2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Hangzhou Robam Appliances Co., Ltd. 2019 Third Quarter Report October 2019 2019 Third Quarter Full Report 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 2 of 32 2019 Third Quarter Full Report 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 End of the reporting the 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 companies 6,375,359,070.29 6,045,384,387.57 5.46% (yuan) Increase/decreas From the e at the end of Increase/decreas beginning of the the reporting e this year Reporting period year to the end of period from the compared to the the reporting beginning of the previous year period year 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 companies 415,223,408.27 18.20% 1,085,627,402.47 7.31% (yuan) Net profits attributable to shareholders of the listed company 410,778,645.33 22.23% 1,033,318,224.34 11.36% after deduction of 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 net 6.86% 0.36% 17.37% -1.19% assets Non-recurring Profit and Loss Items and Amount √Applicable □ Not applicable Unit: CNY Page 3 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Amount from the beginning Item of the year to the end of the Description 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 ta x) 1,833,934.21 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 shareholders Number Pledge or freeze Shareholder Shareholdi Number of Shareholder's name of nature ng ratio shares held Status of Quantity shares Page 4 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. held shares with limited sales conditio ns Hangzhou Robam Domestic Industrial Group Co., non-state legal 49.68% 471,510,000 0 - 0 Ltd. person Hong Kong Securities Overseas legal 11.45% 108,623,698 0 - 0 Clearing Co. Ltd. person Domestic Shen Guoying 1.29% 12,240,000 0 - 0 natural person China Construction Bank Co., Ltd. - An xin Value Selected Stock Other 1.19% 11,336,419 0 - 0 Securities Investment Fund Domestic Hangzhou Jinchuang non-state legal 1.00% 9,451,985 0 - 0 Investment Co., Ltd. person Shenzhen Guoshi Capital Management Co., Ltd. - Guoshi Capital - Robam Agent Other 0.88% 8,311,165 0 - 0 Holding Stage 2 Structured Private Equity Fund Aberdeen Standard Investments (Asia) Overseas legal Limited - Aberdeen 0.75% 7,079,528 0 - 0 person Global - China A-Shares Fund Domestic Hangzhou Yinchuang non-state legal 0.74% 7,020,000 0 - 0 Investment Co., Ltd. person Domestic Ren Jianhua 0.62% 5,923,150 0 - 0 natural person Central Huijin State legal 0.60% 5,685,810 0 - 0 Investment Ltd. person Shareholding of top 10 shareholders with unlimited sales conditions Page 5 of 32 2019 Third Quarter Full Report 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. - An xin RMB common Value Selected Stock Securities Investment 11,336,419 11,336,419 share Fund RMB common Hangzhou Jinchuang Investment Co., Ltd. 9,451,985 9,451,985 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 RMB common Hangzhou Yinchuang Investment Co., Ltd. 7,020,000 7,020,000 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 Robam Industrial Group Co., Ltd. and the shareholder Description of the above-mentioned Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the shareholder association or concerted action natural 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 shareholders 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 6 of 32 2019 Third Quarter Full Report 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 7 of 32 2019 Third Quarter Full Report 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 decreas ed 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 perio d 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 year, 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 acquisition of Kinde last Page 8 of 32 2019 Third Quarter Full Report 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 9 of 32 2019 Third Quarter Full Report 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 10 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Section 4: Financial statements I. Financial statements 1. Consolidated Balance Sheet Unit: Hangzhou Robam Appliances Co., Ltd. September 30, 2019 Unit: yuan Item September 30, 2019 December 31, 2018 Current assets: Monetary capital 3,245,449,193.34 2,196,706,808.35 Deposit reservation for balance Lending funds Trading financial assets Financial assets measured with fair value and with the changes included in current profit and loss Derivative financial assets Notes receivable 1,638,067,218.35 1,268,146,296.01 