Konka Group Co., Ltd. Interim Report 2024
KONKA GROUP CO., LTD.
INTERIM REPORT 2024
2024-42
August 2024
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Konka Group Co., Ltd. Interim Report 2024
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.
Cao Shiping, the Company’s legal representative, Nie Yong, the Company’s Chief Financial
Officer (CFO), and Ping Heng, 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 Company has no interim dividend plan, either in the form of cash or stock.
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. Interim Report 2024
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 8
Part III Management Discussion and Analysis..............................................................................11
Part IV Corporate Governance.......................................................................................................22
Part V Environmental and Social Responsibility.......................................................................... 24
Part VI Significant Events............................................................................................................... 36
Part VII Share Changes and Shareholder Information................................................................50
Part VIII Preferred Shares.............................................................................................................. 54
Part IX Corporate Bonds.................................................................................................................55
Part X Financial Statements............................................................................................................59
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Konka Group Co., Ltd. Interim Report 2024
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 originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period; and
3. The documents above are available at the Secretariat of the Board.
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Konka Group Co., Ltd. Interim Report 2024
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.
Haimen Konka Nantong 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.
Shenzhen Kangcheng Shenzhen Kangcheng Technology Innovation and Development 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.
XingDa HongYe GuangDong XingDa HongYe Electronic 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.
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.
Yibin Konka Technology Park Yibin Konka Technology Park Operation Co., Ltd.
Konka Capital Shenzhen Konka Capital Equity Investment Management Co., Ltd.
Konka Suiyong Konka Suiyong Investment (Shenzhen) Co., Ltd.
Shengxing Industrial Shenzhen Konka Shengxing Industrial Co., Ltd.
Zhitong Technology Shenzhen Konka Zhitong Technology Co., Ltd.
Konka Electronic Material Konka Electronic Material Technology (Shenzhen) Co., Ltd.
Beijing Konka Electronic Beijing Konka Electronic Co., Ltd.
Tianjin Konka Tianjin Konka Technology 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.
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Konka Group Co., Ltd. Interim Report 2024
Shenzhen KONSEMI Shenzhen KONSEMI Co., Ltd.
Chongqing Konka Chongqing Konka Technology Development 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.
Konka Cross-border (Hebei) Konka Cross-border (Hebei) Technology Development 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.
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 Konka Dongguan Konka Electronic Co., Ltd.
Suining Konka Smart Suining Konka Smart Technology Co., Ltd.
Chongqing Optoelectronic Technology Chongqing Konka Optoelectronic Technology Co., Ltd.
Yibin Kangrun Yibin Kangrun Environmental Technology Co., Ltd.
Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment 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 Jiangxi High Transparent Substrate 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.
Shanxi Konka Intelligent Shanxi 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.
Konka Unifortune Shenzhen Konka Unifortune Technology Co., Ltd.
Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co., Ltd.
Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co., Ltd.
Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd.
Hainan Konka Technology Hainan Konka 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.
Konka Eco-Development Shenzhen Konka Eco-Development Investment Co., Ltd.
Konka Europe Konka (Europe) Co., Ltd.
Hong Kong Konka Hong Kong Konka Limited
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
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Konka Group Co., Ltd. Interim Report 2024
Kanghao Technology Kanghao Technology Co., Ltd.
Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co., Limited
Chain Kingdom Semiconductor (Shaoxing) Chain Kingdom Semiconductor (Shaoxing) Co., Ltd.
Hongjet Hongjet (Hong Kong) Company Limited
Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co., Ltd.
Anlu Konka Anlu Konka Industry Operation Service Co. Ltd.
Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Guizhou Konka New Material Technology Guizhou Konka New Material Technology Co., Ltd.
Guangdong Xinwei Guangdong Xinwei Semiconductor Co., Ltd.
Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co., Ltd.
Nantong Kanghai Nantong Kanghai Technology Industry Development Co., Ltd.
Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co., Ltd.
Jiangxi Konka High-tech Park Jiangxi Konka High-tech Park Operation and Management Co., Ltd.
Shangrao Konka Electronic Technology
Shangrao Konka Electronic Technology Innovation Co., Ltd.
Innovation
Guizhou Konka New Energy Guizhou Konka New Energy Material Technology Co., Ltd.
Zhejiang Konka Electronic Zhejiang Konka Electronics Co., Ltd.
Zhejiang Konka Technology Industry Zhejiang Konka Technology Industry Development Co., Ltd.
Xi'an Konka Intelligent Xi'an Konka Intelligent Appliance Co., Ltd.
Xi'an Konka Network Xi'an Konka Network Technology Co., Ltd.
Xi'an Kanghong Technology Industry Xi'an Kanghong Technology Industry Development Co., Ltd.
Xi'an Konka Intelligent Technology Xi'an Konka Intelligent Technology Development Co., Ltd.
Anhui Konka Low Carbon Anhui Konka Low Carbon Technology Co., Ltd.
Kanghong Xintong Shenzhen Kanghong Xintong Investment Partnership (Limited Partnership)
Songyang Industry Operation Songyang Konka Smart Industry Operation Management Co., Ltd.
Kangyan Technology Shenzhen Kangyan Technology Co., Ltd.
Konka Photovoltaic Technology Konka Photovoltaic Technology Co., Ltd.
Songyang Konka Intelligent Songyang Konka Intelligent Technology Development Co., Ltd.
Konka North China Konka North China (Tianjin) Technology Co., Ltd.
Digital Technology Shenzhen Konka Digital Technology Development 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. Interim Report 2024
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. (if any) 康佳集团
Company name in English (if any) KONKA GROUP CO.,LTD
Abbr. (if any) KONKA GROUP
Legal representative Cao Shiping
II Contact Information
Board Secretary Securities Representative
Name Li Chunlei Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, 28 Keji Board Secretariat, 24/F, Konka R&D Center, 28 Keji
South Twelfth Road, Science and Technology Park, South Twelfth Road, Science and Technology Park,
Address
Yuehai Street, Nanshan District, Shenzhen, Guangdong Yuehai Street, Nanshan District, Shenzhen, Guangdong
Province, China Province, China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
Email
szkonka@konka.com szkonka@konka.com
address
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and
their zip codes, website address, email address and other contact information of the Company in
the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the
2023 Annual Report.
2. Media for Information Disclosure and Place where this Report is Lodged
Indicate by tick mark whether any change occurred to the information disclosure media and the
place for lodging the Company’s periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The website of the stock exchange, the media and other websites where the Company’s periodic
reports are disclosed, as well as the place for lodging such reports did not change in the Reporting
Period. The said information can be found in the 2023 Annual Report.
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Konka Group Co., Ltd. Interim Report 2024
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable √ Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2024 H1 2023 Change (%)
Operating revenue (RMB) 5,412,530,372.47 10,472,061,171.94 -48.31%
Net profit attributable to the listed
-1,087,581,842.55 -193,240,232.33 -462.81%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -1,103,078,610.72 -891,594,370.41 -23.72%
exceptional gains and losses (RMB)
Net cash generated from/used in operating
-439,338,365.13 -201,550,105.24 -117.98%
activities (RMB)
Basic earnings per share (RMB/share) -0.4517 -0.0803 -462.52%
Diluted earnings per share (RMB/share) -0.4517 -0.0803 -462.52%
Weighted average return on equity (%) -21.33% -2.55% -18.78%
30 June 2024 31 December 2023 Change (%)
Total assets (RMB) 34,324,017,267.75 35,824,818,212.66 -4.19%
Equity attributable to the listed company’s
4,553,306,674.94 5,644,401,184.65 -19.33%
shareholders (RMB)
V 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 such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains and Losses
√ Applicable □ Not applicable
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Konka Group Co., Ltd. Interim Report 2024
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 837,373.68
Government grants recognised in current profit or loss (exclusive of those that are closely
related to the Company's normal business operations and given in accordance with defined
55,171,603.63
criteria and in compliance with government policies, and have a continuing impact on the
Company's profit or loss)
Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial
enterprise, as well as on disposal of financial assets and liabilities (exclusive of the effective -165,919,193.12
portion of hedges that arise in the Company’s ordinary course of business)
Gain or loss on loan entrustments 63,154,861.04
Non-operating income and expense other than the above 11,832,131.66
Other gains and losses that meet the definition of exceptional gain/loss 30,000,710.67
Less: Income tax effects -29,890,840.20
Non-controlling interests effects (net of tax) 9,471,559.59
Total 15,496,768.17
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
Reversal of the In March 2024, a majority-owned subsidiary of the Company in Dalian entered the
recognised bankruptcy and liquidation procedure according to the decision by a court of law. An
excess losses in 31,971,388.49 administrator appointed by the court has taken over the relevant information and physical
the previous objects of the subsidiary, and the Company no longer exercises control over the
periods subsidiary and has thus reversed the recognised excess losses in the previous periods.
Gain on the de-
recognition of
financial assets -1,970,677.82 Gain on the de-recognition of notes receivable
measured at
amortised cost
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 rebates on Government subsidies given in the Company’s ordinary course of business at fixed
1,596,783.94
software quotas or amounts as per government’s uniform standards
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Konka Group Co., Ltd. Interim Report 2024
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
The Company is principally engaged in consumer electronics, semiconductor and memory chip,
PCB, etc. More information is provided below:
(I) The consumer electronics business
This division primarily comprises the multimedia sub-division and the white goods sub-division,
with details as follows:
1. The multimedia business
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.
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.
According to statistics from AVC, the retail sales in the domestic color TV market totaled 13.51
million units in the first half of 2024, down 7.9% year on year. In the future, with the integration
of emerging technologies such as 5G, the Internet of Things, artificial intelligence and new
displays with consumer electronics and the introduction of consumption policies, the color TV
industry's structure will continue to be upgraded.
2. The white goods business
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
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Konka Group Co., Ltd. Interim Report 2024
and downstream sales processes, and continuously improved the product sales structure and
competitiveness of the white goods business.
According to statistics from AVC, the demand in the domestic air conditioner market was under
pressure. The domestic air conditioner sales from all channels in the first half of 2024 totaled
RMB111.4 billion, down 14.5% year on year. Regarding refrigerators, due to the trade-in policy,
people were gradually making purchases to meet their demand, and the domestic refrigerator market
was stable on the whole. The domestic refrigerator sales from all channels in the first half of 2024
totaled RMB65.2 billion, up 0.4% year on year. As for washing machines, the demand in the
domestic washing machine market rebounded slightly, but the average price continuously fell. The
domestic washing machine (excluding dry cleaning machine) sales from all channels in the first half
of 2024 totaled RMB42.7 billion, up 1.8% year on year. With the recovery of demand for trade-in
and the upgrade of people's quality of life, steady development and product upgrade will become
the main features of the white goods market.
(II) The semiconductor and memory chip business
Currently, the Company is engaged in memory chips, optoelectronics, etc. In memory chips, the
Company primarily engages in packaging,testing and sales. In the field of optoelectronics, the
Company mainly focused on three business segments, i.e. micro LED and mini LED chips, mass
transfer, and display, and promoted the transformation of its optoelectronics business from
technology R&D to industrialization. After industrialization, the operating profit will derive from
the difference between product cost and selling price.
The semiconductor industry is a strategic, fundamental and leading industry that supports economic
and social development and safeguards national security. Among them, semiconductor storage is the
largest subdivision in the semiconductor industry in recent years. 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 and Mini LED are the prevailing trend and development direction of future display
technology. The industrial chain is divided into four main links: upstream chip manufacturing and
mass transfer, midstream panel manufacturing, and downstream complete machine application. The
Micro LED and Mini LED have wide industrial application and a broad market.
(III) The PCB business
The Company's PCB business mainly involved dealing in metal substrate products, thick copper
products, high-density multi-layer and HDI (High Density Interconnect) products and rigid-flex
PCB products. The Company adopted a B2B business model, and its products were concentrated on
four major electronic fields, namely new energy, automotive electronics, communications and data
centers, and new consumer electronics. The Company made profits from the product price
difference.
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Konka Group Co., Ltd. Interim Report 2024
II Core Competitiveness Analysis
The Company’s core competitiveness lies in its manufacturing ability, R&D ability, brand,
marketing network and human resources. In terms of manufacturing ability, the Company has
carried out intelligent upgrading of manufacturing bases in Anhui, Dongguan, Suining, Xinxiang,
etc., of which the Anhui Konka plant has been awarded the title of "National Intelligent
Manufacturing Demonstration Factory", with an advanced intelligent manufacturing level in the
industry. It has developed a three-tier R&D system of “Research institute+key labs+product
development 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 the micro LED project. 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 48
branches, more than 300 offices, and more than 5,000 after-sales service shops 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, Pinduoduo and other mainstream e-commerce platforms to
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.
III Analysis of Main Businesses
(I) Overview
During the Reporting Period, the Company followed the new development strategy of "One Axis,
Two Wheels and Three Growth Drivers," and adhered to long-term value-oriented principles as well
as the operational strategy of focusing on the long term and improving specialization to become
stronger. It also deepened integration for specialization and implemented lean management to
promote high-quality development. During the Reporting Period, the Company promoted business
restructuring by optimizing some business lines which did not produce a good synergic effect with
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Konka Group Co., Ltd. Interim Report 2024
the main business and had a low gross margin. As a result, the Company's operating revenue
declined year on year. Affected by the following factors, the Company's net profit attributable to its
shareholders for the first half of 2024 was negative:
1. In the first half of 2024, the Company actively adjusted its sales strategy for its domestic color
TV business and optimized the product structure. Despite the year-over-year increase in the revenue
and gross profit and the gradual improvement of the operations, the Company's color TV business
still suffered a deficit due to the limited room for reduction of necessary expenses and the
continuously intensifying competition in the industry.
2. In the first half of 2024, due to the changes in the prices of the trading financial assets held by the
Company, the Company's net loss on changes in fair value was approximately RMB-175 million,
which affected the net profit attributable to its shareholders.
3. In the first half of 2024, based on the principle of prudence, the Company set aside provisions for
asset impairment of approximately RMB255 million in accordance with accounting policies and
estimates, resulting in a decrease in profit.
4. In the first half of 2024, the Company's semiconductor business was still at the initial phase of
industrialization. In spite of the heavy investment, efficient large-scale production had not been
achieved, which affected the Company's overall operating profit.
5. The Company focused on two lines of business, "consumer electronics + semiconductor", and,
with the industrial development needs taken into account, strategically reduced the investment
intensity, hence a year-on-year decline in related income.
(II) Year-on-year changes in key financial data:
Unit: RMB
Change
H1 2024 H1 2023 Main reason for change
(%)
Operating The Company took the initiative to
5,412,530,372.47 10,472,061,171.94 -48.31%
revenue optimise the industry trading business,
which had a lower gross profit level,
Cost of sales 5,009,969,615.02 10,079,343,784.11 -50.29% resulting in a decline in its operating
revenue.
Selling expense 495,376,454.26 558,536,665.53 -11.31%
Administrative
315,946,020.02 390,244,567.77 -19.04%
expense
Year-on-year decrease in exchange
Finance costs 280,912,375.66 199,075,624.50 41.11%
gains in the Reporting Period
Income tax Year-on-year decrease in net profit in
-51,275,843.13 -16,710,667.58 -206.84%
expense the Reporting Period
R&D investments 214,578,026.81 237,033,893.11 -9.47%
Net cash A lower percentage of cash payments
generated for commodities and services in total
from/used in -439,338,365.13 -201,550,105.24 -117.98% sales revenue in the Reporting Period
operating compared with the same period of last
activities year
Net cash
Decreased cash proceeds from
generated
disinvestment in the Reporting Period
from/used in -315,227,824.59 433,888,761.35 -172.65%
compared with the same period of last
investing
year
activities
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Konka Group Co., Ltd. Interim Report 2024
Net cash
Increased cash repayment of
generated
borrowings in the Reporting Period
from/used in -548,853,897.53 291,683,622.46 -288.17%
compared with the same period of last
financing
year
activities
Net increase in
cash and cash -1,296,409,839.47 568,156,645.67 -328.18%
equivalents
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes.
(III) Breakdown of operating revenue:
Unit: RMB
H1 2024 H1 2023
As % of total As % of total Change
Operating revenue operating revenue Operating revenue operating revenue (%)
(%) (%)
Total 5,412,530,372.47 100% 10,472,061,171.94 100% -48.31%
By operating division
Consumer
4,754,524,671.36 87.84% 4,773,146,814.81 45.58% -0.39%
electronics
Semiconductor
82,962,696.19 1.53% 2,036,903,764.93 19.45% -95.93%
and Memory chipr
Other 575,043,004.92 10.63% 3,662,010,592.20 34.97% -84.30%
By product category
White goods 2,247,070,655.48 41.52% 2,285,781,923.95 21.83% -1.69%
Color TVs 2,115,790,827.61 39.09% 1,919,054,194.60 18.33% 10.25%
PCB 231,558,538.52 4.28% 245,209,214.94 2.34% -5.57%
Semiconductor
82,962,696.19 1.53% 2,036,903,764.93 19.45% -95.93%
and memory chipr
Other 735,147,654.67 13.58% 3,985,112,073.52 38.05% -81.55%
By operating segment
Domestic 1,366,369,132.78 25.24% 3,900,990,088.37 37.25% -64.97%
Overseas 4,046,161,239.69 74.76% 6,571,071,083.57 62.75% -38.42%
(IV) Operating division, product category or operating segment contributing over 10% of
operating revenue or operating profit:
√ Applicable □ Not applicable
Unit: RMB
Gross YoY change YoY change in YoY change in
Operating revenue Cost of sales profit in operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Consumer
4,754,524,671.36 4,447,363,370.44 6.46% -0.39% -1.32% 0.88%
electronics
By product category
White goods 2,247,070,655.48 2,014,585,214.49 10.35% -1.69% -0.29% -1.26%
Color TVs 2,115,790,827.61 2,069,113,672.93 2.21% 10.25% 6.07% 3.86%
By operating segment
Domestic 4,046,161,239.69 3,696,751,585.18 8.64% -38.42% -40.94% 3.89%
Overseas 1,366,369,132.78 1,313,218,029.84 3.89% -64.97% -65.62% 1.82%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
15
Konka Group Co., Ltd. Interim Report 2024
□ Applicable √ Not applicable
IV Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Main resource/reason Recurrent or not
Return on investment 5,047,444.22 -0.38% Not recurrent
Gain/loss on changes Changes in the fair value of
-179,800,523.76 13.50% Not recurrent
in fair value financial asset investments
Impairments of receivables
Asset impairments -255,092,300.13 19.15% Not recurrent
and inventories
Increased gains that were not
Non-operating income 15,773,523.89 -1.18% directly related to the Not recurrent
Company’s routine operations
Non-operating expense 6,155,804.84 -0.46% Not recurrent
V Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2024 31 December 2023 Reason
Change in
for
As % of total As % of total percentage
Amount Amount material
assets assets (%)
change
Monetary
5,514,370,579.43 16.07% 6,506,359,577.02 18.16% -2.09%
assets
Accounts
1,856,961,440.23 5.41% 1,726,545,973.08 4.82% 0.59%
receivable
Contract assets 2,712,594.37 0.01% 2,190,385.93 0.01% 0.00%
Inventories 3,404,537,028.08 9.92% 3,249,897,700.98 9.07% 0.85%
Investment
1,516,938,003.43 4.42% 1,470,226,723.87 4.10% 0.32%
property
Long-term
equity 5,500,299,082.95 16.02% 5,566,483,863.29 15.54% 0.48%
investments
Fixed assets 5,050,425,327.42 14.71% 5,218,297,745.16 14.57% 0.14%
Construction in
844,964,613.42 2.46% 860,899,498.68 2.40% 0.06%
progress
Right-of-use
199,746,862.53 0.58% 197,054,423.17 0.55% 0.03%
assets
Short-term
6,510,087,630.95 18.97% 6,390,592,056.27 17.84% 1.13%
borrowings
Contract
326,016,727.91 0.95% 527,975,160.12 1.47% -0.52%
liabilities
Long-term
7,205,788,337.63 20.99% 7,779,150,079.88 21.71% -0.72%
borrowings
Lease liabilities 165,941,212.56 0.48% 160,218,818.92 0.45% 0.03%
2. Major Assets Overseas
□ Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
Impairment
fair-value fair-value Purchased in Sold in the
Beginning allowance for Other Ending
Item changes in changes the Reporting Reporting
amount the Reporting changes amount
the Reporting charged to Period Period
Period
Period equity
Financial assets
16
Konka Group Co., Ltd. Interim Report 2024
1. Trading
financial
assets -
469,636,700. 294,937,209.
(derivative 174,699,491.
78 31
financial 47
assets
excluded)
4.
Investments
23,841,337.1 23,841,337.1
in other
6 6
equity
instruments
5. Other non-
current 2,009,676,39 23,742,683.6 1,985,908,47
-25,240.65
financial 8.00 2 3.73
assets
Subtotal of -
2,503,154,43 23,742,683.6 2,304,687,02
financial 174,724,732.
5.94 2 0.20
assets 12
173,396,326. 203,279,738. 173,396,326. 203,279,738.
Other
14 30 14 30
-
Total of the 2,676,550,76 203,279,738. 197,139,009. 2,507,966,75
174,724,732.
above 2.08 30 76 8.50
12
Financial
liabilities 0.00 0.00 0.00 0.00 0.00
Other changes
Unit: RMB
Gain/loss on Cumulative Impairment
fair-value fair-value allowance Purchased in Sold in the
Beginning Other
Item changes in the changes for the the Reporting Reporting Ending amount
amount changes
Reporting charged to Reporting Period Period
Period equity Period
Accounts
receivable 173,396,326.14 203,279,738.30 173,396,326.14 203,279,738.30
financing
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
4. Restricted Asset Rights as at the Period-End
Ending carrying value
Item Reason for restriction
(RMB)
Of which, RMB439,611,924.45 is security deposits put in pledge for loans or the
issuance of bank acceptance bills; RMB664.24 is in the fiscal custody account;
Monetary assets 1,135,996,069.35
RMB469,680,000 is term deposits that cannot be withdrawn in advance; and
RMB226,703,480.66 is restricted for other reasons.
Accounts
1.059,896.50 Pledge loan
receivable
Notes
135,131,288.11 Pledged to issue bills
receivable
Inventories 477,577,793.08 Mortgage loan
Investment
643,316,578.58 Mortgage loan
property
Fixed assets 1,599, 804,943.86 Mortgage loan, finance lease, and former shareholder guarantee
Intangible
602,911,241.32 Mortgage loan, finance lease, and former shareholder guarantee
assets
Construction in
46,810,437.16 Mortgage loan
progress
Total 4,642, 608,247.96
VI Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
17
Konka Group Co., Ltd. Interim Report 2024
Total investment amount in the Total investment amount in the same
Change
Reporting Period (RMB) period of last year (RMB)
383,427,125.49 541,154,096.54 -29.15%
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
Est Accumul
Accumulati P for not
Fixed Input im ative
Invest Indust ve actual r meeting
assets amount in Capital ate realized Disclosure Disclosu
ment ry input o the
Item invest the resource d revenues date (if re index
metho involv amount as g schedule
ment Reporting s rev as of the any) (if any)
d ed of the re and
or not Period en period-
period-end ss expected
ues end
revenues
Suining Konka Electr
Electronic Self- onic 37,205,02 598,131,97 Self-
Yes N/A 2018-10-17
Technology build industr 8.90 2.66 funded
Industrial Park y
Chongqing Self- http://w
Electr
Konka and ww.cnin
Self- onic 46,762,55 706,020,69
Semiconductor Yes bank N/A 2019-06-14
build industr 6.54 6.70 fo.com.c
Photoelectric loan-
y
Industrial Park funded n/new/in
Self- dex
Electr
Frestec and
Self- onic 68,122,04 527,567,60
Refrigeration Yes bank N/A 2020-07-21
build industr 6.98 8.05
Park loan-
y
funded
152,089,6 1,831,720,2
Total -- -- -- 32.42 77.41 -- -- -- -- --
The main body of the Frestec Refrigeration Park has been basically completed. The Suining Konka
Electronic Technology Industrial Park is under construction. Regarding the Semiconductor
Photoelectric Research Institute of Chongqing Konka Semiconductor Photoelectric Industrial Park,
the infrastructure of the first phase has been completed and accepted, with the remaining
infrastructure construction ongoing.
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Acco Accumu
Co untin Gain/Loss lated Sour
Initial Purcha Gain/lo
Variety de g Beginn on fair fair Sold in ce of
Name sed in ss in Ending
of of investment meas ing value value Reporti Accounti inves
of Report Reporti carryin
securit sec cost urem carryin changes in changes ng ng title tmen
security ing ng g value
y urit ent g value Reporting charged Period t
Period Period
y meth Period to funds
od equity
Domest Fair
469,63 - 294,93 Trading Self-
ic/Forei 003 Chutian 974,897,4 value
6,700.7 174,699,4 0.00 0.00 0.00 0.00 7,209.3 financial fund
gn 040 Dragon 30.42 meth 8 91.47 1 assets ed
stock od
Other securities
investments held at the 0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
469,63 - 294,93
974,897,4
Total 6,700.7
-- 174,699,4 0.00 0.00 0.00 0.00 7,209.3 -- --
30.42 8 91.47 1
Disclosure date of announcement on board’s approving 4 April 2023
18
Konka Group Co., Ltd. Interim Report 2024
securities investment (if any)
Disclosure date of announcement on shareholders’ meeting
N/A
approving securities investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: RMB’0,000
Total
Proporti Raised
Total Raised
Total on of Funds
Net Raised Funds Uses and
Method Total Raised Total Total Remaini
Year of Total Amount Funds Used for Flows of
for Raised Funds Raised Unused ng
Fundrais Raised of Used in Altered Unused
Fundrais Funds Used for Funds Raised Unused
ing Funds Raised the Purposes Raised
ing Used Altered Used for Funds for Over
Funds Reportin in the Funds
Purposes Altered Two
g Period Reportin
Purposes Years
g Period
Corporat
e bonds Not
2024 non- 150,000 149,520 150,000 150,000 0 0 0.00% 0 applicabl 0
publicly e
offered
Corporat
e bonds Not
2024 non- 40,000 39,872 0 0 0 0 0.00% 0 applicabl 0
publicly e
offered
Corporat
e bonds Not
2024 non- 40,000 39,872 0 0 0 0 0.00% 0 applicabl 0
publicly e
offered
Total -- 230,000 229,264 150,000 150,000 0 0 0.00% 0 -- 0
Statement on the overall use of the raised funds
1. Konka Group Co., Ltd.'s non-public offering of corporate bonds (Tranche I) to professional investors in 2024 was completed on 29 January
2024, and the funds raised during the Reporting Period have been used up. The Company has used the raised funds for the purposes specified
in the bond prospectus, and the accounts dedicated to the raised funds have been properly functioning;
2. Konka Group Co., Ltd.'s non-public offering of corporate bonds (Tranche II) (Type I) to professional investors in 2024 was completed on
18 March 2024. The raised funds were not used during the Reporting Period, and have been used up as at the date of approval of the
Company's semi-annual report. The Company has used the raised funds for the purposes specified in the bond prospectus, and the accounts
dedicated to the raised funds have been properly functioning;
3. Konka Group Co., Ltd.'s non-public offering of corporate bonds (Tranche II) (Type II) to professional investors in 2024 was completed on
18 March 2024. The raised funds were not used during the Reporting Period, and have been used up as at the date of approval of the
Company's semi-annual report. The Company has used the raised funds for the purposes specified in the bond prospectus, and the accounts
dedicated to the raised funds have been properly functioning.
(2) Projects for which the Company has undertaken to use with the raised funds
□ Applicable √ Not applicable
19
Konka Group Co., Ltd. Interim Report 2024
(3) Changes in the projects for which with the raised funds shall be used.
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
VIII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net
profit:
Unit: RMB
Relationshi
Principal Registered Operating Operating
Name p with the Total assets Net assets Net profit
activity capital revenue profit
Company
Shenzhen Manufactur
Konka ing and RMB1,000, 665,454,45 468,096,39 14,358,024. 4,286,739.8 3,418,686.0
Subsidiary
Circuit Co., sale of 000,000 7.25 4.68 49 6 9
Ltd. electronics
Hong Kong Export &
HKD500,0 3,090,370,8 445,907,27 1,016,346,1 15,140,702. 11,972,179.
Konka Co., Subsidiary import of
00 99.49 9.34 08.61 62 59
Ltd. electronics
Shenzhen
Konka
Manufactur
Telecomm
ing and RMB480,0 491,606,99 279,066,25 62,495,182. 5,793,265.0 5,793,265.0
unictions Subsidiary
sale of 00,000 4.09 3.69 96 1 1
Technolog
electronics
y Company
Limited
Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and
Subsidiary
disposed in the Reporting Period operating performance
Shenzhen Waikaida Technology Co., Ltd. De-registered For better allocation of assets
Chengdu Anren Konka Cultural and Creative
De-registered For better allocation of assets
Incubator Management Co., Ltd.
Shenzhen Konka Intelligent Manufacturing
De-registered For better allocation of assets
Technology Co., Ltd.
Information about principal subsidiaries and joint stock companies:
None
IX Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
20
Konka Group Co., Ltd. Interim Report 2024
X Risks Facing the Company and Countermeasures
In regard to the consumer electronics business, due to the increasingly fierce market competition,
operating pressure is mounting. With respect to the semiconductor business, economies of scale
have not been gained, despite the Company’s breakthroughs in core technologies, as it is still at
the initial phase of industrialisation. In response to the above risks, the Company will focus on
main business development, promote lean management, optimise asset allocation, accelerate to
expand the scale of the semiconductor business, and effectively strengthen profitability.
Consumer electronics business: For its color TV business, the Company will closely follow the
market development trends and supply chain price trends, study and judge consumers' demand in
advance, and promote the continuous iteration and upgrading of the product system through
institutionalization and systematization; it will also create exquisite products, enhance its
profitability through quality products, enhance its brand influence, and support improvement of
business operations. As regards the white goods business, the Company will strengthen its user-
centric mindset, accelerate the transformation of its product structure, drive brand value with
high-end products, and fully achieve synergy among all types of products and all links in the
chain during its operations, while focusing on channel innovation: For the domestic business, it
will vigorously develop interest-based e-commerce; as for export and OEM production, it will
deeply tap the markets in which it has advantages in the market grain-producing area, fill market
voids, and continuously improve its production scale and profitability.
In regard to the semiconductor business: first, the Company needs to maintain its technology
leadership and drive the industrialisation of Micro LEDs in a market-oriented manner. Meanwhile,
difficulties in chip and mass transfer technologies should continue to be tackled, based on
customer demand. Second, the Company will focus on sales to large customers to achieve scale
sales of commercial Mini LED products.
XI Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed an action plan for "dual improvement of quality and return".
□ Yes √ No
21
Konka Group Co., Ltd. Interim Report 2024
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Date of the
Meeting Type participa Date of disclosure Resolutions of the meeting
meeting
tion ratio
Extraordinar Resolutions of the 1st
The 1st Extraordinary 26 February
y General 23.81% 27 February 2024 Extraordinary General
General Meeting of 2024 2024
Meeting Meeting of 2024
Extraordinar Resolutions of the 2nd
The 2nd Extraordinary
y General 1.98% 18 March 2024 19 March 2024 Extraordinary General
General Meeting of 2024
Meeting Meeting of 2024
Annual
The 2023 Annual Resolutions of the 2023
General 23.48% 24 June 2024 25 June 2024
General Meeting Annual General Meeting
Meeting
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders
with Resumed Voting Rights
□ Applicable √ Not applicable
II Change of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
No such cases in the Reporting Period. For details, please refer to the Annual Report 2023.
On 26 August 2024, Mr. Liu Fengxi resigned from the positions of Chairman of the 10th Board of
Directors, Director and member of the Strategy Committee of the Board of Directors of the
Company due to work arrangement, and Mr. Yao Wei resigned from the position of Non-
Independent Director of the 10th Board of Directors of the Company as well as from his position in
the relevant Specialized Committee of the Board of Directors due to work arrangement. At the 31st
Meeting of the 10th Board of Directors of the Company held on 27 August 2024, Mr. Zhou Bin, the
Secretary of the Party Committee and Director of the Company, was elected as the Vice Chairman
(presiding) of the 10th Board of Directors of the Company to perform the duties of the Chairman of
the Board of Directors and preside over the work of the Board of Directors of the Company.
On 26 August 2024, Mr. Zhou Bin resigned from the position of President of the Company due to
work arrangement. At the 31st Meeting of the 10th Board of Directors of the Company held on 27
August 2024, Mr. Cao Shiping, the former Executive Vice President, was appointed as the
President of the Company, with a term of office consistent with the term of office of the current
senior management.
On 26 August 2024, Mr. Li Chunlei resigned from the position of Chief Financial Officer of the
Company due to work arrangement. At the 31st Meeting of the 10th Board of Directors of the
Company held on 27 August 2024, Mr. Nie Yong was appointed as the Chief Financial Officer of
the Company, with a term of office consistent with the term of office of the current senior
management.
22
Konka Group Co., Ltd. Interim Report 2024
On 26 August 2024, Mr. Wu Yongjun resigned from his position of Secretary of the Board of the
Company due to work arrangement. At the 31st Meeting of the 10th Board of Directors of the
Company held on 27 August 2024, Mr. Li Chunlei, the former Chief Financial Officer, was
appointed as the Secretary of the Board of the Company, with a term of office consistent with the
term of office of the current senior management.
On 26 August 2024, Mr. Li Hongtao resigned his position of Vice President of the Company due to
personal reasons.
III Interim Dividend Plan
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
23
Konka Group Co., Ltd. Interim Report 2024
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
Policies and industry standards pertaining to environmental protection
The Company abides by environmental protection laws and regulations, such as the Environmental
Protection Law of the People’s Republic of China, Water Pollution Prevention and Control Law of
the People’s Republic of China, Air Pollution Prevention and Control Law of the People’s Republic
of China, Noise Pollution Prevention and Control Law of the People’s Republic of China, Solid
Waste Pollution Prevention and Control Law of the People’s Republic of China, and others. The
water pollutant discharge standards include the Emission Standard of Water Pollutants for
Electroplating DB44/1597-2015 and the Water Pollutant Discharge Limit Standard of Guangdong
Province DB44/26-2001. The air pollutant emission standards include the Emission Standard of
Volatile Organic Compounds for Printing Industry DB44/815-2010, Emission Standard of
Electroplating Pollutants GB21900-2008, Emission Standard of Odorous Pollutants GB14554-93,
Emission Control Standard of Volatile Organic Compounds for Unorganized Emissions GB37822-
2019, Technical Specification for the Setting of Hazardous Waste Identification Signs HJ1276-2022,
and Pollution Control Standards for Hazardous Waste Storage GB18597-2023.
Status of Environmental Protection Administrative License
1. XingDa HongYe
XingDa HongYe received approval from the Zhongshan Environmental Protection Bureau to
establish and construct its facility in 2004 (ZH.H.J. [2004] No. 61), followed by subsequent
approvals under ZH.H.J.D. [2008] 06250 and ZH.H.J.D. [2010] 04469 in 2008 and 2010
respectively. After the original project of XingDa HongYe was put into production, it underwent
two acceptance stages: the first stage in 2008 (H.Y [2008] 02) and the second stage in 2012
(ZH.H.Y. Report [2012] 000092).
Xingda Hongye enlisted the services of the Zhongshan Environmental Protection Science Research
Institute in December 2012 to perform an environmental impact evaluation for their proposed
technological upgrade and expansion initiative. Following this, on 31 December 2012, the
Environmental Protection Bureau of Zhongshan City granted No. ZH.H.J.SH. (2012) 115 Approval
24
Konka Group Co., Ltd. Interim Report 2024
on the Environmental Impact Assessment Report for Technological Upgrade and Expansion
Program of GuangDong XingDa HongYe Electronic Co., Ltd. The scheme allowed for an increased
production of six-layer circuit boards, eight-layer and above circuit boards, and HDI boards, while
reducing the production of single-sided circuit boards. After the completion of the technological
upgrade and expansion, the production capacity was expected to reach a total of 200,000 square
meters for single-sided circuit boards per year, 250,000 square meters for double-sided circuit
boards per year, 300,000 square meters for four-layer circuit boards per year, 200,000 square meters
for six-layer circuit boards per year, 150,000 square meters for eight-layer and above circuit boards
per year, and 100,000 square meters for HDI boards per year. The technical renovation and
expansion project maintained the original plating equipment and process unchanged and added a
browning process to the existing production process. The additional plating capacity was all
outsourced. The technical renovation and expansion project began construction in 2013, was
completed in January 2018, and was commissioned from 10 February to 8 July 2018. The
construction of the expansion project met the requirements of the environmental impact report
approval and the conditions for environmental protection acceptance of the completed construction
project. In 2021, the national pollutant discharge permit of XingDa HongYe was renewed/replaced
with certificate number 91442000768405216J001P. In 2022, the national pollutant discharge permit
was changed, with certificate number 91442000768405216J001P. In 2023, the national pollutant
discharge permit was changed, with certificate number 91442000768405216J001P
2. Boluo Konka and Boluo Konka Precision
Boluo Konka Precision Technology Co., Ltd. was approved by the Huizhou Environmental
Protection Bureau in 2000 (H.S.H.J. [2000] No.23) and began production the same year. Its
pollution discharge permit number is 91441322721121283N001U.
Boluo Konka enlisted the services of Huizhou Environmental Science Research Institute in January
2007 to carry out an environmental impact assessment for its expansion project. No. H.SH.H.J.
[2007] J32 Approval on Environmental Impact Report for Boluo Konka’s Double-sided and
Multilayer Board Project was issued by the Environmental Protection Bureau of Huizhou City on 8
February 2007. The approved expansion project included the installation of electroplating
equipment and processes, allowing for an increase in production capacity to 1 million square meters
for single-sided circuit boards per year and 650,000 square meters for double-sided and multilayer
circuit boards per year. Upon completion, the project underwent an environmental protection
acceptance inspection, satisfying the requirements of the environmental impact assessment approval.
The company also obtained a pollutant discharge permit in the same year and underwent a name
change to Boluo Konka Precision Technology Co., Ltd. In 2020, the company received a national
pollutant discharge permit bearing certificate number 91441322799316208F001V. Boluo Konka
25
Konka Group Co., Ltd. Interim Report 2024
Precision will produce 1.65 million square meters per year of double-sided and multilayer circuit
boards, upon the Department of Ecology and Environment of Guangdong Province's approval of the
Report on the Environmental Impact of the Circuit Boards Expansion Project with an Annual
Capacity of 1 million square meters (Y.H.SH. [2023] No. 124) in June 2023.
The regulations for industrial emissions and the particular requirements for controlling pollutant
emissions those are associated with production and operational activities.
T
Num
Distrib ot Exc
ber
Name Type of Way ution al essi
Name of of Discharge Discharge Approved
of major of of di ve
major disch concentration/inte standards total
pollut polluta disch dischar sc disc
pollutants arge nsity implemented discharge
er nts arge ge ha harg
outle
outlets rg e
ts
e
PH, total
PH 6-9; total
copper, Total
copper≤0.3mg/L;
COD, discharge
COD≤50mg/L;
ammonia of major
ammonia
nitrogen, pollutants:
nitrogen≤8mg/L;
total COD
total
nitrogen, Disch 49 19.061250
Main nitrogen≤15mg/L
total arge 7, tons/year;
Pollutio dischar ; total
phosphor of GB 21900-2008 83 ammonia ni
Xing n ge phosphorus≤0.5m
us, total statio Discharge 5 trogen
Da sources outlet g/L; total Non
cyanide, nary 1 Standard For to 3.0498
Hong of of the cyanide≤0.2mg/L e
total pollut Pollutants From ns tons/year;
Ye waste waste ; total
nickel, ion Electroplating /y total
water water nickel≤0.1mg/L;
total iron, sourc ea nitrogen
station total iron≤2mg/L;
total es r 32.9792
total
aluminum tons/year;
aluminum≤2mg/L
, total
;
petroleum phosphorus
petroleum≤2mg/L
, 0.2082
; suspended
suspende tons/year
solids≤30mg/L
d solids
Sulfuric sulfuric acid Emission Standard 2, Total
Three
acid fume≤30mg/m3; for Electroplating 98 discharge:
on the
fume, nitrogen Pollutants 6, 2,986,560,0
Disch roof of
hydrogen oxide≤200mg/m3 GB21900-2008 56 00 standard
arge plant
chloride, ; hydrogen Air Emission 0, cube/year
of 1, ten
Xing Waste formalde chloride≤30mg/m Limits Table 5, 00 (note: the
statio on the
Da gas hyde, 3; hydrogen Emission standard 0 total Non
nary 14 roof of
Hong polluta hydrogen cyanide≤0.5mg/m of Volatile st discharge is e
pollut plant 2
Ye nts cyanide, 3; Organic an not stated
ion and
nitrogen TVOC≤90mg/m3 Compounds for da in the latest
sourc one on
oxide, ; Printing Industry rd version of
es the
ammonia, benzene≤1mg/m3 DB44/815-2010; cu national
roof of
benzene, ; Guangdong Air be discharge
the
toluene+x toluene+xylene≤1 Pollutant Emission /y permit in
cantee
ylene, 5mg/m3; tin and Standard ea 2021; two
26
Konka Group Co., Ltd. Interim Report 2024
TVOC, n its DB44/27-2001 the r exhaust
tin and its compounds≤8.5m Second Level towers
compoun g/m3; Standard in the were added
ds, PM(dust)≤120mg Second Period, in 2021;
PM(dust) /m3 Emission standard calculated
for Odor Pollutants based on
(GB 14554-1993) air volume
Table 2 Standard in
environme
ntal impact
assessment
)
1. Discharge
standard of
discharge permit:
Discharge
Standard of
Electroplating
31
Water Pollutant for
1. Emission 8,
Electroplating
standard for 30
DB44/1597-2015
pollution 0
Table 1 Pearl
discharge to
River Delta
certificate: ns
Discharge COD is
copper≤0.5mg/L; /y
Standard; Water 19.2
COD≤80mg/L; ea
Pollutant tons/year;
ammonia r
PH, Discharge Limit ammonia
Disch nitrogen≤10mg/L N
copper, Main Standard of nitrogen is
Boluo arge ; total ot
Pollutio COD, dischar Guangdong 2.4
Konka of nitrogen≤20mg/L e:
n ammonia ge Province tons/year;
and statio ; total ac
sources nitrogen, outlet DB44/26-2001; 2. total Non
Boluo nary 1 phosphorus≤0.5m co
of total of the Local discharge nitrogen is e
Konka pollut g/L; 2. local rd
waste nitrogen, waste standard: BFBH 4.8
Precis ion emission in
water total water [2019] No. 58 tons/year.
ion sourc standard: g
phosphor station Document: COD, Note:
es copper≤0.5mg /L; to
us ammonia nitrogen, according
COD≤30mg/L; di
total phosphorus to the
ammonia sc
based on discharge
nitrogen≤1.5mg/ ha
"Environmental certificate
L; total rg
Quality Standards
nitrogen≤10mg/L e
for Surface Water
; total pe
GB3838-2002 "
phosphorus≤0.3m r
Category IV water
g/L mi
standard, the total
t
nitrogen discharge
reaches 50% of
discharge limit
requirement of the
corresponding
industry
Boluo Sulfuric Disch Six on sulfuric acid Emission Standard The total
Konka Waste acid arge the fume≤30mg/m3 for Electroplating discharge is Non
and gas poll fume, of 20 roof of ；nitrogen Pollutants / not stated e
Boluo utants hydrogen statio plant oxide≤200mg/m3 GB21900-2008 in the latest
Konka chloride, nary 1, ；hydrogen Air Emission version of
27
Konka Group Co., Ltd. Interim Report 2024
Precis formalde pollut fourtee chloride≤30mg/m Limits Table 5, national
ion hyde, ion n on 3；TVOCogen Guangdong Air discharge
hydrogen sourc the chl；benzenen Pollutant Emission permit in
cyanide, es roof of chlori； Standard 2020
nitrogen plant 2 methylbenzenorid DB44/27-2001 the
oxide, and e≤30； Second Level
ammonia, one in dimethylbenzene Standard in the
benzene, sewag de≤30mg/；tin Second Period,
methylbe e and its Emission standard
nzene, station compounds≤8.5m for Odor Pollutants
TVOC, g/m3；PM (GB 14554-1993)
tin and its （dust）≤≤stand Table 2 Standard,
compoun i；oil Emission standard
ds, PM fume≤2mg/m3 of cooking fume
(dust), oil (GB18483-2001)
fume
Treatment of pollutants
1. XingDa HongYe
All production equipment of Guangdong Xingda Hongye Electronics Co., Ltd. has been set up with
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. In 2022, RMB20 million was invested to increase a set of sewage treatment
facility which had been put into operation so as to ensure stable discharge of sewage up to standard.
