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

Apr 10, 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 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)

2018 FIRST 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 “Supervisory Committee”), the directors (the “Directors”), the supervisors (the “Supervisors”) and the senior management (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 first quarterly report.

4. The financial statements of the Company for the first 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 of
			this reporting period as
Items	This reporting period	The period last year	compared to the
			corresponding period last
			year (%)
Operatingrevenue (RMB)	8,974,222,298.65	7,708,966,633.23	16.41
Net profits attributable to shareholders of	287,986,771.63	256,258,113.99	12.38
listed company(RMB)
Net profits attributable to shareholders of	271,595,062.24	245,995,510.99	10.41
listed company after deducting
extraordinary profit and loss (RMB)
Net cash flow from operating activities	-676,019,105.62	-283,670,463.69	Not applicable
(RMB)
Basic earningsper share (RMB/share)	0.21	0.19	10.53
Diluted earningsper share (RMB/share)	0.21	0.19	10.53
Weighted average rate of return on net	4.37	5.13	-0.76
assets (%)
			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)	22,288,936,754.17	21,473,666,822.72	3.80
Net assets attributable to shareholders of	6,729,264,071.70	6,445,303,673.87	4.41
listed company(RMB)

Extraordinary profit and loss items and amounts

√Applicable Not applicable

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
	36,902.70
written off forprovision for impairment on assets)
Government subsidy recorded in the profits or losses of the current period
(except government subsidy which is closely related to the Company’s
	20,922,713.10
business and is entitled for fixed amounts or fixed percentage based on
unified standardspromulgated bythegovernment)
Non-operatingincome and expenses other than the aforementioned items	-1,816,862.48
Less: Effect of income tax	2,085,111.58

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Effect of minority interests (after tax)	665,932.35
	16,391,709.39
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								39,022
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	33.62%		458,176,069		0
Cental 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 Note2		Other	1.47%		20,039,186		0
China Life Insurance Co., Ltd. - Traditional - General Insurance - 005L-CT001		Other	0.73%		10,002,869		0
Taikang Life Insurance Co., Ltd. - Investment Link - Industry Configuration		Other	0.69%		9,448,120		0
China Construction Bank Corporation - Cathay Pacific Jinxin Securities Investment FundNote2		Other	0.65%		8,919,590		0
China Construction Bank Corporation - Huitianfu Consumer Industry Hybrid Securities Investment Fund		Other	0.59%		8,000,020		0
Zhang Shao Wu		Domestic naturalperson	0.53%		7,200,000		0
The shareholdingof the topten holders of ordinaryshares not subject to sellingrestrictions
				Number of shares		Class of shares
f hhld
Name o Sareoer				held not subject to		Class of shares			Quantity

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	sellingrestrictions
Qingdao Hisense Air-conditioning Company Limited	516,758,670		516,758,670
		RMB ordinaryshares
HKSCC Nominees Limited~~Note1~~	458,176,069	Overseas listed
			458,176,069
		foreign shares
Cental Huijin Asset Management Ltd.	26,588,700		26,588,700
		RMB ordinaryshares
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 FundNote2	20,039,186
			20,039,186
		RMB ordinaryshares
China Life Insurance Co., Ltd. - Traditional - General Insurance - 005L-CT001	10,002,869
			10,002,869
		RMB ordinaryshares
Taikang Life Insurance Co., Ltd. - Investment Link - IndustryConfiguration	9,448,120
			9,448,120
		RMB ordinaryshares
China Construction Bank Corporation - Cathay Pacific Jinxin Securities Investment FundNote2	8,919,590
			8,919,590
		RMB ordinaryshares
China Construction Bank Corporation - Huitianfu Consumer Industry Hybrid Securities Investment Fund	8,000,020
			8,000,020
		RMB ordinaryshares
ZhangShao Wu	7,200,000		7,200,000
		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, held a total of 97,202,000 H shares of the Company as at the end of the reporting period, representing 7.13% 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..

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

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

			Change （%）
Balance sheet items	Closing balance	Opening balance		Reason for the change
Accounts receivable	4,153,801,615.36	2,833,227,741.68	46.61	mainly due to the increase in scale of sales during the reporting period, resulting in an increase in accounts receivable at the end of the reporting period accordingly
Construction in	195,469,127.44	148,361,940.80	31.75	mainlydue to the increase in investment in

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progress				technological transformation of fixed assets at the end of the reporting period
	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	50,643,410.13	22,147,289.51	128.67	mainly due to the increase in government subsidy received
	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	157,361,489.93	99,485,764.98	58.17	mainly due to the increase in government subsidy received
Cash received from other investment related activities	400,000,000.00	2,100,000,000.00	-80.95	due to the decrease in redemption of wealth management products during the reporting period
Cash received from other investment related activities	400,000,000.00	900,000,000.00	-55.56	due to the decrease in redemption of wealth management products during the reporting period

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

□ Applicable √Not applicable

3. Undertakings not yet performed after the due date during the reporting period by the Company, shareholder(s), beneficial controller(s), acquirer(s), director(s), supervisor(s), senior management or other connected party(ies)

□ 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), connected party(ies), acquirer(s) and the Company.

4. Estimate of operating results for first six months 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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□Applicable √ Not applicable

5. 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			g of the	Amount of	mount of	sion	reporting	nt to the	profit
of		cted		s			reporting			for	period	net asset	and
								purchase	disposal
deriv		transa		investme			period			impai		of the	loss
								during the	during
ative		ction		nt						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
												(%)
			Forward
						31
			foreign		1 Januar
Bank	No	No		5050.05		March	5050.05	9,117.75	4,690.98		9,476.82	1.41	111.52
			exchange		y 2018
			contracts			2018
Total				5050.05	--	--	5050.05	9,117.75	4,690.98		9,476.82	1.41	111.52
Source of derivatives
						Export trade payment
investment funding
Litigation involved (if
						Not applicable
applicable)
Date of the announcement
disclosing the approval of						29 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 duringthe reporting				are recognized as transactional financial assets or liabilities based on the difference between the

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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 1.0543 million, investment gain amounted to RMB6.09 of derivatives’ fair value shall million, resulting in a total profits or losses of RMB1.1152 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.

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, 10 April 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. Xu Xiang Yi and Mr. Liu Xiao Feng.

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