Report for the Third Quarter of 2013 of Konka Group Co., Ltd.
Stock code: 000016, 200016 Stock abbreviation: SKJA, SKJB Announcement No.: 2013-34
Konka Group Co., Ltd.
Report for the Third Quarter of 2013
October 2013
1
Report for the Third Quarter of 2013 of Konka Group Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all directors,
supervisors and senior management staff of Konka Group Co., Ltd. (hereinafter
referred to as “the Company”) warrant that this report is factual, accurate and
complete without any false record, misleading statement or material omission. And
they shall be jointly and severally liable for that.
All directors attended the board session for reviewing this report.
Wu Siyuan, company principal, Yang Rong, chief of the accounting work, and Xu Youshan,
chief of the accounting organ (chief of accounting), hereby confirm that the financial
statements enclosed in this report are factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any discrepancy
between the two versions, the Chinese version shall prevail.
2
Report for the Third Quarter of 2013 of Konka Group Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change
of the accounting policy or correction of any accounting error?
□ Yes √ No
30 Sept. 2013 31 Dec. 2012 Increase/decrease (%)
Total assets (RMB Yuan) 16,110,873,183.28 16,562,917,198.06 -2.73%
Net assets attributable to
shareholders of the Company 4,075,255,701.97 4,043,591,538.85 0.78%
(RMB Yuan)
YoY YoY
Jul.-Sept. 2013 increase/decre Jan.-Sept. 2013 increase/decreas
ase (%) e (%)
Operating revenues (RMB
5,125,888,856.21 -2.52% 14,547,288,137.21 18.3%
Yuan)
Net profit attributable to
shareholders of the Company 1,025,980.12 -80.99% 41,573,653.74 146.54%
(RMB Yuan)
Net profit attributable to
shareholders of the Company
after extraordinary gains -12,384,397.31 -825.86% 1,519,277.88 103.82%
and losses (RMB Yuan)
Net cash flows from
operating activities (RMB -- -- 1,835,529,172.30 114.53%
Yuan)
Basic EPS (RMB Yuan/share) 0.0009 -80% 0.0345 146.43%
Diluted EPS (RMB Yuan/share) 0.0009 -80% 0.0345 146.43%
Weighted average ROE (%) 0.03% -0.10% 1.02% 0.60%
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Amount as of Jan.-Sept.
Item Note
2013
Gains/losses on the disposal of non-current assets (including the
5,312,570.16
offset part of asset impairment provisions)
Government grants recognized in the current period, except for those 30,596,934.92
3
Report for the Third Quarter of 2013 of Konka Group Co., Ltd.
acquired in the ordinary course of business or granted at certain quotas
or amounts according to the country’s unified standards
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 assets and tradable financial 21,115.80
liabilities and financial assets available for sales, except for
effective hedging related with normal businesses of the Company
Other non-operating income and expenses other than the above 15,174,574.91
Less: Income tax effects 10,715,940.00
Minority interests effects (after tax) 334,879.93
Total 40,054,375.86 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according
to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies
Offering Their Securities to the Public—Extraordinary Gains and Losses, or classifies any
extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent
gain/loss item
□ Applicable √ Inapplicable
II. Total number of shareholders at the period-end and shares held by the top ten
shareholders
Unit: share
Total number of shareholders
92,703
at the period-end
Shares held by the top ten shareholders
Nature of Shareholding Number of the Pledged or frozen shares
Name of Number of the
shareholde percentage restricted Status of Number of
shareholder shares held
r (%) shares held shares shares
State-owne Pledged 0
OCT ENTERPRISES d
19% 228,754,783 198,381,940
CO. corporatio Frozen 0
n
Foreign Pledged Unknown
HOLY TIME GROUP corporatio
n 4.92% 59,241,412 0
LIMITED Frozen Unknown
Foreign Pledged Unknown
GAOLING
corporatio 2.19% 26,400,625 0
FUND,L.P. Frozen Unknown
n
Foreign Pledged Unknown
NAM NGAI natural 0.98% 11,760,520 0
person Frozen Unknown
LI YICHAO Domestic 0.45% 5,447,381 0 Pledged Unknown
4
Report for the Third Quarter of 2013 of Konka Group Co., Ltd.
natural
Frozen Unknown
person
Domestic Pledged Unknown
XIA RUI natural 0.42% 5,006,500 0
person Frozen Unknown
Domestic Pledged Unknown
JIANGSU KAIMI
non-state-
MEMBRANE
owned 0.38% 4,532,064 0
TECHNOLOGY CO., Frozen Unknown
corporatio
LTD.
