Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
Stock Code: 600690 Short Name: Qingdao Haier
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd
Stock Code: 600690
INTELLIGENCE
CREATES SMART LIFE
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
Contents
I. Important Notice ......................................................................................................................... 3 II. Company Profile ......................................................................................................................... 3 III. Important Events ......................................................................................................................... 8 IV. Appendix .....................................................................................................................................18
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
I. Important Notice
1.1 The Board of Directors, the Board of Supervisors and 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 All directors of the Company have attended the Board meeting to consider and approve the quarterly report.
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 statement set out in the quarterly report is true, accurate and complete.
1.4 Third quarterly report of the Company has not been audited.
II. Company Profile
2.1 Major financial information
Unit and Currency: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||At the end of last year||||Increase/dec|
|||||||||rease at the|
|||||||||end of the|
|||||||||reporting|
|||As at the end of the|||||||
|||||||||period|
|||reporting period||After adjustment||Before adjustment|||
|||||||||compared|
|||||||||with the end|
|||||||||of last year|
|||||||||(%)|
|Total assets|144,448,659,020.58||131,469,157,348.79||131,255,290,325.24||9.87||
|Net assetsattributable toshareholders of|30,205,038,353.20||26,438,188,226.56||26,364,725,409.83||14.25||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||||||
|-|-|-|-|-|-|-|-|-|
|listed companies|||||||||
|||||As at the beginning of last year to the end of||||Increase/dec|
|||||the reporting period of last year||||rease for the|
|||As at the beginning|||||||
|||||(January to September)||||period|
|||of the year to the|||||||
|||||||||compared|
|||end of the reporting|||||||
|||||||||with the|
|||period|||||||
|||||||||correspondi|
|||(January to||After adjustment||Before adjustment|||
|||||||||ng period of|
|||September)|||||||
|||||||||last year|
|||||||||(%)|
|Net cash flowsfrom operatingactivities|14,160,052,998.94||4,945,944,554.94||4,934,382,297.60||186.30||
|||||As at the beginning of last year to the end of||||Increase/dec|
|||||the reporting period of last year||||rease for the|
|||As at the beginning|||||||
|||||(January to September)||||period|
|||of the year to the|||||||
|||||||||compared|
|||end of the reporting|||||||
|||||||||with the|
|||period|||||||
|||||||||correspondi|
|||(January to||After adjustment||Before adjustment|||
|||||||||ng period of|
|||September)|||||||
|||||||||last year|
|||||||||(%)|
|Operatingrevenue|119,189,613,634.20||84,367,342,584.55||84,270,593,385.38||41.27||
|Net profitsattributable toshareholders oflisted companies|5,682,361,717.64||3,826,984,146.82||3,823,106,782.95||48.48||
|Net profitsattributable toshareholders oflisted companieswithnon-recurringgain and lossdeducted|4,695,336,406.07||3,548,735,043.47||3,548,735,043.47||32.31||
|Weightedaverage return onequity (%)|19.51||15.76||15.79||Increased3.75%||
|Basic earningsper share (RMBper share)|0.932||0.627||0.627||48.64||
|Diluted earningsper share (RMBper share)|0.932||0.627||0.627||48.64||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
Notes:
1. From January to September 2017, theCompany’s revenue increased by41% compared to the corresponding period of last year, among which, revenue from refrigerator and freezer business increased by34%, revenue from washing machine business increased by41%, revenue from air conditioner business increased by61% and revenue from kitchen products increased by76%.
2. From January to September 2017, revenue from the original business of the Company (excluding GEA) increased by22%, and net profit attributable to the Parent Company with non-recurring gain and loss deducted increased by22%. 3. The domestic market focuses on retail transformation, efficiency optimization and structure upgrading. Revenue from domestic white appliances increased by26% from January to September 2017; high-end brand Casarte continues to grow rapidly with an increase of41% in the first three quarters, maintaining the absolute leading position in the high-end market.
4. The overseas market carries forward multi-brand and“R&D, manufacturing and marketing” integrated layout, realizing comprehensive development. From January to September 2017, the overall overseas revenue amounted to RMB50.74 billion, representing43% of the total revenue, and approximately100% of the revenue from self-owned brand:①From January to September 2017,GEA’s contribution to revenue amounted to RMB34.2 billion, contribution to the net profit attributable to the Parent Company amounted to RMB1.88 billion and contribution to net profits attributable to shareholders of listed companies with non-recurring gain and loss deducted amounted to RMB1.02 billion. Among which the third quarter alone recorded revenue of RMB11.7 billion, representing an increase of7.7% compared with the corresponding period of last year.②Revenue from original overseas business (excluding GEA) increased by20%, among which revenue from the South-Asian market increased by49%, revenue from the European market increased by29%, revenue from the Middle-Eastern and African market increased by29% and revenue from the Australian market increased by19%.
5.U+ SmartLife platform focuses on intellectualization and user experience upgrading, accelerating the pace of product intellectualization, and continuing the iteration of theU+ Home OS system. The sale of white internet appliances (smart appliances) for the first three quarters amounted to 8.4 million units, representing an increase of222%.U+ platform users amounted to 50 million, representing an increase of102%, compared with the corresponding period of last year.
6. Carrying forward the construction of COSMOPlat Industrial Internet Platform and promoting the transformation of digital enterprises, mass customization of appliances amounted to 7.14 million units, representing an increase of870%.
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
7. The community economic ecological platform of “Shunguang micro-store, online store, offline store”, achieved 0.61 million Shunguang micro-store owners, 16,000 OTO stores and 20,000 communities on the Platform, with GMV (Gross Merchandise Volume) amounting to over RMB3 billion from January to September 2017.
