Medlive Technology Co., Ltd. — Interim / Quarterly Report 2017

Oct 18, 2017

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

==> picture [235 x 57] intentionally omitted <==

HISENSE KELON ELECTRICAL HOLDINGS COMPANY LIMITED 海信科龍電器股份有限公司

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 00921)

2017 THIRD QUARTERLY REPORT

This announcement is made by Hisense Kelon Electrical Holdings Company Limited (the “Company”) pursuant to Part XIVA of the Securities and Futures Ordinance (CAP.571) and Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

I. IMPORTANT NOTICE

1. The board of directors (the “Board”), the supervisory committee, the directors (the “Directors”), the supervisors and the senior management of the Company warrant that there are no false representation or misleading statements contained in, or material omissions from, this report; and jointly and severally accept legal responsibility for the truthfulness, accuracy and completeness of the information contained herein.

2. Mr. Tang Ye Guo, the person in charge of the Company and Ms. Gao Yu Ling, the person in charge of the accounting function and Ms. Liang Hong Tao, the person in charge of the accounting department, warrant the truthfulness, accuracy and completeness of the contents of the financial statements in this quarterly report.

3. All Directors attended the Board meeting for considering and approving the 2017 third quarterly report.

4. The financial statements of the Company for the third quarter of 2017 have not been audited by accountants.

5. The full text of the Company’s balance sheet, income statement and cash flow statement are published on the website as designated by the Shenzhen Stock Exchange for release of information: http://www.cninfo.com.cn.

1

II. MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS

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

□Yes √No

Items	End of the reporting period	End of the previous financial year	End of the previous financial year	Increase or decrease as compared to the end of the previous financial year(%)
Total assets(RMB)	21,449,313,038.40	19,055,058,608.32		12.56
Net assets attributable to shareholders of listed company (RMB)	6,186,615,515.64	4,867,466,177.17		27.10
Items	Reporting period	Increase or decrease as compared to corresponding period last year (%)	The beginning of the year to the end of the reporting period	Increase or decrease (the beginning of the year to the end of the reporting period as compared to corresponding period last year) (%)
Operatingrevenue(RMB)	8,787,929,877.11	20.26	26,394,287,298.52	29.19
Net profits attributable to shareholders of listed company (RMB)	1,057,547,302.62	247.77	1,729,646,161.92	100.34
Net profits attributable to shareholders of listed company after deducting extraordinary profit and loss(RMB)	304,076,728.89	7.93	908,588,928.52	13.45
Net cash flows from operating activities (RMB)	--	--	915,793,612.33	-61.85
Basic earningsper share(RMB/share)	0.78	254.55	1.27	101.59
Diluted earningsper share(RMB/share)	0.78	254.55	1.27	101.59
Weighted average rate of return on net assets(%)	18.74	12.03	31.17	11.45

Extraordinary profit and loss items and amounts

• √Applicable □ Not applicable

Unit: RMB	Unit: RMB
Items	Amounts from the beginning of the year to the end of the reporting period
Profits or losses from disposal of non-current assets (including the part written off for provision for impairment on assets)	780,615,610.30
Government subsidyrecorded in theprofits or losses of the currentperiod	86,524,899.92

2

(except government subsidy which is closely related to the Company’s business and is entitled for fixed amounts or fixed percentage based on unified standards promulgated bythe government)
Non-operatingincome and expenses other than the aforementioned items	10,840,283.86
Less: Effect of income tax	37,289,916.63
Effect of minority interests (after tax)	19,633,644.05
Total	821,057,233.40

Reasons should be given if the Company has classified any extraordinary profit and loss items (as defined and listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public – Extraordinary Profit and Loss) as recurring gain and loss items.

□ Applicable √ Not Applicable

The Company did not classify any extraordinary profit and loss items (as defined and listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public – Extraordinary Profit and Loss) as recurring gain and loss items during the reporting period.

