Konka Group Co., Ltd. Third Quarterly Report 2022
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2022-83
Bond Code: 114894, 133003 Bond Name: 21 Konka 01, 21 Konka 02
133040, 149987 21 Konka 03, 22 Konka 01
133306, 133333 22 Konka 03, 22 Konka 05
KONKA GROUP CO., LTD.
THIRD QUARTERLY REPORT 2022
Konka Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the
Company’s Board of Directors hereby guarantee that the contents of this Report are true, accurate
and complete and free of any misrepresentations, misleading statements or material omissions.
Important Notes:
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of the Company hereby guarantee that the contents of this
Report are true, accurate and complete and free of any misrepresentations, misleading statements
or material omissions, and collectively and individually accept legal responsibility for such
contents.
2. The Company’s legal representative, Chief Financial Officer (CFO), and head of the financial
department (equivalent to financial manager) hereby guarantee that the financial statements
carried in this Report are factual, accurate and complete.
3. Indicate by tick mark whether the financial statements in this Report have been audited by an
independent auditor.
□Yes √ No
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
YoY change
Q3 2022 Q1-Q3 2022 YoY change (%)
(%)
Operating revenue (RMB) 7,700,546,365.26 -21.56% 24,596,016,642.07 -22.23%
Net profit attributable to the listed
-37,227,714.31 82.43% 135,590,724.52 207.29%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -335,657,322.29 2.39% -1,078,013,504.00 -2.28%
exceptional gains and losses (RMB)
Net cash generated from/used in
—— —— -67,596,351.18 95.31%
operating activities (RMB)
Basic earnings per share (RMB/share) -0.0155 82.39% 0.0563 207.24%
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Konka Group Co., Ltd. Third Quarterly Report 2022
Diluted earnings per share (RMB/share) -0.0155 82.39% 0.0563 207.24%
Weighted average return on equity (%) -0.41% 2.13% 1.48% 2.99%
30 September 2022 31 December 2021 Change (%)
Total assets (RMB) 39,223,352,281.70 39,874,520,771.26 -1.63%
Equity attributable to the listed
9,251,296,321.25 9,095,278,436.41 1.72%
company’s shareholders (RMB)
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q3 2022 Q1-Q3 2022 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
65,201,958.69 722,953,351.42
allowance write-offs)
Government grants through profit or loss (exclusive of government grants
continuously given in the Company’s ordinary course of business at fixed 237,051,376.50 573,038,743.54
quotas or amounts as per the government’s policies and standards)
Gain or loss on fair-value changes on held-for-trading financial assets and
liabilities & income from disposal of held-for-trading financial assets and
14,429,370.03 47,396,341.80
liabilities and available-for-sale financial assets (exclusive of the effective
portion of hedges that arise in the Company’s ordinary course of business)
Reversed portions of impairment allowances for receivables which are
32,575,571.58 32,575,571.58
tested individually for impairment
Gain or loss on loan entrustments 41,371,824.79 95,788,752.04
Non-operating income and expense other than the above 65,105,727.71 92,002,541.91
Less: Income tax effects 97,012,481.90 232,277,142.51
Non-controlling interests effects (net of tax) 60,293,739.42 117,873,931.26
Total 298,429,607.98 1,213,604,228.52 --
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item Amount (RMB) Reason
Government grants continuously given in the Company’s ordinary
Tax rebates on software 11,853,122.32 course of business at fixed quotas or amounts as per the
government’s policies and standards
(III) Changes in Key Financial Statement Line Items and Explanation
√ Applicable □ Not applicable
Unit: RMB
Percentage
Item 30 September 2022 1 January 2022 Main reason for change
of change
Recovery of notes receivable in the Reporting
Notes receivable 1,227,793,096.11 1,777,477,481.28 -30.92%
Period
Decreased prepayments to suppliers and partners
