Medlive Technology Co., Ltd. — Annual Report 2014

Apr 22, 2015

Contents

Company Profile . . . . . . . . . . 1
Major Events Calendar . . . . . . . . . 2
Chairman s' Statement . . . . . . . . . 4
Management Discussion and Analysis . . . . . . . . 6
Corporate Governance Report . . . . . . . . . 19
Profiles of ,Directors Supervisors & Members the of Senior Management . . . . 33
Report the of Directors . . . . . . . . . 37
Report the of Supervisory Committee . . . . . . . . 60
Corporate Information . . . . . . . . . 62
Financial Statements Prepared in accordance with China Accounting Standards for Business Enterprise . . . 63

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 World Appliance China 2014 the at 2014, In .products and technologies its for honors many awarded been has and ,industry Appliance Electrical Household China 2014 the won Company the of refrigerator intelligent of generation latest the ,Expo Cross) 倍多分(Fen Duo Bei Hisense ,Germany ,Berlin in held) IFA (Funkausstellung International the At .Prize Product Industry Refrigerator China the At .award" Innovation Technology 2014 "the won successfully refrigerators door-French "Industry Refrigerator the in Technology Moisturizing for Brand Leading 2013-2014 "the won refrigerators Ronshen ,Summit .award" Refrigerators Healthy for Brand Leading "the receive to player industry only the was refrigerators Hisense and award Leading "including awards major several obtained conditioners-air Hisense ,Summit Industry conditioner-Air Chinese the At conditioner-air the of" Product Inverter Pioneering "and" Technology Intelligent of Star ","Technology Intelligent for Brand floor style split – conditioners-air Style Cabinet Artistic Series Supreme Intelligent 89 Hisense 2014. in industry conditionerair the of award" Technology saving-Energy for Brand Leading "the received conditioners-air Kelon 2014. in industry in Competition Patent Sixteenth the at award" Design Outlook Outstanding "the obtained conditioners-air room standing refrigerators Hisense ,"China in Brands Appliances Electric Household of Assessment 2013-2014 "the in ,addition In .China "Industry Freezer the in Brands Ten Top "and" Industry Refrigerator the in Brands Ten Top "the awarded were freezers and ."Industry conditioner-Air Household the in Brands Ten Top "the awarded were conditioners-air Kelon and conditioners-air Hisense and respectively

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

January

.District Shunde ,Street Ronggui at Race Run Long Day s'Year New" Cup Kelon Hisense "th27 the sponsored Kelon Hisense District Shunde ,Street Ronggui at event sports major this sponsor to Kelon Hisense for year consecutive th26 the was This 1988. since

March

than more outshone Kelon Hisense of refrigerator intelligent of generation latest the ,Expo World Appliance China 2014 the At 2014. Prize Product Appliance Electrical Household China the won and appliances home new 230

April

with" .Ltd .,Co Appliances Electrical Hisense Guangdong "to name its changed officially" .Ltd .,Co Fittings Kelon Guangdong" .business of scope its to appliances kitchen of addition the

May

with Energy New Generating and Health Enhancing "of theme the under Summit Industry Refrigerator China 2014 the At in Technology Preservation Moisture in Brand Leading 2013-14 "the won refrigerators Ronshen ,"Technologies Intelligent Healthy in Brand Leading "the receive to player industry only the was refrigerators Hisense and award" Industry Refrigerator Double and Refrigerating Double in Breakthrough "the awarded was refrigerator WP-648BCD Ronshen .award" Refrigerators was refrigerator FYM1WKK-439BCD Ronshen and ,award" Year the for Industry Refrigerator in Technology Circulation of Star "the won also WDG-440BCD refrigerator Hisense .award" Industry Refrigerator in Design Space of Star "the awarded won product A/WDG-253BCD Hisense whereas ,award" Industry Refrigerator in Preservation Food and Function bacteria-Anti .award" Industry the in Technology Health Innovative "the

July

under Center Exhibition International Qingdao at held was) SINOCES (Show Electronics Consumer International China The refrigerators series 440 door-French Cross Hisense ,which At ."Life Intelligent and Interconnection Universal "of theme the and sophisticated more and ,design door-French cross innovative their for award" Product Popular Most 2014 "the received of Design Industrial in Leaders Innovative "the won refrigerators door-French Cross Ronshen .method storage food healthy .design space rational and design exterior door-French cross innovative their for" China in Electronics Consumer International

Preservation Food on Meeting Assessment Expert sector-Cross – Tongue the of Tip the on Safety the Safeguarding" refrigerators Ronshen .Beijing in held was Association Safety Food International The by organized" Technology Refrigeration Food Safe for Recommendation Sole "the received technology preservation food ion-negative nano Nanofresh with equipped be to world the in brand refrigerator first the was and ,Association Safety Food International The from" Refrigerator in Storage .Association Safety Food International The by recommended

August

"(UET (Test Experience User "the awarded were Refrigerator Ronshen and Refrigerator Hisense ,Conditioner Air Hisense the for Release Press cum Industries conditioner-Air and Refrigerator the of Index Experience User 2014 the at certificate Appliance Electric Household China the by organized Products conditioner-Air and Refrigerator of Indices Experience User experience user the for certificate A grade highest the with awarded also was Refrigerator Hisense whereas ,Institute Research .tests

organized-co" Time Small a for Intelligence Big "of theme the under Summit Industry conditioner-Air Chinese 2014 the At Leading "and" Products Intelligent of Star ","Brand Intelligent Leading "including awards major several obtained Conditioner-Air Hisense ,Grid State the and Center Information State the of Development Resources Information of Department the by Leading "the received Conditioner-Air Kelon 2014. in Freeze of Year the in industry conditioner-air the of" Product Inverter Cabinet Artistic QV latest its and 2014, in Freeze of Year the in industry conditioner-air the of award" Brand saving-Energy .award" 2014 in Freeze of Year the in Quality of Star "the awarded were 2014 in launched conditioners-air Style

Calendar Events Major

September

Household of Assessment 2013-2014 "the ,Informatization and Industrialization of Department the of guidance the Under which at ,Institute Research Appliance Electric Household China the by organized was" China in Brands Appliances Electric consolidated the With .named were industries appliances household other and refrigerator ,conditioner-air the of brands ten top refrigerators Hisense ,consumers of ability and marketing and development sustainable in capabilities as such ,strength "Industry Freezer the in Brand Ten Top "and" Industry Refrigerator the in Brand Ten Top "as named were freezers and conditioner-air household the in brands ten top as named were conditioner-air Kelon and conditioner-air Hisense .respectively .industry

Chinese the of power innovative the Demonstrating .Germany ,Berlin in held was) IFA (Funkausstellung International The won successfully refrigerators door-French Cross) 倍多分(Fen Duo Bei Hisense ,world the to enterprises appliances household ,needs customer meet to innovations and technologies differentiation their with 2014 of" Innovation Technology of Award "the .consumers the and world the around peers its of front in before Refrigerator Hisense of power innovative the showing

October

named was Conditioning-Air Kelon Hisense ,Supervision Quality China by organized 2014 in China of Month Quality the At ."China in Integrity and Quality Outstanding with Enterprise Typical "the as

November

conditioners-air room standing floor style split – conditioners-air Style Cabinet Artistic Series Supreme Intelligent 89 Hisense .China in Competition Patent Sixteenth the at" Award Design Outlook Outstanding "the obtained) 12011K(

December

.Province Guangdong of Products Famous as named were freezers Ronshen and conditioners-air Kelon s'Company The

:Shareholders Dear

.("Period Reporting "the (2014 December 31 ended year the for Company the of report annual the present to pleased am I

to moderate a to trend speed high a from shifted gradually economy PRC the of growth the ,Period Reporting the During factors to due ,time same the At .development economic the on pressure downward greater was there and momentum high the during policies stimulation appliances household the by demand overdraft and market property sluggish continued as such Market China of statistics the to According .weak was growth its and diminished market PRC the in demand ,periods previous decrease year-to-year recorded industry refrigerator domestic the of volume retail the ,)CMM (Limited Company Monitor of decrease year-to-year a recorded industry refrigerator the of volume retail the whereas ,February since month every for significant with afterwards declined but promisingly started market conditioner-air the ,hand other the On 2014. in 9.33% 1.35% a was There .August since growth negative a recorded and year the of half second the during growth the in slowdown household the of era growth high the and 2014 in market conditioner-air the of volume retail the in decrease year-to-year slowing and downturn economic global as such factors to due ,market export the to As .end an to came industry appliances in ,Department Customs the of statistics the to According .market overseas the in slack remained demand ,demand of down the and technologies internet mobile of development swift the on Riding .year-to-year 2.7% by decreased products conditionerair the of that and 8.9%, of growth year-to-year a marked products freezer and refrigerator the of volume export the 2014, artization ,intelligentization towards heading further is industry appliance household the ,homes intelligent of popularization .development end-high and

,advantages product building "of strategies operating the to adhered strictly Company the ,Period Reporting the During and" efficiency and scale ensuring and efficiency system enhancing ,model marketing reforming ,quality service improving ,million 26534 RMB of revenue operating recorded Company The .businesses principal the in growth stable maintained the of 48.68% for accounted business machine washing and refrigerator the from revenue the which of 9.84%, of increase yearto-year a representing ,million 24371 RMB of revenue operating principal and 8.93%, of increase year-to-year a representing accounted business conditioner-air the from revenue; 1.01% of decrease year-to-year a representing ,revenue operating principal business sales domestic the; 22.84% of growth year-to-year a representing ,revenue operating principal the of 46.54% for export the whereas 9.95%, of growth year-to-year a representing ,million 17179RMB of revenue operating principal a recorded 9.58%. of growth year-to-year a representing ,million 7192RMB of revenue operating principal a recorded business sales ,expenses sales in increase the and business refrigerator the of margin profit gross the in decrease the of result a as ,However to attributable profit net recorded Company the ,Period Reporting the During .profitability reduced recorded Company the year-to-year a representing 0.50,RMB of share per earnings and million 672RMB of company listed the of holders equity financial s'Company The .points percentage 3.63 by decreased Company the of ratio asset-to-debt The 44.44%. of decrease .improved further was position

the uphold to continued Company the of business refrigerator the ,technology of development and research of respect In ,experience user and products its of intelligentization of level the enhancing further of approach development and research remote and healthy ,moisturizing ,preservation food ,saving-energy as such areas in technologies the upgrading on focused held) IFA (Funkausstellung International the At .upgrades function and innovations technology in persisted and ,control Technology 2014 "the won successfully refrigerators door-French Cross)倍多分(fen duo bei Hisense ,Germany ,Berlin in of business conditioner-air The .needs user meet to innovations and technologies differentiation their for award" Innovation such measures through ,differentiation and intelligentization product of strategies the consolidate to continued Company the enhanced and advantages product established ,designs outlook innovative and upgrades function ,innovations technical as internet developed-self their for ,conditioners-air intelligent Hisense ,Forum Innovation World the At .competitiveness product ,award" Innovation World Kangaroo Golden "the won ,globe the around model first the is which conditioners-air intelligent ,Industry conditioner-Air Chinese the of Conference Annual) Seventh (2014 the At .honor global major and unique a was which Best the with Product "and" Innovations Intelligent "of awards intelligence major two the won conditioners-air Hisense .products intelligent the in experience user innovative and technologies advance their for" Experience Intelligent

Statement s'Chairman

and momentum growth economic weak ,economy PRC the on pressure downward persistent the 2015, into ahead Looking the since ,Furthermore .market domestic the in demand insufficient to lead will market property the of downturn continual the on is war Price .levels high at remains industry conditioner-air the of inventory overall the 2015, year of commencement global the ,time same the At .operation business for situation tough rather a face will industry conditioner-air the and verge recovery weak expected an with ,crisis financial international the after adjustment depth-in of phase the in still is economy of depreciation sharp recent the especially ,rates exchange international the in fluctuations aggravating the and momentum face will Company the that anticipated is It .export for risk of increase significant to leads which ,rate exchange euro the and quality of objectives development the with that observe we time same the at ,However .operation its in pressure stronger in improvements the ,policies urbanization new the of promotion further the ,economy domestic the in enhancement efficiency recovery continued the ,market international the in ,and ,systems fund reserve and policies development economic regional the Twelfth the of implementation the which year the 2015, in ,countries developed other and States United the in economy the of to stimulated be will appliances household of demand export and domestic the both ,completion to come will Plan year-Five strategies operating the uphold rigidly will Company The .Company the of development the on influences favorable along bring efficiency system enhancing ,quality service improving ,capabilities marketing enhancing ,advantages product building "of opportunities the on ride and resources integrate actively ,ahead challenges any tackle to" efficiency and scale ensuring and orientation-customer of philosophy the actualize thoroughly to;innovations product and technology and upgrades sector of product establish and competitiveness product improve to order in customers the to products satisfactory of provision and NPS reinforce ,goal ultimate the as" satisfaction customer "take to; capability sales the increase to; continually advantages capital reinforce to; measures enhancement efficiency of development continue to; quality service the improve and management market and efficiency ,scale the in increase steady achieve to order in capital on control risk strict implement and management .Company the of share

financial ,shareholders all from support strong and care the received has Company the of development business the 2014, In your receive to hope and them of one every to gratitude my express to like would I .government the and partners ,institutions goals of our realization the ,planning depth-in and careful the with ,that believe We .year forthcoming the in support continued as work of style pragmatic and spirit corporate new brand a ,staff our of commitment and efforts concerted the ,successively also I .advanced be will Company the of development the ,ahead challenges the on take to enterprise the of forces driving .all you with Kelon Hisense of future better a sharing to forward look earnestly

Guo Ye Tang Chairman

2015 March 26 ,PRC The

OVERVIEW INDUSTRY .I

moderate a to trend speed high a from shifted gradually economy PRC the of growth the ,Period Reporting the During due ,time same the At .development economic the on pressure downward greater was there and momentum high to stimulation appliances household the by demand overdraft and market property sluggish continued as such factors to the to According .weak was growth its and diminished market PRC the in demand ,periods previous the during policies industry refrigerator domestic the of volume retail the ,)CMM (Limited Company Monitor Market China of statistics industry refrigerator the of volume retail the whereas ,February since month every for decrease year-to-year recorded promisingly started market conditioner-air the ,hand other the On 2014. in 9.33% of decrease year-to-year a recorded a recorded and year the of half second the during growth the in slowdown significant with afterwards declined but conditioner-air the of volume retail the in decrease year-to-year 1.35% a was There .August since growth negative ,market export the to As .end an to came industry appliances household the of era growth high the and 2014 in market overseas the in slack remained demand ,demand of down slowing and downturn economic global as such factors to due freezer and refrigerator the of volume export the ,Department Customs the of statistics the to According .market .year-to-year 2.7% by decreased products conditioner-air the of that and 8.9%, of growth year-to-year a marked products the ,intelligence household of popularization the and technologies internet mobile of development swift the on Riding .development end-high and artization ,intelligentization towards heading further is industry appliance household

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 "efficiency and scale ensuring and efficiency system enhancing ,model marketing reforming ,quality service improving 26534 RMB of revenue operating recorded Company The .businesses principal the in growth stable maintained and ,million 24371 RMB of revenue operating principal and 8.93%, of increase year-to-year a representing ,million business machine washing and refrigerator the from revenue the which of 9.84%, of increase year-to-year a representing from revenue; 1.01% of decrease year-to-year a representing ,revenue operating principal the of 48.68% for accounted growth year-to-year a representing ,revenue operating principal the of 46.54% for accounted business conditioner-air the a representing ,million 17179RMB of revenue operating principal a recorded business sales domestic the; 22.84% of 7192RMB of revenue operating principal a recorded business sales export the whereas 9.95%, of growth year-to-year decrease as such factors eroding-profit the of result a as ,However 9.58%. of growth year-to-year a representing ,million due values fair in changes from losses ,expenses sales in increase ,business refrigerator the of margin profit gross the in Company the ,revenue operating-non in decrease year-to-year with coupled and ,rates exchange the in fluctuation to equity to attributable profits net recorded Company the ,Period Reporting the During .profitability reduced recorded year-to-year a representing 0.50,RMB of share per earnings and million 672RMB of company listed the of holders 44.44%. of decrease

The .points percentage 3.63 by decreased Company the of ratio asset-to-debt the ,Period Reporting the During .improved further position financial s'Company

orientation Technology

and research the uphold to continued Company the of business refrigerator the ,Period Reporting the During on focused ,experience user and products its of intelligentization of level the enhancing further of approach development ,control remote and healthy ,moisturizing ,preservation food ,saving-energy as such areas in technologies the upgrading March in held Expo Appliances Household China the At .upgrades function and innovations technology in persisted and two the combined that technology preservation freshness ion-negative nano Nanofresh the launched Company the 2014, integration the promoted swiftly and disinfection and moisturization namely ,products refrigerator for functions major China 2014 the At .refrigerators door-French Cross Ronshen the launching by products actual in technology the of of Technology Moisturizing for Brand Leading 2013-14 "the won refrigerators Ronshen ,Summit Industry Refrigerator ;technologies cooling and frostless ,moisturizing the in innovations continual their for award" Industry Refrigerator the for award" Industry Refrigerator the of Refrigerators Healthy for Brand Leading 2013-14 "the won refrigerators Hisense Hisense ,Germany ,Berlin in held) IFA (Funkausstellung International the At .refrigerators healthy in innovations their for Award" Innovation Technology 2014 "the won successfully refrigerators door-French Cross) 倍多分 (Beiduofen .needs user meet to innovations and technologies differentiation their

strategies the consolidate to continued Company the of business conditioner-air the ,Period Reporting the During upgrades function ,innovations technical as such measures through ,differentiation and intelligentization product of World the At .competitiveness product enhanced and advantages product established ,designs outlook innovative and internet developed-self their for ,conditioners-air intelligent Hisense 2014, February in held Forum Innovation "Innovation World Kangaroo Golden "the won ,globe the around model first the were which conditioners-air intelligent ,"Technology Intelligent of Star ","Technology Intelligent for Brand Leading "including awards major won conditionersair Hisense ,Summit Industry conditioner-Air China 2014 the At .honor global major and unique a was which ,Award and products and technologies outstanding their for 2014 in industry conditioner-air the of" Product Inverter Pioneering" of" Technology saving-Energy for Brand Leading "the awarded were conditioners-air Kelon; responses market positive intelligent leading-industry the launched conditioners-air Hisense 2014, August In 2014. in industry conditioner-air the other and purifiers air ,conditioners-air between coordination realizes that" Home Breathing ",solution conditioning-air comprehensive a provides which technologies networking physical and platform cloud through appliances household first the of development the completed time same the at conditioners-air Hisense .users the for solution air household .products conditioner-air end-high of portfolio the enriching ,conditioner-air cabinet artistic" Turn Flip "degree360- Intelligent Best the with Product "and" Innovations Intelligent "of awards intelligence major two the won conditionersair Hisense 2014, October in held Industry conditioner-Air Chinese the of Conference Annual) Seventh (2014 the At .products intelligent the in experience user innovative and technologies advance their for" Experience

business machine washing and Refrigerator

to committed were business machine washing and refrigerator s'Company the ,Period Reporting the During (倍多分(Beiduofen Hisense .enhanced was structure product the and products end-high of strategy the implementing statistics the to According .products end-high the of portfolio the enhanced further which ,launched were products endhigh new other and refrigerators door-French Cross)食尚派(Shishangpai Ronshen ,refrigerators door-French Cross in that than higher points percentage 2.75 was 2014 in refrigerators style-French the of share market retail the ,CMM of scale the 2014, in market retail refrigerator PRC the in growth negative of trend overall an by affected ,However 2013. 1.25 by narrowed margin profit gross the and declined business machine washing and refrigerator s'Company the of promotion product in spending its increased Company the ,time same the At .basis year-to-year a on points percentage profitability in drop and rate sales of cost the in increase further a to leading ,competition market the to response in overseas the explored proactively has Company the ,exports to As .business machine washing and refrigerator the of the of scale the in shortfall the compensate to throttle full on markets overseas the to sales promoted and markets and refrigerator the of volume export the ,Department Customs the of statistics the to According .business domestic average the outperforming 2014, in 16.6% of growth year-to-year a marked Company the of products machine washing .industry the of 8.9% of growth

business conditioner-Air

the towards development product in persisted business conditioner-air s'Company the ,Period Reporting the During the on focus a with intelligentization and personalization ,healthy ,technology inverting ,saving-energy of direction with products artistic of series" Wind Jiangnan "the launched have conditioners-air Kelon .sophistication of strategy series" L8A Pie Apple "the launched have conditioners-air Hisense whereas ,functions outstanding and outlook unique Apple "the of craftsmanship and outlook sophisticated the to upgrade an realizing ,conditioners-air intelligent of which" quality service enhancing "of strategy operating the upheld also have conditioners-air Hisense .series" Pie and services sale-after quality High .services their of value) score promoter net (NPS the in increase steady a to led in business conditioner-air s'Company the of scale the promote to helped competitiveness product in improvements "Kelon "and" Hisense "brands two the under conditioners-air ,CMM of statistics the to According .pace steady a overall the outperforming 2014, in volume retail in respectively 0.78% and 11.8% of growth year-to-year recorded point percentage 0.66 a recorded Company the of products conditioner-air of volume retail The .market conditionerair the of volume retail the in 1.35% of decrease year-to-year a despite industry conditioner-air the of increase of level overseas the explored actively has Company the ,exports to As .market retail conditioner-air the of share the in increase recorded Company the ,Department Customs the of statistics the to According .exports of scale the expand to markets margin profit gross the ,time same the At 2.7%. by industry conditioner-air the of volume export the in decrease year-toyear a despite 2014 in Company the of products conditioner-air of volume export the in 2.8% of growth year-to-year a conditioner-air the of profitability the and points percentage 1.67 of increase an recorded products conditioner-air of implementation as well as ,structure product conditioner-air the in improvements the with increase to continued industry .measures reducing-cost and enhancing-efficiency of

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√

				or Increase as decrease compared last to
Item	2014	2013 Before adjustment After adjustment		(%) year After adjustment	2012 Before adjustment	After adjustment
Operating (RMB (revenue	26,534,420,935.55	24,360,021,308.47	24,360,021,308.47	8.93	18,958,915,310.09	18,958,915,310.09
profits Net attributable shareholders to listed of (RMB (company	672,478,632.35	1,239,005,051.61	1,215,669,602.07	(44.68)	717,764,680.40	717,764,680.40
after profits Net non deducting profit recurring- loss and to attributable of shareholders listed (RMB (company	582,931,287.47	1,077,904,382.91	1,077,904,382.91	(45.92)	597,180,784.22	597,180,784.22
flow cash Net operating from (RMB (activities	965,990,457.87	218,798,349.53	218,798,349.53	341.50	1,098,192,778.13	1,098,192,778.13
earnings Basic share per (share/RMB (	0.50	0.92	0.90	(44.44)	0.53	0.53
earnings Diluted share per (share/RMB (	0.50	0.92	0.90	(44.44)	0.53	0.53
Weighted average return of rate assets net on (%)	21.65	58.16	56.78	(35.13)	61.95	61.95
				or Increase as decrease compared end to
Items	31 2014 December	31 Before adjustment	2013 December After adjustment	) % (year last of After adjustment	31 Before adjustment	2012 December After adjustment
Total (RMB (assets	13,266,793,963.74	11,964,709,290.58	12,208,030,858.33	8.67	9,200,334,640.73	9,295,011,411.79
assets Net attributable shareholders to listed of (RMB (company	3,458,363,028.38	2,748,731,080.83	2,748,731,080.83	25.82	1,512,042,166.49	1,512,042,166.49

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

				Unit RMB :
Item	Amount of 2014	Amount of 2013	Amount of 2012	Description
Profits losses or from disposal non of current (assets including part the written for off provision for impairment on (assets	) 2,343,557.57 (	296,087.55	97,537,681.25
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 (	82,298,890.90	82,700,643.38	23,057,674.18
Corporate restructuring (costs staff .g.e relocation costs costs and during the of course integration (	) 36,817,863.11	) ( 52,492,777.86 (
Reversal of provision for impairment on account receivables to subject separate impairment testing	12,585,064.60	89,950,024.68
non Other operating- income and expenses other the than aforementioned items	39,015,647.68	14,306,916.33	3,348,427.38
Less Effect : income of tax	15,218,459.01	4,249,768.03	2,187,048.64
of Effect minority interests tax after ( ) (	10,027,621.39	) ( 7,254,093.11 (	1,172,837.99
Total	89,547,344.88	137,765,219.16	120,583,896.18

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	2014	2013	(%)
Home appliances	Sales volume	1,699	1,566	8.49
manufacturing industry	Production volume	1,731	1,605	7.85
	Inventory volume	184	152	21.05

Analysis and Discussion Management

Costs 2.

						or Increase
						as decrease
		2014		2013		to compared
			to Weight		to Weight	corresponding
			operating costs		operating costs	period year last
Industry Category Item		Amount	) %(	Amount	(%)	(%)
Home appliances	materials Raw	1,697,168.44	90.45	1,542,152.64	90.23	0.22
manufacturing industry	wages Staff	53,990.60	2.88	51,646.53	3.02	(0.14)
	Depreciation	36,722.00	1.96	28,402.07	1.66	0.3

Expenses 3.

thousand ten RMB :Unit

thousand ten RMB :Unit

			Increase or decrease as compared to corresponding period year last
Expense Item	2014	2013	%(	Reason) the for changes
Sales expense	438,869.02	367,812.22	19.32	Mainly due increase to products in promotion expenses freight , charges -air and conditioner installation fees the during Reporting .Period
Management expense	85,693.18	81,445.26	No 5.22	significant change
Finance expense	( 396.62 )	( ) 2,747.44	N	Mainly A/ to due decrease a the in proceeds from use the capital of the during Reporting Period
Income expense tax	5,972.51	5,361.89	No 11.39	significant change

Flow Cash 4.

			Unit ten RMB : thousand
			Increase or decrease as compared to corresponding period year last
Item	2014	2013	(%)
total-Sub cash of inflows from operating activities	1,537,699.84	1,456,341.79	5.59
total-Sub cash of outflows from operating activities	1,441,100.80	1,434,461.96	0.46
Net flows cash from operating activities	96,599.05	21,879.83	341.50
total-Sub cash of inflows from investing activities	10,764.75	9,315.94	15.55
total-Sub cash of outflows from investing activities	76,618.68	56,571.70	35.44
Net flows cash from investing activities	( 65,853.93 )	( ) 47,255.76	A/N
total-Sub cash of inflows from financing activities	138,115.72	47,399.58	191.39
total-Sub cash of outflows from financing activities	129,146.68	26,043.63	395.89
Net flows cash from financing activities	8,969.04	21,355.95	(58.00)
Net increase cash in cash and equivalents	39,705.16	( ) 4,067.42	A/N

data relevant the in changes year-to-year 30% over for Reasons

applicable Not □ Applicable√

• in increase to due mainly was activities operating from flows cash net the in increase year-to-Year) 1( .Period Reporting the during Company the of receivable notes due from received amounts
• in increase to due mainly was activities investing from flows cash net the in decrease year-to-Year) 2( .Period Reporting the during assets fixed in investments
• in decrease to due mainly was activities financing from flows cash net the in decrease year-to-Year) 3( .Period Reporting the during receivable accounts factoring net

expenses development and Research 5.

features' products enhancing further on focus to continued Company the ,Period Reporting the During development core its as intelligence ,moisturizing ,preservation freshness ,saving-energy as such its of innovations and development ,research in investments up stepping in persisted and ,direction Preservation Freshness Ion function-Multi "as such projects development refrigerator Through .products conditioner-air as well as ,"Technology Foaming saving-Energy ,carbon-Low for D&R "and" Technology New of Development ","Products Intelligent Home Breathing for D&R "as such projects development Enhancement Efficiency Synergized and Analyses CFD and CAE on based Platform Outdoor APF on based Passage Air Efficiency High of Application and D&R "and" Reduction Consumption and intelligence of levels and features the enhance to strived Company the ,"Technology Vortex Controllable the of competitiveness core the and products the of competitiveness market the enhancing ,products its of .upgrade industrial s'Company the for support technological solid provided which ,Company

Segments Business Principal of Description) VI(

						Unit RMB :
Item	Revenue from operating businesses	Costs operating of businesses	profit Gross (%) margin	or Increase in decrease from revenue operating as businesses to compared corresponding period year last (%)	or Increase decrease costs in operating of as businesses to compared corresponding period year last (%)	or Increase decrease gross in margin profit as to compared corresponding period year last (%)
industry By Home appliances manufacturing
industry	24,370,988,051.17	18,762,900,237.84	23.01	9.84	9.78	0.05
product By
Refrigerators	9,777,648,421.45	7,555,205,500.69	22.73	(3.25)	(2.13)	(0.89)
Air conditioners-	11,342,514,901.50	8,620,900,642.94	23.99	22.84	20.20	1.67
Others	3,250,824,728.22	2,586,794,094.21	20.43	14.18	17.55	(2.28)
region By
Domestic	17,178,988,978.86	12,359,306,312.99	28.06	9.95	9.92	0.03
Overseas	7,191,999,072.31	6,403,593,924.85	10.96	9.58	9.51	0.06

Reporting the during business operating principal s'Company the for criteria statistical the to adjustments to Due the to adjustments making after year recent the in business operating principal s'Company the on data the ,Period Period Reporting the of end the at criteria statistical

Applicable Not □ Applicable√

						Unit RMB :
Item	Revenue from operating businesses	Costs operating of businesses	profit Gross (%) margin	or Increase in decrease from revenue operating as businesses to compared corresponding period year last (%)	or Increase decrease costs in operating of as businesses to compared corresponding period year last (%)	or Increase decrease gross in margin profit as to compared corresponding period year last (%)
industry By Home appliances manufacturing industry	24,370,988,051.17	18,762,900,237.84	23.01	9.84	9.78	0.05
product By Refrigerators and washing machines Air conditioners-	11,864,028,175.03 11,342,514,901.50	9,268,105,140.56 8,620,900,642.94	21.88 23.99	(1.01) 22.84	0.60 20.20	(1.25) 1.67
Others	1,164,444,974.64	873,894,454.34	24.95	20.26	23.57	(2.01)
region By Domestic Overseas	17,178,988,978.86 7,191,999,072.31	12,359,306,312.99 6,403,593,924.85	28.06 10.96	9.95 9.58	9.92 9.51	0.03 0.06

from reclassified been has machines washing and freezers of data 2014, year in categories product by data the For :Note .purposes statistical for" machines washing and refrigerators "to" products other"

Analysis and Discussion Management

Position Liabilities and Assets of Analysis) V(

items asset in changes Significant 1.

						Unit RMB :
	31	2014 December Percentage	31	2013 December Percentage	Increase decrease or
Item	Amount	assets total to ) %(	Amount	assets total to (%)	weight in ( %	Explanation) significant of changes
at Cash hand on and bank	870,663,755.12	6.56	473,787,177.54	3.88		Mainly 2.68 increase to due entrusted in collection notes for and receivable increase factoring in accounts receivable the during .Period Reporting
assets Financial at measured where value fair in changes are value fair for accounted or gain as period the of loss	162,460.00	0	67,115,019.35	0.55	(	Mainly) 0.55 in changes to due rates exchange undue for exchange forward as business the of end the at Period Reporting
receivable Notes	991,796,937.82	7.48	2,160,801,733.50	17.70	(	Mainly) 10.22 increase to due amounts in received due from receivable notes the during .Period Reporting
Accounts receivable	1,984,291,386.93	14.96	1,644,771,822.27	13.47	1.49	significant No change
Prepayments	498,209,306.68	3.76	352,903,571.02	2.89		Mainly 0.87 increase to due construction in prepayments subsidiaries of the during .Period Reporting
Inventories	2,915,921,775.81	21.98	2,496,359,854.46	20.45	1.53	significant No change
Investment properties	31,459,416.41	0.24	33,946,307.75	0.28	( 0.04	significant No) change
equity term-Long investments	1,216,043,770.20	9.17	993,500,673.77	8.14	1.03	significant No change
assets Fixed	2,932,039,091.41	22.1	2,368,500,692.73	19.40	2.7	significant No change
Deferred assets tax	106,813,348.23	0.81	36,616,861.02	0.30		Mainly 0.51 in increase to due subsidiaries the

assets tax profit deferred satisfy which continued subsidiaries and provision the of end the at as profits make to .Period Reporting

Analysis and Discussion Management

items liability in changes Significant 2.

						Unit RMB :
		2014		2013	Increase
		Percentage assets total to		Percentage assets total to	decrease or weight in
Item	Amount	) %(	Amount	(%)	( %	Explanation) significant of changes
Short borrowings term-	253,985,142.45	1.91	191,681,513.02	1.57		Mainly 0.34 increase to due factoring in accounts receivable of end the at as the .Period Reporting
Financial liabilities at measured where value fair in changes are value fair for accounted or gain as period the of loss	7,391,136.66	0.06	4,645.00	0.00		Mainly 0.06 in changes to due rates exchange undue for exchange forward business as the of end the at .Period Reporting
payable Taxes	174,792,592.21	1.32	86,555,036.75	0.71		Mainly 0.61 increase to due tax income in payable the during .Period Reporting

Value Fair at Measured Liabilities and Assets) VI(

RMB :Unit

Items	the at Balance of beginning period the	loss or Gain change from value fair in the during period	Accumulated in changes value fair in accounted equity	for Provision impairment the during period	Amount purchased the during period	sold Amount the during period	at Balance the of end the period
assets Financial 1. assets Financial at measured where value fair changes value fair in accounted are gain as for the of loss or excluding (period derivative (assets financial Derivative 2. assets financial 3. assets Financial sale for available	67,115,019.35	(66,952,559.35)	(66,952,559.35)				162,460.00
of Subtotal assets financial Investment Properties Productive assets biological Others Total Financial liabilities	67,115,019.35 (4,645.00)	(66,952,559.35) (7,386,491.66)	(66,952,559.35) (7,386,491.66)				162,460.00 (7,391,136.66)

Analysis Competitiveness Core) VII(

advantages Technological 1.

on focuses and" orientation technology "of philosophy operating its to adheres Company The core its build to" friendliness environmental and green "and" technology inverter by saving-energy" 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 driven-self its enhance to committed always is Company The .personnel technical of thousands with ,products its of intelligentization of level and performance the enhance to strives and capacity innovation strong provide and competitiveness market' products its and competitiveness core its improve to order in .advancement industrial s'Company the for support technical

advantages Brand 2.

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

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

Name company of	type Company	Industry	product Major service or	Registered capital	assets Total 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	company A which in the has Company interest equity	appliances Home industry	Production sale and air commercial of conditioners	million \$46US	300,376.06	189,825.49	412,998.67	84,088.28	71,087.05

Period Reporting the during subsidiaries of disposal and Acquisition

applicable Not □ Applicable√

of Name company	Purpose of 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 and performance
(Hisense Guangdong ( -Air Conditioner Company Limited	Establishment new of -air conditioner production base	Newly established	For facilitating the enhancement the of Company s' production capabilities air for conditioner products and production .efficiency
(Hisense Guangdong ( Mould Plastic Company Limited 海信( (廣東( 模塑有限公司 (	Establishment new of subsidiary the for business of auxiliary products such mould as and plastic	Newly established	For facilitating the enhancement the of Company s' production capabilities for auxiliary products

OUTLOOK .IV

momentum growth economic weak ,economy PRC the on pressure downward persistent the 2015, into ahead Looking since ,Further .market domestic the in demand insufficient to lead will market property the of downturn continual and war Price .levels high at remains industry conditioner-air the of inventory overall the 2015, year of commencement the same the At .operation business for situation tough rather a face will industry conditioner-air the and verge the on is an with ,crisis financial international the after adjustment depth-in of phase the in still is economy global the ,time the especially ,rates exchange international the in fluctuations aggravating the and momentum recovery weak expected the that anticipated is It .significantly increases export for risk The .rate exchange euro the of depreciation sharp recent development the with that observe we time same the at ,However .operation its in pressure stronger face will Company new the of promotion further the ,economy domestic the in enhancement efficiency and quality of objectives ,and ,systems fund reserve and policies development economic regional the in improvements the ,policies urbanization ,countries developed other and States United the in economy the of recovery continued the ,market international the in domestic the both ,completion to come will Plan year-Five Twelfth the of implementation the which year the 2015, in development the on influences favorable along bring to stimulated be will appliances household of demand export and .Company the of

marketing enhancing ,advantages product building "of strategies operating the uphold rigidly will Company the 2015, In tackle to" efficiency and scale ensuring and efficiency system enhancing ,quality service improving ,capabilities technology and upgrades sector of opportunities the on ride and resources integrate actively ,ahead challenges any through share market and performance ,scale its in increase steady for strive to order in innovations product and :following the of implementation

• the to products satisfactory of provision and orientation-customer of philosophy the actualize thoroughly to 1. Specifically .continually advantages product establish and competitiveness product improve to order in customers core' products the of position leading the maintain ,technologies key innovate; advantages competitive roundall establish ,products corresponding to channel sales the enhance and supplement ,portfolio product enrich ,sophistication product enhance to continue; innovations technological continual through competitiveness ,development product end-high of strategies the to adhere to; quality product in improvements strengthen ,products end-high for development and research of input the increase ,sophistication and differentiation product product towards transition s'Company the realizing of aim the with ,products end-high of portfolio the enrich explore thoroughly to ,time same the at; products end-high of development and artization ,intelligentization advantage cost product ensure to and margin profit gross' products enhance to ,cost production reduce to rooms strengthen and innovate to suppliers with collaboration ,innovation technological as such measures through .management purchase
• responding through capabilities promotion and planning product the improve To .capability sales the increase to 2. swift the by brought opportunities the capitalize to; internet mobile the by brought models sales in changes to the of reputation and popularity online the enhancing for ecommerce as such channel emerging the of growth the for channels of construction the for driving continue to; capability operating the fortify to order in brands for strive to productivity shop-single the increase and quality network enhance ,markets grade fourth and third the strengthen and expense sales increase to; channels the of quality and quantity the in growth synchronized and efficiency low has which or ineffective is which spending reduce to management and analysis budget output market the enlarge and products end-high to -mid of promotion reinforce to; expenses sale of rate the lower to the of perspective the In .share market overall the of enhancement the for drive to order in products key of share markets major in breakthrough through ,business brand the of development the accelerate to ,market international .brand the of share market and market overseas the of scale business the enhance to
• .quality service the improve and management NPS reinforce ,goal ultimate the as" satisfaction customer "take to 3. the of scale the enhance to network sales the and provider service the between consonance the enhance To image core the build to; services of standard the improve and network service the enhance to; provider service visit site-on of timeliness the improve to; brand the of reputation market the promote and provider service the of . supervision process-whole through

Analysis and Discussion Management

• through efficiency manufacture the up speed To .measures enhancement efficiency of development continue to 4. ;speed production accelerating and techniques and automation of level the enhancing ,enhancement workflow increase to ,structure organizational and workflow the enhancing through functions of integration implement to through capabilities staff the enhance and ,structure talent the enhance continually ,efficiency working sales for organization up set to; efficiency management the improve to order in ,measures informatization capabilities sales the enhance to model sales the reforming as such measures through ,improvement efficiency .efficiency sales enhance to order in ,scale and
• reduce ,management receivables Reinforce .control risk strict implement and management capital reinforce to 5. accelerate and management expenses strengthen ,capital over control strict implement ,occupancy inventory .risks rate exchange avert; management rate exchange reinforce; flow capital

whereas ,corporation a of development stable and healthy term-long the to assurance basic the is governance corporate Sound .company the of development healthy the maintain to measure necessary a is level governance the of enhancement continued options share of exercise the of phase first the of implementation the of completion following ,Period Reporting the During the of Association of Articles the amended further has Company the ,scheme incentive option share first s'Company the under meetings ,meetings general' shareholders The .Company the of structure capital the of alteration the to related mainly Company ,functions their performed committee supervisory the and committees specialized various its and directors of board the of the and regulations ,laws the with accordance in balance and check effective maintained and other each with coordinated .Company the of governance corporate of level the enhanced continuously which ,systems relevant

: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

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 2014, In 56.18% and 51.17% represented EGM the and AGM the attending shareholders the by held shareholding The .Company general the attending Directors of records attendance The .respectively Company the of shares issued then the all of :table following the in out set are meetings

	The attendance the of general meetings the by Directors
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	2	2	0	100%
Ren .Mr Ren Li (1 Note (	1	1	0	100%
Yu .Ms Min Shu	2	0	0	—
Mr Lan Lin .	2	0	0	—
Xiao .Mr Lin Jian (2 Note (	2	1	0	50%
Gan .Mr He Yong (3 Note (	1	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%
Mr Huang . Jian Xiao (4 Note (	1	1	0	100%
Mr Ye Tian . (5 Note (	1	1	0	100%

:Notes

• ;2014 March 27 from effect with Director a be to ceased Ren Li Ren .Mr 1.
• ;2015 March 17 from effect with Director a be to ceased Lin Jian Xiao .Mr 2.
• ;2014 March 27 from effect with Director a be to ceased He Yong Gan .Mr 3.
• ;2014 June 26 on Director a as appointed was Jian Xiao Huang .Mr 4.
• and; 2014 June 26 on Director a as appointed was Ye Tian .Mr 5.
• the of commencement the before writing in leave for applied have person in meetings general the attend to unable Directors All 6. .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 Hogn ,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

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

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

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 designated

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 for explanation give or respond shall meeting the of chairman the whereas .,etc shareholdings her/his and shareholder .staff specific appointing by or person in recommendation or enquiry such

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 ,Directors nine comprised Board the ,Period Reporting the During .years 3 of office of term a with 2012 June 26 on held .Mr ,Lan Lin .Mr ,Min Shu Yu .Ms ,Lin Jian Xiao .Mr ,)Chairman (Guo Ye Tang .Mr Directors executive the being Yu Xin Wang .Mr ,Yi Xiang Xu .Mr Directors executive-non independent the and ,Ye Tian .Mr and Jian Xiao Huang March 17 on effect took which 2015 March 17 on resignation his tendered Lin Jian Xiao .Mr As .Guo Ai Wang .Mr and .hereof date the to 2015 March 17 from Directors 8 comprises Board the 2015,

Policy Diversity Board

diverse a having of benefits the embraces and recognizes Company The .policy diversity board a adopted has Board The ,development balanced and sustainable its achieving to view a With .performance its of quality the enhance to board 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 diversity 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 34 to 33 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 2014, 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

,results operating s'Company the discuss to meetings 13 held Company the of Board the of session eighth the 2014, In the attended Directors The .performance financial and operating as well as proposals investment ,strategies overall :table following the in out set are records attendance their and ,proxies their by or person in meetings

	The attendance the of meetings of eighth the session of Board the
	Number of meetings which should be attended for	Number of attendance	Number of attendance	Attendance for rate
Name	year the	person in	proxy by	year the
Tang .Mr Guo Ye	13	13	0	100%
Ren .Mr Ren Li (1 Note (	4	4	0	100%
Yu .Ms Min Shu	13	13	0	100%
Mr Lan Lin .	13	13	0	100%
Xiao .Mr Lin Jian (2 Note (	13	13	0	100%
Gan .Mr He Yong (3 Note (	4	4	0	100%
Xu .Mr Yi Xiang	13	13	0	100%
Wang .Mr Yu Xin	13	13	0	100%
Wang .Mr Guo Ai	13	13	0	100%
Mr Huang . Jian Xiao (4 Note (	4	4	0	100%
Mr Ye Tian . (5 Note (	4	4	0	100%

:Notes

• ;2014 March 27 from effect with Director a be to ceased Ren Li Ren .Mr 1.
• ;2015 March 17 from effect with Director a be to ceased Lin Jian Xiao .Mr 2.
• ;2014 March 27 from effect with Director a be to ceased He Yong Gan .Mr 3.
• and; 2014 June 26 on Director a as appointed was Jian Xiao Huang .Mr 4.
• 1. June 26 on Director a as appointed was Ye Tian .Mr 5.