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
28
Konka Group Co., Ltd. Interim Report 2024
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 of discharge outlets, the discharge capacity would reach 1,100 tons per day. The
aforementioned two 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 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 Gongzhuang Rive section of Dongjiang
River.
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
29
Konka Group Co., Ltd. Interim Report 2024
to enhance its emergency response capabilities for emergent environmental pollution incidents.
Furthermore, Guangdong Xingda Hongye Electronics Co., Ltd. has built an emergency pool (600m3,
underground pool of sewage treatment station) 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 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. 441322-2024-0009-M and 441322-2024-0011-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.
30
Konka Group Co., Ltd. Interim Report 2024
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.
Input in environmental governance and protection and payment of environmental protection tax
In the first half of 2024, approximately RMB16 million was input by the Company in
environmental governance and protection and a total of RMB32.85 thousand of environmental
protection tax was paid by the Company.
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
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 are disclosed in real time, or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.
2. Boluo Konka and Boluo Konka Precision
In accordance with the requirements of the environmental protection administration, Boluo Konka
and Boluo Konka Precision attach great importance to environmental monitoring management.
Thus, pursuant to the Measures for Self-Monitoring and Information Disclosure of National Key
Monitored Enterprises and requirements of the environmental impact assessment, they have
31
Konka Group Co., Ltd. Interim Report 2024
formulated the Environmental Self-Monitoring Plan and reported to the Municipal Environment
Protection Bureau for approval and record. Meanwhile, the PH and flow rate of wastewater
discharge are automatically monitored in real time, and the pollutants such as COD, ammonia
nitrogen and total phosphorus are automatically monitored online every two hours. Furthermore,
they entrust 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 entrust the qualified third-party monitoring unit to carry out the "three
wastes" project monitoring, in line with the newly released national pollutant discharge permit and
the corporate self-monitoring plans that have been filed. 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 are disclosed in real time, or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.
No administrative punishments were received in the Reporting Period due to environmental issues.
Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co., Ltd. for
the first half of 2024 was approximately RMB11 million, mainly used for the depreciation in
Environmental governance equipment and facilities, treatment of sewage, waste gas and solid waste,
as well as the maintenance and upgrading of environmental protection equipment.
2. Boluo Konka and Boluo Konka Precision
From January to June 2024, Boluo Konka and Boluo Precision invested a total of approximately
RMB5 million for environmental protection, which was mainly used for the daily treatment of
waste water and waste gas and maintenance of facilities. Meanwhile, Boluo Konka and Boluo
Precision separately disclosed environmental information, such as information on the industrial
sewage, waste gas, noise and solid waste, on environmental protection platforms, such as the
Guangdong Information Platform for Environmental Regulation of Solid Waste, National
Information Platform for Emission Permit Management-for Enterprises, Guangdong IoT Platform
for Automatic Monitoring of Pollution Sources in the Whole Process-for Enterprises, Platform for
Environmental Statistics Systems, and System for Automatic Monitoring of Key Pollutant
Discharge Entities and the Basic Database (for Enterprises).
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
32
Konka Group Co., Ltd. Interim Report 2024
□ 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.
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
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.
33
Konka Group Co., Ltd. Interim Report 2024
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
34
Konka Group Co., Ltd. Interim Report 2024
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
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.
35
Konka Group Co., Ltd. Interim Report 2024
Part VI Significant Events
I 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.
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 Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□ Yes √ No
The interim financial statements of the Company have not been audited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable √ Not applicable
VII Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits and arbitrations:
√ Applicable □ Not applicable
Inde
x to
Involved
Execution Disclo discl
amount Provisio Decisions and
General information Progress of sure osed
(RMB’0,0 n effects
decisions date infor
00)
mati
on
Due to a dispute arising from an 16,681.2 No The case is The Company The case 24 http:/
36
Konka Group Co., Ltd. Interim Report 2024
entrustment contract, Shenzhen in the has won the is in the Nove /ww
Konka Pengrun Technology & enforcement lawsuit, which enforceme mber w.cni
Industry Co., Ltd., a subsidiary of the phase. is now in the nt phase. 2022 nfo.c
Company, instituted legal enforcement om.c
proceedings against Guang'an phase. n/ne
Ouqishi Electronic Technology Co., w/in
Ltd., Guan Hongshao, Huaying dex
Gaokede Electronic Technology Co.,
Ltd., Huaying Gaokelong Electronic
Technology Co., Ltd., Guizhou
Jiaguida Technology Co., Ltd.,
Sichuan Hongrongyuan Property Co.,
Ltd., Du Xinyu, Lin Bolong, and
Wang Shisheng, seeking an order
that the defendants should pay the
purchase price of goods and
liquidated damages.
The Company
has won the
lawsuit. The
court ruled that
Due to a dispute arising from a the defendant
security contract, Anhui Konka should repay
Electronic Co., Ltd., a subsidiary of the principal of
the Company, instituted legal USD2,364,400, 24
The case
proceedings against Maoxinyuan The case has default interest, Nove
2,128.62 No has been
Electronics (Shenzhen) Co., Ltd., been closed. etc. mber
closed.
seeking an order that the defendant RMB17,538,70 2022
should assume its joint and several 0 has been
liability to the plaintiff under the recovered
guarantee. through
enforcement
measures. The
case has been
closed.
Due to a dispute arising from an
equity transfer agreement, the
Company instituted legal proceedings
The Company
against Beijing Langruihaoteng
The case is has won the The case
Technology Development Co., Ltd.,
in the lawsuit, which is in the 1 June
Beijing Beida Jade Bird Security 4,540.76 No
enforcement is now in the enforceme 2023
System Engineering Technical Co.,
phase. enforcement nt phase.
Ltd., and Beijing Jingruihaoteng
phase.
Technology Development Co., Ltd.,
requesting the final payment for the
equity transfer.
The Company
Due to a dispute over capital
has won the
increase, the Company's subsidiary,
lawsuit, and
Shenzhen Konka Investment Holding
RMB132,235,4
Co., Ltd., applied for arbitration
00 has been The case
toward the Shenzhen Court of The case has 1 June
9,790.53 No recovered has been
International Arbitration, requesting been closed. 2021
through closed.
the respondents, namely Elion
enforcement
Resources Group Co., Ltd. and Elion
measures. The
Ecological Co., Ltd., to perform the
case has been
repurchase obligation.
closed.
37
Konka Group Co., Ltd. Interim Report 2024
The
Company
Due to a contract dispute, Shenzhen
has won the
Oriental Venture Capital Investment The trial 24
lawsuit in The second-
Co., Ltd. initiated legal proceedings of the Nove
75,214.75 No the first instance trial is
against the Company, requesting an case is mber
instance. The ongoing.
order that the repurchase amount and ongoing. 2022
second-
liquidated damages be paid.
instance trial
is ongoing.
Due to a dispute over bankruptcy,
Xinxiang Jia Hui Dakeluo Crafts
Products Co., Ltd. initiated legal
proceedings against the Company's
The trial
subsidiary Henan Frestec Electrical The second- The second-
of the 1 June
Appliances Co., Ltd., requesting a 4,576.7 No instance trial instance trial is
case is 2023
confirmation that the end-of-period is ongoing. ongoing.
ongoing.
VAT credit that had been refunded
by the tax authority to the defendant
should be a part of other property
available for distribution.
Due to a dispute arising from an
international sale of goods contract, The
Anhui Kangzhi Trade Co., Ltd., a Company
The case 24
subsidiary of the Company, initiated has won the The Company
is in the Nove
legal proceedings against B&L 2,845.19 No lawsuit, and has won the
enforceme mber
TECHNOLOGY CO., LIMITED, the ruling lawsuit.
nt phase. 2022
seeking an order that the respondent has taken
should pay the purchase price of effect.
goods and liquidated damages.
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), the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89), the Announcement on Accumulative Lawsuits and
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) 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 a consequence of the non-payment of a bill upon its expiry, Kongka Factoring has instituted legal proceedings before the court. The
lawsuit seeks an injunctive order mandating Tahe Group Co., Ltd., Fuzhou Taijia Industrial Co., Ltd., and Xiamen Lianchuang Microelectronics Co.,
Ltd. to remit payment for the bill amount, along with the corresponding interest, to Kongka Factoring.; 5. 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; 6. 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; 7.
Due to contract dispute, the Company’s subsidiary Shenzhen Nianhua applied for arbitration to request the respondent Fang Xianglong and Jiang Yan
38
Konka Group Co., Ltd. Interim Report 2024
to make compensation for corresponding annual profit and fund possession cost; 8. 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; 9. As a result of a dispute stemming from an international sale of goods contract, Anhui Konka Electronic Co., Ltd., a
subsidiary of the Company, has initiated legal proceedings against Maoxinyuan Electronics (Hong Kong) Co., Ltd. The lawsuit seeks an injunctive
order compelling the respondent to pay the applicant the overdue payment interest losses; 10. As a result of the repurchase dispute, the Company sued
Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo Zongwu and Shenzhen Yaode Technology Co., Ltd. for an order to pay the share repurchase amount
together with interests. 11. Because of a dispute over a contract, the Company filed a lawsuit with Zhengzou Intermediate People's Court, requiring
Henan Radio and Television Network Co., Ltd. to take delivery of goods, make payment for goods, and pay interest and liquidated damages
according to the contract. 12. As a result of contractual disputes, Shenzhen Konka Unifortune Technology Co., Ltd., a subsidiary of the Company, has
initiated legal proceedings against Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology (Shenzhen) Co., Ltd., Shenzhen Hongyao
Dingsheng Investment Management Limited Partnership, Shenzhen Xiangrui Yingtong Investment Management Limited Partnership, Luo Jingxia,
Luo Zongwu, Luo Zongyin, Luo Zaotong, and Luo Saiyin, seeking restitution for goods received and claiming damages for breach of contract. 13. On
account of the infringement of the Company’s trademark rights and the practice of unfair competition, a lawsuit has been instituted by the Company
against Xinshang Electronics Co., Ltd., located in Fu’an City, as well as Fujian Zhaoguan Industry and Trade Co., Ltd., Jinhua Kangjia Medical
Equipment Factory, and Wang Jun, seeking an injunctive order to halt the infringement, and claiming compensation for any incurred losses. 14. Due
to the dispute over the entrustment contract, Anhui Kangjia Electronics Co., Ltd., a subsidiary of the company, sued Shenzhen Meisen Plastic
Electronics Co., Ltd., Shantou Meisen Technology Co., Ltd., Lin Yuanqin, Huang Ruirong and Jiangsu Huadong Hardware City Co., Ltd., asking for
an order to terminate the contract, return the payment for goods and pay liquidated damages, and give priority to the mortgage property. 15. Due to
the contract dispute, the Company's subsidiary Anhui Kangjia Electronics Co., Ltd. sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisen
Source Plastic Electronics Co., Ltd., Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware City Co., Ltd., requiring the order to terminate the
contract, the defendant to return the payment and pay liquidated damages, the mortgage property priority compensation. 16. Due to the dispute over
the loan contract, the Company sued Yantai Kangyue Investment Co., Ltd., requiring the defendant to repay the loan and interest. 17. Due to the share
buyback dispute, the Company's subsidiary Shenzhen Nianhua Enterprise Management Co., Ltd. sued Fang Xianglong and Jiang Yan to buy back the
share and pay the buyback price. 18. Due to the dispute over the sales contract, Sichuan Kangjia Intelligent Terminal Technology Co., Ltd., a
subsidiary of the Company, sued Shenzhen Junxing Communication Technology Co., Ltd., Shenzhen Hongxing Fengda Industrial Development Co.,
Ltd., Shenzhen Junxing Junye Electronics Co., Ltd., Liuyang Huaichuan Heyuan Villa Co., Ltd., Zeng Jiankai and Zhong Yuhua, demanding payment
of goods and liquidated damages. The case is being executed. 19. Due to a contract dispute, the Company's subsidiary Konka Mobility Co., Limited
initiated legal proceedings against Genstar Hong Kong Limited, Zeng Jiankai and Zhong Yuhua, demanding payment of price of goods and liquidated
damages; 20. due to a dispute arising from an entrustment contract, Henan Frestec Refrigeration Appliance Co., Ltd., a subsidiary of the Company,
initiated legal proceedings against Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Shantou Meisen Technology Co., Ltd., Lin Yuanqin, Huang
Ruirong and Chuangfu Commerce & Trade Plaza Real Estate Development (Huizhou) Co., Ltd., requesting an order that the contract be rescinded,
the payment for goods be refunded, the liquidated damages be paid and the debts be preferentially paid with the mortgaged property; 21. due to a
dispute arising from an entrustment contract, Hainan Konka Material Technology Co., Ltd., a subsidiary of the Company, initiated legal proceedings
against Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd. and Jiangsu Huadong Hardware City Co., Ltd.,
requesting an order that the contract be rescinded, the payment for goods be refunded, the liquidated damages be paid and the debts be preferentially
paid with the mortgaged property; 22. due to a dispute arising from a sales contract, Dongguan Konka Electronic Co., Ltd., a subsidiary of the
Company, initiated legal proceedings in the Nanshan Primary People's Court, Shenzhen, requesting an order that Dongguan High Energy 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 pay the overdue amount payable for goods and the corresponding liquidated damages.
The following cases have been disclosed in current announcements and periodic reports and are currently in trial. 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), the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89), the Announcement on Accumulative Lawsuits and
39
Konka Group Co., Ltd. Interim Report 2024
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) 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. 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. 3. As the notes were not repaid at maturity, the Company filed a lawsuit with the court,
requesting that Wuhan Jialian Agricultural Science and Technology Development Co., Ltd. be ordered to honour the notes as well as the
corresponding interest to the Company. 4. As a result of a dispute arising from an international sale of goods contract, Jiaxin Technology Co., Ltd., a
subsidiary of the Company, has initiated legal proceedings against Dingxin Electronic Technology (Hong Kong) Co., Ltd., Chen Wenhuan, and Chen
Baohong, seeking an order for the defendants to pay for the goods and claiming damages for breach of contract; 5. Due to a dispute arising from an
installment purchase contract, Wu Rong has instituted legal proceedings against the Company and its subsidiary, Shenzhen Konka Electronics
Technology Co., Ltd., seeking an order for the payment of the purchase price and overdue payment interest to the plaintiff. 6. Due to a contractual
dispute, Shenzhen Konka Unifortune Technology Co., Ltd., a subsidiary of the Company, filed a lawsuit against Shenzhen Junxing Communication
Technology Co., Ltd., Gumei Electronics (Hongkong) Technology Limited, Shenzhen Hongxingfengda Industrial Development Co., Ltd., Shenzhen
Junxing Junye Electronics Co., Ltd., Zeng Jiankai, Zhang Zhenyu, Herewin Technology Group (HK) Co., Ltd., Zhang Lixia, Anhui Baolin Industrial
Co., Ltd., Zeng Qingpeng, and Zhong Yuhua to return the payment for goods and pay the corresponding liquidated damages. 7. Due to a dispute over
the cancellation of creditor's rights, the Company’s subsidiary Anhui Konka Electronic Co., Ltd. filed a lawsuit against Wu Rong and Makena
Electronic (Shenzhen) Co., Ltd., seeking for the cancellation of the Agreement on the Transfer of Creditor's Rights and the relevant supplemental
agreement previously signed by the defendants. 8. Due to a purchase and sales contract, Sichuan Shuwu Guangrun Logistics Co., Ltd. filed a lawsuit
against the Company’s subsidiary Dongguan Konka Electronic Co., Ltd., requesting the latter to make payment for goods and pay liquidated damages.
9. Due to a purchase and sales contract of international goods, Micro Crystal Transfer Group Ltd. filed a lawsuit against the Company’s subsidiary
Chongqing Konka Optoelectronic Technology Research Institute Co., Ltd., requesting the latter to make payment for goods and pay liquidated
damages. 10. Due to a contractual dispute, the Company filed a lawsuit against Zhu Xinming, Leng Sumin, Gongqingcheng Jinzhuanrong Investment
Management Partnership (Limited Partnership), and Gongqingcheng Xinrui Investment Management Partnership (Limited Partnership), requesting
them to pay the performance compensation. 11. As 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”) and Jiangxi Zhongyi Decoration Materials Co.,
Ltd. (hereinafter referred to as the “Jiangxi Zhongyi”) failed to repay a loan and corresponding interest to China Great Wall Asset Management Co.,
Ltd. Jiangxi Branch (hereinafter referred to as “Great Wall Asset Jiangxi Branch”), Great Wall Asset Jiangxi Branch initiated legal proceedings in a
court, requesting a ruling that Jiangxi Xinxin, Jiangxi Shanshi and Jiangxi Zhongyi repay loans totaling RMB300 million, liquidated damages totaling
RMB108,000, and interest of RMB13.65 million, and requesting 9 guarantors, including Jiangxi Konka, Xinfeng Microcrystalline and Nanocrystal, to
assume their joint and several liability under the guarantee.
Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable √ Not applicable
40
Konka Group Co., Ltd. Interim Report 2024
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
Obtain
As %
able
Relati of total Approv Index
Over market
onshi Type Pricin Tran Total value ed Method to
the price Disclos
Related p with of Specific g sacti value of all transact of disclos
approv for ure
party the transa transaction princi on (RMB’ same- ion line settlem ed
ed line same- date
Comp ction ple price 0,000) type (RMB’ ent inform
or not type
any transact 0,000) ation
transact
ions
ions
Purch http://w
OCT
Under ase of
Enterpri ww.cni
the com Property
ses Co., Negot Mar 2 April nfo.co
same modit management, 4,293.7
Ltd and iated ket 0.90% 15,000 Not Cash N/A
actual ies utilities, 7 2024 m.cn/n
its price price
contro and office leases
subsidia ew/ind
ller servic
ries
es ex
Sale of TVs, http://w
OCT
Under Sales intelligent
Enterpri ww.cni
the of terminals, etc.
ses Co., Negot Mar 2 April nfo.co
same goods and collection 3,705.5
Ltd and iated ket 0.73% 10,000 Not Cash N/A
actual and of installation 8 2024 m.cn/n
its price price
contro servic charges for
subsidia ew/ind
ller es smart TV
ries
terminals ex
7,999.3
Total -- -- 5 -- 25,000 -- -- -- -- --
Large-amount sales return in detail N/A
The Company has published the Forecasting Public Notice on Routine Related-party Transaction for
Give the actual situation in the Reporting Y2024 on Securities Times, Shanghai Securities News, and China Securities Journal as well as the
Period (if any) where an estimate had been
Internet website designated by CSRC http://http://www.cninfo.com.cn/new/index on 2 April 2024. In the
made for the total value of continuing related-
party transactions by type to occur in the Reporting Period, the basis for pricing, transaction price, transaction amount and settlement methods of
Reporting Period raw materials purchased by the Company were basically in accordance with the forecast. The total amount
incurred was RMB79.9935 million.
Reason for any significant difference between
the transaction price and the market reference N/A
price (if applicable)
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity
Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party 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
No credits receivable with related parties
Liabilities payable to related parties:
Related Beginning Increased in Recovered in Interest in Ending
Related Forming Interest
relation balance the the the balance
party reason rate
ship (RMB’0,000 Reporting Reporting Reporting (RMB’0,000
41
Konka Group Co., Ltd. Interim Report 2024
) Period Period Period )
(RMB’0,000 (RMB’0,000 (RMB’0,0
) ) 00)
The 81,091.00 0 0 3.45% 1,414.36 81,091.00
OCT Control
Company
Enterprise ling 50,000.00 0 0 3.45% 872.08 50,000.00
applies
s Co., shareh
entrusted
Ltd. older 70,000.00 0 0 3.45% 1,220.92 70,000.00
loan to it
Effects of liabilities with related
The Company applies entrusted loan from OCT Enterprises Co., Ltd. which meets the
parties on the Company’s operating
needs of the company's existing business development and reduces the financing cost.
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
Counter-security provided by the Company to apply for banks' credit facilities and the payment of
the security fee: At the 23rd meeting held by the 10th Board of Directors on 1 March 2024 and
the second Extraordinary general meeting of shareholders in 2024, which was held on 18 March
2024, the Company deliberated on and approved the Proposal on the Company's Provision of
Counter-security to Apply for Banks' Credit Facilities and Payment of Security Fees. To reduce
financing costs and optimize the debt structure, the Company plans to request Overseas Chinese
Town Holdings Company to provide an unconditional and irrevocable joint and several guarantee
for the full amount of the credit facilities not exceeding RMB1.6 billion which the Company
plans to apply toward banks. Accordingly, the Company plans to provide counter-security with
the same amount and term to Overseas Chinese Town Holdings Company; the amount of the
counter-security is expected not to exceed RMB1.6 billion, and the secured lines of credit are
expected to stay valid for no more than three years. At the same time, the Company plans to pay
Overseas Chinese Town Holdings Company security fees for the secured amount actually used,
and the security fees are expected not to exceed 0.5% of the secured amount actually used, that is,
if the secured amount is RMB1.6 billion, the total amount of security fees paid by the Company
will not exceed RMB8 million, subject to the specific contract terms.
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on the Company's Provision of Counter-
security to Apply for Banks' Credit Facilities and Payment 2 March 2024 http://www.cninfo.com.cn/new/index
of Security Fees and Related Party Transactions
42
Konka Group Co., Ltd. Interim Report 2024
XII 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 total rental revenue of Konka R&D Building, Konka Guangming Technology Centre and other
properties was approximately RMB54.60 million 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)
Disclosure
Havin Guarante
date of the Counter
Actual Collater Term of g e for a
guarantee Line of Guarante Type of guarante
Obligor occurrence al (if guarante expire related
line guarantee e amount guarantee e (if
date any) e d or party or
announceme any)
not not
nt
30
September 1,624 Joint-liability No Not 2 years Not Not
2022
23 1 year
November 2,748 Joint-liability No Not and a Not Not
2022 half
22 May
1,499 Joint-liability No Not 4 years Not Not
2023
5 July 2023 4,997 Joint-liability No Not 1 year Not Not
19 July
2,498 Joint-liability No Not 1 year Not Not
28 April 2023
Econ Technology 50,000 28 August
2022 999 Joint-liability No Not 1 year Not Not
2023
29
December 1,374 Joint-liability No Not 1 year Not Not
2023
28
December 2,498 Joint-liability No Not 1 year Not Not
2023
6 February
125 Joint-liability No Not 1 year Not Not
2024
1 March
4,489 Joint-liability No Not 1 year Not Not
2024
43
Konka Group Co., Ltd. Interim Report 2024
30 April
500 Joint-liability No Not 1 year Not Not
2024
Jiangxi Xinxin
12
Jian’an
10,000 December 10,000 Joint-liability No Not Not Not
Engineering Co., 2016
Ltd.
Jiangxi Zhongyi
12
Decoration
10,000 December 10,000 Joint-liability No Not Not Not
Materials Co., 2016
Ltd.
Jiangxi Shanshi
12
Technological
10,000 December 10,000 Joint-liability No Not Not Not
Development Co., 2016
Ltd.
8
September 60,000 Joint-liability No Not 3 years Not Yes
2022
18 October
60,000 Joint-liability No Not 3 years Not Yes
2022
22
30 March September 50,000 Joint-liability No Not 3 years Not Yes
2022, 25 2023
February 13
OCT Group 2023, 10 710,000 December 50,000 Joint-liability No Not 3 years Not Yes
August 2023 2023
and 1 March 29 January
150,000 Joint-liability No Not 3 years Not Yes
2024 2024
18 March
80,000 Joint-liability No Not 3 years Not Yes
2024
26 March
50,000 Joint-liability No Not 3 years Not Yes
2024
25 June
60,000 Joint-liability No Not 2 years Not Yes
2024
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
160,000 345,114
Period (A1) Reporting Period (A2)
Total approved line for such guarantees at the end of the Total actual balance of such guarantees at the end of
1,237,370 613,351
Reporting Period (A3) the Reporting Period (A4)
Guarantees provided between the Company and subsidiaries
Disclosure
Havin Guarante
date of the
Line of Actual Type of Collater Term of g e for a
guarantee Guarante Counter guarantee (if
Obligor guarante occurrenc guarante al (if guarante expire related
line e amount any)
e e date e any) e d or party or
announceme
not not
nt
19
Joint-
October 10,000 No Not 1 year Not Not
liability
2023
20 1 year
Joint-
Anhui 25 February Novembe 3,000 No Not and a Not Not
55,000 liability
Tongchuang 2023 r 2023 half
20 June Joint-
5,000 No Not 1 year Not Not
2024 liability
20 May Joint-
5,000 No Not 1 year Not Not
2024 liability
15
Joint-
January 4,000 No Not 1 year Not Not
liability
28 April 2024
25
2022 and 25 Joint-
Boluo Precision 12,500 August 4,500 No Not 3 years Not Not
February liability
2023
2023 29
Joint-
January 2,000 No Not 1 year Not Not
liability
2024
2 April Joint-
100,000 8,500 No Not 1 year Not Not
Electronics 25 February 2024 liability
44
Konka Group Co., Ltd. Interim Report 2024
Technology 2023 26
Joint-
Septembe 50,000 No Not 1 year Not Not
liability
r 2023
24 March
2021 and 25 23 June Joint-
Dongguan Konka 90,000 80,000 No Not 10 years Not Not
February 2021 liability
2023
Other shareholder of
Jiangxi Konka
15
31 October Joint- provides a counter
Jiangxi Konka 6,000 August 6,000 No 1 year Not Not
2018 liability guarantee for the
2023
Company for 49% of
the guarantee line
24 March
2021 and 25 23 May Joint-
Sichuan Konka 20,000 4,000 No No 3 years Not Not
February 2023 liability
2023
1 year
2 March Joint-
Ningbo Khr 6,000 No No and a Not Not
28 April 2023 liability
Electric 12,000 half
2022
Appliance 13 July Joint-
6,000 No No 1 year Not Not
2023 liability
Other shareholder of
Yibin Kangrun
13
24 October Joint- provides a counter
Yibin Kangrun 10,000 Novembe 10,000 No 4 years Not Not
2020 liability guarantee for the
r 2020
Company for 33% of
the guarantee line
Telecommunicati 28 April 23 July Joint-
20,000 7,500 No No 1 year Not Not
on Technology 2022 2023 liability
10
Joint-
August 10,216 No 10 years Not Not
liability
2021
29
Joint-
October 7,000 No 5 years Not Not
liability
2021
24
Joint-
October 7,000 No Other shareholder of 4 years Not Not
liability
2022 Anhui Konka
28 April 19 provides a counter
Anhui Konka 110,000 Joint-
2022 Septembe 7,000 No guarantee for the 2 years Not Not
liability
r 2022 Company for 22% of
25 June Joint- the guarantee line
5,000 No 5 years Not Not
2023 liability
31
Joint-
August 5,500 No 1 year Not Not
liability
2023
22
Joint-
Septembe 18,000 No 1 year Not Not
liability
r 2023
22
Joint-
Decembe 5,000 No 1 year Not Not
liability
24 March r 2023
Konka Circuit 50,000 No
2021 3 years
19 July Joint-
10,000 No and a Not Not
2023 liability
half
28 April
10
Mobile 2022 and 25 Joint-
15,000 Novembe 7,000 No No 1 year Not Not
Interconnection February liability
r 2023
2023
12 July Joint-
8,278 No No 5 years Not Not
Konka Xinyun 24 March 2021 liability
30,000
Semiconductor 2021 26 May Joint-
6,000 No No 2 years Not Not
2024 liability
45
Konka Group Co., Ltd. Interim Report 2024
Yibin Konka 24 March 27 March Joint-
980 980 No No 1 year Not Not
Intelligent 2021 2024 liability
13
Chongqing 24 March Joint-
55,600 Decembe 38,000 No No 15 years Not Not
Konka 2021 liability
r 2022
30
Frestec Smart 28 April Joint-
12,240 January 10,200 No No 3 years Not Not
Home 2022 liability
2024
19
Konka Soft 28 April Joint-
19,000 Decembe 975 No No 4 years Not Not
Electronic 2022 liability
r 2022
28 April
24
Suining Konka 2022 and 25 Joint-
27,500 January 19,010 No No 14 years Not Not
Hongye February liability
2024
2023
Xi'an Kanghong
Technology
25 February 26 May Joint-
Industry 30,000 30,000 No No 10 years Not Not
2023 2023 liability
Development Co.,
Ltd.
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
0 60,690
Period (B1) Reporting Period (B2)
Total approved line for such guarantees at the end of the Total actual balance of such guarantees at the end of
964,855 406,659
Reporting Period (B3) the Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure
Havin Guarante
date of the Counter
Actual Collater Term of g e for a
guarantee Line of Guarante Type of guarante
Obligor occurrence al (if guarante expire related
line guarantee e amount guarantee e (if
date any) e d or party or
announceme any)
not not
nt
No
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
0 0
Period (C1) Reporting Period (C2)
Total approved line for such guarantees at the end of the Total actual balance of such guarantees at the end of
0 0
Reporting Period (C3) 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 Reporting
160,000 405,804
(A1+B1+C1) Period (A2+B2+C2)
Total approved guarantee line at the end of the Reporting Total actual guarantee balance at the end of the
2,202,225 1,020,010
Period (A3+B3+C3) Reporting Period (A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 224.02%
Of which:
46
Konka Group Co., Ltd. Interim Report 2024
Balance of guarantees provided for shareholders, actual controller and their related parties (D) 560,000
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 1,020,010
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 792,345
Total of the three amounts above (D+E+F) 1,020,010
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) No
Provision of external guarantees in breach of the prescribed procedures (if any) No
Compound guarantees:
None
3. 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
Trust financial
Self-owned 10,000 10,000 0 0
products
Total 10,000 10,000 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
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
√ Applicable □ Not applicable
(I) Initiation and establishment of funds: The total scale of the Oriental-Konka Industry M&A Fund
was 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
Investment Holding Co., Ltd. has contributed RMB487,344,000. The fund invested in Jiangxi
Yahua Electronic Materials Co., Ltd., Potron Technology Co., Ltd., etc.
The total scale of the Kunshan-CITIC-Konka Emerging Industry Development Investment Fund
47
Konka Group Co., Ltd. Interim Report 2024
was RMB1,006,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500
million, accounting for 49.70% of the total units. By the date of this report, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB195.21 million. The fund invested in
UNIONTECH, Hercules Microsystems (HME), etc.
The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was 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 RMB200,000,000. The fund invested in Feidi Technology (Shenzhen) Co., Ltd.,
Allystar Technology (Shenzhen) Co., Ltd., etc.
The total scale of Yancheng Kangyan Industry Investment Fun was 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 RMB217.36 million. The fund invested in
Anhui Zhongdian Xingfa and Xinlong Co., Ltd., Chongqing E2info Technology Co., Ltd., etc.
The total scale of Yibin Kanghui Electronic Information Industry Equity Investment Fund was
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.
has contributed RMB104 million. The fund invested in Chongqing E2info Technology Co., Ltd., etc.
The total scale of Chongqing Kangxin Equity Investment Fund was RMB2 billion. Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management
Co., Ltd. contributed RMB1 billion, accounting for 50% 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 RMB148,248,300. The fund invested in Shanghai VEIGLO
Information System Co., Ltd., Jiangxi Taide Wisdom Technology Co., Ltd., etc.
(II) Corporate bonds issue: As for the non-public offering of corporate bonds of RMB2.3 billion,
RMB1.5 billion and RMB0.8 billion of corporate bonds have been issued on 29 January 2024 and
18 March 2024, respectively.
(III) Disclosure index of significant information
Announce Website
Date Title Page on newspaper
ment No. link
Announcement on Results of Non-public Offering of Corporate Bonds (Tranche I) Securities Daily B53, Shanghai Securities News http://www
2024-01 30 January 2024
in 2024 36, etc. .cninfo.co
Securities Daily B76, Shanghai Securities News m.cn/new/i
2024-02 31 January 2024 2023 Annual Result Forecast ndex
10, etc.
Securities Daily B128, Shanghai Securities News
2024-03 7 February 2024 Announcement on Resolutions of the 22nd Meeting of the 10th Board of Directors
74, etc.
48
Konka Group Co., Ltd. Interim Report 2024
Announcement on Resolutions of the 10th Meeting of the 10th Board of Securities Daily B128, Shanghai Securities News
2024-04 7 February 2024
Supervisors 74, etc.
Announcement on Revision of the Company's Articles of Association and Other Securities Daily B127, Shanghai Securities News
2024-05 7 February 2024
Policies 73, etc.
Announcement on Provision of Financial Assistance for Sichuan Hongxinchen Securities Daily B128, Shanghai Securities News
2024-06 7 February 2024
Real Estate Development Co., Ltd. in Proportion to Shareholdings 74, etc.
Announcement on Provision of Financial Assistance for Yantai Kangyun Securities Daily B45, Shanghai Securities News
2024-07 7 February 2024
Industrial Development Co., Ltd. in Proportion to Shareholdings 74, etc.
Notice on Holding the First Extraordinary General Meeting of Shareholders in Securities Daily B128, Shanghai Securities News
2024-08 7 February 2024
2024 73, etc.
Announcement on Resolutions of the First Extraordinary General Meeting of Securities Daily B3, Shanghai Securities News
2024-09 27 February 2024
Shareholders in 2024 73, etc.
Announcement on the Company's Provision of Counter-security to Apply for
Securities Daily B49, Shanghai Securities News
2024-10 2 March 2024 Banks' Credit Facilities and Payment of Security Fees and Related Party
20, etc.
Transactions
Securities Daily B49, Shanghai Securities News
2024-11 2 March 2024 Announcement on Resolutions of the 23th Meeting of the 10th Board of Directors
20, etc.
Notice on Holding the Second Extraordinary General Meeting of Shareholders in Securities Daily B49, Shanghai Securities News
2024-12 2 March 2024
2024 20, etc.
Reminder Announcement on Holding the Second Extraordinary General Meeting Securities Daily B19, Shanghai Securities News
2024-13 15 March 2024
of Shareholders in 2024 28, etc.
Securities Daily B19, Shanghai Securities News
2024-14 15 March 2024 Announcement on the Progress of Provision of Security for External Parties
28, etc.
Announcement on Resolutions of the Second Extraordinary General Meeting of Securities Daily B80, Shanghai Securities News
2024-15 19 March 2024
Shareholders in 2024 20, etc.
Announcement on Results of Non-public Offering of Corporate Bonds (Tranche Securities Daily B80, Shanghai Securities News
2024-16 19 March 2024
II) in 2024 20, etc.
Securities Daily B14, Shanghai Securities News
2024-17 22 March 2024 Announcement on the Progress of Provision of Security for External Parties
28, etc.
Securities Daily B192, Shanghai Securities News
2024-18 2 April 2024 2023 Annual Report
169, etc.
Securities Daily B192, Shanghai Securities News
2024-19 2 April 2024 Summary of 2023 Annual Report
169, etc.
Securities Daily B192, Shanghai Securities News
2024-20 2 April 2024 Announcement on Resolutions of the 24th Meeting of the 10th Board of Directors
169, etc.
Announcement on Resolutions of the 11th Meeting of the 10th Board of Securities Daily B192, Shanghai Securities News
2024-21 2 April 2024
Supervisors 169, etc.
Securities Daily B192, Shanghai Securities News
2024-22 2 April 2024 Announcement on Expected Routine Related Party Transactions in 2024
169, etc.
Securities Daily B192, Shanghai Securities News
2024-23 2 April 2024 Announcement on Expected Routine Related Party Transactions in 2024
169, etc.
Securities Daily B192, Shanghai Securities News
2024-24 2 April 2024 Announcement on Provisioning for Asset Impairment in 2023
169, etc.
Securities Daily B46, Shanghai Securities News
2024-25 8 April 2024 Announcement on Holding 2023 Online Meeting for Result Release
10, etc.
Securities Daily B244, Shanghai Securities News
2024-26 29 April 2024 2024 Q1 Report
60, etc.
Announcement on Reply to the Inquiry Letter on 2023 Annual Report from the Securities Daily B129-B131, Shanghai Securities
2024-27 11 May 2024
Shenzhen Stock Exchange News 137-139, etc.
Securities Daily B2, Shanghai Securities News
2024-28 21 May 2024 Announcement on the Progress of Provision of Security for External Parties
81, etc.
Securities Daily B36, Shanghai Securities News
2024-29 1 June 2024 Announcement on Resolutions of the 27th Meeting of the 10th Board of Directors
17, etc.
Securities Daily B36, Shanghai Securities News
2024-30 1 June 2024 Notice on Holding the 2023 Annual General Meeting of Shareholders
17, etc.
Announcement on Resolutions of the 2023 Annual General Meeting of Securities Daily B56, Shanghai Securities News
2024-31 25 June 2024
Shareholders 41, etc.
Announcement on Progress of Guarantee Provision for Wholly-owned Securities Daily B15, Shanghai Securities News
2024-32 26 June 2024
Subsidiaries 76, etc.
XIV Significant Events of Subsidiaries
□ Applicable √ Not applicable
49
Konka Group Co., Ltd. Interim Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Shares as
as dividen
dividen d
Percentag New d convert Percenta
Shares Other Subtotal Shares
e (%) issues convert ed ge (%)
ed from
from capital
profit reserve
s
1. Restricted shares 0 0.00% 0 0.00%
2. Unrestricted shares 2,407,945,408 100.00% 2,407,945,408 100.00%
2.1 RMB-denominated
1,596,593,800 66.31% 1,596,593,800 66.31%
ordinary shares
2.2 Domestically listed
811,351,608 33.69% 811,351,608 33.69%
foreign shares
3. Total shares 2,407,945,408 100.00% 2,407,945,408 100.00%
Reasons for the share changes:
□ Applicable √ Not applicable
Approval of the share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ 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
□ Applicable √ Not applicable
50
Konka Group Co., Ltd. Interim Report 2024
III Shareholders and Their Holdings as at the Period-End
Unit: share
Number of ordinary shareholders 84,245 Number of preferred shareholders with resumed voting rights (if any) 0
5% or greater ordinary shareholders or top 10 ordinary shareholders (exclusive of shares lent in refinancing)
Shares in
Restric
pledge,
Shareh Increase/decr ted
Total ordinary Unrestricted marked or
Nature of olding ease in the ordinar
Name of shareholder shares held at ordinary frozen
shareholder percent Reporting y
the period-end shares held Sh
age Period shares Stat
are
held us
s
OVERSEAS CHINESE TOWN State-owned
21.75% 523,746,932 0 0 523,746,932
HOLDINGS COMPANY legal person
CITIC SECURITIES BROKERAGE Foreign legal
7.48% 180,001,110 0 0 180,001,110
(HONG KONG) CO., LTD. person
GUOYUAN SECURITIES Foreign legal
2.47% 59,456,543 -250,300 0 59,456,543
BROKER (HK) CO., LTD. person
Foreign legal
HOLY TIME GROUP LIMITED 2.38% 57,289,100 0 0 57,289,100
person
Foreign legal
GAOLING FUND ,L.P. 1.21% 29,037,555 -16,329,128 0 29,037,555
person
Domestic
WANG JINGFENG natural 1.06% 25,625,800 -44,374,200 0 25,625,800
person
Domestic
ZHANG SUFEN natural 1.06% 25,500,000 10,400,000 0 25,500,000
person
Foreign
NAM NGAI natural 0.83% 20,000,000 -3,000,000 0 20,000,000
person
CHINA MERCHANTS State-owned
0.82% 19,837,520 -28,000 0 19,837,520
SECURITIES (HK) LIMITED legal person
BOCOM INTERNATIONAL Foreign legal
0.78% 18,896,037 0 0 18,896,037
SECURITIES LIMITED person
Strategic investor or general legal person becoming a top-10 ordinary shareholder due to rights issue (if any) N/A
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
Related or acting-in-concert parties 18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage
among the shareholders above (Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited. 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 entrusted with voting rights or
N/A
waiving voting rights
Special account for share repurchases (if any) among the top 10 shareholders (see note 11) None
Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and locked up shares of senior management)
Name of shareholder Unrestricted ordinary Shares by type
51
Konka Group Co., Ltd. Interim Report 2024
shares held at the
Type Shares
period-end
OVERSEAS CHINESE TOWN
523,746,932 RMB-denominated ordinary stock 523,746,932
HOLDINGS COMPANY
CITIC SECURITIES BROKERAGE
180,001,110 Domestically listed foreign stock 180,001,110
(HONG KONG) CO., LTD.
GUOYUAN SECURITIES BROKER
59,456,543 Domestically listed foreign stock 59,456,543
(HK) CO., LTD.
HOLY TIME GROUP LIMITED 57,289,100 Domestically listed foreign stock 57,289,100
GAOLING FUND,L.P. 29,037,555 Domestically listed foreign stock 29,037,555
WANG JINGFENG 25,625,800 RMB-denominated ordinary stock 25,625,800
ZHANG SUFEN 25,500,000 RMB-denominated ordinary stock 25,500,000
NAM NGAI 20,000,000 Domestically listed foreign stock 20,000,000
CHINA MERCHANTS SECURITIES
19,837,520 Domestically listed foreign stock 19,837,520
(HK) LIMITED
BOCOM INTERNATIONAL
18,896,037 Domestically listed foreign stock 18,896,037
SECURITIES LIMITED
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first majority
Related or acting-in-concert parties
shareholder Overseas Chinese Town Holdings Company (OCT Group), holds 180,001,110 and
among top 10 unrestricted ordinary
18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage
shareholders, as well as between top 10
(Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment
unrestricted ordinary shareholders and
Limited and OCT Group are parties acting in concert. Other than that, it is unknown whether the
top 10 shareholders
other shareholders are related parties or acting-in-concert parties or not.
Top 10 ordinary shareholders involved
Wang Jingfeng holds 25,500,000 A-shares in the Company through his securities account for
in securities margin trading (if any) (see
customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
note 4)
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in
refinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares
lending/return compared with the prior period
□ Applicable √ Not applicable
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.
□ Yes √ No
No such cases in the Reporting Period.
IV Change in Shareholdings of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
52
Konka Group Co., Ltd. Interim Report 2024
No changes occurred to the shareholdings of the directors, supervisors and senior management in
the Reporting Period. See the 2023 Annual Report for more details.
V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the de facto controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
53
Konka Group Co., Ltd. Interim Report 2024
Part VIII Preference Shares
□ Applicable √ Not applicable
No Preference shares in the Reporting Period.
54
Konka Group Co., Ltd. Interim Report 2024
Part IX 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’0,000
Bonds
Value balance Interest Way of Trade
Name Abbr. Code Issue date Due date
date (RMB’0,0 rate redemption place
00)
Interests
shall be paid
Privately placed every year
21 Shenzhen
corporate bonds in 2021 9 July 9 July 9 July and the
Konka 133040 80,000 3.95% Stock
of Konka Group Co., 2021 2021 2024 principals
03 Exchange
Ltd (Tranche III) shall be
repaid when
expired.
Interests
Corporate bonds shall be paid
publicly offered to every year
22 Shenzhen
professional investors in 14 July 14 July 14 July and the
Konka 149987 120,000 3.23% Stock
2022 of Konka Group 2022 2022 2025 principals
01 Exchange
Co., Ltd. (Tranche I) shall be
(Variety I) repaid when
expired.
Interests
Privately placed shall be paid
corporate bonds to every year
22 8 8 8 Shenzhen
professional investors in and the
Konka 133306 Septembe Septembe Septembe 60,000 3.30% Stock
2022 of Konka Group principals
03 r 2022 r 2022 r 2025 Exchange
Co., Ltd (Tranche I) shall be
(Variety I) repaid when
expired.
Interests
shall be paid
Privately placed
every year
corporate bonds to 22 18 18 18 Shenzhen
and the
professional investors in Konka 133333 October October October 60,000 3.50% Stock
principals
2022 of Konka Group 05 2022 2022 2025 Exchange
shall be
Co., Ltd (Tranche II)
repaid when
expired.