Accounts receivable 504,403,716.91 446,773,135.47 Receivables financing Ad vances to suppliers 82,223,155.23 59,485,930.70 Premiums receivables Reinsurance accounts receivable Provision of cession receivable Other receivables 76,297,609.13 70,182,460.52 Including: Interest receivable Dividends receivable Redemptory monetary capital for sale Inventory 1,252,927,464.66 1,347,112,731.03 Contract assets Assets held for sales Non-current assets due within a year Other current assets 1,661,000,000.00 2,591,760,176.09 Page 11 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Total current assets 8,460,368,357.62 7,980,167,538.17 Non-current assets: Loans and advances Debt investment Available-for-sale financial assets 119,948,534.00 Other debt investments Held-to-maturity investment Long-term receivables Long-term equity investment 4,747,220.20 2,617,851.16 Other equity instrument investments 119,948,534.00 Other non-current financial assets Investment properties 114,835.04 121,575.14 Fixed assets 827,524,982.61 842,877,466.95 Construction in progress 251,902,361.51 184,440,655.49 Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 188,822,958.40 193,974,179.90 Development expenditure Goodwill 80,589,565.84 80,589,565.84 Long-term unamortized expenses 940,486.63 4,933,280.77 Deferred income tax assets 119,994,530.99 39,564,040.41 Other non-current assets 18,781,695.00 6,126,821.00 Total non-current assets 1,613,367,170.22 1,475,193,970.66 Total assets 10,073,735,527.84 9,455,361,508.83 Current liabilities Short-term borrowing Borrowings from central bank Borrowing funds Trading financial liabilities Financial liabilities measured with fair value and with the changes included in current profit and loss Derivative financial liabilities Notes payable 506,112,976.05 411,414,985.01 Page 12 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Accounts payable 1,576,761,406.44 1,195,563,149.37 Ad vance from customers 1,002,475,900.77 1,170,088,458.14 Contract liabilities Financial assets sold for repurchase Deposits from customers and interbank Acting trading securities Acting underwriting securities Payroll payable 9,734,481.06 107,349,495.30 Tax payable 186,071,573.71 113,248,653.85 Other payables 228,913,042.01 234,490,187.04 Including: Interest payable Dividends payable Fees and commissions payable Dividend payable for reinsurance Liabilities held for sales Non-current liabilities due within a year Other current liabilities Total current liabilities 3,510,069,380.04 3,232,154,928.71 Non-current liabilities Reserve fund for insurance contracts Long-term borrowing Bonds payable Including: preferred stock Perpetual bond Lease liabilities Long-term payable Long-term payroll payable Estimated liabilities Deferred income 78,992,037.91 82,021,091.35 Deferred income tax liabilities 9,476,406.55 10,337,139.79 Other non-current liabilities Total non-current liabilities 88,468,444.46 92,358,231.14 Total liabilities 3,598,537,824.50 3,324,513,159.85 Owner's equity: Page 13 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Capital stock 949,024,050.00 949,024,050.00 Other equity instruments Including: preferred stock Perpetual bond Capital reserve 401,799,332.67 401,689,801.42 Minus: treasury stock 3,456,989.00 Other comprehensive income Special reserve Surplus reserves 474,516,412.50 474,516,412.50 General risk preparation Undistributed profit 4,550,019,275.12 4,223,611,112.65 Total owners' equities attributable to the owners of parent 6,375,359,070.29 6,045,384,387.57 company Minority equity 99,838,633.05 85,463,961.41 Total owners' equities 6,475,197,703.34 6,130,848,348.98 Total liabilities and owners' equities 10,073,735,527.84 9,455,361,508.83 Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu 2. Balance sheet of parent company Unit: yuan Item September 30, 2019 December 31, 2018 Current assets: Monetary capital 3,095,127,527.64 2,017,251,340.16 Trading financial assets Financial assets measured with fair value and with the changes included in current profit and loss Derivative financial assets Notes receivable 1,638,067,218.35 1,261,896,296.01 Accounts receivable 468,545,818.24 438,002,392.66 Receivables financing Ad vances to suppliers 75,845,354.68 48,995,796.40 Other receivables 54,767,795.54 64,301,240.95 Including: Interest receivable Dividends receivable Page 14 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Inventory 1,188,214,158.25 1,267,525,767.58 Contract assets Assets held for sales Non-current assets due within a year Other current assets 1,500,000,000.00 