Abstract of the Report for the First Quarter of 2016—Konka Group Co., Ltd.
Stock code: 000016, 200016 Stock name: Konka A, Konka B Announcement No.: 2016-33
Konka Group Co., Ltd.
Abstract of the Report for the First Quarter of 2016
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Abstract of the Report for the First Quarter of 2016—Konka Group Co., Ltd.
Section I Important Statements
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.
Liu Fengxi, Company Principal, Xiao Qing, 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.
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Section II Financial Results and Changes in Shareholders
I Financial results
Whether the Company performed any retroactive adjustments to or restatement of its accounting
data due to changes of accounting policies or correction of accounting errors
□ Yes √ No
January-March 2016 January-March 2015 +/-%
Operating revenues (RMB) 4,072,311,262.92 4,569,152,230.30 -10.87%
Net profit attributable to shareholders of
8,429,549.66 7,752,441.61 8.73%
the Company (RMB)
Net profit attributable to shareholders of
the Company after excluding exceptional 27,524,586.04 -214,058.24 12,958.46%
profit and loss (RMB)
Net operating cash flow (RMB) 295,245,741.81 277,361,649.37 6.45%
Basic earnings per share (RMB/share) 0.0035 0.0032 9.38%
Diluted earnings per share (RMB/share) 0.0035 0.0032 9.38%
Weighted average return on equity 0.30% 0.19% 0.11%
31 March 2016 31 December 2015 +/-%
Total assets (RMB) 13,610,186,488.31 14,250,367,548.28 -4.49%
Net assets attributable to shareholders of
2,823,436,379.20 2,814,382,870.81 0.32%
the Company (RMB)
Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2016 Note
Profit/loss on disposal of non-current assets (including offset
-435,798.87
amount of asset impairment provisions)
Government grants charged to the profit/loss for the Reporting
Period (except for the government grants closely related to the
23,139,244.03
business of the Company and given at a fixed quota or amount
in accordance with the State’s uniform standards)
Profit/loss on entrusting others with investments or asset
1,502,980.16
management
Profit/loss on fair value changes of transactional financial
assets and liabilities & investment profit on disposal of -46,971,128.14
transactional financial assets and liabilities as well as financial
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
assets available for sale, except for effectively hedging business
related to normal business operations of the Company
Non-operating income and expense other than the above 8,893,359.79
Less: Income tax effects 1,873,314.30
Minority interests effects (after tax) 3,350,379.05
Total -19,095,036.38 --
Explanation of why the Company classified an item as exceptional profit/loss according to the
definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies
Offering Their Securities to the Public—Exceptional Profit and Loss, or reclassified any exceptional
profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss
√ Applicable□ Not applicable
Item Amount (RMB) Reason
Government grants closely related to the Company’s normal
Tax rebates on software 62,402,069.25 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 ten shareholders
1. Numbers of common shareholders and preference shareholders with resumed voting rights
as well as shareholdings of top ten shareholders
Unit: share
Total number of preference
Total number of common shareholders with resumed
162,563 0
shareholders at the period-end voting rights at the
period-end (if any)
Shareholdings of top ten shareholders
Sharehol Pledged or frozen shares
Nature of Number of
ding Number of
Name of shareholder shareholde restricted Number of
percentag shares held Status of shares
r shares held shares
e (%)
State-owne Pledged 0
OCT ENTERPRISES CO. d 21.75% 523,746,932 0
corporation Frozen 0
CITIC SECURITIES Pledged 0
Foreign
BROKERAG (HK) CO., 7.48% 180,001,110 0
corporation Frozen 0
LIMITED
HOLY TIME GROUP Foreign Pledged 0
2.32% 55,841,024 0
LIMITED corporation Frozen 0
GUOYUAN Foreign 2.32% 55,745,009 0 Pledged 0
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
SECURITIES corporation
BROKERAG (HK) CO., Frozen 0
LIMITED
Foreign Pledged 0
GAOLING FUND, L.P. 2.19% 52,801,250 0