Prepayments 373,941,807.92 631,400,953.86 -40.78%
in the Reporting Period
Increased constructions in progress in relation to
Construction in progress 2,086,668,242.52 1,490,777,831.39 39.97%
industrial parks in the Reporting Period
Decreased prepayments for land in the Reporting
Other non-current assets 1,695,607,267.24 2,648,530,490.12 -35.98%
Period
Pay the previous large amount of accounts
Accounts payable 2,529,930,427.85 3,784,315,091.41 -33.15%
payable to suppliers during the current period
Current portion of non- Redemption of bonds payable that became
670,292,800.68 5,089,586,269.32 -86.83%
current liabilities mature in the Reporting Period
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Konka Group Co., Ltd. Third Quarterly Report 2022
Long-term borrowings 8,366,033,001.46 3,529,140,539.09 137.06% New borrowings in the Reporting Period
Bonds payable 4,090,653,826.03 2,293,698,899.30 78.34% Issuance of bonds in the Reporting Period
Percentage
Item Q1-Q3 2022 Q1-Q3 2021 Main reason for change
of change
Decreased interest expense and exchange rate
Finance costs 262,346,112.20 675,851,664.46 -61.18%
fluctuations in the Reporting Period
Interest income 190,309,274.96 123,952,533.58 53.53% Increased interest income from entrustment loans
Income from equity disposal in the Reporting
Return on investment 836,530,565.91 467,513,252.27 78.93%
Period
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders 86,733 Number of preference shareholders with resumed voting rights (if any) 0
Top 10 shareholders
Sharehol Shares in pledge,
ding Total shares Restricted marked or frozen
Name of shareholder Nature of shareholder
percentag held shares held
Status Shares
e
OVERSEAS CHINESE TOWN State-owned legal
21.75% 523,746,932 0
HOLDINGS COMPANY person
CITIC SECURITIES BROKERAGE
Foreign legal person 7.48% 180,001,110 0
(HONG KONG) CO., LTD.
Domestic natural
WANG JINGFENG 4.63% 111,411,100 0
person
GUOYUAN SECURITIES BROKER
Foreign legal person 2.46% 59,227,225 0
(HK) CO., LTD.
HOLY TIME GROUP LIMITED Foreign legal person 2.38% 57,289,100 0
GAOLING FUND,L.P. Foreign legal person 2.19% 52,801,250 0
NAM NGAI Foreign natural person 0.96% 23,000,000 0
CHINA MERCHANTS SECURITIES State-owned legal
0.81% 19,457,720 0
(HK) LIMITED person
BOCOM INTERNATIONAL
Foreign legal person 0.78% 18,896,037 0
SECURITIES LIMITED
HONG KONG SECURITIES
Foreign legal person 0.66% 15,842,531 0
CLEARING COMPANY LIMITED
Top 10 unrestricted shareholders
Unrestricted ordinary Shares by class
Name of shareholder
shares held Class Shares
OVERSEAS CHINESE TOWN HOLDINGS
523,746,932 RMB-denominated ordinary share 523,746,932
COMPANY
CITIC SECURITIES BROKERAGE (HONG
180,001,110 Domestically listed foreign share 180,001,110
KONG) CO., LTD.
WANG JINGFENG 111,411,100 RMB-denominated ordinary share 111,411,100
GUOYUAN SECURITIES BROKER (HK)
59,227,225 Domestically listed foreign share 59,227,225
CO., LTD.
HOLY TIME GROUP LIMITED 57,289,100 Domestically listed foreign share 57,289,100
GAOLING FUND,L.P. 52,801,250 Domestically listed foreign share 52,801,250
NAM NGAI 23,000,000 Domestically listed foreign share 23,000,000
CHINA MERCHANTS SECURITIES (HK)
19,457,720 Domestically listed foreign share 19,457,720
LIMITED
BOCOM INTERNATIONAL SECURITIES
18,896,037 Domestically listed foreign share 18,896,037
LIMITED
HONG KONG SECURITIES CLEARING
15,842,531 RMB-denominated ordinary share 15,842,531
COMPANY LIMITED
Related or acting-in-concert Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
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Konka Group Co., Ltd. Third Quarterly Report 2022
parties among shareholders above majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for short),
holds 180,001,110 and 18,360,000 ordinary shares in the Company respectively through
CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK)
Limited. Happy Bloom Investment Limited and Overseas Chinese Town Holdings Company
are parties acting in concert. Other than that, it is unknown whether the other shareholders are
related parties or acting-in-concert parties or not.