n
Domestic Pledged Unknown
CHEN ZHONGFU natural 0.37% 4,460,463 0
person Frozen Unknown
Domestic Pledged Unknown
SONG HUI natural 0.29% 3,493,576 0
person Frozen Unknown
Foreign Pledged Unknown
YHG INVESTMENT,
corporatio 0.25% 2,967,661 0
L.P. Frozen Unknown
n
Shares held by the top ten non-restricted share holders
Number of non-restricted Type of shares
Name of shareholder
shares held Type Number
Domestically listed foreign
HOLY TIME GROUP LIMITED 59,241,412 59,241,412
shares
OCT ENTERPRISES CO. 30,372,843 RMB ordinary shares 30,372,843
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 5,447,381 RMB ordinary shares 5,447,381
XIA RUI 5,006,500 RMB ordinary shares 5,006,500
JIANGSU KAIMI MEMBRANE 4,532,064 RMB ordinary shares 4,532,064
TECHNOLOGY CO., LTD.
CHEN ZHONGFU 4,460,463 RMB ordinary shares 4,460,463
SONG HUI 3,493,576 RMB ordinary shares 3,493,576
Domestically listed foreign
YHG INVESTMENT, L.P. 2,967,661 2,967,661
shares
The first majority shareholder OVERSEAS CHINESE TOWN ENTERPRISES CO. has no
Explanation on associated
related-party relationship with other shareholders and they are not
relationship or persons
acting-in-concert parties, either. Except for that, the Company does not know
acting in concert among the
whether the other shareholders are related parties and whether they are
above-mentioned shareholders
acting-in-concert parties.
Shareholders taking part in Inapplicable
5
Report for the Third Quarter of 2013 of Konka Group Co., Ltd.
margin financing and
securities lending (if any)
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
6
Section III. Significant Events
I. Major changes of main accounting statement items and financial indicators in the
reporting period, as well as reasons for the changes
1. In the first three quarters of 2013, the operating revenues increased 18.30% from
the same period of last year and the net profit attributable to owners of the Company
increased 146.54% on the same basis.
In the first three quarters of 2013, color TV technological reform accelerated. In
its color TV business, guided by the overall strategy of “building the brand,
enlarging the size, adjusting the structure and taping the potential”, the Company
seized the great opportunities of the development of intelligent color TVs and super
HD large-screened TVs, and maintained its leading position in product and technology
through integration of the up-stream and down-stream resources of the industrial
chain. Its sales growth was higher than the average in the industry, with an improved
sales structure and quality. When compared with the same period of last year, the
operating efficiency increased steadily with a higher profitability.
2. Major changes of other financial indicators, as well as reasons for the changes
Unit: RMB Ten thousand
Closing Opening Increase/decr Increase/decr
Item Main reason for the change
amount amount ease ease (%)
Interest Term and pledged deposits
209.77 717.20 -507.43 -70.75%
receivable decreased.
The receivable government
Other
81,395.95 31,659.07 49,736.88 157.10% subsidies for energy saving
receivables
increased.
Taxes and fares The overpaid input tax
-4,425.70 -23,108.78 18,683.08 80.85%
payable decreased.
Long-term The entrustment loan from OCT
500.00 40,000.00 -39,500.00 -98.75%
borrowings Enterprises Co. was repaid.
Current Same period of Increase/decr Increase/decr
Item Main reason for the change
period last year ease ease (%)
Investment gains on the changes
Investment
-1,065.21 908.94 -1,974.15 -217.19% of the owners’ equities of
gains
associates
The gains on the
Non-operating
17,654.43 10,932.48 6,721.95 61.49% software-related tax rebates
incomes
increased.
7
Non-operating Some fixed assets were
1,086.17 644.26 441.91 68.59%
expense disposed.
Income tax Deferred income tax assets were
11,208.76 3,252.96 7,955.80 244.57%
expenses reversed.
