Konka Group Co., Ltd. Annual Report 2022
KONKA GROUP CO., LTD.
ANNUAL REPORT 2022
2023-18
March 2023
1
Konka Group Co., Ltd. Annual Report 2022
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Konka Group Co., Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the factuality, accuracy and completeness of the contents of
this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Zhou Bin, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Ping Heng, the head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Company has no final dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Konka Group Co., Ltd. Annual Report 2022
Table of Contents
Part I Important Notes, Table of Contents and Definitions........................................................... 2
Part II Corporate Information and Key Financial Information................................................... 9
Part III Management Discussion and Analysis..............................................................................13
Part IV Corporate Governance.......................................................................................................38
Part V Environmental and Social Responsibility.......................................................................... 62
Part VI Significant Events............................................................................................................... 73
Part VII Share Changes and Shareholder Information................................................................96
Part VIII Preferred Shares............................................................................................................ 102
Part IX Corporate Bonds...............................................................................................................103
Part X Financial Statements..........................................................................................................109
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Konka Group Co., Ltd. Annual Report 2022
Documents Available for Reference
1. The financial statements with the signatures and seals of the Company’s legal representative,
Chief Financial Officer and head of the financial department;
2. The original copy of the Independent Auditor’s Report with the seal of the CPA firm and the
signatures & seals of the certified public accountants;
3. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period;
4. This Report and its summary with the signature of the Company’s legal representative and the
seal of the Company; and
5. Other relevant materials.
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Konka Group Co., Ltd. Annual Report 2022
Definitions
Term Definition
The “Company”, the “Group”, “Konka Group” or Konka Group Co., Ltd. and its consolidated subsidiaries, except where the
“we” context otherwise requires
Electronics Technology Shenzhen Konka Electronics Technology Co., Ltd.
Anhui Zhilian Anhui Konka Zhilian E-Commerce Co., Ltd.
Haimen Konka Haimen Konka Smart Technology Co., Ltd.
Chengdu Konka Smart Chengdu Konka Smart Technology Co., Ltd.
Chengdu Konka Electronic Chengdu Konka Electronic Co., Ltd.
Nantong Hongdin Nantong Hongdin Smart Technology Co., Ltd.
Youzhihui Shenzhen Youzhihui Technology Co., Ltd.
Xiaojia Technology Xiaojia Technology Co., Ltd.
Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co., Ltd.
Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co., Ltd.
Nanjing Konka Nanjing Konka Electronics Co., Ltd.
Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co., Ltd.
Xi'an Huasheng Xi'an Huasheng Jiacheng Real Estate Co., Ltd.
XingDa HongYe GuangDong XingDa HongYe Electronic Co., Ltd.
Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB Co., Ltd.
Konka Circuit Shenzhen Konka Circuit Co., Ltd.
Konka Flexible Electronic Suining Konka Flexible Electronic Technology Co., Ltd.
Konka Hongye Electronics Suining Konka Hongye Electronics Co., Ltd.
Boluo Precision Boluo Konka Precision Technology Co., Ltd.
Boluo Konka Boluo Konka PCB Co., Ltd.
Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co., Ltd.
Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co., Ltd.
Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co., Ltd.
Frestec Refrigeration Henan Frestec Refrigeration Appliance Co., Ltd.
Frestec Electrical Appliances Henan Frestec Electrical Appliances Co., Ltd.
Frestec Household Appliances Henan Frestec Household Appliances Co., Ltd.
Frestec Smart Home Henan Frestec Smart Home Technology Co., Ltd.
Konka Investment Shenzhen Konka Investment Holdings Co., Ltd.
Yibin Konka Technology Park Yibin Konka Technology Park Operation Co., Ltd.
Konka Capital Shenzhen Konka Capital Equity Investment Management Co., Ltd.
Konka Suiyong Konka Suiyong Investment (Shenzhen) Co., Ltd.
Shengxing Industrial Shenzhen Konka Shengxing Industrial Co., Ltd.
Zhitong Technology Shenzhen Konka Zhitong Technology Co., Ltd.
Konka Factoring Konka Factoring (Shenzhen) Co., Ltd.
Beijing Konka Electronic Beijing Konka Electronic Co., Ltd.
Konka Leasing Konka Financial Leasing (Tianjin) Co., Ltd.
Suining Konka Industrial Park Suining Konka Industrial Park Development Co., Ltd.
Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co., Ltd.
Shanghai Konka Shanghai Konka Industrial Co., Ltd.
Yantai Kangjin Yantai Kangjin Technology Development Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2022
Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co., Ltd.
Sichuan Konka Sichuan Konka Smart Terminal Technology Co., Ltd
Yibin Smart Yibin Konka Smart Technology Co., Ltd.
Shenzhen KONSEMI Shenzhen KONSEMI Co., Ltd.
Chongqing Konka Chongqing Konka Technology Development Co., Ltd.
Hefei KONSEMI Hefei KONSEMI Storage Technology Co., Ltd.
Yihe Electronic Hefei Yihe Electronic Co., Ltd.
Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co., Limited
Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co., Limited
Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd.
Industrial and Trade Technology Konka Industrial and Trade Technology (Shenzhen) Co., Ltd.
Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co., Ltd.
Konka Huazhong Konka Huazhong (Hunan) Technology Co., Ltd.
Wankaida Shenzhen Wankaida Science and Technology Co., Ltd.
Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Suining Jiarun Property Suining Jiarun Property Co., Ltd.
Anhui Konka Anhui Konka Electronic Co., Ltd.
Kangzhi Trade Anhui Kangzhi Trade Co., Ltd.
Telecommunication Technology Shenzhen Konka Telecommunications Technology Co., Ltd.
Konka Mobility Konka Mobility Co., Limited
Dongguan Konka Dongguan Konka Electronic Co., Ltd.
Suining Konka Smart Suining Konka Smart Technology Co., Ltd.
Chongqing Optoelectronic Technology Research
Chongqing Konka Optoelectronic Technology Research Institute Co., Ltd.
Institute
Yibin Kangrun Yibin Kangrun Environmental Technology Co., Ltd.
Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd.
Yibin Kangrun Environmental Protection Yibin Kangrun Environmental Protection Power Generation Co., Ltd.
Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co., Ltd.
Jiangxi Konka Jiangxi Konka New Material Technology Co., Ltd.
Jiangxi High Transparent Substrate Jiangxi High Transparent Substrate Material Technology Co., Ltd.
Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co., Ltd.
Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co., Ltd.
Konka Huanjia Konka Huanjia Environmental Technology Co., Ltd.
Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co., Ltd.
Shaanxi Konka Intelligent Shaanxi Konka Intelligent Appliance Co., Ltd.
Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co., Ltd.
Jiaxin Technology Jiaxin Technology Co., Ltd.
Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd.
Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co., Ltd.
Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd.
Konka Unifortune Shenzhen Konka Unifortune Technology Co., Ltd.
Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co., Ltd.
Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co., Ltd.
Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co., Ltd.
Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd.
Yantai Laikang Yantai Laikang Industrial Development Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2022
Konka Material Hainan Konka Material Technology Co., Ltd.
Konka Ventures Konka Ventures Development (Shenzhen) Co., Ltd.
Yibin Konka Incubator Yibin Konka Incubator Management Co., Ltd.
Yantai Konka Yantai Konka Healthcare Enterprise Service Co., Ltd.
Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co., Ltd.
Konka Enterprise Service Guiyang Konka Enterprise Service Co., Ltd.
Konka Eco-Development Shenzhen Konka Eco-Development Investment Co., Ltd.
Konka Europe Konka (Europe) Co., Ltd.
Hong Kong Konka Hong Kong Konka Limited
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
Kanghao Technology Kanghao Technology Co., Ltd.
Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co., Limited
Chain Kingdom Memory Technologies
Chain Kingdom Memory Technologies (Shenzhen) Co., Limited
(Shenzhen)
Hongjet Hongjet (Hong Kong) Company Limited
Xi'an Feihe Xi'an Feihe Real Estate Development Co., Ltd.
Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co., Ltd.
Jiangxi Konka Industrial Park Jiangxi Konka Industrial Park Development Co. Ltd.
Ruichang Kangrui Real Estate Ruichang Kangrui Real Estate Co., Ltd.
Industrial development in Wuhan Konka Industrial Development (Wuhan) Co., Ltd.
Kangxiaojia Digital Shenzhen Kangxiaojia Digital Information Technology Co., Ltd.
Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Yijiakang Smart Terminal Shenzhen Yijiakang Smart Terminal Technology Co., Ltd.
Guizhou Kangkai Material Technology Guizhou Kangkai Material Technology Co., Ltd.
Guizhou Konka New Material Technology Guizhou Konka New Material Technology Co., Ltd.
Guizhou Kanggui Energy Guizhou Kanggui Energy Co., Ltd.
Guangdong Xinwei Guangdong Xinwei Semiconductor Co., Ltd.
Kangxinrun Renewable Resources Chongqing Kangxingrui Renewable Resources Co., Ltd.
Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co., Ltd.
Sichun Chengrui Sichuan Chengrui Real Estate Co., Ltd.
Chongqing Jiarun Chongqing Jiarun Real Estate Co., Ltd.
Nantong Kanghai Nantong Kanghai Technology Industry Development Co., Ltd.
Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co., Ltd.
Jiangxi Konka High-tech Park Jiangxi Konka High-tech Park Operation and Management Co., Ltd.
Shangrao Konka Electronic Technology
Shangrao Konka Electronic Technology Innovation Co., Ltd.
Innovation
Guizhou Konka New Energy Guizhou Konka New Energy Material Technology Co., Ltd.
Zhejiang Konka Electronic Zhejiang Konka Electronic Technology Co., Ltd.
Zhejiang Konka Technology Industry Zhejiang Konka Technology Industry Development Co., Ltd.
Sichuan Hongxinchen Sichuan Hongxinchen Real Estate Development Co., Ltd.
Xi'an Konka Intelligent Xi'an Konka Intelligent Appliance Co., Ltd.
Xi'an Konka Network Xi'an Konka Network Technology Co., Ltd.
Xi'an Kanghong Technology Industry Xi'an Kanghong Technology Industry Development Co., Ltd.
Xi'an Konka Intelligent Technology Xi'an Konka Intelligent Technology Development Co., Ltd.
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Konka Group Co., Ltd. Annual Report 2022
Chongqing Fangbing Real Estate Chongqing Fangbing Real Estate Co., Ltd.
Chongqing Konka Low Carbon Chongqing Konka Low Carbon Technology Co., Ltd.
Kanghong Xintong Shenzhen Kanghong Xintong Investment Partnership (Limited Partnership)
Songyang Industry Operation Songyang Konka Smart Industry Operation Management Co., Ltd.
Kangyan Technology Shenzhen Kangyan Technology Co., Ltd.
Konka Photovoltaic Technology Konka Photovoltaic Technology Co., Ltd.
Songyang Konka Intelligent Songyang Konka Intelligent Technology Development Co., Ltd.
Konka North China Konka North China (Tianjin) Technology Co., Ltd.
Zhongshan Kanghong Zhongshan Kanghong Electronic Technology Co., Ltd.
Digital Technology Shenzhen Konka Digital Technology Development Co., Ltd.
CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission
Expressed in the Chinese currency of RMB, expressed in tens of thousands of
RMB, RMB’0,000, RMB’00,000,000
RMB, expressed in hundreds of millions of RMB
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Konka Group Co., Ltd. Annual Report 2022
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
Previous stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbr. 康佳集团
Company name in English (if any) KONKA GROUP CO.,LTD
Abbr. (if any) KONKA GROUP
Legal representative Zhou Bin
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Registered address
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
On 1 July 2015, due to the relocation of the Company Headquarters, the registered
address has changed from OCT, Nanshan District, Shenzhen, Guangdong Province, China
Past changes of registered address
to 15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology
Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China.
15-24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science and Technology Park,
Office address
Yuehai Street, Nanshan District, Shenzhen, Guangdong Province, China
Zip code 518057
Company website www.konka.com
Email address szkonka@konka.com
II Contact Information
Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, 28 Board Secretariat, 24/F, Konka R&D Center, 28
Keji South Twelfth Road, Science and Technology Keji South Twelfth Road, Science and Technology
Address
Park, Yuehai Street, Nanshan District, Shenzhen, Park, Yuehai Street, Nanshan District, Shenzhen,
Guangdong Province, China Guangdong Province, China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
Email address szkonka@konka.com szkonka@konka.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this
Securities Times, etc.
Report is disclosed
Media and website where this Report is
http://www.cninfo.com.cn/new/index
disclosed
Board Secretariat, 24/F, Konka R&D Center, 28 Keji South Twelfth Road, Science
Place where this Report is lodged and Technology Park, Yuehai Street, Nanshan District, Shenzhen, Guangdong
Province, China
IV Change to Company Registered Information
Unified social credit code 914403006188155783
Change to principal activity of the Company
No change
since going public (if any)
Every change of controlling shareholder since
No change
incorporation (if any)
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Konka Group Co., Ltd. Annual Report 2022
V Other Information
The independent audit firm hired by the Company:
Name Shinewing Certified Public Accountants LLP
9/F, Block A, Fuhua Mansion, No.8 Chaoyangmen North Street, Dongcheng District,
Office address
Beijing, China
Accountants writing signatures Tang Qimei and Liu Lihong
The independent sponsor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ Not applicable
2022-over-
2022 2021 2021 change 2020
(%)
Operating revenue (RMB) 29,607,854,255.27 49,106,513,669.58 -39.71% 50,351,836,554.87
Net profit attributable to the listed
-1,471,409,748.21 905,352,997.68 -262.52% 477,633,250.14
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -2,665,550,383.07 -3,250,798,107.49 18.00% -2,367,590,806.95
exceptional gains and losses (RMB)
Net cash generated from/used in
-528,303,041.83 808,756,394.11 -165.32% 178,616,528.21
operating activities (RMB)
Basic earnings per share (RMB/share) -0.6111 0.3760 -262.53% 0.1984
Diluted earnings per share (RMB/share) -0.6111 0.3760 -262.53% 0.1984
Weighted average return on equity (%) -17.58% 10.33% -27.91% 5.79%
Change of
31
December
31 December 2022 31 December 2021 2022 over 31 December 2020
31
December
2021 (%)
Total assets (RMB) 38,016,368,073.05 39,874,520,771.26 -4.66% 49,876,267,493.61
Equity attributable to the listed
7,640,399,721.99 9,095,278,436.41 -16.00% 8,428,640,176.97
company’s shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative for the last three
accounting years, and the latest independent auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern.
□ Yes √ No
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Konka Group Co., Ltd. Annual Report 2022
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative.
√ Yes □ No
Item 2022 2021 Note
Operating revenue (RMB) 29,607,854,255.27 49,106,513,669.58
Scrap sales revenue, utilities revenue, lease
Deductions from operating
823,347,409.73 579,266,272.20 revenue, material sales revenue and other
revenue (RMB)
revenue irrelevant to the principal operations
Operating revenue net of
28,784,506,845.54 48,527,247,397.38
deductions (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 8,320,135,785.93 8,575,334,490.88 7,700,546,365.26 5,011,837,613.20
Net profit attributable
to the listed company’s 103,900,130.02 68,918,308.81 -37,227,714.31 -1,607,000,472.73
shareholders
Net profit attributable
to the listed company’s
shareholders before -418,548,047.01 -323,808,134.70 -335,657,322.29 -1,587,536,879.07
exceptional gains and
losses
Net cash generated
from/used in operating -630,928,798.94 209,669,292.21 353,663,155.55 -460,706,690.65
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or
interim reports.
□ Yes √ No
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Konka Group Co., Ltd. Annual Report 2022
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2022 2021 2020 Note
Gain or loss on disposal of non-current assets
(inclusive of impairment allowance write- 755,498,679.55 4,047,094,117.70 2,431,648,255.26
offs)
Government subsidies charged to current
profit or loss (exclusive of government
subsidies consistently given in the
916,334,616.72 1,352,377,548.16 908,546,202.24
Company’s ordinary course of business at
fixed quotas or amounts as per governmental
policies or standards)
Gain or loss on assets entrusted to other
18,476,648.12
entities for investment or management
Gain or loss on debt restructuring -5,378,929.04 19,777.25 1,127,066.94
Gain or loss on fair-value changes in held-
for-trading financial assets and liabilities &
income from disposal of held-for-trading
financial assets and liabilities and available- -17,595,638.89 67,789,442.65 96,316,772.78
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 tested individually 32,624,581.58
for impairment
Gain or loss on loan entrustments 119,233,091.33 80,625,356.41 64,616,181.90
Non-operating income and expense other
-97,161,898.46 48,615,769.37 54,271,037.60
than the above
Other gains and losses that meet the
-1,907,936.23 1,081,111.64
definition of exceptional gain/loss
Less: Income tax effects 299,999,504.47 1,190,629,946.56 544,211,364.67
Non-controlling interests effects (net of tax) 209,414,363.46 247,833,023.58 186,647,854.72
Total 1,194,140,634.86 4,156,151,105.17 2,845,224,057.09 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
Tax rebates Government subsidies given in the Company’s ordinary course of business at fixed
12,377,884.09
on software quotas or amounts as per government’s uniform standards
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Konka Group Co., Ltd. Annual Report 2022
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
At present, the core businesses of the Company include consumer electronics, industry trade,
semiconductors, environmental protection, etc. Among them, for the industry trade business, the
Company carries out the procurement, processing and distribution of related materials around the
upstream and downstream of the consumer electronics business, thus it can be categorized to the
consumer electronics industry or semiconductor business. Therefore, the industries in which the
Company operates during the Reporting Period are consumer electronics industry, semiconductor
industry and environmental protection industry. The relevant information is as follows:
(I) Consumer electronics industry
In the color TV industry, China’s color TV industry has entered the “stock” market in recent years.
Affected by factors such as industry cycles, geopolitical conflicts, high commodity prices as well as
insufficient consumption demand, the sales volume of the color TV industry dropped by 5.6% year-
on-year (YoY) in the world in 2022; meanwhile, as the Internet has provided accessible channels of
distribution, the Internet brands competed on their low price with other industries. Consequently,
the increasingly fierce price competition made their products less profitable. According to statistics
from All View Cloud (AVC for short), the retail sales volume in China’s color TV market in 2022
was 36,345,000 units, down by 5.2% YoY, and the retail sales volume was RMB112.3 billion,
declining by 12.9% YoY. In the future, as display technologies progress and as technologies such as
Internet of Things (IoT), big data, cloud computing, artificial intelligence etc. promote the upgrade
of the intelligentialization of various electronic products, as well as the iterative update of future
display technologies represented by Mini LED, Micro LED, new categories of TV have developed
rapidly. Moreover, the country has also taken active measures to drive forward household appliance
industry. For example, in June 2022, National Radio and Television Administration published the
Opinions on Accelerating the Development of High-definition and Ultra-high-definition Televisions
with an aim to promote ultra-high-definition televisions; in December 2022, the Outline of the
Strategic Plan for Expanding Domestic Demand (2022-2035) issued by the CPC Central Committee
and the State Council includes the stated goal of developing digital home by increasing the
spending of home decoration and intelligent household appliances; the 2020 Central Economic
Work Conference put “boosting domestic demand” first, and stressed that it is required to take
“recovering and increasing consumption” as a priority, and that as an important part of consumption,
spending on household appliances holds the key to expand domestic demand. Therefore, driven by
policy, technology and other factors, the scale of the color TV industry is expected to grow. And at
the same time, with higher TV parameter configuration and richer intelligent functions, more and
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Konka Group Co., Ltd. Annual Report 2022
more segmented scenes will be covered.
On the side of white goods industry, at present, the inventory of white goods in urban households in
China is basically saturated. And affected by the industry cycle, changes in supply chains as well as
depressing demand, the scale of the white goods industry has decreased in 2022. In the refrigerator
industry, the retail sales volume in China’s refrigerator market in 2022 was 30.06 million units,
decreasing by 5.7% YoY, and the retail sales value was RMB93 billion, down by 4.2% YoY. As
people are paying more attention to health, food preservation, the future refrigerator market will be
mainly characterized by product upgrades. In respect of the washing machine industry, statistics
from AVC showed that the retail sales volume in China’s washing machine market in 2022 was
37.71 million units, decreasing by 9% YoY, and the retail sales value was RMB68.6 billion,
decreasing by 10.4% YoY. With a growing demand for the energy conservation, environmental
protection, intelligence and health security of products, the upgrading of product technology will be
the future trend in the washing machine industry. In terms of the air-conditioning industry, statistics
from AVC showed that the retail sales volume of China’s air-conditioning market was 57.14 million
units in 2021, decreasing by 3.3% YoY, and the retail sales value was RMB 196.9 billion, up by
0.4% YoY. As the need for replacement at the consumer side recovers, the air-conditioning industry
is expected to maintain a steady growth trend in the future.
(II) Semiconductor industry
The semiconductor industry is a strategic, fundamental and leading industry that supports economic
and social development and safeguards national security. Driven by the development of 5G,
artificial intelligence, the IoT, and intelligentialization, the semiconductor industry is expected to
usher in a new wave of growth cycles. Among them, semiconductor storage is the largest
subdivision in the semiconductor industry in recent years. At present, South Korean companies
represented by Samsung and Hynix are in the leading position in the field of semiconductor storage.
China has also accelerated in boosting the production capacity of semiconductor storage in recent
years. It is expected that the self-sufficiency rate will continue to increase.
Micro LED is the prevailing trend and development direction of future display technology. The
industrial chain is divided into four main links: upstream chip manufacturing and mass transfer,
midstream panel manufacturing, and downstream complete machine application. The Micro LED
has wide industrial application and a broad market.
(III) Environmental protection industry
With the introduction of a series of favorable policies to encourage the recycling and utilization of
renewable resources and the continuous enhancement of environmental protection supervision, the
total amount and the total value of recycled resources in China have shown rapid growth. It is
expected that the industry will continue to develop to a good prospect in the future, and the
development scale of the renewable resource recycling industry will continue to grow steadily.
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Konka Group Co., Ltd. Annual Report 2022
II Principal Activity of the Company in the Reporting Period
(I) The consumer electronics business
This division primarily comprises the multimedia sub-division and the white goods sub-division,
with details as follows:
1. The multimedia business
The Company's multimedia business faces the global market, mainly including domestic color TV
business and export color TV business.
The domestic sales of the Company’s colour TVs are realized mainly through B2B (Business-to-
Business) and B2C (Business-to-Consumer), with its branch companies, business departments
and after-sales maintenance points operating across the country. And the Company profits from
the margins between the costs and the selling prices of its colour TVs.
As for selling its colour TVs abroad, the Company mainly relies on B2B. Its colour TVs are sold
to Asia Pacific, Middle East, Central & South America, East Europe, etc. And operating profit
source is also the differences between the costs and the selling prices of its colour TVs.
2. The white goods business
The white goods produced by the Company mainly include refrigerators, washing machines, air
conditioners, freezers, etc., which are sold through B2B and B2C mainly to the domestic market.
And the Company profits from the margins between the costs and the selling prices of its white
goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. Meanwhile, the establishment of the Ningbo A/C production base as a joint
venture has helped the Company build its own A/C manufacturing capability. The weakness in the
front-loading washing machine technology has been overcome by the acquisition of Beko (Front-
loading Washing Machine) China Factory. In addition, the Company went on a new path of
exploring the dishwasher world by setting up Xi’an Smart Appliances Park. The Company also
optimized the internal R&D, production, procurement, sales, and services processes, integrated the
external channel resources to enable channel sharing between the upstream procurement processes
and downstream sales processes, and improved the product sales structure and competitiveness of
the white goods business.
(II) The industry trade business
The Company's industry trade business mainly focuses on the procurement, processing and
distribution of IC chip storage, LCD and other materials involved in the company's traditional main
business. The operating profit comes from the processing fee and the price difference between
upstream procurement and downstream sales. The industry trade business can help the Company
establish good relationships with its upstream suppliers and downstream customers, and keep it
informed of prices of the materials used in its production for better cost control over its existing
products. Additionally, it is able to facilitate the development of the semiconductor business by
15
Konka Group Co., Ltd. Annual Report 2022
helping accumulate customer resources for the semiconductor and chip business, provide sales
channels, and achieve accurate matching of market demand, with a shortened product development
period and a lower risk of mismatching of R&D and market demand.
(III) The environmental protection business
Currently, this business focuses on recycling of renewable resources. Renewable resources are
collected, sorted, processed, distributed and sold.
(IV) The semiconductor business
Currently, the Company is engaged in storage, optoelectronics, etc. with respect to the semi-
conductor business. In storage, the Company primarily engages in packaging and testing of storage
products. In optoelectronics, the Company primarily develops Micro LED-related products.
III Core Competitiveness Analysis
The Company’s core competitiveness lies in its R&D ability, brand, marketing network and human
resources. It has developed a three-tier R&D system of “Research institute+key labs+product
development centers”, established artificial intelligence internet of things comprehensive laboratory
and 5G Ultra HD laboratory with major universities or scientific research institutions, established
academician workstation, and built a technology research alliance matching the industrial layout,
with nearly 100 core technologies and about 1,500 R&D talents. The Company has introduced
around 100 experts on the micro LED project. In terms of brand, the Company continues to
promote brand strategy construction, system construction, image construction and cultural
construction, focuses on improving the scientific and international image of the enterprise,
strengthens the brand status, has a certain brand awareness and reputation in the consumer group,
and has good brand credit in banks and other financing channels. In terms of marketing channels,
the Company innovates channel reform, cooperates online and offline for win-win results, and
strives for development at home and abroad. Regarding offline channels, the Company has 25
branches, more than 100 offices, and more than 3,000 after-sales service shops across China, and
the marketing and service network is all over the country; as for online channels, the Company has
settled in Tmall, JD, Suning, VIPshop and other mainstream e-commerce platforms to innovate and
develop live e-commerce business, and seek a new growth pole for business development; overseas
channel, the company The Company's business covers Latin America, Europe, Asia Pacific and
other countries and regions, with a sound marketing network. In terms of human resources, the
Company boasts a leadership team of many years of management and industry experience, as well
as a high quality execution team.
16
Konka Group Co., Ltd. Annual Report 2022
IV Core Business Analysis
1. Overview
In 2022, in the complicated context of the economic downturn, decline in consumption, supply
chain interruptions as well as the adjustment of macro policy, the Company took lean management
as its guiding principle, focused on main business development, and adhered to the three major
business segments of “Consumer Electronics + Semiconductor + New Energy Technology”. It
further advanced the upgrading of its business structure, took effective measures to lower costs and
increase efficiency, control and reduce expenditure, and strengthened scientific and technological
innovation as well as professional capacity building. But for the following reasons, the Company
recorded a year-on-year decline in operating revenue and a significant loss in 2022.
(1) The main causes of a year-on-year decline in operating revenue in 2022
① Among export products in the Company’s main business, memory semiconductor products
account for a large share. According to the preliminary statistical results from third-party research
institutions, the global sales volume of memory semiconductors decreased by 10.4% YoY or so. In
order to reduce operating risks, the Company adjusted and reduced the business scale of this part,
resulting in a significant decline in the sales scale of products including memory chips in the
industrial and trading business compared to 2021.
② In 2022, the statistics from third-party research institutions revealed that due to the weak demand
and consumption, the scale of domestic industries related to the consumer electronics business of
the Company dropped by about 10% YoY. The Company reduced by 21.63% in terms of the scale
of consumer electronics business compared with 2021.
③ In 2022, the Company focused on its main business, remained committed to the tree major
business segments of “Consumer Electronics + Semiconductor + New Energy Technology”, and
promoted business restructuring by optimizing part of non-core business which failed to coordinate
with the main business.
④ The Company removed Shandong Econ Technology Co., Ltd. and Shenzhen E2info Network
Technology Co., Ltd. from the balance sheet through introducing strategic investors at the end of
2021. And it did not consolidate the operating revenue of the above-mentioned two companies in
2022.
2. The main causes of a significant loss in 2022
① In 2022, as the scale of consumer electronics business reduced, it suffered a significant decline in
its gross margin and a loss as well, due to the volatility of raw material prices, fierce competition
among companies, low average retail prices of consumer electronics products and rising shipping
cost.
② In 2022, the Company continued to invest in the research and development of semiconductor
17
Konka Group Co., Ltd. Annual Report 2022
business, but as it was still in the stage of small-lot production, it failed to achieve corresponding
revenue and profit in 2022, which affected the Company’s performance in its overall earnings.
③ In 2022, in order to stimulate the assets and further focus on main business, the Company
stripped off assets that did not work for the development of main business and the expansion of
supply chains. Under the prudence principle, the Company set aside impairment provision of
RMB1.245 billion for certain assets such as accounts receivable and inventory that may be subject
to credit and asset impairment, causing a decrease in earnings.
④ Under the influence of macroeconomic environment, the Company reduced the business of
industrial parks and investment, which caused a huge decline in relevant revenue. In 2021, the
Company saw RMB4,047 million of gains on disposal of non-current assets as it disposed of some
equity of subsidiary enterprises. The gains/losses from the disposal of non-current assets were
RMB755 million in 2022, down by 81.33% YoY.
For 2022, the Company recorded operating revenue of RMB29.608 billion, down 39.71% year on
year. Net profit attributable to the Shareholders of listed companies at RMB-1.471 billion,
representing a year-on-year drop of 262.52%.
3. Key operations during 2022
① Significant improvement of management
First, lean management achieved notable achievements: In 2022, the Company worked to promote
lean management and value creation, focused on increased quality, efficiency and self-promotion,
and implemented precise quantification, standardization, inventory program and digitization. The
Company made impressive gains in improving lean management by reducing costs and controlling
expenditure, reclaiming receivables and stripping off subsidiary enterprises that suffered losses and
did not fit in with the company’s development strategies.
Second, the capacity of digital management notably strengthened: In 2022, the Company carried out
many digital projects including In Cloud and Lake project, financial sharing project, contract
management project, standardized financial accounting project, intelligent manufacturing MES of
white goods (digital factory) project, supplier management and engineering bidding projects. All of
these improved the Company’s digital management.
Third, risk management achieved great results: In 2022, the Company established “project,
standardized” risk management systems and achieved lean risk management through three risk
control line of defense, three-class management mechanism and three stages of supervision.
Meanwhile, the Company set up well-established compliance systems through organization
construction, system norms, list guideline and personnel allocation.
② Continuous optimization of industrial structure
First, promoting integrated high-quality development. In 2022, the Company stayed committed to
electronics technology as its main business, put forward integrated high-quality development, and
18
Konka Group Co., Ltd. Annual Report 2022
made clear three major business segments of “Consumer Electronics + Semiconductor + New
Energy Technology” and the two supporting businesses of “Industrial Parks + Investment”, which
highlighted the core position of main business. Moreover, it worked to optimize business structure.
Second, upgrading consumer electronics business structure. In 2022, the white goods business of
the Company achieved growth in income scale through increasing investment in the white goods,
promoting “Konka + Frestec” dual-brand operation and “refrigerators + washing machines +
freezers + air conditioners + kitchen appliance” full-category layout. And the Konka Industrial Park
in Shaanxi entered the stage of mass production.
③ Advancement of expertise
First, manufacturing capacity has moved forward in the direction of professionalism. In terms of the
color TV industry, in 2022, the Company has worked to improve its intelligent manufacturing
capacity. For instance, industrial Internet of Things (IIOT) platform of Ankang Green Smart Plant
passed acceptance inspection and its productivity has met industrial standard. Thus, the plant won
the title of “National Green Smart factory”. In white goods industry, the company built
“refrigerators + washing machines + freezers + air conditioners + kitchen appliance” full-category
manufacturing capacity. On the side of semiconductors, the company launched some industrial
projects such as mass production line of MLED direct display and MLED chip, and put into
production Yancheng Memory Semiconductor Assembly & Test Base, the yield of which surpassed
99.95%.
Second, investment business has been developed in the direction of professionalism. In 2022, the
expertise of full chain of “fundraising, investment, management and withdrawal” in investment sub-
division of the Company has greatly improved.
Third, further improved professional capacity of operating industrial parks. In 2022, the Company
has consolidated its capacity of operating the industrial park business and also developed a
“government-commissioned and enterprise-operating” asset-light strategy and other business
models, which has pushed for the completion of the projects.
④ Notable improvement of product capability
First, the industrialization of semiconductor technology. On the side of O-E semiconductors,
Chongqing Konka Semiconductor Optoelectronic Technology Industrial Park was put into
production. The self-developed 15um*30um Micro LED chip reached 99% of the manufacturing
yield. Besides, it launched industrial projects including the mass production line project of MLED
direct display. In terms of PCB sub-division, the Company developed Mini LED direct display. The
revenue of thick copper and communication products saw a year-on-year increase. And the product
sales structure has improved.
Second, consumer electronic quality products played an important role. The overseas color TV
business launched a series of high-margin differentiated quality products to optimize its product mix.
19
Konka Group Co., Ltd. Annual Report 2022
In terms of the white goods sub-division, the Company further explored product potential through
benchmarking, and promoted full-category products. It launched Konka 550 double-door
refrigerator and drum washing machine with H21 color screen and other new products. The
Company is engaged in 5G router and tablet products with respect to the mobile Internet sub-
division, and focused on international market, which significantly improved overseas business
revenue and gross margin.
⑤ Significant improvement of R&D capacity
In 2022, the Company remained committed to independent innovation as its technological
development guideline, and kept strengthening the three-tier R&D system of “research institute -
key laboratory - product R&D center” and increasing investment in areas including semiconductors,
big data, display technology and healthy fresh cold technology.
Among one national award and four provincial awards that the Company received in 2022, the
Parameter Separation Methods, Smart TV and Storage Media won Chinese Patent Award of
Excellence, the Key Technology of Intelligent Terminal Integrating Information Equipment and
Synergetic Interconnection of Beacon won the second prize of Guangdong Science and Technology
Progress Award, and the Control Methods for Temperature Rectification of Air-cooled Refrigerator
and the A Noise Control Method for Refrigerator Using Frequency Conversion Compressor won the
Science and Technology Achievement Award of Henan Province. Konka Double 15-day Ecological
Fresh-Keeping Refrigerator won the 2022 Ultra-Long Fresh-Keeping Leading Product Award of
China’s Refrigerator Industry.
In terms of core technology R&D, the Company made breakthrough in many key technologies in
2022. In the area of semiconductors, the Company independently developed Micro LED “hybrid
mass transfer technology” with a three-color transfer yield reaching 99.999%. In the white goods
industry, the Company carried out the basic applied research of the Development of Cryogenic
Refrigerator Based on Reverse Brayton Refrigeration Technology project. After the air-cooled -
86°C cryo-refrigerator for civil use was developed, the cooling temperature surpassed -120°C,
which opened up the market space of the Company’s ultra-low temperature refrigeration products in
such fields as medical treatment, military industry, scientific research and transportation.
Furthermore, the 15-day ecological fresh-keeping technology extended the fresh-keeping date of
food in the refrigerator through multi-field coupling technology.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2022 2021
As % of total As % of total Change (%)
Operating revenue Operating revenue
operating revenue (%) operating revenue (%)
20
Konka Group Co., Ltd. Annual Report 2022
Total 29,607,854,255.27 100% 49,106,513,669.58 100% -39.71%
By operating division
Consumer electronics 10,871,843,067.02 36.72% 13,873,074,181.46 28.25% -21.63%
Industry trade 16,052,517,705.95 54.22% 29,682,677,483.94 60.45% -45.92%
Environmental
1,548,557,255.52 5.23% 4,354,614,711.52 8.87% -64.44%
business
Semiconductor 134,579,890.70 0.45% 321,958,525.17 0.66% -58.20%
Other 1,000,356,336.08 3.38% 874,188,767.49 1.78% 14.43%
By product category
Color TVs 5,023,097,945.06 16.97% 7,300,340,878.11 14.87% -31.19%
White goods 3,929,504,730.97 13.27% 3,699,285,362.91 7.53% 6.22%
PCB 663,849,487.53 2.24% 913,703,904.09 1.86% -27.35%
Industry trade 16,052,517,705.95 54.22% 29,682,677,483.94 60.45% -45.92%
Environmental
1,548,557,255.52 5.23% 4,354,614,711.52 8.87% -64.44%
business
Semiconductor 134,579,890.70 0.45% 321,958,525.17 0.66% -58.20%
Other 2,255,747,239.54 7.62% 2,833,932,803.84 5.77% -20.40%
By operating segment
Domestic 14,845,908,414.38 50.14% 22,033,965,598.67 44.87% -32.62%
Overseas 14,761,945,840.89 49.86% 27,072,548,070.91 55.13% -45.47%
By marketing model
Direct sales 5,773,701,603.23 19.50% 8,947,974,287.40 18.22% -35.47%
Distribution 23,834,152,652.04 80.50% 40,158,539,382.18 81.78% -40.65%
(2) Operating Division, Product Category, Operating Segment or Marketing Model
Contributing over 10% of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Operating revenue Cost of sales operating revenue gross profit margin
margin cost of sales (%)
(%) (%)
By operating division
Consumer
10,871,843,067.02 10,466,658,063.15 3.73% -21.63% -18.48% -3.72%
electronics
Industry
16,052,517,705.95 15,948,127,861.17 0.65% -45.92% -45.97% 0.08%
trade
By product category
Color TVs 5,023,097,945.06 5,081,621,150.13 -1.17% -31.19% -26.59% -6.34%
White
3,929,504,730.97 3,523,413,567.24 10.33% 6.22% 3.77% 2.11%
goods
Industry
16,052,517,705.95 15,948,127,861.17 0.65% -45.92% -45.97% 0.08%
trade
By operating segment
Domestic 14,845,908,414.38 14,256,824,588.51 3.97% -32.62% -30.94% -2.33%
Overseas 14,761,945,840.89 14,531,813,805.37 1.56% -45.47% -45.69% 0.39%
By marketing model
Direct sales 5,773,701,603.23 5,538,012,338.93 4.08% -35.47% -31.87% -5.08%
Distribution 23,834,152,652.04 23,250,626,054.95 2.45% -40.65% -40.80% 0.25%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2022 2021 Change (%)
21
Konka Group Co., Ltd. Annual Report 2022
Unit sales 0,000 units 1,028 1,247 -17.56%
Consume
Output 0,000 units 983 1,184 -16.98%
Electronics
Inventory 0,000 units 73 79 -7.59%
Any over 30% YoY movements in the data above and why:
□ Applicable √ Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting
Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By product category
Unit: RMB
2022 2021
Product Change
Item As % of total cost of As % of total cost of
category Cost of sales Cost of sales (%)
sales (%) sales (%)
Color TVs Color TVs 5,081,621,150.13 17.65% 6,922,606,555.81 14.60% -26.59%
White
White goods 3,523,413,567.24 12.24% 3,395,382,780.50 7.16% 3.77%
goods
PCB PCB 627,609,981.96 2.18% 852,737,298.50 1.80% -26.40%
Industry Industry
15,948,127,861.17 55.40% 29,514,534,704.12 62.26% -45.97%
trade trade
Environment Environmen
1,511,874,387.74 5.25% 4,030,685,013.80 8.50% -62.49%
al business tal business
Semiconduct Semiconduc
148,687,958.92 0.52% 306,296,431.81 0.65% -51.46%
or tor
Other Other 1,947,303,486.72 6.76% 2,379,642,196.99 5.02% -18.17%
Note:
Cost of sales changed accordingly with operating revenue.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
Registered capital The Company’s Date of
Name of subsidiary Reason for change
(RMB) interest (%) change
Guizhou Konka New Energy Material
10,000 98.00% 2022-5-11
Technology Co., Ltd.
