KONKA GROUP CO., LTD.
THE FIRST QUARTERLY REPORT 2010
§1. Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors,
supervisors and senior executives of Konka Group Co., Ltd. (hereinafter
referred to as “the Company”) hereby guarantee that this report carries
no false information, misleading statements or major omissions, and will
accept, individually and collectively, the responsibility for factuality,
accuracy and completeness of the information set forth herein.
1.2 The Financial Report of this first quarterly report has not been
audited by a CPA firm.
1.3 Mr. Hou Songrong (Chairman of the Board of the Company), Mr. Yang Rong
(Chief Financial Officer of the Company) and Mr. Ruan Renzong
(Person-in-charge of the accounting agency and the accounting project)
hereby confirm that the Financial Report enclosed in this quarterly report
is factual and complete.
§2. Company Profile
2.1 Main accounting data and financial indicators
Unit: (RMB) Yuan
31 Mar. 2010 31 Dec. 2009 Increase/decrease (%)
Total assets (Yuan) 14,096,321,494.12 13,568,083,128.38 3.89
Owners’ equity attributable to
shareholders of listed company (Yuan)
3,915,376,179.19 3,875,367,861.56 1.03
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)
3.25 3.22 0.93
Jan.-Mar. 2010 Jan.-Mar. 2009
Increase/decrease
(%)
Total operation income (Yuan) 4,266,791,664.59 2,611,315,292.67 63.40
Net profit attributable to shareholders
of listed company (Yuan)
35,625,229.27 40,231,160.32 -11.45
Net cash flows arising from operating
activities (Yuan)
62,308,666.72 802,909,498.66 -92.24
Net cash flows per share arising from
operating activities (Yuan/share)
0.052 0.667 -92.20
Basic earnings per share (Yuan/share) 0.0296 0.0334 -11.38
Diluted earnings per share (Yuan/share) 0.0296 0.0334 -11.38
Weighted average ROE (%) 0.91% 1.05% -0.142
Weighted average ROE after deducting
non-recurring gains and losses (%)
0.62% 1.00% -0.38
Items of non-recurring gains and losses
Amount from year-begin
to period-end
Gains from disposal of non-current assets 11,426,375.45
Gains and losses from fair value changes in transactional financial assets and
liabilities held by the Company, as well as investment gains from disposing
transactional financial assets and liabilities and financial assets available for
sale, except for the effective hedging business related to the Company’s normal
operation
995,859.35
Other non-business incomes and expenses except for items above 1,873,254.40
Effect on income tax -2,964,813.24
Effect on minority interests -40,432.66
Total 11,290,243.30
Explanation on important items of non-recurring gains and losses:
The gains from disposal of non-current assets listed under the items of
non-recurring gains and losses came from the disposal of fixed assets.
2.2 Total number of shareholders at period-end and shareholding of top
ten shareholders holding shares not subject to trading moratorium
Unit: Share
Total number of shareholders at
period-end
93,054
Tradable shares held by top ten shareholders holding shares not subject to trading moratorium
Name of shareholder (full name)
Number of tradable shares not
subject to trading moratorium held
at period-end
Type of share
HOLY TIME GROUP LIMITED 43,597,200
Domestically listed foreign
shares
China Construction Bank—China Advantage
Growth Stock Fund
38,084,907 RMB ordinary shares
Overseas Chinese Town Group Corporation 30,372,843 RMB ordinary shares
GAOLING FUND,L.P. 26,400,625
Domestically listed foreign
shares
Agricultural Bank of China—Penghua
Motivity Growth Mixed Fund
25,276,532 RMB ordinary shares
BOCI SECURITIES LIMITED 20,334,459
Domestically listed foreign
shares
China Everbright Bank—First-Trust
Leading Strategy Open-ended Fund
15,692,693 RMB ordinary shares
Bank of China—Invesco Great Wall Dingyi
Stock Open-ended Fund
13,810,081 RMB ordinary shares3
NOMURA SECURITIES CO.LTD 13,500,000
Domestically listed foreign
shares
Industrial and Commercial Bank of
China—Hua An Mid-cap and Small-cap
Growth Stock Fund
12,113,097 RMB ordinary shares
§3. Significant Events
3.1 Major changes in main accounting statement items and financial
indicators, as well as reasons for such changes
√Applicable □Inapplicable
I. Sales income for the first quarter registered a year-on-year growth
63.40%, which was mainly due to the Company’s efforts in developing
distinct fine products and increasing product competitiveness.
