Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
KONKA GROUP CO., LTD.
Report for the Third Quarter of 2014
2014-47
October 2014
1
Report for the Third Quarter of 2014 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.
Except for the following Directors, the others attended the board session for
reviewing this report.
Name of Directors not Position of Directors not Reason of not attending
attended the board attended the board the boars session in Name of mandatory
session in person session in person person
Wang Xiaowen Director On a business trip Wu Siyuan
Wu Siyuan, company principal, Huang Zhiqiang, chief of the accounting work, and Xu
Youshan, chief of the accounting organ (chief of accounting), hereby confirm that
the Financial Report enclosed in this report is 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.
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Report for the Third Quarter of 2014 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
Increase/decrea
31 Dec. 2013
30 Sept. 2014 se (%)
before adjustment after adjustment after adjustment
Total assets (RMB Yuan) 16,060,816,760.49 15,743,284,335.49 15,743,284,335.49 2.02%
Net assets attributable to
shareholders of the Company 4,074,965,048.90 4,080,458,151.63 4,080,458,151.63 -0.13%
(RMB Yuan)
YoY YoY
Jul.-Sept. 2014 increase/decrease Jan.-Sept. 2014 increase/decrea
(%) se (%)
Operating revenues (RMB
5,069,587,917.51 -1.10% 13,467,888,459.14 -7.42%
Yuan)
Net profit attributable to
shareholders of the Company 2,219,144.43 116.30% 47,579,255.05 14.45%
(RMB Yuan)
Net profit attributable to
shareholders of the Company
-109,015,082.18 -780.26% -280,948,661.71 -18,592.25%
after extraordinary gains
and losses (RMB Yuan)
Net cash flows from operating
-- -- 954,710,313.21 -47.99%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.0018 100.00% 0.0395 14.49%
Diluted EPS (RMB Yuan/share) 0.0018 100.00% 0.0395 14.49%
Weighted average ROE (%) 0.05% 0.02% 1.16% 0.14%
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Amount as of Jan.-Sept.
Item Note
2014
Gains/losses on the disposal of non-current assets (including the
404,647,684.15
offset part of asset impairment provisions)
Government grants recognized in the current period, except for
25,630,924.28
those acquired in the ordinary course of business or granted at
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Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
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
48,104.52
financial liabilities and financial assets available for sales,
except for effective hedging related with normal businesses of the
Company
Non-operating incomes and expenses other than the above 2,299,991.71
Less: Income tax effects 104,573,675.54
Minority interests effects (after tax) -474,887.64
Total 328,527,916.76 --
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
There was no such situation of the Company during the reporting period.
II. Total number of shareholders and shareholdings of the top ten shareholders at
the period-end
1. Total number of common shareholders and shareholdings of the top ten common
shareholders at the period-end
Unit: share
Total number of common
77,479
shareholders at the period-end
Shareholdings of the top ten common shareholders
Sharehold Pledged or frozen shares
Number of
Name of Nature of ing Number of the
restricted Status of Number of
shareholder shareholder percentag shares held
shares held shares shares
e (%)
Pledged 0
OCT ENTERPRISES State-owned
21.75% 261,873,466 198,381,940
CO. corporation Frozen 0
HOLY TIME GROUP Foreign Pledged 0
3.87% 46,533,615 0
LIMITED corporation Frozen 0
Foreign Pledged 0
GAOLING FUND,L.P. 2.19% 26,400,625 0
corporation Frozen 0
China Resources Pledged 0
Domestic
SCP Trust Co., Ltd.
non-state-o
－Extraordinary 1.58% 19,060,288 0
wned Frozen 0
No. 18 Capital
corporation
Trust
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Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Domestic Pledged 0
Sun Zhenxiang 1.17% 14,093,988 0
individual Frozen 0
Guoyuan Securities Pledged 0
Foreign
Broker (HK) Co., 1.13% 13,650,000 0
corporation Frozen 0
Ltd.
Warburg Trust Co., Domestic Pledged 0
Ltd.－Shijie Haoyu non-state
1.00% 12,097,900 0
No. 11 Assembled owned Frozen 0
Funds Trust corporation
Foreign Pledged 0
NAM NGAI 0.97% 11,690,520 0
individual Frozen 0
GUOTAI JUNAN Pledged 0
Foreign
SECURITIES(HONGKO 0.72% 8,695,062 0
corporation Frozen 0
NG) LIMITED
Domestic Pledged 5,447,381
Li Yichao 0.48% 5,733,081 0
individual Frozen 0
Shareholdings of the top ten non-restricted common shareholders
Number of non-restricted Type of shares
Name of shareholder common shares held at the
Type Number
period-end
OCT ENTERPRISES CO. 63,491,526 RMB ordinary share 63,491,526
Domestically listed
HOLY TIME GROUP LIMITED 46,533,615 46,533,615
foreign share
Domestically listed
GAOLING FUND,L.P. 26,400,625 26,400,625
foreign share
China Resources SCP Trust Co., Ltd.
19,060,288 RMB ordinary share 19,060,288
－Extraordinary No. 18 Capital Trust
Sun Zhenxiang 14,093,988 RMB ordinary share 14,093,988
Guoyuan Securities Broker (HK) Domestically listed
13,650,000 13,650,000
Co., Ltd. foreign share
Warburg Trust Co., Ltd.－Shijie
12,097,900 RMB ordinary share 12,097,900
Haoyu No. 11 Assembled Funds Trust
Domestically listed
NAM NGAI 11,690,520 11,690,520
foreign share
GUOTAI JUNAN SECURITIES(HONGKONG) Domestically listed
8,695,062 8,695,062
LIMITED foreign share
Li Yichao 5,733,081 RMB ordinary share 5,733,081
Explanation on associated The first majority shareholder OVERSEAS CHINESE TOWN ENTERPRISES CO.
relationship or/and persons acting has no related-party relationship with other shareholders and they are
in concert among the above-mentioned not acting-in-concert parties, either. Except for that, the Company
shareholders: does not know whether the other shareholders are related parties and
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Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
whether they are acting-in-concert parties.
