Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Konka Group Co., Ltd.
Report for the First Quarter of 2015
2015-18
Apr. 2015
1
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and
senior management staff of Konka Group Co., Ltd. (hereinafter referred to as
“the Company”) warrant that the information carried in 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 have attended the board session for reviewing this report.
Chen Yuehua, 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 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 First Quarter of 2015 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
Jan.-Mar. 2015 Jan.-Mar. 2014 +/- (%)
Operating revenues (RMB Yuan) 4,569,152,230.30 4,049,737,785.15 12.83%
Net profit attributable to shareholders of
7,752,441.61 9,522,762.31 -18.59%
the Company (RMB Yuan)
Net profit attributable to shareholders of
the Company after extraordinary gains -214,058.24 149,469.07 -243.21%
and losses (RMB Yuan)
Net cash flows from operating activities
277,361,649.37 935,058,191.82 -70.34%
(RMB Yuan)
Basic EPS (RMB Yuan/share) 0.0064 0.0079 -18.99%
Diluted EPS (RMB Yuan/share) 0.0064 0.0079 -18.99%
Weighted average ROE (%) 0.19% 0.23% -0.04%
31 Mar. 2015 31 Dec. 2014 +/- (%)
Total assets (RMB Yuan) 16,084,083,708.65 16,779,359,276.65 -4.14%
Net assets attributable to shareholders of
4,111,305,157.03 4,103,478,971.07 0.19%
the Company (RMB Yuan)
Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Item Jan.-Mar. 2015 Explanation
Gains/losses on the disposal of non-current assets (including the offset part of the
-573,789.69
asset impairment provisions)
Government grants recognized in the current period, except for those acquired in
the ordinary course of business or granted at certain quotas or amounts according 4,943,335.85
to the government’s unified standards
Gain/loss on entrusting others with investments or asset management 1,571,095.90
Gain/loss on entrustment loans 759,999.99
Non-operating income and expense other than the above 2,753,886.36
Less: Income tax effects 1,242,760.44
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Minority interests effects (after tax) 245,268.12
Total 7,966,499.85 --
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
Item Amount (RMB Yuan) Reason
Government grants closely related to the Company ’ s normal
Tax rebates on software 30,938,464.43 operation and constantly given at certain quotas or amounts
according to the government’s policies and standards
II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders
1. Total number of common shareholders at the period-end and shareholdings of top 10
common shareholders
Unit: share
Total number of common
62,436
shareholders at the period-end
Shareholdings of top 10 common shareholders
Shareholdi Pledged or frozen shares
Number of
Name of Nature of ng Number of
restricted Number of
shareholder shareholder percentage shares held Status of shares
shares held shares
(%)
OCT Pledged 0
State-owned
ENTERPRISES 21.75% 261,873,466 198,381,940
corporation Frozen 0
CO.
Guoyuan Securities Pledged 0
Foreign
Brokerage (HK) 2.89% 34,826,999 0
corporation Frozen 0
Co., Ltd.
Domestic Pledged 0
National Social
non-state-own
Security Fund 2.89% 34,766,528 0
ed Frozen 0
Portfolio No. 108
corporation
China Resources Domestic Pledged 0
SZITIC-Extraordina non-state-own
2.48% 29,878,723 0
ry No. 18 Fund ed Frozen 0
Trust corporation
GAOLING FUND, Foreign Pledged 0
2.19% 26,400,625 0
L.P. corporation Frozen 0
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
HOLY TIME Foreign Pledged 0
2.18% 26,290,177 0
GROUP LIMITED corporation Frozen 0
China Resources Domestic Pledged 0
SZITIC-Extraordina non-state-own
2.01% 24,183,850 0
ry No. 17 Fund ed Frozen 0
Trust corporation
GUOTAI JUNAN Pledged 0
Foreign
SECURITIES(HON 1.53% 18,474,759 0
corporation Frozen 0
GKONG) LIMITED
Domestic Pledged 0
Sun Zhenxiang 1.17% 14,093,988 0
natural person Frozen 0
Shenzhen Ping An Pledged 0
Dahua Huitong
Wealth-Ping An
Domestic
Bank-Specific
non-state-own
Customer Asset 0.98% 11,743,172 0
ed Frozen 0
Management Plan
corporation
of No. 1 of Ping An
Huitong Chuangfu
Hongyu
Shareholdings of top 10 non-restricted common shareholders
Variety of shares
Name of shareholder Number of non-restricted common shares held
Variety Number
RMB ordinary
OCT ENTERPRISES CO. 63,491,526 63,491,526
shares
Domestically
Guoyuan Securities Brokerage
34,826,999 listed foreign 34,826,999
(HK) Co., Ltd.
