Konka Group Co., Ltd. Annual Report 2021
KONKA GROUP CO., LTD.
ANNUAL REPORT 2021
2022-22
March 2022
1
Konka Group Co., Ltd. Annual Report 2021
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Konka Group Co., Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the factuality, accuracy and completeness of the contents of
this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Zhou Bin, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Guo Zhihua, the head of the Company’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Board has approved a final dividend plan as follows: based on the 2,407,945,408 shares, a
cash dividend of RMB0.50 (tax inclusive) per 10 shares is to be distributed to the shareholders,
with no bonus issue from either profit or capital reserves.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Konka Group Co., Ltd. Annual Report 2021
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information..................................................11
Part III Management Discussion and Analysis..............................................................................17
Part IV Corporate Governance.......................................................................................................49
Part V Environmental and Social Responsibility.......................................................................... 76
Part VI Significant Events............................................................................................................... 88
Part VII Share Changes and Shareholder Information..............................................................119
Part VIII Preferred Shares............................................................................................................ 126
Part IX Corporate Bonds...............................................................................................................127
Part X Financial Statements..........................................................................................................134
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Konka Group Co., Ltd. Annual Report 2021
Documents Available for Reference
1. The financial statements with the signatures and seals of the Company’s legal representative,
Chief Financial Officer and head of the financial department;
2. The original copy of the Independent Auditor’s Report with the seal of the CPA firm and the
signatures & seals of the certified public accountants;
3. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period;
4. This Report and its summary with the signature of the Company’s legal representative and the
seal of the Company; and
5. Other relevant materials.
4
Konka Group Co., Ltd. Annual Report 2021
Definitions
Term Definition
The “Company”, the “Group”, “Konka Group” or Konka Group Co., Ltd. and its consolidated subsidiaries, except where the
“we” context otherwise requires
Electronics Technology Shenzhen Konka Electronics Technology Co., Ltd.
Anhui Zhilian Anhui Konka Zhilian E-Commerce Co., Ltd.
Haimen Konka Haimen Konka Smart Technology Co., Ltd.
Chengdu Konka Smart Chengdu Konka Smart Technology Co., Ltd.
Chengdu Konka Electronic Chengdu Konka Electronic Co., Ltd.
Nantong Hongdin Nantong Hongdin Smart Technology Co., Ltd.
Youzhihui Shenzhen Youzhihui Technology Co., Ltd.
Xiaojia Technology Xiaojia Technology Co., Ltd.
Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co., Ltd.
Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co., Ltd.
Nanjing Konka Nanjing Konka Electronics Co., Ltd.
Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co., Ltd.
Xi'an Huasheng Xi'an Huasheng Jiacheng Real Estate Co., Ltd.
XingDa HongYe GuangDong XingDa HongYe Electronic Co., Ltd.
Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB Co., Ltd.
Konka Circuit Shenzhen Konka Circuit Co., Ltd.
Konka Flexible Electronic Suining Konka Flexible Electronic Technology Co., Ltd.
Konka Hongye Electronics Suining Konka Hongye Electronics Co., Ltd.
Boluo Precision Boluo Konka Precision Technology Co., Ltd.
Boluo Konka Boluo Konka PCB Co., Ltd.
Xiamen Dalong Xiamen Dalong Trading Co., Ltd.
Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co., Ltd.
Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co., Ltd.
Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co., Ltd.
Frestec Refrigeration Henan Frestec Refrigeration Appliance Co., Ltd.
Frestec Electrical Appliances Henan Frestec Electrical Appliances Co., Ltd.
Frestec Household Appliances Henan Frestec Household Appliances Co., Ltd.
Frestec Smart Home Henan Frestec Smart Home Technology Co., Ltd.
Konka Investment Shenzhen Konka Investment Holdings Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2021
Yibin Konka Technology Park Yibin Konka Technology Park Operation Co., Ltd.
Konka Capital Shenzhen Konka Capital Equity Investment Management Co., Ltd.
Industrial Park Development Shenzhen Konka Industrial Park Development Co., Ltd.
Konka Suiyong Konka Suiyong Investment (Shenzhen) Co., Ltd.
Kangquan Enterprise Shenzhen Kangquan Enterprise Management Consulting Co., Ltd.
Konka Suyuan Shenzhen Konka Suyuan Investment Industrial Co., Ltd.
Shengxing Industrial Shenzhen Konka Shengxing Industrial Co., Ltd.
Zhitong Technology Shenzhen Konka Zhitong Technology Co., Ltd.
Konka Factoring Konka Factoring (Shenzhen) Co., Ltd.
Beijing Konka Electronic Beijing Konka Electronic Co., Ltd.
Konka Leasing Konka Financial Leasing (Tianjin) Co., Ltd.
Suining Konka Industrial Park Suining Konka Industrial Park Development Co., Ltd.
Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co., Ltd.
Shanghai Konka Shanghai Konka Industrial Co., Ltd.
Yantai Kangjin Yantai Kangjin Technology Development Co., Ltd.
Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co., Ltd.
Sichuan Konka Sichuan Konka Smart Terminal Technology Co., Ltd
Yibin Smart Yibin Konka Smart Technology Co., Ltd.
Shenzhen KONSEMI Shenzhen KONSEMI Co., Ltd.
Chongqing Konka Chongqing Konka Technology Development Co., Ltd.
Hefei KONSEMI Hefei KONSEMI Storage Technology Co., Ltd.
Yihe Electronic Hefei Yihe Electronic Co., Ltd.
Shenzhen Kanghuijia Technology Shenzhen Kanghuijia Technology Co., Ltd.
Chongqing Huiying Technology Chongqing Konka Huiying Technology Co., Ltd.
Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co., Limited
Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co., Limited
Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd.
Industrial and Trade Technology Konka Industrial and Trade Technology (Shenzhen) Co., Ltd.
Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co., Ltd.
Konka Huazhong Konka Huazhong (Hunan) Technology Co., Ltd.
Wankaida Shenzhen Wankaida Science and Technology Co., Ltd.
Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Suining Jiarun Property Suining Jiarun Property Co., Ltd.
Konka Electrical Appliances Shenzhen Konka Electrical Appliances Co., Ltd.
E2info Shenzhen E2info Network Technology Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2021
E2info (Hainan) E2info (Hainan) Network Technology Co., Ltd.
Anhui Konka Anhui Konka Electronic Co., Ltd.
Kangzhi Trade Anhui Kangzhi Trade Co., Ltd.
Telecommunication Technology Shenzhen Konka Telecommunications Technology Co., Ltd.
Konka Mobility Konka Mobility Co., Limited
Dongguan Kangjia Dongguan Kangjia New Materials Technology Co., Ltd..
Dongguan Konka Dongguan Konka Electronic Co., Ltd.
Suining Konka Smart Suining Konka Smart Technology Co., Ltd.
Chongqing Optoelectronic Technology Research
Chongqing Konka Optoelectronic Technology Research Institute Co., Ltd.
Institute
Yibin Kangrun Yibin Kangrun Environmental Technology Co., Ltd.
Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd.
Yibin Kangrun Environmental Protection Yibin Kangrun Environmental Protection Power Generation Co., Ltd.
Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co., Ltd.
Jiangxi Konka Jiangxi Konka New Material Technology Co., Ltd.
Jiangxi High Transparent Substrate (formerly Jiangxi High Transparent Substrate Material Technology Co., Ltd. (formerly
known as “Nano-Grystallized Glass”) known as “Jiangxi Golden Phoenix Nano-Grystallized Glass Co., Ltd.”)
Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co., Ltd.
Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co., Ltd.
Konka Huanjia Konka Huanjia Environmental Technology Co., Ltd.
Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co., Ltd.
Econ Technology Shandong Econ Technology Co., Ltd.
Econ Environmental Engineering Econ Environmental Engineering Co., Ltd.
Beijing Econ Beijing Econ Runfeng Technology Co., Ltd.
Binzhou Econ Zhongke Binzhou Econ Zhongke Environmental Technology Co., Ltd.
Dayi Kangrun Water Dayi Kangrun Water Co., Ltd.
Tingyuan Environmental Tingyuan Environmental Technology (Shanghai) Co., Ltd.
Shanghai Jiyi Shanghai Jiyi Environmental Technology Co., Ltd.
Kangrunhong Environmental Kangrunhong Environmental Technology (Yantai) Co., Ltd.
Donggang Kangrun Donggang Kangrun Environmental Management Co., Ltd.
Gaoping Kangrun Gaoping Kangrun Environmental Protection & Water Co., Ltd.
Xi’an Kangrun Xi’an Gaoling Kangrun Environmental Engineering Co., Ltd.
Changning Kangrun Changning Kangrun Water Co., Ltd.
Lushan Kangrun Environmental Lushan Kangrun Environmental Management Co., Ltd.
Tongchuan Kangrun Honghui Tongchuan Kangrun Honghui Environmental Management Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2021
Rushan Econ Rushan Econ Water Environment Management Co., Ltd.
Mengcheng Kangrun Mengcheng Kangrun Anjian Water Co., Ltd.
Chongzhou Kangrun Chongzhou Kangrun Environment Co., Ltd.
Suining Pengxi Kangrun Suining Pengxi Kangrun Environmental Management Co., Ltd.
Funan Kangrun Water Funan Kangrun Water Co., Ltd.
Subei Kangrun Water Subei Mongol Autonomous County Kangrun Water Co., Ltd.
Linfen Kangrun Linfen Kangrun Jinze Water Supply Co., Ltd.
Wuhan Runyuan Wastewater Wuhan Runyuan Wastewater Treatment Co., Ltd.
Binzhou Weiyijie Binzhou Weiyijie Environmental Technology Co., Ltd.
Binzhou Beihai Jingmai Binzhou Beihai Jingmai Industrial Development Co., Ltd.
Chunzhiran Yantai Chunzhiran Environmental Technology Co., Ltd.
Lairun Holding Laizhou Lairun Holding Co., Ltd.
Binhai Wastewater Laizhou Binhai Wastewater Treatment Co., Ltd.
Lairun Environmental Protection Laizhou Lairun Environmental Protection Co., Ltd.
Lairun Wastewater Laizhou Lairun Wastewater Treatment Co., Ltd.
Weifang Sihai Kangrun Weifang Sihai Kangrun Investment Operation Co., Ltd.
Xixian Kangrun Xixian Kangrun Xijian Water Environment Development Co., Ltd.
Ankang Kangrun Ankang Kangrun Xinheng Water Environment Co., Ltd.
Bokang Renewable Bokang Renewable Resources (Yantai) Co., Ltd.
Kangruncheng Environmental Technology Kangruncheng Environmental Technology (Yantai) Co., Ltd.
Shaanxi Konka Intelligent Shaanxi Konka Intelligent Appliance Co., Ltd.
Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co., Ltd.
Jiaxin Technology Jiaxin Technology Co., Ltd.
Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd.
Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co., Ltd.
Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd.
Chongqing Kanglei Optoelectronic Chongqing Kanglei Optoelectronic Technology Co., Ltd.
Henan Kangxin Property Henan Kangxin Property Co., Ltd.
Konka Unifortune Shenzhen Konka Unifortune Technology Co., Ltd.
Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co., Ltd.
Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co., Ltd.
Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co., Ltd.
Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2021
Yantai Laikang Yantai Laikang Industrial Development Co., Ltd.
Konka Material Hainan Konka Material Technology Co., Ltd.
Konka Ventures Konka Ventures Development (Shenzhen) Co., Ltd.
Yibin Konka Incubator Yibin Konka Incubator Management Co., Ltd.
Yantai Konka Yantai Konka Healthcare Enterprise Service Co., Ltd.
Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co., Ltd.
Konka Enterprise Service Guiyang Konka Enterprise Service Co., Ltd.
Chuanghui Smart Nanjing Chuanghui Smart Technology Co., Ltd.
Konka Eco-Development Shenzhen Konka Eco-Development Investment Co., Ltd.
Shenzhen Kangxin Property Shenzhen Kangxin Property Co., Ltd.
Henan Kanghan Property Henan Kanghan Property Co., Ltd.
Konka Europe Konka (Europe) Co., Ltd.
Hong Kong Konka Hong Kong Konka Limited
Kangxin Semiconductor Kangxin Semiconductor (Yantai) Co., Ltd.
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
Kanghao Technology Kanghao Technology Co., Ltd.
Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co., Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies (Shenzhen) Co., Limited
(Shenzhen)
Hefei Chain Kingdom Memory Technologies Hefei Chain Kingdom Memory Technologies Co., Limited
KK Smartech KK Smartech Limited
Hongjet Hongjet (Hong Kong) Company Limited
Yantai Kangyun Yantai Kangyun Industrial Development Co., Ltd.
Yantai Kangyun Property Yantai Kangyun Property Development Co., Ltd.
Xi'an Feihe Xi'an Feihe Real Estate Development Co., Ltd.
Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co., Ltd.
Jiangxi Konka Industrial Park Jiangxi Konka Industrial Park Development Co. Ltd.
Ruichang Kangrui Real Estate Ruichang Kangrui Real Estate Co., Ltd.
Industrial development in Wuhan Konka Industrial Development (Wuhan) Co., Ltd.
Kangxiaojia Digital Shenzhen Kangxiaojia Digital Information Technology Co., Ltd.
Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Yijiakang Smart Terminal Shenzhen Yijiakang Smart Terminal Technology Co., Ltd.
Chongqing E2info E2info (Chongqing) Network Technology Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2021
Lanrun Environmental Protection Lanrun Environment Protection Technology (Yantai) Co., Ltd.
Guizhou Kangkai Material Technology Guizhou Kangkai Material Technology Co., Ltd.
Guizhou Konka New Material Technology Guizhou Konka New Material Technology Co., Ltd.
Guizhou Kanggui Energy Guizhou Kanggui Energy Co., Ltd.
Guangdong Xinwei Guangdong Xinwei Semiconductor Co., Ltd.
Kangxinrun Renewable Resources Chongqing Kangxingrui Renewable Resources Co., Ltd.
Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co., Ltd.
Sichun Chengrui Sichuan Chengrui Real Estate Co., Ltd.
Chongqing Jiarun Chongqing Jiarun Real Estate Co., Ltd.
Nantong Kanghai Nantong Kanghai Technology Industry Development Co., Ltd.
Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co., Ltd.
CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission
Expressed in the Chinese currency of RMB, expressed in tens of thousands of
RMB, RMB’0,000, RMB’00,000,000
RMB, expressed in hundreds of millions of RMB
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Konka Group Co., Ltd. Annual Report 2021
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbr. 康佳集团
Company name in English (if any) KONKA GROUP CO.,LTD
Abbr. (if any) KONKA GROUP
Legal representative Zhou Bin
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Registered address
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
On 1 July 2015, due to the relocation of the Company Headquarters, the registered
address has changed from OCT, Nanshan District, Shenzhen, Guangdong Province, China
Past changes of registered address
to 15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology
Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China.
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Office address
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
Company website www.konka.com
Email address szkonka@konka.com
II Contact Information
Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, 28 Board Secretariat, 24/F, Konka R&D Center, 28
Keji South Twelfth Road, Science and Technology Keji South Twelfth Road, Science and Technology
Address
Park, Yuehai Street, Nanshan District, Shenzhen, Park, Yuehai Street, Nanshan District, Shenzhen,
Guangdong Province, China Guangdong Province, China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
Email address szkonka@konka.com szkonka@konka.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Securities Times, etc.
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Konka Group Co., Ltd. Annual Report 2021
Report is disclosed
Media and website where this Report is
http://www.cninfo.com.cn/new/index
disclosed
Board Secretariat, 24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science
Place where this Report is lodged and Technology Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong
Province, China
IV Change to Company Registered Information
Unified social credit code 914403006188155783
Change to principal activity of the Company
No change
since going public (if any)
Every change of controlling shareholder since
No change
incorporation (if any)
V Other Information
The independent audit firm hired by the Company:
Name Shinewing Certified Public Accountants LLP
9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street, Dongcheng District,
Office address
Beijing, China
Accountants writing signatures Tang Qimei and Liu Jianhua
The independent sponsor hired by the Company to exercise constant supervision over the Company
in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
2021-over-2
2021 2020 020 change 2019
(%)
Operating revenue (RMB) 49,106,513,669.58 50,351,836,554.87 -2.47% 55,119,125,478.72
Net profit attributable to the listed
905,352,997.68 477,633,250.14 89.55% 212,034,210.08
company’s shareholders (RMB)
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Konka Group Co., Ltd. Annual Report 2021
Net profit attributable to the listed
company’s shareholders before -3,250,798,107.49 -2,367,590,806.95 -37.30% -1,875,722,546.18
exceptional gains and losses (RMB)
Net cash generated from/used in
808,756,394.11 178,616,528.21 352.79% -1,543,947,284.59
operating activities (RMB)
Basic earnings per share
0.3760 0.1984 89.52% 0.0881
(RMB/share)
Diluted earnings per share
0.3760 0.1984 89.52% 0.0881
(RMB/share)
Weighted average return on equity
10.33% 5.79% 4.54% 2.62%
(%)
Change of
31
December
31 December 2021 31 December 2020 2021 over 31 December 2019
31
December
2020 (%)
Total assets (RMB) 39,874,520,771.26 49,876,267,493.61 -20.05% 42,586,955,452.27
Equity attributable to the listed
9,095,278,436.41 8,428,640,176.97 7.91% 8,068,505,598.13
company’s shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative for the last three accounting
years, and the latest independent auditor’s report indicated that there was uncertainty about the
Company’s ability to continue as a going concern.
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative.
√ Yes □ No
Item 2021 2020 Note
Operating revenue (RMB) 49,106,513,669.58 50,351,836,554.87
579,266,272.20 445,172,864.05 Scrap sales revenue, utilities
revenue, lease revenue,
Deductions from operating
material sales revenue and
revenue (RMB)
other revenue irrelevant to the
principal operations
Operating revenue net of 48,527,247,397.38 49,906,663,690.82
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Konka Group Co., Ltd. Annual Report 2021
deductions (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 9,822,169,119.30 11,987,992,753.78 9,816,584,505.55 17,479,767,290.95
Net profit attributable to the
72,822,573.66 12,627,345.91 -211,828,259.25 1,031,731,337.36
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders
-389,266,066.84 -320,858,571.01 -343,893,316.75 -2,196,780,152.89
before exceptional gains and
losses
Net cash generated from/used in
-529,240,793.59 -755,520,428.44 -157,473,161.06 2,250,990,777.20
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or interim
reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2021 2020 2019 Note
Gain or loss on disposal of non-current 4,047,094,117.70 2,431,648,255.26 1,202,401,420.41
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Konka Group Co., Ltd. Annual Report 2021
assets (inclusive of impairment allowance
write-offs)
Government subsidies charged to current
profit or loss (exclusive of government
subsidies consistently given in the
1,352,377,548.16 908,546,202.24 1,204,519,346.40
Company’s ordinary course of business at
fixed quotas or amounts as per governmental
policies or standards)
Gain or loss on assets entrusted to other
18,476,648.12 71,541,978.85
entities for investment or management
Gain or loss on debt restructuring 19,777.25 1,127,066.94 14,515,006.57
Gain or loss on fair-value changes in
held-for-trading financial assets and
liabilities & income from disposal of
held-for-trading financial assets and
67,789,442.65 96,316,772.78 49,472,415.17
liabilities and available-for-sale financial
assets (exclusive of the effective portion of
hedges that arise in the Company’s ordinary
course of business)
Gain or loss on loan entrustments 80,625,356.41 64,616,181.90 1,992,676.20
Non-operating income and expense other
48,615,769.37 54,271,037.60 121,189,478.51
than the above
Other gains and losses that meet the
-1,907,936.23 1,081,111.64 145,586,810.18
definition of exceptional gain/loss
Less: Income tax effects 1,190,629,946.56 544,211,364.67 545,067,993.60
Non-controlling interests effects (net of tax) 247,833,023.58 186,647,854.72 178,394,382.43
Total 4,156,151,105.17 2,845,224,057.09 2,087,756,756.26 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
Tax 12,585,857.26 Government subsidies given in the Company’s ordinary course of business at fixed
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Konka Group Co., Ltd. Annual Report 2021
rebates on quotas or amounts as per government’s uniform standards
software
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Konka Group Co., Ltd. Annual Report 2021
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
At present, the core businesses of the Company include consumer electronics, industry trade,
semiconductors and environmental protection. Among them, for the industry trade business, the
Company carries out the procurement, processing and distribution of related materials around the
upstream and downstream of the consumer electronics business, thus it can be categorized to the
consumer electronics industry or semiconductor business. Therefore, the industries in which the
Company operates during the Reporting Period are consumer electronics industry, semiconductor
industry and environmental protection industry. The relevant information is as follows:
(I) Consumer electronics industry
In the color TV industry, with the gradual fading of demographic dividends and real estate
dividends, since 2016, the competition in China's color TV industry has shifted from the
incremental market to the stock market. In 2021, affected by factors such as increasingly fierce
market competition, sharp fluctuations in raw material prices, and sluggish domestic consumption,
the gross profit level of the color TV industry continued to be diluted. According to statistics from
All View Cloud (AVC for short), the retail sales volume in China's color TV market in 2021 was
38.35 million units, declining by 13.8% YoY, and the retail sales value was RMB128.9 billion,
increasing by 6.6% YoY. In the future, as technologies such as Internet of Things (IoT), big data,
cloud computing, artificial intelligence, etc. promote the upgrade of the intelligentialization of
various electronic products, as well as the iterative update of future display technologies such as
Micro LED, the scale of the color TV industry is expected to grow.
On the side of the white goods industry, at present, the inventory of white goods in urban
households in China is basically saturated. Traditional white goods such as air conditioners,
refrigerators, washing machines, freezers, etc. have gradually started transforming from low-end
products to mid-to-high-end products. The white goods industry showed distinct trend of
consumption upgrade. In terms of the air-conditioning industry, statistics from AVC showed that the
retail sales volume of China's air-conditioning market was 46.89 million units in 2021, decreasing
by 8.7% YoY, and the retail sales value was RMB152.7 billion, decreasing by 1.2% YoY. As the
need for replacement at the consumer side recovers, the air-conditioning industry is expected to
maintain a steady growth trend in the future. In the refrigerator industry, statistics from AVC
showed that the retail sales volume in China's refrigerator market in 2021 was 31.88 million units,
decreasing by 2.1% YoY, and the retail sales value was RMB97.1 billion, increasing by 7.9% YoY.
As people are paying more attention to health, food preservation and promoting the trend of
upgrading their quality of life, the future refrigerator market will be mainly characterized by steady
17
Konka Group Co., Ltd. Annual Report 2021
development and product upgrades. In respect of the washing machine industry, statistics from AVC
showed that the retail sales volume in China's washing machine market in 2021 was 37.18 million
units, increasing by 0.8% YoY, and the retail sales value was RMB76.6 billion, increasing by 7.3%
YoY. Offline channels of the washing machine market, which was greatly affected by the pandemic,
have been recovering gradually, and the overall market uncertainty is decreasing.
(II) Semiconductor industry
The semiconductor industry is a strategic, fundamental and leading industry that supports economic
and social development and safeguards national security. Driven by the development of 5G,
artificial intelligence, the IoT, and intelligentialization, the semiconductor industry is expected to
usher in a new wave of growth cycles. Among them, semiconductor storage is the largest
subdivision in the semiconductor industry in recent years. At present, South Korean companies
represented by Samsung and Hynix are in the leading position in the field of semiconductor storage.
China has also accelerated in boosting the production capacity of semiconductor storage in recent
years. It is expected that the self-sufficiency rate will continue to increase.
Micro LED is the prevailing trend and development direction of future display technology. The
industrial chain is divided into four main links: the upstream chip manufacturing, mass transfer, the
midstream panel manufacturing, and the downstream complete machine application. The Micro
LED has wide industrial application and a broad market.
(III) Environmental protection industry
With the introduction of a series of favorable policies to encourage the recycling and utilization of
renewable resources and the continuous strengthening of environmental protection inspections, the
total amount and the total value of recycled resources in China have shown rapid growth. It is
expected that the industry will continue to develop to a good prospect in the future, and the
development scale of the renewable resource recycling industry will continue to grow steadily.
II Principal Activity of the Company in the Reporting Period
(I) The Consumer Electronic Division
This division primarily comprises the multimedia sub-division and the white goods sub-division,
with details as follows:
1. The Multimedia Sub-Division
The company's multimedia business faces the global market, mainly including domestic color TV
business and export color TV business.
The domestic sales of the Company’s colour TVs are realized mainly through B2B
(Business-to-Business) and B2C (Business-to-Consumer), with its branch companies, business
departments and after-sales maintenance points operating across the country. And the Company
profits from the margins between the costs and the selling prices of its colour TVs.
18
Konka Group Co., Ltd. Annual Report 2021
As for selling its colour TVs abroad, the Company mainly relies on B2B. Its colour TVs are sold to
Asia Pacific, Middle East, Central & South America, East Europe, etc. And operating profit source
is also the differences between the costs and the selling prices of its colour TVs.
2. The White Goods Sub-Division
The white goods produced by the Company mainly include refrigerators, washing machines, air
conditioners, freezers, etc., which are sold through B2B and B2C mainly to the domestic market.
And the Company profits from the margins between the costs and the selling prices of its white
goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. Meanwhile, the establishment of the Ningbo A/C production base as a joint
venture has helped the Company build its own A/C manufacturing capability. The weakness in the
front-loading washing machine technology has been overcome by the acquisition of Beko
(Front-loading Washing Machine) China Factory. In addition, the Company went on a new path of
exploring the dishwasher world by setting up Xi’an Smart Appliances Park. The Company also
optimized the internal R&D, production, procurement, sales, and services processes, integrated the
external channel resources to enable channel sharing between the upstream procurement processes
and downstream sales processes, and improved the product sales structure and competitiveness of
the white goods business.
(II) The Industry Trade Business
The company's industry and trade business mainly focuses on the procurement, processing and
distribution of IC chip storage, LCD and other materials involved in the company's traditional main
business. The operating profit comes from the processing fee and the price difference between
upstream procurement and downstream sales.
The industry trade business can help the Company establish good relationships with its upstream su
ppliers and downstream customers, and keep it informed of prices of the materials used in its produ
ction for better cost control over its existing products. Additionally, it is able to facilitate the
development of the semiconductor business by helping accumulate customer resources for the
semiconductor and chip business, provide sales channels, and achieve accurate matching of market
demand, with a shortened product development period and a lower risk of mismatching of R&D and
market demand.
(III) The Environmental Protection Division
Currently, this business focuses on recycling of renewable resources and the new material of glass
ceramic. Renewable resources are collected, sorted, processed, distributed and sold.
(IV) The Semi-Conductor Division
Currently, the Company is engaged in storage, optoelectronics, etc. with respect to the
semi-conductor business. In storage, the Company primarily designs and markets master storage
chips, and engage in packaging and testing of storage products. In optoelectronics, the Company
19
Konka Group Co., Ltd. Annual Report 2021
primarily develops Micro LED-related products.
III Core Competitiveness Analysis
The Company’s core competitiveness lies in its R&D ability, brand, marketing network and human
resources. It has developed an R&D system of “Konka Research Institute-secondary Group/division
research centers-technology application centers”, established artificial intelligence internet of things
comprehensive laboratory and 5G Ultra HD laboratory with major universities or scientific research
institutions, established academician workstation, and built a technology research alliance matching
the industrial layout, with nearly 100 core technologies and about 1,500 R&D talents. The
Company has introduced around 100 experts on two projects of micro LED and memory master
chip. In terms of brand, the Company continues to promote brand strategy construction, system
construction, image construction and cultural construction, focuses on improving the scientific and
international image of the enterprise, strengthens the brand status, has a certain brand awareness and
reputation in the consumer group, and has good brand credit in banks and other financing channels.
In terms of marketing channels, the Company innovates channel reform, cooperates online and
offline for win-win results, and strives for development at home and abroad. Regarding offline
channels, the Company has more than 40 branches, more than 200 offices, more than 3,000
after-sales service stores across China, and the marketing and service network is all over the country;
as for online channels, the Company has settled in Tmall, JD, Suning, VIPshop and other
mainstream e-commerce platforms to innovate and develop live e-commerce business, and seek a
new growth pole for business development; overseas channel, the company The Company's
business covers Latin America, Europe, Asia Pacific and other countries and regions, with a sound
marketing network. In terms of human resources, the Company boasts a leadership team of many
years of management and industry experience, as well as a high quality execution team.
IV Core Business Analysis
1. Overview
In 2021, the Company adhered to the development strategy of “Technology + Business + Industrial
Parks”, closely centered on the mainline of “Semiconductor Technology+ New Consumer
Electronics + New Energy”, continuously accelerated the transformation and upgrading of
traditional business and the layout of strategic emerging businesses, and steadily promoted the
Company's transformation from "Konka Electronic" to "Konka Technology".
For 2021, the Company recorded operating revenue of RMB49.107 billion. Net profit attributable to
the Company as the parent stood at RMB905 million, representing a year-on-year rise of 89.55%.
What the Company has accomplished in 2021 is summarized as follows:
20
Konka Group Co., Ltd. Annual Report 2021
(1) Maintained strategic strength and reshaped the business structure
In 2021, the Company firmly implemented the development strategy of “Technology + Business +
Industrial Parks” and closely centered on the three leading businesses of “Semiconductor
Technology+ New Consumer Electronics + New Energy” and the two supporting businesses of
"high-tech parks + investment", pointing out the direction for the Company to achieve leading
technology, industrial expansion and leapfrog development during the 14th Five-Year Plan.
(2) Made breakthrough in investment business
In 2021, Chutian Dragon Co., Ltd. and Wuhan Tianyuan Environmental Protection Co., Ltd., in
which the Company has a shareholding, were successfully listed on the Shenzhen Stock Exchange.
Also, the Company completed the strategic investor introduction of yikang Technology Co., Ltd..
and Shenzhen E2info Network Technology Co., Ltd., laying the foundation for its subsequent
capitalization operation. In addition, the Company, together with its partners, has initiated the
establishment of a number of industrial funds, in a bid to establish a synergistic enabling industrial
fund system for the Company's industrial implementation and achieve better investment returns.
(3) Steadily improved operations in consumer electronics sub-division
In 2021, the Company intensified efforts to strengthen technological innovation and intelligent
manufacturing capabilities of multimedia products, actively controlled fees to reduce costs and
increase efficiency, lengthened the industrial chain, and expanded product groups. In terms of white
goods sub-division, the Company introduced the Konka Kitchen Appliance Project in Shaanxi,
forming a new industrial pattern of "Konka + Frestec" dual-brand operation and "refrigerators +
washing machines + freezers + air conditioners + kitchen appliance" full-category layout.
(4) The technology park business grew steadily
In 2021, the Company, through diversified business forms such as industrial parks, headquarters
economy, and K-Care Towns, pooled partners upstream and downstream of the industrial chain with
an open and cooperative attitude, strengthened coordination with internal and external units, and
established a park project investment expansion mode, development and construction system and
investment promotion operation path with Konka characteristics. Amid macro-control, the
Company actively responded to the challenges, overcame various difficulties, and developed and
launched projects such as Changsha Central China Headquarters Project, Xi'an Konka Smart Home
Appliances Headquarters Project, Xinfeixi Land Plot Upgrading Project, Yantai Guxian Project, and
Chongqing Bishan Project, so as to further promote the sustainable development of the technology
park sub-division.
(5) Realized technical breakthroughs in semiconductor sub-division
In 2021, the Company has continuously increased investment in research and development of the
semiconductor sub-division, made breakthroughs in chip miniaturization, mass transfer and other
technology links, independently designed and produced 15 * 30 micron level MicroLED display
21
Konka Group Co., Ltd. Annual Report 2021
chips, and developed "hybrid mass transfer technology" with a transfer yield reaching 99.9%,
providing a solid foundation for further expansion of the wearable display, vehicle display,
immersive display and other application markets for industry entry and rapid development. In 2021,
Yancheng Semiconductor Assembly & Test Base was successfully completed and put into
production.
(6) Transformed environmental protection sub-division into new energy field
In 2021, the Company actively transformed its environmental protection sub-division into the
photovoltaic field, and extended to silicon materials, silicon wafers and related photovoltaic
modules upstream of the photovoltaic glass industry chain relying on the photovoltaic glass
production line of Jiangxi Konka New Material Technology Co., Ltd., to explore new business.
(7) Optimized PCB business structure and achieved significant improvement in operating condition
In 2021, the Company adopted a range of operating measures such as cost reduction and fee control,
revenue generation and profit increase in PCB sub-division. As a result, the product structure was
greatly optimized, the sales of multi-layer circuit boards accounted for over 40%, and the operating
condition improved markedly.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2021 2020
As % of total As % of total Change (%)
Operating revenue Operating revenue
operating revenue (%) operating revenue (%)
Total 49,106,513,669.58 100% 50,351,836,554.87 100% -2.47%
By operating division
Electronics 13,873,074,181.46 28.25% 14,279,587,069.66 28.36% -2.85%
Industry trade 29,682,677,483.94 60.45% 30,483,602,365.87 60.54% -2.63%
Environmental
4,354,614,711.52 8.87% 4,823,779,902.39 9.58% -9.73%
business
Semiconductor 321,958,525.17 0.66% 282,969,230.63 0.56% 13.78%
Other 874,188,767.49 1.78% 481,897,986.32 0.96% 81.41%
By product category
Color TVs 7,300,340,878.11 14.87% 7,519,625,331.33 14.93% -2.92%
White goods 3,699,285,362.91 7.53% 3,842,051,456.02 7.63% -3.72%
Industry trade 29,682,677,483.94 60.45% 30,483,602,365.87 60.54% -2.63%
Environmental 4,354,614,711.52 8.87% 4,823,779,902.39 9.58% -9.73%
22
Konka Group Co., Ltd. Annual Report 2021
business
Semiconductor 321,958,525.17 0.66% 282,969,230.63 0.56% 13.78%
Other 3,747,636,707.93 7.63% 3,399,808,268.63 6.75% 10.23%
By operating segment
Domestic 22,033,965,598.67 44.87% 19,911,879,269.36 39.55% 10.66%
Overseas 27,072,548,070.91 55.13% 30,439,957,285.51 60.45% -11.06%
By marketing model
Direct sales 8,947,974,287.40 18.22% 8,142,993,900.81 16.17% 9.89%
Distribution 40,158,539,382.18 81.78% 42,208,842,654.06 83.83% -4.86%
(2) Operating Division, Product Category, Operating Segment or Marketing Model
Contributing over 10% of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Operating revenue Cost of sales operating revenue gross profit
margin cost of sales (%)
(%) margin (%)
By operating division
Electronics 13,873,074,181.46 12,838,911,837.79 7.45% -2.85% 0.55% -3.13%
Industry 29,682,677,483.94 29,514,534,704.12 0.57% -2.63% -2.22% -0.42%
trade
Environment 4,354,614,711.52 4,030,685,013.80 7.44% -9.73% -1.62% -7.62%
al business
By product category
Color TVs 7,300,340,878.11 6,922,606,555.81 5.17% -2.92% -0.04% -2.72%
White goods 3,699,285,362.91 3,395,382,780.50 8.22% -3.72% 2.36% -5.45%
Environment 4,354,614,711.52 4,030,685,013.80 7.44% -9.73% -1.62% -7.62%
al business
Industry 29,682,677,483.94 29,514,534,704.12 0.57% -2.63% -2.22% -0.42%
trade
By operating segment
Domestic 22,033,965,598.67 20,644,926,945.76 6.30% 10.66% 17.71% -5.62%
Overseas 27,072,548,070.91 26,756,958,035.77 1.17% -11.06% -10.98% -0.09%
By marketing model
Direct sales 8,947,974,287.40 8,128,674,428.08 9.16% 9.89% 12.44% -2.06%
23
Konka Group Co., Ltd. Annual Report 2021
Distribution 40,158,539,382.18 39,273,210,553.45 2.20% -4.86% -2.71% -2.16%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2021 2020 Change (%)
Unit sales 0,000 units 1,247 1,269 -1.73%
Electronics Output 0,000 units 1,184 1,244 -4.82%
Inventory 0,000 units 79 89 -11.24%
Any over 30% YoY movements in the data above and why:
□ Applicable √ Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By product category
Unit: RMB
2021 2020
Product
Item As % of total cost of As % of total cost of Change (%)
category Cost of sales Cost of sales
sales (%) sales (%)
Color TVs Color TVs 6,922,606,555.81 14.60% 6,925,658,808.00 14.55% -0.04%
White goods White goods 3,395,382,780.50 7.16% 3,317,107,750.97 6.97% 2.36%
Industry trade Industry trade 29,514,534,704.12 62.26% 30,183,532,940.90 63.42% -2.22%
Environmental Environmental 4,030,685,013.80 8.50% -1.62%
4,097,138,754.02 8.61%
business business
Semiconductor Semiconductor 306,296,431.81 0.65% 275,286,437.09 0.58% 11.26%
Other Other 3,232,379,495.49 6.82% 2,796,339,659.00 5.87% 15.59%
Note:
Cost of sales changed accordingly with operating revenue.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
Registered capital The Company’s Date of
Name of subsidiary Reason for change
(RMB) interest (%) change
Chongqing Kanglei Optoelectronic 50,000,000.00 51.00% 2021-4-7
De-registered
Technology Co., Ltd.
Henan Kangxin Real Estate Co., Ltd. 50,000,000.00 51.00% 2021-5-18 De-registered
24
Konka Group Co., Ltd. Annual Report 2021
Shenzhen Kangquan Enterprise Management 10,000,000.00 51.00% 2021-10-25
De-registered
Consulting Co., Ltd.
Shenzhen Konka Suyuan Investment Industrial 10,000,000.00 51.00% 2021-10-27
De-registered
Limited Company
Shenzhen Konka Industrial Park Development 100,000,000.00 51.00% 2021-10-28
De-registered
Co., Ltd.
Xiamen Dalong Trade Co., Ltd. 2,600,000.00 69.23% 2021-11-10 De-registered
Nanjing Chuanghui Smart Technology Co., 1,000,000.00 40.80% 2021-11-18
De-registered
Ltd.
Hefei Chain Kingdom Memory Technologies 5,000,000.00 51.00% 2021-11-19
De-registered
Co., Limited.
Kangxin Semiconductor (Yantai) Co., Ltd. 70,000,000.00 100.00% 2021-8-4 De-registered
Konka Kowin Memory Technology (Hong 10,000,000.00 (HKD) 100.00% 2021-2-2
Newly incorporated
Kong) Co., Limited.
Kanka Industrial and Trade Technology. 50,000,000.00 100.00% 2021-2-7 Newly incorporated
Shaanxi Konka Intelligent Appliance Co., Ltd. 120,000,000.00 51.00% 2021-3-5 Newly incorporated
Kangruncheng Environmental Technology 10,000,000.00 26.01% 2021-3-8
Newly incorporated
(Yantai) Co., Ltd.
Yibin Kangrun Medical Waste Centralized 50,000,000.00 72.73% 2021-3-26
Newly incorporated
Treatment Co., Ltd.
Suining Konka Flexible Electronic Technology 100,000,000.00 95.00% 2021-3-31
Newly incorporated
Co., Ltd.
Yibin Kangrun Environmental Protection 76,000,000.00 54.39% 2021-4-21
Newly incorporated
Power Generation Co., Ltd.
Nantong Hongdin Smart Technology Co., Ltd. 30,000,000.00 100.00% 2021-4-22 Newly incorporated
Suining Konka Hongye Electronics Co., Ltd. 100,000,000.00 90.10% 2021-5-7 Newly incorporated
Konka Huazhong (Hunan) Technology Co., 30,000,000.00 100.00% 2021-6-9
Newly incorporated
Ltd.
Kangxin Semiconductor (Yantai) Co., Ltd. 70,000,000.00 100.00% 2021-6-11 Newly incorporated
Chuzhou Konka Precision Intelligent 100,000,000.00 94.90% 2021-6-28
Newly incorporated
Manufacturing Technology Co., Ltd.
Chongqing Xinyuan Semiconductor Co., Ltd. 50,000,000.00 75.00% 2021-9-8 Newly incorporated
Jiangxi Konka Industrial Park Development 100,000,000.00 70.00% 2021-9-14
Newly incorporated
Co. Ltd.
Ruichang Kangrui Real Estate Co., Ltd. 10,000,000.00 70.00% 2021-9-14 Newly incorporated
Konka Industrial Development (Wuhan) Co., 10,000,000.00 51.00% 2021-10-15 Newly incorporated
25
Konka Group Co., Ltd. Annual Report 2021
Ltd.
Guizhou Konka New Material Technology 100,000,000.00 51.00% 2021-10-19
Newly incorporated
Co., Ltd.
Guizhou Kanggui Material Technology Co., 100,000,000.00 70.00% 2021-10-25
Newly incorporated
Ltd.
Chongqing Jiarun Real Estate Co., Ltd. 20,000,000.00 80.00% 2021-12-21 Newly incorporated
Nantong Kanghai Technology Industry 50,000,000.00 51.00% 2021-12-21
Newly incorporated
Development Co., Ltd.
Guangdong Xinwei Semiconductor Co., Ltd. 20,000,000.00 100.00% 2021-12-29 Newly incorporated
Chongqing Kangyiyun Business Operation 10,000,000.00 80.00% 2021-12-29
Newly incorporated
Management Co., Ltd.
Shenzhen Yijiakang Smart Terminal 20,000,000.00 100.00% 2021-12-30
Newly incorporated
Technology Co., Ltd.
Shenzhen Kangxiaojia Digital Information 20,000,000.00 100.00% 2021-12-30
Newly incorporated
Technology Co., Ltd.
Guizhou Kangkai Material Technology Co., 10,000,000.00 51.00% 2021-12-30
Newly incorporated
Ltd.
Chongqing Kangxingrui Renewable Resources 60,000,000.00 51.00% 2021-12-30
Newly incorporated
Co., Ltd.
Guizhou Kanggui Energy Co., Ltd. 100,000,000.00 100.00% 2021-12-31 Newly incorporated
Xi'an Feihe Real Estate Development Co., Ltd. 1,000,000.00 100.00% 2021-9-8 Acquired
Xi'an Huasheng Jiacheng Real Estate Co., Ltd. 100,000,000.00 100.00% 2021-10-12 Acquired
Sichuan Chengrui Real Estate Co., Ltd. 25,000,000.00 80.00% 2021-11-30 Acquired
Yantai Kangyun Industrial Development Co., 30,000,000.00 34.00% 2021-3-31
Losing control power
Ltd.
Yantai Kangyun Real Estate Development Co., 30,000,000.00 34.00% 2021-3-31
Losing control power
Ltd.
Shenzhen Kangxin Real Estate Co., Ltd. 50,000,000.00 0.00% 2021-6-17 Losing control power
Henan Kanghan Real Estate Co., Ltd. 50,000,000.00 0.00% 2021-6-17 Losing control power
Shandong Econ Technology Co., Ltd. 257,984,962.00 24.98% 2021-11-25 Losing control power
Donggang Kangrun Environmental 100,000,000.00 19.48% 2021-11-25
Losing control power
Management Co., Ltd.
Subei Mongol Autonomous County Kangrun 100,000,000.00 19.48% 2021-11-25
Losing control power
Water Co., Ltd.
Kanghong (Yantai) Environmental Technology 5,680,000.00 24.98% 2021-11-25
Losing control power
Co., Ltd.
26
Konka Group Co., Ltd. Annual Report 2021
Weifang Sihai Kangrun Investment Operation 171,000,000.00 13.69% 2021-11-25
Losing control power
Co., Ltd.
Dayi Kangrun Water Co., Ltd. 50,000,000.00 24.98% 2021-11-25 Losing control power
Suining Pengxi Kangrun Environmental 19,272,100.00 19.96% 2021-11-25
Losing control power
Management Co., Ltd.
Laizhou Lairun Wastewater Treatment Co., 56,361,600.00 8.99% 2021-11-25
Losing control power
Ltd.
Funan Kangrun Water Co., Ltd. 122,500,000.00 19.86% 2021-11-25 Losing control power
Lushan Kangrun Environmental Management 100,000,000.00 22.26% 2021-11-25
Losing control power
Co., Ltd.
Tongchuan Kangrun Honghui Environmental 76,000,000.00 22.23% 2021-11-25
Losing control power
Management Co., Ltd.
Wuhan Runyuan Wastewater Treatment Co., 142,800,000.00 17.49% 2021-11-25
Losing control power
Ltd.
Tingyuan Environmental Technology 50,000,000.00 24.98% 2021-11-25
Losing control power
(Shanghai) Co., Ltd.
Xixian Kangrun Xijian Water Environment 163,780,500.00 12.74% 2021-11-25
Losing control power
Development Co., Ltd.
Gaoping Kangrun Environmental Protection & 100,000,000.00 23.73% 2021-11-25
Losing control power
Water Co., Ltd.
Mengcheng Kangrun Anjian Water Co., Ltd. 100,000,000.00 21.23% 2021-11-25 Losing control power
Chongzhou Kangrun Environment Co., Ltd. 50,000,000.00 20.90% 2021-11-25 Losing control power
Xi'an City Gaoling District Kangrun 73,710,000.00 23.73% 2021-11-25
Losing control power
Environmental Engineering Co., Ltd.
Ankang Kangrun Xinheng Water Environment 100,000,000.00 12.74% 2021-11-25
Losing control power
Co., Ltd.
Changning Kangrun Water Co., Ltd. 50,000,000.00 22.48% 2021-11-25 Losing control power
Linfen Kangrun Jinze Water Supply Co., Ltd. 95,000,000.00 19.22% 2021-11-25 Losing control power
Kangruncheng Environmental Technology 10,000,000.00 12.74% 2021-11-25
Losing control power
(Yantai) Co., Ltd.
Bokang Renewable Resources (Yantai) Co., 30,000,000.00 12.74% 2021-11-25
Losing control power
Ltd.
Laizhou Binhai Wastewater Treatment Co., 30,000,000.00 14.99% 2021-11-25
Losing control power
Ltd.
Binzhou Beihai Jingmai Industrial 50,000,000.00 12.24% 2021-11-25
Losing control power
Development Co., Ltd.
27
Konka Group Co., Ltd. Annual Report 2021
Beijing Econ Runfeng Technology Co., Ltd. 50,000,000.00 24.98% 2021-11-25 Losing control power
Econ Environmental Engineering Co., Ltd. 50,000,000.00 24.98% 2021-11-25 Losing control power
Shanghai Jiyi Environmental Technology Co., 10,000,000.00 24.98% 2021-11-25
Losing control power
Ltd.
Binzhou Econ Zhongke Environmental 50,000,000.00 24.98% 2021-11-25
Losing control power
Technology Co., Ltd.
Rushan Econ Water Environment Management 100,000,000.00 21.73% 2021-11-25
Losing control power
Co., Ltd.
Laizhou Lairun Holding Co., Ltd. 100,000,000.00 14.99% 2021-11-25 Losing control power
Binzhou Weiyijie Environmental Technology 50,000,000.00 17.49% 2021-11-25
Losing control power
Co., Ltd.
Yantai Chunzhiran Environmental Technology 50,000,000.00 17.49% 2021-11-25
Losing control power
Co., Ltd.
Laizhou Lairun Environmental Protection Co., 50,000,000.00 8.99% 2021-11-25
Losing control power
Ltd.
Dongguan Kangjia New Materials Technology 10,000,000.00 35.00% 2021-12-27
Losing control power
Co., Ltd..
Shenzhen E2info Network Technology Co., 20,174,070.81 25.78% 2021-12-30
Losing control power
Ltd.
E2info (Hainan) Network Technology Co., 3,000,000.00 25.78% 2021-12-30
Losing control power
Ltd.
Shenzhen Kanghuijia Technology Co., Ltd. 24,678,061.22 0.72% 2021-12-30 Losing control power
Chongqing Konka Huiying Technology Co., 0.72%
30,000,000.00 2021-12-30 Losing control power
Ltd.
KK Smartech Limited 12,450,000.00（HKD） 49.00% 2021-7-7 Losing control power
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 15,597,087,360.71
Total sales to top five customers as % of total sales of the 31.76%
Reporting Period (%)
Total sales to related parties among top five customers as % of 0.00%
total sales of the Reporting Period (%)
Top five customers:
No. Customer Sales revenue contributed As % of total sales revenue (%)
28
Konka Group Co., Ltd. Annual Report 2021
for the Reporting Period
(RMB)
1 Customer A 5,453,699,861.07 11.11%
2 Customer B 3,971,105,121.54 8.09%
3 Customer C 2,397,455,165.49 4.88%
4 Customer D 1,892,942,976.86 3.85%
5 Customer E 1,881,884,235.75 3.83%
Total -- 15,597,087,360.71 31.76%
Other information about major customers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
Major suppliers:
Total purchases from top five suppliers (RMB) 16,706,736,203.10
Total purchases from top five suppliers as % of total purchases 35.15%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 6,635,611,184.04 13.96%
2 Supplier B 2,831,037,743.63 5.96%
3 Supplier C 2,672,973,208.01 5.62%
4 Supplier D 2,306,061,216.81 4.85%
5 Supplier E 2,261,052,850.60 4.76%
Total -- 16,706,736,203.10 35.15%
Other information about major suppliers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
3. Expense
Unit: RMB
2021 2020 Change (%) Reason for any significant
29
Konka Group Co., Ltd. Annual Report 2021
change
Selling 1,428,062,895.37 1,825,626,804.27 -21.78%
expense
Administr 960,449,117.12 1,022,981,943.34 -6.11%
ative
expense
Finance 952,642,273.75 1,091,609,967.76 -12.73%
costs
R&D 616,335,488.01 681,878,611.65 -9.61%
expense
4. R&D Investments
√ Applicable □ Not applicable
Names of main R&D Expected impact on the
Project objectives Project progress Objectives to be achieved
projects Company
Micro LED Display Complete 104-inch Chip on glass stack-up Enable 8K display for
Key Technology micro LED panel has been researched. The 104-inch Micro LED
Research and drive backplate of the panel
Development Project large-size Micro LED
TV is completed. The
normal driving of the
Micro LED panel is
realized.
Efficiency Research and Small batch and medium Mass production of micro
Improvement Project develop Micro batch trial productions of LED and mini LED chips
The completion of this
for Mini LED & LED epitaxy and both Micro LED chips
project will help
Micro LED chip technology to and Mini LED chips
accumulate core Micro
realize have been completed.
LED technology and
independent design
enhance the Company's
and supply of key
R&D strength.
components in
Micro LED.
Advancement of Improve the speed The self-developed By using own equipment
Mass Transfer and yield of mass mixed mass transfer and independent process
Technology for Micro transfer, and make technology has achieved technology, the mass
LED the mass significant transfer yield can be
production of improvements in transfer increased to more than
Micro LED a efficiency and yield. 99.99%.
possibility.
Research and Develop the The technology New technologies are Improve the
Development and fresh-keeping development has been developed and applied to Company's refrigerator
30
Konka Group Co., Ltd. Annual Report 2021
Industrialization of technology of the completed and applied in new products. fresh-keeping
New Key Company's the Company's products. technology and
Technologies for refrigerator enhance the product
Refrigerators Based products. competitiveness.
on Multi-Field
Coupling.
A new Generation of Enhance the It has been applied to To realize technologies The management and
Smart Video Service additional value of smart home appliances such as automated and operation efficiency of
System for Smart the operation of such as smart TV. efficient video the Company's smart
Home Appliances the video business management, personalized home appliance video
for smart home video recommendation, business is improved
appliance. precise advertising, user and the digital
big data management, transformation of the
multi-platform Company's home
compatibility design, and appliance business is
two-way human-machine facilitated.
interaction.
Details about R&D personnel:
2021 2020 Change (%)
Number of R&D personnel 1,505 1,504 0.07%
R&D personnel as % of total
9.27% 8.74% 0.53%
employees
Educational background of R&D
—— —— ——
personnel
Bachelor’s degree and below 1,344 1,339 0.37%
Master’s degree 151 155 -2.58%
Doctoral degree 10 10 0.00%
Age structure of R&D personnel —— —— ——
Below 30 649 719 -9.74%
30-40 607 533 13.88%
Over 40 249 252 -1.19%
Details about R&D investments:
2021 2020 Change (%)
R&D investments (RMB) 633,205,798.71 683,690,447.27 -7.38%
R&D investments as % of operating 1.29% 1.36% -0.07%
revenue
Capitalized R&D investments (RMB) 16,870,310.70 1,811,835.62 831.12%
Capitalized R&D investments as % 2.66% 0.27% 2.39%
of total R&D investments
31
Konka Group Co., Ltd. Annual Report 2021
Reason for any significant change in R&D personnel composition and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating
revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
√ Applicable □ Not applicable
Investments in Micro LED R&D projects increased.
5. Cash Flows
Unit: RMB
Item 2021 2020 Change (%)
Subtotal of cash generated from
51,951,723,686.75 52,043,626,482.73 -0.18%
operating activities
Subtotal of cash used in
51,142,967,292.64 51,865,009,954.52 -1.39%
operating activities
Net cash generated from/used in
808,756,394.11 178,616,528.21 352.79%
operating activities
Subtotal of cash generated from
6,003,236,391.07 4,798,350,613.92 25.11%
investing activities
Subtotal of cash used in investing
8,688,189,017.80 7,250,899,403.98 19.82%
activities
Net cash generated from/used in
-2,684,952,626.73 -2,452,548,790.06 -9.48%
investing activities
Subtotal of cash generated from
24,829,208,403.38 22,866,838,295.94 8.58%
financing activities
Subtotal of cash used in
21,264,351,013.39 20,731,825,242.51 2.57%
financing activities
Net cash generated from/used in
3,564,857,389.99 2,135,013,053.43 66.97%
financing activities
Net increase in cash and cash
1,670,291,105.79 -195,645,803.98 953.73%
equivalents
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
Net cash generated from/used in operating activities changed primarily because the Company
actively promoted sales and cash inflow across all the business divisions during the Reporting
Period, resulting in a decrease in both inventories and accounts receivable.
Net cash generated from/used in financing activities changed primarily because borrowings
32
Konka Group Co., Ltd. Annual Report 2021
increased during the Reporting Period compared to last year.
Reason for any big difference between the net operating cash flow and the net profit for this
Reporting Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of total
Amount Source/Reason Recurrent or not
profit
Transfer of part of equity
Return on
4,216,806,949.38 268.37% interests in E2info in the Not
investment
current period
Gain/loss on
52,490,907.33 3.34% Not
changes in fair value
Mainly for some assets,
there are impairment losses
Asset impairments -1,750,376,067.33 -111.40% Not
such as receivables,
inventory and goodwill
Non-operating
82,601,532.35 5.26% Not
income
Non-operating
24,444,724.35 1.56% Not
expense
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2021 1 January 2021 Change in
Reason for any
As % of As % of percentage
Amount Amount significant change
total assets total assets (%)
Monetary
6,489,553,211.24 16.27% 5,431,530,180.90 10.87% 5.40%
assets
Accounts
3,397,729,481.07 8.52% 3,900,897,623.59 7.81% 0.71%
receivable
Contract assets - 0.00% 2,870,006,710.39 5.74% -5.74%
Inventories 4,068,537,809.18 10.20% 4,521,300,677.41 9.05% 1.15%
Investment
776,525,061.54 1.95% 538,585,668.29 1.08% 0.87%
property
Long-term
5,902,588,939.51 14.80% 4,375,833,584.65 8.76% 6.04%
equity
33
Konka Group Co., Ltd. Annual Report 2021
investments
Fixed assets 4,010,295,277.14 10.06% 3,178,642,017.84 6.36% 3.70%
Construction in
1,490,777,831.39 3.74% 9,236,643,931.68 18.48% -14.74%
progress
Right-of-use
71,210,415.37 0.18% 104,222,631.14 0.21% -0.03%
assets
Short-term
9,920,675,121.08 24.88% 10,990,550,475.78 21.99% 2.89%
borrowings
Contract
652,910,408.02 1.64% 1,217,367,735.94 2.44% -0.80%
liabilities
Long-term
3,529,140,539.09 8.85% 5,964,748,997.54 11.93% -3.08%
borrowings
Lease liabilities 42,532,869.63 0.11% 62,278,691.85 0.12% -0.01%
Indicate whether overseas assets account for a larger proportion of the total assets.
□ Applicable √ Not applicable
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Cumula
tive Impairme
Gain/loss on fair-val nt Purchased in
Sold in the
Beginning fair-value ue allowance the Other
Item Reporting Ending amount
amount changes in the changes for the Reporting changes
Period
Reporting Period charged Reporting Period
to Period
equity
Financial assets
1. Trading
financial assets
(derivative 618,249,541.66 3,691,020.84 621,940,562.50
financial assets
excluded)
4. Other equity
instrument 25,343,293.16 -1,501,956.00 23,841,337.16
investment
Subtotal of
643,592,834.82 3,691,020.84 - - - 621,940,562.50 -1,501,956.00 23,841,337.16
financial assets
Other 1,962,211,994.20 52,705,078.02 - - 657,201,828.98 307,266,608.98 2,364,852,292.22
Total of the 2,605,804,829.02 56,396,098.86 - - 657,201,828.98 929,207,171.48 -1,501,956.00 2,388,693,629.38
34
Konka Group Co., Ltd. Annual Report 2021
above
Financial
0 0
liabilities
Particulars about other changes:
Impairme
Cumulative nt
Gain/loss on Other
fair-value allowance Purchased in the Sold in the Reporting
Item Beginning amount fair-value changes in chang Ending amount
changes charged for the Reporting Period Period
the Reporting Period es
to equity Reporting
Period
Other
non-current 1,878,154,796.76 52,705,078.02 585,711,140.44 223,209,411.54 2,293,361,603.68
financial assets
Receivables
84,057,197.44 71,490,688.54 84,057,197.44 71,490,688.54
financing
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
Ending carrying value
Item Reason for restriction
(RMB)
Of which, RMB467,911,612.25 was margin deposit pledged for borrowings or issuing
bank acceptance bills; RMB19,966,629.15 was financial supervision account funds;
Monetary assets 521,205,992.21
RMB20,918,528.76 was fixed-term deposit that cannot be withdrawn in advance;
RMB12,409,222.05 was restricted for other reasons.
Notes receivable 540,032,830.08 Pledged for billing
Investment property 354,245,460.11 Mortgaged for borrowings
Mortgaged for borrowings, mortgaged for guarantee of former
Fixed assets 1,261,093,738.34
shareholders, mortgaged for financing lease
Intangible assets 380,518,831.80 Mortgaged for borrowings, mortgaged for guarantee of former shareholders
Construction in
76,401,305.41 Mortgaged for financing lease
progress
Total 3,133,498,157.95
VII Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Amount of the same period of last year
Amount of Reporting Period (RMB) Change (%)
(RMB)
35
Konka Group Co., Ltd. Annual Report 2021
7,481,330,886.46 5,893,962,083.15 26.93%
2. Major Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Reason
Accum for not
Est
ulative meeting
Fixed im Discl Disclo
Invest Indu Accumulative Capit realized the
assets Input amount in Pr ate osure sure
ment stry actual input al revenue schedul
Item invest the Reporting ogr d date index
meth invol amount as of the resou s as of e and
ment Period ess rev (if (if
od ved period-end rces the expecte
or not en any) any)
period- d
ues
end revenue
s
Dongguan Elect
Self-f
Konka Self-b ronic 2017-
Yes 128,898,300.00 347,918,300.00 unde N/A
Intelligent uild indu 03-11
d
Industrial Park stry
Suining
Elect
Konka Self-f
Self-b ronic 2018-
Electronic Yes 147,276,950.83 333,062,092.90 unde N/A
uild indu 10-17
Technology d
stry
Industrial Park
Konka
Chuzhou
Elect
Smart Self-f
Self-b ronic 2018-
Appliances Yes 174,000,546.01 657,202,021.01 unde N/A
uild indu 12-05
and d
stry
Equipment
Industrial Park
Chongqing
Elect
Konka Self-f
Self-b ronic 2019-
Semiconducto Yes 181,506,291.09 284,948,778.36 unde N/A
uild indu 06-14
r Photoelectric d
stry
Industrial Park
Yancheng Elect
Self-f
Semiconducto Self-b ronic 2019-
Yes 147,726,544.36 148,527,208.36 unde N/A
r Assembly & uild indu 11-26
d
Test Base stry
36
Konka Group Co., Ltd. Annual Report 2021
Konka
Intelligent Elect
Self-f
Terminal Self-b ronic 2020-
Yes 32,684,007.45 40,923,207.45 unde N/A
Manufacturing uild indu 06-06
d
Base for stry
Export
Elect
Frestec Self-f
Self-b ronic 2020-
Refrigeration Yes 12,488,805.46 109,172,481.07 unde N/A
uild indu 07-21
Park d
stry
Xi’an Konka
Elect
Smart Self-f
Self-b ronic 2021-
Appliances Yes 141,515,774.75 141,515,774.75 unde N/A
uild indu 02-10
Headquarters d
stry
Project
Total -- -- -- 966,097,219.95 2,063,269,863.90 -- -- -- -- --
Note: Regarding Dongguan Konka Intelligent Industrial Park, Chongqing Konka Semiconductor
Photoelectric Industrial Park, Suining Konka Electronic Technology Industrial Park, Frestec
Refrigeration Park, and Konka Intelligent Terminal Manufacturing Base for Export, project land has
been obtained and construction begins. The infrastructure of Konka Chuzhou Smart Appliances and
Equipment Industrial Park is going through acceptance check upon the completion of construction.
As for Xi’an Konka Smart Appliances Headquarters Project, it is at a stage of construction.
Yancheng Semiconductor Assembly & Test Base has been put into production.
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
√ Applicable □ Not applicable
（1）Overall use of the raised funds
√ Applicable □ Not applicable Unit: Ten thousand Yuan
The total Accumu Total Accumu Proporti Total The Idle
Total amount lated use amount lative on of the funds purpose more
To raise Raise
fund of funds of the of funds total total raised and than two
the year way
raised collected total raised amount amount have not destinati years
has been amount for of raised of raised yet been on of the raised
37
Konka Group Co., Ltd. Annual Report 2021
used in of raised changin funds funds used raised funds
this funds g for for funds
period purposes change cumulati have not
during of use ve been
the change used
reportin of use
g period
Non-pub
lic
offering
2021 230,000 230,000 230,000 0 0 0.00% 0 No 0
of
corporat
e bonds
total -- 230,000 230,000 230,000 0 0 0.00% 0 -- 0
Description of the overall use of the raised funds
The company uses and manages the raised funds strictly in accordance with the Standard Operation Guidelines
for Listed Companies of Shenzhen Stock Exchange and other laws and regulations as well as the Company's
Management System for Raised Funds, and there is no illegal use of the raised funds.
（2）Project status of raised funds commitment
□ Applicable √ Not applicable
（3）Project changes of raised funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
√ Applicable □ Not applicable
Amou Eff Amou Re Relati
nt ect nt lat onshi
Sell
contrib of contri ed p Inde
ing Pri Owner Executed as
uted the buted -p betwe x to
pric cin ship scheduled or
Equity Date by the sal by the art en Discl discl
e g fully not, if not,
Counterparty interest of equity e sale to y count osure osed
(R pri transfe state reason
s sold sale interest on net tra erpart date infor
MB nci rred or and actions
s to net the incom ns y and mati
’0,0 ple not taken
income Co e of act the on
00)
of the m the io Com
Compa pa Comp n pany
38
Konka Group Co., Ltd. Annual Report 2021
ny ny any as or
from a no
period- perce t
beginn ntage
ing to of the
date of Comp
sale any’s
(RMB’ net
0,000) incom
e (%)
17%
interest
in Op
Yantai ti
Kangyu mi 14
31 Val
Yantai Huayi Kangqiao Real n 3,45 zin Janua
Mar. -9.3 8.48% uati No No Yes N/A
Estate Co., Ltd. Industri 1 g ry
2021 on
al the 2021
Develo Co
pment m
Co., pa
Ltd. ny
’s
39% http:
all
interest //ww
oc
in w.cn
ati
Shangh info.
on
ai 13 Val 2 com.
Shanghai Songpu Enterprise 7,47 of
Konka Apr. 0 3.35% uati No No Yes N/A Mar. cn/n
Management Co., Ltd. 8 ass
Green 2021 on 2021 ew/i
ets
Techno ndex
,
logy
inc
Co.,
rea
Ltd.
sin
51% g
interest ca
in pit
Shenzh al
Xinxiang Jianteng Real 17 Val 27
en 10,4
liq
Estate Development Co., Jun. -705.34 7.32% uati No No Yes N/A Mar.
Kangxi 42
ui
Ltd. 2021 on 2021
n dit
Propert y
y Co.,
Ltd.
39
Konka Group Co., Ltd. Annual Report 2021
11.70%
interest
in
25 30,6 Val 21
Shandong Hi-speed Company Shandon 1,526.3 24.97
Nov. 24.0 uati No Yes N/A April
Limited g Econ 5 %
2021 48 on 2021
Technol
ogy
Co.,Ltd.
Shenzhen Qiaoyi Digital
Technology Co., Ltd., Yancheng
Kangyan Information Industry
Investment Partnership (limited
partnership), Shanghai Huandian
Information Technology Co.,
Shenz
Ltd., Chongqing Kangxin Equity
hen
Investment Fund Partnership
Qiaoyi
(limited partnership), Chongqing
Digita
Kunyu Innovation Intelligence
l
Private Equity Investment Fund
Techn
Partnership (limited partnership),
ology
Hainan Huilong Investment
Co.,
Partnership (Limited
70% Ltd.
Partnership), Yibin Kanghui
interest and
Electronic Information Industry
in the
Equity Investment Fund
Shenzhe 30 Val Comp
Partnership (limited partnership), 280, 11,587. 295.68 Ye 21 Jul.
n E2info Dec. uati any Yes N/A
Xiyue New Media No.2 (Zhuhai) 000 87 % s 2021
Network 2021 on share
Investment Fund Partnership
Technol the
(limited partnership), Hangzhou
ogy Co., same
Yuanxing Yuhan Investment
Ltd contro
Fund Partnership (limited
lling
partnership), Zhuhai Zhongdi
shareh
Jinqiao Equity Investment
older,
Partnership (Limited
OCT
Partnership), Tianjin Kaiyuan
Enterp
Future Technology Venture
rises
Capital Fund Partnership
Co.,
(limited Partnership), Hangzhou
Ltd.
Huashu Zhiping Information
Technology Co., Ltd., Hunan
Changsha Tianxin District Jiuyue
Venture Capital Investment
Partnership (limited partnership),
Hunan Jiucheng Venture Capital
40
Konka Group Co., Ltd. Annual Report 2021
Investment Partnership (limited
partnership), Jiangxi Junjian
Industrial Limited Company,
Chutian Dragon Co., Ltd.,
Beijing All View Cloud Big Data
Technology Co., Ltd.
IX Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10%
effect on the Company’s net profit
Unit: RMB
Relati
onship
with Principal Operating
Name Registered capital Total assets Net assets Operating revenue Net profit
the activity profit
Comp
any
Enterprise
Konka Ventures management
Development Subsid consulting
RMB5,000,000 127,810,100.31 64,662,755.52 70,087,973.87 11,357,560.21 11,865,216.89
(Shenzhen) iary and
Co., Ltd. incubation
services
Anhui Konka Production
Subsid
Electronic Co., and sale of RMB140,000,000 2,709,207,719.09 623,629,181.19 4,976,928,097.47 20,101,559.06 12,088,889.39
iary
Ltd. electronics
Hong Kong Export &
Subsid
Konka Co., import of HKD500,000 2,395,637,944.72 334,620,013.25 2,950,550,106.15 120,196,913.47 99,670,323.83
iary
Ltd. electronics
Shenzhen
Software
Wankaida
Subsid design and
Science and RMB10,000,000 117,380,831.64 114,721,704.78 39,483,080.00 31,505,474.02 27,814,633.88
iary technology
Technology
development
Co., Ltd.
Chain Kingdom
Export &
Memory Subsid
import of USD4,876,255.39 1,124,098,702.18 140,892,289.78 9,416,436,242.22 21,235,090.37 16,707,246.42
Technologies iary
electronics
Co., Limited
Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
41
Konka Group Co., Ltd. Annual Report 2021
How subsidiary was obtained or Effects on overall operations and
Subsidiary
disposed in the Reporting Period operating performance
Chongqing Kanglei Optoelectronic Technology Co.,
De-registered
Ltd.
Henan Kangxin Real Estate Co., Ltd. De-registered
Shenzhen Kangquan Enterprise Management
De-registered
Consulting Co., Ltd.
Shenzhen Konka Suyuan Investment Industrial
De-registered
Limited Company
For better allocation of assets
Shenzhen Konka Industrial Park Development Co.,
De-registered
Ltd.
Xiamen Dalong Trade Co., Ltd. De-registered
Nanjing Chuanghui Smart Technology Co., Ltd. De-registered
Hefei Chain Kingdom Memory Technologies Co.,
De-registered
Limited.
Kangxin Semiconductor (Yantai) Co., Ltd. De-registered
Konka Kowin Memory Technology (Hong Kong) Co.,
Newly incorporated
Limited.
Kanka Industrial and Trade Technology. Newly incorporated
Shaanxi Konka Intelligent Appliance Co., Ltd. Newly incorporated
Kangruncheng Environmental Technology (Yantai)
Newly incorporated
Co., Ltd.
Yibin Kangrun Medical Waste Centralized Treatment
Newly incorporated
Co., Ltd.
Suining Konka Flexible Electronic Technology Co.,
Newly incorporated
Ltd.
Yibin Kangrun Environmental Protection Power Beneficial to the development of
Newly incorporated
Generation Co., Ltd. the Company’s relevant business
Nantong Hongdin Smart Technology Co., Ltd. Newly incorporated
Suining Konka Hongye Electronics Co., Ltd. Newly incorporated
Konka Huazhong (Hunan) Technology Co., Ltd. Newly incorporated
Kangxin Semiconductor (Yantai) Co., Ltd. Newly incorporated
Chuzhou Konka Precision Intelligent Manufacturing
Newly incorporated
Technology Co., Ltd.
Chongqing Xinyuan Semiconductor Co., Ltd. Newly incorporated
Jiangxi Konka Industrial Park Development Co. Ltd. Newly incorporated
Ruichang Kangrui Real Estate Co., Ltd. Newly incorporated
42
Konka Group Co., Ltd. Annual Report 2021
Konka Industrial Development (Wuhan) Co., Ltd. Newly incorporated
Guizhou Konka New Material Technology Co., Ltd. Newly incorporated
Guizhou Kanggui Material Technology Co., Ltd. Acquired
Chongqing Jiarun Real Estate Co., Ltd. Newly incorporated
Nantong Kanghai Technology Industry Development
Newly incorporated
Co., Ltd.
Guangdong Xinwei Semiconductor Co., Ltd. Newly incorporated
Chongqing Kangyiyun Business Operation
Newly incorporated
Management Co., Ltd.
Shenzhen Yijiakang Smart Terminal Technology Co.,
Newly incorporated
Ltd.
Shenzhen Kangxiaojia Digital Information Technology
Newly incorporated
Co., Ltd.
Guizhou Kangkai Material Technology Co., Ltd. Newly incorporated
Chongqing Kangxingrui Renewable Resources Co.,
Newly incorporated
Ltd.
Guizhou Kanggui Energy Co., Ltd. Newly incorporated
Xi'an Feihe Real Estate Development Co., Ltd. Acquired
Xi'an Huasheng Jiacheng Real Estate Co., Ltd. Acquired
Sichuan Chengrui Real Estate Co., Ltd. Acquired
Yantai Kangyun Industrial Development Co., Ltd. Equity transfer
Yantai Kangyun Real Estate Development Co., Ltd. Equity transfer
Shenzhen Kangxin Real Estate Co., Ltd. Equity transfer
Henan Kanghan Real Estate Co., Ltd. Equity transfer
Shandong Econ Technology Co., Ltd. Equity transfer
Donggang Kangrun Environmental Management Co.,
Equity transfer
Ltd. Beneficial to the development of
the Company’s relevant business
Subei Mongol Autonomous County Kangrun Water
Equity transfer and bring about a certain amount
Co., Ltd.
of gains
Kanghong (Yantai) Environmental Technology Co.,
Equity transfer
Ltd.
Weifang Sihai Kangrun Investment Operation Co.,
Equity transfer
Ltd.
Dayi Kangrun Water Co., Ltd. Equity transfer
Suining Pengxi Kangrun Environmental Management
Equity transfer
Co., Ltd.
43
Konka Group Co., Ltd. Annual Report 2021
Laizhou Lairun Wastewater Treatment Co., Ltd. Equity transfer
Funan Kangrun Water Co., Ltd. Equity transfer
Lushan Kangrun Environmental Management Co.,
Equity transfer
Ltd.
Tongchuan Kangrun Honghui Environmental
Equity transfer
Management Co., Ltd.
Wuhan Runyuan Wastewater Treatment Co., Ltd. Equity transfer
Tingyuan Environmental Technology (Shanghai) Co.,
Equity transfer
Ltd.
Xixian Kangrun Xijian Water Environment
Equity transfer
Development Co., Ltd.
Gaoping Kangrun Environmental Protection & Water
Equity transfer
Co., Ltd.
Mengcheng Kangrun Anjian Water Co., Ltd. Equity transfer
Chongzhou Kangrun Environment Co., Ltd. Equity transfer
Xi'an City Gaoling District Kangrun Environmental
Equity transfer
Engineering Co., Ltd.
Ankang Kangrun Xinheng Water Environment Co.,
Equity transfer
Ltd.
Changning Kangrun Water Co., Ltd. Equity transfer
Linfen Kangrun Jinze Water Supply Co., Ltd. Equity transfer
Kangruncheng Environmental Technology (Yantai)
Equity transfer
Co., Ltd.
Bokang Renewable Resources (Yantai) Co., Ltd. Equity transfer
Laizhou Binhai Wastewater Treatment Co., Ltd. Equity transfer
Binzhou Beihai Jingmai Industrial Development Co.,
Equity transfer
Ltd.
Beijing Econ Runfeng Technology Co., Ltd. Equity transfer
Econ Environmental Engineering Co., Ltd. Equity transfer
Shanghai Jiyi Environmental Technology Co., Ltd. Equity transfer
Binzhou Econ Zhongke Environmental Technology
Equity transfer
Co., Ltd.
Rushan Econ Water Environment Management Co.,
Equity transfer
Ltd.
Laizhou Lairun Holding Co., Ltd. Equity transfer
Binzhou Weiyijie Environmental Technology Co., Ltd. Equity transfer
Yantai Chunzhiran Environmental Technology Co., Equity transfer
44
Konka Group Co., Ltd. Annual Report 2021
Ltd.
Laizhou Lairun Environmental Protection Co., Ltd. Equity transfer
Dongguan Kangjia New Materials Technology Co.,
Equity transfer
Ltd..
Shenzhen E2info Network Technology Co., Ltd. Equity transfer
E2info (Hainan) Network Technology Co., Ltd. Equity transfer
Shenzhen Kanghuijia Technology Co., Ltd. Capital decrease
Chongqing Konka Huiying Technology Co., Ltd. Capital decrease
KK Smartech Limited Capital increase
Information about principal subsidiaries and joint stock companies:
None
X Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
XI Prospect of the Company’s Future Development
In 2022, based on the external situation and the actual situation of the Company, the Company will
tackle key problems in core technologies, build core capabilities and achieve high-quality
development. The Company’s key works for 2022 are as follows:
(I) Explore new business around the upstream and downstream of the mainline
In 2022, around the main industrial line of "semiconductor + new consumer electronics (CE) +
industrial park", the Company will adopt a strategy of lengthening and broadening. The Company
will extend the industrial chain vertically and widen the product chain horizontally, and build the
Company's new core competitiveness with advantages in technologies and supply chain.
(II) Further promote cost reduction and fee control
In 2022, the Company will further enhance cost reduction and fee control. First, it will reduce costs.
The Company will focus on reducing supply chain costs. The second is to manage expenses. While
improving the use efficiency of various expenses, the Company will reduce the cost of strategic
promotion, logistics and sales by changing the operation mode..
(III) Vigorously create benchmark quality products
In 2022, the Company will make great efforts to create benchmark quality products. By
streamlining products, functions and processes, the Company will focus its resources on creating
high-tech, high-margin and high-praise products in order to meet the needs of users and intensify
the Company's competitive advantages.
(IV) Optimize the asset and financial structure
In 2022, the Company, with the aim of optimizing the assets and financial structure, will, first of all,
actively improve the debt structure and reduce the proportion of short-term liabilities; secondly, it
will revitalize existing assets, accelerate the realization of assets, and speed up the turnover of
inventory and accounts receivable; finally, it will actively expand financing channels and reduce
financing costs.
(V) Business operations
1. Technology Park Sub-Division
45
Konka Group Co., Ltd. Annual Report 2021
In 2022, the key tasks of the technology park sub-division are as follows: First, the Company will
explore increments, and plan for new sectors in the technology park sub-division to seek
development; second, in terms of post-investment management, the Company will ensure that the
controlled projects are delivered on schedule, and track the projects it participates.
2. Multimedia Sub-Division
In 2022, the key tasks of the multimedia sub-division are as follows: First, the Company will
enhance the quality of operation, continue to improve business performance of the multimedia
sub-division and lay a good foundation for turning losses into profits; second, the Company will
strengthen products and manufacturing, create benchmark quality products, and achieve substantial
growth of OEM and export business relying on the manufacturing capabilities of intelligent
manufacturing factories; third, the Company will optimize the management structure, and further
optimize management structure around manufacturing and marketing of the multimedia
sub-division; fourth, it is channel reuse. The multimedia business will realize channel reuse through
continuous enrichment of product lines so as to improve channel efficiency.
3. White Goods Sub-Division
In 2022, the key tasks of the white goods sub-division are as follows: First, the Company will build
a new pattern of the white goods industry through coordinated development of the full-category of
"refrigerators + washing machines + air conditioners + freezers + kitchen appliance"; second, the
Company will make greater efforts to enhance gross profits of the white goods sub-division; third,
the Company will actively engage in key areas in the upstream of the industrial chain, build
industrial barriers by means of capital, and further enhance the right to speak in the industrial chain
of white goods.
4. Industry and Trade Technology Sub-Division
In 2022, the key tasks of the industry and trade technology sub-division are as follows: First, the
Company will further promote the "trade to industry", and find new growth points through the
development of new customers, new businesses and new products, improve the ability to acquire
gross profit, and continuously improve the quality of operations; second, the Company will adjust
the income structure, continuously increase the proportion of domestic trade income, and promote
sustained and healthy business development.
5. Investment Sub-Division
In 2022, the key tasks of the investment sub-division are to do a good job in investment,
management and withdrawal of existing funds, and continue to expand the number and scale of
funds, so as to form a pattern of sufficient fundraising, sound investment, proper management, and
effective withdrawal.
6. Semiconductor Sub-Division
In 2022, the key tasks of the semiconductor sub-division are as follows: First, the Company will
realize industrialization and accelerate the industrialization of the four photoelectric technology
projects of Mini backlight, Mini direct display, Mini chip and Micro chip; second, the Company
will ensure that the R&D plan is completed on schedule; third, the Company will enhance operation
of Yancheng Semiconductor Assembly & Test Base, so as to realize the replication of the project.
7. Environmental Protection Sub-Division
In 2022, the key tasks of the environmental protection sub-division are as follows: First, the
Company will actively transform the environmental protection sub-division into new energy, rely on
photovoltaic glass and other projects to actively expand to the upstream and downstream of the
46
Konka Group Co., Ltd. Annual Report 2021
photovoltaic industry; second, the Company will promote the transformation of Chongqing Project
Company from scrap recycling business to automobile dismantling field, and accelerate the
acquisition of corresponding industrial development qualifications.
8. Mobile Internet Sub-Division
In 2022, the Company will focus on creating core products, promoting business diversification and
tapping sustainable high-yield businesses in the mobile Internet Sub-Division.
9. PCB Sub-Division
In 2022, the Company will further accelerate the growth of business scale, improve the product
structure, expand from the current product line to High Density Interconnection (HDI) board and
Flexible Printed Circuit (FPC) board, improve the product structure of PCB products, and realize
diversified and high-end products in the PCB sub-division.
10. Venture Capital Sub-Division
In 2022, the Company will build a commercial real estate operator mode based on the operation of
projects including OCT Creative Park, Wuhan and Foshan, and open up new profit support
businesses in the sub-division. In addition, the Company will continue to improve and upgrade the
construction of state-level incubators, and rely on venture capital funds and incubator platforms to
cultivate and incubate high-quality enterprises.
