Konka Group Co., Ltd. Interim Report 2021
KONKA GROUP CO., LTD.
INTERIM REPORT 2021
2021-68
August 2021
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Konka Group Co., Ltd. Interim Report 2021
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Konka Group Co., Ltd. (hereinafter referred to as the
“Company”) 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.
Zhou Bin, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Guo Zhihua, the head of theCompany’s financial department (equivalent
to financial manager) hereby guarantee that the Financial Statements carried in this Report
are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Company has no interim dividend plan, either in the form of cash or stock.
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. Interim Report 2021
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................. 10
Part III Management Discussion and Analysis..............................................................................13
Part IV Corporate Governance.......................................................................................................28
Part V Environmental and Social Responsibility.......................................................................... 30
Part VI Significant Events............................................................................................................... 40
Part VII Share Changes and Shareholder Information................................................................62
Part VIII Preferred Shares.............................................................................................................. 67
Part IX Corporate Bonds.................................................................................................................68
Part X Financial Statements............................................................................................................73
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Konka Group Co., Ltd. Interim Report 2021
Documents Available for Reference
(I) The financial statements with the signatures and seals of the Company’s legal representative,
Chief Financial Officer and head of the financial department;
(II) The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period; and
(III) The documents above are available at the Secretariat of the Board.
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Konka Group Co., Ltd. Interim Report 2021
Definitions
Term Definition
The “Company”, the “Group”, “Konka Group” or Konka Group Co., Ltd. and its consolidated subsidiaries, except where the
“we” context otherwise requires
Anhui Zhilian Anhui Konka Zhilian E-Commerce Co., Ltd.
Haimen Konka Haimen Konka Smart Technology Co., Ltd.
Chengdu Konka Smart Chengdu Konka Smart Technology Co., Ltd.
Chengdu Konka Electronic Chengdu Konka Electronic Co., Ltd.
Nantong Hongdin Nantong Hongdin Smart Technology Co., Ltd.
Youzhihui Shenzhen Youzhihui Technology Co., Ltd.
Xiaojia Technology Shenzhen Xiaojia Technology Co., Ltd.
Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co., Ltd.
Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co., Ltd.
Nanjing Konka Nanjing Konka Electronics Co., Ltd.
Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co., Ltd.
Xi'an Huasheng Xi'an Huasheng Jiacheng Real Estate Co., Ltd.
XingDa HongYe GuangDong XingDa HongYe Electronic Co., Ltd.
Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB Co., Ltd.
Konka Circuit Shenzhen Konka Circuit Co., Ltd.
Konka Soft Electronic Suining Konka Soft Electronic Technology Co., Ltd.
Konka Hongye Electronics Suining Konka Hongye Electronics Co., Ltd.
Boluo Precision Boluo Konka Precision Technology Co., Ltd.
Boluo Konka Boluo Konka PCB Co., Ltd.
Xiamen Dalong Xiamen Dalong Trading Co., Ltd.
Electronics Technology Shenzhen Konka Electronics Technology Co., Ltd.
Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co., Ltd.
Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co., Ltd.
Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co., Ltd.
Frestec Refrigeration Henan Frestec Refrigeration Appliance Co., Ltd.
Frestec Electrical Appliances Henan Frestec Electrical Appliances Co., Ltd.
Frestec Household Appliances Henan Frestec Household Appliances Co., Ltd.
Frestec Smart Home Henan Frestec Smart Home Technology Co., Ltd.
Konka Investment Shenzhen Konka Investment Holdings Co., Ltd.
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Konka Group Co., Ltd. Interim Report 2021
Yibin Konka Technology Park Yibin Konka Technology Park Operation Co., Ltd.
Konka Capital Shenzhen Konka Capital Equity Investment Management Co., Ltd.
Industrial Park Development Shenzhen Konka Industrial Park Development Co., Ltd.
Konka Suiyong Konka Suiyong Investment (Shenzhen) Co., Ltd.
Kangquan Enterprise Shenzhen Kangquan Enterprise Management Consulting Co., Ltd.
Konka Suyuan Shenzhen Konka Suyuan Investment Industrial Co., Ltd.
Shengxing Industrial Shenzhen Konka Shengxing Industrial Co., Ltd.
Zhitong Technology Shenzhen Konka Zhitong Technology Co., Ltd.
Konka Factoring Konka Factoring (Shenzhen) Co., Ltd.
Beijing Konka Electronic Beijing Konka Electronic Co., Ltd.
Konka Leasing Konka Financial Leasing (Tianjin) Co., Ltd.
Suining Konka Industrial Park Suining Konka Industrial Park Development Co., Ltd.
Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co., Ltd.
Shanghai Konka Shanghai Konka Industrial Co., Ltd.
Yantai Kangjin Yantai Kangjin Technology Development Co., Ltd.
Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co., Ltd.
Sichuan Konka Sichuan Konka Smart Terminal Technology Co., Ltd
Yibin Smart Yibin Konka Smart Technology Co., Ltd.
Shenzhen KONSEMI Shenzhen KONSEMI Co., Ltd.
Chongqing Konka Chongqing Konka Technology Development Co., Ltd.
Hefei KONSEMI Hefei KONSEMI Storage Technology Co., Ltd.
Yihe Electronic Hefei Yihe Electronic Co., Ltd.
Shenzhen Huiying Technology Shenzhen Konka Huiying Technology Co., Ltd.
Chongqing Huiying Technology Chongqing Konka Huiying Technology Co., Ltd.
Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co., Limited
Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co., Limited
Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd.
Industrial and Trade Technology Konka Industrial and Trade Technology (Shenzhen) Co., Ltd.
Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co., Ltd.
Konka Huazhong Konka Huazhong (Hunan) Technology Co., Ltd.
Wankaida Shenzhen Wankaida Science and Technology Co., Ltd.
Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Suining Jiarun Property Suining Jiarun Property Co., Ltd.
Konka Electrical Appliances Shenzhen Konka Electrical Appliances Co., Ltd.
E2info Shenzhen E2info Network Technology Co., Ltd.
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Konka Group Co., Ltd. Interim Report 2021
E2info (Hainan) E2info (Hainan) Network Technology Co., Ltd.
Anhui Konka Anhui Konka Electronic Co., Ltd.
Kangzhi Trade Anhui Kangzhi Trade Co., Ltd.
Telecommunication Technology Shenzhen Konka Telecommunications Technology Co., Ltd.
Konka Mobility Konka Mobility Co., Limited
Dongguan Packing Dongguan Konka Packing Materials Co., Ltd.
Dongguan Konka Dongguan Konka Electronic Co., Ltd.
Suining Konka Smart Suining Konka Smart Technology Co., Ltd.
Chongqing Optoelectronic Technology Research
Chongqing Konka Optoelectronic Technology Research Institute Co., Ltd.
Institute
Yibin Kangrun Yibin Kangrun Environmental Technology Co., Ltd.
Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd.
Yibin Kangrun Environmental Protection Yibin Kangrun Environmental Protection Power Generation Co., Ltd.
Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co., Ltd.
Jiangxi Konka Jiangxi Konka New Material Technology Co., Ltd.
Jiangxi High Transparent Substrate (formerly Jiangxi High Transparent Substrate Material Technology Co., Ltd. (formerly
known as “Nano-Grystallized Glass”) known as “Jiangxi Golden Phoenix Nano-Grystallized Glass Co., Ltd.”)
Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co., Ltd.
Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co., Ltd.
Konka Huanjia Konka Huanjia Environmental Technology Co., Ltd.
Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co., Ltd.
Econ Technology Shandong Econ Technology Co., Ltd.
Econ Environmental Engineering Econ Environmental Engineering Co., Ltd.
Beijing Econ Beijing Econ Runfeng Technology Co., Ltd.
Binzhou Econ Zhongke Binzhou Econ Zhongke Environmental Technology Co., Ltd.
Dayi Kangrun Water Dayi Kangrun Water Co., Ltd.
Tingyuan Environmental Tingyuan Environmental Technology (Shanghai) Co., Ltd.
Shanghai Jiyi Shanghai Jiyi Environmental Technology Co., Ltd.
Kangrunhong Environmental Kangrunhong Environmental Technology (Yantai) Co., Ltd.
Donggang Kangrun Donggang Kangrun Environmental Management Co., Ltd.
Gaoping Kangrun Gaoping Kangrun Environmental Protection & Water Co., Ltd.
Xi’an Kangrun Xi’an Gaoling Kangrun Environmental Engineering Co., Ltd.
Changning Kangrun Changning Kangrun Water Co., Ltd.
Lushan Kangrun Environmental Lushan Kangrun Environmental Management Co., Ltd.
Tongchuan Kangrun Honghui Tongchuan Kangrun Honghui Environmental Management Co., Ltd.
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Konka Group Co., Ltd. Interim Report 2021
Rushan Econ Rushan Econ Water Environment Management Co., Ltd.
Mengcheng Kangrun Mengcheng Kangrun Anjian Water Co., Ltd.
Chongzhou Kangrun Chongzhou Kangrun Environment Co., Ltd.
Suining Pengxi Kangrun Suining Pengxi Kangrun Environmental Management Co., Ltd.
Funan Kangrun Water Funan Kangrun Water Co., Ltd.
Subei Kangrun Water Subei Mongol Autonomous County Kangrun Water Co., Ltd.
Linfen Kangrun Linfen Kangrun Jinze Water Supply Co., Ltd.
Wuhan Runyuan Wastewater Wuhan Runyuan Wastewater Treatment Co., Ltd.
Binzhou Weiyijie Binzhou Weiyijie Environmental Technology Co., Ltd.
Binzhou Beihai Jingmai Binzhou Beihai Jingmai Industrial Development Co., Ltd.
Chunzhiran Yantai Chunzhiran Environmental Technology Co., Ltd.
Lairun Holding Laizhou Lairun Holding Co., Ltd.
Binhai Wastewater Laizhou Binhai Wastewater Treatment Co., Ltd.
Lairun Environmental Protection Laizhou Lairun Environmental Protection Co., Ltd.
Lairun Wastewater Laizhou Lairun Wastewater Treatment Co., Ltd.
Weifang Sihai Kangrun Weifang Sihai Kangrun Investment Operation Co., Ltd.
Xixian Kangrun Xixian Kangrun Xijian Water Environment Development Co., Ltd.
Ankang Kangrun Ankang Kangrun Xinheng Water Environment Co., Ltd.
Bokang Renewable Bokang Renewable Resources (Yantai) Co., Ltd.
Kangruncheng Environmental Technology Kangruncheng Environmental Technology (Yantai) Co., Ltd.
Shaanxi Konka Intelligent Shaanxi Konka Intelligent Appliance Co., Ltd.
Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co., Ltd.
Jiaxin Technology Jiaxin Technology Co., Ltd.
Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd.
Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co., Ltd.
Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd.
Chongqing Kanglei Optoelectronic Chongqing Kanglei Optoelectronic Technology Co., Ltd.
Henan Kangxin Property Henan Kangxin Property Co., Ltd.
Konka Unifortune Shenzhen Konka Unifortune Technology Co., Ltd.
Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co., Ltd.
Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co., Ltd.
Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co., Ltd.
Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd.
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Konka Group Co., Ltd. Interim Report 2021
Yantai Laikang Yantai Laikang Industrial Development Co., Ltd.
Konka Material Hainan Konka Material Technology Co., Ltd.
Konka Ventures Konka Ventures Development (Shenzhen) Co., Ltd.
Yibin Konka Incubator Yibin Konka Incubator Management Co., Ltd.
Yantai Konka Yantai Konka Healthcare Enterprise Service Co., Ltd.
Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co., Ltd.
Konka Enterprise Service Guiyang Konka Enterprise Service Co., Ltd.
Chuanghui Smart Nanjing Chuanghui Smart Technology Co., Ltd.
Konka Eco-Development Shenzhen Konka Eco-Development Investment Co., Ltd.
Shenzhen Kangxin Property Shenzhen Kangxin Property Co., Ltd.
Henan Kanghan Property Henan Kanghan Property Co., Ltd.
Konka Europe Konka (Europe) Co., Ltd.
Hong Kong Konka Hong Kong Konka Limited
Kangxin Semiconductor Kangxin Semiconductor (Yantai) Co., Ltd.
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
Kanghao Technology Kanghao Technology Co., Ltd.
Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co., Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies (Shenzhen) Co., Limited
(Shenzhen)
Hefei Chain Kingdom Memory Technologies Hefei Chain Kingdom Memory Technologies Co., Limited
Konka Smartech Konka Smartech Limited
Hongjet Hongjet (Hong Kong) Company Limited
Yantai Kangyun Yantai Kangyun Industrial Development Co., Ltd.
Yantai Kangyun Property Yantai Kangyun Property Development Co., Ltd.
CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB, RMB’0,000, RMB’00,000,000
of Renminbi, expressed in hundreds of millions of Renminbi
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Konka Group Co., Ltd. Interim Report 2021
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbr. (if any) 康佳集团
Company name in English (if
KONKA GROUP CO.,LTD
any)
Abbr. (if any) KONKA GROUP
Legal representative Zhou Bin
II Contact Information
Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, 28 Keji Board Secretariat, 24/F, Konka R&D Center, 28 Keji
South Twelfth Road, Science and Technology Park, South Twelfth Road, Science and Technology Park,
Address
Yuehai Street, Nanshan District, Shenzhen, Yuehai Street, Nanshan District, Shenzhen,
Guangdong Province, China Guangdong Province, China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
Email address szkonka@konka.com szkonka@konka.com
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and
their zip codes, website address and email address of the Company in the Reporting Period.
□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2020
Annual Report.
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Konka Group Co., Ltd. Interim Report 2021
2. Media for Information Disclosure and Place where this Report is Lodged
Indicate by tick mark whether any change occurred to the information disclosure media and the
place for lodging the Company’s periodic reports in the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by
the CSRC for disclosing the Company’s periodic reports and the place for lodging such reports did
not change in the Reporting Period. The said information can be found in the 2020 Annual Report.
IV 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)
V Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting
Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
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Konka Group Co., Ltd. Interim Report 2021
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 268,231,018.80
Government subsidies charged to current profit or loss (exclusive of government subsidies
given in the Company’s ordinary course of business at fixed quotas or amounts as per the 714,611,090.13
government’s uniform standards)
Gain or loss on fair-value changes in trading and derivative financial assets and liabilities &
income from disposal of trading and derivative financial assets and liabilities and investments
74,929,272.98
in other debt obligations (exclusive of the effective portion of hedges that arise in the
Company’s ordinary course of business)
Gain or loss on loan entrustments 36,464,688.55
Non-operating income and expense other than the above 15,023,790.96
Less: Income tax effects 229,844,293.22
Non-controlling interests effects (net of tax) 83,841,010.78
Total 795,574,557.42
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 involved (RMB) Reason
Government subsidies given in the Company’s ordinary course of
Tax rebates on software 6,085,265.89 business at fixed quotas or amounts as per government’s uniform
standards
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Konka Group Co., Ltd. Interim Report 2021
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
(I) The Consumer Electronic Division
This division primarily comprises the multimedia sub-division and the white goods sub-division,
with details as follows:
1. The Multimedia Sub-Division
The Company provides multimedia products and services, including colour TVs and Internet TV
services, for both domestic and overseas markets.
The domestic sales of the Company’s colour TVs are realized mainly through B2B
(Business-to-Business) and B2C (Business-to-Consumer), with its branch companies, business
departments and after-sales maintenance points operating across the country. And the Company
profits from the margins between the costs and the selling prices of its colour TVs.
As for selling its colour TVs abroad, the Company mainly relies on B2B. Its colour TVs are sold to
Asia Pacific, Middle East, Central & South America, East Europe, etc. And operating profit source
is also the differences between the costs and the selling prices of its colour TVs.
Internet business is based on the intelligent TV terminals sold by our company. It mainly carries out
three aspects of business. Firstly, it works with other Internet companies to provide end users with,
among other content, video, educational, music, medical and game content to generate earnings.
Secondly, it analyses user behaviours and offer certain free, interactive services to increase
attractiveness to users, promote its brand and stimulate desire for its hardware products. Finally, it is
trying to build an Internet TV platform with tens of millions of users, on which it will profit through
commercial and application distribution. This Internet TV business is key to the Company’s
Internet-oriented transformation and upgrade to a development model of “hardware + software” and
“smart TV + end users”.
According to All View Cloud (AVC), in the first half of 2021 (2021H1), driven by factors including
the short supply of chips and panels and increasing supply prices, rising average retail prices,
decreased user loyalty, and product homogenization, in terms of the Chinese color TV market,
17.81 million sets were sold accumulatively, down by 14.7% year-on-year (YoY). The sales
amounted to RMB59.4 billion, up by 15.1% YoY.
2. The White Goods Sub-Division
The white goods produced by the Company mainly include refrigerators, washing machines, air
conditioners, freezers, etc., which are sold through B2B and B2C mainly to the domestic market.
And the Company profits from the margins between the costs and the selling prices of its white
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Konka Group Co., Ltd. Interim Report 2021
goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. The Company also optimized the internal R&D, production, procurement,
sales, and services processes and integrated the external channel resources to enable channel sharing
between the upstream procurement processes and downstream sales processes. By taking advantage
of this opportunity, the Company improved the product and sales structure and enhanced the
management of online channels.
With respect to white goods, AVC data demonstrate that due to a low base in the same period of last
year and the increase in upstream costs, the retail sales reached RMB176.7 billion in 2021H1, up by
13.3% YoY. 65.75 million sets were sold, with an increase of 4.4% YoY. Specifically, the retail sales
of air-conditioners dropped by 5.7%, while those of refrigerators grew by 5.9%. The YoY increases
in the retail sales of freezers, washing machines, and clothes dryers were prominent.
(II) The Industry Trade Business
In the industry trade business, the Company benefits from purchasing and processing IC chips, LC
D screens, etc., which are raw materials in its traditional core business, from upstream suppliers and
selling them to downstream customers. The industry trade business can help the Company establish
good relationships with its upstream suppliers and downstream customers, and keep it informed of
prices of the materials used in its production for better cost control over its existing products.
Additionally, it is able to facilitate the development of the semiconductor business by helping
accumulate customer resources for the semiconductor and chip business, provide sales channels,
and achieve accurate matching of market demand, with a shortened product development period and
a lower risk of mismatching of R&D and market demand.
(III) The Environmental Protection Division
Currently, this business focuses on water treatment, recycling of renewable resources and the new
material of glass ceramic. Water engineering PPP (Public-Private Partnership) projects are
undertaken under BOT (Build-Operate-Transfer) or EPC (Energy Performance Contracting) models.
Renewable resources are collected, sorted, processed, distributed and sold.
The Plan for Urban Sewage Treatment and Recycling for "14th Five-Year Plan" Period, jointly
issued by the National Development and Reform Commission (NDRC) and the Ministry of Housing
and Urban-Rural Development (MOHURD), highlighted the main tasks in the environmental
protection industry for the 14th Five-Year Plan period, including improving the coordinated
mechanism for water pollution prevention and control, comprehensively controlling key basins and
lakes, urban water bodies, and offshore areas, and pushing forward the protection and restoration of
beautiful rivers and lakes. The market capacity of China's sewage treatment industry was expanded
steadily in the past three years, thanks to the all-round support, including the strong support of
national policies, growing capital input, and constant innovation of technologies and processes.
Looking ahead, along with the accelerating urbanization and continuous industry progress, the
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Konka Group Co., Ltd. Interim Report 2021
quantity of wastewater effluent will keep rising, and the sewage treatment demand will be further
released. The water pollution prevention and control industry is considered a promising industry.
(IV) The Semi-Conductor Division
Currently, the Company is engaged in storage, optoelectronics, etc. with respect to the
semi-conductor business. In storage, the Company primarily designs and markets master storage
chips, and engage in packaging and testing of storage products. In optoelectronics, the Company
primarily develops Micro LED-related products.
II Core Competitiveness Analysis
The Company’s core competitiveness lies in its R&D ability, brand, marketing network and human
resources. It has developed a three-level R&D system of “Konka Research Institute-Multimedia
R&D Centre-specialized design institutes”, established artificial intelligence internet of things
comprehensive laboratory and 5g Ultra HD laboratory with major universities or scientific research
institutions, established academician workstation, and built a technology research alliance matching
the industrial layout, with nearly 100 core key technologies and about 150 talents The company has
a R & D team of more than 20 people, and has introduced two projects of micro led and memory
master chip, with more than 100 industry technical talents. In terms of brand, the company
continues to promote brand strategy construction, system construction, image construction and
cultural construction, focuses on improving the scientific and international image of the enterprise,
strengthens the brand status, has a certain brand awareness and reputation in the consumer group,
and has good brand credit in banks and other financing channels. In terms of marketing channels,
the company innovates channel reform, cooperates online and offline for win-win results, and
strives for development at home and abroad. Offline channel, the company has more than 40
branches, more than 200 offices, more than 3000 after-sales service stores in all provinces and cities
of China, and the marketing and service network is all over the country; online channel, the
company has settled in tmall, Jingdong, Suning, vipshop and other mainstream e-commerce
platforms to innovate and develop live e-commerce business, and seek a new growth pole for
business development; overseas channel, the company The company's business covers Latin
America, Europe, Asia Pacific and other countries and regions, with a sound marketing network.
The company has many years of experience in senior management and executive team.
III Analysis of Main Businesses
(I) Overview
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
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Konka Group Co., Ltd. Interim Report 2021
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.
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.
(II) 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
20,817,175,713.78 16,268,993,432.88 27.96%
control and the industry
16
Konka Group Co., Ltd. Interim Report 2021
rebounded, business was
gradually back to normal.
The company strictly
Selling expense 667,662,036.47 969,224,381.98 -31.11% controls 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.
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes.
Breakdown of operating revenue:
Unit: RMB
H1 2021 H1 2020
As % of total As % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 21,810,161,873.08 100% 17,524,183,896.74 100% 24.46%
By operating division
Electronics 6,262,070,661.11 28.71% 5,944,882,118.18 33.92% 5.34%
Industry trade 12,184,495,984.54 55.87% 9,566,197,970.86 54.59% 27.37%
Environmental
2,724,186,133.96 12.49% 1,498,623,593.33 8.55% 81.78%
business
Semiconductor 241,973,760.06 1.11% 223,849,167.50 1.28% 8.10%
Other 397,435,333.41 1.82% 290,631,046.87 1.66% 36.75%
By product category
Color TVs 3,190,601,881.06 14.63% 3,218,278,547.14 18.36% -0.86%
17
Konka Group Co., Ltd. Interim Report 2021
White goods 1,752,194,252.46 8.03% 1,918,628,399.97 10.95% -8.67%
Industry trade 12,184,495,984.54 55.87% 9,566,197,970.86 54.59% 27.37%
Environmental
2,724,186,133.96 12.49% 1,498,623,593.33 8.55% 81.78%
business
Semiconductor 241,973,760.06 1.11% 223,849,167.50 1.28% 8.10%
Other 1,716,709,861.00 7.87% 1,098,606,217.94 6.27% 56.26%
By operating segment
Overseas 11,317,853,852.95 51.89% 10,681,530,016.92 60.95% 5.96%
Domestic 10,492,308,020.13 48.11% 6,842,653,879.82 39.05% 53.34%
Operating division, product category or operating segment contributing over 10% of operating
revenue or operating profit:
√ Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in
YoY change in
Operating revenue Cost of sales profit operating revenue gross profit
cost of sales (%)
margin (%) margin (%)
By operating division
Electronics 6,262,070,661.11 5,762,383,881.2 7.98% 5.34% 13.09% -6.31%
Industry trade 12,184,495,984.54 12,079,110,369.50 0.86% 27.37% 28.19% -0.64%
Environmental
2,724,186,133.96 2,439,448,446.23 10.45% 81.78% 82.34% -0.28%
business
By product category
Color TVs 3,190,601,881.06 3,017,183,364.20 5.44% -0.86% 10.00% -9.33%
White goods 1,752,194,252.46 1,608,490,566.46 8.20% -8.67% -2.57% -5.75%
Environmental
2,724,186,133.96 2,439,448,446.23 10.45% 81.78% 82.34% -0.28%
business
Industry trade 12,184,495,984.54 12,079,110,369.50 0.86% 27.37% 28.19% -0.64%
By operating segment
Domestic 10,492,308,020.13 9,663,603,370.15 7.90% 53.34% 67.18% -7.63%
Overseas 11,317,853,852.95 11,153,572,343.63 1.45% 5.96% 6.34% -0.36%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□ Applicable √ Not applicable
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
The change in revenue of the environmental business was primarily driven by growth in revenue
18
Konka Group Co., Ltd. Interim Report 2021
from environmental engineering and steel scrap.
The change in domestic revenue was primarily because as the domestic pandemic was gradually
under control and the industry rebounded, business was gradually back to normal.
IV Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As % of total
Amount Source/Reason Recurrent or not
profit
Return on Transfer of equity investments in certain
322,244,312.89 184.12% Not recurrent
investment subsidiaries in the period
Gain/loss on
40,362,513.73 23.06% Not recurrent
changes in fair value
Asset impairments -29,538,732.82 -16.88% Not recurrent
Non-operating
21,618,277.79 12.35% Not recurrent
income
Non-operating
6,793,873.14 3.88% Not recurrent
expense
V Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2021 31 December 2020 Change in
Reason for
As % of total As % of total percentage
Amount Amount material change
assets assets (%)
Monetary
5,808,945,725.97 11.25% 5,431,530,180.90 10.89% 0.36%
assets
Accounts
4,549,591,026.59 8.81% 3,900,897,623.59 7.82% 0.99%
receivable
Contract assets 3,278,002,380.34 6.35% 2,870,006,710.39 5.75% 0.60%
Inventories 5,159,261,206.91 9.99% 4,521,300,677.41 9.07% 0.92%
Investment
517,599,145.62 1.00% 538,585,668.29 1.08% -0.08%
property
Long-term
equity 4,465,804,131.62 8.65% 4,375,833,584.65 8.77% -0.12%
investments
19
Konka Group Co., Ltd. Interim Report 2021
Fixed assets 3,355,378,019.70 6.50% 3,178,642,017.84 6.37% 0.13%
Construction in
10,099,450,528.06 19.55% 9,236,643,931.68 18.52% 1.03%
progress
Right-of-use
91,722,023.03 0.18% -
assets
Short-term
10,660,328,520.00 20.64% 10,990,550,475.78 22.04% -1.40%
borrowings
Contract
809,414,528.15 1.57% 1,217,367,735.94 2.44% -0.87%
liabilities
Long-term
7,881,025,148.48 15.26% 5,964,748,997.54 11.96% 3.30%
borrowings
Lease
68,784,148.21 0.13% -
liabilities
Current portion
of non-current 4,327,184,538.69 8.38% 376,896,566.29 0.76% 7.62%
liabilities
Bonds payable 2,992,708,333.32 5.79% 4,993,212,788.32 10.01% -4.22%
2. Major Assets Overseas
□ Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Impair
ment
Gain/loss on Cumulative Oth
allowa Purchased
fair-value fair-value Sold in the er
Beginning nce for in the Ending
Item changes in changes Reporting cha
amount the Reporting amount
the Reporting charged to Period nge
Report Period
Period equity s
ing
Period
Financial assets
1. Trading
financial assets
(derivative 618,249,541.66 3,691,020.84 621,940,562.50
financial assets
excluded)
2. Derivative
financial assets
3. Other debt
20
Konka Group Co., Ltd. Interim Report 2021
investments
4. Investments
in other equity 25,343,293.16 25,343,293.16
instruments
Subtotal of
643,592,834.82 3,691,020.84 621,940,562.50 25,343,293.16
financial assets
Investment
property
Productive
living assets
Others 1,962,211,994.20 6,010,580.92 326,778,896.86 141,990,945.19 2,153,010,526.79
Total of the
2,605,804,829.02 9,701,601.76 326,778,896.86 763,931,507.69 2,178,353,819.95
above
Financial
liabilities
Other changes
Unit: RMB
Impairme
Gain/loss on
Cumulative nt Oth
fair-value Purchased in
Beginning fair-value allowance Sold in the er
Item changes in the Reporting Ending amount
amount changes charged for the Reporting Period chan
the Reporting Period
to equity Reporting ges
Period
Period
Other non-current
1,878,154,796.76 6,010,580.92 215,403,755.99 57,933,747.75 2,041,635,385.92
financial assets
Receivables
84,057,197.44 111,375,140.87 84,057,197.44 111,375,140.87
financing
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
4. Restricted Asset Rights as at the Period-End
Ending carrying value
Item Reason for restriction
(RMB)
Among them, RMB543,742,698.80 is margin deposit, pledge is used for borrowing or
issuing bank acceptance bill, RMB34,559,081.12 is financial supervision account fund;
Monetary assets 648,960,499.91
RMB63,213,179.74 is fixed deposit that can not be withdrawn in advance;
RMB7,445,540.25 is restricted due to other reasons.
The Company uses the bank acceptance bill with book value of RMB 693,159,230.21 as
Notes
693,159,230.21 pledge for comprehensive financing business such as issuing bank acceptance bill, letter
receivable of credit, letter of guarantee, trade financing, etc.
21
Konka Group Co., Ltd. Interim Report 2021
Investment
140,612,795.31 As collateral for loan
property
Fixed assets 687,463,055.62 As collateral for loan, finance lease and guarantee
Construction in
317,974,560.85 As collateral for loan
progress
Intangible
397,262,395.64 As collateral for loan, finance lease and guarantee
assets
Long-term
350,937,230.14 As pledge for loan
receivables
Total 3,236,369,767.68
VI Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in the Total investment amount in the same
Change
Reporting Period (RMB) period of last year (RMB)
2,768,943,435.03 1,709,994,661.79 61.93%
2. Major Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
reason for
not
Est meeting
Input Accumulat Accumulat
Inves im Disclosure Disclosur
Fixed Indust amount ive actual Capit Pr ive
tmen ate the
assets ry in the input al og realized
Item t d date (if e index (if
investme involv Reporti amount as resou re revenues schedule
meth rev
nt or not ed ng of the rces ss as of the any) any)
od en
Period period-end period-end and
ues
expected
revenues
Dongguan Electr
Self-f
Konka Self- onic 22,844, 241,864,5 11 March
Yes unde N/A
Intelligent build indust 500.00 00.00 2017 http://ww
d
Industrial Park ry w.cninfo.c
Suining Konka Electr om.cn/ne
Self-f
Electronic Self- onic 80,752, 266,537,3 17 October w/index
Yes unde N/A
Technology build indust 162.46 04.53 2018
d
Industrial Park ry
Konka Self- Yes Electr 119,214 602,415,9 Self-f N/A 25
22
Konka Group Co., Ltd. Interim Report 2021
Chuzhou Smart build onic ,464.67 39.67 unde December
Appliances and indust d 2018
Equipment ry
Industrial Park
Chongqing
Electr
Konka Self-f
Self- onic 53,065, 156,508,1 14 June
Semiconductor Yes unde N/A
build indust 687.92 75.19 2019
Photoelectric d
ry
Industrial Park
Yancheng Electr
Self-f 26
Semiconductor Self- onic 64,018, 64,819,64
Yes unde N/A November
Assembly & build indust 985.46 9.46
d 2019
Test Base ry
Konka 19,831, 28,070,70
Electr
Intelligent 506.95 6.95 Self-f
Self- onic 6 June
Terminal Yes unde N/A
build indust 2020
Manufacturing d
ry
Base for Export
Electr
Frestec Self-f
Self- onic 1,123,6 97,807,33 21 July
Refrigeration Yes unde N/A
build indust 64.00 9.61 2020
Park d
ry
Xi’an Konka
Electr
Smart Self-f 10
Self- onic
Appliances Yes 0 0 unde N/A February
build indust
Headquarters d 2021
ry
Project
360,850 1,458,023,
Total -- -- -- -- -- -- -- --
,971.46 615.41
Note: Konka Chuzhou Smart Appliances and Equipment Industrial Park has obtained project land ,
and infrastructure has been completed (installation and debugging has been completed for certain
production lines and equipment of Ankang smart factory). Some production lines, equipment and
instruments of Yancheng Semiconductor Assembly & Test Base are being debugged to prepare for
formal production. Regarding Dongguan Konka Intelligent Industrial Park, Chongqing Konka
Semiconductor Photoelectric Industrial Park, Suining Konka Electronic Technology Industrial Park,
and Konka Intelligent Terminal Manufacturing Base for Export, project land has been obtained and
construction begins. As for Xi’an Konka Smart Appliances Headquarters Project, it is at a stage of
preparation.
23
Konka Group Co., Ltd. Interim Report 2021
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
√ Applicable □ Not applicable
Amount Amount
contributed contribute
by the d by the Relati
Rela
equity sale to net onship
ted-
Sellin interests to Effect income of betwe Owner Executed as Index
part
g net income of the the Pricin en ship scheduled or to
Count Equity Date y Discl
price of the sale on Company g counte fully not, if not, disclos
erpart interest of tran osure
(RM Company the as a princi rparty transfe state reason ed
y s sold sale sacti date
B’0,0 from Compa percentage ple and rred or and actions inform
on
00) period-beg ny of the the not taken ation
or
inning to Company’ Comp
not
date of sale s net any
(RMB’0,0 income
00) (%)
17% Optimi
interest zing the
Yantai in Compa
Huayi Yantai ny’s
Kang Kangy allocati 14 http://
31
qiao un on of Valua Janua www.c
Mar. 3,451 -9.30 109.72% No No Yes N/A
Real Industr assets, tion ry ninfo.c
2021
Estate ial increasi 2021 om.cn/
Co., Develo ng new/in
Ltd. pment capital dex
Co., liquidit
Ltd. y
Shang 39% 13 Optimi Valua 2
7,478 0 35.50% No No Yes N/A
hai interest Apr. zing the tion Mar.
24
Konka Group Co., Ltd. Interim Report 2021
Songp in 2021 Compa 2021
u Shangh ny’s
Enter ai allocati
prise Konka on of
Mana Green assets,
geme Techno increasi
nt logy ng
Co., Co., capital
Ltd. Ltd. liquidit
y
Optimi
Xinxi
51% zing the
ang
interest Compa
Jiante
in ny’s
ng
Shenzh allocati
Real 17 27
en 10,44 on of Valua
Estate Jun. -705.34 75.46% No No Yes N/A Mar.
Kangxi 2 assets, tion
Devel 2021 2021
n increasi
opme
Propert ng
nt
y Co., capital
Co.,
Ltd. liquidit
Ltd.
y
VIII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net
profit:
Unit: RMB
Relations
Principal
hip with Operating
Name Registered capital Total assets Net assets Operating profit Net profit
activity
the revenue
Company
Shandong Econ Public
Technology Subsidiar service-wate
RMB164,000,000 14,942,559,601.76 1,709,247,396.00 987,086,128.04 146,681,624.08 128,453,230.52
Co., Ltd. y r
(Consolidated) management
Anhui Kongka Production
Subsidiar
Electronic Co., and sale of RMB140,000,000 3,690,534,934.05 650,661,601.90 1,806,868,590.94 46,276,410.97 39,162,542.61
y
Ltd. electronics
Subsidiar Internet and RMB20,174,070.
E2info 553,956,780.55 415,500,435.15 234,615,129.51 113,598,977.66 96,479,893.87
y related 81
25
Konka Group Co., Ltd. Interim Report 2021
services
Export &
Hong Kong import of
Subsidiar
Konka Co., electromech HKD500,000 2,739,505,284.38 300,611,258.28 1,652,745,518.47 74,845,278.16 62,111,963.10
y
Ltd. anical and
electronics
Shenzhen Software
Wankaida
Subsidiar design and
Science and RMB10,000,000 112,526,307.52 109,488,027.22 29,631,160.00 26,720,092.73 22,580,956.32
y technology
Technology
development
Co., Ltd.
Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was
Effects on overall operations and operating
Subsidiary obtained or disposed in
performance
the Reporting Period
Chongqing Kanglei Optoelectronic
De-registered
Technology Co., Ltd. For better allocation of assets
Henan Kangxin Property Co., Ltd. De-registered
Nantong Hongdin Smart Technology Co.,
Newly incorporated
Ltd.
Chuzhou Konka Precision Intelligent
Newly incorporated
Manufacturing Technology Co., Ltd.
Xi'an Huasheng Jiacheng Property Co.,
Newly incorporated
Ltd.
Suining Konka Soft Electronic Technology
Newly incorporated
Co., Ltd.
Suining Konka Hongye Electronic Co.,
Newly incorporated
Ltd.
Beneficial to the development of the Company’s
Kowin Memory Technology (Hong Kong)
Newly incorporated relevant business
Co., Limited
Konka Industrial and Trade Technology
Newly incorporated
(Shenzhen) Co., Ltd.
Konka Huazhong (Hunan) Technology Co.,
Newly incorporated
Ltd.
Yibin Kangrun Medical Waste Centralized
Newly incorporated
Treatment Co., Ltd.
Yibin Kangrun Environmental Protection
Newly incorporated
Power Generation Co., Ltd.
Kangruncheng Environmental Technology Newly incorporated
26
Konka Group Co., Ltd. Interim Report 2021
(Yantai) Co., Ltd.
Shaanxi Konka Intelligent Appliance Co.,
Newly incorporated
Ltd.
Kangxin Semiconductor (Yantai) Co., Ltd. Newly incorporated
Yantai Kangyun Industrial Development
Equity transfer
Co., Ltd.
Beneficial to the development of the Company’s
Yantai Kangyun Property Development
Equity transfer relevant business and bring about a certain amount of
Co., Ltd.
gains
Shenzhen Kangxin Property Co., Ltd. Equity transfer
Henan Kanghan Property Co., Ltd. Equity transfer
Information about principal subsidiaries and joint stock companies:
None
IX Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
In regard to the CE business, color TVs, white household appliances, and mobiles have entered a
stock market. The industry is facing a bottleneck and fierce competition. Consequently, the
Company's business performance in the CE business fell slightly. The Company will adopt multiple
measures, such as raising R&D input, accelerating result conversion, integrating upstream and
downstream resources, intensifying business coordination, actively improving the sales structure,
and promoting high-end brands. In addition, it will endeavor to enhance its product competitiveness,
reinforce its intelligent manufacturing,continue to expand overseas business,improve user
operations, and reinforce internal management in order to proactively mitigate risks.
As for the semi-conductor business, facing the increasing R&D spending and uncertainties in the
R&D results, the Company will step up effort to expand business in the areas of storage,
optoelectronics and semi-conductor application and service, and make active steps to break through
the technological bottleneck of Micro LED business towards faster conversion and output of
technology.
27
Konka Group Co., Ltd. Interim Report 2021
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participat Date of the meeting Date of disclosure Resolutions of the meeting
ion ratio
The First Extraor
Announcement No. 2021-15 on the Resolutions of the
Extraordinary dinary
First Extraordinary General Meeting of 2021 of
General General 24.48% 15 Mar. 2021 16 Mar. 2021
Konka Group Co., Ltd., disclosed on
Meeting of Meetin
http://www.cninfo.com.cn/new/index
2021 g
The 2020 Annual Announcement No. 2021-37 on the Resolutions of the
Annual General 2020 Annual General Meeting of Konka Group Co.,
24.42% 19 Apr. 2021 20 Apr. 2021
General Meetin Ltd., disclosed on
Meeting g http://www.cninfo.com.cn/new/index
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with
Resumed Voting Rights
□ Applicable √ Not applicable
II Change of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Chairman of
the
Wang Youlai Supervisory Retired 15 Mar. 2021 Retired
Committee,
supervisor
Cai Weibin Supervisor Elected 15 Mar. 2021 Elected as supervisor by the general meeting
Chairman of
the Elected as Chairman of the Supervisory
Cai Weibin Elected 15 Mar. 2021
Supervisory Committee by the Supervisory Committee
Committee
III Interim Dividend Plan
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
28
Konka Group Co., Ltd. Interim Report 2021
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
29
Konka Group Co., Ltd. Interim Report 2021
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major
polluter by the environmental protection authorities.
√ Yes □ No
Nu
mbe
Way Distribu Exce
r of
Name of of tion of Discharge Total ssive
Name of disc Discharge Approved total
major disc dischar standards discha disc
polluter harg concentration discharge
pollutants harg ge implemented rge harg
e
e outlets e
outl
ets
Pollution
sources of
PH 6-9; total
waste
copper≤0.3mg/L;
water: PH,
COD≤50mg/L;
total Total discharge
ammonia
copper, 448,500
nitrogen≤8mg/L;
COD, Disc tons/year;
total
ammonia n harg pollutant COD
Main nitrogen≤15mg/L;
itrogen, e of 19.061250
dischar total 0.448
total stati GB 21900-2008 tons/year;
ge phosphorus≤0.5m 5
nitrogen, onar Discharge ammonia nitro
outlet g/L; total millio Non
total y 1 Standard For gen 3.0498
of the cyanide≤0.2mg/L; n e
XingDa phosphorus poll Pollutants From tons/year; total
waste total tons/y
HongYe , total utio Electroplating nitrogen
water nickel≤0.1mg/L; ear
cyanide, n 32.9792
station total iron≤2mg/L;
total sour tons/year; total
total
nickel, ces phosphorus
aluminum≤2mg/L
total iron, 0.2082
;
total tons/year
petroleum≤2mg/L
aluminum,
; suspended
petroleum,
solids≤30mg/L
suspended
solids
waste gas Disc Three sulfuric acid Emission Standard 2,986, Total
Non
pollutants: harg 14 on the fume≤30mg/m3; for Electroplating 560,0 discharge:
e
sulfuric e of roof of nitrogen Pollutants 00 2,986,560,000
30
Konka Group Co., Ltd. Interim Report 2021
acid fume, stati plant 1, oxide≤200mg/m3; GB21900-2008 standa standard
hydrogen onar ten on hydrogen Air Emission rd cube/year
chloride, y the roof chloride≤30mg/m Limits Table 5, cube/y (note: the total
formaldehy poll of plant 3; hydrogen Emission standard ear discharge is
de, utio 2 and cyanide≤0.5mg/m of Volatile not stated in
hydrogen n one on 3; Organic the latest
cyanide, sour the roof TVOC≤90mg/m3; Compounds for version of
nitrogen ces of the benzene≤1mg/m3; Printing Industry national
oxide, canteen toluene+xylene≤1 DB44/815-2010; discharge
ammonia, 5mg/m3; tin and Guangdong Air permit in 2021;
benzene, its Pollutant two exhaust
toluene+xy compounds≤8.5m Emission Standard towers were
lene, g/m3; DB44/27-2001 the added in 2021;
TVOC, tin PM(dust)≤120mg/ Second Level calculated
and its m3 Standard in the based on air
compounds Second Period, volume in
, PM(dust) Emission standard environmental
for Odor impact
Pollutants (GB assessment)
14554-1993)
Table 2 Standard
1. Emission 1. Discharge
standard for standard of
pollution discharge permit:
discharge Discharge
Total discharge
certificate: Standard of
amount is
copper≤0.5mg/L; Electroplating
318,300
Wastewate Disc COD≤80mg/L; Water Pollutant
318,3 tons/year;
r pollution: harg ammonia for Electroplating
Main 00 COD is 25.464
Boluo PH, e of nitrogen≤15mg/L; DB44/1597-2015
dischar tons/y tons/year;
Konka copper, stati total Table 1 Pearl
ge ear ammonia
and COD, onar nitrogen≤20mg/L; River Delta
outlet Note: nitrogen is Non
Boluo ammonia y 1 total Discharge
of the accord 4.775 e
Konka nitrogen, poll phosphorus≤1mg/ Standard; 2. Local
waste ing to tons/year; total
Precisio total utio L; 2. local discharge
water discha nitrogen is 4.8
n nitrogen, n emission standard: BFBH
station rge tons/year.
total sour standard: [2019] No. 58
permit Note:
phosphorus ces copper≤0.5mg /L; Document: COD,
according to
COD≤30mg/L; ammonia nitrogen,
the discharge
ammonia total phosphorus
certificate
nitrogen≤1.5mg/L based on
; total "Environmental
nitrogen≤10mg/L; Quality Standards
total for Surface Water
31
Konka Group Co., Ltd. Interim Report 2021
phosphorus≤0.3m GB3838-2002 "
g/L Category IV water
standard, the total
nitrogen discharge
reaches 50% of
discharge limit
requirement of the
corresponding
industry
waste
Emission Standard
gas polluta sulfuric acid
for Electroplating
nts: fume≤30mg/m3；
Pollutants
sulfuric nitrogen
GB21900-2008
acid fume, oxide≤200mg/m3
Air Emission
hydrogen Six on ；hydrogen
Disc Limits Table 5,
chloride, the roof chloride≤30mg/m
harg Guangdong Air
formaldehy of plant 3； The total
e of Pollutant
de,hydroge 1, TVOC≤90mg/m3 discharge is
stati Emission Standard
n cyanide, thirteen ； not stated in
onar DB44/27-2001 the
nitrogen on the benzene≤12mg/m the latest Non
y 20 Second Level /
oxide, roof of 3； version of e
poll Standard in the
ammonia, plant 2 methylbenzen≤40 national
utio Second Period,
benzene, and one mg/m3； discharge
n Emission standard
methylben in dimethylbenzene≤ permit in 2020
sour for Odor
zene, sewage 70mg/m3；tin and
ces Pollutants (GB
TVOC, tin station its
14554-1993)
and its compounds≤8.5m
Table 2 Standard,
compounds g/m3；PM（dust）
Emission standard
, PM ≤120mg/m3；oil
of cooking fume
(dust), oil fume≤2mg/m3
(GB18483-2001)
fume
(I) The construction of anti-pollution facilities and its operation situation
1. XingDa HongYe
All production equipment of Guangdong Xingda Hongye Electronics Co., Ltd. has been set up with
supporting environmental protection facilities according to the requirements of environmental
impact assessment. The discharge of wastewater, waste gas and noise as well as the disposal of all
solid wastes in the Company all met the standards during the Reporting Period.
The sewage treatment centre of Guangdong Xingda Hongye Electronics Co., Ltd. with an
investment of about RMB15 million was formally put into production in June 2007, and the
treatment capacity of the sewage treatment facility was 2,566 tons/day. After technical improvement
and expansion, the capacity increased to 2,900 tons/day with the treatment process remaining
unchanged. Currently, the sewage treatment facilities are functioning well and the main pollutant
discharge meets the discharge standards and environmental assessment standards. The pollutants are
discharged to Fushachong after being treated at the self-built sewage treatment station.
32
Konka Group Co., Ltd. Interim Report 2021
2. Boluo Konka and Boluo Konka Precision
All production equipment of Boluo Konka and Boluo Konka Precision has been reported for
environmental assessment, review and approval. The supporting environmental protection and
pollution control facilities have been designed by pollutant type and concentration and effectively
operated in a targeted manner. During the Reporting Period, the discharge standards were met in
terms of industrial waste water, exhaust and factory noise, and all industrial waste generated was
disposed of in compliance with environmental laws and regulations.
Boluo Konka was established in 2000. To manufacture single sided PCBs, it invested approximately
RMB 5 million in constructing a sewage treatment station without the biochemical treatment
function and featuring a discharge capacity of 300 tons per day. In 2007, Boluo Konka expanded its
factory by starting the Phase II project, which was submitted for environmental assessment as
Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project owner was
changed into Boluo Konka Precision). It spent about RMB 10 million on constructing the Phase II
sewage treatment station to add the biochemical treatment function with a discharge capacity of 800
tons per day.
In 2019, according to the requirements in the documents issued by Boluo County Ecology and
Environment Bureau, the two sewage treatment stations of Boluo Konka and Boluo Konka
Precision must be upgraded towards higher standards. Through comprehensive assessment of the
professional environmental protection company, it was decided that the sewage treatment stations of
the said companies be combined to meet the upgrading requirements. Boluo County Ecology and
Environment Bureau approved the combination of the discharge outlets of the aforementioned
companies, and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the
combination, the discharge capacity would reach 1,100 tons per day. The aforementioned
companies spent about RMB 20 million between 2019 and 2020 on upgrading the sewage treatment
stations towards higher standards, and added industrial advanced processes and treatment systems,
such as RO water treatment, Fenton oxidation and MBR films. After the technological
improvements and expansion, the sewage treatment reaches 2,200 tons per day (with a discharge
capacity of 1,100 tons per day) with a reuse rate of more than 60%. At present, the waste water
treatment facilities are operating in good conditions; the discharge of major pollutants meets the
discharge standards. After advanced treatment of the water reuse facilities, the water treated by the
sewage stations that meets the standards will be reused in the plants, while the remaining water will
be discharged to the municipal pipe network to be processed by the urban and rural water treatment
factory before being discharged to the Dongjiang River.
(II) Environmental impact assessment and other environmental protection administrative licenses of
the construction project
1. XingDa HongYe
Guangdong Xingda Hongye Electronics Co., Ltd. obtained the approval from Zhongshan
Environmental Protection Bureau (ZHJ [2004] No. 61) for the operations and construction here in
2004. Subsequently, it obtained the documents of ZHJD [2008] No. 06250 and ZHJD [2010] No.
04469 respectively in 2008 and 2010. After the operations of its original project, Guangdong
Xingda Hongye Electronics Co., Ltd. passed the two phases of acceptance assessment, including the
Phase I acceptance assessment in 2008 (HY [2008] No. 02) and the Phase II acceptance assessment
in 2012 (ZHYBG [2012] No. 000092).
In December 2012, Guangdong Xingda Hongye Electronics Co., Ltd. commissioned Zhongshan
33
Konka Group Co., Ltd. Interim Report 2021
Research Institute of Environmental Protection Science to conduct the assessment of environmental
impact for the technical improvement and expansion project of Guangdong Xingda Hongye
Electronics Co., Ltd. On 31 December 2012, it obtained the approval document titled Reply to the
Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co., Ltd. (ZHJS (2012) No. 115) from Zhongshan
Environmental Protection Bureau. The document granted the approval for addition of the
production of six-layer PCB, eight-layer PCB and above and HDI boards and for reduction of the
production of single-sided PCB. After the technical improvement and expansion, the total
production capacity of single-sided PCB would be 200,000 m2/year, of double-sided PCB would be
250,000 m2/year, of four-layer PCB would be 300,000 m2/year, of six-layer PCB would be 200,000
m2/year, of eight-layer PCB and above would be 150,000 m2/year and of HDI boards would be
100,000 m2/year. In the project, while the original plating equipment and processes remained
unchanged, the brown oxide process was added to the original production process; all the increased
plating capacity would be outsourced. The technical improvement and expansion project was
commenced in 2013 and completed in January 2018. The commissioning was carried out from 10
February 2018 to 8 July 2018. The construction of the project complied with the requirements for
environmental impact assessment and met the criteria for the acceptance of environmental
protection for the completion of construction projects. In 2021, the Company renewed/changed the
state sewage permit, certificate No.: 91442000768405216J001P.
2. Boluo Konka and Boluo Konka Precision
In 2000, Boluo Konka obtained the approval from the Huizhou Municipal Ecology and
Environment Bureau (HSHJ [2000] No. 23). The project was completed and put into operation in
the same year. The pollutant discharge permit No. is 91441322721121283N001U.
In January 2007, Boluo Konka appointed Huizhou Institute of Environmental Sciences to conduct
the environmental impact assessement of the Boluo Konka Expansion Project. On February 8, 2007,
Boluo Konka received the Document of Approval for the Environmental Impact Report on the
Project of Boluo Konka Double Sided and Multi-Layer Boards (HSHJ [2007] No. J32). According
to the Document, approval was given to the addition of double sided and multi-layer circuit boards
in the project expansion. The production capacity for single sided circuit boards would reach 1
million square meters per year, and double sided and multi-layer circuit boards would reach
650,000 square meters per year after the project expansion. In addition, electroplating equipment
and process would be added in the expansion project. The construction of the project met the
environmental assessment requirements and satisfied the conditions for the environmental
protection in the project inspection and acceptance. The pollutant discharge permit was obtained in
the same year. The aforementioned project was later renamed as Boluo Konka Precision. In 2020,
Boluo Konka Precision obtained the national pollutant discharge permit with the permit No.
91441322799316208F001V.
(III) Contingency plan for emergent environmental incident
1. XingDa HongYe
In strict accordance with requirements of laws, regulations and relevant documents, such as Law of
the People’s Republic of China on Emergency Response and Interim Measures on Environmental
Emergency Response Plan, Guangdong Xingda Hongye Electronics Co., Ltd. has established risk
prevention measures and emergency response plans, kept its emergency equipment in a normal state,
formulated the Contingency Plan for Emergent Environmental Incident, and put on records at
34
Konka Group Co., Ltd. Interim Report 2021
Zhongshan Environmental Protection Bureau, Guangdong Province, record No.: 4420002017044M.
In addition, the Company conducts a drill of major environmental pollution incident on its factory
to enhance its emergency response capabilities for emergent environmental pollution incidents.
Furthermore, Guangdong Xingda Hongye Electronics Co., Ltd. has built an emergency pool (which
is the comprehensive water tank in the sewage treatment station covering an area of 800m3) and set
up a fire pool (500m3 and located on Floor 1 of Factory Building No. 2), which serve as temporary
storage pools for exterior drainage or fire drainage to eradicate accidental discharge of wastewater
in the case of failed operation of the sewage transmission pipeline or fire accident due to outage or
other special circumstances. The sewage transmission pipeline has been equipped with
anti-corrosion and cathodic protection using anti-corrosion pipes and carbon steel pipes. Pursuant to
the new discharge standards, the related discharge pipeline has been modified and the production
department has been required to discharge strictly in accordance with discharge standards to cut the
costs of wastewater treatment. Different types of wastewater are normally and properly treated
through fine shunting. Personnel have been specially arranged to manage the chemical liquid
warehouse and exert reasonable control and requirements over the liquid discharge by the plant and
timely transportation of the liquid by suppliers; emergency tools such as protective masks, boots
and immiscible pumps have been equipped.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the
People's Republic of China, Interim Measures for the Management of Emergency Plans for
Unexpected Environmental Incidents, other related laws and regulations as well as the requirements
of relevant documents. They have established risk prevention measures and emergency plans, such
as Emergency Plan for Unexpected Environmental Incidents, and have their emergency equipment
run in a normal status. In addition, they have filed with Boluo County Branch of Ecology and
Environment Bureau in Huizhou, Guangdong and Huizhou Ecology and Environment Bureau
respectively with the file No. 441322-2020-0073-M and 441301-2021-004-M. They organize all
staff to conduct drills for major environmental pollution incidents every year to improve their
ability for the emergency response to unexpected environmental pollution incidents.
Boluo Konka and Boluo Konka Precision are well equipped with all necessary facilities for
emergency response to unexpected incidents, including an emergency response pool of industrial
waste water (500m3, under the ground of the sewage treatment station) and a firefighting reservoir
(300m3, located beside the staff dormitory building). In the event of an unexpected environmental
incident, such as leakage or failure of a waste water transporting pipe, the emergency response pool
will prevent any accident of industrial waste water; in the event of a fire safety accident, the
firefighting reservoir will be put into use. All departments are required to discharge pollutants
strictly in accordance with pollutant discharge standards to reduce the costs of waste water
treatment by properly and reasonably dividing solution and waste water discharged from the plants.
The chemical warehouses are managed by designated personnel, with standard control and
requirements over the loading and unloading of chemical products by suppliers. In terms of
emergency response supplies, a full set of emergency rescue tools are prepared, including gas masks,
acid and alkaline resistant boots, gloves, goggles, safety ropes, helmets, fire sand and submersible
pumps.
(IV) Environmental self-monitoring plan
1. XingDa HongYe
35
Konka Group Co., Ltd. Interim Report 2021
According to the requirements of the Environmental Protection Administration, Xingda Hongye
attaches great importance to environmental monitoring management. Thus, pursuant to the
Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises,
the Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co., Ltd. and the reply opinions for environmental impact
assessment, the Company has formulated the Environmental Self-Monitoring Plan and reported to
the municipal environmental protection bureau for approval and record. It implements online
monitoring for the PH, COD and ammonia nitrogen pollutants discharged in wastewater through
real-time monitoring and an automatic frequency of every two hours, entrusts the qualified
third-party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment, and
entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring.
All self-monitoring plan results will be reported and disclosed on public platforms on a periodic
basis.
In the case of normal production, the results will be updated on a daily basis, with online
monitoring data disclosed in real time and manual monitoring data disclosed on the Real time
publicity or every 2 hours after completion. Items monitored on a monthly basis will be disclosed
by the 10th day of the month. In the case of public holidays, the operation monitoring data for the
holiday period will be disclosed on the first working day after the holiday. The annual
self-monitoring report for the previous year will be disclosed at the end of January each year. In the
case of shutdown with days off, the number of days off will be indicated in the information bar and
related proofs will be submitted to the monitoring center of the municipal environmental bureau for
record. The results are disclosed on Guangdong Province Key Pollution Source Regulatory
Information Platform and on National Pollution Source Monitoring Information Management and
Sharing Platform for public monitoring.
2. Boluo Konka and Boluo Konka Precision
In line with the requirements of environmental departments, Boluo Konka and Boluo Konka
Precision attach great importance to environmental monitoring and management. Based on the
Measures for the Self-Monitoring and Information Publicity of Enterprises under National Key
Monitoring, Environmental Impact Report and the opinions stated in reply to the environmental
assessment, they have established the Environmental Self-Monitoring Plan of Enterprises and filed
a record with the municipal ecology and environment bureau. According to the plan, they have
installed an online monitoring system to monitor the PH value, total flow, COD, ammonia nitrogen
and total phosphorus of the waste water, and networked with the ecology and environment bureau.
They appoint a qualified third-party online monitoring equipment operation and maintenance
organization to perform regular maintenance of the automatic monitoring equipment and the
monitoring data networking equipment, and a qualified third-party monitoring organization to
perform the monitoring of the “three wastes”. All self-monitoring results will be reported and
published on public platforms and subject to public monitoring.
(V) Administrative punishments received in the Reporting Period due to environmental issues
No such cases in the Reporting Period.
(VI) Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co., Ltd. for
36
Konka Group Co., Ltd. Interim Report 2021
H1 2021 was approximately RMB8 million, mainly used for the treatment of sewage, waste gas and
solid waste, as well as the maintenance and upgrading of environmental protection equipment.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision invested approximately RMB4.65 million on
environmental protection in H1 2021 in total, mainly used for the daily management of waste water
and gas.
(VII) Other Environmental Information
According to the examination by the Company, the Company and its other holding subsidiaries are
not key pollutant units. All have faithfully implemented the laws and regulations related to
environmental protection, such as Environmental Protection Law of the People's Republic of China,
Water Pollution Prevention and Control Law of the People's Republic of China, Law of the People's
Republic of China on the Prevention and Control of Atmospheric Pollution, Law of the People's
Republic of China on Prevention and Control of Pollution From Environmental Noise, Law of the
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Waste in the daily production and operation, without being punished for violations of laws and
regulations during the Reporting Period.
II Social Responsibility
The Company insists the principle of health, stability and sustainable development to benefit
shareholders and employees and satisfy customers. In pursuit of economic profits and protection of
shareholders’ profits, the Company is active in protecting legal rights of debtors and employees,
treating suppliers, customers and consumers in good faith, and participating in environmental
protection and community establishment for harmonious development of the Company and society.
1. To protect rights of shareholders and creditors
(1) The Company protects rights of shareholders
The Company insists protection of rights for all shareholders, especially equal status and legal
rights for medium and small shareholders, and make insurance of rights to be informed,
participation and vote.
The Company would perform all obligations of information disclosure to ensure timely, accurate
and complete information and strictly execute confidential system of registrar and insider
information to guarantee justice.
The Company pays attention to repay to shareholders, and insists mutual development with
investors. In the previous three years, the Company shares dividends with all shareholders. The
Company strict executes dividend policies regulated in Articles of Association. All cash dividends
comply with regulations in Articles of Association and requirements in shareholders’ conference.
(2) The Company protects rights of creditors
In full consideration of legal rights of creditors, the Company complies with strict business rules of
credit cooperation to guarantee legal rights of creditors. No damages upon rights of creditors
happened.
2. The Company performs responsibilities to suppliers and customers
37
Konka Group Co., Ltd. Interim Report 2021
(1) It is devoted to improve customer service quality.
