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深康佳B:2022年半年度报告(英文版)2022-08-25  

                        Konka Group Co., Ltd.                           Interim Report 2022




                        KONKA GROUP CO., LTD.

                        INTERIM REPORT 2022

                                2022-76




                             August 2022




                                   1
Konka Group Co., Ltd.                                                            Interim Report 2022




             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 the Company’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 2022




                                                    Table of Contents




Part I Important Notes, Table of Contents and Definitions........................................................... 2

Part II Corporate Information and Key Financial Information................................................... 8

Part III Management Discussion and Analysis..............................................................................11

Part IV Corporate Governance.......................................................................................................24

Part V Environmental and Social Responsibility.......................................................................... 25

Part VI Significant Events............................................................................................................... 35

Part VII Share Changes and Shareholder Information................................................................48

Part VIII Preferred Shares.............................................................................................................. 51

Part IX Bonds................................................................................................................................... 52

Part X Financial Statements............................................................................................................54




                                                                        3
Konka Group Co., Ltd.                                                              Interim Report 2022




                         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.




                                                  4
Konka Group Co., Ltd.                                                                                          Interim Report 2022




                                                       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
Electronics Technology                               Shenzhen Konka Electronics Technology Co., Ltd.
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                                   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 Flexible Electronic                            Suining Konka Flexible 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.
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.
Yibin Konka Technology Park                          Yibin Konka Technology Park Operation Co., Ltd.
Konka Capital                                        Shenzhen Konka Capital Equity Investment Management Co., Ltd.
Konka Suiyong                                        Konka Suiyong Investment (Shenzhen) 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.


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Konka Group Co., Ltd.                                                                                    Interim Report 2022


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.
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.
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 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             Jiangxi High Transparent Substrate Material Technology 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.
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.
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.
Yantai Laikang                                 Yantai Laikang Industrial Development Co., Ltd.


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Konka Group Co., Ltd.                                                                            Interim Report 2022


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.
Konka Eco-Development                   Shenzhen Konka Eco-Development Investment Co., Ltd.
Konka Europe                            Konka (Europe) Co., Ltd.
Hong Kong Konka                         Hong Kong Konka Limited
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)
Hongjet                                 Hongjet (Hong Kong) Company Limited
Xi'an Feihe                             Xi'an Feihe Real Estate Development Co., Ltd.
Chongqing Xinyuan Semiconductor         Chongqing Xinyuan Semiconductor Co., Ltd.
Jiangxi Konka Industrial Park           Jiangxi Konka Industrial Park Development Co. Ltd.
Ruichang Kangrui Real Estate            Ruichang Kangrui Real Estate Co., Ltd.
Industrial development in Wuhan         Konka Industrial Development (Wuhan) Co., Ltd.
Kangxiaojia Digital                     Shenzhen Kangxiaojia Digital Information Technology Co., Ltd.
Yijiakang Smart Terminal                Shenzhen Yijiakang Smart Terminal Technology Co., Ltd.
Guizhou Kangkai Material Technology     Guizhou Kangkai Material Technology Co., Ltd.
Guizhou Konka New Material Technology   Guizhou Konka New Material Technology Co., Ltd.
Guizhou Kanggui Energy                  Guizhou Kanggui Energy Co., Ltd.
Guangdong Xinwei                        Guangdong Xinwei Semiconductor Co., Ltd.
Kangxinrun Renewable Resources          Chongqing Kangxingrui Renewable Resources Co., Ltd.
Guizhou Kanggui Material Technology     Guizhou Kanggui Material Technology Co., Ltd.
Sichun Chengrui                         Sichuan Chengrui Real Estate Co., Ltd.
Chongqing Jiarun                        Chongqing Jiarun Real Estate Co., Ltd.
Nantong Kanghai                         Nantong Kanghai Technology Industry Development Co., Ltd.
Chongqing Kangyiyun                     Chongqing Kangyiyun Business Operation Management Co., Ltd.
Kanghong Dongsheng                      Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Jiangxi Konka High-tech Park            Jiangxi Konka High-tech Park Operation and Management Co., Ltd.
Shangrao Konka Electronic Technology
                                        Shangrao Konka Electronic Technology Innovation Co., Ltd.
Innovation
Guizhou Konka New Energy                Guizhou Konka New Energy Material Technology Co., Ltd.
Zhejiang Konka Electronic               Zhejiang Konka Electronic Technology Co., Ltd.
Zhejiang Konka Technology Industry      Zhejiang Konka Technology Industry 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 RMB, expressed in tens of thousands of
RMB, RMB’0,000, RMB’00,000,000
                                        RMB, expressed in hundreds of millions of RMB




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Konka Group Co., Ltd.                                                                                     Interim Report 2022




          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 any)     KONKA GROUP CO.,LTD
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, Guangdong   Yuehai Street, Nanshan District, Shenzhen, Guangdong
            Province, China                                        Province, China
Tel.        0755-26609138                                          0755-26609138
Fax         0755-26601139                                          0755-26601139
Email
            szkonka@konka.com                                      szkonka@konka.com
address


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 2021
Annual Report.

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 2021 Annual Report.



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Konka Group Co., Ltd.                                                                                             Interim Report 2022


3. Other Information

Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable √ Not applicable

IV Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
                                                                              H1 2022                 H1 2021           Change (%)
 Operating revenue (RMB)                                                   16,895,470,276.81      21,810,161,873.08        -22.53%
 Net profit attributable to the listed company’s shareholders
                                                                              172,818,438.83            85,449,919.57        102.25%
 (RMB)
 Net profit attributable to the listed company’s shareholders before
                                                                             -742,356,181.71        -710,124,637.85           -4.54%
 exceptional gains and losses (RMB)
 Net cash generated from/used in operating activities (RMB)                  -421,259,506.73      -1,284,761,222.03        67.21%
 Basic earnings per share (RMB/share)                                                 0.0718                 0.0355       102.25%
 Diluted earnings per share (RMB/share)                                               0.0718                 0.0355       102.25%
 Weighted average return on equity (%)                                                1.87%                  1.01%           0.86%
                                                                            30 June 2022         31 December 2021       Change (%)
 Total assets (RMB)                                                        39,312,730,372.55      39,874,520,771.26         -1.41%
 Equity attributable to the listed company’s shareholders (RMB)            9,283,431,087.04       9,095,278,436.41          2.07%


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
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)               657,751,392.73
Government subsidies through profit or loss (exclusive of government subsidies consistently given
in the Company’s ordinary course of business at fixed quotas or amounts as per governmental                335,987,367.04
policies or standards)
Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & income from
                                                                                                             32,966,971.77
disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets


                                                                   9
Konka Group Co., Ltd.                                                                                          Interim Report 2022


(exclusive of the effective portion of hedges that arise in the Company’s ordinary course of
business)
Gain or loss on loan entrustments                                                                        54,416,927.25
Non-operating income and expense other than the above                                                    26,896,814.20
Less: Income tax effects                                                                                135,264,660.61
      Non-controlling interests effects (net of tax)                                                     57,580,191.84
Total                                                                                                   915,174,620.54

Particulars about other gains and losses 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
                  Amount involved
   Item                                                                            Reason
                     (RMB)
Tax rebates                              Government subsidies given in the Company’s ordinary course of business at fixed
                         7,949,955.87
on software                              quotas or amounts as per government’s uniform standards




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Konka Group Co., Ltd.                                                                 Interim Report 2022




                        Part III Management Discussion and Analysis

I Principal Activity of the Company in the Reporting Period

At present, the core businesses of the Company include consumer electronics, industry trade,
semiconductors, environmental protection, etc. Among them, for the industry trade business, the
Company carries out the procurement, processing and distribution of related materials around the
upstream and downstream of the consumer electronics business, thus it can be categorized to the
consumer electronics industry or semiconductor business. Therefore, the industries in which the
Company operates during the Reporting Period are consumer electronics industry, semiconductor
industry and environmental protection industry. The relevant information is as follows:
(I) The consumer electronics business
This division primarily comprises the multimedia sub-division and the white goods sub-division,
with details as follows:
1. The multimedia business
The Company's multimedia business faces the global market, mainly including domestic color TV
business and export color TV business.
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.
In the first half of 2022, affected by factors such as increasingly fierce market competition,
fluctuating raw material price, and sluggish scale growth under the impact of the COVID-19
pandemic, the gross profit level of the color TV industry continued to be diluted. According to
statistics from All View Cloud (AVC for short), the omni-channel retail sales volume in China's
color TV market was 16.72 million units in the first half of 2022, declining by 6.2% year-on-year,
and the retail sales value was RMB53.1 billion, decreasing by 10.5% year-on-year. With the
intelligent upgrade of electronic products and iterative update of display technologies, the color TV
industry is expected to enter the stage of upgrade guided by science and technology, and the market
scale of the industry is expected to grow.
2. The white goods business
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.

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Konka Group Co., Ltd.                                                                 Interim Report 2022



And the Company profits from the margins between the costs and the selling prices of its white
goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. Meanwhile, the establishment of the Ningbo A/C production base as a joint
venture has helped the Company build its own A/C manufacturing capability. The weakness in the
front-loading washing machine technology has been overcome by the acquisition of Beko (Front-
loading Washing Machine) China Factory. In addition, the Company went on a new path of
exploring the dishwasher world by setting up Xi’an Smart Appliances Park. The Company also
optimized the internal R&D, production, procurement, sales, and services processes, integrated the
external channel resources to enable channel sharing between the upstream procurement processes
and downstream sales processes, and improved the product sales structure and competitiveness of
the white goods business.
In terms of the air-conditioning industry, statistics from AVC show that the omni-channel retail sales
volume of China's air-conditioning market was 21.54 million units in the first half of 2022,
decreasing by 20.9% year-on-year, and the retail sales value was RMB72.7 billion, decreasing by
15.3% year-on-year. With the industrial upgrade driven by relevant policies and the recovery of
consumer demand for trade-in, the air-conditioning industry is expected to maintain a steady growth
trend in the future. In terms of the refrigerator industry, statistics from AVC show that the omni-
channel retail sales volume of China's refrigerator market was 15.07 million units in the first half of
2022, decreasing by 5.5% year-on-year, and the retail sales value was RMB45.6 billion, decreasing
by 3.4% year-on-year. As people become increasingly concerned about health and food preservation,
and the upgrade trend of life quality is continuously advanced, steady development and product
upgrade will become the main characteristics of the refrigerator market in the future, and health
function, aesthetic appearance and differentiated door body will become the new premium direction
of refrigerator products. In terms of the refrigerator industry, statistics from AVC show that the
omni-channel retail sales volume of China's refrigerator market was 15,279,000 units in the first
half of 2022, decreasing by 9.2% year-on-year, and the retail sales value was RMB30.9 billion,
decreasing by 10.1% year-on-year. The downturn in the offline market affected the overall market
performance of the washing machine industry. However, with the rise of new media channels and
the improvement of enterprise cost pressure, the high-end trend of the washing machine market
remained unchanged, and the market is expected to maintain a stable development trend in the
future.
(II) The industry trade business
The Company's industry trade business mainly focuses on the procurement, processing and
distribution of IC chip storage, LCD and other materials involved in the company's traditional main
business. The operating profit comes from the processing fee and the price difference between
upstream procurement and downstream sales. The industry trade business can help the Company


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Konka Group Co., Ltd.                                                                   Interim Report 2022



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 semiconductor business
Currently, the Company is engaged in storage, optoelectronics, etc. with respect to the semi-
conductor business. In storage, the Company primarily engages in packaging and testing of storage
products. In optoelectronics, the Company primarily develops Micro LED-related products.
Micro LED is the prevailing trend and development direction of future display technology. The
industrial chain is divided into four main links: upstream chip manufacturing and mass transfer,
midstream panel manufacturing, and downstream complete machine application. The Micro LED
has wide industrial application and a broad market.
(IV) The environmental protection business
Currently, this business focuses on recycling of renewable resources. Renewable resources are
collected, sorted, processed, distributed and sold.
With the introduction of a series of favorable policies to encourage the recycling and utilization of
renewable resources and the continuous enhancement of environmental protection supervision, the
total amount and the total value of recycled resources in China have shown rapid growth. It is
expected that the industry will continue to develop to a good prospect in the future, and the
development scale of the renewable resource recycling industry will continue to grow steadily.

II Core Competitiveness Analysis

The Company’s core competitiveness lies in its R&D ability, brand, marketing network and human
resources. It has developed an R&D system of “Konka Research Institute-secondary Group/division
research centers-technology application centers”, 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 technologies and about 1,500 R&D talents. The
Company has introduced around 100 experts on the project of micro LED. 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-

                                                      13
Konka Group Co., Ltd.                                                                Interim Report 2022



win results, and strives for development at home and abroad. Regarding offline channels, the
Company has 14 branches, more than 150 offices, more than 8,000 sales outlets across China, and
the marketing and service network is all over the country; as for online channels, the Company has
settled in Tmall, JD, 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. In terms of human resources, the
Company boasts a leadership team of many years of management and industry experience, as well
as a high quality execution team.

III Analysis of Main Businesses

(I) Overview
In the Reporting Period, the Company adhered to the development strategy of "Technology +
Business + Industrial Parks", and focused on the three core businesses of "New Consumer
Electronics + Semiconductor + New Energy Technology" and the two supporting businesses of
“Industrial Parks + Investment”, so as to promote the concentrated, steady and high-quality
development of the Company.
In order to continuously strengthen its competitiveness, the Company kept consolidating the three-
level R&D system of "research institute - key laboratory - product R&D center", and continuously
strengthened R&D investment through independent innovation, external cooperation and
technology introduction. In terms of the multimedia business, the Key Technology of Intelligent
Terminal Integrating Information Equipment and Synergetic Interconnection of Beacon declared by
the Company won the second prize of Guangdong Science and Technology Progress Award;
APHAEA A6 Pro, a newly launched intelligent scenario screen, supports free screen splice in
multiple proportions, and a variety of control methods, well satisfying the needs of users for cross-
ecological scenarios. In terms of the white goods business, the Control Methods for Temperature
Rectification of Air-cooled Refrigerator and the A Noise Control Method for Refrigerator Using
Frequency Conversion Compressor won the Science and Technology Achievement Award of Henan
Province; the newly developed air-cooled -86°C cryorefrigerator for civil use opened up the market
space of the Company's ultra-low temperature refrigeration products in such fields as medical
treatment, military industry, scientific research and transportation. In terms of the semiconductor
business, the Company is actively promoting industrialization. By now, the Company has built a
whole-process mass production line for Micro LED and the Micro LED chip has begun to enter the
stage of mass production, and Mini LED is ready for mass production. Additionally, Yancheng
Semiconductor Assembly & Test Base has achieved batch shipment.
In the Reporting Period, the white goods business of the Company achieved countertrend growth in

                                                 14
Konka Group Co., Ltd.                                                                                                        Interim Report 2022



income scale through "Konka + Frestec" dual-brand operation and "refrigerators + washing
machines + air conditioners + freezers + kitchen appliances" full-category layout. Affected by
factors such as declining market demand, fluctuating raw material price and fierce market
competition, the profitability of the Company's multimedia business decreased.
(II) Year-on-year changes in key financial data:
                                                                                                                                     Unit: RMB
                                           H1 2022                    H1 2021                Change (%)            Main reason for change
Operating revenue                      16,895,470,276.81          21,810,161,873.08             -22.53%
Cost of sales                          16,482,440,621.84          20,817,175,713.78             -20.82%
Selling expense                           560,225,684.28             667,662,036.47             -16.09%
Administrative expense                    354,308,684.51             359,053,667.07              -1.32%
Finance costs                             267,115,327.58             459,415,782.71             -41.86%        Increased exchange gains
Income tax expense                        -88,858,864.36              84,263,268.37            -205.45%
R&D investments                           241,660,483.14             284,663,467.26             -15.11%
                                                                                                               Econ Technology has been
                                                                                                               excluded from the
Net cash generated from/used in
                                         -421,259,506.73          -1,284,761,222.03                 67.21%     consolidated financial
operating activities
                                                                                                               statements in the current
                                                                                                               period
Net cash generated from/used in                                                                                Increased cash flows from
                                          114,321,239.48          -1,785,387,038.28                106.40%
investing activities                                                                                           disinvestment
                                                                                                               Issue of RMB1.5 billion of
                                                                                                               corporate bonds in the same
Net cash generated from/used in
                                          212,673,169.75           3,939,565,440.45                 -94.60%    period of last year, with no
financing activities
                                                                                                               such event in the current
                                                                                                               period
Net increase in cash and cash
                                              -64,827,416.56         861,929,112.82                -107.52%
equivalents
                                                                                                               Decreased continuing
Other income                              343,737,322.91             720,696,356.02                 -52.30%    government grants that were
                                                                                                               through profit or loss
                                                                                                               Increased income from equity
Return on investment                      737,803,536.05             322,244,312.89                128.96%
                                                                                                               transfer
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes.
(III) Breakdown of operating revenue:
                                                                                                                                     Unit: RMB
                                          H1 2022                                             H1 2021
                                                     As % of total                                       As % of total          Change (%)
                          Operating revenue                                   Operating revenue
                                                 operating revenue (%)                               operating revenue (%)
 Total                    16,895,470,276.81                      100%          21,810,161,873.08                     100%              -22.53%
 By operating division
 Consumer electronics      5,246,599,004.00                    31.06%           6,262,070,661.11                  28.71%               -16.22%
 Industry trade           10,171,407,159.62                    60.20%          12,184,495,984.54                  55.87%               -16.52%
 Environmental business      774,458,509.72                     4.58%           2,724,186,133.96                  12.49%               -71.57%
 Semiconductor                50,916,083.90                     0.30%             241,973,760.06                   1.11%               -78.96%
 Other                       652,089,519.57                     3.86%             397,435,333.41                   1.82%                64.07%
 By product category
 Color TVs                 2,389,828,778.20                    14.15%           3,190,601,881.06                  14.63%               -25.10%
 White goods               1,900,207,771.57                    11.25%           1,752,194,252.46                   8.03%                 8.45%
 Industry trade           10,171,407,159.62                    60.20%          12,184,495,984.54                  55.87%               -16.52%
 Environmental business      774,458,509.72                     4.58%           2,724,186,133.96                  12.49%               -71.57%
 Semiconductor                50,916,083.90                     0.30%             241,973,760.06                   1.11%               -78.96%
 PCB                         291,397,810.91                     1.72%             365,622,811.21                   1.68%               -20.30%
 Other                     1,317,254,162.89                     7.80%           1,351,087,049.79                   6.19%                -2.50%
 By operating segment
 Overseas                  7,238,742,630.40                    42.84%          11,317,853,852.95                  51.89%               -36.04%


                                                                         15
Konka Group Co., Ltd.                                                                                                            Interim Report 2022


 Domestic                    9,656,727,646.41                    57.16%           10,492,308,020.13                48.11%                     -7.96%

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 margin
                                                                                                             cost of sales (%)
                                                                          margin                (%)                                        (%)
 By operating division
 Consumer electronics     5,246,599,004.00       5,090,787,997.35              2.97%              -16.22%             -11.65%                 -5.01%
 Industry trade          10,171,407,159.62      10,120,679,704.92              0.50%              -16.52%             -16.21%                 -0.37%
 Environmental
                            774,458,509.72         749,206,296.93              3.26%              -71.57%             -69.29%                 -7.19%
 business
 By product category
 Color TVs                2,389,828,778.20       2,418,706,246.97              -1.21%             -25.10%             -19.84%                 -6.64%
 White goods              1,900,207,771.57       1,711,652,138.98               9.92%               8.45%               6.41%                  1.72%
 Environmental
                            774,458,509.72         749,206,296.93              3.26%              -71.57%             -69.29%                 -7.19%
 business
 Industry trade          10,171,407,159.62      10,120,679,704.92              0.50%              -16.52%             -16.21%                 -0.37%
 By operating segment
 Domestic                 9,656,727,646.41       9,310,722,854.10              3.58%               -7.96%              -3.65%                 -4.32%
 Overseas                 7,238,742,630.40       7,171,717,767.74              0.93%              -36.04%             -35.70%                 -0.53%

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 adjustments to the
structure of the environmental business.
The change in revenue of the semi-conductor business was primarily driven by a slowdown in
demand for consumer electronics due to the COVID-19 pandemic.
The change in overseas revenue was primarily driven by the decreased purchases by overseas
customers.

IV Analysis of Non-Core Businesses

√ Applicable □ Not applicable
                                                                                                                                           Unit: RMB
                                   Amount            As % of total profit                       Source/Reason                    Recurrent or not
                                                                                     Transfer of equity investments in
Return on investment             737,803,536.05                  -2,391.15%                                                      Not recurrent
                                                                                     certain subsidiaries in the period
Gain/loss on changes in
                                     -638,799.36                      2.07%                                                      Not recurrent
fair value
                                                                                     Impairment losses on receivables
Asset impairments                 -91,918,302.31                    297.90%                                                      Not recurrent
                                                                                     and inventories
                                                                                     Mainly for the company's daily
Non-operating income               30,492,741.65                    -98.82%          business activities are not directly        Not recurrent
                                                                                     related to the increase in profits
Non-operating expense               3,860,945.80                    -12.51%                                                      Not recurrent




                                                                          16
Konka Group Co., Ltd.                                                                                                        Interim Report 2022


V Analysis of Assets and Liabilities

1. Material Changes in Asset Composition

                                                                                                                                     Unit: RMB
                                         30 June 2022                                31 December 2021                                Reason
                                                                                                                      Change in
                                                                                                                                       for
                                                           As % of                                  As % of total     percentag
                                    Amount                                        Amount                                             material
                                                         total assets                                  assets           e (%)
                                                                                                                                     change
 Monetary assets                 6,534,638,395.86            16.62%          6,489,553,211.24            16.27%          0.35%
 Accounts receivable             3,372,628,831.51             8.58%          3,397,729,481.07             8.52%          0.06%
 Inventories                     4,018,041,845.92            10.22%          4,068,537,809.18            10.20%          0.02%
 Investment property               774,860,887.71             1.97%            776,525,061.54             1.95%          0.02%
 Long-term         equity
                                 6,273,716,368.75            15.96%          5,902,588,939.51            14.80%          1.16%
 investments
 Fixed assets                    3,960,662,993.10            10.07%          4,010,295,277.14            10.06%          0.01%
 Construction          in
                                 1,781,601,493.64              4.53%         1,490,777,831.39             3.74%          0.79%
 progress
 Right-of-use assets                 69,287,135.98             0.18%              71,210,415.37           0.18%          0.00%
 Short-term
                                10,090,194,886.59            25.67%          9,920,675,121.08            24.88%          0.79%
 borrowings
 Contract liabilities               711,366,769.35             1.81%          652,910,408.02              1.64%          0.17%
 Long-term
                                 8,245,446,057.26            20.97%          3,529,140,539.09             8.85%         12.12%
 borrowings
 Lease liabilities                   51,616,953.84             0.13%              42,532,869.63           0.11%          0.02%
2. Major Assets Overseas
□ Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
                                                                                                                                      Unit: RMB
                                                           Cumul
                                                                        Impair
                                                            ative                                                       Ot
                                         Gain/loss on                    ment
                                                            fair-                                                       he
                                          fair-value                    allowa     Purchased in
                                                            value                                     Sold in the        r
                        Beginning         changes in                      nce          the                                         Ending
         Item                                              change                                     Reporting         ch
                         amount               the                       for the     Reporting                                      amount
                                                              s                                         Period          an
                                          Reporting                     Repor         Period
                                                           charge                                                       ge
                                            Period                       ting
                                                             d to                                                        s
                                                                        Period
                                                           equity
 Financial assets
 4. Investments
 in other equity        23,841,337.16                                                                                             23,841,337.16
 instruments
 Subtotal of
                        23,841,337.16                                                                                             23,841,337.16
 financial assets
                                                     -
 Other                2,364,852,292.22
                                         26,700,574.54
                                                                                   248,874,549.86    117,004,025.26            2,470,022,242.28
 Total of       the                                  -
                      2,388,693,629.38                                             248,874,549.86    117,004,025.26            2,493,863,579.44
 above                                   26,700,574.54
 Financial
                                     0                                                                                                       0
 liabilities
Other changes
                                                                                                                                      Unit: RMB
                                      Gain/loss on                  Impairme
                                                                                                             Oth
                                       fair-value Cumulative fair-       nt    Purchased in
                       Beginning                                                              Sold in the      er
         Item                          changes in   value changes allowanc the Reporting                          Ending amount
                        amount                                                              Reporting Period chan
                                     the Reporting charged to equity e for the    Period
                                                                                                              ges
                                         Period                     Reporting

                                                                        17
Konka Group Co., Ltd.                                                                                                        Interim Report 2022


                                                                              Period
 Other non-current
                   2,293,361,603.68 -26,700,574.54                                       238,947,826.06      45,513,336.72          2,460,095,518.48
  financial assets
    Receivables
                      71,490,688.54                                                        9,926,723.80      71,490,688.54             9,926,723.80
     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
         Item                                                                          Reason for restriction
                            value (RMB)
                                            Of which, RMB571,737,827.06 was margin deposit pledged for borrowings or issuing
                                            bank acceptance bills; RMB10,764,266.54 was financial supervision account funds;
Monetary assets              631,118,593.39
                                            RMB19,800,000.00 was fixed-term deposit that cannot be withdrawn in advance;
                                            RMB28,816,499.79 was restricted for other reasons

Notes receivable             373,073,971.78 As pledge for notes issuing
Investment property          106,335,030.70 As collateral for loan
Fixed assets               1,198,081,326.15 As collateral for loan and finance lease
Construction in
                                 78,521,756.73 As collateral for finance lease
progress
Intangible assets            376,579,273.20 As collateral for loan and former shareholder guarantee
         Total             2,763,709,951.95

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)
                       2,650,070,931.19                                  2,768,943,435.03                                                 -4.29%
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
                                                                                         Est
                                                  Input     Accumulat                          Accumulat    for    not
                   Inves                                                                 im
                             Fixed      Indust   amount     ive actual    Capit   Pr               ive      meeting
                   tmen                                                                  ate                             Disclosure      Disclosur
                             assets       ry      in the       input        al    og             realized   the
      Item            t                                                                   d                               date (if       e index (if
                           investme     involv   Reporti    amount as     resou   re            revenues    schedule
                   meth                                                                  rev                                any)            any)
                           nt or not      ed        ng        of the       rces   ss            as of the   and
                     od                                                                  en
                                                 Period     period-end                         period-end   expected
                                                                                         ues
                                                                                                            revenues
 Dongguan                               Electr
                                                                         Self-
 Konka             Self-                onic                                                                             2017-03-
                           Yes                   95,666,    443,584,8    funde                              N/A
 Intelligent       build                indust                                                                           11
                                                 523.68         23.68    d
 Industrial Park                        ry
 Suining Konka                          Electr
                                                                         Self-
 Electronic        Self-                onic                                                                             2018-10-
                           Yes                   93,540,    426,602,8    funde                              N/A
 Technology        build                indust                                                                           17
                                                 707.10         00.00    d                                                              http://ww
 Industrial Park                        ry
                                                                                                                                        w.cninfo.c
 Chongqing
                                        Electr                                                                                          om.cn/ne
 Konka                                                                   Self-
                   Self-                onic     112,779                                                                 2019-06-       w/index
 Semiconductor             Yes                              397,728,6    funde                              N/A
                   build                indust   ,838.51                                                                 14
 Photoelectric                                                  16.87    d
                                        ry
 Industrial Park
 Konka
                                        Electr
 Intelligent                                                             Self-
                   Self-                onic     121,099                                                                 2020-06-
 Terminal                  Yes                              41,044,30    funde                              N/A
                   build                indust        .00                                                                06
 Manufacturing                                                   6.45    d
                                        ry
 Base for Export


                                                                         18
Konka Group Co., Ltd.                                                                                                               Interim Report 2022


                                          Electr
 Frestec                                                                       Self-
                      Self-               onic                                                                                   2020-07-
 Refrigeration                Yes                      35,375,    144,547,8    funde                             N/A
                      build               indust                                                                                 21
 Park                                                  318.93         00.00    d
                                          ry
 Xi’an Konka
                                          Electr
 Smart                                                                         Self-
                      Self-               onic                                                                                   2021-02-
 Appliances                   Yes                      10,266,    151,782,3    funde                             N/A
                      build               indust                                                                                 10
 Headquarters                                          565.00         39.75    d
                                          ry
 Project
                                                       347,750    1,605,290,
 Total                 --       --            --                                    --     --                          --            --         --
                                                        ,052.22       686.75

Note: Construction is ongoing for Regarding Dongguan Konka Intelligent Industrial Park,
Chongqing Konka Semiconductor Photoelectric Industrial Park, Suining Konka Electronic
Technology Industrial Park, Konka Intelligent Terminal Manufacturing Base for Export, Frestec
Refrigeration Park, and Xi’an Konka Smart Appliances Headquarters Project.
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.
5. Use of Raised Funds
√ Applicable □ Not applicable
(1) General Information about Use of Raised Funds
√ Applicable □ Not applicable
                                                                                                                            Unit: RMB’0,000
                                                                                                     Cumulat
                                                                                                                                 Purpose
                                                                           Re-                         ive re-                              Amount
                                                    Used                                                                           and
Year                                                                    purposed         Cumulat     purposed                                 being
                                 Total             in the   Cumula                                                               whereab
  of                                                                     amount            ive re-    amount     Unused                      idle for
          Way of raising        amount             Curre     tively                                                              outs of
raisin                                                                    in the         purposed     as % of    amount                       more
                                 raised              nt       used                                                                 the
  g                                                                     Reportin          amount        total                               than two
                                                   Period                                                                        unused
                                                                        g Period                      amount                                  years
                                                                                                                                 amount
                                                                                                       raised
         Public offering
2022     of corporate               120,000            0    120,000                 0           0      0.00%                 0                       0
         bonds
Total            --                 120,000            0    120,000                 0           0      0.00%                 0      --               0
                                                                   More information
The bonds offering was completed on 14 July 2022. As of the date of this Report’s being authorized for issue, the raised funds
have been used up. The Company used raised funds in strict compliance with the stated purposes in the prospectus, and the special
account for raised funds was running well.
(2) Promised Use of Raised Funds
□ Applicable √ Not applicable
(3) Re-purposed Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.


                                                                               19
Konka Group Co., Ltd.                                                                                                                             Interim Report 2022



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
                                                  Amoun
                                                       t                   Amoun
                                                  contrib                      t
                                                  uted by                  contrib
                                                     the                   uted by
                                                                                                         Relati
                                                   equity                  the sale
                                                                                                         onshi
                                                  interest                  to net
                                                                                                            p
                                                  s to net       Effect    income                                   Owner        Executed as                     Index
                                                                                                Relate   betwe
                                      Selling     income         of the     of the     Prici                          ship       scheduled or                      to
              Equity                                                                           d-party     en                                       Disclos
Counte                      Date of    price       of the       sale on    Compa        ng                           fully         not, if not,                 disclos
              interest                                                                         transac   count                                       ure
rparty                       sale     (RMB’      Compa           the      ny as a     prin                         transfe       state reason                     ed
               s sold                                                                          tion or   erpart                                      date
                                      0,000)          ny        Compa      percent     ciple                        rred or       and actions                   inform
                                                                                                 not     y and
                                                    from          ny        age of                                     not            taken                      ation
                                                                                                          the
                                                  period-                    the
                                                                                                         Comp
                                                  beginni                  Compa
                                                                                                          any
                                                    ng to                    ny’s
                                                  date of                    net
                                                     sale                  income
                                                  (RMB’                     (%)
                                                   0,000)
              100%
                                                               Optimi
              owners
Xi'an                                                          zing
              hip of                                           the
Port                                                           Compa                                                                                            http://w
              Xi'an
Industri                                                       ny’s                                                                                            ww.cni
              Huashe                                           allocati
al                         27 June                2,133.4                  59.76%      Valu                                                         21 May      nfo.co
              ng                      22,000            6      on of                           No        No         Yes          N/A
Invest                     2022                                                        ation                                                        2022        m.cn/n
                                                               assets,
              Jiachen
ment                                                           increasi                                                                                         ew/ind
              g Real                                           ng
Co.,                                                           capital                                                                                          ex
              Estate
Ltd.                                                           liquidit
              Co.,                                             y
              Ltd.

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

                       Relationship      Principal
                                                              Registered                                           Operating            Operating
       Name              with the         activity                            Total assets       Net assets                                                 Net profit
                                                               capital                                              revenue              profit
                        Company
                                      Enterprise
Konka
                                      management
Ventures                                                     RMB5,000,0
                                      consulting                              223,578,126.     120,200,716.       31,161,190.4         62,703,273.4        55,537,960.5
Development            Subsidiary
                                      and                        00                84               08                 1                    2                   6
(Shenzhen)
                                      incubation
Co., Ltd.
                                      services
Hong Kong                             Export &
                                                                              2,551,862,87     380,991,707.       1,276,616,09         40,502,683.0        33,125,698.9
Konka Co.,             Subsidiary     import of              HKD500,000
                                                                                  1.39              39                9.80                  2                   4
Ltd.                                  electronics
Shenzhen
                                      Software
Wankaida
                                      design and             RMB10,000,       125,390,065.     124,169,421.                            10,142,561.5
Science and            Subsidiary                                                                                 6,079,320.00                             9,447,716.69
                                      technology               000                 33               47                                      9
Technology
                                      development
Co., Ltd.
Chain                                 Export &               USD4,876,25      1,151,676,28     141,764,411.       3,337,348,01
                       Subsidiary                                                                                                      1,068,238.30        899,361.51
Kingdom                               import of                 5.39              4.94              64                3.59


                                                                                      20
Konka Group Co., Ltd.                                                                                             Interim Report 2022


Memory                      electronics
Technologies
Co., Limited
Shenzhen
                            Manufacturin
Konka
                            g          and   RMB1,000,0   6,773,237,54     139,699,961.   1,723,359,91   54,664,140.0   48,210,215.1
Electronics    Subsidiary
                            marketing of       00,000         1.98              20            6.71            3              9
Technology
                            electronics
Co., Ltd.
Shenzhen
Konka                       Manufacturin
Telecommuni                 g          and   RMB480,000   1,197,850,61     261,018,865.   104,139,361.
               Subsidiary                                                                                7,873,162.26   7,873,162.26
cations                     marketing of       ,000           1.34              93             50
Technology                  electronics
Co., Ltd.

Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
                                                                             How subsidiary was             Effects on overall
                            Subsidiary                                    obtained or disposed in the    operations and operating
                                                                               Reporting Period                performance
Guizhou Konka New Energy Material Technology Co., Ltd.                   Newly incorporated
Jiangxi Konka High-tech Park Operation and Management Co., Ltd.          Newly incorporated              Beneficial to the
                                                                                                         development of the
Shangrao Konka Electronic Technology Innovation Co., Ltd.                Newly incorporated
                                                                                                         Company’s relevant
Zhejiang Konka Electronic Technology Co., Ltd.                           Newly incorporated              business
Zhejiang Konka Technology Industry Development Co., Ltd.                 Newly incorporated
Jiangxi Konka Industrial Park Development Co., Ltd.                      De-registered
                                                                                                         For better allocation of
Shanghai Xinfeng Zhuoqun PCB Co., Ltd.                                   De-registered
                                                                                                         assets
Ruichang Kangrui Real Estate Co., Ltd.                                   De-registered
Sichuan Chengrui Real Estate Co., Ltd.                                   Equity transfer
Chongqing Jiarun Real Estate Co., Ltd.                                   Equity transfer                 Beneficial to the
Xi'an Huasheng Jiacheng Real Estate Co., Ltd.                            Equity transfer                 development of the
Xi'an Feihe Real Estate Development Co., Ltd.                            Equity transfer                 Company’s relevant
Konka Industrial Development (Wuhan) Co., Ltd.                           Equity transfer                 business and bring about
Hefei KONSEMI Storage Technology Co., Ltd.                               Capital increase                a certain amount of gains
Hefei Yihe Electronic Co., Ltd.                                          Capital increase
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 consumer electronics business, the COVID-19 pandemic led to tight supply of
energy and bulk commodities, partially stalled logistics and commodity trading, sluggish consumer
demand and increasingly fierce market competition, due to which the Company's operating results
in the consumer electronics business fell somewhat. In regard to the color TV business, the
Company will promote the upgrade of the color TV business and improve the profitability thereof
through the following measures: First, build technical barriers. The Company will make use of the
advantages of the Micro LED business to extend to the upstream of the business, so as to form the
advantages of advanced manufacturing and precision manufacturing, and drive the upgrade of the
color TV business with the improvement of technical efficiency as the core. Second, consolidate
high-end manufacturing. The company will give full play to its manufacturing advantages,
consolidate high-end manufacturing, and actively integrate into the third-party ecological chain. In


                                                                21
Konka Group Co., Ltd.                                                                Interim Report 2022



the short run, the Company will focus on key components centering around the advantages of
intelligent manufacturing; in the long run, it will build an intelligent manufacturing platform based
on scientific and technological R&D, high-end manufacturing and supply chain, so as to incubate
diversified intelligent hardware businesses. Third, restructure efficient channels. The Company will
shift to efficient channels, arrange "online + offline" high-margin channels, master the trend of
consumption classification, strengthen band construction towards young consumers, continue to
promote the deep integration of online and offline operation, and improve the efficiency of both
operation and channel. Fourth, expand segmented markets. The Company will explore barrier-based
segmented markets centering around such technologies as 5G, AI-based IoT and 8K and, in
combination with user portrait, expand the application opportunities of multiple scenarios such as
HD screen and smart screen, and differentiate the layout of smart terminals such as smart health
care, smart medical treatment and smart community. In terms of the white goods business, the
Company will take the following measures to accelerate the scale growth of white goods and build a
new growth pole for the consumer electronics business: First, promote brand upgrade. The
Company is promoting the diversified development of brands through the "Konka + Frestec" dual-
brand operation strategy, in an effort to build the first-class brand image of refrigerators,
comprehensively improve the brand operation capability of air-conditioners and washing machines
and, through the synergetic development of the two brands of Konka and Frestec, expand the
Company's industrial scale in the field of white goods. Second, ensure diversified category layout.
The company will, with the three core product lines of "washing machine + refrigerator + air-
conditioner" as the core, explore the diversified layout of categories, strengthen the exploration of
new areas such as household appliances/kitchen appliances and, taking Frestec as a breakthrough
point, realize the diversified layout of white goods categories, strengthen the R&D of household
appliances categories, and actively explore the new direction for integrated development of
household appliances categories. Third, create high-end products. The Company will promote the
strategy of high-end products and, centering around the improvement of structure and the
enhancement of R&D capability for high-end products, accelerate the construction of medium- and
high-end product lines, improve export product lines, and strive to promote the comprehensive
upgrade of the quality and high-end orientation of products. Fourth, expand international market.
The company will intensify efforts on the layout of international market, adopt targeted layout
strategies in combination with the characteristics of overseas market, further improve both domestic
and foreign marketing systems, strengthen the layout of domestic blank market and international
market, and maximize the efficiency of channels.
The semiconductor business is featured by large R&D investment and uncertain R&D results. In
view of this, the company will focus on such technologies as Micro LED chip miniaturization and
massive transfer, accelerate the industrialization of four optoelectronic technology projects, namely


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Konka Group Co., Ltd.                                                     Interim Report 2022



Mini backlight, Mini direct display, Mini chip and Micro chip, and achieve technological
commercialization and output as soon as possible.




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Konka Group Co., Ltd.                                                                                                       Interim Report 2022




                                        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       participatio   Date of the meeting    Date of disclosure         Resolutions of the meeting
                                                   n ratio
 The First Extraordinary                                                                                    Resolutions of the First Extraordinary
                               Extraordinary       24.2123%     22 March 2022         23 March 2022
 General Meeting of 2022                                                                                    General Meeting of 2022
 The 2021 Annual General                                                                                    Resolutions of the 2021 Annual
                                  Periodic         24.1901%     25 April 2022         26 April 2022
 Meeting                                                                                                    General Meeting
                                                                                                            Resolutions of the Second
 The Second Extraordinary
                               Extraordinary       24.4254%     16 May 2022           17 May 2022           Extraordinary General Meeting of
 General Meeting of 2022
                                                                                                            2022
                                                                                                            Resolutions of the Third
 The Third Extraordinary
                               Extraordinary       24.4426%     27 June 2022          28 June 2022          Extraordinary General Meeting of
 General Meeting of 2022
                                                                                                            2022

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
Sun Qingyan       Vice President               Dismissed            28 February 2022          Resigned for change of job
Li Zheng          Director                     Retired              28 February 2022          Resigned for job arrangement
Ye Xingbin        Director                     Elected              21 March 2022             Elected as director by the general meeting
Lin Hongfan       Vice President               Appointed            1 June 2022               Appointed by the Board of Directors
III Interim Dividend Plan
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.




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Konka Group Co., Ltd.                                                                                                        Interim Report 2022




                           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
                                        Num
                                         ber
 Nam                            Way             Distributio                                                                                  Exce
                                          of                                                                    Total
  e of    Name of major           of               n of                                  Discharge standards             Approved total      ssive
                                        disch                  Discharge concentration                          disch
 pollu      pollutants         discha           discharge                                   implemented                    discharge         disch
                                        arge                                                                    arge
   ter                           rge             outlets                                                                                     arge
                                        outle
                                          ts
                                                                                                                Total
         Pollution sources
                                                              PH 6-9; total                                     disch   Total discharge
         of waste water:
                                                              copper≤0.3mg/L;                                  arge    of major
         PH, total copper,     Disch
                                                              COD≤50mg/L; ammonia                              of      pollutants: COD
         COD,                  arge
                                                Main          nitrogen≤8mg/L; total                            wast    19.061250
         ammonia nitrogen      of
 Xing                                           discharge     nitrogen≤15mg/L; total    GB 21900-2008          e       tons/year;
         , total nitrogen,     statio
 Da                                             outlet of     phosphorus≤0.5mg/L;       Discharge Standard     water   ammonia nitroge
         total phosphorus,     nary     1                                                                                                    None
 Hong                                           the waste     total cyanide≤0.2mg/L;    For Pollutants From    :       n 3.0498
         total cyanide,        pollut
 Ye                                             water         total nickel≤0.1mg/L;     Electroplating         497,8   tons/year; total
         total nickel, total   ion
                                                station       total iron≤2mg/L; total                          35      nitrogen 32.9792
         iron, total           sourc
                                                              aluminum≤2mg/L;                                  thous   tons/year; total
         aluminum,             es
                                                              petroleum≤2mg/L;                                 and     phosphorus
         petroleum,
                                                              suspended solids≤30mg/L                          tons/   0.2082 tons/year
         suspended solids
                                                                                                                year
                                                                                         Emission Standard
                                                                                         for Electroplating             Total discharge:
                                                                                         Pollutants                     2,986,560,000
                                                                                         GB21900-2008 Air               standard
         waste gas
                                                              sulfuric acid              Emission Limits                cube/year (note:
         pollutants:
                                                              fume≤30mg/m3; nitrogen    Table 5, Emission              the total
         sulfuric acid
                               Disch            Three on      oxide≤200mg/m3;           standard of Volatile           discharge is not
         fume, hydrogen
                               arge             the roof of   hydrogen                   Organic                2,986   stated in the
         chloride,
                               of               plant 1,      chloride≤30mg/m3;         Compounds for          ,560,   latest version of
 Xing    formaldehyde,
                               statio           ten on the    hydrogen                   Printing Industry      000     national
 Da      hydrogen
                               nary     14      roof of       cyanide≤0.5mg/m3;         DB44/815-2010;         stand   discharge permit     None
 Hong    cyanide, nitrogen
                               pollut           plant 2 and   TVOC≤90mg/m3;             Guangdong Air          ard     in 2021; two
 Ye      oxide, ammonia,
                               ion              one on the    benzene≤1mg/m3;           Pollutant Emission     cube/   exhaust towers
         benzene,
                               sourc            roof of the   toluene+xylene≤15mg/m3    Standard DB44/27-      year    were added in
         toluene+xylene,
                               es               canteen       ; tin and its              2001 the Second                2021; calculated
         TVOC, tin and its
                                                              compounds≤8.5mg/m3;       Level Standard in              based on air
         compounds,
                                                              PM(dust)≤120mg/m3         the Second Period,             volume in
         PM(dust)
                                                                                         Emission standard              environmental
                                                                                         for Odor Pollutants            impact
                                                                                         (GB 14554-1993)                assessment)
                                                                                         Table 2 Standard
                                                                                         1. Discharge
                                                                                         standard of
                                                                                         discharge permit:
                                                                                         Discharge Standard
                                                                                         of Electroplating
                                                              1. Emission standard for
                                                                                         Water Pollutant for            Total discharge
                                                              pollution discharge                               318,3
                                                                                         Electroplating                 amount is
 Bolu                                                         certificate:                                      00
                               Disch                                                     DB44/1597-2015                 318,300
 o                                                            copper≤0.5mg/L;                                  tons/
         Wastewater            arge                                                      Table 1 Pearl River            tons/year; COD
 Konk                                           Main          COD≤80mg/L; ammonia                              year
         pollution: PH,        of                                                        Delta Discharge                is 19.2 tons/year;
 a and                                          discharge     nitrogen≤10mg/L; total                           Note:
         copper, COD,          statio                                                    Standard; 2. Local             ammonia
 Bolu                                           outlet of     nitrogen≤20mg/L; total                           accor
         ammonia               nary     1                                                discharge standard:            nitrogen is 2.4      None
 o                                              the waste     phosphorus≤0.5mg/L; 2.                           ding
         nitrogen, total       pollut                                                    BFBH [2019] No.                tons/year; total
 Konk                                           water         local emission standard:                          to
         nitrogen, total       ion                                                       58 Document:                   nitrogen is 4.8
 a                                              station       copper≤0.5mg /L;                                 disch
         phosphorus            sourc                                                     COD, ammonia                   tons/year. Note:
 Preci                                                        COD≤30mg/L; ammonia                              arge
                               es                                                        nitrogen, total                according to the
 sion                                                         nitrogen≤1.5mg/L; total                          perm
                                                                                         phosphorus based               discharge
                                                              nitrogen≤10mg/L; total                           it
                                                                                         on "Environmental              certificate
                                                              phosphorus≤0.3mg/L
                                                                                         Quality Standards
                                                                                         for Surface Water
                                                                                         GB3838-2002 "
                                                                                         Category IV water
                                                                                         standard, the total


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Konka Group Co., Ltd.                                                                                            Interim Report 2022


                                                                                  nitrogen discharge
                                                                                  reaches 50% of
                                                                                  discharge limit
                                                                                  requirement of the
                                                                                  corresponding
                                                                                  industry
                                                                                  Emission Standard
                                                         sulfuric acid            for Electroplating
                                                         fume≤30mg/m3;          Pollutants
         waste                                           nitrogen                 GB21900-2008 Air
         gas pollutants:                                 oxide≤200mg/m3;        Emission Limits
 Bolu
         sulfuric acid       Disch         Six on the    hydrogen                 Table 5, Guangdong
 o
         fume, hydrogen      arge          roof of       chloride≤30mg/m3;      Air Pollutant             The total
 Konk
         chloride,           of            plant 1,      TVOC≤90mg/m3;          Emission Standard         discharge is not
 a and
         formaldehyde,hyd    statio        fourteen                               DB44/27-2001 the          stated in the
 Bolu                                                    benzene≤12mg/m3;
         rogen cyanide,      nary     20   on the roof                            Second Level          /   latest version of   None
 o                                                       methylbenzen≤40mg/m3
         nitrogen oxide,     pollut        of plant 2                             Standard in the           national
 Konk                                                    ;
         ammonia, benzen     ion           and one in                             Second Period,            discharge permit
 a                                                       dimethylbenzene≤70mg/
         e, methylbenzene,   sourc         sewage                                 Emission standard         in 2020
 Preci                                                   m3;tin and its
         TVOC, tin and its   es            station                                for Odor Pollutants
 sion                                                    compounds≤8.5mg/m3;
         compounds, PM                                                            (GB 14554-1993)
         (dust), oil fume                                PM(dust)               Table 2 Standard,
                                                         ≤120mg/m3;oil          Emission standard
                                                         fume≤2mg/m3             of cooking fume
                                                                                  (GB18483-2001)

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.
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

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Konka Group Co., Ltd.                                                                Interim Report 2022



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.
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
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


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Konka Group Co., Ltd.                                                              Interim Report 2022



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 assessment 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.
Contingency plan for emergent environmental incident
1. XingDa HongYe
In strict accordance with requirements of laws, regulations and relevant documents, such as Law of


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Konka Group Co., Ltd.                                                                 Interim Report 2022



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
Zhongshan Environmental Protection Bureau, Guangdong Province, record No.: 442000-2020-
0348-M. 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


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Konka Group Co., Ltd.                                                                  Interim Report 2022



(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.
Environmental self-monitoring plan
1. XingDa HongYe
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


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Konka Group Co., Ltd.                                                              Interim Report 2022



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.
No administrative punishments were received in the Reporting Period due to environmental issues.
Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co., Ltd. for
H1 2022 was approximately RMB21 million, mainly used for the investment in Environmental
governance equipment and facilities, 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 RMB5.65 million on
environmental protection in H1 2022 in total, mainly used for the daily operation and management
of waste water and gas as well as the maintenance and upgrading of equipment.
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□ Applicable √ Not applicable
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

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Konka Group Co., Ltd.                                                                 Interim Report 2022



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
(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.


                                                     32
Konka Group Co., Ltd.                                                               Interim Report 2022



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 the first half of 2022, the Company made donations to and purchased agricultural products from
Tianzhu County and Sansui County in Guizhou Province, with a total of about RMB320 thousand.
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
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


                                                   33
Konka Group Co., Ltd.                                                                Interim Report 2022



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.