XII Communications with the Investment Community such as Researches, Inquiries and
Interviews
√ Applicable □ Not applicable
Index to
Way
Type of main
of Main discussions and
commu informatio
Date Place comm Communication party materials provided by the
nication n
unicati Company
party communic
on
ated
Conference
Room of Record Form for Investor
11 Wang Anya (Taiwan Dongteng
Office By Instituti Relations Activities (No.:
January Innovation Investment Co.,
Building of phone on 2021-01)
2021 Ltd.)
Konka R&D
Building
http://ww
Conference Investors participating in the
w.cninfo.c
Room of Online Performance
om.cn/new
6 April Office Individu Presentation for 2020 of Record Form for Investor
Other /index
2021 Building of al Konka Group Co., Ltd. Relations Activities (No.:
Konka R&D through 2021-02)
Building http://www.cs.com.cn/.
22 Conference One-o
Instituti Liu Menglin, Luo Weibin
Septembe Room of n-one Record Form for Investor
on (Dongguan Securities)
r 2021 Office meetin Relations Activities (No.:
47
Konka Group Co., Ltd. Annual Report 2021
Building of g 2021-03)
Konka R&D
Building
Conference
Room of One-o
18
Office n-one Instituti Xu Liang, Chen Tong (Guosen Record Form for Investor
October
Building of meetin on Securities) Relations Activities (No.:
2021
Konka R&D g 2021-04)
Building
Conference
Room of One-o
29 Xie Jude (Shenzhen Guanlan
Office n-one Instituti Record Form for Investor
October Lake Investment Holdings
Building of meetin on Relations Activities (No.:
2021 Co., Ltd.)
Konka R&D g 2021-05)
Building
Conference Hong Yan (Hangzhou Jiulong
Room of One-o Asset Management Co., Ltd.)
5
Office n-one Instituti Cai Tianfu ( Shenzhen Dadao Record Form for Investor
Novembe
Building of meetin on Zhicheng Investment Relations Activities (No.:
r 2021
Konka R&D g Management Partnership 2021-06)
Building (Limited Partnership))
Xu Yong (Ping An Securities)
Gao Yibo (Penghua Securities)
Conference Lu Lei (Hawking Capital)
Room of Chen Chunyan (Qianhai
26
Office Instituti Haochuang) Record Form for Investor
Novembe Other
Building of on Yu Junchen (Qianhai Relations Activities (No.:
r 2021
Konka R&D Jumpstart) 2021-07)
Building Zhang Xun (Infore Capital)
Dong Cheng, Feng Chenxin
(Tefa Fuhai)
Conference
Room of One-o
3
Office n-one Instituti Yan Zhekun (Topsperity Record Form for Investor
December
Building of meetin on Securities) Relations Activities (No.:
2021
Konka R&D g 2021-08)
Building
48
Konka Group Co., Ltd. Annual Report 2021
Part IV Corporate Governance
I General Information of Corporate Governance
In the Reporting Period, strictly in accordance with the Company Law, Securities Law of the PRC,
Code of Corporate Governance for Listed Companies, Share Listing Rules of Shenzhen Stock
Exchange and the relevant rules and regulations of the CSRC, the Company timely amended the
internal control systems such as the Articles of Association and Administrative Method on Provision
of External Financial Aids as well as Management System on Investors Relationship, continuously
perfected the corporate governance structure and standardized the Company’s operation. By the end
of the Reporting Period, the actual conditions of corporate governance basically met the
requirements of the regulatory documents in respect of corporate governance structure of listed
companies issued by CSRC.
(I) Shareholders and the Shareholders’ General Meeting
The Company drew up Articles of Association and Rules for Procedure of Shareholders’ General
Meeting, ensured that all shareholders, in particular medium and minor shareholders, enjoy legal
rights and equal standard. In the Reporting Period, the Company was able to publish announcement
on Shareholders’ General Meetings in advance, convened Shareholders’ General Meeting with
strictly accordance to relevant requirements, so as to enable the shareholders have their rights of
information to the Company’s material issues and the participation rights. In 2021, the Company
convened four Shareholders’ General Meeting in total. The Company seriously did well the
registration, arrangement and organization work for the Shareholders’ General Meeting before the
circular on convening the Shareholders’ General Meeting being published at the designated media.
The Company convened the Shareholders’ General Meeting at the office address of the Company
strictly in line with relevant stipulations, which was convenient in traffic, and the shareholders
could attend the session in accordance with their actual situation. The Company’s directors,
supervisors and senior management staffs made explanations and description for the shareholders’
questions and advices at the session.
(II) Controlling shareholder and the Company
In the Reporting Period, the controlling shareholders and actual controllers strictly regulated its
behavior and complied with laws in exercising their rights and obligations, not bypassed the
Shareholders’ General Meeting to intervene in the Company’s decisions and operations directly or
indirectly. The Company was separated from the controlling shareholders and actual controllers in
aspects of its business, personnel, assets, organ and finance, the Board of Directors, Supervisory
Committee and the internal departments of the Company functioned independently.
(III) Directors and the Board of Directors
49
Konka Group Co., Ltd. Annual Report 2021
The number and structure of the Board Bureau of the Company were in compliance with laws and
regulations. The Company drew up Rules for Procedures of the Board Bureau, so as to ensure a
high efficient operation and scientific decision-making of the Board Bureau; the Company has set
up Independent Director System and engaged three independent directors. In the Reporting Period,
the number of directors and composition of the Board of Directors of the Company as well as the
procedure of selection was in accordance with the requirements of the rules and laws as well as
Articles of Association. The Company set up four special committees, which were Financial Audit
Committee, Nomination Committee, Remuneration & Appraisal Committee, Strategy Committee to
provide profession opinion for the decision of the Board of Directors. All the directors carried out
their work, fulfilled their duties and scrupulously attended the Board sessions in accordance with
Rules of Procedure for the Board of Directors, Rules for Independent Directors, etc. 15 Board
sessions were convened by the Company during the Reporting Period, which brought the
decision-making mechanism of the Board of Directors into full play.
(IV) Supervisors and supervisory committee
The Company has established Rules for Procedures of the Supervisory Committee, persons and
structure of the Supervisory Committee was in line with relevant laws and statutes, supervisors can
earnestly perform their responsibilities, independently and efficiently executed supervision and
check responsibilities with a spirit of being responsible to shareholders. In the Reporting Period, the
number of supervisors and composition of the Supervisory Committee of the Company as well as
their selecting procedure complied with the laws, regulations. In accordance with the requirement of
the Rules of Procedure for Supervisory Committee, the supervisors performed their duties in an
earnest and responsible manner, and exercised their functions of supervision on the decision-making
procedure of the Board of Directors, resolutions and the Company’s operation by law, and took
effective supervision over the Company’s significant events, related transactions, financial position,
as well as the legality and compliance on duty performance by the directors, president and other
senior management members.
(V) Performance Appraisal and Incentive & Restrictive Mechanism
The senior management staffs of the Company were recruited on an open basis and in compliance
with the laws and regulations. The Company has established and gradually improved the
performance appraisal standards and incentive & restrictive mechanism for senior management
staffs, so as to attract qualified personnel, and ensure the stability of senior management staffs.
(VI) Interested parties
During the Reporting Period, the Company fully respected and maintained the legal rights of the
interested parties, and realized the balance of interest among the parties such as society,
shareholders and employees, etc. Meanwhile, the Company protected the rights of the employees,
promoted the environmental protection, and actively joined in the social benefit and charitable
50
Konka Group Co., Ltd. Annual Report 2021
cause so as to jointly promote sustainable and healthy development.
(VII) Information disclosure and transparency
The Company formulated the Management System for Investor Relations and the Management
System for Information Disclosure and the Rules on Implementation for Information Disclosure
Committee. And the Company designated specially-assigned person to take charge of the
information disclosure, and designated specialized department to be responsible for the reception of
shareholders and consultation, actively carrying out the work for investor relations management to
ensure equal access to information for all shareholders. The Company strictly complied with the
requirements of the laws, regulations and the Articles of Association to disclose its information as
required by the relevant regulations on an timely, honest, complete and accurate basis, to ensure the
accurate and timely information disclosure, while ensure equal access to information for all
shareholders.
(VIII) Non-standard governance
1. Type of non-standard governance matter existed
There was a situation that the Company disclosed undisclosed information.
2. Types and cycle of undisclosed information provided to the principal shareholder
The Company provided monthly financial data to the principal shareholder.
3. Reasons for the related non-standard governance existed
The Company submitted the undisclosed information such as monthly financial data to the
substantial shareholder directly administrated by the State-owned Assets Supervision and
Administration Commission of State Council in accordance with the managerial demand of
SASAC.
4. Impact on Company independence
After the self-inspection, the Company kept strictly to the requirements of “Notice on Strengthening
the Supervision of Listed Company’s Provision of Non-public Information to Substantial
Shareholders and Actual Controllers”, and “Supplementary Notice Concerning Strengthening the
Supervision of the Non-standard Governance Behavior of Listed Company's Provision of
Non-public Information to Substantial Shareholders and Actual Controllers”, while stringently
performed the necessary procedures. There existed no circumstances of substantial shareholder’s
abuse of control and disclosure of undisclosed information for insider trading, and hence, it has no
impact on the independence of the Company.
(IX) Development of company’s special governance activity, formulation and implementation
of registration and management system for the insider of inside information
1. Establishment and perfection of management system for the insider of inside information
To further standardize the company’s inside information management behavior, strengthen the
company’s inside information confidential work, and maintain the fair principle of information
51
Konka Group Co., Ltd. Annual Report 2021
disclosure, the Company established Inside Information and Insider Management System in Konka
Group Co., Ltd. The Company strictly implements the system in the information disclosure work,
meanwhile, carefully implements the Company’s inside information and insider registration and
management method, registers the insider of inside information, and report to Shenzhen Stock
Exchange and Shenzhen Security Regulatory Bureau according to the provision.
The Company conducted the special inspection on the inside information management during the
occurrence of major event in 2021 and the annual report in 2021. After the inspection, the Company
actually realized that the insider of inside information strictly kept the confidential provision, did
not disclose, divulge and spread the Company’s inside information to the outside, the insider of
inside information did not buy and sell the Company’s share with the inside information before
disclosing the major sensitive information influencing the Company’s share price, there was no
investigation and rectification from the regulatory department during the editing, review and
disclosure of regular report and major event. Management Rules for Inside Information and Insider
Management System of Konka Group Co., Ltd. was implemented in place and controlled
effectively.
2. Establishment and implementation of external information user’s management system
To strengthen the management on the reporting of Company’s inside information, the Company
establishes Inside Information Reporting Management System, and prescribes the inside
information reporting range, reporting procedure, responsibility division and other matters
according to Security Law in People’s Republic of China, Information Disclosure Management
Method in Listed Company, Inside Information and Insider Management System in Konka Group
Co., Ltd. and other related provisions in the laws, regulations and regulatory documents.
The Company conducted the special inspection on the inside information reporting status during the
occurrence of major event in 2021 and the annual report in 2021. After the inspection, the
Company’s inside information reporting status complies with the requirements in Inside
Information Reporting Management System. Inside Information Reporting Management System
was implemented in place and controlled effectively.
Indicate by tick market whether there is any material incompliance with laws, regulations and
provisions issued by the CSRC governing the governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business, Personnel, Asset, Organization and Financial Affairs
During the Reporting Period, the company was fully separated from the controlling shareholders in
terms of business, staff, assets, organs, and finance, which owned independent legal representative
and main status in market competition and had independent accounting, as well as possessed
52
Konka Group Co., Ltd. Annual Report 2021
complete business and the ability of independent operation to face the market.
(I) Business: the Company owned complete supply, R&D, production and sales system, possessed
ability of independent operation to face the market by independent operation, independent
accounting & decision-making, independent bearing responsibility & risks, didn’t subject to the
interference and control of the controlling shareholders, actual controller and its controlled
enterprises.
(II) Staff: the Company was independent of the controlling shareholder with respect to labor,
personnel and salaries management. The Company owned independent team of staffs, the senior
management staff, financial personnel and business personnel received their remunerations in the
Company, and they were full-time staffs of the Company without holding any post, except directors
and supervisors, in shareholders’ units or other related enterprises.
(III) Assets integrity: the Company had production and operation premises completely separated
from the controlling shareholder, and the unaffiliated and integral assets structure, as well as the
independent production system, ancillary production system, the ancillary facilities, house property
right and other assets, which also possessed independent procurement and sales system.
(IV) Organ: the Company had its own functional organs adapting to the needs of self-development
and market competitiveness, all the functional organs were separated from each other in aspects of
personnel, office premises and management rules, etc., there existed no particulars about any
shareholders, other units or individuals interfering the organ setting of the Company.
(V) Finance: the Company established an independent finance department with full-time financial
personnel and an independent finance and accounting system, and independently carried out the
financial work in line with requirements of relevant accounting rules; the Company promulgated
sound financial management system to operate independently without sharing common accounts
with the controlling shareholder, related enterprise, other units or individual; the Company
independently declared and paid the tax by laws without particulars on paying taxes together with
shareholders’ units.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Meeting
Meeting Type Date of the meeting Disclosure date
participation ratio resolutions
The 1st Resolutions of the
Extraordinary
Extraordinary 1st Extraordinary
General 24.48% 15 March 2021 16 March 2021
General Meeting General Meeting
Meeting
of 2021 of 2021
The 2020 Annual Annual General 24.42% 19 April 2021 20 April 2021 Resolutions of the
53
Konka Group Co., Ltd. Annual Report 2021
General Meeting Meeting 2020 Annual
General Meeting
The 2nd Resolutions of the
Extraordinary
Extraordinary 2nd Extraordinary
General 24.42% 18 August 2021 19 August 2021
General Meeting General Meeting
Meeting
of 2021 of 2021
The 3rd Resolutions of the
Extraordinary
Extraordinary 3rd Extraordinary
General 24.41% 1 November 2021 2 November 2021
General Meeting General Meeting
Meeting
of 2021 of 2021
2. Special General Meetings Convened at the Request of Preferred Shareholders with
Resumed Voting Rights
□ Applicable √ Not applicable
V Directors, Supervisors, Senior Management and Staff
1. Basic Information
Num
ber Incre Decr
Begi
of ase in ease Other Endi
nnin
grant the in the incre ng Reas
Incu G g Stoc
ed Repo Repo ase/d share on
Office mbe en A Start of End of shar k
Name restri rting rting ecrea holdi for
title nt/Fo de ge tenure tenure ehol opti
cted Perio Perio se ng chan
rmer r ding ons
share d d (shar (shar ge
(sha
s (shar (shar e) e)
re)
(shar e) e)
e)
Directo
r, 3
Incu M 3
Liu Chairm Decem
mbe al 50 Decemb 0 0 0 0 0 0 0
Fengxi an of ber
nt e er 2018
the 2022
Board
3
Incu M 14
Directo Decem
Yao Wei mbe al 47 Septemb 0 0 0 0 0 0 0
r ber
nt e er 2020
2022
3
Incu M 3
Zhou Directo Decem
mbe al 43 Decemb 0 0 0 0 0 0 0
Bin r ber
nt e er 2018
2022
54
Konka Group Co., Ltd. Annual Report 2021
3
Incu M 21
Ye Directo Decem
mbe al 52 March 0 0 0 0 0 0 0
Xingbin r ber
nt e 2022
2022
Indepe 3
Sun Incu M 3
ndent Decem
Shengdi mbe al 67 Decemb 0 0 0 0 0 0 0
directo ber
an nt e er 2018
r 2022
Indepe 3
Wang Incu M 3
ndent Decem
Shuguan mbe al 51 Decemb 0 0 0 0 0 0 0
directo ber
g nt e er 2018
r 2022
Indepe Fe 3
Deng Incu 3
ndent m Decem
Chunhu mbe 59 Decemb 0 0 0 0 0 0 0
directo al ber
a nt er 2018
r e 2022
Superv
isor,
chairm
3
an of Incu M 15
Cai Decem
the mbe al 49 March 0 0 0 0 0 0 0
Weibin ber
Superv nt e 2021
2022
isory
Commi
ttee
3
Incu M 3
Yang Superv Decem
mbe al 53 Decemb 0 0 0 0 0 0 0
Guobin isor ber
nt e er 2018
2022
3
Incu M 29
Superv Decem
Li Jun mbe al 51 Novemb 0 0 0 0 0 0 0
isor ber
nt e er 2018
2022
Incu M 27 27
Zhou Preside
mbe al 43 March March 0 0 0 0 0 0 0
Bin nt
nt e 2020 2023
Vice Incu M 27 27
Li
preside mbe al 54 March March 0 0 0 0 0 0 0
Hongtao
nt nt e 2020 2023
Wu Board Incu M 27 27
47 0 0 0 0 0 0 0
Yongjun Secreta mbe al March March
55
Konka Group Co., Ltd. Annual Report 2021
ry nt e 2020 2023
Incu M 27 27
Li
CFO mbe al 49 March March 0 0 0 0 0 0 0
Chunlei
nt e 2020 2023
Vice Incu M 27 27
Yang Bo preside mbe al 52 March March 0 0 0 0 0 0 0
nt nt e 2020 2023
Vice Incu M 27 27
Cao
preside mbe al 44 March March 0 0 0 0 0 0 0
Shiping
nt nt e 2020 2023
Superv
isor,
chairm
an of M 3 15
Wang For
the al 61 Decemb March 0 0 0 0 0 0 0
Youlai mer
Superv e er 2018 2021
isory
Commi
ttee
M 3 11
Zhang Directo For
al 40 Decemb October 0 0 0 0 0 0 0
Jing r mer
e er 2018 2021
M 1 28
Li Directo For
al 44 Novemb Februar 0 0 0 0 0 0 0
Zheng r mer
e er 2021 y 2022
Vice M 27 28
Sun For 26,0 26,00
preside al 50 March Februar 0 0 0 0 0
Qingyan mer 00 0
nt e 2020 y 2022
26,0 26,00
Total 0 0 0 0 0
00 0
Indicate by tick mark whether any directors or supervisors left or any senior management were
disengaged during the Reporting Period
√ Yes □ No
During the Reporting Period, the former Chairman of the Supervisory Committee of the Company
Mr. Wang Youlai resigned the posts of Chairman of the Supervisory Committee and Supervisor for
job changes (retirement); the former director of the Company Mr. Zhang Jing resigned the post for
job changes.
Change of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
56
Konka Group Co., Ltd. Annual Report 2021
Name Office title Type of change Date of change Reason for change
Supervisor,
chairman of
Wang Youlai the Left 15 March 2021 Resigned for job changes (retirement)
Supervisory
Committee
Elected as Supervisor by the shareholders’
Cai Weibin Supervisor Elected 15 March 2021
meeting
Chairman of
the Elected as Chairman of the Supervisory
Cai Weibin Elected 15 March 2021
Supervisory Committee by the Supervisory Committee
Committee
Zhang Jing Director Left 11 October 2021 Resigned for job changes
Elected as Director by the shareholders’
Li Zheng Director Elected 1 November 2021
meeting
Sun Qingyan Vice president Dismissed 28 February 2022 Resigned for job changes
Li Zheng Director Left 28 February 2022 Resigned for job arrangement
Elected as Director by the shareholders’
Ye Xingbin Director Elected 21 March 2022
meeting
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the
incumbent directors, supervisors and senior management:
1. Director
Liu Fengxi, male, ethnic group of Han, born in 1972, was the Chairman of the Board with a master
degree. He once worked as the marketing GM for the multi-media division of Konka Group,
Assistant GM and then Vice GM of Shenzhen Konka Telecommunications Technology Co., Ltd.,
Chief of the Operation Management Center of Konka Group, Assistant to President, Vice President,
President, Secretary of the Party Committee and Chairman of the Board of Konka Group, Vice GM
of OCT Group, GM of Shenzhen Konka Holding Group Co., Ltd., etc. And now he is acting as the
Director, GM, Deputy Secretary of the Standing Committee of OCT Group, Deputy Chairman of
the Board and Deputy Secretary of CPC of Shenzhen Overseas Chinese Town Co., Ltd., Chairman
of the Board of Shenzhen Konka Holding Group Co., Ltd. and OCT North Investment Co., Ltd. as
well as the Board Chairman and CEO of Konka Group.
Yao Wei, Director, male, ethnic group of Han, bachelor degree, was born in 1975. He once served
as Chief Accountant in CGN Wind Power Co., Ltd., Chief Accountant in CGN New Energy
Holdings Co., Ltd., Vice GM (in charge) of Financial Department, GM of Financial Department,
GM of Finance and Asset Management Department in China General Nuclear Power Corporation.
57
Konka Group Co., Ltd. Annual Report 2021
Currently, he acts as the member of the Standing Committee and Chief Accountant in Overseas
Chinese Town Holdings Company, Chairman of the Board of OCT (Yunnan) Investment Co., Ltd.,
Director of China Everbright Bank Co., Ltd. and Konka Group.
Zhou Bin, male, ethnic group of Han, born in 1979, was the director and president of the Company
with a bachelor degree. He once served as the director assistant, deputy director and director in
Operating Management Center in Konka Group, assistant of the president in the Board of Directors
& Director in Operating Management Center in Konka Group and President of Konka Group. Now,
he acts as the Chairman of Shenzhen Konka Investment Holdings Co., Ltd. and Shenzhen Konka
Capital Equity Investment Management Co., Ltd. and Shenzhen OCT Kangkong Private Equity
Fund Management Co., Ltd., Director of Shenzhen Konka Holding Group Co., Ltd., and Director,
Secretary of the Party Committee and President in Konka Group.
Ye Xingbin, male, Han Chinese, was born in 1970, and holds a bachelor's degree. He previously
served as a Special Director at the Overseas Chinese Town Holdings Company (OCT Group), and
was a member of the Standing Committee of the Qiandongnan Prefecture of Guizhou Province, the
Deputy Governor of the Prefecture Government, and the Deputy Party Secretary of the Party
Committee of Konka Group. He is currently the Deputy Party Secretary and Director of the Party
Committee of Konka Group.
2. Independent Director
Sun Shengdian, a male senior economist, ethnic group of Han, born in 1955, was the independent
director of the Company with a doctor degree in engineering. Formerly vice GM, deputy secretary
of the Party committee, GM and president of Shenzhen SEG, Hitachi Color Display Devices Co.,
Ltd., president, secretary of Party Committee of Shenzhen SEG Group Co., Ltd. director of
Shenzhen China Star Optoelectronics Technology Co., Ltd., independent director of Skyworth
Holding Ltd., the vice president of Shenzhen Huakong SEG Co., Ltd., and the head of Shenzhen
Electronics Industries Association. Now, he serves as the independent director of Konka Group.
Wang Shuguang, Independent Director, male, ethnic group of Han, was born in 1971, PhD in
economics, professor and doctoral supervisor. He served as Independent Director of Yantai Rural
Commercial Bank, Jinan Rural Commercial Bank, Ningbo Yuyao Rural Commercial Bank and
SDIC Zhonglu, and External Supervisor and Convener of the Board of Supervisors of Industrial
Bank Co., Ltd. Currently, he serves as Professor and Doctoral Supervisor in the School of
Economics of Peking University, Executive Deputy Director of the Institute for Cultural Industries,
Peking University and Independent Director of Konka Group.
58
Konka Group Co., Ltd. Annual Report 2021
Deng Chunhua, Independent Director, female, ethnic group of Han, born in 1963, MBA, professor
and master’s supervisor of accounting, Certified Public Accountant in China (non-practicing
member). She served as Chief Accountant and Project Manager of WUYIGE Certified Public
Accounts LLP, Zhongnan University of Economics and Law, Member of the Fifth Session of the
Corporate Special Committee of the Chinese Association of Quantitative Economics and Member
of the Professional Jury Committee of Hubei Administration of Sport. From July 1984 till now, she
has been teaching in the School of Accounting of Zhongnan University of Economics and Law as
Assistant Lecturer, Lecturer, Associate Professor and Professor. Currently, she serves as
Independent Director of Zhejiang Goldensea Hi Tech Co.,Ltd, Zhejiang Jinke Tom Culture Industry
Co., Ltd., Wolong Electric Group Co., Ltd., Zhejiang Youchuang Material Technology Co., Ltd. and
Konka Group.
3. Supervisor
Cai Weibin, Chairman of the Supervisory Committee, male, ethnic group of Han, Master’s Degree,
was born in 1973. He once served as vice GM, deputy secretary of the Party Committee and
Secretary of Committee for Discipline Inspection in Chongqing OCT Industry Development Co.,
Ltd. Vice Minister of Discipline Inspection and Supervision and Director of the Discipline
Inspection Office in Overseas Chinese Town Holdings Company Currently, he acts as GM of Legal
Compliance Department in Overseas Chinese Town Holdings Company and Chairman of the
Supervisory Committee of Konka Group.
Yang Guobin, Supervisor, male, was born in 1969, Bachelor’s Degree, Certified Public Accountant.
He served as Deputy Director of the Finance Department of OCT Group, CFO of Konka Group and
Deputy Director of the Corporate Management Department of OCT Group. Currently, he serves as a
full-time external Director of Board Office in OCT Group and Supervisor of Konka Group.
Li Jun, male, ethnic group of Han, born in 1971, member of Communist Party, was an employee
supervisor of the Company with a bachelor degree. Formerly worked as the financial manager of
Nanchang Branch of Telecommunications Technology Co., Ltd., Senior Manager of the Financial
Department in Telecommunications Technology Co., Ltd., the Senior Manager and assistant to the
chief and deputy director of Auditing and Legal Affairs Department in Konka Group, leader of
discipline inspection commission of Konka Group, and employee supervisor of the 8th Supervisory
Committee of Konka Group. Presently working as the deputy secretary of discipline inspection
commission of Konka Group, General counsel,Office Director of discipline Inspection
Commission,Chief of the Auditing and Legal Affairs Department and Employee Supervisor of
59
Konka Group Co., Ltd. Annual Report 2021
Konka Group.
4. Senior Executive
Zhou Bin, male, ethnic group of Han, born in 1979, was the director and president of the Company
with a bachelor degree. He once served as the director assistant, deputy director and director in
Operating Management Center in Konka Group, assistant of the president in the Board of Directors
& Director in Operating Management Center in Konka Group and President of Konka Group. Now,
he acts as the Chairman of Shenzhen Konka Investment Holdings Co., Ltd. and Shenzhen Konka
Capital Equity Investment Management Co., Ltd. and Shenzhen OCT Kangkong Private Equity
Fund Management Co., Ltd., Director of Shenzhen Konka Holding Group Co., Ltd., and Director,
Secretary of the Party Committee and President in Konka Group.
Li Hongtao, male, Han nationality, born in 1968, was the vice president of the Company with a
bachelor degree. He successively took the post such as Assistant to GM, GM, Chairman of the
Board and GM of Shenzhen Konka Telecommunication Technology Co., Ltd and Assistant to
President and vice president of Konka Group etc. He now is acting as Vice President of Konka
Group.
Wu Yongjun, male, Han nationality, born in 1975, was the Board Secretary with a master degree.
Formerly he worked as the senior manager of Secretariat, assistant to the chief, vice chief, chief,
Securities Affairs representative and Board Secretary in Konka Group. Presently he is working as
the secretary of the board of directors of Konka Group.
Li Chunlei, male, Han nationality, born in 1973, was the CFO of the Company with a master degree.
Once served as the director in Real Estate Business Division in Konka Group, vice GM and GM in
Kunshan Kangsheng Investment Development Co., Ltd., deputy director (preside the work) and
director in Strategic Development Center, GM in Financial Center and GM in Asset Settlement
Center and CFO of Konka Group. now he acts as the CFO in Konka Group.
Yang Bo, male, Han nationality, born in 1970, was the vice president of the Company with a master
degree. Once served as the director in Shenzhen Cable Television Education Financial Channel,
director in the market sales and support region of US Tailiyang Communications Company, GM in
Program Operating Department in Shenzhen Topway Video Communication Co., Ltd., director and
GM in Shenzhen Tianhua Century Media Co., Ltd., GM in Market Sales Center in Shenzhen
Topway Video Communication Co., Ltd. and vice president of Konka Group. Now he acts as the
vice president in Konka Group.
Cao Shiping, male, Han nationality, born in 1978, was the vice president of the Company with a
master degree. Once served as the GM in Jinzhou Branch and Tianjin Branch of Konka Group
Multi-media, GM in Multi-media Business Division Customer Cooperation Department, vice GM
in Multi-media Marketing Business Division, vice GM in Multi-media Business Division and GM
60
Konka Group Co., Ltd. Annual Report 2021
in Marketing Center, GM in Multi-media Business Division, GM in Internet Business Division and
vice president of Konka Group. Now he acts as the vice president in Konka Group.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Remuneration or
Office held in the allowance from
Name Shareholding entity Start of tenure End of tenure
shareholding entity the shareholding
entity
Director, Deputy
Liu Fengxi OCT Group Secretary of CPC, 21 May 2021 Yes
GM
Deputy Chairman of
Shenzhen Overseas Chinese 11 September
Liu Fengxi the Board, Deputy
Town Co., Ltd. 2021
Secretary of CPC
Shenzhen Konka Holding Chairman of the
Liu Fengxi 9 October 2021
Group Co., Ltd. Board
OCT North Investment Co., Chairman of the 18 December
Liu Fengxi
Ltd. Board 2021
Party Committee
Yao Wei OCT Group Standing Committee 3 July 2020 Yes
and Chief Accountant
OCT (Yunnan) Investment Chairman of the 25 November
Yao Wei
Co., Ltd Board 2021
Shenzhen Konka Holding
Zhou Bin Director 14 April 2020
Group Co., Ltd.
GM of Legal
1 December
Cai Weibin OCT Group Compliance Yes
2020
Department
Full-time external
Yang
OCT Group director in Board 7 March 2018 Yes
Guobin
Office
1. Except the above situation, other directors, supervisors and senior management didn’t hold any position in the
shareholders’ units.
Notes
2. It is unknown the ending date of the posts of Mr. Liu Fengxi, Mr. Yao Wei, Mr. Cai Weibin, Mr. Zhou Bin and
Mr. yang Guobin held in the shareholders’ units.
Offices held concurrently in other entities:
√Applicable □Not applicable
Name Other entity Office held in Start of tenure End of tenure Remuneration or
61
Konka Group Co., Ltd. Annual Report 2021
the entity allowance from
the entity
10 February
Yao Wei China Everbright Bank Co., Ltd Director
2021
Wang School of Economics of Peking
Professor Yes
Shuguang University
Wang Institute for Cultural Industries of
Deputy director
Shuguang Peking University
Deng Zhongnan University of Economics
Professor Yes
Chunhua and Law
Deng Zhejiang Goldensea Hi Tech Independent
15 May 2019 Yes
Chunhua Co.,Ltd director
Deng Zhejiang Jinke Culture Industry Independent
8 July 2020 Yes
Chunhua Co., Ltd. director
Deng Independent 8 September
Wolong Electric Group Co., Ltd. Yes
Chunhua director 2020
Deng Zhejiang Youchuang Material Independent
Chunhua Technology Co., Ltd. director
Notes None
Punishments imposed in the recent three years by the securities regulator on the incumbent directors,
supervisors and senior management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors,
supervisors and senior management:
The salary of directors and supervisors of the Company should be submitted to the shareholders
meeting for review after the approval and consent by the Board of directors. Referred to the salary
level of the Directors and Supervisor of the domestic listed companies of same industry, the salary
proposal of the Director and Supervisors of the Company which approved and reviewed by the 2nd
Extraordinary General Meeting of 2015 were as follows: (1) the basic annual salary standard of the
Board Chairman was of RMB1.2 million, the subsidy standard of other Directors (excluding the
Directors serving in the Company) was of RMB0.3 million per person per year and the subsidy
standard of the Supervisors (excluding the Employee Supervisors) was of RMB0.2 million per
person per year; which was executed since June 2015. (2) the above standards were all pre-tax
standard with the individual income tax burdened in person as well as the Company withheld and
remitted tax.
Other treatment for independent directors: travel expense when they went to attend the Board
62
Konka Group Co., Ltd. Annual Report 2021
sessions, Supervisory sessions or Shareholders’ General Meetings and the expenses when they were
performing their duties as stipulated in the relevant regulations and the Articles of Association and
other relevant systems, all these could be reported for deletion.
The Board of Directors determined the remuneration of senior management staffs referring to the
following factors: a. scope of jobs and responsibility shouldered; b. actual profit of the Company; c.
market remuneration level in the same industry and same area.
Remuneration of the directors, supervisors and senior management of the Company during the
Reporting Period
Unit: RMB'0,000
Total
Any
before-tax
Incumbent/For remuneration
Name Office title Gender Age remuneration
mer from related
from the
party
Company
Liu Fengxi Chairman of the Board, CEO Male 50 Incumbent Yes
Yao Wei Director Male 47 Incumbent Yes
Zhou Bin Director, President Male 41 Incumbent 538.14 No
Director,
Ye Xingbin Male 52 Incumbent 217.36 No
Deputy Secretary of CPC
Sun Shengdian Independent director Male 67 Incumbent 30 No
Wang
Independent director Male 51 Incumbent 30 No
Shuguang
Deng Chunhua Independent director Female 59 Incumbent 30 No
Chairman of the Supervisory
Cai Weibin Male 49 Incumbent Yes
Committee
Yang Guobin Supervisor Male 53 Incumbent Yes
Li Jun Employee Supervisor Male 51 Incumbent 142.95 No
Li Hongtao Vice president Male 54 Incumbent 275.13 No
Wu Yongjun Board Secretary Male 47 Incumbent 267.91 No
Li Chunlei CFO Male 49 Incumbent 292.97 No
Yang Bo Vice president Male 50 Incumbent 266.94 No
Cao Shiping Vice president Male 44 Incumbent 292.99 No
Chairman of the Supervisory
Wang Youlai Male 61 Former Yes
Committee
Zhang Jing Director Male 40 Former Yes
Li Zheng Director Male 44 Former Yes
63
Konka Group Co., Ltd. Annual Report 2021
Sun Qingyan Vice president Male 50 Former 261.90 No
Total -- -- -- -- 2,646.29 --
VI Performance of Duty by Independent Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
Date of the
Meeting Disclosure date Meeting resolutions
meeting
The 38th Resolution on the Incentive Scheme for Special
Contribution; Resolution on Applying for General Credit
Meeting of Limit from Shenzhen Branch, China Guangfa Bank Co., Ltd.
the 9th 2021-1-15
Board of
Directors
The 39th
Resolutions of the 39th meeting of the ninth Board of
Meeting of Directors. Resolution on Investing in the Project of
the 9th 2021-2-26 2021-2-27 Constructing Headquarters for Konka Smart Home
Appliance; Resolution on Investing in the Project of
Board of Constructing Konka Silk Road Science and Technology City.
Directors
Resolutions of the 40th meeting of the ninth Board of
Directors; Resolution on Applying for General Credit Limit
from China Resources Bank of Zhuhai Co., Ltd. (CRBC);
Resolution on Applying for General Credit Limit from
Shenzhen Rural Commercial Bank (SRCB); Resolution on
Applying for General Credit Limit from Bank of Beijing Co.,
The 40th Ltd. (BOB); Resolution on Applying for General Credit
Limit from China Construction Bank (CCB); Resolution on
Meeting of Applying for General Credit Limit from China Bohai Bank
the 9th 2021-3-22 2021-3-24 Co., Ltd.; Resolution on Applying for General Credit Limit
from Guangdong Huaxing Bank; Resolution on Applying for
Board of General Credit Limit from Bank of Hangzhou; Resolution on
Directors Applying for General Credit Limit from the Shenzhen
Branch, Hua Xia Bank Co., Ltd.; Resolution on Applying for
General Credit Limit from the Shanghai Pudong
Development Bank (SPD bank); Resolution on Applying for
General Credit Limit from Industrial Bank Co., Ltd.;
Resolution on Applying for General Credit Limit from
Agricultural Bank of China (ABC).
The 41st
Meeting of
Resolutions of the 41st meeting of the ninth Board of
the 9th 2021-4-28 2021-4-29 Directors
Board of
Directors
The 42nd
Meeting of
Resolutions of the 42nd meeting of the ninth Board of
the 9th 2021-5-28 2021-6-1 Directors
Board of
Directors
The 43rd Resolution on the Annual Incentive and Salary Plan for 2020
for the Company's Management Team; Resolution on
Meeting of 2021-7-16 Applying for General Credit Limit from China Everbright
the 9 th Bank
64
Konka Group Co., Ltd. Annual Report 2021
Board of
Directors
The 44th
Meeting of
Resolutions of the 44th meeting of the ninth Board of
the 9th 2021-8-2 2021-8-3 Directors
Board of
Directors
The 45th
Meeting of Resolutions of the 45th meeting of the ninth Board of
the 9th 2021-8-26 Directors; Resolution on Making Donations to Help Alleviate
Poverty in Guangdong Province.
Board of
Directors
The 46th
Meeting of
Resolutions of the 46th meeting of the ninth Board of
the 9th 2021-9-10 2021-9-11 Directors
Board of
Directors
Resolutions of the 47th meeting of the ninth Board of
The 47th Directors; Resolution on the Listing Transfer of 49% Equity
Meeting of in Kunshan Konka Electronic Co., Ltd.; Resolution on
Applying for General Credit Limit from Shenzhen Branch,
the 9th 2021-10-13 2021-10-15 China Minsheng Bank; Resolution on Applying for General
Board of Credit Limit from the Hongkong and Shanghai Banking
Corporation Limited; Resolution on Applying for General
Directors Credit Limit from Chiyu Banking Corporation Limited.
The 48th
Meeting of
Resolutions of the 48th meeting of the ninth Board of
the 9th 2021-10-27 Directors
Board of
Directors
The 49th
Meeting of
Resolutions of the 49th meeting of the ninth Board of
the 9th 2021-11-5 2021-11-6 Directors
Board of
Directors
Resolution on Participating in the Auction for Land Use
Rights in Bishan District, Chongqing; Resolution on
The 50 th
Investment in Constructing Konka Digital Economy
Meeting of Industrial Park; Resolution on the Listing Transfer of 100%
Equity in Konka Financial Lease (Tianjin) Co., Ltd.;
the 9th 2021-11-24 2021-11-26 Resolution on Applying for General Credit Limit from Bank
Board of of Dongguan; Resolution on Chongqing Konka
Optoelectronic Technology Research Institute Co., Ltd.
Directors Providing Loans to the Shareholders according to the
Percentage of Equity Interest Ownership Ration.
The 51st Resolutions of the 51st meeting of the ninth Board of
2021-12-10 Directors
Meeting of
65
Konka Group Co., Ltd. Annual Report 2021
the 9th
Board of
Directors
Resolutions of the 52nd meeting of the ninth Board of
Directors; Resolution on Applying for General Credit Limit
from Industrial and Commercial Bank of China (ICBC);
The 52nd Resolution on Applying for General Credit Limit from China
CITIC Bank; Resolution on Applying for General Credit
Meeting of Limit from Bank of Ningbo; Resolution on Applying for
the 9th 2021-12-27 General Credit Limit from China Zheshang Bank Co., Ltd.;
Resolution on Applying for General Credit Limit from
Board of Evergrowing Bank Co., Ltd.; Resolution on Applying for
Directors General Credit Limit from Bank of Beijing Co., Ltd.;
Resolution on Applying for General Credit Limit from Bank
of Communications; Resolution on Applying for General
Credit Limit from Bank of China;
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
Total The director
Board
number of Board Board failed to
Board meetings
board meetings meetings the attend two General
meetings attended by
Director meetings the attended director consecutive meetings
attended on way of
director was through a failed to board attended
site telecommuni
eligible to proxy attend meetings
cation
attend (yes/no)
Liu Fengxi 15 2 13 0 0 No 1
Yao Wei 15 2 13 0 0 No 0
Zhang Jing 9 1 8 0 0 No 0
Zhou Bin 15 2 13 0 0 No 4
Sun Shengdian 15 2 13 0 0 No 3
Wang Shuguang 15 1 14 0 0 No 0
Deng Chunhua 15 2 13 0 0 No 0
Li Zheng 4 0 4 0 0 No 0
Why any director failed to attend two consecutive board meetings:
Not applicable
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.
√ Yes □ No
Suggestions from directors adopted or not adopted by the Company:
66
Konka Group Co., Ltd. Annual Report 2021
During the Reporting Period, the Directors of the Company vigorously attended the relevant
meetings, carefully reviewed each proposal, objectively stated their own views and opinions, gained
insight into the present situation of businesses of the Company, the R&D and brand building
progress, the operating situation, and the execution situation of the internal control construction and
the resolutions of the meetings of the Board of Directors as well as the Annual General Meeting.
Directors of the Company put forward the constructive advices by use of their own professional
knowledge towards the internal management. The Company carefully adopted the advices from the
Directors and constantly improved and enhanced the management level of the Company.
VII Performance of Duties by Specialized Committees under the Board during this Reporting
Period
Other
Number informat
Details
of ion
about
Committ meeting Convened Important opinions and suggestions about
Members Content issues with
ee s date raised the
objections
convene perform
(if any)
d ance of
duty
1. The arrangement of the audit work
The arrangement on the 2020 Annual Report of the
of the 2020 annual Company was approved. 2. It was
audit and the consented that the unaudited 2020
unaudited 2020 annual financial statements shall be
annual financial provided to the CPA for the annual
statements of the audit. 3. It is required that ShineWing
2021-1-13 Company were Certified Public Accountants (special
discussed and general partnership) should carry out
deliberated with the auditing in strict accordance with
the certified public the requirements of the China Practice
accountants (CPA) Standards for Certified Public
for the annual Accountants, and should promptly
audit. communicate with the Committee if
Deng major problems are discovered.
Chunhua, The CPAs for
Audit
Yao Wei, annual audit were
Committ 6 engaged for the
Wang No objection was made to the 2020
ee discussion and
annual financial statements of the
Shuguan review of the
Company preliminarily audited by
2021-3-1 Company's
g ShineWing Certified Public
financial
Accountants (special common
statements after
partnership).
they have issued
preliminary audit
opinions.
Communications 1. The 2020 annual audit performed by
were made with ShineWing Certified Public
the Internal Audit Accountants (special common
Department of the partnership) was satisfying. 2. No
2021-3-12 Company; the objection was made to the 2020 Audit
2020 annual audit Report issued by ShineWing Certified
performed by Public Accountants (special common
ShineWing partnership). 3. It was proposed that
Certified Public ShineWing Certified Public
67
Konka Group Co., Ltd. Annual Report 2021
Accountants Accountants (special common
(special common partnership) be retained for further
partnership) was service as the audit institution of the
appraised; the Company's 2021 annual financial
2020 annual statements and internal control audit
financial institution.
statements were
reviewed and
retention of the
accounting firm
was deliberated.
2021Q1 financial
No objection was made to the 2021Q1
2021-4-18 statements of the
financial statements of the Company.
Company
2021 interim
No objection was made to the 2021
financial
2021-8-26 interim financial statements of the
statements of the
Company.
Company
2021-10-1 2021Q3 financial No objection was made to the 2021
statements of the interim financial statements of the
7 Company Company.
The Incentive
Scheme for
Special
It was consented that the Incentive
Contribution for
2021-1-4 Scheme shall be submitted to the board
Some Senior
meeting for discussion.
Executives of the
Company was
Sun audited.
Remunerations of Remunerations of directors,
Shengdia
directors, supervisors and senior management as
Remuner n, Liu disclosed in the Company's 2020
supervisors and
senior Annual Report were true.
ation and Fengxi,
2021-3-22 management as Remunerations of directors,
Appraisa Zhou supervisors and senior management as
4 disclosed were
audited. disclosed were consistent with the
l Bin,
Company's salary management policy
Committ Wang and no violation was found.
ee Shuguan The 2020 Bonus
Annual Pay
g, Deng It was consented that the Bonus
Scheme of the
2021-7-6 Scheme shall be submitted to the board
Chunhua Company's
meeting for discussion.
management team
was audited.
The Company's
It was consented that the Remuneration
Remuneration and
and Performance Assessment Policy
2021-12-1 Performance
shall be submitted to the board meeting
Assessment Policy
for discussion.
was audited.
Sun
Shengdia
It was agreed that Mr. Li Zheng was
Nominati n, Liu nominated as a candidate for
Selection of new
on Fengxi, non-independent director of the
directors for the
2 2021-9-30 Company's ninth Board of Directors,
Committ Wang ninth Board of
and the proposal would be submitted to
Directors.
ee Shuguan the board meeting of the Company for
deliberation.
g, Deng
Chunhua
68
Konka Group Co., Ltd. Annual Report 2021
Sun
Shengdia
n, Liu
Fengxi, The recruiting and
It was consented that the Recruiting
Zhou selecting program
and Selecting Program would be
2021-12-1 for members of
Bin, submitted to the board meeting for
managers was
discussion.
Wang audited.
Shuguan
g, Deng
Chunhua
Liu
Fengxi,
Yao Wei,
Strategic Zhou The 14th It was consented that the 14th
2021-12-1 Five-Year Plan for Five-Year Plan would be submitted to
Committ Bin, Li 1
7 Konka Group was the board meeting of Konka Group for
ee Zheng, deliberated. deliberation.
Sun
Shengdia
n
VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its
supervision in the Reporting Period.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
1,707
at the period-end
Number of in-service employees of major subsidiaries at the
14,531
period-end
Total number of in-service employees at the period-end 16,238
Total number of paid employees in the Reporting Period 16,238
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 9,037
Sales 3,599
Technical 1,505
69
Konka Group Co., Ltd. Annual Report 2021
Financial 695
Administrative 1,402
Total 16,238
Educational backgrounds
Educational background Employees
Master and above 389
Bachelor 3,401
Junior college 4,379
High school and below 8,069
Total 16,238
2. Employee Remuneration Policy
The Company promulgated its remuneration system with the operating strategy of serving for the
enterprise development and enhancement, and the principle of deciding the remuneration according
to the post, business performance and capabilities, as well as the market competitiveness and
internal fairness. And it decided the employee’s remuneration level according to its business
earnings, the posts and fulfillment of the business performance of the employee.
3. Employee Training Plans
The Company adhered to the people-oriented and paid special attention to cultivate the talents.
Surrounded by the business development and the construction of talent team, the Company actively
organized and carried out various training activities, and continuously perfected its talents
cultivation system, as well as further enhanced the employee’s professional skills and overall quality,
so as to strengthen the construction of management talents, professional talents and technical talents
teams.
In 2021, the Company was driven to boost strategy and support businesses, and centered its superior
resources on the cultivation of crucial core talents. Focusing on the personnel training system of
"Three Tiers and Seven Brands", Konka open classes have been organized throughout the year for
all employees of the Company; and organized and carried out the new employee’s training &
cultivation projects respectively for the graduates from campus recruiting and personnel from social
recruitment. Meanwhile, it centralized to organize the pointed the training projects of general
management skills and post professional knowledge, etc for the personnel from marketing, R&D,
manufacturing, financial and human resources systems.
4. Labor Outsourcing
□ Applicable √ Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, was formulated, executed or
revised in the Reporting Period:
70
Konka Group Co., Ltd. Annual Report 2021
√ Applicable □ Not applicable
The cash dividend policy of the Company was clearly stated in its Articles of Association, with
specific and clear dividend standards and ratios. The relevant decision-making procedure and
mechanism were sound; the independent directors faithfully performed their duties and played their
due role; and the non-controlling interests were able to fully express their opinion and desire and
their legal rights and interests were fully protected. The Company strictly followed the cash
dividend policy in its Articles of Association, and the cash dividend payout of the Company was in
line with its Articles of Association and the relevant resolution of the Shareholders’ Meeting.
According to the requirements of the Listed Company Supervision Guideline No. 3-Listed
Companies’ Cash Dividend issued by the CSRC, the Company has revised the dividend payout
policy in its Articles of Association, further clarifying the priority and proportion of cash dividend
in dividend payouts. In order to further normalize its shareholder return mechanism, push forward
the establishment of a scientific, sustained and stable shareholder return mechanism, enhance the
transparency and operability of decision-making for its dividend payout policy, and effectively
protect the legal rights and interests of public investors, the Company strictly followed the
Shareholder Return Planning for Subsequent Three Years (2019-2021), which was formulated in
2019.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and resolution of general meeting Yes
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and played their due role Yes
Non-controlling interests are able to fully express their opinion and desire and their legal rights
Yes
and interests are fully protected
In case of adjusting or changing the cash dividend policy, the conditions and procedures involved
Yes
are in compliance with applicable regulations and transparent
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for
shareholders despite the facts that the Company has made profits in the Reporting Period and the
profits of the Company as the parent distributable to shareholders are positive.
□ Applicable √ Not applicable
Final Dividend Plan for the Reporting Period
√ Applicable □ Not applicable
Share dividend per 10 shares from retained earnings (share) 0
Cash dividend per 10 shares (RMB) (tax inclusive) 0.50
Share base (share) 2,407,945,408
Total cash dividends (RMB) (tax inclusive) 120,397,270.40
71
Konka Group Co., Ltd. Annual Report 2021
Cash dividends in other ways (such as share repurchase) (RMB) 0.00
Total cash dividends (including other ways) (RMB) 120,397,270.40
Distributable profits (RMB) 5,229,098,788.94
Cash dividends as a percentage of total profits to be distributed (%) 100%
Details of cash dividend for the Reporting Period
The minimum proportion of cash dividend to this profit distribution should be 80% when the Company distributed the profits
under the condition that the Company was in mature stage with large capital cost.
Details about the proposal for profit distribution and converting capital reserve into share capital
In the company's 2021 audited consolidated financial statements, the net profit attributable to the owner shareholders of the
parent company is RMB 905,352,997.68, and the undistributed profit is RMB 5,229,098,788.94. The net profit in the audited
financial statements of the parent company in 2021 is 324,592,545.67 yuan, and the undistributed profit is 2,724,187,542.59
yuan. According to the provisions of relevant laws and regulations, the articles of association and the long-term development
needs of the company, the profit distribution plan for 2021 is as follows:
1. Set aside 10% of the statutory surplus reserve according to the net profit of the parent company's audited financial statements
in 2021, with an amount of RMB 32,459,254.57, without withdrawing any reserve fund.
2. Based on the total share capital of 2,407,945,408 shares at the end of 2021, cash dividend of 0.50 Yuan (including tax) will be
distributed to all shareholders for every 10 shares. It is estimated that the cash dividend to be distributed will be 120,397,270.40
yuan. Do not withdraw statutory surplus reserve fund and arbitrary reserve fund. If the share capital of the Company changes
after the board of Directors considers the profit distribution plan, the amount of cash dividend per share will be adjusted
according to the principle of unchanged total distribution.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
The Company has established and improved the Company's internal control system in accordance
with the regulations of the China Securities Regulatory Commission and the Shenzhen Stock
Exchange, following the basic principles of internal control, and on the basis of the Company's
actual situation. The Company's Financial Audit Committee, and Audit and Legal Affairs Center
follow the guidance of value management, seek the goal of strengthening risk management and
control, continuously enhance audit supervision and internal control evaluation, thereby scrutinizing
and evaluating the Company's internal control management. The Company's 2021 Annual Internal
Control Self-Assessment Report comprehensively, factually and accurately reflects the actual
situation of the Company's internal control. During the Reporting Period, the Company had no
major or significant deficiencies in its internal control.
72
Konka Group Co., Ltd. Annual Report 2021
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Integration Countermeasur Settlement Follow-up
Subsidiary Integration plan Problem
progress es taken progress settlement plan
N/A N/A N/A N/A N/A N/A N/A
XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control self-evaluation report 30 March 2022
Index to the disclosed internal control self-evaluation report http://www.cninfo.com.cn/new/index
Evaluated entities’ combined assets as % of consolidated total assets 90.00%
Evaluated entities’ combined operating revenue as % of consolidated
90.00%
operating revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over Weaknesses in internal control not
Type
financial reporting related to financial reporting
Those with the following characteristics The following signs indicated there
should be recognized as great defect: (1) may exist great defect among the
found out there were malpractices of the internal control of the non-financial
Directors, Supervisors and Senior report; (1) the operating activities of
Executives of the Company that formed the enterprises seriously violated the
significant influences on the financial national laws and regulations; (2)
report; (2) the Company revised the negative news frequently disclosed by
published financial report and revised the the media which caused significant
great misstatements caused by the harm to the Company’s reputation; (3)
malpractices or the mistakes; (3) CPA the core management team left their
found out there was great misstatement of positions one after another or the
Nature standard the current financial report while didn’t outflow of the key position personnel
found during the operating process of the was serious; (4) significant business
internal control; (4) the supervision of the lacked of systematic control of the
internal control by the Finance Audit system was invalid; (5) great defect
Committee and the internal audit discovered among the internal control
institution of the Company was invalid; assessment not yet be revised in time.
(5) not yet revised the great defect after The following signs indicated there
the reasonable period as which was may exist significant defect among the
discovered among the internal control internal control of the non-financial
assessment; (6) the significant business report: (1) negative news occurred
lacked of systematic control or the rather frequently which caused rather
systematic control was invalid.. Those big harm to the Company’s reputation;
73
Konka Group Co., Ltd. Annual Report 2021
with the following characteristics should (2) the outflow of the key position
be recognized as significant defect: (1) not personnel was rather serious; (3) there
yet chosen or applied the accounting was obvious defect among the control
polices according to the generally accepted system of the significant business; (4)
accounting standards; (2) not yet the significant defect found among the
constructed the anti-spam process or internal control assessment not yet be
control measures; (3) as for the accounts revised in time. 3. Other defects from
disposal of the unconventional or special the internal control hadn’t reached the
transactions, there was no corresponding recognition standards of the great
control mechanism or execution or the defect or significant defect should be
existence of the corresponding supplement recognized as general defect.
control; (4) there was one or multiple
defects during the control of the compile
of the financial report at the period-end
and could not reasonable guarantee the
statement of the compiled financial report
reach the real and accurate target; (5) not
yet revised the significant defect after the
reasonable period as which was discovered
among the internal control assessment. 3.
Other defects from the internal control
hadn’t reached the recognition standards
of the great defect or significant defect
should be recognized as general defect.
Great defect: potential misstatement
amount≥1% of the gross profit margin of
the 2021 consolidated financial report of
the Company; significant defect: 0.5% of
the gross profit margin of the 2021
Implement in accordance with the
consolidated financial report of the
quantitative criteria of internal control
Quantitative standard Company ≤potential misstatement amount
defect evaluation in financial
＜ 1% of the gross profit margin of the
statements
2021 consolidated financial report of the
Company; general defect: potential
misstatement amount ＜ 0.5% of the gross
profit margin of the 2021 consolidated
financial report of the Company.
Number of material weaknesses in
0
internal control over financial reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in 0
74
Konka Group Co., Ltd. Annual Report 2021
internal control over financial reporting
Number of serious weaknesses in
internal control not related to financial 0
reporting
2. Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We considered that, in all the significant aspects, Konka Group maintained efficient internal control of the financial report
according to the C-SOX and the relevant regulations on 31 December 2021.
Disclosure of such report Disclosed
Disclosure date 30 March 2022
Index to such report disclosed http://www.cninfo.com.cn/new/index
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal
control not related to financial None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report
on the Company’s internal control.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is
consistent with the internal control self-evaluation report issued by the Company’s Board.
√ Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
There were no written minutes for the 35th meeting of the ninth Board of Directors and the 10th
meeting of the ninth Board of Supervisors of the Company held on 30 October 2020. In view of the
pandemic, holding on-site meeting is not appropriate; in the meantime, the topics of the meetings of
the Board of Directors and the Board of Supervisors were simple, and the directors and the
supervisors had been fully communicated before the meeting. After obtaining the verbal consent of
all directors and supervisors, it was decided that the meetings of the Board of Directors and the
Board of Supervisors shall be held by voting through faxes. Therefore, no written meeting minutes
were formulated. The Company will convene the following meetings of the Board of Directors and
the Board of Supervisors in strict accordance with the requirements of relevant system and record
the meeting minutes.
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Konka Group Co., Ltd. Annual Report 2021
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major
polluter by the environmental protection authorities.
√ Yes □ No
Nu
mbe Exc
Na Tota
Way r of Distribut essi
me Discharge l
Name of major of disc ion of Discharge Approved ve
of standards disc
pollutants disch harg discharg concentration total discharge disc
poll implemented harg
arge e e outlets harg
uter e
outl e
ets
PH 6-9; total
Total
Pollution copper≤0.3mg/L;
discharge
sources of COD≤50mg/L;
448,500
waste water: ammonia
tons/year;
PH, total Disc nitrogen≤8mg/L;
pollutant COD
copper, COD, harg total
Main 0.44 19.061250
ammonia nitro e of nitrogen≤15mg/L;
discharg GB 21900-2008 85 tons/year;
Xin gen, total stati total
e outlet Discharge mill ammonia nitro
gDa nitrogen, total onar phosphorus≤0.5mg/L Non
1 of the Standard For ion gen 3.0498
Hon phosphorus, y ; total e
waste Pollutants From tons tons/year;
gYe total cyanide, pollu cyanide≤0.2mg/L;
water Electroplating /yea total nitrogen
total nickel, tion total nickel≤0.1mg/L;
station r 32.9792
total iron, total sour total iron≤2mg/L;
tons/year;
aluminum, ces total
total
petroleum, aluminum≤2mg/L;
phosphorus
suspended petroleum≤2mg/L;
0.2082
solids suspended
tons/year
solids≤30mg/L
waste gas Disc Three on sulfuric acid Emission 2,98 Total
pollutants: harg the roof fume≤30mg/m3; Standard for 6,56 discharge:
Xin sulfuric acid e of of plant nitrogen Electroplating 0,00 2,986,560,000
gDa fume, stati 1, ten on oxide≤200mg/m3; Pollutants 0 standard Non
14
Hon hydrogen onar the roof hydrogen GB21900-2008 stan cube/year e
gYe chloride, y of plant chloride≤30mg/m3; Air Emission dard (note: the total
formaldehyde, pollu 2 and hydrogen Limits Table 5, cub discharge is
hydrogen tion one on cyanide≤0.5mg/m3; Emission e/ye not stated in
76
Konka Group Co., Ltd. Annual Report 2021
cyanide, sour the roof TVOC≤90mg/m3; standard of ar the latest
nitrogen oxide, ces of the benzene≤1mg/m3; Volatile Organic version of
ammonia, canteen toluene+xylene≤15m Compounds for national
benzene, g/m3; tin and its Printing Industry discharge
toluene+xylen compounds≤8.5mg/m DB44/815-2010; permit in
e, TVOC, tin 3; Guangdong Air 2021; two
and its PM(dust)≤120mg/m3 Pollutant exhaust
compounds, Emission towers were
PM(dust) Standard added in 2021;
DB44/27-2001 calculated
the Second based on air
Level Standard volume in
in the Second environmental
Period, Emission impact
standard for assessment)
Odor Pollutants
(GB
14554-1993)
Table 2 Standard
1. Discharge
standard of
1. Emission standard discharge
for pollution permit: Total
discharge certificate: Discharge discharge
copper≤0.5mg/L; Standard of 318, amount is
COD≤80mg/L; Electroplating 300 318,300
Bol
ammonia Water Pollutant tons tons/year;
uo Disc
nitrogen≤15mg/L; for /yea COD is
Kon harg
Wastewater Main total Electroplating r 25.464
ka e of
pollution: PH, discharg nitrogen≤20mg/L; DB44/1597-201 Not tons/year;
and stati
copper, COD, e outlet total 5 Table 1 Pearl e: ammonia
Bol onar Non
ammonia 1 of the phosphorus≤1mg/L; River Delta acco nitrogen is
uo y e
nitrogen, total waste 2. local emission Discharge rdin 4.775
Kon pollu
nitrogen, total water standard: Standard; 2. g to tons/year;
ka tion
phosphorus station copper≤0.5mg /L; Local discharge disc total nitrogen
Prec sour
COD≤30mg/L; standard: BFBH harg is 4.8
isio ces
ammonia [2019] No. 58 e tons/year.
n
nitrogen≤1.5mg/L; Document: per Note:
total COD, ammonia mit according to
nitrogen≤10mg/L; nitrogen, total the discharge
total phosphorus certificate
phosphorus≤0.3mg/L based on
"Environmental
Quality
77
Konka Group Co., Ltd. Annual Report 2021
Standards for
Surface Water
GB3838-2002 "
Category IV
water standard,
the total nitrogen
discharge
reaches 50% of
discharge limit
requirement of
the
corresponding
industry
Emission
Standard for
Electroplating
Pollutants
GB21900-2008
waste
Air Emission
gas pollutants: sulfuric acid
Limits Table 5,
sulfuric acid fume≤30mg/m3；
Guangdong Air
Bol fume, Six on nitrogen
Pollutant
uo hydrogen Disc the roof oxide≤200mg/m3；
Emission
Kon chloride, harg of plant hydrogen The total
Standard
ka formaldehyde, e of 1, chloride≤30mg/m3； discharge is
DB44/27-2001
and hydrogen stati fourteen TVOC≤90mg/m3； not stated in
the Second
Bol cyanide, onar on the benzene≤12mg/m3； the latest Non
20 Level Standard /
uo nitrogen oxide, y roof of methylbenzen≤40mg/ version of e
in the Second
Kon ammonia, be pollu plant 2 m3； national
Period, Emission
ka nzene, tion and one dimethylbenzene≤70 discharge
standard for
Prec methylbenzene sour in mg/m3；tin and its permit in 2020
Odor Pollutants
isio , TVOC, tin ces sewage compounds≤8.5mg/m
(GB
n and its station 3；PM（dust）
14554-1993)
compounds, P ≤120mg/m3；oil
Table 2
M (dust), oil fume≤2mg/m3
Standard,
fume
Emission
standard of
cooking fume
(GB18483-2001
)
The construction of anti-pollution facilities and its operation situation
1. XingDa HongYe
All production equipment of Guangdong Xingda Hongye Electronics Co., Ltd. has been set up with
78
Konka Group Co., Ltd. Annual Report 2021
supporting environmental protection facilities according to the requirements of environmental
impact assessment. The discharge of wastewater, waste gas and noise as well as the disposal of all
solid wastes in the Company all met the standards during the Reporting Period.
The sewage treatment centre of Guangdong Xingda Hongye Electronics Co., Ltd. with an
investment of about RMB15 million was formally put into production in June 2007, and the
treatment capacity of the sewage treatment facility was 2,566 tons/day. After technical improvement
and expansion, the capacity increased to 2,900 tons/day with the treatment process remaining
unchanged. Currently, the sewage treatment facilities are functioning well and the main pollutant
discharge meets the discharge standards and environmental assessment standards. The pollutants are
discharged to Fushachong after being treated at the self-built sewage treatment station.
2. Boluo Konka and Boluo Konka Precision
All production equipment of Boluo Konka and Boluo Konka Precision has been reported for
environmental assessment, review and approval. The supporting environmental protection and
pollution control facilities have been designed by pollutant type and concentration and effectively
operated in a targeted manner. During the Reporting Period, the discharge standards were met in
terms of industrial waste water, exhaust and factory noise, and all industrial waste generated was
disposed of in compliance with environmental laws and regulations.
Boluo Konka was established in 2000. To manufacture single sided PCBs, it invested approximately
RMB 5 million in constructing a sewage treatment station without the biochemical treatment
function and featuring a discharge capacity of 300 tons per day. In 2007, Boluo Konka expanded its
factory by starting the Phase II project, which was submitted for environmental assessment as
Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project owner was
changed into Boluo Konka Precision). It spent about RMB 10 million on constructing the Phase II
sewage treatment station to add the biochemical treatment function with a discharge capacity of 800
tons per day.
In 2019, according to the requirements in the documents issued by Boluo County Ecology and
Environment Bureau, the two sewage treatment stations of Boluo Konka and Boluo Konka
Precision must be upgraded towards higher standards. Through comprehensive assessment of the
professional environmental protection company, it was decided that the sewage treatment stations of
the said companies be combined to meet the upgrading requirements. Boluo County Ecology and
Environment Bureau approved the combination of the discharge outlets of the aforementioned
companies, and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the
combination, the discharge capacity would reach 1,100 tons per day. The aforementioned
companies spent about RMB 20 million between 2019 and 2020 on upgrading the sewage treatment
stations towards higher standards, and added industrial advanced processes and treatment systems,
such as RO water treatment, Fenton oxidation and MBR films. After the technological
79
Konka Group Co., Ltd. Annual Report 2021
improvements and expansion, the sewage treatment reaches 2,200 tons per day (with a discharge
capacity of 1,100 tons per day) with a reuse rate of more than 60%. At present, the waste water
treatment facilities are operating in good conditions; the discharge of major pollutants meets the
discharge standards. After advanced treatment of the water reuse facilities, the water treated by the
sewage stations that meets the standards will be reused in the plants, while the remaining water will
be discharged to the municipal pipe network to be processed by the urban and rural water treatment
factory before being discharged to the Dongjiang River.
Environmental impact assessment and other environmental protection administrative licenses of the
construction project
1. XingDa HongYe
Guangdong Xingda Hongye Electronics Co., Ltd. obtained the approval from Zhongshan
Environmental Protection Bureau (ZHJ [2004] No. 61) for the operations and construction here in
2004. Subsequently, it obtained the documents of ZHJD [2008] No. 06250 and ZHJD [2010] No.
04469 respectively in 2008 and 2010. After the operations of its original project, Guangdong
Xingda Hongye Electronics Co., Ltd. passed the two phases of acceptance assessment, including the
Phase I acceptance assessment in 2008 (HY [2008] No. 02) and the Phase II acceptance assessment
in 2012 (ZHYBG [2012] No. 000092).
In December 2012, Guangdong Xingda Hongye Electronics Co., Ltd. commissioned Zhongshan
Research Institute of Environmental Protection Science to conduct the assessment of environmental
impact for the technical improvement and expansion project of Guangdong Xingda Hongye
Electronics Co., Ltd. On 31 December 2012, it obtained the approval document titled Reply to the
Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co., Ltd. (ZHJS (2012) No. 115) from Zhongshan
Environmental Protection Bureau. The document granted the approval for addition of the
production of six-layer PCB, eight-layer PCB and above and HDI boards and for reduction of the
production of single-sided PCB. After the technical improvement and expansion, the total
production capacity of single-sided PCB would be 200,000 m2/year, of double-sided PCB would be
250,000 m2/year, of four-layer PCB would be 300,000 m2/year, of six-layer PCB would be 200,000
m2/year, of eight-layer PCB and above would be 150,000 m2/year and of HDI boards would be
100,000 m2/year. In the project, while the original plating equipment and processes remained
unchanged, the brown oxide process was added to the original production process; all the increased
plating capacity would be outsourced. The technical improvement and expansion project was
commenced in 2013 and completed in January 2018. The commissioning was carried out from 10
February 2018 to 8 July 2018. The construction of the project complied with the requirements for
environmental impact assessment and met the criteria for the acceptance of environmental
protection for the completion of construction projects. In 2021, the Company renewed/changed the
80
Konka Group Co., Ltd. Annual Report 2021
state sewage permit, certificate No.: 91442000768405216J001P.
2. Boluo Konka and Boluo Konka Precision
In 2000, Boluo Konka obtained the approval from the Huizhou Municipal Ecology and
Environment Bureau (HSHJ [2000] No. 23). The project was completed and put into operation in
the same year. The pollutant discharge permit No. is 91441322721121283N001U.
In January 2007, Boluo Konka appointed Huizhou Institute of Environmental Sciences to conduct
the environmental impact assessement of the Boluo Konka Expansion Project. On February 8, 2007,
Boluo Konka received the Document of Approval for the Environmental Impact Report on the
Project of Boluo Konka Double Sided and Multi-Layer Boards (HSHJ [2007] No. J32). According
to the Document, approval was given to the addition of double sided and multi-layer circuit boards
in the project expansion. The production capacity for single sided circuit boards would reach 1
million square meters per year, and double sided and multi-layer circuit boards would reach
650,000 square meters per year after the project expansion. In addition, electroplating equipment
and process would be added in the expansion project. The construction of the project met the
environmental assessment requirements and satisfied the conditions for the environmental
protection in the project inspection and acceptance. The pollutant discharge permit was obtained in
the same year. The aforementioned project was later renamed as Boluo Konka Precision. In 2020,
Boluo Konka Precision obtained the national pollutant discharge permit with the permit No.
91441322799316208F001V.
Contingency plan for emergent environmental incident
1. XingDa HongYe
In strict accordance with requirements of laws, regulations and relevant documents, such as Law of
the People’s Republic of China on Emergency Response and Interim Measures on Environmental
Emergency Response Plan, Guangdong Xingda Hongye Electronics Co., Ltd. has established risk
prevention measures and emergency response plans, kept its emergency equipment in a normal state,
formulated the Contingency Plan for Emergent Environmental Incident, and put on records at
Zhongshan Environmental Protection Bureau, Guangdong Province, record No.: 4420002017044M.
In addition, the Company conducts a drill of major environmental pollution incident on its factory
to enhance its emergency response capabilities for emergent environmental pollution incidents.
Furthermore, Guangdong Xingda Hongye Electronics Co., Ltd. has built an emergency pool (which
is the comprehensive water tank in the sewage treatment station covering an area of 800m3) and set
up a fire pool (500m3 and located on Floor 1 of Factory Building No. 2), which serve as temporary
storage pools for exterior drainage or fire drainage to eradicate accidental discharge of wastewater
in the case of failed operation of the sewage transmission pipeline or fire accident due to outage or
other special circumstances. The sewage transmission pipeline has been equipped with
anti-corrosion and cathodic protection using anti-corrosion pipes and carbon steel pipes. Pursuant to
81
Konka Group Co., Ltd. Annual Report 2021
the new discharge standards, the related discharge pipeline has been modified and the production
department has been required to discharge strictly in accordance with discharge standards to cut the
costs of wastewater treatment. Different types of wastewater are normally and properly treated
through fine shunting. Personnel have been specially arranged to manage the chemical liquid
warehouse and exert reasonable control and requirements over the liquid discharge by the plant and
timely transportation of the liquid by suppliers; emergency tools such as protective masks, boots
and immiscible pumps have been equipped.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the
People's Republic of China, Interim Measures for the Management of Emergency Plans for
Unexpected Environmental Incidents, other related laws and regulations as well as the requirements
of relevant documents. They have established risk prevention measures and emergency plans, such
as Emergency Plan for Unexpected Environmental Incidents, and have their emergency equipment
run in a normal status. In addition, they have filed with Boluo County Branch of Ecology and
Environment Bureau in Huizhou, Guangdong and Huizhou Ecology and Environment Bureau
respectively with the file No. 441322-2020-0073-M and 441301-2021-004-M. They organize all
staff to conduct drills for major environmental pollution incidents every year to improve their
ability for the emergency response to unexpected environmental pollution incidents.
Boluo Konka and Boluo Konka Precision are well equipped with all necessary facilities for
emergency response to unexpected incidents, including an emergency response pool of industrial
waste water (500m3, under the ground of the sewage treatment station) and a firefighting reservoir
(300m3, located beside the staff dormitory building). In the event of an unexpected environmental
incident, such as leakage or failure of a waste water transporting pipe, the emergency response pool
will prevent any accident of industrial waste water; in the event of a fire safety accident, the
firefighting reservoir will be put into use. All departments are required to discharge pollutants
strictly in accordance with pollutant discharge standards to reduce the costs of waste water
treatment by properly and reasonably dividing solution and waste water discharged from the plants.
The chemical warehouses are managed by designated personnel, with standard control and
requirements over the loading and unloading of chemical products by suppliers. In terms of
emergency response supplies, a full set of emergency rescue tools are prepared, including gas masks,
acid and alkaline resistant boots, gloves, goggles, safety ropes, helmets, fire sand and submersible
pumps.
Environmental self-monitoring plan
1. XingDa HongYe
According to the requirements of the Environmental Protection Administration, Xingda Hongye
attaches great importance to environmental monitoring management. Thus, pursuant to the
82
Konka Group Co., Ltd. Annual Report 2021
Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises,
the Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co., Ltd. and the reply opinions for environmental impact
assessment, the Company has formulated the Environmental Self-Monitoring Plan and reported to
the municipal environmental protection bureau for approval and record. It implements online
monitoring for the PH, COD and ammonia nitrogen pollutants discharged in wastewater through
real-time monitoring and an automatic frequency of every two hours, entrusts the qualified
third-party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment, and
entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring.
All self-monitoring plan results will be reported and disclosed on public platforms on a periodic
basis.
In the case of normal production, the results will be updated on a daily basis, with online
monitoring data disclosed in real time and manual monitoring data disclosed on the Real time
publicity or every 2 hours after completion. Items monitored on a monthly basis will be disclosed
by the 10th day of the month. In the case of public holidays, the operation monitoring data for the
holiday period will be disclosed on the first working day after the holiday. The annual
self-monitoring report for the previous year will be disclosed at the end of January each year. In the
case of shutdown with days off, the number of days off will be indicated in the information bar and
related proofs will be submitted to the monitoring center of the municipal environmental bureau for
record. The results are disclosed on Guangdong Province Key Pollution Source Regulatory
Information Platform and on National Pollution Source Monitoring Information Management and
Sharing Platform for public monitoring.
2. Boluo Konka and Boluo Konka Precision
In line with the requirements of environmental departments, Boluo Konka and Boluo Konka
Precision attach great importance to environmental monitoring and management. Based on the
Measures for the Self-Monitoring and Information Publicity of Enterprises under National Key
Monitoring, Environmental Impact Report and the opinions stated in reply to the environmental
assessment, they have established the Environmental Self-Monitoring Plan of Enterprises and filed
a record with the municipal ecology and environment bureau. According to the plan, they have
installed an online monitoring system to monitor the PH value, total flow, COD, ammonia nitrogen
and total phosphorus of the waste water, and networked with the ecology and environment bureau.
They appoint a qualified third-party online monitoring equipment operation and maintenance
organization to perform regular maintenance of the automatic monitoring equipment and the
monitoring data networking equipment, and a qualified third-party monitoring organization to
perform the monitoring of the “three wastes”. All self-monitoring results will be reported and
83
Konka Group Co., Ltd. Annual Report 2021
published on public platforms and subject to public monitoring.
Administrative punishments received in the Reporting Period due to environmental issues
Name of the Impact on the
Remediation
company or production and
Penalty reason Violation situation Penalty result measures of the
subsidiary operation of the
Company
company Company
On 25 August
2021, the
Zhongshan City
Environmental
Monitoring Station
conducted legal
monitoring by In violation of the
sampling from the provisions of
wastewater Article 10 of the
discharged from Water Pollution
the total Prevention Law of
wastewater the People's
discharge outlet. Republic of China GuangDong
compared with the XingDa HongYe
The monitoring that "the pollutants
discretion standard Electronic Co.,
results showed in discharged
as stipulated in Ltd. spent RMB18
that the water shall not
Article 3, million on the
concentrations of exceed the
Paragraph 1, Item rectification of
pollutants in the Discharge
(2) in "Violation environmental
discharged Standards for
of the General protection and
wastewater were Water Pollutants
Provisions of wastewater project
abnormal, and the total This penalty did
Ecological in 2022. (At
including COD discharge control not cause
Environmental present, the
24.3 mg/L, total indicators of key production
Protection" of the construction unit
XingDa HongYe nitrogen 24.3 water pollutants as suspension or any
Quantitative has been
mg/L, and stipulated by the impact on normal
Criteria for determined, and
ammonia nitrogen. state or local production and
Administrative the application for
21.9 mg/L, which governments", and operation.
Penalty construction of the
exceeded the according to the
Discretionary of project is being
standard limits as provisions of
Zhongshan Bureau submitted. The
stipulated in Table Article 83 (2) of
of Ecology and project is expected
3 of the Emission the Water
Environment, a to be completed by
Standard of Pollution
fine of the end of July
Pollutants for Prevention Law of
RMB230,000 was 2022).
Electroplating GB the People's
imposed.
21900-2008 by 0.2 Republic of China,
times, 0.62 times, supported by the
and 1.74 times facts, nature,
respectively. The circumstances,
Zhongshan Bureau social hazard and
of Ecology and relevant evidence
Environment set of the violation,
up investigation
on the excessive
discharge of water
pollutants on
September 16,
2021.
Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co., Ltd. for
2021 was approximately RMB18 million, mainly used for the investment in Environmental
governance equipment and facilities, treatment of sewage, waste gas and solid waste, as well as the
84
Konka Group Co., Ltd. Annual Report 2021
maintenance and upgrading of environmental protection equipment.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision invested approximately RMB10.6708 million on
environmental protection in 2021 in total, mainly used for the daily operation and management of
waste water and gas as well as the maintenance and upgrading of equipment..
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□ Applicable √ Not applicable
Other Environmental Information
According to the examination by the Company, the Company and its other holding subsidiaries are
not key pollutant units. All have faithfully implemented the laws and regulations related to
environmental protection, such as Environmental Protection Law of the People's Republic of China,
Water Pollution Prevention and Control Law of the People's Republic of China, Law of the People's
Republic of China on the Prevention and Control of Atmospheric Pollution, Law of the People's
Republic of China on Prevention and Control of Pollution From Environmental Noise, Law of the
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Waste in the daily production and operation, without being punished for violations of laws and
regulations during the Reporting Period.
II Social Responsibility
The Company insists the principle of health, stability and sustainable development to benefit
shareholders and employees and satisfy customers. In pursuit of economic profits and protection of
shareholders’ profits, the Company is active in protecting legal rights of debtors and employees,
treating suppliers, customers and consumers in good faith, and participating in environmental
protection and community establishment for harmonious development of the Company and society.
1. To protect rights of shareholders and creditors
(1) The Company protects rights of shareholders
The Company insists protection of rights for all shareholders, especially equal status and legal
rights for medium and small shareholders, and make insurance of rights to be informed,
participation and vote.
The Company would perform all obligations of information disclosure to ensure timely, accurate
and complete information and strictly execute confidential system of registrar and insider
information to guarantee justice.
The Company pays attention to repay to shareholders, and insists mutual development with
investors. In the previous three years, the Company shares dividends with all shareholders. The
Company strict executes dividend policies regulated in Articles of Association. All cash dividends
comply with regulations in Articles of Association and requirements in shareholders’ conference.
(2) The Company protects rights of creditors
85
Konka Group Co., Ltd. Annual Report 2021
In full consideration of legal rights of creditors, the Company complies with strict business rules of
credit cooperation to guarantee legal rights of creditors. No damages upon rights of creditors
happened.
2. The Company performs responsibilities to suppliers and customers
(1) It is devoted to improve customer service quality.
The Company is insisting philosophy of customer orientation to strengthen customer service
management, service consciousness for employees, service levels and to protect rights for
customers. Through customer service hot-line, field visit and follow-up service, the Company has
set a good corporate image for customers.
(2) Be honest to suppliers
Following the principle of integrity and mutually beneficial cooperation, the Company keeps good
cooperative relations with suppliers at each level. The corporate principle is open, fair and impartial
to standardize procurement, protect suppliers’ legal rights and lay solid foundation for further
cooperation.
3. Be enthusiastic to social and public welfare undertakings
Based on the principle of appreciating and repaying the society, the Company has participated in all
kinds of activities for public welfare, cooperated with society, undertaken social responsibilities
actively and promoted harmonious development between enterprise and society.
4. Be responsible for employees
The Company insists the principle of people orientation to improve working environment, promote
occupational skills, provide opportunity and platform for development and growth and encourage
self upgradation and realization for employees. Mutual improvement for employees and enterprise
could be achieved.
(1) Be honest and law-abiding to protect legal rights for employees
The Company would strictly comply with laws and regulations in Labor Law and Labor Contract
Law to sign labor contract with employees with fair treatment in employment, payment, promotion,
training, demission and retirement. Also, the Company would pay all kinds of insurances and
housing fund for employees. Regular physical examination would be organized for each year. Any
problems found would require re-examination and consultation from a doctor.
The Company would improve living quality; enhance cohesive force and sense of belongings
through a series of safeguard measures.
(2) To protect occupational health for employees
The Company would establish and perfect training, safety assessment by security system to
guarantee the safety and occupational health for employees. On the other hand, by promotion of the
importance of safety, safety awareness would be rooted in the heart to make all employees abide by
safety standards and fully play subjective initiative in protecting self-occupational safety and
86
Konka Group Co., Ltd. Annual Report 2021
production safety.
(3) To promote occupational skills by diversified professional training
The Company has always paid great attention on diversified training for employees. On the one
hand, the Company would be meticulous in training of regular business and occupational skills and
carry out all requirements positively to improve professional levels by normal training management.