corporation Frozen 0
CMS (HK) CO., State-owne Pledged 0
d 1.05% 25,233,816 0
LIMITED Frozen 0
corporation
Foreign Pledged 0
NAM NGAI 0.97% 23,335,040 0
individual Frozen 0
CSI CAPITAL Pledged 0
Foreign
MANAGEMENT 0.83% 20,050,928 0
corporation Frozen 0
LIMITED
BOCI SECURITIES Foreign Pledged 0
0.79% 18,983,092 0
LIMITED individual Frozen 0
ZHONGRONG Pledged 0
INTERNATIONAL
TRUST CO., LTD. －
ZHONGRONG －
RONGHUI DIANJIN
Other 0.69% 16,672,972 0
NO. 18 STRUCTURED Frozen 0
SECURITIES
INVESTMENT
ASSEMBLED FUNDS
TRUST PLAN
Shareholdings of top ten non-restricted shareholders
Number of non-restricted Variety of shares
Name of shareholder
shares held Variety Number
RMB common
OCT ENTERPRISES CO. 523,746,932 523,746,932
shares
Domestically
CITIC SECURITIES BROKERAG (HK) CO., LIMITED 180,001,110 listed foreign 180,001,110
shares
Domestically
HOLY TIME GROUP LIMITED 55,841,024 listed foreign 55,841,024
shares
Domestically
GUOYUAN SECURITIES BROKERAG (HK) CO.,
55,745,009 listed foreign 55,745,009
LIMITED
shares
GAOLING FUND,L.P. 52,801,250 Domestically 52,801,250
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
listed foreign
shares
Domestically
CMS (HK) CO., LIMITED 25,233,816 listed foreign 25,233,816
shares
Domestically
NAM NGAI 23,335,040 listed foreign 23,335,040
shares
Domestically
CSI CAPITAL MANAGEMENT LIMITED 20,050,928 listed foreign 20,050,928
shares
Domestically
BOCI SECURITIES LIMITED 18,983,092 listed foreign 18,983,092
shares
ZHONGRONG INTERNATIONAL TRUST CO., LTD.－
ZHONGRONG － RONGHUI DIANJIN NO. 18 RMB common
16,672,972 16,672,972
STRUCTURED SECURITIES INVESTMENT shares
ASSEMBLED FUNDS TRUST PLAN
The wholly owned subsidiary Jialong Investment Co., Ltd. of the first majority
shareholder OVERSEAS CHINESE TOWN ENTERPRISES CO. respectively
hold the common share of the Company of 180,001,110 shares and 18,360,000
Related or acting-in-concert parties among shares through CITIC SECURITIES BROKERAG (HK) CO., LIMITED and
the above shareholders CMS (HK) CO., LIMITED, and Jialong Investment Co., Ltd. and OVERSEAS
CHINESE TOWN ENTERPRISES CO. were persons acting in concert; the
Company does not know whether the other shareholders are related parties and
whether they are acting-in-concert parties.
Top ten common shareholders conducting securities margin
N/A
trading (if any)
Notes: on 2 Mar. 2016, the 396,763,880 shares which subjected to trading moratorium held by the
major shareholder-OCT Enterprises Co. of the Company was formally relieved the restriction with
the details please refer to http://www.cninfo.com.cn/finalpage/2016-02-27/1202003527.PDF.
Did any of the top ten common shareholders or the top ten 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 preference shareholders and shareholdings of the top ten of them
□ Applicable √ Not applicable
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Section III Significant Events
I Changes in major accounting statement items and financial indicators for the Reporting
Period, as well as reasons for such changes
√ Applicable □ Not applicable
(I) In the Reporting Period, we accelerated our transformation by pushing forward our mechanism
reform and focusing on improvement of our basic capabilities through the whole chain (planning,
manufacturing, R&D, supply, promotion, marketing, after-sales service, etc.). When compared with
the same period of last year, through improving our product structure and operating efficiency, we
managed to considerably increase the gross profit margin of our color TVs sold to the domestic
market, but our operating revenues decreased due to the lower selling prices of our color TVs.
In the Reporting Period, we launched a new high-end series—the V91 OLED Organic TVs,
featuring our whole-new product concept of “Thin, Vivid and Quick” and demonstrating our
ambition to, by technical innovation and resource integration, explore new fields as a color TV
leader as well as create a better audio and visual experience and a new experience with smart TVs
for our color TV consumers. Meanwhile, we continued to improve our user operation, enhanced our
cooperation with leading video service providers such as Tencent and iQIYI, and carried out a
project for our Internet operation system.
