Konka Group Co., Ltd. First Quarter Report 2017
KONKA GROUP CO., LTD.
FIRST QUARTER REPORT 2017
2017-22
April 2017
1
Konka Group Co., Ltd. First Quarter Report 2017
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, Li Chunlei, Chief of the Accounting Work, and
Feng Junxiu, 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
Konka Group Co., Ltd. First Quarter Report 2017
Section II Profile of the Company
I Key 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 January-March
+/-%
2017 2016
4,686,318,957.3 4,072,311,262.9
Operating revenues (RMB) 15.08%
4 2
Net profit attributable to shareholders of the Company
26,245,353.83 8,429,549.66 211.35%
(RMB)
Net profit attributable to shareholders of the Company
-18,772,884.12 27,524,586.04 -168.20%
before exceptional profit and loss (RMB)
-1,629,437,072.
Net operating cash flow (RMB) 295,245,741.81 -651.89%
94
Basic earnings per share (RMB/share) 0.0109 0.0035 211.43%
Diluted earnings per share (RMB/share) 0.0109 0.0035 211.43%
Weighted average return on equity 0.90% 0.30% 0.60%
March 31, 2017 December 31, 2016 +/-%
18,539,102,991. 17,243,119,597.
Total assets (RMB) 7.52%
75 97
Net assets attributable to shareholders of the Company 2,930,377,224.2 2,901,481,607.0
1.00%
(RMB) 3 4
Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item January-March 2017 Note
Profit/loss on disposal of non-current assets (including offset asset impairment
33,059,453.01
provisions)
Government subsidies charged to the profit/loss for this Reporting Period (except for
the government grants closely related to the business of the Company and given at a 48,128,191.73
fixed quota or amount in accordance with the State’s uniform standards)
Profit/loss on entrusting others with investments or asset management 28,220,131.51
Profit/loss on fair value changes of transactional financial assets and liabilities & -53,257,727.64
3
Konka Group Co., Ltd. First Quarter Report 2017
investment income from disposal of transactional financial assets and liabilities as
well as financial assets available for sale, except for effective hedges related to
routine operations of the Company
Non-operating income and expense other than the above 6,863,175.27
Less: Corporate income tax effects 17,593,437.26
Minority interests effects (after tax) 401,548.67
Total 45,018,237.95 --
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 24,447,136.81 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 common
Total number of preference shareholders with resumed
shareholders at the 126,834 0
voting rights at the period-end (if any)
period-end
Shareholdings of top ten shareholders
Pledged or frozen
Shareholdin
Number of shares
Nature of g Number of
Name of shareholder restricted Numb
shareholder percentage shares held Status of
shares held er of
(%) shares
shares
State-owned
OCT ENTERPRISES CO. 21.75% 523,746,932 0
corporation
CITIC SECURITIES
Foreign
BROKERAG (HK) CO., 7.56% 182,100,202 0
corporation
LIMITED
HOLY TIME GROUP LIMITED Foreign 2.33% 56,049,824 0
4
Konka Group Co., Ltd. First Quarter Report 2017
corporation
GUOYUAN SECURITIES
Foreign
BROKERAGE (HK) CO., 2.32% 55,973,345 0
corporation
LIMITED
Foreign
GAOLING FUND, L.P. 2.19% 52,801,250 0
corporation
NANHUA FUTURES CO.,
LIMITED-NANHUA FUTURES
Other 1.22% 29,446,979 0
NO.5 SILVER LEAF ASSET
MANAGEMENT PLAN
CHINA MERCHANTS State-owned
0.97% 23,246,820 0
SECURITIES (HK) CO., LTD. corporation
Foreign
NAM NGAI 0.94% 22,535,240 0
individual
CSI CAPITAL MANAGEMENT Foreign
0.83% 20,050,928 0
LIMITED corporation
Domestic
MENG DILIANG 0.62% 15,000,083 0
individual
Shareholdings of top ten non-restricted shareholders
Number of Variety of shares
Name of shareholder non-restricted shares
Variety Number
held
RMB common
OCT ENTERPRISES CO. 523,746,932 523,746,932
shares
Domestically
CITIC SECURITIES BROKERAG (HK) CO., LIMITED 182,100,202 listed foreign 182,100,202
shares
Domestically
HOLY TIME GROUP LIMITED 56,049,824 listed foreign 56,049,824
shares
Domestically
GUOYUAN SECURITIES BROKERAGE (HK) CO.,
55,973,345 listed foreign 55,973,345
LIMITED
shares
Domestically
GAOLING FUND,L.P. 52,801,250 listed foreign 52,801,250
shares
NANHUA FUTURES CO., LIMITED-NANHUA FUTURES RMB common
29,446,979 29,446,979
NO.5 SILVER LEAF ASSET MANAGEMENT PLAN shares
Domestically
CHINA MERCHANTS SECURITIES (HK) CO., LTD. 23,246,820 23,246,820
listed foreign
5
Konka Group Co., Ltd. First Quarter Report 2017
shares
Domestically
NAM NGAI 22,535,240 listed foreign 22,535,240
shares
Domestically
CSI CAPITAL MANAGEMENT LIMITED 20,050,928 listed foreign 20,050,928
shares
RMB common
MENG DILIANG 15,000,083 15,000,083
shares
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
Related or acting-in-concert of 180,001,110 shares and 18,360,000 shares through CITIC Securities Brokerage (HK) Co.,
parties among the above Limited and China Merchants Securities (HK) Co., Ltd., and Jialong Investment Co., Ltd. and
shareholders 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 A-share shareholder Meng Diliang holds the share of the Company of 15,000,083 shares
conducting securities margin through the account of customer credit transactions secured securities in Essence Securities Co.,
trading (if any) Limited.