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 of Association of Articles the ,China of Republic s'People the of Law Company the as such ,regulations applicable and duties their discharge to Directors enable to available are resources Sufficient .Rules Listing the and Company the Board each of Minutes .advice professional independent seeking in fees consulting for budget including ,responsibilities person the and Directors attending the by signed be will Board the of committees the of meeting each and meeting inspection' Directors for available are minutes the which during ,years 10 of term a for kept be and ,minutes the taking .request their upon time to time from

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 .system control internal 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 is 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 54 page to refer please ,Company the of

Reporting the during meeting two 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 meetings the of Remuneration and Appraisal Committee under 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
Yu .Ms Min Shu	2	2	0	100%
Mr Lan Lin .	2	2	0	100%
Wang .Mr Yu Xin	2	2	0	100%
Wang .Mr Guo Ai	2	2	0	100%
Xu .Mr Yi Xiang	2	2	0	100%

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

• annual 2013 the in management senior and supervisors ,Directors the of remuneration annual the of disclosure the 1. ;report
• ;Company the of management senior the of remuneration annual basic the of respect in resolution the 2.
• of year the for Company the of management senior of remuneration annual risk the of respect in resolution the 3. and; 2013
• exercise first the during options share the of exercise the to relation in matters of verification the on opinion the 4. .Company the of scheme incentive option share first the of period

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 2014 December 31 ended year the for Company the of management senior the and supervisors the .report annual this of 54 to 53

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 .(2015 March 16 till (Lin Jian Xiao .Mr and) 2014 March 26 till (Ren Li Ren .Mr ,Guo Ye Tang .Mr ,namely ,Directors .committee the of chairman the as acts Yi Xiang Xu .Mr

: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(

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

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 under Board the
Name	Number of meeting which should be attended for year the	Number of attendance person in	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%
Xiao .Mr Lin Jian (2 Note (	0	0	0	—

:Notes

• and; 2014 March 27 from effect with Committee Nomination the of member a be to ceased Ren Li Ren .Mr 1.
• 1. March 17 from Committee Nomination the of member a be to ceased Lin Jian Xiao .Mr 2.

:approved and considered Committee Nomination the ,Period Reporting the During

• of session eighth the of Director the of candidate as Ye Tian .Mr of nomination the of respect in resolution the) 1( ;Company the of Board the
• eighth the of Director the of candidate as Jian Xiao Huang .Mr of nomination the of respect in resolution the) 2( ;Company the of Board the of session
• ;Company the of president the of candidate as Lin Jian Xiao .Mr of nomination the of respect in resolution the) 3(
• the of president-vice the of candidate as Jian Xiao Huang .Mr of nomination the of respect in resolution the) 4( .Company

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

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 Ren .Mr ,)2015 March 16 till (Lin Jian Xiao .Mr and Lan Lin .Mr ,Min Shu Yu .Ms ,Guo Ye Tang .Mr comprised Board .committee the of chairman the is Guo Ye Tang .Mr .)2014 June 26 since (Ye Tian .Mr and) 2014 March 26 till (Ren Li

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

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

Committee Audit

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

: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
• 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
• reports interim ,accounts and reports annual and statements financial s'Company the of integrity the monitor to) D( In .reports these in presented judgments reporting financial significant review to and ,reports quarterly and :on particularly focus should committee the ,Board the to submission before reports these reviewing
• ;practices and policies accounting in changes any 1.
• ;judgments major involving areas 2.
• ;audit the from resulting adjustments significant 3.
• ;opinions qualified 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(
• to duty its performed has management that ensure to management with system control internal the discuss to) G( staff ,resources of adequacy the include should discussion This .system control internal effective an establish financial and accounting s'Company the of budget and programmes training ,experiences and qualifications ;function reporting
• own its on or Board the by delegated as matters control internal on investigation of findings major research 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(
• of employees which arrangements the :Company the by set arrangements following the review and audit to) N( ,reporting financial in improprieties possible about concerns raise to ,confidence in ,use can Company the proper that ensure shall Committee Audit the of members committee the and matters other or control internal 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

Board the under Committee Audit the of meetings the of attendance The

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

:tasks major following the accomplished Committee Audit the 2014, In

• ;Company the of reports financial quarterly and interim ,annual the reviewed having 1.
• the and 2013 of year the for control internal of assessment-self on report the approved and considered having 2. ;2013 of year the for body auditing the by conducted work audit the for report final

• as Accountants Public Certified Ruihua of reappointment the on resolution the approved and considered having 3. ;2014 of year the for Company the of auditor the

• 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.
• of management senior the reminded and Company the of matters significant on recommendations made having 6. .risks relevant the of Company the

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

shareholder two of composed was Committee Supervisory the of session eighth the ,Period Reporting the During representative employee one and Ling Yu Gao .Ms and Shun Zhen Liu .Mr namely ,supervisors representative 15 On .Committee Supervisory the of chairman the as acting Shun Zhen Liu .Mr with ,Jun Jian Zhang .Mr ,supervisor tendered Jun Jian Zhang .Mr that Given .Jun Jian Zhang .Mr from resignation the received Company the 2015, January Committee Supervisory the of operation normal the ensure to ,supervisor representative employee the as resignation his employee as elected was Peng Shu .Mr and held was representatives employee the of meeting a ,Company the of the until 2015 January 15 from effect with Committee Supervisory the of session eighth the of supervisor representative .(2015 June 25 .e.i (Committee Supervisory the of session eighth the of expiration

.report annual this of 35 to 34 pages on out set are biographies' supervisors mentioned-above the of Details

Code CG the with Compliance .II

the with complied 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

Directors the of Training

Company the of Board the to secretary the ,Directors the of management corporate of level the enhance to order In delivers and ,institutions regulatory securities the by out set requirements regulatory latest the follows continuously timely a in Company the of management senior and supervisors ,Directors the to information and requirements such supervisors ,Directors relevant the for programs training arranged also has Company the ,time same the At .manner China and Exchange Stock Shenzhen the by held sessions training specific includes which ,management senior and professional continuous in participating in Directors the assist to ,Bureau Guangdong Commission Regulatory Securities .development

current 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

Name	of Type training
	(Note(
Tang .Mr Guo Ye	b ,a
Yu .Ms Min Shu	b
Mr Lan Lin .	b ,a
Xiao .Mr Lin Jian	b ,a
Mr Huang . Jian Xiao	b
Mr Ye Tian .	b
Wang .Mr Yu Xin	b ,a
Wang .Mr Guo Ai	b ,a
Xu .Mr Yi Xiang	b ,a

:Notes

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

.etc responsibilities and duties' directors or business s'Company the to relating updates and journals ,newspapers reading :b

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	Former President	President
NAME	Tang .Mr Guo Ye	Ren .Mr Ren Li	Xiao .Mr Lin Jian Mr	Ye Tian .
TERM OF OFFICE	June 26 to 2006 25 2015 June	June 27 to 2011 March 26 2014	March 27 to 2014 March 16 2015	March 17 to 2015 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 financial ,outsourcing business ,business guarantee ,project engineering ,development and research ,business sales has and ,system information and transfer information internal ,management contract ,budget comprehensive ,reporting drawn were Conclusions 2014. in control internal s'Company the of effectiveness the on assessment-self out carried internal established has Company the ,Period Reporting the during :control internal of effectiveness the of respect in effectively been has control internal the and ,assessment of scope the in included matters and businesses all for control .shortfalls significant without control internal s'Company the of objectives the achieve to executed

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 the ,addition In .system control internal the in defect significant any of aware not was and situation actual the on based the of effectiveness the on audit independent perform to Accountants Public Certified Ruihua engaged has Company 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 2014, 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

Ruihua reappoint to agreed Company the ,meeting general' shareholders the at approved and considered as 2014, In to authorized was Board the and 2014, of year the for Company the of auditors the as Accountants Public Certified 700,000RMB and 1,800,000RMB approximately of remuneration a pay to agreed Company The .remuneration their fix year the for respectively control internal and reporting financial for services audit of provision the for auditors the to .expenses travel corresponding the bear and 2014 December 31 ended

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

:Directors

the ,manager general deputy the ,accountant chief the of positions the held successively has 52, 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 63, 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 57, 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

deputy ,Electric Hisense of department planning financial the of head the as successively served has 40, 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 president vice the and 2013 April to 2010 March from Electric Hisense of manager general deputy the 2010, March to 2006 the been has He 2014. June since Company the of director a as served has He 2015. March to 2013 May from Company the of 2015. March since Company the of president

head the ,department development the of engineer an as served successively has Huang .Mr 56, aged ,Jian Xiao Huang .Mr international ,department management sales the of head ,department research the of division design conditioner-air the of Hisense Qingdao of manager general vice the as acted He . Company the of manager general the and director marketing of president vice the as acted has Huang .Mr 2014. February to 2007 February from .Ltd .,Co Holdings Marketing International 2014. June since Company the of director a as served has He 2014. March since Company the

from Law in .D .Ph a holds ,University Shandong of Management of School the of professor a 59, 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 independent an been has He 2014. February to 2008 March from) Exchange Stock Shenzhen the on listed (.Ltd .,Co Machinery 2012. June since Company the of director executive-non

天津財經(Economics & Finance of Institute Tianjin from accountancy in degree s'master a holds 50, 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 the at professor a was and 2000, to 1995 from)山東經濟學院(College Economics Shandong of Accountancy of Faculty Accountancy of School the of dean the was He 2011. to 2000 from College Economics Shandong of Accountancy of Faculty professor a ,dean the currently is He 2014. to 2011 from)山東財經大學(Economics and Finance of University Shandong of China of member council a ,)濟南大學管理學院(Jinan of University of Management of School the of supervisor .D .Ph a and the and chairman-vice the and ,China of Society Accounting of member council a ,)中國資產評估協會(Society Appraisal 山東省會計學會會計教育(Province Shandong of Society Accounting of Committee Education Accounting of general-secretary Stock Shanghai the on listed) (萊蕪鋼鐵股份有限公司(Ltd .,Co Steel Laiwu of director independent an was He .)專業委員會 山東省章 .(Ltd .,Co Blower Zhangqiu Shandong of director independent an and 2012 February to 2008 June from) Exchange director executive-non independent an and 2009 July since) Exchange Stock Shenzhen the on listed)(丘鼓風機股份有限公司 since) Limited Kong Hong of Exchange Stock The on listed)(中國玉米油股份有限公司(Limited Company Oil Corn China of 山東晨鳴紙業集團股份(Ltd .Co Holdings Paper Chenming Shandong of director independent an been has He 2009. November has He 2010. April since) Limited Kong Hong of Exchange Stock The and Exchange Stock Shenzhen the on listed)(有限公司 Shanghai the on listed)(山東鋼鐵股份有限公司(Ltd Company Steel and Iron Shandong of director independent an been also January since Company the of director executive-non independent an as served has He 2012. April since) Exchange Stock 2011.

in degree bachelor a with Economics and Business International of University the from graduated 44, 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

head ,centre finance of head the ,centre operation of head deputy the as served successively has 47, aged ,Lin Jian Xiao .Mr of department audit of head the was He .Group Hisense of president vice and president to assistant ,department finance of to 2008 January from Group Hisense of president-vice the been has He 2009. January to 2007 August from Group Hisense a 2014, January to 2009 January from Group Hisense of centre management operation and finance of head the 2014, January of director a been has He 2008. June since Electric Hisense of director a and 2000 January since Group Hisense of director He 2015. March to 2011 January from Company the of director a as served has He 2009. April since Conditioning-Air Hisense 2015. March to 2014 March from Company the of president the been has

of manager general vice the and manager general the to assistant the as successively served has 50, 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 47, 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

:Supervisors

He .Group Hisense of director legal the and department legal the of head the as served has He 45. aged ,Shun Zhen Liu .Mr Hisense of committee inspection discipline the of secretary deputy the ,department affairs legal the of head deputy the was 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 34, 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 as served has She 2015. February to 2013 March from Group Hisense of department management operation and finance the of 2014. January since Company the of supervisor a

capital the of manager deputy the as served has He .administration business in degree master a holds 40, aged ,Peng Shu .Mr February to 2006 May from Company the of department finance the of head deputy the was He .Company the of department of manager the 2012, December to 2012 February from Ltd .,Co Plastic Rongsheng Shunde Foshan of head deputy the 2012, department finance the of head deputy the and 2013 May to 2012 December from Ltd .,Co Plastic Rongsheng Shunde Foshan 2015. January since Company the of supervisor a as served has He 2013. May since Company the of

promotion management the of director deputy a was He .law in degree bachelor a holds 41, aged ,Jun Jian Zhang .Mr the of director deputy the 2008, March to 2007 March from Company the of company marketing domestic the of department and 2009 August to 2008 March from Company the of company marketing domestic the of department management integrated the been has He 2010. August to 2009 November from Company the of company marketing domestic the of counsel legal the the of supervisor a been has He 2014. December to 2010 September from Company the of department affairs legal the of head 2015. January to 2012 June from Company

Firm Law Wenhan and Shandong in office advisory legal the in lawyer time-part a as acted 61, 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 39. 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 42, 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

planning financial the of head deputy the as served successively has He .Accountant Public Certified a is 41, aged ,Hua Li .Mr Hisense of department management operation the of head and centre technology information the of director deputy ,department 2009 January from Group Hisense of centre management operation and finance the of director deputy the been has He .Group February to 2010 June from Group Hisense of department development strategic the of head the as acted has He 2010. June to 2015. March since Company the of accountant chief and finance of charge in person the been has He 2015.

operating capital the of head the previously was and ,management in degree master a holds 38, 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

United the ,Bradford of University the from Administration Business in degree master a holds 47, aged ,Fong Tak Wong .Ms Secretaries Chartered of Institute the and Secretaries Chartered of Institute Kong Hong the of member fellow a is and ,Kingdom Hong of Institute Taxation the of member fellow a and adviser tax certified a ,Kingdom United the in Administrators and been has She 2014. May to 1994 November since .Ltd Consultants Bright General of director managing the as acted She .Kong as acted She 2010. December since)星薈亞洲有限公司(LTD FASHION DRAGON DIAMOND of controller financial chief the 2012. June since Company the of secretary company the been has and 2012 June to 2011 April from secretary company joint a

the of analysis financial of head the as successively served has and accountant public certified a is 40, aged ,Jun Li .Ms finance 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 the of accountant chief the and finance of charge in person the been has She 2012. August to 2012 June from Company 2015 March to 2012 August from Company

chief the and department manufacturing refrigerator the of head the was He .engineer senior a is 51, 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 was41, aged ,li Yun Wang .Mr and 2010, October to 2010 January from Company the of company marketing domestic the of manager general executive the been has He 2012. February to 2010 November from Company the of company marketing domestic the of manager general 2014. March to 2010 December from Company the of president vice

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 672RMB of company listed the of shareholders to attributable profit net recorded Group The was dividend no (funds reserve any capitalize to not and 2014 for dividend any pay to not resolved Board The 2014. December .(2013 December 31 ended year the for Group the by paid

RESERVES

.statements financial the to) 31-34 (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 2014, December 31 ended year the For .(million 219RMB approximately to amounted activities operating from generated cash net 2013: (million 966RMB

approximately to amounting) balances bank pledged including (cash and deposits bank had Group the 2014, December 31 at As 192RMB 2013: (million 254RMB approximately to amounting loans bank and ,)million 474RMB 2013: (million 871RMB .(million

million 766RMB approximately to amounted 2014 December 31 ended year the for Group the of expenditures capital Total .(million 566RMB 2013:(

REMUNERATION' EMPLOYEES AND RESOURCES HUMAN

15,674 ,staff technical 5,112 comprising mainly ,employees 34,560 approximately had Group the 2014, December 31 at As with employees 6 had Group The .staff production 12,398 and staff administrative 831 ,staff financial 545 ,representatives sales the 2014, December 31 ended year the For .degree s'bachelor a with 3,799 and degree s'master a with 311 ,degree doctorate a .(million 2,137RMB to amounting 2013 in period corresponding (million 2,483RMB to amounted payroll staff s'Group

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 development the support effectively to as so ,externally and internally resources teacher of up building the promoted actively Company the ,year Every .resources human added-value achieve and personnel technical and management s'Company the of resources human and strategy operational annual the on based employees the for programs training and education formulates .needs development

124,804. reached participants of number the and ,Period Reporting the during total in courses 4,105 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 2014, December 31 at As as pledged were) million 192RMB 2013: December 31 (million 254RMB approximately of receivables trade and properties .borrowings s'Group the for security

EQUIPMENT AND PLANT ,PROPERTY

financial the to) 13 and 12 (7 Note in out set are Group the of equipment and plant ,property in movements the of Details .statements

SCHEMES PENSION

.statements financial the to 11 note in out set are 2014 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 2015, March 26 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 2014. December 31 ended year the for Group the of results

EXPENDITURE CAPITAL

sufficient has Group The .million 443RMB approximately be will 2015 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 2014, December 31 at As .Kong Hong and PRC the in institutions 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 2014, December 31 at As .Renminbi in denominated are million 822RMB than more which of ,)million 474RMB 2013: (million 871RMB to

to amounted liabilities current-non ,million 8,861RMB to amounted liabilities current s'Group the 2014, December 31 at As .million 3,458RMB to amounted Company the of shareholders the to attributable equity' shareholders and ,million 465RMB 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 2014, December 31 at As .(73.92% 2013:) 70.30%

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 2014. 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 2014, 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 had Group the of transactions connected continuing caps the exceeded not had and ,transactions relevant the of agreements the of terms the to pursuant policies pricing s'Company .announcements previous the in disclosed

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 2014, December 31 at As

		Percentage to total the
Class shares of	Number shares of	issued share capital
shares H	459,589,808	33.83%
shares A	898,905,752	66.17%
Total	1,358,495,560	100.00%

SHAREHOLDERS TEN TOP

ten top the which of ,total in") Shareholders "the (Company the of shareholders 35,045 were there 2014, December 31 at As :follows as were Shareholders

of Name Shareholder	Nature of 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	45.07%	68.12%	0
1 Note HKSCC Nominees Limited	Foreign legal person	459,128,768	33.80%	99.90%	0
China Huarong Asset Management .Ltd .,Co	State owned- legal person	30,000,000	2.21%	3.34%	0
Zhang Shaowu	Domestic natural person	6,500,000	0.48%	0.72%	0
4 Note Yi Zhang	Domestic natural person	3,044,453	0.22%	0.34%	0
4 Note Bing Zhang Jing	Domestic natural person	2,744,721	0.20%	0.31%	0
New China Life Insurance Company — Ltd Traditional — General Insurance Product — CT–L018 Shen 001	Other	2,499,903	0.18%	0.28%	0
Ping Life An Insurance Company of Ltd ,China bonus — bank — 3 Note bonus insurance	Other	2,308,114	0.17%	0.26%	0
Ping Life An Insurance Company China of — Ltd , Universal — Personal Universal Insurance 3 Note	Other	1,775,948	0.13%	0.20%	0
Ping Life An Insurance Company China of – Ltd , Traditional – High Interest Rate Insurance 3 Note Product	Other	1,655,600	0.12%	0.18%	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. shares H of holding its increased ,Company the of shareholder controlling the with concert in acting party a ,Limited Company) Kong .Company the of shares of number total the of 0.80% representing ,Period Reporting the during shares H10,869,000 by Company the of representing ,Period Reporting the of end the at total in shares H 64,869,000 of holder the is Limited Company) Kong Hong (Hisense .Company the of shares of number total the of 4.78%

there 2015, March 27 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 34,604 were

Directors the of Report

• bank bonus Ltd ,China of Company Insurance Life An Ping of manager the is Ltd ,China of Company Insurance Life An Ping 3. Life An Ping and Insurance Universal Personal – Universal – Ltd ,China of Company Insurance Life An Ping ,bonus insurance .Product Insurance Rate Interest High – Traditional – Ltd ,China of Company Insurance
• security guaranteed a through held were ,Company the of shareholder a ,Yi Zhang .Mr by held Company the of shares 3,044,453 The 4. Zhang .Mr by held Company the of shares 2,676,321 The .Limited Company Securities China of trading credit customer for account Securities GF of trading credit customer for account security guaranteed a through held were ,Company the of shareholder a ,Bing Jing .Limited Company

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	459,128,768	Overseas listed foreign shares
China Huarong Asset Management .Ltd .,Co	30,000,000	RMB ordinary shares
Zhang Shaowu	6,500,000	RMB ordinary shares
Yi Zhang	3,044,453	RMB ordinary shares
Zhang Bing Jing	2,744,721	RMB ordinary shares
New China Life Insurance Company — Ltd Traditional — General Insurance – Product CT–L018 Shen 001	2,499,903	RMB ordinary shares
Ping Life An Insurance Company of Ltd ,China bonus — bank — insurance bonus	2,308,114	RMB ordinary shares
Ping Life An Insurance Company China of — Ltd , Universal — Personal Universal Insurance	1,775,948	RMB ordinary shares
Ping Life An Insurance Company China of — Ltd , Traditional High — Interest Rate Insurance Product	1,655,600	RMB ordinary shares

party a is them of any or other each with connected is shares tradable of holders ten top the of any whether aware not is Company The :Note for Measures Administrative》 (上市公司收購管理辦法 《of meaning the within shareholders nine other the of any with concert in acting .(Companies Listed of Takeover the

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

following the 2014, December 31 at as ,Company the of executive chief the and supervisors ,Directors the to known is as far So in positions short or interests had) Company the of executive chief the and supervisors ,Directors the than other (persons of provisions the under Company the to disclosed be to need would which Company the of shares underlying or shares the or ,")SFO) ("Kong Hong of Laws the of 571 Chapter (Ordinance Futures and Securities the of XV Part of 3 and 2 Divisions Company the to notified otherwise as or ,SFO the of 336 section under kept be to required register the in recorded were which :("Exchange Stock Kong Hong "the (Limited Kong Hong of Exchange Stock The and

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 1 Note Company Limited	Beneficial owner	shares A	612,316,909 (L(	68.12%	45.07%
Qingdao Hisense Electric Holdings 1 Note Company Limited	of Interest controlled corporation	shares A	612,316,909 (L(	68.12%	45.07%
1 Note Hisense Company Limited	of Interest controlled corporation	shares A	612,316,909 (L(	68.12%	45.07%
1 Note (Hisense Kong Hong Company) Limited	Beneficial owner	shares H	64,869,000 (L (	14.11%	4.78%
Qingdao Hisense Electric Holdings 1 Note Company Limited	of Interest controlled corporation	shares H	64,869,000 (L (	14.11%	4.78%
1 Note Hisense Company Limited	of Interest controlled corporation	shares H	64,869,000 (L (	14.11%	4.78%
Prime Capital Management Company 2 Note Limited	Investment manager	shares H	60,520,691 (L (	13.16%	4.45%
3 Note .Inc Citigroup	Person having security interests shares in and custodian corporation / approved lending agent	shares H	30,181,081 (L( (S(172,000 7,150,918 (P(	6.56% 0.03% 1.55%	2.22% 0.01% 0.53%

.pool lending denotes" P "letter the and position short a denotes" S "letter the ,position long a denotes" L "letter The

:Notes

• 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 60,520,691 of total a in interested was Limited Company Management Capital Prime 2. .SFO the of virtue by
• the in interested was Limited Markets Global Citigroup which in ,shares H these in interested was .Inc Citigroup ,SFO the of virtue By 3. H 172,000 of position long the in interested was Limited Kong Hong Markets Global Citigroup; shares H 22,858,163 of position long Among .shares H 7,150,918 of position long the in interested was .A.N Citibank and shares H 172,000 of position short the and shares security having person as shares H 22,857,165 of position long the in interested was .Inc Citigroup ,shares H the in interests such 172,998 of position long the and agent lending approved or corporation custodian as shares H 7,150,918 of position long the ,interests .corporation controlled of interest as shares H 172,000 of position short the and shares H

Company the of executive chief and supervisors ,Directors the as far so in 2014, 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

Reporting the during options share the of Movements "section-sub the in and below disclosed as save 2014, December 31 at As none ,"thereunder grant the and scheme incentive option share first of adoption on Summary "headed section the under" Period any in positions short or interests any held Company the of executive chief the and supervisors ,Board the of members the of Part of meaning the within (corporations associated its of any and Company the of debentures and shares underlying ,shares as or SFO the of 352 section to pursuant Group the by maintained be to required register the in recorded as ,)SFO the of XV .Code Model the to pursuant Exchange Stock Kong Hong the and Company the to notified otherwise

Company the of shares the in position Long

of Name Director	of Nature interest	Number shares of held	Percentage the to total issued shares the of Company	Percentage the to relevant of class issued of shares the Company
Tang Guo Ye	Beneficial owner	415,800 shares A	0.03%	0.046%
Xiao Lin Jian	Beneficial owner	273,240 shares A	0.02%	0.030%

SUPPLIERS AND CUSTOMERS MAJOR

was suppliers five top the from purchases s'Group the of amount aggregate the 2014, December 31 ended year the During amount sales aggregate the and year the for Group the of amount purchase total the of 15.28% representing ,million 2,866RMB As .year the for Group the of amount sales total the of 23.66% representing ,million 5,766RMB was customers five top the to ,Directors the of knowledge the to ,who Shareholders or associates close their ,Directors the of none 2014, December 31 at .customers or suppliers above the in interest any had ,Company the in shares the of 5% than more held

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

Ruihua appoint-re to agreed Company the ,meeting general' shareholders the at approved and considered as 2014, June 26 On fix to authorized was Board the and 2014, of year financial the for Company the of auditor the as Accountants Public Certified .remuneration their

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 2014 (shares 0000('	of Number options share exercised the during Reporting Period (shares 0000('	of Number options share during lapsed Reporting the Period (shares 0000('	of Number options share cancelled the during Reporting Period (shares 0000('	Outstanding options share 31 at as 2014 December (shares 0000('	a As of percentage total the capital share	a As percentage share of of capital class same the (shares A(
1	Guo Ye Tang	Chairman	126	41.58	—		84.42	0.06%	0.09%
2	Lin Jian Xiao	Former Former ,Director President	(2 Note (82.8	27.324	—		55.476	0.04%	0.06%
3	Qian Shao Jia	President-Vice	82.8	25.806	—	—	56.994	0.04%	0.06%
4	Ren Li Ren	Former former ,Director President	) 3 Note (72	A/N	—	—	A/N	A/N	A/N
5	Qing Yu Zhang	Former President-Vice	) 3 Note (82.8	A/N	—	—	A/N	A/N	A/N
6	Li Yun Wang	Former President-Vice	) 3 Note (82.8	A/N	—	—	A/N	A/N	A/N
7	He Yong Gan	Former former ,Director President-Vice	) 3 Note (18.1	A/N	—	—	A/N	A/N	A/N
8	level Mid management key and staff personnel		936.9	349.371	41.61	(4 Note (508.41	801.619	0.59%	0.89%
	Total		1,484.2	444.081	41.61	(4 Note (508.41	998.509	0.74%	1.11%

:Notes

• .granted been have Scheme the under issue for available options share All 1.
• 1. March 17 on respectively president and director as positions his from resigned Lin Jian Xiao .Mr 2.
• as positions their from resigned respectively He Yong Gan .Mr and Li Yun Wang .Mr ,Qing Yu Zhang .Mr ,Ren Li Ren .Mr 3. 2014. March 27 on president-vice and president ,director
• 4,668,000 subscribing for options share the includes cancelled were which Shares A 5,084,100 subscribing for options share The 4. 2013. October 18 on lapsed had which Shares A

options share the of price exercise the and date grant The) 3(

.share per 7.65RMB is price exercise the and 2011 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

any by acquired be may which shares underlying of number aggregate the ,meeting general the in 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

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 RMB of expense an recognized Company

THE DURING COMPANY THE OF TRANSACTIONS CONNECTED MATERIAL OF PARTICULARS PERIOD REPORTING

Financial ,Agreement Framework operation-Co Business the into entered Company the 2013, November 21) I( Purchase the and 2 Agreement Framework Business 1, Agreement Framework Business ,Agreement Services ,Hitachi Hisense ,Finance Hisense ,Electric Hisense ,Group Hisense with Agreement Framework Agency Financing .respectively Kong Hong Hisense and Whirlpool–Hisense

the of shareholder substantial a being of virtue by Company the of person connected a is conditioning-Air Hisense Company the of shares issued the of 45.22% approximately owned then (45.07% approximately holding ,Company approximately holds Kong Hong Hisense and Company the of shares issued the of) agreement the of date the at as the of) agreement the of date the at as Company the of shares issued the of 3.99% approximately owned then (4.78% Hisense and conditioning-Air Hisense of 47.90% owns indirectly Group Hisense As .Company the of shares issued by) agreement the of date the at as 40.43% to as owned then (40.37% to as owned is Electric Hisense and Kong Hong Hisense limitation without including (subsidiaries respective their and Electric Hisense ,Group Hisense ,Group Hisense Listing Kong Hong the to according Company the of persons connected are) subsidiaries its and Marketing International the of person connected a is therefore Finance Hisense ,Group Hisense of subsidiary a is Finance Hisense .Rules management senior also are Company the of directors certain As .Rules Listing Kong Hong the to according Company the of persons connected are Whirlpool–Hisense and Hitachi Hisense ,Whirlpool–Hisense and Hitachi Hisense of .Exchange Stock Shenzhen the on Stocks of Listing the Governing Rules the to according Company

Financial the ,Electric Hisense and Group Hisense with Agreement Framework operation-Co Business the of Details Business and Hitachi Hisense with 1 Agreement Framework Business ,Finance Hisense with Agreement Services the on published circular the and announcement the in found be can Whirlpool-Hisense with 2 Agreement Framework 2013 December 18 and 2013 November 21 on) hk.com.hkex.www://http (Exchange Stock Kong Hong the of website .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 2013. November 21 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 Business the of information Specific .)Rules Listing Kong Hong the to pursuant requirements approval' shareholders :follows as out set is Agreement Services Financial the and Agreement Framework operation-Co

Electric Hisense and Group Hisense with Agreement Framework operation-Co Business The 1.

equipment ,components and parts and materials raw ,appliances electrical home of supply the ,hand one the On to help can subsidiaries respective their or/and Electric Hisense ,Group Hisense to Group the by moulds and enhance turn in which ,level production in increase the of result a as Group the of costs production the lower develop to continue can Group the ,time same the At .products s'Group the of competitiveness market the by share market increase also can Group The .awareness and competitiveness brand enhance and market overseas product the reduces which Electric Hisense and Group Hisense of platform online the through products selling the of income the increase will subsidiaries its or/and Group Hisense to services of Provision .links circulation Hisense by provided services and prices ,quality product the account into taking ,hand other the On .Group ,equipment ,appliances electrical home of purchases ,subsidiaries respective their or/and Electric Hisense ,Group subsidiaries respective their or/and Electric Hisense ,Group Hisense from components and parts and materials raw related of development the and Company the of needs manufacture the meet can services their of engagement and 'years 10 over has ,Group Hisense of subsidiary a ,Marketing Hisense .costs reduce help also can and ,business overseas in channels and network market mature and expertise professional ,operations overseas in experience provide will which subsidiaries its or/and Group Hisense of services agency export the engaging By .market can Group the ,market international the of development its for Group the to services management professional available the use and ,itself by operation the running for committed be to have would which costs reduce largely will which ,exported be to products the for warranties quality the and development and research the on resources ,such As .time same the at business export its of development stable the enhancing in Group the to beneficial be Hisense and Group Hisense with Agreement Framework operation-Co Business the into entered Company the :follows as are which of terms principal the ,Electric

• the of approval of date the from commence shall Agreement Framework operation-Co Business The) 1( (2014 January 10 ,is that (shareholders independent the by Agreement Framework operation-Co Business the of agreement mutual by expiration its before terminated be can which 2014, December 31 until .parties
• Hisense and hand one the on Group the between appliances electrical home of purchase the for Pricing) 2( by determined is hand other the on subsidiaries respective their or/and Electric Hisense ,Group reasonableness and fairness of principles the to according parties the between negotiation commercial Pricing .time to time from appliances electrical home similar of price market the to reference with mainly hand one the on Group the between components and parts ,equipments ,materials raw of purchase the for determined is hand other the on subsidiaries respective their or/and Electric Hisense ,Group Hisense and .reasonableness and fairness of principles the to according parties the between negotiation commercial by respective their or/and Electric Hisense ,Group Hisense to Group the by moulds of supply the for Pricing of provision the for Pricing .process bidding open the by determined price market the is subsidiaries respective their or/and Electric Hisense ,Group Hisense and hand one the on Group the between services of principles the to according negotiations commercial by determined is hand other the on subsidiaries of provision the for price market the to reference with parties the between reasonableness and fairness for services agency the of provision the for Group the by payable fees The .industry the in services similar of export from revenue s'Group the multiplying by calculated is Group the of goods white the for export third to Group the by sales for revenue of amount final the be shall which (products of type relevant the audited the consideration into Taking .percentage fee agency export an with) RMB in customers party agency providing for subsidiaries its or/and Marketing Hisense by incurred actually charges the of rate charges the of rate the 2012, June to 2011 March from period the for Group the to export for services the and percentage base the as used be shall) 7.24% being (2012 of half first the during incurred actually its or/and Group Hisense to Group the by payable services agency export for margin profit corresponding the to subject export from revenue the of rate growth the to according determined be shall subsidiaries the of term the during percentage fee agency export the which to pursuant 2014, in services agency export below table the in provided as determined be also shall Agreement Framework operation-Co Business

Growth rate the of revenue 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%

revenue audited s'Group the = (services agency export the to subject export from revenue the of rate Growth :Note subject export from revenue audited s'Group the — 2014 in services agency export the to subject export from agency export the to subject export from revenue audited s'Group the/)2012 in services agency export the to 2012. in services

• Hisense ,Group Hisense and hand one the on Group the between transactions the for) s(term Payment) 3( payment the with accordance in be shall hand other the on subsidiaries respective their or/and Electric fees The .thereto parties relevant the by signed be to) s(contract definitive the in stipulated as) s(term be will Group the of products goods white the of export for services agency the of provision the for the for fee monthly the pay should Group the of members relevant the and basis monthly a on calculated .bills or transfer telegraphic of way by month preceding
• :below table the in shown are Agreement Framework operation-Co Business the under caps annual The) 4(

	: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	303,895 85
	Sale equipment of Group the by	Group Hisense	856
	moulds of Sale Group the by	Group Hisense Hisense Electric	25,566 9,402
	of Sale materials raw and parts , components Group the by	Group Hisense Hisense Electric	1,625 1,280
Provision services of	Provision loading of unloading and design , equipment , and rental property services Group the by	Group Hisense	687
Purchase products of materials and	Purchase home of electrical appliances products Group the by	Group Hisense Hisense Electric	60 51
	of Purchase materials raw and parts , components Group the by	Group Hisense Hisense Electric	1,801 4,997
	Purchase equipment of Group the by	Group Hisense	400
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	11,859
	of Receipt and property services design Group the by	Hisense Electric	1,153

Finance Hisense with Agreement Services Financial The 2.

,Group the to Finance Hisense by offered deposits and loans on rates the from benefit to expected is Group The same the at and ,banks commercial PRC the by offered those than favourable more or to equal be will which of provision the allow should which Group the of operations the of understanding better s'Finance Hisense ,time Hisense ,hand other the On .banks commercial PRC by offered those than services efficient and expedient more engages and) Commission Regulatory Banking China (中國銀行業監管管理委員會 by regulated is Finance issued requirements operation and regulations the with compliance in services financial of provision the into the within companies the are Finance Hisense of customers primary The .authorities regulatory relevant the by financial the to exposed those than less are Finance Hisense to exposed risks the as ,general In .Group Hisense 'customers the safeguard to able is Finance Hisense ,base customer unrestricted and broad a with institutions Hisense with Agreement Services Financial the into entered Company the ,such As .effectively more funds :follows as are which of terms principal the ,Finance

36,683 Group Hisense Group the by goods white the of export for services agency of Receipt

• Financial the of approval of date the from commence shall Agreement Services Financial the of term The) 1( 2015, December 31 until) 2014 January 10 ,is that (shareholders independent the by Agreement Services remedied not is default such and default in is party other the if party either by terminated be can which .period reasonable a within
• electronic and loan ,services deposit include Group the to Finance Hisense by provided be to services The) 2( settlement and) 票據貼現服務 (services discount draft ,services) 電子銀行承兌匯票 (bill acceptance bank for services settlement as such services agency and) 結售匯服務 (services exchange foreign of sale and .(資金收支結算等代理類服務 (funds of payment and receipt
• rate the than lower be not shall Finance Hisense with deposits s'Group the for payable rate interest The) 3( charged rate interest The .deposits comparable for PRC the in banks commercial normal by payable by charged rate the than higher be not shall Finance Hisense by Group the to provided loans the for provision the for charged fees service The .loans comparable for PRC the in banks commercial normal than higher be not shall Group the for Finance Hisense by services bill acceptance bank electronic of .services comparable for PRC the in banks commercial normal by charged fees service standard the respect in assets over pledge or security or guarantee provide to Group the require may Finance Hisense then the on depending ,rendered services bill acceptance bank electronic the and services loan the of by services discount draft of provision the for rate discount The .needs business and circumstances (再貼現利率 (rate rediscount the of basis the on determined be shall Group the to Finance Hisense the than higher be not shall and level market to reference with and China of Bank s'People The by quoted The .Group the to services such providing PRC the in banks commercial normal by charged rate discount exchange foreign of sale and settlement the for) rates exchange of level the including (services of level (rates exchange of level the including (services of level the than worse be not shall Finance Hisense at standard charging The .Group the to services such providing PRC the in banks commercial normal of receipt for services settlements as such services agency of provision the for chargable fees service for standard charging the than higher be not shall Group the for Finance Hisense by funds of payment and the during PRC the in agencies similar or banks commercial normal of services such for fees service for .period corresponding
• during time any at Finance Hisense with Group the by placed deposits the of balance daily maximum The) 4( of inclusive (800,000,000RMB of cap the exceed not shall Agreement Services Financial the of term the provided bills acceptance bank electronic and loan of balance maximum The .day given any on) interest exceed not shall Agreement Services Financial the of term the during Group the for Finance Hisense by payable interest discount annual The .)fees service and interest of inclusive (billion 2.2RMB of cap the the of term the during services discount draft of provision the for Finance Hisense to Group the by or settled amount annual The 50,000,000.RMB of cap the exceed not shall Agreement Services Financial amount annual The \$500,000,000.US of cap the exceed not shall Group the for Finance Hisense by sold as such services agency of provision the for Finance Hisense to Group the by payable fees service the of the exceed not shall) 資金收支結算等代理類服務 (funds of payment and receipt for services settlement 5,000,000.RMB of cap

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

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 Whirlpool	Purchase	Finished goods	Agreed price	43,013.37	2.07
Hisense Electric	Purchase	Finished goods	Agreed price	7.05
Hisense Group	Purchase	Finished goods	Agreed price	228.47	0.01
— Hisense Whirlpool	Purchase	Materials	Agreed price	859.32	0.04
Hisense Hitachi	Purchase	Materials	Agreed price	623.02	0.03
Hisense Group	Purchase	Materials	Agreed price	1,667.28	0.08
Hisense Electric	Purchase	Materials	Agreed price	2,221.47	0.11
Hisense Group	Receipt services of	Receipt services of	Agreed price	39,545.39	1.90
Hisense Electric	Receipt services of	Receipt services of	Agreed price	999.70	0.05
Hisense Kong Hong	Receipt services of	Receipt purchase of financing agency services	Agreed price	21,324.41	1.03
Hisense Electric	Sale	Finished goods	Agreed price	0.47
Hisense Hitachi	Sale	Finished goods	Agreed price	4,195.00	0.16
Hisense Group	Sale	Finished goods	Market price	178,298.76	6.72
— Hisense Whirlpool	Sale	Materials	Agreed price	1,230.04	0.05
Hisense Group	Sale	Materials	Agreed price	1,231.78	0.05
Hisense Hitachi	Sale	Materials	Agreed price	117.84
Hisense Electric	Sale	Materials	Agreed price	59.25
— Hisense Whirlpool	Sale	Materials	Agreed price	208.52	0.01
Hisense Group	Sale	and Moulds equipment	Agreed price	20,831.35	0.79
Hisense Hitachi	Sale	Moulds	Market price	752.31	0.03
— Hisense Whirlpool	Sale	Moulds	Market price	419.65	0.02
Hisense Electric	Sale	Moulds	Market price	7,104.20	0.27
— Hisense Whirlpool	Provision services of	Provision services of	Agreed price	297.09	0.01
Hisense Group	Provision services of	Provision services of	Agreed price	512.90	0.02

698,828,900RMB of deposit of balance the had subsidiaries its and Company the ,Period Reporting the of end the at As bank electronic of balance 0,RMB of loan of balance actual the 3,200,300,RMB of received income interest and opening for fee handling the and 0RMB of notes discounted for payment interest 621,484,700,RMB of bill acceptance discounted of amount actual The .Finance Hisense with 995,600RMB of bill acceptance bank electronic for accounts of provision the for involved amount actual the 0,RMB was services discount draft of provision the for interest of provision the for paid fee service actual the and \$36,377,800US was services exchange foreign of sale and settlement 308,700.RMB was funds of payment and receipt for services settlement as such services agency

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 the to 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 800,000
	2 dated December 2014		Purchase raw of materials and parts , components by Group the	RMB 35,650,000
			of Receipt by services Group the	RMB 177,120,000
			Receipt agency of for services of export white goods by products Group the	RMB 439,330,000
			Supply home of electrical appliances by Group the	RMB 2,985,280,000
			of Supply equipment by Group the	RMB 8,000,000
			of Supply by moulds Group the	RMB 350,000,000
			Supply raw of materials and parts , components by Group the	RMB 67,050,000
			Provision of by services Group the	RMB 7,190,000
2	Purchase Financing Agency Framework Agreement 2 dated December 2014	Hisense Kong Hong	of Receipt financing agency by services Group the purchase to imported raw ,materials components and equipment	US \$100,000,000

Framework Agency Financing Purchase the and Agreement Framework operation-Co Business the of term The 21 ,is that (shareholders independent the by agreements such of approval of date the from commences Agreement Hisense ,Group Hisense and hand one on Group the between relationship The 2015. December 31 until) 2015 January .above disclosed been has hand other the on Kong Hong Hisense and Electric

