2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Stock code:002508 Abbreviation of securities: Robam Announcement No.:2019-039 Hangzhou Robam Appliances Co., Ltd. 2019 Third Quarter Report Text 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Section 1: Important Notes The board of directors, the board of supervisors and the directors, supervisors and senior management of the Company shall guarantee that the contents of the quarterly report are authentic, accurate and complete, free from false records, misleading statements Or major omissions, and shall bear individual and joint legal liabilities. All directors of the Company personally attended the board meeting to review this quarterly report. Ren Jianhua, the head of the Company, Zhang Guofu, the head of accounting work, and Zhang Guofu, the head of accounting body (accountant in charge), guarantee the authenticity, accuracy and completeness of the Financial statements in the quarterly report. Page 1 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Section 2: Basic status of company I. Major Accounting Data and Financial Indicators Whether the Company needs to retroactively adjust or restate the accounting data of the previous years □Yes √No Increase/decrease at the End of the reporting end of this reporting End of previous year period period compared to the end of the previous year Total assets (yuan) 10,073,735,527.84 9,455,361,508.83 6.54% Net assets attributable to shareholders of listed 6,375,359,070.29 6,045,384,387.57 5.46% companies (yuan) Increase/decrease From the at the end of the Increase/decrease beginning of the reporting period this year compared Reporting period year to the end of from the beginning to the previous the reporting of the year year period compared to the previous year Operating income (yuan) 2,097,606,924.30 10.56% 5,625,020,807.26 4.29% Net profits attributable to shareholders of listed 415,223,408.27 18.20% 1,085,627,402.47 7.31% companies (yuan) Net profits attributable to shareholders of the listed company after deduction of 410,778,645.33 22.23% 1,033,318,224.34 11.36% non-recurring profits and losses (yuan) Net cash flow from operating 376,523,778.18 381.97% 1,035,214,862.76 -13.78% activities (yuan) Basic EPS (yuan/share) 0.44 18.92% 1.14 6.54% Diluted EPS (yuan/share) 0.44 18.92% 1.14 6.54% Weighted average return on 6.86% 0.36% 17.37% -1.19% net assets Non-recurring Profit and Loss Items and Amount √Applicable □ Not applicable Page 2 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Unit: CNY Amount from the beginning of the year to Item Description the end of the reporting period Profits and losses on the disposal of non-current assets (including the write-off part of the provision for asset -1,171,725.00 impairment) Government subsidies included into the current profits and losses, except those government subsidies, which are closely related to the business of a company and enjoyed in 61,921,866.87 accordance with a certain standard quota or quantity of the state Profits and losses from investment or management assets 4,971,538.56 entrusted to others Income and expenditure other than those mentioned above -915,346.81 Less: Amount affected by income tax 10,663,221.28 Amount of minority shareholders' equity affected (after 1,833,934.21 tax) Total 52,309,178.13 -- Explain the non-recurrent profit and loss items defined by the Company according to the Interpretative Announcement No. 1 on Information Disclosure of Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses and defined from the non-recurrent profit and loss items enumerated in the Interpretative Announcement No. 1 on Information Disclosure of Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses □ Applicable √ Not applicable No definition of non-recurrent profit and loss items defined and enumerated in the Interpretative Announcement No. 1 on Information Disclosure of Pub lic Securities Issuing Companies - Non-recurrent Profits and Losses as non-recurrent profit and loss items during the reporting period. II. Total number of shareholders at the end of the reporting period and shareholding of top 10 shareholders 1. Number of common shareholders and preferred shareholders with voting rights restored, and shareholdings of the top 10 shareholders Unit: share Total number of preferred Total number of common shareholders with voting shareholders at the end of 60,911 0 rights restored at the end of the reporting period the reporting period (if any) Shareholdings of the top 10 s hareholders Page 3 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Number of Pledge or