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
Konka Group Co., Ltd. First Quarter Report 2017
Section III Significant Events
I Changes in the key financial results of this Reporting Period, as well as the reasons for such
changes
√ Applicable □ Not applicable
(I) During the Reporting Period, the Company became a top sponsor for the Jiangsu Suning
Football Club, which would infuse new vitality into the Company’s brand by introducing it to more
young people, and at the same time bring about a positive effect on the other cooperation between
the Company and Suning Commerce Group Co., Ltd.
In the period, the Company carried on with its mechanism reform. On March 10, 2017, it finished
hiring new senior executive officers in an open and market-oriented way. Meanwhile, the
market-oriented mechanism reform on business units proceeded smoothly.
In the period, the Company has become more capable in the smart TV business. It not only realized
a considerable year-on-year growth in revenues from both contents provided and advertising service,
but also has strengthened its user loyalty and brand competitiveness. Hardware (end products) is no
longer the only main source for its profit. It can now also rely on software (contents provided for
users) as another main source.
In the period, the Company tried to produce more competitive products through integrating its R&D,
production and supply systems, as well as through improving its product structure. However, due to
the rising costs of raw materials, the gross profit margins of color TVs and white goods saw a drop,
leading to a loss in the main business.
For the period, the exceptional profits and losses had an effect of RMB45.02 million on the net
profit.
(II) Changes in key financial results
Unit: RMB’0,000
December 31,
Item March 31, 2017 Change Change (%) Main reason for change
2016
Transactional Changes in the closing fair value of transactional
19,325.87 25,208.50 -5,882.63 -23.34%
financial assets financial assets
Accounts paid in Increased prepayments for the Company’s
112,026.93 27,481.07 84,545.86 307.65%
advance business
January-March January-March
Item Change Change (%) Main reason for change
2017 2016
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Konka Group Co., Ltd. First Quarter Report 2017
Gains on fair value Fair value changes of the shares of the Refond
-6,933.28 -4,832.58 -2,100.70 -43.47%
changes stock
The idle land of subsidiary Kunshan Konka was
Investment income 3,497.92 -130.49 3,628.41 2780.60%
purchased by the government for reserve
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
According to the Proposal on the Cooperation Development Plan of the Urban Renewal Projects of
the Headquarters Factory of Konka Group which be reviewed and approved by the 2nd
Extraordinary General Meeting held on 8 Dec. 2014 by the Company, the Company and the OCT
Enterprises Co. set up the Shenzhen Kangqiao Jiacheng Real Estate Investment Co., Ltd. by joint
capital, and developed the urban renewal project in the plan area of the Company’s original
headquarters by regarding Shenzhen Kangqiao Jiacheng Real Estate Investment Co., Ltd. as the
main body.
Shenzhen Kangqiao Jiacheng Real Estate Investment Co., Ltd. has worked out the land use
planning and obtained the land use planning permit, approval of energy conservation assessment
report and EIA report. Besides, it has signed the contract for land transfer and paid the first tranche
for land transfer. At present, Shenzhen Kangqiao Jiacheng Real Estate Investment Co., Ltd. is
making an integral design and conducting geological prospecting.
2. Progress on our 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. Recently the residential projects of Phase I and Phase II had both
completed and the majority of the residential sales had finished with the Phase III was still in
progress.
3. Progress on the project of Building Konka Science Innovation Centre
According to the Proposal on the Investment in Building Konka Science Innovation Centre in
Chuzhou which was reviewed and approved by the 24th meeting of the 8th Board of Directors held
on Dec. 29, 2016, the Company increased its investments in Chuzhou Konka Technology Industry
Development Co., Ltd. and invested in the building of Konka Science Innovation Centre in
Chuzhou economic development zone by regarding Chuzhou Konka Technology Industry
Development Co., Ltd. as the main body.
