Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Konka Group Co., Ltd.
Report for the First Quarter of 2016
2016-34
April 2016
1
Report for the First Quarter of 2016 of 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.
2
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
6
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.
10
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Konka Group Co., Ltd.
31 March 2016
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,868,089,544.02 1,706,446,928.92
Settlement reserves
Lendings to banks and other
financial institutions
Financial assets measured at fair
value with fair value changes
2,044,570.72 33,196,377.28
included in the profit and loss for the
Reporting Period
Derivative financial assets
Notes receivable 2,803,294,515.08 2,880,860,750.44
Accounts receivable 2,112,904,717.32 2,048,813,439.34
Accounts paid in advance 338,343,688.28 193,664,620.66
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 805,540.44 7,426,409.52
Dividends receivable 10,706,957.35
Other accounts receivable 106,406,355.67 160,165,779.82
Financial assets purchased under
agreement to resell
Inventories 2,717,210,325.18 2,882,515,913.28
Assets held for sale
Non-current assets due within one
year
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Other current assets 121,608,677.51 647,311,938.45
Total current assets 10,081,414,891.57 10,560,402,157.71
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 311,966,097.66 311,974,282.66
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 270,696,117.17 190,573,524.29
Investment property 226,310,359.96 227,718,178.53
Fixed assets 1,630,135,610.88 1,763,503,189.50
Construction in progress 166,010,987.36 207,854,180.88
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 303,127,532.56 352,591,887.48
R&D expense
Goodwill 3,597,657.15 3,597,657.15
Long-term deferred expenses 77,548,422.79 82,846,982.07
Deferred income tax assets 539,378,811.21 549,305,508.01
Other non-current assets
Total non-current assets 3,528,771,596.74 3,689,965,390.57
Total assets 13,610,186,488.31 14,250,367,548.28
Current liabilities:
Short-term borrowings 3,596,392,076.42 4,150,773,195.76
Borrowings from the Central Bank
Money deposits accepted and
inter-bank deposits
Loans from banks and other
financial institutions
Financial liabilities measured at
fair value with fair value changes
17,330,522.15
included in the profit and loss for the
Reporting Period
Derivative financial liabilities
Notes payable 1,592,826,068.25 929,176,857.06
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Accounts payable 2,373,290,086.96 2,980,416,983.25
Accounts received in advance 488,485,969.23 349,784,807.32
Financial assets sold for repurchase
Handling charges and commissions
payable
Payroll payable 209,967,816.03 279,631,258.71
Taxes and fares payable 108,291,042.16 92,097,951.90
Interest payable 19,879,726.55 20,552,763.14
Dividends payable
Other accounts payable 1,760,818,005.02 1,550,931,573.35
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
257,460,261.07 573,398,959.65
one year
Other current liabilities
Total current liabilities 10,424,741,573.84 10,926,764,350.14
Non-current liabilities:
Long-term borrowings 23,700,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable 30,133,333.37 30,133,333.37
Long-term payroll payable 22,145,514.42 23,435,856.86
Special payables
Estimated liabilities 4,629,554.61 4,629,554.61
Deferred income 146,936,143.12 162,786,004.20
Deferred income tax liabilities 2,737,710.64 3,468,031.97
Other non-current liabilities
Total non-current liabilities 206,582,256.16 248,152,781.01
