Konka Group Co., Ltd. Third Quarter Report 2017
Konka Group Co., Ltd.
Third Quarter Report 2017
2017-54
October 2017
1
Konka Group Co., Ltd. Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory
Board”) as well as the directors, supervisors and senior management of Konka
Group Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy and
completeness of the contents of this Report, and shall be jointly and severally
liable for any false representation, misleading statements or material omissions
in this Report.
All the directors of the Company attended the board meeting for the review of
this Report.
Liu Fengxi, head of the Company, Li Chunlei, accounting head for this Report,
and Feng Junxiu, head of the accounting department (head of accounting) of the
Company, hereby guarantee that the financial statements carried in this Report
are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be
any discrepancies or misunderstandings between the two versions, the Chinese
version shall prevail.
2
Konka Group Co., Ltd. Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting
data.
□ Yes √ No
September 30, 2017 December 31, 2016 Change
Total assets (RMB) 23,001,136,641.03 17,243,119,597.97 33.39%
Equity attributable to owners of the
3,044,154,733.72 2,901,481,607.04 4.92%
parent (RMB)
January-September
July-September 2017 YoY change YoY change
2017
Net sales (RMB) 8,757,653,006.20 45.76% 20,163,618,985.63 37.94%
Net margin attributable to shareholders
97,974,481.26 271.39% 128,845,749.12 390.65%
of the Company (RMB)
Net margin attributable to shareholders
of the Company before exceptional -34,435,053.99 63.11% -78,891,266.16 35.38%
gains and losses (RMB)
Net cash from operating activities
-- -- -3,562,577,656.53 -767.70%
(RMB)
Basic earnings per share (RMB/share) 0.0407 271.73% 0.0535 390.76%
Diluted earnings per share
0.0407 271.73% 0.0535 390.76%
(RMB/share)
Weighted average return on equity (%) 3.31% 5.36% 4.33% 5.92%
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Profit/loss on disposal of non-current assets (including offset amount of asset
142,149,089.54
impairment provisions)
Government grants charged to the profit/loss for the Reporting Period (except for
the government grants closely related to the business of the Company and given 109,706,318.21
at a fixed quota or amount in accordance with the State’s uniform standards)
Profit/loss on entrusting others with investments or asset management 43,911,870.36
3
Konka Group Co., Ltd. Third Quarter Report 2017
Profit/loss on fair value changes of transactional financial assets and liabilities &
investment profit on disposal of transactional financial assets and liabilities as
-49,884,612.46
well as financial assets available for sale, except for effectively hedging business
related to normal business operations of the Company
Profit/loss on entrusted loans 521,749.21
Non-operating income and expense other than the above 5,257,764.10
Less: Income tax effects 42,046,367.18
Minority interests effects (after tax) 1,878,796.50
Total 207,737,015.28 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the
definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies
Offering Their Securities to the Public—Exceptional Gains and Losses, or reclassified any
exceptional gain/loss item given as an example in the said explanatory announcement as a recurrent
gain/loss:
√ Applicable □ Not applicable
Involved amount
Item Reason
(RMB)
Government grants closely related to the Company’s normal operation and
Tax rebates on
42,945,541.02 constantly given at certain quotas or amounts according to the government’s
software
policies and standards
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting
Rights, and Shareholdings of Top 10 Shareholders
Unit: share
Total number of common Total number of preference shareholders with resumed
93,915 0
shareholders at period-end voting rights at period-end (if any)
Top 10 shareholders
Shareholdin Total shares Restricted Pledged or frozen
Nature of
Name of shareholder g held at shares held at shares
shareholder
percentage period-end period-end Status Number
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
Foreign
HOLY TIME GROUP LIMITED 2.33% 56,049,824 0
corporation
GUOYUAN SECURITIES Foreign 2.27% 54,755,145 0
4
Konka Group Co., Ltd. Third Quarter Report 2017
BROKERAG (HK) CO., corporation
LIMITED
Foreign
GAOLING FUND,L.P. 2.19% 52,801,250 0
corporation
Domestic
WANG LEI 1.55% 37,406,339 0
individual
State-owned
CMS (HK) CO., LIMITED 0.93% 22,502,120 0
corporation
Foreign
NAM NGAI 0.92% 22,240,040 0
individual
YUNNAN INTERNATIONAL
TRUST CO., LTD-JULI NO.48 Other 0.84% 20,216,860 0
SINGLE CAPITAL TRUST
CSI CAPITAL MANAGEMENT Foreign
0.83% 20,050,928 0
LIMITED corporation
Top 10 non-restricted shareholders
Non-restricted shares held at Type of stock
Name of shareholder
period-end Type Number
RMB common
OCT ENTERPRISES CO. 523,746,932 523,746,932
stock
Domestically
CITIC SECURITIES BROKERAG (HK) CO.,
182,100,202 listed stock for 182,100,202
LIMITED
foreign investors
Domestically
HOLY TIME GROUP LIMITED 56,049,824 listed stock for 56,049,824
foreign investors
Domestically
GUOYUAN SECURITIES BROKERAG (HK) CO.,
54,755,145 listed stock for 54,755,145
LIMITED
foreign investors
Domestically
GAOLING FUND,L.P. 52,801,250 listed stock for 52,801,250
foreign investors
RMB common
WANG LEI 37,406,339 37,406,339
stock
Domestically
CMS (HK) CO., LIMITED 22,502,120 listed stock for 22,502,120
foreign investors
Domestically
NAM NGAI 22,240,040 listed stock for 22,240,040
foreign investors
5
Konka Group Co., Ltd. Third Quarter Report 2017
YUNNAN INTERNATIONAL TRUST CO., RMB common
20,216,860 20,216,860
LTD-JULI NO.48 SINGLE CAPITAL TRUST stock
Domestically
CSI CAPITAL MANAGEMENT LIMITED 20,050,928 listed stock for 20,050,928
foreign investors
The wholly owned subsidiary Jialong Investment Co., Ltd. of the first majority shareholder
OVERSEAS CHINESE TOWN ENTERPRISES CO. respectively hold the common share of
Related or acting-in-concert the Company of 180,001,110 shares and 18,360,000 shares through CITIC SECURITIES
parties among shareholders BROKERAG (HK) CO., LIMITED and CMS (HK) CO., LIMITED, and Jialong Investment
above 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 10 common shareholders
A-share shareholder Mr. Wang Lei held 37,406,339 shares through customer credit collateral
conducting securities margin
securities trading account of GF SECURITIES CO., LTD.