freeze shares Shareh Shareholder Number of held with Shareholder's name olding Status of nature shares held limited Quantity ratio shares sales conditions Domestic Hangzhou Robam non-state 49.68% 471,510,000 0 - 0 Industrial Group Co., Ltd. legal person Hong Kong Securities Overseas 11.45% 108,623,698 0 - 0 Clearing Co. Ltd. legal person Domestic Shen Guoying natural 1.29% 12,240,000 0 - 0 person China Construction Bank Co., Ltd. - An xin Value Other 1.19% 11,336,419 0 - 0 Selected Stock Securities Investment Fund Domestic Hangzhou Jinchuang non-state 1.00% 9,451,985 0 - 0 Investment Co., Ltd. legal person Shenzhen Guoshi Capital Management Co., Ltd. - Guoshi Capital - Robam Other 0.88% 8,311,165 0 - 0 Agent Holding Stage 2 Structured Private Equity Fund Aberdeen Standard Investments (Asia) Overseas 0.75% 7,079,528 0 - 0 Limited - Aberdeen Global legal person - China A-Shares Fund Domestic Hangzhou Yinchuang non-state 0.74% 7,020,000 0 - 0 Investment Co., Ltd. legal person Domestic Ren Jianhua natural 0.62% 5,923,150 0 - 0 person Central Huijin Investment State legal 0.60% 5,685,810 0 - 0 Ltd. person Shareholding of top 10 shareholders with unlimited sales conditions Page 4 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Number of shares held with unlimited Share type Shareholder's name sales conditions Share type Quantity Hangzhou Robam Industrial Group Co., RMB common 471,510,000 471,510,000 Ltd. share RMB common Hong Kong Securities Clearing Co. Ltd. 108,623,698 108,623,698 share RMB common Shen Guoying 12,240,000 12,240,000 share China Construction Bank Co., Ltd.- RMB common An xin Value Selected Stock Securities 11,336,419 11,336,419 share Investment Fund Hangzhou Jinchuang Investment Co., RMB common 9,451,985 9,451,985 Ltd. share Shenzhen Guoshi Capital Management Co., Ltd. - Guoshi Capital - Robam Agent RMB common 8,311,165 8,311,165 Holding Stage 2 Structured Private Equity share Fund Aberdeen Standard Investments (Asia) RMB common Limited-Aberdeen Global-China 7,079,528 7,079,528 share A-Shares Fund Hangzhou Yinchuang Investment Co., RMB common 7,020,000 7,020,000 Ltd. share RMB common Ren Jianhua 5,923,150 5,923,150 share RMB common Central Huijin Investment Ltd. 5,685,810 5,685,810 share The actual controller of the Company’s controlling shareholder Hangzhou Description of the above-mentioned Robam Industrial Group Co., Ltd. and the shareholder Hangzhou shareholder association or concerted Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural action person shareholder Shen Guo Ying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison. Securities margin trading business Not applicable attended by top 10 shareholders (if any) Whether the Company’s top 10 common shareholders and op 10 common shareho lders with unlimited sales conditions agreed on a repurchase transaction during the reporting period □Yes √No The Company’s top 10 common shareholders and op 10 common shareholders with unlimited sales conditions did not agree on a repurchase transaction during the reporting period Page 5 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. 2. Total number of preferred shareholders and the top 10 preferred shareholders’ shareholdings of the Company □ Applicable √ Not applicable Page 6 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Section 5: Important Matters I. Cases and causes for the change in the main financial data and financial indexes during the reporting period √Applicable □ Not applicable 1. Balance sheet items The monetary capital increased by 47.74% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the increase of the company's payment collection and the decrease of the amount of money to purchase the bank financial products. The advances to suppliers increased by 38.22% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the increase in the purchase of raw materials. Other current assets decreased by 35.91% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the decrease of the bank financing in the current period. Available-for-sale financial assets decreased by 100% at the end of the reporting period compared to the beginning of the year and other equity instrument investments increased by 100% compared to last year, which were caused by the change in the reclassification of items. The long-term equity in vestment increased by 81.34% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the profit increase of De Dietrich Trade (Shanghai) Co., Ltd. invested by the company in the current period. The construction in progress increased by 36.58% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the