Konka Group Co., Ltd. First Quarter Report 2019
KONKA GROUP CO., LTD.
FIRST QUARTER REPORT 2019
2019-41
April 2019
1
Konka Group Co., Ltd. First Quarter Report 2019
Part I Important Notes
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.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Fengxi, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Feng Junxiu, 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.
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. First Quarter Report 2019
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2019 Q1 2018 Change (%)
Operating revenue (RMB) 10,772,118,842.18 7,773,238,729.83 38.58%
Net profit attributable to the listed company ’ s
85,566,720.43 55,758,297.40 53.46%
shareholders (RMB)
Net profit attributable to the listed company ’ s
-418,684,690.19 -68,684,426.14 -509.58%
shareholders before exceptional items (RMB)
Net cash generated from/used in operating
-540,740,144.72 -1,019,365,516.72 46.95%
activities (RMB)
Basic earnings per share (RMB/share) 0.0355 0.0232 53.02%
Diluted earnings per share (RMB/share) 0.0355 0.0232 53.02%
Weighted average return on equity (%) 1.05% 0.70% 0.35%
31 March 2019 31 December 2018 Change (%)
Total assets (RMB) 36,306,878,651.93 32,985,061,889.03 10.07%
Equity attributable to the listed company ’ s
8,214,349,853.96 8,104,736,790.53 1.35%
shareholders (RMB)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 489,756,829.17
Government subsidies charged to current profit or loss (exclusive of government subsidies given
in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s 38,562,981.71
uniform standards)
Gain or loss on assets entrusted to other entities for investment or management 73,291,331.14
Gain or loss on fair-value changes in trading financial assets and liabilities & investment income
from disposal of trading financial assets and liabilities and available-for-sale financial assets -13,291,264.69
(exclusive of effective portion of hedges that arise in the Company’s ordinary course of business)
Gain or loss on loan entrustments 404,088.05
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Konka Group Co., Ltd. First Quarter Report 2019
Non-operating income and expense other than the above 9,548,911.72
Less: Income tax effects 19,670,715.54
Non-controlling interests effects (net of tax) 74,350,750.94
Total 504,251,410.62 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or
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
Item Amount (RMB) Reason
Tax rebates on Government subsidies given in the Company’s ordinary course of business at
9,929,550.92
software fixed quotas or amounts as per government’s uniform standards
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders Number of preferred shareholders with resumed
84,394 0
at the period-end voting rights at the period-end (if any)
Top 10 shareholders
Shares in pledge
Nature of Shareholding Total shares Restricted
Name of shareholder or frozen
shareholder percentage held shares held
Status Shares
OVERSEAS CHINESE TOWN State-owned
21.75% 523,746,932 0
ENTERPRISES CO., LTD legal person
CITIC SECURITIES BROKERAGE Foreign
7.56% 182,100,202 0
(HONG KONG) CO., LTD. legal person
Foreign
HOLY TIME GROUP LIMITED 2.33% 56,139,100 0
legal person
GUOYUAN SECURITIES BROKER Foreign
2.25% 54,203,779 0
(HK) CO., LTD. legal person
Foreign
GAOLING FUND,L.P. 2.19% 52,801,250 0
legal person
Domestic
ZHANG XIAOYU natural 1.09% 26,292,578 0
person
Foreign
NAM NGAI natural 0.93% 22,453,440 0
person
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Konka Group Co., Ltd. First Quarter Report 2019
Hong Kong Securities Clearing Company Foreign
0.91% 21,970,787 0
Limited legal person
CHINA MERCHANTS SECURITIES State-owned
0.88% 21,214,624 0
(HK) LIMITED legal person
National Social Security Fund 118
Other 0.83% 20,099,537 0
Portfolio
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
OVERSEAS CHINESE TOWN ENTERPRISES CO., RMB-denominated
523,746,932 523,746,932
LTD ordinary stock
CITIC SECURITIES BROKERAGE (HONG KONG) Domestically listed
182,100,202 182,100,202
CO., LTD. foreign stock
Domestically listed
HOLY TIME GROUP LIMITED 56,139,100 56,139,100
foreign stock
Domestically listed
GUOYUAN SECURITIES BROKER (HK) CO., LTD. 54,203,779 54,203,779
foreign stock
Domestically listed
GAOLING FUND,L.P. 52,801,250 52,801,250
foreign stock
RMB-denominated
ZHANG XIAOYU 26,292,578 26,292,578
ordinary stock
Domestically listed
NAM NGAI 22,453,440 22,453,440
foreign stock
RMB-denominated
Hong Kong Securities Clearing Company Limited 21,970,787 21,970,787
ordinary stock
Domestically listed
CHINA MERCHANTS SECURITIES (HK) LIMITED 21,214,624 21,214,624
foreign stock
RMB-denominated
National Social Security Fund 118 Portfolio 20,099,537 20,099,537
ordinary stock
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company ’ s first majority
Related or shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for short), holds 180,001,110
acting-in-concert parties and 18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage
among the shareholders (Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment
above Limited and Overseas Chinese Town Enterprises Co. 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.
