KONKA GROUP CO., LTD.
THE THIRD QUARTERLY REPORT 2012
I. Important Notes
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.
All directors attended the board session for reviewing this report.
Hou Songrong, Person-in-charge of the Company, Yang Rong, Person-in-charge of the accounting work, and Xu
Youshan, Person-in-charge of the accounting organ (Financial manager) hereby confirm the factuality and
completeness of the Financial Report in this quarterly report.
II. Company Profile
（I）Major accounting data and financial indexes
Any retrospective adjustment in previous financial statements?
□ Yes √ No □ Inapplicable
30 Sept. 2012 31 Dec. 2011 Increase/decrease (%)
Total assets (RMB Yuan) 16,391,932,733.65 16,906,453,313.31 -3.04%
Owners’ equity attributable
to shareholders of the 4,007,757,905.40 4,009,723,963.82 -0.05%
Company (RMB Yuan)
Share capital (Share) 1,203,972,704.00 1,203,972,704.00 0%
Net assets per share
attributable to shareholders
of the Company (RMB 3.3288 3.3304 -0.05%
Yuan/share)
YoY increase/decrease YoY increase/decrease
Jul.-Sept. 2012 Jan.-Sept. 2012
(%) (%)
Gross operating revenues
(RMB Yuan) 5,258,403,188.65 15.66% 12,297,326,326.42 7.76%
Net profit attributable to
shareholders of the Company 5,395,788.27 -82.47% 16,863,079.95 110.27%
(RMB Yuan)
Net cash flow from operating
activities (RMB Yuan) -- -- 855,593,232.53 207.71%
Net cash flow per share from
operating activities (RMB -- -- 0.7106 207.71%
Yuan/share)
Basic EPS (RMB
Yuan/share) 0.0045 -82.47% 0.014 110.27%
Diluted EPS (RMB
Yuan/share) 0.0045 -82.47% 0.014 110.27%
Weighted average ROE (%) 0.1347% -0.6753% 0.4204% 4.6304%
Weighted average ROE after -0.0334% 0.8266% -0.9907% 5.1593%
1
deducting non-recurring
gains and losses (%)
Items of non-recurring gains and losses
√Applicable □Inapplicable
Amount during Jan.-Sept. 2012
Item Notes
(RMB Yuan)
Gains and losses on disposal of non-current assets 8,191,155.51
Tax rebate, reduction or exemption due to un-authorized approval or the lack of
formal approval documents
Government grants recognized in the current year, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to 35,121,720.18
the country’s unified standards
Capital occupation fees received from non-financial enterprises that are included in
current gains and losses
Gains generated when the investment costs of the Company’s acquiring
subsidiaries, associates and joint ventures are less than the fair value of identifiable
net assets in the investees attributable to the Company in the acquisition of the
investments
Exchange gains and losses of non-monetary assets
Gains and losses through entrusting others to invest or manage assets
Various asset impairment provisions due to acts of God such as natural disasters
Gains and losses on debt restructuring
Enterprise reorganization expenses, such as expenses on employee settlement and
integration
Gains and losses on the parts exceeding the fair value when prices of transactions
become unfair
Net current gains and losses from the period-begin to the combination date of
subsidiaries due to business combinations under the same control
Gains and losses on contingent matters which are irrelevant to the normal operation
of the Company
Gains and losses on fair value changes of transactional financial assets and
liabilities, and investment gains on disposal of transactional financial assets and
liabilities and available-for-sale financial assets, except for the effective hedging 27,226,435.86
business related to the Company’s normal operation
Reversal of impairment provisions for accounts receivable which are separately
tested for impairment signs
Gains and losses on entrustment loans from external parties
Gains and losses on fair value changes of investing properties for which the fair
value method is adopted for subsequent measurement
Current gain and loss effect due to a just-for-once adjustment to current gains and
losses according to requirements of taxation and accounting laws and regulations
Custodian fee income from entrusted operations with the Company
Other non-operating incomes and expenses besides the items above 4,055,478.14
Other gain and loss items that meet the definition of non-recurring gains and losses 91,013.92
Minority interests effects -710,285.13
Income tax effects -17,378,011.15
Total 56,597,507.33 --
“Other gain and loss items that meet the definition of non-recurring gains and losses” & non-recurring gain and
loss items recognized as recurring gain and loss items according to the natures and characteristics of the
Company’s normal business
2
Item Involved amount (RMB Yuan) Notes
Income arising from disposal of long-term equity
91,013.92
investment
（IIII）Total number of shareholders and top 10 shareholders at the period-end
Total number of shareholders 100,764
Particulars about shares held by the top ten shareholders holding tradable shares
Number of tradable Type and number of shares
Name of shareholder shares held at
period-end Type Number
Domestically listed foreign
HOLY TIME GROUP LIMITED 58,454,400 58,454,400
shares
OVERSEAS CHINESE TOWN
30,372,843 RMB ordinary shares 30,372,843
ENTERPRISES CO.
