KONKA GROUP CO., LTD.
THE THIRD QUARTERLY REPORT 2011
§1 Important Notice
1.1 The Board of Directors, the Supervisory Committee, directors, supervisors and
other senior management personnel 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 accept, individually and collectively,
the responsibility for the factuality, accuracy and completeness of the information
set forth herein.
1.2 The Financial Report in this quarterly report has not been audited by a CPA firm.
1.3 Hou Songrong, Person-in-charge of the Company, Yang Rong, Person-in-charge of
the accounting work, and Ruan Renzong, Person-in-charge of the accounting organ
(Financial manager) hereby confirm the factuality and completeness of the Financial
Report in this quarterly report.
§2. Company Profile
2.1 Main accounting data and financial indicators
Unit: RMB Yuan
As at 30 Sept. 2011 As at 31 Dec. 2010 Increase/decrease
Total assets (Yuan) 16,154,069,352.00 16,466,895,565.00 -1.90%
Owners ’ equity
attributable to
3,813,731,818.17 3,998,647,232.73 -4.62%
shareholders of the Company
(Yuan)
Share capital (Share) 1,203,972,704.00 1,203,972,704.00 0.00%
Net assets per share
attributable to
3.1676 3.3212 -4.62%
shareholders of the Company
(Yuan /share)
Increase/decr
Increase/decrea
Jul.-Sept. 2011 Jan.-Sept. 2011 ease
se year-on-year
year-on-year
Total operating revenue
4,546,305,272.92 0.11% 11,411,409,192.68 -8.57%
(Yuan)
Net profit attributable to
shareholders of the Company 30,780,597.23 199.10% -164,220,344.52 -368.43%
(Yuan)
Net cash flows generated
from operating activities - - -794,343,250.37 -174.63%
(Yuan)
Net cash flows per share
generated from operating - - -0.6598 -174.90%
activities (Yuan /share)
Basic EPS (Yuan /share) 0.0256 201.18% -0.1364 -368.50%
1
Diluted EPS (Yuan /share) 0.0256 201.18% -0.1364 -368.50%
Weighted average ROE (%) 0.81% 0.55% -4.21% -5.78%
Weighted average ROE after
deducting non-recurring -0.86% -1.00% -6.15% -7.20%
gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Non-applicable
Unit: RMB Yuan
Notes (If
Items of non-recurring gains and losses Amount
applicable)
Gains and losses from disposal of non-current assets -1,709,747.87
Government subsidies recorded into current gains and losses,
excluding those related closely to the routine business of
the Company and continuously enjoyed by the Company at fixed 16,607,698.40
amounts or ratios according to state policies and
regulations
Gains and losses on change in fair value from tradable
financial assets and tradable financial liabilities, as well
as investment income from disposal of tradable financial
37,090,829.01
assets and tradable financial liabilities and financial
assets available for sales except for effective hedging
related with normal businesses of the Company
Other non-operating incomes and expenses besides the above
6,291,807.79
each item mentioned
Other gain/loss items that satisfy the definition of
37,723,217.44
non-recurring gains and losses
Effect on minority interest -744,436.85
Effect on income tax -5,127,746.70
Total 90,131,621.22 -
2.2 Total number of shareholders at period-end and shareholding of top ten
shareholders holding tradable shares
Unit: share
Total number of shareholders at the
108,294
period-end
Shareholding of top ten shareholders holding tradable shares
Number of tradable shares
Full name of shareholder Type of share
held at period-end
Domestically listed
HOLY TIME GROUP LIMITED 56,083,474
foreign shares
OVERSEAS CHINESE TOWN ENTERPRISES
30,372,843 RMB ordinary shares
CO.
Domestically listed
GAOLING FUND,L.P. 26,400,625
foreign shares
ABC-CHINA AMC STABLE GROWTH FUND 16,000,000 RMB ordinary shares
Domestically listed
NAM NGAI 11,760,520
foreign shares
CNCA A/C COMPAGNIE FINANCIERE 7,726,097 Domestically listed
2
EDMOND DE ROTHSCHILD foreign shares
GUANGZHOU MUNICIPAL ENGINEERING
4,417,696 RMB ordinary shares
SUPERVISION CO., LTD.