Total liabilities 10,631,323,830.00 11,174,917,131.15
Owners’ equity:
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 78,209,535.19 78,209,535.19
Less: Treasury stock
Other composite income 3,779,702.73 3,155,744.00
Special reserves
Surplus reserves 847,908,466.28 847,908,466.28
Provisions for general risks
Retained profit -514,406,733.00 -522,836,282.66
Total equity attributable to owners of
2,823,436,379.20 2,814,382,870.81
the Company
Minority interests 155,426,279.11 261,067,546.32
Total owners’ equity 2,978,862,658.31 3,075,450,417.13
Total liabilities and owners’ equity 13,610,186,488.31 14,250,367,548.28
Legal representative: Liu Fengxi Person-in-charge of the accounting work: Xiao Qing
Chief of the accounting division: Xu Youshan
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current Assets:
Monetary funds 754,411,345.67 502,899,530.83
Financial assets measured at fair
value with fair value changes
2,044,570.72 7,184,035.29
included in the profit and loss for the
Reporting Period
Derivative financial assets
Notes receivable 2,553,298,534.06 2,635,643,772.62
Accounts receivable 1,629,253,656.26 1,417,915,276.56
Accounts paid in advance 490,113,729.75 372,509,871.77
Interest receivable 4,109,915.45 14,901,123.48
Dividends receivable
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Other accounts receivable 1,075,767,032.07 938,447,798.08
Inventories 1,777,982,029.54 1,771,302,947.50
Assets held for sale
Non-current assets due within one
year
Other current assets 83,161,470.67 530,272,796.83
Total current assets 8,370,142,284.19 8,191,077,152.96
Non-current assets:
Available-for-sale financial assets 271,916,097.66 271,924,282.66
Held-to-maturity investments 300,000,000.00 352,000,000.00
Long-term accounts receivable
Long-term equity investments 1,627,810,176.91 1,621,195,118.22
Investment property 226,310,359.96 227,718,178.53
Fixed assets 507,848,055.38 512,933,612.51
Construction in progress 12,826,818.24 12,619,010.21
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 86,989,350.36 88,336,594.02
R&D expense
Goodwill
Long-term deferred expenses 55,353,011.68 57,865,790.98
Deferred income tax assets 499,074,051.01 504,252,794.29
Other non-current assets
Total non-current assets 3,588,127,921.20 3,648,845,381.42
Total assets 11,958,270,205.39 11,839,922,534.38
Current liabilities:
Short-term borrowings 1,951,820,915.75 1,022,612,362.58
Financial liabilities measured at
fair value with fair value changes
12,790,421.26
included in the profit and loss for the
Reporting Period
Derivative financial liabilities
Notes payable 1,116,026,125.08 377,002,860.08
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Accounts payable 3,443,966,344.64 5,173,897,087.35
Accounts received in advance 233,953,804.38 251,204,710.89
Payroll payable 104,134,094.00 118,684,992.99
Taxes and fares payable 33,084,018.49 31,360,675.68
Interest payable 9,524,472.29 7,761,519.53
Dividends payable
Other accounts payable 1,856,399,366.13 1,667,884,936.14
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 8,761,699,562.02 8,650,409,145.24
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Special payables
Estimated liabilities 4,629,554.61 4,629,554.61
Deferred income 85,146,963.84 88,668,785.51
Deferred income tax liabilities 1,802,358.02 1,935,167.63
Other non-current liabilities
Total non-current liabilities 91,578,876.47 95,233,507.75
Total liabilities 8,853,278,438.49 8,745,642,652.99
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserves 46,505,607.34 46,505,607.34
Less: Treasury stock
Other composite income 1,801,377.77 1,803,252.77
Special reserves
16