Non-recurring Profit or Loss Items and Amount
√Applicable□ Not Applicable
Unit and Currency: RMB
|||||||
|-|-|-|-|-|-|
||||||Amount from the|
||||Amount of current||beginning of the|
||Items||period||year to the end of the|
||||(July-September)||reporting period|
||||||(January-September)|
|Losses and profits from disposal of non-current assets||3,444,050.08||24,463,313.86||
|Government grants included in current profit or loss,except that closely related to the normal operatingbusiness, complied with requirements of the nationalpolicies, continued to be granted with the amount andquantity determined under certain standards||108,768,137.25||226,840,920.22||
|Current net profit or loss of the subsidiaries from theconsolidation of enterprises under common control fromthe beginning of the period to the date of the mergers||500,041.82||500,041.82||
|In addition to the effective hedging business related to thenormal operations of the Company, profit or loss ofchanges in fair value arising from holding of tradingfinancial assets and trading financial liabilities, as well asinvestment gain realized from disposal of trading financialassets, trading financial liabilities and financial assetsavailable for sale||153,656,077.48||579,570,227.47||
|Other non-operating income and expenses except theaforementioned items||223,550,616.45||386,393,769.38||
|Minority interests (after tax)||-29,605,242.68||-100,022,424.36||
|Income tax effect||-123,017,318.39||-130,720,536.82||
|Total||337,296,362.01||987,025,311.57||

 2.2 Total number of shareholders, top 10 shareholders and top 10 shareholders holding circulating shares (or shareholders not subject to trading restrictions) as of the end of the reporting period Unit: Share
|||
|-|-|
|Total number of shareholders|138,077|
|Shareholdings of top ten shareholders||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Number of|||Status of|||||
|||||||shares|||shares|||||
||||Number of||||||||||Nature|
|||||||held|||pledged|||||
||Name of||shares held||Percenta||||||||of|
|||||||subject|||or frozen|||||
||Shareholder (full name)||at the end of||ge (%)||||||||shareholde|
|||||||to selling||||Nu||||
||||the period||||||||||r|
|||||||restriction|||Status|mb||||
|||||||s||||er||||
|Haier Electric AppliancesInternational Co., Ltd.||1,258,684,824||20.64||||Nil||||Domesticnon-state-ownedlegalentity||
|Haier Group Corporation||1,072,610,764||17.59||||Nil||||Domesticnon-state-ownedlegalentity||
|KKR HOMEINVESTMENT S.A R.L.||605,985,988||9.94||||Nil||||Foreignlegalentity||
|Hong Kong SecuritiesClearing Co., Ltd.||460,096,580||7.55||||Unknown||||Unknown||
|China Securities FinanceCorporation Limited||229,914,866||3.77||||Unknown||||Unknown||
|Qingdao Haier Venture &Investment InformationCo., Ltd.(青岛海尔创业投资咨询有限公司）||172,252,560||2.83||||Nil||||Domesticnon-state-ownedlegalentity||
|National social securityfund, Portfolio 104||106,888,894||1.75||||Unknown||||Unknown||
|GIC PRIVATE LIMITED||77,187,435||1.27||||Unknown||||Unknown||
|Central Huijin AssetManagement Ltd.||69,539,900||1.14||||Unknown||||Unknown||
|National social securityfund, Portfolio 103||40,027,881||0.66||||Unknown||||Unknown||
||Shareholdings of top ten shareholders not subject to selling restrictions|||||||||||||
||||||Number of||Class and number of shares|||||||
||||||shares held|||||||||
||Name of shareholder||||subject|||||||||
||||||||Class||||Number|||
||||||to no selling|||||||||
||||||restrictions|||||||||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||
|-|-|-|-|-|
|Haier Electric Appliances International Co.,Ltd.||1,258,684,824|RMB ordinary|1,258,684,824|
|Haier Group Corporation||1,072,610,764|RMB ordinary|1,072,610,764|
|KKR HOME INVESTMENT S.A R.L.||605,985,988|RMB ordinary|605,985,988|
|Hong Kong Securities Clearing Co., Ltd.||460,096,580|RMB ordinary|460,096,580|
|China Securities Finance CorporationLimited||229,914,866|RMB ordinary|229,914,866|
|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, Portfolio 104||106,888,894|RMB ordinary|106,888,894|
|GIC PRIVATE LIMITED||77,187,435|RMB ordinary|77,187,435|
|Central Huijin Asset Management Ltd.||69,539,900|RMB ordinary|69,539,900|
|National social security fund, Portfolio 103||40,027,881|RMB ordinary|40,027,881|
|||(1) Haier Electric Appliances International Co., Ltd. is aholding subsidiary of Haier Group Corporation. HaierGroup Corporation holds 51.20% of its equity. QingdaoHaier Venture & Investment Information Co., Ltd.(青岛海尔创业投资咨询有限公司) is a party acting inconcert with Haier Group Corporation;(2) The Company is not aware of the existence of anyconnections of other shareholders.|||
||Related-parties or parties acting in concert||||
||among the aforesaid shareholders||||
||Description of preferential shareholders with|N/A|||
||restoration of voting rights and their||||
||shareholdings||||

2.3 Total number of preferential shareholders, top ten preferential shareholders and top ten holders of preference shares not subject to trading moratorium as of the end of the reporting period
□Applicable√ Not Applicable
III. Important Events
3.1 The major changes and reasons for the items of accounting statement and financial indicators√Applicable□Not Applicable
1) Monetary capital increased by36.38% as compared with the beginning of the period, which was mainly due to the fact that the net cash flows from operating activities in the period has increased;
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
2) Financial assets measured at fair value and its changes of which included in current profit or loss decreased by71.28% as compared with the beginning of the period, which was mainly attributable to the influence of change in fair value of derivative financial instruments such as forward contracts; 3) Interests receivable increased by46.17% as compared with the beginning of the period, which was mainly due to the fact that the interests of the financial products which have not yet been received recognized at the end of the period have increased;
4) Dividends receivable decreased by95.55% as compared with the beginning of the period, which was mainly attributable to the dividend which had been declared but not yet received from the joint stock companies;
5) Other current assets increased by31.42% as compared with the beginning of the period, which was mainly attributable to the addition of financial products for the period;
6) Long-term prepaid expenses decreased by30.40% as compared with the beginning of the period, which was mainly attributable to the amortization of the current expenses;
7) Short-term borrowings decreased by31.63% as compared with the beginning of the period, which was mainly attributable to the adjustment from part of short-term borrowings to long-term borrowings due to the fact that the Company had adjusted the borrowing structure;