Top 10 ordinary
Zhang Xiaoyu holds 26,292,578 A-shares in the Company through her account of collateral
shareholders involved in
securities for margin trading in Huaxi Securities Co., Ltd.
securities margin trading
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Konka Group Co., Ltd. First Quarter Report 2019
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Konka Group Co., Ltd. First Quarter Report 2019
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
(I) In the Reporting Period, the Company carried on with its long-term development strategy of
“Technology + Industry + Park”, accelerating its strategic transformation and upgrade with respect
to “ One Centric Orientation, Two Development Paths, Three Development Strategies and Four
Business Groups”.
The following results have been achieved during the Reporting Period:
1. The Company continued to increase its investment in R&D and strengthen the R&D team so as
to steadily improve its core R&D strength. Following the National Second Prize for Progress in
Science and Technology for the project of the Digital TV Broadcast System and the Domestication
of Core Chips where the Company took part in, the project of the Research and Application of Key
Quality Management Technologies for Food in Refrigerators which was led by the Company won
the Third Prize for Progress in Science and Technology 2018 from China Light Industry Council.
2. For the Reporting Period, the Company is expected to achieve operating revenue of
approximately RMB10.772billion, up around 38.58% year-on-year. To be specific, the multi-media
business saw strong growth in retail and overseas sales thanks to multiple system reforms after the
business had been transferred to Shenzhen Konka Electronics Technology Co., Ltd. for operation.
The white goods business reported sales revenue of over RMB1 billion for the Reporting Period, up
around 47% year-on-year, due to a larger scale supported by the two brands of “Konka + Frestec”.
The new businesses of water management, renewable resources recycling and new materials
maintained fast growth in operating revenue in the Reporting Period, in addition to winning the bids
for environmental protection projects worth around RMB3.2 billion.
3. The industrial park projects in Chuzhou, Yibin, Nanjing, Suining, etc. were carried forward.
Construction was officially started for the Konka Smart Appliances and Equipment Industrial Park
in Chuzhou, the Konka Smart Terminals High-Tech Industrial Park in Yibin, the Konka Electronics
Technology Industrial Park in Suining, etc.
Exceptional items have an effect of RMB504 million on the consolidated net profit achieved during
the Reporting Period, which were primarily exceptional gains on the transfer of some equity
interests in subsidiaries and on the disposal of some assets of subsidiaries.
(II) Changes in Key Financial Statement Line Items
Unit: RMB’0,000
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Konka Group Co., Ltd. First Quarter Report 2019
Item 31 March 2019 1 January 2019 Change Change Explanation of why
Investments in
New fund investments during the Reporting
other equity 163,379.93 63,366.49 100,013.44 157.83%
Period
instruments
Long-term Increase in new long-term borrowings of
80,400.00 44,500.00 35,900.00 80.67%
borrowings subsidiaries
Item Q1 2019 Q1 2018 Change Change Explanation of why
Operating revenue 1,077,211.88 777,323.87 299,888.01 38.58% Expansion of the supply chain trade
business and the new environmental
Cost of sales 1,015,581.43 714,481.34 301,100.09 42.14% protection business during the Reporting
Period
Issuance of RMB2.5 billion of corporate
Finance costs 27,809.24 6,108.64 21,700.60 355.24%
bonds during the Reporting Period
Gain on changes in Changes in the fair value of forward foreign
-300.54 3,414.22 -3,714.76 -108.80%
fair value exchange contracts
Return on Transfer of equity interests in subsidiaries
26,688.91 3,678.60 23,010.31 625.52%
investment during the Reporting Period
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
1. Private Placement of A-share: The proposal on private placement of A-share has been reviewed
and approved by the board of directors of the Company and been submitted to the State-owned
Assets Supervision and Administration Commission and general meeting of the Company. For
details about the private placement of A-share, please refer to the announcement of the Company
disclosed on cninfo.com.cn.
2. Strategic cooperation agreement with Chuzhou Municipal Government: Currently, the project
land has been awarded for Konka Intelligent Home Appliance and Equipment Industrial Park
Project (including Ankang Intelligent Factory) and Science and Technology Innovation Center
Project Phase II and preparations are being made for the commencement of construction; in addition,
the purchase and storage of the original plant of Anhui Konka Electronic Co., Ltd. by the
government has been completed. in terms of Opto-electronics Industrial Fund Project (namely,
Chuzhou Huike Intelligent Home Appliance Industry Investment Partnership (limited partnership)),
the investment agreement has been signed and changes in business registration have been
completed; in respect of Konka New Retail Headquarters Project, the project company has been
established; in terms of Konka Minghu K-Care Town Project, negotiations are being carried out.
3. As for projects of Dongguan city ’ s new plant and Suining Konka Electronic Technological
Industrial Park, preparations are underway and the Company is waiting for the local government to
put out the project target land for bids.
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Konka Group Co., Ltd. First Quarter Report 2019
4. As for the project of Yibin Smart Terminal High-Tech Industrial Park, the land use right transfer
agreement has been signed and the Construction officially started.
5. As for the project of Nanjing K-Star Cloud Network Headquarters, the land use right transfer
agreement has been signed and the report to the Planning Bureau for approval and piling are
underway. The Company has transferred the control power over the project company during the
Reporting Period.