trading (if any)
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-r
estricted common shareholders of the Company conducted 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 Top 10 of Them at
Period-End
□ Applicable √ Not applicable
6
Konka Group Co., Ltd. Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
(I) During the Reporting Period, the Company adopted measures such as mechanism reform,
increasing R&D and marketing investments, as well as further exploring customer value, in order to
drive growth in its primary business lines.
The Company has become a top sponsor of the Jiangsu Suning Football Club at the beginning of
2017 and an official partner of La Liga in China in the third quarter of the year, which will bring
new vitality to the Konka brand and help take it to a new level of recognition. Also in the third
quarter of 2017, the Company introduced a series of new TV products, including A1 TV (smart TV),
R1 TV (inverter TV) and M1 TV (music TV).
(II) Exceptional gains and losses have an effect of RMB208 million on the net margin achieved
during the nine months ended September 30, 2017.
(III) Changes in Selected Consolidated Financial Statement Items
Unit: RMB’0,000
September 30, December 31,
Item Change Change (%) Main reason for change
2017 2016
New such investments in Guangdong Chutian
Long-term equity
131,580.58 30,964.81 100,615.77 324.94% Dragon Smart Card Co., Ltd., Shenzhen Yaode
investments
Technology Co., Ltd., etc.
Interest payable 7,242.62 2,134.42 5,108.20 239.33% Larger total loan amount
New such borrowings obtained by the parent
Short-term
1,224,201.70 656,283.42 567,918.28 86.54% company and subsidiary Shenzhen Kangqiao
borrowings
Jiacheng Property Investment Co., Ltd.
January-Septem January-Septemb
Item Change Change (%) Main reason for change
ber 2017 er 2016
Higher interest costs caused by a larger total
Finance costs 19,706.10 10,150.89 9,555.21 94.13%
loan amount
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
(I) Regarding the transfer of the 70% stake held by the Company in Shenzhen Kangqiao Jiacheng
Property Investment Co., Ltd. (“Kangqiao Jiacheng”): The Proposal on Transfer of Interests in
Kangqiao Jiacheng has been considered and approved both at the 34th Meeting of the 8th Board of
7
Konka Group Co., Ltd. Third Quarter Report 2017
Directors and the 4th Special Meeting of Shareholders in 2017 of the Company. As per the rules
governing trading of state-owned equities, the Company has listed on October 13, 2017 the said
stake with the China Beijing Equity Exchange for sale. As for the land in the Konka Headquarters
urban renewal project under Kangqiao Jiacheng’s control, Kangqiao Jiacheng has signed a contract
to transfer all of it to the Company. The Company has paid the contractual price in full and is
awaiting the land use certificate.
(II) About the Kunshan Shuiyue Zhouzhuang real estate project: Phase III has been completed and
accepted is awaiting house buyers to make payments and move in. Phase IV is under construction.
(III) About the Konka Technological Innovation Center project: The land use right transfer
agreement has been signed. And planning is currently ongoing.
Disclosure
Announcement on significant event Website link to announcement
date
Announcement on Renewal of Konka’s Old Plant in
03/11/2017 http://www.cninfo.com.cn/finalpage/2017-03-11/1203148742.PDF
Dongguan and Incorporation of New Plant in Dongguan
Announcement on Listing Enraytek Equities for Sale 05/23/2017 http://www.cninfo.com.cn/finalpage/2017-05-23/1203553959.PDF
Announcement on Progress on Listing Enraytek Equities
06/22/2017 http://www.cninfo.com.cn/finalpage/2017-06-22/1203637987.PDF
for Sale
Announcement on Intention to Joint Industry Fund 06/30/2017 http://www.cninfo.com.cn/finalpage/2017-06-30/1203665190.PDF
Announcement on Listing Partial Equities in Kunshan
06/30/2017 http://www.cninfo.com.cn/finalpage/2017-06-30/1203665201.PDF
Konka Electronic for Sale
Announcement on Progress on Listing Partial Equities in
09/23/2017 http://www.cninfo.com.cn/finalpage/2017-09-23/1203995662.PDF
Kunshan Konka Electronic for Sale
Announcement on Completion of Equity Ownership
Transfer Formalities with Industrial and Commercial
09/28/2017 http://www.cninfo.com.cn/finalpage/2017-09-28/1204006821.PDF
Administration Regarding Transfer of Partial Equities in
Kunshan Konka Electronic
Announcement on Investment in Chutian Dragon 06/30/2017 http://www.cninfo.com.cn/finalpage/2017-06-30/1203665191.PDF
Announcement on Investment Progress in Chutian
07/05/2017 http://www.cninfo.com.cn/finalpage/2017-07-05/1203681608.PDF
Dragon
Announcement on Signing of Strategic Cooperation
07/13/2017 http://www.cninfo.com.cn/finalpage/2017-07-13/1203699941.PDF
Agreement
Announcement on Intention to List Certain Properties for
08/25/2017 http://www.cninfo.com.cn/finalpage/2017-08-25/1203862779.PDF
Sale
8
Konka Group Co., Ltd. Third Quarter Report 2017
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin
during the period the beginning of the current year through the end of the next reporting period, as
well as the reasons:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Sour
ce of
Variety Code Name Gain/los
Initial Cumulat inves
Accounti s on fair
ive fair Purchas Sold in Gain/loss
of of of ng Opening value Closing Accounting
value ed in Reporti in
investme measure book changes book tmen
changes Reportin ng Reporting
securitie securiti securi ment value in value title
charged g Period Period Period
nt cost model Reportin t
to equity
s es ties g Period
fund
s
The
Com
Available-fo
Domesti Fair pany
12,841. r-sale
c/Foreig 002879 CLKJ 6,270.96 value 6,270.96 0 0 0 6,570.24 0 ’s
20 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
10,850. r-sale
c/Foreig 300666 JFDZ 1,624.00 value 6,681.50 0 0 0 4,168.50 0 ’s
00 financial
n stock method own
assets
fund
s
Domesti Fair Available-fo The
MGZ 10,898.