Domestically listed foreign
GAOLING FUND,L.P. 26,400,625 26,400,625
shares
Domestically listed foreign
NAM NGAI 11,760,520 11,760,520
shares
LI YICHAO 5,391,181 RMB ordinary shares 5,391,181
XIA RUI 5,006,500 RMB ordinary shares 5,006,500
GUOTAI JUNAN
Domestically listed foreign
SECURITIES(HONGKONG) 3,733,500 3,733,500
shares
LIMITED
CHINA SECURITIES CO., LTD.—
CUSTOMER CREDIT
3,465,886 RMB ordinary shares 3,465,886
GUARANTEE SECURITIES
ACCOUNT
TONGYI INVESTMENT FUND 2,999,946 RMB ordinary shares 2,999,946
Domestically listed foreign
YHG INVESTMENT, L.P. 2,967,661 2,967,661
shares
Among the shareholders above, the first majority shareholder OVERSEAS CHINESE
TOWN ENTERPRISES CO. has no related-party relationship with other shareholders
Particulars of shareholders and they are not acting-in-concert parties, either. Except for that, the Company does not
know whether the other shareholders are related parties and whether they are
acting-in-concert parties.
III. Significant Events
（I ） Significant changes in major accounting data, financial highlights and reasons for these
changes
√Applicable □Inapplicable
1. For the first three quarters of this year, the operating revenues and the net profit attributable to owners of the
Company increased 7.76% and 110.27% respectively over the same period of last year. During the reporting
period, regarding its color TV business, the Company proactively launched differential 3D TV, intelligent TV and
LED TV products, which greatly optimized the product structure and resulted in a steadily improving operating
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efficiency and profitability as compared with the same period of last year.
2. For the first three quarters of this year, interest receivable decreased 78.19% over the same period of last year,
which was mainly because the interest received by the Company offset some interest receivable.
3. For the first three quarters of this year, prepayments decreased 47.95% over the same period of last year, which
was mainly because the prepayments for land at the period-begin were transferred into development costs after the
land license was obtained.
4. For the first three quarters of this year, available-for-sale financial assets decreased 84.57% over the same
period of last year, which was mainly because some shares of Churin Group originally held by the Company were
sold in the reporting period.
5. For the first three quarters of this year, intangible assets increased 50.51% over the same period of last year,
which was mainly because the prepayments for land at the period-begin were transferred into development costs
after the land license was obtained.
6. For the first three quarters of this year, transactional financial liabilities decreased 100% over the same period
of last year, which was mainly because mature NDF transactions were settled and the transactional financial
liabilities decreased accordingly.
7. For the first three quarters of this year, taxes and fares payable decreased 103.57% over the same period of last
year, which was mainly because the overpaid VAT at the period-end increased.
8. For the first three quarters of this year, interest payable decreased 46.18% over the same period of last year,
which was mainly because some interest was paid and the interest payable was offset.
9. For the first three quarters of this year, long-term borrowings increased 98.36% over the same period of last
year, which was mainly because the Company filled up capital gaps with long-term borrowings.
10. For the first three quarters of this year, projected liabilities decreased 78.12% over the same period of last year,
which was mainly because the shutdown expenses of Shaanxi Konka Electronic Co., Ltd. recognized last year
were actually paid during the reporting period.