6. Private placement of corporate bonds, asset securitization of commercial factoring and asset
securitization of accounts receivable: During the Reporting Period, the private placement of
corporate bonds (Phase I) of RMB2.5 billion has been issued; the asset securitization of commercial
factoring and asset securitization of accounts receivable are in the declaration.
7. Launch of establishing the Orient Konka Industrial M&A Fund: Currently, the fund has
completed the filing registration for private placement fund and respectively holds 11.95% of shares
in Jiangxi Yahua Electronic Materials Co., Ltd., 2.75% of shares in Shenzhen Genew Technologies
Co., Ltd., 5% of shares in Roshow Technology Co., Ltd., and 11.73% of shares in Shenzhen Gren
RF Communication Co., Ltd. through investments.
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company ’ s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1
2019, as well as explanation of why:
□ Applicable √ Not applicable
V Securities Investments
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Konka Group Co., Ltd. First Quarter Report 2019
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Funding source for derivative
U.S. dollar financings
investment
Legal matters involved (if
None
applicable)
Disclosure date of board
announcement approving derivative 24 May 2014
investment (if any)
Disclosure date of shareholders ’
meeting announcement approving 10 June 2014
derivative investment (if any)
We engage in forward forex transactions to reduce the currency risk when securing
Analysis of risks and control
foreign-currency financing. This is very needed in our routine operation and is in
measures associated with derivative
compliance with the applicable laws and regulations. We have formulated the
investments held in Reporting
Management Rules of Konka Group Co., Ltd. for Investment In Derivative Financial
Period (including but not limited to
Instruments, making clear the relevant consideration and approval procedure, risk control,
market risk, liquidity risk, credit
etc. We always sign forward forex contracts with large banks such as the Bank of China,
risk, operational risk, legal risk,
which operate steadily and have good credit standing, which could help prevent loss on
etc.)
forward forex contracts due to bank failure.
How we usually measure the fair value of derivative financial instruments: Based on the
Changes in market prices or fair forward forex sales and purchase contracts that are signed between the Company and
value of derivative investments in banks and have not expired in a Reporting Period, we recognize the differences between
Reporting Period (fair value the quotations for these contracts on the balance sheet dates provided by the banks and the
analysis should include contractual prices as transactional financial assets or liabilities, and the profit/loss on fair
measurement method and related value changes is recognized accordingly. Because these contracts have locked in exchange
assumptions and parameters) rates, no changes will occur when comparing the fair value on signing dates with that on
delivery dates.
Material changes in accounting
policies and specific accounting
principles adopted for derivative No material changes
investments in Reporting Period
compared to last reporting period
It is considered necessary for the Company to lock in foreign-currency financing costs
Opinion of independent directors through financial instruments, because it could effectively reduce the currency risk when
on derivative investments and risk securing foreign-currency financing. The Company has formulated the internal control
control mechanism for investment in derivative financial instruments, and the relevant risk control
measures that the Company has taken are considered effective.
Unit: RMB’0,000
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Konka Group Co., Ltd. First Quarter Report 2019
Ending investment amount as a
Type of derivative Beginning Ending contractual Gain/loss in
percentage of the Company’s ending
financial instrument contractual amount amount Reporting Period
net asset value
Forward forex contract 61,356.18 0 -1,329.13 0%
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company ’ s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Konka Group Co., Ltd. First Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
31 March 2019
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 5,093,938,081.12 4,348,144,129.53
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through profit or loss 5,464,984.92
Derivative financial assets
Notes and accounts receivable 7,944,980,114.76 7,787,765,540.57
Including: Notes receivable 2,821,032,497.08 3,329,711,954.15
Accounts receivable 5,123,947,617.68 4,458,053,586.42
Prepayments 1,425,010,029.61 1,036,979,167.56
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,196,449,279.62 410,804,180.50
Including: Interest receivable 8,464,023.15 4,059,682.40
Dividends receivable 547,848.62 547,848.62
Financial assets purchased under resale agreements
Inventories 5,865,453,009.98 5,487,605,227.05
Contractual assets
Assets classified as held for sale
Current portion of non-current assets 31,850,209.83 22,318,208.13
Other current assets 2,525,632,062.22 2,744,216,141.98
Total current assets 24,083,312,787.14 21,843,297,580.24
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Konka Group Co., Ltd. First Quarter Report 2019
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 633,664,881.33
