KONKA GROUP CO., LTD.
THE THIRD QUARTERLY REPORT 2009
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and
senior management of Konka Group Co., Ltd. (hereinafter referred to as “the
Company”) warrant that this report does not contain any false or misleading
statements or omit any material facts and accept the individual and joint
responsibilities for accuracy, correctness and completeness of the contents of this
report.
1.2 None of the directors, supervisors, senior management demonstrated uncertainty
or disagreement about the accuracy, correctness, and completeness of the first
quarterly report.
1.3 All directors attended the Board meeting.
1.4 The Financial Report of the third quarterly report has not been audited.
1.5 Mr. Hou Songrong, Chairman of the Board of the Company, Mr. Yang Guobin, Chief
Financial Officer of the Company, and Mr. Ruan Renzong, person in charge of
Accounting Organ hereby confirm that the Financial Report enclosed in the Quarterly
Report is true and complete.
§2. Company Profile
2.1 Main accounting data and financial indices
Unit: RMB Yuan
30 Sep. 2009 31 Dec. 2008 Increase/decrease (%)
Total assets (Yuan) 12,835,775,228.26 10,517,285,515.63 22.04
Owners’ equity attributable to shareholders of
listed company (Yuan)
3,822,284,067.24 3,775,042,931.48 1.25
Share capital (Share) 1,203,972,704.00 1,203,972,704.00 0.00
Net assets per share attributable to shareholders of
listed company (Yuan/share)
3.175 3.135 1.28
Jul.-Sep. 2009
Increase/decrease
year-on-year (%)
Jan.-Sep. 2009
Increase/decrease
year-on-year (%)
Operating revenue (Yuan) 3,853,977,811.36 13.15 9,025,977,839.56 -0.01
Net profit attributable to shareholders of
listed company
26,344,833.39 -75.47 106,646,848.40 -43.25
Net cash arising from operating activities
(Yuan)
- - -54,690,811.58 31.70
Net cash per share arising from operating
activities (Yuan/share)
- - -0.045 31.70
Basic earnings per share (Yuan/share) 0.0219 -75.45 0.0886 -43.24
Diluted earnings per share (Yuan/share) 0.0219 -75.45 0.0886 -43.24
Return on equity (%) 0.69% -2.21 2.79% -2.28
Return on equity after deducting 0.37% -2.56 2.33% -2.802
non-recurring gains and losses (%)
Items of non-recurring gains and losses
Unit: RMB Yuan
Items Amount Note
Gains and losses from disposal of non-current assets 1,783,231.43
Governmental grants counted into the current profit and loss, except for the
one closely related with the normal operation of the company and gained
constantly at a fixed amount or quantity according to certain standard based
on state policies
999,155.00
Gains and loss from change in fair value by holding tradable financial assets
and liabilities, and investment income from disposal of tradable financial
assets and liabilities as well as salable financial assets, excluding the
effective hedging businesses related with the normal operations of the company
12,533,172.11
Other non-operating income and expenses besides the above items 6,398,086.94
Amount affected on minority interest -662,952.27
Amount affected on income tax -3,484,538.12
Total 17,566,155.09 -
2.2 Total number of shareholders at the end of the report period and statement on
shares held by the top ten shareholders holding shares not subject to trading
moratorium
Unit: Share
Total number of shareholders 110,017
The top ten shareholders holding tradable shares not subject to trading moratorium
Full name of shareholder
Numbers of shares not
subject to moratorium
held at the period-end
Type of shares
GAOLING FUND,L.P. 58,930,179
Domestically listed foreign
shares
Overseas Chinese Town Group Company 30,372,843 Renminbi ordinary shares
HOLY TIME GROUP LIMITED 28,046,107
Domestically listed foreign
shares
CNCA A/C COMPAGNIE FINANCIERE EDMOND DE ROTHSCHILD 27,999,774
Domestically listed foreign
shares
CCB－Fortune SGAM Income Growth Hybrid Fund 14,459,649 Renminbi ordinary shares
NOMURA SECURITIES CO.LTD 13,500,000
Domestically listed foreign
shares
NAM NGAI 12,107,600
Domestically listed foreign
shares
GAOLING YALI FUND,L.P. 9,005,161
Domestically listed foreign
shares
China Everbright Bank-Everbright Pramerica Quantified
Core Fund
8,961,275 Renminbi ordinary shares
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 7,233,600
Domestically listed foreign
shares
§3. Significant Events
3.1 Particular about large-margin changes in main item of accounting statement and
financial index and reasons for change
√Applicable □Inapplicable3
I. Net profit of first three quarters of 2009 declined compared with the same period
of last year due to the following reasons
1. Price of panel has been rising up in the three quarters of 2009, which lessened
profit
Since 2009, especially the second and the third quarter, panel manufacturing
enterprises reduced supply by reduce operating rate to heighten price, and price
of LCD for television continually rose up. Panel takes up 60%-80% in cost of LED
television, so rise of price of LED damaged profit of television manufacturing
companies, which caused decline of profitability of flat panel television.