Explanation on the Top 10
Sun Zhenxiang holds 14,093,988 A-shares through a client credit trading
shareholders participating in the
guarantee securities account of GF Securities Co., Ltd.
margin trading business (if any)
Did any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company carry out any agreed buy-back in the reporting period?
□ Yes √ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred
share holders at the period-end
□ Applicable √ Inapplicable
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Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
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
√ Applicable □ Inapplicable
(I) In the reporting period, our internet oriented strategy produced initial results,
with the product structure improved and the sales proportion of intelligent TVs
increased to some extent. However, affected by the drop in the domestic sales volume
and amount of color TVs, the domestic sales income of our color TVs registered a
certain decrease, leading to a certain decrease in the main business profit.
(II) In the reporting period, we focused on enhancing the internet oriented strategy,
with details as follows:
1. We unveiled the E-strategy to build an intelligent TV-Internet operation platform.
With high responsiveness and being always one among the first to notice the
development trends in the industry, we put forward to build the first intelligent
TV-Internet operation platform in China. We not only could deepen the intelligent
TV division to include content production and distribution platforms, but also were
likely to build the largest precision marketing platform of it to achieve maximum
value. Under this strategic goal, we put forward the strategic slogan of
“E-dominance”and unveiled the Group’ E-strategy for the first time. The E-strategy
consists of two cores—E-end and E-platform, the “1+1 Strategy” for short. “E-end”
refers to the extremely easy-to-use TV intelligent end, the household internet
control center. “E-platform” refers to the open and easily enjoyable intelligent
TV Internet operation. For Konka, E-end is the technical support and hardware basis
for E-platform; and E-platform is E-end in the aggregate, platform and internet forms.
E-platform is the future of the Company, and the most important product in the future.
Konka E-platform is a fully open platform for content and application suppliers in
the vertical direction and for counterparts in the horizontal direction. In the
vertical direction, E-platform is a platform of information renewal. Through
information exchange among users on E-platform, we can analyze and integrate data
and renew information to help explore new production functions, application contents
and business modes, which helps form an interest community of the up-and-down-stream
industries. In the horizontal direction, E-platform helps us study the big picture
of the TV industry and promotes the formulation of exchange standards in the industry.
In this way, it will grow into a more convenient, faster and stronger operation
platform, as well as the hub with the richest contents and applications and a highland
for added value.
In the reporting period, our internet oriented consciousness deepened. We initiated
a series of activities and explorations, our products began to show the internet
oriented trend and we became more internet oriented in the specific work.
2. The Company proactively searched for opportunities to strengthen foreign
corporation such as the Internet and application content.
(1) The Company achieved strategic corporation with Youku Tudou Group and the latter
7
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
offered video software services for the Internet TV promoted by the Company and
implanted the function and service of Youku TV App into the full line of products
of the Company.
(2) Joining hands with Tencent Games, we launched the E-TV Game TV. The Konka E-TV
High-end Quality TV will carry selected Tencent games such as Seep Up, GunZ Dash,
QQ Fight the Landlord Poker Game and National War Planes.
3. The Company launched the YI-TV best series and the YIUI professional TV control
system.
(1) In the reporting period, we launched three best series of YI-TV 9800, YI-TV 6680
and YI-TV 1800, as well as the YIUI professional TV control system. As such, we
implemented the “1+1 Strategy” to attract consumer attention with better products
and use experience. The YIUI system is a professional TV control system designed for
intelligent TVs, making intelligent control easier, more direct and more thorough.
(2) In the reporting period, we launched the E-TV Slim LED TV with only 1.28cm in
thickness, which represents the newest product of the internet superlative idea. With
this crucial new product launched and the whole new strategy, our entertainment
oriented transformation will speed up and a new world for intelligent TVs will begin.
4. We have invited international top star Fan Bingbing as our new spokesperson. The
re-start of the spokesperson plan is an important step for us to rebuild our brand
towards young people and fashion.
5. We also start a strategic cooperation with Sichuan TV (a provincial TV station
in China), which is a crucial move for us to transform towards the internet and young
people. We will carry out in-dept cooperation with Sichuan TV in terms of resources,
contents, marketing channels and consumers to deal with the fundamental reform us,
as a household appliance maker, face in business structure, product R&D and marketing
mode under the internet impact.
(III) Analysis to the changes of main financial indicators
Unit: RMB Ten Thousand Yuan
30 Sept. 2014/
31 Dec. 2013/ Increase/decre Increase/decr
Item Jan.-Sept. Main reason for the change
Jan.-Sept. 2013 ase ease (%)
2014
① A prepayment of RMB
488,063,979 for land in
Prepayments 70,404.84 16,427.29 53,977.54 328.58% the current period; ②
Prepayments for materials
increased.
Term deposits and wealth
Interest
798.96 289.84 509.12 175.65% management products
receivable
increased.