XIA RUI 3,700,000 RMB ordinary shares
Domestically listed
BOCI SECURITIES LIMITED 3,564,589
foreign shares
Domestically listed
YHG INVESTMENT, L.P. 2,967,661
foreign shares
§3 Significant Events
3.1 Significant changes in main accounting statement items and financial indicators
as well as reasons for these changes
√Applicable □Non-applicable
A. The main operating income for the nine months ended 30 Sept. 2011 decreased on
a year-on-year basis due to the following reasons:
a. This year, the government continued to cool down the real estate sector, leading
to an obvious drop of the sales of commercial houses. Besides, with rising living
costs, consumers became more prudent in purchasing household appliances and other
bulk commodities, which weakened the rigid demand for household appliances.
b. In a period when picture-tube TV sets were being broadly replaced by flat panel
ones in the color TV industry, the sales volume of picture-tube TV sets declined
rapidly.
c. Due to growing RMB appreciation against US dollars, chaotic overseas markets and
a harsher environment for export, the sales income from export fell as compared with
the same period of last year.
Due to the reasons above, the main operating income for the nine months ended 30
Sept. 2011 decreased 8.57% on a year-on-year basis.
B. The overall profitability for the first three quarters of 2011 decreased due to
the following reasons:
a. This year, competition in the domestic color TV and cell phone markets became
increasingly fierce. Product prices kept falling. And the product upgrading speeded
up, leading to higher R&D and manufacture costs.
b. Foreign brands adopted a low-price dumping strategy on Chinese markets to grab
more market shares. As a result, retail prices of whole machines kept falling, the
room for domestic household appliance brands to profit was squeezed, and the
profitability of homemade brands showed a significant drop.
c. A tight monetary policy made it hard and cost more to finance, which led to more
financial expense.
d. Due to the increase of minimum wage standards around the country, a rising CPI,
the implementation of the housing fund system in Shenzhen, etc., the labor expense
increased year on year, mainly on wages for employees (excluding manufacturing
workers) and housing funds.
Due to the reasons above, the net profit attributable to owners of the Company (as
the parent company) for the first three quarters declined 368.43% over the same period
3
of last year.
C. Explanations on movements of other main financial indicators
Unit: RMB Ten thousand
Rate of
31 Dec.
Item 30 Sept. 2011 Difference difference Main reasons for the difference
2010
(%)
Some interest receivable was
Interest collected and cleared,
1,051.75 2,529.80 -1,478.06 -58.43
receivable offsetting the interest
receivable item.
Inventory 280,877.19 372,363.61 -91,486.42 -24.57 Stocks of products were sold.
Transaction
NDF contracts were settled upon
al financial 1,276.58 6,495.71 -5,219.14 -80.35
maturity.
liabilities
Some interest payable was paid
Interest
852.31 2,675.11 -1,822.80 -68.14 and cleared, offsetting the
payable
interest payable item.
Investment by the Company ’ s
Long-term
wholly-owned subsidiary
equity 25,842.08 11,375.42 14,466.67 127.17
Dongguan Konka into EnRay Tek
investment
Optoelectronics
The Company’s subsidiaries paid
Dividend
323.22 797.61 -474.39 -59.48 dividends to minority
payable
shareholders.
Foreign-cur
rency
statement 781.26 1,638.05 -856.80 -52.31 RMB appreciation
translation
difference
Jan.-Sept. Jan.-Sept.
2011 2010
The city maintenance tax and the
Business tax educational surcharge levied on
3,044.98 244.44 2,800.54 1,145.72
and surtaxes foreign-invested enterprises
increased.
Interest expense increased due
Financial to the rising borrowings and
10,389.58 -190.08 10,579.66 5,565.83
expense interest rates on those
borrowings.
NDF contracts were settled upon
maturity. The gains from fair
value changes recognized
according to the difference
Gains from
between the NDF exchange rates
fair value 5,219.14 -278.11 5,497.24 1,976.68
from 31 Dec. 2010 to the
changes
settlement date (higher) and
the original NDF contractual
exchange rates (lower) were
reversed.