2. Olympic Games 2008 promoted sales of televisions by a large margin, and net profit
in the third quarter 2008 was high, but net profit decreased by a large margin
year-on-year.
Driving by Olympic economic, on behalf of Konka HDTV, Konka i-sport series HDTV sold
well and the color TV’s sale volume of the Company grew significantly in the third
quarter of 2008, which caused high net profit. Growth rate of sales of television
in the third quarter of 2009 was lower than the same period of last year due to lack
of direct stimulus, and net profit of television business realized decreased.
Due to the above factors, net profit attributable to owners of parent company in
the first three quarters decreased 43.25% year-on-year.
II. Monetary capital at the end of report period increased 95.22% over the year-begin,
mainly because the Company developed portfolio of USD loan+RMB pledge loan+NDF and
deposit of pledged RMB increased.
III. Construction in progress at the end of report period increased 365.55% over
the year-begin, mainly because investment on construction in progress increased for
establishment of Kunshan KONKA Electronic Co., Ltd, move of An Hui KONKA Electronic
Co., Ltd and successful advance of R&D Building in headquarters.
IV. Intangible assets at the end of report period increased 144.81% over the
year-begin, which was mainly because the Company gained land use right for Kunshan
KONKA Electronic Co., Ltd.
V. Tax payable at the end of report period decreased 461.36% over the year-begin,
mainly because the Company purchased import cargoes for Shenzhen KONKA
Telecommunications Technology Co., Ltd and headquarters, and value-added tax paid
caused decrease of tax payable.
VI. The financial expenses of the first three quarters this year registered a
year-on-year increase of 627.27%. This was because the NDF composite business of
the Company saw a significantly less income in the year 2009 than 2008 due to the
market reason; meanwhile, the considerable year-on-year increase of the financial
expenses was also resulted from the increase of the discount charges due to the growth
of the Company’s discount business in the report period.
VII. The first three quarters this year saw a year-on-year growth of 82.67% in the
non-business income, which mainly came from the government prizes won by
subsidiaries Dongguan Konka Electronics Co., Ltd. and Dongguan Konka Tooling and
Mould Co., Ltd., as well as from the increase of penalty income.
3.2 Progress of significant events, as well as analysis and explanation on their
impact and solutions
√Applicable □Inapplicable
The Company did not offer capital to the controlling shareholder and its related
parties. Neither did it provide external guarantees in violation of prescribed4
procedures.
3.3 Particulars about implementation of commitments made by the Company, its
shareholders and actual controller
√Applicable □Inapplicable
The OCT Group Co., Ltd., the Company’s shareholder, made the following special
commitments in the share merger reform:
Name of
shareholder
Special commitments made Implementation
The OCT Group
Co., Ltd.
(1) All the non-tradable Konka Group shares held by OCT Group would not
be listed for trading or transferred within 24 months since the day when
the said shares became tradable in the A-share market;
(2) Upon the expiration of the aforesaid commitment, the originally
non-tradable Konka Group shares listed and sold through the stock
exchange would not exceed 5% of the total Konka Group shares within 12
months, and not exceed 10% within 24 months.
No listing and
trading of the shares
subject to moratorium
has been applied. And
those shares have not
been transferred,
either.
Except for the above-mentioned commitments, the Company or its shareholders had not
made any other commitment by the period-end.