Other
New wealth management
current 38,311.60 0.00 38,311.60 -
products, etc.
assets
8
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
According to the new
, other
Available-f
investments where the
or-sale
3,592.99 94.20 3,498.79 3,714.22% Company did not have
financial
control, joint control
assets
over or significant
influence on the invested
parties were restated as
available-for-sale
financial assets.
Constructio
n in 12,727.14 4,992.40 7,734.74 154.93% Plant and infrastructure
progress expenses increased.
Long-term Subsidiaries secured more
93,810.43 500.00 93,310.43 18,662.09%
borrowings long-term borrowings.
Operating The color TV business was
1,346,788.85 1,454,728.81 -107,939.97 -7.42%
revenues of a smaller size.
The relevant costs
Operating
1,147,158.39 1,211,548.70 -64,390.30 -5.31% decreased as the sales of
costs
color TVs decreased.
The exchange loss caused
Financial
12,688.40 -3,074.88 15,763.28 512.65% by exchange rate
expenses
fluctuations increased.
The subsidiary sold shares
of Refond Optoelectronics
and Konka Video &
Investment
42,250.88 -1,065.21 43,316.09 4,066.45% Communication was
gains
transferred. As a result,
investment gains
increased.
Cash
The subsidiary sold shares
received as
14,227.44 304.59 13,922.85 4,571.01% of Refond
investment
Optoelectronics.
gains
Cash
received Wealth management
relating to products came to the
120,247.20 - 120,247.20 -
other solution pay upon maturity
investing in the current period.
activities
Cash paid
relating to
Wealth management
other 156,518.35 - 156,518.35 -
products were bought.
investing
activities
9
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
II. Progress and influence of significant events, as well as the analysis and
explanation on solutions
√ Applicable □ Inapplicable
(I) Progress of urban renewal projects of the Company headquarters of Konka
1. According to the application of the Company, The Restructuring Office of Chengzhong
Village in Nanshan District of Shenzhen issued the Circular of the Main Implementer
of the Renewal Project of the Headquarters of Konka Group in Nanshan District,
Shenzhen in Nov. 2012, which publicized Konka Group as the main implementer of the
Renewal Project of the Headquarters of Konka Group.
2. In August, 2013, Overseas Chinese Town Group submitted the Comment Letter of
Opposing Konka Group to be the Only Subject of: Implementation of the Urban Updating
Projects of Konka Headquarter Plant” for application to stop the formalities of Konka
Group headquarter plant and handle it after appropriate discussion between Overseas
Chinese Town Group and the Company. According to the Comment Letter, the Shenzhen
Nanshan Reconstruction Office of Urban Village (old village) released the Comment
Letter of Konka Group to be the Subject of Implementation of Urban Updating Projects
of Konka Headquarter Plant in August, 2013 to coordinate the rights and interests
of all Parties and make suggestions to the Comment Letter.
Since then, although through negotiated by the relevant parties, there had not reached
consensus on “whether Konka has the right to be as the sole implementer of plant
renewal of the headquarters”.
3. In order to resolve the differences and promote the implementation of urban
rd
updating projects of Konka headquarter plant, according to the 53 meeting of the
th
7 Board of Directors, the Company decided to submit the dispute of Konka Group to
be the only subject of implementation of the urban updating projects to Shenzhen Court
of International Arbitration. In order to promote the implementation of urban
th
updating projects of Konka headquarter plant, according to the resolution of 54
th
meeting of the 7 Board of Directors, Konka Group shall pay the land funds for the
projects in advance before the arbitration result. If the arbitral agency identifies
the Company as the only development subject, the Company should continue implementing
the project. If the arbitral agent asserts that the Company could not be the only
development subject, the development plan should be discussed and agreed by the
Company and OCT Group to handle the transfer formalities of the land and share the
paid prices on land.
4. On 10 Mar., 2014, the Company has applied to Shenzhen Court of International
Arbitration for arbitration of the subject of implementation of urban updating
project of Konka headquarter plant to regard Overseas Chinese Town Group as the
respondent and the Company as the only subject of implementation to develop the urban
updating project of Shenzhen Nanshan Konka Group headquarter plant.
During 16 April, 2014 to 17 June, 2014, four court sessions were held by Shenzhen
Court of International Arbitration. Overseas Chinese Group and the Company submitted
the request for arbitration, evidence materials, written pleas and defending
opinions.
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Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
On 31 July, 2014, the Company received the consent award from Shenzhen Court of
International Arbitration (No. HNGZC [2014] D97) with decisions:
(1) Rejecting the request of Konka Group to be the only subject of implementation
of Urban Updating Projects of Shenzhen Nanshan Konka Group Headquarter Plant.
(2) Rejecting the request about counsel fees from Konka Group.
(3) Rejecting the counterclaim about counsel fees from Overseas Chinese Town Group.
(4) The arbitration fee of this case is 490,926.54 Yuan, totally assuming by Overseas
Chinese Town Group. The repaid 29,050 Yuan by Overseas Chinese Town Group could be
included in the arbitration fees paid by Overseas Chinese Town Group.
(5) The case with a counterclaim arbitration fee of RMB 29050, shall be borne fully
by the OCT Group. OCT Group prepaid RMB 29050 as the arbitration fee that OCT Group
shall bear.
5. The Company received the Letter of the Joint Development of the Renewal Project
of Headquarter of Konka Group from OCT Group in Sep. 2014, for sooner promote the
renewal events of the city land of headquarter of Konka Group and fully maintain the
interests of the Konka Group as well as the broad masses of the investors, the
cooperative development proposal suggested by the OCT Group Co., Ltd. was as follows:
(I) OCT Group Co., Ltd. and Konka Group jointly set up the renewal transformation
project of developing headquarter of Konka Group by joint venture company.