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Surplus reserves 847,908,466.28 847,908,466.28
Retained profit -199,169,092.49 -209,882,853.00
Total owners’ equity 3,104,991,766.90 3,094,279,881.39
Total liabilities and owners’ equity 11,958,270,205.39 11,839,922,534.38
3. Consolidated income statement
Unit: RMB
Item January-March 2016 January-March 2015
1. Operating revenues 4,072,311,262.92 4,569,152,230.30
Including: Sales income 4,072,311,262.92 4,569,152,230.30
Interest income
Premium income
Handling charge and
commission income
2. Total operating costs 4,087,027,057.79 4,578,328,053.63
Including: Cost of sales 3,295,207,195.04 3,861,908,737.54
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount provided as
insurance contract reserves
Expenditure on policy
dividends
Reinsurance premium
Business tax and surtaxes 30,983,026.43 13,913,541.44
Selling expenses 581,981,228.20 479,744,466.36
Administrative expenses 128,846,125.87 146,226,312.63
Financial costs 49,908,929.45 76,551,299.57
Asset impairment loss 100,552.80 -16,303.91
Add: Profit/loss on fair value changes
-48,325,831.76
(“-” means loss)
Profit/loss on investment (“-”
-1,304,925.71 2,877,685.83
means loss)
Including: Share of profit in
-4,870,387.27 543,200.00
associates and joint ventures
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Foreign exchange profit (“-”
means loss)
3. Operating profit (“-” means loss) -64,346,552.34 -6,298,137.50
Add: Non-operating income 95,656,195.94 39,220,480.97
Including: Profit on disposal of
non-current assets
Less: Non-operating expense 1,657,321.74 1,158,584.02
Including: Loss on disposal of
435,798.87 598,558.94
non-current assets
4. Total profit (“-” means loss) 29,652,321.86 31,763,759.45
Less: Corporate income tax 15,988,231.88 27,370,944.43
5. Net profit (“-” means loss) 13,664,089.98 4,392,815.02
Net profit attributable to owners
8,429,549.66 7,752,441.61
of the Company
Minority shareholders’ income 5,234,540.32 -3,359,626.59
6. After-tax net amount of other
475,840.930 403,940.870
composite income
After-tax net amount of other
composite income attributable to 623,958.730 73,744.349
owners of the Company
6.1 Other composite income
that will not be reclassified into profit
and loss
6.1.1 Changes in net
liabilities or assets with a defined
benefit plan upon re-measurement
6.1.2 Enjoyable share in
other comprehensive income in
investees that cannot be reclassified
into profit and loss under the equity
method
6.2 Other composite income
that will be reclassified into profit and 623,958.730 73,744.349
loss
6.2.1 Enjoyable share in
other composite income in investees
that will be reclassified into profit and
loss under the equity method
6.2.2 Profit and loss on fair
value changes of available-for-sale -1,875.000 -7,038.610
financial assets
6.2.3 Profit and loss on
18
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective hedging profit
and loss on cash flow
6.2.5 Foreign-currency
financial statement translation 625,833.730 80,782.959
difference
6.2.6 Other
After-tax net amount of other
composite income attributable to -148,117.800 330,196.52
minority shareholders
7. Total composite income 14,139,930.91 4,796,755.89
Attributable to owners of the
9,053,508.39 7,826,185.96
Company
Attributable to minority
5,086,422.52 -3,029,430.07
shareholders
8. Earnings per share
8.1 Basic earnings per share 0.0035 0.0032
8.2 Diluted earnings per share 0.0035 0.0032
Where business mergers under the same control occurred in the Reporting Period, net profit
achieved by the merged parties before the business mergers was RMB0.00, with the corresponding
amount for the same period of last year being RMB0.00.