3.4 Warnings of possible losses or major changes of the accumulative net profit
achieved during the period from year-begin to the end of the next report period
compared with the same period of last year, as well as explanation on reasons
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Securities investment
In the report period, the Company acquired 2,000 shares of Everbright Securities
and 23,000 shares of China Metallurgical, which were all sold later and generated
a profit of RMB 45,425.49.
3.5.2 Equity of other listed companies held by the Company
Unit: (RMB) Yuan
Stock code
Short form of
stock
Initial
investment
Ratio to equity of
invested company
Book value at
period-end
Profit and loss
in report
period
Changes of owners’
equity in report period
000002 Wanke A 2,311,748.07 0.00% 1,222,370.20 0.00 -273,332.30
600891 SSTQIULIN 9,000,000.00 3.84% 9,000,000.00 0.00 0.00
Total 11,311,748.07 - 10,222,370.20 0.00 -273,332.30
3.5.3 Researches, interviews and visits received in report period
Time Place
Way of
reception
Visitor
Main discussion and materials provided by the
Company
13 Jul.
2009
Company
office
Field
research
Guoyuan Securities and
First Shanghai
Investments
Development trends in the industry, the
Company’s position in the industry, the market
prospect of the Company’s new products and the
progress of relevant work
3.6 Derivatives investment
√Applicable □Inapplicable
Considering the fluctuating RMB exchange rate, to conduct the USD loan + RMB pledged
deposit + NDF composite business (hereinafter referred to as “the NDF composite5
business”) was believed to be able to generate a proper sum of risk-free profit.
Therefore, upon the agreement of the Board of Directors, the Company started its
NDF composite business. In such a composite business, NDF was one of the financial
derivative products, but the function of the NDF was only to lock the forward exchange
rate so as to avoid relevant risks. When the NDF composite business was due and
settled, the Company would obtain a proper risk-free income after paying off the
relevant interest and expenses.
Up until the end of the report period, the Company had invested a principal sum of
USD 374.32 million in its NDF composite business, which would be due one year after
the date when the investment was made. When the business was due and settled, the
fixed income would surely be realized. And such an income from the NDF composite
business was considered fixed and risk-free, with no fluctuating profits or losses,
and no changes of fair value. Meanwhile, compared with the last report period, no
significant changes took place in the Company’s accounting policy and specific
accounting principles of the NDF composite business.
Analysis on risks and control measures of holding
positions of derivatives in the report period
(including but not limited to market risk, liquidity
risk, credit risk, operation risk, law risk, etc.)
In the NDF composite business, the function of NDF
was only to lock the forward exchange rate so as to
avoid relevant risks. And the income from the NDF
composite business was considered fixed and
risk-free.
Changes of market prices or fair values in the report
period of the invested derivatives, and the analysis
on the fair value of the derivatives should include how
to use, and the relevant assumptions and parameters
The income from the NDF composite business was
considered fixed and risk-free, with no fluctuating
profits or losses, and no changes of fair value.
Whether significant changes happened to the Company’s
accounting policy and specific accounting principles
of the derivatives in the report period compared with
the last report period
Compared with the last report period, no significant
changes took place in the Company’s accounting
policy and specific accounting principles of the NDF
composite business.
Specific opinion from independent directors, sponsors
or financial consultants on the Company’s derivatives
investment and risk control
The independent directors of the Company Ms. Yang
Haiying, Mr. Feng Yutao and Mr. Zhang Zhong were of
the opinion that it was necessary to some degree for
the Company to conduct the NDF composite business
because it enabled the Company to enjoy fixed and
risk-free profits brought by the RMB exchange rate
fluctuation; the internal control systems of
derivatives investment that the Company is
improving, and the relevant risk control measures to
be taken by the Company were considered feasible.