Hong the of website the on published circular the and announcements the in found be can agreements the of Details .respectively 2014 December 19 and 2014 December 2 on) hk.com.hkex.www://http (Exchange Stock Kong

CODE GOVERNANCE CORPORATE

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	Total remuneration received from shareholders ' entities ten RMB( (thousand	Actual remuneration at received of end the the Reporting Period RMB ( ten (thousand
Tang Guo Ye	Chairman	Male 52		2012.06.26-2015.06.25	99.97	0	99.97
Min Shu Yu	Director	Female	63	2012.06.26-2015.06.25	0	—	—
Lan Lin	Director	Male 57		2012.06.26-2015.06.25	0	—	—
Ye Tian	Director President Vice Former President	Male 40		2014.06.26-2015.06.25 2015.03.17-2015.06.25 2013.05.17-2015.03.16	137.45	0	137.45
Huang Jian Xiao	Director Vice President	Male 56		2014.06.26-2015.06.25 2014.03.27-2015.06.25	100.34	0	100.34
Xiao Lin Jian	Former Director Former President	Male 47		2012.06.26-2015.03.16 2014.03.27-2015.03.16	88.59	0	88.59
Ren Li Ren	Former Director Former President	Male 50		2012.06.26-2014.03.26 2012.06.26-2014.03.26	54.35	0	54.35
Gan He Yong	Former Director Vice Former President	Male 47		2012.06.26-2014.03.26 2012.06.26-2014.03.26	25.61	0	25.61
Yi Xiang Xu	Independent non executive- Director	Male 59		2012.06.26-2015.06.25	9	0	9
Wang Guo Ai	Independent non executive- Director	Male 50		2012.06.26-2015.06.25	9	0	9
Wang Yu Xin	Independent non executive- Director	Male 44		2012.06.26-2015.06.25	24	0	24
Liu Shun Zhen	of Chairman Supervisory Committee	Male 45		2014.01.10-2015.06.25	—	—	—
Ling Yu Gao	Supervisor	Female	34	2014.01.10-2015.06.25	—	—	—
Peng Shu	Employee Representative Supervisor	Male 39		2015.01.15-2015.06.25	26.72	0	26.72
Guo Cun Qing	Former of Chairman	Male 61		2012.06.26-2014.01.09	—	—	—

Committee Supervisory

Name	Position	Gender	Age	Term Office of	Total remuneration received from the Company ten RMB( (thousand	Total remuneration received from shareholders ' entities ten RMB( (thousand	Actual remuneration at received of end the the Reporting Period RMB ( ten (thousand
Liu Yan Jiang	Former Supervisor	Female	39	2012.08.15-2014.01.09	—	—	—
Zhang Jun Jian	Former Employee Representative Supervisor	Male 41		2012.06.26-2015.01.14	30.22	0	30.22
Jia Qian Shao	Vice President	Male 42		2012.06.26-2015.06.25	72.08	0	72.08
Hua Li	Person of charge in finance	Male 41		2015.03.17-2015.06.25	0	0	0
Feng Xia	Secretary Board the to	Male 38		2012.06.26-2015.06.25	36.13	0	36.13
Wong Fong Tak	Company Secretary	Female	47	2012.06.26-2015.06.25	15.84	0	15.84
Zhang Qing Yu	Vice Former President	Male 51		2012.06.26-2014.03.26	79.91	0	79.91
Wang Li Yun	Vice Former President	Male 41		2012.06.26-2014.03.26	94.27	0	94.27
Jun Li	Former Person charge in finance of	Female	40	2012.08.15-2015.03.16	82.63	0	82.63

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

• by Board the to made suggestions on based determined is Company the of Directors the of remuneration the the and Directors the of duties the of basis the on Board the of committee appraisal and remuneration the approval and consideration to subject is and ,industry same the in companies listed other of level remuneration ;meetings general at shareholders the and Board the by
• committee supervisory the by made suggestions on based determined is supervisors the of remuneration the same the in companies listed other of level remuneration the and supervisors the of duties the of basis the on ;meetings general at shareholders the and Board the by approval and consideration to subject is and industry
• on based Board the to suggestion remuneration makes Board the of committee appraisal and remuneration the— ,risk ,management her/his under operation for undertaken responsibilities ,experience s'management senior the final The .Board the by approved and determined is which ,Company the to contribution her/his and pressure .review performance annual her/his with linked also is management senior the by received remuneration

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	On 2014, June 24 Company the received execution the judgment Fo) 2009 (of Zhong Zi Zhi Fa from 235 .No Foshan the Intermediate which ,Court the provides execution procedure above the of mentioned been has case concluded accordance in the with July In .law November and 2014, Company the from received Foshan the Intermediate Court of sum a approximately RMB and 3,000,000 approximately 9,007,000RMB respectively being , execution payment cases the of the involving Greencool .Companies	The the of effect cases involving Greencool on Companies profits net the to attributable shareholders of Company the the during reporting period was approximately RMB 17,440,000.	the at As ,hereof date Company the yet not has received execution judgment 1 for involving case Greencool .Companies

Company the by held companies listed other in Shareholdings .IV

			Shareholding	Carrying at amount	and Profit the for loss	Changes ownership in interests the for
Stock	Stock code abbreviation	Initial investment cost RMB( (thousand ten	percentage the in (%) company	end the period the of RMB( (thousand ten	Reporting Period RMB( (thousand ten	Reporting Period RMB( (thousand ten
000404	Huayi Compressor	2,417.14	3.74	8,189.07	700.07	622.70

guarantees of Particulars .V

applicable Not □ Applicable√

thousand ten RMB :Unit

	External Date disclosure of	guarantee by given	Company the	excluding ( guarantees	its for (subsidiaries
The guaranteed party	relevant of announcement in relation limit the to the on guaranteed amount	on Limit 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
Nil	—	—	—	—	—	—	—	—
limit Total amount the on approved during Reporting the	external of guarantees (1A (Period		0	amount Actual guarantees Reporting	external of the during (2A (Period			0
limit Total amount the on which been has at approved Reporting (3A (Period	external of guarantees the of end the		0	balance Total external guarantees of Reporting the	actual of of amount end the at (4A (Period			0

subsidiaries its for Company the by given Guarantees

The guaranteed party	Date disclosure of relevant of announcement in relation 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 22 2013	60,000	2013-03-13	19.89	liability Joint	2013.03.13-	Yes	No
Guangdong Refrigerator	November 22 2013	60,000	2014-03-05	9.44	guarantee liability Joint guarantee	2014.01.31 2014.03.05- 2015.01.31	No	No
Guangdong Refrigerator	November 22 2013	60,000	2014-01-24	1,263.50	liability Joint guarantee	2014.01.24- 2014.08.05	Yes	No
Guangdong Refrigerator	November 22 2013	60,000	2014-07-07	124.43	liability Joint guarantee	2014.07.07- 2015.01.03	No	No
Air Kelon conditioner-	November 22 2013	30,000	2013-11-26	199.08	liability Joint guarantee	2013.11.26- 2014.08.30	Yes	No
KelonAir conditioner-	November 22 2013	30,000	2014-05-05	160.00	liability Joint guarantee	2014.05.05- 2015.12.31	No	No
Air Kelon conditioner-	November 22 2013	30,000	2013-11-20	4,456.60	liability Joint guarantee	2013.11.20- 2014.12.18	Yes	No
Air Kelon conditioner-	November 22 2013	30,000	2014-10-10	170.63	liability Joint guarantee	2014.10.10- 2015.02.07	No	No
Home Co Appliances	November 22 2013	5,000	2013-12-20	135.41	liability Joint guarantee	2013.12.20- 2014.11.13	Yes	No
Home Co Appliances	November 22 2013	5,000	2014-06-23	125.30	liability Joint guarantee	2014.06.23- 2015.05.30	No	No
Home Co Appliances	November 22 2013	5,000	2014-06-20	60.00	liability Joint guarantee	2014.06.20- 2016.06.11	No	No
Home Co Appliances	November 22 2013	5,000	2014-01-29	1,780.49	liability Joint guarantee	2014.01.29- 2014.12.30	Yes	No
Guangdong Freezer	November 22 2013	5,000	2014-02-26	95.02	liability Joint	2014.02.26-	Yes	No

guarantee

2014.04.15

Directors the of Report

		Guarantees	by given Company the	its for	subsidiaries
The guaranteed party	Date disclosure of relevant of announcement in relation 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 22 2013	10,000	2013-05-14	163.78	liability Joint guarantee	2013.05.14- 2014.08.28	Yes	No
Yangzhou Refrigerator	November 22 2013	10,000	2013-05-14	86.26	liability Joint guarantee	2013.05.14- 2015.01.14	No	No
Ronsheng Plastic	November 22 2013	6,000	2013-11-25	3,049.59	liability Joint guarantee	2013.11.25- 2014.12.29	Yes	No
on limit Total of amount the during Reporting the	for guarantees subsidiaries (1B (Period	approved	183,000	Actual of amount (2B (Period	for guarantees	subsidiaries during	Reporting the	11,899.41
on limit Total of amount the approved been of end the at	for guarantees subsidiaries Reporting the (3B (Period	has which	183,000	balance Total of end	actual of of amount Reporting the (4B (Period	for guarantees	subsidiaries the at	736.05
	Total guaranteed	of amount	Company the being (	the of sum the	two previous	(items major
limit Total amount the on Reporting Period (1B1+A (	guarantees of approved	the during	183,000	amount Actual	guarantees of during	Reporting the	Period (2B2+A (	11,899.41
limit Total amount the on of end the Reporting the	guarantees of which been has Period (3B3+A (	at approved	183,000	balance Total Reporting	actual of of amount Period (4B4+A (	at guarantees	the of end the	736.05
of Proportion amount actual :Including	guarantees of being (	the to) 4B4+A of assets net	Company the					0.21%
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				330.63
Total guaranteed over amount	the of 50% (E (asset net							0
the of Sum three above	guarantees (E+D+C (							330.63
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

investment Derivatives .VI

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	Investment the at beginning the of Reporting Period	of Amount for provision impairment (any if(	Unit RMB : Investment end the at the of Reporting Period	ten in ( Proportion investment of net the to the of asset Company end the at the of Reporting Period (%)	(thousand Actual of amount and profit loss the during Reporting Period
Bank	No No		foreign Forward exchange contracts	278,543.31	January 1 2014	December 31 2014	278,543.31		221,160.98	63.95	(1,985.48)
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						2014 March 28
the of Date	announcement	disclosing	approval the derivatives of	investment during	' shareholders	) any if (meetings					2014 June 27

Risk analysis of positions in derivatives during the 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 used avoid to risk the foreign of exchange fluctuations related the to overseas sales receivables The . Company determines a reasonable of range foreign exchange rates achieve to 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 the basic principles , operation risk ,rules control measures and internal controls that be shall followed when engaging the in business foreign of 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 or price product fair of value invested derivatives during the Reporting Period where , specific methods and relevant assumptions and parameters used be shall disclosed the in analysis of derivatives fair' value	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 and ,banks are which recognized as transactional financial or assets liabilities based the on difference between the quotation the of outstanding foreign exchange forward contracts the and forward exchange as rate the at of end period the During . the Reporting Period the , Company recognized on gain a in change value fair the of derivatives RMB of -74,339,100. Investment gain amounted RMB to 54,484,300, resulting total a in profits or of losses RMB -19,854,800.
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	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 risks The . Company has devised the

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

applicable Not □ Applicable√

Company

Mould) Guangdong (Hisense and .Ltd .,Co Conditioner-Air) Guangdong (Hisense :subsidiaries consolidated Newly Limited Company Plastic

to Transactions Capital Exchange Foreign Forward for System Control Internal exchange foreign of management the enhance and control internal strengthen were adopted measures control risk targeted the and ,Company the by risks

Hisense and Limited Company Conditioner-Air) Guangdong (Hisense established newly ,Period Reporting the During .consolidation of scope the in included were Limited Company Plastic Mould) Guangdong(

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
Hisense" International "	Hisense International .Ltd .,Co
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
Kelon" -Air conditioner "	Guangdong Kelon -Air Conditioner .Ltd .,Co
Home" Appliances " Co	Guangdong Hisense Home Appliances Co Ltd ., former Its is name Guangdong Kelon Fittings Ltd .,Co which ., been has changed since April 10 2014
" Guangdong " Freezer	Hisense (Ronshen Guangdong Freezer) .Ltd .,Co
" Yangzhou Refrigerator "	Hisense (Ronshen Yangzhou ) Refrigerator .Ltd .,Co
" Ronsheng " Plastic	Foshan Shunde Rongsheng 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 2014 during Committee Supervisory the of work the you to report to :Company

PERIOD REPORTING THE DURING COMMITTEE SUPERVISORY THE OF WORK .I

as summarized are which of details ,meetings 5 of total a held Committee Supervisory the ,period reporting the During :follows

• 2014, January 10 on held was 2014 in Committee Supervisory the of session eighth the of meeting first The) 1( Supervisory the of session eighth the of chairman the as Shun Zhen Liu .Mr elect to resolution the which at ;approved and considered was Company the of Committee
• at 2014, March 27 on held was 2014 in Committee Supervisory the of session eighth the of meeting second The) 2( ; approved and considered were matters related and Company the of report annual 2013 the which
• at 2014, April 24 on held was 2014 in Committee Supervisory the of session eighth the of meeting third The) 3( ;approved and considered was Company the of report quarterly first 2014 the which
• at 2014, August 27 on held was 2014 in Committee Supervisory the of session eighth the of meeting fourth The) 4( ;approved and considered were matters related and Company the of report interim 2014 the which
• at 2014, October 29 on held was 2014 in Committee Supervisory the of session eighth the of meeting fifth The) 5( .approved and considered was Company the of report quarterly third 2014 the which

OF MATTERS RELEVANT ON COMMITTEE SUPERVISORY THE OF OPINIONS INDEPENDENT .II 2014 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 2014 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 2014 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 2014 s'Company of board the by Report Assessment Control Internal 2014 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 Mth17 .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

層3-4號樓2號院16北京市海澱區西四環中路:通訊地址 .C.R.P ,Beijing District Haidian ,Road Xisihuanzhong .16No 2 Tower ,F3-4 :Address Postal :100000(Code Post(郵政編碼 :0086-10-88219191(Tel(電話 :0086-10-88210558(Fax(傳真

95020024 [2015] 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 2014, December the to notes the and 2014 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

s'Company the ,aspects material all in ,fairly present Company the of statements financial the ,opinion our In results consolidated and s'Company the and 2014 December 31 at as position financial consolidated and Business for Standards Accounting with accordance in 2014 year the for flows cash and operations of .Enterprises

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

2015 March 26

Sheets Balance Consolidated

2014 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	870,663,755.12	473,787,177.54
Balances with clearing companies
Lending capital
Financial at assets value fair through profit loss or	162,460.00	67,115,019.35
Derivative financial assets
Notes receivable	991,796,937.82	2,160,801,733.50
Accounts receivable	1,984,291,386.93	1,644,771,822.27
Prepayments	498,209,306.68	352,903,571.02
Insurance premium receivable
Receivables from reinsurers
Reserves for reinsurance contract receivable
Interests receivable
Dividends receivable
Other receivables	493,051,526.66	546,337,496.66
Financial assets purchased under agreements resell to
Inventories	2,915,921,775.81	2,496,359,854.46
Assets classified held as sale for
Non current- assets within due year one
Other current assets	287,019,824.65	248,628,217.20
Total current assets	8,041,116,973.67	7,990,704,892.00
Non current- :assets
Disbursement of and loans advances
Available sale-for- financial assets	4,000,000.00	4,000,000.00
to-Held maturity- investments
Long term- receivables term-Long equity investments	1,216,043,770.20	993,500,673.77
Investment properties	31,459,416.41	33,946,307.75
Fixed assets Construction in progress	2,932,039,091.41 251,551,873.15	2,368,500,692.73 253,977,558.18
Construction materials
Disposal fixed of assets	134,612.95
Productive biological assets
and Oil assets gas
Intangible assets	670,944,657.29	521,782,817.81
Development costs
Goodwill
term-Long prepaid expenses	12,690,220.43	5,001,055.07
Deferred assets tax	106,813,348.23	36,616,861.02
non Other current- assets
non Total current- assets	5,225,676,990.07	4,217,325,966.33
Total assets	13,266,793,963.74	12,208,030,858.33

Sheets Balance Consolidated

2014 December 31

Item	Closing Balance	Opening Balance
Current :liabilities
Short term- borrowings	253,985,142.45	191,681,513.02
Borrowings from central bank
of Receipt deposits and deposits other from banks
Loans other from banks
Financial liabilities at value fair through profit loss or	7,391,136.66	4,645.00
Derivative financial liabilities
Notes payable	1,528,195,526.41	1,391,098,638.68
Accounts payable	3,465,854,583.60	3,480,510,368.16
Advances from customers	765,881,375.85	907,031,506.85
Proceeds from disposal of financial assets under agreements to repurchase
Handling and fees commission payable
Employee remunerations payable	249,664,285.98	236,343,013.69
Taxes payable	174,792,592.21	86,555,036.75
Interests payable
Dividends payable	2,067.02	9,002,067.02
Other payables	1,735,584,905.78	1,731,259,054.40
Reinsured accounts payable
Reserves for reinsurance contract
Customer brokerage deposits
Securities underwriting brokerage deposits
Liabilities classified held as sale for
Non current- liabilities within due year one
Other current liabilities	680,022,633.56	574,037,292.42
Total current liabilities	8,861,374,249.52	8,607,523,135.99
Non current- :liabilities
Long term- borrowings
Bonds payable
Including : Preference shares
Perpetual debts
term-Long payables
Long term- employee remunerations payable
Specific payables
Provisions	404,411,887.77	361,158,229.87
Deferred income	60,261,598.06	56,011,769.90
Deferred tax liabilities	165,600.70
non Other current- liabilities
non Total current- liabilities	464,839,086.53	417,169,999.77
Total liabilities	9,326,213,336.05	9,024,693,135.76

Sheets Balance Consolidated

2014 December 31

Item	Closing Balance	Opening Balance
Shareholders :equity'
Share capital	1,358,495,560.00	1,354,054,750.00
Other equity instruments
:Including Preference shares
Perpetual debts
Capital reserve	2,125,930,825.88	2,092,858,847.28
Less Treasury : shares
Other comprehensive income	39,990,884.45	40,350,357.85
Special reserves
Surplus reserves	145,189,526.48	145,189,526.48
General risk provisions
Undistributed profit	) 211,243,768.43	) ( 883,722,400.78 (
Total equity attributable to shareholders of parent the	3,458,363,028.38	2,748,731,080.83
Minority interests	482,217,599.31	434,606,641.74
Total shareholders equity'	3,940,580,627.69	3,183,337,722.57
Total liabilities and shareholders equity'	13,266,793,963.74	12,208,030,858.33
Legal representative Tang : Guo Ye Chief financial officer Hua Li :	Accounting supervisor	Yan : Yong Zhi

Company Parent of Sheets Balance

2014 December 31

RMB :Unit

Item	Closing Balance	Opening Balance
Current :assets
at Cash and bank hand on	28,279,997.40	194,913,820.28
Financial at assets value fair through profit loss or
Derivative financial assets
Notes receivable	21,212,318.94	2,027,916,069.94
Accounts receivable	1,728,905,969.96	670,881,711.22
Prepayment	437,314,766.27	833,406,962.27
Interests receivable
Dividends receivable		11,000,000.00
Other receivables	834,537,438.77	1,045,453,070.00
Inventories	488,848.54	1,722,669,777.53
Assets classified held as sale for
Non current- assets within due year one
Other current assets		102,035,462.26
Total current assets	3,050,739,339.88	6,608,276,873.50
Non current- :assets
Available sale-for- financial assets	4,000,000.00	4,000,000.00
to-Held maturity- investments
Long term- receivables
term-Long equity investments	3,722,635,609.58	3,531,519,488.35
Investment properties	12,449,817.00	13,834,076.00
Fixed assets	136,178,710.74	170,557,944.23
Construction in progress		255,384.60
Construction materials
Disposal fixed of assets
Productive biological assets
and Oil assets gas
Intangible assets	210,195,530.00	219,910,990.00
Development costs
Goodwill
term-Long prepaid expenses	2,347,333.36
Deferred assets tax
non Other current- assets
non Total current- assets	4,087,807,000.68	3,940,077,883.18
Total assets	7,138,546,340.56	10,548,354,756.68

Company Parent of Sheets Balance

2014 December 31

Item	Closing Balance	Opening Balance
Current :liabilities
Short term- borrowings
Financial liabilities at value fair through profit loss or
Derivative financial liabilities
Notes payable		1,424,477,630.22
Accounts payable	1,540,384,205.06	2,661,630,607.61
Advances from customers	30,571,318.62	789,669,536.98
Employee remunerations payable	4,695,796.34	100,022,496.03
Taxes payable	40,194,681.98	9,829,893.36
Interests payable
Dividends payable
Other payables	793,873,733.58	1,931,424,623.14
Liabilities classified held as sale for
Non current- liabilities within due year one
Other current liabilities	484,701,272.85	427,144,578.22
Total current liabilities	2,894,421,008.43	7,344,199,365.56
Non current- :liabilities
Long term- borrowings
Bonds payable
:Including Preference shares
Perpetual debts
term-Long payables
Long term- employee remunerations payable
Specific payables
Provisions	404,411,887.77	361,158,229.87
Deferred income	32,279,217.04	34,760,406.21
Deferred tax liabilities
non Other current- liabilities
non Total current- liabilities	436,691,104.81	395,918,636.08
Total liabilities	3,331,112,113.24	7,740,118,001.64
Shareholders :equity' Share capital	1,358,495,560.00	1,354,054,750.00
Other equity instruments
:Including Preference shares
Perpetual debts
Capital reserve	2,248,177,447.05	2,217,354,579.67
Less Treasury : shares
Other comprehensive income	29,436,301.71	29,582,203.03
Special reserves
Surplus reserves	114,580,901.49	114,580,901.49
Undistributed profit	56,744,017.07	) 907,335,679.15 (
Total shareholders equity'	3,807,434,227.32	2,808,236,755.04
Total liabilities and shareholders equity'	7,138,546,340.56	10,548,354,756.68

Statement Income Consolidated

2014 year the For

RMB :Unit

Item			Amount for current period	Amount for previous period
.I	Total	operating revenue	26,534,420,935.55	24,360,021,308.47
	:Including	Operating revenue	26,534,420,935.55	24,360,021,308.47
		Interest income
		Insurance premium earned
		Income from handling and fees commission
II	Total .	operating costs	26,183,318,375.81	23,538,198,019.35
	:Including	Operating costs Interest expenses	20,784,712,962.70	19,039,837,900.27
		Handling and fees commission expenses
		Refunded premiums
		Net amount of compensation payout
		Net of amount insurance contract reserves provided
		Policyholder dividend expenses
		Reinsurance premium expenses
		Business and taxes surcharges	98,323,909.43	99,639,534.69
		Selling and distribution expenses	4,388,690,223.86	3,678,122,171.15
		General and administrative expenses	856,931,761.63	814,452,637.11
		Financial expenses	) 3,966,187.82	) ( 27,474,387.27 (
		Impairment losses assets on	58,625,706.01	) 66,379,836.60 (
	:Add	Gain from in changes value fair Loss ( denoted ("–" by	) 74,339,051.01 (	56,596,312.10
		Investment income Loss ( denoted ("–" by	375,501,155.02	323,689,615.01
	Including	of Share : of profit associates and jointly controlled entities	311,516,852.93	299,785,829.53
		Foreign exchange gains Loss ( denoted ("–" by
.III	Operating	profits Loss ( denoted ("–" by	652,264,663.75	1,202,109,216.23
	:Add	Non operating- income	124,362,153.94	114,840,364.46
		Including on Gain : disposal non of current- assets	1,623,453.29	12,010,056.34
	:Less Non	operating- expenses	5,391,172.93	17,536,717.20
		Including on Loss : disposal non of current- assets	3,967,010.86	11,713,968.79
IV T	otal . (profit	loss Total denoted ("–" by	771,235,644.76	1,299,412,863.49
	:Less	Income tax expenses	59,725,146.29	53,618,940.95
et .V N	profits	loss Net ( denoted ("–" by	711,510,498.47	1,245,793,922.54
	Net profits	attributable to shareholders of parent the	672,478,632.35	1,215,669,602.07
	and Profit	of loss minority interests	39,031,866.12	30,124,320.47

Statement Income Consolidated

2014 year the For

Item				Amount for current period	Amount for previous period
VI	Other .		comprehensive income after net ,tax	) 359,473.40 (	19,517,764.27
	Other		comprehensive income tax after attributable owners to the of
		net ,parent		) 359,473.40 (	19,517,764.27
	A	Items .	be to not reclassified into profit in loss or subsequent
			periods		) 4,298,798.14 (
		1.	Changes arising from remeasurement net of liabilities or assets defined of benefit plan
		2.	Share other of comprehensive income the of investee not be to reclassified profit into loss or under equity the
			method		) 4,298,798.14 (
	B	Items .	be to reclassified into profit in loss or subsequent periods	) 359,473.40 (	23,816,562.41
		1.	Share other of comprehensive income the of investee be to reclassified profit into loss or under equity the
			in method subsequent periods	) 145,901.32 (	23,587,913.49
		2.	Gains losses or from changes fair in of value available sale-for financial assets
		3.	or Gains on losses reclassification to-held of maturity- investments as available sale-for- financial assets
			The 4. effective portion gains of losses or from flow cash hedges
		5.	Differences on translation foreign of currency financial statements	) 213,572.08 (	228,648.92
		6.	Others
			Other comprehensive income tax after attributable to minority interests net ,
VII	Total .		comprehensive income	711,151,025.07	1,265,311,686.81
	Total		comprehensive income attributable to shareholders of parent the	672,119,158.95	1,235,187,366.34
	Total		comprehensive income attributable to minority interests	39,031,866.12	30,124,320.47
VIII		Earnings .	per :share
		Basic) 1(	earnings share per	0.50	0.90
	(	Diluted) 2	earnings share per	0.50	0.90

Company Parent of Statement Income

2014 year the For

RMB :Unit

Item				Amount for current period	Amount for previous period
.I	Total		operating revenue	3,697,678,120.33	15,423,216,361.55
	:Less		Operating costs	2,766,141,571.10	12,121,678,413.48
			Business and taxes surcharges	35,134,769.91	57,959,862.64
			Selling and distribution expenses	311,811,541.12	2,977,239,232.30
			General and administrative expenses	40,481,244.98	47,475,414.09
			Financial expenses	) 2,130,136.76 (	14,707,486.54
			Impairment losses assets on	) 62,556,739.39 (	13,221,334.10
	:Add		Gain from in changes value fair Loss ( denoted ("–" by
			Investment income Loss ( denoted ("–" by	339,100,658.73	343,865,847.73
			Including of Share : of profit associates and jointly
			controlled entities	311,516,852.93	276,450,379.99
.II		Operating	profits Loss ( denoted ("–" by	947,896,528.10	534,800,466.13
	:Add		Non operating- income	16,926,025.43	4,723,672.17
			Including on Gain : disposal non of current- assets	64,150.61
	:Less		Non operating- expenses	742,857.31	5,110,460.03
			Including on Loss : disposal non of current- assets	239,448.02	147,301.11
III	otal . T	(profit	loss Total denoted ("–" by	964,079,696.22	534,413,678.27
	:Less		Income tax expenses		7,149,676.20
N	et .IV	profits	loss Net ( denoted ("–" by	964,079,696.22	527,264,002.07
.V	Other A	Items .	comprehensive income after net ,tax be to not reclassified into profit in loss or subsequent	) 145,901.32 (	19,289,115.35
			periods		) 4,298,798.14 (
		1.	Changes arising from remeasurement net of liabilities or assets defined of benefit plan
		2.	Share other of comprehensive income the of investee not be to reclassified profit into loss or under equity the
			method		) 4,298,798.14 (
	B	Items .	be to reclassified into profit in loss or subsequent periods	) 145,901.32 (	23,587,913.49
		1.	Share other of comprehensive income the of investee
			be to reclassified profit into loss or under equity the
			in method subsequent periods	) 145,901.32 (	23,587,913.49
		2.	Gains losses or from changes fair in of value available
			sale-for financial assets
		3.	or Gains on losses reclassification to-held of maturity-
			investments as available sale-for- financial assets
			The 4. effective portion gains of losses or from flow cash hedges
		5.	Differences on translation foreign of currency financial statements
		6.	Others
VI	Total .		comprehensive income	963,933,794.90	546,553,117.42

:share per Earnings .VII

share per earnings Basic) 1(

share per earnings Diluted) 2(

Statement Flow Cash Consolidated

2014 year the For

RMB :Unit

Item current	Amount for Amount for period previous period
I Cash . flows from operating :activities
Cash received from of sales and goods rendering of services 13,458,272,981.18	12,720,006,814.03
Net increase in customer deposits and interbank deposits
Net increase in borrowings from central bank
Net increase in placements other from financial institutions
Cash received from original insurance contracts
cash Net received from reinsurance business
Net increase in deposits and investments from policyholders
Net increase from disposal of financial at assets value fair through
profit loss or
Cash received from interests and fees , commissions
Net increase in placements from banks other and financial institutions
Net increase in repurchase business capital
Tax rebates received	759,461,588.28 680,222,674.80
Other cash received concerning operating activities	1,159,263,877.98 1,163,188,431.87
Subtotal cash of inflows from operating activities 15,376,998,447.44	14,563,417,920.70
Cash for paid purchases of commodities and of receipt services	7,165,880,178.95 8,442,872,755.59
Net increase in and loans advances to customers
Net increase in deposits with central bank other and banks Cash for paid compensation under original insurance contract
Cash for paid interests and fees , commissions
Cash for paid policyholders ' dividend
paid Cash for and to employees	2,483,052,331.95 2,136,796,995.31
Cash for paid and taxes surcharges	947,984,920.48 952,876,720.89
paid Cash other for operating activities	3,814,090,558.19 2,812,073,099.38
Subtotal cash of outflows from operating activities 14,411,007,989.57	14,344,619,571.17
cash Net flows from operating activities	965,990,457.87 218,798,349.53
II Cash . flows from investing :activities
Cash received from recovery of investments	88,200,000.00 73,500,000.00
Cash received from investment income	10,127,855.18 4,750,000.00
cash Net received from disposals fixed of ,assets intangible assets
other and term-long assets	9,319,673.61 14,909,409.58
cash Net received from disposals of subsidiaries other and operation
units
Cash received relating other to investing activities
Subtotal cash of inflows from investing activities	107,647,528.79 93,159,409.58
Cash for paid acquisition fixed of ,assets intangible assets other and
term-long assets	766,186,788.01 565,717,025.69
Cash for paid investments
Net increase pledge in loans
Cash for paid acquiring subsidiaries other and operation units
paid Cash relating other to investing activities Subtotal cash of outflows from investing activities	766,186,788.01 565,717,025.69
cash Net flows from investing activities )	658,539,259.22 ) ( 472,557,616.11 (

Statement Flow Cash Consolidated

2014 year the For

Amount for previous period	Amount for current period		Item
		Cash . flows from financing :activities	III
67,210,551.74	48,566,371.50	Cash received from capital contribution
		Including Cash : contribution to subsidiaries from minority
	14,594,175.00	shareholders ' investment
406,785,264.38	1,332,590,807.75	Cash received from borrowings
		Cash received from issuance bonds of
		Cash received relating other to financing activities
473,995,816.12	1,381,157,179.25	Subtotal cash of inflows from financing activities
244,645,738.20	1,264,519,716.22	Cash for paid repayment of borrowings
		Cash for paid distribution of dividends or profit , payment of interest
15,790,611.76	26,947,098.71	expenses
		Including Dividend : profit and to paid minority shareholders by subsidiaries
		paid Cash relating other to financing activities
260,436,349.96	1,291,466,814.93	Subtotal cash of outflows from financing activities
213,559,466.16	89,690,364.32	cash Net flows from financing activities
		Effects foreign of exchange rate changes cash on cash and	.IV
) ( 474,398.57 (	89,985.39)	equivalents
40,674,198.99 (	397,051,577.58 )	et .V increase cash in cash and equivalents	N
		Add Balance : cash of cash and equivalents the at beginning the of
513,661,376.53	472,987,177.54	period
472,987,177.54	870,038,755.12	alance cash of cash and equivalents the at the of end period	.VI B

Company Parent of Flow Cash

2014 year the For

RMB :Unit

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	3,144,437,078.13	5,547,186,231.84
	Tax rebates received		16,125.89
	Cash received concerning other operating activities	4,706,266,480.65	4,649,456,072.35
Subtotal	cash of inflows from operation activities	7,850,703,558.78	10,196,658,430.08
	Cash for paid purchases of commodities and receipt labor of services	4,018,419,419.99	7,080,037,287.04
	paid Cash for and to employees	318,793,009.54	898,357,768.42
	Cash for paid and taxes surcharges	312,758,318.32	570,313,096.58
	paid Cash other for operating activities	3,575,499,239.76	1,722,281,355.59
Subtotal	cash of outflow from operating activities	8,225,469,987.61	10,270,989,507.63
	cash Net flows from operating activities	) 374,766,428.83	) ( 74,331,077.55 (
.II	flow Cash from investing :activities
	Cash received from recovery of investments	145,730,000.00	73,500,000.00
	Cash received from investment income	32,005,136.18	33,080,018.20
	cash Net received from disposals fixed of ,assets intangible assets and
	other term-long assets	154,932.27	247,851.86
	cash Net received from disposals of subsidiaries other and operation
	units
	Cash received relating other to investing activities
Subtotal	cash of inflows from investing activities	177,890,068.45	106,827,870.06
	Cash for paid acquisition fixed of ,assets intangible assets other and
	term-long assets	3,729,659.00	5,495,402.80
	Cash for paid investments		175,000,000.00
	cash Net for paid acquisition of subsidiaries other and operation units
Subtotal	paid Cash relating other to investing activities cash of outflows from investing activities	3,729,659.00	180,495,402.80
	cash Net flows from investing activities	174,160,409.45	) 73,667,532.74 (
III	Cash . flows from financing :activities
	Cash received from capital contribution	33,972,196.50
	Cash received from borrowings
	Cash received from issuance bonds of
	Cash received relating other to financing activities
Subtotal	cash of inflows from financing activities	33,972,196.50
	Cash for paid repayment of borrowings
	Cash for paid distribution of dividends or profit , payment of interest
	expenses paid Cash relating other to financing activities
Subtotal	cash of outflows from financing activities
	cash Net flows from financing activities	33,972,196.50
.IV	Effects foreign of exchange rate changes cash on cash and equivalents
N	et .V increase cash in cash and equivalents	) 166,633,822.88	) ( 147,998,610.29 (
	Add Balance : cash of cash and equivalents the at beginning the of
	period	194,913,820.28	342,912,430.57
.VI B	alance cash of cash and equivalents the at the of end period	28,279,997.40	194,913,820.28

Equity' Owners in Changes of Statement Consolidated

2014 year the For

Amount current for	period					Unit RMB :
		to Attributable	period Current parent the of owners the Other
Item	instruments equity Other Preference capital Share debts Perpetual shares	Capital Others	:Less comprehensive Treasury reserve income shares	reserves Special reserves Surplus	General Undistributed risk provisions profits	'owners Total interests Minority equity
Closing .I previous of balance Changes :Add policies accounting in error for Correction period previous in Business involving combination common under entities control Other	1,354,054,750.00 year	2,092,858,847.28	40,350,357.85	145,189,526.48	883,722,400.78)	434,606,641.74 ( 3,183,337,722.57
Opening .II year the for balance	1,354,054,750.00	2,092,858,847.28	40,350,357.85	145,189,526.48	883,722,400.78)	434,606,641.74 ( 3,183,337,722.57
Movements .III period current the in Decreases( ("–" in denoted Total) 1( income comprehensive	4,440,810.00	33,071,978.60	(359,473.40) (145,901.32)		672,478,632.35 672,478,632.35	47,610,957.57 757,242,905.12 39,031,866.12 711,364,597.15
2( contributions' Owners) reductions capital and	4,440,810.00	33,071,978.60				11,522,966.00 49,035,754.60
shares Ordinary 1. owners by contributed contributions Capital 2. equity other of holders by instruments 3. based-share of Amount in included payment	4,440,810.00	35,022,063.86				11,522,966.00 50,985,839.86
equity' owners Other 4.		(1,950,085.26)				(1,950,085.26)
Distribution Profit) 3( 1. surplus to Appropriations reserve 2. general to Appropriations provisions risk						2,943,874.55) (2,943,874.55) (
3. owners to Distribution (shareholders or( Other 4. ) 4( equity' owners of Transfer capital to Transfer 1. (capital share or( reserve capital from capital to Transfer 2. (capital share or( reserve surplus from for reserves Surplus 3. losses up making Other 4. reserves Special) 5( during Provided 1. period the 2. period the during Used						2,943,874.55) (2,943,874.55) (
Other) 6(						(213,572.08)
Closing .IV period the for balance	1,358,495,560.00	2,125,930,825.88	39,990,884.45	145,189,526.48	211,243,768.43)	482,217,599.31 ( 3,940,580,627.69

Equity' Owners in Changes of Statement Consolidated

2014 year the For

Amount for previous	period					Unit RMB :
		to Attributable	period Previous parent the of owners the Other
Item	instruments equity Other Preference capital Share debts Perpetual shares	Capital Others	:Less comprehensive Treasury reserve income shares	reserves Special reserves Surplus	General Undistributed risk provisions profits interests Minority	'owners Total equity
Closing .I previous for balance Changes :Add policies accounting in error for Correction period previous in Business involving combination common under entities control Other	1,354,054,750.00 year	2,091,357,299.28	20,832,593.58	145,189,526.48	2,099,392,002.85) 361,165,845.47 (	1,873,208,011.96
Opening .II year the for balance	1,354,054,750.00	2,091,357,299.28	20,832,593.58	145,189,526.48	2,099,392,002.85) 361,165,845.47 (	1,873,208,011.96
Movements .III period current the in Decreases( ("–" in denoted Total) 1( income comprehensive 2( contributions' Owners)		1,501,548.00	19,517,764.27 (3,817,685.27)		1,215,669,602.07 73,440,796.27 1,215,669,602.07 30,124,320.47	1,310,129,710.61 1,241,976,237.27
reductions capital and shares Ordinary 1.		1,501,548.00			67,193,000.00	68,694,548.00
owners by contributed contributions Capital 2. equity other of holders by instruments 3. based-share of Amount included payment equity' owners in Other 4.		1,501,548.00			67,193,000.00	67,193,000.00 1,501,548.00
Distribution Profit) 3( 1. surplus to Appropriations reserve 2. general to Appropriations provisions risk 3. owners to Distribution (shareholders or( Other 4. ) 4( equity' owners of Transfer					23,876,524.20) 23,876,524.20)	(23,876,524.20) ( (23,876,524.20) (
capital to Transfer 1. (capital share or( reserve capital from capital to Transfer 2. (capital share or( reserve surplus from reserves Surplus 3. losses up making for Other 4. reserves Special) 5( during Provided 1. period the 2. period the during Used
Other) 6(			23,335,449.54			23,335,449.54
Closing .IV period the for balance	1,354,054,750.00	2,092,858,847.28	40,350,357.85	145,189,526.48	883,722,400.78) 434,606,641.74 (	3,183,337,722.57

Company Parent the of Equity' Owners in Changes of Statement

2014 year the For

Amount current for	period									Unit	RMB :
			instruments equity Other			period Current :Less	Other comprehensive			Undistributed	'owners Total
Item	capital Share	shares Preference	debts Perpetual	Others	reserve Capital	shares Treasury	income	reserves Special	reserves Surplus	profits	equity
Closing .I year previous in balance Changes :Add policies accounting in in error for Correction period previous Other	1,354,054,750.00				2,223,601,333.16 (6,246,753.49)		29,582,203.03		114,580,901.49	884,000,229.61) (23,335,449.54)	2,808,236,755.04 (
Opening .II year the for balance	1,354,054,750.00				2,217,354,579.67		29,582,203.03		114,580,901.49	907,335,679.15)	2,808,236,755.04 (
Movements .III period current the in Decreases( ("–" in denoted Total) 1( income comprehensive	4,440,810.00				30,822,867.38		(145,901.32) (145,901.32)			964,079,696.22 964,079,696.22	999,197,472.28 963,933,794.90
2( contributions' Owners) reductions capital and	4,440,810.00				30,822,867.38						35,263,677.38
shares Ordinary 1. owners by contributed 2. contributions Capital other of holders by instruments equity	4,440,810.00				32,772,952.64						37,213,762.64
3. based-share of Amount in included payment equity' owners Other 4. Distribution Profit) 3( to Appropriations 1. reserve surplus 2. owners to Distribution (shareholders or( Other 3. ) 4( equity' owners of Transfer capital to Transfer 1. (capital share or( reserve capital from capital to Transfer 2. (capital share or( reserve surplus from for reserves Surplus 3. losses up making Other 4. reserves Special) 5( 1. period the during Provided					(1,950,085.26)						(1,950,085.26)
2. period the during Used Other) 6(
Closing .IV period the for balance	1,358,495,560.00				2,248,177,447.05		29,436,301.71		114,580,901.49	56,744,017.07	3,807,434,227.32

Company Parent the of Equity' Owners in Changes of Statement

2014 year the For

	Amount for previous	period									Unit	RMB :
Item		capital Share	shares Preference	instruments equity Other debts Perpetual	Others	reserve Capital	period Previous :Less shares Treasury	Other comprehensive income	reserves Special	reserves Surplus	Undistributed profits	'owners Total equity
	Closing .I year previous in balance Changes :Add policies accounting in error for Correction period previous in Other	1,354,054,750.00				2,226,146,119.35 (10,293,087.68)		10,293,087.68		114,580,901.49	1,434,599,681.22)	2,260,182,089.62 (
	Opening .II year the for balance	1,354,054,750.00				2,215,853,031.67		10,293,087.68		114,580,901.49	1,434,599,681.22)	2,260,182,089.62 (
	Movements .III period current the in Decreases( ("–" in denoted Total) 1( income comprehensive					1,501,548.00		19,289,115.35 19,289,115.35			527,264,002.07 527,264,002.07	548,054,665.42 546,553,117.42
	2( contributions' Owners) reductions capital and Ordinary 1. contributed shares owners by contributions Capital 2. other of holders by instruments equity 3. based-share of Amount in included payment					1,501,548.00						1,501,548.00
	equity' owners Other 4. Distribution Profit) 3( to Appropriations 1. reserve surplus 2. owners to Distribution (shareholders or( Other 3.					1,501,548.00						1,501,548.00
	) 4( equity' owners of Transfer capital to Transfer 1. (capital share or( reserve capital from capital to Transfer 2. (capital share or( reserve surplus from reserves Surplus 3. losses up making for Other 4. reserves Special) 5( 1. period the during Provided 2. period the during Used Other) 6(
	Closing .IV period the for balance	1,354,054,750.00				2,217,354,579.67		29,582,203.03		114,580,901.49	907,335,679.15)	2,808,236,755.04 (