During this Reporting Period, the Company has signed the investment cooperation agreement with
Chuzhou economic development zone management committee and obtained the land use right of
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Konka Group Co., Ltd. First Quarter Report 2017
parcels covering an area of about 68 mu for commercial use in west side of Nanqiao South Road in
Chuzhou City and south side of Chuyang Road through auction. At present Chuzhou Konka
Technology Industry Development Co. Ltd. is making the development plan.
Summary of significant event Date of disclosure Index to disclosed information
The Three-old Renovation Project in
Guankang Plant and Project of
03/11/2017 http://www.cninfo.com.cn
Investment in Building the New Plant in
Dongguan.
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 2017
Forecast of a possible deficit or considerable 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
Shar
Share
ehol
holdi
Vari ding
Number ng Number Gain/loss
ety Code Nam perc Closing Sour
Initial of shares perce of shares for
of of e of enta book Accounti ce of
investment held at ntage held at reporting
secu securit secur ge value ng title secu
cost (RMB) period-be at period-en period
ritie ies ities at (RMB) rities
gin perio d (RMB)
s peri
d-beg
od-e
in
nd
New
Availabl shar
Stoc 30060 HFX e-for-sale es
4671.8 0 0 0 0 0 19929.7
k 5 X financial subs
assets cribe
d
9
Konka Group Co., Ltd. First Quarter Report 2017
New
Availabl shar
Stoc 30061 CHG e-for-sale es
3371.83 0 0 0 0 0 11417.01
k 0 F financial subs
assets cribe
d
New
Availabl shar
Stoc 30060 HN e-for-sale es
3369.8 0 0 0 0 0 22235.7
k 9 KJ financial subs
assets cribe
d
New
Availabl shar
Stoc 00284 GSB e-for-sale es
4417 0 0 0 0 0 21693
k 8 E financial subs
assets cribe
d
New
Availabl shar
Stoc 00284 WX e-for-sale es
3575.68 0 0 0 0 0 15516.32
k 9 ZN financial subs
assets cribe
d
New
Availabl shar
Stoc 30061 ML e-for-sale es
3579.03 0 0 0 0 0 13733.07
k 1 KJ financial subs
assets cribe
d
New
Availabl shar
Stoc 00285 e-for-sale es
KDL 22997 0 0 0 0 0 62204.75
k 0 financial subs
assets cribe
d
New
Availabl shar
Stoc 00285 MG e-for-sale es
4016.1 0 0 0 0 0 22383.9
k 1 MT financial subs
assets cribe
d
10
Konka Group Co., Ltd. First Quarter Report 2017
New
Availabl shar
Stoc 30061 SPZ e-for-sale es
20109.5 0 0 0 0 0 47970.5
k 6 P financial subs
assets cribe
d
New
Availabl shar
Stoc 30061 HRG e-for-sale es
5689.65 0 0 0 0 0 42894.02
k 8 Y financial subs
assets cribe
d
New
Availabl shar
Stoc 00285 DD e-for-sale es
17832.1 0 0 0 0 0 42423.433
k 2 Q financial subs
assets cribe
d
New
Availabl shar
Stoc 30062 GK e-for-sale es
2766.06 0 0 0 0 0 11882.2
k 0 KJ financial subs
assets cribe
d
New
Availabl shar
Stoc 30062 BSY e-for-sale es
1916.85 0 0 195 0 8667.75 0
k 2 J financial subs
assets cribe
d
New
Availabl shar
Stoc 30062 JJW e-for-sale es
5526 0 0 0 0 0 13674
k 3 D financial subs
assets cribe
d
New
Availabl shar
Stoc 30062 WY e-for-sale es
4016.2 0 0 467 0 16489.77 0
k 1 GF financial subs
assets cribe
d
11
Konka Group Co., Ltd. First Quarter Report 2017
New
Availabl shar
Stoc 30062 SXJ e-for-sale es
10885.2 0 0 0 0 0 21996
k 5 G financial subs
assets cribe
d
New
Availabl shar
Stoc 00285 MZ e-for-sale es
3831.3 0 0 330 0 13008.6 0
k 6 GF financial subs
assets cribe
d
New
Availabl shar
Stoc 00285 e-for-sale es
JRJS 3256.92 0 0 498 0 10059.6 0
k 5 financial subs
assets cribe
d
New
Availabl shar
Stoc 30062 HRG e-for-sale es
2362.5 0 0 315 0 8026.2 0
k 6 F financial subs
assets cribe
d
New
Availabl shar
Stoc 30062 HCD e-for-sale es
2949.87 0 0 231 0 9106.02 0
k 7 H financial subs
assets cribe
d
New
Availabl shar
Stoc 30063 PLZ e-for-sale es
4389.18 0 0 382 0 8415.46 0
k 0 Y financial subs
assets cribe
d
New
Availabl shar
Stoc 00277 KY e-for-sale es
5124 0 0 840 0 11886 0
k 4 DT financial subs
assets cribe
d
12
Konka Group Co., Ltd. First Quarter Report 2017
New
Availabl shar
Stoc 00285 JMK e-for-sale es
6798.96 0 0 228 0 6798.96 0
