Konka Group Co., Ltd. Third Quarter Report 2019
KONKA GROUP CO., LTD.
THIRD QUARTER REPORT 2019
2019-102
October 2019
1
Konka Group Co., Ltd. Third Quarter Report 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Konka Group Co., Ltd. (together with its consolidated
subsidiaries, the “Company”, except where the context otherwise requires) hereby guarantee
the factuality, accuracy and completeness of the contents of this Report and its summary, and
shall be jointly and severally liable for any misrepresentations, misleading statements or
material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Fengxi, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Feng Junxiu, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Konka Group Co., Ltd. Third Quarter Report 2019
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2019 31 December 2018 Change (%)
Total assets (RMB) 41,668,497,548.19 32,985,061,889.03 26.33%
Equity attributable to the listed
8,334,866,038.71 8,104,736,790.53 2.84%
company’s shareholders (RMB)
Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue (RMB) 15,644,806,446.79 28.91% 41,681,249,260.63 40.05%
Net profit attributable to the listed
97,725,667.63 11.00% 450,492,688.36 4.81%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -423,396,028.22 -109.27% -1,046,307,661.79 -107.94%
exceptional items (RMB)
Net cash generated from/used in
-- -- -2,572,579,841.94 11.20%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.0406 10.93% 0.1871 4.82%
Diluted earnings per share
0.0406 10.93% 0.1871 4.82%
(RMB/share)
Weighted average return on equity (%) 1.20% 0.10% 5.40% 0.16%
Exceptional gains and losses:
√ Applicable □ Not applicable Unit: RMB
Item Q1-Q3 2019 Note
Gain/Loss arising from disposal of non-current assets (inclusive of impairment allowance
676,642,041.23
write-offs)
Government subsidies recognized in the current period, except for those acquired in the ordinary
course of business or granted at certain quotas or amounts according to the government’s unified 616,080,972.15
standards
Gain/Loss on entrusting others with investments or asset management 134,559,649.39
Gain/Loss on changes in fair value arising from holding of trading financial assets and liabilities
and investment income from disposal of trading financial assets, financial liabilities and
-13,291,264.69
available-for-sale financial assets other than effective hedge business related to the Company’s
normal operating businesses
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Konka Group Co., Ltd. Third Quarter Report 2019
Gain/loss on entrustment loans 1,459,119.47
Other non-operating income and expense other than the above 55,926,248.85
Other gains and losses that meet definition of exceptional gain/loss 240,824,796.53
Less: Income tax effects 98,385,181.09
Non-controlling interests effects (net of tax) 117,016,031.69
Total --
1,496,800,350.15
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or
listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item Amount (RMB) Reason
Tax rebates on Recurrent government subsidies given in the Company’s ordinary course of business at
29,365,991.65
software fixed quotas or amounts as per government’s uniform standards
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders 94,131 Number of preferred shareholders with resumed voting rights (if any) 0
Top 10 shareholders
Shares in pledge
Shareholdin Number of Restricte
Name of shareholder Nature of shareholder or frozen
g percentage shares d shares
Status Shares
OVERSEAS CHINESE TOWN
State-owned legal person 21.75% 523,746,932 0
ENTERPRISES CO., LTD
CITIC SECURITIES
BROKERAGE (HONG KONG) Foreign legal person 7.56% 182,100,202 0
CO., LTD.
HOLY TIME GROUP LIMITED Foreign legal person 2.33% 56,139,100 0
GUOYUAN SECURITIES
Foreign legal person 2.25% 54,203,779 0
BROKER (HK) CO., LTD.
GAOLING FUND,L.P. Foreign legal person 2.19% 52,801,250 0
HONG KONG SECURITIES
Foreign legal person 0.99% 23,763,169 0
CLEARING COMPANY LTD.
CHINA MERCHANTS
State-owned legal person 0.96% 23,060,224 0
SECURITIES (HK) LIMITED
NAM NGAI Foreign natural person 0.88% 21,207,340 0
NATIONAL SOCIAL SECURITY
Other 0.88% 21,099,537 0
FUND NO. 118 PORTFOLIO
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Konka Group Co., Ltd. Third Quarter Report 2019
CHEN WEIQIN Domestic natural person 0.69% 16,656,822 0
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
OVERSEAS CHINESE TOWN
523,746,932 RMB-denominated ordinary stock 523,746,932
ENTERPRISES CO., LTD
CITIC SECURITIES BROKERAGE
182,100,202 Domestically listed foreign stock 182,100,202
(HONG KONG) CO., LTD.
HOLY TIME GROUP LIMITED 56,139,100 Domestically listed foreign stock 56,139,100
GUOYUAN SECURITIES BROKER
54,203,779 Domestically listed foreign stock 54,203,779
(HK) CO., LTD.
GAOLING FUND,L.P. 52,801,250 Domestically listed foreign stock 52,801,250
HONG KONG SECURITIES
23,763,169 RMB-denominated ordinary stock 23,763,169
CLEARING COMPANY LTD.
CHINA MERCHANTS SECURITIES
23,060,224 Domestically listed foreign stock 23,060,224
(HK) LIMITED
NAM NGAI 21,207,340 Domestically listed foreign stock 21,207,340
NATIONAL SOCIAL SECURITY
21,099,537 RMB-denominated ordinary stock 21,099,537
FUND NO. 118 PORTFOLIO
CHEN WEIQIN 16,656,822 RMB-denominated ordinary stock 16,656,822
Jialong Investment Limited, a wholly-funded subsidiary of the Company’s first majority
shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for short), holds
Related or acting-in-concert 180,001,110 and 18,360,000 common shares in the Company respectively through CITIC
parties among shareholders Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK) Limited.
above Jialong Investment Limited and Overseas Chinese Town Enterprises Co. are parties acting in
concert. Other than that, it is unknown whether the other shareholders are related parties or
acting-in-concert parties or not.
