Konka Group Co., Ltd.
FINANCIAL REPORT
For the Six Months Ended 30 June 2022
（Un-audited）
Contents
Auditor’s Report
Balance Shhet
Income Statement
Cash Flow Statement
Statement of Changes in Owners' Equity
Notes to Accounting Statements
Legal representative: Zhou Bin
Head of the accounting work:Li Chunlei
Head of the accounting department: Guo Zhihua
English Translation for Reference Only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
1
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
2
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
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
3
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
Less: Treasury stock
Other comprehensive income -17,046,757.46 -20,336,087.87
4
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
5
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:
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
6
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
7
Interest expense
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 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)
8
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
3,328,259.75 -2,069,129.84
currency-denominated financial statements
6.2.7 Other
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
9
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
10
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
5.2.4 Credit impairment allowance for investments in other debt
obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of foreign
-303,868.87
currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income -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
11
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
Net cash generated from/used in investing activities 114,321,239.48 -1,785,387,038.28
12
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
13
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
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
14
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
132,442,151.79 132,442,151.79 109,449,655.93 241,891,807.72
by 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
15
Reporting Period 5,408.00
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
4,030,393.82 4,030,393.82 20,522,828.66 24,553,222.48
by 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
16
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
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
17
H1 2021
Unit: RMB
H1 2021
Other equity instruments Less: Other
Item Specific
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Retained earnings Other Total owners’ equity
Other reserve
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
18
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
19
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
20
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
55 Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd. Shenzhen Chuangzhi Electrical
21
No. Corporate name Abbreviation
Appliances
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
22
No. Corporate name Abbreviation
81 Jiali International (Hong Kong) Limited Jiali International
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
23
No. Corporate name Abbreviation
106 Ruichang Kangrui Real Estate Co., Ltd. Ruichang Kangrui Real Estate
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 (Limited Kanghong 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 f or 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
24
as the accounting policies and estimations stipulated in the Note IV “Significant Accounting
Policies and Estimations”.
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 Esti mations
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
25
cost of business combination realized step by step through multiple transactions is the sum of every
single transaction’s cost). The balance that the combined cost greater than the fair value share of the
identifiable net assets of the purchased party obtained in the combination shall be recognized as
goodwill; When the merger cost is less than the fair value share of the identifiable net assets of the
acquiree acquired in the merger, the fair value of all identifiable assets, liabilities and contingent
liabilities acquired in the merger, and non-cash assets of the merger consideration or equity
securities issued, etc. shall be reviewed first. After review, if the merger cost is still less than the fair
value share of the identifiable net assets of the acquiree acquired in the merger, the difference shall
be included in the non-operating income of the merger period.
6. Methods for Preparing Consolidated Financial Statements
The scope of consolidation includes 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
26
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 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
27
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.
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
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capitalization, the conversion difference was directly included in the current profits and losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot exchange
rate on balance sheet date; except for “undistributed profit”, owner’s equity items were converted at
the sport exchange rate at the time of business occurrence; income and expenditure items in income
statement were converted at the average exchange rate for the period (monthly average exchange
rate) of the transaction occurrence date. The conversion difference of foreign currency statements
arising from the aforementioned conversion was presented in other comprehensive income item.
The foreign currency cash flow was converted at the average exchange rate for the period (monthly
average exchange rate) of the cash flow occurrence date. The amount of exchange rate change
influence on cash was independently presented in cash flow statement.
10. Financial Assets and Financial Liabilities
The 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
29
the initial recognized amount. Except for those designated as hedged items, as for these financial
assets, except for gains or losses on credit impairment, exchange gain and loss and interest of
financial assets measured at actual interest rate, other gains or losses generated shall be recorded
into other comprehensive income. When derecognized, the accumulated gains and losses originally
recorded into other comprehensive income shall be transferred out into the current profit or loss.
The 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
30
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the overall transfer of financial assets fulfills the requirements for derecognition, the difference
between the book value of the transferred financial assets and the sum of the consideration received
due to the transfer and the corresponding derecognition part of the accumulated amount of fair
value changes originally directly included in other comprehensive income (the contract terms
involving the transferred financial assets stipulate that the cash flow generated on a specific date is
only the payment of the principal and interest based on the unpaid principal amount) shall be
included in the current profits and losses.
If the partial transfer of financial assets satisfies the conditions for termination confirmation, the
entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values, and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally included
in other comprehensive income that should be apportioned to the derecognition part And the
payment of interest based on the outstanding principal amount), and the difference between the
total book value of the aforesaid financial assets allocated is included in the current profit and loss.
(2) Financial liabilities
1) Classification, recognition and measurement of financial liabilities
The 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.
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2) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being terminated,
derecognition of such financial liabilities (or partial financial liabilities) is conducted by the 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 amount
32
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 based on the
33
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.
34
(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
Bank Acceptance The Accepter shall be the bank with high credit level and low 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:
35
Item Basis
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
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 risk
Low Risk Combination (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
36
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
Combination credit risk characteristics
Regarding the long-term receivables related to the PPP Project as the credit
Franchise Combination
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.
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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 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
38
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
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
39
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
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
40
held prior to the purchase date is an investment for other equity instruments, the changes in fair
value of the equity investment accumulated in other comprehensive income before the purchase
date shall be transferred to the retained earnings.
Except for the long-term equity investments acquired through business combination hereinabove,
long-term equity investments acquired by paying cash are recorded as investment cost based on the
actual purchase price paid; long-term equity investments acquired by issuing equity securities are
recorded as investment cost based on the fair value of the equity securities issued; long-term equity
investments invested by investors are recorded as investment cost based on the value agreed in the
investment contract or agreement.
The 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
41
recognized after adjustment.
For disposal of long-term equity investment, the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment
accounted by equity method, other comprehensive income accounted by the original equity method
shall be accounted on the same basis as the investee's direct disposal of relevant assets or liabilities
when the equity method is terminated, and the owner's equity shall be recognized due to other
changes in owner's equity of the investee except net profit and loss, other comprehensive income
and profit distribution When the equity method is terminated, all of them shall be transferred into
the current investment income.
