Medlive Technology Co., Ltd. — Interim / Quarterly Report 2018

Oct 25, 2018

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.

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HISENSE HOME APPLIANCES GROUP CO., LTD.

海 信 家 電 集 團 股 份 有 限 公 司

• (Formerly known as “ 海信科龍電器股份有限公司 Hisense Kelon Electrical Holdings Company Limited”) (a joint stock limited company incorporated in the People’s Republic of China with limited liability)

(Stock Code: 00921)

2018 THIRD QUARTERLY REPORT

This announcement is made by Hisense Home Appliances Group Co., Ltd.* (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 2018 third quarterly report.

4. The financial statements of the Company for the third quarter of 2018 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.

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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

					Increase or decrease at
					the end of this reporting
Items	End of this reporting period		End of last financial year		period as compared to the
					end of last financial
					year(%)
Total assets (RMB)	21,532,035,209.67		21,473,666,822.72		0.27
Net assets attributable to shareholders of	7,020,791,868.19		6,445,303,673.87		8.93
listed company(RMB)
						Increase or decrease
		Increase or
						(the beginning of the
		decrease as		The beginning
						year to the end of the
		compared to		of the year to the
Items	This reporting period					reporting period as
		corresponding		end of the
		period last		reporting period		compared to
						corresponding period
		year(%)				lastyear)(%)
Operatingrevenue (RMB)	8,437,634,566.46	-3.99		28,808,393,856.04		9.15
Net profits attributable to shareholders of	367,564,987.39	-65.24		1,170,523,001.24		-32.33
listed company(RMB)
Net profits attributable to shareholders of	276,254,776.47	-9.15		1,025,656,775.80		12.88
listed company after deducting
extraordinary profit and loss (RMB)
Net cash flow from operating activities				1,838,239,707.44		100.73
	-	-
(RMB)
Basic earningsper share (RMB/share)	0.27	-65.38		0.86		-32.28
Diluted earningsper share (RMB/share)	0.27	-65.38		0.86		-32.28
Weighted average rate of return on net	5.38	-13.36		17.30		-13.87
assets (%)

Note: If the effect of disposal gain recognized from the sale of equity interest of subsidiary in the corresponding period last year is excluded, the net profits attributable to shareholders of the listed company during this reporting period will increase by 22.87% year-on-year, and the net profits attributable to shareholders of the listed companies from the beginning of the year to the end of the reporting period will increase by 20.52% year-on-year.

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Unit: RMB	Unit: RMB	Unit: RMB
	Amounts from the
	beginning of the year
Item		Description
	to the end of the
	reporting period
Profits or losses from disposal of non-current assets (including the part written off forprovision for impairment on assets)
	-720,225.89

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Government subsidy recorded in the profits or losses of the current
period(except government subsidy which is closely related to the
	171,876,124.66
Company’s business and is entitled for fixed amounts or fixed percentage
based on unified standardspromulgated bythegovernment)
Non-operatingincome and expenses other than the aforementioned items	18,991,694.16
Less: Effect of income tax	39,094,143.22
Effect of minority interests (after tax)	6,187,224.27
	144,866,225.44
Total		--

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					40,002
reporting period
The shareholdingof the topten holders of ordinaryshares
		Percentage			Situation of
		to the total		No. of	pledged or frozen
		issued share		shares held	shares
	Nature of		No. of shares
Name of Shareholder		capital of		subject to
	Shareholder		held
		the		selling	Share
						Quantity
		Company		restrictions	status
		(%)
Qingdao Hisense Air-conditioning CompanyLimited	State-owned legalperson	37.92%	516,758,670	0
HKSCC Nominees LimitedNote1	Foreign legal person	33.53%	456,911,069	0
Central Huijin Asset Management Ltd.	State-owned legalperson	1.95%	26,588,700	0
Bank of China Ltd. - Putting Up JP Morgan Core Growth Equity Securities Investment Fund	Other	1.79%	24,348,783	0
China Merchants Bank Co., Ltd. - Cathay Pacific Growth Optimized Hybrid Securities Investment Fund	Other	1.47%	22,449,100	0
Bank of Communications Co., Ltd. - HSBC Jintrust Large Cap Equity Securities Investment Fund	Other	0.73%	11,649,800	0
China Construction Bank Corporation - Cathay Pacific Jinxin Securities Investment Fund	Other	0.69%	9,470,690	0
Zhang Shao Wu	Domestic naturalperson	0.65%	7,200,000	0
Bank of Communications Co., Ltd - HSBC Jintrust Dynamic Strategy Mixed Securities Investment Fund	Other	0.59%	5,582,836	0
Agricultural Bank of ChinaLimited – Essence Comparative Advantage	Other	0.53%	5,501,346	0