                                                 34
Konka Group Co., Ltd.                                                                                                Interim Report 2022




                                             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
                                      ved
                                                                                                                              Index to
                                    amou                                                                             Discl
                                              Provisi                                            Execution of                 disclosed
       General information             nt               Progress      Decisions and effects                          osure
                                                on                                                decisions                  informatio
                                     (RM                                                                             date
                                                                                                                                  n
                                    B’0,0
                                      00)
 Because of a dispute over a        3,137               The   case   The case has entered     The case     is   in   19      http://www
                                             No
 purchase and sales contract, the   .20                 is      in   the execution phase.     execution.             Septe   .cninfo.co


                                                                     35
Konka Group Co., Ltd.                                                                                                        Interim Report 2022


 Company's subsidiary, Konka                               execution.    Based on the principle                              mber     m.cn/new/i
 Huanjia             Environmental                                       of    prudence,      the                            2020     ndex
 Technology Co., Ltd., sued Dalian                                       Company has accrued
 Guangxin            Environmental                                       corresponding
 Protection Equipment Technology                                         impairment reserves in
 Development Co., Ltd., requiring                                        accordance        with
 the latter to return equipment                                          accounting policies.
 payment already made and pay
 liquidated damages.
 As the bills held by the Company                                        The first instance has
 failed to be paid upon maturity,                                        been concluded. Based
 the Company filed a lawsuit with                                        on the principle of
                                                           The first                                                         19       http://www
 the court, requesting the latter to                                     prudence,            the
                                        20,00              instance                                 The case      is    in   Septe    .cninfo.co
 order Wuhan Jialian Agricultural               No                       Company has accrued
                                        0                  has been                                 execution.               mber     m.cn/new/i
 Technology Development Co.,                                             corresponding
                                                           concluded.                                                        2020     ndex
 Ltd. to pay the aforesaid bills and                                     impairment reserves in
 corresponding interest to the                                           accordance         with
 Company.                                                                accounting policies.
                                                                         The second instance
 Because of a dispute over a
                                                                         trial is ongoing. Based
 purchase and sales contract,
                                                           The           on the principle of
 Wumart Stores, Inc. sued the                                                                                                         http://www
                                                           second        prudence,            the                            25
 Beijing Branch of the Company to       1,783                                                       The case is under                 .cninfo.co
                                                No         instance      Company has accrued                                 June
 the People's Court of Shijingshan      .07                                                         trial.                            m.cn/new/i
                                                           trial    is   corresponding                                       2019
 District in Beijing, requiring the                                                                                                   ndex
                                                           ongoing.      impairment reserves in
 Beijing Branch to return the
                                                                         accordance         with
 prepayment for goods.
                                                                         accounting policies.
                                                           The
                                                           Company
                                                           has
                                                           recovered
 Because of a dispute over loan, the                                     The case has entered
                                                           execution
 Company's subsidiary, Anhui                                             the          execution
                                                           payment
 Konka Electronic Co., Ltd.,                                             phase.Based on the
                                                           of                                                                19       http://www
 applied for arbitration with                                            principle of prudence,
                                        2,141              USD3,005                                 The case      is    in   Septe    .cninfo.co
 Chuzhou Arbitration Commission,                No                       the Company has
                                        .50                ,700 and                                 execution.               mber     m.cn/new/i
 requiring the respondent, Makena                                        accrued corresponding
                                                           RMB63,5                                                           2020     ndex
 Electronic (Shenzhen) Co., Ltd.,                                        impairment reserves in
                                                           00, with
 to    assume      the   guarantee                                       accordance        with
                                                           the
 responsibility.                                                         accounting policies.
                                                           remaining
                                                           payment
                                                           still   in
                                                           execution.
 Because of a dispute over a
                                                                         The case has entered
 contract, the Company filed a
                                                                         the execution stage.
 lawsuit        with        Zhengzou
                                                                         Based on the principle
 Intermediate      People's    Court,                                                                                        19       http://www
                                                           The case      of    prudence,      the
 requiring Henan Radio and              3,904                                                       The case has been        Septe    .cninfo.co
                                                No         is      in    Company has accrued
 Television Network Co., Ltd. to        .90                                                         concluded.               mber     m.cn/new/i
                                                           execution.    corresponding
 take delivery of goods, make                                                                                                2020     ndex
                                                                         impairment reserves in
 payment for goods, and pay
                                                                         accordance        with
 interest and liquidated damages
                                                                         accounting policies.
 according to the contract.
 Because of a dispute over a
 contract,     Makena      Electronic
                                                           The
 (Shenzhen) Co., Ltd. filed a
                                                           plaintiff                                                         1        http://www
 lawsuit with the court, requiring                                                                  The plaintiff      has
                                        2,662              has           The    plaintiff  has                               Dece     .cninfo.co
 the Company and the Company's                  No                                                  withdrawn          the
                                        .43                withdrawn     withdrawn the lawsuit.                              mber     m.cn/new/i
 subsidiary,    Shenzhen       Konka                                                                lawsuit.
                                                           the                                                               2021     ndex
 Electronics Technology Co., Ltd.,
                                                           lawsuit.
 to make payment for goods and
 pay interest for overdue payment.
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), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97), the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48), the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) and the Company's periodic reports: 1. 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; 2. As matured notes were failed to be accepted, the Company has filed a lawsuit with the court to


                                                                         36
Konka Group Co., Ltd.                                                                                                            Interim Report 2022


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; 3. 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; 4. 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; 5. Due to dispute arisen from a logistics contract, the Company’s subsidiary Anhui Konka filed a lawsuit to
request the freight forwarder Shanghai Triangle Link Logistics Co., Ltd. Shenzhen Branch to make compensation; 6. 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; 7. Due to payment dispute, the Company’s subsidiary Hong Kong 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; 8. 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 Co.,
Ltd., to perform the repurchase obligation; 9. Because of dishonor of notes receivable, Konka Factoring filed a lawsuit with the court, requiring Tahoe
Group Co., Ltd., Fuzhou Taijia Industrial Co., Ltd. and Xiamen Lianchuang Microelectronics Co., Ltd. to make the payment of the note and the
corresponding interest to Konka Factoring.
The following cases have been disclosed in current announcements and periodic reports and are currently in trial. 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 Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) and the Company's periodic reports: 1. 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. 2. 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. 3. Because of a dispute over a contract, the Company's subsidiary, Shenzhen Konka
Unifortune Technology Co., Ltd. sued Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology Co., Ltd., Shenzhen Hongyao
Dingsheng Investment Management Limited Partnership, Shenzhen Xiangrui Yingtong Investment Management Co., Ltd., Luo Jingxia, Luo Zongwu,
Luo Zongyin, Luo Zaotong and Luo Saiyin, requiring them to make the payment of goods and liquidated damages; 4. Because of a dispute over an
agency agreement, the Company's subsidiary, Henan Frestec Refrigeration Appliance Co., Ltd., sued Shantou Meisen Technology Co., Ltd., Shenzhen
Meisenyuan Plastic Electronics Co., Ltd., Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., and Chuangfu Commerce &
Trade Plaza Real Estate Development (Huizhou) Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods
and liquidated damages and priority shall be given to the payment for the secured assets; 5. Because of a dispute over an agency agreement, the
Company's subsidiary, Henan Frestec Refrigeration Appliance Co., Ltd. sued Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Shantou Meisen
Technology Co., Ltd., Lin Yuanqin, Huang Ruirong, Chuangfu Commercial & Trade Plaza Real Estate Development (Huizhou) Co., Ltd., requesting
to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority shall be given to the payment for the
secured assets; 6. Because of a dispute over an Agency Agreement, the Company's subsidiary, Anhui Konka Electronics Technology Co., Ltd. sued
Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Shantou Meisen Technology Co., Ltd., Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware
Zone Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority shall be



                                                                          37
Konka Group Co., Ltd.                                                                                                           Interim Report 2022


given to the payment for the secured assets; 7. Because of a dispute over an Agency Agreement, the Company's subsidiary, Anhui Konka Electronics
Technology Co., Ltd. sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Lin Yuanqin, Huang Ruirong,
Jiangsu Huadong Hardware Zone Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and liquidated
damages and priority shall be given to the payment for the secured assets; 8. Because of a dispute over an Agency Agreement, the Company's
subsidiary, Hainan Konka Material Technology Co., Ltd. sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co.,
Ltd., Jiangsu Huadong Hardware Zone Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and
liquidated damages and priority shall be given to the payment for the secured assets; 9. Due to the infringement of trademark and unfair competition,
the Company sued Fu'an Xinshang Electronics Co., Ltd., Fujian Zhaoguan Industry and Trade Co., Ltd., Jinhua Kangjia Medical Apparatus Factory,
and Wang Jun, requesting an order to cease the infringement and an claim for compensation for losses; 10. Because of a dispute over repurchase, the
Company sued Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo Zongwu, Shenzhen Yaode Technology Co., Ltd., requesting the payment of share
repurchase and interest; 15. Because of a dispute over a contract, Makena Electronic (Shenzhen) Co., Ltd. filed a lawsuit, requesting the Company
and its subsidiary Shenzhen Konka Electronics Technology Co., Ltd. to pay the price of goods and the interest for late payment. 11. Because of a
dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Dalian Jinshunda
Material Recycling Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance
payment and pay liquidated damages. 12. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia
Environmental Technology Co., Ltd., sued Dalian Xinjie Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and
Wang Renping, requiring them to return the advance payment and pay liquidated damages. 13. Because of a dispute over a purchase and sales
contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Dalian Tianxing Renewable Resources Co., Ltd,
Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages.
14. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued
Huanjia Mingtai (Dalian) Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them
to return the advance payment and pay liquidated damages. 15. Because of a dispute over a purchase and sales contract, the Company's subsidiary,
Konka Huanjia Environmental Technology Co., Ltd., sued Lankao Shunjia Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde,
Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages. 16. Because of a dispute over a
purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Henan Shunhenghui Renewable
Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and
pay liquidated damages. 17. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental
Technology Co., Ltd., sued Henan Jiaxin Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping,
requiring them to return the advance payment and pay liquidated damages. 18. Because of a dispute over a purchase and sales contract, the Company's
subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Henan Shengxiang Renewable Resources Co., Ltd, Huanjia Group Co., Ltd.,
Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages. 19. Because of a dispute
over a logistics contract, Hefei Anluda Logistics Co., Ltd. sued the Company's subsidiary, Anhui Konka Tongchuang Electrical Appliances Co., Ltd.
with the People's Court of Nanqiao District in Chuzhou, requiring the latter to return the performance bond, pay transportation fee and interest already
incurred, and bear legal costs. 20. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental
Technology Co., Ltd., sued Zhejiang Jiade Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping,
requiring them to return the advance payment and pay liquidated damages. 21. Because of a dispute over a purchase and sales contract, the Company's
subsidiary, Konka Huanjia Environmental 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 liquidated damages. 22. Because of a
dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Zhejiang Xinkai
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 liquidated damages. 23. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia
Environmental Technology Co., Ltd., sued Henan Huanjia Chengxin Eco-protection Technology Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde,
Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages. 24. Because of a dispute over a
purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Henan Xincheng Renewable



                                                                          38
Konka Group Co., Ltd.                                                                                                                  Interim Report 2022


Resource Recycling Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance
payment and pay liquidated damages. 25. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia
Environmental Technology Co., Ltd., sued Henan Guozheng Eco-protection Technology Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang
Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages. 26. 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 in
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 make the overdue payment for goods and
pay corresponding liquidated damages.

Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable √ Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
                                                                                                                               Obtaina
                                                                                       As %
                                                                                                                                  ble                Index
            Relati                                                                   of total   Approv
                                                                                                            Over                market                  to
            onshi                                             Tran      Total          value       ed                Method
                       Type of                     Pricing                                                   the                 price    Disclos     discl
 Related    p with                   Specific                 sacti     value          of all   transact                of
                       transact                    princip                                                 approv                 for       ure       osed
  party       the                  transaction                 on      (RMB’         same-     ion line             settlem
                          ion                         le                                                   ed line              same-      date       infor
            Comp                                              price    0,000)          type     (RMB’                 ent
                                                                                                           or not                type                matio
             any                                                                     transact    0,000)
                                                                                                                               transact                 n
                                                                                        ions
                                                                                                                                 ions

 OCT        Under     Purchas
 Enterpr    the       e of        Property
 ises
            same      commo       manageme         Negoti    Mark                                                                         30
 Co.,                                                                  3,771.2
                                  nt, utilities,    ated      et                      0.74%     10,000     Not       Cash      N/A        March
 Ltd and                                                                     0
            actual    dities      office            price    price                                                                        2022
 its
                                  leases                                                                                                             http:/
 subsidi    contro    and                                                                                                                            /ww
 aries
            ller      services                                                                                                                       w.cni
                                  Sale       of                                                                                                      nfo.c
                                  TVs,                                                                                                               om.c
 OCT        Under     Sales of
                                  intelligent                                                                                                        n/ne
 Enterpr    the       goods                                                                                                                          w/ind
                                  terminals,
 ises                                                                                                                                                ex
            same      and         etc.     and     Negoti    Mark                                                                         30
 Co.,                                                                  13,351.
                                  collection        ated      et                      2.54%     20,000     Not       Cash      N/A        March
 Ltd and                                                                   24
            actual    services    of                price    price                                                                        2022
 its
                                  installation
 subsidi    contro                charges for
 aries
            ller                  smart TV
                                  terminals
                                                                       17,122.
 Total                                               --        --                       --      30,000       --        --         --         --        --
                                                                           44
 Large-amount sales return in detail               N/A
                                                   The Company has published the Forecasting Public Notice on Routine Related-party Transaction for
 Give the actual situation in the Reporting
                                                   Y2022 on Securities Times, Shanghai Securities News, and China Securities Journal as well as the Internet
 Period (if any) where an estimate had been
                                                   website designated by CSRC http://http://www.cninfo.com.cn/new/index on 30 March 2022. In the
 made for the total value of continuing
                                                   Reporting Period, the basis for pricing, transaction price, transaction amount and settlement methods of
 related-party transactions by type to occur in
                                                   raw materials purchased by the Company were basically in accordance with the forecast. The total amount
 the Reporting Period
                                                   incurred was RMB171.2244 million.
 Reason for any significant difference
 between the transaction price and the market      N/A
 reference price (if applicable)




                                                                                39
Konka Group Co., Ltd.                                                                                                                  Interim Report 2022



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    Beginni
                                                                                   the           in the                              the           Ending
                                                     occupation        ng
                       Related         Forming                                  Reporting      Reporting                         Reporting         balance
  Related party                                        on non-      balance                                   Interest rate
                     relationship       reason                                    Period        Period                             Period        (RMB’0,00
                                                      operating    (RMB’0
                                                                               (RMB’0,00     (RMB’0,00                        (RMB’0,00            0)
                                                      capital or     ,000)
                                                                                    0)             0)                                 0)
                                                         not
Chuzhou                                 Demand
                      Subsidiary
Kangjin Health                          of
                      of                                            15,773.
Industry                                business    Not                                  0          2,450           7.00%            522.37       13,323.64
                      controlling                                       64
Development                             developm
                      shareholder
Co., Ltd.                               ent
Effects of credits with related parties on the      No effect to the normal operation of the Company. The Company and other shareholders of Chuzhou
Company’s operating results and financial          Kangjin Health Industry Development Co., Ltd. offer financial assistance under the same conditions in
conditions                                          accordance to their shareholding ratio.

Liabilities payable to related parties:
                                                                     Increased in       Recovered in                          Interest in
                                                    Beginning            the                the                                   the            Ending
                  Related
   Related                       Forming             balance          Reporting          Reporting          Interest          Reporting          balance
                  relation
    party                         reason           (RMB’0,000          Period             Period             rate              Period         (RMB’0,000
                    ship
                                                        )            (RMB’0,000        (RMB’0,000                           (RMB’0,0             )
                                                                          )                  )                                    00)
                                                       1,091.00                             1,091.00           4.04%                22.16
                                    The              100,000.00                            48,909.00           4.04%            2,031.22         51,091.00
 OCT              Control
                                 Company
 Enterprise        ling                               20,000.00                                                4.04%              406.24         20,000.00
                                  applies
 s Co.,           shareh                                               150,000.00                              4.04%            2,895.33        150,000.00
                                 entrusted
 Ltd.              older                                                50,000.00                              4.04%              241.28         50,000.00
                                 loan to it
                                                                        70,000.00                              4.04%              282.80         70,000.00
                                                                       100,000.00         100,000.00           4.04%                11.22
 Effects of liabilities with related
                                                   The Company applies entrusted loan from OCT Enterprises Co., Ltd. which meets the
 parties on the Company’s operating
                                                   needs of the company's existing business development and reduces the financing cost.
 results and financial conditions
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any
other finance business with any related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable √ Not applicable


                                                                              40
Konka Group Co., Ltd.                                                                                  Interim Report 2022



The finance company controlled by the Company did not make deposits, receive loans or credit
from and was not involved in any other finance business with any related parties.
7. Other Major Related-Party Transactions
√Applicable □ Not applicable
In order to satisfy the capital needs of Chuzhou Kangjin Health Industry Development Co., Ltd.
(Chuzhou Kangjin) for daily operations, as of the disclosure date of this periodic report,the
Company made a capital increase of RMB157.7359 million to Chuzhou Kangjin (consideration of
RMB1 for RMB1 of registered capital) together with Shanghai OCT Co., Ltd. in proportion to their
shareholding percentages in Chuzhou Kangjin. Upon the capital increase, the registered capital of
Chuzhou Kangjin would increase from RMB30 million to RMB351.91 million. And the Company’s
shareholding percentage in Chuzhou Kangjin would remain unchanged.
Index to the public announcements about the said related-party transactions disclosed
                           Title of public announcement                            Disclosure date   Disclosure website
Announcement on a Capital Increase to Chuzhou Kangjin Health Industry
                                                                                 2 June 2022
Development Co., Ltd. and the Related-party Transaction
Announcement on the Provision of Guarantee Line for Joint Stock Company and
                                                                                 28 April 2022
the Related-party Transaction
Announcement on the Application to China Everbright Bank for Comprehensive
                                                                                 30 March 2022
Credit Line & the Related-party Transaction
                                                                                                     http://www.cninfo.
Announcement on the Provision of Counter-guarantee for the Application to Bank
                                                                                 30 March 2022       com.cn/new/index
for Credit Line & the Related-party Transaction
Announcement on the Termination of the Asset Acquisition by Share Offering and
                                                                                 7 March 2022
Cash Payment and Raising the Matching Funds & the Related-party Transaction
Announcement on the Provision of Counter-guarantee by Shenzhen Konka
Telecommunications Technology Co., Ltd. to Shenzhen Overseas Chinese Town        23 February 2022
Co., Ltd. & the Related-party Transaction
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 rental revenue of Konka R&D Building was approximately RMB34,263,075.17 in the
Reporting Period.
The project bringing about gains or losses as over 10% of total profit in the Reporting Period


                                                             41
Konka Group Co., Ltd.                                                                                                                                             Interim Report 2022



□ 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)
                           Disclosure date of                             Actual            Actual        Type of       Collater          Counter      Term of     Having      Guarantee
                                                       Line of
       Obligor             the guarantee line                         occurrence        guarantee        guarante         al (if         guarantee     guarant    expired      for a related
                                                      guarantee
                               announcement                                date             amount               e        any)            (if any)           ee    or not      party or not

 Yibin OCT Sanjiang       2018/09/19 and                                                                 Joint-                                        Three
                                                          40,000     2019/09/29               14,000                        No           Not                        Not              Yes
 Properties Co., Ltd.     2020/03/24                                                                     liability                                     years

                                                                                               1,749     Joint-                                        One
                                                                     2022/05/19                                             No           Not                      Not          Not
                                                                                                         liability                                     year
                                                                                               3,747     Joint-                                        One
                                                                     2022/05/17                                             No           Not                      Not          Not
                                                                                                         liability                                     year
 Econ Technology          2022/04/28                      50,000
                                                                                               4,997     Joint-                                        One
                                                                     2022/05/18                                             No           Not                      Not          Not
                                                                                                         liability                                     year
                                                                                                250      Joint-                                        One
                                                                     2022/06/28                                             No           Not                      Not          Not
                                                                                                         liability                                     year
 Shenzhen Overseas
                                                                                                 Joint-                                     One
 Chinese Town Co.,         2022/02/23                     16,000    2022/05/31          10,000                    No        Not                          Not                   Not
                                                                                                 liability                                  year
 Ltd.
 Foshan Pearl River
 Media Creative Park                                                                             Joint-                                     One
                           2022/04/28                      1,372    2022/05/17             980                    No        Not                          Not                   Not
 Culture Development                                                                             liability                                  year
 Co., Ltd.
 Jiangxi Xinxin
                                                                                                 Joint-
 Jian’an Engineering                                     10,000    2016/12/12          10,000                    No        Not                          Not                   Not
                                                                                                 liability
 Co., Ltd.
 Jiangxi Zhongyi
                                                                                                 Joint-
 Decoration Materials                                     10,000    2016/12/12          10,000                    No        Not                          Not                   Not
                                                                                                 liability
 Co., Ltd.
 Jiangxi Shanshi
 Technological                                                                                   Joint-
                                                          10,000    2016/12/12          10,000                    No        Not                          Not                   Not
 Development Co.,                                                                                liability
 Ltd.
 Total approved line for such guarantees in the Reporting                                        Total actual amount of such guarantees in the Reporting Period
                                                                                       651,872                                                                                        21,723
 Period (A1)                                                                                     (A2)
 Total approved line for such guarantees at the end of the                                       Total actual balance of such guarantees at the end of the
                                                                                       785,572                                                                                        65,723
 Reporting Period (A3)                                                                           Reporting Period (A4)
                                                              Guarantees provided between the Company and subsidiaries
                                                                                                                                                                                Guarantee
                     Disclosure
                                         Line of                               Actual                                Collater        Counter                       Having         for a
                     date of the                      Actual occurrence                             Type of                                           Term of
   Obligor                              guarante                              guarantee                               al (if        guarantee                     expired or     related
                   guarantee line                            date                                  guarantee                                         guarantee
                                            e                                  amount                                 any)           (if any)                        not         party or
                   announcement
                                                                                                                                                                                    not
                                                     2021/07/16                     6,000      Joint-liability         No          Not               One year     Not           Not
                   2018/05/23
 Anhui                                               2021/10/28                     3,000      Joint-liability         No          Not               One year     Not           Not
                   and                    55,000
 Tongchuang                                          2022/04/14                     5,000      Joint-liability         No          Not               One year     Not           Not
                   2018/09/19
                                                     2022/06/02                     3,000      Joint-liability         No          Not               One year     Not           Not
                   2017/03/31,                       2021/09/08                    11,000      Joint-liability         No          Not               One year     Not           Not
 Hong Kong         2018/10/31
                                          90,000
 Konka             and                               2022/02/09                    10,000      Joint-liability         No          Not               One year     Not           Not
                   2022/04/28
                   2018/03/31
 Boluo Konka                                                                                                                                         Three
                   and                   125,000     2020/08/19                     2,480      Joint-liability         No          Not                            Not           Not
 Precision                                                                                                                                           years
                   2022/04/28
                                                     2021/10/18                     7,000      Joint-liability         No          Not               One year     Not           Not
 Electronics
                   2018/9/19             350,000     2021/11/05                    50,000      Joint-liability         No          Not               One year     Not           Not
 Technology
                                                     2022/04/12                     1,500      Joint-liability         No          Not               One year     Not           Not
 Dongguan          2018/9/19, and                    2022/03/18                     5,000      Joint-liability         No          Not               One year     Not           Not
                                          90,000
 Konka             2021/3/24                         2021/06/23                    80,000      Joint-liability         No          Not               Ten years    Not           Not
                                                     2022/2/23                      5,800      Joint-liability         No          Other             Two years    Not           Not
                                                                                                                                   shareholder       Three
                                                     2020/12/25                     2,000      Joint-liability         No          of XingDa                      Not           Not
                                                                                                                                                     years
                                                                                                                                   HongYe
                                                                                                                                   provides a
                                                                                                                                   counter
 XingDa
                   2018/9/19              10,000                                                                                   guarantee
 HongYe
                                                                                                                                   for the
                                                     2021/5/31                       750       Joint-liability         No                            Two years    Not           Not
                                                                                                                                   Company
                                                                                                                                   for 49% of
                                                                                                                                   the
                                                                                                                                   guarantee
                                                                                                                                   line
                                                                                                                                   Other             Three
 Jiangxi                                             2020/11/06                    10,000      Joint-liability         No                                         Not           Not
                   2018/10/31             60,000                                                                                   shareholder       years
 Konka
                                                     2022/06/26                     6,000      Joint-liability         No          of Jiangxi        One year     Not           Not



                                                                                              42
Konka Group Co., Ltd.                                                                                               Interim Report 2022


                                                                                         Konka         Three
                                            2020/09/29   10,000   Joint-liability   No                              Not      Not
                                                                                         provides a    years
                                                                                         counter
                                            2020/12/21    5,000   Joint-liability   No   guarantee     Two years    Not      Not
                                                                                         for the       Three
                                            2019/06/26    5,500   Joint-liability   No   Company       years and    Not      Not
                                                                                         for 49% of    a half
                                                                                         the           Three
                                            2019/10/30    6,500   Joint-liability   No   guarantee                  Not      Not
                                                                                                       years
                                                                                         line
                                            2022/03/10     990    Joint-liability   No                 Two years    Not      Not
                                                                                                       Three
                                            2020/12/30    1,000   Joint-liability   No                              Not      Not
                                                                                                       years
                                                                                         Other         Three
                                            2020/05/19    5,000   Joint-liability   No                              Not      Not
                                                                                         shareholder   years
                                                                                         of Xinfeng    Two years
                                            2020/05/29    3,479   Joint-liability   No   Microcrysta                Not      Not
                                                                                                       and a half
                                                                                         lline         Three
                                            2020/12/08    2,100   Joint-liability   No   provides a                 Not      Not
 Xinfeng                                                                                               years
                                            2021/12/27    7,200   Joint-liability   No   counter       One year     Not      Not
 Microcrystall   2019/3/30         25,000
                                                                                         guarantee
 ine
                                                                                         for the
                                                                                         Company
                                            2022/06/29    7,200   Joint-liability   No   for 49% of    One year     Not      Not
                                                                                         the
                                                                                         guarantee
                                                                                         line
                                                                                         Other         Three
                                            2019/06/26   10,000   Joint-liability   No   shareholder   years and    Not      Not
                                                                                         of Jiangxi    a half
                                                                                         High          Three
                                            2020/01/08    5,000   Joint-liability   No   Transparent                Not      Not
                                                                                                       years
                                                                                         Substrate     Three
 Jiangxi High                               2019/12/20    5,000   Joint-liability   No   provides a                 Not      Not
                                                                                                       years
 Transparent     2019/3/30         45,000   2022/03/10     990    Joint-liability   No   counter       Two years    Not      Not
 Substrate                                                                               guarantee     Two years
                                            2020/05/29    5,975   Joint-liability   No   for the                    Not      Not
                                                                                                       and a half
                                                                                         Company
                                                                                         for 49% of
                                                                                         the           Three
                                            2020/07/14    6,000   Joint-liability   No                              Not      Not
                                                                                         guarantee     years
                                                                                         line


 Sichuan         2018/3/31, and
                                   65,000   2022/03/22    4,000   Joint-liability   No   No            One year     Not      Not
 Konka           2021/3/24


                 2020/06/06
 Ningbo                                     2020/10/15    6,000   Joint-liability   No   No            Two years    Not      Not
                 and               12,000
 Kanghanrui
                 2022/04/28                 2021/07/12    6,000   Joint-liability   No   No            One year     Not      Not
                                                                                         Other
                                                                                         shareholder
                                                                                         of Yibin
                                                                                         Kangrun
                                                                                         provides a
                                                                                         counter
 Yibin
                 2020/10/24        10,000   2020/11/13   10,000   Joint-liability   No   guarantee     Four years   Not      Not
 Kangrun
                                                                                         for the
                                                                                         Company
                                                                                         for 33% of
                                                                                         the
                                                                                         guarantee
                                                                                         line
 Telecommun
 ication         2022/04/28        20,000   2022/05/20    7,500   Joint-liability   No   No            One year     Not      Not
 Technology
                                                                                         Other         One year
                                            2021/03/25   20,000   Joint-liability   No                              Not      Not
                                                                                         shareholder   and a half
                                                                                         of Anhui      One year
                                            2021/04/02    5,500   Joint-liability   No   Konka                      Not      Not
                                                                                                       and a half
                                                                                         provides a    One year
                 2017/03/31                 2021/04/25   12,000   Joint-liability   No   counter                    Not      Not
                                                                                                       and a half
 Anhui Konka     and              110,000   2021/08/10   28,000   Joint-liability   No   guarantee     Ten years    Not      Not
                 2022/04/28                                                              for the
                                                                                         Company
                                                                                         for 22% of
                                            2021/10/29    7,000   Joint-liability   No   the           Five years   Not      Not
                                                                                         guarantee
                                                                                         line
                                                                                                       Three
 Konka
                 2021/03/24        50,000   2021/05/24   20,000   Joint-liability   No   No            years and    Not      Not
 Circuit
                                                                                                       a half
 Mobile          2017/03/31
 Interconnecti   and               10,000   2021/08/11    5,000   Joint-liability   No   No            One year     Not      Not
 on              2022/04/28
                 2021/03/24                 2021/12/23    2,000   Joint-liability   No   No            One year     Not      Not
 Liaoyang
                 and               20,000
 Kangshun                                   2022/01/19    5,000   Joint-liability   No   No            One year     Not      Not
                 2022/04/28
 Konka                                      2021/07/12   20,000   Joint-liability   No   No            One year     Not      Not
                 2021/03/24        30,000
 Xinyun                                     2022/05/26    6,000   Joint-liability   No   No            Two years    Not      Not
 Yibin Konka
                 2021/03/24        10,000   2022/03/31     980    Joint-liability   No   No            One year     Not      Not
 Intelligent


                                                                  43
Konka Group Co., Ltd.                                                                                                                                          Interim Report 2022


                                                                                                            Total actual amount of such guarantees in the
 Total approved line for such guarantees in the Reporting Period (B1)                              334,470                                                                       68,960
                                                                                                            Reporting Period (B2)
                                                                                                            Total actual balance of such guarantees at the
 Total approved line for such guarantees at the end of the Reporting Period (B3)              1,605,103                                                                      460,444
                                                                                                            end of the Reporting Period (B4)
                                                                      Guarantees provided between subsidiaries
                                                                                                                                                                           Guarantee
                     Disclosure
                                        Line of                               Actual                             Collater      Counter                         Having        for a
                     date of the                     Actual occurrence                          Type of                                         Term of
    Obligor                            guarante                              guarantee                            al (if      guarantee                       expired or    related
                   guarantee line                           date                               guarantee                                       guarantee
                                           e                                  amount                              any)         (if any)                          not        party or
                   announcement
                                                                                                                                                                              not
                                                                                                                 Lands,
                                                                                                                 house
 Anhui
                                                                                           Mortgage,             propert                      Three
 Electrical                              13,500     2020/07/03                  13,500                                        No                              Not          Not
                                                                                           pledge                y,                           years
 Appliance
                                                                                                                 equity
                                                                                                                 interests
                                                                                                                 House
 Boluo Konka
                                         12,449     2021/07/06                  12,449     Mortgage              propert      No              Two years       Not          Not
 Precision
                                                                                                                 y
                                                                                                                 Total actual amount of such guarantees in the
 Total approved line for such guarantees in the Reporting Period (C1)                                      0                                                                         0
                                                                                                                 Reporting Period (C2)
                                                                                                                 Total actual balance of such guarantees at the end of
 Total approved line for such guarantees at the end of the Reporting Period (C3)                    25,949                                                                       25,949
                                                                                                                 the Reporting Period (C4)
 Total guarantee amount (total of the three kinds of guarantees above)
                                                                                                                  Total actual guarantee amount in the Reporting
 Total guarantee line approved in the Reporting Period (A1+B1+C1)                                   986,342                                                                      90,683
                                                                                                                  Period (A2+B2+C2)
                                                                                                                  Total actual guarantee balance at the end of the
 Total approved guarantee line at the end of the Reporting Period (A3+B3+C3)                      2,416,624                                                                  552,116
                                                                                                                  Reporting Period (A4+B4+C4)
 Total actual guarantee amount (A4+B4+C4) as % of the Company’s
                                                                                                                                                                             59.47%
 net assets
 Of which:
 Balance of guarantees provided for shareholders, actual controller and their related parties (D)                                                                             24,000
 Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E)                                                               552,116
 Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F)                                                                                      87,944
 Total of the three amounts above (D+E+F)                                                                                                                                    552,116
 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
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:
□ Applicable √ Not applicable
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
√ Applicable □ Not applicable
(I) 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 RMB487,337,300. 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 49.7018% of the total units. By the date of this report, Shenzhen Konka Investment


                                                                                          44
      Konka Group Co., Ltd.                                                                                                   Interim Report 2022



      Holding Co., Ltd. has contributed RMB173,939,600. 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 RMB200,000,000. The fund invested in Feidi
      Technology (Shenzhen) Co., Ltd., Guangdong Tianyu Venture Capital Partnership (Limited
      Partnership), etc. The total units of Yibin Kanghui Electronic Information Industry Equity
      Investment Fund worth RMB1,002,000,000. Shenzhen Konka Investment Holding Co., Ltd. and
      Shenzhen Konka Capital Equity Investment Management Co., Ltd. contributed RMB401 million,
      accounting for 40.02% of the total units. By the issuance date of this report, Shenzhen Konka
      Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management Co.,
      Ltd. have contributed RMB104 million. The fund invested in Talkweb Information System Co., Ltd.
      and Shenzhen E2info Network Technology Co., Ltd. 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 RMB217,366,600. The fund invested in Anhui Zhongdian Xingfa and Xinlong Co., Ltd.,
      etc. The total units of Chongqing Kangxin Equity Investment Fund worth RMB2 billion. Shenzhen
      Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management
      Co., Ltd. contributed RMB1 billion, accounting for 50.00% 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 RMB148,250,100. The fund invested in Jiangxi
      Taide Wisdom Technology Co., Ltd., etc.
      (II) Disclosure index of significant information
Announce                                                                                                                                           Website
             Date                                         Title                                                 Page on newspaper
ment No.                                                                                                                                              link
                       Announcement on Progress of Asset Acquisition and Funds Raising by                                                         http://ww
                                                                                                   Securities Daily B76, Shanghai Securities News
2022-01    2022/1/8    Issuance of Shares and Cash Payment and Progress of Related Transaction                                                    w.cninfo.c
                                                                                                   28, etc.
                       Plan After Disclosure                                                                                                      om.cn/ne
                       Announcement on Resolutions of 53th Meeting of the Ninth Board of Securities Daily B22, Shanghai Securities News w/index
2022-02    2022/1/18
                       Directors                                                                   84, etc.
                       Announcement on Proposed introduction of Strategic Investors by Controlling Securities Daily B22, Shanghai Securities News
2022-03    2022/1/18
                       Company                                                                     84, etc.
                                                                                                   Securities Daily B31, Shanghai Securities News
2022-04    2022/1/25   2021 Result Forecast
                                                                                                   29, etc.
                                                                                                   Securities Daily B31, Shanghai Securities News
2022-05    2022/1/25   Announcement on Progress of Security for Controlling Company
                                                                                                   29, etc.
                       Announcement on Progress of Asset Acquisition and Funds Raising by
                                                                                                   Securities Daily B31, Shanghai Securities News
2022-06    2022/2/9    Issuance of Shares and Cash Payment and Progress of Related Transaction
                                                                                                   36, etc.
                       Plan After Disclosure
                                                                                                   Securities Daily B37, Shanghai Securities News
2022-07    2022/2/17   Announcement on the Change of the Signatory Certified Public Accountant
                                                                                                   16, etc.
                       Announcement on Resolutions of 54th Meeting of the Ninth Board of Securities Daily B38, Shanghai Securities News
2022-08    2022/2/23
                       Directors                                                                   33, etc.
                       Announcement on Providing Financial Assistance to Shandong Econ Securities Daily B38, Shanghai Securities News
2022-09    2022/2/23
                       Technology Co., Ltd. at Shareholding Ratio                                  33, etc.


                                                                           45
     Konka Group Co., Ltd.                                                                                                  Interim Report 2022


                      Announcement on Providing Counter Guarantee to and Conducting
                                                                                                  Securities Daily B38, Shanghai Securities News
2022-10   2022/2/23   Connected Transaction with Shenzhen Overseas Chinese Town Co., Ltd. by
                                                                                                  33, etc.
                      Shenzhen Konka Telecommunications Technology Co., Ltd.
                      Announcement on Progress of Guarantee Provision for GuangDong XingDa Securities Daily B38, Shanghai Securities News
2022-11   2022/2/23
                      HongYe Electronic Co., Ltd.                                                 33, etc.
                                                                                                  Securities Daily B48, Shanghai Securities News
2022-12   2022/3/1    Announcement on Resignation of the Company's Director
                                                                                                  60, etc.
                                                                                                  Securities Daily B48, Shanghai Securities News
2022-13   2022/3/1    Announcement on Resignation of the Company's Vice President
                                                                                                  60, etc.
                      Announcement on Resolutions of 55th Meeting of the Ninth Board of Securities Daily B3, Shanghai Securities News
2022-14   2022/3/7
                      Directors                                                                   28, etc.
                      Announcement on Resolutions of 19th Meeting of the Ninth Board of Securities Daily B3, Shanghai Securities News
2022-15   2022/3/7
                      Directors                                                                   28, etc.
                      Announcement on Providing Financial Assistance to Sichuan Chengrui Real Securities Daily B3, Shanghai Securities News
2022-16   2022/3/7
                      Estate Co., Ltd. at Shareholding Ratio                                      28, etc.
                                                                                                  Securities Daily B3, Shanghai Securities News
2022-17   2022/3/7    Notice on Convening 2022 First Extraordinary General Meeting
                                                                                                  28, etc.
                      Announcement on the Termination of Asset Acquisition and Funds Raising by Securities Daily B3, Shanghai Securities News
2022-18   2022/3/7
                      Issuance of Shares or Cash Payment and Related Transaction Matters          28, etc.
                                                                                                  Securities Daily B54, Shanghai Securities News
2022-19   2022/3/23   Announcement on Resolutions of 2022 First Extraordinary General Meeting
                                                                                                  60, etc.
                      Announcement on the Postponement of the Replacement of the Board of Securities Daily B14, Shanghai Securities News
2022-20   2022/3/24
                      Directors and the Board of Supervisors                                      16, etc.
                      Announcement on Proposed Introduction of Strategic Investors by Controlling Securities Daily B60, Shanghai Securities News
2022-21   2022/3/25
                      Company                                                                     84, etc.
2022-22   2022/3/30   2021 Annual Report of Mercedes-Benz Group AG
                      Announcement on Resolutions of 56th Meeting of the Ninth Board of Securities Daily B55, Shanghai Securities News
2022-23   2022/3/30
                      Directors                                                                   57, etc.
                      Announcement on Resolutions of 20th Meeting of the Ninth Board of Securities Daily B55, Shanghai Securities News
2022-24   2022/3/30
                      Directors                                                                   57, etc.
                                                                                                  Securities Daily B56, Shanghai Securities News
2022-25   2022/3/30   Announcement on Expected Routine Connected Transactions in 2022
                                                                                                  57, etc.
                                                                                                  Securities Daily B55, Shanghai Securities News
2022-26   2022/3/30   Announcement on Plan of Profit Distribution for 2022
                                                                                                  59, etc.
                                                                                                  Securities Daily B55, Shanghai Securities News
2022-27   2022/3/30   Notice on Convening 2021 Shareholders' General Meeting
                                                                                                  57, etc.
                                                                                                  Securities Daily B55, Shanghai Securities News
2022-28   2022/3/30   Announcement on Accrual of Asset Impairment Reserves for 2021
                                                                                                  57, etc.
                      Announcement on Providing Counter Guarantee and Conducting Connected Securities Daily B55, Shanghai Securities News
2022-29   2022/3/30
                      Transaction for Applying for Bank Credit Business                           59, etc.
                      Announcement on Issuing the Plan for the Company's Private Offering of Securities Daily B56, Shanghai Securities News
2022-30   2022/3/30
                      Corporate Bonds and Providing Counter Guarantee for OCT Group               59, etc.
                      Announcement on Applying for a Comprehensive Line of Credit to and Securities Daily B56, Shanghai Securities News
2022-31   2022/3/30
                      Conducting Connected Transactions with China Everbright Bank                57, etc.
                                                                                                  Securities Daily B55, Shanghai Securities News
2022-32   2022/3/30   Abstract of 2021 Annual Report
                                                                                                  57, etc.
                      Announcement on Completion of Industrial and Commercial Registration of
                                                                                                  Securities Daily B92, Shanghai Securities News
2022-33   2022/4/1    Changes for Capital Increase of Hefei KONSEMI Storage Technology Co.,
                                                                                                  92, etc.
                      Ltd.
                                                                                                  Securities Daily B92, Shanghai Securities News
2022-34   2022/4/1    Announcement on Holding 2021 Online Result Release
                                                                                                  92, etc.
                                                                                                  Securities Daily B100, Shanghai Securities
2022-35   2022/4/1    Announcement on Progress of Security for Controlling Company
                                                                                                  News 92, etc.
                                                                                                  Securities Daily B219, Shanghai Securities
2022-36   2022/4/26   Announcement on Resolutions of 2021 Shareholders' General Meeting
                                                                                                  News 236, etc.
                                                                                                  Securities Daily B181, Shanghai Securities
2022-37   2022/4/28   2022Q1 Report
                                                                                                  News 193, etc.
                                                                                                  Securities Daily B183, Shanghai Securities
2022-38   2022/4/28   Notice on Convening 2022 Second Extraordinary General Meeting
                                                                                                  News 194, etc.
                      Announcement on Resolutions of 57th Meeting of the Ninth Board of Securities Daily B181, Shanghai Securities
2022-39   2022/4/28
                      Directors                                                                   News 193, etc.
                      Announcement on Proposed Sale of Some of Equity in Chutian Dragon Co., Securities Daily B183, Shanghai Securities
2022-40   2022/4/28
                      Ltd.                                                                        News 194, etc.
                      Announcement on Progress of Guarantee Provision for Wholly-owned Securities Daily B182, Shanghai Securities
2022-41   2022/4/28
                      Company                                                                     News 194, etc.
                                                                                                  Securities Daily B181, Shanghai Securities
2022-42   2022/4/28   Announcement on External Guarantee
                                                                                                  News 193, etc.
                      Announcement on Providing Security Limit to and Conducting Connected Securities Daily B182, Shanghai Securities
2022-43   2022/4/28
                      Transaction with Shareholding Company                                       News 194, etc.


                                                                          46
     Konka Group Co., Ltd.                                                                                                   Interim Report 2022


                      Announcement on Resolutions of 2022 Second Extraordinary General Securities            Daily B91, Shanghai Securities News
2022-44   2022/5/17
                      Meeting                                                                   76, etc.
                      Announcement on Resolutions of 58th Meeting of the Ninth Board of Securities           Daily B16, Shanghai Securities News
2022-45   2022/5/21
                      Directors                                                                 25, etc.
                      Announcement on Transfer of 100% of Equity in Xi'an Huasheng Jiacheng Securities       Daily B16, Shanghai Securities News
2022-46   2022/5/21
                      Real Estate Co., Ltd.                                                     25, etc.
                      Announcement on Resolutions of 59th Meeting of the Ninth Board of Securities           Daily B16, Shanghai Securities News
2022-47   2022/6/2
                      Directors                                                                 41, etc.
                      Announcement on Increasing Capital to and Conducting Connected Securities              Daily B16, Shanghai Securities News
2022-48   2022/6/2
                      Transaction with Chuzhou Kangjin Health Industrial Development Co., Ltd. 41, etc.
                                                                                                Securities   Daily B16, Shanghai Securities News
2022-49   2022/6/2    Announcement on Progress in the Provision of External Guarantee
                                                                                                41, etc.
                                                                                                Securities   Daily B71, Shanghai Securities News
2022-50   2022/6/2    Announcement on Distribution of 2022 Annual Equity
                                                                                                52, etc.
                      Announcement on Resolutions of 60th Meeting of the Ninth Board of Securities           Daily B23, Shanghai Securities News
2022-51   2022/6/11
                      Directors                                                                 41, etc.
                                                                                                Securities   Daily B23, Shanghai Securities News
2022-52   2022/6/11   Notice on Convening 2022 Third Extraordinary General Meeting
                                                                                                41, etc.
                      Announcement on Revision of the Articles of Association and other systems Securities   Daily B22, Shanghai Securities News
2022-53   2022/6/11
                      of the Company                                                            41, etc.
                      Announcement on Progress of Guarantee Provision for Wholly-owned Securities            Daily B22, Shanghai Securities News
2022-54   2022/6/18
                      Company                                                                   20, etc.
                      Announcement on Voluntary Information Disclosure for Signing Cooperation Securities    Daily B71, Shanghai Securities News
2022-55   2022/6/25
                      Framework Agreement with Hangzhou Hemai Power Electronics Co., Ltd.       60, etc.
                                                                                                Securities   Daily B57, Shanghai Securities News
2022-56   2022/6/28   Announcement on Resolutions of 2022 Third Extraordinary General Meeting
                                                                                                52, etc.
                      Announcement on Progress in Transfer of 100% of Equity in Xi'an Huasheng Securities    Daily B57, Shanghai Securities News
2022-57   2022/6/28
                      Jiacheng Real Estate Co., Ltd.                                            52, etc.

     XIV Significant Events of Subsidiaries
     □ Applicable √ Not applicable




                                                                         47
Konka Group Co., Ltd.                                                                                                 Interim Report 2022




                   Part VII Share Changes and Shareholder Information

I Share Changes
1. Share Changes
                                                                                                                                Unit: share
                                     Before                  Increase/decrease in the Reporting Period (+/-)                After
                                                                                Shares
                                                                     Shares        as
                                                                        as      dividen
                                                                    dividen         d
                                              Percentag    New           d      convert                                             Percenta
                            Shares                                                         Other      Subtotal     Shares
                                                e (%)     issues    convert        ed                                                ge (%)
                                                                        ed       from
                                                                      from      capital
                                                                     profit     reserve
                                                                                    s
 1. Restricted shares             19,500         0.00%                                       6,500       6,500         26,000         0.00%
 1.3 Shares held by other
                                  19,500         0.00%                                      6,500       6,500          26,000         0.00%
 domestic investors
 Shares held by domestic
                                  19,500         0.00%                                      6,500       6,500          26,000         0.00%
 legal person
 2. Unrestricted shares     2,407,925,908      100.00%                                     -6,500      -6,500    2,407,919,408      100.00%
 2.1 RMB-denominated
                            1,596,574,300       66.31%                                     -6,500      -6,500    1,596,567,800       66.31%
 ordinary shares
 2.2 Domestically listed
                             811,351,608        33.69%                                                            811,351,608        33.69%
 foreign shares
 3. Total shares            2,407,945,408      100.00%                                                           2,407,945,408      100.00%

Reasons for the share changes:
√ Applicable □ Not applicable
During the Reporting Period, Mr. Sun Qingyan resigned as Vice President for personal reasons, and
the 26,000 shares held by him in the Company were locked up within six months upon his
resignation according to the applicable laws and regulations.
Approval of the share changes:
□ 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:

                                                                                                                                               48
Konka Group Co., Ltd.                                                                                                                  Interim Report 2022



□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
                                                                                                                                                Unit: share

                                                            Increase in
                                        Unlocked
                      Beginning                              restricted          Ending
   Name of                                in the                                                                                              Date of
                      restricted                           shares in the        restricted            Reason for restriction
  shareholder                            current                                                                                             unlocking
                        shares                                current             shares
                                         period
                                                               period
                                                                                                 Locked up in full within six           1 September
Sun Qingyan                19,500                   0              6,500             26,000
                                                                                                 months upon his resignation            2022
Total                      19,500                   0              6,500             26,000                       --                             --

II Issuance and Listing of Securities
□ Applicable √ Not applicable
III Shareholders and Their Holdings as at the Period-End
                                                                                                                                                Unit: share
                                                                              Number of preferred shareholders with resumed voting rights (if
 Number of ordinary shareholders                                     85,899
                                                                              any) (see note 8)
                                             5% or greater ordinary shareholders or top 10 ordinary shareholders
                                                                                                                                                 Shares in
                                                                                                                                                  pledge,
                                                                                 Total        Increase/de
                                                                                                                                                 marked or
                                                              Shareholdi       ordinary        crease in       Restricted     Unrestricted
                                             Nature of                                                                                             frozen
        Name of shareholder                                       ng          shares held         the          ordinary        ordinary
                                            shareholder                                                                                                    S
                                                              percentage         at the        Reporting      shares held     shares held
                                                                                                                                                           h
                                                                              period-end        Period                                          Status
                                                                                                                                                           ar
                                                                                                                                                           es
 OVERSEAS CHINESE TOWN                   State-owned
                                                                  21.75%      523,746,932               0               0      523,746,932
 HOLDINGS COMPANY                        legal person
 CITIC SECURITIES
                                         Foreign legal
 BROKERAGE (HONG KONG)                                             7.48%      180,001,110               0               0      180,001,110
                                         person
 CO., LTD.
                                         Domestic
 WANG JINGFENG                                                     4.63%      111,411,100        300,000                0      111,411,100
                                         natural person
 GUOYUAN SECURITIES                      Foreign legal
                                                                   2.46%       59,300,325               0               0       59,300,325
 BROKER (HK) CO., LTD.                   person
                                         Foreign legal
 HOLY TIME GROUP LIMITED                                           2.38%       57,289,100               0               0       57,289,100
                                         person
                                         Foreign legal
 GAOLING FUND,L.P.                                                 2.19%       52,801,250               0               0       52,801,250
                                         person
                                         Foreign natural
 NAM NGAI                                                          0.96%       23,176,840        609,300                0       23,176,840
                                         person
 CHINA MERCHANTS                         State-owned
                                                                   0.81%        19,429,720         115,500                 0     19,429,720
 SECURITIES (HK) LIMITED                 legal person
 BOCOM INTERNATIONAL                     Foreign legal
                                                                   0.78%        18,896,037                0                0     18,896,037
 SECURITIES LIMITED                      person
 HONG KONG SECURITIES
                                          Foreign legal
 CLEARING COMPANY                                                  0.59%        14,142,913       5,431,354                 0     14,142,913
                                          person
 LIMITED
 Strategic investor or general legal person becoming a top-10 ordinary shareholder due to rights issue (if
                                                                                                               N/A
 any) (see note 3)
                                                                      Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
                                                                      majority shareholder Overseas Chinese Town Holdings Company (OCT Group),
                                                                      holds 180,001,110 and 18,360,000 ordinary shares in the Company respectively
 Related or acting-in-concert parties among the shareholders
                                                                      through CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants
 above
                                                                      Securities (HK) Limited. Happy Bloom Investment Limited and OCT Group 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 waiving voting      N/A
 rights
 Special account for share repurchases (if any) among the top 10
                                                                      None
 shareholders (see note 11)
                                                           Top 10 unrestricted ordinary shareholders


                                                                                                                                                              49
Konka Group Co., Ltd.                                                                                                                Interim Report 2022


                                                     Unrestricted ordinary shares held at the                        Shares by type
               Name of shareholder
                                                                   period-end                                    Type                        Shares
 OVERSEAS CHINESE TOWN HOLDINGS
                                                                                  523,746,932    RMB-denominated ordinary stock             523,746,932
 COMPANY
 CITIC SECURITIES BROKERAGE (HONG
                                                                                  180,001,110    Domestically listed foreign stock          180,001,110
 KONG) CO., LTD.
 WANG JINGFENG                                                                    111,411,100    RMB-denominated ordinary stock             111,411,100
 GUOYUAN SECURITIES BROKER (HK)
                                                                                   59,300,325    Domestically listed foreign stock           59,300,325
 CO., LTD.
 HOLY TIME GROUP LIMITED                                                           57,289,100    Domestically listed foreign stock           57,289,100
 GAOLING FUND,L.P.                                                                 52,801,250    Domestically listed foreign stock           52,801,250
 NAM NGAI                                                                          23,176,840    Domestically listed foreign stock           23,176,840
 CHINA MERCHANTS SECURITIES (HK)
                                                                                   19,429,720    Domestically listed foreign stock           19,429,720
 LIMITED
 BOCOM INTERNATIONAL SECURITIES
                                                                                   18,896,037    Domestically listed foreign stock           18,896,037
 LIMITED
 HONG KONG SECURITIES CLEARING
                                                                                   14,142,913    RMB-denominated ordinary stock              14,142,913
 COMPANY LIMITED
                                                   Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first majority
 Related or acting-in-concert parties among top    shareholder Overseas Chinese Town Holdings Company (OCT Group), holds 180,001,110 and
 10 unrestricted ordinary shareholders, as well    18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage (Hong
 as between top 10 unrestricted ordinary           Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment Limited and
 shareholders and top 10 shareholders              OCT Group are parties acting in concert. Other than that, it is unknown whether the other shareholders
                                                   are related parties or acting-in-concert parties or not.
 Top 10 ordinary shareholders involved in          Wang Jingfeng holds 111,411,100 A-shares in the Company through his securities account for customer
 securities margin trading (if any) (see note 4)   credit trading guarantee in Guotai Junan 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 2021 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
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.




                                                                                                                                                        50
Konka Group Co., Ltd.                                       Interim Report 2022




                              Part VIII Preference Shares

□ Applicable √ Not applicable
No Preference shares in the Reporting Period.