c/Foreig 002881 2,804.48 value 7,155.18 0 0 0 3,743.48 0 r-sale Com
N 66
n stock method financial pany
9
Konka Group Co., Ltd. Third Quarter Report 2017
assets ’s
own
fund
s
The
Com
Available-fo
Domesti Fair pany
13,504. r-sale
c/Foreig 002882 JLY 5,232.80 value 5,232.80 0 0 0 8,271.20 0 ’s
00 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
HNG 4,452.7 r-sale
c/Foreig 300669 1,551.00 value 2,456.22 0 0 0 1,996.56 0 ’s
F 8 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
DYZ 6,093.6 r-sale
c/Foreig 300670 2,306.23 value 2,306.23 0 0 0 3,787.45 0 ’s
N 8 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
FMD 6,856.4 r-sale
c/Foreig 300671 2,132.93 value 2,132.93 0 0 0 4,723.48 0 ’s
Z 1 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
5,775.0 r-sale
c/Foreig 300672 GKW 1,958.88 value 0 0 0 1,958.88 3,816.12 0 ’s
0 financial
n stock method own
assets
fund
s
The
Available-fo
Domesti Fair Com
6,497.4 r-sale
c/Foreig 300675 JKY 1,277.34 value 0 0 0 1,277.34 5,220.06 0 pany
0 financial
n stock method ’s
assets
own
10
Konka Group Co., Ltd. Third Quarter Report 2017
fund
s
The
Com
Available-fo
Domesti Fair pany
34,147. r-sale
c/Foreig 300676 HDJY 4,242.04 value 0 0 0 4,242.04 29,905.76 0 ’s
80 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
HWK 3,590.4 r-sale
c/Foreig 002888 1,148.16 value 0 0 0 1,148.16 2,442.24 0 ’s
J 0 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
YKY 10,475. r-sale
c/Foreig 300677 4,873.21 value 0 0 0 4,873.21 5,602.16 0 ’s
L 37 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
ZKX 3,977.8 r-sale
c/Foreig 300678 1,208.90 value 0 0 0 1,208.90 2,768.92 0 ’s
X 2 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
7,401.2 r-sale
c/Foreig 002889 DFJS 3,260.88 value 0 0 0 3,260.88 4,140.36 0 ’s
4 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
17,878.0 29,568. r-sale
c/Foreig 300679 DLJS 17,878.08 value 0 0 0 11,689.92 0 ’s
8 00 financial
n stock method own
assets
fund
s
11
Konka Group Co., Ltd. Third Quarter Report 2017
The
Com
Available-fo
Domesti Fair pany
4,842.5 r-sale
c/Foreig 300682 LXKJ 1,790.75 value 0 0 0 1,790.75 3,051.75 0 ’s
0 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
3,838.9 r-sale
c/Foreig 300686 ZDL 1,765.32 value 0 0 0 1,765.32 2,073.64 0 ’s
6 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
HTS 14,681. r-sale
c/Foreig 300683 8,169.12 value 0 0 0 8,169.12 6,512.48 0 ’s
W 60 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
LHG 14,978. r-sale
c/Foreig 300691 3,192.00 value 0 0 0 3,192.00 11,786.00 0 ’s
D 00 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
14,137. r-sale
c/Foreig 002892 KLE 3,810.52 value 0 0 0 3,810.52 10,327.03 0 ’s
55 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
ZHH 14,310. r-sale
c/Foreig 300692 2,326.70 value 0 0 0 2,326.70 11,983.30 0 ’s
B 00 financial
n stock method own
assets
fund
s
Domesti Fair 11,654. Available-fo The
300693 SHGF 3,316.60 0 0 0 3,316.60 8,337.50 0
c/Foreig value 10 r-sale Com
12
Konka Group Co., Ltd. Third Quarter Report 2017
n stock method financial pany
assets ’s
own
fund
s
The
Com
Available-fo
Domesti Fair pany
8,119.4 r-sale
c/Foreig 002891 ZCGF 2,767.34 value 0 0 0 2,767.34 5,352.10 0 ’s
4 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
CHG 12,008. r-sale
c/Foreig 002895 2,776.85 value 0 0 0 2,776.85 9,231.15 0 ’s
F 00 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
WMK 15,849. r-sale
c/Foreig 300698 1,980.00 value 0 0 0 1,980.00 13,869.90 0 ’s
J 90 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
GWF 48,744. r-sale
c/Foreig 300699 7,623.02 value 0 0 0 7,623.02 41,120.98 0 ’s
C 00 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
9,178.0 r-sale
c/Foreig 300697 DGHJ 1,968.54 value 0 0 0 1,968.54 7,209.52 0 ’s
6 financial
n stock method own
assets
fund
s
Available-fo The
Domesti Fair
SLY 11,631. r-sale Com
c/Foreig 002898 2,999.91 value 0 0 0 2,999.91 8,631.51 0
Y 42 financial pany
n stock method
assets ’s
13
Konka Group Co., Ltd. Third Quarter Report 2017
own
fund
s
The
Com
Available-fo
Domesti Fair pany
YHG 12,888. r-sale
c/Foreig 002897 5,004.56 value 0 0 0 5,004.56 7,884.36 0 ’s
F 92 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
DLX r-sale
c/Foreig 300700 1,930.16 value 0 0 7,665.44 1,930.16 0 0 9,595.60 ’s
C financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
10,311. r-sale
c/Foreig 002899 YPS 3,498.90 value 0 0 0 3,498.90 6,812.50 0 ’s
40 financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
HTR r-sale
c/Foreig 002893 2,602.24 value 0 0 5,435.52 2,602.24 0 0 8,037.76 ’s
L financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
TYG 17,714. r-sale
c/Foreig 300702 6,005.88 value 0 0 0 6,005.88 11,708.92 0 ’s
F 80 financial
n stock method own
assets
fund
s
The
Available-fo Com
Domesti Fair
10,961.8 19,274.0 r-sale pany
c/Foreig 002900 HSL 8,312.20 value 0 0 8,312.20 0 0
0 0 financial ’s
n stock method
assets own
fund
14
Konka Group Co., Ltd. Third Quarter Report 2017
s
The
Com
Available-fo
Domesti Fair pany
DBY r-sale
c/Foreig 002901 3,248.36 value 0 0 4,290.87 3,248.36 0 0 7,539.23 ’s
L financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
r-sale
c/Foreig 300654 SJTH 1,542.00 value 0 0 1,412.00 1,542.00 0 0 2,954.00 ’s
financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