k 9 J financial subs
assets cribe
d
New
Availabl shar
Stoc 30063 DA e-for-sale es
3605.49 0 0 291 0 5191.44 0
k 5 GF financial subs
assets cribe
d
New
Availabl
shar
e-for-sal
Stoc 30063 GPG es
2549.55 0 0 345 0 2549.55 0 e
k 2 F subs
financial
cribe
assets
d
Trading
Stoc 30024 RFG 232,711,95 13,155,0 4.76 13,155,0 4.76 176,540,1 -35,650,05
financial
k 1 D 0.00 00 % 00 % 00 0
assets
Other security
investment held at 0 0 -- 0 -- 0 0 -- --
period-end
232,865,55 13,155,0 13,159,1 176,640,2 -35,280,09
Total -- -- -- --
7.57 00 22 99.35 6.40
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
Unit: RMB’0,000
Source of investment funds USD financing
Lawsuit (if applicable) N/A
Disclosure date of the
announcement about the board’s 05/24/2014
consent for the investment
Disclosure date of the
06/10/2014
announcement about the general
13
Konka Group Co., Ltd. First Quarter Report 2017
meeting’s consent for the
investment
We engage in forward forex transactions to reduce the currency risk when securing
foreign-currency financing. This is very needed in our routine operation and is in
compliance with the applicable laws and regulations. We have formulated the
Risk analysis and risk control
Management Rules of Konka Group Co., Ltd. for Investment In Derivative Financial
measures for positions held in
Instruments, making clear the relevant consideration and approval procedure, risk control,
derivatives in the Reporting Period
etc.. We always sign forward forex contracts with large banks such as the Bank of China,
which operate steadily and have good credit standing, which could help prevent loss on
forward forex contracts due to bank failure.
How we usually measure the fair value of derivative financial instruments: Based on the
Changes in market price or fair
forward forex sales and purchase contracts that are signed between the Company and
value of derivatives invested in the
banks and have not expired in a Reporting Period, we recognize the differences between
Reporting Period (specific methods
the quotations for these contracts on the balance sheet dates provided by the banks and the
used and relevant assumption and
contractual prices as transactional financial assets or liabilities, and the profit/loss on fair
parameter settings shall be
value changes is recognized accordingly. Because these contracts have locked in exchange
disclosed for analysis of fair value
rates, no changes will occur when comparing the fair value on signing dates with that on
of derivatives)
delivery dates.
Significant changes in the
Company’s accounting policies and
specific accounting principles for N/A
derivatives in the Reporting Period
as compared to the prior period
It is considered necessary for the Company to lock in foreign-currency financing costs
Special opinions expressed by
through financial instruments, because it could effectively reduce the currency risk when
independent directors concerning
securing foreign-currency financing. The Company has formulated the internal control
the Company’s derivatives
mechanism for investment in derivative financial instruments, and the relevant risk control
investment and risk control
measures that the Company has taken are considered effective.
Unit: RMB’0,000
Type of derivative Opening Closing
Profit/loss in the Closing investment amount as a percentage of
financial contractual contractual
Reporting Period the Company’s closing net assets
instrument amount amount
Forward forex
137,247.18 153,500.38 -1,659.10 52.38%
contract
VII Visits paid to the Company in the Reporting Period for purposes of research,
communication, interview, etc.
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
14
Konka Group Co., Ltd. First Quarter Report 2017
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.
15
Konka Group Co., Ltd. First Quarter Report 2017
Section IV Financial Statements
I Financial statements
1. Consolidated balance sheet
Prepared by Konka Group Co., Ltd.