II. Progress and influence of significant events, as well as the analysis and
explanation on solutions
1. Progress of urban renewal projects of the Company headquarters
On 14 Oct. 2011, the 2nd Administration Bureau directly under the Urban Planning, Land
and Resources Commission of Shenzhen Municipality unveiled the Circular on Plant
Renewal Unit Planning (Draft) of the Headquarters of Konka Group in Nanshan District,
Shenzhen on Shenzhen Economic Daily, which meant that the Company’s Plant Renewal
Unit Planning (Draft) of the Headquarters passed the examination of the Urban Planning,
Land and Resources Commission of Shenzhen Municipality through a technological
conference. In 2012, Land and Resources Commission of Shenzhen Municipality issued
Reply to the examination and approval of Plant Renewal Unit Planning (Draft) of the
Headquarters of Konka Group in Nanshan District. Plant Renewal Unit Planning (Draft)
of the Headquarters of Konka Group in Nanshan District has been examined and approved
by the Architecture and Environmental Art Commission of City Planning Commission of
Shenzhen. Land and Resources Commission of Shenzhen Municipality examined the Project
of Plant Renewal of the Headquarters of Konka Group, issued Construction Land Planning
Permit (License No. ZG-2013-0006) and approved the Company headquarters’ conduction
of Urban Plant Renewal construction land Planning. The 2nd Administration Bureau
directly under the Urban Planning, Land and Resources Commission of Shenzhen
Municipality issued Shenzhen state-owned land use right transfer income payment
notice in 2013, the Company totally paid RMB 1,492,931,087 Yuan for the aforesaid
project.
The Company received in Aug. 2013 the Comment Letter about Konka as Main Implementer
of Plant Renewal of the Headquarters of Konka Group Project from the restructuring
office of Chengzhong Village in Nanshan District of Shenzhen, the main content of
the Comment Letter was as follows:
The Restructuring Office of Chengzhong Village in Nanshan District of Shenzhen
received the comment letter about opposing Konka as main implementer of Plant Renewal
of the Headquarters of Konka Group Project from OCT Group Co., Ltd. The OCT Group
Co., Ltd was against the Konka as the only main implementer of Plant Renewal of the
Headquarters of Konka Group Project and recognized that there are historical and
residual property rights disputes in the ground (T309-0056, the land area of 37251.8
8
square meters) of the Plant Renewal Unit of the Headquarters of Konka Group, and the
related procedures should be suspended and dealt with after the OCT Group Co., Ltd
and Konka Group negotiating the solutions.
2. Index to announcements on significant events
Index to the relevant announcement disclosed on
Overview of the significant event Date of disclosure
the website
Announcement on the Company http://www.cninfo.com.cn/finalpage/2013-07-02
2 Jul. 2013
Obtaining the Land Use Right /62754724.PDF
Announcement on the Predictions of http://www.cninfo.com.cn/finalpage/2013-07-13
13 Jul. 2013
the Operating Results for the First /62829646.PDF
Half of 2013 on Progress of the
Announcement http://www.cninfo.com.cn/finalpage/2013-08-06
6 Aug. 2013
Application of the Urban Renewal /62909699.PDF
Plan Project
Announcement on Arrival of the http://www.cninfo.com.cn/finalpage/2013-08-17
17 Aug. 2013
Comment Letter about Konka as Main /62952576.PDF
Implementer ofonPlant Renewalof ofthethe
Announcement Progress http://www.cninfo.com.cn/finalpage/2013-08-30
30 Aug. 2013
Equity Transfer of a Controlled /63018399.PDF
Subsidiaries
Abstract of the Semi-annual Report http://www.cninfo.com.cn/finalpage/2013-08-31
31 Aug. 2013
for 2013 /63028846.PDF
http://www.cninfo.com.cn/finalpage/2013-08-31
Semi-annual Report for 2013 31 Aug. 2013
/63028855.PDF
Announcement on Arrival of Tax http://www.cninfo.com.cn/finalpage/2013-09-24
24 Sept. 2013
Rebates /63103719.PDF
Announcement on Resolutions Made at http://www.cninfo.com.cn/finalpage/2013-09-30
th th
30 Sept. 2013
the 47 Session of the 7 Board of /63123960.PDF
Directors
Announcement on External http://www.cninfo.com.cn/finalpage/2013-09-30
30 Sept. 2013
Guarantees /63123958.PDF
st
Notice on Convening the 1 Special http://www.cninfo.com.cn/finalpage/2013-09-30
30 Sept. 2013
Shareholders’ General Meeting for /63123957.PDF
2013
Announcement on Resignation of the http://www.cninfo.com.cn/finalpage/2013-09-30
30 Sept. 2013
Board Chairman /63123956.PDF
III. Commitments made by the Company or shareholders holding over 5% of the Company’
s shares in the reporting period or such commitments carried down into the reporting
period
Time of
Commitment Period of
Commitment Contents making Fulfillment
maker commitment
commitment
9
Commitments made in a share reform Naught
Commitments made in an acquisition Naught
Commitments made in asset Naught
reorganization
Commitments made in the first Naught
publiccommitmentsormade to minority
Other offering refinancing. Naught
shareholders
Executed in time or not? Inapplicable
Detailed reason for failing to
execute and the plan for the next Inapplicable
step (If any)
IV. Predict the 2013 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. Securities investment
Initia Shareh Number Shareh Gain/l
Number
l olding of olding Closin oss
Variet Code of
Name of invest percen shares percen g book for Accoun Source
y of of shares
securi ment tage held tage value report ting of
securi securi held at
ties cost at at at (RMB period title stock
ties ties period
(RMB period period period Yuan) (RMB
-begin
Yuan) -begin -end -end Yuan)
Total 0.00 0 -- 0 -- 0.00 0.00 -- --
Disclosure date of the
Inapplicable
board announcement on
approval of the
Disclosure date of the
general meeting
announcement on approval Inapplicable
of the securities
investment (if any)
Shareholdings in other listed companies
√Applicable □Inapplicable
At the end of the reporting period, the Company owned the common stocks of Vanke B shares, with
the initial investment cost of RMB 2,311,748.07, and the fair value of the beginning of 2013
was of RMB 1,187,177.20, as well as the fair value at the end of the third quarter of 2013 was
of RMB 1,071,040.3.