133759 29 29 29 150,000 4.00% Interests Shenzhen
Privately placed 24
January January January shall be paid Stock
55
Konka Group Co., Ltd. Interim Report 2024
corporate bonds to Konka 2024 2024 2027 every year Exchange
professional investors in 01 and the
principals
2024 of Konka Group
shall be
Co., Ltd (Tranche I) repaid when
expired.
Interests
Privately placed shall be paid
corporate bonds to every year
24 Shenzhen
professional investors in 18 March 18 March 18 March and the
Konka 133782 40,000. 4.00% Stock
2024 of Konka Group 2024 2024 2027 principals
02 Exchange
Co., Ltd (Tranche II) shall be
(Variety I) repaid when
expired.
Interests
Privately placed shall be paid
corporate bonds to every year
24 Shenzhen
professional investors in 18 March 18 March 18 March and the
Konka 133783 40,000. 4.03% Stock
2024 of Konka Group 2024 2024 2027 principals
03 Exchange
Co., Ltd (Tranche II) shall be
(Variety II) repaid when
expired.
“21 Konka 03”, “22 Konka 03”, “22 Konka 05”, “24 Konka 01”, “24 Konka 02” and “24
Konka 03” were placed privately to professional investors meeting the requirements of
management method for investors eligibility of Shenzhen Stock Exchange, which not
Appropriate arrangement of the investors (if any) exceeding 200 persons. “22 Konka 01” was offered publicly to professional institutional
investors meeting the requirements of Measures for the Administration of Issuing and
Trading Corporate Bonds and opening a qualified A-share securities account in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
“21 Konka 03”, “22 Konka 03”, “22 Konka 05”, “24 Konka 01”, “24 Konka 02” and “24
Konka 03”: negotiate-and-deal, click-and-deal, inquire-and-deal, and bid-and-deal
Applicable trade mechanism
“22 Konka 01”: Match-and-deal, negotiate-and-deal, click-and-deal, inquire-and-deal, and
bid-and-deal
Risk of delisting (if any) and countermeasures No
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
3. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
4. 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 “21 Konka
03”, “22 Konka 01”, “22 Konka 03”, “22 Konka 05”, “24 Konka 01”, “24 Konka 02” and “24
56
Konka Group Co., Ltd. Interim Report 2024
Konka 03”. The guarantees, redemption plans and other redemption security measures during the
Reporting Period were executed according to agreement. No change occurred. And there is no
significant impact on the interests of bond investors.
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
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
Impact on the Company's
Item Details of loss Reason for loss production, operation and
solvency
The Company followed the new
development strategy of "One
Axis, Two Wheels and Three
1. In the first half of 2024, the Company actively adjusted its
Growth Drivers," and adhered
sales strategy for its domestic color TV business and
to long-term value-oriented
optimized the product structure. Despite the year-over-year
principles as well as the
increase in the revenue and gross profit and the gradual
operational strategy of focusing
improvement of the operations, the Company's color TV
on the long term and improving
business still suffered a deficit due to the limited room for
specialization to become
reduction of necessary expenses and the continuously
stronger. It also deepened
intensifying competition in the industry.
integration for specialization
During the 2. In the first half of 2024, due to the changes in the prices of
and implemented lean
Reporting the trading financial assets held by the Company, the
management to promote high-
Period, the Company's net loss on changes in fair value was
quality development. The
Net profit Company's net approximately RMB-175 million, which affected the net
Company will allocate resources
attributabl loss attributable profit attributable to its shareholders.
to support the development of
e to to its 3. In the first half of 2024, based on the principle of
its core business, focusing on
sharehold shareholders prudence, the Company set aside provisions for asset
driving the growth and
ers of the was RMB1,088 impairment of approximately RMB255 million in accordance
profitability of the white goods
Company million, with accounting policies and estimates, resulting in a
and PCB sectors. Lean
accounting for decrease in profit.
management will be
23.89% of the 4. In the first half of 2024, the Company's semiconductor
implemented to enhance value
net assets. business was still at the initial phase of industrialization. In
creation and reduce losses in the
spite of the heavy investment, efficient large-scale
colour TV business. Innovation
production had not been achieved, which affected the
efforts will be directed towards
Company's overall operating profit.
capitalization and efficiency
5. The Company focused on two lines of business,
output of the semiconductor
"consumer electronics + semiconductor", and, with the
business, thereby creating a
industrial development needs taken into account, strategically
specialized business matrix. The
reduced the investment intensity, hence a year-on-year
loss for the reporting period will
decline in related income.
not affect the normal production
and operation of the Company
and the repayment of debts due.
57
Konka Group Co., Ltd. Interim Report 2024
VI 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 30 June 2024 31 December 2023 Change
Current ratio 90.81% 87.69% 3.56%
Debt/asset ratio 86.45% 83.51% 2.94%
Quick ratio 70.07% 70.07% 0.00%
H1 2024 H1 2023 Change
Net profit before exceptional
-110,307.86 -89,159.44 -23.72%
gains and losses
EBITDA/debt ratio -2.98% 1.19% -4.17%
Interest cover (times) -3.54 -0.11 -3118.18%
Cash-to-interest cover (times) -0.24 0.76 -131.58%
EBITDA-to-interest cover
-2.34 0.89 -362.92%
(times)
Debt repayment ratio (%) 100.00% 100.00% 0.00%
Interest payment ratio (%) 100.00% 100.00% 0.00%
58
Konka Group Co., Ltd. Interim Report 2024
Part X Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes √ No
The interim financial statements of the Company have not been audited by an independent auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd. 30 June 2024
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 5,514,370,579.43 6,506,359,577.02
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 294,937,209.31 469,636,700.78
Derivative financial assets
Notes receivable 301,987,637.11 533,171,949.15
Accounts receivable 1,856,961,440.23 1,726,545,973.08
Accounts receivable financing 203,279,738.30 173,396,326.14
Prepayments 139,219,299.00 165,454,311.51
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 829,528,634.29 989,121,067.51
Including: Interest receivable 7,770,148.68 6,681,258.01
Dividends receivable 14,705,644.62 941,482.38
Financial assets purchased under resale agreements
Inventories 3,404,537,028.08 3,249,897,700.98
Including: Data resource
Contract assets 2,712,594.37 2,190,385.93
Assets held for sale
Current portion of non-current assets
Other current assets 2,361,815,002.60 2,359,159,468.75
Total current assets 14,909,349,162.72 16,174,933,460.85
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 5,500,299,082.95 5,566,483,863.29
Investments in other equity instruments 23,841,337.16 23,841,337.16
Other non-current financial assets 1,985,908,473.73 2,009,676,398.00
Investment property 1,516,938,003.43 1,470,226,723.87
Fixed assets 5,050,425,327.42 5,218,297,745.16
Construction in progress 844,964,613.42 860,899,498.68
Productive living assets
Oil and gas assets
59
Konka Group Co., Ltd. Interim Report 2024
Right-of-use assets 199,746,862.53 197,054,423.17
Intangible assets 1,044,478,407.72 1,087,386,015.34
Including: Data resource
Development costs
Including: Data resource
Goodwill 22,196,735.11 22,196,735.11
Long-term prepaid expense 490,136,795.26 518,919,223.71
Deferred income tax assets 1,439,587,794.69 1,426,573,982.16
Other non-current assets 1,296,144,671.61 1,248,328,806.16
Total non-current assets 19,414,668,105.03 19,649,884,751.81
Total assets 34,324,017,267.75 35,824,818,212.66
Current liabilities:
Short-term borrowings 6,510,087,630.95 6,390,592,056.27
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 981,928,381.95 990,482,927.20
Accounts payable 2,940,551,760.72 2,726,831,675.97
Advances from customers 311,664.91
Contract liabilities 326,016,727.91 527,975,160.12
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 198,487,964.48 304,733,103.63
Taxes payable 51,565,332.83 214,417,135.87
Other payables 1,762,366,179.22 1,922,791,905.14
Including: Interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 3,600,939,407.57 5,314,147,396.36
Other current liabilities 46,276,463.29 54,330,715.75
Total current liabilities 16,418,531,513.83 18,446,302,076.31
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7,205,788,337.63 7,779,150,079.88
Bonds payable 4,796,908,712.83 2,426,992,578.67
Including: Preferred shares
Perpetual bonds
Lease liabilities 165,941,212.56 160,218,818.92
Long-term payables 4,957,346.58 6,135,734.07
Long-term employee benefits payable 4,661,069.67 4,718,466.37
Provisions 323,500,578.73 304,519,839.80
Deferred income 408,691,107.22 425,135,237.90
Deferred income tax liabilities 139,226,712.39 185,026,165.27
Other non-current liabilities 205,172,360.96 179,996,351.33
Total non-current liabilities 13,254,847,438.57 11,471,893,272.21
Total liabilities 29,673,378,952.40 29,918,195,348.52
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
60
Konka Group Co., Ltd. Interim Report 2024
Capital reserves 521,710,300.12 526,499,506.76
Less: Treasury stock
Other comprehensive income -14,125,068.08 -13,443,558.44
Specific reserve 6,615,537.36 4,657,488.24
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General reserve
Retained earnings 386,980,133.30 1,474,561,975.85
Total equity attributable to owners of the Company as the
4,553,306,674.94 5,644,401,184.65
parent
Non-controlling interests 97,331,640.41 262,221,679.49
Total owners’ equity 4,650,638,315.35 5,906,622,864.14
Total liabilities and owners’ equity 34,324,017,267.75 35,824,818,212.66
Legal representative: Cao Shiping
CFO: Nie Yong
Head of the financial department: Ping Heng
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 3,694,617,771.19 4,739,026,071.80
Held-for-trading financial assets 294,937,209.31 469,636,700.78
Derivative financial assets
Notes receivable 222,896,079.58 212,545,745.69
Accounts receivable 3,106,912,552.06 2,907,508,425.51
Accounts receivable financing 642,758.36
Prepayments 5,424,580,131.75 3,050,914,644.86
Other receivables 8,002,724,273.44 7,962,523,971.43
Including: Interest receivable 7,098,359.12 6,325,400.49
Dividends receivable 410,736,627.52 395,209,709.13
Inventories 299,147,504.71 74,359,735.29
Including: Data resource
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1,838,906,798.09 1,776,247,847.16
Total current assets 22,885,365,078.49 21,192,763,142.52
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 8,332,374,129.98 8,353,187,518.14
Investments in other equity instruments 17,940,215.36 17,940,215.36
Other non-current financial assets 396,353,137.96 396,353,137.96
Investment property 877,638,798.38 896,398,058.58
Fixed assets 397,097,652.85 408,039,474.28
Construction in progress 11,367,352.75 10,456,702.05
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 40,888,560.99 44,546,041.59
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense 39,527,817.85 43,352,655.77
Deferred income tax assets 1,186,943,851.11 1,186,943,851.11
61
Konka Group Co., Ltd. Interim Report 2024
Other non-current assets 43,471,716.30 42,958,066.97
Total non-current assets 11,343,603,233.53 11,400,175,721.81
Total assets 34,228,968,312.02 32,592,938,864.33
Current liabilities:
Short-term borrowings 2,422,190,833.33 2,344,154,349.99
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 49,606,194.38 83,813,428.75
Accounts payable 6,941,296,340.84 6,459,535,317.41
Advances from customers
Contract liabilities 1,760,530,391.45 943,718,573.19
Employee benefits payable 33,454,862.51 65,273,780.70
Taxes payable 7,818,682.23 9,069,845.15
Other payables 4,393,887,450.33 3,471,748,973.76
Including: Interest payable
Dividends payable
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 3,452,517,761.24 5,206,842,165.89
Other current liabilities 10,393,884.82 9,728,362.56
Total current liabilities 19,071,696,401.13 18,593,884,797.40
Non-current liabilities:
Long-term borrowings 5,981,642,333.84 6,655,411,621.10
Bonds payable 4,796,908,712.83 2,426,992,578.67
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 201,328,037.54 201,607,949.06
Deferred income 42,136,017.50 40,966,821.50
Deferred income tax liabilities 26,128,671.60 69,803,544.47
Other non-current liabilities 46,390,412.64 45,682,878.82
Total non-current liabilities 11,094,534,185.95 9,440,465,393.62
Total liabilities 30,166,230,587.08 28,034,350,191.02
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 329,941,716.72 341,229,750.75
Less: Treasury stock
Other comprehensive income -1,399,371.64 -1,399,371.64
Specific reserve
Surplus reserves 1,260,024,039.76 1,260,024,039.76
Retained earnings 66,225,932.10 550,788,846.44
Total owners’ equity 4,062,737,724.94 4,558,588,673.31
Total liabilities and owners’ equity 34,228,968,312.02 32,592,938,864.33
3. Consolidated Income Statement
Unit: RMB
Item H1 2024 H1 2023
1. Revenue 5,412,530,372.47 10,472,061,171.94
Including: Operating revenue 5,412,530,372.47 10,472,061,171.94
Interest income
Insurance premium income
Handling charge and commission income
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Konka Group Co., Ltd. Interim Report 2024
2. Costs and expenses 6,381,475,426.88 11,506,953,501.55
Including: Cost of sales 5,009,969,615.02 10,079,343,784.11
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 64,692,935.11 42,718,966.53
Selling expense 495,376,454.26 558,536,665.53
Administrative expense 315,946,020.02 390,244,567.77
R&D expense 214,578,026.81 237,033,893.11
Finance costs 280,912,375.66 199,075,624.50
Including: Interest expense 407,018,728.71 432,772,700.64
Interest income 116,244,724.79 123,908,981.38
Add: Other income 56,768,387.57 137,917,215.41
Return on investment (“-” for loss) 5,047,444.22 826,829,010.88
Including: Share of profit or loss of joint ventures and
-41,296,057.12 -30,242,661.05
associates
Income from the derecognition of financial assets at
-1,728,018.83
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -179,800,523.76 -132,580,077.43
Credit impairment loss (“-” for loss) -163,079,433.18 -140,192,679.36
Asset impairment loss (“-” for loss) -92,012,866.95 -15,283,496.76
Asset disposal income (“-” for loss) 590,329.38 64,713.62
3. Operating profit (“-” for loss) -1,341,431,717.13 -358,137,643.25
Add: Non-operating income 15,773,523.89 17,325,617.18
Less: Non-operating expense 6,155,804.84 4,326,608.02
4. Profit before tax (“-” for loss) -1,331,813,998.08 -345,138,634.09
Less: Income tax expense -51,275,843.13 -16,710,667.58
5. Net profit (“-” for net loss) -1,280,538,154.95 -328,427,966.51
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
-1,280,538,154.95 -328,427,966.51
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
-1,087,581,842.55 -193,240,232.33
Company as the parent (“-” for loss)
5.2.2 Net profit attributable to non-controlling interests
-192,956,312.40 -135,187,734.18
(“-” for loss)
6. Other comprehensive income, net of tax -2,253,474.92 -2,932,583.82
Attributable to owners of the Company as the parent -681,509.64 4,837.39
6.1 Items that will not be reclassified to profit or loss
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
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 -681,509.64 4,837.39
6.2.1 Other comprehensive income that will be
-83,919.23
reclassified to profit or loss under the equity method
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Konka Group Co., Ltd. Interim Report 2024
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
-597,590.41 4,837.39
currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -1,571,965.28 -2,937,421.21
7. Total comprehensive income -1,282,791,629.87 -331,360,550.33
Attributable to owners of the Company as the parent -1,088,263,352.19 -193,235,394.94
Attributable to non-controlling interests -194,528,277.68 -138,125,155.39
8. Earnings per share
8.1 Basic earnings per share -0.4517 -0.0803
8.2 Diluted earnings per share -0.4517 -0.0803
Legal representative: Cao Shiping
CFO: Nie Yong
Head of the financial department: Ping Heng
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Operating revenue 915,335,790.52 671,342,472.97
Less: Cost of sales 909,780,380.96 682,543,280.18
Taxes and surcharges 8,494,960.13 2,825,863.63
Selling expense 50,967,849.89 120,609,233.66
Administrative expense 93,947,054.64 136,536,029.86
R&D expense 13,571,658.64 15,002,427.03
Finance costs 216,389,535.25 158,153,694.90
Including: Interest expense 378,248,970.66 415,373,817.97
Interest income 153,071,010.77 181,172,038.86
Add: Other income 7,605,313.33 45,777,006.94
Return on investment (“-” for loss) 32,020,268.53 749,413,182.91
Including: Share of profit or loss of joint ventures and
9,290,355.87 -17,573,675.23
associates
Income from the derecognition of financial assets at
-152,875.26
amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -174,699,491.47 -145,356,925.98
Credit impairment loss (“-” for loss) -12,086,636.46 -22,515,556.31
Asset impairment loss (“-” for loss) -5,180,066.67 -5,669,387.21
Asset disposal income (“-” for loss) -110.13 18,634.76
2. Operating profit (“-” for loss) -530,156,371.86 177,338,898.82
Add: Non-operating income 2,512,547.44 1,209,609.70
Less: Non-operating expense 593,962.79 2,143,784.68
3. Profit before tax (“-” for loss) -528,237,787.21 176,404,723.84
Less: Income tax expense -43,674,872.87 64,758,360.48
4. Net profit (“-” for net loss) -484,562,914.34 111,646,363.36
4.1 Net profit from continuing operations (“-” for net
-484,562,914.34 111,646,363.36
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax
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
64
Konka Group Co., Ltd. Interim Report 2024
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
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 Other comprehensive income arising from the
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 -484,562,914.34 111,646,363.36
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
4,267,852,047.59 10,257,069,599.77
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 139,455,404.70 114,042,516.44
Cash generated from other operating activities 210,684,546.43 434,232,897.74
Subtotal of cash generated from operating activities 4,617,991,998.72 10,805,345,013.95
Payments for commodities and services 3,502,746,057.91 9,023,089,761.99
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
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 862,103,567.56 961,152,003.48
Taxes paid 226,961,849.89 267,360,124.35
Cash used in other operating activities 465,518,888.49 755,293,229.37
Subtotal of cash used in operating activities 5,057,330,363.85 11,006,895,119.19
Net cash generated from/used in operating activities -439,338,365.13 -201,550,105.24
2. Cash flows from investing activities:
Proceeds from disinvestment 28,078,887.19 889,008,792.86
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Konka Group Co., Ltd. Interim Report 2024
Return on investment 17,454,288.86 102,906,034.84
Net proceeds from the disposal of fixed assets,
1,648,546.24 5,504,209.67
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
18,818,889.67
business units
Cash generated from other investing activities 23,144,979.61 429,959,598.68
Subtotal of cash generated from investing activities 70,326,701.90 1,446,197,525.72
Payments for the acquisition of fixed assets, intangible
383,427,125.49 541,154,096.54
assets and other long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 2,127,401.00 471,154,667.83
Subtotal of cash used in investing activities 385,554,526.49 1,012,308,764.37
Net cash generated from/used in investing activities -315,227,824.59 433,888,761.35
3. Cash flows from financing activities:
Capital contributions received 391,891.90 600,000.05
Including: Capital contributions by non-controlling
391,891.90 600,000.05
interests to subsidiaries
Borrowings raised 9,415,119,545.51 6,347,967,876.40
Cash generated from other financing activities 354,016,478.39 270,299,841.72
Subtotal of cash generated from financing activities 9,769,527,915.80 6,618,867,718.17
Repayment of borrowings 9,327,233,269.01 5,423,409,343.95
Interest and dividends paid 270,910,689.62 417,032,889.60
Including: Dividends paid by subsidiaries to non-
126,628.99 735,000.00
controlling interests
Cash used in other financing activities 720,237,854.70 486,741,862.16
Subtotal of cash used in financing activities 10,318,381,813.33 6,327,184,095.71
Net cash generated from/used in financing activities -548,853,897.53 291,683,622.46
4. Effect of foreign exchange rates changes on cash and
7,010,247.78 44,134,367.10
cash equivalents
5. Net increase in cash and cash equivalents -1,296,409,839.47 568,156,645.67
Add: Cash and cash equivalents, beginning of the period 5,674,784,349.55 5,461,912,010.90
6. Cash and cash equivalents, end of the period 4,378,374,510.08 6,030,068,656.57
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1,602,584,444.18 1,612,906,405.48
services
Tax rebates 34,492,177.78 33,601,449.43
Cash generated from other operating activities 71,344,066.52 125,639,407.49
Subtotal of cash generated from operating activities 1,708,420,688.48 1,772,147,262.40
Payments for commodities and services 2,021,282,615.27 1,685,690,002.69
Cash paid to and for employees 113,835,388.28 163,714,700.87
Taxes paid 22,683,808.32 6,158,152.38
Cash used in other operating activities 161,079,943.22 258,237,321.10
Subtotal of cash used in operating activities 2,318,881,755.09 2,113,800,177.04
Net cash generated from/used in operating activities -610,461,066.61 -341,652,914.64
2. Cash flows from investing activities:
Proceeds from disinvestment 7,873,623.97 377,895,533.73
Return on investment 13,490,000.00 45,984,167.78
Net proceeds from the disposal of fixed assets,
20,138.36 463,991.29
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities 3,388,426,673.22 2,247,236,977.19
Subtotal of cash generated from investing activities 3,409,810,435.55 2,671,580,669.99
66
Konka Group Co., Ltd. Interim Report 2024
Payments for the acquisition of fixed assets, intangible
17,759,814.73 64,727,368.50
assets and other long-lived assets
Payments for investments 13,000,000.00 77,400,000.00
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 3,417,504,221.91 1,822,125,825.03
Subtotal of cash used in investing activities 3,448,264,036.64 1,964,253,193.53
Net cash generated from/used in investing activities -38,453,601.09 707,327,476.46
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 7,632,107,916.66 5,060,000,000.00
Cash generated from other financing activities 5,179,636,847.74 4,539,539,207.19
Subtotal of cash generated from financing activities 12,811,744,764.40 9,599,539,207.19
Repayment of borrowings 8,221,706,940.23 3,708,306,940.22
Interest and dividends paid 289,317,772.25 439,526,690.78
Cash used in other financing activities 4,969,550,553.21 5,451,482,339.89
Subtotal of cash used in financing activities 13,480,575,265.69 9,599,315,970.89
Net cash generated from/used in financing activities -668,830,501.29 223,236.30
4. Effect of foreign exchange rates changes on cash and
3,479,996.51 6,131,671.92
cash equivalents
5. Net increase in cash and cash equivalents -1,314,265,172.48 372,029,470.04
Add: Cash and cash equivalents, beginning of the period 4,263,319,288.76 3,833,613,544.22
6. Cash and cash equivalents, end of the period 2,949,054,116.28 4,205,643,014.26
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Konka Group Co., Ltd. Interim Report 2024
7. Consolidated Statements of Changes in Owners’ Equity
H1 2024
Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Other equity G
Les
instruments en O
s:
Item er t
Pre Per Tre Other Non-controlling
al h Total owners’ equity
Share capital ferr pet Ot Capital reserves asur comprehensive Specific reserve Surplus reserves Retained earnings Subtotal interests
re e
ed ual he y income
se r
sha bon r stoc
rv
res ds k
e
1. Balance as at the end of the
2,407,945,408.00 526,499,506.76 -13,443,558.44 4,657,488.24 1,244,180,364.24 1,474,561,975.85 5,644,401,184.65 262,221,679.49 5,906,622,864.14
period of prior year
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of the
2,407,945,408.00 526,499,506.76 -13,443,558.44 4,657,488.24 1,244,180,364.24 1,474,561,975.85 5,644,401,184.65 262,221,679.49 5,906,622,864.14
Reporting Period
3. Increase/ decrease in the period
-4,789,206.64 -681,509.64 1,958,049.12 -1,087,581,842.55 -1,091,094,509.71 -164,890,039.08 -1,255,984,548.79
(“-” for decrease)
3.1 Total comprehensive income -681,509.64 -1,087,581,842.55 -1,088,263,352.19 -194,528,277.68 -1,282,791,629.87
3.2 Capital increased and reduced
-4,789,206.64 -4,789,206.64 29,083,500.46 24,294,293.82
by owners
3.2.1 Ordinary shares increased by
391,891.90 391,891.90
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 -4,789,206.64 -4,789,206.64 28,691,608.56 23,902,401.92
3.3 Profit distribution
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to general
reserve
3.3.3 Appropriation to owners (or
shareholders)
3.3.4 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
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Konka Group Co., Ltd. Interim Report 2024
3.4.6 Other
3.5 Specific reserve 1,958,049.12 1,958,049.12 554,738.14 2,512,787.26
3.5.1 Increase in the period 2,537,402.71 2,537,402.71 589,725.35 3,127,128.06
3.5.2 Used in the period 579,353.59 579,353.59 34,987.21 614,340.80
3.6 Other
4. Balance as at the end of the
2,407,945,408.00 521,710,300.12 -14,125,068.08 6,615,537.36 1,244,180,364.24 386,980,133.30 4,553,306,674.94 97,331,640.41 4,650,638,315.35
Reporting Period
H1 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity O
instruments Less: Spec Gene t
Item Other Non-controlling
Perp Treasu ific ral h Total owners’ equity
Share capital Prefer O Capital reserves comprehensive Surplus reserves Retained earnings Subtotal interests
etual ry reser reser e
red th income
bond stock ve ve r
shares er
s
1. Balance as at the end of the
2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,637,291,770.33 7,640,399,721.99 820,973,239.93 8,461,372,961.92
period of prior year
Add: Adjustment for change in
1,576,234.17 1,576,234.17 136,147.01 1,712,381.18
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of
2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,638,868,004.50 7,641,975,956.16 821,109,386.94 8,463,085,343.10
the Reporting Period
3. Increase/ decrease in the period
72,867,671.02 4,837.39 -192,680,226.89 -119,807,718.48 -139,649,988.36 -259,457,706.84
(“-” for decrease)
3.1 Total comprehensive income 4,837.39 -193,240,232.33 -193,235,394.94 -138,125,155.39 -331,360,550.33
3.2 Capital increased and reduced
72,867,671.02 72,867,671.02 -789,832.97 72,077,838.05
by owners
3.2.1 Ordinary shares increased by
600,000.03 600,000.03
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 72,867,671.02 72,867,671.02 -1,389,833.00 71,477,838.02
3.3 Profit distribution -735,000.00 -735,000.00
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to general
reserve
3.3.3 Appropriation to owners
-735,000.00 -735,000.00
(or shareholders)
3.3.4 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
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Konka Group Co., Ltd. Interim Report 2024
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 560,005.44 560,005.44 560,005.44
4. Balance as at the end of the
2,407,945,408.00 438,115,032.07 -14,260,344.24 1,244,180,364.24 3,446,187,777.61 7,522,168,237.68 681,459,398.58 8,203,627,636.26
Reporting Period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024
Unit: RMB
H1 2024
Other equity instruments O
t
Less:
Item Other comprehensive Specific h
Share capital Preferre Perpetua Capital reserves Treasury Surplus reserves Retained earnings Total owners’ equity
Other income reserve e
d shares l bonds stock
r
1. Balance as at the end of the period of prior year 2,407,945,408.00 341,229,750.75 -1,399,371.64 1,260,024,039.76 550,788,846.44 4,558,588,673.31
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments
2. Balance as at the beginning of the Reporting
2,407,945,408.00 341,229,750.75 -1,399,371.64 1,260,024,039.76 550,788,846.44 4,558,588,673.31
Period
3. Increase/ decrease in the period (“-” for
-11,288,034.03 -484,562,914.34 -495,850,948.37
decrease)
3.1 Total comprehensive income -484,562,914.34 -484,562,914.34
3.2 Capital increased and reduced by owners -11,288,034.03 -11,288,034.03
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
3.2.4 Other -11,288,034.03 -11,288,034.03
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or
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
70
Konka Group Co., Ltd. Interim Report 2024
3.6 Other
4. Balance as at the end of the Reporting Period 2,407,945,408.00 329,941,716.72 -1,399,371.64 1,260,024,039.76 66,225,932.10 4,062,737,724.94
H1 2023
Unit: RMB
H1 2023
Other equity instruments O
t
Less:
Item Other comprehensive Specific h
Share capital Preferred Perpetua Capital reserves Treasury Surplus reserves Retained earnings Total owners’ equity
Other income reserve e
shares l bonds stock
r
1. Balance as at the end of the period of prior
2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,306,066,395.60 5,213,580,233.91
year
Add: Adjustment for change in accounting
policy
Adjustment for correction of previous error
Other adjustments -6,088,070.45 -6,088,070.45
2. Balance as at the beginning of the Reporting
2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,299,978,325.15 5,207,492,163.46
Period
3. Increase/ decrease in the period (“-” for
72,867,671.02 111,646,363.36 184,514,034.38
decrease)
3.1 Total comprehensive income 111,646,363.36 111,646,363.36
3.2 Capital increased and reduced by owners 72,867,671.02 72,867,671.02
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
3.2.4 Other 72,867,671.02 72,867,671.02
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or
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 Reporting Period 2,407,945,408.00 313,912,061.57 -1,500,000.00 1,260,024,039.76 1,411,624,688.51 5,392,006,197.84
71
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2024 to 30 June 2024
(All amounts in RMB yuan unless otherwise stated)
I. Company Profile
1. Establishment
Konka Group Co., Ltd. (hereinafter referred to as “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 30 June 2024, 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 consumer electronics and semiconductor businesses,
conducting the production and sales of colour TVs, white goods, optoelectronic display, storage
and printed circuit Boards, etc.
4. The financial statements contained herein have been approved for issue by the Board of
Directors of the Company on 29 August 2024.
II. Consolidation scope
The Company has a total of 111 subsidiaries included in the consolidation scope including
Shenzhen Konka Electronics Technology Co., Ltd., Anhui Konka Electronic Co., Ltd. and
Dongguan Konka Electronic Co., Ltd. The consolidation scope of the Company for the Reporting
Period decreased by 5 households including Konka Huanjia Environmental Technology Co., Ltd.,
Shenzhen Wankaida Science and Technology Co., Ltd., etc. due to losing control for bankruptcy
and liquidation of subsidiaries or cancellation compared to the same period of last year.
For details, please refer to Note 8 “Changes in the consolidation scope” and Note 9 "Equity in
72
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Other Entities".
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 Nantong Haimen Konka Smart Technology Co., Ltd. Haimen Konka
3 Chengdu Konka Smart Technology Co., Ltd. Chengdu Konka Smart
4 Chengdu Konka Electronic Co., Ltd. Chengdu Konka Electronic
5 Nantong Hongdin Smart Technology Co., Ltd. Nantong Hongdin
Shenzhen Kangcheng Technology Innovation and Development
6 Shenzhen Kangcheng
Co., Ltd.
7 Xiaojia Technology Co., Ltd. Xiaojia Technology
8 Liaoyang Kangshun Smart Technology Co., Ltd. Liaoyang Kangshun Smart
9 Liaoyang Kangshun Renewable Resources Co., Ltd. Liaoyang Kangshun Renewable
10 Nanjing Konka Electronics Co., Ltd. Nanjing Konka
Chuzhou Konka Precision Intelligent Manufacturing Technology
11 Chuzhou Konka
Co., Ltd.
12 GuangDong XingDa HongYe Electronic Co., Ltd. XingDa HongYe
13 Shenzhen Konka Circuit Co., Ltd. Konka Circuit
14 Suining Konka Flexible Electronic Technology Co., Ltd. Konka Flexible Electronic
15 Suining Konka Hongye Electronics Co., Ltd. Konka Hongye Electronics
16 Boluo Konka Precision Technology Co., Ltd. Boluo Precision
17 Boluo Konka PCB Co., Ltd. Boluo Konka
18 Anhui Konka Tongchuang Electrical Appliances Co., Ltd. Anhui Tongchuang
19 Jiangsu Konka Smart Electrical Appliances Co., Ltd. Jiangsu Konka Smart
20 Anhui Konka Electrical Appliance Technology Co., Ltd. Anhui Electrical Appliance
21 Henan Frestec Refrigeration Appliance Co., Ltd. Frestec Refrigeration
22 Henan Frestec Electrical Appliances Co., Ltd. Frestec Electrical Appliances
23 Henan Frestec Household Appliances Co., Ltd. Frestec Household Appliances
24 Henan Frestec Smart Home Technology Co., Ltd. Frestec Smart Home
73
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
25 Shenzhen Konka Investment Holdings Co., Ltd. Konka Investment
26 Yibin Konka Technology Park Operation Co., Ltd. Yibin Konka Technology Park
27 Shenzhen Konka Capital Equity Investment Management Co., Ltd. Konka Capital
28 Konka Suiyong Investment (Shenzhen) Co., Ltd. Konka Suiyong
29 Shenzhen Konka Shengxing Industrial Co., Ltd. Shengxing Industrial
30 Shenzhen Konka Zhitong Technology Co., Ltd. Zhitong Technology
31 Konka Electronic Material Technology (Shenzhen) Co., Ltd. Konka Electronic Material
32 Beijing Konka Electronic Co., Ltd. Beijing Konka Electronic
33 Tianjin Konka Technology Co., Ltd. Tianjin Konka
34 Suining Konka Industrial Park Development Co., Ltd. Suining Konka Industrial Park
Suining Electronic Technological
35 Suining Konka Electronic Technological Innovation Co., Ltd.
Innovation
36 Shanghai Konka Industrial Co., Ltd. Shanghai Konka
37 Yantai Kangjin Technology Development Co., Ltd. Yantai Kangjin
38 Shenzhen Konka Mobile Interconnection Technology Co., Ltd. Mobile Interconnection
39 Sichuan Konka Smart Terminal Technology Co., Ltd Sichuan Konka
40 Yibin Konka Smart Technology Co., Ltd. Yibin Smart
41 Shenzhen KONSEMI Co., Ltd. Shenzhen KONSEMI
42 Chongqing Konka Technology Development Co., Ltd. Chongqing Konka
43 Kowin Memory Technology (Shenzhen) Co., Limited Kowin Memory (Shenzhen)
44 Kowin Memory Technology (Hong Kong) Co., Limited Kowin Memory (Hong Kong)
45 Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd. Konka Xinyun Semiconductor
46 Konka Cross-border (Hebei) Technology Development Co., Ltd. Konka Cross-border (Hebei)
47 Shenzhen Nianhua Enterprise Management Co., Ltd. Shenzhen Nianhua
48 Konka Huazhong (Hunan) Technology Co., Ltd. Konka Huazhong
49 Shenzhen Wankaida Science and Technology Co., Ltd. Wankaida
Shenzhen Chuangzhi Electrical
50 Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Appliances
74
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
51 Suining Jiarun Property Co., Ltd. Suining Jiarun Property
52 Anhui Konka Electronic Co., Ltd. Anhui Konka
53 Anhui Kangzhi Trade Co., Ltd. Kangzhi Trade
54 Shenzhen Konka Telecommunications Technology Co., Ltd. Telecommunication Technology
55 Konka Mobility Co., Limited Konka Mobility
56 Dongguan Konka Electronic Co., Ltd. Dongguan Konka
57 Suining Konka Smart Technology Co., Ltd. Suining Konka Smart
Chongqing Optoelectronic
58 Chongqing Konka Optoelectronic Technology Co., Ltd.
Technology
59 Yibin Kangrun Environmental Technology Co., Ltd. Yibin Kangrun
60 Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd. Yibin Kangrun Medical
61 Ningbo Khr Electric Appliance Co., Ltd. Ningbo Khr Electric Appliance
62 Jiangxi Konka New Material Technology Co., Ltd. Jiangxi Konka
Jiangxi High Transparent
63 Jiangxi High Transparent Substrate Material Technology Co., Ltd.
Substrate
64 Jiangxi Xinfeng Microcrystalline Jade Co., Ltd. Xinfeng Microcrystalline
65 Konka Huanjia Environmental Technology Co., Ltd. Konka Huanjia
66 Konka Huanjia (Henan) Environmental Technology Co., Ltd. Konka Huanjia (Henan)
67 Shanxi Konka Intelligent Appliance Co., Ltd. Shanxi Konka Intelligent
68 Shenzhen Konka Pengrun Technology & Industry Co., Ltd. Pengrun Technology
69 Jiaxin Technology Co., Ltd. Jiaxin Technology
70 Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd. Konka Ronghe
71 Shenzhen Konka Unifortune Technology Co., Ltd. Konka Unifortune
72 Jiali International (Hong Kong) Limited Jiali International
73 Sichuan Kangjiatong Technology Co., Ltd. Kangjiatong
Jiangkang (Shanghai)
74 Jiangkang (Shanghai) Technology Co., Ltd.
Technology
75 Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd. Konka Intelligent Manufacturing
76 Hainan Konka Technology Co., Ltd. Hainan Konka Technology
75
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
77 Konka Ventures Development (Shenzhen) Co., Ltd. Konka Ventures
78 Yibin Konka Incubator Management Co., Ltd. Yibin Konka Incubator
79 Yantai Konka Healthcare Enterprise Service Co., Ltd. Yantai Konka
Chengdu Anren Konka Cultural and Creative Incubator
80 Chengdu Anren
Management Co., Ltd.
81 Guiyang Konka Enterprise Service Co., Ltd. Konka Enterprise Service
82 Shenzhen Konka Eco-Development Investment Co., Ltd. Konka Eco-Development
83 Konka (Europe) Co., Ltd. Konka Europe
84 Hong Kong Konka Limited Hong Kong Konka
85 Hongdin International Trading Limited Hongdin Trading
86 Konka North America LLC Konka North America
87 Kanghao Technology Co., Ltd. Kanghao Technology
88 Hongdin Invest Development Limited Hongdin Invest
Chain Kingdom Memory
89 Chain Kingdom Memory Technologies Co., Limited
Technologies
Chain Kingdom Semiconductor
90 Chain Kingdom Semiconductor (Shaoxing) Co., Ltd.
(Shaoxing)
91 Hongjet (Hong Kong) Company Limited Hongjet
Chongqing Xinyuan
92 Chongqing Xinyuan Semiconductor Co., Ltd.
Semiconductor
93 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
Shenzhen Kanghong Dongsheng Investment Partnership (Limited
94 Kanghong Dongsheng
Partnership)
Guizhou Konka New Material
95 Guizhou Konka New Material Technology Co., Ltd.
Technology
96 Guangdong Xinwei Semiconductor Co., Ltd. Guangdong Xinwei
Guizhou Kanggui Material
97 Guizhou Kanggui Material Technology Co., Ltd.
Technology
98 Nantong Kanghai Technology Industry Development Co., Ltd. Nantong Kanghai
99 Chongqing Kangyiyun Business Operation Management Co., Ltd. Chongqing Kangyiyun
Jiangxi Konka High-tech Park Operation and Management Co.,
100 Jiangxi Konka High-tech Park
Ltd.
76
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
Shangrao Konka Electronic
101 Shangrao Konka Electronic Technology Innovation Co., Ltd.
Technology Innovation
102 Guizhou Konka New Energy Material Technology Co., Ltd. Guizhou Konka New Energy
103 Zhejiang Konka Electronics Co., Ltd. Zhejiang Konka Electronic
Zhejiang Konka Technology
104 Zhejiang Konka Technology Industry Development Co., Ltd.
Industry
105 Xi'an Konka Intelligent Appliance Co., Ltd. Xi'an Konka Intelligent
106 Xi'an Konka Network Technology Co., Ltd. Xi'an Konka Network
Xi'an Kanghong Technology
107 Xi'an Kanghong Technology Industry Development Co., Ltd.
Industry
Xi'an Konka Intelligent
108 Xi'an Konka Intelligent Technology Development Co., Ltd.
Technology
109 Anhui Konka Low Carbon Technology Co., Ltd. Anhui Konka Low Carbon
Shenzhen Kanghong Xintong Investment Partnership (Limited
110 Kanghong Xintong
Partnership)
111 Songyang Konka Smart Industry Operation Management Co., Ltd. Songyang Industry Operation
112 Shenzhen Kangyan Technology Co., Ltd. Kangyan Technology
113 Konka Photovoltaic Technology Co., Ltd. Konka Photovoltaic Technology
114 Songyang Konka Intelligent Technology Development Co., Ltd. Songyang Konka Intelligent
115 Konka North China (Tianjin) Technology Co., Ltd. Konka North China
116 Shenzhen Konka Digital Technology Development Co., Ltd. Digital Technology
III. Basis for the Preparation of Financial Statements
1. Basic for the preparation
The Group's financial statements were prepared in accordance with the Accounting Standards for
Business Enterprises promulgated by the Ministry of Finance as well as guidelines on accounting
standards for business enterprises, announcements on interpreting the accounting standards for
business enterprises and other related regulations (hereinafter collectively referred to as the
"Accounting Standards for Business Enterprises"), as well as the disclosure regulations of the General
Provisions on Financial Reporting No. 15 for Companies Publicly Issuing Securities (revised in 2023)
by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC").
77
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2. Going-concern
The Group has evaluated its ability to continue as a going concern for 12 months since the end of
the Reporting Period, and has not found any matters or situations that raise significant doubts
about its ability to continue as a going concern. Therefore, the financial statements are presented
on a going concern basis.
IV. Important Accounting Policies and Estimations
Specific accounting policies and accounting estimates: The specific accounting policies and
accounting estimates formulated by the Group according to the actual production and operation
characteristics include provisions for bad debts of accounts receivable, provisions for inventory
depreciation, depreciation of fixed assets, revenue recognition and measurement, etc.
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, accurately and completely
present the Group’s financial positions on 30 June 2024, business results and cash flows, and other
relevant information for H1 2024.
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. Methodology for Determining Materiality Criteria and Basis for Selection
The Group prepares and discloses financial statements adhering to the principle of materiality. The
disclosures in the notes to the financial statements cover matters involving judgments about
materiality criteria, the methods for determining materiality thresholds, and the bases for selecting
these criteria:
78
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements
Significant individually bad Note VI-4. Accounts
Individual amount exceeding RMB50,000,000
debt provisioned receivables receivable (2)
Receivables with significant
amount of bad debt provision Note VI-4. Accounts
Individual amount exceeding RMB10 million
recovered or reversed during receivable (3)
the period
Significant write-offs of
Note VI-4. Accounts
receivables during the period Individual amount exceeding RMB10 million
receivable (4)
Write-offs
Significant accounts payable Note VI-26. Accounts
Individual amount exceeding RMB10 million
aged over 1 year payable
Significant receipts in advance Note VI-27;
and contractual Note VI-28;
liabilities/projected Individual amount exceeding RMB10 million
Note VI-31;
liabilities/other payables aged
Note VI-39
over 1 year
Note VI-16.
Significant construction in Increase or decrease in a single asset during the year
Construction in
progress project or a balance exceeding RMB0.1 billion
progress (2)
6. Accounting Treatment Methods for Business Combinations under the Same Control or
not under the Same Control
(1) Business Combinations under the Same Control
A business combination involving entities under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.
As the combining party, the assets and liabilities obtained by the Group in a business combination
79
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 (or aggregate nominal
amount of shares issued), the capital reserve shall be adjusted. If the capital reserve is not
sufficient to be offset, the retained earnings shall be adjusted.
(2) Business Combinations not under the Same Control
A business combination involving entities not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties
both before and after the combination.
As purchaser, 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 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 merger costs 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.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial
Statements
The scope of consolidation for the consolidated financial statements of the Group is based on
control, including the Company and all its subsidiaries (including enterprises, divisible parts of
investees, and structured entities controlled by the Company). The Group assesses control based
on whether it has power over the investee, has exposure or rights to variable returns from its
involvement with the investee, and has the ability to use its power over the investee to affect the
amount of the investor's returns.
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.
The impact of internal transactions between the Company and its subsidiaries, as well as between
subsidiaries and each other, was offset in consolidation. 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
80
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
81
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 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.
8. Classification of Joint arrangements and Accounting Treatment of Joint Operations
82
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
9. 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.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency transaction
Foreign currency transactions of the Group are initially recognized at the exchange rate at the
beginning of the month of the transaction date (usually referring to the middle rate of the foreign
exchange rate announced by the People's Bank of China on the day, the same below), converting
the foreign currency amount into the functional currency amount. 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 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.
11. Financial Instruments
83
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.