11. For the first three quarters of this year, financial expenses increased 53.86% over the same period of last year,
which was mainly because the exchange loss increased due to exchange rate fluctuations during the reporting
period.
12. For the first three quarters of this year, gains on fair value changes decreased 57.65% over the same period of
last year, which was mainly because some NDF portfolio transactions grew mature in the reporting period and
resulted in the reversal of some gains on fair value changes.
（IIII）Progress of significant events and its influence, as well as the analysis and explanation on
solutions
1. About non-standard audit opinion
□Applicable √Inapplicable
2. The Company offers capital to the controlling shareholder or its related parties or provides
external guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
3. Signing and execution of significant contracts concerning routine operation
□Applicable √Inapplicable
4. Others
√Applicable □Inapplicable
4
In accordance with the Notice on Conducting Experimental Work of Internal Control Standards of Listed
Companies in Shenzhen Administration Area (Shen-Zheng-Ju-Gong-Si-Zi [2011] No.31) and the Notice on Doing
a Better Job in Implementation of Internal Control Regulations in Listed Companies in Shenzhen
(Shen-Zheng-Ju-Fa [2012] No. 105), the Company undertook standardizing work of internal control and
submitted process of internal control to Shenzhen SRC with requirements.
During the reporting period, the Company mainly accomplished the following specific work in relation to internal
control improvement:
A. According to the work plan for the internal control self-appraisal phase, the Company rectified the internal
control defects found in the appraisal.
B. RSM China Certified Public Accountants Co., Ltd. audited the internal control of the Company for 2011 and
the Company rectified the internal control defects found in the audit.
C. The internal audit department of the Company worked out and disclosed the 2011 Annual Internal Control
Self-Appraisal Report.
D. The Company conducted work such as comb of process, recognition of risks, preparation of manuscript of
internal control, check of flaws, report of flaw and so on to the Digital Network
（ III Commitments of the Company or shareholders with an over 5% shareholding made in or carried
down into the reporting period
□Applicable √Inapplicable
（IV Predict the 2012 annual operating results
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the
beginning of the year to the end of the next reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
（V）Other significant events that need to be explained
1. Securities investment
□Applicable √Inapplicable
2. Investments in derivatives
√Applicable □Inapplicable
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
Analysis on risks and control measures of derivative
downs, the pledged deposit is probably hard to call back in full.
products held in the reporting period (including but
2. Risk from foreign bank operated NDF portfolio being closed. In case
not limited to market risk, liquidity risk, credit risk,
the foreign bank closes down, it is not possible to receive income from
operation risk, law risk, etc.)
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
5
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
reporting period of the invested derivatives. And the
Yield to maturity of NDF portfolio business operated by the Company is
analysis on the fair value of the derivatives should
fixed and there is no change in fair value.
include the specific use methods and the relevant
assumptions and parameters.
Whether significant changes occurred to the
Up to the public notice date, there is no special accounting method for
Company’s accounting policy and specific
NDF portfolio business and accounting principle was in accordance with
accounting principles of derivatives in the reporting
Accounting Standards for Business Enterprises.
period compared to the previous reporting period
Independent directors of the Company considered that NDF portfolio
business is good for benefit from fluctuation of rate of RMB and get
Specific opinion from independent directors on the fixed income without risks, so it is necessary at some certain. The
Company’s derivatives investment and risk control Company is gradually perfecting internal control for investment on
derivative products, and it is feasible to adopted directed measures for
risk control.
3. Derivative investments held at the period-end
√Applicable □Inapplicable
Proportion of the closing
Opening contract Closing contract Gain or loss in the contract amount in the
Type of contract
amount (RMB Yuan) amount (RMB Yuan) reporting period closing net assets of the
Company (%)
NDF portfolio business 2,155,905,808.20 0.00 0.00 0%
Total 2,155,905,808.20 0.00 0.00 0%
4. Researches, visits and interviews received in the reporting period
Main discussion
and materials
Time of reception Place of reception Way of reception Visitor type Visitor
provided by the
Company
5. Corporate bonds issued
Any corporate bonds issued?
□ Yes √ No
IV. Appendix
(I) Financial statements
Consolidated statements or not?