In case of loss of joint control or significant influence on the investee due to the disposal of part of
equity investment, the remaining equity after disposal shall be accounted according to the relevant
provisions of the recognition and measurement standards of financial instruments, and the
difference between the fair value and the book value of the remaining equity on the date of loss of
joint control or significant influence shall be included in the current profits and losses. When the
equity method is terminated, the other comprehensive income of the original equity investment
recognized as a result of its accounting with the equity method shall be handled on the same basis as
the investee's direct disposal of the relevant assets or liabilities and carried forward in proportion.
The owner's equity recognized as a result of the changes in the owner's equity of the investee other
than net profit and loss, other comprehensive income and profit distribution shall be carried
forward in proportion Transfer to current investment income.
If the control over the investee is lost due to the disposal of part of the long-term equity investment,
and the residual equity after disposal can jointly control or exert significant influence on the
investee, it shall be accounted according to the equity method, and the difference between the book
value of the disposal equity and the disposal consideration shall be included in the investment
income, and the residual equity shall be regarded as adjusted by the equity method when it is
obtained If the residual equity cannot exercise joint control or exert significant influence on the
investee, the accounting treatment shall be carried out according to the relevant provisions of the
recognition and measurement standards of financial instruments. The difference between the book
value of the disposal equity and the disposal consideration shall be included in the investment
income, and the difference between the fair value and the book value of the residual equity on the
day of losing control shall be included in the current profits and losses.
If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction, accounting treatment shall be carried out for each transaction separately. If it is
a "package deal", each transaction will be treated as a transaction of disposal of subsidiaries and
loss of control. However, before the loss of control, the difference between the disposal price of
each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income, and when the control is lost, it
will be transferred to the current account of loss of control Period profit and loss
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21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the 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 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
43
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.
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.
44
24. Borrowing Costs
For incurred borrowing costs, which can be directly attributed to fixed assets, investment real estate
and inventory that need more than one year of purchasing, construction or production activities to
reach the preset usable or sellable status, shall be capitalized when the asset expenditure has
occurred, the borrowing costs have occurred, and the purchasing, construction or production
activities necessary for the asset to reach the preset usable or sellable status have begun; When the
acquisition, construction or production of assets that meet the capitalization conditions reach the
intended usable or sellable status, capitalization is stopped, and the borrowing costs incurred
thereafter are included in the profits and losses of the current period. If there is an abnormal
interruption in the acquisition, construction or production of assets that meet the capitalization
conditions and the interruption lasts for more than 3 consecutive months, the capitalization of
borrowing costs will be suspended until the acquisition, construction or production of assets starts
again.
The to-be-capitalized amount of interests shall be determined in light of the actual interests incurred
of the specially borrowed loan at the present period minus the income of interests earned on the
unused borrowing loans as a deposit in the bank or as a temporary investment; the enterprise shall
calculate and determine the to-be-capitalized amount on the general borrowing by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the
general borrowing by the capitalization rate of the general borrowing used. The capitalization rate
shall be calculated and determined in light of the weighted average interest rate of the general
borrowing.
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.
45
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 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
46
Expenditures in the development stage are capitalized when the following conditions are met.
① It is feasible technically to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally;
④ It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources;
⑤ The development expenditures of the intangible assets can be reliably measured.
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
47
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.
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
48
included in current profits and losses when determining the costs of demission welfare and
recombination. However, demission welfare not fully paid within 12 months after annual Reporting
Period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above
dismiss ion welfare. The 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 term at a fixed periodic
49
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.
(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
50
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
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
51
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
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
52
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 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.
53
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.
54
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 a
55
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
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
56
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 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
57
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
(1) Changes of accounting policies
No such cases in the Reporting Period.
58
(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
maintenance and Kangrun, Yibin Kangrun Medical, Yibin
paid Kangrun Environmental Protection. Paid at
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
International Trading, Jiali International, 16.5%
Kangjietong, Jiaxin Technology, Jiaxin
59
Name of entity Income tax rate
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
60
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
61
period-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
62
Item Amount of recognition Amount of not terminated
termination at the recognition at the period-end
period-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
Withd
Category
rawal
Proportio Carrying value
Amount Amount propo
n (%)
rtion
(%)
Provision for bad
debts provided
individually
Bad debt provision
939,489,453.78 100.00 4,647,349.10 0.49 934,842,104.68
made as per portfolio
Of which: Bank
711,678,224.25 75.75 711,678,224.25
acceptance bill
Commercial
227,811,229.53 24.25 4,647,349.10 2.04 223,163,880.43
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
63
Withd
rawal
Proportio
Amount Amount propo
n (%)
rtion
(%)
Provision for bad
debts provided
individually
Bad debt provision
1,789,175,291.65 100.00 11,697,810.37 0.65 1,777,477,481.28
made as per portfolio
Of which: Bank
1,215,753,215.01 67.95 1,215,753,215.01
acceptance bill
Commercial
573,422,076.64 32.05 11,697,810.37 2.04 561,724,266.27
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 proportion
Carrying amount Bad debt provision
(%)
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
64
(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
Withd
Category rawal
Proport Carrying value
Amount Amount propo
ion (%)
rtion
(%)
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: aging
3,186,183,833.65 66.88 350,449,169.82 11.00 2,835,734,663.83
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)
Category Beginning balance
65
Carrying amount Bad debt provision
Withd
rawal
Proport Carrying value
Amount Amount propor
ion (%)
tion
(%)
