9.76

table above from Continued

	Opening balance
	Carrying amount		Provision for debts bad
Category	Amount	total of % balance	Amount	total of % balance
Individually significant subject and separate to provision
Aging analysis	1,607,402,974.16	97.65	167,483,810.31	10.43
Greencool Companies	38,689,983.28	2.35	22,726,941.64	58.74
of Subtotal category the Individually insignificant subject but separate to provision	1,646,092,957.44	100.00	190,210,751.95	11.56
Total	1,646,092,957.44	100.00	190,210,751.95	11.56

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivable Accounts 4.

(continued (:category by receivable Accounts) 1(

:method ageing using by debts bad provided category the in receivable Accounts

balance Closing			balance Opening
	amount Carrying			amount Carrying
		total of %	for Provision		total of %	for Provision
Age	Amount	balance	debts bad	Amount	balance	debts bad
Within months three	1,603,973,518.09	88.00		1,432,725,055.88	87.04
Over but months three
months six within	25,252,208.41	1.39	2,525,220.84	1,612,142.13	0.10	161,214.21
Over but months six
year one within	4,216,549.94	0.23	2,108,274.97	11,486,360.10	0.70	5,743,180.05
year one Over	150,626,963.20	8.26	150,626,963.20	161,579,416.05	9.82	161,579,416.05
total	1,784,069,239.64	97.88	155,260,459.01	1,607,402,974.16	97.66	167,483,810.31

:Companies Greencool for as debts bad provided category the in receivable Accounts

	Closing	balance		Opening balance
Company name	Amount	Provision for debts bad	Amount	Provision for debts bad
Hefei Weixi Electrical Appliance .Ltd .,Co Hefei(" ("Weixi	18,229,589.24	7,805,094.62	18,229,589.24	7,805,094.62
Wuhan Changrong Electrical Appliance Ltd .,Co Wuhan (".
Changrong ("	20,460,394.04	14,921,847.02	20,460,394.04	14,921,847.02
Total	38,689,983.28	22,726,941.64	38,689,983.28	22,726,941.64

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivable Accounts 4.

receivable accounts for provision in Movements) 2(

			Decrease for year the
Year	Opening balance	Provision for year the	Reversal	off-Write	Closing balance
2013	190,210,751.95	1,841,492.24	10,639,007.31	3,425,836.23	177,987,400.65

off written are that receivable Accounts) 3(

Company	Nature of accounts receivable	Amount written off	Reason for off write	Arising from related party transactions not or
Unrelated parties	Loans	3,425,836.23	Not recoverable due long to outstanding	No
Total		3,425,836.23	—	—

or 5% holds who shareholder from receivable accounts no was there 2013, December 31 at As) 4( there 2012, December 31 at As .Company the of rights voting the of shares) 5% including (more of shares) 5% including (more or 5% holds who shareholder from receivable accounts no was .Company the of rights voting the

receivable accounts five Top) 5(

2013

	Relationship the with			Percentage the of total accounts receivable amount
.No	Company	Amount	Ageing	(%)
1 Top	Unrelated party	226,200,443.94	Within three months	12.41
2 Top	Unrelated party	161,597,029.09	Within three months	8.87
3 Top	Related party	76,054,069.12	Within three months	4.17
4 Top	Unrelated party	72,490,706.42	Within three months	3.98
5 Top	Unrelated party	71,510,134.24	Within three months	3.92
Total		607,852,382.81	—	33.35

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivable Accounts 4.

(continued (receivable accounts five Top) 5(

2012

.No	Relationship the with Company	Amount	Ageing	Percentage the of total accounts receivable amount (%)
1 Top	Unrelated party	238,358,502.63	Within three months	14.48
2 Top	Unrelated party	201,274,092.16	Within three months	12.23
3 Top	Related party	151,758,526.68	Within three months	9.22
4 Top	Related party	103,756,948.62	Within three months	6.30
5 Top	Related party	86,931,073.83	Within three months	5.28
Total		782,079,143.92	—	47.51

• .year the of end the at parties related from receivable accounts of details for 8 note see Please) 6(
• for used were 239,601,908.86RMB to amounted receivable accounts ,year the of end the at As) 7( 191,681,513.02.RMB to amounted borrowings securing and factoring

Prepayments 5.

follows as analyzed is prepayments of ageing The) 1(

	Closing	balance	opening balance
age	amount	Percentage ) %(	amount	Percentage (%)
Within year one	349,160,071.55	98.94	303,832,959.24	99.85
to One years two	3,278,286.47	0.93
to Two years three			3,429.34
Over years three	465,213.00	0.13	465,213.00	0.15
total	352,903,571.02	100.00	304,301,601.58	100.00

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (Prepayments 5.

prepayments five Top) 2(

2013

.no	relationship the with Company	amount	ageing	of reason unsettlement
1 Top	Unrelated party	85,473,966.79	Within year one	Normal settlement
2 Top	Unrelated party	32,924,778.53	Within year one	Normal settlement
3 Top	Unrelated party	27,576,903.99	Within year one	Normal settlement
4 Top	Unrelated party	14,124,501.28	Within year one	Normal settlement
5 Top	Unrelated party	10,916,740.00	Within year one	Normal settlement
total		171,016,890.59	—
2012
	relationship

.no	the with Company	amount	ageing	of reason unsettlement
1 Top	Unrelated party	110,605,760.12	Within year one	Normal settlement
2 Top	Unrelated party	50,595,506.27	Within year one	Normal settlement
3 Top	Unrelated party	36,624,182.25	Within year one	Normal settlement
4 Top	Unrelated party	21,092,306.73	Within year one	Normal settlement
5 Top	Unrelated party	10,558,637.05	Within year one	Normal settlement
total		229,476,392.42	—

or 5% holds who shareholder from due prepayments no was there 2013, December 31 at As) 3( there 2012, December 31 at As .Company the of rights voting the of shares) 5% including (more the of shares) 5% including (more or 5% holds who shareholder from due prepayments no was .Company the of rights voting

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

receivables Other 6.

:category by receivables Other) 1(

	Closing balance
	Carrying	amount	Provision for	debts bad
Category	amount	total of % balance	amount	total of % balance
Individually significant and subject separate to provision
Ageing analysis	357,928,069.35	48.18	38,570,595.67	10.78
Greencool Companies	385,033,369.88	51.82	158,053,346.90	41.05
Subtotal	742,961,439.23	100.00	196,623,942.57	26.46
Individually insignificant but subject separate to provision
total	742,961,439.23	100.00	196,623,942.57	26.46

table above from Continued

	opening balance
	Carrying	amount	Provision for	debts bad
Category	amount	total of % balance	amount	total of % balance
Individually significant and subject separate to provision
Ageing analysis	114,494,489.83	15.77	40,794,652.88	35.63
Greencool Companies	611,538,997.88	84.23	342,516,669.69	56.01
Subtotal	726,033,487.71	100.00	383,311,322.57	52.80
Individually insignificant but subject separate to provision
total	726,033,487.71	100.00	383,311,322.57	52.80

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

(continued (:category by receivables Other) 1(

:analysis ageing using by debts bad provided category the in receivables Other

		Closing balance		opening balance
	Carrying	amount		Carrying amount
age	amount	total of % balance	Provision for debts bad	amount	total of % balance	Provision for debts bad
three Within months	317,731,755.84	42.77		72,331,742.43	9.96
three Over but months six within months	994,388.25	0.13	99,438.82	621,139.95	0.09	62,114.00
Over months six within but
year one	1,461,536.83	0.20	730,768.42	1,618,137.15	0.22	809,068.58
Over year one	37,740,388.43	5.08	37,740,388.43	39,923,470.30	5.50	39,923,470.30
total	357,928,069.35	48.18	38,570,595.67	114,494,489.83	15.77	40,794,652.88

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

(continued (:category by receivables Other) 1(

:Companies Greencool for as debts bad provided category the in receivables Other

	Closing	balance	Opening balance
		Provision for		Provision for
Company name	Amount	debts bad	Amount	debts bad
Guangdong Greencool	13,754,600.00	6,185,215.74	13,754,600.00	7,962,961.47
Hainan Greencool Environmental
Protection Engineering .Ltd .,Co
Hainan(" ("Greencool	12,289,357.71	12,289,357.71	12,289,357.71	11,313,119.16
Jiangxi Kesheng Trading .Ltd .,Co
Jiangxi(" ("Kesheng	27,462,676.72	20,306,709.12	27,462,676.72	21,390,370.86
Jinan Ai San Chemical Fu .Ltd .,Co
Jinan(" ("Fu Ai San	121,496,535.45	24,795,942.45	121,496,535.45	64,813,858.20
Tianjin Xiangrun Trading
Development Ltd .,Co Tianjin (".
("Xiangrun			96,905,328.00	48,706,110.00
Tianjin Lixin			89,600,300.00	44,800,150.00
Greencool Technology Development
Shenzhen( .Ltd .,Co) Shenzhen ("
Greencool Technology ("	32,000,000.00	15,973,475.39	32,000,000.00
Greencool Environmental Engineering
Shenzhen .Ltd .,Co Shenzhen ("
Greencool Environmental ("	33,000,000.00	16,472,646.49	33,000,000.00
Jiangxi Plastic Keda Technology .,Co
Ltd Jiangxi (". ("Keda	13,000,200.00		13,000,200.00	6,500,100.00
Zhuhai Longjia Refrigerating Plant
Ltd .,Co Zhuhai (". ("Longjia	28,600,000.00		28,600,000.00	14,300,000.00
Zhuhai Air Defa conditioner- Fittings
Ltd .,Co Zhuhai (". ("Defa	21,400,000.00		21,400,000.00	10,700,000.00
Wuhan Changrong Electrical
Appliance .Ltd .,Co
Wuhan(" ("Changrong	20,000,000.00		20,000,000.00	10,000,000.00
Beijing Deheng Solicitors Deheng ("
("Solicitors	4,000,000.00	4,000,000.00	4,000,000.00	4,000,000.00
Finance of Bureau Yangzhou
Economic Development Zone			40,000,000.00	40,000,000.00
Shangqiu Bingxiong Freezing
Facilities .Ltd .,Co
Shangqiu(" ("Bingxiong	58,030,000.00	58,030,000.00	58,030,000.00	58,030,000.00
Total	385,033,369.88	158,053,346.90	611,538,997.88	342,516,669.69

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

receivables other for provision in Movements) 2(

			Decrease for	year the
year	opening balance	Provision for year the	reversal	off-Write	Closing balance
2013	383,311,322.57	34,185,117.01	126,922,253.89	93,950,243.12	196,623,942.57

off written are that receivables Other) 3(

Company	of Nature receivable	Amount written off	Reason for off write	Arising from related transactions not or
Unrelated party	Debt	186,544,481.00	Not recoverable due long to outstanding	No
Total		186,544,481.00	—	—

or 5% holds that shareholder from receivables other no was there 2013, December 31 at As) 4( there 2012, December 31 at As .Company the of rights voting the of shares) 5% including (more the of shares) 5% including (more or 5% holds that shareholder from receivable other no was .Company the of rights voting

receivables other five Top) 5(

2013

	relationship the with			Percentage of total the other receivables
.no	Company	amount	ageing	amount (%)
Top	"1 Specific third " party	121,496,535.45	three Over years	23.35
Top	"2 Specific third " party	58,030,000.00	three Over years	11.15
Top	"3 Specific third " party	33,000,000.00	three Over years	6.34
Top	"4 Specific third " party	32,000,000.00	three Over years	6.15
Top	"5 Specific third " party	28,600,000.00	three Over years	5.50
total		273,126,535.45	—	52.49

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

(continued (receivables other five Top) 5(

2012

.No	Relationship the with Company	Amount	Ageing	Percentage of total the other receivables amount (%)
1 Top	" Specific third " party	121,496,535.45	three Over years	16.73
2 Top	" Specific third " party	96,905,328.00	three Over years	13.35
3 Top	" Specific third " party	89,600,300.00	three Over years	12.34
4 Top	" Specific third " party	58,030,000.00	three Over years	7.99
5 Top	" Specific third " party	40,000,000.00	three Over years	5.51
Total		406,032,163.45	—	55.92

by controlled Companies Greencool the of abbreviation the is" party third specific "term The a had Company the whom with ,companies above the through controller beneficiary former the .flows cash unusual of series

.year the of end the at as parties related from receivables other of details for 8 note see Please) 6(

Inventories 7.

inventories of Classification) 1(

	Closing balance
Item	Carrying amount	Provision for declines value in	Carrying value
Raw materials	359,953,481.94	32,058,972.28	327,894,509.66
in Works progress	168,849,486.65	8,635,165.22	160,214,321.43
Finished goods	2,079,655,460.82	71,404,437.45	2,008,251,023.37
Total	2,608,458,429.41	112,098,574.95	2,496,359,854.46

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (Inventories 7.

(continued (inventories of Classification) 1(

table above from Continued

	Opening balance
Item	Carrying amount	Provision for declines value in	Carrying value
Raw materials	311,880,441.53	30,368,703.52	281,511,738.01
in Works progress	133,492,738.57	8,643,831.77	124,848,906.80
Finished goods	1,379,352,498.90	47,272,033.56	1,332,080,465.34
Total	1,824,725,679.00	86,284,568.85	1,738,441,110.15

inventories of value in declines for Provision) 2(

			Decrease for	year the
inventory Category	opening balance	Current year addition	reversal	off-Write	Closing balance
Raw materials	30,368,703.52	3,157,360.66	198,158.98	1,268,932.92	32,058,972.28
Works progress in	8,643,831.77	275,963.19	133,498.09	151,131.65	8,635,165.22
Finished goods	47,272,033.56	25,442,453.69	94,316.58	1,215,733.22	71,404,437.45
total	86,284,568.85	28,875,777.54	425,973.65	2,635,797.79	112,098,574.95

assets current Other 8.

item	Closing balance	opening balance
Others	5,306,649.45	3,309,064.74
Total	5,306,649.45	3,309,064.74

.others and rent prepaid represented mainly assets current other :assets current other of Particulars

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

associates and entities controlled jointly in Investments 9.

entities controlled jointly in Investments) 1(

											Unit RMB :	0000'
investee of Name	type Entity	Registered place	Legal representative	nature Business	Registered capital	of % shareholding	voting of % rights	at assets Total the of end year	liabilities Total the of end at year	assets net Total the of end at year	operating Total for revenue year the	profit Net year the for
Whirlpool Hisense Electric) Zhejiang ( Appliances Hisense (".Ltd .,Co ("Whirlpool	Limited Zhejiang company		BORRA BARBARA	Industrial	45,000.00	50.00	50.00	114,099.33	71,790.27	42,309.06	173,699.49	94.82
Hitachi Hisense	company Limited	Qing Shandong	Industrial Gong Shan		million 46.00USD	49.00	49.00	233,277.98	96,539.54	136,738.44	354,070.04	60,821.59

associates in Investments) 2(

											Unit RMB :	0000'
investee of Name	type Entity	Registered place	Legal representative	nature Business	Registered capital	of % shareholding	voting of % rights	at assets Total the of end year	liabilities Total the of end at year	assets net Total the of end at year	operating Total revenue year for	profit Net year for
Compressor Huayi .Ltd .,Co Holdings 3("Compressor Huayi("	stock Joint company	Jiangxi Ti Liu		Industrial Bin	55,962.40	3.74		636,541.71 3.74	387,796.75	248,744.97	671,000.04	25,368.22
.Ltd .,Co Logistics Attend ("Attend("	Limited	Guangzhou company	Wei Ye	Logistics Long	1,000.00	20.00	20.00	2,190.01	605.40	1,584.61	878.30	(58.32)

:associates and entities controlled jointly in investments of Particulars

• accounting and policies accounting significant the between difference significant no was There 1. policies accounting significant the and associates and entities controlled jointly the of estimates .Company the of estimations accounting and
• associations of articles the in required as :entities controlled jointly in control joint for Evidence 2. joint under be shall enterprise the of operation and production the ,venture joint the of .parties the by management
• to Compressor Huayi of directors of board the in representatives assigned has Company The 3. .Compressor Huayi with transactions major has and processes making decision its in participate significant has Company the that opinion the of is Company the of Board the ,Accordingly .associate an as Compressor Huayi recognize to continued and Compressor Huayi over influence

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

investment equity term-Long 10.