8) Financial liabilities measured at fair value and changes of which included in current profit and loss decreased by52.42% as compared with the beginning of the period, which was mainly attributable to the change in fair value of derivative financial instruments such as forward contract for the period; 9) Interests payable increased by551.93% as compared with the beginning of the period, which was mainly attributable to the increase of interests which has been accrued but not yet paid;
10) Non-current liabilities due within one year decreased by44.07% as compared with the beginning of the period, which was mainly due to the conversion of convertible bonds issued in previous years into shares in the period by subsidiaries of the Company;
11) Estimated liabilities increased by39.91% as compared with the beginning of the period, which was mainly due to the fact that contingent liabilities recognized as the investments with buy-back conditions which were absorbed by subsidiaries of the Company;
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
12) Other non-current liabilities decreased by72.58% as compared with the beginning of the period, which was mainly attributable to the change in fair value of forward contract due over one year which was held by the Company in the period;
13) Treasury stock decreased by100% as compared with the beginning of the year, which was mainly attributable to the cancellation of the treasury stock in the period;
14) Other comprehensive income decreased by52.69% as compared with the beginning of the period, which was mainly attributable to the decrease of the share of other comprehensive income which will be reclassified in profit and loss in the future;
15) Operating revenue increased by41.27% as compared with the corresponding period of last year, which was mainly attributable to the growth of the original business of the Company and the contribution of GEA;
16) Operating expense increased by39.61% as compared with the corresponding period of last year, which was mainly attributable to the increase of expenses resulting from the growth of sales; 17) Taxes and surtaxes increased by112.87% as compared with the corresponding period of last year, which was mainly attributable to the consolidation of all relevant taxes during the course of operating activities into the accounting item of taxes and surcharge since 1 May 2016 according to the CAIKUAI No.[2016]22 Value Added Tax Accounting Treatment Regulations issued by the MOF; 18) Selling expenses increased by57.31% as compared with the corresponding period of last year, which was mainly attributable to the inclusion of selling expenses of GEA (the corresponding period only included the selling expenses of GEA during the period from 6 June to 30 September 2016);
19) Financial expenses increased by266.86% as compared with the corresponding period of last year, which was mainly attributable to the increase of average balance of borrowings for the period as compared with the corresponding period of last year;
20) Loss in assets impairment increased by37.01% as compared with the corresponding period of last year, which was mainly attributable to the increase of closing balance of account receivables;
21) Income from change in fair value increased by608.13% as compared with the corresponding period of last year, which was mainly attributable to the change in fair value of derivative financial instruments such as forward contracts for the period;
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
22) Other income increased by100% as compared with the corresponding period of last year, which was mainly attributable to the implementation of the Accounting Standards for Business Enterprises No. 16 - Government grants (2017 Revision) at the time as requested by the MOF during the period;
23) Non-operating expenses decreased by57.48% as compared with the corresponding period of last year, which was mainly attributable to the higher one off expense which was incurred from the acquisition of GEA in the corresponding period of last year and there was no such factor in the current period;
24) Net cash flows from operating activities increased by186.30% as compared with the corresponding period of last year, which was mainly due to the increase of revenue for the period and the strengthening of management of supply chain;
25) Net cash flows from investing activities increased by87.64% as compared with the corresponding period of last year, which was mainly attributable to the higher payment for the acquisition of GEA in the corresponding period of last year;
26) Net cash flows from financing activities decreased by103.06% as compared with the corresponding period of last year, which was mainly attributable to the substantial debt financing used for the acquisition of GEA in the corresponding period of last year.
3.2 Note and analysis on the progress of significant events and their impact and solution
√ Applicable□Not Applicable
(1) As of the end of the reporting period, the external guarantees of the Company and its subsidiaries are all guarantees among the Company and its subsidiaries, and the balance of the external guarantees amounted to RMB23.757 billion, representing78.7% of the net assets of the Company for the latest period, and16.4% of the total assets for the latest period.
(2) As of the end of the reporting period, the balance of theCompany’s exchange transactions of derivative products amounted to approximatelyUS$2.9 billion.
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
3.3 The undertakings that have been past due and not been completed during the reporting period.
□Applicable√Not applicable
During the reporting period, the Company has no undertakings that have past due but not performed.
The undertakings made by the actual controlling shareholders, shareholders, related parties, purchasers and the Company and others during or up to the reporting period are as follows:
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Whether|
||||||||||||||it is|
||||||||||||Whether it|||
||||||||||||||performed|
||||||||||Time and||has a|||
||Background||Type||Covenanter||Content||||||in a|
||||||||||term||deadline for|||
||||||||||||||timely|
||||||||||||performance|||
||||||||||||||and strict|
||||||||||||||way|
|Undertaking related tosignificant assetsreorganization||Eliminate theproperty rightdefects inland and etc.||HaierGroupCorporation||During the period from September 2006 to May 2007, theCompany issued shares to Haier Group Corporation (“HaierGroup”) to purchase the controlling equity in its four subsidiaries,namely Qingdao Haier Air-Conditioner Electronics Co., Ltd. (青岛海尔空调电子有限公司), Hefei Haier Air-conditioning Co.,Limited (合肥海尔空调器有限公司), Wuhan Haier ElectronicsCo., Ltd. (武汉海尔电器股份有限公司), Guizhou HaierElectronics Co., Ltd. (贵州海尔电器有限公司). With regard tothe land and property required in the operation of Qingdao HaierAir-Conditioner Electronics Co., Ltd. (青岛海尔空调电子有限公司) , Hefei Haier Air-conditioning Co., Limited (合肥海尔空调器有限公司), Wuhan Haier Electronics Co., Ltd. (武汉海尔电器股份有限公司) (the “Covenantees”), Haier Group made an||27September2006,longterm||YES||YES||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||||undertaking (the “2006 Undertaking”). According to the content of2006 Undertaking and current condition of each Covenantee,Haier Group will constantly assure that Covenantees will lease theland and property owned by Haier Group for free. Haier Groupwill make compensation in the event that the Covenantees sufferloss due to the unavailability of such land and property.||||