Investment gains from the
changes of owners’ equity of
Investment Shenzhen Refond
3,689.90 242.26 3,447.64 1,423.12
gains Optoelectronics Co., Ltd., one
of the Company’s jointly-run
subsidiaries
4
① New tax rebates due to
Non-busines
11,677.28 6,015.55 5,661.73 94.12 built-in software; ② more
s income
government subsidies
Income tax
2,758.30 4,314.47 -1,556.17 -36.07 Profit decreased.
expense
3.2 Progress of significant events as well as their influence and solutions
3.2.1 Non-standard audit opinion
□Applicable √Inapplicable
3.2.2 The Company provides funds for the controlling shareholder or its related
parties or provides external guarantees in violation of the prescribed procedure
□Applicable √Inapplicable
3.2.3 Significant contracts signed and executed concerning routine operation
□Applicable √Inapplicable
3.2.4 Others
√Applicable □Non-applicable
A. Progress in construction of internal control in the third quarter of 2011:
In accordance with the Announcement on Conducting Experimental Work of Internal Control
Standards of Listed Companies in Shenzhen Administration Area (Shen-Zheng-Ju-Gong-Si-Zi
[2011] No. 31), the Company was listed as one of the key experimental companies to carry
out internal control standards in Shenzhen Administration Area. As required by the
announcement, the Company arranged activities of internal control at once, and reported
the progress of internal control to Shenzhen Securities Regulatory Bureau.
On 26 Apr. 2011, the 9th Session of the 7th Board of Directors of the Company reviewed and
passed the Work Plan on Conducting Internal Control Standards of Konka Group Co., Ltd.
for Y2011. In the reporting period, the construction of internal control of the Company
went smoothly, with no difference from the scheduled progress in the work plan. Details
about the implementation of internal control are as below:
a. For the purpose of carrying forward the construction of internal control, the Company
set up a leading group, a work group, a special department for internal control, as well
as internal control work groups of all related subordinate companies, and defined duties
of the aforesaid organs.
b. The Company engaged a management consulting organ to assist in construction of internal
control.
c. The Company laid down the Work Plan on Conducting Internal Control Standards of Konka
Group Co., Ltd. for Y2011, which was reviewed and passed by the session of the Board of
Directors on 26 Apr., and was publicly announced on 28 Apr.
d. The Company conducted plenty of trainings for related staffs of the Company in terms
of the content, meaning, implementing procedures and measures of internal control
standards.
e. As reviewed and passed by the Board session and the Shareholders’ General Meeting,
the Company decided to engage RSM China Certified Public Accountants to audit on internal
control of the Company in 2011.
f. The Company combed procedures, identified risks, compiled the manuscript for internal
control work, searched defects, and reported defects for departments in functional center
of the headquarters, Dongguan Konka Electronic Co., Ltd., Anhui Konka Electronic Co., Ltd.,
Kunshan Konka Electronic Co., Ltd., Dongguan Konka Mould Plastic Co., Ltd., Konka Household
Appliances International Trading Co., Ltd., Shenzhen Konka Telecommunications Technology
Co., Ltd., and Anhui Konka Electronic Co., Ltd. By now, the Summary of Defects in Internal
Control and Rectification Proposals of the above eight companies has been reviewed and
approved by the leading group of internal control of the Company, and also submitted to
5
Shenzhen Bureau of CSRC for record. And all units and departments are making relevant
rectification in accordance with the passed Summary of Defects in Internal Control and
Rectification Proposals.
g. The Company is preparing and improving descriptions of key businesses and the control
matrix; besides, the first draft of the Company’s Manual on Internal Control has been
finished, which is further improved.
h. The Company is making the work plan on the self-appraisal phase for internal control.
B. The Company didn’t provide funds for the controlling shareholder or its related parties
or provide external guarantees in violation of the prescribed procedure.
3.3 Fulfillment of commitments made by the Company, shareholders and the actual
controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders with an over 5% shareholding, actual controller and other stakeholders
during the reporting period, or such commitments carried down into the reporting
period:
√Applicable □Non-applicable
Implementa
Commitment Promisor Contents of commitment
tion
(1) No trading or transferring of the
No listing
non-tradable shares of Konka Group held
and trading
by OCT Group would be conducted within
of the
24 months since the date when those
shares
shares became tradable in the A-share
subject to
Overseas market.
moratorium
Commitment made in Chinese Town (2) After the expiration of the
has been
the share reform Enterprises aforesaid commitment, the originally
applied.
Co. non-tradable shares of Konka Group sold
And those
by OCT Group through listing at the
shares have
stock exchange would not exceed 5% of
not been
Konka Group’s total shares within 12
transferre
months, and not exceed 10% within 24
d, either.
months.