The Company's financial assets (or a portion of a financial asset, or a part of a group of similar
financial assets) shall be derecognized when meeting any of the following conditions, meaning
they are removed from the accounts and the balance sheet:1) The right to receive cash flows from
the financial asset expires; 2) The financial asset is transferred, and the Group has transferred
substantially all risks and rewards of ownership of the financial asset; 3) The financial asset is
transferred, and the Group has neither transferred nor retained substantially all risks and rewards
of ownership, and has not retained control over the financial asset.
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.
All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.
(2) Classification 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
84
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
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.
85
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
(3) 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 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.
(4) Impairment of Financial Instrument
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,
86
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
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.
87
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
(5) 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
88
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
(6) The distinction between financial liabilities and equity instruments and related treatment
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.
(7) Offsetting financial assets and financial liabilities
89
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
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
Bank Acceptance The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of acceptors (the same as accounts 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.
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.
Related party The accounts receivable from the other entities within the consolidation
combination scope
14. Accounts Receivable Financing
The Group’s accounts receivable financing is based on expected credit losses, and provision is
90
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
Aging
This portfolio is other receivables with aging as the credit risk feature.
Combination
This combination shall regard other receivables of extremely low risk (including
Low Risk
the revolving fund, the cash deposit and the guarantee deposit) as the credit risk
Combination
feature.
Related party
Other receivables from the other entities within the consolidation scope
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
91
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
17. Inventories
The Group's inventories mainly include raw materials, products in process, semi-finished products,
Products on hand,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.
92
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(2) Determination method and accounting treatment method of expected credit loss of contract
assets
The method for determining the expected credit losses of contract assets involves measuring the
impairment losses of contract assets by referencing the method used for the impairment loss
measurement of receivables as previously described.
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. Assets Relating to 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
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.
93
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(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
94
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
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
95
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
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
96
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
97
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 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
98
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 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 and Straight-line
1 20-40 5-10.00 2.25-4.75
building depreciation
Machinery Straight-line
2 5-10 5-10.00 9.00-19.00
equipment depreciation
Electronic Straight-line
3 3-5 5-10.00 18.00-31.67
equipment depreciation
4 3-5 5-10.00 18.00-31.67
Transportation Straight-line
99
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
vehicle depreciation
Straight-line
5 Other equipment 5 5-10.00 18.00-19.00
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
The cost of construction in progress is determined based on actual project expenditures, including
all necessary project expenditures incurred during construction, borrowing costs to be capitalized
before the project reaches its predetermined usable state, and other related expenses, etc.
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.
Construction in progress is transferred to fixed assets upon reaching the predetermined usable state,
with the criteria as follows:
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially
completed, meeting the predetermined design requirements. Upon
joint acceptance by the Company’s Engineering Department and
units responsible for surveying, design, construction, supervision,
Houses and buildings
etc., and government departments such as the Fire Services
Department and the Housing Authority, and reaching the
predetermined usable state following process approval, it is
transferred to fixed assets.
The equipment management department and the equipment
machinery and equipment manufacturer are jointly responsible for the installation and
commissioning of the equipment, including hardware debugging,
100
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Criteria for carrying forward fixed assets
process conditions debugging, etc. Upon completion of debugging
and reaching the predetermined usable state following process
approval, it is transferred to fixed assets.
24. Borrowing Costs
The Group capitalizes borrowing costs directly attributable to the acquisition, construction, or
production of qualifying assets as part of the cost of those assets. Other borrowing costs are
recognized as expenses in the current period. The assets determined by the Group that meet the
conditions for capitalization include: 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.
During the capitalization period, the Group recognizes the amount of borrowing costs capitalized
in each accounting period using the following method: In the case of borrowing special-purpose
borrowings, the amount of interest expense actually incurred in the current period, less interest
income earned on the unused borrowed funds deposited in the bank or investment income earned
on temporary investments, shall be capitalized; in the case of occupying general borrowings, the
amount shall be determined on the basis of the weighted average number of asset expenditures for
the portion of accumulated asset expenditures in excess of the special-purpose borrowings
multiplied by the capitalization rate of the general borrowings occupied, where the capitalization
rate is calculated and determined on the basis of the weighted average interest rate of the general
The capitalization rate is based on the weighted average interest rate of general borrowings.
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
101
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
(3)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.
(4)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.
102
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(1) Useful life and its determination basis, estimation, amortization method, or review procedure
The Group's intangible assets include land use rights, patented technology, non-patented
technology, etc., measured at the actual cost at the time of acquisition. For purchased intangible
assets, the actual cost is determined by the actual payment made and related expenditures. For
intangible assets contributed by investors, the actual cost is determined based on the value agreed
upon in the investment contract or agreement; however, if the contractually agreed value is not fair,
the fair value is used to determine the actual cost. Intangible assets such as patents, which are
acquired in a business combination under common control but not recognized in the financial
statements of the acquiree, are recognized as intangible assets at their fair value upon initial
recognition of the assets of the acquiree.
(2) Scope of R&D expenditures and related accounting treatment
The scope of the Group's R&D expenditures includes salaries of R&D personnel, direct input
costs, depreciation and amortization, design fees, equipment testing fees, fees for R&D outsourced
to external parties, and other expenses.
The Group classifies its internal research and development project expenditures into expenditure
on the research phase and expenditure on the development phase, based on the nature of the
expenditures and the degree of uncertainty in whether the R&D activities will result in an
intangible asset. Expenditure on the research phase are recognized in profit or loss when incurred.
Expenditure on the development phase are capitalized when all of the following conditions are
met:
a) The Group has assessed the technical feasibility of completing the intangible asset so that it will
be available for use or sale.
b) The Group intends to complete the intangible asset and use or sell it.
c) It is probable that the intangible asset will generate future economic benefits.
d) The Group has the adequate technical, financial, and other resources to complete the
development and to use or sell the intangible asset.
e) The expenditure attributable to the development phase of the intangible asset can be measured
reliably. Development phase expenditures not meeting these capitalization criteria are recognized
in profit or loss for the current period when incurred.
27. Impairment of Long-term Assets
For non-current non-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. Goodwill, intangible assets with uncertain service life and other non-accessible
intangible assets should be tested for impairment at the end of each year, regardless of whether
there is any indication of impairment.
(1) Impairment of non-current assets other than financial assets (except goodwill)
103
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
(2) Impairment of goodwill
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
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
104
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
105
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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.
106
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(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 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.
The projected liabilities are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation, with the risks related to contingent
matters, uncertainty, the time value of money, and other factors taken into consideration. The
Group reviews the current best estimate of the provisions for contingent liabilities at the balance
sheet date and adjusts the carrying amount of the provision as necessary.
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.
107
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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:
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
108
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
109
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
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
110
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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. 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.
111
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
112
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(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.
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
113
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 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
114
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 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
115
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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
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
The Ministry of Finance issued the Accounting Standards for Business Enterprises Interpretation
No. 17 (C.K. [2023] No. 21) (hereinafter referred to as “Interpretation No. 17”) on 25 October
2023.
① Since 1 January 2024, the Group starts to implement the regulation of the Interpretation No. 17
issued by the Ministry of Finance regarding the classification of current liabilities and non-current
liabilities, which has no impacts on the financial statements of the Company.
② Since 1 January 2024, the Group starts to implement the regulation of the Interpretation No.
17 issued by the Ministry of Finance regarding the disclosure of the financing arrangement of
suppliers, which has no impacts on the financial instatements of the Company.
116
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
③ Since 1 January 2024, the Group starts to implement the regulation of the Interpretation No.
17 issued by the Ministry of Finance regarding the accounting treatment for sale-leaseback
transactions, which has no impacts on the financial statements of the Company.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.
V. Taxation
1. Main Taxes and Tax Rate
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% by subsidiaries including:
Dongguan Konka, XingDa HongYe,
Xinfeng Microcrystalline, Boluo Konka
Precision, Boluo Konka, Ningbo
Kanghanrui, Jiangsu Konka Smart, Yibin
Kangrun, Yibin Kangrun Medical, Konka
Ronghe, Chain Kingdom Semiconductor
(Shaoxing), Guizhou Kanggui Materials,
Zhejiang Konka Electronic, Songyang
Konka Intelligent
Urban Paid reduced by half at 7% by subsidiaries
The circulating tax actually including: Liaoyang Kangshun Renewable,
maintenance and
paid Zhitong Technology, Yibin Smart,
construction tax
Shenzhen Nianhua, Anlu Konka, Jiangxi
Konka High-tech Park, Kanghong Xintong
Paid reduced by half at 5% by subsidiaries
including: Jiangkang (Shanghai)
Technology, Guizhou Konka New Material,
Guizhou Konka New Energy, Zhejiang
Konka Technology Industry
Paid at 1%: Jiangxi Konka, Jiangxi High
Transparent Substrate
Paid at 7%: other subsidiaries.
Paid reduced by half at 3% by subsidiaries
The circulating tax actually including: Liaoyang Kangshun Renewable,
Education surtax
paid Zhitong Technology, Yibin Smart,
Shenzhen Nianhua, Anlu Konka, Jiangxi
117
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Category of taxes Basis Specific situation of the taxes rate
Konka High-tech Park, Kanghong Xintong,
Jiangkang (Shanghai) Technology, Zhejiang
Konka Technology Industry
Paid at 3%: other subsidiaries.
Paid reduced by half at 2% by subsidiaries
including: Liaoyang Kangshun Renewable,
Zhitong Technology, Yibin Smart,
Local education The circulating tax actually Shenzhen Nianhua, Anlu Konka, Jiangxi
surtax paid Konka High-tech Park, Kanghong Xintong,
Jiangkang (Shanghai) Technology, Zhejiang
Konka Technology Industry
Paid at 2%: other subsidiaries.
Enterprise income 25%/ See 2.Tax Preference and Approved
Taxable income
tax Documents for details
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, Shanxi Konka, Jiangsu Konka,
15%
Xinfeng Microcrystalline, Boluo Precision,
Chengdu Konka Electronic, Xiaojia Technology
Hong Kong Konka, Hongdin Trading, Jiali
International, Hongjet, Jiaxin Technology, Hongdin
16.5%
Invest, Konka Mobility, Kowin Memory (Hong
Kong)
Chain Kingdom Memory Technologies 16.5%
Konka Europe 15%
Kanghao Technology 22.5%
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
118
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
at the year-end.
2. Tax Preference and Approved Documents
(1) According to the announcement of the State Administration of Taxation No. 12 of 2023: Small
enterprises with small profits shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20%, which shall be continued until 31 December 2027.
(2) On 18 October 2022, Anhui Konka, a subsidiary of the Company, obtained the Certificate of
High-Tech Enterprise jointly issued by the Department of Science and Technology of Anhui
Province, the Department of Finance of Anhui Province and the Taxation Bureau of Anhui
Province of the State Administration of Taxation, with the certificate number GR202234002272,
which is valid for three years. In accordance with the relevant tax regulations, Anhui Konka is
entitled to the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
preferential tax rate of 15%.
(3) On 4 November 2022, Xinfeng Microcrystalline, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Jiangxi Province, the Department of Finance of Jiangxi Province and the Taxation Bureau of
Jiangxi Province of the State Administration of Taxation, with the certificate number
GR202236000999, which is valid for three years. According to the relevant tax regulations,
Xinfeng Microcrystalline is entitled to the relevant tax incentives for three consecutive years from
2022 to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay
enterprise income tax at a preferential tax rate of 15%.
(4) On 18 October 2022, Anhui Tongchuang, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Anhui Province, the Department of Finance of Anhui Province and the Taxation Bureau of
Anhui Province of the State Administration of Taxation, with the certificate number
GR202234000798, which is valid for three years. In accordance with the relevant tax regulations,
Anhui Tongchuang is entitled to the relevant tax incentives for three consecutive years from 2022
to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay enterprise
income tax at a preferential tax rate of 15%.
(5) On 22 December 2022, Boluo Precision, 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. GR202244017658), which will be valid for three years.
According to relevant tax regulations, Boluo Precision enjoys relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2022 to 2024, and pays enterprise income
tax at a reduced rate of 15%.
(6) On 19 December 2022, Electronic Technology, a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
119
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Administration of Taxation, with the certificate number GR202244205867, which is valid for
three years. In accordance with the relevant tax regulations, Electronic Technology is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(7) On 19 December 2022, Xiaojia Technology, a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202244203274, which is valid for
three years. In accordance with the relevant tax regulations, Xiaojia Technology is entitled to the
relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(8) On 29 November 2023, Shanxi Konka, a subsidiary of the Company, obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Shanxi
Province, Department of Finance of Shanxi Province and Shanxi Provincial Tax Service of State
Taxation Administration (No. GR202361002167), which will be valid for three years. According
to relevant tax regulations, Shanxi Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025, and pays enterprise income tax at a
reduced rate of 15%.
(9) On 6 November 2023, Jiangsu Konka, a subsidiary of the Company, obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Jiangsu
Province, Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of State
Taxation Administration (No. GR202332008044), which will be valid for three years. According
to relevant tax regulations, Jiangsu Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025, and pays enterprise income tax at a
reduced rate of 15%.
(10) In accordance with the Announcement on the Renewal of the Enterprise Income Tax Policy
for Western Development Enterprises (Ministry of Finance, General Administration of Taxation,
National Development and Reform Commission Announcement No. 23 of 2020), 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 60% of its gross income in the current year, is entitled to a reduced corporate income tax rate
of 15%. Chengdu Konka Electronic, a subsidiary of the Company, is eligible for this preferential
tax policy.
(11) 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, Electronics Technology and Anhui
Tongchuang all enjoy this preferential policy.
120
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 period-begin refers to 1 January
2024, the period-end refers to 30 June 2024, this period refers to the period from 1 January
2024 to 30 June 2024 and the previous period refers to the period from 1 January 2023 to 30
June 2023. The monetary unit is renminbi.
1. Monetary assets
Item Closing balance Opening balance
Cash on hand 469.28
Bank deposits 4,599,678,470.84 5,892,986,243.07
Other monetary assets 914,692,108.59 613,372,864.67
Total 5,514,370,579.43 6,506,359,577.02
Of which: Total amount deposited overseas 64,430,289.51 55,324,772.13
Note: The closing balance of other monetary funds is mainly the balance of time deposits, margin
deposits and account balance on WeChat, Alipay and other platforms. For details of restricted
funds, please refer to Note VI-23 Assets with restricted ownership or use right.
2. Held-for-trading financial assets
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 294,937,209.31 469,636,700.78
Including: Investment in equity instruments 294,937,209.31 469,636,700.78
Total 294,937,209.31 469,636,700.78
3. Notes receivable
（1） Classified presentation of notes receivable
Item Closing balance Opening balance
Banker's acceptance 285,785,824.21 517,759,367.29
Commercial acceptance draft 16,201,812.90 15,412,581.86
Total 301,987,637.11 533,171,949.15
（2） Listed by withdrawal methods for provision for bad debts
121
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the
single item
Provision set aside for
302,325,037.03 100.00 337,399.92 0.11 301,987,637.11
bad debts by portfolio
Of which: Banker's
285,785,824.21 94.53 285,785,824.21
acceptance
Commercial
16,539,212.82 5.47 337,399.92 2.04 16,201,812.90
acceptance draft
Total 302,325,037.03 100.00 337,399.92 0.11 301,987,637.11
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the
single item
Provision set aside for
533,492,913.47 100.00 320,964.32 0.06 533,171,949.15
bad debts by portfolio
Of which: Banker's
517,759,367.29 97.05 517,759,367.29
acceptance
Commercial
15,733,546.18 2.95 320,964.32 2.04 15,412,581.86
acceptance draft
Total 533,492,913.47 100.00 320,964.32 0.06 533,171,949.15
Provision for expected credit losses on commercial acceptance draft based on aging in the
portfolio
Closing balance
Name
Provision
Book balance Provision for bad debts
percentage (%)
Within one year 16,539,212.82 337,399.92 2.04
122
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance
Name
Provision
Book balance Provision for bad debts
percentage (%)
Total 16,539,212.82 337,399.92 2.04
（3） Provision for bad debts of notes receivable set aside, recovered or reclassified in
the Reporting Period
Change in the current year
Opening Closing
Category Charge-
balance Recovery or balance
Provision off or Others
reclassification
write-off
Commercial
320,964.32 29,365.33 12,929.73 337,399.92
acceptance draft
Banker's
acceptance
Total 320,964.32 29,365.33 12,929.73 337,399.92
（4） Notes receivable pledged at the end of the period
Item Amount pledged at the end of the period
Banker's acceptance 135,131,288.11
Commercial acceptance draft
Total 135,131,288.11
（5） Notes receivable endorsed or discounted but had not yet matured on the balance
sheet date at the end of the period
Amount derecognised at the end Amount not derecognised at the
Item
of the period end of the period
Banker's acceptance 1,263,789,633.51
Commercial acceptance draft 13,712,030.20
Total 1,263,789,633.51 13,712,030.20
（6） Notes receivable actually written off in the current period
There were no significant write-offs of notes receivable in the current period.
4. Accounts receivable
（1） Accounts receivable listed by aging portfolio
123
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Book balance at the period-
Aging Book balance at the period-end
begin
Within one year (inclusive) 1,398,638,104.01 1,489,573,102.24
One to two years 347,323,499.85 152,217,296.67
Two to three years 181,933,992.96 131,889,796.60
Three to four years 232,579,903.76 265,897,663.73
Four to five years 286,691,759.72 674,517,508.86
Over five years 1,028,121,298.28 894,028,569.23
Total 3,475,288,558.58 3,608,123,937.33
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
1,395,605,627.86 40.16 1,266,377,364.82 90.74 129,228,263.04
debts by the
single item
Provision set
aside for bad
debts by
portfolio
Of which:
2,079,682,930.72 59.84 351,949,753.53 16.92 1,727,733,177.19
Aging portfolio
Subtotal of
2,079,682,930.72 59.84 351,949,753.53 16.92 1,727,733,177.19
portfolio
Total 3,475,288,558.58 100.00 1,618,327,118.35 46.57 1,856,961,440.23
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
1,601,967,285.04 44.40 1,524,090,371.01 95.14 77,876,914.03
debts by the
single item
124
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set
aside for bad
debts by
portfolio
Of which:
2,006,156,652.29 55.60 357,487,593.24 17.82 1,648,669,059.05
Aging portfolio
Subtotal of
2,006,156,652.29 55.60 357,487,593.24 17.82 1,648,669,059.05
portfolio
Total 3,608,123,937.33 100.00 1,881,577,964.25 52.15 1,726,545,973.08
1） Provision set aside for bad debts of accounts receivable by single item
Opening balance Closing balance
Name Provision Reasons
Provision for Provision for
Book balance Book balance percentage for the
bad debts bad debts
(%) provision
Shanghai
Expected
Huaxin
to be
International 299,136,676.70 293,153,943.17 298,855,950.30 292,878,831.29 98.00
difficult to
Group Co.,
recover
Ltd.
Hongtu
Expected
Sanbao High-
to be
tech 200,000,000.00 180,000,000.00 200,000,000.00 180,000,000.00 90.00
difficult to
Technology
recover
Co., Ltd.
Shenzhen Not
Yaode expected to
145,562,210.29 145,562,210.29 146,468,551.71 146,468,551.71 100.00
Technology be
Co., Ltd. recoverable
Guangan
Expected
Ouqishi
to be
Electronic 113,140,553.53 110,965,942.46 113,140,553.53 110,965,942.46 98.08
difficult to
Technology
recover
Co., Ltd.
Zhongfu
Expected
Tiangong
to be
Construction 71,389,096.65 53,541,822.49 71,289,096.65 53,466,822.49 75.00
difficult to
Group Co.,
Ltd. recover
Gome
Customization Not
59,569,295.02 59,569,295.02 57,021,975.73 57,021,975.73 100.00 expected to
(Tianjin)
Home be
125
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Opening balance Closing balance
Name Provision Reasons
Provision for Provision for
Book balance Book balance percentage for the
bad debts bad debts
(%) provision
Appliances recoverable
Co., Ltd.
CCCC First Not
Harbor expected to
55,438,105.00 55,438,105.00 65,221,300.00 65,221,300.00 100.00
Engineering be
Company Ltd. recoverable
Not
Xingda
expected to
Hongye (Hk) 51,902,301.95 51,902,301.95 51,902,301.95 51,902,301.95 100.00
be
Limited
recoverable
Dongguan
High Energy Expected
to be
Polymer 50,699,037.70 32,893,535.66 50,699,037.70 32,893,535.66 64.88
difficult to
Materials Co.,
recover
Ltd.
Not
China Energy
expected to
Electric Fuel 50,000,000.00 50,000,000.00 49,993,564.16 49,993,564.16 100.00
be
Co., Ltd.
recoverable
Expected
to be
Others 505,130,008.20 491,063,214.97 291,013,296.13 225,564,539.37 77.51
difficult to
recover
Total 1,601,967,285.04 1,524,090,371.01 1,395,605,627.86 1,266,377,364.82
2） Provision set aside for bad debts of accounts receivable by portfolio
Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)
Within one year 1,336,869,720.64 27,272,142.13 2.04
One to two years 327,253,283.46 32,790,779.07 10.02
Two to three years 111,580,526.11 25,317,621.37 22.69
Three to four years 106,521,040.82 69,110,851.27 64.88
Four to five years 16,541,028.26 16,541,028.26 100.00
Over five years 180,917,331.43 180,917,331.43 100.00
Total 2,079,682,930.72 351,949,753.53 16.92
（3） Provision for bad debts of accounts receivable set aside, recovered or reclassified
126
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
in the current period
Change in the current year
Category Opening balance
Recovery or
Provision
reclassification
Provision for bad debts
1,881,577,964.25 50,338,166.41 24,347,173.17
of accounts receivable
Total 1,881,577,964.25 50,338,166.41 24,347,173.17
(Continued)
Change in the current year
Category Closing balance
Decrease for other
Charge-off or write-off
reasons
Provision for bad debts
289,241,839.14 1,618,327,118.35
of accounts receivable
Total 289,241,839.14 1,618,327,118.35
Note: Decreases for other reasons were RMB-1,805,743.22 due to exchange rate changes and the
decrease by RMB291,047,582.36 due to the loss of controlling right.
（4） Accounts receivable actually written off in the current period
There are no actually written-off accounts receivable in this period.
（5） Top five accounts receivable and contract assets in the closing balance
categorised by debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the
current period was RMB1,446,160,600.23, accounting for 41.61% of the total closing balance of
accounts receivable. The total closing balance of provision for bad debts correspondingly set aside
was RMB656,491,796.91.
5. Contract assets
（1） Contract assets
Closing balance Opening balance
Item Provision Provision
Book Carrying
Book balance for bad Carrying value for bad
balance value
debts debts
Accounts
receivable for
settled items 2,769,083.68 56,489.31 2,712,594.37 2,236,000.34 45,614.41 2,190,385.93
that are not
unconditionally
127
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Item Provision Provision
Book Carrying
Book balance for bad Carrying value for bad
balance value
debts debts
paid
Total 2,769,083.68 56,489.31 2,712,594.37 2,236,000.34 45,614.41 2,190,385.93
（2） Classified presentation of contract assets by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Carrying
Proportion Provision value
Amount Amount
(%) percentage (%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging
2,769,083.68 100.00 56,489.31 2.04 2,712,594.37
portfolio
Subtotal of portfolio 2,769,083.68 100.00 56,489.31 2.04 2,712,594.37
Total 2,769,083.68 100.00 56,489.31 2.04 2,712,594.37
Opening balance
Book balance Provision for bad debts
Category
Carrying
Proportion Provision value
Amount Amount
(%) percentage (%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging
2,236,000.34 100.00 45,614.41 2.04 2,190,385.93
portfolio
Subtotal of portfolio 2,236,000.34 100.00 45,614.41 2.04 2,190,385.93
Total 2,236,000.34 100.00 45,614.41 2.04 2,190,385.93
（3） Provision set aside for bad debts of contract assets by portfolio
Aging Closing balance
128
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Provision
Book balance Provision for bad debts
percentage (%)
Within one year 2,769,083.68 56,489.31 2.04
Total 2,769,083.68 56,489.31 2.04
（4） Provision for bad debts of contract assets set aside, recovered or reclassified in
the current period
Recovery or Charge-off/Write-
Provision in the
Item reclassification in off in the current Reasons
current period
the current period period
Accounts receivable
for settled items that
10,874.90 Normal provision
are not
unconditionally paid
Total 10,874.90
（5） Contract assets actually written off in the current period
There were no contract assets actually written off in the current period.
6. Accounts receivable financing
Item Closing balance Opening balance
Notes receivable 203,279,738.30 173,396,326.14
Total 203,279,738.30 173,396,326.14
7. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 7,770,148.68 6,681,258.01
Dividends receivable 14,705,644.62 941,482.38
Other accounts receivable 807,052,840.99 981,498,327.12
Total 829,528,634.29 989,121,067.51
7.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 7,770,148.68 6,681,258.01
Total 7,770,148.68 6,681,258.01
7.2 Dividends receivable
（1） Category of dividends receivable
129
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item (or investee) Closing balance Opening balance
Shenzhen Jielunte Technology Co.,
941,482.38
Ltd.
Chutian Dragon Co., Ltd. 4,240,444.62
Wuhan Tianyuan Environmental
10,465,200.00
Protection Co., Ltd.
Total 14,705,644.62 941,482.38
7.3 Other receivables
（1） Other receivables classified by account nature
Book balance at the end of the Book balance at the beginning
Nature of fund
period of the period
Deposit and margin 344,926,113.50 1,234,840,210.69
Intercourse funds among minority
shareholders in the business consolidation
181,205,407.34 179,663,586.05
not under the same control and related
parties
Energy-saving subsidies receivable 152,399,342.00 152,399,342.00
Others 2,961,254,595.30 1,496,129,924.02
Total 3,639,785,458.14 3,063,033,062.76
（2） Other receivables listed by aging
Book balance at the end of the Book balance at the beginning
Aging
period of the period
Within one year 69,465,860.34 253,550,068.51
One to two years 84,541,478.76 77,519,916.42
Two to three years 365,391,923.70 551,521,166.18
Three to four years 835,835,984.39 690,507,047.29
Four to five years 534,137,348.24 1,092,957,617.71
Over five years 1,750,412,862.71 396,977,246.65
Total 3,639,785,458.14 3,063,033,062.76
（3） Classified presentation of other receivables by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
130
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Other receivables
of expected credit
2,540,492,875.97 69.80 2,241,666,571.98 88.24 298,826,303.99
losses set aside by
single item
Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
portfolio:
Of which: Aging
961,885,583.89 26.42 560,823,547.39 58.30 401,062,036.50
portfolio
Low-risk portfolio 137,406,998.28 3.78 30,242,497.78 22.01 107,164,500.50
Subtotal of
1,099,292,582.17 30.20 591,066,045.17 53.77 508,226,537.00
portfolio
Total 3,639,785,458.14 100.00 2,832,732,617.15 77.83 807,052,840.99
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Other receivables
of expected credit
1,960,682,465.29 64.01 1,644,122,039.53 83.85 316,560,425.76
losses set aside by
single item
Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
portfolio:
Of which: Aging
975,322,848.99 31.84 413,933,906.39 42.44 561,388,942.60
portfolio
Low-risk portfolio 127,027,748.48 4.15 23,478,789.72 18.48 103,548,958.76
Subtotal of
1,102,350,597.47 35.99 437,412,696.11 39.68 664,937,901.36
portfolio
Total 3,063,033,062.76 100.00 2,081,534,735.64 67.96 981,498,327.12
131
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
1） Provision set aside for bad debts of other receivables by portfolio
Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)
Within one year 54,240,251.77 837,915.76 1.54
One to two years 56,548,914.22 2,984,352.63 5.28
Two to three years 260,548,432.36 54,329,136.75 20.85
Three to four years 535,245,817.07 343,779,819.69 64.23
Four to five years 58,706,234.60 55,131,888.19 93.91
Over five years 134,002,932.15 134,002,932.15 100.00
Total 1,099,292,582.17 591,066,045.17 53.77
2） Provision set aside for bad debts of other receivables by the general expected credit
loss model
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected Total
debts during the whole during the whole
credit loss for
outstanding outstanding
the next 12
maturity (without maturity (with
months
credit impairment) credit impairment)
Balance as of 1
1,443,228.60 435,969,467.51 1,644,122,039.53 2,081,534,735.64
January 2024
Balance as of 1
January 2024 in the -756,286.95 740,212.80 16,074.15
current period
-- Transferred to
-756,286.95 756,286.95
Phase II
-- Transferred to
-16,074.15 16,074.15
Phase III
-- Reclassified under
Phase II
-- Reclassified under
Phase I
Provision in the
153,571,711.07 1,541,821.29 155,113,532.36
current period
Recovery in the
1,119,050.04 -44,896.70 16,967,374.68 18,041,528.02
current period
132
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Phase I Phase II Phase III
Provision for bad Expected credit loss Expected credit loss
Expected Total
debts during the whole during the whole
credit loss for
outstanding outstanding
the next 12
maturity (without maturity (with
months
credit impairment) credit impairment)
Charge-off in the
current period
Write-off in the
current period
Other changes 1,270,024.15 -98,158.67 612,954,011.69 614,125,877.17
Balance as at 30 June
837,915.76 590,228,129.41 2,241,666,571.98 2,832,732,617.15
2024
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 one 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 one 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.
（4） Provision for bad debts of other receivables set aside, recovered or reclassified in
the current period
Change in the current period
Categ Opening Char
ge-off Closing balance
ory balance Recovery or
Provision or Others
reclassification
write-
off
Provis
ion for
bad
debts
2,081,534,735.64 155,113,532.36 18,041,528.02 -614,125,877.17 2,832,732,617.15
of
other
receiv
ables
Total 2,081,534,735.64 155,113,532.36 18,041,528.02 -614,125,877.17 2,832,732,617.15
Note: Decreases for other reasons were RMB-1,330,923.76 due to exchange rate changes and the
decrease by RMB612,794,944.33 due to the loss of controlling right.
133
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
（5） Other receivables actually written off in the current period
There were no other receivables actually written off for the Reporting Period.
（6） Top five other accounts receivable in the closing balance categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the
current year was RMB2,986,256,781.60, accounting for 82.04% of the total closing balance of
other receivables. The total closing balance of provision for bad debts correspondingly set aside
was RMB2,370,741,736.67.
8. Prepayments
（1） Age of prepayments
Closing balance Opening balance
Item
Amount Proportion (%) Amount Proportion (%)
Within one year 85,269,826.19 61.25 114,332,392.60 69.10
One to two years 10,668,862.35 7.66 827,985.04 0.50
Two to three years 41,876,819.11 30.08 46,545,996.66 28.13
Over three years 1,403,791.35 1.01 3,747,937.21 2.27
Total 139,219,299.00 100.00 165,454,311.51 100.00
Note: The amount of advanced payments aged over one year at the end of the period is
RMB53,949,472.81, accounting for 38.75% of the total balance of advanced payments of the
Company, and consists mainly of unavailability of funds or unsettled payments.
（2） Top five prepayments in the closing balance categorised by payees
The total amount of prepayments with top five closing balance categorised by payees was
RMB102,365,394.64, accounting for 73.53% of the total closing balance of prepayments.
9. Inventory
（1） Inventory classification
Closing balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 732,595,142.46 75,967,089.52 656,628,052.94
134
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Semi-finished products 101,913,886.80 46,991,125.84 54,922,760.96
Commodities in stock 2,656,510,493.28 465,581,487.44 2,190,929,005.84
Commissioned products 2,218,974.86 212,731.64 2,006,243.22
Development costs 500,050,965.12 500,050,965.12
Total 3,993,289,462.52 588,752,434.44 3,404,537,028.08
(Continued)
Opening balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 593,131,602.70 86,829,664.81 506,301,937.89
Semi-finished products 96,408,258.96 41,741,196.19 54,667,062.77
Commodities in stock 2,636,678,840.40 490,032,803.73 2,146,646,036.67
Commissioned products 1,934,264.95 211,225.91 1,723,039.04
Development costs 540,559,624.61 540,559,624.61
Total 3,868,712,591.62 618,814,890.64 3,249,897,700.98
（2） Inventory falling price reserves and impairment provision of contract
performance costs
Increase in the current year
Item Opening balance
Withdrawal Others
Raw materials 86,829,664.81 13,078,363.92
Semi-finished products 41,741,196.19 9,074,809.14
Commodities in stock 490,032,803.73 58,956,623.28
Commissioned products 211,225.91
Total 618,814,890.64 81,109,796.34
135
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(Continued)
Decrease in the current year
Item Closing balance
Write-off Others
Raw materials 23,902,301.61 38,637.60 75,967,089.52
Semi-finished products 3,824,879.49 46,991,125.84
Commodities in stock 82,450,133.39 957,806.18 465,581,487.44
Commissioned products -1,505.73 212,731.64
Total 110,177,314.49 994,938.05 588,752,434.44
Specific basis for determining the realisable 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:
Reasons for charge-off of provision
Specific basis for withdrawal of
Item for inventories impairment in the
inventory falling price reserves
current year
The realisable net value was lower than They have been sold or used in the
Raw materials
the carrying value current period
The realisable net value was lower than They have been sold or used in the
Semi-finished products
the carrying value current period
The realisable net value was lower than They have been sold in the current
Commodities in stock
the carrying value period
10. Other current assets
Item Closing balance Opening balance
Principal and interests of entrusted loans to
1,789,416,914.11 1,744,123,316.97
associated enterprises
Prepayments and deductible taxes, and
525,792,569.13 569,875,346.61
refund of tax for export receivable
Deferred expenses 31,816,213.30 28,112,001.12
Costs receivable for returning goods 14,031,714.93 15,925,346.67
Others 757,591.13 1,123,457.38
Total 2,361,815,002.60 2,359,159,468.75
136
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
13. Long-term equity investment
Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Konka Ventures Development (Shenzhen)
5,004,579.62 109,011.09
Co., Ltd.
Nanjing Zhihuiguang Information
2,019,287.36 22,211.40
Technology Research Institute Co., Ltd.
Feidi Technology (Shenzhen) Co., Ltd. 10,706,907.72 3,224,155.07
Shenzhen Kangyue Enterprise Co., Ltd.
Foshan Zhujiang Media Creative Park
Cultural Development Co., Ltd.
Kangkai Technology Service (Chengdu)
114,193.79 10,500.00
Co., Ltd.
Puchuang Jiakang Technology Co, Ltd. 2,716,274.71 462,390.15
Shenzhen Jielunte Technology Co., Ltd. 94,917,575.00 -6,341,750.17
Panxu Intelligence Co., Ltd. 48,686,477.11 -1,154,019.69
Orient Excellent (Zhuhai) Asset
8,198,574.99 429,295.82
Management Co., Ltd.
Dongfang Jiakang No.1 (Zhuhai) Private
338,089,300.42 1,768,886.32 906,768.44
Equity Investment Fund (LP)
137
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Tongxiang Wuzhen Kunyu Venture Capital
3,524,037.08 1,940.11
Investment Co., Ltd.
Shenzhen RF-Llink Technology Co., Ltd.
Anhui Kaikai Shijie E-commerce Co., Ltd. 418,814,414.98 -5,828,645.96
Kunshan Kangsheng Investment
207,333,483.86 -3,336,356.30
Development Co., Ltd.
Shanxi Silk Road Cloud Intelligent Tech
5,187,588.48 -669,600.90
Co., Ltd.
Shenzhen Kanghongxing Intelligent
Technology Co., Ltd.
Shenzhen Zhongkang Beidou Technology
Co., Ltd. (formerly named: Shenzhen
Zhongbing Konka Technology Co., Ltd.)
Shenzhen Yaode Technology Co., Ltd.
Wuhan Tianyuan Environmental Protection
512,729,351.11 17,245,673.07
Co., Ltd.
Chuzhou Konka Technology Industry
39,335,548.57 -4,638,032.20
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
239,037,618.98 -3,469,664.26
Development Co., Ltd.
138
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Nantong Kangjian Technology Industrial
107,310,029.86
Park Operations and Management Co., Ltd.
Chuzhou Kangxin Health Industry
180,752,809.79 -1,100,714.21
Development Co., Ltd.
Dongguan Guankang Yuhong Investment
501,408,938.92 -13,062,060.07
Co., Ltd.
Shenzhen Morsemi Semiconductor
Technology Co., Ltd.
Shandong Econ Technology Co., Ltd. 1,130,575,773.36
Dongguan Kangjia New Materials
6,857,694.77 2,886.15
Technology Co., Ltd..
Chongqing E2info Technology Co., Ltd. 1,048,983,188.06 10,939,004.61
Yantai Kangyun Industrial Development
65,884,386.16 -2,727,492.22
Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 30,715,678.97
Shenzhen Kangjia Jiapin Intelligent
7,090,590.47 -480,528.54
Electrical Apparatus Technology Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 85,057,438.63 1,799,918.18
Chongqing Yuanlv Benpao Real Estate 28,089,915.82 -1,351,812.31
139
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Co., Ltd.
Shenzhen Kangpeng Digital Technology
1,770,021.01 -345,320.82
Co., Ltd.
Yantai Kangtang Construction
862,394.07 87,749.85
Development Co., Ltd.
Dongguan Konka Smart Electronic
24,124,143.70 -3,070,775.78
Technology Co., Ltd.
Shenzhen Aimijiakang Technology Co.,
1,173,870.57 -98,033.64
Ltd.
Beijing Konka Jingyuan Technology Co.,
703,703.42
Ltd.
Chongqing Liangshan Enterprise
178,368.53 9,427.45
Management Co., Ltd.
Shenzhen Kangxi Technology Innovation
1,026,306.07 6,387.02
Development Co., Ltd.
Shandong Kangfei Intelligent Electrical
245,911.63
Appliances Co., Ltd.
Henan Kangfei Intelligent Electric
1,939,694.34 -18,408.41
Appliance Co., Ltd.
Guangdong Kangyuan Semiconductor Co.,
9,957,207.04 -1,776,663.77
Ltd.
140
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Chongqing Kangyiqing Technology Co.,
633,719.09 -300,000.00
Ltd.
Zhejiang Kangying Semiconductor
Technology Co., Ltd. (formally: Shenzhen
19,339,655.22 -1,145,348.00 -84,875.89
Kangying Semiconductor Technology Co.,
Ltd.)
KK Smartech Limited 1,612,150.56 -8,552.93
Chongqing Kangjian Photoelectric
8,329,131.78 -2,160,000.00
Technology Co., Ltd.
Anhui Kangta Supply Chain
17,256,599.85 -236,863.48
Management Co., Ltd.
Wuhan Kangtang Information Technology
25,757,222.60 -848,227.42
Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 31,708,992.07 -3,935,564.36
Konka Industrial Development (Wuhan)
42,134,231.89 -1,425,590.64
Co., Ltd.
Hefei KONSEMI Storage Technology Co.,
188,654,285.66 -12,222,171.62 956.66
Ltd.
Xi'an Kang'an Intelligent Storage
6,000,000.00 -183,110.10
Technology Co., Ltd.
Sichuan Hongxinchen Real Estate 53,934,595.60
141
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Profit or loss of Changes in other
Increase in the Decrease in the Cost method to equity
investment recognised comprehensive
investment investment method
by the equity method income
Development Co., Ltd.
Konka Huanjia Environmental Technology
Co., Ltd.
Total 5,566,483,863.29 1,768,886.32 -36,677,989.39 -83,919.23
(Continued)
Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Konka Ventures Development
55,392.38 5,058,198.33
(Shenzhen) Co., Ltd.
Nanjing Zhihuiguang Information
17,358.62 2,024,140.14
Technology Research Institute Co., Ltd.
Feidi Technology (Shenzhen) Co., Ltd. 13,931,062.79
Shenzhen Kangyue Enterprise Co., Ltd. 24,977,328.88
Foshan Zhujiang Media Creative Park
Cultural Development Co., Ltd.
Kangkai Technology Service (Chengdu)
124,693.79
Co., Ltd.
Puchuang Jiakang Technology Co, Ltd. 3,178,664.86
142
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Shenzhen Jielunte Technology Co., Ltd. 88,575,824.83
Panxu Intelligence Co., Ltd. 47,532,457.42
Orient Excellent (Zhuhai) Asset
8,627,870.81
Management Co., Ltd.
Dongfang Jiakang No.1 (Zhuhai) Private
730,916.13 336,496,266.41
Equity Investment Fund (LP)
Tongxiang Wuzhen Kunyu Venture
3,525,977.19
Capital Investment Co., Ltd.
Shenzhen RF-Llink Technology Co., Ltd. 85,656,027.35
Anhui Kaikai Shijie E-commerce Co.,
412,985,769.02
Ltd.
Kunshan Kangsheng Investment
7,350,000.00 196,647,127.56
Development Co., Ltd.
Shanxi Silk Road Cloud Intelligent Tech
4,517,987.58
Co., Ltd.
Shenzhen Kanghongxing Intelligent
12,660,222.73
Technology Co., Ltd.
Shenzhen Zhongkang Beidou
Technology Co., Ltd. (formerly named:
Shenzhen Zhongbing Konka Technology
Co., Ltd.)
143
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Wuhan Tianyuan Environmental
-11,288,034.03 10,465,200.00 508,221,790.15
Protection Co., Ltd.
Chuzhou Konka Technology Industry
34,697,516.37
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
235,567,954.72
Development Co., Ltd.
Nantong Kangjian Technology Industrial
Park Operations and Management Co., 107,310,029.86
Ltd.
Chuzhou Kangxin Health Industry
179,652,095.58
Development Co., Ltd.
Dongguan Guankang Yuhong Investment
488,346,878.85
Co., Ltd.
Shenzhen Morsemi Semiconductor
Technology Co., Ltd.
Shandong Econ Technology Co., Ltd. 1,130,575,773.36 81,806,510.02
Dongguan Kangjia New Materials
6,860,580.92
Technology Co., Ltd.
Chongqing E2info Technology Co., Ltd. 1,059,922,192.67
144
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Yantai Kangyun Industrial Development
63,156,893.94
Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 4,000,000.00 26,715,678.97
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co., 6,610,061.93
Ltd.
Shenzhen KONKA E-display Co., Ltd. 86,857,356.81
Chongqing Yuanlv Benpao Real Estate
26,738,103.51
Co., Ltd.
Shenzhen Kangpeng Digital Technology
1,424,700.19
Co., Ltd.
Yantai Kangtang Construction
950,143.92
Development Co., Ltd.
Dongguan Konka Smart Electronic
21,053,367.92
Technology Co., Ltd.
Shenzhen Aimijiakang Technology Co.,
1,075,836.93
Ltd.
Beijing Konka Jingyuan Technology Co.,
703,703.42
Ltd.
Chongqing Liangshan Enterprise
187,795.98
Management Co., Ltd.
145
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Shenzhen Kangxi Technology Innovation
1,032,693.09
Development Co., Ltd.
Shandong Kangfei Intelligent Electrical
245,911.63 245,911.63
Appliances Co., Ltd.
Henan Kangfei Intelligent Electric
1,921,285.93
Appliance Co., Ltd.
Guangdong Kangyuan Semiconductor
8,180,543.27
Co., Ltd.
Chongqing Kangyiqing Technology Co.,
333,719.09
Ltd.
Zhejiang Kangying Semiconductor
Technology Co., Ltd. (formally:
18,109,431.33
Shenzhen Kangying Semiconductor
Technology Co., Ltd.)
KK Smartech Limited 1,603,597.63
Chongqing Kangjian Photoelectric
6,169,131.78
Technology Co., Ltd.
Anhui Kangta Supply Chain
17,019,736.37
Management Co., Ltd.
Wuhan Kangtang Information
24,908,995.18
Technology Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 27,773,427.71
146
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Cash dividends or Closing balance the provision for
Changes in other Provision set aside
profits declared to Others impairment
equities for impairment
be distributed
Konka Industrial Development (Wuhan)
40,708,641.25
Co., Ltd.
Hefei KONSEMI Storage Technology
6,498,827.39 182,931,898.09
Co., Ltd.
Xi'an Kang'an Intelligent Storage
5,816,889.90
Technology Co., Ltd.
Sichuan Hongxinchen Real Estate
53,934,595.60
Development Co., Ltd.
Konka Huanjia Environmental
91,800,000.00
Technology Co., Ltd.
