Qingdao Haier sets Offer Price for D-Shares at EUR 1.05 per share

Not for distribution, directly or indirectly, in the United States, Australia, Canada or Japan.

Qingdao Haier sets Offer Price for D-Shares at EUR 1.05 per share

- Qingdao Haier expects to receive total gross proceeds of approx. EUR 278.25 million (equivalent to RMB 2,211.61 million)¹ before exercise of the greenshoe option, with potential for an additional approx. EUR 41.74 million (equivalent to RMB 331.74 million)^[1] if the greenshoe option is fully exercised.

- Qingdao Haier intends to use the proceeds from the sale of the D-Shares to promote the Haier brand and to support the growth of the Company's business internationally with a focus on Europe, for example part-fund the planned EUR 475 million acquisition of Candy S.p.A., a European household appliance manufacturer.

- The Company has secured cornerstone orders from (i) Silk Road Fund Co. Ltd. in the size of 55 million shares at the Offer Price, (ii) Camry Investment S.à r.l., a subsidiary of SINO-CEE Investment S.à r.l, for an aggregate maximum purchase price of EUR 60 million and (iii) Rechi Precision Co. Ltd. for an aggregate maximum purchase price of EUR 20 million.

- The shares are expected to start trading on 24 October 2018.

- The company's D-Shares will be denominated in Euro.

- Holders of the D-Shares will have full dividend entitlement for the financial year beginning on 1 January 2018.

Qingdao / Shanghai / Frankfurt, 19 October 2018 - Qingdao Haier Co., Ltd. (SHA: 600690, "Qingdao Haier" or "the Company"), a Chinese household appliance producer already listed in Shanghai (A-Shares), today has set the final offer price at EUR 1.05 per D-Share in connection with its D-Share listing on the China Europe International Exchange AG D-Share Market (the "CEINEX D-Share Market") through admission to trading on the regulated market segment of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with simultaneous admission to the sub-segment of the regulated market with additional post-admission obligations (Prime Standard).

In connection with the offer, 304,750,000 D-Shares were placed with investors, consisting of 265,000,000 D-shares from a base-deal offering and 39,750,000 D-Shares in connection with an over-allotment, and expects to generate total gross proceeds of approximately EUR 278.25 million (equivalent to RMB 2,211.61 million)¹ before exercise of the greenshoe option, with potential for an additional EUR 41.74 million (equivalent to RMB 331.74 million)¹ in gross proceeds if the greenshoe option is fully exercised.

A European capital markets listing is an important part of Qingdao Haier's globalisation strategy. Qingdao Haier intends to use its proceeds from the sale of the D-Shares to promote the Haier brand and to support the growth of the Company's business internationally with a focus on Europe. In particular, the Company intends to use some of the proceeds to part-fund the planned acquisition of Candy, for the expansion of production capacity for smart appliances, as well as for the expansion of marketing channels in order to promote brand recognition with a focus on Europe. Another part of the proceeds is intended to be used on research and development, particularly in Europe. Any excess proceeds, or proceeds not used in line with the above estimates, will be used for general corporate purposes.

In 2017 and the first half of 2018, Qingdao Haier generated overseas revenues totalling RMB 67.4 billion and RMB 35.8 billion respectively, accounting for 42% and 40% of its total revenues respectively.

Liang Haishan, CEO of Qingdao Haier said: "We are delighted by the positive response we have received from investors across the world to our upcoming listing in Frankfurt on the CEINEX D-Share Market and are very pleased to welcome our new shareholders to the register. We are excited about the momentum across the company and are fully focused on continuing to deliver our growth strategy through further investments into our international footprint and R&D to accelerate the IoT revolution in home appliances."

The D-Shares of the Company are expected to start trading on October 24, 2018 on the CEINEX D-Share Market and, simultaneously, on the sub-segment of the regulated market (Prime Standard) of Frankfurt Stock Exchange. For the D-Shares the international securities identification number (ISIN) will be CNE1000031C1.

^[1] With a conversion rate of 7.9483 RMB to 1 Euro.
 

About Qingdao Haier Co., Ltd. (SSE: 600690):

Qingdao Haier is a leading global household appliance manufacturer with a focus on smart home and mass customisation solutions for consumers. Qingdao Haier designs, manufactures and sells a wide range of household appliances including refrigerators, freezers, washing machines, air-conditioners, water heaters, kitchen appliances and small household appliances under a global portfolio of leading household appliance brands including Haier, GE Appliances, Fisher & Paykel, AQUA, Casarte and Leader. As the leading smart home solutions provider, Qingdao Haier has developed three platforms; U+ Smart Life (a cloud-based provider of integrated smart home solutions), COSMOPlat (a customer-oriented industrial internet platform that allows for mass customisation) and Shunguang (a platform that facilitates the integration of Haier's online, offline and micro-store businesses and promotes user interaction to further enhance the user experience).

Qingdao Haier has been the top selling major household appliances company in the world in terms of total global retail volume for seven consecutive years from 2011 to 2017, with a global market share of 13.3% in terms of retail sales volume in 2017, according to Euromonitor. According to the same source, Qingdao Haier was also the top seller in refrigeration appliances, home laundry appliances and interconnected air-conditioners in terms of global retail volume in 2017.

Media Contact:
David Stürken - Maitland / AMO, London
T: +44 (0) 207 379 5151
M: +44 (0) 7990 595 913
Email: dsturken@maitland.co.uk

IR contact:
Yao Sun (Sophie) - Qingdao Haier Germany
M: +49 160 9469 3601
Email: y.sun@haier.de

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