Top 10 ordinary shareholders
Chen Weiqin holds 16,656,822 A-shares in the Company through his account of collateral
involved in securities margin
securities for margin trading in CITIC Securities Company Limited.
trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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Konka Group Co., Ltd. Third Quarter Report 2019
Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
(I) In the Reporting Period, the Company carried on with its long-term development strategy of
“Technology + Industry + Park”, accelerating its strategic transformation and upgrade with respect
to “One Centric Orientation, Two Development Paths, Three Development Strategies and Four
Business Groups” and achieved the following fruits.
1. During the Reporting Period, the Company continued to increase its investment in R&D,
thoroughly research and develop core technologies and improve competitiveness of main business.
On the one hand, the Company actively made deep application of advanced technologies such as AI,
8K and 5G in product research and development and successively launched a series of core
technology products such as 8K TV, panoramic AI TV and OLED TV. On the other hand, the
Company further strengthened its technology layout in new display technology, new materials,
energy saving and environment protection. It set up academician workstation and semi-conductor
and optoelectronics research institute intending to drive high-quality development of the Company
through innovations and breakthroughs in core technologies.
2. In accordance with the long-term development strategy of “Technology + Industry + Park”,
during the Reporting Period, the Company successfully delisted lands used for projects of Chuzhou
Minghu Health Community, Dongguan City’s New Plant, Chongqing Konka Semi-conductor
Optoelectronics Industrial Park, Yantai Health Accelerator Industrial Park and Haimen Headquarters
for Eastern China with smooth proceeding of other projects of industrial park.
3. Due to the rapid development of emerging businesses, for Q1~Q3 of 2019, the Company realized
the operating revenue of RMB 41.68 billion with an increase of 40.05% compared with that of the
same period of last year.
(II) Changes in Key Financial Statement Line Items
Unit: RMB’0,000 (in RMB ten thousand yuan)
Item 30 September 2019 1 January 2019 Change Change (%) Main reason for change
Remarkable increase in business in
Prepayments 377,035.20 103,697.92 273,337.28 263.59% relation to environmental protection and
supply chain management
Non-current finanical Newly added investments in
154,876.44 54,823.00 100,053.44 182.50%
assets opto-electronics industry fund
Issue of corporate bonds of RMB5 billion
Interests payable 14,989.11 2,723.06 12,266.05 450.45%
in this year
Increase in newly added long-term
Long-term borrowings 181,269.57 44,500.00 136,769.57 307.35%
borrowings of subsidiaries
Item Q1~Q3 2019 Q1~Q3 2018 Change Change (%) Main reason for change
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Konka Group Co., Ltd. Third Quarter Report 2019
YoY increase in operating revenue and
Operating revenue 4,168,124.93 2,976,172.99 1,191,951.94 40.05% cost of sales regarding supply chain
management business for the Reporting
Period and newly added business in
Cost of sales 3,960,148.07 2,806,358.27 1,153,789.80 41.11%
relation to environmental protection
Continuously enhancement of R&D
R&D expense 31,910.23 22,674.73 9,235.50 40.73%
inputs in this year
Disposal of assets by subsidiaries in the
Asset disposal income 29,370.58 6,357.51 23,013.07 361.98%
Reporting Period
Net cash generated
Increase in investing of fixed assets and
from/used in investing -101,394.11 -73,803.61 -27,590.50 -37.38%
intangible assets in this year
activities
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
1. The lands have been obtained for projects of Chuzhou Minghu Health Community, Dongguan
City’s New Plant, Chongqing Konka Semi-conductor Optoelectronics Industrial Park, Yantai
Health Accelerator Industrial Park and Haimen Headquarters for Eastern China during the
Reporting Period. As for Konka Smart Terminals High-Tech Industrial Park in Yibin, Konka
Electronics Technology Industrial Park in Suining, Konka Smart Appliances and Equipment
Industrial Park in Chuzhou and Lankao Environmental Protection Business Industrial Base, the
relevant construction is under the preparation or in progress.
2. In 2018 Launch of establishing the Orient Konka Industrial M&A Fund respectively holds
11.77% of shares in Jiangxi Yahua Electronic Materials Co., Ltd., 2.75% of shares in Shenzhen
Genew Technologies Co., Ltd., 3.74% of shares in Roshow Technology Co., Ltd., and 11.73% of
shares in Shenzhen Gren RF Communication Co., Ltd. through investments.
3. Private placement of corporate bonds of RMB0.6 billion: The matter has been reviewed and
approved in the general meeting of the Company, and the preparation for relevant declaration
materials is underway.
Website link to
Announcement on significant event Disclosure date
announcement
Announcement on the Issuance Results of the Private Placement of Corporate
24 July 2019
Bonds (Phase III) in 2019
Announcement on Receiving the Notice of CSRC on the examination of the
10 September 2019
Application for Resumption of Administrative License http://www.cninfo.c
Announcement on Completion of Changes in Registration for Transfer of the 51% om.cn/new/index
27 September 2019
Equity Interests in Chuzhou Kangjin Health Industrial Development Co., Ltd.