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables 393,555,234.81 390,793,038.05
Long-term equity investments 2,626,830,539.59 2,637,780,825.53
Investments in other equity instruments 1,633,799,281.33
Other non-current financial assets
Investment property 209,416,537.15 210,824,355.72
Fixed assets 2,231,560,837.86 2,410,226,495.81
Construction in progress 2,168,706,288.15 2,176,871,530.80
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 756,133,351.86 737,776,686.34
R&D expense 5,585,235.10
Goodwill 855,691,423.75 855,691,423.75
Long-term prepaid expense 98,278,020.48 111,223,426.77
Deferred income tax assets 740,837,273.20 639,433,954.30
Other non-current assets 503,171,841.51 337,477,690.39
Total non-current assets 12,223,565,864.79 11,141,764,308.79
Total assets 36,306,878,651.93 32,985,061,889.03
Current liabilities:
Short-term borrowings 13,529,952,786.20 13,884,132,931.63
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value through profit or loss 2,459,603.25
Derivative financial liabilities
Notes and accounts payable 5,611,816,434.78 5,225,053,739.80
Advances from customers 749,144,700.27 723,227,529.20
Financial assets sold under repurchase agreements
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Konka Group Co., Ltd. First Quarter Report 2019
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Payroll payable 219,858,418.19 376,506,567.71
Taxes payable 367,779,468.06 288,004,192.44
Other payables 2,353,541,235.25 2,024,657,277.74
Including: Interest payable 53,429,282.92 27,230,631.41
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Contractual liabilities
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities 116,352,928.61 151,792,404.13
Other current liabilities
Total current liabilities 22,948,445,971.36 22,675,834,245.90
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 804,000,000.00 445,000,000.00
Bonds payable 2,492,433,176.12
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 154,173,931.79 128,374,597.41
Long-term payroll payable 8,421,886.82 8,792,614.98
Provisions 13,206,591.51 21,772,898.37
Deferred income 114,746,270.51 112,899,128.24
Deferred income tax liabilities 138,434,874.96 141,020,093.34
Other non-current liabilities
Total non-current liabilities 3,725,416,731.71 857,859,332.34
Total liabilities 26,673,862,703.07 23,533,693,578.24
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
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Konka Group Co., Ltd. First Quarter Report 2019
Perpetual bonds
Capital reserves 208,356,624.21 208,356,624.21
Less: Treasury stock
Other comprehensive income 13,476,560.74 -10,538,219.08
Special reserves 31,563.18
Surplus reserves 1,227,564,785.19 1,227,564,785.19
General reserve
Retained earnings 4,356,974,912.64 4,271,408,192.21
Total equity attributable to owners of the Company as the parent 8,214,349,853.96 8,104,736,790.53
Non-controlling interests 1,418,666,094.90 1,346,631,520.26
Total owners’ equity 9,633,015,948.86 9,451,368,310.79
Total liabilities and owners’ equity 36,306,878,651.93 32,985,061,889.03
Legal representative: Liu Fengxi CFO: Li Chunlei Head of the financial department: Feng Junxiu
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 2,039,941,002.17 2,124,335,536.69
Trading financial assets
Financial assets at fair value through profit or loss 5,464,984.92
Derivative financial assets
Notes and accounts receivable 9,948,341,557.62 9,608,713,113.32
Including: Notes receivable 2,034,245,702.52 2,181,466,683.90
Accounts receivable 7,914,095,855.10 7,427,246,429.42
Prepayments 1,153,285,698.97 1,019,335,571.49
Other receivables 8,179,357,398.45 6,667,463,126.57
Including: Interest receivable 4,469,124.64 5,769,663.24
Dividends receivable
Inventories 334,890,754.57 254,225,716.41
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 63,944,713.32 77,249,216.99
Total current assets 21,719,761,125.10 19,756,787,266.39
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Konka Group Co., Ltd. First Quarter Report 2019
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 326,164,881.33
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 6,598,799,520.65 6,182,962,034.71
Investments in other equity instruments 326,164,881.33
Other non-current financial assets
Investment property 209,416,537.15 210,824,355.72
Fixed assets 457,239,715.10 462,721,018.30
Construction in progress 189,978,680.80 157,356,696.30
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 82,587,720.54 83,593,959.11
R&D expense
Goodwill
Long-term prepaid expense 71,609,517.08 80,388,949.97
Deferred income tax assets 623,645,261.76 516,879,201.66
Other non-current assets 20,000,000.00 20,000,000.00
Total non-current assets 8,579,441,834.41 8,040,891,097.10
Total assets 30,299,202,959.51 27,797,678,363.49
Current liabilities:
Short-term borrowings 8,263,307,897.40 8,179,564,987.70
Trading financial liabilities
Financial liabilities at fair value through profit or loss 2,459,603.25
Derivative financial liabilities
Notes and accounts payable 9,774,999,094.02 9,990,213,911.08
Advances from customers 271,524,966.93 306,650,717.69
Contractual liabilities
Payroll payable 79,755,260.85 146,199,496.44
Taxes payable 11,310,894.61 10,913,871.30
Other payables 2,620,390,954.14 2,011,494,378.65
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Konka Group Co., Ltd. First Quarter Report 2019
Including: Interest payable 49,002,780.48 24,158,666.48
Dividends payable