	investee	accounting treatment	investment cost	opening balance	for increase year the	for Decrease year the	Closing balance	Equity % held interest	voting % held rights	for Provision impairment	impairment in provided year the	dividend Cash year current in
	Investment 1. controlled jointly in
	entities
	Whirlpool Hisense	method Equity	225,000,000.00	209,818,988.58	1,297,493.73		211,116,482.31	50.00	50.00
	Hitachi Hisense	method Equity	332,821,597.45	484,476,011.09	292,575,261.82	73,500,000.00	703,551,272.91	49.00	49.00			73,500,000.00
	Investment 2. associates in
	2*Compressor Huayi	method Equity	24,171,468.64	50,344,878.42	25,318,824.04		75,663,702.46	3.74	3.74
	Attend	method Equity	2,000,000.00	3,285,850.81		116,634.72	3,169,216.09	20.00	20.00
	long Other 3. investment equity term-
	1*Combine	method Cost	11,000,000.00	11,000,000.00			11,000,000.00	55.00	55.00	11,000,000.00
	Hisense Xinjiang Electrical Kelon	method Cost	100,000.00	100,000.00			100,000.00	2.00	2.00
	Sales Xinjiang (".Ltd .,Co
	("Kelon
	Air Kelon Fujian .,Co Sales condition-	method Cost	100,000.00	100,000.00			100,000.00	2.00	2.00
	("Kelon Fujian (".Ltd
	Qingdao International Hisense	method Cost	3,800,000.00	3,800,000.00			3,800,000.00	12.67	12.67			4,750,000.00
	Marketing Hisense (".Ltd .,Co
	International ("Marketing
total			598,993,066.09	762,925,728.90	319,191,579.59	73,616,634.72	1,008,500,673.77			11,000,000.00		78,250,000.00

been not has it ,reorganization and liquidation in declared has ,Company the of subsidiary a ,Combine Jiangxi As 1* .impaired fully been has it in cost investment the and statements financial the in consolidated

of way by investors specified to shares additional issued ,Company the of associate an ,Compressor Huayi 2013, January In 2* issue the upon 3.74% to 6.45% from decreased was Company the of shareholding The .offering seasoned under issue private ;shares additional of

.companies unlisted are Company the of ventures joint and associates ,Compressor Huayi from Apart*

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

properties Investment 11.

method-cost by properties Investment) 1(

item		opening balance	additions the in year	reductions the in year	Closing balance
1.	cost Total	68,676,129.02			68,676,129.02
	1. Buildings	68,676,129.02			68,676,129.02
	Total 2. accumulated depreciation and
	amortization	32,229,526.93	2,500,294.34		34,729,821.27
	1. Buildings	32,229,526.93	2,500,294.34		34,729,821.27
	Total 3. book net value	36,446,602.09			33,946,307.75
	1. Buildings	36,446,602.09			33,946,307.75
	Total 4. accumulated provision for impairment 1. Buildings
	Total 5. carrying amount	36,446,602.09			33,946,307.75
	1. Buildings	36,446,602.09			33,946,307.75

properties investment of Particulars) 2(

• to amounted 2012 for and 2,500,294.34RMB to amounted 2013 for expense Depreciation 1 2,447,590.18.RMB
• .pledged were properties investment no 2013, December 31 at As 2
• 13,794,500.00,RMB of cost with properties investment 2013, December 31 at As 3 of amount carrying net and 7,305,900.00RMB of depreciation accumulated .certificate ownership obtained not have 6,488,600.00RMB
• with properties investment any identified not has Company the 2013, December 31 at As 4 any made not has therefore and amount carrying its than lower amount recoverable the .impairment for provision
• China Mainland the in located were buildings all ,properties investment the Amongst 5 .years 50 to 20 between lives useful with

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

assets Fixed 12.

assets fixed of Particulars) 1(

				Additions	Reductions
Item			Opening balance	year the in	year the in	Closing balance
T	otal 1. :cost		4,892,280,149.31	875,765,875.54	329,921,808.24	5,438,124,216.61
	Including	Buildings :	1,559,206,748.82	305,821,103.70	4,604,796.47	1,860,423,056.05
		Machinery and equipment	2,322,199,486.68	290,139,941.74	184,312,644.58	2,428,026,783.84
		Furniture and fixtures ,
		office equipment	319,081,072.38	35,332,553.54	18,544,096.17	335,869,529.75
		Motor vehicles	22,553,670.03	5,016,548.33	2,903,742.23	24,666,476.13
		Moulds	669,239,171.40	239,455,728.23	119,556,528.79	789,138,370.84
	Total 2.	accumulated :depreciation	2,855,049,979.14	342,889,688.99	246,600,447.69	2,951,339,220.44
	Including	Buildings :	727,391,533.79	69,612,800.93	2,807,246.89	794,197,087.83
		Machinery and equipment Furniture and fixtures ,	1,409,531,544.34	124,432,715.74	129,237,656.97	1,404,726,603.11
		office equipment	224,449,707.82	21,717,987.38	15,407,077.49	230,760,617.71
		Motor vehicles	12,522,598.04	2,680,188.89	2,108,723.66	13,094,063.27
		Moulds	481,154,595.15	124,445,996.05	97,039,742.68	508,560,848.52
3.	net Total	of amount assets fixed	2,037,230,170.17			2,486,784,996.17
	Including	Buildings :	831,815,215.03			1,066,225,968.22
		Machinery and equipment Furniture and fixtures ,	912,667,942.34			1,023,300,180.73
		office equipment	94,631,364.56			105,108,912.04
		Motor vehicles	10,031,071.99			11,572,412.86
		Moulds	188,084,576.25			280,577,522.32
	Total 4.	for provision impairment	127,397,721.24	10,254,633.97	19,368,051.77	118,284,303.44
	Including	Buildings :	34,216,249.60		100,997.12	34,115,252.48
		Machinery and equipment Furniture and fixtures ,	87,410,935.04	7,087,083.42	17,741,566.03	76,756,452.43
		office equipment	1,459,778.55	165,867.97	301,173.92	1,324,472.60
		Motor vehicles	1,052,691.63		621,359.22	431,332.41
		Moulds	3,258,066.42	3,001,682.58	602,955.48	5,656,793.52
T	otal 5. carrying	of amount assets fixed	1,909,832,448.93			2,368,500,692.73
	Including	Buildings :	797,598,965.43			1,032,110,715.74
		Machinery and equipment	825,257,007.30			946,543,728.30
		Furniture and fixtures ,
		office equipment	93,171,586.01			103,784,439.44
		Motor vehicles	8,978,380.36			11,141,080.45
		Moulds	184,826,509.83			274,920,728.80

to amounted progress in construction from transferred asset fixed the 2013, For .(199,999,014.31RMB 2012: (583,422,723.55RMB

• to amounted 2012 for and 342,889,688.99RMB to amounted 2013 for expense Depreciation) 2( 350,982,461.94.RMB
• .transitorily idle was asset fixed no ,year the of end the at As) 3(
• .lease finance under held was asset fixed no ,year the of end the at As) 4(

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (assets Fixed 12.

• .lease operating under out rent was asset fixed no ,year the of end the at As) 5(
• .sale for held was asset fixed no ,year the of end the at As) 6(
• .certificate ownership the obtained not has asset fixed no ,year the of end the at As) 7(
• .pledged was building no ,year the of end the at As) 8(

progress in Constructions 13.

progress in constructions of Summary) 1(

		Closing balance			opening balance
item	Carrying amount	for Provision impairment	carrying net amount	Carrying amount	for Provision impairment	carrying net amount
Yangzhou
Refrigerator	19,653,771.49		19,653,771.49	20,227,599.56		20,227,599.56
Chengdu
Refrigerator	5,307,537.85		5,307,537.85	4,079,463.99		4,079,463.99
Guangdong Air
conditioning	31,233,845.46		31,233,845.46	4,314,613.29		4,314,613.29
Air Shandong
conditioning	11,450,092.24		11,450,092.24	552,068.43		552,068.43
Shandong
Refrigerator	147,536,731.20		147,536,731.20	2,088,000.00		2,088,000.00
Others	50,121,415.61	11,325,835.67	38,795,579.94	48,408,343.98	11,325,835.67	37,082,508.31
total	265,303,393.85	11,325,835.67	253,977,558.18	79,670,089.25	11,325,835.67	68,344,253.58

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (progress in Constructions 13.

progress in construction significant in Movements) 2(

project of name	budget	opening balance	in additions year current the	to transferred assets fixed	other reductions	contribution % budget in	Progress	of source fund	Closing balance
New entrance south dormitory and reconstruction Yangzhou of		1,600,000.00	2,442,843.00	4,042,843.00			Completed	funding-Self
Refrigerator position Six package blister of machine Yangzhou Refrigerator	11,710,000.00		10,026,853.64				yet Not completed	funding-Self	10,026,853.64
and Heating system ventilating reconstruction Air Shandong of	4,150,000.00		3,026,000.00				yet Not completed	funding-Self	3,026,000.00
conditioning Power works matching electronics for	2,515,773.00		2,482,500.00				yet Not completed	funding-Self	2,482,500.00
factory Shandong of conditioning-Air ferrule Automatic drum the within of machine washing Shandong of Refrigerator	21,410,000.00		15,332,250.00				yet Not completed	funding-Self	15,332,250.00
Asano machine molding Shandong of Refrigerator	5,520,177.07		5,520,177.07				yet Not completed	funding-Self	5,520,177.07
Phase foaming dry 2 of machine Shandong Refrigerator	10,500,000.00		5,810,000.00				yet Not completed	funding-Self	5,810,000.00
Power Shandong of cable Refrigerator	65,000,000.00		8,198,477.08				yet Not completed	funding-Self	8,198,477.08
Production Shandong of line Refrigerator	50,850,000.00		4,846,154.00				yet Not completed	funding-Self	4,846,154.00
press Punch Air Guangdong of conditioning (sets 4 (	8,160,271.90		7,369,800.00				yet Not completed	funding-Self	7,369,800.00
OAK presses punch Air Guangdong of conditioning (units 2 (	10,196,728.10		9,208,988.09				yet Not completed	funding-Self	9,208,988.09
line painting Spray gas natural and of works pipeline Plastic Rongsheng		3,647,228.00					be To scrapped	funding-Self	3,647,228.00
line Production Kelon Shangqiu of		7,770,917.67					be To scrapped	funding-Self	7,770,917.67
Others		66,651,943.58	1,151,090,119.83	579,379,880.55	456,298,134.56				182,064,048.30
Total		79,670,089.25	1,225,354,162.71	583,422,723.55	456,298,134.56				265,303,393.85

:progress in constructions in movements of Particulars

• and increase represented mainly progress in constructions in movements ,year the During 1 .subsidiaries s'Company the of lines production the in decrease
• .progress in constructions for interests of capitalization no was there ,year the During 2

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (progress in Constructions 13.

progress in constructions of impairment for Provision) 3(

Item	Opening balance	Additions year the in	Reductions year the in	Closing balance	for Reasons provision
Spray line painting natural and pipeline gas of works Rongsheng Plastic	3,554,918.00			3,554,918.00
Production line Shangqiu of Kelon	7,770,917.67			7,770,917.67
total	11,325,835.67			11,325,835.67

assets Intangible 14.

assets intangible of Particulars) 1(

item		opening balance	additions year the in	reductions year the in	Closing balance
1.	cost total	1,238,313,124.90	49,487,144.55	2,680,994.68	1,285,119,274.77
	Land) 1( rights use	607,159,874.40	44,047,000.43		651,206,874.83
	) 2( Trademarks	524,409,198.95			524,409,198.95
	3( how-Know)	69,633,122.63			69,633,122.63
	Others) 4(	37,110,928.92	5,440,144.12	2,680,994.68	39,870,078.36
	total 2. accumulated amortization	406,222,839.61	21,973,498.51	1,453,287.96	426,743,050.16
	Land) 1( rights use	195,428,416.88	12,391,853.60		207,820,270.48
	) 2( Trademarks	134,130,255.55			134,130,255.55
	3( how-Know)	44,504,152.41	5,834,723.96		50,338,876.37
	Others) 4(	32,160,014.77	3,746,920.95	1,453,287.96	34,453,647.76
	total 3. amount net intangible of assets	832,090,285.29			858,376,224.61
	Land) 1( rights use	411,731,457.52			443,386,604.35
	) 2( Trademarks	390,278,943.40			390,278,943.40
	3( how-Know)	25,128,970.22			19,294,246.26
	Others) 4(	4,950,914.15			5,416,430.60
T	otal 4. provision for impairment	336,593,406.80			336,593,406.80
	Land) 1( rights use	50,012,843.19			50,012,843.19
	) 2( Trademarks	286,061,116.40			286,061,116.40
	3( how-Know)
	Others) 4(	519,447.21			519,447.21
T	otal 5. carrying of amount
	intangible assets	495,496,878.49			521,782,817.81
	Land) 1( rights use	361,718,614.33			393,373,761.16
	) 2( Trademarks	104,217,827.00			104,217,827.00
	3( how-Know)	25,128,970.22			19,294,246.26
	Others) 4(	4,431,466.94			4,896,983.39

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (assets Intangible 14.

:assets intangible of Particulars) 2(

• 2012, For 21,973,498.51.RMB to amounted assets intangible of amortization 2013, For 1 24,248,227.22.RMB to amounted assets intangible of amortization
• .pledged were rights use land no ,year the of end the at As 2
• and amortized not were they ,trademarks the of lives useful the of uncertainty to Owing 3 .test impairment an after trademarks for provided was impairment for provision no
• rights use land of addition the to attributable mainly was assets intangible in Increase 4 :rights use land of Certificate (Company the of subsidiary a ,Refrigerator Shandong by by rights use land of addition the and) 00377 and 00364 .Nos) 2013 (Pingguoyong :rights use land of Certificate (Company the of subsidiary a ,conditioning-Air Shandong .(00359 .No) 2013 (Pingguoyong

expenses prepaid term-Long 15.

item	opening balance	additions year the in	amortization year the in	other reductions	Closing balance	reasons other of reductions
Other	827,939.58	5,555,231.37	1,382,115.88		5,001,055.07
total	827,939.58	5,555,231.37	1,382,115.88		5,001,055.07

liabilities tax deferred and assets tax Deferred 16.

:offsetting after liabilities tax deferred and assets tax deferred of amount Net

taxable or deductible corresponding and offsetting after liabilities tax or assets tax Deferred) 1( offsetting after differences temporary

item	Deferred tax or assets liabilities after offsetting at the the of end reporting period	Deductible taxable or temporary differences after offsetting at the the of end reporting period	Deferred tax or assets liabilities after offsetting the at beginning the of reporting period	Deductible taxable or temporary differences after offsetting the at beginning the of reporting period
Deferred :assets tax
Provision assets for
impairment	34,090,504.40	156,382,380.24	5,009,313.49	31,958,489.21
Financial assets for-held
trading	) 6,671,594.15	) ( 33,259,961.00 (	20,853.33	139,022.22
Others	9,197,950.77	50,657,563.61	2,264,521.20	15,096,808.06
subtotal	36,616,861.02	173,779,982.85	7,294,688.02	47,194,319.49

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (liabilities tax deferred and assets tax Deferred 16.

liabilities tax deferred and assets tax deferred of offsetting for Summary) 2(

		amount
	amount	off set
	off set	for previous
item	for year the	year
Financial assets for-held trading-	) 6,671,594.15 (	20,853.33

the in expire will assets tax deferred of as recognized not are that losses tax Deductible) 3( years following

year	Closing balance	opening balance	remark
2014	6,693,911.06	117,640,611.32
2015	10,118,229.35	15,226,563.21
2016	6,552,610.10	129,600,742.65
2017	81,862,637.32	61,275,995.35
2018	51,479,787.23
Infinite	50,760,547.10	51,806,891.39
total	207,467,722.16	375,550,803.92

differences temporary deductible and differences temporary taxable of Summary) 4(

item	amount
Financial assets for-held trading-	) 33,259,961.00 (
Provision bad for on debts accounts receivable	2,697,364.36
Provision for debts bad other on receivables	90,476,204.88
Provision for declines in of values inventories	2,116,661.83
Impairment provision fixed for assets	52,322,479.17
Impairment provision for constructions in progress	3,554,918.00
Impairment provision for intangible assets	5,214,752.00
Others	50,657,563.61
total	173,779,982.85

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

impairment asset for Provision 17.

				reduction	year the for
item		opening balance	addition year the in	reversal	off-Write	Closing balance
1. 2.	1*debts bad for Provision Provision decline for	573,522,074.52	36,026,609.25	137,561,261.20	97,376,079.35	374,611,343.22
3.	value in inventory of Provision for impairment of long equity term-	86,284,568.85	28,875,777.54	425,973.65	2,635,797.79	112,098,574.95
4.	investments Provision for impairment fixed of	11,000,000.00				11,000,000.00
5.	assets Provision for impairment of construction in	127,397,721.24	10,254,633.97	3,424,579.51	15,943,472.26	118,284,303.44
6.	progress Provision for	11,325,835.67				11,325,835.67
	impairment of intangible assets	336,593,406.80				336,593,406.80
total		1,146,123,607.08	75,157,020.76	141,411,814.36	115,955,349.40	963,913,464.08

Company the of debts bad for provision the in change net the between 125,043.00RMB of difference The 1* accounts of receipt the to attributable was" loss debt bad – assets on losses impairment "the and year the for .period during periods prior in off written Company the of subsidiary a of receivable

borrowings term-Short 18.