shares
National Social Security Fund RMB ordinary
34,766,528 34,766,528
Portfolio No. 108 shares
China Resources
RMB ordinary
SZITIC-Extraordinary No. 18 29,878,723 29,878,723
shares
Fund Trust
Domestically
GAOLING FUND, L.P. 26,400,625 listed foreign 26,400,625
shares
Domestically
HOLY TIME GROUP LIMITED 26,290,177 listed foreign 26,290,177
shares
China Resources RMB ordinary
24,183,850 24,183,850
SZITIC-Extraordinary No. 17 shares
5
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Fund Trust
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 18,474,759 listed foreign 18,474,759
LIMITED shares
RMB ordinary
Sun Zhenxiang 14,093,988 14,093,988
shares
Shenzhen Ping An Dahua
Huitong Wealth-Ping An
Bank-Specific Customer Asset RMB ordinary
11,743,172 11,743,172
Management Plan of No. 1 of shares
Ping An Huitong Chuangfu
Hongyu
Explanation on associated The first majority shareholder OVERSEAS CHINESE TOWN ENTERPRISES CO. has no
relationship or persons acting in related-party relationship with other shareholders and they are not acting-in-concert parties,
concert among the either. Except for that, the Company does not know whether the other shareholders are
above-mentioned shareholders related parties and whether they are acting-in-concert parties.
Top 10 common shareholders
A shares shareholder — Sun Zhenxiang held 14,093,988 shares through customer credit
taking part in securities margin
trading collateral securities account of GF Securities Co., Ltd.
trading (if any)
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of
the Company conduct any promissory repo during the reporting period?
□ Yea √ No
No such cases in the reporting period.
2. Total number of preferred shareholders at the period-end and shareholdings of top 10
preferred shareholders
□ Applicable √ Inapplicable
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial indicators for the
reporting period, as well as the reasons for these changes
√ Applicable □ Inapplicable
(I) In the reporting period, we continued to push forward the E-strategy, with an improved product
structure, a larger proportion of intelligent TVs in the total sales volume and a growth in the sales
income from color TVs. During the reporting period, we also launched Konka T60 Super TV, an
internet intelligent TV jointly developed by Konka, GITV (Galaxy Internet TV) and Tencent. GITV
was the only integrated broadcast control platform, with Tencent ’ s quality authorized contents
introduced via its contents service platform. T60 carried the YIUI control system independently
developed by Konka, where we carried out an in-depth cooperation with Tencent in UI (user
interface) to create the whole new Q-theme and introduce various software and contents services of
Tencent.
However, the reporting period recorded a drop in our net profits due to the cutthroat price
competition in the color TV market.
(II) Changes in main financial indicators:
Unit: RMB Ten thousand
Closing Change in Ratio of change
Item Opening amount Main reason for the change
amount amount (%)
Interest The accrual interest incomes
412.98 188.57 224.41 119.00%
receivable increased.
① The bank deposits in other
current assets that had not yet
arrived last year arrived in the
Other
current period, and other current
current 21,584.68 56,802.02 -35,217.34 -62.00%
assets decreased accordingly; ②
assets
The pre-paid and to-be-deducted
taxes reclassified into other current
assets at the period-end decreased.
Taxes and The unpaid taxes and fares
4,291.63 11,255.70 -6,964.07 -61.87%
fares payable decreased.
Interest
2,794.95 2,287.24 507.71 22.20% The accrual interest increased.
payable
Operating
456,915.22 404,973.78 51,941.44 12.83% The sales increased.
revenues
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Operating
386,190.87 331,429.69 54,761.19 16.52% The sales increased.
costs
Financial Financing costs and exchange rate
7,655.13 5,699.61 1,955.52 34.31%
expenses fluctuations
Investment
287.77 217.43 70.34 32.35% Wealth management
gains
Income tax The total profits of the Company
2,737.09 1,273.72 1,463.38 114.89%
expenses (without subsidiaries) increased.
