Konka Group Co., Ltd. Third Quarterly Report 2021
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2021-87
Bond Code: 114423, 114489 Bond Name: 19 Konka 02, 19 Konka 04
114524, 114894 19 Konka 06, 21 Konka 01
133003, 133040 21 Konka 02, 21 Konka 03
KONKA GROUP CO., LTD.
THIRD QUARTERLY REPORT 2021
Konka Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the
Company’s Board of Directors hereby guarantee that the contents of this Report are true, accurate and
complete and free of any misrepresentations, misleading statements or material omissions.
Important Notes:
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of the Company hereby guarantee that the contents of this Report
are true, accurate and complete and free of any misrepresentations, misleading statements or material
omissions, and collectively and individually accept legal responsibility for such contents.
2. The Company’s legal representative, Chief Financial Officer (CFO), and head of the financial
department (equivalent to financial manager) hereby guarantee that the financial statements carried in
this Report are factual, accurate and complete.
3. Indicate by tick mark whether the financial statements in this Report have been audited by an
independent auditor.
□Yes √ No
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q3 2021 YoY change (%) Q1-Q3 2021 YoY change (%)
Operating revenue (RMB) 9,816,584,505.55 -20.04% 31,626,746,378.63 6.13%
Net profit attributable to the listed
-211,828,259.25 -140.68% -126,378,339.68 -120.54%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -343,893,316.75 59.25% -1,054,017,954.60 29.45%
exceptional gains and losses (RMB)
Net cash generated from/used in
—— —— -1,442,234,383.09 -22.65%
operating activities (RMB)
Basic earnings per share (RMB/share) -0.0880 -140.70% -0.0525 -120.54%
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Konka Group Co., Ltd. Third Quarterly Report 2021
Diluted earnings per share -0.0880 -140.70% -0.0525 -120.54%
(RMB/share)
Weighted average return on equity (%) -2.54% -8.81% -1.51% -8.88%
30 September 2021 31 December 2020 Change (%)
Total assets (RMB) 53,000,401,444.22 49,876,267,493.61 6.26%
Equity attributable to the listed
8,065,742,160.82 8,428,640,176.97 -4.31%
company’s shareholders (RMB)
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q3 2021 Q1-Q3 2021 Note
Gain or loss on disposal of non-current assets (inclusive of
66,306,638.40 334,537,657.20
impairment allowance write-offs)
Government grants through profit or loss (exclusive of
government grants continuously given in the Company’s
35,523,626.41 750,134,716.54
ordinary course of business at fixed quotas or amounts as
per the government’s policies and standards)
Gain or loss on fair-value changes on held-for-trading
financial assets and liabilities & income from disposal of
held-for-trading financial assets and liabilities and
23,284,757.37 98,214,030.35
available-for-sale financial assets (exclusive of the
effective portion of hedges that arise in the Company’s
ordinary course of business)
Gain or loss on loan entrustments 20,982,294.05 57,446,982.60
Non-operating income and expense other than the above 42,034,278.57 57,058,069.53
Less: Income tax effects 43,387,800.28 273,232,093.50
Non-controlling interests effects (net of tax) 12,678,737.02 96,519,747.80
Total 132,065,057.50 927,639,614.92 --
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item Amount (RMB) Reason
Government grants continuously given in the Company’s ordinary
Tax rebates on software 9,928,764.26 course of business at fixed quotas or amounts as per the government’s
policies and standards
(III) Changes in Key Financial Statement Line Items and Explanation
√ Applicable □ Not applicable
Unit: RMB
Percentage
Item Q1-Q3 2021 Q1-Q3 2020 Main reason for change
of change
Taxes and levies 65,291,404.77 48,302,193.04 35.17% Increase in stamp tax and land use tax
Other income 760,063,480.80 468,038,917.63 62.39% Increase in government grants
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Konka Group Co., Ltd. Third Quarterly Report 2021
The disposal of the 51% interest in Dongguan Konka
Return on investment 467,513,252.27 1,932,345,020.63 -75.81% Investment Co., Ltd. in the same period of last year is
not recurrent
Changes in the fair value of financial assets at fair value
Gain on changes in
80,454,582.18 0 through profit or loss were recognized in the current
fair value
period
Credit impairment Decrease in allowances for expected credit impairment
-83,508,804.27 -419,369,553.83 80.09%
loss losses on receivables
Asset impairment
-37,285,530.58 -98,202,971.26 62.03% Decrease in inventory valuation allowances
loss
Asset disposal The disposal of certain patents in the same period of last
613,907.69 188,079,246.33 -99.67%
income year is not recurrent
Non-operating Increase of various profits not directly related to the
65,341,959.01 22,568,475.79 189.53%
income daily business activities of the enterprise
Non-operating
8,552,951.51 14,122,911.48 -39.44% Decrease of various non operating expenses
expense
The current period saw a decline in the gross profit
margin of principal operations as a result of sharp
Net profit attributable fluctuations of raw material prices, fiercer market
to owners of the competition, weak domestic consumption, impact of the
-126,378,339.68 615,363,686.82 -120.54%
Company as the continued overseas pandemic on exports, etc.