March 31, 2017
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 2,329,841,813.95 2,617,606,256.42
Settlement reserve
Interbank lendings
Financial assets measured at fair value with fair value changes
193,258,692.37 252,084,994.12
included in the profit and loss for the Reporting Period
Derivative financial assets
Notes receivable 2,793,422,570.38 2,871,633,498.82
Accounts receivable 2,038,181,138.03 2,307,965,548.49
Accounts paid in advance 1,120,269,312.59 274,810,658.72
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable 820,013.85 1,342,063.84
Dividends receivable 10,171,609.48 10,171,609.48
Other accounts receivable 283,647,558.38 222,389,921.80
Financial assets purchased under agreements to resell
Inventories 5,494,420,460.51 4,287,413,944.35
Assets held for sale
Non-current assets due within one year
Other current assets 439,759,267.01 562,204,116.20
Total current assets 14,703,792,436.55 13,407,622,612.24
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 315,008,440.18 314,967,639.36
16
Konka Group Co., Ltd. First Quarter Report 2017
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 313,648,120.37 309,648,120.37
Investment property 220,679,085.69 222,086,904.26
Fixed assets 1,556,678,058.00 1,573,978,914.03
Construction in progress 347,616,910.58 315,536,437.05
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 255,029,607.52 302,045,627.44
R&D expenses
Goodwill 3,597,657.15 3,597,657.15
Long-term deferred expenses 88,824,182.52 91,901,533.39
Deferred tax assets 714,228,493.19 701,734,152.68
Other non-current assets 20,000,000.00
Total non-current assets 3,835,310,555.20 3,835,496,985.73
Total assets 18,539,102,991.75 17,243,119,597.97
Current liabilities:
Short-term borrowings 7,855,946,916.74 6,562,834,226.51
Borrowings from the Central Bank
Money deposits accepted and inter-bank deposits
Interbank borrowings
Financial liabilities measured at fair value with fair value changes
5,720,009.41 337,263.13
included in the profit and loss for the Reporting Period
Derivative financial liabilities
Notes payable 959,618,467.71 863,709,138.39
Accounts payable 2,777,439,129.23 3,160,073,575.56
Accounts received in advance 1,593,377,657.51 1,201,426,223.70
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 201,373,491.43 273,059,516.65
Taxes payable 105,214,729.16 121,905,421.18
Interest payable 17,875,291.84 21,344,172.45
Dividends payable
17
Konka Group Co., Ltd. First Quarter Report 2017
Other accounts payable 1,394,683,434.33 1,444,349,986.74
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of securities
Payables for acting underwriting of securities
Liabilities held for sale
Non-current liabilities due within one year 41,025.60 41,025.60
Other current liabilities
Total current liabilities 14,911,290,152.96 13,649,080,549.91
Non-current liabilities:
Long-term borrowings 70,000,000.00 70,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable 30,102,564.14 30,102,564.14
Long-term payroll payable 16,836,847.08 18,151,659.90
Special payables
Estimated liabilities 7,551,985.10 7,551,985.10
Deferred income 128,221,227.04 130,571,125.42
Deferred tax liabilities 26,610,301.90 19,162,818.83
Other non-current liabilities
Total non-current liabilities 279,322,925.26 275,540,153.39
Total liabilities 15,190,613,078.22 13,924,620,703.30
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 79,723,092.04 79,723,092.04
Less: Treasury shares
Other comprehensive income -4,281,841.29 -6,932,104.65
Special reserve
Surplus reserve 847,908,466.28 847,908,466.28
Provisions for general risks
18
Konka Group Co., Ltd. First Quarter Report 2017
Retained earnings -400,917,900.80 -427,163,254.63
Equity attributable to owners of the Company 2,930,377,224.23 2,901,481,607.04
Minority interests 418,112,689.30 417,017,287.63
Total owners’ equity 3,348,489,913.53 3,318,498,894.67
Total liabilities and owners’ equity 18,539,102,991.75 17,243,119,597.97
Legal representative: Liu Fengxi Accounting head for this Report: Li Chunlei
Head of the accounting department: Feng Junxiu
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 1,191,529,650.54 982,562,273.45
Financial assets measured at fair value with fair value changes
16,153,593.63 39,894,844.12
included in the profit and loss for the Reporting Period
Derivative financial assets
Notes receivable 2,648,160,798.97 2,513,459,083.61
Accounts receivable 1,717,714,673.86 3,145,529,199.35
Accounts paid in advance 942,982,151.59 523,905,219.52
Interest receivable 12,432,279.56 4,502,350.43
Dividends receivable
Other accounts receivable 2,482,317,325.16 1,725,494,161.08
Inventories 2,838,250,836.90 1,926,824,243.11
Assets held for sale
Non-current assets due within one year
Other current assets 346,247,339.25 505,418,961.79
Total current assets 12,195,788,649.46 11,367,590,336.46
Non-current assets:
Available-for-sale financial assets 270,217,639.36 270,217,639.36
Held-to-maturity investments 170,000,000.00 170,000,000.00
Long-term accounts receivable
Long-term equity investments 2,423,970,009.87 2,383,970,009.87
Investment property 220,679,085.69 222,086,904.26
Fixed assets 498,904,455.22 499,826,176.39
Construction in progress 18,414,554.20 11,754,885.34