The Company is insisting philosophy of customer orientation to strengthen customer service
management, service consciousness for employees, service levels and to protect rights for
customers. Through customer service hot-line, field visit and follow-up service, the Company has
set a good corporate image for customers.
(2) Be honest to suppliers
Following the principle of integrity and mutually beneficial cooperation, the Company keeps good
cooperative relations with suppliers at each level. The corporate principle is open, fair and impartial
to standardize procurement, protect suppliers’ legal rights and lay solid foundation for further
cooperation.
3. Be enthusiastic to social and public welfare undertakings
Based on the principle of appreciating and repaying the society, the Company has participated in all
kinds of activities for public welfare, cooperated with society, undertaken social responsibilities
actively and promoted harmonious development between enterprise and society.
In H1 2021, the Company paid a total of over RMB700,000 to Tianzhu County and Sanshui County
in Guizhou Province as donations and for agricultural product purchases.
4. Be responsible for employees
The Company insists the principle of people orientation to improve working environment, promote
occupational skills, provide opportunity and platform for development and growth and encourage
self upgradation and realization for employees. Mutual improvement for employees and enterprise
could be achieved.
(1) Be honest and law-abiding to protect legal rights for employees
The Company would strictly comply with laws and regulations in Labor Law and Labor Contract
Law to sign labor contract with employees with fair treatment in employment, payment, promotion,
training, demission and retirement. Also, the Company would pay all kinds of insurances and
housing fund for employees. Regular physical examination would be organized for each year. Any
problems found would require re-examination and consultation from a doctor.
The Company would improve living quality; enhance cohesive force and sense of belongings
through a series of safeguard measures.
(2) To protect occupational health for employees
The Company would establish and perfect training, safety assessment by security system to
guarantee the safety and occupational health for employees. On the other hand, by promotion of the
importance of safety, safety awareness would be rooted in the heart to make all employees abide by
safety standards and fully play subjective initiative in protecting self-occupational safety and
production safety.
(3) To promote occupational skills by diversified professional training
38
Konka Group Co., Ltd. Interim Report 2021
The Company has always paid great attention on diversified training for employees. On the one
hand, the Company would be meticulous in training of regular business and occupational skills and
carry out all requirements positively to improve professional levels by normal training management.
On the other hand, the Company would establish methods of self-training platform, training
instructor, theme training and lectures to provide colorful training activities. Besides the work,
professional and comprehensive quality would be fully promoted.
5. Be responsible for environment
The Company concerns about environmental changes and close relationships with environment by
creating low carbon economy in technical innovation, from green manufacturing, green products to
green industry circular economy. The Company would provide efforts in protecting global
ecological environment. In June 2012, subsidized products catalogue had been released jointly by
National Development and Reform Commission, Ministry of Industry and Information and Ministry
of Finance.
Subsequently, the Company would undertake all social responsibilities by improving strategic
management, sustainable development and enterprise economic efficiency. It would reattribute all
shareholders and would protect legal rights for creditors and employees. To be honest to suppliers
and customers, the Company would serve local economic development and participate in social
public welfare activities and environment protection. It would undertake all responsibilities in many
fields and make attributions to social, economic, and environmental sustainable development for a
socialism harmonious society.
39
Konka Group Co., Ltd. Interim Report 2021
Part VI Significant Events
I Commitments of the Company’s De Facto Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting Period
or Ongoing at the Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□ Yes √ No
The interim financial statements of the Company have not been audited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting
Period
□ Applicable √ Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable √ Not applicable
VII Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits and arbitrations:
√ Applicable □ Not applicable
Invol Index to
Discl
ved Provisi Execution of disclosed
General information Progress Decisions and effects osure
amou on decisions informatio
date
nt n
40
Konka Group Co., Ltd. Interim Report 2021
(RM
B’0,0
00)
Due to dispute arisen form a sales The The public notice of the
contract, the Company’s public second instance
subsidiary Konka Huanjia filed a notice of judgment is being
lawsuit to request Dalian the delivered. Based on the 19 http://www
The public notice of
Jinshunda Material Recycling Co., 9,383 second principle of prudence, Septe .cninfo.co
Not the judgment is being
Ltd., Huanjia Group, Wang .08 instance the Company has made mber m.cn/new/i
delivered.
Bingde, Zhang Xueyin, Wang judgment corresponding provision 2020 ndex
Renping to return the advance is being for impairment
payment and pay liquidated delivered according to accounting
damages. . policies.
The The public notice of the
Due to dispute arisen form a sales
public second instance
contract, the Company’s
notice of judgment is being
subsidiary Konka Huanjia filed a
the delivered. Based on the 19 http://www
lawsuit to request Dalian Xinjie The public notice of
9,383 second principle of prudence, Septe .cninfo.co
Renewable Resources Co., Ltd., Not the judgment is being
.08 instance the Company has made mber m.cn/new/i
Huanjia Group, Wang Bingde, delivered.
judgment corresponding provision 2020 ndex
Zhang Xueyin, Wang Renping to
is being for impairment
return the advance payment and
delivered according to accounting
pay liquidated damages.
. policies.
The The public notice of the
Due to dispute arisen form a sales
public second instance
contract, the Company’s
notice of judgment is being
subsidiary Konka Huanjia filed a
the delivered. Based on the 19 http://www
lawsuit to request Liantianxing The public notice of
2,307 second principle of prudence, Septe .cninfo.co
Renewable Resources Co., Ltd., Not the judgment is being
.90 instance the Company has made mber m.cn/new/i
Huanjia Group, Wang Bingde, delivered.
judgment corresponding provision 2020 ndex
Zhang Xueyin, Wang Renping to
is being for impairment
return the advance payment and
delivered according to accounting
pay liquidated damages.
. policies.
Due to dispute arisen form a sales The The public notice of the
contract, the Company’s public second instance
subsidiary Konka Huanjia filed a notice of judgment is being
lawsuit to request Huanjia Mingtai the delivered. Based on the 19 http://www
The public notice of
(Dalian) Renewable Resources 3,302 second principle of prudence, Septe .cninfo.co
Not the judgment is being
Co., Ltd., Huanjia Group, Wang .64 instance the Company has made mber m.cn/new/i
delivered.
Bingde, Zhang Xueyin, Wang judgment corresponding provision 2020 ndex
Renping to return the advance is being for impairment
payment and pay liquidated delivered according to accounting
damages. . policies.
41
Konka Group Co., Ltd. Interim Report 2021
Due to dispute arisen form a sales The The public notice of the
contract, the Company’s public second instance
subsidiary Konka Huanjia filed a notice of judgment is being
lawsuit to request Lankao Shunjia the delivered. Based on the 19 http://www
The public notice of
Renewable Resources Recycling 3,358 second principle of prudence, Septe .cninfo.co
Not the judgment is being
Co., Ltd., Huanjia Group, Wang .80 instance the Company has made mber m.cn/new/i
delivered.
Bingde, Zhang Xueyin, Wang judgment corresponding provision 2020 ndex
Renping to return the advance is being for impairment
payment and pay liquidated delivered according to accounting
damages. . policies.
Due to dispute arisen form a sales The The public notice of the
contract, the Company’s public second instance
subsidiary Konka Huanjia filed a notice of judgment is being
lawsuit to request Henan the delivered. Based on the 19 http://www
The public notice of
Shunhenghui Renewable 3,337 second principle of prudence, Septe .cninfo.co
Not the judgment is being
Resources Recycling Co., Ltd., .29 instance the Company has made mber m.cn/new/i
delivered.
Huanjia Group, Wang Bingde, judgment corresponding provision 2020 ndex
Zhang Xueyin, Wang Renping to is being for impairment
return the advance payment and delivered according to accounting
pay liquidated damages. . policies.
Due to dispute arisen form a sales The The public notice of the
contract, the Company’s public second instance
subsidiary Konka Huanjia filed a notice of judgment is being
lawsuit to request Henan Jiaxin the delivered. Based on the 19 http://www
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Renewable Resources Recycling 3,358 second principle of prudence, Septe .cninfo.co
Not the judgment is being
Co., Ltd., Huanjia Group, Wang .09 instance the Company has made mber m.cn/new/i
delivered.
Bingde, Zhang Xueyin, Wang judgment corresponding provision 2020 ndex
Renping to return the advance is being for impairment
payment and pay liquidated delivered according to accounting
damages. . policies.
Due to dispute arisen form a sales The The public notice of the
contract, the Company’s public second instance
subsidiary Konka Huanjia filed a notice of judgment is being
lawsuit to request Henan the delivered. Based on the 19 http://www
The public notice of
Shengxiang Renewable Resources second principle of prudence, Septe .cninfo.co
2,922 Not the judgment is being
Recycling Co., Ltd., Huanjia instance the Company has made mber m.cn/new/i
delivered.
Group, Wang Bingde, Zhang judgment corresponding provision 2020 ndex
Xueyin, Wang Renping to return is being for impairment
the advance payment and pay delivered according to accounting
liquidated damages. . policies.
Due to dispute arisen from a 19 http://www
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filed a lawsuit with Nanqiao mber m.cn/new/i
42
Konka Group Co., Ltd. Interim Report 2021
People’s Court of Chuzhou to 2020 ndex
request the Company’s subsidiary
Anhui Tongchuan to return the
performance bond, pay
transportation costs and interests
incurred, and bear the litigation
costs.
Due to dispute arisen from a sales
19 http://www
contract, Zhao Yonghong filed a
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lawsuit with the court to request Not In retrial In retrial Pending
4 mber m.cn/new/i
the Company’s Konka Huanjia to
2020 ndex
pay for goods.
Because of a dispute over real
rights granted by way of security,
the Company's subsidiary, Henan The case
http://www
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8,242 The case is being filed .cninfo.co
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ndex
(Huizhou) Co., Ltd., requiring it to case.
exercise the real rights granted by
way of security.
Because of a dispute over a
purchase and sales contract, the The The public notice on the
Company's subsidiary, Jiahuanjia public second instance
Eco-protection Technology Co., notice on judgment is being
Ltd., sued Henan Huanjia the delivered. Based on the http://www
The public notice on 1
Chengxin Eco-protection 3,358 second principle of prudence, .cninfo.co
Not the judgment is being June
Technology Co., Ltd., Huanjia .80 instance the Company has made m.cn/new/i
delivered. 2021
Group Co., Ltd., Wang Bingde, judgment corresponding provision ndex
Zhang Xueyin, and Wang is being for impairment
Renping, requiring them to return delivered according to accounting
the advance payment and pay the . policies.
liquidated damages.
Because of a dispute over a
The The public notice on the
purchase and sales contract, the
public second instance
Company's subsidiary, Jiahuanjia
notice on judgment is being
Eco-protection Technology Co.,
the delivered. Based on the http://www
Ltd., sued Henan Xincheng The public notice on 1
3,358 second principle of prudence, .cninfo.co
Renewable Resource Recycling Not the judgment is being June
.80 instance the Company has made m.cn/new/i
Co., Ltd., Huanjia Group Co., delivered. 2021
judgment corresponding provision ndex
Ltd., Wang Bingde, Zhang
is being for impairment
Xueyin, and Wang Renping,
delivered according to accounting
requiring them to return the
. policies.
advance payment and pay the
43
Konka Group Co., Ltd. Interim Report 2021
liquidated damages.
Because of a dispute over real
rights granted by way of security,
the Company's subsidiary, Henan The case
http://www
Xinfei Refrigeration Appliances is being 1
2,801 The case is being filed .cninfo.co
Co., Ltd., sued Chuangfu Business Not filed as a Pending June
.94 as a different case. m.cn/new/i
Square Real Estate Development deferent 2021
ndex
(Huizhou) Co., Ltd., requiring it to case.
exercise the real rights granted by
way of security.
Because of a dispute over a
The The public notice on the
purchase and sales contract, the
public second instance
Company's subsidiary, Jiahuanjia
notice on judgment is being
Eco-protection Technology Co.,
the delivered. Based on the http://www
Ltd., sued Henan Guozheng The public notice on 1
second principle of prudence, .cninfo.co
Eco-protection Technology Co., 2,090 Not the judgment is being June
instance the Company has made m.cn/new/i
Ltd., Huanjia Group Co., Ltd., delivered. 2021
judgment corresponding provision ndex
Wang Bingde, Zhang Xueyin, and
is being for impairment
Wang Renping, requiring them to
delivered according to accounting
return the advance payment and
. policies.
pay the liquidated damages.
Because of a dispute over a
construction project contract,
Road & Tunnd Group Guangan http://www
1
Works Co., Ltd. filed a lawsuit 15,33 In first .cninfo.co
Not In first trial Pending June
with the court, requiring the 6.35 trial m.cn/new/i
2021
Company's subsidiary, Subei ndex
Kangrun Water Affairs Co., Ltd.,
to pay the construction cost.
Note: Courts or arbitration bodies ruled in favor of the Company in the following cases which are currently under enforcement. Details of these cases
can be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2019-63) and the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97) and the
Company's periodic reports: a) As matured notes were failed to be accepted, the Company has filed a lawsuit with the court to request China Energy
Electric Fuel Co., Ltd., China Energy (Shanghai) Enterprise Co., Ltd.., Shanghai Nengping industrial Co., Ltd., and Shenzhen Qianhai Baoying
Factoring Co., Ltd. to pay the bill and the corresponding interest to the Company. b) As matured notes were failed to be accepted, the Company has
filed a lawsuit with the court to request Shanghai Huaxin International Group Co., Ltd. and Tianjin International Trade Petrochemical Co., Ltd. to pay
the bill and the corresponding interest to the Company. c) As matured notes were failed to be accepted, the Company has filed a lawsuit with the court
to request Shanghai Huaxin International Group Co., Ltd. Qingdao Bonded Zhongshe International Trading Co., Ltd. and Shenzhen Qianhai Benniu
Agricultural Technology Co., Ltd. to pay the bill and the corresponding interest to the Company. d) As matured notes were failed to be accepted, the
Company has filed a lawsuit with the court to request Hefei Huajun Trading Co., Ltd. and Wuhan Jialian Agricultural Technology Development Co.,
Ltd. to pay the bill and the corresponding interest to the Company. e) Due to dispute arisen from a logistics contract, the Company’ subsidiary Anhui
Konka filed a lawsuit to request the freight forwarder Shanghai Triangle Link Logistics Co., Ltd. Shenzhen Branch to make compensation. f) Due to
contract dispute, the Company’s subsidiary Shenzhen Nianhua applied for arbitration to request the respondent Fang Xianglong and Jiang Yan to
make compensation for corresponding annual profit and fund possession cost. g) Due to payment dispute, the Company’s subsidiary Hong Kong
44
Konka Group Co., Ltd. Interim Report 2021
Konka applied for an arbitration to Shenzhen Court of International Arbitration to request the respondent Makena Electronic (Hong Kong) to pay for
goods and liquidated damages.
The following cases have been disclosed in temporary announcements and periodic reports and there is no further progress. Details of these cases can
be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2020-97) and the Announcement on Accumulated Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) and the
Company's periodic reports: a) As matured notes were failed to be accepted, Konka Factoring has filed a lawsuit with the court to request Tahoe
Group Co., Ltd., Fuzhou Taijia Enterprise Co., Ltd., and Xiamen Lianchuang Microelectronics Co., Ltd. to pay the bill and the corresponding interest
to Konka Factoring. b) The customer of Hong Kong Konka, H-BUSTER SAO PAULO INDUSTRIAE COMERCIO S.A (Brazil) was insolvent, and
obtained the approval of the judicial reorganization application of Cotia Third Civil Court of the Court of Sao Paulo, Brazil in May 2013. As the
creditor of H-BUSTER, Hong Kong Konka filed the debt declaration documents, and in August 2014, the amount confirmed of debt was USD2.78
million. c) Due to the Jiangxi Xinxin Jian’an Engineering Co., Ltd. (hereinafter referred to as the “Jiangxi Xinxin”), Jiangxi Shanshi Technology
Development Co., Ltd. (hereinafter referred to as the “Jiangxi Shanshi”), Jiangxi Zhongyi Decoration Materials Co., Ltd. (hereinafter referred to as
the “Jiangxi Zhongyi”) failed to repay the loan and its interest of China Great Wall AMC Jiangxi Branch (hereinafter referred to as the “Great Wall
Jiangxi Branch”), the Great Wall Jiangxi Branch sued to the court, and required Jiangxi Xinxin, Jiangxi Shanshi, Jiangxi Zhongyi to repay RMB300
million with RMB108,000 liquidated damages, and RMB13.65 million of interest. Meanwhile, 9 guarantors including Jiangxi Konka, Xinfeng
Microcrystalline and Nanocrystal are required to undertake joint liability guaranty. The judgment of first instance required that Jiangxi Xinxin, Jiangxi
Zhongyi and Jiangxi Shanshi shall repay the principal, interest and liquidated damages to Great Wall Jiangxi Branch and the guarantors bear the joint
liability for satisfaction to the debts. The defendants have appealed against the first instance judgment. Later, the court of second instance ruled that
the case should be returned to the court of first instance for retrial. d) Due to the dispute of sales contract, Wumart Stores, Inc. sued the Beijing Branch
of Wumart to the court of Shijingshan District of Beijing, and requested the Beijing Branch to return the prepayment of goods. e) Due to dispute
arisen from an advertising contract, the Company ’ s subsidiary E2info filed a lawsuit with Nanshan District Court of Shenzhen Municipality to
request Tansuo Media to pay the principal due and liquidated damages. f) Due to dispute arisen from a loan contract, the Company filed a lawsuit to
the court to request Chongqing Qingjia Electronics Co., Ltd. to repay the loan and interest. g) As matured notes were failed to be accepted, the
Company filed a lawsuit with the court to request Wuhan Jialian Agricultural Technology Development Co., Ltd. to pay the bill and corresponding
interest to the Company. h) Due to payment dispute, the Company’s subsidiary Anhui Electrical Appliance applied for an arbitration to Chuzhou
Arbitration Commission to request the respondent Makena Electronic (Shenzhen) to make guarantee. i) Due to contract dispute, the Company filed a
lawsuit with Zhengzhou Intermediate People’s Court to request Henan Radio and Television Network Co., Ltd. to pick up goods and make payment
and liquidated damages according to the contract. j) Due to condominium ownership dispute, the owners’ committee of Jingyuan Building filed a
lawsuit to request Zhongfang Group Nanfang Real Estate Co., Ltd. to make supplementary payment of maintenance fund. Zhongfang Group Nanfang
Real Estate Co., Ltd. submitted a defense on the ground that the Company jointly developed Jingyuan Building, and the Company was filed as the
defendant. k) Because of a dispute over capital increase, the Company's subsidiary, Shenzhen Konka Investment Holding Co., Ltd., applied for
arbitration with the Shenzhen Court of International Arbitration (SCIA), requesting the respondents, Elion Resources Group and Elion Ecological, to
perform the repurchase obligation. l) Because of a dispute over a purchase and sales contract, the Company's subsidiary, Dongguan Konka Electronic
Co., Ltd., filed a lawsuit with the People's Court of Nanshan District of Shenzhen, requesting Dongguan Gaoneng High Polymer Materials Co., Ltd.,
Wang Dong, Shenzhen Xinlian Xingyao Trade Co., Ltd., Shenzhen Jinchuan Qianchao Network Technology Co., Ltd., Puning Junlong Trade Co.,
Ltd., and Huang Zhihao to pay the overdue loan and the corresponding liquidated damages. m) Because of a dispute over a purchase and sales
contract, the Company's subsidiary, Jiahuanjia Eco-protection Technology Co., Ltd., sued Zhejiang Jiade Renewable Resource Recycling Co., Ltd.,
Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin, and Wang Renping, requiring them to return the advance payment and pay the liquidated
damages. n) Because of a dispute over a purchase and sales contract, the Company's subsidiary, Jiahuanjia Eco-protection Technology Co., Ltd., sued
Zhejiang Zhijie Renewable Resource Recycling Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin, and Wang Renping, requiring them
to return the advance payment and pay the liquidated damages. o) Because of a dispute over a purchase and sales contract, the Company's subsidiary,
Jiahuanjia Eco-protection Technology Co., Ltd., filed a lawsuit against Zhejiang Xinkai Renewable Resource Recycling Co., Ltd., Huanjia Group Co.,
Ltd., Wang Bingde, Zhang Xueyin, and Wang Renping, requesting them to return the advance payment and pay the liquidated damages. p) Because of
a dispute over real rights granted by way of security, the Company's subsidiary, Anhui Konka Electronic Co., Ltd., sued Huang Ruirong, requiring the
45
Konka Group Co., Ltd. Interim Report 2021
latter to exercise the real rights granted by way of security.
Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
√ Applicable □ Not applicable
The Company as well as its controlling shareholder and de facto controller were at a sound credit
standing during the Reporting Period. Neither of them is found to have failed to execute any valid
court decision or have failed to repay any debt of a large amount that is due.
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
Obtaina
As %
ble Index
Relatio of total Approv
Over market to
nship Specifi Total value ed Method
Type of Pricing Transac the price Disclos discl
Related with c value of all transact of
transact principl tion approv for ure osed
party the transact (RMB’ same-ty ion line settlem
ion e price ed line same-ty date infor
Compa ion 0,000) pe (RMB’ ent
or not pe matio
ny transact 0,000)
transact n
ions
ions
OCT
Propert
Enterpr Purchas
Under y
ises e of
the
commo manage Negotia
Co., same Market 3,494.0 24 Mar.
dities ment, ted 0.61% 10,000 Not Cash N/A http:/
Ltd and actual price 9 2021
and utilities price /ww
its controll
service , office
er w.cni
subsidi
s leases nfo.c
aries
om.c
OCT TVs,
n/ne
Enterpr Sales intellig
Under w/ind
of
ises ent
the ex
goods Negotia
Co., same termina Market 1,444.3 24 Mar.
and ted 0.23% 10,000 Not Cash N/A
Ltd and actual ls, etc. price 8 2021
service price
its controll and
s
subsidi er related
aries service
46
Konka Group Co., Ltd. Interim Report 2021
s
4,938.4
Total -- -- -- 20,000 -- -- -- -- --
7
Large-amount sales return in detail N/A
The Company has published the Forecasting Public Notice on Routine Related-party Transaction for Y2021
Give the actual situation in the Reporting
on Securities Times, Shanghai Securities News, and China Securities Journal as well as the Internet website
Period (if any) where an estimate had
designated by CSRC http://http://www.cninfo.com.cn/new/index on 24 March 2021. In the Reporting Period,
been made for the total value of
the basis for pricing, transaction price, transaction amount and settlement methods of raw materials
continuing related-party transactions by
purchased by the Company were basically in accordance with the forecast. The total amount was
type to occur in the Reporting Period
RMB49.3847 million.
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity
Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for
non-operating purposes.
√ Yes □ No
Credits receivable with related parties:
Whether
Increased in Recovered Interest in
there is
Beginning the in the the Ending
occupation
Related Related Forming balance Reporting Reporting Reporting balance
on Interest rate
party relationship reason (RMB’0,00 Period Period Period (RMB’0,00
non-operati
0) (RMB’0,00 (RMB’0,00 (RMB’0,00 0)
ng capital or
0) 0) 0)
not
Demand
Yibin OCT Subsidiary
of
Sanjiang of
business Not 7,500.00 0 3,500.00 5.70% 143.44 4,000.00
Properties controlling
developm
Co., Ltd. shareholder
ent
Chuzhou Subsidiary Demand
Not 16,084.74 0 311.10 7.00% 525.55 15,773.64
Kangjin of of
47
Konka Group Co., Ltd. Interim Report 2021
Health controlling business
Industry shareholder developm
Developmen ent
t Co., Ltd.
Effects of credits with
No effect to the normal operation of the Company. Other shareholders of Yibin OCT Sanjiang Properties Co., Ltd. and
related parties on the
Chuzhou Kangjin Health Industry Development Co., Ltd. offer financial assistance under the same conditions in
Company’s operating results
accordance to their shareholding ratio.
and financial conditions
Liabilities payable with related parties:
Increased in Recovered in Interest in the
Related Beginning Ending
Forming the Reporting the Reporting Reporting
Related party relationshi balance Interest rate balance
reason Period Period Period
p (RMB’0,000) (RMB’0,000)
(RMB’0,000) (RMB’0,000) (RMB’0,000)
2,406.00 0 2,406.00 4.56% 23.16 0
8,700.00 0 8,700.00 4.56% 83.75 0
50,000.00 0 38,894.00 4.22% 582.14 11,106.00
The Company
OCT
Controlling applies 0 50,000.00 0 4.34% 753.47 50,000.00
Enterprises
shareholder entrusted loan
Co., Ltd. 0 50,000.00 0 4.34% 717.31 50,000.00
to it
0 50,000.00 0 4.34% 632.92 50,000.00
0 50,000.00 0 4.56% 456.00 50,000.00
0 50,000.00 0 4.56% 95.00 50,000.00
Effects of liabilities with
related parties on the The Company applies entrusted loan from OCT Enterprises Co., Ltd. which meets the needs of the company's existing
Company’s operating results business development and reduces the financing cost.
and financial conditions
5. Transactions with Related Finance Companies or Finance Companies Controlled by the
Company
□ Applicable √ Not applicable
No such cases in the Reporting Period.
6. Other Major Related-Party Transactions
√ Applicable □ Not applicable
(1) Provide security limit to Shareholding Related Company: The Proposal on Providing Security
Limit to Yibin OCT Sanjiang Real Estate Co., Ltd. was reviewed and passed at the 40th Meeting of
the Ninth Board of Directors held on March 22, 2021, and the 2020 Shareholders' General Meeting
on April 19, 2021, which decided that the Company will continue to provide Yibin OCT Sanjiang
Real Estate Co., Ltd. with a security limit of RMB400 million at the shareholding ratio with a term
of three years, after the security limit, reviewed and passed at the 2018 Third Extraordinary General
Meeting, is due. Yibin OCT Sanjiang Real Estate Co., Ltd. will use this security limit to apply for a
loan with the bank. Other shareholders of Yibin OCT Sanjiang Real Estate Co., Ltd. will provide
48
Konka Group Co., Ltd. Interim Report 2021
security to it at their respective shareholding ratios.
(2) Providing advertising services to OCT Group: At the 42nd Meeting of the Ninth Session of the
Board of Directors on 28 May 2021, the Company considered and approved the Proposal on
Providing Advertising Services to OCT Group. According to the decision, the Company would
provide OCT Group (inclusive of its subsidiaries) with advertising services at intelligent terminals
with a service transaction price of no more than RMB100 million.
(3) Transfer 70% of the equity in Shenzhen Yipingfang Network Technology Co., Ltd.: The
Proposal on Transfer of Some of Equity in Shenzhen Yipingfang Network Technology Co., Ltd. was
reviewed and approved at the 44th Meeting of the Ninth Board of Directors of the Company held on
August 2, 2021 and later at the 2nd Extraordinary General Meeting of 2021 held on August 18, 2021,
which decided that the 70% of the equity in Shenzhen Yipingfang Network Technology Co., Ltd.
held by the Company will be publicly transferred at the state-owned property right exchange. The
Company's controlling shareholder, Overseas Chinese Town Holdings Company (OCT Group) (or
its controlling shareholder) might participate in the delisting of some of the equity in Shenzhen
Yipingfang Network Technology Co., Ltd.
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on Providing Guarantee Line for Joint Stock
24 March 2021
Company and Related-party Transaction http://www.cninfo.com.cn/new/i
Announcement on Providing Advertising Services to OCT Group and ndex
1 June 2021
Related-party Transaction
Announcement on Listing Transfer of Some Equity of Shenzhen
3 August 2021
E2info Network Technology Co., Ltd.
XII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
√ Applicable □ Not applicable
Note to leases
No significant leases in the Reporting Period.
The rent of Konka Development Building has received RMB29,164,184.58 in the Reporting Period.
The project bringing about gains or losses as over 10% of total profit in the Reporting Period
49
Konka Group Co., Ltd. Interim Report 2021
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Havin Guarant
Disclosure Actual Type Collat Counter Term
Line of Actual g ee for a
date of the guarant of eral guarant of
Obligor guarante occurren expire related
guarantee line ee guara (if ee (if guara
e ce date d or party or
announcement amount ntee any) any) ntee
not not
Yibin OCT
Joint-l
Sanjiang 2019/09/ Three
2018/09/19 40,000 14,000 iabilit No Not Not Yes
Properties Co., 29 years
y
Ltd.
Kunshan
Kangsheng Joint-l
2019/09/ Three
Investment 2018/09/19 24,500 24,500 iabilit No Not Not Yes
23 years
Development y
Co., Ltd.
Jiangxi Xinxin
Joint-l
Jian’an 2016/12/
10,000 10,000 iabilit No Not Not Not Not
Engineering 12
y
Co., Ltd.
Jiangxi
Zhongyi Joint-l
2016/12/
Decoration 10,000 10,000 iabilit No Not Not Not Not
12
Materials Co., y
Ltd.
Jiangxi Shanshi
Joint-l
Technological 2016/12/
10,000 10,000 iabilit No Not Not Not Not
Development 12
y
Co., Ltd.
Total approved line for such
Total actual amount of such guarantees in the
guarantees in the Reporting 40,000 0
Reporting Period (A2)
Period (A1)
Total approved line for such
Total actual balance of such guarantees at the end of
guarantees at the end of the 133,700 68,500
the Reporting Period (A4)
Reporting Period (A3)
Guarantees provided between the Company and subsidiaries
Disclosur Line of Actual Actual Colla Counter Term Having Guaran
Type of
Obligor e date of guarant occurrence guarant teral guarante of expired tee for
guarantee
the ee date ee (if e (if guarant or not a
50
Konka Group Co., Ltd. Interim Report 2021
guarantee amount any) any) ee related
line party or
announce not
ment
Joint-liabil One
2020/8/6 3,000 No Not Not Not
ity year
2017/7/3 Joint-liabil One
2020/10/19 3,000 No Not Not Not
0, ity year
Anhui
2018/5/2 Joint-liabil One
Tongchua 90,000 2021/1/21 5,000 No Not Not Not
2 and ity year
ng
2018/9/1 Joint-liabil One
2021/2/25 4,500 No Not Not Not
8 ity year
Joint-liabil One
2021/5/12 3,500 No Not Not Not
ity year
2017/3/3 Joint-liabil One
Hong 2020/12/28 20,000 No Not Not Not
0, and 355,00 ity year
Kong
2018/10/ 0 Joint-liabil One
Konka 2021/2/26 9,690 No Not Not Not
31 ity year
Boluo
2018/3/3 Joint-liabil Three
Konka 5,000 2020/8/19 2,480 No Not Not Not
0 ity years
Precision
Joint-liabil One
2020/7/24 10,000 No Not Not Not
ity year
Electroni Joint-liabil One
2020/8/14 8,000 No Not Not Not
cs 2018/9/1 350,00 ity year
Technolo 9 0 Joint-liabil One
2020/11/16 50,000 No Not Not Not
gy ity year
Joint-liabil One
2021/2/24 58,000 No Not Not Not
ity year
2018/9/1 Joint-liabil One
2021/2/8 5,000 No Not Not Not
Donggua 9, and ity year
90,000
n Konka 2021/3/2 Joint-liabil Ten
2021/6/23 80,000 No Not Not Not
3 ity years
Other One
Joint-liabil sharehol year
2020/6/5 24,000 No Not Not
ity der of and a
Econ half
Econ Joint-liabil Technol One
2018/9/1 120,00 2020/8/21 5,000 No Not Not
Technolo ity ogy year
9 0
gy Joint-liabil provides One
2020/9/22 5,000 No Not Not
ity a year
Joint-liabil counter One
2021/1/29 3,000 No Not Not
ity guarante year
2021/3/24 5,000 Joint-liabil No e for the One Not Not
51
Konka Group Co., Ltd. Interim Report 2021
ity Compan year
Joint-liabil y for One
2021/6/8 8,800 No Not Not
ity 49% of year
Joint-liabil the One
2021/6/18 5,000 No Not Not
ity guarante year
Joint-liabil e line One
2021/6/28 10,000 No Not Not
ity year
Joint-liabil Other Two
2020/11/12 5,800 No Not Not
ity sharehol years
Joint-liabil der of Three
2020/12/25 2,000 No Not Not
ity XingDa years
Joint-liabil HongYe Two
2021/5/31 1,250 No Not Not
ity provides years
a
XingDa 2018/9/1 counter
10,000
HongYe 9 guarante
e for the
Joint-liabil Compan Two
2021/5/31 750 No Not Not
ity y for years
49% of
the
guarante
e line
Two
Joint-liabil years
2019/3/18 11,961 No Not Not
ity and a
Other
half
sharehol
Joint-liabil Three
2020/11/6 10,000 No der of Not Not
ity years
Jiangxi
Joint-liabil One
2021/6/26 6,000 No Konka Not Not
ity year
provides
Joint-liabil Three
2019/6/26 5,500 No a Not Not
ity years
Jiangxi 2018/10/ counter
60,000 Joint-liabil Three
Konka 31 2019/10/30 6,500 No guarante Not Not
ity years
e for the
Joint-liabil Two
2020/3/20 990 No Compan Not Not
ity years
y for
Joint-liabil One
2020/8/4 3,000 No 49% of Not Not
ity year
the
Joint-liabil One
2020/9/29 10,000 No guarante Not Not
ity year
e line
Joint-liabil Two
2020/12/21 5,000 No Not Not
ity years
2020/12/30 1,000 Joint-liabil No Three Not Not
52
Konka Group Co., Ltd. Interim Report 2021
ity years
Joint-liabil Other Three
2020/5/19 5,000 No Not Not
ity sharehol years
Joint-liabil der of Two
2020/5/29 3,479 No Not Not
ity Xinfeng years
Joint-liabil Microcr Three
2020/12/8 2,100 No Not Not
ity ystalline years
Joint-liabil provides One
2020/12/28 7,200 No Not Not
Xinfeng ity a year
2019/3/3
Microcry 25,000 counter
0
stalline guarante
e for the
Compan
Joint-liabil One
2021/6/18 7,200 No y for Not Not
ity year
49% of
the
guarante
e line
Joint-liabil Other Three
2019/6/26 10,000 No Not Not
ity sharehol years
Joint-liabil der of Three
2019/12/20 5,000 No Not Not
ity Jiangxi years
Joint-liabil High Three
2020/1/8 5,000 No Not Not
ity Transpa years
Joint-liabil rent Two
2020/1/8 5,000 No Not Not
ity Substrat years
Jiangxi
Joint-liabil e Two
High 2020/3/20 990 No Not Not
2019/3/3 ity provides years
Transpare 45,000
0 Joint-liabil a Two
nt 2020/5/29 5,975 No Not Not
ity counter years
Substrate
guarante One
Joint-liabil e for the year
2020/6/24 7,000 No Not Not
ity Compan and a
y for half
49% of
Joint-liabil the Three
2020/7/14 6,000 No Not Not
ity guarante years
e line
2018/3/3
Sichuan 1, and Joint-liabil Three
65,000 2019/3/18 4,000 No No Not Not
Konka 2021/3/2 ity years
3
53
Konka Group Co., Ltd. Interim Report 2021
Other
sharehol
der of
Pengrun
Technol
ogy
provides
Pengrun a
2018/9/1 Joint-liabil One
Technolo 20,000 2020/8/25 5,000 No counter Not Not
9 ity year
gy guarante
e for the
Compan
y for
49% of
the
guarante
e line
Ningbo
Joint-liabil One
Kanghanr 2020/6/6 18,000 2020/7/27 6,000 No No Not Not
ity year
ui
Other
sharehol
der of
Yibin
Kangrun
provides
a
Yibin 2020/10/ Joint-liabil counter Four
10,000 2020/11/13 10,000 No Not Not
Kangrun 24 ity guarante years
e for the
Compan
y for
33% of
the
guarante
e line
Telecom
municatio
2017/3/3 Joint-liabil One
n 50,000 2020/8/26 7,500 No No Not Not
0 ity year
Technolo
gy
Joint-liabil Other One
Anhui 2017/3/3 110,00 2020/11/25 10,000 No Not Not
ity sharehol year
Konka 1 0
2020/12/24 26,800 Joint-liabil No der of One Not Not
54
Konka Group Co., Ltd. Interim Report 2021
ity Anhui year
Joint-liabil Konka One
2021/3/25 20,000 No Not Not
ity provides year
a
counter
guarante
e for the
Joint-liabil Compan One
2021/4/2 5,500 No Not Not
ity y for year
22% of
the
guarante
e line
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees 238,19
393,600
Period (B1) in the Reporting Period (B2) 0
Total approved line for such guarantees at the end of the Total actual balance of such guarantees 562,46
2,356,572
Reporting Period (B3) at the end of the Reporting Period (B4) 5
Guarantees provided between subsidiaries
Disclosur
Count Guaran
e date of
Actual er Term tee for
the Line of Actual Collater Having
guarant Type of guara of a
Obligor guarantee guarant occurrence al (if expired
ee guarantee ntee guarant related
line ee date any) or not
amount (if ee party or
announce
any) not
ment
Sichuan Seven Seven
14,000 2018/05/28 14,000 Not Not
Konka years years
Rushan
Yike
Water
Environm Ten Ten
29,000 2016/12/29 29,000 Not Not
ent years years
Managem
ent Co.,
Ltd.
Wuhan
Runyuan
Wastewat
2020/01/ Twenty Twenty
er 55,200 2020/01/20 55,200
21 years years
Treatmen
t Co.,
Ltd.
Subei 2020/03/ Fifteen Fifteen
77,600 2020/03/10 77,600 Not
Mongol 24 years years
55
Konka Group Co., Ltd. Interim Report 2021
Autonom
ous
County
Kangrun
Water
Co., Ltd.
Dayi Other
Kangrun 2020/05/ Fifteen share Fifteen
27,400 2020/04/29 27,400 Not
Water 13 years holde years
Co., Ltd. r
provi
Xi’an des a
Gaoling count
Kangrun er
Environm 2020/12/ Fifteen guara Fifteen
24,571 2020/12/17 24,571
ental 17 years ntee years
Engineeri for
ng Co., the
Ltd. Comp
any
Mengche
ng
Sevente
Kangrun 2021/2/2 123,40 Joint-liabil
2021/1/27 93,400 No No en Not Not
Anjian 6 0 ity
years
Water
Co., Ltd.
Xi’an
Gaoling
Kangrun Other
Environm 2021/2/2 20,000 Joint-liabil share Fifteen
2021/2/5 20,000 No Not Not
ental 6 ity holde years
Engineeri r
ng Co., provi
Ltd. des a
Tongchua count
n er
Kangrun guara
Honghui ntee
12,658 12,658 Joint-liabil Fourtee
Environm 2021/4/9 2021/3/25 No for Not Not
ity n years
ental the
Managem Comp
ent Co., any
Ltd.
Lushan 2021/5/3 95,000 2021/4/16 25,000 Joint-liabil No sixteen Not Not
56
Konka Group Co., Ltd. Interim Report 2021
Kangrun 1 ity years
Environm
ental
Managem
ent Co.,
Ltd.
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees 151,05
251,058
Period (C1) in the Reporting Period (C2) 8
Total approved line for such guarantees at the end of the Total actual balance of such guarantees 378,82
478,829
Reporting Period (C3) at the end of the Reporting Period (C4) 9
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period Total actual guarantee amount in the
644,658 389,248
(A1+B1+C1) Reporting Period (A2+B2+C2)
Total actual guarantee balance at the
Total approved guarantee line at the end of the Reporting 1,009,79
2,969,101 end of the Reporting Period
Period (A3+B3+C3) 4
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as %
122.00%
of the Company’s net assets
Of which:
Balance of guarantees provided for shareholders, actual controller and their related parties (D) 38,500
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 976,794
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 595,957
1,009,7
Total of the three amounts above (D+E+F)
94
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) N/A
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees:
None
3. Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB’0,000
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision for
impairment
Bank financial
Self-owned 61,990.62
products
Total 61,990.62
High-risk wealth management transactions with a significant single amount, or with low security,
low liquidity or no principal protection:
□ Applicable √ Not applicable
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
57
Konka Group Co., Ltd. Interim Report 2021
□ Applicable √ Not applicable
4. Major Routine Contracts
□ Applicable √ Not applicable
5. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
√ Applicable □ Not applicable
(I) Non-public offering of corporate bonds: Currently, the non-public offering of corporate bonds of
RMB2.3 billion was fully issued by three tranches on 9 January 2021, 21 May 2021, and 9 July
2021, respectively. The public offering of corporate bonds of RMB2.7 billion has been reviewed at
the Shareholders' General Meeting of Konka (hereinafter referred to as the "Company"), and
relevant matters are being promoted as planned.
(II) Initiation and establishment of funds: The total units of the Oriental-Konka Industry M&A Fund
worth RMB1,001,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500
million, accounting for 49.95% of the total units. By the date of this report, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB385,980,000. The fund invested in Jiangxi
Yahua Electronic Materials Co., Ltd., Genew Technologies Co., Ltd., etc. The total units of the
Kunshan-CITIC-Konka Emerging Industry Development Investment Fund worth
RMB1,006,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500 million,
accounting for 49.7% of the total units. By the date of this report, Shenzhen Konka Investment
Holding Co., Ltd. has contributed RMB43,810,000. The fund invested in UNIONTECH, Hercules
Microsystems (HME), etc. The total units of the Tongxiang Wuzhen Jiayu Digital Economic
Industry Fund worth RMB500 million. Shenzhen Konka Investment Holding Co., Ltd. contributed
RMB200 million, accounting for 40% of the total units. By the date of this report, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB120,000,000. The fund invested in Feidi
Technology (Shenzhen) Co., Ltd., CASICLOUD, etc. The Yibin Kanghui Electronic Information
Industry Equity Investment Fund, the Yancheng Kangyan Industry Investment Fund, and the
Chongqing Kangxin Equity Investment Fund have been filed with the Asset Management
Association of China (AMAC). The total units of Yancheng Kangyan Industry Investment Fun
worth RMB3,000 million. Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka
Capital Equity Investment Management Co., Ltd. contributed RMB1201,500,000, accounting for
40.05% of the total units. By the date of this report, Shenzhen Konka Investment Holding Co., Ltd.
and Shenzhen Konka Capital Equity Investment Management Co., Ltd. have contributed
RMB81,060,000. The fund invested in Anhui Sinonet & Xinlong Science & Technology Co., Ltd.
(III) Disclosure index of significant information
Link on
Announc
http://w
ement Date Title Page on newspaper
ww.cninf
No.
o.com.cn
Announcement on Issuance Results of Non-public Offering of Securities Times B48, Shanghai http://ww
2021-01 2021-1-9
Corporate Bonds (Tranche I) in 2021 Securities News 11 etc. w.cninfo.
58
Konka Group Co., Ltd. Interim Report 2021
Indicative Announcement on Preparation for Transfer of 17% Securities Times B15, Shanghai com.cn/n
2021-02 2021-1-14
of Equity in Yantai Kangyun Industry Development Co., Ltd. Securities News 22 etc. ew/index
2020 Result Forecast Securities Times B22, Shanghai
2021-03 2021-1-30
Securities News 67 etc.
Announcement on Progress of Security for Controlling Securities Times B22, Shanghai
2021-04 2021-1-30
Company Securities News 67 etc.
Announcement on Transfer of 17% of Equity in Yantai Securities Times B13, Shanghai
2021-05 2021-2-10
Kangyun Industry Development Co., Ltd. Securities News 72 etc.
Announcement on Signing Project Admission Agreement Securities Times B13, Shanghai
2021-06 2021-2-10
with Xi'an International Port District Management Committee Securities News 72 etc.
Announcement on Resignation of Chairman of Board of Securities Times B54, Shanghai
2021-07 2021-2-25
Supervisors Securities News 38 etc.
Notice on Convening 2021 First Extraordinary General Securities Times B11, Shanghai
2021-08 2021-2-27
Meeting Securities News 33 etc.
Announcement on Providing Financial Assistance to Yantai
Securities Times B11, Shanghai
2021-09 2021-2-27 Kangyun Industry Development Co., Ltd. at Shareholding
Securities News 33 etc.
Ratio
Announcement on Some Accounting Policy Changes Securities Times B11, Shanghai
2021-10 2021-2-27
Securities News 33 etc.
Announcement on Resolutions of 11th Meeting of the Ninth Securities Times B11, Shanghai
2021-11 2021-2-27
Board of Supervisors Securities News 33 etc.
Announcement on Resolutions of 39th Meeting of the Ninth Securities Times B11, Shanghai
2021-12 2021-2-27
Board of Directors Securities News 33 etc.
Announcement on Progress of Security for Controlling Securities Times B11, Shanghai
2021-13 2021-2-27
Company Securities News 33 etc.
Announcement on Transfer of 39% of Equity in Shanghai Securities Times B23, Shanghai
2021-14 2021-3-2
Konka Green Technology Co., Ltd. Securities News 49 etc.
Announcement on Resolutions of 2021 First Extraordinary Securities Times B40, Shanghai
2021-15 2021-3-16
General Meeting Securities News 81 etc.
Announcement on Resolutions of 12th Meeting of the Ninth Securities Times B40, Shanghai
2021-16 2021-3-16
Board of Supervisors Securities News 81 etc.
Announcement on Receipt of Government Grant by Wholly Securities Times B10, Shanghai
2021-17 2021-3-20
Owned Subsidiary Securities News 73 etc.
Announcement on Progress of Security for Wholly Owned Securities Times B87, Shanghai
2021-18 2021-3-20
Subsidiary Securities News 73 etc.
Announcement on Resolutions of 13th Meeting of the Ninth Securities Times B94, Shanghai
2021-19 2021-3-24
Board of Supervisors Securities News 105 etc.
59
Konka Group Co., Ltd. Interim Report 2021
Announcement on Expected Routine Connected Transactions Securities Times B93, Shanghai
2021-20 2021-3-24
in 2021 Securities News 105 etc.
Announcement on Provision of Reserves for Asset Securities Times B94, Shanghai
2021-21 2021-3-24
Impairment for 2020 Securities News 105 etc.
Securities Times B94, Shanghai
2021-22 2021-3-24 Announcement on Plan of Profit Distribution for 2020
Securities News 105 etc.
Announcement on Engagement of Annual Financial Securities Times B95, Shanghai
2021-23 2021-3-24
Statement Auditor and Internal Control Auditor for 2021 Securities News 105 etc.
Securities Times B94, Shanghai
2021-24 2021-3-24 Announcement on External Security
Securities News 105 etc.
Announcement on Providing Security Limit to and
Securities Times B95, Shanghai
2021-25 2021-3-24 Conducting Connected Transaction with Shareholding
Securities News 106 etc.
Company
Securities Times B93, Shanghai
2021-26 2021-3-24 Notice on Convening 2020 Shareholders' General Meeting
Securities News 106 etc.
Securities Times B93, Shanghai
2021-27 2021-3-24 Abstract of 2020 Annual Report
Securities News 105 etc.
2021-28 2021-3-24 2020 Annual Report
Announcement on Resolutions of 40th Meeting of the Ninth Securities Times B93, Shanghai
2021-29 2021-3-24
Board of Directors Securities News 106 etc.
Indicative Announcement on Preparation for Transfer of 51% Securities Times B123, Shanghai
2021-30 2021-3-27
of Equity in Shenzhen Kangxin Real Estate Co., Ltd. Securities News 56 etc.
Announcement on Progress of Security for Controlling Securities Times B123, Shanghai
2021-31 2021-3-27
Subsidiary Securities News 56 etc.
Securities Times B27, Shanghai
2021-32 2021-3-30 Announcement on Holding 2020 Online Result Release
Securities News 120 etc.
Announcement on Progress of Transfer of 17% of Equity in Securities Times B27, Shanghai
2021-33 2021-4-1
Yantai Kangyun Industry Development Co., Ltd. Securities News 72 etc.
Securities Times B120, Shanghai
2021-34 2021-4-10 Announcement on Security for Controlling Company
Securities News 137 etc.
Announcement on Progress of Transfer of 39% of Equity in Securities Times B068, Shanghai
2021-35 2021-4-14
Shanghai Konka Green Technology Co., Ltd. Securities News 54 etc.
Securities Times B26, Shanghai
2021-36 2021-4-15 2021Q1 Result Forecast
Securities News 136 etc.
Announcement on Resolutions of 2020 Shareholders' General Securities Times B100, Shanghai
2021-37 2021-4-20
Meeting Securities News 152 etc.
2021-38 2021-4-21 Announcement on Correction of 2020 Annual Report Securities Times B56, Shanghai
60
Konka Group Co., Ltd. Interim Report 2021
Securities News 118 etc.
Indicative Announcement on Preparation for Transfer of Securities Times B56, Shanghai
2021-39 2021-4-21
Some of Equity in ECON TECH Securities News 118 etc.
Announcement on Resolutions of 41st Meeting of the Ninth Securities Times B25, Shanghai
2021-40 2021-4-29
Board of Directors Securities News 152 etc.
Announcement on Transfer of 51% of Equity in Shenzhen Securities Times B25, Shanghai
2021-41 2021-4-29
Kangxin Real Estate Co., Ltd. Securities News 152 etc.
Securities Times B25, Shanghai
2021-42 2021-4-29 Main Body of 2021Q1 Report
Securities News 152 etc.
2021-43 2021-4-29 Full Text of 2021Q1 Report
Announcement on Signing Cooperation Framework
Securities Times B26, Shanghai
2021-44 2021-5-7 Agreement with Shenzhen Electronic Industries Association
Securities News 88 etc.
(SZEIA)
Announcement on Issuance Results of Non-public Offering of Securities Times B40, Shanghai
2021-45 2021-5-22
Corporate Bonds (Tranche II) in 2021 Securities News 104 etc.
Announcement on Completion of Private Equity Fund Filing
and Registration of Chongqing Kangxin Semiconductor Securities Times B18, Shanghai
2021-46 2021-5-25
Industry Fund whose Establishment is Participated in by the Securities News 72 etc.
Company
Securities Times B35, Shanghai
2021-47 2021-5-27 Announcement on Distribution of 2020 Annual Equity
Securities News 81 etc.
Securities Times B21, Shanghai
2021-48 2021-6-1 Announcement on Accumulative Lawsuits and Arbitrations
Securities News 49 etc.
Announcement on Resolutions of 42nd Meeting of the Ninth Securities Times B21, Shanghai
2021-49 2021-6-1
Board of Directors Securities News 49 etc.
Announcement on Providing Advertising Services to and
Securities Times B21, Shanghai
2021-50 2021-6-1 Conducting Connected Transaction with Overseas Chinese
Securities News 49 etc.
Town Holdings Company (OCT Group)
Securities Times B21, Shanghai
2021-51 2021-6-1 Announcement on Security for Controlling Company
Securities News 49 etc.
Announcement on Progress of Transfer of 51% of Equity in Securities Times B21, Shanghai
2021-52 2021-6-18
Shenzhen Kangxin Real Estate Co., Ltd. Securities News 96 etc.
Announcement on Reply to Inquiry Letter on 2020 Annual Securities Times B18, Shanghai
2021-53 2021-6-19
Report from Shenzhen Stock Exchange Securities News 38 etc.
XIV Significant Events of Subsidiaries
□ Applicable √ Not applicable
61
Konka Group Co., Ltd. Interim Report 2021
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Increase/decrease in the Reporting Period
Before After
(+/-)
Sha
res
as
divi
Shares as
den
dividend
Percent d Percent
New converted Oth Subt
Shares age con Shares age
issues from er otal
(%) vert (%)
capital
ed
reserves
fro
m
prof
it
1. Restricted shares 19,500 0.00% 19,500 0.00%
1.3 Shares held by
other domestic 19,500 0.00% 19,500 0.00%
investors
Shares held by
domestic legal person
Shares held by
domestic natural 19,500 0.00% 19,500 0.00%
persons
100.00 2,407,925,90 100.00
2,407,925,908
2. Unrestricted shares % 8 %
2.1 RMB-denominated 1,596,574,30 66.31
1,596,574,300 66.31%
ordinary shares 0 %
2.2 Domestically listed 33.69
811,351,608 33.69% 811,351,608
foreign shares %
100.00 2,407,945,40 100.00
3. Total shares 2,407,945,408
% 8 %
Reasons for the share changes:
□ Applicable √ Not applicable
Approval of the share changes:
62
Konka Group Co., Ltd. Interim Report 2021
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Effects of the share changes on the basic and diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the prior year
and the prior accounting period, respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to
be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II Issuance and Listing of Securities
□ Applicable √ Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
Number of ordinary Number of preferred shareholders with resumed
106,460
shareholders voting rights (if any) (see note 8)
5% or greater ordinary shareholders or top 10 ordinary shareholders
Shares in
pledge,
marked or
Share Total
Increase/dec Restricted frozen
Nature of holdin ordinary Unrestricte
rease in the ordinary S
Name of shareholder shareholde g shares held d ordinary
Reporting shares h
r percen at the shares held
Period held a
tage period-end Status
r
e
s
OVERSEAS CHINESE State-owne
21.75 523,746,93
TOWN ENTERPRISES CO., d legal 523,746,932 0 0
% 2
LTD person
CITIC SECURITIES Foreign
180,001,11
BROKERAGE (HONG legal 7.48% 180,001,110 -2,099,092 0
0
KONG) CO., LTD. person
WANG JINGFENG Domestic 4.61% 111,000,000 52,672,242 0 111,000,00
63
Konka Group Co., Ltd. Interim Report 2021
natural 0
person
Foreign
GUOYUAN SECURITIES
legal 2.40% 57,850,325 -250,000 0 57,850,325
BROKER (HK) CO., LTD.
person
Foreign
HOLY TIME GROUP
legal 2.38% 57,289,100 0 0 57,289,100
LIMITED
person
Foreign
GAOLING FUND,L.P. legal 2.19% 52,801,250 0 0 52,801,250
person
Domestic
LI HANFA natural 1.07% 25,680,000 25,680,000 0 25,680,000
person
Foreign
NAM NGAI natural 0.94% 22,567,540 0 0 22,567,540
person
CHINA MERCHANTS State-owne
SECURITIES (HK) d legal 0.80% 19,358,220 -132,100 0 19,358,220
LIMITED person
Domestic
ZHENG LIN natural 0.52% 12,500,000 12,500,000 0 12,500,000
person
Strategic investor or general legal person becoming a top-10 ordinary shareholder due
N/A
to rights issue (if any) (see note 3)
Happy Bloom Investment Limited, a wholly-owned subsidiary of the
Company’s first majority shareholder Overseas Chinese Town
Enterprises Co. (“OCT Group” for short), holds 180,001,110 and
18,360,000 ordinary shares in the Company respectively through CITIC
Related or acting-in-concert parties among the
Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants
shareholders above
Securities (HK) Limited. Happy Bloom 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.
Explain if any of the shareholders above was involved
in entrusting/being entrusted with voting rights or N/A
waiving voting rights
Special account for share repurchases (if any) among
None
the top 10 shareholders (see note 11)
Top 10 unrestricted ordinary shareholders
Unrestricted ordinary shares held at the Shares by type
Name of shareholder
period-end Type Shares
OVERSEAS CHINESE TOWN RMB-denominated
523,746,932 523,746,932
ENTERPRISES CO., LTD ordinary stock
64
Konka Group Co., Ltd. Interim Report 2021
CITIC SECURITIES BROKERAGE Domestically listed
180,001,110 180,001,110
(HONG KONG) CO., LTD. foreign stock
RMB-denominated
WANG JINGFENG 111,000,000 111,000,000
ordinary stock
GUOYUAN SECURITIES BROKER Domestically listed
57,850,325 57,850,325
(HK) CO., LTD. foreign stock
Domestically listed
HOLY TIME GROUP LIMITED 57,289,100 57,289,100
foreign stock
Domestically listed
GAOLING FUND,L.P. 52,801,250 52,801,250
foreign stock
RMB-denominated
LI HANFA 25,680,000 25,680,000
ordinary stock
Domestically listed
NAM NGAI 22,567,540 22,567,540
foreign stock
CHINA MERCHANTS SECURITIES Domestically listed
19,358,220 19,358,220
(HK) LIMITED foreign stock
RMB-denominated
ZHENG LIN 12,500,000 12,500,000
ordinary stock
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
Related or acting-in-concert parties majority shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for
among top 10 unrestricted ordinary short), holds 180,001,110 and 18,360,000 ordinary shares in the Company respectively
shareholders, as well as between top 10 through CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants
unrestricted ordinary shareholders and Securities (HK) Limited. Happy Bloom Investment Limited and Overseas Chinese
top 10 shareholders 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.
Top 10 ordinary shareholders involved
Li Hanfa holds 25,680,000 A-shares in the Company through his securities account for
in securities margin trading (if any)
customer credit trading guarantee in Western Securities Co., Ltd.
(see note 4)
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.
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.
IV Change in Shareholdings of Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
No changes occurred to the shareholdings of the directors, supervisors and senior management in
the Reporting Period. See the 2020 Annual Report for more details.
V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
65
Konka Group Co., Ltd. Interim Report 2021
No such cases in the Reporting Period.
Change of the de facto controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
66
Konka Group Co., Ltd. Interim Report 2021
Part VIII Preference Shares
□ Applicable √ Not applicable
No Preference shares in the Reporting Period.
67
Konka Group Co., Ltd. Interim Report 2021
Part IX Bonds
√ Applicable □ Not applicable
I Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.
II Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Bonds
Inter Way of
Release Value Maturity balance Trade
Name Abbr. Code est redemptio
date date date (RMB’ place
rate n
0,000)
Interests
shall be
paid every
Privately placed Shenz
year and
corporate bonds in 2019 14 14 14 hen
19 Konka 11441 5.00 the
of Konka Group Co., January January January - Stock
01 8 % principals
Ltd (Tranche I) (Variety 2019 2019 2022 Excha
shall be
I) nge
repaid
when
expired.
Interests
shall be
paid every
Privately placed Shenz
year and
corporate bonds in 2019 14 14 14 hen
19 Konka 11442 5.00 the
of Konka Group Co., January January January 150,000 Stock
02 3 % principals
Ltd (Tranche I) (Variety 2019 2019 2022 Excha
shall be
II) nge
repaid
when
expired.
Interests
Privately placed shall be Shenz
corporate bonds in 2019 paid every hen
19 Konka 11448 3 June 3 June 3 June 4.50
of Konka Group Co., - year and Stock
03 8 2019 2019 2022 %
Ltd (Tranche II) the Excha
(Variety I) principals nge
shall be
68
Konka Group Co., Ltd. Interim Report 2021
repaid
when
expired.
Interests
shall be
paid every
Privately placed Shenz
year and
corporate bonds in 2019 hen
19 Konka 11448 3 June 3 June 3 June 4.70 the
of Konka Group Co., 50,000 Stock
04 9 2019 2019 2022 % principals
Ltd (Tranche II) Excha
shall be
(Variety II) nge
repaid
when
expired.
Interests
shall be
paid every
Privately placed Shenz
year and
corporate bonds in 2019 hen
19 Konka 11452 22 July 22 July 22 July 4.53 the
of Konka Group Co., - Stock
05 3 2019 2019 2022 % principals
Ltd (Tranche III) Excha
shall be
(Variety I) nge
repaid
when
expired.
Interests
shall be
paid every
Privately placed Shenz
year and
corporate bonds in 2019 hen
19 Konka 11452 22 July 22 July 22 July 4.70 the
of Konka Group Co., 70,000 Stock
06 4 2019 2019 2022 % principals
Ltd (Tranche III) Excha
shall be
(Variety II) nge
repaid
when
expired.
Interests
shall be
paid every
Shenz
Privately placed year and
8 8 hen
corporate bonds in 2021 21 Konka 11489 8 January 4.46 the
January January 100,000 Stock
of Konka Group Co., 01 4 2021 % principals
2021 2024 Excha
Ltd (Tranche I) shall be
nge
repaid
when
expired.
Privately placed 21 Konka 13300 21 May 21 May 21 May 50,000 4.00 Interests Shenz
69
Konka Group Co., Ltd. Interim Report 2021
corporate bonds in 2021 02 3 2021 2021 2024 % shall be hen
of Konka Group Co., paid every Stock
Ltd (Tranche II) year and Excha
the nge
principals
shall be
repaid
when
expired.
