Konka Group Co., Ltd. Interim Report 2024
(Summary)
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2024-41
Bond Code: 149987, 133306 Bond Name: 22 Konka 01, 22 Konka 03
133333, 133759 22 Konka 05, 24 Konka 01
133782, 133783 24 Konka 02, 24 Konka 03
KONKA GROUP CO., LTD.
INTERIM REPORT 2024 (SUMMARY)
Part I Important Notes
This Summary is based on the full Interim Report. In order for a full understanding of the operating
results, financial condition and future development planning of the Company, investors are kindly
reminded to read the full text carefully on the media designated by the China Securities Regulatory
Commission (the “CSRC”).
All the Company’s directors have attended the Board meeting for the review of this Report and its
summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
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.
Part II Key Corporate Information
1. Stock Profile
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
Stock exchange for stock listing Shenzhen Stock Exchange
Changed stock name (if any) N/A
Contact information Board Secretary Securities Representative
Name Li Chunlei Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, Board Secretariat, 24/F, Konka R&D Center,
Office address
28 Keji South Twelfth Road, Science and 28 Keji South Twelfth Road, Science and
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Konka Group Co., Ltd. Interim Report 2024
(Summary)
Technology Park, Yuehai Street, Nanshan Technology Park, Yuehai Street, Nanshan
District, Shenzhen, Guangdong Province, District, Shenzhen, Guangdong Province,
China China
Tel. 0755-26609138 0755-26609138
E-mail address szkonka@konka.com szkonka@konka.com
2. 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 company’s shareholders
-1,087,581,842.55 -193,240,232.33 -462.81%
(RMB)
Net profit attributable to the listed company’s shareholders
-1,103,078,610.72 -891,594,370.41 -23.72%
before exceptional gains and losses (RMB)
Net cash generated from/used in operating activities (RMB) -439,338,365.13 -201,550,105.24 -117.98%
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 shareholders
4,553,306,674.94 5,644,401,184.65 -19.33%
(RMB)
3. Shareholders and Their Holdings as at the End of the Reporting Period
Unit: share
Number of preferred shareholders with resumed voting
Number of ordinary shareholders 84,245 0
rights (if any)
Top 10 shareholders (exclusive of shares lent in refinancing)
Shareholdin Shares in pledge, marked
Nature of Number of Restricte
Name of shareholder g or frozen
shareholder shares d shares
percentage Status Shares
OVERSEAS CHINESE TOWN State-owned
HOLDINGS COMPANY legal person 21.75% 523,746,932 0
CITIC SECURITIES
Foreign legal
BROKERAGE (HONG KONG) 7.48% 180,001,110 0
person
CO., LTD.
GUOYUAN SECURITIES Foreign legal
BROKER (HK) CO., LTD. person 2.47% 59,456,543 0
Foreign legal
HOLY TIME GROUP LIMITED 2.38% 57,289,100 0
person
Foreign legal
GAOLING FUND ,L.P. 1.21% 29,037,555 0
person
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Konka Group Co., Ltd. Interim Report 2024
(Summary)
Domestic
WANG JINGFENG 1.06% 25,625,800 0
natural person
Domestic
ZHANG SUFEN natural person 1.06% 25,500,000 0
Foreign natural
NAM NGAI person 0.83% 20,000,000 0
CHINA MERCHANTS State-owned
SECURITIES (HK) LIMITED legal person 0.82% 19,837,520 0
BOCOM INTERNATIONAL Foreign legal
SECURITIES LIMITED person 0.78% 18,896,037 0
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (OCT Group), holds
180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC
Related or acting-in-concert parties
Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK)
among shareholders above
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.
Shareholders conducting margin Wang Jingfeng holds 25,500,000 A-shares in the Company through his securities account
trading (if any) for customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
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
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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Konka Group Co., Ltd. Interim Report 2024
(Summary)
6. Outstanding Bonds at the Date when this Report Was Authorized for Issue
√ Applicable □ Not applicable
(1) Basic Information of Bonds
Bonds
Coup
balance
Name Abbr. Code Issue date Due date on
(RMB’0,0
rate
00)
Corporate bonds publicly offered to professional
22 Konka 14 July 14 July
investors in 2022 of Konka Group Co., Ltd. 149987 120,000 3.23%
01 2022 2025
(Tranche I) (Variety I)
Privately placed corporate bonds to professional 8 8
22 Konka
investors in 2022 of Konka Group Co., Ltd 133306 September September 60,000 3.30%
03
(Tranche I) (Variety I) 2022 2025
Privately placed corporate bonds to professional
22 Konka 18 October 18 October
investors in 2022 of Konka Group Co., Ltd 133333 60,000 3.50%
05 2022 2025
(Tranche II)
Privately placed corporate bonds to professional
24 Konka 29 January 29 January
investors in 2024 of Konka Group Co., Ltd 133759 2024 2027 150,000 4.00%
01
(Tranche I)
Privately placed corporate bonds to professional
24 Konka 18 March 18 March
investors in 2024 of Konka Group Co., Ltd 133782 2024 2027 40,000 4.00%
02
(Tranche II) (Variety I)
Privately placed corporate bonds to professional
24 Konka 18 March 18 March
investors in 2024 of Konka Group Co., Ltd 133783 2024 2027 40,000 4.03%
03
(Tranche II) (Variety II)
(2) Financial Indicators as at the End of the Reporting Period
Unit: RMB’0,000
Item 30 June 2024 31 December 2023
Debt/asset ratio 86.45% 83.51%
Item H1 2024 H1 2023
EBITDA-to-interest cover (times) -2.34 0.89
Part III Significant Events
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
the main business and had a low gross margin. As a result, the Company's operating r evenue
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:
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Konka Group Co., Ltd. Interim Report 2024
(Summary)
1. In the first half of 2024, the Company actively adjusted its sales strategy for its domes tic 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.
The Board of Directors
Konka Group Co., Ltd.
31 August 2024
5