2,448,736,487.97 Total current assets 8,020,567,872.70 7,546,709,321.73 Non-current assets: Debt investment Available-for-sale financial assets 119,948,534.00 Other debt investments Held-to-maturity investment Long-term receivables Long-term equity investment 231,253,153.93 224,608,888.64 Other equity instrument investments 119,948,534.00 Other non-current financial assets Investment properties 445,341.88 470,485.36 Fixed assets 799,628,406.54 815,345,909.65 Construction in progress 251,675,946.41 184,365,655.49 Productive biological assets Oil and gas assets Right-of-use assets Intangible assets 159,099,879.95 161,743,355.41 Development expenditure Goodwill Long-term unamortized expenses 231,915.18 4,933,280.77 Deferred income tax assets 120,584,767.57 38,723,474.50 Other non-current assets 18,781,695.00 6,126,821.00 Total non-current assets 1,701,649,640.46 1,556,266,404.82 Total assets 9,722,217,513.16 9,102,975,726.55 Current liabilities Short-term borrowing Trading financial liabilities Financial liabilities measured with fair value and with the changes included in current profit and loss Page 15 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Derivative financial liabilities Notes payable 505,812,976.05 409,057,910.01 Accounts payable 1,516,115,738.94 1,158,684,039.60 Ad vance from customers 951,864,889.79 1,067,652,543.09 Contract liabilities Payroll payable 62,564.09 88,814,022.76 Tax payable 173,930,045.06 99,200,231.67 Other payables 205,506,081.22 215,230,256.63 Including: Interest payable Dividends payable Liabilities held for sales Non-current liabilities due within a year Other current liabilities Total current liabilities 3,353,292,295.15 3,038,639,003.76 Non-current liabilities Long-term borrowing Bonds payable Including: preferred stock Perpetual bond Lease liabilities Long-term payable Long-term payroll payable Estimated liabilities Deferred income 78,992,037.91 82,021,091.35 Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 78,992,037.91 82,021,091.35 Total liabilities 3,432,284,333.06 3,120,660,095.11 Owner's equity: Capital stock 949,024,050.00 949,024,050.00 Other equity instruments Including: preferred stock Perpetual bond Capital reserve 401,754,349.66 401,644,818.41 Page 16 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Minus: treasury stock 3,456,989.00 Other comprehensive income Special reserve Surplus reserves 474,516,412.50 474,516,412.50 Undistributed profit 4,464,638,367.94 4,160,587,339.53 Total owners' equities 6,289,933,180.10 5,982,315,631.44 Total liabilities and owners' equities 9,722,217,513.16 9,102,975,726.55 3. Consolidated income statement in this reporting period Unit: yuan Amount incurred in current Amount incurred in Item period previous period I. Total operating income 2,097,606,924.30 1,897,226,702.39 Including: Operating income 2,097,606,924.30 1,897,226,702.39 Interest revenue Premium earned Fee and commission income II. Total operating costs 1,626,491,205.87 1,540,956,134.57 Including: Operating costs 929,416,753.92 890,372,953.14 Interest expenditure Fee and commission expense Surrender value Net payments for insurance claims Net reserve fund extracted for insurance liability Bond insurance expense Reinsurance costs Taxes and surcharges 16,898,617.83 15,144,024.00 Selling expenses 566,766,627.49 530,494,123.51 Management costs 67,127,915.14 64,363,432.80 Research and development expenses 76,250,213.58 71,418,205.97 Financial expenses -29,968,922.10 -30,836,604.85 Including: interest expenditure Interest revenue 29,217,382.55 30,076,489.36 Plus: other incomes 3,751,701.65 3,795,700.21 Page 17 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Income from investment (loss expressed with 25,609,237.33 34,848,138.32 “-”) Including: Income from investment of joint 2,060,171.09 -12,581.48 venture and cooperative enterprise Income from derecognition of financial assets measured at amortized cost Exchange gain (loss expressed with “-”) Net exposure hedging gain (loss expressed with “-”) Income from fair value changes (loss expressed with “-”) Credit impairment losses (loss expressed with -654,094.55 “-”) Assets impairment losses (loss expressed with 6,844,425.59 “-”) Income from disposal of assets (loss expressed 330,810.85 48,510.44 with “-”) III. Operating profits (loss expressed with “-”) 500,153,373.71 401,807,342.38 Plus: Non-operating income 1,516,796.98 908,976.86 Less: non-operating expenditure 1,002,387.45 95,558.47 IV. Total profits (total loss expressed with “-”) 500,667,783.24 402,620,760.77 Less: Income tax e