MPG r-sale
c/Foreig 002902 4,267.26 value 0 0 1,878.44 4,267.26 0 0 6,145.70 ’s
C financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
r-sale
c/Foreig 300705 JDZY 2,551.02 value 0 0 0 2,551.02 0 0 2,551.02 ’s
financial
n stock method own
assets
fund
s
The
Com
Available-fo
Domesti Fair pany
RFG 232,711,9 168,120, 13,418,1 13,418,10 181,539, r-sale
c/Foreig 300241 value 0 0 0 ’s
D 50.00 900 00.00 0.00 000.00 financial
n stock method own
assets
fund
s
Other securities investments
0 -- 0 0 0 0 0 0 0 -- --
held at period-end
232,853,1 168,153, 13,418,1 31,644.0 119,296. 391,818 13,682,83 181,595,
Total -- -- --
69.14 135.82 00.00 7 74 .41 9.09 097.31
Disclosure date of announcement about Board’s consent for securities
N/A
investment
Disclosure date of announcement about shareholders’ meeting’s consent
N/A
for securities investment (if any)
15
Konka Group Co., Ltd. Third Quarter Report 2017
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: RMB’0,000
Capital source for derivative
U.S. dollar financings
investment
Lawsuits involved (if applicable) N/A
Disclosure date of board
announcement approving 05/24/2014
derivative investment (if any)
Disclosure date of shareholders’
meeting announcement approving 06/10/2014
derivative investment (if any)
We engage in forward forex transactions to reduce the currency risk when securing
Analysis of risks and control
foreign-currency financing. This is very needed in our routine operation and is in
measures associated with
compliance with the applicable laws and regulations. We have formulated the Management
derivative investments held in the
Rules of Konka Group Co., Ltd. for Investment In Derivative Financial Instruments,
Reporting Period (including but
making clear the relevant consideration and approval procedure, risk control, etc.. We
not limited to market risk, liquidity
always sign forward forex contracts with large banks such as the Bank of China, which
risk, credit risk, operational risk,
operate steadily and have good credit standing, which could help prevent loss on forward
legal risk, etc.)
forex contracts due to bank failure.
How we usually measure the fair value of derivative financial instruments: Based on the
Changes in market prices or fair forward forex sales and purchase contracts that are signed between the Company and
value of derivative investments banks and have not expired in a Reporting Period, we recognize the differences between
during the Reporting Period (fair the quotations for these contracts on the balance sheet dates provided by the banks and the
value analysis should include contractual prices as transactional financial assets or liabilities, and the profit/loss on fair
measurement method and related value changes is recognized accordingly. Because these contracts have locked in exchange
assumptions and parameters) rates, no changes will occur when comparing the fair value on signing dates with that on
delivery dates.
Significant changes in accounting
policies and specific accounting
principles adopted for derivative
None
investments in the Reporting
Period compared to previous
reporting period
It is considered necessary for the Company to lock in foreign-currency financing costs
Opinion of independent directors through financial instruments, because it could effectively reduce the currency risk when
on derivative investments and risk securing foreign-currency financing. The Company has formulated the internal control
control mechanism for investment in derivative financial instruments, and the relevant risk control
measures that the Company has taken are considered effective.
Unit: RMB’0,000
16
Konka Group Co., Ltd. Third Quarter Report 2017
Type of derivative Opening Closing
Gain/loss in Closing investment amount as a percentage of
financial contractual contractual
Reporting Period the Company’s closing net assets
instrument amount amount
Forward forex
137,247.18 175,534.44 -2,622.26 57.66%
contract
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
1. Outline of Targeted Measures in the Reporting Period
In the Reporting Period, the Company continuously carried out the “Heart Journey” activity with
the theme of caring for the affection in the left-behind children family in the poor area and built
“Heart Journey Affection House” in the western poor primary school to let the children have the
face-to-face communication with the relatives in other countries via the video, and help left-behind
children to gather with the parents in the city during the summer vacation.
2. List of Targeted Measures of Listed Companies in the Reporting Period
Measurement
Indicator Number/Progress
unit
I. General condition —— ——
Of which: 1. funds RMB’0,000 10
II. Itemized investment —— ——
4. Out of poverty by education —— ——
Of which: 4.1 invested amount of supporting students in poverty RMB’0,000 10
17
Konka Group Co., Ltd. Third Quarter Report 2017
3. Subsequent Targeted Measure Plans
In the fourth quarter of 2017, our company will continue to carry out the “Heart Journey” public
welfare activity with the theme of caring for the affection in the left-behind children family in the
poor area, build “Heart Journey Affection House” in the western poor primary school.