Commitment in the
acquisition report
Naught Naught Naught
or the report on
equity changes
Commitment made in
the significant
Naught Naught Naught
asset
reorganization
Commitment made in
Naught Naught Naught
the issuance
Other commitments
(including Naught Naught Naught
supplementary ones)
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 reporting period
compared with the same period of last year, as well as explanation on reasons
6
□Applicable √Inapplicable
3.5 Other significant events that need to be explained
3.5.1 Investments into securities
□Applicable √Inapplicable
3.5.2 Reception of research, interviews and visits in the reporting period
Main discussion and
Time Place Way of reception Visitor information provided by the
Company
Inquiring about the Company’
Conference China s sales status of color TV
14 Jul. 2011 room of the Field research Securities industry in 2011 and the
Company Co., Ltd. relevant inventories of main
materials.
3.6 Derivative investments
√Applicable □Non-applicable
Analysis on risks and control measures of
In the NDF portfolio business, NDF was only used to
derivative products held in the reporting
lock up the forward exchange rate and avoid relevant
period (including but not limited to market
risks. The income from the NDF portfolio business
risk, liquidity risk, credit risk, operation
was fixed and risk-free.
risk, law risk, etc.)
Changes of market prices or fair values in the
reporting period of the invested derivatives. Because the income from the NDF portfolio business
And the analysis on the fair value of the was fixed and risk-free, there would not be
derivatives should include the specific use gain/loss fluctuations in the business or fair
methods and the relevant assumptions and value changes.
parameters.
Whether significant changes occurred to the
Compared with the last reporting period, no
Company ’ s accounting policy and specific
significant changes occurred to the Company ’ s
accounting principles of derivatives in the
accounting policy and specific accounting
reporting period compared to the previous
principals concerning the NDF portfolio business.
reporting period
Independent directors of the Company — Ms. Yang
Haiying, Mr. Feng Yutao and Mr. Zhang Zhong —
believed that: the NDF portfolio business could
help the Company benefit from fluctuations of
Specific opinion from independent directors on
renminbi exchange rates and gain fixed and
the Company’s derivatives investment and risk
risk-free incomes, so the business was necessary to
control
some degree; and the Company already improved the
internal control over derivatives investments and
the relevant risk control measure adopted were
feasible.
3.6.1 Positions of derivatives investments held at period-end
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion of the
Opening contract Closing contract Gain/loss in closing contract
Type of contract
amount amount reporting period amount in the
Company’s closing
7
net assets
USD loan + RMB pledged deposit
4,423,375,536.73 2,997,775,714.06 22,140,509.38 78.60%
+ NDF portfolio business
Total 4,423,375,536.73 2,997,775,714.06 22,140,509.38 78.60%
§4. Appendix
4.1 Balance sheet
Prepared by Konka Group Co., Ltd 30 Sept. 2011 Unit: RMB Yuan
Balance as at 30 Sept. 2011 Balance as at 31 Dec. 2010
Items
Consolidation The Company Consolidation The Company
Current assets:
Monetary funds 4,097,867,751.68 3,725,186,953.22 3,764,409,203.04 3,409,946,242.24
Settlement funds
Outgoing call loans
Transaction financial
asset
Notes receivable 3,887,376,696.77 3,677,669,973.82 4,149,313,159.56 4,068,533,543.35