III. Table showing total number of shareholders and the shareholding of the top ten holders of ordinary shares at the end of the reporting period

Unit: shares

Total number of shareholders of ordinary shares at the end of the reporting period
						39,486
The shareholding of thetopten holders ofordinary shares
Name of Shareholder		Nature of Shareholder	Percentage to the total issued share capital of the Company (%)	No. of shares held	No. of shares held subject to selling restrictions	Situation of pledged or frozen shares
						Share status	Quantity
Qingdao Hisense Air-conditioning Company Limited		State-owned legal person	37.92%	516,758,670	0
HKSCC Nominees LimitedNote		Foreign legal person	33.84%	461,145,996	0
Cental Huijin Investment Ltd.		State-owned legalperson	1.95%	26,588,700	0
China Merchants Bank Co., Ltd. – Guo Tai Growth Well-Selected Mixed Type Securities Investment Fund		Other	0.99%	13,556,634	0
Bank of China Limited – CIFM Core Growth Equity Type Securities Investment Fund		Other	0.90%	12,279,653	0
China Construction Bank Corporation – Hui Tian Fu Consumer Industry Mixed Type Securities Investment Fund		Other	0.73%	10,000,008	0
Zhang Shao Wu		Domestic naturalperson	0.53%	7,200,000	0
Taikang Life Insurance Co., Ltd - Investment-Linked – IndustryAllocation		Other	0.45%	6,066,349	0

3

China Construction Bank Corporation - Guotai Jinxin Equity Type Securities Investment Fund	Other	0.44%	0.44%	6,029,256	6,029,256	0
Bank of China - ChinaAMC Return Securities Investment Fund	Other	0.44%		5,944,467		0
The shareholding of thetopten holders ofordinary sharesnotsubject to sellingrestrictions
Name of Shareholder			Number of shares held not subject to selling restrictions		Class
					Class			Quantity
Qingdao Hisense Air-conditioning Company Limited			516,758,670		RMB ordinary shares			516,758,670
HKSCC Nominees LimitedNote			461,145,996		Overseas listed foreignshares			458,164,069
					RMBordinary shares			2,981,927
Cental Huijin Investment Ltd.			26,588,700		RMB ordinary shares			26,588,700
China Merchants Bank Co., Ltd. – Guo Tai Growth Well-Selected Mixed Type Securities Investment Fund			13,556,634		RMB ordinary shares			13,556,634
Bank of China Limited – CIFM Core Growth Equity Type Securities Investment Fund			12,279,653		RMBordinary shares			12,279,653
China Construction Bank Corporation – Hui Tian Fu Consumer IndustryMixed Type Securities Investment Fund			10,000,008		RMB ordinary shares			10,000,008
ZhangShao Wu			7,200,000		RMB ordinary shares			7,200,000
Taikang Life Insurance Co., Ltd - Investment-Linked – IndustryAllocation			6,066,349		RMBordinary shares			6,066,349
China Construction Bank Corporation - Guotai Jinxin Equity Type Securities Investment Fund			6,029,256		RMB ordinary shares			6,029,256
Bank of China - ChinaAMC Return Securities Investment Fund			5,944,467		RMBordinary shares			5,944,467

Note:

The shares held by HKSCC Nominees Limited are held on behalf of a number of its account participants, among which, Hisense (Hong Kong) Company Limited, a party acting in concert with the controlling shareholder of the Company, is the holder of 97,202,000 H shares of the Company in total at the end of the reporting period, representing 7.13% of the total number of shares of the Company.

IV. SIGNIFICANT MATTERS

1. Details of and reasons for significant changes of the principal accounting items and financial indicators during the reporting period

• √Applicable □ Not applicable

Unit: RMB

Balance sheet items	Closing balance	Opening balance	Change （%）	Reason for the change
Cash and cash equivalents	4,317,672,293.41	2,227,421,330.74	93.84	Mainly due to the receipt from part of the bank wealth management products upon maturityduringthe reporting period and the