parent Additionally, the disposal of the 51% interest in
Dongguan Konka Investment Co., Ltd. in the same
period of last year is not recurrent.
Cash payments for the acquisition of fixed assets,
Net cash generated intangible assets and other long-lived assets increased in
from/used in -2,053,591,456.11 1,009,532,040.97 -303.42% the current period; and the income from the disposal of
investing activities the 51% interest in Dongguan Konka Investment Co.,
Ltd. in the same period of last year is not recurrent
Net cash generated
from/used in 5,212,196,615.36 646,414,699.45 706.32% Increase in borrowings obtained
financing activities
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resume d Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of preference shareholders with resumed
Number of ordinary shareholders 94,300 0
voting rights (if any)
Top 10 shareholders
Shareh Shares in pledge or
Nature of olding Total shares Restricted frozen
Name of shareholder
shareholder percent held shares held Shar
age Status
es
OVERSEAS CHINESE TOWN State-owned
21.75% 523,746,932 0
HOLDINGS COMPANY legal person
CITIC SECURITIES BROKERAGE Foreign legal
7.48% 180,001,110 0
(HONG KONG) CO., LTD. person
Domestic
WANG JINGFENG 4.61% 111,000,000 0
natural person
GUOYUAN SECURITIES BROKER Foreign legal
2.47% 59,500,325 0
(HK) CO., LTD. person
Foreign legal
HOLY TIME GROUP LIMITED 2.38% 57,289,100 0
person
Foreign legal
GAOLING FUND,L.P. 2.19% 52,801,250 0
person
LI HANFA Domestic 1.97% 47,546,687 0
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Konka Group Co., Ltd. Third Quarterly Report 2021
natural person
Foreign natural
NAM NGAI 0.94% 22,567,540 0
person
CHINA MERCHANTS SECURITIES State-owned
0.80% 19,314,220 0
(HK) LIMITED legal person
BOCOM INTERNATIONAL Foreign legal
0.76% 18,206,137 0
SECURITIES LIMITED person
Top 10 unrestricted shareholders
Shares by class
Name of shareholder Unrestricted ordinary shares held
Class Shares
OVERSEAS CHINESE TOWN RMB-denominated
523,746,932 523,746,932
HOLDINGS COMPANY ordinary share
CITIC SECURITIES BROKERAGE Domestically listed
180,001,110 180,001,110
(HONG KONG) CO., LTD. foreign share
RMB-denominated
WANG JINGFENG 111,000,000 111,000,000
ordinary share
GUOYUAN SECURITIES BROKER Domestically listed
59,500,325 59,500,325
(HK) CO., LTD. foreign share
Domestically listed
HOLY TIME GROUP LIMITED 57,289,100 57,289,100
foreign share
Domestically listed
GAOLING FUND,L.P. 52,801,250 52,801,250
foreign share
RMB-denominated
LI HANFA 47,546,687 47,546,687
ordinary share
Domestically listed
NAM NGAI 22,567,540 22,567,540
foreign share
CHINA MERCHANTS SECURITIES Domestically listed
19,314,220 19,314,220
(HK) LIMITED foreign share
BOCOM INTERNATIONAL Domestically listed
18,206,137 18,206,137
SECURITIES LIMITED foreign share
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for
short), holds 180,001,110 and 18,360,000 ordinary shares in the Company
Related or acting-in-concert parties among respectively through CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China
shareholders above Merchants Securities (HK) Limited. Happy Bloom Investment Limited and Overseas
Chinese Town Holdings Company 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
Top 10 ordinary shareholders involved in account for customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
securities margin trading Li Hanfa holds 47,546,687 A-shares in the Company through his securities account
for customer credit trading guarantee in Western Securities Co., Ltd.
