Hisense Kelon Electrical Holdings Company Ltd.

Hisense Kelon, as one of the first refrigerators manufacturing enterprise ---Guangdong Shunde Pearl River Refrigerators Factory, of commenced its production of refrigerators in 1984. In Dec. 1992, after the approval word YUEGUSHEN [1992] No.29, which signed and issued by Guangdong Shareholding System Trial Investigation Group and Guangdong Commission for Restructuring the Economic Systems, the company had been reformed by the mean of raising funds from targeted sources. There were total capitalization 422,416,755 shares since the company was established, hereinto the net assets from ex-company converted into 337,915,755 shares in the ratio of 1 Yuan per share.; 84,501,000 governing shares held by workers and staffs.

In preparation for overseas listing of the company, Kelon had absorbed and merged with Guangdong Rongsheng Refrigerators Co., Ltd, which was the joint venture invested by Kelon and foreign investors. The original foreign investors from Rongsheng Co. would hold 181,639,808 H shares in the conversion ratio of 1.75 Yuan per share.

Jul. 1996, after the approval by China Securities Regulatory Commission word [1996] No.20, the company had issue 201,352,000 H shares successful in the price of 6.67 HKD per share. With the approval of the Hong Kong Stock Exchange, the H shares issued in May 1996, as well as additional H shares are qualified listed on the Stock Exchange of Hong Kong.

July 19997, in accordance with the shareholders and the relevant department, the company had added 76,598,000 H shares in the price of 9.2 HKD per share. After that, the total capitalization of the company had increased to 882,006,563 shares.

After the approval by China Securities Regulatory Commission word [1999] No.58, the company launched 935 million public shares, totally 110,000,000 shares with the par value 1 Yuan and the issue price was 9.98 Yuan. After that, the total capitalization of the company was 992,007,000 shares.

Address: No.8 Ronggang Road, Rongqi Town, Shunde, Guangdong
Zip-code: 528303