Top 10 ordinary shareholders
Wang Jingfeng holds 111,411,100 A-shares in the Company through his securities account for
involved in securities margin
customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
trading (if any)
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
(I) The non-public offering of corporate bonds: So far, a total of RMB1.2 billion of corporate
bonds has been issued on 8 September 2022 and 18 October 2022 for the RMB2.7 billion
corporate bonds non-public offering program, and the issuance of the remaining amount of
corporate bonds is in progress.
(II) Chongqing Konka Semiconductor Photoelectric Industrial Park has been officially completed
and starts production and trial operation. And construction of the Xi’an Konka Smart Appliances
Headquarters Project is about to be completed.
IV Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
30 September 2022
Unit: RMB
Item 30 September 2022 1 January 2022
Current assets:
Monetary assets 5,789,648,566.31 6,489,553,211.24
Settlement reserve
Loans to other banks and financial institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 1,227,793,096.11 1,777,477,481.28
Accounts receivable 2,906,003,576.69 3,397,729,481.07
Receivables financing 23,044,759.72 71,490,688.54
Prepayments 373,941,807.92 631,400,953.86
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,916,724,393.02 1,837,459,705.64
Including: Interest receivable 4,076,863.43 2,573,082.79
Dividends receivable
Financial assets purchased under resale agreements
Inventories 4,091,460,535.16 4,068,537,809.18
Contract assets
Assets held for sale
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Konka Group Co., Ltd. Third Quarterly Report 2022
Current portion of non-current assets 23,221,539.24 28,105,523.78
Other current assets 3,043,370,980.65 2,299,963,391.24
Total current assets 19,395,209,254.82 20,601,718,245.83
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 4,430,400.00 18,495,499.14
Long-term equity investments 6,339,642,148.66 5,902,588,939.51
Investments in other equity instruments 23,841,337.16 23,841,337.16
Other non-current financial assets 2,702,852,398.04 2,293,361,603.68
Investment property 769,667,119.64 776,525,061.54
Fixed assets 3,888,453,944.19 4,010,295,277.14
Construction in progress 2,086,668,242.52 1,490,777,831.39
Productive living assets
Oil and gas assets
Right-of-use assets 62,105,021.51 71,210,415.37
Intangible assets 964,809,503.20 975,295,916.08
Development costs 22,498,875.09 16,870,310.70
Goodwill 22,196,735.11 22,196,735.11
Long-term prepaid expense 344,957,911.79 297,497,383.39
Deferred income tax assets 900,412,122.73 725,315,725.10
Other non-current assets 1,695,607,267.24 2,648,530,490.12
Total non-current assets 19,828,143,026.88 19,272,802,525.43
Total assets 39,223,352,281.70 39,874,520,771.26
Current liabilities:
Short-term borrowings 8,746,004,712.06 9,920,675,121.08
Borrowings from the central bank
Loans from other banks and financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,017,099,083.62 1,116,336,958.91
Accounts payable 2,529,930,427.85 3,784,315,091.41
Advances from customers
Contract liabilities 769,921,677.08 652,910,408.02
Financial assets sold under repurchase agreements
Customer deposits and deposits from other banks and financial institutions
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 161,956,025.91 410,747,084.80
Taxes and levies payable 359,254,927.80 295,825,170.41
Other payables 1,412,888,766.44 1,788,177,748.59
Including: Interest payable 59,235,455.90 174,383,177.08
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 670,292,800.68 5,089,586,269.32
Other current liabilities 115,907,033.70 109,742,188.24
Total current liabilities 15,783,255,455.14 23,168,316,040.78
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 8,366,033,001.46 3,529,140,539.09
Bonds payable 4,090,653,826.03 2,293,698,899.30
Including: Preference shares
Perpetual bonds
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Konka Group Co., Ltd. Third Quarterly Report 2022