On the other hand, the Company would establish methods of self-training platform, training
instructor, theme training and lectures to provide colorful training activities. Besides the work,
professional and comprehensive quality would be fully promoted.
5. Be responsible for environment
The Company concerns about environmental changes and close relationships with environment by
creating low carbon economy in technical innovation, from green manufacturing, green products to
green industry circular economy. The Company would provide efforts in protecting global
ecological environment. In June 2012, subsidized products catalogue had been released jointly by
National Development and Reform Commission, Ministry of Industry and Information and Ministry
of Finance.
Subsequently, the Company would undertake all social responsibilities by improving strategic
management, sustainable development and enterprise economic efficiency. It would reattribute all
shareholders and would protect legal rights for creditors and employees. To be honest to suppliers
and customers, the Company would serve local economic development and participate in social
public welfare activities and environment protection. It would undertake all responsibilities in many
fields and make attributions to social, economic, and environmental sustainable development for a
socialism harmonious society.
III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural Revitalization
In 2021, the Company continued to actively purchase the agricultural and side-line products from
Tianzhu and Sansui counties in Guizhou Province under the "assistance by consumption" project,
and cumulatively purchased local agricultural products worth RMB2.57 million this year. In
September 2021, the Company officially launched the "Konka Digital Education Assistance
Programme" at Zhaitou Village Primary School in Sansui County, including a number of detailed
measures such as donation of multimedia hardware and deployment and implementation of online
teaching resources", which applied the achievements of scientific and technological innovation in
"hardware and software" of the Company to the practice in rural revitalization. In December 2021,
the Company invited teachers and students from Zhaitou Primary School in Sansui County,
Qiandongnan Miao and Dong Autonomous Prefecture, Guizhou Province to attend a three-day
growth and study tour in Shenzhen, and held a public service children's art exhibition in the OCT
Contemporary Art Center Hua the Art Salon.
87
Konka Group Co., Ltd. Annual Report 2021
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s De Facto Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting Period
or Ongoing at the Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Where there Had Been an Earnings Forecast for an Asset or Project and the Reporting
Period Was still within the Forecast Period, Explain why the Forecast Has Been Reached for
the Reporting Period.
□ Applicable √ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
on the Financial Statements
□ Applicable √ Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□ Applicable √ Not applicable
VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting
Errors
√ Applicable □ Not applicable
On 7 December 2018, the Ministry of Finance (MOF) issued Revision and Issuance of the
Accounting Standard for Business Enterprises No. 21: Lease (C.K. [2018] No. 35) (hereinafter
referred to as "new lease standards"). According to the requirements of the Ministry of Finance,
those enterprises that are listed both at home and abroad and those enterprises that are listed
overseas and adopt the International Financial Reporting Standards or the Accounting Standards for
88
Konka Group Co., Ltd. Annual Report 2021
Business Enterprises for preparation of financial statements should implement the standards from 1
January 2019; the other enterprises that adopt the Accounting Standards for Business Enterprises
should implement the standards from 1 January 2021. The Company has implemented the new lease
standards since 1 January 2021, and according to the accumulated number of impacts based on the
execution of the new lease standard, the Company will adjust the retained income and the amount
of relevant items in the financial statements at the beginning of the first year of execution, and will
not adjust information for comparable periods. This change in accounting policies will not exert a
significant impact on the Company's financial position, operational results and cash flow.
VII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
Please refer to 6. Changes in the Scope of Consolidated Financial Statements for the Reporting
Period of 2. Revenue and Costs of IV Core Business Analysis in Part III Operating Performance
Discussion and Analysis of this Report for details.
VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor ShineWing Certified Public Accountants LLP
The Company’s payment to the domestic independent auditor
250
(RMB’0,000)
How many consecutive years the domestic independent auditor
3 years
has provided audit service for the Company
Names of the certified public accountants from the domestic
Tang Qimei, Liu Jianhua
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
1 year
have provided audit service for the Company
Name of the overseas independent auditor (if any) N/A
The Company’s payment to the overseas independent auditor
0
(RMB’0,000) (if any)
How many consecutive years the overseas independent auditor
N/A
has provided audit service for the Company (if any)
Names of the certified public accountants from the overseas
independent auditor writing signatures on the auditor’s report N/A
(if any)
How many consecutive years the certified public accountants
N/A
have provided audit service for the Company (if any)
Indicate by tick mark whether the independent auditor was changed for the Reporting Period
□ Yes √ No
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
89
Konka Group Co., Ltd. Annual Report 2021
√ Applicable □ Not applicable
The Company appointed ShineWing Certified Public Accountants LLP as the internal control
auditor in 2021 with RMB0.8 million of payment for the internal control audit.
IX Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
X Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Major Legal Matters
√ Applicable □ Not applicable
Invol
ved
Index to
amo Discl
Provis Decisions and Execution of disclosed
General information unt Progress osure
ion effects decisions informati
(RM date
on
B’0,
000)
Because of a dispute over an
advertising contract, Shenzhen The
The first-instance
E2info Network Technology defendan
judgment has come
t has
Co., Ltd., a subsidiary to the into effect, and the
entered
Company has won
Company, filed a lawsuit the The defendant is http://ww
the case. Based on
bankrupt 2020
against Hangzhou Explore 758. the principle of proceeding with w.cninfo.
cy
No prudence, the -09-1
Culture Media Co., Ltd. with 11 liquidatio the liquidation com.cn/n
Company has
n stage 9
the court of Nanshan district, accrued procedure. ew/index
and is
corresponding
Shenzhen and claimed declaring
impairment reserves
credit of
payment of the arrears in accordance with
bankrupt
accounting policies.
principal and liquidated cy.
damages
The court
of second The first instance
Due to dispute arisen form a
instance trial is ongoing.
sales contract, the Company’s
designate Based on the
subsidiary Konka Huanjia
d the principle of
filed a lawsuit to request http://ww
court of prudence, the 2020
Dalian Jinshunda Material 9,38 w.cninfo.
No first Company has Pending -09-1
Recycling Co., Ltd., Huanjia 3.08 com.cn/n
instance accrued 9
Group, Wang Bingde, Zhang ew/index
to corresponding
Xueyin, Wang Renping to
continue impairment reserves
return the advance payment
the trial in accordance with
and pay liquidated damages.
of this accounting policies.
case.
90
Konka Group Co., Ltd. Annual Report 2021
The first instance
trial is ongoing.
Based on the
principle of
The court
prudence, the
of second
Due to dispute arisen form a Company has
instance
sales contract, the Company’s accrued
designate
subsidiary Konka Huanjia corresponding
d the
filed a lawsuit to request impairment reserves http://ww
court of 2020
Dalian Xinjie Renewable 9,38 in accordance with w.cninfo.
No first Pending -09-1
Resources Co., Ltd., Huanjia 3.08 accounting com.cn/n
instance 9
Group, Wang Bingde, Zhang policies.oing. Based ew/index
to
Xueyin, Wang Renping to on the principle of
continue
return the advance payment prudence, the
the trial
and pay liquidated damages. Company has
of this
accrued
case.
corresponding
impairment reserves
in accordance with
accounting policies.
The court
of second The first instance
Due to dispute arisen form a
instance trial is ongoing.
sales contract, the Company’s
designate Based on the
subsidiary Konka Huanjia
d the principle of
filed a lawsuit to request http://ww
court of prudence, the 2020
Dalian Tianhao Renewable 2,30 w.cninfo.
No first Company has Pending -09-1
Resources Co., Ltd., Huanjia 7.90 com.cn/n
instance accrued 9
Group, Wang Bingde, Zhang ew/index
to corresponding
Xueyin, Wang Renping to
continue impairment reserves
return the advance payment
the trial in accordance with
and pay liquidated damages.
of this accounting policies.
case.
Due to dispute arisen form a The court The first instance
sales contract, the Company’s of second trial is ongoing.
subsidiary Konka Huanjia instance Based on the
filed a lawsuit to request designate principle of
http://ww
Huanjia Mingtai (Dalian) d the prudence, the 2020
3,30 w.cninfo.
Renewable Resources Co., No court of Company has Pending -09-1
2.64 com.cn/n
Ltd., Huanjia Group, Wang first accrued 9
ew/index
Bingde, Zhang Xueyin, Wang instance corresponding
Renping to return the advance to impairment reserves
payment and pay liquidated continue in accordance with
damages. the trial accounting policies.
91
Konka Group Co., Ltd. Annual Report 2021
of this
case.
The court
Due to dispute arisen form a of second The first instance
sales contract, the Company’s instance trial is ongoing.
subsidiary Konka Huanjia designate Based on the
filed a lawsuit to request d the principle of
http://ww
Lankao Shunjia Renewable court of prudence, the 2020
3,35 w.cninfo.
Resources Recycling Co., No first Company has Pending -09-1
8.80 com.cn/n
Ltd., Huanjia Group, Wang instance accrued 9
ew/index
Bingde, Zhang Xueyin, Wang to corresponding
Renping to return the advance continue impairment reserves
payment and pay liquidated the trial in accordance with
damages. of this accounting policies.
case.
The first instance
trial is ongoing.
Based on the
principle of
The court
prudence, the
Due to dispute arisen form a of second
Company has
sales contract, the Company’s instance
accrued
subsidiary Konka Huanjia designate
corresponding
filed a lawsuit to request d the
impairment reserves http://ww
Henan Shunhenghui court of 2020
3,33 in accordance with w.cninfo.
Renewable Resources No first Pending -09-1
7.29 accounting com.cn/n
Recycling Co., Ltd., Huanjia instance 9
policies.oing. Based ew/index
Group, Wang Bingde, Zhang to
on the principle of
Xueyin, Wang Renping to continue
prudence, the
return the advance payment the trial
Company has
and pay liquidated damages. of this
accrued
case.
corresponding
impairment reserves
in accordance with
accounting policies.
Due to dispute arisen form a The court The first instance
sales contract, the Company’s of second trial is ongoing.
subsidiary Konka Huanjia instance Based on the
http://ww
filed a lawsuit to request designate principle of 2020
3,35 w.cninfo.
Henan Jiaxin Renewable No d the prudence, the Pending -09-1
8.09 com.cn/n
Resources Recycling Co., court of Company has 9
ew/index
Ltd., Huanjia Group, Wang first accrued
Bingde, Zhang Xueyin, Wang instance corresponding
Renping to return the advance to impairment reserves
92
Konka Group Co., Ltd. Annual Report 2021
payment and pay liquidated continue in accordance with
damages. the trial accounting policies.
of this
case.
The court
Due to dispute arisen form a of second The first instance
sales contract, the Company’s instance trial is ongoing.
subsidiary Konka Huanjia designate Based on the
filed a lawsuit to request d the principle of
http://ww
Henan Shengxiang Renewable court of prudence, the 2020
2,92 w.cninfo.
Resources Recycling Co., No first Company has Pending -09-1
2 com.cn/n
Ltd., Huanjia Group, Wang instance accrued 9
ew/index
Bingde, Zhang Xueyin, Wang to corresponding
Renping to return the advance continue impairment reserves
payment and pay liquidated the trial in accordance with
damages. of this accounting policies.
case.
Executed, and based
Because of a dispute over a Repayme
purchase and sales contract, on the principle of
the Company's subsidiary, nt of
prudence, the
Konka Huanjia Environmental debts http://ww
Technology Co., Ltd., sued Company has made 2020
Dalian Guangxin 3,13 with w.cninfo.
No corresponding Closed -09-1
Environmental Protection 7.20 property com.cn/n
Equipment Technology provision for 9
Development Co., Ltd., has been ew/index
impairment
requiring it to return the complete
payment for equipment and according to
pay the liquidated damages. d.
accounting policies.
Because of a dispute over a
logistics contract, Hefei
Anluda Logistics Co., Ltd.
sued the Company's
subsidiary, Anhui Konka http://ww
Tongchuang Electrical Applying 2020
Appliances Co., Ltd. with the 1,28 Applying for the Applying for the w.cninfo.
No for the -09-1
people's court of Nanqiao 2.80 protest protest com.cn/n
District, Huzhou, requiring it protest 9
to return the performance ew/index
bond, pay the transportation
fee that's already incurred and
interest, as well as undertake
the legal cost.
Because of a dispute over a
purchase and sales contract, http://ww
Zhao Yonghong sued the 2020
Company's subsidiary, Konka 805. w.cninfo.
No Closed Closed Closed -09-1
Huanjia Environmental 74 com.cn/n
Technology Co., Ltd., 9
requiring it to pay the payment ew/index
for goods.
Because of a dispute over real The case The case is being 2021 http://ww
8,24
rights granted by way of No is being filed as a different Pending -06-0 w.cninfo.
2.85
security, the Company's filed as a case. 1 com.cn/n
93
Konka Group Co., Ltd. Annual Report 2021
subsidiary, Henan Xinfei different ew/index
Refrigeration Appliances Co., case.
Ltd., sued Chuangfu Business
Square Real Estate
Development (Huizhou) Co.,
Ltd., requiring it to exercise
the real rights granted by way
of security.
The court
Due to dispute arisen form a of second The first instance
sales contract, the Company’s instance trial is ongoing.
subsidiary Konka Huanjia designate Based on the
filed a lawsuit to request d the principle of
http://ww
Zhejiang Jiade Renewable court of prudence, the 2021
3,56 w.cninfo.
Resources Recycling Co., No first Company has Pending -06-0
2.89 com.cn/n
Ltd., Huanjia Group, Wang instance accrued 1
ew/index
Bingde, Zhang Xueyin, Wang to corresponding
Renping to return the advance continue impairment reserves
payment and pay liquidated the trial in accordance with
damages. of this accounting policies.
case.
The court
Due to dispute arisen form a of second The first instance
sales contract, the Company’s instance trial is ongoing.
subsidiary Konka Huanjia designate Based on the
filed a lawsuit to request d the principle of
http://ww
Zhejiang Zhijie Renewable court of prudence, the 2021
3,56 w.cninfo.
Resources Recycling Co., No first Company has Pending -06-0
2.89 com.cn/n
Ltd., Huanjia Group, Wang instance accrued 1
ew/index
Bingde, Zhang Xueyin, Wang to corresponding
Renping to return the advance continue impairment reserves
payment and pay liquidated the trial in accordance with
damages. of this accounting policies.
case.
Due to dispute arisen form a The court The first instance
sales contract, the Company’s of second trial is ongoing.
subsidiary Konka Huanjia instance Based on the
filed a lawsuit to request designate principle of http://ww
2021
Zhejiang Xinkai Renewable 3,56 d the prudence, the w.cninfo.
No Pending -06-0
Resources Recycling Co., 2.89 court of Company has com.cn/n
1
Ltd., Huanjia Group, Wang first accrued ew/index
Bingde, Zhang Xueyin, Wang instance corresponding
Renping to return the advance to impairment reserves
payment and pay liquidated continue in accordance with
94
Konka Group Co., Ltd. Annual Report 2021
damages. the trial accounting policies.
of this
case.
The court
Due to dispute arisen form a of second The first instance
sales contract, the Company’s instance trial is ongoing.
subsidiary Konka Huanjia designate Based on the
filed a lawsuit to request d the principle of
http://ww
Henan Huanjia Chengxin court of prudence, the 2021
3,35 w.cninfo.
Environmental Protection No first Company has Pending -06-0
8.80 com.cn/n
Technology Co., Ltd., Huanjia instance accrued 1
ew/index
Group, Wang Bingde, Zhang to corresponding
Xueyin, Wang Renping to continue impairment reserves
return the advance payment the trial in accordance with
and pay liquidated damages. of this accounting policies.
case.
The first instance
trial is ongoing.
Based on the
principle of
The court
prudence, the
Due to dispute arisen form a of second
Company has
sales contract, the Company’s instance
accrued
subsidiary Konka Huanjia designate
corresponding
filed a lawsuit to request d the
impairment reserves http://ww
Henan Xincheng Renewable court of 2021
3,35 in accordance with w.cninfo.
Resources Recycling Co., No first Pending -06-0
8.80 accounting com.cn/n
Ltd., Huanjia Group, Wang instance 1
policies.oing. Based ew/index
Bingde, Zhang Xueyin, Wang to
on the principle of
Renping to return the advance continue
prudence, the
payment and pay liquidated the trial
Company has
damages. of this
accrued
case.
corresponding
impairment reserves
in accordance with
accounting policies.
Because of a dispute over real
rights granted by way of
The case
security, the Company's http://ww
is being The case is being 2021
subsidiary, Anhui Konka 3,14 w.cninfo.
No filed as a filed as a different Pending -06-0
Electronic Co., Ltd., sued 2.64 com.cn/n
different case. 1
Huang Ruirong, requiring it to ew/index
case.
exercise the real rights granted
by way of security.
95
Konka Group Co., Ltd. Annual Report 2021
Because of a dispute over real
rights granted by way of
security, the Company's
subsidiary, Henan Xinfei The case
http://ww
Refrigeration Appliances Co., is being The case is being 2021
2,80 w.cninfo.
Ltd., sued Chuangfu Business No filed as a filed as a different Pending -06-0
1.94 com.cn/n
Square Real Estate different case. 1
ew/index
Development (Huizhou) Co., case.
Ltd., requiring it to exercise
the real rights granted by way
of security.
The court
Due to dispute arisen form a of second The first instance
sales contract, the Company’s instance trial is ongoing.
subsidiary Konka Huanjia designate Based on the
filed a lawsuit to request d the principle of
http://ww
Henan Guozheng court of prudence, the 2021
2,09 w.cninfo.
Environmental Protection No first Company has Pending -06-0
0 com.cn/n
Technology Co., Ltd., Huanjia instance accrued 1
ew/index
Group, Wang Bingde, Zhang to corresponding
Xueyin, Wang Renping to continue impairment reserves
return the advance payment the trial in accordance with
and pay liquidated damages. of this accounting policies.
case.
Note: Courts or arbitration bodies ruled in favor of the Company in the following cases which are currently under enforcement. Details of these cases
can be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2019-63), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97), the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48), the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) and the Company's periodic reports: 1. As
matured notes were failed to be accepted, the Company has filed a lawsuit with the court to request China Energy Electric Fuel Co., Ltd., China
Energy (Shanghai) Enterprise Co., Ltd.., Shanghai Nengping industrial Co., Ltd., and Shenzhen Qianhai Baoying Factoring Co., Ltd. to pay the bill
and the corresponding interest to the Company; 2. As matured notes were failed to be accepted, the Company has filed a lawsuit with the court to
request Shanghai Huaxin International Group Co., Ltd. and Tianjin International Trade Petrochemical Co., Ltd. to pay the bill and the corresponding
interest to the Company; 3. As matured notes were failed to be accepted, the Company has filed a lawsuit with the court to request Shanghai Huaxin
International Group Co., Ltd. Qingdao Bonded Zhongshe International Trading Co., Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co.,
Ltd. to pay the bill and the corresponding interest to the Company; 4. As matured notes were failed to be accepted, the Company has filed a lawsuit
with the court to request Hefei Huajun Trading Co., Ltd. and Wuhan Jialian Agricultural Technology Development Co., Ltd. to pay the bill and the
corresponding interest to the Company; 5. Due to dispute arisen from a logistics contract, the Company’s subsidiary Anhui Konka filed a lawsuit to
request the freight forwarder Shanghai Triangle Link Logistics Co., Ltd. Shenzhen Branch to make compensation; 6. Due to contract dispute, the
Company’s subsidiary Shenzhen Nianhua applied for arbitration to request the respondent Fang Xianglong and Jiang Yan to make compensation for
corresponding annual profit and fund possession cost; 7. Due to payment dispute, the Company’s subsidiary Hong Kong Konka applied for an
arbitration to Shenzhen Court of International Arbitration to request the respondent Makena Electronic (Hong Kong) to pay for goods and liquidated
damages; 8. Because of a dispute over capital increase, the Company's subsidiary, Shenzhen Konka Investment Holding Co., Ltd., applied for
arbitration with the Shenzhen Court of International Arbitration (SCIA), requesting the respondents, Elion Resources Group and Elion Ecological Co.,
96
Konka Group Co., Ltd. Annual Report 2021
Ltd., to perform the repurchase obligation; 9. Because of dishonor of notes receivable, Konka Factoring filed a lawsuit with the court, requiring Tahoe
Group Co., Ltd., Fuzhou Taijia Industrial Co., Ltd. and Xiamen Lianchuang Microelectronics Co., Ltd. to make the payment of the note and the
corresponding interest to Konka Factoring; 10. Because of dishonor of notes receivable, the Company filed a lawsuit with the court, requiring Wuhan
Jialian Agricultural Technology Development Co., Ltd. to make the payment of the note and the corresponding interest 11. Due to condominium
ownership dispute, the owners' committee of Jingyuan Building filed a lawsuit to request Zhongfang Group Nanfang Real Estate Co., Ltd. to make
supplementary payment of maintenance fund. Zhongfang Group Nanfang Real Estate Co., Ltd. submitted a defense on the ground that the Company
jointly developed Jingyuan Building, and the Company was filed as the defendant.
The following cases have been disclosed in temporary announcements and periodic reports and there is no further progress. Details of these cases can
be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2020-97) and the Announcement on Accumulated Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) and the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) and the Company's
periodic reports: 1. The customer of Hong Kong Konka, H-BUSTER SAO PAULO INDUSTRIAE COMERCIO S.A (Brazil) was insolvent, and
obtained the approval of the judicial reorganization application of Cotia Third Civil Court of the Court of Sao Paulo, Brazil in May 2013. As the
creditor of H-BUSTER, Hong Kong Konka filed the debt declaration documents, and in August 2014, the amount confirmed of debt was USD2.78
million. 2. Due to the Jiangxi Xinxin Jian’an Engineering Co., Ltd. (hereinafter referred to as the “Jiangxi Xinxin”), Jiangxi Shanshi Technology
Development Co., Ltd. (hereinafter referred to as the “Jiangxi Shanshi”), Jiangxi Zhongyi Decoration Materials Co., Ltd. (hereinafter referred to as
the “Jiangxi Zhongyi”) failed to repay the loan and its interest of China Great Wall AMC Jiangxi Branch (hereinafter referred to as the “Great Wall
Jiangxi Branch”), the Great Wall Jiangxi Branch sued to the court, and required Jiangxi Xinxin, Jiangxi Shanshi, Jiangxi Zhongyi to repay RMB300
million with RMB108,000 liquidated damages, and RMB13.65 million of interest. Meanwhile, 9 guarantors including Jiangxi Konka, Xinfeng
Microcrystalline and Nanocrystal are required to undertake joint liability guaranty. The judgment of first instance required that Jiangxi Xinxin, Jiangxi
Zhongyi and Jiangxi Shanshi shall repay the principal, interest and liquidated damages to Great Wall Jiangxi Branch and the guarantors bear the joint
liability for satisfaction to the debts. The defendants have appealed against the first instance judgment. Later, the court of second instance ruled that
the case should be returned to the court of first instance for retrial. 3. Due to the dispute of sales contract, Wumart Stores, Inc. sued the Beijing Branch
of Wumart to the court of Shijingshan District of Beijing, and requested the Beijing Branch to return the prepayment of goods. 4. Due to payment
dispute, the Company’s subsidiary Anhui Electrical Appliance applied for an arbitration to Chuzhou Arbitration Commission to request the respondent
Makena Electronic (Shenzhen) to make guarantee. 5. Due to contract dispute, the Company filed a lawsuit with Zhengzhou Intermediate People’s
Court to request Henan Radio and Television Network Co., Ltd. to pick up goods and make payment and liquidated damages according to the contract.
6. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Dongguan Konka Electronic Co., Ltd., filed a lawsuit with the
People's Court of Nanshan District of Shenzhen, requesting Dongguan Gaoneng High Polymer Materials Co., Ltd., Wang Dong, Shenzhen Xinlian
Xingyao Trade Co., Ltd., Shenzhen Jinchuan Qianchao Network Technology Co., Ltd., Puning Junlong Trade Co., Ltd., and Huang Zhihao to pay the
overdue loan and the corresponding liquidated damages. 7. Because of a dispute over a contract, the Company's subsidiary, Shenzhen
Konka Unifortune Technology Co., Ltd. sued Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology Co., Ltd.,
Shenzhen Hongyao Dingsheng Investment Management Limited Partnership, Shenzhen Xiangrui Yingtong Investment Management
Co., Ltd., Luo Jingxia, Luo Zongwu, Luo Zongyin, Luo Zaotong and Luo Saiyin, requiring them to make the payment of goods and
liquidated damages; 8. Because of a dispute over an agency agreement, the Company's subsidiary, Henan Frestec Refrigeration
Appliance Co., Ltd., sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Lin Yuanqin,
Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., and Chuangfu Commerce & Trade Plaza Real Estate Development
(Huizhou) Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages
and priority shall be given to the payment for the secured assets; 9. Because of a dispute over an agency agreement, the Company's
subsidiary, Henan Frestec Refrigeration Appliance Co., Ltd. sued Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Shantou
Meisen Technology Co., Ltd., Lin Yuanqin, Huang Ruirong, Chuangfu Commercial & Trade Plaza Real Estate Development
(Huizhou) Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages
and priority shall be given to the payment for the secured assets; 10. Because of a dispute over an Agency Agreement, the Company's
subsidiary, Anhui Konka Electronics Technology Co., Ltd. sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic
97
Konka Group Co., Ltd. Annual Report 2021
Electronics Co., Ltd., Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., requesting to terminate the contract
and requesting them to return the payment of goods and liquidated damages and priority shall be given to the payment for the secured
assets; 12. Because of a dispute over an Agency Agreement, the Company's subsidiary, Hainan Konka Material Technology Co., Ltd.
sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Jiangsu Huadong Hardware Zone
Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages and
priority shall be given to the payment for the secured assets; 13. Due to the infringement of trademark and unfair competition, the
Company sued Fu'an Xinshang Electronics Co., Ltd., Fujian Zhaoguan Industry and Trade Co., Ltd., Jinhua Kangjia Medical
Apparatus Factory, and Wang Jun, requesting an order to cease the infringement and an claim for compensation for losses; 14.
Because of a dispute over repurchase, the Company sued Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo Zongwu, Shenzhen Yaode
Technology Co., Ltd., requesting the payment of share repurchase and interest; 15. Because of a dispute over a contract, Makena
Electronic (Shenzhen) Co., Ltd. filed a lawsuit, requesting the Company and its subsidiary Shenzhen Konka Electronics Technology
Co., Ltd. to pay the price of goods and the interest for late payment.
XII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable √ Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
Ove Obtai
As % of Appro
Rela r nable Index
total ved
tions Type Tran Total the marke to
Prici value of transa Meth
hip of Specific sacti value appr t price Discl discl
Related ng all ction od of
with trans transactio on (RMB ove for osure osed
party princ same-ty line settle
the actio n pric ’0,000 d same- date infor
iple pe (RMB ment
Com n e ) line type matio
transact ’0,000
pany or transa n
ions )
not ctions
Und
Purc
OCT er
hase Property
Enterpris the
of managem Nego Mar
es Co., sam 24
com
e ent, tiate ket 7,855. 10,00
Ltd and modi 1.13% Not Cash N/A Mar.
actu utilities, d pric 32 0
its ties 2021
al office price e
subsidiar and
cont leases
ies servi
rolle
ces
r
OCT Und Sale TVs, Nego Mar 24
4,613. 10,00
Enterpris er s of intelligent tiate ket 0.63% Not Cash N/A Mar.
03 0
es Co., the good terminals, d pric 2021
98
Konka Group Co., Ltd. Annual Report 2021
Ltd and sam s etc. and price e
its e and related
subsidiar actu servi services
al ces
ies
cont
rolle
r
12,46 20,00
Total -- -- -- -- -- -- -- --
8.35 0
Large-amount sales return in detail N/A
The Company has published the Forecasting Public Notice on Routine Related-party
Give the actual situation in the
Transaction for Y2021 on Securities Times, Shanghai Securities News, and China
Reporting Period (if any) where an
Securities Journal as well as the Internet website designated by CSRC
estimate had been made for the total
http://http://www.cninfo.com.cn/new/index on 24 March 2021. In the Reporting Period,
value of continuing related-party
the basis for pricing, transaction price, transaction amount and settlement methods of
transactions by type to occur in the
raw materials purchased by the Company were basically in accordance with the
Reporting Period
forecast. The total amount was RMB124.6835 million.
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
√Applicable □ Not applicable
Refer to 7. Other Major Related-Party Transactions of this section for details.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for
non-operating purposes.
√ Yes □ No
Credits receivable with related parties:
Whether
there is Increased Recovere Interest in
occupatio Beginnin in the d in the the Ending
Related
Related Forming n on g balance Reporting Reporting Interest Reporting balance
relations
party reason non-opera (RMB’0, Period Period rate Period (RMB’0,0
hip
ting 000) (RMB’0, (RMB’0, (RMB’0, 00)
capital or 000) 000) 000)
not
99
Konka Group Co., Ltd. Annual Report 2021
Subsidia
Yibin Demand
ry of
OCT of
controlli
Sanjiang business Not 7,500.00 0 7,500.00 5.70% 184.35 0
ng
Properties developm
sharehol
Co., Ltd. ent
der
Chuzhou
Subsidia
Kangjin Demand
ry of
Health of
controlli
Industry business Not 16,084.74 0 311.10 7.00% 1,121.43 15,773.64
ng
Developm developm
sharehol
ent Co., ent
der
Ltd.
Effects of credits with
related parties on the No effect to the normal operation of the Company. Other shareholders of Yibin OCT Sanjiang
Company’s operating Properties Co., Ltd. and Chuzhou Kangjin Health Industry Development Co., Ltd. offer financial
results and financial assistance under the same conditions in accordance to their shareholding ratio.
conditions
Liabilities payable with related parties:
Increased Recovered Interest in
Beginnin in the in the the Ending
Related
Related Forming g balance Reporting Reporting Interest Reporting balance
relationshi
party reason (RMB’0, Period Period rate Period (RMB’0,00
p
000) (RMB’0,0 (RMB’0,0 (RMB’0,0 0)
00) 00) 00)
2,406.00 2,406.00 4.04% 20.52
8,700.00 8,700.00 4.04% 74.20
50,000.00 48,909.00 4.04% 783.25 1,091.00
50,000.00 50,000.00 4.04% 1,694.56
50,000.00 50,000.00 4.04% 1,655.28
The
Controllin
OCT Company
g 50,000.00 50,000.00 4.04% 1,576.72
Enterprises applies
shareholde
Co., Ltd. entrusted 50,000.00 50,000.00 4.04% 1,408.39
r
loan to it
50,000.00 50,000.00 4.04% 1,099.78
40,000.00 40,000.00 4.04% 579.07
100,000.00 4.04% 942.67 100,000.00
20,000.00 4.04% 103.24 20,000.00
50,000.00 50,000.00 0.00%
Effects of liabilities with The Company applies entrusted loan from OCT Enterprises Co., Ltd. which meets the needs of the
related parties on the company's existing business development and reduces the financing cost.
100
Konka Group Co., Ltd. Annual Report 2021
Company’s operating
results and financial
conditions
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any
other finance business with any related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit
from and was not involved in any other finance business with any related parties.
7. Other Major Related-Party Transactions
√Applicable □ Not applicable
(1) Provide security limit to Shareholding Related Company: The Proposal on Providing Security
Limit to Yibin OCT Sanjiang Real Estate Co., Ltd. was reviewed and passed at the 40th Meeting of
the Ninth Board of Directors held on March 22, 2021, and the 2020 Shareholders' General Meeting
on April 19, 2021, which decided that the Company will continue to provide Yibin OCT Sanjiang
Real Estate Co., Ltd. with a security limit of RMB400 million at the shareholding ratio with a term
of three years, after the security limit, reviewed and passed at the 2018 Third Extraordinary General
Meeting, is due. Yibin OCT Sanjiang Real Estate Co., Ltd. will use this security limit to apply for a
loan with the bank. Other shareholders of Yibin OCT Sanjiang Real Estate Co., Ltd. will provide
security to it at their respective shareholding ratios.
(2) Providing advertising services to OCT Group: At the 42nd Meeting of the Ninth Session of the
Board of Directors on 28 May 2021, the Company considered and approved the Proposal on
Providing Advertising Services to OCT Group. According to the decision, the Company would
provide OCT Group (inclusive of its subsidiaries) with advertising services at intelligent terminals
with a service transaction price of no more than RMB100 million.
(3) Transfer 70% of the equity in Shenzhen Yipingfang Network Technology Co., Ltd.: The
Proposal on Transfer of Some of Equity in Shenzhen Yipingfang Network Technology Co., Ltd. was
reviewed and approved at the 44th Meeting of the Ninth Board of Directors of the Company held on
August 2, 2021 and later at the 2nd Extraordinary General Meeting of 2021 held on August 18,
2021, which decided that the 70% of the equity in Shenzhen Yipingfang Network Technology Co.,
Ltd. held by the Company will be publicly transferred at the state-owned property right exchange.
The Company's controlling shareholder, Overseas Chinese Town Holdings Company (OCT Group)
(or its controlling shareholder) might participate in the delisting of some of the equity in Shenzhen
Yipingfang Network Technology Co., Ltd. In December 2021, a consortium of 17 transferees
including Shenzhen Qiaoyi Digital Technology Co., Ltd., a wholly-owned subsidiary of the
101
Konka Group Co., Ltd. Annual Report 2021
Company's controlling shareholder OCT Group Co., Ltd., won the bid for 70% equity of Shenzhen
E2info Network Technology Co., Ltd. according to the rules on transaction of state-owned property
rights. Shenzhen Qiaoyi Digital Technology Co., Ltd. won 35% equity of Shenzhen E2info Network
Technology Co., Ltd.
(4) Leasing properties from related parties: The Company held the 49th meeting of the ninth Board
of Directors on 5 November 2021. The meeting reviewed and approved the Proposal on Leasing
Properties from Related Parties, and decided to lease the property located in Gongrencun Road,
Qingshan District, Wuhan. The total area of the property is no more than 116,097 square meters and
the rent does not exceed RMB197 million.
(5) Issuing shares and purchasing assets with cash and raising supporting funds and related
transactions: On 10 September 2021, proposals including the Proposal on the Company's Issuance
of Shares and Cash Payment and Raising Supporting Funds and Related Transactions were
reviewed and approved on the 46th meeting of the ninth Board of Directors of the Company, which
proposed to issue shares to 11 shareholders of Ganzho Minggao Technology Co., Ltd., including
Shenzhen MingGao Investment Holding Co., Ltd., to purchase 100% equity of Ganzho MingGao
Technology Co., Ltd. they are holding; to issue shares and pay cash to 33 shareholders of Jiangsu
Highstar Battery Manufacturing Co., Ltd., including Jiangsu Highstar Group Co., Ltd., to purchase
100% equity of Jiangsu Highstar Battery Manufacturing Co., Ltd. they are holding; and to issue
shares to the Company's controlling shareholder OCT Group Co., Ltd. to raise supporting funds
(hereinafter referred to "transaction"). Since the disclosure of this transaction plan, the Company
and related parties have been advancing and implementing the various tasks of this transaction in an
orderly manner. However, as no agreement was reached upon part of the core clauses between the
Company and the shareholders of Jiangsu Highstar Battery Manufacturing Co., Ltd., in order to
protect the rights and interests of all shareholders, especially minority shareholders, and the
interests of the Company, the Company terminated the transaction on 4 March 2022 after thorough
research.
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on Providing Guarantee Line for Joint Stock Company and
24 March 2021
Related-party Transaction
Announcement on Providing Advertising Services to OCT Group and
1 June 2021
Related-party Transaction
http://www.cninfo.com.c
Announcement on Listing Transfer of Some Equity of Shenzhen E2info
3 August 2021 n/new/index
Network Technology Co., Ltd.
Plan on of Acquisition of Assets by Share Issuance and Cash Payment and
11 September 2021
Raising Supporting Funds and Related Transactions
Announcement on Leasing Property to Related Party 6 November 2021
102
Konka Group Co., Ltd. Annual Report 2021
Announcement on Termination of Acquisition of Assets by Share Issuance
7 March 2022
and Cash Payment and Raising Supporting Funds and Related Transactions
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
√ Applicable □ Not applicable
Note to leases
No significant leases in the Reporting Period.
The rent of Konka Development Building has received RMB59,572,715.58 in the Reporting Period.
The project bringing about gains or losses as over 10% of total profit in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Havin Guarant
Disclosure Actual Type Collat Counter Term
Line of Actual g ee for a
date of the guarant of eral guarant of
Obligor guarante occurren expire related
guarantee line ee guara (if ee (if guara
e ce date d or party or
announcement amount ntee any) any) ntee
not not
Yibin OCT
Joint-l
Sanjiang 2019-09 Three
2018-09-19 40,000 14,000 iabilit No Not Not Yes
Properties Co., -29 years
y
Ltd.
Kunshan
Kangsheng Joint-l
2019-09 Three
Investment 2018-09-19 24,500 24,500 iabilit No Not Not Yes
-23 years
Development y
Co., Ltd.
Joint-l Other Five
Econ 2021-08
2018-09-19 55,800 24,000 iabilit No shareho mont Not Not
Technology -11
y lder of hs
103
Konka Group Co., Ltd. Annual Report 2021
Joint-l Econ
2021-01 One
3,000 iabilit No Technol Not Not
-29 year
y ogy
provide
Joint-l
2021-03 sa One
5,000 iabilit No Not Not
-24 counter year
y
guarant
Joint-l
2021-06 ee for One
8,800 iabilit No Not Not
-08 the year
y
Compa
Joint-l ny for
2021-06 One
5,000 iabilit No 49% of Not Not
-18 year
y the
Joint-l guarant
2021-06 ee line One
10,000 iabilit No Not Not
-28 year
y
Jiangxi Xinxin
Joint-l
Jian’an 2016-12
10,000 10,000 iabilit No Not Not Not Not
Engineering -12
y
Co., Ltd.
Jiangxi
Zhongyi Joint-l
2016-12
Decoration 10,000 10,000 iabilit No Not Not Not Not
-12
Materials Co., y
Ltd.
Jiangxi Shanshi
Joint-l
Technological 2016-12
10,000 10,000 iabilit No Not Not Not Not
Development -12
y
Co., Ltd.
Total approved line for such
Total actual amount of such guarantees in the
guarantees in the Reporting 40,000 55,800
Reporting Period (A2)
Period (A1)
Total approved line for such
Total actual balance of such guarantees at the end of
guarantees at the end of the 189,500 124,300
the Reporting Period (A4)
Reporting Period (A3)
Guarantees provided between the Company and subsidiaries
Disclosure Guaran
date of the Line Actual Colla Counter Term tee for
Actual Having
guarantee of guarant Type of teral guarante of a
Obligor occurrence expired
line guaran ee guarantee (if e (if guarant related
date or not
announce tee amount any) any) ee party or
ment not
Anhui 2017-07-3 90,00 2020-08-06 3,000 Joint-liabil No Not One Not Not
104
Konka Group Co., Ltd. Annual Report 2021
Tongchua 1, 0 ity year
ng 2018-05-2 and a
3 and half
2018-09-1
Joint-liabil One
9 2021-01-21 5,000 No Not Not Not
ity year
Joint-liabil One
2021-02-25 4,500 No Not Not Not
ity year
Joint-liabil One
2021-05-12 3,500 No Not Not Not
ity year
Joint-liabil One
2021-07-16 6,000 No Not Not Not
ity year
Joint-liabil One
2021-10-28 3,000 No Not Not Not
ity year
One
Joint-liabil year
2020-12-28 20,000 No Not Not Not
ity and a
2017-03-3
Hong half
1 and 355,0
Kong
2018-10-3 00 Joint-liabil One
Konka 2021-09-08 11,000 No Not Not Not
1 ity year
Joint-liabil One
2021-02-26 9,564 No Not Not Not
ity year
Boluo
2018-03-3 Joint-liabil Three
Konka 5,000 2020-08-19 2,480 No Not Not Not
1 ity years
Precision
Electroni Joint-liabil One
2021-10-18 7,000 No Not Not Not
cs 2018-09-1 350,0 ity year
Technolo 9 00 Joint-liabil One
2021-11-05 50,000 No Not Not Not
gy ity year
2018-09-1 Joint-liabil One
2021-02-08 5,000 No Not Not Not
Donggua 9 and 90,00 ity year
n Konka 2021-03-2 0 Joint-liabil Ten
2021-06-23 80,000 No Not Not Not
4 ity years
Joint-liabil Other Two
2020-11-12 5,800 No Not Not
ity sharehol years
Joint-liabil der of Three
2020-12-25 2,000 No Not Not
ity XingDa years
XingDa 2018-09-1 10,00
Joint-liabil HongYe Two
HongYe 9 0 2021-05-31 1,250 No Not Not
ity provides years
a
Joint-liabil Two
2021-05-31 750 No counter Not Not
ity years
guarante
105
Konka Group Co., Ltd. Annual Report 2021
e for the
Compan
y for
49% of
the
guarante
e line
Joint-liabil Three
2020-11-06 10,000 No Not Not
ity Other years
Joint-liabil sharehol One
2021-06-26 6,000 No der of Not Not
ity year
Jiangxi
Joint-liabil Three
2020-09-29 10,000 No Konka Not Not
ity years
provides
Joint-liabil a Two
2020-12-21 5,000 No Not Not
Jiangxi 2018-10-3 60,00 ity counter years
Konka 1 0 Joint-liabil guarante Three
2019-06-26 5,500 No Not Not
ity e for the years
Compan
Joint-liabil Three
2019-10-30 6,500 No y for Not Not
ity years
49% of
Joint-liabil the Two
2020-03-20 990 No Not Not
ity guarante years
Joint-liabil e line Three
2020-12-30 1,000 No Not Not
ity years
Joint-liabil Other Three
2020-05-19 5,000 No Not Not
ity sharehol years
der of
Two
Xinfeng
Joint-liabil years
2020-05-29 3,479 No Microcr Not Not
ity and a
ystalline
half
provides
Joint-liabil Three
Xinfeng 2020-12-08 2,100 No a Not Not
2019-03-3 25,00 ity years
Microcry counter
0 0
stalline Joint-liabil guarante One
2021-12-27 7,200 No Not Not
ity e for the year
Compan
y for
Joint-liabil 49% of One
2021-06-18 7,200 No Not Not
ity the year
guarante
e line
Jiangxi 2019-03-3 45,00 Joint-liabil Other Three
2019-06-26 10,000 No Not Not
High 0 0 ity sharehol years
106
Konka Group Co., Ltd. Annual Report 2021
Transpare Joint-liabil der of Three
2020-01-08 5,000 No Not Not
nt ity Jiangxi years
Substrate High
Joint-liabil Three
2019-12-20 5,000 No Transpa Not Not
ity years
rent
Joint-liabil Two
2020-01-08 5,000 No Substrat Not Not
ity years
e
Joint-liabil provides Two
2020-03-20 990 No Not Not
ity a years
Joint-liabil counter Two
2020-05-29 5,975 No guarante Not Not
ity years
e for the
Compan
y for
Joint-liabil 49% of Three
2020-07-14 6,000 No Not Not
ity the years
guarante
e line
2018-03-3
Sichuan 1 and 65,00 Joint-liabil Three
2019-03-18 4,000 No No Not Not
Konka 2021-03-2 0 ity years
4
Joint-liabil Two
Ningbo 2020-10-15 6,000 No No Not Not
2020-06-0 18,00 ity years
Kanghanr
6 0 Joint-liabil One
ui 2021-07-12 6,000 No No Not Not
ity year
Other
sharehol
der of
Yibin
Kangrun
provides
a
Yibin 2020-10-2 10,00 Joint-liabil counter Four
2020-11-13 10,000 No Not Not
Kangrun 4 0 ity guarante years
e for the
Compan
y for
33% of
the
guarante
e line
Telecom 50,00
2017-3-31 2021-04-30 7,500 Joint-liabil No No One Not Not
municatio 0
107
Konka Group Co., Ltd. Annual Report 2021
n ity year
Technolo
gy
Other One
Joint-liabil sharehol year
2020-11-25 10,000 No Not Not
ity der of and a
Anhui half
Konka
Joint-liabil One
2021-03-25 20,000 No provides Not Not
ity year
a
Joint-liabil One
Anhui 2017-03-3 110,00 2021-04-02 5,500 No counter Not Not
ity year
Konka 1 0 guarante
Joint-liabil e for the One
2021-04-25 12,000 No Not Not
ity Compan year
Joint-liabil y for Ten
2021-08-10 28,000 No 22% of Not Not
ity years
the
Joint-liabil guarante Five
2021-10-29 7,000 No Not Not
ity e line years
Three
Konka 2021-03-2 50,00 Joint-liabil years
2021-05-24 20,000 No No Not Not
Circuit 4 0 ity and a
half
Mobile
2017-03-3 Joint-liabil One
Interconn 5,000 2021-08-11 5,000 No No Not Not
1 ity year
ection
Liaoyang
2021-03-2 10,00 Joint-liabil One
Kangshu 2021-12-23 2,000 No No Not Not
4 0 ity year
n
Konka 2021-03-2 30,00 Joint-liabil One
2021-07-12 20,000 No No Not Not
Xinyun 4 0 ity year
Total actual amount of such
Total approved line for such guarantees in the Reporting
393,600 guarantees in the Reporting Period 339,964
Period (B1)
(B2)
Total actual balance of such
Total approved line for such guarantees at the end of the
2,210,881 guarantees at the end of the 490,778
Reporting Period (B3)
Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure Guaran
Line Actual Colla Counter Term
date of the Actual Having tee for
of guarant Type of teral guarante of
Obligor guarantee occurrence expired a
guaran ee guarantee (if e (if guarant
line date or not related
tee amount any) any) ee
announce party or
108
Konka Group Co., Ltd. Annual Report 2021
ment not
Sichuan 2018-05-3 14,00 Joint-liabil Seven
2018-05-28 14,000 No No Not Not
Konka 0 0 ity years
Hous
Sichuan 2021-12-0 28,77 e Seven
2021-12-03 28,772 Mortgage No Not Not
Konka 4 2 prope years
rty
Land
s,
house
Anhui
prope
Electrical 13,50 Mortgage, Three
2020-07-03 13,500 rty, No Not Not
Applianc 0 pledge years
equit
e
y
intere
sts
Hous
Boluo
12,44 e Two
Konka 2021-07-06 12,449 Mortgage No Not Not
9 prope years
Precision
rty
Hous
Boluo
e One
Konka 500 2021-06-28 500 Mortgage No Not Not
prope year
Precision
rty
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees
12,949 12,949
Period (C1) in the Reporting Period (C2)
Total approved line for such guarantees at the end of the Total actual balance of such guarantees
69,221 69,221
Reporting Period (C3) at the end of the Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period Total actual guarantee amount in the
446,549 408,713
(A1+B1+C1) Reporting Period (A2+B2+C2)
Total actual guarantee balance at the
Total approved guarantee line at the end of the Reporting
2,469,602 end of the Reporting Period 684,299
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as %
75.24%
of the Company’s net assets
Of which:
Balance of guarantees provided for shareholders, actual controller and their related parties (D) 38,500
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 565,799
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 229,535
Total of the three amounts above (D+E+F) 684,299
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) N/A
109
Konka Group Co., Ltd. Annual Report 2021
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees:
None
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB’0,000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Bank financial 61,990.62 0 0 0
Self-owned
products
Total 61,990.62 0 0 0
High-risk entrusted wealth management with significant single amount or low security and poor
liquidity:
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which
may cause impairment for entrusted wealth management
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
√ Applicable □ Not applicable
(I) Non-public offering of corporate bonds: Currently, the non-public offering of corporate bonds of
RMB2.3 billion was fully issued by three tranches on 9 January 2021, 21 May 2021, and 9 July
2021, respectively. The public offering of corporate bonds of RMB2.7 billion has been reviewed at
the Shareholders' General Meeting of Konka (hereinafter referred to as the "Company"), and
relevant matters are being promoted as planned.
(II) Initiation and establishment of funds: The total units of the Oriental-Konka Industry M&A Fund
worth RMB1,001,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500
million, accounting for 49.95% of the total units. By the date of this report, Shenzhen Konka
110
Konka Group Co., Ltd. Annual Report 2021
Investment Holding Co., Ltd. has contributed RMB482,270,000. The fund invested in Jiangxi
Yahua Electronic Materials Co., Ltd., Genew Technologies Co., Ltd., etc. The total units of the
Kunshan-CITIC-Konka Emerging Industry Development Investment Fund worth
RMB1,006,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500 million,
accounting for 49.7018% of the total units. By the date of this report, Shenzhen Konka Investment
Holding Co., Ltd. has contributed RMB43,810,000. The fund invested in UNIONTECH, Hercules
Microsystems (HME), etc. The total units of the Tongxiang Wuzhen Jiayu Digital Economic
Industry Fund worth RMB500 million. Shenzhen Konka Investment Holding Co., Ltd. contributed
RMB200 million, accounting for 40% of the total units. By the date of this report, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB120,000,000. The fund invested in Feidi
Technology (Shenzhen) Co., Ltd., CASICLOUD, etc. The Yibin Kanghui Electronic Information
Industry Equity Investment Fund, the Yancheng Kangyan Industry Investment Fund, and the
Chongqing Kangxin Equity Investment Fund have been filed with the Asset Management
Association of China (AMAC). The total units of Yibin Kanghui Electronic Information Industry
Equity Investment Fund worth RMB1,002,000,000. Shenzhen Konka Investment Holding Co., Ltd.
and Shenzhen Konka Capital Equity Investment Management Co., Ltd. contributed RMB401
million, accounting for 40.02% of the total units. By the issuance date of this report, Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management
Co., Ltd. have contributed RMB104 million. The fund invested in Talkweb Information System Co.,
Ltd. and Shenzhen E2info Network Technology Co., Ltd. The total units of Yancheng Kangyan
Industry Investment Fun worth RMB3,000 million. Shenzhen Konka Investment Holding Co., Ltd.
and Shenzhen Konka Capital Equity Investment Management Co., Ltd. contributed
RMB1201,500,000, accounting for 40.05% of the total units. By the date of this report, Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management
Co., Ltd. have contributed RMB217,370,000. The fund invested in Anhui Zhongdian Xingfa and
Xinlong Co., Ltd., Shenzhen E2info Network Technology Co., Ltd., Xiyue New Media No.2
(Zhuhai) Investment Fund Partnership (limited partnership). The total units of Chongqing Kangxin
Equity Investment Fund Partnership (limited partnership) worth RMB2 billion. Shenzhen Konka
Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management Co.,
Ltd. contributed RMB1 billion, accounting for 50.00% of the total units. By the date of this report,
Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment
Management Co., Ltd. have contributed RMB101 million. The fund invested in Shenzhen E2info
Network Technology Co., Ltd.
(III) Disclosure index of significant information
Announce Link on
Date Title Page on newspaper
ment No. http://w
111
Konka Group Co., Ltd. Annual Report 2021
ww.cninf
o.com.cn
Announcement on Issuance Results of Non-public Offering Securities Times B48, Shanghai Securities http://ww
2021-01 2021-1-9
of Corporate Bonds (Tranche I) in 2021 News 11 etc. w.cninfo.
com.cn/n
Indicative Announcement on Preparation for Transfer of
Securities Times B15, Shanghai Securities ew/index
2021-02 2021-1-14 17% of Equity in Yantai Kangyun Industry Development
News 22 etc.
Co., Ltd.
2020 Result Forecast Securities Times B22, Shanghai Securities
2021-03 2021-1-30
News 67 etc.
Announcement on Progress of Security for Controlling Securities Times B22, Shanghai Securities
2021-04 2021-1-30
Company News 67 etc.
Announcement on Transfer of 17% of Equity in Yantai Securities Times B13, Shanghai Securities
2021-05 2021-2-10
Kangyun Industry Development Co., Ltd. News 72 etc.
Announcement on Signing Project Admission Agreement
Securities Times B13, Shanghai Securities
2021-06 2021-2-10 with Xi'an International Port District Management
News 72 etc.
Committee
Announcement on Resignation of Chairman of Board of Securities Times B54, Shanghai Securities
2021-07 2021-2-25
Supervisors News 38 etc.
Notice on Convening 2021 First Extraordinary General Securities Times B11, Shanghai Securities
2021-08 2021-2-27
Meeting News 33 etc.
Announcement on Providing Financial Assistance to Yantai
Securities Times B11, Shanghai Securities
2021-09 2021-2-27 Kangyun Industry Development Co., Ltd. at Shareholding
News 33 etc.
Ratio
Announcement on Some Accounting Policy Changes Securities Times B11, Shanghai Securities
2021-10 2021-2-27
News 33 etc.
Announcement on Resolutions of 11th Meeting of the Securities Times B11, Shanghai Securities
2021-11 2021-2-27
Ninth Board of Supervisors News 33 etc.
Announcement on Resolutions of 39th Meeting of the Securities Times B11, Shanghai Securities
2021-12 2021-2-27
Ninth Board of Directors News 33 etc.
Announcement on Progress of Security for Controlling Securities Times B11, Shanghai Securities
2021-13 2021-2-27
Company News 33 etc.
Announcement on Transfer of 39% of Equity in Shanghai Securities Times B23, Shanghai Securities
2021-14 2021-3-2
Konka Green Technology Co., Ltd. News 49 etc.
Announcement on Resolutions of 2021 First Extraordinary Securities Times B40, Shanghai Securities
2021-15 2021-3-16
General Meeting News 81 etc.
Announcement on Resolutions of 12th Meeting of the Securities Times B40, Shanghai Securities
2021-16 2021-3-16
Ninth Board of Supervisors News 81 etc.
2021-17 2021-3-20 Announcement on Receipt of Government Grant by Securities Times B10, Shanghai Securities
112
Konka Group Co., Ltd. Annual Report 2021
Wholly Owned Subsidiary News 73 etc.
Announcement on Progress of Security for Wholly Owned Securities Times B87, Shanghai Securities
2021-18 2021-3-20
Subsidiary News 73 etc.
Announcement on Resolutions of 13th Meeting of the Securities Times B94, Shanghai Securities
2021-19 2021-3-24
Ninth Board of Supervisors News 105 etc.
Announcement on Expected Routine Connected Securities Times B93, Shanghai Securities
2021-20 2021-3-24
Transactions in 2021 News 105 etc.
Announcement on Provision of Reserves for Asset Securities Times B94, Shanghai Securities
2021-21 2021-3-24
Impairment for 2020 News 105 etc.
Securities Times B94, Shanghai Securities
2021-22 2021-3-24 Announcement on Plan of Profit Distribution for 2020
News 105 etc.
Announcement on Engagement of Annual Financial Securities Times B95, Shanghai Securities
2021-23 2021-3-24
Statement Auditor and Internal Control Auditor for 2021 News 105 etc.
Securities Times B94, Shanghai Securities
2021-24 2021-3-24 Announcement on External Security
News 105 etc.
Announcement on Providing Security Limit to and
Securities Times B95, Shanghai Securities
2021-25 2021-3-24 Conducting Connected Transaction with Shareholding
News 106 etc.
Company
Securities Times B93, Shanghai Securities
2021-26 2021-3-24 Notice on Convening 2020 Shareholders' General Meeting
News 106 etc.
Securities Times B93, Shanghai Securities
2021-27 2021-3-24 Abstract of 2020 Annual Report
News 105 etc.
2021-28 2021-3-24 2020 Annual Report
Announcement on Resolutions of 40th Meeting of the Securities Times B93, Shanghai Securities
2021-29 2021-3-24
Ninth Board of Directors News 106 etc.
Indicative Announcement on Preparation for Transfer of Securities Times B123, Shanghai Securities
2021-30 2021-3-27
51% of Equity in Shenzhen Kangxin Real Estate Co., Ltd. News 56 etc.
Announcement on Progress of Security for Controlling Securities Times B123, Shanghai Securities
2021-31 2021-3-27
Subsidiary News 56 etc.
Securities Times B27, Shanghai Securities
2021-32 2021-3-30 Announcement on Holding 2020 Online Result Release
News 120 etc.
Announcement on Progress of Transfer of 17% of Equity Securities Times B27, Shanghai Securities
2021-33 2021-4-1
in Yantai Kangyun Industry Development Co., Ltd. News 72 etc.
Securities Times B120, Shanghai Securities
2021-34 2021-4-10 Announcement on Security for Controlling Company
News 137 etc.
Announcement on Progress of Transfer of 39% of Equity Securities Times B068, Shanghai Securities
2021-35 2021-4-14
in Shanghai Konka Green Technology Co., Ltd. News 54 etc.
113
Konka Group Co., Ltd. Annual Report 2021
Securities Times B26, Shanghai Securities
2021-36 2021-4-15 2021Q1 Result Forecast
News 136 etc.
Announcement on Resolutions of 2020 Shareholders' Securities Times B100, Shanghai Securities
2021-37 2021-4-20
General Meeting News 152 etc.
Securities Times B56, Shanghai Securities
2021-38 2021-4-21 Announcement on Correction of 2020 Annual Report
News 118 etc.
Indicative Announcement on Preparation for Transfer of Securities Times B56, Shanghai Securities
2021-39 2021-4-21
Some of Equity in ECON TECH News 118 etc.
Announcement on Resolutions of 41st Meeting of the Securities Times B25, Shanghai Securities
2021-40 2021-4-29
Ninth Board of Directors News 152 etc.
Announcement on Transfer of 51% of Equity in Shenzhen Securities Times B25, Shanghai Securities
2021-41 2021-4-29
Kangxin Real Estate Co., Ltd. News 152 etc.
Securities Times B25, Shanghai Securities
2021-42 2021-4-29 Main Body of 2021Q1 Report
News 152 etc.
2021-43 2021-4-29 Full Text of 2021Q1 Report
Announcement on Signing Cooperation Framework
Securities Times B26, Shanghai Securities
2021-44 2021-5-7 Agreement with Shenzhen Electronic Industries
News 88 etc.
Association (SZEIA)
Announcement on Issuance Results of Non-public Offering Securities Times B40, Shanghai Securities
2021-45 2021-5-22
of Corporate Bonds (Tranche II) in 2021 News 104 etc.
Announcement on Completion of Private Equity Fund
Filing and Registration of Chongqing Kangxin Securities Times B18, Shanghai Securities
2021-46 2021-5-25
Semiconductor Industry Fund whose Establishment is News 72 etc.
Participated in by the Company
Securities Times B35, Shanghai Securities
2021-47 2021-5-27 Announcement on Distribution of 2020 Annual Equity
News 81 etc.
Securities Times B21, Shanghai Securities
2021-48 2021-6-1 Announcement on Accumulative Lawsuits and Arbitrations
News 49 etc.
Announcement on Resolutions of 42nd Meeting of the Securities Times B21, Shanghai Securities
2021-49 2021-6-1
Ninth Board of Directors News 49 etc.
Announcement on Providing Advertising Services to and
Securities Times B21, Shanghai Securities
2021-50 2021-6-1 Conducting Connected Transaction with Overseas Chinese
News 49 etc.
Town Holdings Company (OCT Group)
Securities Times B21, Shanghai Securities
2021-51 2021-6-1 Announcement on Security for Controlling Company
News 49 etc.
Announcement on Progress of Transfer of 51% of Equity Securities Times B21, Shanghai Securities
2021-52 2021-6-18
in Shenzhen Kangxin Real Estate Co., Ltd. News 96 etc.
2021-53 2021-6-19 Announcement on Reply to Inquiry Letter on 2020 Annual Securities Times B18, Shanghai Securities
114
Konka Group Co., Ltd. Annual Report 2021
Report from Shenzhen Stock Exchange News 38 etc.
Announcement on Progress of Security for Controlling Securities Times B50, Shanghai Securities
2021-54 2021-7-6
Company News 38 etc.
Announcement on Issuance Results of Non-public Offering Securities Times B33, Shanghai Securities
2021-55 2021-7-10
of Corporate Bonds (Tranche III) in 2021 News 56 etc.
Indicative Announcement on Preparation for Transfer of Securities Times B20, Shanghai Securities
2021-56 2021-7-21 Some of Equity in Shenzhen E2info Network Technology
Co., Ltd. News 56 etc.
Announcement on Progress of Security for Controlling Securities Times B13, Shanghai Securities
2021-57 2021-7-27
Subsidiary News 65 etc.
Announcement on Resolutions of the 44th Meeting of the Securities Times B109, Shanghai Securities
2021-58 2021-8-3
ninth Board of Directors News 121 etc.
Announcement on the Plan of the Company's Public Securities Times B109, Shanghai Securities
2021-59 2021-8-3
Offering of Corporate Bonds to professional investors News 121 etc.
Announcement on Transfer of Some of Equity in Shenzhen Securities Times B109, Shanghai Securities
2021-60 2021-8-3
E2info Network Technology Co., Ltd. News 121 etc.
Announcement on Transfer of Some of Equity in Shandong Securities Times B109, Shanghai Securities
2021-61 2021-8-3
Econ Technology Co., Ltd. News 121 etc.
Notice on Convening 2021 Second Extraordinary General Securities Times B109, Shanghai Securities
2021-62 2021-8-3
Meeting News 121 etc.
Announcement on Progress of Security for Controlling Securities Times B46, Shanghai Securities
2021-63 2021-8-10
Subsidiary News 97 etc.
Announcement on Resolutions of 2021 Second Securities Times B14, Shanghai Securities
2021-64 2021-8-19
Extraordinary General Meeting News 81 etc.
Announcement on Progress of Security for Controlling Securities Times B14, Shanghai Securities
2021-65 2021-8-19
Subsidiary News 81 etc.
Announcement on Semi-annual Provision of Reserves for Securities Times B27, Shanghai Securities
2021-66 2021-8-28
Asset Impairment for 2021 News 33 etc.
Securities Times B27, Shanghai Securities
2021-67 2021-8-28 Summary of 2021 Interim Report
News 33 etc.
Securities Times B27, Shanghai Securities
2021-68 2021-8-28 2021 Interim Report
News 33 etc.
Announcement on Trading Suspension Due to Preparation Securities Times B18, Shanghai Securities
2021-69 2021-8-31
for Issuance of Shares to Purchase Assets News 198 etc.
Announcement on Approval of the Joint-stock Company's Securities Times B65, Shanghai Securities
2021-70 2021-9-3 Initial Public Offering by the Growth Enterprise Market
Listing Committee of Shenzhen Stock Exchange News 96 etc.
Announcement on Progress of Trading Suspension Due to Securities Times B25, Shanghai Securities
2021-71 2021-9-7
Preparation for Issuance of Shares to Purchase Assets News 72 etc.
115
Konka Group Co., Ltd. Annual Report 2021
Announcement on Resolutions of the 46th Meeting of the Securities Times B10, Shanghai Securities
2021-72 2021-9-11
ninth Board of Directors News 56 etc.
Announcement on Resolutions of 17th Meeting of the Securities Times B10, Shanghai Securities
2021-73 2021-9-11
Ninth Board of Supervisors News 56 etc.
Announcement on the General Risk Warnings for the Securities Times B10, Shanghai Securities
2021-74 2021-9-11
Restructuring News 56 etc.
Announcement on the Shareholdings of the Top Ten Major
shareholders and the Top Ten Unlimited Share Holders on Securities Times B10, Shanghai Securities
2021-75 2021-9-11
the Previous Trading Day Before Trading Suspension Due News 56 etc.
to Preparation for Asset Restructuring
Prompt Announcement on the Disclosure of Restructuring Securities Times B10, Shanghai Securities
2021-76 2021-9-11
Plan and Trading Resumption of the Company's Stock News 56 etc.
Announcement on Progress of Security for Wholly Owned Securities Times B22, Shanghai Securities
2021-77 2021-9-16
Subsidiary News 22 etc.
Announcement on the Progress of Asset Acquisition by
Issuance of Shares and Cash Payment, as Well as Raising Securities Times B43, Shanghai Securities
2021-78 2021-10-9
Supporting Funds and the Progress of Related Transaction News 44 etc.
Plan After Disclosure
Securities Times B18, Shanghai Securities
2021-79 2021-10-13 Announcement on Resignation of the Company Director
News 68 etc.
Notice on Convening 2021 Third Extraordinary General Securities Times B32, Shanghai Securities
2021-80 2021-10-15
Meeting News 92 etc.
Announcement on Resolutions of the 47th Meeting of the Securities Times B32, Shanghai Securities
2021-81 2021-10-15
ninth Board of Directors News 92 etc.
Announcement on Participation in Auction for Land Use Securities Times B32, Shanghai Securities
2021-82 2021-10-15
Rights News 92 etc.
Announcement on Results Forecast for the First Three Securities Times B32, Shanghai Securities
2021-83 2021-10-15
Quarters in 2021 News 92 etc.
Announcement on Progress of Security for Controlling Securities Times B32, Shanghai Securities
2021-84 2021-10-15
Company News 92 etc.
Announcement on the Progress of Participation in Auction Securities Times B50, Shanghai Securities
2021-85 2021-10-16
for Land Use Rights News 60 etc.
Announcement on Progress of Security for Controlling Securities Times B170, Shanghai Securities
2021-86 2021-10-26
Company News 124 etc.
Securities Times B299, Shanghai Securities
2021-87 2021-10-28 2021Q3 Report
News 360 etc.
Announcement on Resolutions of 2021 Third Securities Times B24, Shanghai Securities
2021-88 2021-11-2
Extraordinary General Meeting News 60 etc.
Announcement on Progress of Transfer of Some of Equity Securities Times B69, Shanghai Securities
2021-89 2021-11-6
in Shandong Econ Technology Co., Ltd. News 17 etc.
116
Konka Group Co., Ltd. Annual Report 2021
Announcement on Resolutions of 49th Meeting of the Securities Times B69, Shanghai Securities
2021-90 2021-11-6
ninth Board of Directors News 17 etc.
Securities Times B69, Shanghai Securities
2021-91 2021-11-6 Announcement on Leasing Property to Related Party
News 17 etc.
Announcement on Transfer of Equity in Shandong Econ Securities Times B69, Shanghai Securities
2021-92 2021-11-6
Technology Co., Ltd. and Capital Increase News 17 etc.
Announcement on the Progress of Asset Acquisition by
Issuance of Shares and Cash Payment, as Well as Raising Securities Times B34, Shanghai Securities
2021-93 2021-11-9
Supporting Funds and the Progress of Related Transaction News 52 etc.
Plan After Disclosure
Securities Times B24, Shanghai Securities
2021-94 2021-11-19 Announcement on Withdrawing Financial Assistance
News 73 etc.
Announcement on Participating in the Online Collective
Reception Day Activity of Investors of Listed Companies Securities Times B23, Shanghai Securities
2021-95 2021-11-25 in 2021 "Communicating and Transferring Value,
Communicating and Creating Good Ecology" of Shenzhen News 84 etc.
Municipality
Announcement on Resolutions of 50th Meeting of the Securities Times B43, Shanghai Securities
2021-96 2021-11-26
ninth Board of Directors News 49 etc.
Announcement on Participation in Auction for Land Use Securities Times B43, Shanghai Securities
2021-97 2021-11-26
Rights News 49 etc.
Announcement on Controlling Subsidiary Providing Loans Securities Times B43, Shanghai Securities
2021-98 2021-11-26
to Shareholders According to Percentage of Equity Interest News 49 etc.
Announcement on Progress of Transfer of Some of Equity Securities Times B43, Shanghai Securities
2021-99 2021-11-26
in Shandong Econ Technology Co., Ltd. News 49 etc.
Announcement on Completion of Industrial and Securities Times B37, Shanghai Securities
2021-100 2021-11-27 Commercial Registration of Changes for Capital Increase
of Shandong Econ Technology Co., Ltd. News 93 etc.
Securities Times B66, Shanghai Securities
2021-101 2021-12-1 Announcement on Accumulative Lawsuits and Arbitrations
News 28 etc.
Announcement on Progress of Security for Controlling Securities Times B36, Shanghai Securities
2021-102 2021-12-4
Company News 44 etc.
Announcement on the Progress of Asset Acquisition by
Issuance of Shares and Cash Payment, as Well as Raising Securities Times B14, Shanghai Securities
2021-103 2021-12-9
Supporting Funds and the Progress of Related Transaction News 89 etc.
Plan After Disclosure
Announcement on the Progress of Participation in Auction Securities Times B10, Shanghai Securities
2021-104 2021-12-14
for Land Use Rights News 85 etc.
Announcement on Progress of Transfer of Some of Equity Securities Times B14, Shanghai Securities
2021-105 2021-12-18
in Shenzhen E2info Network Technology Co., Ltd. News 44 etc.
Announcement on Receipt of Government Grant by the Securities Times B34, Shanghai Securities
2021-106 2021-12-25
Controlling Company News 76 etc.
Announcement on Receipt of Government Grant by
2021-107 2021-12-29 Securities Times B23, Shanghai Securities
Controlling Subsidiary
117
Konka Group Co., Ltd. Annual Report 2021
News 76 etc.
Announcement on Completion of Industrial and
Commercial Registration of Changes for Transferring Securities Times B12, Shanghai Securities
2021-108 2021-12-31
Some of Equity in Shenzhen E2info Network Technology News 84 etc.
Co., Ltd.
Announcement on Progress of Security for Wholly Owned Securities Times B132, Shanghai Securities
2021-109 2021-12-31
Subsidiary News 113 etc.
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
118
Konka Group Co., Ltd. Annual Report 2021
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Increase/decrease in the Reporting Period
Before After
(+/-)
Shares
Share as
s as dividen
divide d
New Percent
Percenta nd convert Sub
Shares issue Other Shares age
ge (%) conve ed total
s (%)
rted from
from capital
profit reserve
s
1. Restricted shares 19,500 0.00% 19,500 0.00%
1.3 Shares held by
other domestic 19,500 0.00% 19,500 0.00%
investors
Shares held by
domestic natural 19,500 0.00% 19,500 0.00%
persons
100.00 100.00
2,407,925,908 2,407,925,908
2. Unrestricted shares % %
2.1
66.31
RMB-denominated 1,596,574,300 66.31% 1,596,574,300
%
ordinary shares
2.2 Domestically 33.69
811,351,608 33.69% 811,351,608
listed foreign shares %
100.00 100.00
3. Total shares 2,407,945,408 2,407,945,408
% %
Reasons for the share changes:
□ Applicable √ Not applicable
Approval of the share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
119
Konka Group Co., Ltd. Annual Report 2021
□ Applicable √ Not applicable
Effects of the share changes on the basic and diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the prior year
and the prior accounting period, respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to
be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable √ Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of preferred
Number of ordinary
Number of preferred shareholders with resumed
Number of shareholders at the
shareholders with resumed voting rights at the
ordinary 90,266 month-end prior to 89,329 0 0
voting rights (if any) (note month-end prior to the
shareholders the disclosure of this
8) disclosure of this Report (if
Report
any) (note 8)
5% or greater shareholders or top 10 shareholders
Rest Shares in pledge, marked or
Increase/d
Shareho Total ricte frozen
ecrease in Unrestricte
Nature of lding shares held d
Name of shareholder the d shares
shareholder percenta at the shar
Reporting held Status Shares
ge period-end es
Period
held
OVERSEAS CHINESE State-owne
523,746,93 523,746,93
TOWN HOLDINGS d legal 21.75% 0 0
2 2
COMPANY person
CITIC SECURITIES Foreign
180,001,11 -2,099,09 180,001,11
BROKERAGE (HONG legal 7.48% 0
0 2 0
KONG) CO., LTD. person
120
Konka Group Co., Ltd. Annual Report 2021
Domestic
111,111,10 52,783,34 111,111,10
WANG JINGFENG natural 4.61% 0
0 2 0
person
GUOYUAN Foreign
SECURITIES BROKER legal 2.46% 59,300,325 1,200,000 0 59,300,325
(HK) CO., LTD. person
Foreign
HOLY TIME GROUP
legal 2.38% 57,289,100 0 0 57,289,100
LIMITED
person
Foreign
GAOLING FUND,L.P. legal 2.19% 52,801,250 0 0 52,801,250
person
Foreign
NAM NGAI natural 0.94% 22,567,540 0 0 22,567,540
person
CHINA MERCHANTS State-owne
SECURITIES (HK) d legal 0.80% 19,314,220 -176,100 0 19,314,220
LIMITED person
BOCOM Foreign
18,896,03
INTERNATIONAL legal 0.78% 18,896,037 0 18,896,037
7
SECURITIES LIMITED person
Domestic
17,680,00
LI HANFA natural 0.73% 17,680,000 0 17,680,000
0
person
Strategic investor or general legal person
becoming a top-10 ordinary shareholder N/A
due to rights issue (if any) (see note 3)
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (OCT Group), holds
180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC
Related or acting-in-concert parties
Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited.
among the shareholders above
Happy Bloom Investment Limited and OCT Group are parties acting in concert. Other than
that, it is unknown whether the other shareholders are related parties or acting-in-concert
parties or not.
Explain if any of the shareholders above
was involved in entrusting/being
N/A
entrusted with voting rights or waiving
voting rights
Special account for share repurchases (if
any) among the top 10 shareholders (see None
note 10)
Top 10 unrestricted shareholders
Name of shareholder Unrestricted shares held at the period-end Shares by type
121
Konka Group Co., Ltd. Annual Report 2021
Type Shares
RMB-denomin
OVERSEAS CHINESE TOWN 523,746,93
523,746,932 ated ordinary
HOLDINGS COMPANY 2
stock
Domestically
CITIC SECURITIES BROKERAGE 180,001,11
180,001,110 listed foreign
(HONG KONG) CO., LTD. 0
stock
RMB-denomin
111,111,10
WANG JINGFENG 111,111,100 ated ordinary
0
stock
Domestically
GUOYUAN SECURITIES BROKER
59,300,325 listed foreign 59,300,325
(HK) CO., LTD.
stock
Domestically
HOLY TIME GROUP LIMITED 57,289,100 listed foreign 57,289,100
stock
Domestically
GAOLING FUND,L.P. 52,801,250 listed foreign 52,801,250
stock
Domestically
NAM NGAI 22,567,540 listed foreign 22,567,540
stock
Domestically
CHINA MERCHANTS SECURITIES
19,314,220 listed foreign 19,314,220
(HK) LIMITED
stock
Domestically
BOCOM INTERNATIONAL
18,896,037 listed foreign 18,896,037
SECURITIES LIMITED
stock
RMB-denomin
LI HANFA 17,680,000 ated ordinary 17,680,000
stock
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
Related or acting-in-concert parties majority shareholder Overseas Chinese Town Holdings Company (OCT Group), holds
among top 10 unrestricted public 180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC
shareholders, as well as between top 10 Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited.
unrestricted public shareholders and top Happy Bloom Investment Limited and OCT Group are parties acting in concert. Other than
10 shareholders that, it is unknown whether the other shareholders are related parties or acting-in-concert
parties or not.
Wang Jingfeng holds 111,111,100 A-shares in the Company through his securities account for
Top 10 ordinary shareholders involved in
customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
securities margin trading (if any) (see
Li Hanfa holds 17,680,000 A-shares in the Company through his securities account for
note 4)
customer credit trading guarantee in Western Securities Co., Ltd.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
122
Konka Group Co., Ltd. Annual Report 2021
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a central state-owned legal person
Type of the controlling shareholder: legal person
Name of Legal Date of Unified
actual representative/pe establishmen social Principal activity
controller rson in charge t credit code
Export of textile, light industrial products, etc; import of
self-used goods in Shenzhen, mechanical equipment, light
industrial products, etc. as approved by the relevant authorities
of Shenzhen (under Government Document JMB [92]
WJMGTSZZ No. A19024); compensation trade; investment in
Overseas tourism and relevant cultural industry (including art
Chinese 11 performance, entertainment and their services, etc), industry,
914403001
Town Duan Xiannian November real estate, commerce & trade, packaging, decoration and
90346175T
Holdings 1985 investment in printing industry. The convert of export
Company commodities into domestic sale and the domestic sales of
import commodities. Travelling, rental of warehouses, culture
and art, bonded warehouse of car donation, convention and
exhibition services (the projects involved in license
management can be operated after getting the relevant license
first ); sales of automobile (sedan car included)
As of 31 December 2021, Overseas Chinese Town Holdings Company directly held 47.01% equity of Shenzhen
Overseas Chinese Town Co., Ltd. (a company listed in Shenzhen Stock Exchange, SZ. 000069) and indirectly held
Controlling
0.96% equity of Shenzhen Overseas Chinese Town Co., Ltd. through OCT Capital Investment Management Co.,
shareholder
Ltd. Meanwhile, Shenzhen Overseas Chinese Town Co., Ltd. indirectly held 70.94% equity of OCT (Asia)
’s holdings
Holdings Ltd. (a company listed on the main Board of Hong Kong Stock Exchange, 3366.HK). Overseas Chinese
in other
Town Holdings Company indirectly held 53.88% equity of Yunnan Tourism Co., Ltd. (a company listed in
listed
Shenzhen Stock Exchange, SZ.002059).Overseas Chinese Town Holdings Company held 7.77% equity of China
companies
Everbright Bank Company Limited (a company listed on the main Board of Shanghai Stock Exchange
at home or
(SH.601818) and the main Board of Hong Kong Stock Exchange (6818.HK). Overseas Chinese Town Holdings
abroad in
Company indirectly held 2.74% equity of Zhejiang Century Huatong Group Co., Ltd. (a company listed in
the
Shenzhen Stock Exchange, SZ.002602) through its subsidiary Shenzhen OCT Capital Investment Management
Reporting
Co., Ltd. Overseas Chinese Town Holdings Company indirectly held 10.36% of equity of Jiangsu Guoxin
Period
Corporation Limited (a company listed in Shenzhen Stock Exchange, SZ. 002608) through its subsidiary
Shenzhen OCT Capital Investment Management Co., Ltd..
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
123
Konka Group Co., Ltd. Annual Report 2021
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Central institution for state-owned assets management
Type of the actual controller: legal person
Legal
Date of
representative/ Unified social credit
Name of actual controller establishmen Principal activity
person in code
t
charge
State-owned Assets Supervision
and Administration Commission of Hao Peng Not applicable Not applicable
the State Council
Actual controller’s holdings in
other listed companies at home or Not applicable
abroad in the Reporting Period
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of
asset management.
□ Applicable √ Not applicable
124
Konka Group Co., Ltd. Annual Report 2021
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder
or the Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all
shares of the Company held by Them
□ Applicable √ Not applicable
5. Other 10% or Greater Corporate Shareholders
□ Applicable √ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual
Controller, Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
IV Specific Implementation of Share Repurchases in the Reporting Period
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
125
Konka Group Co., Ltd. Annual Report 2021
Part VIII Preference Shares
□ Applicable √ Not applicable
No Preference shares in the Reporting Period.
126
Konka Group Co., Ltd. Annual Report 2021
Part IX Corporate Bonds
√ Applicable □ Not applicable
I Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.
II Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
Bonds
Way of
Release Value Maturity balance Interest Trade
Name Abbr. Code redemptio
date date date (RMB’0, rate place
n
000)
Interests
shall be
Privately placed paid
corporate bonds every
in 2019 of 19 14 14 14 year and Shenzhen
Konka Group Konk 114418 January January January 0.00 5.00% the Stock
Co., Ltd a 01 2019 2019 2022 principals Exchange
(Tranche I) shall be
(Variety I) repaid
when
expired.
Interests
shall be
Privately placed paid
corporate bonds every
in 2019 of 19 14 14 14 year and Shenzhen
1,500,000
Konka Group Konk 114423 January January January 5.00% the Stock
,000.00
Co., Ltd a 02 2019 2019 2022 principals Exchange
(Tranche I) shall be
(Variety II) repaid
when
expired.
Privately placed Interests
19 Shenzhen
corporate bonds 3 June 3 June 3 June shall be
Konk 114488 0.00 4.50% Stock
in 2019 of 2019 2019 2022 paid
a 03 Exchange
Konka Group every
127
Konka Group Co., Ltd. Annual Report 2021
Co., Ltd year and
(Tranche II) the
(Variety I) principals
shall be
repaid
when
expired.
Interests
shall be
Privately placed paid
corporate bonds every
in 2019 of 19 year and Shenzhen
3 June 3 June 3 June 500,000,0
Konka Group Konk 114489 4.70% the Stock
2019 2019 2022 00.00
Co., Ltd a 04 principals Exchange
(Tranche II) shall be
(Variety II) repaid
when
expired.
Interests
shall be
Privately placed paid
corporate bonds every
in 2019 of 19 year and Shenzhen
22 July 22 July 22 July
Konka Group Konk 114523 0.00 4.53% the Stock
2019 2019 2022
Co., Ltd a 05 principals Exchange
(Tranche III) shall be
(Variety I) repaid
when
expired.