4

				amount received for the transfer of equity interest of a subsidiary
Other receivables	369,530,909.39	245,420,469.20	50.57	Mainly due to the increase in export tax rebate receivable at the end of the reporting period
Other current assets	779,880,687.83	1,678,765,851.25	-53.54	Mainly due to the receipt from wealth management products upon maturity during the reportingperiod
Long-term equity investments	2,213,746,353.66	1,627,383,596.00	36.03	Mainly due to the recognition of investment income from Qingdao Hisense Hitachi Air-Conditioning Systems Co., Ltd. during the reporting period and the new investment in Hisense Financial Holdings Co., Ltd.
Construction in progress	152,415,508.30	72,942,458.27	108.95	Mainly due to the increase in investment in technological transformation at the end of the reportingperiod
Taxes payable	387,040,180.65	222,919,921.87	73.62	Mainly due to the increase in value-added tax and income tax payables at the end of the reportingperiod
Income statement items	Amount for the period from the beginning of the year to the end of the reporting period	Amount for the corresponding period last year	Change （%）	Reason for the change
Operating costs	21,271,664,033.84	15,580,481,889.46	36.53	Mainly due to the increased scale of sales and the increase in price of raw material, resulting in a year-to-year increase in operatingcosts
Taxes and surcharges	230,752,410.34	85,981,713.91	168.37	Mainly because the taxes, such as the fund for waste electronic products, were included under taxes and surcharges during this period, whereas these were included under expenses in the corresponding period last year, resultingin ayear-to-year increase
Investment Income	1,389,925,885.07	367,219,789.08	278.5	Mainly due to the increase in investment income from Qingdao Hisense Hitachi Air-Conditioning Systems Co., Ltd. and the recognition of income from the disposal of equityinterest ofa subsidiary
Income tax expenses	202,087,596.84	143,522,249.55	40.81	Mainly due to the increase in income tax payable of the subsidiaries during the reportingperiod
Statement of cash flow items	Amount for the period from the beginning of the year to the end of the reporting period	Amount for the corresponding period last year	Change （%）	Reason for the change
Taxes rebates received	966,563,425.51	674,229,201.55	43.36	Mainly due to the increase in export tax rebate received as a result of the increase in

5

				the scale of export
Cash paid for purchase of goods and services received	11,763,058,809.14	7,686,714,551.01	53.03	Mainly due to the increase in scale, resulting in an increase in the purchase monies paid
Cash received from recovery of investments	229,565,000.00	160,230,000.00	43.27	Mainly due to the increase in dividend received from Qingdao Hisense Hitachi Air-Conditioning Systems Co., Ltd. during thisperiod
Cash received from investment income	32,665,961.46	10,782,721.92	202.95	Mainly due to the increase in income received from wealth management products
Cash received relating to other investingactivities	3,100,040,000.00	761,000,000.00	307.36	Due to the increase in redemption of wealth management products
Cash received from disposals of subsidiaries and other operation units	862,560,000.00		Not applicable	Due to receipt of fund for the disposal of equity interest in a subsidiary
Cash paid to acquire fixed assets, intangible assets and other long-term assets	269,333,791.77	191,262,926.95	40.82	Mainly due to the increase in investment in technological transformation of fixed assets
Cash paid investments	242,250,000.00		Not applicable	Mainly due to the increase in investment in Qingdao Hisense Financial Holdings Co., Ltd duringthis period
Cash paid for relating to other investingactivities	2,130,000,000.00	1,561,000,000.00	36.45	Due to the increase in subscription of wealth management products
Cash received from borrowings		851,145,724.36	-100.00	Due to the existence of factoring loan activities of account receivables in the corresponding period last year, which no longer existed duringthis period
Cash paid for repayment of borrowings		836,484,462.63	-100.00	Due to the existence of factoring loan activities of account receivables in the corresponding period last year, which no longer existed duringthis period
Cash paid for distribution of dividends, profit or payment of interest expenses	421,861,203.32	232,942,816.28	81.10	Mainly due to the increase in payment of dividend by listed company
Cash paid relating to other financing activities	1,090,882,239.61	1,190,281.40	91549.10	Mainly due to the increase in payment of deposit

2.Development of significant matters and analysis of their impacts and solutions

6

□Applicable √ Not applicable

3. Undertakings not yet performed within prescribed time by the relevant party(ies), such as the Company’s beneficial controller(s), shareholder(s), connected party(ies), acquirer(s) and the Company, during the reporting period.