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

PROFILE COMPANY 1.

formerly ,") Company "the as to referred hereinafter (Limited Company Holdings Electrical Kelon Hisense the After . 1984 in established was) 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( on listed were which ,")Shares A "the (shares domestic 110,000,000 issue to approval the obtained Company 1999. July 13 on Exchange Stock Shenzhen the

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

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 was 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 Hisense Qingdao of shareholding The 2007. March 22 on PRC the of Commerce of Ministry the by approved Since .scheme the after 23.63% to changed was ,Company the of shareholder largest the ,Conditioning-Air through Company the of shareholding the increased successively has Conditioning-Air Hisense Qingdao 2008, 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

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

(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 A additional 362,048,187 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 to 992,006,563.00RMB from changed Company the of capital registered the 2010, June 30 On 2010. June 1,354,054,750.00RMB

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

Option Share First the of period exercise first the to conditions the of satisfaction the upon 2014, May 23 On China of branch Shenzhen the with registration and by approval after and Company the of Scheme Incentive issued shares new 4,440,810 of additional an .,Ltd .Co Clearing & Trust Depository Securities Government .listing for approved were options of exercise the upon

registered the and 1,358,495,560.00 was Company the of shares of number total the 2014, December 31 at As by held Company the of shareholding the ,which of; 1,358,495,560.00RMB was Company the of capital share 45.07%. was Conditioning-Air Hisense Qingdao

home and conditioners-air ,refrigerators of sales and Manufacturing :Company the of operations of Scope appliances

Province Guangdong ,Foshan ,Shunde ,Ronggui ,Road Ronggang 8 .No :Company the of registration of Place

Province Guangdong ,Foshan ,Shunde ,Ronggui ,Road Ronggang 8 .No :headquarters of Address

the at approved were Company the of statements financial the to notes the and statements financial 2014 The .Board the of session eighth the of 2015 in meeting first

to compared as 2 by increased ,Company the into consolidated subsidiaries 35 of total a were there 2014, In .details more for" Statements Financial Consolidated and Combination Business "6 Note See .year last

STATEMENTS FINANCIAL OF PREPARATION OF BASIS 2.

events and transactions actual and assumption concern-going on based prepared are statements financial The Finance of Ministry the (Standard Basic – Enterprises Business for Standards Accounting the to according and ,Finance of Ministry the by issued) Amendment 76 .No Order Finance of Ministry the ,Issue 33 .No Order ,Enterprises Business for Standards Accounting for guidelines application ,standards accounting specific 41 hereinafter (regulations relevant other and Enterprises Business for Standards Accounting of explanation February on revised and issued") Enterprises Business For Standards Accounting "as to referred collectively Securities Issuing Publicly Companies for Regulations Disclosure Information the and ,later or 2006 15, Regulatory Securities China by issued) 2014 Revised (Statements Financial for Provisions General – 15 .No .Commission

s'Company the ,Enterprises Business for Standards Accounting of provisions relevant the to According financial the ,instruments financial certain for Except .basis accrual on conducted is accounting financial impairment for provision the ,impaired is asset an If .basis accounting the as cost historical the take statements .provisions relevant the with accordance in accrued be shall

abovementioned the as save ,exchange stock Kong Hong and Mainland both in listed is Company the As applicable by required as information such disclose also shall statements financial the ,regulations relevant Kong Hong of Exchange Stock The on Securities of Listing the Governing Rules the of provisions disclosure .Ordinance Companies Kong Hong the of requirements disclosure the and Limited

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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 and 2014 December 31 at as state financial the reflect completely and truly and Enterprises Business for In .ended then year the for Company the of information related other and flows cash ,results operating the Information the in contained as requirements disclosure the with comply also statements financial the ,addition Financial for Provisions General – 15 .No Securities Issuing Publicly Companies for Regulations Disclosure statements financial to relating Commission Regulatory Securities China by issued) 2014 Revised (Statements .respects material all in thereto notes and

ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

actual on Based .appliances household of production the in engaged are subsidiaries its and Company The specific of number a formulated subsidiaries its and Company the ,features management and production and transactions related other and recognition revenue for estimates accounting and policies accounting See .Enterprises Business for Standards Accounting of requirements relevant the with accordance in matters estimates and judgments accounting significant on explanation the For .details for" Income) "24(4 note this ."Estimates and Judgments Accounting Significant) "30(4 note to refer please ,management the by made

period Accounting) 1(

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

cycle Business) 2(

realization to production for used assets of purchase from period a represents cycle business normal A business its as period month12- a adopts Company The .Company the by equivalents cash or cash of .liabilities and assets between classification liquidity for basis the and cycle

currency Reporting) 3(

its and Company the which in environment economic primary the in currency the is) RMB (Renminbi reporting their as RMB adopt subsidiaries domestic its and Company The .operate subsidiaries domestic Japanese or Euro ,dollar Kong Hong the adopt Company the of subsidiaries overseas The .currencies economic primary the in currency the on depending currencies reporting respective their as Yen preparing in Company the by adopted currency functional the is RMB .operate they where environment .statements financial these

under not and common under entities involving combinations business for treatment Accounting) 4( control common

due formed subject reporting one which in matter or transaction the to refers combination business A the as classified be can combination business A .entities separate above or two of combination the to .control common under not and control common under combination

control common under entities involving combination Business 1.

of all which in combination business a is control common under combination business A and before both parties or party same the by controlled ultimately are entities combining the under combination business a For .transitory not is control that and ,combination the after combination the on parties other the of control the obtains that party the ,control common .acquirees the are combination business the in involving parties other and ,acquirer the is date the of control the obtains effectively acquirer the which on date the is date combination The .acquirees

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(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

under not and common under entities involving combinations business for treatment Accounting) 4( (continued(control common

(continued (control common under entities involving combination Business 1.

be shall combination business a in acquirer the by obtained are that liabilities and Assets The .acquirees the by recorded as date combination the at amount carrying their at measured of amount carrying the and obtained assets net the of amount carrying the between difference the of value par aggregate the or (combination the for acquirer the by paid consideration the .(premium capital or (reserve capital under premium share to adjusted be shall) shares issued the absorb to sufficient not is) premium capital or (reserve capital under premium share the If .earnings retained against adjusted be shall excess any ,difference

charged are acquirer the by combination business the to attributable directly are that Expenses .incurred are they which in period the for loss and profit the to

control common under not entities involving combination Business 2.

of all which in combination business a is control common under not combination business A before both parties or party same the by controlled ultimately not are entities combining the party the ,control common under not combination business a For .combination the after and parties other; acquirer the is date acquisition the on parties other the of control the obtains that on date the is date acquisition The .acquirees the are combination business the in involving .acquirees the of control obtains effectively acquirer the which

the is combination business of cost the ,control common under not combination business a For the by issued securities equity and ,undertaken or incurred liabilities ,paid assets of value fair are that Expenses .date acquisition the at acquirees the of control the obtaining for acquirer fees consultancy ,fees services legal ,fees audit as such combination business the to attributable the in expensed are acquirer as Company the by incurred expenses administration other and securities equity of fees Transaction .incurred are they which in period the for loss or profit are combination business a for consideration as acquirer the by issued securities debt or Contingent .securities debt or securities equity of amount recognised initially the in included acquisition the on value fair its at cost combination the as recorded is involved consideration the on existing circumstances the to relation in evidence further or new any Should .date adjust to necessary it making ,date acquisition the after months 12 within arise date acquisition be shall combination business the from arising goodwill the ,consideration contingent the by obtained assets net identifiable and incurred combination of cost The .accordingly adjusted Where .date acquisition the on value fair at measured are combination business a in acquirer the s'acquiree the of value fair the in interest s'acquirer the exceeds combination the of cost the where; goodwill as recognised is difference the ,date acquisition the on assets net identifiable s'acquiree the of value fair the in interest s'acquirer the than lower is combination of cost the for loss or profit in recognised is difference the ,date acquisition the on assets net identifiable liabilities ,assets identifiable of value fair the for measurement of review a after year current the .cost combination the and acquiree the of liabilities contingent and

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(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

under not and common under entities involving combinations business for treatment Accounting) 4( (continued(control common

(continued (control common under not entities involving combination Business 2.

not was which ,acquiree the from acquired difference temporary deductible the to relation In date the at criteria recognition the of fulfillment-non to due assets tax deferred as recognised the after months 12 within obtained is that information further or new if ,acquisition the of and ,existed already date acquisition the at conditions related that indicates date acquisition of difference temporary deductible the by brought benefits economic the of realization the that be shall assets tax deferred relevant the ,expected be can date acquisition the on acquiree the less is goodwill of amount the When .accordingly deducted be shall goodwill and recognised the in recognised be shall difference the ,recognised be shall that assets tax deferred the than relation in assets tax deferred ,circumstances above the for Except .period the for loss or profit .period the for loss or profit the in recognised are combination business to

in achieved is that control common under not entities involving combination business a For as treated be shall combination business the whether determine shall Company the ,stages in contained as standards determination the with accordance in" transactions of bundle a" Business for Standards Accounting on 5 Interpretation of Publishment the on Circular "the of 51 Section and) 19 .No] 2012 [Kuai Cai (Finance of Ministry the by issued" Enterprises Refer" (Statements Financial Consolidated – 33 Enterprises Business for Standards Accounting" the ,"transactions of bundle a "as treated is combination business the Where .)ii)5(4 note to and paragraphs previous the with accordance in for accounted be shall combination business within fall not does combination business the where"; investment equity term Long) "12(4 note consolidated the and s'Company the in combination business the ,"transactions of bundle a" :follows as for accounted be shall statements financial

of sum the be shall investment the of cost initial the ,statements financial s'Company the In date acquisition the to prior acquiree the in held investment equity of amount carrying the Other .date acquisition the at acquiree the to made investment additional of amount the and acquisition the to prior acquiree the in held interest equity the to relating income comprehensive basis same the with accordance in for accounted ,investment the of disposal upon ,be shall date except ,is that ,liabilities or assets relevant of disposing directly in adopts acquiree the that as liabilities or assets net of remeasurement from arising changes the in interest s'acquirer the for with accordance in for accounted is that acquiree the of plan benefit defined the to relating the for income investment to transferred be shall balance the ,accounting of method equity the .year current

the to prior acquiree the in held interest equity the ,statements financial consolidated the In difference the; date acquisition the at value fair its to according measured-re is date acquisition the for income investment as recognised is amount carrying the and value fair the between acquiree the in held interest equity the to relating income comprehensive Other .period current that as basis same the with accordance in for accounted be shall date acquisition the to prior the for except ,is that ,liabilities or assets relevant of disposing directly in adopts acquiree the relating liabilities or assets net of remeasurement from arising changes the in interest s'acquirer equity the with accordance in for accounted is that acquiree the of plan benefit defined the to period the for income investment to transferred be shall balance the ,accounting of method .falls date acquisition the which within

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(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

statements financial consolidated of Preparation) 5(

consolidation of scope of recognition the for Criteria 1.

refers Control .control of concept the on based determined be shall consolidation of scope The reward of rights or exposure risk the to entitlement or of share ,investee the over power the to power its using by returns such of amount the affect to ability the and ,returns variable of of statements financial the comprise statements financial consolidated The .investee the over the by controlled entities those as defined are which ,subsidiaries its of all and Company the .Company

elements the in change a to leads which arises circumstances and facts the in change any Once .assessment an conduct will Company the ,control of definition the in involved

statements financial consolidated of Preparation 2.

and assets net their obtains Company the which on date the from consolidated are Subsidiaries such when date the from deconsolidated are and ,decisions operating their over control actual to prior flows cash and results operating the ,disposed being subsidiaries For .ceases control consolidated and statement income consolidated the in included duly are disposal of date the the of balances opening the ,period the during disposed subsidiaries for; statement flow cash business a from acquired subsidiaries For .restated be not would sheet balance consolidated to subsequent flows cash and results operating their ,control common under not combination cash consolidated and statement income consolidated the in included are date acquisition the financial consolidated the in figures comparative and balances opening the and ,statement flow under combination business a from acquired subsidiaries For .restated be not would statements of commencement of date the from flows cash and results operating their ,control common the in included are combination of date the to occurred combination the which in period the comparative the and ,statement flow cash consolidated and statement income consolidated .restated be would statements financial consolidated the in figures

the or policies accounting the where ,statements financial consolidated the preparing In financial the ,subsidiaries and Company the between inconsistent are periods accounting and policies accounting the with accordance in adjusted are subsidiaries of statements not combination business a from acquired subsidiaries For .Company the of period accounting the of value fair the on based adjusted are statements financial their ,control common under .date acquisition the at assets net identifiable

in eliminated are profits unrealised and transactions ,balances group-inter significant All .statements financial consolidated the preparing

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(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(statements financial consolidated of Preparation) 5(

(continued (statements financial consolidated of Preparation 2.

or investment equity of portion a of disposal to due lost is subsidiary a over control the When the when date the on value fair the at measured-re is interest equity remaining the ,otherwise disposal from received consideration the of sum the between difference The .ceased control the of assets net the and ,interest equity remaining the of value fair the and interest equity of based calculated as date acquisition the since Company the to attributable subsidiary former investment the as recognised is ,subsidiary that in percentage shareholding original its on in incomes comprehensive Other .occurred control of loss the when period the for income accounted ,control of loss the upon ,be shall subsidiary the of investment equity the to relation of disposing directly in adopts acquiree the that as basis same the with accordance in for of remeasurement from arising changes the for except ,is that ,liabilities or assets relevant balance the ,subsidiary that of plan benefit defined the to relating liabilities or assets net of measurement Subsequent .year current the for income investment to transferred be shall standards accounting relevant with accordance in be shall interests equity remaining the "Investments Equity term-Long — 2 Enterprises Business for Standards Accounting "as such of Measurement and Recognition — 22 Enterprises Business for Standards Accounting "or note or" investment equity term Long) "12(4 note in detailed are which ,"Instruments Financial ."instrument Financial) "9(4

equity of disposal to relation in transactions of series a whether determine shall Company The of bundle a as treated be should stages in subsidiary a over control of loss even or in investment relation in transactions the of conditions and terms and effects economic the When .transactions of series the ,situations following the of more or one met investment equity of disposal the to transactions these) i (:transactions of bundle a as for accounted be normally shall transactions individual each of consequences mutual the considering after or simultaneously into entered are in deal a achieve to order in whole a as considered be to need transactions these) ii; (transaction of occurrence the on depends transaction individual an of occurrence the) iii; (sense commercial transaction individual an of result The) iv; (series the in) s(transaction individual more or one transactions other the account into taking after economical be would it but ,economical not is the of each ,transactions of bundle a as treated not are transactions the When .series the in equity term long of disposal portion "the as for accounted be shall transactions individual ((iv(ii)12(4 note in detailed" (control of loss to lead not would which subsidiary a in investment "otherwise or subsidiary a in investment equity of disposal portion to due control of loss "the or to relation in transactions the When .be may case the as ,)paragraph previous the in detailed( bundle a as treated are subsidiary a over control of loss even or in investment equity of disposal relation in transaction one as for accounted be shall transactions the of each ,transactions of the between difference the ,however; control of loss to leading subsidiary the of disposal to disposed subsidiary the of assets net of share the and disposal the from received consideration comprehensive other as recognised be shall control of loss before transaction individual each in period the for loss or profit as reclassified and ,statements financial consolidated the in income .lost is control when

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(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

operations joint for treatment accounting and arrangements joint of Classification) 6(

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the with accordance in method equity the using for accounted is ventures joint in investment The equity using by investment equity term-Long) "ii(ii)12(4 note in out set as policies accounting ."method

solely assumed obligations and held assets the recognise Company the ,operation joint a to party a As proportion in Company the by jointly assumed obligations and held assets the and ,Company the by joint the of outputs of share the of sales from revenue the recognise; Company the of share the to operation joint the by outputs of sales from revenue of share the recognise; Company the of operation expenses the recognise and; Company by incurred solely expenses the recognise; Company the of .Company the of share the to proportion in operation joint the by incurred

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equivalents cash and cash of recognition the for Criteria) 7(

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) 8(

transactions currency foreign of Translation 1.

currency functional the into translated ,recognition initial on ,are transactions currency Foreign of price middle the .e.i ,transactions the of dates the at prevailing rates exchange spot the at the and general in date that on China of Bank s'People the by published rate exchange RMB involves or exchange currency of business a on carries Company the when except ,below same .used be would which rates exchange actual the at ,transactions exchange currency in

currencies foreign in items monetary-non and items monetary of Translation 2.

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(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

currency foreign in statements financial of translation and transactions currency Foreign) 8( (continued(

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the ,operations foreign involving statements financial consolidated preparing of purpose the For foreign of translation to relation in rates exchange in changes from arising differences exchange ,operation foreign the in investment net a constitute effectively which items monetary currency the in ,operation foreign the of disposal upon or ,income comprehensive other in recognized are .period the for loss or profit

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currency foreign in statements financial of Translation 3.

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(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

currency foreign in statements financial of translation and transactions currency Foreign) 8( (continued(

(continued (currency foreign in statements financial of Translation 3.

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instruments Financial) 9(

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liabilities financial and assets financial for value fair of Determination 1.

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assets financial of measurement and recognition ,Classification 2.

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investments maturity-to-Held) ii(

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receivables and Loans) iii(

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assets financial sale-for-Available) iv(

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loss or Gain .value fair at measured subsequently are assets financial sale-for-Available except ,income comprehensive other as recognised are value fair in changes from arising currency foreign of translation from arising differences exchange and loss impairment for through for accounted are which cost amortised to relation in assets financial monetary on out transferred be will assets financial The .period current the for loss or profit ,However .period current the for loss or profit through for accounted and derecognition which of value fair the and market active an in quoted not is that investment equity must and to linked are that assets financial derivative and ,reliably measured be cannot .cost at measured subsequently are instrument equity such of delivery by settled be

held are assets financial sale-for-available which in period the during received Interests .income investment as recognised are investee the by declared dividends cash the and

(receivables than other (assets financial of Impairment 3.

the ,period current the for loss or profit through value fair at assets financial for Except if and ,date sheet balance each at assets financial other of amount carrying the assesses Group the for made are provisions ,impaired are assets financial the that evidence objective is there .impairment

investments maturity-to-held of Impairment) i(

written is cost amortised or cost at measured assets financial the of amount carrying The down-written the and flow cash future estimated the of value present the to down .period current the for loss or profit the in loss impairment the as recognised is amount evidence objective is there if reversed is loss impairment recognised originally The linked be can recovery the and recovered been has assets financial the of value the that carrying The .recognised was loss impairment the after occurring event an to objectively exceed not will loss impairment the of reversal the upon assets financial the of amount loss impairment no if as date reversal the on assets financial the of cost amortised the .made been has provision

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (instruments Financial) 9(

(continued) (receivables than other (assets financial of Impairment 3.

assets financial sale-for-available of Impairment) ii(

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

the ,instrument debt sale-for-available an on recognized was loss impairment an after If increase the and period subsequent a in increased has instrument debt the of value fair ,recognized was loss impairment the after occurring event an to related objectively be can for loss or profit in recognized and reversed is loss impairment recognized previously the after occurs value fair in increase any if ,loss or profit in not ,equity in reversed is salefor-available instrument equity an on recognized loss impairment The .period current the .impairment the

assets financial of transfer of measurement and recognition for Basis 4.

(1) :satisfied is conditions following the of any if recognised-de be will asset financial The The) 2; (terminated is asset financial the of flow cash the receive to right contractual The ownership of rewards and risks the of all substantially and transferred been has asset financial been has asset financial The) 3; (transferee the to transferred been have asset financial the of neither has it although asset financial the over control the waived has entity the and transferred financial the of ownership of rewards and risks the of all substantially reserved nor transferred .asset

rewards and risks the of all substantially reserved nor transferred neither has entity the Where the to ,asset financial the over control the waived not and asset financial the of ownership of the recognises entity the ,transferred asset financial the in involvement continuous its of extent extent The .accordingly liability relevant the recognises ,meanwhile and asset financial relevant in changes to due exposes entity the which to risk of level the is involvement continuous the of .asset financial such of value the

,asset financial the of transfer overall upon satisfied are recognition-de of conditions the Where the of sum the and asset financial transferred the of amount carrying the between difference the previously value fair in changes accumulated the and transfer the from received consideration current the for loss or profit the in recognised is income comprehensive other in recognised .period

,asset financial the of transfer partial upon satisfied are recognition-de of conditions the Where derecognised the between allocated is asset financial transferred the of amount carrying the the between difference the and ,value fair corresponding the at portion derecognised-non and value fair in changes accumulated the and transfer the from received consideration the of sum recognised-de the to allocated be to income comprehensive other in recognised previously loss or profit the in recognised is amount carrying allocated mentioned above the and portion .period current the for

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (instruments Financial) 9(

(continued (assets financial of transfer of measurement and recognition for Basis 4.

the transfers or recourse of right the with asset financial the of disposes Company the Where risks the all substantially whether that ascertained be shall it ,endorsement by asset financial all substantially Where .transferred been have asset financial the of ownership of rewards and ,transferee the to transferred been have asset financial the of ownership of rewards and risks the ownership of rewards and risks the all substantially where; recognised-de are asset financial the where and; recognised-de not are asset financial the ,retained been have asset financial the of neither been have asset financial the of ownership of rewards and risks the all substantially the over control the retains entity the whether determined be shall it ,retained nor transferred .policies mentioned above the with accordance in for accounted be shall asset the and asset

liabilities financial of measurement and Classification 5.

value fair at liabilities financial into classified are liabilities financial ,recognition initial Upon liabilities financial ,recognition initial Upon .liabilities financial other and loss or profit through the ,loss or profit through value fair at liabilities financial the For .value fair at measured are for and; period current the for loss or profit in recognised directly are costs transaction relevant recognised initially the in included are costs transaction relevant the ,liabilities financial other .amount

loss or profit through value fair at liabilities Financial) i(

be to and trading for held as classified be to liabilities financial the for conditions The are recognition initial upon loss or profit through value fair at measured be to designated be to and trading for held as classified be to assets financial the for those as same the .recognition initial upon loss or profit through value fair at measured be to designated

at measured subsequently are loss or profit through value fair at liabilities financial The dividend the and value fair in change the from arising losses or gains The .value fair the loss or profit the to charged are liabilities financial the to related expenses interest and .period current the for

liabilities financial Other) ii(

the of delivery through settled be to and to linked liabilities financial derivative The which of value fair the and market active an in quoted not are that instruments equity .cost at measured subsequently are instruments equity such measured reliably be cannot effective the using cost amortised at measured subsequently are liabilities financial Other amortisation or recognition-de from arising losses or gains the and method rate interest .period current the for loss or profit in recognised are

contracts guarantee Financial) iii(

at as designated liabilities financial the than other contracts guarantee financial The subsequently and value fair at recognised initially are loss or profit through value fair for Standards Accounting the with accordance in determined amount the at measured recognised initially the of balance the or Contingencies – 13 Enterprises Business Accounting the with accordance in determined amortisation accumulated the less amount .higher the is whichever ,Income – 14 Enterprises Business for Standards

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (instruments Financial) 9(

liabilities financial of recognition-De 6.

the until and unless part in or whole in recognised-de be not may liabilities financial The the Where .part in or whole in discharged are liabilities financial the of obligations present financial existing the replace to creditor a with agreement an concludes) debtor the (Company liabilities financial new for terms contractual the and liabilities financial new the with liabilities are liabilities financial existing the ,liabilities financial existing as same the not materially are .recognised are liabilities financial new the and recognised-de

between difference the ,part in or whole in recognised-de are liabilities financial the Where loss or profit in recognised is) assumed liabilities financial new or transferred assets monetarynon including (paid consideration the and portion recognised-de the of amount carrying the .period current the for

derivatives embedded and Derivatives 7.

are contracts derivative the when date the at value fair at measured initially are Derivatives the from arising loss or gain The .value fair at measured-re subsequently are and into entered unless ,period current the for loss or profit in recognised is derivative a of value fair in change the case which in ,instrument hedging a as effective highly and designated is derivative the in relationship hedge the of nature the on depends loss or profit in recognition the of timing .policies accounting hedging with accordance

instrument hybrid the where ,instrument hybrid the from separated is derivative embedded An ,loss or profit through value fair at liability financial or asset financial a as designated not is embedded the of risks and characteristics economic the if derivative alone-stand a as treated and with instrument separate a and ,contract host the of those to related closely not are derivative the If .derivative a of definition the meet would derivative embedded the as terms same the a at or acquisition at either separately derivative embedded the measure to unable is Group asset financial a as instrument hybrid entire the designate will it ,date sheet balance subsequent .loss or profit through value fair at liability financial or

liabilities financial and assets financial Offsetting 8.

financial and assets financial recognised the offset to right legal a has Company the Where assets financial the realise or net to plans and present at right this enforce may and liabilities financial the between offset the upon balance remaining the ,liabilities financial the settle and financial the ,Otherwise .sheet balance the in presented is liabilities financial the and assets offset not do and sheet balance the in presented separately are liabilities financial the and assets .other each against

instruments Equity 9.

equities remaining the of ownership the proves which contract a to refers instrument equity An change the as for accounted is instruments equity of cancellation or sale ,repurchase ,)financingre including (issuance The .liabilities all of deduction after Company the of assets net in .instruments equity of value fair in change the recognise not does Company The .equity in .equity to charged are transactions equity to related costs Transaction

equity of holders to Company the by made) dividends excluding (distributions Various of value fair in change the recognise not does Company The .equity' owners reduce instruments .instruments equity

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

receivable Accounts) 10(

:provision separate to subject and significant individually are that receivable Accounts 1.

receivables significant individually of determination for criteria or basis The) i(

.receivables Greencool the for except ,receivables total the of above or 10% for Accounts

receivables significant individually in debt bad for provision of Method) ii(

Where .test impairment separate to subject are receivables significant Individually the of value present the of balance the ,impairment of evidence objective an is there and loss impairment as treated be shall amount carrying the than less flows cash future to according impairment no is there Where .debts bad for provision as for accounted of group a into combined be shall receivable accounts the ,test impairment separate the impairment further a to subject and characteristics risk credit similar with recievables .collectively test

:provision collective to subject Receivables 2.

follows as is groups of determination for Basis

• characteristics ageing on based receivable accounts of group A 1 Group
• .receivables Greencool of group A 2 Group

groups by debts bad for provision of Method

• .method analysis ageing Using 1 Group
• value present the of balance the where ,test impairment individual an Conducting 2 Group than less receivables the from derived be to expected flows cash future the of as for accounted and loss impairment as treated be shall amount carrying the .debts bad for provision

method analysis age using made is debts bad for provision which for receivables 1, Group For :follows as are

Ageing	of Ratio provision bad for (%) 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

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (receivable Accounts) 10(

:provision separate to subject receivables insignificant Individually 3.

Reason for individual provision	Receivables which are individually insignificant one over year .above or
Method for provision for debts bad	Where there an is objective evidence of impairment , receivables be shall separated from group the they to belong and subject an to individual The .test balance the of present of value future the cash flows expected to derived be from the receivables less the than carrying amount shall treated be as impairment and loss accounted as for provision bad for debts

Inventories) 11(

inventories of Classification 1.

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

inventories of Measurement 2.

,cost purchase of consists inventory an of Cost .cost actual at measured initially are Inventories .cost other and cost processing

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

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

value in declines for provision of method and value realizable net of determination for Basis 3. inventories of

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

price selling estimated the on based determined is materials raw of value realizable net The and completion to up incurred be to estimated costs the less ,manufactured goods finished of ;business of course ordinary the in 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 of amounts the exceed held inventories of amounts the if; price contract the on based determined determined is portion excess the of value realizable net the ,contract the in specified order sales .price market general the on based

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued(Inventories) 11(

value in declines for provision of method and value realizable net of determination for Basis 3. (continued (inventories of

adjusts or records and ,date sheet balance each at checkup inventory general takes Company The for provision The .value realizable net or cost of lower the at inventories on loss impairment a 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 of sales and production the to relevant inventories for; category the on based made be shall measure to difficult and purpose or use similar or same with region same the in products .basis aggregated an on made be shall inventories on loss impairment for provision ,separately down-write the ,disappear inventories of down-write previous the causing factors the case In reverse the and made previously impairment of provision the to reversed be shall amount .period the for loss or profit the to charged be shall amount

.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

investments equity term-Long) 12(

which in investments equity term-long to refer section this under investments equity term-Long equity term-Long .investee the over influence significant or control joint ,control has Company the as for accounted is Group the of influence significant or control joint or control without investment .period the for loss or profit through value fair at assets financial or assets financial sale-for-available ."instruments Financial) "9(4 note to refer please ,policy accounting its on details For

the ,arrangement an over control of sharing agreed contractually s'Company the is control Joint .control the share who parties from agreement unanimous by decided be must which under activities financial for making-decision the in participate to Company the of power the is influence Significant policies such of formulation the control joint or control to not but ,investee an of policies operating and .parties other with together

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (investments equity term-Long) 12(

cost investment of Determination 1.

entities involving combination business a through acquired investment equity term-long a For amount carrying the at recognised be shall cost investment initial the ,control common under statements financial consolidated the in equity s'party combined the of share s'Company the of initial the between difference The .combination of date the on party controlling ultimate the of and transferred assets monetary-non ,paid cash the and investment equity term-long the of cost the Where .reserve capital the against offset shall assumed debts the of amount carrying the the that case In .adjusted be shall earnings retained the ,offset to insufficient is reserve capital initial the ,securities equity issuing by satisfied is combination business the of consideration of amount carrying the at recognised be shall investment equity term-long the of cost investment of statements financial consolidated the in equity s'party combined the of share s'Company the shares the of value face total the With .combination of date the on party controlling ultimate the investment equity term-long the of cost initial the between difference the ,capital share as issued .reserve capital the against offset to used be shall issued shares the of value face total and For .adjusted be shall earnings retained the ,offset to insufficient is reserve capital the Where interests equity acquiring by control common under entities involving combination business a shall transactions the ,transactions of series a in control common under party combined the in be shall transactions the of each ,"transactions of bundle a "of case in :separately treated be of share s'Company the of amount carrying the at recognised be shall investment equity termlong the of cost investment initial the ,otherwise; control of acquisition an as for accounted controlling ultimate the of statements financial consolidated the in equity s'party combined the equity term-long the of cost initial the between difference The .combination of date the on party before investment equity term-long the of amount carrying the of sum the and investment of acquisition further for paid consideration additional the of value book the and combination capital the Where .reserve capital the against offset shall combination of date the on shares comprehensive Other .adjusted be shall earnings retained the ,offset to insufficient is reserve using by combination of date the to prior held investment equity the for recognised income financial the in for accounted be not will assets financial sale-for-available for or method equity .statements

entities involving combination business a through acquired investment equity term-long a For investment equity term-long the of cost investment initial the ,control common under not combination of Cost .acquisition of date the on combination of cost the at recognised be shall equity and assumed or incurred liabilities ,paid assets of value fair aggregate the includes under not entities involving combination business a For .acquirer the by issued securities the ,transactions of series a in acquiree the in equity the acquiring by control common the of each ,"transactions of bundle a "of case in :separately treated be shall transactions investment initial the ,otherwise; control of acquisition an as for accounted be shall transactions sum the at method cost the using for accounted be shall investment equity term-long the of cost additional the and acquiree the in held previously investment equity of amount carrying the of the using by for accounted is held previously investment equity the Where .cost investment Where .for accounted be not will income comprehensive other corresponding the ,method equity the ,asset financial sale-for-available an as classified is held previously investment equity the in changes accumulated the as well as ,amount carrying and value fair its between difference the in recognised be shall income comprehensive other the in included previously value fair .period current the for loss or profit

such combination business a for acquirer the or party combining the by incurred fees Agent administration related other and ,fees consultation and valuation and ,service legal ,audit as .incurred expenses such when period current the in loss or profit to charged are expenses

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (investments equity term-Long) 12(

(continued (cost investment of Determination 1.

shall combination business a of means by than other acquired investment equity term-long The paid actually price purchase the ,others among ,on based determined is ,investment equity termlong the of acquisition of means the upon depending ,cost Such .cost at measured initially be agreed the ,Company the by issued securities equity of value fair the ,cash in Company the by the of amount carrying original or value fair ,agreements or contracts investment the by value term-long the of value fair and ,transaction exchange asset monetary-non a in exchanged asset attributable directly are that expenses necessary other and taxes ,costs The .investment equity .cost investment the in included also are investment equity term-long the of acquisition the to influence significant a exercise to ability an to rise gives investment equity additional an Where term-long the of cost the ,control the obtaining without but investee the over control joint or held previously investment equity the of value fair of sum the be shall investment equity Recognition – 22 Enterprises Business for Standard Accounting "with accordance in determined .cost investment additional and" Instruments Financial of Measurement and

loss or profit of recognition and measurement Subsequent 2.

(venture joint a constituting that excluding (control joint with investment equity term-long A a and ,method equity the using by for accounted is investee the on influence significant or over s'Company the in for accounted is investee the over control with investment equity term-long .method cost the using by statements financial

method cost the using by for accounted investments equity term-Long) i(

initial its at measured is investment equity term-long a ,method cost the Under case in adjusted be shall investment equity term-long the of cost The .cost investment on paid consideration actual the for Except .return or investment additional any of distributed yet not but declared profits or dividends cash or investment the of acquisition is period the for investment on gain the ,consideration the in included are which .investee the by declared profits or dividends cash of share s'Company the at recognised

method equity the using by for accounted investments equity term-Long) ii(

equity term-long a of cost investment initial the where ,method equity the Under net identifiable s'investee the of value fair of share s'Company the exceeds investment .cost investment initial the to made be shall adjustment no ,date acquisition the at assets the of value fair of share s'Company the than less is cost investment initial the Where charged be shall difference the ,date acquisition the at assets net identifiable s'investee investment equity term long the of cost the and ,period current the for loss or profit to .accordingly adjusted be shall

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (investments equity term-Long) 12(

(continued (loss or profit of recognition and measurement Subsequent 2.

(continued (method equity the using by for accounted investments equity term-Long) ii(

shall income comprehensive other and investment on gain the ,method equity the Under comprehensive other and loss or profit net the of share s'Company the at recognised be term-long the of amount carrying and ,respectively ,investee the by realised income equity term-long the of amount Carrying .accordingly adjusted be shall investment equity dividend cash or profit the of share s'Company the by reduced be shall investment investee the of equity' owners in changes the of respect In .investee the by declared the ,distribution profit and income comprehensive other ,loss or profit net in than other in included and adjusted be shall investment equity term-long the of amount carrying or profit net s'investee the of share its recognises Company The .reserves capital the ,acquisition of time the at assets identifiable s'investee the of value fair on based loss between inconsistency any of case the In .thereto adjustments appropriate making after the by and investee the by adopted periods accounting and policies accounting the accordance in adjusted be shall investee the of statements financial the ,Company gain the and ,Company the of periods accounting and policies accounting the with In .accordingly recognised be shall income comprehensive other and investment on ventures joint and associates its and Company the between transactions the of respect of share the ,business the of part not are of disposed or invested assets the which in portion the by offset be shall transactions group-inter from arising loss or gain unrealised recognised be shall investment on loss or gain the and ,Company the to attributable between transactions group-inter from arising loss unrealised any ,However .accordingly loss impairment is loss the that extent the to offset not is investee an and Company the associates or ventures joint its to invests Company the Where .transferred assets the of equity term-long a of acquisition the to rise giving ,business a of part forming asset an of cost investment initial the ,control obtaining without investor the by investment the of value fair at recognised be shall investment equity term-long additional the amount carrying and cost investment initial between difference The .invested business .period current the for loss or profit in included fully be will invested business the of associates its to business a of part forming asset an of disposes Company the Where carrying the and received consideration the between difference the ,ventures joint or .period current the for loss or profit in included fully be shall business the of amount forming asset an ventures joint or associates its from acquires Company the Where for accounted be shall transaction the to related loss or profit the ,business a of part 20 Enterprises Business for Standards Accounting "with accordance in recognised and ."Combination Business"

that extent the to recognised be shall investee the of loss net of share s'Company The that equity term-long any and investment equity term-long the of amount carrying the down written are investee the in investment net s'investor the of part forms substantially ,investee the of loss the to obligations additional assume to has Company the If .zero to and assumed obligation estimated the for recognised be shall liabilities estimated the makes investee the Where .period the for loss investment as loss or profit the to charged profits the of share its recognise-re shall Company the ,periods subsequent in profits .losses unrecognised of share the against off setting after

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (investments equity term-Long) 12(

(continued (loss or profit of recognition and measurement Subsequent 2.

interests minority of Acquisition) iii(

capital the adjusts Company the ,statements financial consolidated the preparing When on based earnings retained the adjusts ,insufficient is reserve capital the if ,and reserve acquisition on arising investment equity term-long additional the between difference the subsidiary the of assets net the in share s'Company the and interests minority of additional the to proportion in) date combination or (date acquisition the from accrued .shareholdings

investment equity term-long of Disposal) iv(

term-long the of part disposes parent the if ,statements financial consolidated the In the between difference the ,control its losing without subsidiary the in investment equity attributable subsidiary the of assets net the in share s'Company the and price disposal 'shareholders the in recognised is investment equity term-long the of disposal the to subsidiary the in investment equity term-long the of part disposes parent the if; equity shall treatment accounting the ,subsidiary the over control its of loss the in resulting consolidated of Preparation "ii)5(4 note in out set as policies the with accordance in be ."statements financial

difference the ,investment equity term-long a of disposal the upon ,cases other In in recognised is received price the and investment the of amount carrying the between .period current the for loss or profit the

where method equity the using for accounted is that investment equity term-long a For equity the using for accounted be to continues disposal after equity remaining the s'shareholder in included previously income comprehensive other of portion the ,method disposes directly investee the as basis same the with accordance in treated be shall equity equity' owners The .disposal of time the at basis rata pro on liability or asset relevant of ,loss or profit net than other investee the of equity' owners in change the for recognised loss or profit to transferred be shall distribution profit and income comprehensive other .basis rata pro on period current the for

the where method cost the using for accounted investment equity term-long a For other ,method cost using for accounted be to continues disposal after equity remaining the with accordance in or method equity the using recognised income comprehensive acquisition the to prior instruments financial of measurement and recognition for standard the as basis same the with accordance in treated be shall investee the over control of loss or profit to transferred and ,liability or asset relevant of disposes directly investee in recognised equity' owners in change The .basis rata pro on period current the for other ,loss or profit net than other method equity the using by investee the of assets net the for loss or profit to transferred be shall distribution profit and income comprehensive .basis rata pro on period current

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (investments equity term-Long) 12(

(continued (loss or profit of recognition and measurement Subsequent 2.

(continued (investment equity term-long of Disposal) iv(

partial upon investee the over lost is control if ,statements financial separate preparing In to ability an or control joint with equity remaining the ,investment equity of disposal for accounted be shall disposal after investee the over influence significant a impose using for accounted been has it if as adjusted be shall and ,method equity the using control joint without equity remaining The .acquired was it since method equity the shall disposal after investee the over influence significant a impose to ability an or financial of measurement and recognition for standard the on based for accounted be date the at as amount carrying and value fair its between difference the and ,instruments respect In .period current the for loss or profit in included be shall control of loss of accordance in or method equity the using recognised income comprehensive other of the to prior instruments financial of measurement and recognition for standard the with the with accordance in for accounted be shall it ,investee the over control of acquisition control the when liability or asset relevant of disposes directly investee the as basis same using by investee the of assets net in recognised equity' owners in change The .lost is profit and income comprehensive other ,loss or profit net than other method equity the when time the at period current the for loss or profit to transferred be shall distribution accounted is disposal after equity remaining the Where .lost is investee over control the equity' owners other and income comprehensive other ,method equity the using for disposal after equity remaining the Where .basis rata pro on forward carried be shall of measurement and recognition for standard the with accordance in for accounted is be shall equity' owners other and income comprehensive other ,instruments financial .forward carried fully

disposal partial upon lost is investee the over influence significant or control joint the If in for accounted be shall disposal after equity remaining the ,investment equity of .instruments financial of measurement and recognition for standard the with accordance of loss of date the at as amount carrying and value fair its between difference The current the for loss or profit in included be shall influence significant or control joint investment equity the for previously recognised income comprehensive other For .period as basis same the with accordance in for accounted be shall it ,method equity using equity the when time the at liability or asset relevant of disposes directly investee the in change the from arising recognised equity' owners The .used be to ceased was method income comprehensive other ,loss or profit net than other investee the of equity' owners the at period current the for loss or profit to transferred be shall distribution profit and .used be to ceased was method equity the when time

series a in subsidiary a in investment equity its of disposes Company the Where of bundle a "form transactions such and ,lost is control the until transactions of investment equity of disposal a as for accounted be shall transaction each ,"transactions consideration the between difference The .control of loss a in resulting subsidiary the of investment equity term-long the of amount carrying the and transaction each for initially be shall control of loss to prior disposed interests equity the to attributable profit to transferred ,control of loss upon and ,income comprehensive other as recognised .place takes control of loss the when period the for loss or

impairment for provision and test Impairment 3.

Company the ,associates and ventures joint ,subsidiaries in investments equity term-long For .(20)4 note in policies the with accordance in impairment for provides

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

properties Investment) 13(

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

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

cost using properties investment of impairment for provision of recognition for) 20(4 note see Please .measurement subsequent for model

assets Fixed) 14(

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) i( and; Company the into
• .measured reliably be can asset fixed the of cost The) ii(

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 provided are Depreciations .life are that lands and ,use in still are and depreciated fully are that assets fixed for except (salefor-held assets current-non as classified or derecognised are assets fixed the when terminated rates depreciation annual the ,made is provision impairment no When .)separately accounted and life useful estimated ,category asset by determined are which assets fixed different for :follows as are value residual estimated

		of Rate residual	Annual
Category	Useful (year (life	(%) value	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 test Impairment 3.

the of assets fixed of impairment for provision of recognition for) 20(4 note see Please .Company

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

progress in Construction) 15(

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 Timing 2.