xpenses 78,082,299.02 46,683,146.64 V. Net profits (net loss expressed with “-”) 422,585,484.22 355,937,614.13 i. Classified by business continuity 1. Net profits from going concern (net loss 422,585,484.22 355,937,614.13 expressed with “-”) 2. Net profits from discontinuing operation (net loss expressed with “-”) ii. Classified by ownership 1. Net owners' profits attributable to the owners of 415,223,408.27 351,293,563.34 parent company 2. * Minority interest income 7,362,075.95 4,644,050.79 VI. Net of tax of other comprehensive income Net amount of other comprehensive income after tax attributed to parent company owners i. Other comprehensive income that can't be reclassified into profit and loss Page 18 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan 2. Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method 3. Fair value change of other equity instrument investments 4. Fair value change of enterprise credit risks 5. Other ii. Other comprehensive income that will be reclassified into profit and loss 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method 2. Fair value change of other debt investments 3. Changes in fair value through profit and loss of available-for-sale financial assets 4. Amount of financial assets reclassified into other comprehensive income 5. Held-to-maturity investment reclassified into available-for-sale financial assets 6. Provision for credit impairment of other debt investments 7. Cash flow hedging reserve 8. Balance arising from the translation of foreign currency financial statements 9. Other Net amount of other comprehensive income after tax attributed to minority shareholders VII. Total comprehensive income 422,585,484.22 355,937,614.13 Total comprehensive income belonging to parent 415,223,408.27 351,293,563.34 company Total comprehensive income attributed to minority 7,362,075.95 4,644,050.79 shareholders VIII. Earnings per share: i. Basic EPS 0.44 0.37 ii. Diluted EPS 0.44 0.37 In case of business combination involving enterprises under common control in this period, the net profits achieved by the Page 19 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. combined enterprise before combination were RMB and achieved by the combined enterprise in previous period were RMB . Legal representative: Ren Jianhua Head of accounting work: Zhang Guofu Head of accounting body: Zhang Guofu 4. Income statement of parent company in this reporting period Unit: yuan Amount incurred in current Amount incurred in Item period previous period I. Operating income 1,913,478,145.97 1,727,137,272.30 Subtract: Operating costs 870,660,956.25 827,910,952.66 Taxes and surcharges 14,928,367.84 13,704,788.27 Selling expenses 494,289,468.62 459,765,926.40 Management costs 46,258,967.41 48,036,306.77 Research and development expenses 74,014,215.72 69,187,392.44 Financial expenses -29,842,457.70 -27,301,366.88 Including: interest expenditure Interest revenue 28,950,692.46 26,427,376.40 Plus: other incomes 3,432,351.15 2,495,403.38 Income from investment (loss expressed with “-”) 23,532,336.60 34,848,138.32 Including: Income from investment of joint 1,364,267.48 -12,581.48 venture and cooperative enterprise Income from derecognition of financial assets measured at amortized cost Net exposure hedging gain (loss expressed with “-”) Income from fair value changes (loss expressed with “-”) Credit impairment losses (loss expressed with “-”) -1,347,328.85 Assets impairment losses (loss expressed with 6,486,076.46 “-”) Income from disposal of assets (loss expressed 51,884.79 48,510.44 with “-”) II. Operating profits (loss expressed with “-”) 468,837,871.52 379,711,401.24 Plus: Non-operating income 1,450,130.00 909,578.60 Less: non-operating expenditure 75,873.91 86,238.94 Page 20 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. III. Total profits (total loss expressed with “-”) 470,212,127.61 380,534,740.90 Less: Income tax e xpenses 70,416,452.79 43,236,772.23 IV. Net profits (net loss expressed with “-”) 399,795,674.82 337,297,968.67 i. Net profits from going concern (net loss expressed 399,795,674.82 337,297,968.67 with “-”) ii. Net profits from discontinuing operation (net loss expressed with “-”) V. Net of tax of other comprehensive income i. Other comprehensive income that can't be reclassified into profit and loss 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan 2. Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method 3. Fair value change of other equity instrument investments 4. Fair value change of enterprise credit risks 5. Other ii. Other comprehensive income that will be reclassified into profit and loss 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method 2. Fair value change of other debt investments 3. Changes in fair value through profit and loss of available-for-sale financial assets 4. Amount of financial assets reclassified into other comprehensive income 5. Held-to-maturity investment reclassified into available-for-sale financial assets 6. Provision for credit impairment of other debt investments 7. Cash flow hedging reserve 8. Balance arising from the translation of foreign currency financial statements 9. Other Page 21 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. VI. Total comprehensive income 399,795,674.82 337,297,968.67 VII. Earnings per share: i. Basic EPS ii. Diluted EPS 5. Consolidated Statement of Income from the beginning of the year to the end of the reporting period Unit: yuan Amount incurred in current Amount incurred in Item period previous period I. Total operating income 5,625,020,807.26 5,393,889,267.86 Including: Operating income 5,625,020,807.26 5,393,889,267.86 Interest revenue Premium earned Fee and commission income II. Total operating costs 4,439,593,417.70 4,354,495,704.86 Including: Operating costs 2,528,818,716.74 2,519,018,355.86 Interest expenditure Fee and commission expense Surrender value Net payments for insurance claims Net reserve fund extracted for insurance liability Bond insurance expense Reinsurance costs Taxes and surcharges 46,357,616.21 48,853,295.63 Selling expenses 1,556,811,534.10 1,495,239,191.95 Management costs 183,299,443.91 189,057,262.33 Research and development expenses 183,879,999.71 181,241,873.33 Financial expenses -59,573,892.97 -78,914,274.24 Including: interest expenditure 201,831.98 Interest revenue 59,525,309.87 78,194,467.53 Plus: other incomes 60,590,883.49 63,319,835.29 Income from investment (loss expressed with “-”) 65,468,211.82 75,618,417.94 Including: Income from investment of joint venture 2,129,369.04 643,022.56 and cooperative enterprise Page 22 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Income from derecognition of financial assets measured at amortized cost Exchange gain (loss expressed with “-”) Net exposure hedging gain (loss expressed with “-”) Income from fair value changes (loss expressed with “-”) Credit impairment losses (loss expressed with “-”) -9,606,123.78 Assets impairment losses (loss expressed with -1,741,053.34 “-”) Income from disposal of assets (loss expressed 34,138.62 111,267.72 with “-”) III. Operating profits (loss expressed with “-”) 1,301,914,499.71 1,176,702,030.61 Plus: Non-operating income 3,128,743.07 6,585,510.73 Less: non-operating expenditure 3,884,831.50 1,223,275.90 IV. Total profits (total loss expressed with “-”) 1,301,158,411.28 1,182,064,265.44 Less: Income tax e xpenses 201,156,337.17 165,791,085.97 V. Net profits (net loss expressed with “-”) 1,100,002,074.11 1,016,273,179.47 i. Classified by business continuity 1. Net profits from going concern (net loss 1,100,002,074.11 1,016,273,179.47 expressed with “-”) 2. Net profits from discontinuing operation (net loss expressed with “-”) ii. Classified by ownership 1. Net owners' profits attributable to the 1,085,627,402.47 1,011,633,069.40 owners of parent company 2. * Minority interest income 14,374,671.64 4,640,110.07 VI. Net of tax of other comprehensive income Net amount of other comprehensive income after tax attributed to parent company owners i. Other comprehensive income that can't be reclassified into profit and loss 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan 2. Other comprehensive income that can't be reclassified into profit and loss in the Page 23 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. invested enterprise under equity method 3. Fair value change of other equity instrument investments 4. Fair value change of enterprise credit risks 5. Other ii. Other comprehensive income that will be reclassified into profit and loss 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method 2. Fair value change of other debt investments 3. Changes in fair value through profit and loss of available-for-sale financial assets 4. Amount of financial assets reclassified into other comprehensive income 5. Held-to-maturity investment reclassified into available-for-sale financial assets 6. Provision for credit impairment of other debt investments 7. Cash flow hedging reserve 8. Balance arising from the translation of foreign currency financial statements 9. Other Net amount of other comprehensive