Interests
shall be
paid every
Shenz
Privately placed year and
hen
corporate bonds in 2021 21 Konka 13304 9 July 9 July 9 July 3.95 the
80,000 Stock
of Konka Group Co., 03 0 2021 2021 2024 % principals
Excha
Ltd (Tranche III) shall be
nge
repaid
when
expired.
“19 Konka 01”, ” 19 Konka 02”, “19 Konka 03”, “19 Konka 04”, “19 Konka 05”, “19
Konka 06” were placed privately to qualified institutional investors meeting the
requirements of management method for investors eligibility in bonds market of
Appropriate arrangement of the
Shenzhen Stock Exchange, and “21 Konka 01”, “21 Konka 02”, “21 Konka 03” were
investors (if any)
placed privately to professional investors meeting the requirements of management
method for investors eligibility of Shenzhen Stock Exchange, which not exceeding 200
persons .
Applicable trade mechanism Comprehensive agreement trade platform of Shenzhen Stock Exchange
Risk of delisting (if any) and
No
countermeasures
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the
Investor Protection Clause
√ Applicable □ Not applicable
"19 Konka 01", "19 Konka 03", and "19 Konka 05" are attached with the issuer's option of adjusting
coupon rate: and the investor's put option. In the Reporting Period, the execution of the above
clauses are as follows:
(I) On 14 January 2021, for "19 Konka 01", the issuer's option of adjusting coupon rate and
investor's put option were exercised. Specifically: The issuer adjusted the coupon rate for the last
year within the duration to 2.80%, the sell-back quantity to 10 million shares, and the sell-back
amount to RMB1 billion. The sell-back principal and the interest of the part to which the put option
70
Konka Group Co., Ltd. Interim Report 2021
is exercised in the current period have been transferred in full to the account specified by China
Securities Depository and Clearing Corporation Limited (CSDC). "19 Konka 01" has been sold
back in full and de-listed from the stock exchange.
(II) On 3 June 2021, for "19 Konka 03", the issuer's option of adjusting coupon rate and the
investor's put option were exercised. Specifically: The issuer adjusted the coupon rate for the last
year within the duration to 2.80%, the sell-back quantity to 5 million shares, and the sell-back
amount to RMB500 million. The sell-back principal and the interest of the part to which the put
option is exercised in the current period have been transferred in full to the account specified by
CSDC. "19 Konka 03" has been sold back in full and de-listed from the stock exchange.
(III) On 22 July 2021, for "19 Konka 05", the issuer's option of adjusting coupon rate and investor's
put option were exercised. Specifically: The issuer adjusted the coupon rate for the last year within
the duration to 2.80%, the sell-back quantity to 8 million shares, and the sell-back amount to
RMB800 million. The sell-back principal and the interest of the part to which the put option is
exercised in the current period have been transferred in full to the account specified by CSDC. "19
Konka 05" has been sold back in full and de-listed from the stock exchange.
3. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
4. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee
Measures as well as Influence on Equity of Bond Investors during the Reporting Period
□ Applicable √ Not applicable
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000
Item 30 June 2021 30 June 2020 Increase/decrease
Current ratio 89.14% 93.18% -4.04%
Asset-liability ratio 79.49% 78.51% 0.98%
Quick ratio 71.44% 76.42% -4.98%
H1 2021 H1 2020 Increase/decrease
Net profit after deducting -71,012.46 -65,001.05 -9.25%
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Konka Group Co., Ltd. Interim Report 2021
non-recurring profit or loss
Debt/EBITDA ratio 3.19% 3.28% -0.09%
Times interest earned 1.15 1.22 -5.74%
Times interest earned of cash -1.50 -0.95 -57.26%
Times interest earned of
1.72 1.73 -0.58%
EBITDA
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
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Konka Group Co., Ltd. Interim Report 2021
Part X Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes √ No
The interim financial statements of the Company have not been audited by an independent auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
30 June 2021
Unit: RMB
Item 30 June 2021 31 December 2020
Current assets:
Monetary assets 5,808,945,725.97 5,431,530,180.90
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 618,249,541.66
Derivative financial assets
Notes receivable 1,517,173,391.11 2,358,180,193.96
Accounts receivable 4,549,591,026.59 3,900,897,623.59
Accounts receivable financing 111,375,140.87 84,057,197.44
Prepayments 1,245,612,713.12 1,183,270,543.41
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 2,002,670,932.02 2,145,736,640.60
Including: Interest receivable 54,484,552.15 45,109,425.85
Dividends receivable 547,848.62 4,947,848.62
Financial assets purchased under
resale agreements
Inventories 5,159,261,206.91 4,521,300,677.41
Contract assets 3,278,002,380.34 2,870,006,710.39
73
Konka Group Co., Ltd. Interim Report 2021
Assets held for sale
Current portion of non-current
69,003,761.31 112,310,158.82
assets
Other current assets 2,245,900,952.01 1,913,146,483.39
Total current assets 25,987,537,230.25 25,138,685,951.57
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables 390,636,999.59 399,497,204.03
Long-term equity investments 4,465,804,131.62 4,375,833,584.65
Investments in other equity
25,343,293.16 25,343,293.16
instruments
Other non-current financial assets 2,041,635,385.92 1,878,154,796.76
Investment property 517,599,145.62 538,585,668.29
Fixed assets 3,355,378,019.70 3,178,642,017.84
Construction in progress 10,099,450,528.06 9,236,643,931.68
Productive living assets
Oil and gas assets
Right-of-use assets 91,722,023.03
Intangible assets 1,169,991,792.70 1,189,191,001.51
Development costs 57,745.03
Goodwill 675,795,873.17 675,795,873.17
Long-term prepaid expense 212,945,657.99 153,198,562.82
Deferred income tax assets 1,368,257,105.54 1,265,916,437.39
Other non-current assets 1,246,223,596.72 1,820,779,170.74
Total non-current assets 25,660,841,297.85 24,737,581,542.04
Total assets 51,648,378,528.10 49,876,267,493.61
Current liabilities:
Short-term borrowings 10,660,328,520.00 10,990,550,475.78
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial
liabilities
74
Konka Group Co., Ltd. Interim Report 2021
Derivative financial liabilities
Notes payable 1,084,027,559.56 1,335,987,026.21
Accounts payable 9,842,554,742.32 9,632,366,325.76
Advances from customers
Contract liabilities 809,414,528.15 1,217,367,735.94
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 231,185,917.73 476,616,244.45
Taxes payable 339,046,643.99 508,214,059.16
Other payables 1,646,751,352.19 1,999,430,899.69
Including: Interest payable 214,023,683.45 220,837,380.17
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
4,327,184,538.69 376,896,566.29
liabilities
Other current liabilities 212,650,019.72 441,774,317.23
Total current liabilities 29,153,143,822.35 26,979,203,650.51
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7,881,025,148.48 5,964,748,997.54
Bonds payable 2,992,708,333.32 4,993,212,788.32
Including: Preferred shares
Perpetual bonds
Lease liabilities 68,784,148.21
Long-term payables 471,934,338.20 481,409,849.96
Long-term employee benefits 5,178,477.38 5,248,309.14
75
Konka Group Co., Ltd. Interim Report 2021
payable
Provisions 106,675,570.03 102,353,567.91
Deferred income 221,156,075.12 446,900,524.64
Deferred income tax liabilities 70,203,372.45 75,819,231.93
Other non-current liabilities 83,705,786.99 106,475,449.02
Total non-current liabilities 11,901,371,250.18 12,176,168,718.46
Total liabilities 41,054,515,072.53 39,155,372,368.97
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 234,215,703.91 230,185,310.09
Less: Treasury stock
Other comprehensive income -17,166,086.08 -16,583,042.42
Specific reserve
Surplus reserves 1,211,721,109.67 1,211,721,109.67
General reserve
Retained earnings 4,440,026,770.40 4,595,371,391.63
Total equity attributable to owners of
8,276,742,905.90 8,428,640,176.97
the Company as the parent
Non-controlling interests 2,317,120,549.67 2,292,254,947.67
Total owners’ equity 10,593,863,455.57 10,720,895,124.64
Total liabilities and owners’ equity 51,648,378,528.10 49,876,267,493.61
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Guo Zhihua
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2021 31 December 2020
Current assets:
Monetary assets 3,267,327,229.79 3,481,445,560.17
Held-for-trading financial assets 298,497,458.33
Derivative financial assets
Notes receivable 791,122,441.73 879,589,355.91
Accounts receivable 7,116,649,107.58 4,473,251,691.85
76
Konka Group Co., Ltd. Interim Report 2021
Accounts receivable financing 5,659,400.00
Prepayments 857,806,880.32 1,021,218,285.46
Other receivables 11,189,761,973.66 10,034,869,353.07
Including: Interest receivable 53,913,996.27 41,138,869.97
Dividends receivable 746,582,755.50 749,431,635.50
Inventories 283,635,455.44 202,406,456.36
Contract assets
Assets held for sale
Current portion of non-current
assets
Other current assets 1,194,303,609.77 1,020,031,186.39
Total current assets 24,700,606,698.29 21,416,968,747.54
Non-current assets:
Investments in debt obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity investments 9,030,712,765.79 8,806,166,599.56
Investments in other equity
17,940,215.36 17,940,215.36
instruments
Other non-current financial assets 203,000,000.00 250,230,000.00
Investment property 399,312,419.35 406,237,236.91
Fixed assets 468,176,972.04 431,762,044.14
Construction in progress 164,703,458.80 132,464,938.18
Productive living assets
Oil and gas assets
Right-of-use assets 5,057,474.73
Intangible assets 56,983,456.40 59,506,272.63
Development costs
Goodwill
Long-term prepaid expense 14,736,111.41 16,532,521.69
Deferred income tax assets 1,037,414,801.42 980,095,292.53
Other non-current assets 11,225,866.61 10,867,888.84
Total non-current assets 11,409,263,541.91 11,111,803,009.84
Total assets 36,109,870,240.20 32,528,771,757.38
77
Konka Group Co., Ltd. Interim Report 2021
Current liabilities:
Short-term borrowings 4,949,529,416.45 5,052,990,048.93
Held-for-trading financial
liabilities
Derivative financial liabilities
Notes payable 853,626,661.37 1,344,958,738.50
Accounts payable 7,374,735,672.62 6,811,467,585.39
Advances from customers
Contract liabilities 1,005,663,444.32 723,022,740.95
Employee benefits payable 58,059,951.87 147,391,317.06
Taxes payable 6,030,867.92 4,094,133.23
Other payables 5,693,492,635.27 4,275,347,622.57
Including: Interest payable 207,030,892.91 215,828,625.04
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
4,002,494,735.07 5,867,425.49
liabilities
Other current liabilities 1,271,479.50 6,108,675.36
Total current liabilities 23,944,904,864.39 18,371,248,287.48
Non-current liabilities:
Long-term borrowings 3,432,907,132.95 2,930,034,612.32
Bonds payable 2,992,708,333.32 4,993,212,788.32
Including: Preferred shares
Perpetual bonds
Lease liabilities 2,851,542.40
Long-term payables 17,633,249.67
Long-term employee benefits
payable
Provisions 912,275.65 832,465.72
Deferred income 40,832,761.33 61,530,557.55
Deferred income tax liabilities 2,334,364.58
Other non-current liabilities 10,433,597.66 54,162,098.05
Total non-current liabilities 6,480,645,643.31 8,059,740,136.21
Total liabilities 30,425,550,507.70 26,430,988,423.69
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Konka Group Co., Ltd. Interim Report 2021
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 109,898,727.37 112,570,352.72
Less: Treasury stock
Other comprehensive income -1,500,000.00 -2,682,217.31
Specific reserve
Surplus reserves 1,227,564,785.19 1,227,564,785.19
Retained earnings 1,940,410,811.94 2,352,385,005.09
Total owners’ equity 5,684,319,732.50 6,097,783,333.69
Total liabilities and owners’ equity 36,109,870,240.20 32,528,771,757.38
3. Consolidated Income Statement
Unit: RMB
Item H1 2021 H1 2020
1. Revenue 21,810,161,873.08 17,524,183,896.74
Including: Operating revenue 21,810,161,873.08 17,524,183,896.74
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 22,632,427,029.23 18,353,408,488.70
Including: Cost of sales 20,817,175,713.78 16,268,993,432.88
Interest expense
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 44,456,361.94 29,184,440.36
Selling expense 667,662,036.47 969,224,381.98
Administrative expense 359,053,667.07 440,915,780.44
R&D expense 284,663,467.26 258,049,586.29
79
Konka Group Co., Ltd. Interim Report 2021
Finance costs 459,415,782.71 387,040,866.75
Including: Interest expense 488,330,464.76 532,953,584.28
Interest income 78,303,181.42 124,261,830.72
Add: Other income 720,696,356.02 318,094,852.34
Return on investment (“-” for loss) 322,244,312.89 598,693,576.59
Including: Share of profit or loss of joint ventures and
19,335,816.88 44,717,625.76
associates
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 40,362,513.73
Credit impairment loss (“-” for loss) -71,392,178.06 -39,887,507.18
Asset impairment loss (“-” for loss) -29,538,732.82 -1,985,659.95
Asset disposal income (“-” for loss) 88,668.35 98,454,282.86
3. Operating profit (“-” for loss) 160,195,783.96 144,144,952.70
Add: Non-operating income 21,618,277.79 8,661,773.48
Less: Non-operating expense 6,793,873.14 7,136,875.35
4. Profit before tax (“-” for loss) 175,020,188.61 145,669,850.83
Less: Income tax expense 84,263,268.37 73,425,522.47
5. Net profit (“-” for net loss) 90,756,920.24 72,244,328.36
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
90,756,920.24 72,244,328.36
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 as
85,449,919.57 94,701,792.63
the parent
5.2.1 Net profit attributable to non-controlling interests 5,307,000.67 -22,457,464.27
6. Other comprehensive income, net of tax -1,547,270.99 1,158,124.63
Attributable to owners of the Company as the parent -583,043.66 -316,704.47
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined
benefit schemes
6.1.2 Other comprehensive income that will not be
80
Konka Group Co., Ltd. Interim Report 2021
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 arising from changes in own
credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -583,043.66 -316,704.47
6.2.1 Other comprehensive income that will be reclassified
1,486,086.18
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 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in other
debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
-2,069,129.84 -316,704.47
currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -964,227.33 1,474,829.10
7. Total comprehensive income 89,209,649.25 73,402,452.99
Attributable to owners of the Company as the parent 84,866,875.91 94,385,088.16
Attributable to non-controlling interests 4,342,773.34 -20,982,635.17
8. Earnings per share
8.1 Basic earnings per share 0.0355 0.0393
8.2 Diluted earnings per share 0.0355 0.0393
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Guo Zhihua
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2021 H1 2020
1. Operating revenue 1,201,381,406.70 3,375,446,030.89
Less: Cost of sales 1,079,261,558.34 2,951,099,830.85
Taxes and surcharges 2,722,585.37 2,456,004.49
Selling expense 153,803,101.46 346,758,543.10
Administrative expense 129,288,020.36 159,850,052.74
81
Konka Group Co., Ltd. Interim Report 2021
R&D expense 21,919,059.86 25,536,247.49
Finance costs 185,312,072.03 174,356,605.73
Including: Interest expense 395,636,089.83 430,353,727.41
Interest income 249,552,400.35 242,970,045.01
Add: Other income 31,506,992.96 60,280,939.33
Return on investment (“-” for loss) 196,794,318.43 508,865,061.70
Including: Share of profit or loss of joint ventures and
6,396,453.37 -699,839.38
associates
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 1,656,645.84
Credit impairment loss (“-” for loss) -86,149,702.67 -10,198,271.78
Asset impairment loss (“-” for loss) -2,818,595.77 5,726,253.37
Asset disposal income (“-” for loss) 98,600,000.00
2. Operating profit (“-” for loss) -229,935,331.93 378,662,729.11
Add: Non-operating income 4,699,664.41 315,565.50
Less: Non-operating expense 5,616,310.83 225,566.38
3. Profit before tax (“-” for loss) -230,851,978.35 378,752,728.23
Less: Income tax expense -59,671,308.58 84,301,541.05
4. Net profit (“-” for net loss) -171,180,669.77 294,451,187.18
4.1 Net profit from continuing operations (“-” for net
-171,180,669.77 294,451,187.18
loss)
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income, net of tax 1,182,217.31
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit 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 arising from changes in own
credit risk
5.1.5 Other
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Konka Group Co., Ltd. Interim Report 2021
5.2 Items that will be reclassified to profit or loss 1,182,217.31
5.2.1 Other comprehensive income that will be reclassified
1,486,086.18
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 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Credit impairment allowance for investments in other
debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of foreign
-303,868.87
currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income -169,998,452.46 294,451,187.18
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2021 H1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
20,963,019,142.28 17,398,919,184.79
services
Net increase in customer deposits and interbank deposits
Net increase in borrowings from the 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
Tax rebates 259,574,846.93 108,772,128.38
Cash generated from other operating activities 984,633,539.35 2,067,915,221.82
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Konka Group Co., Ltd. Interim Report 2021
Subtotal of cash generated from operating activities 22,207,227,528.56 19,575,606,534.99
Payments for commodities and services 20,801,856,591.59 17,115,676,821.64
Net increase in loans and advances to customers
Net increase in deposits in the 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 1,040,180,023.02 917,713,468.04
Taxes paid 571,610,951.43 628,428,831.21
Cash used in other operating activities 1,078,341,184.55 1,990,154,341.58
Subtotal of cash used in operating activities 23,491,988,750.59 20,651,973,462.47
Net cash generated from/used in operating activities -1,284,761,222.03 -1,076,366,927.48
2. Cash flows from investing activities:
Proceeds from disinvestment 242,490,592.58 387,119,277.60
Return on investment 79,850,437.97 80,623,751.66
Net proceeds from the disposal of fixed assets, intangible
233,374,028.57 40,444,106.56
assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and other
133,143,680.12 3,287,293.86
business units
Cash generated from other investing activities 726,997,513.51 1,208,757,541.14
Subtotal of cash generated from investing activities 1,415,856,252.75 1,720,231,970.82
Payments for the acquisition of fixed assets, intangible
2,434,111,266.54 1,701,324,660.79
assets and other long-lived assets
Payments for investments 334,832,168.49 8,670,001.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
96,500,000.00
other business units
Cash used in other investing activities 335,799,856.00 152,930,416.99
Subtotal of cash used in investing activities 3,201,243,291.03 1,862,925,078.78
Net cash generated from/used in investing activities -1,785,387,038.28 -142,693,107.96
3. Cash flows from financing activities:
Capital contributions received 82,672,396.60 94,836,439.00
Including: Capital contributions by non-controlling
82,672,396.60 94,836,439.00
interests to subsidiaries
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Konka Group Co., Ltd. Interim Report 2021
Borrowings raised 11,408,374,380.36 10,423,573,485.62
Cash generated from other financing activities 595,358,784.49 945,876,029.73
Subtotal of cash generated from financing activities 12,086,405,561.45 11,464,285,954.35
Repayment of borrowings 7,054,124,522.30 8,790,985,658.27
Interest and dividends paid 612,510,498.19 383,175,132.72
Including: Dividends paid by subsidiaries to
7,497,000.00 10,513,500.00
non-controlling interests
Cash used in other financing activities 480,205,100.51 1,033,904,254.73
Subtotal of cash used in financing activities 8,146,840,121.00 10,208,065,045.72
Net cash generated from/used in financing activities 3,939,565,440.45 1,256,220,908.63
4. Effect of foreign exchange rates changes on cash and
-7,488,067.32 7,043,028.89
cash equivalents
5. Net increase in cash and cash equivalents 861,929,112.82 44,203,902.08
Add: Cash and cash equivalents, beginning of the period 4,298,056,113.24 4,493,701,917.22
6. Cash and cash equivalents, end of the period 5,159,985,226.06 4,537,905,819.30
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2021 H1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1,579,711,912.72 3,385,079,007.56
services
Tax rebates 125,466,130.99 35,643,807.10
Cash generated from other operating activities 253,268,585.04 6,304,828,904.25
Subtotal of cash generated from operating activities 1,958,446,628.75 9,725,551,718.91
Payments for commodities and services 2,203,917,150.41 2,037,612,946.86
Cash paid to and for employees 186,615,478.74 193,201,951.98
Taxes paid 5,362,665.96 7,317,308.11
Cash used in other operating activities 315,831,641.28 7,103,806,174.57
Subtotal of cash used in operating activities 2,711,726,936.39 9,341,938,381.52
Net cash generated from/used in operating activities -753,280,307.64 383,613,337.39
2. Cash flows from investing activities:
Proceeds from disinvestment 336,545,500.00 395,943,265.00
Return on investment 7,738,365.75 15,939,575.07
Net proceeds from the disposal of fixed assets, intangible
208,313.77 53,456.56
assets and other long-lived assets
85
Konka Group Co., Ltd. Interim Report 2021
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities 3,061,287,812.44 1,129,057,041.14
Subtotal of cash generated from investing activities 3,405,779,991.96 1,540,993,337.77
Payments for the acquisition of fixed assets, intangible
100,219,361.16 44,012,965.74
assets and other long-lived assets
Payments for investments 416,340,000.00 966,864,001.00
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 3,653,620,787.61 112,930,416.99
Subtotal of cash used in investing activities 4,170,180,148.77 1,123,807,383.73
Net cash generated from/used in investing activities -764,400,156.81 417,185,954.04
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 7,831,733,994.04 7,094,864,642.27
Cash generated from other financing activities 4,872,687,703.97 132,563,907.20
Subtotal of cash generated from financing activities 12,704,421,698.01 7,227,428,549.47
Repayment of borrowings 5,460,556,762.28 6,842,198,610.76
Interest and dividends paid 555,580,595.63 322,326,562.77
Cash used in other financing activities 5,048,804,238.24 381,866,448.33
Subtotal of cash used in financing activities 11,064,941,596.15 7,546,391,621.86
Net cash generated from/used in financing activities 1,639,480,101.86 -318,963,072.39
4. Effect of foreign exchange rates changes on cash and
-524,306.83 3,386,774.26
cash equivalents
5. Net increase in cash and cash equivalents 121,275,330.58 485,222,993.30
Add: Cash and cash equivalents, beginning of the period 2,910,762,592.99 1,337,342,186.92
6. Cash and cash equivalents, end of the period 3,032,037,923.57 1,822,565,180.22
86
Konka Group Co., Ltd. Interim Report 2021
7. Consolidated Statements of Changes in Owners’ Equity
H1 2021
Unit: RMB
H1 2021
Equity attributable to owners of the Company as the parent
Other equity
instruments
S
P
p
r
e
e
P c
f
er Les i
e
p s: f
Item r Gen
Tre Other i O Non-controlling
et Total owners’ equity
r Capital eral Retained
Share capital asu comprehensive c Surplus reserves th Subtotal interests
u Ot
e reserves rese earnings
al he ry income r er
d rve
b r sto e
o ck s
s
n e
h
d r
a
s v
r
e
e
s
1. Balance as at the end of the
2,407,945,408.00 230,185,310.09 -16,583,042.42 1,211,721,109.67 4,595,371,391.63 8,428,640,176.97 2,292,254,947.67 10,720,895,124.64
period of prior year
Add: Adjustment for change in
accounting policy
87
Konka Group Co., Ltd. Interim Report 2021
Adjustment for correction of
previous error
Adjustment for business
combination under common
control
Other adjustments
2. Balance as at the beginning of
2,407,945,408.00 230,185,310.09 -16,583,042.42 1,211,721,109.67 4,595,371,391.63 8,428,640,176.97 2,292,254,947.67 10,720,895,124.64
the Reporting Period
3. Increase/ decrease in the period
4,030,393.82 -583,043.66 -155,344,621.23 -151,897,271.07 24,865,602.00 -127,031,669.07
(“-” for decrease)
3.1 Total comprehensive
-583,043.66 85,449,919.57 84,866,875.91 4,342,773.34 89,209,649.25
income
3.2 Capital increased and
4,030,393.82 4,030,393.82 20,522,828.66 24,553,222.48
reduced by owners
3.2.1 Ordinary shares increased
12,701,396.58 12,701,396.58
by owners
3.2.2 Capital increased by holders
of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other 4,030,393.82 4,030,393.82 7,821,432.08 11,851,825.90
3.3 Profit distribution -240,794,540.80 -240,794,540.80 -240,794,540.80
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
88
Konka Group Co., Ltd. Interim Report 2021
3.3.3 Appropriation to
-240,794,540.80 -240,794,540.80 -240,794,540.80
owners (or shareholders)
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital
reserves
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the
2,407,945,408.00 234,215,703.91 -17,166,086.08 1,211,721,109.67 4,440,026,770.40 8,276,742,905.90 2,317,120,549.67 10,593,863,455.57
Reporting Period
89
Konka Group Co., Ltd. Interim Report 2021
H1 2020
Unit: RMB
H1 2020
Equity attributable to owners of the Company as the parent
Other equity
instruments
P
P
r
e
e
r
f Les
p Sp
e s:
Item e eci Gen
Tre Other O Non-controlling
r Total owners’ equity
t Capital fic eral Retained
Share capital asu comprehensive Surplus reserves th Subtotal interests
r Ot
u reserves res rese earnings
e he ry income er
a erv rve
d r stoc
l e
s k
b
h
o
a
n
r
d
e
s
s
1. Balance as at the end of the
2,407,945,408.00 230,368,577.09 -21,293,103.52 1,211,721,109.67 4,239,763,606.89 8,068,505,598.13 1,858,192,188.67 9,926,697,786.80
period of prior year
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
90
Konka Group Co., Ltd. Interim Report 2021
Adjustment for business
combination under common
control
Other adjustments
2. Balance as at the beginning of
2,407,945,408.00 230,368,577.09 -21,293,103.52 1,211,721,109.67 4,239,763,606.89 8,068,505,598.13 1,858,192,188.67 9,926,697,786.80
the Reporting Period
3. Increase/ decrease in the
-316,704.47 -25,695,477.77 -26,012,182.24 34,565,695.53 8,553,513.29
period (“-” for decrease)
3.1 Total comprehensive
-316,704.47 94,701,792.63 94,385,088.16 -20,982,635.17 73,402,452.99
income
3.2 Capital increased and
66,061,830.70 66,061,830.70
reduced by owners
3.2.1 Ordinary shares increased
86,836,439.00 86,836,439.00
by owners
3.2.2 Capital increased by
holders of other equity
instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other -20,774,608.30 -20,774,608.30
3.3 Profit distribution -120,397,270.40 -120,397,270.40 -10,513,500.00 -130,910,770.40
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to -120,397,270.40 -120,397,270.40 -10,513,500.00 -130,910,770.40
91
Konka Group Co., Ltd. Interim Report 2021
owners (or shareholders)
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital
reserves
3.4.2 Increase in capital (or
share capital) from surplus
reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined
benefit schemes transferred to
retained earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the
2,407,945,408.00 230,368,577.09 -21,609,807.99 1,211,721,109.67 4,214,068,129.12 8,042,493,415.89 1,892,757,884.20 9,935,251,300.09
Reporting Period
92
Konka Group Co., Ltd. Interim Report 2021
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2021
Unit: RMB
H1 2021
Other equity instruments Less: Other
Item Capital Specific Retained Total owners’
Share capital Preferred Perpetu Treasury comprehensi Surplus reserves Other
Other reserves reserve earnings equity
shares al bonds stock ve income
1. Balance as at the end of the period of prior year 2,407,945,408.00 112,570,352.72 -2,682,217.31 1,227,564,785.19 2,352,385,005.09 6,097,783,333.69
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments 1,017.42 1,017.42
2. Balance as at the beginning of the Reporting
2,407,945,408.00 112,570,352.72 -2,682,217.31 1,227,564,785.19 2,352,386,022.51 6,097,784,351.11
Period
3. Increase/ decrease in the period (“-” for decrease) -2,671,625.35 1,182,217.31 -411,975,210.57 -413,464,618.61
3.1 Total comprehensive income 1,182,217.31 -171,180,669.77 -169,998,452.46
3.2 Capital increased and reduced by owners -2,671,625.35 -2,671,625.35
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other equity
instruments
3.2.3 Share-based payments included in owners’
equity
3.2.4 Other -2,671,625.35 -2,671,625.35
3.3 Profit distribution -240,794,540.80 -240,794,540.80
3.3.1 Appropriation to surplus reserves
93
Konka Group Co., Ltd. Interim Report 2021
3.3.2 Appropriation to owners (or shareholders) -240,794,540.80 -240,794,540.80
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital) from
capital reserves
3.4.2 Increase in capital (or share capital) from
surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income transferred
to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2,407,945,408.00 109,898,727.37 -1,500,000.00 1,227,564,785.19 1,940,410,811.94 5,684,319,732.50
H1 2020
Unit: RMB
H1 2020
Other equity instruments Less: Other
Item Capital Specific Retained Total owners’
Share capital Preferred Perpetu Treasury comprehensi Surplus reserves Other
Other reserves reserve earnings equity
shares al bonds stock ve income
94
Konka Group Co., Ltd. Interim Report 2021
1. Balance as at the end of the period of prior year 2,407,945,408.00 114,018,066.79 -2,682,217.31 1,227,564,785.19 2,245,698,875.22 5,992,544,917.89
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments 20,256,240.41 20,256,240.41
2. Balance as at the beginning of the Reporting
2,407,945,408.00 114,018,066.79 -2,682,217.31 1,227,564,785.19 2,265,955,115.63 6,012,801,158.30
Period
3. Increase/ decrease in the period (“-” for decrease) 174,053,916.78 174,053,916.78
3.1 Total comprehensive income 294,451,187.18 294,451,187.18
3.2 Capital increased and reduced by owners
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other equity
instruments
3.2.3 Share-based payments included in owners’
equity
3.2.4 Other
3.3 Profit distribution -120,397,270.40 -120,397,270.40
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or shareholders) -120,397,270.40 -120,397,270.40
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital) from
capital reserves
3.4.2 Increase in capital (or share capital) from
surplus reserves
95
Konka Group Co., Ltd. Interim Report 2021
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income transferred
to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2,407,945,408.00 114,018,066.79 -2,682,217.31 1,227,564,785.19 2,440,009,032.41 6,186,855,075.08
96
Konka Group Co., Ltd. Interim Report 2021
Konka Group Co., Ltd.
Notes to Financial Statements for H1 2021
(All amounts are expressed, unless otherwise stated, in Renminbi (RMB).)
I. Company Profile
1. Establishment
Konka Group Co., Ltd. (hereinafter referred to as “Company” or “the Company”), is a joint-stock
limited company reorganized from the former Shenzhen Konka Electronic Co., Ltd. in August
1991 upon approval of the People’s Government of Shenzhen Municipality, and has its ordinary
shares (A-share and B-share) listed on Shenzhen Stock Exchange with prior consent from the
People’s Bank of China Shenzhen Special Economic Zone Branch. On 29 August 1995, the
Company was renamed to “Konka Group Co., Ltd.” (Credibility code: 914403006188155783)
with its main business electronic industry. And now the headquarters locates in No. 28 of No. 12
of Keji South Rd., Science & Technology Park, Yuehai Street, Nanshan District, Shenzhen,
Guangdong Province.
2. Share capital
After the distribution of bonus shares, allotments, increased share capital and new shares issued
over the years, as of 30 June 2021, the Company has issued a total of 2,407,945,408.00 shares
(denomination of RMB1 per share) with a registered capital of RMB2,407,945,408.00.
3. The nature of the company's business and main operating activities
The Company and its subsidiaries are mainly engaged in the production and sales of colour TVs,
white goods, PCB, etc.; Industry trade business, environmental protection, semi-conductor, etc.
4. The financial statements contained herein have been approved for issue by the Board of
Directors of the Company on 26 August 2021.
II. Consolidation scope
1. The Company has a total of 150 subsidiaries included in the consolidation scope including
Electronics Technology, Anhui Konka, Dongguan Konka. The consolidation scope of the
Company for the Reporting Period increased by 13 households including Nantong Hongdin due
to incorporation and decreased by 6 households including Shenzhen Kangxin Property due to
losing control or cancellation compared to the previous year.
For details, please refer to Note 7 “Changes in the consolidation scope” and Note 8 "Equity in
Other Entities".
2. A check list of corporate names and their abbreviations mentioned in this Report
No. Corporate name Abbreviation
1 Anhui Konka Zhilian E-Commerce Co., Ltd. Anhui Zhilian
2 Haimen Konka Smart Technology Co., Ltd. Haimen Konka
3 Chengdu Konka Smart Technology Co., Ltd. Chengdu Konka Smart
4 Chengdu Konka Electronic Co., Ltd. Chengdu Konka Electronic
5 Nantong Hongdin Smart Technology Co., Ltd. Nantong Hongdin
6 Shenzhen Youzhihui Technology Co., Ltd. Youzhihui
7 Shenzhen Xiaojia Technology Co., Ltd. Xiaojia Technology
8 Liaoyang Kangshun Smart Technology Co., Ltd. Liaoyang Kangshun Smart
9 Liaoyang Kangshun Renewable Resources Co., Ltd. Liaoyang Kangshun Renewable
10 Nanjing Konka Electronics Co., Ltd. Nanjing Konka
97
Konka Group Co., Ltd. Interim Report 2021
No. Corporate name Abbreviation
11 Chuzhou Konka Precision Intelligent Manufacturing Technology Co.,Chuzhou Konka
Ltd.
12 Xi'an Huasheng Jiacheng Real Estate Co., Ltd. Xi'an Huasheng
13 GuangDong XingDa HongYe Electronic Co., Ltd. XingDa HongYe
14 Shanghai Xinfeng Zhuoqun PCB Co., Ltd. Shanghai Xinfeng
15 Shenzhen Konka Circuit Co., Ltd. Konka Circuit
16 Suining Konka Soft Electronic Technology Co., Ltd. Konka Soft Electronic
17 Suining Konka Hongye Electronics Co., Ltd. Konka Hongye Electronics
18 Boluo Konka Precision Technology Co., Ltd. Boluo Precision
19 Boluo Konka PCB Co., Ltd. Boluo Konka
20 Xiamen Dalong Trading Co., Ltd. Xiamen Dalong
21 Shenzhen Konka Electronics Technology Co., Ltd. Electronics Technology
22 Anhui Konka Tongchuang Electrical Appliances Co., Ltd. Anhui Tongchuang
23 Jiangsu Konka Smart Electrical Appliances Co., Ltd. Jiangsu Konka Smart
24 Anhui Konka Electrical Appliance Technology Co., Ltd. Anhui Electrical Appliance
25 Henan Frestec Refrigeration Appliance Co., Ltd. Frestec Refrigeration
26 Henan Frestec Electrical Appliances Co., Ltd. Frestec Electrical Appliances
27 Henan Frestec Household Appliances Co., Ltd. Frestec Household Appliances
28 Henan Frestec Smart Home Technology Co., Ltd. Frestec Smart Home
29 Shenzhen Konka Investment Holdings Co., Ltd. Konka Investment
30 Yibin Konka Technology Park Operation Co., Ltd. Yibin Konka Technology Park
31 Shenzhen Konka Capital Equity Investment Management Co., Ltd. Konka Capital
32 Shenzhen Konka Industrial Park Development Co., Ltd. Industrial Park Development
33 Konka Suiyong Investment (Shenzhen) Co., Ltd. Konka Suiyong
34 Shenzhen Kangquan Enterprise Management Consulting Co., Ltd. Kangquan Enterprise
35 Shenzhen Konka Suyuan Investment Industrial Co., Ltd. Konka Suyuan
36 Shenzhen Konka Shengxing Industrial Co., Ltd. Shengxing Industrial
37 Shenzhen Konka Zhitong Technology Co., Ltd. Zhitong Technology
38 Konka Factoring (Shenzhen) Co., Ltd. Konka Factoring
39 Beijing Konka Electronic Co., Ltd. Beijing Konka Electronic
40 Konka Financial Leasing (Tianjin) Co., Ltd. Konka Leasing
41 Suining Konka Industrial Park Development Co., Ltd. Suining Konka Industrial Park
42 Suining Electronic Technological
Suining Konka Electronic Technological Innovation Co., Ltd.
Innovation
43 Shanghai Konka Industrial Co., Ltd. Shanghai Konka
44 Yantai Kangjin Technology Development Co., Ltd. Yantai Kangjin
45 Shenzhen Konka Mobile Interconnection Technology Co., Ltd. Mobile Interconnection
46 Sichuan Konka Smart Terminal Technology Co., Ltd Sichuan Konka
98
Konka Group Co., Ltd. Interim Report 2021
No. Corporate name Abbreviation
47 Yibin Konka Smart Technology Co., Ltd. Yibin Smart
48 Shenzhen KONSEMI Co., Ltd. Shenzhen KONSEMI
49 Chongqing Konka Technology Development Co., Ltd. Chongqing Konka
50 Hefei KONSEMI Storage Technology Co., Ltd. Hefei KONSEMI
51 Hefei Yihe Electronic Co., Ltd. Yihe Electronic
52 Shenzhen Konka Huiying Technology Co., Ltd. Shenzhen Huiying Technology
53 Chongqing Konka Huiying Technology Co., Ltd. Chongqing Huiying Technology
54 Kowin Memory Technology (Shenzhen) Co., Limited Kowin Memory (Shenzhen)
55 Kowin Memory Technology (Hong Kong) Co., Limited Kowin Memory (Hong Kong)
56 Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd. Konka Xinyun Semiconductor
57 Konka Industrial and Trade Technology (Shenzhen) Co., Ltd. Industrial and Trade Technology
58 Shenzhen Nianhua Enterprise Management Co., Ltd. Shenzhen Nianhua
59 Konka Huazhong (Hunan) Technology Co., Ltd. Konka Huazhong
60 Shenzhen Wankaida Science and Technology Co., Ltd. Wankaida
61 Shenzhen Chuangzhi Electrical
Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Appliances
62 Suining Jiarun Property Co., Ltd. Suining Jiarun Property
63 Shenzhen Konka Electrical Appliances Co., Ltd. Konka Electrical Appliances
64 Shenzhen E2info Network Technology Co., Ltd. E2info
65 E2info (Hainan) Network Technology Co., Ltd. E2info (Hainan)
66 Anhui Konka Electronic Co., Ltd. Anhui Konka
67 Anhui Kangzhi Trade Co., Ltd. Kangzhi Trade
68 Shenzhen Konka Telecommunications Technology Co., Ltd. Telecommunication Technology
69 Konka Mobility Co., Limited Konka Mobility
70 Dongguan Konka Packing Materials Co., Ltd. Dongguan Packing
71 Dongguan Konka Electronic Co., Ltd. Dongguan Konka
72 Suining Konka Smart Technology Co., Ltd. Suining Konka Smart
73 Chongqing Konka Optoelectronic Technology Research Institute Co.,Chongqing Optoelectronic
Ltd. Technology Research Institute
74 Yibin Kangrun Environmental Technology Co., Ltd. Yibin Kangrun
75 Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd. Yibin Kangrun Medical
76 Yibin Kangrun Environmental Protection Power Generation Co., Ltd. Yibin Kangrun Environmental
Protection
77 Ningbo Khr Electric Appliance Co., Ltd. Ningbo Khr Electric Appliance
78 Jiangxi Konka New Material Technology Co., Ltd. Jiangxi Konka
79 Jiangxi High Transparent Substrate Material Technology Co., Ltd.Jiangxi High Transparent Substrate
(formerly known as “Jiangxi Golden Phoenix Nano-Grystallized Glass(formerly known as
Co., Ltd.”) “Nano-Grystallized Glass”)
80 Jiangsu Konka Special Material Technology Co., Ltd. Jiangsu Konka Special Material
99
Konka Group Co., Ltd. Interim Report 2021
No. Corporate name Abbreviation
81 Jiangxi Xinfeng Microcrystalline Jade Co., Ltd. Xinfeng Microcrystalline
82 Konka Huanjia Environmental Technology Co., Ltd. Konka Huanjia
83 Konka Huanjia (Henan) Environmental Technology Co., Ltd. Konka Huanjia (Henan)
84 Shandong Econ Technology Co., Ltd. Econ Technology
85 Econ Environmental Engineering Co., Ltd. Econ Environmental Engineering
86 Beijing Econ Runfeng Technology Co., Ltd. Beijing Econ
87 Binzhou Econ Zhongke Environmental Technology Co., Ltd. Binzhou Econ Zhongke
88 Dayi Kangrun Water Co., Ltd. Dayi Kangrun Water
89 Tingyuan Environmental Technology (Shanghai) Co., Ltd. Tingyuan Environmental
90 Shanghai Jiyi Environmental Technology Co., Ltd. Shanghai Jiyi
91 Kangrunhong Environmental Technology (Yantai) Co., Ltd. Kangrunhong Environmental
92 Donggang Kangrun Environmental Management Co., Ltd. Donggang Kangrun
93 Gaoping Kangrun Environmental Protection & Water Co., Ltd. Gaoping Kangrun
94 Xi’an Gaoling Kangrun Environmental Engineering Co., Ltd. Xi’an Kangrun
95 Changning Kangrun Water Co., Ltd. Changning Kangrun
96 Lushan Kangrun Environmental Management Co., Ltd. Lushan Kangrun Environmental
97 Tongchuan Kangrun Honghui Environmental Management Co., Ltd. Tongchuan Kangrun Honghui
98 Rushan Econ Water Environment Management Co., Ltd. Rushan Econ
99 Mengcheng Kangrun Anjian Water Co., Ltd. Mengcheng Kangrun
100 Chongzhou Kangrun Environment Co., Ltd. Chongzhou Kangrun
101 Suining Pengxi Kangrun Environmental Management Co., Ltd. Suining Pengxi Kangrun
102 Funan Kangrun Water Co., Ltd. Funan Kangrun Water
103 Subei Mongol Autonomous County Kangrun Water Co., Ltd. Subei Kangrun Water
104 Linfen Kangrun Jinze Water Supply Co., Ltd. Linfen Kangrun
105 Wuhan Runyuan Wastewater Treatment Co., Ltd. Wuhan Runyuan Wastewater
106 Binzhou Weiyijie Environmental Technology Co., Ltd. Binzhou Weiyijie
107 Binzhou Beihai Jingmai Industrial Development Co., Ltd. Binzhou Beihai Jingmai
108 Yantai Chunzhiran Environmental Technology Co., Ltd. Chunzhiran
109 Laizhou Lairun Holding Co., Ltd. Lairun Holding
110 Laizhou Binhai Wastewater Treatment Co., Ltd. Binhai Wastewater
111 Laizhou Lairun Environmental Protection Co., Ltd. Lairun Environmental Protection
112 Laizhou Lairun Wastewater Treatment Co., Ltd. Lairun Wastewater
113 Weifang Sihai Kangrun Investment Operation Co., Ltd. Weifang Sihai Kangrun
114 Xixian Kangrun Xijian Water Environment Development Co., Ltd. Xixian Kangrun
115 Ankang Kangrun Xinheng Water Environment Co., Ltd. Ankang Kangrun
116 Bokang Renewable Resources (Yantai) Co., Ltd. Bokang Renewable
117 Kangruncheng Environmental Technology (Yantai) Co., Ltd. Kangruncheng Environmental
Technology
100
Konka Group Co., Ltd. Interim Report 2021
No. Corporate name Abbreviation
118 Shaanxi Konka Intelligent Appliance Co., Ltd. Shaanxi Konka Intelligent
119 Shenzhen Konka Pengrun Technology & Industry Co., Ltd. Pengrun Technology
120 Jiaxin Technology Co., Ltd. Jiaxin Technology
121 Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd. Konka Ronghe
122 Chongqing Kangxingrui Environmental Technology Co., Ltd. Chongqing Kangxingrui
123 Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd. Chongqing Kangxingrui
Automobile Recycling
124 Chongqing Kanglei Optoelectronic Technology Co., Ltd. Chongqing Kanglei Optoelectronic
125 Henan Kangxin Property Co., Ltd. Henan Kangxin Property
126 Shenzhen Konka Unifortune Technology Co., Ltd. Konka Unifortune
127 Jiali International (Hong Kong) Limited Jiali International
128 Sichuan Kangjiatong Technology Co., Ltd. Kangjiatong
129 Kanghong (Yantai) Environmental Technology Co., Ltd. Kanghong (Yantai) Environmental
130 Jiangkang (Shanghai) Technology Co., Ltd. Jiangkang (Shanghai) Technology
131 Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd. Konka Intelligent Manufacturing
132 Yantai Laikang Industrial Development Co., Ltd. Yantai Laikang
133 Hainan Konka Material Technology Co., Ltd. Konka Material
134 Konka Ventures Development (Shenzhen) Co., Ltd. Konka Ventures
135 Yibin Konka Incubator Management Co., Ltd. Yibin Konka Incubator
136 Yantai Konka Healthcare Enterprise Service Co., Ltd. Yantai Konka
137 Chengdu Anren Konka Cultural and Creative Incubator Management
Chengdu Anren
Co., Ltd.
138 Guiyang Konka Enterprise Service Co., Ltd. Konka Enterprise Service
139 Nanjing Chuanghui Smart Technology Co., Ltd. Chuanghui Smart
140 Shenzhen Konka Eco-Development Investment Co., Ltd. Konka Eco-Development
141 Shenzhen Kangxin Property Co., Ltd. Shenzhen Kangxin Property
142 Henan Kanghan Property Co., Ltd. Henan Kanghan Property
143 Konka (Europe) Co., Ltd. Konka Europe
144 Hong Kong Konka Limited Hong Kong Konka
145 Kangxin Semiconductor (Yantai) Co., Ltd. Kangxin Semiconductor
146 Hongdin International Trading Limited Hongdin Trading
147 Konka North America LLC Konka North America
148 Kanghao Technology Co., Ltd. Kanghao Technology
149 Hongdin Invest Development Limited Hongdin Invest
150 Chain Kingdom Memory Technologies Co., Limited Chain Kingdom Memory
Technologies
151 Chain Kingdom Memory Technologies (Shenzhen) Co., Limited Chain Kingdom Memory
Technologies (Shenzhen)
152 Hefei Chain Kingdom Memory Technologies Co., Limited Hefei Chain Kingdom Memory
Technologies
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No. Corporate name Abbreviation
153 Konka Smartech Limited Konka Smartech
154 Hongjet (Hong Kong) Company Limited Hongjet
155 Yantai Kangyun Industrial Development Co., Ltd. Yantai Kangyun
156 Yantai Kangyun Property Development Co., Ltd. Yantai Kangyun Property
III. Basis for the Preparation of Financial Statements
1. Basic for the preparation
With the going-concern assumption as the basis and based on transactions and other events that
actually occurred, the Company prepared financial statements in accordance with The Accounting
Standards for Business Enterprises issued by the Ministry of Finance and other regulations as
well as the accounting policies and estimations stipulated in the Note IV “Significant Accounting
Policies and Estimations”.
2. Going-concern
The Company does not undergo any affair or situation that causes major doubt about the
continuous operation capacity within 12 months from the end of the Reporting Period.
IV. Important Accounting Policies and Estimations
The specific accounting policies and accounting estimates formulated by the company based on
the actual production and operation characteristics include the recognition and measurement of
bad debt provision for receivables, the measurement of issued inventories, the classification of
fixed assets and depreciation methods, amortization of intangible assets, revenue recognition and
measurement, etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually and completely present the
Company’s financial positions, business results and cash flows, and other relevant information.
2. Fiscal Period
The Company’s fiscal year starts on January 1 and ends on December 31 of every year according
to the Gregorian calendar.
3. Operating Cycle
An operating cycle for the Company is 12 months, which is also the classification criterion for the
liquidity of its assets and liabilities.
4. Recording Currency
The Company adopted Renminbi as the bookkeeping base currency.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not
under the Same Control
As the combining party, the assets and liabilities obtained by the Company in a business
combination under the same control shall be measured on the basis of their carrying value in the
final controlling party on the combining date. As for the balance between the carrying value of the
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net assets obtained and the carrying value of the consideration paid by it, the capital reserve shall
be adjusted. If the capital reserve is not sufficient to be offset, the retained earnings shall be
adjusted.
The identifiable assets, liabilities and contingent liabilities of the acquiree acquired in the
business combination under different control shall be measured at fair value on the acquisition
date. The merger cost is the sum of the fair value of cash or non-cash assets, liabilities issued or
assumed, equity securities issued, etc. paid by the Company on the purchase date to gain control
over the purchased party and all directly related expenses incurred in the business combination
(The merge cost of business combination realized step by step through multiple transactions is the
sum of every single transaction’s cost). The balance that the combined cost greater than the fair
value share of the identifiable net assets of the purchased party obtained in the combination shall
be recognized as goodwill; When the merger cost is less than the fair value share of the
identifiable net assets of the acquiree acquired in the merger, the fair value of all identifiable
assets, liabilities and contingent liabilities acquired in the merger, and non-cash assets of the
merger consideration or equity securities issued, etc. shall be reviewed first. After review, if the
merger cost is still less than the fair value share of the identifiable net assets of the acquiree
acquired in the merger, the difference shall be included in the non-operating income of the merger
period.
6. Methods for Preparing Consolidated Financial Statements
The scope of consolidation includes the Company and its all subsidiaries.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Group during the preparation of the consolidated financial
statements, where the accounting policies and the accounting periods are inconsistent between the
Group and subsidiaries.
All significant internal transactions, current balances and unrealized profits within the scope of
consolidation shall be offset when preparing the consolidated statement. The shares of the
subsidiary's owner's equity that do not belong to the parent company and the shares of minority
shareholders' equity in current net profit and loss, other comprehensive income and total
comprehensive income shall be respectively listed in the consolidated financial statement
"Minority shareholders' equity, minority shareholders' profit and loss, other comprehensive
income that belongs to minority shareholders and total comprehensive income that belongs to
minority shareholders".
For subsidiaries acquired through merger of enterprises under the same control, their operating
results and cash flows are included in the consolidated financial statements from the beginning of
the current merger period. When preparing the comparative consolidated financial statements, the
relevant items in the financial statements of the previous year shall be adjusted as if the
consolidated reporting entity had existed since the final controlling party began to control it.
The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
the same control is acquired step by step through multiple transactions, and finally form the
business combination, when preparing the consolidated statement, it shall be deemed as the
adjustment is made in the current state when the final controlling party starts to control. And
when compiling the comparative report, the assets and liabilities of the merged party shall be
merged into the comparative statement of the consolidated financial statements of the
consolidated Company without any earlier than the time when the Company and the merged party
are under the control of the ultimate controlling party, and the combined net increased assets shall
be adjusted to the relevant items under owners' equity in the comparative statements. In order to
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avoid the re-calculation of the net assets value of the merged party, the long-term equity
investment held by the Company before the merger, the confirmed relevant profit and loss on the
same party with the Company and the merged party on the date of acquisition of the original
equity from the final control date to the merger date, and changes of other comprehensive income
and other net assets shall offset the beginning retained earnings and current profits and losses of
the comparative statement period respectively.
For subsidiaries acquired through business combination under the different control, the operating
results and cash flow shall be included in the consolidated financial statements from the date
when the Company obtains the control right. When preparing the consolidated financial
statements, the financial statements of the subsidiaries shall be adjusted on the basis of the fair
value of the identifiable assets, liabilities and contingent liabilities determined on the acquisition
date.
The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
not under the same control is successively obtained through several transactions and eventually
the enterprise merger is conducted. For example: At the occasion of the equity of the investee
under different control is acquired step by step through multiple transactions and eventually form
the business combination, when preparing the consolidated statement, the equity of the investee
held before the purchase date is re-measured according to the fair value of the equity on the
purchase date, and the difference between the fair value and its book value is included in the
current investment income. The equity of the acquiree held before the relevant purchase date
involves other comprehensive income under the equity method and other changes in owner's
equity other than net profit and loss, other comprehensive income and profit distribution, which
are converted into investment profit and loss in the current period of the purchase date, except for
other comprehensive income arising from the remeasurement of defined benefit plans's net
liabilities or changes in net assets by the investee.
The Company partially disposes of long-term equity investments in subsidiaries without losing
control, when preparing the consolidated financial statements, the difference between the disposal
price and the share of net assets that the subsidiaries have continuously calculated since the date
of purchase or the date of consolidation is corresponding to the disposal of long-term equity
investments. The capital premium or equity premium is adjusted. If the capital reserve is
insufficient to offset, the retained earnings are adjusted.
If the Company loses control over the investee due to the disposal of some equity investments and
other reasons, the remaining equity shall be re-measured at its fair value on the date of loss of
control when preparing the consolidated financial statements. The difference between the sum of
the consideration obtained from the disposal of equity and the fair value of the remaining equity,
minus the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger, is included in
the investment profit and loss of the current period when the control right is lost, and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment, etc.,
will be transferred to the current investment profit and loss when the control right is lost.
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If the Company disposes of the equity investment in a subsidiary company step by step through
multiple transactions until the loss of control right, if the transactions of the disposal of the equity
investment in a subsidiary company until the loss of control right belong to a package transaction,
the transactions shall be treated as transactions of the disposal of the subsidiary company and the
loss of control right for accounting. However, the difference between the disposal price and the
share of the subsidiary's net assets corresponding to the disposal investment before the loss of
control right is recognized as other comprehensive income in the consolidated financial
statements, and is transferred to the investment profit and loss of the current period when the
control right is lost.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
The Company classifies joint arrangements into joint operations and joint ventures. For a joint
operation, the Company, as a joint operator, recognizes the assets and liabilities that it holds and
bears in the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities
according to the Company’s stake in the joint operation; recognizes relevant income and expense
according to the Company’s stake in the joint operation. When the Company purchases or sells
the assets not constituting business with the joint operation, the Company only recognized the
share of the other joint operators in the gains and losses arising from the transaction.
8. Cash and Cash Equivalents
In the Company’s understanding, the cash in the cash flow statement includes cash on hand and
deposits that can be used for cover, the cash equivalents in the cash flow statement include high
circulating investments held within three months which are easily convertible into known amount
of cash and whose risks in change of value are minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency transaction
As for foreign currency transaction, the Company converted the foreign currency amount into
RMB amount at the exchange rate at the beginning of the month of transaction occurrence date
(normally referred to as the central parity rate of foreign exchange rate on the same day published
by the People’s Bank of China, the same below). On the balance sheet date, the monetary items in
foreign currency were converted into RMB at the spot exchange rate on balance sheet date.
Except the exchange difference arising from special foreign-currency borrowing for the purpose
of construction or production of assets meeting capitalization conditions treated in the principle of
capitalization, the conversion difference was directly included in the current profits and losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot
exchange rate on balance sheet date; except for “undistributed profit”, owner’s equity items were
converted at the sport exchange rate at the time of business occurrence; income and expenditure
items in income statement were converted at the average exchange rate for the period (monthly
average exchange rate) of the transaction occurrence date. The conversion difference of foreign
currency statements arising from the aforementioned conversion was presented in other
comprehensive income item. The foreign currency cash flow was converted at the average
exchange rate for the period (monthly average exchange rate) of the cash flow occurrence date.
The amount of exchange rate change influence on cash was independently presented in cash flow
statement.
10. Financial Assets and Financial Liabilities
The Company recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.
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(1) Financial assets
1) Classification, recognition and measurement of financial assets
The Company classifies the financial assets into financial assets measured at amortized cost,
financial assets measured by the fair value and the changes recorded in other comprehensive
income and financial assets at fair value through profit or loss based on the business model for
financial assets management and characteristics of contractual cash flow of financial assets
The Company classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: ①The business mode of the Company to manage the financial
assets targets at collecting the contractual cash flow. ②The contract of the financial assets
stipulates that the cash flow generated in the specific date is the payment of the interest based on
the principal and outstanding principal amount. These financial assets initially measured at fair
value and relevant transaction cost shall be included into the initial recognized amount and
subsequently measured at amortized cost. Except for those designated to be hedge items, the
difference between the initial recognized amount and the amount due shall be amortized at actual
interest rate and their amortization, impairment and exchange gain and loss as well as gains or
losses arising from derecognition shall be recorded into the current profit or loss.
The Company classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: ①The Business mode for
managing financial assets of the Company takes contract cash flow collected as target and selling
as target. ②The contract of the financial assets stipulates that the cash flow generated in the
specific date is the payment of the interest based on the principal and outstanding principal
amount. These financial assets initially measured at fair value and relevant transaction cost shall
be included into the initial recognized amount. Except for those designated as hedged items, as
for these financial assets, except for gains or losses on credit impairment, exchange gain and loss
and interest of financial assets measured at actual interest rate, other gains or losses generated
shall be recorded into other comprehensive income. When derecognized, the accumulated gains
and losses originally recorded into other comprehensive income shall be transferred out into the
current profit or loss.
The Company recognizes interest income according to the effective interest rate method. Interest
income is calculated and determined according to the book balance of the financial asset
multiplied by the actual interest rate, except for the following circumstances: ① For the financial
asset with credit impairment that has been purchased or originated, from the initial recognition,
the interest income is calculated and determined according to the amortized cost of the financial
asset and the actual interest rate adjusted by credit. ② For financial assets purchased or originated
that have not suffered credit impairment but have suffered credit impairment in subsequent
periods, the interest income shall be calculated and determined according to the amortized cost
and actual interest rate of the financial assets in subsequent periods.
The Company designates non-transactional investment in equity instruments as financial assets at
fair value through other comprehensive income. Those designated non-transactional investment in
equity instruments by the Company is initially measured at fair value and relevant transaction
cost shall be recorded into the initial recognized amount. Except for dividends (excluding those
belonging to recovery of investment cost) which shall be recorded into the current profit or loss,
other relevant gains and losses (including exchange gains and losses) shall be recorded into other
comprehensive income and cannot be transferred into the current profit or loss subsequently.
When derecognized, the accumulated gains or losses originally recorded into other
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comprehensive income shall be transferred out into retained earnings. Equity instrument
investments measured at fair value through other comprehensive income included: Equity
investments to be held in the long term as planned by the Company for strategic purpose, with no
control, joint control or significance influence, and with no active market quotation.
The Company classifies financial assets not belonging to above two as financial assets at fair
value through profit or loss which shall be initially measured at fair value and relevant transaction
cost shall be directly recorded into the current profit or loss. Gains or losses arising from these
financial assets shall be recorded into the current profit or loss.
The contingent consideration recognized by the Company in the business combination not under
the same control which constitutes a financial asset shall be classified as the financial asset at fair
value through profit or loss.
2) Recognition and measurement of financial assets transfer
The Company derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired; 2) the enterprise has transferred its
rights to receive cash flows from the asset to a third party under a pass-through arrangement; or 3)
the enterprise has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the overall transfer of financial assets fulfills the requirements for derecognition, the difference
between the book value of the transferred financial assets and the sum of the consideration received
due to the transfer and the corresponding derecognition part of the accumulated amount of fair value
changes originally directly included in other comprehensive income (the contract terms involving the
transferred financial assets stipulate that the cash flow generated on a specific date is only the payment
of the principal and interest based on the unpaid principal amount) shall be included in the current
profits and losses.
If the partial transfer of financial assets satisfies the conditions for termination confirmation, the
entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values, and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally
included in other comprehensive income that should be apportioned to the derecognition part And
the payment of interest based on the outstanding principal amount), and the difference between
the total book value of the aforesaid financial assets allocated is included in the current profit and
loss.
(2) Financial liabilities
1) Classification, recognition and measurement of financial liabilities
The Company’s financial liabilities are, on initial recognition, classified into financial liabilities at
fair value through profit or loss and other financial liabilities.
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
and financial liabilities designated at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss. The subsequent measurement shall be at
fair value and gains or losses arising from changes in fair value and the dividends and interest
expense related to the financial liability shall be the current profit or loss.
Other financial liabilities shall be subsequently measured at amortized cost with actual interest
rate. The Company classifies financial liabilities except for the following items as financial
liabilities at amortized cost: ①Financial liabilities at fair value through profit or loss including
held-for-trading financial liabilities (including the derivative instruments belonging to financial
liabilities) and designated financial liabilities at fair value through profit or loss. ②Financial
liabilities arising from the transfer of financial assets not meeting the derecognition conditions or
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continuous involvement in the transferred financial assets. ③Financial guarantee contract not
belonging to cases of above ① or ② and loan commitments at interest rate lower than the market
rate not belonging to the case in ①.
