Haier Smart Home Co.,Ltd.: Announcement Regarding the Updates in Relation to the Possible Privatisation of Haier Electronics Group Co., Ltd.

Announcement pursuant to Section 50 para. 1 no. 2 German Securities Trading Act (WpHG)

Announcement Regarding the Updates in Relation to the Possible Privatisation of Haier Electronics Group Co., Ltd. Qingdao / Shanghai / Frankfurt, 16 March 2020 - Haier Smart Home Co., Ltd. (D-Share ISIN CNE1000031C1, A-Share ISIN CNE000000CG9, "Haier Smart Home" or the "Company") published an announcement pursuant to the Hong Kong Code on Takeovers and Mergers and a reminder announcement on the Shanghai Stock Exchange with regard to the updates in relation to the Possible Privatisation of Haier Electronics Group Co., Ltd.

On 12 December 2019, Haier Smart Home Co., Ltd. (the "Company") made a clarification announcement to clarify the news report regarding the planning of a H-share listing and privatisation of Haier Electronics Group Co., Ltd. (the "Haier Electronics", a company incorporated in Bermuda and listed on The Stock Exchange of Hong Kong Limited (stock code: HK 1169), and the proposal of a possible privatisation of Haier Electronics, the "Possible Privatisation").

This clarification announcement was published pursuant to Art. 17 para. 1 MAR.

1. Current Progress The Company has made the following announcements:

(1) the announcement pursuant to Rule 3.7 of the Hong Kong Code on Takeovers and Mergers (the "Takeovers Code") in relation to the Possible Privatisation on 16 December 2019 on HKEXnews website (http://www.hkexnews.hk);

(2) the announcement in relation to the updates on the number of relevant securities of the Company pursuant to Rule 3.8 of the Takeovers Code on 17 December 2019 on HKEXnews website (http://www.hkexnews.hk); and

(3) the monthly update announcement (jointly announced with Haier Electronics) pursuant to Rule 3.7 of the Takeovers Code in relation to the Possible Privatisation of Haier Electronics on 16 January 2020 on both HKEXnews website (http://www.hkexnews.hk) and Shanghai Stock Exchange website （www.sse.com.cn）.

(4) the monthly update announcement (jointly announced with Haier Electronics) pursuant to Rule 3.7 of the Takeovers Code in relation to the Possible Privatisation of Haier Electronics on 14 February 2020 on both HKEXnews website (http://www.hkexnews.hk) and Shanghai Stock Exchange website （www.sse.com.cn）.

2. Monthly Updates In compliance with Rule 3.7 of the Takeovers Code, monthly announcement(s) setting out the progress of the talks or the consideration of the Possible Privatisation will be made until an announcement is made of a firm intention to make an offer under Rule 3.5 of the Takeovers Code or of a decision not to proceed with the Possible Privatisation.

Therefore, the Company has made a monthly update announcement (jointly announced with Haier Electronics) pursuant to Rule 3.7 of the Takeovers Code in relation to the Possible Privatisation of Haier Electronics (the "Monthly Update Announcement") in the evening of 16 March 2020 on HKEXnews website (http://www.hkexnews.hk). The Monthly Update Announcement mainly states that the Company has been continuing to explore the proposal on the Possible Privatisation, and has been in ongoing consultations with the relevant regulators concerning the proposed transactions being explored in that regard; and as at the date of the announcement the Company has not furnished a definitive Possible Privatisation proposal to Haier Electronics, no agreement or other commitment has been made by the Company as to whether to proceed with the Possible Privatisation and the details and terms (including the exchange ratio and the timetable) of the Possible Privatisation are yet to be finalised, and there is no certainty that the Possible Privatisation will proceed.

3. Others The Company will make timely announcements in accordance to applicable rules and regulations. China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily and Shanghai Stock Exchange website (www.sse.com.cn) are the designated disclosure media of the Company. The Company will publish any information that it publishes and that may be of importance to the public in the European Union and the European Economic Area pursuant to Section 50 para. 1 German Securities Trading Act (WpHG). All investors are advised to exercise caution in dealing in the securities of the Company.

Important notice: As at the date of this announcement, the Company has been continuing to explore the proposal on the Possible Privatisation, and has been in ongoing consultations with the relevant regulators concerning the proposed transactions being explored in that regard; and the Company has not furnished a definitive Possible Privatisation proposal to Haier Electronics, no agreement or other commitment has been made by the Company as to whether to proceed with the Possible Privatisation and the details and terms (including the exchange ratio and the timetable) of the Possible Privatisation are yet to be finalised, and there is no certainty that the Possible Privatisation will proceed.

Haier Smart Home Co., Ltd. Board of Directors

16 March 2020