10
VI. Investments in derivatives
Unit: RMB Ten thousand Yuan
Propor
tion
of the
closin
g
Relate Impair Actual
Type of Initia Openin Closin invest
d-part ment gain/l
deriva l g g ment
Operat Relati y Start Ending provis oss in
tive invest invest invest amount
or on transa date date ion report
invest ment ment ment in the
ction (if ing
ment amount amount amount Compan
or not any) period
y’s
closin
g net
assets
(%)
Naught Naught Naught Naught Naught Naught Naught Naught Naught Naught Naught Naught
Total 0 -- -- 0 0 0 0% 0
Capital source for derivative
Naught
investment
Cases involving lawsuit (if
Inapplicable
applicable)
Disclosure date of the board Inapplicable
Disclosure date of the general Inapplicable
Analysis on risks and control
measures of derivative products
held in the reporting period
(including but not limited to Inapplicable
market risk, liquidity risk, credit
risk, operation risk, law risk,
etc.)
Changes of market prices or fair
values in the reporting period of
the invested derivatives. And the
analysis on the fair value of the
Inapplicable
derivatives should include the
specific use methods and the
relevant assumptions and
parameters.
Whether significant changes
occurred to the Company’s Inapplicable
accounting policy and specific
11
accounting principles of
derivatives in the reporting period
compared to the previous reporting
period
Specific opinion from independent
directors on the Company’s
Inapplicable
derivatives investment and risk
control
VII. Researches, visits and interviews received in the reporting period
Time of Place of Way of Main discussion and materials
Visitor type Visitor
reception reception reception provided by the Company
Shenzhen Stock The operating situation of 2013, the
Exchange progress of the renovation of land of
Interactive the headquarter plants area, the
1 Jul. 2013 Others Others Investor
Platform for progress of Zhouzhuang Project and
invest the selling situation of color TVs
relations and so on.
12
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,941,049,423.53 1,728,946,511.11
Settlement reserves
Intra-group lendings
Transactional financial assets
Notes receivable 3,848,666,688.76 5,033,056,004.97
Accounts receivable 2,429,216,110.04 1,975,605,771.07
Accounts paid in advance 214,978,994.72 183,008,022.27
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 2,097,659.09 7,171,998.73
Dividend receivable
Other accounts receivable 813,959,496.76 316,590,715.96
Financial assets purchased under
agreements to resell
Inventories 3,641,905,643.00 4,059,339,049.25
Non-current assets due within 1 year
Other current assets
Total current assets 12,891,874,015.90 13,303,718,073.36
Non-current assets:
Loans by mandate and advances granted
Available-for-sale financial assets 1,071,040.30 1,187,177.20
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 443,251,781.53 472,423,533.19
13
Investing property 239,388,486.78 235,680,171.89
Fixed assets 1,914,540,973.17 1,887,836,271.02
Construction in progress 70,060,475.01 50,682,893.85
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 308,572,923.23 290,280,443.01
R&D expense
Goodwill 3,943,671.53 3,943,671.53
Long-term deferred expenses 11,159,573.27 6,261,286.45
Deferred income tax assets 227,010,242.56 310,903,676.56
Other non-current assets
Total of non-current assets 3,218,999,167.38 3,259,199,124.70
Total assets 16,110,873,183.28 16,562,917,198.06
Current liabilities:
Short-term borrowings 5,669,657,773.06 5,456,351,486.48
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Transactional financial liabilities
Notes payable 710,900,965.89 846,746,137.62
Accounts payable 3,109,702,777.92 2,735,993,787.52
Accounts received in advance 414,450,528.76 441,836,467.09
Financial assets sold for repurchase
Handling charges and commissions
payable
Employee’s compensation payable 239,881,934.06 305,003,416.73
Tax payable -44,257,045.71 -231,087,836.60
Interest payable 31,975,950.95 27,651,352.67
Dividend payable
Other accounts payable 1,516,496,284.38 1,364,756,260.46
Reinsurance premiums payable
Insurance contract reserves
14
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Non-current liabilities due within 1