Interests
shall be
Privately placed paid
corporate bonds every
in 2019 of 19 year and Shenzhen
22 July 22 July 22 July 700,000,0
Konka Group Konk 114524 4.70% the Stock
2019 2019 2022 00.00
Co., Ltd a 06 principals Exchange
(Tranche III) shall be
(Variety II) repaid
when
expired.
Privately placed Interests
21 Shenzhen
corporate bonds 8 January 8 January 8 January 1,000,000 shall be
Konk 114894 4.46% Stock
in 2021 of 2021 2021 2024 ,000.00 paid
a 01 Exchange
Konka Group every
128
Konka Group Co., Ltd. Annual Report 2021
Co., Ltd year and
(Tranche I) the
principals
shall be
repaid
when
expired.
Interests
shall be
paid
Privately placed
every
corporate bonds
21 year and Shenzhen
in 2021 of 21 May 21 May 21 May 500,000,0
Konk 133003 4.00% the Stock
Konka Group 2021 2021 2024 00.00
a 02 principals Exchange
Co., Ltd
shall be
(Tranche II)
repaid
when
expired.
Interests
shall be
paid
Privately placed
every
corporate bonds
21 year and Shenzhen
in 2021 of 9 July 9 July 9 July 800,000,0
Konk 133040 3.95% the Stock
Konka Group 2021 2021 2024 00.00
a 03 principals Exchange
Co., Ltd
shall be
(Tranche III)
repaid
when
expired.
” 19 Konka 02”, “19 Konka 04”, “19 Konka 06” were placed privately to qualified
institutional investors meeting the requirements of management method for investors
Appropriate arrangement of the eligibility in bonds market of Shenzhen Stock Exchange, and “21 Konka 01”, “21 Konka
investors (if any) 02”, “21 Konka 03” were placed privately to professional investors meeting the
requirements of management method for investors eligibility of Shenzhen Stock
Exchange, which not exceeding 200 persons .
Applicable trade mechanism Comprehensive agreement trade platform of Shenzhen Stock Exchange
Risk of delisting (if any) and
No
countermeasures
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the
Investor Protection Clause
√ Applicable □ Not applicable
129
Konka Group Co., Ltd. Annual Report 2021
"19 Konka 01", "19 Konka 03", and "19 Konka 05" are attached with the issuer's option of adjusting
coupon rate: and the investor's put option. In the Reporting Period, the execution of the above
clauses are as follows:
(I) On 14 January 2021, for "19 Konka 01", the issuer's option of adjusting coupon rate and
investor's put option were exercised. Specifically: The issuer adjusted the coupon rate for the last
year within the duration to 2.80%, the sell-back quantity to 10 million shares, and the sell-back
amount to RMB1 billion. The sell-back principal and the interest of the part to which the put option
is exercised in the current period have been transferred in full to the account specified by China
Securities Depository and Clearing Corporation Limited (CSDC). "19 Konka 01" has been sold
back in full and de-listed from the stock exchange.
(II) On 3 June 2021, for "19 Konka 03", the issuer's option of adjusting coupon rate and the
investor's put option were exercised. Specifically: The issuer adjusted the coupon rate for the last
year within the duration to 2.80%, the sell-back quantity to 5 million shares, and the sell-back
amount to RMB500 million. The sell-back principal and the interest of the part to which the put
option is exercised in the current period have been transferred in full to the account specified by
CSDC. "19 Konka 03" has been sold back in full and de-listed from the stock exchange.
(III) On 22 July 2021, for "19 Konka 05", the issuer's option of adjusting coupon rate and investor's
put option were exercised. Specifically: The issuer adjusted the coupon rate for the last year within
the duration to 2.80%, the sell-back quantity to 8 million shares, and the sell-back amount to
RMB800 million. The sell-back principal and the interest of the part to which the put option is
exercised in the current period have been transferred in full to the account specified by CSDC. "19
Konka 05" has been sold back in full and de-listed from the stock exchange.
3. Intermediary
Signature Contact person of
Bond Intermediary Office address Contact number
accountant intermediary
Industrial 32/F, SK Building, No. 6,
Pu Hang, Zhang
Securities Co., Jianguomen Waidajie, / 021-38565454
Huifang
Ltd Chaoyang District, Beijing
16-26/F, Guosen Securities
19 Konka 01 Guosen
Building, No. 1012, Hongling Lin Yiping, Zhou
19 Konka 02 Securities Co., / 0755-81981041
Road, Luohu District, Li
19 Konka 03 Ltd.
Shenzhen
19 Konka 04
United Ratings No.2 Jianwai Street,
19 Konka 05 / Liu Deng 010-85679696
Co., Ltd. Chaoyang District, Beijing
19 Konka 06
19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jinxing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing
130
Konka Group Co., Ltd. Annual Report 2021
Ruihua
Certified
Public 4/F, Building 2, Yard 16, Liu Jianhua, Tang
Accountants Xisihuan Middle Road, Qimei, Shen Liu Guibin 010-88219191
(Special Haidian District, Beijing Lingzhi
General
Partnership)
Industrial 32/F, SK Building, No. 6,
Pu Hang, Zhang
Securities Co., Jianguomen Waidajie, / 021-38565454
Huifang
Ltd Chaoyang District, Beijing
Centralized Business,
Finance and Business
District, Zone B, Zhongtian
ZTF Securities
Exhibition City, North / Qian Xi, Cai Dan 0755-28777990
Co., Ltd.
Changling Road, Guanshanhu
District, Guiyang, Guizhou
(North)
United Ratings No.2 Jianwai Street,
/ Liu Qi 010-85679696
Co., Ltd. Chaoyang District, Beijing
19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jinxing,
21 Konka 01 Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
21 Konka 02 Firm
Beijing
21 Konka 03
Ruihua
Certified
Public 4/F, Building 2, Yard 16,
Accountants Xisihuan Middle Road, Liu Guibin Liu Guibin 010-88219191
(Special Haidian District, Beijing
General
Partnership)
Shinewing
Certified
8/F, Block A, Fu Hua
Public
Mansion, No. 8, Liu Jianhua, Tang Liu Jianhua, Tang
Accountants 028-62922886
Chaoyangmen Beidajie, Qimei Qimei
(Special
Dongcheng District, Beijing
General
Partnership)
Indicate by tick mark whether above intermediary changed in the Reporting Period
□ Yes √ No
4. List of the Usage of the Raised Funds
Unit: RMB100 million
131
Konka Group Co., Ltd. Annual Report 2021
Whether is
consistent with
Rectification of the usage,
Operation of
raised funds for using plan and
special account
Bonds Total amount Amount spent Unused amount violation other
for raised funds
operation (if agreements
(if any)
any) stipulated in the
raising
specification
19 Konka 01 10.00 10.00 0.00
19 Konka 02 15.00 15.00 0.00
19 Konka 03 5.00 5.00 0.00
19 Konka 04 5.00 5.00 0.00
Well-functionni
19 Konka 05 8.00 8.00 0.00 Not applicable Yes
ng
19 Konka 06 7.00 7.00 0.00
21 Konka 01 10.00 10.00 0.00
21 Konka 02 5.00 5.00 0.00
21 Konka 03 8.00 8.00 0.00
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee
Measures as well as Influence on Equity of Bond Investors during the Reporting Period
√ Applicable □ Not applicable
OCT Group provides full, unconditional and irrevocable joint liability guarantee for "19 Konka 01",
"19 Konka 02", "19 Konka 03", "19 Konka 04", "19 Konka 05", "19 Konka 06", "21 Konka 01",
"21 Konka 02" and "21 Konka 03". The Credit Enhancement Mechanisms, Redemption Plans and
Other Redemption Security Measures during the Reporting Period are executed according to
agreement. No change occurred.
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Convertible Corporate Bonds
□ Applicable √ Not applicable
132
Konka Group Co., Ltd. Annual Report 2021
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□ Applicable √ Not applicable
VII Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000
Item 31 December 2021 31 December 2020 Increase/decrease
Current ratio 88.92% 93.18% -4.57%
Asset-liability ratio 74.42% 78.51% -4.09%
Quick ratio 71.36% 76.42% -6.62%
2021 2020 Increase/decrease
Net profit after deducting -325,079.81 -236,759.08
-37.30%
non-recurring profit or loss
Debt/EBITDA ratio 13.59% 7.61% 5.98%
Times interest earned 2.38 1.40 70.00%
Times interest earned of cash 2.33 1.63 42.94%
Times interest earned of 2.97 1.92
54.69%
EBITDA
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
133
Konka Group Co., Ltd. Annual Report 2021
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 28 March 2022
ShineWing Certified Public Accountants (Special General
Name of the independent auditor
Partnership)
Reference number of audit report XYZH/2022GZAA50020
Name of the certified public accountants Tang Qimei, Liu Jianhua
Independent Auditor’s Report
XYZH/2022GZAA50020
All shareholders of Konka Group Co., Ltd.
I. Opinion
We have audited the accompanying financial statements of Konka Group Co., Ltd. (the
“Company”), which comprise the Company’s and consolidated balance sheets of the parent
company as at 31 December 2021, the Company’s and consolidated income statements of the parent
company, the Company’s and consolidated cash flow statements of the parent company, the
Company’s and consolidated statements of changes in shareholders’ equity of the parent company
for the year then ended, as well as the notes to the financial statements.
In our opinion, the financial statements attached were prepared in line with the regulations of
Accounting Standards for Business Enterprises in all significant aspects which gave a true and fair
view of the consolidated and parent financial position of the Company as at 31 December 2021 and
the consolidated and parent business performance and cash flow of the Company for 2021.
II. Basis for Opinion
We conducted our audit in accordance with Standards on Auditing for Certified Public Accountants.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. In accordance with professional ethics
for certified public accountants, we are independent with Foshan Huaxin Packing Co., Ltd. and we
have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the Current Period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
134
Konka Group Co., Ltd. Annual Report 2021
we do not provide a separate opinion on these matters.
1. Recognition of operating revenues
Key audit matters Countermeasures of audit
Please refer to the notes to the (1) Evaluate and test income to confirm the effectiveness of key internal control design and operation;
financial statements "six, notes to (2) Obtain signed sales contracts, analyze relevant provisions, and evaluate whether the revenue
the consolidated financial statements" recognition of Konka Group is in compliance with the Accounting Standards for Business Enterprises;
48.In 2021, Konka Group's (3) Obtain Konka Group’s customer list, examine the customers’ information registered with the industrial
consolidated financial statements and commercial administration, inquire the relevant personnel of Konka Group, and identify whether any
confirmed operating income of of the customers is a related party to Konka Group;
RMB49106.51.37 million, the mainly
(4) Perform analytical procedures on revenue and costs, evaluate the rationality of sales revenue and gross
revenue comes from the electronic
profit margin changes;
business, trading business,and
(5) Examine materials such as important sales contracts, orders, invoices, goods ownership transfer
environmental protection business,
certificates, bank receipts, invoices; regarding the industry trade business, learn about trading backgrounds
environmental protection business,
and business nature to decide whether Konka Group is the main responsibility entity or an agent; select
etc. Due to the importance of revenue
important customers, verify the transaction amounts and balances in writing to verify the truthfulness,
to the financial statements as a whole,
completeness and accuracy of revenue;
and the inherent misstatement risk of
(6) Conduct a cut-off test on sales revenue.
management's manipulation of
revenue recognition in order to
achieve specific goals or
expectations, we make revenue
recognition a key audit matter.
2. Recognition of investment income
Key audit matters Countermeasures of audit
Please refer to the notes to the (1) Evaluate and test income to confirm the effectiveness of key internal control design and operation;
financial statements "six, notes to (2) Obtain signed sales contracts, analyze relevant provisions, and evaluate whether the revenue
the consolidated financial recognition of Konka Group is in compliance with the Accounting Standards for Business Enterprises;
statements"55In 2021, Konka Group's (3) Obtain Konka Group’s customer list, examine the customers’ information registered with the industrial
consolidated financial statements and commercial administration, inquire the relevant personnel of Konka Group, and identify whether any
confirmed investment income of of the customers is a related party to Konka Group;
RMB4216.8069 million Mainly for
(4) Perform analytical procedures on revenue and costs, evaluate the rationality of sales revenue and gross
the disposal of investment income
profit margin changes;
generated by long-term equity
(5) Examine materials such as important sales contracts, orders, invoices, goods ownership transfer
investment, the gains from the
certificates, bank receipts, invoices; regarding the industry trade business, learn about trading backgrounds
remeasurement of the remaining
and business nature to decide whether Konka Group is the main responsibility entity or an agent; select
equity at equity method on the day of
important customers, verify the transaction amounts and balances in writing to verify the truthfulness,
the loss of control rights at fair value.
135
Konka Group Co., Ltd. Annual Report 2021
1. Recognition of operating revenues
Key audit matters Countermeasures of audit
Since the amount of investment completeness and accuracy of revenue; and
income is significant, we confirm the (6) Conduct a cut-off test on sales revenue.
recognition of investment income as a
key audit matter.
IV. Other Information
The management of the Company is responsible for the other information. The other information
comprises all of the information included in the annual report for 2021 other than the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibility of Management and Those Charged with Governance for the Financial
Statements
The management of the Company is responsible for the preparation and fair presentation of these
financial statements in accordance with Accounting Standards for Business Enterprises to make
them a fair presentation and designing, implementing and maintaining internal control relevant to
the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the management of the Company is responsible for assessing
the Company’s ability to continue as a going concern, disclosing, if applicable, matters related to
going concern and using the going concern basis of accounting unless the management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
VI. CPA’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. We report our opinion solely to you, as a body, and for no other purpose.
We do not assume responsibility towards or accept liability to any other person for the contents of
136
Konka Group Co., Ltd. Annual Report 2021
this report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of major misstatement of financial statements due to fraud or errors,
design and implement audit procedures to deal with these risks, and obtain sufficient and
appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion,
forgery, intentional omissions, misrepresentation, or overriding internal control, the risk of failing to
detect a major misstatement due to fraud is higher than the risk of failing to detect a major
misstatement due to error.
(2) Understand the internal control related to auditing in order to design appropriate auditing
procedures.
(3) Evaluate the appropriateness of management's selection of accounting policies and the
rationality of accounting estimates and related disclosures.
(4) To draw conclusions on the appropriateness of the management's use of continuous operation
assumptions. At the same time, based on the audit evidence obtained, a conclusion can be drawn on
whether there is a material uncertainty that may cause significant doubts about Konka Group's
ability to continue operations. If we conclude that there are significant uncertainties, the auditing
standards require us to draw the attention of the users of the statements to the relevant disclosures in
the financial statements in the audit report; if the disclosures are insufficient, we should issue a
non-reserved opinion. Our conclusion is based on the information available as of the date of the
audit report. However, future events or circumstances may prevent Konka Group from continuing
its operations.
(5) Evaluate the overall presentation, structure, and content of the financial statements, and evaluate
whether the financial statements fairly reflect related transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of the entities or
business activities in Konka Group to express audit opinions on the financial statements. We are
responsible for guiding, supervising and executing group audits, and assume full responsibility for
audit opinions.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
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Konka Group Co., Ltd. Annual Report 2021
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the Current Period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
ShineWing Certified Public Accountants CPA: (Engagement Partner)
(Special General Partnership)
CPA:
BeijingChina 28 March 2022
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
31 December 2021
Unit: RMB
Item 31 December 2021 31 December 2020
Current assets:
Monetary assets 6,489,553,211.24 5,431,530,180.90
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 618,249,541.66
Derivative financial assets
Notes receivable 1,777,477,481.28 2,358,180,193.96
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Konka Group Co., Ltd. Annual Report 2021
Accounts receivable 3,397,729,481.07 3,900,897,623.59
Accounts receivable financing 71,490,688.54 84,057,197.44
Prepayments 631,400,953.86 1,183,270,543.41
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,837,459,705.64 2,145,736,640.60
Including: Interest receivable 2,573,082.79 45,109,425.85
Dividends receivable 4,947,848.62
Financial assets purchased under resale agreements
Inventories 4,068,537,809.18 4,521,300,677.41
Contract assets 2,870,006,710.39
Assets held for sale
Current portion of non-current assets 28,105,523.78 112,310,158.82
Other current assets 2,299,963,391.24 1,913,146,483.39
Total current assets 20,601,718,245.83 25,138,685,951.57
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 18,495,499.14 399,497,204.03
Long-term equity investments 5,902,588,939.51 4,375,833,584.65
Investments in other equity instruments 23,841,337.16 25,343,293.16
Other non-current financial assets 2,293,361,603.68 1,878,154,796.76
Investment property 776,525,061.54 538,585,668.29
Fixed assets 4,010,295,277.14 3,178,642,017.84
Construction in progress 1,490,777,831.39 9,236,643,931.68
Productive living assets
Oil and gas assets
Right-of-use assets 71,210,415.37
Intangible assets 975,295,916.08 1,189,191,001.51
Development costs 16,870,310.70
Goodwill 22,196,735.11 675,795,873.17
Long-term prepaid expense 297,497,383.39 153,198,562.82
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Konka Group Co., Ltd. Annual Report 2021
Deferred income tax assets 725,315,725.10 1,265,916,437.39
Other non-current assets 2,648,530,490.12 1,820,779,170.74
Total non-current assets 19,272,802,525.43 24,737,581,542.04
Total assets 39,874,520,771.26 49,876,267,493.61
Current liabilities:
Short-term borrowings 9,920,675,121.08 10,990,550,475.78
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,116,336,958.91 1,335,987,026.21
Accounts payable 3,784,315,091.41 9,632,366,325.76
Advances from customers
Contract liabilities 652,910,408.02 1,217,367,735.94
Financial assets sold under repurchase agreements
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 410,747,084.80 476,616,244.45
Taxes payable 295,825,170.41 508,214,059.16
Other payables 1,788,177,748.59 1,999,430,899.69
Including: Interest payable 174,383,177.08 220,837,380.17
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 5,089,586,269.32 376,896,566.29
Other current liabilities 109,742,188.24 441,774,317.23
Total current liabilities 23,168,316,040.78 26,979,203,650.51
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3,529,140,539.09 5,964,748,997.54
Bonds payable 2,293,698,899.30 4,993,212,788.32
Including: Preferred shares
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Konka Group Co., Ltd. Annual Report 2021
Perpetual bonds
Lease liabilities 42,532,869.63
Long-term payables 140,687,570.78 481,409,849.96
Long-term employee benefits payable 5,111,296.75 5,248,309.14
Provisions 106,276,535.85 102,353,567.91
Deferred income 206,302,424.92 446,900,524.64
Deferred income tax liabilities 76,894,581.97 75,819,231.93
Other non-current liabilities 104,610,663.76 106,475,449.02
Total non-current liabilities 6,505,255,382.05 12,176,168,718.46
Total liabilities 29,673,571,422.83 39,155,372,368.97
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 234,389,963.10 230,185,310.09
Less: Treasury stock
Other comprehensive income -20,336,087.87 -16,583,042.42
Specific reserve
Surplus reserves 1,244,180,364.24 1,211,721,109.67
General reserve
Retained earnings 5,229,098,788.94 4,595,371,391.63
Total equity attributable to owners of the Company as the
9,095,278,436.41 8,428,640,176.97
parent
Non-controlling interests 1,105,670,912.02 2,292,254,947.67
Total owners’ equity 10,200,949,348.43 10,720,895,124.64
Total liabilities and owners’ equity 39,874,520,771.26 49,876,267,493.61
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Guo Zhihua
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2021 31 December 2020
Current assets:
Monetary assets 4,809,203,282.52 3,481,445,560.17
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Konka Group Co., Ltd. Annual Report 2021
Held-for-trading financial assets 298,497,458.33
Derivative financial assets
Notes receivable 912,584,879.70 879,589,355.91
Accounts receivable 4,468,684,877.11 4,473,251,691.85
Accounts receivable financing 6,250,000.00 5,659,400.00
Prepayments 1,617,640,913.05 1,021,218,285.46
Other receivables 10,925,066,231.53 10,034,869,353.07
Including: Interest receivable 2,002,526.91 41,138,869.97
Dividends receivable 383,943,256.80 749,431,635.50
Inventories 192,035,723.31 202,406,456.36
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1,736,172,492.35 1,020,031,186.39
Total current assets 24,667,638,399.57 21,416,968,747.54
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 8,633,142,223.64 8,806,166,599.56
Investments in other equity instruments 17,940,215.36 17,940,215.36
Other non-current financial assets 200,326,093.02 250,230,000.00
Investment property 455,475,442.43 406,237,236.91
Fixed assets 398,611,899.13 431,762,044.14
Construction in progress 304,489,347.00 132,464,938.18
Productive living assets
Oil and gas assets
Right-of-use assets 4,023,376.21
Intangible assets 55,814,854.54 59,506,272.63
Development costs
Goodwill
Long-term prepaid expense 31,718,868.00 16,532,521.69
Deferred income tax assets 711,814,124.48 980,095,292.53
Other non-current assets 10,867,888.84
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Konka Group Co., Ltd. Annual Report 2021
Total non-current assets 10,813,356,443.81 11,111,803,009.84
Total assets 35,480,994,843.38 32,528,771,757.38
Current liabilities:
Short-term borrowings 4,259,749,597.92 5,052,990,048.93
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,126,421,923.99 1,344,958,738.50
Accounts payable 8,297,778,584.91 6,811,467,585.39
Advances from customers
Contract liabilities 740,817,658.30 723,022,740.95
Employee benefits payable 128,148,938.08 147,391,317.06
Taxes payable 8,022,098.02 4,094,133.23
Other payables 4,155,006,946.60 4,275,347,622.57
Including: Interest payable 171,516,416.71 215,828,625.04
Dividends payable
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 4,715,415,917.78 5,867,425.49
Other current liabilities 11,124,209.72 6,108,675.36
Total current liabilities 23,442,485,875.32 18,371,248,287.48
Non-current liabilities:
Long-term borrowings 3,161,298,604.12 2,930,034,612.32
Bonds payable 2,293,698,899.30 4,993,212,788.32
Including: Preferred shares
Perpetual bonds
Lease liabilities 1,664,232.11
Long-term payables 17,633,249.67
Long-term employee benefits payable
Provisions 572,097.48 832,465.72
Deferred income 36,243,964.61 61,530,557.55
Deferred income tax liabilities 2,334,364.58
Other non-current liabilities 43,677,187.49 54,162,098.05
Total non-current liabilities 5,537,154,985.11 8,059,740,136.21
Total liabilities 28,979,640,860.43 26,430,988,423.69
Owners’ equity:
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Konka Group Co., Ltd. Annual Report 2021
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 110,696,992.60 112,570,352.72
Less: Treasury stock
Other comprehensive income -1,500,000.00 -2,682,217.31
Specific reserve
Surplus reserves 1,260,024,039.76 1,227,564,785.19
Retained earnings 2,724,187,542.59 2,352,385,005.09
Total owners’ equity 6,501,353,982.95 6,097,783,333.69
Total liabilities and owners’ equity 35,480,994,843.38 32,528,771,757.38
3. Consolidated Income Statement
Unit: RMB
Item 2021 2020
1. Revenue 49,106,513,669.58 50,351,836,554.87
Including: Operating revenue 49,106,513,669.58 50,351,836,554.87
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 51,466,453,430.94 52,314,397,544.31
Including: Cost of sales 47,401,884,981.53 47,595,064,349.98
Interest expense
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract
reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 107,078,675.16 97,235,867.31
Selling expense 1,428,062,895.37 1,825,626,804.27
Administrative expense 960,449,117.12 1,022,981,943.34
R&D expense 616,335,488.01 681,878,611.65
Finance costs 952,642,273.75 1,091,609,967.76
144
Konka Group Co., Ltd. Annual Report 2021
Including: Interest expense 1,003,080,641.99 979,223,522.98
Interest income 169,492,982.89 164,580,939.30
Add: Other income 1,353,534,580.11 928,933,528.03
Return on investment (“-” for loss) 4,216,806,949.38 2,433,336,004.85
Including: Share of profit or loss of joint ventures and
78,926,555.74 106,458,465.42
associates
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 52,490,907.33 19,089,541.66
Credit impairment loss (“-” for loss) -1,107,273,681.31 -722,375,850.15
Asset impairment loss (“-” for loss) -643,102,386.02 -462,407,098.47
Asset disposal income (“-” for loss) 571,964.16 206,315,700.34
3. Operating profit (“-” for loss) 1,513,088,572.29 440,330,836.82
Add: Non-operating income 82,601,532.35 87,126,795.41
Less: Non-operating expense 24,444,724.35 25,590,474.86
4. Profit before tax (“-” for loss) 1,571,245,380.29 501,867,157.37
Less: Income tax expense 764,544,554.19 -38,206,305.07
5. Net profit (“-” for net loss) 806,700,826.10 540,073,462.44
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
806,700,826.10 540,073,462.44
loss)
5.1.2 Net profit from discontinued operations (“-” for net
loss)
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the
905,352,997.68 477,633,250.14
Company as the parent
5.2.1 Net profit attributable to non-controlling interests -98,652,171.58 62,440,212.30
6. Other comprehensive income, net of tax -6,210,784.44 -2,800,360.64
Attributable to owners of the Company as the parent -3,753,045.45 3,081,866.10
6.1 Items that will not be reclassified to profit or loss 1,625,107.80
6.1.1 Changes caused by remeasurements on defined
benefit schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other 1,625,107.80
145
Konka Group Co., Ltd. Annual Report 2021
equity instruments
6.1.4 Changes in the fair value arising from changes in
own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -3,753,045.45 1,456,758.30
6.2.1 Other comprehensive income that will be
1,182,217.31
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of investments in other
debt obligations
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in
other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
-4,935,262.76 1,456,758.30
currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -2,457,738.99 -5,882,226.74
7. Total comprehensive income 800,490,041.66 537,273,101.80
Attributable to owners of the Company as the parent 901,599,952.23 480,715,116.24
Attributable to non-controlling interests -101,109,910.57 56,557,985.56
8. Earnings per share
8.1 Basic earnings per share 0.3760 0.1984
8.2 Diluted earnings per share 0.3760 0.1984
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Guo Zhihua
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2021 2020
1. Operating revenue 2,866,801,648.83 3,714,887,652.49
Less: Cost of sales 2,801,504,839.24 3,276,220,339.62
Taxes and surcharges 12,498,811.40 10,739,550.81
Selling expense 424,186,040.12 503,144,683.54
Administrative expense 382,489,529.42 472,549,413.24
R&D expense 97,574,600.53 93,029,766.19
Finance costs 483,733,481.27 626,375,762.29
146
Konka Group Co., Ltd. Annual Report 2021
Including: Interest expense 839,889,878.68 813,956,736.75
Interest income 452,535,196.29 438,850,221.34
Add: Other income 39,245,757.36 66,280,682.30
Return on investment (“-” for loss) 3,464,665,015.66 1,821,844,767.52
Including: Share of profit or loss of joint ventures and
94,791,865.50 -5,700,659.97
associates
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -12,011,365.31 9,337,458.33
Credit impairment loss (“-” for loss) -1,004,145,022.47 -631,160,001.21
Asset impairment loss (“-” for loss) -556,453,134.90 -100,464,731.32
Asset disposal income (“-” for loss) 188,200,000.00
2. Operating profit (“-” for loss) 596,115,597.19 86,866,312.42
Add: Non-operating income 13,373,472.37 35,988,778.37
Less: Non-operating expense 18,967,155.53 9,642,635.24
3. Profit before tax (“-” for loss) 590,521,914.03 113,212,455.55
Less: Income tax expense 265,929,368.36 -94,328,961.05
4. Net profit (“-” for net loss) 324,592,545.67 207,541,416.60
4.1 Net profit from continuing operations (“-” for net loss) 324,592,545.67 207,541,416.60
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax 1,182,217.31
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit schemes
5.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other
equity instruments
5.1.4 Changes in the fair value arising from changes in
own credit risk
5.1.5 Other
5.2 Items that will be reclassified to profit or loss 1,182,217.31
5.2.1 Other comprehensive income that will be
1,182,217.31
reclassified to profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Other comprehensive income arising from the
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Konka Group Co., Ltd. Annual Report 2021
reclassification of financial assets
5.2.4 Credit impairment allowance for investments in
other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of foreign
currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income 325,774,762.98 207,541,416.60
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2021 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
49,515,088,981.33 47,366,925,545.71
services
Net increase in customer deposits and interbank deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax rebates 419,652,399.70 453,084,150.61
Cash generated from other operating activities 2,016,982,305.72 4,223,616,786.41
Subtotal of cash generated from operating activities 51,951,723,686.75 52,043,626,482.73
Payments for commodities and services 46,186,429,808.61 45,800,932,391.57
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in interbank
loans granted
Payments for claims on original insurance contracts
Net increase in interbank loans granted
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Konka Group Co., Ltd. Annual Report 2021
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 1,952,798,829.91 1,744,799,823.16
Taxes paid 862,563,882.08 854,326,582.63
Cash used in other operating activities 2,141,174,772.04 3,464,951,157.16
Subtotal of cash used in operating activities 51,142,967,292.64 51,865,009,954.52
Net cash generated from/used in operating activities 808,756,394.11 178,616,528.21
2. Cash flows from investing activities:
Proceeds from disinvestment 711,179,541.54 706,624,869.40
Return on investment 98,795,653.56 125,587,929.51
Net proceeds from the disposal of fixed assets, intangible
235,061,583.74 370,112,371.91
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
2,569,725,512.90 873,767,298.03
business units
Cash generated from other investing activities 2,388,474,099.33 2,722,258,145.07
Subtotal of cash generated from investing activities 6,003,236,391.07 4,798,350,613.92
Payments for the acquisition of fixed assets, intangible
6,639,941,735.82 5,639,711,463.90
assets and other long-lived assets
Payments for investments 841,389,150.64 254,250,619.25
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
96,500,200.00
business units
Cash used in other investing activities 1,110,357,931.34 1,356,937,320.83
Subtotal of cash used in investing activities 8,688,189,017.80 7,250,899,403.98
Net cash generated from/used in investing activities -2,684,952,626.73 -2,452,548,790.06
3. Cash flows from financing activities:
Capital contributions received 149,069,787.60 505,578,067.25
Including: Capital contributions by non-controlling
149,069,787.60 505,578,067.25
interests to subsidiaries
Borrowings raised 23,661,013,892.77 19,606,041,084.27
Cash generated from other financing activities 1,019,124,723.01 2,755,219,144.42
Subtotal of cash generated from financing activities 24,829,208,403.38 22,866,838,295.94
Repayment of borrowings 19,372,566,049.47 17,891,643,322.79
Interest and dividends paid 963,157,376.97 865,497,236.05
Including: Dividends paid by subsidiaries to
49,620,733.43 4,513,500.00
non-controlling interests
Cash used in other financing activities 928,627,586.95 1,974,684,683.67
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Konka Group Co., Ltd. Annual Report 2021
Subtotal of cash used in financing activities 21,264,351,013.39 20,731,825,242.51
Net cash generated from/used in financing activities 3,564,857,389.99 2,135,013,053.43
4. Effect of foreign exchange rates changes on cash and cash
-18,370,051.58 -56,726,595.56
equivalents
5. Net increase in cash and cash equivalents 1,670,291,105.79 -195,645,803.98
Add: Cash and cash equivalents, beginning of the period 4,298,056,113.24 4,493,701,917.22
6. Cash and cash equivalents, end of the period 5,968,347,219.03 4,298,056,113.24
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2021 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 5,382,231,744.24 3,449,433,124.12
Tax rebates 146,315,048.47 264,186,752.60
Cash generated from other operating activities 354,644,830.80 2,775,286,767.61
Subtotal of cash generated from operating activities 5,883,191,623.51 6,488,906,644.33
Payments for commodities and services 4,801,085,160.78 4,041,185,808.91
Cash paid to and for employees 305,846,589.21 339,065,929.50
Taxes paid 17,618,283.94 21,261,070.79
Cash used in other operating activities 1,090,364,534.12 2,786,729,899.09
Subtotal of cash used in operating activities 6,214,914,568.05 7,188,242,708.29
Net cash generated from/used in operating activities -331,722,944.54 -699,336,063.96
2. Cash flows from investing activities:
Proceeds from disinvestment 3,791,610,018.69 1,504,019,339.15
Return on investment 416,108,161.42 228,657,238.16
Net proceeds from the disposal of fixed assets, intangible
250,499.51 188,356,456.56
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities 5,806,654,263.21 9,733,428,063.02
Subtotal of cash generated from investing activities 10,014,622,942.83 11,654,461,096.89
Payments for the acquisition of fixed assets, intangible
193,906,338.75 112,518,905.62
assets and other long-lived assets
Payments for investments 516,428,500.00 1,400,141,815.71
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 8,187,892,613.35 8,258,345,751.11
150
Konka Group Co., Ltd. Annual Report 2021
Subtotal of cash used in investing activities 8,898,227,452.10 9,771,006,472.44
Net cash generated from/used in investing activities 1,116,395,490.73 1,883,454,624.45
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 16,431,809,395.06 14,529,825,025.55
Cash generated from other financing activities 12,359,266,361.42 9,797,462,437.60
Subtotal of cash generated from financing activities 28,791,075,756.48 24,327,287,463.15
Repayment of borrowings 15,084,306,762.28 15,109,478,610.76
Interest and dividends paid 782,072,702.29 741,959,265.05
Cash used in other financing activities 11,934,250,317.89 8,075,141,705.43
Subtotal of cash used in financing activities 27,800,629,782.46 23,926,579,581.24
Net cash generated from/used in financing activities 990,445,974.02 400,707,881.91
4. Effect of foreign exchange rates changes on cash and cash
-3,272,298.44 -11,406,036.33
equivalents
5. Net increase in cash and cash equivalents 1,771,846,221.77 1,573,420,406.07
Add: Cash and cash equivalents, beginning of the period 2,910,762,592.99 1,337,342,186.92
6. Cash and cash equivalents, end of the period 4,682,608,814.76 2,910,762,592.99
151
Konka Group Co., Ltd. Annual Report 2021
7. Consolidated Statements of Changes in Owners’ Equity
2021
Unit: RMB
2021
Equity attributable to owners of the Company as the parent
Other equity
O
instruments
Item Less: Spec Gen t
Other Non-controlling Total owners’
O
Prefe Capital Trea ific eral h
Share capital comprehensive Surplus reserves Retained earnings Subtotal interests equity
Perpet t
rred reserves sury reser reser e
ual h income
share stock ve ve r
bonds e
s
r
1. Balance as at the end of the
2,407,945,408.00 230,185,310.09 -16,583,042.42 1,211,721,109.67 4,595,371,391.63 8,428,640,176.97 2,292,254,947.67 10,720,895,124.64
prior year
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Adjustment for business
combination under common
control
Other adjustments
2. Balance as at the beginning
2,407,945,408.00 230,185,310.09 -16,583,042.42 1,211,721,109.67 4,595,371,391.63 8,428,640,176.97 2,292,254,947.67 10,720,895,124.64
of the year
3. Increase/ decrease in the
4,204,653.01 -3,753,045.45 32,459,254.57 633,727,397.31 666,638,259.44 -1,186,584,035.65 -519,945,776.21
period (“-” for decrease)
3.1 Total comprehensive
-3,753,045.45 905,352,997.68 901,599,952.23 -101,109,910.57 800,490,041.66
income
152
Konka Group Co., Ltd. Annual Report 2021
3.2 Capital increased and
4,204,653.01 4,204,653.01 -1,015,079,437.90 -1,010,874,784.89
reduced by owners
3.2.1 Ordinary shares
79,947,914.99 79,947,914.99
increased by owners
3.2.2 Capital increased by
holders of other equity
instruments
3.2.3 Share-based
payments included in owners’
equity
3.2.4 Other 4,204,653.01 4,204,653.01 -1,095,027,352.89 -1,090,822,699.88
3.3 Profit distribution 32,459,254.57 -273,253,795.37 -240,794,540.80 -42,123,733.44 -282,918,274.24
3.3.1 Appropriation to
32,459,254.57 -32,459,254.57
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to
-240,794,540.80 -240,794,540.80 -42,123,733.44 -282,918,274.24
owners (or shareholders)
3.3.4 Other
3.4 Transfers within owners’
-28,270,953.74 -28,270,953.74
equity
3.4.1 Increase in capital
(or share capital) from capital
reserves
3.4.2 Increase in capital
(or share capital) from surplus
reserves
3.4.3 Loss offset by
surplus reserves
153
Konka Group Co., Ltd. Annual Report 2021
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other
comprehensive income
transferred to retained earnings
3.4.6 Other -28,270,953.74 -28,270,953.74
3.5 Specific reserve
3.5.1 Increase in the
period
3.5.2 Used in the period
3.6 Other 1,628,195.00 1,628,195.00 1,628,195.00
4. Balance as at the end of the
2,407,945,408.00 234,389,963.10 -20,336,087.87 1,244,180,364.24 5,229,098,788.94 9,095,278,436.41 1,105,670,912.02 10,200,949,348.43
period
2020
Unit: RMB
2020
Equity attributable to owners of the Company as the parent
Other equity
O
instruments
Item Less: Spec Gen t
Other Non-controlling Total owners’
Per
Prefe Treas ific eral Retained h
Share capital Capital reserves comprehensive Surplus reserves Subtotal interests equity
petu O
rred ury reser reser earnings e
al th income
share stock ve ve r
bon er
s
ds
1. Balance as at the end of the
2,407,945,408.00 230,368,577.09 -21,293,103.52 1,211,721,109.67 4,239,763,606.89 8,068,505,598.13 1,858,192,188.67 9,926,697,786.80
prior year
154
Konka Group Co., Ltd. Annual Report 2021
Add: Adjustment for change
in accounting policy
Adjustment for correction
of previous error
Adjustment for business
combination under common
control
Other adjustments
2. Balance as at the beginning
2,407,945,408.00 230,368,577.09 -21,293,103.52 1,211,721,109.67 4,239,763,606.89 8,068,505,598.13 1,858,192,188.67 9,926,697,786.80
of the year
3. Increase/ decrease in the
-183,267.00 4,710,061.10 355,607,784.74 360,134,578.84 434,062,759.00 794,197,337.84
period (“-” for decrease)
3.1 Total comprehensive
3,081,866.10 477,633,250.14 480,715,116.24 56,557,985.56 537,273,101.80
income
3.2 Capital increased and
-183,267.00 -183,267.00 418,501,067.25 418,317,800.25
reduced by owners
3.2.1 Ordinary shares
418,501,067.25 418,501,067.25
increased by owners
3.2.2 Capital increased
by holders of other equity
instruments
3.2.3 Share-based
payments included in owners’
equity
3.2.4 Other -183,267.00 -183,267.00 -183,267.00
3.3 Profit distribution -120,397,270.40 -120,397,270.40 -40,996,293.81 -161,393,564.21
3.3.1 Appropriation to
surplus reserves
155
Konka Group Co., Ltd. Annual Report 2021
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to
-120,397,270.40 -120,397,270.40 -40,996,293.81 -161,393,564.21
owners (or shareholders)
3.3.4 Other
3.4 Transfers within
1,628,195.00 -1,628,195.00
owners’ equity
3.4.1 Increase in capital
(or share capital) from capital
reserves
3.4.2 Increase in capital
(or share capital) from surplus
reserves
3.4.3 Loss offset by
surplus reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other
comprehensive income
transferred to retained
earnings
3.4.6 Other 1,628,195.00 -1,628,195.00
3.5 Specific reserve
3.5.1 Increase in the
period
3.5.2 Used in the period
3.6 Other
156
Konka Group Co., Ltd. Annual Report 2021
4. Balance as at the end of the
2,407,945,408.00 230,185,310.09 -16,583,042.42 1,211,721,109.67 4,595,371,391.63 8,428,640,176.97 2,292,254,947.67 10,720,895,124.64
period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2021
Unit: RMB
2021
Other equity instruments O
t
Less: Other
Item Specific h
Preferr Perpetu
Share capital Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
ed al Other reserve e
stock income
shares bonds r
1. Balance as at the end of the prior year 2,407,945,408.00 112,570,352.72 -2,682,217.31 1,227,564,785.19 2,352,385,005.09 6,097,783,333.69
Add: Adjustment for change in accounting
policy
Adjustment for correction of previous
error
Other adjustments 320,463,787.20 320,463,787.20
2. Balance as at the beginning of the year 2,407,945,408.00 112,570,352.72 -2,682,217.31 1,227,564,785.19 2,672,848,792.29 6,418,247,120.89
3. Increase/ decrease in the period (“-” for
-1,873,360.12 1,182,217.31 32,459,254.57 51,338,750.30 83,106,862.06
decrease)
3.1 Total comprehensive income 1,182,217.31 324,592,545.67 325,774,762.98
3.2 Capital increased and reduced by
-1,873,360.12 -1,873,360.12
owners
3.2.1 Ordinary shares increased by
owners
3.2.2 Capital increased by holders of
157
Konka Group Co., Ltd. Annual Report 2021
other equity instruments
3.2.3 Share-based payments included
in owners’ equity
3.2.4 Other -1,873,360.12 -1,873,360.12
3.3 Profit distribution 32,459,254.57 -273,253,795.37 -240,794,540.80
3.3.1 Appropriation to surplus
32,459,254.57 -32,459,254.57
reserves
3.3.2 Appropriation to owners (or
-240,794,540.80 -240,794,540.80
shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share
capital) from capital reserves
3.4.2 Increase in capital (or share
capital) from surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit
schemes transferred to retained earnings
3.4.5 Other comprehensive income
transferred to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the period 2,407,945,408.00 110,696,992.60 -1,500,000.00 1,260,024,039.76 2,724,187,542.59 6,501,353,982.95
158
Konka Group Co., Ltd. Annual Report 2021
2020
Unit: RMB
2020
Other equity instruments O
t
Less: Other
Item Specific h
Perpetu
Share capital Preferre Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
al Other reserve e
d shares stock income
bonds r
1. Balance as at the end of the prior year 2,407,945,408.00 114,018,066.79 -2,682,217.31 1,227,564,785.19 2,245,698,875.22 5,992,544,917.89
Add: Adjustment for change in
accounting policy
Adjustment for correction of previous
error
Other adjustments 19,541,983.67 19,541,983.67
2. Balance as at the beginning of the year 2,407,945,408.00 114,018,066.79 -2,682,217.31 1,227,564,785.19 2,265,240,858.89 6,012,086,901.56
3. Increase/ decrease in the period (“-”
-1,447,714.07 87,144,146.20 85,696,432.13
for decrease)
3.1 Total comprehensive income 207,541,416.60 207,541,416.60
3.2 Capital increased and reduced by
-1,264,447.07 -1,264,447.07
owners
3.2.1 Ordinary shares increased by
owners
3.2.2 Capital increased by holders
of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
159
Konka Group Co., Ltd. Annual Report 2021
3.2.4 Other -1,264,447.07 -1,264,447.07
3.3 Profit distribution -120,397,270.40 -120,397,270.40
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to owners (or
-120,397,270.40 -120,397,270.40
shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share
capital) from capital reserves
3.4.2 Increase in capital (or share
capital) from surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit
schemes transferred to retained earnings
3.4.5 Other comprehensive income
transferred to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other -183,267.00 -183,267.00
4. Balance as at the end of the period 2,407,945,408.00 112,570,352.72 -2,682,217.31 1,227,564,785.19 2,352,385,005.09 6,097,783,333.69
160
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
I. Company Profile
1. Establishment
Konka Group Co., Ltd. (hereinafter referred to as “Company” or “the Company” and the “Group”
when including subsidiaries), is a joint-stock limited company reorganized from the former
Shenzhen Konka Electronic Co., Ltd. in August 1991 upon approval of the People’s Government
of Shenzhen Municipality, and has its ordinary shares (A-share and B-share) listed on Shenzhen
Stock Exchange with prior consent from the People’s Bank of China Shenzhen Special Economic
Zone Branch. On 29 August 1995, the Company was renamed to “Konka Group Co., Ltd.”
(Credibility code: 914403006188155783) with its main business electronic industry. And now the
headquarters locates in No. 28 of No. 12 of Keji South Rd., Science & Technology Park, Yuehai
Street, Nanshan District, Shenzhen, Guangdong Province.
2. Share capital
After the distribution of bonus shares, allotments, increased share capital and new shares issued
over the years, as of 31 December 2021, the Company has issued a total of 2,407,945,408.00
shares (denomination of RMB1 per share) with a registered capital of RMB2,407,945,408.00.
3. The nature of the company's business and main operating activities
The Group was mainly engaged in the production and sales of colour TVs, white goods, etc.; as
well as the operation of industry trade business, environmental protection, semi-conductor, etc.
4. The financial statements contained herein have been approved for issue by the Board of
Directors of the Company on 28 March 2022.
II. Consolidation scope
The group consolidated financial statements include shenzhen konka electronic technology co.,
LTD., anhui konka electronic co., LTD., dongguan konka electronic co., LTD 120 subsidiaries,
compared with the previous year, this year because of new buy buy increasing shaanxi konka
intelligent electrical appliances co., LTD., south TongKang electric intelligent technology co.,
LTD., konka, trade and industry science and technology (shenzhen) co., LTD., etc. 33, Due to
equity transfer loss of control or cancellation of subsidiaries reduced yikang Technology Co.,
LTD., Shenzhen Yisquare Network Technology Co., LTD., 56.
For details, please refer to Note 7 “Changes in the consolidation scope” and Note 8 "Equity in
Other Entities".
2. A check list of corporate names and their abbreviations mentioned in this Report
No. Corporate name Abbreviation
1 Shenzhen Konka Electronics Technology Co., Ltd. Electronics Technology
2 Anhui Konka Zhilian E-Commerce Co., Ltd. Anhui Zhilian
3 Haimen Konka Smart Technology Co., Ltd. Haimen Konka
4 Chengdu Konka Smart Technology Co., Ltd. Chengdu Konka Smart
5 Chengdu Konka Electronic Co., Ltd. Chengdu Konka Electronic
6 Nantong Hongdin Smart Technology Co., Ltd. Nantong Hongdin
7 Shenzhen Youzhihui Technology Co., Ltd. Youzhihui
8 Xiaojia Technology Co., Ltd. Xiaojia Technology
9 Liaoyang Kangshun Smart Technology Co., Ltd. Liaoyang Kangshun Smart
Liaoyang Kangshun Renewable Resources Co., Ltd. Liaoyang Kangshun
10
Renewable
11 Nanjing Konka Electronics Co., Ltd. Nanjing Konka
161
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
Chuzhou Konka Precision Intelligent ManufacturingChuzhou Konka
12
Technology Co., Ltd.
13 Xi'an Huasheng Jiacheng Real Estate Co., Ltd. Xi'an Huasheng
14 GuangDong XingDa HongYe Electronic Co., Ltd. XingDa HongYe
15 Shanghai Xinfeng Zhuoqun PCB Co., Ltd. Shanghai Xinfeng
16 Shenzhen Konka Circuit Co., Ltd. Konka Circuit
17 Suining Konka Soft Electronic Technology Co., Ltd. Konka Soft Electronic
18 Suining Konka Hongye Electronics Co., Ltd. Konka Hongye Electronics
19 Boluo Konka Precision Technology Co., Ltd. Boluo Precision
20 Boluo Konka PCB Co., Ltd. Boluo Konka
21 Xiamen Dalong Trading Co., Ltd. Xiamen Dalong
22 Anhui Konka Tongchuang Electrical Appliances Co., Ltd. Anhui Tongchuang
23 Jiangsu Konka Smart Electrical Appliances Co., Ltd. Jiangsu Konka Smart
24 Anhui Konka Electrical Appliance Technology Co., Ltd. Anhui Electrical Appliance
25 Henan Frestec Refrigeration Appliance Co., Ltd. Frestec Refrigeration
26 Henan Frestec Electrical Appliances Co., Ltd. Frestec Electrical Appliances
27 Henan Frestec Household Appliances Co., Ltd. Frestec Household Appliances
28 Henan Frestec Smart Home Technology Co., Ltd. Frestec Smart Home
29 Shenzhen Konka Investment Holdings Co., Ltd. Konka Investment
30 Yibin Konka Technology Park Operation Co., Ltd. Yibin Konka Technology Park
Shenzhen Konka Capital Equity Investment Management Co.,
31 Konka Capital
Ltd.
32 Shenzhen Konka Industrial Park Development Co., Ltd. Industrial Park Development
33 Konka Suiyong Investment (Shenzhen) Co., Ltd. Konka Suiyong
Shenzhen Kangquan Enterprise Management Consulting Co.,
34 Kangquan Enterprise
Ltd.
35 Shenzhen Konka Suyuan Investment Industrial Co., Ltd. Konka Suyuan
36 Shenzhen Konka Shengxing Industrial Co., Ltd. Shengxing Industrial
37 Shenzhen Konka Zhitong Technology Co., Ltd. Zhitong Technology
38 Konka Factoring (Shenzhen) Co., Ltd. Konka Factoring
39 Beijing Konka Electronic Co., Ltd. Beijing Konka Electronic
40 Konka Financial Leasing (Tianjin) Co., Ltd. Konka Leasing
41 Suining Konka Industrial Park Development Co., Ltd. Suining Konka Industrial Park
Suining Electronic
42 Suining Konka Electronic Technological Innovation Co., Ltd.
Technological Innovation
43 Shanghai Konka Industrial Co., Ltd. Shanghai Konka
44 Yantai Kangjin Technology Development Co., Ltd. Yantai Kangjin
45 Shenzhen Konka Mobile Interconnection Technology Co., Ltd. Mobile Interconnection
46 Sichuan Konka Smart Terminal Technology Co., Ltd Sichuan Konka
162
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
47 Yibin Konka Smart Technology Co., Ltd. Yibin Smart
48 Shenzhen KONSEMI Co., Ltd. Shenzhen KONSEMI
49 Chongqing Konka Technology Development Co., Ltd. Chongqing Konka
50 Hefei KONSEMI Storage Technology Co., Ltd. Hefei KONSEMI
51 Hefei Yihe Electronic Co., Ltd. Yihe Electronic
52 Shenzhen Kanghuijia Technology Co., Ltd. Shenzhen Kanghui Technology
Chongqing Huiying
53 Chongqing Konka Huiying Technology Co., Ltd.
Technology
54 Kowin Memory Technology (Shenzhen) Co., Limited Kowin Memory (Shenzhen)
55 Kowin Memory Technology (Hong Kong) Co., Limited Kowin Memory (Hong Kong)
Konka Xinyun Semiconductor Technology (Yancheng) Co.,Konka Xinyun Semiconductor
56
Ltd.
Konka Industrial and Trade Technology (Shenzhen) Co., Ltd. Industrial and Trade
57
Technology
58 Shenzhen Nianhua Enterprise Management Co., Ltd. Shenzhen Nianhua
59 Konka Huazhong (Hunan) Technology Co., Ltd. Konka Huazhong
60 Shenzhen Wankaida Science and Technology Co., Ltd. Wankaida
Shenzhen Chuangzhi Electrical
61 Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Appliances
62 Suining Jiarun Property Co., Ltd. Suining Jiarun Property
63 Shenzhen Konka Electrical Appliances Co., Ltd. Konka Electrical Appliances
64 Shenzhen E2info Network Technology Co., Ltd. E2info
65 E2info (Hainan) Network Technology Co., Ltd. E2info (Hainan)
66 Anhui Konka Electronic Co., Ltd. Anhui Konka
67 Anhui Kangzhi Trade Co., Ltd. Kangzhi Trade
Telecommunication
68 Shenzhen Konka Telecommunications Technology Co., Ltd.
Technology
69 Konka Mobility Co., Limited Konka Mobility
70 Dongguan Kangjia New Materials Technology Co., Ltd. Dongguan Kangjia
71 Dongguan Konka Electronic Co., Ltd. Dongguan Konka
72 Suining Konka Smart Technology Co., Ltd. Suining Konka Smart
Chongqing Konka Optoelectronic Technology ResearchChongqing Optoelectronic
73
Institute Co., Ltd. Technology Research Institute
74 Yibin Kangrun Environmental Technology Co., Ltd. Yibin Kangrun
75 Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd. Yibin Kangrun Medical
Yibin Kangrun Environmental Protection Power GenerationYibin Kangrun Environmental
76
Co., Ltd. Protection
77 Ningbo Khr Electric Appliance Co., Ltd. Ningbo Khr Electric Appliance
78 Jiangxi Konka New Material Technology Co., Ltd. Jiangxi Konka
Jiangxi High Transparent Substrate Material Technology Co.,Jiangxi High Transparent
79 Ltd. (formerly known as “Jiangxi Golden Phoenix Substrate (formerly known as
Nano-Grystallized Glass Co., Ltd.”) “Nano-Grystallized Glass”)
163
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
Jiangsu Konka Special Material Technology Co., Ltd. Jiangsu Konka Special
80
Material
81 Jiangxi Xinfeng Microcrystalline Jade Co., Ltd. Xinfeng Microcrystalline
82 Konka Huanjia Environmental Technology Co., Ltd. Konka Huanjia
83 Konka Huanjia (Henan) Environmental Technology Co., Ltd. Konka Huanjia (Henan)
84 Shandong Econ Technology Co., Ltd. Econ Technology
Econ Environmental Engineering Co., Ltd. Econ Environmental
85
Engineering
86 Beijing Econ Runfeng Technology Co., Ltd. Beijing Econ
87 Binzhou Econ Zhongke Environmental Technology Co., Ltd. Binzhou Econ Zhongke
88 Dayi Kangrun Water Co., Ltd. Dayi Kangrun Water
89 Tingyuan Environmental Technology (Shanghai) Co., Ltd. Tingyuan Environmental
90 Shanghai Jiyi Environmental Technology Co., Ltd. Shanghai Jiyi
91 Kangrunhong Environmental Technology (Yantai) Co., Ltd. Kangrunhong Environmental
92 Donggang Kangrun Environmental Management Co., Ltd. Donggang Kangrun
93 Gaoping Kangrun Environmental Protection & Water Co., Ltd. Gaoping Kangrun
94 Xi’an Gaoling Kangrun Environmental Engineering Co., Ltd. Xi’an Kangrun
95 Changning Kangrun Water Co., Ltd. Changning Kangrun
Lushan Kangrun Environmental Management Co., Ltd. Lushan Kangrun
96
Environmental
Tongchuan Kangrun Honghui Environmental ManagementTongchuan Kangrun Honghui
97
Co., Ltd.
98 Rushan Econ Water Environment Management Co., Ltd. Rushan Econ
99 Mengcheng Kangrun Anjian Water Co., Ltd. Mengcheng Kangrun
100 Chongzhou Kangrun Environment Co., Ltd. Chongzhou Kangrun
101 Suining Pengxi Kangrun Environmental Management Co., Ltd. Suining Pengxi Kangrun
102 Funan Kangrun Water Co., Ltd. Funan Kangrun Water
103 Subei Mongol Autonomous County Kangrun Water Co., Ltd. Subei Kangrun Water
104 Linfen Kangrun Jinze Water Supply Co., Ltd. Linfen Kangrun
105 Wuhan Runyuan Wastewater Treatment Co., Ltd. Wuhan Runyuan Wastewater
106 Binzhou Weiyijie Environmental Technology Co., Ltd. Binzhou Weiyijie
107 Binzhou Beihai Jingmai Industrial Development Co., Ltd. Binzhou Beihai Jingmai
108 Yantai Chunzhiran Environmental Technology Co., Ltd. Chunzhiran
109 Laizhou Lairun Holding Co., Ltd. Lairun Holding
110 Laizhou Binhai Wastewater Treatment Co., Ltd. Binhai Wastewater
Laizhou Lairun Environmental Protection Co., Ltd. Lairun Environmental
111
Protection
112 Laizhou Lairun Wastewater Treatment Co., Ltd. Lairun Wastewater
113 Weifang Sihai Kangrun Investment Operation Co., Ltd. Weifang Sihai Kangrun
164
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
Xixian Kangrun Xijian Water Environment Development Co.,Xixian Kangrun
114
Ltd.
115 Ankang Kangrun Xinheng Water Environment Co., Ltd. Ankang Kangrun
116 Bokang Renewable Resources (Yantai) Co., Ltd. Bokang Renewable
Kangruncheng Environmental Technology (Yantai) Co., Ltd. Kangruncheng Environmental
117
Technology
118 Shaanxi Konka Intelligent Appliance Co., Ltd. Shaanxi Konka Intelligent
119 Shenzhen Konka Pengrun Technology & Industry Co., Ltd. Pengrun Technology
120 Jiaxin Technology Co., Ltd. Jiaxin Technology
121 Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd. Konka Ronghe
122 Chongqing Kangxingrui Environmental Technology Co., Ltd. Chongqing Kangxingrui
Chongqing Kangxingrui Scraped Automobile Recycling Co.,Chongqing Kangxingrui
123
Ltd. Automobile Recycling
Chongqing Kanglei Optoelectronic Technology Co., Ltd. Chongqing Kanglei
124
Optoelectronic
125 Henan Kangxin Property Co., Ltd. Henan Kangxin Property
126 Shenzhen Konka Unifortune Technology Co., Ltd. Konka Unifortune
127 Jiali International (Hong Kong) Limited Jiali International
128 Sichuan Kangjiatong Technology Co., Ltd. Kangjiatong
Kanghong (Yantai)
129 Kanghong (Yantai) Environmental Technology Co., Ltd.
Environmental
Jiangkang (Shanghai)
130 Jiangkang (Shanghai) Technology Co., Ltd.
Technology
Shenzhen Konka Intelligent Manufacturing Technology Co.,Konka Intelligent
131
Ltd. Manufacturing
132 Yantai Laikang Industrial Development Co., Ltd. Yantai Laikang
133 Hainan Konka Material Technology Co., Ltd. Konka Material
134 Konka Ventures Development (Shenzhen) Co., Ltd. Konka Ventures
135 Yibin Konka Incubator Management Co., Ltd. Yibin Konka Incubator
136 Yantai Konka Healthcare Enterprise Service Co., Ltd. Yantai Konka
Chengdu Anren Konka Cultural and Creative Incubator
137 Chengdu Anren
Management Co., Ltd.
138 Guiyang Konka Enterprise Service Co., Ltd. Konka Enterprise Service
139 Nanjing Chuanghui Smart Technology Co., Ltd. Chuanghui Smart
140 Shenzhen Konka Eco-Development Investment Co., Ltd. Konka Eco-Development
141 Shenzhen Kangxin Property Co., Ltd. Shenzhen Kangxin Property
142 Henan Kanghan Property Co., Ltd. Henan Kanghan Property
143 Konka (Europe) Co., Ltd. Konka Europe
144 Hong Kong Konka Limited Hong Kong Konka
145 Kangxin Semiconductor (Yantai) Co., Ltd. Kangxin Semiconductor
146 Hongdin International Trading Limited Hongdin Trading
165
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
147 Konka North America LLC Konka North America
148 Kanghao Technology Co., Ltd. Kanghao Technology
149 Hongdin Invest Development Limited Hongdin Invest
Chain Kingdom Memory Technologies Co., Limited Chain Kingdom Memory
150
Technologies
Chain Kingdom Memory Technologies (Shenzhen) Co.,Chain Kingdom Memory
151
Limited Technologies (Shenzhen)
Hefei Chain Kingdom Memory Technologies Co., Limited Hefei Chain Kingdom Memory
152
Technologies
153 KK Smartech Limited KK Smartech
154 Hongjet (Hong Kong) Company Limited Hongjet
155 Yantai Kangyun Industrial Development Co., Ltd. Yantai Kangyun
156 Yantai Kangyun Property Development Co., Ltd. Yantai Kangyun Property
157 Xi'an Feihe Real Estate Development Co., Ltd. Xi'an Feihe
Chongqing Xinyuan Semiconductor Co., Ltd. Chongqing Xinyuan
158 Semiconductor
159 Jiangxi Konka Industrial Park Development Co. Ltd. Jiangxi Konka Industrial Park
160 Ruichang Kangrui Real Estate Co., Ltd. Ruichang Kangrui Real Estate
161 Konka Industrial Development (Wuhan) Co., Ltd. Industrial development in Wuhan
162 Shenzhen Kangxiaojia Digital Information Technology Co., Ltd. Kangxiaojia Digital
Shenzhen Kanghong Dongsheng Investment Partnership
163 Kanghong Dongsheng
(Limited Partnership)
164 Shenzhen Yijiakang Smart Terminal Technology Co., Ltd. Yijiakang Smart Terminal
165 E2info (Chongqing) Network Technology Co., Ltd. Chongqing E2info
166 Lanrun Environment Protection Technology (Yantai) Co., Ltd. Lanrun Environmental Protection
Guizhou Kangkai Material Technology Co., Ltd. Guizhou Kangkai Material
167 Technology
Guizhou Konka New Material Technology Co., Ltd. Guizhou Konka New Material
168 Technology
169 Guizhou Kanggui Energy Co., Ltd. Guizhou Kanggui Energy
170 Guangdong Xinwei Semiconductor Co., Ltd. Guangdong Xinwei
171 Chongqing Kangxingrui Renewable Resources Co., Ltd. Kangxinrun Renewable Resources
Guizhou Kanggui Material Technology Co., Ltd. Guizhou Kanggui Material
172 Technology
173 Sichuan Chengrui Real Estate Co., Ltd. Sichun Chengrui
174 Chongqing Jiarun Real Estate Co., Ltd. Chongqing Jiarun
175 Nantong Kanghai Technology Industry Development Co., Ltd. Nantong Kanghai
176 Chongqing Kangyiyun Business Operation Management Co., Ltd. Chongqing Kangyiyun
III. Basis for the Preparation of Financial Statements
1. Basic for the preparation
166
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
With the going-concern assumption as the basis and based on transactions and other events that
actually occurred, the Group prepared financial statements in accordance with the Accounting
Standards for Business Enterprises issued by the Ministry of Finance and other regulations as
well as the accounting policies and estimations stipulated in the Note IV “Significant Accounting
Policies and Estimations”.
2. Going-concern
The Group has a recent history of profitable operations supported by financial resources and considers
it reasonable to prepare the financial statements on a going concern basis.
IV. Important Accounting Policies and Estimations
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually and completely present the
Group’s financial positions, business results and cash flows, and other relevant information.
2. Fiscal Period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to
the Gregorian calendar.
3. Operating Cycle
The normal operating cycle refers to the period from the purchase of assets for processing to the
realization of cash or cash equivalents by the Group. An operating cycle for the Group is 12 months,
which is also the classification criterion for the liquidity of its assets and liabilities.
4. Recording Currency
The Group adopted RMB as the bookkeeping base currency.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not
under the Same Control
As the combining party, the assets and liabilities obtained by the Group in a business combination
under the same control shall be measured on the basis of their carrying value in the final
controlling party on the combining date. As for the balance between the carrying value of the net
assets obtained and the carrying value of the consideration paid by it, the capital reserve shall be
adjusted. If the capital reserve is not sufficient to be offset, the retained earnings shall be adjusted.
The identifiable assets, liabilities and contingent liabilities of the acquiree acquired in the
business combination under different control shall be measured at fair value on the acquisition
date. The merger cost is the sum of the fair value of cash or non-cash assets, liabilities issued or
assumed, equity securities issued, etc. paid by the Group on the purchase date to gain control over
the purchased party and all directly related expenses incurred in the business combination (The
merge cost of business combination realized step by step through multiple transactions is the sum
of every single transaction’s cost). The balance that the combined cost greater than the fair value
share of the identifiable net assets of the purchased party obtained in the combination shall be
recognized as goodwill; When the merger cost is less than the fair value share of the identifiable
net assets of the acquiree acquired in the merger, the fair value of all identifiable assets, liabilities
and contingent liabilities acquired in the merger, and non-cash assets of the merger consideration
or equity securities issued, etc. shall be reviewed first. After review, if the merger cost is still less
than the fair value share of the identifiable net assets of the acquiree acquired in the merger, the
difference shall be included in the non-operating income of the merger period.
6. Methods for Preparing Consolidated Financial Statements
The scope of consolidation includes all controlled subsidiaries and structural entities.
167
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Group during the preparation of the consolidated financial
statements, where the accounting policies and the accounting periods are inconsistent between the
Group and subsidiaries.
All significant internal transactions, current balances and unrealized profits within the scope of
consolidation shall be offset when preparing the consolidated statement. The shares of the
subsidiary's owner's equity that do not belong to the parent Group and the shares of minority
shareholders' equity in current net profit and loss, other comprehensive income and total
comprehensive income shall be respectively listed in the consolidated financial statement
"Minority shareholders' equity, minority shareholders' profit and loss, other comprehensive
income that belongs to minority shareholders and total comprehensive income that belongs to
minority shareholders".
For subsidiaries acquired through merger of enterprises under the same control, their operating
results and cash flows are included in the consolidated financial statements from the beginning of
the current merger period. When preparing the comparative consolidated financial statements, the
relevant items in the financial statements of the previous year shall be adjusted as if the
consolidated reporting entity had existed since the final controlling party began to control it.
The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
the same control is acquired step by step through multiple transactions, and finally form the
business combination, when preparing the consolidated statement, it shall be deemed as the
adjustment is made in the current state when the final controlling party starts to control. And
when compiling the comparative report, the assets and liabilities of the merged party shall be
merged into the comparative statement of the consolidated financial statements of the
consolidated Group without any earlier than the time when the Group and the merged party are
under the control of the ultimate controlling party, and the combined net increased assets shall be
adjusted to the relevant items under owners' equity in the comparative statements. In order to
avoid the re-calculation of the net assets value of the merged party, the long-term equity
investment held by the Group before the merger, the confirmed relevant profit and loss on the
same party with the Group and the merged party on the date of acquisition of the original equity
from the final control date to the merger date, and changes of other comprehensive income and
other net assets shall offset the beginning retained earnings and current profits and losses of the
comparative statement period respectively.
For subsidiaries acquired through business combination under the different control, the operating
results and cash flow shall be included in the consolidated financial statements from the date
when the Group obtains the control right. When preparing the consolidated financial statements,
the financial statements of the subsidiaries shall be adjusted on the basis of the fair value of the
identifiable assets, liabilities and contingent liabilities determined on the acquisition date.
The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
not under the same control is successively obtained through several transactions and eventually
the enterprise merger is conducted. For example: At the occasion of the equity of the investee
under different control is acquired step by step through multiple transactions and eventually form
the business combination, when preparing the consolidated statement, the equity of the investee
held before the purchase date is re-measured according to the fair value of the equity on the
purchase date, and the difference between the fair value and its book value is included in the
current investment income. The equity of the acquiree held before the relevant purchase date
involves other comprehensive income under the equity method and other changes in owner's
equity other than net profit and loss, other comprehensive income and profit distribution, which
are converted into investment profit and loss in the current period of the purchase date, except for
other comprehensive income arising from the remeasurement of defined benefit plans's net
168
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
liabilities or changes in net assets by the investee.
The Group partially disposes of long-term equity investments in subsidiaries without losing
control, when preparing the consolidated financial statements, the difference between the disposal
price and the share of net assets that the subsidiaries have continuously calculated since the date
of purchase or the date of consolidation is corresponding to the disposal of long-term equity
investments. The capital premium or equity premium is adjusted. If the capital reserve is
insufficient to offset, the retained earnings are adjusted.
If the Group loses control over the investee due to the disposal of some equity investments and
other reasons, the remaining equity shall be re-measured at its fair value on the date of loss of
control when preparing the consolidated financial statements. The difference between the sum of
the consideration obtained from the disposal of equity and the fair value of the remaining equity,
minus the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger, is included in
the investment profit and loss of the current period when the control right is lost, and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment, etc.,
will be transferred to the current investment profit and loss when the control right is lost.
If the Group disposes of the equity investment in a subsidiary Group step by step through
multiple transactions until the loss of control right, if the transactions of the disposal of the equity
investment in a subsidiary Group until the loss of control right belong to a package transaction,
the transactions shall be treated as transactions of the disposal of the subsidiary Group and the
loss of control right for accounting. However, the difference between the disposal price and the
share of the subsidiary's net assets corresponding to the disposal investment before the loss of
control right is recognized as other comprehensive income in the consolidated financial
statements, and is transferred to the investment profit and loss of the current period when the
control right is lost.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
The Group classifies joint arrangements into joint operations and joint ventures. For a joint
operation, the Group, as a joint operator, recognizes the assets and liabilities that it holds and
bears in the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities
according to the Group’s stake in the joint operation; recognizes relevant income and expense
according to the Group’s stake in the joint operation. When the Group purchases or sells the
assets not constituting business with the joint operation, the Group only recognized the share of
the other joint operators in the gains and losses arising from the transaction.
8. Cash and Cash Equivalents
In the Group’s understanding, the cash in the cash flow statement includes cash on hand and
deposits that can be used for cover, the cash equivalents in the cash flow statement include high
circulating investments held within three months which are easily convertible into known amount
of cash and whose risks in change of value are minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency transaction
As for foreign currency transaction, the Group converted the foreign currency amount into RMB
amount at the exchange rate at the beginning of the month of transaction occurrence date
(normally referred to as the central parity rate of foreign exchange rate on the same day published
by the People’s Bank of China, the same below). On the balance sheet date, the monetary items in
foreign currency were converted into RMB at the spot exchange rate on balance sheet date.
Except the exchange difference arising from special foreign-currency borrowing for the purpose
of construction or production of assets meeting capitalization conditions treated in the principle of
capitalization, the conversion difference was directly included in the current profits and losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot
169
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
exchange rate on balance sheet date; except for “undistributed profit”, owner’s equity items were
converted at the sport exchange rate at the time of business occurrence; income and expenditure
items in income statement were converted at the average exchange rate for the period (monthly
average exchange rate) of the transaction occurrence date. The conversion difference of foreign
currency statements arising from the aforementioned conversion was presented in other
comprehensive income item. The foreign currency cash flow was converted at the average
exchange rate for the period (monthly average exchange rate) of the cash flow occurrence date.
The amount of exchange rate change influence on cash was independently presented in cash flow
statement.
10. Financial Assets and Financial Liabilities
The Group recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.
(1) Financial assets
1) Classification, recognition and measurement of financial assets
The Group classifies the financial assets into financial assets measured at amortized cost,
financial assets measured by the fair value and the changes recorded in other comprehensive
income and financial assets at fair value through profit or loss based on the business model for
financial assets management and characteristics of contractual cash flow of financial assets
The Group classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: ①The business mode of the Group to manage the financial
assets targets at collecting the contractual cash flow. ②The contract of the financial assets
stipulates that the cash flow generated in the specific date is the payment of the interest based on
the principal and outstanding principal amount. These financial assets initially measured at fair
value and relevant transaction cost shall be included into the initial recognized amount and
subsequently measured at amortized cost. Except for those designated to be hedge items, the
difference between the initial recognized amount and the amount due shall be amortized at actual
interest rate and their amortization, impairment and exchange gain and loss as well as gains or
losses arising from derecognition shall be recorded into the current profit or loss.
The Group classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: ①The Business mode for
managing financial assets of the Group takes contract cash flow collected as target and selling as
target. ②The contract of the financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. These
financial assets initially measured at fair value and relevant transaction cost shall be included into
the initial recognized amount. Except for those designated as hedged items, as for these financial
assets, except for gains or losses on credit impairment, exchange gain and loss and interest of
financial assets measured at actual interest rate, other gains or losses generated shall be recorded
into other comprehensive income. When derecognized, the accumulated gains and losses
originally recorded into other comprehensive income shall be transferred out into the current
profit or loss.
The Group recognizes interest income according to the effective interest rate method. Interest
income is calculated and determined according to the book balance of the financial asset
multiplied by the actual interest rate, except for the following circumstances: ① For the financial
asset with credit impairment that has been purchased or originated, from the initial recognition,
the interest income is calculated and determined according to the amortized cost of the financial
asset and the actual interest rate adjusted by credit. ② For financial assets purchased or originated
that have not suffered credit impairment but have suffered credit impairment in subsequent
periods, the interest income shall be calculated and determined according to the amortized cost
and actual interest rate of the financial assets in subsequent periods.
The Group designates non-transactional investment in equity instruments as financial assets at
fair value through other comprehensive income. Those designated non-transactional investment in
170
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
equity instruments by the Group is initially measured at fair value and relevant transaction cost
shall be recorded into the initial recognized amount. Except for dividends (excluding those
belonging to recovery of investment cost) which shall be recorded into the current profit or loss,
other relevant gains and losses (including exchange gains and losses) shall be recorded into other
comprehensive income and cannot be transferred into the current profit or loss subsequently.
When derecognized, the accumulated gains or losses originally recorded into other
comprehensive income shall be transferred out into retained earnings. Equity instrument
investments measured at fair value through other comprehensive income included: Equity
investments to be held in the long term as planned by the Group for strategic purpose, with no
control, joint control or significance influence, and with no active market quotation.
The Group classifies financial assets not belonging to above two as financial assets at fair value
through profit or loss which shall be initially measured at fair value and relevant transaction cost
shall be directly recorded into the current profit or loss. Gains or losses arising from these
financial assets shall be recorded into the current profit or loss.
The contingent consideration recognized by the Group in the business combination not under the
same control which constitutes a financial asset shall be classified as the financial asset at fair
value through profit or loss.
2) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired; 2) the enterprise has transferred its
rights to receive cash flows from the asset to a third party under a pass-through arrangement; or 3)
the enterprise has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the overall transfer of financial assets fulfills the requirements for derecognition, the difference
between the book value of the transferred financial assets and the sum of the consideration
received due to the transfer and the corresponding derecognition part of the accumulated amount
of fair value changes originally directly included in other comprehensive income (the contract
terms involving the transferred financial assets stipulate that the cash flow generated on a specific
date is only the payment of the principal and interest based on the unpaid principal amount) shall
be included in the current profits and losses.
If the partial transfer of financial assets satisfies the conditions for termination confirmation, the
entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values, and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally
included in other comprehensive income that should be apportioned to the derecognition part And
the payment of interest based on the outstanding principal amount), and the difference between
the total book value of the aforesaid financial assets allocated is included in the current profit and
loss.
(2) Financial liabilities
1) Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at
fair value through profit or loss and other financial liabilities.
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
and financial liabilities designated at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss. The subsequent measurement shall be at
fair value and gains or losses arising from changes in fair value and the dividends and interest
expense related to the financial liability shall be the current profit or loss.
Other financial liabilities shall be subsequently measured at amortized cost with actual interest
rate. The Group classifies financial liabilities except for the following items as financial liabilities
at amortized cost: ①Financial liabilities at fair value through profit or loss including
held-for-trading financial liabilities (including the derivative instruments belonging to financial
171
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
liabilities) and designated financial liabilities at fair value through profit or loss. ②Financial
liabilities arising from the transfer of financial assets not meeting the derecognition conditions or
continuous involvement in the transferred financial assets. ③Financial guarantee contract not
belonging to cases of above ① or ② and loan commitments at interest rate lower than the market
rate not belonging to the case in ①.
The Group treats the financial liability arising from contingent consideration recognized as the
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.
2) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being
terminated, derecognition of such financial liabilities (or partial financial liabilities) is conducted
by the Group. If the Group (borrower) concludes an agreement with the lender to replace existing
financial liabilities with new ones and contact terms of new financial liabilities are different from
those of existing financial liabilities, derecognition of existing financial liabilities and recognition
of new financial liabilities shall be conducted. In case of material alteration of contract terms of
existing financial liabilities (partial financial liabilities) by the Group, derecognition of existing
financial liabilities and recognition of new financial liabilities as per modified terms shall be
conducted. In case of derecognition of financial liabilities (partial financial liabilities), the Group
includes the balance between its carrying value and payment consideration into the current profit
or loss.
(3) Determination of financial assets and liabilities’ fair value
The Group measured the fair value of financial assets and financial liabilities according to the
price at major market. If major market does not exist, the fair value of financial assets and
financial liabilities was measured according to the price at the most advantageous market through
applying valuation technique applicable at the time and with sufficient usable data and other
information support. The inputs for fair value measurement were classified into three levels.
Level 1 is the unadjusted quotation of the same assets or liabilities on active market available on
the measurement date. Level 2 is the input of relevant assets or liabilities other than that in level 1
that are observable either directly or indirectly. Level 3 is the unobservable input of relevant
assets or liabilities. The Group preferred level 1 input, and applied level 3 input at last. Level 1
input was applicable for listed stock and bond held by the Group, level 2 input for financing of
accounts receivable (mainly bank acceptance bill and trade acceptance bill meeting derecognition
requirements after transfer), and level 3 input for other non-current financial assets (unlisted
equity investment held by the Group) and held-for-trading financial assets (mainly financial
products held by the Group). The level attributed to the fair value measurement result was
determined according to the lowest level of the input with much significance to fair value
measurement in general.
The Group measured the investment of equity instruments at fair value. However, under limited
situation, if the recent information for determining the fair value was insufficient, or the potential
estimated amount of fair value was in wide range, and the cost represented the optimal estimation
of fair value in such range, such cost could represent appropriate estimation of fair value in such
range. Such equity instrument investments included: Equity investments held by the Group
measured at fair value with changes included in the current profits and losses with no control,
joint control or significance influence; non-trading equity instrument investments were designated
as financial assets measured at fair value through other comprehensive income.
(4) Offsetting financial assets and financial liabilities
The Group’s financial assets and liabilities shall be separately presented in the balance sheet and
not set off each other. But when meeting the following conditions at the same time, the net
amount after offset shall be presented in the balance sheet: (1) The Group has the statutory right
to set off recognized amount which is currently executable; (2) The Group plans to settle with the
net amount or realize the financial asset and pay off the financial liability simultaneously.
(5) The distinction between financial liabilities and equity instruments and related treatment
172
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
methods
The Group distinguishes the financial liabilities and equity instruments according to the following
principles: (1) If the Group cannot unconditionally avoid performing a contractual obligation by
delivering cash or other financial assets, the contractual obligation meets the definition of
financial liabilities. Although some financial instruments do not explicitly include the terms and
conditions of the obligation to deliver cash or other financial assets, they may indirectly form
contractual obligations through other terms and conditions. (2) If a financial instrument must be
settled with or can be settled with the Group's own equity instrument, it is necessary to consider
whether the Group's own equity instrument used to settle the instrument is used as a substitute for
cash or other financial assets, or to enable the holder of the instrument to enjoy the residual equity
in the assets of the issuer after deducting all liabilities. If it belongs to the former condition, the
instrument is the financial liability of the issuer; if it belongs to the latter condition, the instrument
is the equity instrument of the issuer. In some cases, a financial instrument contract requires the
Group to use or use its own equity instrument to settle the financial instrument, in which the
amount of contractual rights or contractual obligations is equal to the number of its own equity
instruments available or to be delivered multiplied by its fair value at the time of settlement,
regardless of whether the amount of contractual rights or obligations is fixed, whether it is
entirely or partially based on changes in variables other than the market price of the Group's own
equity instruments, the contract shall be classified as a financial liability.
In classifying financial instruments (or their components) in the consolidated statement, the
Group has taken into account all terms and conditions reached between the Group members and
the holders of financial instruments. If the Group as a whole undertakes the obligation to deliver
cash, other financial assets or settle accounts in other ways that cause the instrument to become a
financial liability due to the instrument, the instrument shall be classified as a financial liability.
If financial instruments or their components are financial liabilities, the Group will include
interest, dividends (or dividends), gains or losses, and gains or losses arising from redemption or
refinancing, etc. in the current profits and losses.
If financial instruments or their components are equity instruments, when they are issued
(including refinancing), repurchased, sold or cancelled, the Group will treat them as changes in
equity and will not recognize changes in the fair value of equity instruments.
11. Impairment of Financial Assets
The Group needs to confirm that the financial assets subject to the impairment loss are the
financial assets measured based on the amortized cost, the debt instrument investment measured
based on the fair value with its variations included into other comprehensive incomes and the
lease outlay receivable, mainly including notes receivable, account receivable, other receivables,
investment on creditor’s rights, other investments on creditor’s rights and long-term receivables
etc. Besides, in respect of the contract assets and partial financial guarantee contract,
corresponding impairment provisions shall be calculated and withdrawn and corresponding credit
impairment losses recognized according to various accounting policies mentioned in this part.
(1) Methods for the Recognition of Impairment Provisions
For all mentioned items above, the Group shall calculate and withdraw corresponding impairment
provisions and recognize corresponding credit impairment losses according to applicable
expected credit loss measurement methods (general methods or simplified methods) with the
expected credit loss as the basis.
Credit loss refers to the difference between all receivable contract cash flows and all expected
cash flows that are discounted to the present value based on the original actual interest rate -- the
present value of all cash shortfall. However, for the purchased or original financial assets subject
to the credit impairment, the Group shall realize the discounting based on the actual interest rate
subject to the credit adjustment.