Account receivable 2,083,994,299.86 1,365,673,509.56 1,971,135,371.91 1,312,217,694.50
Prepayment 633,678,320.11 1,420,752,605.03 446,971,672.32 347,600,391.31
Insurance premium
receivables
Reinsurance accounts
receivable
Reinsurance contract
reserve receivables
Interest receivable 10,517,471.08 10,501,759.41 25,298,029.66 24,924,331.91
Dividend receivable
Other accounts
35,907,600.11 916,485,728.62 92,135,651.57 574,826,602.17
receivable
Financial assets
purchased under agreements
to resell
Inventories 2,808,771,887.53 2,069,550,121.96 3,723,636,130.09 2,974,345,102.16
Non-current assets due
within 1 year
Other current assets
Total current assets 13,558,114,027.14 13,185,820,651.62 14,172,899,218.15 12,712,393,907.64
Non-current assets:
Loan and payment on
other’s behalf disbursed
Available for sale
1,715,634.56 1,715,634.56 1,830,598.36 1,830,598.36
financial assets
Held to maturity
investments
Long-term account
receivable
8
Long-term equity
258,420,848.64 1,653,402,169.87 113,754,190.13 1,653,402,169.87
investment
Investment property
Fixed asset 1,554,203,250.10 362,160,074.61 1,488,368,667.79 375,450,201.99
Project in process 318,206,505.39 271,418,690.07 231,508,246.34 149,152,895.63
Engineering material
Fixed asset disposal
Production biological
asset
Oil-gas assets
Intangible assets 195,888,962.75 25,968,697.57 191,483,451.66 18,318,487.30
Development expense
Goodwill 3,943,671.53 3,943,671.53
Long-term deferred
12,019,240.72 3,979,864.76 11,480,636.02 4,206,829.66
expense
Deferred tax assets 251,557,211.17 193,358,662.55 251,626,885.02 193,331,071.24
Other non-current assets
Total non-current assets 2,595,955,324.86 2,512,003,793.99 2,293,996,346.85 2,395,692,254.05
Total assets 16,154,069,352.00 15,697,824,445.61 16,466,895,565.00 15,108,086,161.69
Current liabilities:
Short-term borrowings 6,670,238,701.96 3,105,282,339.43 5,917,298,397.16 4,777,121,394.26
Borrowing from central
Bank
Deposits received and
held for others
Call loan received
Transaction financial
12,765,757.11 12,415,106.77 64,957,121.86 64,606,471.52
liabilities
Notes payable 1,107,760,066.00 3,087,278,427.94 2,031,883,915.56 1,788,018,888.54
Account payable 1,995,607,322.24 2,180,905,708.13 2,390,131,711.56 2,039,562,054.50
Account received in
319,580,968.95 1,956,388,044.17 316,613,909.66 973,828,552.00
advance
Financial assets sold
under agreements to
repurchase
Handling charges and
commission payable
Payroll payable 209,896,430.90 82,817,062.56 218,113,645.42 82,383,027.98
Taxes payable -32,882,637.19 -23,567,051.81 -170,794,740.44 -148,912,324.33
Interest payable 8,523,064.31 8,361,669.77 26,751,070.30 25,983,184.76
Dividend payable 3,232,249.69 980,912.96 7,976,122.23
Other payables 1,052,206,293.53 1,102,367,682.40 798,367,146.17 1,127,044,568.53
Account due to
reinsurance
9
Insurance contract
reserve
Entrusted trading of
securities
Entrusted selling of
securities
Non-current liabilities
due within 1 year
Other current
liabilities
Total current liabilities 11,346,928,217.50 11,513,229,902.32 11,601,298,299.48 10,729,635,817.76
Non-current liabilities:
Long-term borrowings 610,000,000.00 600,000,000.00 510,000,000.00 500,000,000.00
Bonds payable
Long-term payables 30,000,000.00 30,000,000.00
Specific payables
Estimated liabilities
Deferred taxes
563,067.21 563,067.21
liabilities
Other non-current
122,026,285.11 76,957,605.14 100,896,753.51 65,493,757.54
liabilities
Total non-current
762,589,352.32 676,957,605.14 641,459,820.72 565,493,757.54
liabilities
Total liabilities 12,109,517,569.82 12,190,187,507.46 12,242,758,120.20 11,295,129,575.30
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
1,203,972,704.00 1,203,972,704.00 1,203,972,704.00 1,203,972,704.00