√ Yes □ No □ Inapplicable
The currency unit for data of the financial statements below is RMB Yuan unless otherwise specified.
1. Consolidated balance sheet
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 3,334,263,309.42 2,701,892,431.70
Settlement reserves
Intra-group lendings
6
Transactional financial assets
Notes receivable 3,931,011,938.75 4,865,963,486.09
Accounts receivable 2,290,561,538.95 1,893,039,292.61
Accounts paid in advance 298,964,734.80 574,363,453.07
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 9,514,446.79 43,626,559.44
Dividend receivable
Other accounts receivable 158,740,206.85 134,333,284.70
Financial assets purchased under
agreements to resell
Inventories 3,352,668,582.98 2,829,591,759.41
Non-current assets due within 1 year
Other current assets 911,000,000.00
Total current assets 13,375,724,758.54 13,953,810,267.02
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 988,923.30 6,408,065.70
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 271,291,808.59 271,188,014.48
Investing property 237,036,387.71 241,105,035.18
Fixed assets 1,747,893,721.77 1,779,259,823.65
Construction in progress 134,553,361.92 118,905,008.92
Engineering materials
Disposal of fixed assets 1,242.50
Production biological assets
Oil-gas assets
Intangible assets 292,563,819.93 194,383,622.95
R&D expense
Goodwill 3,943,671.53 3,943,671.53
Long-term deferred expenses 5,468,318.93 10,152,203.66
Deferred income tax assets 322,466,718.93 327,297,600.22
Other non-current assets
Total of non-current assets 3,016,207,975.11 2,952,643,046.29
Total assets 16,391,932,733.65 16,906,453,313.31
Current liabilities:
Short-term borrowings 5,322,820,012.33 6,835,265,235.56
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Transactional financial liabilities 22,101,173.97
7
Notes payable 1,012,753,595.00 799,094,173.72
Accounts payable 2,766,211,413.50 2,530,352,186.42
Accounts received in advance 304,726,845.51 349,544,262.93
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 220,537,108.50 267,353,845.13
Tax payable -1,183,300.31 33,174,908.08
Interest payable 14,233,492.68 26,446,960.89
Dividend payable 893,356.37
Other accounts payable 1,149,444,767.61 1,029,139,182.06
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 10,790,437,291.19 11,892,471,928.76
Non-current liabilities:
Long-term borrowings 1,210,000,000.00 610,000,000.00
Bonds payable
Long-term payables 30,000,000.00 30,000,000.00
Specific payables
Estimated liabilities 4,411,899.75 20,163,356.00
Deferred income tax liabilities 563,067.21 1,370,569.08
Other non-current liabilities 122,987,143.53 115,820,202.99
Total non-current liabilities 1,367,962,110.49 777,354,128.07
Total liabilities 12,158,399,401.68 12,669,826,056.83
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,203,972,704.00 1,203,972,704.00
Capital reserves 1,272,271,638.04 1,275,686,262.22
Less: Treasury stock
Specific reserves
Surplus reserves 809,307,995.80 809,307,995.80
Provisions for general risks
Retained profits 714,502,761.75 709,679,408.84
Foreign exchange difference 7,702,805.81 11,077,592.96
Total equity attributable to owners of the
Company 4,007,757,905.40 4,009,723,963.82
Minority interests 225,775,426.57 226,903,292.66
Total owners’ (or shareholders’) equity 4,233,533,331.97 4,236,627,256.48
Total liabilities and owners’ (or
shareholders’) equity 16,391,932,733.65 16,906,453,313.31
Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
8
Chief of the accounting division: Xu Youshan
2. Balance sheet of the Company
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Balance as at 30 Sept. 2012 Balance as at 30 Jun. 2012
Current Assets:
Monetary funds 2,089,257,509.13 2,197,167,892.05
Transactional financial assets
Notes receivable 3,711,625,122.34 4,731,536,936.35
Accounts receivable 1,748,938,342.63 1,272,793,163.17
Accounts paid in advance 153,851,883.64 115,891,757.12
Interest receivable 9,997,335.68 42,999,483.89
Dividend receivable
Other accounts receivable 653,925,152.19 590,667,690.98
Inventories 2,361,704,651.31 2,090,143,386.96
Non-current assets due within 1 year
Other current assets 859,000,000.00
Total current assets 10,729,299,996.92 11,900,200,310.52