The Company treats the financial liability arising from contingent consideration recognized as the
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.
2) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being
terminated, derecognition of such financial liabilities (or partial financial liabilities) is conducted
by the Company. If the Company (borrower) concludes an agreement with the lender to replace
existing financial liabilities with new ones and contact terms of new financial liabilities are
different from those of existing financial liabilities, derecognition of existing financial liabilities
and recognition of new financial liabilities shall be conducted. In case of material alteration of
contract terms of existing financial liabilities (partial financial liabilities) by the Company,
derecognition of existing financial liabilities and recognition of new financial liabilities as per
modified terms shall be conducted. In case of derecognition of financial liabilities (partial
financial liabilities), the Company includes the balance between its carrying value and payment
consideration into the current profit or loss.
(3) Determination of financial assets and liabilities’ fair value
The Company measured the fair value of financial assets and financial liabilities according to the
price at major market. If major market does not exist, the fair value of financial assets and
financial liabilities was measured according to the price at the most advantageous market through
applying valuation technique applicable at the time and with sufficient usable data and other
information support. The inputs for fair value measurement were classified into three levels.
Level 1 is the unadjusted quotation of the same assets or liabilities on active market available on
the measurement date. Level 2 is the input of relevant assets or liabilities other than that in level 1
that are observable either directly or indirectly. Level 3 is the unobservable input of relevant
assets or liabilities. The Company preferred level 1 input, and applied level 3 input at last. Level 1
input was applicable for listed stock and bond held by the Company, level 2 input for financing of
accounts receivable (mainly bank acceptance bill and trade acceptance bill meeting derecognition
requirements after transfer), and level 3 input for other non-current financial assets (unlisted
equity investment held by the Company) and held-for-trading financial assets (mainly financial
products held by the Company). The level attributed to the fair value measurement result was
determined according to the lowest level of the input with much significance to fair value
measurement in general.
The Company measured the investment of equity instruments at fair value. However, under
limited situation, if the recent information for determining the fair value was insufficient, or the
potential estimated amount of fair value was in wide range, and the cost represented the optimal
estimation of fair value in such range, such cost could represent appropriate estimation of fair
value in such range. Such equity instrument investments included: Equity investments held by the
Company measured at fair value with changes included in the current profits and losses with no
control, joint control or significance influence; non-trading equity instrument investments were
designated as financial assets measured at fair value through other comprehensive income.
(4) Offsetting financial assets and financial liabilities
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The Company’s financial assets and liabilities shall be separately presented in the balance sheet
and not set off each other. But when meeting the following conditions at the same time, the net
amount after offset shall be presented in the balance sheet: (1) The Company has the statutory
right to set off recognized amount which is currently executable; (2) The Company plans to settle
with the net amount or realize the financial asset and pay off the financial liability simultaneously.
(5) The distinction between financial liabilities and equity instruments and related treatment
methods
The Company distinguishes the financial liabilities and equity instruments according to the
following principles: (1) If the Company cannot unconditionally avoid performing a contractual
obligation by delivering cash or other financial assets, the contractual obligation meets the
definition of financial liabilities. Although some financial instruments do not explicitly include
the terms and conditions of the obligation to deliver cash or other financial assets, they may
indirectly form contractual obligations through other terms and conditions. (2) If a financial
instrument must be settled with or can be settled with the Company's own equity instrument, it is
necessary to consider whether the Company's own equity instrument used to settle the instrument
is used as a substitute for cash or other financial assets, or to enable the holder of the instrument
to enjoy the residual equity in the assets of the issuer after deducting all liabilities. If it belongs to
the former condition, the instrument is the financial liability of the issuer; if it belongs to the latter
condition, the instrument is the equity instrument of the issuer. In some cases, a financial
instrument contract requires the Company to use or use its own equity instrument to settle the
financial instrument, in which the amount of contractual rights or contractual obligations is equal
to the number of its own equity instruments available or to be delivered multiplied by its fair
value at the time of settlement, regardless of whether the amount of contractual rights or
obligations is fixed, whether it is entirely or partially based on changes in variables other than the
market price of the Company's own equity instruments, the contract shall be classified as a
financial liability.
In classifying financial instruments (or their components) in the consolidated statement, the
Company has taken into account all terms and conditions reached between the Company
members and the holders of financial instruments. If the Company as a whole undertakes the
obligation to deliver cash, other financial assets or settle accounts in other ways that cause the
instrument to become a financial liability due to the instrument, the instrument shall be classified
as a financial liability.
If financial instruments or their components are financial liabilities, the Company will include
interest, dividends (or dividends), gains or losses, and gains or losses arising from redemption or
refinancing, etc. in the current profits and losses.
If financial instruments or their components are equity instruments, when they are issued
(including refinancing), repurchased, sold or cancelled, the Company will treat them as changes
in equity and will not recognize changes in the fair value of equity instruments.
11. Impairment of Financial Assets
The Company needs to confirm that the financial assets subject to the impairment loss are the
financial assets measured based on the amortized cost, the debt instrument investment measured
based on the fair value with its variations included into other comprehensive incomes and the
lease outlay receivable, mainly including notes receivable, account receivable, other receivables,
investment on creditor’s rights, other investments on creditor’s rights and long-term receivables
etc. Besides, in respect of the contract assets and partial financial guarantee contract,
corresponding impairment provisions shall be calculated and withdrawn and corresponding credit
impairment losses recognized according to various accounting policies mentioned in this part.
(1) Methods for the Recognition of Impairment Provisions
For all mentioned items above, the Company shall calculate and withdraw corresponding
impairment provisions and recognize corresponding credit impairment losses according to
applicable expected credit loss measurement methods (general methods or simplified methods)
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with the expected credit loss as the basis.
Credit loss refers to the difference between all receivable contract cash flows and all expected
cash flows that are discounted to the present value based on the original actual interest rate -- the
present value of all cash shortfall. However, for the purchased or original financial assets subject
to the credit impairment, the Company shall realize the discounting based on the actual interest
rate subject to the credit adjustment.
General methods applied to measure the expected credit loss can be described as: the Company
shall evaluate whether the credit risk of the financial assets (including the contract assets and
other applicable items; the same below) increases remarkably after the initial recognition on the
balance sheet day; if the credit risk increases remarkably after the initial recognition, the
Company shall measure the provision for loss based on the specific expected credit loss amount
during the entire period of existence; if not, the Company shall measure the provision for loss
based on the specific expected credit loss amount in the following 12 months. While evaluating
the expected credit loss, the Company shall take all reasonable and well-founded information into
consideration, including the forward-looking information.
For the financial instrument of lower credit risk on the balance sheet day, the Company shall
assume that its credit risk does not increase remarkably after the initial recognition, and
corresponding provision for loss shall be measured according to the expected credit loss in the
following 12 months.
(2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial
Recognition
If any financial assets’ probability of default within the expected period of existence determined
on the balance sheet day is obviously higher than that within the expected period of existence
determined during the initial recognition, it shall indicate the remarkable increase of the financial
assets’ credit risk. Unless it is under special circumstances, the Company shall adopt various
variations in the default risk in the following 12 months as the reasonable basis for estimating
corresponding variations in the default risk within the entire period of existence and determining
whether the credit risk increases remarkably after the initial recognition.
(3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk, the Company shall separately
evaluate its credit risk, including the receivables from related parties, receivables involved in any
dispute with the other party or any lawsuit and arbitration, and receivables with obvious evidence
showing that the debtor cannot fulfill the due payment obligation etc.
Except for the financial assets whose credit risk shall be separately evaluated, the Company shall
divide these financial assets into different combinations based on the specific risk features, on
which basis, corresponding credit risks can be evaluated.
(4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period, the Company shall calculate the expected credit losses of various
financial assets. If the expected credit loss is higher than the carrying amount of its current
impairment provision, the difference shall be recognized as the impairment loss; if lower, the
difference shall be recognized as the gain from the impairment.
12. Notes Receivable
For notes receivable, the Company shall measure the provision for loss based on the specific
expected credit loss during the entire period of existence. According to the credit risk
characteristics thereof, except those with separate evaluation of credit risk, notes receivable can
be divided into different combinations:
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Item Basis
Bank Acceptance The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of acceptors (the same as accounts receivable)
13. Accounts Receivable
For account receivable and contract assets excluding significant financing composition, the
Company shall measure the provision for loss according to the specific expected credit loss
amount within the entire period of existence.
For account receivable, contract assets and lease payment receivable including significant
financing composition, the Company shall always measure the provision for loss according to the
specific expected credit loss amount within the period of existence.
Except the account receivable and contract assets whose credit risks shall be separately evaluated,
the Company shall divide them into different combinations based on the specific credit risks:
Item Basis
Aging Combination This portfolio is accounts receivable with aging as the credit risk feature.
Project Funds Combination This portfolio is the project-related receivables.
Related party combination The accounts receivable within the scope of consolidation
14. Accounts Receivable Financing
The Company’s accounts receivable financing is based on expected credit losses, and provision is
made for depreciation reserves in accordance with the expected credit loss measurement method
for notes receivable.
15. Other Receivables
The Company measures the loss reserves on other receivables in accordance with the following
circumstances: a) For financial assets whose credit risk has not significantly increased since the
initial recognition, the Company measures the loss reserves at the amount of expected credit
losses for the next 12 months; b) For financial assets whose credit risk has increased significantly
since the initial recognition, the Company measures the loss reserves at an amount equal to the
expected credit losses for the entire period of the financial instrument; c) For financial assets
purchased or originated from credit impairment, the Company measures the loss reserves at an
amount equal to the expected credit losses over the entire period of the financial instrument.
Except other receivables whose credit risks shall be separately evaluated, the Company shall
divide them into different combinations based on the specific credit risk features:
Item Basis
Aging Combination This portfolio is accounts receivable with aging as the credit risk feature.
This combination shall regard other receivables of extremely low risk
Low Risk Combination (including the revolving fund, the cash deposit and the guarantee deposit) as
the credit risk feature.
Related party combination Other receivables within the scope of consolidation.
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16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases remarkably
after the initial recognition, the Company shall measure the impairment loss based on the specific
expected credit loss in the following 12 months or during the entire period of existence. Except
long-term account receivables whose credit risks shall be separately evaluated, the Company shall
divide them into different combinations based on the specific credit risk features:
Item Basis
Financing Lease Regarding the long-term receivables related to the financing lease as the credit
Combination risk characteristics
Regarding the long-term receivables related to the PPP Project as the credit risk
Franchise Combination
characteristics
17. Inventories
The Company's inventories mainly include raw materials, products in process, semi-finished
products, and entrusted processing materials.
The perpetual inventory method is used for inventories. Inventories are priced at the actual cost at
the time of acquisition; the actual cost of inventories is determined by the weighted average
method when inventories are claimed or issued. Low-value consumables and packaging are
amortized through the one-off charge-off method.
The net realizable value of inventories of goods that are used directly for sale, such as inventory
goods, products in process, and materials for sale, is determined by the estimated selling price of
the inventory minus estimated sale expenses, and related taxes; the net realizable value of
inventories of materials held for production is determined by the estimated selling price of the
finished goods produced minus the estimated costs of completion, estimated sale expenses, and
related taxes.The inventories with various numbers and low unit price shall be made provisions
for depreciation reserves of inventories according to the category of inventories. For inventories
that are produced and sold in the same region with same or similar end use or purposes, and hard
to be measured separately from other items, it shall be made merger provisions for falling price of
inventories.
The net realizable value refers, in the ordinary course of business, to the account after deducting
the estimated cost of completion, estimated sale expense and relevant taxes from the estimated
sale price of inventories. The net realizable value of inventories shall be fixed on the basis of
valid evidence as well as under consideration of purpose of inventories and the effect of events
after balance-sheet-date.
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After withdrawing the depreciation reserves for inventories, if the factors, which cause any
write-down of the inventories, have disappeared, causing the net realizable value of inventories is
higher than its carrying amount; the amount of write-down shall be reversed from the original
amount of depreciation reserve for inventories. The reversed amount shall be included in the
profits and losses of the current period.
18. Contract Assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the company to receive consideration after transferring goods
to customers, and this right depends on factors other than the passage of time. If the company
sells two clearly distinguishable products to customers, it has the right to receive payment
because one of the products has been delivered, but the payment is also dependent on the delivery
of the other product, the company has the right to receive payment as a contract assets.
(2) Determination method and accounting treatment method of expected credit loss of contract
assets
The method of determining the expected credit loss of contract assets, refer to the description of
11. Financial Asset Impairment, 12. Notes Receivable, 13. Accounts Receivable.
The company calculates the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the book value of the current contract asset impairment
provision, the company will recognize the difference as an impairment loss and debit the "asset
impairment loss". Credited "Contract asset impairment provision". On the contrary, the company
recognizes the difference as an impairment gain and keeps the opposite accounting records.
If the company actually incurs credit losses and determines that the relevant contract assets
cannot be recovered, and the written-off is approved, the "contract asset impairment reserve" is
debited and the "contracted asset" is credited based on the approved write-off amount. If the
written-off amount is greater than the provision for loss that has been withdrawn, the "asset
impairment loss" is debited based on the difference.
19. Contract Costs
(1) The method of determining the amount of assets related to contract costs
The company’s assets related to contract costs include contract performance costs and contract
acquisition costs.
The contract performance cost, that is, the cost incurred by the company for the performance of
the contract, does not fall within the scope of other accounting standards and meets the following
conditions at the same time, as the contract performance cost is recognized as an asset: the cost
and a current or expected contract Directly related, including direct labor, direct materials,
manufacturing expenses (or similar expenses), clearly the cost borne by the customer, and other
costs incurred only due to the contract; this cost increases the company's future resources for
fulfilling its performance obligations; This cost is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the company to obtain the
contract is expected to be recovered, and is recognized as an asset as the contract acquisition cost;
if the asset amortization period does not exceed one year, it is included in the current profit and
loss when it occurs. Incremental cost refers to the cost (such as sales commission, etc.) that the
company will not incur without obtaining the contract. The company's expenses incurred in
obtaining the contract, other than the expected incremental cost that can be recovered (such as
travel expenses incurred regardless of whether the contract is obtained, etc.), are included in the
current profit and loss when they are incurred, but it is clearly borne by the customer except.
(2) Amortization of assets related to contract costs
The company’s assets related to contract costs are amortized on the same basis as the commodity
revenue recognition related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
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When the company determines the impairment loss of assets related to contract costs, it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant business accounting standards; then, based on their book value
higher than the company’s transfer and If the difference between the remaining consideration that
the asset-related commodity is expected to obtain and the estimated cost incurred for the transfer
of the relevant commodity, the excess shall be provided for impairment and recognized as an
asset impairment loss.
If the depreciation factors of the previous period have changed, and the aforementioned difference
is higher than the book value of the asset, the original provision for asset impairment shall be
reversed and included in the current profit and loss, but the book value of the asset after the
reversal shall not exceed Assuming no provision for impairment is made, the book value of the
asset on the date of reversal.
20. Long-term Equity Investments
The Company's long-term equity investments mainly consist of investments in subsidiaries,
associated enterprises, and joint ventures.
The Company’s judgment on joint control is based on the fact that all participants or a
combination of participants collectively control the arrangement and that the policies of the
activities related to the arrangement shall be unanimously agreed by those participants who
The Company is generally considered to have a significant influence on the investee when it owns,
directly or indirectly through a subsidiary, above 20% but below 50% of the voting rights of the
investee. If the Company holds less than 20% of the voting rights of the investee, it also needs to
judge whether the Company has a significant influence on the investee by taking into account the
facts and circumstances such as having representatives on the board of directors or similar
authority of the investee, or participating in the process of formulating financial and operating
policies of the investee, or having major transactions with the investee, or sending management
personnel to the investee, or providing key technical information to the investee.
If control over the investee is formed, it is a subsidiary of the Company. For long-term equity
investment acquired through business combination under the same control, the initial investment
cost of the long-term equity investments is recorded at the merger date based on the acquisition of
the merged party's share of the book value of the net assets of the ultimate controller in the
consolidated financial statement. If the book value of the net assets of the merged party on the
merger date is negative, the cost of long-term equity investments is determined as zero.
If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the treatment
of long-term equity investments in the parent company's financial statements shall be made in the
Reporting Period in which control is obtained. For example, if the business combination that is
ultimately formed through multiple transactions to acquire the equity of the investee under the
same control belongs to a package deal, the Company shall conduct accounting treatment to treat
each transaction as a single transaction to acquire control. If the transaction is not a package deal,
the initial investment cost of the long-term equity investment is based on the share of the book
value of the net assets of the merged party in the consolidated financial statements of the ultimate
controller at the merger date. The difference between the initial investment cost and the sum of
the book value of the long-term equity investment before the merger plus the book value of the
new consideration paid for further acquisition of shares at the merger date shall offset against
capital reserve; and where capital reserve is insufficient to be offset, the retained earnings shall be
adjusted.
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For long-term equity investment acquired through business combination not under the same
control, the initial investment cost shall be the consolidation cost.
If the equity of the investee not under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the cost
treatment of long-term equity investments in the parent company's financial statements shall be
made in the Reporting Period in which control is obtained. For example, if the business
combination that is ultimately formed through multiple transactions to acquire the equity of the
investee not under the same control belongs to a package deal, the Company shall conduct
accounting treatment to treat each transaction as a single transaction to acquire control. If the
transaction is not a package deal, the sum of the book value of the equity investment originally
held plus the cost of the new investment shall be the initial investment cost calculated in
accordance with the cost method. If the equity held prior to the purchase date is accounted by the
equity method, the relevant other comprehensive income accounted by the original equity method
shall not be adjusted. The same basis of accounting as that used for the direct disposal of the
related assets or liabilities by the investee is used for the disposal of the investment. If the equity
held prior to the purchase date is a financial asset designated to be measured at fair value with
fluctuations included in other comprehensive income, the cumulative profit or loss on the equity
previously recognized in other comprehensive income shall be transferred from other
comprehensive income to the retained earnings; if the equity is a financial asset measured at fair
value and the changes of which are included in profits and losses of the current period, the equity
previously recognized as profits and losses from the changes in fair value shall not be transferred
to investment income. If the equity held prior to the purchase date is an investment for other
equity instruments, the changes in fair value of the equity investment accumulated in other
comprehensive income before the purchase date shall be transferred to the retained earnings.
Except for the long-term equity investments acquired through business combination hereinabove,
long-term equity investments acquired by paying cash are recorded as investment cost based on
the actual purchase price paid; long-term equity investments acquired by issuing equity securities
are recorded as investment cost based on the fair value of the equity securities issued; long-term
equity investments invested by investors are recorded as investment cost based on the value
agreed in the investment contract or agreement.
The Company calculates its investments in subsidiaries through the cost method and its
investments in joint ventures and associate enterprises through the equity method.
For long-term equity investments calculated by the cost method for subsequent measurement, the
book value of the cost of long-term equity investments shall be increased by the fair value of the
cost amount paid for the additional investment and relevant transaction costs incurred when the
additional investment is made. Cash dividends or profits declared by the investee are recognized
as investment income for the current period in accordance with the due amount.
In addition to the above-mentioned long-term equity investment obtained through business
combination, the long-term equity investment obtained by paying cash shall be regarded as the
investment cost according to the purchase price actually paid; the long-term equity investment
obtained by issuing equity securities shall be regarded as the investment cost according to the fair
value of issuing equity securities; the long-term equity investment invested by investors shall be
regarded as the investment cost according to the investment contract or agreement The value of
the company is regarded as the cost of investment.
The company adopts the cost method for investment in subsidiaries and the equity method for
investment in joint ventures and associated enterprises.
For the long-term equity investment whose subsequent measurement adopts the cost method,
when the additional investment is made, the book value of the long-term equity investment cost is
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increased according to the fair value of the cost amount paid by the additional investment and the
relevant transaction expenses. The cash dividends or profits declared to be distributed by the
investee shall be recognized as the current investment income according to the amount that
should be enjoyed.
For the long-term equity investment with equity method for subsequent measurement, the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee,
the net profit and loss of the investee shall be calculated based on the fair value of the identifiable
assets of the investee at the time of obtaining the investment, in accordance with the accounting
policies and accounting period of the company, and offset the internal transaction profit and loss
between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.
For disposal of long-term equity investment, the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment
accounted by equity method, other comprehensive income accounted by the original equity
method shall be accounted on the same basis as the investee's direct disposal of relevant assets or
liabilities when the equity method is terminated, and the owner's equity shall be recognized due to
other changes in owner's equity of the investee except net profit and loss, other comprehensive
income and profit distribution When the equity method is terminated, all of them shall be
transferred into the current investment income.
In case of loss of joint control or significant influence on the investee due to the disposal of part
of equity investment, the remaining equity after disposal shall be accounted according to the
relevant provisions of the recognition and measurement standards of financial instruments, and
the difference between the fair value and the book value of the remaining equity on the date of
loss of joint control or significant influence shall be included in the current profits and losses.
When the equity method is terminated, the other comprehensive income of the original equity
investment recognized as a result of its accounting with the equity method shall be handled on the
same basis as the investee's direct disposal of the relevant assets or liabilities and carried forward
in proportion. The owner's equity recognized as a result of the changes in the owner's equity of
the investee other than net profit and loss, other comprehensive income and profit distribution
shall be carried forward in proportion Transfer to current investment income.
If the control over the investee is lost due to the disposal of part of the long-term equity
investment, and the residual equity after disposal can jointly control or exert significant influence
on the investee, it shall be accounted according to the equity method, and the difference between
the book value of the disposal equity and the disposal consideration shall be included in the
investment income, and the residual equity shall be regarded as adjusted by the equity method
when it is obtained If the residual equity cannot exercise joint control or exert significant
influence on the investee, the accounting treatment shall be carried out according to the relevant
provisions of the recognition and measurement standards of financial instruments. The difference
between the book value of the disposal equity and the disposal consideration shall be included in
the investment income, and the difference between the fair value and the book value of the
residual equity on the day of losing control shall be included in the current profits and losses.
If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction, accounting treatment shall be carried out for each transaction separately. If it
is a "package deal", each transaction will be treated as a transaction of disposal of subsidiaries
and loss of control. However, before the loss of control, the difference between the disposal price
of each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income, and when the control is lost,
it will be transferred to the current account of loss of control Period profit and loss
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21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Company include the right to use any land which has
already been rented; the right to use any land which is held and prepared for transfer after
appreciation; and the right to use any building which has already been rented. In addition, if the
board of directors (or similar organizations) makes a written resolution to use the vacant buildings
held by the company for operating lease and the holding intention will not change in a short time,
they will also be listed as investment real estate.
The initial measurement of the investment property shall be made at its cost. Subsequent
expenditures incurred for an investment property is included in the cost of the investment
property when it is probable that economic benefits associated with the investment property will
flow to the Company and the cost can be reliably measured, otherwise the expenditure is
recognized in profit or loss in the period in which they are incurred.
The Company shall make a follow-up measurement to the investment property by employing the
cost pattern on the date of the balance sheet. An accrual depreciation or amortization shall be
made for the investment property in the light of the accounting policies of the use right of
buildings or lands.
For details of impairment test method and withdrawal method of impairment provision of
investment property, please refer to Note IV. 26. “Long-term assets impairment”.
The company's investment real estate adopts the average life method for depreciation or
amortization. The expected service life, net residual value rate and annual depreciation
(amortization) rate of all kinds of investment real estate shall refer to the depreciation policy of
buildings in fixed assets and the amortization policy of land use right in intangible assets..When
owner-occupied real estate or inventories are changed into investment property or investment
property is changed into owner-occupied real estate, of which book value prior to the change shall
be the entry value after the change.
When an investment property is changed to an owner-occupied real estate, it would be transferred
to fixed assets or intangible assets at the date of such change. When an owner-occupied real estate
is changed to be held to earn rental or for capital appreciation, the fixed asset or intangible asset is
transferred to investment property at the date of such change. If the fixed asset or intangible asset
is changed into investment property measured by adopting the cost pattern, whose book value
prior to the change shall be the entry value after the change; if the fixed asset or intangible asset is
changed into investment property measured by adopting the fair value pattern, whose fair value
on the date of such change shall be the entry value after the change
An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The amount of proceeds on sale, transfer, retirement or damage of an investment property less its
carrying amount and related taxes and expenses is recognized in profit or loss in the period in
which it is incurred.
22. Fixed Assets
The Company’s fixed assets are tangible assets held for the production of goods, provision of
services, rental or operation management and have a useful life of more than one year.
Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Company and their cost can be measured reliably. The
Company’s fixed assets include buildings and constructions, machinery and equipment, electronic
equipment, transportation equipment, and other equipment.
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The Company depreciates all fixed assets by straight-line method, except for fully depreciated
fixed assets that continue to be used and land that is separately valued. The categorized
depreciable lives, estimated net salvage rates and depreciation rates of the Company’s fixed assets
are as follows.
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
Housing and Straight-line
20-40 5-10.00 2.25-4.75
1 building depreciation
Machinery Straight-line
5-10 5-10.00 9.00-19.00
2 equipment depreciation
Electronic Straight-line
3-5 5-10.00 18.00-31.67
3 equipment depreciation
Transportation Straight-line
3-5 5-10.00 18.00-31.67
4 vehicle depreciation
Straight-line
Other equipment 5 5-10.00 18.00-19.00
5 depreciation
The estimated useful life, estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.
23. Construction in Progress
On the date when the construction in progress reaches its intended useable state, fixed assets are
carried forward at the estimated value based on the project budget, cost or actual cost of the
project, etc. Depreciation starts from the following month, and the difference in the original value
of fixed assets is adjusted after the completion of the final accounting procedures.
24. Borrowing Costs
For incurred borrowing costs, which can be directly attributed to fixed assets, investment real
estate and inventory that need more than one year of purchasing, construction or production
activities to reach the preset usable or sellable status, shall be capitalized when the asset
expenditure has occurred, the borrowing costs have occurred, and the purchasing, construction or
production activities necessary for the asset to reach the preset usable or sellable status have
begun; When the acquisition, construction or production of assets that meet the capitalization
conditions reach the intended usable or sellable status, capitalization is stopped, and the
borrowing costs incurred thereafter are included in the profits and losses of the current period. If
there is an abnormal interruption in the acquisition, construction or production of assets that meet
the capitalization conditions and the interruption lasts for more than 3 consecutive months, the
capitalization of borrowing costs will be suspended until the acquisition, construction or
production of assets starts again.
The to-be-capitalized amount of interests shall be determined in light of the actual interests
incurred of the specially borrowed loan at the present period minus the income of interests earned
on the unused borrowing loans as a deposit in the bank or as a temporary investment; the
enterprise shall calculate and determine the to-be-capitalized amount on the general borrowing by
multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing
used. The capitalization rate shall be calculated and determined in light of the weighted average
interest rate of the general borrowing.
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25. Intangible Assets
The Company’s intangible assets include land use rights, patented technology and
non-proprietary technology, which are measured at actual cost at the time of acquisition.
Acquired intangible assets are stated at actual cost based on the actual price paid and related other
expenses. The actual cost of intangible assets invested by investors is determined at the value
agreed in the investment contract or agreement, but if the agreed value in the contract or
agreement is not fair, the actual cost is determined at fair value. Intangible assets, such as patents,
acquired in a merger not under common control but owned by the acquiree but not recognized in
its financial statements, are recognized as intangible assets at fair value at the time of initial
recognition of the acquiree’s assets.
Land use rights are amortized equally over the years from the commencement date of the grant;
intangible assets such as software and patents are amortized equally over the shortest of the
estimated useful life, the contractual beneficiary life and the effective life prescribed by law. The
amortization amount is charged to the cost of the related assets and current profit or loss
according to their beneficiaries. The estimated useful life and amortization method of intangible
assets with finite useful lives are reviewed at the end of each year. Accounting estimation
methods are used when changes are required.
The main research and development projects of the Company include the performance
improvement project of Mini & Micro LED.
(1) Specific criteria for dividing the research phase and development phase
“Research” means an original and planned investigation to acquire and understand new scientific
or technical knowledge.
“Development” means the application of research results or other knowledge to one or more plans
or designs to produce new or substantially improved materials, devices, products, or to obtain
new processes, etc., prior to commercial production or use.
Expenses for the research phase are charged to current profit or loss as incurred.
(2) Specific criteria for capitalization of development stage expenditures
Expenditures in the development stage are capitalized when the following conditions are met.
① It is feasible technically to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally;
④ It is able to finish the development of the intangible assets, and able to use or sell the
intangible assets, with the support of sufficient technologies, financial resources and other
resources;
⑤ The development expenditures of the intangible assets can be reliably measured.
26. Impairment of Long-term Assets
For non-current financial Assets of fixed Assets, projects under construction, intangible Assets
with limited service life, investing real estate with cost model, long-term equity investment of
subsidiaries, cooperative enterprises and joint ventures, the Company should judge whether
decrease in value exists on the date of balance sheet. Recoverable amounts should be tested for
decrease in value if it exists. Other intangible Assets of reputation and uncertain service life and
other non-accessible intangible assets should be tested for decrease in value no matter whether it
exists.
If the recoverable amount is less than carrying value in impairment test results, the provision for
impairment of differences should include in impairment loss. Recoverable amounts would be the
higher of net value of asset fair value deducting disposal charges or present value of predicted
cash flow. Asset fair value should be determined according to negotiated sales price of fair trade.
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If no sales agreement exists but with asset active market, fair value should be determined
according to the Buyer’s price of the asset. If no sales agreement or asset active market exists,
asset fair value could be acquired on the basis of best information available. Disposal expenses
include legal fees, taxes, cartage or other direct expenses of merchantable Assets related to asset
disposal. Present value of predicted asset cash flow should be determined by the proper discount
rate according to Assets in service and predicted cash flow of final disposal. Asset depreciation
reserves should be calculated on the basis of single Assets. If it is difficult to predict the
recoverable amounts for single Assets, recoverable amounts should be determined according to
the belonging asset group. Asset group is the minimum asset combination producing cash flow
independently.
In impairment test, carrying value of the business reputation in financial report should be shared
to beneficial asset group and asset group combination in collaboration of business merger. It is
shown in the test that if recoverable amounts of shared business reputation asset group or asset
group combination are lower than book value, it should determine the impairment loss.
Impairment loss amount should firstly be deducted and shared to the carrying value of business
reputation of asset group or asset group combination, then deduct carrying value of all assets
according to proportions of other carrying value of above assets in asset group or asset group
combination except business reputation.
After the asset impairment loss is determined, recoverable value amounts would not be returned
in future.
27. Long-term Deferred Expenses
The Long-term deferred expenses of the Company including renovation cost, mold cost and so on
shall be amortized evenly during the benefit period. If these long-term deferred expenses cannot
benefit the future accounting period, the amortized value of this item that has not been amortized
shall be transferred to the current profit and loss.
28. Contract Liabilities
Liabilities of contracts refer to the Company's obligation to transfer goods to customers due to the
consideration received or receivable from customers. Before the transfers, if the customer has
paid the consideration or if the Company has obtained the right to unconditionally collect the
contract consideration, the liabilities of contracts shall be recognized based on the amount
received or receivable at the earlier point between the actual payment by the customer and the
payment due.
29. Employee Compensation
Salaries of staff of the Company include short-term salary, post-employment benefits, termination
compensation, and other long-term benefits.
Short-term salary mainly includes wages, bonuses, allowances and subsidies, as well as employee
benefits, medical insurance, maternity insurance, employment injury insurance, housing provident
fund, labor union expenses, and staff education expenses, and non-monetary benefits. During the
accounting period when the employees provide services, the actual short-term compensation is
recognised as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.
The post-employment benefits mainly include the basic endowment insurance, etc. They are
divided into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Company. According to the defined contribution plan, the deposit
paid to a separate entity in exchange for the services provided by the employees during the
accounting period on the balance sheet date is recognized as liabilities, and shall be included in
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the current profit and loss or the cost of related assets according to the beneficiary. If the
Company has a defined benefit plan, the specific accounting method should be explained.
When terminating labour relations before expiration of contract, or layoffs with compensations,
and the Company cannot terminate the labour relations unilaterally or reduce the demission
welfare, remuneration and liabilities produced from the demission welfare should be determined
and included in current profits and losses when determining the costs of demission welfare and
recombination. However, demission welfare not fully paid within 12 months after annual
Reporting Period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above
dismiss ion welfare. The Company would recorded the salary and the social security insurance
fees paid and so on from the employee’s service termination date to normal retirement date into
current profits and losses (dismission welfare) under the condition that they meet the recognition
conditions of estimated liabilities.
The other long-term welfare that the Company offers to the staffs, if met with the setting drawing
plan, should be accounting disposed according to the setting drawing plan, while the rest should
be disposed according to the setting revenue plan.
30. Provisions
The Company should recognize the related obligation as a provision for liability when the
obligation meets the following conditions: (1) That obligation is a present obligation of the
enterprise; (2) It is probable that an outflow of economic benefits from the enterprise will be
required to settle the obligation; (3) A reliable estimate can be made of the amount of the
obligation.
On the balance sheet date, an enterprise shall take into full consideration of the risks, uncertainty,
time value of money, and other factors pertinent to the Contingencies to measure the provisions in
accordance with the best estimate of the necessary expenses for the performance of the current
obligation.
When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides, the
amount recognized for the reimbursement should not exceed the carrying value of the estimated
liabilities.
31. Principles of Revenue Recognition and Measurement Method
The revenue of the Company mainly consists of the income from main business and the income
from other businesses.
(1)Revenue recognition principle
The company has fulfilled the performance obligations in the contract, that is, when the customer
obtains control of the relevant goods or services, revenue is recognized. Obtaining control over
related goods or services means being able to lead the use of the goods or the provision of such
services and obtain almost all of the economic benefits from it.
On the starting date of the contract, the company evaluates the contract, identifies each individual
performance obligation contained in the contract, and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time.
When one of the following conditions is met, it is a performance obligation within a certain
period of time, otherwise, it is a performance obligation at a certain point in time:
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①The customer obtains and consumes the economic benefits brought by the company's
performance at the same time the company performs the contract.
②The customer can control the products under construction during the performance of the
company.
③The goods produced during the performance of the company have irreplaceable uses, and the
company has the right to collect payments for the cumulative performance of the contract during
the entire contract period.
For performance obligations performed within a certain period of time, the company recognizes
revenue according to the performance progress during that period. When the performance
progress cannot be reasonably determined, if the cost incurred by the company is expected to be
compensated, the revenue shall be recognized according to the amount of the cost incurred until
the performance progress can be reasonably determined.
For performance obligations performed at a certain point in time, the company recognizes
revenue at the point when the customer obtains control of the relevant goods or services. When
judging whether a customer has obtained control of goods or services, the company considers the
following signs:
①The Company enjoys the current right to receive payment for the goods or services.
②The Company has transferred the legal ownership of the product to the customer.
③The Company has transferred the goods in kind to the customer.
④The Company has transferred the main risks and rewards of the ownership of the product to the
customer.
⑤The customer has accepted the goods or services.
The company has transferred goods or services to customers and the right to receive consideration
is listed as contract assets, and contract assets are devalued on the basis of expected credit losses.
The company's unconditional right to collect consideration from customers is listed as receivables.
The company’s obligation to transfer goods or services to customers due to the consideration
received from customers is listed as contract liabilities.
(2) Principles of income measurement
① If the contract contains two or more performance obligations, at the beginning of the contract,
the company will allocate the transaction price to each individual performance obligation based
on the relative proportion of the stand-alone selling price of the goods or services promised by
each individual performance obligation. Revenue is measured at the transaction price of each
individual performance obligation.
②The transaction price is the amount of consideration that the company expects to be entitled to
receive due to the transfer of goods or services to customers, excluding payments collected on
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behalf of third parties and payments expected to be returned to customers. The transaction price
confirmed by the company does not exceed the amount at which the accumulated confirmed
income will most likely not undergo a significant reversal when the relevant uncertainty is
eliminated. It is expected that the money returned to the customer will not be included in the
transaction price as a liability.
③If there is variable consideration in the contract, such as cash discounts and price guarantees in
part of the contract between the company and its customers, the company determines the best
estimate of the variable consideration according to the expected value or the most likely amount,
but includes the variable The transaction price of the consideration shall not exceed the amount at
which the accumulated confirmed income is unlikely to be reversed significantly when the
relevant uncertainty is eliminated.
④For the consideration payable to customers, the company offsets the transaction price from the
consideration payable to customers, and offsets the current income at the time when the relevant
income is recognized and the payment (or promised to pay) the customer consideration is later,
unless the consideration payable is for Obtain other clearly distinguishable products from
customers.
⑤For sales with a sales return clause, when the customer obtains control of the relevant product,
the company recognizes revenue based on the amount of consideration expected to be received
due to the transfer of the product to the customer, and the expected return due to the sales return
is recognized as an estimated liability ; At the same time, according to the expected book value of
the returned goods at the time of transfer, the balance after deducting the estimated cost of
recovering the goods (including the value impairment of the returned goods) is recognized as an
asset, that is, the return cost receivable, according to the transferred goods The book value at the
time of the transfer, deducting the net carry-over cost of the aforementioned asset cost. On each
balance sheet date, the company re-estimates the future sales returns and re-measures the
aforementioned assets and liabilities.
⑥ If there is a significant financing component in the contract, the company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
goods or services. Using the discount rate that discounts the nominal amount of the contract
consideration into the current commodity price, the difference between the determined transaction
price and the amount of the consideration promised in the contract is amortized by the actual
interest method during the contract period. On the starting date of the contract, the company
expects that the time between the customer's acquisition of control of the goods or services and
the customer's payment of the price will not exceed one year, regardless of the significant
financing components in the contract.
⑦According to contractual agreements, legal provisions, etc., the company provides quality
assurance for the products sold and the assets built. For guarantee-type quality assurance to assure
customers that the goods sold meet the established standards, the company conducts accounting
treatment in accordance with "contingent events-estimated liabilities". For the service quality
assurance that provides a separate service in order to assure customers that the goods sold meet
the established standards, the company regards it as a single performance obligation, based on the
stand-alone selling price of the quality assurance of goods and services. In a relative proportion,
part of the transaction price is allocated to service quality assurance, and revenue is recognized
when the customer obtains control of the service. When assessing whether the quality assurance
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provides a separate service in addition to ensuring that the products sold meet the established
standards, the company considers whether the quality assurance is a legal requirement, the quality
assurance period, and the nature of the company's commitment to perform the tasks.
⑧ When the construction contract between the company and the customer is changed: ①If the
contract change adds clearly distinguishable construction services and contract prices, and the
new contract price reflects the stand-alone selling price of the new construction services, the
company will The contract change shall be treated as a separate contract for accounting treatment;
②If the contract change does not fall into the above-mentioned circumstance ①, and there is a
clear distinction between the construction services that have been transferred and the construction
services that have not been transferred on the date of the contract change, the company Treat it as
the termination of the original contract, and at the same time, merge the unfulfilled part of the
original contract and the changed part of the contract into a new contract for accounting treatment;
③If the contract change does not fall into the above situation ①, and the construction service has
been transferred on the date of contract change There is no clear distinction between the
construction service and the untransferred construction service. The company accounts for the
changed part of the contract as a component of the original contract. The resulting impact on the
recognized revenue will be adjusted on the date of contract change.
(3) Specific methods of revenue recognition
① Revenue recognized on time
The company's sales of household appliances, electronic components, etc., belong to the
performance obligation performed at a certain point in time.
Recognition conditions for income from domestic sales of goods and overseas direct sales of
goods: The company has delivered the product to the customer in accordance with the contract
and the customer has received the product, the payment has been recovered or the receipt of
payment has been obtained, and the relevant economic benefits are likely to flow in. The main
risks and rewards have been transferred, and the legal ownership of the goods has been
transferred.
Conditions for confirming the income of exported goods: The company has declared the products
for export according to the contract, obtained the bill of lading, and delivered the goods to the
carrier entrusted by the purchaser. The payment has been recovered or the receipt of payment has
been obtained and relevant economic benefits are likely to flow in. The main risks and rewards of
commodity ownership have been transferred, and the legal ownership of commodities has been
transferred.
②Income confirmed according to the performance progress
The company's business contracts with customers for project construction, online advertising,
operating leases, etc. are performance obligations performed within a certain period of time, and
revenue is recognized according to the progress of the performance.
32. Government Grants
The government grants of the Company are divided into asset-based grants related to and
income-based grants. Asset-based grants refer to the government grants for long-term assets
obtained by the purchase, construction, and other ways. Income-based grants refer to other grants.
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If the beneficiaries are not specified in government documents, the Company will make the
distinction according to the aforesaid principle. Beneficiaries which are difficult to categorize
shall be classified as an income-based government grant as a whole.
Current elements of government grants shall be measured based on the amount actually received.
Those shall be measured according to the amount receivable are grants paid according to a fixed
quota standard, or funds that meet the relevant conditions stipulated by the financial support
policy with conclusive evidence at the end of the year and which are expected as the financial
support. Non-monetary elements of the government grants shall be measured at fair value. Those
whose fair value cannot be obtained reliably shall be measured at its nominal amount (RMB1).
Asset-based grants shall be used to offset the carrying value of related assets or presented as
deferred income, and shall, over the life of the related asset, be included in the current profits and
losses by the equal amortization method.
If the related asset is sold, transferred, scrapped, or damaged before the end of its useful life, its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.
Income-based grants that are used to compensate related costs or losses in subsequent periods
shall be deemed as deferred income and shall be included in the current profits and losses during
the period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.
Government grants not related to routine activities shall be included in non-operating income and
expenditure.
The Company obtains interest grants on policy-related concessional loans in two different ways:
the interest subsidy funds are allocated by the government either to the lending bank or directly to
the Company. The respective accounting treatment is carried out as follows:
(1) Where the government allocates the funds to the lending bank, and the bank provides a loan to
the Company at a policy-related preferential interest rate, the actual amount of the loan received
is taken as the entry value, and the borrowing costs are calculated based on the loan principal and
the policy-related preferential interest rate. (Alternatively, the fair value of the loan is taken as the
entry value, and the borrowing costs are calculated using the effective interest rate method. The
difference between the actual amount received and the fair value is recognized as deferred income,
which is amortized using the effective interest rate method during the loan term to offset
borrowing costs);
(2) Where the government allocates the funds directly to the Company, the grants are offset
against borrowing costs.
Where the government grants that the Company has recognized in accounting need to be returned,
the accounting treatment in the current period is carried out as follows:
1) If the book value of an asset is offset on initial recognition, the book value will be adjusted;
2) If there is deferred income, the book balance of the deferred income will be offset, and the
excess will be included in profit or loss in the current period;
3) Under any other circumstances, the grants will be included in profit or loss in the current
period.
33. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Company's deferred tax assets and deferred tax liabilities are calculated and recognized based
on the difference (temporary difference) between the tax base and book value of the assets and
liabilities. In the case of deductible losses that can be deducted from taxable income in
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subsequent years in accordance with the provisions of the tax laws, the corresponding deferred
income tax assets are recognized. In the case of temporary differences arising from the initial
recognition of goodwill, the corresponding deferred income tax liabilities are not recognized.
With respect to temporary differences arising from the initial recognition of an asset or liability in
a transaction which isn’t a business combination and which affects neither accounting profit nor
taxable income (or deductible losses), the corresponding deferred income tax assets and deferred
income tax liabilities are not recognized. On the balance sheet date, the deferred income tax assets
and deferred income tax liabilities are measured at the tax rate applicable to the period during
which the assets are expected to be recovered or the liabilities are expected to be settled.
The Company recognizes deferred income tax assets to the extent of the taxable income which it
is most likely to obtain and which can be deducted from deductible temporary differences,
deductible losses and tax credits.
34. Leasing
The term "lease" refers to a contract whereby the lessor transfers the right of use regarding the
leased asset(s) to the lessee within a specified time in exchange for consideration.
The Company will, on the effectiveness date of a contract, assess whether the contract is a lease
or includes any lease. The Company will not reassess whether a contract is a lease or includes any
lease, unless there is any alteration of the terms or conditions of the contract.
(1) The Company's recording of the lease business as the lessee
1) Lease splitting
If a contract contains both lease and non-lease parts (one or more parts), the Company will split
the lease and non-lease parts, and split contract consideration according to the relative proportion
between the sum of the prices of all the lease parts and that of the prices of all the non-lease parts.
2) Right-of-use assets
The Company will recognize lease-related right-of-use assets on the inception date of the lease
term, excluding short-term and low-value asset leases. The term "lease inception date" refers to
the start date on which the lessor provides the leased asset(s) to make it/them available to the
Company. The Company initially measures the right-of-use assets at cost. The cost includes:
a) Initial measurement amount of lease obligation;
b) Lease payments made on or before the lease inception date (if a lease incentive exists, deduct
the amount related to the lease incentive already taken);
c) Initial direct expenses incurred by the Company;
d) Costs expected to be incurred by the Company for dismantling and removing the leased
asset(s), restoring the premises where the leased asset(s) is/are located, or restoring the leased
asset(s) to the status agreed in the leasing clauses (excluding costs incurred for inventory
production)
The Company depreciates the right-of-use assets in accordance with relevant depreciation
provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. If it is
reasonably certain that the ownership of the leased asset(s) will be obtained at the end of the lease
term, the Company will depreciate the right-of-use assets over the remaining service life of the
leased asset(s). If it is not reasonably certain that the ownership of the leasehold property will be
obtained at the end of the lease term, the Company will depreciate the leased asset(s) over the
lease term or the remaining service life, whichever is shorter.
The Company will determine the impairment of the right-of-use assets and conduct accounting
treatment of the impairment losses already identified in accordance with relevant provisions of
the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.
3) Lease obligation
The Company initially measures the lease obligation on the inception date of the lease term at the
present value of the lease payments outstanding on the same date, excluding short-term and
low-value asset leases. When calculating the present value of the lease payments, the Company
uses the interest rate implicit in lease as the rate of discount. If the Company fails to determine the
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interest rate implicit in lease, its incremental lending rate will be used as the rate of discount.
The term "lease payments" refers to the payments made by the Company to the lessor in terms of
the use of the leased asset(s) within the lease term, including:
a) Fixed lease payments and substantial fixed lease payments (if a lease incentive exists, deduct
the amount related to the lease incentive);
b) Variable lease payments that depend on indexation or ratio;
c) Exercise price of the purchase option reasonably determined by the Company to exercise;
d) Payments required to be made for exercising the option to terminate the lease if the lease term
reflects that the Company will exercise such an option;
e) Payments estimated to be made in line with the secured residual value provided by the
Company.
The variable lease payments that depend on indexation or ratio shall, in times of initial
measurement, be determined according to the indexation or ratio on the inception date of the lease
term. Variable lease payments that are not covered in the measurement of the lease obligations are
included in profit or loss for the current period or the cost of relevant assets when actually
incurred.
The Group will, after the inception date of the lease term, calculate the interest expenses of the
lease obligations during each period of the lease term at a fixed periodic interest rate, and include
them in profit or loss for the current period or the cost of relevant assets.
4) Short-term and low-value asset leases
The Company selects not to recognize the right-of-use assets and lease obligations for the
short-term and low-value asset leases of houses, buildings, machinery equipment, transportation
tools, office equipment and other equipment. A short-term lease refers to a lease whose lease term
does not exceed 12 months from the inception date thereof, typically not involving the purchase
option. A low-value asset lease refers to a lease in which the value of a single leased asset is
typically lower than other assets if it is a new asset. The Company includes the payments of
short-term and low-value asset leases incurred during each period of the lease term in the profit or
loss for the current period or the cost of relevant assets by the straight-line method.
(2) The Company's recording of the lease business as the lessor
1) The Company's recording of the lease business as the lessor
The Company recognizes the receipts of the operating lease incurred during each period of the
lease term as rentals by the straight-line method. The Company capitalizes the initial direct costs
related to the operating lease upon incurrence thereof and, within the lease term, apportions and
includes such costs in the current profit or loss on the basis same as the recognition of rentals.
2) The Company's recording of the finance lease business as the lessor
On the inception date of the lease term, the Company records the sum of the minimum lease
receipts and the initial direct costs as the entry value of the finance lease receivables, while
recording the unguaranteed residual value, and it recognizes the difference between the sum of
the minimum lease receipts, the initial direct costs and the unguaranteed residual value and that of
their present values as unrealized financing income. The balance of the finance lease receivables
upon deduction of the unrealized financing income is respectively listed in the long-term claims
and long-term claims due within one year.
During the lease term, the unrealized financing income is calculated and recognized as the
financing income for the current period by the effective interest rate method. The contingent
rentals are included in the profit or loss for the current period upon actual incurrence thereof.
35. Changes in Main Accounting Policies and Estimates
(1) Changes of accounting policies
In 2018, the Ministry of Finance issued the revised "Accounting Standards for Business
Enterprises No. 21-Leases" (referred to as the "New Lease Standards"). The Company starts to
implement the above newly revised standards since 1 January 2021. In accordance with the link
up provision, no adjustment was made to information of comparative period, and the Company
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retroactively adjusted the retained earnings of period-begin and amount of other relevant items in
financial statements based on the difference between the current standards and the new standards
on the first execution date.
The new lease standards have improved the definition of lease, added such contents as lease
identification, separation and combination, canceled the classification of operating lease and finance
lease by the lessor, and proposed such a requirement that the right-of-use assets and lease obligations
shall, on the lease inception date, be recognized and respectively included in depreciation and interest
expenses for all leases (excluding short-term and low-value asset leases); in addition, they have also
improved the lessee's subsequent measurement of leases, while adding such contents as accounting
treatment in case of option reassessment and lease change as well as relevant disclosure requirements.
These new standards have also enriched the contents to be disclosed by the lessor. According to the
provisions of the aforesaid new lease standards, for a contract already existing prior to the initial
exercise date, the Company will decide not to reassess whether it is a lease or includes any lease on
the initial inception date.
For operating leases in which any asset leased by the Company as the lessee prior to the initial
exercise date is a low-value asset, and for operating license to be completed within 12 months, the
Company will treat them in a simplified way without recognizing the right-of-use assets or lease
obligations.
According to the new lease standards, it is unnecessary for the Company as the lessor to adjust
leases according to the bridging provisions, and the accounting treatment of leases shall be conducted
according to these new standards as of the initial exercise date.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any
New Standards Governing Leases since 2021
1）Consolidated balance sheet:
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Prepayments 1,183,270,543.41 1,182,471,715.24 -798,828.17
Other receivables 2,145,736,640.60 2,145,209,803.70 -526,836.90
Total current assets 25,138,685,951.57 25,137,360,286.50 -1,325,665.07
Non-current assets:
Right-of-use assets 103,838,847.54 103,838,847.54
Total non-current 24,737,581,542.04 24,841,420,389.58 103,838,847.54
assets
Total assets 49,876,267,493.61 49,978,780,676.08 102,513,182.47
Current liabilities:
Other payables 1,999,430,899.69 1,991,555,887.10 -7,875,012.59
Current portion of
376,896,566.29 425,552,664.43 48,656,098.14
non-current liabilities
Total current liabilities 26,979,203,650.51 27,019,984,736.06 40,781,085.55
Non-current liabilities:
Lease liabilities 61,732,096.92 61,732,096.92
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Item 31 December 2020 1 January 2021 Adjustment
Total non-current 12,176,168,718.46 12,237,900,815.38 61,732,096.92
liabilities
Total liabilities 39,155,372,368.97 39,257,885,551.44 102,513,182.47
Total liabilities and 49,876,267,493.61 49,978,780,676.08 102,513,182.47
shareholders’ equity
2）Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Total current assets 21,416,968,747.54 21,416,968,747.54
Non-current assets:
Right-of-use assets 6,321,843.42 6,321,843.42
Total non-current 11,111,803,009.84 11,118,124,853.26 6,321,843.42
assets
Total assets 32,528,771,757.38 32,535,093,600.80 6,321,843.42
Current liabilities:
Current portion of
5,867,425.49 8,297,306.42 2,429,880.93
non-current liabilities
Total current liabilities 18,371,248,287.48 18,373,678,168.41 2,429,880.93
Non-current liabilities:
Lease liabilities 3,891,962.49 3,891,962.49
Total non-current 8,059,740,136.21 8,063,632,098.70 3,891,962.49
liabilities
Total liabilities 26,430,988,423.69 26,437,310,267.11 6,321,843.42
Total liabilities and 32,528,771,757.38 32,535,093,600.80 6,321,843.42
shareholders’ equity
The following are major changes and influences brought to the Company by the execution of new
lease standards:
On 1 January 2021, the Company recognized lease obligations (including those due within one
year) amounting to RMB110,388,195.06, and right-of-use assets amounting to
RMB103,838,847.54. For operating leases prior to the initial exercise date, the Company now
measures the lease obligations thereof according to the present value discounted at the
incremental borrowing rate (ranging from 4.35% to 4.90%) on the initial exercise date.
Due to the execution of new lease standards, the Company has the rentals payable in advance that
are previously included in the prepayments and other receivables and the unpaid rentals payable
that are previously included in other receivables reclassified into the right-of-use assets.
V. Taxation
1. Main Taxes and Tax Rate
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at the tax
rate and paid the VAT by the amount
VAT 1%, 3%, 5%, 6%, 9%, 13%
after deducting the deductible
withholding VAT at current period,
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Category of taxes Basis Specific situation of the taxes rate
of which the VAT applicable to easy
collection won’t belong to the
deductible withholding VAT.
Paid at 5%: Dongguan Konka, XingDa HongYe,
Xinfeng Microcrystalline, Boluo Konka Precision,
Boluo Konka, Dongguan Packing, Ningbo
Kanghanrui, Jiangsu Konka Smart, Shanghai Konka,
Chengdu Anren, Binzhou Beihai Jingmai, Binzhou
Econ Zhongke, Suining Pengxi Kangrun, Dayi
Urban maintenance Kangrun Water, Lushan Kangrun Environmental,
The circulating tax actually paid
and construction tax Funan Kangrun Water, Subei Kangrun Water,
Mengcheng Kangrun, Tingyuan Environmental, Yibin
Kangrun, Yibin Kangrun Medical, Yibin Kangrun
Environmental Protection. Paid at 7%: Konka Capital.
Paid at 1%: Jiangxi Konka, Jiangxi High Transparent
Substrate, Jiangkang (Shanghai) Technology. Paid at
7%: other subsidiaries.
Education surtax The circulating tax actually paid 3%
Local education surtax The circulating tax actually paid 2%
Enterprise income tax Taxable income 25%/2.Tax Preference and Approved Documents
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Electronics Technology, Anhui Konka, Anhui
Tongchuang, Econ Technology, Wankaida, Jiangxi
Konka, Xinfeng Microcrystalline, Jiangxi High 15.00%
Transparent Substrate, Sichuan Konka, Boluo Konka
Precision, Chongqing Kangxingrui
Hong Kong Konka, Konka Electrical Appliances
International Trading, Jiali International, Kangjietong,
Jiaxin Technology, Jiaxin Technology, Konka 16.50%
Electrical Appliances Investment, Konka SmartTech,
Konka Mobility, Kowin Memory (Hong Kong)
Chain Kingdom Memory Technologies 8.25%/16.50%
Konka Europe 15.00%
Kanghao Technology 22.50%
Konka North America 21.00%
The Company as the Parent and other subsidiaries 25.00%
Note: According to regulations of Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Administration of Taxation, resident enterprises without business
establishment or places of legal persons should be tax payment enterprises with the administrative
measures of income tax of “unified computing, level-to-level administration, local prepayment,
liquidation summary, and finance transfer”. It came into force from 1 January 2008. According to
the above methods, the Company’s sales branch companies in each area will hand in the corporate
income taxes in advance from 1 January 2008 and will be final settled uniformly by the Company
at the year-end.
2. Tax Preference and Approved Documents
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Konka Group Co., Ltd. Interim Report 2021
(1) According to Caishui [2019] No. 13: Notice on the implementation of the inclusive tax
reduction and exemption policy for small and micro enterprises, from 1 January 2019 to 31
December 2021, the annual taxable income of small and profitable enterprises is not The portion
exceeding RMB1 million will be reduced to 25% of the taxable income, and the corporate income
tax will be paid at the rate of 20%; the portion of the annual taxable income exceeding RMB1
million but not exceeding RMB3 million will be reduced by 50% Include the taxable income and
pay corporate income tax at a rate of 20%.
(2) On 9 September 2019, Anhui Konka, the subsidiary of the Company, obtained a certificate of
high-tech enterprise jointly issued by Anhui Science and Technology Department, Anhui
Provincial Department of Finance and Anhui Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR201934000966 and is valid for three years. According
to relevant tax regulations, Anhui Konka shall enjoy relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2019 to 2021 and pay the enterprise
income tax at a preferential tax rate of 15%.
(3) On 16 September 2019, Xinfeng Microcrystalline, the subsidiary of the Company, obtained a
high-tech enterprise certificate jointly issued by Jiangxi Science and Technology Department,
Jiangxi Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State
Administration of Taxation. The certificate number is GR201936000744 and is valid for three
years. According to relevant tax regulations, Xinfeng Microcrystalline shall enjoy relevant
preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021
and pay the enterprise income tax at a preferential tax rate of 15%.
(4) On 20 November 2019, Anhui Tongchuang, the subsidiary of the Company, obtained a
high-tech enterprise certificate jointly issued by Anhui Science and Technology Department,
Anhui Provincial Department of Finance and Anhui Provincial Tax Bureau of the State
Administration of Taxation. The certificate number is GR201934001964 and is valid for three
years. According to relevant tax regulations, Anhui Tongchuang shall enjoy relevant preferential
tax policies for high-tech enterprises for three consecutive years from 2019 to 2021 and pay the
enterprise income tax at a preferential tax rate of 15%.
(5) On 28 November 2019, Sichuan Konka, a subsidiary of the Company, obtained a certificate of
high-tech enterprise jointly issued by Sichuan Science and Technology Department, Sichuan
Provincial Department of Finance and Sichuan Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR201951002096 and is valid for three years. According
to relevant tax regulations, Sichuan Konka shall enjoy relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2019 to 2021 and pay the enterprise
income tax at a preferential tax rate of 15%.
(6) On 2 December 2019, Bokang Precision, a subsidiary of the Company, obtained the high-tech
enterprise certificate jointly issued by the Guangdong Provincial Department of Science and
Technology, the Guangdong Provincial Department of Finance, the Guangdong State Taxation
Bureau, and the Guangdong Local Taxation Bureau. The certificate number is GR201944007820,
valid for three years, according to relevant tax regulations, Bokang Precision has enjoyed relevant
preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021,
and is subject to corporate income tax at a preferential tax rate of 15%.
(7) On 9 December 2019, Electronics Technology, the subsidiary of the Company, obtained a
Certificate of High-tech Enterprise jointly issued by Shenzhen Science and Technology
Department, Shenzhen Provincial Department of Finance and Shenzhen Provincial Tax Bureau of
the State Administration of Taxation. The certificate number is GR201944204287 and is valid for
three years. According to relevant tax regulations, Electronics Technology shall enjoy relevant
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Konka Group Co., Ltd. Interim Report 2021
preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021
and pay the enterprise income tax at a preferential tax rate of 15%.
(8) On 17 August 2020, Econ Technology, a subsidiary of the Company, obtained the High-tech
Enterprise Certificate (certificate No.: GR202037000258) jointly issued by Department of
Science and Technology of Shandong Province, Department of Finance of Shandong Province,
Shandong Provincial Office, SAT, Shandong Local Taxation Bureau with a valid period of three
years. According to the relevant tax regulations, Econ Technology enjoys related tax incentives
for high-tech companies for three consecutive years from 2020 to 2022, and is subject to
corporate income tax at a preferential rate of 15%.
(9) On 14 September 2020, Jiangxi Konka, the subsidiary of the Company, obtained a high-tech
enterprise certificate jointly issued by Jiangxi Science and Technology Department, Jiangxi
Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR202036000802 and is valid for three years. According
to relevant tax regulations, Jiangxi Konka shall enjoy relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2020 to 2022 and pay the enterprise
income tax at a preferential tax rate of 15%.