Liabilities directly associated with assets classified as held for sale
Current portion of non-current liabilities 40,000,000.00
Other current liabilities
Total current liabilities 21,021,289,067.95 20,687,496,966.11
Non-current liabilities:
Long-term borrowings 244,000,000.00 245,000,000.00
Bonds payable 2,492,433,176.12
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions 206,591.51 206,591.51
Deferred income 72,201,734.18 75,705,476.93
Deferred income tax liabilities 751,345.42
Other non-current liabilities
Total non-current liabilities 2,808,841,501.81 321,663,413.86
Total liabilities 23,830,130,569.76 21,009,160,379.97
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 114,018,066.79 114,018,066.79
Less: Treasury stock
Other comprehensive income -1,182,217.31 -1,182,217.31
Special reserves
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 2,720,726,347.08 3,040,171,940.85
Total owners’ equity 6,469,072,389.75 6,788,517,983.52
Total liabilities and owners’ equity 30,299,202,959.51 27,797,678,363.49
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Konka Group Co., Ltd. First Quarter Report 2019
3. Consolidated Income Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Revenue 10,772,118,842.18 7,773,238,729.83
Including: Operating revenue 10,772,118,842.18 7,773,238,729.83
Interest income
Premium income
Handling charge and commission income
2. Costs and expenses 11,202,465,172.32 7,882,064,997.46
Including: Cost of sales 10,155,814,290.20 7,144,813,360.27
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 18,475,034.55 13,589,602.99
Selling expense 528,175,102.68 515,116,761.90
Administrative expense 166,378,779.54 98,571,374.10
R&D expense 60,488,366.07 63,660,743.95
Finance costs 278,092,405.94 61,086,438.88
Including: Interest expense 270,257,047.31 80,250,454.16
Interest income 42,801,685.68 73,576,813.30
Asset impairment loss -4,958,806.66 -14,773,284.63
Credit impairment loss
Add: Other income 33,914,982.48 79,427,673.98
Return on investment (“-” for loss) 266,889,127.97 36,786,042.34
Including: Share of profit or loss of joint ventures and
5,251,729.37 6,970,000.00
associates
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -3,005,381.67 34,142,182.67
Asset disposal income (“-” for loss) 293,705,640.64
18
Konka Group Co., Ltd. First Quarter Report 2019
3. Operating profit (“-” for loss) 161,158,039.28 41,529,631.36
Add: Non-operating income 28,855,410.44 84,351,129.33
Less: Non-operating expense 4,995,457.15 2,031,498.28
4. Profit before tax (“-” for loss) 185,017,992.57 123,849,262.41
Less: Income tax expense 26,564,577.49 19,428,807.03
5. Net profit (“-” for net loss) 158,453,415.08 104,420,455.38
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss)
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the
85,566,720.43 55,758,297.40
parent
5.2.1 Net profit attributable to non-controlling interests 72,886,694.65 48,662,157.98
6. Other comprehensive income, net of tax 23,162,659.81 9,213,157.17
Attributable to owners of the Company as the parent 24,014,779.82 9,874,124.52
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined benefit
pension 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 equity
instruments
6.1.4 Changes in the fair value of the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to profit or loss 24,014,779.82 9,874,124.52
6.2.1 Other comprehensive income that will be 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 Gain/Loss on changes in the fair value of
-31,342.08
available-for-sale financial assets
6.2.4 Other comprehensive income arising from the
reclassification of financial assets
6.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial assets
6.2.6 Allowance for credit impairments in investments in
other debt obligations
6.2.7 Reserve for cash flow hedges
19
Konka Group Co., Ltd. First Quarter Report 2019
6.2.8 Differences arising from the translation of foreign
24,014,779.82 9,905,466.60
currency-denominated financial statements
6.2.9 Other
Attributable to non-controlling interests -852,120.01 -660,967.35
7. Total comprehensive income 181,616,074.89 113,633,612.55
Attributable to owners of the Company as the parent 109,581,500.25 65,632,421.92
Attributable to non-controlling interests 72,034,574.64 48,001,190.63
8. Earnings per share
8.1 Basic earnings per share 0.0355 0.0232
8.2 Diluted earnings per share 0.0355 0.0232
Legal representative: Liu Fengxi CFO: Li Chunlei Head of the financial department: Feng Junxiu
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Operating revenue 3,159,459,959.20 3,669,669,375.96
Less: Cost of sales 3,084,291,674.08 3,269,110,540.85
Taxes and surcharges 1,508,984.24 7,177,383.09
Selling expense 318,153,101.41 378,868,998.55
Administrative expense 60,368,923.38 56,981,287.15
R&D expense 11,416,023.40 39,367,237.26
Finance costs 185,005,604.01 92,033,331.44
Including: Interest expense 246,745,502.24 132,054,494.09
Interest income 109,403,676.64 69,508,480.87
Asset impairment loss
Credit impairment loss
Add: Other income 13,187,319.83 29,928,292.31
Return on investment (“-” for loss) 64,398,528.84 222,948,489.00
Including: Share of profit or loss of joint ventures and
6,970,000.00
associates
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -3,005,381.67 34,142,182.67
Asset disposal income (“-” for loss)
2. Operating profit (“-” for loss) -426,703,884.32 113,149,561.60
Add: Non-operating income 235,648.04 13,919,212.26
Less: Non-operating expense 494,763.01 1,773,382.89
20