10,000,000.00 810,000,000.00
year
Other current liabilities
Total current liabilities 11,658,809,169.31 11,757,251,071.97
Non-current liabilities:
Long-term borrowings 5,000,000.00 400,000,000.00
Bonds payable
Long-term payables 30,000,000.00 30,000,000.00
Specific payables
Estimated liabilities 2,511,814.54 2,511,814.54
Deferred income tax liabilities 563,067.21 563,067.21
Other non-current liabilities 136,736,620.85 125,743,462.22
Total non-current liabilities 174,811,502.60 558,818,343.97
Total liabilities 11,833,620,671.91 12,316,069,415.94
Owners ’ equity (or shareholders ’
equity)
Paid-up capital (or share capital) 1,203,972,704.00 1,203,972,704.00
Capital reserves 1,272,333,225.79 1,272,420,328.46
Less: Treasury stock
Specific reserves
Surplus reserves 827,291,207.52 827,291,207.52
Provisions for general risks
Retained profits 755,019,630.80 725,485,704.10
Foreign exchange difference 16,638,933.86 14,421,594.77
Total equity attributable to owners of
4,075,255,701.97 4,043,591,538.85
the Company
Minority interests 201,996,809.40 203,256,243.27
Total owners’(or shareholders’ equity 4,277,252,511.37 4,246,847,782.12
Total liabilities and owners ’ (or
16,110,873,183.28 16,562,917,198.06
shareholders’) equity
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Yang Rong
15
Chief of the accounting division: Xu Youshan
2. Balance sheet of the Company
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,018,400,443.26 1,232,222,002.19
Transactional financial assets
Notes receivable 3,621,960,142.34 4,745,072,740.14
Accounts receivable 1,526,137,833.86 1,236,932,980.35
Accounts paid in advance 856,330,257.23 194,043,254.39
Interest receivable 10,712,555.06 7,894,632.07
Dividend receivable
Other accounts receivable 1,374,469,445.02 743,098,527.06
Inventories 2,308,880,670.29 2,840,661,422.34
Non-current assets due within 1 year
Other current assets
Total current assets 10,716,891,347.06 10,999,925,558.54
Non-current assets:
Available-for-sale financial assets 1,071,040.30 1,187,177.20
Held-to-maturity investments 505,000,000.00 395,000,000.00
Long-term accounts receivable
Long-term equity investment 1,693,717,169.87 1,693,717,169.87
Investing property 239,388,486.78 235,680,171.89
Fixed assets 602,476,156.60 555,870,405.39
Construction in progress 8,160,940.19 5,584,347.15
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 26,082,326.48 24,518,958.53
R&D expense
Goodwill
16
Long-term deferred expenses 4,084,782.13 1,811,365.14
Deferred income tax assets 198,531,127.54 223,333,764.57
Other non-current assets
Total of non-current assets 3,278,512,029.89 3,136,703,359.74
Total assets 13,995,403,376.95 14,136,628,918.28
Current liabilities:
Short-term borrowings 1,762,572,318.05 2,451,684,485.86
Transactional financial liabilities
Notes payable 575,473,327.66 597,563,690.81
Accounts payable 5,172,980,895.46 3,664,516,644.48
Accounts received in advance 882,833,640.22 1,197,059,751.70
Employee’s compensation payable 127,584,767.69 164,101,581.67
Tax payable -39,918,105.92 -245,006,993.34
Interest payable 24,191,093.67 19,388,598.90
Dividend payable
Other accounts payable 1,467,889,982.13 1,189,885,260.79
Non-current liabilities due within 1
800,000,000.00
year
Other current liabilities
Total current liabilities 9,973,607,918.96 9,839,193,020.87
Non-current liabilities:
Long-term borrowings 400,000,000.00
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 76,573,653.19 78,428,442.55
Total non-current liabilities 76,573,653.19 478,428,442.55
Total liabilities 10,050,181,572.15 10,317,621,463.42
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,203,972,704.00 1,203,972,704.00
Capital reserves 1,249,203,059.21 1,249,290,161.88
Less: Treasury stock
17
Specific reserves
Surplus reserves 827,291,207.52 827,291,207.52
Provisions for general risks
Retained profits 664,754,834.07 538,453,381.46
Foreign exchange difference
Total owners’ (or shareholders’) equity 3,945,221,804.80 3,819,007,454.86
Total liabilities and owners ’ (or
13,995,403,376.95 14,136,628,918.28
shareholders’) equity
Legal representative: Wu Siyuan 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. 2013 Jul.-Sept. 2012