                                                                            51
Konka Group Co., Ltd.                                                                                                                Interim Report 2022




                                                             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
                                                                                                                                                Unit: RMB
                                                                                                 Bonds
                                                                                                 balance       Intere                              Trade
        Name              Abbr.     Code        Issue date      Value date       Due date                                 Way of redemption
                                                                                               (RMB’0,00      st rate                             place
                                                                                                    0)
 Privately placed                                                                                                        Interests shall be
                                                                                                                                                  Shenzhe
 corporate bonds in      21                                                                                              paid every year and
                                               8 January       8 January       8 January       1,000,000,0                                        n Stock
 2021 of Konka           Konka    114894                                                                       4.46%     the principals shall
                                               2021            2021            2024                  00.00                                        Exchang
 Group Co., Ltd          01                                                                                              be repaid when
                                                                                                                                                  e
 (Tranche I)                                                                                                             expired.
 Privately placed                                                                                                        Interests shall be
                                                                                                                                                  Shenzhe
 corporate bonds in      21                                                                                              paid every year and
                                               21 May          21 May          21 May           500,000,00                                        n Stock
 2021 of Konka           Konka    133003                                                                       4.00%     the principals shall
                                               2021            2021            2024                   0.00                                        Exchang
 Group Co., Ltd          02                                                                                              be repaid when
                                                                                                                                                  e
 (Tranche II)                                                                                                            expired.
 Privately placed                                                                                                        Interests shall be
                                                                                                                                                  Shenzhe
 corporate bonds in      21                                                                                              paid every year and
                                                                                                800,000,00                                        n Stock
 2021 of Konka           Konka    133040       9 July 2021     9 July 2021     9 July 2024                     3.95%     the principals shall
                                                                                                      0.00                                        Exchang
 Group Co., Ltd          03                                                                                              be repaid when
                                                                                                                                                  e
 (Tranche III)                                                                                                           expired.
 Corporate bonds
 publicly offered to                                                                                                     Interests shall be
                                                                                                                                                  Shenzhe
 professional            22                                                                                              paid every year and
                                               14 July         14 July         14 July         1,200,000,0                                        n Stock
 investors in 2022 of    Konka    149987                                                                       3.23%     the principals shall
                                               2022            2022            2025                  00.00                                        Exchang
 Konka Group Co.,        01                                                                                              be repaid when
                                                                                                                                                  e
 Ltd. (Tranche I)                                                                                                        expired.
 (Variety I)
                                  “21 Konka 01”, “21 Konka 02”, “21 Konka 03” were placed privately to professional investors meeting the requirements
 Appropriate arrangement of       of management method for investors eligibility of Shenzhen Stock Exchange, which not exceeding 200 persons. “22
 the investors (if any)           Konka 01” were offered publicly to professional investors meeting the requirements of management method for
                                  investors eligibility of Shenzhen Stock Exchange.
 Applicable trade mechanism       Click-and-deal, inquire-and-deal, bid-and-deal, and negotiate-and-deal
 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
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

                                                                                                                                                            52
Konka Group Co., Ltd.                                                                       Interim Report 2022



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 2022         31 December 2021         Change
Current ratio                                              116.99%                 88.92%           31.57%
Debt/asset ratio                                            73.59%                 74.42%           -0.83%
Quick ratio                                                 94.24%                 71.36%           32.06%
                                                   H1 2022                H1 2021              Change
Net profit before exceptional gains and losses           -74,235.62            -71,012.46           -4.54%
EBITDA/debt ratio                                            2.74%                  3.19%           -0.45%
Interest cover (times)                                        0.89                   1.15           -22.61%
Cash-to-interest cover (times)                               -0.03                  -1.50           -98.00%
EBITDA-to-interest cover (times)                              1.72                   1.72             0.00%
Debt repayment ratio (%)                                  100.00%                100.00%              0.00%
Interest payment ratio (%)                                100.00%                100.00%              0.00%




                                                                                                               53
Konka Group Co., Ltd.                                                                          Interim Report 2022




                                     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 2022

                                                                                                     Unit: RMB

                             Item                                    30 June 2022          1 January 2022
Current assets:
 Monetary assets                                                        6,534,638,395.86       6,489,553,211.24
 Settlement reserve
 Interbank loans granted
 Held-for-trading financial assets
 Derivative financial assets
 Notes receivable                                                         934,842,104.68       1,777,477,481.28
 Accounts receivable                                                    3,372,628,831.51       3,397,729,481.07
 Accounts receivable financing                                              9,926,723.80          71,490,688.54
 Prepayments                                                              611,349,670.64         631,400,953.86
 Premiums receivable
 Reinsurance receivables
 Receivable reinsurance contract reserve
 Other receivables                                                      1,810,261,803.88       1,837,459,705.64
  Including: Interest receivable                                            3,478,418.99           2,573,082.79
             Dividends receivable
 Financial assets purchased under resale agreements
 Inventories                                                            4,018,041,845.92       4,068,537,809.18
 Contract assets
 Assets held for sale
 Current portion of non-current assets                                     28,493,943.14          28,105,523.78
 Other current assets                                                   3,342,866,416.60       2,299,963,391.24
Total current assets                                                   20,663,049,736.03      20,601,718,245.83
Non-current assets:
 Loans and advances to customers
 Investments in debt obligations
 Investments in other debt obligations
 Long-term receivables                                                     10,430,400.00          18,495,499.14
 Long-term equity investments                                           6,273,716,368.75       5,902,588,939.51
  Investments in other equity instruments                                  23,841,337.16          23,841,337.16
  Other non-current financial assets                                    2,460,095,518.48       2,293,361,603.68
 Investment property                                                      774,860,887.71         776,525,061.54
 Fixed assets                                                           3,960,662,993.10       4,010,295,277.14
 Construction in progress                                               1,781,601,493.64       1,490,777,831.39
 Productive living assets


                                                                                                                  54
Konka Group Co., Ltd.                                                             Interim Report 2022


 Oil and gas assets
 Right-of-use assets                                             69,287,135.98       71,210,415.37
 Intangible assets                                              971,163,382.27      975,295,916.08
 Development costs                                               21,182,267.28       16,870,310.70
 Goodwill                                                        22,196,735.11       22,196,735.11
 Long-term prepaid expense                                      319,234,633.70      297,497,383.39
 Deferred income tax assets                                     855,134,135.28      725,315,725.10
 Other non-current assets                                     1,106,273,348.06    2,648,530,490.12
Total non-current assets                                     18,649,680,636.52   19,272,802,525.43
Total assets                                                 39,312,730,372.55   39,874,520,771.26
Current liabilities:
 Short-term borrowings                                       10,090,194,886.59    9,920,675,121.08
 Borrowings from the central bank
 Interbank loans obtained
  Held-for-trading financial liabilities
 Derivative financial liabilities
 Notes payable                                                1,133,188,165.45    1,116,336,958.91
 Accounts payable                                             2,643,426,810.42    3,784,315,091.41
 Advances from customers
 Contract liabilities                                          711,366,769.35      652,910,408.02
 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                                      181,829,820.35      410,747,084.80
 Taxes payable                                                  275,168,869.12      295,825,170.41
 Other payables                                               1,392,145,413.87    1,788,177,748.59
  Including: Interest payable                                    88,023,792.80      174,383,177.08
             Dividends payable
 Handling charges and commissions payable
 Reinsurance payables
 Liabilities directly associated with assets held for sale
 Current portion of non-current liabilities                   1,071,913,219.84    5,089,586,269.32
 Other current liabilities                                      162,378,254.97      109,742,188.24
Total current liabilities                                    17,661,612,209.96   23,168,316,040.78
Non-current liabilities:
 Insurance contract reserve
 Long-term borrowings                                         8,245,446,057.26    3,529,140,539.09
 Bonds payable                                                2,295,579,140.50    2,293,698,899.30
  Including: Preferred shares
Perpetual bonds
 Lease liabilities                                               51,616,953.84       42,532,869.63
 Long-term payables                                             136,400,514.66      140,687,570.78
 Long-term employee benefits payable                              5,029,726.81        5,111,296.75
 Provisions                                                     106,354,249.82      106,276,535.85
 Deferred income                                                262,481,408.60      206,302,424.92
 Deferred income tax liabilities                                 79,178,233.81       76,894,581.97
 Other non-current liabilities                                   85,210,503.30      104,610,663.76
Total non-current liabilities                                11,267,296,788.60    6,505,255,382.05
Total liabilities                                            28,928,908,998.56   29,673,571,422.83
Owners’ equity:
 Share capital                                                2,407,945,408.00    2,407,945,408.00
 Other equity instruments
  Including: Preferred shares
Perpetual bonds
 Capital reserves                                              366,832,114.89      234,389,963.10


                                                                                                     55
Konka Group Co., Ltd.                                                                          Interim Report 2022


 Less: Treasury stock
 Other comprehensive income                                               -17,046,757.46         -20,336,087.87
 Specific reserve
 Surplus reserves                                                       1,244,180,364.24       1,244,180,364.24
 General reserve
 Retained earnings                                                      5,281,519,957.37       5,229,098,788.94
Total equity attributable to owners of the Company as the parent        9,283,431,087.04       9,095,278,436.41
Non-controlling interests                                               1,100,390,286.95       1,105,670,912.02
Total owners’ equity                                                  10,383,821,373.99      10,200,949,348.43
Total liabilities and owners’ equity                                  39,312,730,372.55      39,874,520,771.26
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 2022          1 January 2022
Current assets:
 Monetary assets                                                        4,817,401,116.88       4,809,203,282.52
 Held-for-trading financial assets
 Derivative financial assets
 Notes receivable                                                         323,066,626.61         912,584,879.70
 Accounts receivable                                                    5,580,066,984.48       4,468,684,877.11
 Accounts receivable financing                                                                     6,250,000.00
 Prepayments                                                            1,392,618,920.86       1,617,640,913.05
 Other receivables                                                     10,250,972,249.22      10,925,066,231.53
  Including: Interest receivable                                            2,907,863.11           2,002,526.91
              Dividends receivable                                        388,722,154.83         383,943,256.80
 Inventories                                                              235,132,046.82         192,035,723.31
 Contract assets
 Assets held for sale
 Current portion of non-current assets
 Other current assets                                                   1,722,570,208.46       1,736,172,492.35
Total current assets                                                   24,321,828,153.33      24,667,638,399.57
Non-current assets:
 Investments in debt obligations
 Investments in other debt obligations
 Long-term receivables
 Long-term equity investments                                           8,925,016,873.83       8,633,142,223.64
  Investments in other equity instruments                                  17,940,215.36          17,940,215.36
  Other non-current financial assets                                      200,326,093.02         200,326,093.02
 Investment property                                                      447,656,127.44         455,475,442.43
 Fixed assets                                                             393,714,561.09         398,611,899.13
 Construction in progress                                                 335,371,763.94         304,489,347.00
 Productive living assets
 Oil and gas assets
 Right-of-use assets                                                        2,682,250.80           4,023,376.21
 Intangible assets                                                         66,088,328.80          55,814,854.54
 Development costs
 Goodwill
 Long-term prepaid expense                                                 31,219,743.56          31,718,868.00
 Deferred income tax assets                                               792,018,584.35         711,814,124.48
 Other non-current assets
Total non-current assets                                               11,212,034,542.19      10,813,356,443.81
Total assets                                                           35,533,862,695.52      35,480,994,843.38
Current liabilities:


                                                                                                                  56
Konka Group Co., Ltd.                                                             Interim Report 2022


 Short-term borrowings                                        3,838,087,799.15    4,259,749,597.92
  Held-for-trading financial liabilities
 Derivative financial liabilities
 Notes payable                                                  673,466,004.28    1,126,421,923.99
 Accounts payable                                             8,982,213,162.58    8,297,778,584.91
 Advances from customers
 Contract liabilities                                           656,157,473.78      740,817,658.30
 Employee benefits payable                                       47,155,667.20      128,148,938.08
 Taxes payable                                                    4,356,902.37        8,022,098.02
 Other payables                                               4,011,175,314.75    4,155,006,946.60
  Including: Interest payable                                    87,444,401.92      171,516,416.71
               Dividends payable
 Liabilities directly associated with assets held for sale
 Current portion of non-current liabilities                     863,147,551.20    4,715,415,917.78
 Other current liabilities                                       11,067,091.64       11,124,209.72
Total current liabilities                                    19,086,826,966.95   23,442,485,875.32
Non-current liabilities:
 Long-term borrowings                                         7,748,347,100.29    3,161,298,604.12
 Bonds payable                                                2,295,579,140.50    2,293,698,899.30
  Including: Preferred shares
Perpetual bonds
 Lease liabilities                                                 481,296.00         1,664,232.11
 Long-term payables
 Long-term employee benefits payable
 Provisions                                                        680,462.71           572,097.48
 Deferred income                                                34,128,189.15        36,243,964.61
 Deferred income tax liabilities
 Other non-current liabilities                                   10,255,577.23       43,677,187.49
Total non-current liabilities                                10,089,471,765.88    5,537,154,985.11
Total liabilities                                            29,176,298,732.83   28,979,640,860.43
Owners’ equity:
 Share capital                                                2,407,945,408.00    2,407,945,408.00
 Other equity instruments
  Including: Preferred shares
Perpetual bonds
 Capital reserves                                              243,139,144.39      110,696,992.60
 Less: Treasury stock
 Other comprehensive income                                      -1,500,000.00       -1,500,000.00
 Specific reserve
 Surplus reserves                                             1,260,024,039.76    1,260,024,039.76
 Retained earnings                                            2,447,955,370.54    2,724,187,542.59
Total owners’ equity                                         6,357,563,962.69    6,501,353,982.95
Total liabilities and owners’ equity                        35,533,862,695.52   35,480,994,843.38

3. Consolidated Income Statement
                                                                                        Unit: RMB
                             Item                            H1 2022             H1 2021
1. Revenue                                                   16,895,470,276.81   21,810,161,873.08
Including: Operating revenue                                 16,895,470,276.81   21,810,161,873.08
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses                                        17,954,723,815.95   22,632,427,029.23
Including: Cost of sales                                     16,482,440,621.84   20,817,175,713.78
Interest expense
Handling charge and commission expense
Surrenders

                                                                                                     57
Konka Group Co., Ltd.                                                                     Interim Report 2022


Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges                                                     53,284,971.18      44,456,361.94
Selling expense                                                         560,225,684.28     667,662,036.47
Administrative expense                                                  354,308,684.51     359,053,667.07
R&D expense                                                             237,348,526.56     284,663,467.26
Finance costs                                                           267,115,327.58     459,415,782.71
Including: Interest expense                                             465,576,348.06     488,330,464.76
              Interest income                                           109,353,054.39      78,303,181.42
Add: Other income                                                       343,737,322.91     720,696,356.02
      Return on investment (“-” for loss)                             737,803,536.05     322,244,312.89
Including: Share of profit or loss of joint ventures and associates      59,402,481.72      19,335,816.88
  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)                              -638,799.36     40,362,513.73
Credit impairment loss (“-” for loss)                                  -78,608,313.56    -71,392,178.06
Asset impairment loss (“-” for loss)                                   -13,309,988.75    -29,538,732.82
Asset disposal income (“-” for loss)                                    12,782,328.52         88,668.35
3. Operating profit (“-” for loss)                                     -57,487,453.33    160,195,783.96
Add: Non-operating income                                                 30,492,741.65     21,618,277.79
Less: Non-operating expense                                                3,860,945.80      6,793,873.14
4. Profit before tax (“-” for loss)                                    -30,855,657.48    175,020,188.61
Less: Income tax expense                                                 -88,858,864.36     84,263,268.37
5. Net profit (“-” for net loss)                                        58,003,206.88     90,756,920.24
  5.1 By operating continuity
   5.1.1 Net profit from continuing operations (“-” for net loss)      58,003,206.88      90,756,920.24
   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 the
                                                                        172,818,438.83      85,449,919.57
parent
5.2.1 Net profit attributable to non-controlling interests              -114,815,231.95       5,307,000.67
6. Other comprehensive income, net of tax                                  4,109,281.36      -1,547,270.99
Attributable to owners of the Company as the parent                        3,289,330.41        -583,043.66
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                      3,289,330.41       -583,043.66
6.2.1 Other comprehensive income that will be reclassified to
                                                                             -38,929.34      1,486,086.18
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 currency-
                                                                           3,328,259.75      -2,069,129.84
denominated financial statements
6.2.7 Other

                                                                                                             58
Konka Group Co., Ltd.                                                                      Interim Report 2022


Attributable to non-controlling interests                                    819,950.95         -964,227.33
7. Total comprehensive income                                             62,112,488.24       89,209,649.25
Attributable to owners of the Company as the parent                      176,107,769.24       84,866,875.91
Attributable to non-controlling interests                               -113,995,281.00        4,342,773.34
8. Earnings per share
8.1 Basic earnings per share                                                    0.0718              0.0355
8.2 Diluted earnings per share                                                  0.0718              0.0355
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 2022             H1 2021
1. Operating revenue                                                    937,174,806.46     1,201,381,406.70
Less: Cost of sales                                                     955,576,781.51     1,079,261,558.34
Taxes and surcharges                                                       4,788,176.20        2,722,585.37
Selling expense                                                         126,864,858.90       153,803,101.46
Administrative expense                                                  112,153,504.59       129,288,020.36
R&D expense                                                               51,468,275.26       21,919,059.86
Finance costs                                                           162,133,403.85       185,312,072.03
Including: Interest expense                                             431,671,720.01       395,636,089.83
              Interest income                                           175,006,649.97       249,552,400.35
Add: Other income                                                         16,852,496.81       31,506,992.96
Return on investment (“-” for loss)                                   231,113,070.86       196,794,318.43
Including: Share of profit or loss of joint ventures and associates       76,488,083.68        6,396,453.37
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)                                  -23,046,305.82      -86,149,702.67
Asset impairment loss (“-” for loss)                                    -4,024,458.06       -2,818,595.77
Asset disposal income (“-” for loss)                                     6,069,332.66
2. Operating profit (“-” for loss)                                    -248,846,057.40     -229,935,331.93
Add: Non-operating income                                                 13,060,831.55        4,699,664.41
Less: Non-operating expense                                                  254,158.77        5,616,310.83
3. Profit before tax (“-” for loss)                                   -236,039,384.62     -230,851,978.35
Less: Income tax expense                                                 -80,204,459.87      -59,671,308.58
4. Net profit (“-” for net loss)                                      -155,834,924.75     -171,180,669.77
  4.1 Net profit from continuing operations (“-” for net loss)        -155,834,924.75     -171,180,669.77
  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
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 to
                                                                                               1,486,086.18
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


                                                                                                              59
Konka Group Co., Ltd.                                                                      Interim Report 2022


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 currency-
                                                                                                -303,868.87
denominated financial statements
5.2.7 Other
6. Total comprehensive income                                           -155,834,924.75     -169,998,452.46
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 2022             H1 2021
1. Cash flows from operating activities:
 Proceeds from sale of commodities and rendering of services          16,657,583,444.03   20,963,019,142.28
 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                                                             280,376,794.53      259,574,846.93
 Cash generated from other operating activities                          753,959,635.59      984,633,539.35
 Subtotal of cash generated from operating activities                 17,691,919,874.15   22,207,227,528.56
 Payments for commodities and services                                15,956,086,181.59   20,801,856,591.59
 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                                        1,001,094,352.68    1,040,180,023.02
 Taxes paid                                                              272,856,476.27      571,610,951.43
 Cash used in other operating activities                                 883,142,370.34    1,078,341,184.55
 Subtotal of cash used in operating activities                        18,113,179,380.88   23,491,988,750.59
 Net cash generated from/used in operating activities                   -421,259,506.73   -1,284,761,222.03
2. Cash flows from investing activities:
 Proceeds from disinvestment                                            311,914,738.68      242,490,592.58
 Return on investment                                                    66,252,680.29       79,850,437.97
 Net proceeds from the disposal of fixed assets, intangible assets
                                                                            823,875.00      233,374,028.57
and other long-lived assets
 Net proceeds from the disposal of subsidiaries and other
                                                                        297,094,350.04      133,143,680.12
business units
 Cash generated from other investing activities                        2,385,626,424.39      726,997,513.51
 Subtotal of cash generated from investing activities                  3,061,712,068.40    1,415,856,252.75
 Payments for the acquisition of fixed assets, intangible assets
                                                                       2,368,866,405.13    2,434,111,266.54
and other long-lived assets
 Payments for investments                                               281,204,526.06      334,832,168.49
 Net increase in pledged loans granted
 Net payments for the acquisition of subsidiaries and other
                                                                                             96,500,000.00
business units
 Cash used in other investing activities                                 297,319,897.73      335,799,856.00
 Subtotal of cash used in investing activities                         2,947,390,828.92    3,201,243,291.03

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Konka Group Co., Ltd.                                                                      Interim Report 2022


 Net cash generated from/used in investing activities                  114,321,239.48     -1,785,387,038.28
3. Cash flows from financing activities:
Capital contributions received                                          73,710,000.00        82,672,396.60
Including: Capital contributions by non-controlling interests to
                                                                        73,710,000.00        82,672,396.60
subsidiaries
Borrowings raised                                                    13,247,484,343.89    11,408,374,380.36
Cash generated from other financing activities                           98,773,506.85       595,358,784.49
Subtotal of cash generated from financing activities                 13,419,967,850.74    12,086,405,561.45
Repayment of borrowings                                              12,164,709,671.44     7,054,124,522.30
Interest and dividends paid                                             629,096,420.22       612,510,498.19
Including: Dividends paid by subsidiaries to non-controlling
                                                                                               7,497,000.00
interests
Cash used in other financing activities                                 413,488,589.33       480,205,100.51
Subtotal of cash used in financing activities                        13,207,294,680.99     8,146,840,121.00
Net cash generated from/used in financing activities                    212,673,169.75     3,939,565,440.45
4. Effect of foreign exchange rates changes on cash and cash
                                                                        29,437,680.94         -7,488,067.32
equivalents
5. Net increase in cash and cash equivalents                            -64,827,416.56       861,929,112.82
Add: Cash and cash equivalents, beginning of the period               5,968,347,219.03     4,298,056,113.24
6. Cash and cash equivalents, end of the period                       5,903,519,802.47     5,159,985,226.06

6. Cash Flow Statement of the Company as the Parent
                                                                                                Unit: RMB
                               Item                                  H1 2022              H1 2021
1. Cash flows from operating activities:
 Proceeds from sale of commodities and rendering of services          2,354,844,176.86     1,579,711,912.72
 Tax rebates                                                             86,941,251.18       125,466,130.99
 Cash generated from other operating activities                          97,266,687.71       253,268,585.04
 Subtotal of cash generated from operating activities                 2,539,052,115.75     1,958,446,628.75
 Payments for commodities and services                                2,958,268,595.49     2,203,917,150.41
 Cash paid to and for employees                                         177,343,007.79       186,615,478.74
 Taxes paid                                                               8,874,050.17         5,362,665.96
 Cash used in other operating activities                                570,856,154.42       315,831,641.28
 Subtotal of cash used in operating activities                        3,715,341,807.87     2,711,726,936.39
 Net cash generated from/used in operating activities                -1,176,289,692.12      -753,280,307.64
2. Cash flows from investing activities:
 Proceeds from disinvestment                                           243,681,401.96       336,545,500.00
 Return on investment                                                    9,191,193.60         7,738,365.75
 Net proceeds from the disposal of fixed assets, intangible assets
                                                                               2,335.00         208,313.77
and other long-lived assets
 Net proceeds from the disposal of subsidiaries and other business
units
 Cash generated from other investing activities                       4,144,985,356.98     3,061,287,812.44
 Subtotal of cash generated from investing activities                 4,397,860,287.54     3,405,779,991.96
 Payments for the acquisition of fixed assets, intangible assets
                                                                       113,204,917.61       100,219,361.16
and other long-lived assets
 Payments for investments                                              181,192,000.00       416,340,000.00
 Net payments for the acquisition of subsidiaries and other
business units
 Cash used in other investing activities                              3,667,215,872.05     3,653,620,787.61
 Subtotal of cash used in investing activities                        3,961,612,789.66     4,170,180,148.77
 Net cash generated from/used in investing activities                   436,247,497.88      -764,400,156.81
3. Cash flows from financing activities:
 Capital contributions received
 Borrowings raised                                                   11,015,317,707.33     7,831,733,994.04
 Cash generated from other financing activities                       6,900,804,389.29     4,872,687,703.97
 Subtotal of cash generated from financing activities                17,916,122,096.62    12,704,421,698.01
 Repayment of borrowings                                              9,787,500,000.00     5,460,556,762.28
 Interest and dividends paid                                            569,130,713.71       555,580,595.63


                                                                                                              61
Konka Group Co., Ltd.                                                               Interim Report 2022


 Cash used in other financing activities                        6,871,379,554.34    5,048,804,238.24
 Subtotal of cash used in financing activities                 17,228,010,268.05   11,064,941,596.15
 Net cash generated from/used in financing activities             688,111,828.57    1,639,480,101.86
4. Effect of foreign exchange rates changes on cash and cash
                                                                      41,903.92          -524,306.83
equivalents
5. Net increase in cash and cash equivalents                      -51,888,461.75      121,275,330.58
Add: Cash and cash equivalents, beginning of the period         4,682,608,814.76    2,910,762,592.99
6. Cash and cash equivalents, end of the period                 4,630,720,353.01    3,032,037,923.57




                                                                                                       62
                                                                                            Konka Group Co., Ltd.                                                                                                                 Interim Report 2022

               7. Consolidated Statements of Changes in Owners’ Equity
               H1 2022                                                                                                                                                                                                                    Unit: RMB
                                                                                                                                                          H1 2022
                                                                                                      Equity attributable to owners of the Company as the parent
                                                        Other equity instruments                      Less:                            Spe                        Gen
                  Item                                                                                                 Other                                                                  Ot                      Non-controlling
                                             Share      Prefer    Perpet                              Treas                            cific                       eral                                                                     Total owners’ equity
                                                                             Oth   Capital reserves               comprehensive                Surplus reserves           Retained earnings   he     Subtotal            interests
                                             capital     red        ual                                ury                             rese                       reser
                                                                             er                                       income                                                                   r
                                                        shares    bonds                               stock                             rve                         ve
1. Balance as at the end of the period       2,407,94
                                                                                    234,389,963.10                -20,336,087.87             1,244,180,364.24              5,229,098,788.94        9,095,278,436.41    1,105,670,912.02         10,200,949,348.43
of prior year                                5,408.00
Add: Adjustment for change in
accounting policy
  Adjustment for correction of previous
error
  Adjustment for business combination
under common control
  Other adjustments
2. Balance as at the beginning of the        2,407,94
                                                                                    234,389,963.10                -20,336,087.87             1,244,180,364.24              5,229,098,788.94        9,095,278,436.41    1,105,670,912.02         10,200,949,348.43
Reporting Period                             5,408.00
3. Increase/ decrease in the period (“-”
                                                                                    132,442,151.79                  3,289,330.41                                              52,421,168.43         188,152,650.63        -5,280,625.07            182,872,025.56
for decrease)
  3.1 Total comprehensive income                                                                                    3,289,330.41                                             172,818,438.83         176,107,769.24      -113,995,281.00             62,112,488.24
  3.2 Capital increased and reduced by
                                                                                    132,442,151.79                                                                                                  132,442,151.79       109,449,655.93            241,891,807.72
owners
3.2.1 Ordinary shares increased by
                                                                                                                                                                                                                          73,710,000.00             73,710,000.00
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                                                                         132,442,151.79                                                                                                  132,442,151.79        35,739,655.93            168,181,807.72
 3.3 Profit distribution                                                                                                                                                    -120,397,270.40        -120,397,270.40          -735,000.00           -121,132,270.40
   3.3.1 Appropriation to surplus
reserves
   3.3.2 Appropriation to general
reserve
   3.3.3 Appropriation to owners (or
                                                                                                                                                                            -120,397,270.40        -120,397,270.40          -735,000.00           -121,132,270.40
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              2,407,94
                                                                                    366,832,114.89                -17,046,757.46             1,244,180,364.24              5,281,519,957.37        9,283,431,087.04    1,100,390,286.95         10,383,821,373.99
Reporting Period                             5,408.00


                                                                                                                                                                                                                                                        63
                                                                                           Konka Group Co., Ltd.                                                                                                                     Interim Report 2022
              H1 2021
                                                                                                                                                                                                                                               Unit: RMB
                                                                                                                                                        H1 2021
                                                                                                       Equity attributable to owners of the Company as the parent
                                                          Other equity instruments
                  Item                                                                                Less:         Other           Specifi                                                                                 Non-controlling
                                              Share                  Perpet             Capital                                                                     General                       Othe                                         Total owners’ equity
                                                         Preferre              Oth                   Treasur    comprehensive          c        Surplus reserves              Retained earnings             Subtotal           interests
                                              capital                  ual             reserves                                                                     reserve                        r
                                                         d shares               er                   y stock       income           reserve
                                                                     bonds
1. Balance as at the end of the period       2,407,945                               230,185,310.0
                                                                                                                 -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
of prior year                                  ,408.00                                           9
Add: Adjustment for change in
accounting policy
  Adjustment for correction of
previous error
  Adjustment for business combination
under common control
  Other adjustments
2. Balance as at the beginning of the        2,407,945                               230,185,310.0
                                                                                                                 -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
Reporting Period                               ,408.00                                           9
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 income                                                                                    -583,043.66                                                  85,449,919.57             84,866,875.91        4,342,773.34          89,209,649.25
  3.2 Capital increased and reduced by
                                                                                      4,030,393.82                                                                                                           4,030,393.82     20,522,828.66           24,553,222.48
owners
3.2.1 Ordinary shares increased by
                                                                                                                                                                                                                              12,701,396.58           12,701,396.58
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
   3.3.3 Appropriation to owners (or
                                                                                                                                                                               -240,794,540.80           -240,794,540.80                            -240,794,540.80
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                               234,215,703.9
                                                                                                                 -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                               ,408.00                                           1

                                                                                                                                                                                                                                                           64
                                                                                           Konka Group Co., Ltd.                                                                                                                         Interim Report 2022

               8. Statements of Changes in Owners’ Equity of the Company as the Parent
               H1 2022
                                                                                                                                                                                                                                                   Unit: RMB
                                                                                                                                                            H1 2022
                                                                                Other equity instruments                                                           Other
                     Item                                                                                                                  Less: Treasury                        Specific                                                   Othe
                                                  Share capital           Preferred     Perpetua                     Capital reserves                          comprehensive                     Surplus reserves    Retained earnings              Total owners’ equity
                                                                                                        Other                                  stock                             reserve                                                     r
                                                                           shares        l bonds                                                                  income
1. Balance as at the end of the period of
                                                   2,407,945,408.00                                                     110,696,992.60                           -1,500,000.00                    1,260,024,039.76      2,724,187,542.59               6,501,353,982.95
prior year
Add: Adjustment for change in accounting
policy
  Adjustment for correction of previous
error
  Other adjustments                                                                                                                                                                                                                23.10                           23.10
2. Balance as at the beginning of the
                                                   2,407,945,408.00                                                     110,696,992.60                           -1,500,000.00                    1,260,024,039.76      2,724,187,565.69               6,501,354,006.05
Reporting Period
3. Increase/ decrease in the period (“-” for
                                                                                                                        132,442,151.79                                                                                   -276,232,195.15                -143,790,043.36
decrease)
  3.1 Total comprehensive income                                                                                                                                                                                         -155,834,924.75                -155,834,924.75
  3.2 Capital increased and reduced by
                                                                                                                        132,442,151.79                                                                                                                   132,442,151.79
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                                                                                                             132,442,151.79                                                                                                                   132,442,151.79
  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
                                                                                                                                                                                                                         -120,397,270.40                -120,397,270.40
shareholders)
   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
                                                   2,407,945,408.00                                                     243,139,144.39                           -1,500,000.00               -    1,260,024,039.76      2,447,955,370.54               6,357,563,962.69
Period

               H1 2021
                                                                                                                                                                                                                                                   Unit: RMB
                                                                                                                                                               H1 2021
                            Item                                                     Other equity instruments                                   Less:              Other          Specific
                                                          Share capital                                                 Capital reserves                                                         Surplus reserves    Retained earnings     Other    Total owners’ equity
                                                                               Preferred     Perpetual       Other                             Treasury        comprehensive      reserve

                                                                                                                                                                                                                                                             65
                                                                                       Konka Group Co., Ltd.                                                                                  Interim Report 2022
                                                                              shares     bonds                                  stock    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 Period     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
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
   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




                                                                                                                                                                                                               66
Konka Group Co., Ltd.                                                              Interim Report 2022



I. Company Profile

1. Establishment
Konka Group Co., Ltd. (hereinafter referred to as “Company” or “the Company” and the “Group”
when including subsidiaries), 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 2022, 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 Group was mainly engaged in the production and sales of colour TVs, white goods, etc.; as
well as the operation of 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 23 August 2022.

II. Consolidation scope
The Company has a total of 115 subsidiaries included in the consolidation scope including
Shenzhen Konka Electronics Technology Co., Ltd., Anhui Konka Electronic Co., Ltd. and
Dongguan Konka Electronic Co., Ltd. The consolidation scope of the Company for the Reporting
Period increased by 5 households including Jiangxi Konka High-tech Park Operation and
Management Co., Ltd., Shangrao Konka Electronic Technology Innovation Co., Ltd. and
Guizhou Konka New Energy Material Technology Co., Ltd. and decreased by 10 households
including Xi'an Huasheng Jiacheng Real Estate Co., Ltd. and Shanghai Xinfeng Zhuoqun PCB
Co., Ltd. due to losing control or cancellation compared to the same period of last 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      Shenzhen Konka Electronics Technology Co., Ltd.           Electronics Technology



                                                     67
Konka Group Co., Ltd.                                                                     Interim Report 2022



    No.                               Corporate name                                    Abbreviation

     2      Anhui Konka Zhilian E-Commerce Co., Ltd.                        Anhui Zhilian

     3      Haimen Konka Smart Technology Co., Ltd.                         Haimen Konka

     4      Chengdu Konka Smart Technology Co., Ltd.                        Chengdu Konka Smart

     5      Chengdu Konka Electronic Co., Ltd.                              Chengdu Konka Electronic

     6      Nantong Hongdin Smart Technology Co., Ltd.                      Nantong Hongdin

     7      Shenzhen Youzhihui Technology Co., Ltd.                         Youzhihui

     8      Xiaojia Technology Co., Ltd.                                    Xiaojia Technology

     9      Liaoyang Kangshun Smart Technology Co., Ltd.                    Liaoyang Kangshun Smart

    10      Liaoyang Kangshun Renewable Resources Co., Ltd.                 Liaoyang Kangshun Renewable

    11      Nanjing Konka Electronics Co., Ltd.                             Nanjing Konka

            Chuzhou Konka Precision Intelligent Manufacturing Technology Co., Chuzhou Konka
    12
            Ltd.

    13      Xi'an Huasheng Jiacheng Real Estate Co., Ltd.                   Xi'an Huasheng

    14      GuangDong XingDa HongYe Electronic Co., Ltd.                    XingDa HongYe

    15      Shanghai Xinfeng Zhuoqun PCB Co., Ltd.                          Shanghai Xinfeng

    16      Shenzhen Konka Circuit Co., Ltd.                                Konka Circuit

            Suining Konka Flexible Electronic Technology Co., Ltd.          Konka Flexible Electronic
    17
            Suining Konka Hongye Electronics Co., Ltd.                      Konka Hongye Electronics
    18

    19      Boluo Konka Precision Technology Co., Ltd.                      Boluo Precision

    20      Boluo Konka PCB Co., Ltd.                                       Boluo Konka

    21      Anhui Konka Tongchuang Electrical Appliances Co., Ltd.          Anhui Tongchuang

    22      Jiangsu Konka Smart Electrical Appliances Co., Ltd.             Jiangsu Konka Smart

    23      Anhui Konka Electrical Appliance Technology Co., Ltd.           Anhui Electrical Appliance

    24      Henan Frestec Refrigeration Appliance Co., Ltd.                 Frestec Refrigeration

    25      Henan Frestec Electrical Appliances Co., Ltd.                   Frestec Electrical Appliances

    26      Henan Frestec Household Appliances Co., Ltd.                    Frestec Household Appliances

    27      Henan Frestec Smart Home Technology Co., Ltd.                   Frestec Smart Home

    28      Shenzhen Konka Investment Holdings Co., Ltd.                    Konka Investment



                                                         68
Konka Group Co., Ltd.                                                                      Interim Report 2022



    No.                               Corporate name                                   Abbreviation

    29      Yibin Konka Technology Park Operation Co., Ltd.                 Yibin Konka Technology Park

    30      Shenzhen Konka Capital Equity Investment Management Co., Ltd.   Konka Capital

    31      Konka Suiyong Investment (Shenzhen) Co., Ltd.                   Konka Suiyong

    32      Shenzhen Konka Shengxing Industrial Co., Ltd.                   Shengxing Industrial

    33      Shenzhen Konka Zhitong Technology Co., Ltd.                     Zhitong Technology

    34      Konka Factoring (Shenzhen) Co., Ltd.                            Konka Factoring

    35      Beijing Konka Electronic Co., Ltd.                              Beijing Konka Electronic

    36      Konka Financial Leasing (Tianjin) Co., Ltd.                     Konka Leasing

    37      Suining Konka Industrial Park Development Co., Ltd.             Suining Konka Industrial Park

                                                                            Suining Electronic Technological
    38      Suining Konka Electronic Technological Innovation Co., Ltd.
                                                                            Innovation

    39      Shanghai Konka Industrial Co., Ltd.                             Shanghai Konka

    40      Yantai Kangjin Technology Development Co., Ltd.                 Yantai Kangjin

    41      Shenzhen Konka Mobile Interconnection Technology Co., Ltd.      Mobile Interconnection

    42      Sichuan Konka Smart Terminal Technology Co., Ltd                Sichuan Konka

    43      Yibin Konka Smart Technology Co., Ltd.                          Yibin Smart

    44      Shenzhen KONSEMI Co., Ltd.                                      Shenzhen KONSEMI

    45      Chongqing Konka Technology Development Co., Ltd.                Chongqing Konka

    46      Hefei KONSEMI Storage Technology Co., Ltd.                      Hefei KONSEMI

    47      Hefei Yihe Electronic Co., Ltd.                                 Yihe Electronic

    48      Kowin Memory Technology (Shenzhen) Co., Limited                 Kowin Memory (Shenzhen)

    49      Kowin Memory Technology (Hong Kong) Co., Limited                Kowin Memory (Hong Kong)

    50      Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd.      Konka Xinyun Semiconductor

    51      Konka Industrial and Trade Technology (Shenzhen) Co., Ltd.      Industrial and Trade Technology

    52      Shenzhen Nianhua Enterprise Management Co., Ltd.                Shenzhen Nianhua

    53      Konka Huazhong (Hunan) Technology Co., Ltd.                     Konka Huazhong

    54      Shenzhen Wankaida Science and Technology Co., Ltd.              Wankaida

                                                                            Shenzhen      Chuangzhi    Electrical
    55      Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
                                                                            Appliances

                                                          69
Konka Group Co., Ltd.                                                                         Interim Report 2022



    No.                               Corporate name                                        Abbreviation

    56      Suining Jiarun Property Co., Ltd.                                  Suining Jiarun Property

    57      Anhui Konka Electronic Co., Ltd.                                   Anhui Konka


    58      Anhui Kangzhi Trade Co., Ltd.                                      Kangzhi Trade

    59      Shenzhen Konka Telecommunications Technology Co., Ltd.             Telecommunication Technology

    60      Konka Mobility Co., Limited                                        Konka Mobility

    61      Dongguan Konka Electronic Co., Ltd.                                Dongguan Konka

    62      Suining Konka Smart Technology Co., Ltd.                           Suining Konka Smart

            Chongqing Konka Optoelectronic Technology Research Institute Co.,Chongqing               Optoelectronic
    63
            Ltd.                                                               Technology Research Institute

    64      Yibin Kangrun Environmental Technology Co., Ltd.                   Yibin Kangrun

    65      Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd.        Yibin Kangrun Medical

            Yibin Kangrun Environmental Protection Power Generation Co., Ltd. Yibin     Kangrun      Environmental
    66
                                                                               Protection

    67      Ningbo Khr Electric Appliance Co., Ltd.                            Ningbo Khr Electric Appliance

    68      Jiangxi Konka New Material Technology Co., Ltd.                    Jiangxi Konka

    69      Jiangxi High Transparent Substrate Material Technology Co., Ltd.   Jiangxi High Transparent Substrate

    70      Jiangsu Konka Special Material Technology Co., Ltd.                Jiangsu Konka Special Material

    71      Jiangxi Xinfeng Microcrystalline Jade Co., Ltd.                    Xinfeng Microcrystalline

    72      Konka Huanjia Environmental Technology Co., Ltd.                   Konka Huanjia

    73      Konka Huanjia (Henan) Environmental Technology Co., Ltd.           Konka Huanjia (Henan)

    74      Shaanxi Konka Intelligent Appliance Co., Ltd.                      Shaanxi Konka Intelligent

    75      Shenzhen Konka Pengrun Technology & Industry Co., Ltd.             Pengrun Technology

    76      Jiaxin Technology Co., Ltd.                                        Jiaxin Technology

    77      Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd.            Konka Ronghe

    78      Chongqing Kangxingrui Environmental Technology Co., Ltd.           Chongqing Kangxingrui

            Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd.       Chongqing               Kangxingrui
    79
                                                                               Automobile Recycling

    80      Shenzhen Konka Unifortune Technology Co., Ltd.                     Konka Unifortune

    81      Jiali International (Hong Kong) Limited                            Jiali International


                                                        70
Konka Group Co., Ltd.                                                                       Interim Report 2022



    No.                                Corporate name                                  Abbreviation

    82      Sichuan Kangjiatong Technology Co., Ltd.                         Kangjiatong

    83      Kanghong (Yantai) Environmental Technology Co., Ltd.             Kanghong (Yantai) Environmental

    84      Jiangkang (Shanghai) Technology Co., Ltd.                        Jiangkang (Shanghai) Technology

    85      Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd.    Konka Intelligent Manufacturing

    86      Yantai Laikang Industrial Development Co., Ltd.                  Yantai Laikang

    87      Hainan Konka Material Technology Co., Ltd.                       Konka Material

    88      Konka Ventures Development (Shenzhen) Co., Ltd.                  Konka Ventures

    89      Yibin Konka Incubator Management Co., Ltd.                       Yibin Konka Incubator

    90      Yantai Konka Healthcare Enterprise Service Co., Ltd.             Yantai Konka

            Chengdu Anren Konka Cultural and Creative Incubator Management
    91                                                                       Chengdu Anren
            Co., Ltd.

    92      Guiyang Konka Enterprise Service Co., Ltd.                       Konka Enterprise Service

    93      Shenzhen Konka Eco-Development Investment Co., Ltd.              Konka Eco-Development

    94      Konka (Europe) Co., Ltd.                                         Konka Europe

    95      Hong Kong Konka Limited                                          Hong Kong Konka

    96      Hongdin International Trading Limited                            Hongdin Trading

    97      Konka North America LLC                                          Konka North America

    98      Kanghao Technology Co., Ltd.                                     Kanghao Technology

    99      Hongdin Invest Development Limited                               Hongdin Invest

            Chain Kingdom Memory Technologies Co., Limited                   Chain         Kingdom      Memory
    100
                                                                             Technologies

            Chain Kingdom Memory Technologies (Shenzhen) Co., Limited        Chain         Kingdom      Memory
    101
                                                                             Technologies (Shenzhen)

    102     Hongjet (Hong Kong) Company Limited                              Hongjet

    103     Xi'an Feihe Real Estate Development Co., Ltd.                    Xi'an Feihe

            Chongqing Xinyuan Semiconductor Co., Ltd.                        Chongqing                  Xinyuan
    104
                                                                             Semiconductor

    105     Jiangxi Konka Industrial Park Development Co. Ltd.               Jiangxi Konka Industrial Park

    106     Ruichang Kangrui Real Estate Co., Ltd.                           Ruichang Kangrui Real Estate



                                                         71
Konka Group Co., Ltd.                                                                      Interim Report 2022



    No.                              Corporate name                                     Abbreviation

    107     Konka Industrial Development (Wuhan) Co., Ltd.                    Industrial development in Wuhan

    108     Shenzhen Kangxiaojia Digital Information Technology Co., Ltd.     Kangxiaojia Digital

    109     Shenzhen Yijiakang Smart Terminal Technology Co., Ltd.            Yijiakang Smart Terminal

            Guizhou Kangkai Material Technology Co., Ltd.                     Guizhou      Kangkai       Material
    110
                                                                              Technology

            Guizhou Konka New Material Technology Co., Ltd.                   Guizhou Konka New Material
    111
                                                                              Technology

    112     Guizhou Kanggui Energy Co., Ltd.                                  Guizhou Kanggui Energy

    113     Guangdong Xinwei Semiconductor Co., Ltd.                          Guangdong Xinwei

    114     Chongqing Kangxingrui Renewable Resources Co., Ltd.               Kangxinrun Renewable Resources

            Guizhou Kanggui Material Technology Co., Ltd.                     Guizhou      Kanggui       Material
    115
                                                                              Technology

    116     Sichuan Chengrui Real Estate Co., Ltd.                            Sichun Chengrui

    117     Chongqing Jiarun Real Estate Co., Ltd.                            Chongqing Jiarun

    118     Nantong Kanghai Technology Industry Development Co., Ltd.         Nantong Kanghai

    119     Chongqing Kangyiyun Business Operation Management Co., Ltd.       Chongqing Kangyiyun

            Shenzhen Kanghong Dongsheng Investment Partnership (LimitedKanghong Dongsheng
    120
            Partnership)

    121     Jiangxi Konka High-tech Park Operation and Management Co., Ltd.   Jiangxi Konka High-tech Park

                                                                              Shangrao Konka Electronic
    122     Shangrao Konka Electronic Technology Innovation Co., Ltd.
                                                                              Technology Innovation

    123     Guizhou Konka New Energy Material Technology Co., Ltd.            Guizhou Konka New Energy


    124     Zhejiang Konka Electronic Technology Co., Ltd.                    Zhejiang Konka Electronic

                                                                              Zhejiang Konka Technology
    125     Zhejiang Konka Technology Industry Development Co., Ltd.
                                                                              Industry

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 Group 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”.

                                                       72
Konka Group Co., Ltd.                                                                   Interim Report 2022


2. Going-concern
The Group has a recent history of profitable operations supported by financial resources and considers
it reasonable to prepare the financial statements on a going concern basis.

IV. Important Accounting Policies and Estimations

1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually and completely present the
Group’s financial positions, business results and cash flows, and other relevant information.


2. Fiscal Period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to
the Gregorian calendar.


3. Operating Cycle
The normal operating cycle refers to the period from the purchase of assets for processing to the
realization of cash or cash equivalents by the Group. An operating cycle for the Group is 12 months,
which is also the classification criterion for the liquidity of its assets and liabilities.


4. Recording Currency
The Group adopted RMB 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 Group 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 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 Group 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
                                                    73
Konka Group Co., Ltd.                                                                 Interim Report 2022


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 all controlled subsidiaries and structural entities.
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 Group 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 Group without any earlier than the time when the Group 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
avoid the re-calculation of the net assets value of the merged party,            the long-term equity
investment held by the Group before the merger, the confirmed relevant profit and loss on the


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Konka Group Co., Ltd.                                                                Interim Report 2022


same party with the Group 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 Group 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 Group 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 Group 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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Konka Group Co., Ltd.                                                                Interim Report 2022


If the Group disposes of the equity investment in a subsidiary Group 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 Group until the loss of control right belong to a package transaction,
the transactions shall be treated as transactions of the disposal of the subsidiary Group 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 Group classifies joint arrangements into joint operations and joint ventures. For a joint
operation, the Group, 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 Group’s stake in the joint operation; recognizes relevant income and expense
according to the Group’s stake in the joint operation. When the Group purchases or sells the
assets not constituting business with the joint operation, the Group 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 Group’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 Group 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


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Konka Group Co., Ltd.                                                              Interim Report 2022


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 Group recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.
(1) Financial assets
1) Classification, recognition and measurement of financial assets
The Group 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 Group classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: ①The business mode of the Group 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 Group 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 Group 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


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Konka Group Co., Ltd.                                                                Interim Report 2022


originally recorded into other comprehensive income shall be transferred out into the current
profit or loss.
The Group 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 Group 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 Group 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
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 Group for strategic purpose, with no
control, joint control or significance influence, and with no active market quotation.
The Group 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 Group 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 Group 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


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Konka Group Co., Ltd.                                                                 Interim Report 2022


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 Group’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 Group 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
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 Group 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


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Konka Group Co., Ltd.                                                                Interim Report 2022


terminated, derecognition of such financial liabilities (or partial financial liabilities) is conducted
by the Group. If the Group (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 Group, 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 Group
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 Group 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 Group preferred level 1 input, and applied level 3 input at last. Level 1
input was applicable for listed stock and bond held by the Group, 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 Group) and held-for-trading financial assets (mainly financial
products held by the Group). 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 Group 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 Group
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
The Group’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


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Konka Group Co., Ltd.                                                                  Interim Report 2022


amount after offset shall be presented in the balance sheet: (1) The Group has the statutory right
to set off recognized amount which is currently executable; (2) The Group 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 Group distinguishes the financial liabilities and equity instruments according to the following
principles: (1) If the Group 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 Group's own equity instrument, it is necessary to consider
whether the Group'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
Group 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 Group'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
Group has taken into account all terms and conditions reached between the Group members and
the holders of financial instruments. If the Group 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 Group 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 Group 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 Group 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


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Konka Group Co., Ltd.                                                             Interim Report 2022


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 Group 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) 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 Group 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 Group 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 Group shall
measure the provision for loss based on the specific expected credit loss amount during the entire
period of existence; if not, the Group 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 Group 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 Group 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 Group 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.


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Konka Group Co., Ltd.                                                               Interim Report 2022


(3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk, the Group 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 Group 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 Group 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 Group 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:


 Item                                     Basis
                                          The Accepter shall be the bank with high credit level and low
 Bank Acceptance
                                          risks
                                          Classified by credit risk of acceptors (the same as accounts
 Trade Acceptance
                                          receivable)


13. Accounts Receivable
For account receivable and contract assets excluding significant financing composition, the Group
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 Group 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 Group 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

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Konka Group Co., Ltd.                                                                   Interim Report 2022



 Item                              Basis
                                   feature.
 Related party combination         The accounts receivable within the scope of consolidation


14. Accounts Receivable Financing
The Group’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 Group 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 Group 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 Group 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 Group 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 Group shall divide them into different
combinations based on the specific credit risk features:


 Item                            Basis
                                 This portfolio is accounts receivable with aging as the credit risk
 Aging Combination
                                 feature.
                                 This combination shall regard other receivables of extremely low
 Low Risk Combination            risk (including the revolving fund, the cash deposit and the guarantee
                                 deposit) as the credit risk feature.
 Related                party
                                 Other receivables within the scope of consolidation.
 combination


16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases remarkably
after the initial recognition, the Group 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 Group 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
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Konka Group Co., Ltd.                                                             Interim Report 2022



 Item                       Basis
 Combination                credit risk characteristics
 Franchise                  Regarding the long-term receivables related to the PPP Project as the
 Combination                credit risk characteristics


17. Inventories
The Group'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.
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 Group to receive consideration after transferring goods to
customers, and this right depends on factors other than the passage of time. If the Group sells two
clearly distinguishable products to customers, it has the right to receive payment because one of

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Konka Group Co., Ltd.                                                             Interim Report 2022


the products has been delivered, but the payment is also dependent on the delivery of the other
product, the Group 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 Group 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 Group will recognize the difference as an impairment loss and debit the "asset
impairment loss". Credited "Contract asset impairment provision". On the contrary, the Group
recognizes the difference as an impairment gain and keeps the opposite accounting records.
If the Group 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 Group’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 Group 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, clearly the cost borne by the customer, and other costs incurred only due
to the contract; this cost increases the Group'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 Group 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
Group will not incur without obtaining the contract. The Group'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 Group’s assets related to contract costs are amortized on the same basis as the commodity


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Konka Group Co., Ltd.                                                                Interim Report 2022


revenue recognition related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Group 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 Group’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 Group's long-term equity investments mainly consist of investments in subsidiaries,
associated enterprises, and joint ventures.
The Group’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 Group 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 Group holds less than 20% of the voting rights of the investee, it also needs to
judge whether the Group 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 Group. 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 Group's financial statements shall be made in the


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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 Group 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.
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 Group'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 Group 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


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Konka Group Co., Ltd.                                                               Interim Report 2022


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 Group 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 Group is regarded as the cost of investment.
The Group 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
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 Group, 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


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Konka Group Co., Ltd.                                                                Interim Report 2022


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


21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group 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


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board of directors (or similar organizations) makes a written resolution to use the vacant buildings
held by the Group 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 Group 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 Group 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. 27. “Long-term assets impairment”.
The Group'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 Group’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.


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Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Group and their cost can be measured reliably. The Group’s
fixed assets include buildings and constructions, machinery and equipment, electronic equipment,
transportation equipment, and other equipment.
The Group 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 Group’s fixed assets are as follows.
                                                                                     Annual
                                                Depreciation       Expected       net
No.         Category          Method                                                 deprecation
                                                period (year)      salvage value (%)
                                                                                     (%)
            Housing      andStraight-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

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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.

25. Right-of-Use Assets
The right-of-use assets refer to the right of the Group as the lessee to use the leased assets during the
lease term.
(1) Initial measurement
After the commencement date of the lease term, the Group uses the cost for initial measurement of
right-of-use assets. The cost includes the following four items: a) The initial measurement amount of
lease liabilities; b) If there is a lease incentive for the lease payment paid on or before the
commencement date of the lease term, the relevant amount of the lease incentive already enjoyed shall
be deducted; c) The initial direct expenses incurred are the incremental costs incurred in reaching the
lease; d) The costs expected to be incurred for dismantling and removing the leased assets, restoring
the site where the leased assets are located or restoring the leased assets to the state agreed in the lease
terms, except those incurred for the production of inventories.
(2) Follow-up measurement
After the commencement date of the lease term, the Group adopts the cost model to carry out follow-
up measurement of the right-of-use assets, that is, the right-of-use assets are measured at cost less
accumulated depreciation and accumulated impairment losses. If the Group re-measures the lease
liabilities according to the relevant provisions of the lease standards, the book value of the right-of-use
assets shall be adjusted accordingly.
Depreciation of right-of-use assets
From the commencement date of the lease term, the Group has accrued depreciation on the right-of-
use assets. Right-of-use assets are usually depreciated from the month when the lease term begins. The
accrued depreciation amount is included in the cost of related assets or current profits and losses
according to the use of the right-of-use assets.
When determining the depreciation method of the right-of-use assets, the Group makes a decision
based on the expected consumption mode of the economic benefits related to the right-of-use assets,
and accrues depreciation for the right-of-use assets on the straight-line method.
When determining the depreciation period of the right-of-use assets, the Group follows the following
principles: If the ownership of the leased assets can be reasonably determined when the lease term
expires, depreciation shall be accrued within the remaining service life of the leased assets; if it cannot

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Konka Group Co., Ltd.                                                                Interim Report 2022


be reasonably determined that the ownership of the leased asset can be obtained when the lease term
expires, depreciation shall be accrued within the shorter of the lease term and the remaining service
life of the leased asset.
Impairment of right-of-use assets
If the right-of-use assets are impaired, the Group carries out subsequent depreciation according to the
book value of the right-of-use assets after deducting the impairment loss.


26. Intangible Assets
The Group’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 Group 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

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Konka Group Co., Ltd.                                                              Interim Report 2022


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.


27. 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 Group 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.
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.


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28. Long-term Deferred Expenses
The Long-term deferred expenses of the Group 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.


29. Contract Liabilities
Liabilities of contracts refer to the Group'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 Group 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.


30. Employee Compensation
Salaries of staff of the Group 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 Group. 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 the current
profit and loss or the cost of related assets according to the beneficiary. If the Group 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 Group 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


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Konka Group Co., Ltd.                                                                   Interim Report 2022


dismiss ion welfare. The Group 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 Group 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.


31. Lease Liabilities
(1) Initial measurement
The Group initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term.
1) Lease payments
Lease payments refer to the amount paid by the Group to the lessor related to the right to use the
leased assets during the lease term, including: a) Fixed payment amount and substantial fixed payment
amount. If there is lease incentive, deduct the amount related to lease incentive; b) The variable lease
payment amount depending on the index or ratio, which is determined according to the index or ratio
on the commencement date of the lease term at the initial measurement; c) When the Group
reasonably determines the exercise price of the purchase option when it will exercise it; d) The lease
term reflects the amount to be paid to exercise the termination option when the Group will exercise the
termination option; e) The amount expected to be paid based on the residual value of the guarantee
provided by the Group.
2) Rate of discount
When calculating the present value of the lease payments, the Group uses the interest rate implicit in
lease as the rate of discount, which is the interest rate at which the sum of the present value of the
lessor's lease receipts and the present value of the unsecured residual value equals the sum of the fair
value of the leased asset and the lessor's initial direct expenses. If the Group fails to determine the
interest rate implicit in lease, the incremental interest rate on borrowing will be used as the rate of
discount. The incremental interest rate on borrowing shall mean the interest rate payable by the Group
to borrow funds under similar mortgage conditions during similar periods to acquire assets close to the
value of the right-of-use assets under similar economic circumstances. The interest rate is related to
the following matters: a) The Group's own situation, that is, the Company's solvency and credit status;
b) The term of "loan", that is, the lease term; c) The amount of "borrowed" funds, that is, the amount
of lease liabilities; d) "Mortgage conditions", that is, the nature and quality of the underlying assets; e)
Economic environment, including the jurisdiction where the lessee is located, the valuation currency,
the time when the contract is signed, etc. The incremental borrowing rate is based on the Group's latest
asset-based lending interest rate for similar assets and adjusted to take into account the above factors.
(2) Follow-up measurement
After the commencement date of the lease term, the Group carries out follow-up measurement of lease
liabilities according to the following principles: a) When recognizing the interest of lease liabilities,
the Group will increase the carrying amount of lease liabilities; b) When paying the lease payments,
the Group will reduce the book amount of the lease liability; c) When the lease payments changes due
to revaluation or lease change, the Group will remeasure the book value of lease liability.
The Group calculates the interest expenses of the lease obligations during each period of the lease

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term at a fixed periodic interest rate, and includes them (except those that shall be capitalized) in profit
or loss for the current period. Periodic rate refers to the rate of discount adopted by the Group when
initially measuring lease liabilities, or the revised rate of discount adopted by the Group when lease
liabilities need to be remeasured according to the revised rate of discount due to changes in lease
payments or lease changes.
(3) Re-measurement
After the commencement date of the lease term, the Group re-measures the lease liability based on the
present value of the changed lease payment and adjusts the book value of the right-of-use assets
accordingly when the following circumstances occur. If the carrying value of the right-of-use assets
has been reduced to zero, but the lease obligations still need to be further reduced, the Group will
include the remaining amount in profit or loss for the current period. a) The actual fixed payment
amount changes (in this case, the original rate of discount is used for discount); b) The estimated
amount payable of the residual value changes (in this case, the original rate of discount is used for
discount); c) The index or ratio used to determine the lease payment changes (in this case, the revised
rate of discount is used for discount); d) The evaluation result of the purchase option changes (in this
case, the revised rate of discount is adopted for discount); e) The evaluation result or actual exercise of
the lease renewal option or the lease termination option changes (in this case, the revised rate of
discount is adopted for discount).