3.6.1 Positions of derivatives held by the Company at period-end
√Applicable □Inapplicable
Unit: (RMB) Billion
Type of contract
Maturing date of
contract
Contract amount at
period-begin
Contract amount at
period-end
Proportion of the
contract amount at
period-end in the
Company’s net
assets at period-end
USD loan + RMB pledged
deposit + NDF composite
business
One year after the
operation date
0 2.556 66.88%
Total - 0 2.556 66.88%
§4. Appendix
4.1 Balance sheet
Prepared by Konka Group Co., Ltd 30 Sep. 2009 Unit: RMB Yuan
Item Closing balance Opening balance6
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 4,033,814,149.00 3,138,114,733.07 2,066,252,494.08 1,475,666,531.16
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable 2,436,986,818.83 2,201,190,903.07 2,602,862,135.40 2,490,683,124.51
Account receivable 1,269,899,678.96 1,108,279,810.63 1,326,261,316.54 1,047,632,207.37
Account paid in advance 144,507,914.39 189,988,578.80 258,992,334.73 202,116,433.21
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve
receivables
Interest receivable 19,905,867.09 17,616,624.79
Dividend receivable
Other account receivable 96,842,008.10 882,304,520.80 81,299,762.88 1,069,914,747.28
Financial assets purchased
under agreements to resell
Inventories 3,138,627,541.72 2,412,818,351.79 2,573,776,867.13 1,914,848,396.91
Non-current assets due within
1 year
Other current assets
Total current assets 11,120,678,111.00 9,932,696,898.16 8,929,350,777.85 8,218,478,065.23
Non-current assets:
Loans and advance
Available for sale financial
assets
10,222,370.20 10,222,370.20 9,756,649.50 9,756,649.50
Held to maturity investments
Long-term account receivable
Long-term equity investment 21,035,083.44 1,149,511,669.87 21,610,338.75 1,149,511,669.87
Investing property
Fixed asset 1,272,385,576.47 394,273,238.11 1,344,177,898.16 417,114,182.46
Project in construction 127,241,574.67 40,854,152.25 27,331,613.11 17,412,689.40
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 169,463,757.94 19,219,537.09 69,223,899.60 19,277,794.23
Development expense
Goodwill 3,943,671.53 3,943,671.53
Long-term expense to be
apportioned
18,913,003.56 6,820,351.96 19,897,124.12 5,970,948.27
Deferred tax assets 91,892,079.45 90,960,210.73 91,993,543.01 91,053,354.87
Other non-current assets
Total of non-current assets 1,715,097,117.26 1,711,861,530.21 1,587,934,737.78 1,710,097,288.60
Total assets 12,835,775,228.26 11,644,558,428.37 10,517,285,515.63 9,928,575,353.83
Current liabilities:
Short-term loans 2,777,987,335.00 2,561,333,550.00 1,346,375,610.78 1,094,765,111.29
Loans from central bank
Deposits received and hold
for others7
Placements From Banks Other
Financial Institutions
Transaction financial
liabilities
12,481,880.16 10,623,434.10
Notes payable 3,047,117,388.32 2,487,532,415.70 2,637,681,947.36 2,441,813,730.21
Account payable 1,689,740,124.97 1,761,888,884.29 1,571,761,341.98 1,640,897,495.08
Account received in advance 274,654,448.64 132,333,764.65 179,376,510.50 110,769,256.44
Financial assets sold under
agreements to repurchase
Handling charges and
commission payable
Employee’s compensation
payable
154,100,277.69 65,110,698.01 168,838,494.96 81,507,222.39
Tax payable -51,543,938.36 -18,653,573.90 14,263,975.12 27,855,510.51
Interest payable 8,247,223.62 5,511,794.93
Dividend payable 8,558,368.74 7,108,659.46
Other account payable 826,320,517.42 801,656,449.66 527,535,236.31 628,707,957.85
Due to reinsurers
Insurance contract reserve
Customer deposits
Amount payables under
security underwriting
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 8,726,934,522.42 7,791,202,188.41 6,473,670,880.25 6,042,451,512.80
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific purpose account
payables
Deferred income 65,803,369.62 52,992,369.62 43,578,369.62 39,442,369.62