capital)
Capital reserve 1,272,152,314.63 1,249,022,148.05 1,272,239,687.12 1,249,109,520.54
Less: treasury stock
Specific reserves
Surplus reserves 809,307,995.80 809,307,995.80 809,307,995.80 809,307,995.80
General risk provision
Retained earnings 520,486,226.19 245,334,090.30 696,746,297.76 550,566,366.05
Foreign exchange
7,812,577.55 16,380,548.05
difference
Total equity attributable
3,813,731,818.17 3,507,636,938.15 3,998,647,232.73 3,812,956,586.39
to owners of the Company
Minority interest 230,819,964.01 225,490,212.07
Total owner’s equity 4,044,551,782.18 3,507,636,938.15 4,224,137,444.80 3,812,956,586.39
Total liabilities and
16,154,069,352.00 15,697,824,445.61 16,466,895,565.00 15,108,086,161.69
owner’s equity
4.2 Income statement for Jul.-Sept. 2011
Prepared by Konka Group Co., Ltd Jul.-Sept. 2011 Unit: RMB Yuan
Items Jul.-Sept. 2011 Jul.-Sept. 2010
10
Consolidation The Company Consolidation The Company
I. Total sales 4,546,305,272.92 4,473,827,945.81 4,541,445,371.76 4,745,758,487.49
Including: Sales 4,546,305,272.92 4,473,827,945.81 4,541,445,371.76 4,745,758,487.49
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 4,606,711,929.66 4,588,016,719.00 4,510,631,044.80 4,760,001,233.17
Including: Cost of sales 3,871,416,388.17 4,014,952,684.77 3,851,812,648.68 4,238,426,004.81
Interests expenses
Handling charges and
commission income
Insurance discharge
payment
Claim expenses-net
Provision for insurance
contract reserves-net
Insurance policy
dividend paid
Reinsurance expense
Business taxes and
13,285,908.23 6,386,769.16 962,862.61 206,140.83
surcharges
Distribution expenses 551,397,463.86 464,241,049.26 558,617,739.19 486,859,850.53
Administrative expenses 138,216,668.52 89,979,162.86 123,794,703.26 63,351,327.13
Financial costs 32,468,491.26 12,457,052.95 -24,425,497.03 -28,842,090.13
Assets impairment loss -72,990.38 -131,411.91
Add: gain/(loss) from
change in fair value (“-” 37,524,641.15 37,524,641.15 2,553,854.00 1,409,434.00
means loss)
Investment gains (“-”
36,978,017.20 470,009.00 -892,110.00 450,000.00
means loss)
Including: income from
investment on affiliated
36,958,008.20
enterprise and jointly
enterprise
Foreign exchange
difference (“-” means
loss)
III. Operating profit (“-”
14,096,001.61 -76,194,123.04 32,476,070.96 -12,383,311.68
means loss)
Add: non-business income 35,539,234.93 27,805,456.62 7,791,011.74 2,023,308.96
Less: non-business
2,469,926.24 1,063,073.40 2,276,441.64 462,271.56
expense
Including: loss from
25,052.43 101,487.55 1,896,354.74 121,933.94
non-current asset disposal
IV. Total profit ( “ - ”
47,165,310.30 -49,451,739.82 37,990,641.06 -10,822,274.28
means loss)
Less: tax expense 12,611,668.69 501,164.06 23,360,537.65 11,047,990.64
11
V. Net profit (“-” means
34,553,641.61 -49,952,903.88 14,630,103.41 -21,870,264.92
loss)
Attributable to equity
30,780,597.23 -49,952,903.88 10,290,954.38 -21,870,264.92
holders of the Company
Minority interests 3,773,044.38 4,339,149.03
VI. Earnings per share
(I) Basic earnings per
0.0256 -0.0415 0.0085 -0.0182
share
(II) Diluted earnings
0.0256 -0.0415 0.0085 -0.0182
per share
Ⅶ. Other comprehensive
1,724,784.99 -107,878.28 593,364.33 148,232.92
income
Ⅷ. Total comprehensive
36,278,426.60 -50,060,782.16 15,223,467.74 -21,722,032.00
income
Attributable to owners
32,505,382.22 -50,060,782.16 10,884,318.71 -21,722,032.00
of the Company
Attributable to
3,773,044.38 0.00 4,339,149.03 0.00
minority shareholders
Where there were business combinations under the same control in this reporting
period, the combined parties achieved net profit of RMB 0.00 before the combinations.