:borrowings term-short of Classification) 1(

item	Closing balance	opening balance
1* Secured borrowings	191,681,513.02	30,309,453.94
total	191,681,513.02	30,309,453.94

borrowings term-short of classification of Particulars

• of receivable accounts factoring the from borrowings secured represented borrowings secured The 1* to amounted Euro and 27,810,250.30, to amounted dollars US which of ,subsidiaries s'Company the 2,628,040.69.
• have but due are that borrowings term-short no had Company the ,period the of end the at As) 2( .repaid been not

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

trading-for-held liabilities Financial 19.

Item	Closing balance	Opening balance
Derivative financial liabilities	4,645.00	164,231.22
Total	4,645.00	164,231.22

:trading-for-held liabilities financial of Particulars

with Company the by into entered contracts forward exchange foreign undue represented mainly This difference the on based trading-for-held liabilities or assets financial as recognized were that banks as rate exchange foreign future the and contracts exchange foreign undue the of quotation the between 2013. December 31 at

payable Notes 20.

Category	Closing balance	Opening balance
Bank acceptance notes	1,235,561,696.44	1,270,078,312.63
Trade acceptance notes	155,536,942.24	162,773,897.45
Total	1,391,098,638.68	1,432,852,210.08

:payable notes of Particulars

• more or 5% holding shareholders to due amount no was there 2013, December 31 at As 1 31 at As .payable notes of balance the in Company the of shares voting the of) 5% including( (5% including (more or 5% holding shareholders to due amount no was there 2012, December .payable notes of balance the in Company the of shares voting the of
• as payable notes of balance the in parties related to due amount of details for 8 note see Please 2 .year the of end the at

payable Accounts 21.

payable accounts of analysis Ageing) 1(

Ageing	Closing balance	Opening balance
Within year one	3,291,382,468.75	2,197,488,131.14
Over year one	189,127,899.41	137,937,805.33
Total	3,480,510,368.16	2,335,425,936.47

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (payable Accounts 21.

• (5% including (5% holding shareholders to due amount no was there 2013, December 31 at As) 2( 31 at As .payable accounts of balance the in Company the of shares voting the of more or more or) 5% including (5% holding shareholders to due amount no was there 2012, December .payable accounts of balance the in Company the of shares voting the of
• payable accounts of balance the in parties related to due amount of details for 8 note see Please) 3( .year the of end the at as

customers from Advances 22.

customers from advances of analysis Age) 1(

Ageing	Closing balance	Opening balance
Within year one	821,066,394.32	780,456,731.80
Over year one	85,965,112.53	56,609,039.79
Total	907,031,506.85	837,065,771.59

• (5% including (5% holding shareholders to due amount no was there 2013, December 31 at As) 2( at As .customers from advance of balance the in Company the of shares voting the of more or or) 5% including (5% holding shareholders to due amount no was there 2012, December 31 .customers from advances of balance the in Company the of shares voting the of more
• from advances of balance the in parties related to due amount of details for 8 note see Please) 3( .year the of end the at as customers

payables benefits Employee 23.

Item	Opening balance	Additions in year the	Reductions in year the	Closing balance
Wages 1. salaries and ,bonuses ,
allowances and subsidies	214,850,180.36	1,705,436,427.93	1,695,718,151.64	224,568,456.65
Staff 2. welfare	4,885,988.44	95,472,760.33	95,397,914.12	4,960,834.65
Social 3. insurance	1,956,760.93	234,281,576.86	232,803,754.18	3,434,583.61
Housing 4. provident funds	137,904.85	55,582,627.39	56,030,145.62	) (309,613.38
5. union Labor and funds employee
education funds	1,778,148.96	15,162,179.68	15,562,860.06	1,377,468.58
6. Termination benefits		42,273,138.83	39,962,303.54	2,310,835.29
Others 7.	53,701.02	1,268,613.42	1,321,866.15	448.29
Total	223,662,684.56	2,149,477,324.44	2,136,796,995.31	236,343,013.69

:payables benefits employee of Particulars

• .payables benefits employee in included payables defaulted no were There) 1(
• calculated :benefits employee for amount and time payout expected of respect in Arrangements) 2( .month following the in paid and month current the in

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

payable Taxes 24.

	item Tax	Closing balance	Opening balance
-Value	tax added	) 238,344,290.39	) ( 87,895,577.02 (
Business	tax	1,395,697.58	401,621.41
Enterprise	income tax	32,290,051.16	2,021,491.04
Individual	income tax	3,750,642.66	2,237,608.84
City	maintenance and construction tax	3,515,761.30	4,218,708.41
Real	tax estate	8,770,019.08	8,637,222.75
Land	tax use	4,976,487.69	4,443,808.55
	Education surcharges	2,450,605.56	2,844,675.81
	Embankment maintenance fee	1,956,979.56	2,194,774.55
Others		22,471,514.80	11,900,847.30
Total		) 156,766,531.00	) ( 48,994,818.36 (
nterests	payable
Item		Closing balance	Opening balance
Interests	payable short for term- borrowings		202,930.49
Total			202,930.49
	Dividends payable
Name		Closing balance	Opening balance
Yingleng Beijing	Group ( .Ltd .,Co) Xuehua Group Company Limited	2,067.02 9,000,000.00	2,067.02
Total		9,002,067.02	2,067.02
ther	payables
) 1(	Ageing analysis other of payables
	Ageing	Closing balance	Opening balance
	Within year one	1,513,321,725.49	1,336,620,886.45
	Over year one	217,937,328.91	244,673,606.36

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (payables Other 27.

• including (5% holding shareholders to due amount no was there 2013, December 31 at As) 2( 31 at As .payables other of balance the in Company the of shares voting the of more or) 5% more or) 5% including (5% holding shareholders to due amount no was there 2012, December .payables other of balance the in Company the of shares voting the of
• as payables other of balance the in parties related to due amount of details for 8 note see Please) 3( .year the of end the at

year one over of age with payables other significant of Particulars) 4(

Name	Amount	Reasons being for outstanding	Remark
Tianjin Taijin Yunye Company	65,000,000.00	Current	Specific third party
Limited Tianjin (" ("Taijin		account	Company amount
Zhuhai Longjia	28,316,425.03	Current account	Specific third party Company amount
Jiangxi Greencool	13,000,000.00	Current account	Greencool Companies
Zhuhai Defa	7,362,170.00	Current account	Specific third party Company amount

liabilities current Other 28.

Item	Closing balance	Opening balance	Reasons the for balance
Installation fees	144,962,337.71	161,354,404.01	Installation fee provided for yet not but in paid to relation sold goods
Sales discounts	249,743,671.30	255,481,161.65	Incurred not but settled yet
Transportation fees	10,216,284.52	2,907,099.51	Incurred not but settled yet
fees Audit	3,437,719.64	3,392,034.86	Annual fee audit
Marketing fees	22,559,489.79	47,851,709.13	Incurred not but settled yet
Amounts payable	49,265,333.00	23,177,516.32	Incurred not but settled yet
fees Power	20,565,524.92	7,835,376.59	Incurred not but settled yet
Agency fees	5,079,051.90	8,730,560.08	Incurred not but settled yet
Others	68,207,879.64	55,676,933.77	Incurred not but settled yet
Total	574,037,292.42	566,406,795.92

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

Provisions 29.

Item	Opening balance	Additions in year the	Reductions in year the	Closing balance
Pending litigation	4,664,309.56		36,712.41	4,627,597.15
Provision for warranties *	307,198,172.98	53,439,948.27	4,107,488.53	356,530,632.72
Total	311,862,482.54	53,439,948.27	4,144,200.94	361,158,229.87

warranty the During .fund guarantee quality product estimated the represented warranties for Provision the to According .concerned customers the to service warranty free a offer will Company the ,period the on based provided and calculated were costs warranty the ,data past and experience s'industry .unit per fee repair average the and warranty offered of years remaining

liabilities current-non Other 30.

Item	Closing balance	Opening balance
Deferred income	56,011,769.90	56,872,390.49
Total	56,011,769.90	56,872,390.49

:follows as are income deferred of Particulars

Item	Closing balance	Opening balance
State debenture projects for technical advancement and
industry upgrade	21,450,000.00	21,450,000.00
Production technology reform project energy for saving-
household SBS size-large refrigerator	1,925,000.00	2,375,000.00
Production capacity expansion and technology renovation project low for carbon- energy , saving- chlorine , free-
refrigerator	2,426,666.67	2,706,666.67
Others	30,210,103.23	30,340,723.82
Total	56,011,769.90	56,872,390.49

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

capital Share 31.

2013

Categories shares of	Opening balance	Additions in year the	Reductions year the in	Closing balance
with Shares restriction trading of	612,316,909.00		612,316,909.00
Including State : owned- legal person
shares	612,316,909.00		612,316,909.00
Shares without restriction trading of	741,737,841.00	612,316,909.00		1,354,054,750.00
Including RMB : Ordinary shares	282,148,033.00	612,316,909.00		894,464,942.00
Foreign shares listed
PRC of out	459,589,808.00			459,589,808.00
Total number shares of	1,354,054,750.00			1,354,054,750.00

by held Company the of shares A restricted 612,221,909 the to attributable was year the for Changes .trading for listed and moratorium selling to subject longer no being Conditioning Air Hisense Qingdao

2012

Categories shares of	Opening balance	Additions year the in	Reductions year the in	Closing balance
with Shares restriction trading of	612,316,909.00			612,316,909.00
Including State : owned- legal person
shares	612,316,909.00			612,316,909.00
Shares without restriction trading of	741,737,841.00			741,737,841.00
Including RMB : Ordinary shares	282,148,033.00			282,148,033.00
Foreign shares listed
PRC of out	459,589,808.00			459,589,808.00
Total number shares of	1,354,054,750.00			1,354,054,750.00

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

reserve Capital 32.

reserve capital in Changes) 1(

2013

Item	Opening balance	Additions in year the	Reductions year the in	Closing balance
Share premium	1,968,114,175.93			1,968,114,175.93
Other capital reserve	133,536,211.03	1,754,011.95	4,298,798.14	130,991,424.84
Total	2,101,650,386.96	1,754,011.95	4,298,798.14	2,099,105,600.77
2012
Item	Opening balance	Additions year the in	Reductions year the in	Closing balance
Share premium	1,968,114,175.93			1,968,114,175.93
Other capital reserve	128,814,882.33	4,721,328.70		133,536,211.03
Total	2,096,929,058.26	4,721,328.70		2,101,650,386.96

:reserve capital of Particulars) 2(

the into 1,501,548.00RMB of incentive equity of transfer the represented year the in Additions other in change to due 252,463.95RMB of reserve capital in increase the and; reserve capital shareholding in dilution a to attributable was year the for Decrease .Compressor Huayi of equity .Compressor Huayi of offering seasoned the from arising

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

reserve Surplus 33.

2013

Item	Opening balance	Additions in year the	Reductions in year the	Closing balance
Statutory surplus reserve	145,189,526.48			145,189,526.48
Total	145,189,526.48			145,189,526.48
2012
Item	Opening balance	Additions in year the	Reductions in year the	Closing balance
Statutory surplus reserve	145,189,526.48			145,189,526.48
Total	145,189,526.48			145,189,526.48

profits Retained 34.

2013

Item	for Ratio appropriation or distribution	Amount for year the	Amount for previous year
Retained at profits of end the previous period		) 2,099,392,002.85	) ( 2,817,156,683.25 (
:Add Adjustment of retained at profits
the beginning of year the
Retained profits the at beginning the of
period		) 2,099,392,002.85	) ( 2,817,156,683.25 (
Net :Add profits the for period
attributable the to shareholders
of parent the		1,239,005,051.61	717,764,680.40
:Less Appropriation of statutory surplus
reserve
Ordinary shares dividends
payable
Retained profits the at of end period the		) 860,386,951.24	) ( 2,099,392,002.85 (

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (profits Undistributed 34.

2012

	for Ratio
Item	appropriation or distribution	Amount for year the	Amount for previous year
Retained at profits of end the previous period		) 2,817,156,683.25	) ( 3,044,171,810.12 (
:Add Adjustment of retained at profits the beginning of year the
Retained profits the at beginning of period the		) 2,817,156,683.25	) ( 3,044,171,810.12 (
Net :Add profits the for period
attributable the to shareholders of parent the		717,764,680.40	227,015,126.87
:Less Appropriation of statutory surplus reserve
Ordinary shares dividends
payable
Retained profits end the at
of period the		) 2,099,392,002.85	) ( 2,817,156,683.25 (

costs operating and revenue Operating 35.

costs operating and revenue Operating) 1(

Item	Amount for year the	Amount for previous year
Revenue from principal operations	22,186,925,492.98	17,353,776,682.71
Revenue from other operations	2,173,095,815.49	1,605,138,627.38
Total operating revenue	24,360,021,308.47	18,958,915,310.09
of Costs principal operations	17,092,033,966.98	13,562,752,511.56
Costs other of operations	1,947,803,933.29	1,471,281,005.12

15,034,033,516.68 19,039,837,900.27 costs operating Total

(products by (operations Principal) 2(

	Amount year the for		Amount	previous for year
Products	Operating revenue	Operating costs	Operating revenue	Operating costs
1. Refrigerators	10,105,981,743.41	7,719,316,064.09	8,461,166,469.00	6,468,159,644.37
Air 2. conditioners-	9,233,763,216.95	7,172,078,184.60	6,665,134,751.43	5,317,136,777.28
Others 3.	2,847,180,532.62	2,200,639,718.29	2,227,475,462.28	1,777,456,089.91
Total	22,186,925,492.98	17,092,033,966.98	17,353,776,682.71	13,562,752,511.56

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (costs operating and revenue Operating 35.

(regions by (operations Principal) 3(

	Amount	year the for		previous for year
Region	Operating revenue	Operating costs	Operating revenue	Operating costs
Domestic	15,623,701,445.80	11,244,309,969.38	11,534,718,459.71	8,347,357,581.94
Overseas	6,563,224,047.18	5,847,723,997.60	5,819,058,223.00	5,215,394,929.62
Total	22,186,925,492.98	17,092,033,966.98	17,353,776,682.71	13,562,752,511.56

Company the of customers five top the from revenue Operating) 4(

2013	Amount for	Percentage the of total revenue from principal operations the of
.No	year the	Company (%)
1 Top	2,433,240,754.40	10.97
2 Top	1,526,834,995.72	6.88
3 Top	935,634,691.89	4.22
4 Top	902,621,638.67	4.07
5 Top	553,611,995.86	2.50

28.64

2012

.No	Amount for year the	Percentage the of total revenue from principal operations the of Company (%)
1 Top	1,601,984,128.66	9.23
2 Top	1,360,330,549.34	7.84
3 Top	986,464,145.61	5.68
4 Top	535,475,018.23	3.09
5 Top	368,338,598.27	2.12
Total	4,852,592,440.11	27.96

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

surcharges and tax Business 36.

Item	of Basis calculation	Amount for year the	Amount for previous year
Business tax	5%	1,780,644.55	3,118,073.06
City maintenance and construction tax	1%-7%	56,879,211.19	39,636,367.21
Education surcharges	3%	38,714,646.12	27,185,066.18
Others		2,265,032.83	35,279,196.63
Total		99,639,534.69	105,218,703.08

expenses Financial 37.

Item	Amount for year the	Amount for previous year
Interest *expenses	572,549.35	29,818,343.17
Less Interest : incomes	3,164,480.55	3,051,399.68
Discounted notes	1,552,073.11	12,359,540.38
Loss foreign on exchange	28,783,994.95	8,723,293.92
Others	) 55,218,524.13	) ( 8,850,185.93 (
Total	) 27,474,387.27 (	38,999,591.86

.years five within repayable wholly borrowings bank on interests were 2012 and 2013 for expenses Interest*

losses impairment Asset 38.

Item	Amount for year the	Amount for previous year
Bad 1. loss debt	) 101,659,694.95 (	18,616,552.23
2. in Decline of value inventories	28,449,803.89	9,610,334.99
3. Impairment loss fixed on assets	6,830,054.46	12,669,787.61

40,896,674.83 (66,379,836.60) Total

value fair in changes from arising) loss(/Gain 39.