Lease liabilities 51,963,509.22 42,532,869.63
Long-term payables 21,433,136.36 140,687,570.78
Long-term employee benefits payable 4,958,389.07 5,111,296.75
Provisions 112,487,613.76 106,276,535.85
Deferred income 274,491,271.90 206,302,424.92
Deferred income tax liabilities 79,547,666.58 76,894,581.97
Other non-current liabilities 118,961,639.55 104,610,663.76
Total non-current liabilities 13,120,530,053.93 6,505,255,382.05
Total liabilities 28,903,785,509.07 29,673,571,422.83
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 365,814,774.70 234,389,963.10
Less: Treasury stock
Other comprehensive income -10,936,468.75 -20,336,087.87
Specific reserve
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General reserve
Retained earnings 5,244,292,243.06 5,229,098,788.94
Total equity attributable to owners of the Company as the parent 9,251,296,321.25 9,095,278,436.41
Non-controlling interests 1,068,270,451.38 1,105,670,912.02
Total owners’ equity 10,319,566,772.63 10,200,949,348.43
Total liabilities and owners’ equity 39,223,352,281.70 39,874,520,771.26
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
2. Consolidated Income Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2022 Q1~Q3 2021
1. Revenues 24,596,016,642.07 31,626,746,378.63
Including: Operating revenue 24,596,016,642.07 31,626,746,378.63
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 26,126,675,368.63 32,958,502,701.12
Including: Cost of sales 23,975,162,049.26 30,206,985,064.55
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 77,125,711.11 65,291,404.77
Selling expense 871,347,414.06 1,024,179,934.62
Administrative expense 577,188,118.60 553,122,321.69
R&D expense 363,505,963.40 433,072,311.03
Finance costs 262,346,112.20 675,851,664.46
Including: Interest expense 692,836,273.51 743,648,860.62
Interest income 190,309,274.96 123,952,533.58
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Konka Group Co., Ltd. Third Quarterly Report 2022
Add: Other income 584,491,772.86 760,063,480.80
Return on investment (“-” for loss) 836,530,565.91 467,513,252.27
Including: Share of profit or loss of joint ventures and associates 77,512,338.05 75,468,924.12
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) 21,962,896.84 80,454,582.18
Credit impairment loss (“-” for loss) -61,242,970.31 -83,508,804.27
Asset impairment loss (“-” for loss) -13,523,962.19 -37,285,530.58
Asset disposal income (“-” for loss) 12,420,007.06 613,907.69
3. Operating profit (“-” for loss) -150,020,416.39 -143,905,434.40
Add: Non-operating income 97,857,275.38 65,341,959.01
Less: Non-operating expense 6,543,182.17 8,552,951.51
4. Gross profit (“-” for loss) -58,706,323.18 -87,116,426.90
Less: Income tax expense -72,029,417.98 41,529,133.86
5. Net profit (“-” for net loss) 13,323,094.80 -128,645,560.76
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 13,323,094.80 -128,645,560.76
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the Company as the parent
135,590,724.52 -126,378,339.68
(“-” for net loss)
5.2.1 Net profit attributable to non-controlling interests (“-” for net loss) -122,267,629.72 -2,267,221.08
6. Other comprehensive income, net of tax 10,932,642.27 -891,213.66
Attributable to owners of the Company as the parent 9,399,619.12 244,470.51
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 9,399,619.12 244,470.51
6.2.1 Other comprehensive income that will be reclassified to profit or
-38,929.34 1,486,086.18
loss under the equity method
6.2.2 Changes in the fair value of other debt investments
6.2.3 Other comprehensive income arising from the reclassification of
financial assets
6.2.4 Credit impairment allowance for other debt investments
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign currency-
9,438,548.46 -1,241,615.67
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests 1,533,023.15 -1,135,684.17
7. Total comprehensive income 24,255,737.07 -129,536,774.42
7.1 Attributable to owners of the Company as the parent 144,990,343.64 -126,133,869.17