(II) Numbe r of Preference Shareholders and Shareholdings of Top 10 of The m
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
(I) Issuance of corporate bonds: So far, the plan for a public offering of RMB2.7 billion corporate
bonds has been approved at a general meeting of the Company. And the said program is proceeding as
scheduled.
(II) Asset purchases via share offering and cash payment and matching fund raising: The Company
intended to acquire the 100% equity interests in Ganzhou MingGao Technology Co., Ltd. (MingGao
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Konka Group Co., Ltd. Third Quarterly Report 2021
Technology) from the 11 shareholders of MingGao Technology (including Shenzhen MingGao
Investment Holding Co., Ltd.) via share offering, and acquire the 100% equity interests in Jiangsu
Highstar Battery Manufacturing Co., Ltd. (Highstar Battery) from the 33 shareholders of Highstar
Battery (including Jiangsu Highstar Group Co., Ltd.) via share offering and cash payment. To raise
the matching funds, the Company planned to carry out a share offering to its controlling shareholder
Overseas Chinese Town Holdings Company. On 11 September 2021, the Company disclosed the
preliminary plan of the said transaction. Currently, the Company and the other parties concerned are
actively proceeding with the transaction, and the relevant audit, assessment, etc. are still in the
process.
IV Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
30 September 2021
Unit: RMB
Item 30 September 2021 31 December 2020
Current assets:
Monetary assets 6,517,483,201.63 5,431,530,180.90
Settlement reserve
Loans to other banks and financial institutions
Held-for-trading financial assets 618,249,541.66
Derivative financial assets
Notes receivable 1,805,167,372.43 2,358,180,193.96
Accounts receivable 4,590,310,234.93 3,900,897,623.59
Receivables financing 22,519,281.92 84,057,197.44
Prepayments 1,329,877,710.17 1,183,270,543.41
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 2,003,507,116.79 2,145,736,640.60
Including: Interest receivable 64,629,158.09 45,109,425.85
Dividends receivable 547,848.62 4,947,848.62
Financial assets purchased under resale agreements
Inventories 4,971,885,304.17 4,521,300,677.41
Contract assets 3,353,598,614.87 2,870,006,710.39
Assets held for sale
Current portion of non-current assets 15,966,544.22 112,310,158.82
Other current assets 2,192,366,633.07 1,913,146,483.39
Total current assets 26,802,682,014.20 25,138,685,951.57
Non-current assets:
Loans and advances to customers
Debt investments
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Konka Group Co., Ltd. Third Quarterly Report 2021
Other debt investments
Long-term receivables 388,763,891.86 399,497,204.03
Long-term equity investments 4,517,861,815.37 4,375,833,584.65
Investments in other equity instruments 25,343,293.16 25,343,293.16
Other non-current financial assets 2,123,842,467.93 1,878,154,796.76
Investment property 514,016,612.30 538,585,668.29
Fixed assets 3,778,113,899.37 3,178,642,017.84
Construction in progress 9,679,677,544.14 9,236,643,931.68
Productive living assets
Oil and gas assets
Right-of-use assets 80,331,299.82
Intangible assets 1,682,310,457.35 1,189,191,001.51
Development costs 4,197,749.71
Goodwill 675,795,873.17 675,795,873.17
Long-term prepaid expense 208,785,338.59 153,198,562.82
Deferred income tax assets 1,438,977,337.24 1,265,916,437.39
Other non-current assets 1,079,701,850.01 1,820,779,170.74
Total non-current assets 26,197,719,430.02 24,737,581,542.04
Total assets 53,000,401,444.22 49,876,267,493.61
Current liabilities:
Short-term borrowings 10,175,223,585.74 10,990,550,475.78
Borrowings from the central bank
Loans from other banks and financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,131,332,605.48 1,335,987,026.21
Accounts payable 9,900,406,852.26 9,632,366,325.76
Advances from customers
Contract liabilities 915,365,318.79 1,217,367,735.94
Financial assets sold under repurchase agreements
Customer deposits and deposits from other banks and
financial institutions
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 181,632,538.41 476,616,244.45
Taxes and levies payable 288,511,309.50 508,214,059.16
Other payables 1,693,347,629.84 1,999,430,899.69
Including: Interest payable 217,393,304.06 220,837,380.17
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 4,939,693,616.89 376,896,566.29
Other current liabilities 270,159,345.13 441,774,317.23
Total current liabilities 29,495,672,802.04 26,979,203,650.51
Non-current liabilities:
Insurance contract reserve
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Konka Group Co., Ltd. Third Quarterly Report 2021
Long-term borrowings 9,782,332,433.81 5,964,748,997.54