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: aging
3,148,039,065.69 66.18 296,880,274.15 9.43 2,851,158,791.54
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 awal Withdrawal
Carrying amount Bad debt provision
proport reason
ion (%)
Shanghai Huaxin 299,136,676.70 270,016,218.90 90.27 Debt default
66
Ending balance
Withdr
Name awal Withdrawal
Carrying amount Bad debt provision
proport reason
ion (%)
International 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
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
H-BUSTER DO 18,458,464.59 18,458,464.59 100.00 The counterparty
67
Ending balance
Withdr
Name awal Withdrawal
Carrying amount Bad debt provision
proport reason
ion (%)
BRASIL is bankrupt and is
INDUSTRIA expected to be
difficult to
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
68
Aging Ending balance
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
Changed amount
Category Beginning balance
Withdrawal Collected or 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 Ending balance
Decrease for other
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
Verification Reason for because of
Name of entity Nature procedures
Amount verification related-part
performed
y
transactions
69
Whether
occurred
Verification
Verification Reason for because of
Name of entity Nature procedures
Amount verification related-part
performed
y
transactions
Approved by
Payme
Shantan Innovations Pvt. Expected to be the Board of
nt for 2,825,921.20 No
LTD unrecoverable Directors of
goods
subsidiary
Approved by
Payme
ASANZO GROUP JOINT Expected to be the Board of
nt for 6,292,153.94 No
STOCK COMPANY unrecoverable Directors of
goods
subsidiary
Approved by
Payme
ASANZO MEDIA AND Expected to be the Board of
nt for 2,036,473.41 No
ENTERTAINMENT JOIN unrecoverable Directors of
goods
subsidiary
Approved by
Payme
A SANZO VIET NAM Expected to be the Board of
nt 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
70
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
Ending balance Beginning balance
Item 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
71
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
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 consolidation not 175,020,491.02 173,487,141.27
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 losses
Bad debt Expected credit
the duration for the entire Total
provision loss of the next 12
(credit impairment duration (with credit
months
not 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 to
-4,196,042.85 4,196,042.85
the Phase II
——Transferred to
72
Stage 1 Stage 2 Stage 3
Expected loss in Expected credit losses
Bad debt Expected credit
the duration for the entire Total
provision loss of the next 12
(credit impairment duration (with credit
months
not occurred) impairment)
the Phase III
——Transferred
back to the Phase II
——Transferred
back to the Phase I
Provision made in
1,474,096.03 13,879,527.05 28,006,091.69 43,359,714.77
the current period
Amount 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
Category
Carrying amount Bad debt provision Carrying value
73
Withdr
Proport awal
Amount Amount
ion (%) proport
ion
Other receivables
with significant
individual amount
and make
1,458,878,177.84 45.75 1,165,496,760.32 79.89 293,381,417.52
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 group 259,741,170.94 8.15 15,588,623.85 6.00 244,152,547.09
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
Category Withdr
Proport awal Carrying value
Amount Amount
ion (%) proport
ion
Other receivables
with significant
individual amount 1,458,258,132.07 45.97 1,137,490,668.63 78.00 320,767,463.44
and make
independent
74
Beginning balance
Carrying amount Bad debt provision
Category Withdr
Proport awal Carrying value
Amount Amount
ion (%) proport
ion
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 group 219,006,768.03 6.90 10,682,650.78 4.88 208,324,117.25
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
(5) Bad Debt Provision for Other Receivables
75
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 reserves/impairment
Carrying balance 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
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
76
Ending balance
Inventory falling price
Item reserves/impairment
Carrying balance Carrying value
provision of contract
performance costs
Contract performance costs 254,159.33 254,159.33
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 costs 254,159.33 254,159.33
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
77
(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
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
78
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 refund
638,536,197.81 649,198,781.95
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
(Continued)
Beginning balance
Item Carrying Bad debt
Carrying value
amount provision
Finance leasing amount 10,960,622.92 10,960,622.92
79
Beginning balance
Item Carrying Bad debt
Carrying value
amount provision
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
80
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.
81
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
Puchuang Jiakang
1,836,583.36 2,037,585.61
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.
82
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
Anhui Kaikai Shijie
418,721,305.96
E-commerce Co., Ltd.
Kunshan Kangsheng
Investment Development Co., 317,101,869.51 -4,747,257.35
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.
83
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 Yaode Technology
Co., Ltd.
Wuhan Tianyuan
Environmental Protection 325,645,840.91 11,179,621.33
Co., Ltd.
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 185,277,588.25 -1,370,767.86
84
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
Industry Development Co.,
Ltd.
Dongguan Guankang Yuhong
539,103,920.30 -12,145,407.83
Investment Co., Ltd.
Shenzhen Morsemi
Semiconductor Technology 2,395,748.73 -2,395,748.73
Co., Ltd.
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.
85
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
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.
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.
86
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
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
Technology Innovation 907,025.65 51,821.26
Development Co., Ltd.
Shandong Kangfei Intelligent
Electrical Appliances Co., 1,478,689.46 -1,113,706.55
Ltd.
Henan Kangfei Intelligent 1,832,647.54 -163,129.50
87
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
Electrical Appliances Co.,
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
Appliances Co., Ltd.
Heifei KONSEMI Storage
204,000,000.00 -8,004,201.68
Technology Co., Ltd.
88
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
Sichuan Chengrui Real Estate
43,120,000.00
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 Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
Kangkong Ventures
Development (Shenzhen) Co., 4,772,596.41
Ltd.
89
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
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.
90
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
Shenzhen Jielunte Technology
93,935,437.96
Co., Ltd.
Panxu Intelligence Co., Ltd. 52,680,945.10
Orient Excellent (Zhuhai) Asset
8,465,947.67
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
418,721,305.96
E-commerce Co., Ltd.
Kunshan Kangsheng 312,354,612.16
Investment Development Co.,
91
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
Ltd.
Chutian Dragon Co., Ltd. 4,410,993.60 571,707,518.48
Helongjiang Longkang Zhijia
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 2,770,200.00 334,055,262.24
Environmental Protection Co.,
92
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
Ltd.
Chuzhou Konka Technology
48,353,267.52
Industry Development Co., Ltd.
Chuzhou Kangjin Health
Industrial Development Co., 142,622,798.37
Ltd.
Nantong Kangjian Technology
Industrial Park Operations and 115,706,532.95
Management Co., Ltd.
Chuzhou Kangxin Health
183,906,820.39
Industry Development Co., Ltd.
Dongguan Guankang Yuhong
526,958,512.47
Investment Co., Ltd.
Shenzhen Morsemi
Semiconductor Technology
Co., Ltd.
93
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
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
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 Co.,
81,365,529.85
Ltd.
Chongqing Yuanlv Benpao 27,915,640.18
94
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
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.
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.
95
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
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.