General methods applied to measure the expected credit loss can be described as: the Group shall
evaluate whether the credit risk of the financial assets (including the contract assets and other
applicable items; the same below) increases remarkably after the initial recognition on the balance
173
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
sheet day; if the credit risk increases remarkably after the initial recognition, the Group shall
measure the provision for loss based on the specific expected credit loss amount during the entire
period of existence; if not, the Group shall measure the provision for loss based on the specific
expected credit loss amount in the following 12 months. While evaluating the expected credit loss,
the Group shall take all reasonable and well-founded information into consideration, including the
forward-looking information.
For the financial instrument of lower credit risk on the balance sheet day, the Group shall assume
that its credit risk does not increase remarkably after the initial recognition, and corresponding
provision for loss shall be measured according to the expected credit loss in the following 12
months.
(2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial
Recognition
If any financial assets’ probability of default within the expected period of existence determined
on the balance sheet day is obviously higher than that within the expected period of existence
determined during the initial recognition, it shall indicate the remarkable increase of the financial
assets’ credit risk. Unless it is under special circumstances, the Group shall adopt various
variations in the default risk in the following 12 months as the reasonable basis for estimating
corresponding variations in the default risk within the entire period of existence and determining
whether the credit risk increases remarkably after the initial recognition.
(3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk, the Group shall separately evaluate
its credit risk, including the receivables from related parties, receivables involved in any dispute
with the other party or any lawsuit and arbitration, and receivables with obvious evidence
showing that the debtor cannot fulfill the due payment obligation etc.
Except for the financial assets whose credit risk shall be separately evaluated, the Group shall
divide these financial assets into different combinations based on the specific risk features, on
which basis, corresponding credit risks can be evaluated.
(4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period, the Group shall calculate the expected credit losses of various financial
assets. If the expected credit loss is higher than the carrying amount of its current impairment
provision, the difference shall be recognized as the impairment loss; if lower, the difference shall
be recognized as the gain from the impairment.
12. Notes Receivable
For notes receivable, the Group shall measure the provision for loss based on the specific
expected credit loss during the entire period of existence. According to the credit risk
characteristics thereof, except those with separate evaluation of credit risk, notes receivable can
be divided into different combinations:
Item Basis
The Accepter shall be the bank with high credit level and low
Bank Acceptance
risks
Classified by credit risk of acceptors (the same as accounts
Trade Acceptance
receivable)
13. Accounts Receivable
For account receivable and contract assets excluding significant financing composition, the Group
shall measure the provision for loss according to the specific expected credit loss amount within
the entire period of existence.
For account receivable, contract assets and lease payment receivable including significant
financing composition, the Group shall always measure the provision for loss according to the
specific expected credit loss amount within the period of existence.
174
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Except the account receivable and contract assets whose credit risks shall be separately evaluated,
the Group shall divide them into different combinations based on the specific credit risks:
Item Basis
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.
Project Funds
This portfolio is the project-related receivables.
Combination
Related party combination The accounts receivable within the scope of consolidation
14. Accounts Receivable Financing
The Group’s accounts receivable financing is based on expected credit losses, and provision is
made for depreciation reserves in accordance with the expected credit loss measurement method
for notes receivable.
15. Other Receivables
The Group measures the loss reserves on other receivables in accordance with the following
circumstances: a) For financial assets whose credit risk has not significantly increased since the
initial recognition, the Group measures the loss reserves at the amount of expected credit losses
for the next 12 months; b) For financial assets whose credit risk has increased significantly since
the initial recognition, the Group measures the loss reserves at an amount equal to the expected
credit losses for the entire period of the financial instrument; c) For financial assets purchased or
originated from credit impairment, the Group measures the loss reserves at an amount equal to the
expected credit losses over the entire period of the financial instrument. Except other receivables
whose credit risks shall be separately evaluated, the Group shall divide them into different
combinations based on the specific credit risk features:
Item Basis
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.
This combination shall regard other receivables of extremely low
Low Risk Combination risk (including the revolving fund, the cash deposit and the guarantee
deposit) as the credit risk feature.
Related party
Other receivables within the scope of consolidation.
combination
16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases remarkably
after the initial recognition, the Group shall measure the impairment loss based on the specific
expected credit loss in the following 12 months or during the entire period of existence. Except
long-term account receivables whose credit risks shall be separately evaluated, the Group shall
divide them into different combinations based on the specific credit risk features:
Item Basis
Financing Lease Regarding the long-term receivables related to the financing lease as the
Combination credit risk characteristics
Franchise Regarding the long-term receivables related to the PPP Project as the
Combination credit risk characteristics
17. Inventories
The Group's inventories mainly include raw materials, products in process, semi-finished
175
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
products, and entrusted processing materials.
The perpetual inventory method is used for inventories. Inventories are priced at the actual cost at
the time of acquisition; the actual cost of inventories is determined by the weighted average
method when inventories are claimed or issued. Low-value consumables and packaging are
amortized through the one-off charge-off method.
The net realizable value of inventories of goods that are used directly for sale, such as inventory
goods, products in process, and materials for sale, is determined by the estimated selling price of
the inventory minus estimated sale expenses, and related taxes; the net realizable value of
inventories of materials held for production is determined by the estimated selling price of the
finished goods produced minus the estimated costs of completion, estimated sale expenses, and
related taxes.The inventories with various numbers and low unit price shall be made provisions
for depreciation reserves of inventories according to the category of inventories. For inventories
that are produced and sold in the same region with same or similar end use or purposes, and hard
to be measured separately from other items, it shall be made merger provisions for falling price of
inventories.
The net realizable value refers, in the ordinary course of business, to the account after deducting
the estimated cost of completion, estimated sale expense and relevant taxes from the estimated
sale price of inventories. The net realizable value of inventories shall be fixed on the basis of
valid evidence as well as under consideration of purpose of inventories and the effect of events
after balance-sheet-date.
After withdrawing the depreciation reserves for inventories, if the factors, which cause any
write-down of the inventories, have disappeared, causing the net realizable value of inventories is
higher than its carrying amount; the amount of write-down shall be reversed from the original
amount of depreciation reserve for inventories. The reversed amount shall be included in the
profits and losses of the current period.
18. Contract Assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Group to receive consideration after transferring goods to
customers, and this right depends on factors other than the passage of time. If the Group sells two
clearly distinguishable products to customers, it has the right to receive payment because one of
the products has been delivered, but the payment is also dependent on the delivery of the other
product, the Group has the right to receive payment as a contract assets.
(2) Determination method and accounting treatment method of expected credit loss of contract
assets
The method of determining the expected credit loss of contract assets, refer to the description of
11. Financial Asset Impairment, 12. Notes Receivable, 13. Accounts Receivable.
The Group calculates the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the book value of the current contract asset impairment
provision, the Group will recognize the difference as an impairment loss and debit the "asset
impairment loss". Credited "Contract asset impairment provision". On the contrary, the Group
recognizes the difference as an impairment gain and keeps the opposite accounting records.
If the Group actually incurs credit losses and determines that the relevant contract assets cannot
be recovered, and the written-off is approved, the "contract asset impairment reserve" is debited
and the "contracted asset" is credited based on the approved write-off amount. If the written-off
amount is greater than the provision for loss that has been withdrawn, the "asset impairment loss"
is debited based on the difference.
19. Contract Costs
(1) The method of determining the amount of assets related to contract costs
The Group’s assets related to contract costs include contract performance costs and contract
acquisition costs.
The contract performance cost, that is, the cost incurred by the Group for the performance of the
176
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
contract, does not fall within the scope of other accounting standards and meets the following
conditions at the same time, as the contract performance cost is recognized as an asset: the cost
and a current or expected contract Directly related, including direct labor, direct materials,
manufacturing expenses, clearly the cost borne by the customer, and other costs incurred only due
to the contract; this cost increases the Group's future resources for fulfilling its performance
obligations; This cost is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the Group to obtain the
contract is expected to be recovered, and is recognized as an asset as the contract acquisition cost;
if the asset amortization period does not exceed one year, it is included in the current profit and
loss when it occurs. Incremental cost refers to the cost (such as sales commission, etc.) that the
Group will not incur without obtaining the contract. The Group's expenses incurred in obtaining
the contract, other than the expected incremental cost that can be recovered (such as travel
expenses incurred regardless of whether the contract is obtained, etc.), are included in the current
profit and loss when they are incurred, but it is clearly borne by the customer except.
(2) Amortization of assets related to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the commodity
revenue recognition related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Group determines the impairment loss of assets related to contract costs, it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant business accounting standards; then, based on their book value
higher than the Group’s transfer and If the difference between the remaining consideration that
the asset-related commodity is expected to obtain and the estimated cost incurred for the transfer
of the relevant commodity, the excess shall be provided for impairment and recognized as an
asset impairment loss.
If the depreciation factors of the previous period have changed, and the aforementioned difference
is higher than the book value of the asset, the original provision for asset impairment shall be
reversed and included in the current profit and loss, but the book value of the asset after the
reversal shall not exceed Assuming no provision for impairment is made, the book value of the
asset on the date of reversal.
20. Long-term Equity Investments
The Group's long-term equity investments mainly consist of investments in subsidiaries,
associated enterprises, and joint ventures.
The Group’s judgment on joint control is based on the fact that all participants or a combination
of participants collectively control the arrangement and that the policies of the activities related to
the arrangement shall be unanimously agreed by those participants who
The Group is generally considered to have a significant influence on the investee when it owns,
directly or indirectly through a subsidiary, above 20% but below 50% of the voting rights of the
investee. If the Group holds less than 20% of the voting rights of the investee, it also needs to
judge whether the Group has a significant influence on the investee by taking into account the
facts and circumstances such as having representatives on the board of directors or similar
authority of the investee, or participating in the process of formulating financial and operating
policies of the investee, or having major transactions with the investee, or sending management
personnel to the investee, or providing key technical information to the investee.
If control over the investee is formed, it is a subsidiary of the Group. For long-term equity
investment acquired through business combination under the same control, the initial investment
cost of the long-term equity investments is recorded at the merger date based on the acquisition of
the merged party's share of the book value of the net assets of the ultimate controller in the
consolidated financial statement. If the book value of the net assets of the merged party on the
merger date is negative, the cost of long-term equity investments is determined as zero.
If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the treatment
177
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
of long-term equity investments in the parent Group's financial statements shall be made in the
Reporting Period in which control is obtained. For example, if the business combination that is
ultimately formed through multiple transactions to acquire the equity of the investee under the
same control belongs to a package deal, the Group shall conduct accounting treatment to treat
each transaction as a single transaction to acquire control. If the transaction is not a package deal,
the initial investment cost of the long-term equity investment is based on the share of the book
value of the net assets of the merged party in the consolidated financial statements of the ultimate
controller at the merger date. The difference between the initial investment cost and the sum of
the book value of the long-term equity investment before the merger plus the book value of the
new consideration paid for further acquisition of shares at the merger date shall offset against
capital reserve; and where capital reserve is insufficient to be offset, the retained earnings shall be
adjusted.
For long-term equity investment acquired through business combination not under the same
control, the initial investment cost shall be the consolidation cost.
If the equity of the investee not under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the cost
treatment of long-term equity investments in the parent Group's financial statements shall be
made in the Reporting Period in which control is obtained. For example, if the business
combination that is ultimately formed through multiple transactions to acquire the equity of the
investee not under the same control belongs to a package deal, the Group shall conduct
accounting treatment to treat each transaction as a single transaction to acquire control. If the
transaction is not a package deal, the sum of the book value of the equity investment originally
held plus the cost of the new investment shall be the initial investment cost calculated in
accordance with the cost method. If the equity held prior to the purchase date is accounted by the
equity method, the relevant other comprehensive income accounted by the original equity method
shall not be adjusted. The same basis of accounting as that used for the direct disposal of the
related assets or liabilities by the investee is used for the disposal of the investment. If the equity
held prior to the purchase date is a financial asset designated to be measured at fair value with
fluctuations included in other comprehensive income, the cumulative profit or loss on the equity
previously recognized in other comprehensive income shall be transferred from other
comprehensive income to the retained earnings; if the equity is a financial asset measured at fair
value and the changes of which are included in profits and losses of the current period, the equity
previously recognized as profits and losses from the changes in fair value shall not be transferred
to investment income. If the equity held prior to the purchase date is an investment for other
equity instruments, the changes in fair value of the equity investment accumulated in other
comprehensive income before the purchase date shall be transferred to the retained earnings.
Except for the long-term equity investments acquired through business combination hereinabove,
long-term equity investments acquired by paying cash are recorded as investment cost based on
the actual purchase price paid; long-term equity investments acquired by issuing equity securities
are recorded as investment cost based on the fair value of the equity securities issued; long-term
equity investments invested by investors are recorded as investment cost based on the value
agreed in the investment contract or agreement.
The Group calculates its investments in subsidiaries through the cost method and its investments
in joint ventures and associate enterprises through the equity method.
For long-term equity investments calculated by the cost method for subsequent measurement, the
book value of the cost of long-term equity investments shall be increased by the fair value of the
cost amount paid for the additional investment and relevant transaction costs incurred when the
additional investment is made. Cash dividends or profits declared by the investee are recognized
as investment income for the current period in accordance with the due amount.
In addition to the above-mentioned long-term equity investment obtained through business
combination, the long-term equity investment obtained by paying cash shall be regarded as the
investment cost according to the purchase price actually paid; the long-term equity investment
obtained by issuing equity securities shall be regarded as the investment cost according to the fair
178
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
value of issuing equity securities; the long-term equity investment invested by investors shall be
regarded as the investment cost according to the investment contract or agreement The value of
the Group is regarded as the cost of investment.
The Group adopts the cost method for investment in subsidiaries and the equity method for
investment in joint ventures and associated enterprises.
For the long-term equity investment whose subsequent measurement adopts the cost method,
when the additional investment is made, the book value of the long-term equity investment cost is
increased according to the fair value of the cost amount paid by the additional investment and the
relevant transaction expenses. The cash dividends or profits declared to be distributed by the
investee shall be recognized as the current investment income according to the amount that
should be enjoyed.
For the long-term equity investment with equity method for subsequent measurement, the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee,
the net profit and loss of the investee shall be calculated based on the fair value of the identifiable
assets of the investee at the time of obtaining the investment, in accordance with the accounting
policies and accounting period of the Group, and offset the internal transaction profit and loss
between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.
For disposal of long-term equity investment, the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment
accounted by equity method, other comprehensive income accounted by the original equity
method shall be accounted on the same basis as the investee's direct disposal of relevant assets or
liabilities when the equity method is terminated, and the owner's equity shall be recognized due to
other changes in owner's equity of the investee except net profit and loss, other comprehensive
income and profit distribution When the equity method is terminated, all of them shall be
transferred into the current investment income.
In case of loss of joint control or significant influence on the investee due to the disposal of part
of equity investment, the remaining equity after disposal shall be accounted according to the
relevant provisions of the recognition and measurement standards of financial instruments, and
the difference between the fair value and the book value of the remaining equity on the date of
loss of joint control or significant influence shall be included in the current profits and losses.
When the equity method is terminated, the other comprehensive income of the original equity
investment recognized as a result of its accounting with the equity method shall be handled on the
same basis as the investee's direct disposal of the relevant assets or liabilities and carried forward
in proportion. The owner's equity recognized as a result of the changes in the owner's equity of
the investee other than net profit and loss, other comprehensive income and profit distribution
shall be carried forward in proportion Transfer to current investment income.
If the control over the investee is lost due to the disposal of part of the long-term equity
investment, and the residual equity after disposal can jointly control or exert significant influence
on the investee, it shall be accounted according to the equity method, and the difference between
the book value of the disposal equity and the disposal consideration shall be included in the
investment income, and the residual equity shall be regarded as adjusted by the equity method
when it is obtained If the residual equity cannot exercise joint control or exert significant
influence on the investee, the accounting treatment shall be carried out according to the relevant
provisions of the recognition and measurement standards of financial instruments. The difference
between the book value of the disposal equity and the disposal consideration shall be included in
the investment income, and the difference between the fair value and the book value of the
residual equity on the day of losing control shall be included in the current profits and losses.
If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction, accounting treatment shall be carried out for each transaction separately. If it
is a "package deal", each transaction will be treated as a transaction of disposal of subsidiaries
and loss of control. However, before the loss of control, the difference between the disposal price
179
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
of each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income, and when the control is lost,
it will be transferred to the current account of loss of control Period profit and loss
21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group include the right to use any land which has
already been rented; the right to use any land which is held and prepared for transfer after
appreciation; and the right to use any building which has already been rented. In addition, if the
board of directors (or similar organizations) makes a written resolution to use the vacant buildings
held by the Group for operating lease and the holding intention will not change in a short time,
they will also be listed as investment real estate.
The initial measurement of the investment property shall be made at its cost. Subsequent
expenditures incurred for an investment property is included in the cost of the investment
property when it is probable that economic benefits associated with the investment property will
flow to the Group and the cost can be reliably measured, otherwise the expenditure is recognized
in profit or loss in the period in which they are incurred.
The Group shall make a follow-up measurement to the investment property by employing the cost
pattern on the date of the balance sheet. An accrual depreciation or amortization shall be made for
the investment property in the light of the accounting policies of the use right of buildings or
lands.
For details of impairment test method and withdrawal method of impairment provision of
investment property, please refer to Note IV. 27. “Long-term assets impairment”.
The Group's investment real estate adopts the average life method for depreciation or
amortization. The expected service life, net residual value rate and annual depreciation
(amortization) rate of all kinds of investment real estate shall refer to the depreciation policy of
buildings in fixed assets and the amortization policy of land use right in intangible assets..When
owner-occupied real estate or inventories are changed into investment property or investment
property is changed into owner-occupied real estate, of which book value prior to the change shall
be the entry value after the change.
When an investment property is changed to an owner-occupied real estate, it would be transferred
to fixed assets or intangible assets at the date of such change. When an owner-occupied real estate
is changed to be held to earn rental or for capital appreciation, the fixed asset or intangible asset is
transferred to investment property at the date of such change. If the fixed asset or intangible asset
is changed into investment property measured by adopting the cost pattern, whose book value
prior to the change shall be the entry value after the change; if the fixed asset or intangible asset is
changed into investment property measured by adopting the fair value pattern, whose fair value
on the date of such change shall be the entry value after the change
An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The amount of proceeds on sale, transfer, retirement or damage of an investment property less its
carrying amount and related taxes and expenses is recognized in profit or loss in the period in
which it is incurred.
22. Fixed Assets
The Group’s fixed assets are tangible assets held for the production of goods, provision of
services, rental or operation management and have a useful life of more than one year.
Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Group and their cost can be measured reliably. The Group’s
fixed assets include buildings and constructions, machinery and equipment, electronic equipment,
transportation equipment, and other equipment.
The Group depreciates all fixed assets by straight-line method, except for fully depreciated fixed
assets that continue to be used and land that is separately valued. The categorized depreciable
180
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
lives, estimated net salvage rates and depreciation rates of the Group’s fixed assets are as follows.
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
Housing andStraight-line
20-40 5-10.00 2.25-4.75
1 building depreciation
Machinery Straight-line
5-10 5-10.00 9.00-19.00
2 equipment depreciation
Electronic Straight-line
3-5 5-10.00 18.00-31.67
3 equipment depreciation
Transportation Straight-line
3-5 5-10.00 18.00-31.67
4 vehicle depreciation
Straight-line
Other equipment 5 5-10.00 18.00-19.00
5 depreciation
The estimated useful life, estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.
23. Construction in Progress
On the date when the construction in progress reaches its intended useable state, fixed assets are
carried forward at the estimated value based on the project budget, cost or actual cost of the
project, etc. Depreciation starts from the following month, and the difference in the original value
of fixed assets is adjusted after the completion of the final accounting procedures.
24. Borrowing Costs
For incurred borrowing costs, which can be directly attributed to fixed assets, investment real
estate and inventory that need more than one year of purchasing, construction or production
activities to reach the preset usable or sellable status, shall be capitalized when the asset
expenditure has occurred, the borrowing costs have occurred, and the purchasing, construction or
production activities necessary for the asset to reach the preset usable or sellable status have
begun; When the acquisition, construction or production of assets that meet the capitalization
conditions reach the intended usable or sellable status, capitalization is stopped, and the
borrowing costs incurred thereafter are included in the profits and losses of the current period. If
there is an abnormal interruption in the acquisition, construction or production of assets that meet
the capitalization conditions and the interruption lasts for more than 3 consecutive months, the
capitalization of borrowing costs will be suspended until the acquisition, construction or
production of assets starts again.
The to-be-capitalized amount of interests shall be determined in light of the actual interests
incurred of the specially borrowed loan at the present period minus the income of interests earned
on the unused borrowing loans as a deposit in the bank or as a temporary investment; the
enterprise shall calculate and determine the to-be-capitalized amount on the general borrowing by
multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing
used. The capitalization rate shall be calculated and determined in light of the weighted average
interest rate of the general borrowing.
25. Right-of-Use Assets
The right-of-use assets refer to the right of the Group as the lessee to use the leased assets during the
lease term.
(1) Initial measurement
After the commencement date of the lease term, the Group uses the cost for initial measurement of
181
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
right-of-use assets. The cost includes the following four items: a) The initial measurement amount of
lease liabilities; b) If there is a lease incentive for the lease payment paid on or before the
commencement date of the lease term, the relevant amount of the lease incentive already enjoyed shall
be deducted; c) The initial direct expenses incurred are the incremental costs incurred in reaching the
lease; d) The costs expected to be incurred for dismantling and removing the leased assets, restoring
the site where the leased assets are located or restoring the leased assets to the state agreed in the lease
terms, except those incurred for the production of inventories.
(2) Follow-up measurement
After the commencement date of the lease term, the Group adopts the cost model to carry out
follow-up measurement of the right-of-use assets, that is, the right-of-use assets are measured at cost
less accumulated depreciation and accumulated impairment losses. If the Group re-measures the lease
liabilities according to the relevant provisions of the lease standards, the book value of the right-of-use
assets shall be adjusted accordingly.
Depreciation of right-of-use assets
From the commencement date of the lease term, the Group has accrued depreciation on the
right-of-use assets. Right-of-use assets are usually depreciated from the month when the lease term
begins. The accrued depreciation amount is included in the cost of related assets or current profits and
losses according to the use of the right-of-use assets.
When determining the depreciation method of the right-of-use assets, the Group makes a decision
based on the expected consumption mode of the economic benefits related to the right-of-use assets,
and accrues depreciation for the right-of-use assets on the straight-line method.
When determining the depreciation period of the right-of-use assets, the Group follows the following
principles: If the ownership of the leased assets can be reasonably determined when the lease term
expires, depreciation shall be accrued within the remaining service life of the leased assets; if it cannot
be reasonably determined that the ownership of the leased asset can be obtained when the lease term
expires, depreciation shall be accrued within the shorter of the lease term and the remaining service
life of the leased asset.
Impairment of right-of-use assets
If the right-of-use assets are impaired, the Group carries out subsequent depreciation according to the
book value of the right-of-use assets after deducting the impairment loss.
26. Intangible Assets
The Group’s intangible assets include land use rights, patented technology and non-proprietary
technology, which are measured at actual cost at the time of acquisition. Acquired intangible
assets are stated at actual cost based on the actual price paid and related other expenses. The
actual cost of intangible assets invested by investors is determined at the value agreed in the
investment contract or agreement, but if the agreed value in the contract or agreement is not fair,
the actual cost is determined at fair value. Intangible assets, such as patents, acquired in a merger
not under common control but owned by the acquiree but not recognized in its financial
statements, are recognized as intangible assets at fair value at the time of initial recognition of the
acquiree’s assets.
Land use rights are amortized equally over the years from the commencement date of the grant;
intangible assets such as software and patents are amortized equally over the shortest of the
estimated useful life, the contractual beneficiary life and the effective life prescribed by law. The
amortization amount is charged to the cost of the related assets and current profit or loss
according to their beneficiaries. The estimated useful life and amortization method of intangible
182
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
assets with finite useful lives are reviewed at the end of each year. Accounting estimation
methods are used when changes are required.
The main research and development projects of the Group include the performance improvement
project of Mini & Micro LED.
(1) Specific criteria for dividing the research phase and development phase
“Research” means an original and planned investigation to acquire and understand new scientific
or technical knowledge.
“Development” means the application of research results or other knowledge to one or more plans
or designs to produce new or substantially improved materials, devices, products, or to obtain
new processes, etc., prior to commercial production or use.
Expenses for the research phase are charged to current profit or loss as incurred.
(2) Specific criteria for capitalization of development stage expenditures
Expenditures in the development stage are capitalized when the following conditions are met.
① It is feasible technically to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally;
④ It is able to finish the development of the intangible assets, and able to use or sell the
intangible assets, with the support of sufficient technologies, financial resources and other
resources;
⑤ The development expenditures of the intangible assets can be reliably measured.
27. Impairment of Long-term Assets
For non-current financial Assets of fixed Assets, projects under construction, intangible Assets
with limited service life, investing real estate with cost model, long-term equity investment of
subsidiaries, cooperative enterprises and joint ventures, the Group should judge whether decrease
in value exists on the date of balance sheet. Recoverable amounts should be tested for decrease in
value if it exists. Other intangible Assets of reputation and uncertain service life and other
non-accessible intangible assets should be tested for decrease in value no matter whether it exists.
If the recoverable amount is less than carrying value in impairment test results, the provision for
impairment of differences should include in impairment loss. Recoverable amounts would be the
higher of net value of asset fair value deducting disposal charges or present value of predicted
cash flow. Asset fair value should be determined according to negotiated sales price of fair trade.
If no sales agreement exists but with asset active market, fair value should be determined
according to the Buyer’s price of the asset. If no sales agreement or asset active market exists,
asset fair value could be acquired on the basis of best information available. Disposal expenses
include legal fees, taxes, cartage or other direct expenses of merchantable Assets related to asset
disposal. Present value of predicted asset cash flow should be determined by the proper discount
rate according to Assets in service and predicted cash flow of final disposal. Asset depreciation
reserves should be calculated on the basis of single Assets. If it is difficult to predict the
recoverable amounts for single Assets, recoverable amounts should be determined according to
the belonging asset group. Asset group is the minimum asset combination producing cash flow
independently.
In impairment test, carrying value of the business reputation in financial report should be shared
to beneficial asset group and asset group combination in collaboration of business merger. It is
shown in the test that if recoverable amounts of shared business reputation asset group or asset
group combination are lower than book value, it should determine the impairment loss.
Impairment loss amount should firstly be deducted and shared to the carrying value of business
reputation of asset group or asset group combination, then deduct carrying value of all assets
according to proportions of other carrying value of above assets in asset group or asset group
183
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
combination except business reputation.
After the asset impairment loss is determined, recoverable value amounts would not be returned
in future.
28. Long-term Deferred Expenses
The Long-term deferred expenses of the Group including renovation cost, mold cost and so on
shall be amortized evenly during the benefit period. If these long-term deferred expenses cannot
benefit the future accounting period, the amortized value of this item that has not been amortized
shall be transferred to the current profit and loss.
29. Contract Liabilities
Liabilities of contracts refer to the Group's obligation to transfer goods to customers due to the
consideration received or receivable from customers. Before the transfers, if the customer has
paid the consideration or if the Group has obtained the right to unconditionally collect the
contract consideration, the liabilities of contracts shall be recognized based on the amount
received or receivable at the earlier point between the actual payment by the customer and the
payment due.
30. Employee Compensation
Salaries of staff of the Group include short-term salary, post-employment benefits, termination
compensation, and other long-term benefits.
Short-term salary mainly includes wages, bonuses, allowances and subsidies, as well as employee
benefits, medical insurance, maternity insurance, employment injury insurance, housing provident
fund, labor union expenses, and staff education expenses, and non-monetary benefits. During the
accounting period when the employees provide services, the actual short-term compensation is
recognised as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.
The post-employment benefits mainly include the basic endowment insurance, etc. They are
divided into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Group. According to the defined contribution plan, the deposit paid
to a separate entity in exchange for the services provided by the employees during the accounting
period on the balance sheet date is recognized as liabilities, and shall be included in the current
profit and loss or the cost of related assets according to the beneficiary. If the Group has a defined
benefit plan, the specific accounting method should be explained.
When terminating labour relations before expiration of contract, or layoffs with compensations,
and the Group cannot terminate the labour relations unilaterally or reduce the demission welfare,
remuneration and liabilities produced from the demission welfare should be determined and
included in current profits and losses when determining the costs of demission welfare and
recombination. However, demission welfare not fully paid within 12 months after annual
Reporting Period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above
dismiss ion welfare. The Group would recorded the salary and the social security insurance fees
paid and so on from the employee’s service termination date to normal retirement date into
current profits and losses (dismission welfare) under the condition that they meet the recognition
conditions of estimated liabilities.
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan,
should be accounting disposed according to the setting drawing plan, while the rest should be disposed
according to the setting revenue plan.
31. Lease Liabilities
(1) Initial measurement
184
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
The Group initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term.
1) Lease payments
Lease payments refer to the amount paid by the Group to the lessor related to the right to use the
leased assets during the lease term, including: a) Fixed payment amount and substantial fixed payment
amount. If there is lease incentive, deduct the amount related to lease incentive; b) The variable lease
payment amount depending on the index or ratio, which is determined according to the index or ratio
on the commencement date of the lease term at the initial measurement; c) When the Group
reasonably determines the exercise price of the purchase option when it will exercise it; d) The lease
term reflects the amount to be paid to exercise the termination option when the Group will exercise the
termination option; e) The amount expected to be paid based on the residual value of the guarantee
provided by the Group.
2) Rate of discount
When calculating the present value of the lease payments, the Group uses the interest rate implicit in
lease as the rate of discount, which is the interest rate at which the sum of the present value of the
lessor's lease receipts and the present value of the unsecured residual value equals the sum of the fair
value of the leased asset and the lessor's initial direct expenses. If the Group fails to determine the
interest rate implicit in lease, the incremental interest rate on borrowing will be used as the rate of
discount. The incremental interest rate on borrowing shall mean the interest rate payable by the Group
to borrow funds under similar mortgage conditions during similar periods to acquire assets close to the
value of the right-of-use assets under similar economic circumstances. The interest rate is related to
the following matters: a) The Group's own situation, that is, the Company's solvency and credit status;
b) The term of "loan", that is, the lease term; c) The amount of "borrowed" funds, that is, the amount
of lease liabilities; d) "Mortgage conditions", that is, the nature and quality of the underlying assets; e)
Economic environment, including the jurisdiction where the lessee is located, the valuation currency,
the time when the contract is signed, etc. The incremental borrowing rate is based on the Group's latest
asset-based lending interest rate for similar assets and adjusted to take into account the above factors.
(2) Follow-up measurement
After the commencement date of the lease term, the Group carries out follow-up measurement of lease
liabilities according to the following principles: a) When recognizing the interest of lease liabilities,
the Group will increase the carrying amount of lease liabilities; b) When paying the lease payments,
the Group will reduce the book amount of the lease liability; c) When the lease payments changes due
to revaluation or lease change, the Group will remeasure the book value of lease liability.
The Group calculates the interest expenses of the lease obligations during each period of the lease
term at a fixed periodic interest rate, and includes them (except those that shall be capitalized) in profit
or loss for the current period. Periodic rate refers to the rate of discount adopted by the Group when
initially measuring lease liabilities, or the revised rate of discount adopted by the Group when lease
liabilities need to be remeasured according to the revised rate of discount due to changes in lease
payments or lease changes.
(3) Re-measurement
After the commencement date of the lease term, the Group re-measures the lease liability based on the
present value of the changed lease payment and adjusts the book value of the right-of-use assets
accordingly when the following circumstances occur. If the carrying value of the right-of-use assets
has been reduced to zero, but the lease obligations still need to be further reduced, the Group will
185
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
include the remaining amount in profit or loss for the current period. a) The actual fixed payment
amount changes (in this case, the original rate of discount is used for discount); b) The estimated
amount payable of the residual value changes (in this case, the original rate of discount is used for
discount); c) The index or ratio used to determine the lease payment changes (in this case, the revised
rate of discount is used for discount); d) The evaluation result of the purchase option changes (in this
case, the revised rate of discount is adopted for discount); e) The evaluation result or actual exercise of
the lease renewal option or the lease termination option changes (in this case, the revised rate of
discount is adopted for discount).
32. Provisions
The Group should recognize the related obligation as a provision for liability when the obligation
meets the following conditions: (1) That obligation is a present obligation of the enterprise; (2) It
is probable that an outflow of economic benefits from the enterprise will be required to settle the
obligation; (3) A reliable estimate can be made of the amount of the obligation.
On the balance sheet date, an enterprise shall take into full consideration of the risks, uncertainty,
time value of money, and other factors pertinent to the Contingencies to measure the provisions in
accordance with the best estimate of the necessary expenses for the performance of the current
obligation.
When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides, the
amount recognized for the reimbursement should not exceed the carrying value of the estimated
liabilities.
33. Principles of Revenue Recognition and Measurement Method
The revenue of the Group mainly consists of the income from main business and the income from
other businesses.
(1)Revenue recognition principle
The Group has fulfilled the performance obligations in the contract, that is, when the customer
obtains control of the relevant goods or services, revenue is recognized. Obtaining control over
related goods or services means being able to lead the use of the goods or the provision of such
services and obtain almost all of the economic benefits from it.
On the starting date of the contract, the Group evaluates the contract, identifies each individual
performance obligation contained in the contract, and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time.
When one of the following conditions is met, it is a performance obligation within a certain
period of time, otherwise, it is a performance obligation at a certain point in time:
①The customer obtains and consumes the economic benefits brought by the Group's performance
at the same time the Group performs the contract.
②The customer can control the products under construction during the performance of the
Group.
③The goods produced during the performance of the Group have irreplaceable uses, and the
Group has the right to collect payments for the cumulative performance of the contract during the
entire contract period.
For performance obligations performed within a certain period of time, the Group recognizes
revenue according to the performance progress during that period. When the performance
progress cannot be reasonably determined, if the cost incurred by the Group is expected to be
compensated, the revenue shall be recognized according to the amount of the cost incurred until
the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Group recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When judging
whether a customer has obtained control of goods or services, the Group considers the following
signs:
186
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
①The Group enjoys the current right to receive payment for the goods or services.
②The Group has transferred the legal ownership of the product to the customer.
③The Group has transferred the goods in kind to the customer.
④The Group has transferred the main risks and rewards of the ownership of the product to the
customer.
⑤The customer has accepted the goods or services.
The Group has transferred goods or services to customers and the right to receive consideration is
listed as contract assets, and contract assets are devalued on the basis of expected credit losses.
The Group's unconditional right to collect consideration from customers is listed as receivables.
The Group’s obligation to transfer goods or services to customers due to the consideration
received from customers is listed as contract liabilities.
(2) Principles of income measurement
① If the contract contains two or more performance obligations, at the beginning of the contract,
the Group will allocate the transaction price to each individual performance obligation based on
the relative proportion of the stand-alone selling price of the goods or services promised by each
individual performance obligation. Revenue is measured at the transaction price of each
individual performance obligation.
②The transaction price is the amount of consideration that the Group expects to be entitled to
receive due to the transfer of goods or services to customers, excluding payments collected on
behalf of third parties and payments expected to be returned to customers. The transaction price
confirmed by the Group does not exceed the amount at which the accumulated confirmed income
will most likely not undergo a significant reversal when the relevant uncertainty is eliminated. It
is expected that the money returned to the customer will not be included in the transaction price
as a liability.
③If there is variable consideration in the contract, such as cash discounts and price guarantees in
part of the contract between the Group and its customers, the Group determines the best estimate
of the variable consideration according to the expected value or the most likely amount, but
includes the variable The transaction price of the consideration shall not exceed the amount at
which the accumulated confirmed income is unlikely to be reversed significantly when the
relevant uncertainty is eliminated.
④For the consideration payable to customers, the Group offsets the transaction price from the
consideration payable to customers, and offsets the current income at the time when the relevant
income is recognized and the payment (or promised to pay) the customer consideration is later,
unless the consideration payable is for Obtain other clearly distinguishable products from
customers.
⑤For sales with a sales return clause, when the customer obtains control of the relevant product,
the Group recognizes revenue based on the amount of consideration expected to be received due
to the transfer of the product to the customer, and the expected return due to the sales return is
recognized as an estimated liability ; At the same time, according to the expected book value of
the returned goods at the time of transfer, the balance after deducting the estimated cost of
recovering the goods (including the value impairment of the returned goods) is recognized as an
asset, that is, the return cost receivable, according to the transferred goods The book value at the
time of the transfer, deducting the net carry-over cost of the aforementioned asset cost. On each
balance sheet date, the Group re-estimates the future sales returns and re-measures the
aforementioned assets and liabilities.
⑥ If there is a significant financing component in the contract, the Group shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
goods or services. Using the discount rate that discounts the nominal amount of the contract
consideration into the current commodity price, the difference between the determined transaction
price and the amount of the consideration promised in the contract is amortized by the actual
interest method during the contract period. On the starting date of the contract, the Group expects
that the time between the customer's acquisition of control of the goods or services and the
187
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
customer's payment of the price will not exceed one year, regardless of the significant financing
components in the contract.
⑦According to contractual agreements, legal provisions, etc., the Group provides quality
assurance for the products sold and the assets built. For guarantee-type quality assurance to assure
customers that the goods sold meet the established standards, the Group conducts accounting
treatment in accordance with "contingent events-estimated liabilities". For the service quality
assurance that provides a separate service in order to assure customers that the goods sold meet
the established standards, the Group regards it as a single performance obligation, based on the
stand-alone selling price of the quality assurance of goods and services. In a relative proportion,
part of the transaction price is allocated to service quality assurance, and revenue is recognized
when the customer obtains control of the service. When assessing whether the quality assurance
provides a separate service in addition to ensuring that the products sold meet the established
standards, the Group considers whether the quality assurance is a legal requirement, the quality
assurance period, and the nature of the Group's commitment to perform the tasks.
⑧ When the construction contract between the Group and the customer is changed: ①If the
contract change adds clearly distinguishable construction services and contract prices, and the
new contract price reflects the stand-alone selling price of the new construction services, the
Group will The contract change shall be treated as a separate contract for accounting treatment;
②If the contract change does not fall into the above-mentioned circumstance ①, and there is a
clear distinction between the construction services that have been transferred and the construction
services that have not been transferred on the date of the contract change, the Group Treat it as
the termination of the original contract, and at the same time, merge the unfulfilled part of the
original contract and the changed part of the contract into a new contract for accounting treatment;
③If the contract change does not fall into the above situation ①, and the construction service has
been transferred on the date of contract change There is no clear distinction between the
construction service and the untransferred construction service. The Group accounts for the
changed part of the contract as a component of the original contract. The resulting impact on the
recognized revenue will be adjusted on the date of contract change.
(3) Specific methods of revenue recognition
① Revenue recognized on time
The Group's sales of household appliances, electronic components, etc., belong to the
performance obligation performed at a certain point in time.
Recognition conditions for income from domestic sales of goods and overseas direct sales of
goods: The Group has delivered the product to the customer in accordance with the contract and
the customer has received the product, the payment has been recovered or the receipt of payment
has been obtained, and the relevant economic benefits are likely to flow in. The main risks and
rewards have been transferred, and the legal ownership of the goods has been transferred.
Conditions for confirming the income of exported goods: The Group has declared the products
for export according to the contract, obtained the bill of lading, and delivered the goods to the
carrier entrusted by the purchaser. The payment has been recovered or the receipt of payment has
been obtained and relevant economic benefits are likely to flow in. The main risks and rewards of
commodity ownership have been transferred, and the legal ownership of commodities has been
transferred.
②Income confirmed according to the performance progress
The Group's business contracts with customers for project construction, online advertising,
operating leases, etc. are performance obligations performed within a certain period of time, and
revenue is recognized according to the progress of the performance.
34. Government Grants
The government grants of the Group are divided into asset-based grants related to and
income-based grants. Asset-based grants refer to the government grants for long-term assets
obtained by the purchase, construction, and other ways. Income-based grants refer to other grants.
188
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
If the beneficiaries are not specified in government documents, the Group will make the
distinction according to the aforesaid principle. Beneficiaries which are difficult to categorize
shall be classified as an income-based government grant as a whole.
Current elements of government grants shall be measured based on the amount actually received.
Those shall be measured according to the amount receivable are grants paid according to a fixed
quota standard, or funds that meet the relevant conditions stipulated by the financial support
policy with conclusive evidence at the end of the year and which are expected as the financial
support. Non-monetary elements of the government grants shall be measured at fair value. Those
whose fair value cannot be obtained reliably shall be measured at its nominal amount (RMB1).
Asset-based grants shall be used to offset the carrying value of related assets or presented as
deferred income, and shall, over the life of the related asset, be included in the current profits and
losses by the equal amortization method.
If the related asset is sold, transferred, scrapped, or damaged before the end of its useful life, its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.
Income-based grants that are used to compensate related costs or losses in subsequent periods
shall be deemed as deferred income and shall be included in the current profits and losses during
the period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.
Government grants not related to routine activities shall be included in non-operating income and
expenditure.
The Group obtains interest grants on policy-related concessional loans in two different ways: the
interest subsidy funds are allocated by the government either to the lending bank or directly to the
Group. The respective accounting treatment is carried out as follows:
(1) Where the government allocates the funds to the lending bank, and the bank provides a loan to
the Group at a policy-related preferential interest rate, the actual amount of the loan received is
taken as the entry value, and the borrowing costs are calculated based on the loan principal and
the policy-related preferential interest rate.
(2) Where the government allocates the funds directly to the Group, the grants are offset against
borrowing costs.
Where the government grants that the Group has recognized in accounting need to be returned,
the accounting treatment in the current period is carried out as follows:
1) If the book value of an asset is offset on initial recognition, the book value will be adjusted;
2) If there is deferred income, the book balance of the deferred income will be offset, and the
excess will be included in profit or loss in the current period;
3) Under any other circumstances, the grants will be included in profit or loss in the current
period.
35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized based on
the difference (temporary difference) between the tax base and book value of the assets and
liabilities. In the case of deductible losses that can be deducted from taxable income in
subsequent years in accordance with the provisions of the tax laws, the corresponding deferred
income tax assets are recognized. In the case of temporary differences arising from the initial
recognition of goodwill, the corresponding deferred income tax liabilities are not recognized.
With respect to temporary differences arising from the initial recognition of an asset or liability in
a transaction which isn’t a business combination and which affects neither accounting profit nor
taxable income (or deductible losses), the corresponding deferred income tax assets and deferred
income tax liabilities are not recognized. On the balance sheet date, the deferred income tax assets
and deferred income tax liabilities are measured at the tax rate applicable to the period during
which the assets are expected to be recovered or the liabilities are expected to be settled.
189
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
The Group recognizes deferred income tax assets to the extent of the taxable income which it is
most likely to obtain and which can be deducted from deductible temporary differences,
deductible losses and tax credits.
36. Leasing
(1) Identification of leases
The term "lease" refers to a contract whereby the lessor transfers the right of use regarding the leased
asset(s) to the lessee within a specified time in exchange for consideration. On the commencement
date of the contract, the Group assesses whether the contract is a lease or contains a lease. If a party to
the contract transfers the right allowing the control over the use of one or more assets that have been
identified within a certain period, in exchange for a consideration, such contract is a lease or includes
a lease. In order to determine whether a party to the contract transfers the right allowing the control
over the use of the identified assets for a certain period of time, the Group assesses whether the
customers in the contract are entitled to obtain almost all the economic benefits arising from the use of
the identified assets during the use period, and have the right to dominate the use of the identified
assets during the use period.
If a contract contains multiple single leases at the same time, the Group will split the contract, and
conduct accounting treatment of each single lease respectively. If a contract contains both lease and
non-lease parts at the same time, the Group will split the lease and non-lease parts for accounting
treatment.
(2) The Group as lessee
1) Lease recognition
On the commencement date of the lease term, the Group recognizes the right-of-use assets and lease
obligations in respect of the lease. For the recognition and measurement of right-of-use assets and
lease liabilities, please refer to Note IV "25. Right-of-use assets" and "31. Lease liabilities".
2) Lease change
A lease change refers to a change in the scope, consideration, and term of lease outside the original
contract clauses, including the addition or termination of the one or several rights to use lease assets,
and the extension or reduction of the lease term specified in the contract. The effective date of lease
change refers to the date when both parties reach an agreement on lease change.
If the lease changes and the following conditions are met at the same time, the Group will account for
the lease change as a separate lease: a) The lease change expands the lease scope or extends the lease
term by increasing the right to use one or more leased assets; b) The increased consideration is
equivalent to the separate price of the expanded lease scope or the extended lease term adjusted
according to the contract conditions.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change,
the Group will allocate the consideration of the changed contract in accordance with the relevant
provisions of the lease standards and re-determine the changed lease term. The revised rate of discount
is used to discount the changed lease payments to remeasure the lease liability. When calculating the
present value of the changed lease payments, the Group uses the interest rate implicit in lease as the
rate of discount. If the interest rate implicit in lease cannot be determined, the Group adopts the
incremental borrowing rate of the lessee on the effective date of the lease change as the rate of
discount. With regard to the impact of the above-mentioned lease liability adjustment, the Group
conducts accounting treatment according to the following situations: a) The lessee will
190
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
correspondingly reduce the book value of the right-of-use assets and include the profit or loss of the
lease terminated in part or whole in the current profit or loss, if the lease change narrows the scope of
lease or shortens the lease term. b) The lessee will correspondingly adjust the book value of the
right-of-use assets, if other lease changes result in the re-measurement of the lease obligation.
3) Short-term and low-value asset leases
For short-term leases with a lease term not exceeding 12 months and low-value asset leases with lower
value when single leased assets are brand new assets, the Group chooses not to recognize right-of-use
assets and lease liabilities. The Group includes the payments of short-term and low-value asset leases
incurred during each period of the lease term in the profit or loss for the current period or the cost of
relevant assets by the straight-line method.
(3) The Group as lessor
On the basis that (1) the contract assessed is a lease or includes a lease, the Group, as the lessor,
classifies leases into finance leases and operating leases on the lease commencement date.
If a lease substantially transfers virtually all risks and rewards associated with ownership of the leased
asset, the lessor classifies the lease as a finance lease and leases other than finance leases as operating
leases.
The Group usually classifies a lease that falls under any one or more of the following circumstances as
a finance lease: a) When the lease term expires, the ownership of the leased asset is transferred to the
lessee; b) The lessee has the option to purchase the leased asset(s). As the agreed purchase price is low
enough compared with the fair value of the leased asset(s) at the time the option is expected to be
exercised, it can be reasonably determined at the inception of the lease that the lessee will exercise the
option; c) Although the ownership of the assets is not transferred, the lease term accounts for most of
the service life of the leased assets; d) On the lease commencement date, the present value of lease
receipts is almost equivalent to the fair value of leased assets; e) The leased assets are special in nature,
and only the lessee can use them without major renovation. The Group may also classify a lease that
falls under any one or more of the following circumstances as a finance lease: a) If the lessee cancels
the lease, losses to the lessor caused by the cancellation will be borne by the lessee; b) The gains or
losses arising from the fluctuation of the fair value of the residual value of assets belong to the lessee;
c) The lessee has the ability to continue leasing until the next term at a rent far below the market level.
1) Accounting treatment of finance leases
Initial measurement
On the commencement date of the lease term, the Group recognizes the finance lease receivables for
the finance lease and derecognizes the leased asset of the finance lease. It recognizes the net
investment in the lease as the entry value of the finance lease, when initially measuring the finance
lease receivable.
The net investment in the lease is the sum of the net value of the unguaranteed residual value and the
lease receivable not received on the commencement date of the lease term at the interest rate implicit
in lease. Lease collection amount refers to the amount that the lessor should collect from the lessee for
transferring the right to use the leased assets during the lease term, including: a) Fixed payment
amount and substantial fixed payment amount that the lessee needs to pay. If there is lease incentive,
deduct the amount related to lease incentive; b) The variable lease payment depending on the index or
ratio, which is determined according to the index or ratio on the commencement date of the lease term
at the initial measurement; c) The exercise price of the purchase option, provided that it is reasonably
191
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
determined that the lessee will exercise the option; d) The amount to be paid by the lessee to exercise
the option to terminate the lease, provided that the lease term reflects that the lessee will exercise the
option to terminate the lease; e) The residual value of guarantee provided to the lessor by the lessee,
the party related to the lessee and an independent third party that has the financial ability to fulfill the
guarantee obligation.
Follow-up measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each period in the
lease term. Periodic rate refers to the rate of discount implicit in lease adopted to determine the net
investment in the lease (in the case of sublease, if the interest rate implicit in lease of sublease cannot
be determined, the rate of discount implicit in original lease is adopted (adjusted according to the
initial direct expenses related to sublease)), or the revised rate of discount determined in accordance
with the relevant provisions where the change of the finance lease is not accounted for as a separate
lease and meets the condition that the lease will be classified as a finance lease if the change became
effective on the lease commencement date.
Accounting treatment of lease change
If the lease changes and the following conditions are met at the same time, the Group will account for
the lease change as a separate lease: a) The lease change expands the lease scope by increasing the
right to use one or more leased assets; b) The increased consideration is equivalent to the separate
price of the expanded lease scope adjusted according to the contract conditions.
If the change of finance lease is not accounted for as a separate lease, and the condition that the lease
will be classified as an operating lease if the change takes effect on the lease commencement date is
met, the Group will account for it as a new lease from the effective date of the lease change, and take
the net lease investment before the effective date of the lease change as the book value of the leased
asset.
2) Accounting treatment of operating leases
Treatment of rent
The Group recognizes lease receipts from operating leases as rental income on a straight-line basis
during each period of the lease term.
Incentives provided
If the Group provides a rent-free period, it allocates the total rentals over the entire lease term without
deducting the rent-free period by the straight-line method, and also recognizes rental income during
the rent-free period. If certain expenses of the lessee are borne, the Group allocates the balance of
rental income over the lease term after such expenses are deducted from the gross rental income.
Initial direct cost
Initial direct expenses incurred by the Group in connection with operating leases shall be capitalized
to the cost of the leased underlying asset and recorded in the profits and losses of the current period in
stages over the lease term on the same basis of recognition as rental income.
Depreciation
For the fixed assets in the assets under operating lease, the Group adopts the depreciation policy of
similar assets to calculate and distill depreciation. For other assets under operating lease, the Group
amortizes them in a systematic and reasonable manner.
Variable lease payments
192
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Variable lease payments made by the Group in relation to operating leases that are not included in the
lease receivable are included in the current profit or loss when they are actually incurred.
Change of operating leases
If an operating lease changes, the Group will regard it as a new lease for accounting treatment from
the effective date of the change. The advance receipt or the lease receivable related to the lease prior to
the change is recognized as the payment receivable of the new lease.
37. Changes in Main Accounting Policies and Estimates
(1) Changes of accounting policies
On 7 December 2018, the Ministry of Finance issued the Accounting Standard for Business
Enterprises No. 21 -- Leasing (Revised in 2018) (C.K. [2018] No.35) (hereinafter referred to as the
"new lease standards"). The Group has implemented the aforesaid new lease standards since 1 January
2021, and made changes to relevant accounting policies in accordance with the provisions of the new
lease standards.
According to the provisions of the new lease standards, for a contract already existing prior to the date
of initial adoption, the Group decides not to reassess whether it is a lease or includes any lease.
The Group decides to adjust the cumulative impact only for those leases outstanding as of 1 January
2021. The amount of retained earnings and other relevant items in the financial statements at the
beginning of the first year of adoption (i.e., 1 January 2021) is adjusted in accordance with the
cumulative impact of the first adoption of the standards, and the comparable period information is not
adjusted.
On the date of initial adoption of the new lease standards (that is, 1 January 2021), the specific
treatment of the Group and its impact are as follows:
A. The Group as lessee
For the finance lease on the date of initial adoption, the Group, as the lessee, measures the right-of-use
assets and lease liabilities respectively according to the original book value of the finance lease assets
and the finance lease payable. For the operating lease on the date of initial adoption, the lease
liabilities are measured as the present value discounted by the lessee according to the remaining lease
payment amount at the incremental borrowing rate on the date of initial adoption. The unpaid rent
payable accrued according to the accrual basis under the original lease standards is included in the
remaining lease payments.
For operational leasing prior to the date of initial adoption, the Group will measure the lease liabilities
according to the present value discounted at the incremental borrowing rate on the date of initial
adoption based on the remaining lease payments, and make necessary adjustments to the right-of-use
assets at an amount equal to the lease liabilities.
For operating leases in which the asset leased prior to the date of initial adoption is a low-value asset,
the Group does not recognize the right-of-use assets or lease liabilities. For operating leases other than
low-value leases on the date of initial adoption, the Group adopts one or more of the following
simplified treatments for each lease:
Leases to be completed within 12 months after the date of initial adoption are treated as short-term
leases;
Leases with similar characteristics when measuring lease liabilities are treated with the same rate of
discount;
The measurement of the right-of-use assets does not include the initial direct expenses;
193
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
If there is an option to renew or an option to terminate the lease, the Group determines the lease term
based on the actual exercise of the option prior to the date of initial adoption and other latest
circumstances.
As an alternative to impairment tests for right-of-use assets, the Group, according to the Accounting
Standards for Business Enterprises No.13-Contingencies, assesses whether the contract containing the
lease is an onerous contract prior to the date of initial adoption and adjusts the right-of-use asset based
on the amount of the loss provision recorded in the balance sheet prior to the date of initial adoption.
If there are changes in leases prior to the date of initial adoption, the Group conducts accounting
treatment in accordance with the final arrangements for lease changes.
B. The Group as lessor
For subleases classified as operating leases prior to the date of initial adoption and still in existence
after the date of initial adoption, the Group, as the lessor, reassesses the remaining contractual terms
and conditions of the original lease and sublease at the date of initial adoption. If the sublease is
reclassified as a finance lease, the Group conducts accounting treatment for it as a new finance lease.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any
New Standards Governing Leases since 2021
1）Consolidated balance sheet:
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 5,431,530,180.90 5,431,530,180.90
Settlement reserve
Interbank loans granted
Held-for-trading
618,249,541.66 618,249,541.66
financial assets
Derivative financial
assets
Notes receivable 2,358,180,193.96 2,358,180,193.96
Accounts receivable 3,900,897,623.59 3,900,897,623.59
Accounts receivable
84,057,197.44 84,057,197.44
financing
Prepayments 1,183,270,543.41 1,182,471,715.24 -798,828.17
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 2,145,736,640.60 2,145,209,803.70 -526,836.90
Including: Interest
45,109,425.85 45,109,425.85
receivable
Dividends 4,947,848.62 4,947,848.62
194
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item 31 December 2020 1 January 2021 Adjustment
receivable
Financial assets
purchased under resale
agreements
Inventories 4,521,300,677.41 4,521,300,677.41
Contract assets 2,870,006,710.39 2,870,006,710.39
Assets held for sale
Current portion of
112,310,158.82 112,310,158.82
non-current assets
Other current assets 1,913,146,483.39 1,913,146,483.39
Total current assets 25,138,685,951.57 25,137,360,286.50 -1,325,665.07
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Investments in other
debt obligations
Long-term receivables 399,497,204.03 399,497,204.03
Long-term equity
4,375,833,584.65 4,375,833,584.65
investments
Investments in other
25,343,293.16 25,343,293.16
equity instruments
Other non-current
1,878,154,796.76 1,878,154,796.76
financial assets
Investment property 538,585,668.29 538,585,668.29
Fixed assets 3,178,642,017.84 3,178,642,017.84
Construction in progress 9,236,643,931.68 9,236,643,931.68
Productive living assets
Oil and gas assets
Right-of-use assets 104,222,631.14 104,222,631.14
Intangible assets 1,189,191,001.51 1,189,191,001.51
Development costs
Goodwill 675,795,873.17 675,795,873.17
Long-term prepaid
153,198,562.82 153,198,562.82
expense
Deferred income tax
1,265,916,437.39 1,265,916,437.39
assets
Other non-current assets 1,820,779,170.74 1,820,779,170.74
Total non-current assets 24,737,581,542.04 24,841,804,173.18 104,222,631.14
Total assets 49,876,267,493.61 49,979,164,459.68 102,896,966.07
195
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item 31 December 2020 1 January 2021 Adjustment
Current liabilities:
Short-term borrowings 10,990,550,475.78 10,990,550,475.78
Borrowings from the
central bank
Interbank loans obtained
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 1,335,987,026.21 1,335,987,026.21
Accounts payable 9,632,366,325.76 9,632,366,325.76
Advances from
customers
Contract liabilities 1,217,367,735.94 1,217,367,735.94
Financial assets sold
under repurchase
agreements
Customer deposits and
interbank deposits
Payables for acting
trading of securities
Payables for
underwriting of securities
Employee benefits
476,616,244.45 476,616,244.45
payable
Taxes payable 508,214,059.16 508,214,059.16
Other payables 1,999,430,899.69 1,991,555,887.10 -7,875,012.59
Including: Interest
220,837,380.17 220,837,380.17
payable
Dividends
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Current portion of
376,896,566.29 425,389,853.10 48,493,286.81
non-current liabilities
Other current liabilities 441,774,317.23 441,774,317.23
Total current liabilities 26,979,203,650.51 27,019,821,924.73 40,618,274.22
Non-current liabilities:
Insurance contract
reserve
196
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item 31 December 2020 1 January 2021 Adjustment
Long-term borrowings 5,964,748,997.54 5,964,748,997.54
Bonds payable 4,993,212,788.32 4,993,212,788.32
Including: Preferred
shares
Perpetual
bonds
Lease liabilities 62,278,691.85 62,278,691.85
Long-term payables 481,409,849.96 481,409,849.96
Long-term employee
5,248,309.14 5,248,309.14
benefits payable
Provisions 102,353,567.91 102,353,567.91
Deferred income 446,900,524.64 446,900,524.64
Deferred income tax
75,819,231.93 75,819,231.93
liabilities
Other non-current
106,475,449.02 106,475,449.02
liabilities
Total non-current
12,176,168,718.46 12,238,447,410.31 62,278,691.85
liabilities
Total liabilities 39,155,372,368.97 39,258,269,335.04 102,896,966.07
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 230,185,310.09 230,185,310.09
Less: Treasury stock
Other comprehensive
-16,583,042.42 -16,583,042.42
income
Specific reserve
Surplus reserves 1,211,721,109.67 1,211,721,109.67
General reserve
Retained earnings 4,595,371,391.63 4,595,371,391.63
Total equity attributable to
shareholders of the 8,428,640,176.97 8,428,640,176.97
Company as the parent
Non-controlling interests 2,292,254,947.67 2,292,254,947.67
Total shareholders’ equity 10,720,895,124.64 10,720,895,124.64
Total liabilities and
49,876,267,493.61 49,979,164,459.68 102,896,966.07
shareholders’ equity
Explanation of adjustment of consolidated balance sheet: Due to the implementation of the new
lease standards, the Group has adjusted the prepayments of -RMB798,828.17, other receivables
of -RMB526,836.90, right-of-use assets of RMB104,222,631.14, other payables of
197
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
-RMB7,875,012.59, non-current liabilities due within one year of RMB48,493,286.81 and lease
liabilities of RMB62,278,691.85 in its consolidated financial statements on 1 January 2021.
2) Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 3,481,445,560.17 3,481,445,560.17
Held-for-trading
298,497,458.33 298,497,458.33
financial assets
Derivative financial
assets
Notes receivable 879,589,355.91 879,589,355.91
Accounts receivable 4,473,251,691.85 4,473,251,691.85
Accounts receivable
5,659,400.00 5,659,400.00
financing
Prepayments 1,021,218,285.46 1,021,218,285.46
Other receivables 10,034,869,353.07 10,034,869,353.07
Including: Interest
41,138,869.97 41,138,869.97
receivable
Dividends
749,431,635.50 749,431,635.50
receivable
Inventories 202,406,456.36 202,406,456.36
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 1,020,031,186.39 1,020,031,186.39
Total current assets 21,416,968,747.54 21,416,968,747.54
Non-current assets:
Investments in debt
obligations
Investments in other
debt obligations
Long-term receivables
Long-term equity
8,806,166,599.56 8,806,166,599.56
investments
Investments in other
17,940,215.36 17,940,215.36
equity instruments
Other non-current
250,230,000.00 250,230,000.00
financial assets
Investment property 406,237,236.91 406,237,236.91
Fixed assets 431,762,044.14 431,762,044.14
198
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item 31 December 2020 1 January 2021 Adjustment
Construction in progress 132,464,938.18 132,464,938.18
Productive living assets
Oil and gas assets
Right-of-use assets 6,705,627.02 6,705,627.02
Intangible assets 59,506,272.63 59,506,272.63
Development costs
Goodwill
Long-term prepaid
16,532,521.69 16,532,521.69
expense
Deferred income tax
980,095,292.53 980,095,292.53
assets
Other non-current assets 10,867,888.84 10,867,888.84
Total non-current assets 11,111,803,009.84 11,118,508,636.86 6,705,627.02
Total assets 32,528,771,757.38 32,535,477,384.40 6,705,627.02
Current liabilities:
Short-term borrowings 5,052,990,048.93 5,052,990,048.93
Held-for-trading
financial liabilities
Derivative financial
liabilities
Notes payable 1,344,958,738.50 1,344,958,738.50
Accounts payable 6,811,467,585.39 6,811,467,585.39
Advances from
customers
Contract liabilities 723,022,740.95 723,022,740.95
Employee benefits
147,391,317.06 147,391,317.06
payable
Taxes payable 4,094,133.23 4,094,133.23
Other payables 4,275,347,622.57 4,275,347,622.57
Including: Interest
215,828,625.04 215,828,625.04
payable
Dividends
payable
Liabilities directly
associated with assets held
for sale
Current portion of
5,867,425.49 8,347,347.05 2,479,921.56
non-current liabilities
Other current liabilities 6,108,675.36 6,108,675.36
Total current liabilities 18,371,248,287.48 18,373,728,209.04 2,479,921.56
Non-current liabilities:
199
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item 31 December 2020 1 January 2021 Adjustment
Long-term borrowings 2,930,034,612.32 2,930,034,612.32
Bonds payable 4,993,212,788.32 4,993,212,788.32
Including: Preferred
shares
Perpetual
bonds
Lease liabilities 4,225,705.46 4,225,705.46
Long-term payables 17,633,249.67 17,633,249.67
Long-term employee
benefits payable
Provisions 832,465.72 832,465.72
Deferred income 61,530,557.55 61,530,557.55
Deferred income tax
2,334,364.58 2,334,364.58
liabilities
Other non-current
54,162,098.05 54,162,098.05
liabilities
Total non-current
8,059,740,136.21 8,063,965,841.67 4,225,705.46
liabilities
Total liabilities 26,430,988,423.69 26,437,694,050.71 6,705,627.02
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 112,570,352.72 112,570,352.72
Less: Treasury stock
Other comprehensive
-2,682,217.31 -2,682,217.31
income
Specific reserve
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 2,352,385,005.09 2,352,385,005.09
Total shareholders’ equity 6,097,783,333.69 6,097,783,333.69
Total liabilities and
32,528,771,757.38 32,535,477,384.40 6,705,627.02
shareholders’ equity
Explanation of balance sheet adjustment of the parent company: Due to the implementation of the
new lease standards, the Company has adjusted the right-of-use assets of RMB6,705,627.02,
non-current liabilities of RMB2,479,921.56 and lease liabilities of RMB4,225,705.46 due within
one year in its financial statements on 1 January 2021.
V. Taxation
1. Main Taxes and Tax Rate
200
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at
the tax rate and paid the VAT
by the amount after deducting
the deductible withholding
VAT VAT at current period, of 1%、3%、5%、6%、9%、13%
which the VAT applicable to
easy collection won’t belong
to the deductible withholding
VAT.
Paid at 5%: Dongguan Konka, XingDa
HongYe, Xinfeng Microcrystalline, Boluo
Konka Precision, Boluo Konka, Ningbo
Kanghanrui, Jiangsu Konka Smart,
Urban Shanghai Konka, Yibin Kangrun, Yibin
The circulating tax actually
maintenance and Kangrun Medical, Yibin Kangrun
paid
construction tax Environmental Protection. Paid at 7%:
Konka Capital. Paid at 1%: Jiangxi Konka,
Jiangxi High Transparent Substrate,
Jiangkang (Shanghai) Technology. Paid at
7%: other subsidiaries.
The circulating tax actually
Education surtax 3%
paid
Local education The circulating tax actually 1% for subsidiary Shanghai Konka, and 2%
surtax paid for other companies
Enterprise income 25%/2.Tax Preference and Approved
Taxable income
tax Documents
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Electronics Technology, Anhui Konka, Anhui
Tongchuang, Xingda Hongye, Wankaida, Jiangxi
Konka, Xinfeng Microcrystalline, Jiangxi High 15%
Transparent Substrate, Sichuan Konka, Boluo
Konka Precision, Chongqing Kangxingrui
Hong Kong Konka, Konka Electrical Appliances
International Trading, Jiali International,
Kangjietong, Jiaxin Technology, Jiaxin
Technology, Konka Electrical Appliances 16.5%
Investment,, Konka Mobility, Kowin Memory
(Hong Kong)
Chain Kingdom Memory Technologies 8.25%/16.5%
Konka Europe 15%
Kanghao Technology 22.5%
201
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Name of entity Income tax rate
Konka North America 21%
The Company as the Parent and other subsidiaries 25%
Note: According to regulations of Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Administration of Taxation, resident enterprises without business
establishment or places of legal persons should be tax payment enterprises with the administrative
measures of income tax of “unified computing, level-to-level administration, local prepayment,
liquidation summary, and finance transfer”. It came into force from 1 January 2008. According to
the above methods, the Company’s sales branch companies in each area will hand in the corporate
income taxes in advance from 1 January 2008 and will be final settled uniformly by the Company
at the year-end.
2. Tax Preference and Approved Documents
(1) According to Caishui [2019] No. 13: Notice on the implementation of the inclusive tax
reduction and exemption policy for small and micro enterprises, from 1 January 2019 to 31
December 2021, the annual taxable income of small and profitable enterprises is not The portion
exceeding RMB1 million will be reduced to 25% of the taxable income, and the corporate income
tax will be paid at the rate of 20%; the portion of the annual taxable income exceeding RMB1
million but not exceeding RMB3 million will be reduced by 50% Include the taxable income and
pay corporate income tax at a rate of 20%.
(2) On 9 September 2019, Anhui Konka, the subsidiary of the Company, obtained a certificate of
high-tech enterprise jointly issued by Anhui Science and Technology Department, Anhui
Provincial Department of Finance and Anhui Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR201934000966 and is valid for three years. According to
relevant tax regulations, Anhui Konka shall enjoy relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2019 to 2021 and pay the enterprise income tax at a
preferential tax rate of 15%.
(3) On 16 September 2019, Xinfeng Microcrystalline, the subsidiary of the Company, obtained a
high-tech enterprise certificate jointly issued by Jiangxi Science and Technology Department,
Jiangxi Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State
Administration of Taxation. The certificate number is GR201936000744 and is valid for three
years. According to relevant tax regulations, Xinfeng Microcrystalline shall enjoy relevant
preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021
and pay the enterprise income tax at a preferential tax rate of 15%.
(4) On 20 November 2019, Anhui Tongchuang, the subsidiary of the Company, obtained a
202
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
high-tech enterprise certificate jointly issued by Anhui Science and Technology Department,
Anhui Provincial Department of Finance and Anhui Provincial Tax Bureau of the State
Administration of Taxation. The certificate number is GR201934001964 and is valid for three
years. According to relevant tax regulations, Anhui Tongchuang shall enjoy relevant preferential
tax policies for high-tech enterprises for three consecutive years from 2019 to 2021 and pay the
enterprise income tax at a preferential tax rate of 15%.
(5) On 28 November 2019, Sichuan Konka, a subsidiary of the Company, obtained a certificate of
high-tech enterprise jointly issued by Sichuan Science and Technology Department, Sichuan
Provincial Department of Finance and Sichuan Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR201951002096 and is valid for three years. According to
relevant tax regulations, Sichuan Konka shall enjoy relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2019 to 2021 and pay the enterprise income tax at a
preferential tax rate of 15%.
(6) On 2 December 2019, Bokang Precision, a subsidiary of the Company, obtained the high-tech
enterprise certificate jointly issued by the Guangdong Provincial Department of Science and
Technology, the Guangdong Provincial Department of Finance, the Guangdong State Taxation
Bureau, and the Guangdong Local Taxation Bureau. The certificate number is GR201944007820,
valid for three years, according to relevant tax regulations, Bokang Precision has enjoyed relevant
preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021,
and is subject to corporate income tax at a preferential tax rate of 15%.
(7) On 9 December 2019, Electronics Technology, the subsidiary of the Company, obtained a
Certificate of High-tech Enterprise jointly issued by Shenzhen Science and Technology
Department, Shenzhen Provincial Department of Finance and Shenzhen Provincial Tax Bureau of
the State Administration of Taxation. The certificate number is GR201944204287 and is valid for
three years. According to relevant tax regulations, Electronics Technology shall enjoy relevant
preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021
and pay the enterprise income tax at a preferential tax rate of 15%.
(8) On 14 September 2020, Jiangxi Konka, the subsidiary of the Company, obtained a high-tech
enterprise certificate jointly issued by Jiangxi Science and Technology Department, Jiangxi
Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR202036000802 and is valid for three years. According to
relevant tax regulations, Jiangxi Konka shall enjoy relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2020 to 2022 and pay the enterprise income tax at a
preferential tax rate of 15%.
(9) On 14 September 2020, Jiangxi High Transparent Substrate, the subsidiary of the Company,
203
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
obtained a high-tech enterprise certificate jointly issued by Jiangxi Science and Technology
Department, Jiangxi Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the
State Administration of Taxation. The certificate number is GR202036000568 and is valid for
three years. According to relevant tax regulations, Jiangxi High Transparent Substrate shall enjoy
relevant preferential tax policies for high-tech enterprises for three consecutive years from 2020
to 2022 and pay the enterprise income tax at a preferential tax rate of 15%.
(10) On 11 December 2020, Wankaida, the subsidiary of this Company obtained the high-tech
enterprise certificate (certificate No.: GR202044201940) jointly issued by Shenzhen Technology
Innovation Committee, Finance Committee of Shenzhen Municipality, Shenzhen Taxation Bureau
of SAT with a valid period of three years. According to related taxation regulations, Wankaida
enjoys related taxation preferential policies as a high-tech enterprise from 2020 to 2022 and pays
the enterprise income tax as per the preferential tax rate of 15%.
(11) In accordance with the Notice on Tax Policy Issues Involved in the Further Implementation
of the Western Development Strategy (C.S. [2011] No. 58) and the Announcement on Corporate
Income Tax Issues Involved in the Further Implementation of the Western Development Strategy
(Announcement [2012] No. 12 by the State Taxation Administration), an enterprise established in
the western region who is mainly engaged in an industry specified in the Catalogue of
Encouraged Industries in the Western Region and whose main business income accounts for over
70% of its gross income in the current year, is entitled to a reduced corporate income tax rate of
15%. Chongqing Kangxingrui and Chengdu Konka Electronic, subsidiaries of the Company, are
eligible for this preferential tax policy.
(12) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of
Finance and the State Administration of Taxation, for the VAT general taxpayers who sell their
self-developed and produced software products, the VAT shall be levied at the rate of 13%, and
then the part that the actual tax burden on their VAT exceeds 3 will be implemented with the
policy of immediate withdrawal. The Company’s subsidiaries, Wankaida Technology, Youzhihui,
Electronics Technology and Anhui Tongchuang all enjoy this preferential policy.
(13) On 20 December 2021, XingDa HongYe, a subsidiary of the Company, obtained the
"High-tech Enterprise Certificate" jointly issued by Department of Science and Technology of
Guangdong Province, Department of Finance of Guangdong Province and Guangdong Provincial
Tax Service of State Taxation Administration (No. GR202144002737), which will be valid for
three years. According to relevant tax regulations, XingDa HongYe enjoys relevant preferential
tax policies for high-tech enterprises for three consecutive years from 2021 to 2023, and pays
enterprise income tax at a reduced rate of 15%.
204
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
VI. Notes to Major Items in the Consolidated Financial Statements of the Company
Unless otherwise noted, the following annotation project (including the main projects,
annotation of the financial statement of the Company), the year-beginning/opening refers to 1
January 2021, the year-end/ending refers to 31 December 2021, this year refers to the period from
1 January 2021 to 31 December 2021 and the last year refers to the period from 1 January 2020 to
31 December 2020. The monetary unit is RMB.
1. Monetary Assets
Item Ending balance Opening balance
Cash on hand 363.22 16,052.88
Bank deposits 5,968,346,855.81 4,298,040,060.36
Other monetary assets 521,205,992.21 1,133,474,067.66
Total 6,489,553,211.24 5,431,530,180.90
Of which: total amount deposited 167,359,880.91
202,052,024.94
overseas
Note: The period-end balance of other currency assets is mainly margin deposits, financial
supervision account funds and other deposits subject to usage restrictions. For details, refer to
Note VI-66 Assets with restricted ownership or use right.
2. Trading Financial Assets
Item Ending balance Opening balance
Financial assets at fair value
618,249,541.66
through profit or loss
Of which: debt instrument
investment
Equity instrument
investment
Structural deposits 618,249,541.66
Financial assets assigned to be
measured at fair value through
profit or loss
Of which: debt instrument
investment
Hybrid instrument
investment
Others
Total 618,249,541.66
3.Notes Receivable
205
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(1) Notes Receivable Listed by Category
Item Ending balance Opening balance
Commercial acceptance bill 561,724,266.27 1,012,776,099.43
Bank’s acceptance bill 1,215,753,215.01 1,345,404,094.53
Total 1,777,477,481.28 2,358,180,193.96
(2) Notes Receivable Pledged by the Company at the Year-end
Item Ending pledged amount
Bank’s acceptance bill 540,032,830.08
Total 540,032,830.08
(3) Notes Receivable which Had Endorsed by the Company or had Discounted and had
not Due on the Balance Sheet Date at the Year-end
Item Derecognized amount at Non-derecognized
the Year-end amount at the Year-end
Bank’s acceptance bill 1,391,622,056.42
Commercial acceptance bill 94,412,282.56
Total 1,391,622,056.42 94,412,282.56
(4) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to
Execute the Contract or Agreement at the Year-end
Item Amount of the notes transferred to
accounts receivable at the Year-end
Bank’s acceptance bill -
Commercial acceptance bill 26,884,881.52
Total 26,884,881.52
Note: Notes transferred to accounts receivable because drawer of the notes failed to execute
the contract or agreement at the year-end are mainly notes past due of the Company.
206
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(5) Listed by Withdrawal Methods for Bad Debt Provision
Ending balance
Carrying balance Bad debt provision
Category Withdrawal Carrying value
Amount Proportion (%) Amount proportion
(%)
Provision for bad debts provided
- - - - -
individually
Bad debt provision withdrawn by
1,789,175,291.65 100.00 11,697,810.37 0.65 1,777,477,481.28
portfolio
Of which: Bank's acceptance bill 1,215,753,215.01 67.95 1,215,753,215.01
Commercial acceptance bill 573,422,076.64 32.05 11,697,810.37 2.04 561,724,266.27
Total 1,789,175,291.65 100.00 11,697,810.37 0.65 1,777,477,481.28
(continued)
Opening balance
Carrying balance Bad debt provision
Category
Withdrawal Carrying value
Amount Proportion (%) Amount proportion
(%)
Provision for bad debts provided
- - - - -
individually
Bad debt provision withdrawn by
2,387,417,262.59 100.00 29,237,068.63 1.22 2,358,180,193.96
portfolio
Of which: Bank's acceptance bill 1,345,404,094.53 56.35 1,345,404,094.53
207
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Commercial acceptance bill 1,042,013,168.06 43.65 29,237,068.63 2.81 1,012,776,099.43
Total 2,387,417,262.59 100.00 29,237,068.63 1.22 2,358,180,193.96
1) In the portfolio, notes receivable, for which the provision for expected credit loss was made according to commercial acceptance bills
Ending balance
Name Withdrawal proportion
Carrying balance Bad debt provision
(%)
Within 1 year 573,422,076.64 11,697,810.37 2.04
Total 573,422,076.64 11,697,810.37 2.04
(6) Bad Debt Provision for Notes Receivable Withdrawn, Collected or Reversed this Year
Changes in this year
Category Opening balance Withdrawal Reversal or Written-off or Ending balance
recovery verified
Commercial acceptance bill 29,237,068.63 17,539,258.26 11,697,810.37
Bank’s acceptance bill
Total 29,237,068.63 17,539,258.26 11,697,810.37
(7) Notes Receivable Actually Written off this Year
There were no notes receivable actually written off this year.
208
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
4.Accounts Receivable
(1) Accounts Receivable Listed by Withdrawal Methods for Bad Debts
Ending balance
Carrying balance Bad debt provision
Category Withdrawal
Proportion Carrying value
Amount Amount proportion
(%)
(%)
Accounts
receivable of
expected credit 1,608,537,820.3 546,570,689.5
33.82 1,061,967,130.77 66.02
losses
0 3
withdrawn
individually
Accounts
receivable of
expected credit
losses
withdrawn by
portfolio
Of which: 3,148,039,065.6 2,851,158,791.
66.18 296,880,274.15 9.43
Aging portfolio
9 54
Project
payment
portfolio
Subtotal of 3,148,039,065.6 2,851,158,791.
66.18 296,880,274.15 9.43
portfolios
9 54
4,756,576,885.9 3,397,729,481.
Total 100.00 1,358,847,404.92 28.57
9 07
(continued)
Opening balance
Category
Carrying balance Bad debt provision Carrying value
209
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Withdr
Proport awal
Amount Amount
ion (%) proport
ion (%)
Accounts
receivable of
expected credit 1,384,462,893.38 27.50 750,096,749.22 54.18 634,366,144.16
losses withdrawn
individually
Accounts
receivable of
expected credit
losses withdrawn
by portfolio
Of which: Aging
3,004,054,396.28 59.66 271,291,702.62 9.03 2,732,762,693.66
portfolio
Project
646,556,634.10 12.84 112,787,848.33 17.44 533,768,785.77
payment portfolio
Subtotal of
3,650,611,030.38 72.50 384,079,550.95 10.52 3,266,531,479.43
portfolios
Total 5,035,073,923.76 100.00 1,134,176,300.17 22.53 3,900,897,623.59
1) Provision for bad debts of accounts receivable provided individually
Ending balance
Withdr
awal
Name
Carrying balance Bad debt provision propor Withdrawal reason
tion
(%)
Shanghai Huaxin
International 300,018,021.01 270,016,218.90 90.00 Debt default
Group Co., Ltd.
Hongtu Sanbao
High-tech Agreement
200,000,000.00 80,000,000.00 40.00
Technology Co., reorganization
Ltd.
210
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Withdr
awal
Name
Carrying balance Bad debt provision propor Withdrawal reason
tion
(%)
Tewoo Group Judicial
200,000,000.00 100,000,000.00 50.00
Co., Ltd. reorganization
Shenzhen Yaode It is not expected
Technology Co., 131,032,162.46 65,516,081.23 50.00 to recover all of
Ltd. them
Guangan Ouqishi
It is not expected
Electronic
113,230,553.53 101,907,498.18 90.00 to recover all of
Technology Co.,
them
Ltd.
.Zhongfu
Tiangong
Construction
It is not expected
Group Co., Ltd.
71,789,096.65 46,662,912.82 65.00 to recover all of
(formerly known
them
as “Zhonghegong
Construction
Group Co., Ltd.)
CCCC First
Expected to be
Harbor
65,221,300.00 58,699,170.00 90.00 difficult to recover
Engineering
in full
Company Ltd.
China Energy Expected to be
Electric Fuel Co., 50,000,000.00 42,500,000.00 85.00 difficult to recover
Ltd. in full
Tahoe Group Co., Debt
50,000,000.00 40,000,000.00 80.00
Ltd. reorganization
The counterparty
H-BUSTER DO
is bankrupt and is
BRASIL 17,535,181.99 17,535,181.99 100.00
expected to be
INDUSTRIA
difficult to recover
It is not expected
Others 409,711,504.66 239,130,067.65 58.37 to recover all of
them
Total 1,608,537,820.30 1,061,967,130.77 --
2) Bad debt provision for accounts receivable made as per portfolio
Aging Ending balance
211
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Withdrawal
Carrying balance Bad debt provision
proportion (%)
Within 1 year 2,586,924,651.24 52,773,746.68 2.04
1 to 2 years 244,412,553.16 24,490,137.82 10.02
2 to 3 years 102,590,449.49 23,277,772.99 22.69
3 to 4 years 50,605,908.73 32,833,113.59 64.88
Over 4 years 163,505,503.07 163,505,503.07 100.00
Total 3,148,039,065.69 296,880,274.15
This portfolio is recognized based on the aging characteristics of accounts receivable, and the
withdrawal proportion of bad debt provision is recognized based on the historical loss rate and
forward-looking factors.