Non-current assets:
Available-for-sale financial assets 988,923.30 6,408,065.70
Held-to-maturity investments 380,000,000.00 350,000,000.00
Long-term accounts receivable
Long-term equity investment 1,490,917,169.87 1,492,617,169.87
Investing property 237,036,387.71 241,105,035.18
Fixed assets 552,880,832.09 581,214,987.66
Construction in progress 9,504,782.26 6,056,730.30
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 24,419,121.01 25,294,452.23
R&D expense
Goodwill
Long-term deferred expenses 2,172,620.10 3,796,432.62
Deferred income tax assets 244,663,737.71 249,756,554.62
Other non-current assets
Total of non-current assets 2,942,583,574.05 2,956,249,428.18
Total assets 13,671,883,570.97 14,856,449,738.70
Current liabilities:
Short-term borrowings 2,476,329,235.14 2,198,202,318.15
Transactional financial liabilities 21,760,628.97
Notes payable 799,208,742.95 519,958,870.11
Accounts payable 2,478,599,548.02 4,033,093,915.06
Accounts received in advance 1,787,747,597.85 2,472,654,742.04
9
Employee’s compensation payable 98,424,065.20 134,487,974.49
Tax payable -23,303,070.16 43,998,499.95
Interest payable 8,812,875.12 24,313,785.67
Dividend payable 893,356.37
Other accounts payable 1,135,948,511.09 1,078,512,870.69
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 8,762,660,861.58 10,526,983,605.13
Non-current liabilities:
Long-term borrowings 1,200,000,000.00 600,000,000.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 807,501.87
Other non-current liabilities 77,529,896.12 74,177,633.26
Total non-current liabilities 1,277,529,896.12 674,985,135.13
Total liabilities 10,040,190,757.70 11,201,968,740.26
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,203,972,704.00 1,203,972,704.00
Capital reserves 1,249,141,471.46 1,252,556,095.64
Less: Treasury stock
Specific reserves
Surplus reserves 809,307,995.80 809,307,995.80
Provisions for general risks
Retained profits 369,270,642.01 388,644,203.00
Foreign exchange difference
Total owners’ (or shareholders’) equity 3,631,692,813.27 3,654,480,998.44
Total liabilities and owners’ (or
shareholders’) equity 13,671,883,570.97 14,856,449,738.70
Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
3. Consolidated income statement for the reporting period
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total operating revenues 5,258,403,188.65 4,546,305,272.92
Including: Sales income 5,258,403,188.65 4,546,305,272.92
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 5,281,231,945.70 4,606,711,929.66
10
Including: Cost of sales 4,404,457,921.76 3,871,416,388.17
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 32,423,911.27 13,285,908.23
Selling and distribution expenses 613,860,567.53 551,397,463.86
Administrative expenses 175,336,625.51 138,216,668.52
Financial expenses 50,082,695.52 32,468,491.26
Asset impairment loss 5,070,224.11 -72,990.38
Add: Gain/(loss) from change in fair
value (“-” means loss) 37,524,641.15
Gain/(loss) from investment (“-”
means loss) 15,250.30 36,978,017.20
Including: share of profits in
associates and joint ventures 36,958,008.20
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means loss) -22,813,506.75 14,096,001.61
Add: non-operating income 32,076,280.29 35,539,234.93
Less: non-operating expense 4,162,892.55 2,469,926.24
Including: loss from
non-current asset disposal 452,012.86 25,052.43
IV. Total profit (“-” means loss) 5,099,880.99 47,165,310.30
Less: Income tax expense 841,461.34 12,611,668.69
V. Net profit (“-” means loss) 4,258,419.65 34,553,641.61
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
Company 5,395,788.27 30,780,597.23
Minority shareholders’ income -1,137,368.62 3,773,044.38
VI. Earnings per share -- --
(I) Basic earnings per share 0.0045 0.0256
(II) Diluted earnings per share 0.0045 0.0256
VII. Other comprehensive incomes -623,641.69 1,724,784.99
VIII. Total comprehensive incomes 3,634,777.96 36,278,426.60
Attributable to owners of the
Company 4,772,146.58 32,505,382.22
Attributable to minority
shareholders -1,137,368.62 3,773,044.38
Where business mergers under the same control occurred in this reporting period, the net profit achieved by the merged parties before
the business mergers was RMB 0.
