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2018 was below 10%. Given the development trend of products and technologies, the entire industry continued to strengthen product structure reforms, promote innovative technology and grasp opportunities for enhancing consumption and product structure. The refrigerator products have been developed in a high-end way and the air-conditioner products have been manufactured focusing on inverters upgrading, high efficiency, health and comfort as well as consumption enhancement. During the Reporting Period, the Company changed its name to Hisense Home Appliances Group Co., Ltd. . Facing the complicated, rigorous and ever-changing operating environment, the Company adhered to its original vision, upheld the value of producing home appliances and continued to develop its core businesses. It implemented Hisense Home Appliances 3.0 strategies and set out a corporate vision of revitalizing the national industry and sharing billion citizens with happiness , while adjusting and optimizing its internal structure and emphasizing on efficiency and capacities. The Company reached stable improvement in both business scale and efficiency, achieving operating revenues of RMB36.020 billion, representing a year-on-year increase of 7.56% and principal operating revenue of RMB32.791 billion, representing a year-on-year increase of 7.76%. Among which, revenue from the refrigerator and washing machine business recorded a year-on-year increase of 13.90%;

revenue from the air-conditioner business recorded a year-on-year increase of 2.08%;

the domestic sales business recorded a principal operating revenue of RMB22.039 billion, representing a year-on-year increase of 7.11%, whereas the export sales business recorded a principal operating revenue of RMB10.752 billion, representing a year-on-year increase of 9.10%. Net profits attributable to shareholders in the listed company reached RMB1.377 billion, in which net profits after deducting non-recurring gains or losses recorded a year-on-year increase of 12.36%. Earnings per share were RMB1.01. The Company continued to consolidate its assets management, accelerate the turnover of capital and reduce its inventory level. Turnover of inventories was accelerated by 1.23 days year-on-year. The Company'

s gearing ratio has significantly improved, which has decreased by 3.36 percentage points from the beginning to the end of the Reporting Period. During the Reporting Period, our refrigerator company has adhered to its operating vision of creating values for customers and producing products with high quality and has been committed to maintaining continuous improvement in operation. The Company continued to promote the concept of providing products and technologies with advanced-techniques, healthy and living elements and has been committed to manufacturing leading products based on reliable techniques. It expanded network channels, enhanced sales efficiency, attached importance to promoting brand quality, innovative advertisement and sales model, rapidly promoted brand image and reputation, focused on exploring new businesses and strengthened development of commercial cold chain. The air-conditioning company upheld the strategies of producing products with high quality , continued to develop innovative major and core technologies, adopted product upgrading measures that fulfill the requirements of health and comfort and enhanced product competitiveness continuously. Hisense Hitachi has launched a range of leading technological products, continued to maintain its strengths in technology and quality and strengthen cooperation with engineering companies and maintained stable growth through market segmentation.