(II) Changes in financial results
Unit: RMB’0,000
31 December
31 March 2016/
2015/
Item January-March +/- +/-% Main reason for change
January-March
2016
2015
Other
current 12,160.87 64,731.19 -52,570.33 -81.21 Financial products became due.
assets
Shenzhen Konka Precision Mold Manufacturing Co.,
Long-term
Ltd. and its subsidiaries were excluded from the scope
equity
27,069.61 19,057.35 8,012.26 42.04 of our consolidated financial statements and recognized
investment
as a long-term equity investment measured at the equity
s
method.
Financial
4,990.89 7,655.13 -2,664.24 -34.80 Exchange loss decreased.
costs
Profit on The current period saw fair value changes in our DF
fair value -4,832.58 0.00 -4,832.58 N/A business while there was no such business in the same
changes period of last year.
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
II Progress of significant events and analysis & explanations on their influence and solutions
√ Applicable □ Not applicable
1. Progress on the project of city renewal in the plant area of our Headquarters
So far, the planning and advisory agency for the project has been found through bidding invitation.
Land leveling and other preparations are now proceeding.
2. Progress on our Kunshan Zhouzhuang project
The Phase I and II (residential) of our Kunshan Zhouzhuang project have been completed and
largely sold. The Phase III is currently under construction.
3. Progress on our private issue
On 17 March 2016, trading of our stock was halted due to our planning of a private issue. On 12
April 2016, the 14th Meeting of the 8th Board of Directors and the Ninth Meeting of the Eighth
Supervisory Committee were convened, at which the Proposal on Preliminary Plan for Private Issue
of A-shares and other relevant proposal were considered and approved. Upon our application to the
Shenzhen Stock Exchange, trading of our stock started again from 13 April 2016.
Our plan for this private issue still awaits the approval of the State-owned Assets Supervision and
Administration Commission of the State Council, the General Meeting of the Company and the
China Securities Regulatory Commission before implementation. Investors are kindly reminded to
pay attention to possible investment risks.
For more details about this private issue, please refer to our announcements disclosed on
http://www.cninfo.com.cn.
III Commitments of the Company, its shareholders, actual controller, acquirer, directors,
supervisors, senior management or other related parties fulfilled in the Reporting Period or
ongoing at the period-end
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating result forecast for January-June 2016
Forecast of a possible deficit or considerable YoY change in the accumulative net profit made
during the period from the beginning of the year to the end of the next reporting period, as well as
explanation of why:
□Applicable √ Not applicable
V Securities investments
√ Applicable □ Not applicable
Initial
Variety Code of Name Numbe Shareh Numbe Shareh Closing Gain/lo Accoun Source
investm
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
of securiti of ent cost r of olding r of olding book ss for ting of
securiti es securiti (RMB) shares percent shares percent value reportin title securiti
es es held at age at held at age at (RMB) g es
period- period- period- period- period
begin begin end end (RMB)
Additio
Availab
nally
le-for-s
Vanke 2,311,7 2,865,8 issued
Stock 000002 117,310 0% 117,310 0% 0 ale
A 48.07 83.3 shares
financia
subscri
l assets
bed
Availab
Huayua New
le-for-s
n 5,685.0 15,380. shares
Stock 002787 500 0% 0 0% 0 ale
Packagi 0 40 subscri
financia
ng bed
l assets
Availab
New
le-for-s
10,455. 29,323. shares
Stock 300500 CSIAD 500 0% 0 0% 0 ale
00 22 subscri
financia
bed
l assets
Other security investment
0 0 -- 0 -- 0 0 -- --
held at period-end
2,327,8 2,865,8 44,703.
Total 118,310 -- 117,310 -- -- --
88.07 83.3 62
Disclosure date of the board
announcement on securities N/A
investment approval
Disclosure date of the general
meeting announcement on
N/A
securities investment approval
(if any)
VI Investments in derivative financial instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Visits paid to the Company in the Reporting Period for purposes of research,
communication, interview, etc.
□ Applicable √ Not applicable
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
No such cases in the Reporting Period.
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s funds by the controlling shareholder or its related parties
for non-operating purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
The Board of Directors
Konka Group Co., Ltd.
28 April 2016
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