Legal representative: Liu Fengxi Person-in-charge of the
accounting work: Xiao Qing
Chief of the accounting division: Xu Youshan
4. Income statement of the Company
Unit: RMB
Item January-March 2016 January-March 2015
1. Operating revenues 3,854,840,193.45 4,320,013,488.31
Less: Operating costs 3,347,575,734.55 3,822,425,311.86
Business tax and surtaxes 18,102,003.16 8,117,551.03
Selling expenses 439,392,583.89 358,082,362.12
Administrative expenses 67,824,174.31 75,480,708.43
Financial costs 25,796,188.79 1,880,584.76
Asset impairment loss
19
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Add: profit/loss on fair value
-17,929,885.83
changes (“-” means loss)
Profit/loss on investment (“-”
5,058,973.00 1,079,985.14
means loss)
Including: Income from
investment on associates and joint -1,400,941.31
ventures
2. Operating profit (“-” means loss) -56,721,404.08 55,106,955.25
Add: Non-operating income 72,920,014.47 29,640,663.70
Including: Profit on disposal of
non-current assets
Less: Non-operating expense 438,291.21 585,916.73
Including: Loss on disposal of
17,639.35 492,439.54
non-current assets
3. Total profit (“-” means loss) 15,760,319.18 84,161,702.22
Less: Corporate income tax 5,046,558.67 20,428,672.64
4. Net profit (“-” means loss) 10,713,760.51 63,733,029.58
5. After-tax net amount of other
-1,875.000 -7,038.610
composite income
5.1 Other composite income that
will not be reclassified into profit and
loss
5.1.1 Changes in net liabilities or
assets with a defined benefit plan
upon re-measurement
5.1.2 Enjoyable share in other
composite income in investees that
cannot be reclassified into profit and
loss under the equity method
5.2 Other composite income that
will be reclassified into profit and -1,875.000 -7,038.610
loss
5.2.1 Enjoyable share in other
composite income in investees that
will be reclassified into profit and
loss under the equity method
5.2.2 Profit and loss on fair
value changes of available-for-sale -1,875.000 -7,038.610
financial assets
5.2.3 Profit and loss on
reclassifying held-to-maturity
investments into available-for-sale
20
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
financial assets
5.2.4 Effective hedging profit
and loss on cash flow
5.2.5 Foreign-currency financial
statement translation difference
5.2.6 Other
6. Total composite income 10,711,885.51 63,725,990.97
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item January-March 2016 January-March 2015
1. Operating cash flow:
Cash received from sale of
commodities and rendering of 4,128,537,310.84 4,304,120,204.92
service
Net increase in money deposits
from customers and inter-bank
placements
Net increase in loans from the
Central Bank
Net increase in funds borrowed
from other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from
reinsurance business
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of
financial assets measured at fair
value with fair value changes
included in the profit and loss for the
Reporting Period
Cash received from interest,
handling charges and commissions
Net increase in loans from banks
and other financial institutions
Net increase in funds in
21
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
repurchase business
Tax refunds received 118,489,827.76 122,737,100.94
Other operating cash received 100,254,946.62 92,724,628.19
Subtotal of operating cash inflow 4,347,282,085.22 4,519,581,934.05
Cash paid for goods and services 3,061,319,272.92 3,322,914,131.71
Net increase in loans and advances
to customers
Net increase in funds deposited in
the Central Bank and inter-bank
placements
Cash for paying claims of original
insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 472,208,935.22 487,672,449.52
Taxes and fares paid 236,824,221.56 155,040,386.50
Other cash payment relating to
281,683,913.71 276,593,316.95
operating activities
Subtotal of operating cash outflow 4,052,036,343.41 4,242,220,284.68
Net operating cash flow 295,245,741.81 277,361,649.37
2. Investment cash flow:
Cash received from retraction of
16,140.00 20,170,536.85
investments
Cash received from return on
9,635,784.93 7,595,434.93
investments
Net cash received from disposal of
fixed assets, intangible assets and 112,952.43 180,987.50
other long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
1,020,011,000.00 550,500,000.00
investment activities
Subtotal of investment cash inflow 1,029,775,877.36 578,446,959.28
Cash paid to acquire fixed assets,
intangible assets and other long-term 21,789,341.60 73,752,961.97