Sources gain of (loss(/	Amount for year the	Amount for previous year
Financial assets for-held trading- Including : from Gain changes fair in of value derivative	56,436,725.88	) 23,109,402.77 (
financial instruments	56,436,725.88	) 23,109,402.77 (
Financial liabilities for-held trading-	159,586.22	6,471,890.55
Total	56,596,312.10	) 16,637,512.22 (

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

gain Investment 40.

gain investment of Summary) 1(

Item	Amount for year the	Amount for previous year
from Gain term-long equity investment — cost the
method	4,750,000.00	3,800,000.00
from Gain term-long equity investment — equity the
method	299,785,829.53	190,097,006.83
from Gain disposal of term-long equity investment *	23,335,449.54	98,395,591.58
from Gain disposal of financial assets for-held trading-	19,153,785.48	42,961,835.26
Total	347,025,064.55	335,254,433.67

those represented year the for investment equity term-long of disposal from income Investment* .Compressor Huayi of offering seasoned the from arising

method cost the — investment equity term-long from Gain) 2(

Investee	Amount for year the	Amount for previous year
Hisense International Marketing	4,750,000.00	3,800,000.00
Total	4,750,000.00	3,800,000.00

:method equity the — investment equity term-long from Gain) 3(

Investee	Amount for year the	Amount for previous year
Huayi Compressor	6,029,708.70	6,634,219.63
Hisense Whirlpool	1,297,493.73	3,430,870.26
Attend	) 116,634.72	) ( 143,000.95 (
Hisense Hitachi	292,575,261.82	180,174,917.89
Total	299,785,829.53	190,097,006.83

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

expenses operating-non and income operating-Non 41.

income operating-Non

Item	Amount for year the	Amount for previous year
Total from gain disposal non of current- assets	12,010,056.34	1,853,144.93
Including : from Gain disposal fixed of assets	12,010,056.34	1,853,144.93
Government grants	82,700,643.38	54,767,674.18
Others	20,129,664.74	8,031,065.74
Total	114,840,364.46	64,651,884.85

:follows as are year the during grants government of Details

Item	Amount for year the	Amount for previous year
1. Government grants related assets to
Production technology reform project energy for saving-
household SBS size-large refrigerator 1*	450,000.00	450,000.00
Production capacity expansion and technology renovation
project low for carbon- energy , saving- chlorine , free-
refrigerator 2*	280,000.00	93,333.33
Government grants related other to assets	130,620.59	1,814,099.44
Subtotal	860,620.59	2,357,432.77
2. Government grants related income to
Financial subsidies for promotion high of efficiency
-energy -air saving conditioners		31,710,000.00
Government incentive 3*awards	35,000,000.00
Other government grants	46,840,022.79	20,700,241.41
Subtotal	81,840,022.79	52,410,241.41
Total	82,700,643.38	54,767,674.18

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (expenses operating-non and income operating-Non 41.

(continued (income operating-Non

• of subsidiary the to granted 3,000,000.00RMB of award project the represented grants government The 1* the Circulating "under Shunde ,Foshan of Bureau Financial the by Refrigerator Guangdong Company the Supplementary and Projects Tender Renovation Technology for Support Provincial Guangdong of Circular to granted 1,500,000.00RMB of award project the and ,)391 .No] 2007 [Mao Jing Fo" (2007 in Projects ,Foshan of Bureau Trade and Economic the by Refrigerator Guangdong Company the of subsidiary the Grant to Consenting on Foshan ,Shunde of Government s'People the of Office the by Reply "under Shunde Electrical Xinbao Guangdong Including Enterprises to Outlay Technology and Science for Subsidy Regional commenced was project The .)114 .No] 2008 [Han Ban Fu Shun" (2007 in .Ltd .,Co Holdings Appliances has Refrigerator Guangdong 2008, May and April In 2009. October in ended and 2007 October from and 3,000,000.00RMB of grants government project the receiving after income deferred recognized the in for accounted were received amounts the and ,Company the from respectively 1,500,000.00RMB Guangdong 2008, In .years 10 of period a over income operating-non as Refrigerator Guangdong of books amount the in income 2009, In 325,000.00.RMB of amount the in income recognized has Refrigerator .recognized was 450,000.00RMB of amount the in income 2010, In .recognized was 450,000.00RMB of of amount the in income 2012, In .recognized was 450,000.00RMB of amount the in income 2011, In the and ,recognized was 450,000.00RMB of amount the in income 2013, In .recognized was 450,000.00RMB .income deferred as recognized was 1,925,000.00RMB of amount remaining
• Of Commission the by ,Company the of subsidiary a ,Mould Hisense to granted were grants government The 2* Economy Of Commission the of Approval "the under Municipal Qingdao of Informatization and Economy Government Central the by Investment for Application the on Municipal Qingdao of Informatization and Renovation Technology the by 2012 Enterprises Industrial Medium-to-Small of Reforms Technology on Qing" (.Ltd .,Co Mould Hisense Qingdao of Moulds Intelligent Sophisticated Manufacturing for Project sophisticated manufacturing for project renovation technology the in use for) 5 .No] 2012 [Zi Pi Xin Jing income deferred as recognized were project the for grants government The 2012. in moulds intelligent month the from amount the recognized has Mould Hisense 2012. August in Mould Hisense by receipt upon recognized has Mould Hisense 2012, In .years 10 of period a over income operating-non as receipt after amount the in income 2013, In .year the for item the to relation in 93,333.33RMB of amount the in income as recognized was 2,426,666.67RMB of amount remaining the and ,recognized was 280,000.00RMB of .income deferred
• Yangzhou by receivable awards incentive government of recovery the represented grants government The 3* .Greencool Yangzhou by embezzled previously Kelon

Item	Amount for year the	Amount for previous year
Total on loss disposal non of current- assets	11,713,968.79	2,711,055.26
Including on Loss : disposal fixed of assets	11,713,968.79	2,711,055.26
Others	5,822,748.41	4,682,638.36
Total	17,536,717.20	7,393,693.62

expenses operating-Non

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

expenses tax Income 42.

Item	Amount for year the	Amount for previous year
Current income tax	82,941,113.95	14,219,306.52
Including PRC : enterprise income tax	74,776,381.83	12,561,887.81
Hong Kong tax profit	8,164,732.12	1,657,418.71
Deferred tax expenses	) 29,322,173.00	) ( 3,670,871.80 (
Total	53,618,940.95	10,548,434.72

presented profit total and rates tax applicable the on based calculated tax income from Reconciliation :below listed is expenses tax income the to statements financial consolidated the in

Item	Amount for year the	Amount for previous year
Total profits	1,322,748,313.03	742,854,008.07
Income tax expenses calculated at statutory or ( applicable (
rates tax	330,687,078.27	185,713,502.02
Tax of effect different rate applicable to subsidiaries	) 67,654,153.12	) ( 6,761,202.70 (
Adjustment of year prior income the in tax current year	168,511.73	) 168,593.35 (
Gain ) loss(/ attributable jointly to controlled entities and
associates	) 74,946,457.38	) ( 47,524,251.69 (
Non taxable- income	) 38,947,457.51	) ( 8,007,318.42 (
-Non deductible expenses		4,329,272.07
Utilization of of loss tax previous periods	) 108,348,834.68 ) (	140,901,199.46 (
Unused tax not losses recognized as deferred assets tax	12,660,253.64	23,868,226.25
Others
Income tax expenses	53,618,940.95	10,548,434.72

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

share per earnings diluted and basic of Calculation 43.

Item		Amount for year the	Amount for previous year
profits Net attributable to ordinary
shareholders the of Company the of
reporting period Non recurring- item attributable to ordinary	1P	1,239,005,051.61	717,764,680.40
shareholders the of Company the of
reporting period	F	161,100,668.70	120,583,896.18
profits Net non after recurring- item
attributable to ordinary shareholders of
the Company the of reporting period	F1-P=2P	1,077,904,382.91	597,180,784.22
Effect dilutive of on events profits net
attributable to ordinary shareholders of
the Company	3P
Effect dilutive of on events profits net
non after recurring- item attributable to
ordinary shareholders the of Company 4P Weighted average of number ordinary
shares	S	1,354,054,750.00	1,354,054,750.00
:Add Additional weighted average number
ordinary of shares assuming
conversion of dilutive all potential
ordinary shares ordinary to shares	1X
Weighted average of number ordinary
shares the in calculation diluted of
earnings share per	1X+S=2X	1,354,054,750.00	1,354,054,750.00
Basic earnings share per attributable to
ordinary shareholders the of Company Basic earnings share per attributable to	S1/P=1Y	0.92	0.53
ordinary shareholders the of Company
non after recurring- items	S2/P=2Y	0.80	0.44
Diluted earnings share per attributable to
ordinary shareholders the of Company	1+P=(3Y 2X/)3P	0.92	0.53
Diluted earnings share per attributable to
ordinary shareholders the of Company
non after recurring- items	2+P=(4Y 2X/)4P	0.80	0.44

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

incomes comprehensive Other 44.

Item	Amount for year the	Amount for previous year
1. Recognition share of other of comprehensive incomes of the investee based equity on method Less Income : effect tax arising from recognition share of	252,463.95	72,876.70
other of comprehensive incomes the of investee
based equity on method
Net :Add amount accounted for other as comprehensive
incomes the in previous period and transferred to and profit the in loss current period	) 4,298,798.14 (
Subtotal	) 4,046,334.19 (	72,876.70
2. Difference on translation foreign of currency financial
statements	228,648.92	32,034.65
Net :Less amount transferred (/gain to upon) loss disposal
foreign of operations the in current period		15,599,474.59
Subtotal	228,648.92 )	15,567,439.94
Other 3. Less Income : effect tax arising other from items under
other comprehensive income
Net amount other of items under other
comprehensive of income previous period
transferred the in current period
Subtotal
Total	) 3,817,685.27	) ( 15,494,563.24 (
otes cash to flows statement
1( Cash) received relating other to operating activities
	Amount for	Amount for
Item	year the	previous year
Interest incomes	3,164,480.55	3,051,399.68
Government grants	81,840,022.79	70,301,055.69
Others	1,078,183,928.53	603,711,012.38

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (statement flows cash to Notes 45.

activities operating other to relating paid Cash) 2(

Item	Amount for year the	Amount for previous year
Cash payments for general and administrative
expenses	418,170,115.12	357,274,718.00
Cash payments selling for and distribution expenses	1,997,419,348.86	1,512,573,756.27
Bank charges	8,486,756.11	6,701,653.21
Others	387,996,879.29	186,483,811.17
Total	2,812,073,099.38	2,063,033,938.65

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

statement flows cash on information Supplementary 46.

statement flows cash on information Supplementary) 1(

Supplementary information	Amount for year the	Amount for previous year
1. R econciliation of profit net cash to flows from
operating :activities
profit Net	1,269,129,372.08	732,305,573.35
:Add Provision assets for impairment	) 66,379,836.60 (	40,896,674.83
Depreciation fixed of assets depletion , oil of gas and assets and depreciation of productive biological
assets	345,389,983.33	353,430,052.12
Amortization of intangible assets	21,973,498.51	24,248,227.22
Amortization of term-long prepaid expenses	1,382,115.88	75,267.23
on Loss disposals fixed of ,assets intangible other and term-long assets Gain ( denoted "in ("bracket on Loss scrapping fixed of assets	) 296,087.55 (	857,910.33
Gain( denoted "in ("bracket
on Loss in change value fair
Gain( denoted "in ("bracket	) 56,596,312.10 (	16,637,512.22
Financial expenses Gain ( denoted "in ("bracket	572,549.35	42,177,883.55
Investment Gain (loss denoted "in ("bracket Decrease in deferred assets tax	) 347,025,064.55	) ( 335,254,433.67 (
Increase( denoted "in ("bracket Increase in deferred tax liabilities Decrease( denoted "in ("bracket	) 29,322,173.00	) ( 3,670,871.80 (
Decrease in inventory Increase ( in denoted bracket " ) ("	757,918,744.31	) ( 195,486,406.67 (
Decrease in operating receivables
Increase( denoted "in ("bracket Increase in operating payables	) 820,488,840.55	) ( 1,220,594,730.58 (
Decrease( denoted "in ("bracket Others	658,377,889.04	1,642,570,120.00
Net flows cash from operating activities 2. S ignificant investing and financing activities	218,798,349.53	1,098,192,778.13
not involving cash receipts and :payment
Liabilities converted into equity
Convertible company debentures within due year one
Fixed assets under finance leases
Net 3. movement cash in cash and equivalents :
Cash the at of end period the	472,987,177.54	513,661,376.53
Less Cash : the at beginning of period the	513,661,376.53	396,814,919.98
Add Cash : equivalents the at of end period the
Less Cash : equivalents the at beginning of period the Net increase cash in cash and equivalents	) 40,674,198.99 (	116,846,456.55

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (statement flows cash on information Supplementary 46.

period reporting the during units operating other and subsidiaries of disposal on Information) 2(

		:Unit 0000'RMB
Item	Amount for year the	Amount for previous year
Information on disposal of subsidiaries and
other operating companies
1. Consideration of disposal of subsidiaries other and
operating companies		6,858.00
Cash 2. cash and equivalents received from disposal
of subsidiaries other and operating companies		6,858.00
Less Cash : cash and equivalents by held
subsidiaries other and operating companies
3. cash Net received from disposal of subsidiaries and
other operating companies		6,858.00
Net 4. of assets subsidiaries disposed		) (17,494.48
Current assets		511.58
Non current- assets		2,131.97
Current liabilities		20,138.02
Non current- liabilities

equivalents cash and cash of Details) 3(

	Amount for	Amount for
Item	year the	previous year
Cash 1.
Including Cash : hand on	2,857.60	6,911.06
Bank deposit that readily are available
for payment	472,984,319.94	513,654,465.47
Other that cash readily are available
for payment
Cash 2. equivalents
Including Bond : investments within due three months
Cash 3. cash and equivalents as end the at
of period the	472,987,177.54	513,661,376.53

assets current Net 47.

Item	Closing balance	Opening balance
Current (assets consolidated (	7,747,383,324.25	5,930,166,101.14
Less Current : liabilities ( consolidated (	8,364,201,568.24	6,958,391,755.74
Net current (Assets consolidated (	) 616,818,243.99 ) (	1,028,225,654.60 (
Current the (assets (parent	6,511,109,633.34	4,730,456,072.49
Less Current : liabilities the ( (parent	7,247,032,125.40	5,672,829,625.08
Net current the (assets (parent	) 735,922,492.06	) ( 942,373,552.59 (

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

liabilities current less assets Total 48.

Item	Closing balance	Opening balance
Total (assets consolidated (	11,964,709,290.58	9,200,334,640.73
Less Current : liabilities ( consolidated (	8,364,201,568.24	6,958,391,755.74
Total less assets current liabilities ( consolidated (	3,600,507,722.34	2,241,942,884.99
Total the (assets (parent	10,451,187,516.52	8,278,917,143.79
Less current : liabilities the ( (parent	7,247,032,125.40	5,672,829,625.08
Total less assets current liabilities the ( (parent	3,204,155,391.12	2,606,087,518.71

information Segment 49.

lines business both of mixture a by organized are which divisions by business its manages Group The the ,assessment performance and allocation resource of purpose the For .locations geographical and segment the and ,separately segment business each of results operating the manages management .segments reporting the of profits the on based assessed are results

liabilities and assets and loss or profit Segment) 1(

				segment-Inter
for Amount period current	Refrigerators	Air conditioners-	Others	elimination	Total
1. from Revenue sales external	10,105,981,743.41	9,233,763,216.95	2,847,180,532.62		22,186,925,492.98
2. from Revenue segment-Inter			986,201,863.65	(986,201,863.65)
from Gain 3. in investment associates jointly and
controlled entities	7,327,202.43	292,575,261.82	(116,634.72)		299,785,829.53
Depreciation 4. and amortization	187,816,298.50	114,091,722.01	65,455,461.33		367,363,481.84
Gain 5. changes from value fair in	22,331,893.23	24,405,843.08	9,858,575.79		56,596,312.10
Impairment 6. assets on losses	(14,412,159.44)	21,567,802.50	(73,535,479.66)		(66,379,836.60)
profit Total 7. (loss total (	598,789,713.17	411,949,532.53	359,045,200.99	(47,036,133.66)	1,322,748,313.03
Income 8. expenses tax	42,041,043.57	(5,394,304.31)	16,972,201.69		53,618,940.95
Net 9. (loss net (profit
including( minority (interests	556,748,669.60	417,343,836.84	342,072,999.30	(47,036,133.66)	1,269,129,372.08
assets Total 10.	10,024,044,060.50	7,872,553,097.96	4,453,651,074.56 )	10,385,538,942.44 (	11,964,709,290.58
11. liabilities Total	6,459,760,244.08	6,114,821,210.11	3,118,068,803.20	) 6,911,278,689.38 (	8,781,371,568.01
Additions 12. other to current-non other assets term-long than
equity investments	555,647,102.81	107,704,846.59	38,230,532.47		701,582,481.87

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued(information Segment 49.