(10) On 14 September 2020, Jiangxi High Transparent Substrate (formerly known as
“Nano-Grystallized Glass”), the subsidiary of the Company, obtained a high-tech enterprise
certificate jointly issued by Jiangxi Science and Technology Department, Jiangxi Provincial
Department of Finance and Jiangxi Provincial Tax Bureau of the State Administration of
Taxation. The certificate number is GR202036000568 and is valid for three years. According to
relevant tax regulations, Jiangxi High Transparent Substrate shall enjoy relevant preferential tax
policies for high-tech enterprises for three consecutive years from 2020 to 2022 and pay the
enterprise income tax at a preferential tax rate of 15%.
(11) On 11 December 2020, Wankaida, the subsidiary of this Company obtained the high-tech
enterprise certificate (certificate No.: GR202044201940) jointly issued by Shenzhen Technology
Innovation Committee, Finance Committee of Shenzhen Municipality, Shenzhen Taxation
Bureau of SAT with a valid period of three years. According to related taxation regulations,
Wankaida enjoys related taxation preferential policies as a high-tech enterprise from 2020 to 2022
and pays the enterprise income tax as per the preferential tax rate of 15%.
(12) In accordance with the Notice on Tax Policy Issues Involved in the Further Implementation
of the Western Development Strategy (C.S. [2011] No. 58) and the Announcement on Corporate
Income Tax Issues Involved in the Further Implementation of the Western Development Strategy
(Announcement [2012] No. 12 by the State Taxation Administration), an enterprise established in
the western region who is mainly engaged in an industry specified in the Catalogue of
Encouraged Industries in the Western Region and whose main business income accounts for over
70% of its gross income in the current year, is entitled to a reduced corporate income tax rate of
15%. Chongqing Kangxingrui, a subsidiary of the Company, is eligible for this preferential tax
policy.
(13) According to the Notice on Issues Concerning the Promotion of Energy-Saving Service
Industry Development VAT Business Tax and Corporate Income Tax Policy Issued by the
Ministry of Finance and the State Administration of Taxation (Caishui [2010] No. 110) For the
income, the enterprise enjoys the "three exemptions and three halves" preferential treatment of
corporate income tax since the tax year in which the first production and operation income of the
project is obtained. Binhai Sewage, Lairun Holdings and Rushan Econ, subsidiaries of the
Company, enjoy this tax incentive. Binhai Sewage and Lairun Holdings will be exempt from
corporate income tax from 2017 to 2019, and corporate income tax will be levied at half the 25%
legal tax rate from 2020 to 2022. Rushan Econ will be exempt from corporate income tax from
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Konka Group Co., Ltd. Interim Report 2021
2019 to 2021, and corporate income tax will be levied at half the 25% legal tax rate from 2022 to
2024.
(14) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of
Finance and the State Administration of Taxation, for the VAT general taxpayers who sell their
self-developed and produced software products, the VAT shall be levied at the rate of 13%, and
then the part that the actual tax burden on their VAT exceeds 3 will be implemented with the
policy of immediate withdrawal. The Company’s subsidiaries, Wankaida Technology, Youzhihui
and Electronics Technology all enjoy this preferential policy.
(15) According to the regulations of the Special Catalogue of VAT Concessions for Products and
Labors with Comprehensive Utilization of Resources issued by the Ministry of Finance and the
State Administration of Taxation (Finance and Taxation [2015] No. 78), the wastewater treatment
business operated by Lairun Holdings and Binhai Sewage, subsidiaries of the Company, belongs
to the this catalogue. Then after levied the VAT at the statutory tax rate, it currently carries out
the tax rate of 6% (SAT Announcement [2020] No. 9, the actual tax burden on the wastewater
treatment income tax will be refunded in accordance with the 70% of the actual tax burden, and
the actual tax burden on the renewable water income VAT will be refunded immediately at 50%.
The wastewater treatment business operated by Rushan Econ, subsidiaries of the Company,
belongs to the catalogue. Then after levied the VAT at the statutory tax rate, it currently carries
out the tax rate of 6% (SAT Announcement [2020] No. 9, the actual tax burden on the wastewater
treatment income tax will be refunded in accordance with the 70% of the actual tax burden, and
the actual tax burden on the renewable water income VAT will be refunded immediately at 50%.
(16) According to the Announcement on the Applicable Policies for the Settlement and Payment
of Corporate Income Tax of Integrated Circuit Design Enterprises and Software Enterprises in
2019 (C.S. [2020] No. 29), integrated circuit design enterprises and software enterprises that are
legally established within the territory of China and meet certain requirements, are entitled to a
period of preferential tax rates starting from the first profitable year before 31 December 2019.
They are exempt from corporate income tax in the first and second years, and for the next three
years till the expiration of this period, the corporate income tax rate is half of the statutory rate of
25%. The Company's subsidiary Youzhihui enjoys the preferential policies, and a 0% income tax
rate is applicable in 2021.
VI Notes on Major Items in Consolidated Financial Statements of the Company
Unless otherwise noted, the following annotation project (including the main projects, annotation
of the financial statement of the Company), the period-begin refers to 1 January 2021, the
period-end refers to 30 June 2021, this period refers to the period from 1 January 2021 to 30 June
2021 and the last period refers to the period from 1 January 2020 to 30 June 2020. The monetary
unit is renminbi.
1. Monetary Assets
Item Ending balance Beginning balance
Cash on hand 9,534.97 16,052.88
Bank deposits 5,159,975,691.09 4,298,040,060.36
Other monetary assets 648,960,499.91 1,133,474,067.66
Total 5,808,945,725.97 5,431,530,180.90
Of which: total amount deposited
79,359,852.77 202,052,024.94
in overseas
Note: The ending balance of other currency assets is mainly margin deposits, financial
supervision account funds and other deposits subject to usage restrictions. Refer to Note VI-66
Assets with restricted ownership or use right for details.
2. Trading financial assets
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Konka Group Co., Ltd. Interim Report 2021
Item Ending balance Beginning balance
Financial assets at fair value through profit
or loss 618,249,541.66
Of which: debt instrument investment
Equity instrument investment
Structural deposits 618,249,541.66
Financial assets assigned to be measured at
fair value through profit or loss
Of which: debt instrument investment
Hybrid instrument investment
Total 618,249,541.66
3. Notes receivable
(1) Notes Receivable Listed by Category
Item Ending balance Beginning balance
Commercial acceptance bill 484,538,424.18 1,012,776,099.43
Bank’s acceptance bill 1,032,634,966.93 1,345,404,094.53
Total 1,517,173,391.11 2,358,180,193.96
(2) Notes Receivable Pledged by the Company at the Period-end
Item Amount
Bank’s acceptance bill 693,159,230.21
Total 693,159,230.21
(3) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due
on the Balance Sheet Date at the Period-end
Item Amount of recognition Amount of not terminated
termination at the recognition at the period-end
period-end
Bank’s acceptance bill 701,692,531.30
Commercial acceptance bill 2,433,471.02 199,491,442.79
Total 704,126,002.32 199,491,442.79
(4) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the
Contract or Agreement
Item Amount of the notes transferred to accounts
receivable at the period-end
Bank’s acceptance bill 200,000,000.00
Commercial acceptance bill 745,878,417.66
Total 945,878,417.66
Note: At the end of the period, the bills transferred to the accounts receivable due to the issuer’s
failure to perform were the overdue bills of the company's factoring business.
(5) Listed by Withdrawal Methods for Bad Debt Provision
Ending balance
Category
Carrying amount Bad debt provision Carrying value
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Konka Group Co., Ltd. Interim Report 2021
Withdr
Propo
awal
Amount rtion Amount
proport
(%)
ion (%)
Provision for bad debts
provided individually
Bad debt provision
1,527,263,819.71 100.00 10,090,428.60 0.66 1,517,173,391.11
made as per portfolio
Of which: Bank
acceptance bill 1,032,634,966.93 67.61 1,032,634,966.93
Commercial
acceptance bill 494,628,852.78 32.39 10,090,428.60 2.04 484,538,424.18
Total 1,527,263,819.71 100.00 10,090,428.60 0.66 1,517,173,391.11
(Continued)
Beginning balance
Carrying amount Bad debt provision
Withd
Category Propo rawal Carrying value
Amount rtion Amount propo
(%) rtion
(%)
Provision for bad
debts provided
individually
Bad debt provision
2,387,417,262.59 100.00 29,237,068.63 1.22 2,358,180,193.96
made as per portfolio
Of which: Bank
acceptance bill 1,345,404,094.53 56.35 1,345,404,094.53
Commercial
acceptance bill 1,042,013,168.06 43.65 29,237,068.63 2.81 1,012,776,099.43
Total 2,387,417,262.59 100.00 29,237,068.63 1.22 2,358,180,193.96
(6) In the group, notes receivable, for which the provision for expected credit loss was made
according to trade acceptance
Ending balance
Name Bad debt Withdrawal
Carrying amount
provision proportion (%)
Within 1 year 494,628,852.78 10,090,428.60 2.04
Total 494,628,852.78 10,090,428.60 2.04
(7) Bad debt provision for notes receivable withdrawn, collected or reversed during the Reporting
Period
Changed amount
Beginning With Collected or
Category Write-off or Ending balance
balance draw reversed
verified
al
Commercial
acceptance bill 29,237,068.63 19,146,640.03 10,090,428.60
Total 29,237,068.63 19,146,640.03 10,090,428.60
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Konka Group Co., Ltd. Interim Report 2021
(8) Notes receivable actually written off in the current period
There is no notes receivable actually written off in the current period.
4. Accounts Receivable
(1) Listed by Withdrawal Methods for Expected Credit Loss
Ending balance
Carrying amount Bad debt provision
Category Withdr
Proport awal Carrying value
Amount Amount
ion (%) proport
ion (%)
Accounts receivable,
for which the
independent provision 1,398,702,013.10 24.34 765,540,779.44 54.73 633,161,233.66
for expected credit
losses
Accounts receivable,
for which the provision
for expected credit
losses was withdrawn
according to groups
Of which: aging group 3,396,271,822.61 59.10 308,692,123.69 9.09 3,087,579,698.92
Project payment
952,005,539.60 16.56 123,155,445.59 12.94 828,850,094.01
group
Subtotal of groups 4,348,277,362.21 75.66 431,847,569.28 9.93 3,916,429,792.93
Total 5,746,979,375.31 100.00 1,197,388,348.72 20.84 4,549,591,026.59
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category Withdr
Proport awal Carrying value
Amount Amount
ion (%) proport
ion (%)
Accounts receivable,
for which the
independent provision 1,384,462,893.38 27.50 750,096,749.22 54.18 634,366,144.16
for expected credit
losses
Accounts receivable,
for which the provision
for expected credit
losses was withdrawn
according to groups
Of which: aging group 3,004,054,396.28 59.66 271,291,702.62 9.03 2,732,762,693.66
Project payment
group 646,556,634.10 12.84 112,787,848.33 17.44 533,768,785.77
Subtotal of groups 3,650,611,030.38 72.50 384,079,550.95 10.52 3,266,531,479.43
Total 5,035,073,923.76 100.00 1,134,176,300.17 22.53 3,900,897,623.59
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Konka Group Co., Ltd. Interim Report 2021
1) Accounts receivable, for which, the independent provision for expected credit loss is made at
the period-end
Ending balance
Withdra
Name Carrying Bad debt wal Withdrawal
amount provision proportio reason
n (%)
Shanghai Huaxin
300,018,021.01 240,014,416.81 80.00 Debt default
International Group Co., Ltd
Hongtu Sanbao High-tech Agreement
200,000,000.00 80,000,000.00 40.00
Technology Co., Ltd. reorganization
Tewoo Finance Company Judicial
200,000,000.00 90,000,000.00 45.00
Limited reorganization
China Nuclear Engineering Increased credit
72,639,096.65 22,374,785.74 30.80
Construction Group Co., Ltd risk
No.1 Engineering Company
Expected to be
Limited of CCCC First
65,221,300.00 58,699,170.00 90.00 difficult to
Harbor Engineering Company
recover in full
Limited
Debt
Tahoe Group Co. Ltd 50,000,000.00 20,000,000.00 40.00
reorganization
Expected to be
China Energy Electric Fuel
50,000,000.00 40,000,000.00 80.00 difficult to
Co., Ltd
recover in full
Long-term
collection and
EmpireElectronicCorp 42,051,136.30 42,051,136.30 100.00
cannot be
recovered
The
counterparty is
bankrupt and is
H-BUSTERDOBRASILI 17,767,310.32 17,767,310.32 100.00
expected to be
difficult to
recover
Expected to be
TreeviewBusinessRegistration 11,533,071.11 11,533,071.11 100.00 difficult to
recover in full
Increased credit
Others 389,472,077.71 143,100,889.16 36.74
risk
Total 1,398,702,013.10 765,540,779.44 54.73
2) Accounts receivable, for which the provision for expected credit losses was withdrawn
according to groups
① In the group, accounts receivable, for which, the provision for expected credit loss was made
according to aging groups
Aging Ending balance
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Konka Group Co., Ltd. Interim Report 2021
Withdrawal
Carrying amount Bad debt provision
proportion (%)
Within 1 year 2,556,074,660.66 52,143,923.09 2.04
1 to 2 years 550,987,178.29 55,208,915.26 10.02
2-3 years 104,180,404.75 23,638,533.82 22.69
3-4 years 20,867,959.50 13,539,132.11 64.88
Over 4 years 164,161,619.41 164,161,619.41 100.00
Total 3,396,271,822.61 308,692,123.69 9.09
② In the group, accounts receivable, for which, the provision for expected credit loss was made
according to project payment groups
Ending balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within 1 year 579,801,611.63 28,990,080.58 5.00
1 to 2 years 215,058,744.95 21,505,874.48 10.00
2-3 years 61,349,562.07 18,404,868.62 30.00
3-4 years 82,889,837.11 41,444,918.56 50.00
Over 4 years 12,905,783.84 12,809,703.35 99.26
Total 952,005,539.60 123,155,445.59 12.94
(2) Accounts Receivable Listed by Aging
Aging Ending balance
Within 1 year 3,137,254,613.66
1 to 2 years 1,283,600,174.24
2-3 years 985,861,130.06
3-4 years 118,434,709.06
Over 4 years 221,828,748.29
Subtotal 5,746,979,375.31
Less: provision for bad debts 1,197,388,348.72
Total 4,549,591,026.59
(3) Bad debt provision for accounts receivable during the Reporting Period
Changed amount
Colle Writ
Categ cted e-off Decrease
Beginning balance Ending balance
ory Withdrawal or or for other
rever verifi reasons
sed ed
Bad
debt
1,134,176,300.17 64,007,725.46 795,676.91 1,197,388,348.72
provisi
on of
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Konka Group Co., Ltd. Interim Report 2021
Changed amount
Colle Writ
Categ cted e-off Decrease
Beginning balance Ending balance
ory Withdrawal or or for other
rever verifi reasons
sed ed
accoun
ts
receiva
ble
Total 1,134,176,300.17 64,007,725.46 795,676.91 1,197,388,348.72
(4) Accounts receivable actually verified during the Reporting Period
There were no accounts receivable actually verified during the Reporting Period
(5) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears
Party
The total amount of top five of account receivable of ending balance collected by arrears party
was RMB 1,850,904,230.04, accounting for 32.21% of total closing balance of account receivable,
the relevant ending balance of bad debt provision withdrawn was RMB446,133,386.05.
(6) There was no accounts receivable derecognized for transfer of financial assets.
(7) There is no amount of assets and liabilities formed due to the transfer of accounts receivable
and continued involvement in this year.
5. Accounts Receivable Financing
Item Ending balance Beginning balance
Notes Receivable 111,375,140.87 84,057,197.44
Total 111,375,140.87 84,057,197.44
Note: Accounts receivable financing is the bank acceptances of higher credit rating held by the
Company, which aim at both collecting contract cash and selling the financial assets themselves.
6. Prepayments
(1) Age of advances to suppliers
Ending balance Beginning balance
Item Amount Proportion Amount Proportion
(%) (%)
Within 1 year 1,180,899,468.37 94.80 1,165,964,102.58 98.60
1 to 2 years 48,185,527.45 3.87 14,282,024.18 1.21
2-3 years 14,919,139.92 1.20 733,390.33 0.06
Over 3 years 1,608,577.38 0.13 1,492,198.15 0.13
Total 1,245,612,713.12 100.00 1,182,471,715.24 100.00
Note: The amount of prepayments aged over one year at the end of the period is RMB
64,713,244.75, accounting for 5.20% of the total balance of prepayments of the Company, and
consists mainly of payments for goods afloat or unsettled payments.
(2) Advances to suppliers from top five prepaid parties classified based on the ending balance
The sum total of prepayments with top five ending balance collected as per the prepaid party is
RMB 666,288,915.38, and the proportion in total ending balance of payments is 53.49%.
7. Other receivables
Item Ending balance Beginning balance
Interest receivable 54,484,552.15 45,109,425.85
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Item Ending balance Beginning balance
Dividends receivable 547,848.62 4,947,848.62
Other Receivables 1,947,638,531.25 2,095,152,529.23
Total 2,002,670,932.02 2,145,209,803.70
7.1 Interest receivable
Item Ending balance Beginning balance
Fix time deposit 1,324,149.54 10,235,673.76
Entrusted loans 52,589,846.73 34,303,196.21
Factoring income 570,555.88 570,555.88
Total 54,484,552.15 45,109,425.85
7.2 Dividends receivable
Investee Ending balance Beginning balance
Chongqing Qingjia Electronic Co.,
547,848.62 547,848.62
Ltd.
Binzhou Beihai Weiqiao Solid Waste
4,400,000.00
Treatment Co., Ltd.
Total 547,848.62 4,947,848.62
7.3 Other receivables
(1) Classified by Account Nature
Item Ending balance Beginning balance
Deposit,Deposit, Deposit 1,680,032,404.13 1,642,180,460.58
Intercourse funds among minority
shareholders in the business
178,104,342.21 176,427,511.36
consolidation not under the same
control and related parties
Energy-saving subsidies 152,399,342.00 152,399,342.00
Disposal of non-current assets 132,331,700.00
Others 610,032,960.00 638,277,470.76
Total 2,620,569,048.34 2,741,616,484.70
(2) Withdrawal of Bad Debt Provision
Phase I Phase II Phase III
Expected Expected
Expected credit losses credit losses
Bad debt provision credit losses for the entire for the entire Total
over the next duration (no duration (with
12 months credit credit
impairment) impairment)
Balance as at 1 January
22,563,051.40 60,086,857.29 563,814,046.78 646,463,955.47
2021
In the Reporting Period,
Carrying amount of other
receivables on 1 January
2021:
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Konka Group Co., Ltd. Interim Report 2021
Phase I Phase II Phase III
Expected Expected
Expected credit losses credit losses
Bad debt provision credit losses for the entire for the entire Total
over the next duration (no duration (with
12 months credit credit
impairment) impairment)
——Transferred to the
-6,491,687.33 6,491,687.33
Phase II
——Transferred to the
-243,220.74 243,220.74
Phase III
——Transferred back to
the Phase II
——Transferred back to
the Phase I
Provision made in the
-281,860.53 28,935,282.95 -2,122,329.79 26,531,092.63
current year
Amount transferred back in
the current year
Write-off
Verification
Other changes -64,531.01 -64,531.01
Balance as at 30 June 2021 15,724,972.53 95,270,606.83 561,934,937.73 672,930,517.09
Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within 1 year, the loss provision
is measured according to the expected credit losses in the next 12 months.
The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed 1 year, the loss provision is measured based on the expected credit losses for
the entire duration.
The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred, the loss provision is measured according to the credit losses that
have occurred throughout the duration.
(3) Withdrawing bad debt provision for other receivables according to group
Ending balance
Carrying amount Bad debt provision
With
Category Propo draw Carrying value
Amount rtion Amount al
(%) propo
rtion
Other receivables
with significant
individual amount
and make 1,176,983,042.62 44.91 561,934,937.73 47.74 615,048,104.89
independent
provision for
expected credit loss
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Konka Group Co., Ltd. Interim Report 2021
Ending balance
Carrying amount Bad debt provision
With
Category Propo draw Carrying value
Amount rtion Amount al
(%) propo
rtion
Other receivables
withdrawn bad debt
provision according
to credit risks
characteristics
Aging group 1,234,608,154.98 47.12 103,359,395.49 8.37 1,131,248,759.49
Low-risk group 208,977,850.74 7.97 7,636,183.87 3.65 201,341,666.87
Subtotal of groups 1,443,586,005.72 55.09 110,995,579.36 7.69 1,332,590,426.36
Total 2,620,569,048.34 100.00 672,930,517.09 25.68 1,947,638,531.25
(Continued)
Beginning balance
Carrying amount Bad debt provision
Withdr
Category Propo
awal Carrying value
Amount rtion Amount
propor
(%)
tion
Other receivables
with significant
individual amount
and make 1,177,068,758.61 42.93 563,814,046.78 47.90 613,254,711.83
independent
provision for
expected credit loss
Other receivables
withdrawn bad debt
provision according
to credit risks
characteristics
Aging group 1,327,676,325.32 48.43 73,662,861.99 5.55 1,254,013,463.33
Low-risk group 236,871,400.77 8.64 8,987,046.70 3.79 227,884,354.07
Subtotal of groups 1,564,547,726.09 57.07 82,649,908.69 5.28 1,481,897,817.40
Total 2,741,616,484.70 100.00 646,463,955.47 23.58 2,095,152,529.23
(4) Listed by aging
Aging Ending balance
Within 1 year 830,239,625.35
1 to 2 years 1,445,123,746.26
2-3 years 143,356,114.57
3-4 years 6,173,200.66
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Aging Ending balance
4-5 years 5,293,746.88
Over 5 years 190,382,614.62
Subtotal 2,620,569,048.34
Less: bad debt provision 672,930,517.09
Total 1,947,638,531.25
(5) Bad Debt Provision for Other Receivables
The amount of bad debt provision for Reporting Period was RMB26,531,092.63, decreasing
RMB64,531.01 which was mainly due to exchange rate changes
(6) Top 5 Other Receivables in Ending Balance Collected according to the Arrears Party
The total amount of top five of account other receivables of ending balance collected by arrears
party was RMB1,020,353,281.63, accounting for 38.94% of total closing balance of other
receivables, the relevant ending balance of bad debt provision withdrawn was
RMB199,693,940.01.
(7) There were no other receivables derecognized due to transfer of financial assets during the
Reporting Period.
(8) There were no assets and liabilities formed by transferring other receivables and continuing to
be involved in this period.
8. Inventories
(1) Category of Inventory
Ending balance
Inventory falling
Item price reserves /
Carrying amount impairment Carrying value
provision of contract
performance costs
Raw materials 1,808,248,192.19 20,090,802.48 1,788,157,389.71
Semi-finished
194,322,474.09 13,226,031.20 181,096,442.89
product
Inventory goods 3,352,411,906.73 209,137,182.49 3,143,274,724.24
Contract
performance 46,732,650.07 46,732,650.07
costs
Total 5,401,715,223.08 242,454,016.17 5,159,261,206.91
(Continued)
Beginning balance
Inventory falling
Item price reserves /
Carrying amount impairment Carrying value
provision of contract
performance costs
Raw materials 1,246,721,423.97 28,137,287.12 1,218,584,136.85
Semi-finished
158,870,091.24 12,636,819.92 146,233,271.32
product
Inventory
3,389,343,445.93 249,362,200.01 3,139,981,245.92
goods
143
Konka Group Co., Ltd. Interim Report 2021
Beginning balance
Inventory falling
Item price reserves /
Carrying amount impairment Carrying value
provision of contract
performance costs
Contract
performance 16,502,023.32 16,502,023.32
costs
Total 4,811,436,984.46 290,136,307.05 4,521,300,677.41
(2) Inventory falling price reserves and impairment provision of contract performance costs
Increased Decreased
Decrease
Beginning by losing Ending
Item
balance Withdrawal Write-off controlling balance
right/other
reasons
Raw
materials 28,137,287.12 -4,614,719.70 3,431,764.94 20,090,802.48
Semi-fini
shed 12,636,819.92 589,211.28 13,226,031.20
product
Inventory
249,362,200.01 14,598,745.33 54,823,762.85 209,137,182.49
goods
Total 290,136,307.05 10,573,236.91 58,255,527.79 242,454,016.17
（3） Withdrawal Provision Basis of the Falling Price of the Inventory and the Reasons of the
Reversed or Write-off.
Specific basis of withdrawal of falling
Item Reasons for write-off
price reserves of inventory
The realizable net value was lower than the
Raw materials Sold or disposed in the current period
carrying value
Semi-finished The realizable net value was lower than the
Sold or disposed in the current period
product carrying value
Inventory The realizable net value was lower than the
Sold in the current period
goods carrying value
9. Contractual assets
(1) Details of contractual assets
Ending balance
Item Carrying amount Impairment Carrying value
provision
Accounts receivable from
settled but conditional 3,382,989,961.11 198,514,062.13 3,184,475,898.98
payment projects
Unsettled advertising
95,474,154.11 1,947,672.75 93,526,481.36
payments
Total 3,478,464,115.22 200,461,734.88 3,278,002,380.34
(Continued)
144
Konka Group Co., Ltd. Interim Report 2021
Beginning balance
Item Carrying amount Impairment Carrying value
provision
Accounts receivable from
settled but conditional 3,002,127,112.18 180,488,971.89 2,821,638,140.29
payment projects
Unsettled advertising
49,375,837.18 1,007,267.08 48,368,570.10
payments
Total 3,051,502,949.36 181,496,238.97 2,870,006,710.39
(2) Amount and reason of significant change in the book value of the contractual assets in the
current year
Item Amount changed Causes of the Change
Accounts receivable from settled
362,837,758.69 New engineering projects
but conditional payment projects
Total 362,837,758.69
(3) Making for impairment provision of contractual assets in the current year
Amount
transferr
Provision made Write-off/Verif
ed back
Item in the current ication in the Reasons
in the
year current year
current
year
Accounts The expected credit loss
receivable from is greater than the book
settled but 18,025,090.24 value of the current
conditional contract asset
payment projects impairment provision
The expected credit loss
is greater than the book
Unsettled 940,405.67 value of the current
advertising contract asset
payments impairment provision
Total 18,965,495.91
10. Current Portion of Non-current Assets
Item Ending balance Beginning Nature
balance
Current portion of debt Entrusted loans for
40,000,000.00 75,000,000.00
investment associated enterprises
Current portion of
29,003,761.31 37,310,158.82
long-term receivable Finance leasing amount
Total 69,003,761.31 112,310,158.82
(1) Significant debt investment/other debt investment at the year end
Ending balance
Debt investment in Coupon Actual
Par value Expiry Date
rate rate
Yibin OCT Sanjiang Real estate
40,000,000.00 5.70% 5.70% 2021-10-24
Co. Ltd.
145
Konka Group Co., Ltd. Interim Report 2021
Ending balance
Debt investment in Coupon Actual
Par value Expiry Date
rate rate
Total 40,000,000.00
(Continued)
Beginning balance
Debt investment in Coupon Actual
Par value Expiry Date
rate rate
Yibin OCT Sanjiang Real estate 2021/4/24
35,000,000.00
Co. Ltd. 5.70% 5.70%
Yibin OCT Sanjiang Real estate 2021/10/24
40,000,000.00
Co. Ltd. 5.70% 5.70%
Total 75,000,000.00
11. Other Current Assets
Item Ending balance Beginning balance
Prepayments and deductible taxes, and 1,003,270,717.12
926,643,711.18
refund of tax for export receivable
Principal of entrusted loans to joint ventures 1,098,703,380.39 826,684,400.00
Temporary difference of input tax 119,716,769.30 148,183,307.23
Others 24,210,085.20 11,635,064.98
Total 2,245,900,952.01 1,913,146,483.39
12. Long-term Receivables
(1) List of Long-term Receivables
Ending balance
Item Bad debt
Carrying amount Carrying value
provision
Finance leasing amount 27,613,130.76 27,613,130.76
Of which: unrealized financing income 1,169,368.74 1,169,368.74
Cash deposits of long-term receivables 41,090,400.00 41,090,400.00
Long-term receivables of projects with
350,937,230.14 350,937,230.14
franchise tights
Less: Current portion of long-term
receivable 29,003,761.31 29,003,761.31
See Note VI. 10 for details)
Total 390,636,999.59 390,636,999.59
(Continued)
Beginning balance
Item Bad debt
Carrying amount Carrying value
provision
Finance leasing amount 44,609,921.40 44,609,921.40
Of which: unrealized financing
2,526,836.56 2,526,836.56
income
Cash deposits of long-term
41,090,400.00 41,090,400.00
receivables
146
Konka Group Co., Ltd. Interim Report 2021
Beginning balance
Item Bad debt
Carrying amount Carrying value
provision
Long-term receivables of
351,107,041.45 351,107,041.45
projects with franchise tights
Less: Current portion of
long-term receivable 37,310,158.82 37,310,158.82
See Note VI. 10 for details)
Total 399,497,204.03 399,497,204.03
(2) List of Projects with Franchise Rights
Franchise Date of Operatio
Item Type Project scale
rights contract n
PPP Project of Right of
Partial
water supply and charge for
PPP 452,802,100.00 July 2016 trial
sewage Rushan sewage
operation
Silver Beach disposal
(3) Changes in Long-term Receivables of Projects with Franchise Rights
Decreased
Initial invested Beginning
Item Principal Other Ending balance
amount balance
recover decrease
PPP Project of
water supply
and sewage 351,107,041.45 351,107,041.45 169,811.31 350,937,230.14
Rushan Silver
Beach
Total 351,107,041.45 351,107,041.45 169,811.31 350,937,230.14
147
Konka Group Co., Ltd. Interim Report 2021
13. Long-term Equity Investment
Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Konka Ventures Development (Shenzhen) Co.,
2,250,590.00 571,291.00
Ltd.
Nanjing Zhihuiguang Information Technology
Research Institute Co., Ltd. 1,573,831.23 60,003.31
Feide Technology (Shenzhen) Co., Ltd. 10,671,986.45 -318,372.70
Shenzhen Kangyue Industrial Co., Ltd. 33,146,954.42 -446,727.83
Foshan Pearl River Media Creative Park
Cultural Development Co., Ltd. 4,900,000.00 -308,496.41
Shenzhen Konka Cross-Border Technological
Innovation Service Co., Ltd. 19,020.00 -632.96
Chengdu Konka Incubator Management Co.,
254,670.00 -74,359.99
Ltd.
Dongguan Konka Smart Electronic
16,172,903.60 -929,500.60
Technology Co., Ltd.
Puchuang Jiakang Technology Co., Ltd. 1,399,457.69 898,750.07
Guoguang Ruilian (Shenzhen) Network
Technology Co., Ltd.
Khorgos Yilingfang Information Technology
Co., Ltd. 1,795.48 -1,795.48
Chongqing Qingjia Electronic Co., Ltd. 18,801,653.84 -219,255.91
Shenzhen Jielunte Technology Co., Ltd. 89,187,905.40 1,975,628.71
148
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Panxu Intelligence Co., Ltd. 50,704,696.31 391,349.14
Beijing Konka Jingyuan Technology Co., Ltd. 766,290.97
Dongfang Jiahui (Zhuhai) Asset Management
Co., Ltd. 3,027,971.50 -307,974.19
Orient Konka no.1 (zhuhai) private equity
investment fund (limited partnership) 336,170,619.84 43,828,800.00 34,171,344.83 -10,322,239.82
Tongxiang Wuzhen Kunyu Equity Investment
3,500,000.00
Co., Ltd.
Shenzhen Xiaorui Technology Co., Ltd. 53,107,714.82 -1,135,930.87
Weihai Water Environmental Protection
Technology Co., Ltd. 2,526,483.15 -1,518.43
Weihai Yiheng Environmental Technology
Co., Ltd. 4,812,630.25 30,224.08
Huoqiu Kangrun Kaitian Water Environmental
Protection Co., Ltd. 52,434,987.50 12,435,012.50 7,497,000.00
Huarun Environmental Protection Water
Treatment Co., Ltd. 17,316,442.28 391,778.04
Binzhou Beihai Weiqiao Solid Waste
Treatment Co., Ltd. 182,666,028.25 17,371,700.00
Shandong Bishuiyuan Environmental
26,390,437.98 102,188.81
Technology Co., Ltd.
Yunnan Hongkang Solid Waste Disposal
Utilization Co., Ltd. 2,809,775.13 -110,373.99
149
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Shandong Konka Zhijia Electrical Appliances
Co., Ltd. 2,148,063.47 -1,245,650.56
Henan Konka Zhijia Electrical Appliances
Co., Ltd. 1,059,137.34 130,459.63
Anhui Kaikaishijie E-commerce Co., Ltd. 419,065,032.33
Wanjun Technology (Kunshan) Co., Ltd. 175,204,642.85 -2,046,465.83
Kunshan Kangsheng Investment Development
269,673,264.00 32,849,354.55
Co., Ltd.
Chutianlong Co., Ltd. 650,206,807.02 4,824,758.43
Heilongjiang Longkang Zhijia Technology
Co., Ltd. 1,060,725.79 -3,709.66
Konka Green, Konka Technology 75,261,304.56 75,261,304.56
Shaanxi Silu Yunqi Smart Technology Co.,
Ltd. 17,649,295.81 -1,596,222.64
Shenzhen Konka Information Network Co.,
Ltd.
Shenzhen Zhongbing Konka Technology Co.,
Ltd. 2,214,307.33 -2,214,307.33
Shenzhen Konka Smart Electrical Appliance
3,973,386.95 -1,441,954.44
Technology Co., Ltd.
Shenzhen Bosheng New Material Co.,
58,400,000.00 -2,064,227.96
Ltd.
Shenzhen Yaode Technology Co., Ltd. 219,357,772.76 -4,569,192.27
150
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Wuhan Tianyuan Environmental Protection
Co., Ltd. 304,654,243.69 13,222,348.47
Shenzhen Konka Yishijie Commercial Display
Co., Ltd. 81,955,858.27
Chuzhou Konka Technology Industry
Development Co., Ltd. 49,658,397.02 -1,172,317.71
Chuzhou Kangjin Healthcare Industry
118,122,798.37 -6,410,036.65
Development Co., Ltd.
Haimen Kangjian Technology Industrial Park
120,729,335.67 -3,070,358.71
Operation and Management Co., Ltd.
Chuzhou Kangxin Healthcare Industry
Development Co., Ltd. 187,180,000.00 -1,310,518.75
Dongguan Konka Investment Co., Ltd. 563,500,000.00 -12,122,313.26
Chongqing Konka Real Estate Development
Co., Ltd. 49,500,000.00 -7,987,220.86
Chongqing Chengda Real Estate Co., Ltd. 29,205,000.00 -303,372.41
Yilifang (Hainan) Technology Co., Ltd. 58,715,678.97 3,310,556.06
Shenzhen Morsemi Technology Co., Ltd. 2,723,686.36 -217,343.28
Chongqing Liangshan Enterprise Management
50,000.00
Co., Ltd.
Shenzhen Kangpeng Digital Technology Co.,
6,000,000.00 -1,063,135.76
Ltd.
Shenzhen Kangene Technology Innovation 900,000.00 808.91
151
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Development Co., Ltd.
Dalian Xinguan Technology Co., Ltd. 50,000,000.00 -1,411,462.01
Yantai Kangyun Industry Development Co.,
Ltd. 68,185,019.88 -78,596.04
Chongqing Kangyiqing Technology Co., Ltd. 1,000,000.00
Sichuan Aimijiakang Technology Co., Ltd. 2,000,000.00
Guangdong Kangyuan Semiconductor Co.,
3,214,600.00 213,202.98
Ltd.
Total 4,375,833,584.65 119,428,412.50 109,432,649.39 68,185,019.88 19,335,816.88
(Continued)
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Konka Ventures Development (Shenzhen) Co.,
Ltd. 2,821,881.00
Nanjing Zhihuiguang Information Technology
Research Institute Co., Ltd. 1,633,834.54
Feide Technology (Shenzhen) Co., Ltd. 10,353,613.75
Shenzhen Kangyue Industrial Co., Ltd. 32,700,226.59
Foshan Pearl River Media Creative Park
Cultural Development Co., Ltd. 4,591,503.59
152
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Shenzhen Konka Cross-Border Technological
Innovation Service Co., Ltd. 18,387.04
Chengdu Konka Incubator Management Co.,
Ltd. 180,310.01
Dongguan Konka Smart Electronic
Technology Co., Ltd. 15,243,403.00
Puchuang Jiakang Technology Co., Ltd. 826,052.90 1,472,154.86
Guoguang Ruilian (Shenzhen) Network
51,964.09
Technology Co., Ltd.
Khorgos Yilingfang Information Technology
Co., Ltd.
Chongqing Qingjia Electronic Co., Ltd. 18,582,397.93
Shenzhen Jielunte Technology Co., Ltd. 91,163,534.11
Panxu Intelligence Co., Ltd. 51,096,045.45
Beijing Konka Jingyuan Technology Co., Ltd. 766,290.97
Dongfang Jiahui (Zhuhai) Asset Management
Co., Ltd. 2,719,997.31
Orient Konka no.1 (zhuhai) private equity
investment fund (limited partnership) 335,505,835.19
Tongxiang Wuzhen Kunyu Equity Investment
3,500,000.00
Co., Ltd.
Shenzhen Xiaorui Technology Co., Ltd. 51,971,783.95 33,684,243.40
Weihai Water Environmental Protection
2,524,964.72
Technology Co., Ltd.
Weihai Yiheng Environmental Technology 4,842,854.33
153
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Co., Ltd.
Huoqiu Kangrun Kaitian Water Environmental
Protection Co., Ltd. 72,367,000.00
Huarun Environmental Protection Water
Treatment Co., Ltd. 17,708,220.32
Binzhou Beihai Weiqiao Solid Waste
Treatment Co., Ltd. 200,037,728.25
Shandong Bishuiyuan Environmental
26,492,626.79
Technology Co., Ltd.
Yunnan Hongkang Solid Waste Disposal
Utilization Co., Ltd. 2,699,401.14
Shandong Konka Zhijia Electrical Appliances
Co., Ltd. 902,412.91
Henan Konka Zhijia Electrical Appliances
Co., Ltd. 1,189,596.97
Anhui Kaikaishijie E-commerce Co., Ltd. 419,065,032.33
Wanjun Technology (Kunshan) Co., Ltd. 173,158,177.02
Kunshan Kangsheng Investment Development
Co., Ltd. 302,522,618.55
Chutianlong Co., Ltd. 6,720,000.00 648,311,565.45
Heilongjiang Longkang Zhijia Technology
1,057,016.13 2,470,398.03
Co., Ltd.
Konka Green, Konka Technology
Shaanxi Silu Yunqi Smart Technology Co.,
Ltd. 16,053,073.17
154
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Shenzhen Konka Information Network Co.,
Ltd. 12,660,222.73
Shenzhen Zhongbing Konka Technology Co.,
Ltd.
Shenzhen Konka Smart Electrical Appliance
Technology Co., Ltd. 2,531,432.51
Shenzhen Bosheng New Material Co., Ltd. 56,335,772.04 18,536,771.07
Shenzhen Yaode Technology Co., Ltd. 214,788,580.49
Wuhan Tianyuan Environmental Protection
317,876,592.16
Co., Ltd.
Shenzhen Konka Yishijie Commercial Display
Co., Ltd. 81,955,858.27
Chuzhou Konka Technology Industry
Development Co., Ltd. 48,486,079.31
Chuzhou Kangjin Healthcare Industry
Development Co., Ltd. 111,712,761.72
Haimen Kangjian Technology Industrial Park
Operation and Management Co., Ltd. 117,658,976.96
Chuzhou Kangxin Healthcare Industry
185,869,481.25
Development Co., Ltd.
Dongguan Konka Investment Co., Ltd. 551,377,686.74
Chongqing Konka Real Estate Development
Co., Ltd. 41,512,779.14
Chongqing Chengda Real Estate Co., Ltd. 28,901,627.59
Yilifang (Hainan) Technology Co., Ltd. 62,026,235.03
155
Konka Group Co., Ltd. Interim Report 2021
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Shenzhen Morsemi Technology Co., Ltd. 2,506,343.08
Chongqing Liangshan Enterprise Management
Co., Ltd. 50,000.00
Shenzhen Kangpeng Digital Technology Co.,
Ltd. 4,936,864.24
Shenzhen Kangene Technology Innovation
Development Co., Ltd. 900,808.91
Dalian Xinguan Technology Co., Ltd. 48,588,537.99
Yantai Kangyun Industry Development Co.,
68,106,423.84
Ltd.
Chongqing Kangyiqing Technology Co., Ltd. 1,000,000.00
Sichuan Aimijiakang Technology Co., Ltd. 2,000,000.00
Guangdong Kangyuan Semiconductor Co.,
Ltd. 3,427,802.98
Total 7,546,052.90 4,465,804,131.62 67,403,599.32
156
Konka Group Co., Ltd. Interim Report 2021
14. Other Equity Instrument Investment
(1) Investment in non-trading equity instruments
Item Ending balance Beginning balance
Shenzhen Tianyilian Science & Technology Co., Ltd.
Shenzhen Adopt Network Co., Ltd.
AVO 5,901,121.80 5,901,121.80
Shaoyang Haishang Ecological Agricultural Technology 1,501,956.00 1,501,956.00
Co., Ltd.
Feihong Electronics Co., Ltd.
ZAEFI
Shenzhen Chuangce Investment Development Co., Ltd.
Shanlian Information Technology Engineering Center 1,860,809.20 1,860,809.20
Shenzhen CIU Science & Technology Co., Ltd. 953,000.00 953,000.00
Shenzhen Digital TV National Engineering Laboratory Co., 7,726,405.16 7,726,405.16
Ltd.
Shanghai National Engineering Research Center of Digital 2,400,000.00 2,400,000.00
TV Co., Ltd.
Bohu UHD 5,000,001.00 5,000,001.00
Total 25,343,293.16 25,343,293.16
157
Konka Group Co., Ltd. Interim Report 2021
(2) Non-transactional Equity Instrument Investment
Amount of Reason for
Dividend
retained retained
income Reason for being designated to
Accum earnings earnings
recognize Accumulative be measured at fair value of
Item ulative transferred transferred
d in the loss which recorded in other
gain from other from other
current comprehensive income
comprehensiv comprehensive
period
e income income
4,800,000.00 Long-term holding based on
Shenzhen Tianyilian Science & Technology Co., Ltd.
strategic purpose
5,750,000.00 Long-term holding based on
Shenzhen Adopt Network Co., Ltd.
strategic purpose
98,878.20 Long-term holding based on
AVO
strategic purpose
Shaoyang Haishang Ecological Agricultural Long-term holding based on
Technology Co., Ltd. strategic purpose
Long-term holding based on
Feihong Electronics Co., Ltd. 1,300,000.00
strategic purpose
Long-term holding based on
ZAEFI 100,000.00
strategic purpose
Shenzhen Chuangce Investment Development Co., Long-term holding based on
485,000.00
Ltd. strategic purpose
Shanlian Information Technology Engineering Long-term holding based on
3,139,190.80
Center strategic purpose
Long-term holding based on
Shenzhen CIU Science & Technology Co., Ltd. 200,000.00
strategic purpose
Shenzhen Digital TV National Engineering Long-term holding based on
1,273,594.84
Laboratory Co., Ltd. strategic purpose
Shanghai National Engineering Research Center of Long-term holding based on
Digital TV Co., Ltd. strategic purpose
Bohu UHD Long-term holding based on
158
Konka Group Co., Ltd. Interim Report 2021
Amount of Reason for
Dividend
retained retained
income Reason for being designated to
Accum earnings earnings
recognize Accumulative be measured at fair value of
Item ulative transferred transferred
d in the loss which recorded in other
gain from other from other
current comprehensive income
comprehensiv comprehensive
period
e income income
strategic purpose
Total 17,146,663.84
159
Konka Group Co., Ltd. Interim Report 2021
15. Other Non-current Financial Assets
Item Ending balance Beginning balance
China Asset Management-Jiayi Overseas Designated Plan 203,000,000.00 203,000,000.00
Hunan Wanrong Technology Co., Ltd. 47,230,000.00
Yibin OCT Sanjiang Property Co., Ltd.
200,000,000.00 200,000,000.00
Yili Ecological Restoration Co., Ltd. 90,000,000.00 90,000,000.00
Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership 43,805,874.28
(Limited Partnership)
13,028,268.90
Shenzhen Kanghong Dongsheng Investment Partnership (Limited 33,559,302.86
Partnership)
17,754,800.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment 120,000,000.00
Partnership (Limited Partnership) 40,000,000.00
Yibin Kanghui Electronic Information Industry Equity Investment 4,000,000.00
Partnership (Limited Partnership)
4,000,000.00
Chuzhou Jiachen Information Technology Consulting Service Partnership 49,200,000.00
(Limited Partnership)
49,200,000.00
Yancheng Kangyan Information Industry Investment Partnership (Limited 81,167,900.00
Partnership)
1,050,000.00
Chongqing Kangxin Equity Investment Fund Limited Partnership 5,000,000.00
(Limited Partnership)
Subtotal of equity investments 829,733,077.14 665,263,068.90
Chuzhou Huike Smart Household Appliances Industry Investment 1,019,230,815.89
Partnership (Limited Partnership)
1,049,891,727.86
Ningbo Yuanqing No. 9 Investment Partnership 134,671,492.89 98,000,000.00
Shenzhen Beihu Technology Partnership (Limited Partnership) 58,000,000.00 65,000,000.00
Subtotal of debt investments 1,211,902,308.78 1,212,891,727.86
Total 2,041,635,385.92 1,878,154,796.76
16. Investment Property
(1) Investment properties measured at cost
Item Plant & buildings and land use right
I. Original carrying value
1. Beginning balance 600,562,678.71
2. Increase in the period 46,308,273.16
(1) Outsourcing
(2) Fixed assets\Construction in progress\Transfer of
46,308,273.16
intangible assets
3. Decrease in the period 60,197,571.56
(1) Disposal
(2) Other transfer out 60,197,571.56
4. Ending balance 586,673,380.31
II. The accumulative depreciation and accumulative
amortization
1. Beginning balance 61,977,010.42
2. Increase in the period 7,097,224.27
160
Konka Group Co., Ltd. Interim Report 2021
Item Plant & buildings and land use right
(1) Provision or amortization 7,097,224.27
3. Decrease in the period
(1) Disposal
(2) Other transfer out
4. Ending balance 69,074,234.69
III. Depreciation reserves
1. Beginning balance
2. Increase in the period
(1) Withdrawal
3. Decrease in the period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 517,599,145.62
2. Beginning carrying value 538,585,668.29
Note: The increase of investment real estate in the current period is mainly due to the Konka
Yibin Industrial Park and Konka Yantai Industrial Park.
(2) Investment properties measured at fair value
There were no investment properties measured at fair value of the Company.
(3) Investment properties in the process of title certificate handling
Item Carrying value Reason
Incorporation and under
144,589,955.57
Konka Yibin Industrial Park processing
Incorporation and under
38,753,062.88
Konka Yantai Industrial Park processing
Total 183,343,018.45
17. Fixed assets
Item Ending carrying value Beginning carrying value
Fixed Assets 3,355,378,019.70 3,178,642,017.84
Fixed assets pending for
disposal
Total 3,355,378,019.70 3,178,642,017.84
161
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(1) List of Fixed Assets
Houses and Transportation
Item Mechanical equipment Electronic equipment Other equipment Total
buildings equipment
I. Original carrying value
1. Beginning balance 1,885,131,717.55 2,691,194,912.55 206,926,929.73 64,942,921.83 298,050,533.07 5,146,247,014.73
2. Increased amount of the 241,729,370.77 176,521,453.22 9,374,827.99 3,240,495.06 16,111,111.36 446,977,258.40
period
(1) Purchase 3,750,493.22 20,712,938.66 9,374,827.99 3,240,495.06 14,807,369.41 51,886,124.34
(2) Transfer of construction 237,978,877.55 155,808,514.56 1,303,741.95 395,091,134.06
in progress
(3) Transfer of investment
property
3. Decreased amount of the
47,484,848.64 169,743,139.85 1,401,154.46 3,590,532.85 2,339,699.51 224,559,375.31
period
(1) Disposal or Scrap 2,203,045.83 6,046,941.58 1,401,154.46 3,590,532.85 2,339,699.51 15,581,374.23
(2) Decrease for loss of
controlling right
(3) Transfer to investment
45,281,802.81 45,281,802.81
property
(4) Decrease for other
163,696,198.27 163,696,198.27
reasons
4. Ending balance 2,079,376,239.68 2,697,973,225.92 214,900,603.26 64,592,884.04 311,821,944.92 5,368,664,897.82
II. Accumulative
depreciation
1. Beginning balance 501,722,343.90 1,044,306,408.80 148,018,198.44 43,570,055.60 160,664,350.97 1,898,281,357.71
2. Increased amount of the 36,658,487.94 108,910,156.14 10,794,355.24 4,122,025.48 15,348,947.22 175,833,972.02
period
(1) Withdrawal 36,658,487.94 108,910,156.14 10,794,355.24 4,122,025.48 15,348,947.22 175,833,972.02
162
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Houses and Transportation
Item Mechanical equipment Electronic equipment Other equipment Total
buildings equipment
(2) Transfer of investment
property
3. Decreased amount of the 1,169,586.01 123,765,723.85 1,324,043.18 2,777,160.80 1,107,152.26 130,143,666.10
period
(1) Disposal or Scrap 1,151,989.06 3,287,743.04 1,324,043.18 2,777,160.80 1,107,152.26 9,648,088.34
(2) Decrease for loss of
controlling right
(3) Transfer to investment
17,596.95 17,596.95
property
(4) Decrease for other 120,477,980.81 120,477,980.81
reasons
4. Ending balance 537,211,245.83 1,029,450,841.09 157,488,510.50 44,914,920.28 174,906,145.93 1,943,971,663.63
III. Depreciation reserves
1. Beginning balance 1,247,805.91 64,440,684.26 1,221,230.02 820,215.24 1,593,703.75 69,323,639.18
2. Increased amount of the
period
(1) Withdrawal
3. Decreased amount of the
7,764.50 660.19 8,424.69
period
(1) Disposal or Scrap 7,764.50 660.19 8,424.69
4. Ending balance 1,247,805.91 64,440,684.26 1,213,465.52 820,215.24 1,593,043.56 69,315,214.49
IV. Carrying value
1. Ending carrying value 1,540,917,187.94 1,604,081,700.57 56,198,627.24 18,857,748.52 135,322,755.43 3,355,378,019.70
2. Beginning carrying value 1,382,161,567.74 1,582,447,819.49 57,687,501.27 20,552,650.99 135,792,478.35 3,178,642,017.84
163
Konka Group Co., Ltd. Interim Report 2021
(2) List of Temporarily Idle Fixed Assets
Original Accumulative Impairment Carrying value
Item
carrying value depreciation provision
Mechanical
15,727,901.88 4,847,429.03 1,933,845.35 8,946,627.50
equipment
Electronic
1,959,751.03 1,574,316.87 385,434.16
equipment
Transportation
equipment
918,103.44 399,375.00 518,728.44
Other equipment 1,795,007.22 1,593,299.03 26,675.22 175,032.97
Total 20,400,763.57 8,414,419.93 1,960,520.57 10,025,823.07
(3) Fixed Assets Leased out from Operation Lease
Item Ending carrying value
Mechanical equipment 16,856,106.31
Transportation vehicles and electronic equipment 147,827.32
Total 17,003,933.63
(4) Details of Fixed Assets Failed to Accomplish Certification of Property
Imp
airm
Original Accumulative Net carrying
Item ent Reason
carrying value depreciation value
prov
ision
New
Konka Yibin construction
78,686,299.55 742,842.69 77,943,456.86
Industrial Park with pending
certificate
Yikang
Historical
Building 76,610,752.33 37,766,687.72 38,844,064.61
reasons
property
Jingyuan
Historical
Building 20,018,497.00 9,770,559.01 10,247,937.99
reasons
property
26-1
Longzhimeng,
Pangjiang
Under
Street Property 6,072,572.34 1,097,627.05 4,974,945.29
processing
in Dadong
District,
Shenyang
Purification
tank for liquid
Under
waste of 2,653,000.00 1,542,056.25 1,110,943.75
processing
XingDa
HongYe
Total 184,041,121.22 50,919,772.72 133,121,348.50
164
Konka Group Co., Ltd. Interim Report 2021
(5) Fixed Assets with Restricted Ownership or Use Right
Ending carrying
Item Reasons
value
Housing and buildings of Anhui
152,555,215.06 Mortgage borrowings
Tongchuang
Machinery equipment of Jiangxi
125,466,230.01 Finance lease mortgage
Konka
Machinery equipment of Xinfeng
125,505,890.56 Finance lease mortgage
Microcrystalline
Housing and buildings of Frestec
92,281,884.82 Finance lease mortgage
Refrigeration
Buildings of Konka Group 71,008,186.14 Mortgage borrowings
Housing and buildings of XingDa
39,196,058.38 Mortgage borrowings
HongYe
Machinery equipment of Xingda
22,632,718.61 Finance lease mortgage
Hongye
Machinery equipment of Boluo
11,917,835.51 Finance lease mortgage
Konka Precision
Factories of Boluo Konka 1,292,009.75 Mortgage borrowings
As collateral for former shareholder’s
Buildings of Jiangxi Konka 3,470,635.83
guarantee
Smart machinery equipment and
42,136,390.95 Mortgage borrowings
other equipment of Jiangsu Konka
Total 687,463,055.62
18. Construction in Progress
Item Ending balance Beginning balance
Construction in Progress 10,099,450,528.06 9,236,643,931.68
Total 10,099,450,528.06 9,236,643,931.68
165
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18.1 Construction in progress
(1) List of Construction in Progress
Ending balance Beginning balance
Carrying amount Impa Carrying value Carrying amount Impai Carrying value
Item irme rment
nt provis
provi ion
sion
Comprehensive improvement engineering project of
drainage basins in the city of Donggang 992,181,212.43 992,181,212.43 878,298,840.85 878,298,840.85
Central City Comprehensive accelerated programs in
Economic and Technological Development Zone of 1,053,704,078.58 1,053,704,078.58 854,403,424.70 854,403,424.70
Binhai, Weifang
Sewage treatment and water environment project in
737,489,434.58 737,489,434.58 736,291,181.05 736,291,181.05
Ankang County
PPP Project of Lushan Shahe Ecological
Rehabilitation and Improvement (Phase I) 717,639,485.24 717,639,485.24 712,003,094.27 712,003,094.27
PPP Project of Funan Sewage Treatment 742,364,507.22 742,364,507.22 698,546,462.73 698,546,462.73
Comprehensive water environment improvement
project in Mengcheng County, Anhui Province 703,684,828.74 703,684,828.74 693,071,428.99 693,071,428.99
Water supply engineering project in Mazongshan
Town, Subei Mongol Autonomous County, Gansu 715,921,467.23 715,921,467.23 651,327,229.42 651,327,229.42
Province
Integrated PPP Project of Huangpi Sewage Treatment 582,540,387.79 582,540,387.79 566,856,746.38 566,856,746.38
Ankang Smart Plant 384,553,302.39 384,553,302.39 549,848,298.86 549,848,298.86
The second line of Jiangxi Nano Crystallized Glass 330,813,294.31 330,813,294.31 317,578,212.72 317,578,212.72
Dayi Project 448,416,794.95 448,416,794.95 315,363,263.81 315,363,263.81
Phase I of ecological restoration and protection of
352,496,648.43 352,496,648.43 294,709,246.41 294,709,246.41
Danhe River Basin in Gaoping City
166
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Ending balance Beginning balance
Carrying amount Impa Carrying value Carrying amount Impai Carrying value
Item irme rment
nt provis
provi ion
sion
Water environment improvement project in downtown
Chongzhou 267,527,695.92 267,527,695.92 265,143,141.30 265,143,141.30
Tongchuan Project 198,130,237.44 198,130,237.44 188,185,801.03 188,185,801.03
The second sewage plant of Laizhou 204,264,290.24 204,264,290.24 185,205,457.46 185,205,457.46
Construction of Suining Electronic Industrial Park
Workshops 225,609,993.83 225,609,993.83 170,314,313.43 170,314,313.43
Franchise project of disposal of kitchen waste in
Gaoling, Xi'an 215,967,649.86 215,967,649.86 159,947,876.21 159,947,876.21
Water supply and water resources development
project in Changning 45,443,426.54 45,443,426.54 129,766,743.81 129,766,743.81
R&D equipment construction project of Chongqing
Optoelectronic Research Institute 170,072,455.78 170,072,455.78 129,657,635.39 129,657,635.39
Phase II of Rural Residential Environment
Improvement and Reconstruction Project (domestic 140,329,311.33 140,329,311.33 122,764,816.91 122,764,816.91
sewage treatment) in Qinhan New Town
Infrastructure Project of Chongqing Konka
Semiconductor Optoelectronics Research Institute 95,823,834.96 95,823,834.96 63,294,064.44 63,294,064.44
(Part I and Part II)
Other projects 774,476,190.27 774,476,190.27 554,066,651.51 554,066,651.51
Total 10,099,450,528.06 10,099,450,528.06 9,236,643,931.68 9,236,643,931.68
(2) Changes of Significant Construction in Progress
Name of item Beginning balance Increased Decreased Ending balance
167
Konka Group Co., Ltd. Interim Report 2021
Transferred
Other
to long-term
decrease
assets
Comprehensive improvement engineering project of
878,298,840.85 113,882,371.58 992,181,212.43
drainage basins in the city of Donggang
Central City Comprehensive accelerated programs in
Economic and Technological Development Zone of 854,403,424.70 199,300,653.88 1,053,704,078.58
Binhai, Weifang
Sewage treatment and water environment project in
Ankang County 736,291,181.05 1,198,253.53 737,489,434.58
PPP Project of Lushan Shahe Ecological
Rehabilitation and Improvement (Phase I) 712,003,094.27 5,636,390.97 717,639,485.24
PPP Project of Funan Sewage Treatment 698,546,462.73 43,818,044.49 742,364,507.22
Comprehensive water environment improvement
project in Mengcheng County, Anhui Province 693,071,428.99 10,613,399.75 703,684,828.74
Water supply engineering project in Mazongshan
Town, Subei Mongol Autonomous County, Gansu 651,327,229.42 64,594,237.81 715,921,467.23
Province
Integrated PPP Project of Huangpi Sewage Treatment 566,856,746.38 15,683,641.41 582,540,387.79
Ankang Smart Plant 549,848,298.86 31,599,406.73 196,894,403.20 384,553,302.39
The second line of Jiangxi Nano Crystallized Glass 317,578,212.72 13,235,081.59 330,813,294.31
Dayi Project 315,363,263.81 133,053,531.14 448,416,794.95
Phase I of ecological restoration and protection of
Danhe River Basin in Gaoping City 294,709,246.41 57,787,402.02 352,496,648.43
Water environment improvement project in downtown
Chongzhou 265,143,141.30 2,384,554.62 267,527,695.92
Tongchuan Project 188,185,801.03 9,944,436.41 198,130,237.44
The second sewage plant of Laizhou 185,205,457.46 19,058,832.78 204,264,290.24
168
Konka Group Co., Ltd. Interim Report 2021
Decreased
Name of item Beginning balance Increased Transferred Ending balance
Other
to long-term
decrease
assets
Construction of Suining Electronic Industrial Park
Workshops 170,314,313.43 55,295,680.40 225,609,993.83
Franchise project of disposal of kitchen waste in
159,947,876.21 56,019,773.65 215,967,649.86
Gaoling, Xi'an
Water supply and water resources development project
129,766,743.81 2,840,412.98 87,163,730.25 45,443,426.54
in Changning
R&D equipment construction project of Chongqing
129,657,635.39 40,414,820.39 170,072,455.78
Optoelectronic Research Institute
Phase II of Rural Residential Environment
Improvement and Reconstruction Project (domestic 122,764,816.91 17,564,494.42 140,329,311.33
sewage treatment) in Qinhan New Town
Infrastructure Project of Chongqing Konka
Semiconductor Optoelectronics Research Institute 63,294,064.44 32,529,770.52 95,823,834.96
(Part I and Part II)
Other projects 554,066,651.51 270,809,514.32 50,399,975.56 774,476,190.27
Total 9,236,643,931.68 1,197,264,705.39 334,458,109.01 10,099,450,528.06
(Continued)
Estimate Proportion Of which: the Capitalization
Engineerin
d estimated of the Accumulative amount of the rate of the
Name of item number project g amount of capitalized interests of Capital resources
(RMB10 accumulative Schedule capitalized interests interests of the the period
0 million) input (%) (%) period (%)
Comprehensive improvement
Self-owned fund and
engineering project of drainage basins 12.99 76.38 76.38 87,331,493.01 17,873,302.21 4.90
bank financing
in the city of Donggang
169
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Estimate Proportion Of which: the Capitalization
Engineerin
d estimated of the Accumulative amount of the rate of the
Name of item number project g amount of capitalized interests of Capital resources
(RMB10 accumulative Schedule capitalized interests interests of the the period
0 million) input (%) (%) period (%)
Central City Comprehensive
accelerated programs in Economic and Self-owned fund and
16.50 63.86 63.86 38,509,281.25 16,433,639.59 4.95
Technological Development Zone of bank financing
Binhai, Weifang
Sewage treatment and water
22.41 32.91 32.91 Self-owned fund
environment project in Ankang County
PPP Project of Lushan Shahe
Self-owned fund and
Ecological Rehabilitation and 12.68 56.61 56.61 2,015,000.00 2,015,000.00 4.65
bank financing
Improvement (Phase I)
PPP Project of Funan Sewage Self-owned fund and
9.72 76.35 76.35 36,934,940.97 11,073,562.50 4.80
Treatment bank financing
Comprehensive water environment
Self-owned fund and
improvement project in Mengcheng 15.93 44.16 44.16 2,757,333.33 2,757,333.33 4.70
bank financing
County, Anhui Province
Water supply engineering project in
Self-owned fund and
Mazongshan Town, Subei Mongol 9.70 73.80 73.80 38,777,592.79 18,148,861.54 5.24
bank financing
Autonomous County, Gansu Province
Integrated PPP Project of Huangpi Self-owned fund and
7.38 78.89 78.89 24,202,231.56 9,770,644.06 4.34
Sewage Treatment bank financing
Ankang Smart Plant Self-owned fund and
9.56 60.82 60.82 5,944,374.97 5,944,374.97 4.85
bank financing
The second line of Jiangxi Nano Self-owned fund and
3.92 84.36 84.36 11,751,563.31 5,676,528.03 4.90
Crystallized Glass bank financing
170
Konka Group Co., Ltd. Interim Report 2021
Estimate Proportion Of which: the Capitalization
Engineerin
d estimated of the Accumulative amount of the rate of the
Name of item number project g amount of capitalized interests of Capital resources
(RMB10 accumulative Schedule capitalized interests interests of the the period
0 million) input (%) (%) period (%)
Dayi Project 8.93 50.23 50.23 Self-owned fund
Phase I of ecological restoration and
protection of Danhe River Basin in 8.82 39.95 39.95 Self-owned fund
Gaoping City
Water environment improvement
3.93 68.07 68.07 Self-owned fund
project in downtown Chongzhou
Tongchuan Project Self-owned fund and
2.56 77.29 77.29 9,181,614.95 3,893,221.38 5.07
bank financing
The second sewage plant of Laizhou 6.90 29.98 29.98 Self-owned fund
Construction of Suining Electronic Self-owned fund and
2.46 91.82 91.82 3,696,036.17 3,696,036.17 4.45
Industrial Park Workshops bank financing
Franchise project of disposal of kitchen
5.57 38.76 38.76 Self-owned fund
waste in Gaoling, Xi'an
Water supply and water resources
7.08 77.23 77.23 Self-owned fund
development project in Changning
R&D equipment construction project
of Chongqing Optoelectronic Research 7.99 21.29 21.29 Self-owned fund
Institute
Phase II of Rural Residential
Environment Improvement and
Self-owned fund and
Reconstruction Project (domestic 5.32 26.54 26.54 1,382,180.32 63,583.18 7.90
project financing
sewage treatment) in Qinhan New
Town
171
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Estimate Proportion Of which: the Capitalization
Engineerin
d estimated of the Accumulative amount of the rate of the
Name of item number project g amount of capitalized interests of Capital resources
(RMB10 accumulative Schedule capitalized interests interests of the the period
0 million) input (%) (%) period (%)
Infrastructure Project of Chongqing
Konka Semiconductor Optoelectronics 4.86 19.73 19.73 Self-owned fund
Research Institute (Part I and Part II)
Self-owned fund and
Other projects 71,479,797.02
finance lease
Total 333,963,439.65 97,346,086.96
19. Right-of-Use Assets
Item Houses and buildings Equipment Total
I. Original carrying value
1. Beginning balance 103,006,581.18 832,266.36 103,838,847.54
2. Increased amount of the period 10,321,403.56 10,321,403.56
(1) Increased leases 10,321,403.56 10,321,403.56
3. Decreased amount of the period 41,026.46 41,026.46
(1) Other 41,026.46 41,026.46
4. Ending balance 113,286,958.28 832,266.36 114,119,224.64
II. Accumulated depreciation
1. Beginning balance
2. Increased amount of the period 22,114,939.47 282,262.14 22,397,201.61
(1) Withdrawal 22,114,939.47 282,262.14 22,397,201.61
172
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Item Houses and buildings Equipment Total
3. Decreased amount of the period
(1) Disposal
4. Ending balance 22,114,939.47 282,262.14 22,397,201.61
III. Depreciation reserves
1. Beginning balance
2. Increased amount of the period
3. Decreased amount of the period
4. Ending balance
IV. Carrying value
1. Ending carrying value 91,172,018.81 550,004.22 91,722,023.03
2. Beginning carrying value 103,006,581.18 832,266.36 103,838,847.54
20. Intangible Assets
(1) List of intangible assets
Intellectual property
Item Land use right Right to use Total
Patent and
Trademark right Franchise rights software and Subtotal
know-how
others
I. Original carrying value
1. Beginning balance 1,046,826,764.13 75,487,617.43 102,532,417.78 106,571,344.10 118,345,808.42 402,937,187.73 1,449,763,951.86
2. Increased amount of
53,170,488.73 5,496,855.24 5,496,855.24 58,667,343.97
the period
(1) Purchase 35,677,288.49 3,811,038.58 3,811,038.58 39,488,327.07
173
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Intellectual property
Item Land use right Right to use Total
Patent and
Trademark right Franchise rights software and Subtotal
know-how
others
(2) Transfer of
17,493,200.24 1,685,816.66 1,685,816.66 19,179,016.90
construction in progress
(3) Internal R&D
(4) Transfer from
investment property
3. Decreased amount of
39,701,907.35 39,701,907.35
the period
(1) Disposal
(2) Decrease for loss of
28,704,000.00 28,704,000.00
controlling right
(3) Decrease in
transfer-in of investment 10,997,907.35 10,997,907.35
real estate
4. Ending balance 1,060,295,345.51 75,487,617.43 102,532,417.78 106,571,344.10 123,842,663.66 408,434,042.97 1,468,729,388.48
II. Accumulated
- -
amortization
1. Beginning balance 98,643,099.35 5,272,452.95 82,831,515.87 15,547,087.50 55,377,712.07 159,028,768.39 257,671,867.74
2. Increased amount of
15,375,782.10 277.78 13,151,025.27 2,221,012.50 7,958,889.76 23,331,205.31 38,706,987.41
the period
(1) Withdrawal 15,375,782.10 277.78 13,151,025.27 2,221,012.50 7,958,889.76 23,331,205.31 38,706,987.41
(2) Other increases
3. Decreased amount of
542,341.98 542,341.98
the period
174
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Intellectual property
Item Land use right Right to use Total
Patent and
Trademark right Franchise rights software and Subtotal
know-how
others
(1) Disposal
(2) Decrease for loss of
controlling right
(3) Decrease in
transfer-in of investment 542,341.98 542,341.98
real estate
4. Ending balance 113,476,539.47 5,272,730.73 95,982,541.14 17,768,100.00 63,336,601.83 182,359,973.70 295,836,513.17
III. Depreciation reserves
1. Beginning balance 2,901,082.61 2,901,082.61 2,901,082.61
2. Increased amount of
the period
(1) Withdrawal
(2) Increase for business
combination
3. Decreased amount of
the period
(1) Disposal
(2) Decrease for loss of
controlling right
4. Ending balance 2,901,082.61 2,901,082.61 2,901,082.61
IV. Carrying value
1. Ending carrying value 946,818,806.04 70,214,886.70 3,648,794.03 88,803,244.10 60,506,061.83 223,172,986.66 1,169,991,792.70
175
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Intellectual property
Item Land use right Right to use Total
Patent and
Trademark right Franchise rights software and Subtotal
know-how
others
2. Beginning carrying
948,183,664.78 70,215,164.48 16,799,819.30 91,024,256.60 62,968,096.35 241,007,336.73 1,189,191,001.51
value
176
Konka Group Co., Ltd. Interim Report 2021
(2) Land Use Right with Certificate of Title Uncompleted
Item Carrying value Reason
Land usage right of the subsidiary
5,181,396.68 Under processing
Jiangxi High Transparent Substrate
Total 5,181,396.68
(3) Significant Intangible Assets
Remaining amortization
Item Ending carrying value
period (year)
Land usage right of Fenggang Konka
196,005,772.67 48.17
Intelligent Industrial Park
Frestec Zhijia land use right 95,059,550.03 49.25
Franchise rights of sewage treatment in
93,282,525.01 21.00
Laizhou
Land usage right of Chongqing Konka 61,154,286.34 48.17
Land usage right of Frestec 68,713,717.81 35.25
Land usage right of Huanjia (Henan) 65,215,488.08 48.00
Land usage right of Anhui Konka 2 #
55,369,010.66 47.42
land
Land usage right of Liaoyang Kangshun 35,200,836.96 49.67
Land usage right of Anhui Konka 3#
19,011,338.67 47.33
land
Total 689,012,526.23
(5) Intangible Assets with restricted ownership or using right
Item Ending carrying value Reasons
Land usage right of Frestec 68,713,717.81 Finance lease mortgage
Land usage right of Anhui Konka 2 #
55,369,010.66 As collateral for loan
land
Land use right of Anhui Tongchuang 18,676,491.11 As collateral for loan
Land usage right of XingDa HongYe 14,283,458.30 As collateral for loan
Yikang technology patents and
9,000,000.00 Finance lease mortgage
know-how
Original shareholder guarantee
Land usage right of Jiangxi Konka 10,390,478.17
mortgage
Land use right of Kangjia in Yibin 4,678,863.20 As collateral for loan
Land use right of Konka Guangming 5,220,441.48 As collateral for loan
Land use right of Jiangsu Konka Smart 14,924,162.24 As collateral for loan
Land use right of Dongguan Konka 196,005,772.67 As collateral for loan
Total 397,262,395.64
21. Development expenditures
Item Beginning Increased Decreased Ending
balance balance
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Konka Group Co., Ltd. Interim Report 2021
Amount Transferred
Expenditure recognized into current
of internal as profit or loss
development intangible
assets
Performance
improvement
57,745.03 57,745.03
project of Mini &
Micro LED
Total 57,745.03 57,745.03
22. Goodwill
(1) Original Carrying Value of Goodwill
Increased Decreased
Formed
Name of
from
the Beginning balance Other Othe Ending balance
business Dispose
investees s rs
combinatio
n
Econ
467,825,151.34 467,825,151.34
Technology
Jiangxi
340,111,933.01 340,111,933.01
Konka
XingDa
44,156,682.25 44,156,682.25
HongYe
Total 852,093,766.60 852,093,766.60
(2) Provisions for Goodwill Impairment
Name of Increased Decreased
the Beginning balance Othe Other Ending balance
Withdrawal Dispose
investees rs s
Econ
Technology
Jiangxi
154,337,946.29 154,337,946.29
Konka
XingDa
21,959,947.14 21,959,947.14
HongYe
Total 176,297,893.43 176,297,893.43
(3) Relevant information on the asset group or combination of asset groups where goodwill is
located
The asset group or combination of asset groups in which the goodwill is located is the
composition of all main business operating tangible assets and identifiable intangible assets
(excluding working capital and non-operating assets) reflected in the balance sheet of the
corresponding subsidiary and related to goodwill Asset group. As of 30 June 2021, there were no
specific signs of impairment during the reporting period, and no provision for impairment was
required.