income after tax attributed to minority shareholders VII. Total comprehensive income 1,100,002,074.11 1,016,273,179.47 Total comprehensive income belonging to parent 1,085,627,402.47 1,011,633,069.40 company Total comprehensive income attributed to minority 14,374,671.64 4,640,110.07 shareholders VIII. Earnings per share: i. Basic EPS 1.14 1.07 ii. Diluted EPS 1.14 1.07 In case of business combination involving enterprises under common control in this period, the net profits achieved by the combined enterprise before combination were RMB and achieved by the combined enterprise in previous period were RMB . Page 24 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Legal representative: Ren Head of accounting work: Zhang Guofu Head of accounting body: Jianhua Zhang Guofu 6. Income statement of parent company from the beginning of the year to the end of the reporting period Unit: yuan Amount incurred in current Amount incurred in Item period previous period I. Operating income 5,173,271,472.64 5,019,021,362.42 Subtract: Operating costs 2,378,159,108.17 2,399,568,710.77 Taxes and surcharges 41,260,532.79 44,613,880.30 Selling expenses 1,362,174,692.49 1,318,201,993.38 Management costs 127,376,083.37 133,529,192.15 Research and development expenses 177,725,385.19 179,011,059.80 Financial expenses -57,647,916.09 -74,727,743.91 Including: interest expenditure 201,831.98 Interest revenue 57,198,018.80 73,704,782.57 Plus: other incomes 55,342,033.44 61,726,939.46 Income from investment (loss expressed with “-”) 60,496,673.26 75,618,417.94 Including: Income from investment of joint venture 2,129,369.04 643,022.56 and cooperative enterprise Income from derecognition of financial assets measured at amortized cost Net exposure hedging gain (loss expressed with “-”) Income from fair value changes (loss expressed with “-”) Credit impairment losses (loss expressed with “-”) -10,495,755.49 Assets impairment losses (loss expressed with -1,159,416.88 “-”) Income from disposal of assets (loss expressed -244,787.44 111,267.72 with “-”) II. Operating profits (loss expressed with “-”) 1,249,321,750.49 1,155,121,478.17 Plus: Non-operating income 2,975,654.06 1,304,711.39 Less: non-operating expenditure 1,169,135.48 1,200,624.10 Page 25 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. III. Total profits (total loss expressed with “-”) 1,251,128,269.07 1,155,225,565.46 Less: Income tax e xpenses 187,858,000.66 159,784,888.28 IV. Net profits (net loss expressed with “-”) 1,063,270,268.41 995,440,677.18 i. Net profits from going concern (net loss expressed 1,063,270,268.41 995,440,677.18 with “-”) ii. Net profits from discontinuing operation (net loss expressed with “-”) V. Net of tax of other comprehensive income i. Other comprehensive income that can't be reclassified into profit and loss 1. Remeasure the variation of net indebtedness or net asset of defined benefit plan 2. Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method 3. Fair value change of other equity instrument investments 4. Fair value change of enterprise credit risks 5. Other ii. Other comprehensive income that will be reclassified into profit and loss 1. Other comprehensive income that will be reclassified into profit and loss in the invested enterprise under equity method 2. Fair value change of other debt investments 3. Changes in fair value through profit and loss of available-for-sale financial assets 4. Amount of financial assets reclassified into other comprehensive income 5. Held-to-maturity investment reclassified into available-for-sale financial assets 6. Provision for credit impairment of other debt investments 7. Cash flow hedging reserve 8. Balance arising from the translation of foreign currency financial statements 9. Other Page 26 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. VI. Total comprehensive income 1,063,270,268.41 995,440,677.18 VII. Earnings per share: i. Basic EPS ii. Diluted EPS 7. Consolidated statement of cash flow from the beginning of the year to the end of the reporting period Unit: yuan Amount incurred in Amount incurred in Item current period previous period I. Cash flow from operating activities: Cash from selling commodities or offering labor 5,597,588,789.97 6,295,843,787.05 Net increase of customer deposit and deposit from other banks Net increase of borrowings from central bank Net increase of borrowing funds from other financial institutions Cash from obtaining original insurance contract premium Cash received from insurance premium of original insurance contract Net increase