Engineering materials
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Konka Group Co., Ltd. First Quarter Report 2017
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 89,693,779.27 90,880,022.23
R&D expenses
Goodwill
Long-term deferred expenses 64,787,788.84 66,995,753.17
Deferred tax assets 669,747,746.93 656,704,805.39
Other non-current assets 20,000,000.00
Total non-current assets 4,446,415,059.38 4,372,436,196.01
Total assets 16,642,203,708.84 15,740,026,532.47
Current liabilities:
Short-term borrowings 5,744,550,912.48 5,436,958,840.80
Financial liabilities measured at fair value with fair value changes
5,720,009.41 337,263.13
included in the profit and loss for the Reporting Period
Derivative financial liabilities
Notes payable 1,729,962,097.76 1,454,982,347.31
Accounts payable 3,944,601,090.75 3,710,175,718.31
Accounts received in advance 717,171,976.85 322,402,357.59
Payroll payable 111,223,674.82 131,415,800.19
Taxes payable 9,241,720.10 19,823,949.08
Interest payable 24,405,190.47 23,767,528.97
Dividends payable
Other accounts payable 1,549,442,206.14 1,760,751,455.81
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 13,836,318,878.78 12,860,615,261.19
Non-current liabilities:
Long-term borrowings 40,000,000.00 40,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
20
Konka Group Co., Ltd. First Quarter Report 2017
Special payables
Estimated liabilities 7,551,985.10 7,551,985.10
Deferred income 82,093,048.08 82,166,818.30
Deferred tax liabilities 3,810,512.81 12,026,251.50
Other non-current liabilities
Total non-current liabilities 133,455,545.99 141,745,054.90
Total liabilities 13,969,774,424.77 13,002,360,316.09
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 64,794,108.39 64,794,108.39
Less: Treasury shares
Other comprehensive income 6,714,437.62 6,714,437.62
Special reserve
Surplus reserve 847,908,466.28 847,908,466.28
Retained earnings -654,933,136.22 -589,696,203.91
Total owners’ equity 2,672,429,284.07 2,737,666,216.38
Total liabilities and owners’ equity 16,642,203,708.84 15,740,026,532.47
3. Consolidated income statement
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating revenues 4,686,318,957.34 4,072,311,262.92
Including: Sales income 4,686,318,957.34 4,072,311,262.92
Interest income
Premium income
Fee and commission income
2. Operating costs 4,733,743,173.50 4,087,027,057.79
Including: Cost of sales 4,023,149,407.98 3,295,207,195.04
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
21
Konka Group Co., Ltd. First Quarter Report 2017
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and surtaxes 18,889,210.59 30,983,026.43
Selling expenses 518,071,670.57 581,981,228.20
Administrative expenses 135,856,678.53 128,846,125.87
Finance costs 42,775,464.29 49,908,929.45
Asset impairment loss -4,999,258.46 100,552.80
Add: Profit on fair value changes (“-” means loss) -69,332,778.97 -48,325,831.76
Investment income (“-” means loss) 34,979,227.70 -1,304,925.71
Including: Share of profit/loss of associates and joint ventures -4,870,387.27
Exchange gains (“-” means loss)
3. Operating profit (“-” means loss) -81,777,767.43 -64,346,552.34
Add: Non-operating income 113,572,905.33 95,656,195.94
Including: Profit on disposal of non-current assets
Less: Non-operating expense 767,810.90 1,657,321.74
Including: Loss on disposal of non-current assets 319,760.30 435,798.87
4. Total profit (“-” means loss) 31,027,327.00 29,652,321.86
Less: Corporate income tax 5,067,406.90 15,988,231.88
5. Net profit (“-” means loss) 25,959,920.10 13,664,089.98
Net profit attributable to owners of the Company 26,245,353.83 8,429,549.66
Minority interests’ income -285,433.73 5,234,540.32
6. Other comprehensive income net of tax 2,713,427.50 475,840.93
Other comprehensive income net of tax attributable to owners
2,650,263.36 623,958.73
of the Company
6.1 Other comprehensive income that will not be reclassified
into profit/loss
6.1.1 Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
6.1.2 Share of other comprehensive income of investees
that cannot be reclassified into profit/loss under the equity method
6.2 Other comprehensive income to be subsequently
2,650,263.36 623,958.73
reclassified into profit/loss
6.2.1 Share of other comprehensive income of investees
that will be reclassified into profit/loss under the equity method
6.2.2 Profit/loss on fair value changes of available-for-sale
-1,875.00
financial assets
22
Konka Group Co., Ltd. First Quarter Report 2017
6.2.3 Profit/loss on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective profit/loss on cash flow hedges
6.2.5 Currency translation differences 2,650,263.36 625,833.73
6.2.6 Other
Other comprehensive income net of tax attributable to minority
63,164.14 -148,117.80
interests
7. Total comprehensive income 28,673,347.60 14,139,930.91
Attributable to owners of the Company 28,895,617.19 9,053,508.39
Attributable to minority interests -222,269.59 5,086,422.52
8. Earnings per share
8.1 Basic earnings per share 0.0109 0.0035
8.2 Diluted earnings per share 0.0109 0.0035
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 , with the corresponding
amount for the last period being RMB .