I. Total operating revenues 5,125,888,856.21 5,258,403,188.65
Including: Sales income 5,125,888,856.21 5,258,403,188.65
II. Total operating cost 5,155,561,503.95 5,281,231,945.70
Including: Cost of sales 4,279,709,450.47 4,404,457,921.76
Taxes and associate charges 15,552,238.27 32,423,911.27
Selling and distribution expenses 672,680,950.49 613,860,567.53
Administrative expenses 167,099,846.16 175,336,625.51
Financial expenses -9,041,427.05 50,082,695.52
Asset impairment loss 29,560,445.61 5,070,224.11
Gain/(loss) from investment (“-”means
-2,475,483.67 15,250.30
loss)
Including: share of profits in associates
-2,475,483.67
and joint ventures
III. Business profit (“-” means loss) -32,148,131.41 -22,813,506.75
Add: non-operating income 130,589,476.80 32,076,280.29
Less: non-operating expense 5,735,856.70 4,162,892.55
Including: loss from non-current asset
3,011,920.69 452,012.86
disposal
IV. Total profit (“-” means loss) 92,705,488.69 5,099,880.99
Less: Income tax expense 89,039,674.82 841,461.34
V. Net profit (“-” means loss) 3,665,813.87 4,258,419.65
18
Attributable to owners of the Company 1,025,980.12 5,395,788.27
Minority shareholders’ income 2,639,833.75 -1,137,368.62
VI. Earnings per share -- --
(I) Basic earnings per share 0.0009 0.0045
(II) Diluted earnings per share 0.0009 0.0045
Ⅶ. Other comprehensive incomes -749,852.99 -623,641.69
Ⅷ. Total comprehensive incomes 2,915,960.88 3,634,777.96
Attributable to owners of the Company 276,127.13 4,772,146.58
Attributable to minority shareholders 2,639,833.75 -1,137,368.62
Legal representative: Wu Siyuan 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. 2013 Jul.-Sept. 2012
I. Total sales 5,400,743,339.80 5,222,943,432.74
Less: cost of sales 4,784,525,416.90 4,588,168,319.37
Business taxes and surcharges 8,959,658.28 26,829,575.77
Distribution expenses 513,502,645.20 485,203,455.49
Administrative expenses 103,247,670.81 108,979,306.56
Financial costs 6,252,701.05 12,997,437.54
Impairment loss 30,219,405.32 5,145,498.16
Gain/(loss) from investment (“-”
15,250.30
means loss)
II. Business profit (“-” means loss) -45,964,157.76 -4,364,909.85
Add: non-business income 118,023,308.68 23,503,631.51
Less: non-business expense 4,579,720.14 3,581,825.68
Including: loss from non-current asset
2,409,461.96 413,601.58
disposal
III. Total profit (“-” means loss) 67,479,430.78 15,556,895.98
Less: income tax expense 18,220,744.94 -3,175,209.98
IV. Net profit (“-” means loss) 49,258,685.84 18,732,105.96
V. Earnings per share -- --
(I) Basic earnings per share 0.0409 0.0156
19
(II) Diluted earnings per share 0.0409 0.0156
VI. Other comprehensive income -63,347.40 -42,231.60
VII. Total comprehensive income 49,195,338.44 18,689,874.36
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
5. Consolidated income statement for Jan.-Sept. 2013
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Total operating revenues 14,547,288,137.21 12,297,326,326.42
Including: Sales income 14,547,288,137.21 12,297,326,326.42
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 14,549,916,838.04 12,383,134,355.05
Including: Cost of sales 12,115,486,956.16 10,126,964,877.40
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 48,586,402.77 56,904,496.56
Selling and distribution expenses 1,884,084,040.29 1,588,434,204.76
Administrative expenses 480,035,954.68 451,653,621.01
Financial expenses -30,748,765.34 159,853,332.29
Asset impairment loss 52,472,249.48 -676,176.97
Add: Gain/(loss) from change in fair value
22,101,173.97
(“-” means loss)
Gain/(loss) from investment ( “ - ”
-10,652,063.79 9,089,423.22
means loss)
20
Including: share of profits in associates
-10,673,179.59 3,873,147.41
and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) -13,280,764.62 -54,617,431.44
Add: non-operating income 176,544,290.82 109,324,795.38
Less: non-operating expense 10,861,709.33 6,442,574.07
Including: loss from non-current asset
6,880,721.42 2,329,857.48
disposal
IV. Total profit (“-” means loss) 152,401,816.87 48,264,789.87
Less: Income tax expense 112,087,597.00 32,529,576.01