(II) The equity propotion of the joint venture company was: OCT Group Co., Ltd. of
40% while Konka Group of 60%.
The Company presented the Proposal on the Renewal Project of the Joint Development
rd th
of Headquarter of Konka Group with OCT Group to the 63 Session of the 7 Board of
Directors for review. When the Board of Directors were making the decision, affiliated
directors such as Mr. Wu Siyuan, Mr. Su Zheng, Mrs. Wang Xiaowen and Mr. He Haibin
avoided the voting, while the rest of the 3 Independent Directors voted down the
proposal. In view of the divergence of the shareholders of Konka Group was rather
big about the corporative development proposal on the renewal project of headquarter
of Konka Group, and the OCT Group Co., Ltd. had not made any specified statement on
the corporative development proposal put forward by it, the Independent Directors
could not judge the fairness as well as the reasonability of the proposal. Thus the
3 Independent Directors of the Company made abstention vote for the proposal which
led the proposal deprecated by the Board of Directors of the Company.
Index to the relevant
Overview of the significant event Date of disclosure announcement disclosed on the
website
1. Announcement on receiving Letter of Joined Efforts
In Developing Konka Group Headquarters Factory Urban
30 Sep. 2014 www.cninfo.com.cn
Renewal Projects from Overseas Chinese Town Group
Co,. Ltd.
rd th
2. Resolution Announcement on 63 Meeting of 7
30 Sep. 2014 www.cninfo.com.cn
Session of Board of Directors
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Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
II. Other significant event: about the relevant events of the sale of inventory
fractional share
The Company due to the implementation of the equity distribution business which came
into being 29,978 fractional shares of A share and 234 B of share. In order to solve
the fractional share problems left over by history, the Company, in Jul. 2014 signed
Sale of Fractional Share Agreement of China Clearing Co., Ltd. Shenzhen Branch
Entrusted by Listed Company with registered company and entrusted China Clearing Co.,
Ltd. Shenzhen Branch with dealing with the sale of fractional share. In Aug. 2014
the actual income of the sale of the A share (Including interest) was RMB 149,328.22
and the B share HK$ 716.92 which had been classified into the bank account of the
Company and was included in capital reserve subject in accordance with the
stipulations.
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
□ Applicable √ Inapplicable
No such commitments in the reporting period.
IV. Predict the 2014 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
√ Applicable □ Inapplicable
Number Shareh
Initia Number Shareh Gain/l
of olding
l of olding Closin oss in
Variet Code shares percen
Name of invest shares percen g book report Accoun Source
y of of held tage
securi ment held tage value ing ting of
securi securi at at
ties cost at at (RMB period title stock
ties ties period period
(RMB period period Yuan) (RMB
-begin -begin
Yuan) -end -end Yuan)
ning ning
Availa Subscr
ble-fo iption
2,311, 117,31 117,31 1,076, r-sale of ad
Stock 000002 Vanke A 0.00% 0.00% 0.00
748.07 0 0 905.80 finan dition
cial a al iss
ssets ue
Other securities
investments held at 0.00 0 -- 0 -- 0.00 0.00 -- --
period-end
2,311, 117,31 117,31 1,076,
Total -- -- 0.00 -- --
748.07 0 0 905.80
Disclosure date of the
Inapplicable
board announcement on
12
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
approval of the
securities investment
Disclosure date of the
general meeting
announcement on approval Inapplicable
of the securities
investment (if any)
Shareholdings in other listed companies
□Applicable √Inapplicable
The Company did not have any shareholding in any other listed company in the reporting
period.
VI. Investments in derivatives
□Applicable √Inapplicable
The Company did not invest in any derivative in the reporting period.
VII. Researches, visits and interviews received in the reporting period
□Applicable √Inapplicable
The Company did not receive any research, visit and interview in the reporting period.
VIII.the Newly Promulgated or Amended Accounting Standards
According to the ,we analyzed the influence of the accounting policy changes on
our financial position and operating results, as well as the influence of important
standard changes on our consolidated financial statements. Our consolidated
financial statements were mainly affected by the change of the long-term equity
investment-related standard, with details as follows:
Unit: RMB Yuan
Basic 1 Jan. 2013 31 Dec. 2013
transaction Capital Retained Retained
Investee Capital reserve
information reserve earnings earnings
(+/-)
[Note 1] (+/-) (+/-) (+/-)
Shenzhen
Refond
39,188,772.96 -39,188,772.96 39,188,772.96 -39,188,772.96
Optoelectronic
s Co., Ltd.
Total 39,188,772.96 -39,188,772.96 39,188,772.96 -39,188,772.96
Note：
[1] According to the new , concerning long-term equity investments measured at
the equity method, in regard to changes of other comprehensive incomes and other
changes of owners’ equity of an investee other than net gains and losses and profit
allocation, the investing party shall measure its share of profit according to its
shareholding percentage in the investee, which shall be debited to other
13
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
comprehensive incomes and other equity changes and credited to “other comprehensive
incomes” and “capital reserve—other capital reserve”. As such, the changes of
other comprehensive incomes and other changes of owners’ equity of Shenzhen Refond
Optoelectronics Co., Ltd. other than net gains and losses and profit allocation as
a result of investment increase, etc. that had been recorded into gains and losses
in previous periods were retrospectively adjusted according to the new accounting
standards, adding them to “capital reserve—other capital reserve” and reducing
them from “opening retained profits”.
[2] A positive number means increase and a negative number means decrease.
