2019 First Quarterly Report of Qingdao Haier Co., Ltd.
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
Contents
I. IMPORTANT NOTICE .......................................................................................................................... 3 II. COMPANY PROFILE ........................................................................................................................... 3 III. SIGNIFICANT EVENTS ..................................................................................................................... 8 IV. APPENDIX ......................................................................................................................................... 11（Note: This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shallprevail.）
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
I. IMPORTANT NOTICE
1.1 The Board of Directors, the Board of Supervisors, directors, supervisors and senior management of Qingdao Haier Co., Ltd. (“the Company”) hereby assure that the content set out in the quarterly report is true, accurate and complete, and free from any false record, misleading representation or material omission, and are individually and collectively responsible for the content set out therein.
1.2 Information of Directors absent. from the meeting
|||||||||
|-|-|-|-|-|-|-|-|
||Position of director||Name of director absent from||Reason for the absence of||Name of proxy|
||absent from the meeting||the meeting||director from the meeting|||
|Director||Liu Haifeng||Personal affair||Wu Changqi||

 1.3 Liang Haishan (legal representative of the Company), Gong Wei (chief financial officer of the Company) and Ying Ke (the person in charge of accounting department) hereby certify that the financial statements set out in the quarterly report is true, accurate and complete.
1.4 The first quarterly report of the Company has not been audited.
II. COMPANY PROFILE
2.1 Key financial data
Unit and Currency: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||||Increase/decrease at the|
|||||At the end of last year|||||
|||At the end of the||||||end of the reporting period|
|||reporting period||After the||Before the||compared with the end of|
|||||Adjustment||Adjustment||last year (%)|
|Total assets|177,444,803,072.13||166,699,544,243.79||166,699,544,243.79||6.45||
|Net assetsattributable toshareholders oflisted companies|41,076,912,031.44||39,402,350,791.68||39,402,350,791.68||4.15||
|||At the beginning of||At the beginning of last year|||||
|||the year to the end of||to the end of the reporting||||Yoy change (%)|
|||the reporting period||period of last year|||||

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||After the||Before the|||
|||||Adjustment||Adjustment|||
|Net cash flowsfrom operatingactivities|1,323,519,988.31||2,170,214,541.28||1,990,934,744.45||-39.01||
|||||At the beginning of last year|||||
|||||to the end of the reporting|||||
|||At the beginning of|||||||
|||||period of last year|||||
|||the year to the end of||||||Yoy change (%)|
|||the reporting period|||||||
|||||After the||Before the|||
|||||Adjustment||Adjustment|||
|Operatingrevenue|48,043,265,870.34||43,609,601,739.36||42,655,164,567.37||10.17||
|Net profitsattributable toshareholders oflisted companies|2,136,268,479.08||1,952,610,308.35||1,979,995,364.53||9.41||
|Net profits afternon-recurringprofit or lossattributable toshareholders oflisted companies|1,887,324,275.73||1,761,919,417.70||1,761,919,417.70||7.12||
|Weightedaverage returnon net assets (%)|6.62||7.02||5.99||decrease 0.40 percent point||
|Basic earningsper share (RMBper share)|0.335||0.320||0.325||4.69||
|Diluted earningsper share (RMBper share)|0.323||0.317||0.321||1.89||

Note：In Q1 of 2019, the Company's income from white goods& kitchen& bathroom electric appliances increased by13.3%; not considering that Candy is consolidated in the statement, the Company's income from white goods& kitchen& bathroom electric appliances increased by8.1%. 1) Chinese market. Under the adverse environment of business downturn in the industry, the Company maintained an increasing trend for all lines of products through deepening the transformation of retail and boosting full-network management and four-in-one network. According to the monitored data of CMM, in January-March 2019, retail sales of Haier brand refrigerator, washing machine, household air
conditioners, water heaters, kitchen ventilators and gas stoves increased 1.57, 3.06, 1.26, 1.43, 1.37 amd
1.45 percentage points on year-on-year basis, respectively; Casarte maintained rapid growth in Q1 and
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
constantly increased its market share. 2) Overseas market. Based on the independent brands and the three-in-one layout, the Company went deeply into the global market and maintained rapid growth in the overseas market. The income increase in North America (GEA) is more than10% (on the USD standard); in January 2019, the Company accomplished the delivery of Candy. After the delivery, the integrated operation is smooth and Candy maintained good development trend in January-March.
Non-recurring profit or loss items and amount
√Applicable□ Not Applicable
Unit and Currency: RMB
|||||
|-|-|-|-|
||||Amount for the current|
||Items|||
||||period|
|Profit or loss from disposal of non-current assets||-7,007,479.65||
|Tax refund, reduction or exemption with approval exceeding authorityor without official approval or occasionally||||
|Government grants included in current profit or loss, except thatclosely related to the normal operating business, complied withrequirements of the national policies, continued to be granted with theamount and quantity determined under certain standards||27,414,780.52||
|Profit and loss of changes in fair value arising from holding oftrading financial assets and trading financial liabilities except forvalid straddle business relevant to normal business of thecompany, as well as investment gain realized from disposal oftrading financial assets, trading financial liabilities, financialassets available for sale||211,562,253.14||
|Other non-operating income and expenses except theaforementioned items||84,476,113.57||
|Minority interests(after tax)||-51,290,873.00||
|Income tax||-16,210,591.23||
|Total||248,944,203.35||