23. Long-term Deferred Expenses
Other
Beginning Amortization
Item Increased decreased Ending balance
balance amount
amount
Renovation 92,922,237.45 90,568,588.76 19,262,238.30 794,221.31 163,434,366.60
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Konka Group Co., Ltd. Interim Report 2021
Other
Beginning Amortization
Item Increased decreased Ending balance
balance amount
amount
costs
Shoppe
24,678,629.46 5,827,040.99 9,806,693.49 31,092.74 20,667,884.22
expense
Others 35,597,695.91 8,160,094.22 14,914,382.96 28,843,407.17
Total 153,198,562.82 104,555,723.97 43,983,314.75 825,314.05 212,945,657.99
24. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets without Offset
Ending balance Beginning balance
Item Deductible Deferred income Deductible Deferred income
temporary tax liabilities temporary tax liabilities
difference difference
assets assets
Deductible
losses 4,384,823,983.52 945,470,014.66 3,454,342,497.93 765,781,935.91
Assets
impairment 1,672,761,604.43 357,408,076.44 1,672,345,584.63 355,173,623.87
provision
Deferred
52,695,094.43 12,741,367.26 302,984,312.52 75,408,820.37
Income
Accrued
133,171,310.14 25,777,071.72 206,844,865.32 40,844,897.61
expenses
Unrealized
internal sales 30,988,823.87 7,747,208.22 37,257,399.14 9,068,649.87
profits
Others 88,802,295.75 19,113,367.24 90,902,865.84 19,638,509.76
Total 6,363,243,112.14 1,368,257,105.54 5,764,677,525.38 1,265,916,437.39
(2) Lists of Deferred Income Tax Liabilities without Offset
Ending balance Beginning balance
Item Taxable Deferred income Deferred income
Taxable temporary
temporary tax liabilities tax liabilities
difference
difference
Liability Liability
Estimated added
value of assets not
278,070,394.09 52,902,937.13 303,689,567.68 57,097,842.23
under the same
control
Prepaid interest 56,730,324.55 13,878,051.00 48,578,683.63 11,840,140.77
Accelerated
depreciation of 5,796,848.51 1,298,287.13 4,443,598.64 959,974.66
fixed assets
Others 14,293,237.28 2,124,097.19 27,585,930.42 5,921,274.27
Total 354,890,804.43 70,203,372.45 384,297,780.37 75,819,231.93
(3) List of Unrecognized Deferred Income Tax Assets
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Konka Group Co., Ltd. Interim Report 2021
Item Ending balance Beginning balance
Deductible losses 1,688,694,412.44 1,526,406,964.50
Deductible temporary difference 790,183,337.45 766,691,485.59
Total 2,478,877,749.89 2,293,098,450.09
25. Other Non-current Assets
Ending balance
Item Impairment
Carrying amount Carrying value
provision
Prepayment for land-purchase 1,180,082,994.42 1,180,082,994.42
Prepaid amount for engineering,
equipment and other long-term assets 31,451,170.53 31,451,170.53
Entrusted loans 11,225,866.61 11,225,866.61
Construction of government projects 23,463,565.16 23,463,565.16
Total 1,246,223,596.72 1,246,223,596.72
(Continued)
Beginning balance
Item Impairment
Carrying amount Carrying value
provision
Prepayment for land-purchase 1,538,728,032.15 1,538,728,032.15
Prepaid amount for engineering,
equipment and other long-term assets 247,719,684.59 247,719,684.59
Entrusted loans 10,867,888.84 10,867,888.84
Construction of government projects 23,463,565.16 23,463,565.16
Total 1,820,779,170.74 1,820,779,170.74
26. Short-term Borrowings
Item Ending balance Beginning balance Description
Unsecured borrowings 8,111,519,817.09 7,164,301,258.30
Borrowings secured by
1,799,773,111.57 2,038,705,892.75 ①②③④
guarantee
Borrowings secured by
749,035,591.34 1,787,543,324.73 ⑤⑥⑦⑧⑨⑩
collateral
Total 10,660,328,520.00 10,990,550,475.78
Notes: a) The Company provides joint and several liability guarantee for its subsidiaries Anhui
Konka, Anhui Tongchuang, Pengrun Technology, Ningbo Kanghanrui Electric Appliance, Hong
Kong Konka, Sichuan Konka, Econ Technology, Jiangxi Konka, Jiangxi High-permeability
Substrate and Xinfeng Microcrystalline Jade in terms of the short-term borrowings totaling
RMB1,230,200,628.56.
b) The Company has obtained short-term borrowings totaling RMB500,000,000.00 from China
Everbright Bank Co., Ltd. Chegongmiao Sub-branch, for which Shenzhen Konka Electronic
Technology Co., Ltd. (a subsidiary of the Company) provides joint and several liability guarantee
at the maximum amount.
c) Konka Chuangtou (a subsidiary of the Company) has obtained short-term borrowings totaling
RMB7,250,000.00 from the Bank of Hangzhou Co., Ltd. Shenzhen Keji Sub-branch, for which
Shenzhen SME Financing Guarantee Co., Ltd. and Shenzhen High-tech Investment and
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Konka Group Co., Ltd. Interim Report 2021
Financing Guarantee Co., Ltd. both provide guarantee.
d) Econ Technology (a subsidiary of the Company) has obtained short-term borrowings totaling
RMB62,322,483.01 from the Industrial Bank Co., Ltd. Yantai Development Zone Sub-branch, for
which the Company provides joint and several liability guarantee at the maximum amount.
e) The Company has obtained short-term borrowings totaling RMB347,135,000.00 from
Shenzhen Branch, China Zheshang Bank Co., Ltd., with the Company's bank deposits amounting
to RMB47,140,000.00 as pledge.
f) The Company has obtained short-term borrowings totaling USD6,552,788.00 (equivalent to
RMB42,331,665.76) from the Agricultural Bank of China Co., Ltd. Haqiaocheng Sub-branch,
with a certificate of time deposit amounting to USD6,548,221.08 as pledge.
g) Anhui Konka (a subsidiary of the Company) has obtained short-term borrowings totaling
RMB150,000,000.00 from Chuzhou Branch, Bank of China Limited, with a land use right worth
RMB55,369,010.66 (book value) and the construction in progress worth RMB317,974,560.85 as
pledge, for which the Company provides joint and several liability guarantee.
h) Anhui Tongchang (a subsidiary of the Company) has obtained short-term borrowings totaling
RMB78,000,000.00 from Hefei Branch, China Zheshang Bank Co., Ltd., with a building worth
RMB152,555,215.06 (book value) and a land use right worth RMB18,676,491.11 as pledge.
i) Bokang Precision Electronics (a subsidiary of the Company) has obtained short-term
borrowings totaling RMB5,000,000.00 from Guangdong Boluo Rural Commercial Bank Co., Ltd.
Tangquan Sub-branch, with a building of Boluo Konka worth RMB1,292,009.75 (book value) as
pledge.
j) Jiangsu Kangjia Intelligent Electric Appliance (a subsidiary of the Company) has obtained
short-term borrowings totaling RMB30,000,000.00 from China Zheshang Bank Co., Ltd.
Changzhou Wujin Sub-branch, with a building worth RMB42,136,390.95 (book value) and a land
use right worth RMB14,924,162.24 as pledge.
k) Shanghai Konka (a subsidiary of the Company) has obtained short-term borrowings totaling
1,568,925.58 from Yantai Rural Commercial Bank Co., Ltd., with an investment property worth
10,882,570.03 in Yantai Konka Mega-Health Industrial Park as pledge.
l) Xingda Hongye (a subsidiary of the Company) has obtained short-term borrowings totaling
95,000,000.00 from Zhongshan Rural Commercial Bank Co., Ltd., with a certificate of time
deposit amounting to RMB19,800,000.00 (book value), a building worth RMB39,196,058.38 and
a land use right worth RMB14,283,458.30 as pledge, for which Hu Zehong provides joint and
several liability guarantee.
27. Notes Payable
Category Ending balance Beginning balance
Bank’s acceptance bill 932,200,721.04 1,159,251,569.31
Commercial acceptance bill 151,826,838.52 176,735,456.90
Total 1,084,027,559.56 1,335,987,026.21
28. Accounts Payable
(1) List of Accounts Payable
Item Ending balance Beginning balance
Within 1 year 8,606,110,762.20 8,134,924,659.58
1 to 2 years 1,054,960,597.01 1,279,766,515.39
2 to 3 years 60,512,729.21 87,184,184.40
Over 3 years 120,970,653.90 130,490,966.39
Total 9,842,554,742.32 9,632,366,325.76
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Konka Group Co., Ltd. Interim Report 2021
(2) Significant Accounts Payable Aging over One Year
Item Unpaid/Un-carry-over
Ending balance
reason
Hunan Fifth Engineering Co. 589,525,468.50 Not meet the settlement
Ltd conditions
China Railway No. 4 243,280,667.40 Not meet the settlement
Engineering Group Co., Ltd. conditions
Chongqing Jiulong Kuiguan 112,851,020.43 Not meet the settlement
Building Materials Co., Ltd. conditions
Henan Yaofeng Industrial Co., 98,891,330.28 Not meet the settlement
Ltd. conditions
96,558,100.00 Not meet the settlement
Rushan Water Group Co., Ltd.
conditions
Total 1,141,106,586.61 —
29. Contractual liabilities
(1) Details of Contractual liabilities
Item Ending balance Beginning balance
Sales advances received 809,414,528.15 1,217,367,735.94
Total 809,414,528.15 1,217,367,735.94
(2) There is no significant change in carrying value of contractual liabilities in the current period
30. Payroll Payable
(1) List of Payroll Payable
Item Beginning Increased Decreased Ending balance
balance
List of Short-term Salary 473,200,796.84 715,153,156.86 958,964,772.15 229,389,181.55
Post-employment
benefit-defined contribution 2,283,275.82 62,184,560.57 63,705,222.00 762,614.39
plans
Termination benefits 1,132,171.79 5,409,163.52 5,507,213.52 1,034,121.79
Current portion of other
benefits
Total 476,616,244.45 782,746,880.95 1,028,177,207.67 231,185,917.73
(2) List of Short-term Salary
Beginning
Item Increased Decreased Ending balance
balance
Salary, bonus,
458,065,525.46 623,838,432.88 871,495,866.00 210,408,092.34
allowance, subsidy
Welfare for
1,003,285.92 29,776,459.67 25,772,705.01 5,007,040.58
employees
Social security 30,132,787.04 4,539,686.05
4,887,689.95 29,784,783.14
expense
Of which: Medical 26,598,717.72 712,285.65
1,257,574.78 26,053,428.59
insurance premiums
Work-related 1,283,122.70 57,975.39
87,286.29 1,253,811.80
injury insurance
Maternity 2,250,946.62 3,769,425.01
3,542,828.88 2,477,542.75
insurance
Housing fund 1,494,931.38 19,778,390.39 20,936,346.94 336,974.83
182
Konka Group Co., Ltd. Interim Report 2021
Beginning
Item Increased Decreased Ending balance
balance
Labor union budget
and employee 7,283,186.41 5,600,920.29 3,786,718.95 9,097,387.75
education budget
Short-term absence
with payment
Short-term profit
sharing plan
Others 466,177.72 6,374,170.49 6,840,348.21
Total 473,200,796.84 715,153,156.86 958,964,772.15 229,389,181.55
(3) List of Defined Contribution Plan
Item Beginning Increased Decreased Ending balance
balance
Basic pension 62,119,767.22 680,421.65
2,188,388.21 60,611,800.66
benefits
Unemployment 1,560,846.78 82,192.74
94,887.61 1,548,151.91
insurance
Annuity 24,608.00 24,608.00
Total 2,283,275.82 62,184,560.57 63,705,222.00 762,614.39
31. Taxes Payable
Item Ending balance Beginning balance
Corporate income tax 197,432,879.87 264,749,734.19
VAT 97,813,733.02 186,891,111.62
Fund for disposing abandoned 17,712,383.00 19,157,745.00
appliances and electronic products
Urban maintenance and construction tax 1,186,363.33 10,206,690.62
Education fees and local education 940,271.07 7,361,219.22
Surcharge
Stamp duty 4,046,396.15 6,041,179.34
Land use tax 8,091,073.30 5,095,730.68
Individual income tax 5,600,555.35 3,023,518.75
Property tax 3,103,108.53 2,209,076.63
Tariff 1,922,353.13 2,008,914.61
Others 1,197,527.24 1,469,138.50
Total 339,046,643.99 508,214,059.16
32. Other payables
Item Ending balance Beginning balance
Interest payable 214,023,683.45 220,837,380.17
Other Payables 1,432,727,668.74 1,770,718,506.93
Total 1,646,751,352.19 1,991,555,887.10
32.1. Interests payable
(1) Classification
Item Ending balance Beginning balance
183
Konka Group Co., Ltd. Interim Report 2021
Item Ending balance Beginning balance
Interest on corporate bonds 124,958,666.67 180,268,944.49
Interest on long-term borrowings
with interest paid by installment and 49,915,175.34 17,162,676.76
principal paid at maturity
Interest payable on short-term
39,095,155.47 23,350,524.40
borrowings
Others 54,685.97 55,234.52
Total 214,023,683.45 220,837,380.17
32.2 Other payables
(1) Listed by Nature of Account
Item Ending balance Beginning balance
Expenses payable 605,129,775.36 626,909,820.31
Come-and-go money 164,595,180.37 323,092,770.74
Equity transfer payment 67,482,796.96 157,682,796.96
Related party borrowing 295,208,444.71 344,520,800.92
Cash deposit and front 246,561,064.97 243,197,538.56
Advance payment 11,496,087.32 7,795,410.38
Others 42,254,319.05 67,519,369.06
Total 1,432,727,668.74 1,770,718,506.93
(2) Other Significant Payables Aging over One Year
Item Unpaid/Un-carry-over
Ending balance
reason
61,180,000.00 Not meet the settlement
Equity transfer money of Jiangxi Konka
conditions
Total 61,180,000.00
33. Current Portion of Non-current Liabilities
Item Ending balance Beginning balance
Current portion of long-term borrowings 2,090,919,000.00 18,150,000.00
Current portion of long-term payables 209,741,731.57 358,746,566.29
Current portion of lease liabilities 26,523,807.12 48,656,098.14
Current portion of bonds payables 2,000,000,000.00
Total 4,327,184,538.69 425,552,664.43
34. Other current liabilities
Item Ending balance Beginning balance
Accounts payable with trade acceptance
notes 199,491,442.79 432,420,000.00
Others 13,158,576.93 9,354,317.23
Total 212,650,019.72 441,774,317.23
35. Long-term Borrowings
Item Ending balance Beginning balance Description
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Konka Group Co., Ltd. Interim Report 2021
Guaranteed borrowings 2,356,260,000.00 2,058,000,000.00 ①②③
④⑤⑥⑦⑧⑨⑩
Pledge borrowings 4,824,624,148.48 3,123,838,997.54
Entrusted borrowings 2,611,060,000.00 611,060,000.00
Credit loan 180,000,000.00 190,000,000.00
Less: Current portion 2,090,919,000.00 18,150,000.00
Total 7,881,025,148.48 5,964,748,997.54
Notes: a) The Company has obtained long-term borrowings amounting to RMB2,000,000,000.00 from
the Export-Import Bank of China, and the term thereof is from 22 June 2020 to 24 June 2022. The
OCT Group (parent company of the Company) provides joint and several liability guarantee at the
maximum amount.
b) The Company has obtained long-term borrowings amounting to RMB300,000,000.00 from
Shenzhen Branch, China Guangfa Bank Co., Ltd., and the term thereof is from 24 June 2021 to 23
June 2024, for which the OCT Group (parent company of the Company) provides joint and several
liability guarantee at the maximum amount.
c) Xingda Hongye (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB56,260,000.00 from Zhuhai Branch, Xiamen International Bank Co., Ltd., and the term thereof is
from 25 November 2020 to 25 February 2022, for which the Company provides joint and several
liability guarantee at the maximum amount.
d) The Company has obtained long-term borrowings amounting to RMB341,847,132.95 from
Shenzhen Rural Commercial Bank Co., Ltd. Guanlan Sub-branch, with a land use right worth
RMB5,220,441.48 (book value), an investment property worth RMB121,018,537.96 (book value) and
a building worth RMB71,008,186.14 (book value) as pledge, and the term thereof is from 22 January
2021 to 22 January 2026.
e) Dongguan Konka (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB15,000,000 from the Agricultural Bank of China Co., Ltd. Dongguan Fenggang Sub-branch, with
the land use right of Fenggang Kongka Intelligent Industrial Park worth RMB196,005,772.67 (book
value) as pledge, and the term thereof is from 23 June 2021 to 7 May 2031.
f) Sichuan Konka (a subsidiary of the Company) has obtained entrusted borrowings amounting to
RMB100,000,000.00 from Sichuan Gangrong Investment Development Group Co., Ltd. Yibin Konka
Technology Industrial Park (a subsidiary of the Company) provides pledge (a land use right worth
RMB4,678,863.20 (book value) and an investment property worth RMB8,711,687.32 (book value)),
and Communication Technology provides joint and several liability guarantee for the aforesaid
entrusted borrowings. The term of the entrusted borrowings is from 28 May 2018 to 24 May 2025.
g) Rushan Yike (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB113,210,000 from China Everbright Bank Co., Ltd. Yantai Economic Development Zone
Sub-branch with the long-term receivables involved in Rushan Silver Beach Water Supply and
Drainage PPP Project worth RMB350,937,230.14 as pledge (the term thereof is from 29 December
2016 to 28 December 2026), for which Yikang Technology (a subsidiary of the Company) provides
joint and several liability guarantee.
h) Dayi Kangrun Water Affairs (a subsidiary of the Company) has obtained long-term borrowings
amounting to RMB266,200,000.00 from the Industrial and Commercial Bank of China Co., Ltd.
Chengdu Qinglong Sub-branch with the franchise earning right involved in Dayi County Industrial
Sewage and Reclaimed Water Treatment Plant Construction Project amounting to
RMB1,000,000,000.00 as pledge (the term thereof is from 29 April 2020 to 10 April 2035), for which
Econ Technology (a subsidiary of the Company) provides a letter of commitment to make up for any
difference.
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Konka Group Co., Ltd. Interim Report 2021
i) Fu'nan Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB465,000,000.00 from the Agricultural Development Bank of China Funan County Sub-branch
with the feasibility gap subsidies and government payments under the PPP Project of Whole-region
Sewage Governance in Funan County as pledge, and the term thereof is from 23 August 2019 to 22
August 2039.
j) Weifang Sihai (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB619,155.900.00 from the Industrial Bank Co., Ltd. Weifang Sub-branch with the accounts
receivable under the contract of Weifang Central Urban Area Comprehensive Upgrading Project as
pledge, and the term thereof is from 26 June 2019 to 25 June 2035.
k) Weifang Sihai (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB42,700,000.00 from China Construction Bank Co., Ltd. with the accounts receivable under the
contract of Weifang Central Urban Area Comprehensive Upgrading Project as pledge, and the term
thereof is from 28 May 2021 to 25 June 2035.
l) Laizhou Lairun (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB162,583,906.57 from the Postal Savings Bank of China Co., Ltd. Laizhou Sub-branch with the
accounts receivable arising from all relevant earnings and earning rights under the contract of the PPP
Project of the Second Sewage Treatment Plant in Laizhou City and relevant supplementary
agreements as pledge, and the term thereof is from 17 January 2020 to 16 January 2040.
m) Tongchuan Kangrun Honghui (a subsidiary of the Company) has obtained long-term borrowings
amounting to RMB30,000,000.00 from Tongchuan Branch, China Construction Bank Co., Ltd. with
the accounts receivable agreed in relevant project income (including sewage treatment service fees,
garbage collection & delivery service fees and feasibility gap subsidiaries) terms of the PPP Project of
Ecological Conservation and Restoration for Mountains, Rivers, Forests, Farmlands and Lakes in
Yintai District, Tongchuan City, Especially Qishui River and Its Surrounding Areas, A National Pilot
Project Regarding Mountains, Rivers, Forests, Farmlands and Lakes signed with the Water Authority
in Yintai District, Tongchuan City as pledge, and the term thereof is from 25 March 2021 to 24 March
2035.
n) Lushan Kangrun Environment (a subsidiary of the Company) has obtained long-term borrowings
amounting to RMB250,000,000.00 from Henan Branch, China Development Bank with the accounts
receivable under the contract of the PPP Project of Ecological Restoration and Improvement for Shahe
River in Lushan County (Phase I) as pledge, and the term thereof is from 16 April 2021 to 15 April
2037.
o) Donggang Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting
to RMB828,000,000.00 from China Construction Bank Co., Ltd. Donggang Sub-branch with the
accounts receivable under the contract of the PPP Project of Comprehensive Governance on Inland
Rivers in Donggang City as pledge, and the term thereof is from 31 January 2019 to 30 January 2036.
p) Suining Pengxi Kangrun (a subsidiary of the Company) has obtained long-term borrowings
amounting to RMB37,210,337.99 from the Industrial and Commercial Bank of China Co., Ltd. Pengxi
Sub-branch with the accounts receivable under the contract of the PPP Project of Urban Sewage
Treatment Plant in Suining Jinqiao New Area as pledge, and the term thereof is from 4 June 2021 to 3
January 2035.
q) Subei Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB776,000,000.00 from the Agricultural Development Bank of China Dunhuang Sub-branch with
the accounts receivable under the contract of the PPP Project of Water Supply for Mazongshan Town,
Subei Mongol Autonomous County, Gansu Province as pledge (the term thereof is from 10 March
2020 to 9 March 2035), for which Econ Technology (a subsidiary of the Company) provides joint and
several liability guarantee.
r) Mengcheng Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting
to RMB160,000,000.00 from the Agricultural Development Bank of China Mengcheng County
Sub-branch with the prospective earnings from the PPP Project of Comprehensive Governance on
Water Environment in Mengcheng County, Anhui Province as pledge, and the term thereof is from 27
186
Konka Group Co., Ltd. Interim Report 2021
January 2021 to 26 January 2038.
s) Xi'an Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB150,996,870.97 from China Construction Bank Co., Ltd. Xi'an Gaoling District Jinghuannanlu
Sub-branch with all relevant earnings and earning rights involved in the Franchise Project of Kitchen
Garbage Treatment in Gaoling District, Xi'an City as pledge, and the term thereof is from 1 February
2021 to 31 January 2036.
t) Wuhan Runyuan (a subsidiary of the Company) has obtained long-term borrowings amounting to
RMB466,720,000.00 from the Agricultural Development Bank of China (ADBC) Wuhan Dixihu
District Sub-branch with the accounts receivable under the contract of the PPP Project of Integrated
Governance on Township Domestic Sewage in Huangpi District (the term thereof is from 22 January
2020 to 19 January 2040), for which Econ Technology (a subsidiary of the Company) provides a letter
of commitment to make up for any difference.
u) The OCT Group (parent company of the Company) has issued an entrusted loan of
RMB2,611,060,000.00 to the Company via China Merchants Bank Co., Ltd. The term of the loan is
from 7 December 2020 to 25 February 2024.
36. Bonds Payable
(1) List of Bonds Payable
Item Ending balance Beginning balance
Non-public offering corporate
bonds 4,992,708,333.32 4,993,212,788.32
Less: Current portion of bonds
2,000,000,000.00
payable
Total 2,992,708,333.32 4,993,212,788.32
(2) Increase/Decrease of Bonds Payable
Issuing Duratio
Bonds name Total par value Issuing amount Beginning balance
date n
19Konka01 (note ①) 2+1
1,000,000,000.00 2019-1-14 years 996,500,000.00 998,899,371.13
19Konka02 (note ②) 1,500,000,000.00 2019-1-14 3 years 1,494,750,000.00 1,498,349,056.69
19Konka03 (note ③) 2+1
500,000,000.00 2019-6-3 years 498,250,000.00 499,220,387.86
19Konka04 (note ④) 500,000,000.00 2019-6-3 3 years 498,250,000.00 499,220,387.86
19Konka05 (note ⑤) 2+1
800,000,000.00 2019-7-22 years 797,200,000.00 798,679,245.24
19Konka06 (note ⑥) 700,000,000.00 2019-7-22 3 years 697,550,000.00 698,844,339.54
21Konka01（note⑦） 1,000,000,000.00 2021-1-8 3 years 996,500,000.00
21Konka02（note⑧） 500,000,000.00 2021-5-21 3 years 498,250,000.00
Total 6,500,000,000.00 6,477,250,000.00 4,993,212,788.32
(Continued)
Amortizatio
Issued during Withdraw n of Repay during
Bonds name the Reporting interest at face premium the Reporting Ending balance
Period value and Period
discount
19Konka01
1,249,999.96 1,100,628.87 1,000,000,000.00 -
(note ①)
19Konka02
36,250,000.02 825,471.72 1,499,174,528.41
(note ②)
187
Konka Group Co., Ltd. Interim Report 2021
Amortizatio
Issued during Withdraw n of Repay during
Bonds name the Reporting interest at face premium the Reporting Ending balance
Period value and Period
discount
19Konka03
9,250,000.00 779,612.14 500,000,000.00 -
(note ③)
19Konka04
11,619,444.45 275,157.24 499,495,545.10
(note ④)
19Konka05
17,616,666.65 440,251.56 799,119,496.80
(note ⑤)
19Konka06
15,993,055.53 385,220.10 699,229,559.64
(note ⑥)
21Konka01
996,500,000.00 21,432,777.79 748,427.69 997,248,427.69
（note⑦）
21Konka02
498,250,000.00 2,277,777.78 190,775.68 498,440,775.68
（note⑧）
Total 1,494,750,000.00 115,689,722.18 4,745,545.00 1,500,000,000.00 4,992,708,333.32
Note 1: ① On 14 January 2019, RMB 1 billion of private placement corporate bonds was issued
with the duration of two plus one years, the annual interest rate of 5.00% and the due date of 14
January 2021. "19 Konka 01" has been fully sold back and delisted from the exchange on 14
January 2021.
② On 14 January 2019, RMB 1.5 billion of private placement corporate bonds was issued with
the duration of three years, the annual interest rate of 5.00% and the due date of 14 January 2022.
③ On 3 June 2019, RMB 0.5 billion of private placement corporate bonds was issued with the
duration of two plus one years, the annual interest rate of 4.50% and the due date of 3 June 2021.
"19 Konka 03" has been fully sold back and delisted from the exchange on 3 June 2021.
④ On 15 January 2019, RMB 0.5 billion of private placement corporate bonds was issued with
the duration of three years, the annual interest rate of 4.70% and the due date of 3 June 2022.
⑤ On 22 July 2019, RMB 0.8 billion of private placement corporate bonds was issued with the
duration of two plus one years, the annual interest rate of 4.53% and the due date of 22 July 2021.
⑥ On 22 July 2019, RMB 0.7 billion of private placement corporate bonds was issued with the
duration of three years, the annual interest rate of 4.70% and the due date of 22 July 2022.
⑦ On 8 January 2021, RMB 1 billion of private placement corporate bonds was issued with the
duration of three years, the annual interest rate of 4.46% and the due date of 8 January 2024.
⑧ On 21 May 2021, RMB 0.5 billion of private placement corporate bonds was issued with the
duration of three years, the annual interest rate of 4.00% and the due date of 21 May 2024.
Note 2: OCT Group provided full-amount, unconditional and irrevocable joint and several
liability guarantee for the due payment of the private offering of corporate bonds.
37. Lease Liabilities
Item Ending balance Beginning balance
Lease liabilities 95,307,955.33 110,388,195.06
Less: Current portion 26,523,807.12 48,656,098.14
188
Konka Group Co., Ltd. Interim Report 2021
Total 68,784,148.21 61,732,096.92
38. Long-term Payables
(1) List by nature
Item Ending balance Beginning balance
Accrued financing lease outlay 737,150,003.99 921,958,930.55
Of which: unrecognized financing
55,473,934.22 81,802,514.30
expense
Less: Current portion 209,741,731.57 358,746,566.29
Total 471,934,338.20 481,409,849.96
39. Long-term Payroll Payable
Classification
Item Ending balance Beginning balance
Termination benefits-net liabilities of
5,178,477.38 5,248,309.14
defined contribution plans
Total 5,178,477.38 5,248,309.14
40. Provisions
Item Ending balance Beginning balance Reason for formation
After-sales of household
Product quality assurance 106,468,978.52 102,146,976.40 appliances
Others 206,591.51 206,591.51
Total 106,675,570.03 102,353,567.91
189
Konka Group Co., Ltd. Interim Report 2021
41. Deferred Income
(1) Category of Deferred Income
Item Beginning balance Increased Decreased Reason for
Ending balance
formation
Government Asset-related/in
subsidies 446,900,524.64 35,513,702.05 261,258,151.57 221,156,075.12 come related
Total 446,900,524.64 35,513,702.05 261,258,151.57 221,156,075.12
(2) Government subsidy
Amount
charged to Amount charged
Beginning New amount in Asset/income
List of Government Subsidy non-operating to other income Other changes Ending balance
balance the period -related
income in the in the period
period
与资产/收益
Industry support funds 322,011,927.27 3,514,025.05 230,394,777.52 95,131,174.80
相关
government special subsidy for
projects 30,000,000.00 10,000,000.00 40,000,000.00 与收益相关
UHD display chip research and
development and industrialization 20,000,000.00 20,000,000.00 与资产相关
project
Equipment subsidy 11,457,800.00 11,457,800.00 与资产相关
与资产/收益
Other subsidies 74,888,597.37 10,541,877.00 17,563,374.05 13,300,000.00 54,567,100.32
相关
Total 446,900,524.64 35,513,702.05 247,958,151.57 13,300,000.00 221,156,075.12
190
Konka Group Co., Ltd. Interim Report 2021
42. Other non-current liabilities
Item Ending balance Beginning balance
Contract obligations over one year 83,705,786.99 106,475,449.02
Total 83,705,786.99 106,475,449.02
43. Share capital
Increase/decrease (+/-)
Bon Bonus
Item Beginning balance New Ending balance
us issue Oth Subto
shares
sha from ers tal
issued
res profit
Total shares 2,407,945,408.00 2,407,945,408.00
Total 2,407,945,408.00 2,407,945,408.00
44. Capital Reserves
Item Beginning balance Increased Decreased Ending balance
Share capital
premium 6,702,019.17 6,702,019.17
Other capital reserves 230,185,310.09 2,671,625.35 227,513,684.74
Total 230,185,310.09 6,702,019.17 2,671,625.35 234,215,703.91
Note: Due to the disposal of the associates Konka Green and Konka Technology in the current
period, other capital reserves decreased by RMB 2,671,625.35. Due to the repurchase of minority
shareholders' equity in subsidiary Xinying Semiconductor, the capital reserve (share capital
premium) increased by RMB 6,702,019.17.
191
Konka Group Co., Ltd. Interim Report 2021
45. Other Comprehensive Income
Reporting Period
Less: Less: Recorded in
Recorded in other
other comprehensive
comprehensive income in prior
Beginning Less: Attributable to
Item Income before income in period and Attributable to Ending balance
balance Income owners of the
taxation in the prior period transferred in non-controlling
tax Company as the
Current Period and retained earnings interests after tax
expense parent after tax
transferred in in the Current
profit or loss in Period
the Current
Period
I. Items that will not be
reclassified to profit or -6,398,878.20 -6,398,878.20
loss
Changes in fair value
of other equity instrument -6,398,878.20 -6,398,878.20
investment
Others
II. Items that will be
reclassified to profit or -10,184,164.22 -1,547,270.99 -583,043.66 -964,227.33 -10,767,207.88
loss
Of which: Other
comprehensive income
that will be reclassified to -2,397,350.96 1,486,086.18 1,486,086.18 -911,264.78
profit or loss under the
equity method
Differences arising
-7,786,813.26 -3,033,357.17 -2,069,129.84 -964,227.33 -9,855,943.10
from the translation of
192
Konka Group Co., Ltd. Interim Report 2021
Reporting Period
Less: Less: Recorded in
Recorded in other
other comprehensive
comprehensive income in prior
Beginning Less: Attributable to
Item Income before income in period and Attributable to Ending balance
balance Income owners of the
taxation in the prior period transferred in non-controlling
tax Company as the
Current Period and retained earnings interests after tax
expense parent after tax
transferred in in the Current
profit or loss in Period
the Current
Period
foreign currency
denominated financial
statements
Total Other
Comprehensive Income -16,583,042.42 -1,547,270.99 -583,043.66 -964,227.33 -17,166,086.08
193
Konka Group Co., Ltd. Interim Report 2021
46. Surplus Reserves
Item Beginning balance Increased Decreased Ending balance
Statutory surplus
973,502,519.62 973,502,519.62
reserves
Discretional
238,218,590.05 238,218,590.05
surplus reserves
Total 1,211,721,109.67 1,211,721,109.67
47. Retained Earnings
Item Reporting Period Same period of last
year
Ending balance of last year 4,595,371,391.63 4,239,763,606.89
Add: Total beginning balance of retained earnings
before adjustments
Of which: change of accounting policy
Other adjustment factors
Beginning balance of the Reporting Period 4,595,371,391.63 4,239,763,606.89
Add: Net profit attributable to owners of the Company 85,449,919.57 477,633,250.14
as the parent
Retained incomes carried forward from other
comprehensive income -1,628,195.00
Less: Withdrawal of statutory surplus reserves
Withdrawal of discretional surplus reserves
Dividend of ordinary shares payable 240,794,540.80 120,397,270.40
Ending balance of this period 4,440,026,770.40 4,595,371,391.63
48. Operating Revenue and Cost of Sales
(1) Operating Revenue and Cost of Sales
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main
21,412,726,539.67 20,510,002,960.62 17,233,552,849.87 16,069,773,569.48
operations
Other
397,435,333.41 307,172,753.16 290,631,046.87 199,219,863.40
operations
Total 21,810,161,873.08 20,817,175,713.78 17,524,183,896.74 16,268,993,432.88
(2) Main Operations (Classified by product)
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Supply
chain
trading 12,184,495,984.54 12,079,110,369.50 9,566,197,970.86 9,423,055,276.96
business
Color TV
business 3,190,601,881.06 3,017,183,364.20 3,218,278,547.14 2,742,839,819.16
Environmen
tal 2,724,186,133.96 2,439,448,446.23 1,498,623,593.33 1,337,882,701.47
protection
194
Konka Group Co., Ltd. Interim Report 2021
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
business
Consumer
appliances 1,752,194,252.46 1,608,490,566.46 1,918,628,399.97 1,650,949,066.11
business
Semi-condu
ctor 241,973,760.06 229,060,263.71 223,849,167.50 213,510,864.28
business
Others 1,319,274,527.59 1,136,709,950.52 807,975,171.07 701,535,841.50
Total 21,412,726,539.67 20,510,002,960.62 17,233,552,849.87 16,069,773,569.48
49. Taxes and Surtaxes
Item Reporting Period Same period of last year
Stamp duty 17,210,974.34 7,525,016.46
Urban maintenance and construction tax 5,272,168.22 4,563,133.76
Land use tax 12,591,947.22 7,726,576.91
Property tax 4,521,990.47 4,474,412.24
Education surcharge 2,252,651.83 2,110,616.64
Local education surcharge 1,295,806.68 1,407,025.70
Water resources fund 98,737.91 75,715.03
Others 1,212,085.27 1,301,943.62
Total 44,456,361.94 29,184,440.36
50. Selling Expense
Item Reporting Period Same period of last year
Payroll 179,194,691.52 206,209,082.36
Advertising expense 143,443,247.26 269,906,176.77
Logistic Fee 57,131,056.01 186,463,203.90
Promotional activities 93,916,189.20 109,821,424.32
Warranty fee 95,238,254.77 84,742,647.02
Taxes and fund 26,084,857.60 26,313,964.00
Business travel charges 9,695,834.71 8,381,930.49
Rental charges 13,812,228.32 13,266,655.00
Exhibition expenses 2,675,578.55 7,513,097.13
Business entertainment expenses 6,473,826.73 4,916,413.21
Others 39,996,271.80 51,689,787.78
Total 667,662,036.47 969,224,381.98
51. Administrative Expense
Item Reporting Period Same period of last year
195
Konka Group Co., Ltd. Interim Report 2021
Item Reporting Period Same period of last year
Payroll 172,124,998.88 177,373,892.49
Depreciation charge 55,861,222.66 80,326,472.49
Intermediary fees 24,599,241.61 64,645,576.61
Business travel charges 8,275,347.12 4,551,426.46
Loss on scraping of inventories 2,246,719.29 3,077,371.04
Water & electricity fees 5,392,545.21 4,831,271.94
Others 90,553,592.30 106,109,769.41
Total 359,053,667.07 440,915,780.44
52. R&D Expense
Item Reporting Period Same period of last year
Salary 141,474,094.27 138,480,765.54
Others 143,189,372.99 119,568,820.75
Total 284,663,467.26 258,049,586.29
53. Finance Costs
Item Reporting Period Same period of last year
Interest expense 488,330,464.76 532,953,584.28
Less: Interest income 78,303,181.42 124,261,830.72
Add: Exchange loss 28,226,971.34 -64,612,997.78
Other 21,161,528.03 42,962,110.97
Total 459,415,782.71 387,040,866.75
54. Other Income
Resources Reporting Period Same period of last year
Support fund 342,585,919.00 147,152,074.00
Transfer of deferred income 247,958,151.57 22,399,161.10
Rewards and subsidies 116,820,277.53 108,968,284.81
Land tax rebates 4,728,544.03 7,197,234.18
Software tax rebates 6,085,265.89 15,323,154.27
Post subsidies 2,426,398.00 13,633,750.07
L/C export subsidy 91,800.00 2,990,537.00
Others 430,656.91
Total 720,696,356.02 318,094,852.34
55. Investment Income
Item Reporting Period Same period of last year
Long-term equity investment income
19,335,816.88 49,858,252.47
measured by equity method
Investment income from disposal of
177,579,605.00 454,470,348.72
long-term equity investment
196
Konka Group Co., Ltd. Interim Report 2021
Item Reporting Period Same period of last year
Investment income from disposal of
3,405,333.03
held-for-trading financial assets
Income from remeasurement of
residual stock rights at fair value after 68,185,019.88 23,788,733.72
losing control power
Interest income from holding of debt
34,566,759.25 37,286,956.28
investments
Income from entrusted wealth
29,883,952.37
management, entrusted loans
Investment income from disposal of
financial assets at fair value through 22,577,111.88
current profit or loss
Total 322,244,312.89 598,693,576.59
56. Gain on Changes in Fair Value
Sources Reporting Period Same period of last
year
Trading financial assets 3,691,020.84
Of which: gain on changes in fair value of
derivative financial instruments
Other non-current financial assets 36,671,492.89
Total 40,362,513.73
57. Credit Impairment Loss
Item Reporting Period Same period of last year
Loss on bad debts of notes receivable 19,146,640.03 891,406.18
Bad debt losses of accounts receivable -64,007,725.46 -35,516,049.10
Bad debt losses of other receivables -26,531,092.63 -9,133,606.38
Bad debt loss of prepayment 4,506,841.30
Bad debt loss of contract assets -636,099.18
Total -71,392,178.06 -39,887,507.18
58. Asset Impairment Loss
Item Reporting Period Same period of last year
Inventory depreciation loss and
contract performance cost impairment -10,573,236.91 -1,985,659.95
loss
Contractual Asset Impairment Loss -18,965,495.91
Total -29,538,732.82 -1,985,659.95
59. Asset Disposal Income (“－” for loss)
Amount recorded
Same period of last in the current
Item Reporting Period
year non-recurring
profit or loss
197
Konka Group Co., Ltd. Interim Report 2021
Amount recorded
Same period of last in the current
Item Reporting Period
year non-recurring
profit or loss
Incomes from disposal of disposal
groups held for sale
Incomes from disposal of
non-current assets 88,668.35 98,454,282.86 88,668.35
Including: incomes from
disposal of non-current assets not 88,668.35 98,454,282.86 88,668.35
classified as the held-for-sale assets
Of which: Fixed assets disposal
income 88,668.35 -145,717.14 88,668.35
Intangible assets disposal
98,600,000.00
income
Total 88,668.35 98,454,282.86 88,668.35
60. Non-operating Income
(1) List of Non-operating Income
Amount recorded
Same Period of last in the current
Item Reporting Period
year non-recurring
profit or loss
Insurance indemnity 12,736,400.00 12,736,400.00
Non-current assets damage and
237,884.42 237,884.42
retirement gains
Compensation and penalty income 1,884,536.59 1,480,648.26 1,884,536.59
Government subsidies unrelated to
the normal operation of the 3,000,000.00
Company
Gains on debt restructuring 544,827.07 377,094.96 544,827.07
Other 6,214,629.71 3,804,030.26 6,214,629.71
Total 21,618,277.79 8,661,773.48 21,618,277.79
61. Non-operating Expense
Amount
recorded into the
Same Period of
Item Reporting Period current
last year
non-recurring
profit or loss
Losses on damage and scraping 437,270.73 867,633.27 437,270.73
of non-current assets
Compensation expense 161,680.10 161,680.10
Others 6,194,922.31 6,269,242.08 6,194,922.31
Total 6,793,873.14 7,136,875.35 6,793,873.14
62. Income Tax Expense
(1) Lists of Income Tax Expense
198
Konka Group Co., Ltd. Interim Report 2021
Item Reporting Period Same period of last
year
Current income tax expense 192,219,793.73 62,167,085.67
Deferred income tax expense -107,956,525.36 11,258,436.80
Total 84,263,268.37 73,425,522.47
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Item Reporting Period
Profit before taxation 175,020,188.61
Current income tax expense accounted at
43,755,047.15
statutory/applicable tax rate
Influence of applying different tax rates by subsidiaries 596,097.16
Influence of income tax before adjustment 25,532,149.88
Influence of non-taxable income -28,842,890.50
Influence of not deductable costs, expenses and losses 3,181,788.78
Influence of deductable loss of unrecognized deferred
-3,070,599.55
income tax assets in prior period
Influence of deductable temporary difference or
deductable losses of unrecognized deferred income tax in 61,106,584.81
the Reporting Period
Changes in the balance of deferred income tax assets/
-4,100,883.59
liabilities in previous period due to adjustment of tax rate
Other -13,894,025.77
Income tax expense 84,263,268.37
63. Other Comprehensive Income
Refer to “Note VI-45. Other Comprehensive Income” for details.
64. Cash Flow Statement
(1) Cash Generated from/Used in Other Operating/Investing/Financing Activities
1) Cash Generated from Other Operating Activities
Item Reporting Period Same Period of last year
Commercial factoring accounts 1,943,522.48 700,909,868.83
received
Intercourse funds 164,755,704.28 46,698,484.01
Income from government subsidy 448,099,427.58 319,790,565.67
Front money and guarantee deposit 279,858,364.93 403,296,224.51
Interest income from bank deposits 37,983,778.15 14,105,927.41
Other 51,992,741.93 583,114,151.39
Total 984,633,539.35 2,067,915,221.82
2) Cash Used in Other Operating Activities
Item Reporting Period Same Period of last year
The commercial factoring payment 700,000,000.00
Expense for cash payment 563,280,960.36 661,630,597.26
199
Konka Group Co., Ltd. Interim Report 2021
Item Reporting Period Same Period of last year
Payment made on behalf 11,499,654.13 10,648,911.81
Payment for guarantee deposit, cash 93,768,423.51 367,885,658.11
deposit
Expense for bank handling charges 5,216,732.77 20,120,952.41
Other 404,575,413.78 229,868,221.99
Total 1,078,341,184.55 1,990,154,341.58
3) Cash Generated from Other Investing Activities
Item Reporting Period Same Period of last year
Recovery of financial products and 303,571,732.31
fixed term deposits
Recovery of entrusted loans 466,367,371.66 905,185,808.83
Other 260,630,141.85
Total 726,997,513.51 1,208,757,541.14
4) Cash Used in Other Investing Activities
Item Reporting Period Same Period of last year
Payment for entrusted loans 174,930,000.00 112,700,000.00
Other 160,869,856.00 40,230,416.99
Total 335,799,856.00 152,930,416.99
5) Cash Generated from Other Financing Activities
Item Reporting Period Same Period of last year
Recovery of margin deposit 197,949,393.49 629,073,059.73
pledged
Lease-related accounts 34,000,000.00 230,602,970.00
Receiving entrusted loans 361,338,700.00 86,200,000.00
Other 2,070,691.00
Total 595,358,784.49 945,876,029.73
6) Cash Used in Other Financing Activities
Item Reporting Period Same Period of last year
Deposit as margin for pledge 161,578,386.94 760,536,005.49
Repayment of entrusted loans 29,400,000.00 101,052.05
Lease-related payments 236,173,947.51 144,556,719.67
Financing cost 18,501,066.06 17,210,477.52
Other 34,551,700.00 111,500,000.00
Total 480,205,100.51 1,033,904,254.73
(2) Supplemental Information for Cash Flow Statement
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
flows generated from operating activities
200
Konka Group Co., Ltd. Interim Report 2021
Supplemental information Reporting Period Same period of last year
Net profit 90,756,920.24 72,244,328.36
Add: Provision for impairment of assets 29,538,732.82 1,985,659.95
Credit impairment loss 71,392,178.06 39,887,507.18
Depreciation of fixed assets, oil-gas assets, 205,328,397.90 150,944,828.97
and productive living assets
Amortization of intangible assets 38,706,987.41 35,300,611.24
Amortization of long-term prepaid expenses 43,983,314.75 50,718,178.66
Losses on disposal of fixed assets, intangible -88,668.35
assets and other long-lived assets (gains: -98,454,282.86
negative)
Losses on scrap of fixed assets (gains: 199,386.31
negative) 738,614.79
Losses on changes in fair value (gains: -40,362,513.73
negative)
Finance costs (gains: negative) 449,599,765.91 498,160,321.15
Investment loss (gains: negative) -322,244,312.89 -598,693,576.59
Decrease in deferred income tax assets (gains: -102,340,668.15 10,226,485.06
negative)
Increase in deferred income tax liabilities (“-” -5,615,859.48
means decrease) -5,187,674.24
Decrease in inventories (gains: negative) -648,533,766.41 -228,342,968.29
Decrease in accounts receivable generated -266,870,721.39
from operating activities (gains: negative) -485,454,160.52
Increase in accounts payable used in operating -580,252,243.46
activities (decrease: negative) -542,846,678.70
Other -247,958,151.57 22,405,878.36
Net cash generated from/used in operating -1,284,761,222.03
activities -1,076,366,927.48
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Transfer of debt to capital
Current portion of convertible corporate bonds
Fixed assets leased in by financing
3. Net increase/decrease of cash and cash
equivalent:
Ending balance of cash 5,159,985,226.06 4,537,905,819.30
Less: beginning balance of cash 4,298,056,113.24 4,493,701,917.22
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents 861,929,112.82 44,203,902.08
(3) Net Cash Receive from Disposal of the Subsidiaries
201
Konka Group Co., Ltd. Interim Report 2021
Item Amount
Cash or cash equivalents received in the Reporting Period from disposal
of subsidiaries in the Current Period 138,930,000.00
Of which: Yantai Kangyun 34,510,000.00
Shenzhen Kangxin Property 104,420,000.00
Less: cash and cash equivalents held by subsidiaries on the date of
losing control power 5,786,319.88
Of which: Yantai Kangyun 420,807.32
Shenzhen Kangxin Property 5,365,512.56
Add: Cash or cash equivalents received in the Reporting Period from
disposal of subsidiaries in the prior period
Net cash received from disposal of subsidiaries 133,143,680.12
(4) Net Cash Paid for Obtaining Subsidiaries
Item Amount
Cash or cash equivalents paid in the Reporting Period for the business
combination occurring in the Reporting Period
Less: cash and cash equivalents held by subsidiaries on the purchase
date
Add: Cash or cash equivalents received in the Reporting Period from
96,500,000.00
disposal of subsidiaries in the prior period
Net cash paid for obtaining subsidiaries 96,500,000.00
(5) Cash and Cash Equivalents
Item Ending balance Beginning balance
Cash 5,159,985,226.06 4,298,056,113.24
Including: Cash on hand 9,534.97 16,052.88
Bank deposit on demand 5,159,975,691.09 4,298,040,060.36
Ending balance of cash and cash
equivalents 5,159,985,226.06 4,298,056,113.24
65. Items in the Statement of Changes in Shareholders' Equity
There is no “other” amount to adjust the amount at the end of the previous year in this period.
