Haier Smart Home Co.,Ltd.: Announcement on the Acquisition of Assets from a Related Party against issuance of shares by a wholly owned subsidiary of the Company

Announcement on the Acquisition of Assets from a Related Party against issuance of shares by a wholly owned subsidiary of the Company Qingdao / Shanghai / Frankfurt, 2 July 2019 - Haier Smart Home Co., Ltd. (formerly known as Qingdao Haier Co., Ltd.) (D-Share ISIN CNE1000031C, A-Share ISIN CNE000000CG9, "Haier Smart Home" or the "Company") published a mandatory announcement in accordance with applicable trading rules of the Shanghai Stock Exchange and applicable PRC laws in relation to an acquisition of assets from its major shareholder, Haier Group Corporation (hereinafter referred to as "Haier Group"), against issuance of shares by a wholly owned subsidiary of the Company as well as an additional shares issuance against cash contributions to a further related party (the "Transaction").

Haier Kaos IOT Ecological Technology Co., Ltd. ("Kaos"), a wholly owned subsidiary of the Company, agreed with Haier Group to acquire the smart power & energy segment held by Haier Group at a consideration of RMB375,540,417 against issuance of registered capital of RMB74,434,124 to Haier Group. At the same time, Kaos agreed with Qingdao HaizhiHuiying Equity Investment Management Co., Ltd. (hereinafter referred to as "HaizhiHuiying"), which is also deemed to be a related party of the Company, that a private equity fund, to be established by HaizhiHuiying, subscribes for newly-increased registered capital of RMB67,827,236 of Kaos through capital contribution of RMB342,206,865 in cash in order to match Kaos's business expansion and financial demands, enhance Kaos's financial strength and to support the strategic development of Kaos's principal business.

The Board of Directors of the Company approved the Transaction, which is expected to be implemented until end of October 2019. Following the implementation of the Transaction, Haier Group and the private equity fund established by HaizhiHuiying will hold participations in Kaos of 6.40% and 5.83% respectively.

For further detailed information please see the "Announcement on Acquisition of Assets with Newly-increased Registered Capital and Introduction of Investors by Controlled Subsidiary and Related-Party Transaction" published on Company's website under http://www.haier.net/en/investor_relations/haier/gsgg/. IR contact: Yao Sun (Sophie) - Haier Smart Home Germany T: +49 6172 9454 143 F: +49 6172 9454 42143 M: +49 160 9469 3601 Email: y.sun@haier.de