Bonds payable 2,292,323,113.26 4,993,212,788.32
Including: Preference shares
Perpetual bonds
Lease liabilities 51,408,096.50
Long-term payables 441,742,380.11 481,409,849.96
Long-term employee benefits payable 5,145,947.70 5,248,309.14
Provisions 100,954,889.87 102,353,567.91
Deferred income 233,957,947.45 446,900,524.64
Deferred income tax liabilities 89,667,473.05 75,819,231.93
Other non-current liabilities 113,038,148.97 106,475,449.02
Total non-current liabilities 13,110,570,430.72 12,176,168,718.46
Total liabilities 42,606,243,232.76 39,155,372,368.97
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 234,215,703.91 230,185,310.09
Less: Treasury stock
Other comprehensive income -16,338,571.91 -16,583,042.42
Specific reserve
Surplus reserves 1,211,721,109.67 1,211,721,109.67
General reserve
Retained earnings 4,228,198,511.15 4,595,371,391.63
Total equity attributable to owners of the Company as the 8,065,742,160.82 8,428,640,176.97
parent
Non-controlling interests 2,328,416,050.64 2,292,254,947.67
Total owners’ equity 10,394,158,211.46 10,720,895,124.64
Total liabilities and owners’ equity 53,000,401,444.22 49,876,267,493.61
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2021 Q1~Q3 2020
1. Revenues 31,626,746,378.63 29,801,145,271.16
Including: Operating revenue 31,626,746,378.63 29,801,145,271.16
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 32,958,502,701.12 31,294,628,818.95
Including: Cost of sales 30,206,985,064.55 27,874,517,742.42
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract
reserve
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Konka Group Co., Ltd. Third Quarterly Report 2021
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 65,291,404.77 48,302,193.04
Selling expense 1,024,179,934.62 1,412,344,800.39
Administrative expense 553,122,321.69 731,101,590.75
R&D expense 433,072,311.03 486,664,300.94
Finance costs 675,851,664.46 741,698,191.41
Including: Interest expense 743,648,860.62 742,208,965.50
Interest income 123,952,533.58 132,894,768.38
Add: Other income 760,063,480.80 468,038,917.63
Return on investment (“-” for loss) 467,513,252.27 1,932,345,020.63
Including: Share of profit or loss of joint ventures 75,468,924.12 45,185,728.73
and 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) 80,454,582.18
Credit impairment loss (“-” for loss) -83,508,804.27 -419,369,553.83
Asset impairment loss (“-” for loss) -37,285,530.58 -98,202,971.26
Asset disposal income (“-” for loss) 613,907.69 188,079,246.33
3. Operating profit (“-” for loss) -143,905,434.40 577,407,111.71
Add: Non-operating income 65,341,959.01 22,568,475.79
Less: Non-operating expense 8,552,951.51 14,122,911.48
4. Gross profit (“-” for loss) -87,116,426.90 585,852,676.02
Less: Income tax expense 41,529,133.86 44,203,698.68
5. Net profit (“-” for net loss) -128,645,560.76 541,648,977.34
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net -128,645,560.76 541,648,977.34
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 -126,378,339.68 615,363,686.82
as the parent
5.2.1 Net profit attributable to non-controlling interests -2,267,221.08 -73,714,709.48
6. Other comprehensive income, net of tax -891,213.66 -46,863,350.96
Attributable to owners of the Company as the parent 244,470.51 -44,798,700.49
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
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 244,470.51 -44,798,700.49
6.2.1 Other comprehensive income that will be 1,486,086.18
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of other debt
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Konka Group Co., Ltd. Third Quarterly Report 2021
investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt
investments
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of -1,241,615.67 -44,798,700.49
foreign currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -1,135,684.17 -2,064,650.47
7. Total comprehensive income -129,536,774.42 494,785,626.38
Attributable to owners of the Company as the parent -126,133,869.17 570,564,986.33
Attributable to non-controlling interests -3,402,905.25 -75,779,359.95
8. Earnings per share
8.1 Basic earnings per share -0.0525 0.2556
8.2 Diluted earnings per share -0.0525 0.2556
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2021 Q1~Q3 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 30,451,464,764.24 29,184,784,329.28
Net increase in customer deposits and deposits from other banks
and financial institutions
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, fees and commissions received
Net increase in loans from other banks and financial institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 333,893,980.47 158,747,704.56