Jiangxi Konka High-tech Park Operation and
5,000 100.00% 2022-4-27
Management Co., Ltd.
Shangrao Konka Electronic Technology
3,000 100.00% 2022-4-27
Innovation Co., Ltd.
Zhejiang Konka Electronic Technology Co.,
3,000 100.00% 2022-6-20
Ltd.
Zhejiang Konka Technology Industry
3,000 100.00% 2022-6-20
Development Co., Ltd.
Xi'an Konka Intelligent Appliance Co., Ltd. 500 51.00% 2022-7-22 Newly incorporated
Xi'an Kanghong Technology Industry
3,000 100.00% 2022-8-1
Development Co., Ltd.
Xi'an Konka Network Technology Co., Ltd. 5,000 100.00% 2022-8-1
Xi'an Konka Intelligent Technology
5,000 100.00% 2022-8-1
Development Co., Ltd.
Chongqing Fangbing Real Estate Co., Ltd. 2,000 80.00% 2022-8-19
Konka Photovoltaic Technology Co., Ltd. 15,000 60.00% 2022-10-9
Zhongshan Kanghong Electronic Technology
100 51.00% 2022-10-14
Co., Ltd.
22
Konka Group Co., Ltd. Annual Report 2022
Songyang Konka Intelligent Technology
3,000 100.00% 2022-10-26
Development Co., Ltd.
Shenzhen Kangyan Technology Co., Ltd. 1,000 100.00% 2022-10-28
Songyang Konka Smart Industry Operation
1,500 51.00% 2022-10-26
Management Co., Ltd.
Konka North China (Tianjin) Technology Co.,
3,000 100.00% 2022-10-10
Ltd.
Shenzhen Kanghong Xintong Investment
10,000 95.09% 2022-10-21
Partnership (Limited Partnership)
Chongqing Konka Low Carbon Technology
1,500 55.00% 2022-9-30
Co., Ltd.
Jiangxi Konka Industrial Park Development
10,000 70.00% 2022-5-25
Co., Ltd.
Shanghai Xinfeng Zhuoqun PCB Co., Ltd. 1,066 100.00% 2022-2-10
Ruichang Kangrui Real Estate Co., Ltd. 1,000 70.00% 2022-5-25
Shenzhen Konka Electrical Appliances Co., De-registered
830 100.00% 2022-12-1
Ltd.
Yantai Laikang Industrial Development Co.,
1,000 51.00% 2022-8-4
Ltd.
Shenzhen Yijiakang Smart Terminal
2,000 100.00% 2022-12-9
Technology Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd. 2,500 49.00% 2022-4-15
Chongqing Jiarun Real Estate Co., Ltd. 2000 49.00% 2022-4-15
Xi'an Huasheng Jiacheng Real Estate Co., Ltd. 10,000 0.00% 2022-6-27
Equity transfer
Xi'an Feihe Real Estate Development Co., Ltd. 100 0.00% 2022-6-26
Konka Industrial Development (Wuhan) Co.,
1,000 45.00% 2022-2-25
Ltd.
Hefei KONSEMI Storage Technology Co.,
7,400 34.46% 2022-3-30
Ltd. Capital increase
Hefei Yihe Electronic Co., Ltd. 1,000 34.46% 2022-3-30
Sichuan Hongxinchen Real Estate
2,000 80.00% 2022-7-4
Development Co., Ltd.
Acquired
Shenzhen Konka Digital Technology
2,010 100.00% 2022-9-19
Development Co., Ltd.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting
Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 10,924,895,999.88
Total sales to top five customers as % of total sales of the
36.90%
Reporting Period (%)
Total sales to related parties among top five customers as % of
0
total sales of the Reporting Period (%)
Top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Customer A 5,236,236,676.89 17.69%
2 Customer B 1,878,790,089.83 6.35%
3 Customer C 1,600,421,458.45 5.41%
23
Konka Group Co., Ltd. Annual Report 2022
4 Customer D 1,336,927,199.96 4.52%
5 Customer E 872,520,574.75 2.93%
Total -- 10,924,895,999.88 36.90%
Other information about major customers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
Major suppliers:
Total purchases from top five suppliers (RMB) 11,332,913,608.06
Total purchases from top five suppliers as % of total purchases
39.35%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0
as % of total purchases of the Reporting Period (%)
Top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 5,446,347,101.69 18.91%
2 Supplier B 1,843,650,256.49 6.40%
3 Supplier C 1,480,847,503.61 5.14%
4 Supplier D 1,465,757,179.27 5.09%
5 Supplier E 1,096,311,567.00 3.81%
Total -- 11,332,913,608.06 39.35%
Other information about major suppliers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors, supervisors, executive officers, core technicians, over 5% shareholders, actual controller
or any other related parties held equity interests in the major customers, directly or indirectly.
3. Expense
Unit: RMB
Reason for any
2022 2021 Change (%)
significant change
Selling expense 1,240,144,735.77 1,428,062,895.37 -13.16%
Administrative expense 949,647,590.28 960,449,117.12 -1.12%
Great currency
Finance costs 522,423,743.18 952,642,273.75 -45.16%
fluctuations in the year
R&D expense 543,882,024.89 616,335,488.01 -11.76%
4. R&D Investments
√ Applicable □ Not applicable
Names of main Objectives to be Expected impact on the
Project objectives Project progress
R&D projects achieved Company
Through the new structure The target of
New Mini&Micro The project has Lay a solid foundation
design, the established goal of brightness increase,
LED Structure completed the given for the industrialization
photoelectric performance push-pull effort
Development project objectives of Mini&Micro LED
improvement and cost increase, and noble
Project and is thus closed. chip.
reduction can be achieved metal usage reduction
24
Konka Group Co., Ltd. Annual Report 2022
was finished.
Accumulate key
Mass Transfer Produce the samples,
The project has achievements of the
Repair Technology Improve the yield through and the yield could
completed the given mass transfer and make
Research and mass transfer repair achieve the goal
project objectives technical reserves for
Development technology. through using repair
and is thus closed. the industrialization of
Project technology.
this technology.
To complete the
accumulation of Realization of the core
differentiated capability of self-
To achieve its multi- technology such as developed multitasking
This project
Multi-window and directional differentiation in self-developed systems and
development has
Multitasking terms of the interaction, multitasking systems, accumulation of
been completed and
System -ME You multi-task, AI, ecological Android ecological technical reserves
applied in the
OS development, and put the connection, self-made allow them to act as a
company’s products.
product into use. air mouse remote core technology to
control and intelligent widen the gap between
splice screen through competing products.
technical cooperation.
It is designed to realize the
8K video slicing function by
using self-developed chips.
Convert one-channel
HDMI2.1 8K signal into four- These technologies can
Breakthrough chip
channel HDMI2.0 4K signals, be used in various 8K
technology including
in which HDMI2.1 input and The project has been large-screen display
HDMI2.1, 8K video
HDMI2.0 output interfaces completed and scenarios, including
8K 120Hz Video segmentation and
are realized by self-made gained customer “100 cities and 1,000
Processor multi-interface
chips, and then apply video orders in the screens” and the
synchronization and
splicing technology to video industry. Hangzhou Asian
output program
signal segmentation inside the Games and other
externally.
self-made chips, and use important occasions.
synchronization mechanism
to ensure that the four-
channel HDMI2.0 outputs are
completely synchronized.
Complete the research
and development of
This project relevant technologies
AM Driver (Active To complete AM-driven
development has including AM driver Enhance the quality
Matrix Driver) high-zone Mini LED
been completed and and high-zone Mini and competitiveness of
Mini LED backlight TV and launch
applied in A6 series LED backlight, and the product.
Backlight TV product
of models. improve the display
effect and reduce the
backlight costs.
Apply the reverse brayton
refrigeration technology to
the study of -120°C
Research of
cryorefrigerator to verify the To develop technical
Cryogenic The cryogenic
design parameters of key The cryogenic reserves for the market
Refrigerator Based technology has realized
components, low-temperature temperature has of cryogenic storage
on Reverse Brayton the temperature of -
material selection and surpassed -120°C. products in the field of
Refrigeration 120°C.
structure layout related to this biomedicine.
Technology
technology. The target
temperature in the cryogenic
box is to reach -120℃.
25
Konka Group Co., Ltd. Annual Report 2022
Details about R&D personnel:
2022 2021 Change (%)
Number of R&D personnel 1,537 1,505 2.13%
R&D personnel as % of total
10.59% 9.27% 1.32%
employees
Educational background of R&D personnel
Bachelor’s degree and below 1,398 1,344 4.02%
Master’s degree 131 151 -13.25%
Doctoral degree 8 10 -20.00%
Age structure of R&D personnel
Below 30 716 649 10.32%
30-40 573 607 -5.60%
Over 40 248 249 -0.40%
Details about R&D investments:
2022 2021 Change (%)
R&D investments (RMB) 543,882,024.89 633,205,798.71 -14.11%
R&D investments as % of operating
1.84% 1.29% 0.55%
revenue
Capitalized R&D investments (RMB) 0 16,870,310.70 -100.00%
Capitalized R&D investments as % of
0.00% 2.66% -2.66%
total R&D investments
Reason for any significant change in R&D personnel composition and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
√ Applicable □ Not applicable
No capitalization of R&D investments in the Reporting Period.
5. Cash Flows
Unit: RMB
Item 2022 2021 Change (%)
Subtotal of cash generated from
33,467,042,610.14 51,951,723,686.75 -35.58%
operating activities
Subtotal of cash used in
33,995,345,651.97 51,142,967,292.64 -33.53%
operating activities
Net cash generated from/used in
-528,303,041.83 808,756,394.11 -165.32%
operating activities
Subtotal of cash generated from
5,299,153,383.77 6,003,236,391.07 -11.73%
investing activities
Subtotal of cash used in investing
4,972,918,573.56 8,688,189,017.80 -42.76%
activities
Net cash generated from/used in
326,234,810.21 -2,684,952,626.73 112.15%
investing activities
Subtotal of cash generated from
21,373,734,199.02 24,829,208,403.38 -13.92%
financing activities
Subtotal of cash used in
21,706,022,136.76 21,264,351,013.39 2.08%
financing activities
Net cash generated from/used in
-332,287,937.74 3,564,857,389.99 -109.32%
financing activities
Net increase in cash and cash
-506,435,208.13 1,670,291,105.79 -130.32%
equivalents
Explanation of why any of the data above varies significantly:
26
Konka Group Co., Ltd. Annual Report 2022
√ Applicable □ Not applicable
Net cash generated from/used in operating activities changed primarily because with increased
inventories, cash payments for goods and services as a percentage of cash inflows from sales rose
year on year.
Net cash generated from/used in investing activities changed primarily because cash payments for
construction and acquisition of fixed assets, intangible assets and other long-term assets declined
year on year.
Net cash generated from/used in financing activities changed primarily because borrowings
declined year on year.
Reason for any big difference between the net operating cash flow and the net profit for this
Reporting Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Source/Reason Recurrent or not
Income from equity
Return on investment 936,006,397.44 -45.27% Not
transfers
Gain/loss on changes
-40,731,333.54 1.97% Not
in fair value
Allowances for
Asset impairments -1,245,280,871.86 60.23% Not
impairment losses
Non-operating income 125,139,042.00 -6.05% Not
Non-operating expense 224,724,245.84 -10.87% Not
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2022 1 January 2022 Reason
Change in for any
As % of total As % of total percentage signific
Amount Amount (%) ant
assets assets
change
Monetary
5,988,095,490.71 15.75% 6,489,553,211.24 16.27% -0.52%
assets
Accounts
2,036,734,836.22 5.36% 3,397,729,481.07 8.52% -3.16%
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 4,409,767,756.22 11.60% 4,068,537,809.18 10.20% 1.40%
Investment
802,407,844.60 2.11% 776,525,061.54 1.95% 0.16%
property
Long-term
equity 6,351,232,955.58 16.71% 5,902,588,939.51 14.80% 1.91%
investments
Fixed assets 4,114,029,693.38 10.82% 4,010,295,277.14 10.06% 0.76%
Construction in
1,990,361,377.07 5.24% 1,490,777,831.39 3.74% 1.50%
progress
Right-of-use
50,019,838.68 0.13% 71,210,415.37 0.18% -0.05%
assets
Short-term 7,579,559,304.97 19.94% 9,920,675,121.08 24.88% -4.94%
27
Konka Group Co., Ltd. Annual Report 2022
borrowings
Contract
601,044,358.35 1.58% 652,910,408.02 1.64% -0.06%
liabilities
Long-term
8,906,931,402.89 23.43% 3,529,140,539.09 8.85% 14.58%
borrowings
Lease liabilities 36,586,639.16 0.10% 42,532,869.63 0.11% -0.01%
Indicate whether overseas assets account for a larger proportion of the total assets.
□ Applicable √ Not applicable
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
Impairment
fair-value fair-value Purchased in Sold in the
Beginning allowance for Other Ending
Item changes in changes the Reporting Reporting
amount the Reporting changes amount
the Reporting charged to Period Period
Period
Period equity
Financial assets
1. Trading
financial
assets
(derivative
financial
assets
excluded)
2. Derivative
financial
assets
3.
Investments
in other debt
obligations
4.
Investments
in other 23,841,337.1 23,841,337.1
equity 6 6
instruments
Subtotal of
financial 23,841,337.1 23,841,337.1
assets 6 6
Investment
property
Productive
living assets
-
Other 2,364,852,29 986,428,145. 467,322,675. 2,876,849,50
7,108,260.65
2.22 86 67 1.76
Total of the -
2,388,693,62 986,428,145. 467,322,675. 2,900,690,83
above 7,108,260.65
9.38 86 67 8.92
Financial
0.00 0.00 0.00
liabilities
Particulars about other changes:
Impairment
Gain/loss on fair- Cumulative fair- Sold in the
Beginning allowance for Purchased in the Other
Item value changes in the value changes Reporting Ending amount
amount the Reporting Reporting Period changes
Reporting Period charged to equity Period
Period
Other non-current 395,831,987.1
2,293,361,603.68 -7,108,260.65 749,240,917.42 2,639,662,273.3
financial assets 3
2
Receivables financing 71,490,688.54 237,187,228.44 71,490,688.54 237,187,228.44
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
28
Konka Group Co., Ltd. Annual Report 2022
3. Restricted Asset Rights as at the Period-End
Ending carrying value
Item Reason for restriction
(RMB)
Of which, RMB435,167,024.52 is security deposits put in pledge for loans or the
issuance of bank acceptance bills; RMB305,405.41 is in the fiscal custody account;
Monetary assets 526,183,479.81
RMB69,800,000.00 is term deposits that cannot be withdrawn in advance; and
RMB20,911,049.88 is restricted for other reasons.
Notes receivable 504,958,051.41 In pledge for the issuance of bank acceptance bill
The rectification measures were affected by the minority shareholder case of the
Stock 49,679,547.48
subsidiary, the inventory was sealed up, and the company did not waive its claims.
Investment property 104,066,818.20 As collateral for loan
As collateral for the issuance of bank acceptance bill, finance lease, loan or former
Fixed assets 1,437,778,232.95
shareholder guarantee
Intangible assets 512,162,337.46 Mortgage loan, financial lease mortgage, original shareholder guarantee mortgage
Construction in
229,757,971.08 As collateral for finance lease
progress
Total 3,364,586,438.39
VII Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Amount of the same period of last year
Amount of Reporting Period (RMB) Change (%)
(RMB)
4,490,904,118.80 7,481,330,886.46 -39.97%
2. Major Equity Investments Made in the Reporting Period
□ Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Reason
Accumu Accumu for not
lative lative meeting
Fixed Input
actual Estimate realized the
Investm assets amount Capital Disclosu Disclosu
Industry input d revenue schedule
Item ent investm in the resource Progress re date re index
involved amount revenue s as of and
method ent or Reportin s (if any) (if any)
as of the s the expecte
not g Period
period- period- d
end end revenue
s
Donggu
an Self-
Konka Electron and
Self- 189,688, 544,486, 2017-
Intellige Yes ic bank N/A
build 317.71 076.49 03-11
nt industry loan-
Industri funded
al Park
Suining
Konka
Electron
Electron http://w
ic Self- Self- 2018-
Yes ic 149,933, 483,395, N/A ww.cnin
Technol build funded 10-17
industry 938.79 087.58 fo.com.c
ogy
n/new/in
Industri
dex
al Park
Chongqi
ng
Konka Self-
Semicon Electron and
Self- 219,883, 505,627, 2019-
ductor Yes ic bank N/A
build 550.18 350.19 06-14
Photoele industry loan-
ctric funded
Industri
al Park
29
Konka Group Co., Ltd. Annual Report 2022
Konka
Intellige
nt
Termina Electron
Self- 12,816,3 53,860,6 Self- 2020-
l Yes ic N/A
build 16.48 22.93 funded 06-06
Manufa industry
cturing
Base for
Export
Self-
Frestec
Electron and
Refriger Self- 138,495, 247,798, 2020-
Yes ic bank N/A
ation build 606.91 329.55 07-21
industry loan-
Park
funded
Xi’an
Konka
Smart
Electron
Applian Self- 38,146,1 179,661, Self- 2021-
Yes ic N/A
ces build 61.13 935.88 funded 02-10
industry
Headqu
arters
Project
748,963, 2,014,82
Total -- -- -- -- -- -- -- --
891.20 9,402.62
Note: Konka Chuzhou Smart Appliances and Equipment Industrial Park has been completed and
accepted. Xi’an Konka Smart Appliances Headquarters Project has been put into use. Dongguan
Konka Intelligent Industrial Park, Suining Konka Electronic Technology Industrial Park and Frestec
Refrigeration Park are under construction. Regarding the Semiconductor Photoelectric Research
Institute of Chongqing Konka Semiconductor Photoelectric Industrial Park, the infrastructure of the
first phase has been completed and accepted, with the remaining infrastructure and decoration
ongoing.
4. Financial Investments
(1) Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
√ Applicable □ Not applicable
(1) General Information about Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0,000
Cumulat
Re- ive re- Purpose
Amount
purpose Cumulat purpose and
Used in being
Total Cumulat d ive re- d whereab
Year of Way of the Unused idle for
amount ively amount purpose amount outs of
raising raising Current amount more
raised used in the d as % of the
Period than two
Reportin amount total unused
years
g Period amount amount
raised
Public
2022 120,000 120,000 120,000 0 0 0.00% 0 0 0
offering
30
Konka Group Co., Ltd. Annual Report 2022
of
corporat
e bonds
Private
placeme
2022 nt of 120,000 120,000 120,000 0 0 0.00% 0 0 0
corporat
e bonds
Total -- 240,000 240,000 240,000 0 0 0.00% 0 -- 0
More information
As of the date of this Report’s being authorized for issue, the raised funds have been used up. The Company used raised funds in
strict compliance with the stated purposes in the prospectus, and the special account for raised funds was running well.
(2) Promised Use of Raised Funds
□ Applicable √ Not applicable
(3) Re-purposed Raised Funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
√ Applicable □ Not applicable
Amoun
t Amoun
contrib t
uted by contrib
the uted by
equity the sale Relati
Executed
interest to net onship
as
Sellin s to net Effect income Relat betwe Owne
scheduled
g income of the of the Prici ed- en rship Discl
Equity or not, if Index to
Counte Date price of the sale on Compa ng party counte fully osur
interests not, state disclosed
rparty of sale (RM Compa the ny as a princi transa rparty transf e
sold reason information
B’0,0 ny Compa percent ple ction and erred date
and
00) from ny age of or not the or not
actions
period- the Comp
taken
beginni Compa any
ng to ny’s
date of net
sale income
(RMB’ (%)
0,000)
Optimi
Xi'an 100% zing
the
Port ownership Compa
Industri of Xi'an ny’s
27 allocati 21 http://www.c
al Huasheng 22,00 2,133.4 7.02% Valu
June 6 on of No No Yes N/A May ninfo.com.cn/
Invest Jiacheng 0 ation
assets,
2022 2022 new/index
ment Real increasi
ng
Co., Estate capital
Ltd. Co., Ltd. liquidit
y
IX Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10%
31
Konka Group Co., Ltd. Annual Report 2022
effect on the Company’s net profit
Unit: RMB
Relationship
Principal Registered Operating
Name with the Total assets Net assets Operating profit Net profit
activity capital revenue
Company
Enterprise
Konka Ventures
management
Development
Subsidiary consulting and RMB5,000,000 167,078,254.09 55,084,448.84 64,761,298.17 60,109,090.28 48,421,693.32
(Shenzhen) Co.,
incubation
Ltd.
services
Export &
Hong Kong 3,189,156,989.2
Subsidiary import of HKD500,000 397,775,661.07 2,667,415,017.4 52,240,252.69 34,803,560.21
Konka Co., Ltd. 8
electronics 0
Chain Kingdom
Export &
Memory USD4,876,255. 1,217,208,991.4
Subsidiary import of 157,310,605.80 8,493,960,721.2 4,129,016.07 4,124,270.93
Technologies 39 1
electronics 0
Co., Limited
Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and
Subsidiary
disposed in the Reporting Period operating performance
Guizhou Konka New Energy Material
Newly incorporated
Technology Co., Ltd.
Jiangxi Konka High-tech Park Operation and
Newly incorporated
Management Co., Ltd.
Shangrao Konka Electronic Technology
Newly incorporated
Innovation Co., Ltd.
Zhejiang Konka Electronic Technology Co.,
Newly incorporated
Ltd.
Zhejiang Konka Technology Industry
Newly incorporated
Development Co., Ltd.
Xi'an Konka Intelligent Appliance Co., Ltd. Newly incorporated
Xi'an Kanghong Technology Industry
Newly incorporated
Development Co., Ltd.
Xi'an Konka Network Technology Co., Ltd. Newly incorporated
Xi'an Konka Intelligent Technology
Newly incorporated
Development Co., Ltd.
Chongqing Fangbing Real Estate Co., Ltd. Newly incorporated
Beneficial to the development of the
Zhongshan Kanghong Electronic Technology
Newly incorporated Company’s relevant business
Co., Ltd.
Songyang Konka Intelligent Technology
Newly incorporated
Development Co., Ltd.
Shenzhen Kangyan Technology Co., Ltd. Newly incorporated
Songyang Konka Smart Industry Operation
Newly incorporated
Management Co., Ltd.
Konka North China (Tianjin) Technology Co.,
Newly incorporated
Ltd.
Shenzhen Kanghong Xintong Investment
Newly incorporated
Partnership (Limited Partnership)
Konka Photovoltaic Technology Co., Ltd. Newly incorporated
Chongqing Konka Low Carbon Technology
Newly incorporated
Co., Ltd.
Sichuan Hongxinchen Real Estate
Acquired
Development Co., Ltd.
Shenzhen Konka Digital Technology
Acquired
Development Co., Ltd.
Jiangxi Konka Industrial Park Development
De-registered
Co., Ltd.
For better allocation of assets
Shanghai Xinfeng Zhuoqun PCB Co., Ltd. De-registered
Ruichang Kangrui Real Estate Co., Ltd. De-registered
32
Konka Group Co., Ltd. Annual Report 2022
Shenzhen Konka Electrical Appliances Co.,
De-registered
Ltd.
Yantai Laikang Industrial Development Co.,
De-registered
Ltd.
Shenzhen Yijiakang Smart Terminal
De-registered
Technology Co., Ltd.
Sichuan Chengrui Real Estate Co., Ltd. Equity transfer
Chongqing Jiarun Real Estate Co., Ltd. Equity transfer
Xi'an Huasheng Jiacheng Real Estate Co., Ltd. Equity transfer
Xi'an Feihe Real Estate Development Co., Ltd. Equity transfer Beneficial to the development of the
Konka Industrial Development (Wuhan) Co., Company’s relevant business and bring
Equity transfer about a certain amount of gains
Ltd.
Hefei KONSEMI Storage Technology Co.,
Capital increase
Ltd.
Hefei Yihe Electronic Co., Ltd. Capital increase
Information about principal subsidiaries and joint stock companies:
None
X Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
XI Prospect of the Company’s Future Development
In 2023, based on the main business, the Company will stick to specialized platform operation,
implement lean management, support long-term value and work to increase its economic benefits.
In addition, it will also see high-quality development as its guideline, adhere to the general principle
of development and focus on its main business, aiming to achieve high-quality development. The
Company’s main tasks in 2023 are listed as follows:
(I) Adhere to the general principle of development
In 2023, the Company will stick to the general principle of development, focus on three dominant
industries “Consumer Electronics + Semiconductor + New Energy Technology”, and adopt a
strategy of lengthening and broadening. It will create its technological barriers and industrial bases,
expand and strengthen real industry, thus achieving steady and high-quality development.
(II) Adhere to a long-term value orientation
In 2023, based on the established strategies, the company will take action while taking long-term
goals into consideration, return to the nature of operation and build a business base,realize a steady
and high-quality growth.
(III) Stick to develop the operation of platform specialization
In 2023, the Company will remain committed to specialized development by creating its own
technology barriers, management barriers, product barriers and supply chain barriers, and
developing sub-divisions with the strength of profession, thus enhancing its core competitive edge.
(IV) Stick to the product-oriented operation
In 2023, the Company will strengthen product thinking and product capability in a systematic
manner. For example, based on products, the Company will make plan for investment, and build
and reshape organizational systems, and take cost reduction and efficiency increase and gross
33
Konka Group Co., Ltd. Annual Report 2022
margin of the products as the approach of assessing products.
Specifically, in terms of product capability in consumer electronics business, the Company will first
center on product innovation, focus on user experience innovation products and the development of
functions that meet high-frequent consumer demand, and also focus on the extended functions that
provide commercial value for the Company’s operation; second, it will focus on product operations,
implement a big product manager system, significantly increase the sales of star products and
rebuild the full life cycle of product management; finally, it will focus on product efficiency, and
improve the economics of scale as well as enhance cost competitiveness. On the side of
semiconductor and new energy business, the Company will work to be a leading player in R&D of
product and achieve industrialization. With regard to the high-tech park business, the Company will
try to develop benchmark samples for the operation of the high-tech parks, and form the product
brand.
(V) Stick to lean management
In 2023, the Company will take a strategic view in strengthening whole-stuff, whole-process and
all-round lean management, and enable this concept to run through the whole process and the whole
element of daily work so as to release management effectiveness. First, the Company will establish
an all-round lean budget management system. Guided by the principle of “efficiency, accuracy, and
implementability”, it will achieve the annual business objectives driven by the budget; second, it
will promote cost reduction and efficiency. With “supply chain reshaping and rebuilding,
procurement management improvement, digital supply chain construction and enhancement” as the
core, it aims to realize the transformation of all-round quality and efficiency of supply chain
management. Third, the Company will improve the lean quality of cost management. Specifically, it
will work to make fine cost budget, analyze cost management, detail energy saving and
consumption reduction, and promote cost control and efficiency increase for all. Therefore, it can
pour resources into the main business to maximize cost effectiveness. Fourth, the Company will
revitalize existing assets that are idle and inefficient, and innovate methods for asset revitalization.
(VI) Business operations
1. Consumer Electronics
In 2023, the key tasks of the color TV business are as follows: First, in terms of the domestic color
TV business, the Company will be oriented to maximize gross margin. To this end, it will reform
the organizational systems, improve the channel structure, strengthen budget management, increase
efficiency and accelerate turnover; second, with respect to the overseas sub-division, the Company
will adhere to the strategy of developing large scale business, and make efforts to make
breakthrough in independent brands and overseas OEM business; third, regarding the
manufacturing business, the Company will actively develop strategic customers. Meanwhile, it will
34
Konka Group Co., Ltd. Annual Report 2022
build the market-oriented competition mechanism of its own product OEM business, benchmark
itself against leading enterprises, promote cost reduction, and focus on capacity enhancement. In
this way, the manufacturing business will play a critical role in the Company.
In 2023, the key tasks of the white goods sub-division are as follows: First, the Company will drive
forward sound development of the white goods business, and continue to expand this business;
second, the Company will work to increase the OEM and overseas channels; third, it will adopt
product-oriented operation strategy while enhancing the capability of creating high-end and high-
margin products.
In 2023, the key tasks of mobile internet sub-division are as follows: First, the Company will focus
on international market and take strong measures to expand this market; second, it will expand
product line by leveraging its overseas advantage, and realize channel reuse of multiple product
lines.
2. Semiconductor Technology
In 2023, the key tasks of the semiconductor sub-division are as follows: First, the Company will
steer the management orientation, organizational structure and assessment system of Micro LED
business from research and development-oriented toward market-oriented mode, and make efforts
to follow market rules, develop large-scale business to gain profit on the basis of industrialization
In 2023, the key tasks of the PCB sub-division are as follows: First, the Company will realize high-
end products by putting new plants into production; second, the Company will achieve high-end
production technique through capability improvement; third, the Company will take active
measures to explore customers that play a decisive role in its long-term development and support
stable operation.
In 2023, the key tasks of the industrial and trade technology business are as follows: First, the
Company will take action to reduce inventory and receivable; second, it will make clear the
industrial and trade technology business mode and its partners, and also reshape its business process
to increase gross margin.
3. Environmental Protection and New Energy
In 2023, the key tasks of the environmental protection and new energy business are as follows: First,
the Company will expand new energy business through capital; second, based on sustainable
development, the Company will promote the transformation of existing environmental protection
business model.
4. Technology Park
In 2023, the key tasks of the technology park sub-division are as follows: First, the Company will
explore new projects to lay a foundation for sustainable development of the technology park sub-
division; second, the Company will further reduce the stock projects; third, on the basis of
headquarters economy and asset-light strategy, the Company will also promote the innovation of the
35
Konka Group Co., Ltd. Annual Report 2022
profit model of the parks. In this way, it can achieve diversified expansion models and profit models
of the parks.
5. Investment Sub-Division
In 2023, the key tasks of industrial investment sub-division are as follows: First, the Company will
enhance the expansion and reserves of new projects; second, the Company will fasten the
implementation of the decrease and withdrawal of invested projects and fund, and promote the
withdrawal of cash flow.
In 2023, the key tasks of venture capital sub-division are as follows: First, the Company will work
to obtain the qualification of state-level incubators and build platform for tech innovation; second,
the Company will accelerate the transition to a commercial real estate operator mode.
XII Communications with the Investment Community such as Researches, Inquiries and
Interviews
√ Applicable □ Not applicable
Type
Way of Main discussions Index to main
of
comm and materials information
Date Place commu Communication party
unicati provided by the communicate
nicatio
on Company d
n party
Earnin
Investors participating in the
Conference gs 2021 Annual Results Record Form for
Room of Office comm Presentation of Konka Group Investor
Individ
15 April 2022 Building of unicati Co., Ltd. via the Shenzhen Stock Relations
Konka R&D ual Exchange Interaction Easy
on Activities (No.:
Building confer website 2022-01)
(http://irm.cninfo.com.cn)
ence
Conference Record Form for
One- Investor
Room of Office Lv Meng, Zhang Shaopeng
on-one Institut
18 May 2022 Building of (Shenzhen Runfan Investment Relations
meetin ion
Konka R&D Co., Ltd.) Activities (No.:
g
Building 2022-02)
Conference Record Form for
Room of Office Investor
Institut Han Ting (Invesco Great Wall
23 May 2022 Building of Other Relations
ion Fund Management)
Konka R&D Activities (No.:
Building 2022-03)
Conference Record Form for
Room of Office Investor http://www.c
Institut ninfo.com.cn/
24 May 2022 Building of Other Li Peiyao (Xingrui Asset) Relations
ion
Konka R&D Activities (No.: new/index
Building 2022-04)
Conference Record Form for
Room of Office Investor
Institut Zhang Ruxiang (Guanglong
30 May 2022 Building of Other Relations
ion Investment)
Konka R&D Activities (No.:
Building 2022-05)
Conference Record Form for
Room of Office Investor
Institut
31 May 2022 Building of Other Lin Zunying (Haitang Capital) Relations
ion
Konka R&D Activities (No.:
Building 2022-06)
36
Konka Group Co., Ltd. Annual Report 2022
Conference Record Form for
Room of Office Investor
Institut Liu Xiaoyu (First Capital
13 June 2022 Building of Other Relations
ion Securities)
Konka R&D Activities (No.:
Building 2022-07)
Conference Record Form for
One- Investor
Room of Office
on-one Institut Liao Zelue (Shenzhen Elitimes
28 June 2022 Building of Relations
meetin ion Capital Management Co., Ltd.)
Konka R&D Activities (No.:
g
Building 2022-08)
Conference Record Form for
Room of Office Investor
Institut
4 July 2022 Building of Other Sun Lei (Nuosheng Qianhai) Relations
ion
Konka R&D Activities (No.:
Building 2022-09)
Conference Tangzhou Yingzi (China Record Form for
One- Investor
Room of Office International Capital
on-one Institut
25 August 2022 Building of Corporation Limited), He Jialin Relations
meetin ion
Konka R&D (KaiFeng Investment), Ma Activities (No.:
g
Building Qiwen (First State Cinda Fund) 2022-10)
Conference Record Form for
One- Investor
Room of Office
19 September on-one Institut Chen Weiqi, Zou Huiyang
Building of Relations
2022 meetin ion (Guosen Securities)
Konka R&D Activities (No.:
g
Building 2022-11)
Investors participating in
Conference theKonka Group Co., Ltd. 2022 Record Form for
Room of Office Collective Reception Day of Investor
9 November Individ
Building of Other Listed Companies of Shenzhen Relations
2022 ual
Konka R&D Districts via the Quanjing Activities (No.:
Building Roadshow website 2022-12)
(http://rs.p5w.net/)
Li Junhui (Shenwan Hongyuan
Securities), Liang Xing
(Xiaozhong Capital), Yang Hui
Conference (Saishuo Fund), Chen Xue Record Form for
Institut Investor
Room of Office (Yuhong Asset Management),
6 December Roads ion and
Building of Zhou Chengdong (Zhuocheng Relations
2022 how individ
Konka R&D Investment), Tan Shuai Activities (No.:
ual
Building (Guochuang United Bank), 2022-13)
Zhang Bengeng (Zhongguang
Shengtong), Zhao Yueyang
(individual investor)
Conference Record Form for
Room of Office Investor
13 December Institut
Building of Other Ma Wangjie (China Securities) Relations
2022 ion
Konka R&D Activities (No.:
Building 2022-14)
37
Konka Group Co., Ltd. Annual Report 2022
Part IV Corporate Governance
I General Information of Corporate Governance
In the Reporting Period, strictly in accordance with the Company Law, Securities Law of the PRC,
Code of Corporate Governance for Listed Companies, Share Listing Rules of Shenzhen Stock
Exchange and the relevant rules and regulations of the CSRC, the Company timely amended the
internal control systems such as the Articles of Association and Administrative Method on
Provision of External Financial Aids as well as Management System on Investors Relationship,
continuously perfected the corporate governance structure and standardized the Company’s
operation. By the end of the Reporting Period, the actual conditions of corporate governance
basically met the requirements of the regulatory documents in respect of corporate governance
structure of listed companies issued by CSRC.
(I) Shareholders and the Shareholders’ General Meeting
The Company drew up Articles of Association and Rules for Procedure of Shareholders’ General
Meeting, ensured that all shareholders, in particular medium and minor shareholders, enjoy legal
rights and equal standard. In the Reporting Period, the Company was able to publish
announcement on Shareholders’ General Meetings in advance, convened Shareholders’ General
Meeting with strictly accordance to relevant requirements, so as to enable the shareholders have
their rights of information to the Company’s material issues and the participation rights. In 2022,
the Company convened seven Shareholders’ General Meeting in total. The Company seriously did
well the registration, arrangement and organization work for the Shareholders’ General Meeting
before the circular on convening the Shareholders’ General Meeting being published at the
designated media. The Company convened the Shareholders’ General Meeting at the office
address of the Company strictly in line with relevant stipulations, which was convenient in traffic,
and the shareholders could attend the session in accordance with their actual situation. The
Company’s directors, supervisors and senior management staffs made explanations and
description for the shareholders’ questions and advices at the session.
(II) Controlling shareholder and the Company
In the Reporting Period, the controlling shareholders and actual controllers strictly regulated its
behavior and complied with laws in exercising their rights and obligations, not bypassed the
Shareholders’ General Meeting to intervene in the Company’s decisions and operations directly or
indirectly. The Company was separated from the controlling shareholders and actual controllers in
aspects of its business, personnel, assets, organ and finance, the Board of Directors, Supervisory
Committee and the internal departments of the Company functioned independently.
38
Konka Group Co., Ltd. Annual Report 2022
(III) Directors and the Board of Directors
The number and structure of the Board Bureau of the Company were in compliance with laws and
regulations. The Company drew up Rules for Procedures of the Board Bureau, so as to ensure a
high efficient operation and scientific decision-making of the Board Bureau; the Company has set
up Independent Director System and engaged three independent directors. In the Reporting Period,
the number of directors and composition of the Board of Directors of the Company as well as the
procedure of selection was in accordance with the requirements of the rules and laws as well as
Articles of Association. The Company set up four special committees, which were Financial Audit
Committee, Nomination Committee, Remuneration & Appraisal Committee, Strategy Committee
to provide profession opinion for the decision of the Board of Directors. All the directors carried
out their work, fulfilled their duties and scrupulously attended the Board sessions in accordance
with Rules of Procedure for the Board of Directors, Rules for Independent Directors, etc. 14
Board sessions were convened by the Company during the Reporting Period, which brought the
decision-making mechanism of the Board of Directors into full play.
(IV) Supervisors and supervisory committee
The Company has established Rules for Procedures of the Supervisory Committee, persons and
structure of the Supervisory Committee was in line with relevant laws and statutes, supervisors
can earnestly perform their responsibilities, independently and efficiently executed supervision
and check responsibilities with a spirit of being responsible to shareholders. In the Reporting
Period, the number of supervisors and composition of the Supervisory Committee of the
Company as well as their selecting procedure complied with the laws, regulations. In accordance
with the requirement of the Rules of Procedure for Supervisory Committee, the supervisors
performed their duties in an earnest and responsible manner, and exercised their functions of
supervision on the decision-making procedure of the Board of Directors, resolutions and the
Company’s operation by law, and took effective supervision over the Company’s significant
events, related transactions, financial position, as well as the legality and compliance on duty
performance by the directors, president and other senior management members.
(V) Performance Appraisal and Incentive & Restrictive Mechanism
The senior management staffs of the Company were recruited on an open basis and in compliance
with the laws and regulations. The Company has established and gradually improved the
performance appraisal standards and incentive & restrictive mechanism for senior management
staffs, so as to attract qualified personnel, and ensure the stability of senior management staffs.
(VI) Interested parties
During the Reporting Period, the Company fully respected and maintained the legal rights of the
interested parties, and realized the balance of interest among the parties such as society,
shareholders and employees, etc. Meanwhile, the Company protected the rights of the employees,
39
Konka Group Co., Ltd. Annual Report 2022
promoted the environmental protection, and actively joined in the social benefit and charitable
cause so as to jointly promote sustainable and healthy development.