The Completion of the Registration of Chongqing Konka Semiconductor
9 October 2019
Opto-electronics Research Institute
Progress of any share repurchase:
□ Applicable √ Not applicable
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Konka Group Co., Ltd. Third Quarter Report 2019
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Wealth Management Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Date Way of Communication Type of communication party Index to main information communicated
28 June 2019 On-site meeting Institution
3 July 2019 On-site meeting Institution
17 July 2019 On-site meeting Institution http://www.cninfo.com.cn/new/index
20 August 2019 On-site meeting Institution
11 September 2019 On-site meeting Institution
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Konka Group Co., Ltd. Third Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
30 September 2019
Unit: RMB
Item 30 September 2019 31 December 2018
Current assets:
Monetary capital 6,994,794,669.87 4,348,144,129.53
Settlement reserve
Interbank loans granted
Trading financial assets 61,494,666.97
Financial assets at fair value through profit or loss 5,464,984.92
Derivative financial assets
Notes receivable 1,822,756,223.18 3,329,711,954.15
Accounts receivable 5,384,468,569.95 4,458,053,586.42
Accounts receivable financing 30,428,416.44
Prepayments 3,770,352,017.29 1,036,979,167.56
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,177,221,079.26 410,804,180.50
Including: Interests receivable 5,833,162.55 4,059,682.40
Dividends receivable 547,848.62 547,848.62
Financial assets purchased under resale agreements
Inventories 6,471,061,158.11 5,487,605,227.05
Contractual assets
Assets classified as held for sale
Current portion of non-current assets 51,791,485.91 22,318,208.13
Other current assets 1,524,910,157.61 2,744,216,141.98
Total current assets 27,289,278,444.59 21,843,297,580.24
Non-current assets:
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Konka Group Co., Ltd. Third Quarter Report 2019
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 633,664,881.33
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables 412,670,698.02 390,793,038.05
Long-term equity investments 2,964,002,398.80 2,637,780,825.53
Investments in other equity instruments 19,140,214.36
Other non-current financial assets 1,548,764,400.00
Investment property 206,600,900.02 210,824,355.72
Fixed assets 2,556,567,268.89 2,410,226,495.81
Construction in progress 3,136,285,379.56 2,176,871,530.80
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 1,181,935,439.32 737,776,686.34
R&D expense
Goodwill 855,691,423.75 855,691,423.75
Long-term prepaid expense 106,941,419.03 111,223,426.77
Deferred income tax assets 870,066,949.65 639,433,954.30
Other non-current assets 520,552,612.20 337,477,690.39
Total non-current assets 14,379,219,103.60 11,141,764,308.79
Total assets 41,668,497,548.19 32,985,061,889.03
Current liabilities:
Short-term borrowings 13,813,454,740.84 13,884,132,931.63
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities
Financial liabilities at fair value through profit or loss 2,459,603.25
Derivative financial liabilities
Notes payable 1,110,673,136.13 862,330,689.47
Accounts payable 5,197,990,516.38 4,362,723,050.33
Advances from customers 1,180,010,394.07 723,227,529.20
Contractual liabilities
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Konka Group Co., Ltd. Third Quarter Report 2019
Financial assets sold under repurchase agreements
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Payroll payable 230,972,629.89 376,506,567.71
Taxes payable 381,795,313.44 288,004,192.44
Other payables 2,230,692,538.75 2,024,657,277.74
Including: Interest payable 149,891,095.43 27,230,631.41
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets classified as
held for sale
Current portion of non-current liabilities 1,353,399.25 151,792,404.13
Other current liabilities
Total current liabilities 24,146,942,668.75 22,675,834,245.90
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 1,812,695,729.90 445,000,000.00
Bonds payable 4,986,333,857.47
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 342,932,515.78 128,374,597.41
Long-term payroll payable 5,617,330.28 8,792,614.98
Provisions 1,597,591.51 21,772,898.37
Deferred income 139,556,366.01 112,899,128.24
Deferred income tax liabilities 140,317,722.60 141,020,093.34
Other non-current liabilities
Total non-current liabilities 7,429,051,113.55 857,859,332.34
Total liabilities 31,575,993,782.30 23,533,693,578.24
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
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Konka Group Co., Ltd. Third Quarter Report 2019
Perpetual bonds
Capital reserves 237,761,961.98 208,356,624.21
Less: Treasury stock
Other comprehensive income -16,738,417.62 -10,538,219.08
Special reserves 110,216.01
Surplus reserves 1,227,564,785.19 1,227,564,785.19
General reserve
Retained earnings 4,478,222,085.15 4,271,408,192.21
Total equity attributable to owners of the Company as the
8,334,866,038.71 8,104,736,790.53
parent
Non-controlling interests 1,757,637,727.18 1,346,631,520.26
Total owners’ equity 10,092,503,765.89 9,451,368,310.79
Total liabilities and owners’ equity 41,668,497,548.19 32,985,061,889.03
Legal representative: Liu Fengxi CFO: Li Chunlei Head of the financial department: Feng Junxiu
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 September 2019 31 December 2018
Current assets:
Monetary capital 2,851,530,664.06 2,124,335,536.69
Trading financial assets 61,494,666.97
Financial assets at fair value through profit or loss 5,464,984.92
Derivative financial assets
Notes receivable 1,296,842,782.41 2,181,466,683.90
Accounts receivable 9,790,478,715.40 7,427,246,429.42
Accounts receivable financing
Prepayments 1,555,701,408.42 1,019,335,571.49
Other receivables 8,754,780,182.80 6,667,463,126.57
Including: Interest receivable 4,496,389.55 5,769,663.24
Dividends receivable
Inventories 328,176,805.47 254,225,716.41
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 98,176,190.78 77,249,216.99
Total current assets 24,737,181,416.31 19,756,787,266.39
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Konka Group Co., Ltd. Third Quarter Report 2019
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 326,164,881.33
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 6,841,301,700.53 6,182,962,034.71
Investments in other equity instruments 14,440,214.36
Other non-current financial assets 250,230,000.00
Investment property 206,600,900.02 210,824,355.72