In the report period, the Company continued and deepened the value
operation strategy, strengthened attack consciousness, an open mind and
consciousness of reform and innovation, and accelerated the reform of the
marketing organization. Meanwhile, it persisted in product innovation,
strengthened quality control and developed distinct fine products. As a
result, a rapid development took place in main businesses such as the color
TV business, the cell phone business and the white electricity business.
In terms of the color TV business, the Company seized opportunities
brought by the high-speed development of LED TVs and the rapid
popularization of Web TV, promoting the Wangrui LED TV brand. It took the
lead to popularize LED and Web TV and tried to take up a larger share in
the LCD market, which ensured the Company’s leading position in the
domestic color TV market.
In terms of the cell phone business, the Company made itself a distinct
cell phone maker in terms of speed, constantly improved the product
structure, expanded channels at home and abroad, and strictly controlled
risks so as to further solidify Konka’s position in the domestic cell
phone market.
In terms of the white electricity business, the Company studied market
trends, developed fine products with power conservation as the main line,
fashionable appearance, distinct preservation technologies and a high
performance cost ratio, and increased the product coverage rate so as to
achieve stable development of the white electricity business.
II. Due to reasons below, the net profit achieved by the Company in the
report period decreased as compared with the same period of 2009.
1. In the report period, in order to fight for a larger share in the
flat-panel TV market, most domestic and foreign color TV brands reduced
their product prices, which led to an enormously fierce price competition
in the flat-panel TV market. As a result, the gross profit rate of the4
Company’s flat-panel TVs decreased considerably from that at the same
period of last year.
2. In order to promote the Company’s brand influence in the flat-panel
TV market and fight for a large market share, expenses on market expansion
increased to some degree.
3. Progress of new product development slowed down, which had certain
impact on the profitability of color TV products in the report period.
Due to the aforesaid factors, the net profit attributable to owners of
the parent company achieved by the Company in the first quarter of 2010
went down as 11.45%compared with the same period of last year.
III. Non-business income increased by 310.49% from that at the same period
of last year, which was mainly due to incomes from fixed asset disposal
and penalties.
IV. Selling expenses increased by 49.74% from that at the same period of
last year, which was mainly because expenses on market expansion increased
to some degree in order to fight for a larger share in the flat-panel TV
market.
V. Cash flows from operating activities decreased by 92.24% from that at
the same period of last year, which was mainly due to much fewer discounts
of notes receivable this year.
3.2 Explanation and analysis on progress of significant events, as well
as relevant influence and solutions
□Applicable √Inapplicable
3.3 Fulfillment of commitments made by the Company, shareholders and
actual controller
√Applicable □Inapplicable
Commitment Covenanter Contents of commitments Execution
Commitments
concerning share
merger reform
OCT Group
Corporation
（1）To promise that all non-tradable shares of KONKA GROUP CO.,
LTD held by it will not be listed for trading or transferring within
24 months since the date when it acquires the right to list in A
share market. (2) At the expiration of the aforesaid commitment
period, the original non-tradable shares of KONKA GROUP CO., LTD
sold through listing at Stock Exchange shall take up less than 5%
of total shares of KONKA GROUP CO., LTD within 12 months, and less
than 10% within 24 months.
Up to now, there
was no share
subject to
moratorium
listed for
trading or
transferring.