|Undertaking related torefinancing|Eliminate theproperty rightdefects inland and etc.|HaierGroupCorporation|Haier Group Corporation undertakes that it will assure QingdaoHaier and its subsidiaries of the constant, stable and unobstructeduse of the leased property. In the event that Qingdao Haier or anyof its subsidiaries suffers any economic loss due to the fact thatleased property has no relevant ownership certificate, Haier GroupCorporation will make compensation to impaired party in a timelyand sufficient way and take all reasonable and practicablemeasures to support the impaired party to recover to normaloperation before the occurrence of loss. Upon the expiration ofrelevant leasing period, Haier Group Corporation will grant or takepracticable measures to assure Qingdao Haier and its subsidiariesof priority to continue to lease the property at a price not higherthan the rent in comparable market at that time. Haier GroupCorporation will assure Qingdao Haier and its subsidiaries of theconstant, stable, free and unobstructed use of self-built propertyand land of the Group. In the event that Qingdao Haier or any ofits subsidiaries fails to continue to use self-built propertyaccording to its own will or in original way due to the fact thatself-built property has no relevant ownership certificate, HaierGroup Corporation will take all reasonable and practicablemeasures to eliminate obstruction and impact, or will support|24December2013, longterm|YES|YES|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
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|-|-|-|-|-|-|-|
||||Qingdao Haier or its affected subsidiary to obtain alternativeproperty as soon as possible, if Haier Group Corporationanticipates it is unable to cope with or eliminate the externalobstruction and impact with its reasonable effort. For details,please refer to the Announcement of Qingdao Haier Co., Ltd. onthe Formation, Current Situation of the Defective Property, theInfluence on Operation of Issuer Caused by Uncertainty ofOwnership, Solution for the Defect and Guarantee Measures (L2014-005) published by the Company on the four major securitiesnewspapers and the website of Shanghai Stock Exchange on 29March 2014.||||
||Eliminate theproperty rightdefects inland and etc.|QingdaoHaier Co.,Ltd.|The Company undertakes that it will eliminate the property defectsof the Company and main subsidiaries within five years withreasonable business effort since 24 December 2013, so as toachieve the legality and compliance of the Company and mainsubsidiaries in terms of land and property. For details, please referto the Announcement of Qingdao Haier Co., Ltd. on theFormation, Current Situation of the Defective Property, theInfluence on Operation of Issuer Caused by Uncertainty ofOwnership, Solution for the Defect and Guarantee Measures (L2014-005) published by the Company on the four major securitiesnewspapers and the website of Shanghai Stock Exchange on 29March 2014.|24December2013, fiveyears|YES|YES|
|Undertaking related tothe share optionincentive|Other|QingdaoHaier Co.,Ltd.|With regard to its Share Option Incentive Scheme, the Companyhas undertaken not to provide loan or any other kind of financialsupport to incentive object in exercising option under the ShareOption Incentive Scheme or purchase of restricted shares,|11 April2014, longterm|YES|YES|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||||
|-|-|-|-|-|-|-|
||||including providing guarantee for its loan.||||
|Other undertakingsmade to the mediumand minorityshareholders|Assetinjection|HaierGroupCorporation|Inject the assets of Fisher&Paykel to the Company or dispose suchassets through other ways according to the requirements of thedomestic supervision before June 2020. For more details, pleaserefer to the Announcement of Qingdao Haier Co., Ltd. on theChanges of Funding Commitment of Haier Group Corporation (L2015-015) published on the four major securities newspapers andthe website of Shanghai Stock Exchange on 26 May 2015.|May2015-June2020|YES|YES|
||Assetinjection|HaierGroupCorporation|Inject the assets of Haier Photoelectric to the Company or disposesuch assets through other ways according to the requirements ofthe domestic supervision before June 2020. For more details,please refer to the Announcement of Qingdao Haier Co., Ltd. onthe Changes of Funding Commitment of Haier Group Corporation(L 2015-063) published on the four major securities newspapersand the website of Shanghai Stock Exchange on 23 December2015.|December2015-June2020|YES|YES|
||Profitforecast andcompensation|HaierGroupCorporation|In December 2015 and January 2016, the meeting of the Board ofDirectors and general meeting of the shareholders considered andapproved the matters in relation to the acquisition of minorityequity interest of Mitsubishi Heavy Industries Haier and CarrierRefrigeration Equipment held by Haier Group. The Companysigned the Profit Compensation Agreement with Haier Group toforecast the profits achieved by the aforementioned two companiesin 2015 - 2018. If the profits are not reached during thecommitment period, the difference part will be made up to theCompany by Haier Group in cash. For more details, please refer tothe Announcement of Qingdao Haier Co., Ltd. on the Acquisition|December2015-December2018|YES|YES|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||
|-|
|of Equity in Sino-foreign Joint Venture Held by Haier GroupCorporation and Related-party Transaction (L 2015-062)published on the four major securities newspapers and the websiteof Shanghai Stock Exchange on 23 December 2015.|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
3.4 Warning and explanation on reasons for accumulated net profit for the period from the beginning of the year to the end of the next reporting period to be at a loss or expected to have material
change as compared to those of the same period of last year
 Applicable√Not Applicable
|||
|-|-|
|Name ofcompany|Qingdao Haier Co., Ltd.|
|Legalrepresentatives|Liang Haishan|
|Date|30 October 2017|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
IV. Appendix
4.1 Financial Statements
Consolidated Balance Sheet
30 September 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
|||||||
|-|-|-|-|-|-|
||Items||Closing balance||Opening balance|
|Current Assets:||||||
|Monetary Capital||32,161,405,575.63||23,582,239,011.20||
|Clearing settlement funds||||||
|Placements with banks||||||
|Financial assets measured at fair valueand changes of which included in currentprofit and loss||23,099,285.52||80,432,384.17||
|Derivative financial assets||||||
|Bills receivables||13,613,608,437.38||13,796,561,238.05||