 2.2 Table of total number of shareholders, top ten shareholders, top ten common shareholders (or the shareholders without selling restrictions) by the end of the reporting period
Unit: Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of shareholders||||172,948||||
||Shareholdings of top ten shareholders|||||||
||Name of shareholder|Number of|Perce||Number of|Status of shares|Nature of|
||(full name)|shares held at|ntage||shares held|pledged or frozen|shareholder|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||the end of the||(%)|subject to|||||||
||||period|||selling||Status|Number||||
|||||||restrictions|||||||
|Haier ElectricAppliancesInternational Co., Ltd.||1,258,684,824||19.76|||Nil|||||Domesticnon-state-owned legal entity|
|Haier GroupCorporation||1,072,610,764||16.84|||Nil|||||Domesticnon-state-owned legal entity|
|Hong Kong SecuritiesClearing Co., Ltd||605,276,447||9.50|||Unknown|||||Unknown|
|GIC PRIVATELIMITED||232,920,332||3.66|||Unknown|||||Foreign legalentity|
|China SecuritiesFinance CorporationLimited||182,592,697||2.87|||Unknown|||||Unknown|
|Qingdao Haier Venture& InvestmentInformation Co.,Ltd.(青岛海尔创业投资咨询有限公司)||172,252,560||2.70|||Nil|||||Domesticnon-state-owned legal entity|
|National socialsecurity fund Portfolio104||97,799,981||1.54|||Unknown|||||Unknown|
|CLEARSTREAMBANKING S.A. (note)||90,926,856||1.43|||Unknown|||||Foreign legalentity|
|Central Huijin AssetManagement Ltd.||69,539,900||1.09|||Unknown|||||Unknown|
|Qingdao HaichuangzhiManagementConsulting Enterprise(Limited Partnership)||68,583,083||1.08|||Nil|||||Domesticnon-state-owned legal entity|
||Shareholdings of top ten shareholders not subject to selling restrictions||||||||||||
||Name of shareholder||||Number of shares|||Class and number of shares|||||
||||||held not subject to||||||||
||||||selling restrictions|||Class|||Number||
|Haier Electric Appliances InternationalCo., Ltd.||||1,258,684,824|||RMB ordinary|||1,258,684,824|||
|Haier Group Corporation||||1,072,610,764|||RMB ordinary|||1,072,610,764|||
|Hong Kong Securities Clearing Co.,Ltd.||||605,276,447|||RMB ordinary|||605,276,447|||
|GIC PRIVATE LIMITED||||232,920,332|||RMB ordinary|||232,920,332|||

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
|||||
|-|-|-|-|
|China Securities Finance CorporationLimited|182,592,697|RMB ordinary|182,592,697|
|Qingdao Haier Venture & InvestmentInformation Co., Ltd.(青岛海尔创业投资咨询有限公司)|172,252,560|RMB ordinary|172,252,560|
|National social security fund, Portfolio104|97,799,981|RMB ordinary|97,799,981|
|CLEARSTREAM BANKING S.A.|90,926,856|Overseas listedforeign shares|90,926,856|
|Central Huijin Asset Management Ltd.|69,539,900|RMB ordinary|69,539,900|
|Qingdao Haichuangzhi ManagementConsulting Enterprise (LimitedPartnership)|68,583,083|RMB ordinary|68,583,083|
|Related-parties or parties acting inconcert among the aforesaidshareholders|(1) Haier Electric Appliances International Co., Ltd. is aholding subsidiary of Haier Group Corporation. Haier GroupCorporation holds 51.20% of its equity. Qingdao HaierVenture & Investment Information Co., Ltd.( 青岛海尔创业投资咨询有限公司) Qingdao Haichuangzhi ManagementConsulting Enterprise (Limited Partnership) are parties actingin concert with Haier Group Corporation;(2) The Company is not aware of the existence of anyconnections of other shareholders.|||
|Explanation of preferential shareholderswith restoration of voting rights andtheir shareholdings|Not applicable|||