Commitments
concerning share
trading
moratorium
Naught Naught Naught
Commitments made
in the purchase
report or the
Naught Naught Naught5
report on equity
changes
Commitments made
in major assets
reorganization
Naught Naught Naught
Commitments made
in stock issuance
Naught Naught Naught
Other commitments
(including
supplementary
commitments)
Naught Naught Naught
3.4 Warnings of possible losses or significant changes of the accumulative
net profit during the period from the year-begin to the end of the next
reporting period compared with the same period of last year according to
prediction, as well as explanations on the reasons
□Applicable √Inapplicable
3.5 Other significant events
3.5.1 Securities Investment
□Applicable √Inapplicable
3.5.2 Reception of research, communication and visits in the reporting
period
Date Place
Way of
communica
tion
Visitors Topics discussed and materials provided
5 Jan. 2010
Meeting room of
the Company
Field
research
Guosen Securities, Yinhua
Fund Management Co., Ltd
and Caitong Securities
Brokerage Co., Ltd
Core competitive power, completive status of LCD
TV products and the Company’s status in color TV
industry
8 Jan. 2010
Meeting room of
the Company
Field
research
Donghai Securities and
Sinosafe General Insurance
Co.Ltd
Development strategy of the Company’s color TV
business new products of LCD TV and completive
status of LCD TV products
13 Jan. 2010
Meeting room of
the Company
Field
research
Invesco Great Wall Fund
Management Co., Ltd,
Morgan Stanley Huaxin
Funds
Status quo and development trend of color TV
industry the Company’s status in color TV
industry and completive status of LCD TV products
20 Jan. 2010
Meeting room of
the Company
Field
research
Essence Securities
development trend of mobile phone of the Company,
market prospect of new products of color TV and
progress of relevant work
26 Jan. 2010
Meeting room of
the Company
Field
research
Xiangcai Securities Co.,
Ltd
Investment in LCD module projects, basic situation
of color TV, mobile phone and white electricity
27 Jan. 2010 Meeting room of Field Central China Securities Particulars about putting into production of LCD6
the Company research module, development trend of color TV industry
19 Mar. 2010
Meeting room of
the Company
Field
research
Guotai Junan Securities
Co., Ltd, Bosera Fund, Lion
Fund Management Co., Ltd,
Penghua Funds and Changrun
Asset Management
Core competitive power of the Company and sales of
products for “Pushing home appliances to
countryside”
22 Mar. 2010
Meeting room of
the Company
Field
research
Bank of China Investment
Management
Particulars about putting into production of LCD
module, competitive strategy of color TV
25 Mar. 2010
Meeting room of
the Company
Field
research
Bank of Communications
Schroder Fund Management
Co., Ltd
Particulars about color TV and mobile phone
business of the Company, market competitive power
of color TV of the Company
30 Mar. 2010
Meeting room of
the Company
Field
research
China Asset Management
Co., Ltd
Development trend of color TV industry, market
competitive power of color TV of the Company,
market prospect of new products of color TV and
progress of relevant work
3.5.3 Other significant events
□Applicable √Inapplicable
3.5.3 Other significant events
√Applicable □Inapplicable
Analysis on risks and control
measures of derivative products held
in the report period (including but
not limited to market risk, liquidity
risk, credit risk, operation risk,
law risk, etc.)
When the Company operated every NDF portfolio, yield to maturity is fixed
and there is no risk.
Main risks of NDF portfolio are as follows:
1. Risk from closing of bank pledged deposit, in case the bank close downs,
the pledged deposit is probably hard to call back in full.
2. Risk from foreign bank operated NDF portfolio being closed. In case the
foreign bank closes down, it is not possible to receive income from NDF
portfolio.
The Company always chooses large-sized bank similar as Bank of China to
cooperate to start NDF portfolio. Theses banks chosen by the Company operated
stably and healthily with good assets and credit, the probability of closing
was small. It is basically out of consideration of loss from closing brought
to the Company
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 the
specific use methods and the relevant
assumptions and parameters.
Yield to maturity of NDF portfolio business operated by the Company is fixed
and there is no change in fair value.
Whether significant changes occurred
to the Company’s accounting policy
Up to the public notice date, there is no special accounting method for NDF
portfolio business and accounting principle was in accordance with Accounting7
and specific accounting principles of
derivatives in the report period
compared to the previous report
period
Standards for Business Enterprises.
Specific opinion from independent
directors, sponsors or financial
consultants on the Company’s
derivatives investment and risk
control
Independent directors of the Company considered that NDF portfolio business
is good for benefit from fluctuation of rate of RMB and get fixed income
without risks, so it is necessary at some certain. The Company is gradually
perfecting internal control for investment on derivative products, and it
is feasible to adopted directed measures for risk control.