Provisions for contingent
liabilities
Deferred tax liabilities 563,067.21 563,067.21
Other non-current
liabilities
Total non-current
liabilities
66,366,436.83 52,992,369.62 44,141,436.83 39,442,369.62
Total liabilities 8,793,300,959.25 7,844,194,558.03 6,517,812,317.08 6,081,893,882.42
Owner’s equity (or
shareholders’ equity)
Paid-in capital (or share
capital)
1,203,972,704.00 1,203,972,704.00 1,203,972,704.00 1,203,972,704.00
Capital surplus 1,256,510,871.77 1,249,262,087.74 1,256,138,295.21 1,248,889,511.18
Less: Treasury Stock
Special reserves
Surplus reserve 804,896,533.82 804,896,533.82 804,896,533.82 804,896,533.82
General risk provision
Retained earnings 547,086,338.31 542,232,544.78 500,638,125.11 588,922,722.41
Foreign exchange difference 9,817,619.34 9,397,273.348
Total owners' equity
attributable to holding
company
3,822,284,067.24 3,800,363,870.34 3,775,042,931.48 3,846,681,471.41
Minority interest 220,190,201.77 224,430,267.07
Total owner’s equity 4,042,474,269.01 3,800,363,870.34 3,999,473,198.55 3,846,681,471.41
Total liabilities and
owner’s equity
12,835,775,228.26 11,644,558,428.37 10,517,285,515.63 9,928,575,353.83
4.2 Income statement during the reporting period
Prepared by Konka Group Co., Ltd Jul.-Sep. 2009 Unit: RMB
Yuan
Jul.-Sep. 2009 Jul.-Sep. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 3,853,977,811.36 3,345,070,509.22 3,406,201,752.85 2,932,985,868.86
Including: Sales 3,853,977,811.36 3,345,070,509.22 3,406,201,752.85 2,932,985,868.86
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 3,825,769,499.79 3,380,095,164.49 3,268,102,196.96 2,827,059,406.12
Including: Cost of sales 3,161,286,159.30 2,818,338,010.57 2,754,103,916.37 2,411,092,454.83
Interests expenses
Service charge and commission
income
Cash surrender value
Claim expenses-net
Provision for insurance
contract reserves-net
Insurance policy dividend
paid
Reinsurance expense
Business taxes and surcharges 743,601.89 199,376.18 789,514.67 17,013.19
Distribution expenses 524,136,474.55 467,532,448.34 422,936,325.64 369,250,208.43
Administrative expenses 117,733,448.85 73,351,915.11 102,777,099.02 68,616,652.57
Financial costs 22,686,179.10 20,673,414.29 -12,482,211.48 -21,916,922.90
Impairment loss -816,363.90 -22,447.26
Add: gain/(loss) from change
in fair value (“-” means
loss)
8,445,431.25 8,445,431.25
Gain/(loss) from investment
(“-” means loss)
1,909,738.01 51,291.95 -2,599,725.61 42,875,961.08
Including: income form
investment on affiliated
enterprise and jointly
enterprise
Foreign exchange difference
(“-” means loss)
III. Business profit (“-”
means loss)
38,563,480.83 -26,527,932.07 135,499,830.28 148,802,423.82
Add: non-business income 5,646,103.71 3,032,376.41 1,390,124.85 965,914.55
Less: non-business expense 889,318.58 503,294.36 2,563,264.51 1,694,679.299
Including: loss from
non-current asset disposal
265,639.19 213,130.81 248,201.51 143,722.47
IV. Total profit (“-”
means loss)
43,320,265.96 -23,998,850.02 134,326,690.62 148,073,659.08
Less: Tax expense 10,564,856.20 5,015,664.91 22,829,078.96 19,589,842.11
V. Net profit (“-” means
loss)
32,755,409.76 -29,014,514.93 111,497,611.66 128,483,816.97
-Attributable to parent
company
26,344,833.39 -29,014,514.93 107,383,602.56 128,483,816.97
-Minority interest 6,410,576.37 4,114,009.10
VI. Earnings per share
(I) Basic earnings per share 0.0219 -0.0241 0.0892 0.1067
(II) Diluted earnings per
share
0.0219 -0.0241 0.0892 0.1067
VII. Other comprehensive
income
-218,665.84 -218,665.84 -238,561.62 -238,561.62
VIII. Total comprehensive
income
32,536,743.92 -29,233,180.77 111,259,050.04 128,245,255.35
Total comprehensive income
attributable to owner of
parent company
26,126,167.55 -29,233,180.77 107,145,040.94 128,245,255.35
Total comprehensive income
attributable to minority
shareholders