(continued (liabilities and assets and loss or profit Segmental) 1(

table above from Continued

			segment-Inter
Refrigerators	conditioners-Air	Others	elimination	Total
8,461,166,469.00	6,665,134,751.43	2,227,475,462.28		17,353,776,682.71
		676,793,128.22	(676,793,128.22)
10,065,089.89	180,174,917.89	(143,000.95)		190,097,006.83
157,257,659.98	123,199,415.13	97,296,471.46		377,753,546.57
(18,877,582.57)	(10,481,249.64)	12,721,319.99		(16,637,512.22)
12,541,870.92	18,180,374.60	10,174,429.31		40,896,674.83
383,535,395.57	211,840,410.68	180,114,227.65	(32,636,025.83)	742,854,008.07
815,401.83	1,333,698.10	8,399,334.79		10,548,434.72
382,719,993.75	210,506,712.58	171,714,892.85	(32,636,025.83)	732,305,573.35
7,811,010,733.14	5,171,832,963.97	3,474,332,492.51	7,256,841,548.89 (	9,200,334,640.73
5,040,013,259.72	4,029,079,030.52	2,440,086,482.12	4,182,052,143.59 (	7,327,126,628.77
3,719,865.79	(52,778,720.84)	(22,180,836.57)		(71,239,691.62)
				) )

Information Geographic) 2(

Item	2013	2012
Revenue from domestic transactions	15,623,701,445.80	11,534,718,459.71
Revenues from overseas transactions	6,563,224,047.18	5,819,058,223.00
Total	22,186,925,492.98	17,353,776,682.71
Non current- — assets Domestic	3,812,999,561.22	2,853,489,324.27
Non current- — assets Overseas	404,326,405.11	416,679,215.32
Total	4,217,325,966.33	3,270,168,539.59

are assets current-non of majority the where ,China Mainland in operates mainly Company The .information regional the of details further present to necessary not is it Therefore .located

(RMB in denominated are amounts ,stated expressly otherwise Unless(

transactions pARTY related and parties Related 8.

parent the of Particulars 1.

Name the of parent	Relationship	of Category enterprise	Registration address	Legal representative	:Unit 0000'RMB Business nature
Qingdao Hisense Air conditioning-	Controlling shareholder	Foreign joint sino- venture	Qingdao	Tang Guo Ye	Manufacture air of ,conditioners and moulds provision sale-after of services
Hisense Group	Ultimate holding shareholder	wholly State owned	Qingdao	Zhou Jian Hou	Entrusted of operation owned-state ;assets manufacture sales and household of ,appliances communication products services and

table above from Continued

Name the of parent	Registered capital	Shareholding of parent the (%)	Voting rights of parent the (%)	Ultimate holding company	Organization code
Qingdao Hisense Air conditioning-	67,479	45.22%	45.22%	owned-State Assets Supervision and Administration Commission Qingdao of Municipal	61430651-4
Hisense Group	80,617			owned-State Assets Supervision and Administration Commission Qingdao of Municipal	16357877-1

note see please ,Company the of ventures joint and associates ,subsidiaries the on information For 2. .(10)7 note and) 9(7 note 6,

Companies Greencool 3.

Name related of parties of Greencool Companies	Relationship the with Company
Guangdong Greencool	Former controlling shareholder of
	the Company
Shenzhen Greencool Environmental	Related of party Guangdong Greencool
Shenzhen Greencool Technology	Related of party Guangdong Greencool
Greencool Procurement ( Shenzhen .Ltd .,Co)	Related of party Guangdong Greencool
(" Greencool Procurement ("
Hainan Greencool	Related of party Guangdong Greencool
Jiangxi Greencool Electrical Appliance .Ltd .,Co	Related of party Guangdong Greencool
Jiangxi(" Greencool ("

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions pARTY related and parties Related 8.

Company the of parties related Other 4.

Name other of related parties	Other related parties Relationship with the Company	Institution code
Hisense Finance .Ltd .,Co Hisense (" ") Finance	Subsidiary of ultimate holding company	71788291 x
Qingdao Hisense Electric .Ltd .,Co Hisense(" Electrical Appliances ("	Subsidiary of ultimate holding company	26462882- x
Shunde Yunlong Consultancy Service Limited Shunde(" Yunlong Consultancy ("	Minority shareholder of Huaao Electronics
Beijing Xuehua Group Company Limited Xuehua(" ("Group	Minority shareholder of Beijing Refrigerator
Beijing Embraco Snowflake compressor .Ltd .,Co (" Embraco ("	Associate of Xuehua Group
Hisense International HK ( .Ltd .,Co)	Subsidiary of ultimate
Hisense(" Hong ("Kong	holding company

the through flows cash unusual or transactions of series a had Companies Greencool The 5. "Companies Party Third Specific "following

Jiangxi Kesheng	Specific Third Party Company
Jinan Fu Ai San	Specific Third Party Company
Tianjin Xiangrun	Specific Third Party Company
Tianjin Lixin	Specific Third Party Company
Jiangxi Keda	Specific Third Party Company
Hefei Weixi	Specific Third Party Company
Zhuhai Longjia	Specific Third Party Company
Zhuhai Defa	Specific Third Party Company
Wuhan Changrong	Specific Third Party Company
Tianjin Taijin	Specific Third Party Company
Deheng Solicitors	Specific Third Party Company
Shangqiu Bingxiong	Specific Third Party Company
Finance of Bureau Yangzhou Economic Development Zone	Specific Third Party Company

Company the with Relationship party related of Name

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions pARTY related and parties Related 8.

transactions party Related) 6(

services of receipt/goods of Purchase) 1(

			for Amount	period current	for Amount	period previous
party Related	of Particulars parties related transactions	and Pricing decision making procedures related of parties transactions	Amount	Percentage similar to transaction ) %(	Amount	Percentage similar to transaction (%)
Hisense Whirlpool	goods Finished	price Agreed	654,769,720.19	3.44	349,849,515.68	2.33
Hisense Electrical and Appliances subsidiaries its	goods Finished	price Agreed	409,060.87		116,566.71
Hisense and Group subsidiaries its	goods Finished	price Agreed	167,413.33
Subtotal purchase of finished of goods			655,346,194.39	3.44	349,966,082.39	2.33
Huayi and Compressor subsidiaries its	materials Raw	price Agreed	792,876,108.54	4.16	738,685,597.41	4.91
Embraco	materials Raw	price Agreed	55,408,634.21	0.29	41,833,871.81	0.28
Hisense Whirlpool	materials Raw	price Agreed	6,414,982.38	0.03	5,127,848.50	0.03
Hitachi Hisense	materials Raw	price Agreed	7,658,894.53	0.04	6,504,984.81	0.04
Hisense and Group subsidiaries its	materials Raw	price Agreed	12,297,129.49	0.06	5,982,255.07	0.04
Hisense Electrical and Appliances subsidiaries its	materials Raw	price Agreed	21,045,309.18	0.11	12,199,141.46	0.08
of Subtotal raw of purchase materials			895,701,058.33	4.69	810,333,699.06	5.38
Hisense and Group subsidiaries its	and Mould equipment	price Agreed	44,097.00		687,840.40
Hisense Electrical and Appliances subsidiaries its	and Mould equipment	price Agreed			28,119.76
Subtotal purchase of and moulds of equipment			44,097.00		715,960.16
Hisense and Group subsidiaries its	of Receipt services	price Agreed	314,008,392.57	1.65	221,143,204.53	1.47
Group Xuehua	of Receipt services	price Agreed	18,464,451.09	0.10	22,460,245.50	0.15
Hisense Electrical and Appliances subsidiaries its	of Receipt services	price Agreed	9,037,818.74	0.05	9,381,775.43	0.06
Subtotal receipt of services of			341,510,662.40	1.80	252,985,225.46	1.68
Hisense Kong Hong	Financing purchase		145,231,385.68	0.76	85,141,686.04	0.57
Subtotal financing of purchase			145,231,385.68	0.76	85,141,686.04	0.57

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions party related and parties Related 8.

(continued(transactions party Related) 6(

(continued (services of receipt/goods of Purchase) 1(

• Business a into entered Group Hisense of subsidiaries related the and Company The) 1( effective the During 2012. December 6 on Agreement Framework Cooperation and purchaser the being Company the with transaction the ,agreement the of period of) tax added-value of exclusive (cap aggregate an to subject was services of recipient 189,320,000.RMB
• a (.Ltd .,Co Holdings Marketing International Hisense Qingdao and Company The) 2( Framework Goods White for Agency Export an into entered) Group Hisense of subsidiary the ,agreement the of period effective the During 2012. December 6 on Agreement aggregate an to subject was services of recipient the being Company the with transaction 280,000,000.RMB of) tax added-value of exclusive (limit
• (II (Agreement Framework Business a into entered Whirlpool Hisense and Company The) 3( with transaction the ,agreement the of period effective the During 2012. December 6 on aggregate an to subject was services of recipient and purchaser the being Company the 868,560,000.RMB of) tax added-value of exclusive (cap
• Supply and Purchase Compressors a into entered Compressor Huayi and Company The) 4( the of period effective the During 2012. December 6 on Agreement Framework an to subject was purchaser the being Company the with transaction the ,agreement 1,180,000,000.RMB of) tax added-value of exclusive (cap aggregate
• on) I (Agreement Framework Business a into entered Hitachi Hisense and Company The) 5( the with transaction the ,agreement the of period effective the During 2012. December 6 added-value of exclusive (cap aggregate an to subject was purchaser the being Company 7,690,000.RMB of) tax
• Agreement Framework Purchase Compressors a into entered Embraco and Company The) 6( with transaction the ,agreement the of period effective the During 2012. December 6 on 106,840,000.RMB of) tax addedvalue of exclusive (cap aggregate an to subject was purchaser the being Company the
• Framework Service Property a into entered Group Xuehua Beijing and Company The) 7( the ,agreement the of period effective the During 2012. December 6 on Agreement services property provide to Group Xuehua engaged Company the which in transaction 32,000,000.RMB of cap aggregate an to subject was
• Framework Purchase Factoring a into entered Kong Hong Hisense and Company The) 8( the ,agreement the of period effective the During 2012. December 6 on Agreement factoring perform to Kong Hong Hisense engaged Kelon Hisense which in transaction 36,000,000.USD of cap aggregate an to subject was agent its as purchase

the of meeting interim sixth the at approved and considered were agreements above The and 2012 December 6 on convened 2012 in directors of board the of session eighth s'Company .respectively 2013 January 25 on convened 2013 in meeting general extraordinary first the

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions party related and parties Related 8.

(continued(transactions party Related) 6(

service of rendering/goods of Sale) 2(

			Amount	year the for		for Amount year previous
Name party related of	of Particulars parties related transactions	Pricing and policies procedures decision for making	Amount	Percentage similar to ) % (transactions	Amount	Percentage similar to transactions (%)
Hisense Electrical and Appliances subsidiaries its	goods Finished	price Agreed	102,569.92		104,787.60
Hisense Whirlpool	goods Finished	price Agreed	146,318.87
Hitachi Hisense	goods Finished	price Agreed	70,899,684.46	0.29	46,352,001.50	0.24
Hisense and Group subsidiaries its	goods Finished	price Market	2,630,872,809.89	10.80	2,321,308,431.16	12.24
of Subtotal of amount sales finished product			2,702,021,383.14	11.09	2,367,765,220.26	12.48
Hisense Whirlpool	materials Raw	price Agreed	21,528,464.60	0.09	22,135,363.33	0.12
Hisense and Group subsidiaries its	materials Raw	price Agreed	8,650,148.96	0.04	36,718,517.66	0.19
Hitachi Hisense	materials Raw	price Agreed	1,390,888.76	0.01	62,606.54
Hisense Electrical and Appliances subsidiaries its	materials Raw	price Agreed	4,175,791.11	0.02	12,926.82
of Subtotal of amount sales materials raw			35,745,293.43	0.16	58,929,414.35	0.31
Hisense and Group subsidiaries its	and Mould equipment	price Market	182,374,253.98	0.75	162,765,821.13	0.86
Hitachi Hisense	Mould	price Market	118,803.43		213,675.21
Hisense Whirlpool	and Mould	price Market	7,139,646.13	0.03	1,722,638.38	0.01
	equipment
Hisense Electrical and Appliances subsidiaries its	Mould	price Market	72,330,708.33	0.30	56,199,720.78	0.30
Subtotal amount sales of moulds of			261,963,411.87	1.08	220,901,855.50	1.17
Attend Hisense Electrical and Appliances		price Agreed price Agreed			3,000.00 308,000.00
subsidiaries its
Hisense Whirlpool Hisense and Group subsidiaries its		price Agreed price Agreed	2,710,938.24 2,455,623.42	0.01 0.01	739,797.81 2,462,818.40	0.01
Subtotal rendering of services of			5,166,561.66	0.02	3,513,616.21	0.01

• Business a into entered Group Hisense of subsidiaries related and Company The) 1( of period effective the During 2012. December 6 on Agreement Framework Cooperation provider service and supplier the being Company the with transaction the ,agreement the 3,289,320,000.RMB of) tax added-value of exclusive (cap aggregate an to subject was
• (II (Agreement Framework Business a into entered Whirlpool Hisense and Company The) 2( with transaction the ,agreement the of period effective the During 2012. December 6 on cap aggregate an to subject was provider service and supplier the being Company the 39,390,000.RMB of) tax added-value of exclusive(
• (I (Agreement Framework Business a into entered Hitachi Hisense and Company The) 3( with transaction the ,agreement the of period effective the During 2012. December 6 on cap aggregate an to subject was provider service and supplier the being Company the 118,600,000.RMB of) tax added-value of exclusive(

the of meeting interim sixth the at approved and considered were agreements above The and 2012 December 6 on convened 2012 in directors of board the of session eighth s'Company .respectively 2013 January 25 on convened 2013 in meeting general extraordinary first the

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions party related and parties Related 8.

(continued(transactions party Related) 6(

guarantees party related of Particulars) 3(

Guarantor	Guaranteed party	Amount (0000'RMB(	date Effective guarantee of	date Expiry guarantee of	of Nature guarantee	Guarantee completed
Group Hisense	Ronshen Plastic	476.65	2013.10.23	2014.03.10	Import of letter credit	No
Group Hisense	Shandong Refrigerator	963.60	2013.04.25	2014.06.30	Import of letter credit	No
Group Hisense	Shandong Refrigerator	621.94	2013.04.25	2014.06.30	Domestic of letter credit	No
Subtotal of letter of credit		2,062.19 —		—

:guarantee party related of Particulars

• Communications of Bank of branch Foshan the and Group Hisense 2012, January In) 1( .No Zi E Fei Bao Zui Yin Jiao Fo (Contract Guarantee Maximum a into entered for securities guarantee provide would Group Hisense which to pursuant ,)2012106014 Foshan the by granted 165,000,000RMB of limit credit maximum the under liabilities the the during Plastic Ronshen and Company the to Communications of Bank of branch 2013. December 27 to 2011 December 27 from period
• branch Qingdao of department business the and Group Hisense 2013, April In) 2( .No (Contract Guarantee Maximum a into entered Bank Agricultural of guarantee provide would Group Hisense which to pursuant ,)84100520130002413 arising 100,000,000RMB of limit credit maximum the under liabilities the for securities of department business the by Refrigerator Shandong with businesses various from April 23 to 2013 April 25 from period the during Bank Agricultural of branch Qingdao 2014.
• of deposit of balances had subsidiaries its and Company the 2013, December 31 at As) 3( Hisense with 1,093,009,200RMB of payable notes and 0,RMB of loans 318,093,800,RMB 0,RMB to amounted Finance Hisense to paid interests loan ,year the For .Finance handling and 225,500,RMB to amounted notes discounted to relation in paid interests Finance Hisense from received income Interest 1,454,800.RMB to amounted paid fees by services exchange foreign of Provision 2,087,900.RMB to amounted deposits the for .year the for 166,579,200RMB to amounted Finance Hisense

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions party related and parties Related 8.

parties related to payables and from Receivables) 7(

parties related from Receivables) 1(

		Closing	balance	Opening balance
Item	Related party	Carrying amount	Provision for debts bad	Carrying amount	Provision for debts bad
Accounts receivable	Hisense Electrical Appliances its and subsidiaries	8,310,815.47		4,111,613.09
Accounts receivable	Hisense Group its and subsidiaries	261,146,292.16	830.04	341,067,486.70	863,752.76
Accounts receivable	Hisense Whirlpool	6,612,890.57		11,685,289.52
Accounts receivable	Hisense Hitachi	12,091,751.26		100,000.00
	Subtotal	288,161,749.46	830.04	356,964,389.31	863,752.76
Notes receivable	Hisense Group its and subsidiaries	11,349,514.97		28,452,507.01
	Subtotal	11,349,514.97		28,452,507.01
Other receivables	Shunde Yunlong Consultancy	4,455,375.57	4,455,375.57	4,455,375.57	4,455,375.57
Other receivables	Hisense Electrical Appliances its and subsidiaries	33,670.00
Other receivables	Hisense Group its and subsidiaries	446,694.81		22,760.00
Other receivables	Hisense Whirlpool	11,122,562.09
	Subtotal	16,058,302.47	4,455,375.57	4,478,135.57	4,455,375.57
Prepayments	Hisense Group its and subsidiaries	448,053.16
Prepayments	Huayi Compressor its and subsidiaries			5,852,060.18
	Subtotal	448,053.16		5,852,060.18

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions party related and parties Related 8.