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

progress in construction on loss impairment for Provision 3.

in construction on impairment for provision of recognition the for) 20(4 note see Please .progress

costs Borrowing) 16(

costs borrowing of capitalization of recognition for 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 for activities production 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 production or construction and acquisition shall costs borrowing Other .assets relevant of costs the of part as recorded and capitalized be amount actual the of basis the on period the for loss or profit in expenses as recognized be .incurred are they when time the at incurred

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

• the include shall which ,incurred been already has asset the for expenditure The) i( paid debts bearing interest or assets cash-non of transfer ,cash of means by expenses for eligible asset the of activities production or construction and acquisition the for ;capitalization
• ;incurred been have costs borrowing The) ii(
• asset the prepare to necessary activities production or construction and acquisition The) iii( .commenced already have sale for 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) 16(

costs borrowing the of capitalization of Period 2.

or construction and acquisition the to attributable directly are that costs borrowing The its for ready is asset the before cost the as capitalized are asset qualifying of production the for loss or profit in recognised are afterwards incurred costs Borrowing .sale or use intended .period current

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

costs borrowing capitalized of Calculation 3.

a of production or construction and acquisition the for obtained borrowings specific the For the depositing from earned income interest any deducting (expense interest the ,asset qualifying temporary the on arising income investment any or bank the with borrowings specific unused specific the to relation in incurred expense ancillary the and) borrowings those of investment .sale or use intended the for ready is asset qualifying the until capitalized be shall borrowings

of production or construction and acquisition the for obtained borrowings general the For the multiplying by determined is capitalized be to expense interest the ,asset qualifying a of amount excess the of average weighted the by used borrowings general of rate capitalization capitalization The .borrowings specific of amount the over asset the on expenditures cumulative the of rate interest average weighted the of light in determined and calculated be shall rate .borrowings general

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

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

asset Intangible) 17(

assets intangible of measurement Initial 1.

or owned substance physical without asset monetary-non identifiable an is asset intangible An .Company the by controlled

an on incurred expenditures The .cost at measured initially be shall asset intangible An that probable is it if only asset intangible the of cost as recognised be shall asset intangible asset the of cost the and Company the to flow will asset the with associated benefits economic loss or profit to charged be shall asset item an on expenditures Other .reliably measured be can .incurred when

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (asset Intangible) 17(

(continued (assets intangible of measurement Initial 1.

constructed-self For .asset intangible an as recognised be normally shall acquired right use Land shall buildings the of cost and right use land the on expenditures the ,)plants .g.e (buildings structures and buildings For .asset fixed and asset intangible an as for accounted separately be the and right use land the among allocated be shall consideration purchase the ,purchased the ,allocation reasonable a making in difficulty is there case In .basis reasonable a on buildings .asset fixed an as full in recognised be shall consideration

assets intangible of measurement Subsequent 2.

assets intangible of life Useful) i(

intangible an For .acquisition upon determined is assets intangible of life useful The or life useful its of years the estimates Company the ,life useful definite with asset a constituting capacity production as such units measurement similar of amount the the to benefits economic bring to life unforeseeable with asset intangible An .life useful .life useful indefinite with asset intangible an be to deemed is Company

assets intangible of Amortisation) ii(

life useful estimated the over amortized are life useful definite a with asset intangible An with asset intangible An .method line-straight the using acquisition of month the from of end the at out carried is test impairment an but amortized not are life useful indefinite .year the

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

• benefits economic future any generate longer no to expected is asset intangible an When) iii( is asset intangible the of amount carrying the ,year the of end the at Company the to .period the for loss or profit the into transferred entirely
• assets intangible of Impairment) iv(

.assets intangible of impairment for provision of recognition the for) 20(4 note see Please

development and research on Expenditure) 18(

• into project development and research internal an on expenditure the classifies Group The 1. .phase development the at expenditure and phase research the at expenditure
• development and research internal s'Company the of classification the for criteria Specific 2. :phase development and phase research into projects

carried are activities research and investigation creative which at phase the :phase Research technical or scientific new understanding and obtaining of purpose the for planned as out .knowledge

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

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (development and research on Expenditure) 18(

• recognized is project development and research internal an of phase research the at Expenditure 3. .incurred is it when period the for loss or profit in
• is project development and research internal an of phase development the at Expenditure 4. same the at satisfied are conditions following the of all if only asset intangible an as recognised :time
• for available be will it that so asset intangible the complete to feasible technically is It) i( ;sale or use
• ;asset intangible the sell or use to and complete to intends Management) ii(
• ,benefits economic generate will asset intangible the how demonstrated be can It) iii( the by produced products for market existing an is there that demonstrating including intangible the if used be can it that and ,itself asset intangible the for or asset intangible ;internally used be to is asset
• development the complete to resources other and financial ,technical adequate are There) iv( ;assets intangible the sell or use to ability the and
• be can phase development its at asset intangible the to attributable expenditure The) v( .measured reliably
• the between distinguished be cannot which development and research on expenditures the All 5. .incurred when loss or profit the in recognised are phase development and phase research

expenses prepaid term-Long) 19(

• recognized be should but incurred been have that expenditures are expenses prepaid term-Long 1. prepaid term-Long .periods subsequent and current the in year one than more over expenses as .period beneficial expected the over basis line-straight a on amortized are expenses
• profit in directly recognized be should period establishment the during expenses operating-Pre 2. .incurred as month the in loss or

assets of Impairment) 20(

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

• at impaired be may asset the that indication any is there if impairment for tested is asset An 1. recoverable the ,impaired be may asset the that exists indication any If .date sheet balance the an with asset intangible an ,combination business a from arising Goodwill .estimated is amount tested are use intended for ready been not have that assets intangible and life useful indefinite that indication any is there not or whether of irrespective ,year a once least at impairment for .impaired be may assets those
• the and sell to costs less value fair its of higher the is asset an of amount recoverable The 2. The .asset the from derived be to estimated flows cash future expected the of value present the estimate to possible not is it If .basis asset individual an on estimated is amount recoverable which to assets of group a of amount recoverable the ,asset individual the of amount recoverable .determined is belongs asset the

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (assets of Impairment) 20(

• 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 for provided is amount down-written The .amount recoverable the to down written is amount .period the for loss or profit in recognized and loss impairment
• subsequent in reversed be not will it ,recognized is assets above the of loss impairment the Once 4. .periods

benefits Employee) 21(

employment-post ,remuneration staff term-short includes mainly Company the of remuneration Staff :which in ,benefits staff term-long other and benefits termination ,benefits

,welfare staff ,subsides and allowance ,bonuses ,salaries includes mainly remuneration term-Short ,premium insurance injury related-work ,premium insurance maternity ,premium insurance medical welfare monetary-non and costs education employee and costs operation union ,funds provident housing services provided staff the which in period accounting the during incurred remuneration term-Short .etc as or period current the for loss or profit in included and ,liability a as recognised is Company the for .value fair at measured is welfare monetary-Non .cost asset related

mainly plan contribution Defined .plan contribution defined include mainly benefits employment-Post contribution Relevant .premium insurance unemployment and premium insurance pension includes the during period current the for loss or profit in or cost asset related of part as included is amount .incurred expenses the which in period

expiration the before employees with relationship employment the terminates Company the Where voluntary accept to employees encourage to compensation proposes or contracts employment the of benefit termination from arising liabilities compensation employee recognise shall it ,redundancy revoke not may Company the when date the on ,period current the for loss or profit in included and plans relationship employment of termination the to due provided benefit termination the unilaterally to related expenses and cost the recognises Company the when or proposals redundance employee or the if ,However .earlier is whichever ,benefit termination of payment the in involving restructuring reporting the of end the from months 12 within paid fully be to expected not is benefit termination .remuneration staff term-long other as for accounted be shall it ,period

for principles accounting same the with accordance in for accounted be shall plan retirement early The to paid be to contributions social the and wages or salaries The .abovementioned benefit termination to services rendering cease employees the which on date the from period the for employees retiring the current the for loss or profit in benefit termination as recognised be shall ,date retirement scheduled the .satisfied are provisions for criteria recognition the if period

defined in falls employees its for Company the by provided benefit employee term-long other Where defined a as otherwise or ,plan contribution defined a as for accounted be shall it ,plans contribution .plan benefit

Provisions) 22(

as recognised are conditions following the all satisfy which contingencies the to pertinent Obligations that likely is it) b; (Company the by borne obligation current a is obligation The) a (:liabilities accrued the) c (and; obligation the of performance the from resulted be will benefits economic of outflow an .measured reliably be can obligation the of amount

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (Provisions) 22(

necessary the of estimate best the at measured be shall liabilities accrued ,date sheet balance the At ,risks relevant account into taking after ,obligations existing of performance the for required expenses .contingencies the to pertinent factors other and money of value time ,uncertainties

be to expected are liabilities accrued of settlement for required expenses the of part or all If as recognised be ,basis recoverable a on ,shall amount compensation the ,party third a by compensated amount carrying the than more be not shall recognised amount compensation and ,separately asset an .liabilities accrued the of

instruments equity and payments based-Share) 23(

payments based-Share 1.

Equity .Company the by management senior to granted are incentives share settled-Equity .grant of date the at as value fair their at 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 are value fair in changes subsequent and ,grant of date the on value fair their at) reserve capital on value fair their at measured-re are employees to payments share settled-Cash .accounted not .payables remuneration staff and costs as recognised are and date sheet balance each

instruments equity of value fair of Determination 3.

value fair the ,option share as such granted instrument equity an for market active an is there If the ,not If .market active the in price quoted the on based determined is instrument equity the of .model pricing option the using determined is value fair

instruments equity exercisable of estimate best the for basis Recognition 4.

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

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

of value fair the on based determined is period the for recognised be to cost accumulated The ,instruments equity exercisable of number estimated and instruments equity abovementioned .period the for expensed is and ,period previous the for amount recognised the deducting after

Revenue) 24(

goods of Sale 1.

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

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (Revenue) 24(

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 recognised be shall estimated reliably received price purchase the on based services of rendering from revenue total the determines ,agreement or contract the under rendered are services the whom to party the by receivable or .unfair is price purchase the when except

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

• services of rendering from revenue the ,recoverable be to expected is incurred cost the If) i( is amount equivalent an and ,incurred been has that cost the at recognised be shall .cost service as loss or profit to forward carried
• incurred been has that cost the ,recoverable be to expected not is incurred cost the If) ii( services such from revenue no and ,period the for loss or profit the in recognised be shall .recognised is

rights use asset of Transfer 3.

the to flow will transaction the to related benefits economic the that probable is it When is it ,measured reliably be can rights use asset of transfer from revenue the and Company :follows as recognised

• and which during time of length the of basis on recognised is income interest The) i( .others the by utilized are funds cash s'Company the which at rate interest effective
• method and schedule payment agreed the of basis on recognised is income royalty The) ii( .contract or agreement relevant under

grants Government) 25(

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

grants government of measurement and Recognition 1.

are grants the and satisfied are conditions attaching all when recognized are grants Government .received

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 grant government a If .receivable or received amount .amount nominal a at measured

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (grants Government) 25(

grants government of treatment Accounting 2.

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

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

expenses related for compensation a is grant the where ,grant government related-income an For deferred as recognized be shall it ,periods subsequent in entity an by incurred be to losses or where; charged are expenses related when period the for loss or profit in included and income the ,entity the by incurred already losses or expenses related for compensation a is grant the .period the for loss or profit in directly recognized be shall grant

liabilities tax deferred/assets tax Deferred) 26(

tax income Current 1.

prior and current the for) assets or (liabilities tax income current ,date sheet balance the At by required as) returned or (paid be to expected tax income the at measured be shall periods is ,calculated is expense tax income current the which on based ,income Taxable .laws tax relevant with accordance in year the for tax before profit accounting the adjusting after derived .laws tax of requirements

liabilities tax income deferred and assets tax income Deferred 2.

or asset an of amount carrying the between difference the from arising differences Temporary of amount carrying the and base tax the between difference the and ,base tax its and liability determined be can that base tax a has but liability or asset an as recognised not is that item an income deferred and assets tax income deferred for recognised be shall ,laws tax to according .method liability sheet balance the using liabilities tax

related differences temporary taxable for recognised not are liabilities tax income Deferred a in liability or asset an of recognition initial the and; goodwill of recognition initial the :to taxable or profit accounting affects nor combination business a neither is which transaction temporary taxable for ,addition In .transaction the of time the at) loss deductible or (income the if ,ventures joint and ,associates ,subsidiaries in investments with associated differences is it and ,difference temporary the of reversal the of timing the control to able is Company deferred relevant,future foreseeable the in reverse not will difference temporary the that probable ,circumstances abovementioned for Except .either recognised not are liabilities tax income temporary taxable other from arising liabilities tax income deferred recognises Company the .differences

related differences temporary deductible for recognised not are assets tax income Deferred business a neither is which transaction a in liability or asset an of recognition initial the to of time the at) loss deductible or (income taxable or profit accounting affects nor combination in investments with associated differences temporary deductible for ,addition In .transaction the will difference temporary the that probable not is it if ,ventures joint and associates ,subsidiaries in available be will income taxable that probable not is it and ,future foreseeable the in reverse deferred relevant ,utilised be can difference temporary deductible the which against future the Company the ,circumstances abovementioned for Except .recognised not are assets tax income to differences temporary deductible other from arising assets tax income deferred recognises deductible the which against available be will income taxable that probable is it that extent the .utilised be can differences temporary

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (liabilities tax deferred/assets tax Deferred) 26(

(continued (liabilities tax income deferred and assets tax income Deferred 2.

that credits tax and losses deductible for asset tax income deferred a recognises Company The taxable future that probable is it that extent the to ,periods subsequent to forward carried be can .utilised be can credits tax and losses deductible the which against available be will income

are liabilities tax income deferred and assets tax income deferred ,date sheet balance the At or realised is asset the when period the to apply to expected are that rates tax the at measured .laws tax the to according ,settled is liability the

tax income deferred a of amount carrying the reviews Company the ,date sheet balance the At periods future in available be not will income taxable sufficient that probable is it If .asset amount carrying the ,utilised be can asset tax income deferred of benefit the which against be shall down written so amount Any .down written be shall asset tax income deferred the of .available be will income taxable sufficient that probable becomes it when reversed

expense tax Income 3.

.expense tax income deferred and expense tax income current comprises expense tax Income

current the for loss or profit in included is income or expense tax income deferred and Current and tax income current or income comprehensive other as recognised those for except ,period 'shareholders in recognised directly are that events or transactions to related tax income deferred and ,equity' shareholders or income comprehensive other in recognised are which ,equity the adjust to used is which ,combination business a from arising tax income deferred for except .goodwill of amount carrying

tax income Offsetting 4.

and assets the realize or off net to intention an with and off netting of rights legal the With income current and assets tax income current net the records Company the ,liabilities the settle .liabilities and assets the between offsetting after liabilities tax

,liabilities and assets tax income current off netting of rights legal the has Company the When tax income to related are liabilities tax income deferred and assets tax income deferred and different to related or authority competent tax same the by entity taxable same the on imposed tax income current and assets tax income current net the records Company the ,entities taxable entity taxable the that provided ,liabilities and assets the between offsetting after liabilities and assets realise ,or liabilities and assets tax income current off net to intended is involved and assets tax income deferred whenever period future significant each during liabilities settle .reversed be would liabilities

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

information Segment) 27(

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 Company the of component a is segment operating An

• ordinary of course the in expenses incur and revenues generate to able is component The 1. ;activities
• management s'Company the by reviewed regularly are component the of results operating The 2. its assess to and segment the to allocated be to resources about decisions make to order in and; performance
• available is component the of flows cash and results operating ,position financial on Information 3. major the with same the are segments operating of policies accounting The .Company the to .Company the of policies accounting
• is that amount the include liabilities and assets ,results operating ,revenue segment The 4. .basis reasonable a on segment the to allocated be can and segment the to attributable directly the before amount the at determined are segment operating an of liabilities and assets ,Revenue price Transfer .balances account current group-inter and transactions group-inter of elimination transactions the of those to similar terms on based calculated is segments operating between .parties other with

leases Operating) 28(

respective in loss or profit in leases operating under rentals the recognises ,lessor as ,Company The in for accounted are incurred costs direct Initial .basis line straight a on term leasing the over periods .period the for loss or profit the

estimates accounting and policies accounting significant in Changes) 29(

policies accounting in Changes 1.

Enterprises Business for Standards Accounting issued Finance of Ministry the 2014, in Early Presentation – 30 Enterprises Business for Standards Accounting ,Measurement Value Fair – 39 9 Enterprises Business for Standards Accounting ,)2014 Revised (Statements Financial of 33 Enterprises Business for Standards Accounting ,)2014 Revised (Benefits Employee– Business for Standards Accounting ,)2014 Revised (Statements Financial Consolidated– Enterprises Business for Standards Accounting ,Arrangements Venture Joint – 40 Enterprises Business for Standards Accounting and ,)2014 Revised (Investments Equity term-Long – 2 Caikuai documents of release the by Entities Other in Interests of Disclosure – 41 Enterprises 1 on effective became standards These .respectively 16, and 14 11, 10, 8, 7, 6, .No] 2014[ listed Entities .Enterprises Business for Standards Accounting adopting entities for 2014 July .date effective scheduled the of advance in standards the adopt to encouraged were overseas 37 Enterprises Business for Standards Accounting issued Finance of Ministry the ,Meanwhile hereinafter) (.23No] 2014 [Caikuai) (2014 Revised (Instruments Financial of Presentation– present to entities requiring ,")Instruments Financial of Presentation of Standard "as to referred periods accounting subsequent the and 2014 for reports financial their in instruments financial .standard the of requirements to pursuant

(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) 29(

(continued (policies accounting in Changes 1.

Enterprises Business for Standards Accounting revised or new five adopted had Company The Other in Interests of Disclosure ","Investments Equity term–Long "of Standards the than other been have which ,report annual 2013 its in" Instruments Financial of Presentation "and" Entities transition the to pursuant made adjustments with report annual 2014 its preparing in adopted comparable for statements financial in amounts and items on Impacts .standard each for rules :follows as out set are periods

Standard	Changes accounting in and policies on impacts Company the	Affected amount financial of statement 1 of as items 2014 January the for and ended year December 31 2013 Affected amount +/Increase
		Items	Decrease
Accounting for Standards Business Enterprises	According Accounting to Standards Business for Enterprises Long – 2 Equity term- Investments Revised ( for ,)2014	Financial assets available sale-for-	+4,000,000.00
Long – 2 Equity term- Investments Revised ( (2014	long equity term- investments where investing the entity does control not jointly or or control significant has influences the on and ,investee no has which price quoted active an in the and market of value fair cannot which reliably be ,measured Accounting the for Standards Business Enterprises Recognition – and Measurement of Financial Instruments apply shall equity The . investment RMB of of 4,000,000 Company the which , originally was recognized long a as equity term- investment been has , presented financial a as available asset ;sale-for-	Long equity term- investments	-4,000,000.00
	revised The Accounting Standards Business for Enterprises Long – 2 Equity term- Investments Revised ( ,(2014	Other comprehensive income	+23,335,449.54
	provided have accounting the treatment changes for owner the to of equity s' investee the net than other or profits other ,losses comprehensive income profit and distributions under ;method equity	Investment gains	-23,335,449.54
Accounting for Standards Business Enterprises	According Accounting to Standards Business for Enterprises 30 Presentation – Financial of (Statements (2014 Revised	Other comprehensive income	+17,014,908.31
30 Presentation – of	and application guidelines	Capital reserves	-6,246,753.49
Financial Statements (2014 Revised(		Differences on of translation foreign currency financial statements	-10,768,154.82
		Deferred income	+56,011,769.90
		Other current-non liabilities	-56,011,769.90
		Other assets current	+243,321,567.75
		Taxes VAT - payable	+243,321,567.75

(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) 29(

(continued (policies accounting in Changes 1.

:Investments Equity term-Long – 2 Enterprises Business for Standards Accounting

Equity term-Long – 2 Enterprises Business for Standards Accounting the of adoption the Before or control not did Company the where investments equity the ,) 2014 Revised (Investments price quoted no had which and ,investee the on influences significant no had or control jointly as for accounted were ,measured reliably be cannot which of value fair and market active an in Accounting the of adoption the Since .method cost the using by investments equity term-long the ,)2014 Revised (Investments Equity term-Long – 2 Enterprises Business for Standards .sale-for-available assets financial as for accounted been have aforesaid investments equity .policies accounting above the to changes the on based made are adjustments Retrospective

term-Long – 2 Enterprises Business for Standards Accounting the of adoption the Before in increase capital unilateral of acceptance the to due ,)2014 Revised (Investments Equity s'Company the ,shareholders other from entities associated and entities controlled jointly or over control joint with increased was interest of share its while diluted was shareholding recognised was transaction the ,method equity Under .entities those on influence significant the on based ,loss or profit current the in recorded and entities such of disposal partial as from arising Company the to attributable assets net of share increased the between difference and dilution after shareholding its to proportion in recognised investee the in increase capital shareholdings decreased the to attributable investments equity term-long of amount carrying the Business for Standards Accounting the of adoption the Since .forward carried be shall which such in ,method equity under ,)2014 Revised (Investments Equity term-Long – 2 Enterprises been has Company the to attributable investee the in assets net of share increased the ,cases these in interests equity the of disposal subsequent upon ,which reserve capital as recognised investment the in included fully or proportionally be can ,entities controlled jointly or associated the to changes the on based made are adjustments Retrospective .disposal of period the for gains .policies accounting above

:Entities Other in Interests of Disclosure – 41 Enterprises Business for Standards Accounting

Other in Interests of Disclosure – 41 Enterprises Business for Standards Accounting venture joint ,subsidiaries their in enterprises by interests of disclosure the to apply Entities consolidated the in included not are that entities structured and entities associated ,arrangements 41 Enterprises Business for Standards Accounting the of adoption The .statements financial the by disclosure of range broader a in result will Entities Other in Interests of Disclosure– disclosures made have statements financial These .statements financial to notes the in enterprises periods comparable for statements financial the to notes the and ,standard the with accordance in .accordingly restated been have

:Instruments Financial of Presentation – 37 Enterprises Business for Standards Accounting

Instruments Financial of Presentation – 37 Enterprises Business for Standards Accounting assets financial and offset of disclosure of requirements and provisions the add) 2014 Revised( assets financial for analysis maturity the of disclosure of requirements the amend and ,transfer the with accordance in presented been have statements financial These .liabilities financial and restated been have periods comparable for statements financial the to notes the and ,standard .accordingly

estimates accounting in Changes 2.

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

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

estimates and judgements accounting Critical) 30(

of amount carrying the to as assumptions and estimates ,judgments make to needs Company The inherent to due policies accounting its applying in measured accurately be cannot which items statement the on based made are assumptions and estimates ,judgments Such .activities operation of uncertainties and ,factors relevant other account into taking and management s'Company the of experience historical contingent of disclosure and liabilities and assets ,expenses ,revenue of amount reported the affect may such of uncertainties the from derived results actual the ,However .date sheet balance the at liabilities cause may which ,management s'Company the of estimation current the from differ may estimates .future the in affected be may which liabilities or assets of amount carrying the to adjustment critical

concern going a on assumptions and estimates ,judgments aforesaid the reviews regularly Company The if revised is estimate the which in period the in recognised is estimate accounting to revision A .basis it if periods future and revision the of period the in recognised is revision A .period that affects only it .periods future and current both affects

estimates ,judgments make to needs Company the where areas critical the ,date sheet balance the At :below out set are statements financial the in items of amount the to as assumptions and

leases of Classification 1.

with accordance in lease financing and lease operating as leases the classifies Company The ,classification the making When ."Leases – 21 Enterprises Business for Standards Accounting" the to relating rewards and risks the all whether judge and analyse to needs management the the whether or ,leasee the to transferred substantially been have assets out leased of ownership of ownership the to relating rewards and risks the all to obliged substantially been has Company .assets leased

inventories for Allowance 2.

cost of lower the at measuring by and inventories of policies accounting the with accordance In higher costs have which inventories for allowance makes Company the ,value realisable net and to inventories of down-Write .moving-slow and obsolete become or value realisable net than values realisable net and marketability of valuation the on based is values realisable net their make to management the requires inventories of impairment of Determination .inventories of purpose the account into taking and evidence definite of basis the on estimates and judgments between difference The .date sheet balance after events of impacts and inventories holding of and inventories of amount carrying the affect shall estimates original and outcome actual the period the during inventories of impairment the for provision the of reversal and for provision .revised are estimates the which in

amortisation and Depreciation 3.

assets fixed ,properties investment for amortisation and depreciation provide shall Company The value residual their of account into taking after and lives useful their over assets intangible and determine to lives useful the review regularly shall Company The .method line-straight using by useful The .period reporting each in for accounted be to amortised and depreciated amount the and assets similar on experience previous its to according Company the by determined is life the ,made previously estimate the in change material any is there If .updates technical estimated .period future the over adjusted be will amortisation and depreciation

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

(continued (ESTIMATES ACCOUNTING AND POLICIES ACCOUNTING MAJOR 4.

(continued (estimates and judgements accounting Critical) 30(

assets tax income Deferred 4.

that extent the to losses tax unused all for recognised be will assets tax income deferred The This .utilised is loss the which against profits taxable sufficient be will there probable is it and timing the estimate to judgments numerous apply to management s'Company the requires assets tax income deferred of amount the determine to as so profits taxable future the of amount .strategy planning tax the to reference with recognised be to

tax Income 5.

the of transactions some for calculation and treatment tax in uncertainties some are There required is authority tax the from approval The .business of course ordinary its during Company of outcome determined final the between difference Any .items some of expending tax-pre for income current the on effect an exert will amount estimated initially the and matters tax such .determined is amount final the which in period the during tax income deferred and tax

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	Turnover tax payable	1%-7%
Education surcharges	Turnover tax payable	3%
Corporate income tax	Taxable income	25%

approvals and preferences Tax) 2(

Ronshen Hisense ,Center Torch National the by approved enterprises tech-high of list the to According tech-high a as recognised was ,Company the of subsidiary a .,Ltd .,Co Refrigerator) Guangdong( .(2016 and 2015 2014, (years three of period effective an with ,)201444001326GR :Number (enterprise the to entitled is subsidiary this ,Enterprises Tech-High on regulation preference tax the to Pursuant .(15% 2013:) 2016 and 2015 2014, in 15% of rate tax income enterprise preferential

Kelon Guangdong ,Center Torch National the by approved enterprises tech-high of list the to According :Number (enterprise tech-high a as recognised was ,Company the of subsidiary a .,Ltd .,Co Mould tax the to Pursuant .)2016 and 2015 2014, (years three of period effective an with ,)201444001017GR enterprise preferential the to entitled is subsidiary this ,Enterprises Tech-High on regulation preference .(15% 2013:) 2016 and 2015 2014, in 15% of rate tax income

Certificate the received ,Company the of subsidiary a .Ltd .,Co Freezer) Guangdong (Ronshen Hisense issued jointly was which 2012 November 26 dated) 201244000446GF :Number (Enterprise tech-High of ,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 .)2014 and 2013 2012, (years three of period effective 15% of rate tax income enterprise preferential the to entitled is subsidiary this ,Enterprises tech-High 2014. and 2013 2012, in

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

(continued (TAXATION 5.

(continued (approvals and preferences Tax) 2(

received ,Company the of subsidiary a .,Ltd .,Co Appliance Electrical Household Hisense Guangdong was which 2013 October 16 dated) 201344000231GF :Number (Enterprise tech-High of Certificate the Finance Provincial Guangdong ,Department Technology and Science Guangdong the by issued jointly Taxation Local Provincial Guangdong and Bureau Tax State Provincial Guangdong ,Department tax relevant the to According .)2015 and 2014 2013, (years three of period effective an with ,Bureau enterprise preferential the to entitled is subsidiary this ,Enterprise tech-High on regulation preference 2015. and 2014 2013, in 15% of rate tax income

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

Certificate the received ,Company the of subsidiary a .,Ltd .,Co conditioning-Air) Shandong (Hisense issued jointly was which 2014 October 14 dated) 201437100159GR :Number (Enterprise tech-High of State Qingdao ,Department Finance Qingdao ,Department Technology and Science Qingdao the by 2014,) years three of period effective an with ,Bureau Taxation Local Qingdao and Bureau Taxation the ,Enterprises tech-High on regulation preference tax relevant the to According .)2016 and 2015 2016. and 2015 2014, in 15% is subsidiary this for rate tax income enterprise applicable

the by issued jointly was which 2014 October 14 dated) 201437100092GR :Number (Enterprise tech-High of Certificate the received ,Company the of subsidiary a .,Ltd .,Co Mould Hisense Qingdao Taxation State Qingdao ,Department Finance Qingdao ,Department Technology and Science Qingdao and 2015 2014, (years three of period effective an with ,Bureau Taxation Local Qingdao and Bureau applicable the ,Enterprises tech-High on regulation preference tax relevant the to According .)2016 2016. and 2015 2014, in 15% is subsidiary this for rate tax income enterprise

the by issued jointly was which 2014 October 14 dated) 201437100091GR :Number (Enterprise tech-High of Certificate the received ,Company the of subsidiary a .,Ltd Refrigerator) Shandong (Hisense Taxation State Qingdao ,Department Finance Qingdao ,Department Technology and Science Qingdao and 2015 2014, (years three of period effective an with ,Bureau Taxation Local Qingdao and Bureau applicable the ,Enterprises tech-High on regulation preference tax relevant the to According .)2016 2016. and 2015 2014, in 15% is subsidiary this for rate tax income enterprise

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

tax income an to subject are Kong Hong in incorporated were which Company the of subsidiaries The 2013:) 16.5% of rate a at Kong Hong in arising or from derived profits assessable estimated the on .(16.5%

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

(continued (TAXATION 5.

illustrations Other) 3(

• education local ,tax use land ,tax estate real ,others among ,including ,PRC the in taxes Other 1. are ,tax income individual withholding and duty stamp ,tax vessel and vehicle ,surcharges .laws tax State the of regulations relevant the with accordance in payable and calculated
• subject mainly is and Japan in person legal a is ,Company the of subsidiary a ,Ltd) Japan (Kelon 2. ,(tax business corporate and tax inhabitant corporate ,tax corporation including (tax income to :follows as are taxes such of rates and bases The .tax asset fixed and tax consumption

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

STATEMENTS FINANCIAL CONSOLIDATED AND COMBINATION BUSINESS 6.

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

subsidiaries Major) 1(

Name subsidiary the of	of Type subsidiary	Nature of Place registration	capital Business	Registered of Entity		of Scope business type	Actual investment end the at the of period	(%) Shareholding Indirect Direct		of % voting rights not held	Con solidated or	Minority interest	loss or Gain attributable minority to interest	Dividend attributed minority to interest
Hisense (Guangdong (Ronshen .Ltd .,Co Refrigerator Guangdong(" ("Refrigerator	owned-Wholly subsidiary	Industrial Foshan		\$26,800,000US	Limited liability company	Manufacture of sale and refrigerators	20,464.54		30% 70%	Yes 100%
Air Kelon Guangdong .Ltd .,Co conditioner 1*("conditioner Air Guangdong("	Subsidiary	Industrial Foshan		\$36,150,000US	Limited liability company	Manufacture air of sale and conditioners	28,100.00	60%		Yes 100%
Hisense (Guangdong (Ronshen .Ltd .,Co Freezer ("Freezer Guangdong("	owned-Wholly subsidiary	Industrial Foshan		23,700.00	Limited liability company	Manufacture of sale and freezers	3,530.59		56% 44%	Yes 100%

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED AND COMBINATION BUSINESS 6.

(continued (subsidiaries Major) 1(

Name subsidiary the of	of Type subsidiary	Nature of Place registration	capital Business	Registered of Entity		of Scope business type	Actual investment end the at the of period		(%) Shareholding Indirect Direct	of % voting rights not held	Con solidated or	Minority interest	loss or Gain attributable minority to interest	Dividend attributed minority to interest
Shunde Household Kelon Electrical .Ltd .,Co Appliance ("HEA Kelon("	owned-Wholly subsidiary	Industrial Foshan		1,000.00	Limited liability company	Manufacture of sale and appliances household	250.00		75% 25%	Yes 100%
Guangdong Home Hisense Appliances Hisense(".Ltd .,Co 2*("Appliances Home	Subsidiary	Industrial Foshan		5,740.51	Limited liability company	Manufacture home of sale and appliances metal as such , furniture ,furniture plastic , gas ,ventilator kitchen stove	81.17% 5,153.11			Yes 81.17%		1,647.54	495.25
Foshan Rongsheng Shunde Plastic Rongsheng (".Ltd .,Co ("Plastic	Subsidiary	Industrial Foshan		\$15,827,400US	Limited liability company	plastic of Manufacture	8,184.58 parts		25.13% 44.92%	Yes 70.05%		8,396.81	166.56
Guangdong .,Co Mould Kelon ("Mould Kelon (".Ltd	Subsidiary	Industrial Foshan		\$15,056,100US	Limited liability company	mould of Manufacture	8,886.70		70.11%	Yes 70.11%		5,211.82	424.76
Guangdong Electronics Huaao Huaao (".Ltd .,Co ("Electronics	Subsidiary	Industrial Foshan		1,000.00	Limited liability company	Research ,development and of sale and production products electronic	700.00		70%	Yes 100%
Guangdong Kelon Shunde Foshan Property .Ltd .,Co Service ("Property Kelon("	owned-Wholly subsidiary	Foshan	500.00 Service	Limited	liability company	consultancy Corporate ,catering,management decoration household design	492.78		100%	Yes 100%
Shunde Foshan Import Wangao Export& Wangao (".Ltd .,Co ("E&I	owned-Wholly subsidiary	Foshan	300.00 Commercial	Limited	liability company	export and Import	300.00		80% 20%	Yes 100%
Foshan Jiake Kelon Shunde Electronics Kelon (".Ltd .,Co ("Jiake	owned-Wholly subsidiary	Industrial Foshan		6,000.00	Limited liability company	communication and IT micro and,technology technology electronics development	6,000.00		30% 70%	Yes 100%
Guangdong Weili Kelon Electrical .,Co Appliances ("Weili Kelon (".Ltd	Subsidiary	Industrial Zhongshan		20,000.00	Limited liability company	Production intelligent of ,machines washing intelligent conditioners-air and maintenance sale-after services technology and its for consultation products for products 70% , sale domestic		55%		80% 25%	) Yes		0.23 (436.26
Hisense (Yingkou (Ronshen .Ltd .,Co Refrigerator (" ("Refrigerator Yingkou	Subsidiary	Industrial Yingkou		20,000.00	Limited liability company	Manufacture of sale and refrigerators	14,214.36		36.79% 42%	Yes 78.79%			(344.58) 217.42
Jiangxi Industrial Kelon .Ltd .,Co Development ("Kelon Jiangxi("	owned-Wholly subsidiary	Industrial Nanchang		\$29,800,000US	Limited liability company	Manufacture of sale and household commercial and ,conditioners-air refrigerators and freezers , small appliances household	23,941.85		40% 60%	Yes 100%

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED AND COMBINATION BUSINESS 6.

(continued (subsidiaries Major) 1(

Name subsidiary the of	of Type subsidiary	Nature of Place registration	capital Business	Registered of Entity		of Scope business type	Actual investment end the at the of period	(%) Shareholding Indirect Direct		of % voting rights not held	Con solidated or interest	Minority	loss or Gain attributable minority to interest	Dividend attributed minority to interest
Kelon Jiangxi Electrical Combine .Ltd .,Co Appliances 3*("Combine("	Subsidiary	Industrial Nanchang		2,000.00	Limited liability company	Research ,development and of sale and production household commercial and ,airconditioners refrigerators and freezers , small appliances household	1,100.00			No 55% 55%
Hangzhou .,Co Electrical Kelon Ltd ("Kelon Hangzhou (".	owned-Wholly subsidiary	Industrial Hangzhou		2,400.00	Limited liability company	Research development and high of production and efficiency saving energy , and friendly environmental refrigerators technology , for friendly environmental refrigerators technology , consultation ,warehousing , and s'Company the of sale products	100% 2,400.00			Yes 100%
Hisense (Yangzhou (Ronshen .Ltd .,Co Refrigerator Yangzhou(" ("Refrigerator	owned-Wholly subsidiary	Industrial Yangzhou		\$44,447,900US	Limited liability company	Production energy of sale and environmental ,saving refrigerators friendly and saving energy other electrical cooling appliances	32,254.38	25.67% 74.33%		Yes 100%
Shangqiu .,Co Electrical Kelon Ltd ("Kelon Shangqiu (".	owned-Wholly subsidiary	Industrial Shangqiu		15,000.00	Limited liability company	Research ,development and manufacture of sale and household commercial and ,conditioners-air refrigerators and freezers , small appliances household and ,accessories and parts and relevant of provision information technical and services consultancy	15,000.00		100%	Yes 100%
Zhuhai Electrical Kelon Industrial .,Co Development ("Kelon Zhuhai (".Ltd	owned-Wholly subsidiary	Industrial Zhuhai		\$29,980,000US	Limited liability company	Research development and of manufacture and air ,refrigerators ,freezers ,conditioners small appliances household accessories related and	23,581.63		25% 75%	Yes 100%
Shenzhen .,Co Purchase Kelon Ltd ("Kelon Shenzhen (".	owned-Wholly subsidiary	Shenzhen	Commercial	10,000.00	Limited liability company	Domestic material ,business marketing and supply ,franchise excluding( control of monopoly and goods ;export and import); provision ,warehousing of information consultation	10,000.00	95%		Yes 100% 5%
River Pearl Refrigerator Electric River Pearl (".Ltd .,Co ("Refrigerator	owned-Wholly subsidiary	Hong	Commercial Kong	\$400,000HK	Limited liability company	materials raw of Sale for accessories and refrigerators	31.56		100%	Yes 100%

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED AND COMBINATION BUSINESS 6.

(continued (subsidiaries Major) 1(

Name subsidiary the of	of Type subsidiary	Nature of Place registration	capital Business	Registered of Entity		of Scope business type	Actual investment end the at the of period		(%) Shareholding Indirect Direct	of % voting rights not held	Con solidated or interest	Minority	loss or Gain attributable minority to interest	Dividend attributed minority to interest
Kelon .Ltd .,Co Development ("Development Kelon("	owned-Wholly subsidiary	Kong Hong	\$HK Investment	Limited 5,000,000	liability company	holding Investment	100% 1,120.00			Yes 100%
Limited) Japan (Kelon ("Japan Kelon("	owned-Wholly subsidiary	Japan	Commercial	1,100,000,000 JPY	Limited liability company	Technical trading and research household electrical in appliances	2,594.32		100%	Yes 100%
International Kelon Incorporation ("KII("	owned-Wholly subsidiary	British Virgin Islands	Commercial	\$50,000US	Limited liability company	Investment sale and holding of appliances household	0.0006		100%	Yes 100%
(Hisense Refrigerator) Chengdu Chengdu (".Ltd .,Co ("Refrigerator	owned-Wholly subsidiary	Industrial Chengdu		5,000.00 Limited	liability company	Manufacture household of and appliances refrigeration ,equipment s'Company the of sale products of provision and , related services sale-after	100% 5,000.00			Yes 100%
Shandong (Hisense Refrigerator) Shandong (".Ltd .,Co ("Refrigerator	owned-Wholly subsidiary	Industrial Qingdao		27,500.00 Limited	liability company	Manufacture saving energy of and friendly environmental refrigerators and freezers , other energy household saving ;appliances cooling sale manufactured-self of products ;Company the of design development and the in products new of area and saving energy of friendly environmental refrigerators and freezers , cooling saving energy appliances	27,500.00	100%		Yes 100%
Guangdong Refrigerator Hisense .Ltd .,Co Marketing (" Marketing Refrigerator ("Company	Foshan Subsidiary		Commercial	20,081.90	stock Joint limited	Sale after of provision and sale services technical and of ,freezers ,refrigerators washing living ,machines other and appliances appliances household	15,827.60		78.82%	Yes 78.82%	4,596.72		343.86
Hisense Qingdao conditioner-Air Marketing Air (".Ltd .,Co Marketing conditioner ("Company	Subsidiary	Qingdao	Commercial	10,091.00	stock Joint limited	General :operation of items provision and sales and sale-after of air of services technical conditioners ,purifiers air , living ,dehumidifiers appliances environmental , appliances	7,626.00		75.57%	Yes 75.57%	3,503.62		1,039.58

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED AND COMBINATION BUSINESS 6.

(continued (subsidiaries Major) 1(

Name subsidiary the of	of Type subsidiary	Nature of Place registration	capital Business	Registered of Entity		of Scope business type	Actual investment end the at the of period	(%) Shareholding Indirect Direct		of % voting rights not held	Con solidated or interest	Minority	loss or Gain attributable minority to interest	Dividend attributed minority to interest
Hisense Appliance Home & Research) Europe( Development GmbH Center Hisense(" ("Research Europe	owned-Wholly subsidiary	Germany	EUR center D&R	Limited 50,000.00	liability company	Research and development , ,refrigerators of design air washing ,conditioners- machines household small , other and appliances ,appliances household technical of provision services ,consultation and for support technical household and ,appliances sale proposals design of of appliances household products	39.85		100%	Yes 100%
Hisense Air) Guangdong ( Conditioner Limited Company (" Air Guangdong Hisense ("Conditioner	owned-Wholly subsidiary	Industrial Jiangmen		20,000.00	Limited liability company	Development manufacture , air of assembly and conditioners ,purifiers air , living ,dehumidifiers appliances environmental , other and appliances appliances household self of sale ,products manufactured ,products sale-after of provision and consultancy technical to related services Import ,products above various of export and goods technologies and and manufactured-self distributed of exclusive ( technologies or goods business to subject operation by restrictions State from prohibited or (export or import	20,000.00		100%	Yes 100%
Hisense Mould) Guangdong ( Plastic Limited Company Hisense(" Mould Guangdong ("Plastic	owned-Wholly subsidiary	Industrial Jiangmen		1,000.00 Limited	liability company	Manufacture ,moulds of plastic ,hardwares exclusive (furnitures ,(plastics out-worn of ,development and assembly ,manufacture and ,parts their of sales sale-after of provision and consultancy technical to related services Import ,products above various of export and goods technologies and and manufactured-self that items (distributed permission by required is ,law be shall operations no carried permitted until out by (departments relevant	1,000.00		100%	Yes 100%

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED AND COMBINATION BUSINESS 6.

(continued (subsidiaries Major) 1(

control common under combination business from acquired Subsidiary 2.