Fixed assets 448,222,683.16 462,721,018.30
Construction in progress 232,303,682.48 157,356,696.30
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 80,820,208.46 83,593,959.11
R&D expense
Goodwill
Long-term prepaid expense 66,565,616.18 80,388,949.97
Deferred income tax assets 757,082,868.26 516,879,201.66
Other non-current assets 20,000,000.00 20,000,000.00
Total non-current assets 8,917,567,873.45 8,040,891,097.10
Total assets 33,654,749,289.76 27,797,678,363.49
Current liabilities:
Short-term borrowings 9,193,116,148.28 8,179,564,987.70
Trading financial liabilities
Financial liabilities at fair value through profit or loss 2,459,603.25
Derivative financial liabilities
Notes payable 1,854,390,903.32 3,513,157,955.43
Accounts payable 8,326,957,968.42 6,477,055,955.65
Advances from customers 367,080,069.26 306,650,717.69
Contractual liabilities
Payroll payable 75,048,950.85 146,199,496.44
Taxes payable 1,850,089.08 10,913,871.30
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Konka Group Co., Ltd. Third Quarter Report 2019
Other payables 2,625,799,680.02 2,011,494,378.65
Including: Interest payable 146,784,607.53 24,158,666.48
Dividends payable
Liabilities directly associated with assets classified as held
for sale
Current portion of non-current liabilities 40,000,000.00
Other current liabilities
Total current liabilities 22,444,243,809.23 20,687,496,966.11
Non-current liabilities:
Long-term borrowings 346,995,729.90 245,000,000.00
Bonds payable 4,986,333,857.47
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions 206,591.51 206,591.51
Deferred income 69,127,582.04 75,705,476.93
Deferred income tax liabilities 751,345.42
Other non-current liabilities
Total non-current liabilities 5,402,663,760.92 321,663,413.86
Total liabilities 27,846,907,570.15 21,009,160,379.97
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 114,018,066.79 114,018,066.79
Less: Treasury stock
Other comprehensive income -1,182,217.31 -1,182,217.31
Special reserves
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 2,059,495,676.94 3,040,171,940.85
Total owners’ equity 5,807,841,719.61 6,788,517,983.52
Total liabilities and owners’ equity 33,654,749,289.76 27,797,678,363.49
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Konka Group Co., Ltd. Third Quarter Report 2019
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Revenue 15,644,806,446.79 12,136,315,129.29
Including: Operating revenue 15,644,806,446.79 12,136,315,129.29
Interest income
Premium income
Handling charge and commission income
2. Costs and expenses 16,025,188,376.66 12,507,069,794.98
Including: Cost of sales 14,927,438,285.30 11,621,326,279.61
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as policy reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 18,882,712.84 22,256,789.30
Selling expense 537,449,008.46 511,335,968.05
Administrative expense 214,581,564.94 194,171,683.61
R&D expense 161,891,918.04 89,738,422.31
Finance costs 164,944,887.08 68,240,652.10
Including: Interest expense 286,311,826.27 266,966,287.29
Interest income 28,365,849.61 98,892,687.14
Add: Other income 298,288,604.77 141,693,252.31
Return on investment (“-” for loss) 236,696,834.29 270,593,341.32
Including: Share of profit or loss of joint ventures
-17,103,633.76 7,581,610.96
and associates
Derecognition income of financial assets measured
at amortized cost
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 10,085,276.33
Credit impairment loss (“-” for loss) -39,670,359.96
Assets impairment loss (“-” for loss) 2,261,331.07 -6,112,105.62
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Konka Group Co., Ltd. Third Quarter Report 2019
Asset disposal income (“-” for loss) -147,012.51
3. Operating profit (“-” for loss) 117,194,480.30 45,358,086.14
Add: Non-operating income 41,224,843.98 15,634,997.65
Less: Non-operating expense 1,809,247.39 5,920,162.45
4. Profit before tax (“-” for loss) 156,610,076.89 55,072,921.34
Less: Income tax expense 4,284,277.99 -115,426,383.66
5. Net profit (“-” for net loss) 152,325,798.90 170,499,305.00
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
152,325,798.90 170,499,305.00
loss)
5.1.2 Net profit from discontinued operations (“-” for
net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company
97,725,667.63 88,041,649.48
as the parent
5.2.1 Net profit attributable to non-controlling interests 54,600,131.27 82,457,655.52
6. Other comprehensive income, net of tax -757,628.66 -12,097,422.41
Attributable to owners of the Company as the parent -2,540,311.85 -13,373,312.59
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined
benefit pension schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in
other equity instruments
6.1.4 Changes in the fair value of the company’s
credit risks
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -2,540,311.85 -13,373,312.59
6.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of investments in
other debt obligations
6.2.3 Gain/Loss on changes in the fair value of
available-for-sale financial assets
6.2.4 Other comprehensive income arising from the
reclassification of financial assets
6.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial
16
Konka Group Co., Ltd. Third Quarter Report 2019
assets
6.2.6 Allowance for credit impairments in
investments in other debt obligations
6.2.7 Reserve for cash flow hedges
6.2.8 Differences arising from the translation of
-2,540,311.85 -13,373,312.59
foreign currency-denominated financial statements
6.2.9 Other
Attributable to non-controlling interests 1,782,683.19 1,275,890.18
7. Total comprehensive income 151,568,170.24 158,401,882.59
Attributable to owners of the Company as the parent 95,185,355.78 74,668,336.89
Attributable to non-controlling interests 56,382,814.46 83,733,545.70
8. Earnings per share
8.1 Basic earnings per share 0.0406 0.0366
8.2 Diluted earnings per share 0.0406 0.0366
Legal representative: Liu Fengxi CFO: Li Chunlei Head of the financial department: Feng Junxiu
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Operating revenue 3,420,624,874.36 4,440,642,646.78
Less: Cost of sales 3,398,476,539.34 4,461,216,408.91
Taxes and surcharges 2,196,972.53 3,290,938.91
Selling expense 289,700,691.74 318,949,025.34
Administrative expense 97,690,345.27 116,016,183.63
R&D expense 11,583,116.72 26,533,247.55
Finance costs 51,277,210.40 42,077,470.06
Including: Interest expense 221,815,070.42 157,525,819.04
Interest income 107,028,598.07 47,340,463.92
Add: Other income 16,519,680.07 37,349,655.22
Return on investment (“-” for loss) 151,953,623.56 282,414,798.36