Konka Group Co., Ltd. First Quarter Report 2019
3. Profit before tax (“-” for loss) -426,962,999.29 125,295,390.97
Less: Income tax expense -107,517,405.52 -20,030,289.07
4. Net profit (“-” for net loss) -319,445,593.77 145,325,680.04
4.1 Net profit from continuing operations (“-” for net loss)
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income, net of tax 5,222,526.42
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined benefit
pension 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 of the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to profit or loss 5,222,526.42
5.2.1 Other comprehensive income that will be 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 Gain/Loss on changes in the fair value of available-for-sale
4,296,185.76
financial assets
5.2.4 Other comprehensive income arising from the
reclassification of financial assets
5.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial assets
5.2.6 Allowance for credit impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the translation of foreign
926,340.66
currency-denominated financial statements
5.2.9 Other
6. Total comprehensive income -319,445,593.77 150,548,206.46
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
21
Konka Group Co., Ltd. First Quarter Report 2019
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 11,629,972,953.14 5,754,785,966.74
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
Net increase in proceeds from disposal of financial assets at fair
value through profit or loss
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 307,323,363.61 168,573,547.32
Cash generated from other operating activities 1,487,656,643.30 172,592,473.35
Subtotal of cash generated from operating activities 13,424,952,960.05 6,095,951,987.41
Payments for commodities and services 12,464,112,932.57 6,072,157,862.54
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 financial assets held for trading purposes
Net increase in interbank loans granted
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 548,246,765.80 481,603,150.56
Taxes paid 159,596,824.94 201,309,910.91
Cash used in other operating activities 793,736,581.46 360,246,580.12
Subtotal of cash used in operating activities 13,965,693,104.77 7,115,317,504.13
Net cash generated from/used in operating activities -540,740,144.72 -1,019,365,516.72
2. Cash flows from investing activities:
Proceeds from disinvestment 71,798,210.00 37,303,231.61
Return on investment 18,560,027.29 27,461,877.60
22
Konka Group Co., Ltd. First Quarter Report 2019
Net proceeds from the disposal of fixed assets, intangible assets and
27,086.77 26,132.00
other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 50,000,000.00 420,950,000.00
Subtotal of cash generated from investing activities 140,385,324.06 485,741,241.21
Payments for the acquisition of fixed assets, intangible assets and
198,262,328.78 87,522,934.00
other long-lived assets
Payments for investments 1,116,840,150.00 8,378,256.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other business
units
Cash used in other investing activities 33,420.00 623,480,000.00
Subtotal of cash used in investing activities 1,315,135,898.78 719,381,190.00
Net cash generated from/used in investing activities -1,174,750,574.72 -233,639,948.79
3. Cash flows from financing activities:
Capital contributions received 69,775,272.10 26,400,000.00
Including: Capital contributions by non-controlling interests to
69,775,272.10 26,400,000.00
subsidiaries
Borrowings obtained 6,036,407,744.97 2,430,850,602.39
Net proceeds from the issuance of bonds 2,491,250,000.00
Cash generated from other financing activities
Subtotal of cash generated from financing activities 8,597,433,017.07 2,457,250,602.39
Repayments of borrowings 5,791,211,803.51 2,184,187,298.05
Payments for interest and dividends 130,287,756.06 86,485,560.15
Including: Dividends paid by subsidiaries to non-controlling
672,569.18
interests
Cash used in other financing activities 113,256,202.85
Subtotal of cash used in financing activities 6,034,755,762.42 2,270,672,858.20
Net cash generated from/used in financing activities 2,562,677,254.65 186,577,744.19
4. Effect of foreign exchange rate changes on cash and cash
-28,585,274.94 -42,957,026.83
equivalents
5. Net increase in cash and cash equivalents 818,601,260.27 -1,109,384,748.15
Add: Cash and cash equivalents, beginning of the period 3,434,149,481.72 3,097,899,703.76
6. Cash and cash equivalents, end of the period 4,252,750,741.99 1,988,514,955.61
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
23
Konka Group Co., Ltd. First Quarter Report 2019
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 5,741,645,965.28 4,460,261,836.82
Tax rebates 2,001,311.86 49,651,754.59
Cash generated from other operating activities 2,888,350,859.75 400,528,693.60
Subtotal of cash generated from operating activities 8,631,998,136.89 4,910,442,285.01
Payments for commodities and services 4,822,152,505.81 4,046,918,162.79
Cash paid to and for employees 228,776,897.37 308,420,198.90
Taxes paid 27,043,199.31 63,378,125.20
Cash used in other operating activities 3,497,902,432.17 1,120,437,119.07
Subtotal of cash used in operating activities 8,575,875,034.66 5,539,153,605.96
Net cash generated from/used in operating activities 56,123,102.23 -628,711,320.95
2. Cash flows from investing activities:
Proceeds from disinvestment 4,538,210.00
Return on investment 20,974,260.08 33,036,245.41
Net proceeds from the disposal of fixed assets, intangible assets