3.6.1 Holding of derivative products at the period-end
√Applicable □Inapplicable
Unit: RMB Yuan
Type
Beginning contract
amount
Closing contract
amount
Gains and losses
in the report
period
Proportion of closing contract
amount in net assets at the
period-end
NDF portfolio 2,584,356,800.00 3,011,823,650.00 746,924.62 76.92%
Total 2,584,356,800.00 3,011,823,650.00 746,924.62 76.92%
§4. Appendix
4.1 Balance sheet
Prepared by Konka Group Co., Ltd 31 Mar. 2010 Unit: RMB Yuan
Balance at period-end Balance at year-begin
Items
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 3,838,408,501.63 3,127,207,462.43 3,624,480,380.25 2,920,787,369.99
Settlement fund reserve
Dismantle fund
Transaction financial asset 4,658,494.00 3,766,384.00 3,673,164.00 2,781,054.00
Notes receivable 2,787,764,593.03 2,555,446,445.15 2,807,539,700.27 2,679,933,632.86
Account receivable 1,180,276,713.82 1,067,220,743.61 1,302,066,597.13 1,105,121,784.81
Account paid in advance 164,399,256.07 337,239,333.81 275,850,813.27 259,306,577.60
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve receivables
Interest receivable 29,249,452.49 26,713,017.10 32,529,920.96 29,442,469.13
Dividend receivable
Other account receivable 66,891,681.95 999,832,977.41 19,572,445.66 863,563,519.29
Financial assets purchased under agreements to
resell
Inventories 4,109,056,447.72 3,429,165,467.26 3,580,780,457.01 2,880,442,228.65
Non-current assets due within 1 year8
Other current assets
Total current assets 12,180,705,140.71 11,546,591,830.77 11,646,493,478.55 10,741,378,636.33
Non-current assets:
Loans and advance
Available for sale financial assets 10,018,505.00 10,018,505.00 10,268,121.10 10,268,121.10
Held to maturity investments
Long-term account receivable
Long-term equity investment 57,800,445.23 1,288,602,169.87 57,800,445.23 1,278,602,169.87
Investing property
Fixed asset 1,409,437,275.01 378,437,034.79 1,433,674,626.29 397,886,724.19
Project in construction 83,446,872.04 49,619,658.10 61,087,946.18 35,542,625.38
Engineering material
Fixed asset disposal 21,042,047.41 20,851,110.89
Bearer biological asset
Oil assets
Intangible assets 166,427,145.61 18,441,453.87 167,502,525.56 18,952,170.77
Development expense
Goodwill 3,943,671.53 3,943,671.53
Long-term expense to be apportioned 14,279,429.36 5,549,052.21 15,774,783.95 6,011,778.39
Deferred tax assets 149,220,962.22 137,945,439.24 150,686,419.10 139,410,896.12
Other non-current assets
Total of non-current assets 1,915,616,353.41 1,888,613,313.08 1,921,589,649.83 1,886,674,485.82
Total assets 14,096,321,494.12 13,435,205,143.85 13,568,083,128.38 12,628,053,122.15
Current liabilities:
Short-term loans 3,056,658,224.67 2,776,008,050.00 2,770,014,060.00 2,553,412,550.00
Loans from central bank
Deposits received and hold for others
Placements From Banks Other Financial
Institutions
Transaction financial liabilities
Notes payable 2,506,742,833.77 2,159,660,615.29 2,884,697,072.42 2,546,131,169.12
Account payable 2,100,806,864.12 2,246,395,884.84 2,599,242,285.04 2,490,629,061.71
Account received in advance 279,382,654.45 95,148,340.36 279,331,464.38 162,177,552.53
Financial assets sold under agreements to
repurchase
Handling charges and commission payable
Employee’s compensation payable 155,020,093.80 73,578,603.13 193,217,075.52 94,499,554.84
Tax payable -221,591,278.82 -160,532,915.20 -132,897,711.14 -74,701,335.32
Interest payable 21,768,518.82 19,810,821.96 23,633,016.78 21,675,319.92
Dividend payable 804,527.20 804,527.20
Other account payable 1,955,812,041.77 2,342,598,278.21 763,923,600.66 940,384,863.17
Due to reinsurers
Insurance contract reserve9
Customer deposits
Amount payables under security underwriting
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 9,855,404,479.78 9,552,667,678.59 9,381,965,390.86 8,734,208,735.97
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific purpose account payables