32. Provisions
The Group 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.


33. Principles of Revenue Recognition and Measurement Method
The revenue of the Group mainly consists of the income from main business and the income from
other businesses.




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(1)Revenue recognition principle
The Group 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 Group 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:
①The customer obtains and consumes the economic benefits brought by the Group's performance
at the same time the Group performs the contract.
②The customer can control the products under construction during the performance of the Group.
③The goods produced during the performance of the Group have irreplaceable uses, and the
Group 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 Group recognizes
revenue according to the performance progress during that period. When the performance
progress cannot be reasonably determined, if the cost incurred by the Group 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 Group 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 Group considers the following
signs:
①The Group enjoys the current right to receive payment for the goods or services.
②The Group has transferred the legal ownership of the product to the customer.
③The Group has transferred the goods in kind to the customer.
④The Group 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 Group 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 Group's unconditional right to collect consideration from customers is listed as receivables.
The Group’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



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① If the contract contains two or more performance obligations, at the beginning of the contract,
the Group 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 Group expects to be entitled to
receive due to the transfer of goods or services to customers, excluding payments collected on
behalf of third parties and payments expected to be returned to customers. The transaction price
confirmed by the Group 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 Group and its customers, the Group 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 Group 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 Group 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 Group 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 Group 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


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interest method during the contract period. On the starting date of the contract, the Group 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 Group 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 Group 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 Group 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
provides a separate service in addition to ensuring that the products sold meet the established
standards, the Group considers whether the quality assurance is a legal requirement, the quality
assurance period, and the nature of the Group's commitment to perform the tasks.
⑧ When the construction contract between the Group 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
Group 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 Group 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 Group 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 Group'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 Group 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



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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 Group 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 Group'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.


34. Government Grants
The government grants of the Group 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. If the
beneficiaries are not specified in government documents, the Group 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.


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The Group 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
Group. 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 Group 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.
(2) Where the government allocates the funds directly to the Group, the grants are offset against
borrowing costs.
Where the government grants that the Group 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.


35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Group'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
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 Group 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.

36. Leasing
(1) Identification of leases
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. On the
commencement date of the contract, the Group assesses whether the contract is a lease or contains

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a lease. If a party to the contract transfers the right allowing the control over the use of one or
more assets that have been identified within a certain period, in exchange for a consideration,
such contract is a lease or includes a lease. In order to determine whether a party to the contract
transfers the right allowing the control over the use of the identified assets for a certain period of
time, the Group assesses whether the customers in the contract are entitled to obtain almost all the
economic benefits arising from the use of the identified assets during the use period, and have the
right to dominate the use of the identified assets during the use period.
If a contract contains multiple single leases at the same time, the Group will split the contract, and
conduct accounting treatment of each single lease respectively. If a contract contains both lease
and non-lease parts at the same time, the Group will split the lease and non-lease parts for
accounting treatment.
(2) The Group as lessee
1) Lease recognition
On the commencement date of the lease term, the Group recognizes the right-of-use assets and
lease obligations in respect of the lease. For the recognition and measurement of right-of-use
assets and lease liabilities, please refer to Note IV "25. Right-of-use assets" and "31. Lease
liabilities".
2) Lease change
A lease change refers to a change in the scope, consideration, and term of lease outside the
original contract clauses, including the addition or termination of the one or several rights to use
lease assets, and the extension or reduction of the lease term specified in the contract. The
effective date of lease change refers to the date when both parties reach an agreement on lease
change.
If the lease changes and the following conditions are met at the same time, the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope or extends
the lease term by increasing the right to use one or more leased assets; b) The increased
consideration is equivalent to the separate price of the expanded lease scope or the extended lease
term adjusted according to the contract conditions.
If the lease change is not accounted for as a separate lease, on the effective date of the lease
change, the Group will allocate the consideration of the changed contract in accordance with the
relevant provisions of the lease standards and re-determine the changed lease term. The revised
rate of discount is used to discount the changed lease payments to remeasure the lease liability.
When calculating the present value of the changed lease payments, the Group uses the interest
rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be
determined, the Group adopts the incremental borrowing rate of the lessee on the effective date of
the lease change as the rate of discount. With regard to the impact of the above-mentioned lease
liability adjustment, the Group conducts accounting treatment according to the following
situations: a) The lessee will correspondingly reduce the book value of the right-of-use assets and
include the profit or loss of the lease terminated in part or whole in the current profit or loss, if the
lease change narrows the scope of lease or shortens the lease term. b) The lessee will
correspondingly adjust the book value of the right-of-use assets, if other lease changes result in
the re-measurement of the lease obligation.
3) Short-term and low-value asset leases
For short-term leases with a lease term not exceeding 12 months and low-value asset leases with
lower value when single leased assets are brand new assets, the Group chooses not to recognize

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right-of-use assets and lease liabilities. The Group 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.
(3) The Group as lessor
On the basis that (1) the contract assessed is a lease or includes a lease, the Group, as the lessor,
classifies leases into finance leases and operating leases on the lease commencement date.
If a lease substantially transfers virtually all risks and rewards associated with ownership of the
leased asset, the lessor classifies the lease as a finance lease and leases other than finance leases
as operating leases.
The Group usually classifies a lease that falls under any one or more of the following
circumstances as a finance lease: a) When the lease term expires, the ownership of the leased
asset is transferred to the lessee; b) The lessee has the option to purchase the leased asset(s). As
the agreed purchase price is low enough compared with the fair value of the leased asset(s) at the
time the option is expected to be exercised, it can be reasonably determined at the inception of the
lease that the lessee will exercise the option; c) Although the ownership of the assets is not
transferred, the lease term accounts for most of the service life of the leased assets; d) On the
lease commencement date, the present value of lease receipts is almost equivalent to the fair value
of leased assets; e) The leased assets are special in nature, and only the lessee can use them
without major renovation. The Group may also classify a lease that falls under any one or more of
the following circumstances as a finance lease: a) If the lessee cancels the lease, losses to the
lessor caused by the cancellation will be borne by the lessee; b) The gains or losses arising from
the fluctuation of the fair value of the residual value of assets belong to the lessee; c) The lessee
has the ability to continue leasing until the next term at a rent far below the market level.
1) Accounting treatment of finance leases
Initial measurement
On the commencement date of the lease term, the Group recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. It recognizes the net
investment in the lease as the entry value of the finance lease, when initially measuring the
finance lease receivable.
The net investment in the lease is the sum of the net value of the unguaranteed residual value and
the lease receivable not received on the commencement date of the lease term at the interest rate
implicit in lease. Lease collection amount refers to the amount that the lessor should collect from
the lessee for transferring the right to use the leased assets during the lease term, including: a)
Fixed payment amount and substantial fixed payment amount that the lessee needs to pay. If there
is lease incentive, deduct the amount related to lease incentive; b) The variable lease payment
depending on the index or ratio, which is determined according to the index or ratio on the
commencement date of the lease term at the initial measurement; c) The exercise price of the
purchase option, provided that it is reasonably determined that the lessee will exercise the option;
d) The amount to be paid by the lessee to exercise the option to terminate the lease, provided that
the lease term reflects that the lessee will exercise the option to terminate the lease; e) The
residual value of guarantee provided to the lessor by the lessee, the party related to the lessee and
an independent third party that has the financial ability to fulfill the guarantee obligation.
Follow-up measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each period in
the lease term. Periodic rate refers to the rate of discount implicit in lease adopted to determine

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the net investment in the lease (in the case of sublease, if the interest rate implicit in lease of
sublease cannot be determined, the rate of discount implicit in original lease is adopted (adjusted
according to the initial direct expenses related to sublease)), or the revised rate of discount
determined in accordance with the relevant provisions where the change of the finance lease is
not accounted for as a separate lease and meets the condition that the lease will be classified as a
finance lease if the change became effective on the lease commencement date.
Accounting treatment of lease change
If the lease changes and the following conditions are met at the same time, the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope by
increasing the right to use one or more leased assets; b) The increased consideration is equivalent
to the separate price of the expanded lease scope adjusted according to the contract conditions.
If the change of finance lease is not accounted for as a separate lease, and the condition that the
lease will be classified as an operating lease if the change takes effect on the lease
commencement date is met, the Group will account for it as a new lease from the effective date of
the lease change, and take the net lease investment before the effective date of the lease change as
the book value of the leased asset.
2) Accounting treatment of operating leases
Treatment of rent
The Group recognizes lease receipts from operating leases as rental income on a straight-line
basis during each period of the lease term.
Incentives provided
If the Group provides a rent-free period, it allocates the total rentals over the entire lease term
without deducting the rent-free period by the straight-line method, and also recognizes rental
income during the rent-free period. If certain expenses of the lessee are borne, the Group allocates
the balance of rental income over the lease term after such expenses are deducted from the gross
rental income.
Initial direct cost
Initial direct expenses incurred by the Group in connection with operating leases shall be
capitalized to the cost of the leased underlying asset and recorded in the profits and losses of the
current period in stages over the lease term on the same basis of recognition as rental income.
Depreciation
For the fixed assets in the assets under operating lease, the Group adopts the depreciation policy
of similar assets to calculate and distill depreciation. For other assets under operating lease, the
Group amortizes them in a systematic and reasonable manner.
Variable lease payments
Variable lease payments made by the Group in relation to operating leases that are not included in
the lease receivable are included in the current profit or loss when they are actually incurred.
Change of operating leases
If an operating lease changes, the Group will regard it as a new lease for accounting treatment
from the effective date of the change. The advance receipt or the lease receivable related to the
lease prior to the change is recognized as the payment receivable of the new lease.


37. Changes in Main Accounting Policies and Estimates

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(1) Changes of accounting policies
No such cases in the Reporting Period.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.

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 after deducting
                        the deductible withholding
VAT                     VAT at current period, of 1%、3%、5%、6%、9%、13%
                        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, Ningbo
Urban                                         Kanghanrui, Jiangsu Konka Smart, Yibin
                 The circulating tax actually Kangrun, Yibin Kangrun Medical, Yibin
maintenance and                               Kangrun Environmental Protection. Paid at
                 paid
construction tax                              1%: Jiangxi Konka, Jiangxi High
                                              Transparent     Substrate,     Jiangkang
                                              (Shanghai) Technology. Paid at 7%: other
                                              subsidiaries.
                        The circulating tax actually
Education surtax                                           3%
                        paid
Local    education The circulating tax actually
                                                           2%
surtax                  paid
Enterprise income                                          25%/ See 2.Tax Preference and Approved
                        Taxable income                     Documents for details
tax
The main taxpayers of different corporate income tax rates are explained as follows:

                   Name of entity                                        Income tax rate
Xingda Hongye, Wankaida, Jiangxi Konka,
Jiangxi High Transparent Substrate, Chongqing                                  15%
Kangxingrui, Chengdu Konka
Hong Kong Konka, Konka Electrical Appliances
                                                                              16.5%
International     Trading,     Jiali      International,

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                   Name of entity                                   Income tax rate
Kangjietong,       Jiaxin    Technology,     Jiaxin
Technology,      Konka      Electrical   Appliances
Investment,, Konka Mobility, Kowin Memory
(Hong Kong)
Chain Kingdom Memory Technologies                                    8.25%/16.5%
Konka Europe                                                              15%
Kanghao Technology                                                       22.5%
Konka North America                                                       21%
The Company as the Parent and other subsidiaries                          25%

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

(1) According to the No. 8 announcement in 2021 and No 13 announcement in 2022 issued by
State Taxation Administration: Notice on the implementation of the inclusive tax reduction and
exemption policy for small and micro enterprises, the annual taxable income of small and
profitable enterprises is not The portion exceeding RMB1 million will be reduced to 12.5% 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 25% Include the taxable income and pay corporate income tax at a rate of 20%.

(2) 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%.

(3) On 14 September 2020, Jiangxi High Transparent Substrate, 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

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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%.

(4) 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%.

(5) On 20 December 2021, XingDa HongYe, a subsidiary of the Company, obtained the "High-
tech Enterprise Certificate" jointly issued by Department of Science and Technology of
Guangdong Province, Department of Finance of Guangdong Province and Guangdong Provincial
Tax Service of State Taxation Administration (No. GR202144002737), which will be valid for
three years. According to relevant tax regulations, XingDa HongYe enjoys relevant preferential
tax policies for high-tech enterprises for three consecutive years from 2021 to 2023, and pays
enterprise income tax at a reduced rate of 15%.

(6) 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 and Chengdu Konka Electronic, subsidiaries of the Company, are
eligible for this preferential tax policy.

(7) 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,
Electronics Technology and Anhui Tongchuang all enjoy this preferential policy.

VI. Notes to Major Items in the 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 2022, the period-


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Konka Group Co., Ltd.                                                           Interim Report 2022


end refers to 30 June 2022, this period refers to the period from 1 January 2022 to 30 June 2022
and the last period refers to the period from 1 January 2021 to 30 June 2021. The monetary unit is
renminbi.

1. Monetary Assets

                Item                       Ending balance                Beginning balance
Cash on hand                                                 9.41                        363.22
Bank deposits                                   5,934,218,376.34                5,968,346,855.81
Other monetary assets                             600,420,010.11                  521,205,992.21
                Total                           6,534,638,395.86                6,489,553,211.24
Of     which:      total   amount
                                                  191,805,082.38                  167,359,880.91
deposited 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

No such cases at the end of the Reporting Period.

3. Notes Receivable

(1) Notes Receivable Listed by Category

                Item                       Ending balance                 Opening balance
Commercial acceptance bill                       223,163,880.43                  561,724,266.27
Bank’s acceptance bill                           711,678,224.25                1,215,753,215.01
                Total                             934,842,104.68                1,777,477,481.28

(2) Notes Receivable Pledged by the Company at the Period-end

                Item                                           Amount

Bank’s acceptance bill                                                           368,248,481.12

Commercial acceptance bill                                                          4,825,490.66

                Total                                                             373,073,971.78

(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 period-     recognition at the period-end
                                                 end

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Konka Group Co., Ltd.                                                              Interim Report 2022



                 Item                 Amount of recognition              Amount of not terminated
                                     termination at the period-        recognition at the period-end
                                                end
Bank’s acceptance bill                        1,014,652,928.06
Commercial acceptance bill                                                           151,757,113.09
                Total                          1,014,652,928.06                      151,757,113.09

(4) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the
Contract or Agreement

No such cases in the Reporting Period.

(5) Listed by Withdrawal Methods for Bad Debt Provision

                                                      Ending balance
                           Carrying amount               Bad debt provision
                                                                           With
                                                                           draw
Category
                                           Proport                          al     Carrying value
                           Amount                         Amount
                                           ion (%)                         prop
                                                                           ortio
                                                                          n (%)
Provision for bad
debts     provided
individually
Bad             debt
provision       made      939,489,453.78    100.00        4,647,349.10      0.49      934,842,104.68
as per portfolio
Of which: Bank
                          711,678,224.25     75.75                                    711,678,224.25
acceptance bill
         Commerci
                          227,811,229.53     24.25        4,647,349.10      2.04      223,163,880.43
al acceptance bill
        Total             939,489,453.78    100.00        4,647,349.10      0.49      934,842,104.68

      (Continued)

                                                  Beginning balance
Category
                           Carrying amount               Bad debt provision        Carrying value




                                                111
Konka Group Co., Ltd.                                                                  Interim Report 2022



                                                                              With
                                                                              draw
                                            Proport                             al
                          Amount                              Amount
                                            ion (%)                           prop
                                                                              ortio
                                                                              n (%)
Provision for bad
debts      provided
individually
Bad              debt
provision       made    1,789,175,291.65        100.00      11,697,810.37      0.65     1,777,477,481.28
as per portfolio
Of which: Bank
                        1,215,753,215.01         67.95                                  1,215,753,215.01
acceptance bill
          Commerci
                         573,422,076.64          32.05      11,697,810.37      2.04      561,724,266.27
al acceptance bill
        Total           1,789,175,291.65        100.00      11,697,810.37      0.65     1,777,477,481.28

1) In the group, notes receivable, for which the provision for expected credit loss was made
according to trade acceptance

                                                               Ending balance
                Name                                                                    Withdrawal
                                    Carrying amount          Bad debt provision
                                                                                       proportion (%)
Within 1 year                           227,811,229.53              4,647,349.10                      2.04

                Total                   227,811,229.53              4,647,349.10                      2.04

(6) Bad debt provision for notes receivable withdrawn, collected or reversed during the Reporting
Period

                                                      Changed amount
                        Beginning       With        Collected or                             Ending
   Category                                                             Write-off or
                         balance        draw             reversed                           balance
                                                                            verified
                                           al
Commercial
                        11,697,810.37                    7,050,461.27                       4,647,349.10
acceptance bill
Bank’s
acceptance bill
        Total           11,697,810.37                    7,050,461.27                       4,647,349.10


                                                   112
Konka Group Co., Ltd.                                                                Interim Report 2022


(7) 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) Accounts Receivable Listed by Withdrawal Methods for Bad Debts

                                                      Ending balance
                          Carrying amount                  Bad debt provision
                                                                             With
                                                                             draw
     Category                              Propor
                                                                                al   Carrying value
                          Amount            tion            Amount
                                                                             prop
                                            (%)
                                                                             ortio
                                                                             n (%)
Accounts
receivable, for
which         the
independent             1,577,591,336.54    33.12         1,040,697,168.86   65.97     536,894,167.68
provision     for
expected credit
losses
Accounts
receivable, for
which         the
provision     for
expected credit
losses        was
withdrawn
according       to
groups
Of         which:
                        3,186,183,833.65    66.88          350,449,169.82    11.00   2,835,734,663.83
aging group
Subtotal        of
                        3,186,183,833.65    66.88          350,449,169.82    11.00   2,835,734,663.83
groups
      Total             4,763,775,170.19   100.00         1,391,146,338.68   29.20   3,372,628,831.51

      (Continued)

                                                    Beginning balance
     Category
                          Carrying amount                  Bad debt provision        Carrying value

                                                    113
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                                                                               With
                                                                               draw
                                           Propor
                                                                                al
                          Amount            tion            Amount
                                                                              propo
                                            (%)
                                                                               rtion
                                                                               (%)
Accounts
receivable, for
which         the
independent             1,608,537,820.30    33.82         1,061,967,130.77     66.02       546,570,689.53
provision     for
expected
credit losses
Accounts
receivable, for
which         the
provision     for
expected
credit     losses
was
withdrawn
according       to
groups
Of       which:
                        3,148,039,065.69    66.18          296,880,274.15       9.43     2,851,158,791.54
aging group
Subtotal        of
                        3,148,039,065.69    66.18          296,880,274.15       9.43     2,851,158,791.54
groups
      Total             4,756,576,885.99   100.00         1,358,847,404.92     28.57     3,397,729,481.07

1) Accounts receivable, for which, the independent provision for expected credit loss is made at
the period-end

                                                           Ending balance
                                                                             Withdr
         Name                                         Bad debt                awal        Withdrawal
                           Carrying amount
                                                      provision              proport         reason
                                                                             ion (%)
Shanghai        Huaxin
                                299,136,676.70        270,016,218.90           90.27   Debt default
International Group


                                                    114
Konka Group Co., Ltd.                                                         Interim Report 2022



                                                  Ending balance
                                                                  Withdr
        Name                                  Bad debt             awal        Withdrawal
                        Carrying amount
                                              provision           proport          reason
                                                                  ion (%)
Co., Ltd.
Hongtu        Sanbao
High-tech                                                                   Agreement
                           200,000,000.00         80,000,000.00     40.00
Technology       Co.,                                                       reorganization
Ltd.
Tewoo Group Co.,                                                            Judicial
                           200,000,000.00     100,000,000.00        50.00
Ltd.                                                                        reorganization
Shenzhen       Yaode                                                        It is not expected
Technology       Co.,      137,931,418.85         68,528,250.38     49.68   to recover all of
Ltd.                                                                        them
Guangan       Ouqishi
                                                                            It is not expected
Electronic
                           113,230,553.53     101,907,498.18        90.00   to recover all of
Technology       Co.,
                                                                            them
Ltd.
.Zhongfu Tiangong
Construction Group
Co., Ltd. (formerly                                                         It is not expected
known              as       71,689,096.65         46,662,912.82     65.09   to recover all of
“Zhonghegong                                                               them
Construction Group
Co., Ltd.)
CCCC First Harbor                                                           Expected to be
Engineering                 65,221,300.00         58,699,170.00     90.00   difficult         to
Company Ltd.                                                                recover in full
China         Energy                                                        Expected to be
Electric Fuel Co.,          50,000,000.00         42,500,000.00     85.00   difficult         to
Ltd.                                                                        recover in full
Tahoe Group Co.,                                                            Debt
                            50,000,000.00         40,000,000.00     80.00
Ltd.                                                                        reorganization
                                                                            The counterparty
H-BUSTER          DO
                                                                            is bankrupt and
BRASIL                      18,458,464.59         18,458,464.59    100.00
                                                                            is expected to be
INDUSTRIA
                                                                            difficult         to

                                            115
 Konka Group Co., Ltd.                                                              Interim Report 2022



                                                      Ending balance
                                                                      Withdr
         Name                                      Bad debt            awal          Withdrawal
                         Carrying amount
                                                  provision           proport            reason
                                                                      ion (%)
                                                                                 recover
                                                                                 It is not expected
Others                       371,923,826.22        213,924,653.99        57.52   to recover all of
                                                                                 them
         Total              1,577,591,336.54     1,040,697,168.86        65.97

 2) Accounts receivable, for which the provision for expected credit losses was withdrawn
 according to groups

                                                          Ending balance
                Aging                                                                  Withdrawal
                                   Carrying amount         Bad debt provision
                                                                                     proportion (%)
 Within 1 year                         2,559,004,569.98             52,203,693.17                  2.04

 1 to 2 years                            207,273,622.32             20,768,816.96                 10.02

 2-3 years                               135,613,018.70             30,770,593.94                 22.69

 3-4 years                               107,023,225.80             69,436,668.90                 64.88

 Over 4 years                            177,269,396.85         177,269,396.85                  100.00

                Total                  3,186,183,833.65         350,449,169.82                    11.00

This portfolio is recognized based on the aging characteristics of accounts receivable, and the
withdrawal proportion of bad debt provision is recognized based on the historical loss rate and
forward-looking factors.

 (2) Accounts Receivable Listed by Aging

                Aging                                     Ending balance
 Within 1 year                                                                      2,560,479,907.78
 1 to 2 years                                                                         298,297,639.07
 2 to 3 years                                                                         828,608,040.41
 3 to 4 years                                                                         869,088,911.41
 Over 4 years                                                                         207,300,671.52
             Subtotal                                                               4,763,775,170.19
 Less: bad debt provision                                                           1,391,146,338.68
 Total                                                                              3,372,628,831.51

 (3) Bad debt provision for accounts receivable during the Reporting Period

                                                116
Konka Group Co., Ltd.                                                                 Interim Report 2022



                                                                      Changed amount
      Category               Beginning balance                                        Collected or
                                                            Withdrawal
                                                                                        reversed
Bad debt provision of
                                     1,358,847,404.92           42,299,060.06
accounts receivable
          Total                      1,358,847,404.92           42,299,060.06

    (Continued)

                                             Changed amount
      Category                                            Decrease for other         Ending balance
                            Write-off or verified
                                                               reasons
Bad debt provision of
                                        15,638,405.09            -5,638,278.79        1,391,146,338.68
accounts receivable
          Total                         15,638,405.09            -5,638,278.79        1,391,146,338.68

Decreases for other reasons were RMB-5,698,717.04 due to exchange rate changes and the
decrease by RMB60,438.25 due to the loss of controlling right.

(4) Accounts receivable actually verified during the Reporting Period

                      Item                                            Amount verified
Actually verified accounts receivable                                                15,638,405.09

Of which the verification of significant accounts receivable:

                                                                                              Whether
                                                                                              occurred
                                                                            Verification     because of
                           Natur         Verification       Reason for
    Name of entity                                                             procedures      related-
                             e             Amount           verification
                                                                               performed        party
                                                                                             transactio
                                                                                                  ns
                                                                           Approved by
                           Paym
Shantan      Innovations                                  Expected to be   the Board of
                           ent for         2,825,921.20                                          No
Pvt. LTD                                                  unrecoverable    Directors of
                           goods
                                                                           subsidiary
                                                                           Approved by
ASANZO            GROUP    Paym
                                                          Expected to be   the Board of
JOINT             STOCK    ent for         6,292,153.94                                          No
                                                          unrecoverable    Directors of
COMPANY                    goods
                                                                           subsidiary
ASANZO            MEDIA    Paym            2,036,473.41   Expected to be   Approved by           No

                                                    117
 Konka Group Co., Ltd.                                                              Interim Report 2022


                                                                                             Whether
                                                                                             occurred
                                                                            Verification    because of
                          Natur      Verification          Reason for
     Name of entity                                                         procedures       related-
                            e          Amount             verification
                                                                             performed        party
                                                                                            transactio
                                                                                                ns
 AND                      ent for                        unrecoverable      the Board of
 ENTERTAINMENT            goods                                             Directors of
 JOIN                                                                       subsidiary
                                                                            Approved by
                          Paym
 A SANZO VIET NAM                                        Expected to be     the Board of
                          ent for       4,483,856.54                                           No
 ELECTRONIC JOINT                                        unrecoverable      Directors of
                          goods
                                                                            subsidiary
          Total                        15,638,405.09

 (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 1,734,749,192.99, accounting for 36.42% of total closing balance of account receivable,
 the relevant ending balance of bad debt provision withdrawn was RMB471,176,245.94.

 (6) Accounts Receivable Derecognized due to the Transfer of Financial Assets

 There was no accounts receivable derecognized for transfer of financial assets.

 (7) Amount of Assets and Liabilities Formed due to the Transfer and the Continued Involvement
 of Accounts Receivable

There is no amount of assets and liabilities formed due to the transfer of accounts receivable and
continued involvement in Reporting Period.

 5. Accounts Receivable Financing

             Item                       Ending balance                       Beginning balance
 Notes Receivable                                      9,926,723.80                      71,490,688.54
            Total                                      9,926,723.80                      71,490,688.54

 6. Prepayments

 (1) Age of prepayments

     Item                   Ending balance                               Beginning balance


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                           Amount           Proportion              Amount                   Proportion
                                               (%)                                               (%)
Within         1
                           583,266,427.55         95.41             602,386,221.38                    95.41
year
1 to 2 years                13,380,428.37             2.19           20,098,838.22                     3.18
2-3 years                   10,227,155.90             1.67                8,614,486.12                 1.36
Over 3 years                 4,475,658.82             0.73                 301,408.14                  0.05
   Total                   611,349,670.64        100.00             631,400,953.86                   100.00

Note: The amount of prepayments aged over one year at the end of the period is RMB
28,083,243.09, accounting for 4.59% of the total balance of prepayments of the Company, and
consists mainly of payments for goods afloat or unsettled payments.

(2) Prepayments to Suppliers from Top 5 Prepaid Parties Classified based on the Ending Balance

The total amount of prepayments with top 5 ending balance collected by prepaid party was
RMB205,452,468.95, accounting for 33.61% of the total ending balance of prepayments.

7. Other Receivables

                   Item                        Ending balance                    Opening balance
Interests receivable                                   3,478,418.99                      2,573,082.79
Dividends receivable
Other Receivables                                    1,806,783,384.89                    1,834,886,622.85
                   Total                             1,810,261,803.88                    1,837,459,705.64

7.1 Interests Receivable

(1) Category of Interests Receivable

                   Item                        Ending balance                   Opening balance
Term deposit                                          2,907,863.11                      2,002,526.91
Factoring interest                                           570,555.88                         570,555.88
                   Total                                 3,478,418.99                        2,573,082.79

(2) Withdrawal of Bad Debt Provision for Interests Receivable

The Company did not have impaired interests receivable.

7.2 Dividends Receivable

(1) No such cases at the end of the Reporting Period.

7.3 Other Receivables

(1) Classified by Account Nature


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Konka Group Co., Ltd.                                                                       Interim Report 2022



                   Nature                         Ending carrying balance           Opening carrying balance
Deposit and margin                                             1,324,584,359.75              1,356,193,440.22

Intercourse funds among minority
shareholders          in      the    business
                                                                175,020,491.02                 173,487,141.27
consolidation not under the same
control and related parties
Energy-saving subsidies receivable                              152,399,342.00                 152,399,342.00

Others                                                         1,536,387,839.20              1,489,929,312.88

                   Total                                       3,188,392,031.97              3,172,009,236.37

(2) Withdrawal of Bad Debt Provision for Other Receivables

                               Stage 1              Stage 2               Stage 3
                                                Expected loss in      Expected credit
   Bad debt                Expected credit       the duration          losses for the
                                                                                                 Total
   provision               loss of the next         (credit           entire duration
                             12 months          impairment not          (with credit
                                                   occurred)            impairment)
Balance as at 1
                             17,419,904.57       182,212,040.32        1,137,490,668.63      1,337,122,613.52
January 2022
In the Reporting
Period, carrying
amount of other              -4,196,042.85          4,196,042.85
receivables on 1
January 2022
——Transferred
                             -4,196,042.85          4,196,042.85
to the Phase II
——Transferred
to the Phase III
——Transferred
back       to   the
Phase II
——Transferred
back       to   the
Phase I
Provision made
in the current                1,474,096.03        13,879,527.05           28,006,091.69         43,359,714.77
period
Amount

                                                         120
Konka Group Co., Ltd.                                                                  Interim Report 2022


                            Stage 1            Stage 2               Stage 3
                                           Expected loss in      Expected credit
   Bad debt             Expected credit     the duration          losses for the
                                                                                            Total
   provision            loss of the next       (credit           entire duration
                          12 months        impairment not          (with credit
                                              occurred)           impairment)
transferred back
in the current
year
Write-off
Verification
Other changes              1,126,318.79                                                     1,126,318.79

Balance as at 30
                          15,824,276.54     200,287,610.22        1,165,496,760.32     1,381,608,647.08
June 2022

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
                                                                           propor
                                            (%)
                                                                            tion
Other
receivables
with                    1,458,878,177.84    45.75     1,165,496,760.32         79.89     293,381,417.52
significant
individual

                                                    121
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                                                      Ending balance
                           Carrying amount                Bad debt provision
                                                                           Withd
   Category                                Propo
                                                                           rawal      Carrying value
                           Amount          rtion           Amount
                                                                           propor
                                           (%)
                                                                            tion
amount          and
make
independent
provision       for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according        to
credit         risks
characteristics
Aging group             1,469,772,683.19    46.10         200,523,262.91    13.64     1,269,249,420.28

Low-risk
                         259,741,170.94      8.15          15,588,623.85       6.00     244,152,547.09
group
Subtotal         of
                        1,729,513,854.13    54.25         216,111,886.76    12.50     1,513,401,967.37
groups
       Total            3,188,392,031.97   100.00     1,381,608,647.08      43.33     1,806,783,384.89

       (Continued)

                                                    Beginning balance
                           Carrying amount                Bad debt provision
                                                                           Withd
   Category                                Propo
                                                                           rawal      Carrying value
                           Amount          rtion           Amount
                                                                           propor
                                           (%)
                                                                            tion
Other
receivables
with                    1,458,258,132.07    45.97     1,137,490,668.63      78.00       320,767,463.44
significant
individual

                                                    122
Konka Group Co., Ltd.                                                                 Interim Report 2022



                                                    Beginning balance
                           Carrying amount                Bad debt provision
                                                                           Withd
   Category                                Propo
                                                                           rawal      Carrying value
                           Amount          rtion           Amount
                                                                           propor
                                           (%)
                                                                            tion
amount          and
make
independent
provision       for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according        to
credit         risks
characteristics
Aging group             1,494,744,336.27    47.13         188,949,294.11    12.64      1,305,795,042.16

Low-risk
                         219,006,768.03      6.90          10,682,650.78       4.88     208,324,117.25
group
Subtotal         of
                        1,713,751,104.30    54.03         199,631,944.89    11.65      1,514,119,159.41
groups
       Total            3,172,009,236.37   100.00     1,337,122,613.52      42.15      1,834,886,622.85

(4) Listed by aging

                        Aging                                         Ending balance
Within 1 year                                                                           886,676,703.44
1 to 2 years                                                                            681,614,764.99
2-3 years                                                                             1,154,159,125.09
3-4 years                                                                               233,236,498.87
4-5 years                                                                                 4,506,854.84
Over 5 years                                                                            228,198,084.74
Subtotal                                                                              3,188,392,031.97
Less: bad debt provision                                                              1,381,608,647.08
                        Total                                                         1,806,783,384.89


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 (5) Bad Debt Provision for Other Receivables

 The amount of bad debt provision for Reporting Period was RMB43,359,714.77, increasing
 RMB1,249,137.49 which was mainly due to exchange rate changes, decreasing RMB122,818.70
 which was mainly due to loss of control.

 (6) Other Receivables Actually Written off in the Reporting Period

 There were no other receivables actually written off in the Reporting Period.

 (7) Other Receivables with Top 5 Ending Balances Collected by Arrears Party

 The total amount of other receivables with top 5 ending balance collected by arrears party in the
 Reporting Period was RMB1,424,096,545.64, accounting for 44.67% of the total ending balance
 of other receivables. The total ending balance of bad debt provision correspondingly withdrawn
 was RMB390,808,329.07.

 (8) Other Receivables Derecognized due to the Transfer of Financial Assets

 There were no other receivables derecognized due to the transfer of financial assets during the
 Reporting Period.

 (9) Amount of Assets and Liabilities Formed due to the Transfer and the Continued Involvement
 of Other Receivables

There were no assets or liabilities formed due to the transfer and the continued involvement of
other receivables during the Reporting Period.

 8. Inventories

 (1) Category of Inventories

                                                          Ending balance
                                                         Inventory falling
                                                               price
        Item
                               Carrying balance         reserves/impairment      Carrying value
                                                        provision of contract
                                                         performance costs
 Real               estate
 development
 projects:
 Development cost                    24,421,591.35                                    24,421,591.35

         Subtotal                    24,421,591.35                                    24,421,591.35

 Non-real           eatate
 development projects:
 Raw materials                    1,213,593,412.99              63,109,874.71      1,150,483,538.28


                                                  124
Konka Group Co., Ltd.                                                                 Interim Report 2022


                                                          Ending balance
                                                          Inventory falling
                                                               price
     Item
                             Carrying balance           reserves/impairment          Carrying value
                                                        provision of contract
                                                         performance costs
Semi-finished products            173,645,401.11                35,883,710.08           137,761,691.03

Products on hand                 2,948,423,458.79              243,302,592.86          2,705,120,865.93
Contract    performance
                                      254,159.33                                             254,159.33
costs
       Subtotal                  4,335,916,432.22              342,296,177.65          3,993,620,254.57
           Total                 4,360,338,023.57              342,296,177.65          4,018,041,845.92




                                    Details of development cost
                                                           Estimated
                                                             next          Opening          Ending
               Item               On-stream time
                                                          completion       balance         balance
                                                             time


Konka (Haimen)’s project of
intelligent manufacturing base        June 2022            June 2024                     24,421,591.35
for electronic information
industry

     (Continued)

                                                         Beginning balance
                                                    Inventory falling price
           Item                                         reserves / impairment
                             Carrying amount                                         Carrying value
                                                        provision of contract
                                                         performance costs
Non-real           eatate
development
projects:
Raw materials                    1,300,321,549.53               56,921,789.83          1,243,399,759.70

Semi-finished products            188,626,889.60                36,212,915.54           152,413,974.06

Products on hand                 2,925,212,679.95              252,742,763.86          2,672,469,916.09
Contract performance                  254,159.33                                             254,159.33


                                                  125
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                                                        Beginning balance
                                                     Inventory falling price
            Item                                       reserves / impairment
                               Carrying amount                                     Carrying value
                                                       provision of contract
                                                        performance costs
 costs
         Subtotal                 4,414,415,278.41            345,877,469.23          4,068,537,809.18
            Total                 4,414,415,278.41            345,877,469.23          4,068,537,809.18

 (2) Inventory falling price reserves and impairment provision of contract performance costs

                                                                          Increased
            Item             Beginning balance
                                                            Withdrawal                   Other

 Raw materials                       56,921,789.83               8,438,000.83

 Semi-finished product               36,212,915.54                651,553.89

 Inventory goods                   252,742,763.86                4,220,434.03

 Contract     performance
 costs
            Total                  345,877,469.23              13,309,988.75

     (Continued)

                                              Decreased
            Item                                                                   Ending balance
                                  Write-off                    Other
 Raw materials                      2,016,763.74                  233,152.21             63,109,874.71
 Semi-finished product                 980,759.35                                        35,883,710.08
 Inventory goods                    12,870,905.06                  789,699.97           243,302,592.86
 Contract performance
 costs
            Total                   15,868,428.15                1,022,852.18           342,296,177.65

Specific basis for determining the realizable net value and reasons for inventory falling price
reserves and impairment provision for contract performance costs transferred back or written off
during the Reporting Period:

                                                                         Reasons for write-off of
                            Specific basis for withdrawal of
            Item                                                    inventory falling price reserves
                            inventory falling price reserves
                                                                         in the Reporting Period
                            The realizable net value was lower      They have been sold or collected
 Raw materials
                                  than the carrying value                in the Reporting Period
 Semi-finished              The realizable net value was lower      They have been sold or collected

                                                 126
Konka Group Co., Ltd.                                                                      Interim Report 2022



                                                                              Reasons for write-off of
                                Specific basis for withdrawal of
           Item                                                         inventory falling price reserves
                                inventory falling price reserves
                                                                              in the Reporting Period
products                             than the carrying value                   in the Reporting Period
                                The realizable net value was lower           They have been sold in the
Products on hand
                                     than the carrying value                      Reporting Period

9. Contractual assets

There were no contractual assets at the end of the Reporting Period.

10. Current Portion of Non-current Assets

              Item                         Ending balance               Beginning                Nature
                                                                           balance
Current portion of long-term                                                                 Finance leasing
                                                 28,493,943.14             28,105,523.78
receivable                                                                                       amount
              Total                              28,493,943.14             28,105,523.78

11. Other Current Assets

                        Item                                Ending balance               Beginning balance
Principal and interests of entrusted loans to
                                                                2,680,326,498.49           1,624,197,904.35
associated enterprises
Prepayments and deductible taxes, and
                                                                  638,536,197.81             649,198,781.95
refund of tax for export receivable
Costs receivable for returning goods                               19,225,630.83              21,501,882.70
Others                                                               4,778,089.47              5,064,822.24
                        Total                                   3,342,866,416.60           2,299,963,391.24

12. Long-term Receivables

(1) List of Long-term Receivables

                                                                        Ending balance
                        Item                               Carrying          Bad debt
                                                                                            Carrying value
                                                           amount            provision
Finance leasing amount                                     3,283,943.14                        3,283,943.14
Of which: unrealized financing income                          83,035.07                           83,035.07
Cash deposits of long-term receivables                  35,640,400.00                         35,640,400.00
Less: Current portion of long-term receivable
                                                        28,493,943.14                         28,493,943.14
See Note VI. 10 for details)
                        Total                           10,430,400.00                         10,430,400.00

                                                     127
Konka Group Co., Ltd.                                                           Interim Report 2022


     (Continued)

                                                              Beginning balance
                        Item                       Carrying         Bad debt
                                                                                Carrying value
                                                    amount          provision
Finance leasing amount                             10,960,622.92                   10,960,622.92
Of which: unrealized financing income                  390,068.94                      390,068.94
Cash deposits of long-term receivables             35,640,400.00                   35,640,400.00
Less:    Current    portion     of   long-term
receivable                                         28,105,523.78                   28,105,523.78
See Note VI. 10 for details)
                        Total                      18,495,499.14                   18,495,499.14




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13. Long-term Equity Investments

                                                                                        Increase/decrease
                                                                                                            Gains and losses   Adjustment of
            Investee               Opening balance     Additional         Investment     Cost method to       recognized           other
                                                       investment             reduced    equity method      under the equity   comprehensive
                                                                                                                method            income
Kangkong               Ventures
Development          (Shenzhen)         4,895,096.41                                                             -122,500.00
Co., Ltd.
Nanjing          Zhihuiguang
Information          Technology         1,642,793.07                                                                8,927.50
Research Institute Co., Ltd.
Feidi Technology (Shenzhen)
                                       10,468,555.83                                                             -171,200.00
Co., Ltd. and its subsidiaries
Shenzhen               Kangyue
                                       32,504,265.03                                                             -109,725.90
Enterprise Co., Ltd.
Foshan Pearl River Media
Creative      Park      Cultural        4,179,700.00                                                             -477,535.95
Development Co., Ltd.
Kangkai Technology Service
                                         228,931.64                                                               -93,330.23
(Chengdu) Co., Ltd.
Puchuang                Jiakang         1,836,583.36                                                            2,037,585.61



                                                                        129
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                                                                                          Increase/decrease
                                                                                                              Gains and losses   Adjustment of
            Investee                 Opening balance     Additional         Investment     Cost method to       recognized           other
                                                         investment             reduced    equity method      under the equity   comprehensive
                                                                                                                  method            income
Technology Co, Ltd.
Chongqing                 Qingjia
                                         15,034,341.13                                                             606,551.34
Electronics Co., Ltd.
Shenzhen                  Jielunte
                                         94,278,354.91                                                             -342,916.95
Technology Co., Ltd.
Panxu Intelligence Co., Ltd.             52,366,635.10                                                             314,310.00
Orient     Excellent     (Zhuhai)
                                          5,077,777.37                                                            3,388,170.30
Asset Management Co., Ltd.
Dongfang      Konka       No.   1
(Zhuhai)      Private      Equity       467,638,787.38     5,076,700.00                                          -1,190,792.65
Investment Fund (LP)
Tongxiang Wuzhen Kunyu
                                          3,528,077.43
Equity Investment Co., Ltd.
Shenzhen                RF-LINK
Technology Co., Ltd.
Anhui      Kaikai      Shijie   E-
                                        418,721,305.96
commerce Co., Ltd.
Kunshan                Kangsheng        317,101,869.51                                                           -4,747,257.35


                                                                          130
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                                                                                              Increase/decrease
                                                                                                                  Gains and losses   Adjustment of
            Investee                Opening balance     Additional         Investment          Cost method to       recognized           other
                                                        investment             reduced         equity method      under the equity   comprehensive
                                                                                                                      method            income
Investment       Development
Co., Ltd.
Chutian Dragon Co., Ltd.               647,490,626.93                      85,013,375.26                            13,641,260.41
Helongjiang Longkang Zhijia
                                         1,117,531.32                          1,157,647.82                             40,116.50
Technology Co., Ltd.
Shaanxi Silu Yunqi Smart
                                        14,113,227.58                                                                  183,461.77
Technology Co., Ltd.
Shenzhen        Kanghongxing
Smart Technology Co., Ltd.
Shenzhen Zhongbing Konka
Technology Co., Ltd.
Shenzhen       Bosser       New
                                        60,453,041.59                                                                 1,324,755.44
Materials Co., Ltd.
Shenzhen Yaode Technology
Co., Ltd.
Wuhan                  Tianyuan
Environmental          Protection      325,645,840.91                                                               11,179,621.33
Co., Ltd.


                                                                         131
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                                                                                       Increase/decrease
                                                                                                           Gains and losses   Adjustment of
            Investee              Opening balance     Additional         Investment     Cost method to       recognized           other
                                                      investment             reduced    equity method      under the equity   comprehensive
                                                                                                               method            income
Chuzhou Konka Technology
Industry Development Co.,             49,658,397.02                                                           -1,305,129.50
Ltd.
Chuzhou      Kangjin     Health
Industrial Development Co.,          118,122,798.37    24,500,000.00
Ltd.
Nantong                Kangjian
Technology Industrial Park
                                     116,294,808.94                                                             -588,275.99
Operations and Management
Co., Ltd.
Chuzhou      Kangxin     Health
Industry Development Co.,            185,277,588.25                                                           -1,370,767.86
Ltd.
Dongguan               Guankang
                                     539,103,920.30                                                          -12,145,407.83
Yuhong Investment Co., Ltd.
Shenzhen               Morsemi
Semiconductor     Technology           2,395,748.73                                                           -2,395,748.73
Co., Ltd.


                                                                       132
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                                                                                           Increase/decrease
                                                                                                               Gains and losses   Adjustment of
              Investee                Opening balance     Additional         Investment     Cost method to       recognized           other
                                                          investment             reduced    equity method      under the equity   comprehensive
                                                                                                                   method            income
Shandong Econ Technology
                                       1,024,944,000.00                                                          59,671,172.50
Co., Ltd.
Dongguan         Kangjia      New
Materials Technology Co.,                  6,920,620.00                                                             -451,280.15
Ltd.
Shenzhen E2info Network
                                       1,018,795,584.41                                                             574,782.45
Technology Co., Ltd.
Yantai Kangyun Industrial
                                          76,721,264.91                                                           -2,011,566.36
Development Co., Ltd.
E3 (Hainan) Technology Co.,
                                          58,715,678.97
Ltd.
Shenzhen        Konka       Jiapin
Intelligent              Electrical        3,921,788.17                                                             725,889.93
Apparatus Co., Ltd.
Shenzhen Konda E-display
                                          82,930,520.62                                                           -1,564,990.77
Co., Ltd.
Chongqing Yuanlv Benpao
                                          33,459,820.85                                                           -5,544,180.67
Real Estate Co., Ltd.


                                                                           133
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                                                                                        Increase/decrease
                                                                                                            Gains and losses   Adjustment of
            Investee               Opening balance     Additional         Investment     Cost method to       recognized           other
                                                       investment             reduced    equity method      under the equity   comprehensive
                                                                                                                method            income
Shenzhen Kangpeng Digital
                                        5,702,518.20                                                           -1,164,839.41
Technology Co., Ltd.
Yantai                 Kangtang
Construction     Development              17,740.49                                                              100,947.17
Co., Ltd.
Dongguan            Kangzhihui
                                       23,528,224.46                                                           -4,227,152.42
Electronics Co., Ltd.
Sichuan      Huayi       Jiakang
                                         339,893.32                                                              -161,494.44
Technology Co., Ltd.
Sichuan           Aimijiakang
                                        2,000,138.36                                                             -138,036.90
Technology Co., Ltd.
Beijing     Konka       Jingyuan
                                         766,290.97
Technology Co., Ltd.
Chongqing              Liangshan
Enterprise Management Co.,                53,673.48
Ltd.
Shenzhen                Kangene
                                         907,025.65                                                               51,821.26
Technology           Innovation


                                                                        134
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                                                                                         Increase/decrease
                                                                                                             Gains and losses   Adjustment of
            Investee              Opening balance     Additional         Investment       Cost method to       recognized           other
                                                      investment             reduced      equity method      under the equity   comprehensive
                                                                                                                 method            income
Development Co., Ltd.
Shandong Kangfei Intelligent
Electrical Appliances Co.,             1,478,689.46                                                             -1,113,706.55
Ltd.
Henan Kangfei Intelligent
Electrical Appliances Co.,             1,832,647.54                                                               -163,129.50
Ltd.
Runxin         Microelectronic
                                      47,509,494.92                      47,509,494.92
(Dalian) Co, Ltd.
Guangdong              Kangyuan
                                       9,214,309.08     6,680,000.00                                              -726,735.58
Semiconductor Co., Ltd.
Chongqing           Kangyiqing
                                        795,085.13                                                                 -82,240.22
Technology Co., Ltd.
Shenzhen               Kangying
Semiconductor       Technology        11,416,062.86     6,000,000.00                                            -1,080,619.83        -38,929.34
Co., Ltd.
KK Smartech Limited                    1,441,263.59
Shenzhen Konka Electrical


                                                                       135
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                                                                                            Increase/decrease
                                                                                                                 Gains and losses   Adjustment of
           Investee                 Opening balance     Additional          Investment       Cost method to        recognized           other
                                                        investment              reduced      equity method       under the equity   comprehensive
                                                                                                                     method             income
Appliances Co., Ltd.
Heifei KONSEMI Storage
                                                                                               204,000,000.00       -8,004,201.68
Technology Co., Ltd.
Sichuan      Chengrui      Real
                                                                                                43,120,000.00
Estate Co., Ltd.
Konka                 Industrial
Development (Wuhan) Co.,                                                                        45,000,000.00
Ltd.
             Total                   5,902,588,939.51    42,256,700.00     133,680,518.00      292,120,000.00       42,354,610.09         -38,929.34

       (Continued)

                                                             Increase/decrease
                                                        Cash bonus or     Withdrawal                                                Ending balance
            Investee                   Other equity        profits                of                            Ending balance      of impairment
                                                                                              Others
                                          changes       announced to      impairment                                                  provision
                                                            issue          provision
Kangkong                 Ventures
                                                                                                                    4,772,596.41
Development (Shenzhen) Co.,


                                                                          136
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                                                         Increase/decrease
                                                    Cash bonus or     Withdrawal                               Ending balance
            Investee                 Other equity      profits                of            Ending balance     of impairment
                                                                                   Others
                                       changes      announced to      impairment                                 provision
                                                        issue          provision
Ltd.
Nanjing              Zhihuiguang
Information          Technology                                                                 1,651,720.57
Research Institute Co., Ltd.
Feidi Technology (Shenzhen)
                                                                                               10,297,355.83
Co., Ltd. and its subsidiaries
Shenzhen Kangyue Enterprise
                                                                                               32,394,539.13
Co., Ltd.
Foshan Pearl      River    Media
Creative      Park        Cultural                                                              3,702,164.05
Development Co., Ltd.
Kangkai Technology Service
                                                                                                  135,601.41
(Chengdu) Co., Ltd.
Puchuang Jiakang Technology
                                                                                                3,874,168.97
Co, Ltd.
Chongqing Qingjia Electronics
                                                                                               15,640,892.47
Co., Ltd.
Shenzhen Jielunte Technology                                                                   93,935,437.96


                                                                      137
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                                                          Increase/decrease
                                                     Cash bonus or     Withdrawal                               Ending balance
             Investee                 Other equity      profits                of            Ending balance     of impairment
                                                                                    Others
                                        changes      announced to      impairment                                 provision
                                                         issue          provision
Co., Ltd.
Panxu Intelligence Co., Ltd.                                                                    52,680,945.10
Orient      Excellent      (Zhuhai)
                                                                                                 8,465,947.67
Asset Management Co., Ltd.
Dongfang       Konka       No.   1
(Zhuhai)       Private       Equity                                                            471,524,694.73
Investment Fund (LP)
Tongxiang      Wuzhen        Kunyu
                                                                                                 3,528,077.43
Equity Investment Co., Ltd.
Shenzhen                  RF-LINK
                                                                                                                  85,656,027.35
Technology Co., Ltd.
Anhui       Kaikai      Shijie   E-
                                                                                               418,721,305.96
commerce Co., Ltd.
Kunshan                  Kangsheng
Investment Development Co.,                                                                    312,354,612.16
Ltd.
Chutian Dragon Co., Ltd.                               4,410,993.60                            571,707,518.48
Helongjiang Longkang Zhijia


                                                                       138
Konka Group Co., Ltd.                                     Interim Report 2022



                                                           Increase/decrease
                                                      Cash bonus or     Withdrawal                               Ending balance
            Investee                   Other equity      profits                of            Ending balance     of impairment
                                                                                     Others
                                         changes      announced to      impairment                                 provision
                                                          issue          provision
Technology Co., Ltd.
Shaanxi     Silu    Yunqi     Smart
                                                                                                 14,296,689.35
Technology Co., Ltd.
Shenzhen Kanghongxing Smart
                                                                                                                   12,660,222.73
Technology Co., Ltd.
Shenzhen Zhongbing Konka
Technology Co., Ltd.
Shenzhen           Bosser       New
                                                                                                 61,777,797.03     18,536,771.07
Materials Co., Ltd.
Shenzhen Yaode Technology
                                                                                                                  214,559,469.35
Co., Ltd.
Wuhan                       Tianyuan
Environmental Protection Co.,                           2,770,200.00                            334,055,262.24
Ltd.
Chuzhou Konka Technology
Industry    Development         Co.,                                                             48,353,267.52
Ltd.
Chuzhou       Kangjin         Health                                                            142,622,798.37


                                                                        139
Konka Group Co., Ltd.                                    Interim Report 2022



                                                          Increase/decrease
                                                     Cash bonus or     Withdrawal                                Ending balance
            Investee               Other equity         profits                of            Ending balance      of impairment
                                                                                    Others
                                     changes         announced to      impairment                                  provision
                                                         issue          provision
Industrial Development Co.,
Ltd.
Nantong Kangjian Technology
Industrial Park Operations and                                                                 115,706,532.95
Management Co., Ltd.
Chuzhou      Kangxin      Health
Industry    Development     Co.,                                                               183,906,820.39
Ltd.
Dongguan Guankang Yuhong
                                                                                               526,958,512.47
Investment Co., Ltd.
Shenzhen                Morsemi
Semiconductor         Technology
Co., Ltd.
Shandong Econ Technology
                                    135,296,760.09                                            1,219,911,932.59
Co., Ltd.
Dongguan      Kangjia       New
                                                                                                 6,469,339.85
Materials Technology Co., Ltd.
Shenzhen     E2info     Network                                                               1,019,370,366.86


                                                                       140
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                                                         Increase/decrease
                                                    Cash bonus or     Withdrawal                               Ending balance
             Investee                Other equity      profits                of            Ending balance     of impairment
                                                                                   Others
                                       changes      announced to      impairment                                 provision
                                                        issue          provision
Technology Co., Ltd.
Yantai      Kangyun     Industrial
                                                                                               74,709,698.55
Development Co., Ltd.
E3 (Hainan) Technology Co.,
                                                                                               58,715,678.97
Ltd.
Shenzhen       Konka       Jiapin
Intelligent Electrical Apparatus                                                                4,647,678.10
Co., Ltd.
Shenzhen      Konda     E-display
                                                                                               81,365,529.85
Co., Ltd.
Chongqing      Yuanlv     Benpao
                                                                                               27,915,640.18
Real Estate Co., Ltd.
Shenzhen Kangpeng Digital
                                                                                                4,537,678.79
Technology Co., Ltd.
Yantai Kangtang Construction
                                                                                                  118,687.66
Development Co., Ltd.
Dongguan              Kangzhihui
                                                                                               19,301,072.04
Electronics Co., Ltd.