According to the rules for balance sheet preparation in the new , where an enterprise is involved in bu
siness in relation to “other comprehensive incomes” it shall have the
“other comprehensive incomes” item in accounting treatment. When the
enterprise carries out accounting treatment on other comprehensive incom
es, it shall treat them under the “other comprehensive incomes” item
and separate them from the “capital reserve” item. We restated the ca
pital reserve on available-for-sale financial assets as other comprehens
ive incomes and included the foreign-currency statement translation diff
erence in the “other comprehensive incomes” item.
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Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
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 2,319,723,495.89 1,843,743,089.94
Settlement reserves
Intra-group lendings
Financial assets measured at
fair value and of which changes
are recorded into current gains
and losses
Notes receivable 3,104,168,556.70 4,150,779,374.32
Accounts receivable 2,494,794,615.74 2,460,996,984.92
Accounts paid in advance 704,048,371.54 164,272,929.59
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance
contract reserves
Interest receivable 7,989,609.01 2,898,419.90
Dividend receivable
Other accounts receivable 239,714,052.22 298,749,414.95
Financial assets purchased
under agreements to resell
Inventories 3,563,217,183.36 3,582,669,024.26
Assets held for sale
Non-current assets due within
1 year
Other current assets 383,115,952.51
Total current assets 12,816,771,836.97 12,504,109,237.88
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial
35,929,905.80 941,999.30
assets
Held-to-maturity investments
Long-term accounts receivable
15
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Long-term equity investment 383,840,853.78 446,155,499.42
Investing property 233,780,636.14 237,986,524.12
Fixed assets 1,867,232,799.50 1,908,503,979.80
Construction in progress 127,271,430.84 49,924,027.97
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 352,681,475.25 359,585,571.12
R&D expense
Goodwill 3,914,638.11 3,943,671.53
Long-term deferred expenses 25,824,096.64 13,405,084.94
Deferred income tax assets 213,569,087.46 218,728,739.41
Other non-current assets
Total of non-current assets 3,244,044,923.52 3,239,175,097.61
Total assets 16,060,816,760.49 15,743,284,335.49
Current liabilities:
Short-term borrowings 4,892,499,557.55 5,239,069,764.48
Borrowings from Central Bank
Customer bank deposits and due
to banks and other financial
institutions
Intra-group borrowings
Financial liabilities
measured at fair value and of
which changes are recorded into
current gains and losses
Notes payable 678,781,200.04 565,137,790.84
Accounts payable 3,028,010,614.23 3,341,804,144.12
Accounts received in advance 423,952,034.02 482,716,035.68
Financial assets sold for
repurchase
Handling charges and
commissions payable
Employee ’ s compensation
275,019,168.12 332,090,987.76
payable
Tax payable -62,223,550.11 -94,670,496.91
Interest payable 27,697,187.96 34,945,870.48
Dividend payable 0.00
16
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Other accounts payable 1,403,468,592.04 1,391,396,130.97
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Liabilities held for sale
Non-current liabilities due
1,755,444.00 1,755,444.00
within 1 year
Other current liabilities
Total current liabilities 10,668,960,247.85 11,294,245,671.42
Non-current liabilities:
Long-term borrowings 938,104,312.91 5,000,000.00
Bonds payable
Long-term payables 30,195,300.25 31,366,530.13
Specific payables
Estimated liabilities 911,085.41 911,085.41
Deferred income tax
liabilities
Other non-current liabilities 136,811,615.70 131,658,369.11
Total non-current liabilities 1,106,022,314.27 168,935,984.65
Total liabilities 11,774,982,562.12 11,463,181,656.07
Owners ’ equity (or
shareholders’ equity)
Paid-up capital (or share
1,203,972,704.00 1,203,972,704.00
capital)
Capital reserves 1,270,100,956.66 1,313,594,715.74
Less: Treasury stock
Specific reserves
Other comprehensive incomes 18,640,444.51 16,179,316.17
Provisions for general risks 847,908,466.28 847,908,466.28
Retained profits 734,342,477.45 698,802,949.44
Foreign exchange difference
Minority interests 4,074,965,048.90 4,080,458,151.63
Total owners ’ (or
210,869,149.47 199,644,527.79
shareholders’) equity
Total liabilities and owners’
4,285,834,198.37 4,280,102,679.42
(or shareholders’) equity
Current Assets: 16,060,816,760.49 15,743,284,335.49
17
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang 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 1,522,391,082.42 1,118,577,010.98
Financial assets measured at fair value and of
which changes are recorded into current gains and
losses
Notes receivable 2,991,528,723.74 3,963,969,934.07
Accounts receivable 1,746,011,407.34 1,543,050,476.67
Accounts paid in advance 796,777,222.68 239,011,903.60
Interest receivable 31,935,760.50 12,151,753.22
Dividend receivable
Other accounts receivable 377,421,582.25 668,297,184.77
Inventories 2,210,069,583.82 2,333,107,085.15
Assets held for sale
Non-current assets due within 1 year
Other current assets 369,115,952.51
Total current assets 10,045,251,315.26 9,878,165,348.46
Non-current assets:
Available-for-sale financial assets 15,629,905.80 941,999.30
Held-to-maturity investments 600,000,000.00 505,000,000.00
Long-term accounts receivable
Long-term equity investment 1,660,371,025.93 1,675,299,526.82
Investing property 233,780,636.14 237,986,524.12
Fixed assets 593,113,062.93 599,950,784.99
Construction in progress 40,259,292.56 8,713,508.63
