Hisense Home Appliances Group Announces RMB1.72 Billion Subscription in Wealth Management Products

Key Highlights

• Discloseable Transaction: Hisense Home Appliances Group Co., Ltd. (“Hisense” or “the Company”) and its subsidiaries have entered into a series of wealth management product subscriptions with Alltrust Insurance Asset Management Co., Ltd. (“Alltrust Insurance”) amounting to RMB1.72 billion between 27 November 2025 and 22 April 2026.
• Aggregate Investment: The investments utilize idle self-owned funds, approved under a board mandate for up to RMB23 billion to be deployed in short-term, medium-to-low risk wealth management products.
• Implication Under Listing Rules: While each individual agreement is not discloseable on its own, the aggregated amount exceeds 5% (but below 25%) of the applicable percentage ratios under the Hong Kong Listing Rules, thus requiring reporting and announcement.
• Product Details: The wealth management products are low-risk, fixed-income instruments benchmarked to the People’s Bank of China one-year deposit rate and invest in liquid and fixed-income assets.
• Rationale: The move aims to enhance capital utilization efficiency and increase returns on the Company’s cash assets, without affecting its principal business operations or the interests of small and medium shareholders.
• Counterparty Independence: Alltrust Insurance and its ultimate beneficial owners are independent third parties to Hisense and its connected persons.

Details Investors Need to Know

The Board of Hisense approved the use of idle self-owned funds, up to RMB23 billion, for entrusted wealth management through a range of financial institutions. This large-scale allocation of idle funds into wealth management products reflects the Company’s active approach to optimize liquidity and generate low-risk returns for shareholders.

Between 27 November 2025 and 22 April 2026, the Company and subsidiaries (including Gorenje Company, Hisense Mould Company, Kelon Mould Company, Kitchen and Bath Company, Refrigerator Marketing Company, and Ronshen Plastic Company) entered into 18 separate wealth management agreements with Alltrust Insurance, subscribing to the “Alltrust Insurance Asset Yongying Anxiang No.1 Asset Management Product” in varying amounts, from RMB10 million to RMB270 million per agreement.

Key product features:

• Type: Fixed income
• Risk profile: Low risk
• Expected return: Benchmarked to the People’s Bank of China one-year deposit rate (before tax)
• Investment scope: Liquid assets and fixed-income assets
• Redemption: Subject to the subscriber’s timing

The Company has emphasized that the use of idle funds for these investments is compliant with its internal “Management Measures for Conducting Entrusted Wealth Management Transactions” and will not impact its ongoing business or cash flow for principal activities.

Why This Matters for Shareholders:

• The size and frequency of these investments (RMB1.72 billion in aggregate) signal a proactive stance on capital efficiency, which could enhance non-operating income and potentially support share value if returns are realized as expected.
• As this is a discloseable event under the Hong Kong Listing Rules, it may attract increased scrutiny from investors and analysts, potentially influencing market perception and share price.
• The investments are considered low risk and are not expected to expose the Company to significant capital loss, which should reassure risk-averse shareholders.
• There is no indication that these transactions will impact the Company’s core manufacturing and sales operations for household appliances and related products.

About the Parties

• Hisense Home Appliances Group: A leading developer, manufacturer, and marketer of electrical appliances, including refrigerators, air conditioners, washing machines, kitchen appliances, and automotive thermal management systems.
• Alltrust Insurance Asset Management: A subsidiary of Alltrust Insurance Company Limited, a PRC-based and NEEQ-listed insurance group, majority owned by state-controlled China Huaneng Group via Huaneng Capital.
• Subsidiaries Involved: Gorenje Company, Hisense Mould Company, Kelon Mould Company, Kitchen and Bath Company, Refrigerator Marketing Company, and Ronshen Plastic Company—all engaged in appliance manufacturing, mould design, kitchen and bath systems, plastic products, and sales/after-sales services.

Potential Market Impact

While the products are low-risk and designed for capital efficiency, the scale of the commitment and the Company’s ability to generate additional returns from otherwise idle funds could be viewed positively by the market. However, investors should note that these are not operational profits and returns may vary with changes in market interest rates.

The transparent disclosure of these investments, compliance with Listing Rules, and the declaration of independence from Alltrust Insurance all contribute to corporate governance standards—another factor that may support investor confidence.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should consider their own circumstances and seek professional guidance before making investment decisions. While every effort has been made to ensure accuracy, the Company’s future performance may be affected by market, regulatory, and operational risks not covered in this summary.

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