66. Assets with Restricted Ownership or Right to Use
Item Ending carrying value Reason for restriction
Among them, RMB543,742,698.80 is margin
deposit, pledge is used for borrowing or issuing bank
acceptance bill, RMB34,559,081.12 is financial
Monetary assets 648,960,499.91
supervision account fund; RMB63,213,179.74 is
fixed deposit that can not be withdrawn in advance;
RMB7,445,540.25 is restricted due to other reasons.
The company pledged bank acceptance bills with a
book value of RMB 693,159,230.21 for
Notes receivable 693,159,230.21 comprehensive financing services such as issuing
bank acceptance bills, letters of credit, guarantees,
and trade finance.
Investment
140,612,795.31 For mortgage loan
property
202
Konka Group Co., Ltd. Interim Report 2021
Item Ending carrying value Reason for restriction
Fixed assets 687,463,055.62 Used for mortgage loan, finance lease and guarantee.
Construction in
317,974,560.85 For mortgage loan
progress
Intangible assets 397,262,395.64 Used for mortgage loan, finance lease and guarantee.
Long-term
350,937,230.14 For pledge loan
receivables
Total 3,236,369,767.68
67. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Ending foreign Ending balance
Item Exchange rate
currency balance converted to RMB
Monetary assets
Of which: USD 84,160,593.16 6.4601 543,685,847.87
EUR 5,936.59 7.6862 45,629.82
EGP 4,721,940.41 0.4125 1,947,800.42
GBP 5.03 8.9410 44.97
HKD 13,267,757.98 0.8321 11,040,101.42
CAD 6.96 5.2097 36.26
PLN 792,726.08 1.7009 1,348,347.79
Accounts receivable
Of which: USD 134,495,088.51 6.4601 868,851,721.28
EUR 22,053.30 7.6862 169,506.07
EGP 18,757,221.24 0.4125 7,737,353.76
GBP 908,052.33 8.9410 8,118,895.88
HKD 1,578,159.97 0.8321 1,313,186.91
AUD 49,764.00 4.8528 241,494.74
Other receivables
Of which: USD 39,323,079.55 6.4601 254,031,026.20
HKD 1,051,222.12 0.8321 874,721.93
YEN 21,400,000.00 0.0584 1,250,359.20
Interest receivable
Of which: USD 25,006.06 6.4601 161,541.65
Short-term borrowings
Of which: USD 84,416,347.52 6.4601 545,338,046.61
Accounts payable
Of which: USD 31,338,417.26 6.4601 202,449,309.34
EGP 8,551,828.67 0.4125 3,527,629.33
203
Konka Group Co., Ltd. Interim Report 2021
Ending foreign Ending balance
Item Exchange rate
currency balance converted to RMB
HKD 21,887,742.19 0.8321 18,212,790.28
Other payables
Of which: USD 3,036,214.29 6.4601 19,614,247.93
EUR 18,240.00 7.6862 140,196.29
EGP 942,604.30 0.4125 388,824.27
HKD 19,172,938.70 0.8321 15,953,802.29
Interest payable
Of which: USD 325,559.34 6.4601 2,103,145.89
(2) Notes to Overseas Entities
The significant overseas entities include Hong Kong Konka, Konka Electrical Appliances
International Trading, Chain Kingdom Memory Technologies, Kangjietong and Jiali International.
The main overseas operating place is Hong Kong. The Company’s recording currency is HKD
since the main currency in circulation in Hong Kong is HKD.
68. Government Subsidy
(1) Basic Information on Government Subsidy
Amount recorded in
Category Amount Listed items the current profit or
loss
Industry support funds 346,099,944.05 Other income 342,598,292.32
Rewards and subsidies 153,816,620.53 Other income 117,218,675.79
Tax rebates on software 6,085,265.89 Other income 6,085,265.89
Land tax rebates 4,728,566.18 Other income 4,728,544.03
Post subsidies 2,426,398.00 Other income 2,426,398.00
91,800.00 Deferred
Subsidies for L/C exports 91,800.00
income/Other income
Total 513,248,594.65 473,148,976.03
(2) Return of Government Subsidy
No such cases in the Reporting Period.
204
Konka Group Co., Ltd. Interim Report 2021
VII. Changes of Consolidation Scope
1. Disposal of subsidiary
The differences of enjoyed
net assets share of the
Equity subsidiary in
Method of
Name of the The equity disposal disposal Time of losing Recognition basis for the time of corresponding
equity
subsidiary price proportion control losing control power consolidated statements
disposal
(%) of the disposal price and
the disposal investment
(RMB’0,000)
The rights and obligations related to
Yantai Kangyun 3,451.00 17.00 Transfer 2021-3-31 the underlying equity have been 3,409.25
transferred
The rights and obligations related to
Shenzhen Kangxin
10,442.00 51.00 Transfer 2021-6-22 the underlying equity have been 8,597.34
Property
transferred
(Continued)
Residual Carrying value Recognition method Amount of other
Fair value of
equity of residual equity Gains or losses from and main assumption comprehensive income
residual equity on
Name of the proportion on on the date of re-measurement of of fair value of related to former
the date of losing
subsidiary the date of losing control residual equity at fair residual equity on the subsidiaries transferred
control power
losing control power value (RMB’0,000) date of losing control into investment profit or
(RMB’0,000)
power (%) (RMB’0,000) power loss (RMB’0,000)
Yantai Kangyun 34.00 83.50 6,902.00 6,818.50 Evaluated price
Shenzhen Kangxin
Property
205
Konka Group Co., Ltd. Interim Report
2021
2. Changes in Combination Scope for Other Reasons
（1）Subsidiaries Established by the Company in H1 2021
Shareholding Time and place
Method of
Name Registered capital percentage of obtaining
obtaining
(%) control power
Newly
Nantong Hongdin 30,000,000.00 100.00 2021-4-22 established
Newly
Chuzhou Konka 100,000,000.00 94.90 2021-6-28 established
Newly
Xi'an Huasheng 100,000,000.00 66.00 2021-3-4 established
Newly
Konka Soft Electronic 100,000,000.00 95.00 2021-3-31 established
Konka Hongye Newly
100,000,000.00 90.10 2021-5-7
Electronics established
Kowin Memory (Hong Newly
HKD 10,000,000.00 100.00 2021-2-2
Kong) established
Industrial and Trade Newly
50,000,000.00 100.00 2021-2-7
Technology established
Newly
Konka Huazhong 30,000,000.00 100.00 2021-6-9 established
Yibin Kangrun Medical Newly
50,000,000.00 82.19 2021-3-26 established
Yibin Kangrun
Newly
Environmental 76,000,000.00 53.69
established
Protection 2021-4-21
Kangruncheng
Newly
Environmental 10,000,000.00 26.01
established
Technology 2021-3-8
Shaanxi Konka Newly
120,000,000.00 51.00 2021-3-5
Intelligent established
Newly
Kangxin Semiconductor 70,000,000.00 100.00 2021-6-11 established
（2）The situation of the company's cancellation of the distribution of remaining assets of the
subsidiary in H1 2021
Shareholding Liquidation
Name Registered capital
percentage (%) completion time
Chongqing Kanglei
50,000,000.00 51.00 2021-4-7
Optoelectronic
Henan Kangxin Property 50,000,000.00 51.00 2021-5-18
VIII. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Serial Main Holding
Registration Way of
numbe Name operating Nature of business percentage
place gaining
r place (%)
206
Konka Group Co., Ltd. Interim Report
2021
Direct Indirec
ly tly
Establishme
Electronics Guangdong, Guangdong,
1 Manufacturing industry 100 nt or
Technology Shenzhen Shenzhen
investment
Establishme
Anhui, Anhui,
2 Anhui Zhilian Electronic commerce 100 nt or
Chuzhou Chuzhou
investment
Establishme
Jiangsu, Jiangsu, Wholesale and retail
3 Haimen Konka 100 nt or
Nantong Nantong industry
investment
Establishme
Chengdu Konka Sichuan, Sichuan, Wholesale and retail
4 100 nt or
Smart Chengdu Chengdu industry
investment
Establishme
Chengdu Konka Sichuan, Sichuan,
5 Manufacturing industry 100 nt or
Electronic Chengdu Chengdu
investment
Software and Establishme
Guangdong, Guangdong,
6 Youzhihui information technology 100 nt or
Shenzhen Shenzhen
service investment
Establishme
Xiaojia Guangdong, Guangdong,
7 Retail industry 100 nt or
Technology Shenzhen Shenzhen
investment
Establishme
Liaoyang Liaoning, Liaoning,
8 Wholesale industry 100 nt or
Kangshun Smart Liaoyang Liaoyang
investment
Liaoyang Comprehensive Establishme
Liaoning, Liaoning,
9 Kangshun utilization of waste 100 nt or
Liaoyang Liaoyang
Renewable resources industry investment
Establishme
Jiangsu, Jiangsu,
10 Nanjing Konka Wholesale industry 100 nt or
Nanjing Nanjing
investment
Establishme
Guangdong, Guangdong,
11 XingDa HongYe Manufacturing industry 51 nt or
Zhongshan Zhongshan
investment
Establishme
12 Shanghai Xinfeng Shanghai Shanghai Commerce 51 nt or
investment
Establishme
Guangdong, Guangdong,
13 Konka Circuit Investment holding 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
14 Boluo Precision Manufacturing industry 100 nt or
Boluo Boluo
investment
Establishme
Guangdong, Guangdong,
15 Boluo Konka Manufacturing industry 100 nt or
Boluo Boluo
investment
Fujian, Fujian, Establishme
16 Xiamen Dalong Commerce 69.23
Xiamen Xiamen nt or
207
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
investment
Establishme
Anhui, Anhui,
17 Anhui Tongchuang Manufacturing industry 100 nt or
Chuzhou Chuzhou
investment
Electrical machinery Establishme
Jiangsu Konka Jiangsu, Jiangsu,
18 and equipment 51 nt or
Smart Changzhou Changzhou
manufacturing investment
Establishme
Anhui Electrical Anhui, Anhui,
19 Manufacturing industry 51 nt or
Appliance Chuzhou Chuzhou
investment
Establishme
Frestec Henan, Henan,
20 Manufacturing industry 51 nt or
Refrigeration Xinxiang Xinxiang
investment
Establishme
Frestec Electrical Henan, Henan,
21 Manufacturing industry 51 nt or
Appliances Xinxiang Xinxiang
investment
Establishme
Frestec Household Henan, Henan,
22 Manufacturing industry 51 nt or
Appliances Xinxiang Xinxiang
investment
Establishme
Frestec Smart Henan, Henan,
23 Retail industry 51 nt or
Home Xinxiang Xinxiang
investment
Establishme
Guangdong, Guangdong,
24 Konka Investment Capital markets service 100 nt or
Shenzhen Shenzhen
investment
Industrial park Establishme
Yibin Konka Sichuan, Sichuan,
25 development and 100 nt or
Technology Park Yibin Yibin
operation management investment
Establishme
Guangdong, Guangdong,
26 Konka Capital Capital markets service 100 nt or
Shenzhen Shenzhen
investment
Establishme
Industrial Park Guangdong, Guangdong,
27 Commercial service 51 nt or
Development Shenzhen Shenzhen
investment
Investment in industry,
Establishme
Guangdong, Guangdong, commercial information
28 Konka Suiyong 51 nt or
Shenzhen Shenzhen consultancy and
investment
investment advisor
Establishme
Kangquan Guangdong, Guangdong,
29 Commercial service 51 nt or
Enterprise Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
30 Konka Suyuan Commercial service 51 nt or
Shenzhen Shenzhen
investment
208
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Establishme
Shengxing Guangdong, Guangdong,
31 Commercial service 51 nt or
Industrial Shenzhen Shenzhen
investment
Software and Establishme
Zhitong Guangdong, Guangdong,
32 information technology 51 nt or
Technology Shenzhen Shenzhen
service investment
Establishme
Guangdong, Guangdong, Insurance agents
33 Konka Factoring 100 nt or
Shenzhen Shenzhen (non-bank finance)
investment
Establishme
Beijing Konka
34 Beijing Beijing Sale of home appliance 100 nt or
Electronic
investment
Tianjin Pilot Tianjin Pilot Establishme
35 Konka Leasing Free Trade Free Trade Leasing industry 100 nt or
Zone Zone investment
Industrial park Establishme
Suining Konka Sichuan, Sichuan,
36 development and 100 nt or
Industrial Park Suining Suining
operation management investment
Suining Electronic Establishme
Sichuan, Sichuan,
37 Technological Commercial service 100 nt or
Suining Suining
Innovation investment
Establishme
38 Shanghai Konka Shanghai Shanghai Real estate industry 100 nt or
investment
Establishme
Shandong, Shandong,
39 Yantai Kangjin Real estate industry 62.80 nt or
Yantai Yantai
investment
Establishme
Mobile Guangdong, Guangdong,
40 Commerce 100 nt or
Interconnection Shenzhen Shenzhen
investment
Establishme
Sichuan, Sichuan,
41 Sichuan Konka Manufacturing industry 100 nt or
Yibin Yibin
investment
Establishme
Sichuan, Sichuan,
42 Yibin Smart Information service 100 nt or
Yibin Yibin
investment
Establishme
Shenzhen Guangdong, Guangdong,
43 Semi-conductor 100 nt or
KONSEMI Shenzhen Shenzhen
investment
Software and Establishme
44 Chongqing Konka Chongqing Chongqing information technology 100 nt or
service investment
Design of integrated Establishme
45 Hefei KONSEMI Anhui, Hefei Anhui, Hefei 51
circuit nt or
209
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
investment
Establishme
46 Yihe Electronic Anhui, Hefei Anhui, Hefei Wholesale industry 51 nt or
investment
Establishme
Shenzhen Huiying Guangdong, Guangdong,
47 Wholesale industry 51 nt or
Technology Shenzhen Shenzhen
investment
Computer,
Chongqing communications and Establishme
48 Huiying Chongqing Chongqing other electronic 51 nt or
Technology equipment investment
manufacturing
Computer,
communications and Establishme
Kowin Memory Guangdong, Guangdong,
49 other electronic 100 nt or
(Shenzhen) Shenzhen Shenzhen
equipment investment
manufacturing
Computer,
communications and Establishme
Konka Xinyun Jiangsu, Jiangsu,
50 other electronic 100 nt or
Semiconductor Yancheng Yancheng
equipment investment
manufacturing
Establishme
Guangdong, Guangdong,
51 Shenzhen Nianhua Commercial service 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong, Guangdong,
52 Wankaida Software development 100 nt or
Shenzhen Shenzhen
investment
Shenzhen
Establishme
Chuangzhi Guangdong, Guangdong,
53 Wholesale industry 100 nt or
Electrical Shenzhen Shenzhen
investment
Appliances
Establishme
Suining Jiarun Sichuan, Sichuan,
54 Real estate industry 100 nt or
Property Suining Suining
investment
Establishme
Konka Electrical Guangdong, Guangdong, Manufacturing
55 100 nt or
Appliances Shenzhen Shenzhen industry、Commerce
investment
Establishme
Guangdong, Guangdong,
56 E2info Information service 95.78 nt or
Shenzhen Shenzhen
investment
Establishme
Hainan, Hainan,
57 E2info (Hainan) Information service 95.78 nt or
Haikou Haikou
investment
210
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Establishme
Anhui, Anhui,
58 Anhui Konka Manufacturing industry 78 nt or
Chuzhou Chuzhou
investment
Establishme
Anhui, Anhui,
59 Kangzhi Trade Wholesale industry 78 nt or
Chuzhou Chuzhou
investment
Establishme
Telecommunicatio Guangdong, Guangdong,
60 Manufacturing industry 75 25 nt or
n Technology Shenzhen Shenzhen
investment
Establishme
China, Hong China, Hong
61 Konka Mobility Manufacturing industry 100 nt or
Kong Kong
investment
Establishme
Guangdong, Guangdong,
62 Dongguan Packing Manufacturing industry 75 25 nt or
Dongguan Dongguan
investment
Establishme
Guangdong, Guangdong,
63 Dongguan Konka Manufacturing industry 75 25 nt or
Dongguan Dongguan
investment
Establishme
Suining Konka Sichuan, Sichuan,
64 Wholesale industry 100 nt or
Smart Suining Suining
investment
Chongqing
Research and Establishme
Optoelectronic
65 Chongqing Chongqing experimental 75 nt or
Technology
development investment
Research Institute
Establishme
Sichuan, Sichuan,
66 Yibin Kangrun Retail industry 67 16.83 nt or
Yibin Yibin
investment
Electrical machinery Establishme
Ningbo Khr Zhejiang, Zhejiang,
67 and equipment 60 nt or
Electric Appliance Ningbo Ningbo
manufacturing investment
Establishme
Jiangxi, Jiangxi, Manufacturing and
68 Jiangxi Konka 51 nt or
Jiujiang Jiujiang processing
investment
Establishme
Jiangsu Konka Jiangsu, Jiangsu,
69 Wholesale industry 51 nt or
Special Material Yancheng Yancheng
investment
Establishme
Xinfeng Jiangxi, Jiangxi, Manufacturing and
70 51 nt or
Microcrystalline Nanchang Nanchang processing
investment
Establishme
Liaoning, Liaoning, Renewable resources
71 Konka Huanjia 51 nt or
Dalian Dalian processing trade
investment
72 Konka Huanjia Henan, Henan, Technology promotion 51 Establishme
211
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
(Henan) Lankao Lankao and application service nt or
industry investment
Environmental Establishme
Shandong, Shandong,
73 Econ Technology technology service 51 nt or
Yantai Yantai
industry investment
Econ Environmental Establishme
Sichuan, Sichuan,
74 Environmental technology service 51 nt or
Chengdu Chengdu
Engineering industry investment
Environmental Establishme
75 Beijing Econ Beijing Beijing technology service 51 nt or
industry investment
Environmental Establishme
Binzhou Econ Shandong, Shandong,
76 technology service 51 nt or
Zhongke Binzhou Binzhou
industry investment
Environmental Establishme
Dayi Kangrun Sichuan, Sichuan,
77 technology service 51 nt or
Water Chengdu Chengdu
industry investment
Research and Establishme
Tingyuan
78 Shanghai Shanghai experimental 51 nt or
Environmental
development investment
Environmental Establishme
79 Shanghai Jiyi Shanghai Shanghai technology service 51 nt or
industry investment
Environmental Establishme
Kangrunhong Shandong, Shandong,
80 technology service 51 nt or
Environmental Yantai Yantai
industry investment
Environmental Establishme
Donggang Liaoning, Liaoning,
81 technology service 50.70 nt or
Kangrun Dandong Dandong
industry investment
Environmental
Establishme
Shanxi, Shanxi, protection and
82 Gaoping Kangrun 48.45 nt or
Jincheng Jincheng environment
investment
management
Environmental
Establishme
Shaanxi, Shaanxi, protection and
83 Xi’an Kangrun 48.45 nt or
Xi’an Xi’an environment
investment
management
Establishme
Changning Hunan, Hunan, Water production and
84 45.89 nt or
Kangrun Hengyang Hengyang supply industry
investment
Environmental
Establishme
Lushan Kangrun Henan, Henan, protection and
85 45.44 nt or
Environmental Pingdingshan Pingdingshan environment
investment
management
212
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Environmental
Establishme
Tongchuan Shaanxi, Shaanxi, protection and
86 45.39 nt or
Kangrun Honghui Tongchuan Tongchuan environment
investment
management
Environmental Establishme
Shandong, Shandong,
87 Rushan Econ technology service 44.37 nt or
Weihai Weihai
industry investment
Establishme
Mengcheng Anhui, Anhui, Water Conservancy
88 43.35 nt or
Kangrun Bozhou Bozhou Management Industry
investment
Environmental
Establishme
Chongzhou Sichuan, Sichuan, protection and
89 42.67 nt or
Kangrun Chongzhou Chongzhou environment
investment
management
Environmental Establishme
Suining Pengxi Sichuan, Sichuan,
90 technology service 40.75 nt or
Kangrun Suining Suining
industry investment
Environmental
Establishme
Funan Kangrun Anhui, Anhui, protection and
91 40.55 nt or
Water Fuyang Fuyang environment
investment
management
Environmental Establishme
Subei Kangrun Gansu, Gansu,
92 technology service 39.78 nt or
Water Jiuquan Jiuquan
industry investment
Establishme
Shanxi, Shanxi, Water production and
93 Linfen Kangrun 39.24 nt or
Linfen Linfen supply industry
investment
Environmental
Establishme
Wuhan Runyuan Hubei, Hubei, protection and
94 35.70 nt or
Wastewater Wuhan Wuhan environment
investment
management
Environmental Establishme
Shandong, Shandong,
95 Binzhou Weiyijie technology service 35.70 nt or
Binzhou Binzhou
industry investment
Environmental Establishme
Binzhou Beihai Shandong, Shandong,
96 technology service 24.99 nt or
Jingmai Binzhou Binzhou
industry investment
Environmental Establishme
Shandong, Shandong,
97 Chunzhiran technology service 35.70 nt or
Yantai Yantai
industry investment
Environmental Establishme
Shandong, Shandong,
98 Lairun Holding technology service 30.60 nt or
Yantai Yantai
industry investment
99 Binhai Wastewater Shandong, Shandong, Environmental 30.60 Establishme
213
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Yantai Yantai technology service nt or
industry investment
Lairun Environmental Establishme
Shandong, Shandong,
100 Environmental technology service 27.54 nt or
Yantai Yantai
Protection industry investment
Environmental
Establishme
Shandong, Shandong, protection and
101 Lairun Wastewater 24.14 nt or
Yantai Yantai environment
investment
management
Shaanxi, Shaanxi, Establishme
Public Facilities
102 Xixian Kangrun Xixian New Xixian New 26.01 nt or
Management Industry
Area Area investment
Environmental
Establishme
Shaanxi, Shaanxi, protection and
103 Ankang Kangrun 26.01 nt or
Ankang Ankang environment
investment
management
Establishme
Bokang Shandong, Shandong, Internet and related
104 26.01 nt or
Renewable Yantai Yantai services
investment
Establishme
Pengrun Guangdong, Guangdong,
105 Retail industry 51 nt or
Technology Shenzhen Shenzhen
investment
Establishme
China, Hong China, Hong
106 Jiaxin Technology Retail industry 51 nt or
Kong Kong
investment
Establishme
Zhejiang, Zhejiang, Wholesale and retail
107 Konka Ronghe 51 nt or
Jiaxing Jiaxing industry
investment
Recycling, processing Establishme
Chongqing
108 Chongqing Chongqing and sales of renewable 51 nt or
Kangxingrui
resources investment
Chongqing
Dismantling and Establishme
Kangxingrui
109 Chongqing Chongqing utilization of scrapped 51 nt or
Automobile
cars investment
Recycling
Establishme
Guangdong, Guangdong,
110 Konka Unifortune Retail industry 51 nt or
Shenzhen Shenzhen
investment
Establishme
China, Hong China, Hong
111 Jiali International Retail industry 51 nt or
Kong Kong
investment
Establishme
Sichuan, Sichuan,
112 Kangjiatong Service industry 51 nt or
Yibin Yibin
investment
214
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Comprehensive Establishme
Kanghong (Yantai) Shandong, Shandong,
113 utilization of waste 51 nt or
Environmental Yantai Yantai
resources industry investment
Jiangkang Research and Establishme
114 (Shanghai) Shanghai Shanghai experimental 51 nt or
Technology development investment
Research and Establishme
Konka Intelligent Guangdong, Guangdong,
115 experimental 51 nt or
Manufacturing Shenzhen Shenzhen
development investment
Establishme
Shandong, Shandong,
116 Yantai Laikang Commercial service 51 nt or
Yantai Yantai
investment
Establishme
Hainan, Hainan,
117 Konka Material Commercial service 51 nt or
Haikou Haikou
investment
Establishme
Guangdong, Guangdong, Other organization
118 Konka Ventures 51 nt or
Shenzhen Shenzhen management services
investment
Establishme
Yibin Konka Sichuan, Sichuan,
119 Commercial service 51 nt or
Incubator Yibin Yibin
investment
Other professional Establishme
Shandong, Shandong,
120 Yantai Konka consultation and 51 nt or
Yantai Yantai
investigation investment
Establishme
Sichuan, Sichuan,
121 Chengdu Anren Commercial service 51 nt or
Chengdu Chengdu
investment
Establishme
Konka Enterprise Guizhou, Guizhou, Corporate Headquarters
122 51 nt or
Service Guiyang Guiyang Management
investment
Establishme
Jiangsu, Jiangsu, Entrepreneurship Space
123 Chuanghui Smart 40.80 nt or
Nanjing Nanjing Service
investment
Establishme
Konka Guangdong, Guangdong,
124 Commercial service 51 nt or
Eco-Development Shenzhen Shenzhen
investment
Establishme
Germany, Germany,
125 Konka Europe International commerce 100 nt or
Frankfurt Frankfurt
investment
Establishme
China, Hong China, Hong
126 Hong Kong Konka International commerce 100 nt or
Kong Kong
investment
China, Hong China, Hong Establishme
127 Hongdin Trading International commerce 100
Kong Kong nt or
215
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
investment
Establishme
Konka North America, America,
128 International commerce 100 nt or
America California California
investment
Establishme
Kanghao
129 Egypt, Cairo Egypt, Cairo International commerce 67 nt or
Technology
investment
Establishme
China, Hong China, Hong
130 Hongdin Invest Investment holding 100 nt or
Kong Kong
investment
Chain Kingdom Establishme
China, Hong China, Hong
131 Memory International commerce 51 nt or
Kong Kong
Technologies investment
Chain Kingdom
Establishme
Memory Guangdong, Guangdong,
132 Wholesale industry 51 nt or
Technologies Shenzhen Shenzhen
investment
(Shenzhen)
Hefei Chain Establishme
133 Kingdom Memory Anhui, Hefei Anhui, Hefei Information service 51 nt or
Technologies investment
Establishme
China, Hong China, Hong
134 Konka Smartech International commerce 61 nt or
Kong Kong
investment
Establishme
China, Hong China, Hong
135 Hongjet Service industry 51 nt or
Kong Kong
investment
Computer,
communications and Establishme
Jiangsu, Jiangsu,
136 Nantong Hongdin other electronic 100 nt or
Nantong Nantong
equipment investment
manufacturing
Establishme
Anhui, Anhui, Non-metallic mineral
137 Chuzhou Konka 94.90 nt or
Chuzhou Chuzhou products industry
investment
Establishme
Shaanxi, Shaanxi,
138 Xi'an Huasheng Real estate industry 66 nt or
Xi’an Xi’an
investment
Establishme
Konka Soft Sichuan, Sichuan, Special equipment
139 95 nt or
Electronic Suining Suining manufacturing industry
investment
Establishme
Konka Hongye Sichuan, Sichuan, Special equipment
140 90.10 nt or
Electronics Suining Suining manufacturing industry
investment
216
Konka Group Co., Ltd. Interim Report
2021
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Computer,
communications and Establishme
Kowin Memory China, Hong China, Hong
141 other electronic 100 nt or
(Hong Kong) Kong Kong
equipment investment
manufacturing
Establishme
Industrial and Guangdong, Guangdong,
142 Wholesale industry 100 nt or
Trade Technology Shenzhen Shenzhen
investment
Technology promotion Establishme
Hunan, Hunan,
143 Konka Huazhong and application service 100 nt or
Changsha Changsha
industry investment
Environmental
Establishme
Yibin Kangrun Sichuan, Sichuan, protection and
144 82.19 nt or
Medical Yibin Yibin environment
investment
management
Yibin Kangrun Research and Establishme
Sichuan, Sichuan,
145 Environmental experimental 53.69 nt or
Yibin Yibin
Protection development investment
Jiangxi High Establishme
Jiangxi, Jiangxi, Manufacturing and
146 Transparent 51.00 nt or
Jiujiang Jiujiang processing
Substrate investment
Environmental Establishme
Weifang Sihai Shandong, Shandong,
147 technology service 32.09 nt or
Kangrun Weifang Weifang
industry investment
Kangruncheng Establishme
Shandong, Shandong,
148 Environmental Commercial service 26.01 nt or
Yantai Yantai
Technology investment
Electrical machinery Establishme
Shaanxi Konka Shaanxi, Shaanxi,
149 and equipment 51.00 nt or
Intelligent Xi’an Xi’an
manufacturing investment
Computer,
communications and Establishme
Kangxin Shandong, Shandong,
150 other electronic 100 nt or
Semiconductor Yantai Yantai
equipment investment
manufacturing
Note: The indirect shareholding of the Company shall be the penetration ratio of the subsidiary
enjoyed by the Company at the consolidation level, and belongs to the final equity share of the
subsidiary enjoyed by the Company.
(2) Significant Non-wholly-owned Subsidiary
Sharehold The profit or loss Declaring
Balance of
ing attributable to dividends
non-controlling
Name proportio the distributed to
interests at the
n of non-controlling non-controlling
period-end
non-contr interests interests
217
Konka Group Co., Ltd. Interim Report
2021
olling
interests
(%)
Econ Technology 49.00% 69,943,521.22 1,099,227,297.92
Chain Kingdom
49.00% 5,832,692.06 66,139,968.40
Memory Technologies
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Konka Group Co., Ltd. Interim Report 2021
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Ending balance
Name
Current assets Non-current assets Total assets Current liabilities Non-current liability Total liabilities
Econ Technology 5,477,220,513.79 9,465,339,087.97 14,942,559,601.76 8,785,637,395.05 4,447,674,810.71 13,233,312,205.76
Chain Kingdom
Memory 1,146,313,795.10 1,601,639.67 1,147,915,434.77 1,011,442,224.13 1,493,683.30 1,012,935,907.43
Technologies
(Continued)
Beginning balance
Name Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liability
Econ Technology 4,462,132,589.77 8,755,726,357.81 13,217,858,947.58 8,703,704,732.25 2,962,052,834.96 11,665,757,567.21
Chain Kingdom
Memory 1,207,762,181.65 151,871.86 1,207,914,053.51 1,084,837,979.38 1,084,837,979.38
Technologies
(Continued)
Reporting Period
Name Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Econ Technology 987,086,128.04 128,453,230.52 128,453,230.52 -634,712,360.70
Chain Kingdom Memory Technologies 3,756,519,723.85 13,367,681.89 11,903,453.19 80,536,781.65
(Continued)
Same period of last year
Name Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Econ Technology 725,770,854.14 96,019,839.22 96,019,839.22 -189,595,823.45
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Konka Group Co., Ltd. Interim Report 2021
Chain Kingdom Memory Technologies 1,974,917,750.88 12,234,256.61 14,102,950.22 -134,524,608.11
2. Changes in the share of owners' equity in subsidiaries this period have no impact on equity.
220
Konka Group Co., Ltd. Interim Report 2021
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Holding percentage Accounting
(%) treatment of
Main
Registration Nature of the investment
Name operating
place business to joint venture
place Directly Indirectly or associated
enterprise
Dongfang
Konka No.1
(Zhuhai) Investment
Zhuhai Zhuhai 49.95 Equity method
Private Equity management
Investment
Fund (LP)
Shenzhen Electronic
Jielunte Equipment
Technology Shenzhen Shenzhen Manufacturing 42.79 Equity method
Co., Ltd.
(2) Main Financial Information of Significant Associated Enterprise
Ending balance/Reporting Period
Dongfang Konka No.1 (Zhuhai) Shenzhen Jielunte Technology
Item
Private Equity Investment Fund Co., Ltd.
(LP)
Current assets 681,199,562.63 252,917,231.01
Non-current assets 222,436,194.89
Total assets 681,199,562.63 475,353,425.90
Current liabilities 100,829.98 249,422,722.74
Non-current liability 17,927,509.79
Total liabilities 100,829.98 267,350,232.53
Equity of non-controlling interests 9,141,304.07
Equity attributable to shareholders 198,861,889.30
681,098,732.65
of the Company as the parent
Book value of equity investment in 335,505,835.19 91,163,534.11
associated enterprises
Operating revenue 227,686,845.28
Finance costs -281,006.45 2,748,106.23
Income tax expense -1,440,602.70
Net profit -28,114,379.69 3,684,846.93
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -28,114,379.69 3,684,846.93
Dividends received from the joint
venture in the current period
(Continued)
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Konka Group Co., Ltd. Interim Report 2021
Beginning balance/Same period of last year
Dongfang Konka No.1 (Zhuhai) Shenzhen Jielunte Technology
Item
Private Equity Investment Fund Co., Ltd.
(LP)
Current assets 686,710,061.46 271,865,221.76
Non-current assets 227,090,375.33
Total assets 686,710,061.46 498,955,597.09
Current liabilities 285,530.00 276,139,120.51
Non-current liability 18,498,130.14
Total liabilities 285,530.00 294,637,250.65
Equity of non-controlling interests 10,008,858.78
Equity attributable to shareholders 194,309,487.66
686,424,531.46
of the Company as the parent
Book value of equity investment in 89,187,905.40
336,170,619.84
associated enterprises
Operating revenue 181,530,263.84
Finance costs -74,102.12 1,715,621.18
Income tax expense -1,295,366.94
Net profit -4,629,057.58 3,589,222.29
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -4,629,057.58 3,589,222.29
Dividends received from the joint
venture in the current period
(3) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Item Ending balance/Reporting Beginning balance/The
Associated enterprise: Period Same period of last year
Total carrying value of investment 4,039,134,762.32 3,950,475,059.41
The total of following items
according to the shareholding
--Net profit 27,682,427.99 48,924,704.74
--Other comprehensive income
--Total comprehensive income 27,682,427.99 48,924,704.74
IX. The Risk Related to Financial Instruments
The Company’s main financial instruments include borrowings, accounts receivable, accounts
payable, trading financial assets and liabilities, etc. Please refer to Note VI for detailed
descriptions of various financial instruments. Risks related to these financial instruments, and risk
management policies the Company has adopted to reduce these risks are described as follows.
The Company management manages and monitors the risk exposure in order to ensure the above
risks to be controlled in a limited scope.
1. Various Risk Management Objectives and Policies
The goals of the Company engaged in the risk management is to achieve the proper balance
between the risks and benefits, reduced the negative impact to the Company operating
performance risk to a minimum, maximized the profits of shareholders and other equity investors.
Based on the risk management goal, the basic strategy of the Company's risk management is
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Konka Group Co., Ltd. Interim Report 2021
determine and analyze the various risks faced by the Company, set up the bottom line of risk and
conducted appropriate risk management, and timely supervised various risks in a reliable way and
controlled the risk within the range of limit.
（1）Market Risk
1）Foreign Exchange Risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in exchange
rate. The foreign exchange risk borne by the Company is related to USD. Except the procurement
and sales by USD for several subsidiaries of the Company, the other main businesses of the
Company were settled by RMB. The foreign exchange risks produced by the assets and liabilities
balance may affect the business performance of the Company. As of 30 June 2021, except for the
assets or liabilities mentioned in the table below, the assets and liabilities of the Company are
mainly the balance of RMB.
Item Period-end Period-begin
Cash and cash
84,160,593.16 95,989,561.32
equivalents
Accounts receivable 134,495,088.51 132,221,173.92
Other receivables 39,323,079.55 135,938,277.17
Interest receivables 25,006.06
Short-term borrowings 84,416,347.52 59,159,714.38
Accounts payable 31,338,417.26 42,417,352.11
Other payables 3,036,214.29
Interest payable 325,559.34 99,200.24
The company pays close attention to the impact of exchange rate changes on the company's
foreign exchange risk, and requires major companies in the group that purchase and sell in
foreign currency to pay attention to the changes in foreign currency assets and liabilities, manage
the group's foreign currency net asset exposure in a unified way, implement single currency
settlement, and reduce the scale of foreign currency assets and liabilities, so as to reduce foreign
exchange risk exposure.
2）Interest Rate Risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments arising from changes in market interest rates. Interest-bearing financial instruments
with fixed interest rate may bring the fair value interest rate risk to the Company, while those with
floating interest rate may bring the cash flow interest rate risk to the Company.The Company
bears interest rate risk due to interest rate changes of interest bearing financial assets and
liabilities. The Company's interest bearing financial assets are mainly bank deposits, of which the
variable interest rate is mostly short-term, while the interest bearing financial liabilities are
mainly bank loans and corporate bonds. The Company will determine the proportion between the
financial instruments with fixed interest rate and those with floating interest rate in combination
with market environment, and maintain an appropriate portfolio of financial instruments through
regular review and monitoring.
（2）Credit Risk
As of 30 June 2021, the maximum credit risk exposure that may cause financial losses to the
Company mainly came from losses generated from the Company’s financial assets due to failure
of the other party in a contract to perform its obligations and the financial guarantee undertaken
by the Company, including:
The carrying amount of financial assets recognized in the consolidated balance sheet; for financial
instruments measured at fair value, the book value reflects their risk exposure, but not the
maximum risk exposure, and the maximum risk exposure will change with the change of future
223
Konka Group Co., Ltd. Interim Report 2021
fair value.
In order to reduce credit risk, the company has set up a group to determine the credit limit,
conduct credit approval, and implement other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition, the company reviews the recovery of
each single receivable on each balance sheet date to ensure that sufficient bad debt provision is
made for the unrecoverable amount. Therefore, the company's management believes that the
company's credit risk has been greatly reduced.
The company's working capital is deposited in banks with high credit rating, so the credit risk of
working capital is low.
The Company has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable, the
Company has no other major credit concentration risk. For the financial assets of the Company
that have been individually impaired, please refer to 4. Accounts Receivable and 7. Other
Receivables in Note VI.
（3）Liquidity Risk
Liquidity risk refers to the risk that the company is unable to fulfill its financial obligations on the
due date. The Company manages liquidity risk in the method of ensuring that there is sufficient
liquidity to fulfill debt obligations without causing unacceptable loss or damage to the Company’s
reputation. In order to mitigate the liquidity risk, the management of the company has carried out
a detailed inspection on the liquidity of the company, including the maturity of accounts payable
and other payables, bank credit line and bond financing. The conclusion is that the company has
sufficient funds to meet the needs of the group's short-term debt and capital expenditure.
The analysis of the financial assets and financial liabilities held by the Company based on the
maturity period of the undiscounted remaining contractual obligations is as follows:
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Konka Group Co., Ltd. Interim Report 2021
Amount on 30 June 2021:
Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets
Monetary assets 5,808,945,725.97 5,808,945,725.97
Held-for-trading financial
assets
Notes receivable 1,517,173,391.11 1,517,173,391.11
Accounts receivable 3,055,810,084.71 1,042,056,711.94 451,497,541.94 226,688.00 4,549,591,026.59
Other receivables 862,955,713.01 1,018,989,394.31 114,338,151.50 6,387,673.20 2,002,670,932.02
Long-term receivables 29,003,761.31 29,269,369.45 10,430,400.00 350,937,230.14 419,640,760.90
Other current assets 2,245,900,952.01 2,245,900,952.01
Financial liabilities
Short-term borrowings 10,660,328,520.00 10,660,328,520.00
Notes payable 1,084,027,559.56 1,084,027,559.56
Accounts payable 8,606,110,762.20 1,054,960,597.01 170,805,589.48 10,677,793.63 9,842,554,742.32
Other payables 1,371,441,277.41 103,585,634.52 132,327,996.97 39,396,443.29 1,646,751,352.19
Payroll payable 231,185,917.73 231,185,917.73
Current portion of non-current
4,327,184,538.69 4,327,184,538.69
liabilities
Long-term borrowings 2,090,919,000.00 2,291,060,000.00 1,241,847,132.95 4,348,118,015.53 9,971,944,148.48
Bonds payable 2,000,000,000.00 1,497,019,129.95 1,495,689,203.37 4,992,708,333.32
Long-term payables 209,741,731.57 173,347,183.69 270,587,154.51 28,000,000.00 681,676,069.77
225
Konka Group Co., Ltd. Interim Report 2021
2. Sensitivity Analysis
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable
and possible changes of risk variables on current profits/losses or shareholders’ equity. As any
risk variable rarely changes in isolation, and the correlation between variables will have a
significant effect on the final impact amount of the change of a risk variable, the following
content is based on the assumption that the change of each variable is independent.
（1）Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow
hedging of overseas operations are highly effective.
On the basis of the above assumption, under the condition that other variables remain unchanged,
the impact of reasonable changes in the exchange rate on current profits/losses and equity after
tax is as follows:
30 June 2021
Change in the
Item Impact on shareholders’
exchange rate Impact on net profit
equity
Appreciation of 1%
USD 7,506,084.49 4,800,223.85
against RMB
Depreciation of 1%
USD -7,506,084.49 -4,800,223.85
against RMB
X. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Ending fair value
Fair value
Item Fair value Fair value
measuremen
measurement measurement items Total
t items at
items at level 2 at level 3
level 1
I. Consistent fair value
measurement
(I) Trading financial assets
(II) Accounts receivable
111,375,140.87 111,375,140.87
financing
(III) Investment in other
debt obligations
(IV) Other equity
25,343,293.16 25,343,293.16
instrument investment
(V) Other non-current
2,041,635,385.92 2,041,635,385.92
financial assets
Total assets of consistent
111,375,140.87 2,066,978,679.08 2,178,353,819.95
fair value measurement
Total liabilities of
consistent fair value
measurement
Total assets of inconsistent
fair value measurement
Total liabilities of
inconsistent fair value
226
Konka Group Co., Ltd. Interim Report 2021
Ending fair value
Fair value
Item Fair value Fair value
measuremen
measurement measurement items Total
t items at
items at level 2 at level 3
level 1
measurement
2. Basis for Determining the Market Prices of Consistent and Inconsistent Fair Value
Measurement Items at Level 1
Input value at Level 1 is the unadjusted quotation in the active market of the same assets or
liabilities that can be obtained on the measurement date.
3. Valuation Technique Adopted and Qualitative and Quantitative Information of Important
Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 2
The Level 2 fair value measurement of input value at Level 2 is the input value observable
directly or indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Valuation Technique Adopted and Qualitative and Quantitative Information of Important
Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 3
Input value at Level 3 is the input value unobservable of relevant assets or liabilities.
XI. Related Party and Related-party Transaction
(I) Relationship of Related Party
1. Controlling Shareholder and the Ultimate Controller
(1) Controlling Shareholder and the Ultimate Controller
Sharehold
Voting right
Registr Register ing ratio
ratio to the
Name ation Nature ed to the
Company
place capital Company
(%)
(%)
Shenzh Tourism, real estate, RMB12
OCT Group Co., Ltd. 29.999997 29.999997
en electronics industry billion
Note: The ultimate controller of the Company is State-owned Assets Supervisor Commission of
the State Council.
(2) The Registered Capital of the Controlling Shareholder and its Changes
Controlling shareholder Beginning balance Increase Decrease Ending balance
OCT Group Co., Ltd. 12,000,000,000.00 12,000,000,000.00
(3) Controlling Shareholders’ Shares or Equity and their Changes
Shareholding amount Shareholding ratio (%)
Controlling shareholder
Ending balance Beginning Percentage Percentage at
OCT Group Co., Ltd. balance at the end of the beginning
722,383,542.00 722,383,542.00 29.999997 29.999997
2. Subsidiary
Refer to note VIII-1(1) Subsidiaries for the information of subsidiaries.
3. Associated Enterprises and Joint Ventures
Refer to Note VIII-3. (1) Significant Associated Enterprises for details of significant associated
enterprises of the Company. Information on other joint ventures or associated enterprises
occurring connected transactions with the Company in Reporting Period, or forming balance due
to connected transactions made in previous period:
Name Relationship with the Company
Puchuang Jiakang Technology Co, Ltd. Associated enterprise
227
Konka Group Co., Ltd. Interim Report 2021
Name Relationship with the Company
Dongguan Konka Electronic Smart Technology Co.,
Associated enterprise
Ltd.
Anhui Kaikai Sihjie E-commerce Co., Ltd. Associated enterprise
Shenzhen Jielunte Technology Co., Ltd. Associated enterprise
Shenzhen Konka E-display Co., Ltd. Associated enterprise
E3info (Hainan) Technology Co., Ltd. Associated enterprise
Wanjun Technology (Kunshan) Co., Ltd. Associated enterprise
Shenzhen Konka Information Network Co., Ltd. Associated enterprise
Henan Konka Smart Electrical Appliance Co., Ltd. Associated enterprise
Shandong Konka Smart Electrical Appliance Co.,
Associated enterprise
Ltd.
Feidi Technology (Shenzhen) Co., Ltd. and its
Associated enterprise
subsidiaries
Shenzhen Konka Smart Electric Appliances
Associated enterprise
Technology Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. Associated enterprise
Heilongjiang Longkang Smart Electrical Appliance
Associated enterprise
Co., Ltd.
Dongguan Konka Investment Co., Ltd. Associated enterprise
Chuzhou Kangxin Health Industry Development Co.,
Associated enterprise
Ltd.
Yantai Kangyun Industry Development Co., Ltd. Associated enterprise
Chongqing Qingjia Electronics Co., Ltd. Associated enterprise
4. Information on Other Related Parties
Name Relationship with the Company
Yantai Kangyue Investment Co., Ltd. Subsidiary of associated enterprise
Chongqing Konka Fuze Real Estate Co., Ltd. Subsidiary of associated enterprise
Chuzhou Hanshang Electric Appliance Co., Ltd. Minority shareholder of subsidiary
HOHOELECTRICAL&FURNITURECO.,LIMI
Minority shareholder of subsidiary
TED
Handian Group Co., Ltd. Minority shareholder of subsidiary
Shenzhen Jinzhu Industry Co., Ltd Minority shareholder of subsidiary
Shenzhen Trade Link Supply Chain
Minority shareholder of subsidiary
Management Co., Ltd.
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Huanjia Group Co., Ltd Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment
Minority shareholder of subsidiary
Co., Ltd.
Yantai Qingrunyuan Enterprise Management
Minority shareholder of subsidiary
Center (Limited Partnership)
Yantai Fengqingtai Investment Center (Limited
Minority shareholder of subsidiary
Partnership)
Yantai Baijiangyuan Enterprise Management
Minority shareholder of subsidiary
Center (Limited Partnership)
228
Konka Group Co., Ltd. Interim Report 2021
Name Relationship with the Company
Chongqing Ruiyin Renewable Resources Co., The ultimate controller of the minority
Ltd. shareholders of the subsidiary
Chongqing Lvfeng Renewable Resources Co., The company controlled by the ultimate controller
Ltd. of the minority shareholders of the subsidiary
Companies controlled by minority shareholders of
Unifortune (Hong Kong) Co., Ltd.
subsidiaries
Dai Rongxing Close family members of minority shareholders
The company controlled by the ultimate controller
Jiangxi Meiji Enterprise Co., Ltd.
of the minority shareholders of the subsidiary
(II) Related-party Transactions
(1) Related transactions of purchase and sale of goods, provision and acceptance of services
(1) Purchasing goods/receiving services
Same period of last
Related party Content Reporting Period
year
Chongqing Lvfeng Renewable Resources Co.,
Purchase of goods 1,503,638,982.86
Ltd.
Chuzhou Hanshang Electric Appliance Co.,
Purchase of goods 207,875,193.30 296,887,244.25
Ltd.
Shenzhen Jielunte Technology Co., Ltd. and its
Purchase of goods 22,652,611.58 45,637,929.92
subsidiaries as well as associated enterprises
Shenzhen Konka E-display Co., Ltd. Purchase of goods 26,475,410.20 5,602,162.83
OCT Group Co., Ltd. and its subsidiaries and
Purchase of services 23,801,411.18 16,952,626.55
associated enterprises
Korea Electric Group Co., Ltd. and its
Purchase of goods 39,114,787.43 28,851,808.45
subsidiaries
Puchuang Jiakang Technology Co, Ltd. Purchase of goods 163,541,409.57 184,681,510.44
HOHOELECTRICAL&FURNITURECO.,LI
Purchase of goods 13,904,763.96 34,250,250.58
MITED
Dongguan Konka Electronics Smart
Purchase of goods 15,400,576.70 5,755,090.87
Technology Co., Ltd.
Purchase of goods and
Anhui Kaikai Sihjie E-commerce Co., Ltd. 7,817,518.74 11,561,667.28
services
Shenzhen Konka Intelligent Electrical Purchase of goods and
594,073.95 2,422,573.79
Technology Co., Ltd. services
Shenzhen Jinzhu Industry Co., Ltd Purchase of goods 41.95 20,346,169.14
Shenzhen Trade Link Supply Chain
Purchase of goods 5,617,295.12
Management Co., Ltd.
Shenzhen Konka Information Network Co.,
Purchase of goods 2,630,116.46
Ltd.
Zhuhai Jinsu Plastic Co., Ltd. Purchase of goods 1,082,212.94
Purchase of goods and
Subtotal of other related parties 144,714.85 4,897,091.25
services
(2) Information of sales of goods and provision of labor service
229
Konka Group Co., Ltd. Interim Report 2021
Same Period of last
Related party Content Reporting Period
year
Korea Electric Group Co., Ltd. and its
Sales of goods 181,904,680.78 18,375,346.08
subsidiaries
Anhui Kaikai Sihjie E-commerce Co., Ltd. Sales of goods and
86,107,536.96 290,281,383.41
and its subsidiaries render labor service
OCT Group Co., Ltd. and its subsidiaries and Sales of goods and
78,699,287.26 103,732,850.45
associated enterprises render labor service
AUJET INDUSTRY LIMITED Sales of goods 73,722,203.15
HOHOELECTRICAL&FURNITURECO.,LI
Sales of goods 35,832,964.53 65,543,689.34
MITED
Shandong Konka Smart Electrical Appliance Sales of goods and
33,094,053.38 13,136,006.95
Co., Ltd. render labor service
Chuzhou Hanshang Electric Appliance Co., Sales of goods and
30,402,393.78 3,547,295.36
Ltd. render labor service
Shenzhen Jielunte Technology Co., Ltd. and
Sales of goods and
its subsidiaries as well as associated 23,197,082.93 28,339,511.01
render labor service
enterprises
Henan Konka Smart Electrical Appliance Co.,
Sales of goods 18,874,703.89 14,995,854.89
Ltd.
Shenzhen Konka E-display Commercial Sales of goods and
23,556,672.37 10,812,583.47
Display Co., Ltd. render labor service
Dongguan Konka Electronics Smart Sales of goods and
11,344,197.37 1,737,574.70
Technology Co., Ltd. render labor service
E3info (Hainan) Technology Co., Ltd. and its Sales of goods and
5,124,776.56
subsidiaries render labor service
Sales of goods and
Sichuan Huayi Jiakang Technology Co., Ltd. 3,211,244.93
render labor service
Feidi Technology (Shenzhen) Co., Ltd. and its
Render labor service 1,436,154.46 1,877,632.62
subsidiaries
Shenzhen Konka Smart Electrical Apparatus
Render labor service 240,681.17 2,359,154.20
Technology Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. Sales of goods 29,871,066.73
Subtotal of other related parties Sales of goods and
1,433,408.65 3,453,093.05
render labor service
2. Information on Related-party Lease
(1) Lease situation
The lease fee The lease fee
confirmed in confirmed in
Leasee Lessee's name Category the same
the Reporting
Period period of last
year
Commercial
OCT Group Co. Ltd. Konka Group Co.,
residences and 683,385.60 871,161.20
And its subsidiaries Ltd.
office buildings
230
Konka Group Co., Ltd. Interim Report 2021
The lease fee The lease fee
confirmed in confirmed in
Leasee Lessee's name Category the same
the Reporting
Period period of last
year
Konka Ventures Commercial
OCT Group Co. Ltd.
Development residences and 10,456,131.42
And its subsidiaries
(Shenzhen) Co., Ltd. office buildings
3. Information on Related-party Guarantee
(1) The Company was guarantor
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0,000) or not
Ningbo
Kanghanrui 5,940.00 CNY 2020-7-27 2021-7-26 Not
Electric
Kunshan
Kangsheng
Investment 8,064.90 CNY 2019-9-23 2022-9-22 Not
Development
Co., Ltd.
Pengrun
1,500.00 CNY 2020-8-25 2021-8-25 Not
Technology
Anhui
3,000.00 CNY 2020-8-6 2021-8-5 Not
Tongchuang
Anhui
1,225.00 CNY 2020-10-19 2021-10-19 Not
Tongchuang
Anhui
729.40 CNY 2021-1-21 2022-1-20 Not
Tongchuang
Anhui
4,500.00 CNY 2021-2-25 2022-2-25 Not
Tongchuang
Dongguan
5,000.00 CNY 2021-2-8 2022-2-1 Not
Konka
Dongguan
1,500.00 CNY 2021-6-23 2031-5-7 Not
Konka
Electronics
5,832.23 CNY 2020-7-24 2021-6-28 Not
Technology
Electronics
4,796.24 CNY 2020-8-14 2021-9-9 Not
Technology
Electronics
50,000.00 CNY 2020-11-16 2021-5-22 Not
Technology
Electronics
3,178.67 CNY 2021-2-24 2021-12-21 Not
Technology
Econ
13,999.91 CNY 2020-6-5 2021-3-17 Not
Technology
Econ
5,000.00 CNY 2020-8-21 2021-8-20 Not
Technology
Econ
5,000.00 CNY 2020-9-22 2021-9-21 Not
Technology
Econ 3,000.00 CNY 2021-1-29 2022-1-28 Not
231
Konka Group Co., Ltd. Interim Report 2021
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0,000) or not
Technology
Econ
5,000.00 CNY 2021-3-24 2022-3-23 Not
Technology
Econ
8,000.00 CNY 2021-6-8 2022-6-7 Not
Technology
Econ
5,000.00 CNY 2021-6-18 2022-6-17 Not
Technology
Telecommunicat
2,305.42 CNY 2020-8-26 2021-8-26 Not
ion Technology
Sichuan Konka 4,000.00 CNY 2019-3-18 2022-3-19 Not
Yibin OCT
Sanjiang
5,258.00 CNY 2019-9-29 2022-9-28 Not
Properties Co.,
Ltd.
XingDa HongYe 5,626.00 CNY 2020-11-12 2022-11-12 Not
XingDa HongYe 2,000.00 CNY 2020-12-25 2023-12-25 Not
XingDa HongYe 750.00 CNY 2021-5-31 2023-8-31 Not
Boluo Konka
1,725.00 CNY 2020-8-19 2023-8-19 Not
Precision
Jiangxi Konka 10,900.00 CNY 2019-3-18 2021-9-18 Not
Jiangxi Konka 5,500.00 CNY 2019-6-26 2022-6-25 Not
Jiangxi Konka 6,500.00 CNY 2019-10-30 2022-10-30 Not
Jiangxi Konka 990.00 CNY 2020-3-20 2022-3-19 Not
Jiangxi Konka 5,000.00 CNY 2021-6-26 2022-6-25 Not
Jiangxi Konka 3,000.00 CNY 2020-8-4 2021-8-4 Not
Jiangxi Konka 10,000.00 CNY 2020-9-29 2023-9-29 Not
Jiangxi Konka 10,000.00 CNY 2020-11-6 2023-12-6 Not
Jiangxi Konka 5,000.00 CNY 2020-12-21 2022-12-31 Not
Jiangxi Konka 1,000.00 CNY 2020-12-30 2023-12-30 Not
Xinfeng
5,000.00 CNY 2020-5-19 2023-5-19 Not
Microcrystalline
Xinfeng
3,200.00 CNY 2020-5-29 2022-11-29 Not
Microcrystalline
Xinfeng
2,100.00 CNY 2020-12-8 2023-12-8 Not
Microcrystalline
Xinfeng
6,000.00 CNY 2020-12-28 2021-12-27 Not
Microcrystalline
Xinfeng
6,000.00 CNY 2021-6-18 2022-6-17 Not
Microcrystalline
Jiangxi High
Transparent 10,000.00 CNY 2019-6-26 2022-6-25 Not
Substrate
232
Konka Group Co., Ltd. Interim Report 2021
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0,000) or not
Jiangxi High
Transparent 5,000.00 CNY 2019-12-20 2022-12-20 Not
Substrate
Jiangxi High
Transparent 5,000.00 CNY 2020-1-8 2023-1-8 Not
Substrate
Jiangxi High
Transparent 5,000.00 CNY 2020-1-8 2022-1-8 Not
Substrate
Jiangxi High
Transparent 990.00 CNY 2020-3-20 2022-3-19 Not
Substrate
Jiangxi High
Transparent 5,500.00 CNY 2020-5-29 2022-11-29 Not
Substrate
Jiangxi High
Transparent 7,000.00 CNY 2020-6-24 2021-6-24 Not
Substrate
Jiangxi High
Transparent 6,000.00 CNY 2020-7-14 2023-7-14 Not
Substrate
Hong Kong
16,114.20 CNY 2020-12-28 2021-9-9 Not
Konka
Hong Kong
1,500.00 USD 2021-2-26 2022-2-26 Not
Konka
Anhui Konka 7,000.00 CNY 2020-11-25 2021-11-24 Not
Anhui Konka 15,000.00 CNY 2020-12-24 2021-9-2 Not
Anhui Konka 14,000.00 CNY 2021-3-25 2022-3-25 Not
Anhui Konka 856.27 CNY 2021-4-2 2022-4-2 Not
Yibin Kangrun 10,000.00 CNY 2020-11-13 2024-12-31 Not
Sichuan Konka 10,000.00 CNY 2018-5-28 2027-5-24 Not
Rushan Econ 11,321.00 CNY 2016-12-29 2026-12-28 Not
Wuhan Runyuan
46,672.00 CNY 2020-1-20 2040-1-19 Not
Wastewater
Subei Kangrun
77,600.00 CNY 2020-3-10 2035-3-9 Not
Water
Dayi Kangrun
26,620.00 CNY 2020-4-29 2035-4-10 Not
Water
Xi’an Kangrun 24,571.00 CNY 2020-12-17 2035-12-16 Not
Mengcheng
16,000.00 CNY 2021-1-27 2038-1-26 Not
Kangrun
Xi’an Kangrun 15,099.69 CNY 2021-2-5 2036-1-31 Not
Tongchuan
3,000.00 CNY 2021-3-25 2035-3-24 Not
Kangrun
233
Konka Group Co., Ltd. Interim Report 2021
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0,000) or not
Honghui
Lushan Kangrun
25,000.00 CNY 2021-4-16 2037-4-15 Not
Environmental
(2) The Company was secured party
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’0,00 ncy
or not
0)
OCT Group Co. Ltd. 150,000.00 CNY 2019-1-14 2022-1-14 Not
OCT Group Co. Ltd. 50,000.00 CNY 2019-6-3 2022-6-3 Not
OCT Group Co. Ltd. 150,000.00 CNY 2019-7-22 2022-7-22 Not
OCT Group Co. Ltd. 150,000.00 CNY 2020-6-22 2022-6-22 Not
OCT Group Co. Ltd. 50,000.00 CNY 2020-6-24 2022-6-19 Not
OCT Group Co. Ltd. 100,000.00 CNY 2021-1-8 2024-1-8 Not
OCT Group Co. Ltd. 50,000.00 CNY 2021-5-21 2024-5-21 Not
OCT Group Co. Ltd. 30,000.00 CNY 2021-6-24 2024-6-23 Not
Electronics Technology 30,000.00 CNY 2020-7-22 2021-7-22 Not
Electronics Technology 30,000.00 CNY 2020-8-4 2021-8-3 Not
Electronics Technology 20,000.00 CNY 2020-8-6 2020-8-5 Not
Yantai Baijiangyuan Business
Management Center (LP), Yantai
Fengqingtai Investment Center
(LP), Yantai Qingrunyuan Business 54,704.58 CNY 2018-8-19 2023-10-11 Not
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Zhu Xinming 2,450.00 CNY 2019-12-20 2022-12-20 Not
Zhu Xinming 2,450.00 CNY 2020-1-8 2022-1-8 Not
Zhu Xinming 2,450.00 CNY 2020-1-8 2023-1-8 Not
Zhu Xinming 4,900.00 CNY 2020-9-29 2023-9-29 Not
Zhu Xinming 6,370.00 CNY 2020-10-12 2021-10-11 Not
Zhu Xinming 4,851.00 CNY 2020-10-13 2021-10-11 Not
Zhu Xinming 1,029.00 CNY 2020-12-8 2023-12-8 Not
Zhu Xinming 945.18 CNY 2021-2-19 2022-2-18 Not
Zhu Xinming 1,493.69 CNY 2021-3-5 2022-2-18 Not
Zhu Xinming 490.00 CNY 2021-3-9 2022-3-8 Not
Zhu Xinming 504.70 CNY 2021-3-26 2022-3-8 Not
Zhu Xinming 1,162.52 CNY 2021-4-9 2022-2-18 Not
Zhu Xinming 651.70 CNY 2021-4-22 2022-4-21 Not
234
Konka Group Co., Ltd. Interim Report 2021
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’0,00 ncy
or not
0)
Zhu Xinming 296.07 CNY 2021-4-27 2022-4-21 Not
Zhu Xinming 1,031.14 CNY 2021-5-18 2022-2-18 Not
Zhu Xinming 304.66 CNY 2021-5-18 2022-3-8 Not
Zhu Xinming 1,739.50 CNY 2021-6-7 2021-7-9 Not
Zhu Xinming 93.12 CNY 2021-6-8 2022-2-18 Not
Zhu Xinming 980.00 CNY 2021-6-17 2021-7-9 Not
Zhu Xinming 810.34 CNY 2021-6-17 2022-2-18 Not
Zhu Xinming 44.03 CNY 2021-6-29 2022-2-18 Not
Jiangxi Xinzixin Real Estate Co.,
5,341.00 CNY 2019-3-18 2021-9-18 Not
Ltd.