75,760.33 26,132.00
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 68,811,385.15 517,743,720.30
Subtotal of cash generated from investing activities 94,399,615.56 550,806,097.71
Payments for the acquisition of fixed assets, intangible assets and
37,545,366.80 39,045,066.97
other long-lived assets
Payments for investments 419,430,000.00 212,000,000.00
Net payments for the acquisition of subsidiaries and other business
units
Cash used in other investing activities 2,341,938,500.00 692,763,165.04
Subtotal of cash used in investing activities 2,798,913,866.80 943,808,232.01
Net cash generated from/used in investing activities -2,704,514,251.24 -393,002,134.30
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained 1,797,521,590.00 763,416,364.16
Net proceeds from the issuance of bonds 2,491,250,000.00
Cash generated from other financing activities
Subtotal of cash generated from financing activities 4,288,771,590.00 763,416,364.16
Repayments of borrowings 1,517,544,630.00 667,515,069.15
24
Konka Group Co., Ltd. First Quarter Report 2019
Payments for interest and dividends 103,058,776.61 81,697,528.08
Cash used in other financing activities 85,309.60
Subtotal of cash used in financing activities 1,620,688,716.21 749,212,597.23
Net cash generated from/used in financing activities 2,668,082,873.79 14,203,766.93
4. Effect of foreign exchange rate changes on cash and cash
-11,843,842.05 -19,141,408.56
equivalents
5. Net increase in cash and cash equivalents 7,847,882.73 -1,026,651,096.88
Add: Cash and cash equivalents, beginning of the period 1,497,794,555.85 1,743,269,944.67
6. Cash and cash equivalents, end of the period 1,505,642,438.58 716,618,847.79
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 4,348,144,129.53 4,348,144,129.53
Trading financial assets N/A 5,464,984.92 5,464,984.92
Financial assets at fair value through
5,464,984.92 N/A -5,464,984.92
profit or loss
Notes and accounts receivable 7,787,765,540.57 7,787,765,540.57
Including: Notes receivable 3,329,711,954.15 3,329,711,954.15
Accounts receivable 4,458,053,586.42 4,458,053,586.42
Prepayments 1,036,979,167.56 1,036,979,167.56
Other receivables 410,804,180.50 410,804,180.50
Including: Interest receivable 4,059,682.40 4,059,682.40
Dividends receivable 547,848.62 547,848.62
Inventories 5,487,605,227.05 5,487,605,227.05
Current portion of non-current assets 22,318,208.13 22,318,208.13
Other current assets 2,744,216,141.98 2,744,216,141.98
Total current assets 21,843,297,580.24 21,843,297,580.24
Non-current assets:
Available-for-sale financial assets 633,664,881.33 N/A -633,664,881.33
25
Konka Group Co., Ltd. First Quarter Report 2019
Long-term receivables 390,793,038.05 390,793,038.05
Long-term equity investments 2,637,780,825.53 2,637,780,825.53
Investments in other equity
N/A 633,664,881.33 633,664,881.33
instruments
Investment property 210,824,355.72 210,824,355.72
Fixed assets 2,410,226,495.81 2,410,226,495.81
Construction in progress 2,176,871,530.80 2,176,871,530.80
Intangible assets 737,776,686.34 737,776,686.34
Goodwill 855,691,423.75 855,691,423.75
Long-term prepaid expense 111,223,426.77 111,223,426.77
Deferred income tax assets 639,433,954.30 639,433,954.30
Other non-current assets 337,477,690.39 337,477,690.39
Total non-current assets 11,141,764,308.79 11,141,764,308.79
Total assets 32,985,061,889.03 32,985,061,889.03
Current liabilities:
Short-term borrowings 13,884,132,931.63 13,884,132,931.63
Trading financial liabilities N/A 2,459,603.25 2,459,603.25
Financial liabilities at fair value through
2,459,603.25 N/A -2,459,603.25
profit or loss
Notes and accounts payable 5,225,053,739.80 5,225,053,739.80
Advances from customers 723,227,529.20 723,227,529.20
Payroll payable 376,506,567.71 376,506,567.71
Taxes payable 288,004,192.44 288,004,192.44
Other payables 2,024,657,277.74 2,024,657,277.74
Including: Interest payable 27,230,631.41 27,230,631.41
Current portion of non-current
151,792,404.13 151,792,404.13
liabilities
Total current liabilities 22,675,834,245.90 22,675,834,245.90
Non-current liabilities:
Long-term borrowings 445,000,000.00 445,000,000.00
Long-term payables 128,374,597.41 128,374,597.41
Long-term Payroll payable 8,792,614.98 8,792,614.98
Provisions 21,772,898.37 21,772,898.37
Deferred income 112,899,128.24 112,899,128.24
Deferred income tax liabilities 141,020,093.34 141,020,093.34
26
Konka Group Co., Ltd. First Quarter Report 2019
Total non-current liabilities 857,859,332.34 857,859,332.34
Total liabilities 23,533,693,578.24 23,533,693,578.24
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Capital reserves 208,356,624.21 208,356,624.21
Other comprehensive income -10,538,219.08 -10,538,219.08
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 4,271,408,192.21 4,271,408,192.21
Total equity attributable to owners of
8,104,736,790.53 8,104,736,790.53
the Company as the parent
Non-controlling interests 1,346,631,520.26 1,346,631,520.26
Total owners’ equity 9,451,368,310.79 9,451,368,310.79
Total liabilities and owners’ equity 32,985,061,889.03 32,985,061,889.03
Notes for adjustment
Financial assets at fair value through profit or loss, formerly recognized as “financial assets at fair
value through profit or loss”, are now recognized as “trading financial assets” according to the new
accounting rules governing financial instruments and presented as “trading financial assets”
according to the CK〔2018〕No. 15 Document. This change has no impact on equities or profit/loss.