18
Konka Group Co., Ltd. Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 2,692,203,387.51 2,617,606,256.42
Settlement reserve
Interbank lendings
Financial assets at fair value through gains/losses 186,620,542.13 252,084,994.12
Derivative financial assets
Notes receivable 3,126,410,386.16 2,871,633,498.82
Accounts receivable 2,586,118,790.93 2,307,965,548.49
Prepayments 469,186,670.75 274,810,658.72
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable 2,610,732.87 1,342,063.84
Dividends receivable 10,171,609.48
Other accounts receivable 307,585,180.11 222,389,921.80
Financial assets purchased under agreements to resell
Inventories 7,526,401,822.92 4,287,413,944.35
Assets held for sale
Non-current assets due within one year
Other current assets 1,376,814,445.86 562,204,116.20
Total current assets 18,273,951,959.24 13,407,622,612.24
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 290,379,320.67 314,967,639.36
Held-to-maturity investments
19
Konka Group Co., Ltd. Third Quarter Report 2017
Long-term accounts receivable
Long-term equity investments 1,315,805,842.83 309,648,120.37
Investment property 217,863,448.56 222,086,904.26
Fixed assets 1,634,393,480.21 1,573,978,914.03
Construction in progress 72,844,779.62 315,536,437.05
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 202,318,456.68 302,045,627.44
R&D expense
Goodwill 3,597,657.15 3,597,657.15
Long-term deferred expense 138,603,216.64 91,901,533.39
Deferred income tax assets 831,378,479.43 701,734,152.68
Other non-current assets 20,000,000.00
Total non-current assets 4,727,184,681.79 3,835,496,985.73
Total assets 23,001,136,641.03 17,243,119,597.97
Current liabilities:
Short-term borrowings 12,242,016,996.08 6,562,834,226.51
Borrowings from Central Bank
Money deposits accepted and inter-bank deposits
Interbank borrowings
Financial liabilities at fair value through gains/losses 65,289,755.55 337,263.13
Derivative financial liabilities
Notes payable 1,122,048,001.88 863,709,138.39
Accounts payable 2,219,065,147.93 3,160,073,575.56
Advances received 1,112,703,992.64 1,201,426,223.70
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 177,416,333.95 273,059,516.65
Taxes payable 224,832,066.52 121,905,421.18
Interest payable 72,426,214.72 21,344,172.45
Dividends payable
Other accounts payable 1,900,155,483.95 1,444,349,986.74
20
Konka Group Co., Ltd. Third Quarter Report 2017
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 394,871.76 41,025.60
Other current liabilities
Total current liabilities 19,136,348,864.98 13,649,080,549.91
Non-current liabilities:
Long-term borrowings 197,000,000.00 70,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable 30,051,282.10 30,102,564.14
Long-term payroll payable 14,194,392.36 18,151,659.90
Special payables
Provisions 6,181,865.10 7,551,985.10
Deferred income 110,797,093.51 130,571,125.42
Deferred income tax liabilities 20,335,245.64 19,162,818.83
Other non-current liabilities
Total non-current liabilities 378,559,878.71 275,540,153.39
Total liabilities 19,514,908,743.69 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 89,757,418.37 79,723,092.04
Less: Treasury shares
Other comprehensive income -3,139,053.42 -6,932,104.65
Special reserve
Surplus reserve 847,908,466.28 847,908,466.28
Provisions for general risks
Retained earnings -298,317,505.51 -427,163,254.63
21
Konka Group Co., Ltd. Third Quarter Report 2017
Equity attributable to owners of the parent 3,044,154,733.72 2,901,481,607.04
Minority interests 442,073,163.62 417,017,287.63
Total owners’ equity 3,486,227,897.34 3,318,498,894.67
Total liabilities and owners’ equity 23,001,136,641.03 17,243,119,597.97
Legal representative: Liu Fengxi Accounting head for this Report: Li Chunlei
Head of the accounting department: Feng Junxiu
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 753,820,064.05 982,562,273.45
Financial assets at fair value through gains/losses 731,547.17 39,894,844.12
Derivative financial assets
Notes receivable 2,350,625,845.35 2,513,459,083.61
Accounts receivable 3,724,596,263.45 3,145,529,199.35
Prepayments 1,245,235,267.64 523,905,219.52
Interest receivable 3,640,038.51 4,502,350.43
Dividends receivable
Other accounts receivable 4,576,669,476.00 1,725,494,161.08
Inventories 2,295,660,440.60 1,926,824,243.11
Assets held for sale
Non-current assets due within one year
Other current assets 1,269,592,685.71 505,418,961.79
Total current assets 16,220,571,628.48 11,367,590,336.46
Non-current assets:
Available-for-sale financial assets 255,073,223.36 270,217,639.36
Held-to-maturity investments 170,000,000.00 170,000,000.00
Long-term accounts receivable
Long-term equity investments 3,018,840,622.38 2,383,970,009.87
Investment property 217,863,448.56 222,086,904.26
Fixed assets 488,641,897.11 499,826,176.39
Construction in progress 43,754,488.35 11,754,885.34
Engineering materials
Disposal of fixed assets
22
Konka Group Co., Ltd. Third Quarter Report 2017
Productive living assets
Oil-gas assets
Intangible assets 86,618,581.92 90,880,022.23
R&D expense
Goodwill
Long-term deferred expense 72,415,509.03 66,995,753.17
Deferred income tax assets 732,322,179.02 656,704,805.39
Other non-current assets 20,000,000.00
Total non-current assets 5,105,529,949.73 4,372,436,196.01
Total assets 21,326,101,578.21 15,740,026,532.47
Current liabilities:
Short-term borrowings 8,391,390,785.77 5,436,958,840.80
Financial liabilities at fair value through gains/losses 65,289,755.55 337,263.13
Derivative financial liabilities
Notes payable 2,229,094,189.49 1,454,982,347.31
Accounts payable 5,677,931,708.34 3,710,175,718.31
Advances received 691,930,638.61 322,402,357.59
Payroll payable 100,082,946.12 131,415,800.19
Taxes payable 18,623,644.70 19,823,949.08
Interest payable 84,776,643.18 23,767,528.97
Dividends payable
Other accounts payable 1,287,206,035.08 1,760,751,455.81
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 18,546,326,346.84 12,860,615,261.19