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.
96
Increase/decrease
Cash bonus or Ending balance of
Withdrawal
Investee Other equity profits Ending balance impairment
of impairment Others
changes announced to provision
provision
issue
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
14. Investment in Other Equity Instruments
(1) Investment in Other Equity Instruments
Item Ending balance Opening balance
Shenzhen Tianyilian Science & Technology Co., Ltd.
97
Item Ending balance Opening balance
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
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
98
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 & Technology 200,000.00 Long-term holding based
99
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
Co., Ltd. on strategic purpose
Shenzhen Digital TV National Long-term holding based
1,273,594.84
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
100
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
101
Item Houses, buildings and lands Total
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
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
102
Item Houses, buildings and lands Total
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
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
103
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
104
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
(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
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
105
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
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
(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
106
107
(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 Being
33,584,624.73 1,511,308.11 32,073,316.62
plants on the handled
second and
108
Imp
airm
Original Accumulated Net carrying
Item ent Reason
carrying value depreciation value
prov
ision
third floors
for printed
boards
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 Boluo
10,232,197.90 Finance lease mortgage
Konka Precision
Smart machinery equipment 39,453,997.39 Mortgage loan
109
Item Ending carrying value Reason for restriction
and other equipment of Jiangsu
Konka
Total 1,198,081,326.15
18. Construction in progress
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
110
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
111
Ending balance Opening balance
Item Impairment Impairment
Carrying balance Carrying value Carrying balance Carrying value
provision provision
project of Chongqing
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 Ending balance
Other decrease
long-term assets
Infrastructure Project of Chongqing
Konka Semiconductor Optoelectronics
319,259,613.46 54,472,440.46 373,732,053.92
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
112
Decrease in this period
Name of item Opening balance Increase in this period Transferred to Ending balance
Other decrease
long-term assets
Crystalization Kiln
Dongguan Konka New Industrial Park 163,155,903.72 110,508,627.67 273,664,531.39
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 7.16 52.20 52.20 Self-owned fund
113
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
Chongqing Konka
Semiconductor
Optoelectronics
Research Institute (Part
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
Self-owned fund
High-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 Industrial 7.04 47.82 47.82 Self-owned fund
Park Workshops
R&D equipment
7.08 87.55 87.55 Self-owned fund
construction project of
114
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
Chongqing
Optoelectronic
Technology Research
Institute
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
115
19. Right-of-use assets
Houses and Electronic Transportation
Item Total
buildings equipment 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
116
Houses and Electronic Transportation
Item Total
buildings equipment equipment
1. Opening balance
2. Increased
amount this period
(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 carrying
70,663,020.19 279,653.10 267,742.08 71,210,415.37
value
117
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
118
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
(4) Increase
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
119
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
balance
II.
Accumulated
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
120
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
(2) Decrease
for loss of
12,916,666.68 73,930.67 12,990,597.35 12,990,597.35
controlling
right
(3) Decrease
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
121
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
(1)
Withdrawal
(2) Business
Combination
Increase
3. Decreased
amount of the
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
122
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
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
123
(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 Konka 191,936,448.67 Mortgage loan
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
124
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-developm
3,234,494.07 3,618,937.32 6,853,431.39
ent 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
125
(2) Provisions for Goodwill Impairment
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
Amortization Other decreased
Item Beginning balance Increased Ending balance
amount amount
Renovat
ion 236,571,769.59 30,482,087.54 18,423,669.96 799,399.90 247,830,787.27
costs
Shoppe
20,710,094.41 9,309,544.49 10,669,985.12 151,251.17 19,198,402.61
expense
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
Ending balance Beginning balance
Deferred income Deferred income tax
Item Deductible temporary Deductible 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
126
Ending balance Beginning balance
Deferred income Deferred income tax
Item Deductible temporary Deductible temporary
tax liabilities liabilities
difference difference
assets assets
losses
Assets
impairment 1,533,384,176.11 348,864,883.98 1,495,008,640.79 341,517,549.45
provision
Deferred Income 51,456,483.86 12,807,870.97 54,518,127.50 13,573,281.87
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 income Deferred income
Item Taxable temporary Taxable temporary
tax liabilities tax liabilities
difference difference
Liability Liability
Estimated added value
of assets not under the 206,301,023.34 43,885,643.01 225,287,542.61 46,262,753.72
same control
Prepaid interest 68,993,424.86 17,248,356.21 51,003,370.16 12,750,842.54
Accelerated
depreciation of fixed 3,664,731.64 765,257.91 6,990,324.63 1,596,656.16
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
Deductible temporary 2,020,657,733.61 2,024,354,413.51
127
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
128
Opening balance
Item Impairment
Carrying balance Carrying value
provision
Prepayment for
construction,
63,573,129.62 63,573,129.62
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.
129
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, 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., for
130
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-employ
1,203,348.63 56,054,347.94 56,740,989.17 516,707.40
ment
131
Beginning
Item Increased Decreased Ending balance
balance
benefit-defi
ned
contribution
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
Item Beginning balance Increased Decreased Ending 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-rela
ted 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
6,703,757.33 5,968,203.83 9,554,898.63 3,117,062.53
budget and
132
Item Beginning balance Increased Decreased Ending balance
employee
education budget
Short-term
absence with
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
133
Item Ending balance Beginning balance
Others 487,336.76 571,505.90
Total 275,168,869.12 295,825,170.41
32. Other payables
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
134
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
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
135
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., 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
136
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.
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
137
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
(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
138
Repay during the Reporting
Bonds name Ending balance
Period
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
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 within
18,580,455.76 32,092,127.18
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
139
expenses
Less: Current portion (see
155,856,358.05 270,119,697.71
Note 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
140
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
12,952,939.23 719,607.72 12,233,331.51 Related to
Konka Industrial Park
141
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
assets
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
142
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.