(continued(parties related to payables and from Receivables) 7(

parties related to Payables) 2(

Item	Related party	Closing balance	Opening balance
Notes payable	Huayi Compressor its and subsidiaries		15,000,000.00
Subtotal			15,000,000.00
Accounts payable	Huayi Compressor its and subsidiaries	174,056,225.97	176,551,619.44
Accounts payable	Embraco	18,578,321.11	14,975,319.81
Accounts payable	Hisense Group its and subsidiaries	34,213,685.77	12,404,602.33
Accounts payable	Hisense Whirlpool	235,546,646.15	55,750,858.43
Accounts payable	Hisense Hitachi	1,323.34	292,761.19
Accounts payable	Hisense Electrical Appliances its and subsidiaries	38,336.76
Subtotal		462,434,539.10	259,975,161.20
Other payables	Hisense Group its and subsidiaries	390,870.01	368,738.49
Other payables	Huayi Compressor its and subsidiaries	600,000.00	300,000.00
Other payables	Embraco	100,000.00	100,000.00
Other payables	Combine	5,099,880.00	5,099,880.00
Other payables	Hisense Whirlpool		13,452.61
Other payables	Xuehua Group	629,794.63
Subtotal		6,820,544.64	5,882,071.10
Advances from customers	Hisense Hitachi	8,589,916.67	1,551,940.98
Advances from	Hisense Group its and	491,778.44	6,006,903.93
customers	subsidiaries
Subtotal		9,081,695.11	7,558,844.91

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions party related and parties Related 8.

"companies party third specific "with Transactions) 8(

Item	Related parties	Closing carrying balance	Opening carrying balance
Accounts receivable	Hefei Weixi	18,229,589.24	18,229,589.24
	Wuhan Changrong	20,460,394.04	20,460,394.04
Subtotal of accounts receivable		38,689,983.28	38,689,983.28
Prepayments	Hefei Weixi	465,213.00	465,213.00
Subtotal of prepayments		465,213.00	465,213.00
Other receivables	Jiangxi Kesheng	27,462,676.72	27,462,676.72
	Jinan Fu Ai San	121,496,535.45	121,496,535.45
	Tianjin Xiangrun		96,905,328.00
	Tianjin Lixin		89,600,300.00
	Jiangxi Keda	13,000,200.00	13,000,200.00
	Zhuhai Longjia	28,600,000.00	28,600,000.00
	Zhuhai Defa	21,400,000.00	21,400,000.00
	Wuhan Changrong	20,000,000.00	20,000,000.00
	Deheng Solicitors	4,000,000.00	4,000,000.00
	Finance of Bureau Yangzhou Economic Development Zone		40,000,000.00
	Shangqiu Bingxiong	58,030,000.00	58,030,000.00
Subtotal other of receivables		293,989,412.17	520,495,040.17
Other payables	Zhuhai Longjia	28,316,425.03	28,316,425.03
	Zhuhai Defa	7,362,170.00	21,400,000.00
	Tianjin Taijin	65,000,000.00	65,000,000.00
Subtotal other of payables		100,678,595.03	114,716,425.03

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(transactions party related and parties Related 8.

Companies Greencool with Transactions) 9(

Item	Related parties	Closing balance	Opening balance
Other receivables	Guangdong Greencool	13,754,600.00	13,754,600.00
	Shenzhen Greencool Environmental	33,000,000.00	33,000,000.00
	Shenzhen Greencool Technology	32,000,000.00	32,000,000.00
	Hainan Greencool	12,289,357.71	12,289,357.71
Subtotal other of receivables		91,043,957.71	91,043,957.71
Other payables	Jiangxi Greencool	13,000,000.00	13,000,000.00
Subtotal other of payables		13,000,000.00	13,000,000.00

payment based-Share 9.

payments based-share about information General 1.

Item	Amount for year the
Total equity instruments granted during period the Total equity instruments exercised during period the Total equity instruments expired during period the	1,501,548.00
of Range exercise price share of option outstanding and remaining of term contract the as of end period the	Exercise price share of option was 7.65,RMB a with remaining of term contract of term days 973
of Range exercise price other of equity instruments and remaining of term contract the at as of end period the

payments based-share settled Equity 2.

Item	Amount for year the
Determination on value fair equity of instruments as date the grant of	value Fair share of options under the Scheme calculated using by Black the Scholes- option
Determination on best the estimate of quantity of exercisable equity instruments	pricing model Determined the by number of incentive objects expected , gain share of option and performance assessment of incentive objects etc ,
Reasons for significant discrepancies between estimate current of and previous period	Nil
Accumulated amount equity of settled share based- payments in capital reserve	7,710,000.00
Total expense recognized equity for settled share based- payments	7,710,000.00

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(payment based-Share 9.

services based-Share 3.

Item	Amount for current period Amount for previous period
Total of amount employee services as of result a share the based- payments	7,710,000.00
Total amount other of services as of result a share the based- payments

granted Shares 4.

Category	Exercise price	Outstanding at as January 1 2013	Transferred other from categories during year the	Lapsed during year the	Exercised during year the	Expired during year the	Outstanding at as 31 December 2013
Directors	7.65RMB	2,808,000	181,000				2,989,000
Senior management	7.65RMB	2,484,000					2,484,000
Other management	7.65RMB	14,218,000	(181,000)	4,668,000			9,369,000
Total		19,510,000		4,668,000			14,842,000

Option Share First the under options share of grant the for registration the completed has Board The authorization the under Limited Company Holdings Electrical Kelon Hisense of Scheme Incentive as information basic the 2011, September 28 on Company the of meeting general the at granted :follows

• 2011 August 31 :grant of Date) 1(
• .share per 7.65RMB :price Exercise) 2(
• 1JLC Hisense :abbreviation Option) 3(
• 037018 :code Option) 4(
• 2 of period restriction a to subject ,grant of date the from years five for valid options share The) 5( years 3 within installments equal in options their exercise may participants incentive The .years granted options total the of 34% and 33% 33%, with ,grant of date the of year third the from .year each exercisable being
• the of excluding Company the of directors the :include may participants incentive The) 6( and Group Hisense the of officers not are who directors external and directors independent including (management senior ,)subsidiaries its and Company the than other (subsidiaries its other and secretary company ,secretary Board ,controller financial ,president vice ,president the of) Association of Articles the under management senior as regarded are which officers technical and ,subsidiaries its and Company the of staff management level-mid ,Company .Board the by determined backbone
• by raised be shall participants the by options share of exercise for used be to fund The) 7( financial of kind other any or borrowings provide not does Company the and themselves .(borrowings their for guarantee including (Scheme the under participants the to assistance
• with filed ,Qingdao of SASAC the by approved and examined been has scheme option share The) 8( .objections no with CSRC the with filed and Council State the of SASAC the

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(payment based-Share 9.

(continued (granted Shares 4.

granted be to shares of number and participants the of adjustment the on resolution the 2013, October 18 On of meeting interim fourth the at passed was Company the of scheme incentive option share first the under cancelled were options share 4,668,000 and 2013 in directors of board the of session eighth s'Company the .scheme the under granted be can options share 14,842,000 ,adjustment the Upon .result a as

the of scheme incentive option share first the of period exercise first the for conditions the 2013, In session eighth s'Company the of meeting interim fourth the at approval Upon .fulfilled were Company their exercise to rights the with participants 163 of options share the 2013, in directors of board the of options share 4,897,860 of total A .exercisable became period exercise first the during options share the of participants 163 2014, March 27 at As 7.65.RMB of price exercise the at exercised be could .rights their exercised not have options share their exercise to rights the with Company

CONTINGENCIES 10.

impact financial their and litigations pending from arising liabilities Contingent 1.

:follows as summarized are Company the involving litigations pending the 2013, December 31 at As

plaintiff the as Company the with Cases) 1(

Plaintiff	Defendant	Causes	Total amount involved
The Company	Beijing Diamond Advertising .Ltd .,Co	Dispute over advertising contract	5,000,000.00
Kelon Jiake	Shunde Yunlong Consultancy	Dispute over debts	4,455,375.57
The Company and its subsidiaries	Others		6,046,160.00

15,501,535.57 Total

defendant the as Company the with Cases) 2(

Plaintiff	Defendant	Cause	Total amount involved
Supplier raw of materials	The Company	Dispute over and sale purchase contract and processing contract	8,289,813.51
Other	The Company	Labor dispute others and	3,807,813.64
Total			12,097,627.15

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (CONTINGENCIES 10.

• (continued (impact financial their and litigations pending from arising liabilities Contingent 1.
• not was but effective become and Company the of favor in was judgment the which for Cases) 3( executed yet

Plaintiff	Defendant	Cause	Total amount involved
The Company	Shangqiu Kelon	Purchase amount outstanding	25,660,900.00
Total			25,660,900.00

of amount purchase the repay to defendants the to Company the of request the represented It .effect in now is judgment civil The .fees litigation the all and interests related ,goods

EVENTS SIGNIFICANT OTHER 11.

value fair at measured liabilities and Assets 1.

Item	Opening balance	Amount of financial assets	Gain (loss(/ from change in value fair	Impairment provision for the period	Closing balance
Financial assets
Derivative financial assets	10,678,293.47	67,115,019.35	56,436,725.88		67,115,019.35
Subtotal of financial assets	10,678,293.47	67,115,019.35	56,436,725.88		67,115,019.35
Derivative financial liabilities	) 164,231.22 (	(4,645.00)	159,586.22		(4,645.00)
Subtotal of financial liabilities	) 164,231.22 (	(4,645.00)	159,586.22		(4,645.00)

policies and objectives management risk Financial 2.

financial derivative ,hand on and bank at cash :include instruments financial major s'Company The ,payable accounts ,payable notes ,receivables other ,receivable accounts ,receivable notes ,instruments relevant the in disclosed were instruments financial the of Details .borrowings bank ,payables other .notes

rate interest ,risk liquidity ,risk credit :include instruments financial above the with associated Risks .risk currency foreign and risk

risk Credit) 1(

of failure the from arising losses financial on Company the to exposed risk the is risk Credit from mainly arises It .obligations contract fulfill to counterparties instrument financial or clients .derivative financial and receivables other and trade ,balances bank the

banks state large major several in balances bank its of all substantially maintains Company The that opinion the of is Board the ,banks those on country the of support strong In .PRC the in .assets such with associated losses to exposed risk credit significant no is there

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued (policies and objectives management risk Financial 2.

(continued (risk Credit) 1(

dealing by receivables other and trade to relating risk to exposure its mitigates Company The required are customers new Certain .foundation financial solid with customers diversified with The .risk credit to exposure maximum the reduce to Group the with deposits cash place to control credit a has and receivables outstanding its over control strict maintain to seeks Group ongoing an on monitored are balances receivable all ,addition In .risk credit minimize to policy .management senior by up followed are balances overdue and basis

high are counterparties the as significant not is instruments derivative on risk credit The .agencies rating-credit international by rated banks creditworthy

of class each of amount carrying the is date reporting at risk credit to exposure maximum The .statements financial consolidated the on shown assets financial

risk Liquidity) 2(

cash and cash maintains and monitors Company the ,risk liquidity of management the In the finance to ,views of point s'management the in ,adequate is which level a at equivalents The .flows cash in fluctuations term-short of effects the mitigate and operations s'Company of continuity between balance a maintaining for responsible is department treasury s'Company s'Company the meet to order in loan and credit bank of use the through flexibility and funding .requirements liquidity

the of review detailed a out carried have directors the ,risk liquidity the mitigate to order In borrowings ,payables other and trade its of profile maturity including ,Company the of liquidity bank of renewal future and Finance Hisense by provided financing loan of availability and term-short s'Group the fulfill to available is funding adequate that concluded is it ,borrowings .requirements expenditure capital and obligations

risk rate Interest) 3(

with deposits mainly are assets financial bearing-Interest .liabilities and assets financial bearinginterest of rates interest in changes to due risk rate interest to exposed is Company The are liabilities financial bearing-interest whereas nature in term-short mostly are which ,banks bank term-short s'Company the 2013, December 31 at As .borrowings bank term-short primarily any ,loans term short were borrowings s'Company the all As .rate fixed at were borrowings the on impact significant have to considered not is time to time from rate interest the in change .performance s'Company

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued (policies and objectives management risk Financial 2.

risk currency Foreign) 4(

to relating rates exchange in change adverse to due loss of risk the is risk currency Foreign assets monetary s'Group The .currencies foreign in denominated transactions and investments exchange The .EUR and JPY ,USD ,HKD ,RMB in denominated mainly are transactions and of fluctuation is there and ,pegged not are EUR and JPY ,USD ,HKD ,RMB between rates .EUR and JPY ,USD ,RMB between rates exchange

denominated liabilities monetary and assets monetary s'Company the of amounts carrying The :follows as are period reporting of end the at currencies foreign in

Currency	Closing balance		Opening	balance
	Assets	Liabilities	Assets	Liabilities
USD	1,021,163,328.28	59,472,179.79	583,485,858.40	32,183,140.67
EUR	382,080,146.63	3,624,342.09	84,088,791.97	4,434,575.43

exchange foreign possible reasonably of effect approximate the indicates table following The of end the at exposure significant has Group the which to ,profit net the on changes rate :period reporting

:rate exchange in change of analysis Sensitivity

	2013	2012
Item	Increase Decrease/ profit in tax after	Increase Decrease/ profit in tax after
USD RMB to
Appreciates 5% by	36,063,418.07	20,673,851.91
Depreciates 5% by	) 36,063,418.07	) ( 20,673,851.91 (
EUR RMB to
Appreciates 5% by	14,192,092.67	2,987,033.12
Depreciates 5% by	) 14,192,092.67	) ( 2,987,033.12 (

:rate forward in change of analysis Sensitivity

Item	2013 Increase Decrease/ profit in tax after	2012 Increase Decrease/ profit in tax after
USD RMB to
Appreciates 5% by	) 15,187,500.00	) ( 9,993,375.00 (
Depreciates 5% by	15,187,500.00	9,993,375.00
EUR RMB to
Appreciates 5% by	) 1,408,387.50	) ( 1,172,925.00 (
Depreciates 5% by	1,408,387.50	1,172,925.00

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

management Capital 3.

ability s'Company the safeguard to are management capital s'Company the of objectives primary The business its support to order in ratios capital healthy maintain to and concern going a as continue to .value' shareholders maximise and

economic in changes of light in it to adjustments makes and structure capital its manages Group The capital the adjust or maintain To .assets underlying the of characteristics risk the and conditions or shareholders to capital return ,shareholders to payment dividend the adjust may Group the ,structure capital managing for processes or policies ,objectives the in made were changes No .shares new issue 2012. December 31 and 2013 December 31 ended years the during

capital adjusted the by divided debt net is which ,ratio gearing a using capital monitors Group The other ,payable notes ,payable accounts ,borrowings other and bank includes debt Net .debt net plus of end the at as ratios gearing The .equivalents cash and cash less ,payables debentures and payables :follows as were periods reporting the

Item	2013	2012
Total debt	8,781,371,568.01	7,327,126,628.77
Including Short : term- borrowings	191,681,513.02	30,309,453.94
Accounts payable	3,480,510,368.16	2,335,425,936.47
Notes payable	1,391,098,638.68	1,432,852,210.08
Other payables	1,731,259,054.40	1,581,294,492.81
Less Cash : cash and equivalents	472,987,177.54	513,661,376.53
debt Net	8,308,384,390.47	6,813,465,252.24
Equity attributable to shareholders the of parent	2,748,731,080.83	1,512,042,166.49
Capital and debt net	11,057,115,471.30	8,325,507,418.73
Gearing ratio	75.14%	81.84%

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

emoluments' supervisors and Directors 4.

