Konka Group Co., Ltd.
Interim Report 2021 (Summary)
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2021-67
Bond Code: 114423, 114489 Bond Name: 19 Konka 02, 19 Konka 04
114524, 114894 19 Konka 06, 21 Konka 01
133003, 133040 21 Konka 02, 21 Konka 03
KONKA GROUP CO., LTD.
INTERIM REPORT 2021 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the Interim Report. In order for a full understanding of the
operating results, financial condition and future development planning of the Company, investors are
kindly reminded to read the full text carefully on the media designated by the China Securities
Regulatory Commission (the “CSRC”).
Except for the following directors, all the other directors attended in person the Board meeting for the
review of this Report and its summary.
Reason for not attending Proxy entrusted to attend the
Name Office title
meeting in person meeting
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
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.
Part II Key Corporate Information
1. Stock Profile
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
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Konka Group Co., Ltd.
Interim Report 2021 (Summary)
Stock exchange for stock
Shenzhen Stock Exchange
listing
Contact information Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, 28 Board Secretariat, 24/F, Konka R&D Center, 28
Keji South Twelfth Road, Science and Keji South Twelfth Road, Science and
Office address
Technology Park, Yuehai Street, Nanshan District, Technology Park, Yuehai Street, Nanshan
Shenzhen, Guangdong Province, China District, Shenzhen, Guangdong Province, China
Tel. 0755-26609138 0755-26609138
E-mail address szkonka@konka.com szkonka@konka.com
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2021 H1 2020 Change (%)
Operating revenue (RMB) 21,810,161,873.08 17,524,183,896.74 24.46%
Net profit attributable to the listed
85,449,919.57 94,701,792.63 -9.77%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -710,124,637.85 -650,010,495.47 -9.25%
exceptional gains and losses (RMB)
Net cash generated from/used in
-1,284,761,222.03 -1,076,366,927.48 -19.36%
operating activities (RMB)
Basic earnings per share (RMB/share) 0.0355 0.0393 -9.67%
Diluted earnings per share (RMB/share) 0.0355 0.0393 -9.67%
Weighted average return on equity (%) 1.01% 1.16% -0.15%
30 June 2021 31 December 2020 Change (%)
Total assets (RMB) 51,648,378,528.10 49,876,267,493.61 3.55%
Equity attributable to the listed
8,276,742,905.90 8,428,640,176.97 -1.80%
company’s shareholders (RMB)
3. Shareholders and Their Holdings as at the End of the Reporting Period
Unit: share
Number of ordinary Number of preferred shareholders with resumed
106,460
shareholders voting rights (if any)
Top 10 shareholders
Shareh Shares in pledge, marked or
Nature of olding Number of Restricted frozen
Name of shareholder
shareholder percent shares shares
age Status Shares
OVERSEAS CHINESE TOWN State-owned
21.75% 523,746,932 0
ENTERPRISES CO., LTD legal person
CITIC SECURITIES
Foreign legal
BROKERAGE (HONG KONG) 7.48% 180,001,110 0
person
CO., LTD.
Domestic
WANG JINGFENG natural 4.61% 111,000,000 0
person
GUOYUAN SECURITIES Foreign legal
2.40% 57,850,325 0
BROKER (HK) CO., LTD. person
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Konka Group Co., Ltd.
Interim Report 2021 (Summary)
Foreign legal
HOLY TIME GROUP LIMITED 2.38% 57,289,100 0
person
Foreign legal
GAOLING FUND,L.P. 2.19% 52,801,250 0
person
Domestic
LI HANFA natural 1.07% 25,680,000 0
person
Foreign
NAM NGAI natural 0.94% 22,567,540 0
person
CHINA MERCHANTS State-owned
0.80% 19,358,220 0
SECURITIES (HK) LIMITED legal person
Domestic
ZHENG LIN natural 0.52% 12,500,000 0
person
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first majority
Related or shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for short), holds 180,001,110 and
acting-in-concert 18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage (Hong
parties among Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment Limited and
shareholders above 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.
Wang Jingfeng holds 111,000,000 A-shares in the Company through his securities account for customer
credit trading guarantee in Guotai Junan Securities Co., Ltd.
Shareholders
Li Hanfa holds 25,680,000 A-shares in the Company through his securities account for customer credit
conducting margin
trading guarantee in Western Securities Co., Ltd.
trading
Zheng Lin holds 12,500,000 A-shares in the Company through his securities account for customer credit
trading guarantee in Ping An Securities Co., Ltd.
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Outstanding Bonds at the Date when this Report Was Authorized for Issue
√ Applicable □ Not applicable
(1) Basic Information of Bonds
Bonds
Coupon
Name Abbr. Code Issue date Due date balance
rate
(RMB’0,000)
Privately placed corporate bonds in 2019 of 14 January 14 January
19 Konka 01 114418 0 5.00%
Konka Group Co., Ltd (Tranche I) (Variety I) 2019 2022
Privately placed corporate bonds in 2019 of
19 Konka 02 114423 14 January 14 January 150,000 5.00%
Konka Group Co., Ltd (Tranche I) (Variety II)
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Konka Group Co., Ltd.