4.3 Income statement for Jan.-Sept. 2011
Prepared by Konka Group Co., Ltd Jan.-Sept. 2011 Unit: RMB Yuan
Jan.-Sept. 2011 Jan.-Sept. 2010
Items
Consolidation The Company Consolidation The Company
I. Total sales 11,411,409,192.68 11,258,633,593.32 12,481,629,166.85 12,311,111,993.76
Including: Sales 11,411,409,192.68 11,258,633,593.32 12,481,629,166.85 12,311,111,993.76
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 11,740,424,135.14 11,694,738,287.81 12,416,345,058.59 12,392,626,137.61
Including: Cost of sales 9,708,348,434.88 10,111,243,616.79 10,552,065,965.08 10,925,030,556.42
Interests expenses
Handling charges and
commission income
Insurance discharge
payment
Claim expenses-net
Provision for insurance
contract reserves-net
Insurance policy
dividend paid
Reinsurance expense
Business taxes and
30,449,781.39 18,921,524.99 2,444,351.00 628,558.53
surcharges
Distribution expenses 1,513,052,702.71 1,219,585,826.75 1,486,457,373.21 1,273,079,448.29
12
Administrative expenses 386,306,253.40 283,020,026.46 370,243,827.84 202,929,328.40
Financial costs 103,895,773.27 61,967,292.82 -1,900,821.77 -12,588,547.96
Assets impairment loss -1,628,810.51 7,034,363.23 3,546,793.93
Add: gain/(loss) from
change in fair value (“-” 52,191,364.75 52,191,364.75 -2,781,054.00 -2,781,054.00
means loss)
Investment gains (“-”
36,898,964.63 470,009.00 2,422,550.27 19,553,481.38
means loss)
Including: income from
investment on affiliated
36,878,955.63 3,304,130.92
enterprise and jointly
enterprise
Foreign exchange
difference (“-” means
loss)
III. Operating profit (“-”
-239,924,613.08 -383,443,320.74 64,925,604.53 -64,741,716.47
means loss)
Add: non-business income 116,772,774.77 94,853,744.65 60,155,521.19 40,891,833.77
Less: non-business
5,585,513.35 2,040,687.57 6,793,303.70 2,156,241.93
expense
Including: loss from
1,191,160.03 806,440.79 2,179,678.84 334,394.62
non-current asset disposal
IV. Total profit ( “ - ”
-128,737,351.66 -290,630,263.66 118,287,822.02 -26,006,124.63
means loss)
Less: tax expense 27,583,026.62 2,562,285.05 43,144,710.14 14,321,070.15
V. Net profit (“-” means
-156,320,378.28 -293,192,548.71 75,143,111.88 -40,327,194.78
loss)
Attributable to equity
-164,220,344.52 -293,192,548.71 61,178,474.77 -40,327,194.78
holders of the Company
Minority interests 7,899,966.24 13,964,637.11
VI. Earnings per share
(I) Basic earnings per
-0.1364 -0.2435 0.0508 -0.0335
share
(II) Diluted earnings
-0.1364 -0.2435 0.0508 -0.0335
per share
Ⅶ. Other comprehensive
-8,655,342.990 -87,372.49 5,016,029.81 -220,519.34
income
Ⅷ. Total comprehensive
-164,975,721.27 -293,279,921.20 80,159,141.69 -40,547,714.12
income
Attributable to owners
-172,875,687.51 -293,279,921.20 66,194,504.58 -40,547,714.12
of the Company
Attributable to
7,899,966.24 0.00 13,964,637.11 0.00
minority shareholders
Where there were business combinations under the same control from the year-begin
to the period-end, the combined parties achieved net profit of RMB 0.00 before the
combinations.