V. Net profit (“-” means loss) 40,314,219.87 15,735,213.86
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the Company 41,573,653.74 16,863,079.95
Minority shareholders’ income -1,259,433.87 -1,127,866.09
VI. Earnings per share -- --
(I) Basic earnings per share 0.0345 0.014
(II) Diluted earnings per share 0.0345 0.014
Ⅶ. Other comprehensive incomes 2,130,236.42 -6,789,411.33
Ⅷ. Total comprehensive incomes 42,444,456.29 8,945,802.53
Attributable to owners of the Company 43,703,890.16 10,073,668.62
Attributable to minority shareholders -1,259,433.87 -1,127,866.09
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
6. Income statement of the Company for Jan.-Sept. 2013
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Total sales 15,102,962,063.94 11,997,097,254.41
Less: cost of sales 13,284,240,803.60 10,454,808,685.71
Business taxes and surcharges 30,441,922.24 41,963,767.14
Distribution expenses 1,457,237,045.98 1,267,013,408.42
Administrative expenses 242,813,780.89 286,658,907.70
Financial costs -173,124.91 38,069,162.97
21
Impairment loss 45,315,916.92 -499,990.77
Add: gain/(loss) from change in fair value
21,760,628.97
(“-” means loss)
Gain/(loss) from investment (“-” means
21,115.80 5,216,275.81
loss)
Including: income form investment on
associates and joint ventures
II. Business profit (“-” means loss) 43,106,835.02 -63,939,781.98
Add: non-business income 146,897,833.75 66,664,581.13
Less: non-business expense 5,947,066.99 4,630,567.57
Including: loss from non-current asset
3,118,103.04 1,326,958.80
disposal
III. Total profit (“-” means loss) 184,057,601.78 -1,905,768.42
Less: income tax expense 45,716,422.13 5,428,065.53
IV. Net profit (“-” means loss) 138,341,179.65 -7,333,833.95
V. Earnings per share -- --
(I) Basic earnings per share 0.1149 -0.0061
(II) Diluted earnings per share 0.1149 -0.0061
VI. Other comprehensive income -87,102.67 -3,414,624.18
VII. Total comprehensive income 138,254,076.98 -10,748,458.13
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
7. Consolidated cash flow statement for Jan.-Sept. 2013
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and
13,942,683,102.29 12,070,485,858.84
rendering of service
Net increase of deposits from customers and
dues from banks
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
22
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 330,667,945.66 245,255,483.06
Other cash received relating to operating
271,528,552.11 289,965,912.06
activities
Subtotal of cash inflows from operating
14,544,879,600.06 12,605,707,253.96
activities
Cash paid for goods and services 8,819,908,840.86 8,357,453,516.44
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 1,255,507,234.76 1,075,210,389.31
Various taxes paid 1,514,126,665.13 1,419,065,859.40
Other cash payment relating to operating
1,119,807,687.01 898,384,256.28
activities
Subtotal of cash outflows from operating
12,709,350,427.76 11,750,114,021.43
activities
Net cash flows from operating activities 1,835,529,172.30 855,593,232.53
II. Cash flows from investing activities:
Cash received from withdrawal of investments 15,137,680.00 2,657,324.08
Cash received from return on investments 3,045,900.17 7,179,366.22
Net cash received from disposal of fixed
assets, intangible assets and other long-term 29,604,684.18 16,680,685.02
assets
Net cash received from disposal of subsidiaries 20,818,708.75
23
or other business units
Other cash received relating to investing
1,690,622,861.40
activities
Subtotal of cash inflows from investing
68,606,973.10 1,717,140,236.72
activities
Cash paid to acquire fixed assets, intangible
221,418,555.64 176,431,379.16
assets and other long-term assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing
753,410,000.00
activities
Subtotal of cash outflows from investing
221,418,555.64 929,841,379.16
activities
Net cash flows from investing activities -152,811,582.54 787,298,857.56
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Including: Cash received from minority
shareholder investments by subsidiaries
Cash received from borrowings 3,748,968,680.44 6,124,174,216.69
Cash received from issuance of bonds
Other cash received relating to financing