Legal representative: Liu Fengxi Accounting head for this Report: Li Chunlei
Head of the accounting department: Feng Junxiu
4. Income statement of the Company
Unit: RMB
Item January-March 2017 January-March 2016
1. Operating revenues 3,528,146,131.01 3,854,840,193.45
Less: Operating costs 3,096,777,598.35 3,347,575,734.55
Taxes and surtaxes 5,965,647.75 18,102,003.16
Selling expenses 384,384,952.78 439,392,583.89
Administrative expenses 97,836,429.53 67,824,174.31
Finance costs 100,233,983.39 25,796,188.79
Asset impairment loss
Add: profit on fair value changes (“-” means loss) -34,248,996.77 -17,929,885.83
Investment income (“-” means loss) 46,382,940.03 5,058,973.00
Including: Share of profit/loss of associates and joint ventures -1,400,941.31
2. Operating profit (“-” means loss) -144,918,537.53 -56,721,404.08
Add: Non-operating income 58,888,782.88 72,920,014.47
Including: Profit on disposal of non-current assets
Less: Non-operating expense 465,857.89 438,291.21
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Konka Group Co., Ltd. First Quarter Report 2017
Including: Loss on disposal of non-current assets 48,234.28 17,639.35
3. Total profit (“-” means loss) -86,495,612.54 15,760,319.18
Less: Corporate income tax -21,258,680.23 5,046,558.67
4. Net profit (“-” means loss) -65,236,932.31 10,713,760.51
5. Other comprehensive income net of tax -1,875.00
5.1 Other comprehensive 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 Share of other comprehensive income of investees that
cannot be reclassified into profit/loss under the equity method
5.2 Other comprehensive income to be subsequently reclassified
-1,875.00
into profit/loss
5.2.1 Share of other comprehensive income of investees that
will be reclassified into profit/loss under the equity method
5.2.2 Profit/loss on fair value changes of available-for-sale
-1,875.00
financial assets
5.2.3 Profit/loss on reclassifying held-to-maturity investments
into available-for-sale financial assets
5.2.4 Effective profit/loss on cash flow hedges
5.2.5 Currency translation differences
5.2.6 Other
6. Total comprehensive income -65,236,932.31 10,711,885.51
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 2017 January-March 2016
1. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 3,504,876,874.27 4,128,537,310.84
Net increase in money deposits from customers and interbank
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
24
Konka Group Co., Ltd. First Quarter Report 2017
Net increase in disposal of financial assets at fair value through
profit/loss
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax refunds received 102,339,410.87 118,489,827.76
Cash received from other operating activities 118,039,119.57 100,254,946.62
Subtotal of cash inflows from operating activities 3,725,255,404.71 4,347,282,085.22
Cash paid for goods and services 4,440,141,644.59 3,061,319,272.92
Net increase in loans and advances to customers
Net increase in funds deposited in the Central Bank and interbank
placements
Cash paid for claims of original insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
Cash paid to and for employees 458,532,563.30 472,208,935.22
Taxes paid 135,715,221.18 236,824,221.56
Cash paid for other operating activities 320,303,048.58 281,683,913.71
Subtotal of cash outflows due to operating activities 5,354,692,477.65 4,052,036,343.41
Net cash flows from operating activities -1,629,437,072.94 295,245,741.81
2. Cash flows from investing activities:
Cash received from retraction of investments 112,806.75 16,140.00
Cash received as investment income 30,385,376.69 9,635,784.93
Net cash received from disposal of fixed assets, intangible assets
78,346,069.28 112,952.43
and other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Cash received from other investing activities 557,451,449.68 1,020,011,000.00
Subtotal of cash inflows from investing activities 666,295,702.40 1,029,775,877.36
Cash paid to acquire fixed assets, intangible assets and other
73,620,997.55 21,789,341.60
long-term assets
Cash paid for investment 4,157,113.94 10,455.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities 285,575,000.00 498,374,070.44
Subtotal of cash outflows due to investing activities 363,353,111.49 520,173,867.04
25
Konka Group Co., Ltd. First Quarter Report 2017
Net cash flows from investing activities 302,942,590.91 509,602,010.32