Cash generated from other operating activities 1,172,860,994.12 2,779,748,792.23
Subtotal of cash generated from operating activities 31,958,219,738.83 32,123,280,826.07
Payments for commodities and services 29,601,035,244.82 28,608,102,086.75
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other banks and
financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 1,511,165,362.18 1,359,110,793.58
Taxes and levies paid 710,317,427.85 785,311,074.53
Cash used in other operating activities 1,577,936,087.07 2,546,630,231.54
Subtotal of cash used in operating activities 33,400,454,121.92 33,299,154,186.40
Net cash generated from/used in operating activities -1,442,234,383.09 -1,175,873,360.33
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Konka Group Co., Ltd. Third Quarterly Report 2021
2. Cash flows from investing activities:
Proceeds from disinvestment 343,726,934.95 695,562,072.60
Return on investment 92,533,320.06 97,902,372.90
Net proceeds from the disposal of fixed assets, intangible assets and 234,447,891.30 305,251,144.96
other long-lived assets
Net proceeds from the disposal of subsidiaries and other business 133,143,680.12 588,620,437.06
units
Cash generated from other investing activities 1,096,314,874.18 2,057,357,513.79
Subtotal of cash generated from investing activities 1,900,166,700.61 3,744,693,541.31
Payments for the acquisition of fixed assets, intangible assets and 3,121,184,726.92 2,417,483,605.63
other long-lived assets
Payments for investments 397,009,568.49 162,157,119.25
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other business 96,500,200.00
units
Cash used in other investing activities 339,063,661.31 155,520,775.46
Subtotal of cash used in investing activities 3,953,758,156.72 2,735,161,500.34
Net cash generated from/used in investing activities -2,053,591,456.11 1,009,532,040.97
3. Cash flows from financing activities:
Capital contributions received 101,867,396.60 133,039,439.25
Including: Capital contributions by non-controlling interests to 101,867,396.60 133,039,439.25
subsidiaries
Borrowings received 17,581,759,690.86 14,453,038,928.17
Cash generated from other financing activities 806,757,381.62 1,396,812,658.86
Subtotal of cash generated from financing activities 18,490,384,469.08 15,982,891,026.28
Repayment of borrowings 11,785,342,761.93 13,243,185,186.02
Interest and dividends paid 812,169,473.64 745,791,874.18
Including: Dividends paid by subsidiaries to non-controlling 7,497,000.00 4,513,500.00
interests
Cash used in other financing activities 680,675,618.15 1,347,499,266.63
Subtotal of cash used in financing activities 13,278,187,853.72 15,336,476,326.83
Net cash generated from/used in financing activities 5,212,196,615.36 646,414,699.45
4. Effect of foreign exchange rates changes on cash and cash -5,440,009.98 -22,135,152.50
equivalents
5. Net increase in cash and cash equivalents 1,710,930,766.18 457,938,227.59
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 6,008,986,879.42 4,951,640,144.81
(II) Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2021)
of the New Accounting Standards Governing Leases
√ Applicable □ Not applicable
Whether items of the balance sheet at the beginning of the year need adjustments
√ Yes □ No
Consolidated balance sheet
Unit: RMB
Item 31 December 2020 1 January 2021 Adjustment
Current assets:
Monetary assets 5,431,530,180.90 5,431,530,180.90
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Konka Group Co., Ltd. Third Quarterly Report 2021
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 618,249,541.66 618,249,541.66
Derivative financial assets
Notes receivable 2,358,180,193.96 2,358,180,193.96
Accounts receivable 3,900,897,623.59 3,900,897,623.59
Receivables financing 84,057,197.44 84,057,197.44
Prepayments 1,183,270,543.41 1,182,471,715.24 -798,828.17
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 2,145,736,640.60 2,145,209,803.70 -526,836.90
Including: Interest receivable 45,109,425.85 45,109,425.85
Dividends receivable 4,947,848.62 4,947,848.62
Financial assets purchased under resale
agreements
Inventories 4,521,300,677.41 4,521,300,677.41
Contract assets 2,870,006,710.39 2,870,006,710.39
Assets held for sale
Current portion of non-current assets 112,310,158.82 112,310,158.82
Other current assets 1,913,146,483.39 1,913,146,483.39
Total current assets 25,138,685,951.57 25,137,360,286.50 -1,325,665.07
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 399,497,204.03 399,497,204.03
Long-term equity investments 4,375,833,584.65 4,375,833,584.65
Investments in other equity instruments 25,343,293.16 25,343,293.16
Other non-current financial assets 1,878,154,796.76 1,878,154,796.76
Investment property 538,585,668.29 538,585,668.29