1,137,986,353.39 4,402,500,399.66
activities
Subtotal of cash inflows from financing
4,886,955,033.83 10,526,674,616.35
activities
Repayment of borrowings 5,127,267,806.62 6,942,058,631.32
Cash paid for interest expenses and
100,322,810.55 99,955,968.33
distribution of dividends or profit
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to financing
511,026,566.30 3,911,940,029.41
activities
Sub-total of cash outflows from financing
5,738,617,183.47 10,953,954,629.06
activities
Net cash flows from financing activities -851,662,149.64 -427,280,012.71
IV. Effect of foreign exchange rate changes on 18,504,467.98 -7,011,522.24
24
cash and cash equivalents
V. Net increase in cash and cash equivalents 849,559,908.10 1,208,600,555.14
Add: Opening balance of cash and cash
824,043,169.37 646,451,050.70
equivalents
VI. Closing balance of cash and cash equivalents 1,673,603,077.47 1,855,051,605.84
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
8. Cash flow statement of the Company for Jan.-Sept. 2013
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2013 Jan.-Sept. 2012
I. Cash flows from operating activities:
Cash received from sale of commodities and
10,873,897,439.73 9,825,577,937.03
rendering of service
Tax refunds received 247,594,244.97 132,671,322.55
Other cash received relating to operating
189,761,400.68 244,783,065.75
activities
Subtotal of cash inflows from operating
11,311,253,085.38 10,203,032,325.33
activities
Cash paid for goods and services 5,996,294,072.12 8,585,490,928.59
Cash paid to and for employees 698,252,961.51 597,400,535.91
Various taxes paid 1,171,595,372.06 1,164,212,233.95
Other cash payment relating to operating
959,520,488.69 752,809,269.72
activities
Subtotal of cash outflows from operating
8,825,662,894.38 11,099,912,968.17
activities
Net cash flows from operating activities 2,485,590,191.00 -896,880,642.84
II. Cash flows from investing activities:
Cash received from retraction of investments 20,818,708.75 2,657,324.08
Cash received from return on investments 13,570,488.72 23,452,501.79
Net cash received from disposal of fixed
assets, intangible assets and other long-term 22,527,686.18 15,967,868.44
assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to investing 30,000,000.00 1,538,422,861.40
25
activities
Subtotal of cash inflows from investing
86,916,883.65 1,580,500,555.71
activities
Cash paid to acquire fixed assets, intangible
111,745,964.46 74,202,384.66
assets and other long-term assets
Cash paid for investment
Net cash paid to acquire subsidiaries and
other business units
Other cash payments relating to investing
140,000,000.00 683,210,000.00
activities
Subtotal of cash outflows from investing
251,745,964.46 757,412,384.66
activities
Net cash flows from investing activities -164,829,080.81 823,088,171.05
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings 142,130,800.00 2,317,790,204.58
Cash received from issuance of bonds
Other cash received relating to financing
1,137,986,353.39 4,339,386,370.88
activities
Subtotal of cash inflows from financing
1,280,117,153.39 6,657,176,575.46
activities
Repayment of borrowings 2,610,797,519.55 2,285,599,425.98
Cash paid for interest expenses and
70,127,386.19 67,805,934.85
distribution of dividends or profit
Other cash payments relating to financing
509,344,082.83 3,882,966,390.79
activities
Sub-total of cash outflows from financing
3,190,268,988.57 6,236,371,751.62
activities
Net cash flows from financing activities -1,910,151,835.18 420,804,823.84
IV. Effect of foreign exchange rate changes on
5,922,919.95 -9,688,466.95
cash and cash equivalents
V. Net increase in cash and cash equivalents 416,532,194.96 337,323,885.10
Add: Opening balance of cash and cash
365,891,615.75 275,892,343.00
equivalents
VI. Closing balance of cash and cash
782,423,810.71 613,216,228.10
equivalents
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Yang Rong
26
Chief of the accounting division: Xu Youshan
II. Audit report
Is this report audited?
□ Yes √ No
This report is not audited.
Chairman of the Board of Directors: Wu Siyuan
Konka Group Co., Ltd.
Board of Directors
30 Oct. 2013
27