Name subsidiary the of	of Type subsidiary	Nature of Place Business registration		Registered of Entity capital		of Scope business type	Actual investment end the at the of period	(%) Shareholding	Indirect Direct	of % voting rights not held	Con solidated or	Minority interest	loss or Gain attributable minority to interest	Dividend attributed minority to interest
Hisense .,Co Electric) Beijing ( (".Ltd ("Refrigerator Beijing	Beijing Subsidiary		8,571.00 Industrial		Limited liability company	Manufacture refrigerator of other and products ;appliances household sale manufactured-self of products export and import; goods of ,technologies and provision and and import of services agency export	55% 9,210.12			Yes 55%		8,798.18	1,431.07
Hisense Air) Shandong ( .,Co conditioning Air Shandong (".Ltd ("conditioning	owned-Wholly subsidiary	Qingdao		50,000.00 Industrial	Limited liability company	Research ,development and manufacture of sale and air products conditioning- and and ,moulds injection sale-after of provision services maintenance	56,717.55	100%		Yes 100%
Air) Zhejiang (Hisense .Ltd .,Co conditioning Zhejiang(" ("conditioning-Air	Huzhou Subsidiary			11,000.00 Industrial	Limited liability company	Production ,conditioners-air of manufacture of sale and other ,appliances household related of provision and ,services technical import goods of export and technologies and	51% 5,452.36			Yes 51%		3,954.86	(233.94)
Hisense Qingdao .Ltd .,Co Mould ("Mould Hisense("	Subsidiary	Qingdao	2,764.20 Industrial		Limited liability company	Design of manufacture and moulds ,processing machine , design manufacture and of ,injection plastic ,jigs and brushing/painting .etc processing	12,162.80	78.70%		Yes 78.70%		6,521.70	1,385.12	294.39
(Hisense .,Co Electric) Nanjing (".Ltd ("Refrigerator Nanjing	Nanjing Subsidiary			12,869.15 Industrial	Limited liability company	Research ,development and manufacture of sale and fluorine refrigeration free- other and products .appliances household Import various of export and goods technologies and and manufactured-self distributed	10,173.67		60%	Yes 60%		5,809.35	(804.72)

• Huaao in interests equity 70% and conditioner-Air Guangdong in interests equity 60% holds Company The 1* 100% bear and companies these to support financial provide to committed has Company the as however ,Electronics .shareholding 100% for accounted was investment equity term-long the therefore ,losses their of
• .,Co Appliances Home Hisense Guangdong to changed officially name its had .Ltd .,Co fittings kelon Guangdong 2* current the during increased was Appliances Home Hisense of capital registered The .period current the during .Ltd from decreased was Appliances Electrical Hisense in shareholding s'Company the ,increase the upon and ,period 81.17%. to 100%
• ,reorganization and liquidation in declared has Combine As .Combine in interests equity 55% holds Company The 3* .statements financial consolidated the in included been not has it therefore

(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 of Illustration 3.

period the during consolidated newly Subsidiaries

	assets Net at as	Unit RMB :
Name	the of end the period	Net profit the for period
Hisense Guangdong -Air Conditioner Hisense Guangdong Mould Plastic	197,193,190.13 9,969,967.26	) 2,806,809.87 ( ) (30,032.74

subsidiaries owned-wholly-non principal the of information financial Major 4.

the of Name subsidiary	:Unit 0000'RMB Closing balance
	Current assets	Non current- assets	assets Total	Current liabilities	Non current- liabilities	Total liabilities
Refrigerator Marketing Company Air conditioner-	278,235.80	3,613.95	281,849.75	260,151.50		260,151.50
Marketing Company	249,589.64	1,113.83	250,703.47	236,360.66		236,360.66

the of Name subsidiary	Opening balance
	Current assets	Non current- assets	assets Total	Current liabilities	Non current- liabilities	Total liabilities
Refrigerator Marketing
Company	20,075.10		20,075.10
Air conditioner-
Marketing Company	10,087.08		10,087.08

the of Name

subsidiary		Amount incurred	during year current		Amounts in incurred year previous
	Operating revenue	profit Net	com Total prehensive income	Cash from flows operating activities	Operating revenue	profit Net	com Total prehensive income	Cash from flows operating activities
Refrigerator Marketing
Company Air conditioner-	658,255.99	1,623.16	1,623.16	9,638.90		(6.8)	(6.8)	(20,073.70)
Marketing Company	673,619.51	4,255.73	4,255.73	30,878.56		(3.92)	(3.92)	(10,063.92)

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED AND COMBINATION BUSINESS 6.

(continued (subsidiaries Major) 1(

• of control of losing without but ,in interest ownership the in changes to led that Transactions 5. subsidiary the
• subsidiary the in interest ownership of share the in changes to Notes) 1(

was Appliances Home Hisense of capital registered the ,period current the During in shareholding s'Company the ,increase the upon and 10,810,500RMB by increased 81.17%. to 100% from changed Appliances Home Hisense

to attributable interest ownership and interest minority the on transactions the of Effect) 2( parent the

Item	Hisense Home Appliances
of Cost /purchase consideration for disposal	14,594,175.00
Cash —	14,594,175.00
Total of cost /purchase consideration for disposal	14,594,175.00
Less Share : the of subsidiary asset net' measured in proportion the to
acquired disposed/ equity interest	17,803,080.56
Difference	) 3,208,905.56 (
Including : Adjustment capital to reserve	) 3,208,905.56 (

entities operating overseas of statements financial the in items major for rate Exchange 6.

Major items the in financial statements	Currency	Balances denominated in foreign currency	Exchange rate	Unit RMB : Balances denominated in RMB
Cash bank at on and hand	HKD	22,571,972.88	0.78887	17,806,352.25
	EUR	53,168.88	7.4556	396,405.90
Net accounts receivable	HKD	699,772,109.52	0.78887	552,029,224.04
Other payables	HKD	453,545,505.95	0.78887	357,788,443.28
Revenue from principal operations	HKD	5,072,178,363.63	0.78755	3,994,594,070.28
Administrative expenses	HKD	2,794,715.45	0.78755	2,200,978.15

:rate exchange to Notes

include currency foreign in for accounted are that entities operating overseas Consolidated .Japan Kelon and Research Europe Hisense ,KII ,Development Kelon ,Refrigerator River Pearl at liabilities and assets of items the translated has Company the ,consolidation of date the On unallocated than other (equity under items while ,date sheet balance the on rate exchange spot translated were loss and profit under items and ,rate exchange historic at translated were) profits was assets net and liabilities and assets between difference The .rate exchange average at s'shareholder under separately presentated and" income comprehensive Other "in reflected .sheet balance the in equity

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

STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

balances closing whereas 2014, January 1 at as balances to refer balances opening ,specified otherwise Unless( period previous the whereas 2014, to refers period current the and 2014, December 31 at as balances to refer :Company the of statements financial the to notes major including (notes following the in 2013 to refers

hand on and bank at Cash 1.

	Closing balance			Opening balance
Item	Foreign currency	Exchange rate	RMB	Foreign currency	Exchange rate	RMB
:hand on Cash
RMB	10,000.00	1.00000	10,000.00	2,857.60	1.0000	2,857.60
USD
JPY
Others
Subtotal :cash of			10,000.00			2,857.60
:deposits Bank
RMB	821,945,447.61	1.00000	821,945,447.61	327,865,899.56	1.0000	327,865,899.56
HKD	589,349.85	0.78887	464,920.48	10,123,987.34	0.7862	7,959,782.49
USD	7,363,232.04	6.11900	45,055,608.01	20,868,665.66	6.0969	127,234,162.50
JPY	158,386.00	0.05137	8,136.45	96,485.00	0.0578	5,574.15
EUR	341,318.49	7.45560	2,544,734.41	1,176,618.04	8.4189	9,905,829.81
Others	2,202.38		9,908.16	2,210.47		13,071.43
of Subtotal :deposits bank			870,028,755.12			472,984,319.94
at cash Other on and bank :hand
RMB	625,000.00	1.00000	625,000.00	800,000.00	1.0000	800,000.00
of Subtotal at cash other
bank :hand on and	625,000.00		625,000.00			800,000.00
Total			870,663,755.12			473,787,177.54

:hand on and bank at cash to Notes

.deposit security mainly represented hand on and bank at cash Other

:follows as listed are hand on and bank at cash restricted of Breakdown

Item	Closing balance	Opening balance
Security deposit	625,000.00	800,000.00
Total	625,000.00	800,000.00

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

loss or profit through value fair at assets Financial 2.

Category) 1(

Item	Closing balance	Opening balance
Financial assets for-held trading-	162,460.00	67,115,019.35
Including : Derivative financial assets	162,460.00	67,115,019.35
Total	162,460.00	67,115,019.35

trading-for-held assets financial to Notes) 2(

• at as trading-for-held assets financial the realizing for restriction material no was There) i( .year the of end the
• exchange forward outstanding the represented mainly assets financial Derivative) ii( were which ,banks and Company the by into entered contracts sale and settlement difference the on based trading-for-held liabilities or assets financial the as recognized as rates forward the and contracts forward outstanding the of price quotated the between 2014. December 31 at

receivable Notes 3.

receivable notes of Classification) 1(

Category	Closing balance	Opening balance
Bank acceptance notes	967,193,183.44	2,152,781,319.53
Commercial acceptance notes	24,603,754.38	8,020,413.97
Total	991,796,937.82	2,160,801,733.50

:year the of end the at as receivable notes Pledged) 2(

Item	Pledged amounts at as of end the year the
	Closing balance	Opening balance
Bank acceptance notes	365,731,397.56	841,772,597.15
Total	365,731,397.56	841,772,597.15

:follows as are receivables notes five top the :Whereas

Issuer	of Date issuance	Maturity date	Amount
1 Top	2014-7-31	2015-1-31	31,232,130.00
2 Top	2014-7-31	2015-1-31	21,813,067.00
3 Top	2014-8-29	2015-2-28	12,904,460.00
4 Top	2014-8-29	2015-2-28	12,480,671.00
5 Top	2014-12-24	2015-6-24	10,349,963.50

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivable Notes 3.

• .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( .notes the settle to issuers the of inability to due receivable
• to amounted yet due not but parties other to endorsed notes ,year the of end the at As) 5( notes five top the with ,)5,114,804,598.86RMB 2013: December 31 (6,064,065,561.52RMB :follows as receivables

Issuer	of Date issuance	Maturity date	Amount
Beijing Jingdong Century
Trading .Ltd .,Co	2014-07-16	2015-01-16	18,455,375.00
Anhui Yu Fang Electric
Appliance Sales .Ltd .,Co	2014-07-24	2015-01-24	14,079,605.00
JiaxingYongle Electrical
Appliance .Ltd .,Co	2014-07-18	2015-01-18	10,529,499.94
Qingdao Gome Electrical
Appliance .Ltd .,Co	2014-12-24	2015-06-24	10,302,539.10
Suning Procurement of Center
Suning Commerce Group .,Co
.Ltd	2014-08-29	2015-02-27	10,000,000.00

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

receivable Accounts 4.

:category by receivable Accounts) 1(

		Closing	balance
	Book value		Provision for	debts bad
Category	Amount	%	Amount	%
Individually significant and to subject separate provision for debts bad
Ageing analysis	2,131,048,376.82	100.00	146,756,989.89	6.89
Greencool Companies
Subtotal	2,131,048,376.82	100.00	146,756,989.89	6.89
Individually insignificant but to subject separate provision for debts bad
Total	2,131,048,376.82	100.00	146,756,989.89	6.89

(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(

table above from Continued

		Opening balance
	Book value		Provision for	debts bad
Category	Amount	%	Amount	%
Individually significant and to subject separate provision for debts bad
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 but to subject separate provision for debts bad
Total	1,822,759,222.92	100.00	177,987,400.65	9.76

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

Closing balance					Opening balance
	value Book				value Book
Aging	Amount	%	for Provision debts bad	Amount	%	for Provision debts bad
Within months three three Over but months	1,939,033,166.75	90.99		1,603,973,518.09	88.00
within months six	41,524,824.98	1.95	4,152,482.50	25,252,208.41	1.39	2,525,220.84
six Over but months
within year one	15,771,755.40	0.74	7,885,877.70	4,216,549.94	0.23	2,108,274.97
year one Over	134,718,629.69	6.32	134,718,629.69	150,626,963.20	8.26	150,626,963.20
Total	2,131,048,376.82	100.00	146,756,989.89	1,784,069,239.64	97.88	155,260,459.01

:Companies Greencool by debts bad for provided group the in receivable Accounts

	Closing balance		Opening balance
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
Wuhan Changrong
Electrical Appliance
.Ltd .,Co Wuhan ("
Changrong ("			20,460,394.04	14,921,847.02
Total			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 debt bad in Movements) 2(

			Decrease year the for
Year	Opening balance	Provision year the for	Reversal	off-Write	Closing balance
2014	177,987,400.65	17,213,300.23	6,673,376.81	41,770,334.18	146,756,989.89

off written are that receivable Accounts) 3(

Name	Nature	Amount	Reason for off-write	Whether or not arising from related party transactions
Unrelated party	Payment for goods	57,733,375.82	Not recoverable to due aging long	No
Total		57,733,375.82	—	—

:follows as are off written receivable accounts major :Whereas

Name	Nature	Amount	Reason for off-write	The procedure involved in performing off-write	Whether or not arising from related party transactions
Hefei Weixi	Payment for goods	18,229,589.24	Not recoverable due to aging long	Approval from of Board directors	No
Wuhan Changrong	Payment for goods	20,460,394.04	Not recoverable due to aging long	Approval from of Board directors	No
Total		38,689,983.28

more or 5% holds who shareholder from due amounts no was there 2014, December 31 at As) 4( 2013, December 31 at As .receivable accounts in Company the of shares voting) 5% including( shares voting) 5% including (more or 5% holds who shareholder from due amounts no was there .receivable accounts in Company the of

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivable Accounts 4.

receivable accounts five Top) 5(

.No	Relationship with the Company	Amount	Ageing	Percentage of total the accounts receivable (%)
1 Top	Unrelated party	343,456,693.76	Within three months	16.12
2 Top	Unrelated party	193,642,266.00	Within three months	9.09
3 Top	Unrelated party	57,641,325.65	Within three months	2.7
4 Top	Related party	47,459,451.83	Within three months	2.23
5 Top	Unrelated party	42,512,958.01	Within three months	1.99
Total		684,712,695.25	—	32.13

• the of end the at as parties related from receivable accounts of details for 8 note see Please) 6( .year
• 327,418,638.64RMB to amounted receivable accounts of balance the ,year the of end the at As) 7( 253,985,142.45.RMB of borrowings secure to borrowings secured factoring for used were

Prepayments 5.

:follows as aging by presented are Prepayments) 1(

	Closing balance		Opening balance
Aging	Amount	%	Amount	%
Within year one	493,371,989.78 4,837,316.90	99.03 0.97	349,160,071.55	98.94
to One years two			3,278,286.47	0.93
Two three to years
three Over years			465,213.00	0.13
Total	498,209,306.68	100	352,903,571.02	100

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (Prepayments 5.

prepayments five Top) 2(

.No	Relationship with the Company	Amount	Ageing	Reason non for settlement
1 Top	Unrelated party	98,492,017.21	Within year one	Normal settlement
2 Top	Unrelated party	48,802,491.27	Within year one	Normal settlement
3 Top	Unrelated party	41,101,021.86	Within year one	Normal settlement
4 Top	Unrelated party	24,134,400.00	Within year one	Normal settlement
5 Top	Unrelated party	20,584,598.66	Within year one	Normal settlement
Total		233,114,529.00 —

more or 5% holds who shareholder from due amounts no was there 2014, December 31 at As 2013, December 31 at As .prepayments the in Company the of shares voting) 5% including( shares voting) 5% including (more or 5% holds who shareholder from due amounts no was there .prepayments the in Company the of

receivables Other 6.

:follows as category by disclosed are receivables Other) 1(

Closing balance
Book		Provision for	debts bad
Amount	%	Amount	%
127,393,675.52	18.88	3,800,000.00	2.98
178,154,494.66	26.40	29,659,997.32	16.65
369,278,769.88	54.72	148,315,416.08	40.16
547,433,264.54	81.12	177,975,413.40	32.51
			26.94
	674,826,940.06	value 100.00	181,775,413.40

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

(continued (:follows as category by disclosed are receivables Other) 1(

:table above from Continued

	Opening balance
	Book value		Provision for	debts bad
Category	Amount	%	Amount	%
Individually significant and to subject separate provision for debts bad
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 to subject separate provision for debts bad
Total	742,961,439.23	100.00	196,623,942.57	26.46

separate to subject and significant individually receivables other ,year the of end the at As :follows as are debts bad for provision

	Closing balance
Other receivables provided( by (company	Other receivables	Provision for debts bad	Provision ratio	Reasons for provision
Grant	127,393,675.52	3,800,000.00	2.98%	The percentage to total receivables exceeding 10%
Total	127,393,675.52	3,800,000.00	— —

:follows as are aging by debts bad for provided group the in receivables Other

		Closing balance		Opening balance
		value Book			value Book
Aging	Amount	%	for Provision debts bad	Amount	%	for Provision debts bad
Within months three	144,145,632.73	21.36		317,731,755.84	42.77
three Over but months
within months six	2,912,828.41	0.43	291,282.84	994,388.25	0.13	99,438.82
six Over but months
within year one	3,454,638.05	0.51	1,727,319.01	1,461,536.83	0.2	730,768.42
year one Over	27,641,395.47	4.10	27,641,395.47	37,740,388.43	5.08	37,740,388.43
Total	178,154,494.66	26.40	29,659,997.32	357,928,069.35	48.18	38,570,595.67

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

(continued (:follows as category by disclosed are receivables Other) 1(

:follows as are Companies Greencool by debts bad for provided group the in receivables Other

	Closing	balance	Opening balance
		Provision for		Provision for
Name	Amount	debts bad	Amount	debts bad
Guangdong Greencool			13,754,600.00	6,185,215.74
Hainan Greencool Environmental
Protection Engineering .Ltd .,Co
Hainan(" ("Greencool	12,289,357.71	12,289,357.71	12,289,357.71	12,289,357.71
Jiangxi Kesheng Trading .Ltd .,Co
Jiangxi(" ("Kesheng	27,462,676.72	20,103,988.97	27,462,676.72	20,306,709.12
Jinan Ai San Chemical Fu .Ltd .,Co
Jinan(" ("Fu Ai San	121,496,535.45	24,368,160.49	121,496,535.45	24,795,942.45
Greencool Technology Development
Shenzhen( .Ltd .,Co) Shenzhen ("
Greencool Technology ("	32,000,000.00	15,519,462.85	32,000,000.00	15,973,475.39
Greencool Environmental Engineering
Shenzhen .Ltd .,Co Shenzhen ("
Greencool Environmental ("	33,000,000.00	16,004,446.06	33,000,000.00	16,472,646.49
Jiangxi Plastic Keda Technology
Ltd .Co Jiangxi (". ("Keda	13,000,200.00		13,000,200.00
Zhuhai Longjia Refrigerating Plant
Ltd .,Co Zhuhai (". ("Longjia	28,600,000.00		28,600,000.00
Zhuhai Air Defa conditioner- Fittings
Ltd .,Co Zhuhai (". ("Defa	21,400,000.00		21,400,000.00
Wuhan Changrong Electrical
Appliance Ltd .,Co Wuhan (".
("Changrong	20,000,000.00		20,000,000.00
Beijing Deheng Solicitors Deheng ("
("Solicitors	2,000,000.00	2,000,000.00	4,000,000.00	4,000,000.00
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	369,278,769.88	148,315,416.08	385,033,369.88	158,053,346.90

receivables other of impairment for provision in Movements) 2(

			Decrease	year the for
Year	Opening balance	Provision for year the	Reversal	off-Write	Closing balance
2014	196,623,942.57	6,254,032.03	14,647,185.63	6,455,375.57	181,775,413.40

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

off written are that receivables Other) 3(

Name	Nature	Amount	Reasons for off-write	Whether not or arising from related party transactions
Unrelated party	Debt Balance/ due	6,455,375.57	Not recoverable due to aging long	No
Total		6,455,375.57	—	—

:follows as are off-written receivables other major :Whereas

Name	Nature	Amount	for Reasons off-write	The procedure in involved performing off-write	or whether arising not from related party transactions
Shunde Yunlong Consultancy Service Limited	Debt due Balance/	4,455,375.57	Not recoverable long to due aging	Approval from of Board directors	No
Beijing Deheng Solicitors	Debt due Balance/	2,000,000.00	Not recoverable long to due aging	Approval from of Board directors	No

more or 5% holds that shareholder from due amounts no was there 2014, December 31 at As) 4( 31 at As .receivables other of balance the in Company the of shares voting) 5% including( including (more or 5% holds that shareholder from due amounts no was there 2013, December .receivables other of balance the in Company the of shares voting) 5%

nature by receivables Other) 5(

Nature	Closing balance	Opening balance
Inter group- current account payments	477,322,300.55	521,758,064.81
Personal borrowings	3,508,590.02	3,417,090.85
Security deposit	1,661,640.00	1,496,538.70
Others	192,334,409.49	216,289,744.87
Total	674,826,940.06	742,961,439.23

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (receivables Other 6.

receivables other five Top) 6(

.No	Relationship with the Company	Amount	Ageing	Percentage the of total other Receivables (%)
1 Top	Unrelated party	127,393,675.52	one Over year	18.79
2 Top	" Specific third " party	121,496,535.45	Over three years	17.92
3 Top	" Specific third " party	58,030,000.00	Over three years	8.56
4 Top	" Specific third " party	33,000,000.00	Over three years	4.87
5 Top	" Specific third " party	32,000,000.00	Over three years	4.72
Total		371,920,210.97	—	54.86

by controlled Companies Greencool the of abbreviation the is" party third specific "term The Company the whom with ,companies above the through party controlling actual original the .outflows and inflows cash unusual of series a incurred

.year the of end the at as parties related from receivables other of details for 8 note see Please) 7(

Inventories 7.

inventories of Classification) 1(

	Closing balance
Item	Book value	Provision for declines value in	Carrying amount
Raw materials	355,829,763.12	30,884,089.84	324,945,673.28
in Works progress	158,031,735.66	8,685,770.52	149,345,965.14
Finished goods	2,516,821,812.70	75,191,675.31	2,441,630,137.39
Total	3,030,683,311.48	114,761,535.67	2,915,921,775.81

table above from Continued

	Opening balance
Item	Book value	Provision for declines value in	Carrying amount
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.

inventories of value in declines for Provision) 2(

			year the for	Closing balance
Inventories category	Opening balance	Provision for year the Reversal
Raw materials	32,058,972.28	219,608.99		1,394,491.43	30,884,089.84
Works progress in	8,635,165.22	57,792.31		7,187.01	8,685,770.52
Finished goods	71,404,437.45	34,584,546.53		30,797,308.67	75,191,675.31
Total	112,098,574.95	34,861,947.83		32,198,987.11	114,761,535.67

or reversal the for reasons and inventories of value in declines for provision the of Basis) 3( year the during off-write

Item	Basis the of provision for declines in of value inventories	Reasons for write the of off- provision for declines value in of inventories during year the
Raw materials in Works progress Finished goods	The lower cost the of net and realizable value	Removal due sales to

assets current Other 8.

Item	Closing balance	Opening balance
Others	287,019,824.65	248,628,217.20
Total	287,019,824.65	248,628,217.20

for retained tax added-value represent mainly others-assets current other :assets current other to Notes .deduction

assets financial sale-for-Available 9.

assets financial sale-for-Available) 1(

		Closing balance		Opening balance
Item	value Book	Impairment provision	Carrying amount	value Book	Impairment provision	Carrying amount
-Available equity sale-for
instrument	4,000,000.00		4,000,000.00	4,000,000.00		4,000,000.00
Including Measured : cost at	4,000,000.00		4,000,000.00	4,000,000.00		4,000,000.00
Total	4,000,000.00		4,000,000.00	4,000,000.00		4,000,000.00

the by held assets financial sale-for-available the All :assets financial sale-for-available to Notes .PRC in companies listed-non in investments are Company

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (assets financial sale-for-Available 9.

year the of end the at as cost at measured assets financial sale-for-Available) 2(

	value Book			Impairment provision
Investee	the At of beginning year the	for Increase year the	for Decrease year the	of end the At year the	the At of beginning year the	for Increase year the	for Decrease year the	of end the At year the	Shareholding investee the in (%)	dividend Cash current in year
Xinjiang Kelon Hisense Sales Electrical
Ltd .,Co ("XinjiangKelon (".	100,000.00			100,000.00					2.00
-Air Kelon Fujian .,Co Sales condition
Ltd ("Kelon Fujian (".	100,000.00			100,000.00					2.00
International Hisense .Ltd .,Co
Hisense(" ("International	3,800,000.00			3,800,000.00					12.67	9,500,000.00
Total	4,000,000.00			4,000,000.00					—	9,500,000.00

associates and ventures joint in Investments 10.

ventures joint in Investments) 1(

								:Unit 0000'RMB
Name investee of	type Entity	Registered place	Legal representative	Business nature	Registered capital	of % shareholding	voting of % rights	Accounting treatment
Hisense Whirlpool- (Zhejiang ( Electric Appliances .Ltd .,Co Hisense(" ("Whirlpool-	liability Limited company	Zhejiang	Yan Li	Industrial	45,000.00	50.00	50.00	method Equity
Hitachi Hisense	liability Limited company	Shandong	Shan Qing Gong	Industrial	\$46,000,000US	49.00	49.00	method Equity

associates in Investments) 2(

Name investee of	type Entity	Registered place	Legal representative	Business nature	Registered capital	of % shareholding	:Unit voting of % rights	0000'RMB Accounting treatment
Huayi Compressor Company Limited 3 ("Compressor Huayi("	stock Joint company	Jiangxi	Bin Ti Liu	Industrial	55,962.40	3.74	3.74	method Equity
Attend Co Logistics ") Attend (".Ltd .,	liability Limited company	Guangzhou	Wei Ye	Logistics Long	1,000.00	20.00	20.00	method Equity

:associates and ventures joint in investments to Notes

• and policies accounting significant the between difference significant no was There 1. .Company the of those and associates and ventures joint the of estimates accounting
• operation and production the :ventures joint over control joint of evidence of Illustration 2. of Articles the by required as parties the of management joint under are enterprise the of .venture joint the of Associations
• to Compressor Huayi of directors of board the on representatives has Company The 3. Huayi with transactions major has and processes making decision its in participate Company the that opinion the of is Company the of Board the ,Accordingly .Compressor Huayi recognize to continues and Compressor Huayi over influence significant has still .associate an as Compressor

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (associates and ventures joint in Investments 10.

ventures joint principal the of information financial Major) 3(

			:Unit	0000'RMB
	Closing	/balance	Opening	/balance
	Amount incurred	during	Amount	incurred during
	current	year	previous	year
	Hisense	Hisense	Hisense	Hisense
Item	Hitachi	Whirlpool	Hitachi	Whirlpool
Current assets	259,821.08	37,961.79	200,782.02	75,919.38
Including Cash : cash and equivalents	181,380.62	6,722.74	140,370.55	4,077.85
Non current- assets	40,554.98	36,222.75	32,495.95	37,991.79
assets Total	300,376.06	74,184.54	233,277.97	113,911.17
Current liabilities	97,777.20	39,884.46	96,539.54	71,602.11
Non current- liabilities	6,634.52
Total liabilities	104,411.72	39,884.46	96,539.54	71,602.11
Minority interests	6,138.85
Equity attributable to shareholders of
parent	189,825.49	34,300.08	136,738.44	42,309.06
Share asset net of measured in
proportion to shareholdings	93,014.49	17,150.04	67,001.83	21,154.53
Adjustment :for	2,965.78		3,353.29	(42.88)
— Goodwill
— Unrealized profits intra from
group transactions				(42.88)
others—	2,965.78		3,353.29
Carrying of amount investment in
equity joint of ventures	95,980.27	17,150.04	70,355.13	21,111.65
Fair of value investment equity in
joint of ventures with available
quoted price
Operating revenue	412,998.67	101,818.20	354,070.04	173,699.49
Financial expenses	(5,072.62)	(208.26)	(4,399.24)	(412.6)
Income expense tax	14,899.21		10,826.51
profit Net	71,087.05	(8,008.98)	60,821.59	94.82
Net from profit discontinued
operations
Other comprehensive income
Total comprehensive income	71,087.05	(8,008.98)	60,821.59	94.82
Dividend joint from ventures during
current year	8,820.00		7,350.00

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued (associates and ventures joint in Investments 10.

associates insignificant the of information financial Aggregate) 4(

Item	Closing Amount incurred current	/balance during year	:Unit Opening Amount incurred previous	0000'RMB /balance during year
:Associate	Huayi Compressor	Attend	Huayi Compressor	Attend
Total carrying of amount investments in Amounts aggregate in proportion the to shareholdings :	8,189.07	285.00	7,566.37	316.92
— profit Net Other— comprehensive income	700.07 (14.59)	(31.92)	602.97 1,928.91	(11.66)
Total— comprehensive income	685.48	(31.92)	2,531.88	(11.66)

investment equity term-Long 11.

:Whereas

	Investee	Accounting treatment	cost Investment	balance Opening	for Increase year the	for Decrease year the	balance Closing	Equity % held interest	voting % held rights	Impairment provision	Impairment in provided year the	dividend Cash
	Investment 1. ventures joint in
	Whirlpool-Hisense Equity	method	225,000,000.00	211,116,482.31		39,616,078.84	171,500,403.47	50.00	50.00
	Hitachi Hisense Equity	method	332,821,597.45	703,551,272.91	344,451,398.11	88,200,000.00	959,802,671.02	49.00	49.00			88,200,000.00
2.	associates in Investment
	Compressor Huayi Equity	method	24,171,468.64	75,663,702.46	6,854,807.98	627,855.18	81,890,655.26	3.74	3.74			627,855.18
	Attend	Equity method	2,000,000.00	3,169,216.09		319,175.64	2,850,040.45	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
Total			594,993,066.09	1,004,500,673.77	351,306,206.09	128,763,109.66	1,227,043,770.20			11,000,000.00		88,827,855.18

been not has it ,reorganization and liquidation in declared has ,Company the of subsidiary a ,Combine As 1* investment the for provided fully been has impairment and statements financial consolidated the in included ;cost

unlisted are Company the of associates and ventures joint the all ,Compressor Huayi for Execept ;companies

Item	Closing balance	Opening balance
Listed investment :
Equity method	81,890,655.26	75,663,702.46
Associate	81,890,655.26	75,663,702.46
Total	81,890,655.26	75,663,702.46
Non listed- investment :
Equity method	1,134,153,114.94	917,836,971.31
Joint venture	1,131,303,074.49	914,667,755.22
Associate	2,850,040.45	3,169,216.09
Total	1,134,153,114.94	917,836,971.31

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

properties Investment 12.

cost at measured properties Investment) 1(

			Increase for	Decrease for	Closing
Item		Opening balance	year the	year the	balance
1.	cost Total	68,676,129.02	13,650.00		68,689,779.02
	1. Buildings and structures	68,676,129.02	13,650.00		68,689,779.02
	Total 2. accumulated depreciation and
	amortization	34,729,821.27	2,500,541.34		37,230,362.61
	1. Buildings and structures	34,729,821.27	2,500,541.34		37,230,362.61
3.	net Total value book	33,946,307.75			31,459,416.41
	1. Buildings and structures	33,946,307.75			31,459,416.41
	Total 4. accumulated provision for impairment
	1. Buildings and structures
	Total 5. carrying amount	33,946,307.75			31,459,416.41
	1. Buildings and structures	33,946,307.75			31,459,416.41

properties investment to Notes) 2(

• for 2,500,294.34RMB and 2,500,541.34RMB to amounted 2014 for expense Depreciation) 1( 2013.
• .Company the by pledged were properties investment no 2014, December 31 at As) 2(
• for certificates ownership obtained not has Company the 2014, December 31 at As) 3( of depreciation accumulated 13,794,500,RMB of cost with properties investment 5,806,300.RMB of amount carrying net and 7,988,200RMB

:follows as are Breakdowns

Item	Carrying amount
King Mee Building	5,806,352.80
Total	5,806,352.80

• with Properties investment any identified not has Company the 2014, December 31 at As) 4( has provision no therefore and amount carrying its than lower amount recoverable the .impairment for made been
• Mainland the in located are structures and buildings all ,properties investment the Among) 5( .years 50 to 20 from ranging lives useful with China

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

assets Fixed 13.

assets fixed of Particulars) 1(

				,Furniture
		Buildings and	Machinery and	fixtures office and
Item		structures	equipment	equipment	vehicles	Moulds	Total
	balance	1,860,423,056.05	2,428,026,783.84	335,869,529.75	24,666,476.13	789,138,370.84	5,438,124,216.61
	year the in	164,766,577.34	532,889,100.60	70,081,280.42	5,237,908.22	363,444,225.27	1,136,419,091.85
	Purchase) 1(	10,627,820.43	133,312,950.71	39,500,567.29	3,153,796.42	220,551,869.26	407,147,004.11
	2( Transferred) from
	construction in
	progress	154,138,756.91	399,576,149.89	30,580,713.13	2,084,111.80	142,892,356.01	729,272,087.74
3.	year the in	95,137.00	165,878,736.49	28,742,938.70	1,330,847.20	76,724,421.85	272,772,081.24
	1( or Disposal)
							272,772,081.24
							6,301,771,227.22
							2,951,339,220.44
							469,230,864.51 469,230,864.51
							180,240,836.95
	1( or Disposal)
	retirement	29,851.71	104,555,481.04	20,070,379.32	1,100,579.15	54,484,545.73	180,240,836.95
	balance	873,554,957.30	1,466,982,418.66	247,494,269.88	15,163,173.04	637,134,429.12	3,240,329,248.00
	provision
	balance	34,115,252.48	76,756,452.43	1,324,472.60	431,332.41	5,656,793.52	118,284,303.44
	year the in		18,270,390.98	557,761.31	101,488.93	2,687,347.14	21,616,988.36
	Provision) 1(		18,270,390.98	557,761.31	101,488.93	2,687,347.14	21,616,988.36
3.	year the in		9,966,606.33	289,621.22	87,974.15	154,202.29	10,498,403.99
							10,498,403.99
							129,402,887.81
							2,368,500,692.73
							2,932,039,091.41
	3.	Cost 1. Opening 1. Additions 2. Reductions retirement Closing 4. balance ccumulated depreciation Opening 1. balance Additions 2. year the in Provision) 1( Reductions year the in Closing 4. mpairment Opening 1. Additions 2. Reductions 1( or Disposal) retirement Closing 4. balance Carrying 4. amount Opening 1. carrying amount Closing 2. carrying amount	95,137.00 2,025,094,496.39 794,197,087.83 79,387,721.18 79,387,721.18 29,851.71 34,115,252.48 1,032,110,715.74 1,117,424,286.61	165,878,736.49 2,795,037,147.95 1,404,726,603.11 166,811,296.59 166,811,296.59 104,555,481.04 9,966,606.33 85,060,237.08 946,543,728.30 1,242,994,492.21	28,742,938.70 377,207,871.47 230,760,617.71 36,804,031.49 36,804,031.49 20,070,379.32 289,621.22 1,592,612.69 103,784,439.44 128,120,988.90	Motor 1,330,847.20 28,573,537.15 13,094,063.27 3,169,688.92 3,169,688.92 1,100,579.15 87,974.15 444,847.19 11,141,080.45 12,965,516.92	76,724,421.85 1,075,858,174.26 508,560,848.52 183,058,126.33 183,058,126.33 54,484,545.73 154,202.29 8,189,938.37 274,920,728.80 430,533,806.77

to amounted progress in construction from transferred assets fixed the 2014, For .(583,422,723.55RMB 2013: (729,272,087.74RMB

• to amounted and 469,230,864.51RMB to amounted 2014 for expense Depreciation) 2( 2013. for 342,889,688.99RMB
• .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(
• .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 structure or building no ,year the of end the at As) 8(

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

progress in Constructions 14.

progress in constructions of Breakdown) 1(

		Closing balance			Opening balance
Item	value Book	Impairment provision	carrying Net amount	value Book	Impairment provision	carrying Net amount
Yangzhou Refrigerator	15,467,782.11		15,467,782.11	19,653,771.49		19,653,771.49
Chengdu Refrigerator	6,292,337.96		6,292,337.96	5,307,537.85		5,307,537.85
Air Kelon conditioner-	848,484.03		848,484.03	31,233,845.46		31,233,845.46
Air Shandong
conditioning	4,848,447.07		4,848,447.07	11,450,092.24		11,450,092.24
Shandong Refrigerator	91,572,755.37		91,572,755.37	147,536,731.20		147,536,731.20
Air Zhejiang
conditioning	34,548,485.95		34,548,485.95	2,797,744.76		2,797,744.76
Hisense Guangdong
Air Conditioner-	82,802,325.49		82,802,325.49
Others	22,942,172.84	7,770,917.67	15,171,255.17	47,323,670.85	11,325,835.67	35,997,835.18
Total	259,322,790.82	7,770,917.67	251,551,873.15	265,303,393.85	11,325,835.67	253,977,558.18

progress in construction of projects major in Movements) 2(

project of Name	Budget	balance Opening	for Increase year the	to Transferred assets fixed	Other reductions	Contribution % in	Progress budget	of Source funding	balance Closing
blister position Six machine package Yangzhou of Refrigerator	11,710,000.00	10,026,853.64	136,293.38	10,163,147.02			Completed 86.79	funding-Self
ferrule Automatic of drum the within machine washing Shandong of Refrigerator	21,410,000.00	15,332,250.00	77,691.51	15,409,941.51			Completed 71.98	funding-Self
dry 2 Phase of machine foaming Shandong Refrigerator	10,500,000.00	5,810,000.00	2,490,000.00	8,300,000.00			Completed 79.05	funding-Self
Power Shandong of cable Refrigerator	65,000,000.00	8,198,477.08		8,198,477.08			Completed 12.61	funding-Self
Production Shandong of line Refrigerator	50,850,000.00	4,846,154.00		4,846,154.00			Completed 9.53	funding-Self
punch OAK Kelon of presses -Air (units 2 (conditioner	10,196,728.10	9,208,988.09		9,208,988.09			Completed 90.31	funding-Self
of Plants Guangdong Hisense Conditioner-Air	261,460,000.00		17,707,714.85			6.77	completed Not	funding-Self	17,707,714.85
punch OAK Hisense of presses Guangdong Conditioner-Air (units 6(	31,039,362.50		29,098,702.50			93.75	completed Not	funding-Self	29,098,702.50
Technology for transformation production of equipment line Zhejiang conditioning-Air	21,531,850.20		21,531,850.20			100.00	completed Not	funding-Self	21,531,850.20
painting Spray gas natural and line pipeline Rongsheng of works Plastic		3,647,228.00			3,647,228.00
line Production Kelon Shangqiu of		7,770,917.67					Pending retirement	funding-Self	7,770,917.67
Others		200,462,525.37	819,728,346.12	673,145,380.04	163,831,885.85				183,213,605.60
Total		265,303,393.85	890,770,598.56	729,272,087.74	167,479,113.85				259,322,790.82

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued(progress in Constructions 14.

(continued (progress in construction of projects major in Movements) 2(

:progress in constructions in movements to Notes

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

progress in constructions of impairment for Provision) 3(

Items	Opening balance	Increase for year the	Decrease for year the	Closing balance	Reasons
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		3,554,918.00	7,770,917.67

assets Intangible 15.

assets intangible of Particulars) 1(

Item			rights use Land	Trademarks	how-Know	Others	Total
	Cost 1.
	1.	balance Opening	651,206,874.83	524,409,198.95	69,633,122.63	39,870,078.36	1,285,119,274.77
		Additions 2. year the in	159,079,243.80		53,712.54	20,848,857.92	179,981,814.26
		Purchase) 1(	159,079,243.80			20,848,857.92	179,928,101.72
		Internal) 2( and research
		development			53,712.54		53,712.54
		Reductions 3. year the in	1,943,455.00		266,057.95	3,510,706.63	5,720,219.58
		Disposal) 1(	1,943,455.00		266,057.95	3,510,706.63	5,720,219.58
	4.	balance Closing	808,342,663.63	524,409,198.95	69,420,777.22	57,208,229.65	1,459,380,869.45
2. A		ccumulated amortization
	1.	balance Opening	207,820,270.48	134,130,255.55	50,338,876.37	34,453,647.76	426,743,050.16
		Additions 2. year the in	15,599,516.89		5,816,462.82	5,494,048.07	26,910,027.78
		Provision) 1(	15,599,516.89		5,816,462.82	5,494,048.07	26,910,027.78
		Reductions 3. year the in	188,948.00		106,422.95	1,514,901.63	1,810,272.58
		Disposal) 1(	188,948.00		106,422.95	1,514,901.63	1,810,272.58
	4.	balance Closing	223,230,839.37	134,130,255.55	56,048,916.24	38,432,794.20	451,842,805.36
3. I		mpairment provision
	1.	balance Opening	50,012,843.19	286,061,116.40		519,447.21	336,593,406.80
		Additions 2. year the in
		Provision) 1(
		Reductions 3. year the in
		Disposal) 1(
	4.	balance Closing	50,012,843.19	286,061,116.40		519,447.21	336,593,406.80
	Carrying 4.	amount
		Closing 1. amount carrying	535,098,981.07	104,217,827.00	13,371,860.98	18,255,988.24	670,944,657.29
		Opening 2. amount carrying	393,373,761.16	104,217,827.00	19,294,246.26	4,896,983.39	521,782,817.81

:assets intangible to Notes) 2(

to compared 2014, for 26,910,027.78RMB to amounted assets intangible of Amortization) 1( 2013. in 21,973,498.51RMB of that

• .pledged were rights use land no ,year the of end the at As) 2(
• made was provision no and ,lives useful indefinite to due amortized not were Trademarks) 3( .impairment for tested after trademarks of impairment for

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

expenses prepaid term-Long 16.

Item	Opening balance	Additions in year the	Amortization in year the	Other deductions	Closing balance	Reasons for other deductions
Others	5,001,055.07	11,404,540.80	3,715,375.44	12,690,220.43
Total	5,001,055.07	11,404,540.80	3,715,375.44		12,690,220.43

the represented mainly others-expenses prepaid term-Long :expenses prepaid term-long to Notes .assets fixed the for expenses overhaul

liabilities tax deferred/assets tax Deferred 17.

.basis net a on presented are liabilities and assets tax Deferred

temporary taxable or deductible corresponding and liabilities or assets tax deferred of Net) 1( differences

Item	Net deferred of or assets tax at liabilities the the of end reporting period	Deductible taxable or temporary differences arising from offsetting deferred tax and assets at liabilities the the of end reporting period	Net deferred of tax or assets liabilities the at beginning the of reporting period	Deductible taxable or temporary differences arising from offsetting deferred tax and assets liabilities the at beginning the of reporting period
Deferred :assets tax
Provision assets for impairment	29,423,799.12	141,992,086.22	34,090,504.40	156,382,380.24
Financial held assets trading-for-	140,541.50	778,150.00	) 6,671,594.15	) ( 33,259,961.00 (
Others	77,249,007.61	466,938,900.24	9,197,950.77	50,657,563.61
Subtotal	106,813,348.23	609,709,136.46	36,616,861.02	173,779,982.85
Deferred tax :liabilities
Accelerated depreciation	165,600.70	1,104,004.67
Subtotal	165,600.70	1,104,004.67

liabilities and assets tax deferred offsetting of Details) 2(

Item	Amount for year the	Amount for previous year
Financial assets for-held trading-	140,541.50	) 6,671,594.15 (

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued(liabilities tax deferred/assets tax Deferred 17.

following in expire will assets tax deferred unrecognized for losses tax deductible The) 3( :timeframe

Year	Closing balance	Opening balance	Remark
2015	10,201,084.77	10,118,229.35
2016	2,957,949.57	6,552,610.10
2017	45,951,993.00	81,862,637.32
2018	39,470,505.84	51,479,787.23
2019	177,545,662.43
Infinite	43,922,092.59	50,760,547.10
Total	320,049,288.20	200,773,811.10

differences temporary deductible and taxable of Breakdown) 4(

Item	Amount
Financial assets for-held trading-	778,150.00
Provision bad for on debts accounts receivable	6,837,682.08
Provision for debts bad other on receivables	2,277,622.08
Provision for declines in of values inventories	74,520,994.29
Impairment provision fixed for assets	50,321,758.77
Impairment provision for intangible assets	8,034,029.00
Others	465,834,895.57
Total	608,605,131.79

borrowings term-Short 18.

category by borrowings term-Short) 1(

Item	Closing balance	Opening balance
1* Secured borrowings	253,985,142.45	191,681,513.02
Total	253,985,142.45	191,681,513.02

:borrowings term-short of categories the to Notes

the of activities factoring receivable accounts the by incurred borrowings secured the represented It 1* equivalent 250,383,247.66RMB were borrowings dollar US which of ,Company the of subsidiaries .amount equivalent 3,601,894.79RMB were borrowings Euro and ,amount

.due borrowings term-short outstanding no had Company the ,period the of end the at As) 2(

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

loss or profit through value fair at liabilities Financial 19.