:follows as are Company the of supervisors and directors the to payable or paid emoluments The

2013 December 31 at As) 1(

0000'RMB :Unit

		Emoluments of		Pension
Name	Position	independent director	Salaries and allowances	scheme contributions	Total
Executive director
Tang Guo Ye	Chairman		97.64	2.28	99.92
Yu Min Shu	Director
Lan Lin	Director
Xiao Lin Jian	Director
Ren Li Ren	Director and President		86.46	2.13	88.59
Gan He Yong	Director and Vice president-		137.94	1.75	139.69
Independent non executive director
Xu Yi Xiang	Independent non executive- director	9.00			9.00
Wang Guo Ai	Independent non executive- director	9.00			9.00
Wang Yu Xin	Independent non executive- director	24.00			24.00
Supervisor
Liu Shun Zhen	Chairman of Supervisory Committee
Zhang Jun Jian	Employee representative supervisor		33.77		33.77
Gao Ling Yu	Supervisor
Guo Cun Qing	Former supervisor
Liu Yan Jiang	Former supervisor
Total		42.00	355.81	6.16	403.97

:Particulars

• an as directors the to Company the by paid were emoluments no ,year the During) 1( None .office of loss for compensation as or Group the joining upon or join to inducement during emoluments any waive to agreed or waived has Company the of directors the of .year the
• appointed was Ling Yu Gao .Ms; 2014 January 10 on appointed was Shun Zhen Liu .Mr) 2( Yan Jiang Liu .Ms; 2014 January 10 on resigned Cun Qing Guo .Mr; 2014 January 10 on 2014. January 10 on resigned

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued (emoluments' supervisors and Directors 4.

2012 December 31 at As) 1(

0000'RMB :Unit Position Name Emoluments of independent director and Salaries allowances Pension scheme Total contributions director Executive 99.92 1.52 98.40 Chairman Guo Ye Tang Director Min Shu Yu Director Lan Lin Director Lin Jian Xiao and Director Ren Li Ren President 80.08 1.89 78.18 and Director He Yong Gan president-Vice 98.60 1.52 97.08 director executivenon Independent Independent Yi Xiang Xu executive-non director 4.50 4.50 Independent Guo Ai Wang executive-non director 9.00 9.00 Independent Yu Xin Wang executive-non director 24.00 24.00 independent Former Ping Sheng Zhang executive-non director 4.50 4.50 Supervisor Supervisor Cun Qing Guo Supervisor Yan Jiang Liu Employee Jun Jian Zhang representative supervisor 29.84 0.08 29.76 supervisor Former Xiang Zhong Gao 24.10 24.10 supervisor Former Cheng Zhan Liu 374.54 5.01 327.53 42.00 Total

:Particulars

• an as directors the to Company the by paid were emoluments no ,year the During) 3( None .office of loss for compensation as or Group the joining upon or join to inducement during emoluments any waive to agreed or waived has Company the of directors the of .year the
• appointed was Yi Xiang Xu .Mr; 2012 January 16 on appointed was He Yong Gan .Mr) 4( Jian Zhang .Mr; 2012 August 15 on appointed was Yan Jiang Liu .Ms; 2012 June 26 on ;2012 June 26 on resigned Ping Sheng Zhang .Mr; 2012 June 26 on appointed was Jun on resigned Cheng Zhan Liu .Mr and; 2012 June 26 on resigned Xiang Zhong Gao .Mr 2012. June 26

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued (emoluments' supervisors and Directors 4.

individuals paid highest Five) 2(

.directors were Company the of individuals paid highest five the of) three 2012: (two 2013, In are) two 2012: (individuals three other the of respect in emoluments the of aggregate The under and 1,000,000RMB above two was 2013 for emoluments of range the (follows as below was 2012 for emoluments of range the and 1,000,000,RMB below one and 1,500,000RMB :(1,000,000RMB

Total	959.04	719.81
Retirement benefit scheme costs	27.34	20.23
Salaries other and term-short employee benefits	931.70	699.58
Item	2013	2012
	:Unit 0000'RMB

scheme benefit Retirement 6.

by administered is which ,scheme pension contribution defined a to mainly contributes Company The to According .subsidiaries and Company the of employees of respect in ,government provincial the of percentages several at calculated ,amount an pay shall subsidiaries and Company the ,scheme such .fund retirement a to ,employees the of wages and salaries total the

2012:) 289,864,200RMB of approximately loss or profit the to charged costs total The rates at subsidiaries and Company the by scheme the to contributions represents) 208,643,600RMB .scheme the in specified

Leases 7.

:follows as are Company the of assets leased of categories Different) 1(

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued (Lease 7.

lease operating under lessor as Company The) 2(

.terms different for tenants of number a to leased also are properties investment s'Company The .(7,860,000RMB 2012: (8,750,000RMB to amounted 2013 for income rental The

reporting of end the at leases operating cancellable-non under receivables rent minimum The :follows are is period

		:Unit 0000'RMB
Item year one year one within but years five	Amount for year the	Amount for previous year
Within	570.31	669.63
Over	291.44	473.69
Total	861.75	1,143.32

lease operating under lessee as Company The) 3(

under machinery and plant and buildings and land leasehold certain leases Company The the for payments lease operating The .years five to one from terms lease with leases operating :follows as was 2013 December 31 ended year

	:Unit 0000'RMB
Operating lease payments	Amount for year the	Amount for previous year
Leasehold and land buildings	1,904.78	1,318.27
and Plant machinery	564.13	756.31
Total	2,468.91	2,074.58

end the at leases operating cancellable-non under payments lease minimum future total The) 4( :follows as are due falling period reporting of

		:Unit 0000'RMB
Item	Amount for year the	Amount for previous year
Within year one	889.83	804.25
Over year one within but years five	1,027.48	992.75
Total	1,917.31	1,797.00

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued (EVENTS SIGNIFICANT OTHER 11.

commitment Capital 8.

Item	Closing balance	:Unit 0000'RMB Opening balance
Commitments the for investment in subsidiaries and jointly controlled :entity — Authorized but yet not contracted for — Contracted not but provided for Commitments the for acquisition of ,property and plant equipment of subsidiaries : — Contracted not but provided for	21,124.04	4,688.66

Dividends 9.

for paid was dividend no (capitalized was fund reserve no and 2013 year the for paid was dividend No .(2012

receivables Greencool the for treatment Accounting 10.

determination the After ",years various for Company the of" Directors the of Report "the in out set As confirmed the on based ,will Company the ,proportion settlement debt abovementioned the of adjust and ,statement income and sheet balance 2005 the retrospectively adjust ,proportion recoverable December 31 2007, December 31 2006, December 31 at as sheets balance the in items relevant the ".respectively 2012 December 31 and 2011 December 31 2010, December 31 2009, December 31 2008,

relevant the and Company the of departments relevant the of opinion the with accordance In method application prospective the adopted has Company the ,standards accounting the of requirements periods prior of statements accounting the adjust not did and treatments accounting relevant the in .retrospectively

based ,year the for 89,950,024.68RMB by assets on losses impairment the reduced has Company The .periods prior of values carrying the and case the to relation in recovered actually amount the on

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12.

receivable Accounts 1.

categories by receivable accounts of Disclosure) 1(

	Closing balance
	Carrying	amount	Provision bad for debts
Category	Amount	% total of balance	Amount	% total of balance
Individually significant and to subject separate provision
Ageing analysis	807,479,424.07	95.43	152,560,754.49	18.89
Greencool Companies	38,689,983.28	4.57	22,726,941.64	58.74
Subtotal	846,169,407.35	100.00	175,287,696.13	20.72
Individually insignificant but to subject separate provision
Total	846,169,407.35	100.00	175,287,696.13	20.72

table above from Continued

	Opening balance
	Carrying	amount	Provision for debts bad
Category	Amount	% total of balance	Amount	% total of balance
Individually significant and to subject separate provision
Aging analysis	803,290,236.75	95.40	165,054,919.79	20.55
Greencool Companies	38,689,983.28	4.60	22,726,941.64	58.74
Subtotal	841,980,220.03	100.00	187,781,861.43	22.30
Individually insignificant but to subject separate provision
Total	841,980,220.03	100.00	187,781,861.43	22.30

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

(continued (receivable Accounts 1.

(continued (category by receivable accounts of Disclosure) 1(

:method ageing using by debts bad provided category the in receivable Accounts

	balance Closing			balance Opening
Carrying amount				Carrying	amount
Age	Amount	total of % balance	for Provision debts bad	Amount	total of % balance	for Provision debts bad
Within months three	630,662,395.32	74.53		631,388,149.75	74.99
Over months three six within but months	24,931,888.10	2.95	2,493,188.81	1,265,442.13	0.15	126,544.21
months six Over one within but year	3,635,149.94	0.43	1,817,574.97	11,416,538.58	1.36	5,708,269.29
year one Over	148,249,990.71	17.52	148,249,990.71	159,220,106.29	18.91	159,220,106.29
Total	807,479,424.07	95.43	152,560,754.49	803,290,236.75	95.41	165,054,919.79

receivable accounts for provision in Movements) 2(

	Opening	Provision the for	Decrease year the for		Closing
	balance	year	Reversal	off-Write	balance
2013	187,781,861.43		10,574,444.71	1,919,720.59	175,287,696.13

off written were that receivable Accounts) 3(

Company name	Nature of accounts receivable	Amount written off-	Reason for off-write	Arising from related party transactions not or
Unrelated parties	Loans	1,919,720.59	Not recoverable due long to outstanding	No
Total		1,919,720.59

more or 5% holding shareholders from due amount no was there 2013, December 31 at As) 4( at As .receivable accounts of balance the in Company the of shares voting the of) 5% including( including (more or 5% holding shareholders from due amount no was there 2012, December 31 .receivable accounts of balance the in Company the of shares voting the of) 5%

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

• (continued (receivable Accounts 1.
• receivable accounts five Top) 5(

2013

.No	Relationship with the Company	Amount	Ageing	Percentage of total the accounts receivable amount (%)
1 Top	Third party	220,116,731.07	Within three months	26.01
2 Top	Third party	161,597,029.09	Within three months	19.10
3 Top	Third party	70,170,707.42	Within three months	8.29
4 Top	Subsidiary	44,829,785.25	Within three months	5.30
5 Top	Subsidiary	40,509,868.28	Within three months	4.79
Total		537,224,121.11		63.49

2012

Relationship with the Company	Amount		Percentage of total the accounts receivable amount (%)
			28.31
Third party	195,596,319.17	three months	23.23
			4.84
			2.90
Subsidiary	19,748,315.16	three months	2.35
	518,922,641.40		61.63
	Third party Subsidiary Third party	238,358,502.63 40,762,559.25 24,456,945.19	Ageing Within three months Within Within three months Within three months Within

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

receivables Other 2.

category by receivables other of Disclosure) 1(

	Closing balance
	Carrying	amount	Provision for	debts bad
Category	Amount	total of % balance	Amount	total of % balance
Individually significant and subject separate to provision
Aging analysis	1,059,189,446.30	98.53	21,305,760.56	2.01
Greencool Companies	15,754,600.00	1.47	8,185,215.74	51.95
Subtotal	1,074,944,046.30	100.00	29,490,976.30	2.74
Individually insignificant subject but separate to provision
Total	1,074,944,046.30	100.00	29,490,976.30	2.74

table above from Continued

	Opening balance
	Carrying	amount	Provision	bad for debts
Category	Amount	% total of balance	Amount	% total of balance
Individually significant and to subject separate provision
Ageing analysis	1,038,532,918.70	98.51	23,743,419.18	2.29
Greencool Companies	15,754,600.00	1.49	9,962,961.47	63.24
Subtotal	1,054,287,518.70	100.00	33,706,380.65	3.20
Individually insignificant but to subject separate provision
Total	1,054,287,518.70	100.00	33,706,380.65	3.20

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

(continued (receivables Other 2.

(continued (category by receivables other of Disclosure) 1(

:analysis ageing using by debts bad provided category the in receivables Other

	Closing balance			Opening balance
	Carrying	amount		Carrying	amount
Age	Amount	total of % balance	Provision for debts bad	Amount	total of % balance	Provision for debts bad
Within months three	1,036,319,802.72	96.41		1,013,443,126.16	96.13
three Over but months
within months six	964,388.25	0.09	96,438.82	610,204.95	0.06	61,020.50
Over months six within but
year one	1,391,867.18	0.13	695,933.59	1,594,377.82	0.15	797,188.91
year one Over	20,513,388.15	1.91	20,513,388.15	22,885,209.77	2.10	22,885,209.77
Total	1,059,189,446.30	98.54	21,305,760.56	1,038,532,918.70	98.51%	23,743,419.18

receivables other for provision in Movements) 2(

	Opening	Provision	Decrease for	year the	Closing
	balance	for year the	R eversal	off-Write	balance
2013	33,706,380.65		4,215,404.35		29,490,976.30

.Nil :off-written were that receivable Other) 3(

more or 5% holding shareholders from due amount no was there 2013, December 31 at As) 4( at As .receivables other of balance the in Company the of shares voting the of) 5% including( including (more or 5% holding shareholders from due amount no was there 2012, December 31 .receivables other of balance the in Company the of shares voting the of) 5%

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

• (continued (receivables Other 2.
• receivables other five Top) 5(

2013

.No	Relationship with the Company	Amount	Ageing	Percentage the of total other receivables amount (%)
1 Top	Subsidiary	204,743,457.59	Within three months	19.05
2 Top	Subsidiary	164,866,548.06	Within three months	15.34
3 Top	Subsidiary	117,537,906.92	Within three months	10.93
4 Top	Subsidiary	66,017,919.94	Within three months	6.14
5 Top	Subsidiary	63,588,915.14	Within three months	5.92
Total		616,754,747.65	—	57.38

2012

.No	Relationship with the Company	Amount	Ageing	Percentage the of total other receivables amount (%)
1 Top	Subsidiary	211,154,792.61	Within three months	20.03
2 Top	Subsidiary	170,029,177.84	Within three months	16.13
3 Top	Subsidiary	137,171,745.54	Within three months	13.01
4 Top	Subsidiary	117,511,986.92	Within three months	11.15
5 Top	Subsidiary	63,588,915.14	Within three months	6.03
Total		699,456,618.05	—	66.35

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

investments equity term-Long 3.

Investee	Accounting treatment	cost Investment	Opening balance	Changes	Closing balance	Equity % held interest	Voting % held rights	Provision impairment for	Impairment in provided current the year	dividend Cash year current in
Huayi	Equity	24,171,468.64	50,344,878.42	25,318,824.04	75,663,702.46	3.74	3.74
Compressor Attend	method Equity	2,000,000.00	3,285,850.81	(116,634.72)	3,169,216.09	20.00	20.00
Hisense Whirlpool	method Equity method	225,000,000.00	209,818,988.58	1,297,493.73	211,116,482.31	50.00	50.00
Hisense	Equity Hitachi method	332,821,597.45	484,476,011.09	219,075,261.82	703,551,272.91	49.00	49.00			73,500,000.00
method Equity Subtotal		583,993,066.09	747,925,728.90	245,574,944.87	993,500,673.77					73,500,000.00
Guangdong	method Cost	155,552,425.85	155,552,425.85		155,552,425.85	70.00	70.00
Refrigerator Guangdong Air Conditioner	method Cost	281,000,000.00	281,000,000.00		281,000,000.00	60.00	60.00	59,381,641.00
Guangdong Freezer	method Cost	15,668,880.00	15,668,880.00		15,668,880.00	44.00	44.00
Kelon Household Electrical Appliance	method Cost	2,500,000.00	2,500,000.00		2,500,000.00	25.00	25.00
Fittings Kelon	method Cost	32,634,553.70	32,634,553.70		32,634,553.70	70.00	70.00
Rongsheng Plastic	method Cost	53,270,064.00	53,270,064.00		53,270,064.00	44.92	44.92
Mould Kelon	method Cost	50,323,475.20	50,323,475.20		50,323,475.20	40.22	40.22
&I Wangao	method Cost E	600,000.00	600,000.00		600,000.00	20.00	20.00
Jiake Kelon Weili Kelon	method Cost method Cost	42,000,000.00	42,000,000.00		42,000,000.00	70.00 55.00	70.00 55.00
YingKou Refrigerator	method Cost	84,000,000.00	84,000,000.00		84,000,000.00	42.00	42.00
Kelon Jiangxi	method Cost	147,763,896.00	147,763,896.00		147,763,896.00	60.00	60.00
Hangzhou Kelon	method Cost	24,000,000.00	24,000,000.00		24,000,000.00	100.00	100.00
Yangzhou Refrigerator	method Cost	252,356,998.00	252,356,998.00		252,356,998.00	74.33	74.33
Kelon Zhuhai	method Cost	189,101,850.00	189,101,850.00		189,101,850.00	75.00	75.00
Shenzhen Kelon	method Cost	95,000,000.00	95,000,000.00		95,000,000.00	95.00	95.00
Kelon Development	method Cost	11,200,000.00	11,200,000.00		11,200,000.00	100.00	100.00
Chengdu Refrigerator	method Cost	50,000,000.00	50,000,000.00		50,000,000.00	100.00	100.00
Beijing Refrigerator	method Cost	92,101,178.17	92,101,178.17		92,101,178.17	55.00	55.00			15,400,000.00

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

(continued(investments equity term-Long 3.