Including: Share of profit or loss of joint ventures
-7,857,057.42 -7,560,003.70
and associates
Derecognition income of financial assets measured
at amortized cost
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 10,085,276.33
Credit impairment loss (“-” for loss) -20,000,000.00
17
Konka Group Co., Ltd. Third Quarter Report 2019
Assets impairment loss (“-” for loss)
Asset disposal income (“-” for loss) 607.74
2. Operating profit (“-” for loss) -281,826,698.01 -197,590,289.97
Add: Non-operating income 185,713.17 966,927.34
Less: Non-operating expense 169,334.48 285,098.31
3. Profit before tax (“-” for loss) -281,810,319.32 -196,908,460.94
Less: Income tax expense -65,507,220.62 -77,096,924.08
4. Net profit (“-” for net loss) -216,303,098.70 -119,811,536.86
4.1 Net profit from continuing operations (“-” for net
-216,303,098.70 -119,811,536.86
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax 5,222,526.42
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit pension schemes
5.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other
equity instruments
5.1.4 Changes in the fair value of the company’s credit
risks
5.1.5 Other
5.2 Items that will be reclassified to profit or loss 5,222,526.42
5.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Gain/Loss on changes in the fair value of
4,296,185.76
available-for-sale financial assets
5.2.4 Other comprehensive income arising from the
reclassification of financial assets
5.2.5 Gain/Loss arising from the reclassification of
held-to-maturity investments to available-for-sale financial
assets
5.2.6 Allowance for credit impairments in investments
in other debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the translation of foreign
926,340.66
currency-denominated financial statements
18
Konka Group Co., Ltd. Third Quarter Report 2019
5.2.9 Other
6. Total comprehensive income -216,303,098.70 -114,589,010.44
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Revenue 41,681,249,260.63 29,761,729,899.11
Including: Operating revenue 41,681,249,260.63 29,761,729,899.11
Interest income
Premium income
Handling charge and commission income
2. Operating costs and expenses 42,723,961,198.82 30,481,274,468.11
Including: Cost of sales 39,601,480,656.43 28,063,582,724.87
Interest expense
Handling charge and commission expense
Surrenders
Net claims paid
Net amount provided as policy reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 56,271,805.11 49,903,363.92
Selling expense 1,605,394,922.82 1,614,517,042.56
Administrative expense 562,506,207.37 421,990,456.18
R&D expense 319,102,256.98 226,747,319.07
Finance costs 579,205,350.11 104,533,561.51
Including: Interest expense 815,995,662.79 495,028,664.94
Interest income 147,039,381.38 238,028,339.28
Add: Other income 642,173,576.13 264,719,535.81
Investment income (“-” for loss) 795,857,862.21 802,351,913.03
Including: Share of profit or loss of joint ventures
-8,562,359.20 13,656,793.55
and associates
Derecognition income of financial assets measured
at amortized cost
19
Konka Group Co., Ltd. Third Quarter Report 2019
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -3,005,381.67 69,940,688.81
Credit impairment loss (“-” for loss) -89,146,583.72
Assets impairment loss (“-” for loss) -9,456,436.22 -65,664,206.03
Asset disposal income (“-” for loss) 293,705,840.64 63,575,092.87
3. Operating profit (“-” for loss) 587,416,939.18 415,378,455.49
Add: Non-operating income 63,494,286.07 42,852,490.62
Less: Non-operating expense 5,278,988.90 11,871,912.02
4. Profit before tax (“-” for loss) 645,632,236.35 446,359,034.09
Less: Income tax expense 14,595,671.18 -132,872,432.79
5. Net profit (“-” for net loss) 631,036,565.17 579,231,466.88
5.1 By operating continuity (“-” for net loss)
5.1.1 Net profit from continuing operations (“-” for net
631,036,565.17 579,231,466.88
loss)
5.1.2 Net profit from discontinued operations (“-” for
net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company
450,492,688.36 429,834,688.51
as the parent
5.2 2. Net profit attributable to non-controlling
180,543,876.81 149,396,778.37
interests
6. Other comprehensive income, net of tax -3,865,740.99 -16,498,381.12
Attributable to owners of the Company as the parent -6,200,198.54 -18,225,153.33
6.1 Items that will not be reclassified to profit or loss -4,800,000.00
6.1.1 Changes in net liabilities or assets caused by
remeasurements on defined benefit pension schemes
6.1.2 Share of other comprehensive income of
investees that will not be reclassified to profit or loss under
equity method
6.1.3 Changes in the fair value of investments in
-4,800,000.00
other equity instruments
6.1.4 Changes in the fair value of the company’s
credit risks
6.1.5 Other
6.2 Items that may subsequently be reclassified to
-1,400,198.54 -18,225,153.33
profit or loss
20
Konka Group Co., Ltd. Third Quarter Report 2019
6.2.1 Share of other comprehensive income of
investees that will be reclassified to profit or loss under
equity method
6.2.2 Changes in the fair value of investments in
other debt obligations
6.2.3 Gain/Loss on changes in fair value of
-31,342.08
available-for-sale financial assets
6.2.4. Other comprehensive income arising from the
reclassification of financial assets
6.2.5 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial
assets
6.2.6 Allowance for credit impairments in
investments in other debt obligations
6.2.7 Reserve for cash flow hedges
6.2.8 Differences arising from translation of foreign
-1,400,198.54 -18,193,811.25
currency-denominated financial statements
6.2.9 Other
Attributable to non-controlling interests 2,334,457.55 1,726,772.21
7. Total comprehensive income 627,170,824.18 562,733,085.76
Attributable to owners of the Company as the parent 444,292,489.82 411,609,535.18
Attributable to non-controlling interests 182,878,334.36 151,123,550.58
8. Earnings per share
8.1 Basic earnings per share 0.1871 0.1785
8.2 Diluted earnings per share 0.1871 0.1785
Legal representative: Liu Fengxi CFO: Li Chunlei Head of the financial department: Feng Junxiu
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating revenue 8,788,646,584.76 10,997,211,162.08
Less: Cost of sales 8,662,626,032.49 10,419,241,341.62
Taxes and surcharges 5,247,218.40 13,586,744.27
Selling expense 892,638,143.13 1,115,535,743.30
Administrative expense 214,332,248.59 241,930,804.62
R&D expense 33,467,367.19 128,379,273.19
Finance costs 315,092,491.81 188,923,238.66
Including: Interest expense 706,461,849.17 445,544,643.70
21
Konka Group Co., Ltd. Third Quarter Report 2019
