Bottoming out overseas assets? Hisense home appliances or the controlling shareholder of Chengsan electric holdings co., Ltd

Hisense Home Appliances issued an announcement on the subscription of private placement shares of Sanden Holdings Co., Ltd.

On March 1, 2021, Hisense Home Appliance Group Co., Ltd. (hereinafter referred to as "the Company") and Sanden Holdings Co., Ltd. (hereinafter referred to as "Sanden Holdings") jointly signed the Share Purchase Agreement (hereinafter referred to as the "Share Purchase Agreement"), and the Company intends to subscribe for the private placement of shares of Sanden Holdings. Sanden Holdings is the world's leading supplier of automotive air-conditioning compressors and automotive air-conditioning systems, due to the tight capital chain caused by the global spread of the new crown epidemic and other unfavorable factors, in order to seek business turnaround, the business regeneration ADR procedure (refers to the specific enterprise revitalization plan procedure applied by Japanese companies to the Japan Business Regeneration Professional Association in accordance with Japanese laws and regulations), through the public process to select investors, through the private issuance of additional shares to investors, to the financial institution creditors involved in the ADR process (hereinafter referred to as "hereinafter referred to as" ADR creditors") apply for debt (hereinafter referred to as "ADR debt") and use the investor to provide joint and several liability guarantees to obtain operating and development funds, stabilize the continuing operation of the enterprise and improve the current financial situation, and use the industrial synergy and complementarity of the investor to enhance the profitability of the enterprise and achieve fundamental reform.

Pursuant to the Share Purchase Agreement signed by the parties, the Company intends to subscribe for 83,627,000 shares of the private placement of Sanden Holdings at a price of JPY 256 per share on the Delivery Date, provided that the General Meeting of Creditors of Sanden Holdings ADR approves the business regeneration plan of Sanden Holdings, which includes the discharge of ADR debts, etc., The total subscription price was approximately JPY 21,409 million (RMB1,302 million), and the Company provided joint and several liability guarantees for the remaining ADR debt of Sanden Holdings after deducting the above-mentioned approved debt forgiveness. Sandy Holdings' business regeneration plan includes Sanden Holdings' business plan for the next five years, the amount of ADR debt forgiveness, the repayment plan for the remaining ADR debt, and the Company's guarantee obligations for the remaining ADR debt of Sanden Holdings. After the approval of the ADR creditors' meeting of Sanden Holdings to be held at the end of April 2021, the Company will issue a timely announcement on the progress of the transaction.

After the completion of the transaction, the Company will hold approximately 75% of the voting rights of Sanden Holdings and become the controlling shareholder of Sanden Holdings.