Note: This account is the Clearstream Banking collection account for the Company's D shares, which is the original data provided by the German securities registration agency to the Company after the merger according to local market practices and technical settings, not representing the ultimate shareholder. 2.3 Table of total number of preferential shareholders, top ten preferential shareholders, top ten preferential shareholders without selling restrictions by the end of the reporting period
□Applicable√ Not Applicable
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
III. SIGNIFICANT EVENTS
3.1 The major changes of and reasons for the items of accounting statement and financial indicators
√Applicable□ Not Applicable
1) Non-current assets due within one year increased over the beginning of the period by100%， mainly due to the revenue from the acquisition of CANDY in the currentperiod；
2) Use rights assets increased over the beginning of the period by100%，mainly due to use rights asset recognized according to Accounting Standards for Business Enterprises No. 21 -Leases；
3) Derivative financial liabilities decreased over the beginning of the period by54.70%，mainly due to changes in the value of foreign exchange derivative financialinstruments；
4) Contract liabilities decreased over the beginning of the period by37.05%，mainly due to the completion of the contract performance corresponding to the paymentreceived；
5) Non-current liabilities due within one year increased over the beginning of the period by194.11%，mainly because long-term borrowings will expire in oneyear.；
6) Lease liabilities increased over the beginning of the period by100%，mainly due to the lease liabilities recognized according to Accounting Standard for Business Enterprises No. 21 -Leases；
7) Deferred income tax liabilities increased over the beginning of the period by102.72%, mainly due to the revenue from the current acquisition of CANDY in the currentperiod；
8) Other comprehensive income decreased over the beginning of the period by47.93%，mainly due to the impact of the translation differences of thestatement；
9) Gain from disposal of asset decreased by351.67%yoy，mainly due to the scale of asset disposal decreased over the sameperiod；
10) Non-operating expenses increased by140.58%yoy，mainly due to the increase in one- off expenses recognized in the currentperiod；
11) Net cash flow from operating activities decreased by39.01%yoy， mainly due to the fact that some subsidiaries are stocked according to the rhythm ofuse；
12) Net cash flow from investing activities decreased by206.54%yoy， mainly due to the impact of cash expenditure resulting from the acquisition of CANDY in the currentperiod；
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
13) Net cash flow from financing activities increased by292.54%yoy，mainly due to the impact of borrowing resulting from the acquisition of CANDY in the current period.
3.2 Analysis on the progress of significant events and their impact and solution
√Applicable□ Not Applicable
(1) Externalguarantees： By the end of the reporting period, the external guarantees provided by the Company and its subsidiaries were guarantees between the Company and its subsidiaries, the total balance of which amounted to RMB19.461 billion, accounting for47.4% of theCompany’s latest net assets and10.9% of the latest total assets.
(2) Foreign exchangederivative： By the end of the reporting period, the aggregate balance of theCompany’s foreign exchange derivative transactions amounted to approximatelyUS$5.547 billion. (3) Entrusted wealth management: By the end of the reporting period, the balance of theCompany’s entrusted wealth management amounted to RMB5.873 billion, including two parts: (1) temporarily-idle fundraising wealth management: at the end of December 2018, theCompany’s proceeds for the issuance of convertible corporate bonds were fully landed. In order to improve the yield of temporarily-idle funds, the Company intends to carry out cash management with the amounts not exceed RMB1.5 billion after approved by the Board of Directors. By the end of the reporting period, the balance of the entrusted wealth management amounted to RMB1.5 billion; (2) wealth management of theCompany’s Hong Kong listed subsidiary: Haier Electronics Group Co., Ltd. (hereinafter referred to as “Haier Electronics” , stock code: 01169.HK), the holding subsidiary of the Company, has purchased some short-term principal-protected wealth management and structural deposits from the large commercial banks as an independently operating Hong Kong listed company in order to increase the efficiency of the use of idle funds within the authorities of the management and on the premise of safeguarding funds security. In the purchase process, all the necessary board reports were subject to the procedures such as filling andmanagement’ s review according to the regulations requirements for Hong Kong listed company, so as to ensure sufficient funds for the day-to-day operations of the main business and improve the shareholders' returns. By the end of the reporting period, the balance of the entrusted wealth management amounted to RMB4.373 billion.
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
3.3 The undertakings that have been past due and not been completed during the reporting period
□Applicable√ Not Applicable
3.4 Warning of and reasons for the forecast that the accumulated net profit for the period from the opening of the year to the end of the next reporting period may be a loss or there is a significant change as compared to that of the same period of last year