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Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
4. Income statement of the Company for the reporting period
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jul.-Sept. 2012 Jul.-Sept. 2011
I. Total sales 5,222,943,432.74 4,473,827,945.81
Less: cost of sales 4,588,168,319.37 4,014,952,684.77
Business taxes and surcharges 26,829,575.77 6,386,769.16
Distribution expenses 485,203,455.49 464,241,049.26
Administrative expenses 108,979,306.56 89,979,162.86
Financial costs 12,997,437.54 12,457,052.95
Impairment loss 5,145,498.16
Add: gain/(loss) from change in fair
value (“-” means loss) 37,524,641.15
Gain/(loss) from investment (“-”
means loss) 15,250.30 470,009.00
Including: income form
investment on associates and joint
ventures
II. Business profit (“-” means loss) -4,364,909.85 -76,194,123.04
Add: non-business income 23,503,631.51 27,805,456.62
Less: non-business expense 3,581,825.68 1,063,073.40
Including: loss from non-current
asset disposal 413,601.58 101,487.55
III. Total profit (“-” means loss) 15,556,895.98 -49,451,739.82
Less: income tax expense -3,175,209.98 501,164.06
IV. Net profit (“-” means loss) 18,732,105.96 -49,952,903.88
V. Earnings per share -- --
(I) Basic earnings per share 0.0155 -0.0415
(II) Diluted earnings per share 0.0155 -0.0415
VI. Other comprehensive income -42,231.60 -107,878.28
VII. Total comprehensive income 18,689,874.36 -50,060,782.16
Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
5. Consolidated income statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total operating revenues 12,297,326,326.42 11,411,409,192.68
Including: Sales income 12,297,326,326.42 11,411,409,192.68
Interest income
Premium income
Handling charge and commission
12
income
II. Total operating cost 12,383,134,355.05 11,740,424,135.14
Including: Cost of sales 10,126,964,877.40 9,708,348,434.88
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 56,904,496.56 30,449,781.39
Selling and distribution expenses 1,588,434,204.76 1,513,052,702.71
Administrative expenses 451,653,621.01 386,306,253.40
Financial expenses 159,853,332.29 103,895,773.27
Asset impairment loss -676,176.97 -1,628,810.51
Add: Gain/(loss) from change in fair
value (“-” means loss) 22,101,173.97 52,191,364.75
Gain/(loss) from investment (“-”
means loss) 9,089,423.22 36,898,964.63
Including: share of profits in
associates and joint ventures 3,873,147.41 36,878,955.63
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means loss) -54,617,431.44 -239,924,613.08
Add: non-operating income 109,324,795.38 116,772,774.77
Less: non-operating expense 6,442,574.07 5,585,513.35
Including: loss from non-current
asset disposal 2,329,857.48 1,191,160.03
IV. Total profit (“-” means loss) 48,264,789.87 -128,737,351.66
Less: Income tax expense 32,529,576.01 27,583,026.62
V. Net profit (“-” means loss) 15,735,213.86 -156,320,378.28
Including: Net profit achieved by
combined parties before the
combinations
Attributable to owners of the
Company 16,863,079.95 -164,220,344.52
Minority shareholders’ income -1,127,866.09 7,899,966.24
VI. Earnings per share -- --
(I) Basic earnings per share 0.014 -0.1364
(II) Diluted earnings per share 0.014 -0.1364
VII. Other comprehensive incomes -6,789,411.33 -8,655,342.99
VIII. Total comprehensive incomes 8,945,802.53 -164,975,721.27
Attributable to owners of the
Company 10,073,668.62 -172,875,687.51
Attributable to minority
shareholders -1,127,866.09 7,899,966.24
Where business mergers under the same control occurred from 1 Jan. 2012 to 30 Sept. 2012, the net profit achieved by the merged
13
parties before the business mergers was RMB 0.
Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
6. Income statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Total sales 11,997,097,254.41 11,258,633,593.32
Less: cost of sales 10,454,808,685.71 10,111,243,616.79
Business taxes and surcharges 41,963,767.14 18,921,524.99
Distribution expenses 1,267,013,408.42 1,219,585,826.75
Administrative expenses 286,658,907.70 283,020,026.46
Financial costs 38,069,162.97 61,967,292.82
Impairment loss -499,990.77
Add: gain/(loss) from change in fair value (“-”
means loss) 21,760,628.97 52,191,364.75
Gain/(loss) from investment (“-” means
loss) 5,216,275.81 470,009.00
Including: income form investment on associates
and joint ventures
II. Business profit (“-” means loss) -63,939,781.98 -383,443,320.74
Add: non-business income 66,664,581.13 94,853,744.65
Less: non-business expense 4,630,567.57 2,040,687.57
Including: loss from non-current asset
disposal 1,326,958.80 806,440.79
III. Total profit (“-” means loss) -1,905,768.42 -290,630,263.66
Less: income tax expense 5,428,065.53 2,562,285.05
IV. Net profit (“-” means loss) -7,333,833.95 -293,192,548.71
V. Earnings per share -- --
(I) Basic earnings per share -0.0061 -0.2435
(II) Diluted earnings per share -0.0061 -0.2435
VI. Other comprehensive income -3,414,624.18 -87,372.49
VII. Total comprehensive income -10,748,458.13 -293,279,921.20
Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
7. Consolidated cash flow statement from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of commodities and
rendering of service 12,070,485,858.84 12,269,432,059.59
Net increase of deposits from customers and
dues from banks
14
Net increase of loans from the central bank
Net increase of funds borrowed from other
financial institutions
Cash received from premium of original
insurance contracts
Net cash received from reinsurance business
Net increase of deposits of policy holders and
investment fund
Net increase of disposal of tradable financial
assets
Cash received from interest, handling charges
and commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 245,255,483.06 243,643,660.49
Other cash received relating to operating
activities 289,965,912.06 218,962,461.55
Subtotal of cash inflows from operating
activities 12,605,707,253.96 12,732,038,181.63
Cash paid for goods and services 8,357,453,516.44 10,574,893,512.56
Net increase of customer lendings and
advances
Net increase of funds deposited in the central
bank and amount due from banks
Cash for paying claims of the original
insurance contracts
Cash for paying interest, handling charges and
commissions
Cash for paying policy dividends
Cash paid to and for employees 1,075,210,389.31 929,000,929.99
Various taxes paid 1,419,065,859.40 1,064,652,862.77
Other cash payment relating to operating
activities 898,384,256.28 957,834,126.68
Subtotal of cash outflows from operating
activities 11,750,114,021.43 13,526,381,432.00
Net cash flows from operating activities 855,593,232.53 -794,343,250.37
II. Cash flows from investing activities:
Cash received from withdrawal of investments 2,657,324.08
Cash received from return on investments 7,179,366.22 20,009.00
Net cash received from disposal of fixed
assets, intangible assets and other long-term 16,680,685.02 1,875,871.38
assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to investing
activities 1,690,622,861.40
Subtotal of cash inflows from investing activities 1,717,140,236.72 1,895,880.38
Cash paid to acquire fixed assets, intangible
assets and other long-term assets 176,431,379.16 288,187,542.00
Cash paid for investment 107,787,702.88
Net increase of pledged loans
15
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing
activities 753,410,000.00
Subtotal of cash outflows from investing
activities 929,841,379.16 395,975,244.88
Net cash flows from investing activities 787,298,857.56 -394,079,364.50
III. Cash Flows from Financing Activities:
Cash received from capital contributions 4,919,598.14
Including: Cash received from minority
shareholder investments by subsidiaries 4,919,598.14
Cash received from borrowings 6,124,174,216.69 5,934,820,568.18
Cash received from issuance of bonds
Other cash received relating to financing