                                                                      141
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                                                         Increase/decrease
                                                    Cash bonus or     Withdrawal                               Ending balance
            Investee                 Other equity      profits                of            Ending balance     of impairment
                                                                                   Others
                                       changes      announced to      impairment                                 provision
                                                        issue          provision
Sichuan      Huayi       Jiakang
                                                                                                  178,398.88
Technology Co., Ltd.
Sichuan              Aimijiakang
                                                                                                1,862,101.46
Technology Co., Ltd.
Beijing     Konka       Jingyuan
                                                                                                  766,290.97
Technology Co., Ltd.
Chongqing              Liangshan
Enterprise Management Co.,                                                                         53,673.48
Ltd.
Shenzhen Kangene Technology
Innovation Development Co.,                                                                       958,846.91
Ltd.
Shandong Kangfei Intelligent
                                                                                                  364,982.91
Electrical Appliances Co., Ltd.
Henan     Kangfei      Intelligent
                                                                                                1,669,518.04
Electrical Appliances Co., Ltd.
Runxin         Microelectronic
(Dalian) Co, Ltd.


                                                                      142
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                                                           Increase/decrease
                                                      Cash bonus or     Withdrawal                                Ending balance
             Investee                Other equity        profits                of            Ending balance      of impairment
                                                                                     Others
                                        changes       announced to      impairment                                  provision
                                                          issue          provision
Guangdong               Kangyuan
                                                                                                  15,167,573.50
Semiconductor Co., Ltd.
Chongqing             Kangyiqing
                                                                                                     712,844.91
Technology Co., Ltd.
Shenzhen                Kangying
Semiconductor         Technology                                                                  16,296,513.69
Co., Ltd.
KK Smartech Limited                                                                                1,441,263.59
Shenzhen      Konka     Electrical
                                                                                                                    10,732,484.69
Appliances Co., Ltd.
Heifei      KONSEMI       Storage
                                                                                                 195,995,798.32
Technology Co., Ltd.
Sichuan Chengrui Real Estate
                                                                                                  43,120,000.00
Co., Ltd.
Konka Industrial Development
                                                                                                  45,000,000.00
(Wuhan) Co., Ltd.
              Total                  135,296,760.09   7,181,193.60                            6,273,716,368.75    342,144,975.19



                                                                        143
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14. Investment in Other Equity Instruments

(1) Investment in Other Equity Instruments

                                    Item                                           Ending balance            Opening balance
Shenzhen Tianyilian Science & Technology Co., Ltd.
Shenzhen Adopt Network Co., Ltd.
Beijing Huyu Digital Technology Co., Ltd.                                                     5,901,121.80               5,901,121.80
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., Ltd.                                 7,726,405.16               7,726,405.16
Shanghai National Engineering Research Center of Digital TV Co., Ltd.                         2,400,000.00               2,400,000.00
Bohu UHD                                                                                      5,000,001.00               5,000,001.00
                                    Total                                                    23,841,337.16              23,841,337.16

(2) Investment in Non-trading Equity Instruments in the Reporting Period




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                                                                                                                                       Reason for other
                                                                                        Amount of other     Reason for assigning to
                                           Dividend                                                                                    comprehensive
                                                                                         comprehensive      measure in fair value of
                                            income      Accumulati    Accumulative                                                         income
               Item                                                                          income         which changes included
                                           recognized    ve gains         losses                                                        transferred to
                                                                                         transferred to      other comprehensive
                                           this year                                                                                       retained
                                                                                        retained earnings           income
                                                                                                                                          earnings
Shenzhen    Tianyilian    Science     &                                                                     Long-term holding based
                                                                         4,800,000.00
Technology Co., Ltd.                                                                                        on strategic purpose
                                                                                                            Long-term holding based
Shenzhen Adopt Network Co., Ltd.                                         5,750,000.00
                                                                                                            on strategic purpose
Beijing Huyu Digital Technology                                                                             Long-term holding based
                                                                            98,878.20
Co., Ltd.                                                                                                   on strategic purpose
                                                                                                            Long-term holding based
Feihong Electronics Co., Ltd.                                            1,300,000.00
                                                                                                            on strategic purpose
                                                                                                            Long-term holding based
ZAEFI                                                                      100,000.00
                                                                                                            on strategic purpose
Shenzhen    Chuangce          Investment                                                                    Long-term holding based
                                                                           485,000.00
Development Co., Ltd.                                                                                       on strategic purpose
Shanlian Information Technology                                                                             Long-term holding based
                                                                         3,139,190.80
Engineering Center                                                                                          on strategic purpose
Shenzhen      CIU        Science      &                                                                     Long-term holding based
                                                                           200,000.00
Technology Co., Ltd.                                                                                        on strategic purpose
Shenzhen    Digital      TV     National                                 1,273,594.84                       Long-term holding based


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                                                                                                                                Reason for other
                                                                                 Amount of other     Reason for assigning to
                                      Dividend                                                                                  comprehensive
                                                                                  comprehensive      measure in fair value of
                                       income      Accumulati    Accumulative                                                       income
               Item                                                                   income         which changes included
                                      recognized    ve gains         losses                                                      transferred to
                                                                                  transferred to      other comprehensive
                                      this year                                                                                     retained
                                                                                 retained earnings           income
                                                                                                                                   earnings
Engineering Laboratory Co., Ltd.                                                                     on strategic purpose
Shanghai    National    Engineering
                                                                                                     Long-term holding based
Research Center of Digital TV Co.,
                                                                                                     on strategic purpose
Ltd.
                                                                                                     Long-term holding based
Bohu UHD
                                                                                                     on strategic purpose
               Total                                             17,146,663.84




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15. Other Non-current Financial Assets

                    Item                                  Ending balance         Opening balance
China Asset Management-Jiayi Overseas Designated
                                                              200,326,093.02        200,326,093.02
Plan
Yibin OCT Sanjiang Properties 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
                                                              183,220,392.92         88,186,078.16
Fund Partnership (Limited Partnership)
Tongxiang Wuzhen Jiayu Digital Economy Industry
                                                              198,266,889.53        118,266,889.53
Equity Investment Partnership (Limited Partnership)
Yibin Kanghui Electronic Information Industry Equity
                                                              104,185,495.56        116,086,430.82
Investment Partnership (Limited Partnership)
Chuzhou Jiachen Information Technology Consulting
                                                               59,700,130.13         52,200,130.13
Service Partnership (Limited Partnership)
Yancheng Kangyan Information Industry Investment
                                                              179,245,424.89        225,680,330.93
Partnership (Limited Partnership)
Chongqing Kangxin Equity Investment Fund Limited
                                                              148,132,905.61        100,882,805.61
Partnership (Limited Partnership)
Shenzhen Kanghuijia Technology Co., Ltd.                             9,273.31                9,273.31
          Subtotal of equity investments          1,363,086,604.97   1,191,638,031.51
Chuzhou Huike Smart Household Appliances Industry
                                                      864,706,665.04    890,768,440.22
Investment Partnership (Limited Partnership)
Ningbo Yuanqing No. 9 Investment Partnership                  148,855,198.11        134,671,492.89
Shenzhen Beihu Technology Partnership (Limited
                                                               58,000,000.00         58,000,000.00
Partnership)
Xi'an Bihui Enterprise Management Consulting
                                                                  7,163,411.30
Partnership (Limited Partnership)
Henan Chuangxing Enterprise Management Center
                                                               18,283,639.06         18,283,639.06
(Limited Partnership)
            Subtotal of debt investments                  1,097,008,913.51       1,101,723,572.17
                            Total                         2,460,095,518.48       2,293,361,603.68

16. Investment Properties

(1) Investment Properties Measured at Cost


             Item                   Houses, buildings and lands                  Total

I. Original carrying value
1. Beginning balance                              871,572,633.64                    871,572,633.64

2. Increase in the period                             8,531,405.75                       8,531,405.75

(1) Outsourcing                                       8,531,405.75                       8,531,405.75

(2) Fixed assets\Construction

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               Item                  Houses, buildings and lands               Total

in      progress\Transfer       of
intangible assets
3. Decrease in the period
(1) Disposal
(2) Other transfer out
4. Ending balance                                   880,104,039.39                880,104,039.39

II.      The          accumulative
depreciation and accumulative
amortization
1.    Beginning balance                                95,047,572.10               95,047,572.10

2. Increase in the period                              10,195,579.58               10,195,579.58

(1) Provision or amortization                          10,195,579.58               10,195,579.58

3.    Decrease in the period
(1) Disposal
(2) Other transfer out
4.    Ending balance                                105,243,151.68                105,243,151.68

III. Depreciation reserves
1.    Beginning balance
2. Increase in the period
(1) Withdrawal
3.    Decrease in the period
(1) Disposal
(2) Other transfer out
4.    Ending balance
IV. Carrying value
1.    Ending carrying value                         774,860,887.71                774,860,887.71

2.    Beginning carrying value                      776,525,061.54                776,525,061.54

(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


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               Item                       Carrying value                       Reason
Konka      Standard      Electronic                               Settlement of the project is
Product      Plants    Project   in                               underway, and the certificate
                                                 267,441,842.65
Sunning                                                           can be handled only after the
                                                                  settlement
               Total                             267,441,842.65

17. Fixed Assets

               Item                    Ending carrying value        Opening carrying value
Fixed Assets                                   3,960,662,993.10              4,010,295,277.14
Fixed      assets     pending    for
disposal
               Total                           3,960,662,993.10                 4,010,295,277.14




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17.1 Fixed Assets

(1) List of Fixed Assets

                               Houses and         Machinery                Electronic        Transportation
           Item                                                                                                Other machinery       Total
                                buildings         equipment                equipment           equipment
I.    Original      carrying
value
1. Opening balance             2,529,405,574.18   2,966,454,406.17     240,354,786.94          59,322,549.91     351,086,303.85   6,146,623,621.05
2. Increased amount of
                                    554,837.61     139,199,350.07           15,476,408.96        940,240.50        7,680,391.78    163,851,228.92
the period
(1) Purchase                        554,837.61      90,478,956.65           11,492,772.94        940,240.50        6,861,763.42    110,328,571.12
(2)      Transfer      from
                                                    48,715,641.21            3,958,811.75                            818,628.36     53,493,081.32
construction in progress
(3)     Increase    through
consolidation
(4) Other transfer-in                                     4,752.21               24,824.27                                              29,576.48
3. Decreased amount of
                                                    31,225,252.01           13,536,766.23       1,183,135.47       3,159,092.85     49,104,246.56
the period
(1) Disposal or scrap                               31,223,452.01            3,070,738.72        826,996.62        1,903,957.35     37,025,144.70
(2) Decrease for loss of
                                                                            10,466,027.51        356,138.85                         10,822,166.36
controlling right
(3) Other decreases                                       1,800.00                                                 1,255,135.50       1,256,935.50
4. Ending balance              2,529,960,411.79   3,074,428,504.23     242,294,429.67          59,079,654.94     355,607,602.78   6,261,370,603.41


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                              Houses and        Machinery                Electronic         Transportation
            Item                                                                                              Other machinery       Total
                              buildings         equipment                equipment            equipment
II.          Accumulative
depreciation
1. Opening balance             593,988,005.87   1,083,045,070.75     157,322,088.50           40,593,276.19     210,886,326.73   2,085,834,768.04
2. Increased amount of
                                42,245,682.55    128,024,562.48            9,455,863.91        2,677,542.74      17,847,865.27    200,251,516.95
the period
(1) Withdrawal                  42,245,682.55    128,024,562.48            9,455,863.91        2,677,542.74      17,847,865.27    200,251,516.95
(2)    Increase     through
consolidation
(3) Other increase
3. Decreased amount of
                                                  26,838,792.02            6,347,929.60         901,301.09        1,455,498.45     35,543,521.16
the period
(1) Disposal or scrap                             26,838,792.02            2,739,973.81         709,579.66        1,455,498.45     31,743,843.94
(2) Decrease for loss of
                                                                           3,607,955.79         191,721.43                           3,799,677.22
controlling right
(3) Other decreases
4. Ending balance              636,233,688.42   1,184,230,841.21     160,430,022.81           42,369,517.84     227,278,693.55   2,250,542,763.83
III.           Impairment
provision
1. Opening balance               1,247,805.91     42,710,420.48                638,396.94       820,770.14        5,076,182.40     50,493,575.87
2. Increased amount of
the period

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                            Houses and         Machinery                Electronic         Transportation
         Item                                                                                                Other machinery       Total
                             buildings         equipment                equipment            equipment
(1) Withdrawal
3. Decreased amount of
                                                    328,729.39                                                                       328,729.39
the period
(1) Disposal or scrap                               328,729.39                                                                       328,729.39
(2) Other decrease
4. Ending balance              1,247,805.91      42,381,691.09                638,396.94       820,770.14        5,076,182.40     50,164,846.48
IV. Carrying value
1.   Ending      carrying
                            1,892,478,917.46   1,847,815,971.93          81,226,009.92       15,889,366.96     123,252,726.83   3,960,662,993.10
value
2.   Opening     carrying
                            1,934,169,762.40   1,840,698,914.94          82,394,301.50       17,908,503.58     135,123,794.72   4,010,295,277.14
value




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(2) List of Temporarily Idle Fixed Assets

                                Original            Accumulated            Impairment
         Item                                                                                  Carrying value
                             carrying value         depreciation            provision
Machinery
                               26,665,441.34         15,169,018.99           1,540,311.51         9,956,110.84
equipment
Electronic
                                5,783,766.22          4,605,666.17               1,704.25         1,176,395.80
equipment
Transportation
                                1,031,130.24            631,767.99                                  399,362.25
equipment
Houses               and
                                    449,070.15          218,921.63                                  230,148.52
buildings
Other machinery                     937,012.55          796,762.90              26,675.22           113,574.43
         Total                 34,866,420.50         21,422,137.68           1,568,690.98        11,875,591.84

(3) Fixed Assets Leased out from Operation Lease

                             Item                                          Ending carrying value
Electronic equipment                                                                           1,015,317.27
Machinery equipment                                                                              18,888,747.25
Other machinery                                                                                     675,076.11
Transportation equipment                                                                            120,877.43

                             Total                                                               20,700,018.06

(4) Details of Fixed Assets Failed to Accomplish Certification of Property

                                                                   Imp
                                                                   airm
                            Original             Accumulated                  Net carrying
      Item                                                         ent                               Reason
                       carrying value            depreciation                     value
                                                                   prov
                                                                   ision
Ankang's                                                                                              Being
                           601,722,965.12        12,757,162.38                 588,965,802.74
plants                                                                                               handled
Bokang's
phase           II
plants on the
                                                                                                      Being
second       and            33,584,624.73         1,511,308.11                  32,073,316.62
                                                                                                     handled
third     floors
for      printed
boards


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                                                          Imp
                                                          airm
                         Original        Accumulated                Net carrying
      Item                                                ent                           Reason
                      carrying value      depreciation                 value
                                                          prov
                                                          ision
Jingyuan
                                                                                         Being
Building                  7,700,000.00     3,984,736.14               3,715,263.86
                                                                                        handled
property
Yikang
                                                                                         Being
Building                 76,610,752.33    39,490,429.63              37,120,322.70
                                                                                        handled
property
      Total             719,618,342.18    57,743,636.26             661,874,705.92

(5) Fixed Assets with Restricted Ownership or Use Right

                Item                     Ending carrying value          Reason for restriction
Housing       and     buildings   of
                                                   147,633,213.09       Mortgaged for billing
Anhui Tongchuang
Machinery           equipment     of
                                                    52,519,955.06     Financing lease mortgage
Jiangxi Konka
Machinery           equipment     of
                                                   107,428,880.84      Finance lease mortgage
Xinfeng Microcrystalline
Housing       and     buildings   of
                                                    88,015,544.30           Mortgage loan
Frestec Refrigeration
Buildings of Konka Group                            77,229,221.63           Mortgage loan
Housing       and     buildings   of
                                                    35,852,318.78           Mortgage loan
XingDa HongYe
Anhui Konka's buildings                            620,841,156.45           Mortgage loan
Machinery           equipment     of
                                                    18,874,840.71      Finance lease mortgage
Xingda Hongye
Machinery           equipment     of
                                                    10,232,197.90      Finance lease mortgage
Boluo Konka Precision
Smart machinery equipment
and     other       equipment     of                39,453,997.39           Mortgage loan
Jiangsu Konka
                Total                            1,198,081,326.15

18. Construction in progress

                Item                        Ending balance                Opening balance

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            Item           Ending balance          Opening balance
Construction in progress        1,781,601,493.64        1,490,777,831.39
            Total               1,781,601,493.64        1,490,777,831.39




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18.1. Construction in Progress

(1) List of Construction in Progress

                                                          Ending balance                                                     Opening balance
             Item                                           Impairment                                                         Impairment
                                     Carrying balance                         Carrying value             Carrying balance                      Carrying value
                                                             provision                                                          provision
Infrastructure      Project     of
Chongqing                   Konka
Semiconductor
                                         373,732,053.92                              373,732,053.92         319,259,613.46                       319,259,613.46
Optoelectronics          Research
Institute (Part I, Part II and
Part III)
Guangming Project                        317,212,905.91                              317,212,905.91         282,501,390.70                       282,501,390.70

Jiangxi      High-permeability
                                         246,576,748.57                              246,576,748.57         246,576,748.57                       246,576,748.57
Crystalization Kiln
Dongguan          Konka       New
                                         273,664,531.39                              273,664,531.39         163,155,903.72                       163,155,903.72
Industrial Park
Construction       of     Suining
Electronic     Industrial     Park       127,628,772.27                              127,628,772.27         112,187,404.92                       112,187,404.92
Workshops
R&D equipment construction
                                          27,876,511.11                                  27,876,511.11       26,273,554.58                        26,273,554.58
project      of         Chongqing


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                                                              Ending balance                                                      Opening balance
              Item                                              Impairment                                                          Impairment
                                    Carrying balance                               Carrying value            Carrying balance                         Carrying value
                                                                 provision                                                           provision
Optoelectronic       Technology
Research Institute
Medical engineering project
                                              94,708,620.41                                  94,708,620.41       26,471,040.49                           26,471,040.49
of Yibin Kangrun

Other projects                            320,528,936.27            327,586.21           320,201,350.06         314,679,761.16          327,586.21      314,352,174.95

             Total                      1,781,929,079.85            327,586.21         1,781,601,493.64        1,491,105,417.60         327,586.21     1,490,777,831.39

(2) Changes of Significant Construction in Progress this period

                                                                                                              Decrease in this period
             Name of item                       Opening balance       Increase in this period Transferred to long-                                   Ending balance
                                                                                                                             Other decrease
                                                                                                        term assets
Infrastructure Project of Chongqing
Konka                     Semiconductor
                                                     319,259,613.46             54,472,440.46                                                           373,732,053.92
Optoelectronics      Research     Institute
(Part I, Part II and Part III)
Guangming Project                                    282,501,390.70             34,711,515.21                                                           317,212,905.91

Jiangxi               High-permeability
                                                     246,576,748.57                                                                                     246,576,748.57
Crystalization Kiln
Dongguan Konka New Industrial Park                   163,155,903.72            110,508,627.67                                                           273,664,531.39


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                                                                                                          Decrease in this period
             Name of item                    Opening balance          Increase in this period Transferred to long-                                   Ending balance
                                                                                                                         Other decrease
                                                                                                  term assets
Construction of Suining Electronic
                                                    112,187,404.92            16,582,875.96                                       1,141,508.61           127,628,772.27
Industrial Park Workshops
R&D equipment construction project
of       Chongqing         Optoelectronic            26,273,554.58            24,028,303.89           22,419,073.78                   6,273.58            27,876,511.11
Technology Research Institute
Medical engineering project of Yibin
                                                     26,471,040.49            68,237,579.92                                                               94,708,620.41
Kangrun
                   Total                           1,176,425,656.44          308,541,343.11           22,419,073.78               1,147,782.19         1,461,400,143.58

     (Continued)

                                                     Proportion                                                 Of which: the
                                                                                            Accumulated                           Capitalization
                                                   estimated of the                                             amount of the
                             Estimated number                            Engineering          amount of                             rate of the
       Name of item                                    project                                                   capitalized                         Capital resources
                             (RMB100 million)                            Schedule (%)          interest                           interests of the
                                                    accumulative                                               interests of the
                                                                                            capitalization                          period (%)
                                                      input (%)                                                    period
Infrastructure     Project
of Chongqing Konka
Semiconductor                               7.16                 52.20              52.20                                                            Self-owned fund
Optoelectronics
Research Institute (Part

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                                                     Proportion                                               Of which: the
                                                                                            Accumulated                          Capitalization
                                                   estimated of the                                           amount of the
                                Estimated number                         Engineering         amount of                             rate of the
     Name of item                                      project                                                  capitalized                         Capital resources
                                (RMB100 million)                         Schedule (%)          interest                          interests of the
                                                    accumulative                                              interests of the
                                                                                            capitalization                        period (%)
                                                      input (%)                                                   period
I, Part II and Part III)
Guangming Project                                                                                                                                Self-owned      fund
                                            5.33                 59.66              59.66     15,576,085.78      6,292,175.31               7.90 and project loans

Jiangxi             High-
                                                                                                                                                    Self-owned    fund
permeability                                3.40                 72.52              72.52     32,249,994.16
                                                                                                                                                    and bank financing
Crystalization Kiln
Dongguan Konka New                                                                                                                                  Self-owned    fund
                                            3.90                 70.17              70.17      9,621,050.14      3,848,525.92               4.80
Industrial Park                                                                                                                                     and bank financing
Construction               of
Suining        Electronic
                                            7.04                 47.82              47.82                                                           Self-owned fund
Industrial            Park
Workshops
R&D            equipment
construction project of
Chongqing
                                            7.08                 87.55              87.55                                                           Self-owned fund
Optoelectronic
Technology        Research
Institute

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                                                Proportion                                               Of which: the
                                                                                       Accumulated                          Capitalization
                                              estimated of the                                           amount of the
                           Estimated number                         Engineering         amount of                             rate of the
    Name of item                                  project                                                  capitalized                         Capital resources
                           (RMB100 million)                         Schedule (%)          interest                          interests of the
                                               accumulative                                              interests of the
                                                                                       capitalization                        period (%)
                                                 input (%)                                                   period
Medical      engineering
                                                                                                                                            Self-owned     fund
project     of    Yibin                2.17                 43.64              10.18          3,702.78           3,702.78              4.30 and bank financing
Kangrun
          Total                                                                          57,450,832.86     10,144,404.01




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19. Right-of-use assets

                          Houses and       Electronic     Transportatio
         Item                                                                      Total
                          buildings        equipment      n equipment
I. Original carrying
value
1. Opening balance        114,397,549.47     310,725.66       832,266.36        115,540,541.49

2.           Increased
                           27,756,971.83                                         27,756,971.83
amount this period
(1) Rent                   27,756,971.83                                         27,756,971.83

(2) Others
3.          Decreased
                            2,294,543.18                      832,266.36          3,126,809.54
amount this period
(1) Decrease for
loss of controlling          887,522.59                                             887,522.59
right
(2) Others                  1,407,020.59                      832,266.36          2,239,286.95

4. Ending balance         139,859,978.12     310,725.66                         140,170,703.78

II.     Accumulative
depreciation
1. Opening balance         43,734,529.28      31,072.56       564,524.28         44,330,126.12

2.           Increased
                           28,358,861.38      31,072.56       267,742.08         28,657,676.02
amount this period
(1) Withdrawal             28,358,861.38      31,072.56       267,742.08         28,657,676.02

(2) Others
3.          Decreased
                            1,271,967.98                      832,266.36          2,104,234.34
amount this period
(1) Decrease for
loss of controlling          443,761.31                                             443,761.31
right
(2) Others                   828,206.67                       832,266.36          1,660,473.03

4. Ending balance          70,821,422.68      62,145.12                          70,883,567.80

III.       Impairment
provision
1. Opening balance
2.           Increased
amount this period


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                        Houses and       Electronic     Transportatio
        Item                                                                     Total
                        buildings        equipment      n equipment
(1) Withdrawal
3.       Decreased
amount this period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
                         69,038,555.44     248,580.54                          69,287,135.98
value
2.         Opening
                         70,663,020.19     279,653.10       267,742.08         71,210,415.37
carrying value




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20. Intangible Assets

(1) List of intangible assets

                                                                      Intellectual property
                                                                                              Right to use
      Item         Land use right    Trademark       Patent and              Franchise                                               Total
                                                                                              software and        Subtotal
                                       right          know-how                   rights
                                                                                                 others
I.      Original
carrying
value
1.     Opening
                   927,878,747.71    75,609,671.41   163,217,317.78                            128,853,938.95   367,680,928.14   1,295,559,675.85
balance
2. Increased
amount of the        12,171,519.15                                                               8,969,810.89     8,969,810.89     21,141,330.04
period
(1) Purchase         12,171,519.15                                                               7,490,782.69     7,490,782.69     19,662,301.84
(2)     Transfer
from
                                                                                                 1,479,028.20     1,479,028.20       1,479,028.20
construction
in progress
(3)     Transfer
from R&D
(4)     Increase


                                                                           163
Konka Group Co., Ltd.                                Interim Report 2022



                                                                      Intellectual property
                                                                                              Right to use
      Item          Land use right   Trademark       Patent and              Franchise                                               Total
                                                                                              software and        Subtotal
                                       right          know-how                   rights
                                                                                                 others
through
consolidation
(5)       Other
reasons
3. Decreased
amount of the                                         15,000,000.00                               309,734.51     15,309,734.51     15,309,734.51
period
(1) Disposal
(2) Decrease
for     loss   of
                                                      15,000,000.00                               309,734.51     15,309,734.51     15,309,734.51
controlling
right
(3) Decrease
for        other
reasons
4.       Ending
                    940,050,266.86   75,609,671.41   148,217,317.78                            137,514,015.33   361,341,004.52   1,301,391,271.38
balance
II.
Accumulated


                                                                           164
Konka Group Co., Ltd.                                 Interim Report 2022



                                                                       Intellectual property
                                                                                               Right to use
      Item          Land use right    Trademark       Patent and              Franchise                                             Total
                                                                                               software and        Subtotal
                                        right          know-how                   rights
                                                                                                  others
amortization
1.      Opening
                      83,549,162.11   17,998,848.90   108,112,881.20                             68,896,878.23   195,008,608.33   278,557,770.44
balance
2. Increased
amount of the         10,877,110.38    2,293,522.69     2,672,123.29                              7,111,970.33    12,077,616.31    22,954,726.69
period
(1)
                      10,877,110.38    2,293,522.69     2,672,123.29                              7,111,970.33    12,077,616.31    22,954,726.69
Withdrawal
(2)       Other
increases
3. Decreased
amount of the                                          12,916,666.68                                 73,930.67    12,990,597.35    12,990,597.35
period
(1) Disposal
(2) Decrease
for     loss   of
                                                       12,916,666.68                                 73,930.67    12,990,597.35    12,990,597.35
controlling
right
(3) Decrease


                                                                            165
Konka Group Co., Ltd.                                Interim Report 2022



                                                                      Intellectual property
                                                                                              Right to use
       Item        Land use right    Trademark       Patent and              Franchise                                             Total
                                                                                              software and        Subtotal
                                       right          know-how                   rights
                                                                                                 others
for        other
reasons
4.       Ending
                     94,426,272.49   20,292,371.59    97,868,337.81                             75,934,917.89   194,095,627.29   288,521,899.78
balance
III.
Impairment
provision
1.     Opening
                                                      41,705,989.33                                              41,705,989.33    41,705,989.33
balance
2. Increased
amount of the
period
(1)
Withdrawal
(2) Business
Combination
Increase
3. Decreased
amount of the


                                                                           166
Konka Group Co., Ltd.                                Interim Report 2022



                                                                      Intellectual property
                                                                                              Right to use
      Item          Land use right   Trademark       Patent and              Franchise                                             Total
                                                                                              software and        Subtotal
                                       right          know-how                   rights
                                                                                                 others
period
(1) Disposal
(2) Decrease
for     loss   of
controlling
right
4.       Ending
                                                      41,705,989.33                                              41,705,989.33    41,705,989.33
balance
IV. Carrying
value
1.       Ending
carrying            845,623,994.37   55,317,299.82     8,642,990.64                             61,579,097.44   125,539,387.90   971,163,382.27
value
2.      Opening
carrying            844,329,585.60   57,610,822.51    13,398,447.25                             59,957,060.72   130,966,330.48   975,295,916.08
value




                                                                           167
Konka Group Co., Ltd.                                                                  Interim Report 2022


(2) Land Use Right with Certificate of Title Uncompleted

              Item                               Carrying value                        Reason
 Land use right of the subsidiary
                                                            5,071,349.33           Being handled
 Nano-Grystallized Glass

(3) Significant Intangible Assets

                                                                            Remaining amortization period
                  Item                         Ending carrying value
                                                                                        (year)
Land usage right of Fenggang
                                                        191,936,448.67                  47.17
Konka Intelligent Industrial Park
Land of Frestec Smart Home
                                                            93,164,251.54               48.25
Industrial Park
Land    usage      right   of        Frestec
                                                            66,764,392.50               34.25
Refrigeration
Land use right of Konka Huanjia                             63,856,832.12               47.00

Land     use       right        of       the
semiconductor & optoelectronics                             59,884,651.52               47.17
industrial park

(4) Intangible Assets with Restricted Ownership or Using Right

                  Item                         Ending carrying value            Reason for restriction
Land use right of Dongguan                                                         Mortgage loan
                                                        191,936,448.67
Konka
Land use right of Anhui Konka                               55,673,956.00          Mortgage loan
Land usage right of Frestec                                                        Mortgage loan
                                                            66,764,392.50
Refrigeration
Land use right of Anhui                                                         Mortgaged for billing
                                                            18,188,977.93
Tongchuang
Land use right of Jiangsu Konka                             14,453,262.78          Mortgage loan
Land usage right of XingDa                                                         Mortgage loan
                                                            13,815,148.22
HongYe
Land usage right of Jiangxi Konka                                           Original shareholder guarantee
                                                            10,134,593.27
                                                                                       mortgage
Land use right of Konka                                                            Mortgage loan
                                                             5,612,493.83
Guangming
                  Total                                 376,579,273.20


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Konka Group Co., Ltd.                                                                        Interim Report 2022


21. Development Expenses

                                                                                                     Ending
                                                   Increase                 Decrease
                                                                                                     balance
                                                                               Tran
                                                                               sferr
                                                                     Recog      ed
                            Opening                            O     nized      into        O
        Item                                   Internal
                             balance                           th      as       the         th
                                            development
                                                               er    intang     curr        er
                                                costs
                                                               s      ible      ent         s
                                                                     assets    profi
                                                                                t or
                                                                                loss
Performance
improvement
project             of     13,635,816.63       693,019.26                                           14,328,835.89
MINI                &
MICRO LED
Self-
development                 3,234,494.07      3,618,937.32                                           6,853,431.39
of chips
       Total               16,870,310.70      4,311,956.58                                          21,182,267.28

22. Goodwill

(1) Original Carrying Value of Goodwill

                                              Increase                Decrease
                                           Formed
Name           of
                          Opening           due to       Ot                            Ot
the                                                                                              Ending balance
                           balance         business      he         Disposal           her
investees
                                           combinati      rs                            s
                                              on
Jiangxi
                         340,111,933.01                                                           340,111,933.01
Konka
XingDa
                          44,156,682.25                                                            44,156,682.25
HongYe
      Total              384,268,615.26                                                           384,268,615.26

(2) Provisions for Goodwill Impairment

                                                        169
Konka Group Co., Ltd.                                                                    Interim Report 2022


Name         of                                  Increase               Decrease
                       Opening
the                                                          Other     Dispos     Oth      Ending balance
                        balance            Provision
investees                                                      s         al        ers
Jiangxi
                     340,111,933.01                                                          340,111,933.01
Konka
XingDa
                      21,959,947.14                                                           21,959,947.14
HongYe
     Total           362,071,880.15                                                          362,071,880.15

(3) Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs
to

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 2022, 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
Renov
ation         236,571,769.59        30,482,087.54      18,423,669.96          799,399.90      247,830,787.27
costs
Shopp
e
                  20,710,094.41       9,309,544.49     10,669,985.12          151,251.17       19,198,402.61
expens
e
Others            40,215,519.39     26,899,124.53      11,795,484.67     3,113,715.43          52,205,443.82

Total         297,497,383.39        66,690,756.56      40,889,139.75     4,064,366.50         319,234,633.70

24. Deferred Income Tax Assets/Deferred Income Tax Liabilities

(1) Deferred Income Tax Assets without Offset

Item                              Ending balance                          Beginning balance




                                                     170
Konka Group Co., Ltd.                                                                Interim Report 2022


                                              Deferred
                       Deductible                                  Deductible          Deferred income
                                             income tax
                       temporary                                   temporary            tax liabilities
                                              liabilities
                       difference                                  difference               assets
                                                assets
Deductible
                      2,135,882,022.03       414,952,230.90       1,662,487,029.88        294,364,103.95
losses
Assets
impairment            1,533,384,176.11       348,864,883.98       1,495,008,640.79        341,517,549.45
provision
Deferred
                        51,456,483.86         12,807,870.97         54,518,127.50          13,573,281.87
Income
Accrued
                       181,382,754.97         36,460,801.61        211,674,351.84          47,600,301.64
expenses
Unrealized
internal sales          74,633,538.20         17,110,776.24         34,369,797.29           8,592,449.32
profits
Others                 102,367,469.24         24,937,571.58         95,608,084.94          19,668,038.87

    Total             4,079,106,444.41       855,134,135.28       3,553,666,032.24        725,315,725.10

(2) Lists of Deferred Income Tax Liabilities without Offset

                                    Ending balance                          Beginning balance
                                                   Deferred                                 Deferred
                             Taxable                                    Taxable
          Item                                   income tax                                income tax
                            temporary                                 temporary
                                                   liabilities                              liabilities
                            difference                                 difference
                                                   Liability                                Liability
Estimated added
value of assets not
                           206,301,023.34         43,885,643.01       225,287,542.61       46,262,753.72
under the same
control
Prepaid interest            68,993,424.86         17,248,356.21        51,003,370.16       12,750,842.54
Accelerated
depreciation of               3,664,731.64           765,257.91         6,990,324.63        1,596,656.16
fixed assets
Others                      71,047,225.75         17,278,976.68        65,137,318.19       16,284,329.55
          Total            350,006,405.59         79,178,233.81       348,418,555.59       76,894,581.97

(3) List of Unrecognized Deferred Income Tax Assets

           Item                          Ending balance                      Beginning balance
Deductible losses                             2,645,130,439.00                      2,210,991,564.05

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Konka Group Co., Ltd.                                                   Interim Report 2022


Deductible temporary
                                              2,020,657,733.61            2,024,354,413.51
difference
           Total                              4,665,788,172.61            4,235,345,977.56

(4) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following
Years

           Year                       Ending amount                     Remarks
2022                                         337,945,143.94
2023                                            145,560,403.37
2024                                            154,406,161.97
2025                                            589,213,126.47
2026                                            416,983,845.18
2027 and following years                      1,001,021,758.07
           Total                              2,645,130,439.00

25. Other Non-current Assets

                                                      Ending balance
        Item                                           Impairment
                           Carrying balance                             Carrying value
                                                        provision
Prepayment         for
                             1,029,317,896.04                             1,029,317,896.04
land-purchase
Prepayment         for
construction,
                                76,955,452.02                                76,955,452.02
equipment and other
long-term assets
Entrusted loans
Construction       of
government projects
        Total                1,106,273,348.06                             1,106,273,348.06

   (Continued)

                                                      Opening balance
        Item                                           Impairment
                           Carrying balance                             Carrying value
                                                        provision
Prepayment         for
                             2,584,957,360.50                             2,584,957,360.50
land-purchase
Prepayment         for
                                63,573,129.62                                63,573,129.62
construction,

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Konka Group Co., Ltd.                                                        Interim Report 2022


                                                       Opening balance
       Item                                             Impairment
                         Carrying balance                                   Carrying value
                                                         provision
equipment and other
long-term assets
Entrusted loans
Construction        of
government projects
       Total                 2,648,530,490.12                                  2,648,530,490.12

26. Short-term Borrowings

(1) Category of Short-term Borrowings

        Item              Ending balance              Opening balance             Note
    Credit loan              8,024,477,565.64          7,178,420,980.60
   Guarantee loan            1,633,418,300.71          2,382,534,766.48      a)b)c)d)e)f)g)
   Mortgage loan              432,299,020.24             359,719,374.00         h)i)j)k)l)
       Total                10,090,194,886.59          9,920,675,121.08

    a) The Company provides joint and several liability guarantee for the short-term borrowings
totaling RMB839,402,882.13 to its subsidiaries Anhui Konka, Sichuan Konka, Anhui
Tongchuang, Electronics Technology, Jiangxi Konka, Jiangxi High-permeability Substrate,
Xinfeng Microcrystalline, Liaoyang Kangshun, Yibin Smart and Kowin Memory (Shenzhen).

    b) The Company has obtained short-term borrowings amounting to RMB373,333.33 from
Shenzhen Chegongmiao Sub-branch of China Everbright Bank Co., Ltd., for which the
Company's subsidiary Electronics Technology provides joint and several liability guarantee at the
maximum amount.

    c) The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting
to RMB600,000.00 from Shenzhen Technology Sub-branch of Bank of Hangzhou Co., Ltd., for
which Shenzhen High-tech Investment and Financing Guarantee Co., Ltd. provides guarantee.

    d) The Company's subsidiary Konka Ventures has obtained short-term borrowings
amounting to RMB8,700,000.00 from Shenzhen Futian Sub-branch of Bank of China Co., Ltd.,
for which Shenzhen SME Financing Guarantee Co., Ltd. provides guarantee.

    e) The Company's subsidiary Ningbo Khr Electric Appliance Co., Ltd. has obtained short-
term borrowings amounting to RMB50,000,000.00 from Cixi Branch of Bank of China Limited,



                                                173
Konka Group Co., Ltd.                                                           Interim Report 2022


for which the Company and Korea Electric Group Co., Ltd. provide joint and several liability
guarantee at the proportion of 60% and 40% respectively.

     f) The Company's subsidiary Ningbo Khr Electric Appliance Co., Ltd. has obtained short-
term borrowings amounting to RMB30,000,000.00 from Cixi Central District Sub-branch of
Bank of Ningbo Co., Ltd., for which the Company and Korea Electric Group Co., Ltd. provide
joint and several liability guarantee at a ratio of 3:2.

     g) The Company's subsidiary Hong Kong Konka has obtained short-term borrowings
amounting to USD30,000,000.00 (equivalent to RMB201,342,085.25) from Shenzhen Branch of
China Zheshang Bank Co., Ltd., for which the Company provides joint and several liability
guarantee.

     h) The Company's subsidiary XingDa HongYe has obtained short-term borrowings
amounting to RMB95,000,000.00 from Zhongshan Fusha Sub-branch of Zhongshan Rural
Commercial Bank, for which it provides land use rights of a carrying value of
RMB13,815,148.22 and buildings of a carrying value of RMB35,852,318.78 as mortgage and
certificates of time deposit of RMB19,800,000.00 as pledge and Hu Zehong provides joint and
several liability guarantee.

     i) The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to
RMB222,194,538.70 from Chuzhou Branch of Bank of China Limited, for which it provides land
use rights of a carrying value of RMB37,064,265.33 and fixed assets of a carrying value of
RMB428,376,877.37 as mortgage.

     j) The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to
USD5,595,708.36 (equivalent to RMB37,555,037.09) from Chuzhou Branch of Bank of China
Limited, for which it provides land use rights of a carrying value of RMB37,064,265.33 and fixed
assets of RMB428,376,877.37 as mortgage.

     k) The Company's subsidiary Anhui Electrical Appliance has obtained short-term borrowings
amounting to RMB37,500,000.00 from Hefei Branch of China ZheShang Bank, for which it
provides buildings of a carrying value of RMB88,015,544.30 and land use rights of a carrying
value of RMB66,764,392.50 of the Company's subsidiary Henan Frestec Refrigeration Appliance
Co., Ltd. as mortgage and the 210 million equities in Henan Frestec Household Appliances Co.,
Ltd., 123,051,096 equities in Henan Frestec Refrigeration Appliance Co., Ltd. and 668,637,700
equities in Henan Frestec Electrical Appliances Co., Ltd. it holds as pledge.

     l) The Company's subsidiary Jiangsu Konka Smart has obtained short-term borrowings
amounting to RMB40,049,444.45 from Changzhou Branch of China ZheShang Bank Co., Ltd.,


                                                   174
Konka Group Co., Ltd.                                                         Interim Report 2022


for which it provides buildings of a carrying value of RMB39,453,997.39 and land use rights of
RMB14,453,262.78 as mortgage.

(2) Outstanding Short-term Borrowings Overdue

There were no outstanding short-term borrowings overdue at the period-end.

27. Notes Payable

              Category                   Ending balance                  Opening balance
Bank’s acceptance bill                          918,451,201.16                   729,653,866.95
Commercial acceptance bill                       214,736,964.29                   386,683,091.96
               Total                           1,133,188,165.45                 1,116,336,958.91

28. Accounts Payable

(1) List of Accounts Payable

Item                                     Ending balance                  Opening balance
Within 1 year                                  2,192,583,979.74                 3,479,614,154.99
1 to 2 years                                     263,468,989.22                   187,662,627.95
2 to 3 years                                     149,737,886.44                    85,964,325.66
Over 3 years                                      37,635,955.02                    31,073,982.81
               Total                           2,643,426,810.42                 3,784,315,091.41

29. Contract Liabilities

                   Item                  Ending balance                  Opening balance
Sales advances received                          711,366,769.35                   652,910,408.02

               Total                             711,366,769.35                   652,910,408.02

30. Payroll Payable

(1) List of Payroll Payable

                          Beginning
       Item                              Increased           Decreased          Ending balance
                           balance
List          of
Short-term            409,391,936.17     680,192,334.37      908,460,659.21       181,123,611.33
Salary
Post-
employment
benefit-                  1,203,348.63    56,054,347.94       56,740,989.17           516,707.40
defined
contribution

                                               175
Konka Group Co., Ltd.                                                      Interim Report 2022


                      Beginning
     Item                               Increased         Decreased          Ending balance
                       balance
plans
Termination
                        151,800.00       14,577,347.98     14,539,646.36           189,501.62
benefits
Current
portion       of
other
benefits
     Total           410,747,084.80     750,824,030.29    979,741,294.74       181,829,820.35

(2) List of Short-term Salary

                        Beginning
      Item                                Increased       Decreased           Ending balance
                         balance
Salary, bonus,
allowance,             399,855,780.86    589,744,896.85   817,340,366.01       172,260,311.70
subsidy
Welfare        for
                           952,201.64     26,765,768.27    22,971,977.88         4,745,992.03
employees
Social security
                         1,256,304.20     26,571,970.63    27,378,449.93           449,824.90
expense
Of         which:
Medical
                           955,995.78     23,681,976.44    24,466,926.93           171,045.29
insurance
premiums
          Work-
related     injury          68,005.10      1,791,107.08     1,715,951.17           143,161.01
insurance
     Maternity
                           232,303.32      1,098,887.11     1,195,571.83           135,618.60
insurance
Housing fund               137,726.03     25,340,998.61    25,432,171.73            46,552.91
Labor        union
budget        and
employee                 6,703,757.33      5,968,203.83     9,554,898.63         3,117,062.53
education
budget
Short-term
absence       with

                                              176
Konka Group Co., Ltd.                                                             Interim Report 2022


                          Beginning
       Item                                  Increased            Decreased          Ending balance
                           balance
payment
Short-term
profit   sharing
plan
Others                      486,166.11        5,800,496.18         5,782,795.03           503,867.26
       Total             409,391,936.17     680,192,334.37       908,460,659.21       181,123,611.33

(3) List of Defined Contribution Plan

                             Beginning
         Item                                  Increased           Decreased         Ending balance
                              balance
Basic          pension
                             1,109,814.46     54,774,941.89        55,373,982.51          510,773.84
benefits
Unemployment
                                93,534.17       1,279,406.05        1,367,006.66             5,933.56
insurance
Annuity
         Total               1,203,348.63     56,054,347.94        56,740,989.17          516,707.40

31. Taxes Payable

                   Item                          Ending balance               Beginning balance
Corporate income tax                                     152,350,658.23               168,026,929.08
VAT                                                       72,068,785.98                59,692,464.80
Fund for disposing abandoned                              22,165,538.00
                                                                                       30,077,111.00
appliances and electronic products
Urban maintenance and construction                         3,838,220.12
                                                                                        3,696,423.98
tax
Education fees and local education                         2,855,755.44
                                                                                        2,840,889.56
Surcharge
Stamp duty                                                 2,850,389.19                 6,255,372.18
Land use tax                                               9,882,447.76                 8,812,080.36
Individual income tax                                      2,445,096.29                 9,602,569.88
Property tax                                               4,397,205.10                 4,287,226.80
Tariff                                                     1,827,436.25                 1,962,596.87
Others                                                       487,336.76                   571,505.90
                   Total                                 275,168,869.12               295,825,170.41

32. Other payables


                                                 177
Konka Group Co., Ltd.                                                         Interim Report 2022


                   Item                          Ending balance            Beginning balance
Interest payable                                       88,023,792.80             174,383,177.08
Other Payables                                         1,304,121,621.07          1,613,794,571.51
                   Total                               1,392,145,413.87          1,788,177,748.59

32.1. Interests payable

                   Item                          Ending balance            Beginning balance
Interest on corporate bonds                            85,585,555.62             171,218,888.92
Interest on long-term borrowings with
interest   paid    by     installment   and                 340,309.14
principal paid at maturity
Interest    payable        on   short-term
                                                           2,097,928.04              3,164,288.16
borrowings
                   Total                                 88,023,792.80             174,383,177.08

32.2 Other payables

(1) Listed by Nature of Account

               Item                              Ending balance            Beginning balance
Expenses payable                                      549,614,012.77             755,393,561.40
Related party borrowing                                  165,071,148.34            313,104,212.26
Cash deposit and front                                   249,776,731.65            240,638,514.04
Come-and-go money                                        162,997,650.90            177,524,073.79
Equity transfer payment                                   67,482,796.96             67,482,796.96
Advance payment                                            7,711,699.62              8,282,111.32
Others                                                   101,467,580.83             51,369,301.74
                   Total                               1,304,121,621.07          1,613,794,571.51

(2) Other Significant Payables Aging over One Year

                   Item                                                   Unpaid/Un-carry-over
                                                 Ending balance
                                                                                  reason
Equity transfer money of Jiangxi                                          Not meet the settlement
Konka                                                     61,180,000.00         conditions
                   Total                                  61,180,000.00

33. Current Portion of Non-current Liabilities

                   Item                           Ending balance            Beginning balance
Current portion of long-term
                                                         197,476,406.03          2,087,374,444.43
borrowings

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Konka Group Co., Ltd.                                                             Interim Report 2022


                   Item                            Ending balance            Beginning balance
Current portion of long-term payables                    155,856,358.05               270,119,697.71
Current portion of bonds payables                        700,000,000.00             2,700,000,000.00
Current portion of lease liabilities                      18,580,455.76                32,092,127.18
                 Total                                  1,071,913,219.84            5,089,586,269.32

34. Other current liabilities

                   Item                            Ending balance            Beginning balance
Accounts      payable      with        trade
                                                         120,059,255.05                63,854,223.36
acceptance notes
Refunds payable                                           24,448,137.69                30,629,396.14
Tax to be charged off                                     17,870,862.23                15,258,568.74
                 Total                                   162,378,254.97               109,742,188.24

35. Long-term Borrowings

(1) Category of Long-term Borrowings

         Item                   Ending balance            Opening balance                Note
Guarantee loan                    2,721,257,336.32           3,185,072,777.76         a)b)c)d)e)f)
Mortgage loan                       527,933,682.55              638,086,279.01           g)h)i)
Entrusted borrowings              3,469,478,777.76             1,322,271,760.09            j)
Credit loan                       1,693,252,666.66              471,084,166.66
Pledge loan                            31,000,000.00                                      k)l)
Less: Current portion               197,476,406.03             2,087,374,444.43
        Total                     8,245,446,057.26             3,529,140,539.09

     a) The Company has obtained long-term borrowings amounting to RMB1,000,875,000.00
from the Export-Import Bank of China, the term of which is from 22 June 2022 to 21 June 2024,
and for which the Company's parent company OCT Group provides joint and several liability
guarantee at the maximum amount.

     b) The Company has obtained long-term borrowings amounting to RMB1,496,661,111.10
from Shenzhen Branch of China Guangfa Bank Co., Ltd., the term of which is from 24 June 2021
to 23 June 2024, and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.

     c) The Company's subsidiary XingDa HongYe has obtained long-term borrowings
amounting to RMB52,884,400.00 from Zhuhai Branch of Xiamen International Bank Co., Ltd.,



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Konka Group Co., Ltd.                                                              Interim Report 2022


the term of which is from 25 February 2022 to 23 February 2024, and for which the Company
provides joint and several liability guarantee at the maximum amount.

     d) The Company's subsidiary Anhui Konka Electronic Co., Ltd. has obtained long-term
borrowings amounting to RMB70,060,245.22 from Chuzhou Plaza Sub-branch of China
Construction Bank Co., Ltd., the term of which is from 29 October 2021 to 26 October 2026, and
for which the Company provides joint and several liability guarantee.

     e) The Company's subsidiary Konka Xinyun Semiconductor Technology (Yancheng) Co.,
Ltd. has obtained long-term borrowings amounting to RMB82,776,580.00 from Yancheng Branch
of HuaXia Bank Co., Ltd., the term of which is from 15 September 2021 to 21 August 2026, and
for which the Company and its subsidiary Kowin Memory Technology (Shenzhen) Co., Limited
provide joint and several liability guarantee at the maximum amount.

     f) The Company's subsidiary Ningbo Khr has obtained long-term borrowings amounting to
RMB18,000,000.00 from Cixi Central District Sub-branch of Bank of Ningbo, the term of which
is from 12 August 2021 to 9 September 2022, and for which the Company and Korea Electric
Group Co., Ltd. provide joint and several liability guarantee at a ratio of 3:2.

     g) The Company has obtained long-term borrowings amounting to RMB248,571,405.88
from Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co., Ltd., the term of which is
from 22 January 2021 to 22 January 2026, and for which it provides land use rights of a carrying
value of RMB5,612,493.83 and investment properties of a carrying value of RMB106,335,030.70
and housing buildings of a carrying value of RMB77,229,221.63 as mortgage.

     h) The Company's subsidiary Dongguan Konka has obtained long-term borrowings
amounting to RMB201,679,803.72 from Dongguan Fenggang Sub-branch of Agricultural Bank of
China Co., Ltd., the term of which is from 22 June 2021 to 21 October 2030, and for which it
provides land use rights of a carrying value of RMB191,936,448.67 as mortgage and the
Company provides joint and several liability guarantee.

     i) The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB77,682,472.95 from Chuzhou Branch of Industrial Bank Co., Ltd., of which the term is from
16 July 2021 to 15 July 2031, and for which it provides land use rights of a carrying value of
RMB18,609,690.67 and fixed assets of a carrying value of RMB192,464,279.08 as mortgage and
the Company provides joint and several liability guarantee.

     j) The Company's parent company OCT Group has extended entrusted loans amounting to
RMB3,469,478,777.76 to the Company through China Merchants Bank Co., Ltd., the term of
which is from 9 October 2021 to 25 February 2024.


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     k) Yibin Kangrun Medical (a subsidiary of the Company) has obtained long-term
borrowings amounting to RMB15,500,000.00 from Yibin Sub-Branch of Postal Savings Bank of
China Co., Ltd. with the accounts receivable arising from the prospective earnings
(RMB595,900,000.00) from a concession contract of medical waste treatment project in Gaoxian
County, Yibin City as pledge, and the term thereof is from 30 June 2022 to 15 April 2024.

     l) Yibin Kangrun Medical (a subsidiary of the Company) has obtained long-term borrowings
amounting to RMB15,500,000.00 from Yibin Sub-Branch of Industrial and Commercial Bank of
China Co., Ltd. with the accounts receivable arising from the prospective earnings
(RMB595,900,000.00) from a concession contract of medical waste treatment project in Gaoxian
County, Yibin City as pledge, and the term thereof is from 30 June 2022 to 15 April 2024.

36. Bonds Payable

(1) List of Bonds Payable

              Item                        Ending balance                 Beginning balance
Non-public offering corporate
                                                 2,995,579,140.50                  4,993,698,899.30
bonds
Less:     Bonds     payable   due
                                                  700,000,000.00                   2,700,000,000.00
within 1 year
              Total                              2,295,579,140.50                  2,293,698,899.30

(2) Changes of Bonds Payable (Excluding Other Financial Instruments Divided as Financial
Liabilities such as Preferred Shares and Perpetual Bonds)

  Bonds                              Issuing
                  Total par value                Duration    Issuing amount       Beginning balance
  name                                date
19Konka0
                  1,500,000,000.00   2019/1/14    3 years     1,494,750,000.00       1,500,000,000.00
2 (note ①)
19Konka0
                    500,000,000.00    2019/6/3    3 years      498,250,000.00         499,770,702.34
4 (note ②)
19Konka0
                    700,000,000.00   2019/7/22    3 years      697,550,000.00         699,614,779.74
6 (note ③)
21Konka0
                  1,000,000,000.00    2021/1/8    3 years      996,500,000.00         997,798,742.17
1 (note ④)
21Konka0
                    500,000,000.00   2021/5/21    3 years      498,250,000.00         498,715,932.92
2 (note ⑤)
21Konka0
                    800,000,000.00    2021/7/9    3 years      797,200,000.00         797,798,742.13
3 (note ⑥)

  Total           5,000,000,000.00                            4,982,500,000.00       4,993,698,899.30



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   (Continued)

                                                                               Amortization of
                           Issued during the       Withdraw interest at
    Bonds name                                                                   premium and
                           Reporting Period              face value
                                                                                    discount
19Konka02 (note ①)                                          3,125,000.00
19Konka04 (note ②)                                          9,791,666.69               229,297.66
19Konka06 (note ③)                                        16,450,000.02                385,220.26
21Konka01 (note ④)                                        22,300,000.02                550,314.48
21Konka02 (note ⑤)                                        10,000,000.02                275,157.24
21Konka03 (note ⑥)                                        15,799,999.98                440,251.56
          Total                                            77,466,666.73              1,880,241.20

        (Continued)

                                  Repay during the Reporting
           Bonds name                                                       Ending balance
                                              Period
19Konka02 (note ①)                            1,500,000,000.00
19Konka04 (note ②)                               500,000,000.00
19Konka06 (note ③)                                                                 700,000,000.00
21Konka01 (note ④)                                                                 998,349,056.65
21Konka02 (note ⑤)                                                                 498,991,090.16
21Konka03 (note ⑥)                                                                 798,238,993.69
              Total                             2,000,000,000.00                  2,995,579,140.50

Note 1:

① On 14 January 2019, the Company issued RMB1.5 billion of private placement corporate
bonds with the duration of 3 years, the annual interest rate of 5.00% and the due date of 14
January 2022. "19 Konka 02" has been fully paid and delisted from the exchange on 14 January
2022.