II. Progress of significant events and analysis & explanations on their influence and solutions
√ Applicable □ Inapplicable
(I) Progress of the urban renewal project in the plant area of the Company’s headquarters
In order to push forward the urban renewal of the plant area of the Konka Group Headquarters and
fully safeguard the interests of the Company and its investors, as reviewed and approved at the 67th
Session of the 7th Board of Directors and the Second Special General Meeting for 2014, the
Company and OCT Enterprises Co. were to jointly incorporate an enterprise to work on the renewal
project of the plant area of the Konka Group Headquarters. OCT would hold a stake of 30% in the
joint venture while the Company would hold 70%. Up to the disclosure date of this report, the joint
venture has been established and is going through relevant formalities.
(II) Progress of the Company’s Kunshan Zhouzhuang Project
After the approval by the 42nd meeting of the 6th Board of Directors, the Company obtained the land
use rights of the land in the south of Quanwang Road, Zhouzhuang County, Kunshan. The project
covers an area of 366,575.8 m2 for tourism facilities and commercial housing.
The Company is planned to develop the land by stages and determine the annual development plans
according to market condition. From March, 2013, the first-phrase residential project has been
started for construction and some houses were delivered in 2014. It generated some sales income
and produced profits in 2014. Meanwhile, the second-phrase residential project started in 2014.
III. Commitments made by the Company or any shareholder with a shareholding over 5% in
the reporting period or such commitments made in previous period and carried down into the
reporting period
□ Applicable √ Inapplicable
No such cases in the reporting period.
IV. Predict the operating results of Jan.-Jun. 2015
Warning of possible loss or considerable YoY change of the accumulated net profit made during the
period-begin to the end of the next reporting period according to prediction, as well as explanations
on the reasons:
8
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
□ Applicable √ Inapplicable
V. Securities investments
√ Applicable □ Inapplicable
Gain/lo
Numbe Shareh Numbe Shareh
Initial Closing ss for
Variety Code Name r of olding r of olding
investm book reportin Accoun
of of of shares percent shares percent Source of
ent cost value g ting
securiti securiti securiti held at age at held at age at securities
(RMB (RMB period title
es es es period- period- period- period-
Yuan) Yuan) (RMB
begin begin end end
Yuan)
Availab
Subscript
le-for-s
ion of
Vanke 2,311,7 117,31 117,31 1,621,2 ale
Stock 000002 0.00% 0.00% 0.00 issuing
A 48.07 0 0 24.20 financi
new
al
shares
assets
2,311,7 117,31 117,31 1,621,2
Total -- -- 0.00 -- --
48.07 0 0 24.20
Disclosure date of the board
announcement on securities Inapplicable
investment approval
Disclosure date of the general
meeting announcement on
Inapplicable
securities investment
approval (if any)
VI. Shareholdings in other listed companies
□ Applicable √ Inapplicable
No such cases in the reporting period.
VII. Investments in derivatives
□ Applicable √ Inapplicable
No such cases in the reporting period.
VIII. Researches, visits and interviews received in the reporting period
□ Applicable √ Inapplicable
No such cases in the reporting period.
9
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Konka Group Co., Ltd.