Estimated liabilities
Deferred tax liabilities 1,308,715.59 611,831.88 1,308,715.59 611,831.88
Other non-current liabilities 89,141,048.48 62,205,048.48 78,541,048.48 62,205,048.48
Total non-current liabilities 90,449,764.07 62,816,880.36 79,849,764.07 62,816,880.36
Total liabilities 9,945,854,243.85 9,615,484,558.95 9,461,815,154.93 8,797,025,616.33
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 1,257,329,860.22 1,249,199,693.64 1,257,449,727.58 1,249,319,561.00
Less: Treasury stock
Specific reserve
Reserved fund 809,307,995.80 804,258,523.06 809,307,995.80 809,307,995.80
General risk provision
Retained earnings 649,404,128.11 562,289,664.20 613,778,898.84 568,427,245.02
Foreign exchange difference -4,638,508.94 -9,141,464.66
Total owners’ equity attributable to holding
company
3,915,376,179.19 3,819,720,584.90 3,875,367,861.56 3,831,027,505.82
Minority interest 235,091,071.08 230,900,111.89
Total owner’s equity 4,150,467,250.27 3,819,720,584.90 4,106,267,973.45 3,831,027,505.82
Total liabilities and owner’s equity 14,096,321,494.12 13,435,205,143.85 13,568,083,128.38 12,628,053,122.15
4.2 Income statement
Prepared by Konka Group Co., Ltd Jan.-Mar. 2010 Unit: RMB Yuan
Amount in this period Amount in the previous period
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 4,266,791,664.59 4,057,208,187.95 2,611,315,292.67 2,215,990,440.32
Including: Sales 4,266,791,664.59 4,057,208,187.95 2,611,315,292.67 2,215,990,440.32
Interests income
Premium income
Handling charges and commission income
II. Total cost of sales 4,230,971,313.37 4,079,360,937.60 2,573,658,346.25 2,193,140,792.45
Including: Cost of sales 3,631,933,127.27 3,605,806,531.86 2,156,286,288.52 1,855,513,841.46
Interests expenses
Service charge and commission income10
Cash surrender value
Claim expenses-net
Provision for insurance contract reserves-net
Insurance policy dividend paid
Reinsurance expense
Business taxes and surcharges 930,892.10 224,064.47 335,691.09 32,243.60
Distribution expenses 460,555,582.14 387,981,203.70 307,567,109.71 267,162,582.20
Administrative expenses 121,238,958.23 72,609,369.19 100,666,366.22 65,200,389.93
Financial costs 22,162,244.21 19,554,612.11 12,951,059.59 9,783,944.26
Impairment loss -5,849,490.58 -6,814,843.73 -4,148,168.88 -4,552,209.00
Add: gain/(loss) from change in fair value
(“-” means loss)
985,330.00 985,330.00
Gain/(loss) from investment (“-” means loss) 10,529.35 10,529.35
Including: income form investment on affiliated
enterprise and jointly enterprise
Foreign exchange difference (“-” means loss)
III. Business profit (“-” means loss) 36,816,210.57 -21,156,890.30 37,656,946.42 22,849,647.87
Add: non-business income 15,621,101.47 13,303,772.47 3,805,441.94 1,776,910.89
Less: non-business expense 2,321,471.62 339,448.58 817,792.05 475,236.05
Including: loss from non-current asset disposal 1,704,521.45 112,753.59 366,211.13 204,163.93
IV. Total profit (“-” means loss) 50,115,840.42 -8,192,566.41 40,644,596.31 24,151,322.71
Less: Tax expense 10,299,651.96 2,994,487.15 4,062,155.42 1,040,906.12
V. Net profit (“-” means loss) 39,816,188.46 -11,187,053.56 36,582,440.89 23,110,416.59
-Attributable to parent company 35,625,229.27 -11,187,053.56 40,231,160.32 23,110,416.59
-Minority interest 4,190,959.19 -3,648,719.43
VI. Earnings per share
(I) Basic earnings per share 0.0296 -0.0093 0.0334 0.1934
(II) Diluted earnings per share 0.0296 -0.0093 0.0334 0.1934
Ⅶ. Other comprehensive income 4,383,088.36 -119,867.36 325,965.11 0.00
Ⅷ. Total comprehensive income 44,199,276.82 -11,306,920.92 36,908,406.00 23,110,416.59
Attributable to owners of parent company 40,008,317.63 -11,306,920.92 40,557,125.43 23,110,416.59
Attributable to minority shareholders 4,190,959.19 0.00 -3,648,719.43 0.00
4.3 Cash flow statement
Prepared by Konka Group Co., Ltd Jan.-Mar. 2010 Unit: RMB Yuan