143
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 after
transferred transferred expe tax
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 or -6,398,878.20 -6,398,878.20
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
144
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 after
transferred transferred expe tax
tax
in profit or in retained nse
loss in the earnings in
Current the Current
Period Period
reclassified to profit or
loss
Of which: Other
comprehensive income
that will be reclassified -1,215,133.65 -38,929.34 -38,929.34 -1,254,062.99
to profit or loss under
the equity method
Differences arising -12,722,076.02 4,148,210.70 3,328,259.75 819,950.95 -9,393,816.27
from the translation of
145
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 after
transferred transferred expe tax
tax
in profit or in retained nse
loss in the earnings in
Current the Current
Period Period
foreign currency
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
146
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 the
172,818,438.83 905,352,997.68
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
147
Item Reporting Period Same period of last year
Main
16,243,380,757.24 16,013,632,913.79 21,412,726,539.67 20,510,002,960.62
operations
Other
652,089,519.57 468,807,708.05 397,435,333.41 307,172,753.16
operations
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
Environm
ental
protectio 774,458,509.72 749,206,296.93 2,724,186,133.96 2,439,448,446.23
n
business
Consume
r
1,900,207,771.57 1,711,652,138.98 1,752,194,252.46 1,608,490,566.46
appliance
s business
PCB
291,397,810.91 280,056,849.29 365,622,811.21 337,306,983.48
business
Semi-con
ductor 50,916,083.90 52,958,914.59 241,973,760.06 229,060,263.71
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
148
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 construction
8,149,278.82 5,272,168.22
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
149
Item Reporting Period Same period of last year
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
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
150
Resources Reporting Period Same period of last year
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
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 value 239,092,140.86 68,185,019.88
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
151
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
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
Period last year
non-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
12,843,396.23 12,843,396.23
disposal income
Total 12,782,328.52 88,668.35 12,782,328.52
60. Non-operating Income
(1) List of Non-operating Income
152
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
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
Item Reporting Period
last year non-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
153
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
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
154
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
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
155
Item Reporting Period Same Period of last year
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
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-lived -12,782,328.52 -88,668.35
assets (gains: negative)
Losses on scrap of fixed assets (gains:
465,018.35 199,386.31
negative)
Losses on changes in fair value
638,799.36 -40,362,513.73
(gains: 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
-129,818,410.18 -102,340,668.15
assets (gains: negative)
Increase in deferred income tax 2,283,651.84 -5,615,859.48
156
Item Reporting Period Same Period of last year
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
-421,259,506.73 -1,284,761,222.03
activities
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
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
157
Item Amount
Cash or cash equivalents received in the Reporting Period from disposal
302,280,000.00
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 losing
5,185,649.96
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
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.
158
Item Ending carrying value Reason for restriction
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
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
159
Ending foreign Ending balance
Item Exchange rate
currency balance converted to RMB
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
Deferred revenue/Other
Industry support funds 263,841,311.98 227,351,711.98
income
Rewards and subsidies 137,702,485.28 Deferred revenue/Other 90,960,177.86
160
Amount recorded in
Category Amount Listed items the current profit or
loss
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.
161
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 to
Xi'an
22,000.00 100.00 Transfer 2022-6-27 the underlying equity have been 12,128.87
Huasheng
transferred
Wuhan The rights and obligations related to
Industrial 5,500.00 55.00 Transfer 2022-6-27 the underlying equity have been 4,865.34
Development transferred
The rights and obligations related to
Sichuan
2,728.00 31.00 Transfer 2022-4-15 the underlying equity have been 2,123.96
Chengrui
transferred
(Continued)
162
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
163
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 Newly
High-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.
164
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 Indirec gaining
tly tly
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
Chengdu Konka Sichuan, Sichuan,
5 Manufacturing industry 100 nt or
Electronic Chengdu Chengdu investment
Establishme
6 Computer, telecommunications and other 100 nt or
Nantong Hongdin Jiangsu, Nantong Jiangsu, Nantong
electronic equipment manufacturing investment
165
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Guangdong, Guangdong, Software and information technology
7 Youzhihui 100 nt or
Shenzhen Shenzhen services investment
Establishme
Guangdong, Guangdong,
8 Xiaojia Technology Retail trade 100 nt or
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
14 Konka Circuit Guangdong, Guangdong, Manufacturing industry 100 Establishme
166
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Shenzhen Shenzhen nt or
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
Guangdong, Guangdong,
17 Boluo Precision Manufacturing industry 100 nt or
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
Jiangsu, Jiangsu,
20 Jiangsu Konka Smart Manufacturing industry 51 nt or
Changzhou Changzhou investment
Anhui Electrical Establishme
21 Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 51
Appliance nt or
167
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
22 Frestec Refrigeration Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51 nt or
investment
Establishme
Frestec Electrical
23 Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51 nt or
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
Guangdong, Guangdong,
26 Konka Investment Capital market services 100 nt or
Shenzhen Shenzhen investment
Establishme
27 Yibin Konka Technology Industrial park development and operation 100 nt or
Sichuan, Yibin Sichuan, Yibin
Park management investment
Establishme
28 Guangdong, Guangdong, 100 nt or
Konka Capital Capital market services
Shenzhen Shenzhen investment
168
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Guangdong, Guangdong,
29 Konka Suiyong Commercial services 51 nt or
Shenzhen Shenzhen investment
Establishme
Guangdong, Guangdong,
30 Shengxing Industrial Commercial services 51 nt or
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
Beijing Konka
33 Beijing Beijing Sale of home appliance 100 nt or
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
36 Suining Electronic Sichuan, Suining Sichuan, Suining Commercial services 100 Establishme
169
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Technological nt or
investment
Innovation
Establishme
37 Shanghai Konka Shanghai Shanghai Real estate 100 nt or
investment
Establishme
38 Yantai Kangjin Shandong, Yantai Shandong, Yantai Real estate 62.8 nt or
