Haier Electronics : OPERATIONAL UPDATE FOR THE FIRST QUARTER ENDED 31 MARCH 2019

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.

HAIER ELECTRONICS GROUP CO., LTD.

海 爾 電 器 集 團 有 限 公 司 *

(incorporated in the Bermuda with limited liability)

(Stock Code: 1169)

OPERATIONAL UPDATE FOR

THE FIRST QUARTER ENDED 31 MARCH 2019

This is an announcement issued by Haier Electronics Group Co., Ltd. (the ''Company'', together with its subsidiaries, the ''Group'') and is being released for information purpose and pursuant to the Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ''Listing Rules'')) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) and Rule 13.09(2)(a) of the Listing Rules.

On or about 29 April 2019, the Company's controlling shareholder, Qingdao Haier Co., Ltd. (青島海爾股份有限公司) (''Qingdao Haier''), a company listed on the Shanghai Stock Exchange (''SSE'') (under stock code: 600690.SH) in the People's Republic of China (''PRC''), released its financial results for the first quarter ended 31 March 2019 (''Qingdao Haier Results Announcement''). Pursuant to the relevant rules of the SSE, Qingdao Haier shall file the quarterly and annual reports, including quarterly and annual financial information and certain operating statistics, respectively, with the SSE.

As at the date of this announcement, Qingdao Haier, the controlling shareholder of the Company, is beneficially interested in approximately 45.15% of the issued and outstanding share capital of the Company.

*For identification purposes only

- 1 -

The following are the operational updates of the Group which reflect certain operating statistics for the three months ended 31 March 2019 :

	For the 3 months ended
	31 March
	2019	2018	Changes in %
	RMB million	RMB million
	(Unaudited)	(Unaudited)
		(Restated)*
Group's revenue (before intersegment
elimination)
Washing machine business	5,094	4,899	4.0%
Water heater business	1,775	1,712	3.7%
Channel services business	16,482	16,742	-1.6%
Logistics business	2,209	2,125	4.0%
Group's consolidated revenue	20,630	20,589	0.2%
Group's net profit	934	849	10.0%
Profit attributable to owners of the
Company	919	833	10.3%

*The restatement is principally attributable to the merger accounting for business combinations under common control.

The Qingdao Haier Results Announcement prepared by Qingdao Haier can be accessible at SSE's website: http://www.sse.com.cn and Qingdao Haier's company website: http://www.haier.net.

The shareholders and potential investors of the Company should note that (i) the financial results disclosed in the Qingdao Haier Results Announcement are unaudited and (ii) the financial results of Qingdao Haier and its consolidated subsidiaries, including those contained in the Qingdao Haier Results Announcement, have been prepared in accordance with PRC generally accepted accounting principles (''PRC GAAP''), which are different from the International Financial Reporting Standards that the Company adopts to prepare and present the Company's financial results and related financial information.

The information disclosed in this announcement is prepared by the management of the Company based on the Company's internal information which has not been confirmed or reviewed by the auditors of the Company, and may differ from figures to be disclosed in the audited or unaudited consolidated financial statements to be published by the Company on an annual or semi-annual basis as applicable. Therefore, such information is provided to shareholders and potential investors as interim information for reference

- 2 -

only. Shareholders and potential investors of the Company's securities are advised not to rely unduly on such information, to consult their own professional advisers in this regard and exercise caution in dealing in the Company's securities.

By Order of the Board of

Haier Electronics Group Co., Ltd.

Zhou Yun Jie

Chairman

Hong Kong, 29 April 2019

This announcement is for information purpose and does not constitute an offer or an invitation to acquire or dispose of any securities or investment advice in any jurisdiction.

This announcement may contain or refer to forward-looking statements. All statements other than statements of historical fact included, or refer to, in this announcement may involve, without limitation, a number of risks, uncertainties or other factors beyond the Company's control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, general economic conditions, competition, new ventures, government regulations, interest rates, future terrorist acts, influenza, insurance, risks and/or factors detailed in the annual report of the Company for the year ended 31 December 2018, and other risks relating to our industry and business. The Company is under no obligation to (and expressly disclaim any such obligation to) update the forward-looking statements as a result of new information, future events or otherwise.

No statement in this announcement is intended to be a profit forecast and no statement in this announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

As at the date of this announcement, the executive Directors are Mr. Zhou Yun Jie (Chairman), Mr. Xie Ju Zhi and Mr. Li Hua Gang; the non-executive Directors are Mr. Liang Hai Shan, Dr. Wang Han Hua and Mr. Yang Guang; the independent non-executive Directors are Mr. Yu Hon To, David, Mrs. Eva Cheng Li Kam Fun and Mr. Gong Shao Lin.

- 3 -