of deposit and investment of insured Cash from interest, handling charges and commissions Net increase of borrowing funds Net increase of repurchase of business funds Net cash from acting trading securities Refund of tax and levies 548,519.01 821,982.79 Other cash received related to operating activities 137,720,406.72 179,718,177.48 Subtotal cash inflows from operating activities 5,735,857,715.70 6,476,383,947.32 Cash paid for selling commodities or offering labor 2,348,446,926.51 2,745,280,576.69 Net increase of customer loans and advances Net increase of amount due from central bank and interbank Cash paid for original insurance contract claims payment Net increase of lending funds Page 27 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Cash paid for interest, handling charges and commissions Cash paid for policy dividend Cash paid to and for employees 522,706,852.79 523,236,997.93 Taxes and fees paid 627,369,800.29 606,251,771.34 Other cash paid related to operating activities 1,202,119,273.35 1,400,953,957.63 Subtotal cash outflows from operating activities 4,700,642,852.94 5,275,723,303.59 Net cash flow from operating activities 1,035,214,862.76 1,200,660,643.73 II. Cash flow from investment activities: Cash from investment withdrawal 2,487,500,000.00 2,221,397,302.46 Cash from investment income 72,410,430.17 72,135,686.92 Net cash from disposal of fixed assets, intangible 517,944.71 150,287.23 assets and other long-term assets Net cash received from the disposal of subsidiaries and other business entities Other cash received related to investment activities Subtotal cash inflows from investment activities 2,560,428,374.88 2,293,683,276.61 Cash paid for the purchase and construction of fixed 210,767,796.17 108,113,334.10 assets, intangible assets and other long term assets Cash paid for investment 1,578,500,000.00 2,775,000,000.00 Net cash received from reinsurance business Net cash paid for obtaining subsidiaries and other 5,000,000.00 business units Other cash paid related to investment activities 10,000,000.00 Subtotal cash outflows from investment activities 1,794,267,796.17 2,893,113,334.10 Net cash flow from investment activities 766,160,578.71 -599,430,057.49 III. Cash flow from financing activities: Receipts from equity securities Including: Cash received from subsidies’ absorption of minority shareholders’ investment Cash received from borrowings Other cash received related to financing activities Subtotal cash inflows from financing activities Cash repayments of amounts borrowed Cash paid for distribution of dividends or profits and for 759,219,240.00 711,774,618.75 interest expenses Page 28 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Including: Dividends and profits paid by subsidiaries to minority shareholders Other cash paid related to financing activities 83,011.50 Subtotal cash outflows from financing activities 759,219,240.00 711,857,630.25 Net cash flow from financing activities -759,219,240.00 -711,857,630.25 IV. Impact of exchange rate movements on cash and 777,298.72 873,122.97 cash equivalents V. Net increase of cash and cash equivalents 1,042,933,500.19 -109,753,921.04 Plus: Balance of cash and cash equivalents at the 2,177,219,858.85 2,562,793,610.66 beginning of the period VI. Balance of cash and cash equivalents at the 3,220,153,359.04 2,453,039,689.62 beginning of the period 8. Cash flow statement of parent company from the beginning of the year to the end of the reporting period Unit: yuan Amount incurred in Amount incurred in Item current period previous period I. Cash flow from operating activities: Cash from selling commodities or offering labor 5,177,455,334.94 5,921,601,353.11 Refund of tax and levies Other cash received related to operating activities 115,072,030.83 145,771,354.01 Subtotal cash inflows from operating activities 5,292,527,365.77 6,067,372,707.12 Cash paid for selling commodities or offering labor 2,258,792,791.19 2,705,690,831.41 Cash paid to and for employees 408,109,017.82 419,964,548.20 Taxes and fees paid 566,307,011.96 549,632,416.57 Other cash paid related to operating activities 1,025,411,970.55 1,180,706,529.66 Subtotal cash outflows from operating activities 4,258,620,791.52 4,855,994,325.84 Net cash flow from operating activities 1,033,906,574.25 1,211,378,381.28 II. Cash flow from investment activities: Cash from investment withdrawal 2,130,000,000.00 2,221,397,302.46 Cash from investment income 67,438,891.61 72,135,686.92 Net cash from disposal of fixed assets, intangible 517,944.71 150,287.23 