② On 3 June 2019, the Company issued RMB500 million of private placement corporate bonds
with the duration of 3 years, the annual interest rate of 4.70% and the due date of 3 June 2022.
"19 Konka 04" has been fully paid and delisted from the exchange on 3 June 2022.

③ On 22 July 2019, the Company issued RMB700 million of private placement corporate bonds
with the duration of 3 years, the annual interest rate of 4.70% and the due date of 22 July 2022.

④ On 8 January 2021, the Company issued RMB1 billion of private placement corporate bonds
with the duration of 3 years, the annual interest rate of 4.46% and the due date of 8 January 2024.

⑤ On 21 May 2021, the Company issued RMB500 million of private placement corporate bonds

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with the duration of 3 years, the annual interest rate of 4.00% and the due date of 21 May 2024.

⑥ On 9 July 2021, the Company issued RMB800 million of private placement corporate bonds
with the duration of 3 years, the annual interest rate of 3.95% and the due date of 9 July 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                                             70,197,409.60                 74,624,996.81
     Less:    Lease         liabilities    due
                                                              18,580,455.76                 32,092,127.18
within 1 year (see Note VI-33)
                    Total                                     51,616,953.84                 42,532,869.63

38. Long-term Payables

                  Nature                             Ending balance                 Opening balance
Accrued financing lease outlay                            304,774,617.06                  434,481,614.08
Less:      Unrecognized            financing
                                                              12,517,744.35                 23,674,345.59
expenses
     Less: Current portion (see Note
                                                             155,856,358.05                270,119,697.71
VI-33)
                    Total                                    136,400,514.66                140,687,570.78

39. Long-term Payroll Payable

(1) Classification

               Item                                  Ending balance                 Beginning balance
Termination benefits-net liabilities of
                                                               5,029,726.81                  5,111,296.75
          defined contribution plans
                    Total                                      5,029,726.81                  5,111,296.75

40. Provisions

          Item                     Ending balance            Beginning balance           Reason for
                                                                                          formation
Product             quality                                                                  After-sales of
                                          106,147,658.31         106,069,944.34
assurance                                                                             household appliances
Pending litigation                           206,591.51                206,591.51
          Total                           106,354,249.82         106,276,535.85




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41. Deferred Income

              Item                    Beginning balance           Increased                Decreased           Ending balance         Reason for formation

Government grants                         206,302,424.92           78,247,601.42            22,068,617.74        262,481,408.60 Related to assets/income

              Total                       206,302,424.92           78,247,601.42            22,068,617.74        262,481,408.60

(1) Category of Deferred Income

                                                                              Amount
                                                                                               Amount
                                                                            included in                                                             Related to
                                                                                           included in other
  List of Government Subsidy         Opening balance        Increase       non-operating                       Other changes    Ending balance        assets/
                                                                                             income this
                                                                            income this                                                              income
                                                                                                period
                                                                              period
Plant construction subsidy for                                                                                                                     Related      to
Yibin Konka Industrial Park             71,448,167.88      36,489,600.00                         913,032.95                       107,024,734.93
                                                                                                                                                   income
Special subsidy for Yibin Project                                                                                                                  Related      to
                                         4,583,311.51      21,088,001.42                                                           25,671,312.93
                                                                                                                                                   assets
Subsidy for industrial R&D                                                                                                                         Related      to
                                        20,000,000.00                                                                              20,000,000.00
                                                                                                                                                   assets
Returned payments for land by                                                                                                                      Related      to
Chongqing Konka                         18,720,000.03                                            196,363.62                        18,523,636.41
                                                                                                                                                   income
Plant decoration subsidy for Yibin                                                                                                                 Related      to
Konka Industrial Park                   12,952,939.23                                            719,607.72                        12,233,331.51
                                                                                                                                                   assets


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                                                                        Amount
                                                                                          Amount
                                                                       included in                                                            Related to
                                                                                      included in other
  List of Government Subsidy       Opening balance     Increase       non-operating                       Other changes    Ending balance       assets/
                                                                                        income this
                                                                       income this                                                             income
                                                                                           period
                                                                         period
Subsidy for high-tech innovation                                                                                                             Related      to
                                      11,373,198.33                                         327,491.68                       11,045,706.65
and operation in Yancheng                                                                                                                    assets
                                                                                                                                           Related        to
Other government grants               67,224,807.94   20,670,000.00                      11,382,121.77      8,530,000.00     67,982,686.17 assets/
                                                                                                                                           income

             Total                   206,302,424.92   78,247,601.42                      13,538,617.74      8,530,000.00    262,481,408.60




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42. Other non-current liabilities

               Item                         Ending balance                     Beginning balance
Contract liabilities over one                                                          104,610,663.76
                                                        85,210,503.30
year
               Total                                    85,210,503.30                   104,610,663.76

43. Share capital

                                                Increase/decrease (+/-)
                                                   B
                                                    o
                                                           Bonus
                                          New      n                          Sub
   Item          Beginning balance                          issue    Oth              Ending balance
                                          shares   us                         tota
                                                            from        ers
                                          issued   sh                          l
                                                            profit
                                                   ar
                                                   es
Total
                     2,407,945,408.00                                                 2,407,945,408.00
shares

44. Capital Reserves

       Item          Beginning balance          Increased            Decreased        Ending balance
Other      capital
                         234,389,963.10       135,296,760.09         2,854,608.30       366,832,114.89
reserves
       Total             234,389,963.10       135,296,760.09         2,854,608.30       366,832,114.89

Note: Capital reserves for the current period - other capital reserves increase and decrease due to
the main reasons:

② Other capital reserves increased by RMB135,296,760.09 due to the increase in capital and

shares by the associated enterprise Econ Technology.


② Other capital reserves decreased by RMB2,854,608.30 due to the disposal of the associated
enterprise Guangdong Chutian Dragon Smart Card Co., Ltd.




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  Konka Group Co., Ltd.                                    Interim Report 2022



  45. Other Comprehensive Income

                                                                                                  Reporting Period
                                                                   Less:                Less:
                                                                Recorded in       Recorded in
                                                                   other                other
                                                                comprehensi       comprehens        Less:
                                                                                                            Attributable to
                                                                ve income in       ive income       Inco                      Attributable to
                             Beginning        Income before                                                 owners of the
          Item                                                  prior period           in prior      me                       non-controlling   Ending balance
                              balance         taxation in the                                                Company as
                                                                    and            period and        tax                      interests after
                                              Current Period                                                  the parent
                                                                transferred       transferred       expe                           tax
                                                                                                               after tax
                                                                in profit or       in retained       nse
                                                                 loss in the       earnings in
                                                                  Current         the Current
                                                                  Period               Period
I. Items that will not
be reclassified to profit     -6,398,878.20                                                                                                        -6,398,878.20
or loss
  Changes        in   fair
value of other equity         -6,398,878.20                                                                                                        -6,398,878.20
instrument investment
  Others
II. Items that will be
                             -13,937,209.67      4,109,281.36                                                  3,289,330.41        819,950.95     -10,647,879.26
reclassified to profit or


                                                                                 187
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                                                                                                  Reporting Period
                                                                   Less:                Less:
                                                                Recorded in       Recorded in
                                                                   other                other
                                                                comprehensi       comprehens        Less:
                                                                                                            Attributable to
                                                                ve income in       ive income       Inco                      Attributable to
                             Beginning        Income before                                                 owners of the
          Item                                                  prior period           in prior      me                       non-controlling   Ending balance
                              balance         taxation in the                                                Company as
                                                                    and            period and        tax                      interests after
                                              Current Period                                                  the parent
                                                                transferred       transferred       expe                           tax
                                                                                                               after tax
                                                                in profit or       in retained       nse
                                                                 loss in the       earnings in
                                                                  Current         the Current
                                                                  Period               Period
loss
Of     which:       Other
comprehensive income
that       will        be
                              -1,215,133.65        -38,929.34                                                    -38,929.34                        -1,254,062.99
reclassified to profit or
loss under the equity
method
  Differences arising
from the translation of      -12,722,076.02      4,148,210.70                                                  3,328,259.75        819,950.95      -9,393,816.27
foreign           currency


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                                                                                               Reporting Period
                                                                Less:                Less:
                                                             Recorded in       Recorded in
                                                                other                other
                                                             comprehensi       comprehens        Less:
                                                                                                         Attributable to
                                                             ve income in       ive income       Inco                      Attributable to
                          Beginning        Income before                                                 owners of the
        Item                                                 prior period           in prior      me                       non-controlling   Ending balance
                           balance         taxation in the                                                Company as
                                                                 and            period and        tax                      interests after
                                           Current Period                                                  the parent
                                                             transferred       transferred       expe                           tax
                                                                                                            after tax
                                                             in profit or       in retained       nse
                                                              loss in the       earnings in
                                                               Current         the Current
                                                               Period               Period
denominated financial
statements
    Total Other
   Comprehensive          -20,336,087.87      4,109,281.36                                                  3,289,330.41        819,950.95     -17,046,757.46
       Income




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46. Surplus Reserves

           Item              Beginning balance        Increased      Decreased        Ending balance
Statutory          surplus
                                1,005,961,774.19                                      1,005,961,774.19
reserves
Discretional surplus
                                  238,218,590.05                                        238,218,590.05
reserves
           Total                1,244,180,364.24                                      1,244,180,364.24

47. Retained Earnings

                        Item                          Reporting Period        Same period of last year
Ending balance of last period                            5,229,098,788.94            4,595,371,391.63
Add: Total beginning balance of retained
earnings before adjustments
     Of which: change of accounting policy
                     Other adjustment factors
Beginning balance of the Reporting
                                                           5,229,098,788.94           4,595,371,391.63
Period
Add: Net profit attributable to owners of
                                                             172,818,438.83             905,352,997.68
the Company as the parent
      Retained incomes carried forward
                                                                                           1,628,195.00
from other comprehensive income
Less: Withdrawal of statutory surplus
                                                                                         32,459,254.57
reserves
      Withdrawal of discretional surplus
reserves
      Dividend of ordinary shares payable                    120,397,270.40             240,794,540.80
Ending balance of this period                              5,281,519,957.37           5,229,098,788.94

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
operation          16,243,380,757.24     16,013,632,913.79     21,412,726,539.67     20,510,002,960.62
s



                                                     190
Konka Group Co., Ltd.                                                          Interim Report 2022



     Item                Reporting Period                        Same period of last year
Other
operation        652,089,519.57        468,807,708.05        397,435,333.41         307,172,753.16
s
     Total     16,895,470,276.81    16,482,440,621.84     21,810,161,873.08      20,817,175,713.78

(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
              10,171,407,159.62     10,120,679,704.92      12,184,495,984.54      12,079,110,369.50
trading
business
Color
TV             2,389,828,778.20       2,418,706,246.97      3,190,601,881.06       3,017,183,364.20
business
Environ
mental
protecti         774,458,509.72        749,206,296.93       2,724,186,133.96       2,439,448,446.23
on
business
Consum
er
applianc       1,900,207,771.57       1,711,652,138.98      1,752,194,252.46       1,608,490,566.46
es
business
PCB
                 291,397,810.91        280,056,849.29        365,622,811.21          337,306,983.48
business

Semi-
conduct
                  50,916,083.90         52,958,914.59        241,973,760.06          229,060,263.71
or
business
Others           665,164,643.32        680,372,762.11        953,651,716.38          799,402,967.04

    Total     16,243,380,757.24     16,013,632,913.79      21,412,726,539.67      20,510,002,960.62

49. Taxes and Surtaxes

              Item                      Reporting Period              Same period of last year


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Konka Group Co., Ltd.                                               Interim Report 2022



               Item               Reporting Period            Same period of last year
Stamp duty                                    15,956,693.35                 17,210,974.34
Land use tax                                  13,241,507.04                 12,591,947.22
Urban maintenance and
                                               8,149,278.82                  5,272,168.22
construction tax
Property tax                                   9,150,456.54                  4,521,990.47
Education surcharge                            3,669,080.87                  2,252,651.83

Local education surcharge                      2,445,857.60                  1,295,806.68

Water resources fund                             228,825.54                     98,737.91

Others                                           443,271.42                  1,212,085.27

               Total                          53,284,971.18                 44,456,361.94

50. Selling Expense

               Item               Reporting Period            Same period of last year
Payroll                                    159,102,544.06                  179,194,691.52

Advertising expense                        141,115,130.40                  143,443,247.26

Promotional activities                        72,748,154.60                 93,916,189.20

Warranty fee                                  79,063,725.82                 95,238,254.77

Logistic Fee                                  30,314,056.31                 57,131,056.01
Taxes and fund                                26,642,413.92                 26,084,857.60
Rental charges                                12,385,615.94                 13,812,228.32
Business travel charges                        7,448,071.22                  9,695,834.71

Business entertainment expenses                5,435,508.51                  6,473,826.73

Exhibition expenses                            1,713,164.44                  2,675,578.55
Others                                        24,257,299.06                 39,996,271.80

               Total                       560,225,684.28                  667,662,036.47

51. Administrative Expense

               Item               Reporting Period            Same period of last year
Payroll                                   213,795,836.28                 172,124,998.88
Depreciation charge                           71,715,060.26                55,861,222.66
Intermediary fees                             17,693,182.52                24,599,241.61
Business travel charges                        3,765,905.28                 8,275,347.12




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            Item                  Reporting Period            Same period of last year
Water & electricity fees                     5,296,977.22                   5,392,545.21
Loss on scraping of inventories                2,086,492.21                 2,246,719.29
Others                                        39,955,230.74                90,553,592.30
               Total                      354,308,684.51                  359,053,667.07

52. R&D Expense

               Item               Reporting Period            Same period of last year
Salary                                    119,288,045.71                 141,474,094.27
Others                                    118,060,480.85                  143,189,372.99
               Total                      237,348,526.56                  284,663,467.26

53. Finance Costs

               Item               Reporting Period            Same period of last year
Interest expense                          465,576,348.06                 488,330,464.76
Less: Interest income                     109,353,054.39                   78,303,181.42
Add: Exchange loss                        -114,830,078.08                  28,226,971.34
Other                                         25,722,111.99                21,161,528.03
               Total                      267,115,327.58                  459,415,782.71

54. Other Income

          Resources               Reporting Period            Same period of last year
Support fund                              227,351,711.98                  342,585,919.00
Rewards and subsidies                         90,960,177.86               116,820,277.53
Transfer of deferred income                   13,538,617.74               247,958,151.57
Software tax rebates                           7,949,955.87                 6,085,265.89

Post subsidies                                 2,253,703.66                 2,426,398.00
Land tax rebates                               1,433,605.93                 4,728,544.03
L/C export subsidy                              249,549.87                     91,800.00
               Total                      343,737,322.91                  720,696,356.02

55. Investment Income

               Item               Reporting Period            Same period of last year
Long-term equity investment
income measured by equity                     59,402,481.72                19,335,816.88
method


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                 Item                     Reporting Period             Same period of last year
Investment         income        from
disposal of long-term equity                      406,299,201.96                   177,579,605.00
investment
Income from remeasurement of
residual stock rights at fair                     239,092,140.86                    68,185,019.88
value after losing control power
Interest income from holding of
                                                      32,966,971.77                 34,566,759.25
debt investments
Investment         income        from
disposal of financial assets at
                                                         42,739.74                  22,577,111.88
fair value through current profit
or loss
                 Total                            737,803,536.05                   322,244,312.89

56. Gain on Changes in Fair Value

                 Sources                   Reporting Period            Same period of last year
Financial assets at fair value
                                                        -638,799.36                 40,362,513.73
through profit or loss
                  Total                                 -638,799.36                 40,362,513.73

57. Credit Impairment Loss

                  Item                     Reporting Period            Same period of last year
Loss on bad debts of notes
                                                        7,050,461.27                19,146,640.03
receivable
Bad debt losses of accounts
                                                      -42,299,060.06               -64,007,725.46
receivable
Bad       debt    losses    of    other
                                                      -43,359,714.77               -26,531,092.63
receivables
                  Total                               -78,608,313.56               -71,392,178.06

58. Asset Impairment Loss

                  Item                     Reporting Period            Same period of last year
Inventory depreciation loss and
contract         performance       cost               -13,309,988.75               -10,573,236.91
impairment loss



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               Item                           Reporting Period                Same period of last year
Contractual asset impairment loss                                                        -18,965,495.91
              Total                                       -13,309,988.75                   -29,538,732.82

59. Asset Disposal Income (“-” for loss)

                                                                                            Amount
                                                                                         recorded in the
                                                Reporting          Same period of
                 Item                                                                     current non-
                                                  Period              last year
                                                                                        recurring profit
                                                                                             or loss
Incomes from disposal of non-current
                                                 12,782,328.52              88,668.35      12,782,328.52
assets
 Including: incomes from disposal of
non-current assets not classified as the         12,782,328.52              88,668.35      12,782,328.52
held-for-sale assets
 Of which: Fixed assets disposal
                                                    -75,972.28              88,668.35          -75,972.28
income
            Right-of-use assets
                                                     14,904.57                                  14,904.57
disposal income
            Intangible assets disposal
                                                 12,843,396.23                             12,843,396.23
income
                 Total                           12,782,328.52              88,668.35      12,782,328.52

60. Non-operating Income

(1) List of Non-operating Income

                                                                                        Amount recorded
                                                                    Same Period of        in the current
                 Item                         Reporting Period
                                                                       last year          non-recurring
                                                                                          profit or loss
Insurance indemnity                                                   12,736,400.00
Compensation and penalty income                  14,518,135.77         1,884,536.59        14,518,135.77
Government subsidies unrelated to the
                                                    200,900.00                                200,900.00
normal operation of the Company
Non-current assets damage and
                                                    364,917.85             237,884.42         364,917.85
retirement gains
Gains on debt restructuring                          33,184.00             544,827.07           33,184.00
Other                                            15,375,604.03         6,214,629.71        15,375,604.03



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                                                                                       Amount recorded
                                                                  Same Period of        in the current
                   Item                    Reporting Period
                                                                      last year         non-recurring
                                                                                         profit or loss
                   Total                      30,492,741.65         21,618,277.79         30,492,741.65



61. Non-operating Expense

                                                                                  Amount recorded into
                                                            Same Period of          the current non-
               Item               Reporting Period
                                                               last year           recurring profit or
                                                                                          loss
Losses    on     damage    and
                                           829,936.20             437,270.73                 829,936.20
scraping of non-current assets
Compensation expense                       955,320.82             161,680.10                 955,320.82
Others                                  2,075,688.78            6,194,922.31               2,075,688.78
               Total                    3,860,945.80            6,793,873.14               3,860,945.80

62. Income Tax Expense

(1) Lists of Income Tax Expense

                Item                       Reporting Period                Same period of last year
Current income tax expense                          38,695,464.05                     192,219,793.73
Deferred income tax expense                        -127,554,328.41                      -107,956,525.36
               Total                                 -88,858,864.36                       84,263,268.37

(2) Adjustment Process of Accounting Profit and Income Tax Expense

                                    Item                                            Reporting Period
Profit before taxation                                                                  -30,855,657.48
Current income tax expense accounted at statutory/applicable tax rate                     -7,713,914.37
Influence of applying different tax rates by subsidiaries                                 -2,192,800.02
Influence of income tax before adjustment                                                   -749,229.21
Influence of non-taxable income                                                         -103,780,531.28
Influence of not deductable costs, expenses and losses                                       518,868.07
Influence of deductable loss of unrecognized deferred income tax assets in
                                                                                         -22,338,796.65
prior period
Influence of deductable temporary difference or deductable losses of                      55,552,820.20


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                                       Item                                      Reporting Period
unrecognized deferred income tax in the Reporting Period
Changes in the balance of deferred income tax assets/ liabilities in previous
period due to adjustment of tax rate
Additional deduction of R&D costs                                                       -8,155,281.10
Income tax expense                                                                     -88,858,864.36

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
Income from government
                                                      398,867,359.07                  448,099,427.58
subsidy
Front money and guarantee
                                                      194,816,415.68                  279,858,364.93
deposit
Intercourse funds                                         71,915,009.80               164,755,704.28
Interest income from bank
                                                          38,460,424.38                37,983,778.15
deposits
Others                                                    49,900,426.66                53,936,264.41
             Total                                    753,959,635.59                  984,633,539.35

2) Cash payments related to other operating activities

             Item                             Reporting Period            Same Period of last year
Expense for cash payment                              608,403,775.17                 563,280,960.36
Payment for guarantee deposit,
                                                      141,618,948.53                   93,768,423.51
cash deposit
Payment made on behalf                                     9,670,660.47                11,499,654.13
Expense for bank handling
                                                           2,878,961.21                  5,216,732.77
charges
Others                                                120,570,024.96                  404,575,413.78
             Total                                    883,142,370.34                1,078,341,184.55

3) Other cash received from investment activities

             Item                             Reporting Period            Same Period of last year


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             Item                         Reporting Period                 Same Period of last year
Recovery of loan at call                        2,345,834,176.94                      466,367,371.66
Others                                                 39,792,247.45                    260,630,141.85
Total                                            2,385,626,424.39                       726,997,513.51

4) Other cash paid for investment activities

              Item                         Reporting Period                 Same Period of last year
Payment of loan at call                            271,583,749.03                       174,930,000.00
Others                                                 25,736,148.70                    160,869,856.00
Total                                              297,319,897.73                       335,799,856.00

5) Other cash received from funding activities

                  Item                           Reporting Period            Same Period of last year
Receiving loan at call                                  29,957,440.00                 361,338,700.00
Recovery of margin deposit pledged                         68,792,633.93                197,949,393.49
Lease-related accounts                                                                   34,000,000.00
Others                                                         23,432.92                  2,070,691.00
                  Total                                    98,773,506.85                595,358,784.49

6) Cash Used in Other Financing Activities

                  Item                           Reporting Period            Same Period of last year
Payment of lease-related accounts                         155,109,520.16                236,173,947.51
Deposit as margin for pledge                              117,654,180.32                161,578,386.94
Returing loan at call                                     117,768,871.27                 29,400,000.00
Financing cost                                             21,190,465.55                 18,501,066.06
Others                                                      1,765,552.03                 34,551,700.00
                  Total                                   413,488,589.33                480,205,100.51

(2) Supplemental Information for Consolidated Cash Flow Statement

                     Item                        Reporting Period            Same Period of last year
1. Reconciliation of net profit to net
cash flows generated from operating
activities
Net profit                                                  58,003,206.88                90,756,920.24
Add: Provision for impairment of assets                     13,309,988.75                29,538,732.82
     Credit impairment loss                                 78,608,313.56                71,392,178.06



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                     Item                          Reporting Period          Same Period of last year
  Depreciation of fixed assets, oil-gas
                                                           210,447,096.53             182,931,196.29
assets, and productive biological assets
  Depreciation of right-of-use assets                       28,657,676.02              22,397,201.61
  Amortization of intangible assets                         22,954,726.69              38,706,987.41
  Amortization of long-term prepaid
                                                            40,889,139.75              43,983,314.75
expenses
     Losses on disposal of fixed assets,
     intangible assets and other long-                     -12,782,328.52                  -88,668.35
     lived assets (gains: negative)
  Losses on scrap of fixed assets (gains:
                                                               465,018.35                 199,386.31
negative)
  Losses on changes in fair value (gains:
                                                               638,799.36              -40,362,513.73
negative)
  Finance costs (gains: negative)                          439,621,848.38             449,599,765.91
  Investment loss (gains: negative)                       -737,803,536.05            -322,244,312.89
  Decrease in deferred income tax assets
                                                          -129,818,410.18            -102,340,668.15
(gains: negative)
  Increase    in     deferred    income     tax
                                                             2,283,651.84               -5,615,859.48
liabilities (“-” means decrease)
  Decrease      in     inventories      (gains:
                                                            25,150,562.26            -648,533,766.41
negative)
  Decrease      in    accounts       receivable
generated    from      operating      activities           803,133,784.03            -266,870,721.39
(gains: negative)
  Increase in accounts payable used in
                                                         -1,251,480,426.64           -580,252,243.46
operating activities (decrease: negative)
  Others                                                   -13,538,617.74            -247,958,151.57
  Net cash flow from operating activities                 -421,259,506.73           -1,284,761,222.03
2. Significant investing and financing
activities without involvement of cash
receipts and payments
  Conversion of debt to capital
  Convertible corporate bonds matured
within 1 Year
  Fixed asset under finance lease



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                   Item                             Reporting Period        Same Period of last year
3. Net increase/decrease of cash and
cash equivalent:
  Ending balance of cash                                 5,903,519,802.47          5,159,985,226.06
    Less: Opening balance of cash                        5,968,347,219.03          4,298,056,113.24
  Plus:   Ending     balance    of   cash
equivalents
  Less:   Opening    balance    of   cash
equivalents
Net increase in cash and cash equivalents                  -64,827,416.56            861,929,112.82

(3) Net Cash Paid for Acquisition of Subsidiaries

No such cases in the Reporting Period.

(4) Net Cash Receive from Disposal of the Subsidiaries

                                   Item                                              Amount
Cash or cash equivalents received in the Reporting Period from
                                                                                     302,280,000.00
disposal of subsidiaries in the Current Period
Of which: Sichuan Chengrui                                                            27,280,000.00
           Xi'an Huasheng                                                            220,000,000.00
           Wuhan Industrial Development                                               55,000,000.00
Less: cash and cash equivalents held by subsidiaries on the date of
                                                                                        5,185,649.96
losing control power
Of which: Sichuan Chengrui                                                              1,845,348.16
           Xi'an Huasheng                                                                   8,334.26
           Wuhan Industrial Development                                                 3,331,967.54
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                                      297,094,350.04

(5) Cash and Cash Equivalents

                   Item                               Ending balance            Beginning balance
Cash                                                       5,903,519,802.47        5,968,347,219.03
Including: Cash on hand                                                 9.41                  363.22
Bank deposit on demand                                      5,903,519,793.06       5,968,346,855.81
Ending balance of cash and cash
                                                            5,903,519,802.47       5,968,347,219.03
equivalents


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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, RMB571,737,827.06 is margin
                                                        deposit, pledge is used for borrowing or issuing
                                                        bank acceptance bill, RMB10,764,266.54 is
Monetary assets                    631,118,593.39 financial           supervision      account      fund;
                                                        RMB19,800,000.00 is fixed deposit that can not
                                                        be withdrawn in advance; RMB28,816,499.79 is
                                                        restricted due to other reasons.
Notes receivable                   373,073,971.78 The pledge of make out an invoice
Investment property                106,335,030.70 Mortgage loan
Fixed assets                     1,198,081,326.15 Mortgage loan, finance lease mortgage
                                                        Mortgage loan, mortgage guaranteed by the
Intangible assets                  376,579,273.20
                                                        original shareholder
Construction          in
progress                             78,521,756.73 Finance lease mortgage

         Total                   2,763,709,951.95

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                        77,214,921.83                      6.7114             518,220,226.37
           EUR                        2,730,603.30                      7.0084              19,137,160.17
           EGP                       10,099,414.27                      0.3570               3,605,383.45
           GBP                                 1.32                     8.1365                      10.74
           HKD                       12,160,142.39                      0.8552              10,399,232.17
           CAD                                 6.96                     5.2058                      36.23
           PLN                          991,889.37                      1.5016               1,489,390.47
Accounts receivable
Of which: USD                        99,275,413.45                      6.7114             666,277,009.83
          EUR                            23,449.32                      7.0084                164,342.21


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                                 Ending foreign                             Ending balance
         Item                                           Exchange rate
                             currency balance                              converted to RMB
          EGP                      4,228,915.83                   0.3570          1,509,677.96
          HKD                        34,899,944.11                0.8552         29,846,083.20
          AUD                            49,764.00                4.6145            229,635.98
Other receivables
Of which: USD                       114,917,428.94                6.7114        771,256,832.59
           EGP                            8,000.00                0.3570               2,855.91
           HKD                          892,319.00                0.8552            763,102.29
           YEN                       21,400,000.00                0.0491           1,051,510.40
Short-term borrowings
Of which: USD                        51,764,004.17                6.7114        347,408,937.59
Accounts payable
Of which: USD                        26,802,690.35                6.7114        179,883,576.01
           GBP                            4,419.42                8.1365              35,958.61
           HKD                        4,987,580.96                0.8552           4,265,329.36
Other payables
Of which: USD                           532,849.98                6.7114           3,576,169.36
           EUR                        2,751,663.76                7.0084         19,284,760.30
           EGP                           60,729.10                0.3570              21,679.64
           HKD                       17,985,625.82                0.8552         15,381,127.35
Interest payable
Of which: USD                            28,048.58                6.7114            188,245.24

(2) Notes to Overseas Entities

The significant overseas entities include Hongdin Trading, Hong Kong Konka, Chain Kingdom
Memory Technologies, Kangjietong, Jiali International, Kowin Memory (Hong Kong) and Konka
Mobility. 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



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                                                                                Amount recorded in
         Category                    Amount                 Listed items        the current profit or
                                                                                         loss
                                                              Deferred
Industry support funds              263,841,311.98                                     227,351,711.98
                                                        revenue/Other income
                                                              Deferred
Rewards and subsidies               137,702,485.28                                      90,960,177.86
                                                        revenue/Other income
Tax rebates on software                  7,949,955.87      Other income                  7,949,955.87
Land tax rebates                         1,434,080.24      Other income                  1,433,605.93
Post subsidies                           2,417,628.09      Other income                  2,253,703.66
Subsidies for L/C exports                 249,549.87       Other income                    249,549.87
       Total                        413,595,011.33                                     330,198,705.17

(2) Return of Government Subsidy

No such cases in the Reporting Period.




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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                    Time of losing   Recognition basis for the time of       corresponding
                                                     equity
subsidiary         disposal price       proportio                      control             losing control power               consolidated
                                                    disposal
                                         n (%)                                                                              statements of the
                                                                                                                          disposal price and the
                                                                                                                           disposal investment
                                                                                                                              (RMB’0,000)
                                                                                     The rights and obligations related
Xi'an
                            22,000.00      100.00    Transfer         2022-6-27      to the underlying equity have been               12,128.87
Huasheng
                                                                                                transferred
Wuhan                                                                                The rights and obligations related
Industrial                   5,500.00       55.00    Transfer         2022-6-27      to the underlying equity have been                4,865.34
Development                                                                                     transferred
                                                                                     The rights and obligations related
Sichuan
                             2,728.00       31.00    Transfer         2022-4-15      to the underlying equity have been                2,123.96
Chengrui
                                                                                                transferred

(Continued)



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                  Residual                                                                                                    Amount of other
                                Carrying value                                                      Recognition method
                    equity                          Fair value of                                                              comprehensive
                                  of residual                            Gains or losses from       and main assumption
                 proportion                       residual equity on                                                          income related to
Name of the                      equity on the                               re-measurement of         of fair value of
                 on the date                      the date of losing                                                         former subsidiaries
subsidiary                      date of losing                           residual equity at fair    residual equity on the
                   of losing                       control power                                                               transferred into
                                control power                                value (RMB’0,000)     date of losing control
                   control                          (RMB’0,000)                                                             investment profit or
                                (RMB’0,000)                                                               power
                 power (%)                                                                                                    loss (RMB’0,000)
Xi'an
Huasheng
Wuhan
Industrial              45.00            519.27            4,500.00                      3,980.73      Evaluated price
Development
Sichuan
                        49.00            954.77            4,312.00                      3,357.23      Evaluated price
Chengrui




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2. Changes in Combination Scope for Other Reasons

(1) Subsidiaries Established by the Company in H1 2022

                                                                       Time and
                                                   Shareholding         place of
                                                                                          Method of
          Name             Registered capital          percentage      obtaining
                                                                                          obtaining
                                                          (%)             control
                                                                          power
Jiangxi Konka High-                                                                         Newly
tech Park                        50,000,000.00              100.00     2022-4-27          established
Guizhou Konka New                                                                           Newly
Energy                          100,000,000.00                98.00    2022-2-11          established
Shangrao          Konka
                                                                                            Newly
Electronic Technology
                                                                                          established
Innovation                       30,000,000.00              100.00     2022-4-27
Zhejiang          Konka                                                                     Newly
Electronic                       30,000,000.00              100.00     2022-6-20          established
Zhejiang          Konka                                                                     Newly
Technology Industry              30,000,000.00              100.00     2022-6-20          established

(2) The Company’s Subsidiaries Cancelled and with Distribution of Remaining Assets in H1
2022

                                                         Shareholding                Liquidation
          Name             Registered capital
                                                         percentage (%)             completion time
Shanghai Xinfeng                  10,664,000.00                       51.00                 2022-2-10
Jiangxi           Konka
                                 100,000,000.00                       70.00                 2022-5-25
Industrial Park
Ruichang         Kangrui
                                  10,000,000.00                       70.00                 2022-5-25
Real Estate

(3) Others

① The Company’s subsidiary Hefei KONSEMI introduced strategic investors, which caused the
decrease of the Company’s shareholding proportion to 34.46% and transfer of control power. And
it will no longer be included into the consolidation scope.




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VIII. Equity in Other Entities

1. Equity in Subsidiary

(1) Subsidiaries

                                                                                                                   Holding
                                 Main operating       Registration                                              percentage (%)     Way of
No.                Name                                                           Nature of business
                                      place              place                                                  Direc   Indire    gaining
                                                                                                                 tly     ctly
                                                                                                                                 Establishme
 1                               Guangdong,         Guangdong,                                                   100                 nt or
       Electronics Technology                                          Manufacturing industry
                                 Shenzhen           Shenzhen                                                                     investment
                                                                                                                                 Establishme
 2     Anhui Zhilian             Anhui, Chuzhou     Anhui, Chuzhou     e-Commerce                                        100         nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 3     Haimen Konka              Jiangsu, Nantong   Jiangsu, Nantong   Trade and services                                100         nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 4                               Sichuan,           Sichuan,                                                             100         nt or
       Chengdu Konka Smart                                             Trade and services
                                 Chengdu            Chengdu                                                                      investment
                                                                                                                                 Establishme
 5     Chengdu            Konka Sichuan,            Sichuan,                                                             100         nt or
                                                                       Manufacturing industry
       Electronic                Chengdu            Chengdu                                                                      investment
                                                                                                                                 Establishme
 6                                                                     Computer, telecommunications and other            100         nt or
       Nantong Hongdin           Jiangsu, Nantong   Jiangsu, Nantong
                                                                       electronic equipment manufacturing                        investment


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                                                                                                                   Holding
                                  Main operating      Registration                                              percentage (%)     Way of
No.               Name                                                                Nature of business
                                      place              place                                                  Direc   Indire    gaining
                                                                                                                 tly     ctly
                                                                                                                                 Establishme
 7                               Guangdong,         Guangdong,         Software and information technology               100         nt or
       Youzhihui
                                 Shenzhen           Shenzhen           services                                                  investment
                                                                                                                                 Establishme
 8                               Guangdong,         Guangdong,                                                           100         nt or
       Xiaojia Technology                                              Retail trade
                                 Shenzhen           Shenzhen                                                                     investment
                                                                                                                                 Establishme
 9     Liaoyang         Kangshun Liaoyang,          Liaoyang,                                                            100         nt or
                                                                       Wholesale
       Smart                     Liaoning           Liaoning                                                                     investment
                                                                                                                                 Establishme
 10    Liaoyang         Kangshun Liaoyang,          Liaoyang,          Comprehensive utilization of renewable            100         nt or
       Renewable                 Liaoning           Liaoning           resources                                                 investment
                                                                                                                                 Establishme
 11    Nanjing Konka             Jiangsu, Nanjing   Jiangsu, Nanjing   Wholesale                                         100         nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 12    Chuzhou Konka             Anhui, Chuzhou     Anhui, Chuzhou     Manufacturing industry                            94.9        nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 13                              Guangdong,         Guangdong,                                                           51          nt or
       XingDa HongYe                                                   Manufacturing industry
                                 Zhongshan          Zhongshan                                                                    investment
                                                                                                                                 Establishme
 14    Konka Circuit             Guangdong,         Guangdong,         Manufacturing industry                    100
                                                                                                                                     nt or

                                                                       208
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                                                                                                             Holding
                                     Main operating       Registration                                    percentage (%)     Way of
No.             Name                                                                 Nature of business
                                           place             place                                        Direc   Indire    gaining
                                                                                                           tly     ctly
                                     Shenzhen           Shenzhen                                                           investment
                                                                                                                           Establishme
 15    Konka Soft Electronic         Sichuan, Suining   Sichuan, Suining   Manufacturing industry                  95          nt or
                                                                                                                           investment
                                                                                                                           Establishme
 16    Konka             Hongye                                                                                    90.1        nt or
                                     Sichuan, Suining   Sichuan, Suining   Manufacturing industry
       Electronics                                                                                                         investment
                                                                                                                           Establishme
 17                                  Guangdong,         Guangdong,                                                 100         nt or
       Boluo Precision                                                     Manufacturing industry
                                     Boluo              Boluo                                                              investment
                                                                                                                           Establishme
 18                                  Guangdong,         Guangdong,                                                 100         nt or
       Boluo Konka                                                         Manufacturing industry
                                     Boluo              Boluo                                                              investment
                                                                                                                           Establishme
 19    Anhui Tongchuang              Anhui, Chuzhou     Anhui, Chuzhou     Manufacturing industry          100                 nt or
                                                                                                                           investment
                                                                                                                           Establishme
 20                                  Jiangsu,           Jiangsu,                                                   51          nt or
       Jiangsu Konka Smart                                                 Manufacturing industry
                                     Changzhou          Changzhou                                                          investment
                                                                                                                           Establishme
 21    Anhui            Electrical                                                                                 51          nt or
                                     Anhui, Chuzhou     Anhui, Chuzhou     Manufacturing industry
       Appliance                                                                                                           investment


                                                                           209
Konka Group Co., Ltd.                                    Interim Report 2022



                                                                                                                        Holding
                                     Main operating      Registration                                                percentage (%)     Way of
No.              Name                                                               Nature of business
                                          place             place                                                    Direc   Indire    gaining
                                                                                                                      tly     ctly
                                                                                                                                      Establishme
 22    Frestec Refrigeration         Henan, Xinxiang   Henan, Xinxiang   Manufacturing industry                               51          nt or
                                                                                                                                      investment
                                                                                                                                      Establishme
 23    Frestec          Electrical                                                                                            51          nt or
                                     Henan, Xinxiang   Henan, Xinxiang   Manufacturing industry
       Appliances                                                                                                                     investment
                                                                                                                                      Establishme
 24    Frestec       Household                                                                                                51          nt or
                                     Henan, Xinxiang   Henan, Xinxiang   Manufacturing industry
       Appliances                                                                                                                     investment
                                                                                                                                      Establishme
 25    Frestec Smart Home            Henan, Xinxiang   Henan, Xinxiang   Manufacturing industry                               51          nt or
                                                                                                                                      investment
                                                                                                                                      Establishme
 26                                  Guangdong,        Guangdong,                                                     100                 nt or
       Konka Investment                                                  Capital market services
                                     Shenzhen          Shenzhen                                                                       investment
                                                                                                                                      Establishme
 27    Yibin              Konka                                          Industrial park development and operation            100         nt or
                                     Sichuan, Yibin    Sichuan, Yibin
       Technology Park                                                   management                                                   investment
                                                                                                                                      Establishme
 28                                  Guangdong,        Guangdong,                                                             100         nt or
       Konka Capital                                                     Capital market services
                                     Shenzhen          Shenzhen                                                                       investment
                                                                                                                                      Establishme
 29    Konka Suiyong                 Guangdong,        Guangdong,        Commercial services                                  51
                                                                                                                                          nt or

                                                                         210
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                                                                                                                            Holding
                                     Main operating       Registration                                                   percentage (%)     Way of
No.              Name                                                                   Nature of business
                                          place               place                                                      Direc   Indire    gaining
                                                                                                                          tly     ctly
                                     Shenzhen           Shenzhen                                                                          investment
                                                                                                                                          Establishme
 30                                  Guangdong,         Guangdong,                                                                51          nt or
       Shengxing Industrial                                                  Commercial services
                                     Shenzhen           Shenzhen                                                                          investment
                                                                                                                                          Establishme
 31                                  Guangdong,         Guangdong,           Software and information technology                  51          nt or
       Zhitong Technology
                                     Shenzhen           Shenzhen             services                                                     investment
                                                                                                                                          Establishme
 32                                  Guangdong,         Guangdong,                                                        100                 nt or
       Konka Factoring                                                       Insurance agents (non-bank finance)
                                     Shenzhen           Shenzhen                                                                          investment
                                                                                                                                          Establishme
 33    Beijing             Konka                                                                                          100                 nt or
                                     Beijing            Beijing              Sale of home appliance
       Electronic                                                                                                                         investment
                                                                                                                                          Establishme
 34                                  Tianjin Pilot Free Tianjin Pilot Free                                                        100         nt or
       Konka Leasing                                                         Service Industry
                                     Trade Zone         Trade Zone                                                                        investment
                                                                                                                                          Establishme
 35    Suining Konka Industrial                                              Industrial park development and operation    100                 nt or
                                     Sichuan, Suining   Sichuan, Suining
       Park                                                                  management                                                   investment

       Suining          Electronic                                                                                                        Establishme
 36    Technological                 Sichuan, Suining   Sichuan, Suining     Commercial services                          100                 nt or
                                                                                                                                          investment
       Innovation

                                                                             211
Konka Group Co., Ltd.                              Interim Report 2022



                                                                                                               Holding
                                Main operating     Registration                                             percentage (%)     Way of
No.             Name                                                             Nature of business
                                     place            place                                                 Direc   Indire    gaining
                                                                                                             tly     ctly
                                                                                                                             Establishme
 37    Shanghai Konka           Shanghai         Shanghai          Real estate                               100                 nt or
                                                                                                                             investment
                                                                                                                             Establishme
 38                             Shandong,        Shandong,                                                           62.8        nt or
       Yantai Kangjin                                              Real estate
                                Yantai           Yantai                                                                      investment
                                                                                                                             Establishme
 39                             Guangdong,       Guangdong,                                                  100                 nt or
       Mobile Interconnection                                      Commercial
                                Shenzhen         Shenzhen                                                                    investment
                                                                                                                             Establishme
 40    Sichuan Konka            Sichuan, Yibin   Sichuan, Yibin    Manufacturing industry                            100         nt or
                                                                                                                             investment
                                                                                                                             Establishme
 41    Yibin Smart              Sichuan, Yibin   Sichuan, Yibin    Manufacturing industry                            100         nt or
                                                                                                                             investment
                                                                                                                             Establishme
 42                             Guangdong,       Guangdong,                                                  100                 nt or
       Shenzhen KONSEMI                                            Semiconductors
                                Shenzhen         Shenzhen                                                                    investment
                                                                                                                             Establishme
 43                                                                Software and information technology               100         nt or
       Chongqing Konka          Chongqing        Chongqing
                                                                   services                                                  investment
                                                                                                                             Establishme
 44    Kowin            Memory Guangdong,        Guangdong,        Computer, telecommunications and other    100
                                                                                                                                 nt or

                                                                  212
Konka Group Co., Ltd.                                   Interim Report 2022



                                                                                                                       Holding
                                  Main operating        Registration                                                percentage (%)     Way of
No.             Name                                                                   Nature of business
                                        place                place                                                  Direc   Indire    gaining
                                                                                                                     tly     ctly
       (Shenzhen)                Shenzhen             Shenzhen             electronic equipment manufacturing                        investment
                                                                                                                                     Establishme
 45    Kowin Memory (Hong China,                Hong China,          Hong Wholesale of computers, software and               100         nt or
       Kong)                     Kong                 Kong                 auxiliary equipment                                       investment
                                                                                                                                     Establishme
 46    Konka              Xinyun Yancheng,            Yancheng,            Computer, telecommunications and other            100         nt or
       Semiconductor             Jiangsu              Jiangsu              electronic equipment manufacturing                        investment
                                                                                                                                     Establishme
 47    Industrial   and    Trade Guangdong,           Guangdong,                                                     100                 nt or
                                                                           Wholesale
       Technology                Shenzhen             Shenzhen                                                                       investment
                                                                                                                                     Establishme
 48                              Guangdong,           Guangdong,                                                     100                 nt or
       Shenzhen Nianhua                                                    Commercial services
                                 Shenzhen             Shenzhen                                                                       investment
                                                                                                                                     Establishme
 49                              Hunan,               Hunan,                                                         100                 nt or
       Konka Huazhong                                                      Commercial services
                                 Changsha             Changsha                                                                       investment
                                                                                                                                     Establishme
 50                              Guangdong,           Guangdong,                                                     100                 nt or
       Wankaida                                                            Software development
                                 Shenzhen             Shenzhen                                                                       investment
                                                                                                                                     Establishme
 51    Shenzhen      Chuangzhi Guangdong,             Guangdong,                                                     100                 nt or
                                                                           Wholesale
       Electrical Appliances     Shenzhen             Shenzhen                                                                       investment


                                                                          213
Konka Group Co., Ltd.                                   Interim Report 2022



                                                                                                                   Holding
                                 Main operating         Registration                                            percentage (%)     Way of
No.             Name                                                                      Nature of business
                                        place                place                                              Direc   Indire    gaining
                                                                                                                 tly     ctly
                                                                                                                                 Establishme
 52    Suining Jiarun Property   Sichuan, Suining     Sichuan, Suining      Real estate                          100                 nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 53    Anhui Konka               Anhui, Chuzhou       Anhui, Chuzhou        Manufacturing industry               78                  nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 54    Kangzhi Trade             Anhui, Chuzhou       Anhui, Chuzhou        Wholesale                                    78          nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 55    Telecommunication         Guangdong,           Guangdong,                                                 75      25          nt or
                                                                            Manufacturing industry
       Technology                Shenzhen             Shenzhen                                                                   investment
                                                                                                                                 Establishme
 56                              China,         Hong China,          Hong                                                100         nt or
       Konka Mobility                                                       Commercial
                                 Kong                 Kong                                                                       investment
                                                                                                                                 Establishme
 57                              Guangdong,           Guangdong,                                                 75      25          nt or
       Dongguan Konka                                                       Manufacturing industry
                                 Dongguan             Dongguan                                                                   investment
                                                                                                                                 Establishme
 58    Suining Konka Smart       Sichuan, Suining     Sichuan, Suining      Wholesale                                    100         nt or
                                                                                                                                 investment
                                                                                                                                 Establishme
 59    Chongqing                 Chongqing            Chongqing             Research & experiment development    75
                                                                                                                                     nt or

                                                                            214
Konka Group Co., Ltd.                                       Interim Report 2022



                                                                                                                              Holding
                                     Main operating        Registration                                                    percentage (%)     Way of
No.                Name                                                                   Nature of business
                                           place               place                                                       Direc   Indire    gaining
                                                                                                                            tly     ctly
       Optoelectronic                                                                                                                       investment

       Technology         Research
       Institute
                                                                                                                                            Establishme
 60                                                                          Ecological protection and environmental        67                  nt or
       Yibin Kangrun                 Sichuan, Yibin      Sichuan, Yibin
                                                                             governance services                                            investment
                                                                                                                                            Establishme
 61                                                                          Ecological protection and environmental               63.65        nt or
       Yibin Kangrun Medical         Sichuan, Yibin      Sichuan, Yibin
                                                                             governance services                                            investment

       Yibin              Kangrun                                                                                                           Establishme
 62                                                                          Ecological protection and environmental               40.87        nt or
       Environmental                 Sichuan, Yibin      Sichuan, Yibin
                                                                             governance services                                            investment
       Protection
                                                                                                                                            Establishme
 63    Ningbo              Kanghr                                            Electrical   machinery    and     equipment    60                  nt or
                                     Zhejiang, Ningbo    Zhejiang, Ningbo
       Electrical Appliance                                                  manufacturing                                                  investment
                                                                                                                                            Establishme
 64    Jiangxi Konka                 Jiangxi, Jiujiang   Jiangxi, Jiujiang   Manufacturing and processing                   51                  nt or
                                                                                                                                            investment
                                                                                                                                            Establishme
 65    Jiangxi               High                                                                                                   51          nt or
                                     Jiangxi, Jiujiang   Jiangxi, Jiujiang   Manufacturing and processing
       Transparent Substrate                                                                                                                investment
 66    Jiangsu Konka Special Yancheng,                   Yancheng,           Wholesale                                              51      Establishme

                                                                             215
Konka Group Co., Ltd.                                      Interim Report 2022



                                                                                                                         Holding
                                   Main operating         Registration                                                percentage (%)     Way of
No.               Name                                                                    Nature of business
                                          place                place                                                  Direc   Indire    gaining
                                                                                                                       tly     ctly
       Material                    Jiangsu              Jiangsu                                                                           nt or
                                                                                                                                       investment
                                                                                                                                       Establishme
 67    Xinfeng                     Jiangxi,             Jiangxi,                                                               51          nt or
                                                                              Manufacturing and processing
       Microcrystalline            Nanchang             Nanchang                                                                       investment
                                                                                                                                       Establishme
 68    Konka Huanjia               Dalian, Liaoning     Dalian, Liaoning      Renewable resources processing trade     51                  nt or
                                                                                                                                       investment
                                                                                                                                       Establishme
 69    Konka Huanjia (Henan)       Henan, Lankao        Henan, Lankao         Renewable resources processing trade             51          nt or
                                                                                                                                       investment
                                                                                                                                       Establishme
 70    Shaanxi             Konka                                              Manufacture of household cleaning and            51          nt or
                                   Shaanxi, Xi’an      Shaanxi, Xi’an
       Intelligent                                                            sanitary electrical appliances                           investment
                                                                                                                                       Establishme
 71                                Guangdong,           Guangdong,                                                     51                  nt or
       Pengrun Technology                                                     Trade and services
                                   Shenzhen             Shenzhen                                                                       investment
                                                                                                                                       Establishme
 72                                China,         Hong China,          Hong                                                    51          nt or
       Jiaxin Technology                                                      Trade and services
                                   Kong                 Kong                                                                           investment
                                                                                                                                       Establishme
 73    Konka Ronghe                Zhejiang, Jiaxing    Zhejiang, Jiaxing     Wholesale and retail trade               51                  nt or
                                                                                                                                       investment

                                                                              216
Konka Group Co., Ltd.                                      Interim Report 2022



                                                                                                                                 Holding
                                    Main operating         Registration                                                       percentage (%)     Way of
No.              Name                                                                       Nature of business
                                           place                place                                                         Direc   Indire    gaining
                                                                                                                               tly     ctly
                                                                                                                                               Establishme
 74                                                                            Recycling,    processing   and    sales   of    51                  nt or
       Chongqing Kangxingrui        Chongqing            Chongqing
                                                                               renewable resources                                             investment
                                                                                                                                               Establishme
 75    Chongqing Kangxingrui                                                   Recycling, processing and sales of waste                51          nt or
                                    Chongqing            Chongqing
       Automobile Recycling                                                    resources                                                       investment
                                                                                                                                               Establishme
 76                                 Guangdong,           Guangdong,                                                            51                  nt or
       Konka Unifortune                                                        Trade and services
                                    Shenzhen             Shenzhen                                                                              investment
                                                                                                                                               Establishme
 77                                 China,         Hong China,          Hong                                                           51          nt or
       Jiali International                                                     Trade and services
                                    Kong                 Kong                                                                                  investment
                                                                                                                                               Establishme
 78    Kangjiatong                  Sichuan, Yibin       Sichuan, Yibin        Trade and services                              100                 nt or
                                                                                                                                               investment

       Kanghong          (Yantai)                                                                                                              Establishme
 79                                 Shandong,            Shandong,             Comprehensive utilization of abandoned          51                  nt or
       Environmental
                                    Yantai               Yantai                resources                                                       investment
       Protection
                                                                                                                                               Establishme
 80    Jiangkang      (Shanghai)                                                                                               51                  nt or
                                    Shanghai             Shanghai              Research & experiment development
       Technology                                                                                                                              investment
 81    Konka            Intelligent Guangdong,           Guangdong,            Research & experiment development               51              Establishme

                                                                               217
Konka Group Co., Ltd.                                 Interim Report 2022



                                                                                                                         Holding
                                   Main operating     Registration                                                    percentage (%)     Way of
No.              Name                                                              Nature of business
                                        place            place                                                        Direc   Indire    gaining
                                                                                                                       tly     ctly
       Manufacturing              Shenzhen          Shenzhen                                                                              nt or
                                                                                                                                       investment
                                                                                                                                       Establishme
 82                               Shandong,         Shandong,                                                          51                  nt or
       Yantai Laikang                                                 Commercial services
                                  Yantai            Yantai                                                                             investment
                                                                                                                                       Establishme
 83    Konka Material             Hainan, Haikou    Hainan, Haikou    Commercial services                              100                 nt or
                                                                                                                                       investment

                                                                      Enterprise      management        consulting,                    Establishme
 84                               Guangdong,        Guangdong,                                                         51                  nt or
       Konka Ventures                                                 incubation management, housing leasing,
                                  Shenzhen          Shenzhen                                                                           investment
                                                                      etc.
                                                                                                                                       Establishme
 85    Yibin Konka Incubator      Sichuan, Yibin    Sichuan, Yibin    Commercial services                                      51          nt or
                                                                                                                                       investment
                                                                                                                                       Establishme
 86                               Shandong,         Shandong,         Other   professional    consultation     and             51          nt or
       Yantai Konka
                                  Yantai            Yantai            investigation                                                    investment
                                                                                                                                       Establishme
 87                               Sichuan,          Sichuan,                                                                   51          nt or
       Chengdu Anren                                                  Enterprise incubation management
                                  Chengdu           Chengdu                                                                            investment