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 Chongqing Konka Chongqing Chongqing Software and information technology 100
nt or
170
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
services investment
Establishme
44 Kowin Memory Guangdong, Guangdong, Computer, telecommunications and other 100 nt or
(Shenzhen) Shenzhen Shenzhen electronic equipment manufacturing investment
Establishme
Kowin Memory (Hong China, Hong China, Hong Wholesale of computers, software and
45 100 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
Guangdong, Guangdong,
48 Shenzhen Nianhua Commercial services 100 nt or
Shenzhen Shenzhen investment
Establishme
49 Konka Huazhong Hunan, Changsha Hunan, Changsha Commercial services 100 nt or
investment
Establishme
50 Guangdong, Guangdong, 100 nt or
Wankaida Software development
Shenzhen Shenzhen investment
171
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Shenzhen Chuangzhi Guangdong, Guangdong,
51 Wholesale 100 nt or
Electrical Appliances Shenzhen Shenzhen investment
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
Telecommunication Guangdong, Guangdong,
55 Manufacturing industry 75 25 nt or
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
58 Suining Konka Smart Sichuan, Suining Sichuan, Suining Wholesale 100 Establishme
172
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
nt or
investment
Chongqing
Establishme
Optoelectronic
59 Chongqing Chongqing Research & experiment development 75 nt or
Technology Research investment
Institute
Establishme
Ecological protection and environmental
60 Yibin Kangrun Sichuan, Yibin Sichuan, Yibin 67 nt or
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
173
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
Jiangxi High Transparent
65 Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing 51 nt or
Substrate investment
Establishme
Jiangsu Konka Special Yancheng, Yancheng,
66 Wholesale 51 nt or
Material Jiangsu Jiangsu investment
Establishme
67 Jiangxi, Jiangxi, 51 nt or
Xinfeng Microcrystalline Manufacturing and processing
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
72 Jiaxin Technology China, Hong China, Hong Trade and services 51 Establishme
174
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Kong Kong nt or
investment
Establishme
73 Konka Ronghe Zhejiang, Jiaxing Zhejiang, Jiaxing Wholesale and retail trade 51 nt or
investment
Establishme
74 Recycling, processing and sales of 51 nt or
Chongqing Kangxingrui Chongqing Chongqing
renewable resources investment
Establishme
Chongqing Kangxingrui Recycling, processing and sales of waste
75 Chongqing Chongqing 51 nt or
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) Comprehensive utilization of abandoned Establishme
79 Shandong, Yantai Shandong, Yantai 51
Environmental resources nt or
175
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Protection investment
Establishme
80 Jiangkang (Shanghai) 51 nt or
Shanghai Shanghai Research & experiment development
Technology investment
Establishme
Konka Intelligent Guangdong, Guangdong,
81 Research & experiment development 51 nt or
Manufacturing Shenzhen Shenzhen investment
Establishme
82 Yantai Laikang Shandong, Yantai Shandong, Yantai Commercial services 51 nt or
investment
Establishme
83 Konka Material Hainan, Haikou Hainan, Haikou Commercial services 100 nt or
investment
Enterprise management consulting, Establishme
Guangdong, Guangdong,
84 Konka Ventures incubation management, housing leasing, 51 nt or
Shenzhen Shenzhen investment
etc.
Establishme
85 Yibin Konka Incubator Sichuan, Yibin Sichuan, Yibin Commercial services 51 nt or
investment
Other professional consultation and Establishme
86 Yantai Konka Shandong, Yantai Shandong, Yantai 51
investigation nt or
176
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
87 Sichuan, Sichuan, 51 nt or
Chengdu Anren Enterprise incubation management
Chengdu Chengdu investment
Establishme
Konka Enterprise Guizhou, Guizhou,
88 Enterprise management consulting 51 nt or
Service Guiyang Guiyang investment
Establishme
89 Konka Guangdong, Guangdong, 51 nt or
Commercial services
Eco-Development Shenzhen Shenzhen investment
Establishme
90 Germany, Germany, 100 nt or
Konka Europe International trade
Frankfurt Frankfurt investment
Establishme
China, Hong China, Hong
91 Hong Kong Konka International trade 100 nt or
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
177
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Establishme
94 Kanghao Technology Egypt, Cairo Egypt, Cairo International trade 67 nt or
investment
Establishme
China, Hong China, Hong
95 Hongdin Invest Investment holding 100 nt or
Kong Kong investment
Establishme
96 Chain Kingdom Memory China, Hong China, Hong 51 nt or
International trade
Technologies Kong Kong investment
Establishme
97 Chain Kingdom Memory Guangdong, Guangdong, 51 nt or
Trade and services
Technologies (Shenzhen) Shenzhen Shenzhen investment
Establishme
China, Hong China, Hong
98 Hongjet Trade and services 51 nt or
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
101 Yijiakang Smart Guangdong, Guangdong, Software and information technology 100 Establishme
178
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
Terminal Shenzhen Shenzhen services nt or
investment
Guizhou, Guizhou,
Qiandongnan Qiandongnan Establishme
Guizhou Kangkai
102 Miao and Dong Miao and Dong Manufacturing and processing 51 nt or
Material Technology investment
Autonomous Autonomous
Prefecture Prefecture
Guizhou, Guizhou,
Qiannan Buyi Qiannan Buyi Establishme
Guizhou Konka New
103 and Miao and Miao Manufacturing and processing 51 nt or
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
Lvfeng, Lvfeng, Establishme
105 Guangdong Xinwei Semiconductors 100
Guangdong Guangdong nt or
179
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
investment
Establishme
106 Kangxinrun Renewable Recycling, processing and sales of 51 nt or
Chongqing Chongqing
Resources renewable resources investment
Guizhou, Guizhou,
Qiannan Buyi Qiannan Buyi Establishme
107 Guizhou Kanggui 70 nt or
and Miao and Miao Manufacturing and processing
Material Technology investment
Autonomous Autonomous
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
180
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indirec gaining
tly tly
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
Guizhou Konka New Manufacture of non-metallic mineral
113 and Miao and Miao 98 nt or
Energy products investment
Autonomous Autonomous
Prefecture Prefecture
Establishme
Zhejiang Konka Zhejiang, Zhejiang,
114 Research & experiment development 100 nt or
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
proportion of attributable to the distributed to
Name non-controlling interests
non-controlling non-controlling non-controlling
at the period-end
interests (%) interests interests
181
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
(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
182
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
183
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
184
Ending balance/Reporting Period
Dongfang Konka No.1
Item Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
shareholding proportion
Adjusted items
- Goodwill
- 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
185
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
shareholding proportion 467,638,787.38 94,278,354.91
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
186
Ending
Beginning balance/The
Item balance/Reporting
Same period of last year
Period
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 Instrum ents
The Company’s main financial instruments include borrowings, accounts receivable, accounts
payable, trading financial assets and liabilities, etc. Please refer to Note VI for detailed descriptions
of various financial instruments. Risks related to these financial instruments, and risk management
policies the Company has adopted to reduce these risks are described as follows. The Company
management manages and monitors the risk exposure in order to ensure the above risks to be
controlled in a limited scope.