31 Mar. 2015
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,810,044,864.71 1,703,135,732.18
Settlement reserves
Intra-group lendings
Financial assets measured at fair
value of which changes are recorded
in current profits and losses
Derivative financial assets
Notes receivable 3,677,246,015.74 3,819,417,076.37
Accounts receivable 2,211,159,697.58 2,259,293,207.16
Accounts paid in advance 329,599,318.16 315,150,044.57
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 4,129,817.08 1,885,727.36
Dividend receivable
Other accounts receivable 336,356,912.26 298,975,391.68
Financial assets purchased under
agreements to resell
Inventories 3,529,048,169.13 3,904,436,250.33
Assets held for sale
Non-current assets due within 1
year
Other current assets 215,846,771.36 568,020,200.48
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Total current assets 12,113,431,566.02 12,870,313,630.13
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 305,634,224.20 245,033,609.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 363,308,383.66 362,765,183.66
Investing real estate 231,941,634.23 233,349,452.80
Fixed assets 1,774,296,631.84 1,783,695,548.92
Construction in progress 181,895,302.45 159,604,884.09
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 350,402,983.16 347,626,130.58
R&D expense
Goodwill 3,597,657.15 3,597,657.15
Long-term deferred expenses 35,293,732.96 25,792,805.06
Deferred income tax assets 236,217,613.98 259,516,396.26
Other non-current assets 488,063,979.00 488,063,979.00
Total of non-current assets 3,970,652,142.63 3,909,045,646.52
Total assets 16,084,083,708.65 16,779,359,276.65
Current liabilities:
Short-term borrowings 5,000,179,106.52 5,145,712,436.91
Borrowings from Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Financial liabilities measured at
fair value of which changes are
recorded in current profits and losses
Derivative financial liabilities
Notes payable 973,235,070.69 911,355,028.47
Accounts payable 2,713,613,371.11 3,144,408,433.93
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Accounts received in advance 312,570,135.81 302,904,453.86
Financial assets sold for repurchase
Handling charges and commissions
payable
Payroll payable 218,323,182.59 299,272,715.05
Tax payable 42,916,297.98 112,557,005.85
Interest payable 27,949,527.55 22,872,418.43
Dividend payable
Other accounts payable 1,232,326,558.54 1,376,803,381.03
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 within 1
1,212,681.18 1,525,465.53
year
Other current liabilities
Total current liabilities 10,522,325,931.97 11,317,411,339.06
Non-current liabilities:
Long-term borrowings 983,882,578.42 957,541,210.52
Bonds payable
Of which: preferred shares
Perpetual bonds
Long-term payables 30,136,615.38 30,029,990.10
Long-term payroll payables 27,846,234.56 28,554,734.16
Specific payables
Estimated liabilities
Deferred income 152,077,680.03 147,315,999.02
Deferred income tax liabilities 1,049,498.77 1,049,498.77
Other non-current liabilities
Total non-current liabilities 1,194,992,607.16 1,164,491,432.57
Total liabilities 11,717,318,539.13 12,481,902,771.63
Owners’ equity:
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Share capital 1,203,972,704.00 1,203,972,704.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 1,289,403,563.99 1,289,403,563.99
Less: Treasury stock
Other comprehensive income 16,245,222.26 16,171,477.91
Specific reserves
Surplus reserves 847,908,466.28 847,908,466.28
Provisions for general risks
Retained profits 753,775,200.50 746,022,758.89
Total equity attributable to owners of
4,111,305,157.03 4,103,478,971.07
the Company
Minority interests 255,460,012.49 193,977,533.95
Total owners’ equity 4,366,765,169.52 4,297,456,505.02
Total liabilities and owners’ equity 16,084,083,708.65 16,779,359,276.65
Legal representative: Chen Yuehua Person-in-charge of
the accounting work: Huang Zhiqiang
Chief of the accounting division: Xu Youshan
2. Balance sheet of the Company
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 749,444,246.85 993,131,773.08
Financial assets measured at fair
value of which changes are recorded
in current profits and losses
Derivative financial assets
Notes receivable 3,542,855,791.18 3,664,117,423.56
Accounts receivable 1,395,976,908.62 1,539,295,976.29
Accounts paid in advance 307,469,052.71 349,343,179.42
Interest receivable 18,439,721.47 14,450,153.53
Dividend receivable
13
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Other accounts receivable 1,066,473,091.30 988,199,630.05
Inventories 1,933,329,021.85 2,500,537,916.63
Assets held for sale
Non-current assets due within 1
year
Other current assets 120,157,607.39 201,280,204.53
Total current assets 9,134,145,441.37 10,250,356,257.09
Non-current assets:
Available-for-sale financial assets 273,584,224.20 218,983,609.00
Held-to-maturity investments 652,000,000.00 600,000,000.00
Long-term accounts receivable
Long-term equity investment 1,736,174,456.09 1,608,674,456.09
Investing real estate 231,941,634.23 233,349,452.80
Fixed assets 530,001,210.15 534,363,754.80
Construction in progress 35,818,579.88 37,567,861.10
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 80,641,490.03 76,397,532.51