|Accounts receivables||14,080,769,417.93||12,265,195,443.40||
|Prepayments||636,516,972.75||592,510,116.61||
|Premiums receivable||||||
|Reinsurance accounts receivables||||||
|Reinsurance contract reserves receivable||||||
|Interests receivables||197,782,711.00||135,319,774.41||
|Dividends receivables||4,524,472.84||101,648,913.10||
|Other receivables||1,162,772,967.81||1,180,418,052.75||
|Financial assets purchased under resaleagreements||||||
|Inventories||16,662,708,886.43||15,284,904,331.04||
|Assets classified as held for sale||||||
|Non-current assets due within oneyear||||||
|Other current assets||3,492,482,010.38||2,657,462,188.89||
|Total current assets||82,035,670,737.67||69,676,691,453.62||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Non-current assets:|||
|Loans and advances granted|||
|Available-for-sale financial assets|1,529,297,430.03|1,555,878,717.05|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|12,199,579,035.51|11,057,819,628.14|
|Investment properties|31,829,109.66|34,600,393.37|
|Fixed assets|15,467,940,420.30|15,592,013,177.13|
|Construction in progress|1,938,163,487.98|1,769,875,050.35|
|Construction materials|||
|Disposals of fixed assets|55,839,366.07|55,808,808.81|
|Biological assets for production|||
|Fuel assets|||
|Intangible assets|7,005,667,558.19|7,242,818,792.38|
|Development expenses|964,265,409.64|913,283,796.32|
|Goodwill|20,118,185,407.90|21,004,123,145.39|
|Long-term amortization expenditures|80,576,820.58|115,773,592.78|
|Deferred income tax assets|1,929,302,431.06|1,592,009,404.59|
|Other non-current assets|1,092,341,805.99|858,461,388.86|
|Total non-current assets|62,412,988,282.91|61,792,465,895.17|
|Total assets|144,448,659,020.58|131,469,157,348.79|
|Current liabilities:|||
|Short-term borrowings|12,418,891,006.63|18,165,531,879.15|
|Borrowings from central bank|||
|Absorbing deposit and deposit ininter-bank market|||
|Placements from banks|||
|Financial liabilities measured at fair valueand changes of which included in currentprofit and loss|1,113,469.99|2,340,213.20|
|Derivative financial liabilities|||
|Bills payable|16,103,545,239.34|12,404,889,760.05|
|Accounts payables|24,883,347,557.94|20,601,681,120.03|
|Payments received in advance|5,699,883,655.56|5,737,348,712.97|
|Disposal of repurchased financialassets|||
|Handling charges and commissionspayable|||
|Staff remuneration payable|2,034,170,759.85|2,408,525,656.48|
|Taxes payable|1,821,564,136.55|1,620,588,401.27|
|Interests payable|199,296,599.98|30,570,328.66|
|Dividends payable|171,494,413.64|148,690,489.01|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Other payables|11,188,265,516.60|9,459,636,746.05|
|Reinsurance accounts payable|||
|Deposits for insurance contracts|||
|Customer deposits for trading insecurities|||
|Amounts due to issuer for securitiesunderwriting|||
|Liabilities classified as held for sale|||
|Non-current liabilities due within oneyear|1,659,225,902.64|2,966,808,509.55|
|Other current liabilities|12,730,995.55|17,228,645.29|
|Total current liabilities|76,193,529,254.27|73,563,840,461.71|
|Non-current liabilities:|||
|Long-term borrowings|19,300,470,189.58|15,530,801,311.80|
|Debentures payable|||
|Including: preference Shares|||
|Perpetual bonds|||
|Long-term payable|113,567,759.83|115,783,382.28|
|Long-term payables for staff’sremuneration|892,334,688.34|1,209,218,564.79|
|Special payable|||
|Estimated liabilities|3,232,008,708.04|2,310,119,430.60|
|Deferred income|394,639,154.50|342,825,593.35|
|Deferred income tax liabilities|158,956,064.31|133,243,146.68|
|Other non-current liabilities|159,823,992.08|582,785,069.86|
|Total non-current liabilities|24,251,800,556.68|20,224,776,499.36|
|Total liabilities|100,445,329,810.95|93,788,616,961.07|
|Owners’ equity|||
|Share capital|6,097,402,727.00|6,097,630,727.00|
|Other equity instruments|||
|Including: preference shares|||
|Perpetual bonds|||
|Capital reserve|83,462,866.62|106,798,262.17|
|Less: Treasury stock||1,041,960.00|
|Other comprehensive income|268,226,696.49|566,987,435.57|
|Special reserve|||
|Surplus reserve|2,065,911,217.00|2,074,118,571.01|
|General risk provisions|||
|Undistributed profits|21,690,034,846.09|17,593,695,190.81|
|Total equity attributable to owners of theparent company|30,205,038,353.20|26,438,188,226.56|
|Minority interests|13,798,290,856.43|11,242,352,161.16|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Total owners’ equity|44,003,329,209.63|37,680,540,387.72|
|Total liabilities and owners’ equities|144,448,659,020.58|131,469,157,348.79|

 Legal representative: Liang Haishan Chief accountant: Gong Wei Person in charge of accounting department: Ying Ke(应珂)
Balance Sheet of the Parent Company
30 September 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
|||||||
|-|-|-|-|-|-|
||Items||Closing balance||Opening balance|
|Current Assets:||||||
|Monetary Capital||4,563,406,578.43||3,888,623,400.28||
|Financial assets measured at fair valueand changes of which included in currentprofit and loss||||||
|Derivative financial assets||||||
|Bills receivables||||||
|Accounts receivables||211,862,728.36||265,438,220.39||
|Prepayments||40,174,115.51||10,000,000.00||
|Interests receivables||186,711,026.24||85,452,583.16||
|Dividends receivables||200,000.00||329,713,897.32||
|Other receivables||38,971,830.93||322,953,279.90||
|Inventories||38,472,023.53||69,799,065.47||
|Assets classified as held for sale||||||
|Non-current assets due within oneyear||||||
|Other current assets||165,012,831.51||94,935,174.83||
|Total current assets||5,244,811,134.51||5,066,915,621.35||
|Non-current assets:||||||
|Available-for-sale financial assets||5,978,414.52||5,478,235.84||
|Held-to-maturity investments||||||
|Long-term receivables||8,600,000,000.00||8,600,000,000.00||
|Long-term equity investments||23,068,844,965.51||22,342,078,877.07||
|Investment properties||||||
|Fixed assets||122,757,304.80||116,840,195.32||
|Construction in progress||16,806,600.17||22,611,979.50||
|Construction materials||||||
|Disposals of fixed assets||||||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Biological assets for production|||
|Fuel assets|||
|Intangible assets|7,953,498.86|8,578,922.84|
|Development expenses|||
|Goodwill|||
|Long-term amortization expenditures|||
|Deferred income tax assets|62,346,256.82|62,346,256.82|
|Other non-current assets|||
|Total non-current assets|31,884,687,040.68|31,157,934,467.39|
|Total assets|37,129,498,175.19|36,224,850,088.74|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities measured at fair valueand changes of which included in currentprofit and loss|||
|Derivative financial liabilities|||
|Bills payable|||
|Accounts payables|302,548,109.26|1,142,008,704.07|
|Payments received in advance|633,678,127.81|1,844,082,827.50|
|Staff remuneration payable|33,607,763.18|39,919,748.55|
|Taxes payable|12,712,709.52|57,218,867.86|
|Interests payable|93,254,821.05|117,705,327.18|
|Dividends payable|||
|Other payables|25,394,674,517.86|21,170,550,089.69|