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 73,523,256.75 76,133,522.45
R&D expense
Goodwill
18
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Long-term deferred expenses 13,358,857.30 4,597,304.79
Deferred income tax assets 188,378,978.51 183,062,820.76
Other non-current assets
Total of non-current assets 3,418,415,015.92 3,291,685,991.86
Total assets 13,463,666,331.18 13,169,851,340.32
Current liabilities:
Short-term borrowings 575,796,101.90 1,023,913,426.22
Financial liabilities measured at fair value and
of which changes are recorded into current gains and
losses
Notes payable 232,179,734.78 190,949,990.17
Accounts payable 7,275,412,904.65 6,320,384,438.01
Accounts received in advance 134,988,561.38 186,326,967.62
Employee’s compensation payable 136,204,213.46 187,697,895.87
Tax payable -117,197,697.85 -92,265,968.33
Interest payable 7,058,903.09 21,189,076.79
Dividend payable
Other accounts payable 1,175,805,947.11 1,243,478,983.84
Liabilities held for sale
Non-current liabilities due within 1 year
Other current liabilities
Total current liabilities 9,420,248,668.52 9,081,674,810.19
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities
Other non-current liabilities 77,823,660.73 74,192,786.56
Total non-current liabilities 77,823,660.73 74,192,786.56
Total liabilities 9,498,072,329.25 9,155,867,596.75
Owners’ equity (or shareholders’ equity)
Paid-up capital (or share capital) 1,203,972,704.00 1,203,972,704.00
Capital reserves 1,250,283,488.79 1,250,133,590.04
19
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Less: Treasury stock
Specific reserves
Other comprehensive incomes 101,179.87 0
Provisions for general risks 847,908,466.28 847,908,466.28
Provisions for general risks
Retained profits 663,328,162.99 711,968,983.25
Total liabilities and owners’ (or shareholders’)
3,965,594,001.93 4,013,983,743.57
equity
Current Assets: 13,463,666,331.18 13,169,851,340.32
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang 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. 2014 Jul.-Sept. 2013
I. Total operating revenues 5,069,587,917.51 5,125,888,856.21
Including: Sales income 5,069,587,917.51 5,125,888,856.21
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 5,286,732,376.10 5,155,561,503.95
Including: Cost of sales 4,461,016,065.72 4,279,709,450.47
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 19,684,285.29 15,552,238.27
Selling and distribution expenses 603,920,274.15 672,680,950.49
Administrative expenses 161,335,348.26 167,099,846.16
Financial expenses 25,023,270.63 -9,041,427.05
Asset impairment loss 15,753,132.05 29,560,445.61
Add: Gain/(loss) from change in fair value (“-”
means loss)
Gain/(loss) from investment (“-” means
156,068,719.20 -2,475,483.67
loss)
Including: share of profits in associates
150,388,087.59 -2,475,483.67
and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) -61,075,739.39 -32,148,131.41
Add: non-operating income 87,715,844.22 130,589,476.80
Less: non-operating expense 7,305,180.46 5,735,856.70
Including: loss from non-current asset
2,646,864.87 3,011,920.69
disposal
20
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
IV. Total profit (“-” means loss) 19,334,924.37 92,705,488.69
Less: Income tax expense 16,856,829.43 89,039,674.82
V. Net profit (“-” means loss) 2,478,094.94 3,665,813.87
Including: Net profit achieved by combined
parties before the combinations
Attributable to owners of the Company 2,219,144.43 1,025,980.12
Minority shareholders’ income 258,950.51 2,639,833.75
VI. Earnings per share -- --
(I) Basic earnings per share 0.0018 0.0009
(II) Diluted earnings per share 0.0018 0.0009
VII. Other comprehensive incomes 309,882.96 -749,852.99
Including: Other comprehensive incomes items that
cannot be reclassified as gains and losses in the
subsequent accounting periods 229,818.89 -686,505.59
Other comprehensive incomes items that will be
reclassified as gains and losses in the subsequent
accounting periods as relevant requirements are
met 80,064.07 -63,347.40
VIII. Total comprehensive incomes 2,787,977.90 2,915,960.88
Attributable to owners of the Company 276,127.13
2,483,473.70
Attributable to minority shareholders 2,639,833.75
304,504.20
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang 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. 2014 Jul.-Sept. 2013
I. Total sales 4,927,749,644.75 5,400,743,339.80
Less: cost of sales 4,507,114,899.36 4,784,525,416.90
Business taxes and surcharges 6,621,386.11 8,959,658.28
Distribution expenses 475,996,986.70 513,502,645.20
Administrative expenses 113,759,087.34 103,247,670.81
Financial costs 2,457,573.62 6,252,701.05
Impairment loss 7,528,125.66 30,219,405.32
Add: gain/(loss) from change in fair value (“-”
means loss)
Gain/(loss) from investment (“-” means loss) 5,680,116.54
Including: income form investment on associates
and joint ventures
II. Business profit (“-” means loss) -180,048,297.50 -45,964,157.76
Add: non-business income 79,279,469.92 118,023,308.68
Less: non-business expense 5,627,863.53 4,579,720.14
Including: loss from non-current asset disposal 1,173,968.94 2,409,461.96
III. Total profit (“-” means loss) -106,396,691.11 67,479,430.78
Less: income tax expense -26,577,644.05 18,220,744.94
IV. Net profit (“-” means loss) -79,819,047.06 49,258,685.84
V. Earnings per share -- --
(I) Basic earnings per share -0.0660 0.0409
21
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
(II) Diluted earnings per share -0.0660 0.0409
VI. Other comprehensive income -63,347.40
80,064.07
Including: Other comprehensive incomes items that
cannot be reclassified as gains and losses in the