(VII) Information disclosure and transparency
The Company formulated the Management System for Investor Relations and the Management
System for Information Disclosure and the Rules on Implementation for Information Disclosure
Committee. And the Company designated specially-assigned person to take charge of the
information disclosure, and designated specialized department to be responsible for the reception
of shareholders and consultation, actively carrying out the work for investor relations
management to ensure equal access to information for all shareholders. The Company strictly
complied with the requirements of the laws, regulations and the Articles of Association to disclose
its information as required by the relevant regulations on an timely, honest, complete and accurate
basis, to ensure the accurate and timely information disclosure, while ensure equal access to
information for all shareholders.
(VIII) Non-standard governance
1. Type of non-standard governance matter existed
There was a situation that the Company disclosed undisclosed information.
2. Types and cycle of undisclosed information provided to the principal shareholder
The Company provided monthly financial data to the principal shareholder.
3. Reasons for the related non-standard governance existed
The Company submitted the undisclosed information such as monthly financial data to the
substantial shareholder directly administrated by the State-owned Assets Supervision and
Administration Commission of State Council in accordance with the managerial demand of
SASAC.
4. Impact on Company independence
After the self-inspection, the Company kept strictly to the requirements of “Notice on
Strengthening the Supervision of Listed Company’s Provision of Non-public Information to
Substantial Shareholders and Actual Controllers”, and “Supplementary Notice Concerning
Strengthening the Supervision of the Non-standard Governance Behavior of Listed Company's
Provision of Non-public Information to Substantial Shareholders and Actual Controllers”, while
stringently performed the necessary procedures. There existed no circumstances of substantial
shareholder’s abuse of control and disclosure of undisclosed information for insider trading, and
hence, it has no impact on the independence of the Company.
(IX) Development of company’s special governance activity, formulation and
implementation of registration and management system for the insider of inside information
1. Establishment and perfection of management system for the insider of inside information
To further standardize the company’s inside information management behavior, strengthen the
40
Konka Group Co., Ltd. Annual Report 2022
company’s inside information confidential work, and maintain the fair principle of information
disclosure, the Company established Inside Information and Insider Management System in
Konka Group Co., Ltd. The Company strictly implements the system in the information
disclosure work, meanwhile, carefully implements the Company’s inside information and insider
registration and management method, registers the insider of inside information, and report to
Shenzhen Stock Exchange and Shenzhen Security Regulatory Bureau according to the provision.
The Company conducted the special inspection on the inside information management during the
occurrence of major event in 2022 and the annual report in 2022. After the inspection, the Company
actually realized that the insider of inside information strictly kept the confidential provision, did
not disclose, divulge and spread the Company’s inside information to the outside, the insider of
inside information did not buy and sell the Company’s share with the inside information before
disclosing the major sensitive information influencing the Company’s share price, there was no
investigation and rectification from the regulatory department during the editing, review and
disclosure of regular report and major event. Management Rules for Inside Information and Insider
Management System of Konka Group Co., Ltd. was implemented in place and controlled effectively.
2. Establishment and implementation of external information user’s management system
To strengthen the management on the reporting of Company’s inside information, the Company
establishes Inside Information Reporting Management System, and prescribes the inside
information reporting range, reporting procedure, responsibility division and other matters
according to Security Law in People’s Republic of China, Information Disclosure Management
Method in Listed Company, Inside Information and Insider Management System in Konka Group
Co., Ltd. and other related provisions in the laws, regulations and regulatory documents.
The Company conducted the special inspection on the inside information reporting status during
the occurrence of major event in 2022 and the annual report in 2022. After the inspection, the
Company’s inside information reporting status complies with the requirements in Inside
Information Reporting Management System. Inside Information Reporting Management System
was implemented in place and controlled effectively.
Indicate by tick market whether there is any material incompliance with laws, regulations and
provisions issued by the CSRC governing the governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business, Personnel, Asset, Organization and Financial Affairs
During the Reporting Period, the company was fully separated from the controlling shareholders in
terms of business, staff, assets, organs, and finance, which owned independent legal representative
and main status in market competition and had independent accounting, as well as possessed
41
Konka Group Co., Ltd. Annual Report 2022
complete business and the ability of independent operation to face the market.
(I) Business: the Company owned complete supply, R&D, production and sales system, possessed
ability of independent operation to face the market by independent operation, independent
accounting & decision-making, independent bearing responsibility & risks, didn’t subject to the
interference and control of the controlling shareholders, actual controller and its controlled
enterprises.
(II) Staff: the Company was independent of the controlling shareholder with respect to labor,
personnel and salaries management. The Company owned independent team of staffs, the senior
management staff, financial personnel and business personnel received their remunerations in the
Company, and they were full-time staffs of the Company without holding any post, except directors
and supervisors, in shareholders’ units or other related enterprises.
(III) Assets integrity: the Company had production and operation premises completely separated
from the controlling shareholder, and the unaffiliated and integral assets structure, as well as the
independent production system, ancillary production system, the ancillary facilities, house property
right and other assets, which also possessed independent procurement and sales system.
(IV) Organ: the Company had its own functional organs adapting to the needs of self-development
and market competitiveness, all the functional organs were separated from each other in aspects of
personnel, office premises and management rules, etc., there existed no particulars about any
shareholders, other units or individuals interfering the organ setting of the Company.
(V) Finance: the Company established an independent finance department with full-time financial
personnel and an independent finance and accounting system, and independently carried out the
financial work in line with requirements of relevant accounting rules; the Company promulgated
sound financial management system to operate independently without sharing common accounts
with the controlling shareholder, related enterprise, other units or individual; the Company
independently declared and paid the tax by laws without particulars on paying taxes together with
shareholders’ units.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Date of the
Meeting Type participat Disclosure date Meeting resolutions
meeting
ion ratio
Extraordinar 24.2123 Resolutions of the 1st
The 1st Extraordinary
y General 22 March 2022 23 March 2022 Extraordinary General
General Meeting of 2022 ％
Meeting Meeting of 2022
Annual 24.1901
The 2021 Annual General Resolutions of the 2021
General 25 April 2022 26 April 2022
Meeting ％ Annual General Meeting
Meeting
Extraordinar 24.4254 Resolutions of the 2nd
The 2nd Extraordinary
y General 16 May 2022 17 May 2022 Extraordinary General
General Meeting of 2022 ％
Meeting Meeting of 2022
42
Konka Group Co., Ltd. Annual Report 2022
Extraordinar 24.4426 Resolutions of the 3rd
The 3rd Extraordinary
y General 27 June 2022 28 June 2022 Extraordinary General
General Meeting of 2022 ％
Meeting Meeting of 2022
Extraordinar 24.5327 Resolutions of the 4th
The 4th Extraordinary
y General 25 July 2022 26 July 2022 Extraordinary General
General Meeting of 2022 ％
Meeting Meeting of 2022
Extraordinar 24.5474 Resolutions of the 5th
The 5th Extraordinary 14 November 15 November
y General Extraordinary General
General Meeting of 2022 ％ 2022 2022
Meeting Meeting of 2022
Extraordinar 24.5216 Resolutions of the 6th
The 6th Extraordinary 23 December 24 December
y General Extraordinary General
General Meeting of 2022 ％ 2022 2022
Meeting Meeting of 2022
2. Special General Meetings Convened at the Request of Preferred Shareholders with
Resumed Voting Rights
□ Applicable √ Not applicable
V Directors, Supervisors, Senior Management and Staff
1. Basic Information
Decrea Other
Increas
Begin se in incre
Incu G e in the Ending
ning the ase/d Reason
Office mbe en A Start of End of Reporti shareho
Name shareh Reporti ecrea for
title nt/Fo de ge tenure tenure ng lding
olding ng se change
rmer r Period (share)
(share) Period (shar
(share)
(share) e)
Directo
r,
Incu M
Liu Chairm 25 July 25 July
mbe al 52 0 0 0 0 0
Fengxi an of 2022 2025
nt e
the
Board
Incu M
Directo 25 July 25 July
Yao Wei mbe al 48 0 0 0 0 0
r 2022 2025
nt e
Incu M
Zhou Directo 25 July 25 July
mbe al 44 0 0 0 0 0
Bin r 2022 2025
nt e
Emplo
Incu M
Ye yee 25 July 25 July
mbe al 53 0 0 0 0 0
Xingbin directo 2022 2025
nt e
r
Indepe
Incu M
ndent 25 July 25 July
Liu Jian mbe al 57 0 0 0 0 0
directo 2022 2025
nt e
r
Indepe
Wang Incu M
ndent 25 July 25 July
Shuguan mbe al 52 0 0 0 0 0
directo 2022 2025
g nt e
r
Indepe Fe
Deng Incu
ndent m 25 July 25 July
Chunhu mbe 60 0 0 0 0 0
directo al 2022 2025
a nt
r e
Superv Incu M
Cai 25 July 25 July
isor, mbe al 50 0 0 0 0 0
Weibin 2022 2025
chairm nt e
43
Konka Group Co., Ltd. Annual Report 2022
an of
the
Superv
isory
Commi
ttee
Incu M
Yang Superv 25 July 25 July
mbe al 54 0 0 0 0 0
Guobin isor 2022 2025
nt e
Emplo
Incu M
yee 25 July 25 July
Li Jun mbe al 52 0 0 0 0 0
supervi 2022 2025
nt e
sor
Incu M
Zhou Preside 27 March 27 March
mbe al 44 0 0 0 0 0
Bin nt 2020 2023
nt e
Executi
Incu M 23
Cao ve vice 27 March
mbe al 45 August 0 0 0 0 0
Shiping preside 2023
nt e 2022
nt
Vice Incu M
Li 27 March 27 March
preside mbe al 55 0 0 0 0 0
Hongtao 2020 2023
nt nt e
Board Incu M
Wu 27 March 27 March
Secreta mbe al 48 0 0 0 0 0
Yongjun 2020 2023
ry nt e
Incu M
Li 27 March 27 March
CFO mbe al 50 0 0 0 0 0
Chunlei 2020 2023
nt e
Vice Incu M
27 March 27 March
Yang Bo preside mbe al 53 0 0 0 0 0
2020 2023
nt nt e
Vice Incu M
Lin 1 June 27 March
preside mbe al 52 0 0 0 0 0
Hongfan 2022 2023
nt nt e
M 1 28
Li Directo For
al 45 Novembe February 0 0 0 0 0
Zheng r mer
e r 2021 2022
Reduct
ion
Vice M 28 throug
Sun For 27 March
preside al 51 February 26,000 0 6,500 0 19,500 h
Qingyan mer 2020
nt e 2022 centrali
zed
bidding
Indepe
Sun M 3
ndent For 25 July
Shengdi al 68 Decembe 0 0 0 0 0
directo mer 2022
an e r 2018
r
Total 26,000 0 6,500 0 19,500
Indicate by tick mark whether any directors or supervisors left or any senior management were
disengaged during the Reporting Period
√ Yes □ No
During the Reporting Period, the former director of the Company Mr. Li Zheng resigned the post of
44
Konka Group Co., Ltd. Annual Report 2022
director for job arrangement, and the former vice president of the Company Mr. Sun Qingyan
resigned the post of vice president for job changes.
Change of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
Type of
Name Office title Date of change Reason for change
change
Elected as Director by the shareholders’
Liu Fengxi Director Appointed 25 July 2022
meeting
Chairman of Elected as Chairman of the Board by the
Liu Fengxi Appointed 25 July 2022
the Board Board
Elected as Director by the shareholders’
Yao Wei Director Appointed 25 July 2022
meeting
Elected as Director by the shareholders’
Zhou Bin Director Appointed 25 July 2022
meeting
Elected as Director by the shareholders’
Ye Xingbin Director Appointed 21 March 2022
meeting
Employee Elected as Employee Director by the
Ye Xingbin Appointed 25 July 2022
director congress of workers and staff
Independent Elected as Independent Director by the
Liu Jian Appointed 25 July 2022
director shareholders’ meeting
Wang Independent Elected as Independent Director by the
Appointed 25 July 2022
Shuguang director shareholders’ meeting
Independent Elected as Independent Director by the
Deng Chunhua Appointed 25 July 2022
director shareholders’ meeting
Elected as Supervisor by the shareholders’
Cai Weibin Supervisor Appointed 25 July 2022
meeting
Chairman of
the Elected as Chairman of the Supervisory
Cai Weibin Appointed 25 July 2022
Supervisory Committee by the Supervisory Committee
Committee
Elected as Supervisor by the shareholders’
Yang Guobin Supervisor Appointed 25 July 2022
meeting
Employee Elected as Employee Supervisor by the
Li Jun Appointed 25 July 2022
supervisor congress of workers and staff
Executive vice
Cao Shiping Appointed 24 August 2022 Appointed by the Board
president
Lin Hongfan Vice president Appointed 1 June 2022 Appointed by the Board
Li Zheng Director Left 28 February 2022 Resigned for job arrangement
Sun Qingyan Vice president Left 28 February 2022 Resigned for job changes
Left for
Independent expiration of
Sun Shengdian 25 July 2022 Expiration of the term of office for the Board
director the term of
office
2. Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the
incumbent directors, supervisors and senior management:
1. Director
Liu Fengxi, male, ethnic group of Han, born in 1971, was the Chairman of the Board with a master
degree. He once worked as the marketing GM for the multi-media division of Konka Group,
Assistant GM and then Vice GM of Shenzhen Konka Telecommunications Technology Co., Ltd.,
45
Konka Group Co., Ltd. Annual Report 2022
Chief of the Operation Management Center of Konka Group, Assistant to President, Vice President,
President, Secretary of the Party Committee, CEO and Chairman of the Board of Konka Group,
Vice GM and the member of the Standing Committee of OCT Group, GM, Secretary of the Party
Committee and Chairman of the Board of Shenzhen Huakang Chuangzhan Technology Holding
Group Co., Ltd., Executive Director and Chairman of the Board of OCT North Investment Co., Ltd.
etc. And now he is acting as the Deputy Secretary of the Party Committee, Director, GM of OCT
Group, Deputy Chairman of the Board and Deputy Secretary of CPC of Shenzhen Overseas
Chinese Town Co., Ltd., and the Board Chairman of Konka Group.
Yao Wei, Director, male, ethnic group of Han, bachelor degree, was born in 1975. He once served
as Chief Accountant in CGN Wind Power Co., Ltd., Chief Accountant in CGN New Energy
Holdings Co., Ltd., Vice GM (in charge) of Financial Department, GM of Financial Department,
GM of Finance and Asset Management Department in China General Nuclear Power Corporation.
Currently, he acts as the director of China Everbright Bank Co., Ltd., the member of the Standing
Committee and Chief Accountant in Overseas Chinese Town Holdings Company and Director of
Konka Group.
Zhou Bin, male, ethnic group of Han, born in 1979, was the CEO, director and president of the
Company with a bachelor degree. He once served as the director assistant, deputy director and
director in Operating Management Center in Konka Group, assistant of the president in the Board
of Directors & Director in Operating Management Center in Konka Group and President of Konka
Group. Now, he acts as the Chairman of Shenzhen Konka Investment Holdings Co., Ltd. and
Shenzhen Konka Capital Equity Investment Management Co., Ltd. and Director,
Secretary of the Party Committee and President & CEO in Konka Group.
Ye Xingbin, male, Han Chinese, born in 1970, was the Employee Director of the Company and
holds a bachelor's degree. He previously served as a Special Director at the Overseas Chinese Town
Holdings Company (OCT Group), and was a member of the Standing Committee of the
Qiandongnan Prefecture of Guizhou Province, the Deputy Governor of the Prefecture Government,
the Director of Shenzhen Huakang Chuangzhan Technology Holding Group Co., Ltd., and the
Deputy Party Secretary of the Party Committee and Director of Konka Group. He is currently
serves as the Vice Chairman of the Federation of Trade Unions Committee of Overseas Chinese
Town Holdings Company, Deputy Party Secretary of the Party Committee, Chairman of the Labor
Union and Employee Director of Konka Group.
2. Independent Director
46
Konka Group Co., Ltd. Annual Report 2022
Mr. Liu Jian, Independent Director, is a Han Chinese man born in 1966 and holds a master's degree.
His notable professional experiences include having served as an editor at the Foreign Economic
and Trade University Press and the China Business Times, and also as an independent director at
Wuhan Tianyuan Environmental Protection Co., Ltd. and Hisense Visual Technology Co., Ltd. In
his current capacity, Mr. Liu Jian holds various positions in different organizations. He serves as the
chief editor and president of the Economic Observer Newspaper, presides over the Beijing Jingguan
Cultural Media Co., Ltd. as its chairman, and functions as a director and general manager of
Shandong Economic Observer Newspaper Media Co., Ltd. Additionally, he takes on the role of an
executive director at Beijing Jingguan Advertising Management Co., Ltd., and operates as an
independent director of both the Founder Technology Group Corporation and Konka Group.
Wang Shuguang, Independent Director, male, ethnic group of Han, was born in 1971 with a
doctoral degree. He served as Independent Director of Yantai Rural Commercial Bank, Jinan Rural
Commercial Bank, Ningbo Yuyao Rural Commercial Bank and SDIC Zhonglu, and External
Supervisor and Convener of the Board of Supervisors of Industrial Bank Co., Ltd. Currently, he
serves as Professor and Doctoral Supervisor in the School of Economics of Peking University,
Executive Deputy Director of the Institute for Cultural Industries, Peking University and
Independent Director of Konka Group.
Deng Chunhua, Independent Director, female, ethnic group of Han, born in 1963 with a master
degree of management, accounting professor and a Certified Public Accountant in China (non-
practicing member). She served as Chief Accountant and Project Manager of WUYIGE Certified
Public Accounts LLP. She has been teaching in the School of Accounting of Zhongnan University
of Economics and Law as Assistant Lecturer, Lecturer, Associate Professor and Professor. Currently,
she serves as a Master Tutor and Professor in the School of Accounting of Zhongnan University of
Economics and Law, the Independent Director of Zhejiang Goldensea Hi Tech Co., Ltd, Zhejiang
Jinke Tom Culture Industry Co., Ltd., Wolong Electric Group Co., Ltd., Zhejiang Youchuang
Material Technology Co., Ltd. and Konka Group.
3. Supervisor
Cai Weibin, Chairman of the Supervisory Committee, male, ethnic group of Han, Master’s Degree,
was born in 1973. He once served as vice GM, deputy secretary of the Party Committee and
Secretary of Committee for Discipline Inspection in Chongqing OCT Industry Development Co.,
Ltd. Vice Minister of Discipline Inspection and Supervision and Director of the Discipline
Inspection Office in Overseas Chinese Town Holdings Company Currently, he acts as GM of Legal
Compliance Department in Overseas Chinese Town Holdings Company and Chairman of the
47
Konka Group Co., Ltd. Annual Report 2022
Supervisory Committee of Konka Group.
Yang Guobin, Supervisor, male, was born in 1969, Bachelor’s Degree, Certified Public Accountant.
He served as Deputy Director of the Finance Department of OCT Group, CFO of Konka Group and
Deputy Director of the Corporate Management Department of OCT Group. Currently, he serves as
a full-time Director in OCT Group and Supervisor of Konka Group.
Li Jun, male, ethnic group of Han, born in 1971, was an employee supervisor of the Company with
a bachelor degree. Formerly worked as the Senior Manager of the Financial Department in
Shenzhen Telecommunications Technology Co., Ltd., the Senior Manager and assistant to the chief
and deputy director of Auditing and Legal Affairs Department in Konka Group, Office Director of
discipline inspection commission of Konka Group, and employee supervisor of Konka Group.
Presently working as the deputy secretary of discipline inspection commission of Konka Group,
General Counsel, Chief of the Auditing and Legal Affairs Department and Employee Supervisor of
Konka Group.
4. Senior Executive
Zhou Bin, male, ethnic group of Han, born in 1979, was the director and president of the Company
with a bachelor degree. He once served as the director assistant, deputy director and director in
Operating Management Center in Konka Group, assistant of the president in the Board of Directors
& Director in Operating Management Center in Konka Group and President of Konka Group. Now,
he acts as the Chairman of Shenzhen Konka Investment Holdings Co., Ltd. and Shenzhen Konka
Capital Equity Investment Management Co., Ltd. and Director, Secretary of the Party Committee
and President & CEO in Konka Group.
Cao Shiping, male, Han nationality, born in 1978, was the executive vice president of the Company
with a master degree. Once served as the GM in Jinzhou Branch and Tianjin Branch of Konka
Group Multi-media, GM in Multi-media Business Division Customer Cooperation Department,
vice GM in Multi-media Marketing Business Division, vice GM in Multi-media Business Division
and GM in Marketing Center, GM in Multi-media Business Division, GM in Internet Business
Division and vice president of Konka Group. Now he acts as the executive vice president in Konka
Group.
Li Hongtao, male, Han nationality, born in 1968, was the vice president of the Company with a
bachelor degree. He successively took the post such as Assistant to GM, GM, Chairman of the
Board and GM of Shenzhen Konka Telecommunication Technology Co., Ltd and Assistant to
48
Konka Group Co., Ltd. Annual Report 2022
President and vice president of Konka Group etc. He now is acting as Vice President of Konka
Group.
Wu Yongjun, male, Han nationality, born in 1975, was the Board Secretary with a master degree.
Formerly he worked as the senior manager of Secretariat, assistant to the chief, vice chief, chief,
Securities Affairs representative and Board Secretary in Konka Group. Presently he is working as
the secretary of the board of directors of Konka Group.
Li Chunlei, male, Han nationality, born in 1973, was the CFO of the Company with a master degree.
Once served as the director in Real Estate Business Division in Konka Group, vice GM and GM in
Kunshan Kangsheng Investment Development Co., Ltd., deputy director (preside the work) and
director in Strategic Development Center, GM in Financial Center and GM in Asset Settlement
Center and CFO of Konka Group. Now he acts as the CFO in Konka Group.
Yang Bo, male, Han nationality, born in 1970, was the vice president of the Company with a master
degree. Once served as the director in Shenzhen Cable Television Education Financial Channel,
director in the market sales and support region of US Tailiyang Communications Company, GM in
Program Operating Department in Shenzhen Topway Video Communication Co., Ltd., director and
GM in Shenzhen Tianhua Century Media Co., Ltd., GM in Market Sales Center in Shenzhen
Topway Video Communication Co., Ltd. and vice president of Konka Group. Now he acts as the
vice president in Konka Group.
Lin Hongfan, male, Han nationality, born in 1971, was the vice president of the Company with a
MBA degree. Once served as the vice GM in Multi-media Marketing Business Divisionof Konka
Group, GM of Color TV Strategy and Supply Chain Management Center, executive vice GM and
GM in Multi-media Business Division of Konka Group, vice president and president assistant of
Konka Group. Now he acts as the vice president in Konka Group.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Remuneration or
Office held in the End of
Name Shareholding entity Start of tenure allowance from the
shareholding entity tenure
shareholding entity
Liu Director, Deputy Secretary
OCT Group 21 May 2021 Yes
Fengxi of CPC, GM
Deputy Chairman of the
Liu Shenzhen Overseas
Board, Deputy Secretary 22 June 2021
Fengxi Chinese Town Co., Ltd.
of CPC
Party Committee Standing
Yao Wei OCT Group Committee and Chief 1 July 2020 Yes
Accountant
49
Konka Group Co., Ltd. Annual Report 2022
Cai GM of Legal Compliance
OCT Group 1 December 2020 Yes
Weibin Department
Yang Full-time director in Board
OCT Group 7 March 2018 Yes
Guobin Office
1. Except the above situation, other directors, supervisors and senior management didn’t hold any position in the
shareholders’ units.
Notes 2. It is unknown the ending date of the posts of Mr. Liu Fengxi, Mr. Yao Wei, Mr. Cai Weibin and Mr. Yang
Guobin held in the shareholders’ units.
Offices held concurrently in other entities:
√Applicable □Not applicable
Remuneration or
Office held in End of
Name Other entity Start of tenure allowance from
the entity tenure
the entity
Yao Wei China Everbright Bank Co., Ltd. Director 5 February 2021
Chief editor and
Liu Jian The Economic Observer 16 April 2001 Yes
president
Beijing Economic Observer Chairman of the
Liu Jian 25 May 2018
Culture Media Co., Ltd. Board
Shandong Economic Observer
Liu Jian Director, GM 28 September 2022
Media Co., Ltd.
Beijing Economic Observer
Executive
Liu Jian Baoguang Consulting Management 14 September 2020
director
Co., Ltd.
Founder Technology Group Co., Independent
Liu Jian 15 November 2018 Yes
Ltd. director
Wang School of Economics of Peking
Professor Yes
Shuguang University
Wang Institute for Cultural Industries of
Deputy director
Shuguang Peking University
Zhongnan University of
Deng Chunhua Professor Yes
Economics and Law
Zhejiang Goldensea Hi Tech Independent
Deng Chunhua 15 May 2019 Yes
Co.,Ltd director
Zhejiang Jinke Culture Industry Independent
Deng Chunhua 8 July 2020 Yes
Co., Ltd. director
Independent
Deng Chunhua Wolong Electric Group Co., Ltd. 7 September 2020 Yes
director
Zhejiang Youchuang Material Independent
Deng Chunhua 27 October 2020 Yes
Technology Co.,Ltd. director
Notes None
Punishments imposed in the recent three years by the securities regulator on the incumbent
directors, supervisors and senior management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
3. Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors,
supervisors and senior management:
The salary of directors and supervisors of the Company should be submitted to the shareholders
meeting for review after the approval and consent by the Board of directors. Referred to the salary
level of the Directors and Supervisor of the domestic listed companies of same industry, the salary
proposal of the Director and Supervisors of the Company which approved and reviewed by the 2nd
Extraordinary General Meeting of 2015 were as follows: (1) the basic annual salary standard of the
Board Chairman was of RMB1.2 million, the subsidy standard of other Directors (excluding the
Directors serving in the Company) was of RMB0.3 million per person per year and the subsidy
50
Konka Group Co., Ltd. Annual Report 2022
standard of the Supervisors (excluding the Employee Supervisors) was of RMB0.2 million per
person per year; which was executed since June 2015. (2) the above standards were all pre-tax
standard with the individual income tax burdened in person as well as the Company withheld and
remitted tax.
Other treatment for independent directors: travel expense when they went to attend the Board
sessions, Supervisory sessions or Shareholders’ General Meetings and the expenses when they were
performing their duties as stipulated in the relevant regulations and the Articles of Association and
other relevant systems, all these could be reported for deletion.
The Board of Directors determined the remuneration of senior management staffs referring to the
following factors: a. scope of jobs and responsibility shouldered; b. actual profit of the Company; c.
market remuneration level in the same industry and same area.
Remuneration of the directors, supervisors and senior management of the Company during the
Reporting Period
Unit: RMB'0,000
Total before-
Any
tax
Incumbent/For remuneration
Name Office title Gender Age remuneration
mer from related
from the
party
Company
Liu Fengxi Chairman of the Board Male 52 Incumbent Yes
Yao Wei Director Male 48 Incumbent Yes
Secretary of CPC, CEO,
Zhou Bin Male 44 Incumbent 400.19 No
Director, President
Employee Director,
Ye Xingbin Male 53 Incumbent 202.02 No
Deputy Secretary of CPC
Liu Jian Independent director Male 57 Incumbent 12.5 No
Wang Shuguang Independent director Male 52 Incumbent 30 No
Deng Chunhua Independent director Female 60 Incumbent 30 No
Chairman of the
Cai Weibin Male 50 Incumbent Yes
Supervisory Committee
Yang Guobin Supervisor Male 54 Incumbent Yes
Li Jun Employee Supervisor Male 52 Incumbent 145.80 No
Cao Shiping Executive vice president Male 45 Incumbent 210.18 No
Li Hongtao Vice president Male 55 Incumbent 199.04 No
Wu Yongjun Board Secretary Male 48 Incumbent 195.73 No
Li Chunlei CFO Male 50 Incumbent 210.93 No
Yang Bo Vice president Male 53 Incumbent 198.33 No
Lin Hongfan Vice president Male 52 Incumbent 214.77 No
Sun Shengdian Independent director Male 68 Former 17.5 No
Li Zheng Director Male 45 Former Yes
Sun Qingyan Vice president Male 51 Former 139.86 No
Total -- -- -- -- 2,206.85 --
VI Performance of Duty by Independent Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Meeting resolutions
The 53rd Resolutions of the 53rd Meeting of the 9th Board of
17 January 2022
Meeting of the 18 January 2022 Directors
51
Konka Group Co., Ltd. Annual Report 2022
9th Board of
Directors
The 54th Resolutions on Adjusting Remunerations of Senior
Meeting of the Management; Resolutions on 2022 Donation Plan;
21 February 2022 23 February 2022
9th Board of Resolutions of the 54th Meeting of the 9th Board of
Directors Directors
The 55th
Meeting of the Resolutions of the 55th Meeting of the 9th Board of
4 March 2022 7 March 2022
9th Board of Directors
Directors
Resolutions of the 56th Meeting of the 9th Board of
Directors; Resolutions on Applying for General Credit
Limit from Industrial Bank Co., Ltd.; Resolutions on
Applying for General Credit Limit from Shenzhen
Branch, China Guangfa Bank Co., Ltd.; Resolutions on
Applying for General Credit Limit from China
Construction Bank (CCB); Resolutions on Applying
for General Credit Limit from Shanghai Pudong
Development Bank (SPD bank); Resolutions on
Applying for General Credit Limit from Agricultural
Bank of China (ABC); Resolutions on Applying for
The 56th
30 March 2022 General Credit Limit from China Resources Bank of
Meeting of the 28 March 2022
Zhuhai Co., Ltd. (CRBC); Resolutions on Applying for
9th Board of
General Credit Limit from Export-Import Bank of
Directors
China (EIBC); Resolutions on Applying for General
Credit Limit from China Bohai Bank Co., Ltd.;
Resolutions on Applying for General Credit Limit from
Bank of Hangzhou; Resolutions on Applying for
General Credit Limit from Shenzhen Branch, Hua Xia
Bank Co., Ltd.; Resolutions on Applying for General
Credit Limit from Shenzhen Rural Commercial Bank
(SRCB); Resolutions on Business Plan and Financial
Budget Plan for 2022; Resolutions on Formulating
Documents related to Management Authorized by the
Board of Directors
The 57th The 57th meeting of the 9th Board of Directors resulted
Meeting of the in two resolutions: one concerning a new equity
27 April 2022 28 April 2022
9th Board of investment plan for 2022, and the other regarding a
Directors new fixed assets investment plan for 2022.
The 58th meeting of the 9th Board of Directors passed
The 58th
a resolution regarding the investment and construction
Meeting of the
20 May 2022 21 May 2022 of the Konka (Haimen) Science and Technology
9th Board of
Innovation Park in the Nantong Haimen Economic and
Directors
Technological Development Zone.
The 59th
The 59th meeting of the 9th Board of Directors resulted
Meeting of the
1 June 2022 2 June 2022 in a resolution to purchase the office building of
9th Board of
"Science and Technology Innovation Cloud Valley".
Directors
The 60th The 60th meeting of the 9th Board of Directors
Meeting of the included a resolution on the land collection and storage
10 June 2022 11 June 2022
9th Board of in the east plant area of Henan Frestec Household
Directors Appliances Co., Ltd.
The 61st
Meeting of the Resolutions of the 61st Meeting of the 9th Board of
8 July 2022 9 July 2022
9th Board of Directors
Directors
The 1st Meeting
of the 10th Resolutions of the 1st Meeting of the 10th Board of
25 July 2022 26 July 2022
Board of Directors
Directors
52
Konka Group Co., Ltd. Annual Report 2022
Resolutions of the 2nd Meeting of the 10th Board of
The 2nd Meeting
Directors; Resolution on the Listing Transfer of 49%
of the 10th
23 August 2022 25 August 2022 Equity in Dongguan Guankang Yuhong Investment
Board of
Co., Ltd.; Resolution on Applying for General Credit
Directors
Limit from HSBC
Resolutions regarding the management team's business
performance assessment outcomes. Resolutions
The 3rd Meeting
concerning the company's 2021 bonus plan for the
of the 10th
8 October 2022 management team. Resolutions pertaining to the
Board of
payroll liquidation plan for 2021 and the payroll budget
Directors
plan for 2022. Resolution to request a comprehensive
credit line from China Development Bank.
The fourth meeting of the 10th Board of Directors has
passed two resolutions. The first resolution is about
The 4th Meeting
revising the Measures for the Assessment of Business
of the 10th
27 October 2022 28 October 2022 Performance of Enterprise Heads of Konka Group Co.,
Board of
Ltd. The second resolution is about applying for a
Directors
comprehensive credit line from Xiamen International
Bank.
Resolutions of the 5th Meeting of the 10th Board of
Directors; Resolutions on Letter of Commitment on
Performance for 2022 for the Company’s Management
Team; Resolution on Applying for General Credit
Limit from Bank of China; Resolution on Applying for
The 5th Meeting
General Credit Limit from Industrial and Commercial
of the 10th
6 December 2022 7 December 2022 Bank of China (ICBC); Resolution on Applying for
Board of
General Credit Limit from Bank of Communications;
Directors
Resolution on Applying for General Credit Limit from
Bank of Ningbo; Resolution on Applying for General
Credit Limit from China Zheshang Bank Co., Ltd.;
Resolution on Applying for General Credit Limit from
Guangdong Huaxing Bank
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
The director
Total number Board
Board Board failed to attend
of board Board meetings
meetings meetings the two General
meetings the meetings attended by
Director attended director consecutive meetings
director was attended on way of
through a failed to board attended
eligible to site telecommuni
proxy attend meetings
attend cation
(yes/no)
Liu Fengxi 14 1 13 0 0 No 0
Yao Wei 14 1 13 0 0 No 0
Li Zheng 2 0 2 0 0 No 0
Zhou Bin 14 1 13 0 0 No 7
Ye Xingbin 11 1 10 0 0 No 4
Sun
9 0 9 0 0 No 2
Shengdian
Liu Jian 5 0 5 0 0 No 0
Wang
14 0 14 0 0 No 0
Shuguang
Deng
14 0 14 0 0 No 0
Chunhua
Why any director failed to attend two consecutive board meetings:
Not applicable
3. Objections Raised by Directors on Matters of the Company
53
Konka Group Co., Ltd. Annual Report 2022
Indicate by tick mark whether any directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.
√ Yes □ No
Suggestions from directors adopted or not adopted by the Company:
During the Reporting Period, the Directors of the Company vigorously attended the relevant
meetings, carefully reviewed each proposal, fully played the role of "making strategies, making
decisions and preventing risks, gained insight into the present situation of new businesses such as
semi-conductor and new energy, the R&D and brand building progress, the operating situation, and
the execution situation of the internal control construction and the resolutions of the meetings of the
Board of Directors as well as the Annual General Meeting.
Directors of the Company put forward the constructive advices by use of their own professional
knowledge towards the internal management. For example, to actively promote the refinement of
the Company’s development strategy plan and implementation thereof, to provide advices on
expanding the Company’s business, and to pay attention to risks control of the Company such as the
cash flow and accounts receivable management. The Company carefully adopted the advices from
the Directors and constantly improved and enhanced the management level of the Company.
VII Performance of Duties by Specialized Committees under the Board during this
Reporting Period
Other
Numb informat Details
er of ion about
Commi Member meeti Conven Important opinions and about issues
Content
ttee s ngs ed date suggestions raised the with
conve perform objections
ned ance of (if any)
duty
1. The arrangement of the audit
work on the 2021 Annual Report
of the Company was approved.
2. It was consented that the
annual financial statements shall
The 2021 Financial be provided to the CPA for the
statements and the annual audit. 3. It is required that
Deng
Arrangement of the 2021 ShineWing Certified Public
Chunhu 7
Annual Audit submitted Accountants (special general
Audit a, Yao January
by the Company’s partnership) appointed by the
Commi Wei, 8 2022
financial center (issued by Company should carry out the
ttee Wang
the Company prior to the auditing in strict accordance with
Shuguan
entry of the annual CPA) the requirements of the China
g
Practice Standards for Certified
Public Accountants, and should
promptly communicate with the
Committee if major problems are
discovered.
4 March Conduct a review of the No objections were raised
2022 following documents: regarding the following
54
Konka Group Co., Ltd. Annual Report 2022
2021 Annual Internal documents submitted by the
Audit Report of Konka company: 2021 Annual Internal
Group submitted by the Audit Report of Konka Group,
auditing company, Konka Konka Group’s Internal Audit
Group’s Internal Audit Quality Self-assessment Report,
Quality Self-assessment and Konka Group’s 2022 Audit
Repor”, and Konka and Project Post-evaluation
Group’s 2022 Audit and Work Plan.
Project Post-evaluation
Work Plan.
The CPAs for annual
audit were engaged for No objection was made to the
the discussion and review 2021 annual financial statements
15
of the Company's of the Company preliminarily
March
financial statements after audited by ShineWing Certified
2022
they have issued Public Accountants (special
preliminary audit common partnership).
opinions.
Communications were 1. The 2021 annual audit
made with the Internal performed by ShineWing
Audit Department of the Certified Public Accountants
Company; the 2021 (special common partnership)
annual audit performed was satisfying. 2. No objection
by ShineWing Certified was made to the 2021 Audit
18 Public Accountants Report issued by ShineWing
March (special common Certified Public Accountants
2022 partnership) was (special common partnership). 3.
appraised; the 2021 It was proposed that ShineWing
annual financial Certified Public Accountants
statements were reviewed (special common partnership) be
and retention of the retained for further service as the
accounting firm was audit institution of the Company's
deliberated. 2022 annual financial statements.
2022Q1 financial No objection was made to the
27 April
statements of the 2022Q1 financial statements of
2022
Company the Company.
23 2022 interim financial No objection was made to the
August statements of the 2022 interim financial statements
2022 Company of the Company.
Make a proposal to retain RSM
China Certified Public
17 Issues related to the Accountants (Special General
October selection of accounting Partnership) as the audit firm and
2022 firms for the year 2022 internal control audit firm for the
company’s 2022 financial
statements.
27 2021Q3 financial No objection was made to the
October statements of the 2021Q3 financial statements of
2022 Company the Company.
Sun
Shengdi
an, Liu Approve the adjustment of
Fengxi, Conduct a review and compensation standards for
Li 11 potential adjustment of senior management personnel of
Remun Zheng, Februar the compensation of Konka Group and endorse the
eration Wang y 2022 senior management submission of the proposal for
and Shuguan personnel. review to the Company’s board
Apprais g, Deng 5 meeting.
al Chunhu
Commi a
ttee Sun Remunerations of directors,
Remunerations of
Shengdi supervisors and senior
28 directors, supervisors and
an, Liu management as disclosed in the
March senior management as
Fengxi, Company's 2021 Annual Report
2022 disclosed were audited.
Ye were true. Remunerations of
Xingbin, directors, supervisors and senior
55
Konka Group Co., Ltd. Annual Report 2022
Wang management as disclosed were
Shuguan consistent with the Company's
g, Deng salary management policy and no
Chunhu violation was found.
a
1. Conduct a review of
the performance The results of the performance
evaluation results of the evaluation of the Company’s
company’s management management team, the 2021
team. bonus plan for the Company’s
19 2. Review the 2021 bonus management team and the plan
Septem plan for the company’s for the settlement of the
ber management team. company’s total wage bill in
Wang 2022 2021 and budget for the
Shuguan 3. Review the payroll Company’s total wage bill in
g, Yao settlement plan for the 2022 were agreed to be submitted
Wei, Ye company’s 2021 total to the board meeting for
Xingbin, wage bill and the budget discussion.