       Konka            Enterprise Guizhou,         Guizhou,                                                                           Establishme
 88                                                                   Enterprise management consulting                         51
       Service                    Guiyang           Guiyang                                                                                nt or

                                                                     218
Konka Group Co., Ltd.                                 Interim Report 2022



                                                                                                             Holding
                              Main operating         Registration                                         percentage (%)     Way of
No.             Name                                                                 Nature of business
                                     place                place                                           Direc   Indire    gaining
                                                                                                           tly     ctly
                                                                                                                           investment
                                                                                                                           Establishme
 89    Konka             Eco- Guangdong,           Guangdong,                                              51                  nt or
                                                                         Commercial services
       Development            Shenzhen             Shenzhen                                                                investment
                                                                                                                           Establishme
 90                           Germany,             Germany,                                                100                 nt or
       Konka Europe                                                      International trade
                              Frankfurt            Frankfurt                                                               investment
                                                                                                                           Establishme
 91                           China,         Hong China,          Hong                                     100                 nt or
       Hong Kong Konka                                                   International trade
                              Kong                 Kong                                                                    investment
                                                                                                                           Establishme
 92                           China,         Hong China,          Hong                                             100         nt or
       Hongdin Trading                                                   International trade
                              Kong                 Kong                                                                    investment
                                                                                                                           Establishme
 93                           America,             America,                                                        100         nt or
       Konka North America                                               International trade
                              California           California                                                              investment
                                                                                                                           Establishme
 94    Kanghao Technology     Egypt, Cairo         Egypt, Cairo          International trade                       67          nt or
                                                                                                                           investment
                                                                                                                           Establishme
 95                           China,         Hong China,          Hong                                             100         nt or
       Hongdin Invest                                                    Investment holding
                              Kong                 Kong                                                                    investment


                                                                         219
Konka Group Co., Ltd.                                     Interim Report 2022



                                                                                                                        Holding
                                   Main operating        Registration                                                percentage (%)     Way of
No.               Name                                                                    Nature of business
                                          place                place                                                 Direc   Indire    gaining
                                                                                                                      tly     ctly
                                                                                                                                      Establishme
 96    Chain Kingdom Memory China,                Hong China,          Hong                                                   51          nt or
                                                                              International trade
       Technologies                Kong                 Kong                                                                          investment

       Chain Kingdom Memory                                                                                                           Establishme
 97                                Guangdong,           Guangdong,                                                            51          nt or
       Technologies                                                           Trade and services
                                   Shenzhen             Shenzhen                                                                      investment
       (Shenzhen)
                                                                                                                                      Establishme
 98                                China,         Hong China,          Hong                                                   51          nt or
       Hongjet                                                                Trade and services
                                   Kong                 Kong                                                                          investment
                                                                                                                                      Establishme
 99    Chongqing         Xinyuan                                              Science and technology promotion and            75          nt or
                                   Chongqing            Chongqing
       Semiconductor                                                          application services                                    investment
                                                                                                                                      Establishme
100                                Guangdong,           Guangdong,            Software and information technology             100         nt or
       Kangxiaojia Technology
                                   Shenzhen             Shenzhen              services                                                investment
                                                                                                                                      Establishme
101    Yijiakang           Smart Guangdong,             Guangdong,            Software and information technology             100         nt or
       Terminal                    Shenzhen             Shenzhen              services                                                investment

                                   Guizhou,             Guizhou,
                                                                                                                                      Establishme
102    Guizhou           Kangkai Qiandongnan            Qiandongnan                                                           51          nt or
                                                                              Manufacturing and processing
       Material Technology         Miao and Dong Miao and Dong                                                                        investment
                                   Autonomous           Autonomous

                                                                              220
Konka Group Co., Ltd.                                  Interim Report 2022



                                                                                                                            Holding
                                  Main operating       Registration                                                      percentage (%)     Way of
No.              Name                                                                  Nature of business
                                        place              place                                                         Direc   Indire    gaining
                                                                                                                          tly     ctly
                                  Prefecture         Prefecture
                                  Guizhou,           Guizhou,
                                  Qiannan       Buyi Qiannan       Buyi                                                                   Establishme
103    Guizhou     Konka   New                                                                                                    51          nt or
                                  and           Miao and           Miao Manufacturing and processing
       Material Technology                                                                                                                investment
                                  Autonomous         Autonomous
                                  Prefecture         Prefecture
                                  Guizhou,           Guizhou,
                                  Qiannan       Buyi Qiannan       Buyi                                                                   Establishme
104    Guizhou          Kanggui                                                                                                   100         nt or
                                  and           Miao and           Miao Wholesale and retail trade
       Energy                                                                                                                             investment
                                  Autonomous         Autonomous
                                  Prefecture         Prefecture
                                                                                                                                          Establishme
105                               Lvfeng,            Lvfeng,                                                                      100         nt or
       Guangdong Xinwei                                                   Semiconductors
                                  Guangdong          Guangdong                                                                            investment
                                                                                                                                          Establishme
106    Kangxinrun Renewable                                               Recycling,    processing   and    sales   of            51          nt or
                                  Chongqing          Chongqing
       Resources                                                          renewable resources                                             investment

                                  Guizhou,           Guizhou,
                                                                                                                                          Establishme
107    Guizhou          Kanggui Qiannan         Buyi Qiannan       Buyi                                                   70                  nt or
                                                                          Manufacturing and processing
       Material Technology        and           Miao and           Miao                                                                   investment
                                  Autonomous         Autonomous
                                                                          221
Konka Group Co., Ltd.                                     Interim Report 2022



                                                                                                                              Holding
                                    Main operating       Registration                                                      percentage (%)     Way of
No.               Name                                                                    Nature of business
                                          place              place                                                         Direc   Indire    gaining
                                                                                                                            tly     ctly
                                    Prefecture         Prefecture
                                                                                                                                            Establishme
108    Nantong Kanghai              Jiangsu, Nantong   Jiangsu, Nantong     Real estate                                     51                  nt or
                                                                                                                                            investment
                                                                                                                                            Establishme
109    Chongqing Kangyiyun          Chongqing          Chongqing            Real estate                                     80                  nt or
                                                                                                                                            investment
                                                                                                                                            Establishme
110                                 Guangdong,         Guangdong,                                                                  95.09        nt or
       Kanghong Dongsheng                                                   Commercial services
                                    Shenzhen           Shenzhen                                                                             investment
                                                                                                                                            Establishme
111    Jiangxi              Konka Jiangxi,             Jiangxi,                                                             100                 nt or
                                                                            Commercial services
       Technology Park              Shangrao           Shangrao                                                                             investment

       Shangrao             Konka                                                                                                           Establishme
112                                 Jiangxi,           Jiangxi,                                                             100                 nt or
       Electronic Technological                                             Research & experiment development
                                    Shangrao           Shangrao                                                                             investment
       Innovation
                                    Guizhou,           Guizhou,
                                    Qiannan       Buyi Qiannan       Buyi                                                                   Establishme
113    Guizhou      Konka    New                                            Manufacture      of   non-metallic   mineral            98          nt or
                                    and           Miao and           Miao
       Energy                                                               products                                                        investment
                                    Autonomous         Autonomous
                                    Prefecture         Prefecture


                                                                            222
Konka Group Co., Ltd.                                      Interim Report 2022



                                                                                                                                     Holding
                                    Main operating        Registration                                                        percentage (%)            Way of
No.                Name                                                                    Nature of business
                                         place                 place                                                            Direc     Indire        gaining
                                                                                                                                  tly       ctly
                                                                                                                                                      Establishme
114     Zhejiang            Konka Zhejiang,             Zhejiang,                                                                 100                     nt or
                                                                              Research & experiment development
        Electronic                 Shaoxing             Shaoxing                                                                                      investment
                                                                                                                                                      Establishme
115     Zhejiang            Konka Zhejiang,             Zhejiang,                                                                 51         49           nt or
                                                                              Commercial services
        Technology Industry        Shaoxing             Shaoxing                                                                                      investment

(2) Significant Non-wholly-owned Subsidiary

                                                    Shareholding              The profit or loss
                                                                                                          Declaring dividends              Balance of non-
                                                 proportion of non-          attributable to the
                     Name                                                                                 distributed to non-           controlling interests at
                                                 controlling interests        non-controlling
                                                                                                          controlling interests             the period-end
                                                         (%)                        interests
Chain Kingdom Memory Technologies                      49.00%                      3,451,062.32                                                     70,642,626.66

(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary

                                                                                    Ending balance
        Name                                      Non-current                                                          Non-current
                            Current assets                                Total assets          Current liabilities                            Total liabilities
                                                      assets                                                             liability
Chain       Kingdom
Memory                       1,148,408,463.11       3,267,821.83         1,151,676,284.94         1,006,710,417.32       3,201,455.98             1,009,911,873.30
Technologies

                                                                             223
Konka Group Co., Ltd.                                 Interim Report 2022


     (Continued)

                                                                            Beginning balance
        Name                                  Non-current                                                      Non-current
                          Current assets                           Total assets          Current liabilities                     Total liabilities
                                                 assets                                                          liability
Chain      Kingdom
Memory                    1,118,655,030.15       679,128.95      1,119,334,159.10           984,612,731.74                          984,612,731.74
Technologies

     (Continued)

                                                                                         Reporting Period
                   Name                                                                           Total comprehensive         Cash flows from
                                             Operating revenue              Net profit
                                                                                                         income              operating activities
Chain Kingdom Memory Technologies               3,337,348,013.59                  899,361.51                7,042,984.33            -30,984,221.98

     (Continued)

                                                                                   Same period of last year
                   Name                                                                           Total comprehensive         Cash flows from
                                             Operating revenue              Net profit
                                                                                                         income              operating activities
Chain Kingdom Memory Technologies               3,756,519,723.85              13,367,681.89                11,903,453.19             80,536,781.65




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Konka Group Co., Ltd.                                                              Interim Report 2022


3. Equity in Joint Ventures or Associated Enterprises

(1) Significant Joint Ventures or Associated Enterprises

                                                                   Holding              Accounting
                                 Regi
                        Main                                 percentage (%)           treatment of the
                                 strat
                       operati            Nature of                                    investment to
Name                             ion
                         ng                business        Direc                      joint venture or
                                 plac                                 Indirectly
                        place                                tly                         associated
                                  e
                                                                                         enterprise
Dongfang
Konka          No.1
(Zhuhai) Private                 Zhu      Investment
                       Zhuhai                                                49.95 Equity method
Equity                           hai     management
Investment
Fund (LP)
Shenzhen
                                         Professional
Jielunte               Shenzh    Shen
                                          machinery                          42.79 Equity method
Technology Co.,          en      zhen
                                         manufacturing
Ltd.

(2) Main Financial Information of Significant Associated Enterprise

                                                        Ending balance/Reporting Period
                                             Dongfang Konka No.1
                      Item                                                      Shenzhen Jielunte
                                             (Zhuhai) Private Equity
                                                                              Technology Co., Ltd.
                                              Investment Fund (LP)
Current assets                                        953,194,365.22                    272,906,569.19

Non-current assets                                                                      222,366,556.96

Total assets                                            953,194,365.22                  495,273,126.15

Current liabilities                                                880.00               258,726,574.40

Non-current liabilities                                                                  19,881,055.90

Total liabilities                                                  880.00               278,607,630.30

Equity of non-controlling interests                                                       8,308,540.00

Equity attributable to shareholders of                  953,193,485.22                  208,356,955.85
the Company as the parent
Net assets shares calculated at the                     476,120,145.87                   89,155,941.41
shareholding proportion
Adjusted items
- Goodwill
                                                 225
Konka Group Co., Ltd.                                                         Interim Report 2022


                                                        Ending balance/Reporting Period
                                              Dongfang Konka No.1
                    Item                                                     Shenzhen Jielunte
                                              (Zhuhai) Private Equity
                                                                           Technology Co., Ltd.
                                              Investment Fund (LP)
- Internal unrealized profit
- Others
Carrying value of          investment    to             471,524,694.73               93,935,437.96
associated enterprises
Fair values of equity investments of
joint ventures with quoted prices
Revenue                                                                             182,061,953.26

Financial expenses                                         -229,796.85               -1,371,564.48

Income tax expenses                                                                  -1,984,423.47

Net profit                                               -2,383,969.26                  248,699.00

Net     profit      from       discontinued
operations
Other comprehensive income
Total comprehensive income                               -2,383,969.26                  248,699.00

Dividends received from the joint
venture in the current period

(Continued)

                                                Opening balance/The same period of last year
                                              Dongfang Konka No.1
                    Item                                                 Shenzhen Jielunte
                                              (Zhuhai) Private Equity
                                                                         Technology Co., Ltd.
                                              Investment Fund (LP)
Current assets                                        945,498,650.28                273,102,104.88

Non-current assets                                                                  220,186,531.13

Total assets                                            945,498,650.28              493,288,636.01

Current liabilities                                             730.00              258,379,870.36

Non-current liabilities                                                              18,381,235.37

Total liabilities                                               730.00              276,761,105.73

Equity of non-controlling interests                                                   9,047,500.16

Equity attributable to shareholders of
the Company as the parent                               945,497,920.28              207,480,030.12

Net assets shares calculated at the                     467,638,787.38               94,278,354.91


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Konka Group Co., Ltd.                                                         Interim Report 2022


shareholding proportion
Adjusted items
- Goodwill
- Internal unrealized profit
- Others
Carrying value       of   investment     to
associated enterprises                                 467,638,787.38                94,278,354.91

Fair values of equity investments of
joint ventures with quoted prices
Revenue                                                                             227,686,845.28
Financial expenses                                        -281,006.45                 2,748,106.23

Income tax expenses                                                                   -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

(3) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises

                                                      Ending
                                                                         Beginning balance/The
                  Item                        balance/Reporting
                                                                         Same period of last year
                                                      Period
Associated enterprise:
Total carrying value of investment                 5,708,256,236.06               5,340,671,797.22

The total of following items according
to the shareholding proportions
--Net profit                                            60,936,191.32                27,682,427.99

--Other comprehensive income                               -38,929.34

--Total comprehensive income                            60,897,261.98                27,682,427.99

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.

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Konka Group Co., Ltd.                                                         Interim Report 2022


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
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 in USD of the Company's subsidiaries Hong Kong Konka, Hongdin Trading, Chain
Kingdom Memory Technologies, Hongjet and Jiali, the Company's other primary business
activities are settled in RMB. The currency risk arising from the assets and liabilities of such
balance in USD may affect the Group's operating results. As at 30 June 2022, the Company's
assets and liabilities were mainly the balance in RMB except for the assets or liabilities of a
balance in USD as listed below.



                   Item                          Ending balance              Opening balance
Monetary Assets                                        77,214,921.83              104,127,945.47

Accounts Receivable                                     99,275,413.45              150,964,132.67

Other Receivables                                      114,917,428.94                97,035,927.80

Short-term borrowings                                   51,764,004.17                89,678,741.45

Accounts payable                                        26,802,690.35                35,718,564.93

Other payables                                             532,849.98

Interest payable                                            28,048.58                   106,816.56

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.

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Konka Group Co., Ltd.                                                           Interim Report 2022


2) Interest Rate Risk

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's long-term borrowings from banks
and corporation bonds are at fixed interest rates. The risk of cash flow changes of financial
instruments caused by interest rate changes is mainly related to short-term borrowings from banks
with floating interest rates. The Company's policy is to maintain the floating interest rates of such
borrowings to eliminate the fair value risk of interest rate changes. As at 30 June 2022, the
balance of such short-term borrowings was RMB339,068,997.54.

(2) Credit Risk

As at 30 June 2022, 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
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


                                                 229
Konka Group Co., Ltd.                                                        Interim Report 2022


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 debts 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:




                                               230
Konka Group Co., Ltd.                             Interim Report 2022



Amount as at 30 June 2022:

            Item              Within 1 year           1 to 2 years            2 to 5 years       Over 5 years          Total
Financial assets
Monetary Assets                6,534,638,395.86                                                                      6,534,638,395.86

Trading Financial Assets
Notes Receivable                 934,842,104.68                                                                       934,842,104.68

Accounts Receivable            2,506,800,876.82         201,993,590.82          663,374,977.67         459,386.20    3,372,628,831.51

Other Receivables                866,491,967.46         469,612,386.01          469,773,586.67       4,383,863.74    1,810,261,803.88

Long-term Receivables                                     10,430,400.00                                                10,430,400.00

Other Current Assets           3,342,866,416.60                                                                      3,342,866,416.60

Financial liabilities
Short-term borrowings         10,090,194,886.59                                                                     10,090,194,886.59

Notes payable                  1,133,188,165.45                                                                      1,133,188,165.45

Accounts payable               2,192,583,979.74         263,468,989.22          184,516,934.58       2,856,906.88    2,643,426,810.42
Other payables                   964,345,498.07           94,909,009.20         285,321,124.01      47,569,782.59    1,392,145,413.87

Payroll payable                  181,829,820.35                                                                       181,829,820.35
Non-current liabilities due
                               1,071,913,219.84                                                                      1,071,913,219.84
within one year
Long-term borrowings                                   7,283,243,427.74         691,764,652.55     270,437,976.97    8,245,446,057.26

Bonds Payable                                          1,497,340,146.81         798,238,993.69                       2,295,579,140.50

Long-term payables                                      126,886,493.60            9,514,021.06                        136,400,514.66



                                                                        231
Konka Group Co., Ltd.                                                            Interim Report 2022


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 2022
                      Exchange rate
Item                                                                      Impact on shareholders'
                          fluctuations       Impact on net profit
                                                                                    equity
                     Appreciation of 1%
USD                                              13,340,578.96                   8,723,696.39
                          against RMB
                     Depreciation of 1%
USD                                              -13,340,578.96                  -8,723,696.39
                          against RMB

(2) Sensitivity Analysis of Interest Rate Risk

Sensitivity analysis of interest rate risk is based on the following assumptions:

Changes in market interest rates affect the interest income or expense of financial instruments
with variable interest rates;

For financial instruments with fixed interest rates measured at fair value, market interest rate
changes affect only their interest income or expense;

Changes in the fair values of derivative financial instruments and other financial assets and
liabilities are calculated at the market interest rate on the balance sheet date by discounted cash
flow.

On the basis of the above assumptions and under the condition that other variables remain
unchanged, the impact of reasonable changes in the interest rate on current profits/losses and
equity after tax is as follows:

                                                                  30 June 2022
                          Interest rate
        Item                                                              Impact on shareholders'
                          fluctuations       Impact on net profit
                                                                                    equity

                                                 232
Konka Group Co., Ltd.                                     Interim Report 2022


Borrowings     at
floating interest         Up 0.5%         -1,311,538.20         -1,220,696.86
rates
Borrowings     at
floating interest       Down 0.5%         1,311,538.20           1,220,696.86
rates




                                    233
Konka Group Co., Ltd.                                          Interim Report 2022



X. The Disclosure of Fair Value

1. Ending Fair Value of Assets and Liabilities at Fair Value

                                                                                                 Ending fair value
                                                                    Fair value            Fair value                 Fair value
                             Item
                                                               measurement items at    measurement items     measurement items at          Total
                                                                      level 1              at level 2                 level 3
I. Consistent fair value measurement
i. Trading Financial Assets
1. Financial assets measured at fair value through profit
and loss for the current period
(II) Accounts receivable financing                                                            9,926,723.80                                9,926,723.80
(II) Other equity investments
(III) Other equity instrument investment                                                                               23,841,337.16     23,841,337.16
(IV) Investment properties
(V) Biological assets
(V) Other non-current financial assets                                                                            2,460,095,518.48     2,460,095,518.48
The total amount of assets consistently measured at
                                                                                              9,926,723.80        2,483,936,855.64     2,493,863,579.44
fair value
Total amount of liabilities at fair value
II. Inconsistent fair value measurement
Total assets of inconsistent fair value measurement
Total    liabilities    of    inconsistent   fair   value


                                                                                 234
Konka Group Co., Ltd.          Interim Report 2022



                                                                 Ending fair value
                                    Fair value            Fair value                 Fair value
                        Item
                               measurement items at    measurement items    measurement items at   Total
                                      level 1              at level 2                 level 3
measurement




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Konka Group Co., Ltd.                                                                   Interim Report 2022


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
                     Registr                                                         ing ratio       right ratio
                                                                   Registere
Name                  ation          Nature of business                               to the           to the
                                                                       d capital
                     place                                                          Company          Company
                                                                                       (%)              (%)
OCT        Group Shenzh          Tourism,      real     estate, RMB12
                                                                                    29.999997    29.999997
Co. Ltd.          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
                                Opening balance             Increase      Decrease        Ending balance
     shareholders
OCT Group Co. Ltd.             12,000,000,000.00                                       12,000,000,000.00

(3) Controlling Shareholders’ Shares or Equity and their Changes

      Controlling                                                                  Shareholding percentage
                                        Shareholding amount
      shareholders                                                                             (%)


                                                      236
Konka Group Co., Ltd.                                                            Interim Report 2022


                                                                              Ending      Opening
                             Ending balance         Opening balance
                                                                         percentage      percentage
OCT Group Co. Ltd.          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-2. (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
Shenzhen Yaode Technology Co., Ltd.                              Associated enterprise
Anhui Kaikai Shijie E-commerce Co., Ltd.                         Associated enterprise
Shenzhen Kanghongxing Smart Technology
                                                                 Associated enterprise
Co., Ltd.
Shenzhen Konda E-display Co., Ltd.                               Associated enterprise
Shenzhen Jielunte Technology Co., Ltd.                           Associated enterprise
Shenzhen Kaiyuan Shengshi Technology Co.,
                                                                 Associated enterprise
Ltd.
Puchuang Jiakang Technology Co, Ltd.                             Associated enterprise
Shenzhen         Kangying        Semiconductor
                                                                 Associated enterprise
Technology Co., Ltd.
Wiselite International (HK) Limited                              Associated enterprise
Feidi Technology (Shenzhen) Co., Ltd.                            Associated enterprise
Chuzhou         Kangxin     Health       Industry
                                                                 Associated enterprise
Development Co., Ltd.
Dongguan Guankang Hongyu Investment Co.,
                                                                 Associated enterprise
Ltd.
Yantai Kangyun Industrial Development Co.,
                                                                 Associated enterprise
Ltd.
Shandong Econ Technology Co., Ltd.                               Associated enterprise
Sichuan Chengrui Real Estate Co., Ltd.                           Associated enterprise
Dongguan Kangjia New Materials Technology
                                                                 Associated enterprise
Co., Ltd.
Dongguan Kangzhihui Electronics Co., Ltd.                        Associated enterprise
Shenzhen Jielunte Technology Co., Ltd.                           Associated enterprise

                                                 237
Konka Group Co., Ltd.                                                            Interim Report 2022


                        Name                                Relationship with the Company
Panxu Intelligence Co., Ltd.                                       Associated enterprise
Sichuan Aimijiakang Technology Co., Ltd.                           Associated enterprise
Konka Industrial Development (Wuhan) Co.,
                                                                   Associated enterprise
Ltd.
Feidi Technology (Shenzhen) Co., Ltd. and its
                                                                   Associated enterprise
subsidiaries
E3info (Hainan) Technology Co., Ltd.                               Associated enterprise
Hefei KONSEMI Storage Technology Co.,
                                                                   Associated enterprise
Ltd.
Shandong       Kangfei    Intelligent   Electrical
                                                                   Associated enterprise
Appliances Co., Ltd.
Nantong Kangjian Technology Industrial Park
                                                                   Associated enterprise
Operations and Management Co., Ltd.
Henan       Kangfei      Intelligent    Electrical
                                                                   Associated enterprise
Appliances Co., Ltd.
Shenzhen         Kangying         Semiconductor
                                                                   Associated enterprise
Technology Co., Ltd.

4. Information on Other Related Parties

                        Name                                Relationship with the Company

Chongqing       Lanlv    Moma        Real   Estate
                                                            Subsidiary of associated enterprise
Development Co., Ltd.

Yantai Kangyue Investment Co., Ltd.                         Subsidiary of associated enterprise
HOHOELECTRICAL&FURNITURECO.,LIM
                                                            Minority shareholder of subsidiary
ITED
Chuzhou Hanshang Electric Appliance Co.,
                                                            Minority shareholder of subsidiary
Ltd.

Korea Electric Group Co., Ltd.                              Minority shareholder of subsidiary

Chongqing Liangshan Industrial Investment
                                                            Minority shareholder of subsidiary
Co., Ltd.

Huanjia Group Co., Ltd.                                     Minority shareholder of subsidiary

Hu Zehong                                                   Minority shareholder of subsidiary

Dai Rongxing                                         Close family members of minority shareholders

                                                         The company controlled by the ultimate
Jiangxi Meiji Enterprise Co., Ltd.
                                                       controller of the minority shareholders of the

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Konka Group Co., Ltd.                                                                   Interim Report 2022


                      Name                                         Relationship with the Company
                                                                             subsidiary

Chongqing Ruiyin Renewable Resources Co.,                     The ultimate controller of the minority
Ltd.                                                                shareholders of the subsidiary

(II) Related-party Transactions

1. Related-party transactions of purchase and sale of goods, provision and acceptance of services

(1) Purchasing goods/receiving services

                                                                                          Same period of
               Related party                      Content          Reporting Period
                                                                                             last year
                                         Purchase             of
Chongqing         Ruiyin          Renewable
                                         goods               and      541,543,811.51       1,503,638,982.86
Resources Co., Ltd. and its subsidiaries services

Chuzhou Hanshang Electric Appliance Purchase                  of
                                                                      181,578,952.60        207,875,193.30
Co., Ltd.                           goods
                                     Purchase                 of
Puchuang Jiakang Technology Co, Ltd. goods                            150,151,893.73        163,541,409.57

                                               Purchase       of
OCT    Group      Co.,     Ltd.    and   its
                                               goods         and       25,346,178.36          23,801,411.18
subsidiaries and associates
                                               services
                                               Purchase       of
Korea Electric Group Co., Ltd. and its
                                               goods         and       18,805,740.79          39,114,787.43
subsidiaries
                                               services
Shenzhen Jielunte Technology Co.,
                                         Purchase             of
Ltd. and its subsidiaries as well as its goods                         13,992,143.62          22,652,611.58
associated enterprises
Dongguan Kangzhihui Electronics Co., Purchase                 of
                                                                       13,821,902.86          15,400,576.70
Ltd.                                 goods

HOHO             ELECTRICAL              & Purchase           of
                                                                         9,072,974.63         13,904,763.96
FURNITURE CO., LIMITED                     goods

                                               Purchase       of
Shenzhen Konda E-display Co., Ltd.             goods         and         8,959,207.84         26,475,410.20
                                               services
                                               Purchase       of
Shenzhen       Kangying    Semiconductor
                                               goods         and         8,145,702.87
Technology Co., Ltd.
                                               services




                                                       239
Konka Group Co., Ltd.                                                                Interim Report 2022


                                                                                       Same period of
             Related party                      Content          Reporting Period
                                                                                          last year
                                             Purchase      of
Dongguan Kangjia New             Materials
                                             goods        and         6,976,616.01
Technology Co., Ltd.                         services
Anhui Kaikai Shijie E-commerce Co., Purchase               of
                                                                        21,234.50           7,817,518.74
Ltd. and its subsidiaries           goods
                                             Purchase      of
Subtotal of other related parties            goods        and         2,468,604.98            738,830.75
                                             services

(2) Information of sales of goods and provision of labor service

                                                                                        Same Period of
                 Related party                    Content         Reporting Period
                                                                                           last year
                                                Sales       of
OCT Group Co., Ltd. and its subsidiaries goods             and
                                                                     133,512,390.92        78,699,287.26
and associates                                  render labor
                                       service
                                       Sales     of
Korea Electric Group Co., Ltd. and its goods    and
                                                                     117,013,253.39      181,904,680.78
subsidiaries                           render labor
                                       service
                                         Sales     of
Anhui Kaikai Shijie E-commerce Co., Ltd. goods    and
                                                                      86,686,831.47        86,107,536.96
and its subsidiaries                     render labor
                                         service
Hefei KONSEMI Storage Technology Co., Sales                 of
                                                                      42,085,293.63
Ltd.                                  goods

                                                Sales       of
Chuzhou Hanshang Electric Appliance Co., goods             and
                                                                      35,546,108.63        30,402,393.78
Ltd.                                            render labor
                                                service
                                                Sales       of
                                                goods      and
Sichuan Aimijiakang Technology Co., Ltd.                              25,833,743.92
                                                render labor
                                                service
                                                Sales       of
Shandong Kangfei Intelligent Electrical goods              and
                                                                      21,685,823.71        33,094,053.38
Appliances Co., Ltd.                            render labor
                                                service


                                                   240
Konka Group Co., Ltd.                                                                  Interim Report 2022


                                                                                          Same Period of
                 Related party                     Content         Reporting Period
                                                                                             last year
HOHO ELECTRICAL & FURNITURE Sales                             of
                                                                       15,922,314.20         35,832,964.53
CO., LIMITED                goods
                                                 Sales     of
                                                 goods    and
Shenzhen Konda E-display Co., Ltd.                                     14,036,782.18         23,556,672.37
                                                 render labor
                                                 service
Nantong Kangjian Technology Industrial Render labor
                                                                       14,150,943.39
Park Operations and Management Co., Ltd. service
Shenzhen Jielunte Technology Co., Ltd. Sales             of
                                               goods    and
and its subsidiaries as well as its associated render labor            13,440,177.22         23,197,082.93
enterprises                                    service
Henan     Kangfei        Intelligent   Electrical Sales       of
                                                                       12,773,438.03         18,874,703.89
Appliances Co., Ltd.                              goods

                                                 Sales        of
Dongguan Kangzhihui Electronics Co., goods                 and
                                                                       12,592,625.44         11,344,197.37
Ltd.                                             render labor
                                                 service
                                                 Sales        of
Shenzhen         Kangying        Semiconductor goods       and
                                                                        8,803,735.07
Technology Co., Ltd. and its subsidiaries        render labor
                                                 service
                                                 Sales        of
E3info (Hainan) Technology Co., Ltd. and goods             and
                                                                          563,757.57          5,124,776.56
its subsidiaries                                 render labor
                                                 service
Subtotal of other related parties                                       6,726,787.89          6,321,489.21

2. Information on Related-party Lease

(1) Lease situation

                                                                                            The lease fee
                                                                     The lease fee
                                                                                          confirmed in the
        Leasee                Lessee's name        Category         confirmed in the
                                                                                         same period of last
                                                                   Reporting Period
                                                                                                year
OCT Group Co.                                     Commercial
                          Konka Group Co.,
Ltd.     And       its                             residences            755,425.60             683,385.60
                          Ltd.
subsidiaries                                       and office

                                                    241
Konka Group Co., Ltd.                                                                 Interim Report 2022


                                                                                           The lease fee
                                                                    The lease fee
                                                                                         confirmed in the
        Leasee             Lessee's name            Category       confirmed in the
                                                                                        same period of last
                                                                  Reporting Period
                                                                                               year
                                                   buildings
                        Konka        Ventures    Commercial
OCT Group Co.
                        Development              residences
Ltd.     And      its                                                11,610,366.36          10,456,131.42
                        (Shenzhen)       Co.,    and office
subsidiaries
                        Ltd.                       buildings

3. Information on Related-party Guarantee

(1) The Company was guarantor

                        Contracte
                                        Actual
                               d
                                       guarantee      Cu                                      Execution
                        guarantee
  Secured party                         amount        rre      Start date     End date        accomplish
                         amount
                                      (RMB10,0        ncy                                      ed or not
                        (RMB10,0
                                           00)
                           00)
Anhui                                                 CN
                          6,000.00       5,000.00              2021-7-16     2022-7-16            Not
Tongchuang                                             Y
Anhui                                                 CN
                          3,000.00       3,000.00              2021-10-28    2022-10-27           Not
Tongchuang                                             Y
Anhui                                                 CN
                          5,000.00                             2022-4-14     2023-4-14            Not
Tongchuang                                             Y
Anhui                                                 CN
                          3,000.00       3,000.00               2022-6-2      2023-6-1            Not
Tongchuang                                             Y
Electronics                                           CN
                          7,000.00       7,729.95              2021-10-18    2022-11-14           Not
Technology                                             Y
Electronics                                           CN
                          1,500.00                             2022-4-12     2022-11-14           Not
Technology                                             Y
Electronics                                           CN
                         50,000.00     50,000.00               2021-11-5     2022-7-16            Not
Technology                                             Y
                                                      CN
Sichuan Konka             4,000.00       4,000.00              2022-3-22     2023-3-21            Not
                                                       Y
                                                      CN
Boluo Precision           2,480.11         958.33              2020-8-19     2023-8-19            Not
                                                       Y
                                                      CN
Boluo Precision          12,449.00       2,221.00               2021-7-6      2023-7-5            Not
                                                       Y

                                                    242
Konka Group Co., Ltd.                                                      Interim Report 2022


                        Contracte
                                      Actual
                            d
                                     guarantee     Cu                              Execution
                        guarantee
  Secured party                       amount       rre   Start date   End date     accomplish
                         amount
                                     (RMB10,0      ncy                              ed or not
                        (RMB10,0
                                        00)
                           00)
                                                   CN
Hong Kong Konka          11,000.00   10,402.67            2021-9-8    2021-11-6        Not
                                                   Y
                                                   CN
Hong Kong Konka          10,000.00    9,731.53            2022-2-9     2022-9-5        Not
                                                   Y
                                                   CN
Dongguan Konka            5,000.00    5,000.00           2022-3-18    2023-3-17        Not
                                                   Y
                                                   CN
Dongguan Konka           80,000.00   20,167.98           2021-6-23     2031-5-7        Not
                                                   Y
Telecommunicatio                                   CN
                          7,500.00    2,610.57           2022-5-20    2023-5-20        Not
n Technology                                       Y
                                                   CN
Konka Circuit            20,000.00    5,426.60           2021-5-24    2024-11-30       Not
                                                   Y
Mobile                                             CN
                          5,000.00    4,582.81           2021-8-11    2022-8-11        Not
Interconnection                                    Y
Konka      Xinyun                                  CN
                          6,000.00    1,000.00           2022-5-26    2024-5-25        Not
Semiconductor                                      Y
Konka      Xinyun                                  CN
                         20,000.00    8,277.66           2021-7-12    2022-7-11        Not
Semiconductor                                      Y
Liaoyang                                           CN
                          2,000.00    2,000.00           2021-12-23   2022-12-22       Not
Kangshun Smart                                     Y
Liaoyang                                           CN
                          5,000.00    3,000.00           2022-1-19    2023-1-18        Not
Kangshun Smart                                     Y
                                                   CN
Yibin Smart                980.00       980.00           2022-3-31    2023-3-30        Not
                                                   Y
                                                   CN
XingDa HongYe             5,800.00    5,288.44           2022-2-23    2024-2-23        Not
                                                   Y
                                                   CN
XingDa HongYe             2,000.00    1,081.17           2020-12-25   2023-12-25       Not
                                                   Y
                                                   CN
XingDa HongYe              750.00       443.24           2021-5-31    2023-8-31        Not
                                                   Y
                                                   CN
Jiangxi Konka            10,000.00    3,000.00           2020-11-6    2023-12-1        Not
                                                   Y

                                                 243
Konka Group Co., Ltd.                                                      Interim Report 2022


                        Contracte
                                      Actual
                            d
                                     guarantee     Cu                              Execution
                        guarantee
  Secured party                       amount       rre   Start date   End date     accomplish
                         amount
                                     (RMB10,0      ncy                              ed or not
                        (RMB10,0
                                        00)
                           00)
                                                   CN
Jiangxi Konka             6,000.00    2,500.00           2022-6-26    2023-6-25        Not
                                                   Y
                                                   CN
Jiangxi Konka             5,500.00      456.80           2019-6-26    2022-6-25        Not
                                                   Y
                                                   CN
Jiangxi Konka             6,500.00    1,077.81           2019-10-30   2022-10-30       Not
                                                   Y
                                                   CN
Jiangxi Konka              990.00       990.00           2022-3-10     2024-3-9        Not
                                                   Y
                                                   CN
Jiangxi Konka            10,000.00    5,089.18           2020-9-29    2023-9-29        Not
                                                   Y
                                                   CN
Jiangxi Konka             5,000.00    4,600.00           2020-12-21   2022-12-31       Not
                                                   Y
                                                   CN
Jiangxi Konka             1,000.00      504.99           2020-12-30   2023-12-30       Not
                                                   Y
Xinfeng                                            CN
                          5,000.00    1,742.17           2020-5-19    2023-5-19        Not
Microcrystalline                                   Y
Xinfeng                                            CN
                          3,478.85      662.37           2020-5-29    2022-11-29       Not
Microcrystalline                                   Y
Xinfeng                                            CN
                          2,100.00    1,068.57           2020-12-8    2023-12-8        Not
Microcrystalline                                   Y
Xinfeng                                            CN
                          7,200.00    6,000.00           2021-12-27   2022-12-26       Not
Microcrystalline                                   Y
Xinfeng                                            CN
                          7,200.00    6,000.00           2022-6-29    2023-6-28        Not
Microcrystalline                                   Y
Jiangxi       High
                                                   CN
Transparent              10,000.00      830.39           2019-6-26    2022-6-26        Not
                                                   Y
Substrate
Jiangxi       High
                                                   CN
Transparent               5,000.00    1,320.79            2020-1-8     2023-1-8        Not
                                                   Y
Substrate
Jiangxi       High                                 CN
                          5,000.00      889.08           2019-12-20   2022-12-20       Not
Transparent                                        Y

                                                 244
Konka Group Co., Ltd.                                                      Interim Report 2022


                        Contracte
                                      Actual
                            d
                                     guarantee     Cu                              Execution
                        guarantee
  Secured party                       amount       rre   Start date   End date     accomplish
                         amount
                                     (RMB10,0      ncy                              ed or not
                        (RMB10,0
                                        00)
                           00)
Substrate
Jiangxi       High
                                                   CN
Transparent                990.00       990.00           2022-3-10     2024-3-9        Not
                                                   Y
Substrate
Jiangxi       High
                                                   CN
Transparent               5,975.00    1,054.60           2020-5-29    2022-11-29       Not
                                                   Y
Substrate
Jiangxi       High
                                                   CN
Transparent               6,000.00    2,450.09           2020-7-14    2023-7-14        Not
                                                   Y
Substrate
Ningbo       Kanghr
                                                   CN
Electrical                6,000.00    2,880.00           2020-10-15   2022-7-26        Not
                                                   Y
Appliance
Ningbo       Kanghr
                                                   CN
Electrical                6,000.00    3,000.00           2021-7-12    2022-7-11        Not
                                                   Y
Appliance
                                                   CN
Yibin Kangrun            10,000.00   10,000.00           2020-11-13   2024-12-31       Not
                                                   Y
                                                   CN
Anhui Konka              20,000.00    3,000.00           2021-3-25    2022-3-25        Not
                                                   Y
                                                   CN
Anhui Konka               5,500.00      366.45            2021-4-2     2022-4-2        Not
                                                   Y
                                                   CN
Anhui Konka              12,000.00    5,000.00           2021-4-25    2022-4-25        Not
                                                   Y
                                                   CN
Anhui Konka              28,000.00    7,760.95           2021-8-10    2031-7-15        Not
                                                   Y
                                                   CN
Anhui Konka               7,000.00    7,000.00           2021-10-29   2026-10-26       Not
                                                   Y
Yibin          OCT
Sanjiang                                           CN
                         14,000.00    7,658.00           2019-9-29    2022-9-28        Not
Properties      Co.,                               Y
Ltd.

                                                 245
Konka Group Co., Ltd.                                                         Interim Report 2022


                        Contracte
                                        Actual
                            d
                                      guarantee      Cu                               Execution
                        guarantee
  Secured party                        amount        rre    Start date   End date     accomplish
                         amount
                                      (RMB10,0       ncy                               ed or not
                        (RMB10,0
                                         00)
                           00)
                                                     CN
Econ Technology           1,748.80      1,748.80             2022-5-19   2023-5-18        Not
                                                        Y
                                                     CN
Econ Technology           3,747.44      3,747.44             2022-5-17   2023-5-16        Not
                                                        Y
                                                     CN
Econ Technology           4,996.58      4,996.58             2022-5-18   2023-5-17        Not
                                                        Y
                                                     CN
Econ Technology            249.83         249.83             2022-6-28   2023-6-27        Not
                                                        Y
Anhui      Electrical                                CN
                         13,500.00     12,500.00             2020-7-3     2023-7-1        Not
Appliance                                            Y

Shenzhen
                                                     CN
Overseas Chinese         10,000.00        580.00             2022-5-31   2023-5-30        Not
                                                        Y
Town Co., Ltd.
Foshan      Zhujiang
Media       Creative
                                                     CN
Park         Culture       980.00         300.47             2022-5-17   2023-3-21        Not
                                                        Y
Development Co.,
Ltd.

(2) The Company was secured party

                                  Guarantee        Cur                                Execution
         Guarantor:                 amount         renc     Start date   End date    accomplishe
                                 (RMB’0,000)       y                                  d or not
                                                   CN
Electronics Technology               50,000.00              2021-8-17    2022-8-16       Not
                                                    Y
                                                   CN
OCT Group Co. Ltd.                   70,000.00              2019-7-22    2022-7-22       Not
                                                    Y
                                                   CN
OCT Group Co. Ltd.                  100,000.00              2021-1-8     2024-1-8        Not
                                                    Y
                                                   CN
OCT Group Co. Ltd.                   50,000.00              2021-5-21    2024-5-21       Not
                                                    Y
OCT Group Co. Ltd.                   80,000.00     CN       2021-7-9     2024-7-9        Not

                                                   246
Konka Group Co., Ltd.                                                   Interim Report 2022


                                Guarantee     Cur                               Execution
          Guarantor:             amount       renc   Start date   End date     accomplishe
                               (RMB’0,000)    y                                 d or not
                                               Y
                                              CN
OCT Group Co. Ltd.               100,000.00          2022-6-22    2024-6-21        Not
                                               Y
                                              CN
OCT Group Co. Ltd.               149,500.00          2021-6-24    2024-6-23        Not
                                               Y
Hu Zehong, Liang Ruiling,                     CN
                                   2,591.34          2022-2-23    2024-2-23        Not
Dai Yaojin                                     Y
Hu Zehong, Liang Ruiling,                     CN
                                     529.77          2020-12-25   2023-12-25       Not
Dai Yaojin                                     Y
Hu Zehong, Liang Ruiling,                     CN
                                     217.19          2021-5-31    2023-8-31        Not
Dai Yaojin                                     Y
                                              CN
Zhu Xinming                        1,470.00          2020-11-6    2023-12-1        Not
                                               Y
Jiangxi     Xinzixin    Real                  CN
                                   1,225.00          2022-6-29    2023-6-28        Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                     223.83          2019-6-26    2022-6-25        Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                     528.12          2019-10-30   2022-10-30       Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                     485.10          2022-3-10     2024-3-9        Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                   2,493.70          2020-9-29    2023-9-29        Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                   2,254.00          2020-12-21   2022-12-31       Not
Estate Co., Ltd.                               Y
                                              CN
Zhu Xinming                          247.44          2020-12-30   2023-12-30       Not
                                               Y
Jiangxi     Xinzixin    Real                  CN
                                     853.66          2020-5-19    2023-5-19        Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                     324.56          2020-5-29    2022-11-29       Not
Estate Co., Ltd.                               Y
                                              CN
Zhu Xinming                          523.60          2020-12-8    2023-12-8        Not
                                               Y
                                              CN
Zhu Xinming                        2,940.00          2021-12-27   2022-12-26       Not
                                               Y

                                              247
Konka Group Co., Ltd.                                                   Interim Report 2022


                                Guarantee     Cur                               Execution
          Guarantor:             amount       renc   Start date   End date     accomplishe
                               (RMB’0,000)    y                                 d or not
Jiangxi     Xinzixin    Real                  CN
                                   2,940.00          2022-6-29    2023-6-28        Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                     406.89          2019-6-26    2022-6-26        Not
Estate Co., Ltd.                               Y
                                              CN
Zhu Xinming                          647.19           2020-1-8     2023-1-8        Not
                                               Y
                                              CN
Zhu Xinming                          435.65          2019-12-20   2022-12-20       Not
                                               Y
Jiangxi     Xinzixin    Real                  CN
                                     485.10          2022-3-10     2024-3-9        Not
Estate Co., Ltd.                               Y
Jiangxi     Xinzixin    Real                  CN
                                     516.75          2020-5-29    2022-11-29       Not
Estate Co., Ltd.                               Y
                                              CN
Zhu Xinming                        1,200.54          2020-7-14    2023-7-14        Not
                                               Y
                                              CN
Econ Technology                    3,300.00          2020-11-13   2024-12-31       Not
                                               Y
Chuzhou         State-owned
                                              CN
Assets Management Co.,               660.00          2021-3-25    2022-3-25        Not
                                               Y
Ltd.
Chuzhou         State-owned
                                              CN
Assets Management Co.,                80.62           2021-4-2     2022-4-2        Not
                                               Y
Ltd.
Chuzhou         State-owned
                                              CN
Assets Management Co.,             1,100.00          2021-4-25    2022-4-25        Not
                                               Y
Ltd.
Chuzhou         State-owned
                                              CN
Assets Management Co.,             1,707.41          2021-8-10    2031-7-15        Not
                                               Y
Ltd.
Chuzhou         State-owned
                                              CN
Assets Management Co.,             1,540.00          2021-10-29   2026-10-26       Not
                                               Y
Ltd.
Hu Zehong, Liang Ruiling,                     CN
                                   2,450.00           2018-7-1    2025-12-31       Not
Dai Yaojin                                     Y
Hu Zehong, Liang Ruiling,                     CN
                                   4,899.02           2018-7-1    2025-12-31       Not
Dai Yaojin                                     Y

                                              248
Konka Group Co., Ltd.                                                    Interim Report 2022


                                 Guarantee     Cur                               Execution
       Guarantor:                 amount       renc   Start date   End date     accomplishe
                                (RMB’0,000)    y                                 d or not
Suiyong   Rongxin       Asset                  CN
                                    2,450.00           2018-1-1    2022-12-31       Not
Management Co., Ltd.                            Y
Suiyong   Rongxin       Asset                  CN
                                      980.00           2018-1-1    2022-12-31       Not
Management Co., Ltd.                            Y
Suiyong   Rongxin       Asset                  CN
                                    1,862.00           2018-1-1    2022-12-31       Not
Management Co., Ltd.                            Y
                                               CN
Zhu Xinming                         6,223.00          2021-10-15   2022-10-14       Not
                                                Y
                                               CN
Zhu Xinming                         4,900.00          2021-10-15   2022-10-14       Not
                                                Y
                                               CN
Zhu Xinming                         1,323.00          2021-10-15   2022-10-14       Not
                                                Y
                                               CN
Zhu Xinming                           443.45           2022-1-5    2022-12-31       Not
                                                Y
                                               CN
Zhu Xinming                           283.32           2022-1-5    2022-12-31       Not
                                                Y
                                               CN
Zhu Xinming                           235.95           2022-1-5    2022-12-31       Not
                                                Y
                                               CN
Zhu Xinming                        13,249.19          2022-2-19    2023-2-18        Not
                                                Y
                                               CN
Zhu Xinming                         6,860.00           2022-3-1    2023-2-28        Not
                                                Y
                                               CN
Zhu Xinming                         2,330.54           2022-3-9     2023-3-8        Not
                                                Y
                                               CN
Zhu Xinming                            44.05           2022-1-5    2022-12-31       Not
                                                Y
                                               CN
Zhu Xinming                           443.45           2022-1-5    2022-12-31       Not
                                                Y
                                               CN
Zhu Xinming                           278.55           2022-1-5    2022-12-31       Not
                                                Y
                                               CN
Zhu Xinming                           231.91           2022-1-5    2022-12-31       Not
                                                Y
                                               CN
Zhu Xinming                         1,225.00           2022-6-1    2022-8-31        Not
                                                Y
Zhu Xinming                            44.05   CN      2022-1-5    2022-12-31       Not

                                               249
Konka Group Co., Ltd.                                            Interim Report 2022


                         Guarantee     Cur                               Execution
       Guarantor:         amount       renc   Start date   End date     accomplishe
                        (RMB’0,000)    y                                 d or not
                                        Y
                                       CN
Zhu Xinming                   224.27          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   214.50          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   262.79          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   649.29          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   298.90          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   490.00          2022-1-5     2023-2-27        Not
                                        Y
                                       CN
Zhu Xinming                   224.27          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   210.90          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   224.27          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   260.25          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   210.90          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   298.90          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   224.27          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                     4.58          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   223.85          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                   171.33          2022-1-5     2022-12-31       Not
                                        Y
                                       CN
Zhu Xinming                    93.12          2022-1-5     2022-12-31       Not
                                        Y

                                       250
Konka Group Co., Ltd.                                                       Interim Report 2022


                                    Guarantee     Cur                               Execution
       Guarantor:                    amount       renc   Start date   End date     accomplishe
                                   (RMB’0,000)    y                                 d or not
                                                  CN
Zhu Xinming                              223.85          2022-1-5     2022-12-31       Not
                                                   Y
                                                  CN
Zhu Xinming                              171.33          2022-1-5     2022-12-31       Not
                                                   Y
                                                  CN
Zhu Xinming                               93.12          2022-1-5     2022-12-31       Not
                                                   Y
                                                  CN
Zhu Xinming                            1,470.00          2022-6-1     2022-8-31        Not
                                                   Y
Chuzhou Hanshang Electric                         CN
                                       2,450.00          2022-5-19    2023-5-19        Not
Appliance Co., Ltd.                                Y
Chuzhou Hanshang Electric                         CN
                                       2,083.96          2022-5-19    2023-5-19        Not
Appliance Co., Ltd.                                Y
Yuan Shengxiang, Yudong
                                                  CN
Environmental       Protection         6,370.00          2020-8-19    2025-10-31       Not
                                                   Y
Technology Co., Ltd.
Shenzhen      Henglongtong
Technology        Co.,     Ltd.,
Guizhou             Huajinrun
Technology        Co.      Ltd.,
                                                  CN
Huaying              Gaokede             488.37          2018-1-1     2021-12-31       Not
                                                   Y
Electronics       Technology
Co.,      Ltd.,         Huaying
Gaokelong          Electronics
Technology Co., Ltd.
Shenzhen      Henglongtong
Technology        Co.,     Ltd.,
Guizhou             Huajinrun
Technology        Co.      Ltd.,
                                                  CN
Huaying              Gaokede             552.72          2018-1-1     2021-12-31       Not
                                                   Y
Electronics       Technology
Co.,      Ltd.,         Huaying
Gaokelong          Electronics
Technology Co., Ltd.
Shenzhen      Henglongtong                        CN
                                         735.00          2018-1-1     2021-12-31       Not
Technology        Co.,     Ltd.,                   Y

                                                  251
Konka Group Co., Ltd.                                                         Interim Report 2022


                                      Guarantee     Cur                               Execution
        Guarantor:                     amount       renc   Start date   End date     accomplishe
                                     (RMB’0,000)    y                                 d or not
Guizhou               Huajinrun
Technology          Co.      Ltd.,
Huaying                Gaokede
Electronics         Technology
Co.,        Ltd.,         Huaying
Gaokelong            Electronics
Technology          Co.,     Ltd.,
Shenzhen Baili Yongxing
Technology Co., Ltd.
Konka                  Ventures
                                                    CN
Development          (Shenzhen)          1,322.54          2021-12-16   2022-12-15       Not
                                                     Y
Co., Ltd.
AUJET               INDUSTRY                        US
                                         3,316.81           2021-5-1    2023-12-31       Not
LIMITED                                              D
AUJET               INDUSTRY                        US
                                         1,029.00           2020-9-1    2023-12-31       Not
LIMITED                                              D
Guizhou               Huajinrun
Technology          Co.      Ltd.,
Guizhou                   Jiaguida
                                                    US
Technology          Co.,     Ltd.,         879.80           2018-1-1    2021-12-31       Not
                                                     D
Guangan                    Ouqishi
Electronic Technology Co.,
Ltd.
Shenzhen             Unifortune
                                                    US
Supply Chain Management                  1,869.84          2021-6-21    2022-12-31       Not
                                                     D
Co., Ltd.
Shenzhen             Unifortune
                                                    US
Supply Chain Management                  1,112.30          2021-6-22    2022-12-31       Not
                                                     D
Co., Ltd.
Wu     Guoren        and     Xiao                   US
                                         6,933.50          2019-12-31   2024-12-31       Not
Yongsong                                             D

4. Borrowings of Funds




                                                    252
Konka Group Co., Ltd.                                                Interim Report 2022


                                                          Cur
                                                                              Maturity
       Name of related parties           Amount           ren   Start date
                                                                                date
                                                          cy
Borrowing:
                                                          CN
OCT Group Co. Ltd.                      510,910,000.00          2021-10-9    2024-2-25
                                                          Y
                                                          CN
OCT Group Co. Ltd.                      200,000,000.00          2021-11-16   2024-2-25
                                                          Y
                                                          CN
OCT Group Co. Ltd.                     1,500,000,000.00         2022-1-10    2024-2-25
                                                          Y
                                                          CN
OCT Group Co. Ltd.                      500,000,000.00          2022-5-19    2024-2-25
                                                          Y
                                                          CN
OCT Group Co. Ltd.                      700,000,000.00          2022-5-26    2024-2-25
                                                          Y
Chuzhou       Hanshang      Electric                      CN
                                        105,350,000.00           2022-2-1    2023-1-31
Appliance Co., Ltd.                                       Y
Chuzhou       Hanshang      Electric                      CN
                                          4,900,000.00          2022-5-30    2023-5-29
Appliance Co., Ltd.                                       Y
Konka      Industrial   Development                       CN
                                          4,500,000.00          2022-5-25    2023-5-24
(Wuhan) Co., Ltd.                                         Y
                Total                  3,525,660,000.00

Lending:
Chongqing Lanlv Moma Real Estate                          CN
                                        188,430,000.00          2020-11-25   2021-11-24
Development Co., Ltd.                                     Y
Yantai Kangyue Investment Co.,                            CN
                                        128,527,000.00          2021-12-16   2022-12-15
Ltd.                                                      Y
Chuzhou Kangxin Health Industry                           CN
                                        152,880,000.00          2021-12-18   2022-12-17
Development Co., Ltd.                                     Y
Chuzhou Kangxin Health Industry                           CN
                                          7,350,000.00           2022-1-6     2023-1-4
Development Co., Ltd.                                     Y
Chuzhou Kangxin Health Industry                           CN
                                        167,580,000.00          2022-3-26    2023-3-24
Development Co., Ltd.                                     Y
Chuzhou Kangxin Health Industry                           CN
                                         13,592,600.00          2022-3-22    2023-3-20
Development Co., Ltd.                                     Y
Chuzhou Kangjin Health Industrial                         CN
                                         58,800,000.00          2021-9-16    2022-9-15
Development Co., Ltd.                                     Y
Chuzhou Kangjin Health Industrial                         CN
                                         74,436,380.39          2022-2-26    2022-8-31
Development Co., Ltd.                                     Y
                                          253
Konka Group Co., Ltd.                                                 Interim Report 2022


                                                           Cur
                                                                               Maturity
       Name of related parties            Amount           ren   Start date
                                                                                 date
                                                           cy
Yantai       Kangyun       Industrial                      CN
                                         100,200,000.00          2021-11-23   2022-11-22
Development Co., Ltd.                                      Y
Yantai       Kangyun       Industrial                      CN
                                           9,490,000.00          2021-11-22   2022-8-24
Development Co., Ltd.                                      Y
Yantai       Kangyun       Industrial                      CN
                                          13,940,000.00          2021-12-8    2022-8-24
Development Co., Ltd.                                      Y
Yantai       Kangyun       Industrial                      CN
                                           3,230,000.00          2021-12-29   2022-8-24
Development Co., Ltd.                                      Y
Yantai       Kangyun       Industrial                      CN
                                           5,640,000.00          2022-1-12    2022-8-24
Development Co., Ltd.                                      Y
Yantai       Kangyun       Industrial                      CN
                                          10,200,000.00          2022-3-17    2023-1-19
Development Co., Ltd.                                      Y
Yantai       Kangyun       Industrial                      CN
                                          34,000,000.00          2022-5-23    2022-12-30
Development Co., Ltd.                                      Y
Yantai       Kangyun       Industrial                      CN
                                          25,000,000.00           2022-6-1    2022-12-30
Development Co., Ltd.                                      Y
Dongguan      Guankang       Hongyu
Investment     Co.,     Ltd.(Original                      CN
                                         196,000,000.00           2021-8-6     2022-8-5
name:Dongguan Konka Investment                            Y
Co., Ltd.)
Sichuan Chengrui Real Estate Co.,                          CN
                                         147,245,000.00          2022-1-21    2022-12-7
Ltd.                                                       Y
Chongqing     Liangshan    Industrial                      CN
                                         100,000,000.00          2021-12-2    2022-11-28
Investment Co., Ltd.                                       Y
Chongqing     Liangshan    Industrial                      CN
                                          75,247,953.20          2021-12-24   2022-12-23
Investment Co., Ltd.                                       Y
Xi'an Huasheng Jiacheng Real Estate                        CN                 2022-9-30
                                          20,272,400.00           2022-1-5
Co., Ltd.                                                  Y
Xi'an Huasheng Jiacheng Real Estate                        CN                 2022-9-30
                                             200,000.00          2022-1-18
Co., Ltd.                                                  Y
Xi'an Huasheng Jiacheng Real Estate                        CN                 2022-9-30
                                           1,640,000.00          2022-4-18
Co., Ltd.                                                  Y
Xi'an Huasheng Jiacheng Real Estate                        CN                 2022-9-30
                                        1,051,700,000.00         2022-5-17
Co., Ltd.                                                  Y
Shandong Econ Technology Co.,             50,000,000.00    CN    2022-3-22    2022-12-31

                                           254
  Konka Group Co., Ltd.                                                            Interim Report 2022


                                                                    Cur
                                                                                            Maturity
         Name of related parties                   Amount           ren     Start date
                                                                                              date
                                                                     cy
  Ltd.                                                               Y
  Shandong Econ Technology Co.,                                     CN
                                                    83,191,149.03           2022-3-28      2022-12-31
  Ltd.                                                               Y
  Shandong Econ Technology Co.,                                     CN
                                                    49,960,000.00           2022-3-30      2022-12-31
  Ltd.                                                               Y
                    Total                        2,768,752,482.62

  5. Information on Assets Transfer and Debt Restructuring by Related Party

                                                                                      Same period of
              Name                           Content            Reporting Period
                                                                                          last year
                                        Transfer of patents,
  OCT       Group      and    its
                                        software copyrights         12,843,396.23
  subsidiaries and associates
                                          and trademarks
               Total                                                12,843,396.23

  5. Information on Remuneration for Key Management Personnel

                                             Reporting Period             Same period of last year
                   Item
                                               (RMB’0,000)                    (RMB’0,000)
         Total remuneration                                    737.41                         1,000.44

  (III) Balances with Related Party

  1. Accounts Receivable

                               Ending balance                             Opening balance
Related party             Carrying            Bad debt                                     Bad debt
                                                                Carrying balance
                          balance             provision                                    provision
Accounts
receivable:
OCT      Group
Co., Ltd. and          236,582,796.81          5,082,435.61         112,295,325.56          2,448,228.43
its subsidiaries
and associates
Shenzhen
Yaode                  137,931,418.85         68,528,250.38         131,032,162.46        65,516,081.23
Technology
Co., Ltd.