-
subsequent accounting periods 0.00
Other comprehensive incomes items that will be
reclassified as gains and losses in the subsequent
80,064.07
accounting periods as relevant requirements are met -63,347.40
-79,738,982.99
VII. Total comprehensive income 49,195,338.44
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang Chief of the accounting division: Xu Youshan
5. Consolidated income statement for Jan.-Sept. 2014
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Total operating revenues 13,467,888,459.14 14,547,288,137.21
Including: Sales income 13,467,888,459.14 14,547,288,137.21
Interest income
Premium income
Handling charge and commission income
II. Total operating cost 13,922,489,483.67 14,549,916,838.04
Including: Cost of sales 11,471,583,908.48 12,115,486,956.16
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 47,098,016.85 48,586,402.77
Selling and distribution expenses 1,759,788,635.00 1,884,084,040.29
Administrative expenses 465,777,790.64 480,035,954.68
Financial expenses 126,884,047.87 -30,748,765.34
Asset impairment loss 51,357,084.83 52,472,249.48
Add: Gain/(loss) from change in fair value (“-” means
loss)
Gain/(loss) from investment (“-” means loss) 422,508,837.83 -10,652,063.79
Including: share of profits in associates and joint 152,108,088.99 -10,673,179.59
22
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) -32,092,186.70 -13,280,764.62
Add: non-operating income 145,931,312.24 176,544,290.82
Less: non-operating expense 11,341,121.48 10,861,709.33
Including: loss from non-current asset disposal 6,115,779.18 6,880,721.42
IV. Total profit (“-” means loss) 102,498,004.06 152,401,816.87
Less: Income tax expense 52,693,555.37 112,087,597.00
V. Net profit (“-” means loss) 49,804,448.69 40,314,219.87
Including: Net profit achieved by combined parties
before the combinations
Attributable to owners of the Company 47,579,255.05 41,573,653.74
Minority shareholders’ income 2,225,193.64 -1,259,433.87
VI. Earnings per share -- --
(I) Basic earnings per share 0.0395 0.0345
(II) Diluted earnings per share 0.0395 0.0345
VII. Other comprehensive incomes 2,568,338.32 2,130,236.42
Including: Other comprehensive incomes items that cannot
be reclassified as gains and losses in the subsequent 2,467,158.45 2,217,339.09
accounting periods
Other comprehensive incomes items that will be
reclassified as gains and losses in the subsequent 101,179.87 -87,102.67
accounting periods as relevant requirements are met
VIII. Total comprehensive incomes 52,372,787.01 42,444,456.29
Attributable to owners of the Company 50,040,383.39 43,703,890.16
Attributable to minority shareholders 2,332,403.62 -1,259,433.87
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang Chief of the accounting division: Xu Youshan
6. Income statement of the Company for Jan.-Sept. 2014
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Total sales 13,383,758,078.78 15,102,962,063.94
Less: cost of sales 12,000,413,762.42 13,284,240,803.60
Business taxes and surcharges 23,583,446.31 30,441,922.24
Distribution expenses 1,398,351,839.36 1,457,237,045.98
Administrative expenses 309,854,623.79 242,813,780.89
Financial costs 30,428,246.25 -173,124.91
Impairment loss 35,304,837.36 45,315,916.92
23
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Add: gain/(loss) from change in fair value (“-”
means loss)
Gain/(loss) from investment (“-” means loss) 260,851,094.05 21,115.80
Including: income form investment on associates
-2,175,501.89
and joint ventures
II. Business profit (“-” means loss) -153,327,582.66 43,106,835.02
Add: non-business income 112,639,833.40 146,897,833.75
Less: non-business expense 7,236,599.91 5,947,066.99
Including: loss from non-current asset disposal 2,688,032.04 3,118,103.04
III. Total profit (“-” means loss) -47,924,349.17 184,057,601.78
Less: income tax expense -11,323,255.95 45,716,422.13
IV. Net profit (“-” means loss) -36,601,093.22 138,341,179.65
V. Earnings per share -- --
(I) Basic earnings per share -0.0300 0.1150
(II) Diluted earnings per share -0.0300 0.1150
VI. Other comprehensive income 101,179.87 -87,102.67
Including: Other comprehensive incomes items that
cannot be reclassified as gains and losses in the 0.00 0.00
subsequent accounting periods
Other comprehensive incomes items that will be
reclassified as gains and losses in the subsequent 101,179.87 -87,102.67
accounting periods as relevant requirements are met
VII. Total comprehensive income -36,499,913.35 138,254,076.98
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang Chief of the accounting division: Xu Youshan
7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and
12,555,098,512.73 13,942,683,102.29
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
Net cash received from reinsurance business
Net increase of deposits of policy holders and
investment fund
Net increase of disposal of tradable financial
assets
24
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Cash received from interest, handling charges and
commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 358,329,202.50 330,667,945.66
Other cash received relating to operating
235,861,761.39 271,528,552.11
activities
Subtotal of cash inflows from operating activities 13,149,289,476.62 14,544,879,600.06
Cash paid for goods and services 9,380,348,724.96 8,819,908,840.86
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 1,323,467,590.83 1,255,507,234.76
Various taxes paid 563,998,566.46 1,514,126,665.13
Other cash payment relating to operating
926,764,281.16 1,119,807,687.01
activities
Subtotal of cash outflows from operating activities 12,194,579,163.41 12,709,350,427.76