□Applicable√ Not Applicable
|||
|-|-|
|Name of the Company|Qingdao Haier Co., Ltd.|
|Legal representative|Liang Haishan|
|Date|29 April 2019|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
IV. APPENDIX
1.1 Financial Statements
Consolidated Balance Sheet
31 March 2019
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
||||
|-|-|-|
|Items|31 March 2019|31 December 2018|
|Current Assets:|||
|Cash and cash equivalents|35,978,171,406.89|37,456,355,407.28|
|Provision of settlement fund|||
|Funds lent|||
|Trading financial assets|1,931,696,758.82|1,775,648,387.76|
|Financial assets measured at fairvalue and changes of which included incurrent profit and loss|||
|Derivative financial assets|73,100,239.72|96,723,164.37|
|Bills receivable and accountsreceivable|26,227,996,470.93|24,652,130,810.52|
|Prepayments|695,077,852.98|594,555,015.00|
|Premiums receivable|||
|Reinsurance accounts receivable|||
|Reinsurance contract reservesreceivable|||
|Other receivables|1,910,441,148.95|1,626,975,864.98|
|Financial assets purchased underresale agreements|||
|Inventories|22,906,897,890.56|22,377,191,121.53|
|Contract assets|483,179,995.88|456,781,406.54|
|Assets held for sale|143,480,001.46|144,091,213.39|
|Non-current assets due within oneyear|301,303,935.61||
|Other current assets|5,879,549,636.56|5,079,878,909.67|
|Total current assets|96,530,895,338.36|94,260,331,301.04|
|Non-current assets:|||
|Loans and advances granted|||
|Debt investments|||
|Available-for-sale financial assets|||
|Other debt investments|||
|Held-to-maturity investments|||
|Long-term receivables|309,889,902.16|245,791,343.37|
|Long-term equity investments|14,102,908,167.25|13,966,481,596.07|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Investments in other equityinstruments|1,414,185,117.80|1,400,316,460.34|
|Other non-current financial assets|320,122,724.57|327,358,825.57|
|Investment properties|29,872,695.75|30,879,147.42|
|Fixed assets|18,343,588,537.78|17,319,638,881.37|
|Construction in progress|4,374,810,936.13|3,873,492,230.24|
|Biological assets for production|||
|Oil and gas assets|||
|Right-of-use assets|3,186,601,599.19||
|Intangible assets|11,135,182,900.84|9,209,242,721.71|
|Development expenditure|589,670,184.75|538,382,288.33|
|Goodwill|22,532,437,320.02|21,155,552,557.16|
|Long-term prepaid expenses|247,267,225.14|230,763,172.48|
|Deferred income tax assets|1,842,933,959.36|1,815,624,736.13|
|Other non-current assets|2,484,436,463.03|2,325,688,982.56|
|Total non-current assets|80,913,907,733.77|72,439,212,942.75|
|Total assets|177,444,803,072.13|166,699,544,243.79|
|Current liabilities:|||
|Short-term borrowings|7,849,028,283.66|6,298,504,892.57|
|Borrowings from central bank|||
|Placements from banks|||
|Trading financial liabilities|248,863,237.30|218,748,280.33|
|Financial liabilities measured at fairvalue and changes of which included incurrent profit and loss|||
|Derivative financial liabilities|16,127,928.30|35,603,754.54|
|Bills and accounts payable|47,451,772,978.04|47,385,218,141.38|
|Receipts in advance|13,440,073.43|14,681,466.58|
|Disposal of repurchased financialassets|||
|Absorbing deposit and deposit ininter-bank market|||
|Customer deposits for trading insecurities|||
|Amounts due to issuer for securitiesunderwriting|||
|Staff remuneration payable|2,483,732,174.94|2,651,399,418.05|
|Taxes payable|2,338,583,800.23|1,838,440,727.39|
|Other payables|14,183,974,878.35|12,685,677,402.91|
|Fees and commissions payable|||
|Reinsurance accounts payable|||
|Contract liabilities|3,450,932,910.36|5,482,325,888.59|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Liabilities held for sale|31,428,396.16|32,362,267.88|
|Non-current liabilities due withinone year|8,867,703,140.27|3,015,060,105.58|
|Other current liabilities|397,681,487.47|423,638,804.62|
|Total current liabilities|87,333,269,288.51|80,081,661,150.42|
|Non-current liabilities:|||
|Deposits for insurance contracts|||
|Long-term borrowings|13,578,285,442.78|15,541,466,325.22|
|Debentures payable|9,117,565,585.15|9,191,896,302.70|
|Including: preference Shares|||
|perpetual bonds|||
|Lease liabilities|2,861,619,896.53||
|Long-term employee benefitspayable|972,965,927.68|934,974,735.49|
|Long-term payable|110,931,073.95|106,763,243.99|
|Estimated liabilities|2,764,974,892.87|2,839,741,079.48|
|Deferred income|621,676,802.72|643,551,987.30|
|Deferred income tax liabilities|821,712,030.49|405,343,787.76|
|Other non-current liabilities|2,101,335,708.92|1,823,866,693.93|
|Total non-current liabilities|32,951,067,361.09|31,487,604,155.87|
|Total liabilities|120,284,336,649.60|111,569,265,306.29|
|Owners’ equity（or shareholder’sequity）：|||
|Paid-in capital (or share capital )|6,368,416,700.00|6,368,416,700.00|
|Other equity instruments|904,485,788.71|904,485,788.71|
|Including: preference shares|||
|perpetual bonds|||
|Capital reserve|2,117,379,369.01|2,208,773,474.57|
|Less: treasury stock|||
|Other comprehensive income|402,319,213.59|772,632,347.35|
|Surplus reserve|2,288,301,317.10|2,288,301,317.10|
|General risk provisions|||
|Undistributed profits|28,996,009,643.03|26,859,741,163.95|
|Total equity attributable to owners(or shareholder) of the parent company|41,076,912,031.44|39,402,350,791.68|
|Minority interests|16,083,554,391.09|15,727,928,145.82|
|Total owners’ equity (orshareholders’ equity)|57,160,466,422.53|55,130,278,937.50|
|Total liabilities and owners’equities (or shareholders’ equity)|177,444,803,072.13|166,699,544,243.79|

Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
Balance Sheet of the Parent Company
31 March 2019
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
||||
|-|-|-|
|Items|31 March 2019|31 December 2018|
|Current Assets:|||
|Cash and cash equivalents|3,294,316,781.75|7,068,899,574.96|
|Trading financial assets|||
|Financial assets measured at fair valueand changes of which included in currentprofit and loss|||
|Derivative financial assets|||
|Bills receivable and accounts receivable|252,252,237.39|222,622,017.43|
|Prepayments|22,994,199.46|28,809,797.43|
|Other receivables|2,076,957,299.28|2,082,767,166.58|
|Including: interests receivable|||
|dividends receivable|||
|Inventories|109,177,862.94|124,773,163.23|
|Contract assets|||
|Assets held for sale|||
|Non-current assets due within one year|||
|Other current assets|1,551,615,146.16|109,865,313.53|
|Total current assets|7,307,313,526.98|9,637,737,033.16|
|Non-current assets:|||
|Debt investments|||
|Available-for-sale financial assets|||
|Other debt investments|||
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|34,524,465,540.39|33,844,234,315.30|
|Other equity instruments investments|5,262,480.92|5,262,480.92|
|Other non-current financial assets|||
|Investment properties|||
|Fixed assets|118,109,691.36|119,546,157.40|
|Construction in progress|52,582,249.41|37,655,076.18|
|Biological assets for production|||
|Oil and gas assets|||
|Right-of-use assets|||
|Intangible assets|17,125,291.81|17,186,540.33|
|Development expenses|||
|Goodwill|||
|Long-term prepaid expenses|6,193,430.63|5,779,229.64|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Deferred income tax assets|81,511,748.07|81,511,748.07|
|Other non-current assets|30,058,794.50|28,632,829.14|
|Total non-current assets|34,835,309,227.09|34,139,808,376.98|
|Total assets|42,142,622,754.07|43,777,545,410.14|
|Current liabilities:|||
|Short-term borrowings|1,500,000,000.00|1,500,000,000.00|
|Trading financial liabilities|||
|Financial liabilities measured at fairvalue and changes of which included incurrent profit and loss|||
|Derivative financial liabilities|||
|Bills payable and accounts payable|213,644,252.46|334,747,358.40|
|Receipts in advance|||
|Contract liabilities|2,676,603,627.91|2,391,211,509.89|
|Staff remuneration payable|21,200,110.05|65,387,056.03|
|Taxes payable|87,613,612.64|67,279,606.39|
|Other payables|20,041,071,781.16|21,834,869,774.34|
|Including: interests payable|||
|dividends payable|||
|Liabilities held for sale|||
|Non-current liabilities due within oneyear|||
|Other current liabilities|1,869,747.57|2,089,282.56|
|Total current liabilities|24,542,003,131.79|26,195,584,587.61|
|Non-current liabilities:|||
|Long-term borrowings|||
|Debentures payable|2,535,865,514.77|2,510,530,062.86|
|Including: preference shares|||
|perpetual bonds|||
|Leasing liabilities|||
|Long-term payable|20,000,000.00|20,000,000.00|
|Estimated liabilities|||
|Deferred income|56,820,000.00|67,360,000.00|
|Deferred income tax liabilities|29,485,678.28|29,485,678.28|
|Other non-current liabilities|||
|Total non-current liabilities|2,642,171,193.05|2,627,375,741.14|
|Total liabilities|27,184,174,324.84|28,822,960,328.75|
|Owners’ equity (or shareholders’equity):|||
|Paid-in capital (or share capital )|6,368,416,700.00|6,368,416,700.00|
|Other equity instruments|473,061,264.64|473,061,264.64|
|Including: preference shares|||