Liu Jian, plan for the company’s
Deng 2022 total wage bill.
Chunhu Conduct a review of the
a Approve the submission of the
proposal to amend the
17 revised “Enterprise Leader
Enterprise Leader
October Performance Evaluation Method
Performance Evaluation
2022 for Konka Group Co., Ltd.” to
Method for Konka Group
the board meeting for discussion.
Co., Ltd. of the company.
Conduct a review of the Approve the submission of the
25 “2022 Performance 2022 Performance Responsibility
Novemb Responsibility Agreement Agreement for the Management
er 2022 for the Management Team of the Company to the
Team of the Company. board meeting for discussion.
It was agreed that Mr. Ye
Xingbin was nominated as a
candidate for non-independent
22 Selection of new directors
director of the Company's ninth
Februar for the ninth Board of
Board of Directors, and the
y 2022 Directors.
proposal would be submitted to
the board meeting of the
Sun
Company for deliberation.
Shengdi
Approve the appointment of Mr.
an, Liu
Lin Hongfan as the Vice
Fengxi,
23 May Appointment for the President of Konka Group and
Zhou
2022 position of Vice President endorse the submission of this
Bin,
proposal for discussion to the
Wang
company’s Board of Directors.
Shuguan
Approve the nomination of Mr.
g, Deng
Nomin Liu Fengxi, Mr. Yao Wei, Mr.
Chunhu
ation Zhou Bin, Mr. Liu Jian, Mr.
a 4
Commi Conduct a review of the Wang Shuguang, and Ms. Deng
ttee 28 June candidates for the Chunhua as candidates for the
2022 upcoming election of the 10th Board of Directors of the
Board of Directors. company, and endorse the
submission of this proposal for
review to the company’s Board
of Directors.
Liu Jian,
Yao
Wei, Approve the appointment of Mr.
Zhou Cao Shiping as the Executive
12 Appointment for the
Bin, Vice President of Konka Group
August position of Executive
Wang and endorse the submission of
2022 Vice President.
Shuguan this proposal for discussion to the
g, Deng Company’s Board of Directors.
Chunhu
a
56
Konka Group Co., Ltd. Annual Report 2022
VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its
supervision in the Reporting Period.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.
IX Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
1,755
at the period-end
Number of in-service employees of major subsidiaries at the
12,758
period-end
Total number of in-service employees at the period-end 14,513
Total number of paid employees in the Reporting Period 14,513
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 7,629
Sales 3,287
Technical 1,537
Financial 672
Administrative 1,388
Total 14,513
Educational backgrounds
Educational background Employees
Master and above 395
Bachelor 3,365
Junior college 3,903
High school and below 6,850
Total 14,513
2. Employee Remuneration Policy
The Company promulgated its remuneration system with the operating strategy of serving for the
enterprise development and enhancement, and the principle of deciding the remuneration according
to the post, business performance and capabilities, as well as the market competitiveness and
internal fairness. And it decided the employee’s remuneration level according to its business
earnings, the posts and fulfillment of the business performance of the employee.
3. Employee Training Plans
The Company adhered to the people-oriented and paid special attention to cultivate the talents.
Surrounded by the business development and the construction of talent team, the Company actively
organized and carried out various training activities, and continuously perfected its talents
cultivation system, as well as further enhanced the employee’s professional skills and overall quality,
57
Konka Group Co., Ltd. Annual Report 2022
so as to strengthen the construction of management talents, professional talents and technical talents
teams.
In 2022, the Company was driven to boost strategy and support businesses, and centered its superior
resources on the cultivation of crucial core talents. Focusing on the personnel training system of
"Three Tiers and Seven Brands", Konka open classes have been organized throughout the year for
all employees of the Company; and organized and carried out the new employee’s training &
cultivation projects respectively for the graduates from campus recruiting and personnel from social
recruitment. Meanwhile, it centralized to organize the pointed the training projects of general
management skills and post professional knowledge, etc for the personnel from marketing, R&D,
manufacturing, financial and human resources systems.
4. Labor Outsourcing
□ Applicable √ Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, was formulated, executed or
revised in the Reporting Period:
√ Applicable □ Not applicable
The cash dividend policy of the Company was clearly stated in its Articles of Association, with
specific and clear dividend standards and ratios. The relevant decision-making procedure and
mechanism were sound; the independent directors faithfully performed their duties and played their
due role; and the non-controlling interests were able to fully express their opinion and desire and
their legal rights and interests were fully protected. The Company strictly followed the cash
dividend policy in its Articles of Association, and the cash dividend payout of the Company was in
line with its Articles of Association and the relevant resolution of the Shareholders’ Meeting.
According to the requirements of the Listed Company Supervision Guideline No. 3-Listed
Companies’ Cash Dividend issued by the CSRC, the Company has revised the dividend payout
policy in its Articles of Association, further clarifying the priority and proportion of cash dividend
in dividend payouts. In order to further normalize its shareholder return mechanism, push forward
the establishment of a scientific, sustained and stable shareholder return mechanism, enhance the
transparency and operability of decision-making for its dividend payout policy, and effectively
protect the legal rights and interests of public investors.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and resolution of general meeting Yes
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and played their due role Yes
Non-controlling interests are able to fully express their opinion and desire and their legal
Yes
rights and interests are fully protected
In case of adjusting or changing the cash dividend policy, the conditions and procedures Yes
58
Konka Group Co., Ltd. Annual Report 2022
involved are in compliance with applicable regulations and transparent
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for
shareholders despite the facts that the Company has made profits in the Reporting Period and the
profits of the Company as the parent distributable to shareholders are positive.
□ Applicable √ Not applicable
Final Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
The Company has established and improved the Company's internal control system in accordance
with the regulations of the China Securities Regulatory Commission and the Shenzhen Stock
Exchange, following the basic principles of internal control, and on the basis of the Company's
actual situation. The Company's Financial Audit Committee, and Audit and Legal Affairs Center
follow the guidance of value management, seek the goal of strengthening risk management and
control, continuously enhance audit supervision and internal control evaluation, thereby scrutinizing
and evaluating the Company's internal control management. The Company's 2022 Annual Internal
Control Self-Assessment Report comprehensively, factually and accurately reflects the actual
situation of the Company's internal control. During the Reporting Period, the Company had no
major or significant deficiencies in its internal control.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Integration Countermeasur Settlement Follow-up
Subsidiary Integration plan Problem
progress es taken progress settlement plan
N/A N/A N/A N/A N/A N/A N/A
XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control self-evaluation report 28 March 2023
Index to the disclosed internal control self-evaluation report http://www.cninfo.com.cn/new/index
Evaluated entities’ combined assets as % of consolidated total assets 90.00%
Evaluated entities’ combined operating revenue as % of consolidated
90.00%
operating revenue
Identification standards for internal control weaknesses
59
Konka Group Co., Ltd. Annual Report 2022
Weaknesses in internal control not related to financial
Type Weaknesses in internal control over financial reporting
reporting
Those with the following characteristics should be
recognized as great defect: (1) found out there were
malpractices of the Directors, Supervisors and Senior
Executives of the Company that formed significant
influences on the financial report; (2) the Company
revised the published financial report and revised the
great misstatements caused by the malpractices or the
mistakes; (3) CPA found out there was great
misstatement of the current financial report while
didn’t found during the operating process of the The following signs indicated there may exist great
internal control; (4) the supervision of the internal defect among the internal control of the non-financial
control by the Finance Audit Committee and the report; (1) Negative media news appeared more
internal audit institution of the Company was invalid; frequently, causing greater damage to the Company's
(5) not yet revised the great defect after the reasonable reputation; (2) turnover of personnel in key positions
period as which was discovered among the internal was relatively serious; (3) there were obvious
control assessment; (6) the significant business lacked deficiencies in important business control systems; and
of systematic control or the systematic control was (4) important deficiencies identified in internal control
invalid.. Those with the following characteristics evaluations were not rectified in a timely manner.
Nature
should be recognized as significant defect: (1) not yet The following signs indicated there may exist
standard
chosen or applied the accounting polices according to significant defect among the internal control of the non-
the generally accepted accounting standards; (2) not financial report: (1) negative news occurred rather
yet constructed the anti-spam process or control frequently which caused rather big harm to the
measures; (3) as for the accounts disposal of the Company’s reputation; (2) the outflow of the key
unconventional or special transactions, there was no position personnel was rather serious; (3) there was
corresponding control mechanism or execution or the obvious defect among the control system of the
existence of the corresponding supplement control; (4) significant business; (4) the significant defect found
there was one or multiple defects during the control of among the internal control assessment not yet be revised
the compile of the financial report at the period-end in time.
and could not reasonable guarantee the statement of
the compiled financial report reach the real and
accurate target; (5) not yet revised the significant
defect after the reasonable period as which was
discovered among the internal control assessment. 3.
Other defects from the internal control hadn’t reached
the recognition standards of the great defect or
significant defect should be recognized as general
defect.
Great defect: potential misstatement amount≥1% of the
gross profit margin of the 2022 consolidated financial
report of the Company; significant defect: 0.5% of the
gross profit margin of the 2022 consolidated financial
Quantitativ report of the Company ≤potential misstatement amount Implement in accordance with the quantitative criteria of
e standard ＜ 1% of the gross profit margin of the 2022 internal control defect evaluation in financial statements
consolidated financial report of the Company; general
defect: potential misstatement amount ＜ 0.5% of the
gross profit margin of the 2022 consolidated financial
report of the Company.
Number of material weaknesses in
0
internal control over financial reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in
0
internal control over financial reporting
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Konka Group Co., Ltd. Annual Report 2022
Number of serious weaknesses in
internal control not related to financial 0
reporting
2. Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We considered that, in all the significant aspects, Konka Group maintained efficient internal control of the financial report
according to the C-SOX and the relevant regulations on 31 December 2022.
Disclosure of such report Disclosed
Disclosure date 28 March 2023
Index to such report disclosed http://www.cninfo.com.cn/new/index
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to financial
None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s
report on the Company’s internal control.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control
is consistent with the internal control self-evaluation report issued by the Company’s Board.
√ Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
The Company has completed the self-inspection in accordance with the relevant requirements of the
CSRC and rectified the problems identified in the self-inspection.
61
Konka Group Co., Ltd. Annual Report 2022
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major
polluter by the environmental protection authorities.
√ Yes □ No
Policies and industry standards pertaining to environmental protection
The Company abides by environmental protection laws and regulations, such as the Environmental
Protection Law of the People’s Republic of China, Water Pollution Prevention and Control Law of
the People’s Republic of China, Air Pollution Prevention and Control Law of the People’s Republic
of China, Noise Pollution Prevention and Control Law of the People’s Republic of China, Solid
Waste Pollution Prevention and Control Law of the People’s Republic of China, and others. The
water pollutant discharge standards include the Emission Standard of Water Pollutants for
Electroplating DB44/1597-2015 and the Water Pollutant Discharge Limit Standard of Guangdong
Province DB44/26-2001. The air pollutant emission standards include the Emission Standard of
Volatile Organic Compounds for Printing Industry DB44/27-2001, Emission Standard of
Electroplating Pollutants GB21900-2008, Emission Standard of Odorous Pollutants GB14554-93,
and Emission Control Standard of Volatile Organic Compounds for Unorganized Emissions
GB37822-2019.
Status of Environmental Protection Administrative License
1. XingDa HongYe
XingDa HongYe received approval from the Zhongshan Environmental Protection Bureau to
establish and construct its facility in 2004 (ZH.H.J. [2004] No. 61), followed by subsequent
approvals under ZH.H.J.D. [2008] 06250 and ZH.H.J.D. [2010] 04469 in 2008 and 2010
respectively. After the original project of XingDa HongYe was put into production, it underwent
two acceptance stages: the first stage in 2008 (H.Y [2008] 02) and the second stage in 2012
(ZH.H.Y. Report [2012] 000092).
Xingda Hongye enlisted the services of the Zhongshan Environmental Protection Science Research
Institute in December 2012 to perform an environmental impact evaluation for their proposed
technological upgrade and expansion initiative. Following this, on 31 December 2012, the
Environmental Protection Bureau of Zhongshan City granted No. ZH.H.J.SH. (2012) 115 Approval
on the Environmental Impact Assessment Report for Technological Upgrade and Expansion
Program of GuangDong XingDa HongYe Electronic Co., Ltd. The scheme allowed for an increased
production of six-layer circuit boards, eight-layer and above circuit boards, and HDI boards, while
reducing the production of single-sided circuit boards. After the completion of the technological
upgrade and expansion, the production capacity was expected to reach a total of 200,000 square
meters for single-sided circuit boards per year, 250,000 square meters for double-sided circuit
62
Konka Group Co., Ltd. Annual Report 2022
boards per year, 300,000 square meters for four-layer circuit boards per year, 200,000 square meters
for six-layer circuit boards per year, 150,000 square meters for eight-layer and above circuit boards
per year, and 100,000 square meters for HDI boards per year. The technical renovation and
expansion project maintained the original plating equipment and process unchanged and added a
browning process to the existing production process. The additional plating capacity was all
outsourced. The technical renovation and expansion project began construction in 2013, was
completed in January 2018, and was commissioned from 10 February to 8 July 2018. The
construction of the expansion project met the requirements of the environmental impact report
approval and the conditions for environmental protection acceptance of the completed construction
project. In 2021, the national pollutant discharge permit of XingDa HongYe was renewed/replaced
with certificate number 91442000768405216J001P. In 2022, the national pollutant discharge permit
was changed, with certificate number 91442000768405216J001P.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka Precision Technology Co., Ltd. was approved by the Huizhou Environmental
Protection Bureau in 2000 (H.S.H.J. [2000] No.23) and began production the same year. Its
pollution discharge permit number is 91441322721121283N001U.
Boluo Konka enlisted the services of Huizhou Environmental Science Research Institute in January
2007 to carry out an environmental impact assessment for its expansion project. No. H.SH.H.J.
[2007] J32 Approval on Environmental Impact Report for Boluo Konka’s Double-sided and
Multilayer Board Project was issued by the Environmental Protection Bureau of Huizhou City on 8
February 2007. The approved expansion project included the installation of electroplating
equipment and processes, allowing for an increase in production capacity to 1 million square meters
for single-sided circuit boards per year and 650,000 square meters for double-sided and multilayer
circuit boards per year. Upon completion, the project underwent an environmental protection
acceptance inspection, satisfying the requirements of the environmental impact assessment approval.
The company also obtained a pollutant discharge permit in the same year and underwent a name
change to Boluo Konka Precision Technology Co., Ltd.. In 2020, the company received a national
pollutant discharge permit bearing certificate number 91441322799316208F001V.
The regulations for industrial emissions and the particular requirements for controlling pollutant
emissions those are associated with production and operational activities.
Num
Distrib Exc
ber
Name Type of Way ution essi
Name of of Discharge Discharge Total Approved
of major of of ve
major disch concentration/inte standards disch total
pollut polluta disch dischar disc
pollutants arge nsity implemented arge discharge
er nts arge ge harg
outle
outlets e
ts
Xing Pollutio PH, total Disch Main PH 6-9; total GB 21900- 0.448 Total
Non
Da n copper, arge 1 dischar copper≤0.3mg/L; 2008 Discharge 5 discharge
e
Hong sources COD, of ge COD≤50mg/L; Standard For millio 448,500
63
Konka Group Co., Ltd. Annual Report 2022
Ye of ammonia statio outlet ammonia Pollutants n tons/year;
waste nitrogen, nary of the nitrogen≤8mg/L; From tons/y pollutant
water total pollut waste total Electroplating ear COD
nitrogen, ion water nitrogen≤15mg/L 19.061250
total sourc station ; total tons/year;
phosphor es phosphorus≤0.5m ammonia ni
us, total g/L; total trogen
cyanide, cyanide≤0.2mg/L 3.0498
total ; total tons/year;
nickel, nickel≤0.1mg/L; total
total iron, total iron≤2mg/L; nitrogen
total total 32.9792
aluminum aluminum≤2mg/L tons/year;
, ; total
petroleum petroleum≤2mg/L phosphorus
, ; suspended 0.2082
suspende solids≤30mg/L tons/year
d solids
Emission
Standard for
Electroplating Total
Pollutants discharge:
GB21900-2008 2,986,560,0
Air Emission 00 standard
Sulfuric sulfuric acid
Limits Table 5, cube/year
acid fume≤30mg/m3;
Emission (note: the
fume, nitrogen
Three standard of total
hydrogen oxide≤200mg/m3
on the Volatile discharge is
chloride, ; hydrogen
roof of Organic not stated
formalde chloride≤30mg/m
Disch plant Compounds for in the latest
hyde, 3; hydrogen
arge 1, ten Printing 2,986, version of
hydrogen cyanide≤0.5mg/m
of on the Industry 560,0 national
Xing Waste cyanide, 3;
statio roof of DB44/815- 00 discharge
Da gas nitrogen TVOC≤90mg/m3 Non
nary 14 plant 2 2010; stand permit in
Hong polluta oxide, ; e
pollut and Guangdong Air ard 2021; two
Ye nts ammonia, benzene≤1mg/m3
ion one on Pollutant cube/ exhaust
benzene, ;
sourc the Emission year towers
toluene+x toluene+xylene≤1
es roof of Standard were added
ylene, 5mg/m3; tin and
the DB44/27-2001 in 2021;
TVOC, its
cantee the Second calculated
tin and its compounds≤8.5m
n Level Standard based on
compoun g/m3;
in the Second air volume
ds, PM(dust)≤120mg
Period, in
PM(dust) /m3
Emission environme
standard for ntal impact
Odor Pollutants assessment
(GB 14554- )
1993) Table 2
Standard
PH, Disch 1. Emission 1. Discharge 318,3 Total
Main
Boluo copper, arge standard for standard of 00 discharge
Pollutio dischar
Konka COD, of pollution discharge tons/y amount is
n ge
and ammonia statio discharge permit: ear 318,300
sources outlet Non
Boluo nitrogen, nary 1 certificate: Discharge Note: tons/year;
of of the e
Konka total pollut copper≤0.5mg/L; Standard of accor COD is
waste waste
Precis nitrogen, ion COD≤80mg/L; Electroplating ding 25.464
water water
ion total sourc ammonia Water Pollutant to tons/year;
station
phosphor es nitrogen≤10mg/L for disch ammonia
64
Konka Group Co., Ltd. Annual Report 2022
us ; total Electroplating arge nitrogen is
nitrogen≤20mg/L DB44/1597- permi 4.775
; total 2015 Table 1 t tons/year;
phosphorus≤0.5m Pearl River total
g/L; 2. local Delta nitrogen is
emission Discharge 4.8
standard: Standard; tons/year.
copper≤0.5mg /L; Water Pollutant Note:
COD≤30mg/L; Discharge according
ammonia Limit Standard to the
nitrogen≤1.5mg/ of Guangdong discharge
L; total Province certificate
nitrogen≤10mg/L DB44/26-2001;
; total 2. Local
phosphorus≤0.3m discharge
g/L standard:
BFBH [2019]
No. 58
Document:
COD, ammonia
nitrogen, total
phosphorus
based on
"Environmenta
l Quality
Standards for
Surface Water
GB3838-2002
" Category IV
water standard,
the total
nitrogen
discharge
reaches 50% of
discharge limit
requirement of
the
corresponding
industry
Sulfuric sulfuric acid Emission
acid fume≤30mg/m3 Standard for
fume, Six on ；nitrogen Electroplating
hydrogen the oxide≤200mg/m3 Pollutants
chloride, roof of ；hydrogen GB21900-2008
formalde Disch plant chloride≤30mg/m Air Emission The total
Boluo hyde,hydr arge 1, 3；TVOCogen Limits Table 5, discharge is
Konka ogen of fourtee chl；benzenen Guangdong Air not stated
and Waste cyanide, statio n on chlori； Pollutant in the latest
Non
Boluo gas poll nitrogen nary 20 the methylbenzenorid Emission / version of
e
Konka utants oxide, pollut roof of e≤30； Standard national
Precis ammonia, ion plant 2 dimethylbenzene DB44/27-2001 discharge
ion benzene, sourc and de≤30mg/；tin the Second permit in
methylbe es one in and its Level Standard 2020
nzene, sewag compounds≤8.5m in the Second
TVOC, e g/m3；PM Period,
tin and its station （dust）≤≤stand Emission
compoun i；oil standard for
ds, PM fume≤2mg/m3 Odor Pollutants
65
Konka Group Co., Ltd. Annual Report 2022
(dust), oil (GB 14554-
fume 1993) Table 2
Standard,
Emission
standard of
cooking fume
(GB18483-
2001)
Treatment of pollutants
1. XingDa HongYe
All production equipment of Guangdong Xingda Hongye Electronics Co., Ltd. has been set up with
supporting environmental protection facilities according to the requirements of environmental
impact assessment. The discharge of wastewater, waste gas and noise as well as the disposal of all
solid wastes in the Company all met the standards during the Reporting Period.
The sewage treatment centre of Guangdong Xingda Hongye Electronics Co., Ltd. with an
investment of about RMB15 million was formally put into production in June 2007, and the
treatment capacity of the sewage treatment facility was 2,566 tons/day. After technical
improvement and expansion, the capacity increased to 2,900 tons/day with the treatment process
remaining unchanged. In 2022, RMB20 million was invested to increase a set of sewage treatment
facility which had been put into operation so as to ensure stable discharge of sewage up to standard.
Currently, the sewage treatment facilities are functioning well and the main pollutant discharge
meets the discharge standards and environmental assessment standards. The pollutants are
discharged to Fushachong after being treated at the self-built sewage treatment station.
2. Boluo Konka and Boluo Konka Precision
All production equipment of Boluo Konka and Boluo Konka Precision has been reported for
environmental assessment, review and approval. The supporting environmental protection and
pollution control facilities have been designed by pollutant type and concentration and effectively
operated in a targeted manner. During the Reporting Period, the discharge standards were met in
terms of industrial waste water, exhaust and factory noise, and all industrial waste generated was
disposed of in compliance with environmental laws and regulations.
Boluo Konka was established in 2000. To manufacture single sided PCBs, it invested
approximately RMB 5 million in constructing a sewage treatment station without the biochemical
treatment function and featuring a discharge capacity of 300 tons per day. In 2007, Boluo Konka
expanded its factory by starting the Phase II project, which was submitted for environmental
assessment as Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project
owner was changed into Boluo Konka Precision). It spent about RMB 10 million on constructing
the Phase II sewage treatment station to add the biochemical treatment function with a discharge
capacity of 800 tons per day.
In 2019, according to the requirements in the documents issued by Boluo County Ecology and
66
Konka Group Co., Ltd. Annual Report 2022
Environment Bureau, the two sewage treatment stations of Boluo Konka and Boluo Konka
Precision must be upgraded towards higher standards. Through comprehensive assessment of the
professional environmental protection company, it was decided that the sewage treatment stations
of the said companies be combined to meet the upgrading requirements. Boluo County Ecology and
Environment Bureau approved the combination of the discharge outlets of the aforementioned
companies, and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the
combination, the discharge capacity would reach 1,100 tons per day. The aforementioned
companies spent about RMB 20 million between 2019 and 2020 on upgrading the sewage treatment
stations towards higher standards, and added industrial advanced processes and treatment systems,
such as RO water treatment, Fenton oxidation and MBR films. After the technological
improvements and expansion, the sewage treatment reaches 2,200 tons per day (with a discharge
capacity of 1,100 tons per day) with a reuse rate of more than 60%. At present, the waste water
treatment facilities are operating in good conditions; the discharge of major pollutants meets the
discharge standards. After advanced treatment of the water reuse facilities, the water treated by the
sewage stations that meets the standards will be reused in the plants, while the remaining water will
be discharged to the municipal pipe network to be processed by the urban and rural water treatment
factory before being discharged to the Dongjiang River.
Environmental self-monitoring plan
1. XingDa HongYe
According to the requirements of the Environmental Protection Administration, Xingda Hongye
attaches great importance to environmental monitoring management. Thus, pursuant to the
Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises,
the Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co., Ltd. and the reply opinions for environmental impact
assessment, the Company has formulated the Environmental Self-Monitoring Plan and reported to
the municipal environmental protection bureau for approval and record. It implements online
monitoring for the PH, COD and ammonia nitrogen pollutants discharged in wastewater through
real-time monitoring and an automatic frequency of every two hours, entrusts the qualified third-
party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment, and
entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring.
All self-monitoring plan results will be reported and disclosed on public platforms on a periodic
basis.
In the case of normal production, the results will be updated on a daily basis, with online
monitoring data disclosed in real time and manual monitoring data disclosed on the Real time
publicity or every 2 hours after completion. Items monitored on a monthly basis will be disclosed
67
Konka Group Co., Ltd. Annual Report 2022
by the 10th day of the month. In the case of public holidays, the operation monitoring data for the
holiday period will be disclosed on the first working day after the holiday. The annual self-
monitoring report for the previous year will be disclosed at the end of January each year. In the case
of shutdown with days off, the number of days off will be indicated in the information bar and
related proofs will be submitted to the monitoring center of the municipal environmental bureau for
record. The results are disclosed on Guangdong Province Key Pollution Source Regulatory
Information Platform and on National Pollution Source Monitoring Information Management and
Sharing Platform for public monitoring.
Contingency plan for emergent environmental incident
1. XingDa HongYe
In strict accordance with requirements of laws, regulations and relevant documents, such as Law of
the People’s Republic of China on Emergency Response and Interim Measures on Environmental
Emergency Response Plan, Guangdong Xingda Hongye Electronics Co., Ltd. has established risk
prevention measures and emergency response plans, kept its emergency equipment in a normal state,
formulated the Contingency Plan for Emergent Environmental Incident, and put on records at
Zhongshan Environmental Protection Bureau, Guangdong Province, record No.: 4420002017044M.
In addition, the Company conducts a drill of major environmental pollution incident on its factory
to enhance its emergency response capabilities for emergent environmental pollution incidents.
Furthermore, Guangdong Xingda Hongye Electronics Co., Ltd. has built an emergency pool (which
is the comprehensive water tank in the sewage treatment station covering an area of 800m3) and set
up a fire pool (500m3 and located on Floor 1 of Factory Building No. 2), which serve as temporary
storage pools for exterior drainage or fire drainage to eradicate accidental discharge of wastewater
in the case of failed operation of the sewage transmission pipeline or fire accident due to outage or
other special circumstances. The sewage transmission pipeline has been equipped with anti-
corrosion and cathodic protection using anti-corrosion pipes and carbon steel pipes. Pursuant to the
new discharge standards, the related discharge pipeline has been modified and the production
department has been required to discharge strictly in accordance with discharge standards to cut the
costs of wastewater treatment. Different types of wastewater are normally and properly treated
through fine shunting. Personnel have been specially arranged to manage the chemical liquid
warehouse and exert reasonable control and requirements over the liquid discharge by the plant and
timely transportation of the liquid by suppliers; emergency tools such as protective masks, boots
and immiscible pumps have been equipped.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the
People's Republic of China, Interim Measures for the Management of Emergency Plans for
Unexpected Environmental Incidents, other related laws and regulations as well as the requirements
68
Konka Group Co., Ltd. Annual Report 2022
of relevant documents. They have established risk prevention measures and emergency plans, such
as Emergency Plan for Unexpected Environmental Incidents, and have their emergency equipment
run in a normal status. In addition, they have filed with Boluo County Branch of Ecology and
Environment Bureau in Huizhou, Guangdong and Huizhou Ecology and Environment Bureau
respectively with the file No. 441322-2020-0073-M and 441301-2021-004-M. They organize all
staff to conduct drills for major environmental pollution incidents every year to improve their
ability for the emergency response to unexpected environmental pollution incidents.
Boluo Konka and Boluo Konka Precision are well equipped with all necessary facilities for
emergency response to unexpected incidents, including an emergency response pool of industrial
waste water (500m3, under the ground of the sewage treatment station) and a firefighting reservoir
(300m3, located beside the staff dormitory building). In the event of an unexpected environmental
incident, such as leakage or failure of a waste water transporting pipe, the emergency response pool
will prevent any accident of industrial waste water; in the event of a fire safety accident, the
firefighting reservoir will be put into use. All departments are required to discharge pollutants
strictly in accordance with pollutant discharge standards to reduce the costs of waste water
treatment by properly and reasonably dividing solution and waste water discharged from the plants.
The chemical warehouses are managed by designated personnel, with standard control and
requirements over the loading and unloading of chemical products by suppliers. In terms of
emergency response supplies, a full set of emergency rescue tools are prepared, including gas masks,
acid and alkaline resistant boots, gloves, goggles, safety ropes, helmets, fire sand and submersible
pumps.
Input in environmental governance and protection and payment of environmental protection tax
Nearly RMB37 million was input in environmental governance and protection and RMB32,700 of
environmental protection tax was paid in 2022 in total.
Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□ Applicable √ Not applicable
No administrative punishments were received in the Reporting Period due to environmental issues.
Impact of production Rectification
Subsidiary Reason for punishment Violations Penalty results
and operation measures
N/A N/A N/A N/A N/A N/A
Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co., Ltd. for
2022 was approximately RMB22 million, mainly used for the investment in Environmental
governance equipment and facilities, treatment of sewage, waste gas and solid waste, as well as the
maintenance and upgrading of environmental protection equipment.
2. Boluo Konka and Boluo Konka Precision
69
Konka Group Co., Ltd. Annual Report 2022
Boluo Konka and Boluo Konka Precision invested approximately RMB15 million on environmental
protection in 2022 in total, mainly used for the upgrading and transformation of the sewage
treatment system, investments in reclaimed water reuse system, update and daily operation &
management of waste gas treatment system and maintenance and renewal of equipment.
Other Environmental Information.
According to the examination by the Company, the Company and its other holding subsidiaries are
not key pollutant units. All have faithfully implemented the laws and regulations related to
environmental protection, such as Environmental Protection Law of the People's Republic of China,
Water Pollution Prevention and Control Law of the People's Republic of China, Law of the People's
Republic of China on the Prevention and Control of Atmospheric Pollution, Law of the People's
Republic of China on Prevention and Control of Pollution From Environmental Noise, Law of the
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Waste in the daily production and operation, without being punished for violations of laws and
regulations during the Reporting Period.
II Social Responsibility
The Company insists the principle of health, stability and sustainable development to benefit
shareholders and employees and satisfy customers. In pursuit of economic profits and protection of
shareholders’ profits, the Company is active in protecting legal rights of debtors and employees,
treating suppliers, customers and consumers in good faith, and participating in environmental
protection and community establishment for harmonious development of the Company and society.
1. To protect rights of shareholders and creditors
(1) The Company protects rights of shareholders
The Company insists protection of rights for all shareholders, especially equal status and legal
rights for medium and small shareholders, and make insurance of rights to be informed,
participation and vote.
The Company would perform all obligations of information disclosure to ensure timely, accurate
and complete information and strictly execute confidential system of registrar and insider
information to guarantee justice.
The Company pays attention to repay to shareholders, and insists mutual development with
investors. In the previous three years, the Company shares dividends with all shareholders. The
Company strict executes dividend policies regulated in Articles of Association. All cash dividends
comply with regulations in Articles of Association and requirements in shareholders’ conference.
(2) The Company protects rights of creditors
In full consideration of legal rights of creditors, the Company complies with strict business rules of
credit cooperation to guarantee legal rights of creditors. No damages upon rights of creditors
happened.
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Konka Group Co., Ltd. Annual Report 2022
2. The Company performs responsibilities to suppliers and customers
(1) It is devoted to improve customer service quality.
The Company is insisting philosophy of customer orientation to strengthen customer service
management, service consciousness for employees, service levels and to protect rights for
customers. Through customer service hot-line, field visit and follow-up service, the Company has
set a good corporate image for customers.
(2) Be honest to suppliers
Following the principle of integrity and mutually beneficial cooperation, the Company keeps good
cooperative relations with suppliers at each level. The corporate principle is open, fair and impartial
to standardize procurement, protect suppliers’ legal rights and lay solid foundation for further
cooperation.
3. Be enthusiastic to social and public welfare undertakings
Based on the principle of appreciating and repaying the society, the Company has participated in all
kinds of activities for public welfare, cooperated with society, undertaken social responsibilities
actively and promoted harmonious development between enterprise and society.
4. Be responsible for employees
The Company insists the principle of people orientation to improve working environment, promote
occupational skills, provide opportunity and platform for development and growth and encourage
self upgradation and realization for employees. Mutual improvement for employees and enterprise
could be achieved.
(1) Be honest and law-abiding to protect legal rights for employees
The Company would strictly comply with laws and regulations in Labor Law and Labor Contract
Law to sign labor contract with employees with fair treatment in employment, payment, promotion,
training, demission and retirement. Also, the Company would pay all kinds of insurances and
housing fund for employees. Regular physical examination would be organized for each year. Any
problems found would require re-examination and consultation from a doctor.
The Company would improve living quality; enhance cohesive force and sense of belongings
through a series of safeguard measures.
(2) To protect occupational health for employees
The Company would establish and perfect training, safety assessment by security system to
guarantee the safety and occupational health for employees. On the other hand, by promotion of the
importance of safety, safety awareness would be rooted in the heart to make all employees abide by
safety standards and fully play subjective initiative in protecting self-occupational safety and
production safety.
(3) To promote occupational skills by diversified professional training
The Company has always paid great attention on diversified training for employees. On the one
71
Konka Group Co., Ltd. Annual Report 2022
hand, the Company would be meticulous in training of regular business and occupational skills and
carry out all requirements positively to improve professional levels by normal training management.
On the other hand, the Company would establish methods of self-training platform, training
instructor, theme training and lectures to provide colorful training activities. Besides the work,
professional and comprehensive quality would be fully promoted.
5. Be responsible for environment
The Company concerns about environmental changes and close relationships with environment by
creating low carbon economy in technical innovation, from green manufacturing, green products to
green industry circular economy. The Company would provide efforts in protecting global
ecological environment. In June 2012, subsidized products catalogue had been released jointly by
National Development and Reform Commission, Ministry of Industry and Information and Ministry
of Finance.
Subsequently, the Company would undertake all social responsibilities by improving strategic
management, sustainable development and enterprise economic efficiency. It would reattribute all
shareholders and would protect legal rights for creditors and employees. To be honest to suppliers
and customers, the Company would serve local economic development and participate in social
public welfare activities and environment protection. It would undertake all responsibilities in many
fields and make attributions to social, economic, and environmental sustainable development for a
socialism harmonious society.
III Consolidation and Expansion of Poverty Alleviation Outcomes, and Rural Revitalization
In 2022, the Company continued to actively purchase the agricultural and side-line products from
Tianzhu and Sansui counties in Guizhou Province under the "assistance by consumption" project,
and cumulatively purchased local agricultural products worth RMB0.25 million this year. In the
early days of 2022, Konka Group made a valiant decision to choose 100 “dream partners” from
within to provide personalized educational aid to impoverished pupils in the counties of Tianzhu
and Sansui in Guizhou. In an effort to fully embrace the national policy of targeted education
assistance, the organization diligently executed precise measures and initiatives. A comprehensive
policy and support system geared towards the eradication of educational poverty were established,
encompassing all students with economic disadvantages, from those enrolled in compulsory
education to those attending vocational schools and higher education institutions. Remarkably, the
company’s rate of assistance to pupils registered under the national poverty alleviation program
reached an astounding 100%.
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Konka Group Co., Ltd. Annual Report 2022
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s De Facto Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Where there Had Been an Earnings Forecast for an Asset or Project and the Reporting
Period Was still within the Forecast Period, Explain why the Forecast Has Been Reached
for the Reporting Period.
□ Applicable √ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
on the Financial Statements
□ Applicable √ Not applicable
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□ Applicable √ Not applicable
VI YoY Changes to Accounting Policies, Estimates or Correction of Material Accounting
Errors
□ Applicable √ Not applicable
VII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
Please refer to 6. Changes in the Scope of Consolidated Financial Statements for the Reporting
Period of 2. Revenue and Costs of IV Core Business Analysis in Part III Operating Performance
Discussion and Analysis of this Report for details.
73
Konka Group Co., Ltd. Annual Report 2022
VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor ShineWing Certified Public Accountants LLP
The Company’s payment to the domestic independent auditor
220
(RMB’0,000)
How many consecutive years the domestic independent auditor
4 years
has provided audit service for the Company
Names of the certified public accountants from the domestic
Tang Qimei, Liu Lihong
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
2 years ,1years
have provided audit service for the Company
Name of the overseas independent auditor (if any) N/A
The Company’s payment to the overseas independent auditor
0
(RMB’0,000) (if any)
How many consecutive years the overseas independent auditor
N/A
has provided audit service for the Company (if any)
Names of the certified public accountants from the overseas
independent auditor writing signatures on the auditor’s report N/A
(if any)
How many consecutive years the certified public accountants
N/A
have provided audit service for the Company (if any)
Indicate by tick mark whether the independent auditor was changed for the Reporting
Period
□ Yes √ No
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
The Company appointed ShineWing Certified Public Accountants LLP as the internal control
auditor in 2022 with RMB0.7 million of payment for the internal control audit.
IX Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
X Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Major Legal Matters
Invol
ved
Index to
amo Discl
Provis Decisions and Execution of disclosed
General information unt Progress osure
ion effects decisions informati
(RM date
on
B’0,
000)
Because of a dispute over a The case The case has
purchase and sales contract, has entered the 19 http://ww
the Company's subsidiary, 3,13 entered execution phase. The case is in Septe w.cninfo.
No
Konka Huanjia Environmental 7.20 the Based on the execution. mber com.cn/n
Technology Co., Ltd., sued executio principle of 2020 ew/index
Dalian Guangxin n phase. prudence, the
74
Konka Group Co., Ltd. Annual Report 2022
Environmental Protection Company has
Equipment Technology accrued
Development Co., Ltd., corresponding
requiring the latter to return impairment reserves
equipment payment already in accordance with
made and pay liquidated accounting policies.
damages.
The Company won
As the bills held by the
and the case is in
Company failed to be paid
execution. Based on
upon maturity, the Company The case
the principle of
filed a lawsuit with the court, has 19 http://ww
prudence, the
requesting the latter to order 20,0 entered The case is in Septe w.cninfo.
No Company has
Wuhan Jialian Agricultural 00 the execution. mber com.cn/n
accrued
Technology Development Co., executio 2020 ew/index
corresponding
Ltd. to pay the aforesaid bills n phase.
impairment reserves
and corresponding interest to
in accordance with
the Company.
accounting policies.
The second instance
Because of a dispute over a has been concluded.
purchase and sales contract, Based on the
The
Wumart Stores, Inc. sued the principle of
second http://ww
Beijing Branch of the prudence, the 25
1,78 instance The judgment has w.cninfo.
Company to the People's No Company has June
3.07 has been been fulfilled. com.cn/n
Court of Shijingshan District accrued 2019
conclude ew/index
in Beijing, requiring the corresponding
d.
Beijing Branch to return the impairment reserves
prepayment for goods. in accordance with
accounting policies.