Total -4,789,206.64 22,618,867.13 245,911.63 5,500,299,082.95 511,705,469.96
147
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
12. Other equity instrument investments
12.1 Other equity instrument investments
Item Closing balance Opening balance
Shenzhen Tianyilian Science & Technology Co.,
Ltd.
Beijing Huyu Digital Technology Co., Ltd. 5,901,121.80 5,901,121.80
Feihong Electronics Co., Ltd.
ZAEFI
Shenzhen Chuangce Investment Development
Co., Ltd.
Shanlian Information Technology Engineering
1,860,809.20 1,860,809.20
Centre
Shenzhen CIU Science & Technology Co., Ltd. 953,000.00 953,000.00
Shenzhen Digital TV National Engineering
7,726,405.16 7,726,405.16
Laboratory Co., Ltd.
Shanghai National Engineering Research Centre
2,400,000.00 2,400,000.00
of Digital TV Co., Ltd.
BOHUA UHD 5,000,001.00 5,000,001.00
Total 23,841,337.16 23,841,337.16
148
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
12.2 Investments in non-trading equity instruments in the current period
Dividend
Amount of other Reason for assigning to Reason for other
income
Accumulative Accumulative comprehensive measure in fair value of comprehensive
Item recognised in
gains losses income transferred to which changes included income transferred
the current
retained earnings other comprehensive income to retained earnings
period
Shenzhen Tianyilian Science & Technology Co., Long-term holding based on
4,800,000.00
Ltd. strategic purpose
Long-term holding based on
Beijing Huyu Digital Technology Co., Ltd. 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 Development Co., Long-term holding based on
485,000.00
Ltd. strategic purpose
Shanlian Information Technology Engineering Long-term holding based on
3,139,190.80
Centre strategic purpose
Long-term holding based on
Shenzhen CIU Science & Technology Co., Ltd. 200,000.00
strategic purpose
Shenzhen Digital TV National Engineering Long-term holding based on
1,273,594.84
Laboratory Co., Ltd. strategic purpose
Shanghai National Engineering Research Centre of Long-term holding based on
Digital TV Co., Ltd. strategic purpose
BOHUA UHD Long-term holding based on
149
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Dividend
Amount of other Reason for assigning to Reason for other
income
Accumulative Accumulative comprehensive measure in fair value of comprehensive
Item recognised in
gains losses income transferred to which changes included income transferred
the current
retained earnings other comprehensive income to retained earnings
period
strategic purpose
Total 11,396,663.84
150
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
13. Other non-current financial assets
Item Closing balance Opening balance
China Asset Management-Jiayi Overseas Designated Plan 200,732,067.00 200,732,067.00
Tianjin Huacheng Property Development Co., Ltd. 1,000,000.00 1,000,000.00
Tianjin Property No. 8 Enterprise Management Partnership (Limited Partnership) 28,540,777.26 28,540,777.26
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 66,080,293.70 66,080,293.70
Daye Trust Co., Ltd. 100,000,000.00 100,000,000.00
Yibin OCT Sanjiang Properties Co., Ltd. 199,774,696.09 199,774,696.09
Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership (Limited Partnership) 230,264,035.04 231,190,200.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment Partnership (Limited Partnership) 198,129,473.88 201,451,000.00
Yibin Kanghui Electronic Information Industry Equity Investment Partnership (Limited Partnership) 60,292,296.39 60,292,000.00
Chuzhou Jiachen Information Technology Consulting Service Partnership (Limited Partnership) 59,700,013.59 59,700,013.59
Yancheng Kangyan Information Industry Investment Partnership (Limited Partnership) 140,082,317.80 162,937,428.56
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited Partnership) 155,692,673.16 155,691,200.00
Shenzhen Kanghuijia Technology Co., Ltd. 7,684.53 7,684.53
Subtotal of equity investments 1,440,296,328.44 1,467,397,360.73
Ningbo Yuanqing No. 9 Investment Partnership 148,855,198.11 148,855,198.11
151
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Shenzhen Beihu Technology Partnership (Limited Partnership) 59,735,232.88 59,735,232.88
Shanxi Kangmengrong Enterprise Management Consulting Partnership (Limited Partnership) 8,520,728.55 9,163,411.30
Nanjing Kangfeng Dejia Asset Management Partnership (Limited Partnership) 100,000,000.00 100,000,000.00
Shenzhen Gaohong Enterprise Consulting Management Partnership (Limited Partnership) 114,815,791.63 109,739,999.99
Shenzhen Zitang No.1 Enterprise Consulting Management Partnership (Limited Partnership) 99,000,000.00 99,000,000.00
Xi'an Bihuijia Enterprise Management Consulting Partnership (Limited Partnership) 14,685,194.12 15,785,194.99
Subtotal of debt investments 545,612,145.29 542,279,037.27
Total 1,985,908,473.73 2,009,676,398.00
14. Investment property
（1） Investment properties measured at cost
Item Land use right Properties and buildings Total
I. Original carrying value
1. Opening balance 91,837,689.30 1,558,110,727.67 1,649,948,416.97
2. Increase in the current period 10,542,998.55 62,056,444.27 72,599,442.82
(1) External purchase
(2) Fixed assets\construction in progress\transfer of
10,542,998.55 62,056,444.27 72,599,442.82
intangible assets
152
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Land use right Properties and buildings Total
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Closing balance 102,380,687.85 1,620,167,171.94 1,722,547,859.79
II. The accumulative depreciation and accumulative
amortisation
1. Opening balance 21,541,632.80 158,180,060.30 179,721,693.10
2. Increase in the current period 1,366,075.68 24,522,087.58 25,888,163.26
(1) Provision or amortisation 1,366,075.68 24,522,087.58 25,888,163.26
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Closing balance 22,907,708.48 182,702,147.88 205,609,856.36
III. Provision for impairment
1. Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
153
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Land use right Properties and buildings Total
(1) Disposal
(2) Other transfer out
4. Closing balance
IV. Carrying value
1. Closing carrying value 79,472,979.37 1,437,465,024.06 1,516,938,003.43
2. Opening carrying value 70,296,056.50 1,399,930,667.37 1,470,226,723.87
（2） Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the Reporting Period.
（3） Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
（4） Investment properties in the process of title certificate handling
Item Carrying value Reason that the certificate of title was not completed
In the process of project closure, project closure will not
Konka Standard Electronic Product Plants Project in Suining 375,714,645.70
be processed until the project is completed.
Total 375,714,645.70
（5） Investment properties with restricted ownership or use rights
Item Closing carrying value Reasons for the restriction
154
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing carrying value Reasons for the restriction
Konka Guangming Technology Centre 572,516,043.72 Mortgage loan
Houses and buildings of Shaanxi Konka 70,800,534.86 Mortgage loan
Total 643,316,578.58
15. Fixed assets
Item Closing carrying value Opening carrying value
Fixed assets 5,017,976,577.28 5,218,297,745.16
Liquidation of fixed assets 32,448,750.14
Total 5,050,425,327.42 5,218,297,745.16
15.1 Fixed Assets
（1） Fixed assets
Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
I. Original carrying value
1. Opening balance 4,064,218,816.99 3,320,880,784.80 302,188,512.88 55,935,781.31 189,243,639.88 7,932,467,535.86
2. Increased amount of the
3,197,639.47 92,432,260.80 2,212,968.25 385,233.45 1,303,855.17 99,531,957.14
period
(1) Purchase 3,197,639.47 14,508,655.11 2,114,251.41 385,233.45 1,303,855.17 21,509,634.61
155
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
(2) Transfer-in of
77,710,101.27 17,787.61 77,727,888.88
construction in progress
(3) Increase through
consolidation
(4) Other transfer-in 213,504.42 80,929.23 294,433.65
3. Decreased amount of the
112,806,344.20 12,878,085.53 5,765,117.33 1,359,998.05 886,178.86 133,695,723.97
period
(1) Disposal or write-off 51,084,326.98 11,934,642.83 5,250,024.44 1,359,998.05 819,642.86 70,448,635.16
(2) Decrease for loss of
302,363.06 515,092.89 2,876.10 820,332.05
controlling right
(3) Other decreases 61,722,017.22 641,079.64 63,659.90 62,426,756.76
4. Ending balance 3,954,610,112.26 3,400,434,960.07 298,636,363.80 54,961,016.71 189,661,316.19 7,898,303,769.03
II. Accumulated depreciation
1. Opening balance 740,844,429.80 1,465,754,243.66 200,150,283.49 42,094,186.82 125,133,960.40 2,573,977,104.17
2. Increased amount of the
57,920,184.65 124,779,559.01 14,586,543.16 2,151,073.91 7,201,870.28 206,639,231.01
period
(1) Provision 57,101,166.26 124,779,559.01 12,656,846.89 2,151,073.91 7,201,870.28 203,890,516.35
(2) Increase through
consolidation
156
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
(3) Other increase 819,018.39 1,929,696.27 2,748,714.66
3. Decreased amount of the
31,229,339.51 10,409,963.77 3,415,649.87 1,032,253.06 2,758,219.45 48,845,425.66
period
(1) Disposal or write-off 60,727.49 9,543,422.23 2,954,073.36 1,032,253.06 705,912.00 14,296,388.14
(2) Decrease for loss of
167,718.41 461,576.51 2,588.49 631,883.41
controlling right
(3) Other decreases 31,168,612.02 698,823.13 2,049,718.96 33,917,154.11
4. Ending balance 767,535,274.94 1,580,123,838.90 211,321,176.78 43,213,007.67 129,577,611.23 2,731,770,909.52
III. Provision for impairment
1. Opening balance 23,987,527.51 107,259,898.81 2,789,800.42 841,445.29 5,314,014.50 140,192,686.53
2. Increased amount of the
10,646,284.08 10,646,284.08
period
(1) Provision 10,646,284.08 10,646,284.08
3. Decreased amount of the
357,047.03 1,919,104.94 6,536.41 2,282,688.38
period
(1) Disposal or write-off 222,402.39 1,898,966.13 6,536.41 2,127,904.93
(2) Other decrease 134,644.64 20,138.81 154,783.45
4. Ending balance 23,987,527.51 117,549,135.86 870,695.48 841,445.29 5,307,478.09 148,556,282.23
157
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Properties and Machinery and Transport
Item Electronic equipment Other equipment Total
buildings equipment equipment
IV. Carrying value
1. Ending carrying value 3,163,087,309.81 1,702,761,985.31 86,444,491.54 10,906,563.75 54,776,226.87 5,017,976,577.28
2. Opening carrying value 3,299,386,859.68 1,747,866,642.33 99,248,428.97 13,000,149.20 58,795,664.98 5,218,297,745.16
158
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
（2） List of temporarily idle fixed assets
Original carrying Accumulated Provision for
Item Carrying value
value depreciation impairment
Machinery and
814,906,750.09 434,472,592.81 87,220,284.81 293,213,872.47
equipment
Electronic
10,569,556.50 9,252,851.88 111,084.51 1,205,620.11
equipment
Transport
3,887,229.49 3,639,105.62 20,675.15 227,448.72
equipment
Properties and
264,495,526.66 146,277,917.11 7,899,900.07 110,317,709.48
buildings
Other equipment 1,313,806.25 741,647.49 259,629.18 312,529.58
Total 1,095,172,868.99 594,384,114.91 95,511,573.72 405,277,180.36
（3） Fixed assets leased out through operating leases
Item Closing carrying value
Electronic equipment 250,227.89
Machinery and equipment 15,146,352.83
Other equipment 264,878.88
Transport equipment 13,555.68
Total 15,675,015.28
（4） Details of fixed assets failed to accomplish certification of property
Reason
that the
Provision
Original carrying Accumulated certificate
Item for Net book value
value depreciation of title was
impairment
not
completed
Being
Ankang's plants 603,628,412.83 39,879,186.98 563,749,225.85
handled
Housing and buildings Being
453,857,134.27 14,198,661.09 439,658,473.18
of Chongqing Konka handled
Fenggang Konka
Smart Colour TV Being
425,011,644.82 8,765,865.17 416,245,779.65
Project (Section I) handled
Property
Frestec Smart Home
Being
properties and 406,680,006.86 6,075,992.68 400,604,014.18
handled
buildings
159
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Reason
that the
Provision
Original carrying Accumulated certificate
Item for Net book value
value depreciation of title was
impairment
not
completed
Yikang Building Being
76,610,752.33 42,937,872.94 33,672,879.39
property handled
Boluo Printing Plate Being
52,579,211.93 1,670,318.30 50,908,893.63
Phase III Plant handled
Jingyuan Building Being
7,700,000.00 4,331,237.47 3,368,762.53
property handled
Standard electronic
Being
product plants in 1,544,085.19 87,005.85 1,457,079.34
handled
Suining
Total 2,027,611,248.23 117,946,140.48 1,909,665,107.75
160
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
（5） Impairment test of fixed assets
During the Reporting Period, the Company conducted impairment tests on the fixed assets of Henan Frestec Refrigeration Appliance Co., Ltd., determined their
recoverable amounts based on the net fair value less disposal costs, and recognised an impairment loss on assets of RMB10,646,284.08.
Recoverable Impairment Determination of fair value Key
Item Carrying value Basis for determining key parameters
amount amount and disposal costs parameters
1. The scope of asset group: abandoned
1. The fair value is determined and idle equipment such as baler,
on the quotation of second-hand 1. Scope of foaming machine, multi-station vacuum
Machinery equipment of
13,043,951.93 2,397,667.85 10,646,284.08 equipment suppliers; 2. The asset group; 2. forming machine of container and
Frestec Refrigeration
disposal costs are included in the Fair value; gallbladder; 2. The fair value is
quotation and are not considered. determined on the quotation of second-
hand equipment suppliers.
Total 13,043,951.93 2,397,667.85 10,646,284.08 — — —
161
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
（6） Fixed Assets with Restricted Ownership or Use Right
Item Closing carrying value Reasons for the restriction
Anhui Konka's buildings 594,158,945.16 Mortgage loan
Housing and buildings of Chongqing
333,838,258.53 Mortgage loan
Konka
Properties and buildings of Shanxi
257,597,123.66 Mortgage loan
Konka Intelligent
Housing and buildings of Anhui
137,747,881.71 Mortgage loan
Tongchuang
Housing and buildings of Frestec
79,482,863.26 As collateral for finance lease
Refrigeration
Machinery equipment of XingDa
62,102,622.44 As collateral for finance lease
HongYe
Buildings of Konka Group 61,612,474.97 Mortgage loan
Housing and buildings of Jiangsu
34,142,638.01 Mortgage loan
Konka Intelligent
Housing and buildings of XingDa
29,164,839.65 Mortgage loan
HongYe
Machinery equipment of Xinfeng
7,677,954.68 As collateral for finance lease
Microcrystalline
Housing and buildings of Jiangxi Original shareholder guarantee
2,279,341.79
Konka mortgage
Total 1,599,804,943.86
（7） Disposal of Fixed Assets
Item Closing carrying value Opening carrying value
Frestec Refrigeration Project 32,448,750.14
Total 32,448,750.14
162
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
16. Construction in progress
（1） Construction in progress
Closing balance Opening balance
Item
Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Jiangxi High-permeability Crystalisation
246,576,748.57 46,755,148.57 199,821,600.00 246,576,748.57 46,755,148.57 199,821,600.00
Kiln
Dongguan Konka New Industrial Park 12,820,621.35 12,820,621.35
Construction of Suining Electronic
177,627,683.33 177,627,683.33 177,516,258.23 177,516,258.23
Industrial Park Workshops
Suining Konka Hongye Plant Decoration
84,574,481.80 84,574,481.80 76,141,438.86 76,141,438.86
Project
Dishwasher Project of Jiangxi Konka 55,685,802.09 55,685,802.09
Production Line Renovation Project of
85,354,578.78 12,415,331.15 72,939,247.63 85,861,185.36 12,518,073.84 73,343,111.52
Jiangxi Konka
Other projects 330,003,779.69 32,822,800.38 297,180,979.31 321,142,187.11 42,750,899.13 278,391,287.98
Total 936,957,893.52 91,993,280.10 844,964,613.42 962,923,620.22 102,024,121.54 860,899,498.68
（2） Changes in major projects under construction in the current period
Name of item Opening balance Increase in the current Decrease in the current period Closing balance
period
163
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Transferred to long-term
Other decreases
assets
Jiangxi High-permeability Crystalisation
246,576,748.57 246,576,748.57
Kiln
Construction of Suining Electronic Industrial
177,516,258.23 111,425.10 177,627,683.33
Park Workshops
Dishwasher Project of Shaanxi Konka 55,685,802.09 55,685,802.09
Total 479,778,808.89 111,425.10 55,685,802.09 424,204,431.90
(Continued)
Proportion Of which: the Capitalisation
Estimated
estimated of Engineering Accumulated amount amount of the rate of the
number
Name of item the project Schedule of interest capitalised interests in the Source of fund
(RMB100
accumulative (%) capitalisation interests in the current period
million)
input (%) current period (%)
Jiangxi High-permeability Crystalisation
3.40 72.52 72.52 32,249,994.16 Bank loans
Kiln
Construction of Suining Electronic Industrial
7.34 95.00 95.00 Self-owned fund
Park Workshops
Dishwasher Project of Shaanxi Konka 0.56 98.86 98.86 Self-owned fund
Total 11.30 32,249,994.16
（3） Provision set aside for impairment of construction in progress in the current period
Decrease in the current
Category Opening balance Increase in the current period Closing balance Reason for withdrawal
period
Jiangxi High-permeability
46,755,148.57 46,755,148.57
Crystalisation Kiln
164
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Decrease in the current
Category Opening balance Increase in the current period Closing balance Reason for withdrawal
period
Jiangxi High Transparent Failure to achieve
36,181,822.63 6,224,551.33 29,957,271.30
Nano Line 1 Project serviceable conditions
Henan Civil Construction Decrease for losing
3,703,547.42 3,703,547.42
Project control power
Failure to achieve
Other projects 15,383,602.92 102,742.69 15,280,860.23
serviceable conditions
Total 102,024,121.54 10,030,841.44 91,993,280.10 —
（4） Impairment test of construction in progress
There was no provision for impairment of construction in progress during the Reporting Period.
165
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
17. Right-of-use assets
（1） List of right-of-use assets
Electronic Transport
Item Properties and buildings Total
equipment equipment
I. Original carrying
value
1. Opening balance 278,099,315.84 279,350.52 278,378,666.36
2. Increase in the
33,384,402.11 33,384,402.11
current period
(1) Rent 33,384,402.11 33,384,402.11
(2) Others
3. Decrease in the
32,622,122.73 32,622,122.73
current period
(1) Decrease for
loss of controlling
right
(2) Others 32,622,122.73 32,622,122.73
4. Closing balance 278,861,595.22 279,350.52 279,140,945.74
II. Accumulated
depreciation
1. Opening balance 81,209,388.74 114,854.45 81,324,243.19
2. Increase in the
27,978,636.37 31,804.75 28,010,441.12
current period
(1) Provision 27,978,636.37 31,804.75 28,010,441.12
(2) Others
3. Decrease in the
29,940,601.10 29,940,601.10
current period
(1) Decrease for
loss of controlling
right
(2) Others 29,940,601.10 29,940,601.10
4. Closing balance 79,247,424.01 146,659.20 79,394,083.21
III. Provision for
impairment
1. Opening balance
2. Increase in the
current period
166
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Electronic Transport
Item Properties and buildings Total
equipment equipment
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying
199,614,171.21 132,691.32 199,746,862.53
value
2. Opening
196,889,927.10 164,496.07 197,054,423.17
carrying value
Note: Other decreases in original value and accumulated depreciation are mainly due to lease
expiration.
167
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
18. Intangible assets
（1） List of intangible assets
Intellectual property
Item Land use right Right to use Total
Patent and know-
Trademark right Franchise rights software and Subtotal
how
others
I. Original carrying
value
1. Opening balance 886,356,061.91 72,197,456.33 116,697,625.44 187,333,182.47 177,648,647.63 553,876,911.87 1,440,232,973.78
2. Increased amount of
927,169.67 3,620,554.10 4,547,723.77 4,547,723.77
the period
(1) Purchase 2,404,874.68 2,404,874.68 2,404,874.68
(2) Transfer-in of
927,169.67 1,215,679.42 2,142,849.09 2,142,849.09
construction in progress
(3) Other reasons
3. Decreased amount of
24,316,563.55 21,116,714.34 21,116,714.34 45,433,277.89
the period
(1) Disposal 13,773,565.00 21,116,714.34 21,116,714.34 34,890,279.34
(2) Decrease for loss of
controlling right
(3) Decrease for other 10,542,998.55 10,542,998.55
168
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
reasons
4. Ending balance 862,039,498.36 72,197,456.33 116,697,625.44 188,260,352.14 160,152,487.39 537,307,921.30 1,399,347,419.66
II. Accumulated
amortisation
1. Opening balance 96,724,173.74 23,415,626.44 71,699,652.31 11,721,315.62 103,542,668.71 210,379,263.08 307,103,436.82
2. Increased amount of
9,722,325.73 2,081,757.98 54,451.51 5,224,211.87 8,802,235.81 16,162,657.17 25,884,982.90
the period
(1) Provision 9,722,325.73 2,081,757.98 54,451.51 5,224,211.87 8,802,235.81 16,162,657.17 25,884,982.90
(2) Other increases
3. Decreased amount of
2,746,215.07 21,116,714.33 21,116,714.33 23,862,929.40
the period
(1) Disposal 2,610,583.98 21,116,714.33 21,116,714.33 23,727,298.31
(2) Decrease for loss of
controlling right
(3) Decrease for other
135,631.09 135,631.09
reasons
4. Ending balance 103,700,284.40 25,497,384.42 71,754,103.82 16,945,527.49 91,228,190.19 205,425,205.92 309,125,490.32
III. Provision for
impairment
1. Opening balance 564,705.88 44,943,521.62 235,294.12 45,743,521.62 45,743,521.62
2. Increased amount of
the period
169
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
(1) Provision
(2) Increase in business
combinations
3. Decreased amount of
the period
(1) Disposal
(2) Decrease for loss of
controlling right
4. Ending balance 564,705.88 44,943,521.62 235,294.12 45,743,521.62 45,743,521.62
IV. Carrying value
1. Ending carrying
758,339,213.96 46,135,366.03 171,314,824.65 68,689,003.08 286,139,193.76 1,044,478,407.72
value
2. Opening carrying
789,631,888.17 48,217,124.01 54,451.51 175,611,866.85 73,870,684.80 297,754,127.17 1,087,386,015.34
value
Note: There was no impairment of the Group's intangible assets during the Reporting Period.
170
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
（2） Land use right with certificate of title uncompleted
The Group did not have land use rights for which no title deeds had been issued.
（3） Significant intangible assets
Remaining amortisation period
Item Closing carrying value
(year)
Land use right of Dongguan Konka 183,797,800.67 45.17
Concessions of Yibin Konka 171,314,824.65 16.33
Land use right of Frestec Smart Home
89,302,521.51 46.25
Technology
Land usage right of Frestec Refrigeration 62,865,741.86 32.25
Total 507,280,888.69
（4） Intangible assets with restricted ownership or using right
Item Closing carrying value Reasons for the restriction
Land use right of Dongguan Konka 183,797,800.67 Mortgage loan
Land use right of Shanxi Konka Intelligent 109,812,076.81 Mortgage loan
Land use right of Frestec Smart Home
89,302,521.51 Mortgage loan
Technology
Land usage right of Frestec Refrigeration 62,865,741.86 As collateral for finance lease
Land use right of Anhui Konka 53,273,636.00 Mortgage loan
Land use right of Chongqing Konka 44,097,359.88 Mortgage loan
Land use right of Anhui Tongchuang 17,210,885.31 Mortgage loan
Land use right of Jiangsu Konka 13,511,463.83 Mortgage loan
Land use right of XingDa HongYe 12,878,528.02 Mortgage loan
Original shareholder guarantee
Land use right of Jiangxi Konka 11,936,997.05
mortgage
Land use right of Konka Guangming 4,224,230.38 Mortgage loan
Total 602,911,241.32
19. Goodwill
（1） Original carrying value of goodwill
171
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Increase in the current Decrease in the
period current period
Investee Opening balance Closing balance
Formed through
business Others Disposal Others
combinations
Jiangxi Konka 340,111,933.01 340,111,933.01
XingDa
44,156,682.25 44,156,682.25
HongYe
Total 384,268,615.26 384,268,615.26
（2） Provision for goodwill impairment
Increase in the current Decrease in the
period current period
Investee Opening balance Closing balance
Other Othe
Provision Disposal
s rs
Jiangxi Konka 340,111,933.01 340,111,933.01
XingDa
21,959,947.14 21,959,947.14
HongYe
Total 362,071,880.15 362,071,880.15
20. Long-term deferred expenses
Other
Amortisation in
Increase in the decreases in
Item Opening balance the current Closing balance
current period the current
period
period
Decoration
370,388,936.88 8,587,369.87 35,331,884.42 10,930,839.71 332,713,582.62
expenses
Shoppe
24,974,475.38 16,321,473.67 11,660,670.44 1,664,114.98 27,971,163.63
expense
Others 123,555,811.45 35,612,984.68 21,836,551.80 7,880,195.32 129,452,049.01
Total 518,919,223.71 60,521,828.22 68,829,106.66 20,475,150.01 490,136,795.26
21. Deferred Income Tax Assets/Deferred Income Tax Liabilities
（1） Deferred tax assets that have not been offset
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Deductible
3,833,414,709.20 811,599,214.91 3,747,584,829.70 794,363,411.92
losses
172
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Provision for
asset 1,829,025,527.80 401,304,876.17 1,879,389,407.11 407,751,765.55
impairment
Deferred
167,074,039.39 36,955,793.78 167,691,056.33 36,766,230.50
revenue
Accrued
313,175,362.02 66,365,728.23 262,522,401.07 58,732,850.29
expenses
Unrealised
internal sales 55,997,896.96 11,745,908.12 55,653,196.64 13,913,299.16
profits
Lease liabilities 201,197,429.82 50,004,006.85 207,847,769.62 50,208,319.90
Others 260,960,747.01 61,612,266.63 279,982,155.72 64,838,104.84
Total 6,660,845,712.20 1,439,587,794.69 6,600,670,816.19 1,426,573,982.16
（2） Deferred tax liabilities that have not been offset
Closing balance Opening balance
Item Deferred tax Deferred tax
Taxable temporary Taxable temporary
differences liabilities differences liabilities
Estimated
added value of
167,391,570.39 35,716,343.31 154,693,540.82 37,285,533.12
assets not under
the same control
Prepaid interest 37,541,390.08 9,385,347.52 37,541,390.08 9,385,347.52
Accelerated
depreciation of 44,154,571.98 6,785,641.35 3,005,493.04 608,518.82
fixed assets
Financial assets
at fair value
148,002,025.36 37,000,506.34 327,802,549.12 81,950,637.29
through profit
or loss
Right-of-use
192,106,186.72 48,026,546.70 195,220,008.99 48,074,535.52
assets
Others 9,249,308.72 2,312,327.18 47,153,970.40 7,721,593.00
Total 598,445,053.25 139,226,712.40 765,416,952.45 185,026,165.27
（3） Breakdown of unrecognised deferred tax assets
Item Closing balance Opening balance
173
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Deductible losses 4,607,675,003.87 3,693,212,186.74
Deductible temporary differences 3,928,816,549.12 4,173,904,666.60
Total 8,536,491,552.99 7,867,116,853.34
（4） Deductible losses of unrecognised deferred tax assets matured/will mature in the
following year
Year Closing balance Opening balance Notes
2024 121,029,752.50 175,414,641.28
2025 435,923,297.45 464,500,932.68
2026 209,031,391.65 224,104,387.87
2027 94,666,236.63 110,289,035.04
2028 740,529,446.35 2,718,903,189.87
2029 and following years 3,006,494,879.29
Total 4,607,675,003.87 3,693,212,186.74 —
22. Other non-current assets
Closing balance
Item
Provision for
Book balance Carrying value
impairment
Prepayment for land-purchase 1,029,457,502.92 1,029,457,502.92
Prepayment for construction, equipment
266,687,168.69 266,687,168.69
and other long-term assets
Total 1,296,144,671.61 1,296,144,671.61
(Continued)
Opening balance
Item
Provision for
Book balance Carrying value
impairment
Prepayment for land-purchase 1,029,317,896.04 1,029,317,896.04
Prepayment for construction, equipment
219,010,910.12 219,010,910.12
and other long-term assets
Total 1,248,328,806.16 1,248,328,806.16
23. Assets with restricted ownership or use rights
Item End of the period
174
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Type of
Book balance Carrying value Restriction details
restriction
Among them,
RMB439,611,924.45 is margin
deposit, pledged for
borrowings or issuing bank
Margins, acceptance; RMB664.24 is
Monetary
1,135,996,069.35 1,135,996,069.35 pledges, time financial supervisory account
assets
deposits funds; RMB469,680,000.00 is
time deposit that cannot be
withdrawn in advance;
RMB226,703,480.66 is
restricted due to other reasons.
Accounts
1,082,099.02 1,059,896.50 Pledge Pledge loan
receivable
Notes
135,131,288.11 135,131,288.11 Pledge Pledged to issue bills
receivable
Inventory 477,577,793.08 477,577,793.08 Mortgage Mortgage loan
Investment
706,736,950.42 643,316,578.58 Mortgage Mortgage loan
property
Mortgage for finance lease,
mortgage loan, mortgage
Fixed assets 1,937,212,292.51 1,599,804,943.86 Mortgage
guaranteed by the original
shareholder
Mortgage for finance lease,
Intangible mortgage loan, mortgage
627,235,336.77 602,911,241.32 Mortgage
assets guaranteed by the original
shareholder
Construction
46,810,437.16 46,810,437.16 Mortgage Mortgage loan
in progress
Total 5,067,782,266.42 4,642,608,247.96 — —
(Continued)
Beginning of the period
Item
Type of
Book balance Carrying value Restriction details
restriction
Among them,
RMB384,011,696.60 is margin
deposit, pledged for borrowings
Margins, or issuing bank acceptance,
Monetary
831,575,227.47 831,575,227.47 pledges, time RMB226,611,500.00 is time
assets
deposits deposit that cannot be
withdrawn in advance;
RMB220,952,030.87 is
restricted due to other reasons.
Accounts
2,527,314.22 2,474,071.67 Pledge Pledge loan
receivable
Notes 209,288,446.67 209,288,446.67 Pledge They are pledged for the
175
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Beginning of the period
Item
Type of
Book balance Carrying value Restriction details
restriction
receivable issuance of bank acceptance
Carrying value of inventories
seized as a result of the
minority shareholder case of a
subsidiary was
Seizure,
Inventory 601,395,411.05 599,475,045.44 RMB49,679,547.48, and the
mortgage
Company did not waive claims;
year-end book value of
inventory used for mortgage
loans was RMB549,795,497.96.
Investment
634,578,011.63 585,984,804.04 Mortgage Mortgage loan
property
Mortgage for finance lease,
mortgage loan, mortgage
Fixed assets 2,003,558,346.93 1,689,602,310.18 Mortgage
guaranteed by the original
shareholder
Mortgage for finance lease,
Intangible mortgage loan, mortgage
687,667,571.97 620,594,057.60 Mortgage
assets guaranteed by the original
shareholder
Construction
40,629,663.23 40,629,663.23 Mortgage Mortgage loan
in progress
Total 5,011,219,993.17 4,579,623,626.30 — —
24. Short-term loans
（1） Classification of short-term loans
Type of borrowings Closing balance Opening balance Notes
Unsecured loan 5,487,754,338.21 4,741,431,032.21
Guaranteed loan 660,533,547.75 1,374,378,896.71 ①②③
Mortgage loan 361,799,744.99 274,782,127.35 ④⑤⑥⑦⑧
Total 6,510,087,630.95 6,390,592,056.27
①The Company has provided a joint and several guarantee for the short-term borrowings totaling
RMB199,942,853.31 taken out by its subsidiaries Anhui Konka, Yibin Smart, Boluo Precision,
Jiangxi Konka, Jiangxi Konka and Konka Xinyun Semiconductor.
②The Company has obtained short-term borrowings amounting to RMB410,418,472.21 from
Shenzhen Chegongmiao Sub-branch of China Everbright Bank Co., Ltd., and the Company's
subsidiaries Suining Konka Industrial Park and Konka Circuit have each provided a joint and
several guarantee for debts continuously incurred in a specific period and capped at a specific
176
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
amount, being liable for 80% and 20% of such debts, respectively.
③The Company's subsidiary Ningbo Khr Electric Appliance has obtained short-term borrowings
amounting to RMB50,172,222.23 from Cixi Guancheng Sub-branch of Bank of China Limited,
for which the Company and KEG Group Co., Ltd. have each provided a joint and several
guarantee at the ratio of 3:2.
④By mortgaging properties and buildings with a carrying value of RMB409,974,007.80 and land
use rights with a carrying value of RMB35,467,241.33, the Company's subsidiary Anhui Konka
has obtained short-term borrowings amounting to RMB141,791,828.32 from Chuzhou Branch of
Bank of China Limited.
⑤By mortgaging land use rights with a carrying value of RMB89,302,521.51, the Company's
subsidiary Frestec Smart Home has obtained short-term borrowings amounting to
RMB52,056,333.33 from Xinxiang Branch of Industrial Bank Co., Ltd., and the Company and
Meng Honggang, the legal representative of Chuzhou Hanshang Electrical Appliances Co., Ltd.,
have each provided a joint and several guarantee for debts continuously incurred in a specific
period and capped at a specific amount, being liable for 51% and 49% of such debts, respectively.
⑥By mortgaging properties and buildings with a carrying value of RMB29,164,839.65 and land
use rights with a carrying value of RMB12,878,528.02 and pledging a certificate of deposit in the
amount of RMB19,800,000.00, with a joint and several guarantee provided by Hu Zehong, the
Company's subsidiary XingDa HongYe has obtained short-term borrowings amounting to
RMB94,090,083.34 from Fusha Sub-branch of Zhongshan Rural Commercial Bank Co., Ltd.
⑦By mortgaging properties and buildings with a carrying value of RMB34,142,638.01 and land
use rights with a carrying value of RMB13,511,463.83, the Company's subsidiary Jiangsu Konka
Smart has obtained short-term borrowings amounting to RMB30,033,750.00 from Changzhou
Branch of China Zheshang Bank Co., Ltd.
⑧By mortgaging properties and buildings with a carrying value of RMB137,747,881.71 and land
use rights with a carrying value of RMB17,210,885.31, the Company's subsidiary Anhui
Tongchuang has obtained short-term borrowings amounting to RMB43,827,750.00 from Hefei
Branch of China Zheshang Bank Co., Ltd.
（2） Outstanding Short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current period.
25. Notes payable
Type of note Closing balance Opening balance
Banker's acceptance 775,950,422.77 786,833,882.36
Commercial acceptance draft 205,977,959.18 203,649,044.84
177
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Type of note Closing balance Opening balance
Total 981,928,381.95 990,482,927.20
26. Accounts payable
Item Closing balance Opening balance
Within one year 2,320,012,296.29 2,002,263,324.19
One to two years 390,501,476.73 448,060,250.16
Two to three years 75,821,318.63 107,371,417.74
Over three years 154,216,669.07 169,136,683.88
Total 2,940,551,760.72 2,726,831,675.97
27. Accounts received in advance
Type of note Closing balance Opening balance
Rents 311,664.91
Total 311,664.91
28. Contract liabilities
（1） Contract liabilities
Item Closing balance Opening balance
Sales advances received 326,016,727.91 527,975,160.12
Total 326,016,727.91 527,975,160.12
Note: Contractual liabilities over one year are detailed in "VI.41. Other non-current
liabilities" in this note.
（2） Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the
Reporting Period.
（3） Significant changes in carrying value in the current period
There were no significant changes in carrying value in the current period.
29. Payroll payable
（1） List of payrolls payable
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
178
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Short-term
302,906,283.43 663,359,406.44 770,236,182.60 196,029,507.27
remuneration
Post-employment
benefits-defined 984,500.20 51,532,957.08 51,538,306.83 979,150.45
contribution plans
Dismissal benefits 842,320.00 8,099,251.50 7,462,264.74 1,479,306.76
Other benefits due
within one year
Total 304,733,103.63 722,991,615.02 829,236,754.17 198,487,964.48
（2） Short-term remuneration
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Salaries, bonuses,
allowances and 292,819,254.32 584,485,214.41 693,448,301.36 183,856,167.37
subsidies
Employee benefits 5,354,332.27 31,342,888.00 29,128,609.38 7,568,610.89
Social insurance
564,961.75 22,518,004.27 22,491,339.94 591,626.08
premiums
Including: Medical
396,722.21 20,007,041.07 19,958,059.73 445,703.55
insurance premiums
Work injury
77,112.94 1,644,853.26 1,605,135.75 116,830.45
insurance premiums
Maternity
91,126.60 866,109.94 928,144.46 29,092.08
insurance premiums
Housing fund 486,011.97 19,532,752.22 19,688,006.12 330,758.07
Labour union funds
3,681,723.12 5,480,547.54 5,479,925.80 3,682,344.86
and education funds
Short-term absence
with payment
Short-term profit
sharing plan
Others
Total 302,906,283.43 663,359,406.44 770,236,182.60 196,029,507.27
（3） Defined contribution plans
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
179
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Basic endowment
management 835,465.17 49,330,295.67 49,333,661.41 832,099.43
insurance
Unemployment
149,035.03 2,202,661.41 2,204,645.42 147,051.02
insurance premiums
Annuity contribution
Total 984,500.20 51,532,957.08 51,538,306.83 979,150.45
30. Taxes payable
Item Closing balance Opening balance
Value-added tax 15,634,896.66 66,607,505.30
Property tax 12,276,323.34 5,219,025.56
Stamp duty 7,282,071.55 6,782,263.86
Corporate income tax 6,262,028.72 91,733,192.66
Land use tax 3,597,483.22 11,704,493.10
Personal income tax 2,197,631.55 2,285,063.65
Tariff 1,678,500.01 1,513,377.11
City construction and maintenance tax 572,922.63 3,479,642.26
Education fees and local education
434,273.38 2,525,463.27
Surcharge
Fund for disposing abandoned appliances
21,210,465.50
and electronic products
Others 1,629,201.77 1,356,643.60
Total 51,565,332.83 214,417,135.87
31. Other payables
Item Closing balance Opening balance
Interest payable
Other payables 1,762,366,179.22 1,922,791,905.14
Total 1,762,366,179.22 1,922,791,905.14
31.1 Interests payable
Item Closing balance Opening balance
Interest on corporate bonds
Interest on long-term borrowings with
interest paid by installment and principal
180
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
paid at maturity
Interest payable on short-term borrowings
Total
31.2 Other Payables
（1） Other accounts payable presented based on the fund nature
Nature of fund Closing balance Opening balance
Trading funds 666,170,006.98 798,553,216.65
Expenses payable 463,347,998.31 521,810,773.58
Related party borrowing 216,849,686.69 236,064,633.74
Cash deposit and front 291,952,029.84 282,035,338.52
Advance payment 6,202,442.99 5,480,880.33
Equity payable 24,302,796.96 24,302,796.96
Others 93,541,217.45 54,544,265.36
Total 1,762,366,179.22 1,922,791,905.14
（2） Significant other accounts payable with an age of more than one year or overdue
Reason for non-repayment or
Unit Closing balance
carry-over
The Third Construction Engineering
It was not yet due for payment as
Company Ltd. of China Construction 21,535,346.08
per the contract
Second Engineering Bureau
Total 21,535,346.08
32. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one
2,718,841,649.66 2,891,407,222.55
year
Long-term payables due within one year 140,336.20 141,650.44
Bonds payable due within one year 830,985,555.48 2,370,572,421.45
Lease liabilities due within one year 50,971,866.23 52,026,101.92
Total 3,600,939,407.57 5,314,147,396.36
33. Other current liabilities
181
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Accounts payable paid by endorsement
of outstanding notes at the end of the 13,712,030.20 11,524,075.93
Reporting Period
Tax to be charged off 17,159,993.79 23,890,662.41
Refunds payable 15,404,439.30 18,915,977.41
Total 46,276,463.29 54,330,715.75
34. Long-term loans
Type of borrowings Closing balance Opening balance Notes
Guaranteed loan 3,652,266,829.86 4,047,706,381.39 ①②③④⑤⑥⑦⑧⑨
Mortgage loan 1,337,302,982.46 1,207,161,686.81 ⑩
Entrusted borrowings 2,089,923,918.27 2,054,850,296.35
Unsecured loan 2,743,058,366.07 3,276,240,462.52
Pledge loan 102,077,890.63 84,598,475.36
Less: Portion due within one
2,718,841,649.66 2,891,407,222.55
year
Total 7,205,788,337.63 7,779,150,079.88
① The Company has obtained long-term borrowings amounting to RMB1,478,977,500.00 from
Shenzhen Branch of China Guangfa Bank Co., Ltd., the term of which is from 23 August 2022 to
20 December 2026, and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.
② The Company has obtained long-term borrowings amounting to RMB1,290,971,055.64 from
Shenzhen Branch of China Development Bank Co., Ltd., the term of which is from 22 December
2022 to 22 September 2026, and for which the Company's parent company OCT Group provides
joint and several liability guarantee at the maximum amount.
③ The Company has obtained long-term borrowings amounting to RMB600,351,666.66 from the
Shenzhen Branch of Export-Import Bank of China, the term of which is from 25 June 2024 to 25
June 2026, and for which the Company's parent company OCT Group provides joint and several
liability guarantee at the maximum amount.
④ The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB80,083,333.33 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.
⑤The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB48,486,886.48 from Chuzhou Branch of Agricultural Bank of China Co., Ltd., the term of
which is from 29 June 2023 to 28 June 2028, and for which the Company provides joint and
several liability guarantee.
⑥ The Company's subsidiary Anhui Tongchuang has obtained long-term borrowings amounting
to RMB29,029,000.00 from Chuzhou Branch of China Everbright Bank Co., Ltd., the term of
which is from 26 December 2023 to 25 June 2025, and for which the Company provides joint and
182
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
several liability guarantee at the maximum amount.
⑦ The Company's subsidiary Konka Xinyun Semiconductor has obtained long-term borrowings
amounting to RMB42,812,500.00 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 provides joint
and several liability guarantee.
⑧ The Company's subsidiary Sichuan Konka has obtained long-term borrowings amounting to
RMB28,053，833.34 from Yibin Rural Commercial Bank Co. Ltd., the term of which is from 23
May 2023 to 26 April 2026, and for which the Company provides joint and several liability
guarantee.
⑨The Company's subsidiary GuangDong XingDa HongYe Electronic Co., Ltd. has obtained
long-term borrowings amounting to RMB53,501,054.41 from Chengdu Branch of Industrial Bank
Co., Ltd., the term of which is from 25 January 2024 to 7 November 2038, and for which the
Company and Guangdong Shudian Technology Development Enterprise (Limited partnership)
provide joint and several liability guarantee at the maximum amount.
⑩The Company has obtained long-term borrowings amounting to RMB399,892,032.96 from
Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co., Ltd., the term of which is from 21
January 2021 to 17 January 2027, and for which it provides land use rights of a carrying value of
RMB4,224,230.38 and investment properties of a carrying value of RMB572,516,043.72 and
properties and buildings of a carrying value of RMB61,612,474.97 as mortgage.
The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB80,309,336.72 from Chuzhou Branch of Industrial Bank Co., Ltd., the term of which is from
16 July 2021 to 15 July 2031, and for which it provides fixed assets of a carrying value of
RMB184,184,937.36 and land use rights of a carrying value of RMB17,806,394.67 as mortgage,
and for which the Company provides joint and several liability guarantee.
The Company's subsidiary Dongguan Konka has obtained long-term borrowings amounting to
RMB331,310,338.95 from Dongguan Fenggang Sub-branch of Agricultural Bank of China Co.,
Ltd., the term of which is from 23 June 2021 to 21 October 2030, and for which it provides land
use rights as intangible assets of a carrying value of RMB183,797,800.67 as mortgage and the
Company provides joint and several liability guarantee.