Interest income 332,427,396.10 160,404,469.05
Add: Other income 42,403,642.65 79,741,765.34
Investment income (“-” for loss) 337,929,362.44 1,441,862,076.64
Including: Share of profit or loss of joint ventures
-3,928,528.71 5,680,179.60
and associates
Derecognition income of financial assets measured
at amortized cost
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -3,005,381.67 69,940,688.81
Credit impairment loss (“-” for loss) -26,660,947.01
Assets impairment loss (“-” for loss) -3,172,282.22 -36,873,991.62
Asset disposal income (“-” for loss) 200.00 19,557.06
2. Operating profit (“-” for loss) -987,262,322.66 444,304,112.65
Add: Non-operating income 1,708,572.98 14,841,432.79
Less: Non-operating expense 1,126,692.02 5,725,462.45
3. Profit before tax (“-” for loss) -986,680,441.70 453,420,082.99
Less: Income tax expense -240,955,012.03 -164,010,095.13
4. Net profit (“-” for net loss) -745,725,429.67 617,430,178.12
4.1 Net profit from continuing operations (“-” for net
-745,725,429.67 617,430,178.12
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax 5,546,547.44
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes in net liabilities or assets caused by
remeasurements on defined benefit pension schemes
5.1.2 Share of other comprehensive income of
investees that will not be reclassified to profit or loss under
equity method
5.1.3 Changes in the fair value of investments in other
equity instruments
5.1.4 Changes in the fair value of the company’s credit
risks
5.1.5 Other
5.2 Items that may subsequently be reclassified to profit
5,546,547.44
or loss
5.2.1 Share of other comprehensive income of
22
Konka Group Co., Ltd. Third Quarter Report 2019
investees that will be reclassified to profit or loss under
equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Gain/Loss on changes in fair value of
4,296,185.76
available-for-sale financial assets
5.2.4 Other comprehensive income arising from the
reclassification of financial assets
5.2.5 Gain/Loss arising from reclassification of
held-to-maturity investments to available-for-sale financial
assets
5.2.6 Allowance for credit impairments in investments
in other debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from translation of foreign
1,250,361.68
currency-denominated financial statements
5.2.9 Other
6. Total comprehensive income -745,725,429.67 622,976,725.56
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
41,460,695,427.76 24,472,986,972.47
services
Net increase in customer deposits and interbank deposits
Net increase in borrowings from central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
23
Konka Group Co., Ltd. Third Quarter Report 2019
Tax rebates 596,940,645.18 312,128,742.81
Cash generated from other operating activities 2,810,409,063.92 2,865,828,267.19
Subtotal of cash generated from operating activities 44,868,045,136.86 27,650,943,982.47
Payments for commodities and services 42,633,289,918.22 24,117,693,794.31
Net increase in loans and advances to customers
Net increase in deposits in central bank and in interbank
loans granted
Payments for claims on original insurance contracts
Net increase in interbank loans granted
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 1,354,791,311.98 1,235,221,504.02
Taxes paid 604,891,331.46 1,593,043,900.48
Cash used in other operating activities 2,847,652,417.14 3,601,969,084.22
Subtotal of cash used in operating activities 47,440,624,978.80 30,547,928,283.03
Net cash generated from/used in operating activities -2,572,579,841.94 -2,896,984,300.56
2. Cash flows from investing activities:
Proceeds from disinvestment 222,405,975.50 45,531,154.28
Investment income 109,794,038.16 100,982,942.46
Net proceeds from disposal of fixed assets, intangible
123,083,476.75 1,851,025.13
assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other
90,801,480.11 141,294,742.26
business units
Cash generated from other investing activities 1,757,416,878.42 1,392,285,000.00
Subtotal of cash generated from investing activities 2,303,501,848.94 1,681,944,864.13
Payments for acquisition of fixed assets, intangible assets
1,280,750,151.25 267,022,282.19
and other long-lived assets
Payments for investments 1,236,659,360.00 450,546,156.00
Net increase in pledged loans granted
Net payments for acquisition of subsidiaries and other
927,532,476.11
business units
Cash used in other investing activities 800,033,420.00 774,880,000.00
Subtotal of cash used in investing activities 3,317,442,931.25 2,419,980,914.30
Net cash generated from/used in investing activities -1,013,941,082.31 -738,036,050.17
3. Cash flows from financing activities:
Capital contributions received 316,350,268.17 189,790,594.60
24
Konka Group Co., Ltd. Third Quarter Report 2019
Including: Capital contributions by non-controlling
316,350,268.17 189,790,594.60
interests to subsidiaries
Increase in borrowings obtained 21,816,836,119.64 11,340,498,767.13
Cash generated from other financing activities 662,446,627.50 1,023,076.93
Subtotal of cash generated from financing activities 22,795,633,015.31 11,531,312,438.66
Repayment of borrowings 15,301,413,298.24 6,369,248,011.05
Payments for interest and dividends 674,111,965.45 668,095,998.12
Including: Dividends paid by subsidiaries to
33,607,322.95 1,629,621.25
non-controlling interests
Cash used in other financing activities 534,292,325.64 77,087,550.43
Subtotal of cash used in financing activities 16,509,817,589.33 7,114,431,559.60
Net cash generated from/used in financing activities 6,285,815,425.98 4,416,880,879.06
4. Effect of foreign exchange rate changes on cash and cash
7,020,688.15 22,282,446.23
equivalents
5. Net increase in cash and cash equivalents 2,706,315,189.88 804,142,974.56
Add: Cash and cash equivalents, beginning of the period 3,434,149,481.72 3,097,899,703.76
6. Cash and cash equivalents, end of the period 6,140,464,671.60 3,902,042,678.32
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
15,276,237,884.82 12,987,769,338.60
services
Tax rebates 48,371,777.09 130,863,528.45
Cash generated from other operating activities 9,241,152,305.86 2,759,126,679.00
Subtotal of cash generated from operating activities 24,565,761,967.77 15,877,759,546.05
Payments for commodities and services 13,228,154,713.94 11,185,702,814.55
Cash paid to and for employees 538,054,123.81 713,115,942.78
Taxes paid 44,781,446.37 1,158,672,182.51
Cash used in other operating activities 10,978,851,545.86 3,967,958,429.50
Subtotal of cash used in operating activities 24,789,841,829.98 17,025,449,369.34