The judgment has
Because of a dispute over
been fulfilled.
loan, the Company's
Based on the
subsidiary, Anhui Konka
principle of
Electronic Co., Ltd., applied The 19 http://ww
prudence, the
for arbitration with Chuzhou 2,14 judgment The judgment has Septe w.cninfo.
No Company has
Arbitration Commission, 1.50 has been been fulfilled. mber com.cn/n
accrued
requiring the respondent, fulfilled. 2020 ew/index
corresponding
Makena Electronic (Shenzhen)
impairment reserves
Co., Ltd., to assume the
in accordance with
guarantee responsibility.
accounting policies.
The case has
Because of a dispute over a
entered the
contract, the Company filed a
execution phase.
lawsuit with Zhengzou
The case Based on the
Intermediate People's Court,
has principle of 19 http://ww
requiring Henan Radio and
3,90 entered prudence, the The case is in Septe w.cninfo.
Television Network Co., Ltd. No
4.90 the Company has execution. mber com.cn/n
to take delivery of goods,
executio accrued 2020 ew/index
make payment for goods, and
n phase. corresponding
pay interest and liquidated
impairment reserves
damages according to the
in accordance with
contract.
accounting policies.
Because of a dispute over a
logistics contract, Hefei
Anluda Logistics Co., Ltd.
sued the Company's
subsidiary, Anhui Konka
Tongchuang Electrical The 19 http://ww
Appliances Co., Ltd. with the 1,28 retrial The retrial has been The judgment has Septe w.cninfo.
No
people's court of Nanqiao 2.8 has been decided. been fulfilled. mber com.cn/n
District, Huzhou, requiring it decided. 2020 ew/index
to return the performance
bond, pay the transportation
fee that's already incurred and
interest, as well as undertake
the legal cost.
As a result of contractual 15,4 No The case The Company won The case is in 30 http://ww
75
Konka Group Co., Ltd. Annual Report 2022
disputes, Shenzhen Konka 53.4 has and the case is in execution. Nove w.cninfo.
Unifortune Technology Co., 4 entered execution. Based on mber com.cn/n
Ltd., a subsidiary of the the the principle of 2021 ew/index
Company, has initiated legal executio prudence, the
proceedings against Shenzhen n phase. Company has
Yaode Technology Co., Ltd., accrued
Dongsheng Xinluo corresponding
Technology (Shenzhen) Co., impairment reserves
Ltd., Shenzhen Hongyao in accordance with
Dingsheng Investment accounting policies.
Management Limited
Partnership, Shenzhen
Xiangrui Yingtong Investment
Management Limited
Partnership, Luo Jingxia, Luo
Zongwu, Luo Zongyin, Luo
Zaotong, and Luo Saiyin,
seeking restitution for goods
received and claiming
damages for breach of
contract.
On account of the
infringement of the
Company’s trademark rights
and the practice of unfair
competition, a lawsuit has
been instituted by the
The case
Company against Xinshang
has 30 http://ww
Electronics Co., Ltd., located The Company won
3,00 entered The case is in Nove w.cninfo.
in Fu’an City, as well as No and the case is in
0 the execution. mber com.cn/n
Fujian Zhaoguan Industry and execution.
executio 2021 ew/index
Trade Co., Ltd., Jinhua
n phase.
Kangjia Medical Equipment
Factory, and Wang Jun,
seeking an injunctive order to
halt the infringement, and
claiming compensation for any
incurred losses.
As a result of a dispute arising
from a share buyback, the
Company has initiated legal
The
proceedings against Luo
Compan
Zaotong, Luo Jingxia, Luo An application has 30 http://ww
24,8 y won
Zongyin, Luo Zongwu, and been made to the Nove w.cninfo.
75.2 No and the The Company won.
Shenzhen Yaode Technology court for mber com.cn/n
2 judgment
Co., Ltd. The lawsuit seeks an enforcement. 2021 ew/index
has taken
injunctive order to compel the
effect.
defendants to pay the share
buyback amount, as well as
any applicable interest.
Because of a dispute over a
contract, Makena Electronic
(Shenzhen) Co., Ltd. filed a The
lawsuit with the court, plaintiff 1 http://ww
The plaintiff has The plaintiff has
requiring the Company and 2,66 has Dece w.cninfo.
No withdrawn the withdrawn the
the Company's subsidiary, 2.43 withdraw mber com.cn/n
lawsuit. lawsuit.
Shenzhen Konka Electronics n the 2021 ew/index
Technology Co., Ltd., to make lawsuit.
payment for goods and pay
interest for overdue payment.
As a result of a dispute arising
The case
from a third-party objection to
is being 24 http://ww
execution, Konka Huanjia 11,2 The case is being
heard in Nove w.cninfo.
Environmental Technology 92.7 No heard in the second The case is in trial.
the mber com.cn/n
Co., Ltd., a subsidiary of the 3 trial
second 2022 ew/index
Company, has instituted legal
trial
proceedings against Fuxin
76
Konka Group Co., Ltd. Annual Report 2022
Bank Co., Ltd. and Huanjia
Group Co., Ltd., seeking an
order from the court to affirm
the plaintiff’s ownership of the
goods and to exclude the
defendant’s execution
As a result of a dispute arising
from a third-party objection to
execution, Konka Huanjia
Environmental Technology
Co., Ltd., a subsidiary of the The case
Company, has instituted legal is being 24 http://ww
The case is being
proceedings against Fuxin 9,24 heard in Nove w.cninfo.
No heard in the second The case is in trial.
Bank Co., Ltd. and Dalian 3.37 the mber com.cn/n
trial
Jinjia Materials Recycling Co., second 2022 ew/index
Ltd., seeking an order from the trial
court to affirm the plaintiff’s
ownership of the goods and to
exclude the defendant’s
execution
Due to a dispute arising from a
third-party objection to
execution, Konka Huanjia
Environmental Technology
Co., Ltd., a subsidiary of the
Company, has instituted legal
proceedings against Fuxin
The case
Bank Co., Ltd., Dalian
is being 24 http://ww
Jinkaisxuan Renewable The case is being
3,57 heard in Nove w.cninfo.
Resource Acquisition Chain No heard in the second The case is in trial.
3.17 the mber com.cn/n
Co., Ltd., Dalian Yingtai Paper trial
second 2022 ew/index
Co., Ltd., Dalian Zhanhong
trial
Renewable Resource
Recycling Co., Ltd., and Wang
Jinping, seeking an order from
the court to affirm the
plaintiff’s ownership of the
goods and to exclude the
defendant’s execution
Note: Courts or arbitration bodies ruled in favor of the Company in the following cases which are currently under enforcement. Details of these cases
can be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2019-63), the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97), the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48), the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101), the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89) and the Company's periodic reports: 1. As matured notes
were failed to be accepted, the Company has filed a lawsuit with the court to request China Energy Electric Fuel Co., Ltd., China Energy (Shanghai)
Enterprise Co., Ltd.., Shanghai Nengping industrial Co., Ltd., and Shenzhen Qianhai Baoying Factoring Co., Ltd. to pay the bill and the
corresponding interest to the Company; 2. As matured notes were failed to be accepted, the Company has filed a lawsuit with the court to request
Shanghai Huaxin International Group Co., Ltd. and Tianjin International Trade Petrochemical Co., Ltd. to pay the bill and the corresponding interest
to the Company; 3. As matured notes were failed to be accepted, the Company has filed a lawsuit with the court to request Shanghai Huaxin
International Group Co., Ltd. Qingdao Bonded Zhongshe International Trading Co., Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co.,
Ltd. to pay the bill and the corresponding interest to the Company; 4. As a consequence of the non-payment of a bill upon its expiry, Kongka
Factoring has instituted legal proceedings before the court. The lawsuit seeks an injunctive order mandating Tahe Group Co., Ltd., Fuzhou Taijia
Industrial Co., Ltd., and Xiamen Lianchuang Microelectronics Co., Ltd. to remit payment for the bill amount, along with the corresponding interest,
to Kongka Factoring.; 5. As matured notes were failed to be accepted, the Company has filed a lawsuit with the court to request Hefei Huajun Trading
Co., Ltd. and Wuhan Jialian Agricultural Technology Development Co., Ltd. to pay the bill and the corresponding interest to the Company; 6. Due to
dispute arisen from a logistics contract, the Company’s subsidiary Anhui Konka filed a lawsuit to request the freight forwarder Shanghai Triangle
77
Konka Group Co., Ltd. Annual Report 2022
Link Logistics Co., Ltd. Shenzhen Branch to make compensation; 7. Due to contract dispute, the Company’s subsidiary Shenzhen Nianhua applied
for arbitration to request the respondent Fang Xianglong and Jiang Yan to make compensation for corresponding annual profit and fund possession
cost; 8. Due to payment dispute, the Company’s subsidiary Hong Kong Konka applied for an arbitration to Shenzhen Court of International
Arbitration to request the respondent Makena Electronic (Hong Kong) to pay for goods and liquidated damages; 9. Because of a dispute over capital
increase, the Company's subsidiary, Shenzhen Konka Investment Holding Co., Ltd., applied for arbitration with the Shenzhen Court of International
Arbitration (SCIA), requesting the respondents, Elion Resources Group and Elion Ecological Co., Ltd., to perform the repurchase obligation; 10. As a
result of a dispute stemming from an international sale of goods contract, Anhui Konka Electronic Co., Ltd., a subsidiary of the Company, has
initiated legal proceedings against Maoxinyuan Electronics (Hong Kong) Co., Ltd. The lawsuit seeks an injunctive order compelling the respondent to
pay the applicant the overdue payment interest losses; 11. As a result of a dispute arising from an international sale of goods contract, Anhui Kangzhi
Trade Co., Ltd., a subsidiary of the Company, has initiated legal proceedings against B&L TECHNOLOGY CO., LIMITED. The lawsuit seeks an
injunctive order compelling the respondent to pay the purchase price, as well as any penalties for breach of contract. 12. Because of a dispute over an
agency agreement, the Company's subsidiary, Henan Frestec Refrigeration Appliance Co., Ltd. sued Shenzhen Meisenyuan Plastic Electronics Co.,
Ltd., Shantou Meisen Technology Co., Ltd., Lin Yuanqin, Huang Ruirong, Chuangfu Shopping Centre Real Estate Development (Huizhou) Co., Ltd.,
requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority shall be given to the
payment for the secured assets.
The following cases have been disclosed in current announcements and periodic reports and are currently in trial. Details of these cases can be
found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2020-97) and the Announcement on Accumulated Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) and the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101), the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89) and the Company's periodic reports: 1.
The customer of Hong Kong Konka, H-BUSTER SAO PAULO INDUSTRIAE COMERCIO S.A (Brazil) was insolvent, and obtained the
approval of the judicial reorganization application of Cotia Third Civil Court of the Court of Sao Paulo, Brazil in May 2013. As the creditor of H-
BUSTER, Hong Kong Konka filed the debt declaration documents, and in August 2014, the amount confirmed of debt was USD2.78 million. 2.
Due to the Jiangxi Xinxin Jian’an Engineering Co., Ltd. (hereinafter referred to as the “Jiangxi Xinxin”), Jiangxi Shanshi Technology
Development Co., Ltd. (hereinafter referred to as the “Jiangxi Shanshi”), Jiangxi Zhongyi Decoration Materials Co., Ltd. (hereinafter referred to as
the “Jiangxi Zhongyi”) failed to repay the loan and its interest of China Great Wall AMC Jiangxi Branch (hereinafter referred to as the “Great Wall
Jiangxi Branch”), the Great Wall Jiangxi Branch sued to the court, and required Jiangxi Xinxin, Jiangxi Shanshi, Jiangxi Zhongyi to repay
RMB300 million with RMB108,000 liquidated damages, and RMB13.65 million of interest. Meanwhile, 9 guarantors including Jiangxi Konka,
Xinfeng Microcrystalline and Nanocrystal are required to undertake joint liability guaranty. The judgment of first instance required that Jiangxi
Xinxin, Jiangxi Zhongyi and Jiangxi Shanshi shall repay the principal, interest and liquidated damages to Great Wall Jiangxi Branch and the
guarantors bear the joint liability for satisfaction to the debts. The defendants have appealed against the first instance judgment. Later, the court of
second instance ruled that the case should be returned to the court of first instance for retrial. 3. Because of a dispute over an agency agreement, the
Company's subsidiary, Henan Frestec Refrigeration Appliance Co., Ltd., sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan
Plastic Electronics Co., Ltd., Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., and Chuangfu Commerce & Trade Plaza
Real Estate Development (Huizhou) Co., Ltd., requesting to terminate the contract and requesting them to return the payment of goods and
liquidated damages and priority shall be given to the payment for the secured assets, and the case was heard in the second trial; 4. Because of a
dispute over an Agency Agreement, the Company's subsidiary, Anhui Konka Electronics Technology Co., Ltd. sued Shenzhen Meisenyuan Plastic
Electronics Co., Ltd., Shantou Meisen Technology Co., Ltd., Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., requesting
to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority shall be given to the payment for
the secured assets, and the case was heard in the second trial; 5. Because of a dispute over an Agency Agreement, the Company's subsidiary, Anhui
Konka Electronics Technology Co., Ltd. sued Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Lin
Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., requesting to terminate the contract and requesting them to return the
payment of goods and liquidated damages and priority shall be given to the payment for the secured assets; 6. Because of a dispute over an Agency
Agreement, the Company's subsidiary, Hainan Konka Material Technology Co., Ltd. sued Shantou Meisen Technology Co., Ltd., Shenzhen
78
Konka Group Co., Ltd. Annual Report 2022
Meisenyuan Plastic Electronics Co., Ltd., Jiangsu Huadong Hardware Zone Co., Ltd., requesting to terminate the contract and requesting them to
return the payment of goods and liquidated damages and priority shall be given to the payment for the secured assets; 7. Because of a dispute over
a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Dalian Jinshunda Material
Recycling Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and
pay liquidated damages, and the case was heard in the second trial. 8. Because of a dispute over a purchase and sales contract, the Company's
subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Dalian Xinjie Renewable Resources Co., Ltd, Huanjia Group Co., Ltd.,
Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages, and the case was
heard in the second trial. 9. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental
Technology Co., Ltd., sued Dalian Tianxing Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang
Renping, requiring them to return the advance payment and pay liquidated damages, and the case was heard in the second trial. 10. Because of a
dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Huanjia Mingtai
(Dalian) Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the
advance payment and pay liquidated damages, and the case was heard in the second trial. 11. Because of a dispute over a purchase and sales
contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Lankao Shunjia Renewable Resources Co., Ltd,
Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated
damages, and the case was heard in the second trial. 12. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka
Huanjia Environmental Technology Co., Ltd., sued Henan Shunhenghui Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde,
Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages, and the case was heard in the second
trial. 13. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd.,
sued Henan Jiaxin Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to
return the advance payment and pay liquidated damages, and the case was heard in the second trial. 14. Because of a dispute over a purchase and
sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Henan Shengxiang Renewable Resources Co.,
Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated
damages, and the case was heard in the second trial. 15. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka
Huanjia Environmental Technology Co., Ltd., sued Zhejiang Jiade Renewable Resources Co., Ltd, Huanjia Group Co., Ltd., Wang Bingde, Zhang
Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages, and the case was heard in the second trial.
16. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued
Zhejiang Zhijie Renewable Resource Recycling Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring
them to return the advance payment and pay liquidated damages, and the case was heard in the second trial. 17. Because of a dispute over a
purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Zhejiang Xinkai Renewable
Resource Recycling Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance
payment and pay liquidated damages, and the case was heard in the second trial. 18. Because of a dispute over a purchase and sales contract, the
Company's subsidiary, Konka Huanjia Environmental Technology Co., Ltd., sued Henan Huanjia Chengxin Eco-protection Technology Co., Ltd.,
Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated
damages, and the case was heard in the second trial. 19. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka
Huanjia Environmental Technology Co., Ltd., sued Henan Xincheng Renewable Resource Recycling Co., Ltd., Huanjia Group Co., Ltd., Wang
Bingde, Zhang Xueyin and Wang Renping, requiring them to return the advance payment and pay liquidated damages, and the case was heard in
the second trial. 20. Because of a dispute over a purchase and sales contract, the Company's subsidiary, Konka Huanjia Environmental Technology
Co., Ltd., sued Henan Guozheng Eco-protection Technology Co., Ltd., Huanjia Group Co., Ltd., Wang Bingde, Zhang Xueyin and Wang Renping,
requiring them to return the advance payment and pay liquidated damages, and the case was heard in the second trial. 21. Because of a dispute over
a purchase and sales contract, the Company's subsidiary, Dongguan Konka Electronic Co., Ltd., filed a lawsuit with the People's Court of Nanshan
District in Shenzhen, requesting Dongguan Gaoneng High Polymer Materials Co., Ltd., Wang Dong, Shenzhen Xinlian Xingyao Trade Co., Ltd.,
Shenzhen Jinchuan Qianchao Network Technology Co., Ltd., Puning Junlong Trade Co., Ltd. and Huang Zhihao to make the overdue payment for
goods and pay corresponding liquidated damages, and the case was heard in the second trial; 22. In view of a dispute arising from a commission
79
Konka Group Co., Ltd. Annual Report 2022
contract, Shenzhen Konka Pengrun Technology & Industry Co., Ltd., a subsidiary of the Company, has instituted legal proceedings against
Guang’an Ouchishi Electronic Technology Co., Ltd., Guan Hongshao, Huaying Gaoke De Electronic Technology Co., Ltd., Huaying Gaoke Long
Electronic Technology Co., Ltd., Guizhou Jiaguida Technology Co., Ltd., Sichuan Hongrongyuan Property Co., Ltd., Du Xinyu, Lin Bolong, and
Wang Shisheng, seeking an order for the defendants to pay the purchase price and claiming damages for breach of contract; 23. In view of a
dispute arising from a loan contract, the Company has initiated legal proceedings against Yantai Kangyue Investment Co., Ltd., seeking an order
for the defendant to repay the loan and interest; 24. Due to a dispute arising from a guarantee contract, Hong Kong Konka Limited, a subsidiary of
the Company, has initiated legal proceedings against Xu Xiang, Zheng Baoyao, Ke Hanhua, and Shenzhen Jinzhong Industry Co., Ltd., seeking an
order for the defendants to assume guarantee liability; 25 As a result of a dispute arising from an international sale of goods contract, Jiaxin
Technology Co., Ltd., a subsidiary of the Company, has initiated legal proceedings against Dingxin Electronic Technology (Hong Kong) Co., Ltd.,
Chen Wenhuan, and Chen Baohong, seeking an order for the defendants to pay for the goods and claiming damages for breach of contract; 26. As a
result of a dispute arising from a guarantee contract, Anhui Konka Electronic Co., Ltd., a subsidiary of the Company, has initiated legal
proceedings against Maoxinyuan Electronics (Shenzhen) Co., Ltd., seeking an order for the defendant to assume joint guarantee liability to the
plaintiff, and the case was heard in the second trial; 27. Due to a dispute arising from an installment purchase contract, Wu Rong has instituted
legal proceedings against the Company and its subsidiary, Shenzhen Konka Electronics Technology Co., Ltd., seeking an order for the payment of
the purchase price and overdue payment interest to the plaintiff; 28. As a result of a dispute arising from a contract, Shenzhen Oriental
Entrepreneurship Investment Co., Ltd. has initiated legal proceedings against the Company, seeking an order for the payment of the repurchase
amount and claiming damages for breach of contract.
XII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable √ Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
As % Obtai
Appro
of nable Index
Relati ved Over
Total total marke to
onshi Type Specif Pricin transa the Metho
Relate Trans value value t price Disclo disclo
p with of ic g ction appro d of
d action (RMB of all for sure sed
the transa transa princi line ved settle
party price ’0,000 same- same- date infor
Comp ction ction ple (RMB line or ment
) type type matio
any ’0,000 not
transa transa n
)
ctions ctions
OCT Prope
Enter Purch rty
Under
prises ase of mana
the
Co., comm geme Negot 30
same Marke 7,120. 10,00
Ltd oditie nt, iated 0.72% Not Cash N/A March http://
actual t price 55 0
and s and utilitie price 2022 www.
contro
its servic s, cninfo
ller
subsid es office .com.
iaries leases cn/ne
OCT Under Sales w/ind
the Sales ex
Enter of Negot 30
prises same of TVs, Marke 17,86 20,00
iated 1.75% Not Cash N/A March
Co., actual goods intelli t price 7.70 0
price 2022
Ltd contro gent
ller and
and termin
80
Konka Group Co., Ltd. Annual Report 2022
its servic als,
subsid etc.
iaries es and
chargi
ng
install
ation
fees
of
smart
TV
termin
als
and
other
fees.
24,98 30,00
Total -- -- -- -- -- -- -- --
8.25 0
Large-amount sales return in detail N/A
The Company has published the Forecasting Public Notice on Routine Related-party
Give the actual situation in the
Transaction for Y2022 on Securities Times, Shanghai Securities News, and China Securities
Reporting Period (if any) where an
Journal as well as the Internet website designated by CSRC
estimate had been made for the
http://http://www.cninfo.com.cn/new/index on 30 March 2022. In the Reporting Period, the
total value of continuing related-
basis for pricing, transaction price, transaction amount and settlement methods of raw
party transactions by type to occur
materials purchased by the Company were basically in accordance with the forecast. The
in the Reporting Period
total amount was RMB249,882,500.
Reason for any significant
difference between the transaction
N/A
price and the market reference
price (if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
√ Applicable □ Not applicable
Refer to 7. Other Major Related-Party Transactions of this section for details.
4. Credits and Liabilities with Related Parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for non-
operating purposes.
√ Yes □ No
Credits receivable with related parties:
Whether
Increased Recovere Interest in
there is
Beginnin in the d in the the Ending
Related occupatio
Related Forming g balance Reporting Reporting Interest Reporting balance
relationsh n on non-
party reason (RMB’0,0 Period Period rate Period (RMB’0,0
ip operating
00) (RMB’0,0 (RMB’0,0 (RMB’0,0 00)
capital or
00) 00) 00)
not
Chuzhou Subsidiar Demand
Kangjin y of of
Not 15,773.64 0 15,773.64 7.00% 695.90 0
Health controllin business
Industry g developm
81
Konka Group Co., Ltd. Annual Report 2022
Develop sharehold ent
ment Co., er
Ltd.
Effects of credits with
related parties on the No effect to the normal operation of the Company. Other shareholders of the Company and Chuzhou
Company’s operating Kangjin Health Industry Development Co., Ltd. offer financial assistance under the same conditions in
results and financial accordance to their shareholding ratio.
conditions
Liabilities payable with related parties:
Increased Recovered Interest in
Beginning in the in the the Ending
Related Related Forming balance Reporting Reporting Reporting balance
Interest rate
party relationship reason (RMB’0,00 Period Period Period (RMB’0,00
0) (RMB’0,00 (RMB’0,00 (RMB’0,00 0)
0) 0) 0)
1,091.00 0 1,091.00 3.85% 21.02 0
The 100,000.00 0 100,000.00 3.85% 2,297.25 0
OCT Company 20,000.00 0 20,000.00 3.85% 598.54 0
Controlling
Enterprises applies 0 150,000.00 18,909.00 3.85% 5,585.46 131,091.00
shareholder
Co., Ltd. entrusted 0 50,000.00 0 3.85% 1,213.82 50,000.00
loan to it 0 70,000.00 0 3.85% 1,646.94 70,000.00
0 100,000.00 100,000.00 3.85% 10.69 0
Effects of liabilities with related parties
The Company applies entrusted loan from OCT Enterprises Co., Ltd. which meets the
on the Company’s operating results and
needs of the company's existing business development and reduces the financing cost.
financial conditions
5. Transactions with Related Finance Companies
□ Applicable √ Not applicable
The Company did not make deposits in, receive loans or credit from and was not involved in any
other finance business with any related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make deposits, receive loans or credit
from and was not involved in any other finance business with any related parties.
7. Other Major Related-Party Transactions
√Applicable □ Not applicable
(1) The Company’s Counter-Guarantees to Affiliated Companies: On 21 February 2022, the 54th
meeting of the 9th Board of Directors and the first extraordinary general meeting of shareholders in
2022 held on 22 March 2022 approved the proposal Shenzhen Konka Telecommunications
Technology Co., Ltd. Providing Counter-Guarantees to Shenzhen Overseas Chinese Town Co., Ltd.
Due to the need for business development, Shenzhen Overseas Chinese Town Co., Ltd. provided a
full joint and several liability guarantee for the 800 million yuan financing of Yibin Overseas
Chinese Town Sanjiang Real Estate Co., Ltd., a joint venture of Shenzhen Konka Communication
Technology Co., Ltd. Therefore, Shenzhen Konka Communication Technology Co., Ltd. provides a
counter guarantee of no more than 160 million yuan to Shenzhen Overseas Chinese Town Co., Ltd.
82
Konka Group Co., Ltd. Annual Report 2022
based on its shareholding ratio in Yibin Overseas Chinese Town Sanjiang Real Estate Co., Ltd. The
counter guarantee method is joint liability guarantee, and the validity period of the guarantee
amount is three years. During the reporting period, Shenzhen Konka Communication Technology
Co., Ltd. provided a counter guarantee of 100 million yuan to Shenzhen Overseas Chinese Town
Co., Ltd. based on its shareholding ratio.
(2) Application for Comprehensive Credit Limit from China Everbright Bank Co., Ltd.: The 56th
meeting of the 9th Board of Directors on 28 March 2022,approved the proposal Application for
Comprehensive Credit Limit from China Everbright Bank Co., Ltd. The Company applied for a
comprehensive credit limit not exceeding RMB1.5 billion from China Everbright Bank Co., Ltd. to
meet its daily operating capital needs. During the reporting period, the Company signed a credit
agreement with China Everbright Bank Co., Ltd. for a credit amount of RMB1 billion.
(3) Counter-guarantees for Bank Credit Facilities Application: The 56th meeting of the 9th Board of
Directors on 28 March 2022 and the 2021 Annual General Meeting of Shareholders on 25 April
2022, approved the proposal Providing Counter-guarantees for Bank Credit Facilities Application
by the Company. To reduce financing costs, Overseas Chinese Town Holdings Company (“OCT
Group” for short) provided a full, unconditional, and irrevocable joint and several liability
guarantee (the “Guarantee”) for the Company’s bank credit facilities application, not exceeding
RMB2.5 billion. In turn, the Company plans to offer counter-guarantees to Overseas Chinese Town
Group of an equal amount and term, with an anticipated counter-guarantee amount not exceeding
RMB2.5 billion, and a guarantee limit valid for a maximum of three years.
(4) Guarantee Limits for Affiliated Companies: The 57th meeting of the 9th Board of Directors on
27 April 2022 and the second extraordinary general meeting of shareholders in 2022 on 16 May
2022, passed the proposals Providing Guarantee Limits for Kunshan Kangsheng Investment
Development Co., Ltd. and Providing Guarantee Limits for Chuzhou Konka Technology Industry
Development Co., Ltd. According to its shareholding proportion, the Company intends to increase
the credit guarantee limit for Kunshan Kangsheng Investment Development Co., Ltd. (“Kunshan
Kangsheng Company”) by RMB49 million, with a guarantee limit valid for three years. Other
shareholders of Kunshan Kangsheng Company will provide guarantees for Kunshan Kangsheng
Company based on their respective shareholding proportions, together with the Company. As a
result, the total guarantee limit provided by the Company for Kunshan Kangsheng Company will
increase to RMB294 million. The Company also plans to provide a credit guarantee limit of
RMB98 million for Chuzhou Konka Technology Industry Development Co., Ltd. (“Chuzhou
Konka Company”) according to its shareholding proportion, with a guarantee limit valid for three
years. Other shareholders of Chuzhou Konka Company will provide guarantees for Chuzhou Konka
Company based on their respective shareholding proportions, together with the Company.
(5) Capital increase in related joint stock company: At the 59th meeting of the 9th Board of
83
Konka Group Co., Ltd. Annual Report 2022
Directors held on June 1, 2022, the Company reviewed and approved the Proposal on Increasing the
Capital of Chuzhou Kangjin Health Industry Development Co., Ltd. In order to satisfy the capital
needs of Chuzhou Kangjin Health Industry Development Co., Ltd. (Chuzhou Kangjin) the
Company made a capital increase of RMB157.7359 million to Chuzhou Kangjin (consideration of
RMB1 for RMB1 of registered capital) together with Shanghai OCT Co., Ltd. in proportion to their
shareholding percentages in Chuzhou Kangjin. Upon the capital increase, the registered capital of
Chuzhou Kangjin would increase from RMB30 million to RMB351.91 million. And the Company’s
shareholding percentage in Chuzhou Kangjin would remain unchanged. During the Reporting
Period, the Company has completed the capital increase in Chuzhou Kangjin Health Industry
Development Co., Ltd.
Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on a Capital Increase to Chuzhou Kangjin Health Industry
2 June 2022
Development Co., Ltd. and the Related-party Transaction
Announcement on the Provision of Guarantee Line for Joint Stock Company
28 April 2022
and the Related-party Transaction
Announcement on the Application to China Everbright Bank for
30 March 2022
Comprehensive Credit Line & the Related-party Transaction
Announcement on the Provision of Counter-guarantee for the Application to http://www.cninfo.com.c
30 March 2022
Bank for Credit Line & the Related-party Transaction n/new/index
Announcement on the Termination of the Asset Acquisition by Share
Offering and Cash Payment and Raising the Matching Funds & the Related- 7 March 2022
party Transaction
Announcement on the Provision of Counter-guarantee by Shenzhen Konka
Telecommunications Technology Co., Ltd. to Shenzhen Overseas Chinese 23 February 2022
Town Co., Ltd. & the Related-party Transaction
XV Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
84
Konka Group Co., Ltd. Annual Report 2022
(3) Leases
√ Applicable □ Not applicable
Note to leases
No significant leases in the Reporting Period.
The rent of Konka Development Building has received RMB69,716,914.02 in the Reporting
Period.
The project bringing about gains or losses as over 10% of total profit in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Havin Guarant
Disclosure Actual Type Collat Counter Term
Line of Actual g ee for a
date of the guarant of eral guarant of
Obligor guarante occurren expire related
guarantee line ee guara (if ee (if guara
e ce date d or party or
announcement amount ntee any) any) ntee
not not
Joint-
19 May One
1,749 liabilit No Not Not Not
2022 year
y
Joint-
17 May One
3,747 liabilit No Not Not Not
2022 year
y
Joint-
18 May One
4,997 liabilit No Not Not Not
2022 year
y
Joint-
28 June One
250 liabilit No Not Not Not
2022 year
y
Joint-
8 July One
2,498 liabilit No Not Not Not
2022 year
Shandong Econ y
Technology 28 April 2022 50,000 Joint-
27 July One
Co., Ltd. 749 liabilit No Not Not Not
2022 year
y
16 Joint-
One
August 25 liabilit No Not Not Not
year
2022 y
6 Joint-
One
Septemb 200 liabilit No Not Not Not
year
er 2022 y
30 Joint-
Two
Septemb 3,747 liabilit No Not Not Not
years
er 2022 y
One
23 Joint-
year
Novemb 2,748 liabilit No Not Not Not
and a
er 2022 y
half
Shenzhen
Joint-
Overseas 23 February 31 May One
16,000 10,000 liabilit No Not Not Yes
Chinese Town 2022 2022 year
y
Co., Ltd.
Foshan 17 May Joint- Six
28 April 2022 1,372 980 No Not Not Not
Zhujiang 2022 liabilit years
85
Konka Group Co., Ltd. Annual Report 2022
Media Creative y
Park Cultural
Development
Co., Ltd.
Jiangxi Xinxin
12 Joint-
Jian’an
10,000 Decemb 10,000 liabilit No Not Not Not
Engineering
er 2016 y
Co., Ltd.
Jiangxi
Zhongyi 12 Joint-
Decoration 10,000 Decemb 10,000 liabilit No Not Not Not
Materials Co., er 2016 y
Ltd.
Jiangxi Shanshi
12 Joint-
Technological
10,000 Decemb 10,000 liabilit No Not Not Not
Development
er 2016 y
Co., Ltd.
8 Joint-
Three
Overseas Septemb 60,000 liabilit No Not Not Yes
years
Chinese Town 30 March er 2022 y
270,000
Holdings 2022 18 Joint-
Three
Company October 60,000 liabilit No Not Not Yes
years
2022 y
Total approved line for such
Total actual amount of such guarantees in the
guarantees in the Reporting 651,872 151,690
Reporting Period (A2)
Period (A1)
Total approved line for such
Total actual balance of such guarantees at the end
guarantees at the end of the 785,572 181,690
of the Reporting Period (A4)
Reporting Period (A3)
Guarantees provided between the Company and subsidiaries
Disclosure Actua Guaran
date of the Line l Colla Counter Term tee for
Having
guarantee of Actual guara Type of teral guarante of a
Obligor expired
line guaran occurrence date ntee guarantee (if e (if guarant related
or not
announce tee amou any) any) ee party or
ment nt not
One
28 October Joint- year
3,000 No Not Not Not
2021 liability and a
half
23 May
Joint- One
Anhui 2018 and 14 April 2022 5,000 No Not Not Not
55,00 liability year
Tongchua 19
0 Joint- One
ng September 2 June 2022 3,000 No Not Not Not
liability year
2018
Joint- One
5 July 2022 5,000 No Not Not Not
liability year
19 October 10,00 Joint- One
No Not Not Not
2022 0 liability year
31
Hong October
90,00 9 February 10,00 Joint- One
Kong 2018 and No Not Not Not
0 2022 0 liability year
Konka 28 April
2022
31 March 19 August Joint- Three
2,480 No Not Not Not
Boluo 2018 and 125,0 2020 liability years
Precision 28 April 00 25 August Joint- One
3,000 No Not Not Not
2022 2022 liability year
Electroni 24 November Joint- One
19 8,500 No Not Not Not
cs 350,0 2022 liability year
September
Technolo 00 10 October 50,00 Joint- One
2018 No Not Not Not
gy 2022 0 liability year
19 Joint- One
18 March 2022 5,000 No Not Not Not
September liability year
Donggua 90,00
2018 and
n Konka 0 80,00 Joint- Ten
24 March 23 June 2021 No Not Not Not
0 liability years
2021
86
Konka Group Co., Ltd. Annual Report 2022
23 February Joint- Other Two
5,800 No Not Not
2022 liability sharehol years
25 December Joint- der of Three
2,000 No Not Not
2020 liability XingDa years
HongYe
provides
a
19
XingDa 10,00 counter
September
HongYe 0 guarante
2018
Joint- e for the Two
31 May 2021 750 No Not Not
liability Compan years
y for
49% of
the
guarante
e line
6 November 10,00 Joint- Other Three
No Not Not
2020 0 liability sharehol years
Joint- der of One
26 June 2022 6,000 No Not Not
liability Jiangxi year
29 September 10,00 Joint- Konka Three
No provides Not Not
2020 0 liability years
a Two
31
Jiangxi 60,00 21 December Joint- counter years
October 5,000 No Not Not
Konka 0 2020 liability guarante and a
2018
e for the half
Joint- Compan Two
10 March 2022 990 No y for Not Not
liability years
49% of
30 December Joint- the Three
1,000 No guarante Not Not
2020 liability years
e line
Joint- Other Three
19 May 2020 5,000 No Not Not
liability sharehol years
8 December Joint- der of Three
2,100 No Not Not
2020 liability Xinfeng years
29 December Joint- Microcr One
7,200 No ystalline Not Not
2022 liability year
provides
Xinfeng a
30 March 25,00
Microcry counter
2019 0
stalline guarante
e for the
Joint- Compan One
29 June 2022 7,200 No Not Not
liability y for year
49% of
the
guarante
e line
Joint- Other Three
8 January 2020 5,000 No Not Not
liability sharehol years
Joint- der of Two
10 March 2022 990 No Not Not
liability Jiangxi years
High
Transpa
rent
Jiangxi
Substrat
High
30 March 45,00 e
Transpare
2019 0 provides
nt
Joint- a Three
Substrate 14 July 2020 6,000 No Not Not
liability counter years
guarante
e for the
Compan
y for
49% of
the
87
Konka Group Co., Ltd. Annual Report 2022
guarante
e line
31 March
Sichuan 2018 and 65,00 Joint- One
22 March 2022 4,000 No No Not Not
Konka 24 March 0 liability year
2021
Ningbo 12 August Joint- Two
6,000 No No Not Not
Khr 2021 liability years
28 April 12,00
Electric
2022 0 Joint- One
Applianc 12 July 2022 6,000 No No Not Not
liability year
e
Other
sharehol
der of
Yibin
Kangrun
provides
a
24
Yibin 10,00 13 November 10,00 Joint- counter Four
October No Not Not
Kangrun 0 2020 0 liability guarante years
2020
e for the
Compan
y for
33% of
the
guarante
e line
Telecom
municatio
28 April 20,00 Joint- One
n 20 May 2022 7,500 No No Not Not
2022 0 liability year
Technolo
gy
10 August 28,00 Joint- Other Ten
No Not Not
2021 0 liability sharehol years
29 October Joint- der of Five
7,000 No Not Not
2021 liability Anhui years
13 September 10,00 Joint- Konka One
No provides Not Not
2022 0 liability year
18 August Joint- a One
Anhui 28 April 110,0 5,500 No counter Not Not
2022 liability year
Konka 2022 00 22 August 18,00 Joint- guarante One
No e for the Not Not
2022 0 liability year
24 October Joint- Compan Four
7,000 No y for Not Not
2022 liability years
22% of
19 September Joint- the One
7,000 No guarante Not Not
2022 liability year
e line
Three
Konka 24 March 50,00 20,00 Joint- years
24 May 2021 No No Not Not
Circuit 2021 0 0 liability and a
half
Mobile
28 April 10,00 11 August Joint- One
Interconn 7,000 No No Not Not
2022 0 2022 liability year
ection
24 March
Liaoyang
2021 and 20,00 19 January Joint- One
Kangshu 5,000 No No Not Not
28 April 0 2022 liability year
n
2022
20,00 Joint- Five
12 July 2021 No No Not Not
Konka 24 March 30,00 0 liability years
Xinyun 2021 0 Joint- Two
26 May 2022 6,000 No No Not Not
liability years
Yibin 24 March 10,00 Joint- One
31 March 2022 980 No No Not Not
Smart 2021 0 liability year
Chongqin 24 March 55,60 13 December 38,00 Joint- No No Fifteen Not Not
88
Konka Group Co., Ltd. Annual Report 2022
g Konka 2021 0 2022 0 liability years
Frestec
28 April 12,24 10,20 Joint- Eight
Smart 6 July 2022 No No Not Not
2022 0 0 liability years
Home
Konka
Soft 28 April 19,00 19 December Joint- Four
975 No No Not Not
Electroni 2022 0 2022 liability years
c
Total actual amount of such
Total approved line for such guarantees in the Reporting
334,470 guarantees in the Reporting Period 260,835
Period (B1)
(B2)
Total actual balance of such
Total approved line for such guarantees at the end of the
1,607,180 guarantees at the end of the 484,165
Reporting Period (B3)
Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure Actua Guaran
date of the Line l Colla Counter Term tee for
Having
guarantee of Actual guara Type of teral guarante of a
Obligor expired
line guaran occurrence date ntee guarantee (if e (if guarant related
or not
announce tee amou any) any) ee party or
ment nt not
Land
s,
house
Anhui
prope
Electrical 13,50 13,50 Mortgage, Three
3 July 2020 rty, No Not Not
Applianc 0 0 pledge years
equit
e
y
intere
sts
Hous
Boluo 12,44 12,44 e Two
6 July 2021 Mortgage No Not Not
Precision 9 9 prope years
rty
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees
0 0
Period (C1) in the Reporting Period (C2)
Total approved line for such guarantees at the end of the Total actual balance of such guarantees
25,949 25,949
Reporting Period (C3) at the end of the Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period Total actual guarantee amount in the
986,342 412,525
(A1+B1+C1) Reporting Period (A2+B2+C2)
Total actual guarantee balance at the
Total approved guarantee line at the end of the Reporting
2,418,701 end of the Reporting Period 691,804
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the
90.55%
Company’s net assets
Of which:
Balance of guarantees provided for shareholders, actual controller and their related parties (D) 130,000
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 691,804
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 309,784
Total of the three amounts above (D+E+F) 691,804
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) N/A
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees:
None
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB’0,000
89
Konka Group Co., Ltd. Annual Report 2022
Unrecovered
Unrecovered overdue amount
Type Funding source Amount Undue amount
overdue amount with provision
for impairment
Trust financial
Self-owned 10,000.00 10,000.00 0 0
products
Total 10,000.00 10,000.00 0 0
High-risk entrusted wealth management with significant single amount or low security and poor
liquidity:
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which
may cause impairment for entrusted wealth management
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Other Significant Events
√ Applicable □ Not applicable
(I) Corporate bond issue: Currently, the public offering of corporate bonds of RMB1.2 billion was
completed on 14 July 2022; as for the non-public offering of corporate bonds of RMB1.8 billion,
RMB1.2 billion of corporate bonds have been issued respectively on 8 September 2022 and 18
October 2022. As for the rest of corporate bonds of RMB0.6 billion, relevant matters are being
promoted as planned.