(2) Accounts Receivable Listed by Aging Portfolio
Aging Ending balance
Within 1 year 2,601,660,789.76
1 to 2 years 333,747,488.46
2 to 3 years 884,259,988.32
3 to 4 years 693,020,555.34
Over 4 years 243,888,064.11
Subtotal 4,756,576,885.99
Less: bad debt provision 1,358,847,404.92
Total 3,397,729,481.07
(3) Information of Bad Debt Provision in this Year
Changes in this year
Category Opening balance Reversal or
Withdrawal
recovery
Bad debt provision 1,134,176,300.17 450,036,547.97 20,738,725.44
of accounts
receivable
Total 1,134,176,300.17 450,036,547.97 20,738,725.44
(continued)
Category Changes in this year Ending balance
212
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Decrease for other
Written-off or verified
reasons
Bad debt provision of
accounts receivable 55,426,943.22 149,199,774.56 1,358,847,404.92
Total 55,426,943.22 149,199,774.56 1,358,847,404.92
Decreases for other reasons were the decrease by RMB2,185,240.25 due to exchange rate
changes and the decrease by RMB147,014,534.31 due to the loss of controlling right.
(4) Actually Verified Accounts Receivable in this Year
Item Amount verified
Actually verified accounts receivable 55,426,943.22
Of which the verification of significant accounts receivable:
Wheth
er
occurr
ed
Verification
Nat Verification Reason for becaus
Name of entity procedures
ure Amount verification e of
performed
related
-party
transa
ctions
Pay
ment Approved by
Empire Electronic Expected to be
for 38,320,705.92 the Board of No
Corp unrecoverable
good Directors
s
Pay
ment Approved by
Treeview Business Expected to be
for 11,026,496.17 the Board of No
Registration unrecoverable
good Directors
s
Total -- 49,347,202.09 -- -- --
(5) Receivables with Top 5 Ending Balance Collected by Arrears Party
The total amount of receivables with top 5 ending balance collected by arrears party this
year was RMB1,353,797,907.99, accounting for 28.46% of the total ending balance of accounts
213
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
receivable. The total ending balance of bad debt provision correspondingly withdrawn was
RMB463,558,838.60.
(6)Accounts Receivable Derecognized due to the Transfer of Financial Assets
There were no accounts receivable derecognized due to the transfer of financial assets this
year.
(7)Amount of Assets and Liabilities Formed due to the Transfer and the Continued
Involvement of Accounts Receivable
There were no assets or liabilities formed due to the transfer and the continued involvement
of accounts receivable this year.
5. Accounts Receivable Financing
Item Ending balance Opening balance
Notes Receivable 71,490,688.54 84,057,197.44
Total 71,490,688.54 84,057,197.44
6.Prepayments
(1) Age of Prepayments
Ending balance Opening balance
Item Amount Proportion Amount Proportion
(%) (%)
Within 1
602,386,221.38 95.41 1,165,964,102.58 98.60
year
One to two
20,098,838.22 3.18 14,282,024.18 1.21
years
2 to 3 years 8,614,486.12 1.36 733,390.33 0.06
Over 3 years 301,408.14 0.05 1,492,198.15 0.13
Total 631,400,953.86 100.00 1,182,471,715.24 100.00
Note: The amount of prepayments aged over 1 year at the end of the period is
RMB29,014,732.48, accounting for 4.59% of the total balance of prepayments of the Company,
and consists mainly of payments for goods afloat or unsettled payments.
214
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(2) Prepayments to Suppliers from Top 5 Prepaid Parties Classified based on the
Ending Balance
The total amount of prepayments with top 5 ending balance collected by prepaid party was
RMB217,058,081.10, accounting for 34.38% of the total ending balance of prepayments.
7.Other Receivables
Item Ending balance Opening balance
Interests receivable 2,573,082.79 45,109,425.85
Dividends receivable - 4,947,848.62
Other Receivables 1,834,886,622.85 2,095,152,529.23
Total 1,837,459,705.64 2,145,209,803.70
7.1 Interests Receivable
(1) Category of Interests Receivable
Item Ending balance Opening balance
Term deposit 2,002,526.91 10,235,673.76
Entrusted loans - 34,303,196.21
Factoring interest 570,555.88 570,555.88
Total 2,573,082.79 45,109,425.85
(2) Withdrawal of Bad Debt Provision for Interests Receivable
The Company did not have impaired interests receivable.
7.2 Dividends Receivable
(1) Category of Dividends Receivable
Item (or investee) Ending balance Opening balance
Chongqing Qingjia Electronics Co., Ltd. - 547,848.62
Binzhou Beihai Weiqiao Solid Waste -
4,400,000.00
Treatment Co., Ltd.
Total - 4,947,848.62
7.3 Other Receivables
(1) Classified by Account Nature
215
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending carrying Opening carrying
Nature
balance balance
Deposit and margin 1,356,193,440.22 1,641,653,623.68
Intercourse funds among minority
shareholders in the business consolidation not 173,487,141.27 176,427,511.36
under the same control and related parties
Energy-saving subsidies receivable 152,399,342.00 152,399,342.00
Disposal of non-current assets 132,331,700.00
Others 1,489,929,312.88 638,804,307.66
Total 3,172,009,236.37 2,741,616,484.70
(2) Withdrawal of Bad Debt Provision for Other Receivables
Stage 1 Stage 2 Stage 3
Expected loss in the Expected credit
Bad debt Expected credit
duration (credit losses for the entire Total
provision loss of the next
impairment not duration (with credit
12 months
occurred) impairment)
Balance as at 1
22,563,051.40 60,086,857.29 563,814,046.78 646,463,955.47
January 2021
In this year,
carrying amount
of other -13,618,838.48 4,657,312.43 8,961,526.05
receivables on 1
January 2021
- Transferred to
-9,301,126.07 9,301,126.07
the Phase II
- Transferred to
-4,317,712.41 -4,643,813.64 8,961,526.05
the Phase III
- Transferred
back to the Phase
II
- Transferred
back to the Phase
I
216
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Stage 1 Stage 2 Stage 3
Expected loss in the Expected credit
Bad debt Expected credit
duration (credit losses for the entire Total
provision loss of the next
impairment not duration (with credit
12 months
occurred) impairment)
Amount
withdrawn this 8,441,937.69 122,358,083.55 564,715,095.80 695,515,117.04
year
Amount
transferred back
this year
Amount
written-off this
year
Amount verified
this year
Other changes 33,753.96 -4,890,212.95 -4,856,458.99
Balance as at 31
17,419,904.57 182,212,040.32 1,137,490,668.63 1,337,122,613.52
December 2021
Note: The first stage is that credit risk has not increased significantly since initial recognition.
For other receivables with an aging portfolio and a low-risk portfolio within 1 year, the loss
provision is measured according to the expected credit losses in the next 12 months.
The second stage is that credit risk has increased significantly since initial recognition but
credit impairment has not yet occurred. For other receivables with an aging portfolio and a
low-risk portfolio that exceed 1 year, the loss provision is measured based on the expected credit
losses for the entire duration.
The third stage is the credit impairment after initial confirmation. For other receivables of
credit impairment that have occurred, the loss provision is measured according to the credit losses
that have occurred throughout the duration.
(3) Withdrawal of Bad Debt Provision for Other Receivables by Portfolio
Ending balance
Category
Carrying balance Bad debt provision Carrying value
217
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Withd
rawal
Proport
Amount Amount propor
ion (%)
tion
(%)
Other receivables of
expected credit
1,458,258,132.07 45.97 1,137,490,668.63 78.00 320,767,463.44
losses withdrawn
individually
Other receivables of
bad debt provision
withdrawn by credit
risk characteristic
portfolio:
Aging portfolio 1,494,744,336.27 47.13 188,949,294.11 12.64 1,305,795,042.16
Low-risk
219,006,768.03 6.90 10,682,650.78 4.88 208,324,117.25
portfolio
Subtotal of
1,713,751,104.30 54.03 199,631,944.89 11.65 1,514,119,159.41
portfolios
Total 3,172,009,236.37 100.00 1,337,122,613.52 42.15 1,834,886,622.85
(continued)
Beginning balance
Carrying balance Bad debt provision
Category Withdr
Propor Carrying value
awal
Amount tion Amount
proport
(%)
ion (%)
Other receivables of
expected credit
1,177,068,758.61 42.93 563,814,046.78 47.90 613,254,711.83
losses withdrawn
individually
Other receivables of
bad debt provision
withdrawn by credit
risk characteristic
portfolio:
Aging portfolio 1,327,676,325.32 48.43 73,662,861.99 5.55 1,254,013,463.33
Low-risk portfolio 236,871,400.77 8.64 8,987,046.70 3.79 227,884,354.07
Subtotal of
1,564,547,726.09 57.07 82,649,908.69 5.28 1,481,897,817.40
portfolios
Total 2,741,616,484.70 100.00 646,463,955.47 23.58 2,095,152,529.23
(4) Other Receivables Listed by Aging
Aging Ending balance
Within 1 year 942,744,673.44
1 to 2 years 678,081,308.94
2 to 3 years 1,126,670,022.72
3 to 4 years 184,650,929.12
218
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Aging Ending balance
4 to 5 years 5,037,204.05
Over 5 years 234,825,098.10
Subtotal 3,172,009,236.37
Less: bad debt provision 1,337,122,613.52
Total 1,834,886,622.85
(5)Bad Debt Provision for Other Receivables
The amount of bad debt provision withdrawn this year was RMB695,515,117.04, mainly
because the expected credit loss of the advanced deposit and quality reparations receivable for the
whole duration was withdrawn because the supplier of the subsidiary Konka Huanjia was in
abnormal business status and could not make delivery or refund the advanced deposit in the short
term. There was a decrease amounting to RMB4,895,694.21 due to a loss of controlling right over
the subsidiary and an increase amounting to RMB39,235.22 due to exchange rate changes.
(6)Other Receivables Actually Written off this Year
There were no other receivables actually written off this year.
(7)Other Receivables with Top 5 Ending Balances Collected by Arrears Party
The total amount of other receivables with top 5 ending balance collected by arrears party
this year was RMB1,472,043,115.59, accounting for 46.41% of the total ending balance of other
receivables. The total ending balance of bad debt provision correspondingly withdrawn was
RMB387,846,005.52.
(8) Other Receivables Derecognized due to the Transfer of Financial Assets
There were no other receivables derecognized due to the transfer of financial assets during
the Reporting Period.
(9)Amount of Assets and Liabilities Formed due to the Transfer and the Continued
Involvement of Other Receivables
There were no assets or liabilities formed due to the transfer and the continued involvement
of other receivables during the Reporting Period.
8.Inventories
(1) Category of Inventories
219
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Inventory falling
price
Item
Carrying balance reserves/impairment Carrying value
provision of contract
performance costs
Raw materials 1,297,747,452.36 56,921,789.83 1,240,825,662.53
Semi-finished
188,626,889.60 36,212,915.54 152,413,974.06
products
Products on hand 2,925,212,679.95 252,742,763.86 2,672,469,916.09
Commissioned
2,574,097.17 2,574,097.17
products
Contract
performance 254,159.33 254,159.33
costs
Total 4,414,415,278.41 345,877,469.23 4,068,537,809.18
(continued)
Opening balance
Inventory falling
price
Item
Carrying balance reserves/impairment Carrying value
provision of contract
performance costs
Raw materials 1,239,024,415.74 28,137,287.12 1,210,887,128.62
Semi-finished
158,870,091.24 12,636,819.92 146,233,271.32
products
Products on hand 3,389,343,445.93 249,362,200.01 3,139,981,245.92
Commissioned
7,697,008.23 7,697,008.23
products
Contract
performance 16,502,023.32 16,502,023.32
costs
Total 4,811,436,984.46 290,136,307.05 4,521,300,677.41
(2) Inventory Falling Price Reserves and Impairment Provision of Contract Performance
Costs
Item Opening balance Increase in this year
220
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Withdrawn or
Others
transferred back
Raw materials 28,137,287.12 35,600,375.66
Semi-finished products 12,636,819.92 23,729,201.47
Products on hand 249,362,200.01 100,690,732.50
Commissioned products -
Contract performance
-
costs
Total 290,136,307.05 160,020,309.63
(continued)
Decrease in this year
Item Ending balance
Written-off Others
Raw materials 6,781,713.50 34,159.45 56,921,789.83
Semi-finished products 153,105.85 - 36,212,915.54
Products on hand 97,250,171.95 59,996.70 252,742,763.86
Commissioned products - - -
Contract performance
- - -
costs
Total 104,184,991.30 94,156.15 345,877,469.23
Specific basis for determining the realizable net value and reasons for inventory falling price
reserves and impairment provision for contract performance costs transferred back or written off
during the Reporting Period:
Specific basis for withdrawal of Reasons for write-off of inventory
Item
inventory falling price reserves falling price reserves this year
The realizable net value was lower than They have been sold or collected this
Raw materials
the carrying value year
Semi-finished The realizable net value was lower than They have been sold or collected this
products the carrying value year
Products on The realizable net value was lower than
They have been sold this year
hand the carrying value
9.Contractual Assets
(1) Details of Contractual Assets
221
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Item Carrying balance Impairment Carrying value
provision
Accounts receivable from
settled but conditional - - -
payment projects
Unsettled advertising
- - -
payments
Total - - -
(continued)
Opening balance
Item Carrying balance Impairment Carrying value
provision
Accounts receivable from
settled but conditional 3,002,127,112.18 180,488,971.89 2,821,638,140.29
payment projects
Unsettled advertising
49,375,837.18 1,007,267.08 48,368,570.10
payments
Total 3,051,502,949.36 181,496,238.97 2,870,006,710.39
(2) Amount and Reasons of Significant Changes in the Carrying Value of
Contractual Assets in the Year
Item Change in amount Reason
Accounts receivable from Loss of controlling right over
settled but conditional -2,821,638,140.29 relevant subsidiaries due to
payment projects equity changes
Total -2,821,638,140.29 --
(3) Withdrawal of Impairment Provision for Contractual Assets this Year
Amount Amount Amount Decrease for Reason
withdraw transferr written other reasons
Item
n this ed back off/verified this
year this year year
12,120,66
Accounts 168,368,302.09 Loss of controlling
9.80
222
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount Amount Amount Decrease for Reason
withdraw transferr written other reasons
Item
n this ed back off/verified this
year this year year
receivable right over relevant
from subsidiaries due to
settled but equity changes
conditiona
l payment
projects
Unsettled Loss of controlling
advertisin 169,059.1 174,168.0 right over relevant
1,002,158.19
g 5 4 subsidiaries due to
payments equity changes
169,059.1 12,294,83
Total 169,370,460.28 -
5 7.84
10.Non-current Assets Due within One Year
Item Ending balance Opening balance Nature
Entrustment
Debt investments due within loans to ass
75,000,000.00
one year ociated enter
prises
Long-term receivables due
within one year(See Note Financing
VI-11 for details.) 28,105,523.78 37,310,158.82 lease
accounts
Total 28,105,523.78 112,310,158.82
(1) Significant debt obligation investment/ other debt obligation investment at the
period-beginning
Opening balance
Actual
Company Coupon Maturity
Par value interest
rate date
rate
Yibin OCT Sanjiang Real Estate
35,000,000.00 5.70% 5.70% 2021/4/24
Co., Ltd.
223
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Opening balance
Actual
Company Coupon Maturity
Par value interest
rate date
rate
Yibin OCT Sanjiang Real Estate
40,000,000.00 5.70% 5.70% 2021/10/24
Co., Ltd.
Total 75,000,000.00
11.Other Current Assets
Item Ending balance Opening balance
Principal and interest of entrusted loans to joint
1,624,197,904.35 826,684,400.00
ventures
Prepaid taxes, deductible input taxes and refund
649,198,781.95 926,643,711.18
of tax for export receivable
Temporary differences in input taxes 148,183,307.23
Refund costs receivable 21,501,882.70 7,458,293.85
Others 5,064,822.24 4,176,771.13
Total 2,299,963,391.24 1,913,146,483.39
12.Long-term Receivables
(1) List of Long-term Receivables
Ending balance
Item Bad debt
Carrying balance Carrying value
provision
Financing lease accounts 10,960,622.92 - 10,960,622.92
Of which: unrealized financing
390,068.94 - 390,068.94
income
Cash deposits of long-term
35,640,400.00 - 35,640,400.00
receivables
Long-term receivables of
- - -
projects with franchise rights
Less: Long-term receivables due
within one year 28,105,523.78 - 28,105,523.78
(See Note VI-11 for details.)
Total 18,495,499.14 - 18,495,499.14
224
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(continued)
Opening balance
Item Bad debt
Carrying balance Carrying value
provision
Financing lease accounts 44,609,921.40 - 44,609,921.40
Of which: unrealized financing
2,526,836.56 - 2,526,836.56
income
Cash deposits of long-term
41,090,400.00 - 41,090,400.00
receivables
Long-term receivables of
351,107,041.45 - 351,107,041.45
projects with franchise rights
Less: Long-term receivables due
within one year 37,310,158.82 - 37,310,158.82
(See Note VI-11 for details.)
Total 399,497,204.03 - 399,497,204.03
225
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
13.Long-term Equity Investments
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Konka Ventures
Development (Shenzhen) 2,250,590.00 2,450,000.00 - - 194,506.41 -
Co., Ltd.
Nanjing Zhihuiguang
Information Technology 1,573,831.23 - - - 68,961.84 -
Research Institute Co., Ltd.
Feidi Technology (Shenzhen)
10,671,986.45 - - - -203,430.62 -
Co., Ltd. and its subsidiaries
Shenzhen Kangyue
33,146,954.42 - - - -642,689.39 -
Enterprise Co., Ltd.
Foshan Pearl River Media
Creative Park Cultural 4,900,000.00 - - - -720,300.00 -
Development Co., Ltd.
Kangkai Technology Service
254,670.00 - - - -25,738.36 -
(Chengdu) Co., Ltd.
Puchuang Jiakang
1,399,457.69 - - - 1,263,178.57 -
Technology Co, Ltd.
Khorgos Yilingfang
Information Technology Co., 1,795.48 - - - -1,795.48 -
Ltd.
226
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Chongqing Qingjia
18,801,653.84 - - - -3,767,312.71 -
Electronics Co., Ltd.
Shenzhen Jielunte
89,187,905.40 - - - 5,090,449.51 -
Technology Co., Ltd.
Panxu Intelligence Co., Ltd. 50,704,696.31 - - - 972,582.57 689,356.22
Orient Excellent (Zhuhai)
3,027,971.50 - - - 2,049,805.87 -
Asset Management Co., Ltd.
Dongfang Konka No. 1
(Zhuhai) Private Equity 336,170,619.84 140,110,271.00 34,987,244.76 - 26,345,141.30 -
Investment Fund (LP)
Tongxiang Wuzhen Kunyu
3,500,000.00 - - - 28,077.43 -
Equity Investment Co., Ltd.
Shenzhen RF-LINK
53,107,714.82 - - - -1,135,930.87 -
Technology Co., Ltd.
Weihai Water Environmental
Protection Technology Co., 2,526,483.15 - - - -204.72 -
Ltd.
Weihai Yiheng
Environmental Technology 4,812,630.25 - - - -11,483.09 -
Co., Ltd.
Huoqiu Kangrun Kaitian 52,434,987.50 12,435,012.50 - - - -
Water Environmental
227
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Protection Co., Ltd.
Huarun Environmental
Protection Water Treatment 17,316,442.28 - - - 746,613.71 -
Co., Ltd.
Binzhou Beihai Weiqiao
Solid Waste Treatment Co., 182,666,028.25 - - - 42,782,013.77 -
Ltd.
Shandong Bishuiyuan
Environmental Technology 26,390,437.98 - - - 988,095.33 -
Co., Ltd.
Yunnan Hongkang Solid
Waste Disposal Utilization 2,809,775.13 - - - -275,183.57 -
Co., Ltd.
Anhui Kaikai Shijie
419,065,032.33 - - - -343,726.37 -
E-commerce Co., Ltd.
Wanjun Technology
175,204,642.85 - 173,158,177.02 - -2,046,465.83 -
(Kunshan) Co., Ltd.
Kunshan Kangsheng
Investment Development 269,673,264.00 - - - 47,428,605.51 -
Co., Ltd.
Chutian Dragon Co., Ltd. 650,206,807.02 - - - 4,003,819.91 -
Helongjiang Longkang Zhijia 1,060,725.79 - - - 56,805.53 -
228
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Technology Co., Ltd.
Konka Green, Konka
75,261,304.56 - 75,261,304.56 - - -
Technology
Shaanxi Silu Yunqi Smart
17,649,295.81 - - - -3,536,068.23 -
Technology Co., Ltd.
Shenzhen Kanghongxing
- - - - - -
Smart Technology Co., Ltd.
Shenzhen Zhongbing Konka
2,214,307.33 - - - -2,214,307.33 -
Technology Co., Ltd.
Shenzhen Bosser New
58,400,000.00 - - - 2,053,041.59 -
Materials Co., Ltd.
Shenzhen Yaode Technology
219,357,772.76 - - - -4,798,303.41 -
Co., Ltd.
Wuhan Tianyuan
Environmental Protection 304,654,243.69 - - - 20,991,597.22 -
Co., Ltd.
Chuzhou Konka Technology
Industry Development Co., 49,658,397.02 - - - - -
Ltd.
Chuzhou Kangjin Health
Industrial Development Co., 118,122,798.37 - - - - -
Ltd.
229
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Haimen Kangjian
Technology Industrial Park
120,729,335.67 - - - -4,434,526.73 -
Operations and Management
Co., Ltd.
Chuzhou Kangxin Health
Industry Development Co., 187,180,000.00 - - - -1,902,411.75 -
Ltd.
Dongguan Konka Investment
563,500,000.00 - - - -24,396,079.70 -
Co., Ltd.
Chongqing Chengda Real
Estate Co., Ltd. (English 29,205,000.00 - 28,901,627.59 - -303,372.41 -
name found on the Internet.)
Shenzhen Morsemi
Semiconductor Technology 2,723,686.36 - - - -327,937.63 -
Co., Ltd.
Shandong Econ Technology
- - - 1,024,944,000.00 - -
Co., Ltd.
Dongguan Kangjia New
Materials Technology Co., - - - 6,920,620.00 - -
Ltd.
Shenzhen E2info Network
- - - 1,021,011,302.04 - -
Technology Co., Ltd.
230
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Yantai Kangyun Industrial
- 9,180,000.00 - 69,020,000.00 -1,478,735.09 -
Development Co., Ltd.
E3 (Hainan) Technology Co.,
58,715,678.97 - - - - -
Ltd.
Shenzhen Konka Jiapin
Intelligent Electrical 3,973,386.95 - - - -51,598.78 -
Apparatus Co., Ltd.
Shenzhen Konda E-display
81,955,858.27 - - - 974,662.35 -
Co., Ltd.
Chongqing Yuanlv Benpao
49,500,000.00 - - - -16,040,179.15 -
Real Estate Co., Ltd.
Shenzhen Kangxin Property
- 25,500,000.00 25,500,000.00 - - -
Co., Ltd.
Shenzhen Kangpeng Digital
- 9,000,000.00 - - -3,297,481.80 -
Technology Co., Ltd.
Yantai Kangtang
Construction Development 19,020.00 - - - -1,279.51 -
Co., Ltd.
Dongguan Kangzhihui
16,172,903.60 9,800,000.00 - - -2,444,679.14 -
Electronics Co., Ltd.
Sichuan Huayi Jiakang
- 400,000.00 - - -60,106.68 -
Technology Co., Ltd.
231
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Sichuan Aimijiakang
- 2,000,000.00 - - 138.36 -
Technology Co., Ltd.
Beijing Konka Jingyuan
766,290.97 - - - - -
Technology Co., Ltd.
Chongqing Liangshan
Enterprise Management Co., - 50,000.00 - - 3,673.48 -
Ltd.
Shenzhen Kangene
Technology Innovation - 900,000.00 - - 7,025.65 -
Development Co., Ltd.
Shandong Kangfei Intelligent
Electrical Appliances Co., 2,148,063.47 - - - -669,374.01 -
Ltd.
Henan Kangfei Intelligent
Electrical Appliances Co., 1,059,137.34 682,000.00 - - 91,510.20 -
Ltd.
Dalian Xinguan Technology
- 50,000,000.00 - - -2,490,505.08 -
Co., Ltd.
Guangdong Kangyuan
- 6,680,000.00 - - 196,309.08 2,338,000.00
Semiconductor Co., Ltd.
Chongqing Kangyiqing
- 1,000,000.00 - - -204,914.87 -
Technology Co., Ltd.
232
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Shenzhen Kangying
Semiconductor Technology - 11,000,000.00 - - 416,062.86 -
Co., Ltd.
KK Smartech Limited 1,441,263.59
Shenzhen Konka Electrical
1.00
Appliances Co., Ltd.
Total 4,375,833,584.65 281,187,283.50 337,808,353.93 2,123,337,186.63 78,926,555.74 3,027,356.22
(continued)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Konka Ventures Development
- - - - 4,895,096.41 -
(Shenzhen) Co., Ltd.
Nanjing Zhihuiguang
Information Technology - - - - 1,642,793.07 -
Research Institute Co., Ltd.
Feidi Technology (Shenzhen) - - - - 10,468,555.83 -
233
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Co., Ltd. and its subsidiaries
Shenzhen Kangyue Enterprise
- - - - 32,504,265.03 -
Co., Ltd.
Foshan Pearl River Media
Creative Park Cultural - - - - 4,179,700.00 -
Development Co., Ltd.
Kangkai Technology Service
- - - - 228,931.64 -
(Chengdu) Co., Ltd.
Puchuang Jiakang Technology
- 826,052.90 - - 1,836,583.36 -
Co, Ltd.
Khorgos Yilingfang
Information Technology Co., - - - - - -
Ltd.
Chongqing Qingjia Electronics
- - - - 15,034,341.13 -
Co., Ltd.
Shenzhen Jielunte Technology
- - - - 94,278,354.91 -
Co., Ltd.
Panxu Intelligence Co., Ltd. - - - - 52,366,635.10 -
Orient Excellent (Zhuhai)
- - - - 5,077,777.37 -
Asset Management Co., Ltd.
Dongfang Konka No. 1
(Zhuhai) Private Equity - - - - 467,638,787.38 -
Investment Fund (LP)
234
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Tongxiang Wuzhen Kunyu
- - - - 3,528,077.43 -
Equity Investment Co., Ltd.
Shenzhen Xiaorui Technology
- - 51,971,783.95 - - 85,656,027.35
Co., Ltd.
Weihai Water Environmental
Protection Technology Co., - - - -2,526,278.43 - -
Ltd.
Weihai Yiheng Environmental
- - - -4,801,147.16 - -
Technology Co., Ltd.
Huoqiu Kangrun Kaitian Water
Environmental Protection Co., - - - -64,870,000.00 - -
Ltd.
Huarun Environmental
Protection Water Treatment - - - -18,063,055.99 - -
Co., Ltd.
Binzhou Beihai Weiqiao Solid
- - - -225,448,042.02 - -
Waste Treatment Co., Ltd.
Shandong Bishuiyuan
Environmental Technology - - - -27,378,533.31 - -
Co., Ltd.
Yunnan Hongkang Solid Waste
- - - -2,534,591.56 - -
Disposal Utilization Co., Ltd.
235
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Anhui Kaikai Shijie
- - - 418,721,305.96 -
E-commerce Co., Ltd.
Wanjun Technology (Kunshan)
- - - - - -
Co., Ltd.
Kunshan Kangsheng
Investment Development Co., - - - - 317,101,869.51 -
Ltd.
Chutian Dragon Co., Ltd. - 6,720,000.00 - - 647,490,626.93 -
Helongjiang Longkang Zhijia
- - - - 1,117,531.32 2,470,398.03
Technology Co., Ltd.
Konka Green, Konka
- - - - - -
Technology
Shaanxi Silk Road Cloud
- - - - 14,113,227.58 -
Intelligent Tech Co., Ltd.
Shenzhen Kanghongxing Smart
- - - - - 12,660,222.73
Technology Co., Ltd.
Shenzhen Zhongbin Konka
- - - - - -
Technology Co., Ltd.
Shenzhen Bosser New
- - - - 60,453,041.59 18,536,771.07
Materials Co., Ltd.
Shenzhen Yaode Technology
- - 214,559,469.35 - 214,559,469.35
Co., Ltd.
236
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Wuhan Tianyuan
Environmental Protection Co., - - - - 325,645,840.91 -
Ltd.
Chuzhou Konka Technology
Industry Development Co., - - - - 49,658,397.02 -
Ltd.
Chuzhou Kangjin Health
Industrial Development Co., - - - - 118,122,798.37 -
Ltd.
Haimen Kangjian Technology
Industrial Park Operations and - - - - 116,294,808.94 -
Management Co., Ltd.
Chuzhou Kangxin Health
Industry Development Co., - - - - 185,277,588.25 -
Ltd.
Dongguan Konka Investment
- - - - 539,103,920.30 -
Co., Ltd.
Chongqing Chengdai Real
Estate Co., Ltd. (English name - - - - - -
found on the Internet.)
Shenzhen Morsemi
Semiconductor Technology - - - - 2,395,748.73 -
Co., Ltd.
237
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Shandong Econ Technology
- - - - 1,024,944,000.00 -
Co., Ltd.
Dongguan Kangjia New
- - - - 6,920,620.00 -
Materials Co., Ltd.
Shenzhen E2info Network
- - - -2,215,717.63 1,018,795,584.41 -
Technology Co., Ltd.
Yantai Kangyun Industrial
- - - - 76,721,264.91 -
Development Co., Ltd.
E3 (Hainan) Technology Co.,
- - - - 58,715,678.97 -
Ltd.
Shenzhen Konka Jiapin
Intelligent Electrical Apparatus - - - 3,921,788.17 -
Co., Ltd.
Shenzhen Konda E-display
- - - 82,930,520.62 -
Co., Ltd.
Chongqing Yuanlv Benpao
- - - - 33,459,820.85 -
Real Estate Co., Ltd.
Shenzhen Kangxin Property
- - - - - -
Co., Ltd.
Shenzhen Kangpeng Digital
- - - - 5,702,518.20 -
Technology Co., Ltd.
Yantai Kangtang Construction
- - - - 17,740.49 -
Development Co., Ltd.
238
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Dongguan Kangzhihui
- - - - 23,528,224.46 -
Electronics Co., Ltd.
Sichuan Huayi Jiakang
- - - - 339,893.32 -
Technology Co., Ltd.
Sichuan Aimijiakang
- - - - 2,000,138.36 -
Technology Co., Ltd.
Beijing Konka Jingyuan
- - - - 766,290.97 -
Technology Co., Ltd.
Chongqing Liangshan
Enterprise Management Co., - - - - 53,673.48 -
Ltd.
Shenzhen Kangene Technology
Innovation Development Co., - - - - 907,025.65 -
Ltd.
Shandong Kangfei Intelligent
- - - - 1,478,689.46 -
Electrical Appliances Co., Ltd.
Henan Kangfei Intelligent
- - - 1,832,647.54 -
Electrical Appliances Co., Ltd.
Dalian Xinguan Technology
- - - - 47,509,494.92 -
Co., Ltd.
Guangdong Kangyuan
- - - - 9,214,309.08 -
Semiconductor Co., Ltd.
Chongqing Kangyiqing - - - - 795,085.13 -
239
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Cash bonus or Ending balance of
Investee Other Withdrawal of Ending balance impairment
profits
equity impairment Others provision
announced to
changes provision
issue
Technology Co., Ltd.
Shenzhen Kangying
Semiconductor Technology - - - - 11,416,062.86 -
Co., Ltd.
KK Smartech Limited - - - - 1,441,263.59 -
Shenzhen Konka Electrical
1.00 10,732,484.69
Appliances Co., Ltd.
Total 7,546,052.90 266,531,254.30 -347,837,366.10 5,902,588,939.51 344,615,373.22
Note: Other changes in the year were primarily driven by the disposal of part of the equity interests held in Shandong Econ Technology Co., Ltd. and Shenzhen E2info Network Technology Co.,
Ltd.
14.Investment in Other Equity Instruments
(1) Investment in Other Equity Instruments
Item Ending balance Opening balance
Shenzhen Tianyilian Science & Technology Co., Ltd. - -
Shenzhen Adopt Network Co., Ltd. - -
AVO 5,901,121.80 5,901,121.80
Shaoyang Haishang Ecological Agricultural Technology Co., Ltd. - 1,501,956.00
Feihong Electronics Co., Ltd. - -
ZAEFI - -
Shenzhen Chuangce Investment Development Co., Ltd. - -
240
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance Opening balance
Shanlian Information Technology Engineering Center 1,860,809.20 1,860,809.20
Shenzhen CIU Science & Technology Co., Ltd. 953,000.00 953,000.00
Shenzhen Digital TV National Engineering Laboratory Co., Ltd. 7,726,405.16 7,726,405.16
Shanghai National Engineering Research Center of Digital TV Co., Ltd. 2,400,000.00 2,400,000.00
Bohu UHD 5,000,001.00 5,000,001.00
Total 23,841,337.16 25,343,293.16
(2) Investment in Non-trading Equity Instruments in this Year
Dividen Acc
Amount of other Reason for other
d umu Reason for assigning to
comprehensive comprehensive
income lativ Accumulative measure in fair value of which
Item income income
recogni e losses changes included other
transferred to transferred to
zed this gain comprehensive income
retained earnings retained earnings
year s
Shenzhen Tianyilian Science & Long-term holding based on
- - 4,800,000.00 -
Technology Co., Ltd. strategic purpose
Long-term holding based on
Shenzhen Adopt Network Co., Ltd. - - 5,750,000.00 -
strategic purpose
Long-term holding based on
AVO - - 98,878.20 -
strategic purpose
Long-term holding based on
Feihong Electronics Co., Ltd. - - 1,300,000.00 -
strategic purpose
Long-term holding based on
ZAEFI - - 100,000.00 -
strategic purpose
Shenzhen Chuangce Investment Long-term holding based on
- - 485,000.00 -
Development Co., Ltd. strategic purpose
241
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Dividen Acc
Amount of other Reason for other
d umu Reason for assigning to
comprehensive comprehensive
income lativ Accumulative measure in fair value of which
Item income income
recogni e losses changes included other
transferred to transferred to
zed this gain comprehensive income
retained earnings retained earnings
year s
Shanlian Information Technology Long-term holding based on
- - 3,139,190.80 -
Engineering Center strategic purpose
Shenzhen CIU Science & Technology Long-term holding based on
- - 200,000.00 -
Co., Ltd. strategic purpose
Shenzhen Digital TV National Long-term holding based on
- - 1,273,594.84 -
Engineering Laboratory Co., Ltd. strategic purpose
Shanghai National Engineering
Long-term holding based on
Research Center of Digital TV Co., - - - -
strategic purpose
Ltd.
Long-term holding based on
Bohu UHD - - - -
strategic purpose
Total 17,146,663.84
242
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
15.Other Non-current Financial Assets
Item Ending balance Opening balance
China Asset Management-Jiayi Overseas Designated
200,326,093.02 203,000,000.00
Plan
Hunan Wanrong Technology Co., Ltd. 47,230,000.00
Yibin OCT Sanjiang Properties Co., Ltd. 200,000,000.00 200,000,000.00
Yili Ecological Restoration Co., Ltd. 90,000,000.00 90,000,000.00
Kunshan Xinjia Emerging Industry Equity Investment
88,186,078.16 13,028,268.90
Fund Partnership (Limited Partnership)
Shenzhen Kanghong Dongsheng Investment
17,754,800.00
Partnership (Limited Partnership)
Tongxiang Wuzhen Jiayu Digital Economy Industry
118,266,889.53 40,000,000.00
Equity Investment Partnership (Limited Partnership)
Yibin Kanghui Electronic Information Industry Equity
116,086,430.82 4,000,000.00
Investment Partnership (Limited Partnership)
Chuzhou Jiachen Information Technology Consulting
52,200,130.13 49,200,000.00
Service Partnership (Limited Partnership)
Yancheng Kangyan Information Industry Investment
225,680,330.93 1,050,000.00
Partnership (Limited Partnership)
Chongqing Kangxin Equity Investment Fund Limited
100,882,805.61
Partnership (Limited Partnership)
Shenzhen Kanghuijia Technology Co., Ltd. 9,273.31
Subtotal of equity investments 1,191,638,031.51 665,263,068.90
Chuzhou Huike Smart Household Appliances Industry
890,768,440.22 1,049,891,727.86
Investment Partnership (Limited Partnership)
Ningbo Yuanqing No. 9 Investment Partnership 134,671,492.89 98,000,000.00
Shenzhen Beihu Technology Partnership (Limited
58,000,000.00 65,000,000.00
Partnership)
Henan Chuangxin Enterprise Management Center
18,283,639.06
(Limited Partnership)
Subtotal of debt investments 1,101,723,572.17 1,212,891,727.86
Total 2,293,361,603.68 1,878,154,796.76
16.Investment Properties
(1) Investment Properties Measured at Cost
Houses,
Item buildings and Total
lands
I. Original carrying value
243
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
1. Opening balance 600,562,678.71 600,562,678.71
2. Increased amount this year 332,797,684.89 332,797,684.89
(1) Outsourcing
(2) Fixed assets\construction in 332,797,684.89 332,797,684.89
progress\transfer of intangible assets
3. Decreased amount this year 61,787,729.96 61,787,729.96
(1) Disposal 54,616.68 54,616.68
(2) Other transfer 61,733,113.28 61,733,113.28
4. Ending balance 871,572,633.64 871,572,633.64
II. Accumulative depreciation and
accumulative amortization
1. Opening balance 61,977,010.42 61,977,010.42
2. Increased amount this year 33,070,561.68 33,070,561.68
(1) Withdrawal or amortization 33,070,561.68 33,070,561.68
3. Decreased amount this year
(1) Disposal
(2) Other transfer
4. Ending balance 95,047,572.10 95,047,572.10
III. Impairment provision
1. Opening balance
2. Increased amount this year
(1) Withdrawal
3. Decreased amount this year
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 776,525,061.54 776,525,061.54
2. Opening carrying value 538,585,668.29 538,585,668.29
Note: Increased investment properties during the Reporting Period were mainly the
completion of the standard electronic product plants in Sunning and the leasing of Konka
R&D Building and Konka Guangming Phase I.
(2) Investment Properties Measured at Fair Value
The Company had no investment properties measured at fair value.
244
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(3) Investment Properties in the Process of Title Certificate Handling
Item Carrying value Reason
Konka Standard Electronic Settlement of the project
Product Plants Project in is underway, and the
270,003,656.74
Sunning certificate can be handled
only after the settlement
Total 270,003,656.74
245
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
17.Fixed Assets
Item Ending carrying value Opening carrying value
Fixed Assets 4,010,295,277.14 3,178,642,017.84
Fixed assets pending for disposal
Total 4,010,295,277.14 3,178,642,017.84
17.1 Fixed Assets
(1) List of Fixed Assets
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
I. Original carrying
value
1. Opening balance 1,885,131,717.55 2,691,194,912.55 206,926,929.73 64,942,921.83 298,050,533.07 5,146,247,014.73
2. Increased amount of 747,463,581.71 598,987,872.48 54,971,154.22 7,383,197.28 83,569,190.22 1,492,374,995.91
the period
(1) Purchase 23,176,329.89 202,511,422.79 17,132,620.17 4,817,230.38 41,483,391.42 289,120,994.65
(2) Transfer from 687,626,571.25 366,111,215.51 3,083,729.72 3,529,543.51 1,060,351,059.99
construction in
progress
(3) Increase through
consolidation
(4) Other transfer-in 36,660,680.57 30,365,234.18 34,754,804.33 2,565,966.90 38,556,255.29 142,902,941.27
3. Decreased amount of 103,189,725.08 323,728,378.86 21,543,297.01 13,003,569.20 30,533,419.44 491,998,389.59
the period
246
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
(1) Disposal or scrap 5,231,055.93 45,353,981.19 10,565,683.61 5,898,772.81 13,804,445.58 80,853,939.12
(2) Decrease for loss of 139,602.28 44,036,284.05 10,910,647.21 6,833,720.27 16,132,664.05 78,052,917.86
controlling right
(3) Other decreases 97,819,066.87 234,338,113.62 66,966.19 271,076.12 596,309.81 333,091,532.61
4. Ending balance 2,529,405,574.18 2,966,454,406.17 240,354,786.94 59,322,549.91 351,086,303.85 6,146,623,621.05
II. Accumulative
depreciation
1. Opening balance 501,722,343.90 1,044,306,408.80 148,018,198.44 43,570,055.60 160,664,350.97 1,898,281,357.71
2. Increased amount of 107,232,513.69 241,792,461.06 23,450,081.32 7,341,113.50 66,792,412.72 446,608,582.29
the period
(1) Withdrawal 75,186,469.65 217,860,811.10 20,186,053.93 5,709,490.07 37,504,367.32 356,447,192.07
(2) Increase through
consolidation
(3) Other increase 32,046,044.04 23,931,649.96 3,264,027.39 1,631,623.43 29,288,045.40 90,161,390.22
3. Decreased amount of 14,966,851.72 203,053,799.11 14,146,191.26 10,317,892.91 16,570,436.96 259,055,171.96
the period
(1) Disposal or scrap 2,460,730.60 33,390,052.55 8,124,151.19 4,694,647.90 12,470,414.81 61,139,997.05
(2) Decrease for loss of 16,119.17 6,304,330.72 5,991,049.92 5,379,276.50 3,726,629.35 21,417,405.66
controlling right
(3) Other decreasess 12,490,001.95 163,359,415.84 30,990.15 243,968.51 373,392.80 176,497,769.25
4. Ending balance 593,988,005.87 1,083,045,070.75 157,322,088.50 40,593,276.19 210,886,326.73 2,085,834,768.04
III. Impairment
provision
1. Opening balance 1,247,805.91 64,440,684.26 1,221,230.02 820,215.24 1,593,703.75 69,323,639.18
247
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
2. Increased amount of 554.90 3,769,566.23 3,770,121.13
the period
(1) Withdrawal 554.90 3,769,566.23 3,770,121.13
3. Decreased amount of 21,730,263.78 582,833.08 287,087.58 22,600,184.44
the period
(1) Disposal or scrap 154,669.23 582,833.08 287,087.58 1,024,589.89
(2) Other decrease 21,575,594.55 21,575,594.55
4. Ending balance 1,247,805.91 42,710,420.48 638,396.94 820,770.14 5,076,182.40 50,493,575.87
IV. Carrying value
1. Ending carrying 1,934,169,762.40 1,840,698,914.94 82,394,301.50 17,908,503.58 135,123,794.72 4,010,295,277.14
value
2. Opening carrying 1,382,161,567.74 1,582,447,819.49 57,687,501.27 20,552,650.99 135,792,478.35 3,178,642,017.84
value
(2) List of Temporarily Idle Fixed Assets
Item Original carrying value Accumulated depreciation Impairment provision Carrying value
Machinery equipment 17,041,149.12 5,223,857.55 1,865,587.15 9,951,704.42
Electronic equipment 5,671,716.15 4,775,819.96 895,896.19
Transportation equipment 1,178,824.54 625,453.85 553,370.69
Houses and buildings 449,070.15 212,185.58 236,884.57
Other machinery 823,781.87 597,392.41 26,675.22 199,714.24
Total 25,164,541.83 11,434,709.35 1,892,262.37 11,837,570.11
248
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(3) Fixed Assets Leased out from Operation Lease
Item Ending carrying value
Electronic equipment 1,311,285.57
Machinery equipment 29,247,353.48
Other machinery 853,544.46
Transportation equipment 124,896.85
Total 31,537,080.36
(4) Details of Fixed Assets Failed to Accomplish Certification of Property
Impairme
Original carrying Accumulated
Item nt Net carrying value Reason
value depreciation
provision
Ankang's plants 601,722,965.12 5,987,778.99 595,735,186.13 Being handled
Bokang's phase II plants on the
second and third floors for 33,584,624.73 1,007,538.74 32,577,085.99 Being handled
printed boards
Jingyuan Building property 20,018,497.00 9,995,767.10 10,022,729.90 Being handled
Yikang Building property 76,610,752.33 38,628,558.56 37,982,193.77 Being handled
Total 731,936,839.18 55,619,643.39 676,317,195.79
(5) Fixed Assets with Restricted Ownership or Use Right
Item Ending carrying value Reason for restriction
Housing and buildings of Anhui Tongchuang 150,091,063.96 Mortgaged for billing
Machinery equipment of Jiangxi Konka 67,373,098.34 Financing lease mortgage
249
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Ending carrying value Reason for restriction
Machinery equipment of Xinfeng Microcrystalline 116,453,348.49 Finance lease mortgage
Housing and buildings of Frestec Refrigeration 90,148,714.56 Mortgage loan
Buildings of Konka Group 78,862,102.73 Mortgage loan
Housing and buildings of XingDa HongYe 37,524,443.44 Mortgage loan
Anhui Konka's buildings 627,976,948.44 Mortgage loan
Machinery equipment of Xingda Hongye 20,620,198.66 Finance lease mortgage
Machinery equipment of Boluo Konka Precision 26,795,319.00 Finance lease mortgage
Plants of Boluo Konka 1,201,869.53 Mortgage loan
Housing and buildings of Jiangxi Konka 3,264,900.79 Original shareholders’ guarantee mortgage
Smart machinery equipment and other equipment Mortgage loan
40,781,730.40
of Jiangsu Konka
Total 1,261,093,738.34
18.Construction in progress
Item Ending balance Opening balance
Construction in progress 1,490,777,831.39 9,236,643,931.68
Total 1,490,777,831.39 9,236,643,931.68
18.1.Construction in Progress
(1) List of Construction in Progress
Ending balance Opening balance
Item
Carrying balance Impairment Carrying value Carrying balance Impairment Carrying value
250
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
provision provision
Infrastructure Project of
Chongqing Konka
Semiconductor
319,259,613.46 319,259,613.46 63,294,064.44 63,294,064.44
Optoelectronics
Research Institute (Part
I and Part II)
Guangming Project 282,501,390.70 282,501,390.70 122,764,816.91 122,764,816.91
Jiangxi
High-permeability 246,576,748.57 246,576,748.57 240,481,715.66 240,481,715.66
Crystalization Kiln
Dongguan Konka New
163,155,903.72 163,155,903.72 21,895,757.72 21,895,757.72
Industrial Park
Construction of Suining
Electronic Industrial 112,187,404.92 112,187,404.92 185,205,457.46 185,205,457.46
Park Workshops
R&D equipment
construction project of
Chongqing
26,273,554.58 26,273,554.58 129,766,743.81 129,766,743.81
Optoelectronic
Technology Research
Institute
Ankang Smart Plant 3,671,474.97 3,671,474.97 549,848,298.86 549,848,298.86
Other projects 337,479,326.68 327,586.21 337,151,740.47 7,923,387,076.82 7,923,387,076.82
Total 1,491,105,417.60 327,586.21 1,490,777,831.39 9,236,643,931.68 9,236,643,931.68
251
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(2) Changes of Significant Construction in Progress this Year
Decrease in this year
Transferred to
Name of item Opening balance Increase in this year long-term assets Other decrease Ending balance
Infrastructure Project of
Chongqing Konka
Semiconductor 63,294,064.44 255,965,549.02 319,259,613.46
Optoelectronics Research
Institute (Part I and Part II)
Guangming Project 122,764,816.91 160,025,587.72 289,013.93 282,501,390.70
Jiangxi High-permeability
240,481,715.66 6,095,032.91 246,576,748.57
Crystalization Kiln
Dongguan Konka New
21,895,757.72 141,260,146.00 163,155,903.72
Industrial Park
Construction of Suining
Electronic Industrial Park 185,205,457.46 133,397,931.34 206,415,983.88 112,187,404.92
Workshops
R&D equipment
construction project of
Chongqing Optoelectronic 129,766,743.81 56,490,559.99 155,425,985.52 4,557,763.70 26,273,554.58
Technology Research
Institute
Ankang Smart Plant 549,848,298.86 88,883,295.73 635,060,119.62 3,671,474.97
Total 1,313,256,854.86 842,118,102.71 996,902,089.02 4,846,777.63 1,153,626,090.92
Note: Changes in important construction in progress this year. The balance of the construction in progress of Shandong Econ project at the beginning of the
252
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
period was RMB7,632 million, while the balance at the end of the year was RMB0. It was because that on November 25, 2021, the Company transferred
11.70 % of the equity of Shandong Econ to Shandong Expressway Co., Ltd. After the transfer, the shareholding ratio decreased and the equity was no longer
included in the scope of consolidation.
(continued)
Proportion ToB Of which: the
estimated of the Accumulated amount of the Capitalization
project amount of capitalized rate of the
Estimated number accumulative interest interests of the interests of the
Name of item (RMB100 million) input (%) Schedule (%) capitalization period period (%) Source of fund
Infrastructure Project 6.58 48.51 48.51 - - - Equity fund
of Chongqing Konka
Semiconductor
Optoelectronics
Research Institute
(Part I and Part II)
Guangming Project 5.33 53.15 53.15 9,283,910.47 7,965,313.33 7.90 Self-owned fund
and project
financing
Jiangxi 3.40 72.52 72.52 32,249,994.16 7.00 Finance leases
High-permeability Own capital and
Crystalization Kiln bank
Dongguan Konka 3.90 36.56 36.56 5,772,524.22 1,066,968.64 4.59 Self-owned
New Industrial Park fund and bank
financing
Construction of 7.04 45.60 45.60 Equity fund
Suining Electronic
Industrial Park
253
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Proportion ToB Of which: the
estimated of the Accumulated amount of the Capitalization
project amount of capitalized rate of the
Estimated number accumulative interest interests of the interests of the
Name of item (RMB100 million) input (%) Schedule (%) capitalization period period (%) Source of fund
Workshops
R&D equipment 7.08 84.80 84.80 Equity fund
construction project
of Chongqing
Optoelectronic
Technology Research
Institute
Ankang Smart Plant Self-owned fund
9.3 74.63 74.63 7,257,246.10 7,257,246.10 4.85 and bank
financing
Total 54,563,674.95 16,289,528.07
(3) Impairment Provision for Construction in Progress Withdrawn this Year
Item Amount withdrawn this year Reason for withdrawal
Phase II electroplating line AGV logistics line 327,586.21 Conditions for service unmet
Total 327,586.21
254
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
19. Right-of-use assets
Houses and Electronic Transportation
Item Total
buildings equipment equipment
I. Original carrying
value
1. Opening balance 103,390,364.78 - 832,266.36 104,222,631.14
2. Increased
16,332,102.61 310,725.66 - 16,642,828.27
amount this year
(1) Rent 16,332,102.61 310,725.66 - 16,642,828.27
(2) Others - - - -
3. Decreased
5,324,917.92 - - 5,324,917.92
amount this year
(1) Decrease for
loss of controlling 5,221,750.95 - - 5,221,750.95
right
(2) Others 103,166.97 - - 103,166.97
4. Ending balance 114,397,549.47 310,725.66 832,266.36 115,540,541.49
II. Accumulative
-
depreciation
1. Opening balance - - - -
2. Increased
45,951,718.36 31,072.56 564,524.28 46,547,315.20
amount this year
(1) Withdrawal 45,951,718.36 31,072.56 564,524.28 46,547,315.20
(2) Others - - - -
3. Decreased
2,217,189.08 - - 2,217,189.08
amount this year
(1) Decrease for
loss of controlling 2,217,189.08 - - 2,217,189.08
right
4. Ending balance 43,734,529.28 31,072.56 564,524.28 44,330,126.12
III. Impairment
provision
1. Opening balance - - - -
2. Increased
- - - -
amount this year
(1) Withdrawal - - - -
3. Decreased
- - - -
amount this year
(1) Disposal - - - -
4. Ending balance - - - -
IV. Carrying value - - - -
255
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
1. Ending carrying
70,663,020.19 279,653.10 267,742.08 71,210,415.37
value
2. Opening
103,390,364.78 - 832,266.36 104,222,631.14
carrying value
256
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
20. Intangible Assets
(1) List of Intangible Assets
Intellectual property
Item Land use right Right to use Total
Trademark Patent and
Franchise rights software and Subtotal
right know-how
others
I. Original
carrying
value
1. Opening
1,046,826,764.13 75,487,617.43 102,532,417.78 106,571,344.10 118,345,808.42 402,937,187.73 1,449,763,951.86
balance
2. Increased
amount of 54,110,351.53 122,053.98 100,684,900.00 586,375,648.77 27,793,440.08 714,976,042.83 769,086,394.36
the period
(1) Purchase 54,110,351.53 122,053.98 12,000,000.00 12,129,561.34 24,251,615.32 78,361,966.85
(2) Transfer
from
586,375,648.77 920,509.67 587,296,158.44 587,296,158.44
construction
in progress
(3) Transfer
from R&D
(4) Increase
through
consolidatio
n
257
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Item Land use right Right to use Total
Trademark Patent and
Franchise rights software and Subtotal
right know-how
others
(5) Other
88,684,900.00 14,743,369.07 103,428,269.07 103,428,269.07
reasons
3. Decreased
amount of 173,058,367.95 40,000,000.00 692,946,992.87 17,285,309.55 750,232,302.42 923,290,670.37
the period
(1) Disposal
(2) Decrease
for loss of
38,134,000.00 40,000,000.00 692,946,992.87 17,285,309.55 750,232,302.42 788,366,302.42
controlling
right
(3) Decrease
for other 134,924,367.95 134,924,367.95
reasons
4. Ending
927,878,747.71 75,609,671.41 163,217,317.78 128,853,938.95 367,680,928.14 1,295,559,675.85
balance
II.
Accumulated
amortization
1. Opening
98,643,099.35 5,272,452.95 82,831,515.87 15,547,087.50 55,377,712.07 159,028,768.39 257,671,867.74
balance
2. Increased
amount of 17,062,920.64 12,726,395.95 42,138,508.20 11,897,945.28 17,829,964.27 84,592,813.70 101,655,734.34
the period
258
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Item Land use right Right to use Total
Trademark Patent and
Franchise rights software and Subtotal
right know-how
others
(1)
17,062,920.64 12,726,395.95 24,273,715.99 11,897,945.28 14,464,165.99 63,362,223.21 80,425,143.85
Withdrawal
(2) Other
17,864,792.21 3,365,798.28 21,230,590.49 21,230,590.49
increases
3. Decreased
amount of 32,156,857.88 16,857,142.87 27,445,032.78 4,310,798.11 48,612,973.76 80,769,831.64
the period
(1) Disposal
(2) Decrease
for loss of
770,116.66 16,857,142.87 27,445,032.78 4,310,798.11 48,612,973.76 49,383,090.42
controlling
right
(3) Decrease
for other 31,386,741.22 31,386,741.22
reasons
4. Ending
83,549,162.11 17,998,848.90 108,112,881.20 68,896,878.23 195,008,608.33 278,557,770.44
balance
III.
Impairment
provision
1. Opening
2,901,082.61 2,901,082.61 2,901,082.61
balance
2. Increased 38,804,906.72 38,804,906.72 38,804,906.72
259
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Item Land use right Right to use Total
Trademark Patent and
Franchise rights software and Subtotal
right know-how
others
amount of
the period
(1)
38,804,906.72 38,804,906.72 38,804,906.72
Withdrawal
(2) Business
Combination
Increase
3. Decreased
amount of
the period
(1) Disposal
(2) Decrease
for loss of
controlling
right
4. Ending
41,705,989.33 41,705,989.33 41,705,989.33
balance
IV. Carrying
value
1. Ending
carrying 844,329,585.60 57,610,822.51 13,398,447.25 59,957,060.72 130,966,330.48 975,295,916.08
value
2. Opening 948,183,664.78 70,215,164.48 16,799,819.30 91,024,256.60 62,968,096.35 241,007,336.73 1,189,191,001.51
260
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Item Land use right Right to use Total
Trademark Patent and
Franchise rights software and Subtotal
right know-how
others
carrying
value
261
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(2) Land Use Right with Certificate of Title Uncompleted
Item Carrying value Reason
Land use right of the subsidiary Nano-Grystallized
5,126,373.01 Being handled
Glass
262
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(3) Significant Intangible Assets
Remaining amortization period
Item Ending carrying value
(year)
Land usage right of Fenggang
Konka Intelligent Industrial 193,971,110.67 47.67
Park
Land of Frestec Smart Home
94,129,682.34 48.75
Industrial Park
Land usage right of Frestec
67,739,055.16 34.75
Refrigeration
Land use right of Konka
64,536,160.10 47.50
Huanjia
Land use right of the
semiconductor & 60,519,468.93 47.67
optoelectronics industrial park
(4) Intangible Assets with Restricted Ownership or Using Right
Item Ending carrying value Reason for restriction
Land use right of Dongguan 193,971,110.67 Mortgage loan
Konka
Land use right of Anhui Konka 56,274,036.00 Mortgage loan
Land usage right of Frestec 67,739,055.16 Mortgage loan
Refrigeration
Land use right of Anhui 18,432,734.53 Mortgaged for billing
Tongchuang
Land use right of Jiangsu 14,688,712.51 Mortgage loan
Konka
Land usage right of XingDa 14,049,303.26 Mortgage loan
HongYe
Land usage right of Jiangxi 10,262,535.72 Original shareholder guarantee
Konka mortgage
Land use right of Konka 5,101,343.95 Mortgage loan
Guangming
Total 380,518,831.80
21. Development Expenses
263
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Increase in this year Decrease in this year
Transf
Ope Recog
erred
ning nized
Item Internal into Ending balance
bala Oth as Other
development the
nce ers intangi s
costs curren
ble
t profit
assets
or loss
Performa
nce
improvem
ent
13,635,816.63 13,635,816.63
project of
MINI &
MICRO
LED
Self-devel
opment of 3,234,494.07 3,234,494.07
chips
Total 16,870,310.70 16,870,310.70
22. Goodwill
(1) Original Carrying Value of Goodwill
Increase in
Decrease in this year
this year
Name of O
O
the Opening balance t Ending balance
t
investees Provisio h
h Disposal
n e
e
r
rs
s
Econ
Technolog 467,825,151.34 - - 467,825,151.34 - -
y
Jiangxi
340,111,933.01 - - - - 340,111,933.01
Konka
XingDa
44,156,682.25 - - - - 44,156,682.25
HongYe
Total 852,093,766.60 - - 467,825,151.34 - 384,268,615.26
(2) Provisions for Goodwill Impairment
Name of the Opening Decrease in
Increase in this year Ending balance
investees balance this year
264
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Formed due to
Oth Disp Oth
business
ers osal ers
combination
Econ Technology
Jiangxi Konka 154,337,946.29 185,773,986.72 340,111,933.01
XingDa HongYe 21,959,947.14 21,959,947.14
Total 176,297,893.43 185,773,986.72 362,071,880.15
(3) Information on the Assets Groups or Combination of Assets Groups which Goodwill
Belongs to
The Company engaged an assessment institution to assess the recoverable amount of the
asset groups or combination of asset groups in which goodwill belongs to. Each asset group or
combination of asset groups is the asset group related to goodwill of all operational tangible
assets and recognizable intangible assets (excluding operating capital and non-operating assets) of
principal business as reflected in the balance sheet of the corresponding subsidiary. The
recognition of asset groups at the time of goodwill impairment test shall be consistent with the
asset group or combination of asset groups determined at the time of the goodwill impairment test
on the purchase date and in previous years.
(4) The key assumptions and basis for calculating the recoverable amount of asset groups
are as follows:
a) It is assumed that the assessed company is in continuous operation and had no significant
changes from the current situation in the key aspects relating to production and operation,
including business scope, sales mode and channels and the management;
b) It is assumed that there are no significant changes in the social and economic
environments of the assessed company, and there are no significant changes from existing ones in
relevant laws, regulations or policies of the country or region where the company is located;
c) It is assumed that the assessed company keeps improving and optimizing its business
scope, business practice and management model on the basis of maintaining consistency, and
makes adjustments and innovations at appropriate times with the development of economy;
d) It is assumed that all products supplied by the assessed company meet market demands
and the objectives and measures determined are realized as scheduled and with expected profits;
e) It is assumed that there are no significant changes in the interest rate, exchange rate, tax
base and tax rate within the normal range stipulated by the country.
f) Recoverable amount of asset groups and combination of asset groups is based on the
265
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
five-year budget approved by the Management, and is calculated with the cash flow forecasting
method.
(5) Impairment of goodwill of the Company's asset groups is detailed as follows:
The recoverable amount of XingDa HongYe was determined by the present value of the
forecasted future cash flow. The future cash flow was determined at the discount rate of
13.15% based on the financial budget from 2022 to 2026 approved by the Management. The
cash flow of XingDa HongYe for over five years was calculated on the basis of a growth rate
of 0%. The Company engaged Shanghai Dongzhou Orient Appraisal Co., Ltd. to assess the
XingDa HongYe asset group (inclusive of goodwill) by income approach. With the present
value of the forecasted future cash flow of the assets in this asset group as the recoverable
amount, the Company issued the Asset Assessment Report on the Recoverable Value of the
Asset Group involved in the Impairment Test of Goodwill of GuangDong XingDa HongYe
Electronic Co., Ltd. formed by the Konka Group Co., Ltd. through the Proposed Merger
(D.ZH.P.B.Z. [2022] No. 0442) on March 27, 2022 with December 31, 2021 as the valuation
base date. The present value of XingDa HongYe's asset group was RMB360 million on the
benchmark date of the assessment, the carrying value of the asset group after adjustment at
fair value (including the overall goodwill) was RMB292,129,600, and the carrying value of
goodwill (including minority shareholders) was RMB43,523,000. Therefore, XingDa
HongYe had no impairment of goodwill in the year as assessed in the goodwill impairment
test.
With respect to the recoverable amount of Jiangxi Konka, the recoverable amount of the
long-term asset group was measured at the fair value less the present value of the disposal
expenses. Beijing Zhongtianhe Assets Appraisal Co., Ltd. evaluated Jiangxi Konka by cost
approach, and issued on March 15, 2022 the Asset Evaluation Report on the Recoverable
Amount of the Long-term Asset Group in the Asset Impairment Test Carried out by Jiangxi
Konka New Material Technology Co., Ltd. for Financial Reporting Purposes (ZTH [2022]
No. 90038) with December 31, 2021 as the valuation base day. The aforesaid recoverable
amount was RMB1,345.5283 million, with the carrying value of the asset group comprising
goodwill being RMB1,723.9344 million. The recoverable amount is lower than the carrying
value of the asset group comprising goodwill. Therefore, the provision for impairment of
goodwill is RMB 185.7740 million this year. As of the reporting date, Jiangxi Konka has
accrued approximately RMB 340.1119 million in goodwill impairment.24. Long-term
Unamortized Expenses
266
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
It Other
Opening Increase in this Amortization
e year decreases in Ending balance
balance in this year
m this year
D
ec
or
ati 92,922,237.45 175,078,901.99 31,046,593.60 382,776.25 236,571,769.59
on
fe
e
S
ho
pp
e
24,678,629.46 12,870,547.30 16,791,971.73 47,110.62 20,710,094.41
ex
pe
ns
e
Ot
he 35,597,695.91 73,409,728.28 33,443,016.82 35,348,887.98 40,215,519.39
rs
T
ot 153,198,562.82 261,359,177.57 81,281,582.15 35,778,774.85 297,497,383.39
al
24. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets without Offset
Ending balance Opening balance
Deductible Deferred Deductible Deferred income
Item
temporary income tax temporary tax
difference Assets difference Assets
Deductible
losses 1,662,487,029.88 294,364,103.95 3,454,342,497.93 765,781,935.91
Provision
for 1,495,008,640.79 341,517,549.45 1,672,345,584.63 355,173,623.87
267
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Deductible Deferred Deductible Deferred income
Item
temporary income tax temporary tax
difference Assets difference Assets
impairment
of assets
Deferred
revenue 54,518,127.50 13,573,281.87 302,984,312.52 75,408,820.37
Accrued
expenses 211,674,351.84 47,600,301.64 206,844,865.32 40,844,897.61
Internal
unrealized 34,369,797.29 8,592,449.32 37,257,399.14 9,068,649.87
profit
Others 95,608,084.94 19,668,038.87 90,902,865.84 19,638,509.76
Total 3,553,666,032.24 725,315,725.10 5,764,677,525.38 1,265,916,437.39
(2) Lists of Deferred Income Tax Liabilities without Offset
Ending balance Opening balance
Taxable Deferred Taxable Deferred
Item
temporary income tax temporary income tax
difference LIABILITIES difference LIABILITIES
Estimated added
value of assets not
under the same 225,287,542.61 46,262,753.72 303,689,567.68 57,097,842.23
control
Prepaid interest 51,003,370.16 12,750,842.54 48,578,683.63 11,840,140.77
Accelerated
depreciation of 6,990,324.63 1,596,656.16 4,443,598.64 959,974.66
fixed assets
Others 65,137,318.19 16,284,329.55 27,585,930.42 5,921,274.27
Total 348,418,555.59 76,894,581.97 384,297,780.37 75,819,231.93
(3) List of Unrecognized Deferred Income Tax Assets
Item Ending balance Remark
Deductible losses 2,210,991,564.05 1,526,406,964.50
Deductible temporary
2,024,354,413.51 766,691,485.59
difference
Total 4,235,345,977.56 2,293,098,450.09
268
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(4) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the
Following Years
Year Ending amount Remarks
2022 338,228,367.62
2023 150,048,845.66
2024 192,104,714.11
2025 503,798,833.87
2026 and later years 1,026,810,802.79
Total 2,210,991,564.05 --
25. Other Non-current Assets
Ending balance
Item Impairment
Carrying balance Carrying value
provision
Prepayment for
2,584,957,360.50 - 2,584,957,360.50
land-purchase
Prepayment for
construction,
63,573,129.62 63,573,129.62
equipment and other
long-term assets
Entrusted loans
Construction of
government projects
Total 2,648,530,490.12 - 2,648,530,490.12
(continued)
Opening balance
Item Impairment
Carrying balance Carrying value
provision
Prepayment for
1,538,728,032.15 - 1,538,728,032.15
land-purchase
Prepayment for
construction,
247,719,684.59 247,719,684.59
equipment and other
long-term assets
Entrusted loans 10,867,888.84 10,867,888.84
Construction of
23,463,565.16 23,463,565.16
government projects
Total 1,820,779,170.74 - 1,820,779,170.74
26. Short-term Borrowings
269
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(1) Category of Short-term Borrowings
Item Ending balance Opening balance Note
Credit loan 7,178,420,980.60 7,164,301,258.30
Guarantee
2,382,534,766.48 2,038,705,892.75 a)b)c)d)e)f)g)h)i)j)
loan
Mortgage
359,719,374.00 1,787,543,324.73 k)l)m)n)o)p)q)
loan
Total 9,920,675,121.08 10,990,550,475.78
a) The Company provides joint and several liability guarantee for the short-term borrowings
totaling RMB1,122,872,333.38 to its subsidiaries Anhui Konka, Sichuan Konka, Anhui
Tongchuang, Electronics Technology, Jiangxi Konka, Jiangxi High-permeability Substrate,
Xinfeng Microcrystalline and Liaoyang Kangshun.
b) The Company has obtained short-term borrowings amounting to RMB500,604,166.67
from Shenzhen Chegongmiao Sub-branch of China Everbright Bank Co., Ltd., for which the
Company's subsidiary Electronics Technology provides joint and several liability guarantee at the
maximum amount.
c) The Company has obtained short-term borrowings amounting to RMB437,806,437.32
from Shenzhen Branch of China Guangfa Bank Co., Ltd., for which the Company's parent
company OCT Group provides joint and several liability guarantee at the maximum amount.
d) The Company has obtained short-term borrowings amounting to USD8,329,961.88
(equivalent to RMB53,109,337.96) from Shenzhen Branch of China Guangfa Bank Co., Ltd., for
which the Company's parent company OCT Group provides joint and several liability guarantee
at the maximum amount.
e) The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting
to RMB3,950,000.00 from Shenzhen Technology Sub-branch of Bank of Hangzhou Co., Ltd., for
which Shenzhen SME Financing Guarantee Co., Ltd. and Shenzhen High-tech Investment and
Financing Guarantee Co., Ltd. both provide guarantee.
f) The Company's subsidiary Ningbo Khr Electric Appliance Co., Ltd. has obtained
short-term borrowings amounting to RMB10,000,000.00 from Cixi Branch of Bank of China
Limited, for which the Company and Korea Electric Group Co., Ltd. provide joint and several
liability guarantee at the proportion of 60% and 40% respectively.
270
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
g) The Company's subsidiary Ningbo Khr Electric Appliance Co., Ltd. has obtained
short-term borrowings amounting to RMB20,000,000.00 from Cixi Central District Sub-branch of
Bank of Ningbo Co., Ltd., for which the Company and Korea Electric Group Co., Ltd. provide
joint and several liability guarantee at a ratio of 3:2.
h) The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting
to USD6,232,034 (equivalent to RMB39,733,579.17) from Chuzhou Branch of Agricultural Bank
of China Co., Ltd., for which the Company provides joint and several liability guarantee.
i) The Company's subsidiary Hong Kong Konka has obtained short-term borrowings
amounting to USD15,000,000.00 (equivalent to RMB95,635,500.00) from Bank of China (Hong
Kong) Limited, for which the Company provides joint and several liability guarantee.
j) The Company's subsidiary Hong Kong Konka has obtained short-term borrowings
amounting to USD15,500,000.00 (equivalent to RMB98,823,411.98) from Shenzhen Branch of
China Zheshang Bank Co., Ltd., for which the Company provides joint and several liability
guarantee.
k) The Company's subsidiary XingDa HongYe has obtained short-term borrowings
amounting to RMB95,000,000.00 from Zhongshan Fusha Sub-branch of Zhongshan Rural
Commercial Bank, for which it provides land use rights of a carrying value of
RMB14,049,303.26 and buildings of a carrying value of RMB37,524,443.44 as mortgage and
certificates of time deposit of RMB19,800,000.00 as pledge and Hu Zehong provides joint and
several liability guarantee.
l) The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to
RMB159,600,000.00 from Chuzhou Branch of Bank of China Limited, for which it provides land
use rights of a carrying value of RMB37,463,521.33 and fixed assets of a carrying value of
RMB433,297,607.30 as mortgage.
m) The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting
to USD2,896,372.91 (equivalent to RMB18,466,404.76) from Chuzhou Branch of Bank of China
Limited, for which it provides land use rights of a carrying value of RMB37,463,521.33 and fixed
assets of RMB433,297,607.30 as mortgage.
n) The Company's subsidiary Anhui Electrical Appliance has obtained short-term borrowings
amounting to RMB37,500,000.00 from Hefei Branch of China ZheShang Bank, for which it
provides buildings of a carrying value of RMB90,148,714.56 and land use rights of a carrying
value of RMB67,739,055.16 of the Company's subsidiary Henan Frestec Refrigeration Appliance
271
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Co., Ltd. as mortgage and the 210 million equities in Henan Frestec Household Appliances Co.,
Ltd., 123,051,096 equities in Henan Frestec Refrigeration Appliance Co., Ltd. and 668,637,700
equities in Henan Frestec Electrical Appliances Co., Ltd. it holds as pledge.
o) The Company's subsidiary Jiangsu Konka Smart has obtained short-term borrowings
amounting to RMB40,000,000.00 from Changzhou Branch of China ZheShang Bank Co., Ltd.,
for which it provides buildings of a carrying value of RMB40,781,730.40 and land use rights of a
carrying value of RMB14,688,712.51 as mortgage.
p) The Company's subsidiary Boluo Precision has obtained short-term borrowings
amounting to RMB5,000,000.00 from Tangquan Sub-branch of Guangdong Boluo Rural
Commercial Bank Co., Ltd., for which it provides buildings of a carrying value of
RMB1,201,869.53 of Boluo Konka as mortgage.
q) The Company's subsidiary Yantai Kangjin has obtained short-term borrowings amounting
to RMB4,152,969.24 from Yantai Rural Commercial Bank Co., Ltd., for which it provides
investment properties of a carrying value of RMB10,670,357.55 of Yantai Konka Great Health
Industrial Park as mortgage.
(2) Outstanding Short-term Borrowings Overdue
There were no outstanding short-term borrowings overdue at the year-end.
27. Notes Payable
Category Ending balance Opening balance
Bank’s acceptance bill 729,653,866.95 1,159,251,569.31
Commercial
386,683,091.96 176,735,456.90
acceptance bill
Total 1,116,336,958.91 1,335,987,026.21
28. Accounts Payable
(1) List of Accounts Payable
Item Ending balance Opening balance
Within 1 year 3,479,614,154.99 8,134,924,659.58
1 to 2 years 187,662,627.95 1,279,766,515.39
2 to 3 years 85,964,325.66 87,184,184.40
272
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance Opening balance
Over 3 years 31,073,982.81 130,490,966.39
Total 3,784,315,091.41 9,632,366,325.76
Note: The significant decrease in the balance of accounts payable in the year was primarily
driven by the disposal of Shandong Econ Technology Co., Ltd.
29. Contract Liabilities
Item Ending balance Opening balance
Sales advances received 652,910,408.02 1,217,367,735.94
Total 652,910,408.02 1,217,367,735.94
30. Payroll Payable
(1) List of Payroll Payable
Item Opening Increase in this Decrease in this Ending balance
balance year year
List of
Short-term 473,200,796.84 1,821,439,673.98 1,885,248,534.65 409,391,936.17
Salary
Post-employmen
t benefit-defined
2,283,275.82 133,900,560.00 134,980,487.19 1,203,348.63
contribution
plans
Termination
1,132,171.79 6,182,836.44 7,163,208.23 151,800.00
benefits
Current portion
of other benefits
Total 476,616,244.45 1,961,523,070.42 2,027,392,230.07 410,747,084.80
(2) List of Short-term Salary
Item Opening balance Increase in this year Decrease in this year Ending balance
Salary, bonus, 458,065,525.46 1,631,836,996.09 1,690,046,740.69 399,855,780.86
273
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Opening balance Increase in this year Decrease in this year Ending balance
allowance, subsidy
Welfare for employees 1,003,285.92 77,648,725.75 77,699,810.03 952,201.64
Social security
4,887,689.95 55,854,127.73 59,485,513.48 1,256,304.20
expense
Of which: Medical
1,257,574.78 51,966,805.52 52,268,384.52 955,995.78
insurance premiums
Work-related
87,286.29 2,746,766.03 2,766,047.22 68,005.10
injury insurance
Maternity
3,542,828.88 1,140,556.18 4,451,081.74 232,303.32
insurance
Housing fund 1,494,931.38 38,129,693.69 39,486,899.04 137,726.03
Labor union budget
and employee 7,283,186.41 14,551,656.09 15,131,085.17 6,703,757.33
education budget
Short-term absence
with payment
Short-term profit
sharing plan
Others 466,177.72 3,418,474.63 3,398,486.24 486,166.11
Total 473,200,796.84 1,821,439,673.98 1,885,248,534.65 409,391,936.17
(3) List of Defined Contribution Plan
Item Opening Increase in this Decrease in this Ending balance
balance year year
Basic endowment
2,188,388.21 130,731,651.99 131,810,225.74 1,109,814.46
insurance
Unemployment
94,887.61 3,168,908.01 3,170,261.45 93,534.17
insurance
Annuity
Total 2,283,275.82 133,900,560.00 134,980,487.19 1,203,348.63
31. Tax and Fees Payables
274
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance Opening balance
Corporate income tax 168,026,929.08 264,749,734.19
VAT 59,692,464.80 186,891,111.62
Fund for disposing abandoned
30,077,111.00 19,157,745.00
appliances and electronic products
Urban maintenance and construction
3,696,423.98 10,206,690.62
tax
Education fees and local education
2,840,889.56 7,361,219.22
Surcharge
Stamp duty 6,255,372.18 6,041,179.34
Land use tax 8,812,080.36 5,095,730.68
Personal income tax 9,602,569.88 3,023,518.75
Property tax 4,287,226.80 2,209,076.63
Customs duty 1,962,596.87 2,008,914.61
Others 571,505.90 1,469,138.50
Total 295,825,170.41 508,214,059.16
32. Other Payables
Item Ending balance Opening balance
Interest payable 174,383,177.08 220,837,380.17
Other payables 1,613,794,571.51 1,770,718,506.93
Total 1,788,177,748.59 1,991,555,887.10
32.1 Interests Payable
Item Ending balance Opening balance
Interest on corporate bonds 171,218,888.92 180,268,944.49
Interest on long-term borrowings
with interest paid by installment and 17,162,676.76
principal paid at maturity
Interest payable on short-term
3,164,288.16 23,350,524.40
borrowings
Others 55,234.52
Total 174,383,177.08 220,837,380.17
32.2 Other Payables
(1) Listed by Nature of Account
275
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Nature Ending balance Opening balance
Expenses payable 755,393,561.40 626,909,820.31
Related party borrowing 313,104,212.26 344,520,800.92
Cash deposit and front 240,638,514.04 243,197,538.56
Intercourse funds 177,524,073.79 331,967,783.33
Equity transfer payment 67,482,796.96 157,682,796.96
Advance money 8,282,111.32 7,795,410.38
Others 51,369,301.74 58,644,356.47
Total 1,613,794,571.51 1,770,718,506.93
(2) Other Significant Payables Aging over One Year
Name of entity Unpaid/Un-carry-over
Ending balance
reason
Equity transfer money of Jiangxi Not meet the settlement
Konka 61,180,000.00 conditions
Total 61,180,000.00
33. Non-current liabilities due within one year
Item Ending balance Opening balance
Current portion of long-term
2,087,374,444.43 18,150,000.00
borrowings
Current portion of long-term
270,119,697.71 358,746,566.29
payables
Bonds payable due within 1 year 2,700,000,000.00
Lease liabilities due within 1 year 32,092,127.18 48,493,286.81
Total 5,089,586,269.32 425,389,853.10
34.Other Current Liabilities
Item Ending balance Opening balance
Accounts payable with trade
63,854,223.36 432,420,000.00
acceptance notes
Refunds payable 30,629,396.14 9,354,317.23
Tax to be charged off 15,258,568.74 -
Total 109,742,188.24 441,774,317.23
276
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
35. Long-term Borrowings
(1) Category of Long-term Borrowings
Item Ending balance Opening balance Note
Guarantee loan 3,185,072,777.76 2,058,000,000.00 a)b)c)d)e)f)
Mortgage loan 638,086,279.01 3,123,838,997.54 g)h)i)j)
Entrusted borrowings 1,322,271,760.09 611,060,000.00 k)l)
Credit loan 471,084,166.66 190,000,000.00
Less: Current portion 2,087,374,444.43 18,150,000.00
Total 3,529,140,539.09 5,964,748,997.54
a) The Company has obtained long-term borrowings amounting to RMB2,001,944,444.43
from the Export-Import Bank of China, the term of which is from 22 June 2020 to 24 June 2022,
and for which the Company's parent company OCT Group provides joint and several liability
guarantee at the maximum amount.
b) The Company has obtained long-term borrowings amounting to RMB998,608,333.33
from Shenzhen Branch of China Guangfa Bank Co., Ltd., the term of which is from 24 June 2021
to 23 June 2024, and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.
c) The Company's subsidiary XingDa HongYe has obtained long-term borrowings
amounting to RMB54,520,000.00 from Zhuhai Branch of Xiamen International Bank Co., Ltd.,
the term of which is from 25 November 2020 to 25 February 2022, and for which the Company
provides joint and several liability guarantee at the maximum amount.
d) The Company's subsidiary Anhui Konka Electronic Co., Ltd. has obtained long-term
borrowings amounting to RMB50,000,000.00 from Chuzhou Plaza Sub-branch of China
Construction Bank Co., Ltd., the term of which is from 29 October 2021 to 26 October 2026, and
for which the Company provides joint and several liability guarantee.
e) The Company's subsidiary Konka Xinyun Semiconductor Technology (Yancheng) Co.,
Ltd. has obtained long-term borrowings amounting to RMB60,000,000.00 from Yancheng Branch
of HuaXia Bank Co., Ltd., the term of which is from 15 September 2021 to 21 August 2026, and
for which the Company and its subsidiary Kowin Memory Technology (Shenzhen) Co., Limited
provide joint and several liability guarantee at the maximum amount.
