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2 Major Events Calendar MARCH Adhering to manufacturing high-quality products , Hisense Hitachi was awarded the Quality Trustworthy Advance Enterprise in China. Hisense'

s Warm Idol washer dryer won the Gold Award of AWE Award 2018. MAY Breaking through the limitations of traditional refrigerators and giving more possibilities to the living room scene, the high-end living room cabinet, Hisense Bingbing Upright refrigerator was officially launched, which facilitates the creation of good living room and good life . AUGUST Hisense'

s God of Cookery series has been officially launched, which contributes to the development and expansion of the mid- to-high market of refrigerator products. Hisense'

s God of Cookery refrigerators, Male Idol X air conditioners and Warm Idol X9 washing machines were introduced to the IFA exhibition in Germany and won the Product Innovation Award , Technology Innovation Award and Design Innivation Award in 2018, respectively. SEPTEMBER The commercial cold chain company held a press release for Hisense Commercial 4.0 solutions with the theme of experiencing the future with innovative technologies and has actively developed differentiated products, enhanced product competitiveness and promoted the rapid growth of new industries. OCTOBER The Company changed its company name and stock name to Hisense Home Appliances Group Co., Ltd. and Hisense HA . NOVEMBER The Company launched a cultural transmission of the quality of Ronshen ceremony celebrating the 35th anniversary of Ronshen series, to demonstrate and share our remarkable achievement over the past

35 years. The brand has been widely recognized by the public with its mission of maintaining high quality of Ronshen products . With its innovative technologies promoting green development, satisfying users'

needs for green lifestyle and building the core competitiveness of the Company, Hisense (Shandong) Air-Conditioning Co. Ltd., a subsidiary of the Company, was successfully shortlisted Green Pioneers

2018 . DECEMBER Hisense Refrigerator adhered to performing social responsibilities and supporting public welfare, winning the 4th Red-top Public Welfare Award. Hisense Comfort Home X610 air-purifying filter air-conditioner won the People'

s Ingenious Product Award (人民匠心产品 奖) .

3 Chairman'

s Statement Dear Shareholders: I am pleased to present the annual report of the Company for the year ended

31 December

2018 (the Reporting Period ) for shareholders'

review. During the Reporting Period, the refrigerator market remained sluggish during the Reporting Period. According to inferential statistics from the China Market Monitor Company Limited ( CMM ), cumulative retail volume in the refrigerator sector in

2018 decreased by 6.2% year-on-year while cumulative retail amounts only grew by 0.7% year-on-year. The domestic air-conditioner market slowed down after an upward trend. Due to the negative impacts from property market and the macroeconomic downturn in second half of 2018, the offline market in all levels of residential air-conditioner turned sales growth into a decline of over 10% in the second half of 2018. According to the inferential statistics from CMM, cumulative retail volume in the domestic air-conditioner sector grew by 2.3% year-on-year and cumulative retail amounts grew by 4.9% year-on-year in 2018. The growth acceleration of central air-conditioning market slowed. According to statistics from www. aicon.com.cn, as compared with the growth of approximately 20% in the domestic central air-conditioning market in 2017, the growth in the central air-conditioning market in