                                                     255
  Konka Group Co., Ltd.                                                  Interim Report 2022


                           Ending balance                         Opening balance
Related party        Carrying         Bad debt                                   Bad debt
                                                         Carrying balance
                     balance          provision                                  provision
HOHO
ELECTRICA
L             &    118,073,849.53      9,374,854.36         113,606,433.75        7,481,903.77
FURNITURE
CO.,
LIMITED
Anhui Kaikai
Shijie        E-
commerce Co.,       95,060,834.88      5,641,125.48         148,730,451.88        8,135,088.28
Ltd. and its
subsidiaries
Shenzhen
Kanghongxing
Smart               39,956,322.21     14,883,305.61          39,940,213.90        6,151,331.52
Technology
Co., Ltd.
Chuzhou
Hanshang
Electric            20,187,948.19           411,834.14       45,393,066.82          926,018.56
Appliance Co.,
Ltd.
Shenzhen
Konda         E-    11,165,355.20           227,773.25       12,099,780.90          247,013.76
display     Co.,
Ltd.
Korea Electric
Group       Co.,    11,324,072.76           231,011.08         7,104,826.83         144,938.56
Ltd. and its
subsidiaries
Shenzhen
Jielunte
Technology
Co., Ltd. and         9,497,073.90          193,740.31       22,468,132.66          458,349.90
its subsidiaries
as well as its
associated
enterprises
Subtotal      of
other related       21,772,079.57           480,578.77       20,262,488.58          438,909.17
parties
     Total         701,551,751.90    105,054,908.99         652,932,883.34      91,947,863.18
Financing
accounts
receivable/not
es receivable:
Korea Electric
Group       Co.,    51,300,000.00                            15,000,000.00
Ltd. and its
subsidiaries


                                               256
  Konka Group Co., Ltd.                                                    Interim Report 2022


                             Ending balance                         Opening balance
Related party        Carrying           Bad debt                                   Bad debt
                                                           Carrying balance
                     balance            provision                                  provision
Chuzhou
Hanshang
Electric              2,000,000.00                             14,000,000.00
Appliance Co.,
Ltd.
Shenzhen
Kaiyuan
Shengshi              5,676,044.81
Technology
Co., Ltd.
Anhui Kaikai
Shijie        E-
commerce Co.,              92,560.46                             1,815,713.26
Ltd. and its
subsidiaries
     Total          59,068,605.27                              30,815,713.26
Other
receivables:
Chongqing
Liangshan
Industrial         179,857,668.24        3,669,096.43         223,196,349.34        4,553,205.53
Investment
Co., Ltd.
Jiangxi Meiji
Enterprise Co.,     93,512,640.31       52,729,155.43          93,512,640.31      52,729,155.43
Ltd.
Dai Rongxing        81,507,850.71       81,507,850.71          79,974,500.96      52,816,781.04
Shenzhen
Kanghongxing
Smart               36,522,782.39       22,998,096.70          36,670,149.78      23,809,925.53
Technology
Co., Ltd.
OCT      Group
Co., Ltd. and       35,009,433.26       20,189,768.54          30,429,787.06      19,968,912.07
its subsidiaries
and associates
Huanjia Group       25,083,675.53       17,507,082.35          25,083,675.53      17,302,185.43
Co., Ltd.
HOHO
ELECTRICA
L             &       2,354,929.59            235,963.94         2,237,153.78         224,162.83
FURNITURE
CO.,
LIMITED
Hu Zehong             2,314,963.85             47,225.26
Subtotal      of
other related             625,877.36           11,890.29          117,002.15           46,468.84
parties


                                                 257
  Konka Group Co., Ltd.                                                 Interim Report 2022


                             Ending balance                      Opening balance
Related party        Carrying            Bad debt                               Bad debt
                                                        Carrying balance
                      balance            provision                              provision
    Total          456,789,821.24      198,896,129.65      491,221,258.91    171,450,796.70
Prepayments:
OCT       Group
Co., Ltd. and        17,939,748.00
its subsidiaries
and associates
Puchuang
Jiakang              12,349,525.00
Technology
Co, Ltd.
Shenzhen
Kanghongxing
Smart                 4,298,225.15                            4,298,225.15
Technology
Co., Ltd.
HOHO
ELECTRICA
L              &      2,968,378.45
FURNITURE
CO.,
LIMITED
Shenzhen
Kangying
Semiconductor         2,637,436.84
Technology
Co., Ltd.
Wiselite
International                                                 1,534,918.13
(HK) Limited
Subtotal      of
other related             616,553.49                           961,888.99
parties
      Total          40,809,866.93                            6,795,032.27
Current
portion       of
non-current
assets:
Feidi
Technology
(Shenzhen)            3,283,943.14                          10,395,523.78
Co., Ltd. and
its subsidiaries
      Total           3,283,943.14                          10,395,523.78
Other current
assets:




                                               258
  Konka Group Co., Ltd.                                           Interim Report 2022


                            Ending balance                  Opening balance
Related party         Carrying         Bad debt                           Bad debt
                                                   Carrying balance
                      balance          provision                          provision
Xi'an
Huasheng
Jiacheng Real      1,073,812,400.00
Estate      Co.,
Ltd.
Chuzhou
Kangxin
Health              352,232,224.99                    339,338,066.67
Industry
Development
Co., Ltd.
Chongqing
Lanlv Moma
Real      Estate    212,842,153.29                    205,263,079.97
Development
Co., Ltd.
Dongguan
Guankang
Hongyu
Investment
Co.,        Ltd.
(formerly           209,746,028.99                    211,662,473.43
known         as
Dongguan
Konka
Investment
Co., Ltd.)
Yantai
Kangyun
Industrial          205,395,866.69                    127,164,360.00
Development
Co., Ltd. and
its subsidiaries
Shandong
Econ
Technology          183,456,400.95                    427,620,131.62
Co., Ltd. and
its subsidiaries
Yantai
Kangyue             155,032,123.56                    149,862,482.00
Investment
Co., Ltd.
Sichuan
Chengrui Real       152,513,098.89
Estate      Co.,
Ltd.
OCT       Group
Co., Ltd. and       135,296,201.13                    163,287,310.66
its subsidiaries
and associates

                                             259
  Konka Group Co., Ltd.                                                     Interim Report 2022


                              Ending balance                          Opening balance
Related party         Carrying           Bad debt                                   Bad debt
                                                          Carrying balance
                        balance          provision                                  provision

    Total          2,680,326,498.49                         1,624,197,904.35

Long-term
receivables:
Feidi
Technology
(Shenzhen)                                                        565,099.14
Co., Ltd. and
its subsidiaries
      Total                                                       565,099.14



  2. Accounts Payable

                                                        Ending carrying      Opening carrying
                      Related party
                                                            balance              balance
  Accounts payable:
  Chuzhou Hanshang Electric Appliance Co., Ltd.            33,265,817.40          46,950,863.88
  OCT Group Co., Ltd. and its subsidiaries and             16,728,947.13           9,087,624.55
  associates
  Shenzhen Jielunte Technology Co., Ltd. and its           15,933,984.76          30,500,867.67
  subsidiaries as well as its associated enterprises
  Korea Electric Group Co., Ltd. and its subsidiaries      10,557,590.91           9,047,641.17
  Shenzhen Konda E-display Co., Ltd.                        7,125,686.93          15,522,755.99
  Dongguan Kangjia New Materials Technology Co.,            5,387,512.62           2,133,853.64
  Ltd.
  Anhui Kaikai Shijie E-commerce Co., Ltd. and its          4,368,888.21           4,370,387.10
  subsidiaries
  Chongqing Ruiyin Renewable Resources Co., Ltd.            4,143,953.82          10,737,902.34
  and its subsidiaries
  Dongguan Kangzhihui Electronics Co., Ltd.                 3,186,815.31           6,435,302.72
  Subtotal of other related parties                         9,665,201.04           9,864,760.22
                           Total                          110,364,398.13        144,651,959.28
  Notes payable:
  Puchuang Jiakang Technology Co, Ltd.                     12,690,179.40          22,412,418.23
  Shenzhen Jielunte Technology Co., Ltd. and its           11,803,197.61           8,933,479.14
  subsidiaries
  Korea Electric Group Co., Ltd. and its subsidiaries       9,642,827.80          15,984,491.27
  Panxu Intelligence Co., Ltd. and its subsidiaries         9,436,111.19           4,782,566.22
  Dongguan Kangjia New Materials Technology Co.,            6,251,201.46           6,265,841.17
  Ltd.

                                               260
Konka Group Co., Ltd.                                                     Interim Report 2022


                                                      Ending carrying     Opening carrying
                    Related party
                                                          balance              balance
Chuzhou Hanshang Electric Appliance Co., Ltd.             5,000,000.00
                         Total                           54,823,517.46          58,378,796.03
Contractual liabilities/other current liabilities:
OCT Group Co., Ltd. and its subsidiaries and             43,369,937.39          46,611,404.78
associates
Sichuan Aimijiakang Technology Co., Ltd.                  6,668,541.05           6,360,494.53
Shenzhen Konda E-display Co., Ltd.                        4,165,137.82
Subtotal of other related parties                         1,754,465.28           1,175,786.84
                         Total                           55,958,081.54          54,147,686.15
Other payables:
Chuzhou Hanshang Electric Appliance Co., Ltd.           138,144,081.59        130,054,989.90
Shandong Econ Technology Co., Ltd. and its               33,477,708.16          20,241,596.71
subsidiaries
Korea Electric Group Co., Ltd. and its subsidiaries       7,563,796.72           2,340,545.36
OCT Group Co., Ltd. and its subsidiaries and              5,637,591.13           4,008,920.58
associates
Shenzhen Kanghongxing Smart Technology Co.,               5,348,030.00           1,354,030.00
Ltd.
Konka Industrial Development (Wuhan) Co., Ltd.            4,520,876.71
Feidi Technology (Shenzhen) Co., Ltd. and its             2,137,895.10           6,503,608.50
subsidiaries
Dongguan Kangjia New Materials Technology Co.,              209,400.00           4,923,662.92
Ltd.
E3info (Hainan) Technology Co., Ltd. and its                150,383.08          50,166,438.36
subsidiaries
Guangdong Wanrun Tongheng Cultural & Tourism                                  120,212,000.00
Development Co., Ltd.
Subtotal of other related parties                        11,178,550.28           8,616,834.78
                         Total                          208,368,312.77        348,422,627.11

XII. Contingency

(1) Before the Company acquired Jiangxi Konka New Material, Jiangxi Konka New Material and
its subsidiaries Xinfeng Microcrystalline and Jiangxi High Transparent Substrate (formerly
known as Nano-Grystallized Glass) provided joint and several liability guarantee for the loans
from Nanchang Rural Commercial Bank Co., Ltd. to Jiangxi Xinxin Jian'an Engineering, Jiangxi
Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology, related parties of
former controlling shareholders of Jiangxi Konka New Material, and Nanchang Rural
Commercial Bank Co., Ltd. then transferred the claims to China Great Wall AMC Jiangxi Branch.
For the failure of Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material and
Jiangxi Shanshi Science and Technology to repay the borrowings on time, China Great Wall


                                             261
Konka Group Co., Ltd.                                                            Interim Report 2022


AMC Jiangxi Branch filed a lawsuit requesting Jiangxi Xinxin Jian'an Engineering, Jiangxi
Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology to repay the loan
principal amounting to RMB300 million and the liquidated damage and interest arising from it
and guarantors Jiangxi Konka New Material, Xinfeng Microcrystalline and Jiangxi High
Transparent Substrate to bear joint and several liability for such debts.

On October 31, 2019, Jiangxi Provincial Superior People’s Court ruled in the first instance that
Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi Shanshi
Technology should repay to China Great Wall AMC Jiangxi Branch the loan principal of
RMB300 million and the interest and liquidated damage arising from it within 10 days from the
effective date of the judgment, and Jiangxi Konka New Material, Zhu Xinming, Leng Sumin,
Nano-Grystallized Glass, Xinfeng Microcrystalline should bear joint and several liability for all
debts recognized in this judgment. The defendants appealed against the first-instance judgment
and the Supreme People's Court accepted the appeal. On March 24, 2021, the Supreme People's
Court of the People's Republic of China made the following ruling: I. Civil Judgment (2018)
G.M.CH. No. 110 made by Jiangxi Provincial Superior People's Court is abrogated; II. This case
is remanded to Jiangxi Provincial Superior People's Court for retrial. As of the date of issuance of
this report, the case is still being tried in the first instance.

The actual controller of Jiangxi 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.

(2) As for the dispute of the Company with Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo
Zongwu and Shenzhen Yaode Technology Co., Ltd. on share repurchase, since the other party did
not actively perform the repurchase obligation, the Company filed a lawsuit with the People's
Court of Nanshan District, Shenzhen. The amount of the subject matter involved in the lawsuit is
RMB249 million. On November 22, 2021, the Company applied to Shenzhen Nanshan District
People's Court for property preservation. As at the date of issuance of this report, no valid
judgment has been made for this case.

(3) As the acceptor failed to pay the commercial acceptance bills held by the Company upon
maturity, the Company, as the plaintiff, requested debtors Hongtu Sanpower Technology Co.,

                                                     262
Konka Group Co., Ltd.                                                            Interim Report 2022


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.
to bear joint and several liability for the bills and the overdue interest. In July 2019, the company
filed a lawsuit with the court, and the court has preserved the defendant's corresponding property.
As at the date of issuance of this report, property execution is ongoing.

(4) The amount of the subject matter involved in 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
over the right of recourse for bills is RMB200 million and the corresponding interest. In
September 2020, the Company filed a lawsuit with Wuhan Intermediate People's Court, and the
Court order the defendant to pay Konka Group the bills and interest. As of the date of this report,
the case is closed.

(5) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Unifortune and Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology
(Shenzhen) Co., Ltd., Shenzhen Hongyao Dingsheng Investment Management Co., Ltd.,
Shenzhen Xiangrui Yingtong Investment Management Co., Ltd., Luo Jingxia, Luo Zongwu, Luo
Zongyin, Luo Zaotong and Luo Saiyin over contracts is RMB155 million. On January 24, 2022,
the Intermediate People's Court of Shenzhen Municipality, Guangdong, a public announcement
on serving Civil Ruling (2021) Y. 03 M.CH. No. 5253 and the notice on sealing, distraining and
freezing of properties to the other party because some principals of the other party were missing.
The Court ruled to seal, distrain and freeze the properties of RMB155 million held by the
respondents Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo Technology (Shenzhen)
Co., Ltd., Shenzhen Hongyao Dingsheng Investment Management Co., Ltd., Shenzhen Xiangrui
Yingtong Investment Management Co., Ltd., Luo Jingxia, Luo Zongwu, Luo Zongyin, Luo
Zaotong and Luo Saiyin. As of the date of issuance of this report, the case is still under trial.

(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the
Company, as the plaintiff, filed a lawsuit to the court on the matured bills amounting to RMB300
million, requesting the bill acceptor Shanghai Huaxin and prior parties involved to bear joint and
several liability for the bills and liquidated damage and interest. As at the date of issuance of this
report, the case is on the stage of execution.

(7) The amount of the subject matter involved in the dispute between the Company's subsidiaries
Frestec Refrigeration, Anhui Konka, Konka Material and Anhui Tongchuang (plaintiff) and
Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Lin
Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., Chuangfu Commerce &
Trade Plaza Real Estate Development (Huizhou) Co., Ltd. and Puning Junlong Trade Co., Ltd.
(defendant) over contracts is RMB380 million. As at the date of issuance of this report, no valid
judgment has been made for this case.

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Konka Group Co., Ltd.                                                           Interim Report 2022


(8) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Investment (plaintiff) and Elion Resources Group Co., Ltd. and Elion Ecological Co., Ltd.
(defendant) over capital increase is RMB98 million. The court of arbitration issued an award on
27 January 2022. On 16 February 2022, the enforcement has been filed. On 20 July 2022, the
recoveries of RMB15 million were received. And at the date of issuance of this report, this case is
in still in progress.

(9) A case has been filed on the dispute over the sales and purchase contracts between the
Company's subsidiary Konka Huanjia (plaintiff) and 38 companies (defendant) including Huanjia
Group Co., Ltd. and Dalian Jinshunda Material Recycling Co., Ltd., etc. The amount of the
subject matter involved in it is RMB890 million. Konka Huanjia has applied for the court to seal
up and freeze the defendant's corresponding property. As of the date of issuance of this report, no
effective judgment has been issued for this case.

(10) The amount of the subject matter involved in the dispute between the Company's subsidiary
Dongguan Konka (plaintiff) 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. and Huang Zhihao (defendant) over sales and
purchase contracts is RMB90 million. In December 2020, the Company filed a lawsuit to the
court. As of the date of issuance of this report, no effective judgment has been issued for this case.

(11) As the acceptor failed to pay the commercial bills held by the Company upon maturity, the
Company, as the plaintiff, filed a lawsuit to the court on the matured bills amounting to RMB78
million, requesting the court to order Hefei Huajun Trading Co., Ltd. and Wuhan Jialian
Agricultural Technology Development Co., Ltd. to pay the Company the bills and the interest for
default, and applied for property preservation. As at the date of issuance of this report, the Court
has ordered the defendant to pay Konka Group the bills and corresponding interest, and the case
is in execution.

(12) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Factoring (the plaintiff) and Tahoe Group Co., Ltd., Fuzhou Taijia Enterprise Co., Ltd.
and Xiamen Lianchuang Micro-electronics Co., Ltd. (the defendants) over the right of recourse
for bills is RMB50 million and the corresponding interest. On September 1, 2021, the
Intermediate People's Court of Xiamen Municipality, Fujian, ordered the defendants to pay the
plaintiff e-commercial acceptance bills of RMB50 million and the corresponding interest. As of
the date of issuance of this report, the case is in the execution stage.

(13) The amount of the subject matter involved in the dispute between the Company (plaintiff)
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. (defendant) over the right of recourse for bills is RMB50 million and the corresponding
interest. In September 2018, the Company filed a lawsuit with Shenzhen Intermediate People’s

                                                  264
Konka Group Co., Ltd.                                                         Interim Report 2022


Court, which has preserved the defendant’s corresponding property. The judgment of this case
has come into effect. The Court ordered China Energy Electric Fuel Co., Ltd. and other
defendants to pay the Company the bills of RMB50 million and the interest. As at the date of
issuance of this report, the case is in execution, and the Company has applied to the court for
adding shareholders of the person subject to enforcement as co-person subject to enforcement.

(14) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Makena Electronic (Hong Kong) (defendant) over the sales and
purchase contract is RMB5,440,200. On December 7, 2021, Anhui Konka filed an arbitration
with the Shenzhen Court of International Arbitration. As at the date of issuance of this report, no
valid judgment has been made for this case.

(15) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Shanghai Likai Logistics Co., Ltd. Shenzhen Branch and Shanghai
Likai Logistics Co., Ltd. (defendant) over freight forwarding contracts in maritime and open sea
waters is RMB38 million. On April 26, 2021, Anhui Konka applied to Shanghai Maritime Court
for compulsory execution. On June 7, 2021, the Court accepted the case and numbered it {2021)
H. 72 ZH. No. 205. On 14 October 2021, Shanghai Maritime Court issued an executive order and
ended this execution. As at the date of issuance of this report, the case is in the final stage of
execution.



XIII. Commitment

1. Capital Commitments

                   Item                       Ending balance              Beginning balance
Contract signed but hasn’t been
recognized in financial statements
-Commitment on construction and
purchase of long-lived assets
-Large amount contract                               1,477,088,701.23              954,751,938.62

-Foreign investment commitments
                   Total                             1,477,088,701.23              954,751,938.62

2. Other Commitments

As of 30 June 2022, there were no other significant commitments for the Company to disclose.

XIV. Events after Balance Sheet Date

1. No significant non-adjusted events

2. Sales returns

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Konka Group Co., Ltd.                                                          Interim Report 2022


No such cases in the Reporting Period.

3. There were no other significant events after balance sheet date for the Company.

XV. Other Significant Events

The Company has no other significant events.

XVI. Notes of Main Items in the Financial Statements of the Company as the Parent

1. Accounts Receivable

(1) Accounts Receivable Listed by Withdrawal Methods for Bad Debts

                                                 Ending balance
                    Carrying balance                   Bad debt provision
                                                                      With
                                                                      draw
Category
                                     Proport                            al       Carrying value
                   Amount                               Amount
                                     ion (%)                          propo
                                                                      rtion
                                                                       (%)
Accounts
receivable
of
expected
credit            961,378,586.17         14.96     659,442,459.30      68.59       301,936,126.87
losses
withdrawn
individuall
y
Accounts
receivable
of
expected
credit
losses
withdrawn
by
portfolio
Of which:
Aging             520,881,762.23          8.10     188,182,787.20      36.13       332,698,975.03
portfolio

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Konka Group Co., Ltd.                                                          Interim Report 2022


                                                 Ending balance
                     Carrying balance                  Bad debt provision
                                                                      With
                                                                      draw
Category
                                     Proport                            al       Carrying value
                    Amount                              Amount
                                     ion (%)                          propo
                                                                      rtion
                                                                       (%)
         Rel
ated party      4,945,431,882.58         76.94                                    4,945,431,882.58
group
Subtotal of
                5,466,313,644.81         85.04     188,182,787.20       3.44      5,278,130,857.61
portfolios
     Total      6,427,692,230.98        100.00     847,625,246.50      13.19      5,580,066,984.48



      (Continued)

                                                 Opening balance
                     Carrying balance                  Bad debt provision
                                                                      Withd
    Category                         Propor                           rawal
                                                                                 Carrying value
                    Amount              tion           Amount         propo
                                        (%)                           rtion
                                                                       (%)
Accounts
receivable
of
expected
credit              963,517,996.45      18.14      660,600,525.26      68.56       302,917,471.19
losses
withdrawn
individuall
y
Accounts
receivable
of
expected
credit

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Konka Group Co., Ltd.                                                              Interim Report 2022


                                                   Opening balance
                        Carrying balance                 Bad debt provision
                                                                          Withd
 Category                              Propor                             rawal
                                                                                     Carrying value
                        Amount             tion          Amount           propo
                                           (%)                            rtion
                                                                          (%)
losses
withdrawn
by
portfolio
Of which:
Aging               666,828,622.16         12.56     181,017,964.57       27.15        485,810,657.59
portfolio
         Rel
ated party        3,679,956,748.33         69.30                                      3,679,956,748.33
group
Subtotal of
                  4,346,785,370.49         81.86     181,017,964.57         4.16      4,165,767,405.92
portfolios
Total             5,310,303,366.94     100.00        841,618,489.83       15.85       4,468,684,877.11

(2) Provision for bad debts of accounts receivable provided individually

                                                         Ending balance
                                                                      Withdra
Name                                                Bad debt              wal         Withdrawal
                          Carrying balance
                                                    provision         proporti           reason
                                                                      on (%)
Shanghai       Huaxin
International                299,136,676.70        270,016,218.90          90.27 Debt default
Group Co., Ltd.
Hongtu         Sanbao
High-tech                                                                          Agreement
                             200,000,000.00         80,000,000.00          40.00
Technology       Co.,                                                              reorganization
Ltd.
Tewoo Group Co.,                                                                   Judicial
                             200,000,000.00        100,000,000.00          50.00
Ltd.                                                                               reorganization
Zhongfu Tiangong                                                                   Expected     to   be
                              71,689,096.65         46,662,912.82          65.09
Construction                                                                       difficult to recover

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Konka Group Co., Ltd.                                                            Interim Report 2022


                                                        Ending balance
                                                                    Withdra
Name                                               Bad debt              wal         Withdrawal
                          Carrying balance
                                                   provision        proporti               reason
                                                                     on (%)
Group Co., Ltd.                                                                  in full
CCCC              First
                                                                                 Expected       to    be
Harbor
                              55,438,105.00        48,915,975.00         88.24 difficult to recover
Engineering
                                                                                 in full
Company Ltd.
China          Energy                                                            Expected       to    be
Electric Fuel Co.,            50,000,000.00        42,500,000.00         85.00 difficult to recover
Ltd.                                                                             in full
                                                                                 Expected       to    be
Others                        85,114,707.82        71,347,352.58         83.82 difficult to recover
                                                                                 in full
         Total               961,378,586.17       659,442,459.30         68.59

1) Bad debt provision for accounts receivable made as per portfolio

       1 Among Groups, Withdrawal of Expected Credit Loss by Aging

                                                             Ending balance
Aging                                                           Bad debt             Withdrawal
                                     Carrying balance
                                                                provision          proportion (%)
Within 1 year                           312,348,662.67           6,371,912.64                        2.04
1 to 2 years                             19,685,880.67           1,972,525.26                       10.02
2 to 3 years                                 1,835,208.46          416,408.80                       22.69
3 to 4 years                             21,611,816.47          14,021,746.54                       64.88
Over 4 years                            165,400,193.96         165,400,193.96                   100.00
                 Total                  520,881,762.23         188,182,787.20                       36.13

         2 Among Groups, Withdrawal of Expected Credit Loss by Adopting Other Method

                                                            Ending balance
               Aging                                            Bad debt             Withdrawal
                                    Carrying balance
                                                                provision          proportion (%)
Related party group                    4,945,431,882.58
               Total                   4,945,431,882.58

(3) Accounts Receivable Listed by Aging Portfolio


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Konka Group Co., Ltd.                                                          Interim Report 2022


Aging                                                             Ending balance
Within 1 year                                                                     4,331,772,218.44
1 to 2 years                                                                       792,569,876.16
2 to 3 years                                                                       381,345,049.07
3 to 4 years                                                                       747,219,290.52
Over 4 years                                                                       174,785,796.79
                     Subtotal                                                     6,427,692,230.98
Less: bad debt provision                                                           847,625,246.50
                          Total                                                   5,580,066,984.48

(4) Information of Bad Debt Provision in the Reporting Period

                                                                 Changed amount
      Category                Beginning balance                                    Collected or
                                                         Withdrawn
                                                                                     reversed
Bad debt provision of
                                  841,618,489.83                6,006,756.67
accounts receivable
        Total                     841,618,489.83                6,006,756.67

     (Continued)

                                       Changed amount
     Category                                                             Ending balance
                            Write-off or verified    Other
Bad debt provision
of             accounts                                                            847,625,246.50
receivable
        Total                                                                      847,625,246.50

(5) No actual verified accounts receivable in the Reporting Period.

(6) Receivables with Top 5 Ending Balance Collected by Arrears Party

The total amount of receivables with top 5 ending balance collected by arrears party for the
Reporting Period was RMB4,947,822,271.69, accounting for 76.98% of the total ending balance
of accounts receivable. The total ending balance of bad debt provision correspondingly
withdrawn was RMB270,016,218.91.

(7) There Was No Account Receivable Terminated the Recognition owning to the Transfer of the
Financial Assets.

(8) There Was No Asset and Liability Formed due to the Transfer of Accounts Receivable and
Continued Involvement in the Reporting Period.

2. Other Receivables

                                                   270
Konka Group Co., Ltd.                                                            Interim Report 2022


               Item                        Ending balance                    Beginning balance
Interest receivable                                 2,907,863.11                        2,002,526.91
Dividends receivable                                 388,722,154.83                  383,943,256.80
Other receivables                                   9,859,342,231.28               10,539,120,447.82
               Total                               10,250,972,249.22               10,925,066,231.53

2.1 Interest Receivable

(1) Category of Interests Receivable

               Item                        Ending balance                    Beginning balance
Term deposits                                             2,907,863.11                  2,002,526.91
               Total                                      2,907,863.11                  2,002,526.91

2.2 Dividends Receivable

(1) Category of Dividends Receivable

                 Investee                     Ending balance                   Opening balance
Hong Kong Konka Limited                                   108,722,154.83             103,943,256.80
Suining Konka Industrial Park
                                                          280,000,000.00             280,000,000.00
Development Co., Ltd.
                  Total                                   388,722,154.83             383,943,256.80

2.3 Other Receivables

(1) Classified by Account Nature

                 Nature                   Ending carrying balance          Opening carrying balance
Intercourse         funds        among
                                                     10,906,646,965.40             11,464,671,000.88
subsidiaries
Energy-saving subsidies receivable                        141,549,150.00             141,549,150.00
Intercourse funds with other related
                                                           54,312,816.73               50,667,315.53
parties
Deposit and margin                                         11,983,388.91               10,533,532.11
Others                                                    143,193,401.14             253,002,153.59
                  Total                              11,257,685,722.18             11,920,423,152.11

(2) Withdrawal of Bad Debt Provision for Other Receivables

Bad       debt         Stage 1           Stage 2                 Stage 3               Total
provision




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Konka Group Co., Ltd.                                                          Interim Report 2022


                                    Expected loss
                   Expected                             Expected credit
                                   in the duration
                  credit loss of                       losses for the entire
                                       (credit
                  the next 12                            duration (with
                                   impairment not
                    months                             credit impairment)
                                     occurred)
Balance as at
1       January    2,036,471.61      54,584,345.62        1,324,681,887.06        1,381,302,704.29
2022
In          the
Reporting
Period,
Carrying
amount       of      -37,962.09          37,962.09
other
receivables
on 1 January
2022
- Transferred
to the Phase         -37,962.09          37,962.09
II
- Transferred
to the Phase
III
- Transferred
back to the
Phase II
- Transferred
back to the
Phase I
Withdrawal          -904,284.12        964,524.72            16,980,546.01           17,040,786.61
Recovery
Write-off
Verification
Other
changes
Balance on
30         June    1,094,225.40      55,586,832.43        1,341,662,433.07        1,398,343,490.90
2022

                                                 272
Konka Group Co., Ltd.                                                         Interim Report 2022


(3) Withdrawing bad debt provision for other receivables according to group

                                             Ending balance
                  Carrying amount               Bad debt provision
                                                                    With
Categor                                                             draw
                                   Propo
       y                                                             al        Carrying value
                  Amount           rtion            Amount
                                                                    prop
                                    (%)
                                                                    ortio
                                                                    n (%)
Other
receivab
les        of
expected
credit
                1,928,623,498.02    17.13      1,341,662,433.07     69.57         586,961,064.95
losses
withdra
wn
individu
ally
Other
receivab
les        of
bad debt
provisio
n
withdra
wn         by
credit
risk
characte
ristic
portfolio
:
Aging
                 139,585,436.26      1.24           51,785,550.23   37.10           87,799,886.03
portfolio
Low-
risk              18,460,535.94      0.16            4,895,507.60   26.52           13,565,028.34
portfolio

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Konka Group Co., Ltd.                                                             Interim Report 2022


                                                  Ending balance
                     Carrying amount                 Bad debt provision
                                                                         With
Categor                                                                  draw
                                        Propo
       y                                                                  al       Carrying value
                     Amount             rtion            Amount
                                                                         prop
                                         (%)
                                                                         ortio
                                                                         n (%)
Related
party           9,171,016,251.96         81.46                                       9,171,016,251.96
group
Subtotal
of
                9,329,062,224.16         82.87           56,681,057.83    0.61       9,272,381,166.33
portfolio
s
Total          11,257,685,722.18        100.00     1,398,343,490.90      12.42       9,859,342,231.28

       (Continued)

                                                 Beginning balance
                     Carrying balance                Bad debt provision
                                                                         Withd
Catego
                                    Propo                                 rawal
     ry                                                                             Carrying value
                     Amount             rtion            Amount          propo
                                        (%)                               rtion
                                                                          (%)
Other
receiva
bles of
expecte
d credit
                1,917,144,244.04        16.08       1,324,681,887.06      69.10       592,462,356.98
losses
withdra
wn
individu
ally
Other
receiva
bles of

                                                   274
Konka Group Co., Ltd.                                                        Interim Report 2022


                                             Beginning balance
                  Carrying balance               Bad debt provision
                                                                     Withd
Catego
                                   Propo                             rawal
     ry                                                                        Carrying value
                  Amount             rtion           Amount          propo
                                     (%)                             rtion
                                                                     (%)
bad
debt
provisio
n
withdra
wn        by
credit
risk
characte
ristic
portfoli
o:
     Agin
g
                 188,615,848.46       1.58           52,782,559.62   27.98        135,833,288.84
portfoli
o
     Low-
risk
                  17,318,036.76       0.15            3,838,257.61   22.16         13,479,779.15
portfoli
o
     Relat
ed party        9,797,345,022.85     82.19                                      9,797,345,022.85
group
Subtotal
of
               10,003,278,908.07     83.92           56,620,817.23    0.57      9,946,658,090.84
portfoli
os
Total          11,920,423,152.11   100.00       1,381,302,704.29     11.59    10,539,120,447.82

(4) Other Receivables Listed by Aging

                     Aging                                       Ending balance

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Konka Group Co., Ltd.                                                            Interim Report 2022


                     Aging                                        Ending balance
Within 1 year                                                                       5,107,628,848.08

1 to 2 years                                                                        4,077,800,371.98

2 to 3 years                                                                         325,840,422.22

3 to 4 years                                                                        1,387,777,872.27

4 to 5 years                                                                           68,404,107.69

Over 5 years                                                                         290,234,099.94
                    Subtotal                                                      11,257,685,722.18

Less: bad debt provision                                                            1,398,343,490.90

                     Total                                                          9,859,342,231.28

(5) Bad Debt Provision for Other Receivables

The amount of bad debt provision for the Reporting Period was RMB17,040,786.61, and other
receivables actually written off in this period were RMB0.00.

(6) Other Receivables Actually Written off for the Reporting Period

There were no other receivables actually written off for the Reporting Period.

(7) Other Receivables with Top 5 Ending Balances Collected by Arrears Party

The total amount of other receivables with top 5 ending balance collected by arrears party this
year was RMB7,721,891,966.19, accounting for 68.59% of the total ending balance of other
receivables. The total ending balance of bad debt provision correspondingly withdrawn was
RMB1,154,255,128.49.

(8) There were no other receivables derecognized due to the transfer of financial assets for the
Reporting Period.

(9) There were no assets or liabilities formed due to the transfer and the continued involvement of
other receivables for the Reporting Period.




                                               276
Konka Group Co., Ltd.                                        Interim Report 2022


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                 6,823,951,033.98         431,911,933.01         6,392,039,100.97     6,697,991,519.67      442,644,418.70    6,255,347,100.97
subsidiaries
Investment
to associates
                   2,771,232,922.34         238,255,149.48         2,532,977,772.86     2,618,520,670.18      240,725,547.51    2,377,795,122.67
and      joint
ventures
     Total         9,595,183,956.32         670,167,082.49         8,925,016,873.83     9,316,512,189.85      683,369,966.21    8,633,142,223.64

(2) Investment to Subsidiaries

                                                                                                                Provision for   Ending balance
       Investee         Beginning balance            Increase             Decrease        Ending balance      impairment this   of depreciation
                                                                                                                   period           reserve
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

                                                                            277
Konka Group Co., Ltd.                               Interim Report 2022



                                                                                                Provision for    Ending balance
     Investee           Beginning balance    Increase            Decrease   Ending balance     impairment this   of depreciation
                                                                                                   period           reserve
Dongguan Konka             274,783,988.91                                     274,783,988.91

Konka Europe                  3,637,470.00                                      3,637,470.00
Telecommunication
                           360,000,000.00                                     360,000,000.00
Technology
Mobile
                           100,000,000.00                                     100,000,000.00
Interconnection
Anhui Tongchuang           779,702,612.22                                     779,702,612.22

Kangjiatong                 29,349,800.00    1,400,000.00                      30,749,800.00
Pengrun
                            25,500,000.00                                      25,500,000.00
Technology
Beijing       Konka
                           200,000,000.00                                     200,000,000.00
Electronic
Konka Circuit              287,650,000.00                                     287,650,000.00

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
Konka Huanjia                                                                                                       91,800,000.00

Shanghai Konka              40,000,000.00                                      40,000,000.00

Jiangxi Konka              349,568,066.99                                     349,568,066.99                      340,111,933.01

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                                                                                                  Provision for    Ending balance
      Investee            Beginning balance    Increase            Decrease   Ending balance     impairment this   of depreciation
                                                                                                     period           reserve
Shenzhen Nianhua              30,000,000.00                                      30,000,000.00
Shenzhen
                             100,000,000.00                                     100,000,000.00
KONSEMI
Konka             Eco-
                                  50,000.00                                          50,000.00
Development
Suining         Konka
                             200,000,000.00                                     200,000,000.00
Industrial Park
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


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                                                                                                         Provision for    Ending balance
     Investee             Beginning balance    Increase             Decrease         Ending balance     impairment this   of depreciation
                                                                                                            period           reserve
Chongqing
Optoelectronic
                             933,333,333.33                                            933,333,333.33
Technology
Research Institute
Kowin        Memory
                              92,520,000.00                                             92,520,000.00
(Shenzhen)
Jiangkang
(Shanghai)                    90,000,000.00                                             90,000,000.00
Technology
Ningbo        Kanghr
                                     510.00                                                   510.00
Electrical Appliance
Konka       Intelligent
                              10,000,000.00                                             10,000,000.00
Manufacturing
Yibin Kangrun                 67,000,000.00                                             67,000,000.00

Konka Material                  9,205,452.93                                             9,205,452.93
Industrial and Trade
                              50,000,000.00                                             50,000,000.00
Technology
Konka Huazhong                30,000,000.00                                             30,000,000.00

Sichuan Chengrui                   8,000.00    19,992,000.00         20,000,000.00

Guizhou      Kanggui                           70,000,000.00                            70,000,000.00


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                                                                                                                Provision for    Ending balance
     Investee             Beginning balance            Increase            Decrease         Ending balance     impairment this   of depreciation
                                                                                                                      period        reserve
Material
Technology
Nantong Kanghai                                       15,300,000.00                            15,300,000.00
Jiangxi           Konka
                                                      50,000,000.00                            50,000,000.00
High-tech Park
Shangrao          Konka
Electronic
Technology
Innovation
Zhejiang          Konka
Electronic
Zhejiang          Konka
Technology
Industry
          Total                6,255,347,100.97      156,692,000.00         20,000,000.00   6,392,039,100.97                      431,911,933.01




(3) Investment to Joint Ventures and Associated Enterprises

                    Investee                      Closing Balance of                              Increase/decrease
                                                     Last Period
                                                                             281
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                                                                                                                        Adjustment of
                                                                                                Gains and losses
                                                                Additional   Investment                                     other
                                                                                              recognized under the
                                                                investment    reduced                                   comprehensive
                                                                                                 equity method
                                                                                                                           income
Anhui Kaikai Shijie E-commerce Co., Ltd.        17,400,738.44
Kunshan        Kangsheng         Investment
                                               222,683,160.16                                           -4,747,257.35
Development Co., Ltd.
Chutian Dragon Co., Ltd.                       647,490,626.94                82,158,766.96             13,641,260.41
Helongjiang Longkang Zhijia Technology
                                                 1,157,647.82                  1,157,647.82
Co., Ltd.
Shaanxi Silk Road Cloud Intelligent Tech
                                                14,113,227.58                                             183,461.77
Co., Ltd.
Shenzhen      Kanghongxing       Intelligent
Technology Co., Ltd.
Shenzhen Zhongbin Konka Technology
Co., Ltd.
Shenzhen     Kangjia    Jiapin   Intelligent
                                                 3,921,788.17                                             725,889.93
Electrical Apparatus Technology Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd.         60,453,041.58                                           1,324,755.44
Shenzhen Yaode Technology Co., Ltd.
Wuhan        Tianyuan       Environmental
                                               325,645,840.91                                          11,179,621.33
Protection Co., Ltd.
Shenzhen KONKA E-display Co., Ltd.              13,097,210.11                                           -1,564,990.77


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                                                                                                 Increase/decrease
                                                                                                                                   Adjustment of
                                                Closing Balance of                                       Gains and losses
                Investee                           Last Period       Additional       Investment                                       other
                                                                                                       recognized under the
                                                                     investment        reduced                                     comprehensive
                                                                                                          equity method
                                                                                                                                      income
Chuzhou Konka         Technology    Industry
                                                      5,899,324.39                                               -1,305,129.50
Development Co., Ltd.
Chuzhou     Kangjin     Health     Industrial
                                                     15,251,484.01    24,500,000.00
Development Co., Ltd.
Nantong Kangjian Technology Industrial
Park Operations and Management Co.,                  14,610,460.04                                                   -588,275.99
Ltd.
Shenzhen Kangyue Enterprise Co., Ltd.                 3,102,893.60                                                    -70,623.90
Dongguan Guankang Yuhong Investment
                                                     17,762,197.93                                              -12,145,407.83
Co., Ltd.
Chongqing Yuanlv Benpao Real Estate
                                                       -261,753.11                                                   261,753.11
Co., Ltd.
Chuzhou     Kangxin      Health     Industry
                                                     12,801,830.75                                               -1,370,767.86
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd.                 36,574,609.73
Shenzhen Kangpeng Digital Technology
                                                      5,702,518.20                                               -1,164,839.41
Co., Ltd.
Yantai Kangyun Industrial Development                 8,536,245.03                                               -2,011,566.36


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                                                                                                     Increase/decrease
                                                                                                                                         Adjustment of
                                              Closing Balance of                                             Gains and losses
                   Investee                      Last Period          Additional         Investment                                          other
                                                                                                           recognized under the
                                                                      investment           reduced                                       comprehensive
                                                                                                              equity method
                                                                                                                                            income
Co., Ltd.
Shandong Econ Technology Co., Ltd.                823,028,634.77                                                     59,671,172.50
Dongguan     Kangjia        New   Materials
                                                    3,919,896.55                                                         -451,280.15
Technology Co., Ltd.
Shenzhen E2info Network Technology
                                                  124,903,499.07                                                     17,622,654.08
Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd.                                12,250,023.10                                  -2,702,345.77
                    Total                       2,377,795,122.67      36,750,023.10       83,316,414.78              76,488,083.68

     (Continued)

                                                                     Increase/decrease                         Ending balance
                                                                     Cash bonus or
                                                                                      Withdrawal of                                    Ending balance of
                   Investee                       Other equity          profits
                                                                                       impairment Others       (Carrying value) depreciation reserve
                                                    changes          announced to
                                                                                         provision
                                                                         issue
Anhui Kaikai Shijie E-commerce Co., Ltd.                                                                            17,400,738.44
Kunshan        Kangsheng          Investment
                                                                                                                  217,935,902.81
Development Co., Ltd.
Chutian Dragon Co., Ltd.                             -2,854,608.30     4,410,993.60                               571,707,518.49
                                                                           284
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                                                                  Increase/decrease                      Ending balance
                                                                  Cash bonus or
                                                                                    Withdrawal of                            Ending balance of
                 Investee                         Other equity        profits
                                                                                     impairment Others   (Carrying value) depreciation reserve
                                                    changes       announced to
                                                                                      provision
                                                                       issue
Helongjiang Longkang Zhijia Technology
Co., Ltd.
Shaanxi Silk Road Cloud Intelligent Tech
                                                                                                             14,296,689.35
Co., Ltd.
Shenzhen      Kanghongxing          Intelligent
                                                                                                                                   5,158,909.06
Technology Co., Ltd.
Shenzhen Zhongbin Konka Technology Co.,
Ltd.
Shenzhen     Kangjia     Jiapin     Intelligent
                                                                                                              4,647,678.10
Electrical Apparatus Technology Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd.                                                                      61,777,797.02        18,536,771.07
Shenzhen Yaode Technology Co., Ltd.                                                                                              214,559,469.35
Wuhan Tianyuan Environmental Protection
                                                                     2,770,200.00                           334,055,262.24
Co., Ltd.
Shenzhen KONKA E-display Co., Ltd.                                                                           11,532,219.34
Chuzhou     Konka      Technology     Industry
                                                                                                              4,594,194.89
Development Co., Ltd.
Chuzhou     Kangjin      Health     Industrial                                                               39,751,484.01


                                                                         285
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                                                               Increase/decrease                    Ending balance
                                                               Cash bonus or
                                                                               Withdrawal of                            Ending balance of
                 Investee                    Other equity         profits
                                                                                impairment Others   (Carrying value) depreciation reserve
                                               changes         announced to
                                                                                   provision
                                                                   issue
Development Co., Ltd.
Nantong Kangjian Technology Industrial
                                                                                                        14,022,184.05
Park Operations and Management Co., Ltd.
Shenzhen Kangyue Enterprise Co., Ltd.                                                                    3,032,269.70
Dongguan Guankang Yuhong Investment
                                                                                                         5,616,790.10
Co., Ltd.
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Chuzhou     Kangxin     Health    Industry
                                                                                                        11,431,062.89
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd.                                                                    36,574,609.73
Shenzhen Kangpeng Digital Technology
                                                                                                         4,537,678.79
Co., Ltd.
Yantai Kangyun Industrial Development
                                                                                                         6,524,678.67
Co., Ltd.
Shandong Econ Technology Co., Ltd.            135,296,760.09                                         1,017,996,567.36
Dongguan     Kangjia     New     Materials
                                                                                                         3,468,616.40
Technology Co., Ltd..


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                                                            Increase/decrease                     Ending balance
                                                            Cash bonus or
                                                                             Withdrawal of                            Ending balance of
                 Investee                 Other equity         profits
                                                                              impairment Others   (Carrying value) depreciation reserve
                                            changes         announced to
                                                                                provision
                                                                issue
Shenzhen E2info Network Technology Co.,
                                                                                                     142,526,153.15
Ltd.
Sichuan Chengrui Real Estate Co., Ltd.                                                                 9,547,677.33
                  Total                    132,442,151.79     7,181,193.60                         2,532,977,772.86       238,255,149.48




                                                                  287
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4. Operating Revenue and Cost of Sales

(1) Operating Revenue and Cost of Sales

                       Reporting Period                          Same Period of last year
 Item
                Revenue                   Cost                Revenue                  Cost
Main
operati        795,988,114.95          904,792,276.47      1,049,267,610.79       1,005,212,983.03
ons
Other
operati        141,186,691.51           50,784,505.04        152,113,795.91          74,048,575.31
ons
Total          937,174,806.46          955,576,781.51      1,201,381,406.70       1,079,261,558.34

5. Investment Income

                                                                                  Same Period of
                      Item                              Reporting Period
                                                                                     last year
Long-term        equity     investment      income
                                                              76,488,083.68           6,396,453.37
accounted by equity method
Investment income from disposal of long-term
                                                             152,614,987.18         167,692,365.06
equity investment
Investment income from disposal of financial
                                                                                     21,845,500.00
assets at fair value through profit or loss
Interest income from holding of debt obligation
                                                               2,010,000.00             860,000.00
investments
                        Total                                231,113,070.86         196,794,318.43

XVII. Approval of Financial Statements

The financial statement was approved on 23 August 2022 by the Board of Directors.




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XVIII. Supplementary Materials

1. Items and Amounts of Non-recurring Profit or Loss

                                Item                                Amount                Note
      Gains/losses from the disposal of non-current assets          657,751,392.73
      Tax rebates, reductions or exemptions due to approval
      beyond authority or the lack of official approval
      documents
      Government grants recognized in the current period,
      except for those acquired in the ordinary course of
                                                                    335,987,367.04
      business or granted at certain quotas or amounts
      according to the government’s unified standards
      Dispossession surcharge to non-financial institutions
      included in the current profit and loss
      Profits arising from business combination when the
      combined cost is less than the recognized fair value of
      net assets of the mergered company
      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
      Gains and losses arising from contingencies unrelated
      to the normal operation of the company's business
      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       32,966,971.77
      financial assets and liabilities, and investment in other
      obligatory rights, other than valid hedging related to
      the Company’s common businesses
      Reversal    of    provision   for   impairment    test   of
      receivables and contract assets impairment
      Gain/loss on entrustment loans                                 54,416,927.25



                                                        289
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                                 Item                                     Amount                Note
      Gain/loss on change in fair value of investment
      property of which the follow-up 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
      Custodian fees earned from entrusted operation
      Other non-operating income and expense other than the
                                                                          26,896,814.20
      above
      Other profit and loss items in line with the definition of
      non-recurring gains and losses
      Subtotal                                                          1,108,019,472.99

      Less: Income tax effects                                           135,264,660.61

           Minority shareholders' equity impact (after tax)               57,580,191.84

                                 Total                                   915,174,620.54

     (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 it.

      Item                   Amount                                        Reason
                                              Government subsidies which are closely related to the
      Software tax                            normal business of the company and which are in
                                 7,949,955.87
      refund                                  accordance with national policies and certain standard
                                              quota or quantitative amount
          Total                  7,949,955.87

2. Return on Equity and Earnings Per Share

                                                 Weighted average               EPS (Yuan/share)
      Profit in Reporting Period
                                                      ROE (%)               EPS-basic      EPS-diluted
      Net profit attributable to ordinary
      shareholders of the Company as the                        1.87%            0.0718             0.0718
      Parent
      Net profit attributable to ordinary
      shareholders of the Company as the                      -8.03%             -0.3083           -0.3083
      Parent before exceptional gains and


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                                             Weighted average            EPS (Yuan/share)
      Profit in Reporting Period
                                                 ROE (%)            EPS-basic        EPS-diluted
      losses



     3. 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

     (2)Net Profit and Equity Differences under CAS and Foreign Accounting Standards

     □ Applicable √ Not applicable


                                                                                The Board of Directors
                                                                                Konka Group Co., Ltd.
                                                                                      24 August 2022




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