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|perpetual bonds|||
|Capital reserve|4,182,825,672.98|4,182,825,672.98|
|Less: treasury stock|||
|Other comprehensive income|13,005,452.25|7,791,344.47|
|Surplus reserve|1,683,155,091.65|1,683,155,091.65|
|Undistributed profits|2,237,984,247.71|2,239,335,007.65|
|Total owners’ equity (or shareholders’equity)|14,958,448,429.23|14,954,585,081.39|
|Total liabilities and owners’ equity(or shareholders’ equity)|42,142,622,754.07|43,777,545,410.14|

Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke
Consolidated Income Statement
January-March 2019
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
||||
|-|-|-|
|Items|First quarter of 2019|First quarter of 2018|
|Ⅰ.Total operating revenue|48,043,265,870.34|43,609,601,739.36|
|Including: operating revenue|||
|interest income|||
|insurance premiums earned|||
|fee and commission income|||
|Ⅱ. Total cost of operations|45,590,068,619.86|41,368,597,195.96|
|Including: operating cost|34,031,470,881.04|30,999,495,660.70|
|interest expenses|||
|Fee and commission expenses|||
|Insurance withdrawal payment|||
|Net payment from indemnity|||
|Net provisions withdrew for insurancecontract|||
|Insurance policy dividend paid|||
|Reinsurance cost|||
|Taxes and surcharges|231,507,156.07|224,461,457.41|
|Selling expenses|7,200,387,965.14|6,423,248,604.88|
|Administrative expenses|1,868,650,431.02|1,646,313,944.01|
|R&D expenses|1,534,693,885.11|1,307,185,173.77|
|Financial expenses|441,163,370.56|518,426,762.70|
|Including: interest expenses|410,800,313.48|345,053,255.05|
|interest income|123,961,763.88|135,923,774.22|
|Loss on assets impairment|215,322,646.22|168,457,066.31|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Loss on credit impairment|66,872,284.70|81,008,526.18|
|Add: Other income|99,386,924.79|105,727,350.18|
|Investment income (losses arerepresented by “-”)|295,937,088.57|243,010,339.90|
|Including: Investment income ofassociates and joint ventures|||
|Exchange gain (losses are represented by“-”)|||
|Gains on net exposure hedges (losses arerepresented by “-”)|||
|Income from change in fair value (lossesare represented by “-”)|221,898,309.95|207,293,485.79|
|Gain from disposal of assets (losses arerepresented by “-”)|-3,192,061.07|1,268,375.75|
|Ⅲ.Operating profit (losses are represented by“-”)|3,067,227,512.72|2,798,304,095.02|
|Add: non-operating income|105,739,702.28|111,872,540.18|
|Less: non-operating expenses|21,263,588.71|8,838,321.34|
|Ⅳ. Total profit (total losses are represented by“-”)|3,151,703,626.29|2,901,338,313.86|
|Less: income tax expense|485,529,907.56|460,952,972.84|
|Ⅴ. Net profit (net losses are represented by “-”)|2,666,173,718.73|2,440,385,341.02|
|(I) Classification by continuous operation|||
|1.Net profit from continuous operation(net losses are represented by “-”)|2,666,173,718.73|2,440,385,341.02|
|2. Net profit from discontinuousoperation (net losses are represented by “-”)|||
|(II)Classification by ownership of theequity|||
|1. Net profit attributable to shareholdersof the Parent Company (net losses arerepresented by “-”)|2,136,268,479.08|1,952,610,308.35|
|2. Profit or loss attributable to minorityshareholders (net losses are represented by “-”)|529,905,239.65|487,775,032.67|
|VI. Other comprehensive income, net of tax|-416,973,681.83|-333,103,336.79|
|Other comprehensive income attributable toowners of the Parent Company, net of tax|-370,313,133.76|-287,601,356.58|
|(I) Other comprehensive income thatcannot be reclassified into the profit or loss|-1,616,393.65|-1,958,743.03|
|1. Changes arising from re-measurementof defined benefit plans|-1,296,966.52|-1,280,674.80|
|2. Other comprehensive income thatcannot be transferred into profit or loss under|||

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|equity method|||
|3. Changes in fair value of investments inother equity instruments|-319,427.13|-678,068.23|
|4. Changes in fair value of credit risks ofthe enterprise|||
|(II) Other comprehensive income to bereclassified into the profit or loss|-368,696,740.11|-285,642,613.55|
|1. Other comprehensive income that canbe transferred into profit or loss under equitymethod|-34,948,498.63|-42,701,390.85|
|2. Changes in fair value of other debtinvestments|||
|3. Gain or loss from changes in fair valueof available-for-sale financial assets|||
|4. Reclassified financial assets that arecredited to other comprehensive income|||
|5. Gain or loss arising fromreclassification from held-to-maturityinvestments to available-for-sale financial assets|||
|6. Credit impairment provision for otherdebt investments|||
|7. Reserve for cash flow hedging(Effective portion of gain or loss arising fromcash flow hedging)|-16,356,811.45|25,699,770.15|
|8. Exchange differences on translation offinancial statementsdenominated in foreign currencies|-317,391,430.03|-268,640,992.85|
|9.Others|||
|Other comprehensive incomeattributable to minority shareholders,net of tax|-46,660,548.07|-45,501,980.21|
|Ⅶ. Total comprehensive income|2,249,200,036.90|2,107,282,004.23|
|Total comprehensive income attributable tothe owners of Parent Company|1,765,955,345.32|1,665,008,951.77|
|Total comprehensive income attributable tothe minority shareholders|483,244,691.58|442,273,052.46|
|Ⅷ . Earnings per share:|||
|(I) Basic earnings per share(RMB/share)|0.335|0.320|
|(II) Diluted earnings per share(RMB/share)|0.323|0.317|

Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
Income Statement of the Parent Company
January-March 2019
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
||||
|-|-|-|
|Items|First quarter of 2019|First quarter of 2018|
|I. Operating revenue|653,050,823.21|743,844,065.67|
|Less: Operation cost|465,367,983.61|533,278,383.46|
|Taxes and surcharges|4,366,015.94|5,402,608.47|
|Selling expenses|54,929,009.03|68,121,527.59|
|Administrative expenses|47,142,099.07|65,562,500.28|
|R&D expenses|51,156,977.29|42,654,252.11|
|Financial expenses|72,483,128.32|25,428,042.84|
|Including: interest expenses|53,825,389.44|59,353,054.62|
|interest income|10,654,831.16|34,863,886.90|
|Loss in assets impairment|-573,267.56||
|Loss on credit impairment||10,058,187.90|
|Add: Other incomes|10,540,000.00|5,969,287.05|
|Investment income (losses arerepresented by “-”)|26,461,323.35|50,428,218.53|
|Including: investment income ofassociates and joint ventures|||
|Gains on net exposure hedges (losses arerepresented by “-”)|||
|Income from change in fair value(losses are represented by “-”)|||
|Gain from disposal of assets (losses arerepresented by “-”)|||
|II. Operating profit (losses are represented by“-”)|-4,819,799.14|49,736,068.60|
|Add: non-operating income|5,432,063.63|8,370,547.68|
|Less: non-operating expenses|1,963,024.43|233,919.53|
|III. Total Profit (total losses are represented by“-”)|-1,350,759.94|57,872,696.75|
|Less: income tax expense||1,116,671.73|
|IV. Net Profit (net losses are represented by “-”)|-1,350,759.94|56,756,025.02|
|(I) Net profit from continuous operations (netlosses are represented by “-”)|-1,350,759.94|56,756,025.02|
|(II) Net profit from discontinuous operations(net losses are represented by “-”)|||
|V. Other comprehensive income, net of tax|5,214,107.78|7,680,578.08|
|(I) Other comprehensive income that cannotbe reclassified into the profit or loss||-108,758.38|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|1. Changes arising from re-measurement ofdefined benefit plans|||
|2. Other comprehensive income that cannotbe transferred into profit or loss under equitymethod|||
|3 Changes in fair value of investments inother equity instruments||-108,758.38|
|4.Changes in fair value of credit risks of theenterprise|||
|(II) Other comprehensive income to bereclassified into the profit or loss|5,214,107.78|7,789,336.46|
|1. Other comprehensive income that can betransferred into profit or loss under equitymethod|5,214,107.78|7,789,336.46|
|2. Changes in fair value of other debtinvestments|||
|3. Gain or loss from changes in fair valueof available-for-sale financial assets|||
|4. Reclassified financial assets that arecredited to other comprehensive income|||
|5. Gain or loss arising from reclassificationfrom held-to-maturity investments toavailable-for-sale financial assets|||
|6. Credit impairment provision for otherdebt investments|||
|7. Reserve for cash flowhedging (Effective portion of gain orloss arising from cash flow hedging)|||
|8. Exchange differences on translation offinancial statements denominated in foreigncurrencies|||
|9. Others|||
|VI. Total comprehensive income|3,863,347.84|64,436,603.10|
|VII. Earnings per share:|||
|(I) Basic earnings per share(RMB/ share)|||
|(II) Diluted earnings per share(RMB/share)|||

Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke
Consolidated Cash Flow Statement
January-March 2019
Prepared by: Qingdao Haier Co., Ltd.
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
||||
|-|-|-|
|Items|First quarter of 2019|First quarter of 2018|
|I. Cash flows from operating activities:|||
|Cash received from the sale of goodsandrendering of services|49,421,675,912.63|45,140,141,162.72|
|Net increase in customer and interbankdeposits|||
|Net increase in borrowing from thecentral bank|||
|Net cash increase in borrowing fromother financial institutes|||
|Cash received from premiums underoriginal insurance contract|||
|Net cash received from reinsurancebusiness|||
|Net increase in deposits of policyholders and investment|||
|Cash received from interest, fee andcommissions|||
|Net increase in cash borrowed|||
|Net increase in cash received fromrepurchase operation|||
|Net cash received from securities tradingagency services|||
|Refunds of taxes|285,338,702.71|242,113,942.09|
|Cash received from other relatedoperating activities|1,096,260,909.89|264,852,616.74|
|Sub-total of cash inflows fromoperating activities|50,803,275,525.23|45,647,107,721.55|
|Cash paid on purchase of goods andservices|37,483,129,681.61|32,683,623,829.10|
|Net increase in loans and advances ofcustomers|||
|Net increase in deposits in PBOC andinterbank|||
|Cash paid for compensation paymentsunder original insurance contract|||
|Net increase in financial assets held fortrading purposes|||
|Net increase in placements with banks|||
|Cash paid for interest, fees and|||

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|commissions|||
|Cash paid for insurance policy dividend|||
|Cash paid to and on behalf of employees|5,404,866,583.57|4,555,705,272.24|
|Cash paid for all types of taxes|2,063,070,287.30|2,205,553,946.08|
|Cash paid to other operation relatedactivities|4,528,688,984.44|4,032,010,132.85|
|Sub-total of cash outflows fromoperating activities|49,479,755,536.92|43,476,893,180.27|
|Net cash flows from operatingactivities|1,323,519,988.31|2,170,214,541.28|
|II. Cash flows from investing activities:|||
|Cash received from disposal ofinvestments|1,006,225,645.16|124,427,666.14|
|Cash received from return oninvestments|142,671,678.53|488,520.47|
|Net cash received from the disposal offixed assets, intangible assets and otherlong term assets|183,509,600.45|88,176,463.21|
|Net cash received from disposal ofsubsidiaries and other operating entities|||
|Cash received from other investmentrelated activities|4,692,533.64|67,249,789.10|
|Sub-total of cash inflows frominvesting activities|1,337,099,457.78|280,342,438.92|
|Cash paid on purchase of fixed assets,intangible assets and other long termassets|1,536,865,993.41|1,766,703,576.13|
|Cash paid for investments|2,436,314,478.97|251,597,612.40|
|Net increase in secured loans|||
|Net cash paid on acquisition ofsubsidiaries and other operating entities|2,642,988,600.64||
|Cash paid on other investmentrelated activities|48,510,922.74|15,000.00|
|Sub-total of cash outflows frominvesting activities|6,664,679,995.76|2,018,316,188.53|
|Net cash flows from investingactivities|-5,327,580,537.98|-1,737,973,749.61|
|III. Cash flows from financing activities:|||
|Cash received from capital contributions|12,389,310.79|8,278,135.66|
|Including: cash received from capitalcontributions by minority shareholders ofsubsidiaries|||
|Cash received from borrowings|6,842,877,477.22|3,589,764,080.03|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Cash received from issuing bonds|||
|Cash received from other financingrelated activities||119,174,742.18|
|Sub-total of cash inflows fromfinancing activities|6,855,266,788.01|3,717,216,957.87|
|Cash paid on repayment of borrowings|3,236,695,125.56|5,291,464,063.74|
|Cash paid on distribution of dividends,profits, or interest expenses|89,327,191.79|38,225,632.87|
|Including: dividend and profit paid tominority shareholders by subsidiaries|||
|Cash paid on other financing relatedactivities|304,245,626.88|62,515,783.81|
|Sub-total of cash outflows fromfinancing activities|3,630,267,944.23|5,392,205,480.42|
|Net cash flows from financingactivities|3,224,998,843.78|-1,674,988,522.55|
|IV. Effect of fluctuations in exchangerates on cash and cash equivalents|-140,942,937.33|-402,254,739.32|
|V. Net increase in cash and cashequivalents|-920,004,643.22|-1,645,002,470.20|
|Add: balance of cash and cashequivalents at the beginning of theperiod|36,044,777,414.04|34,861,907,957.01|
|VI. Balance of cash and cash equivalentsat the end of the period|35,124,772,770.82|33,216,905,486.81|

Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke
Cash Flow Statement of the Parent Company
January-March 2019
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
||||
|-|-|-|
|Items|First quarter of 2019|First quarter of 2018|
|I. Cash flows from operating activities:|||
|Cash received from the sale of goodsand rendering of services|453,512,055.88|816,513,664.12|
|Refunds of taxes|2,857,893.58|2,249,452.13|
|Cash received from other relatedoperating activities|12,380,281.31|21,182,595.59|
|Sub-total of cash inflows fromoperating activities|468,750,230.77|839,945,711.84|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Cash paid on purchase of goods andservices|13,988,526.97|221,179,942.07|
|Cash paid to and on behalf of employees|164,517,087.07|131,351,975.78|
|Cash paid for all types of taxes|15,152,947.75|29,006,267.68|
|Cash paid to other operation relatedactivities|81,138,568.27|116,047,065.74|
|Sub-total of cash outflows fromoperating activities|274,797,130.06|497,585,251.27|
|Net cash flows from operatingactivities|193,953,100.71|342,360,460.57|
|II. Cash flows from investing activities:|||
|Cash received from disposal ofinvestments||78,325.00|
|Cash received from return oninvestments|1,232,418,382.82|12,000,613.55|
|Net cash received from the disposal offixed assets, intangible assets and otherlong term assets|||
|Net cash received from disposal ofsubsidiaries and other operating entities|||
|Cash received from other investmentrelated activities|||
|Sub-total of cash inflows frominvesting activities|1,232,418,382.82|12,078,938.55|
|Cash paid on purchase of fixed assets,intangible assets and other long termassets|18,686,978.91|11,279,152.65|
|Cash paid for investments|2,164,037,398.72||
|Net cash paid on acquisition ofsubsidiaries and other operating entities|||
|Cash paid on other investment relatedactivities|||
|Sub-total of cash outflows frominvesting activities|2,182,724,377.63|11,279,152.65|
|Net cash flows from investingactivities|-950,305,994.81|799,785.90|
|III. Cash flows from financing activities:|||
|Cash received from capital contributions|||
|Cash received from borrowings|||
|Cash received from other financingrelated activities||758,777,670.99|
|Sub-total of cash inflows fromfinancing activities||758,777,670.99|

2019 First Quarterly Report of Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Cash paid on repayment of borrowings|||
|Cash paid on distribution of dividends,profits, or interest expenses|16,258,125.00||
|Cash paid on other financing relatedactivities|2,998,907,357.18||
|Sub-total of cash outflows fromfinancing activities|3,015,165,482.18||
|Net cash flows from financingactivities|-3,015,165,482.18|758,777,670.99|
|IV. Effect of fluctuations in exchangerates on cash and cash equivalents|-3,064,416.93|-1,723.67|
|V. Net increase in cash and cashequivalents|-3,774,582,793.21|1,101,936,193.79|
|Add: balance of cash and cashequivalents at the beginning of the period|7,068,899,574.96|2,070,527,802.97|
|VI. Balance of cash and cash equivalentsat the end of the period|3,294,316,781.75|3,172,463,996.76|

Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke
1.2 The implementation of the new financial instrumental standards , the new income standards, new lease standards adjust the first implementation of the relevant items in financial statement at the beginning of year√Applicable□Not Applicable
The company has implemented the new Financial Instrument Standards and new income standards in advance since 2018. For details, please refer to the 2018 annual report disclosed on the same day as this periodic report. The new lease standards were implemented on 1 January 2019, no retrospective adjustments are required for the company's beginning and year-on-year data.
Explanation of the adjustment of each item
□Applicable√Not Applicable
Others
□Applicable√Not Applicable
2019 First Quarterly Report of Qingdao Haier Co., Ltd.
1.3 Explanation of the comparative data of prior period in the retrospective adjustment made according to the first implementation of the new financial instruments standards and new lease standards.
√Applicable□Not Applicable
Please refer to the above 1.2.
1.4 Audit report
□Applicable√Not Applicable