assets
Cash paid for investment 10,455.00 60,610,000.00
Net increase in pledged loans
Net cash paid to acquire
22
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
subsidiaries and other business units
Other cash payments relating to
498,374,070.44 550,150,000.00
investment activities
Subtotal of investment cash outflow 520,173,867.04 684,512,961.97
Net investment cash flow 509,602,010.32 -106,066,002.69
3. Financing cash flow:
Cash received from capital
4,900,000.00 69,408,631.07
contributions
Including: Cash received from
minority shareholder investments by 4,900,000.00 69,408,631.07
subsidiaries
Cash received as borrowings 402,000,000.00 1,325,704,590.05
Cash received from issuance of
bonds
Other financing cash received 717,390,962.65 118,098,914.34
Subtotal of financing cash inflow 1,124,290,962.65 1,513,212,135.46
Repayment of borrowings 1,652,225,338.64 1,404,925,078.41
Cash paid for interest expenses
and distribution of dividends or 16,401,232.21 40,634,577.65
profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating to
18,138,337.59 121,682,102.37
financing activities
Sub-total of financing cash outflow 1,686,764,908.44 1,567,241,758.43
Net financing cash flow -562,473,945.79 -54,029,622.97
4. Effect of foreign exchange rate
-3,722,947.81 -37,073,373.72
changes on cash and cash equivalents
5. Net increase in cash and cash
238,650,858.53 80,192,649.99
equivalents
Add: Opening balance of cash
1,488,154,851.35 1,640,236,837.08
and cash equivalents
6. Closing balance of cash and cash
1,726,805,709.88 1,720,429,487.07
equivalents
6. Cash flow statement of the Company
Unit: RMB
Item January-March 2016 January-March 2015
1. Operating cash flow:
Cash received from sale of 3,339,394,183.83 3,718,414,073.90
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Report for the First Quarter of 2016 of Konka Group Co., Ltd.
commodities and rendering of
service
Tax refunds received 77,823,014.80 42,946,819.67
Other operating cash received 189,560,391.00 214,398,614.69
Subtotal of operating cash inflow 3,606,777,589.63 3,975,759,508.26
Cash paid for goods and services 3,160,511,022.15 3,285,785,906.80
Cash paid to and for employees 267,788,226.72 269,023,634.05
Taxes and fares paid 156,747,638.23 67,107,627.22
Other operating cash payments 417,545,747.64 361,524,255.40
Subtotal of operating cash outflow 4,002,592,634.74 3,983,441,423.47
Net operating cash flow -395,815,045.11 -7,681,915.21
2. Investment cash flow:
Cash received from retraction of
5,685.00 5,278,509.85
investments
Cash received from return on
17,509,465.52 11,517,815.40
investments
Net cash received from disposal of
fixed assets, intangible assets and 110,602.00 101,987.50
other long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
1,122,000,000.00 570,000,000.00
investment activities
Subtotal of investment cash inflow 1,139,625,752.52 586,898,312.75
Cash paid to acquire fixed assets,
intangible assets and other long-term 2,400,854.44 14,014,990.30
assets
Cash paid for investment 8,016,000.00 182,610,000.00
Net cash paid to acquire
subsidiaries and other business units
Other investment cash payments 570,030,000.00 622,000,000.00
Subtotal of investment cash outflow 580,446,854.44 818,624,990.30
Net investment cash flow 559,178,898.08 -231,726,677.55
3. Financing cash flow:
Cash received from capital
contributions
Cash received as borrowings 402,000,000.00
Cash received from issuance of
bonds
24
Report for the First Quarter of 2016 of Konka Group Co., Ltd.
Other financing cash received 118,098,914.34
Subtotal of financing cash inflow 402,000,000.00 118,098,914.34
Repayment of borrowings
Cash paid for interest expenses
and distribution of dividends or 2,671,625.00
profit
Other cash payments relating to
310,717,730.59 119,643,450.94
financing activities
Sub-total of financing cash outflow 313,389,355.59 119,643,450.94
Net financing cash flow 88,610,644.41 -1,544,536.60
4. Effect of foreign exchange rate
-462,682.54 -2,734,551.47
changes on cash and cash equivalents
5. Net increase in cash and cash
251,511,814.84 -243,687,680.83
equivalents
Add: Opening balance of cash
478,267,624.53 991,459,790.62
and cash equivalents
6. Closing balance of cash and cash
729,779,439.37 747,772,109.79
equivalents
II Auditor’s report
Is this Report audited?
□ Yes √ No
This Report is not audited.
The Board of Directors
Konka Group Co., Ltd.
28 April 2016
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