Fixed assets 3,178,642,017.84 3,178,642,017.84
Construction in progress 9,236,643,931.68 9,236,643,931.68
Productive living assets
Oil and gas assets
Right-of-use assets 103,838,847.54 103,838,847.54
Intangible assets 1,189,191,001.51 1,189,191,001.51
Development costs
Goodwill 675,795,873.17 675,795,873.17
Long-term prepaid expense 153,198,562.82 153,198,562.82
Deferred income tax assets 1,265,916,437.39 1,265,916,437.39
Other non-current assets 1,820,779,170.74 1,820,779,170.74
Total non-current assets 24,737,581,542.04 24,841,420,389.58 103,838,847.54
Total assets 49,876,267,493.61 49,978,780,676.08 102,513,182.47
Current liabilities:
Short-term borrowings 10,990,550,475.78 10,990,550,475.78
Borrowings from the central bank
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Konka Group Co., Ltd. Third Quarterly Report 2021
Loans from other banks and financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,335,987,026.21 1,335,987,026.21
Accounts payable 9,632,366,325.76 9,632,366,325.76
Advances from customers
Contract liabilities 1,217,367,735.94 1,217,367,735.94
Financial assets sold under repurchase
agreements
Customer deposits and deposits from other
banks and financial institutions
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 476,616,244.45 476,616,244.45
Taxes and levies payable 508,214,059.16 508,214,059.16
Other payables 1,999,430,899.69 1,991,555,887.10 -7,875,012.59
Including: Interest payable 220,837,380.17 220,837,380.17
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with assets
held for sale
Current portion of non-current liabilities 376,896,566.29 425,552,664.43 48,656,098.14
Other current liabilities 441,774,317.23 441,774,317.23
Total current liabilities 26,979,203,650.51 27,019,984,736.06 40,781,085.55
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 5,964,748,997.54 5,964,748,997.54
Bonds payable 4,993,212,788.32 4,993,212,788.32
Including: Preference shares
Perpetual bonds
Lease liabilities 61,732,096.92 61,732,096.92
Long-term payables 481,409,849.96 481,409,849.96
Long-term employee benefits payable 5,248,309.14 5,248,309.14
Provisions 102,353,567.91 102,353,567.91
Deferred income 446,900,524.64 446,900,524.64
Deferred income tax liabilities 75,819,231.93 75,819,231.93
Other non-current liabilities 106,475,449.02 106,475,449.02
Total non-current liabilities 12,176,168,718.46 12,237,900,815.38 61,732,096.92
Total liabilities 39,155,372,368.97 39,257,885,551.44 102,513,182.47
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 230,185,310.09 230,185,310.09
Less: Treasury stock
Other comprehensive income -16,583,042.42 -16,583,042.42
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Konka Group Co., Ltd. Third Quarterly Report 2021
Specific reserve
Surplus reserves 1,211,721,109.67 1,211,721,109.67
General reserve
Retained earnings 4,595,371,391.63 4,595,371,391.63
Total equity attributable to owners of the 8,428,640,176.97 8,428,640,176.97
Company as the parent
Non-controlling interests 2,292,254,947.67 2,292,254,947.67
Total owners’ equity 10,720,895,124.64 10,720,895,124.64
Total liabilities and owners’ equity 49,876,267,493.61 49,978,780,676.08 102,513,182.47
Notes for adjustment
The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.
21-Leases"(Cai Kuai [2018]No.35) in 2018, and the Company implemented it since 1 January 2021.
According to the new standards governing leases, enterprises implementing this standard for the first
time should adjust the amount of retained earnings and other related items in the financial statements
at the beginning of the year when the standard is first implemented based on the cumulative impact o f
the first implementation of the standard, and no adjustment is made to the information for the
comparable period.
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First
Execution in 2021 of the New Accounting Standards Governing Leases
√ Applicable □ Not applicable
The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.
21-Leases"(Cai Kuai [2018]No.35) in 2018, and the Company implemented it since 1 January 2021.
According to the new standards governing leases, enterprises implementing this standard for the first
time should adjust the amount of retained earnings and other related items in the financial statements
at the beginning of the year when the standard is first implemented based on the cumulative impact of
the first implementation of the standard, and no adjustment is made to the information for the
comparable period.
(III) Inde pendent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent
auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
Konka Group Co., Ltd
27 October 2021
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