Net cash generated from/used in operating activities -224,079,862.21 -1,147,689,823.29
2. Cash flows from investing activities:
Proceeds from disinvestment 166,685,882.00 224,007,998.00
Investment income 96,058,958.81 111,276,583.85
Net proceeds from disposal of fixed assets, intangible 255,200.79 172,255.79
25
Konka Group Co., Ltd. Third Quarter Report 2019
assets and other long-lived assets
Net proceeds from disposal of subsidiaries or other
business units
Cash generated from other investing activities 777,615,551.82 1,564,279,083.79
Subtotal of cash generated from investing activities 1,040,615,593.42 1,899,735,921.43
Payments for acquisition of fixed assets, intangible assets
59,662,429.02 72,123,850.33
and other long-lived assets
Payments for investments 703,450,000.00 2,022,767,387.50
Net payments for acquisition of subsidiaries and other
business units
Cash used in other investing activities 5,137,623,500.00 922,780,798.39
Subtotal of cash used in investing activities 5,900,735,929.02 3,017,672,036.22
Net cash generated from/used in investing activities -4,860,120,335.60 -1,117,936,114.79
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained 11,517,566,793.66 4,899,799,364.16
Cash generated from other financing activities 2,500,000.00
Subtotal of cash generated from financing activities 11,520,066,793.66 4,899,799,364.16
Repayment of borrowings 4,960,897,423.76 1,502,962,221.73
Payments for interest and dividends 561,130,301.68 640,026,892.15
Cash used in other financing activities 10,922,037.42 435,233,291.92
Subtotal of cash used in financing activities 5,532,949,762.86 2,578,222,405.80
Net cash generated from/used in financing activities 5,987,117,030.80 2,321,576,958.36
4. Effect of foreign exchange rate changes on cash and cash
-10,762,185.92 -41,200,286.25
equivalents
5. Net increase in cash and cash equivalents 892,154,647.07 14,750,734.03
Add: Cash and cash equivalents, beginning of the period 1,497,794,555.85 1,743,269,944.67
6. Cash and cash equivalents, end of the period 2,389,949,202.92 1,758,020,678.70
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Execution of any New
Standards Governing Financial Instruments, Revenue or Leases from 2019
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
26
Konka Group Co., Ltd. Third Quarter Report 2019
Monetary capital 4,348,144,129.53 4,348,144,129.53
Trading financial assets Inapplicable 66,959,651.89 66,959,651.89
Financial assets at fair value through
5,464,984.92 Inapplicable -5,464,984.92
profit or loss
Notes receivable 3,329,711,954.15 3,136,050,327.88 -193,661,626.27
Accounts receivable 4,458,053,586.42 4,457,458,904.32 -594,682.10
Accounts receivable financing Inapplicable 193,661,626.27 193,661,626.27
Prepayments 1,036,979,167.56 1,036,979,167.56
Other receivables 410,804,180.50 408,514,607.98 -2,289,572.52
Including: Interest receivable 4,059,682.40 4,059,682.40
Dividends receivable 547,848.62 547,848.62
Inventories 5,487,605,227.05 5,487,605,227.05
Current portion of non-current assets 22,318,208.13 22,318,208.13
Other current assets 2,744,216,141.98 2,744,216,141.98
Total current assets 21,843,297,580.24 21,901,907,992.59 58,610,412.35
Non-current assets:
Available-for-sale financial assets 633,664,881.33 Inapplicable -633,664,881.33
Long-term receivables 390,793,038.05 390,793,038.05
Long-term equity investments 2,637,780,825.53 2,637,780,825.53
Investments in other equity
Inapplicable 23,940,214.36 23,940,214.36
instruments
Other non-current financial assets Inapplicable 548,230,000.00 548,230,000.00
Investment property 210,824,355.72 210,824,355.72
Fixed assets 2,410,226,495.81 2,410,226,495.81
Construction in progress 2,176,871,530.80 2,176,871,530.80
Intangible assets 737,776,686.34 737,776,686.34
Goodwill 855,691,423.75 855,691,423.75
Long-term prepaid expense 111,223,426.77 111,223,426.77
Deferred income tax assets 639,433,954.30 639,433,954.30
Other non-current assets 337,477,690.39 337,477,690.39
Total non-current assets 11,141,764,308.79 11,080,269,641.82 -61,494,666.97
Total assets 32,985,061,889.03 32,982,177,634.41 -2,884,254.62
Current liabilities:
Short-term borrowings 13,884,132,931.63 13,884,132,931.63
Trading financial liabilities Inapplicable 2,459,603.25 2,459,603.25
27
Konka Group Co., Ltd. Third Quarter Report 2019
Financial liabilities at fair value
2,459,603.25 Inapplicable -2,459,603.25
through profit or loss
Notes payable 862,330,689.47 862,330,689.47
Accounts payable 4,362,723,050.33 4,362,723,050.33
Advances from customers 723,227,529.20 723,227,529.20
Payroll payable 376,506,567.71 376,506,567.71
Taxes payable 288,004,192.44 288,004,192.44
Other payables 2,024,657,277.74 2,024,657,277.74
Including: Interest payable 27,230,631.41 27,230,631.41
Current portion of non-current
151,792,404.13 151,792,404.13
liabilities
Total current liabilities 22,675,834,245.90 22,675,834,245.90
Non-current liabilities:
Long-term borrowings 445,000,000.00 445,000,000.00
Long-term payables 128,374,597.41 128,374,597.41
Long-term payroll payable 8,792,614.98 8,792,614.98
Provisions 21,772,898.37 21,772,898.37
Deferred income 112,899,128.24 112,899,128.24
Deferred income tax liabilities 141,020,093.34 141,020,093.34
Total non-current liabilities 857,859,332.34 857,859,332.34
Total liabilities 23,533,693,578.24 23,533,693,578.24
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Capital reserves 208,356,624.21 208,356,624.21
Other comprehensive income -10,538,219.08 -10,538,219.08
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 4,271,408,192.21 4,268,523,937.59 -2,884,254.62
Total equity attributable to owners of the
8,104,736,790.53 8,101,852,535.91 -2,884,254.62
Company as the parent
Non-controlling interests 1,346,631,520.26 1,346,631,520.26
Total owners’ equity 9,451,368,310.79 9,448,484,056.17 -2,884,254.62
Total liabilities and owners’ equity 32,985,061,889.03 32,982,177,634.41 -2,884,254.62
Notes for adjustment
The Company has implemented the New Financial Instrument Standard since January 1, 2019,
respectively measured “financial assets at fair value through profit or loss” as
“financial assets held for trading”, measured “available-for-sale financial assets” as
28
Konka Group Co., Ltd. Third Quarter Report 2019
“financial assets held for trading” ， “other non-current financial assets” and “other equity
instrument”, measured “notes measured at the fair value with its changes included into other
comprehensive income” as “accounts receivable financing”, measured “financial liabilities at fair
value through profit or loss” as “trading financial liabilities”.