R&D expense
Goodwill
Long-term deferred expenses 23,250,395.49 14,567,206.83
Deferred income tax assets 223,653,709.01 244,080,035.45
Other non-current assets
Total of non-current assets 3,787,065,699.08 3,567,983,908.58
Total assets 12,921,211,140.45 13,818,340,165.67
Current liabilities:
Short-term borrowings 285,766,000.82 244,808,594.52
Financial liabilities measured at
fair value of which changes are
recorded in current profits and losses
Derivative financial liabilities
Notes payable 456,406,863.94 367,803,372.65
Accounts payable 6,550,745,291.38 7,871,208,959.66
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Accounts received in advance 420,878,094.79 190,627,895.21
Payroll payable 107,026,896.18 146,758,331.08
Tax payable 4,612,047.98 5,081,943.95
Interest payable 3,236,763.25 5,406,211.20
Dividend payable
Other accounts payable 1,143,394,094.24 1,103,672,772.19
Liabilities held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 8,972,066,052.58 9,935,368,080.46
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income 83,126,750.64 80,679,738.96
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 83,126,750.64 80,679,738.96
Total liabilities 9,055,192,803.22 10,016,047,819.42
Owners’ equity:
Share capital 1,203,972,704.00 1,203,972,704.00
Other equity instruments
Of which: preferred shares
Perpetual bonds
Capital reserves 1,250,283,488.79 1,250,283,488.79
Less: Treasury stock
Other comprehensive income 464,788.91 471,827.51
Specific reserves
15
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Surplus reserves 847,908,466.28 847,908,466.28
Retained profits 563,388,889.25 499,655,859.67
Total owners’ equity 3,866,018,337.23 3,802,292,346.25
Total liabilities and owners’ equity 12,921,211,140.45 13,818,340,165.67
3. Consolidated income statement
Unit: RMB Yuan
Item Jan.-Mar. 2015 Jan.-Mar. 2014
I. Total operating revenues 4,569,152,230.30 4,049,737,785.15
Including: Sales income 4,569,152,230.30 4,049,737,785.15
Interest income
Premium income
Handling charge and commission income
II. Total operating costs 4,578,328,053.63 4,063,464,797.95
Including: Cost of sales 3,861,908,737.54 3,314,296,879.16
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 13,913,541.44 13,476,912.89
Selling and distribution expenses 479,744,466.36 530,426,324.73
Administrative expenses 146,226,312.63 153,450,740.64
Financial expenses 76,551,299.57 56,996,063.54
Asset impairment loss -16,303.91 -5,182,123.01
Add: Gain/(loss) from change in fair value (“-” means
loss)
Gain/(loss) from investment (“-” means loss) 2,877,685.83 2,174,273.27
Including: share of profits in associates and joint
543,200.00 2,174,273.27
ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) -6,298,137.50 -11,552,739.53
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Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Add: non-operating income 39,220,480.97 36,198,775.51
Including: Gains on disposal of non-current
assets
Less: non-operating expense 1,158,584.02 1,583,788.49
Including: Losses on disposal of non-current
598,558.94 950,183.34
assets
IV. Total profit (“-” means loss) 31,763,759.45 23,062,247.49
Less: Income tax expense 27,370,944.43 12,737,179.94
V. Net profit (“-” means loss) 4,392,815.02 10,325,067.55
Net profit attributable to owners of the Company 7,752,441.61 9,522,762.31
Minority shareholders’ income -3,359,626.59 802,305.24
VI. After-tax net amount of other comprehensive
403,940.87 -2,017,338.63
incomes
After-tax net amount of other comprehensive
73,744.35 -1,443,336.33
incomes attributable to owners of the Company
(I) Other comprehensive incomes that will not be
0.00 0.00
reclassified into gains and losses
1. Changes in net liabilities or assets with a
0.00 0.00
defined benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive
incomes in investees that cannot be reclassified into 0.00 0.00
gains and losses under the equity method
(II) Other comprehensive incomes that will be
73,744.35 -1,443,336.33
reclassified into gains and losses
1. Enjoyable shares in other comprehensive
incomes in investees that will be reclassified into gains 0.00 0.00
and losses under the equity method
2. Gains and losses on fair value changes of
-7,038.61 5,278.95
available-for-sale financial assets
3. Gains and losses on reclassifying
held-to-maturity investments into available-for-sale 0.00 0.00
financial assets
4. Effective hedging gains and losses on cash
0.00 0.00
flows
5. Foreign-currency financial statement
80,782.96 -1,448,615.28
translation difference
6. Other 0.00 0.00
After-tax net amount of other comprehensive 330,196.52 -574,002.30
17
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
incomes attributable to minority shareholders
VII. Total comprehensive incomes 4,796,755.89 8,307,728.92
Attributable to owners of the Company 7,826,185.96 8,079,425.98
Attributable to minority shareholders -3,029,430.07 228,302.94
VIII. Earnings per share
(I) Basic earnings per share 0.0064 0.0079
(II) Diluted earnings per share 0.0064 0.0079
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, with the corresponding
amount for the same period of last year being RMB 0.