Interim Report 2021 (Summary)
2019 2022
Privately placed corporate bonds in 2019 of
19 Konka 03 114488 3 June 2019 3 June 2022 0 4.50%
Konka Group Co., Ltd (Tranche II) (Variety I)
Privately placed corporate bonds in 2019 of
19 Konka 04 114489 3 June 2019 3 June 2022 50,000 4.70%
Konka Group Co., Ltd (Tranche II) (Variety II)
Privately placed corporate bonds in 2019 of
19 Konka 05 114523 22 July 2019 22 July 2022 0 4.53%
Konka Group Co., Ltd (Tranche III) (Variety I)
Privately placed corporate bonds in 2019 of
19 Konka 06 114524 22 July 2019 22 July 2022 70,000 4.70%
Konka Group Co., Ltd (Tranche III) (Variety II)
Privately placed corporate bonds in 2021 of 8 January 8 January
21 Konka 01 114894 100,000 4.46%
Konka Group Co., Ltd (Tranche I) 2021 2024
Privately placed corporate bonds in 2021 of 21 May
21 Konka 02 133003 21 May 2024 50,000 4.00%
Konka Group Co., Ltd (Tranche II) 2021
Privately placed corporate bonds in 2021 of
21 Konka 03 133040 9 July 2021 9 July 2024 80,000 3.95%
Konka Group Co., Ltd (Tranche III)
(2) Financial Indicators as at the End of the Reporting Period
Item 30 June 2021 31 December 2020
Debt/asset ratio 79.49% 78.51%
H1 2021 H1 2020
EBITDA-to-interest coverage (times) 1.72 1.73
Part III Significant Events
In the Reporting Period, the Company adhered to the development strategy integrating "technology +
industry + industrial park" and closely centered on the new mainline of "semiconductor + new
consumer electronics (CE) + industrial park". It grasped the driving force of technology, explored the
value of the industry, and regarded industrial parks as a carrier and platform. In addition, the
Company earnestly conducted reforms, transformation, and upgrading. In line with its strategic
planning, the Company mainly carried out the following tasks:
1. The Company has continuously raised its R&D input and technology innovation. In terms of Micro
LEDs, it has built a whole-procedure Micro LED R&D and production line and launched Micro
LEDs with small spacing applied to wearables, flexible Micro LEDs, and 8K commercial Micro
LEDs. Meanwhile, the hybrid mass transfer technology developed by the company has reached the
advanced level in the industry in both transfer efficiency and yield. Currently, the Company has
completed the small-lot trial production of Micro LED chips and the small- and medium-lot trial
production of Mini LED chips. Furthermore, the Company won the Second Prize of Guangdong
Science and Technology Progress Award by jointly completing the New-generation Intelligent Video
Business System and Industrialization, the Third Prize of Anhui Science and Technology Progress
Award by jointly completing the Key Technology R&D and Industrialization of New Refrigerators
Based on Multi-field Coupling, and the 2020 Shenzhen Patent Award for its LED-based
Multi-functional Control System.
2. In the Reporting Period, the Company perfected and promoted the traditional CE business by
"advocating high-end brands, localize overseas business, and utilize intelligent and diversified
manufacturing", and vigorously conducted quality projects. Additionally, it closely followed market
demands, quickly optimized and upgraded products, and launched APHAEA OLED V5 Series TVs
and the K Freshness Series Long Freshness-keeping Refrigerator.
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Konka Group Co., Ltd.
Interim Report 2021 (Summary)
3. The Company, integrated industry with cities and homes, strove to expand new sci-tech parks, give
full play to the industrial cluster effect, and drive regional upgrading, in accordance with the
development strategy of "technology + industry + industrial park", based on the development of the
sci-tech industry. In the Reporting Period, the Company successively launched the construction
projects of the Konka intelligent household appliance headquarters and the Central China
headquarters in Xi'an and Changsha, and promoted and completed relevant sci-tech parks in
conformity with high requirements, standards, and quality. In the meantime, it kept strengthening
investment attraction, project construction, post-lending management, and park operations, gradually
formed its park brands, and formulated park operation standards with its own characteristics.
4. In the Reporting Period, the Company maintained a growth momentum in the business, proved by
its YoY increase of 24.46% in operating revenue.
Year-on-year changes in key financial data:
Unit: RMB
H1 2021 H1 2020 Change (%) Main reason for change
Operating revenue 21,810,161,873.08 17,524,183,896.74 24.46% As the domestic pandemic
Cost of sales was gradually under
control and the industry
20,817,175,713.78 16,268,993,432.88 27.96% rebounded, business was
gradually back to normal.
During the reporting
period, the company
Selling expense 667,662,036.47 969,224,381.98 -31.11% strictly controlled the
publicity fee and channel
fee
Administrative expense 359,053,667.07 440,915,780.44 -18.57%
Finance costs 459,415,782.71 387,040,866.75 18.70%
Income tax expense 84,263,268.37 73,425,522.47 14.76%
R&D investments 284,663,467.26 258,049,586.29 10.31%
Net cash generated from/used in
-1,284,761,222.03 -1,076,366,927.48 -19.36%
operating activities
Net cash generated from/used in Increase in cash payments
-1,785,387,038.28 -142,693,107.96 -1,151.21%
investing activities for investments
Net cash generated from/used in Decrease in debt
3,939,565,440.45 1,256,220,908.63 213.60%
financing activities repayments
mainly due to the net
Net increase in cash and cash
861,929,112.82 44,203,902.08 1,849.89% inflow of cash flow from
equivalents
financing activities
The Board of Directors
Konka Group Co., Ltd.
27 August 2021
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