3. Cash flows from financing activities:
Cash received from capital contributions 265,000.00 4,900,000.00
Including: Cash received from minority shareholder investments
265,000.00 4,900,000.00
by subsidiaries
Cash received as borrowings 2,238,876,860.00 402,000,000.00
Cash received from issuance of bonds
Cash received from other financing activities 444,080,082.06 717,390,962.65
Subtotal of cash inflows from financing activities 2,683,221,942.06 1,124,290,962.65
Repayment of borrowings 1,143,869,292.69 1,652,225,338.64
Cash paid for interest expenses and distribution of dividends or
105,020,297.25 16,401,232.21
profit
Including: dividends or profit paid by subsidiaries to minority
interests
Cash paid for other financing activities 318,701.97 18,138,337.59
Sub-total of cash outflows due to financing activities 1,249,208,291.91 1,686,764,908.44
Net cash flows from financing activities 1,434,013,650.15 -562,473,945.79
4. Effect of foreign exchange rate changes on cash and cash
5,263,241.18 -3,722,947.81
equivalents
5. Net increase in cash and cash equivalents 112,782,409.30 238,650,858.53
Add: Opening balance of cash and cash equivalents 2,020,902,945.14 1,488,154,851.35
6. Closing balance of cash and cash equivalents 2,133,685,354.44 1,726,805,709.88
6. Cash flow statement of the Company
Unit: RMB
Item January-March 2017 January-March 2016
1. Cash flows from operating activities:
Cash received from sale of commodities and rendering of service 4,295,329,683.99 3,339,394,183.83
Tax refunds received 26,891,931.97 77,823,014.80
Cash received from other operating activities 707,878,209.00 189,560,391.00
Subtotal of cash inflows from operating activities 5,030,099,824.96 3,606,777,589.63
Cash paid for goods and services 3,920,920,891.18 3,160,511,022.15
Cash paid to and for employees 276,264,044.77 267,788,226.72
Taxes paid 46,694,339.02 156,747,638.23
Cash paid for other operating activities 1,124,083,766.45 417,545,747.64
Subtotal of cash outflows due to operating activities 5,367,963,041.42 4,002,592,634.74
Net cash flows from operating activities -337,863,216.46 -395,815,045.11
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Konka Group Co., Ltd. First Quarter Report 2017
2. Cash flows from investing activities:
Cash received from retraction of investments 5,685.00
Cash received as investment income 32,123,053.44 17,509,465.52
Net cash received from disposal of fixed assets, intangible assets
98,058.25 110,602.00
and other long-term assets
Net cash received from disposal of subsidiaries or other business
units
Cash received from other investing activities 557,000,000.00 1,122,000,000.00
Subtotal of cash inflows from investing activities 589,221,111.69 1,139,625,752.52
Cash paid to acquire fixed assets, intangible assets and other
15,173,135.90 2,400,854.44
long-term assets
Cash paid for investment 40,000,000.00 8,016,000.00
Net cash paid to acquire subsidiaries and other business units
Cash paid for other investing activities 333,255,000.00 570,030,000.00
Subtotal of cash outflows due to investing activities 388,428,135.90 580,446,854.44
Net cash flows from investing activities 200,792,975.79 559,178,898.08
3. Cash flows from financing activities:
Cash received from capital contributions
Cash received as borrowings 471,029,374.72 402,000,000.00
Cash received from issuance of bonds
Cash received from other financing activities 141,159,013.75
Subtotal of cash inflows from financing activities 612,188,388.47 402,000,000.00
Repayment of borrowings 165,708,656.06
Cash paid for interest expenses and distribution of dividends or
101,133,666.93 2,671,625.00
profit
Cash paid for other financing activities 318,701.97 310,717,730.59
Sub-total of cash outflows due to financing activities 267,161,024.96 313,389,355.59
Net cash flows from financing activities 345,027,363.51 88,610,644.41
4. Effect of foreign exchange rate changes on cash and cash
7,947,240.71 -462,682.54
equivalents
5. Net increase in cash and cash equivalents 215,904,363.55 251,511,814.84
Add: Opening balance of cash and cash equivalents 973,613,753.40 478,267,624.53
6. Closing balance of cash and cash equivalents 1,189,518,116.95 729,779,439.37
II Auditor’s report
Is this Report audited?
□ Yes √ No
27
Konka Group Co., Ltd. First Quarter Report 2017
This Report is not audited.
The Board of Directors
Konka Group Co., Ltd.
April 28, 2017
28