activities 4,402,500,399.66 3,469,708,606.00
Subtotal of cash inflows from financing
activities 10,526,674,616.35 9,409,448,772.32
Repayment of borrowings 6,942,058,631.32 4,165,518,447.77
Cash paid for interest expenses and
distribution of dividends or profit 99,955,968.33 123,080,184.76
Including: dividends or profit paid by
subsidiaries to minority shareholders 1,123,404.76
Other cash payments relating to financing
activities 3,911,940,029.41 3,645,903,881.82
Sub-total of cash outflows from financing
activities 10,953,954,629.06 7,934,502,514.35
Net cash flows from financing activities -427,280,012.71 1,474,946,257.97
IV. Effect of foreign exchange rate changes on
cash and cash equivalents -7,011,522.24 -17,875,285.24
V. Net increase in cash and cash equivalents 1,208,600,555.14 268,648,357.86
Add: Opening balance of cash and cash
equivalents 646,451,050.70 569,524,994.01
VI. Closing balance of cash and cash equivalents 1,855,051,605.84 838,173,351.87
Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
8. Cash flow statement of the Company from 1 Jan. 2012 to 30 Sept. 2012
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2012 Jan.-Sept. 2011
I. Cash flows from operating activities:
Cash received from sale of
commodities and rendering of service 9,825,577,937.03 11,382,523,548.13
Tax refunds received 132,671,322.55 113,894,196.08
Other cash received relating to
operating activities 244,783,065.75 522,369,397.91
Subtotal of cash inflows from operating
activities 10,203,032,325.33 12,018,787,142.12
Cash paid for goods and services 8,585,490,928.59 8,185,609,779.63
Cash paid to and for employees 597,400,535.91 512,258,454.40
16
Various taxes paid 1,164,212,233.95 845,802,570.12
Other cash payment relating to
operating activities 752,809,269.72 1,122,801,586.08
Subtotal of cash outflows from operating
activities 11,099,912,968.17 10,666,472,390.23
Net cash flows from operating activities -896,880,642.84 1,352,314,751.89
II. Cash flows from investing activities:
Cash received from retraction of
investments 2,657,324.08
Cash received from return on
investments 23,452,501.79 470,009.00
Net cash received from disposal of
fixed assets, intangible assets and other 15,967,868.44 1,272,351.38
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities 1,538,422,861.40
Subtotal of cash inflows from investing
activities 1,580,500,555.71 1,742,360.38
Cash paid to acquire fixed assets,
intangible assets and other long-term 74,202,384.66 132,487,235.71
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
investing activities 683,210,000.00
Subtotal of cash outflows from investing
activities 757,412,384.66 132,487,235.71
Net cash flows from investing activities 823,088,171.05 -130,744,875.33
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings 2,317,790,204.58 2,627,255,835.43
Cash received from issuance of
bonds
Other cash received relating to
financing activities 4,339,386,370.88 3,435,177,023.33
Subtotal of cash inflows from financing
activities 6,657,176,575.46 6,062,432,858.76
Repayment of borrowings 2,285,599,425.98 3,334,265,535.02
Cash paid for interest expenses and
distribution of dividends or profit 67,805,934.85 81,446,735.94
Other cash payments relating to
financing activities 3,882,966,390.79 3,547,398,654.59
Sub-total of cash outflows from
financing activities 6,236,371,751.62 6,963,110,925.55
Net cash flows from financing activities 420,804,823.84 -900,678,066.79
IV. Effect of foreign exchange rate
changes on cash and cash equivalents -9,688,466.95 -5,033,080.79
V. Net increase in cash and cash 337,323,885.10 315,858,728.98
17
equivalents
Add: Opening balance of cash and
cash equivalents 275,892,343.00 255,364,835.76
VI. Closing balance of cash and cash
equivalents 613,216,228.10 571,223,564.74
Legal representative: Hou Songrong Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
(II) Audit report
Audit opinion: The financial report of the Company for the third quarter of 2012 has not been audited by a CPAs
firm.
Chairman of the Board of Directors: Hou Songrong
The Board of Directors
Konka Group Co., Ltd.
26 Oct. 2012
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