Item	Closing balance	Opening balance
Financial liabilities for-held trading-	7,391,136.66	4,645.00
Including : Derivative financial liabilities	7,391,136.66	4,645.00
Total	7,391,136.66	4,645.00

:trading-for-held liabilities financial to Notes

by into entered contracts sale and settlement exchange forward outstanding the mainly represented It trading-for-held liabilities or assets financial the as recognized were which ,banks and Company the the and contracts forward outstanding the of price quotated the between difference the on based 2014. December 31 at as rates forward

payable Notes 20.

Category	Closing balance	Opening balance
Bank acceptance notes	970,754,476.87	1,235,561,696.44
Commercial acceptance notes	557,441,049.54	155,536,942.24

Total	1,528,195,526.41	1,391,098,638.68

:payable notes of Particulars

• more or 5% holding shareholders to due amount no were there 2014, 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 were there 2013, December .payable notes of balance the in Company the of shares voting the of
• .year the of end the at as due payable notes outstanding no were There) 2(
• .year the of end the at as parties related to payable notes of details for 8 note see Please) 3(

payable Accounts 21.

payable accounts of analysis Ageing) 1(

Ageing	Closing balance	Opening balance
Within year one	3,335,201,948.30	3,291,382,468.75
Over year one	130,652,635.30	189,127,899.41

Total	3,465,854,583.60	3,480,510,368.16
-------	------------------	------------------

(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 2014, 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 2013, December .payable accounts of balance the in Company the of shares voting the of
• .year the of end the at as parties related to payable accounts of details for 8 note see Please) 3(

customers from Advances 22.

customers from advances of analysis Aging) 1(

Ageing	Closing balance	Opening balance
Within year one	703,294,210.41	821,066,394.32
Over year one	62,587,165.44	85,965,112.53
Total	765,881,375.85	907,031,506.85

• (5% including (5% holding shareholders to due amount no was there 2014, December 31 at As) 2( As .customers from advances 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 2013, December 31 at .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

employee to payable Compensations 23.

:follows as listed are employee to payable Compensations) 1(

Item	Opening balance	Increase year the for	Decrease year the for	Closing balance
1. term-Short compensations	231,248,317.69	2,294,156,426.96	2,283,429,673.43	241,975,071.22
Post 2. employment- benefit defined-
contribution plans	2,783,860.71	188,924,223.03	188,005,323.22	3,702,760.52
3. Termination benefits	2,310,835.29	13,292,954.25	11,617,335.30	3,986,454.24
Total	236,343,013.69	2,496,373,604.24	2,483,052,331.95	249,664,285.98

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

(continued(employee to payable Compensations 23.

:follows as are compensations term-Short) 2(

Item		Opening balance	Increase year the for	Decrease year the for	Closing balance
	Wages 1. salaries and ,bonuses ,
	allowances and subsidies	224,568,904.93	1,946,751,199.58	1,936,814,268.43	234,505,836.08
2.	welfare Staff	4,960,834.65	139,994,279.41	140,780,240.59	4,174,873.47
	Social 3. insurance	650,722.91	98,251,161.71	97,819,245.59	1,082,639.03
	Including Medical : insurance	313,074.15	81,844,440.79	81,491,408.99	666,105.95
	related-Work injury
	insurance	234,628.21	7,938,487.55	7,866,559.90	306,555.86
	Maternity insurance	103,020.54	8,468,233.37	8,461,276.70	109,977.21
	Housing 4. provident funds	(309,613.38)	88,157,957.09	87,185,896.54	662,447.17
5.	union Labor and funds employee
	education funds	1,377,468.58	21,001,829.17	20,830,022.28	1,549,275.47
Total		231,248,317.69	2,294,156,426.96	2,283,429,673.43	241,975,071.22

:follows as are plans contribution Defined) 3(

Item		Opening balance	Increase year the for	Decrease year the for	Closing balance
	Basic 1. pension insurance	2,454,712.31	176,119,504.79	175,176,645.90	3,397,571.20
2.	Unemployment insurance	329,148.40	12,804,718.24	12,828,677.32	305,189.32
	Total	2,783,860.71	188,924,223.03	188,005,323.22	3,702,760.52

insurance unemployment and insurance pension basic the required as participates Company The :Note monthly makes Company the which to pursuant ,agencies government by operated schemes The .respectively salaries basic' employees of 0.50% and 12% at plans such to contributions corresponding The .contribution monthly above beyond obligations payment further no has Company .incurred as period the for asset relevant of cost or loss or profit the in included are expenses

:employee to payable compensations to Notes

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

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

payable Taxes 24.

Item		Closing balance	Opening balance
Value	tax added-	44,988,423.65	4,977,277.36
Business	tax	63,909.26	1,395,697.58
Enterprise	income tax	80,983,264.18	32,290,051.16
Individual	income tax	3,680,314.25	3,750,642.66
City	maintenance and construction tax	6,928,866.85	3,515,761.30
Real	tax estate	9,823,022.93	8,770,019.08
Land	tax use	4,997,247.57	4,976,487.69
	Education surcharges	4,652,099.25	2,450,605.56
	Embankment maintenance fee	3,281,842.31	1,956,979.56
Others		15,393,601.96	22,471,514.80
Total		174,792,592.21	86,555,036.75
Name		Closing balance	Opening balance
Yingleng	Group ( .Ltd .,Co)	2,067.02	2,067.02
Beijing	Xuehua Group Company Limited		9,000,000.00
Total		2,067.02	9,002,067.02
Other	payables
) 1(	Ageing analysis other of :payables
	Aging	Closing balance	Opening balance
	Within year one	1,328,493,785.03	1,513,321,725.49
	Over year one	407,091,120.75	217,937,328.91

including (5% holding shareholders to due amount no was there 2014, 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 2013, 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

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

574,037,292.42 680,022,633.56 Total

(continued(payables Other 26.

year one over due amounts significant of payables other of Particulars) 4(

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

liabilities current Other 27.

Item	Closing balance	Opening balance	Reasons the for balance
Installation fees	251,034,465.20	144,962,337.71	Installation fee provided not but for paid yet in of respect sold goods
Sales discounts	261,526,162.20	249,743,671.30	Incurred not but settled yet
Transportation fees	13,590,621.68	10,216,284.52	Incurred not but settled yet
fees Audit	3,683,021.26	3,437,719.64	Annual fee audit
Marketing fees	1,096,485.63	22,559,489.79	Incurred not but settled yet
Amounts payable	60,695,739.35	49,265,333.00	Incurred not but settled yet
fees Power	11,014,661.53	20,565,524.92	Incurred not but settled yet
Agency fees	21,579,061.96	5,079,051.90	Incurred not but settled yet
Others	55,802,414.75	68,207,879.64	Incurred not but settled yet

Provisions 28.

Item	Opening balance	Increase for year the	Decrease for year the	Closing balance
Pending litigation Provision for	4,627,597.15		10,067.50	4,617,529.65
warranties *	356,530,632.72	43,263,725.40		399,794,358.12
Total	361,158,229.87	43,263,725.40	10,067.50	404,411,887.77

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

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

income Deferred 29.

Closing balance	Opening balance
60,261,598.06	56,011,769.90
60,261,598.06	56,011,769.90

:follows as is income deferred the of Breakdown

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	1,475,000.00	1,925,000.00
Production capacity expansion and technology renovation
project low for carbon- energy , saving- chlorine , free-
refrigerator	2,146,666.67	2,426,666.67
Others	35,189,931.39	30,210,103.23
Total	60,261,598.06	56,011,769.90

capital Share 30.

Categories shares of	Opening balance	Increase year the for	Decrease year the for	Closing balance
Restricted floating shares subject
terms to up-lock of		710,325.00		710,325.00
Including Other : domestic shares
:Including held Shares domestic by
natural persons		710,325.00		710,325.00
Unrestricted floating shares subject not
terms to up-lock of	1,354,054,750.00	3,730,485.00		1,357,785,235.00
Including RMB : ordinary shares	894,464,942.00	3,730,485.00		898,195,427.00
Overseas foreign listed shares	459,589,808.00			459,589,808.00
Total number shares of	1,354,054,750.00	4,440,810.00		1,358,495,560.00

share the of exercise and conditions exercise the of fulfillment to attributable was year the for Changes of number total The .scheme option share first s'Company the of period exercise first the for options Yan Kuai Xiang Yue the by verified as 4,440,810, was option share of exercise the of result a as shares .Limited .Co CPA He Xiang Xin Guangdong by issued report Zi Yan 1238 .No] 2014 [Zi

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

reserve Capital 31.

reserve capital in Changes) 1(

Item	Opening balance	Increase year the for	Decrease year the for	Closing balance
Share premium	1,968,114,175.93	35,022,063.86		2,003,136,239.79
capital Other reserve	124,744,671.35	1,291,480.88	3,241,566.14	122,794,586.09
Total	2,092,858,847.28	36,313,544.74	3,241,566.14	2,125,930,825.88

:reserve capital to Notes) 2(

• from premium the to attributable mainly was year the for premium share in increase The) 1( .options share exercising
• amount the to attributable was year the for reserve capital other in increase The) 2( exercising to due was year the for decrease the; provided options share the for accounted .options share of

income comprehensive Other 32.

			incurred Amount year the in
Item		balance Opening	before Amount tax income year the for	Amount :Less other in included comprehensive in income period previous to transfered loss or profit period current in	income :Less expense tax	to Attributable tax after parent	Attributable minority to tax after interest	balance Closing
	Other 1. comprehensive income be not would that reclassified subsequently loss or profit to	(4,298,798.14)						(4,298,798.14)
	Including other of Share : comprehensive income investee of be not would that reclassified profit into under loss or
	method equity	(4,298,798.14)						(4,298,798.14)
	Other 2. comprehensive income be would that reclassified subsequently loss or profit to Including other of Share : comprehensive investee of income be would that	44,649,155.99	(359,473.40)			(359,473.40)		44,289,682.59
	reclassified profit into under loss or method equity	33,881,001.17	(145,901.32)			(145,901.32)		33,735,099.85
	arising Difference translation from financial of
	statements in presented currency foreign	10,768,154.82	(213,572.08)			(213,572.08)		10,554,582.74
	other Total comprehensive income	40,350,357.85	(359,473.40)			(359,473.40)		39,990,884.45

reserve Surplus 33.

Item	Opening balance	Increase year the for	Decrease year the for	Closing balance
Statutory surplus reserve	145,189,526.48			145,189,526.48
Total	145,189,526.48			145,189,526.48

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

profits Undistributed 34.

Item	for Ratio appropriation or distribution	Amount for year the	Amount for previous year
Undistributed profits the at of end
previous period		) 883,722,400.78	) ( 2,099,392,002.85 (
:Add Adjustment to undistributed profits the at beginning of year the
Undistributed profits the at beginning of
period the		) 883,722,400.78	) ( 2,099,392,002.85 (
Net :Add profits attributable the to
shareholders the of in parent
current period		) 672,478,632.35 (	1,215,669,602.07
:Less Appropriation of statutory surplus
reserve
Dividends payable on ordinary shares
Undistributed profits end the at the of
period		) 211,243,768.43	) ( 883,722,400.78 (

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	24,370,988,051.17	22,186,925,492.98
Revenue from other operations	2,163,432,884.38	2,173,095,815.49
Total operating revenue	26,534,420,935.55	24,360,021,308.47
of Costs principal operations	18,762,900,237.84	17,092,033,966.98
Costs other of operations	2,021,812,724.86	1,947,803,933.29
Total operating costs	20,784,712,962.70	19,039,837,900.27

(products by (operations Principal) 2(

	Amount	year the for		year previous
Products	Operating revenue	Operating costs	Operating revenue	Operating costs
1. Refrigerators washing and machines	11,864,028,175.03	9,268,105,140.56	11,984,925,209.88	9,212,730,537.38
Air 2. conditioners-	11,342,514,901.50	8,620,900,642.94	9,233,763,216.95	7,172,078,184.60
Others 3.	1,164,444,974.64	873,894,454.34	968,237,066.15	707,225,245.00
Total	24,370,988,051.17	18,762,900,237.84	22,186,925,492.98	17,092,033,966.98

(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	for Amount year previous
Region	Operating revenue	Operating costs	Operating revenue	Operating costs
Domestic	17,178,988,978.86	12,359,306,312.99	15,623,701,445.80	11,244,309,969.38
Overseas	7,191,999,072.31	6,403,593,924.85	6,563,224,047.18	5,847,723,997.60
Total	24,370,988,051.17	18,762,900,237.84	22,186,925,492.98	17,092,033,966.98

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

.No	Amount for year the	Percentage the of total revenue from principal operations the of Company (%)
1 Top	2,236,459,053.76	9.18
2 Top	1,599,754,219.75	6.56
3 Top	758,917,324.51	3.11
4 Top	667,484,614.40	2.74
5 Top	503,883,326.39	2.07
Total	5,766,498,538.81	23.66

surcharges and tax Business 36.

Item	Standard charge rate	Amount for year the	Amount for previous year
Business tax	5%	3,401,098.98	1,780,644.55
City maintenance and construction tax	1%-7%	56,341,133.10	56,879,211.19
Education surcharges	3%	36,796,529.02	38,714,646.12
Others		1,785,148.33	2,265,032.83
Total		98,323,909.43	99,639,534.69

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

expenses Financial 37.

Item	Amount for year the	Amount for previous year
Interest *expenses	15,003,224.16	572,549.35
Less Interest : incomes	3,791,604.77	3,164,480.55
Discounted notes		1,552,073.11
Exchange gain loss or	) 11,103,123.31 (	28,783,994.95
Others	) 4,074,683.90	) ( 55,218,524.13 (
Total	) 3,966,187.82	) ( 27,474,387.27 (

of term last the which of borrowings bank on interests wholly were 2013 and 2014 for expenses Interest* .years five within is repayment

assets on losses Impairment 38.

Item	Amount for year the	Amount for previous year
Bad 1. loss debt	2,146,769.82 )	101,659,694.95 (
2. in Decline of value inventories	34,861,947.83	28,449,803.89
3. Impairment loss fixed on assets	21,616,988.36	6,830,054.46

(66,379,836.60) 58,625,706.01 Total

value fair in changes from arising Gain 39.

Sources gain of arising from changes in value fair	Amount for year the	Amount for previous year
Financial assets for-held trading-	) 66,952,559.35 (	56,436,725.88
Including : from Gain changes fair in of value derivative
financial instruments	) 66,952,559.35 (	56,436,725.88
Financial liabilities for-held trading-	) 7,386,491.66 (	159,586.22
Total	) 74,339,051.01 (	56,596,312.10

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

gain Investment 40.

gain investment of Breakdown) 1(

Item	Amount for year the	Amount for previous year
from Gain available sale-for- financial assets during
holding period	9,500,000.00	4,750,000.00
from Gain term-long equity investment the under
equity method	311,516,852.93	299,785,829.53
from Gain disposal of term-long equity investment
from Gain disposal of financial at assets value fair
through profit loss or	54,484,302.09	19,153,785.48
Total	375,501,155.02	323,689,615.01

period holding during assets financial sale-for-available from Gain) 2(

Investee	Amount for year the	Amount for previous year
Hisense International Marketing	9,500,000.00	4,750,000.00
Total	9,500,000.00	4,750,000.00

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

Investee	Amount for year the	Amount for previous year
Huayi Compressor	7,000,709.29	6,029,708.70
-Hisense Whirlpool	) 39,616,078.84 (	1,297,493.73
Attend	) 319,175.63	) ( 116,634.72 (
Hisense Hitachi	344,451,398.11	292,575,261.82
Total	311,516,852.93	299,785,829.53

generated were which 7,000,709.29RMB of Compressor Huayi in investments from gain for Except :Note listed-non from generated all were 368,500,445.73RMB of gains other the ,investments listed from .investments

expenses operating-non and income operating-Non 41.

income operating-Non

Amount for year the	Amount for previous year
	12,010,056.34
	12,010,056.34
	82,700,643.38
	20,129,664.74
	1,623,453.29 1,623,453.29 82,298,890.90 40,439,809.75

114,840,364.46 124,362,153.94 Total

158

(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

:follows as are year the during grants government of Details

Item	Amount incurred during current year	Amount incurred during previous year
1. Government grants related assets to
Production technology reform project energy for saving-
1* household SBS size-large refrigerator	450,000.00	450,000.00
Production capacity expansion and technology renovation
project low for carbon- energy , saving- chlorine , free-
2* refrigerator	280,000.00	280,000.00
Government grants related other to assets	5,916,962.67	130,620.59
Subtotal	6,646,962.67	860,620.59
2. Government grants related income to
Government incentive awards		35,000,000.00
Tax on refund embedded softwares	17,903,091.50
Other government grants	57,748,836.73	46,840,022.79
Subtotal	75,651,928.23	81,840,022.79
Total	82,298,890.90	82,700,643.38

• 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 In .recognized was 450,000.00RMB of amount the in income 2013, In .recognized was 450,000.00RMB 1,475,000.00RMB still was there and ,recognized was 450,000.00RMB of amount the in income 2014, .recognition deferred to subject
• 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 upon income deferred as recognized were project the for grants government The 2012. in moulds intelligent after month the from amount the recognized has Mould Hisense 2012. August in Mould Hisense by receipt income recognized has Mould Hisense 2012, In .years 10 of period a over income operating-non as receipt of amount the in income 2013, In .year the for item the to relation in 93,333.33RMB of amount the in and , recognized was 280,000.00RMB of amount the in income 2014, In .recognized was 280,000.00RMB .recognition deferred to subject 2,146,666.67RMB still was there

(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.

expenses operating-Non

Item	Amount for year the	Amount for previous year
Total on loss disposal non of current- assets	3,967,010.86	11,713,968.79
Including on Loss : disposal fixed of assets	3,967,010.86	11,713,968.79
Others	1,424,162.07	5,822,748.41
Total	5,391,172.93	17,536,717.20

expense tax Income 42.

statement expense tax Income) 1(

Item	Amount for year the	Amount for previous year
Current income tax expenses	129,756,032.80	82,941,113.95
Including PRC : Enterprise income tax	125,223,500.64	74,776,381.83
Hong Kong tax profit	4,532,532.16	8,164,732.12
Deferred income tax expenses	) 70,030,886.51	) ( 29,322,173.00

53,618,940.95 59,725,146.29 Total

:follows as is expenses tax income and profit accounting of Reconciliation) 2(

Item	Amount for year the
Total profits	771,235,644.76
Income tax expense calculated at statutory or ( applicable rates tax)	192,808,911.22
of Effect application of different rate tax certain to subsidiaries	15,132,519.01
Adjustment income to in tax previous year	) 3,016,895.99 (
Effect non of taxable- income	) 103,501,024.79 (
Effect -non of deductible cost expense, loss and
of Effect utilization of deductible losses unrecognized as deferred tax
in assets previous period	) 14,291,022.69 (
of Effect deductible temporary difference or deductible loss unrecognized
as deferred assets tax current in period	) 27,407,340.47 (
Changes in opening of balance deferred assets tax liabilities/ arising from
changes rate tax in
Others
Income tax expense	59,725,146.29

(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
Net profits attributable to ordinary shareholders the of Company during the reporting period	1P	672,478,632.35	1,215,669,602.07
Non recurring- profit loss and attributable to ordinary shareholders the of Company the during reporting period	F	89,547,344.88	137,765,219.16
Net profits non after recurring- profit loss and attributable to ordinary shareholders the of Company during the reporting period	F1-P=2P	582,931,287.47	1,077,904,382.91
Effect dilutive of events net on profits attributable to ordinary shareholders the of Company	3P
Effect dilutive of events net on profits non after recurring- profit loss and attributable to ordinary shareholders the of Company	4P
Weighted average number of outstanding ordinary shares	S	1,356,645,223.00	1,354,054,750.00
Add Increase : the in weighted average of number ordinary shares assuming full conversion of dilutive potential ordinary shares into outstanding ordinary shares	1X
Weighted average of number ordinary shares for used calculation diluted of earnings share per	1X+S=2X	1,356,645,223.00	1,354,054,750.00
Basic earnings share per attributable to ordinary shareholders the of Company	S1/P=1Y	0.50	0.90
Basic earnings share per attributable to ordinary shareholders the of Company non after recurring- profit loss and	S2/P=2Y	0.43	0.80
Diluted earnings share per attributable to ordinary shareholders the of Company	P=(3Y 2X/)3P1+	0.50	0.90
Diluted earnings share per attributable to ordinary shareholders the of Company non after recurring- profit loss and	P=(4Y 2X/)4P2+	0.43	0.80

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

income comprehensive Other 44.

Item	Amount for year the	Amount for previous year
1. Recognition share of other of comprehensive income the of investee under equity method Less Income : effect tax arising from recognition of of share other comprehensive income the of investee under equity method	) 145,901.32 (	23,587,913.49
Net :Add amount included other in comprehensive income in previous period transferred profit to in loss or
current period		) 4,298,798.14 (
Subtotal	) 145,901.32 (	19,289,115.35
2. Difference arising from translation foreign of currency financial statements Net :Less amount transferred to or profit upon loss disposal foreign of operations current in period	) 213,572.08 (	228,648.92
Subtotal	) 213,572.08 (	228,648.92
Others 3. Less Income : effect tax arising other from items accounted other into comprehensive income Net amount other of items accounted other into comprehensive in income previous period transferred profit to loss or current in period
Subtotal
Total	) 359,473.40 (	19,517,764.27

activities operating to related receipt cash Other) 1(

Item	Amount for year the	Amount for previous year
Interest incomes	3,791,604.77	3,164,480.55
Government grants	75,651,928.23	81,840,022.79
Others	1,079,820,344.98	1,078,183,928.53
Total	1,159,263,877.98	1,163,188,431.87

activities operating to related payment cash Other) 2(

Item	Amount for year the	Amount for previous year
Cash payments for general and administrative expenses	428,633,158.96	418,170,115.12
Cash payments sales for expenses	2,886,030,649.19	1,997,419,348.86
Bank charges	11,475,903.16	8,486,756.11
Others	487,950,846.88	387,996,879.29
Total	3,814,090,558.19	2,812,073,099.38

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

statement flows cash to information Supplementary 46.

statement flows cash to information Supplementary) 1(

	Amount for	Amount for
Supplementary information	year the	previous year
1. R econciliation of profit net cash to flows from operating :activities
profit Net	711,510,498.47	1,245,793,922.54
:Add Provision assets for impairment	58,625,706.01	) 66,379,836.60 (
Depreciation fixed of assets	471,731,405.85	345,389,983.33
Amortization of intangible assets	26,910,027.78	21,973,498.51
Amortization of term-long prepaid expenses	3,715,375.44	1,382,115.88
on Loss disposal fixed of ,assets intangible assets and
other term-long assets	2,357,431.47	) 296,087.55 (
on Loss retirement fixed of assets
on Loss in change value fair	74,339,051.01	) 56,596,312.10 (
Financial expenses	15,003,224.16	572,549.35
Investment loss	) 375,501,155.02	) ( 323,689,615.01 (
Decrease in deferred assets tax	) 70,196,487.21	) ( 29,322,173.00 (
Increase in deferred tax liabilities	165,600.70
Decrease in inventories	) 419,561,921.35	) ( 757,918,744.31 (
Decrease in operating receivables	734,465,465.36 )	820,488,840.55 (
Increase in operating payables	) 267,573,764.80 (	658,377,889.04
Others
Net flows cash from operating activities	965,990,457.87	218,798,349.53
2. S ignificant investment and financing activities
not involving cash receipts and payments :
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	870,038,755.12	472,987,177.54
Less Cash : the at beginning of period the	472,987,177.54	513,661,376.53
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	397,051,577.58	) 40,674,198.99 (

equivalents cash and cash of Details) 2(

Item	Amount for year the	Amount for previous year
Cash 1.	870,038,755.12	472,987,177.54
Including Cash : hand on	10,000.00	2,857.60
Bank deposits that readily are available
for payment	870,028,755.12	472,984,319.94
Other at cash and bank hand on are that
readily available for payment
Cash 2. equivalents
Including Bond : investments within due three months
Cash 3. cash and equivalents the at as the of end period	870,038,755.12	472,987,177.54

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

(continued (STATEMENTS FINANCIAL CONSOLIDATED THE TO NOTES 7.

assets current Net 47.

Item	Closing balance	Opening balance
Current (assets consolidated (	8,041,116,973.67	7,990,704,892.00
Less Current : liabilities ( consolidated (	8,861,374,249.52	8,607,523,135.99
Net current (assets consolidated (	) 820,257,275.85	) ( 616,818,243.99 (
Current the (assets (parent	3,050,739,339.88	6,608,276,873.50
Less Current : liabilities the ( (parent	2,894,421,008.43	7,344,199,365.56
Net current the (assets (parent	156,318,331.45 )	735,922,492.06 (

liabilities current less assets Total 48.

Item	Closing balance	Opening balance
Total (assets consolidated (	13,266,793,963.74	12,208,030,858.33
Less Current : liabilities ( consolidated (	8,861,374,249.52	8,607,523,135.99
Total less assets current liabilities ( consolidated (	4,405,419,714.22	3,600,507,722.34
Total the (assets (parent	7,138,546,340.56	10,548,354,756.68
Less Current : liabilities the ( (parent	2,894,421,008.43	7,344,199,365.56
Total less assets current liabilities the ( (parent	4,244,125,332.13	3,204,155,391.12

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(

for Amount period current	Refrigerators and washing machines	conditioners-Air	Others	segment-Inter elimination	Total
from Revenue 1. sales external	11,864,028,175.03	11,342,514,901.50	1,164,444,974.64		24,370,988,051.17
from Revenue 2. segment-inter
transactions			1,167,709,264.45	) 1,167,709,264.45 (
Gain 3. investment from and associates in
ventures joint	(32,615,369.55)	344,451,398.11	(319,175.63)		311,516,852.93
Depreciation 4. amortization and	340,888,192.48	160,804,441.46	(1,268,122.29)		500,424,511.65
arising Gain 5. changes from value fair in	(31,515,479.90)	(29,910,879.16)	(12,912,691.95)		(74,339,051.01)
Impairment 6. assets on losses	23,811,177.70	36,884,260.65	(2,069,732.34)		58,625,706.01
Total 7. (losses (profit	139,168,506.62	522,949,903.74	163,603,402.85	(54,486,168.45)	771,235,644.76
Income 8. expense tax	37,156,783.38	3,668,910.35	18,899,452.56		59,725,146.29
profit Net 9. including) (loss ( minority
(interests	102,011,723.24	519,280,993.39	144,703,950.29	(54,486,168.45)	711,510,498.47
assets Total 10.	11,997,088,181.69	9,477,802,119.66	3,682,785,008.26 )	11,890,881,345.87 (	13,266,793,963.74
11. liabilities Total	8,145,845,933.47	7,351,150,477.03	2,394,229,900.30 )	8,565,012,974.75 (	9,326,213,336.05
Additions 12. other to current-non
than other assets equity term-long
investments	285,719,193.14	421,677,482.96	78,411,251.21		785,807,927.31

(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 Segment) 1(

table above from Continued

for Amount period previous	Refrigerators and washing machines	conditioners-Air	Others	segment-Inter elimination	Total
from Revenue 1. sales external	11,984,925,209.88	9,233,763,216.95	968,237,066.15		22,186,925,492.98
from Revenue 2. segment-inter
transactions			986,201,863.65	(986,201,863.65)
Gain 3. investment from and associates in
ventures joint	7,327,202.43	292,575,261.82	(116,634.72)		299,785,829.53
Depreciation 4. amortization and	204,680,483.80	114,091,722.01	48,591,276.03		367,363,481.84
arising Gain 5. changes from value fair in	27,143,109.62	24,405,843.08	5,047,359.40		56,596,312.10
Impairment 6. assets on losses	(13,980,679.21)	21,567,802.50	(73,966,959.89)		(66,379,836.60)
Total 7. (losses (profit	662,326,146.86	411,949,532.53	272,173,317.76	(47,036,133.66)	1,299,412,863.49
Income 8. expense tax	40,925,686.71	(5,394,304.31)	18,087,558.55		53,618,940.95
profit Net 9. including) (loss ( minority
(interests	621,400,460.15	417,343,836.84	254,085,759.21	(47,036,133.66)	1,245,793,922.54
assets Total 10.	10,600,650,219.34	7,872,553,097.96	3,877,044,915.72 )	10,142,217,374.69 (	12,208,030,858.33
11. liabilities Total	6,823,379,772.51	6,114,821,210.11	2,754,449,274.77	) 6,667,957,121.63 (	9,024,693,135.76
Additions 12. non other to assets current-
than other equity term-long investments	567,101,189.55	107,704,846.59	26,776,445.73		701,582,481.87

Information Geographic) 2(

Region	2014	2013
Revenue from domestic transactions	17,178,988,978.86	15,623,701,445.80
Revenues from overseas transactions	7,191,999,072.31	6,563,224,047.18
Total	24,370,988,051.17	22,186,925,492.98
Non current- — assets Domestic	5,212,995,836.79	4,202,897,397.03
Non current- — assets Overseas	12,681,153.28	14,428,569.30
Total	5,225,676,990.07	4,217,325,966.33

assets current-non s'Company the of Most .China Mainland in mainly operates Company The regional the of details further present to necessary not is it Therefore .China Mainland in are .information

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

TRANSACTIONS PARTY RELATED AND PARTIES RELATED 8.

parent the of Particulars 1.

(0000'RMB :Unit Amount(

of Name parent the	Relationship	of Category enterprise	Registration address	Legal representative	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 Controlling shareholder	wholly State owned-	Qingdao	Zhou Jian Hou	Entrusted operation state of owned ; assets manufacture of sales and household ,appliances communication products and of provision related services

table above from Continued

of Name parent the	Registered capital	Shareholding of parent the the in Company (%)	Voting of rights parent the the in Company (%)	Ultimate holding company the of Company	Organization code
Qingdao Hisense Air conditioning-	67,479	45.07	45.07	owned-State Assets Supervision and Administration Commission of Qingdao Municipal Government	61430651-4
Hisense Group	80,617			owned-State Assets Supervision and Administration Commission of Qingdao Municipal Government	16357877-1

see please ,Company the of ventures joint and associates ,subsidiaries the about information For 2. .(11)7 note and) 10(7 note 6, note

Companies Greencool 3.

Name related of parties of Greencool Companies	Relationship the with Company
Guangdong Greencool	Former controlling shareholder the of Company
Shenzhen Greencool Environmental	Related of party Guangdong Greencool
Shenzhen Greencool Technology	Related of party Guangdong Greencool
Greencool Procurement ( Shenzhen .Ltd .,Co) (" Shenzhen Greencool Procurement ("	Related of party Guangdong Greencool
Hainan Greencool	Related of party Guangdong Greencool
Jiangxi Greencool Electrical Appliance .Ltd .,Co Jiangxi(" Greencool ("	Related of party Guangdong 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	Relationship the with Company	Organization code
Hisense Finance .Ltd .,Co Hisense (" ") Finance	Subsidiary of ultimate holding company	71788291 x
Hisense Electric .Ltd .,Co	Subsidiary of ultimate	26462882- x
Hisense(" ("Electric	holding company
Shunde Yunlong Consultancy Service Limited	Minority shareholder of
Shunde(" Yunlong Consultancy ("	Huaao Electronics
Beijing Xuehua Group Company Limited	Minority shareholder of
Xuehua(" ("Group	Beijing Refrigerator
Beijing Embraco Snowflake compressor .Ltd .,Co (" Embraco ("	Associate Xuehua of Group
Hisense Hong ( ) Kong Company Limited	Subsidiary of ultimate
Hisense(" Hong ("Kong	holding company

outflows and inflows cash unusual or transactions of series a had Companies Greencool The 5. "Companies Party Third Specific "following the through

Name related of party	Relationship the with Company
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

(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(

			Amount	year the for	Amount	year previous for
	Particulars party related of	and Pricing making-decision of procedures party related		Percentage amount the of similar for transactions		Percentage amount the of similar for transactions
party Related	transactions	transactions	Amount	) %(	Amount	(%)
Whirlpool-Hisense	goods Finished	price Agreed	430,133,686.79	2.07	654,769,720.19	3.44
Electric Hisense subsidiaries its and	goods Finished	price Agreed	70,512.82		409,060.87
Group Hisense subsidiaries its and	goods Finished	price Agreed	2,284,666.67	0.01	167,413.33
Subtotal purchase of goods finished of			432,488,866.28	2.08	655,346,194.39	3.44
Compressor Huayi subsidiaries its and	materials Raw	price Agreed	757,992,072.20	3.65	792,876,108.54	4.16
Embraco	materials Raw	price Agreed	23,497,568.39	0.11	55,408,634.21	0.29
Whirlpool-Hisense	materials Raw	price Agreed	8,593,163.00	0.04	6,414,982.38	0.03
Hitachi Hisense	materials Raw	price Agreed	6,230,202.75	0.03	7,658,894.53	0.04
Group Hisense subsidiaries its and	materials Raw	price Agreed	16,672,758.10	0.08	12,297,129.49	0.06
Electric Hisense subsidiaries its and	materials Raw	price Agreed	22,214,693.81	0.11	21,045,309.18	0.11
Subtotal purchase of materials raw of			835,200,458.25	4.02	895,701,058.33	4.69
Group Hisense subsidiaries its and	Moulds	price Agreed			44,097.00
of Subtotal moulds of purchase					44,097.00
Group Hisense subsidiaries its and	services of Receipt	price Agreed	395,453,887.87	1.9	314,008,392.57	1.65
Group Xuehua	services of Receipt	price Agreed	1,485,040.46	0.01	18,464,451.09	0.1
Electric Hisense subsidiaries its and	services of Receipt	price Agreed	9,996,984.51	0.05	9,037,818.74	0.05
of Subtotal services of receipt			406,935,912.84	1.96	341,510,662.40	1.8
Kong Hong Hisense	purchase Financing		213,244,123.52	1.03	145,231,385.68	0.76
of Subtotal purchase financing			213,244,123.52	1.03	145,231,385.68	0.76

(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 2013. November 21 on Agreement Framework Cooperation and purchaser the as Company the with transaction the ,agreement the of period of) tax added-value of exclusive (cap aggregate an to subject was services of recipient 570,040,000.RMB
• (II (Agreement Framework Business a into entered Whirlpool Hisense and Company The) 2( with transaction the ,agreement the of period effective the During 2013. November 21 on cap aggregate an to subject was services of recipient and purchaser the as Company the 1,257,730,000.RMB of) tax added-value of exclusive(
• on) I (Agreement Framework Business a into entered Hitachi Hisense and Company The) 3( with transaction the ,agreement the of period effective the During 2013. November 21 added-value of exclusive (cap aggregate an to subject was purchaser the as Company the 20,080,000.RMB of) tax
• Framework Purchase Financing a into entered Kong Hong Hisense and Company The) 4( the ,agreement the of period effective the During 2013. November 21 on Agreement financing 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 fifth the at approved and considered were agreements above The and 2013 November 21 on convened 2013 in directors of board the of session eighth s'Company .respectively 2014 January 10 on convened 2014 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		Amount year previous for
	Particulars party related of	and Pricing making-decision of Procedures party related		Percentage amount the of similar for transactions		Percentage amount the of similar for transactions
party Related	transactions	transactions	Amount	) %(	Amount	(%)
Electric Hisense subsidiaries its and	goods Finished	price Agreed	4,745.21		102,569.92
Whirlpool-Hisense	goods Finished	price Agreed			146318.87
Hitachi Hisense	goods Finished	price Agreed	41,950,005.66	0.16	70,899,684.46	0.29
Group Hisense subsidiaries its and	goods Finished	price Market	1,782,987,606.97	6.72	2,630,872,809.89	10.8
sale of Subtotal product finished of			1,824,942,357.84	6.88	2,702,021,383.14	11.09
Whirlpool-Hisense	materials Raw	price Agreed	12,300,354.33	0.05	21,528,464.60	0.09
Group Hisense subsidiaries its and	materials Raw	price Agreed	12,317,816.40	0.05	8,650,148.96	0.04
Hitachi Hisense	materials Raw	price Agreed	1,178,388.59		1,390,888.76	0.01
Electric Hisense subsidiaries its and	materials Raw	price Agreed	592,472.70		4,175,791.11	0.02
Compressor Huayi subsidiaries its and	materials Raw	price Agreed	2,085,169.42	0.01
sale of Subtotal materials raw of			28,474,201.44	0.11	35,745,293.43	0.16
Group Hisense subsidiaries its and Hitachi Hisense	Mould equipment and Moulds	price Market price Market	208,313,517.39 7,523,076.91	0.79 0.03	182,374,253.98 118,803.43	0.75
Whirlpool-Hisense	Mould equipment and	price Market	4,196,474.36	0.02	7,139,646.13	0.03
Electric Hisense subsidiaries its and	Moulds	price Market	71,042,006.08	0.27	72,330,708.33	0.3
Subtotal moulds of sale of			291,075,074.74	1.11	261,963,411.87	1.08
Attend		price Agreed	3,600.00
Whirlpool-Hisense		price Agreed	2,970,942.16	0.01	2,710,938.24	0.01
Group Hisense subsidiaries its and		price Agreed	5,129,018.69	0.02	2,455,623.42	0.01
Subtotal rendering of services of			8,103,560.85	0.03	5,166,561.66	0.02

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

(continued (TRANSACTIONS PARTY RELATED AND PARTIES RELATED 8.

(continued(transactions party Related 6.

(continued (service of rendering/goods of Sale) 2(

• Business a into entered Group Hisense of subsidiaries related and Company The) 1( period effective the During 2013. November 21 on Agreement Framework Cooperation provider service and supplier the as Company the with transaction the ,agreement the of 3,433,960,000.RMB of) tax added-value of exclusive (cap aggregate an to subject was
• Agreement Framework Business a into entered Whirlpool Hisense and Company The) 2( transaction the ,agreement the of period effective the During 2013. November 21 on) II( cap aggregate an to subject was provider service and supplier the as Company the with 86,100,000.RMB of) tax added-value of exclusive(
• on) I (Agreement Framework Business a into entered Hitachi Hisense and Company The) 3( the with transaction the ,agreement the of period effective the During 2013. November 21 exclusive (cap aggregate an to subject was provider service and supplier the as Company 273,500,000.RMB of) tax added-value of

the of meeting interim fifth the at approved and considered were agreements above The and 2013 November 21 on convened 2013 in directors of board the of session eighth s'Company .respectively 2014 January 10 on convened 2014 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) 3(

Guarantor	Guaranteed party	Amount (0000'RMB(	Inception date guarantee of	date Expiry guarantee of	of Nature guarantee	of Execution is guarantee completed not or
Hisense Group	Shandong Refrigerator	1,205.64	2013-4-25	2015-1-23	letter Import credit of	No
Hisense Group	Shandong Refrigerator	373.35	2013-4-25	2015-3-22	Domestic letter credit of	No
Hisense Group	Air Shandong conditioning	80	2014-9-2	2015-3-31	Bank guarantee	No
Subtotal		1,658.99	—	—

:guarantees party related to Notes

• branch Qingdao of department business the and Group Hisense 2013, April In) 1( .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.
• Qingdao of department business the and Group Hisense 2014, August In) 2( .No (Contract Guarantee Maximum a into entered Bank Agricultural of branch guarantee provide would Group Hisense which to pursuant ,)84100520140001566 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 18 to 2014 August 11 from period the during Bank Agricultural of branch Qingdao 2014. November
• branch Qingdao of branch-sub Road Shandong and Group Hisense 2013, October In) 3( .No (Contract Guarantee Maximum a into entered Bank Commercial and Industrial of would Group Hisense which to pursuant ,)0043 .No Zi)Bao(Ye Ying 38030201-2013 of limit credit maximum the under liabilities the for securities guarantee provide by conditioning-Air Shandong with businesses various from arising 150,000,000RMB during Bank Commercial and Industrial of branch Qingdao of branch-sub Road Shandong 2014. September 18 to 2013 October 10 from period the
• of deposit of balances had subsidiaries its and Company the 2014, December 31 at As) 4( with 621,484,700RMB of payable notes and 0,RMB of loans bank 698,828,900,RMB to amounted Finance Hisense to paid interests loan ,year the For .Finance Hisense fees handling and 0, to amounted notes discounted of respect in paid interests 0,RMB the for Finance Hisense from received income Interest 1,304,300.RMB to amounted paid services sales and settlement exchange of Provision 3,200,300.RMB to amounted deposits .year the for 222,595,800RMB to amounted Finance Hisense by

(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
			Provision for		Provision for
Item	Related party	value Book	debts bad	value Book	debts bad
Notes receivable	Hisense Electric its and subsidiaries	1,777,900.00
Notes receivable	Hisense Group its and subsidiaries	7,742,513.97
	Subtotal	9,520,413.97
Accounts receivable	Hisense Electric its and subsidiaries	5,369,800.07		8,310,815.47
Accounts receivable	Hisense Group its and subsidiaries	425,687,562.52	863,752.76	261,146,292.16	830.04
Accounts receivable	Hisense Whirlpool-	2,433,508.67		6,612,890.57
Accounts receivable	Hisense Hitachi	6,246,024.20		12,091,751.26
	Subtotal	439,736,895.46	863,752.76	288,161,749.46	830.04
Notes receivable	Hisense Group its and subsidiaries			11,349,514.97
	Subtotal			11,349,514.97
Other receivables	Shunde Yunlong Consultancy			4,455,375.57	4,455,375.57
Other receivables	Hisense Electric its and subsidiaries	163,006.00		33,670.00
Other receivables	Hisense Group its and subsidiaries	158,946.20		446,694.81
Other receivables	Hisense Whirlpool-	7,237,588.19		11,122,562.09
Other receivables	Xuehua Group its and subsidiaries	7,200,000.00
	Subtotal	14,759,540.39		16,058,302.47	4,455,375.57
Prepayments	Hisense Group its and subsidiaries	1,119,996.81		448,053.16
	Subtotal	1,119,996.81		448,053.16

(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
Accounts payable	Huayi Compressor its and subsidiaries	182,978,262.08	174,056,225.97
Accounts payable	Embraco	8,609,219.66	18,578,321.11
Accounts payable	Hisense Group its and subsidiaries	30,670,272.38	34,213,685.77
Accounts payable	-Hisense Whirlpool	141,394,148.65	235,546,646.15
Accounts payable	Hisense Hitachi	1,592.78	1,323.34
Accounts payable	Hisense Electric its and subsidiaries	8,396.50	38,336.76
Subtotal		363,661,892.05	462,434,539.10
Other payables	Hisense Group its and subsidiaries	2,852,656.51	390,870.01
Other payables	Huayi Compressor its and subsidiaries	1,500,000.00	600,000.00
Other payables	Embraco	100,000.00	100,000.00
Other payables	Combine	5,099,880.00	5,099,880.00
Other payables	-Hisense Whirlpool	200,000.00
Other payables	Xuehua Group its and subsidiaries		629,794.63
Subtotal		9,752,536.51	6,820,544.64
Advances	Hisense Hitachi		8,589,916.67
Advances	Hisense Group its and subsidiaries	1,769,699.72	491,778.44
Advances	Hisense Electric its and subsidiaries	933,000.00
Subtotal		2,702,699.72	9,081,695.11

(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 party	At end the of year the Book value	the At beginning of year the Book value
Accounts receivable	Hefei Weixi		18,229,589.24
	Wuhan Changrong		20,460,394.04
Subtotal of accounts receivable			38,689,983.28
Prepayments	Hefei Weixi		465,213.00
Subtotal of prepayments			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
	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	2,000,000.00	4,000,000.00
	Shangqiu Bingxiong	58,030,000.00	58,030,000.00
Subtotal other of receivables		291,989,412.17	293,989,412.17
Other payables	Zhuhai Longjia	28,316,425.03	28,316,425.03
	Zhuhai Defa		7,362,170.00
	Tianjin Taijin	65,000,000.00	65,000,000.00
Subtotal other of payables		93,316,425.03	100,678,595.03

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

(continued (TRANSACTIONS PARTY RELATED AND PARTIES RELATED 8.