|Liabilities classified as held for sale|||
|Non-current liabilities due within oneyear|||
|Other current liabilities|10,402,345.83|4,841,867.91|
|Total current liabilities|26,480,878,394.51|24,376,327,432.76|
|Non-current liabilities:|||
|Long-term borrowings|||
|Debentures payable|||
|Including: preference shares|||
|Perpetual bonds|||
|Long-term payable|20,000,000.00|20,000,000.00|
|Long-term payables for staff’sremuneration|||
|Special payable|||
|Estimated liabilities|||
|Deferred income|27,700,000.00|17,700,000.00|
|Deferred income tax liabilities|15,644,327.91|15,569,301.11|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Other non-current liabilities|||
|Total non-current liabilities|63,344,327.91|53,269,301.11|
|Total liabilities|26,544,222,722.42|24,429,596,733.87|
|Owners’ equity：|||
|Share capital|6,097,402,727.00|6,097,630,727.00|
|Other equity instruments|||
|Including: preference shares|||
|Perpetual bonds|||
|Capital reserve|2,060,812,960.17|2,061,597,739.78|
|Less: Treasury stock||1,041,960.00|
|Other comprehensive income|-24,405,467.75|-10,881,603.15|
|Special reserve|||
|Surplus reserve|1,389,846,284.51|1,389,846,284.51|
|Undistributed profits|1,061,618,948.84|2,258,102,166.73|
|Total owners’ equity|10,585,275,452.77|11,795,253,354.87|
|Total liabilities and owners’ equities|37,129,498,175.19|36,224,850,088.74|

 Legal representative: Liang Haishan Chief accountant: Gong Wei Person in charge of accounting department: Ying Ke(应珂)
Consolidated Income Statement
January-September 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Amount as at the||Amount as at the|
||||||||beginning of the||beginning of last|
||||||||year to the end of||year to the end of|
||||Current amount||Prior amount||the reporting||the reporting|
||Items|||||||||
||||(July-September)||(July-September)||period||period|
||||||||(January-Septemb||(January-Septem|
||||||||er)||ber)|
|I. Total operatingrevenue||41,613,863,654.10||35,580,735,659.68||119,189,613,634.20||84,367,342,584.55||
|Including: operatingrevenue||41,613,863,654.10||35,580,735,659.68||119,189,613,634.20||84,367,342,584.55||
|Interest income||||||||||
|Insurancepremiums earned||||||||||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||
|-|-|-|-|-|
|Fee and commissionincome|||||
|II. Total cost ofoperations|40,468,513,665.59|34,713,999,575.68|113,364,284,425.92|80,118,843,110.38|
|Including: operatingcost|29,397,273,551.20|25,171,204,780.30|83,552,179,384.59|59,846,936,854.72|
|Interest expenses|||||
|Fee and commissionexpenses|||||
|Insurance withdrawalpayment|||||
|Net payment fromindemnity|||||
|Net provisions forinsurance contract|||||
|Insurance policydividend paid|||||
|Reinsurance cost|||||
|Business taxes andsurcharge|269,212,903.89|117,023,348.43|614,599,237.19|288,720,266.70|
|Selling expenses|8,086,931,744.23|6,671,957,919.30|21,024,447,698.61|13,365,034,255.10|
|Administrativeexpenses|2,324,987,511.75|2,634,371,111.57|6,948,695,908.26|6,177,453,643.25|
|Financial expenses|378,794,177.81|144,920,254.93|990,471,459.74|269,989,263.40|
|Loss in assetsimpairment|11,313,776.71|-25,477,838.85|233,890,737.53|170,708,827.21|
|Add: income fromchange in fair value(losses arerepresented by “-”)|114,188,419.25|78,690,919.90|526,252,264.40|-103,567,238.94|
|Investmentincome (losses arerepresented by “-”)|318,580,844.17|308,359,351.21|972,423,558.52|1,337,553,151.05|
|Including: investmentincome of associatesand joint ventures|||||
|Exchange gain (lossesare represented by“-”)|||||
|Other incomes|191,577,886.70||264,319,732.74||
|III. Operating profit(losses arerepresented by “-”)|1,769,697,138.63|1,253,786,355.11|7,588,324,763.94|5,482,485,386.28|

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||
|-|-|-|-|-|
|Add: non-operatingincome|314,205,463.92|129,603,563.04|623,209,532.54|589,928,436.18|
|Including: gain fromdisposal ofnon-current assets|||||
|Less:non-operatingexpenses|39,369,015.51|234,988,996.29|123,948,038.66|291,472,316.41|
|Including: Loss fromdisposal ofnon-current assets|||||
|IV. Total profit (totallosses are representedby “-”)|2,044,533,587.04|1,148,400,921.86|8,087,586,257.82|5,780,941,506.05|
|Less: income taxexpense|218,094,249.60|202,370,445.05|976,116,407.83|863,068,827.03|
|V. Net profit (netlosses are representedby “-”)|1,826,439,337.44|946,030,476.81|7,111,469,849.99|4,917,872,679.02|
|Net profitattributable to ownersof the Company|1,255,293,313.13|511,810,975.12|5,682,361,717.64|3,826,984,146.82|
|Profit or lossattributable tominority shareholders|571,146,024.31|434,219,501.69|1,429,108,132.35|1,090,888,532.20|
|VI. Othercomprehensiveincome, net of tax|-144,121,187.22|318,820,472.39|-345,254,600.46|-57,829,623.37|
|Othercomprehensiveincome attributable toowners of theCompany, net of tax|-130,145,366.38|316,020,122.26|-298,760,739.08|-70,651,292.41|
|(I) Othercomprehensiveincome that will notbe reclassifiedsubsequently to profitor loss|||||
|1. Changes in netliabilities or net assetsarising fromre-measurement of|||||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||
|-|-|-|-|-|
|defined benefit plans|||||
|2. Share of othercomprehensiveincome of investeesthat cannot bereclassified to profitor loss under equitymethod|||||
|(II) Othercomprehensiveincome to bereclassifiedsubsequently to profitor loss|-130,145,366.38|316,020,122.26|-298,760,739.08|-70,651,292.41|
|1. Share of othercomprehensiveincome of investeesthat will bereclassifiedsubsequently to profitor loss under equitymethod|40,693,511.60|10,147,015.47|-81,346,664.65|-34,869,817.75|
|2. Gain or loss fromchange in fair valueof available-for-salefinancial assets|2,843,778.27|-1,569,310.30|496,754.29|-449,875,102.32|
|3. Gain or loss arisingfrom reclassificationfrom held-to-maturityinvestments toavailable-for-salefinancial assets|||||
|4. Effective portion ofgain or loss arisingfrom cash flowhedging instruments|4,628,209.01||-1,139,401.61||
|5. Exchangedifferences ontranslation offinancial statementsdenominated inforeign currencies|-178,310,865.26|307,442,417.09|-216,771,427.11|414,093,627.66|
|6. Other|||||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||
|-|-|-|-|-|
|Othercomprehensiveincome attributable tominorityshareholders, net oftax|-13,975,820.84|2,800,350.13|-46,493,861.38|12,821,669.04|
|VII. Totalcomprehensiveincome|1,682,318,150.22|1,264,850,949.20|6,766,215,249.53|4,860,043,055.65|
|Totalcomprehensiveincome attributable tothe shareholders ofparent company|1,125,147,946.75|827,831,097.38|5,383,600,978.56|3,756,332,854.41|
|Totalcomprehensiveincome attributable tothe minorityshareholders|557,170,203.47|437,019,851.82|1,382,614,270.97|1,103,710,201.24|
|VIII . Earnings pershare:|||||
|(I) Basic earningsper share(RMB/share)|0.206|0.084|0.932|0.627|
|(II) Dilutedearnings per share(RMB/share)|0.206|0.084|0.932|0.627|

The net profit realized by the acquiree prior to its merger with the Company, which turned the acquiree into a jointly controlled entity of the Company, was RMB 500,041.82 during the period.