Non-current liabilities:
Long-term borrowings 167,000,000.00 40,000,000.00
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
23
Konka Group Co., Ltd. Third Quarter Report 2017
Provisions 6,181,865.10 7,551,985.10
Deferred income 80,665,394.34 82,166,818.30
Deferred income tax liabilities 12,026,251.50
Other non-current liabilities
Total non-current liabilities 253,847,259.44 141,745,054.90
Total liabilities 18,800,173,606.28 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 63,627,505.93 64,794,108.39
Less: Treasury shares
Other comprehensive income -5,570,215.04 6,714,437.62
Special reserve
Surplus reserve 847,908,466.28 847,908,466.28
Retained earnings -787,983,193.24 -589,696,203.91
Total owners’ equity 2,525,927,971.93 2,737,666,216.38
Total liabilities and owners’ equity 21,326,101,578.21 15,740,026,532.47
3. Consolidated Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 8,757,653,006.20 6,008,160,392.02
Including: Net sales 8,757,653,006.20 6,008,160,392.02
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 8,752,019,700.99 6,164,163,892.40
Including: Cost of sales 7,922,849,249.06 5,373,432,183.80
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
24
Konka Group Co., Ltd. Third Quarter Report 2017
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 71,791,544.49 11,154,354.58
Selling expense 510,030,189.59 603,589,647.33
Administrative expense 163,217,946.83 148,379,863.98
Finance costs 86,178,068.83 33,135,473.20
Asset impairment losses -2,047,297.81 -5,527,630.49
Add: Gains on fair value changes (“-” for losses) -33,599,441.19 -3,399,672.74
Investment income (“-” for losses) 108,748,021.30 35,392,521.44
Including: Share of gains/losses of associates and joint
-5,172,588.27 6,372,776.66
ventures
Exchange gains (“-” for losses)
Other income 8,824,888.51
3. Operating margin (“-” for losses) 89,606,773.83 -124,010,651.68
Add: Non-operating income 32,615,396.90 24,733,287.65
Including: Gains on disposal of non-current assets -93,760.50 15,335.65
Less: Non-operating expense 5,496,656.85 2,249,495.48
Including: Losses on disposal of non-current assets 544,179.63 195,730.08
4. Gross margin (“-” for losses) 116,725,513.88 -101,526,859.51
Less: Income tax expense 16,307,135.59 -42,408,552.94
5. Net margin (“-” for losses) 100,418,378.29 -59,118,306.57
Attributable to owners of the parent 97,974,481.26 -57,165,694.07
Attributable to minority interests 2,443,897.03 -1,952,612.50
6. Other comprehensive income, net of tax 6,030,691.93 -8,256,379.72
Other comprehensive income, net of tax attributable to
6,042,757.71 -8,137,854.78
owners of the parent
6.1 Other comprehensive income that will not be
reclassified into gains/losses
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 gains/losses under equity method
6.2 Other comprehensive income to be subsequently
6,042,757.71 -8,137,854.78
reclassified into gains/losses
6.2.1 Share of other comprehensive income of investees
that will be reclassified into gains/losses under equity method
6.2.2 Gains/Losses on fair value changes of
21,330.65 -1,440,103.75
available-for-sale financial assets
25
Konka Group Co., Ltd. Third Quarter Report 2017
6.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences 6,021,427.06 -6,697,751.03
6.2.6 Other
Other comprehensive income, net of tax attributable to
-12,065.78 -118,524.94
minority interests
7. Total comprehensive income 106,449,070.22 -67,374,686.29
Attributable to owners of the parent 104,017,238.97 -65,303,548.85
Attributable to minority interests 2,431,831.25 -2,071,137.44
8. Earnings per share
8.1 Basic earnings per share 0.0407 -0.0237
8.2 Diluted earnings per share 0.0407 -0.0237
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 RMB0.00, with the corresponding
amount for the last period being RMB0.00.
Legal representative: Liu Fengxi Accounting head for this Report: Li Chunlei
Head of the accounting department: Feng Junxiu
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 3,637,822,430.85 3,617,192,362.26
Less: Operating expenses 3,285,464,737.51 3,284,925,525.21
Taxes and surtaxes 6,078,418.20 3,790,230.21
Selling expense 369,047,354.26 424,922,336.88
Administrative expense 105,351,849.43 95,261,400.94
Finance costs 84,765,740.63 44,847,628.16
Asset impairment losses
Add: Gains on fair value changes (“-” for losses) -47,067,901.39 -3,399,672.74
Investment income (“-” for loss) 91,017,958.19 37,453,620.68
Including: Share of gains/losses of associates and joint
-4,372,739.06 2,523,420.07
ventures
Other income 5,955,256.85
2. Operating margin (“-” for losses) -162,980,355.53 -202,500,811.20
Add: Non-operating income 8,944,099.57 6,828,609.03
Including: Gains on disposal of non-current assets -71,270.87 -99,390.03
26
Konka Group Co., Ltd. Third Quarter Report 2017
Less: Non-operating expense 1,422,633.94 1,746,185.21
Including: Losses on disposal of non-current assets 48,087.38 127,063.14
3. Gross margin (“-” for losses) -155,458,889.90 -197,418,387.38
Less: Income tax expense -45,753,296.57 -49,196,799.99
4. Net margin (“-” for losses) -109,705,593.33 -148,221,587.39
5. Other comprehensive income, net of tax -476,538.62 -2,140,403.86
5.1 Other comprehensive income that will not be reclassified
into gains and losses
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 gains/losses under equity method
5.2 Other comprehensive income to be subsequently
-476,538.62 -2,140,403.86
reclassified into gains/losses
5.2.1 Share of other comprehensive income of investees that
will be reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of
-1,442,913.00
available-for-sale financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences -476,538.62 -697,490.86
5.2.6 Other
6. Total comprehensive income -110,182,131.95 -150,361,991.25
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 20,163,618,985.63 14,617,241,214.26
Including: Net sales 20,163,618,985.63 14,617,241,214.26