277
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
f) The Company's subsidiary Ningbo Khr has obtained long-term borrowings amounting to
RMB20,000,000.00 from Cixi Central District Sub-branch of Bank of Ningbo, the term of which
is from 12 August 2021 to 9 September 2022, and for which the Company and Korea Electric
Group Co., Ltd. provide joint and several liability guarantee at a ratio of 3:2.
g) The Company has obtained long-term borrowings amounting to RMB380,244,344.04
from Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co., Ltd., the term of which is
from 22 January 2021 to 22 January 2026, and for which it provides land use rights of a carrying
value of RMB5,101,343.95 and investment properties of a carrying value of RMB118,542,862.44
and housing buildings of a carrying value of RMB78,862,102.73 as mortgage.
h) The Company's subsidiary Dongguan Konka has obtained long-term borrowings
amounting to RMB117,398,664.74 from Dongguan Fenggang Sub-branch of Agricultural Bank of
China Co., Ltd., the term of which is from 22 June 2021 to 21 October 2030, and for which it
provides land use rights of a carrying value of RMB193,971,110.67 as mortgage and the
Company provides joint and several liability guarantee.
i) The Company's subsidiary Sichuan Konka has obtained entrusted loans amounting to
RMB100,163,333.23 from Sichuan Gangrong Investment Development Group Co., Ltd., of
which the term is from 28 May 2018 to 24 May 2025, and for which the subsidiary Yibin Konka
Technology Park Operation Co., Ltd. provides investment properties of a carrying value of
RMB225,032,240.12 as mortgage and Telecommunication Technology provides joint and several
liability guarantee.
j) The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB40,279,937.00 from Chuzhou Branch of Industrial Bank Co., Ltd., of which the term is from
16 July 2021 to 15 July 2031, and for which it provides land use rights of a carrying value of
RMB18,810,514.67 and fixed assets of a carrying value of RMB194,679,341.14 as mortgage and
the Company provides joint and several liability guarantee.
k) The Company's parent company OCT Group has extended entrusted loans amounting to
RMB1,311,361,760.09 to the Company through China Merchants Bank Co., Ltd., the term of
which is from 9 October 2021 to 25 February 2024.
l) The Company's parent company OCT Group has extended entrusted loans amounting to
RMB10,910,000.00 to the Company through China Merchants Bank Co., Ltd., the term of which
is from 7 December 2020 to 9 December 2022.
36.Bonds Payable
278
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(1) List of Bonds Payable
Item Ending balance Beginning balance
Non-public offering corporate
4,993,698,899.30 4,993,212,788.32
bonds
Less: Bonds payable due
2,700,000,000.00 -
within 1 year
Total 2,293,698,899.30 4,993,212,788.32
(2) Changes of Bonds Payable (Excluding Other Financial Instruments
Divided as Financial Liabilities such as Preferred Shares and Perpetual Bonds)
Bond
Issue
Name Total par value dura Issue amount Beginning balance
date
tion
19Konka01 2019-1- 2+1
1,000,000,000.00 996,500,000.00 998,899,371.13
(Note a)) 14 years
19Konka02 2019-1- 3
1,500,000,000.00 1,494,750,000.00 1,498,349,056.69
(Note b)) 14 years
19Konka03 2019-6- 2+1
500,000,000.00 498,250,000.00 499,220,387.86
(Note c)) 3 years
19Konka04 2019-6- 3
500,000,000.00 498,250,000.00 499,220,387.86
(Note d)) 3 years
19Konka05 2019-7- 2+1
800,000,000.00 797,200,000.00 798,679,245.24
(Note e)) 22 years
19Konka06 2019-7- 3
700,000,000.00 697,550,000.00 698,844,339.54
(Note f)) 22 years
21Konka01 2021-1- 3
1,000,000,000.00 996,500,000.00 -
(Note g)) 8 years
21Konka02 2021-5- 3
500,000,000.00 498,250,000.00 -
(Note h)) 21 years
21Konka03 2021-7- 3
800,000,000.00 797,200,000.00 -
(Note i)) 9 years
Total 7,300,000,000.00 7,274,450,000.00 4,993,212,788.32
(continued)
Amortization
Issued in the of premium
Name Interest accrued at par value
Reporting Period and
depreciation
19Konka01 (Note a)) - 1,249,999.96 1,100,628.87
19Konka02 (Note b)) - 73,750,000.02 1,650,943.31
19Konka03 (Note c)) - 9,250,000.00 779,612.14
279
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amortization
Issued in the of premium
Name Interest accrued at par value
Reporting Period and
depreciation
19Konka04 (Note d)) - 23,369,444.43 550,314.48
19Konka05 (Note e)) - 19,831,333.32 1,320,754.76
19Konka06 (Note f)) - 32,443,055.55 770,440.20
21Konka01 (Note g)) 996,500,000.00 43,732,777.81 1,298,742.17
21Konka02 (Note h)) 498,250,000.00 12,277,777.80 465,932.92
21Konka03 (Note i)) 797,200,000.00 15,185,555.54 598,742.13
Total 2,291,950,000.00 231,089,944.43 8,536,110.98
(continued)
Repaid in the Reporting
Name Ending balance
Period
19Konka01 (Note a)) 1,000,000,000.00 -
19Konka02 (Note b)) - 1,500,000,000.00
19Konka03 (Note c)) 500,000,000.00 -
19Konka04 (Note d)) - 499,770,702.34
19Konka05 (Note e)) 800,000,000.00 -
19Konka06 (Note f)) - 699,614,779.74
21Konka01 (Note g)) - 997,798,742.17
21Konka02 (Note h)) - 498,715,932.92
21Konka03 (Note i)) - 797,798,742.13
Total 2,300,000,000.00 4,993,698,899.30
Note 1:
a) On 14 January 2019, the Company issued RMB1 billion of private placement corporate
bonds with the duration of 2+1 years, the annual interest rate of 5.00% and the due date of 14
January 2022. "19 Konka 01" has been fully sold back and delisted from the exchange on 14
January 2021.
b) On 14 January 2019, the Company issued RMB1.5 billion of private placement corporate
bonds with the duration of 3 years, the annual interest rate of 5.00% and the due date of 14
January 2022.
280
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
c) On 3 June 2019, the Company issued RMB500 million of private placement corporate
bonds with the duration of 2+1 years, the annual interest rate of 4.50% and the due date of 3 June
2022. "19 Konka 03" has been fully sold back and delisted from the exchange on 3 June 2021.
d) On 3 June 2019, the Company issued RMB500 million of private placement corporate
bonds with the duration of 3 years, the annual interest rate of 4.70% and the due date of 3 June
2022.
e) On 22 July 2019, the Company issued RMB800 million of private placement corporate
bonds with the duration of 2+1 years, the annual interest rate of 4.53% and the due date of 22 July
2022. "19 Konka 05" has been fully sold back and delisted from the exchange on 22 July 2021.
f) 22 On July 2019, the Company issued RMB700 million of private placement corporate
bonds with the duration of 3 years, the annual interest rate of 4.70% and the due date of 22 July
2022.
g) On 8 January 2021, the Company issued RMB1 billion of private placement corporate
bonds with the duration of 3 years, the annual interest rate of 4.46% and the due date of 8 January
2024.
h) On 21 May 2021, the Company issued RMB500 million of private placement corporate
bonds with the duration of 3 years, the annual interest rate of 4.00% and the due date of 21 May
2024.
i) On 9 July 2021, the Company issued RMB800 million of private placement corporate
bonds with the duration of 3 years, the annual interest rate of 3.95% and the due date of 9 July
2024.
Note 2: OCT Group provided full-amount, unconditional and irrevocable joint and several
liability guarantee for the due payment of the private offering of corporate bonds.
37. Lease Liabilities
Item Ending balance Opening balance
Lease liabilities 74,624,996.81 110,771,978.66
Less: Lease liabilities due within 1
32,092,127.18 48,493,286.81
year (see Note VI-33)
Total 42,532,869.63 62,278,691.85
38. Long-term Payables
281
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Nature Ending balance Opening balance
Accrued financing lease
434,481,614.08 921,958,930.55
outlay
Less: Unrecognized
23,674,345.59 81,802,514.30
financing expenses
Less: Current portion
270,119,697.71 358,746,566.29
(see Note VI-33)
Total 140,687,570.78 481,409,849.96
39. Long-term Employee Remuneration Payables
(1) Classification
Item Ending balance Opening balance
Termination benefits-net liabilities of
5,111,296.75 5,248,309.14
defined contribution plans
Total 5,111,296.75 5,248,309.14
40. Accrued Liabilities
Item Ending balance Opening balance Reason for formation
Product quality After-sales of
assurance 106,069,944.34 102,146,976.40
household appliances
Pending litigation 206,591.51 206,591.51
Total 106,276,535.85 102,353,567.91
282
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
41. Deferred Revenue
Formation
Item Opening balance Increase Decrease Ending balance
reason
Related to
Government grants 446,900,524.64 77,972,842.51 318,570,942.23 206,302,424.92 aaassets/inco
me
Total 446,900,524.64 77,972,842.51 318,570,942.23 206,302,424.92
(1) Category of Deferred Income
Amount
included in Amount Related to
List of Government Subsidy Opening balance Increase non-operating included in other Other changes Ending balance assets/
income this income this year income
year
Industry support fund for the Related to
229,420,000.00 229,420,000.00
industrial park in Sunning income
Subsidy for the construction of
Related to
plants in the industrial park in 72,979,200.00 1,531,032.12 71,448,167.88
assets
Yibin
Special bonus subsidy from the
Related to
government for the project in 30,000,000.00 10,000,000.00 40,000,000.00
assets
Tongchuan
Subsidy for industrial R&D 20,000,000.00 20,000,000.00 Related to
283
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount
included in Amount Related to
List of Government Subsidy Opening balance Increase non-operating included in other Other changes Ending balance assets/
income this income this year income
year
assets
Returned payments for land by Related to
19,112,727.27 392,727.24 18,720,000.03
Chongqing Konka assets
Subsidy for the development and
Related to
industrialization of dual-HDR 13,300,000.00 13,300,000.00
assets
OLED smart TVs
Plant decoration subsidy for Yibin Related to
13,553,851.00 600,911.77 12,952,939.23
Konka Technology Park assets
Subsidy for high-tech innovation Related to
11,457,800.00 84,601.67 11,373,198.33
and operation in Yancheng assets
Other government subsidies Related to
62,088,597.37 42,961,191.51 29,744,228.53 3,497,440.90 71,808,119.45
related to assets assets
Total 446,900,524.64 77,972,842.51 261,773,501.33 56,797,440.90 206,302,424.92
284
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
42. Other Non-current Liabilities
Item Ending balance Opening balance
Contract obligations over one year 104,610,663.76 106,475,449.02
Total 104,610,663.76 106,475,449.02
43. Share Capital
Change in this year (+, -)
B
o
Bonus
New n Sub
Item Opening balance issue Oth Ending balance
shares us tota
from ers
issued sh l
profit
ar
es
Total
2,407,945,408.00 2,407,945,408.00
shares
44. Capital Surplus
Increase in this Decrease in Ending
Item Opening balance
year this year balance
Other capital 11,995,756.
230,185,310.09 16,200,409.92 234,389,963.10
reserves 91
11,995,756.
Total 230,185,310.09 16,200,409.92 234,389,963.10
91
Note:Capital reserves for the current period - other capital reserves increase and decrease
due to the main reasons:
a) Capital reserve increased by RMB7,168,549.83 due to the repurchase of the equities of
minority shareholders of the subsidiary Kowin Memory (Shenzhen);
b) Capital reserve increased by RMB171,696.89 due to the repurchase of the equities of
minority shareholders of the subsidiary Sichuan Kangjiatong;
c) Capital reserve decreased by RMB1,974,131.56 due to the repurchase of the equities of
minority shareholders of the subsidiary Konka Material;
285
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
d) Other capital reserves increased by RMB88,578.98 due to the repurchase of the equities
of minority shareholders of the subsidiary Xi'an Huasheng;
e) Other capital reserves decreased by RMB2,671,625.25 due to the disposal of the associate
Shanghai Konka Technology Co., Ltd.;
f) Other capital reserves decreased by RMB7,350,000.00 due to the disposal of the associate
Wanjun Technology (Kunshan) Co., Ltd.;
g) Other capital reserves increased by RMB6,433,584.22 due to the loss of controlling right
over the subsidiary Konka Electrical Appliances;
h) The shareholding company Guangdong Kangyuan Semiconductor Co., Ltd. increased
capital and shares, resulting in an increase in other capital reserves of RMB 2,338,000.00.
286
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
45. Other Comprehensive Income
Amount incurred in this year
Less: Less:
recorded in recorded in
other other
comprehensi comprehens
Attributable to Attributable
Beginning of the Amount ve income in ive income Less:
owners of the to Ending
Item year incurred prior period in prior Income
Company as non-controllin Balance
Balance before income and period and tax
the parent g interests
tax in this year transferred transferred expense
after tax after tax
in profit or in retained
loss in the earnings in
Current the Current
Period Period
I. Other
comprehensive income
that may not be -6,398,878.20 - - - - -6,398,878.20
reclassified to profit or
loss
Changes in fair
value of other equity -6,398,878.20 -6,398,878.20
instrument investment\
287
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in this year
Less: Less:
recorded in recorded in
other other
comprehensi comprehens
Attributable to Attributable
Beginning of the Amount ve income in ive income Less:
owners of the to Ending
Item year incurred prior period in prior Income
Company as non-controllin Balance
Balance before income and period and tax
the parent g interests
tax in this year transferred transferred expense
after tax after tax
in profit or in retained
loss in the earnings in
Current the Current
Period Period
Others - -
II. Other
comprehensive income
that may subsequently -10,184,164.22 -6,210,784.44 - - - -3,753,045.45 -2,457,738.99 -13,937,209.67
be reclassified to profit
or loss
Of which: Other
comprehensive income -2,397,350.96 1,182,217.31 1,182,217.31 -1,215,133.65
that will be
reclassified to profit or
288
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in this year
Less: Less:
recorded in recorded in
other other
comprehensi comprehens
Attributable to Attributable
Beginning of the Amount ve income in ive income Less:
owners of the to Ending
Item year incurred prior period in prior Income
Company as non-controllin Balance
Balance before income and period and tax
the parent g interests
tax in this year transferred transferred expense
after tax after tax
in profit or in retained
loss in the earnings in
Current the Current
Period Period
loss under the equity
method
Differences arising
from translation of
foreign -7,786,813.26 -7,393,001.75 -4,935,262.76 -2,457,738.99 -12,722,076.02
currency-denominated
financial statements
Total of other
-16,583,042.42 -6,210,784.44 -3,753,045.45 -2,457,738.99 -20,336,087.87
comprehensive income
289
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
46. Surplus Reserve
Increase in Decrease in
Item Opening balance Ending balance
this year this year
Statutory
973,502,519.62 32,459,254.57 - 1,005,961,774.19
surplus reserves
Discretional
238,218,590.05 - 238,218,590.05
surplus reserves
Total 1,211,721,109.67 32,459,254.57 - 1,244,180,364.24
47. Retained Earnings
Item This Year Last year
Closing Balance of Last Year 4,595,371,391.63 4,239,763,606.89
Add: Total beginning balance of retained
earnings before adjustments
Of which: change of accounting policy
Other adjustment factors
Opening Balance of Current Year 4,595,371,391.63 4,239,763,606.89
Add: Net profit attributable to owners of the
905,352,997.68 477,633,250.14
Company as the parent
Other comprehensive income carried
1,628,195.00 -1,628,195.00
forward to retained earnings
Less: Withdrawal of statutory surplus reserve 32,459,254.57
Withdrawal of discretional surplus
reserves
Dividend of ordinary shares payable 240,794,540.80 120,397,270.40
Closing Balance of the Current Period 5,229,098,788.94 4,595,371,391.63
48. Operating Revenue and Cost of Sales
(1) Operating Revenue and Cost of Sales
Amount incurred in this year Amount incurred last year
Item
Revenue Cost Revenue Cost
Lucrative
48,232,324,902.09 46,690,427,987.52 49,869,938,568.55 47,324,236,629.26
business
Others 874,188,767.49 711,456,994.01 481,897,986.32 270,827,720.72
Total 49,106,513,669.58 47,401,884,981.53 50,351,836,554.87 47,595,064,349.98
290
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(2) List of Deduction from Operating Income
Same period
This year
Item Details of last year Details
(RMB)
(RMB)
Amount of operating 49,106,513,66 50,351,836,55
income 9.58 4.87
Total amount of items
579,266,272.2 445,172,864.0
deducted from operating 0 5
income
Proportion of the total
amount of items deducted
1.18 0.88
from operation income in
operating income (%)
I. Business income irrelevant to principal business
1. Other business income
outside normal business.
E.g., income from the
lease of fixed assets,
Income from
intangible assets, Income from
sales of waste
sales of waste
packaging materials, sales products, utility
products,
bills,
materials, non-monetary utility bills,
installment fee,
asset exchange with rental income,
579,266,272.2 445,172,864.0 rental income,
income from
materials and operation of 0 5 income from
material sales
material sales
entrusted management and other
and other
income not
business, and income that income not
related to the
related to the
is included in the income main business
main business
from primary business but
is outside the normal
business of the listed
company.
2. Income from
non-qualified
pseudo-banking
291
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Same period
This year
Item Details of last year Details
(RMB)
(RMB)
businesses; such as
interest income from
borrowed funds; income
from new pseudo-banking
businesses in the
reporting and previous
fiscal years, such as
income from guarantee,
commercial factoring,
small loans, finance lease
and pawn, except finance
lease business conducted
for the sale of primary
products.
3. Income from new
trading businesses in the
reporting and previous
fiscal years.
4. Income from related
transactions irrelevant to
the existing normal
operation businesses of
the listed company.
5. Income of subsidiaries
acquired in business
combination under the
same control from the
period-beginning to the
combination date.
6. Income from
businesses that have not
292
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Same period
This year
Item Details of last year Details
(RMB)
(RMB)
yet had or are difficult to
have a stable business
model.
Subtotal of business
579,266,272.2 445,172,864.0
income irrelevant to 0 5
principal business
II. Income without commercial substance
1. Income from
transactions or events that
do not significantly alter
the risk, timing or amount
of future cash flows of the
company.
2. Income from
transactions without true
business. E.g., false
income realized in the
way of self-transaction
and false income from
transactions by means of
Internet technology ore
else otherwise.
3. Income from
businesses at unfair trade
prices.
4. Income from
subsidiaries or businesses
acquired in business
combination at unfair
considerations or by
293
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Same period
This year
Item Details of last year Details
(RMB)
(RMB)
non-trading means in the
reporting fiscal year.
5. Income involved in
non-standard audit
opinions in audit
opinions.
6. Other income from
transactions or events
without commercial
rationality.
Subtotal of income
without commercial
substance
III. Other income
irrelevant to principal
business or without
commercial substance
Amount of operating 48,527,247,39 49,906,663,69
income after deduction 7.38 0.82
(3) Details of Income from Contracts
Category of contracts Amount incurred in this year Total
Product categories
Of which: Industry trade 29,682,677,483.94 29,682,677,483.94
business
Color TV business 7,300,340,878.11 7,300,340,878.11
Environmental 4,354,614,711.52 4,354,614,711.52
Protection Sub-Division
White Goods 3,699,285,362.91 3,699,285,362.91
Sub-Division
Semi-conductor 321,958,525.17 321,958,525.17
business
294
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Category of contracts Amount incurred in this year Total
Others 3,747,636,707.93 3,747,636,707.93
Total 49,106,513,669.58 49,106,513,669.58
Classified by operating
region
Of which: Domestic 22,033,965,598.67 22,033,965,598.67
Overseas 27,072,548,070.91 27,072,548,070.91
Total 49,106,513,669.58 49,106,513,669.58
(4) Main Operations (Classified by product)
Amount incurred in this year Amount incurred last year
Item
Revenue Cost Revenue Cost
Supply chain
trading 29,682,677,483.94 29,514,534,704.12 30,483,602,365.87 30,183,532,940.90
business
Color TV
7,300,340,878.11 6,922,606,555.81 7,519,625,331.33 6,925,658,808.00
business
Environment
al Protection 4,354,614,711.52 4,030,685,013.80 4,823,779,902.39 4,097,138,754.02
Sub-Division
White Goods
3,699,285,362.91 3,395,382,780.50 3,842,051,456.02 3,317,107,750.97
Sub-Division
Semi-conduct
321,958,525.17 306,296,431.81 282,969,230.63 275,286,437.09
or business
Others 2,873,447,940.44 2,520,922,501.48 2,917,910,282.31 2,525,511,938.28
Total 48,232,324,902.09 46,690,427,987.52 49,869,938,568.55 47,324,236,629.26
(5) Information in relation to the trade price apportioned to the residual contract performance
obligation:
The amount of income corresponding to the performance obligations of contracts signed but
not yet performed or fully performed was RMB854,210,822.59 at the year-end, among which
RMB844,024,014.31 is expected to be recognized in 2022, RMB5,352,168.10 is expected to be
recognized in 2023, and RMB4,834,640.18 is expected to be recognized in 2024.
295
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
49. Taxes and Surcharges
Item Amount incurred in this Amount incurred last
year year
Stamp duty 37,561,315.54 25,112,454.61
Land use tax 25,605,090.28 17,657,115.79
Urban maintenance and
14,388,124.18 21,225,457.65
construction tax
Property tax 11,346,770.43 13,264,477.94
Education Surcharge 7,253,707.52 9,423,102.41
Local education surcharge 3,648,187.79 6,341,838.85
Water resources fund 697,990.97 766,504.35
Others 6,577,488.45 3,444,915.71
Total 107,078,675.16 97,235,867.31
50. Sales Costs
Item Amount incurred in this Amount incurred last
year year
Employee remuneration 394,544,994.62 410,820,148.47
Advertising expense 371,795,626.31 405,038,820.57
Warranty fee 190,310,768.84 186,239,759.56
Promotional activities 157,616,787.85 199,811,766.50
Logistic Fee 99,881,005.27 395,728,038.37
Taxes and fund 65,692,017.16 58,646,916.00
Travel expense 20,432,505.61 18,952,238.58
Rental charges 21,204,278.37 18,695,062.27
Entertainment expenses 15,367,291.49 13,710,892.65
Exhibition expenses 8,819,407.71 17,841,836.83
Others 82,398,212.14 100,141,324.47
Total 1,428,062,895.37 1,825,626,804.27
Note: According to the sales contract of the current year, if the transportation expenses
incurred for the performance of customer contracts do not constitute individual performance
obligations, the Company will include such expenses as costs related to commodity sales into the
contract performance costs and into the operating costs.
512. Management Costs
296
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this Amount incurred last
year year
Employee remuneration 563,542,871.74 524,488,419.75
Depreciation charge 127,774,142.65 147,324,296.40
Intermediary fees 51,683,999.24 100,879,921.97
Travel expense 18,560,183.40 14,489,183.36
Patent fees 26,798,865.14 38,863,726.67
Loss on scraping of inventories 4,813,357.43 5,515,711.35
Utility bills 10,672,898.71 11,737,097.44
Others 156,602,798.81 179,683,586.40
Total 960,449,117.12 1,022,981,943.34
52. R&D Expenses
Item Amount incurred in this Amount incurred last
year year
Labor cost 307,372,953.90 297,465,065.33
Material expense 36,669,220.05 120,181,005.28
New product trial production 86,850,733.52
116,276,268.41
expense
Commission service fee 38,572,290.59 32,833,667.49
Depreciation and amortization 79,082,388.10
23,530,284.84
expense
Information use fee 3,154,499.61 14,229,413.16
Testing expense 5,327,812.07 9,552,419.94
Others 59,305,590.17 67,810,487.20
Total 616,335,488.01 681,878,611.65
53. Financial Expenses
Item Amount incurred in this Amount incurred last
year year
297
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this Amount incurred last
year year
Interest expense 1,003,080,641.99 979,223,522.98
Less: Interest income 169,492,982.89 164,580,939.30
Add: Exchange loss 70,202,754.70 220,044,519.70
Other expenses 48,851,859.95 56,922,864.38
Total 952,642,273.75 1,091,609,967.76
54. Other Income
Sources Amount incurred in this year Amount incurred last year
Support funds 881,725,458.00 566,075,801.50
Rewards and subsidies 176,611,973.06 247,663,680.35
Transfer of deferred income 261,773,501.33 36,646,447.27
Software tax refund 12,585,857.26 30,710,313.50
Post subsidies 2,454,397.17 21,703,015.11
Subsidies for L/C exports 314,298.00 5,555,574.57
Land tax rebates 18,069,095.29 15,955,706.27
Others 4,622,989.46
Total 1,353,534,580.11 928,933,528.03
55. Investment Returns
Item Amount incurred in this year Amount incurred last year
Long-term equity
investment income 78,926,555.74 104,288,418.75
accounted by equity method
Investment income from
disposal of long-term equity 2,854,953,098.82 1,343,712,485.37
investment
Investment income from
disposal of trading financial 3,405,333.03
assets
Income from remeasurement 1,169,723,182.43 885,804,841.25
298
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this year Amount incurred last year
of residual stock rights at
fair value after losing
control power
Interest income earned on
investment in debt
73,807,616.46 73,421,917.82
obligations during the
holding period
Income from entrust
financial products and 21,221,916.72
entrust loans
Adjusted investment income
with unrealized profit
1,081,111.64
incurred from
countercurrent transactions
Investment income from
disposal of financial assets
39,396,495.93 399,980.27
at fair value through profit
or loss
Total 4,216,806,949.38 2,433,336,004.85
Note: The remarkable increase in the investment income generated from the disposal of long-term
equity investment was mainly due to the disposal of some equity of Shenzhen E2info Network
Technology Co., Ltd. in the Reporting Period.
56. Income from Changes in Fair Value
Sources Amount incurred in this Amount incurred last year
year
Financial assets at fair value
52,490,907.33 19,089,541.66
through profit or loss
Total 52,490,907.33 19,089,541.66
57. Credit Impairment Loss
Amount incurred last
Item Amount incurred in this year
year
17,539,258.26 -24,930,991.28
Bad debt loss of accounts
-429,297,822.53 -444,069,685.68
receivable
Bad debt loss of other receivables -695,515,117.04 -258,255,844.49
Bad debt loss of prepayment - 4,880,671.30
299
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Total -1,107,273,681.31 -722,375,850.15
58. Impairment Losses on Assets
Amount incurred in this
Item Amount incurred last year
year
Inventory depreciation loss and
contract performance cost -160,020,309.63 -172,812,626.21
impairment loss
Contractual Asset Impairment Loss 12,125,778.69 -146,807,263.10
Impairment loss on long-term
-266,531,254.30 -38,375,298.75
equity investment
Impairment losses on fixed assets -3,770,121.13 -947,487.17
Impairment losses on goodwill -185,773,986.72 -103,464,423.24
Impairment losses on construction
-327,586.21
in progress
Impairment losses on intangible
-38,804,906.72
assets
Total -643,102,386.02 -462,407,098.47
59. Asset Disposal Income (“-” for loss)
Amount
Amount Amount recorded in
Item incurred in this incurred last non-recurring
year year profit or loss in
this year
Incomes from disposal of disposal
- - -
groups held for sale
Incomes from disposal of
571,964.16 206,315,700.34 571,964.16
non-current assets
Including: incomes from disposal
of non-current assets not classified 571,964.16 206,315,700.34 571,964.16
as the held-for-sale assets
Of which: Fixed assets disposal
571,964.16 19,882,250.97 571,964.16
income
Intangible assets disposal
- 186,433,449.37 -
income
Income from non-monetary asset
- - -
exchange
Income from the disposal of
non-current assets in debt - - -
restructuring
300
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Total 571,964.16 206,315,700.34 571,964.16
60. Non-operating Income
(1) List of Non-operating Income
Amount
Amount Amount recorded in
Item incurred in this incurred last non-recurring
year year profit or loss in
this year
Compensation and penalty income 47,249,011.10 55,750,466.90 47,249,011.10
Government subsidies unrelated to 11,428,586.31 10,322,986.31 11,428,586.31
the normal operation of the
Company
Gains on damage and scrap of 361,063.43 1,076,972.21 361,063.43
non-current assets
Income from debt restructuring 19,777.25 6,030,592.00 19,777.25
Others 23,543,094.26 13,945,777.99 23,543,094.26
Total 82,601,532.35 87,126,795.41 82,601,532.35
(2) Government Subsidies Recorded in Current Profit or Loss
Item Distribution entity Distribution reason Nature
Subsidy for Chuzhou Chuzhou Tongsheng
Subsidy for participating in
Huike Smart Household Investment
Chuzhou Huike Smart Household Subsidies
Appliances Industry Development Co.,
Appliances Industry Investment
Investment Ltd.
Management
Renewable resources
Committee of the Subsidy for participating in the
processing and
industrial park in renewable resources processing and Subsidies
dispatching base and
Wulong District, dispatching base
regional settlement center
Chongqing City
Subsidy for placement of VAT relief for placement of
ex-soldiers ex-soldiers Subsidies
Total
(continued)
301
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Whether
influence the Special Related to
Amount incurred Amount incurred
Item profits or subsidy assets/related
in this year last year
losses of the or not income
year or not
Subsidy for Chuzhou
Huike Smart Household Related to
No No 10,136,986.31 10,136,986.31
Appliances Industry revenue
Investment
Renewable resources
processing and Related to
No No 1,291,600.00
dispatching base and revenue
regional settlement center
Subsidy for placement of Related to
No No 186,000.00
ex-soldiers revenue
Total 11,428,586.31 10,322,986.31
61. Non-operating Expenses
Amount recorded in
Amount of current Amount of
Item non-recurring profit
year previous year
or loss in this year
Losses from damage and
6,920,746.88 5,261,743.91 6,920,746.88
scrap of non-current assets
Compensation expense 1,634,178.14 12,762,989.57 1,634,178.14
Others 15,889,799.33 7,565,741.38 15,889,799.33
Total 24,444,724.35 25,590,474.86 24,444,724.35
62. Income Tax Expenses
(1) Income Tax Expenses
Item Amount incurred in this year Amount incurred last year
Income tax expense of the year 282,256,027.61 259,865,247.09
Deferred income tax expense 482,288,526.58 -298,071,552.16
Total 764,544,554.19 -38,206,305.07
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Amount incurred in
Item
this year
302
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in
Item
this year
Total consolidated profit of this year 1,571,245,380.29
Current income tax expense accounted at statutory/applicable tax rate 392,811,345.07
Influence of applying different tax rates by subsidiaries 35,461,208.21
Influence of income tax before adjustment 116,145,995.02
Influence of non-taxable income -201,634,758.15
Influence of non-deductible costs, expenses and losses 84,590,539.22
The effect of using deductible losses of deferred income tax assets that have
-9,064,135.08
not been recognized in the previous period
Influence of deductible temporary difference or deductible losses of
414,560,009.56
unrecognized deferred income tax in the Reporting Period
Changes in the balance of deferred income tax assets/ liabilities in previous
-4,099,290.18
period due to adjustment of tax rate
Additional deduction for R&D expenses -64,226,359.48
Income tax expenses 764,544,554.19
63. Other Comprehensive Income
For details, refer to "Note VI-45 Other Comprehensive Income".
64. Cash Flow Statement
(1) Cash Generated from/Used in Other Operating/Investing/Financing Activities
1) Other cash received from business activities
Item Amount incurred in Amount incurred last
this year year
Income from government subsidy 1,127,630,135.26 1,171,789,839.65
Front money and guarantee deposit 425,177,436.15 1,343,399,027.31
Intercourse funds 209,797,069.63 737,849,254.12
Interest income from bank deposits 71,275,968.05 43,947,377.51
Compensation and penalty income 16,337,009.60 56,949,337.80
The commercial factoring payment 2,793,522.48 701,570,000.00
Others 163,971,164.55 168,111,950.02
Total 2,016,982,305.72 4,223,616,786.41
303
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
2) Cash payments related to other operating activities
Item Amount incurred in Amount incurred last
this year year
Expense for cash payment 1,312,250,512.94 1,396,622,206.87
Payment for guarantee deposit, cash
deposit 296,141,059.53 807,211,303.53
Payment made on behalf 21,862,378.10 24,937,901.55
Expense for bank handling charges 19,675,970.82 26,997,496.86
The commercial factoring payment 700,000,000.00
Others 491,244,850.65 509,182,248.35
Total 2,141,174,772.04 3,464,951,157.16
3) Other cash received from investment activities
Item Amount incurred in Amount incurred last
this year year
Recovery of entrusted loans 1,962,465,274.48 1,669,305,006.07
Cash received from acquisition of subsidiaries 23,694.03
Recovery of financial products and fixed term
deposits 531,953,067.30
Others 425,985,130.82 521,000,071.70
Total 2,388,474,099.33 2,722,258,145.07
4) Other cash paid for investment activities
Item Amount incurred in Amount incurred last
this year year
Cash paid for disposal of subsidiaries 512,222,301.34
Payment for entrusted loans 421,590,000.00 375,578,000.00
Purchase of wealth management products and
term deposits 639,160,000.00
Others 176,545,630.00 342,199,320.83
Total 1,110,357,931.34 1,356,937,320.83
5) Other cash received from funding activities
304
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in Amount incurred last
this year year
Receiving entrusted loans 504,555,407.07 955,993,888.99
Recovery of margin deposit pledged 443,925,442.47 1,139,622,285.43
Financing lease accounts 38,000,000.00 659,602,970.00
Others 32,643,873.47
Total 1,019,124,723.01 2,755,219,144.42
6) Other cash paid for funding activities
Item Amount incurred in Amount incurred last
this year year
Finance leases 468,899,445.22 346,079,008.76
Deposit as margin for pledge 289,851,369.48 1,116,447,153.50
Repayment of entrusted loans 50,523,144.79 266,946,710.52
Financing cost 31,538,566.39 31,573,001.17
Others 87,815,061.07 213,638,809.72
Total 928,627,586.95 1,974,684,683.67
(2) Supplemental Information for Cash Flow Statement
Item Amount of current year Amount of previous
year
1. Reconciliation of net profit to net —
cash flows generated from
operating activities
Net profit 806,700,826.10 540,073,462.44
Add: Provision for impairment of
643,102,386.02 462,407,098.47
assets
Credit impairment loss 1,107,273,681.31 722,375,850.15
Depreciation of fixed assets,
oil-gas assets, and productive 389,517,753.75 319,151,539.89
biological assets
Depreciation of right-of-use
46,547,315.20
assets
305
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount of current year Amount of previous
year
Amortization of intangible assets 80,425,143.85 78,424,382.89
Amortization of long-term
81,281,582.15 87,717,664.64
prepaid expenses
Losses on disposal of fixed
assets, intangible assets and other -571,964.16 -206,315,700.34
long-lived assets (gains: negative)
Losses on scrap of fixed assets
6,559,683.45 4,184,771.70
(gains: negative)
Losses on changes in fair value
-52,490,907.33 -19,089,541.66
(gains: negative)
Finance costs (gains: negative) 953,288,367.31 893,158,757.67
Investment loss (gains: negative) -4,216,806,949.38 -2,433,336,004.85
Decrease in deferred income tax
480,269,955.17 -278,153,255.22
assets (gains: negative)
Increase in deferred income tax
6,665,936.98 -19,647,864.12
liabilities (“-” means decrease)
Decrease in inventories (gains:
215,494,199.22 623,886,945.84
negative)
Decrease in accounts receivable
generated from operating activities 316,775,883.03 -2,928,968,789.79
(gains: negative)
Increase in accounts payable
used in operating activities (decrease: 206,077,002.77 2,369,393,657.77
negative)
Others -261,353,501.33 -36,646,447.27
Net cash flow from operating
808,756,394.11 178,616,528.21
activities
2. Significant investing and
financing activities without
306
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount of current year Amount of previous
year
involvement of cash receipts and
payments
Conversion of debt to capital
Convertible corporate bonds
matured within 1 Year
Fixed asset under finance lease
3. Net increase/decrease of cash and
cash equivalent:
Ending balance of cash 5,968,347,219.03 4,298,056,113.24
Less: Opening balance of cash 4,298,056,113.24 4,493,701,917.22
Plus: Ending balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash 1,670,291,105.79
-195,645,803.98
equivalents
(3) Net Cash Paid for Acquisition of Subsidiaries this Year
Item Amount of current
year
Cash or cash equivalents paid in the current period for the business combination
10,000.00
occurring in the current period
Of which: Xi'an Feihe 10,000.00
Less: cash and cash equivalents held by subsidiaries on the purchase date 9,800.00
Of which: Xi'an Feihe 9,800.00
Add: Cash or cash equivalents received in the Reporting Period from disposal of
96,500,000.00
subsidiaries in the prior period
Net cash paid for acquisition of subsidiaries 96,500,200.00
(4) Net Cash Receive from Disposal of the Subsidiaries
307
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount of current
year
Cash or cash equivalents received in the Reporting Period from disposal of subsidiaries
2,951,937,227.08
in the Current Period
Of which: Yantai Kangyun 34,510,000.00
Shenzhen Kangxin Property 104,420,000.00
Dongguan Kangjia 13,007,227.08
E2info 2,800,000,000.00
Less: cash and cash equivalents held by subsidiaries on the date of losing control power 382,211,714.18
Of which: Yantai Kangyun 420,807.32
Shenzhen Kangxin Property 5,365,512.56
Dongguan Kangjia 179,239.55
E2info 376,246,154.75
Add: Cash or cash equivalents received in the Reporting Period from disposal of
subsidiaries in the prior period
Net cash received from disposal of subsidiaries 2,569,725,512.90
(5) Cash and Cash Equivalents
Item Ending balance Opening balance
Cash 5,968,347,219.03 4,298,056,113.24
Including: Cash on hand 363.22 16,052.88
Bank deposits on demand 5,968,346,855.81 4,298,040,060.36
Ending balance of cash and cash
5,968,347,219.03 4,298,056,113.24
equivalents
65. Items in the Statement of Changes in Shareholders' Equity
There is no “other” amount to adjust the amount at the end of the previous year in this period.
66. Assets with Restricted Ownership or Right to Use
Item Ending balance Opening balance
308
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance Opening balance
Among them, RMB 467,911,612.25 is
the margin deposit, which is pledged
for borrowing money or issuing bank
acceptance bills; RMB 19,966,629.15
monetary capital 521,205,992.21 for financial supervision account
funds; RMB 20,918,528.76 is time
deposit that cannot be withdrawn in
advance; RMB 12,409,222.05 is
restricted due to other reasons.
notes receivable 540,032,830.08 The pledge of make out an invoice
investment property 354,245,460.11 mortgage loan
Mortgage loan, original shareholder
fixed assets 1,261,093,738.34 guarantee mortgage, finance lease
mortgage
Mortgage loan, mortgage guaranteed
intangible assets 380,518,831.80
by the original shareholder
construction in process 76,401,305.41 Finance lease mortgage
total 3,133,498,157.95
67. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Item Ending balance of Exchange Ending balance in
foreign currencies rate RMB
Monetary Assets
Of which: USD 104,127,945.47 6.3757 663,888,541.93
EUR 72,025.29 7.2197 520,000.99
EGP 6,507,341.87 0.4058 2,640,679.33
GBP 1.32 8.6064 11.36
HKD 12,711,963.75 0.8176 10,393,301.56
CAD 6.96 5.0046 34.83
309
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance of Exchange Ending balance in
foreign currencies rate RMB
PLN 3,100,270.37 1.5717 4,872,694.94
Accounts Receivable
Of which: USD 150,964,132.67 6.3757 962,502,020.66
EUR 504,583.11 7.2197 3,642,938.68
EGP 12,652,995.00 0.4058 5,134,585.37
GBP 1,065,864.75 8.6064 9,173,258.38
HKD 70,406,056.64 0.8176 57,563,991.91
AUD 49,764.00 4.6220 230,009.21
PHP 83,473.26 0.1251 10,442.50
Other Receivables
Of which: USD 97,035,927.80 6.3757 618,671,964.87
EGP 8,000.00 0.4058 3,246.40
HKD 1,115,429.85 0.8176 911,975.45
JPY 21,400,000.00 0.0554 1,185,560.00
Short-term borrowings
Of which: USD 89,678,741.45 6.3757 571,764,751.86
Accounts payable
Of which: USD 35,718,564.93 6.3757 227,730,854.42
EGP 5,892,833.22 0.4058 2,391,311.72
HKD 34,778,229.07 0.8176 28,434,680.09
Other payables
Of which: EUR 32,834.59 7.2197 237,055.89
EGP 2,370,044.30 0.4058 961,763.98
HKD 17,366,323.58 0.8176 14,198,706.16
Interest payable
Of which: USD 106,816.56 6.3757 681,030.34
310
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(2) Notes to Overseas Entities
The significant overseas entities include Hong Kong Konka, Konka Electrical Appliances
International Trading, Chain Kingdom Memory Technologies, Kangjietong and Jiali International.
The main overseas operating place is Hong Kong. The Company’s recording currency is HKD
since the main currency in circulation in Hong Kong is HKD.
68. Government Subsidies
(1) Basic Information on Government Subsidy
Amount recorded in
Project Amount Listed items the current profit or
loss
Industrial support funds to Shaanxi Other
472,680,000.00 472,680,000.00
Konka income
Industrial support funds to Other
200,000,000.00 200,000,000.00
Chongqing income
Other
Industrial support funds to Suining 174,000,000.00 174,000,000.00
income
Other
income/defer
Land tax rebates 352,861,234.75 277,005,086.70
red income,
etc.
Total 1,199,541,234.75 1,123,685,086.70
(2) Return of Government Subsidy
No such cases in the Reporting Period.
311
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
VII. Changes of Consolidation Scope
1. Disposal of subsidiary
The differences of enjoyed net
Equity assets share of the subsidiary in
The equity disposal disposal Method of Recognition basis for the time of corresponding consolidated
Name Time of losing control
price proportion equity disposal losing control power statements of the disposal price
(%) and the disposal investment
(RMB’0,000)
The rights and obligations related to
Dongguan
1,300.72 65.00 Transfer 2021-12-27 the underlying equity have been 761.65
Kangjia
transferred
The rights and obligations related to
E2info 280,000.00 70.00 Transfer 2021-12-30 the underlying equity have been 247,734.24
transferred
The rights and obligations related to
Econ
30,624.05 11.70 Transfer 2021-11-25 the underlying equity have been 6,121.67
Technology
transferred
The rights and obligations related to
Yantai Kangyun 3,451.00 17.00 Transfer 2021-3-31 the underlying equity have been 3,683.38
transferred
Shenzhen The rights and obligations related to
Kangxin 10,442.00 51.00 Transfer 2021-6-22 the underlying equity have been 8,597.34
Property transferred
(continued)
312
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount of other
Residual equity Carrying value of Recognition method and
Fair value of residual Gains or losses from comprehensive income
proportion on residual equity on main assumption of fair
equity on the date of re-measurement of residual related to former
Name the date of the date of losing value of residual equity
losing control power equity at fair value subsidiaries transferred
losing control control power on the date of losing
(RMB’0,000) (RMB’0,000) into investment profit or
power (%) (RMB’0,000) control power
loss (RMB’0,000)
Dongguan
35.00 340.56 692.06 351.50 Evaluated price
Kangjia
E2info 25.78 12,490.35 102,101.13 89,610.78 Evaluated price
Econ
39.30 82,302.86 102,494.40 20,191.54 Evaluated price
Technology
Yantai Kangyun 34.00 83.50 6,902.00 6,818.50 Evaluated price
Shenzhen
Kangxin - - - - -
Property
313
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
2. Change of merger scope for other reasons
(1) Subsidiaries Established by the Company in 2021
Time and place
Shareholdin
Name Registered capital of obtaining Way of gaining
g percentage
control power
(%)
Nantong Hongdin 30,000,000.00 100.00 2021-4-22 Newly established
Chuzhou Konka 100,000,000.00 94.90 2021-6-28 Newly established
Xi'an Huasheng 100,000,000.00 66.00 2021-3-4 Newly established
Konka Soft Electronic 100,000,000.00 95.00 2021-3-31 Newly established
Konka Hongye Electronics 100,000,000.00 90.10 2021-5-7 Newly established
Kowin Memory (Hong
HKD 10,000,000.00 100.00 2021-2-2 Newly established
Kong)
Industrial and Trade
50,000,000.00 100.00 2021-2-7 Newly established
Technology
Konka Huazhong 30,000,000.00 100.00 2021-6-9 Newly established
Yibin Kangrun Medical 50,000,000.00 82.19 2021-3-26 Newly established
Yibin Kangrun
76,000,000.00 53.69 2021-4-21 Newly established
Environmental Protection
Kangruncheng
10,000,000.00 26.01 2021-3-8 Newly established
Environmental Technology
Shaanxi Konka Intelligent 120,000,000.00 51.00 2021-3-5 Newly established
Kangxin Semiconductor 70,000,000.00 100.00 2021-6-11 Newly established
Xi'an Feihe 1,000,000.00 100.00 2021-9-8 Investment
Chongqing Xinyuan
50,000,000.00 75.00 2021-9-8 Newly established
Semiconductor
Jiangxi Konka Industrial
100,000,000.00 70.00 2021-9-14 Newly established
Park
Ruichang Kangrui Real
10,000,000.00 70.00 2021-9-14 Newly established
Estate
Industrial development in
10,000,000.00 51.00 2021-10-15 Newly established
Wuhan
Kangxiaojia Digital 20,000,000.00 100.00 2021-12-30 Newly established
Yijiakang Smart Terminal 20,000,000.00 100.00 2021-12-30 Newly established
Chongqing E2info 20,000,000.00 95.78 2021-12-8 Newly established
Lanrun Environmental
10,000,000.00 51.00 2021-11-24 Newly established
Protection
Guizhou Kangkai Material
10,000,000.00 51.00 2021-12-30 Newly established
Technology
Guizhou Konka New
100,000,000.00 51.00 2021-10-19 Newly established
Material Technology
Guizhou Kanggui Energy 100,000,000.00 100.00 2021-12-31 Newly established
Guangdong Xinwei 20,000,000.00 100.00 2021-12-29 Newly established
Kangxinrun Renewable 60,000,000.00 51.00 2021-12-30 Newly established
314
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Resources
Guizhou Kanggui Material
100,000,000.00 70.00 2021-10-25 Newly established
Technology
Sichuan Chengrui 25,000,000.00 80.00 2021-11-30 Investment
Chongqing Jiarun 20,000,000.00 80.00 2021-12-21 Newly established
Nantong Kanghai 50,000,000.00 51.00 2021-12-21 Newly established
Chongqing Kangyiyun 10,000,000.00 80.00 2021-12-29 Newly established
(2) The Company's Cancellation of the Distribution of Remaining Assets of Subsidiaries in 2021
Shareholding
Liquidation
Name Registered capital percentage
completion time
(%)
Xiamen Dalong 2,600,000.00 69.23 2021-11-10
Industrial Park Development 100,000,000.00 51.00 2021-10-28
Kangquan Enterprise 100,000,000.00 51.00 2021-10-25
Konka Suyuan 100,000,000.00 51.00 2021-10-27
Chongqing Kanglei 50,000,000.00 51.00 2021-4-7
Henan Kangxin Property 50,000,000.00 51.00 2021-5-18
Chuanghui Smart 1,000,000.00 40.80 2021-11-18
Kangxin Semiconductor 70,000,000.00 100.00 2021-8-4
Hefei Chain Kingdom Memory
5,000,000.00 51.00 2021-11-19
Technologies
（3）Others
315
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
① The minority shareholders of konka Hong Kong Zhisheng, a subsidiary of the Company,
increased capital, resulting in the reduction of the company's shareholding ratio to 48.996%, and
the control of the company has been transferred and is no longer included in the scope of merger.
② The company will reduce the capital contribution of the registered capital of Shenzhen
Kanghui Technology, a subsidiary of Sun Company. After the capital reduction, the shareholding
ratio will be adjusted from 51% to 0.72%. The control right has been transferred and will no
longer be included in the scope of merger.
③ The company's subsidiary Kangjia Electric Appliance has accepted the bankruptcy liquidation
application of Kangjia Electric Appliance by the civil ruling of Shenzhen Intermediate People's
Court of Guangdong Province on February 2, 2021. The relevant assets have been formally
transferred to the bankruptcy administrator on August 9, 2021, and the control rights have been
transferred and are no longer included in the scope of merger.
316
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
VIII. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Enterprise management consulting, Establishme
Guangdong, Guangdong,
1 Konka Ventures incubation management, housing leasing, 51 nt or
Shenzhen Shenzhen
etc. investment
Establishme
Other professional consultation and
2 Yantai Konka Shandong, Yantai Shandong, Yantai 51 nt or
investigation
investment
Establishme
Sichuan, Sichuan,
3 Chengdu Anren Enterprise incubation management 51 nt or
Chengdu Chengdu
investment
Establishme
Konka Enterprise Guizhou, Guizhou,
4 Enterprise management consulting 51 nt or
Service Guiyang Guiyang
investment
Establishme
5 Yibin Konka Incubator Sichuan, Yibin Sichuan, Yibin Commercial services 51 nt or
investment
6 Anhui Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 78
Establishme
nt or
317
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
7 Kangzhi Trade Anhui, Chuzhou Anhui, Chuzhou Wholesale 78 nt or
investment
Establishme
Guangdong, Guangdong,
8 Konka Factoring Insurance agents (non-bank finance) 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
9 Konka Unifortune Trade and services 51 nt or
Shenzhen Shenzhen
investment
Establishme
China, Hong China, Hong
10 Jiali International Trade and services 51 nt or
Kong Kong
investment
Establishme
Guangdong, Guangdong,
11 Wankaida Software development 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
12 Dongguan Konka Manufacturing industry 75 25 nt or
Dongguan Dongguan
investment
Establishme
13 Suining Konka Smart Sichuan, Suining Sichuan, Suining Wholesale 100 nt or
investment
14 Konka Europe Germany, Germany, International trade 100 Establishme
318
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Frankfurt Frankfurt nt or
investment
Establishme
Telecommunication Guangdong, Guangdong,
15 Manufacturing industry 75 25 nt or
Technology Shenzhen Shenzhen
investment
Establishme
China, Hong China, Hong
16 Konka Mobility Commercial 100 nt or
Kong Kong
investment
Establishme
Guangdong, Guangdong,
17 Mobile Interconnection Commercial 100 nt or
Shenzhen Shenzhen
investment
Establishme
18 Sichuan Konka Sichuan, Yibin Sichuan, Yibin Manufacturing industry 100 nt or
investment
Establishme
19 Yibin Smart Sichuan, Yibin Sichuan, Yibin Manufacturing industry 100 nt or
investment
Establishme
20 Anhui Tongchuang Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 100 nt or
investment
Establishme
Anhui Electrical
21 Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 51 nt or
Appliance
investment
319
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
22 Frestec Refrigeration Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51 nt or
investment
Establishme
23 Frestec Smart Home Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51 nt or
investment
Establishme
Frestec Electrical
24 Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51 nt or
Appliances
investment
Establishme
Frestec Household
25 Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51 nt or
Appliances
investment
Establishme
Jiangsu, Jiangsu,
26 Jiangsu Konka Smart Manufacturing 51 nt or
Changzhou Changzhou
investment
Establishme
27 Kangjiatong Sichuan, Yibin Sichuan, Yibin Trade and services 100 nt or
investment
Establishme
Guangdong, Guangdong,
28 Pengrun Technology Trade and services 51 nt or
Shenzhen Shenzhen
investment
China, Hong China, Hong Establishme
29 Jiaxin Technology Trade and services 51
Kong Kong nt or
320
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
Beijing Konka
30 Beijing Beijing Sale of home appliance 100 nt or
Electronic
investment
Establishme
Tianjin Pilot Free Tianjin Pilot Free
31 Konka Leasing Service industry 100 nt or
Trade Zone Trade Zone
investment
Establishme
Guangdong, Guangdong,
32 Konka Circuit Manufacturing industry 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
33 Boluo Precision Manufacturing industry 100 nt or
Boluo Boluo
investment
Establishme
Guangdong, Guangdong,
34 Boluo Konka Manufacturing industry 100 nt or
Boluo Boluo
investment
Establishme
China, Hong China, Hong
35 Hong Kong Konka International trade 100 nt or
Kong Kong
investment
Establishme
China, Hong China, Hong
36 Hongdin Invest Investment holding 100 nt or
Kong Kong
investment
37 Chain Kingdom Memory China, Hong China, Hong International trade 51 Establishme
321
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Technologies Kong Kong nt or
investment
Chain Kingdom Memory Establishme
Guangdong, Guangdong,
38 Technologies Trade and services 51 nt or
Shenzhen Shenzhen
(Shenzhen) investment
Establishme
China, Hong China, Hong
39 Hongjet Trade and services 51 nt or
Kong Kong
investment
Establishme
China, Hong China, Hong
40 Hongdin Trading International trade 100 nt or
Kong Kong
investment
Establishme
41 Kanghao Technology Egypt, Cairo Egypt, Cairo International trade 67 nt or
investment
Establishme
America, America,
42 Konka North America International trade 100 nt or
California California
investment
Establishme
Guangdong, Guangdong,
43 Konka Investment Capital market services 100 nt or
Shenzhen Shenzhen
investment
Establishme
Yibin Konka Technology Industrial park development and operation
44 Sichuan, Yibin Sichuan, Yibin 100 nt or
Park management
investment
322
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Guangdong, Guangdong,
45 Konka Capital Capital market services 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
46 Konka Suiyong Business service industry 51 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
47 Shengxing Industrial Commercial services 51 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong, Software and information technology
48 Zhitong Technology 51 nt or
Shenzhen Shenzhen services
investment
Establishme
Guangdong, Guangdong,
49 Electronics Technology Manufacturing industry 100 nt or
Shenzhen Shenzhen
investment
Establishme
50 Anhui Zhilian Anhui, Chuzhou Anhui, Chuzhou e-Commerce 100 nt or
investment
Establishme
Guangdong, Guangdong, Software and information technology
51 Youzhihui 100 nt or
Shenzhen Shenzhen services
investment
Guangdong, Guangdong, Establishme
52 Xiaojia Technology Retail trade 100
Shenzhen Shenzhen nt or
323
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
53 Haimen Konka Jiangsu, Nantong Jiangsu, Nantong Trade and service 100 nt or
investment
Establishme
Sichuan, Sichuan,
54 Chengdu Konka Smart Trade and service 100 nt or
Chengdu Chengdu
investment
Establishme
Chengdu Konka Sichuan, Sichuan,
55 Manufacturing industry 100 nt or
Electronic Chengdu Chengdu
investment
Establishme
Zhongshan, Guangdong,
56 XingDa HongYe Manufacturing industry 51 nt or
Guangdong Zhongshan
investment
Establishme
57 Shanghai Xinfeng Shanghai Shanghai Trade and service 51 nt or
investment
Establishme
Liaoyang Kangshun Liaoyang, Liaoyang,
58 Wholesale 100 nt or
Smart Liaoning Liaoning
investment
Establishme
Liaoyang Kangshun Liaoyang, Liaoyang, Comprehensive utilization of renewable
59 100 nt or
Renewable Liaoning Liaoning resources
investment
60 Nanjing Konka Jiangsu, Nanjing Jiangsu, Nanjing Wholesale 100 Establishme
324
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
nt or
investment
Establishme
61 Yantai Laikang Shandong, Yantai Shandong, Yantai Commercial services 51 nt or
investment
Establishme
62 Konka Huanjia Dalian, Liaoning Dalian, Liaoning Renewable resources processing trade 51 nt or
investment
Establishme
63 Konka Huanjia (Henan) Henan, Lankao Henan, Lankao Renewable resource processing trade 51 nt or
investment
Establishme
64 Shanghai Konka Shanghai Shanghai Real estate 100 nt or
investment
Establishme
65 Yantai Kangjin Shandong, Yantai Shandong, Yantai Real estate 62.8 nt or
investment
Establishme
66 Jiangxi Konka Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing 51 nt or
investment
Establishme
Xinfeng Jiangxi, Jiangxi,
67 Manufacturing and processing 51 nt or
Microcrystalline Nanchang Nanchang
investment
325
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Jiangsu Konka Special
68 Jiangsu Yancheng Wholesale 51 nt or
Material
investment
Establishme
Guangdong, Guangdong,
69 Shenzhen Nianhua Commercial services 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
70 Shenzhen KONSEMI Semiconductors 100 nt or
Shenzhen Shenzhen
investment
Establishme
71 Hefei KONSEMI Anhui, Hefei Anhui, Hefei Integrated circuit design 51 nt or
investment
Establishme
72 Yihe Electronic Anhui, Hefei Anhui, Hefei Wholesale 51 nt or
investment
Establishme
Software and information technology
73 Chongqing Konka Chongqing Chongqing 100 nt or
services
investment
Establishme
Konka Guangdong, Guangdong,
74 Commercial services 51 nt or
Eco-Development Shenzhen Shenzhen
investment
Suining Konka Industrial Industrial park development and operation Establishme
75 Sichuan, Suining Sichuan, Suining 100
Park management nt or
326
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
76 Konka Ronghe Zhejiang, Jiaxing Zhejiang, Jiaxing Wholesale and retail trade 51 nt or
investment
Suining Electronic Establishme
77 Technological Sichuan, Suining Sichuan, Suining Commercial services 100 nt or
Innovation investment
Establishme
Shenzhen Chuangzhi Guangdong, Guangdong,
78 Wholesale 100 nt or
Electrical Appliances Shenzhen Shenzhen
investment
Kanghong (Yantai) Establishme
Comprehensive utilization of abandoned
79 Environmental Shandong, Yantai Shandong, Yantai 51 nt or
resources
Protection investment
Establishme
Recycling, processing and sales of
80 Chongqing Kangxingrui Chongqing Chongqing 51 nt or
renewable resources
investment
Establishme
Chongqing Kangxingrui Recycling, processing and sales of waste
81 Chongqing Chongqing 51 nt or
Automobile Recycling resources
investment
Chongqing
Establishme
Optoelectronic
82 Chongqing Chongqing Research & experiment development 75 nt or
Technology Research
investment
Institute
327
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Kowin Memory Guangdong, Guangdong, Computer, telecommunications and other
83 100 nt or
(Shenzhen) Shenzhen Shenzhen electronic equipment manufacturing
investment
Establishme
Konka Xinyun Yancheng, Yancheng, Computer, telecommunications and other
84 100 nt or
Semiconductor Jiangsu Jiangsu electronic equipment manufacturing
investment
Establishme
Jiangkang (Shanghai)
85 Shanghai Shanghai Research & experiment development 51 nt or
Technology
investment
Establishme
Ningbo Kanghr Electrical machinery and equipment
86 Zhejiang, Ningbo Zhejiang, Ningbo 60 nt or
Electrical Appliance manufacturing
investment
Establishme
Konka Intelligent Guangdong, Guangdong,
87 Research & experiment development 51 nt or
Manufacturing Shenzhen Shenzhen
investment
Establishme
88 Suining Jiarun Property Sichuan, Suining Sichuan, Suining Real estate 100 nt or
investment
Establishme
Ecological protection and environmental
89 Yibin Kangrun Yibin, Sichuan Yibin, Sichuan 67 nt or
governance industry
investment
90 Konka Material Hainan, Haikou Hainan, Haikou Commercial services 100
Establishme
nt or
328
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Jiangxi High Transparent
Substrate (formerly Establishme
91 known as Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing 51 nt or
“Nano-Grystallized investment
Glass”)
Establishme
Computer, telecommunications and other
92 Nantong Hongdin Jiangsu, Nantong Jiangsu, Nantong 100 nt or
electronic equipment manufacturing
investment
Establishme
93 Chuzhou Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 94.9 nt or
investment
Establishme
94 Xi'an Huasheng Shaanxi, Xi’an Shaanxi, Xi’an Real estate 100 nt or
investment
Establishme
95 Konka Soft Electronic Sichuan, Suining Sichuan, Suining Manufacturing industry 95 nt or
investment
Establishme
Konka Hongye
96 Sichuan, Suining Sichuan, Suining Manufacturing industry 90.1 nt or
Electronics
investment
Kowin Memory (Hong Wholesale of computers, software and Establishme
97 Hong Kong Hong Kong 100
Kong) auxiliary equipment nt or
329
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
Industrial and Trade Guangdong, Guangdong,
98 Wholesale 100 nt or
Technology Shenzhen Shenzhen
investment
Establishme
Hunan, Hunan,
99 Konka Huazhong Business service industry 100 nt or
Changsha Changsha
investment
Establishme
Ecological protection and environmental
100 Yibin Kangrun Medical Sichuan, Yibin Sichuan, Yibin 63.65 nt or
governance services
investment
Yibin Kangrun Establishme
Ecological protection and environmental
101 Environmental Sichuan, Yibin Sichuan, Yibin 40.87 nt or
governance services
Protection investment
Establishme
Shaanxi Konka Manufacture of household cleaning and
102 Shaanxi, Xi’an Shaanxi, Xi’an 51 nt or
Intelligent sanitary electrical appliances
investment
Establishme
103 Xi'an Feihe Shaanxi, Xi’an Shaanxi, Xi’an Catering 100 nt or
investment
Establishme
Chongqing Xinyuan Science and technology promotion and
104 Chongqing Chongqing 75 nt or
Semiconductor application services
investment
105 Jiangxi Konka Industrial Jiangxi, Jiujiang Jiangxi, Jiujiang Real estate 70 Establishme
330
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Park nt or
investment
Establishme
Ruichang Kangrui Real
106 Jiangxi, Jiujiang Jiangxi, Jiujiang Real estate 70 nt or
Estate
investment
Establishme
Industrial development
107 Hubei, Wuhan Hubei, Wuhan Commercial services 51 nt or
in Wuhan
investment
Establishme
Guangdong, Guangdong,
108 Kangxiaojia Digital Software and IT services 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
109 Kanghong Dongsheng Commercial services 95.09 nt or
Shenzhen Shenzhen
investment
Establishme
Yijiakang Smart Guangdong, Guangdong,
110 Software and IT services 100 nt or
Terminal Shenzhen Shenzhen
investment
Qiandongnan Qiandongnan
Miao and Dong Miao and Dong
Establishme
Guizhou Kangkai Autonomous Autonomous
111 Manufacturing and processing 51 nt or
Material Technology Prefecture, Prefecture,
investment
Guizhou Guizhou
Province Province
331
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Qiannan Miao Qiannan Miao
and Dong and Dong
Establishme
Guizhou Konka New Autonomous Autonomous
112 Manufacturing and processing 51 nt or
Material Technology Prefecture, Prefecture,
investment
Guizhou Guizhou
Province Province
Qiannan Miao Qiannan Miao
and Dong and Dong
Establishme
Guizhou Kanggui Autonomous Autonomous
113 Wholesale and retail 100 nt or
Energy Prefecture, Prefecture,
investment
Guizhou Guizhou
Province Province
Establishme
Lufeng, Lufeng,
114 Guangdong Xinwei Semiconductors 100 nt or
Guangdong Guangdong
investment
Establishme
Kangxinrui Renewable Recycling, processing and sales of
115 Chongqing Chongqing 51 nt or
Resources renewable resources
investment
Qiannan Miao Qiannan Miao
and Dong and Dong
Establishme
Guizhou Kanggui Autonomous Autonomous
116 Manufacturing and processing 70 nt or
Material Technology Prefecture, Prefecture,
investment
Guizhou Guizhou
Province Province
332
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Shareholding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Sichuan, Sichuan,
117 Sichuan Chengrui Real estate 80 nt or
Chengdu Chengdu
investment
Establishme
118 Chongqing Jiarun Chongqing Chongqing Real estate 80 nt or
investment
Establishme
119 Nantong Kanghai Jiangsu, Nantong Jiangsu, Nantong Real estate 51 nt or
investment
Establishme
120 Chongqing Kangyiyun Chongqing Chongqing Real estate 80 nt or
investment
(2) Significant Non-wholly-owned Subsidiary
Profit or loss
Shareholding
attributable to Declaring dividends
proportion of Ending balance of
Name minority distributed to minority
non-controlling minority interests
shareholders this shareholders this year
interests
year
Chain Kingdom Memory Technologies Co., 49.00% 8,186,550.75 69,037,221.99
333
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Limited
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Ending balance
Name Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Chain Kingdom
Memory Technologies 1,122,601,899.81 1,496,802.37 1,124,098,702.18 983,206,412.40 983,206,412.40
Co., Limited
(continued)
Opening balance
Name Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Chain Kingdom
Memory Technologies 1,222,933,011.37 515,766.12 1,223,448,777.49 1,095,464,158.88 1,095,464,158.88
Co., Limited
(continued)
Amount incurred in this year
Name Total comprehensive Cash flows from
Revenue Net profit
income operating activities
Chain Kingdom Memory Technologies Co.,
9,416,436,242.22 16,707,246.42 12,907,671.17 163,768,485.18
Limited
334
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(continued)
Amount incurred last year
Name Total comprehensive Cash flows from
Revenue Net profit
income operating activities
Chain Kingdom Memory Technologies Co.,
8,261,027,364.98 31,266,708.21 23,658,314.91 -66,646,309.67
Limited
335
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
2. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Shareholding Accounting
Regi percentage (%) treatment of
Main
strat the investment
operati Nature of
Name ion to joint
ng business Directl
plac Indirectly venture or
place y
e associated
enterprise
Dongfang
Konka No.1
(Zhuhai) Zhu Investment
Zhuhai - 49.95 Equity method
Private Equity hai management
Investment
Fund (LP)
Shenzhen
Professional
Jielunte Shenzh Shen
machinery - 42.79 Equity method
Technology en zhen
manufacturing
Co., Ltd.
(2) Main Financial Information of Significant Associated Enterprise
Ending balance/amount incurred this year
Item Dongfang Konka No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 945,498,650.28 273,102,104.88
Non-current assets - 220,186,531.13
Total assets 945,498,650.28 493,288,636.01
Current liabilities 730.00 258,379,870.36
Non-current liabilities - 18,381,235.37
Total liabilities 730.00 276,761,105.73
Equity of non-controlling interests - 9,047,500.16
Equity attributable to shareholders of
the Company as the parent 945,497,920.28 207,480,030.12
Net assets shares calculated at the
shareholding proportion 467,638,787.38 94,278,354.91
Adjusted items - -
- Goodwill - -
- Internal unrealized profit - -
- Others - -
336
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance/amount incurred this year
Item Dongfang Konka No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Carrying value of investment to
associated enterprises 467,638,787.38 94,278,354.91
Fair values of equity investments of
joint ventures with quoted prices - -
Revenue - 475,403,349.60
Financial expenses -517,521.24 5,058,668.75
Income tax expenses - -
Net profit 45,293,790.73 12,209,183.84
Net profit from discontinued
operations - -
Other comprehensive income - -
Total comprehensive income 45,293,790.73 12,209,183.84
Dividends received from the joint
venture in the current period - -
(continued)
Opening balance/amount incurred last year
Item Dongfang Konka No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 686,710,061.46 271,865,221.76
Non-current assets - 227,090,375.33
Total assets 686,710,061.46 498,955,597.09
Current liabilities 285,530.00 276,139,120.51
Non-current liabilities - 18,498,130.14
Total liabilities 285,530.00 294,637,250.65
Equity of non-controlling interests - 10,008,858.78
Equity attributable to shareholders of
the Company as the parent 686,424,531.46 194,309,487.66
Net assets shares calculated at the
shareholding proportion 336,170,619.84 83,145,029.77
Adjusted items - -
- Goodwill - -
- Internal unrealized profit - -
- Others - -
337
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Carrying value of investment to
associated enterprises 336,170,619.84 89,187,905.40
Fair values of equity investments of
joint ventures with quoted prices - -
Revenue - 430,517,695.83
Financial expenses -257,638.57 7,466,767.66
Income tax expenses - -
Net profit 84,878,495.25 6,140,227.28
Net profit from discontinued
operations - -
Other comprehensive income - -
Total comprehensive income 84,878,495.25 6,140,227.28
Dividends received from the joint
venture in the current period - -
(3) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Ending balance/Reporting Beginning balance/Same
Item Period period of last year
Associated enterprises:
Total carrying value of investment 3,617,582,425.90 3,249,236,533.91
The total of following items according
to the shareholding proportions
--Net profit -32,617,474.82 431,670.21
--Other comprehensive income 1,486,737.16 -335,456.79
--Total comprehensive income -31,130,737.66 96,213.42
IX. The Risk Related to Financial Instruments
The Company’s main financial instruments include borrowings, accounts receivable,
accounts payable, trading financial assets and liabilities, etc. Please refer to Note VI for detailed
descriptions of various financial instruments. Risks related to these financial instruments, and risk
management policies the Company has adopted to reduce these risks are described as follows.
The Company management manages and monitors the risk exposure in order to ensure the above
risks to be controlled in a limited scope.
1. Various Risk Management Objectives and Policies
The goals of the Company engaged in the risk management is to achieve the proper balance
between the risks and benefits, reduced the negative impact to the Company operating
338
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
performance risk to a minimum, maximized the profits of shareholders and other equity investors.
Based on the risk management goal, the basic strategy of the Company's risk management is
determine and analyze the various risks faced by the Company, set up the bottom line of risk and
conducted appropriate risk management, and timely supervised various risks in a reliable way and
controlled the risk within the range of limit.
(1) Market Risk
1) Foreign Exchange Risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in
exchange rate. The foreign exchange risk borne by the Company is related to USD. Except the
procurement and sales in USD of the Company's subsidiaries Hong Kong Konka, Hongdin
Trading, Chain Kingdom Memory Technologies, Hongjet and Jiali, the Company's other primary
business activities are settled in RMB. The currency risk arising from the assets and liabilities of
such balance in USD may affect the Group's operating results. As at December 31, 2021, the
Company's assets and liabilities were mainly the balance in RMB except for the assets or
liabilities of a balance in USD as listed below.
Item Ending balance Opening balance
Monetary Assets 104,127,945.47 95,989,561.32
Accounts Receivable 150,964,132.67 132,221,173.92
Other Receivables 97,035,927.80 135,938,277.17
Interests receivable - -
Short-term borrowings 89,678,741.45 59,159,714.38
Accounts payable 35,718,564.93 42,417,352.11
Interest payable 106,816.56 99,200.24
The company pays close attention to the impact of exchange rate changes on the company's
foreign exchange risk, and requires major companies in the group that purchase and sell in
foreign currency to pay attention to the changes in foreign currency assets and liabilities, manage
the group's foreign currency net asset exposure in a unified way, implement single currency
settlement, and reduce the scale of foreign currency assets and liabilities, so as to reduce foreign
exchange risk exposure.
2) Interest Rate Risk
The Company bears interest rate risk due to interest rate changes of interest-bearing financial
assets and liabilities. The Company's interest bearing financial assets are mainly bank deposits, of
which the variable interest rate is mostly short-term, while the interest bearing financial liabilities
are mainly bank loans and corporate bonds. The Company's long-term borrowings from banks
339
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
and corporation bonds are at fixed interest rates. The risk of cash flow changes of financial
instruments caused by interest rate changes is mainly related to short-term borrowings from banks
with floating interest rates. The Company's policy is to maintain the floating interest rates of such
borrowings to eliminate the fair value risk of interest rate changes. As at December 31, 2021, the
balance of such short-term borrowings was RMB9,920,675,121.08.
(2) Credit Risk
As at December 31, 2021, the maximum credit risk exposure that may cause financial losses
to the Company mainly came from losses generated from the Company's financial assets due to
failure of the other party in a contract to perform its obligations and the financial guarantee
undertaken by the Company, including:
The carrying amount of financial assets recognized in the consolidated balance sheet; for
financial instruments measured at fair value, the book value reflects their risk exposure, but not
the maximum risk exposure, and the maximum risk exposure will change with the change of
future fair value.
In order to reduce credit risk, the company has set up a group to determine the credit limit,
conduct credit approval, and implement other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition, the company reviews the recovery of
each single receivable on each balance sheet date to ensure that sufficient bad debt provision is
made for the unrecoverable amount. Therefore, the company's management believes that the
company's credit risk has been greatly reduced.
The company's working capital is deposited in banks with high credit rating, so the credit
risk of working capital is low.
The Company has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable, the
Company has no other major credit concentration risk. For the financial assets of the Company
that have been individually impaired, please refer to 4. Accounts Receivable and 7. Other
Receivables in Note VI.
(3) Liquidity Risk
Liquidity risk refers to the risk that the company is unable to fulfill its financial obligations
on the due date. The Company manages liquidity risk in the method of ensuring that there is
sufficient liquidity to fulfill debt obligations without causing unacceptable loss or damage to the
Company’s reputation. In order to mitigate the liquidity risk, the Management of the Company
has carried out a detailed inspection on the liquidity of the company, including the maturity of
340
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
accounts payable and other payables, bank credit line and bond financing. The conclusion is that
the Company has sufficient funds to meet the needs of the Group's short-term debts and capital
expenditure.
The analysis of the financial assets and financial liabilities held by the Company based on
the maturity period of the undiscounted remaining contractual obligations is as follows:
341
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount as at December 31, 2021:
Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets
Monetary Assets 6,489,553,211.24 6,489,553,211.24
Trading Financial Assets
Notes Receivable 1,777,477,481.28 1,777,477,481.28
Accounts Receivable 2,545,971,668.54 235,342,241.13 616,415,571.40 3,397,729,481.07
Other Receivables 924,516,397.19 470,258,621.48 437,099,206.98 5,585,479.99 1,837,459,705.64
Long-term Receivables 18,495,499.14 18,495,499.14
Other Current Assets 2,299,963,391.24 2,299,963,391.24
Financial liabilities
Short-term borrowings 9,920,675,121.08 9,920,675,121.08
Notes payable 1,116,336,958.91 1,116,336,958.91
Accounts payable 3,479,614,154.99 187,662,627.95 116,372,165.57 666,142.90 3,784,315,091.41
Other payables 1,227,053,185.80 341,685,100.85 198,495,865.33 20,943,596.61 1,788,177,748.59
Payroll payable 410,747,084.80 410,747,084.80
Non-current liabilities due
5,089,586,269.32 5,089,586,269.32
within one year
Long-term borrowings 678,762,768.40 2,850,377,770.69 3,529,140,539.09
Bonds Payable 2,293,698,899.30 2,293,698,899.30
Long-term payables 140,687,570.78 140,687,570.78
342
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
2.Sensitivity analysis
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable
and possible changes of risk variables on current profits/losses or shareholders’ equity. As any risk
variable rarely changes in isolation, and the correlation between variables will have a significant effect
on the final impact amount of the change of a risk variable, the following content is based on the
assumption that the change of each variable is independent.
(1) Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow
hedging of overseas operations are highly effective.
On the basis of the above assumption, under the condition that other variables remain unchanged,
the impact of reasonable changes in the exchange rate on current profits/losses and equity after tax is
as follows:
2021
Exchange rate
Item Impact on shareholders'
fluctuations Impact on net profit
equity
Appreciation of 1%
USD 12,853,238.99 8,701,675.59
against RMB
Depreciation of 1%
USD -12,853,238.99 -8,701,675.59
against RMB
(2) Sensitivity Analysis of Interest Rate Risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments
with variable interest rates;
For financial instruments with fixed interest rates measured at fair value, market interest rate
changes affect only their interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets and
liabilities are calculated at the market interest rate on the balance sheet date by discounted cash flow.
On the basis of the above assumptions and under the condition that other variables remain
unchanged, the impact of reasonable changes in the interest rate on current profits/losses and equity
after tax is as follows:
2021
Interest rate
Item Impact on shareholders'
fluctuations Impact on net profit
equity
343
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Borrowings at
floating interest Up 0.5% 37,933,596.24 37,001,565.94
rates
Borrowings at
floating interest Down 0.5% -37,933,596.24 -37,001,565.94
rates
344
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
X. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Ending fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value measurement -- -- -- --
i. Trading Financial Assets
1. Financial assets measured at fair value through profit and loss for
the current period
(II) Accounts receivable financing 71,490,688.54 71,490,688.54
(II) Other equity investments
(III) Other equity instrument investment 23,841,337.16 23,841,337.16
(IV) Investment properties
(V) Biological assets
(V) Other non-current financial assets 2,293,361,603.68 2,293,361,603.68
345
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
The total amount of assets consistently measured at fair value 71,490,688.54 2,317,202,940.84 2,388,693,629.38
Total amount of liabilities at fair value
II. Inconsistent fair value measurement -- -- -- --
Total assets of inconsistent fair value measurement
Total liabilities of inconsistent fair value measurement
346
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
2. 2Basis for Determining the Market Prices of Consistent and Inconsistent Fair Value
Measurement Items at Level 1
Input value at Level 1 is the unadjusted quotation in the active market of the same assets or
liabilities that can be obtained on the measurement date.
3. Valuation Technique Adopted and Qualitative and Quantitative Information of
Important Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 2
The Level 2 fair value measurement of input value at Level 2 is the input value observable
directly or indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Valuation Technique Adopted and Qualitative and Quantitative Information of
Important Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 3
Input value at Level 3 is the input value unobservable of relevant assets or liabilities.
XI. Related Party and Related-party Transaction
(I) Relationship of Related Party
1. Controlling Shareholder and the Ultimate Controller
(1) Controlling Shareholder and the Ultimate Controller
Sharehol Voting
Registrat Nature of Registere ding right
Name
ion place business d capital ratio to ratio to
the the
Compan Compan
Tourism,
y (%) y (%)
real estate, RMB12
OCT Group Co. Ltd. Shenzhen 29.999997 29.999997
electronics billion
industry
Note: The ultimate controller of the Company is State-owned Assets Supervisor Commission of
the State Council.
(2) The Registered Capital of the Controlling Shareholder and its Changes
347
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Opening balance Increase Decrease Ending balance
Controlling
in this in this
shareholders
year year
OCT Group Co. Ltd. 12,000,000,000.00 - - 12,000,000,000.00
(3) Controlling Shareholders’ Shares or Equity and their Changes
Shareholding amount Shareholding percentage
(%)
Controlling
Ending balance Opening Ending Opening
shareholders
balance percentag percentage
e
OCT Group Co. Ltd. 722,383,542.00 722,383,542.00 29.999997 29.999997
2. Subsidiary
Refer to note VIII-1. (1) Subsidiaries for the information of subsidiaries.
3. Associated Enterprises and Joint Ventures
Refer to Note VIII-2. (1) Significant Associated Enterprises for details of significant
associated enterprises of the Company. Information on other joint ventures or associated
enterprises occurring connected transactions with the Company in Reporting Period, or forming
balance due to connected transactions made in previous period:
Name Relationship with the Company
Anhui Kaikai Shijie E-commerce Co., Ltd. Associate
Binzhou Beihai Weiqiao Solid Waste Treatment
Associate
Co., Ltd.
Chuzhou Kangxin Health Industry Development
Associate
Co., Ltd.
Chutian Dragon Co., Ltd. Associate
Orient Excellent (Zhuhai) Asset Management
Associate
Co., Ltd.
Dongguan Konka Investment Co., Ltd. Associate
Dongguan Kangjia New Materials Technology
Associate
Co., Ltd.
348
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Name Relationship with the Company
Dongguan Kangzhihui Electronics Co., Ltd. Associate
Feidi Technology (Shenzhen) Co., Ltd. Associate
Henan Kangfei Intelligent Electrical Appliances
Associate
Co., Ltd.
Puchuang Jiakang Technology Co, Ltd. Associate
Shandong Kangfei Intelligent Electrical
Associate
Appliances Co., Ltd.
Shenzhen Jielunte Technology Co., Ltd. Associate
Shenzhen Kanghongxing Smart Technology Co.,
Associate
Ltd.
Shenzhen Konda E-display Co., Ltd. Associate
Shenzhen Kangying Semiconductor Technology
Associate
Co., Ltd.
Shenzhen Konka Jiapin Intelligent Electrical
Associate
Apparatus Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. Associate
Shenzhen E2info Network Technology Co., Ltd. Associate
Sichuan Aimijiakang Technology Co., Ltd. Associate
Sichuan Huayi Jiakang Technology Co., Ltd. Associate
KK Smartech Limited Associate
Yantai Kangyun Industrial Development Co.,
Associate
Ltd.