Net cash flows from operating activities 954,710,313.21 1,835,529,172.30
II. Cash flows from investing activities:
Cash received from withdrawal of investments 80,177,238.14 15,137,680.00
Cash received from return on investments 142,274,404.64 3,045,900.17
Net cash received from disposal of fixed assets,
8,486,488.23 29,604,684.18
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
238,782,351.98 20,818,708.75
or other business units
Other cash received relating to investing
1,202,472,043.31
activities
Subtotal of cash inflows from investing activities 1,672,192,526.30 68,606,973.10
Cash paid to acquire fixed assets, intangible
698,773,238.21 221,418,555.64
assets and other long-term assets
Cash paid for investment 25,623,300.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing
1,565,183,497.35
activities
Subtotal of cash outflows from investing activities 2,289,580,035.56 221,418,555.64
Net cash flows from investing activities -617,387,509.26 -152,811,582.54
III. Cash Flows from Financing Activities:
Cash received from capital contributions 2,800,000.00
Including: Cash received from minority
2,800,000.00
shareholder investments by subsidiaries
Cash received from borrowings 2,981,063,581.11 3,748,968,680.44
Cash received from issuance of bonds
Other cash received relating to financing
29,200,869.52 1,137,986,353.39
activities
Subtotal of cash inflows from financing activities 3,013,064,450.63 4,886,955,033.83
25
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Repayment of borrowings 2,741,806,676.36 5,127,267,806.62
Cash paid for interest expenses and distribution
84,152,056.20 100,322,810.55
of dividends or profit
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash payments relating to financing
598,450,810.48 511,026,566.30
activities
Sub-total of cash outflows from financing
3,424,409,543.04 5,738,617,183.47
activities
Net cash flows from financing activities -411,345,092.41 -851,662,149.64
IV. Effect of foreign exchange rate changes on cash
9,106,902.07 18,504,467.98
and cash equivalents
V. Net increase in cash and cash equivalents -64,915,386.39 849,559,908.10
Add: Opening balance of cash and cash
1,771,489,421.21 824,043,169.37
equivalents
VI. Closing balance of cash and cash equivalents 1,706,574,034.82 1,673,603,077.47
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang Chief of the accounting division: Xu Youshan
8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Sept. 2014 Jan.-Sept. 2013
I. Cash flows from operating activities:
Cash received from sale of commodities and
9,534,307,204.66 10,873,897,439.73
rendering of service
Tax refunds received 172,815,986.06 247,594,244.97
Other cash received relating to operating
357,621,689.04 189,761,400.68
activities
Subtotal of cash inflows from operating activities 10,064,744,879.76 11,311,253,085.38
Cash paid for goods and services 7,404,978,331.51 5,996,294,072.12
Cash paid to and for employees 729,796,739.00 698,252,961.51
Various taxes paid 236,222,067.20 1,171,595,372.06
Other cash payment relating to operating
893,363,473.32 959,520,488.69
activities
Subtotal of cash outflows from operating activities 9,264,360,611.03 8,825,662,894.38
Net cash flows from operating activities 800,384,268.73 2,485,590,191.00
II. Cash flows from investing activities:
Cash received from retraction of investments 301,267,191.25 20,818,708.75
Cash received from return on investments 13,460,524.61 13,570,488.72
Net cash received from disposal of fixed assets,
7,557,428.23 22,527,686.18
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
or other business units
Other cash received relating to investing
1,202,472,043.31 30,000,000.00
activities
Subtotal of cash inflows from investing activities 1,524,757,187.40 86,916,883.65
Cash paid to acquire fixed assets, intangible
568,075,101.35 111,745,964.46
assets and other long-term assets
Cash paid for investment 12,523,300.00
Net cash paid to acquire subsidiaries and other
business units
26
Report for the Third Quarter of 2014 of Konka Group Co., Ltd.
Other cash payments relating to investing
1,646,000,000.00 140,000,000.00
activities
Subtotal of cash outflows from investing activities 2,226,598,401.35 251,745,964.46
Net cash flows from investing activities -701,841,213.95 -164,829,080.81
III. Cash Flows from Financing Activities:
Cash received from capital contributions
Cash received from borrowings 142,130,800.00
Cash received from issuance of bonds
Other cash received relating to financing
353,481,347.13 1,137,986,353.39
activities
Subtotal of cash inflows from financing activities 353,481,347.13 1,280,117,153.39
Repayment of borrowings 2,610,797,519.55
Cash paid for interest expenses and distribution
11,854,357.13 70,127,386.19
of dividends or profit
Other cash payments relating to financing
595,599,703.87 509,344,082.83
activities
Sub-total of cash outflows from financing
607,454,061.00 3,190,268,988.57
activities
Net cash flows from financing activities -253,972,713.87 -1,910,151,835.18
IV. Effect of foreign exchange rate changes on cash
-2,603,210.17 5,922,919.95
and cash equivalents
V. Net increase in cash and cash equivalents -158,032,869.26 416,532,194.96
Add: Opening balance of cash and cash
1,117,689,643.16 365,891,615.75
equivalents
VI. Closing balance of cash and cash equivalents 959,656,773.90 782,423,810.71
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Huang
Zhiqiang Chief of the accounting division: Xu Youshan
II. Audit report
Is this report audited?
□ Yes √ No
This report is not audited.
Chief of the Board of Directors: Wu Siyuan
Konka Group Co., Ltd.
Board of Directors
28 Oct. 2014
27
