Listing of Haier Smart Home's H-Shares to Establish "A＋D＋H" Global Capital Market Platform

Qingdao / Shanghai / Hong Kong / Frankfurt, 23 December 2020 - Haier Smart Home Co., Ltd. ("Haier Smart Home" or "the Company", stock code: 690D, 600690.SH, 6690.HK) announced that the Company's H-Shares will commence trading on the Main Board of the Hong Kong Stock Exchange with stock code 6690.HK.

To date, the privatization of Haier Electronics Group Co., Ltd. by Haier Smart Home by way of a scheme of arrangement has finally been completed. In accordance with the scheme document, the listing of the shares of Haier Electronics on the Main Board of the Hong Kong Stock Exchange (HKEX) was officially withdrawn at 9:00 am (HKT) today. Haier Electronics has become a wholly-owned subsidiary of Haier Smart Home. Haier Group remains to be the controlling shareholder of Haier Smart Home.

The Management of Haier Smart Home stated, "Haier Smart Home's listing at HKEX speaks for the Company's confidence over the Hong Kong capital market. Together with our shareholders, we are looking forward to witnessing the prosperous chapter of Haier Smart Home in an era of IoT in the Hong Kong capital market."

Global capital market platform yielding synergistic effect
Haier Smart Home is the leader in the global home appliances industry and global pioneer in providing smart home solutions, whose A-Shares are listed on the Shanghai Stock Exchange and D-Shares are listed on the Frankfurt Stock Exchange. After the completion of listing in Hong Kong, Haier Smart Home has become a tri-listed company of "A+D+H"-Shares, which synchronizes with the Company's global operations. As mentioned in the scheme document, after the privatization has become effective, Haier Smart Home and Haier Electronics are expected to achieve potential synergies in both business development and corporate governance, along with its expansion of competitive advantages.

Prior to the privatization, Haier Electronics was mainly engaged in the manufacturing of domestic washing machines, water heaters and water purifiers as well as the distribution business covering domestic sales channels, while Haier Smart Home was mainly engaged in the business of refrigerators, air conditioner and overseas household appliances. After the completion of the privatization, Haier Smart Home will aim to fully integrate with Haier Electronics to improve the comprehensiveness and depth of smart home solutions. The enlarged Haier Smart Home Group will also take this opportunity to further deepen the online and offline integration throughout the entire process, to enhance the user experience and loyalty and to build and share the Haier Smart Home Experiential Cloud platform across all categories.

After the completion of the privatization, the enlarged Haier Smart Home Group will share resources and build capacity throughout the entire value chain, including R&D, procurement, manufacturing, and distribution of products, to promote technical cooperation, facilitate result-sharing, and optimize operations. On one hand, the prior overlapping of products and channels of both parties can be eliminated, achieving significant synergies. On the other hand, the improvement of operation management such as reduced internal procedures and simplified approval process is expected to lower the sales and management costs. In addition, the operational risks will be reduced with more robust financial performance supported by a stronger balance sheet.

The enlarged Haier Smart Home Group will have a larger market capitalization, improved financial performance and a more diversified investor base than Haier Electronics Group, which is expected to enhance the Company's capital market profile and to improve liquidity. Moreover, after the completion of the privatization, Haier Smart Home Group will establish a unified capital market image and allow investors to focus on one listing company.

IoT based ecosystem brand strategy leading the world
In recent years, with the rapid development of technologies such as IoT, cloud computing big data and 5G networks, the home appliance industry sees a trend towards smart, full-suite and scenario-based solutions. Haier Smart Home, backed by its portfolio of interconnected home appliance products, its resources built with partners, its Haier Smart Home App and Experiential Cloud Platform, and its experience centers and franchised stores, provides smart home solutions suited for various lifestyle for users, aiming to build an IoT ecosystem brand of Haier Smart Home.

From 2017 to 2019, Haier Smart Home's revenue increased from RMB154.2 billion to RMB198.0 billion, with a CAGR of 13.3%. For the same period, the profit increased from RMB9.1 billion to RMB12.3 billion, with a CAGR of 16.3%. Among the total revenue, the smart home business accounted for a large proportion; in 2019, the revenue from smart home business (including the PRC and overseas markets) accounted for 89.4% of the total revenue.

After the listing in Hong Kong, Haier Smart Home will continue adhering to Haier's core value of "prioritizing users over the Company", capitalize on its RenDanHeYi management model and provide users globally with whole-process customized smart home solutions. Haier Smart Home is committed to creating an IoT smart home ecosystem brand and meeting users' needs for a better life experience.

About Haier Smart Home Co., Ltd.:
Haier is one of the world's leading manufacturers of household appliances with a focus on smart home solutions and customized mass production. Haier Smart Home Co., Ltd. develops, produces and distributes a wide range of household appliances. These include refrigerators, freezers, washing machines, air conditioners, water heaters, kitchen appliances as well as smaller household appliances and an extensive range of intelligent household appliances. The Company distributes its products through leading household brands such as Haier, Casarte, Leader, Candy, GE Appliances, AQUA and Fisher & Paykel. Haier Smart Home Co., Ltd. has launched Smart Home Experiential Cloud, which connects homes, users, enterprises and ecosystem partners, and facilitates the integration of Haier's online, offline and micro-store businesses and supports user interaction to further optimize the user experience.

IR Contact:
Yao Sun (Sophie) - Haier Smart Home Germany
T: +49 6172 9454 143
F: +49 6172 9454 42143
M: +49 160 9469 3601
Email: y.sun@haier.de