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 20,247,905,896.83 14,905,733,137.33
Including: Cost of sales 18,033,040,507.13 12,551,157,276.22
27
Konka Group Co., Ltd. Third Quarter Report 2017
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 106,221,136.53 67,304,296.12
Selling expense 1,484,033,496.13 1,712,736,570.94
Administrative expense 427,326,047.80 439,299,154.00
Finance costs 197,060,964.29 101,508,905.20
Asset impairment losses 223,744.95 33,726,934.85
Add: Gains on fair value changes (“-” for losses) -136,677,198.92 -21,541,328.13
Investment income (“-” for losses) 175,753,593.36 45,978,903.06
Including: Share of gains/losses of associates and joint
-9,746,882.46 -1,158,799.02
ventures
Exchange gains (“-” for losses)
Other income 45,663,280.02
3. Operating margin (“-” for losses) 452,763.26 -264,054,348.14
Add: Non-operating income 155,962,505.19 178,920,950.29
Including: Gains on disposal of non-current assets 33,504,035.07 3,162,497.32
Less: Non-operating expense 9,132,194.96 5,780,513.84
Including: Losses on disposal of non-current assets 1,609,572.53 813,295.65
4. Gross margin (“-” for losses) 147,283,073.49 -90,913,911.69
Less: Income tax expense 12,468,362.62 -41,702,555.84
5. Net margin (“-” for losses) 134,814,710.87 -49,211,355.85
Attributable to owners of the parent 128,845,749.12 -44,330,957.31
Attributable to minority interests 5,968,961.75 -4,880,398.54
6. Other comprehensive income, net of tax 3,804,131.34 -23,696,604.49
Other comprehensive income, net of tax attributable to
3,793,051.23 -23,296,493.02
owners of the parent
6.1 Other comprehensive income that will not be
reclassified into gains/losses
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
28
Konka Group Co., Ltd. Third Quarter Report 2017
that cannot be reclassified into gains/losses under equity method
6.2 Other comprehensive income to be subsequently
3,793,051.23 -23,296,493.02
reclassified into gains/losses
6.2.1 Share of other comprehensive income of investees
that will be reclassified into gains/losses under equity method
6.2.2 Gains/Losses on fair value changes of
-11,326,667.93 -1,441,978.75
available-for-sale financial assets
6.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
6.2.4 Effective gains/losses on cash flow hedges
6.2.5 Currency translation differences 15,119,719.16 -21,854,514.27
6.2.6 Other
Other comprehensive income, net of tax attributable to
11,080.11 -400,111.47
minority interests
7. Total comprehensive income 138,618,842.21 -72,907,960.34
Attributable to owners of the parent 132,638,800.35 -67,627,450.33
Attributable to minority interests 5,980,041.86 -5,280,510.01
8. Earnings per share
8.1 Basic earnings per share 0.0535 -0.0184
8.2 Diluted earnings per share 0.0535 -0.0184
Where business mergers under the same control occurred in the current period, the net margin
achieved by the merged parties before the business mergers was RMB0.00, with the amount for the
same period of last year being RMB0.00.
6. Parent Company Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 9,910,535,075.58 10,063,172,900.42
Less: Operating expenses 8,729,304,645.07 8,923,684,652.89
Taxes and surtaxes 16,947,221.66 24,999,390.73
Selling expense 1,080,921,951.42 1,233,429,048.82
Administrative expense 293,662,479.34 248,111,963.10
Finance costs 212,325,826.30 117,670,481.29
Asset impairment losses 2,244,928.43 24,699,388.50
Add: Gains on fair value changes (“-” for losses) -110,323,281.75 4,270,970.36
Investment income (“-” for loss) 168,781,887.76 58,081,642.80
Including: Share of gains/losses of associates and joint
-10,868,433.24 6,636,136.04
ventures
29
Konka Group Co., Ltd. Third Quarter Report 2017
Other income 32,371,847.25
2. Operating margin (“-” for losses) -334,041,523.38 -447,069,411.75
Add: Non-operating income 55,898,870.46 105,453,118.72
Including: Gains on disposal of non-current assets 495.98 164,913.82
Less: Non-operating expense 4,011,872.35 2,935,780.09
Including: Losses on disposal of non-current assets 189,097.04 272,185.91
3. Gross margin (“-” for losses) -282,154,525.27 -344,552,073.12
Less: Income tax expense -83,867,535.94 -84,825,295.39
4. Net margin (“-” for losses) -198,286,989.33 -259,726,777.73
5. Other comprehensive income, net of tax -12,284,652.66 -1,499,383.90
5.1 Other comprehensive income that will not be reclassified
into gains and losses
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 gains/losses under equity method
5.2 Other comprehensive income to be subsequently
-12,284,652.66 -1,499,383.90
reclassified into gains/losses
5.2.1 Share of other comprehensive income of investees that
will be reclassified into gains/losses under equity method
5.2.2 Gains/Losses on fair value changes of
-11,358,312.00 -1,444,788.00
available-for-sale financial assets
5.2.3 Gains/Losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
5.2.4 Effective gains/losses on cash flow hedges
5.2.5 Currency translation differences -926,340.66 -54,595.90
5.2.6 Other
6. Total comprehensive income -210,571,641.99 -261,226,161.63
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of
21,955,843,068.81 15,184,869,339.34
service
Net increase in money deposits from customers and interbank
30
Konka Group Co., Ltd. Third Quarter Report 2017
placements
Net increase in loans from Central Bank
Net increase in funds borrowed from other financial institutions
Cash received as premiums of original insurance contracts
Net cash generated by reinsurance business
Net increase in deposits of policy holders and investment fund
Net increase in disposal of financial assets at fair value through
gains/losses
Interest, fees and commissions received
Net increase in interbank borrowings
Net increase in funds in repurchase business
Tax rebates received 237,253,154.71 272,927,227.76
Cash generated by other operating activities 1,096,637,681.38 339,356,257.44
