Financial Service Agreement Signed

At the 21st Meeting of the 6th Board of Directors, held on 31 Jul 2008, a proposal was examined and approved to sign a financial service agreement with Hisense Group Financial Co., Ltd. ( with registered capital of RMB 300 mln). Pursuant to the agreement, the company plans to, during a one-year validity period, deposit up to RMB 500 mln in funds, apply for up to RMB 1 bln in loans and pay for services valued at up to RMB 25 mln for discount billing.

As Hisense Group Co., Ltd. indirectly holds a 23.63% stake in the company, and a 85% stake in Hisense Financial through Qingdao Hisense Air-condition Co., Ltd, the transaction constitutes a related-party transaction. The transaction proposal must be submitted to the meeting of shareholders for examination and consideration for approval.

Board of Directors
31 Jul 2008


Source: Securities Times

Date: 1 Aug 2008

CN01/VW/SW/BT/KM