Equity investments with the Company having significant influence on the investees, formerly
recognized as “available-for-sale financial assets”, are now recognized as “financial assets at fair
value through other comprehensive income” according to the new accounting rules governing
financial instruments and presented as “investments in other equity instruments” according to the
CK〔2018〕No. 15 Document. And such equity investments are measured at cost. This change has
no impact on equities or profit/loss.
Financial liabilities at fair value through profit or loss, formerly recognized as “financial liabilities
at fair value through profit or loss”, are now recognized as “trading financial liabilities” according
to the new accounting rules governing financial instruments and presented as “trading financial
liabilities” according to the CK〔2018〕No. 15 Document. This change has no impact on equities or
profit/loss.
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 2,124,335,536.69 2,124,335,536.69
Trading financial assets N/A 5,464,984.92 5,464,984.92
Financial assets at fair value through
5,464,984.92 N/A -5,464,984.92
profit or loss
Notes and accounts receivable 9,608,713,113.32 9,608,713,113.32
27
Konka Group Co., Ltd. First Quarter Report 2019
Including: Notes receivable 2,181,466,683.90 2,181,466,683.90
Accounts receivable 7,427,246,429.42 7,427,246,429.42
Prepayments 1,019,335,571.49 1,019,335,571.49
Other receivables 6,667,463,126.57 6,667,463,126.57
Including: Interest receivable 5,769,663.24 5,769,663.24
Inventories 254,225,716.41 254,225,716.41
Other current assets 77,249,216.99 77,249,216.99
Total current assets 19,756,787,266.39 19,756,787,266.39
Non-current assets:
Available-for-sale financial assets 326,164,881.33 N/A -326,164,881.33
Long-term equity investments 6,182,962,034.71 6,182,962,034.71
Investments in other equity
N/A 326,164,881.33 326,164,881.33
instruments
Investment property 210,824,355.72 210,824,355.72
Fixed assets 462,721,018.30 462,721,018.30
Construction in progress 157,356,696.30 157,356,696.30
Intangible assets 83,593,959.11 83,593,959.11
Long-term prepaid expense 80,388,949.97 80,388,949.97
Deferred income tax assets 516,879,201.66 516,879,201.66
Other non-current assets 20,000,000.00 20,000,000.00
Total non-current assets 8,040,891,097.10 8,040,891,097.10
Total assets 27,797,678,363.49 27,797,678,363.49
Current liabilities:
Short-term borrowings 8,179,564,987.70 8,179,564,987.70
Trading financial liabilities N/A 2,459,603.25 2,459,603.25
Financial liabilities at fair value through
2,459,603.25 N/A -2,459,603.25
profit or loss
Notes and accounts payable 9,990,213,911.08 9,990,213,911.08
Advances from customers 306,650,717.69 306,650,717.69
Payroll payable 146,199,496.44 146,199,496.44
Taxes payable 10,913,871.30 10,913,871.30
Other payables 2,011,494,378.65 2,011,494,378.65
Including: Interest payable 24,158,666.48 24,158,666.48
Current portion of non-current
40,000,000.00 40,000,000.00
liabilities
28
Konka Group Co., Ltd. First Quarter Report 2019
Total current liabilities 20,687,496,966.11 20,687,496,966.11
Non-current liabilities:
Long-term borrowings 245,000,000.00 245,000,000.00
Provisions 206,591.51 206,591.51
Deferred income 75,705,476.93 75,705,476.93
Deferred income tax liabilities 751,345.42 751,345.42
Total non-current liabilities 321,663,413.86 321,663,413.86
Total liabilities 21,009,160,379.97 21,009,160,379.97
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Capital reserves 114,018,066.79 114,018,066.79
Other comprehensive income -1,182,217.31 -1,182,217.31
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 3,040,171,940.85 3,040,171,940.85
Total owners’ equity 6,788,517,983.52 6,788,517,983.52
Total liabilities and owners’ equity 27,797,678,363.49 27,797,678,363.49
29
Konka Group Co., Ltd. First Quarter Report 2019
Notes for adjustment
Financial assets at fair value through profit or loss, formerly recognized as “financial assets at fair
value through profit or loss”, are now recognized as “trading financial assets” according to the new
accounting rules governing financial instruments and presented as “ trading financial assets ”
according to the CK〔2018〕No. 15 Document. This change has no impact on equities or profit/loss.
Equity investments with the Company having significant influence on the investees, formerly
recognized as “available-for-sale financial assets”, are now recognized as “financial assets at fair
value through other comprehensive income ” according to the new accounting rules governing
financial instruments and presented as “investments in other equity instruments” according to the
CK〔2018〕No. 15 Document. And such equity investments are measured at cost. This change has
no impact on equities or profit/loss.
Financial liabilities at fair value through profit or loss, formerly recognized as “financial liabilities
at fair value through profit or loss”, are now recognized as “trading financial liabilities” according
to the new accounting rules governing financial instruments and presented as “ trading financial
liabilities” according to the CK〔2018〕No. 15 Document. This change has no impact on equities or
profit/loss.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
Standards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent
auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
Konka Group Co., Ltd.
29 April 2019
30