6,410,576.37 0.00 4,114,009.10 0.00
4.3 Income statement from the year-begin to the end of reporting peirod
Prepared by Konka Group Co., Ltd Jan.-Sep. 2009 Unit: RMB
Yuan
Jan.-Sep. 2009 Jan.-Sep. 2008
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 9,025,977,839.56 7,674,833,760.83 9,026,727,739.01 7,635,779,513.19
Including: Sales 9,025,977,839.56 7,674,833,760.83 9,026,727,739.01 7,635,779,513.19
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 8,916,193,390.75 7,666,599,691.69 8,794,421,895.57 7,420,305,740.17
Including: Cost of sales 7,353,006,874.32 6,373,687,552.74 7,334,806,973.41 6,277,610,311.72
Interests expenses
Service charge and commission
income
Cash surrender value
Claim expenses-net
Provision for insurance
contract reserves-net
Insurance policy dividend
paid
Reinsurance expense
Business taxes and surcharges 2,245,012.60 764,313.61 1,823,949.99 54,054.67
Distribution expenses 1,194,700,330.45 1,052,296,455.44 1,144,658,923.06 972,480,965.31
Administrative expenses 331,940,106.45 214,194,849.50 315,046,795.56 216,926,285.9210
Financial costs 38,868,613.93 30,608,027.25 5,344,444.32 -37,471,068.24
Impairment loss -4,567,547.00 -4,951,506.85 -7,259,190.77 -9,294,809.21
Add: gain/(loss) from change
in fair value (“-” means
loss)
10,623,434.10 10,623,434.10
Gain/(loss) from investment
(“-” means loss)
1,334,482.70 1,401,291.95 5,000,082.85 50,241,723.11
Including: income form
investment on affiliated
enterprise and jointly
enterprise
-575,255.31
Foreign exchange difference
(“-” means loss)
III. Business profit (“-”
means loss)
121,742,365.61 20,258,795.19 237,305,926.29 265,715,496.13
Add: non-business income 11,924,159.22 6,511,410.16 6,527,673.55 3,269,190.46
Less: non-business expense 2,743,685.85 1,392,944.57 8,668,560.23 4,848,530.41
Including: loss from
non-current asset disposal
1,018,815.05 675,209.14 2,661,199.71 467,433.13
IV. Total profit (“-”
means loss)
130,922,838.98 25,377,260.78 235,165,039.61 264,136,156.18
Less: Tax expense 23,180,948.73 11,868,803.21 38,096,636.89 31,307,104.24
V. Net profit (“-” means
loss)
107,741,890.25 13,508,457.57 197,068,402.72 232,829,051.94
-Attributable to parent
company
106,646,848.40 13,508,457.57 187,938,829.77 232,829,051.94
-Minority interest 1,095,041.85 9,129,572.95
VI. Earnings per share
(I) Basic earnings per share 0.0886 0.0112 0.1561 0.1934
(II) Diluted earnings per
share
0.0886 0.0112 0.1561 0.1934
VII. Other comprehensive
income
372,576.56 372,576.56 -18,479,725.85 -18,479,725.85
VIII. Total comprehensive
income
108,114,466.81 13,881,034.13 178,588,676.87 214,349,326.09
Total comprehensive income
attributable to owner of
parent company
107,019,424.96 13,881,034.13 169,459,103.92 214,349,326.09
Total comprehensive income
attributable to minority
shareholders
1,095,041.85 0.00 9,129,572.95 0.00
4.4 Cash flow statement from the year-begin to the end of reporting peirod
Prepared by Konka Group Co., Ltd Jan.-Sep. 2009 Unit: RMB
Yuan
This period Last period
Items
Consolidation Parent company Consolidation Parent company
I. Cash flows from operating
activities
Cash received from sales
of goods or rending of
10,438,234,930.09 8,804,694,171.19 10,352,567,923.36 8,334,469,482.5011
services
Net increase of deposits
received and held for others
Net increase of loans
from central bank
Net increase of
inter-bank loans from other
financial assets
Cash received against
original insurance contract
Net Cash received from
reinsurance
Net increase of client
deposit and investment
Net increase of disposal
of tradable financial assets
Cash received as
Interests, fees and
commissions received
Net increase of
inter-bank fund received
Cash received under
repurchasing, net
Tax returned 70,594,162.83 15,821,280.80 51,398,124.17 127,171.99
Other cash received from
operating activities