Investee	Accounting treatment	cost Investment	Opening balance	Changes	Closing balance	Equity % held interest	Voting % held rights	Provision impairment for	Impairment in provided current the year	dividend Cash year current in
Air Shandong Conditioner	method Cost	567,175,477.74	567,175,477.74		567,175,477.74	100.00	100.00
Air Zhejiang Conditioner	method Cost	54,523,643.83	54,523,643.83		54,523,643.83	51.00	51.00
Mould Hisense	method Cost	121,628,013.09	121,628,013.09		121,628,013.09	78.70	78.70			23,930,018.20
Shandong Refrigerator	method Cost	275,000,000.00	100,000,000.00	175,000,000.00	275,000,000.00	100.00	100.00
Kelon Xinjiang	method Cost	100,000.00	100,000.00		100,000.00	2.00	2.00
Kelon Fujian	method Cost	100,000.00	100,000.00		100,000.00	2.00	2.00
Hisense International Marketing	method Cost	3,800,000.00	3,800,000.00		3,800,000.00	12.67	12.67			4,750,000.00
by Subtotal method cost		2,601,400,455.58	2,426,400,455.58	175,000,000.00	2,601,400,455.58			59,381,641.00		44,080,018.20
Total		3,185,393,521.67	3,174,326,184.48	420,574,944.87	3,594,901,129.35			59,381,641.00		117,580,018.20

costs operating and revenue Operating 4.

costs operating and revenue Operating) 1(

Item	Amount for year the	Amount for previous year
Revenue from principal operations	14,847,409,656.42	10,893,593,680.70
Revenue from other operations	575,806,705.13	2,512,754,821.87
Total operating revenue	15,423,216,361.55	13,406,348,502.57
of Costs principal operations	11,744,449,377.16	8,563,618,825.63
Costs other of operations	377,229,036.32	2,214,424,604.03
Total operating costs	12,121,678,413.48	10,778,043,429.66

(products by (operations Principal) 2(

	Amount	year the for		Amount previous for year
Products	Operating revenue	Operating costs	Operating revenue	Operating costs
Refrigerators	7,729,311,952.49	6,119,957,171.34	6,205,246,053.64	4,802,391,754.86
-Air conditioners	5,954,086,569.98	4,720,321,732.33	3,989,222,718.97	3,221,180,133.02
Others	1,164,011,133.95	904,170,473.49	699,124,908.09	540,046,937.75
Total	14,847,409,656.42	11,744,449,377.16	10,893,593,680.70	8,563,618,825.63

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

• (continued(costs operating and revenue Operating 4.
• (regions by (operations Principal) 3(

	Amount	for year the		Amount for previous year
Region	Operating revenue	Operating costs	Operating revenue	Operating costs
Domestic	14,847,409,656.42	11,744,449,377.16	10,893,593,680.70	8,563,618,825.63
Overseas
Total	14,847,409,656.42	11,744,449,377.16	10,893,593,680.70	8,563,618,825.63

Company the of customers five top the from revenue Operating) 4(

2013

.No	Amount for year the	Percentage the of total revenue from principal operations the of Company (%)
1 Top	2,362,532,111.54	15.91
2 Top	1,526,834,995.72	10.28
3 Top	444,964,164.32	3.00
4 Top	254,810,985.78	1.72
5 Top	196,101,574.09	1.32
Total	4,785,243,831.45	32.23

2012

.No	Amount for year the	Percentage the of total revenue from principal operations the of Company (%)
1 Top	1,311,005,853.74	12.03
2 Top	986,464,145.61	9.06
3 Top	205,057,899.02	1.88
4 Top	180,757,884.05	1.66
5 Top	148,982,418.42	1.37
Total	2,832,268,200.84	26.00

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

gain Investment 5.

gain investment of Summary) 1(

Item	Amount for year the	Amount for previous year
from Gain term-long equity investment — cost the
method	44,080,018.20	15,826,368.60
from Gain term-long equity investment — equity the
method	299,785,829.53	190,097,006.83
from Gain disposal of term-long equity investment	23,335,449.54	) 78,121,106.88 (
Total	367,201,297.27	127,802,268.55

method cost the — investments equity term-long from Gain) 2(

Investee	Amount for year the	Amount for previous year
Beijing Refrigerator	15,400,000.00	5,500,000.00
Hisense Mould	23,930,018.20	6,526,368.60
Hisense International Marketing	4,750,000.00	3,800,000.00
Total	44,080,018.20	15,826,368.60

method equity the — investment equity term-long from Gain) 3(

Investee	Amount for year the	Amount for previous year
Huayi Compressor	6,029,708.70	6,634,219.63
Hisense Whirlpool	1,297,493.73	3,430,870.26
Attend	) 116,634.72	) ( 143,000.95 (
Hisense Hitachi	292,575,261.82	180,174,917.89
Total	299,785,829.53	190,097,006.83

(RMB in denominated are amounts ,stated expressly otherwise Unless(

parent the of statements financial the of items major to Notes 12. (continued(

statement flows cash on information Supplementary 6.

	Amount for	Amount for
Supplementary information	year the	previous year
1. Reconciliation of profit net cash to flows from
operating :activities
profit Net	550,599,451.61	336,604,324.71
:Add Provision assets for impairment	13,221,334.10	33,546,203.90
Depreciation fixed of ,assets depletion and oil of assets gas
and depreciation of productive biological assets	27,038,192.20	32,407,602.37
Amortization of intangible assets	8,781,079.24	9,201,933.74
Amortization of term-long prepaid expenses
on Loss disposals fixed of ,assets intangible and long other term assets Gain ( denoted "in ("bracket	100,318.32	54,925.62
on Loss retirement fixed of assets Gain ( denoted in ("bracket"
from Loss scrapping in value fair Gain ( denoted in ("bracket"
Financial expenses Gain ( denoted "in ("bracket		7,576,200.74
Investment Gain (loss denoted "in ("bracket	) 367,201,297.27	) ( 127,802,268.55 (
Decrease in deferred assets tax Increase ( denoted in ("bracket"
Increase in deferred tax liabilities Decrease ( denoted in ("bracket"
Decrease in inventory Increase ( denoted "in ("bracket	) 620,722,778.99	) ( 117,023,469.68 (
Decrease in operating receivable Increase ( denoted in
("bracket"	) 1,296,929,392.15	) ( 2,422,836,491.42 (
Increase in operating payable Decrease ( denoted in
("bracket"	1,610,782,015.39	2,864,883,692.35
Others
Net flows cash from operating activities	) 74,331,077.55 (	616,612,653.78
2. Significant investing and financing activities not
involving cash receipts and :payment Liabilities converted into equity
Convertible company debentures within due year one
Fixed assets under finance leases
Net 3. movement cash in cash and equivalents :
Cash the at of end period the	194,913,820.28	342,912,430.57
Less Cash : the at beginning of period the	342,912,430.57	98,869,779.84
Add Cash : equivalents the at of end period the
Less Cash : equivalents the at beginning of period the
Net increase cash in cash and equivalents	) 147,998,610.29 (	244,042,650.73

(RMB in denominated are amounts ,stated expressly otherwise Unless(

information Supplementary 13.

loss or profit recurring-non of Summary 1.

Item	Amount for year the	Amount for previous year
Losses and profits from disposal non of current- assets Tax or return exemption without proper authorization Government grants recognized in profits the losses or excluding( those government grants are that closely related the to 'Company business s are and received with fixed amounts with or fixed percentage on based unified	23,631,537.09	97,537,681.25
standards promulgated by government ( Interests received from entities than other financial institutions recognized profits in losses or Gain arising the from difference between investment cost on subsidiaries associates and jointly controlled entities the and value fair the of assets net attributable the to .Company	82,700,643.38	23,057,674.18
Gain loss or arising non from monetary- assets exchange Gain loss or arising from entrusted investment or entrusted asset management Asset impairment provided current in due year forced to e (majeure natural .g. (disasters Gain loss or arising debt from restructuring Corporate restructuring (costs staff .g.e replacement costs costs and the during of course integration ( Gain loss or arising the from difference between fair the and value transaction in price obviously unfair transactions Net of profit subsidiaries acquired under common control from beginning year of the to merger date Gain loss or arising from contingencies irrelevant the to	) 52,492,777.86 (
Company normal s' business or Gain from loss changes fair in of values financial assets and liabilities for-held trading- for except hedging contracts and disposal of financial and assets liabilities for-held trading and available sale-for- financial assets Reversal of provision for debts-bad trade of receivable to subject separate provision Gain loss or arising from entrusted loan granted other to entities Gain loss or arising from changes fair in of value investment properties the under value fair model off-One adjustments profit to as loss or required by taxation and accounting and laws regulations	89,950,024.68
Consignment fee income arising from entrusted operations non Other operating- income and expense other the than aforementioned items Other or profit items loss meeting the definition non of	14,306,916.33	3,348,427.38
recurring profit loss or non Total recurring- profit loss or Less Effect : non of recurring- or profit after loss taxation non Net recurring- profit loss or :Less effect Net non of recurring- profit loss or attributable	158,096,343.62 4,249,768.03 153,846,575.59	123,943,782.81 2,187,048.64 121,756,734.17
to minority (interests (tax after Non recurring- profit loss or attributable to ordinary	) 7,254,093.11 (	1,172,837.99
shareholders the of Company	161,100,668.70	120,583,896.18

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(information Supplementary 13.

:share per earnings and asset net on Return 2.

2013

	Weighted average	Earnings share per
Profit the for reporting period	of on return assets net (%)	Basic earnings share per	Diluted earnings share per
profit Net attributable to ordinary
shareholders the of Company	58.16	0.92	0.92
profit Net attributable to ordinary
shareholders the of Company after
deducting non recurring- gain loss or	50.60	0.80	0.80

2012

	Weighted average	Earnings share per
Profit the for reporting period	of on return assets net (%)	Basic earnings share per	Diluted earnings share per
profit Net attributable to ordinary shareholders the of Company	61.95	0.53	0.53
profit Net attributable to ordinary
shareholders the of Company after
deducting non recurring- gain loss or	51.54	0.44	0.44

statements financial in items exceptional for Reasons 3.

Statement Item	Closing balance amount or( the for current (year	Opening balance ( amount or for ) year last	Change %	Reasons change for
Financial assets for-held trading	67,115,019.35	10,678,293.47	528.52%	Mainly due changes to the in exchange rate undue for forward transactions as end the at the of Reporting Period leading increases to
Notes receivable	2,160,801,733.50	1,558,766,192.61	38.62%	Mainly to due increases notes in received the by Company as end the at the of Reporting ,Period the and promotion of electronic notes the by Company reduce to endorsement notes of receivable
Other receivables	546,337,496.66	342,722,165.14	59.41%	Mainly due increases to in subsidies receivable at as the the of end Reporting Period
Inventories	2,496,359,854.46	1,738,441,110.15	43.60%	Mainly to due increases planned in in increase product inventory

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(information Supplementary 13.

(continued(statements financial in items exceptional for Reasons 3.

	Closing balance amount or( the for	Opening balance ( amount or
Statement Item	current (year	for ) year last	Change %	Reasons change for
term-Long equity investments	997,500,673.77	751,925,728.90	32.66%	Mainly to due relatively significant increase net the in of profit Hisense Hitachi joint a , venture the for , as period compared the to previous period
Construction progress in	253,977,558.18	68,344,253.58	271.62%	Mainly due increases to in investment by Shandong Refrigerator a , subsidiary
Deferred assets tax	36,616,861.02	7,294,688.02	401.97%	Mainly to due continued generation of by profits the subsidiaries at as the the of end Reporting and Period thereby increases in number the of subsidiaries qualifying the for provision of allowance deferred for tax assets
term-Short borrowings	191,681,513.02	30,309,453.94	532.41%	Mainly due increases to in the factoring and securing accounts of receivable for period the
Accounts payable	3,480,510,368.16	2,335,425,936.47	49.03%	Mainly to due increases planned in in increase product inventory
Taxes payable	( 156,766,531.00 )	( 48,994,818.36 )	( 219.97%	Mainly) to due increases in credits tax value for tax added
Selling and distribution expenses	3,678,122,171.15	2,731,894,401.50	34.64%	Mainly to due increases scale the in for sale of period the to leading corresponding increases variable in costs
Financial expenses	( 27,474,387.27 )	38,999,591.86	( 170.45%	Mainly) to due discounts of suppliers
Impairment on losses assets	( 66,379,836.60 )	40,896,674.83	( 262.31%	Mainly) to due corresponding adjustments debt bad in provisions upon receiving the execution for monies the Greencool cases
from Gain in changes value fair	56,596,312.10	( 16,637,512.22 )	( 440.17%	Mainly) due changes to undue in forward transactions the for and period in changes due transactions carried forward
Non operating- income	114,840,364.46	64,651,884.85	77.63%	Mainly year to due year-to- increases in government subsidies received the for period
Non operating- expenses	17,536,717.20	7,393,693.62	137.18%	due Mainly losses to from of disposal assets fixed

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(information Supplementary 13.

(continued(statements financial in items exceptional for Reasons 3.

Statement Item	Closing balance amount or( the for current (year	Opening balance ( amount or for ) year last	Change %	Reasons change for
tax Income expenses	53,618,940.95	10,548,434.72	408.31%	Mainly due increases to in the aggregate profit all of companies
Cash received sales from of and goods rendering services of	12,720,006,814.03	9,072,544,890.41	40.20%	Mainly to due increased for sales period the to leading corresponding increases payment in received
cash Other received concerning operating activities	1,163,188,431.87	677,063,467.75	71.80%	Mainly the to due of receipt energy saving- subsidies the and execution monies the for Greencool cases
Cash for paid purchases of commodities and receipt services of	8,442,872,755.59	5,062,047,166.06	66.79%	Mainly due increases to in sales to leading increases payment in goods for
paid Cash for and to employees	2,136,796,995.31	1,540,550,623.47	38.70%	Mainly to due increases sales in to leading corresponding increases salaries in
Cash for paid and taxes surcharges	952,876,720.89	669,911,064.46	42.24%	Mainly due increases to in sales to leading increases taxes in
paid Cash other for operating activities	2,812,073,099.38	2,063,033,938.65	36.31%	Mainly due increases to in collection and payment transfer energy of saving- subsidies for period the
Cash received from on returns investments	73,500,000.00	49,000,000.00	50.00%	Mainly due increases to in distribution Hisense by Hitachi joint a , venture
cash Net received from disposals fixed of ,assets intangible and assets long other assets term	14,909,409.58	1,432,470.09	940.82%	Mainly due increases to in cash received the from of disposal assets fixed
Cash for paid acquisition fixed of ,assets intangible and assets -long other assets term	565,717,025.69	163,238,148.25	246.56%	Mainly due increases to in investment by Shandong Refrigerator a , subsidiary
Cash received from borrowings	406,785,264.38	1,767,206,418.19	( 76.98%	Mainly) to due decreases in financing activities for period the
Cash for paid repayment of borrowings	244,645,738.20	2,671,252,062.37	( 90.84%	Mainly) to due decreases in financing activities for period the
Cash for paid distribution of dividends or profit , interest expenses	15,790,611.76	37,329,177.94	( 57.70%	Mainly) to due decreases in financing activities for period the to leading corresponding decreases interest in expenses

(RMB in denominated are amounts ,stated expressly otherwise Unless(

(continued(information Supplementary 13.

summary years-Five 4.

					:Unit 0000'RMB
Statement item	2013	2012	2011	2010	2009
Total operating revenue	2,436,002.13	1,895,891.53	1,848,866.32	1,769,032.36	1,297,159.17
Total profit	132,274.83	74,285.40	24,669.96	62,770.86	19,631.55
Income tax	5,361.89	1,054.84	2,125.04	3,158.83	2,329.22
profit Net	126,912.94	73,230.56	22,544.92	59,612.03	17,302.34
profit Net attributable to equity holders of parent the	123,900.51	71,776.47	22,701.51	58,527.77	15,644.95
Minority interests	3,012.43	1,454.09	(156.59)	1,084.26	1,657.39
Distribution of dividends

table above from Continued

Statement item	31 December 2013	31 December 2012	31 December 2011	31 December 2010	31 December 2009
Total assets	1,196,470.93	920,033.46	763,543.96	801,896.89	612,836.59
Total liabilities	878,137.16	732,712.66	647,462.47	710,802.11	601,759.78
assets Net	318,333.77	187,320.80	116,081.49	91,094.79	11,076.81
Total equity attributable equity to holders of parent the	274,873.11	151,204.22	80,512.36	54,124.14	) (26,674.83
Minority interests	43,460.66	36,116.58	35,569.13	36,970.65	37,751.63
Total equity	318,333.77	187,320.80	116,081.49	91,094.79	11,076.81

(RMB in denominated are amounts ,stated expressly otherwise Unless(

statements financial of Approval 14.

for approved were 2013 in Company the of statements financial to notes the and statements financial The 2014. in Company the of Board the of session eighth the of meeting first the at publication