4.4 Cash flow statement for Jan.-Sept. 2011
Prepared by Konka Group Co., Ltd Jan.-Sept. 2011 Unit: RMB Yuan
Items Jan.-Sept. 2011 Jan.-Sept. 2010
13
Consolidation The Company Consolidation The Company
1. Cash flows from operating
activities:
Cash received from sales
of goods or rendering of 12,269,432,059.59 11,382,523,548.13 13,160,180,103.69 11,634,182,835.89
services
Net increase of deposits
received and held for others
Net increase of loans
from central bank
Net increase of call
loans from other financial
institutions
Cash received against
original insurance contract
Net cash received from
reinsurance
Net increase of client
deposit and investment
Net increase of disposal
of held-for-trading
financial assets
Cash received as
interest, handling charges
and commissions
Net increase of call
loans
Net increase of cash
received under repurchasing
Tax and fare refunds 243,643,660.49 113,894,196.08 182,005,443.08 31,250,573.46
Other cash received from
218,962,461.55 522,369,397.91 294,359,512.85 838,857,408.02
operating activities
Sub-total of cash inflow
12,732,038,181.63 12,018,787,142.12 13,636,545,059.62 12,504,290,817.37
from operating activities
Cash paid for goods and
10,574,893,512.56 8,185,609,779.63 11,047,071,989.89 10,129,363,571.06
services
Net increase of loans and
advances from customers
Net increase of deposits
in central bank, banks and
other financial institutions
Cash paid for original
contract claims
Cash paid for interest,
fees and commissions
Cash paid for policy
dividend
Cash paid to and for
929,000,929.99 512,258,454.40 826,432,712.51 464,805,752.67
employees
Cash paid for various
1,064,652,862.77 845,802,570.12 1,126,160,078.88 879,517,009.26
taxes and fares
Other cash paid relating
957,834,126.68 1,122,801,586.08 926,125,534.56 861,602,614.71
to operating activities
Sub-total of cash
13,526,381,432.00 10,666,472,390.23 13,925,790,315.84 12,335,288,947.70
outflows from operating
14
activities
Net cash flows from
-794,343,250.37 1,352,314,751.89 -289,245,256.22 169,001,869.67
operating activities
II. Cash flows from investing
activities
Cash received from
95,940.00 95,940.00
investment retractions
Cash received from
20,009.00 470,009.00 10,529.35 19,553,481.38
investment gains
Net cash received from
disposal of fixed assets,
1,875,871.38 1,272,351.38 32,178,187.27 28,193,810.31
intangible assets and other
long-term assets
Net cash received from
disposal of subsidiaries and
other operating units
Other cash received
relating to investing 69,000,000.00
activities
Sub-total of cash
inflows of investing 1,895,880.38 1,742,360.38 101,284,656.62 47,843,231.69
activities
Cash paid for
acquisition of fixed assets,
288,187,542.00 132,487,235.71 273,522,150.82 105,038,569.57
intangible assets and other
long-term assets
Cash paid for
107,787,702.88 4,800,000.00 374,800,000.00
acquisition of investments
Net increase of pledge
loans
Net cash paid for
acquisition of subsidiaries
and other operating units
Other cash paid relating
69,000,000.00 69,000,000.00
to investing activities
Sub-total of cash
outflows of investing 395,975,244.88 132,487,235.71 347,322,150.82 548,838,569.57
activities
Net cash flows from
-394,079,364.50 -130,744,875.33 -246,037,494.20 -500,995,337.88
investing activities
III. Cash flows from
financing activities:
Cash received from
4,919,598.14
absorbing investment
Including: cash received
by subsidiaries from 4,919,598.14
minority shareholders
Cash received from
5,934,820,568.18 2,627,255,835.43 2,917,069,241.37 2,532,505,690.00
borrowings
Cash received from bonds
issuing
Other cash received
relating to financing 3,469,708,606.00 3,435,177,023.33 3,018,010,810.99 2,804,089,310.52
activities
Sub-total of cash
9,409,448,772.32 6,062,432,858.76 5,935,080,052.36 5,336,595,000.52
inflows of financing
15
activities
Cash paid for repayment
4,165,518,447.77 3,334,265,535.02 3,116,022,190.12 2,993,228,911.05
of borrowings
Cash paid for dividends,
profit distribution or 123,080,184.76 81,446,735.94 27,902,889.19 18,128,821.71
interest
Including: dividends or
profits paid to minority 1,123,404.76 3,056,053.45
shareholders by subsidiaries
Other cash paid relating
3,645,903,881.82 3,547,398,654.59 2,211,303,988.22 1,908,797,821.00
to financing activities
Sub-total of cash
outflows of financing 7,934,502,514.35 6,963,110,925.55 5,355,229,067.53 4,920,155,553.76
activities
Net cash flows from
1,474,946,257.97 -900,678,066.79 579,850,984.83 416,439,446.76
financing activities
IV. Effect of foreign
exchange rate on cash and -17,875,285.24 -5,033,080.79 -7,947,148.66 -3,723,831.97
cash equivalents
V. Net decrease in cash and
268,648,357.86 315,858,728.98 36,621,085.75 80,722,146.58
cash equivalents
Add : Opening amount of
569,524,994.01 255,364,835.76 749,501,416.29 341,440,119.99
cash and cash equivalents
VI. Closing balance of cash
838,173,351.87 571,223,564.74 786,122,502.04 422,162,266.57
and cash equivalents
4.5 Auditor’s report
Audit opinion: Un-audited
Konka Group Co., Ltd.
29 Oct. 2011
16