The Company's subsidiary Nantong Kanghai has obtained long-term borrowings amounting to
RMB47,955,164.36 from Haimen Sub-branch of Bank of Suzhou Co., Ltd., the term of which
from 24 April 2023 to 25 July 2025, and for which it provides land use rights and construction in
progress of a carrying value of RMB261,709,900.51 as mortgage.
The Company's subsidiary Shanxi Konka Intelligent has obtained long-term borrowings
amounting to RMB247,747,500.00 from Shanxi Free Trade Zone Xi'an International Port Area
Sub-branch of Industrial and Commercial Bank of China Co., Ltd., the term of which is from 28
September 2023 to 3 November 2033, and for which it provides investment properties of a
carrying value of RMB70,800,534.86, properties and buildings of a carrying value of
RMB257,597,123.66 and land use rights of a carrying value of RMB109,812,076.81 as mortgage.
The Company's subsidiary Xi'an Kanghong Technology Industry has obtained long-term
borrowings amounting to RMB81,540,943.64 from the Business Department of Shanxi Branch of
Bank of Communications Co., Ltd., the term of which is from 15 June 2023 to 31 December 2032,
and for which it provides properties and buildings and land use rights of a carrying value of
RMB215,867,892.57 as mortgage and the Company provides joint and several liability guarantee
at the maximum amount.
The Company's subsidiary Yantai Kangjin has obtained long-term borrowings amounting to
RMB11,100,000.00 from Yantai Rural Commercial Bank Co. Ltd., the term of which is from 16
January 2023 to 12 February 2026, and for which it provides construction in progress of a carrying
value of RMB46,810,437.16 as mortgage.
The Company's subsidiary Chongqing Konka has obtained long-term borrowings amounting to
183
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
RMB137,447,665.83 from Chongqing Liangjiang Branch of Industrial and Commercial Bank of
China Co., Ltd., the term of which is from 30 December 2022 to 29 December 2037, and for
which it provides properties and buildings of a carrying value of RMB333,838,258.53 and land
use rights of a carrying value of RMB44,097,359.88 as mortgage and the Company provides joint
and several liability guarantee at the maximum amount.
The Company's parent company OCT Group has extended entrusted loans amounting to
RMB2,089,923,918.27 to the Company through China Merchants Bank Co., Ltd., the term of
which is from 10 January 2022 to 25 May 2025.
The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB52,311,352.44 from Yibin Branch of Industrial and Commercial Bank of China
Co., Ltd. with the accounts receivable arising from the prospective earnings from a franchise
agreement with an appraisal value of RMB595,900,000.00 as pledge, and the term thereof is from
30 June 2022 to 15 April 2040.
The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB49,766,538.19 from Yibin Branch of Postal Savings Bank of China Co., Ltd.
with the accounts receivable arising from the prospective earnings from a franchise agreement
with an appraisal value of RMB595,900,000.00 as pledge, and the term thereof is from 30 June
2022 to 15 April 2040.
35. Bonds payable
（1） List of Bonds Payable
Item Closing balance Opening balance
Corporate bonds 5,627,894,268.31 4,797,565,000.12
Less: Bonds payable due within one year 830,985,555.48 2,370,572,421.45
Total 4,796,908,712.83 2,426,992,578.67
（2） Changes in bonds payable
Bond
Bond name Total par value Issue date Issue amount Opening balance
maturity
21Konka01 Three
1,000,000,000.00 2021/1/8 996,500,000.00 1,043,732,777.88
(note a) years
21Konka02 Three
500,000,000.00 2021/5/21 498,250,000.00 512,094,339.67
(note b) years
21Konka03 Three
800,000,000.00 2021/7/9 797,200,000.00 814,745,303.93
(note c) years
22Konka01 Three
1,200,000,000.00 2022/7/14 1,195,800,000.00 1,217,398,867.91
(note d) years
22Konka03 Three
600,000,000.00 2022/9/8 597,900,000.00 605,499,371.09
(note e) years
22Konka05 Three
600,000,000.00 2022/10/18 597,900,000.00 604,094,339.64
(note f) years
24Konka01 Three
1,500,000,000.00 2024/1/29 1,495,200,000.00
(note g) years
24Konka02
400,000,000.00 2024/3/18 Three 398,720,000.00
(note h)
184
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Bond
Bond name Total par value Issue date Issue amount Opening balance
maturity
years
24Konka03 Three
400,000,000.00 2024/3/18 398,720,000.00
(note i) years
Total 7,000,000,000.00 6,976,190,000.00 4,797,565,000.12
(Continued)
Issuance in the current Accrue interest by Amortisation of
Bond name
period par value premium/discount
21Konka01 (note a) 867,222.12
21Konka02 (note b) 7,722,222.21 183,438.12
21Konka03 (note c) 15,800,000.00 440,251.55
22Konka01 (note d) 19,380,000.00 660,377.29
22Konka03 (note e) 9,900,000.00 330,188.74
22Konka05 (note f) 10,500,000.00 330,188.74
24Konka01 (note g) 1,495,200,000.00 25,500,000.00 998,113.18
24Konka02 (note h) 398,720,000.00 4,622,222.21 199,077.58
24Konka03 (note i) 398,720,000.00 4,656,888.88 199,077.57
Total 2,292,640,000.00 98,948,555.42 3,340,712.77
(Continued)
Prepayment in the current
Bond name Closing balance
period
21Konka01 (note a) 1,044,600,000.00
21Konka02 (note b) 520,000,000.00
21Konka03 (note c) 830,985,555.48
22Konka01 (note d) 1,237,439,245.20
22Konka03 (note e) 615,729,559.83
22Konka05 (note f) 614,924,528.38
24Konka01 (note g) 1,521,698,113.18
24Konka02 (note h) 403,541,299.79
24Konka03 (note i) 403,575,966.45
Total 1,564,600,000.00 5,627,894,268.31
Note 1:
a: On 8 January 2021, the Company issued RMB1 billion of private placement corporate bonds
with the duration of three years, the annual interest rate of 4.46% and the due date of 8 January
185
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2024. "21 Konka 01" was fully redeemed and delisted from the exchange on 8 January 2024.
b: On 21 May 2021, the Company issued RMB500 million of private placement corporate bonds
with the duration of three years, the annual interest rate of 4.00% and the due date of 21 May 2024.
"21 Konka 02" was fully redeemed and delisted from the exchange on 21 May 2024.
c: On 9 July 2021, the Company issued RMB800 million of private placement corporate bonds
with the duration of three years, the annual interest rate of 3.95% and the due date of 9 July 2024.
"21 Konka 03" was fully redeemed and delisted from the exchange on 9 July 2024.
d: On 14 July 2022, the Company issued RMB1.2 billion of public placement corporate bonds
with the duration of three years, the annual interest rate of 3.23% and the due date of 14 July 2025.
e: On 8 September 2022, the Company issued RMB600 million of private placement corporate
bonds with the duration of three years, the annual interest rate of 3.30% and the due date of 8
September 2025.
f: On 18 October 2022, the Company issued RMB600 million of private placement corporate
bonds with the duration of three years, the annual interest rate of 3.50% and the due date of 18
October 2025.
g: On 29 January 2024, the Company issued RMB1.5 billion of private placement corporate bonds
with the duration of three years, the annual interest rate of 4.00% and the due date of 29 January
2027.
h: On 18 March 2024, the Company issued RMB0.4 billion of private placement corporate bonds
with the duration of three years, the annual interest rate of 4.00% and the due date of 18 March
2027.
i: On 18 March 2024, the Company issued RMB0.4 billion of private placement corporate bonds
with the duration of three years, the annual interest rate of 4.03% and the due date of 18 March
2027.
Note 2: OCT Group provided full-amount, unconditional and irrevocable joint and several
liabilities guarantee for the due payment of the public and private offering of corporate bonds.
36. Lease liabilities
Item Closing balance Opening balance
Lease liabilities 216,913,078.79 212,244,920.84
Less: Lease liabilities due within one year (see
50,971,866.23 52,026,101.92
Note VI-32)
Total 165,941,212.56 160,218,818.92
37. Long-term payables
Item Closing balance Opening balance
Payables for equipment 5,488,624.85 6,823,209.13
Less: Unrecognised financing expenses 390,942.07 545,824.62
186
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Less: Amount due within one year (see Note VI-
140,336.20 141,650.44
32)
Total 4,957,346.58 6,135,734.07
38. Long-term payroll payables
Item Closing balance Opening balance
Termination benefits-net liabilities of defined
4,661,069.67 4,718,466.37
contribution plans
Total 4,661,069.67 4,718,466.37
39. Estimated liabilities
Item Closing balance Opening balance Cause(s)
Pending litigation 206,591.51 206,591.51
Discard expenses 1,684,347.81 1,644,068.13
After-sales of household
Product quality assurance 120,667,033.32 101,726,574.07
appliances
Performance compensation 200,942,606.09 200,942,606.09
Total 323,500,578.73 304,519,839.80
187
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
40. Deferred revenue
（1） Category of deferred income
Increase in the current Decrease in the current
Item Opening balance Closing balance Cause(s)
period period
Government grants 425,135,237.90 15,638,700.00 32,082,830.68 408,691,107.22 Related to assets/income
Total 425,135,237.90 15,638,700.00 32,082,830.68 408,691,107.22
（2） Government subsidy items
Amount Amount
Subsidies recognised as recognised as
Related to
Government subsidy items Opening balance increased in the non-operating other income in Other changes Closing balance
assets/income
current period income in the the current
current period period
Headquarters 8K device-side
22,424,922.40 3,000,000.00 1,064,187.26 24,360,735.14 Related to assets
R&D project of Konka Group
Plant construction subsidy for
103,545,436.45 1,159,766.16 102,385,670.29 Related to assets
Yibin Konka Industrial Park
Plant decoration subsidy for
10,074,508.36 719,607.72 9,354,900.64 Related to assets
Yibin Konka Industrial Park
Equipment subsidy for Konka
Related to
Xinyun Semiconductor 9,696,681.53 449,675.04 9,247,006.49
income
(Yancheng)
Returned payments for land by
17,934,545.55 196,363.62 17,738,181.93 Related to assets
Chongqing Konka
188
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount Amount
Subsidies recognised as recognised as
Related to
Government subsidy items Opening balance increased in the non-operating other income in Other changes Closing balance
assets/income
current period income in the the current
current period period
Medical waste centralised
treatment project in Gaoxian 29,150,950.10 865,869.78 28,285,080.32 Related to assets
County, Yibin City
Other government subsidies Related to
232,308,193.51 12,638,700.00 13,627,361.10 14,000,000.00 217,319,532.41
related to assets/income assets/income
Total 425,135,237.90 15,638,700.00 18,082,830.68 14,000,000.00 408,691,107.22
189
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
41. Other non-current liabilities
Item Closing balance Opening balance
Contract liabilities over one year 205,172,360.96 179,996,351.33
Total 205,172,360.96 179,996,351.33
42. Share capital
Increase/decrease (+/-) in the current period
Item Opening balance Bonus Closing balance
New
Bonus issue
shares Others Subtotal
issue from
issued
profit
Total
2,407,945,408.00 2,407,945,408.00
shares
43. Capital reserves
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Other capital
526,499,506.76 6,498,827.39 11,288,034.03 521,710,300.12
surplus
Total 526,499,506.76 6,498,827.39 11,288,034.03 521,710,300.12
Note: Capital surplus for the Reporting Period--other capital surplus increase and decrease due to
the main reasons:
①The associated enterprise Wuhan Tianyuan Environmental Protection Co., Ltd. issued
conversion of convertible bonds, resulting in a decrease in other capital surplus of
RMB11,288,034.03.
②The equity incentives of the associated enterprise Hefei KONSEMI Storage Technology Co.,
Ltd. resulted in an increase in other capital surplus of RMB6,498,827.39.
190
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
44. Other comprehensive income
Beginning of the
Amount incurred in the current period End of the period
period
Less: Amount
Less: Amount
recognised as
recognised as
other
other
Item comprehensive
comprehensive Attributable to Attributable to
Amount incurred income in the
income in the Less: Income the parent minority
Balance before income tax in previous period Balance
previous period tax expense company after shareholders after
the current period and transferred
and transferred to tax tax
to retained
profit or loss in
earnings in the
the Reporting
Reporting
Period
Period
I. Other comprehensive
income that cannot be
-6,398,878.20 -6,398,878.20
reclassified as profits or
losses
Changes in the fair value of
other equity instrument -6,398,878.20 -6,398,878.20
investments
Others
II. Other comprehensive
income reclassified as -7,044,680.24 -2,253,474.92 -681,509.64 -1,571,965.28 -7,726,189.88
profits and losses
Including: Other
comprehensive income that
can be transferred to profits -4,115,978.90 -83,919.23 -83,919.23 -4,199,898.13
or losses under the equity
method
Exchange difference on -2,928,701.34 -2,169,555.69 -597,590.41 -1,571,965.28 -3,526,291.75
translating foreign
191
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Beginning of the
Amount incurred in the current period End of the period
period
Less: Amount
Less: Amount
recognised as
recognised as
other
other
Item comprehensive
comprehensive Attributable to Attributable to
Amount incurred income in the
income in the Less: Income the parent minority
Balance before income tax in previous period Balance
previous period tax expense company after shareholders after
the current period and transferred
and transferred to tax tax
to retained
profit or loss in
earnings in the
the Reporting
Reporting
Period
Period
operations
Total of other
-13,443,558.44 -2,253,474.92 -681,509.64 -1,571,965.28 -14,125,068.08
comprehensive income
192
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
45. Special reserve
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Safety production fund 4,657,488.24 2,537,402.71 579,353.59 6,615,537.36
Total 4,657,488.24 2,537,402.71 579,353.59 6,615,537.36
46. Surplus reserves
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Statutory surplus
1,005,961,774.19 1,005,961,774.19
reserves
Discretionary
238,218,590.05 238,218,590.05
surplus reserves
Total 1,244,180,364.24 1,244,180,364.24
47. Unappropriated profit
Item The current period Last period
Balance as at the end of last period 1,474,561,975.85 3,638,352,029.02
Add: Total beginning balance of retained earnings before
adjustments
Including: Changes in accounting policies
Opening balance of current period 1,474,561,975.85 3,638,352,029.02
Add: Net profit attributable to owners of the parent
-1,087,581,842.55 -2,163,790,053.17
company in the current period
Less: Appropriation of statutory surplus reserves
Ordinary share dividends payable
Closing balance of the current period 386,980,133.30 1,474,561,975.85
48. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current period Amount incurred last period
Item
Income Cost Income Cost
Principal 9,989,383,650.13 9,658,914,170.75
5,085,252,685.02 4,774,748,009.74
business
Other 482,677,521.81 420,429,613.36
327,277,687.45 235,221,605.28
business
193
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Amount incurred in the current period Amount incurred last period
Total 5,412,530,372.47 5,009,969,615.02 10,472,061,171.94 10,079,343,784.11
（2） Information on the breakdown of operating revenue and cost of sales
Category of contracts Operating income Operating expenses
Business type
Of which: Consumer appliances business 2,247,070,655.48 2,014,585,214.49
Colour TV business 2,115,790,827.61 2,069,113,672.93
PCB business 231,558,538.52 201,913,961.50
Semiconductor and memory
82,962,696.19 104,195,917.13
chip business
Other business 735,147,654.67 620,160,848.97
Total 5,412,530,372.47 5,009,969,615.02
Classified by operating region
Of which: Domestic 4,046,161,239.69 3,696,751,585.18
Overseas 1,366,369,132.78 1,313,218,029.84
Total 5,412,530,372.47 5,009,969,615.02
（3） Information in relation to the trade price apportioned to the residual contract
performance obligation
The amount of revenue corresponding to performance obligations that have been contracted but
have not yet been fulfilled or completed at the end of the period is RMB1,061,116,290.83, of
which RMB885,586,483.67 is expected to be recognised as revenue in 2024, and the remaining
RMB175,529,807.16 is expected to be recognised as revenue in 2025 and following years.
49. Taxes and surcharges
Amount incurred in the
Item Amount incurred last period
current period
Stamp duty 20,423,713.44 17,006,122.55
Land use tax 10,267,616.69 8,628,212.80
Property tax 22,000,493.47 9,429,982.31
City maintenance & construction tax 3,736,313.54 3,916,672.25
Educational surcharge 1,783,117.24 1,795,764.31
Local educational surcharge 1,124,579.62 1,197,136.14
194
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred in the
Item Amount incurred last period
current period
Water resources fund 466,801.02 474,599.45
Others 4,890,300.09 270,476.72
Total 64,692,935.11 42,718,966.53
50. Selling expenses
Amount incurred in the
Item Amount incurred last period
current period
Employee benefits 179,816,426.03 171,827,349.50
Advertising expense 58,845,808.44 114,639,309.81
Warranty fee 97,656,311.72 80,388,332.75
Promotional activities 81,436,139.43 95,664,759.55
Logistic Fee 36,650,239.62 41,136,310.25
Travel expenses 10,047,637.20 9,554,537.27
Lease expense 4,534,869.11 5,281,279.82
Entertainment fees 5,092,642.27 6,056,077.13
Exhibition expenses 3,678,606.92 5,525,688.44
Taxes and fund 549,965.00
Others 17,617,773.52 27,913,056.01
Total 495,376,454.26 558,536,665.53
51. Administration expenses
Amount incurred in the
Item Amount incurred last period
current period
Employee benefits 154,300,923.47 201,752,601.81
Depreciation charges 112,987,437.91 103,962,882.38
Intermediary fees 10,762,242.10 20,680,100.93
Travel expenses 3,069,025.63 6,391,903.53
Water and electricity expenses 6,470,775.15 5,169,402.73
Loss on scraping of inventories 544,223.62 580,512.03
Others 27,811,392.14 51,707,164.36
Total 315,946,020.02 390,244,567.77
195
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
52. R&D expense
Amount incurred in the
Item Amount incurred last period
current period
Salary 112,601,611.50 125,331,251.82
Depreciation and amortisation charge 55,043,697.25 52,673,986.51
New product trial production expense 13,867,547.29 12,377,094.01
Material expense 9,254,000.43 17,796,228.66
Commission service fee 222,156.14 2,048,184.94
Testing expense 2,797,313.59 3,249,155.22
Information use fee 369,876.67 360,938.22
Others 20,421,823.94 23,197,053.73
Total 214,578,026.81 237,033,893.11
53. Finance costs
Amount incurred in the
Item Amount incurred last period
current period
Interest expense 407,018,728.71 432,772,700.64
Less: Interest income 116,244,724.79 123,908,981.38
Add: Exchange loss -25,405,623.27 -133,558,528.06
Other expenses 15,543,995.01 23,770,433.30
Total 280,912,375.66 199,075,624.50
54. Other income
Amount incurred in the
Resources Amount incurred last period
current period
Support funds 13,782,260.00 70,000,000.00
Rewards and subsidies 22,036,812.48 23,457,361.87
Transfer of deferred income 18,082,830.68 38,449,192.67
Software tax refund 1,596,783.94 3,434,829.42
Post subsidies 110,985.80 541,457.45
Subsidies for L/C exports 1,158,714.67 2,034,374.00
Tax rebates and refunds 56,768,387.57 137,917,215.41
55. Investment income
196
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred in the
Item Amount incurred last period
current period
Returns on long-term equity investments
-41,296,057.12 -30,242,661.05
calculated by the equity method
Return on investment arising from the
2,450,000.00 188,118,447.66
disposal of long-term equity investments
Conversion of long-term equity investments
accounted for by the equity method to 574,780,174.75
financial assets
Income from remeasurement of residual stock
51,474,909.15
rights at fair value after losing control power
Interest income from debt investments during
9,640,886.02 36,609,075.35
the holding period
Return on investment in the financial assets
4,240,444.62 9,383,976.00
held for trading during the holding period
Income from the derecognition of financial
-1,970,677.82
assets at amortized cost
Investment income from disposal of financial
11,456.91 -3,794,910.98
assets at fair value through profit or loss
Others 31,971,391.61 500,000.00
Total 5,047,444.22 826,829,010.88
56. Income from changes in the fair value
Sources of income from changes in the fair Amount incurred in the
Amount incurred last period
value current period
Financial assets at fair value through profit or
-179,800,523.76 -132,580,077.43
loss
Total -179,800,523.76 -132,580,077.43
57. Credit impairment loss
Amount incurred in the
Item Amount incurred last period
current period
Bad debt loss of notes receivable -16,435.60 6,446,862.01
Bad debt loss of accounts receivable -25,990,993.24 -50,164,953.87
Bad debt loss of other accounts receivable -137,072,004.34 -96,474,587.50
Total -163,079,433.18 -140,192,679.36
58. Impairment losses on assets
Amount incurred in the
Item Amount incurred last period
current period
197
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred in the
Item Amount incurred last period
current period
Inventory depreciation loss and contract
-81,109,796.34 -15,274,484.20
performance cost impairment loss
Impairment loss of long-term equity
-245,911.63
investments
Impairment loss on fixed assets -10,646,284.08
Contractual asset impairment loss -10,874.90 -9,012.56
Total -92,012,866.95 -15,283,496.76
59. Asset disposal income ("-" for loss)
Amount recorded
Amount incurred in Amount incurred into the non-
Item
the current period last period recurring profit or
loss of current period
Incomes from disposal of held-for-
sale assets
Incomes from disposal of non-current
590,329.38 64,713.62 590,329.38
assets
Including: incomes from disposal of
non-current assets not classified as 590,329.38 64,713.62 590,329.38
held-for-sale assets
Including: Fixed assets disposal
54,072.55 -195,494.55 54,072.55
income
Intangible assets disposal income 18,588.36
Income from disposal of
construction in progress
Right-of-use assets disposal
536,256.83 241,619.81 536,256.83
income
Income from non-monetary assets
exchange
Income from disposal of non-current
assets in debt restructuring
Total 590,329.38 64,713.62 590,329.38
60. Non-operating income
（1） List of Non-operating Income
Amount recorded
Amount incurred in Amount incurred into the non-
Item
the current period last period recurring profit or
loss of current period
198
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount recorded
Amount incurred in Amount incurred into the non-
Item
the current period last period recurring profit or
loss of current period
Compensation and penalty income 3,092,879.89 2,522,169.54 3,092,879.89
Government grants not related to the
8,708,660.28
ordinary activities of the enterprise
Non-current assets damage and
7,433.54 450.00 7,433.54
retirement gains
Others 12,673,210.46 6,094,337.36 12,673,210.46
Total 15,773,523.89 17,325,617.18 15,773,523.89
（2） Government subsidies recorded in profit or loss of the current period
The Company had no government subsidies recorded in profit or loss in the current period.
61. Non-operating expenses
Amount recorded
Amount incurred in Amount incurred into the non-
Item
the current period last period recurring profit or
loss of current period
Losses on damage and scraping of
2,221,846.15 1,419,908.80 2,221,846.15
non-current assets
Compensation expense 294,044.54 54,800.00 294,044.54
Others 3,639,914.15 2,851,899.22 3,639,914.15
Total 6,155,804.84 4,326,608.02 6,155,804.84
62. Income tax expense
（1） Income tax expense
Amount incurred in the current
Item Amount incurred last period
period
Income tax expense in the current
7,537,422.29 27,239,426.46
period
Deferred income tax expense -58,813,265.42 -43,950,094.04
Total -51,275,843.13 -16,710,667.58
（2） Adjustment process of accounting profits and income tax expenses
Item Amount incurred in the current period
Total consolidated profit in the current period -1,331,813,998.08
Income tax expense calculated at legal/applicable tax rate -332,953,499.52
Impact of different tax rates applied by subsidiaries 49,670,857.48
199
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Amount incurred in the current period
Impact of income tax in the periods before adjustment 2,029,136.42
Impact of non-taxable income -1,326,854.19
Impacts of non-deductible costs, expenses, and losses 6,364,150.59
Impact of using deductible losses on the deferred tax assets not
-3,249,242.62
recognised previously
Impact of deductible temporary differences or deductible
losses of deferred tax assets not recognised in the current 232,204,752.55
period
Changes in the balance of deferred income tax assets/
liabilities in previous period due to adjustment of tax rate
Others -4,015,143.83
Income tax expense -51,275,843.13
63. Other comprehensive income
For details, please refer to "Note VI-44 Other comprehensive income".
64. Items in the cash flow statement
（1） Cash related to operating activities
1） Other cash received related to operating activities
Amount incurred in the
Item Amount incurred last period
current period
Income from government subsidies 48,053,764.37 196,790,552.27
Front money and guarantee deposit 46,360,237.95 107,899,740.15
Trading funds 30,412,346.71 45,235,678.79
Interest income from bank deposits 42,714,837.97 49,564,086.35
Compensation and penalty income 7,630,486.32 8,691,566.66
Others 35,512,873.11 26,051,273.52
Total 210,684,546.43 434,232,897.74
2） Other cash paid related to operating activities
Amount incurred in the
Item Amount incurred last period
current period
Cash payment fee 402,018,344.95 535,602,399.78
Deposit and margin 44,313,952.61 146,237,387.07
200
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred in the
Item Amount incurred last period
current period
Payment made on behalf 124,940.56 5,640,757.14
Expense for bank handling charges 2,373,726.27 2,735,395.17
Others 16,687,924.10 65,077,290.21
Total 465,518,888.49 755,293,229.37
（2） Cash related to investment activities
1） Significant cash received related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Recovery of loan at call 10,535,206.45 382,971,149.03
Total 10,535,206.45 382,971,149.03
2） Significant cash paid related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Payment of loan at call 310,116,949.03
Total 310,116,949.03
3） Other cash received related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Recovery of loan at call 10,535,206.45 382,971,149.03
Cash received from acquisition of
subsidiaries
Others 12,609,773.16 46,988,449.65
Total 23,144,979.61 429,959,598.68
4） Other cash paid related to investment activities
Amount incurred in the
Item Amount incurred last period
current period
Payment of loan at call 310,116,949.03
Cash paid for disposal of subsidiaries
Others 2,127,401.00 161,037,718.80
201
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred in the
Item Amount incurred last period
current period
Total 2,127,401.00 471,154,667.83
（3） Cash related to financing activities
1） Other proceeds received related to financing activities
Amount incurred in the
Item Amount incurred last period
current period
Recovery of margin deposit pledged 354,016,478.39 219,929,641.72
Receiving loan at call 50,370,200.00
Others
Total 354,016,478.39 270,299,841.72
2） Other cash paid related to financing activities
Amount incurred in the
Item Amount incurred last period
current period
Deposit as margin for pledge 663,728,905.41 401,172,422.54
Cash paid for leases 21,561,318.50 62,969,375.44
Retuning loan at call 17,268,436.34 1,870,614.17
Financing cost 13,578,122.88 20,729,450.01
Others 4,101,071.57
Total 720,237,854.70 486,741,862.16
202
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
3） Changes in liabilities arising from financing activities
Increase in the current period Decrease in the current period
Item Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities due
5,314,147,396.36 3,554,889,000.05 4,420,572,739.53 847,524,249.31 3,600,939,407.57
within one year
Short-term loans 6,390,592,056.27 4,722,488,141.61 95,250,537.68 4,698,063,104.58 180,000.03 6,510,087,630.95
Long-term loans 7,779,150,079.88 2,399,991,403.90 220,066,042.50 474,380,098.93 2,719,039,089.72 7,205,788,337.63
Bonds payable 2,426,992,578.67 2,292,640,000.00 916,756,951.59 8,495,261.95 830,985,555.48 4,796,908,712.83
Lease liabilities 160,218,818.92 38,146,433.42 18,785,621.02 13,638,418.76 165,941,212.56
Long-term payables 6,135,734.07 156,196.78 1,156,606.99 177,977.28 4,957,346.58
Total 22,077,236,664.17 9,415,119,545.51 4,825,265,162.02 9,621,453,433.00 4,411,545,290.58 22,284,622,648.12
203
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
（4） Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current period.
（5） Significant activities and financial effects that do not involve current cash
receipts and payments but affect the financial position of the enterprise or may affect the
enterprise's cash flows in the future
Item Amount incurred in the current period
Payment for materials made by endorsement of notes
1,011,509,768.95
receivable
Acquisition of long-term assets by endorsement of notes
47,756,919.89
receivable
Other payments made by endorsement of notes receivable 86,393,313.21
65. Supplementary data on the statements of cash flows
（1） Supplementary data on the statements of cash flows
Amount of current
Item Amount of last period
period
1. Reconciliation of net profit to cash flows from
— —
operating activities:
Net profit -1,280,538,154.95 -328,427,966.51
Add: Provision for asset impairment 92,012,866.95 15,283,496.76
Credit impairment loss 163,079,433.18 140,192,679.36
Depreciation of fixed assets, depletion of oil and gas
229,778,679.61 217,019,718.21
assets, and depreciation of productive biological assets
Depreciation of right-of-use assets 28,010,441.12 11,748,166.57
Amortisation of intangible assets 25,884,982.90 26,128,581.85
Amortisation of long-term prepaid expense 68,829,106.66 62,948,271.42
Losses on disposal of fixed assets, intangible assets
-590,329.38 -64,713.62
and other long-lived assets (" " indicates income)
Losses on scrap of fixed assets (" " indicates income) 2,214,412.61 1,419,458.80
Losses on changes in fair value (" " indicates income) 179,800,523.76 132,580,077.43
Finance costs (" " indicates income) 354,429,278.33 383,689,359.03
Investment loss (" " indicates income) -5,047,444.22 -826,829,010.88
Decrease in deferred income tax assets (" " indicates
-13,013,812.53 -154,867,914.83
increase)
Increase in deferred income tax liabilities (" " indicates -45,799,452.88 110,917,820.79
204
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount of current
Item Amount of last period
period
decrease)
Decrease in inventories (" " indicates increase) -286,354,098.48 -265,531,923.08
Decrease in accounts receivable generated from
106,159,668.41 13,821,648.87
operating activities (" " indicates increase)
Increase in accounts payable used in operating activities
-40,111,635.54 296,871,337.26
(" " indicates decrease)
Others -18,082,830.68 -38,449,192.67
Net cash flows from operating activities -439,338,365.13 -201,550,105.24
2. Significant investment and financing activities not
involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Balance of cash at the end of the period 4,378,374,510.08 6,030,068,656.57
Less: Opening balance of cash 5,674,784,349.55 5,461,912,010.90
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1,296,409,839.47 568,156,645.67
（2） Net cash paid for the acquisition of subsidiaries in the current period
No such cases in the Reporting Period.
（3） Net cash received for the disposal of subsidiaries in the current period
No such cases in the Reporting Period.
（4） Composition of cash and cash equivalents
Item Closing balance Opening balance
Cash 4,378,374,510.08 5,674,784,349.55
Including: Cash on hand 469.28
Bank deposits available for payment at any time 4,375,229,927.84 5,672,034,875.67
Other monetary funds available for payment at any
3,144,582.24 2,749,004.60
time
205
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Balance of cash and cash equivalents at the end of the
4,378,374,510.08 5,674,784,349.55
period
（5） Presentation of cash and cash equivalents with restricted use
Reasons for classifying
Amount of current
Item Amount of last period the funds as cash and
period
cash equivalents
The proceeds can be
used at any time to
Project loan proceeds 22,487,519.50 20,347,896.55 make payments, and
such payments can only
be made for projects
The proceeds can be
used at any time to
Project pre-sale funds 18,266,154.30 22,377,807.75 make payments, and
such payments can only
be made for projects
Total 40,753,673.80 42,725,704.30 —
（6） Monetary funds not classified as cash and cash equivalents
Reasons for not
Amount of current classifying the funds as
Item Amount of last period
period cash and cash
equivalents
It is pledged for
borrowing or deposit for
Cash deposit 441,866,862.11 440,390,112.54
issuance of banker
acceptance
The management
Time deposits 469,680,000.00 226,700,000.00 intends to hold the
deposits to maturity
Not readily available for
Frozen funds 224,449,207.24 211,180,037.05
payment
Total 1,135,996,069.35 878,270,149.59 —
66. Items in the Statement of Changes in Shareholders' Equity
No "other" amount in the closing amount of last year was adjusted in the current period.
67. Foreign currency monetary items
（1） Foreign currency monetary items
Period-end foreign Period-end balance
Item Exchange rate
currency balance denominated in RMB
Monetary assets
206
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Period-end foreign Period-end balance
Item Exchange rate
currency balance denominated in RMB
Including: USD 66,033,733.90 7.1268 470,609,214.76
EUR 102,467.40 7.6617 785,074.48
EGP 55,989,392.53 0.1484 8,307,832.66
GBP 1.32 9.0430 11.94
HKD 3,461,326.45 0.9127 3,159,083.42
CAD 6.96 5.2274 36.38
PLN 3,231,330.02 1.7689 5,715,829.73
Accounts receivable
Including: USD 83,486,351.12 7.1268 594,990,527.16
EUR 439,537.80 7.6617 3,367,606.76
EGP 2,131.64 0.1484 316.30
HKD 57,955,633.95 0.9127 52,894,947.99
AUD 49,764.00 4.7992 238,827.39
Accounts payable
Including: USD 5,750,797.03 7.1268 40,984,780.27
HKD 923,023.67 0.9127 842,425.24
Other accounts receivable
Including: USD 108,427,213.73 7.1268 772,739,066.81
EGP 108,000.00 0.1484 16,025.28
HKD 1,028,048.88 0.9127 938,279.65
JPY 21,400,000.00 0.0501 1,072,011.60
Accounts payable
Including: USD 33,913,641.95 7.1268 241,695,743.45
EUR 48,742.86 7.8771 383,952.38
EGP 44,720,358.59 0.2338 10,457,617.06
HKD 906,393.76 0.9127 827,247.46
Other payables
Including: USD 4,401,044.69 7.1268 31,365,365.30
EUR 152,526.56 7.6617 1,168,612.74
207
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Period-end foreign Period-end balance
Item Exchange rate
currency balance denominated in RMB
EGP 411,311.00 0.2338 96,182.88
HKD 2,161,652.99 0.9127 1,972,897.45
（2） Overseas entities
The significant overseas entities include Hongdin Trading, Hong Kong Konka, Chain Kingdom
Memory Technologies, Kangjietong, Jiali International, and Kowin Memory (Hong Kong). 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.
VII. R&D expenditures
Amount incurred in the current
Item Amount incurred last period
period
Salary 112,601,611.50 125,331,251.82
Depreciation and amortisation
55,043,697.25 52,673,986.51
charge
New product trial production
13,867,547.29 12,377,094.01
expense
Material expense 9,254,000.43 17,796,228.66
Commission service fee 222,156.14 2,048,184.94
Testing expense 2,797,313.59 3,249,155.22
Information use fee 369,876.67 360,938.22
Others 20,421,823.94 23,197,053.73
Total 214,578,026.81 237,033,893.11
Including: Expensed R&D
214,578,026.81 237,033,893.11
expenditure
Capitalised R&D expenditure
VIII. Changes in the Scope of Consolidation
1. Combinations of businesses not under common control
The Company had no combinations of businesses not under common control in the Reporting
Period.
2. Combinations of businesses under common control
The Company had no combinations of businesses under common control in the Reporting Period.
208
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
3. Disposal of subsidiaries
No such cases in the Reporting Period.
4. Changes in the scope of consolidation due to other reasons
(1) Subsidiaries established in the current period
No subsidiaries were established in the current period.
(2) Subsidiaries cancelled in the current period
Registered capital Shareholding Liquidation completion
Subsidiary
(RMB'0,000) percentage (%) time
Chengdu Anren 500.00 51.00 28 April 2024
Wankaida 1,000.00 100.00 22 January 2024
Konka Intelligent
2,000.00 51.00 29 February 2024
Manufacturing
(3) Other
On 29 February 2024, the People's Court of Ganjingzi District, Dalian, Liaoning Province issued a
civil ruling stipulating that the bankruptcy and liquidation application submitted by the Company's
subsidiary Konka Huanjia shall be accepted, and relevant assets were officially handed over to the
receiver on 14 March 2024. The control over them has been transferred, and the assets are no
longer included in the scope of consolidation.
209
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
IX. Interests in other entities
1. Interests in subsidiaries
（1） Composition of the business group
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Guangdong, Guangdong, Enterprise management consulting, incubation Establishment
1 Konka Ventures 51
Shenzhen Shenzhen management, housing leasing, etc. or investment
Other professional consultation and Establishment
2 Yantai Konka Shandong, Yantai Shandong, Yantai 51
investigation or investment
Establishment
3 Konka Enterprise Service Guizhou, Guiyang Guizhou, Guiyang Enterprise management consulting 51
or investment
Establishment
4 Yibin Konka Incubator Sichuan, Yibin Sichuan, Yibin Commercial services 51
or investment
Establishment
5 Anhui Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing 78
or investment
Establishment
6 Kangzhi Trade Anhui, Chuzhou Anhui, Chuzhou Wholesale 78
or investment
Guangdong, Guangdong, Other science and technology promotion Establishment
7 Konka Electronic Materials 100
Shenzhen Shenzhen services or investment
Guangdong, Guangdong, Establishment
8 Konka Unifortune Trade and services 51
Shenzhen Shenzhen or investment
Establishment
9 Jiali International China, Hong Kong China, Hong Kong Trade and services 51
or investment
Guangdong, Guangdong, Establishment
10 Dongguan Konka Manufacturing 75 25
Dongguan Dongguan or investment
Establishment
11 Suining Konka Smart Sichuan, Suining Sichuan, Suining Wholesale 100
or investment
Establishment
12 Konka Europe Germany, Frankfurt Germany, Frankfurt International trade 100
or investment
210
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Telecommunication Guangdong, Guangdong, Establishment
13 Manufacturing 75 25
Technology Shenzhen Shenzhen or investment
Establishment
14 Konka Mobility China, Hong Kong China, Hong Kong Commerce 100
or investment
Guangdong, Guangdong, Establishment
15 Mobile Interconnection Commerce 100
Shenzhen Shenzhen or investment
Establishment
16 Sichuan Konka Sichuan, Yibin Sichuan, Yibin Manufacturing 100
or investment
Establishment
17 Yibin Smart Sichuan, Yibin Sichuan, Yibin Manufacturing 100
or investment
Establishment
18 Anhui Tongchuang Anhui, Chuzhou Anhui, Chuzhou Manufacturing 100
or investment
Establishment
19 Anhui Electrical Appliance Anhui, Chuzhou Anhui, Chuzhou Manufacturing 51
or investment
Establishment
20 Frestec Refrigeration Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
Establishment
21 Frestec Smart Home Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
Establishment
22 Frestec Electrical Appliances Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
Establishment
23 Frestec Household Appliances Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
Establishment
24 Jiangsu Konka Smart Jiangsu, Changzhou Jiangsu, Changzhou Manufacturing 51
or investment
Establishment
25 Kangjiatong Sichuan, Yibin Sichuan, Yibin Trade and services 100
or investment
Guangdong, Guangdong, Establishment
26 Pengrun Technology Trade and services 51
Shenzhen Shenzhen or investment
Establishment
27 Jiaxin Technology China, Hong Kong China, Hong Kong Trade and services 51
or investment
Establishment
28 Beijing Konka Electronic Beijing Beijing Sale of home appliance 100
or investment
211
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Tianjin Pilot Free Tianjin Pilot Free Establishment
29 Tianjin Konka Service Industry 100
Trade Zone Trade Zone or investment
Guangdong, Guangdong, Establishment
30 Konka Circuit Manufacturing 100
Shenzhen Shenzhen or investment
Establishment
31 Boluo Precision Guangdong, Boluo Guangdong, Boluo Manufacturing 100
or investment
Establishment
32 Boluo Konka Guangdong, Boluo Guangdong, Boluo Manufacturing 100
or investment
Establishment
33 Hong Kong Konka China, Hong Kong China, Hong Kong International trade 100
or investment
Establishment
34 Hongdin Invest China, Hong Kong China, Hong Kong Investment holding 100
or investment
Chain Kingdom Memory Establishment
35 China, Hong Kong China, Hong Kong International trade 51
Technologies or investment
Zhongkang Semiconductor Establishment
36 Zhejiang, Shaoxing Zhejiang, Shaoxing Trade and services 51
(Shaoxing) or investment
Establishment
37 Hongjet China, Hong Kong China, Hong Kong Trade and services 51
or investment
Establishment
38 Hongdin Trading China, Hong Kong China, Hong Kong International trade 100
or investment
Establishment
39 Kanghao Technology Egypt, Cairo Egypt, Cairo International trade 67
or investment
Establishment
40 Konka North America America, California America, California International trade 100
or investment
Guangdong, Guangdong, Establishment
41 Konka Investment Capital market services 100
Shenzhen Shenzhen or investment
Industrial park development and operation Establishment
42 Yibin Konka Technology Park Sichuan, Yibin Sichuan, Yibin 100
management or investment
Guangdong, Guangdong, Establishment
43 Konka Capital Capital market services 100
Shenzhen Shenzhen or investment
212
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Guangdong, Guangdong, Establishment
44 Konka Suiyong Commercial services 51
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
45 Shengxing Industrial Commercial services 51
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
46 Zhitong Technology Software and information technology services 51
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
47 Electronics Technology Manufacturing 100
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
48 Shenzhen Kangcheng Software and information technology services 100
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
49 Xiaojia Technology Retail trade 100
Shenzhen Shenzhen or investment
Establishment
50 Haimen Konka Jiangsu, Nantong Jiangsu, Nantong Trade and services 100
or investment
Establishment
51 Chengdu Konka Smart Sichuan, Chengdu Sichuan, Chengdu Trade and services 100
or investment
Establishment
52 Chengdu Konka Electronic Sichuan, Chengdu Sichuan, Chengdu Manufacturing 100
or investment
Guangdong, Guangdong, Establishment
53 XingDa HongYe Manufacturing 51
Zhongshan Zhongshan or investment
Establishment
54 Liaoyang Kangshun Smart Liaoning, Liaoyang Liaoning, Liaoyang Wholesale 100
or investment
Liaoyang Kangshun Comprehensive utilization of renewable Establishment
55 Liaoning, Liaoyang Liaoning, Liaoyang 100
Renewable resources or investment
Establishment
56 Nanjing Konka Jiangsu, Nanjing Jiangsu, Nanjing Wholesale 100
or investment
Establishment
57 Shanghai Konka Shanghai Shanghai Real estate 100
or investment
Establishment
58 Yantai Kangjin Shandong, Yantai Shandong, Yantai Real estate 62.8
or investment
213
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Establishment
59 Jiangxi Konka Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing 51
or investment
Establishment
60 Xinfeng Microcrystalline Jiangxi, Nanchang Jiangxi, Nanchang Manufacturing and processing 51
or investment
Guangdong, Guangdong, Establishment
61 Shenzhen Nianhua Commercial services 100
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
62 Shenzhen KONSEMI Semiconductors 100
Shenzhen Shenzhen or investment
Establishment
63 Chongqing Konka Chongqing Chongqing Software and information technology services 100
or investment
Guangdong, Guangdong, Establishment
64 Konka Eco-Development Commercial services 51
Shenzhen Shenzhen or investment
Industrial park development and operation Establishment
65 Suining Konka Industrial Park Sichuan, Suining Sichuan, Suining 100
management or investment
Establishment
66 Konka Ronghe Zhejiang, Jiaxing Zhejiang, Jiaxing Wholesale and retail trade 51
or investment
Suining Electronic Establishment
67 Sichuan, Suining Sichuan, Suining Commercial services 100
Technological Innovation or investment
Shenzhen Chuangzhi Guangdong, Guangdong, Establishment
68 Wholesale 100
Electrical Appliances Shenzhen Shenzhen or investment
Chongqing Konka Establishment
69 Chongqing Chongqing Research & experiment development 70 5
Optoelectronic Technology or investment
Guangdong, Guangdong, Computer, telecommunications and other Establishment
70 Kowin Memory (Shenzhen) 100
Shenzhen Shenzhen electronic equipment manufacturing or investment
Computer, telecommunications and other Establishment
71 Konka Xinyun Semiconductor Jiangsu, Yancheng Jiangsu, Yancheng 100
electronic equipment manufacturing or investment
Jiangkang (Shanghai) Establishment
72 Shanghai Shanghai Research & experiment development 51
Technology or investment
Establishment
73 Ningbo Kanghr Electrical Zhejiang, Ningbo Zhejiang, Ningbo Electrical machinery and equipment 60
or investment
214
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Appliance manufacturing
Establishment
74 Suining Jiarun Property Sichuan, Suining Sichuan, Suining Real estate 100
or investment
Ecological protection and environmental Establishment
75 Yibin Kangrun Sichuan, Yibin Sichuan, Yibin 67
governance services or investment
Hainan Konka Material Establishment
76 Hainan, Haikou Hainan, Haikou Commercial services 100
Technology or investment
Jiangxi High Transparent Establishment
77 Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing 51
Substrate or investment
Computer, telecommunications and other Establishment
78 Nantong Hongdin Jiangsu, Nantong Jiangsu, Nantong 100
electronic equipment manufacturing or investment
Establishment
79 Chuzhou Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing 94.9
or investment
Establishment
80 Konka Soft Electronic Sichuan, Suining Sichuan, Suining Manufacturing 97.5
or investment
Establishment
81 Konka Hongye Electronics Sichuan, Suining Sichuan, Suining Manufacturing 95.05
or investment
Wholesale of computers, software and auxiliary Establishment
82 Kowin Memory (Hong Kong) China, Hong Kong China, Hong Kong 100
equipment or investment
Establishment
83 Konka Cross-border (Hebei) Hebei, Handan Hebei, Handan Wholesale 100
or investment
Establishment
84 Konka Huazhong Hunan, Changsha Hunan, Changsha Commercial services 100
or investment
Ecological protection and environmental Establishment
85 Yibin Kangrun Medical Sichuan, Yibin Sichuan, Yibin 63.65
governance services or investment
Manufacture of household cleaning and sanitary Establishment
86 Shanxi Konka Intelligent Shanxi, Xi'an Shanxi, Xi'an 51
electrical appliances or investment
Chongqing Xinyuan Science and technology promotion and Establishment
87 Chongqing Chongqing 75
Semiconductor application services or investment
215
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
Establishment
88 Anlu Konka Hubei, Anlu Hubei, Anlu Software and information technology services 100
or investment
Guangdong, Guangdong, Establishment
89 Kanghong Dongsheng Commercial services 95.09
Shenzhen Shenzhen or investment
Guizhou, Qiannan Guizhou, Qiannan
Guizhou Konka New Material Buyi and Miao Buyi and Miao Establishment
90 Manufacturing and processing 51
Technology Autonomous Autonomous or investment
Prefecture Prefecture
Establishment
91 Guangdong Xinwei Guangdong, Lvfeng Guangdong, Lvfeng Semiconductors 100
or investment
Guizhou, Qiannan Guizhou, Qiannan
Guizhou Kanggui Material Buyi and Miao Buyi and Miao Establishment
92 Manufacturing and processing 70
Technology Autonomous Autonomous or investment
Prefecture Prefecture
Establishment
93 Nantong Kanghai Jiangsu, Nantong Jiangsu, Nantong Real estate 51
or investment
Establishment
94 Chongqing Kangyiyun Chongqing Chongqing Real estate 80
or investment
Establishment
95 Jiangxi Konka High-tech Park Jiangxi, Shangrao Jiangxi, Shangrao Commercial services 100
or investment
Shangrao Konka Electronic Establishment
96 Jiangxi, Shangrao Jiangxi, Shangrao Research & experiment development 100
Technology Innovation or investment
Establishment
97 Guizhou Konka New Energy Guizhou, Kaili Guizhou, Kaili Manufacture of non-metallic mineral products 98
or investment
Establishment
98 Zhejiang Konka Electronic Zhejiang, Shaoxing Zhejiang, Shaoxing Research & experiment development 100
or investment
Zhejiang Konka Technology Establishment
99 Zhejiang, Shaoxing Zhejiang, Shaoxing Commercial services 51 49
Industry or investment
Establishment
100 Xi'an Konka Intelligent Shanxi, Xi'an Shanxi, Xi'an Wholesale 51
or investment
Establishment
101 Xi'an Konka Network Shanxi, Xi'an Shanxi, Xi'an Computer, telecommunications and other 100
or investment
216
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Shareholding percentage
Main place of (%) Acquisition
No. Subsidiary Place of registration Business nature
business method
Direct Indirect
electronic equipment manufacturing
Xi'an Kanghong Technology Establishment
102 Shanxi, Xi'an Shanxi, Xi'an Commercial services 40 60
Industry or investment
Xi'an Konka Intelligent Establishment
103 Shanxi, Xi'an Shanxi, Xi'an Retail trade 100
Technology or investment
Establishment
104 Anhui Konka Low Carbon Anhui, Ma'anshan Anhui, Ma'anshan Wholesale 55
or investment
Guangdong, Guangdong, Establishment
105 Kanghong Xintong Commercial services 95.09049
Shenzhen Shenzhen or investment
Establishment
106 Songyang Industry Operation Zhejiang, Lishui Zhejiang, Lishui Software and information technology services 51
or investment
Guangdong, Guangdong, Computer, telecommunications and other Establishment
107 Kangyan Technology 100
Shenzhen Shenzhen electronic equipment manufacturing or investment
Konka Photovoltaic Science and technology promotion and Establishment
108 Zhejiang, Hangzhou Zhejiang, Hangzhou 60
Technology application services or investment
Establishment
109 Songyang Konka Intelligent Zhejiang, Lishui Zhejiang, Lishui Wholesale 100
or investment
Electrical machinery and equipment Establishment
110 Konka North China Tianjin Tianjin 100
manufacturing or investment
Guangdong, Guangdong, Establishment
111 Digital Technology Software and information technology services 100
Shenzhen Shenzhen or investment
（2） Major non-wholly-owned subsidiaries
Dividends declared to be
Profit or loss attributable
Shareholding of minority distributed to minority Closing balance of minority
Subsidiary to minority shareholders
shareholders shareholders in the current shareholders' equities
in the current period
period
217
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Anhui Konka Electronic Co., Ltd. 22.00% 1,640,884.45 109,418,450.03
（3） Key financial data on major non-wholly-owned subsidiaries
Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Anhui Konka Electronic Co.,
2,971,965,145.27 848,965,358.81 3,820,930,504.08 3,103,220,127.80 166,769,283.06 3,269,989,410.86
Ltd.