Legal representative: Liang Haishan Chief accountant: Gong Wei Person in charge of accounting department: Ying Ke(应珂)
Income Statement of the Parent Company
January-September 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Amount as at||Amount as at|
||||||||the beginning of||the beginning of|
||||||||the year to the||last|
||||Current|||||||
||||||Prior amount||end of||year to the end|
||||amount|||||||
||Items||||(July-Septemb||the reporting||of the|
||||(July-Septemb|||||||
||||||er)||period||reporting|
||||er)|||||||
||||||||(January-Septe||period|
||||||||mber)||(January-Septe|
||||||||||mber)|
|I. Operating revenue||885,928,248.69||827,929,968.02||2,429,040,574.34||2,343,801,453.23||
|Less: Operation cost||599,578,352.66||599,133,201.64||1,724,678,093.73||1,663,108,069.07||
|Taxes and surcharge||8,873,954.31||2,251,251.96||17,998,106.78||8,696,651.40||
|Selling expenses||65,814,107.53||30,872,977.31||150,349,127.54||172,551,891.19||
|Administrative expenses||205,554,320.29||202,054,309.20||497,356,040.18||424,068,353.18||
|Financial expenses||32,401,366.94||13,315,728.36||77,833,579.73||13,236,150.33||
|Loss in assets impairment||-67,084,496.59||-1,722,245.56||-17,843,951.04||-3,616,902.23||
|Add: income from change in fairvalue (losses are represented by“-”)||||||||||
|Investment income (lossesare represented by “-”)||108,081,882.92||56,992,467.02||259,975,650.65||200,457,104.98||
|Including: investmentincome of associates and jointventures||||||||||
|Other incomes||17,166,899.75||||17,166,899.75||||
|II. Operating profit (losses arerepresented by “-”)||166,039,426.22||39,017,212.13||255,812,127.82||266,214,345.27||
|Add: non-operating income||7,140,206.67||5,619,768.40||59,966,161.35||81,560,399.04||
|Including: gain fromdisposal of non-current assets||||||||||
|Less: non-operating expenses||852,535.19||891,618.63||861,948.86||911,949.33||
|Including: Loss fromdisposal of non-current assets||||||||||
|III. Total Profit (losses arerepresented by “-”)||172,327,097.70||43,745,361.90||314,916,340.31||346,862,794.98||
|Less: income tax expense||9,633,872.86||-1,987,065.76||-756,318.10||5,807,852.78||
|IV. Net Profit (net losses arerepresented by “-”)||162,693,224.84||45,732,427.66||315,672,658.41||341,054,942.20||
|V. Other comprehensive income,net of tax||79,633.31||6,110,062.02||-13,523,864.60||-14,597,453.12||
|(I) Other comprehensive incomewill not be reclassifiedsubsequently to profit or loss||||||||||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||||
|-|-|-|-|-|
|1. Changes in net liabilities ornet assets arising fromre-measurement of defined benefitplans|||||
|2. Share of othercomprehensive income of investeesthat cannot be reclassified to profitor loss under equity method|||||
|(II) Other comprehensiveincome to be reclassifiedsubsequently to profit or loss|79,633.31|6,110,062.02|-13,523,864.60|-14,597,453.12|
|1. Share of othercomprehensive income of investeesthat will be reclassifiedsubsequently to profit or loss underequity method|14,374,168.36|6,169,709.37|425,151.88|915,175.04|
|2. Gain or loss from change infair value of available-for-salefinancial assets|-14,294,535.05|-59,647.35|-13,949,016.48|-15,512,628.16|
|3. Gain or loss arising fromreclassification fromheld-to-maturity investments toavailable-for-sale financial assets|||||
|4. Effective portion of gain orloss arising from cash flow hedginginstruments|||||
|5. Exchange differences ontranslation of financial statementsdenominated in foreign currencies|||||
|6. Other|||||
|VI. Total comprehensive income|162,772,858.15|51,842,489.68|302,148,793.81|326,457,489.08|
|VII. Earnings per share:|||||
|(I) Basic earnings per share(RMB/ share)|||||
|(II) Diluted earnings per share(RMB/share)|||||

Legal representative: Liang Haishan Chief accountant: Gong Wei Person in charge of accounting department: Ying Ke(应珂)
Consolidated Cash Flow Statement
January-September 2017
Prepared by: Qingdao Haier Co., Ltd.
Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
|||||||
|-|-|-|-|-|-|
||||Amount as at the||Amount as at the|
||||beginning of||beginning of last|
||Items||the year to the end of||year to the end of the|
||||the reporting period||reporting period|
||||(January-September)||(January-September)|
|I. Cash flows from operating activities:||||||
|Cash received from the sale of goods andrendering of services||139,498,787,397.46||90,110,978,075.44||
|Net increase in customer and interbankdeposits||||||
|Net increase in borrowing from PBOC||||||
|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||||||
|Net increase from the disposal offinancial assets measured at fair value andchanges of which included in currentprofit and loss||||||
|Cash paid for interest, bank charges andcommissions||||||
|Net increase in cash borrowed||||||
|Net increase in cash received fromrepurchase operation||||||
|Refunds of taxes||933,453,763.81||499,360,330.52||
|Cash received from other relatedoperating activities||641,640,968.26||671,981,686.17||
|Sub-total of cash inflows fromoperating activities||141,073,882,129.53||91,282,320,092.13||
|Cash paid on purchase of goods andservices||99,997,320,327.27||64,518,763,975.56||
|Net increase in loans and advances||||||
|Net increase in deposits in PBOC andinterbank||||||
|Cash paid for compensation paymentsunder original insurance contract||||||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Cash paid for interest, bank charges andcommissions|||
|Cash paid for insurance policy dividend|||
|Cash paid to and on behalf of employees|11,219,814,215.75|7,808,375,565.15|
|Cash paid for all types of taxes|5,736,748,757.22|5,149,863,599.32|
|Cash paid to other operation relatedactivities|9,959,945,830.35|8,859,372,397.16|
|Sub-total of cash outflows fromoperating activities|126,913,829,130.59|86,336,375,537.19|
|Net cash flows from operatingactivities|14,160,052,998.94|4,945,944,554.94|
|II. Cash flows from investing activities:|||
|Cash received from disposal ofinvestments|52,073,162.58|580,469,201.21|
|Cash received from return oninvestments|240,271,551.96|132,888,904.12|
|Net cash received from the disposal offixed assets, intangible assets and otherlong term assets|44,493,426.47|26,085,548.94|
|Net cash received from disposal ofsubsidiaries and other operating entities|155,037,270.54||
|Cash received from other investmentrelated activities||3,693,847.50|
|Sub-total of cash inflows frominvesting activities|491,875,411.55|743,137,501.77|
|Cash paid on purchase of fixed assets,intangible assets and other long termassets|2,614,123,880.97|2,050,472,227.16|
|Cash paid for investments|2,597,591,667.47|1,201,539,611.53|
|Net increase in secured loans|||
|Net cash paid on acquisition ofsubsidiaries and other operating entities|88,429,231.46|36,398,588,501.66|
|Cash paid on other investment relatedactivities||3,861,165.47|
|Sub-total of cash outflows frominvesting activities|5,300,144,779.90|39,654,461,505.82|
|Net cash flows from investingactivities|-4,808,269,368.35|-38,911,324,004.05|
|III. Cash flows from financing activities:|||
|Cash received from investment|1,347,292,085.10|10,839,764.43|
|Including: cash received bysubsidiaries from minority shareholders’investment|||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Cash received from borrowings|16,802,698,248.06|37,147,302,314.09|
|Cash received from issuing bonds|||
|Cash received from other financingrelated activities|1,731,609.42||
|Sub-total of cash inflows fromfinancing activities|18,151,721,942.58|37,158,142,078.52|
|Cash paid on repayment of borrowings|16,985,670,538.25|6,080,035,623.81|
|Cash paid on distribution of dividends,profits, or interest expenses|2,010,741,534.99|1,767,259,255.68|
|Including: dividend, profit paid tominority shareholders by subsidiaries|||
|Cash paid on other financing activities|47,799,254.84|168,740,536.91|
|Sub-total of cash outflows fromfinancing activities|19,044,211,328.08|8,016,035,416.40|
|Net cash flows from financingactivities|-892,489,385.50|29,142,106,662.12|
|IV. Effect of fluctuations in exchangerates on cash and cash equivalents|-184,484,131.52|-56,520,198.96|
|V. Net increase in cash and cashequivalents|8,274,810,113.57|-4,879,792,985.95|
|Add: balance of cash and cashequivalents at the beginning of the period|23,510,900,890.49|24,725,880,770.59|
|VI. Balance of cash and cash equivalentsat the end of the period|31,785,711,004.06|19,846,087,784.64|

Legal representative: Liang Haishan Chief accountant: Gong Wei Person in charge of accounting department: Ying Ke(应珂) Cash Flow Statement of the Parent Company
January-September 2017
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
|||||||
|-|-|-|-|-|-|
||||Amount as at the||Amount as at the|
||||beginning of||beginning of last|
||Items||the year to the end of||year to the end of the|
||||the reporting period||reporting period|
||||(January-September)||(January-September)|
|I. Cash flows from operating activities:||||||
|Cash received from the sale of goodsand rendering of services||427,739,667.35||314,712,571.18||
|Refunds of taxes||55,711,962.27||12,451,222.14||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Cash received from other relatedoperating activities|54,115,058.79|46,880,078.85|
|Sub-total of cash inflows fromoperating activities|537,566,688.41|374,043,872.17|
|Cash paid on purchase of goods andservices|1,452,092,842.51|431,718,199.28|
|Cash paid to and on behalf of employees|564,703,136.34|241,922,703.85|
|Cash paid for all types of taxes|137,011,406.78|116,783,336.85|
|Cash paid to other operation relatedactivities|321,211,786.90|422,365,565.20|
|Sub-total of cash outflows fromoperating activities|2,475,019,172.53|1,212,789,805.18|
|Net cash flows from operatingactivities|-1,937,452,484.12|-838,745,933.01|
|II. Cash flows from investing activities:|||
|Cash received from disposal ofinvestments|||
|Cash received from return oninvestments|429,548,610.50|249,905,293.86|
|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|429,548,610.50|249,905,293.86|
|Cash paid on purchase of fixed assets,intangible assets and other long termassets|28,348,785.40|8,959,725.03|
|Cash paid for investments|793,311,762.50|15,748,337,507.50|
|Net cash paid on acquisition ofsubsidiaries and other operating entities|||
|Cash paid on other investment relatedactivities|||
|Sub-total of cash outflows frominvesting activities|821,660,547.90|15,757,297,232.53|
|Net cash flows from investingactivities|-392,111,937.40|-15,507,391,938.67|
|III. Cash flows from financing activities:|||
|Cash received from investment|||
|Cash received from borrowings|||

Third Quarterly Report of 2017
Qingdao Haier Co., Ltd.
||||
|-|-|-|
|Cash received from issuing bonds|||
|Cash received from other financingrelated activities|4,517,547,537.12|20,809,717,585.98|
|Sub-total of cash inflows fromfinancing activities|4,517,547,537.12|20,809,717,585.98|
|Cash paid on repayment of borrowings|||
|Cash paid on distribution of dividends,profits, or interest expenses|1,512,155,876.29|1,279,850,811.18|
|Cash paid on other financing activities|1,041,960.00|139,903,557.84|
|Sub-total of cash outflows fromfinancing activities|1,513,197,836.29|1,419,754,369.02|
|Net cash flows from financingactivities|3,004,349,700.83|19,389,963,216.96|
|IV. Effect of fluctuations in exchangerates on cash and cash equivalents|-2,101.16||
|V. Net increase in cash and cashequivalents|674,783,178.15|3,043,825,345.28|
|Add: balance of cash and cashequivalents at the beginning of the period|3,888,623,400.28|562,827,007.96|
|VI. Balance of cash and cash equivalentsat the end of the period|4,563,406,578.43|3,606,652,353.24|

Legal representative: Liang Haishan Chief accountant: Gong Wei Person in charge of accounting department: Ying Ke(应珂) 4.2 Audit Report
□Applicable√Not Applicable