E3info (Hainan) Technology Co., Ltd. Associate
Shandong Econ Technology Co., Ltd. Associate
Chongqing Qingjia Electronics Co., Ltd. Associate
4. Information on Other Related Parties
Name Relationship with the Company
HOHOELECTRICAL&FURNITURECO.,
Minority shareholder of subsidiary
LIMITED
349
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Name Relationship with the Company
Chuzhou Hanshang Electric Appliance Co.,
Minority shareholder of subsidiary
Ltd.
Chuzhou State-owned Assets Management
Minority shareholder of subsidiary
Co., Ltd.
Dai Yaojin Minority shareholder of subsidiary
Guangdong Wanrun Tongheng Cultural &
Minority shareholder of subsidiary
Tourism Development Co., Ltd.
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
Korea Electric Group Co., Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Huanjia Group Co., Ltd. Minority shareholder of subsidiary
Liang Ruiling Minority shareholder of subsidiary
Shenzhen Guoxin Micro-electronics Co.,
Minority shareholder of subsidiary
Ltd.
Shenzhen Henglongtong Technology Co.,
Minority shareholder of subsidiary
Ltd.
Shenzhen Unifortune Supply Chain
Minority shareholder of subsidiary
Management Co., Ltd.
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Yantai Baijiangyuan Enterprise
Minority shareholder of associates
Management Center (Limited Partnership)
Yantai Fengqingtai Investment Center
Minority shareholder of associates
(Limited Partnership)
Yantai Qingjiangchuan Business
Minority shareholder of associates
Management Center (Limited Partnership)
Yantai Qingrunyuan Enterprise
Minority shareholder of associates
Management Center (Limited Partnership)
Yudong Environmental Protection
Minority shareholder of subsidiary
Technology Co., Ltd.
350
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Name Relationship with the Company
Chongqing Liangshan Industrial Investment
Minority shareholder of subsidiary
Co., Ltd.
Zhu Xinming Minority shareholder of subsidiary
A company controlled by minority shareholder of
Unifortune (Hong Kong) Co., Ltd. subsidiary
Chongqing Ruiyin Renewable Resources The ultimate controller of the minority
Co., Ltd. shareholders of the subsidiary
The company controlled by the ultimate controller
Jiangxi Meiji Enterprise Co., Ltd. of the minority shareholders of the subsidiary
Dai Rongxing Close family members of minority shareholders
Yantai Kangyue Investment Co., Ltd. Subsidiary of associated enterprise
Chongqing Lanlv Moma Real Estate
Subsidiary of associated enterprise
Development Co., Ltd.
(II) Related-party Transactions
1.Related-party transactions of purchase and sale of goods, provision and acceptance of
services
(1) Purchasing goods/receiving services
Amount incurred Amount incurred last
Related party Content
in this year year
Purchase
Chongqing Ruiyin Renewable Resources of goods
2,272,578,727.02 1,364,898,749.95
Co., Ltd. and its subsidiaries and
services
Chuzhou Hanshang Electric Appliance Purchasing
677,309,389.23 698,636,167.54
Co., Ltd. goods
Purchasing
Puchuang Jiakang Technology Co, Ltd. 240,633,703.30 373,695,088.37
goods
Shenzhen Jielunte Technology Co., Ltd.
Purchasing
and its subsidiaries as well as its 72,163,184.57 90,173,202.26
goods
associated enterprises
Korea Electric Group Co., Ltd. and its Purchasing
55,836,238.79
subsidiaries goods
351
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount incurred Amount incurred last
Related party Content
in this year year
OCT Group Co., Ltd. and its subsidiaries Purchase
55,547,081.78 31,079,892.62
and associates of services
Shenzhen Konda E-display Co., Ltd.
Purchasing
(formerly known as Shenzhen Konda 46,107,911.06 13,372,446.76
goods
E-display Commercial Screen Co., Ltd.)
Dongguan Konka Smart Electronic Purchase
Technology Co., Ltd. (formerly known as of goods
23,557,646.94 15,988,606.86
Dongguan Konka Electronic Smart and
Technology Co., Ltd.) services
HOHOELECTRICAL&FURNITURECO. Purchasing
22,211,733.88 50,041,528.06
,LIMITED goods
Purchase
Anhui Kaikai Shijie E-commerce Co., of goods
12,374,579.16 306,706.67
Ltd. and its subsidiaries and
services
Purchasing
KK Smartech Limited 10,780,582.86
goods
Orient Excellent (Zhuhai) Asset Purchase
8,421,613.00
Management Co., Ltd. of services
Shenzhen Kangying Semiconductor Purchasing
8,227,826.34
Technology Co., Ltd. goods
Purchase
E3info (Hainan) Technology Co., Ltd. and of goods
110,324.70 5,006,164.56
its subsidiaries and
services
Purchase
of goods
Subtotal of other related parties 4,226,348.93 82,475,970.70
and
services
(2) Information of sales of goods and provision of labor service
Content Amount incurred Amount incurred
Related party
in this year last year
Korea Electric Group Co., Ltd. and its Sales of
279,074,296.50
subsidiaries goods
Sales of
Goods and
Chuzhou Hanshang Electric Appliance
Provision 192,124,416.17 47,780,642.42
Co., Ltd.
of Labor
Service
352
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Content Amount incurred Amount incurred
Related party
in this year last year
Sales of
Goods and
OCT Group Co., Ltd. and its
Provision 144,139,658.68 112,863,678.04
subsidiaries and associates
of Labor
Service
Sales of
Goods and
Anhui Kaikai Shijie E-commerce Co.,
Provision 103,201,296.73 443,843,708.04
Ltd. and its subsidiaries
of Labor
Service
Sales of
Goods and
Sichuan Huayi Jiakang Technology
Provision 70,997,038.78
Co., Ltd.
of Labor
Service
Sales of
Shandong Kangfei Intelligent Electrical
Goods and
Appliances Co., Ltd. (formerly known
Provision 63,427,905.20 47,720,206.98
as Shandong Konka Zhijia Electrical
of Labor
Appliances Co., Ltd.)
Service
Sales of
Shenzhen Jielunte Technology Co., Ltd. Goods and
and its subsidiaries as well as its Provision 52,708,375.55 66,305,912.40
associated enterprises of Labor
Service
HOHOELECTRICAL&FURNITURE Sales of
49,653,058.20 115,451,594.04
CO.,LIMITED Goods
Sales of
Henan Kangfei Intelligent Electrical
Goods and
Appliances Co., Ltd. (formerly known
Provision 49,621,167.82 35,730,677.80
as Henan Konka Zhijia Electrical
of Labor
Appliances Co., Ltd.)
Service
353
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Content Amount incurred Amount incurred
Related party
in this year last year
Sales of
Shenzhen Konda E-display Co., Ltd.
Goods and
(formerly known as Shenzhen Konda
Provision 43,781,944.59 33,606,160.84
E-display Commercial Screen Co.,
of Labor
Ltd.)
Service
Sichuan Aimijiakang Technology Co., Sales of
28,278,036.50
Ltd. Goods
Sales of
Dongguan Konka Smart Electronic
goods and
Technology Co., Ltd. (formerly known
render 28,080,693.48 22,454,105.62
as Dongguan Konka Electronic Smart
labor
Technology Co., Ltd.)
service
Sales of
goods and
E3info (Hainan) Technology Co., Ltd.
render 9,540,876.11 17,158,367.26
and its subsidiaries
labor
service
Yantai Kangyun Industrial Render
Development Co., Ltd. and its labor 5,660,377.20
subsidiaries service
Shenzhen Konka Jiapin Intelligent
Render
Electrical Apparatus Co., Ltd. (formerly
labor 3,272,741.19 75,623,621.40
known as Shenzhen Konka Intelligent
service
Electrical Apparatus Co., Ltd.)
Sales of
Shenzhen Yaode Technology Co., Ltd. 32,701,728.34
Goods
Sales of
Goods and
Subtotal of other related parties Provision 12,771,623.73 23,376,249.99
of Labor
Service
1. Information on Related-party Lease
354
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(1) Lease situation
Category of Lease fee
Lease fee
Name of lessor Name of lessee leased recognized
recognized last year
assets this year
Commercial
OCT Group Co.,
Konka Group Co., residences
Ltd. and its 1,571,011.20 1,793,893.44
Ltd. and office
subsidiaries
buildings
Commercial
OCT Group Co., Konka Ventures
residences
Ltd. and its Development 21,435,068.58 25,095,479.94
and office
subsidiaries (Shenzhen) Co., Ltd.
buildings
2. Information on Related-party Guarantee
(1) The Company was guarantor
Actual
Contracted
guarantee Execution
guarantee Curr Start
Secured party amount End date accomplish
amount ency date
(RMB10,0 ed or not
(RMB10,000)
00)
Ningbo Kanghr 2,400.00
2020-10-1
Electrical 6,000.00 CNY 2022-7-26 No
5
Appliance
Ningbo Kanghr 600.00
Electrical 6,000.00 CNY 2021-7-12 2022-7-11 No
Appliance
Kunshan
Kangsheng
Investment 24,500.00 2,450.00 CNY 2019-9-23 2022-9-22 No
Development
Co., Ltd.
Anhui 3,000.00
3,000.00 CNY 2020-8-6 2021-8-5 No
Tongchuang
Anhui 4,400.00
5,000.00 CNY 2021-1-21 2022-1-20 No
Tongchuang
Anhui 4,500.00
4,500.00 CNY 2021-2-25 2022-2-25 No
Tongchuang
Anhui -
3,500.00 CNY 2021-5-12 2022-3-28 No
Tongchuang
355
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Actual
Contracted
guarantee Execution
guarantee Curr Start
Secured party amount End date accomplish
amount ency date
(RMB10,0 ed or not
(RMB10,000)
00)
Anhui 5,000.00
6,000.00 CNY 2021-7-16 2022-7-16 No
Tongchuang
Anhui - 2021-10-2
3,000.00 CNY 2022-10-27 No
Tongchuang 8
Dongguan 5,000.00
5,000.00 CNY 2021-2-8 2022-2-1 No
Konka
Dongguan 11,739.87
80,000.00 CNY 2021-6-23 2031-5-7 No
Konka
Electronics 6,936.55 2021-10-1
7,000.00 CNY 2022-11-14 No
Technology 8
Electronics 50,000.00
50,000.00 CNY 2021-11-5 2022-7-16 No
Technology
Econ 4,015.11
24,000.00 CNY 2021-8-11 2022-1-21 No
Technology
Econ 3,000.00
3,000.00 CNY 2021-1-29 2022-1-28 No
Technology
Econ 5,000.00
5,000.00 CNY 2021-3-24 2022-3-23 No
Technology
Econ 8,000.00
8,800.00 CNY 2021-6-8 2022-6-7 No
Technology
Econ 5,000.00
5,000.00 CNY 2021-6-18 2022-6-17 No
Technology
Econ 9,000.00
10,000.00 CNY 2021-6-28 2022-6-27 No
Technology
Telecommunicat 4,009.92
7,500.00 CNY 2021-4-30 2022-4-30 No
ion Technology
Sichuan Konka 4,000.00 4,000.00 CNY 2019-3-18 2022-3-17 No
Yibin OCT
Sanjiang
14,000.00 6,258.00 CNY 2019-9-29 2022-9-28 No
Properties Co.,
Ltd.
5,452.00 2020-11-1
XingDa HongYe 5,800.00 CNY 2022-11-12 No
2
1,441.56 2020-12-2
XingDa HongYe 2,000.00 CNY 2023-12-25 No
5
XingDa HongYe 1,250.00 - CNY 2021-5-31 2023-8-31 No
XingDa HongYe 750.00 620.54 CNY 2021-5-31 2023-8-31 No
Boluo Precision 2,480.11 1,341.67 CNY 2020-8-19 2023-8-19 No
Jiangxi Konka 5,500.00 1,365.44 CNY 2019-6-26 2022-6-25 No
356
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Actual
Contracted
guarantee Execution
guarantee Curr Start
Secured party amount End date accomplish
amount ency date
(RMB10,0 ed or not
(RMB10,000)
00)
2,148.36 2019-10-3
Jiangxi Konka 6,500.00 CNY 2022-10-30 No
0
Jiangxi Konka 990.00 990.00 CNY 2020-3-20 2022-3-19 No
Jiangxi Konka 6,000.00 5,000.00 CNY 2021-6-26 2022-6-25 No
Jiangxi Konka 10,000.00 6,662.79 CNY 2020-9-29 2023-9-29 No
Jiangxi Konka 10,000.00 3,000.00 CNY 2020-11-6 2023-12-1 No
4,800.00 2020-12-2
Jiangxi Konka 5,000.00 CNY 2022-12-31 No
1
660.92 2020-12-3
Jiangxi Konka 1,000.00 CNY 2023-12-30 No
0
Xinfeng 2,564.39
5,000.00 CNY 2020-5-19 2023-5-19 No
Microcrystalline
Xinfeng 1,316.61
3,478.85 CNY 2020-5-29 2022-11-29 No
Microcrystalline
Xinfeng 1,398.92
2,100.00 CNY 2020-12-8 2023-12-8 No
Microcrystalline
Xinfeng 6,000.00 2021-12-2
7,200.00 CNY 2022-12-26 No
Microcrystalline 7
Xinfeng 3,000.00
7,200.00 CNY 2021-6-18 2022-6-21 No
Microcrystalline
Jiangxi High
Transparent
Substrate
(formerly known 10,000.00 2,070.17 CNY 2019-6-26 2022-6-26 No
as
“Nano-Grystalli
zed Glass”)
Jiangxi High
Transparent
Substrate
2019-12-2
(formerly known 5,000.00 1,744.17 CNY 2022-12-20 No
0
as
“Nano-Grystalli
zed Glass”)
Jiangxi High
Transparent
Substrate
(formerly known 5,000.00 2,159.39 CNY 2020-1-8 2023-1-8 No
as
“Nano-Grystalli
zed Glass”)
357
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Actual
Contracted
guarantee Execution
guarantee Curr Start
Secured party amount End date accomplish
amount ency date
(RMB10,0 ed or not
(RMB10,000)
00)
Jiangxi High
Transparent
Substrate
(formerly known 5,000.00 1,282.19 CNY 2020-1-8 2022-1-8 No
as
“Nano-Grystalli
zed Glass”)
Jiangxi High
Transparent
Substrate
(formerly known 990.00 990.00 CNY 2020-3-20 2022-3-19 No
as
“Nano-Grystalli
zed Glass”)
Jiangxi High
Transparent
Substrate
(formerly known 5,975.00 2,199.20 CNY 2020-5-29 2022-11-29 No
as
“Nano-Grystalli
zed Glass”)
Jiangxi High
Transparent
Substrate
(formerly known 6,000.00 3,407.88 CNY 2020-7-14 2023-7-14 No
as
“Nano-Grystalli
zed Glass”)
Hong Kong 3,056.58 2020-12-2
20,000.00 CNY 2021-9-9 No
Konka 8
Hong Kong 9,882.34
11,000.00 CNY 2021-9-8 2021-11-6 No
Konka
Hong Kong 1,500.00
1,500.00 USD 2021-2-26 2022-2-26 No
Konka
7,000.00 2020-11-2
Anhui Konka 10,000.00 CNY 2021-11-24 No
5
Anhui Konka 20,000.00 12,180.00 CNY 2021-3-25 2022-3-25 No
Anhui Konka 5,500.00 2,984.65 CNY 2021-4-2 2022-4-2 No
Anhui Konka 12,000.00 3,973.36 CNY 2021-4-25 2022-4-25 No
Anhui Konka 28,000.00 4,027.99 CNY 2021-8-10 2031-7-15 No
5,000.00 2021-10-2
Anhui Konka 7,000.00 CNY 2026-10-28 No
9
358
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Actual
Contracted
guarantee Execution
guarantee Curr Start
Secured party amount End date accomplish
amount ency date
(RMB10,0 ed or not
(RMB10,000)
00)
10,000.00 2020-11-1
Yibin Kangrun 10,000.00 CNY 2024-12-31 No
3
Sichuan Konka 14,000.00 10,000.00 CNY 2018-5-28 2025-5-24 No
Sichuan Konka 28,771.89 - CNY 2021-12-3 2025-5-24 No
Konka Circuit 20,000.00 11,109.70 CNY 2021-5-24 2024-11-30 No
Mobile 5,000.00
5,000.00 CNY 2021-8-11 2022-8-11 No
Interconnection
Konka Xinyun 6,000.00
20,000.00 CNY 2021-7-12 2022-7-11 No
Semiconductor
Anhui Electrical 12,500.00
13,500.00 CNY 2020-7-3 2023-7-1 No
Appliance
Boluo Precision 12,449.00 2,495.22 CNY 2021-7-6 2023-7-5 No
Boluo Precision 500.00 500.00 CNY 2021-6-28 2022-6-27 No
Liaoyang 2,000.00 2021-12-2
2,000.00 CNY 2022-12-22 No
Kangshun Smart 3
(2) The Company was secured party
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplish
(RMB’0,000) y ed or not
CN
Electronics Technology 50,000.00 2021-8-17 2022-8-16 No
Y
CN
OCT Group Co. Ltd. 150,000.00 2020-6-22 2022-6-22 No
Y
CN
OCT Group Co. Ltd. 50,000.00 2020-6-24 2022-6-24 No
Y
CN
OCT Group Co. Ltd. 100,000.00 2021-1-8 2024-1-8 No
Y
CN
OCT Group Co. Ltd. 50,000.00 2021-5-21 2024-5-21 No
Y
CN
OCT Group Co. Ltd. 80,000.00 2021-7-9 2024-7-9 No
Y
CN
OCT Group Co. Ltd. 150,000.00 2019-1-14 2022-1-14 No
Y
CN
OCT Group Co. Ltd. 50,000.00 2019-6-3 2022-6-3 No
Y
CN
OCT Group Co. Ltd. 70,000.00 2019-7-22 2022-7-22 No
Y
359
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplish
(RMB’0,000) y ed or not
CN
OCT Group Co. Ltd. 150,000.00 2021-6-24 2024-6-23 No
Y
Yantai Baijiangyuan
Business Management
Center (LP), Yantai
Fengqingtai Investment
Center (LP), Yantai CN
1,967.40 2021-8-11 2022-1-21 No
Qingrunyuan Business Y
Management Center (LP),
Yantai Qingjiangchuan
Business Management
Center (LP)
Yantai Baijiangyuan
Business Management
Center (LP), Yantai
Fengqingtai Investment
Center (LP), Yantai CN
1,470.00 2021-1-29 2022-1-28 No
Qingrunyuan Business Y
Management Center (LP),
Yantai Qingjiangchuan
Business Management
Center (LP)
Yantai Baijiangyuan
Business Management
Center (LP), Yantai
Fengqingtai Investment
Center (LP), Yantai CN
2,450.00 2021-3-24 2022-3-23 No
Qingrunyuan Business Y
Management Center (LP),
Yantai Qingjiangchuan
Business Management
Center (LP)
Yantai Baijiangyuan
Business Management
Center (LP), Yantai
Fengqingtai Investment
Center (LP), Yantai CN
3,920.00 2021-6-8 2022-6-7 No
Qingrunyuan Business Y
Management Center (LP),
Yantai Qingjiangchuan
Business Management
Center (LP)
360
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplish
(RMB’0,000) y ed or not
Yantai Baijiangyuan
Business Management
Center (LP), Yantai
Fengqingtai Investment
Center (LP), Yantai CN
2,450.00 2021-6-18 2022-6-17 No
Qingrunyuan Business Y
Management Center (LP),
Yantai Qingjiangchuan
Business Management
Center (LP)
Yantai Baijiangyuan
Business Management
Center (LP), Yantai
Fengqingtai Investment
Center (LP), Yantai CN
4,410.00 2021-6-28 2022-6-27 No
Qingrunyuan Business Y
Management Center (LP),
Yantai Qingjiangchuan
Business Management
Center (LP)
Hu Zehong, Liang Ruiling, CN
2,671.48 2020-11-12 2022-11-12 No
Dai Yaojin Y
Hu Zehong, Liang Ruiling, CN
706.37 2020-12-25 2023-12-25 No
Dai Yaojin Y
Hu Zehong, Liang Ruiling, CN
304.07 2021-5-31 2023-8-31 No
Dai Yaojin Y
Jiangxi Xinzixin Real CN
669.07 2019-6-26 2022-6-25 No
Estate Co., Ltd. Y
Jiangxi Xinzixin Real CN
1,052.70 2019-10-30 2022-10-30 No
Estate Co., Ltd. Y
Jiangxi Xinzixin Real CN
485.10 2020-3-20 2022-3-19 No
Estate Co., Ltd. Y
Jiangxi Xinzixin Real CN
2,450.00 2021-6-26 2022-6-25 No
Estate Co., Ltd. Y
Jiangxi Xinzixin Real CN
3,264.77 2020-9-29 2023-9-29 No
Estate Co., Ltd. Y
CN
Zhu Xinming 1,470.00 2020-11-6 2023-12-1 No
Y
Jiangxi Xinzixin Real CN
2,352.00 2020-12-21 2022-12-31 No
Estate Co., Ltd. Y
CN
Zhu Xinming 323.85 2020-12-30 2023-12-30 No
Y
Jiangxi Xinzixin Real 1,256.55 CN 2020-5-19 2023-5-19 No
361
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplish
(RMB’0,000) y ed or not
Estate Co., Ltd. Y
Jiangxi Xinzixin Real CN
645.14 2020-5-29 2022-11-29 No
Estate Co., Ltd. Y
CN
Zhu Xinming 685.47 2020-12-8 2023-12-8 No
Y
CN
Zhu Xinming 2,940.00 2021-12-27 2022-12-26 No
Y
Jiangxi Xinzixin Real CN
1,470.00 2021-6-18 2022-6-21 No
Estate Co., Ltd. Y
Jiangxi Xinzixin Real CN
1,014.38 2019-6-26 2022-6-26 No
Estate Co., Ltd. Y
CN
Zhu Xinming 854.64 2019-12-20 2022-12-20 No
Y
CN
Zhu Xinming 1,058.10 2020-1-8 2023-1-8 No
Y
CN
Zhu Xinming 628.27 2020-1-8 2022-1-8 No
Y
Jiangxi Xinzixin Real CN
485.10 2020-3-20 2022-3-19 No
Estate Co., Ltd. Y
Jiangxi Xinzixin Real CN
1,077.61 2020-5-29 2022-11-29 No
Estate Co., Ltd. Y
CN
Zhu Xinming 1,669.86 2020-7-14 2023-7-14 No
Y
Chuzhou State-owned
CN
Assets Management Co., 1,540.00 2020-11-25 2021-11-24 No
Y
Ltd.
Chuzhou State-owned
CN
Assets Management Co., 2,679.60 2021-3-25 2022-3-25 No
Y
Ltd.
Chuzhou State-owned
CN
Assets Management Co., 656.62 2021-4-2 2022-4-2 No
Y
Ltd.
Chuzhou State-owned
CN
Assets Management Co., 874.14 2021-4-25 2022-4-25 No
Y
Ltd.
Chuzhou State-owned
CN
Assets Management Co., 886.16 2021-8-10 2031-7-15 No
Y
Ltd.
Chuzhou State-owned
CN
Assets Management Co., 1,100.00 2021-10-29 2026-10-28 No
Y
Ltd.
Shandong Econ 3,300.00 CN 2020-11-13 2024-12-31 No
362
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplish
(RMB’0,000) y ed or not
Technology Co., Ltd. Y
Chuzhou Hanshang
CN
Electric Appliance Co., 989.45 2021-5-31 2022-5-19 No
Y
Ltd.
Chuzhou Hanshang
CN
Electric Appliance Co., 3,544.51 2021-6-1 2022-5-19 No
Y
Ltd.
Hu Zehong, Liang Ruiling, CN
7,349.02 2018-7-1 2025-12-31 No
Dai Yaojin Y
Konka Ventures
CN
Development (Shenzhen) 1,322.54 2020-12-16 2021-12-15 No
Y
Co., Ltd.
Shenzhen Guoxin CN
4,100.44 2019-8-22 2022-12-31 No
Micro-electronics Co., Ltd. Y
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd.,
CN
Huaying Gaokede 1,041.09 2018-1-1 2021-12-31 No
Y
Electronics Technology
Co., Ltd., Huaying
Gaokelong Electronics
Technology Co., Ltd.
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd.,
Huaying Gaokede
CN
Electronics Technology 735.00 2018-1-1 2021-12-31 No
Y
Co., Ltd., Huaying
Gaokelong Electronics
Technology Co., Ltd.,
Shenzhen Baili Yongxing
Technology Co., Ltd.
Suiyong Rongxin Asset CN
5,292.00 2018-1-1 2022-12-31 No
Management Co., Ltd. Y
Yuan Shengxiang, Yudong
CN
Environmental Protection 8,820.00 2020-8-19 2025-10-31 No
Y
Technology Co., Ltd.
CN
Zhu Xinming 2,200.20 2021-2-9 2022-3-8 No
Y
CN
Zhu Xinming 13,249.19 2021-2-19 2022-2-18 No
Y
Zhu Xinming 8,330.00 CN 2021-11-1 2022-2-28 No
363
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplish
(RMB’0,000) y ed or not
Y
CN
Zhu Xinming 12,446.00 2021-11-2 2022-10-14 No
Y
AUJET INDUSTRY US
3,316.81 2021-5-1 2023-12-31 No
LIMITED D
AUJET INDUSTRY US
1,029.00 2020-9-1 2023-12-31 No
LIMITED D
Guizhou Huajinrun
Technology Co. Ltd.,
Guizhou Jiaguida
US
Technology Co., Ltd., 879.80 2018-1-1 2021-12-31 No
D
Guangan Ouqishi
Electronic Technology Co.,
Ltd.
Shenzhen Unifortune
US
Supply Chain Management 1,869.84 2021-6-21 2022-12-31 No
D
Co., Ltd.
Shenzhen Unifortune
US
Supply Chain Management 1,112.30 2021-6-22 2022-12-31 No
D
Co., Ltd.
Wu Guoren and Xiao US
6,933.50 2019-12-31 2024-12-31 No
Yongsong D
3. Borrowings of Funds
Curre Maturity
Name of related parties Amount Start date
ncy date
Borrowing:
OCT Group Co. Ltd. 10,910,000.00 CNY 2020-12-7 2022-12-9
OCT Group Co. Ltd. 1,000,000,000.00 CNY 2021-10-9 2024-2-25
OCT Group Co. Ltd. 200,000,000.00 CNY 2021-11-16 2024-2-25
E3info (Hainan)
50,000,000.00 CNY 2021-12-5 2022-6-4
Technology Co., Ltd.
Chuzhou Hanshang 105,350,000.00
Electric Appliance Co., CNY 2021-2-1 2022-1-31
Ltd.
1,366,260,000.00
Total
Lending:
Chongqing Lanlv Moma
Real Estate Development 188,430,000.00 CNY 2020-11-25 2021-11-24
Co., Ltd.
364
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Yantai Kangyue 128,527,000.00 CNY 2021-12-16 2022-12-15
Investment Co., Ltd.
Chuzhou Kangxin Health
Industry Development 152,880,000.00 CNY 2021-12-18 2022-12-17
Co., Ltd.
Chuzhou Kangxin Health
Industry Development 7,350,000.00 CNY 2021-1-6 2022-1-5
Co., Ltd.
Chuzhou Kangxin Health
Industry Development 167,580,000.00 CNY 2021-3-26 2022-3-26
Co., Ltd.
Chuzhou Kangjin Health
Industrial Development 74,436,380.39 CNY 2021-1-13 2022-2-25
Co., Ltd.
Chuzhou Kangjin Health
Industrial Development 24,500,000.00 CNY 2021-6-15 2022-6-14
Co., Ltd.
Chuzhou Kangjin Health
Industrial Development 58,800,000.00 CNY 2021-9-16 2022-9-15
Co., Ltd.
Yantai Kangyun Industrial 100,200,000.00 CNY 2020-11-23 2022-11-22
Development Co., Ltd.
Yantai Kangyun Industrial 9,490,000.00 CNY 2021-11-22 2022-8-24
Development Co., Ltd.
Yantai Kangyun Industrial 13,940,000.00 CNY 2021-12-8 2022-8-24
Development Co., Ltd.
Yantai Kangyun Industrial 3,230,000.00 CNY 2021-12-29 2022-8-24
Development Co., Ltd.
Dongguan Konka 196,000,000.00 CNY 2021-8-6 2022-8-5
Investment Co., Ltd.
Shandong Econ 48,707,451.77 CNY 2021-6-29 2022-2-25
Technology Co., Ltd.
Shandong Econ 60,000,000.00 CNY 2021-8-20 2022-2-25
Technology Co., Ltd.
Shandong Econ 30,000,000.00 CNY 2021-9-6 2022-2-25
Technology Co., Ltd.
Shandong Econ 288,000,000.00 CNY 2021-11-3 2022-2-25
Technology Co., Ltd.
Chongqing Liangshan
Industrial Investment Co., 1,000,000.00 CNY 2021-12-2 2022-11-28
Ltd.
Chongqing Liangshan
Industrial Investment Co., 99,000,000.00 CNY 2021-12-2 2022-11-28
Ltd.
Chongqing Liangshan 24,000,000.00 CNY 2021-12-24 2022-12-23
365
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Industrial Investment Co.,
Ltd.
Chongqing Liangshan
Industrial Investment Co., 96,000,000.00 CNY 2021-12-24 2022-12-23
Ltd.
Total 1,772,070,832.16
4. Information on Assets Transfer and Debt Restructuring by Related Party
Amount incurred Amount incurred
Name of related parties Content
in this year last year
OCT Group Co., Ltd. and its
Equity transfer 1,400,000,000.00 470,986,530.00-
subsidiaries and associates
Chutian Dragon Co., Ltd. Equity transfer 1,000,000.00 -
OCT Group Co., Ltd. and its Assignment of
- 188,200,000.00
subsidiaries and associates patent rights
Total 1,401,000,000.00 659,186,530.00
5. Information on Remuneration for Key Management Personnel
Amount incurred in this Amount incurred in last
Project
year (RMB10,000) year (RMB10,000)
Total remuneration 2,646.29 2,953.87
(III) Balances with Related Party
1. Accounts Receivable
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
Accounts provision balance provision
receivable:
Anhui Kaikai
Shijie
E-commerce Co., 148,730,451.88 8,135,088.28 153,854,753.25 3,170,897.81
Ltd. and its
subsidiaries
366
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
Shenzhen Yaode provision balance provision
Technology Co., 131,032,162.46 65,516,081.23 134,098,413.80 12,181,165.68
Ltd.
HOHOELECTRI
CAL&FURNITU 113,606,433.75 7,481,903.77 124,721,168.78 6,447,669.98
RECO.,LIMITED
OCT Group Co.,
Ltd. and its
84,983,568.24 1,879,172.85 68,938,082.60 1,503,214.49
subsidiaries and
associates
Shenzhen
Kanghongxing
Smart Technology
Co., Ltd.
(formerly known
39,940,213.90 6,151,331.52 38,956,293.90 5,163,003.42
as Shenzhen
Konka
Information
Network Co.,
Ltd.)
Chuzhou
Hanshang Electric
45,393,066.82 926,018.56 5,810,068.20 118,525.39
Appliance Co.,
Ltd.
Shenzhen E2info
Network
Technology Co., 27,311,757.32 569,055.58
Ltd. and its
subsidiaries
367
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
Shenzhen Jielunte provision balance provision
Technology Co.,
Ltd. and its
subsidiaries as 22,468,132.66 458,349.90 38,228,985.16 974,569.50
well as its
associated
enterprises
Shenzhen Konda
E-display Co.,
Ltd. (formerly
known as
12,099,780.90 247,013.76 12,709,150.65 343,432.80
Shenzhen Konda
E-display
Commercial
Screen Co., Ltd.)
Subtotal of other
27,367,315.41 583,847.73
related parties 61,469,607.24 4,970,120.16
Total 652,932,883.34 91,947,863.18 638,786,523.58 34,872,599.23
Financing
accounts
receivable/Notes
receivable:
Korea Electric
Group Co., Ltd.
15,000,000.00
and its
subsidiaries
Chuzhou
Hanshang Electric
14,000,000.00
Appliance Co.,
Ltd.
368
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
Anhui Kaikai provision balance provision
Shijie
E-commerce Co., 1,815,713.26 2,231,739.87
Ltd. and its
subsidiaries
Subtotal of other
2,243,687.84
related parties
Total 30,815,713.26 4,475,427.71
Interest
receivable:
OCT Group Co.,
Ltd. and its
7,564,562.01
subsidiaries and
associates
Yantai Kangyue
Investment Co., 10,910,514.22
Ltd.
Chongqing Lanlv
Moma Real Estate
Development Co.,
Ltd. (formerly
15,828,119.98
known as
Chongqing Konka
Fuze Real Estate
Co., Ltd.)
Total 34,303,196.21
Dividends
receivable
369
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
Chongqing provision balance provision
Qingjia
547,848.62
Electronics Co.,
Ltd.
Binzhou Beihai
Weiqiao Solid
4,400,000.00
Waste Treatment
Co., Ltd.
Total 4,947,848.62
Other
receivables:
Chongqing
Liangshan
Industrial 223,196,349.34 4,553,205.53 262,878,000.00 5,362,711.20
Investment Co.,
Ltd.
Jiangxi Meiji
Enterprise Co., 93,512,640.31 52,729,155.43 93,512,640.31 18,833,017.29
Ltd.
Dai Rongxing 79,974,500.96 52,816,781.04 82,914,871.05 21,175,816.98
Shenzhen
Kanghongxing
Smart Technology
Co., Ltd.
(formerly known
36,670,149.78 23,809,925.53
as Shenzhen
Konka
Information
Network Co.,
Ltd.)
370
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
OCT Group Co., provision balance provision
Ltd. and its
30,429,787.06 19,968,912.07 30,431,127.39 14,223,018.11
subsidiaries and
associates
Huanjia Group
25,083,675.53 17,302,185.43 23,065,103.20 9,226,041.28
Co., Ltd.
HOHOELECTRI
CAL&FURNITU 2,237,153.78 224,162.83 5,519,421.05 112,596.19
RECO.,LIMITED
Subtotal of other
117,002.15 46,468.84 473,279.18 21,303.41
related parties
Total 491,221,258.91 171,450,796.70 498,794,442.18 68,954,504.46
Prepayments:
Shenzhen
Kanghongxing
Smart Technology
Co., Ltd.
(formerly known
4,298,225.15 40,220,535.22
as Shenzhen
Konka
Information
Network Co.,
Ltd.)
KK Smartech
1,534,918.13
Limited
Shenzhen Jielunte
Technology Co.,
Ltd. and its
subsidiaries as 13,483,626.36
well as its
associated
enterprises
371
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
HOHOELECTRI provision balance provision
CAL&FURNITU 7,655,079.81
RECO.,LIMITED
Puchuang Jiakang
Technology Co, 5,111,181.00
Ltd.
Subtotal of other
961,888.99 5,647,733.34
related parties
Total 6,795,032.27 72,118,155.73
Current portion
of non-current
assets:
Feidi Technology
(Shenzhen) Co.,
10,395,523.78 30,630,065.09
Ltd. and its
subsidiaries
OCT Group Co.,
Ltd. and its
75,000,000.00
subsidiaries and
associates
Total 10,395,523.78 105,630,065.09
Other current
assets:
Shandong Econ
Technology Co.,
427,620,131.62
Ltd. and its
subsidiaries
Chuzhou Kangxin
Health Industry
339,338,066.67 152,880,000.00
Development Co.,
Ltd.
372
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
Dongguan Konka provision balance provision
Investment Co., 211,662,473.43 196,000,000.00
Ltd.
Chongqing Lanlv
Moma Real Estate
Development Co.,
Ltd. (formerly
205,263,079.97 188,430,000.00
known as
Chongqing Konka
Fuze Real Estate
Co., Ltd.)
OCT Group Co.,
Ltd. and its
163,287,310.66 160,847,400.00
subsidiaries and
associates
Yantai Kangyue
Investment Co., 149,862,482.00 128,527,000.00
Ltd.
Yantai Kangyun
Industrial
Development Co., 127,164,360.00
Ltd. and its
subsidiaries
Total 1,624,197,904.35 826,684,400.00
Long-term
receivables:
Feidi Technology
(Shenzhen) Co.,
565,099.14 12,749,762.58
Ltd. and its
subsidiaries
Total 565,099.14 12,749,762.58
373
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance
Related party
Carrying balance Bad debt Carrying Bad debt
Other provision balance provision
non-current
assets:
Chongqing
Qingjia
10,867,888.84
Electronics Co.,
Ltd.
Total 10,867,888.84
2. Accounts Payable
Related party Ending carrying Opening carrying
Accounts payable: balance balance
Chuzhou Hanshang Electric Appliance Co., Ltd. 46,950,863.88 9,462,196.04
Shenzhen Jielunte Technology Co., Ltd. and its
30,500,867.67 12,618,777.74
subsidiaries
Shenzhen Konda E-display Co., Ltd. (formerly
known as Shenzhen Konda E-display Commercial 15,522,755.99 6,223,095.56
Screen Co., Ltd.)
Chongqing Ruiyin Renewable Resources Co., Ltd.
10,737,902.34 18,510,819.80
and its subsidiaries
Korea Electric Group Co., Ltd. and its subsidiaries 9,047,641.17 3,481,603.74
Dongguan Konka Smart Electronic Technology Co.,
Ltd. (formerly known as Dongguan Konka Electronic 6,435,302.72 1,398,759.79
Smart Technology Co., Ltd.)
Shenzhen E2info Network Technology Co., Ltd. and
6,256,287.69
its subsidiaries
Anhui Kaikai Shijie E-commerce Co., Ltd. and its
4,370,387.10 2,633,353.42
subsidiaries
OCT Group Co., Ltd. and its subsidiaries and
2,831,336.86 10,042,155.58
associates
374
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Related party Ending carrying Opening carrying
Subtotal of other related parties balance
11,998,613.86 balance
18,239,182.75
Total 144,651,959.28 82,609,944.42
Notes payable:
Protron Jiakang Technology Co., Ltd. 22,412,418.23
Handian Group Co., Ltd. and its subsidiaries 15,984,491.27
Shenzhen Jielunte Technology Co., Ltd. and its
8,933,479.14 7,275,572.17
subsidiaries
Dongguan Kangjia New Materials Technology Co.,
Ltd. (formerly named: Dongguan Konka Packing 6,265,841.17
Materials Co., Ltd.)
Subtotal of other related parties 4,782,566.22 9,810,212.30
Total 58,378,796.03 17,085,784.47
Contractual liabilities/other current liabilities:
Shenzhen E2info Network Technology Co., Ltd. and
42,083,701.46
its subsidiaries
Sichuan Aimijiakang Technology Co., Ltd. 6,360,494.53
AUJET INDUSTRY LIMITED 4,527,703.32 15,357,854.41
Shenzhen Jielunte Technology Co., Ltd. and its
27,430,700.76
subsidiaries
Subtotal of other related parties 1,175,786.84 4,518,534.87
Total 54,147,686.15 47,307,090.04
Other payables:
Chuzhou Hanshang Electric Appliance Co., Ltd. 130,054,989.90 151,494,362.56
Guangdong Wanrun Tongheng Cultural & Tourism
120,212,000.00
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. and its
50,166,438.36 50,166,438.36
subsidiaries
Shandong Econ Technology Co., Ltd. and its
20,241,596.71
subsidiaries
375
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Related party Ending carrying Opening carrying
Feidi Technology (Shenzhen) Co., Ltd. and its balance balance
6,503,608.50 13,215,861.75
subsidiaries
Dongguan Kangjia New Materials Technology Co.,
Ltd. (formerly named: Dongguan Konka Packing 4,923,662.92
Materials Co., Ltd.)
Chongqing Ruiyin Renewable Resources Co., Ltd.
2,454,022.61 7,374,305.07
and its subsidiaries
Subtotal of other related parties 13,866,308.11 5,670,694.94
Total 348,422,627.11 227,921,662.68
Current portion of non-current liabilities:
OCT Group Co., Ltd. and its subsidiaries 10,777,675.49
Total 10,777,675.49
Long-term payables:
OCT Group Co., Ltd. and its subsidiaries and
40,485,591.71
associates
Total 40,485,591.71
376
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
XIIContingency
(1) Before the Company acquired Jiangxi Konka New Material, Jiangxi Konka New Material and
its subsidiaries Xinfeng Microcrystalline and Jiangxi High Transparent Substrate (formerly
known as Nano-Grystallized Glass) provided joint and several liability guarantee for the loans
from Nanchang Rural Commercial Bank Co., Ltd. to Jiangxi Xinxin Jian'an Engineering, Jiangxi
Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology, related parties of
former controlling shareholders of Jiangxi Konka New Material, and Nanchang Rural
Commercial Bank Co., Ltd. then transferred the claims to China Great Wall AMC Jiangxi Branch.
For the failure of Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material and
Jiangxi Shanshi Science and Technology to repay the borrowings on time, China Great Wall AMC
Jiangxi Branch filed a lawsuit requesting Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi
Decorative Material and Jiangxi Shanshi Science and Technology to repay the loan principal
amounting to RMB300 million and the liquidated damage and interest arising from it and
guarantors Jiangxi Konka New Material, Xinfeng Microcrystalline and Jiangxi High Transparent
Substrate to bear joint and several liability for such debts.
On October 31, 2019, Jiangxi Provincial Superior People’s Court ruled in the first instance that
Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi Shanshi
Technology should repay to China Great Wall AMC Jiangxi Branch the loan principal of
RMB300 million and the interest and liquidated damage arising from it within 10 days from the
effective date of the judgment, and Jiangxi Konka New Material, Zhu Xinming, Leng Sumin,
Nano-Grystallized Glass, Xinfeng Microcrystalline should bear joint and several liability for all
debts recognized in this judgment. The defendants appealed against the first-instance judgment
and the Supreme People's Court accepted the appeal. On March 24, 2021, the Supreme People's
Court of the People's Republic of China made the following ruling: I. Civil Judgment (2018)
G.M.CH. No. 110 made by Jiangxi Provincial Superior People's Court is abrogated; II. This case
is remanded to Jiangxi Provincial Superior People's Court for retrial. As of the date of issuance of
this report, the case is still under trial.
377
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
The actual controller of Jiangxi Konka New Materials, Zhu Xinming, and his spouse, Leng Sumin,
as guarantors, provided a total of about RMB 143 million of real estate mortgage guarantee to
Great Wall AMC for the above loans. Zhu Xinming and Leng Sumin also provided joint liability
guarantees. In order to avoid the adverse impact of this case on the Company, the Company has
agreed in the acquisition agreement of Jiangxi Konka, Xinfeng Microcrystalline and nanometer
microcrystalline that all contingent debts incurred by Jiangxi Konka by the original shareholders
of Konka new material in the form of joint and several liability. Jiangxi Xinzixin Real Estate Co.,
ltd. has held a total of about RMB 243 million of real estate assets as the case of the
anti-guarantee mortgage to Konka group and went through the mortgage registration procedures.
As of the date of this report, the case is still on trial and the above commercial acceptance bill has
not been honored.
(2) As for the dispute of the Company with Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo
Zongwu and Shenzhen Yaode Technology Co., Ltd. on share repurchase, since the other party did
not actively perform the repurchase obligation, the Company filed a lawsuit with the People's
Court of Nanshan District, Shenzhen. The amount of the subject matter involved in the lawsuit is
RMB249 million. On November 22, 2021, the Company applied to Shenzhen Nanshan District
People's Court for property preservation. As at the date of issuance of this report, no valid
judgment has been made for this case.
(3) As the acceptor failed to pay the commercial acceptance bills held by the Company upon
maturity, the Company, as the plaintiff, requested debtors Hongtu Sanpower Technology Co., Ltd.,
Jiangsu Hongtu High Technology Co., Ltd., Sanpower Group Co., Ltd., Nanjing Jiongjiong
Electronic Technology Co., Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co., Ltd.
to bear joint and several liability for the bills and the overdue interest. In July 2019, the company
filed a lawsuit with the court, and the court has preserved the defendant's corresponding property.
As at the date of issuance of this report, property execution is ongoing.
378
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(4) The amount of the subject matter involved in the dispute between the Company and Wuhan
Jialian Agricultural Technology Development Co., Ltd., Peng Chaojun, He Jiaguo, He Jiayi,
Liang Xiangzhou, Xu Yizheng, He Fan, Pang Huasheng, Song Liangming, and Liang Xiangmei
over the right of recourse for bills is RMB200 million and the corresponding interest. In
September 2020, the Company filed a lawsuit with Wuhan Intermediate People's Court, and the
Court order the defendant to pay Konka Group the bills and interest. As at the date of issuance of
this report, the case is in execution.
(5) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Unifortune and Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology
(Shenzhen) Co., Ltd., Shenzhen Hongyao Dingsheng Investment Management Co., Ltd.,
Shenzhen Xiangrui Yingtong Investment Management Co., Ltd., Luo Jingxia, Luo Zongwu, Luo
Zongyin, Luo Zaotong and Luo Saiyin over contracts is RMB155 million. On January 24, 2022,
the Intermediate People's Court of Shenzhen Municipality, Guangdong, a public announcement
on serving Civil Ruling (2021) Y. 03 M.CH. No. 5253 and the notice on sealing, distraining and
freezing of properties to the other party because some principals of the other party were missing.
The Court ruled to seal, distrain and freeze the properties of RMB155 million held by the
respondents Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology (Shenzhen)
Co., Ltd., Shenzhen Hongyao Dingsheng Investment Management Co., Ltd., Shenzhen Xiangrui
Yingtong Investment Management Co., Ltd., Luo Jingxia, Luo Zongwu, Luo Zongyin, Luo
Zaotong and Luo Saiyin.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the
Company, as the plaintiff, filed a lawsuit to the court on the matured bills amounting to RMB300
million, requesting the bill acceptor Shanghai Huaxin and prior parties involved to bear joint and
several liability for the bills and liquidated damage and interest. As at the date of issuance of this
report, the case involving RMB150 million is in compulsory execution and shareholders have
been added as persons to be executed in this case. For the remaining RMB150 million, the
defendants have been ordered to pay Konka Group the bills and interest, which is now in
compulsory execution. As at the date of issuance of this report, property execution is ongoing.
379
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(7) The amount of the subject matter involved in the dispute between the Company's subsidiaries
Frestec Refrigeration, Anhui Konka, Konka Material and Anhui Tongchuang (plaintiff) and
Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Lin
Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., Chuangfu Commerce &
Trade Plaza Real Estate Development (Huizhou) Co., Ltd. and Puning Junlong Trade Co., Ltd.
(defendant) over contracts is RMB380 million. As at the date of issuance of this report, no valid
judgment has been made for this case.
(8) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Investment (plaintiff) and Elion Resources Group Co., Ltd. and Elion Ecological Co., Ltd.
(defendant) over capital increase is RMB98 million. The court of arbitration issued an award on
27 January 2022. On 16 February 2022, the enforcement has been filed. And at the date of
issuance of this report, this case is in still in progress.
(9) A case has been filed on the dispute over the sales and purchase contracts between the
Company's subsidiary Konka Huanjia (plaintiff) and 38 companies (defendant) including Huanjia
Group Co., Ltd. and Dalian Jinshunda Material Recycling Co., Ltd., etc. The amount of the
subject matter involved in it is RMB890 million. Konka Huanjia has applied for the court to seal
up and freeze the defendant's corresponding property. As of the date of issuance of this report, no
effective judgment has been issued for this case.
(10) The amount of the subject matter involved in the dispute between the Company's subsidiary
Dongguan Konka (plaintiff) and Dongguan Gaoneng Polymer Materials Co., Ltd., Wang Dong,
Shenzhen Xinlian Xingyao Trading Co., Ltd., Shenzhen Jinchuan Qianchao Network Technology
Co., Ltd., Puning Junlong Trading Co., Ltd. and Huang Zhihao (defendant) over sales and
purchase contracts is RMB90 million. In December 2020, the Company filed a lawsuit to the
court. As of the date of issuance of this report, no effective judgment has been issued for this case.
380
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(11) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the
Company, as the plaintiff, filed a lawsuit to the court on the matured bills amounting to RMB78
million, requesting the court to order Hefei Huajun Trading Co., Ltd. and Wuhan Jialian
Agricultural Technology Development Co., Ltd. to pay the Company the bills and the interest for
default, and applied for property preservation. As at the date of issuance of this report, the Court
has ordered the defendant to pay Konka Group the bills and corresponding interest, and the case
is in execution.
(12) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Factoring (the plaintiff) and Tahoe Group Co., Ltd., Fuzhou Taijia Enterprise Co., Ltd. and
Xiamen Lianchuang Micro-electronics Co., Ltd. (the defendants) over the right of recourse for
bills is RMB50 million and the corresponding interest. On September 1, 2021, the Intermediate
People's Court of Xiamen Municipality, Fujian, ordered the defendants to pay the plaintiff
e-commercial acceptance bills of RMB50 million and the corresponding interest. As of the date of
issuance of this report, the case is in the execution stage.
(13) The amount of the subject matter involved in the dispute between the Company (plaintiff)
and China Energy Electric Fuel Co., Ltd., China Energy (Shanghai) Enterprise Co., Ltd.,
Shanghai Nengping Enterprise Co., Ltd. and Shenzhen Qianhai Baoying Commercial Factoring
Co., Ltd. (defendant) over the right of recourse for bills is RMB50 million and the corresponding
interest. In September 2018, the Company filed a lawsuit with Shenzhen Intermediate People’s
Court, which has preserved the defendant’s corresponding property. The judgment of this case has
come into effect. The Court ordered China Energy Electric Fuel Co., Ltd. and other defendants to
pay the Company the bills of RMB50 million and the interest. As at the date of issuance of this
report, the case is in execution, and the Company has applied to the court for adding shareholders
as persons to be executed.
(14) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Makena Electronic (Hong Kong) (defendant) over the sales and
purchase contract is RMB5,440,200. On December 7, 2021, Anhui Konka filed an arbitration
with the Shenzhen Court of International Arbitration. As at the date of issuance of this report, no
valid judgment has been made for this case.
381
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(15) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Shanghai Likai Logistics Co., Ltd. Shenzhen Branch and Shanghai
Likai Logistics Co., Ltd. (defendant) over freight forwarding contracts in maritime and open sea
waters is RMB38 million. On April 26, 2021, Konka applied to Shanghai Maritime Court for
compulsory execution. On June 7, 2021, the Court accepted the case and numbered it {2021) H.
72 ZH. No. 205. On 14 October 2021, Shanghai Maritime Court issued an executive order and
ended this execution. As at the date of issuance of this report, the case is in the final stage of
execution.
(16) The amount of the subject matter involved in the dispute between the Company and its
subsidiary Electronics Technology and Makena Electronic (Shenzhen) over contracts is RMB27
million. In this case, the Company and Electronics Technology were the defendants, and Makena
Electronic (Shenzhen), as the plaintiff, requested the court to order the defendants to pay for the
goods and the overdue interest. As of the date of issuance of this report, no effective judgment has
been issued for this case.
(17) On November 5, 2021, the Company entered into the Equity Investment Agreement with
Shandong Hi-Speed Company Limited ("Shandong Hi-Speed" in short), Yantai Baijiangyuan
Enterprise Management Center (Limited Partnership), Yantai Qingrunyuan Enterprise
Management Center (Limited Partnership), Yantai Qingjiangchuan Business Management Center
(Limited Partnership) and Yantai Fengqingtai Investment Center (Limited Partnership). According
to the Agreement, the Company transferred the 11.70% equity it held in Econ Technology to
Shandong Hi-Speed at a transaction price of RMB306,026,300 on November 25, 2021, and the
Company's shareholding percentage in Econ Technology changed to 39.30%. On November 26,
2021, Shandong Hi-Speed increased its capital contribution to Eco Technology and changed the
commercial registration information. The Company's shareholding percentage in Econ
Technology changed to 24.99%.
382
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
According to the Agreement, "original shareholders' commitment: After this capital increase, the
parties agree that the period from January 1, 2021 to December 31, 2025 is the performance
commitment period, and original shareholders promise that the net profit of the target company in
2021, 2022, 2023, 2024 and 2025 shall be no less than RMB340 million, RMB380 million,
RMB410 million, RMB440 million and RMB490 million, respectively. Such net profit refers to
the net profit in the consolidated statement audited by the annual report auditor engaged by Party
A."
The net profit of Econ Technology in the unaudited consolidated financial statements exceeded
the net profit stipulated in the performance commitment this year. Based on the reasonable
evaluation on current production and operation status of Econ Technology, the Company held that
the net profit committed for the performance commitment term could be achieved, the possibility
of future performance compensation obligations was extremely low and it should bear no liability
for performance compensation. Thus, the Company recognized the fair value of contingent
consideration as zero.
XIII. Commitment and Contingency
1. Capital Commitments
Item Ending balance Beginning balance
Large amount contract signed but hasn’t been
- -
recognized in financial statements
-Commitment on construction and purchase of
- 277,628,800.00
long-lived assets
-Large amount contract 954,751,938.62 4,310,308,187.10
-Foreign investment commitments - -
Total 954,751,938.62 4,587,936,987.10
2. Operating Lease Commitments
As of the balance sheet date, the irrevocable operating lease commitments that the Company
signed were as followed.
383
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
XIV Subsequent Events after the Balance Sheet Date
1. No significant non-adjusted events
2. Sales Returns
There were no significant sales returns after the balance sheet date.
3.Profit distribution
The profit distribution plan reviewed and approved on the 56th Meeting of the 9th Board of
Directors was as follows: based on the total shares of 2,407,945,408, a cash dividend of RMB0.50
(tax inclusive) per 10 shares is to be distributed to the shareholders with no bonus issue from
either profit or capital reserves.
4. The Group had no significant post-balance-sheet-date events other than the above-mentioned
ones disclosed after the balance sheet date.
XV Other Significant Events
The Company had no other significant events.
XVI Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Listed by Withdrawal Methods for Bad Debts
Ending balance
Carrying balance Bad debt provision
1) Catego Withdraw
ry Proporti al Carrying value
Amount Amount
on (%) proportio
n (%)
Accounts
receivable of
expected credit 963,517,996.45 18.14 660,600,525.26 68.56 302,917,471.19
losses withdrawn
individually
Accounts
receivable of
expected credit
384
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Carrying balance Bad debt provision
1) Catego Withdraw
ry Proporti al Carrying value
Amount Amount
on (%) proportio
n (%)
losses withdrawn
by portfolio
Of which: Aging
666,828,622.16 12.56 181,017,964.57 27.15 485,810,657.59
portfolio
Related
3,679,956,748.33 69.30 3,679,956,748.33
party group
Subtotal of
4,346,785,370.49 81.86 181,017,964.57 4.16 4,165,767,405.92
portfolios
Total 5,310,303,366.94 100.00 841,618,489.83 15.85 4,468,684,877.11
(continued)
Opening balance
Carrying balance Bad debt provision
Withdra
Category
Proporti wal Carrying value
Amount Amount
on (%) proportio
n (%)
Accounts
receivable of
expected credit 948,510,887.48 18.22 552,922,400.60 58.29 395,588,486.88
losses withdrawn
individually
Accounts
receivable of
expected credit
losses withdrawn
by portfolio
Of which: Aging 574,995,507.05 11.05 178,675,741.20 31.07 396,319,765.85
385
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Opening balance
Carrying balance Bad debt provision
Withdra
Category
Proporti wal Carrying value
Amount Amount
on (%) proportio
n (%)
portfolio
Related
3,681,343,439.12 70.73 3,681,343,439.12
party group
Subtotal of
4,256,338,946.17 81.78 178,675,741.20 4.20 4,077,663,204.97
portfolios
Total 5,204,849,833.65 100.00 731,598,141.80 14.06 4,473,251,691.85
2) Provision for bad debts of accounts receivable provided individually
Ending balance
Withdra
Name Bad debt wal Withdrawal
Carrying balance
provision proporti reason
on (%)
Shanghai Huaxin
International 300,018,021.01 270,016,218.90 90.00 Debt default
Group Co., Ltd.
Hongtu Sanbao
High-tech 200,000,000.00 80,000,000.00 40.00 Agreement
Technology Co., reorganization
Ltd.
Tewoo Group Co., 200,000,000.00 100,000,000.00 50.00 Judicial
Ltd. reorganization
Zhongfu Tiangong
Construction
Group Co., Ltd. Expected to be
(formerly known 71,789,096.65 46,662,912.82 65.00 difficult to recover
as “Zhonghegong in full
Construction
Group Co., Ltd.)
CCCC First
Expected to be
Harbor 55,438,105.00 48,915,975.00 88.24 difficult to recover
Engineering
in full
Company Ltd.
386
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Withdra
Name Bad debt wal Withdrawal
Carrying balance
provision proporti reason
on (%)
China Energy Expected to be
Electric Fuel Co., 50,000,000.00 42,500,000.00 85.00 difficult to recover
Ltd. in full
Expected to be
Others 86,272,773.79 72,505,418.54 84.04 difficult to recover
in full
Total 963,517,996.45 660,600,525.26 68.56 --
2) Bad debt provision for accounts receivable made as per portfolio
a. Among Groups, Withdrawal of Expected Credit Loss by Aging
Ending balance
Aging Bad debt Withdrawal
Carrying balance
provision proportion (%)
Within 1 year 475,363,714.96 9,697,419.79 2.04
1 to 2 years 3,617,085.28 362,431.95 10.02
2 to 3 years 18,598,634.09 4,220,030.08 22.69
3 to 4 years 7,150,071.42 4,638,966.34 64.88
Over 4 years 162,099,116.41 162,099,116.41 100.00
Total 666,828,622.16 181,017,964.57 27.15
b. Among Groups, Withdrawal of Expected Credit Loss by Adopting Other Method
Ending balance
Withdrawal
Aging
Carrying balance Bad debt provision proportion
(%)
Related party group 3,679,956,748.33
Total 3,679,956,748.33
(3) Accounts Receivable Listed by Aging Portfolio
Aging Ending balance
387
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Within 1 year 3,979,957,074.67
1 to 2 years 112,416,461.89
2 to 3 years 369,044,153.37
3 to 4 years 635,277,025.82
Over 4 years 213,608,651.19
Subtotal 5,310,303,366.94
Less: bad debt provision 841,618,489.83
Total 4,468,684,877.11
(4) Information of Bad Debt Provision in this Year
Changes in this year
Category Opening balance Reversal or
Withdrawal
recovery
Bad debt provision of
731,598,141.80 115,412,912.08
accounts receivable
Total 731,598,141.80 115,412,912.08
(continued)
Changes in this year
Category Written-off or Ending balance
Others
verified
Bad debt provision
of accounts 5,392,564.05 841,618,489.83
receivable
Total 5,392,564.05 841,618,489.83
(5) Actually Verified Accounts Receivable in this Year
Item Amount verified
Actually verified accounts receivable 5,392,564.05
(6) Receivables with Top 5 Ending Balance Collected by Arrears Party
The total amount of receivables with top 5 ending balance collected by arrears party this year
was RMB4,046,330,138.98, accounting for 76.20% of the total ending balance of accounts
receivable. The total ending balance of bad debt provision correspondingly withdrawn was
RMB275,174,800.60.
388
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
(7) There were no accounts receivable derecognized due to the transfer of financial assets
this year.
(8) There were no assets or liabilities formed due to the transfer and the continued
involvement of accounts receivable this year.
2. Other Receivables
Item Ending balance Opening balance
Interests receivable 2,002,526.91 41,138,869.97
Dividends receivable 383,943,256.80 749,431,635.50
Other Receivables 10,539,120,447.82 9,244,298,847.60
Total 10,925,066,231.53 10,034,869,353.07
2.1 Interest receivable
（1）Category of Interests Receivable
Item Ending balance Opening balance
Term deposit 2,002,526.91 6,830,211.26
Entrusted loans 34,303,196.21
Factoring interest 5,462.50
Total 2,002,526.91 41,138,869.97
2.2 Dividends Receivable
(1) Category of Dividends Receivable
Investee Ending balance Opening balance
Hong Kong Konka Limited 103,943,256.80 250,808,720.00
Suining Konka Industrial Park
280,000,000.00 280,000,000.00
Development Co., Ltd.
Dongguan Konka Electronic Co., Ltd. 218,622,915.50
Total 383,943,256.80 749,431,635.50
2.3 Other Receivables
(1) Classified by Account Nature
389
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending carrying balance Opening carrying
Nature
balance
Intercourse funds among
11,464,671,000.88 9,378,801,127.33
subsidiaries
Energy-saving subsidies receivable 141,549,150.00 141,549,150.00
Intercourse funds with other
50,667,315.53 118,043,953.69
related parties
Deposit and margin 10,533,532.11 9,180,409.27
Others 253,002,153.59 89,315,201.21
Total 11,920,423,152.11 9,736,889,841.50
(2) Withdrawal of Bad Debt Provision for Other Receivables
Stage 1 Stage 2 Stage 3
Expected loss in Expected credit
Expected
Bad debt the duration losses for the
credit loss of Total
provision (credit entire duration
the next 12
impairment not (with credit
months
occurred) impairment)
Balance as at 1
1,901,190.46 18,128,678.66 472,561,124.78 492,590,993.90
January 2021
In this year,
carrying amount of
-674,515.01 674,515.01
other receivables
on 1 January 2021
- Transferred to the
-674,515.01 674,515.01
Phase II
- Transferred to the
Phase III
- Transferred back
to the Phase II
- Transferred back
to the Phase I
Amount withdrawn 809,796.16 35,781,151.95 852,120,762.28 888,711,710.39
390
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Stage 1 Stage 2 Stage 3
Expected loss in Expected credit
Expected
Bad debt the duration losses for the
credit loss of Total
provision (credit entire duration
the next 12
impairment not (with credit
months
occurred) impairment)
this year
Amount
transferred back
this year
Amount written-off
this year
Amount verified
this year
Other changes
Balance as at 31
2,036,471.61 54,584,345.62 1,324,681,887.06 1,381,302,704.29
December 2021
(3) Withdrawal of Bad Debt Provision for Other Receivables by Portfolio
Ending balance
Carrying balance Bad debt provision
With
Category draw
Propo Carrying value
al
Amount rtion Amount
prop
(%)
ortio
n (%)
Other receivables
of expected
credit losses 1,917,144,244.04 16.08 1,324,681,887.06 69.10 592,462,356.98
withdrawn
individually
Other receivables
of bad debt
provision
withdrawn by
credit risk
characteristic
portfolio:
Aging portfolio 188,615,848.46 1.58 52,782,559.62 27.98 135,833,288.84
Low-risk 17,318,036.76 0.15 3,838,257.61 22.16 13,479,779.15
391
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Carrying balance Bad debt provision
With
Category draw
Propo Carrying value
al
Amount rtion Amount
prop
(%)
ortio
n (%)
portfolio
Related party
group 9,797,345,022.85 82.19 9,797,345,022.85
Subtotal of
portfolios 10,003,278,908.07 83.92 56,620,817.23 0.57 9,946,658,090.84
Total 11,920,423,152.11 100.00 1,381,302,704.29 11.59 10,539,120,447.82
(continued)
Beginning balance
Carrying balance Bad debt provision
Withd
Category Propor rawal Carrying value
Amount tion Amount propo
(%) rtion
(%)
Other receivables
of expected credit
losses withdrawn 1,764,691,060.74 18.12 472,561,124.78 26.78 1,292,129,935.96
individually
Other receivables
of bad debt
provision
withdrawn by
credit risk
characteristic
portfolio:
Aging portfolio 128,885,012.86 1.32 15,447,446.31 11.99 113,437,566.55
Low-risk
portfolio 17,273,953.16 0.18 4,582,422.81 26.53 12,691,530.35
Related party
group 7,826,039,814.74 80.38 7,826,039,814.74
Subtotal of
portfolios 7,972,198,780.76 81.88 20,029,869.12 0.25 7,952,168,911.64
Total 9,736,889,841.50 100.00 492,590,993.90 5.06 9,244,298,847.60
(4) Other Receivables Listed by Aging
Aging Ending balance
Within 1 year 9,579,438,988.64
1 to 2 years 510,817,039.35
392
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Aging Ending balance
2 to 3 years 1,036,227,944.68
3 to 4 years 437,475,984.18
4 to 5 years 39,078,993.51
Over 5 years 317,384,201.75
Subtotal 11,920,423,152.11
Less: bad debt provision 1,381,302,704.29
Total 10,539,120,447.82
(5) Bad Debt Provision for Other Receivables
The amount of bad debt provision withdrawn this year was RMB888,711,710.39. There was no
bad debt provision actually written off this year.
(6) Other Receivables Actually Written off this Year
There were no other receivables actually written off this year.
(7) Other Receivables with Top 5 Ending Balances Collected by Arrears Party
The total amount of other receivables with top 5 ending balance collected by arrears party
this year was RMB8,024,841,379.10, accounting for 67.32% of the total ending balance of other
receivables. The total ending balance of bad debt provision correspondingly withdrawn was
RMB1,137,274,582.48.
(8) There were no other receivables derecognized due to the transfer of financial assets
this year.
(9) There were no assets or liabilities formed due to the transfer and the continued
involvement of other receivables this year.
393
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
3. Long-term Equity Investments
(1) Category of Long-term Equity Investment
Ending balance Opening balance
Item Carrying balance Impairment Carrying value Carrying balance Impairment Carrying value
provision provision
Investment
to 6,697,991,519.67 442,644,418.70 6,255,347,100.97 7,083,817,068.77 102,532,484.69 6,981,284,584.08
subsidiaries
Investment
to joint
ventures and 2,618,520,670.18 240,725,547.51 2,377,795,122.67 1,851,048,093.64 26,166,078.16 1,824,882,015.48
associated
enterprises
Total 9,316,512,189.85 683,369,966.21 8,633,142,223.64 8,934,865,162.41 128,698,562.85 8,806,166,599.56
(2) Investment to subsidiaries
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Konka
2,550,000.00 2,550,000.00
Ventures
Anhui
122,780,937.98 122,780,937.98
Konka
394
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Konka
300,000,000.00 300,000,000.00
Factoring
Konka
15,300,000.00 15,300,000.00
Unifortune
Wankaida 10,000,000.00 10,000,000.00
Dongguan
274,783,988.91 274,783,988.91
Konka
Konka
3,637,470.00 3,637,470.00
Europe
Konka
Electrical 1.00 1.00 1.00 10,732,485.69
Appliances
Telecommun
ication 360,000,000.00 360,000,000.00
Technology
Mobile
Interconnect 100,000,000.00 100,000,000.00
ion
Anhui
779,702,612.22 779,702,612.22
Tongchuang
Kangjiatong 15,300,000.00 14,049,800.00 29,349,800.00
Pengrun 25,500,000.00 25,500,000.00
395
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Technology
Dongguan
8,602,009.10 8,602,009.10
Packing
E2info 19,322,040.00 19,322,040.00
Beijing
Konka 200,000,000.00 200,000,000.00
Electronic
Konka
91,000,000.00 196,650,000.00 287,650,000.00
Circuit
Hong Kong
781,828.61 781,828.61
Konka
Konka
500,000,000.00 500,000,000.00
Investment
Electronics
1,000,000,000.00 1,000,000,000.00
Technology
Yantai
688,500,000.00 688,500,000.00
Laikang
Econ
91,800,000.00
Technology
Konka
40,000,000.00 40,000,000.00
Huanjia
Shanghai 689,680,000.00 340,111,933.01 349,568,066.99 340,111,933.01 340,111,933.01
396
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Konka
Jiangxi
30,000,000.00 30,000,000.00
Konka
Shenzhen
100,000,000.00 100,000,000.00
Nianhua
Shenzhen
50,000.00 50,000.00
KONSEMI
Konka
Eco-Develo 200,000,000.00 200,000,000.00
pment
Suining
Konka
5,100,000.00 5,100,000.00
Industrial
Park
Konka
200,000,000.00 200,000,000.00
Ronghe
Suining
Electronic
Technologic 10,000,000.00 10,000,000.00
al
Innovation
Shenzhen 1,025,100.00 1,025,100.00
Chuangzhi
397
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Electrical
Appliances
Kanghong
(Yantai)
25,500,000.00 25,500,000.00
Environment
al Protection
Chongqing
933,333,333.33 933,333,333.33
Kangxingrui
Chongqing
Optoelectron
ic
56,000,000.00 36,520,000.00 92,520,000.00
Technology
Research
Institute
Kowin
Memory 90,000,000.00 90,000,000.00
(Shenzhen)
Jiangkang
(Shanghai) 510.00 510.00
Technology
Ningbo
Kanghr
10,000,000.00 10,000,000.00
Electrical
Appliance
398
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Konka
Intelligent
1,530,000.00 1,530,000.00
Manufacturi
ng
Suining
Jiarun 67,000,000.00 67,000,000.00
Property
Yantai
4,304,752.93 4,900,700.00 9,205,452.93
Kangyun
Chongqing
25,500,000.00 25,500,000.00
Kanglei
Yibin
50,000,000.00 50,000,000.00
Kangrun
Henan
Kangxin 30,000,000.00 30,000,000.00
Property
Konka
34,170,000.00 34,170,000.00
Material
Shenzhen
Kangxin 8,000.00 8,000.00
Property
Industrial 6,981,284,584.08 391,798,500.00 1,117,735,983.11 6,255,347,100.97 340,111,934.01 442,644,418.70
and Trade
399
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Technology
Konka
30,000,000.00 30,000,000.00
Huazhong
Shaanxi
Konka 34,170,000.00 34,170,000.00
Intelligent
Jiangxi
Konka
Industrial
Park
Ruichang
Kangrui
Real Estate
Guizhou
Kanggui
Material
Technology
Sichuan
8,000.00 8,000.00
Chengrui
Nantong
Kanghai
Chongqing
Kangyiyun
400
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Total 6,981,284,584.08 391,798,500.00 1,117,735,983.11 6,255,347,100.97 340,111,934.01 442,644,418.70
(3) Investment to joint ventures and associated enterprises
Increase/decrease this year
Closing Balance of Adjustment of
Investee Gains and losses
Last Year Additional Investment other
recognized under the
investment reduced comprehensive
equity method
income
Anhui Kaikai Shijie E-commerce Co.,
17,400,738.44
Ltd.
Wanjun Technology (Kunshan) Co., Ltd. 121,579,584.17 119,533,118.34 -2,046,465.83
Kunshan Kangsheng Investment
175,254,554.65 47,428,605.51
Development Co., Ltd.
Chutian Dragon Co., Ltd. 650,206,807.02 4,003,819.91
Helongjiang Longkang Zhijia Technology
1,100,842.29 56,805.53
Co., Ltd.
Konka Green, Konka Technology 75,261,304.56 75,261,304.56
401
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Increase/decrease this year
Closing Balance of Adjustment of
Investee Gains and losses
Last Year Additional Investment other
recognized under the
investment reduced comprehensive
equity method
income
Shaanxi Silk Road Cloud Intelligent Tech
17,649,295.81 -3,536,068.23
Co., Ltd.
Shenzhen Kanghongxing Intelligent
Technology Co., Ltd.
Shenzhen Zhongbin Konka Technology
2,214,307.33 -2,214,307.33
Co., Ltd.
Shenzhen Kangjia Jiapin Intelligent
3,813,134.28 108,653.89
Electrical Apparatus Technology Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd. 58,400,000.00 2,053,041.59
Shenzhen Yaode Technology Co., Ltd. 219,128,661.62 -4,569,192.27
Wuhan Tianyuan Environmental
304,654,243.69 20,991,597.22
Protection Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 11,774,141.26 1,323,068.85
Chuzhou Konka Technology Industry
5,899,324.39
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
15,251,484.01
Development Co., Ltd.
Haimen Kangjian Technology Industrial
Park Operations and Management Co., 19,044,986.77 -4,434,526.73
Ltd.
402
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Increase/decrease this year
Closing Balance of Adjustment of
Investee Gains and losses
Last Year Additional Investment other
recognized under the
investment reduced comprehensive
equity method
income
Shenzhen Kangyue Enterprise Co., Ltd. 3,348,297.05 -245,403.45
Dongguan Konka Investment Co., Ltd. 42,158,277.63 -24,396,079.70
Chongqing Yuanlu Benpao Real Estate
15,778,426.04 -16,040,179.15
Co., Ltd.
Chongqing Chengdai Real Estate Co.,
13,684,752.24 13,381,379.83 -303,372.41
Ltd. (English name found on the Internet.)
Chuzhou Kangxin Health Industry
14,704,242.50 -1,902,411.75
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 36,574,609.73
Shenzhen Kangpeng Digital Technology
9,000,000.00 -3,297,481.80
Co., Ltd.
Yantai Kangyun Industrial Development
10,201,017.42 -1,664,772.39
Co., Ltd.
Shandong Econ Technology Co., Ltd. 780,858,047.04 42,170,587.73
Dongguan Kangjia New Materials
5,284,786.29 -1,364,889.74
Technology Co., Ltd..
Shenzhen E2info Network Technology
82,232,663.02 42,670,836.05
Co., Ltd.
Total 1,824,882,015.48 887,576,513.77 208,175,802.73 94,791,865.50
403
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
(continued)
Increase/decrease this year Ending balance
Ending balance of
Investee Cash bonus or depreciation
Other equity Withdrawal of Oth
profits announced (Carrying value) reserve
changes impairment provision ers
to issue
Anhui Kaikai Shijie E-commerce Co.,
17,400,738.44
Ltd.
Wanjun Technology (Kunshan) Co., Ltd.
Kunshan Kangsheng Investment
222,683,160.16
Development Co., Ltd.
Chutian Dragon Co., Ltd. 6,720,000.00 647,490,626.93
Helongjiang Longkang Zhijia Technology
1,157,647.82 2,470,398.03
Co., Ltd.
Konka Green, Konka Technology
Shaanxi Silk Road Cloud Intelligent Tech
14,113,227.58
Co., Ltd.
Shenzhen Kanghongxing Intelligent
5,158,909.06
Technology Co., Ltd.
Shenzhen Zhongbin Konka Technology
Co., Ltd.
Shenzhen Kangjia Jiapin Intelligent
3,921,788.17
Electrical Apparatus Technology Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd. 60,453,041.59 18,536,771.07
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35 214,559,469.35
404
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Increase/decrease this year Ending balance
Ending balance of
Investee Cash bonus or depreciation
Other equity Withdrawal of Oth
profits announced (Carrying value) reserve
changes impairment provision ers
to issue
Wuhan Tianyuan Environmental
325,645,840.91
Protection Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 13,097,210.11
Chuzhou Konka Technology Industry
5,899,324.39
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
15,251,484.01
Development Co., Ltd.
Haimen Kangjian Technology Industrial
Park Operations and Management Co., 14,610,460.04
Ltd.
Shenzhen Kangyue Enterprise Co., Ltd. 3,102,893.60
Dongguan Konka Investment Co., Ltd. 17,762,197.93
Chongqing Yuanlu Benpao Real Estate
-261,753.11
Co., Ltd.
Chongqing Chengdai Real Estate Co.,
Ltd. (English name found on the Internet.)
Chuzhou Kangxin Health Industry
12,801,830.75
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 36,574,609.73
Shenzhen Kangpeng Digital Technology
5,702,518.20
Co., Ltd.
405
Notes to the Financial Statement of Konka Group Co., Ltd.
January 1 to December 31, 2021
(Unless otherwise specified, the unit in the Notes to the Financial Statement shall be RMB.)
Increase/decrease this year Ending balance
Ending balance of
Investee Cash bonus or depreciation
Other equity Withdrawal of Oth
profits announced (Carrying value) reserve
changes impairment provision ers
to issue
Yantai Kangyun Industrial Development
8,536,245.03
Co., Ltd.
Shandong Econ Technology Co., Ltd. 823,028,634.77
Dongguan Kangjia New Materials
3,919,896.55
Technology Co., Ltd..
Shenzhen E2info Network Technology
124,903,499.07
Co., Ltd.
Total - 6,720,000.00 214,559,469.35 2,377,795,122.67 240,725,547.51
406
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
4. Operating Revenue and Cost of Sales
(1) Operating Revenue and Cost of Sales
Amount incurred in this year Amount incurred last year
Item
Revenue Cost Revenue Cost
Lucrat
ive
2,751,336,207.49 2,722,434,244.20 3,076,325,721.91 2,769,474,547.43
busine
ss
Others 115,465,441.34 79,070,595.04 638,561,930.58 506,745,792.19
Total 2,866,801,648.83 2,801,504,839.24 3,714,887,652.49 3,276,220,339.62
(2) Information in relation to the trade price apportioned to the residual contract
performance obligation:
The amount of income corresponding to the performance obligations of contracts signed but
not yet performed or fully performed was RMB3,734,412.06 at the year-end, among which
RMB3,734,412.06 is expected to be recognized in 2022.
5. Investment returns
Amount incurred in Amount incurred
Item
this year last year
Long-term equity investment income
43,610,748.17 585,217,964.13
accounted by cost method
Long-term equity investment income
94,791,865.50 -5,700,659.97
accounted by equity method
Investment income from disposal of long-term
3,286,362,797.82 1,215,083,684.94
equity investment
Investment income from disposal of financial
32,839,604.17 3,405,333.03
assets at fair value through profit or loss
Interest income earned on investment in debt
7,060,000.00 4,800,000.00
obligations during the holding period
Income from entrust financial products and
19,038,445.39
entrust loans
Total 3,464,665,015.66 1,821,844,767.52
407
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
XVI Approval of Financial Statements
The Financial Statement was released with the approval of the Company's Board of
Directors on March 28, 2022.
408
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
XVII Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss this Year
Amount of current Note
Item
year
Gains/losses from the disposal of non-current assets 4,047,094,117.70
Tax rebates, reductions or exemptions due to approval
beyond authority or the lack of official approval
documents
Government grants recognized in the current period,
except for those acquired in the ordinary course of
1,352,377,548.16
business or granted at certain quotas or amounts
according to the government’s unified standards
Dispossession surcharge to non-financial institutions
included in the current profit and loss
Profits arising from business combination when the
combined cost is less than the recognized fair value of
net assets of the mergered company
Gain/Loss on non-monetary asset swap
Gain/Loss on entrusting others with investments or
asset management
Asset impairment provisions due to acts of God such
as natural disasters
Gain/Loss from debt restructuring 19,777.25
Expenses on business reorganization, such as
expenses on staff arrangements, integration, etc.
Gain/Loss on the part over the fair value due to
transactions with distinctly unfair prices
Current net profit or loss of subsidiaries acquired in
business combination under the same control from
period-beginning to combination date
Gains and losses arising from contingencies unrelated
to the normal operation of the company's business
Gain/loss from change of fair value of trading
financial assets and liabilities, and derivative financial 67,789,442.65
assets and liabilities, and investment gains from
409
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Amount of current Note
Item
year
disposal of trading financial assets and liabilities, and
derivative financial assets and liabilities, and
investment in other obligatory rights, other than valid
hedging related to the Company’s common businesses
Reversal of provision for impairment test of
receivables and contract assets impairment
Gain/loss on entrustment loans 80,625,356.41
Gain/loss on change in fair value of investment
property of which the follow-up measurement is
carried out adopting fair value method
Effect on current profit or loss when a one-off
adjustment is made to current profit or loss according
to requirements of taxation, accounting and other
relevant laws and regulations
Custodian fees earned from entrusted operation
Other non-operating income and expense other than
48,615,769.37
the above
Other profit and loss items in line with the definition
-1,907,936.23
of non-recurring gains and losses
Subtotal 5,594,614,075.31
Less: Income tax effects 1,190,629,946.56
Minority shareholders' equity impact (after tax) 247,833,023.58
Total 4,156,151,105.17
(1) The explanation of the Company to “Project confirmed with the definition of non-recurring gains
and losses” and define non-recurring gains and losses as recurring gains and losses according to the
nature and features of normal business operations of company.
Item Amount Reason
Software tax Government subsidies which are closely related to the
12,585,857.26
refund normal business of the company and which are in
410
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2021 to 31 December 2021 (all amounts in RMB yuan unless otherwise stated)
Item Amount Reason
accordance with national policies and certain standard
quota or quantitative amount
Total 12,585,857.26
2. Return on Equity and Earnings Per Share
Weighted average EPS (RMB/share)
ROE (%) Basic Diluted
Profit as of Reporting Period
Return on net assets earnings per earnings per
(%) share share
Net profit attributable to ordinary
10.33 0.3760 0.3760
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
-37.10 -1.3500 -1.3500
deduction of non-recurring profit or
loss
The Board of Directors
Konka Group Co., Ltd.
29 March 2022
411