(Continued)
Opening balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Anhui Konka Electronic Co.,
1,603,653,502.77 871,575,618.36 2,475,229,121.13 1,774,223,005.73 159,000,548.27 1,933,223,554.00
Ltd.
(Continued)
Amount incurred in the current period
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities
Anhui Konka Electronic Co., Ltd. 510,624,823.36 7,458,565.66 7,458,565.66 9,930,838.81
(Continued)
Amount incurred last period
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities
218
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred last period
Subsidiary
Cash flows from operating
Operating income Net profit Total comprehensive income
activities
Anhui Konka Electronic Co., Ltd. 972,416,661.43 -12,062,430.83 -12,062,430.83 6,806,364.98
219
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2. Interests in joint ventures or associated enterprises
（1） Major joint ventures or associated enterprises
Shareholding Accounting
Name of the joint Main percentage (%) processing method
Place of Business for investment in
venture or associated place of
registration nature joint ventures or
enterprise business
Direct Indirect associated
enterprises
Dongfang Jiakang
No.1 (Zhuhai) Private Investment
Zhuhai Zhuhai 49.95 Equity method
Equity Investment management
Fund (LP)
Professional
Shenzhen Jielunte
Shenzhen Shenzhen machinery 42.79 Equity method
Technology Co., Ltd.
manufacturing
（2） Key financial data on significant associated enterprises
Amount incurred at the end of the period/in the current
period
Item
Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 682,532,551.61 276,265,292.05
Non-current assets 375,613,432.02
Total assets 682,532,551.61 651,878,724.07
Current liabilities 10,026,785.45 283,099,134.56
Non-current liabilities 168,822,795.30
Total liabilities 10,026,785.45 451,921,929.86
Equities of minority shareholders 7,252,798.82
Equities attributable to shareholders of the
672,505,766.16 192,703,995.39
parent company
Share of net assets calculated based on the
335,916,630.20 82,458,039.63
shareholding
Adjustments
- Goodwill
- Internal unrealised profit
220
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred at the end of the period/in the current
period
Item
Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
- Others
Carrying value of equity investments in
335,916,630.20 82,458,039.63
associated enterprises
Fair values of equity investments of joint
ventures with quoted prices
Operating income 165,625,501.64
Finance costs -34,467.40 1,873,337.25
Income tax expense 4,233,127.86
Net profit 34,467.40 -18,219,902.67
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 34,467.40 -18,219,902.67
Dividends received from associated
enterprises in the current year
(Continued)
Amount incurred at the beginning of the period/in last period
Item Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 686,882,241.74 274,817,240.18
Non-current assets 338,361,205.79
Total assets 686,882,241.74 613,178,445.97
Current liabilities 10,026,785.45 261,433,145.90
Non-current liabilities 133,388,974.62
Total liabilities 10,026,785.45 394,822,120.52
Equities of minority shareholders 9,322,847.51
Equities attributable to shareholders of the
676,855,456.29 209,033,477.94
parent company
Share of net assets calculated based on the
338,089,300.42 94,917,575.00
shareholding
221
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred at the beginning of the period/in last period
Item Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Adjustments
- Goodwill
- Internal unrealised profit
- Others
Carrying value of equity investments in
338,089,300.42 94,917,575.00
associated enterprises
Fair values of equity investments of joint
ventures with quoted prices
Operating income 168,815,683.51
Finance costs -284,133.17 1,539,262.28
Income tax expense 2,245,248.55
Net profit 25,641,054.77 -13,237,135.87
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 25,641,054.77 -13,237,135.87
Dividends received from associated
enterprises in the current year
（3） Combined financial data on insignificant joint ventures and associated
enterprises
Amount incurred at the end of Amount incurred at the
Item the period/in the current beginning of the period/in
period last period
Associated enterprise
Total carrying value of investment 5,075,226,991.71 5,133,476,987.87
The total of following items according to the
shareholding proportions
Net profit -31,243,007.66 -37,153,622.36
Other comprehensive income -83,919.23
Total comprehensive income -31,326,926.89 -37,153,622.36
222
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
X. Government grants
1. Liability items involving government subsidies
Amount
recognised Amount
Subsidies as non- transferred Other
Related to
Account Opening increased in operating to other changes in Closing
assets/
title balance the current income in incomes in the current balance
income
period the the current period
current period
period
Deferred Related to
425,135,237.90 15,638,700.00 18,082,830.68 14,000,000.00 408,691,107.22
revenue assets/income
2. Government subsidies recognised as profit and loss of the Reporting Period
Amount incurred in the current
Account title Amount incurred last period
period
Other income 56,768,387.57 137,917,215.41
XI. Risks Related to Financial Instruments
The Group'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. The risks related to these financial instruments and the risk
management policies adopted by the Group to mitigate these risks are described below. The
management of the Group manages and monitors these risk exposures to ensure that these risks are
controlled within a limited scope.
1. Management objectives and policies for various risks
The Group's objective in engaging in the risk management is to achieve the proper balance
between the risks and benefits, minimize the negative impact of these risks on the Company's
operating results, and maximize the profits of shareholders and other equity investors. Based on
the risk management goal, the basic strategy of the Company's risk management is determining
and analyzing the various risks faced by the Company, setting up the bottom line of risk and
conducting appropriate risk management, and timely supervising various risks in a reliable way
and controlling the risk within the range of limit.
（1） Market risk
1） Exchange rate 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 Group 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 Group'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 of 30 June 2024, the Group'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 Closing balance Opening balance
Monetary assets 66,195,513.58 91,184,116.43
223
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Accounts receivable 83,486,351.12 85,032,871.75
Other accounts receivable 108,427,213.73 110,836,591.33
Other payables 4,820,283.44 3,453,133.32
Accounts payable 33,913,641.95 4,828,295.25
The Group pays close attention to the impact of exchange rate changes on the Group'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 Group bears interest rate risk due to interest rate changes of interest-bearing financial assets
and liabilities. The Group's interest bearing financial assets are mainly bank deposits, of which the
majority of the variable interest rates are short-term in nature, while the interest bearing financial
liabilities are mainly bank borrowings and corporate bonds. The Group's long-term bank
borrowings and corporate 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 bank
borrowings with floating interest rates. The Group's policy is to maintain the floating interest rates
of such borrowings to eliminate the fair value risk of interest rate changes. As of 30 June 2024, the
balance of such short-term borrowings was RMB6,510,087,630.95.
（2） Credit risk
As of 30 June 2024, the maximum credit risk exposure that may cause financial losses to the
Group mainly came from losses generated from the Group's financial assets due to failure of the
other party to a contract to perform its obligations and the financial guarantee undertaken by the
Group, including:
The carrying amount of financial assets recognised 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 Group 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 Group reviews the recovery of each single
receivable on each balance sheet date to ensure that sufficient provision for bad debts is made for
the unrecoverable amount. Therefore, the Group's management believes that the Group's credit
risk has been greatly reduced.
The Group's working capital is deposited in banks with a high credit rating, so the credit risk of
working capital is low.
The Group 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 Group has no
other major credit concentration risks. For the financial assets of the Group 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 Group is unable to fulfill its financial obligations on the
due date. The Group 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 Group's
reputation. In order to mitigate the liquidity risk, the Group's management has carried out a
224
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
detailed inspection on the liquidity of the Group, including the maturity of accounts payable and
other payables, bank credit line and bond financing. The conclusion is that the Group 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 Group based on the
maturity period of the undiscounted remaining contractual obligations is as follows:
225
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount as of 30 June 2024:
Item Within one year One to two years Two to five years Over five years Total
Financial assets
Monetary assets 5,514,370,579.43 5,514,370,579.43
Held-for-trading financial assets 294,937,209.31 294,937,209.31
Notes receivable 301,987,637.11 301,987,637.11
Accounts receivable 1,361,996,890.11 294,570,006.54 156,534,862.43 43,859,681.15 1,856,961,440.23
Other accounts receivable 80,785,644.43 64,298,860.97 684,427,848.89 16,280.00 829,528,634.29
Other current assets 2,361,815,002.60 2,361,815,002.60
Financial liabilities
Short-term loans 6,510,087,630.95 6,510,087,630.95
Notes payable 981,928,381.95 981,928,381.95
Accounts payable 2,320,012,296.29 390,501,476.73 217,357,907.56 12,680,080.14 2,940,551,760.72
Other payables 1,034,749,812.17 489,694,436.35 168,672,631.73 69,249,298.97 1,762,366,179.22
Payroll payable 198,487,964.48 198,487,964.48
Non-current liabilities due within
3,600,939,407.57 3,600,939,407.57
one year
Long-term loans 4,232,479,248.20 1,961,154,263.34 1,012,154,826.09 7,205,788,337.63
Bonds payable 2,468,093,333.41 2,328,815,379.42 4,796,908,712.83
Long-term payables 3,734,931.39 1,222,415.19 4,957,346.58
226
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2. Sensitivity analysis
The Group 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:
H1 2024 H1 2023
Exchange
Item rate Impact on Impact on
fluctuations Impact on net Impact on net
shareholders' shareholders'
profit profit
equity equity
Appreciation
of 1%
USD 13,258,840.79 8,898,925.74 22,249,707.57 17,750,467.03
against
RMB
Depreciation
of 1%
USD -13,258,840.79 -8,898,925.74 -22,249,707.57 -17,750,467.03
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:
H1 2024 H1 2023
Interest
rate
Item Impact on Impact on
fluctuation Impact on net Impact on net
s shareholders' shareholders'
profit profit
equity equity
Borrowings at
floating Up 0.5% -24,626,858.36 -23,932,778.41 -25,773,357.94 -24,732,737.56
interest rates
Borrowings at
floating Down 0.5% 24,626,858.36 23,932,778.41 25,773,357.94 24,732,737.56
interest rates
227
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
XII. Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Cl o s i n g fa i r va l u e
Item
Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
I. Continuous fair value measurement
(I) Held-for-trading financial assets 294,937,209.31 294,937,209.31
1. Financial assets measured at fair value through profit and loss for
294,937,209.31 294,937,209.31
the Reporting Period
(II) Accounts receivable financing 203,279,738.30 203,279,738.30
(III) Other debt investments
(IV) Other equity instruments investments 23,841,337.16 23,841,337.16
(V) Investment properties
(VI) Other non-current financial assets 1,985,908,473.73 1,985,908,473.73
Total assets continuously measured at fair value 203,279,738.30 2,304,687,020.20 2,507,966,758.50
Total liabilities continuously measured at fair value
II. Non-continuous fair value measurement
Total assets not continuously measured at fair value
Total liabilities not continuously measured at fair value
228
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2. Basis for determining the market price of continuous and non-continuous level-1 fair value
measurement projects
The first level of the input is an unadjusted quoted price in an active market for the same assets and liabilities
available on the measurement date.
3. Qualitative and quantitative data on valuation techniques and important parameters adopted for
continuous and non-continuous level-2 fair value measurement projects
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. Qualitative and quantitative data on valuation techniques and important parameters adopted for
continuous and non-continuous level-3 fair value measurement projects
The third level of the input is the unobservable input of related assets and liabilities.
XIII. Related Party and Related Party Transactions
1. Related party relationship
（1） Parent company of the Company
Shareholding Voting right
percentage of percentage of the
Name of the parent Place of Registered
Business nature the parent parent company
company registration capital
company in the in the Company
Company (%) (%)
Tourism, real estate, RMB12
OCT Group Shenzhen 29.999997 29.999997
electronics industry billion
The ultimate controller of the Company is State-owned Assets Supervisor Commission of the State
Council.
（2） Subsidiaries of the Company
Please refer to note IX-1. (1) Subsidiaries for the information of subsidiaries.
（3） Joint ventures and associated enterprises of the Company
Please refer to Note IX-2. (1) Significant joint ventures and associated enterprises for details of significant joint
ventures or associated enterprises of the Company.
Information on other joint ventures or associated enterprises having connected transactions with the Company
in the current period, or forming balance due to connected transactions made in previous period:
Name Relationship with the Company
229
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Name Relationship with the Company
Anhui Kaikai Shijie E-commerce Co., Ltd. Associated enterprise
Anhui Kangfu New Energy Co., Ltd. Associated enterprise
Anhui Kangta Supply Chain Management Co., Ltd. Associated enterprise
Chuzhou Kangxin Health Industry Development Co., Ltd. Associated enterprise
Chutian Dragon Co., Ltd. Associated enterprise
Orient Excellent (Zhuhai) Asset Management Co., Ltd. Associated enterprise
Dongguan Kangjia New Materials Technology Co., Ltd. Associated enterprise
Dongguan Konka Smart Electronic Technology Co., Ltd. Associated enterprise
Dongguan Guankang Yuhong Investment Co., Ltd. Associated enterprise
Feidi Technology (Shenzhen) Co., Ltd. Associated enterprise
Guangdong Kangyuan Semiconductor Co., Ltd. Associated enterprise
Hefei KONSEMI Storage Technology Co., Ltd. Associated enterprise
Henan Kangfei Intelligent Electric Appliance Co., Ltd. Associated enterprise
Kangkong Venture Capital (Shenzhen) Co., Ltd. Associated enterprise
Nantong Kangjian Technology Industrial Park Operations and
Associated enterprise
Management Co., Ltd.
Puchuang Jiakang Technology Co, Ltd. Associated enterprise
Shandong Kangfei Intelligent Electrical Appliances Co., Ltd. Associated enterprise
Shenzhen Aimijiakang Technology Co., Ltd. Associated enterprise
Shenzhen Kanghongxing Intelligent Technology Co., Ltd. Associated enterprise
Shenzhen Kangpeng Digital Technology Co., Ltd. Associated enterprise
Shenzhen KONKA E-display Co., Ltd. Associated enterprise
Zhejiang Kangying Semiconductor Technology Co., Ltd. (formerly:
Associated enterprise
Shenzhen Kangying Semiconductor Technology Co., Ltd.)
Shenzhen Morsemi Semiconductor Technology Co., Ltd. Associated enterprise
230
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Name Relationship with the Company
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology Co.,
Associated enterprise
Ltd.
Shenzhen Kangxi Technology Innovation Development Co., Ltd. Associated enterprise
Shenzhen RF-Llink Technology Co., Ltd. Associated enterprise
Shenzhen Yaode Technology Co., Ltd. Associated enterprise
Shenzhen Zhongkang Beidou Technology Co., Ltd. Associated enterprise
Sichuan Chengrui Real Estate Co., Ltd. Associated enterprise
KK Smartech Limited Associated enterprise
Yantai Kangyun Industrial Development Co., Ltd. Associated enterprise
Yancheng Kangyan Information Industry Investment Partnership (Limited
Associated enterprise
Partnership)
Yibin Kanghui Electronic Information Industry Equity Investment
Associated enterprise
Partnership (Limited Partnership)
E3info (Hainan) Technology Co., Ltd. Associated enterprise
Shandong Econ Technology Co., Ltd. Associated enterprise
Chongqing Kangjian Photoelectric Technology Co., Ltd. Associated enterprise
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited
Associated enterprise
Partnership)
Chongqing Kangyiqing Technology Co., Ltd. Associated enterprise
Sichuan Hongxinchen Real Estate Development Co., Ltd. Associated enterprise
Wuhan Kangtang Information Technology Co., Ltd. Associated enterprise
Foshan Zhujiang Media Creative Park Cultural Development Co., Ltd. Associated enterprise
Panxu Intelligence Co., Ltd. Associated enterprise
（4） Other related parties
Names of other related parties Relationship with the Company
HOHOELECTRICAL&FURNITURECO.,LIMITED Minority shareholder of subsidiary
231
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Names of other related parties Relationship with the Company
Beijing Xuri Shengxing Technology Co., Ltd. Minority shareholder of subsidiary
Chuzhou Hanshang Electric Appliance Co., Ltd. Minority shareholder of subsidiary
Korea Electric Group Co., Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Shenzhen New Journey Energy Conservation and Environmental
Minority shareholder of subsidiary
Protection Service Co., Ltd.
Central Enterprises Poverty Alleviation (Jiangxi) Industrial Fund
Minority shareholder of subsidiary
Partnership (L.P.)
Chongqing Liangshan Industrial Investment Co., Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Chuzhou State-owned Assets Management Co., Ltd. Minority shareholder of subsidiary
Shenzhen Unifortune Supply Chain Management Co., Ltd. Minority shareholder of subsidiary
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong Technology Co., Ltd. Minority shareholder of subsidiary
Suiyong Rongxin Asset Management Co., Ltd. Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co., Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Jiangsu Korea Electric Group Co., Ltd. Minority shareholder of subsidiary
The company controlled by the minority shareholders
Jiangxi Meiji Enterprise Co., Ltd.
of the subsidiary
The company controlled by the minority shareholders
Jiangxi Xinzixin Real Estate Co., Ltd.
of the subsidiary
Close family members of minority shareholders of the
Dai Rongxing
subsidiary
232
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Names of other related parties Relationship with the Company
Zhejiang Donghong Asset Management Co., Ltd. Subsidiary of associated enterprise
AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise
Yantai Kangyue Investment Co., Ltd. Subsidiary of associated enterprise
Chongqing Lanlv Moma Real Estate Development Co., Ltd. Subsidiary of associated enterprise
Anhui Jiasen Precision Technology Co., Ltd. Subsidiary of associated enterprise
Chuzhou Jielunte Mould Plastic Co., Ltd. Subsidiary of associated enterprise
Guangdong Jielunte Technology Co., Ltd. Subsidiary of associated enterprise
Kunshan Jielunte Mould Plastic Co., Ltd. Subsidiary of associated enterprise
Dongguan Kangjie Plastic Mould Co., Ltd. Subsidiary of associated enterprise
Dongguan Jielunte Plastic Mould Technology Co., Ltd. Subsidiary of associated enterprise
Dongguan Xutongda Mould Plastic Co., Ltd. Subsidiary of associated enterprise
Shenzhen Kangying Storage Technology Co., Ltd. Subsidiary of associated enterprise
Shenzhen E-Display Commercial Display Service Co., Ltd. Subsidiary of associated enterprise
Konka E-Display (Hong Kong) Co., Ltd. Subsidiary of associated enterprise
Guangdong KONKA E-display Co., Ltd. Subsidiary of associated enterprise
Shanghai Jiyi Environmental Technology Co., Ltd. Subsidiary of associated enterprise
2. Related-party transactions
（1） Related party transactions involving the purchase and sale of goods and the supply and
acceptance of services
1） Purchasing goods/receiving services
Amount incurred in Amount incurred last
Related party Related party transaction
the current period period
Chuzhou Hanshang Electric Appliance Co., Ltd. Purchase of goods 114,880,089.88 186,735,395.72
Puchuang Jiakang Technology Co, Ltd. Purchase of goods 37,713,014.15 82,483,825.77
233
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred in Amount incurred last
Related party Related party transaction
the current period period
OCT Group Co., Ltd. and its subsidiaries and Purchase of goods and
26,734,696.17 19,556,218.59
associates services
Shenzhen Jielunte Technology Co., Ltd. and its
Purchase of goods 20,726,583.10 17,989,178.13
subsidiaries
Korea Electric Group Co., Ltd. and its subsidiaries Purchase of goods 12,003,676.60 13,962,407.67
Shenzhen KONKA E-display Co., Ltd. and its
Purchase of goods 4,407,128.66 10,289,325.37
subsidiaries
Dongguan Kangjia New Materials Technology Co.,
Purchase of goods 3,423,338.73 7,656,559.11
Ltd..
Dongguan Konka Smart Electronic Technology Co., Purchase of goods and
828,076.33 5,303,236.99
Ltd. services
HOHOELECTRICAL&FURNITURECO.,LIMITED Purchase of goods 26,341.27 5,279,694.58
Anhui Kaikai Shijie E-commerce Co., Ltd. and its
Purchase of goods 14,519,171.29
subsidiaries
KK Smartech Limited Purchase of goods 7,026,770.10
Zhejiang Kangying Semiconductor Technology Co.,
Ltd. and its subsidiaries (formerly: Shenzhen
Purchase of goods 4,317,763.40
Kangying Semiconductor Technology Co., Ltd.) and
its subsidiaries
Purchase of goods and
Subtotal of other related parties 23,017,795.17 6,384,913.67
services
（2） Information of sales of goods and provision of labour service
Related party transaction Amount incurred in the Amount incurred last
Related party
current period period
Sales of goods and
Chuzhou Hanshang Electric Appliance Co., Ltd. 182,689,651.25 87,808,617.20
provision of labour service
OCT Group Co., Ltd. and its subsidiaries and Sales of goods and
37,055,797.37 31,848,071.22
associates provision of labour service
Sales of goods and
Korea Electric Group Co., Ltd. and its subsidiaries 34,500,419.06 61,575,942.67
provision of labour service
Shenzhen KONKA E-display Co., Ltd. and its Sales of goods and
32,568,363.60 9,771,563.23
subsidiaries provision of labour service
Shenzhen Jielunte Technology Co., Ltd. and its Sales of goods and
10,781,688.86 31,298,689.17
subsidiaries and associates provision of labour service
Dongguan Konka Smart Electronic Technology Sales of goods and
3,647,313.53 5,049,897.52
Co., Ltd. provision of labour service
Zhejiang Kangying Semiconductor Technology
Co., Ltd. and its subsidiaries (formerly: Shenzhen Sales of goods and
2,427,251.90 5,789,685.32
Kangying Semiconductor Technology Co., Ltd.) provision of labour service
and its subsidiaries
234
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Related party transaction Amount incurred in the Amount incurred last
Related party
current period period
Shenzhen Aimijiakang Technology Co., Ltd. Sales of goods 633,048.19 1,453,563.03
Sales of goods and
Hefei KONSEMI Storage Technology Co., Ltd. 19,420.70 8,004,252.90
provision of labour service
E3info (Hainan) Technology Co., Ltd. and its Sales of goods and
1,714.00 9,168,670.42
subsidiaries provision of labour service
Sales of goods and
Subtotal of other related parties 5,085,298.73 51,872,181.94
provision of labour service
（3） Related party leases
Lease situation
Type of leased Lease fee recognised in Lease fee recognised last
Lessor Lessee
assets the current period period
Commercial
OCT Group Co. Ltd. and its Konka Ventures Development
subsidiaries (Shenzhen) Co., Ltd.
residences and 16,202,959.98 14,099,760.00
office buildings
Dongguan Guankang
Dongguan Konka
Yuhong Investment Co., Factory 6,841,431.94 22,799,157.95
Electronic Co., Ltd.
Ltd.
Commercial
OCT Group Co. Ltd. and its
subsidiaries
Konka Group Co., Ltd. residences and 351,831.90
office buildings
（4） Related party guarantees
1） The Company was guarantor
Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0,000) (RMB'0,000) completed
15 January 14 January
Boluo Precision 4,000.00 1,800.00 CNY No
2024 2025
25 August 25 August
Boluo Precision 4,500.00 2,773.86 CNY No
2023 2026
29 January 29 January
Boluo Precision 2,000.00 1,215.07 CNY No
2024 2025
31 January
Konka Circuit 10,000.00 3,735.16 CNY 19 July 2023 No
2027
22 December 22 December
Konka Circuit 5,000.00 889.04 CNY No
2023 2024
19 October 31 December
Anhui Tongchuang 10,000.00 7,840.00 CNY No
2023 2024
Anhui Tongchuang 5,000.00 4,980.00 CNY 20 June 2024 29 May 2025 No
20 November
Anhui Tongchuang 3,000.00 2,900.00 CNY 19 May 2025 No
2023
6 December
Anhui Tongchuang 5,000.00 980.00 CNY 20 May 2024 No
2024
235
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0,000) (RMB'0,000) completed
Konka Xinyun
6,000.00 2,800.00 CNY 26 May 2024 21 March 2026 No
Semiconductor
Konka Xinyun
8,277.66 4,281.25 CNY 12 July 2021 11 July 2022 No
Semiconductor
13 December 13 December
Chongqing Konka 38,000.00 13,730.92 CNY No
2022 2037
Electronics Technology 8,500.00 3,222.64 CNY 2 April 2024 22 March 2025 No
26 September 11 August
Electronics Technology 50,000.00 50,000.00 CNY No
2023 2024
Dongguan Konka 80,000.00 33,091.04 CNY 23 June 2021 7 May 2031 No
Telecommunication
7,500.00 1,761.23 CNY 23 July 2023 23 July 2024 No
Technology
Sichuan Konka 4,000.00 2,800.00 CNY 23 May 2023 26 April 2026 No
10 November 10 November
Mobile Interconnection 7,000.00 1,870.12 CNY No
2023 2024
Yibin Smart 980.00 980.00 CNY 27 March 2024 19 March 2025 No
Xi'an Kanghong Technology 31 December
30,000.00 8,145.16 CNY 26 May 2023 No
Industry 2032
24 January 7 November
Konka Hongye Electronics 19,010.00 5,079.56 CNY No
2024 2038
19 December 19 December
Konka Soft Electronic 975.00 34.55 CNY No
2022 2023
Ningbo Kanghr Electrical
6,000.00 1,881.83 CNY 2 March 2023 27 July 2024 No
Appliance
Ningbo Kanghr Electrical
6,000.00 3,000.00 CNY 13 July 2023 12 July 2024 No
Appliance
30 January 30 January
Frestec Smart Home 10,200.00 2,652.00 CNY No
2024 2027
15 August 14 August
Jiangxi Konka 6,000.00 1,400.00 CNY No
2023 2024
13 November 31 December
Yibin Kangrun 10,000.00 10,000.00 CNY No
2020 2024
31 August 31 August
Anhui Konka 5,500.00 4,820.76 CNY No
2023 2024
22 September 21 September
Anhui Konka 18,000.00 5,560.67 CNY No
2023 2024
10 August
Anhui Konka 10,215.95 8,021.11 CNY 15 July 2031 No
2021
29 October 26 October
Anhui Konka 7,000.00 4,000.00 CNY No
2021 2026
236
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0,000) (RMB'0,000) completed
24 October 26 October
Anhui Konka 7,000.00 4,000.00 CNY No
2022 2026
19 September 18 September
Anhui Konka 7,000.00 6,000.00 CNY No
2022 2023
Anhui Konka 5,000.00 4,843.82 CNY 25 June 2023 24 June 2028 No
Shandong Econ Technology 30 September 29 September
1,623.89 CNY No
Co., Ltd. 2022 2024
Shandong Econ Technology 23 November
2,748.12 177.92 CNY 23 May 2024 No
Co., Ltd. 2022
Shandong Econ Technology
1,498.97 1,498.97 CNY 22 May 2023 21 May 2024 No
Co., Ltd.
Shandong Econ Technology
4,996.58 4,388.00 CNY 5 July 2023 21 May 2024 No
Co., Ltd.
Shandong Econ Technology
2,498.29 2,435.11 CNY 19 July 2023 18 July 2024 No
Co., Ltd.
Shandong Econ Technology 28 August
999.32 847.42 CNY 11 June 2024 No
Co., Ltd. 2023
Shandong Econ Technology 29 December 28 December
1,374.06 1,374.06 CNY No
Co., Ltd. 2023 2024
Shandong Econ Technology 28 December 27 December
2,498.29 2,192.05 CNY No
Co., Ltd. 2023 2024
Shandong Econ Technology 6 February 5 February
124.91 124.91 CNY No
Co., Ltd. 2024 2025
Shandong Econ Technology 14 December
4,489.43 3,641.50 CNY 1 March 2024 No
Co., Ltd. 2024
Shandong Econ Technology
499.66 499.66 CNY 30 April 2024 23 April 2025 No
Co., Ltd.
8 September 8 September
OCT Group 60,000.00 60,000.00 CNY No
2022 2025
18 October 18 October
OCT Group 60,000.00 60,000.00 CNY No
2022 2025
29 January 29 January
OCT Group 150,000.00 150,000.00 CNY No
2024 2027
OCT Group 80,000.00 80,000.00 CNY 18 March 2024 18 March 2027 No
22 September 22 September
OCT Group 50,000.00 50,000.00 CNY No
2023 2026
237
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
guarantee guarantee Start date of Expiry date of the
Secured party Currency
amount amount guarantee guarantee guarantee is
(RMB'0,000) (RMB'0,000) completed
13 December 13 December
OCT Group 50,000.00 48,500.00 CNY No
2023 2026
OCT Group 50,000.00 50,000.00 CNY 26 March 2024 26 March 2027 No
OCT Group 60,000.00 60,000.00 CNY 25 June 2024 25 June 2026 No
2） As the secured party
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed
Konka Circuit 8,200.00 CNY 5 February 2024 4 February 2025 No
Suining Konka Industrial Park 32,800.00 CNY 5 February 2024 4 February 2025 No
OCT Group 80,000.00 CNY 9 July 2021 9 July 2024 No
8 September 8 September
OCT Group 60,000.00 CNY No
2022 2025
18 October
OCT Group 60,000.00 CNY 18 October 2022 No
2025
OCT Group 120,000.00 CNY 14 July 2022 14 July 2025 No
OCT Group 49,250.00 CNY 23 August 2022 22 August 2025 No
22 December 22 December
OCT Group 23,000.00 CNY No
2022 2025
OCT Group 56,000.00 CNY 18 January 2023 18 January 2026 No
22 September 22 September
OCT Group 50,000.00 CNY No
2023 2026
13 December 20 December
OCT Group 48,500.00 CNY No
2023 2026
OCT Group 50,000.00 CNY 26 March 2024 26 March 2027 No
OCT Group 60,000.00 CNY 25 June 2024 25 June 2026 No
OCT Group 150,000.00 CNY 29 January 2024 29 January 2027 No
OCT Group 80,000.00 CNY 18 March 2024 18 March 2027 No
Jiangxi Xinzixin Real Estate Co., Ltd. 686.00 CNY 15 August 2023 14 August 2024 No
13 November 31 December
Shandong Econ Technology Co., Ltd. 3,300.00 CNY No
2020 2024
Chuzhou State-owned Assets
1,060.57 CNY 31 August 2023 31 August 2024 No
Management Co., Ltd.
238
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed
Chuzhou State-owned Assets 22 September 21 September
1,223.35 CNY No
Management Co., Ltd. 2023 2024
Chuzhou State-owned Assets
1,764.64 CNY 10 August 2021 15 July 2031 No
Management Co., Ltd.
Chuzhou State-owned Assets 26 October
880.00 CNY 29 October 2021 No
Management Co., Ltd. 2026
Chuzhou State-owned Assets 26 October
880.00 CNY 24 October 2022 No
Management Co., Ltd. 2026
Chuzhou State-owned Assets 19 September 18 September
1,320.00 CNY No
Management Co., Ltd. 2022 2023
Chuzhou State-owned Assets
1,065.64 CNY 25 June 2023 24 June 2028 No
Management Co., Ltd.
31 December 31 December
Wu Guoren 875.00 USD No
2019 2024
31 December 31 December
Wu Guoren 2,425.00 USD No
2019 2024
31 December 31 December
Xiao Yongsong 840.00 USD No
2019 2024
31 December 31 December
Xiao Yongsong 2,328.00 USD No
2019 2024
Shenzhen Unifortune Supply Chain 31 December
1,391.60 USD 21 June 2021 No
Management Co., Ltd. 2022
Shenzhen Unifortune Supply Chain 31 December
867.30 USD 21 June 2021 No
Management Co., Ltd. 2022
31 December
Guizhou Huajinrun Technology Co. Ltd. 381.15 USD 1 January 2022 No
2025
31 December
Guizhou Huajinrun Technology Co. Ltd. 157.50 USD 1 January 2022 No
2025
Shenzhen Henglongtong Technology 31 December
241.40 USD 1 January 2022 No
Co., Ltd. 2025
Shenzhen Henglongtong Technology 31 December
99.75 USD 1 January 2022 No
Co., Ltd. 2025
10 November 31 December
AUJET INDUSTRY LIMITED 3,227.63 USD No
2021 2023
10 November 31 December
AUJET INDUSTRY LIMITED 89.18 USD No
2021 2023
31 December
AUJET INDUSTRY LIMITED 1,029.00 USD 20 July 2020 No
2023
14 October
Zhu Xinming 12,446.00 CNY 15 October 2022 No
2023
239
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed
31 December
Zhu Xinming 3,399.49 CNY 1 January 2023 No
2023
19 February 18 February
Zhu Xinming 13,249.19 CNY No
2023 2024
28 February
Zhu Xinming 6,860.00 CNY 1 March 2023 No
2024
Zhu Xinming 2,330.54 CNY 9 March 2023 8 March 2024 No
30 September
Zhu Xinming 2,156.00 CNY 1 April 2023 No
2023
31 December
Zhu Xinming 443.45 CNY 13 January 2023 No
2023
31 December
Zhu Xinming 44.05 CNY 30 March 2023 No
2023
31 December
Zhu Xinming 443.45 CNY 14 April 2023 No
2023
31 December
Zhu Xinming 44.05 CNY 30 June 2023 No
2023
31 December
Zhu Xinming 443.45 CNY 14 July 2023 No
2023
31 December
Zhu Xinming 44.05 CNY 11 October 2023 No
2023
31 December
Zhu Xinming 149.45 CNY 13 October 2023 No
2023
29 December 31 December
Zhu Xinming 44.05 CNY No
2023 2023
28 February 27 February
Zhu Xinming 490.00 CNY No
2023 2024
31 December
Zhu Xinming 5,109.05 CNY 1 January 2023 No
2023
31 December
Zhu Xinming 252.63 CNY 13 January 2023 No
2023
31 December
Zhu Xinming 101.77 CNY 13 January 2023 No
2023
31 December
Zhu Xinming 203.63 CNY 14 April 2023 No
2023
31 December
Zhu Xinming 1,862.90 CNY 1 January 2023 No
2023
17 February 31 December
Zhu Xinming 223.85 CNY No
2023 2023
31 December
Zhu Xinming 93.12 CNY 8 March 2023 No
2023
31 December
Zhu Xinming 101.35 CNY 19 May 2023 No
2023
31 December
Zhu Xinming 93.12 CNY 8 June 2023 No
2023
8 September 31 December
Zhu Xinming 93.12 CNY No
2023 2023
240
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed
7 December 31 December
Zhu Xinming 62.25 CNY No
2023 2023
Jiangxi Konka 13,431.31 CNY 15 June 2023 8 March 2027 No
Jiangxi High Transparent Substrate 38,045.57 CNY 15 June 2023 19 March 2027 No
Jiangxi High Transparent Substrate 258.80 CNY 28 April 2024 6 March 2030 No
31 December
Xinfeng Microcrystalline 34,475.18 CNY 15 June 2023 No
2025
31 December
Hu Zehong, Liang Ruiling, Dai Yaojin 2,205.00 CNY 1 July 2018 No
2025
31 December
Hu Zehong, Liang Ruiling, Dai Yaojin 4,899.02 CNY 1 July 2018 No
2025
31 December
XingDa HongYe 6,591.25 CNY 1 January 2022 No
2026
31 December
XingDa HongYe 5,366.40 CNY 1 January 2022 No
2026
31 December
XingDa HongYe 3,124.68 CNY 1 January 2022 No
2026
Suiyong Rongxin Asset Management
2,450.00 CNY 1 January 2018 30 June 2024 No
Co., Ltd.
Suiyong Rongxin Asset Management 31 December
2,842.00 CNY 1 January 2018 No
Co., Ltd. 2024
Shenzhen Henglongtong Technology
Co., Ltd., Guizhou Huajinrun
Technology Co. Ltd., Huaying Gaokede
31 December
Electronics Technology Co., Ltd., 735.00 CNY 1 January 2022 No
2025
Huaying Gaokelong Electronics
Technology Co., Ltd., Shenzhen Baili
Yongxing Technology Co., Ltd.
Shenzhen Henglongtong Technology
Co., Ltd., Guizhou Huajinrun
Technology Co. Ltd., Huaying Gaokede
31 December
Electronics Technology Co., Ltd., 488.37 CNY 1 January 2022 No
2025
Huaying Gaokelong Electronics
Technology Co., Ltd., Shenzhen Baili
Yongxing Technology Co., Ltd.
Shenzhen Henglongtong Technology
Co., Ltd., Guizhou Huajinrun
Technology Co. Ltd., Huaying Gaokede
31 December
Electronics Technology Co., Ltd., 552.72 CNY 1 January 2022 No
2025
Huaying Gaokelong Electronics
Technology Co., Ltd., Shenzhen Baili
Yongxing Technology Co., Ltd.
Chuzhou Hanshang Electric Appliance
4,533.96 CNY 20 May 2021 19 May 2024 No
Co., Ltd.
Shenzhen Qianhai Datang Technology 17 November 16 November
441.00 CNY No
Co., Ltd. 2023 2026
241
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Start date of Expiry date of
Guarantor amount Currency guarantee is
guarantee guarantee
(RMB'0,000) completed
15 December 5 November
Konka Ventures 1,322.54 CNY No
2021 2022
（5） Loans from/to related parties
Amount
Related party Currency Start date Maturity
(RMB'0,000)
Borrowing:
OCT Group 81,091.00 CNY 10 January 2022 9 January 2025
OCT Group 50,000.00 CNY 19 May 2022 18 May 2025
OCT Group 70,000.00 CNY 26 May 2022 25 May 2025
Chuzhou Hanshang Electric Appliance Co.,
12,862.50 CNY 1 January 2024 31 December 2024
Ltd.
Chuzhou Hanshang Electric Appliance Co.,
2,450.00 CNY 2 August 2023 2 August 2024
Ltd.
Chuzhou Hanshang Electric Appliance Co.,
980.00 CNY 14 February 2024 13 February 2025
Ltd.
Shandong Econ Technology Co., Ltd. 1,914.00 CNY 20 March 2024 19 March 2025
Kangkong Venture Capital (Shenzhen) Co.,
245.00 CNY 21 July 2022 18 July 2024
Ltd.
Beijing Xuri Shengxing Technology Co.,
228.67 CNY 5 December 2022 30 November 2024
Ltd.
Total 219,771.17
Lending:
Dongguan Guankang Yuhong Investment
19,600.00 CNY 25 September 2023 24 September 2024
Co., Ltd.
Chuzhou Kangxin Health Industry
38,974.77 CNY 22 December 2023 21 December 2024
Development Co., Ltd.