179,628,852.19 287,793,267.26 352,667,328.04 255,913,029.15
Sub-total of cash inflow
from operating activities
10,688,457,945.11 9,108,308,719.25 10,756,633,375.57 8,590,509,683.64
Cash paid for goods and
services
8,450,889,306.77 7,511,836,747.08 8,608,668,126.94 7,111,343,614.17
Net increase of loans and
advances
Net increase of deposit
in central bank, banks and
other financial institutions
Cash paid for original
contract claim
Cash paid for interests,
fees and commission
Cash paid for policy
dividend
Cash paid to and for
employees
652,178,044.58 393,980,961.43 635,630,219.23 376,602,996.23
Cash paid for all types of
taxes
1,021,065,218.57 858,756,754.19 681,374,564.00 546,371,943.82
Other cash paid relating
to operating activities
619,016,186.77 509,618,481.76 911,040,122.85 605,605,702.02
Sub-total of cash
outflows
10,743,148,756.69 9,274,192,944.46 10,836,713,033.02 8,639,924,256.24
Net cash outflow in
operating activities
-54,690,811.58 -165,884,225.21 -80,079,657.45 -49,414,572.60
II. Cash Flows from Investing12
Activities
Cash received from return
of investments
166,820.00 166,820.00 28,307,682.22 33,516,841.77
Cash received from
investment income
51,291.95 1,401,291.95 5,428,766.15 53,191,595.33
Net cash received from
disposal of fixed assets,
intangible assets and other
long-term assets
9,365,186.55 8,161,759.93 371,027.76 240,710.00
Net cash received from
disposal of subsidiaries and
other operating units
Other cash received
relating to investing
activities
12,842,744.00
Sub-total of cash inflows
of investing activities
22,426,042.50 9,729,871.88 34,107,476.13 86,949,147.10
Cash paid for acquisition
of fixed assets, intangible
assets and other long-term
assets
197,393,691.27 18,686,283.55 74,753,029.94 18,288,448.03
Cash paid for acquisition
of investments
166,820.00 166,820.00 84,360.00 350,584,360.00
Net increase of pledge
loans
Net cash paid for
acquisition of subsidiaries
and other operating units
Other cash paid relating
to investing activities
Sub-total of cash
outflows of investing
activities
197,560,511.27 18,853,103.55 74,837,389.94 368,872,808.03
Net cash inflow from
investing activities
-175,134,468.77 -9,123,231.67 -40,729,913.81 -281,923,660.93
III. Cash Flows from
Financing Activities:
Cash received from
investment
6,093,075.82
Including: Cash received
from minority shareholders of
subsidiaries
6,093,075.82
Cash received from
borrowings
2,772,987,335.00 2,561,333,550.00 618,491,153.94 470,000,000.00
Cash received from bonds
issuing
Cash received relating to
financing activities
2,000,992,506.14 1,494,586,200.94
Sub-total of cash inflows
of financing activities
4,780,072,916.96 4,055,919,750.94 618,491,153.94 470,000,000.00
Cash paid for repayments
of borrowings
1,267,998,493.12 1,020,394,062.77 173,012,038.65 150,000,000.0013
Cash paid for dividends,
profit distribution or
interest
71,496,591.28 60,198,635.20 16,276,737.78 11,330,165.03
Including: dividends or
profits paid to minority
shareholders by subsidiaries
Other cash paid relating
to financing activities
2,806,444,846.85 2,593,994,694.61 694,513.72
Sub-total of cash
outflows of financing
activities
4,145,939,931.25 3,674,587,392.58 189,983,290.15 161,330,165.03
Net cash inflow from
financing activities
634,132,985.71 381,332,358.36 428,507,863.79 308,669,834.97
IV. Effect of foreign
exchange rate changes
-6,681,173.42 -6,188,917.55 -5,431,366.39
V. Net decrease in cash and
cash equivalents
397,626,531.94 200,135,983.93 302,266,926.14 -22,668,398.56
Add : Opening amount of
cash and cash equivalents
845,026,867.06 358,631,499.14 752,558,414.47 556,082,988.52
VI. Closing balance of cash
and cash equivalents
1,242,653,399.00 558,767,483.07 1,054,825,340.61 533,414,589.96
4.5 Auditor’s report
Audit opinion: Un-audited
Board of Directors of
Konka Group Co., Ltd
23 Oct. 2009