1. Various Risk Management Objectives and Policies
The goals of the Company engaged in the risk management is to achieve the proper balance
between the risks and benefits, reduced the negative impact to the Company operating performance
risk to a minimum, maximized the profits of shareholders and other equity investors. Based on the
risk management goal, the basic strategy of the Company's risk management is 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
187
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.
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
188
credit approval, and implement other monitoring procedures to ensure that necessary measures are
taken to recover overdue claims. In addition, the Company reviews the recovery of each single
receivable on each balance sheet date to ensure that sufficient bad debt provision is made for the
unrecoverable amount. Therefore, the Company's management believes that the Company's credit
risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk of
working capital is low.
The Company has adopted necessary policies to ensure that all customers have good credit records.
Except for the top five customers in terms of the amount of accounts receivable, the Company has
no other major credit concentration risk. For the financial assets of the Company that have been
individually impaired, please refer to 4. Accounts Receivable and 7. Other Receivables in Note VI.
(3) Liquidity Risk
Liquidity risk refers to the risk that the Company is unable to fulfill its financial obligations on the
due date. The Company manages liquidity risk in the method of ensuring that there is sufficient
liquidity to fulfill debt obligations without causing unacceptable loss or damage to the Company’s
reputation. In order to mitigate the liquidity risk, the Management of the Company has carried out a
detailed inspection on the liquidity of the company, including the maturity of accounts payable and
other payables, bank credit line and bond financing. The conclusion is that the Company has
sufficient funds to meet the needs of the Group's short-term 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:
189
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
190
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
191
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:
Item Interest rate 30 June 2022
192
fluctuations Impact on shareholders'
Impact on net profit
equity
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
193
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 at measurement items at Total
level 1 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
194
Ending fair value
Fair value Fair value Fair value
Item
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
II. Inconsistent fair value measurement
Total assets of inconsistent fair value measurement
Total liabilities of inconsistent fair value measurement
195
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 (%)
196
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
197
Name Relationship with the Company
Dongguan Kangjia New Materials Technology
Associated enterprise
Co., Ltd.
Dongguan Kangzhihui Electronics Co., Ltd. Associated enterprise
Shenzhen Jielunte Technology Co., Ltd. Associated enterprise
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., Ltd. Associated enterprise
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 Appliances
Associated enterprise
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., Ltd. Minority shareholder of subsidiary
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
198
Name Relationship with the Company
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
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., Ltd.
Purchase of
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 & FURNITURE Purchase of
9,072,974.63 13,904,763.96
CO., LIMITED goods
199
Same period of
Related party Content Reporting Period
last year
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
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
200
Same Period of
Related party Content Reporting Period
last year
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
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. and Sales of
goods 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
goods and
Dongguan Kangzhihui Electronics Co., Ltd. 12,592,625.44 11,344,197.37
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
201
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
Commercial
OCT Group Co.
Konka Group Co., residences
Ltd. And its 755,425.60 683,385.60
Ltd. and office
subsidiaries
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)
CN
Anhui Tongchuang 6,000.00 5,000.00 2021-7-16 2022-7-16 Not
Y
CN
Anhui Tongchuang 3,000.00 3,000.00 2021-10-28 2022-10-27 Not
Y
CN
Anhui Tongchuang 5,000.00 2022-4-14 2023-4-14 Not
Y
CN
Anhui Tongchuang 3,000.00 3,000.00 2022-6-2 2023-6-1 Not
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
202
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)
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
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
203
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)
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
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
204
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)
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
Transparent 5,000.00 889.08 2019-12-20 2022-12-20 Not
Y
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
205
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)
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.
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
206
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)
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
CN
OCT Group Co. Ltd. 80,000.00 2021-7-9 2024-7-9 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
207
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
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
Jiangxi Xinzixin Real CN
2,940.00 2022-6-29 2023-6-28 Not
Estate Co., Ltd. Y
Jiangxi Xinzixin Real 406.89 CN 2019-6-26 2022-6-26 Not
208
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or 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
209
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
Zhu Xinming 231.91 CN 2022-1-5 2022-12-31 Not
210
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
Y
CN
Zhu Xinming 1,225.00 2022-6-1 2022-8-31 Not
Y
CN
Zhu Xinming 44.05 2022-1-5 2022-12-31 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
211
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
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
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.
212
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
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
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd.,
Huaying Gaokede
CN
Electronics Technology 735.00 2018-1-1 2021-12-31 Not
Y
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.
213
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
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
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:
214
Cur
Maturity
Name of related parties Amount ren Start date
date
cy
Chongqing Lanlv Moma Real Estate CN
188,430,000.00 2020-11-25 2021-11-24
Development Co., Ltd. Y
CN
Yantai Kangyue Investment Co., Ltd. 128,527,000.00 2021-12-16 2022-12-15
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
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 25,000,000.00 CN 2022-6-1 2022-12-30
215
Cur
Maturity
Name of related parties Amount ren Start date
date
cy
Development Co., Ltd. Y
Dongguan Guankang Hongyu
Investment Co., Ltd.(Original name： CN
196,000,000.00 2021-8-6 2022-8-5
Dongguan Konka Investment Co., Y
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
CN
Shandong Econ Technology Co., Ltd. 50,000,000.00 2022-3-22 2022-12-31
Y
CN
Shandong Econ Technology Co., Ltd. 83,191,149.03 2022-3-28 2022-12-31
Y
CN
Shandong Econ Technology Co., Ltd. 49,960,000.00 2022-3-30 2022-12-31
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
OCT Group and its Transfer of patents, 12,843,396.23
subsidiaries and associates software copyrights
216
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.