Chuzhou Kangxin Health Industry
562.97 CNY 22 December 2023 21 December 2024
Development Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 14,724.50 CNY 21 January 2022 15 April 2025
Yantai Kangyue Investment Co., Ltd. 12,852.70 CNY 16 December 2020 5 November 2022
Yantai Kangyun Industrial Development 22,600.00 CNY 31 March 2024 31 March 2025
242
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount
Related party Currency Start date Maturity
(RMB'0,000)
Co., Ltd.
Chongqing Lanlv Moma Real Estate
18,843.00 CNY 25 November 2020 24 November 2023
Development Co., Ltd.
Sichuan Hongxinchen Real Estate
19,879.55 CNY 15 September 2022 27 February 2025
Development Co., Ltd.
Shandong Econ Technology Co., Ltd. 18,315.11 CNY 1 January 2024 20 December 2024
Shandong Econ Technology Co., Ltd. 4,996.58 CNY 21 December 2023 20 December 2024
Total 171,349.18
（6） Asset transfer and debt restructuring of related parties
Amount incurred in the
Related party Related party transaction Amount incurred last period
current period
OCT Group Co., Ltd. and its Transfer of patents, software
subsidiaries and associates copyrights and trademarks
Total
（7） Remuneration for key management personnel
The current period
Project Last period (RMB'0,000)
(RMB'0,000)
Total remuneration 316.25 549.95
3. Balance of amount receivable and payable by related parties
（1） Receivables
Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts receivable:
Shenzhen Yaode
Technology Co., Ltd. and 146,468,551.71 146,468,551.71 145,562,210.29 145,562,210.29
its subsidiaries
HOHOELECTRICAL&FU
124,921,878.75 65,316,911.35 124,378,346.69 51,863,807.49
RNITURECO.,LIMITED
OCT Group Co., Ltd. and
its subsidiaries and 95,069,787.49 15,682,476.73 100,590,722.52 15,162,359.88
associates
Chuzhou Hanshang Electric
84,328,956.54 909,014.49 38,536,165.52 786,137.78
Appliance Co., Ltd.
243
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts
Anhui Kaikai Shijie E-
commerce Co., Ltd. and its 46,725,631.12 3,055,744.43 60,994,542.80 1,879,460.35
subsidiaries
Shenzhen Kanghongxing
Intelligent Technology Co., 39,230,506.73 39,222,383.06 39,226,376.64 39,214,097.96
Ltd.
Shenzhen Jielunte
Technology Co., Ltd. and
10,934,260.72 223,058.92 8,538,236.25 173,326.20
its subsidiaries and
associates
Shenzhen Konda E-display
Co., Ltd. and its 4,566,869.61 414,217.51 2,038,868.80 130,671.94
subsidiaries
Subtotal of other related
19,774,344.27 4,702,381.95 36,068,461.04 4,978,006.25
parties
Total 572,020,786.94 275,994,740.15 555,933,930.56 259,750,078.15
Financing accounts
receivable/Notes
receivable:
Korea Electric Group Co.,
10,000,000.00
Ltd. and its subsidiaries
Chuzhou Hanshang Electric
10,000,000.00
Appliance Co., Ltd.
Total 20,000,000.00
Dividends receivable
Wuhan Tianyuan
Environmental Protection 10,465,200.00
Co., Ltd.
Chutian Dragon Co., Ltd. 4,240,444.62
Shenzhen Jielunte
941,482.38
Technology Co., Ltd.
Total 14,705,644.62 941,482.38
Other receivables:
Yantai Kangyue Investment
175,910,620.67 18,682,100.00
Co., Ltd.
Dai Rongxing 87,692,767.03 87,692,767.03 86,150,945.74 86,150,945.74
Shenzhen Kanghongxing
Intelligent Technology Co., 39,888,921.64 39,888,921.64 39,888,921.64 39,888,921.64
Ltd.
OCT Group Co., Ltd. and
its subsidiaries and 30,343,358.95 20,542,421.70 31,185,288.31 20,608,710.48
associates
244
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts
Dongguan Guankang
Yuhong Investment Co., 22,000,000.00 660,000.00 22,000,000.00 660,000.00
Ltd.
HOHOELECTRICAL&FU
2,500,687.22 1,622,445.87 2,485,213.19 1,612,406.32
RNITURECO.,LIMITED
Hu Zehong 977,294.24 94,287.93 1,395,042.29 135,057.89
Jiangxi Meiji Enterprise
93,512,640.31 93,512,640.31
Co., Ltd.
Huanjia Group Co., Ltd. 25,083,675.53 24,582,002.02
Subtotal of other related
225,666.72 6,726.05 145,049.83 2,993.94
parties
Total 359,539,316.47 169,189,670.22 301,846,776.84 267,153,678.34
Prepayments:
Puchuang Jiakang
10,596,705.00
Technology Co, Ltd.
OCT Group Co., Ltd. and
75,511.22
its subsidiaries and 238,185.12
associates
Shenzhen Jielunte
Technology Co., Ltd. and 7,764.63
its subsidiaries
Subtotal of other related
187,017.99
parties
Total 10,859,234.21 245,949.75
Other current assets:
Chuzhou Kangxin Health
Industry Development Co., 412,246,840.52 396,256,021.05
Ltd.
Yantai Kangyun Industrial
265,592,911.14 256,452,466.70
Development Co., Ltd.
Chongqing Lanlv Moma
Real Estate Development 243,451,559.91 235,830,613.25
Co., Ltd.
Sichuan Hongxinchen Real
Estate Development Co., 236,192,420.65 228,799,064.74
Ltd.
Shandong Econ
Technology Co., Ltd. and 234,271,017.20 233,116,949.03
its subsidiaries
245
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Provision for bad Provision for bad
Book balance Book balance
debts debts
Dongguan Guankang
Yuhong Investment Co., 223,229,933.65 224,838,028.99
Ltd.
Sichuan Chengrui Real
174,432,231.04 168,476,988.84
Estate Co., Ltd.
Yantai Kangyue Investment
170,712,417.56 18,682,100.00
Co., Ltd.
Total 1,789,416,914.11 1,914,482,550.16 18,682,100.00
（2） Payables
Book balance at the end of Book balance at the
Related party
the period beginning of the period
Accounts payable:
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries and
31,049,279.87 33,987,442.17
associates
OCT Group Co., Ltd. and its subsidiaries and associates 27,725,955.80 28,693,864.79
Chuzhou Hanshang Electric Appliance Co., Ltd. 24,759,143.98 43,592,692.34
Shenzhen Konda E-display Co., Ltd. and its subsidiaries 14,723,403.30 10,343,033.76
HOHOELECTRICAL&FURNITURECO.,LIMITED 6,635,707.92 10,195,877.56
Korea Electric Group Co., Ltd. and its subsidiaries 6,562,139.19 4,374,416.65
Anhui Kaikai Shijie E-commerce Co., Ltd. and its subsidiaries 4,326,148.17 4,614,860.81
Panxu Intelligence Co., Ltd. and its subsidiaries 2,092,771.45 3,558,734.12
Dongguan Konka Smart Electronic Technology Co., Ltd. 485,152.86 288,114.11
Subtotal of other related parties 51,590,105.78 62,595,100.98
Total 169,949,808.32 202,244,137.29
Notes payable:
Dongguan Kangjia New Materials Technology Co., Ltd. 5,208,249.77 4,352,821.66
Korea Electric Group Co., Ltd. and its subsidiaries 2,948,260.34 4,709,353.26
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries 2,687,124.58 916,829.48
Panxu Intelligence Co., Ltd. and its subsidiaries 1,962,738.39
Total 10,843,634.69 11,941,742.79
Contractual liabilities/other current liabilities:
246
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Book balance at the end of Book balance at the
Related party
the period beginning of the period
OCT Group Co., Ltd. and its subsidiaries and associates 42,855,945.24 43,675,417.58
Shenzhen Konda E-display Co., Ltd. and its subsidiaries 8,184,562.22 28,903,907.67
Shandong Kangfei Intelligent Electrical Appliances Co., Ltd. 187,981.82 246,708.55
Shenzhen Aimijiakang Technology Co., Ltd. 2,191.50 1,030,654.81
Subtotal of other related parties 5,086,921.84 1,412,447.04
Total 56,317,602.62 75,269,135.65
Other payables:
Chuzhou Hanshang Electric Appliance Co., Ltd. 206,345,489.22 195,705,860.89
Shandong Econ Technology Co., Ltd. and its subsidiaries 19,369,484.27 42,146,282.34
OCT Group Co., Ltd. and its subsidiaries and associates 15,996,696.01 23,291,255.06
Central Enterprises in poverty-stricken areas (Jiangxi) Industrial
12,000,000.00 9,600,000.00
Investment Funds Partnership (L.P.)
Beijing Xuri Shengxing Technology Co., Ltd. 2,605,409.66 2,536,047.85
Konka Ventures Development (Shenzhen) Co., Ltd. 2,486,649.34 2,523,500.05
Chongqing Kangjian Optoelectronics Technology Co., Ltd. 500,000.00
Dongguan Kangjia New Materials Technology Co., Ltd. 410,526.24 410,526.24
E3info (Hainan) Technology Co., Ltd. and its subsidiaries and
10,328.48 63,099.88
associated enterprises
Subtotal of other related parties 18,282,012.76 11,052,687.80
Total 278,006,595.98 287,329,260.11
4. Related party commitments
The Group did not have any related party commitments.
5. Others
The Group did not have any related party matters.
XIV. Commitments and Contingencies
1. Significant commitments
（1）Capital commitments
247
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Contract signed but hasn't been recognised in
financial statements
Commitment on construction and purchase of long-
32,718,400.00
lived assets
Large amount contract 248,842,082.25 295,615,545.67
Foreign investment commitments
Total 281,560,482.25 295,615,545.67
（2）Other commitments
As of 30 June 2024, there were no other significant commitments for the Company to disclose.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) Before the Company acquired Jiangxi Konka , Jiangxi Konka and its subsidiaries Xinfeng Microcrystalline
and Jiangxi High Transparent Substrate (formerly known as Nano-Crystallised 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 , 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, Jiangxi High Transparent Substrate and Xinfeng Microcrystalline to bear joint and
several liability for such debts.
On 31 October 2019, the Higher People's Court of Jiangxi Province 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-Crystallised Glass, Xinfeng Microcrystalline should bear joint and several
liability for all debts recognised in this judgment. The defendants appealed against the verdict of the first
instance and the Supreme People's Court accepted the appeal. On 24 March 2021, the Supreme People's Court
made the following ruling: I. Civil Judgment (2018) G.M.CH. No. 110 made by the Higher People's Court of
Jiangxi Province is abrogated; II. This case is remanded to the Higher People's Court of Jiangxi Province for
retrial. As of the date of issuance of this report, the first instance of the retrial was decided, an appeal had been
filed, and the second instance of the retrial is in progress.
The actual controller of Jiangxi Konka New Materials, Zhu Xinming, and his spouse, Leng Sumin, Jiangxi
248
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Xinzixin Real Estate Co., Ltd., Zhu Zilong, Zhu Qingming and Zeng Xiaohong, as guarantors, provided a total
of approximately RMB143 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 nanometre 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 approximately RMB243 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 honoured.
(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 22 November 2021, the Company
applied to the People's Court of Nanshan District, Shenzhen, for property preservation. On 11 January 2023, the
People's Court of Nanshan District, Shenzhen, rendered a verdict of the first instance, ruling that Luo Zaotong,
Luo Jingxia, Luo Zongyin and Luo Zongwu pay the repurchase amount of RMB172 million plus the sum of
interest calculated at 12% per annum from 6 April 2017 to the date of payment of the equity repurchase by the
defendant Luo Zaotong, Luo Jingxia, Luo Zongyin and Luo Zongwu. As of the date of issuance of this report,
the case was executed in progress.
(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 RMB200 million 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 of the date of issuance of this report, the case was closed.
(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 the
Wuhan Intermediate People's Court, and the court ordered the defendant to pay Konka Group the principal
amount of the note of RMB200 million and relevant overdue interest. The defendant applied for retrial during
the execution of the case. As of the date of issuance of this report, the case was in retrial.
(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 8 September 2022, the court issued a judgment in favour of the Company's subsidiary. As
of the date of issuance of this report, the case was executed in progress.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the Company, as the
plaintiff, filed a lawsuit with 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
249
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
liquidated damage and interest. As of the date of issuance of this report, the case was executed in progress.
(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. (defendants) over contracts is RMB380 million. As of
the date of issuance of this report, the portion of the case, related to Xinfei and Meisen, was in trial, while the
rest case was executed in progress.
(8) 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 (defendants) over sales and purchase contracts is RMB90 million. In December 2020
the Company filed a lawsuit with the court and obtained a judgment in its favour in June 2023. As of the date of
issuance of this report, the case was executed in progress.
(9) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the Company, as the
plaintiff, filed a lawsuit with 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 of the date of
issuance of this report, the case was executed in progress.
(10) The amount of the subject matter involved in the dispute between the Company's subsidiary Konka
Electronic Materials (formerly known as 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 1 September 1 2021, the Intermediate
People's Court of Xiamen Municipality, Fujian Province, 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 was executed in progress.
(11) 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. (defendants) over the right of
recourse for bills is RMB50 million and the corresponding interest. In September 2018, the company filed a
lawsuit with the Shenzhen Intermediate People's Court, and the court has preserved the defendant's
corresponding property. As of the date of issuance of this report, the case was executed in progress.
(12) 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 7 December 2021, Anhui Konka filed arbitration with the Shenzhen Court of International
Arbitration. On 14 October 2022, the compulsory enforcement was filed. As of the date of issuance of this
report, the case was executed in progress.
(13) 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.
(defendants) over freight forwarding contracts in maritime and open sea waters is RMB38 million. On 26 April
250
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
2021, Konka applied to Shanghai Maritime Court for compulsory execution. On 7 June 2021, the court accepted
the case. As of the date of issuance of this report, the case was executed in progress.
(14) The amount of the subject matter involved in the dispute between the Company's subsidiary Pengrun
Technology (plaintiff) and Guangan Ou Qi Shi Electronic Technology Co., Ltd., Guan Hongshao, Huaying
Gaokede Electronic Technology Co., Ltd., Huaying Gaokelong Electronic Technology Co., Ltd., Guizhou
Jiaguida Technology Co., Ltd., Sichuan Hongrongyuan Real Estate Co., Ltd., Du Xinyu, Linbolong and Wang
Shisheng (defendants) over trust contract is RMB167 million. The case has been applied for property
preservation measures. As of the date of issuance of this report, the case was executed in progress.
(15) The amount of the subject matter involved in the dispute between the Company (plaintiff) and Yantai
Kangyue Investment Co., Ltd. (defendant) over borrowing contract is RMB160 million. The Company has
applied to the Shenzhen Intermediate People's Court for property preservation. As of the date of issuance of this
report, the case was executed in progress.
(16) The amount of the subject matter involved in the dispute between the Company's subsidiary Jiaxin
Technology Co., Limited (plaintiff) and Tripod Electronics Technology (HongKong) Limited, Chen Wenhuan
and Chen Baohong (defendants) over a sales and purchase contract of international goods is RMB51 million. As
of the date of issuance of this report, the case was under trial.
(17) In the case of contract dispute between the Company (plaintiff), Zhu Xinming, Leng Sumin, Gongqingcheng
BRIC Investment Management Partnership (limited partnership) and Gongqingcheng Xinrui Investment
Management Partnership (Limited partnership) (defendant), due to the failure of the other party to pay
performance compensation as agreed, the Company filed an arbitration with the Shenzhen International
Arbitration Court in June 2023. The amount of the subject matter involved in the lawsuit is RMB939,044,100. As
of the date of issuance of this report, the case was under trial.
(18) In the case of contract dispute between the Company's subsidiaries, Konka Lifeng (Plaintiff) and Shenzhen
Junxing Communication Technology Co., Ltd., Gu Mei Electronics (Hong Kong) Technology Co., Ltd.,
Shenzhen Hongxing Fengda Industrial Development Co., Ltd., Shenzhen Junxing Junye Electronics Co., Ltd.,
Zeng Jiankai, Zhang Zhenyu, Haiying Technology Group (Hong Kong) Co., Ltd., Zhang Lixia, Anhui Baolin
Industry Co., Ltd., Zeng Qingpeng, Zhong Yuhua (Defendant), the subject matter of the lawsuit is
RMB262,711,100. As of the date of issue of this report, the case was under trial.
(19) Shenzhen Nianhua (plaintiff), a subsidiary of the Company, filed an arbitration with the Shenzhen
International Arbitration Court in March 2023 in a share repurchase dispute with Fang Xianglong and Jiang Yan
(defendant), due to the other party's failure to repurchase the share and pay the repurchase price as agreed. The
subject matter of the lawsuit is RMB151,605,500. As of the date of issue of this report, the case was under
implementation.
(20) The amount of the subject matter involved in the dispute between the Company's subsidiary Sichuan
Konka (plaintiff) and Shenzhen Junxing Communication Technology Co., Ltd., Shenzhen Hongxing Fengda
Industrial Development Co., Ltd., Shenzhen Junxing Junye Electronics Co., Ltd., Liuyang Huichuan Heyuan
Villa Co., Ltd., Zeng Jiankai, Zhong Yuhua (defendant) over a sales and purchase contract is RMB51.72 million.
As of the date of issuance of this report, the case was under implementation.
(21) The Company (plaintiff) filed a lawsuit with the Nanshan District People's Court of Shenzhen in May 2023
251
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
concerning the equity transfer contract dispute with Longrui Haoteng Technology Development Co., Ltd.,
Beijing Beida Blue Bird Security System Engineering Technology Co., Ltd., and Beijing Jingrui Haoteng
Technology Development Co., Ltd. (Defendant) due to the failure of the other party to pay the balance of the
equity transfer as agreed. The subject matter involved amounted to RMB45.4076 million. As of the date of issue
of this report, the case was under implementation.
(22) The amount of the subject matter involved in the dispute between Shenzhen Oriental Venture Capital
Investment Co., Ltd. (plaintiff) and the Company (defendant) over a contract is RMB750 million. As of the date
of issuance of this report, the case was under trial.
(23) The amount of the subject matter involved in the dispute between Sichuan Shuwu Guangrun logistics Co.,
Ltd. (plaintiff) and the Company's subsidiary Dongguan Konka (defendants) over a sales and purchase contract
is RMB122,834,600. As of the date of issuance of this report, the case was under trial.
XV. Subsequent Events after the Balance Sheet Date
1. Important non-adjusting matters
The Group had no significant non-adjusting matters to disclose as of the date of this financial report.
2. Sales return
As of the date of this financial report, the Group had no material sales returns.
3. Notes to other subsequent events after the balance sheet date
Except for the above disclosure of matters after the balance sheet date, the Group did not have any other
significant events after the balance sheet date.
XVI. Other Key Matters
As Konka Huanjia, a subsidiary of the Company, was unable to repay its debts as they matured and its assets
were insufficient to repay all of its debts, the Company filed an application with the People's Court of Ganjizi
District, Dalian City, Liaoning Province (the "Dalian Ganjingzi District Court") for the bankruptcy and
liquidation of Konka Huanjia on 28 February 2024. On 29 February 2024, the Dalian Ganjingzi District Court
decided in accordance with the law to accept the Company's application. On 14 March 2024, the Dalian
Ganjingzi District Court appointed Shanghai SGLA (Dalian) Law Firm to act as the administrator (hereinafter
referred to as the "Administrator") of the bankruptcy and liquidation case of Kangjia Huanjia. On 15 March
2024, the Administrator took over the relevant information and physical objects of Konka Huanjia. The
Company no longer exercises control over Konka Huanjia since 15 March 2024.
Apart from the above matters, the Group had no other significant transactions and events that had an impact on
investors' decision-making that needed to be disclosed.
XVII. Notes to the Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
（1） Accounts receivable listed by aging portfolio
252
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Book balance at the beginning of the
Aging Book balance at the end of the period
period
Within one year (inclusive) 1,576,900,729.92 1,206,382,965.89
One to two years 1,224,353,927.73 1,471,518,725.52
Two to three years 280,813,815.55 116,480,162.93
Three to four years 61,088,778.22 58,805,217.49
Four to five years 13,205,337.48 122,821,401.69
Over five years 825,400,530.17 806,589,292.93
Total 3,981,763,119.07 3,782,597,766.45
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Accounts receivable of
expected credit losses 752,374,855.73 18.90 708,515,174.55 94.17 43,859,681.18
withdrawn individually
Accounts receivable of
expected credit losses
withdrawn by portfolio
Of which: Aging portfolio 322,883,164.84 8.10 166,335,392.46 51.52 156,547,772.38
Grouping of related parties 2,906,505,098.50 73.00 2,906,505,098.50
Subtotal of portfolio 3,229,388,263.34 81.10 166,335,392.46 5.15 3,063,052,870.88
Total 3,981,763,119.07 100.00 874,850,567.01 21.97 3,106,912,552.06
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Accounts receivable of 752,763,517.97 19.90 708,873,222.27 94.17 43,890,295.70
253
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
expected credit losses
withdrawn individually
Accounts receivable of
expected credit losses
withdrawn by portfolio
Of which: Aging portfolio 355,972,586.88 9.41 166,216,118.67 46.69 189,756,468.21
Grouping of related parties 2,673,861,661.60 70.69 2,673,861,661.60
Subtotal of portfolio 3,029,834,248.48 80.10 166,216,118.67 5.49 2,863,618,129.81
Total 3,782,597,766.45 100.00 875,089,340.94 23.13 2,907,508,425.51
1） Provision set aside for bad debts of accounts receivable by single item
Closing balance
Name Provision
Reasons for the
Book balance Provision for bad debts percentage
provision
(%)
Shanghai Huaxin International Group Expected to be
298,855,950.30 292,878,831.29 98.00
Co., Ltd. difficult to recover
Hongtu Sanbao High-tech Technology Expected to be
200,000,000.00 180,000,000.00 90.00
Co., Ltd. difficult to recover
Zhongfu Tiangong Construction Group Expected to be
71,289,096.65 53,466,822.49 75.00
Co., Ltd. difficult to recover
CCCC First Harbor Engineering Not expected to be
55,438,105.00 55,438,105.00 100.00
Company Ltd. recoverable
Not expected to be
China Energy Power Fuel Co., Ltd. 49,993,564.16 49,993,564.16 100.00
recoverable
Shenzhen Kanghongxing Intelligent Not expected to be
36,900,685.94 36,900,685.94 100.00
Technology Co., Ltd. recoverable
Expected to be
Others 39,897,453.68 39,837,165.67 99.85
difficult to recover
Total 752,374,855.73 708,515,174.55 94.17
2） Provision for bad debts for accounts receivable made as per portfolio
254
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
①In the portfolio, accounts receivable of provision for expected credit loss made by aging
Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)
Within one year 112,395,876.40 2,292,875.89 2.04
One to two years 5,187.00 519.74 10.02
Two to three years 59,706,366.00 13,547,374.44 22.69
Three to four years 800,435.79 519,322.74 64.88
Four to five years 171,776.01 171,776.01 100.00
Over five years 149,803,523.64 149,803,523.64 100.00
Total 322,883,164.84 166,335,392.46 51.52
②In the portfolio, accounts receivable of provision for expected credit loss made by other methods
Closing balance
Aging
Provision for bad Provision percentage
Book balance
debts (%)
Grouping of related parties 2,906,505,098.50
Total 2,906,505,098.50
（3） Provision for bad debts of accounts receivable set aside, recovered or reclassified in the
current period
Change in the current period
Category Opening balance
Recovery or
Provision
reclassification
Provision for bad debts of accounts
875,089,340.94 301,481.02 540,254.95
receivable
Total 875,089,340.94 301,481.02 540,254.95
(Continued)
Change in the current period
Category Closing balance
Decrease for other
Charge-off or write-off
reasons
255
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Change in the current period
Category Closing balance
Decrease for other
Charge-off or write-off
reasons
Provision for bad debts of accounts
874,850,567.01
receivable
Total 874,850,567.01
There were no provisions for bad debts with significant amounts to be recovered or classified in the Reporting
Period.
（4） Accounts receivable actually written off in the current period
There were no accounts receivable actually written off in the current period.
（5） Top five accounts receivable and contract assets in the closing balance categorised by debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the current
period was RMB3,055,758,056.02, accounting for 76.74% of the total closing balance of accounts receivable.
The total closing balance of provision for bad debts correspondingly set aside was RMB472,878,831.29.
2. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 7,098,359.12 6,325,400.49
Dividends receivable 410,736,627.52 395,209,709.13
Other receivables 7,584,889,286.80 7,560,988,861.81
Total 8,002,724,273.44 7,962,523,971.43
2.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 7,098,359.12 6,325,400.49
Total 7,098,359.12 6,325,400.49
2.2 Dividends receivable
Item Closing balance Opening balance
Hong Kong Konka 116,030,982.90 115,209,709.13
256
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Suining Konka Industrial Park 280,000,000.00 280,000,000.00
Chutian Dragon Co., Ltd. 4,240,444.62
Wuhan Tianyuan Environmental Protection Co.,
10,465,200.00
Ltd.
Total 410,736,627.52 395,209,709.13
2.3 Other receivables
（1） Classified by account nature
Book balance at the end of the Book balance at the beginning of the
Nature of fund
period period
Intercourse funds among subsidiaries 7,397,162,611.22 9,069,786,800.21
Energy-saving subsidies receivable 141,549,150.00 141,549,150.00
Intercourse funds with other related parties 2,024,073,267.21 235,267,733.09
Deposit, security deposit, deposit 11,713,898.17 12,721,943.88
Others 20,112,856.02 99,060,310.98
Total 9,594,611,782.62 9,558,385,938.16
（2） Other receivables listed by aging
Book balance at the end of the Book balance at the beginning of the
Aging
period period
Within one year (inclusive) 2,451,928,731.79 5,210,348,063.16
One to two years 2,602,382,126.67 2,145,922,239.93
Two to three years 2,236,964,599.17 198,105,811.44
Three to four years 425,321,765.69 439,082,181.54
Four to five years 322,010,578.45 1,004,762,554.22
Over five years 1,556,003,980.85 560,165,087.87
Total 9,594,611,782.62 9,558,385,938.16
（3） Classified presentation of other receivables by provisioning methods of bad debts
257
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Other receivables of
expected credit
2,115,468,102.06 22.05 1,958,223,301.39 92.57 157,244,800.67
losses set aside by
single item
Other receivables of
provision for bad
debts set aside by
credit risk
characteristic
portfolio:
Aging portfolio 69,725,271.20 0.73 47,479,729.45 68.10 22,245,541.75
Low-risk portfolio 12,255,798.14 0.13 4,019,464.98 32.80 8,236,333.16
Grouping of related
7,397,162,611.22 77.09 7,397,162,611.22
parties
Subtotal of portfolio 7,479,143,680.56 77.95 51,499,194.43 0.69 7,427,644,486.13
Total 9,594,611,782.62 100.00 2,009,722,495.82 20.95 7,584,889,286.80
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Other receivables
of expected credit
2,110,298,248.95 22.08 1,958,251,651.39 92.80 152,046,597.56
losses set aside by
single item
Other receivables
of provision for
bad debts set
aside by credit
risk characteristic
portfolio:
Aging portfolio 84,338,231.39 0.88 32,163,233.75 38.14 52,174,997.64
Low-risk 16,543,239.09 0.17 6,982,191.21 42.21 9,561,047.88
258
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
portfolio
Grouping of
7,347,206,218.73 76.87 7,347,206,218.73
related parties
Subtotal of
7,448,087,689.21 77.92 39,145,424.96 0.53 7,408,942,264.25
portfolio
Total 9,558,385,938.16 100.00 1,997,397,076.35 20.90 7,560,988,861.81
1） Provision set aside for bad debts of other receivables by the general expected credit loss model
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Provision for bad debts Expected credit during the whole during the whole Total
loss for the next outstanding maturity outstanding maturity
12 months (without credit (with credit
impairment) impairment)
Balance as of 1 January 2024 841,697.01 38,303,727.95 1,958,251,651.39 1,997,397,076.35
Balance as of 1 January 2024 in
-294,559.25 294,559.25
the current year
-- Transferred to Phase II -294,559.25 294,559.25
-- Transferred to Phase III
-- Reclassified under Phase II
-- Reclassified under Phase I
Provision in the current period 12,698,964.19 12,698,964.19
Recovery in the current period 345,203.80 28,350.00 373,553.80
Charge-off in the current period
Write-off in the current period
Other changes 9.08 9.08
Balance as at 30 June 2024 201,933.96 51,297,260.47 1,958,223,301.39 2,009,722,495.82
259
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
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 one 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 one 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.
（4） Provision for bad debts of other receivables set aside, recovered or reclassified in the current
period
The amount of provision for bad debts in the current period was RMB12,325,410.39.
（5） Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
（6） Other receivables with top five year-end balances categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the current period
was RMB6,558,102,802.54, accounting for 68.35% of the total closing balance of other receivables. The total
closing balance of provision for bad debts correspondingly set aside was RMB1,744,736,434.49.
3. Long-term equity investment
Closing balance Opening balance
Item
Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Investment
in 7,068,025,423.9 6,378,345,423.9 7,156,825,933.9 6,375,345,933.9
689,680,000.00 781,480,000.00
subsidiarie 8 8 8 8
s
Investment
in
associated 2,347,583,606.0 1,954,028,706.0 2,279,596,484.2 1,977,841,584.1
393,554,900.04 301,754,900.04
enterprises 4 0 0 6
and joint
ventures
260
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
9,415,609,030.0 1,083,234,900.0 8,332,374,129.9 9,436,422,418.1 1,083,234,900.0 8,353,187,518.1
Total
2 4 8 8 4 4
（1） Investment in subsidiaries
Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Konka
2,550,000.00 2,550,000.00
Ventures
Anhui
122,780,937.98 122,780,937.98
Konka
Konka
Electron
ic 300,000,000.00 300,000,000.00
Material
s
Konka
Unifortu 15,300,000.00 15,300,000.00
ne
Wankaid
10,000,000.00 10,000,000.00
a
Donggu
an 274,783,988.91 274,783,988.91
Konka
Konka
3,637,470.00 3,637,470.00
Europe
Telecom
municati
on 360,000,000.00 360,000,000.00
Technol
ogy
Mobile
Intercon 100,000,000.00 100,000,000.00
nection
Anhui
Tongchu 779,702,612.22 779,702,612.22
ang
Kangjiat 30,749,800.00 30,749,800.00
261
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
ong
Pengrun
Technol 25,500,000.00 25,500,000.00
ogy
Beijing
Konka
200,000,000.00 200,000,000.00
Electron
ic
Konka
437,050,000.00 13,000,000.00 450,050,000.00
Circuit
Hong
Kong 781,828.61 781,828.61
Konka
Konka
Investm 500,000,000.00 500,000,000.00
ent
Electron
ics
1,000,000,000.00 1,000,000,000.00
Technol
ogy
Shangha
40,000,000.00 40,000,000.00
i Konka
Jiangxi
689,680,000.0
Konka
0
Shenzhe
n 30,000,000.00 30,000,000.00
Nianhua
Shenzhe
n
100,000,000.00 100,000,000.00
KONSE
MI
Konka
Eco-
50,000.00 50,000.00
Develop
ment
262
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Suining
Konka
200,000,000.00 200,000,000.00
Industria
l Park
Konka
5,100,000.00 5,100,000.00
Ronghe
Suining
Electron
ic
Technol 200,000,000.00 200,000,000.00
ogical
Innovati
on
Shenzhe
n
Chuangz
hi
10,000,000.00 10,000,000.00
Electrica
l
Applian
ces
Chongqi
ng
Konka
Optoelec 933,333,333.33 933,333,333.33
tronic
Technol
ogy
Kowin
Memory
192,520,000.00 192,520,000.00
(Shenzh
en)
Ningbo
Kanghr
Electrica
90,000,000.00 90,000,000.00
l
Applian
ce
Konka
Intellige 510.00 510.00
nt
Manufac
263
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
turing
Suining
Jiarun 10,000,000.00 10,000,000.00
Property
Yibin
67,000,000.00 67,000,000.00
Kangrun
Hainan
Konka
Material 9,205,452.93 9,205,452.93
Technol
ogy
Konka
Cross-
50,000,000.00 50,000,000.00
border
(Hebei)
Konka
Huazhon 30,000,000.00 30,000,000.00
g
Guizhou
Kanggui
Material 28,000,000.00 28,000,000.00
Technol
ogy
Nantong
15,300,000.00 15,300,000.00
Kanghai
Jiangxi
Konka
High- 50,000,000.00 50,000,000.00
tech
Park
Shangra
o Konka
Electron
ic
30,000,000.00 30,000,000.00
Technol
ogy
Innovati
on
264
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Impair
ment
Closing
provisi
Increase in the Decrease in the balance of the
Investee Opening balance Closing balance on set
current period current period provision for
aside in
impairment
the
current
period
Xi'an
Kangho
ng
12,000,000.00 12,000,000.00
Technol
ogy
Industry
Xi'an
Konka
Intellige
50,000,000.00 50,000,000.00
nt
Technol
ogy
Songyan
g Konka
30,000,000.00 30,000,000.00
Intellige
nt
Konka
North 30,000,000.00 30,000,000.00
China
689,680,000.0
Total 6,375,345,933.98 13,000,000.00 10,000,510.00 6,378,345,423.98
0
（2） Investment in associated enterprises and joint ventures
Changes in the current period
Balance as at the end Profit or loss of Changes in
Investee
of last period Increase in Decrease in investment other
the investment the investment recognised by the comprehensive
equity method income
Anhui Kaikai Shijie E-commerce
17,493,847.46 -5,828,645.96
Co., Ltd.
Kunshan Kangsheng Investment
112,914,774.51 -3,336,356.30
Development Co., Ltd.
Shanxi Silk Road Cloud Intelligent
5,187,588.48 -669,600.90
Tech Co., Ltd.
Shenzhen Kanghongxing
Intelligent Technology Co., Ltd.
Shenzhen Zhongkang Beidou
265
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Balance as at the end Profit or loss of Changes in
Investee
of last period Increase in Decrease in investment other
the investment the investment recognised by the comprehensive
equity method income
Technology Co., Ltd.
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology 7,090,590.47 -480,528.54
Co., Ltd.
Shenzhen Yaode Technology Co.,
Ltd.
Wuhan Tianyuan Environmental
512,729,351.11 17,245,673.07
Protection Co., Ltd.
Shenzhen KONKA E-display Co.,
15,355,334.74 1,799,918.18
Ltd.
Chuzhou Konka Technology
Industry Development Co., Ltd.
Chuzhou Kangjin Health Industrial
136,166,304.62 -3,469,664.26
Development Co., Ltd.
Nantong Kangjian Technology
Industrial Park Operations and 5,625,680.96
Management Co., Ltd.
Shenzhen Kangyue Enterprise Co.,
Ltd.
Dongguan Guankang Yuhong
Investment Co., Ltd.
Chongqing Yuanlv Benpao Real
Estate Co., Ltd.
Chuzhou Kangxin Health Industry
8,277,052.29 -1,100,714.21
Development Co., Ltd.
E3info (Hainan) Technology Co.,
8,574,609.73
Ltd.
Shenzhen Kangpeng Digital
1,770,021.01 -345,320.82
Technology Co., Ltd.
Yantai Kangyun Industrial
Development Co., Ltd.
Shandong Econ Technology Co.,
928,660,408.13
Ltd.
266
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period
Balance as at the end Profit or loss of Changes in
Investee
of last period Increase in Decrease in investment other
the investment the investment recognised by the comprehensive
equity method income
Dongguan Kangjia New Materials
3,856,971.32 2,886.15
Technology Co., Ltd.
Chongqing E2info Technology
185,922,140.28 6,320,936.88
Co., Ltd.
Sichuan Chengrui Real Estate Co.,
Ltd.
Wuhan Kangtang Information
25,757,222.60 -848,227.42
Technology Co., Ltd.
Sichuan Hongxinchen Real Estate
2,459,686.45
Development Co., Ltd.
Konka Huanjia Environmental
Technology Co., Ltd.
Total 1,977,841,584.16 9,290,355.87
(Continued)
Changes in the current period Closing balance
Ending balance of
Cash dividends Provision
Investee depreciation
Changes in other or profits set aside
Others (Carrying value) reserve
equities declared to be for
distributed impairment
Anhui Kaikai Shijie E-
11,665,201.50
commerce Co., Ltd.
Kunshan Kangsheng
Investment Development Co., 7,350,000.00 102,228,418.21
Ltd.
Shanxi Silk Road Cloud
4,517,987.58
Intelligent Tech Co., Ltd.
Shenzhen Kanghongxing
Intelligent Technology Co., 5,158,909.06
Ltd.
Shenzhen Zhongkang Beidou
Technology Co., Ltd.
Shenzhen Kangjia Jiapin
Intelligent Electrical
6,610,061.93
Apparatus Technology Co.,
Ltd.
267
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period Closing balance
Ending balance of
Cash dividends Provision
Investee depreciation
Changes in other or profits set aside
Others (Carrying value) reserve
equities declared to be for
distributed impairment
Shenzhen Yaode Technology
214,559,469.35
Co., Ltd.
Wuhan Tianyuan
Environmental Protection Co., -11,288,034.03 10,465,200.00 508,221,790.15
Ltd.
Shenzhen KONKA E-display
17,155,252.92
Co., Ltd.
Chuzhou Konka Technology
Industry Development Co.,
Ltd.
Chuzhou Kangjin Health
Industrial Development Co., 132,696,640.36
Ltd.
Nantong Kangjian Technology
Industrial Park Operations and 5,625,680.96
Management Co., Ltd.
Shenzhen Kangyue Enterprise
230,011.61
Co., Ltd.
Dongguan Guankang Yuhong
Investment Co., Ltd.
Chongqing Yuanlv Benpao
Real Estate Co., Ltd.
Chuzhou Kangxin Health
Industry Development Co., 7,176,338.08
Ltd.
E3info (Hainan) Technology
4,000,000.00 4,574,609.73
Co., Ltd.
Shenzhen Kangpeng Digital
1,424,700.19
Technology Co., Ltd.
Yantai Kangyun Industrial
Development Co., Ltd.
Shandong Econ Technology
928,660,408.13 81,806,510.02
Co., Ltd.
Dongguan Kangjia New 3,859,857.47
Materials Technology Co.,
268
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Changes in the current period Closing balance
Ending balance of
Cash dividends Provision
Investee depreciation
Changes in other or profits set aside
Others (Carrying value) reserve
equities declared to be for
distributed impairment
Ltd.
Chongqing E2info Technology
192,243,077.16
Co., Ltd.
Sichuan Chengrui Real Estate
Co., Ltd.
Wuhan Kangtang Information
24,908,995.18
Technology Co., Ltd.
Sichuan Hongxinchen Real
2,459,686.45
Estate Development Co., Ltd.
Konka Huanjia Environmental
91,800,000.00
Technology Co., Ltd.
Total -11,288,034.03 21,815,200.00 1,954,028,706.00 393,554,900.04
4. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current period Amount incurred last period
Item
Income Cost Income Cost
Principal
840,712,402.51 880,759,443.78 588,736,212.10 651,086,329.20
business
Other business 74,623,388.01 29,020,937.18 82,606,260.87 31,456,950.98
Total 915,335,790.52 909,780,380.96 671,342,472.97 682,543,280.18
（2） Information in relation to the trade price apportioned to the residual contract performance
obligation
The amount of revenue corresponding to performance obligations that have been contracted but have not yet
been fulfilled or completed at the end of the period is RMB2 ,522 ,999.28, of which RMB2 ,522 ,999.28 is
expected to be recognised as revenue in 2024.
5. Investment income
Amount incurred in the Amount incurred last
Item
current period period
269
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount incurred in the Amount incurred last
Item
current period period
Returns on long-term equity investments calculated by the equity
9,290,355.87 -17,573,675.23
method
Return on investment arising from the disposal of long-term equity
16,490,883.27 182,495,426.59
investments
Conversion of long-term equity investments accounted for by the
574,780,174.75
equity method to financial assets
Investment income from disposal of financial assets at fair value
11,456.91 -3,794,910.98
through profit or loss
Interest income from debt investments during the holding period 2,140,000.00 3,622,191.78
Return on investment in the financial assets held for trading during
4,240,444.62 9,383,976.00
the holding period
Others -152,872.14 500,000.00
Total 32,020,268.53 749,413,182.91
XVIII. Supplementary Materials to the Financial Statements
1. Items and amounts of non-recurring profit or loss in the current period
Amount of current
Item Notes
period
Profit or losses on disposal of non-current assets (including the portion offset
837,373.68
for provisions for asset impairment)
Government subsidies included in profit and loss of the current period
(except for government subsidies that are closely related to the Company's
normal business operation, comply with national policies and are enjoyed in 55,171,603.63
accordance with defined criteria, and have a continuing impact on the
Company's profit or loss)
Profit or losses from changes in fair value of financial assets and liabilities
held by non-financial corporations and profit or losses from the disposal of
-165,919,193.12
financial assets and liabilities, except for effective hedging operations related
to the Company's normal business operations
Dispossession surcharge to non-financial institutions included in the current
profit and loss
Gain/Loss on entrusting others with investments or asset management
Gain/loss on entrustment loans 63,154,861.04
Losses on assets resulted from force majeure factors such as natural disasters
270
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
Amount of current
Item Notes
period
Reclassification of impairment loss allowances of receivables separately
tested for impairment
Profits arising from business combination when the combined cost is less
than the recognised fair value of net assets of the merged company
Current net profit or loss of subsidiaries acquired in business combination
under the same control from period-beginning to combination date
Profit/Loss on non-monetary asset swap
Profit/Loss on debt restructuring
One-time costs incurred by an enterprise as a result of the discontinuation of
a related operating activity, such as expenses for relocating employees
One-time impact on profit or loss for the current period due to adjustments in
tax, accounting and other laws and regulations
One-time recognition of share-based payment expense due to cancellation
and modification of equity incentive plans
Cash-settled share-based payments, profit or losses arising from changes in
the fair value of employee compensation payable after the date of
exercisability
Gain/loss on change in fair value of investment property of which the follow-
up measurement is carried out adopting fair value method
Income from transactions at significantly unfair prices
Profit and losses arising from contingencies unrelated to the normal operation
of the Company's business
Custodian fees earned from entrusted operation
Non-operating income and expenses other than those listed above 11,832,131.66
Other profit and loss items in line with the definition of non-recurring gains
30,000,710.67
and losses
Subtotal -4,922,512.44
Less: Income tax effect -29,890,840.20
Effect of minority shareholders' equities (after tax) 9,471,559.59
Total 15,496,768.17 —
(1) Specific information on other profit and loss items that meet the definition of non recurring gains and
271
Notes to financial statements of Konka Group Co., Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified, the notes to the financial statements are presented in renminbi)
losses:
Item Amount Reasons
In March 2024, one of the Company’s holding
subsidiaries in Dalian entered into bankruptcy
and liquidation proceedings pursuant to a court
decision, and has been taken over by a court-
Reversal of excess losses recognized in appointed bankruptcy and liquidation
31,971,388.49
previous periods administrator to take over the relevant
information and physical objects, and the
Company no longer controls this company, and
therefore it has reversed the excess losses
recognized in previous periods.
Derecognition of revenue for financial
-1,970,677.82 Derecognition of revenue for notes receivable
assets measured at amortized costs
(2) The Company recognises items that are not listed in the Explanatory Announcement No. 1 on
Information Disclosure by Companies Offering Securities to the Public--Non-recurring Profit or Loss (Revised
in 2023) as non-recurring profit or loss items, and those involving significant mounts as well as the non-
recurring profit or loss items listed as recurring profit or loss items
Item Amount Reasons
Government subsidies which are closely
related to the normal business of the
Software tax refund 1,596,783.94 company and which are in accordance with
national policies and certain standard quota
or quantitative amount
2. Return on net assets and earnings per share
EPS (RMB/share)
Weighted average
Profit for the Reporting Period Weighted average return on net
Basic earnings per Diluted earnings
assets (%)
share per share
Net profit attributable to ordinary
shareholders of the Company as the -21.33 -0.4517 -0.4517
Parent
Net profit attributable to ordinary
shareholders of the Company as the
-21.64 -0.4581 -0.4581
Parent before exceptional gains and
losses
The Board of Directors
Konka Group Co., Ltd.
31 August 2024
272