□Applicable √ Not applicable

4. Estimate of operating results for 2017

Warnings and explanations of any estimated losses or significant changes to accumulated net profit from the beginning of the year to the end of next reporting period compared to the same period last year

□Applicable √ Not applicable

5. Securities investment

□Applicable √ Not applicable

6. Derivatives investment

√Applicable □ Not applicable

Unit: RMB (in ten thousand)

Nam e of oper ators of deriv ative s inves tmen t	Conn ectio n	Whethe r or not a connect ed transact ion	Type of derivatives investment	Initial investment of derivatives investment	Effective Date	Expiry Date	Investme nt at the beginning of the reporting period	Amount of purchase during the reporting period	Amount of disposal during the reporting period	Amo unt of provi sion for impai rment (if any)	Investme nt at the end of the reporting period	Propor tion of invest ment to the net asset of the Compa ny at the end of the reporti ng period (%)	Actual amount of profit and loss during the reportin g period
Bank	No	No	Forward foreign exchange contracts	56,601.75	1January 2017	30 September 2017	56,601.75	8,133.61	51,040.91		13,694.45	2.21	-1,360.52
Total				56,601.75	--	--	56,601.75	8,133.61	51,040.91		13,694.45	2.21	-1,360.52
Source of derivatives investment funding				Export trade payment
Litigation involved (if				Not applicable

7

applicable) Date of the announcement 30 March 2017 disclosing the approval of derivatives investment by the Board (if any) Date of the announcement Not applicable disclosing the approval of derivatives investment during shareholders’ meetings (if any) The derivatives business of the Company mainly represents the forward foreign exchange contracts used to avoid the risk of foreign exchange fluctuations related to the overseas sales receivables. The Company determines a reasonable range of foreign exchange rates to achieve the hedging Risk analysis of positions in purpose. derivatives during the reporting period and explanations of risk The Company has formulated the “Management Measures for the Foreign Exchange Capital control measures (including but Business” and “the Internal Control System for Forward Foreign Exchange Capital Transactions”. not limited to market risk, The measures specifically regulate the basic principles, operation rules, risk control measures and liquidity risk, credit risk, internal controls that shall be followed when engaging in the business of foreign exchange operation risk, legal risk etc.) derivatives. In respect of actual business management, the Company manages the derivatives business before, during and after the operation based on the management measures for the derivatives business.

Changes in market price or product fair value of invested The assessment of the fair value of the derivatives carried out by the Company mainly represents derivatives during the the outstanding foreign exchange forward contracts entered into by the Company and banks, which Reporting Period, where are recognized as transactional financial assets or liabilities based on the difference between the specific methods and relevant quotation of the outstanding foreign exchange forward contracts and the forward exchange rate as assumptions and parameters at the end of the period. During the reporting period, the Company recognized a gain on change in used shall be disclosed in the fair value of the derivatives of RMB-12.1939 million. Investment loss amounted to RMB-1.4113 analysis of derivatives’ fair million, resulting in a total profits or losses of RMB-13.6052 million. value

Explanations of any significant changes in the Company’s accounting policies and specific During the reporting period, there were no material changes in the accounting policy and specific accounting and auditing accounting and auditing principles for the Company’s derivatives business as compared to last principles on derivatives reporting period. between the reporting period and the last reporting period

Opinion of independent Directors: Commencement of foreign exchange derivatives business by the Specific opinions of Company was beneficial to the Company in the prevention of exchange rate fluctuation risks. The independent Directors on the Company has devised the Internal Control System for Forward Foreign Exchange Capital derivatives investment and risk Transactions to strengthen internal control and enhance the management of foreign exchange risks control of the Company by the Company, and the targeted risk control measures adopted were practicable.

7. Table setting out the reception activities in respect of research, communications and visits during the reporting period

□Applicable √ Not applicable

8. Illegal external guarantees

8

□Applicable √ Not applicable

9. Non-operating use of the capital of the listed company by the controlling shareholder and its connected parties

□Applicable √ Not applicable

10. Performance of the social responsibility for targeted poverty alleviation

□Applicable √ Not applicable

This quarterly report is prepared in Chinese and English respectively. In case of inconsistency, the Chinese text of this quarterly report shall prevail over its English text.

By order of the Board of Hisense Kelon Electrical Holdings Company Limited Tang Ye Guo Chairman

Foshan City, Guangdong, the PRC, 18 October 2017

As at the date of this announcement, the Company’s directors are Mr. Tang Ye Guo, Mr. Liu Hong Xin, Mr. Lin Lan, Mr. Dai Hui Zhong, Mr. Jia Shao Qian and Mr. Wang Yun Li; and the Company’s independent non-executive directors are Mr. Ma Jin Quan, Mr. Xu Xiang Yi and Mr. Liu Xiao Feng.

9