Amount in this period Amount in the previous period
Items
Consolidation Parent company Consolidation Parent company
I. Cash flows from operating activities
Cash received from sales of goods or rending
of services
4,720,978,879.59 3,968,062,175.85 3,776,653,886.48 3,235,207,703.10
Net increase of deposits received and held for
others
Net increase of loans from central bank11
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 65,799,521.84 9,037,696.26 18,717,923.13 8,178,612.00
Other cash received from operating activities 98,402,884.47 241,162,937.17 93,669,493.85 24,642,501.83
Sub-total of cash inflow from operating
activities
4,885,181,285.90 4,218,262,809.28 3,889,041,303.46 3,268,028,816.93
Cash paid for goods and services 3,753,815,185.01 3,410,254,933.72 2,317,602,968.35 2,183,739,659.17
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 303,976,986.43 171,755,451.45 250,408,626.70 152,092,114.26
Cash paid for all types of taxes 439,190,665.59 352,953,464.00 294,783,090.76 248,019,254.34
Other cash paid relating to operating
activities
325,889,782.15 290,804,472.03 223,337,118.99 162,218,767.69
Sub-total of cash outflows 4,822,872,619.18 4,225,768,321.20 3,086,131,804.80 2,746,069,795.46
Net cash outflow in operating activities 62,308,666.72 -7,505,511.92 802,909,498.66 521,959,021.47
II. Cash Flows from Investing Activities
Cash received from return of investments 95,940.00 95,940.00
Cash received from investment income 10,529.35 10,529.35
Net cash received from disposal of fixed
assets, intangible assets and other long-term
assets
22,271,191.54 20,731,311.54 1,908,031.60 1,115,630.21
Net cash received from disposal of
subsidiaries and other operating units
Other cash received relating to investing
activities
13,640,000.00
Sub-total of cash inflows of investing
activities
36,017,660.89 20,837,780.89 1,908,031.60 1,115,630.21
Cash paid for acquisition of fixed assets,
intangible assets and other long-term assets
53,138,753.62 16,682,803.38 61,725,365.97 624,304.4812
Cash paid for acquisition of investments 10,000,000.00
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
53,138,753.62 26,682,803.38 61,725,365.97 624,304.48
Net cash inflow from investing activities -17,121,092.73 -5,845,022.49 -59,817,334.37 491,325.73
III. Cash Flows from Financing Activities:
Cash received from investment
Including: Cash received from minority
shareholders of subsidiaries
Cash received from borrowings 453,343,192.74 376,230,000.00 3,000,000.00
Cash received from bonds issuing
Cash received relating to financing
activities
50,710,818.47 50,680,356.17 938,373,800.28 901,296,005.42
Sub-total of cash inflows of financing
activities
504,054,011.21 426,910,356.17 941,373,800.28 901,296,005.42
Cash paid for repayments of borrowings 76,033,174.10 34,206,000.00 211,509,922.39 199,775,772.34
Cash paid for dividends, profit distribution
or interest
1,173,792.71 1,139,872.98 3,597,978.03 8,340.00
Including: dividends or profits paid to
minority shareholders by subsidiaries
Other cash paid relating to financing
activities
396,763,432.50 376,230,000.00 709,534,561.56 709,533,838.65
Sub-total of cash outflows of financing
activities
473,970,399.31 411,575,872.98 924,642,461.98 909,317,950.99
Net cash inflow from financing activities 30,083,611.90 15,334,483.19 16,731,338.30 -8,021,945.57
IV. Effect of foreign exchange rate changes -2,546,700.56 -2,665,106.35 -171,373.86
V. Net decrease in cash and cash equivalents 72,724,485.33 -681,157.57 759,652,128.73 514,428,401.63
Add : Opening amount of cash and cash
equivalents
749,501,416.29 341,440,119.99 845,026,867.06 358,631,499.14
VI. Closing balance of cash and cash equivalents 822,225,901.62 340,758,962.42 1,604,678,995.79 873,059,900.77
4.4 Auditor’s report
Audit opinion: Un-audited
Board of Directors of
Konka Group Co., Ltd
Apr. 30, 2010