Subtotal of cash generated by operating activities 23,289,733,904.90 15,797,152,824.54
Cash paid for goods and services 24,259,763,724.19 13,509,836,467.28
Net increase in loans and advances to customers
Net increase in funds deposited in 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 1,169,365,639.63 1,255,016,825.23
Taxes paid 359,010,759.67 533,287,050.15
Cash used in other operating activities 1,064,171,437.94 909,591,033.01
Subtotal of cash used in operating activities 26,852,311,561.43 16,207,731,375.67
Net cash from operating activities -3,562,577,656.53 -410,578,551.13
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 12,283,746.20 12,351,724.03
Cash received as investment income 114,059,530.81 29,084,576.02
Net cash generated by disposal of fixed assets, intangible assets
79,031,062.12 349,958.28
and other long-term assets
Net cash generated by disposal of subsidiaries or other business
168,915,846.59
units
Cash generated by other investing activities 1,469,901,449.68 9,238,481,232.27
Subtotal of cash generated by investing activities 1,844,191,635.40 9,280,267,490.60
Cash paid to acquire fixed assets, intangible assets and other
193,253,515.91 106,682,158.73
long-term assets
31
Konka Group Co., Ltd. Third Quarter Report 2017
Cash paid for investments 824,356,279.92 6,017,970.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries and other business units
Cash used in other investing activities 2,248,069,403.23 8,861,934,225.29
Subtotal of cash used in investing activities 3,265,679,199.06 8,974,634,354.02
Net cash from investing activities -1,421,487,563.66 305,633,136.58
3. Cash generated by or used in financing activities:
Cash received as capital contributions 30,730,511.80 9,817,738.00
Including: Cash received from minority shareholder
30,730,511.80 9,817,738.00
investments by subsidiaries
Cash received as borrowings 8,804,504,929.73 3,366,615,353.71
Cash generated by issuance of bonds
Cash generated by other financing activities 444,475,802.89 1,114,445,232.65
Subtotal of cash generated by financing activities 9,279,711,244.42 4,490,878,324.36
Repayment of borrowings 3,517,039,317.11 3,545,455,084.37
Cash paid for interest expenses and distribution of dividends
210,911,004.80 81,880,268.08
or profit
Including: dividends or profit paid by subsidiaries to
746,714.88
minority interests
Cash used in other financing activities 574,376.15 45,886,956.93
Sub-total of cash used in financing activities 3,728,524,698.06 3,673,222,309.38
Net cash from financing activities 5,551,186,546.36 817,656,014.98
4. Effect of foreign exchange rate changes on cash and cash
-31,433,458.63 24,344,476.24
equivalents
5. Net increase in cash and cash equivalents 535,687,867.54 737,055,076.67
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 2,556,590,812.68 2,225,209,928.02
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in operating activities:
Cash generated by sale of commodities and rendering of
10,211,158,433.12 8,538,983,012.64
service
Tax rebates received 76,021,688.23 126,233,515.53
Cash generated by other operating activities 2,170,305,324.47 1,356,473,038.10
Subtotal of cash generated by operating activities 12,457,485,445.82 10,021,689,566.27
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Konka Group Co., Ltd. Third Quarter Report 2017
Cash paid for goods and services 8,461,788,230.31 9,762,065,352.00
Cash paid to and for employees 706,071,622.42 702,251,202.16
Taxes paid 94,128,545.77 233,896,365.68
Cash used in other operating activities 4,917,518,293.15 2,520,362,805.93
Subtotal of cash used in operating activities 14,179,506,691.65 13,218,575,725.77
Net cash from operating activities -1,722,021,245.83 -3,196,886,159.50
2. Cash generated by or used in investing activities:
Cash generated by disinvestments 180,900,000.00 2,317,433.07
Cash received as investment income 163,986,057.87 33,915,695.73
Net cash generated by disposal of fixed assets, intangible assets
189,841.88 313,107.85
and other long-term assets
Net cash generated by disposal of subsidiaries or other business
units
Cash generated by other investing activities 1,508,699,563.18 9,138,291,591.96
Subtotal of cash generated by investing activities 1,853,775,462.93 9,174,837,828.61
Cash paid to acquire fixed assets, intangible assets and other
51,879,502.86 17,959,270.01
long-term assets
Cash paid for investments 804,349,598.00 14,016,000.00
Net cash paid to acquire subsidiaries and other business units
Cash used in other investing activities 2,361,142,417.74 9,140,572,463.21
Subtotal of cash used in investing activities 3,217,371,518.60 9,172,547,733.22
Net cash from investing activities -1,363,596,055.67 2,290,095.39
3. Cash generated by or used in financing activities:
Cash received as capital contributions
Cash received as borrowings 5,407,249,831.51 4,081,439,101.51
Cash generated by issuance of bonds
Cash generated by other financing activities 141,159,174.39 22,940,000.00
Subtotal of cash generated by financing activities 5,548,409,005.90 4,104,379,101.51
Repayment of borrowings 2,483,733,952.31 244,827,402.55
Cash paid for interest expenses and distribution of dividends
199,132,587.57 41,121,454.13
or profit
Cash used in other financing activities 574,376.15 335,822,516.60
Sub-total of cash used in financing activities 2,683,440,916.03 621,771,373.28
Net cash from financing activities 2,864,968,089.87 3,482,607,728.23
4. Effect of foreign exchange rate changes on cash and cash
-1,161,524.85 11,304,902.99
equivalents
33
Konka Group Co., Ltd. Third Quarter Report 2017
5. Net increase in cash and cash equivalents -221,810,736.48 299,316,567.11
Add: Opening balance of cash and cash equivalents 973,613,753.40 478,267,624.53
6. Closing balance of cash and cash equivalents 751,803,016.92 777,584,191.64
II Auditor’s Report
Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.
The Board of Directors
Konka Group Co., Ltd.
October 27, 2017
34