HOHO
ELECTRICAL
& 118,073,849.53 9,374,854.36 113,606,433.75 7,481,903.77
FURNITURE
CO.,
LIMITED
Anhui Kaikai
Shijie
E-commerce 95,060,834.88 5,641,125.48 148,730,451.88 8,135,088.28
Co., 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.
217
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
Shenzhen
Konda 11,165,355.20 227,773.25 12,099,780.90 247,013.76
E-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
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 92,560.46 1,815,713.26
Co., Ltd. and
its subsidiaries
Total 59,068,605.27 30,815,713.26
218
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
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
ELECTRICAL
&
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
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.
219
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
Shenzhen
Kanghongxing
Smart 4,298,225.15 4,298,225.15
Technology
Co., Ltd.
HOHO
ELECTRICAL
& 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:
Xi'an
Huasheng
Jiacheng Real 1,073,812,400.00
Estate Co.,
Ltd.
220
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
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
221
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
222
Ending carrying Opening carrying
Related party
balance balance
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.
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., Ltd. 5,348,030.00 1,354,030.00
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
223
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 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
224
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., 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
225
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.
(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.
226
(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
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
227
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
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
Withd
Category rawal
Proport Carrying value
Amount Amount propo
ion (%)
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
228
Ending balance
Carrying balance Bad debt provision
Withd
Category rawal
Proport Carrying value
Amount Amount propo
ion (%)
rtion
(%)
losses
withdrawn
by
portfolio
Of which:
Aging 520,881,762.23 8.10 188,182,787.20 36.13 332,698,975.03
portfolio
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 963,517,996.45 18.14 660,600,525.26 68.56 302,917,471.19
expected
credit
229
Opening balance
Carrying balance Bad debt provision
Withd
Category Propor rawal
Carrying value
Amount tion Amount propo
(%) rtion
(%)
losses
withdrawn
individuall
y
Accounts
receivable
of
expected
credit
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 (%)
230
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
Construction 71,689,096.65 46,662,912.82 65.09 difficult to recover
Group Co., Ltd. in full
CCCC First Harbor Expected to be
Engineering 55,438,105.00 48,915,975.00 88.24 difficult to recover
Company Ltd. in full
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
231
Ending balance
Aging Bad debt Withdrawal
Carrying balance
provision proportion (%)
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
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
232
(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
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
233
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
Stage 1 Stage 2 Stage 3
Expected loss
Expected Expected credit
Bad debt in the duration
credit loss of losses for the entire Total
provision (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 -37,962.09 37,962.09
amount of
other
receivables
234
Stage 1 Stage 2 Stage 3
Expected loss
Expected Expected credit
Bad debt in the duration
credit loss of losses for the entire Total
provision (credit
the next 12 duration (with
impairment not
months credit impairment)
occurred)
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
(3) Withdrawing bad debt provision for other receivables according to group
Categor Ending balance
y Carrying amount Bad debt provision Carrying value
235
With
draw
Propo
al
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-ris
k 18,460,535.94 0.16 4,895,507.60 26.52 13,565,028.34
portfolio
Related
9,171,016,251.96 81.46 9,171,016,251.96
party
236
Ending balance
Carrying amount Bad debt provision
With
Categor draw
y Propo
al Carrying value
Amount rtion Amount
prop
(%)
ortio
n (%)
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
Catego Withd
ry Propo rawal
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
237
Beginning balance
Carrying balance Bad debt provision
Catego Withd
ry Propo rawal
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
238
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.
239
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 of
Investee Beginning balance Increase Decrease Ending balance impairment this 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
240
Provision for Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this depreciation
period reserve
Konka Unifortune 15,300,000.00 15,300,000.00
Wankaida 10,000,000.00 10,000,000.00
Dongguan Konka 274,783,988.91 274,783,988.91
Konka Europe 3,637,470.00 3,637,470.00
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 Technology 25,500,000.00 25,500,000.00
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
241
Provision for Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this depreciation
period reserve
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
Shenzhen Nianhua 30,000,000.00 30,000,000.00
Shenzhen
100,000,000.00 100,000,000.00
KONSEMI
Konka
50,000.00 50,000.00
Eco-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
242
Provision for Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this depreciation
period reserve
Appliances
Kanghong (Yantai)
Environmental 1,025,100.00 1,025,100.00
Protection
Chongqing
25,500,000.00 25,500,000.00
Kangxingrui
Chongqing
Optoelectronic
933,333,333.33 933,333,333.33
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
243
Provision for Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this depreciation
period reserve
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
Material 70,000,000.00 70,000,000.00
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
244
Provision for Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this depreciation
period reserve
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
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
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.
245
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
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 Protection
325,645,840.91 11,179,621.33
Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 13,097,210.11 -1,564,990.77
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
246
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
Development Co., Ltd.
Nantong Kangjian Technology Industrial
14,610,460.04 -588,275.99
Park Operations and Management Co., 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 Co.,
-261,753.11 261,753.11
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
Co., Ltd.
Shandong Econ Technology Co., Ltd. 823,028,634.77 59,671,172.50
247
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
Dongguan Kangjia New Materials
3,919,896.55 -451,280.15
Technology Co., Ltd.
Shenzhen E2info Network Technology Co.,
124,903,499.07 17,622,654.08
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.
248
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
Chutian Dragon Co., Ltd. -2,854,608.30 4,410,993.60 571,707,518.49
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
249
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
Chuzhou Konka Technology Industry
4,594,194.89
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
39,751,484.01
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 Co.,
4,537,678.79
Ltd.
250
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
Yantai Kangyun Industrial Development Co.,
6,524,678.67
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..
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
251
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.
252
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 financial 32,966,971.77
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
253
Item Amount Note
and contract assets impairment
Gain/loss on entrustment loans 54,416,927.25
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 1.87% 0.0718 0.0718
254
Weighted average EPS (Yuan/share)
Profit in Reporting Period
ROE (%) EPS-basic EPS-diluted
shareholders of the Company as the
Parent
Net profit attributable to ordinary
shareholders of the Company as the
-8.03% -0.3083 -0.3083
Parent before exceptional gains and
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
255