assets and other long-term assets Net cash received from the disposal of subsidiaries and other business entities Page 29 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Other cash received related to investment activities Subtotal cash inflows from investment activities 2,197,956,836.32 2,293,683,276.61 Cash paid for the purchase and construction of fixed 194,211,274.34 107,410,121.49 assets, intangible assets and other long term assets Cash paid for investment 1,204,500,000.00 2,887,320,000.00 Net cash paid for obtaining subsidiaries and other 5,000,000.00 business units Other cash paid related to investment activities 10,000,000.00 Subtotal cash outflows from investment activities 1,403,711,274.34 3,004,730,121.49 Net cash flow from investment activities 794,245,561.98 -711,046,844.88 III. Cash flow from financing activities: Receipts from equity securities Cash received from borrowings Other cash received related to financing activities Subtotal cash inflows from financing activities Cash repayments of amounts borrowed Cash paid for distribution of dividends or profits and for 759,219,240.00 711,774,618.75 interest expenses Other cash paid related to financing activities 83,011.50 Subtotal cash outflows from financing activities 759,219,240.00 711,857,630.25 Net cash flow from financing activities -759,219,240.00 -711,857,630.25 IV. Impact of exchange rate movements on cash and 777,331.45 873,049.89 cash equivalents V. Net increase of cash and cash equivalents 1,069,710,227.68 -210,653,043.96 Plus: Balance of cash and cash equivalents at the 2,000,183,395.66 2,411,423,559.90 beginning of the period VI. Balance of cash and cash equivalents at the 3,069,893,623.34 2,200,770,515.94 beginning of the period II. Statement of adjustment to financial statements 1. Adjustment of relevant items in financial statements at the beginning of the implementation year as a result of imple mentation of new financial instrument standards, new income standards and new release standards from 2019 √Applicable □ Not applicable Consolidated Balance Sheet Unit: yuan Page 30 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Item December 31, 2018 January 01, 2019 Adjusted figure Available-for-sale 119,948,534.00 0.00 -119,948,534.00 financial assets Other equity instrument 0.00 119,948,534.00 119,948,534.00 investments Balance sheet of parent company Unit: yuan Item December 31, 2018 January 01, 2019 Adjusted figure Available-for-sale 119,948,534.00 0.00 -119,948,534.00 financial assets Other equity instrument 0.00 119,948,534.00 119,948,534.00 investments 2. Retrospective adjustment of early comparative data description as a result of implementation of new financial instrument standards or new release standards from 2019 √Applicable □ Not applicable The Company designates some non-transactional equity investments to be held on and after January 1, 2019 as the financial assets measured at fair value of which changes are recorded into other comprehensive income, and presented as other equity instrument investments. On the first implementation date, the book value of the original financial assets is adjusted to a reconciliation statement o f the book value of the new financial assets classified and measured in accordance with the new financial instrument standards. Impact on consolidated financial statements Item December 31, 2018 Reclassification Remeasurem January 01, 2019 (Before change) ent (After change) Available-for-sale financial assets 119,948,534.00 (original standards) Less: those transferred to other equity 119,948,534.00 instrument investments Other equity instrument investments Plus: those transferred from 119,948,534.00 available-for-sale financial assets (original standards) Amount presented according to new 119,948,534.00 financial instrument standards Impact on the Company’s financial statements Page 31 of 32 2019 Third Quarter Full Report for Hangzhou Robam Appliances Co., Ltd. Item December 31, 2018 Reclassification Remeasurem January 01, 2019 (Before change) ent (After change) Available-for-sale financial assets 119,948,534.00 (original standards) Less: those transferred to other equity 119,948,534.00 instrument investments Other equity instrument investments Plus: those transferred from 119,948,534.00 available-for-sale financial assets (original standards) Amount presented according to new 119,948,534.00 financial instrument standards III. Audit Report Whether the third quarter report is audited □Yes √No The Company's third quarter report is unaudited. Page 32 of 32