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Flexible Allocation of Hybrid Securities Investment Fund
The shareholdingof the topten holders of ordinaryshares not subject to sellingrestrictions
			Number of shares		Class of shares
Name of Shareholder			held not subject to
					Class of shares			Quantity
			sellingrestrictions
Qingdao Hisense Air-conditioningCompanyLimited			516,758,670		RMB ordinaryshares			516,758,670
HKSCC Nominees Limited~~Note1~~			456,911,069		Overseas listed
								456,911,069
					foreign shares
Central Huijin Asset Management Ltd.			26,588,700		RMB ordinaryshares			26,588,700
Bank of China Ltd. - Putting Up JP Morgan Core Growth EquitySecurities Investment Fund			24,348,783
								24,348,783
					RMB ordinaryshares
China Merchants Bank Co., Ltd. - Cathay Pacific Growth Optimized Hybrid Securities Investment Fund			22,449,100
								22,449,100
					RMB ordinaryshares
Bank of Communications Co., Ltd - HSBC Jintrust Large CapEquitySecurities Investment Fund			11,649,800
								11,649,800
					RMB ordinaryshares
China Construction Bank Corporation - Cathay Pacific Jinxin Securities Investment Fund			9,470,690
								9,470,690
					RMB ordinaryshares
ZhangShao Wu			7,200,000		RMB ordinaryshares			7,200,000
Bank of Communications Co., Ltd - HSBC Jintrust Dynamic StrategyMixed Securities Investment Fund			5,582,836
								5,582,836
					RMB ordinaryshares
Agricultural Bank of China Limited– Essence Comparative Advantage Flexible Allocation of Hybrid Securities Investment Fund			5,501,346
								5,501,346
					RMB ordinaryshares

Notes:

1. 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, increased its holdings by 27,250,000H shares, held a total of 124,452,000 H shares of the Company as at the end of the reporting period, representing 9.13% of the total number of shares of the Company;

2. The manager of both China Merchants Bank Co., Ltd. - Cathay Pacific Growth Optimized Hybrid Securities Investment Fund and China Construction Bank Corporation - Cathay Pacific Jinxin Securities Investment Fund is Cathay Pacific Fund Management Co., Ltd.. The manager of both Bank of Communications - HSBC Jintrust Large Cap Equity Securities Investment Fund and Bank of Communications - HSBC Jintrust Dynamic Strategy Balanced Fund is HSBC Jintrust Fund Management Company Limited. Save as disclosed above, the Company is not aware of whether any shareholders is connected with each other or any of them is a party acting in concert with any of the other within the meaning of 《上市公司收購管理辦法》 (Administrative Measures for the Takeover of Listed Companies).

IV. SIGNIFICANT MATTERS

(I) Details of and reasons for changes of the principal accounting items and financial indicators during the reporting period

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e

Unit: RMB

			Change （%）
Balance sheet items	Closing balance	Opening balance		Reason for the change
Cash and cash equivalents	4,551,502,290.56	2,996,028,194.89	51.92	Mainly due to the increase in net cash flows from operating activities
Other current assets	1,010,598,806.49	1,551,317,129.32	-34.86	Mainly due to the receipt from certain wealth management products upon their maturity at the end of the reporting period
Construction in progress	71,339,562.29	148,361,940.80	-51.92	Mainly due to the completion of certain construction works and conversion thereof into fixed assets
	Amount for the period from the
		A f h
Income statement items	beginning of the	mount or te	Change （%）
				Reason for the change
	year to the end of the reporting period	corresponding period last year
Other income	241,345,488.58	87,896,008.18	174.58	Mainly due to the increase in government subsidy received
Investment income	657,050,300.04	1,389,925,885.07	-52.73	Mainly due to the recognition of income from the disposal of equity interest of a subsidiary in the corresponding period, and not for the current period, resulting in the decrease
Non-operating income	56,520,713.42	83,074,176.52	-31.96	Mainly due to the decrease in other government subsidy received
Income tax expenses	126,479,218.89	202,087,596.84	-37.41	Mainly due to the undistributed deficit of certain subsidiaries resulting in the decrease in income tax expenses
	Amount for the period from the
		A f h
Statement of cash flow items	beginning of the	mount or te	Change （%）
				Reason for the change
	year to the end of the reporting period	corresponding period last year
Cash received from other operating related activities	676,524,880.57	395,312,722.47	71.14	Mainly due to the increase in government subsidy received
Cash received from investment income	50,251,697.52	32,665,976.46	53.83	Mainly due to the increase in income received from wealth management products
Cash paid for distribution of dividends, profit or payment of interest expenses	615,303,035.48	421,861,203.32	45.85	Mainly due to the increase in payment of dividend by listed company

(II) Development of significant matters and analysis of their impacts and solutions

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□

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(III) Undertakings not yet performed after the due date during the reporting period by the Company’s beneficial controller(s), shareholder(s), acquirer(s), or the Company

□ Applicable √Not applicable

During the reporting period, there were no incidents of undertaking not yet performed after the due date by the Company’s beneficial controller(s), shareholder(s), acquirer(s) or the Company.