Companies Greencool with Transactions 9.

Item	Related party	At end the of year the Book value	the At beginning of year the Book value
Other receivables	Guangdong Greencool		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		77,289,357.71	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	) 1,950,085.26 (
Total equity instruments exercised during period the Total equity instruments expired during period the	33,972,196.50
of Range exercise price share of options outstanding and remaining contractual term the as of end period the	Exercise price share of options was 7.65,RMB with remaining contractual of term days 242
of Range exercise price other of equity instruments and remaining contractual term the at as of end period the
Equity settled share based- payments
Item	Amount for year the
Determination on value fair equity of instruments date the at grant of	value Fair share of options granted the under Scheme calculated using by Black the
Determination on best the estimate the of number of exercisable equity instruments	Scholes option pricing model Determined taking by account the number participants expected , share options and performance
for significant discrepancies between estimates current of and period previous period	into the of of gain assessment of participants etc , No
Reasons Accumulated amount equity of settled share based- payments in capital reserve	9,009,476.23

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

(continued (PAYMENT BASED-SHARE 9.

services based-Share 3.

Item	Amount for year the
Total of amount employee services received in exchange share for based payments	9,009,476.23
Total amount other of services received in exchange share for based- payments

granted Shares 4.

Category	Exercise price	Outstanding at as January 1 2014	Transferred from/to other categories during year the	Lapsed during year the	Exercised during year the	Expired during year the	Outstanding at as December 31 2014
Directors	7.65RMB	2,989,000			689,040		2,299,960
Senior management	7.65RMB	2,484,000			258,060		2,225,940
Other management	7.65RMB	9,369,000		416,100	3,493,710		5,459,190
Total		14,842,000		416,100	4,440,810		9,985,090

share of grant the of respect in registration the completed has Company the of directors of board The Company Holdings Electrical Kelon Hisense of Scheme Incentive Option Share First the under options 28 on Company the of meeting general the at granted authorization the under") Scheme "the (Limited :follows as are information basic the and 2011, September

• 2011 August 31 :grant of Date) 1(
• .share per 7.65RMB :price Exercise) 2(
• 1JLC Hisense :abbreviation Option) 3(
• 037018 :code Option) 4(
• period up lock a to subject ,grant of date the from years five for valid are options share The) 5( within installments equal in options their exercise may participants incentive The .years 2 of total the of 34% and 33% 33%, with ,grant of date the of anniversary third the from years 3 .year each exercisable being granted options
• the of exclusive (Company the of directors the :include may participants incentive The) 6( Group Hisense with working not are who directors external the and directors independent financial ,president vice ,president including (management senior ,)company liability Limited management senior as regarded officers other and secretary company ,secretary board ,controller Company the of staff management level-mid ,Company the of) Association of Articles the under .determine may Board the as personnel technical core and ,subsidiaries its and
• and themselves by raised be shall participants the by options share exercising for fund The) 7( the to assistance financial of kind other any or borrowings provide not shall Company the .(borrowings their for guarantee including (Scheme the under participants
• with filed ,Qingdao of SASAC the by approved and reviewed been has scheme option share The) 8( objection 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 shares of number the and ,participants to adjustment on resolution the 2013, October 18 On meeting interim fourth the at passed was Company the of scheme incentive option share first the under .options share 4,668,000 cancel to 2013 in directors of board the of session eighth s'Company the of .scheme the under granted options share 14,842,000 were there ,adjustment the Upon

incentive option share phase first the of period exercise first the for exercise to conditions the 2013, In s'Company the of meeting interim fourth the at approval Upon .fulfilled were Company the of scheme share their exercised all participants eligible 163 2013, in directors of board the of session eighth at total in options share exercisable 4,897,860 were there and ,period exercise first the during options their exercised Company the of participants eligible 148 2014, May In 7.65.RMB of price exercise the 9 ,options share exercise to phase first the During .exercised options share 4,440,810 with options share Company the of directors of Board .incentive option share this for eligible longer no were participants 31 at As .accordingly options share 416,100 cancel and participants 9 above the disqualify to decided .outstanding yet granted Company the of options share 9,985,090 were there 2014, December

CONTINGENCIES 10.

impact financial their and litigations pending from arising liabilities Contingent 1.

:follows as summarized are Company the involving litigations pending the 2014, December 31 at As

Plaintiff	Defendant	Causes	Total amount involved
The Company	Beijing Diamond Advertising .Ltd .,Co	Dispute over advertising contract	5,000,000.00
The Company its and subsidiaries	Others		16,570,000.00

21,570,000.00 Total

plaintiff the as Company the with Cases) 1(

defendant the as Company the with Cases) 2(

Plaintiff	Defendant	Causes	Total amount involved
Supplier raw of materials	The Company	Dispute sale over and purchase contract and processing contract	3,630,431.30
Others	The Company	Labor dispute and others	16,352,063.34
Total			19,982,494.64

(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 became and Company the of favor in was judgment the which for Cases) 3( executed yet

Plaintiff	Defendant	Causes	Total amount involved
The Company	Shangqiu Kelon	Default goods in payment	25,660,900.00
Total			25,660,900.00

along payment goods the repay to defendants the requested Company the that represented It taken has judgment civil the which for ,fees litigation the all bear and interests accrued the with .effect

EVENTS SIGNIFICANT OTHER 11.

value fair at measured liabilities and Assets 1.

Item	Opening balance	Amount of financial assets	Gain loss or from change in value fair	Impairment provision for year the	Closing balance
Financial assets
Derivative financial
assets	67,115,019.35	162,460.00 )	66,952,559.35 (		162,460.00
of Subtotal financial assets	67,115,019.35	162,460.00 )	66,952,559.35 (		162,460.00
Derivative financial
liabilities	4,645.00)	) ( 7,391,136.66	) ( 7,386,491.66 (		) 7,391,136.66 (
of Subtotal financial
liabilities	4,645.00)	) ( 7,391,136.66	) ( 7,386,491.66 (		) 7,391,136.66 (

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

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

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued(policies and objectives management risk Financial 2.

rate interest ,risk liquidity ,risk credit :include instruments financial above the to respect with Risks .risk currency foreign and risk

risk Credit) 1(

failure the to due losses financial on to exposed is Company the which to risk the is risk Credit mainly ,obligations contractual their fulfill to counterparties instrument financial or clients of .derivative financial and receivables other and trade ,balances bank to respect with

banks state large major several in balances bank its of all substantially maintains Company The are assets these believes Board the ,state the from banks those to support strong With .PRC in .losses financial cause would that risk credit significant to exposed not

dealing by receivables other and trade of respect in risks to exposure its mitigates Company The required are customers new Certain .positions financial healthy with customers diversified with seeks Company The .risk credit minimise to order in payment cash make to Company the by to policy control credit a has and receivables outstanding its over control strict maintain to and basis ongoing an on monitored are balances receivable all ,addition In .risk credit minimize .management senior by up followed are balances overdue

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(

and cash maintains and monitors Company the ,risk liquidity of management the of respect In finance to ,views of point s'management the in ,adequate is which level a at equivalents cash The .flows cash in fluctuations term-short of effects the mitigate and operations s'Company the of continuity between balance a maintaining for responsible is department treasury s'Company liquidity s'Company the meet to order in credit bank of use the through flexibility and funding .requirements

of review detailed a out carried have directors the ,risk liquidity the mitigate to order In ,payables other and accounts its of profile maturity including ,Company the of liquidity the concluded is it and ,Finance Hisense by provided financing loan and borrowings of availability capital and obligations term-short its fulfill to funding adequate has Company the that .requirements expenditure

risk rate Interest) 3(

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 liabilities financial bearing-interest whereas nature in term-short mostly are which ,banks with term-short s'Company the 2014, December 31 at As .borrowings bank term-short primarily are accounts factored were borrowings s'Company the all As .rate fixed at were borrowings bank the on impact significant have to considered not is rate interest the in change any ,receivable .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 respect with 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 in fluctuation is there and ,pegged not are EUR and JPY ,USD ,HKD ,RMB between rates .EUR and JPY ,USD ,RMB between rates exchange

foreign in denominated liabilities and assets monetary s'Company the of amounts carrying The :follows as are period reporting of end the at currencies

Currency	Closing balance		Opening balance
	Assets	Liabilities	Assets	Liabilities
USD	820,825,155.22	293,087,628.93	1,021,163,328.28	59,472,179.79
EUR	36,886,178.77	4,099,568.80	382,080,146.63	3,624,342.09

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

	2014	2013
	/Increase Decrease	/Increase Decrease
Item	profit in tax after	profit in tax after
USD RMB to
Appreciates 5% by	19,790,157.24	36,063,418.07
Depreciates 5%by	) 19,790,157.24	) ( 36,063,418.07 (
EUR RMB to
Appreciates 5%by	1,229,497.87	14,192,092.67
Depreciates 5%by	) 1,229,497.87	) ( 14,192,092.67 (

:rate forward in change of analysis Sensitivity

Item	2014 /Increase Decrease profit in tax after	2013 /Increase Decrease profit in before tax
USD RMB to
Appreciates 5%by	) 12,480,000.00	) ( 15,187,500.00 (
Depreciates 5%by	12,480,000.00	15,187,500.00
EUR RMB to
Appreciates 5%by	) 881,250.00	) ( 1,408,387.50 (
Depreciates 5%by	881,250.00	1,408,387.50

(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 Company 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 2013. December 31 and 2014 December 31 ended years the during

capital total the by divided debt net is which ,ratio gearing a using capital monitors Company 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	2014	2013
Total debt	9,326,213,336.05	9,024,693,135.76
Including Short : term- borrowings	253,985,142.45	191,681,513.02
Accounts payable	3,465,854,583.60	3,480,510,368.16
Notes payable	1,528,195,526.41	1,391,098,638.68
Other payables	1,735,584,905.78	1,731,259,054.40
Less Cash : cash and equivalents	870,038,755.12	472,987,177.54
debt Net	8,456,174,580.93	8,551,705,958.22
Equity attributable to shareholders parent of	3,458,363,028.38	2,748,731,080.83
Capital and debt net	11,914,537,609.31	11,300,437,039.05
Gearing ratio	70.97%	75.68%

(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

2014 December 31 at As) 1(

				:Unit	0000'RMB
		Emoluments
		of		Pension
		independent	Salaries and	scheme
Name	Position	director	allowances	contributions	Total
Executive director
Tang Guo Ye	Chairman		96.1	3.87	99.97
Min Shu Yu	Director				—
Lan Lin	Director				—
Xiao Lin Jian	Director		85.22	3.37	88.59
Ye Tian	and Director President		133.59	3.87	137.46
Huang Jian Xiao	and Director
	Vice president-		98.18	2.16	100.34
Jia Qian Shao	Vice president-		68.86	3.22	72.08
Ren Li Ren	Former and director
	former president		50.59	3.76	54.35
Gan He Yong	Former and director
	vice former president-		25.39	0.22	25.61
Zhang Qing Yu	vice former president-		76.04	3.87	79.91
Wang Li Yun	vice former president-		90.43	3.84	94.27
Independent
non executive-	director
Yi Xiang Xu	Independent
	non executive- director	9			9
Wang Guo Ai	Independent
	non executive- director	9			9
Wang Yu Xin	Independent
	non executive- director	24			24
Supervisor
Liu Shun Zhen	of Chairman Supervisory Committee
Peng Shu	Supervisor		26.03	0.69	26.72
Ling Yu Gao	Supervisor
Zhang Jun Jian	Former supervisor		30.22		30.22
Total		42	780.65	28.87	851.52

:Notes

• to inducement an as directors the to Company the by paid were emoluments no ,year the During) 1( the of directors the of None .office of loss for compensation as or Group the joining upon or join .year the during emoluments any waive to agreed or waived has Company
• the of president as and 2014 June in Company the of director as appointed was Ye Tian .Mr) 2( in Company the of president vice as appointed was Jian Xiao Huang .Mr; 2015 March in Company 10 on appointed was Shun Zhen Liu .Mr; 2014 June in Company the of director as and 2014 March in appointed was Peng Shu .Mr; 2014 January 10 on appointed was Ling Yu Gao .Ms; 2014 January . 2015 January

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

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued(emoluments' supervisors and Directors 4.

2013 December 31 at As

				:Unit	0000'RMB
Name	Position	Emoluments of independent director	Salaries and allowances	Pension scheme contributions	Total
Executive director
Tang Guo Ye	Chairman		97.64	2.28	99.92
Min Shu Yu	Director
Lan Lin	Director
Xiao Lin Jian	Director
Ren Li Ren	and Director President		86.46	2.13	88.59
Gan He Yong	and Director
	Vice president-		137.94	1.75	139.69
Independent
non executive- director
Yi Xiang Xu	Independent non executive-
	Director	9			9
Wang Guo Ai	Independent non executive-
	Director	9			9
Wang Yu Xin	Independent non executive-
	Director	24			24
Supervisor
Liu Shun Zhen	of Chairman Supervisory
	Committee
Zhang Jun Jian	Employee representative
	supervisor		33.77		33.77
Ling Yu Gao	Supervisor
Guo Cun Qing	Former supervisor
Liu Yan Jiang	Former supervisor
Total		42.00	355.81	6.16	403.97

:Note

or join to inducement an as directors the to Company the by paid were emoluments no ,year the During) 1( has Company the of directors the of None .office of loss for compensation as or Group the joining upon .year the during emoluments any waive to agreed or waived

January 10 on appointed was Ling Yu Gao .Ms; 2014 January 10 on appointed was Shun Zhen Liu .Mr) 2( 2014. January 10 on resigned Yan Jiang Liu .Ms; 2014 January 10 on resigned Cun Qing Guo .Mr; 2014

(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) two 2013: (four 2014, In as is) three 2013: (individual one other the of respect in emoluments the of aggregate The below were emoluments their all 2014, for emoluments of range the of respect in (follows 2 of emoluments 2013, for emoluments of range the of respect in and; 1,000,000RMB was individual one of those and 1,500,000, below and 1,000,000RMB exceeded individuals :(1,000,000RMB below

		:Unit 0000'RMB
Item	Amount for current period	Amount for previous period
Emolument	94.27	350

emoluments personnel management Key 5.

		:Unit 0000'RMB
Item	2014	2013
Salaries other and term-short employee benefits	130.04	931.7
Retirement benefit scheme costs	4.56	27.34
Total	134.6	959.04

scheme benefit Retirement 6.

,scheme pension contribution defined a to mainly contributes subsidiaries its and Company The its and Company the of employees of respect in ,government provincial the by administered is which to contributions make shall subsidiaries its and Company the ,scheme such to According .subsidiaries .employees their of wages and salaries total the of percentage certain at fund pension the

2013:) 375,333,300RMB of approximately loss or profit the to charged costs total The subsidiaries its and Company the by scheme the to payable contributions represented) 289,864,200RMB .scheme the by specified percentages at

Leases 7.

:follows as are Company the of assets leased of categories Different) 1(

Categories leased of assets under operating leases	Closing carrying amount	:Unit 0000'RMB Opening carrying amount
Buildings and structures	3,145.94	3,394.63
Total	3,145.94	3,394.63

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

(continued (EVENTS SIGNIFICANT OTHER 11.

(continued(Leases 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 .(8,750,000RMB 2013: (8,110,400RMB to amounted 2014 for income rental The

of end the at leases operating cancellable-non under receivable payments lease minimum The :follows as are period reporting

	:Unit 0000'RMB
Item	Amount for year the	Amount for previous year
Within year one	177.14	570.31
Over year one within but years five	224.72	291.44
Total	401.86	861.75

lease operating under lessee as Company The) 3(

under machinery and plant and buildings and land leasehold certain leases Company The payments lease operating The .years five to one from ranging terms lease with leases operating :follows as were 2014 December 31 ended year the for

	:Unit 0000'RMB
Operating lease payments	Amount for year the	Amount for previous year
Leasehold and land buildings	2,861.39	1,904.78
and Plant machinery		564.13
Total	2,861.39	2,468.91

end the at leases operating cancellable-non under payments lease minimum future total The) 4( :follows as due period reporting of

	:Unit 0000'RMB
Item	Amount for year the	Amount for previous year
Within year one	852.87	889.83
Over year one within but years five	1,527.75	1,027.48
Total	2,380.62	1,917.31

(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 in of respect investment in subsidiaries and jointly controlled :entity — Authorized but yet not contracted — Contracted but paid not	44,277	21,124.04
Commitments in of respect acquisition the of property plant , and equipment of subsidiaries : — Contracted but paid not

Dividends 9.

increase to fund reserve from withdrawn was amount no and 2014 year the for paid was dividend No .(2013 for paid was dividend no (capital

PARENT THE OF STATEMENTS FINANCIAL THE OF ITEMS MAJOR TO NOTES 12.

receivable Accounts 1.

category by receivable Accounts) 1(

		Closing	balance
	value Book		Provision for	debts bad
Category	Amount	%	Amount	%
Individually significant and subject separate to provision for debts bad
Ageing analysis	1,867,953,870.49	100.00	139,047,900.53	7.44
Greencool Companies
Subtotal	1,867,953,870.49	100.00	139,047,900.53	7.44
Individually insignificant but subject separate to provision for debts bad
Total	1,867,953,870.49	100.00	139,047,900.53	7.44

(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) 1(

table above from Continued

	Opening balance
	value Book		Provision for debts bad
Category	Amount	%	Amount	%
Individually significant and subject separate to provision for debts bad
Ageing analysis Greencool Companies	807,479,424.07 38,689,983.28	95.43	152,560,754.49 22,726,941.64	18.89 58.74
		4.57
Subtotal	846,169,407.35	100.00	175,287,696.13	20.72
Individually insignificant but subject separate to provision for debts bad
Total	846,169,407.35	100.00	175,287,696.13	20.72

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

		balance Closing		balance Opening
	value Book		for Provision	value Book		for Provision
Aging	Amount	%	debts bad	Amount	%	debts bad
Within months three	1,719,843,329.52	92.07		630,662,395.32	74.53
Over months three six within but
months	3,057,481.35	0.16	305,748.14	24,931,888.10	2.95	2,493,188.81
Over but months six year one within	12,621,814.46	0.68	6,310,907.23	3,635,149.94	0.43	1,817,574.97
year one Over	132,431,245.16	7.09	132,431,245.16	148,249,990.71	17.52	148,249,990.71
Total	1,867,953,870.49	100	139,047,900.53	807,479,424.07	95.43	152,560,754.49

receivable accounts for provision impairment in Movements) 2(

	Opening	Provision for	Decrease year the for		Closing
	balance year the	Reversal	off-Write	balance
2014	175,287,696.13	12,203,915.39	6,673,376.81	41,770,334.18	139,047,900.53

(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.

off written are that receivable Accounts) 3(

Name	Nature	Amount	Reason for off-write	Whether not or arising from related party transactions
Unrelated party	Payment for goods	57,733,375.82	Not recoverable due to aging long	No
Total		57,733,375.82

:follows as are off written receivable accounts major :Whereas

Name	Nature	Amount	Reason off-write for	The procedure in involved performing off-write	Whether not or from arising party related transactions
Weixi Hefei	for Payment goods	18,229,589.24	Not recoverable due aging long to	Approval from Board directors of	No
Wuhan Changrong	for Payment goods	20,460,394.04	Not recoverable due aging long to	Approval from Board directors of	No
Total		38,689,983.28

more or 5% holding shareholders from due amount no was there 2014, 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 2013, December 31 .receivable accounts of balance the in Company the of shares voting the of) 5%

receivable accounts five Top) 5(

	Relationship with			Percentage the of total accounts receivable
.No	the Company	Amount	Ageing	(%)
1 Top	Subsidiary	1,187,935,176.53	Within three months	63.60
2 Top	Subsidiary	386,872,771.36	Within three months	20.71
3 Top	Subsidiary	44,829,785.25	Within three months	2.40
4 Top	Subsidiary	41,801,853.53	Within three months	2.24
5 Top	Subsidiary	27,821,143.75	Within three months	1.49
Total		1,689,260,730.42		90.44

(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.

:follows as category by disclosed are receivables Other) 1(

	Closing balance
	value Book		Provision for	debts bad
Category	Amount	%	Amount	%
Individually significant and subject separate to provision
for debts bad	127,393,675.52	14.88	3,800,000.00	2.98
Ageing analysis	728,892,677.94	85.12	17,948,914.69	2.46
Greencool Companies
Subtotal	728,892,677.94	85.12	17,948,914.69	2.46
Individually insignificant but subject separate to provision for debts bad
Total	856,286,353.46	100.00	21,748,914.69	2.54

table above from Continued

		Opening balance
		value Book		debts bad
Category	Amount	%	Amount	%
Individually significant and subject separate to for debts bad	provision
Ageing 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 separate to for debts bad	but provision
Total	1,074,944,046.30	100.00	29,490,976.30	2.74

(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 (:follows as category by disclosed are receivables Other) 1(

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

		balance Closing			balance Opening
	value Book		for Provision	value Book		for Provision
Aging	Amount	%	debts bad	Amount	%	debts bad
Within months three Over months three within but	710,231,259.64	82.94		1,036,319,802.72	96.41
months six				964,388.25	0.09	96,438.82
months six Over within but
year one	1,425,007.20	0.17	712,503.59	1,391,867.18	0.13	695,933.59
year one Over	17,236,411.10	2.01	17,236,411.10	20,513,388.15	1.91	20,513,388.15
Total	728,892,677.94	85.12	17,948,914.69	1,059,189,446.30	98.54	21,305,760.56

receivables other for provision impairment in Movements) 2(

			Decrease for	year the
	Opening balance	Provision for year the	Reversal	off-Write	Closing balance
2014	29,490,976.30		4,286,686.02	3,455,375.59	21,748,914.69

:off written are that receivables Other) 3(

Name	Nature	Amount	Reason for off-write	Whether not or arising from related party transactions
Unrelated party	Payment for goods	3,455,375.59	Not recoverable due to aging long	No
Total		3,455,375.59

(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 (:off written are that receivables Other) 3(

:follows as are off-written receivables other major :Whereas

Name	Nature other of receivables	Amount other of receivables	Reason off-write for	The procedure in involved performing off-write	or whether arising not from related party transactions
Shunde Yunlong Consultancy Service Limited	Debt Balance/ due	1,455,375.57	Not recoverable to due aging long	Approval from of Board directors	No
Beijing Deheng Solicitors	Debt Balance/ due	2,000,000.00	Not recoverable to due aging long	Approval from of Board directors	No
Total		3,455,375.57

more or 5% holding shareholders from due amount no was there 2014, 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 2013, December 31 receivables other of balance the in Company the of shares voting the of) 5%

Name	Relationship with the Company	Amount	Aging	Percentage of total the other receivables (%)
1 Top	Subsidiary	207,156,876.99	Within three months	24.19
2 Top	Subsidiary	165,420,136.30	Within three months	19.32
3 Top	Unrelated party	127,393,675.52	Over year one	14.88
4 Top	Subsidiary	79,763,832.65	Within three months	9.32
5 Top	Subsidiary	63,588,915.14	Within three months	7.43
Total		643,323,436.60	—	75.14

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

PARENT THE OF STATEMENTS FINANCIAL THE OF ITEMS MAJOR TO NOTES 12. (continued(

investment equity term-Long 3.

									Impairment
	Accounting					equity %	voting %	Impairment	provided	dividend Cash
Investee	treatment	cost Investment	balance Opening	Changes	balance Closing	held interest	held rights	provision	year the in	year the in
Compressor Huayi	method Equity	24,171,468.64	75,663,702.46	6,226,952.79	81,890,655.25	3.74	3.74			627,855.18
Attend	method Equity	2,000,000.00	3,169,216.09	319,175.63)	2,850,040.46 (	20.00	20.00
Whirlpool-Hisense	method Equity	225,000,000.00	211,116,482.31	39,616,078.84)	171,500,403.47 (	50.00	50.00
Hitachi Hisense	method Equity	332,821,597.45	703,551,272.91	256,251,398.11	959,802,671.02	49.00	49.00			88,200,000.00
equity of Subtotal method		583,993,066.09	993,500,673.77	222,543,096.43	1,216,043,770.20					88,827,855.18
Guangdong Refrigerator	method Cost	155,552,425.85	155,552,425.85		155,552,425.85	70.00	70.00
conditioner-Air Kelon	method Cost	281,000,000.00	281,000,000.00		281,000,000.00	60.00	60.00	59,381,641.00
Freezer Guangdong	method Cost	15,668,880.00	15,668,880.00		15,668,880.00	44.00	44.00
Household Kelon Appliance Electrical	method Cost	2,500,000.00	2,500,000.00		2,500,000.00	25.00	25.00
Home Hisense 1*Appliances	method Cost	32,634,553.70	32,634,553.70	18,896,500.00	51,531,053.70	81.17	81.17
Plastic Rongsheng	method Cost	53,270,064.00	53,270,064.00		53,270,064.00	44.92	44.92
2*Mould Kelon	method Cost	50,323,475.20	50,323,475.20	(50,323,475.20)
E&I Wangao	method Cost	600,000.00	600,000.00		600,000.00	20.00	20.00
Jiake Kelon	method Cost	42,000,000.00	42,000,000.00		42,000,000.00	70.00	70.00
Weili Kelon	method Cost					55.00	55.00
Refrigerator Yingkou	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
Kelon Hangzhou	method Cost	24,000,000.00	24,000,000.00		24,000,000.00	100.00	100.00
Refrigerator Yangzhou	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
Kelon Shenzhen	method Cost	95,000,000.00	95,000,000.00		95,000,000.00	95.00	95.00
Development Kelon	method Cost	11,200,000.00	11,200,000.00		11,200,000.00	100.00	100.00
Refrigerator Chengdu	method Cost	50,000,000.00	50,000,000.00		50,000,000.00	100.00	100.00
Refrigerator Beijing	method Cost	92,101,178.17	92,101,178.17		92,101,178.17	55.00	55.00
Shandong conditioning-Air	method Cost	567,175,477.74	567,175,477.74		567,175,477.74	100.00	100.00
Zhejiang conditioning-Air	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			10,877,281.00
Refrigerator Shandong	method Cost	275,000,000.00	275,000,000.00		275,000,000.00	100.00	100.00
Subtotal method cost of		2,597,400,455.58	2,597,400,455.58	31,426,975.20)	2,565,973,480.38 (			59,381,641.00		10,877,281.00
Total		3,181,393,521.67	3,590,901,129.35	191,116,121.23	3,782,017,250.58			59,381,641.00		99,705,136.18

Hisense in interests equity 30% its all transferred Refrigerator River Pearl ,period the During ¹ *:Note in interests equity 100% held Company the thereafter and ,Company the to Appliances Home Appliances Home Hisense of capital registered the ,period the During .Appliances Home Hisense Home Hisense in interests equity 81.17% held Company the ,increase the after and ,increased was .Appliances

to Mould Kelon in interests equity 40.22% its all transferred Company the ,period the During 2* .Mould Hisense

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

PARENT THE OF STATEMENTS FINANCIAL THE OF ITEMS MAJOR TO NOTES 12. (continued(

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	3,588,402,090.51	14,847,409,656.42
Revenue from other operations	109,276,029.82	575,806,705.13
Total operating revenue	3,697,678,120.33	15,423,216,361.55
of Costs principal operations	2,704,169,299.20	11,744,449,377.16
Costs other of operations	61,972,271.90	377,229,036.32
Total operating costs	2,766,141,571.10	12,121,678,413.48

(products by (operations Principal) 2(

	Amount for	year the	Amount for previous year
Product	Operating revenue	Operating costs	Operating revenue	Operating costs
Refrigerators and
washing machines	1,885,135,759.83	1,510,163,413.14	8,893,323,086.44	7,024,127,644.83
-Air conditioners	1,703,266,330.68	1,194,005,886.06	5,954,086,569.98	4,720,321,732.33
Total	3,588,402,090.51	2,704,169,299.20	14,847,409,656.42	11,744,449,377.16

(regions by (operations Principal) 3(

	Amount for	year the	Amount for previous year
Region	Operating revenue	Operating costs	Operating revenue	Operating costs
Domestic Overseas	3,588,402,090.51	2,704,169,299.20	14,847,409,656.42	11,744,449,377.16
Total	3,588,402,090.51	2,704,169,299.20	14,847,409,656.42	11,744,449,377.16

(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.

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

.No	Amount for year the	Percentage of total the revenue from principal operations the of Company (%)
1 Top	388,888,410.60	10.84
2 Top	304,198,365.70	8.48
3 Top	112,599,723.95	3.14
4 Top	48,697,520.66	1.36
5 Top	48,640,824.70	1.36
Total	903,024,845.61	25.18

gain Investment 5.

gain investment of Breakdown) 1(

Item	Amount for year the	Amount for previous year
from Gain term-long equity investment under cost the
method	10,877,281.00	39,330,018.20
from Gain available sale-for- financial assets during
holding period	9,500,000.00	4,750,000.00
from Gain term-long equity investment under equity the
method	311,516,852.93	299,785,829.53
from Gain disposal of term-long equity investment	7,206,524.80
Total	339,100,658.73	343,865,847.73

method cost the under investments equity term-long from Gain) 2(

Investee	Amount for year the	Amount for previous year
Beijing Refrigerator		15,400,000.00
Hisense Mould	10,877,281.00	23,930,018.20
Total	10,877,281.00	39,330,018.20

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

PARENT THE OF STATEMENTS FINANCIAL THE OF ITEMS MAJOR TO NOTES 12. (continued(

(continued(gain Investment 5.

period holding during assets financial sale-for-available from Gain) 3(

Investee	Amount for year the	Amount for previous year
Hisense International Marketing	9,500,000.00	4,750,000.00
Total	9,500,000.00	4,750,000.00

:method equity the under investment equity term-long from Gain) 4(

Investee	Amount for year the	Amount for previous year
Huayi Compressor	7,000,709.29	6,029,708.70
Hisense Whirlpool	) 39,616,078.84 (	1,297,493.73
Attend	) 319,175.63	) ( 116,634.72 (
Hisense Hitachi	344,451,398.11	292,575,261.82
Total	311,516,852.93	299,785,829.53

(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 to 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	964,079,696.22	527,264,002.07
:Add Provision assets for impairment	) 62,556,739.39 (	13,221,334.10
Depreciation fixed of ,assets depletion and oil of assets gas
and depreciation of productive biological assets	26,073,649.96	27,038,192.20
Amortization of intangible assets	9,751,648.00	8,781,079.24
Amortization of term-long prepaid expenses	670,666.64
on Loss disposal fixed of ,assets intangible assets other and
term-long assets Gain ( denoted "in ("bracket	175,297.41	100,318.32
on Loss retirement fixed of assets Gain ( denoted "in ("bracket
on Loss in change value fair Gain ( denoted "in ("bracket
Financial expenses Gain ( denoted "in ("bracket
Investment Gain (loss denoted "in ("bracket	) 339,100,658.73	) ( 343,865,847.73 (
Decrease in deferred assets tax Increase ( denoted "in ("bracket
Increase in deferred tax liabilities Decrease ( denoted in ("bracket"
Decrease in inventories Increase ( denoted "in ("bracket	1,722,180,928.99	) 620,722,778.99 (
Decrease in operating receivables Increase ( denoted in
("bracket"	1,555,687,319.49 )	1,296,929,392.15 (
Increase in operating (payables Decrease in denoted bracket " ) ("	4,251,728,237.42 (	1,610,782,015.39
Others
Net flows cash from operating activities	) 374,766,428.83	) ( 74,331,077.55 (
2. Significant investment 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	28,279,997.40	194,913,820.28
Less Cash : the at beginning of period the	194,913,820.28	342,912,430.57
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	) 166,633,822.88	) ( 147,998,610.29 (

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

INFORMATION SUPPLEMENTARY 13.

loss or profit recurring-non of Breakdown 1.

Item	Amount for year the	Amount for previous year
or Profit from loss disposal non of current- assets ,Return reduction and exemption taxes of surpassing approval without or official approval document Government grants included in gain the (loss or excluding those government grants are that closely related the to 'enterprise business s are and received fixed with amounts with or fixed percentage on based unified standards	) 2,343,557.57 (	296,087.55
promulgated by government ( Capital occupation fees received non from financial- enterprises are that included current in profits losses or Gain arising the under circumstance the where investment for cost acquisition of subsidiaries , associates joint and ventures lower is the than value fair the of assets net attributable the to enterprise Gain loss or arising non from monetary- assets exchange Gain loss or arising from entrusted investment or entrusted	82,298,890.90	82,700,643.38
asset management Asset impairment provided due forced to majeure .g.e ( natural (disasters Gain loss or arising debt from restructuring Corporate restructuring (expenses staff .g.e placement costs and integration (expenses Gain loss or arising the from difference between the fair and value transaction in price obviously unfair transactions Net current profit of loss or subsidiaries arising from business combination under common control from beginning year of the to combination date Gain loss or arising from contingencies irrelevant the to	) 36,817,863.11 ) (	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 effective hedging activities related the to Company normal s' operations and investment from gain disposal of financial and assets liabilities for-held trading- and available for- sale financial assets Reversal of impairment provision for accounts receivable individually for tested impairment Gain loss or arising from entrusted loan Gain loss or arising from changes fair in of value investment properties measured subsequently using by value fair model Effect current on profit of loss or off-one adjustment to current profit as loss or required by ,taxation accounting other and and laws regulations	12,585,064.60	89,950,024.68
Custody fee income from entrusted operations non Other operating- income and expense other the than aforementioned items Other or profit items loss the within meaning non of	39,015,647.68	14,306,916.33
recurring profit loss or non Total recurring- profit loss or Less Effect : income of non on tax recurring- profit loss or non Net recurring- profit loss or :Less effect Net non of recurring- profit loss or attributable	94,738,182.50 15,218,459.01 79,519,723.49	134,760,894.08 4,249,768.03 130,511,126.05
to minority (interests (tax after	) 10,027,621.39	) ( 7,254,093.11 (
Non recurring- profit loss or attributable to ordinary shareholders the of Company	89,547,344.88	137,765,219.16

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

(continued (INFORMATION SUPPLEMENTARY 13.

share per earnings and asset net on Return 2.

2014

	Weighted		Earnings share per
Profit the for reporting period	average return of on assets net (%)	Basic earnings share per	Diluted earnings share per
profit Net attributable to ordinary shareholders the of Company	21.65	0.50	0.50
profit Net attributable to ordinary shareholders the of Company after
non recurring- profit loss or	18.76	0.43	0.43

2013

	Weighted	Earnings	share per
Profit the for reporting period	average return of on assets net (%)	Basic earnings share per	Diluted earnings share per
profit Net attributable to ordinary shareholders the of Company	56.78	0.90	0.90
profit Net attributable to ordinary
shareholders the of Company after
non recurring- profit loss or	50.35	0.80	0.80

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

(continued (INFORMATION SUPPLEMENTARY 13.

the and Company the of statement financial in items major for balances abnormal of Illustration 3. reasons

Statement Item	Closing balance or( for amount current the (year	Opening balance or( for amount previous ) year	Change %	Reasons change for
Cash bank at hand on and	870,663,755.12	473,787,177.54	83.77%	due Mainly collection to notes of receivable and in increase accounts receivable factoring the during reporting period
Notes receivable	991,796,937.82	2,160,801,733.50	( 54.10%	Mainly) to due in increase collection notes of receivable due the during reporting period
Prepayments	498,209,306.68	352,903,571.02	41.17%	Mainly to due in increase construction prepayment during current the period
Deferred assets tax	106,813,348.23	36,616,861.02	191.71%	due Mainly increases to the in of number subsidiaries eligible for providing deferred for tax assets the and sustainable profit growth the of subsidiaries at as the the of end reporting period
term-Short borrowings	253,985,142.45	191,681,513.02	32.50%	Mainly to due in increase accounts receivable factoring during current the period
Taxes payable	174,792,592.21	86,555,036.75	101.94%	due Mainly increase to income in payable tax during period the
Impairment on losses assets	58,625,706.01	( 66,379,836.60 )	( 188.32%	Mainly) to due of reversal provisions the for Greencool bad during debts same the period previous in year
Gain from arising changes value fair in	( 74,339,051.01 )	56,596,312.10	( ) 231.35%	due Mainly changes to in outstanding forward transactions and in changes transactions transferred out upon maturity the during current period
of Payment cash other to related operations	3,814,090,558.19	2,812,073,099.38	35.63%	due Mainly increase to expense in payment result a as increase of the in sale of scale
Cash for paid purchasing and constructing fixed assets intangible, assets other and term-long assets	766,186,788.01	565,717,025.69	35.44%	Mainly to due in increases investment by Shandong Refrigerator , subsidiary a the of Company
Proceeds from borrowings	1,332,590,807.75	406,785,264.38	227.59%	Mainly to due in increase financing activities the during current period
Cash for paid repayment liabilities of	1,264,519,716.22	244,645,738.20	416.88%	Mainly to due in increase financing activities the during current period
Cash for paid distribution dividends of or profit , interest expenses	26,947,098.71	15,790,611.76	70.65%	due Mainly increase to interest in expenses result a as increase of financing in activities during current the period

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

(continued (INFORMATION SUPPLEMENTARY 13.

summary financial year-Five 4.

					:Unit 0000'RMB
Statement Item	2014	2013	2012	2011	2010
Total operating
revenue	2,653,442.09	2,436,002.13	1,895,891.53	1,848,866.32	1,769,032.36
Total profits	77,123.56	129,941.28	74,285.40	24,669.96	62,770.86
Income tax	5,972.51	5,361.89	1,054.84	2,125.04	3,158.83
profit Net	71,151.05	124,579.39	73,230.56	22,544.92	59,612.03
profit Net attributable to equity holders
of parent the	67,247.86	121,566.96	71,776.47	22,701.51	58,527.77
Minority
interests	3,903.19	3,012.43	1,454.09	(156.59)	1,084.26
Distribution of dividends

table above from Continued

Statement Item	at As 31 December 2014	at As 31 December 2013	at As 31 December 2012	at As 31 December 2011	at As 31 December 2010
Total assets	1,326,679.40	1,220,803.09	929,501.14	763,543.96	801,896.89
Total liabilities	932,621.34	902,469.32	742,180.34	647,462.47	710,802.11
assets Net	394,058.06	318,333.77	187,320.80	116,081.49	91,094.79
Total equity attributable to equity holders
of parent the	345,836.30	274,873.11	151,204.22	80,512.36	54,124.14
Minority
interests	48,221.76	43,460.66	36,116.58	35,569.13	36,970.65
Total equity	394,058.06	318,333.77	187,320.80	116,081.49	91,094.79

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

(continued (INFORMATION SUPPLEMENTARY 13.

policies accounting in changes to related information Supplementary 5.

principles accounting eight to pursuant policies accounting relevant to changes made has Company The Revised(Investments Equity term-Long – 2 Enterprises Business for Standards Accounting including comparable the to made been have restatements retrospective and Finance of Ministry by issued) 2014 December 31 and 2013 January 1 at as sheets balance consolidated restated The .statements financial :follows as are 2013

statement assets Consolidated) 1(

6,024,842,872.20 4,000,000.00 747,925,728.90 36,446,602.09 1,909,832,448.93 68,344,253.58 495,496,878.49 827,939.58 7,294,688.02	7,990,704,892.00 4,000,000.00 993,500,673.77 33,946,307.75 2,368,500,692.73 253,977,558.18 521,782,817.81 5,001,055.07 36,616,861.02
97,985,835.80	248,628,217.20
1,738,441,110.15	2,496,359,854.46
	546,337,496.66
	352,903,571.02
	2,160,801,733.50 1,644,771,822.27
	67,115,019.35
	473,787,177.54
	2013.12.31
	2013.1.1 516,065,467.96 10,678,293.47 1,558,766,192.61 1,455,882,205.49 304,301,601.58 342,722,165.14

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

(continued (INFORMATION SUPPLEMENTARY 13.

(continued (policies accounting in changes to related information Supplementary 5.

statement liabilities Consolidated) 2(

Item	2013.1.1	2013.12.31
Current :liabilities
Short term- borrowings	30,309,453.94	191,681,513.02
Financial liabilities at value fair through profit loss or	164,231.22	4,645.00
Notes payable	1,432,852,210.08	1,391,098,638.68
Accounts payable	2,335,425,936.47	3,480,510,368.16
Advances from customers	837,065,771.59	907,031,506.85
Compensations to payable employee	223,662,684.56	236,343,013.69
Taxes payable	45,681,952.70	86,555,036.75
Interests payable	202,930.49
Dividends payable	2,067.02	9,002,067.02
Other payables	1,581,294,492.81	1,731,259,054.40
Other current liabilities	566,406,795.92	574,037,292.42
Total current liabilities	7,053,068,526.80	8,607,523,135.99
Non current- :liabilities
Provisions	311,862,482.54	361,158,229.87
Deferred income	56,872,390.49	56,011,769.90
Deferred tax liabilities
non Total current- liabilities	368,734,873.03	417,169,999.77
Total liabilities	7,421,803,399.83	9,024,693,135.76
:Equity
Share capital	1,354,054,750.00	1,354,054,750.00
Capital reserve	2,091,357,299.28	2,092,858,847.28
Other comprehensive income	20,832,593.58	40,350,357.85
Surplus reserve	145,189,526.48	145,189,526.48
Undistributed profits	) 2,099,392,002.85	) ( 883,722,400.78 (
Total equity attributable to shareholders of parent the	1,512,042,166.49	2,748,731,080.83
Minority interests	361,165,845.47	434,606,641.74
Total equity	1,873,208,011.96	3,183,337,722.57
Total liabilities and equities	9,295,011,411.79	12,208,030,858.33