Jiangxi Xinzixin Real Estate Co.,
2,695.00 CNY 2019-6-26 2022-6-25 Not
Ltd.
Jiangxi Xinzixin Real Estate Co.,
3,185.00 CNY 2019-10-30 2022-10-30 Not
Ltd.
Jiangxi Xinzixin Real Estate Co.,
2,940.00 CNY 2020-7-14 2023-7-14 Not
Ltd.
Jiangxi Xinzixin Real Estate Co.,
1,470.00 CNY 2020-8-4 2021-8-4 Not
Ltd.
Jiangxi Xinzixin Real Estate Co.,
4,900.00 CNY 2020-11-6 2023-12-1 Not
Ltd.
Jiangxi Xinzixin Real Estate Co.,
2,940.00 CNY 2021-6-22 2022-6-21 Not
Ltd.
Jiangxi Xinzixin Real Estate Co.,
2,450.00 CNY 2021-6-26 2022-6-25 Not
Ltd.
Yantai Baijiangyuan Business
Management Center (LP), Yantai
Fengqingtai Investment Center
(LP), Yantai Qingrunyuan Business 6,859.96 CNY 2020-6-5 2021-3-17 Not
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP), Yantai
Fengqingtai Investment Center
(LP), Yantai Qingrunyuan Business 2,450.00 CNY 2020-8-21 2021-8-20 Not
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP), Yantai 2,450.00 CNY 2020-9-22 2021-9-21 Not
Fengqingtai Investment Center
235
Konka Group Co., Ltd. Interim Report 2021
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’0,00 ncy
or not
0)
(LP), Yantai Qingrunyuan Business
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP), Yantai
Fengqingtai Investment Center
(LP), Yantai Qingrunyuan Business 1,470.00 CNY 2021-1-29 2022-1-28 Not
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP), Yantai
Fengqingtai Investment Center
(LP), Yantai Qingrunyuan Business 2,450.00 CNY 2021-3-24 2022-3-23 Not
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP), Yantai
Fengqingtai Investment Center
(LP), Yantai Qingrunyuan Business 3,920.00 CNY 2021-6-8 2022-6-7 Not
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP), Yantai
Fengqingtai Investment Center
(LP), Yantai Qingrunyuan Business 2,450.00 CNY 2021-6-18 2022-6-17 Not
Management Center (LP), Yantai
Qingjiangchuan Business
Management Center (LP)
Jiangxi Xinzixin Real Estate Co.,
970.20 CNY 2020-3-20 2022-3-19 Not
Ltd., Zhu Xinming
Jiangxi Xinzixin Real Estate Co.,
2,450.00 CNY 2020-5-19 2023-5-19 Not
Ltd., Zhu Xinming
Jiangxi Xinzixin Real Estate Co.,
4,263.00 CNY 2020-5-29 2022-11-29 Not
Ltd., Zhu Xinming
Jiangxi Xinzixin Real Estate Co.,
3,430.00 CNY 2020-6-24 2021-6-24 Not
Ltd., Zhu Xinming
Jiangxi Xinzixin Real Estate Co.,
2,450.00 CNY 2020-12-21 2022-12-31 Not
Ltd., Zhu Xinming
Jiangxi Xinzixin Real Estate Co., 2,940.00 CNY 2020-12-28 2021-12-27 Not
236
Konka Group Co., Ltd. Interim Report 2021
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’0,00 ncy
or not
0)
Ltd., Zhu Xinming
Jiangxi Xinzixin Real Estate Co.,
490.00 CNY 2020-12-30 2023-12-30 Not
Ltd., Zhu Xinming
Yudong Environmental Protection
14,210.00 CNY 2020-8-19 2023-10-31 Not
Technology Co., Ltd.
Chuzhou State-owned Assets
1,540.00 CNY 2020-11-25 2021-11-24 Not
Management Co., Ltd.
Chuzhou State-owned Assets
3,300.00 CNY 2020-12-24 2021-9-2 Not
Management Co., Ltd.
Chuzhou State-owned Assets
3,080.00 CNY 2021-3-25 2022-3-25 Not
Management Co., Ltd.
Chuzhou State-owned Assets
188.38 CNY 2021-4-2 2022-4-2 Not
Management Co., Ltd.
Hu Zehong 2,450.00 CNY 2020-8-4 2021-8-3 Not
Hu Zehong 183.75 CNY 2020-11-3 2021-11-2 Not
Hu Zehong 142.10 CNY 2020-11-4 2021-11-2 Not
Hu Zehong 1,014.30 CNY 2020-11-5 2021-11-2 Not
Hu Zehong 105.35 CNY 2020-11-16 2021-11-2 Not
Hu Zehong 24.50 CNY 2020-11-30 2021-11-2 Not
Hu Zehong 980.00 CNY 2021-1-24 2021-11-2 Not
Hu Zehong 2,205.00 CNY 2021-4-23 2021-11-2 Not
Hu Zehong 244.02 CNY 2021-4-25 2021-11-2 Not
Wu Guoren and Xiao Yongsong 7,080.50 USD 2019-12-31 2024-12-31 Not
Suiyong Rongxin Asset
2,450.00 CNY 2020-8-9 2021-8-8 Not
Management Co., Ltd.
Suiyong Rongxin Asset
2,842.00 CNY 2020-9-23 2021-9-22 Not
Management Co., Ltd.
Jiangxi Xinzixin Real Estate Co.,
Ltd., Xiong Muzhi, Zhu Qingming, 4,900.00 CNY 2019-6-26 2022-6-25 Not
Zeng Xiaohong
Chuzhou Hanshang Electric
4,533.96 CNY 2021-5-20 2024-5-19 Not
Appliance Co.,Ltd.
Hu Zehong, Liang Ruiling, Dai
2,756.74 CNY 2020-11-12 2022-11-12 Not
Yaojin
Hu Zehong, Liang Ruiling, Dai
980.00 CNY 2020-12-25 2023-12-25 Not
Yaojin
Hu Zehong, Liang Ruiling, Dai
367.50 CNY 2021-5-31 2023-8-31 Not
Yaojin
Shenzhen Musen Enterprise Co., 3,325.73 CNY 2019-3-19 2022-3-18 Not
237
Konka Group Co., Ltd. Interim Report 2021
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’0,00 ncy
or not
0)
Ltd.
Econ Technology 3,300.00 CNY 2020-11-13 2024-12-31 Not
Shenzhen Guoxin
3,120.44 CNY 2020-8-22 2021-12-9 Not
Micro-electronics Co., Ltd.
Shenzhen Unifortune Supply Chain
2,982.14 USD 2020-7-1 2021-12-31 Not
Management Co., Ltd.
Shenhzhen Trade Link Supply
980.00 USD 2020-7-20 2021-12-31 Not
Chain Management Co., Ltd.
Shenhzhen Trade Link Supply
668.36 USD 2020-7-20 2023-12-31 Not
Chain Management Co., Ltd.
Shenhzhen Trade Link Supply
1,761.06 USD 2020-9-1 2023-12-31 Not
Chain Management Co., Ltd.
AUJET INDUSTRY LIMITED 936.39 USD 2020-7-20 2023-12-31 Not
Shenzhen Henglongtong
477.18 CNY 2020-10-30 2021-10-29 Not
Technology Co., Ltd.
Shenzhen Henglongtong
11.18 CNY 2020-11-18 2021-10-29 Not
Technology Co., Ltd.
Shenzhen Henglongtong
552.72 CNY 2021-1-1 2021-12-31 Not
Technology Co., Ltd.
Guizhou Huajinrun Technology Co.
879.80 USD 2018-1-1 2021-12-31 Not
Ltd.
Shenzhen Henglongtong
Technology Co., Ltd., Guizhou 735.00 CNY 2018-1-1 2021-12-31 Not
Huajinrun Technology Co. Ltd.
4. Borrowings of Funds
Curre
Name Amount Start date Due date
ncy
Borrowing
OCT Group Co. Ltd. 111,060,000.00 CNY 2020-12-7 2022-12-9
OCT Group Co. Ltd. 500,000,000.00 CNY 2021-2-25 2024-2-25
OCT Group Co. Ltd. 500,000,000.00 CNY 2021-3-4 2024-2-25
OCT Group Co. Ltd. 500,000,000.00 CNY 2021-3-18 2024-2-25
OCT Group Co. Ltd. 500,000,000.00 CNY 2021-4-20 2024-2-25
OCT Group Co. Ltd. 500,000,000.00 CNY 2021-6-16 2024-2-25
E3info (Hainan) Technology Co.,
Ltd. 50,000,000.00 CNY 2021-6-5 2021-12-4
Chuzhou Hanshang Electric
Appliance Co., Ltd. 105,350,000.00 CNY 2021-2-1 2022-1-31
Yantai Qingrunyuan Business
Management Center (LP) 5,000,000.00 CNY 2020-12-25 2021-12-24
238
Konka Group Co., Ltd. Interim Report 2021
Curre
Name Amount Start date Due date
ncy
Yantai Qingrunyuan Business
Management Center (LP) 1,255,930.00 CNY 2021-3-5 2021-12-24
Yantai Baijiangyuan Business
Management Center (LP) 15,304,560.00 CNY 2021-3-5 2022-3-4
Yantai Qingjiangchuan Business
Management Center (LP) 433,920.00 CNY 2021-3-5 2022-3-4
Yantai Fengqingtai Investment
Center (LP) 6,805,590.00 CNY 2021-3-5 2022-3-4
Yantai Qingrunyuan Business
Management Center (LP) 20,961,700.00 CNY 2021-4-19 2022-4-11
Yantai Baijiangyuan Business
Management Center (LP) 51,280,900.00 CNY 2021-4-19 2022-4-11
Yantai Qingjiangchuan Business
Management Center (LP) 1,454,000.00 CNY 2021-4-19 2022-4-11
Yantai Fengqingtai Investment
Center (LP) 22,803,400.00 CNY 2021-4-19 2022-4-11
Total 2,891,710,000.00
Lending
Yibin OCT Sanjiang Properties 40,000,000.00 CNY
Co., Ltd. 2018-10-25 2021-10-24
Chongqing Konka Fuze Real Estate 188,430,000.00 CNY
Co., Ltd. 2020-11-25 2021-11-24
Chongqing Qingjia Electronics 8,900,000.00 CNY
Co., Ltd. 2019-4-12 2020-4-11
Yantai Kangyue Investment Co., 128,527,000.00 CNY
Ltd. 2020-12-16 2021-12-15
Chuzhou Kangxin Health Industry 132,880,000.00 CNY
Development Co., Ltd. 2020-8-24 2021-8-23
Chuzhou Kangxin Health Industry 20,000,000.00 CNY
Development Co., Ltd. 2020-12-10 2021-12-9
Chuzhou Kangxin Health Industry 7,350,000.00 CNY
Development Co., Ltd. 2021-1-6 2022-1-5
Chuzhou Kangxin Health Industry 167,580,000.00 CNY
Development Co., Ltd. 2021-3-26 2022-3-26
Chuzhou Kangjin Health Industry 74,436,380.39 CNY
Development Co., Ltd. 2021-1-13 2022-2-25
Chuzhou Kangjin Health Industry 24,500,000.00 CNY
Development Co., Ltd. 2021-6-15 2022-6-14
Chuzhou Kangjin Health Industry 58,800,000.00 CNY
Development Co., Ltd. 2020-9-16 2021-9-15
Yantai Kangyun Industrial 100,200,000.00 CNY
Development Co., Ltd. 2020-11-23 2021-11-22
Dongguan Konka Investment Co., 22,231,944.48 CNY
Ltd. 2020-8-6 2021-8-5
Dongguan Konka Investment Co., 7,000,000.00 CNY
Ltd. 2020-8-14 2021-8-5
Dongguan Konka Investment Co., 166,768,055.52 CNY 2020-8-14 2021-8-5
239
Konka Group Co., Ltd. Interim Report 2021
Curre
Name Amount Start date Due date
ncy
Ltd.
Total 1,147,603,380.39
5. Assets Transfer of Related Party
Same period of
Name Content Reporting Period
last year
Shenzhen Konka Holding Group Co., Assignment of
Ltd. patent rights 98,600,000.00
Shenzhen Konka Holding Group Co.,
Equity transfer 470,986,530.00
Ltd.
Total 569,586,530.00
6. Information on Remuneration for Key Management Personnel
Same period of last
Reporting Period
Item year
(RMB’0,000)
(RMB’0,000)
Total remuneration 1,000.44 1,229.88
(III) Balances with Related Party
1. Accounts Receivable
Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Accounts receivable:
Shenzhen Yaode
132,766,748.31 13,303,228.18 134,098,413.80 12,181,165.68
Technology Co., Ltd.
HOHOELECTRICAL&F
URNITURECO.,LIMITE 132,119,400.41 6,223,558.13 124,721,168.78 6,447,669.98
D
Anhui Kaikai Shijie
128,400,573.00 11,852,798.06 153,854,753.25 3,170,897.81
E-commerce Co., Ltd.
Korea Electric Group Co.,
79,874,580.14 1,629,441.43 11,876,557.98 242,281.78
Ltd.
OCT Group Co. Ltd. And
its subsidiaries, associated 76,596,326.16 1,745,927.10 68,938,082.60 1,503,214.49
enterprises
Shenzhen Konka
Information Network Co., 39,522,005.33 7,776,237.77 38,956,293.90 5,163,169.72
Ltd.
Shenzhen Jielunte
Technology Co., Ltd. and
8,149,766.81 179,454.56 38,228,985.16 974,569.50
its subsidiaries as well as
associated enterprises
Subtotal of other related
67,102,747.62 4,132,146.85 56,114,631.87 3,987,467.12
parties
Total 664,532,147.78 46,842,792.08 626,788,887.34 33,670,436.08
Notes receivable:
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Konka Group Co., Ltd. Interim Report 2021
Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Anhui Kaikai Shijie
8,391,829.94 2,231,739.87
E-commerce Co., Ltd.
Subtotal of other related
258,158.37 2,243,687.84
parties
Total 8,649,988.31 4,475,427.71
Interest receivable:
Yantai Kangyue
16,080,155.78 10,910,514.22
Investment Co., Ltd.
Chuzhou Kangxin Health
Industry Development 10,524,546.65
Co., Ltd.
Chongqing Konka Fuze
9,128,386.65 15,828,119.98
Real Estate Co., Ltd.
Dongguan Konka
7,648,251.21
Investment Co., Ltd.
Chuzhou Kangjin Health
Industry Development 5,178,239.76 7,564,562.01
Co., Ltd.
Yantai Kangyun Industrial
4,030,266.68
Development Co., Ltd.
Total 52,589,846.73 34,303,196.21
Dividends receivable
Chongqing Qingjia
547,848.62 547,848.62
Electronics Co., Ltd.
Binzhou Beihai Weiqiao
Solid Waste Treatment 4,400,000.00
Co., Ltd.
Total 547,848.62 4,947,848.62
Other receivables:
Chongqing Liangshan
Industrial Investment Co., 167,211,334.00 3,411,111.21 262,878,000.00 5,362,711.20
Ltd.
Jiangxi Meiji Enterprise
93,512,640.31 18,819,587.09 93,512,640.31 18,833,017.29
Co., Ltd.
Dai Rongxing 84,591,701.90 21,441,912.67 82,914,871.05 21,175,816.98
OCT Group Co., Ltd. and 28,129,378.46 14,236,483.61
its subsidiaries, associated 30,431,127.39 14,223,018.11
enterprises
Huanjia Group Co., Ltd. 23,095,103.20 9,229,041.28 23,065,103.20 9,226,041.28
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Konka Group Co., Ltd. Interim Report 2021
Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
HOHOELECTRICAL&F
URNITURECO.,LIMITE 5,519,421.05 112,596.19
D
Subtotal of other related
3,106,970.46 78,354.04 473,279.18 21,303.41
parties
Total 399,647,128.33 67,216,489.90 498,794,442.18 68,954,504.46
Prepayments:
Shenzhen Konka
Information Network Co., 40,191,388.22 40,220,535.22
Ltd.
Shenzhen Jielunte
Technology Co., Ltd. and 49,570.73 13,483,626.36
its subsidiaries
Puchuang Jiakang
2,498,172.50 5,111,181.00
Technology Co, Ltd.
HOHOELECTRICAL&F
URNITURECO.,LIMITE 7,655,079.81
D
Subtotal of other related
3,657,143.84 5,647,733.34
parties
Total 46,396,275.29 72,118,155.73
Current portion of
non-current assets:
OCT Group Co., Ltd. and
its subsidiaries, associated 40,000,000.00 75,000,000.00
enterprises
Feidi Technology
(Shenzhen) Co., Ltd. and 23,553,761.31 30,630,065.09
its subsidiaries
Subtotal of other related
63,553,761.31 105,630,065.09
parties
Other current assets:
Chuzhou Kangxin Health
Industry Development 327,810,000.00 152,880,000.00
Co., Ltd.
Dongguan Konka
196,000,000.00 196,000,000.00
Investment Co., Ltd.
Chongqing Konka Fuze
188,430,000.00 188,430,000.00
Real Estate Co., Ltd.
Chuzhou Kangjin Health
Industry Development 157,736,380.39 160,847,400.00
Co., Ltd.
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Konka Group Co., Ltd. Interim Report 2021
Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Yantai Kangyue
128,527,000.00 128,527,000.00
Investment Co., Ltd.
Yantai Kangyun Industrial
100,200,000.00
Development Co., Ltd.
Total 1,098,703,380.39 826,684,400.00
Long-term receivables:
Feidi Technology
(Shenzhen) Co., Ltd. and 4,059,369.45 12,749,762.58
its subsidiaries
Total 4,059,369.45 12,749,762.58
Other non-current
assets:
Chongqing Qingjia
11,225,866.61 10,867,888.84
Electronics Co., Ltd.
Total 11,225,866.61 10,867,888.84
2. Accounts Payable
Ending carrying Beginning carrying
Related party
amount amount
Accounts payable:
Chuzhou Hanshang Electric Appliance Co., Ltd. 35,166,221.43 9,462,196.04
Shenzhen Konka E-display Co., Ltd. and its subsidiaries 29,081,354.42 6,223,095.56
Korea Electric Group Co., Ltd. 27,090,040.12 3,481,603.74
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries
17,618,906.75 12,618,777.74
as well as its associated enterprises
Chongqing Lvfeng Renewable Resources Co., Ltd. 14,779,459.37 18,510,819.80
OCT Group Co., Ltd. and its subsidiaries, associated
13,776,879.66 10,042,155.58
enterprises
Anhui Kaikai Shijie E-commerce Co., Ltd. and its
7,861,878.28 2,633,353.42
subsidiaries
Wanjun Technology (Kunshan) Co., Ltd. 25,488.05 434,816.51
Subtotal of other related parties 17,610,256.05 19,203,126.03
Total 163,010,484.13 82,609,944.42
Notes payable:
Chongqing Lvfeng Renewable Resources Co., Ltd. 45,624,044.52
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries as 9,667,899.38 11,850,973.37
well as its associated enterprises
Subtotal of other related parties 4,718,551.51 5,234,811.10
Total 60,010,495.41 17,085,784.47
Contract liabilities/other non-current liabilities:
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Konka Group Co., Ltd. Interim Report 2021
Ending carrying Beginning carrying
Related party
amount amount
AUJET INDUSTRY LIMITED 15,249,270.80
Anhui Kaikai Shijie E-commerce Co., Ltd. 7,823,907.60 60,750.00
OCT Group Co., Ltd. and its subsidiaries, associated
6,061,436.71 15,357,854.41
enterprises
Sichuan Huayi Jiakang Technology Co., Ltd. 5,142,212.00
Shenzhen Jielunte Technology Co., Ltd. and its subsidiaries 27,430,700.76
Subtotal of other related parties 4,398,757.61 4,518,534.87
Total 30,851,677.12 47,307,090.04
Other payables:
Chuzhou Hanshang Electric Appliance Co., Ltd. 126,370,999.21 151,494,362.56
Yantai Baijiangyuan Business Management Center (LP) 67,664,518.51
E3info (Hainan) Technology Co., Ltd. 50,162,711.83 50,166,438.36
Yantai Fengqingtai Investment Center (LP) 30,088,822.08
Yantai Qingrunyuan Business Management Center (LP) 27,727,493.25
Feidi Technology (Shenzhen) Co., Ltd. and its subsidiaries 12,215,861.75 13,215,861.75
Chongqing Lvfeng Renewable Resources Co., Ltd. 11,143,969.16 5,800,221.60
OCT Group Co., Ltd. and its subsidiaries and associates 5,046,383.11 481,704.23
Subtotal of other related parties 10,374,508.26 6,763,074.18
Total 340,795,267.16 227,921,662.68
Current portion of non-current liabilities:
OCT Group Co., Ltd. and its subsidiaries 253,275.20 10,777,675.49
Total 253,275.20 10,777,675.49
Long-term payables:
OCT Group Co., Ltd. and its subsidiaries and associates 40,485,591.71
Total 40,485,591.71
XII. Contingency
(1) As the acceptor has not paid the commercial acceptance bills held by the Company after
maturity, the Company, as the plaintiff, filed a lawsuit with the court for bills with a total amount
of 200 million yuan. The debtors Hongtu Sanpower Technology Co., Ltd., Jiangsu Hongtu High
Technology Co., Ltd., Sanpower Group Co., Ltd., Nanjing Jiongjiong Electronic Technology Co.,
Ltd., and Shenzhen Qianhai Benniu Agricultural Technology Co., Ltd. bear joint and several
liability for the settlement of the bill amount and overdue interest. In July 2019, the company
filed a lawsuit with the court, and the court has preserved the defendant's corresponding property.
As of the date of issuance of this report, property execution is ongoing.
(2) As the acceptor has not paid the commercial acceptance bills held by the Company after
maturity, the Company as the plaintiff filed a lawsuit for bills of RMB 300,027,889.84 to the
court, asked bill acceptor and Shanghai Huaxin International Group Co., Ltd. involves bills before
244
Konka Group Co., Ltd. Interim Report 2021
hand the bill amount and default interest shall bear joint liability. As of the date of issuance of this
report, the case involving 150 million yuan in the case has been in the compulsory execution
stage, and the shareholder has been added as the person to be executed in the case; the courts of
the remaining 150 million cases have ruled that the defendant should pay bills and interest to
Konka Group Enforced. As of the date of issuance of this report, property execution is ongoing.
(3) As the commercial draft held by the company was not paid by the acceptor after it expired, the
company, as the plaintiff, filed a lawsuit with the court for a total amount of 78,300,690.24 yuan
of due notes, requesting an order from Hefei Huajun Trading Co., Ltd. and Wuhan Jialian
Agricultural Technology Co., Ltd. The Development Co., Ltd. paid the bill amount and default
interest to the company, and applied for property preservation. As of the date of issuance of this
report, the court has ruled that the defendant should pay the bills and corresponding interest to
Konka Group, and the case is being executed.
(4) Because the company's subsidiary Konka Commercial Factoring did not redeem the bills held
by the acceptor after maturity, the company, as the plaintiff, filed a lawsuit with the court for the
65,221,300.00 yuan due bills and required the bill acceptor to hand over the bills to the company
and the bills involved. And the default interest shall bear joint and several liability for repayment.
As of the date of issuance of this report, the second instance was ruled by the court to dismiss the
prosecution. At present, the above-mentioned commercial acceptance bill has not been honored
during the retrial of the case.
(5) The dispute among the Company and China Energy Electric Fuel Co., Ltd., China Energy
(Shanghai) Enterprise Co., Ltd., Shanghai Nengping Enterprise Co., Ltd. and Shenzhen Qianhai
Baoying Commercial Factoring Co., Ltd. over the right of recourse for bills involves the amount
of the subject matter of the lawsuit to be RMB 50 million and the corresponding interest. In
September 2018, the Company filed a lawsuit with Shenzhen Intermediate People’ Court, which
has preserved the defendant’s corresponding property. The judgment of this case has come into
effect. In the court's judgment, defendants such as China Energy Electric Fuel Co., Ltd. shall pay
the bill amount of RMB50 million and the relevant interest to the Company. During the execution
of the case, the court ruled that the Company should add the defendant shareholder as the
co-executed party. As of the date of issuance of this report, the case is in the execution stage.
(6) The dispute in bill recourse among the subsidiary of the Company, Konka Factoring
(Shenzhen) Co., Ltd., Tahoe Group Co., Ltd., Fuzhou Taijia Enterprise Co., Ltd. and Xiamen
Lianchuang Micro-electronics Co., Ltd., has involved with the underlying amount of RMB 50
million and relevant interest. In January 2019, the Company filed a lawsuit to Xiamen Municipal
Intermediate People’s Court, and the Company has applied for property preservation to the court.
As of the issuance date of this report, the case has not given judgment.
(7) The loan contract disputes related to the Company ’ s subsidiary Jiangxi Konka and its
subsidiary Xinfeng Microcrystaline, Jiangxi High Transparent Substrate, China Great Wall AMC
Jiangxi Branch, Zhu Xinming, Leng Sumin, Jiangxi Xinzixin, Jiangxi Xinxin Jian ’ an
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Konka Group Co., Ltd. Interim Report 2021
Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi Shanshi Science and Technology and
etc. Due to the affiliated parties of Jiangxi Konka’ original shareholder, i.e. Jiangxi Xinxin Jian’
an Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi Shanshi Technology, failed to
repay the loan on schedule. Therefore, China Great Wall AMC Jiangxi Branch filed a lawsuit and
demanded Jiangxi Xinxin Jian ’ an Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi
Shanshi Science and Technology to repay the loan principal of RMB 300 million, liquidated
damages of RMB 108,000 and interest of RMB 13.65 million. Guarantors Jiangxi Konka, Zhu
Xinming, Leng Sumin, Nano Crystallized Glass and Xinfeng Microcrystaline were required to
bear joint liability for the above debts.
On October 31, 2019, the Jiangxi Provincial Superior People’s Court ruled in first instance that
Jiangxi Xinxin Jian ’ an Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi Shanshi
Technology would repay the loan principal of RMB 100 million, interest and liquidated damages
to China Great Wall AMC Jiangxi Branch within 10 days from the effective date of the judgment
respectively. Jiangxi Konka, Zhu Xinming, Leng Sumin, Nano Crystallized Glass and Xinfeng
Microcrystaline shall bear joint and several liabilities for all debts determined by the above
judgment. The defendants dissatisfied with the first-instance judgment and filed an appeal, and
the Supreme People's Court has accepted this; in June 2021, the second-instance court ruled that
the case should be sent back to the first-instance court for retrial. As of the date of issuance of this
report, the case is still under trial.
The actual controller of Konka New Materials, Zhu Xinming, and his spouse, Leng Sumin, as
guarantors, provided a total of about RMB 143 million of real estate mortgage guarantee to Great
Wall AMC for the above loans. Zhu Xinming and Leng Sumin also provided joint liability
guarantees. In order to avoid the adverse impact of this case on the Company, the Company has
agreed in the acquisition agreement of Jiangxi Konka, Xinfeng Microcrystalline and nanometer
microcrystalline that all contingent debts incurred by Jiangxi Konka by the original shareholders
of Konka new material in the form of joint and several liability. Jiangxi Xinzixin Real Estate Co.,
ltd. has held a total of about RMB 243 million of real estate assets as the case of the
anti-guarantee mortgage to Konka group and went through the mortgage registration procedures.
As of the date of this report, the case is still on trial and the above commercial acceptance bill has
not been honored.
(8) The company's subsidiary Konka Huanjia Environmental Protection Technology Co., Ltd. and
Huanjia Group Co., Ltd., Dalian Jinshunda Material Recycling Co., Ltd. and other 14 companies
have filed a case involving disputes over the sale and purchase contract, and the amount involved
in the litigation is RMB 568,491,466.67. Konka Huanjia Environmental Technology Co., Ltd. has
applied for the court to seal up and freeze the defendant's corresponding property. As of the date
of issuance of this report, the second instance of this case is under trial and no effective judgment
has been issued for this case.
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Konka Group Co., Ltd. Interim Report 2021
(9) The company's subsidiary Konka Huanjia Environmental Protection Technology Co., Ltd. and
Huanjia Group Co., Ltd., Henan Haorui Renewable Resources Recycling Co., Ltd. and other
companies have filed a case involving disputes over the sale and purchase contract, and the
amount of the litigation involved is RMB 202,139,597.77. As of the date of issuance of this report,
no effective judgment has been issued for this case.
(10) The dispute between the Company and Wuhan Jialian Agricultural Technology Development
Co., Ltd., Peng Chaojun, He Jiaguo, He Jiayi, Liang Xiangzhou, Xu Yizheng, He Fan, Pang
Huasheng, Song Liangming, and Liang Xiangmei on the right of recourse for bills involved a
litigation subject amount of RMB200,000,000.00 and corresponding interest. In September 2020,
the company filed a lawsuit with the Wuhan Intermediate People's Court, and the company has
applied to the court for property preservation. As of the date of issuance of this report, no
effective judgment has been issued for this case.
(11) The dispute in sales contract between the subsidiary of the Company, Dongguan Konka and
Dongguan Gaoneng Polymer Materials Co., Ltd., Wang Dong, Shenzhen Xinlian Xingyao
Trading Co., Ltd., Shenzhen Jinchuan Qianchao Network Technology Co., Ltd., Puning Junlong
Trading Co., Ltd., Huang Zhihao have involved in RMB 90,100,998.78 (including RMB
52,718,868.54 of overdue payment, the corresponding liquidated damages and litigation costs). In
January 2021, the court opened the case, and the case is currently being heard in Shenzhen
Nanshan District People's Court. As of the date of issuance of this report, no effective judgment
has been issued for this case.
(12) The company's subsidiary Anhui Konka Electronics Co., Ltd., Shanghai Likai Logistics Co.,
Ltd. Shenzhen Branch and Shanghai Likai Logistics Co., Ltd. in the case of maritime and sea
freight forwarding agency contract disputes, the amount involved in the litigation is USD
5,393,051.14. In January 2020, the company filed a lawsuit in the court. As of the date of issuance
of this report, the case is in the execution stage, and the company has applied to the court for
property preservation.
(13) The dispute in capital increase among the subsidiary of the Company, Shenzhen Nianhua,
Fang Xianglong and Jiang Yan has involved in RMB 20,451,631.52, and Shenzhen Nianhua has
applied for property preservation to the court. As of the date of issuance of this report, the case
has been completed, and the Shenzhen Court of International Arbitration has issued an award,
which is currently being implemented.
XIII. Commitment and Contingency
1. Capital Commitments
Item Ending balance Beginning balance
Commitments signed but hasn’t been
recognized in financial statements
—Commitment on construction and purchase
277,628,800.00
of long-lived assets
—Contract with large amount 4,476,840,238.01 4,310,308,187.10
247
Konka Group Co., Ltd. Interim Report 2021
—Foreign investment commitments
Total 4,476,840,238.01 4,587,936,987.10
2. Operating Lease Commitments
As of the balance sheet date, the irrevocable operating lease commitments that the Company
signed were as followed:
Item Ending balance Beginning balance
Minimum lease payments of irrevocable
operating lease
1 year after balance date 52,100,737.92 52,265,285.12
2 years after balance date 19,853,468.21 36,586,799.43
3 years after balance date 8,034,015.25 8,779,702.07
Following years 27,532,381.93 26,662,526.63
Total 107,520,603.31 124,294,313.25
3. Other Commitments
As of 30 June 2021, there were no other significant commitments for the Company to disclose.
XIV. Events after Balance Sheet Date
No significant non-adjusted events
XV. Other Significant Events
On 2 August 2021, it was determined during the 44th meeting of the 9th Board of Directors of the
Company that, the 11.70% equity held by the Company in Econ Technology Co., Ltd. would be
transferred in the form of public listing in the State-owned Property Right Exchange in
accordance with the procedures for trading and listing of state-owned property rights, with the
listing price thereof being expected not to be lower than RMB306 million. If equity transfer
procedures can be completed within 2021, and the fact that neither the book value nor the listing
price of Econ Technology Co., Ltd. is lower than RMB306 million on 30 June 2021 is taken as
calculation basis, the amount of after-tax gains arising from the Company's disposal of long-term
equity investment is expected to be roughly RMB22,572,900, with the remaining equity being
calculated by the equity method and remeasured at fair value. And accordingly, the total amount
of after-tax gains therefrom is expected to be roughly RMB196,637,800.
On 2 August 2021, it was determined during the 44th meeting of the 9th Board of Directors of the
Company that, the 70.00% equity of Shenzhen Yipingfang Network Technology Co., Ltd. held by
the Company would be transferred in the form of public listing in the State-owned Property Right
Exchange in accordance with the procedures for trading and listing of state-owned property rights,
with the listing price thereof being expected not to be lower than RMB2.8 billion. If equity
transfer procedures can be completed within 2021, and the fact that neither the book value nor the
listing price of Yipingfang Network Technology Co., Ltd. is lower than RMB2.8 billion on 30
June 2021 is taken as calculation basis, the amount of after-tax gains arising from the Company's
disposal of long-term equity investment is expected to be roughly RMB1,812,680,200, with the
remaining equity being calculated by the equity method and remeasured at fair value. And
accordingly, the total amount of after-tax gains therefrom is expected to be roughly
RMB913,909,400.
XVI. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Listed by Withdrawal Method of Expected Credit Loss
Ending balance
Category
Carrying amount Bad debt provision Carrying value
248
Konka Group Co., Ltd. Interim Report 2021
Withd
Propor rawal
Amount tion Amount propo
(%) rtion
(%)
Accounts
receivable for
which expected
credit loss 945,635,734.73 12.04 555,833,448.49 58.78 389,802,286.24
withdrawn
separately
Accounts
receivable for
which expected
credit loss
withdrawn by
group
Of which:
Aging group 576,499,022.45 7.34 181,416,522.05 31.47 395,082,500.40
Related
party group 6,331,764,320.94 80.62 6,331,764,320.94
Subtotal of
groups 6,908,263,343.39 87.96 181,416,522.05 2.63 6,726,846,821.34
Total 7,853,899,078.12 100.00 737,249,970.54 9.39 7,116,649,107.58
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category Withdr
Propor Carrying value
awal
Amount tion Amount
proport
(%)
ion (%)
Accounts
receivable for
which
expected credit 948,510,887.48 18.22 552,922,400.60 58.29 395,588,486.88
loss withdrawn
separately
Accounts
receivable for
which
expected credit
loss withdrawn
by group
Of which:
Aging group 574,995,507.05 11.05 178,675,741.20 31.07 396,319,765.85
Related
party group 3,681,343,439.12 70.73 3,681,343,439.12
Subtotal of
groups 4,256,338,946.17 81.78 178,675,741.20 4.20 4,077,663,204.97
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Konka Group Co., Ltd. Interim Report 2021
Beginning balance
Carrying amount Bad debt provision
Category Withdr
Propor Carrying value
awal
Amount tion Amount
proport
(%)
ion (%)
Total 5,204,849,833.65 100.00 731,598,141.80 14.06 4,473,251,691.85
1) Withdrawal of Expected Credit Loss Separately
Ending balance
Name Withdrawal
Bad debt
Carrying amount proportion Reason
provision
(%)
CEFC (Shanghai)
Group Co., Ltd. 300,018,021.01 240,014,416.81 80.00 Debt default
Tewoo Group Judicial
Co., Ltd. 200,000,000.00 90,000,000.00 45.00 reorganization
Jiangsu Hongtu
Sanbao
Agreement
High-Tech 200,000,000.00 80,000,000.00 40.00 reorganization
Technology Co.,
Ltd.
China Nuclear
Engineering
Construction 72,639,096.65 22,374,785.74 30.80 Increased credit risk
Group Co., Ltd.
CCCC No.1
Navigation Expected to be
Bureau No.1 55,438,105.00 48,915,975.00 88.24 difficult to recover in
Engineering Co., full
Ltd
Expected to be
Other 117,540,512.07 74,528,270.94 63.41 difficult to recover in
full
Total 945,635,734.73 555,833,448.49 58.78
2) Withdrawal of Expected Credit Loss by Group
① Among Groups, Withdrawal of Expected Credit Loss by Aging
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision proportion
(%)
Within 1 year 350,252,796.23 7,145,157.04 2.04
1 to 2 years 13,763,442.36 1,379,096.92 10.02
2 to 3 years 49,407,659.29 11,210,597.89 22.69
3 to 4 years 3,967,694.68 2,574,240.31 64.88
Over 4 years 159,107,429.89 159,107,429.89 100.00
250
Konka Group Co., Ltd. Interim Report 2021
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision proportion
(%)
Total 576,499,022.45 181,416,522.05 31.47
②Among Groups, Withdrawal of Expected Credit Loss by Adopting Other Method
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision proportion
(%)
Related party group 6,331,764,320.94
Total 6,331,764,320.94
Listed by aging group
Aging Ending balance
Within 1 year 6,115,727,810.61
1 to 2 years 782,294,915.68
2 to 3 years 774,788,936.76
3 to 4 years 6,993,650.35
Over 4 years 174,093,764.72
Subtotal 7,853,899,078.12
Less: bad debt provision 737,249,970.54
Total 7,116,649,107.58
(3) Information of Bad Debt Provision in the Reporting Period
Changed amount
Colle
Beginning cted
Category Write-off Ending balance
balance Withdrawn or
or verified
rever
sed
Accounts
Receivable
Bad Debt 731,598,141.80 5,651,828.74 737,249,970.54
Provision
Total 731,598,141.80 5,651,828.74 737,249,970.54
(4) Actual Verification of Accounts Receivable
No actual verified accounts receivable in the Reporting Period.
(5) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Total amount of Top 5 of ending balance of accounts receivable collected according to arrears
party was RMB6,330,799,109.11 accounting for 80.61% of total ending balance of accounts
receivable. Total ending balance of bad debt provision withdrawn was RMB0.00.
(6) There Was No Account Receivable Terminated the Recognition owning to the Transfer of the
Financial Assets.
(7) There Was No Asset and Liability Formed due to the Transfer of Accounts Receivable and
Continued Involvement in the Reporting Period.
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Konka Group Co., Ltd. Interim Report 2021
2. Other Receivables
Item Ending balance Beginning balance
Interest receivable 53,913,996.27 41,138,869.97
Dividends receivable 746,582,755.50 749,431,635.50
Other receivables 10,389,265,221.89 9,244,298,847.60
Total 11,189,761,973.66 10,034,869,353.07
2.1 Interest receivable
Item Ending balance Beginning balance
Term deposits 1,322,411.54 6,830,211.26
Entrustment loans 52,589,846.73 34,303,196.21
Factoring interest 1,738.00 5,462.50
Total 53,913,996.27 41,138,869.97
2.2 Dividends receivable
Investee Ending balance Beginning balance
Hong Kong Konka Limited 247,959,840.00 250,808,720.00
Suining Konka Industrial Park
Development Co., Ltd. 280,000,000.00 280,000,000.00
Dongguan Konka Electronic Co.,
Ltd. 218,622,915.50 218,622,915.50
Total 746,582,755.50 749,431,635.50
2.3 Other receivables
(1) Classified by Account Nature
Nature Ending carrying amount Beginning carrying amount
Deposit and margin 9,782,440.75 9,180,409.27
Intercourse funds among
subsidiaries 10,713,099,519.74 9,378,801,127.33
Intercourse funds with other
related parties 54,319,116.46 118,043,953.69
Energy-saving subsidy receivable 141,549,150.00 141,549,150.00
Other 43,603,862.77 89,315,201.21
Total 10,962,354,089.72 9,736,889,841.50
(2) Withdrawal of Bad Debt Provision
Phase I Phase II Phase III
Expected
Expected credit
Expected credit losses
Bad debt provision losses for the Total
credit losses for the entire
entire duration
over the next duration (no
(with credit
12 months credit
impairment)
impairment)
Balance on 1 January
1,901,190.46 18,128,678.66 472,561,124.78 492,590,993.90
2021
In the Reporting Period,
Carrying amount of other
252
Konka Group Co., Ltd. Interim Report 2021
Phase I Phase II Phase III
Expected
Expected credit
Expected credit losses
Bad debt provision losses for the Total
credit losses for the entire
entire duration
over the next duration (no
(with credit
12 months credit
impairment)
impairment)
receivables on 1 January
2021:
— — Transferred to the
-679,520.48 679,520.48
Phase II
— — Transferred to the
-233,220.74 233,220.74
Phase III
— — Transferred back to
the Phase II
— — Transferred back to
the Phase I
Withdrawal -750,500.52 2,014,233.70 79,234,140.75 80,497,873.93
Recovery
Write-off
Verification
Other changes
Balance on 30 June
471,169.46 20,589,212.10 552,028,486.27 573,088,867.83
2021
Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within 1 year, the loss provision
is measured according to the expected credit losses in the next 12 months.
The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed 1 year, the loss provision is measured based on the expected credit losses for
the entire duration.
The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred, the loss provision is measured according to the credit losses that
have occurred throughout the duration.
(3) Withdrawing bad debt provision for other receivables according to group
Ending balance
Carrying amount Bad debt provision
Withd
Category Propo rawal Carrying value
Amount rtion Amount propo
(%) rtion
(%)
Other
receivables
with significant
1,827,625,727.00 16.67 552,028,486.27 30.20 1,275,597,240.73
individual
amount and
make
253
Konka Group Co., Ltd. Interim Report 2021
Ending balance
Carrying amount Bad debt provision
Withd
Category Propo rawal Carrying value
Amount rtion Amount propo
(%) rtion
(%)
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
credit risks
characteristics
Aging group 73,490,701.10 0.67 18,562,326.44 25.26 54,928,374.66
Low-risk group 11,022,883.60 0.10 2,498,055.12 22.66 8,524,828.48
Related party
group 9,050,214,778.02 82.56 9,050,214,778.02
Subtotal of
groups 9,134,728,362.72 83.33 21,060,381.56 0.23 9,113,667,981.16
Total 10,962,354,089.72 100.00 573,088,867.83 5.23 10,389,265,221.89
(Continued)
Beginning balance
Carrying amount Bad debt provision
Withd
Category Propo rawal
Carrying value
Amount rtion Amount propo
(%) rtion
(%)
Other
receivables with
significant
individual
amount and
make
1,764,691,060.74 18.12 472,561,124.78 26.78 1,292,129,935.96
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
254
Konka Group Co., Ltd. Interim Report 2021
credit risks
characteristics
Aging group 128,885,012.86 1.32 15,447,446.31 11.99 113,437,566.55
Low-risk
group
17,273,953.16 0.18 4,582,422.81 26.53 12,691,530.35
Related party
group
7,826,039,814.74 80.38 7,826,039,814.74
Subtotal of
groups
7,972,198,780.76 81.88 20,029,869.12 0.25 7,952,168,911.64
Total 9,736,889,841.50 100.00 492,590,993.90 5.06 9,244,298,847.60
(4) Listed by aging
Aging Ending balance
Within 1 year 6,503,725,089.94
1 to 2 years 1,554,353,123.80
2 to 3 years 2,474,591,150.18
3 to 4 years 118,889,752.90
4 to 5 years 45,359,999.98
Over 5 years 265,434,972.92
Subtotal 10,962,354,089.72
Less: bad debt provision 573,088,867.83
Total 10,389,265,221.89
(5) Bad Debt Provision for Other Receivables
The amount of bad debt provision for this year was RMB80,497,873.93, and other receivables
actually written off in this period were RMB0.00.
(6) Other receivables with top five ending balances collected by debtors.
In Reporting Period, the total amount of the top five other receivables collected by debtors at the
end of the Reporting Period was RMB7,626,568,292.03, accounting for 69.57% of the total
amount of other receivables at the end of the Reporting Period, and the total amount of the
corresponding accrued bad debt reserves at the end of the Reporting Period was
RMB393,127,325.57.
(7) There Was No Other Receivables Terminated the Recognition owning to the Transfer of the
Financial Assets.
(8) There Was No Asset and Liability Formed by the Transfer and the Continues Involvement of
Other Receivables.
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Konka Group Co., Ltd. Interim Report 2021
3. Long-term Equity Investment
（1）Category of Long-term Equity Investment
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment to
7,376,927,068.77 102,532,484.69 7,274,394,584.08 7,083,817,068.77 102,532,484.69 6,981,284,584.08
subsidiaries
Investment to
associates and joint 1,782,484,259.87 26,166,078.16 1,756,318,181.71 1,851,048,093.64 26,166,078.16 1,824,882,015.48
ventures
Total 9,159,411,328.64 128,698,562.85 9,030,712,765.79 8,934,865,162.41 128,698,562.85 8,806,166,599.56
（2）Investment to Subsidiaries
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Konka Ventures 2,550,000.00 2,550,000.00
Anhui Konka 122,780,937.98 122,780,937.98
Konka Factoring 300,000,000.00 300,000,000.00
Konka Unifortune 15,300,000.00 15,300,000.00
Wankaida 10,000,000.00 10,000,000.00
Dongguan Konka 274,783,988.91 274,783,988.91
Konka Europe 3,637,470.00 3,637,470.00
Konka Electrical
1.00 1.00 10,732,484.69
Appliances
Telecommunication
360,000,000.00 360,000,000.00
Technology
256
Konka Group Co., Ltd. Interim Report 2021
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Mobile
100,000,000.00 100,000,000.00
Interconnection
Anhui Tongchuang 779,702,612.22 779,702,612.22
Kangjiatong 15,300,000.00 15,300,000.00
Pengrun Technology 25,500,000.00 25,500,000.00
Dongguan Packing 8,602,009.10 8,602,009.10
E2info 19,322,040.00 19,322,040.00
Beijing Konka
200,000,000.00 200,000,000.00
Electronic
Konka Circuit 91,000,000.00 188,950,000.00 279,950,000.00
Hong Kong Konka 781,828.61 781,828.61
Konka Investment 500,000,000.00 500,000,000.00
Electronics
1,000,000,000.00 1,000,000,000.00
Technology
Yantai Laikang
Econ Technology 688,500,000.00 688,500,000.00
Konka Huanjia 91,800,000.00
Shanghai Konka 40,000,000.00 40,000,000.00
Jiangxi Konka 689,680,000.00 689,680,000.00
Shenzhen Nianhua 30,000,000.00 30,000,000.00
Shenzhen
100,000,000.00 100,000,000.00
KONSEMI
257
Konka Group Co., Ltd. Interim Report 2021
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Konka
50,000.00 50,000.00
Eco-Development
Suining Konka 200,000,000.00 200,000,000.00
Konka Ronghe 5,100,000.00 5,100,000.00
Suining Electronic
Technological 200,000,000.00 200,000,000.00
Innovation
Shenzhen Chuangzhi
10,000,000.00 10,000,000.00
Electrical Appliances
Kanghong (Yantai)
Environmental 1,025,100.00 1,025,100.00
Protection
Chongqing
25,500,000.00 25,500,000.00
Kangxingrui
Chongqing
Optoelectronic 933,333,333.33 933,333,333.33
Institute
Xinying
56,000,000.00 36,520,000.00 92,520,000.00
Semiconductor
Jiangkang
(Shanghai)
Technology
Ningbo Kanghanrui
90,000,000.00 90,000,000.00
Electrical Appliances
258
Konka Group Co., Ltd. Interim Report 2021
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Konka Zhizao 510.00 510.00
Suining Jiarun Real
10,000,000.00 10,000,000.00
Estate
Yantai Kangyun 1,530,000.00 1,530,000.00
Chongqing Kanglei
Yibin Kangrun 67,000,000.00 67,000,000.00
Henan Kangxin Real
Estate
Konka Material 4,304,752.93 4,304,752.93
Shenzhen Kangxin
25,500,000.00 25,500,000.00
Real Estate
Shaanxi Konka
34,170,000.00 34,170,000.00
Intelligent
Industrial and Trade
5,000,000.00 5,000,000.00
Technology
Konka Huazhong 30,000,000.00 30,000,000.00
Total 6,981,284,584.08 320,140,000.00 27,030,000.00 7,274,394,584.08 102,532,484.69
（3）Investment to Joint Ventures and Associated Enterprises
Increase-decrease
Balance at the end of
Investee last year at the Gains and losses Adjustment of other
Additional
beginning of the year Reduced investment recognized under the comprehensive
investment
equity method income
Anhui Kaikai Shijie E-commerce Co., Ltd. 17,400,738.44
259
Konka Group Co., Ltd. Interim Report 2021
Increase-decrease
Balance at the end of
Investee last year at the Gains and losses Adjustment of other
Additional
beginning of the year Reduced investment recognized under the comprehensive
investment
equity method income
Wanjun Technology (Kunshan) Co., Ltd. 121,579,584.17 -2,046,465.83
Kunshan Kangsheng 175,254,554.65 32,849,354.55
Chutian Dragon Co., Ltd. 650,206,807.02 4,824,758.43
Helongjiang Longkang Zhijia Technology
1,100,842.29 -3,709.66
Co., Ltd.
Konka Green, Konka Technology 75,261,304.56 75,261,304.56
Shaanxi Silk Road Cloud Intelligent Tech
17,649,295.81 -1,596,222.64
Co., Ltd.
Shenzhen Konka Information Network Co.,
Ltd.
Shenzhen Zhongbin Konka Technology Co.,
2,214,307.33 -2,214,307.33
Ltd.
Shenzhen Konka Intelligent Electrical
3,813,134.28 -1,441,954.44
Apparatus Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd. 58,400,000.00 -2,064,227.96
Shenzhen Yaode Technology Co., Ltd. 219,128,661.62 -4,569,192.27
Wuhan Tianyuan Environmental Protection
304,654,243.69 13,222,348.47
Co., Ltd.
Konka E-display 11,774,141.26
Chuzhou Konka Technology Industry
5,899,324.39 -1,172,317.71
Development Co., Ltd.
Chuzhou Kangjin Health Industrial 15,251,484.01 -6,410,036.65
260
Konka Group Co., Ltd. Interim Report 2021
Increase-decrease
Balance at the end of
Investee last year at the Gains and losses Adjustment of other
Additional
beginning of the year Reduced investment recognized under the comprehensive
investment
equity method income
Development Co., Ltd.
Haimen Kangjian Technology Industrial
19,044,986.77 -3,070,358.71
Park Operations and Management Co., Ltd.
Shenzhen Kangyue Enterprise Co., Ltd. 3,348,297.05 -170,576.56
Dongguan Konka Investment Co., Ltd. 42,158,277.63 -12,122,313.26
Chongqing Konka Real Estate Development
15,778,426.04 -7,987,220.86
Co., Ltd.
Chongqing Chengda Real Estate Co., Ltd. 13,684,752.24 -303,372.41
Chuzhou Kangxin Health Industry
14,704,242.50 -1,310,518.75
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 36,574,609.73 3,310,556.06
Shenzhen Kangpeng Digital Technology
6,000,000.00 -1,063,135.76
Co., Ltd.
Yantai Kangyun Industrial Development
1,021,017.42 -264,633.34
Co., Ltd.
Total 1,824,882,015.48 7,021,017.42 75,261,304.56 6,396,453.37
(Continued)
Increase/decrease
Cash bonus or Ending balance
Other Withdrawal of Ending balance
Investee profits of depreciation
equity impairment Other (carrying value)
announced to reserve
changes provision
issue
261
Konka Group Co., Ltd. Interim Report 2021
Increase/decrease
Cash bonus or Ending balance
Other Withdrawal of Ending balance
Investee profits of depreciation
equity impairment Other (carrying value)
announced to reserve
changes provision
issue
Anhui Kaikai Shijie E-commerce Co., Ltd. 17,400,738.44
Wanjun Technology (Kunshan) Co., Ltd. 119,533,118.34
Kunshan Kangsheng 208,103,909.20
Chutian Dragon Co., Ltd. 6,720,000.00 648,311,565.45
Helongjiang Longkang Zhijia Technology Co.,
1,097,132.63 2,470,398.03
Ltd.
Konka Green, Konka Technology
Shaanxi Silk Road Cloud Intelligent Tech Co.,
16,053,073.17
Ltd.
Shenzhen Konka Information Network Co.,
5,158,909.06
Ltd.
Shenzhen Zhongbin Konka Technology Co.,
Ltd.
Shenzhen Konka Intelligent Electrical
2,371,179.84
Apparatus Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd. 56,335,772.04 18,536,771.07
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Wuhan Tianyuan Environmental Protection
317,876,592.16
Co., Ltd.
Konka E-display 11,774,141.26
Chuzhou Konka Technology Industry 4,727,006.68
262
Konka Group Co., Ltd. Interim Report 2021
Increase/decrease
Cash bonus or Ending balance
Other Withdrawal of Ending balance
Investee profits of depreciation
equity impairment Other (carrying value)
announced to reserve
changes provision
issue
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
8,841,447.36
Development Co., Ltd.
Haimen Kangjian Technology Industrial Park
15,974,628.06
Operations and Management Co., Ltd.
Shenzhen Kangyue Enterprise Co., Ltd. 3,177,720.49
Dongguan Konka Investment Co., Ltd. 30,035,964.37
Chongqing Konka Real Estate Development
7,791,205.18
Co., Ltd.
Chongqing Chengda Real Estate Co., Ltd. 13,381,379.83
Chuzhou Kangxin Health Industry
13,393,723.75
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 39,885,165.79
Shenzhen Kangpeng Digital Technology Co.,
4,936,864.24
Ltd.
Yantai Kangyun Industrial Development Co.,
756,384.08
Ltd.
Total 6,720,000.00 1,756,318,181.71 26,166,078.16
263
Konka Group Co., Ltd. Interim Report 2021
4. Operating Revenue and Cost of Sales
Reporting Period Same Period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main
1,049,267,610.79 1,005,212,983.03 2,574,146,637.40 2,316,701,232.32
operations
Other
152,113,795.91 74,048,575.31 801,299,393.49 634,398,598.53
operations
Total 1,201,381,406.70 1,079,261,558.34 3,375,446,030.89 2,951,099,830.85
5. Investment Income
Same Period of
Item Reporting Period
last year
Long-term equity investment income accounted
by cost method
Long-term equity investment income accounted
6,396,453.37 882,170.97
by equity method
Investment income from disposal of long-term
167,692,365.06 471,523,601.25
equity investment
Interest income from holding of debt obligation
860,000.00 3,070,000.00
investments
Investment income from disposal of trading
3,405,333.03
financial assets
Income from entrust financial products and entrust
29,983,956.45
loans
Investment income from disposal of financial
21,845,500.00
assets at fair value through profit or loss
Total 196,794,318.43 508,865,061.70
XVII. Approval of Financial Statements
The financial statement was approved on 26 August 2021 by the Board of Directors.
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Item Amount Note
Gain-Loss arising from disposal of non-current assets 268,231,018.80
Tax rebates, reductions or exemptions due to approval
beyond authority or the lack of official approval
documents
Government subsidies recognized in the current period,
except for those acquired in the ordinary course of
714,611,090.13
business or granted at certain quotas or amounts
according to the government’s unified standards
Capital occupation charges on non-financial enterprises
that are recorded into current profit or loss
Gains due to that the investment costs for the Company
to obtain subsidiaries, associates and joint ventures are
264
Konka Group Co., Ltd. Interim Report 2021
Item Amount Note
lower than the enjoyable fair value of the identifiable
net assets of the investees when making the investments
Gain/Loss on non-monetary asset swap
Gain/Loss on entrusting others with investments or
asset management
Asset impairment provisions due to acts of God such as
natural disasters
Gain/Loss from debt restructuring
Expenses on business reorganization, such as expenses
on staff arrangements, integration, etc.
Gain/Loss on the part over the fair value due to
transactions with distinctly unfair prices
Current net profit or loss of subsidiaries acquired in
business combination under the same control from
period-beginning to combination date
Gain/Loss incurred from contingency unrelated to the
Company’s normal operating businesses.
Gain/loss from change of fair value of trading financial
assets and liabilities, and derivative financial assets and
liabilities, and investment gains from disposal of trading
financial assets and liabilities, and derivative financial 74,929,272.98
assets and liabilities, and investment in other obligatory
rights, other than valid hedging related to the
Company’s common businesses
Reverse of bad debt provision of accounts receivable
individually conducting impairment test
Gain/loss on entrustment loans 36,464,688.55
Gain/loss on change in fair value of investment property
of which the subsequent measurement is carried out
adopting fair value method
Effect on current profit or loss when a one-off
adjustment is made to current profit or loss according to
requirements of taxation, accounting and other relevant
laws and regulations
Custody fee income when entrusted with operation
Other non-operating income and expense other than the
15,023,790.96
above
Project confirmed with the definition of non-recurring
gains and losses
Subtotal 1,109,259,861.42
Less: Income tax effects 229,844,293.22
Non-controlling interests effects (after tax) 83,841,010.78
Total 795,574,557.42
(1) The explanation of the Company to “Project confirmed with the definition of non-recurring gains and
losses” and define non-recurring gains and losses as recurring gains and losses according to the nature and
features of normal business operations of company.
Item Amount Reason
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Konka Group Co., Ltd. Interim Report 2021
Item Amount Reason
Government subsidies which are closely related to the
Software tax normal business of the company and which are in
6,085,265.89
refund accordance with national policies and certain standard
quota or quantitative amount
Total 6,085,265.89
2. Return on Equity and Earnings Per Share
Weighted average ROE EPS (Yuan/share)
Profit as of Reporting Period
(%) EPS-basic EPS-diluted
Net profit attributable to ordinary
1.01% 0.0355 0.0355
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
-8.38% -0.2927 -0.2927
deduction of non-recurring profit or
loss
Weighted average ROE EPS (Yuan/share)
Profit as of Reporting Period
(%) EPS-basic EPS-diluted
The net profit of the common
shareholders of a company
The Board of Directors
Konka Group Co., Ltd.
27 August 2021
266