(II) Initiation and establishment of funds: The total units of the Oriental-Konka Industry M&A
Fund worth RMB1,001,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed
RMB500 million, accounting for 49.95% of the total units. By the date of this report (31
December 2022), Shenzhen Konka Investment Holding Co., Ltd. has contributed
RMB487,344,000. The fund invested in Jiangxi Yahua Electronic Materials Co., Ltd., Genew
Technologies Co., Ltd., etc.
The total units of the Kunshan-CITIC-Konka Emerging Industry Development Investment Fund
worth RMB1,006,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500
million, accounting for 49.7% of the total units. By the date of this report, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB195.21 million. The fund invested in
UNIONTECH, Hercules Microsystems (HME), etc.
The total units of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund worth RMB500
million. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB200 million, accounting
90
Konka Group Co., Ltd. Annual Report 2022
for 40% of the total units. By the date of this report, Shenzhen Konka Investment Holding Co.,
Ltd. has contributed RMB200,000,000. The fund invested in Feidi Technology (Shenzhen) Co.,
Ltd., CASICloud-Tech Co., Ltd.
The total units of Yancheng Kangyan Industry Investment Fun worth RMB3 billion. Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment
Management Co., Ltd. contributed RMB1201,500,000, accounting for 40.05% of the total units.
By the date of this report, Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka
Capital Equity Investment Management Co., Ltd. have contributed RMB217,360,000. The fund
invested in Anhui Zhongdian Xingfa and Xinlong Co., Ltd. and Chongqing YPFun Technology
Co., Ltd., etc.
The total units of Yibin Kanghui Electronic Information Industry Equity Investment Fund worth
RMB1,002,000,000. Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital
Equity Investment Management Co., Ltd. contributed RMB401 million, accounting for 40.02% of
the total units. By the issuance date of this report, Shenzhen Konka Investment Holding Co., Ltd.
has contributed RMB104 million. The fund invested in Talkweb Information System Co., Ltd.
The total units of Chongqing Kangxin Equity Investment Fund worth RMB2 billion. Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment
Management Co., Ltd. contributed RMB1 billion, accounting for 50% of the total units. By the
date of this report, Shenzhen Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital
Equity Investment Management Co., Ltd. have contributed RMB148,248,300. The fund invested
in Shanghai Veiglo Information Technology Co., Ltd. Jiangxi Taide Wisdom Technology Co., Ltd.,
etc.
(III) Disclosure index of significant information
Announce Website
Date Title Page on newspaper
ment No. link
Announcement on Progress of Asset Acquisition and Funds
8 January Securities Daily B76, Shanghai
2022-01 Raising by Issuance of Shares and Cash Payment and
2022 Securities News 28, etc.
Progress of Related Transaction Plan After Disclosure
18 January Announcement on Resolutions of 53th Meeting of the Ninth Securities Daily B22, Shanghai
2022-02
2022 Board of Directors Securities News 84, etc.
18 January Announcement on Proposed introduction of Strategic Securities Daily B22, Shanghai
2022-03
2022 Investors by Controlling Company Securities News 84, etc.
25 January Securities Daily B31, Shanghai
2022-04 2021 Result Forecast
2022 Securities News 29, etc. http://ww
25 January Announcement on Progress of Security for Controlling Securities Daily B31, Shanghai w.cninfo.
2022-05 com.cn/n
2022 Company Securities News 29, etc.
Announcement on Progress of Asset Acquisition and Funds ew/index
9 February Securities Daily B31, Shanghai
2022-06 Raising by Issuance of Shares and Cash Payment and
2022 Securities News 36, etc.
Progress of Related Transaction Plan After Disclosure
17
Announcement on the Change of the Signatory Certified Securities Daily B37, Shanghai
2022-07 February
Public Accountant Securities News 16, etc.
2022
23
Announcement on Resolutions of 54th Meeting of the Ninth Securities Daily B38, Shanghai
2022-08 February
Board of Directors Securities News 33, etc.
2022
91
Konka Group Co., Ltd. Annual Report 2022
23
Announcement on Providing Financial Assistance to Securities Daily B38, Shanghai
2022-09 February
Shandong Econ Technology Co., Ltd. at Shareholding Ratio Securities News 33, etc.
2022
Announcement on Providing Counter Guarantee to and
23
Conducting Connected Transaction with Shenzhen Overseas Securities Daily B38, Shanghai
2022-10 February
Chinese Town Co., Ltd. by Shenzhen Konka Securities News 33, etc.
2022
Telecommunications Technology Co., Ltd.
23
Announcement on Progress of Guarantee Provision for Securities Daily B38, Shanghai
2022-11 February
GuangDong XingDa HongYe Electronic Co., Ltd. Securities News 33, etc.
2022
1 March Securities Daily B48, Shanghai
2022-12 Announcement on Resignation of the Company's Director
2022 Securities News 60, etc.
1 March Announcement on Resignation of the Company's Vice Securities Daily B48, Shanghai
2022-13
2022 President Securities News 60, etc.
7 March Announcement on Resolutions of 55th Meeting of the Ninth Securities Daily B3, Shanghai
2022-14
2022 Board of Directors Securities News 28, etc.
7 March Announcement on Resolutions of 19th Meeting of the Ninth Securities Daily B3, Shanghai
2022-15
2022 Board of Directors Securities News 28, etc.
7 March Announcement on Providing Financial Assistance to Sichuan Securities Daily B3, Shanghai
2022-16
2022 Chengrui Real Estate Co., Ltd. at Shareholding Ratio Securities News 28, etc.
7 March Notice on Convening 2022 First Extraordinary General Securities Daily B3, Shanghai
2022-17
2022 Meeting Securities News 28, etc.
Announcement on the Termination of Asset Acquisition and
7 March Securities Daily B3, Shanghai
2022-18 Funds Raising by Issuance of Shares or Cash Payment and
2022 Securities News 28, etc.
Related Transaction Matters
23 March Announcement on Resolutions of 2022 First Extraordinary Securities Daily B54, Shanghai
2022-19
2022 General Meeting Securities News 60, etc.
24 March Announcement on the Postponement of the Replacement of Securities Daily B14, Shanghai
2022-20
2022 the Board of Directors and the Board of Supervisors Securities News 16, etc.
25 March Announcement on Proposed Introduction of Strategic Securities Daily B60, Shanghai
2022-21
2022 Investors by Controlling Company Securities News 84, etc.
30 March
2022-22 2021 Annual Report of Mercedes-Benz Group AG
2022
30 March Announcement on Resolutions of 56th Meeting of the Ninth Securities Daily B55, Shanghai
2022-23
2022 Board of Directors Securities News 57, etc.
30 March Announcement on Resolutions of 20th Meeting of the Ninth Securities Daily B55, Shanghai
2022-24
2022 Board of Directors Securities News 57, etc.
30 March Announcement on Expected Routine Connected Transactions Securities Daily B56, Shanghai
2022-25
2022 in 2022 Securities News 57, etc.
30 March Securities Daily B55, Shanghai
2022-26 Announcement on Plan of Profit Distribution for 2022
2022 Securities News 59, etc.
30 March Securities Daily B55, Shanghai
2022-27 Notice on Convening 2021 Shareholders' General Meeting
2022 Securities News 57, etc.
30 March Announcement on Accrual of Asset Impairment Reserves for Securities Daily B55, Shanghai
2022-28
2022 2021 Securities News 57, etc.
Announcement on Providing Counter Guarantee and
30 March Securities Daily B55, Shanghai
2022-29 Conducting Connected Transaction for Applying for Bank
2022 Securities News 59, etc.
Credit Business
Announcement on Issuing the Plan for the Company's Private
30 March Securities Daily B56, Shanghai
2022-30 Offering of Corporate Bonds and Providing Counter
2022 Securities News 59, etc.
Guarantee for OCT Group
Announcement on Applying for a Comprehensive Line of
30 March Securities Daily B56, Shanghai
2022-31 Credit to and Conducting Connected Transactions with China
2022 Securities News 57, etc.
Everbright Bank
30 March Securities Daily B55, Shanghai
2022-32 Abstract of 2021 Annual Report
2022 Securities News 57, etc.
Announcement on Completion of Industrial and Commercial
1 April Securities Daily B92, Shanghai
2022-33 Registration of Changes for Capital Increase of Hefei
2022 Securities News 92, etc.
KONSEMI Storage Technology Co., Ltd.
1 April Securities Daily B92, Shanghai
2022-34 Announcement on Holding 2021 Online Result Release
2022 Securities News 92, etc.
2022-35 1 April Announcement on Progress of Security for Controlling Securities Daily B100, Shanghai
92
Konka Group Co., Ltd. Annual Report 2022
2022 Company Securities News 92, etc.
26 April Announcement on Resolutions of 2021 Shareholders' General Securities Daily B219, Shanghai
2022-36
2022 Meeting Securities News 236, etc.
28 April Securities Daily B181, Shanghai
2022-37 2022Q1 Report
2022 Securities News 193, etc.
28 April Notice on Convening 2022 Second Extraordinary General Securities Daily B183, Shanghai
2022-38
2022 Meeting Securities News 194, etc.
28 April Announcement on Resolutions of 57th Meeting of the Ninth Securities Daily B181, Shanghai
2022-39
2022 Board of Directors Securities News 193, etc.
28 April Announcement on Proposed Sale of Some of Equity in Securities Daily B183, Shanghai
2022-40
2022 Chutian Dragon Co., Ltd. Securities News 194, etc.
28 April Announcement on Progress of Guarantee Provision for Securities Daily B182, Shanghai
2022-41
2022 Wholly-owned Company Securities News 194, etc.
28 April Securities Daily B181, Shanghai
2022-42 Announcement on External Guarantee
2022 Securities News 193, etc.
Announcement on Providing Security Limit to and
28 April Securities Daily B182, Shanghai
2022-43 Conducting Connected Transaction with Shareholding
2022 Securities News 194, etc.
Company
17 May Announcement on Resolutions of 2022 Second Extraordinary Securities Daily B91, Shanghai
2022-44
2022 General Meeting Securities News 76, etc.
21 May Announcement on Resolutions of 58th Meeting of the Ninth Securities Daily B16, Shanghai
2022-45
2022 Board of Directors Securities News 25, etc.
21 May Announcement on Transfer of 100% of Equity in Xi'an Securities Daily B16, Shanghai
2022-46
2022 Huasheng Jiacheng Real Estate Co., Ltd. Securities News 25, etc.
2 June Announcement on Resolutions of 59th Meeting of the Ninth Securities Daily B16, Shanghai
2022-47
2022 Board of Directors Securities News 41, etc.
Announcement on Increasing Capital to and Conducting
2 June Securities Daily B16, Shanghai
2022-48 Connected Transaction with Chuzhou Kangjin Health
2022 Securities News 41, etc.
Industrial Development Co., Ltd.
2 June Announcement on Progress in the Provision of External Securities Daily B16, Shanghai
2022-49
2022 Guarantee Securities News 41, etc.
2 June Securities Daily B71, Shanghai
2022-50 Announcement on Distribution of 2022 Annual Equity
2022 Securities News 52, etc.
11 June Announcement on Resolutions of 60th Meeting of the Ninth Securities Daily B23, Shanghai
2022-51
2022 Board of Directors Securities News 41, etc.
11 June Notice on Convening 2022 Third Extraordinary General Securities Daily B23, Shanghai
2022-52
2022 Meeting Securities News 41, etc.
11 June Announcement on Revision of the Articles of Association and Securities Daily B22, Shanghai
2022-53
2022 other systems of the Company Securities News 41, etc.
18 June Announcement on Progress of Guarantee Provision for Securities Daily B22, Shanghai
2022-54
2022 Wholly-owned Company Securities News 20, etc.
Announcement on Voluntary Information Disclosure for
25 June Securities Daily B71, Shanghai
2022-55 Signing Cooperation Framework Agreement with Hangzhou
2022 Securities News 60, etc.
Hemai Power Electronics Co., Ltd.
28 June Announcement on Resolutions of 2022 Third Extraordinary Securities Daily B57, Shanghai
2022-56
2022 General Meeting Securities News 52, etc.
28 June Announcement on Progress in Transfer of 100% of Equity in Securities Daily B57, Shanghai
2022-57
2022 Xi'an Huasheng Jiacheng Real Estate Co., Ltd. Securities News 52, etc.
9 July Announcement on Resolutions of 61st Meeting of the Ninth Securities Daily B16, Shanghai
2022-57
2022 Board of Directors Securities News 81, etc.
9 July Announcement on Resolutions of 22nd Meeting of the Ninth Securities Daily B16, Shanghai
2022-58
2022 Supervisory Committee Securities News 81, etc.
9 July Notice on Convening 2022 Fourth Extraordinary General Securities Daily B15, Shanghai
2022-59
2022 Meeting Securities News 81, etc.
9 July Securities Daily B15, Shanghai
2022-60 Statement of Independent Director Candidate (Liu Jian)
2022 Securities News 81, etc.
9 July Statement of Independent Director Candidate (Deng Securities Daily B15, Shanghai
2022-61
2022 Chunhua) Securities News 81, etc.
9 July Statement of Independent Director Candidate (Wang Securities Daily B15, Shanghai
2022-62
2022 Shuguang) Securities News 81, etc.
9 July Securities Daily B16, Shanghai
2022-63 Statement of Independent Director Nominee (Deng Chunhua)
2022 Securities News 81, etc.
93
Konka Group Co., Ltd. Annual Report 2022
9 July Securities Daily B15, Shanghai
2022-64 Statement of Independent Director Nominee (Liu Jian)
2022 Securities News 81, etc.
9 July Statement of Independent Director Nominee (Wang Securities Daily B15, Shanghai
2022-65
2022 Shuguang) Securities News 81, etc.
15 July Securities Daily B17, Shanghai
2022-66 Announcement on Performance Forecast for H1 2022
2022 Securities News 84, etc.
23 July Announcement on Overdue Shareholder Loan to Affiliated Securities Daily B13, Shanghai
2022-67
2022 Company Securities News 33, etc.
23 July Announcement on Progress Update on Bid for Land Use Securities Daily B17, Shanghai
2022-68
2022 Rights Securities News 33, etc.
26 July Announcement on Resolutions of the 2022 Fourth Securities Daily B37, Shanghai
2022-69
2022 Extraordinary General Meeting Securities News 52, etc.
26 July Announcement on Election of Employee Directors and Securities Daily B37, Shanghai
2022-70
2022 Employee Supervisors Securities News 52, etc.
26 July Announcement on Resolutions of 1st Meeting of the Tenth Securities Daily B37, Shanghai
2022-71
2022 Board of Directors Securities News 52, etc.
26 July Announcement on Resolutions of 1st Meeting of the Tenth Securities Daily B37, Shanghai
2022-72
2022 Supervisory Committee Securities News 52, etc.
18 August Announcement on Receipt of SZSE No Objection Letter for Securities Daily B14, Shanghai
2022-73
2022 2022 Corporate Bond Listing Qualification Securities News 108, etc.
20 August Announcement on Progress in the Provision of External Securities Daily B64, Shanghai
2022-74
2022 Guarantee Securities News 16, etc.
25 August Securities Daily B2, Shanghai
2022-75 Summary of 2022 Interim Report
2022 Securities News 20, etc.
25 August Securities Daily B2, Shanghai
2022-76 2022 Interim Report
2022 Securities News 20, etc.
25 August Announcement on Resolutions of 2nd Meeting of the Tenth Securities Daily B2, Shanghai
2022-77
2022 Board of Directors Securities News 20, etc.
9
Announcement on Issuance Results of Non-public Offering of Securities Daily A12, Shanghai
2022-78 September
Corporate Bonds (Tranche I) in 2022 Securities News 25, etc.
2022
15
Announcement on Progress in the Provision of External Securities Daily B33, Shanghai
2022-79 September
Guarantee Securities News 105, etc.
2022
1 October Announcement on Majority-owned Subsidiary Receiving Securities Daily B79, Shanghai
2022-80
2022 Government Grants Securities News 33, etc.
19
Announcement on Issuance Results of Non-public Offering of Securities Daily B99, Shanghai
2022-81 October
Corporate Bonds (Tranche II) in 2022 Securities News 81, etc.
2022
20
Announcement on Progress in the Provision of External Securities Daily B59, Shanghai
2022-82 October
Guarantee Securities News 57, etc.
2022
28
Securities Daily B221, Shanghai
2022-83 October 2022 Q3 Report
Securities News 84, etc.
2022
28
Announcement on Resolutions of 4th Meeting of the Tenth Securities Daily B221, Shanghai
2022-84 October
Board of Directors Securities News 84, etc.
2022
28
Notice on Convening 2022 Fifth Extraordinary General Securities Daily B221, Shanghai
2022-85 October
Meeting Securities News 84, etc.
2022
28
Announcement on Appointment of Audit Firms for 2022 Securities Daily B221, Shanghai
2022-86 October
Financial Statements and Internal Control Audit Securities News 84, etc.
2022
1
Announcement on Participation in 2022 Shenzhen Online Securities Daily B28, Shanghai
2022-87 November
Group Reception Day for Listed Company Investors Securities News 68, etc.
2022
15
Announcement on Resolutions of the 2022 Fifth Securities Daily B75, Shanghai
2022-88 November
Extraordinary General Meeting Securities News 52, etc.
2022
24 Securities Daily B33, Shanghai
2022-89 Announcement on Accumulative Lawsuits and Arbitrations
November Securities News 33, etc.
94
Konka Group Co., Ltd. Annual Report 2022
2022
24
Announcement on Progress of Security for Controlling Securities Daily B33, Shanghai
2022-90 November
Company Securities News 33, etc.
2022
7
Announcement on Resolutions of 5th Meeting of the Tenth Securities Daily B8, Shanghai
2022-91 December
Board of Directors Securities News 50, etc.
2022
7 Announcement on Financial Assistance to Sichuan
Securities Daily B8, Shanghai
2022-92 December Hongxinchen Real Estate Development Co., Ltd. Based on
Securities News 50, etc.
2022 Shareholding Proportion
7
Announcement on Loans Provided to Shareholders by Securities Daily B8, Shanghai
2022-93 December
Subsidiary Company Based on Equity Proportion Securities News 50, etc.
2022
7
Notice on Convening 2022 Sixth Extraordinary General Securities Daily B8, Shanghai
2022-94 December
Meeting Securities News 50, etc.
2022
17
Announcement on Progress of Security for Controlling Securities Daily B44, Shanghai
2022-95 December
Company Securities News 44, etc.
2022
24
Announcement on Resolutions of the 2022 Sixth Securities Daily B40, Shanghai
2022-96 December
Extraordinary General Meeting Securities News 57, etc.
2022
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
95
Konka Group Co., Ltd. Annual Report 2022
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Increase/decrease in the Reporting Period
Before After
(+/-)
Sha
res
Shares
as
as
divi
divide
den
nd
New d Percent
Percenta conver
Shares issue con Other Subtotal Shares age
ge (%) ted
s vert (%)
from
ed
capital
fro
reserv
m
es
pro
fit
1. Restricted shares 19,500 0.00% -19,500 -19,500 0 0.00%
1.3 Shares held by
other domestic 19,500 0.00% -19,500 -19,500 0 0.00%
investors
Shares held by
domestic natural 19,500 0.00% -19,500 -19,500 0 0.00%
persons
100.00 100.00
2,407,925,908 19,500 19,500 2,407,945,408
2. Unrestricted shares % %
2.1 RMB-
66.31
denominated ordinary 1,596,574,300 66.31% 19,500 19,500 1,596,593,800
shares %
2.2 Domestically 33.69
811,351,608 33.69% 811,351,608
listed foreign shares %
100.00 100.00
3. Total shares 2,407,945,408 2,407,945,408
% %
Reasons for the share changes:
√ Applicable □ Not applicable
During the Reporting Period, Mr. Sun Qingyan resigned as the Vice President of the Company for
personal reasons, and the 19,500 shares held by him in the Company locked up at the beginning of
the year shall be fully released after six months upon his resignation according to the applicable
laws and regulations.
Approval of the share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Effects of the share changes on the basic and diluted earnings per share, equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the prior year
and the prior accounting period, respectively:
96
Konka Group Co., Ltd. Annual Report 2022
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to
be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Increase in
Unlocked
Beginning restricted Ending
Name of in the
restricted shares in the restricted Reason for restriction Date of unlocking
shareholder current
shares current shares
period
period
Over six months upon his
Sun Qingyan 19,500 19,500 0 0 1 September 2022
resignation
Total 19,500 19,500 0 0 -- --
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable √ Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of ordinary Number of preferred
Number of preferred
Number of shareholders at the shareholders with resumed
shareholders with
ordinary 86,602 month-end prior to 86,570 0 voting rights at the month-end 0
resumed voting rights (if
shareholders the disclosure of this prior to the disclosure of this
any)
Report Report (if any)
5% or greater shareholders or top 10 shareholders
Share Increase/d Shares in pledge,
Total
Nature of holdi ecrease in Restricte marked or frozen
shares held Unrestricted
Name of shareholder sharehold ng the d shares
at the shares held
er perce Reporting held Status Shares
period-end
ntage Period
State-
OVERSEAS CHINESE
owned 21.75 523,746,93
TOWN HOLDINGS 0 0 523,746,932
legal % 2
COMPANY
person
CITIC SECURITIES Foreign
7.48 180,001,11
BROKERAGE (HONG legal 0 0 180,001,110
% 0
KONG) CO., LTD. person
Domestic
4.36 105,000,00
WANG JINGFENG natural -6,111,100 0 105,000,000
% 0
person
Foreign
GUOYUAN SECURITIES 2.46
legal 59,227,225 -73,100 0 59,227,225
BROKER (HK) CO., LTD. %
person
Foreign
HOLY TIME GROUP 2.38
legal 57,289,100 0 0 57,289,100
LIMITED %
person
97
Konka Group Co., Ltd. Annual Report 2022
Foreign
2.19
GAOLING FUND,L.P. legal 52,801,250 0 0 52,801,250
%
person
Foreign
0.96
NAM NGAI natural 23,019,800 452,260 0 23,019,800
%
person
State-
CHINA MERCHANTS
owned 0.81 19,457,72
SECURITIES (HK) 19,457,720 0 19,457,720
legal % 0
LIMITED
person
Foreign
BOCOM INTERNATIONAL 0.78
legal 18,896,037 0 0 18,896,037
SECURITIES LIMITED %
person
HONG KONG SECURITIES Foreign
0.63
CLEARING COMPANY legal 15,138,506 6,426,947 0 15,138,506
%
LTD. person
Strategic investor or general legal person
becoming a top-10 ordinary shareholder N/A
due to rights issue (if any) (see note 3)
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (OCT Group), holds
180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC
Related or acting-in-concert parties among
Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK)
the shareholders above
Limited. Happy Bloom Investment Limited and OCT Group are parties acting in concert.
Other than that, it is unknown whether the other shareholders are related parties or acting-
in-concert parties or not.
Explain if any of the shareholders above
was involved in entrusting/being entrusted N/A
with voting rights or waiving voting rights
Special account for share repurchases (if
any) among the top 10 shareholders (see None
note 10)
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
RMB-
OVERSEAS CHINESE TOWN 523,746,93
523,746,932 denominated
HOLDINGS COMPANY 2
ordinary stock
Domestically
CITIC SECURITIES BROKERAGE 180,001,11
180,001,110 listed foreign
(HONG KONG) CO., LTD. 0
stock
RMB-
105,000,00
WANG JINGFENG 105,000,000 denominated
0
ordinary stock
Domestically
GUOYUAN SECURITIES BROKER (HK)
59,227,225 listed foreign 59,227,225
CO., LTD.
stock
Domestically
HOLY TIME GROUP LIMITED 57,289,100 listed foreign 57,289,100
stock
Domestically
GAOLING FUND,L.P. 52,801,250 listed foreign 52,801,250
stock
Domestically
NAM NGAI 23,019,800 listed foreign 23,019,800
stock
Domestically
CHINA MERCHANTS SECURITIES
19,457,720 listed foreign 19,457,720
(HK) LIMITED
stock
Domestically
BOCOM INTERNATIONAL
18,896,037 listed foreign 18,896,037
SECURITIES LIMITED
stock
RMB-
HONG KONG SECURITIES CLEARING
15,138,506 denominated 15,138,506
COMPANY LTD.
ordinary stock
Related or acting-in-concert parties among Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
98
Konka Group Co., Ltd. Annual Report 2022
top 10 unrestricted public shareholders, as majority shareholder Overseas Chinese Town Holdings Company (OCT Group), holds
well as between top 10 unrestricted public 180,001,110 and 18,360,000 ordinary shares in the Company respectively through CITIC
shareholders and top 10 shareholders Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK)
Limited. Happy Bloom Investment Limited and OCT Group are parties acting in concert.
Other than that, it is unknown whether the other shareholders are related parties or acting-
in-concert parties or not.
Top 10 ordinary shareholders involved in
Wang Jingfeng holds 105,000,000 A-shares in the Company through his securities account
securities margin trading (if any) (see note
for customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
4)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting
Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a central state-owned legal person
Type of the controlling shareholder: legal person
Unifie
Legal Date
Name of d
representat of
actual social Principal activity
ive/person establi
controller credit
in charge shment
code
Export of textile, light industrial products, etc; import of self-used goods in
Shenzhen, mechanical equipment, light industrial products, etc. as approved by
the relevant authorities of Shenzhen (under Government Document JMB [92]
WJMGTSZZ No. A19024); compensation trade; investment in tourism and
Overseas
11 91440 relevant cultural industry (including art performance, entertainment and their
Chinese
Zhang Nove 30019 services, etc), industry, real estate, commerce & trade, packaging, decoration
Town
Zhengao mber 03461 and investment in printing industry. The convert of export commodities into
Holdings
1985 75T domestic sale and the domestic sales of import commodities. Travelling, rental
Company
of warehouses, culture and art, bonded warehouse of car donation, convention
and exhibition services (the projects involved in license management can be
operated after getting the relevant license first ); sales of automobile (sedan car
included)
As of 31 December 2022, Overseas Chinese Town Holdings Company directly held 47.01% equity of Shenzhen
Overseas Chinese Town Co., Ltd. (a company listed in Shenzhen Stock Exchange, SZ. 000069) and indirectly
Controlling
held 0.96% equity of Shenzhen Overseas Chinese Town Co., Ltd. through OCT Capital Investment Management
shareholder
Co., Ltd. Meanwhile, Shenzhen Overseas Chinese Town Co., Ltd. indirectly held 70.94% equity of OCT (Asia)
’s holdings
Holdings Ltd. (a company listed on the main Board of Hong Kong Stock Exchange, 3366.HK). Overseas Chinese
in other
Town Holdings Company indirectly held 53.88% equity of Yunnan Tourism Co., Ltd. (a company listed in
listed
Shenzhen Stock Exchange, SZ.002059).Overseas Chinese Town Holdings Company held 7.77% equity of China
companies
Everbright Bank Company Limited (a company listed on the main Board of Shanghai Stock Exchange
at home or
(SH.601818) and the main Board of Hong Kong Stock Exchange (6818.HK). Overseas Chinese Town Holdings
abroad in
Company indirectly held 2.74% equity of Zhejiang Century Huatong Group Co., Ltd. (a company listed in
the
Shenzhen Stock Exchange, SZ.002602) through its subsidiary Shenzhen OCT Capital Investment Management
Reporting
Co., Ltd. Overseas Chinese Town Holdings Company indirectly held 11.12% of equity of Jiangsu Guoxin
Period
Corporation Limited (a company listed in Shenzhen Stock Exchange, SZ. 002608) through its subsidiary
Shenzhen OCT Capital Investment Management Co., Ltd..
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Central institution for state-owned assets management
Type of the actual controller: legal person
Name of actual controller Legal representative/person in Date of Unified social Principal
99
Konka Group Co., Ltd. Annual Report 2022
charge establishment credit code activity
State-owned Assets Supervision and
Administration Commission of the Zhang Yuzhuo Not applicable Not applicable
State Council
Actual controller’s holdings in other listed companies at home or abroad in the Reporting Period Not applicable
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of
asset management.
□ Applicable √ Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder
or the Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all
shares of the Company held by Them
□ Applicable √ Not applicable
5. Other 10% or Greater Corporate Shareholders
□ Applicable √ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual
Controller, Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
IV Specific Implementation of Share Repurchases in the Reporting Period
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
100
Konka Group Co., Ltd. Annual Report 2022
□ Applicable √ Not applicable
101
Konka Group Co., Ltd. Annual Report 2022
Part VIII Preference Shares
□ Applicable √ Not applicable
No Preference shares in the Reporting Period.
102
Konka Group Co., Ltd. Annual Report 2022
Part IX Corporate Bonds
√ Applicable □ Not applicable
I Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.
II Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
Bonds
Way of
Value balance Interest Trade
Name Abbr. Code Issue date Due date redemptio
date (RMB’0, rate place
n
000)
Interests
shall be
paid
Privately placed
every
corporate bonds
21 year and Shenzhen
in 2021 of 8 January 8 January 8 January 1,000,000
Konk 114894 4.46% the Stock
Konka Group 2021 2021 2024 ,000.00
a 01 principals Exchange
Co., Ltd
shall be
(Tranche I)
repaid
when
expired.
Interests
shall be
paid
Privately placed
every
corporate bonds
21 year and Shenzhen
in 2021 of 21 May 21 May 21 May 500,000,0
Konk 133003 4.00% the Stock
Konka Group 2021 2021 2024 00.00
a 02 principals Exchange
Co., Ltd
shall be
(Tranche II)
repaid
when
expired.
Interests
shall be
paid
Privately placed
every
corporate bonds
21 year and Shenzhen
in 2021 of 9 July 9 July 9 July 800,000,0
Konk 133040 3.95% the Stock
Konka Group 2021 2021 2024 00.00
a 03 principals Exchange
Co., Ltd
shall be
(Tranche III)
repaid
when
expired.
Corporate bonds Interests
publicly offered shall be
to professional paid
22 Shenzhen
investors in 14 July 14 July 14 July 1,200,000 every
Konk 149987 3.23% Stock
2022 of Konka 2022 2022 2025 ,000.00 year and
a 01 Exchange
Group Co., Ltd. the
(Tranche I) principals
(Variety I) shall be
103
Konka Group Co., Ltd. Annual Report 2022
repaid
when
expired.
Interests
shall be
paid
Privately placed every
corporate bonds in 22 8 8 8 year and Shenzhen
2022 of Konka 600,000,0
Konk 133306 Septembe Septembe Septembe 3.30% the Stock
Group Co., Ltd 00.00
(Tranche I) a 03 r 2022 r 2022 r 2025 principals Exchange
(Variety I) shall be
repaid
when
expired.
Interests
shall be
paid
Privately placed every
corporate bonds in 22 18 18 18 year and Shenzhen
600,000,0
2021 of Konka Konk 133333 October October October 3.50% the Stock
Group Co., Ltd 00.00
a 05 2022 2022 2025 principals Exchange
(Tranche II)
shall be
repaid
when
expired.
“21 Konka 01”, “21 Konka 02”, “21 Konka 03”, “22 Konka 03” and “22 Konka 05” were
placed privately to professional investors meeting the requirements of management
method for investors eligibility of Shenzhen Stock Exchange, which not exceeding 200
Appropriate arrangement of the investors (if
any)
persons. “22 Konka 01” was offered publicly to professional institutional investors
meeting the requirements of Measures for the Administration of Issuing and Trading
Corporate Bonds and opening a qualified A-share securities account in Shenzhen Branch
of China Securities Depository and Clearing Corporation Limited.
Comprehensive protocol trading platform: Match-and-deal, click-and-deal, inquire-and-
Applicable trade mechanism
deal, bid-and-deal, and negotiate-and-deal
Risk of delisting (if any) and
countermeasures No
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the
Investor Protection Clause
□ Applicable √ Not applicable
3. Intermediary
Did the intermediary change during the Reporting Period?
□ Yes √ No
Signature Contact person of
Bond Intermediary Office address Contact number
accountant intermediary
Industrial 32/F, SK Building, No. 6,
Zhang Huifang,
Securities Co., Jianguomen Waidajie, / 010-50911203
Zhang Ning
Ltd Chaoyang District, Beijing
Centralized Business,
21 Konka 01 Finance and Business
21 Konka 02 District, Zone B, Zhongtian
ZTF Securities
21 Konka 03 Exhibition City, North / Qian Xi, Cai Dan 0755-28777990
Co., Ltd.
Changling Road, Guanshanhu
District, Guiyang, Guizhou
(North)
United Ratings No.2 Jianwai Street, / Liu Qi 010-85679696
104
Konka Group Co., Ltd. Annual Report 2022
Co., Ltd. Chaoyang District, Beijing
19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jinxing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing
Ruihua
Certified
Public 4/F, Building 2, Yard 16,
Accountants Xisihuan Middle Road, Liu Guibin Liu Guibin 010-88219191
(Special Haidian District, Beijing
General
Partnership)
Shinewing
Certified
8/F, Block A, Fu Hua
Public
Mansion, No. 8, Liu Jianhua, Tang Liu Jianhua, Tang
Accountants 028-62922886
Chaoyangmen Beidajie, Qimei Qimei
(Special
Dongcheng District, Beijing
General
Partnership)
Industrial 32/F, SK Building, No. 6,
Zhang Huifang,
Securities Co., Jianguomen Waidajie, / 010-50911203
Zhang Ning
Ltd Chaoyang District, Beijing
Centralized Business,
Finance and Business
District, Zone B, Zhongtian
ZTF Securities
Exhibition City, North / Qian Xi, Cai Dan 0755-28777990
Co., Ltd.
Changling Road, Guanshanhu
District, Guiyang, Guizhou
(North)
United Ratings No.2 Jianwai Street,
/ Liu Qi 010-85679696
22 Konka 01 Co., Ltd. Chaoyang District, Beijing
19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jinxing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing
Shinewing
Certified Guo Dongchao,
8/F, Block A, Fu Hua
Public Liu Lihong, Zhan
Mansion, No. 8, Liu Jianhua, Tang
Accountants Miaoling, Liu 028-62922886
Chaoyangmen Beidajie, Qimei
(Special Jianhua, Tang
Dongcheng District, Beijing
General Qimei
Partnership)
Industrial 32/F, SK Building, No. 6,
Zhang Huifang,
Securities Co., Jianguomen Waidajie, / 010-50911203
Zhang Ning
Ltd Chaoyang District, Beijing
Centralized Business,
Finance and Business
District, Zone B, Zhongtian
ZTF Securities
Exhibition City, North / Qian Xi, 0755-28777990
Co., Ltd.
Changling Road, Guanshanhu
District, Guiyang, Guizhou
22 Konka 03 (North)
22 Konka 05 19-25/F, Building 2, CP
Beijing
Center, Yard 20, Jinhe East Zhang Jinxing,
Yingke Law / 0755-36866600
Road, Chaoyang District, Han Jian
Firm
Beijing
Shinewing Guo Dongchao,
Certified 8/F, Block A, Fu Hua
Liu Lihong, Zhan
Public Mansion, No. 8, Liu Jianhua, Tang
Miaoling, Liu 020-28309500
Accountants Chaoyangmen Beidajie, Qimei
Jianhua, Tang
(Special Dongcheng District, Beijing
Qimei
General
105
Konka Group Co., Ltd. Annual Report 2022
Partnership)
4. List of the Usage of the Raised Funds
Unit: RMB
Whether is
consistent with
Rectification of
Operation of the usage, using
raised funds for
Unused special account plan and other
Bonds Total amount Amount spent violation
amount for raised funds agreements
operation (if
(if any) stipulated in the
any)
raising
specification
21 Konka
1,000,000,000.00 1,000,000,000.00 0
01
21 Konka
500,000,000.00 500,000,000.00 0
02
21 Konka
800,000,000.00 800,000,000.00 0
03
Yes
22 Konka
1,200,000,000.00 1,200,000,000.00 0
01
22 Konka
600,000,000.00 600,000,000.00 0
03
22 Konka
600,000,000.00 600,000,000.00 0
05
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee
Measures as well as Influence on Equity of Bond Investors during the Reporting Period
√ Applicable □ Not applicable
OCT Group provides full, unconditional and irrevocable joint liability guarantee for "21 Konka
01", "21 Konka 02", "21 Konka 03", “22 Konka 01”, “22 Konka 03” and “22 Konka 05”. The
Credit Enhancement Mechanisms, Redemption Plans and Other Redemption Security Measures
during the Reporting Period are executed according to agreement. No change occurred.
III Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
√ Applicable □ Not applicable
106
Konka Group Co., Ltd. Annual Report 2022
Impact on the company's
Item Details of loss Reason for loss production, operation and
solvency
The Company will base on its
main business, adhere to the
1. In 2022, while the scale of the consumer electronics
platform professional operation,
business declined, the gross profit of the Company's
implement lean management,
consumer electronics business declined significantly and
advocate long-term value, focus
incurred a certain amount of loss due to factors such as
on efficiency improvement,
fluctuations in raw material prices, increasingly fierce market
continue to promote cost
competition, continued low average retail prices of consumer
reduction and efficiency, cost
electronics products and rising shipping costs. 2. In 2022, the
control and efficiency, and
Company's semiconductor business continued to grow in
During the continue to optimize the
R&D investment, but as it was still in the small-volume
Reporting industrial structure. For the
industrialization stage, it was not able to achieve the
Period, the consumer electronics business,
corresponding revenue and profit in 2022, which affected the
Company's net the Company will continue to
overall earnings performance of the Company. 3. In 2022, in
profit loss promote the reform and upgrade
Net profit order to effectively revitalize the assets and further focus on
attributable to of the color TV business and
attributabl the main business, the Company took the initiative to divest
shareholders of expand and strengthen the white
e to and liquidate the assets that are not strong enough to
listed TV business, so as to achieve a
sharehold contribute to the development of the main business and make
companies was balance point in the sustainable
ers of low contribution to the expansion of the industrial chain, and
RMB1.471 development of the core
listed based on the principle of prudence, the Company recorded
billion, consumer electronics business
companies credit and asset impairment on some of the receivables and
accounting for in the restructuring and enhance
inventory that may be impaired. The Company made
14.42% of the the market voice, industry status
impairment provisions of RMB1,245 million for assets such
net assets at the and premium level. For the
as accounts receivable and inventories, resulting in a decline
end of the semiconductor business, the
in profitability. 4. Due to the macroeconomic environment,
previous year. Company will focus on core
the Company proactively contracted its industrial park and
semiconductor technology
investment business in 2022, resulting in a significant decline
breakthroughs, accelerate the
in related earnings. RMB4,047 million of gain or loss on
pace of semiconductor
disposal of non-current assets was incurred in 2021 due to
industrialization and enhance
the disposal of equity interests in some of the Company's
market effectiveness. The loss
subsidiaries. The gain or loss on disposal of non-current
for the reporting period will not
assets in 2022 was RMB755 million, with a decrease of
affect the normal production
81.33% year-on-year.
and operation of the Company
and the repayment of debts due.
VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□ Applicable √ Not applicable
VII Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0,000
Item 31 December 2022 31 December 2021 Increase/decrease
Current ratio 118.17% 88.92% 32.89%
Asset-liability ratio 77.74% 74.42% 3.32%
Quick ratio 88.59% 71.36% 24.15%
2022 2021 Increase/decrease
Net profit after deducting
-266,555.04 -325,079.81 18.00%
non-recurring profit or loss
107
Konka Group Co., Ltd. Annual Report 2022
Debt/EBITDA ratio -3.45% 13.59% -17.04%
Times interest earned -1.99 2.38 -183.61%
Times interest earned of cash 0.42 2.33 -81.97%
Times interest earned of
-1.12 2.97 -137.71%
EBITDA
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
108
Konka Group Co., Ltd. Annual Report 2022
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 24 March 2023
ShineWing Certified Public Accountants (Special General
Name of the independent auditor
Partnership)
Reference number of audit report XYZH//2023GZAA7B0025
Name of the certified public accountants Tang Qimei, Liu Lihong
Independent Auditor’s Report
XYZH//2023GZAA7B0025
All shareholders of Konka Group Co., Ltd.：
I. Opinion
We have audited the accompanying financial statements of Konka Group Co., Ltd. (the “Konka
Group”), which comprise the Company’s and consolidated balance sheets of the parent company as
at 31 December 2022, the Company’s and consolidated income statements of the parent company,
the Company’s and consolidated cash flow statements of the parent company, the Company’s and
consolidated statements of changes in shareholders’ equity of the parent company for the year then
ended, as well as the notes to the financial statements.
In our opinion, the financial statements attached were prepared in line with the regulations of
Accounting Standards for Business Enterprises in all significant aspects which gave a true and fair
view of the consolidated and parent financial position of the Company as at 31 December 2022 and
the consolidated and parent business performance and cash flow of the Company for 2022.
II. Basis for Opinion
We conducted our audit in accordance with Standards on Auditing for Certified Public Accountants.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. In accordance with professional ethics
for certified public accountants, we are independent with Foshan Huaxin Packing Co., Ltd. and we
have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the Current Period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
109
Konka Group Co., Ltd. Annual Report 2022
1. Recognition of operating revenues
Key audit matters Countermeasures of audit
Please refer to the notes to the (1) Evaluate and test income to confirm the effectiveness of key internal
financial statements "six, notes to the control design and operation;
consolidated financial statements" 47. (2) Obtain signed sales contracts, analyze relevant provisions, and
In 2022, Konka Group's consolidated evaluate whether the revenue recognition of Konka Group is in
financial statements confirmed compliance with the Accounting Standards for Business Enterprises;
operating income of (3) Obtain the sales list of Konka Group products, examine the
RMB29,607.8543 million, the mainly customers’ information registered with the industrial and commercial
revenue comes from the electronic administration, inquire the relevant personnel of Konka Group, and
business, trading business,and identify whether any of the customers is a related party to Konka Group;
environmental protection business, (4) Perform analytical procedures on revenue and costs, evaluate the
environmental protection business, rationality of sales revenue and gross profit margin changes;
etc. Due to the importance of revenue (5) Examine materials such as important sales contracts, orders, invoices,
to the financial statements as a whole, goods ownership transfer certificates, bank receipts, invoices; regarding
and the inherent misstatement risk of the industry trade business, learn about trading backgrounds and business
management's manipulation of nature to decide whether Konka Group is the main responsibility entity
revenue recognition in order to or an agent; select important customers, verify the transaction amounts
achieve specific goals or and balances in writing to verify the truthfulness, completeness and
expectations, we make revenue accuracy of revenue;
recognition a key audit matter. (6) Conduct a cut-off test on sales revenue.
2. Recognition of investment income
Key audit matters Countermeasures of audit
Please refer to the notes to the (1) Evaluate and test income to confirm the effectiveness of key internal
financial statements "six, notes to the control design and operation;
consolidated financial statements"54. (2) Obtaining relevant decision-making documents for the disposal of the
In 2022, Konka Group's consolidated target company's equity, as well as equity transfer agreements and
financial statements confirmed transaction documents, conducting interviews with the company's
investment income of RMB936.0064 management and selected equity transferees to understand the
million Mainly for the disposal of commercial background and rationality of the equity transfer, in order to
investment income generated by long- determine the authenticity of the equity transfer;
term equity investment, the gains (3) Obtain Konka Group’s customer list, examine the customers’
from the remeasurement of the information registered with the industrial and commercial administration,
remaining equity at equity method on inquire the relevant personnel of Konka Group, and identify whether any
the day of the loss of control rights at of the customers is a related party to Konka Group;
fair value. Since the amount of (4) Perform analytical procedures on revenue and costs, evaluate the
investment income is significant, we rationality of sales revenue and gross profit margin changes;
110
Konka Group Co., Ltd. Annual Report 2022
1. Recognition of operating revenues
Key audit matters Countermeasures of audit
confirm the recognition of investment (5) Examine materials such as important sales contracts, orders, invoices,
income as a key audit matter. goods ownership transfer certificates, bank receipts, invoices; regarding
the industry trade business, learn about trading backgrounds and business
nature to decide whether Konka Group is the main responsibility entity
or an agent; select important customers, verify the transaction amounts
and balances in writing to verify the truthfulness, completeness and
accuracy of revenue; and
(6) Conduct a cut-off test on sales revenue.
IV. Other Information
The management of the Company is responsible for the other information. The other information
comprises all of the information included in the annual report for 2022 other than the financial
statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibility of Management and Those Charged with Governance for the Financial
Statements
The management of the Company is responsible for the preparation and fair presentation of these
financial statements in accordance with Accounting Standards for Business Enterprises to make
them a fair presentation and designing, implementing and maintaining internal control relevant to
the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the management of the Company is responsible for assessing
the Company’s ability to continue as a going concern, disclosing, if applicable, matters related to
going concern and using the going concern basis of accounting unless the management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
VI. CPA’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
111
Konka Group Co., Ltd. Annual Report 2022
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. We report our opinion solely to you, as a body, and for no other purpose.
We do not assume responsibility towards or accept liability to any other person for the contents of
this report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of major misstatement of financial statements due to fraud or errors,
design and implement audit procedures to deal with these risks, and obtain sufficient and
appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion,
forgery, intentional omissions, misrepresentation, or overriding internal control, the risk of failing to
detect a major misstatement due to fraud is higher than the risk of failing to detect a major
misstatement due to error.
(2) Understand the internal control related to auditing in order to design appropriate auditing
procedures.
(3) Evaluate the appropriateness of management's selection of accounting policies and the
rationality of accounting estimates and related disclosures.
(4) To draw conclusions on the appropriateness of the management's use of continuous operation
assumptions. At the same time, based on the audit evidence obtained, a conclusion can be drawn on
whether there is a material uncertainty that may cause significant doubts about Konka Group's
ability to continue operations. If we conclude that there are significant uncertainties, the auditing
standards require us to draw the attention of the users of the statements to the relevant disclosures in
the financial statements in the audit report; if the disclosures are insufficient, we should issue a non-
reserved opinion. Our conclusion is based on the information available as of the date of the audit
report. However, future events or circumstances may prevent Konka Group from continuing its
operations.
(5) Evaluate the overall presentation, structure, and content of the financial statements, and evaluate
whether the financial statements fairly reflect related transactions and events.
(6) Obtain sufficient and appropriate audit evidence on the financial information of the entities or
business activities in Konka Group to express audit opinions on the financial statements. We are
responsible for guiding, supervising and executing group audits, and assume full responsibility for
audit opinions.
We communicate with those charged with governance regarding, among other matters, the planned
112
Konka Group Co., Ltd. Annual Report 2022
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the Current Period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
ShineWing Certified Public Accountants CPA: (Engagement Partner)
(Special General Partnership)
CPA:
BeijingChina 24 March 2023
113
Konka Group Co., Ltd. Annual Report 2022
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
31 December 2022
Unit: RMB
Item 31 December 2022 1 January 2022
Current assets:
Monetary assets 5,988,095,490.71 6,489,553,211.24
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable 1,059,737,243.54 1,777,477,481.28
Accounts receivable 2,036,734,836.22 3,397,729,481.07
Accounts receivable financing 237,187,228.44 71,490,688.54
Prepayments 389,947,652.39 631,400,953.86
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,442,124,845.58 1,837,459,705.64
Including: Interest receivable 3,878,580.64 2,573,082.79
Dividends receivable 272,999.43
Financial assets purchased under resale agreements
Inventories 4,409,767,756.22 4,068,537,809.18
Contract assets
Assets held for sale
Current portion of non-current assets 14,630,000.00 28,105,523.78
Other current assets 2,038,841,225.83 2,299,963,391.24
Total current assets 17,617,066,278.93 20,601,718,245.83
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 800,400.00 18,495,499.14
Long-term equity investments 6,351,232,955.58 5,902,588,939.51
Investments in other equity instruments 23,841,337.16 23,841,337.16
Other non-current financial assets 2,639,662,273.32 2,293,361,603.68
Investment property 802,407,844.60 776,525,061.54
Fixed assets 4,114,029,693.38 4,010,295,277.14
Construction in progress 1,990,361,377.07 1,490,777,831.39
Productive living assets
Oil and gas assets
Right-of-use assets 50,019,838.68 71,210,415.37
Intangible assets 1,116,739,707.27 975,295,916.08
Development costs 16,870,310.70
Goodwill 22,196,735.11 22,196,735.11
Long-term prepaid expense 387,309,503.07 297,497,383.39
Deferred income tax assets 1,190,454,750.62 725,315,725.10
Other non-current assets 1,710,245,378.26 2,648,530,490.12
Total non-current assets 20,399,301,794.12 19,272,802,525.43
114
Konka Group Co., Ltd. Annual Report 2022
Total assets 38,016,368,073.05 39,874,520,771.26
Current liabilities:
Short-term borrowings 7,579,559,304.97 9,920,675,121.08
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,054,573,822.04 1,116,336,958.91
Accounts payable 2,659,946,562.93 3,784,315,091.41
Advances from customers 825.69
Contract liabilities 601,044,358.35 652,910,408.02
Financial assets sold under repurchase agreements
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 348,608,204.05 410,747,084.80
Taxes payable 291,102,679.36 295,825,170.41
Other payables 1,895,711,373.34 1,788,177,748.59
Including: Interest payable 29,590,464.00 174,383,177.08
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 409,220,030.69 5,089,586,269.32
Other current liabilities 68,449,783.71 109,742,188.24
Total current liabilities 14,908,216,945.13 23,168,316,040.78
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 8,906,931,402.89 3,529,140,539.09
Bonds payable 4,792,392,044.13 2,293,698,899.30
Including: Preferred shares
Perpetual bonds
Lease liabilities 36,586,639.16 42,532,869.63
Long-term payables 7,964,127.18 140,687,570.78
Long-term employee benefits payable 4,894,209.73 5,111,296.75
Provisions 159,395,579.55 106,276,535.85
Deferred income 334,844,966.31 206,302,424.92
Deferred income tax liabilities 89,535,936.97 76,894,581.97
Other non-current liabilities 314,233,260.08 104,610,663.76
Total non-current liabilities 14,646,778,166.00 6,505,255,382.05
Total liabilities 29,554,995,111.13 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 365,247,361.05 234,389,963.10
Less: Treasury stock
Other comprehensive income -14,265,181.63 -20,336,087.87
Specific reserve
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General reserve
Retained earnings 3,637,291,770.33 5,229,098,788.94
Total equity attributable to owners of the Company as
7,640,399,721.99 9,095,278,436.41
the parent
Non-controlling interests 820,973,239.93 1,105,670,912.02
Total owners’ equity 8,461,372,961.92 10,200,949,348.43
115
Konka Group Co., Ltd. Annual Report 2022
Total liabilities and owners’ equity 38,016,368,073.05 39,874,520,771.26
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2022 1 January 2022
Current assets:
Monetary assets 3,987,295,740.42 4,809,203,282.52
Held-for-trading financial assets
Derivative financial assets
Notes receivable 353,764,106.66 912,584,879.70
Accounts receivable 4,473,878,994.50 4,468,684,877.11
Accounts receivable financing 6,250,000.00
Prepayments 2,105,477,988.44 1,617,640,913.05
Other receivables 10,342,326,355.05 10,925,066,231.53
Including: Interest receivable 3,878,580.64 2,002,526.91
Dividends receivable 393,563,347.61 383,943,256.80
Inventories 173,658,748.80 192,035,723.31
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1,581,440,821.79 1,736,172,492.35
Total current assets 23,017,842,755.66 24,667,638,399.57
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 9,100,689,137.42 8,633,142,223.64
Investments in other equity instruments 17,940,215.36 17,940,215.36
Other non-current financial assets 396,353,137.96 200,326,093.02
Investment property 439,835,051.61 455,475,442.43
Fixed assets 418,021,638.28 398,611,899.13
Construction in progress 481,659,536.66 304,489,347.00
Productive living assets
Oil and gas assets
Right-of-use assets 1,341,125.40 4,023,376.21
Intangible assets 65,620,126.31 55,814,854.54
Development costs
Goodwill
Long-term prepaid expense 36,665,581.09 31,718,868.00
Deferred income tax assets 1,127,531,647.49 711,814,124.48
Other non-current assets 458,931.60
Total non-current assets 12,086,116,129.18 10,813,356,443.81
Total assets 35,103,958,884.84 35,480,994,843.38
Current liabilities:
Short-term borrowings 2,217,049,472.22 4,259,749,597.92
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 890,526,510.04 1,126,421,923.99
Accounts payable 6,918,579,963.57 8,297,778,584.91
Advances from customers
Contract liabilities 2,445,363,632.98 740,817,658.30
Employee benefits payable 90,137,022.47 128,148,938.08
Taxes payable 4,095,684.11 8,022,098.02
116
Konka Group Co., Ltd. Annual Report 2022
Other payables 3,941,891,644.62 4,155,006,946.60
Including: Interest payable 29,271,307.22 171,516,416.71
Dividends payable
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 151,933,839.55 4,715,415,917.78
Other current liabilities 7,129,729.38 11,124,209.72
Total current liabilities 16,666,707,498.94 23,442,485,875.32
Non-current liabilities:
Long-term borrowings 8,261,287,052.44 3,161,298,604.12
Bonds payable 4,792,392,044.13 2,293,698,899.30
Including: Preferred shares
Perpetual bonds
Lease liabilities 1,664,232.11
Long-term payables
Long-term employee benefits payable
Provisions 83,666,032.25 572,097.48
Deferred income 43,377,324.62 36,243,964.61
Deferred income tax liabilities
Other non-current liabilities 42,948,698.55 43,677,187.49
Total non-current liabilities 13,223,671,151.99 5,537,154,985.11
Total liabilities 29,890,378,650.93 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 241,044,390.55 110,696,992.60
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 1,306,066,395.60 2,724,187,542.59
Total owners’ equity 5,213,580,233.91 6,501,353,982.95
Total liabilities and owners’ equity 35,103,958,884.84 35,480,994,843.38
3. Consolidated Income Statement
Unit: RMB
Item 2022 2021
1. Revenue 29,607,854,255.27 49,106,513,669.58
Including: Operating revenue 29,607,854,255.27 49,106,513,669.58
Interest revenue
Insurance premium income
Handling charge and commission income
2. Costs and expenses 32,164,076,308.01 51,466,453,430.94
Including: Cost of sales 28,788,638,393.88 47,401,884,981.53
Interest costs
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 119,339,820.01 107,078,675.16
Selling expense 1,240,144,735.77 1,428,062,895.37
117
Konka Group Co., Ltd. Annual Report 2022
Administrative expense 949,647,590.28 960,449,117.12
R&D expense 543,882,024.89 616,335,488.01
Finance costs 522,423,743.18 952,642,273.75
Including: Interest expense 913,721,408.10 1,003,080,641.99
Interest income 237,115,652.09 169,492,982.89
Add: Other income 928,712,500.81 1,353,534,580.11
Return on investment (“-” for loss) 936,006,397.44 4,216,806,949.38
Including: Share of profit or loss of joint ventures and
123,392,731.97 78,926,555.74
associates
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -40,731,333.54 52,490,907.33
Credit impairment loss (“-” for loss) -949,885,019.53 -1,107,273,681.31
Asset impairment loss (“-” for loss) -295,395,852.33 -643,102,386.02
Asset disposal income (“-” for loss) 9,580,708.29 571,964.16
3. Operating profit (“-” for loss) -1,967,934,651.60 1,513,088,572.29
Add: Non-operating income 125,139,042.00 82,601,532.35
Less: Non-operating expense 224,724,245.84 24,444,724.35
4. Profit before tax (“-” for loss) -2,067,519,855.44 1,571,245,380.29
Less: Income tax expense -297,356,565.55 764,544,554.19
5. Net profit (“-” for net loss) -1,770,163,289.89 806,700,826.10
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for
-1,770,163,289.89 806,700,826.10
net loss)
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
-1,471,409,748.21 905,352,997.68
Company as the parent
5.2.1 Net profit attributable to non-controlling interests -298,753,541.68 -98,652,171.58
6. Other comprehensive income, net of tax 7,669,161.80 -6,210,784.44
Attributable to owners of the Company as the parent 6,070,906.24 -3,753,045.45
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 6,070,906.24 -3,753,045.45
6.2.1 Other comprehensive income that will be
-2,814,803.62 1,182,217.31
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of investments in other
debt obligations
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in
other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of
8,885,709.86 -4,935,262.76
foreign currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests 1,598,255.56 -2,457,738.99
7. Total comprehensive income -1,762,494,128.09 800,490,041.66
Attributable to owners of the Company as the parent -1,465,338,841.97 901,599,952.23
Attributable to non-controlling interests -297,155,286.12 -101,109,910.57
118
Konka Group Co., Ltd. Annual Report 2022
8. Earnings per share
8.1 Basic earnings per share -0.6111 0.3760
8.2 Diluted earnings per share -0.6111 0.3760
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2022 2021
1. Operating revenue 1,811,783,519.02 2,866,801,648.83
Less: Cost of sales 1,962,490,364.97 2,801,504,839.24
Taxes and surcharges 15,338,452.88 12,498,811.40
Selling expense 366,876,186.97 424,186,040.12
Administrative expense 336,016,963.92 382,489,529.42
R&D expense 72,787,542.14 97,574,600.53
Finance costs 285,666,822.84 483,733,481.27
Including: Interest costs 819,229,878.82 839,889,878.68
Interest revenue 353,261,761.47 452,535,196.29
Add: Other income 54,121,427.81 39,245,757.36
Return on investment (“-” for loss) 538,946,392.20 3,464,665,015.66
Including: Share of profit or loss of joint ventures and
138,908,805.41 94,791,865.50
associates
Income from the derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -44,886,112.74 -12,011,365.31
Credit impairment loss (“-” for loss) -711,816,020.43 -1,004,145,022.47
Asset impairment loss (“-” for loss) -355,291,000.36 -556,453,134.90
Asset disposal income (“-” for loss) 6,034,182.85
2. Operating profit (“-” for loss) -1,740,283,945.37 596,115,597.19
Add: Non-operating income 91,504,267.54 13,373,472.37
Less: Non-operating expense 64,661,744.87 18,967,155.53
3. Profit before tax (“-” for loss) -1,713,441,422.70 590,521,914.03
Less: Income tax expense -415,717,523.01 265,929,368.36
4. Net profit (“-” for net loss) -1,297,723,899.69 324,592,545.67
4.1 Net profit from continuing operations (“-” for net
-1,297,723,899.69 324,592,545.67
loss)
4.2 Net profit from discontinued operations (“-” for
net loss)
5. Other comprehensive income, net of tax 1,182,217.31
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit schemes
5.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other
equity instruments
5.1.4 Changes in the fair value arising from changes in
own credit risk
5.1.5 Other
119
Konka Group Co., Ltd. Annual Report 2022
5.2 Items that will be reclassified to profit or loss 1,182,217.31
5.2.1 Other comprehensive income that will be
1,182,217.31
reclassified to profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Credit impairment allowance for investments in
other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of foreign
currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income -1,297,723,899.69 325,774,762.98
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
31,247,109,491.35 49,515,088,981.33
services
Net increase in customer deposits and interbank
deposits
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy
holders
Interest, handling charges and commissions received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase
transactions
Net proceeds from acting trading of securities
Tax rebates 622,846,091.66 419,652,399.70
Cash generated from other operating activities 1,597,087,027.13 2,016,982,305.72
Subtotal of cash generated from operating activities 33,467,042,610.14 51,951,723,686.75
Payments for commodities and services 29,639,887,809.19 46,186,429,808.61
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 1,800,638,478.78 1,952,798,829.91
Taxes paid 585,416,375.42 862,563,882.08
Cash used in other operating activities 1,969,402,988.58 2,141,174,772.04
Subtotal of cash used in operating activities 33,995,345,651.97 51,142,967,292.64
Net cash generated from/used in operating activities -528,303,041.83 808,756,394.11
2. Cash flows from investing activities:
Proceeds from disinvestment 875,506,214.56 711,179,541.54
120
Konka Group Co., Ltd. Annual Report 2022
Return on investment 128,778,266.85 98,795,653.56
Net proceeds from the disposal of fixed assets,
9,239,243.90 235,061,583.74
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
297,094,350.04 2,569,725,512.90
other business units
Cash generated from other investing activities 3,988,535,308.42 2,388,474,099.33
Subtotal of cash generated from investing activities 5,299,153,383.77 6,003,236,391.07
Payments for the acquisition of fixed assets, intangible
3,613,087,559.62 6,639,941,735.82
assets and other long-lived assets
Payments for investments 877,816,559.18 841,389,150.64
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
96,500,200.00
other business units
Cash used in other investing activities 482,014,454.76 1,110,357,931.34
Subtotal of cash used in investing activities 4,972,918,573.56 8,688,189,017.80
Net cash generated from/used in investing activities 326,234,810.21 -2,684,952,626.73
3. Cash flows from financing activities:
Capital contributions received 87,895,628.12 149,069,787.60
Including: Capital contributions by non-controlling
87,895,628.12 149,069,787.60
interests to subsidiaries
Borrowings raised 20,760,552,594.08 23,661,013,892.77
Cash generated from other financing activities 525,285,976.82 1,019,124,723.01
Subtotal of cash generated from financing activities 21,373,734,199.02 24,829,208,403.38
Repayment of borrowings 19,821,101,947.09 19,372,566,049.47
Interest and dividends paid 1,025,755,719.07 963,157,376.97
Including: Dividends paid by subsidiaries to non-
110,680,000.00 49,620,733.43
controlling interests
Cash used in other financing activities 859,164,470.60 928,627,586.95
Subtotal of cash used in financing activities 21,706,022,136.76 21,264,351,013.39
Net cash generated from/used in financing activities -332,287,937.74 3,564,857,389.99
4. Effect of foreign exchange rates changes on cash
27,920,961.23 -18,370,051.58
and cash equivalents
5. Net increase in cash and cash equivalents -506,435,208.13 1,670,291,105.79
Add: Cash and cash equivalents, beginning of the
5,968,347,219.03 4,298,056,113.24
period
6. Cash and cash equivalents, end of the period 5,461,912,010.90 5,968,347,219.03
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2022 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
7,297,996,873.73 5,382,231,744.24
services
Tax rebates 230,063,490.93 146,315,048.47
Cash generated from other operating activities 372,486,582.46 354,644,830.80
Subtotal of cash generated from operating activities 7,900,546,947.12 5,883,191,623.51
Payments for commodities and services 7,900,208,310.15 4,801,085,160.78
Cash paid to and for employees 312,957,158.05 305,846,589.21
Taxes paid 44,490,340.42 17,618,283.94
Cash used in other operating activities 927,360,896.15 1,090,364,534.12
Subtotal of cash used in operating activities 9,185,016,704.77 6,214,914,568.05
Net cash generated from/used in operating activities -1,284,469,757.65 -331,722,944.54
2. Cash flows from investing activities:
Proceeds from disinvestment 572,941,738.40 3,791,610,018.69
Return on investment 70,285,307.27 416,108,161.42
Net proceeds from the disposal of fixed assets,
66,770.14 250,499.51
intangible assets and other long-lived assets
121
Konka Group Co., Ltd. Annual Report 2022
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities 6,707,788,692.79 5,806,654,263.21
Subtotal of cash generated from investing activities 7,351,082,508.60 10,014,622,942.83
Payments for the acquisition of fixed assets, intangible
219,097,737.67 193,906,338.75
assets and other long-lived assets
Payments for investments 896,121,280.49 516,428,500.00
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 6,311,902,161.21 8,187,892,613.35
Subtotal of cash used in investing activities 7,427,121,179.37 8,898,227,452.10
Net cash generated from/used in investing activities -76,038,670.77 1,116,395,490.73
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 17,271,455,216.03 16,431,809,395.06
Cash generated from other financing activities 15,043,752,843.76 12,359,266,361.42
Subtotal of cash generated from financing activities 32,315,208,059.79 28,791,075,756.48
Repayment of borrowings 15,948,765,699.19 15,084,306,762.28
Interest and dividends paid 814,951,365.94 782,072,702.29
Cash used in other financing activities 15,040,575,205.97 11,934,250,317.89
Subtotal of cash used in financing activities 31,804,292,271.10 27,800,629,782.46
Net cash generated from/used in financing activities 510,915,788.69 990,445,974.02
4. Effect of foreign exchange rates changes on cash
597,369.19 -3,272,298.44
and cash equivalents
5. Net increase in cash and cash equivalents -848,995,270.54 1,771,846,221.77
Add: Cash and cash equivalents, beginning of the
4,682,608,814.76 2,910,762,592.99
period
6. Cash and cash equivalents, end of the period 3,833,613,544.22 4,682,608,814.76
122
Konka Group Co., Ltd. Annual Report 2022
7. Consolidated Statements of Changes in Owners’ Equity
2022
Unit: RMB
2022
Equity attributable to owners of the Company as the parent
Other equity
O
instruments
Less: Spec Gen t
Item O Other Non-controlling Total owners’
Prefe Capital Trea ific eral h
Share capital Perpet t comprehensive Surplus reserves Retained earnings Subtotal interests equity
rred reserves sury reser reser e
ual h income
share stock ve ve r
bonds e
s
r
1. Balance as at the end of the
2,407,945,408.00 234,389,963.10 -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
prior year
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
2,407,945,408.00 234,389,963.10 -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 the year
3. Increase/ decrease in the
130,857,397.95 6,070,906.24 -1,591,807,018.61 -1,454,878,714.42 -284,697,672.09 -1,739,576,386.51
period (“-” for decrease)
3.1 Total comprehensive
6,070,906.24 -1,471,409,748.21 -1,465,338,841.97 -297,155,286.12 -1,762,494,128.09
income
3.2 Capital increased and
130,857,397.95 130,857,397.95 123,636,214.83 254,493,612.78
reduced by owners
3.2.1 Ordinary shares increased
87,895,628.12 87,895,628.12
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 130,857,397.95 130,857,397.95 35,740,586.71 166,597,984.66
3.3 Profit distribution -120,397,270.40 -120,397,270.40 -110,680,000.00 -231,077,270.40
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to
-120,397,270.40 -120,397,270.40 -110,680,000.00 -231,077,270.40
owners (or shareholders)
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital
reserves
123
Konka Group Co., Ltd. Annual Report 2022
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 -498,600.80 -498,600.80
4. Balance as at the end of the
2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,637,291,770.33 7,640,399,721.99 820,973,239.93 8,461,372,961.92
period
2021
Unit: RMB
2021
Equity attributable to owners of the Company as the parent
Other equity
O
instruments
Less: Spec Gen t
Item Per Other Non-controlling Total owners’
Prefe Treas ific eral Retained h
Share capital petu O Capital reserves comprehensive Surplus reserves Subtotal interests equity
rred ury reser reser earnings e
al th income
share stock ve ve r
bon er
s
ds
1. Balance as at the end of the
2,407,945,408.00 230,185,310.09 -16,583,042.42 1,211,721,109.67 4,595,371,391.63 8,428,640,176.97 2,292,254,947.67 10,720,895,124.64
prior year
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
2,407,945,408.00 230,185,310.09 -16,583,042.42 1,211,721,109.67 4,595,371,391.63 8,428,640,176.97 2,292,254,947.67 10,720,895,124.64
of the year
3. Increase/ decrease in the
4,204,653.01 -3,753,045.45 32,459,254.57 633,727,397.31 666,638,259.44 -1,186,584,035.65 -519,945,776.21
period (“-” for decrease)
3.1 Total comprehensive
-3,753,045.45 905,352,997.68 901,599,952.23 -101,109,910.57 800,490,041.66
income
3.2 Capital increased and
4,204,653.01 4,204,653.01 -1,015,079,437.90 -1,010,874,784.89
reduced by owners
3.2.1 Ordinary shares
79,947,914.99 79,947,914.99
increased by owners
3.2.2 Capital increased by
holders of other equity
instruments
124
Konka Group Co., Ltd. Annual Report 2022
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other 4,204,653.01 4,204,653.01 -1,095,027,352.89 -1,090,822,699.88
3.3 Profit distribution 32,459,254.57 -273,253,795.37 -240,794,540.80 -42,123,733.44 -282,918,274.24
3.3.1 Appropriation to
32,459,254.57 -32,459,254.57
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to
-240,794,540.80 -240,794,540.80 -42,123,733.44 -282,918,274.24
owners (or shareholders)
3.3.4 Other
3.4 Transfers within owners’
-28,270,953.74 -28,270,953.74
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 -28,270,953.74 -28,270,953.74
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other 1,628,195.00 1,628,195.00 1,628,195.00
4. Balance as at the end of the
2,407,945,408.00 234,389,963.10 -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
period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2022
Unit: RMB
2022
Other equity instruments O
t
Less: Other
Item Preferr Perpetu Specific h
Share capital Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
ed al Other reserve e
stock income
shares bonds r
1. Balance as at the end of the prior year 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
Add: Adjustment for change in accounting
policy
125
Konka Group Co., Ltd. Annual Report 2022
Adjustment for correction of previous
error
Other adjustments 23.10 23.10
2. Balance as at the beginning of the year 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
3. Increase/ decrease in the period (“-” for
130,347,397.95 -1,418,121,170.09 -1,287,773,772.14
decrease)
3.1 Total comprehensive income -1,297,723,899.69 -1,297,723,899.69
3.2 Capital increased and reduced by
130,347,397.95 130,347,397.95
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 130,347,397.95 130,347,397.95
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 period 2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,306,066,395.60 5,213,580,233.91
2021
Unit: RMB
2021
Other equity instruments O
t
Less: Other
Item Perpetu Specific h
Share capital Preferre Capital reserves Treasury comprehensive Surplus reserves Retained earnings Total owners’ equity
al Other reserve e
d shares stock income
bonds r
1. Balance as at the end of the 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 320,463,787.20 320,463,787.20
126
Konka Group Co., Ltd. Annual Report 2022
2. Balance as at the beginning of the year 2,407,945,408.00 112,570,352.72 -2,682,217.31 1,227,564,785.19 2,672,848,792.29 6,418,247,120.89
3. Increase/ decrease in the period (“-”
-1,873,360.12 1,182,217.31 32,459,254.57 51,338,750.30 83,106,862.06
for decrease)
3.1 Total comprehensive income 1,182,217.31 324,592,545.67 325,774,762.98
3.2 Capital increased and reduced by
-1,873,360.12 -1,873,360.12
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 -1,873,360.12 -1,873,360.12
3.3 Profit distribution 32,459,254.57 -273,253,795.37 -240,794,540.80
3.3.1 Appropriation to surplus reserves 32,459,254.57 -32,459,254.57
3.3.2 Appropriation to owners (or
-240,794,540.80 -240,794,540.80
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 period 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
127
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
I. Company Profile
1. Establishment
Konka Group Co., Ltd. (hereinafter referred to as 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 31 December 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 24 March 2023.
II. Consolidation scope
The Company has a total of 127 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 20 entities including Jiangxi Konka High-tech Park Operation and
Management Co., Ltd., Shangrao Konka Electronic Technology Innovation Co., Ltd. and Konka
Photovoltaic Technology Co., Ltd. due to incorporation or acquisition and decreased by 13
households including Xi'an Huasheng Jiacheng Real Estate Co., Ltd. and Hefei KONSEMI
Storage Technology 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
128
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
1 Shenzhen Konka Electronics Technology Co., Ltd. Electronics Technology
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
Liaoyang Kangshun Renewable Resources Co., Ltd. Liaoyang Kangshun
10
Renewable
11 Nanjing Konka Electronics Co., Ltd. Nanjing Konka
Chuzhou Konka Precision Intelligent Manufacturing Chuzhou Konka
12
Technology Co., 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
17 Suining Konka Flexible Electronic Technology Co., Ltd. Konka Flexible Electronic
18 Suining Konka Hongye Electronics Co., Ltd. Konka Hongye Electronics
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
Frestec Household
Henan Frestec Household Appliances Co., Ltd.
Appliances
27
Henan Frestec Smart Home Technology Co., Ltd. Frestec Smart Home
129
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
28
Shenzhen Konka Investment Holdings Co., Ltd. Konka Investment
29
Yibin Konka Technology
Yibin Konka Technology Park Operation Co., Ltd.
Park
30
Shenzhen Konka Capital Equity Investment Management
Konka Capital
Co., Ltd.
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
Suining Konka Industrial Park Development Co., Ltd.
Park
38
Suining Konka Electronic Technological Innovation Co., Suining Electronic
Ltd. Technological 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.,
Mobile Interconnection
Ltd.
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., Konka Xinyun
Ltd. Semiconductor
51
Konka Industrial and Trade Technology (Shenzhen) Co., Industrial and Trade
130
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
Ltd. 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 Chuangzhi
Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Electrical 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 Telecommunication
Shenzhen Konka Telecommunications Technology Co., Ltd.
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
63
Chongqing Optoelectronic
Chongqing Konka Optoelectronic Technology Research
Technology Research
Institute Co., Ltd.
Institute
64
Yibin Kangrun Environmental Technology Co., Ltd. Yibin Kangrun
65
Yibin Kangrun Medical Waste Centralized Treatment Co., Yibin Kangrun Medical
Ltd.
66
Yibin Kangrun Environmental Protection Power Generation Yibin Kangrun
Co., Ltd. Environmental 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 Jiangxi High Transparent
Co., Ltd. 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
131
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
73
Konka Huanjia (Henan) Environmental Technology Co.,
Konka Huanjia (Henan)
Ltd.
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.,
Chongqing Kangxingrui
Ltd.
79
Chongqing Kangxingrui Scraped Automobile Recycling Chongqing Kangxingrui
Co., Ltd. Automobile Recycling
80
Shenzhen Konka Unifortune Technology Co., Ltd. Konka Unifortune
81
Jiali International (Hong Kong) Limited Jiali International
82
Sichuan Kangjiatong Technology Co., Ltd. Kangjiatong
83
Kanghong (Yantai)
Kanghong (Yantai) Environmental Technology Co., Ltd.
Environmental
84
Jiangkang (Shanghai)
Jiangkang (Shanghai) Technology Co., Ltd.
Technology
85
Shenzhen Konka Intelligent Manufacturing Technology Co., Konka Intelligent
Ltd. 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
91
Chengdu Anren Konka Cultural and Creative Incubator
Chengdu Anren
Management 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
132
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
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
100
Chain Kingdom Memory Technologies Co., Limited Chain Kingdom Memory
Technologies
101
Chain Kingdom Memory Technologies (Shenzhen) Co., Chain Kingdom Memory
Limited Technologies (Shenzhen)
102
Hongjet (Hong Kong) Company Limited Hongjet
103
Xi'an Feihe Real Estate Development Co., Ltd. Xi'an Feihe
104
Chongqing Xinyuan Semiconductor Co., Ltd. Chongqing Xinyuan
Semiconductor
105
Jiangxi Konka Industrial Park Development Co. Ltd. Jiangxi Konka Industrial Park
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., Kangxiaojia Digital
Ltd.
109 Shenzhen Kanghong Dongsheng Investment Partnership
Kanghong Dongsheng
(Limited Partnership)
110
Shenzhen Yijiakang Smart Terminal Technology Co., Ltd. Yijiakang Smart Terminal
111
Guizhou Kangkai Material Technology Co., Ltd. Guizhou Kangkai Material
Technology
112
Guizhou Konka New Material Technology Co., Ltd. Guizhou Konka New
Material Technology
113
Guizhou Kanggui Energy Co., Ltd. Guizhou Kanggui Energy
114
Guangdong Xinwei Semiconductor Co., Ltd. Guangdong Xinwei
115
Chongqing Kangxingrui Renewable Resources Co., Ltd. Kangxinrun Renewable
Resources
116
Guizhou Kanggui Material Technology Co., Ltd. Guizhou Kanggui Material
133
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
Technology
117
Sichuan Chengrui Real Estate Co., Ltd. Sichuan Chengrui
118
Chongqing Jiarun Real Estate Co., Ltd. Chongqing Jiarun
119
Nantong Kanghai Technology Industry Development Co., Nantong Kanghai
Ltd.
120
Chongqing Kangyiyun Business Operation Management Chongqing Kangyiyun
Co., Ltd.
121 Jiangxi Konka High-tech Park Operation and Management Jiangxi Konka High-tech
Co., Ltd. Park
122 Shangrao Konka Electronic Technology Innovation Co., Shangrao Konka Electronic
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
125 Zhejiang Konka Technology Industry Development Co., Zhejiang Konka Technology
Ltd. Industry
126 Sichuan Hongxinchen Real Estate Development Co., Ltd. Sichuan Hongxinchen
127 Xi'an Konka Intelligent Appliance Co., Ltd. Xi'an Konka Intelligent
128 Xi'an Konka Network Technology Co., Ltd. Xi'an Konka Network
129 Xi'an Kanghong Technology Industry Development Co., Xi'an Kanghong Technology
Ltd. Industry
130 Xi'an Konka Intelligent
Xi'an Konka Intelligent Technology Development Co., Ltd.