Legal representative: Chen Yuehua Person-in-charge of the
accounting work: Huang Zhiqiang Chief of the accounting division: Xu Youshan
4. Income statement of the Company
Unit: RMB Yuan
Item Jan.-Mar. 2015 Jan.-Mar. 2014
I. Total sales 4,320,013,488.31 4,074,766,293.66
Less: cost of sales 3,822,425,311.86 3,517,553,792.86
Business taxes and surcharges 8,117,551.03 9,019,895.98
Distribution expenses 358,082,362.12 425,866,392.90
Administrative expenses 75,480,708.43 97,900,304.89
Financial costs 1,880,584.76 8,524,359.52
Impairment loss
Add: gain/(loss) from change in fair value (“-” means
loss)
Gain/(loss) from investment (“-” means loss) 1,079,985.14
Including: income form investment on associates and
joint ventures
II. Business profit (“-” means loss) 55,106,955.25 15,901,547.51
Add: non-operating income 29,640,663.70 25,951,845.82
Including: Gains on disposal of non-current assets
Less: non-operating expense 585,916.73 443,862.26
Including: Losses on disposal of non-current assets 492,439.54 53,281.44
III. Total profit (“-” means loss) 84,161,702.22 41,409,531.07
18
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Less: Income tax expense 20,428,672.64 10,759,011.58
IV. Net profit (“-” means loss) 63,733,029.58 30,650,519.49
V. After-tax net amount of other comprehensive incomes -7,038.61 5,278.95
(I) Other comprehensive incomes that will not be
0.00 0.00
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
0.00 0.00
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes
in investees that cannot be reclassified into gains and 0.00 0.00
losses under the equity method
(II) Other comprehensive incomes that will be
-7,038.61 5,278.95
reclassified into gains and losses
1. Enjoyable shares in other comprehensive incomes
in investees that will be reclassified into gains and losses 0.00 0.00
under the equity method
2. Gains and losses on fair value changes of
-7,038.61 5,278.95
available-for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
0.00 0.00
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows 0.00 0.00
5. Foreign-currency financial statement translation
0.00 0.00
difference
6. Other 0.00 0.00
VI. Total comprehensive incomes 63,725,990.97 30,655,798.44
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB Yuan
Item Jan.-Mar. 2015 Jan.-Mar. 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and
4,304,120,204.92 4,228,168,316.46
rendering of service
Net increase of deposits from customers and dues
from banks
Net increase of loans from the central bank
19
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
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 financial assets measured
at fair value of which changes are recorded into current
gains and losses
Cash received from interest, handling charges and
commissions
Net increase of intra-group borrowings
Net increase of funds in repurchase business
Tax refunds received 122,737,100.94 133,591,444.76
Other cash received relating to operating activities 92,724,628.19 67,080,392.97
Subtotal of cash inflows from operating activities 4,519,581,934.05 4,428,840,154.19
Cash paid for goods and services 3,322,914,131.71 2,484,241,440.37
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 487,672,449.52 483,492,822.28
Various taxes paid 155,040,386.50 210,931,969.79
Other cash payment relating to operating activities 276,593,316.95 315,115,729.93
Subtotal of cash outflows from operating activities 4,242,220,284.68 3,493,781,962.37
Net cash flows from operating activities 277,361,649.37 935,058,191.82
II. Cash flows from investing activities:
Cash received from withdrawal of investments 20,170,536.85 13,879,620.00
Cash received from return on investments 7,595,434.93
Net cash received from disposal of fixed assets,
180,987.50 304,708.58
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or
20
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
other business units
Other cash received relating to investing activities 550,500,000.00
Subtotal of cash inflows from investing activities 578,446,959.28 14,184,328.58
Cash paid to acquire fixed assets, intangible assets
73,752,961.97 554,763,873.92
and other long-term assets
Cash paid for investment 60,610,000.00
Net increase of pledged loans
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing activities 550,150,000.00 183,497.35