7.2 Attributable to non-controlling interests -120,734,606.57 -3,402,905.25
8. Earnings per share
8.1 Basic earnings per share 0.0563 -0.0525
8.2 Diluted earnings per share 0.0563 -0.0525
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
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Konka Group Co., Ltd. Third Quarterly Report 2022
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2022 Q1~Q3 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 24,332,330,642.99 30,451,464,764.24
Net increase in customer deposits and deposits from other banks and
financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, fees and commissions received
Net increase in loans from other banks and financial institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 552,849,875.52 333,893,980.47
Cash generated from other operating activities 1,168,029,091.16 1,172,860,994.12
Subtotal of cash generated from operating activities 26,053,209,609.67 31,958,219,738.83
Payments for commodities and services 23,012,128,420.93 29,601,035,244.82
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other banks and financial
institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 1,434,144,605.34 1,511,165,362.18
Taxes and levies paid 371,845,155.79 710,317,427.85
Cash used in other operating activities 1,302,687,778.79 1,577,936,087.07
Subtotal of cash used in operating activities 26,120,805,960.85 33,400,454,121.92
Net cash generated from/used in operating activities -67,596,351.18 -1,442,234,383.09
2. Cash flows from investing activities:
Proceeds from disinvestment 439,435,929.17 343,726,934.95
Return on investment 102,584,188.29 92,533,320.06
Net proceeds from the disposal of fixed assets, intangible assets and other
2,602,109.26 234,447,891.30
long-lived assets
Net proceeds from the disposal of subsidiaries and other business units 297,094,350.04 133,143,680.12
Cash generated from other investing activities 2,593,171,830.43 1,096,314,874.18
Subtotal of cash generated from investing activities 3,434,888,407.19 1,900,166,700.61
Payments for the acquisition of fixed assets, intangible assets and other
3,242,155,154.65 3,121,184,726.92
long-lived assets
Payments for investments 578,662,796.46 397,009,568.49
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other business units 96,500,200.00
Cash used in other investing activities 299,864,897.73 339,063,661.31
Subtotal of cash used in investing activities 4,120,682,848.84 3,953,758,156.72
Net cash generated from/used in investing activities -685,794,441.65 -2,053,591,456.11
3. Cash flows from financing activities:
Capital contributions received 76,748,000.00 101,867,396.60
Including: Capital contributions by non-controlling interests to 76,748,000.00 101,867,396.60
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Konka Group Co., Ltd. Third Quarterly Report 2022
subsidiaries
Borrowings received 17,289,669,687.55 17,581,759,690.86
Cash generated from other financing activities 299,933,896.84 806,757,381.62
Subtotal of cash generated from financing activities 17,666,351,584.39 18,490,384,469.08
Repayment of borrowings 16,092,793,775.72 11,785,342,761.93
Interest and dividends paid 833,208,967.32 812,169,473.64
Including: Dividends paid by subsidiaries to non-controlling interests 28,420,000.00 7,497,000.00
Cash used in other financing activities 695,068,775.31 680,675,618.15
Subtotal of cash used in financing activities 17,621,071,518.35 13,278,187,853.72
Net cash generated from/used in financing activities 45,280,066.04 5,212,196,615.36
4. Effect of foreign exchange rates changes on cash and cash equivalents 61,441,973.08 -5,440,009.98
5. Net increase in cash and cash equivalents -646,668,753.71 1,710,930,766.18
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 5,321,678,465.32 6,008,986,879.42
(II) Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent
auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
Konka Group Co., Ltd
27 October 2022
9