(IV) Estimate of operating results for the year of 2018

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.

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(V) Securities investment

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During the reporting period, there were no securities investments.

(VI) Particulars of entrusted wealth management

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Unit: RMB (in ten thousand)

	Source of funding for	Subscription amount of
			Amount of undue principal and revenue
Product type	entrusted wealth	entrusted wealth		Overdue balance
	management	management
Bank wealth
	Self-owned funds	123,000.00	58,000.00	-
management products

(VII) Derivatives investment

√Applicable □ Not applicable

Unit: RMB (in ten thousand)

Nam	Conn	Wheth	Type of	Initial	Effective	Expiry	Investme			Amo	Investmen	Proportio	Actual
e of	ectio	er or	derivatives	investme	Date	Date	nt at the			unt of	t at the	n of	amount
oper	n	not a	investment	nt of			beginnin		A	provi	end of the	investme	of
ators		conne		derivative s investme nt			g of the	Amount of	mount of	sion	reporting	nt to the	profit
of		cted					reporting			for	period	net asset	and
								purchase	disposal
deriv		transa					period			impai		of the	loss
								during the	during
ative		ction								rment		Company	during
								reporting	the
s										(if		at the end	the
								period	reporting
inves										any)		of the	reporti
tmen									period			reporting	ng
t												period	period
												(%)
Bank	No	No	Forward	505005	1 Januar	30 Septe	5,050.05	20,011.45	16,005.35		9,056.15	1.29	-563.24
			fi	,.	2018	b 20
			oregn		y	mer

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exchange 18 contracts Total 5,050.05 -- -- 5,050.05 20,011.45 16,005.35 9,056.15 1.29 -563.24 Source of derivatives Export trade payment investment funding Litigation involved (if Not applicable applicable) Date of the announcement disclosing the approval of 30 March 2018 derivatives investment by the Board (if any) Date of the announcement disclosing the approval of Not applicable derivatives investment during shareholders’ meetings (if any) The derivatives business conducted by the Company mainly are the forward foreign exchange contracts entered into for the purpose of avoiding the risk of foreign exchange fluctuations related to the overseas sales receivables. The Company determines a reasonable range of foreign exchange Risk analysis of positions in rates to achieve the hedging purpose. derivatives and explanations of risk control measures (including The Company has formulated the “Management Measures for the Foreign Exchange Capital but not limited to market risk, Business” and “the Internal Control System for Forward Foreign Exchange Capital Transactions”. liquidity risk, credit risk, The measures specifically regulate the basic principles, operation rules, risk control measures and operation risk, legal risk etc.) internal controls that shall be followed when engaging in the business of foreign exchange during the reporting period 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 The assessment of the fair value of the derivatives carried out by the Company mainly represents product fair value of invested the outstanding foreign exchange forward contracts entered into by the Company and banks, which derivatives during the reporting are recognized as transactional financial assets or liabilities based on the difference between the period, where specific methods quotation of the outstanding foreign exchange forward contracts and the forward exchange rate as and relevant assumptions and at the end of the period. During the reporting period, the Company recognized a gain on change in parameters used in the analysis fair value of the derivatives of RMB -5.6445 million, investment gain amounted to RMB 0.0121 of derivatives’ fair value shall million, resulting in a total profits or losses of RMB -5.6324 million. be disclosed

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.

*The Company has received a new business licence bearing the Company’s new Chinese name“ 海 信家電集團股份有限公司 ”. However, the Company has yet to obtain the Certificate of Registration of Alteration of Name of Registered Non-Hong Kong Company to be issued by the Companies Registry in Hong Kong to reflect the change of Chinese and English names of the Company. Please refer to the announcement of the Company regarding change of company name

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dated 25 October 2018 for further details.

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 Home Appliances Group Co., Ltd.

Tang Ye Guo

Chairman

Foshan City, Guangdong, the PRC, 25 October 2018

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. Zhong Geng Shen and Mr. Cheung Sai Kit.

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