Subtotal of cash outflows from investing activities 684,512,961.97 554,947,371.27
Net cash flows from investing activities -106,066,002.69 -540,763,042.69
III. Cash Flows from Financing Activities:
Cash received from capital contributions 69,408,631.07
Including: Cash received from minority
69,408,631.07
shareholder investments by subsidiaries
Cash received from borrowings 1,325,704,590.05 1,249,214,976.99
Cash received from issuance of bonds
Other cash received relating to financing activities 118,098,914.34 471.75
Subtotal of cash inflows from financing activities 1,513,212,135.46 1,249,215,448.74
Repayment of borrowings 1,404,925,078.41 448,563,365.07
Cash paid for interest expenses and distribution of
40,634,577.65 9,784,990.71
dividends or profit
Including: dividends or profit paid by subsidiaries
to minority shareholders
Other cash payments relating to financing
121,682,102.37 959,134.76
activities
Sub-total of cash outflows from financing activities 1,567,241,758.43 459,307,490.54
Net cash flows from financing activities -54,029,622.97 789,907,958.20
IV. Effect of foreign exchange rate changes on cash
-37,073,373.72 15,165,240.87
and cash equivalents
V. Net increase in cash and cash equivalents 80,192,649.99 1,199,368,348.20
Add: Opening balance of cash and cash
1,640,236,837.08 1,771,489,421.21
equivalents
VI. Closing balance of cash and cash equivalents 1,720,429,487.07 2,970,857,769.41
21
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
6. Cash flow statement of the Company
Unit: RMB Yuan
Item Jan.-Mar. 2015 Jan.-Mar. 2014
I. Cash flows from operating activities:
Cash received from sale of commodities and
3,718,414,073.90 3,384,948,009.22
rendering of service
Tax refunds received 42,946,819.67 70,970,465.76
Other cash received relating to operating activities 214,398,614.69 39,210,508.85
Subtotal of cash inflows from operating activities 3,975,759,508.26 3,495,128,983.83
Cash paid for goods and services 3,285,785,906.80 1,744,797,235.10
Cash paid to and for employees 269,023,634.05 275,654,888.89
Various taxes paid 67,107,627.22 108,228,753.26
Other cash payment relating to operating activities 361,524,255.40 367,470,718.52
Subtotal of cash outflows from operating activities 3,983,441,423.47 2,496,151,595.77
Net cash flows from operating activities -7,681,915.21 998,977,388.06
II. Cash flows from investing activities:
Cash received from retraction of investments 5,278,509.85 13,879,620.00
Cash received from return on investments 11,517,815.40 2,400,000.00
Net cash received from disposal of fixed assets,
101,987.50 101,208.58
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or
other business units
Other cash received relating to investing activities 570,000,000.00
Subtotal of cash inflows from investing activities 586,898,312.75 16,380,828.58
Cash paid to acquire fixed assets, intangible assets
14,014,990.30 506,239,295.60
and other long-term assets
Cash paid for investment 182,610,000.00
Net cash paid to acquire subsidiaries and other
business units
Other cash payments relating to investing
622,000,000.00 40,000,000.00
activities
Subtotal of cash outflows from investing activities 818,624,990.30 546,239,295.60
Net cash flows from investing activities -231,726,677.55 -529,858,467.02
III. Cash Flows from Financing Activities:
Cash received from capital contributions
22
Report for the First Quarter of 2015 of Konka Group Co., Ltd.
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing
118,098,914.34 0
activities
Subtotal of cash inflows from financing activities 118,098,914.34 0
Repayment of borrowings
Cash paid for interest expenses and distribution
of dividends or profit
Other cash payments relating to financing
119,643,450.94 524.85
activities
Sub-total of cash outflows from financing activities 119,643,450.94 524.85
Net cash flows from financing activities -1,544,536.60 -524.85
IV. Effect of foreign exchange rate changes on cash
-2,734,551.47 2,858,928.22
and cash equivalents
V. Net increase in cash and cash equivalents -243,687,680.83 471,977,324.41
Add: Opening balance of cash and cash
991,459,790.62 1,117,689,643.16
equivalents
VI. Closing balance of cash and cash equivalents 747,772,109.79 1,589,666,967.57
II. Auditor’s report
Is this report audited?
□ Yes √ No
This report is not audited.
Konka Group Co., Ltd.
Board of Directors
29 Apr. 2015
23