infrastructure investment in Maoshan Intelligent Manufacturing Park in the current period. The long-term unamortized expenses decreased by 80.94% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the amortization of long -term deferred expenses in previous period. The accounts payable increased by 31.88% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the increase in the purchase transactions with the sales revenue in the current period. The payroll payable decreased by 90.93% at the end of the reporting period compared to the beginning of the year, which was mainly caused by the payment of employee salaries and bonuses last year. The tax payable increased by 64.30% at the end of the reporting period compared to the beginning of the ye ar, which was mainly caused by the increase in the income tax expenses in the current period. 2. Income statement items The non-operating income decreased by 52.49% in the reporting period compared to the last year, which was mainly caused by the decrease of the government subsidies in the current period. The non-operating expenditure increased by 217.58% in the reporting period compared to the last year, which was mainly caused by the increase of the donation outlay and the scrap of some products in the current period. 3. Cash flow statement items The net cash flow from investment activities decreased by 227.81% in the reporting period compared to the last year, which was mainly caused by the company's payment for the investment fund for merger and acquis ition of Kinde last Page 7 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. year and no major investment projects in current period. II. Progress of important matters and their impact and solution analysis □ Applicable √ Not applicable Implementation progress of share repurchase □ Applicable √ Not applicable Implementation progress of reducing repurchased shares by centralized competitive bidding □ Applicable √ Not applicable III. Commitments not fully fulfilled by the Company’s actual controller, shareholders, related parties, acquirer and other commitment parties during the reporting period □ Applicable √ Not applicable No commitments not fully fulfilled by the Company’s actual controller, shareholders, related parties, acquirer and other commitment parties during the reporting period IV. Estimate of annual business performance for 2019 It is estimated that the change rate of the net profits attributable to shareholders of listed companies in 2019 ranges from 2% to 10% V. Financial assets measured with fair value □ Applicable √ Not applicable VI. Illegal external guarantee □ Applicable √ Not applicable No illegal external guarantee of the Company during the reporting period. VII. Non-operating occupation of funds of listed companies by controlling shareholders and their related parties □ Applicable √ Not applicable No non-operating occupation of funds of listed companies by controlling shareholders and their related parties during the reporting period. VIII. Entrusted financing √Applicable □ Not applicable Unit: 10,000 yuan Page 8 of 10 2019 Third Quarter Report Text for Hangzhou Robam Appliances Co., Ltd. Source of funds for Amount incurred in Overdue amount not Specific type Outstanding balance entrusted financing entrusted financing recovered Bank financial Owned fund 213,000 150,000 0 products Total 213,000 150,000 0 Specific circumstance of high-risk entrusted financing with significant single amount or with low security, poor liquidity and not break-even □ Applicable √ Not applicable The entrusted financing is expected not to recover the principal or has other circumstances that may cause impairment □ Applicable √ Not applicable IX. Registration form of reception, research, communication, interview and other activities during the reporting period √Applicable □ Not applicable Reception Type of received Reception time Basic information index of the survey way object See the Record Chart of Investor Relation Activities on July 01, 2019 Field survey Organization July 1 and 2, 2019 in cninfo See the Record Chart of Investor Relation Activities on September 18, 2019 Field survey Organization July 18 and 19, 2019 in cninfo See the Record Chart of Investor Relation Activities on September 16, 2019 Field survey Organization Septemb er 16 and 17, 2019 in cninfo See the Record Chart of Investor Relation Activities on September 18, 2019 Field survey Organization Septemb er 18-23, 2019 in cninfo See the Record Chart of Investor Relation Activities on September 25, 2019 Field survey Organization Septemb er 25, 2019 in cninfo Page 9 of 10