According to the convergence rules of the New Financial Instrument Standards, the Company does
not need to restate the previous comparables, and the information presented in the financial
statements is not inconsistent with the requirements of the new standard. The difference between the
original book value of the financial instrument and the new book value on the date of
implementation of the standard is included in the retained earnings at the beginning of 2019.
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 2,124,335,536.69 2,124,335,536.69
Trading financial assets Inapplicable 66,959,651.89 66,959,651.89
Financial assets at fair value through
5,464,984.92 Inapplicable -5,464,984.92
profit or loss
Notes receivable 2,181,466,683.90 2,181,166,683.90 -300,000.00
Accounts receivable 7,427,246,429.42 7,426,742,836.53 -503,592.89
Accounts receivable financing Inapplicable 300,000.00 300,000.00
Prepayments 1,019,335,571.49 1,019,335,571.49
Other receivables 6,667,463,126.57 6,665,839,214.30 -1,623,912.27
Including: Interest receivable 5,769,663.24 5,769,663.24
Inventories 254,225,716.41 254,225,716.41
Other current assets 77,249,216.99 77,249,216.99
Total current assets 19,756,787,266.39 19,816,154,428.20 59,367,161.81
Non-current assets:
Available-for-sale financial assets 326,164,881.33 Inapplicable -326,164,881.33
Long-term equity investments 6,182,962,034.71 6,182,962,034.71
Investments in other equity
Inapplicable 14,440,214.36 14,440,214.36
instruments
Other non-current financial assets Inapplicable 250,230,000.00 250,230,000.00
Investment property 210,824,355.72 210,824,355.72
Fixed assets 462,721,018.30 462,721,018.30
29
Konka Group Co., Ltd. Third Quarter Report 2019
Construction in progress 157,356,696.30 157,356,696.30
Intangible assets 83,593,959.11 83,593,959.11
Long-term prepaid expense 80,388,949.97 80,388,949.97
Deferred income tax assets 516,879,201.66 516,879,201.66
Other non-current assets 20,000,000.00 20,000,000.00
Total non-current assets 8,040,891,097.10 7,979,396,430.13 -61,494,666.97
Total assets 27,797,678,363.49 27,795,550,858.33 -2,127,505.16
Current liabilities:
Short-term borrowings 8,179,564,987.70 8,179,564,987.70
Trading financial liabilities Inapplicable 2,459,603.25 2,459,603.25
Financial liabilities at fair value
2,459,603.25 Inapplicable -2,459,603.25
through profit or loss
Notes payable 3,513,157,955.43 3,513,157,955.43
Accounts payable 6,477,055,955.65 6,477,055,955.65
Advances from customers 306,650,717.69 306,650,717.69
Payroll payable 146,199,496.44 146,199,496.44
Taxes payable 10,913,871.30 10,913,871.30
Other payables 2,011,494,378.65 2,011,494,378.65
Including: Interest payable 24,158,666.48 24,158,666.48
Current portion of non-current
40,000,000.00 40,000,000.00
liabilities
Total current liabilities 20,687,496,966.11 20,687,496,966.11
Non-current liabilities:
Long-term borrowings 245,000,000.00 245,000,000.00
Provisions 206,591.51 206,591.51
Deferred income 75,705,476.93 75,705,476.93
Deferred income tax liabilities 751,345.42 751,345.42
Total non-current liabilities 321,663,413.86 321,663,413.86
Total liabilities 21,009,160,379.97 21,009,160,379.97
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Capital reserves 114,018,066.79 114,018,066.79
Other comprehensive income -1,182,217.31 -1,182,217.31
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 3,040,171,940.85 3,038,044,435.69 -2,127,505.16
30
Konka Group Co., Ltd. Third Quarter Report 2019
Total owners’ equity 6,788,517,983.52 6,786,390,478.36 -2,127,505.16
Total liabilities and owners’ equity 27,797,678,363.49 27,795,550,858.33 -2,127,505.16
Notes for adjustment
The Company has implemented the New Financial Instrument Standard since January 1, 2019,
respectively measured “financial assets at fair value through profit or loss” as
“financial assets held for trading”, measured “available-for-sale financial assets” as
“financial assets held for trading” ， “other non-current financial assets” and “other equity
instrument”, measured “notes measured at the fair value with its changes included into other
comprehensive income” as “accounts receivable financing”, measured “financial liabilities at fair
value through profit or loss” as “trading financial liabilities”.
According to the convergence rules of the New Financial Instrument Standards, the Company does
not need to restate the previous comparables, and the information presented in the financial
statements is not inconsistent with the requirements of the new standard. The difference between the
original book value of the financial instrument and the new book value on the date of
implementation of the standard is included in the retained earnings at the beginning of 2019.
2. Retrospective Restatement of Previous Comparative Data due to the First of any New
Standards Governing Financial Instruments or Leases from 2019
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent
auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
Konka Group Co., Ltd.
30 October 2019
31