Technology
131 Chongqing Fangbing Real
Chongqing Fangbing Real Estate Co., Ltd.
Estate
132 Chongqing Konka Low
Chongqing Konka Low Carbon Technology Co., Ltd.
Carbon
133 Shenzhen Kanghong Xintong Investment Partnership
Kanghong Xintong
(Limited Partnership)
134 Songyang Konka Smart Industry Operation Management
Songyang Industry Operation
Co., Ltd.
135 Shenzhen Kangyan Technology Co., Ltd. Kangyan Technology
136 Konka Photovoltaic
Konka Photovoltaic Technology Co., Ltd.
Technology
137 Songyang Konka Intelligent Technology Development Co.,
Songyang Konka Intelligent
Ltd.
138 Konka North China (Tianjin) Technology Co., Ltd. Konka North China
139 Zhongshan Kanghong Electronic Technology Co., Ltd. Zhongshan Kanghong
140 Shenzhen Konka Digital Technology Development Co., Digital Technology
134
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
No. Corporate name Abbreviation
Ltd.
III. Basis for the Preparation of Financial Statements
1. Basic for the preparation
With the going-concern assumption as the basis and based on transactions and other events that
actually occurred, the Group prepared financial statements in accordance with the Accounting
Standards for Business Enterprises issued by the Ministry of Finance and other regulations as
well as the accounting policies and estimations stipulated in the Note IV “Significant Accounting
Policies and Estimations”.
2. Going-concern
The Group has a recent history of profitable operations supported by financial resources and considers
it reasonable to prepare the financial statements on a going concern basis.
IV. Important Accounting Policies and Estimations
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually and completely present the
Group’s financial positions, business results and cash flows, and other relevant information.
2. Fiscal Period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to
the Gregorian calendar.
3. Operating Cycle
The normal operating cycle refers to the period from the purchase of assets for processing to the
realization of cash or cash equivalents by the Group. An operating cycle for the Group is 12 months,
which is also the classification criterion for the liquidity of its assets and liabilities.
4. Recording Currency
The Group adopted RMB as the bookkeeping base currency.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not
under the Same Control
As the combining party, the assets and liabilities obtained by the Group in a business combination
under the same control shall be measured on the basis of their carrying value in the final
controlling party on the combining date. As for the balance between the carrying value of the net
135
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
assets obtained and the carrying value of the consideration paid by it, the capital reserve shall be
adjusted. If the capital reserve is not sufficient to be offset, the retained earnings shall be adjusted.
The identifiable assets, liabilities and contingent liabilities of the acquiree acquired in the
business combination under different control shall be measured at fair value on the acquisition
date. The merger cost is the sum of the fair value of cash or non-cash assets, liabilities issued or
assumed, equity securities issued, etc. paid by the Group on the purchase date to gain control over
the purchased party and all directly related expenses incurred in the business combination (The
merge cost of business combination realized step by step through multiple transactions is the sum
of every single transaction’s cost). The balance that the combined cost greater than the fair value
share of the identifiable net assets of the purchased party obtained in the combination shall be
recognized as goodwill; When the merger cost is less than the fair value share of the identifiable
net assets of the acquiree acquired in the merger, the fair value of all identifiable assets, liabilities
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
136
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
the same control is acquired step by step through multiple transactions, and finally form the
business combination, when preparing the consolidated statement, it shall be deemed as the
adjustment is made in the current state when the final controlling party starts to control. And
when compiling the comparative report, the assets and liabilities of the merged party shall be
merged into the comparative statement of the consolidated financial statements of the
consolidated Group without any earlier than the time when the Group and the merged party are
under the control of the ultimate controlling party, and the combined net increased assets shall be
adjusted to the relevant items under owners' equity in the comparative statements. In order to
avoid the re-calculation of the net assets value of the merged party, the long-term equity
investment held by the Group before the merger, the confirmed relevant profit and loss on the
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
137
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
of purchase or the date of consolidation is corresponding to the disposal of long-term equity
investments. The capital premium or equity premium is adjusted. If the capital reserve is
insufficient to offset, the retained earnings are adjusted.
If the Group loses control over the investee due to the disposal of some equity investments and
other reasons, the remaining equity shall be re-measured at its fair value on the date of loss of
control when preparing the consolidated financial statements. The difference between the sum of
the consideration obtained from the disposal of equity and the fair value of the remaining equity,
minus the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger, is included in
the investment profit and loss of the current period when the control right is lost, and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment, etc.,
will be transferred to the current investment profit and loss when the control right is lost.
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
138
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(1) Foreign currency transaction
As for foreign currency transaction, the Group converted the foreign currency amount into RMB
amount at the exchange rate at the beginning of the month of transaction occurrence date
(normally referred to as the central parity rate of foreign exchange rate on the same day published
by the People’s Bank of China, the same below). On the balance sheet date, the monetary items in
foreign currency were converted into RMB at the spot exchange rate on balance sheet date.
Except the exchange difference arising from special foreign-currency borrowing for the purpose
of construction or production of assets meeting capitalization conditions treated in the principle of
capitalization, the conversion difference was directly included in the current profits and losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot
exchange rate on balance sheet date; except for “undistributed profit”, owner’s equity items were
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
139
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
interest rate and their amortization, impairment and exchange gain and loss as well as gains or
losses arising from derecognition shall be recorded into the current profit or loss.
The Group classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: ①The Business mode for
managing financial assets of the Group takes contract cash flow collected as target and selling as
target. ②The contract of the financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. These
financial assets initially measured at fair value and relevant transaction cost shall be included into
the initial recognized amount. Except for those designated as hedged items, as for these financial
assets, except for gains or losses on credit impairment, exchange gain and loss and interest of
financial assets measured at actual interest rate, other gains or losses generated shall be recorded
into other comprehensive income. When derecognized, the accumulated gains and losses
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
140
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
financial assets shall be recorded into the current profit or loss.
The contingent consideration recognized by the Group in the business combination not under the
same control which constitutes a financial asset shall be classified as the financial asset at fair
value through profit or loss.
2) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
① the rights to receive cash flows from the asset have expired; ② the enterprise has transferred
its rights to receive cash flows from the asset to a third party under a pass-through arrangement;
or ③ the enterprise has transferred its rights to receive cash flows from the asset and either (a)
has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
If the overall transfer of financial assets fulfills the requirements for derecognition, the difference
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
141
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
rate. The Group classifies financial liabilities except for the following items as financial liabilities
at amortized cost: ①Financial liabilities at fair value through profit or loss including held-for-
trading financial liabilities (including the derivative instruments belonging to financial liabilities)
and designated financial liabilities at fair value through profit or loss. ②Financial liabilities
arising from the transfer of financial assets not meeting the derecognition conditions or
continuous involvement in the transferred financial assets. ③Financial guarantee contract not
belonging to cases of above ① or ② and loan commitments at interest rate lower than the market
rate not belonging to the case in ①.
The Group treats the financial liability arising from contingent consideration recognized as the
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.
2) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being
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
142
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 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
143
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 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.
144
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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.
(3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk, the Group shall separately evaluate
its credit risk, including the receivables from related parties, receivables involved in any dispute
with the other party or any lawsuit and arbitration, and receivables with obvious evidence
showing that the debtor cannot fulfill the due payment obligation etc.
Except for the financial assets whose credit risk shall be separately evaluated, the Group shall
divide these financial assets into different combinations based on the specific risk features, on
which basis, corresponding credit risks can be evaluated.
(4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period, the Group shall calculate the expected credit losses of various financial
assets. If the expected credit loss is higher than the carrying amount of its current impairment
provision, the difference shall be recognized as the impairment loss; if lower, the difference shall
be recognized as the gain from the impairment.
12. Notes Receivable
For notes receivable, the Group shall measure the provision for loss based on the specific
expected credit loss during the entire period of existence. According to the credit risk
characteristics thereof, except those with separate evaluation of credit risk, notes receivable can
be divided into different combinations:
Item Basis
The Accepter shall be the bank with high credit level and low
Bank Acceptance
risks
145
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Basis
Classified by credit risk of acceptors (the same as accounts
Trade Acceptance
receivable)
13. Accounts Receivable
For account receivable and contract assets excluding significant financing composition, the Group
shall measure the provision for loss according to the specific expected credit loss amount within
the entire period of existence.
For account receivable, contract assets and lease payment receivable including significant
financing composition, the Group shall always measure the provision for loss according to the
specific expected credit loss amount within the period of existence.
Except the account receivable and contract assets whose credit risks shall be separately evaluated,
the Group shall divide them into different combinations based on the specific credit risks:
Item Basis
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.
Related party combination The accounts receivable from the other entities within the Group
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
Aging Combination This portfolio is other receivables with aging as the credit risk
146
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Basis
feature.
This combination shall regard other receivables of extremely low
Low Risk Combination risk (including the revolving fund, the cash deposit and the guarantee
deposit) as the credit risk feature.
Related party
Other receivables from the other entities within the Group
combination
16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases remarkably
after the initial recognition, the Group shall measure the impairment loss based on the specific
expected credit loss in the following 12 months or during the entire period of existence. Except
long-term account receivables whose credit risks shall be separately evaluated, the Group shall
divide them into different combinations based on the specific credit risk features:
Item Basis
Financing Lease Regarding the long-term receivables related to the financing lease as the
Combination credit risk characteristics
17. Inventories
The Group's inventories mainly include raw materials, products in process, semi-finished
products, Products on hand,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
147
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
sale price of inventories. The net realizable value of inventories shall be fixed on the basis of
valid evidence as well as under consideration of purpose of inventories and the effect of events
after balance-sheet-date.
After withdrawing the depreciation reserves for inventories, if the factors, which cause any write-
down of the inventories, have disappeared, causing the net realizable value of inventories is
higher than its carrying amount; the amount of write-down shall be reversed from the original
amount of depreciation reserve for inventories. The reversed amount shall be included in the
profits and losses of the current period.
18. Contract Assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Group to receive consideration after transferring goods to
customers, and this right depends on factors other than the passage of time. If the Group sells two
clearly distinguishable products to customers, it has the right to receive payment because one of
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
For the method of determining the expected credit loss of contract assets, see the above-
mentioned measurement method for impairment losses of receivables.
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
148
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
and a current or expected contract Directly related, including direct labor, direct materials,
manufacturing expenses, clearly the cost borne by the customer, and other costs incurred only due
to the contract; this cost increases the Group's future resources for fulfilling its performance
obligations; This cost is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the Group to obtain the
contract is expected to be recovered, and is recognized as an asset as the contract acquisition cost;
if the asset amortization period does not exceed one year, it is included in the current profit and
loss when it occurs. Incremental cost refers to the cost (such as sales commission, etc.) that the
Group will not incur without obtaining the contract. The Group's expenses incurred in obtaining
the contract, other than the expected incremental cost that can be recovered (such as travel
expenses incurred regardless of whether the contract is obtained, etc.), are included in the current
profit and loss when they are incurred, but it is clearly borne by the customer except.
(2) Amortization of assets related to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the commodity
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
149
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
judge whether the Group has a significant influence on the investee by taking into account the
facts and circumstances such as having representatives on the board of directors or similar
authority of the investee, or participating in the process of formulating financial and operating
policies of the investee, or having major transactions with the investee, or sending management
personnel to the investee, or providing key technical information to the investee.
If control over the investee is formed, it is a subsidiary of the Group. For long-term equity
investment acquired through business combination under the same control, the initial investment
cost of the long-term equity investments is recorded at the merger date based on the acquisition of
the merged party's share of the book value of the net assets of the ultimate controller in the
consolidated financial statement. If the book value of the net assets of the merged party on the
merger date is negative, the cost of long-term equity investments is determined as zero.
If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the treatment
of long-term equity investments in the parent Group's financial statements shall be made in the
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
150
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
shall not be adjusted. The same basis of accounting as that used for the direct disposal of the
related assets or liabilities by the investee is used for the disposal of the investment. If the equity
held prior to the purchase date is a financial asset designated to be measured at fair value with
fluctuations included in other comprehensive income, the cumulative profit or loss on the equity
previously recognized in other comprehensive income shall be transferred from other
comprehensive income to the retained earnings; if the equity is a financial asset measured at fair
value and the changes of which are included in profits and losses of the current period, the equity
previously recognized as profits and losses from the changes in fair value shall not be transferred
to investment income. If the equity held prior to the purchase date is an investment for other
equity instruments, the changes in fair value of the equity investment accumulated in other
comprehensive income before the purchase date shall be transferred to the retained earnings.
Except for the long-term equity investments acquired through business combination hereinabove,
long-term equity investments acquired by paying cash are recorded as investment cost based on
the actual purchase price paid; long-term equity investments acquired by issuing equity securities
are recorded as investment cost based on the fair value of the equity securities issued; long-term
equity investments invested by investors are recorded as investment cost based on the value
agreed in the investment contract or agreement.
The 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
151
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
should be enjoyed.
For the long-term equity investment with equity method for subsequent measurement, the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee,
the net profit and loss of the investee shall be calculated based on the fair value of the identifiable
assets of the investee at the time of obtaining the investment, in accordance with the accounting
policies and accounting period of the Group, and offset the internal transaction profit and loss
between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.
For disposal of long-term equity investment, the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment
accounted by equity method, other comprehensive income accounted by the original equity
method shall be accounted on the same basis as the investee's direct disposal of relevant assets or
liabilities when the equity method is terminated, and the owner's equity shall be recognized due to
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
152
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
residual equity on the day of losing control shall be included in the current profits and losses.
If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction, accounting treatment shall be carried out for each transaction separately. If it
is a "package deal", each transaction will be treated as a transaction of disposal of subsidiaries
and loss of control. However, before the loss of control, the difference between the disposal price
of each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income, and when the control is lost,
it will be transferred to the current account of loss of control Period profit and loss
21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group include the right to use any land which has
already been rented; the right to use any land which is held and prepared for transfer after
appreciation; and the right to use any building which has already been rented. In addition, if the
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
153
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
transferred to investment property at the date of such change. If the fixed asset or intangible asset
is changed into investment property measured by adopting the cost pattern, whose book value
prior to the change shall be the entry value after the change; if the fixed asset or intangible asset is
changed into investment property measured by adopting the fair value pattern, whose fair value
on the date of such change shall be the entry value after the change.
An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The amount of proceeds on sale, transfer, retirement or damage of an investment property less its
carrying amount and related taxes and expenses is recognized in profit or loss in the period in
which it is incurred.
22. Fixed Assets
The Group’s fixed assets are tangible assets held for the production of goods, provision of
services, rental or operation management and have a useful life of more than one year.
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 and Straight-line
20-40 5-10.00 2.25-4.75
1 building depreciation
Machinery Straight-line
5-10 5-10.00 9.00-19.00
2 equipment depreciation
Electronic Straight-line
3-5 5-10.00 18.00-31.67
3 equipment depreciation
Transportation Straight-line
3-5 5-10.00 18.00-31.67
4 vehicle depreciation
Straight-line
Other equipment 5 5-10.00 18.00-19.00
5 depreciation
The estimated useful life, estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.
154
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
23. Construction in Progress
On the date when the construction in progress reaches its intended useable state, fixed assets are
carried forward at the estimated value based on the project budget, cost or actual cost of the
project, etc. Depreciation starts from the following month, and the difference in the original value
of fixed assets is adjusted after the completion of the final accounting procedures.
24. Borrowing Costs
For incurred borrowing costs, which can be directly attributed to fixed assets, investment real
estate and inventory that need more than one year of purchasing, construction or production
activities to reach the preset usable or sellable status, shall be capitalized when the asset
expenditure has occurred, the borrowing costs have occurred, and the purchasing, construction or
production activities necessary for the asset to reach the preset usable or sellable status have
begun; When the acquisition, construction or production of assets that meet the capitalization
conditions reach the intended usable or sellable status, capitalization is stopped, and the
borrowing costs incurred thereafter are included in the profits and losses of the current period. If
there is an abnormal interruption in the acquisition, construction or production of assets that meet
the capitalization conditions and the interruption lasts for more than 3 consecutive months, the
capitalization of borrowing costs will be suspended until the acquisition, construction or
production of assets starts again.
The to-be-capitalized amount of interests shall be determined in light of the actual interests
incurred of the specially borrowed loan at the present period minus the income of interests earned
on the unused borrowing loans as a deposit in the bank or as a temporary investment; the
enterprise shall calculate and determine the to-be-capitalized amount on the general borrowing by
multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing
used. The capitalization rate shall be calculated and determined in light of the weighted average
interest rate of the general borrowing.
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
155
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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.
(3)Depreciation of right-of-use assets
From the commencement date of the lease term, the Group has accrued depreciation on the right-of-
use assets. Right-of-use assets are usually depreciated from the month when the lease term begins. The
accrued depreciation amount is included in the cost of related assets or current profits and losses
according to the use of the right-of-use assets.
When determining the depreciation method of the right-of-use assets, the Group makes a decision
based on the expected consumption mode of the economic benefits related to the right-of-use assets,
and accrues depreciation for the right-of-use assets on the straight-line method.
When determining the depreciation period of the right-of-use assets, the Group follows the following
principles: If the ownership of the leased assets can be reasonably determined when the lease term
expires, depreciation shall be accrued within the remaining service life of the leased assets; if it cannot
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.
(4)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
156
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
assets with finite useful lives are reviewed at the end of each year. Accounting estimation
methods are used when changes are required.
(1) Specific criteria for dividing the research phase and development phase
“Research” means an original and planned investigation to acquire and understand new scientific
or technical knowledge.
“Development” means the application of research results or other knowledge to one or more plans
or designs to produce new or substantially improved materials, devices, products, or to obtain
new processes, etc., prior to commercial production or use.
Expenses for the research phase are charged to current profit or loss as incurred.
(2) Specific criteria for capitalization of development stage expenditures
Expenditures in the development stage are capitalized when the following conditions are met.
① It is feasible technically to finish intangible assets for use or sale;
② It is intended to finish and use or sell the intangible assets;
③ The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally;
④ It is able to finish the development of the intangible assets, and able to use or sell the
intangible assets, with the support of sufficient technologies, financial resources and other
resources;
⑤ The development expenditures of the intangible assets can be reliably measured.
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
157
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
rate according to Assets in service and predicted cash flow of final disposal. Asset depreciation
reserves should be calculated on the basis of single Assets. If it is difficult to predict the
recoverable amounts for single Assets, recoverable amounts should be determined according to
the belonging asset group. Asset group is the minimum asset combination producing cash flow
independently.
In impairment test, carrying value of the business reputation in financial report should be shared
to beneficial asset group and asset group combination in collaboration of business merger. It is
shown in the test that if recoverable amounts of shared business reputation asset group or asset
group combination are lower than book value, it should determine the impairment loss.
Impairment loss amount should firstly be deducted and shared to the carrying value of business
reputation of asset group or asset group combination, then deduct carrying value of all assets
according to proportions of other carrying value of above assets in asset group or asset group
combination except business reputation.
After the asset impairment loss is determined, recoverable value amounts would not be returned
in future.
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
158
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
recognised as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.
The post-employment benefits mainly include the basic endowment insurance, etc. They are
divided into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Group. According to the defined contribution plan, the deposit paid
to a separate entity in exchange for the services provided by the employees during the accounting
period on the balance sheet date is recognized as liabilities, and shall be included in the current
profit and loss or the cost of related assets according to the beneficiary. If the Group has a defined
benefit plan, the specific accounting method should be explained.
When terminating labour relations before expiration of contract, or layoffs with compensations,
and the Group cannot terminate the labour relations unilaterally or reduce the demission welfare,
remuneration and liabilities produced from the demission welfare should be determined and
included in current profits and losses when determining the costs of demission welfare and
recombination. However, demission welfare not fully paid within 12 months after annual
Reporting Period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above
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
159
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 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
160
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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
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.
161
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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
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,
162
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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
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
163
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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.
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
164
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
quota standard, or funds that meet the relevant conditions stipulated by the financial support
policy with conclusive evidence at the end of the year and which are expected as the financial
support. Non-monetary elements of the government grants shall be measured at fair value. Those
whose fair value cannot be obtained reliably shall be measured at its nominal amount (RMB1).
Asset-based grants shall be used to offset the carrying value of related assets or presented as
deferred income, and shall, over the life of the related asset, be included in the current profits and
losses by the equal amortization method.
If the related asset is sold, transferred, scrapped, or damaged before the end of its useful life, its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.
Income-based grants that are used to compensate related costs or losses in subsequent periods
shall be deemed as deferred income and shall be included in the current profits and losses during
the period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.
Government grants not related to routine activities shall be included in non-operating income and
expenditure.
The 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
165
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 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
166
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 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
167
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 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
168
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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
On 30 December 2021, the Ministry of Finance ("MOF") issued Accounting Standard for
Business Enterprises ("ASBE") Interpretation No. 15 (Caikuai [2021] No. 35) ("ASBE
Interpretation No. 15").
① The Group implemented the provisions of ASBE Interpretation No. 15 "Accounting for the
sale of products or by-products produced by an enterprise before a fixed asset reaches its intended
useable state or in the course of research and development" issued by the Ministry of Finance
with effect from 1 January 2022, and the change in accounting policy has no impact on the
Company's financial statements.
② The Group has implemented the provisions of ASBE Interpretation No. 15 "Judgment on
Loss-making Contracts" since 1 January 2022, and the change in accounting policy has no impact
on the Company's financial statements.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.
V. Taxation
1. Main Taxes and Tax Rate
Specific situation of the taxes
Category of taxes Basis
rate
169
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Specific situation of the taxes
Category of taxes Basis
rate
Calculated the output tax at
the tax rate and paid the
VAT by the amount after
deducting the deductible
withholding VAT at 1%、 3%、 5%、 6%、 9%、
VAT 13%
current period, of which
the VAT applicable to easy
collection won’t belong to
the deductible withholding
VAT.
Paid at 5%: Dongguan Konka,
XingDa HongYe, Xinfeng
Microcrystalline, Boluo Konka
Precision, Boluo Konka,
Ningbo Kanghanrui, Jiangsu
Konka Smart, Yibin Kangrun,
Urban maintenance and The circulating tax actually Yibin Kangrun Medical, Yibin
construction tax paid Kangrun Environmental
Protection, Jiangkang
(Shanghai) Technology. Paid
at 3.5%: Konka Capital. Paid
at 1%: Jiangxi Konka, Jiangxi
High Transparent Substrate.
Paid at 7%: other subsidiaries.
The circulating tax actually
Education surtax 3%
paid
The circulating tax actually
Local education surtax 2%
paid
25%/ See 2.Tax Preference
Enterprise income tax Taxable income and Approved Documents for
details
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Xiaojia Technology, Electronic Technology,
Anhui Konka, Anhui Tongchuang, Xinfeng
Microcrystalline, Xingda Hongye, Jiangxi Konka, 15%
Jiangxi High Transparent Substrate, Wankaida,
Chengdu Konka Electronic
170
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Name of entity Income tax rate
Hong Kong Konka, Konka Electrical Appliances
International Trading, Jiali International,
Kangjietong, Jiaxin Technology, Jiaxin
16.5%
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 19 December 2022, Xiaojia Technology, a subsidiary of the Company, received the
"Certificate of High-tech Enterprise" jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202244203274, which is valid for
three years. According to the relevant tax regulations, Xiaojia Technology will enjoy the relevant
preferential tax policies regarding high-tech enterprises for three consecutive years from 2022 to
2024, and pay enterprise income tax at a preferential tax rate of 15%.
171
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(3) On 19 December 2022, Electronic Technology, a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202244205867, which is valid for
three years. In accordance with the relevant tax regulations, Electronic Technology is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(4) On 18 October 2022, Anhui Konka, a subsidiary of the Company, obtained the Certificate of
High-Tech Enterprise jointly issued by the Department of Science and Technology of Anhui
Province, the Department of Finance of Anhui Province and the Taxation Bureau of Anhui
Province of the State Administration of Taxation, with the certificate number GR202234002272,
which is valid for three years. In accordance with the relevant tax regulations, Anhui Konka is
entitled to the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
preferential tax rate of 15%.
(5) On 18 October 2022, Anhui Tongchuang, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Anhui Province, the Department of Finance of Anhui Province and the Taxation Bureau of
Anhui Province of the State Administration of Taxation, with the certificate number
GR202234000798, which is valid for three years. In accordance with the relevant tax regulations,
Anhui Tongchuang is entitled to the relevant tax incentives for three consecutive years from 2022
to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay enterprise
income tax at a preferential tax rate of 15%.
(6) On 4 November 2022, Xinfeng Microcrystalline, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Jiangxi Province, the Department of Finance of Jiangxi Province and the Taxation Bureau of
Jiangxi Province of the State Administration of Taxation, with the certificate number
GR202236000999, which is valid for three years. In accordance with the relevant tax regulations,
Xinfeng Microcrystalline shall enjoy the relevant tax incentives for three consecutive years from
2022 to 2024. According to the relevant tax regulations, Xinfeng Microcrystalline is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
172
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(7) 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%.
(8) 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%.
(9) 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
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%.
(10) 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%.
(11) 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
60% 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.
173
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(12) 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, Electronics
Technology and Anhui Tongchuang all enjoy this preferential policy.
VI. Notes to Major Items in the Consolidated Financial Statements of the
Company
Regarding the following disclosures in relation to the financial statements, unless otherwise
specified, the period-begin refers to 1 January 2022, the period-end refers to 31 December 2022,
this period refers to the period from 1 January 2022 to 31 December 2022 and the last year refers
to the period from 1 January 2021 to 31 December 2021. The monetary unit is RMB.
1. Monetary Assets
Item Ending balance Beginning balance
Cash on hand 14.78 363.22
Bank deposits 5,473,400,175.52 5,968,346,855.81
Other monetary assets 514,695,300.41 521,205,992.21
Total 5,988,095,490.71 6,489,553,211.24
Of which: total amount deposited
137,008,617.40 167,359,880.91
overseas
Note: The ending balance of other monetary funds mainly includes margin deposits, financial
supervision account funds, WeChat, Alipay and other platform accounts and other deposits
subject to use restrictions. For details, see "Note VI, 65, Assets with Restricted Ownership or Use
Rights".
2. Notes Receivable
(1) Notes Receivable Listed by Category
Item Ending balance Opening balance
Bank’s acceptance bill 709,558,838.75 1,215,753,215.01
Commercial acceptance bill 350,178,404.79 561,724,266.27
Total 1,059,737,243.54 1,777,477,481.28
(2) Notes Receivable Pledged by the Company at the Period-end
Item Amount
Bank’s acceptance bill 504,958,051.41
174
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Amount
Commercial acceptance bill
Total 504,958,051.41
(3) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due
on the Balance Sheet Date at the Period-end
Item Amount of recognition Amount of not terminated
termination at the period- recognition at the period-
end end
Bank’s acceptance bill 1,062,929,117.11
Commercial acceptance bill 35,251,562.48
Total 1,062,929,117.11 35,251,562.48
(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
Withdr
Category
Proport awal Carrying value
Amount Amount
ion (%) proport
ion (%)
Provision for
bad debts
provided
individually
Bad debt
provision made 1,067,029,648.07 100.00 7,292,404.53 0.68 1,059,737,243.54
as per portfolio
Of which: Bank
709,558,838.75 66.50 709,558,838.75
acceptance bill
Commercia
357,470,809.32 33.50 7,292,404.53 2.04 350,178,404.79
l acceptance bill
Total 1,067,029,648.07 100.00 7,292,404.53 0.68 1,059,737,243.54
(Continued)
175
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Beginning balance
Carrying amount Bad debt provision
Withdr
Category
Proport awal Carrying value
Amount Amount
ion (%) proport
ion (%)
Provision for bad
debts provided
individually
Bad debt
provision made 1,789,175,291.65 100.00 11,697,810.37 0.65 1,777,477,481.28
as per portfolio
Of which: Bank
1,215,753,215.01 67.95 1,215,753,215.01
acceptance bill
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
In the group, the provision for expected credit loss on commercial acceptance bills was made
according to aging
Ending balance
Name Withdrawal
Carrying amount Bad debt provision
proportion (%)
357,470,809.32 7,292,404.53 2.04
Within 1 year
Total 357,470,809.32 7,292,404.53 2.04
(6) Bad debt provision for notes receivable withdrawn, collected or reversed during the Reporting
Period
Changed amount
Beginning Withdrawal Collected or Write- Ending
Category Othe
balance reversed off or balance
r
verified
Commercial
acceptance 11,697,810.37 8,112,015.62 12,517,421.46 7,292,404.53
bill
Bank’s
176
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Changed amount
Beginning Withdrawal Collected or Write- Ending
Category Othe
balance reversed off or balance
r
verified
acceptance
bill
Total 11,697,810.37 8,112,015.62 12,517,421.46 7,292,404.53
(7) Notes receivable actually written off in the current period
There is no notes receivable actually written off in the current period.
3. Accounts Receivable
(1) Accounts Receivable Listed by Withdrawal Methods for Bad Debts
Ending balance
Carrying amount Bad debt provision
Withd
Category Propor rawal Carrying value
Amount tion Amount propo
(%) rtion
(%)
Accounts
receivable, for
which the
independent 1,487,466,561.80 40.11 1,350,460,284.27 90.79 137,006,277.53
provision for
expected credit
losses
Accounts
receivable, for
which the
provision for
expected credit
losses was
withdrawn
according to
groups
Of which: aging
2,221,448,326.94 59.89 321,719,768.25 14.48 1,899,728,558.69
group
Subtotal of
2,221,448,326.94 59.89 321,719,768.25 14.48 1,899,728,558.69
groups
Total 3,708,914,888.74 100.00 1,672,180,052.52 45.09 2,036,734,836.22
177
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(Continued)
Beginning balance
Carrying amount Bad debt provision
With
Category draw
Propor Carrying value
al
Amount tion Amount
propo
(%)
rtion
(%)
Accounts
receivable, for
which the
independent 1,608,537,820.30 33.82 1,061,967,130.77 66.02 546,570,689.53
provision for
expected
credit losses
Accounts
receivable, for
which the
provision for
expected
credit losses
was
withdrawn
according to
groups
Of which:
3,148,039,065.69 66.18 296,880,274.15 9.43 2,851,158,791.54
aging group
Subtotal of
3,148,039,065.69 66.18 296,880,274.15 9.43 2,851,158,791.54
groups
Total 4,756,576,885.99 100.00 1,358,847,404.92 28.57 3,397,729,481.07
1) Accounts receivable, for which, the independent provision for expected credit loss is made at
the period-end
Ending balance
Withdra
Name Bad debt wal
Carrying amount Withdrawal reason
provision proporti
on (%)
Shanghai Huaxin Expected to be
International Group 299,136,676.70 293,153,943.17 98.00
Co., Ltd. difficult to recover
178
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Withdra
Name Bad debt wal
Carrying amount Withdrawal reason
provision proporti
on (%)
Hongtu Sanbao
High-tech Agreement
200,000,000.00 160,000,000.00 80.00
Technology Co., reorganization
Ltd.
Shenzhen Yaode
Expected to be
Technology Co., 143,135,135.62 121,664,865.28 85.00
difficult to recover
Ltd.
Guangan Ouqishi
Electronic Expected to be
113,230,553.53 110,965,942.46 98.00
Technology Co., difficult to recover
Ltd.
Guangxi BG New Expected to be
83,396,556.37 81,728,625.24 98.00
Materials Co., Ltd. difficult to recover
Zhongfu Tiangong
Expected to be
Construction Group 71,589,096.65 53,691,822.49 75.00
difficult to recover
Co., Ltd.
Gome
Customization
59,569,295.02 35,741,577.01 60.00 Higher credit risk
(Tianjin) Home
Appliances Co., Ltd.
No. 1 Engineering
Company Ltd. of
Expected to be
CCCC First Harbor 65,221,300.00 65,221,300.00 100.00
difficult to recover
Engineering
Company Ltd.
Xingda Hongye Expected to be
51,902,301.95 51,902,301.95 100.00
(Hk) Limited difficult to recover
China Energy Power Expected to be
50,000,000.00 50,000,000.00 100.00
Fuel Co., Ltd. difficult to recover
Expected to be
Others 350,285,645.96 326,389,906.67 93.18
difficult to recover
Total 1,487,466,561.80 1,350,460,284.27
2) Accounts receivable, for which the provision for expected credit losses was withdrawn
according to groups
Aging Ending balance
Bad debt Withdrawal
Carrying amount
provision proportion (%)
Within 1 year 1,627,108,997.86 33,193,023.51 2.04
1 to 2 years 160,485,489.75 16,080,646.09 10.02
2-3 years 172,032,450.77 39,034,163.05 22.69
3-4 years 80,892,519.74 52,483,066.78 64.88
179
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Aging Ending balance
Bad debt Withdrawal
Carrying amount
provision proportion (%)
Over 4 years 180,928,868.82 180,928,868.82 100.00
Total 2,221,448,326.94 321,719,768.25 14.48
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 1,708,338,208.62
1 to 2 years 163,165,760.88
2 to 3 years 267,210,849.90
3 to 4 years 671,539,902.08
Over 4 years 898,660,167.26
Subtotal 3,708,914,888.74
Less: bad debt provision 1,672,180,052.52
Total 2,036,734,836.22
(3) Bad debt provision for accounts receivable during the Reporting Period
Changed amount
Category Beginning balance Collected or
Withdrawal
reversed
Bad debt provision of 1,358,847,404.92 454,228,913.77 17,074,349.72
accounts receivable
Total 1,358,847,404.92 454,228,913.77 17,074,349.72
(Continued)
Changed amount
Category Decrease for other Ending balance
Write-off or verified
reasons
Bad debt provision of 134,980,802.82 -11,158,886.37 1,672,180,052.52
accounts receivable
Total 134,980,802.82 -11,158,886.37 1,672,180,052.52
Note: The debt restructuring of Tianjin Property Group Finance Co., Ltd. resulted in a decrease
of RMB 100,000,000.00. Other reasons for the reduction of RMB 11,219,324.62 due to exchange
rate changes, and RMB 60,438.25 due to the loss of control.
180
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(4) Accounts receivable actually verified during the Reporting Period
Item Amount verified
Actually verified accounts receivable 34,980,802.82
Of which the verification of significant accounts receivable:
Whethe
r
occurre
d
Verification
Verification Reason for because
Name of entity Nature procedures
Amount verification of
performed
related-
party
transact
ions
ASANZO GROUP Payme Approved by
Expected to be
JOINT STOCK nt for 6,572,331.70 the Board of No
unrecoverable
COMPANY goods Directors
A SANZO VIETNAM Payme Approved by
Expected to be
ELECTRONIC JOINT nt for 4,683,514.23 the Board of No
unrecoverable
STOCK COMPANY goods Directors
Xi'an Huajin Payme Approved by
Expected to be
Technology Trade Co., nt for 4,508,000.00 the Board of No
unrecoverable
Ltd. goods Directors
Payme Approved by
Expected to be
Shantan Innovations nt for 2,951,754.15 the Board of No
unrecoverable
goods Directors
Payme Approved by
ASANZO MEDIA Expected to be
nt for 2,127,153.73 the Board of No
AND ENT unrecoverable
goods Directors
Shenzhen
Payme Approved by
Zhongbailong Expected to be
nt for 2,086,034.00 the Board of No
Industrial Development unrecoverable
goods Directors
Co., Ltd.
Total 22,928,787.81
(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 RMB1,100,214,633.59, accounting for 29.66% of total closing balance of account receivable,
the relevant ending balance of bad debt provision withdrawn was RMB584,194,373.72.
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
There was no accounts receivable derecognized for transfer of financial assets.
181
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(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.
4. Accounts Receivable Financing
Item Ending balance Beginning balance
Notes Receivable 237,187,228.44 71,490,688.54
Total 237,187,228.44 71,490,688.54
5. Prepayments
(1) Age of prepayments
Ending balance Beginning balance
Item Amount Proportion Amount Proportion
(%) (%)
Within 1 year 332,218,631.50 85.20 602,386,221.38 95.41
1 to 2 years 52,945,431.22 13.58 20,098,838.22 3.18
2-3 years 4,191,405.92 1.07 8,614,486.12 1.36
Over 3 years 592,183.75 0.15 301,408.14 0.05
Total 389,947,652.39 100.00 631,400,953.86 100.00
Note: The amount of prepayments aged over one year at the end of the period is RMB
57,729,020.89, accounting for 14.80% of the total balance of prepayments of the Company, and
consists mainly of 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
RMB143,766,927.84, accounting for 36.87% of the total ending balance of prepayments.
6. Other Receivables
Item Ending balance Opening balance
Interests receivable 3,878,580.64 2,573,082.79
Dividends receivable 272,999.43
Other Receivables 1,437,973,265.51 1,834,886,622.85
Total 1,442,124,845.58 1,837,459,705.64
6.1 Interests Receivable
182
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(1) Category of Interests Receivable
Item Ending balance Opening balance
Interest on term deposits 3,878,580.64 2,002,526.91
Factoring interest 570,555.88
Total 3,878,580.64 2,573,082.79
(2) Withdrawal of Bad Debt Provision for Interests Receivable
The Group did not have impaired interests receivable.
6.2 Dividends Receivable
(1) Category of Dividends Receivable
Item (or investee) Ending balance Opening balance
Chongqing Qingjia Electronics Co., 272,999.43
Ltd.
Total 272,999.43
6.3 Other Receivables
(1) Classified by Account Nature
Nature Ending carrying balance Opening carrying balance
Deposit and margin 1,411,807,968.60 1,356,193,440.22
Intercourse funds among minority
shareholders in the business
176,571,471.89 173,487,141.27
consolidation not under the same
control and related parties
Energy-saving subsidies receivable 152,399,342.00 152,399,342.00
Others 1,523,970,760.63 1,489,929,312.88
Total 3,264,749,543.12 3,172,009,236.37
(2) Withdrawal of Bad Debt Provision for Other Receivables
Stage 1 Stage 2 Stage 3
Expected loss in Expected credit
Bad debt Expected credit the duration losses for the
Total
provision loss of the next (credit entire duration
12 months impairment not (with credit
occurred) impairment)
Balance as at 1
17,419,904.57 182,212,040.32 1,137,490,668.63 1,337,122,613.52
January 2022
183
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Stage 1 Stage 2 Stage 3
Expected loss in Expected credit
Bad debt Expected credit the duration losses for the
Total
provision loss of the next (credit entire duration
12 months impairment not (with credit
occurred) impairment)
In the Reporting
Period, carrying
amount of other -8,819,408.46 5,698,496.85 3,120,911.61
receivables on 1
January 2022
——Transferred
-8,819,408.46 8,819,408.46
to the Phase II
——Transferred
-3,120,911.61 3,120,911.61
to the Phase III
——Transferred
back to the Phase
II
——Transferred
back to the Phase
I
Provision made
in the current 197,326,914.52 324,641,320.72 521,968,235.24
period
Amount
transferred back
4,783,363.92 49,010.00 4,832,373.92
in the current
year
Write-off
Verification 2,368,413.91 27,727,482.07 30,095,895.98
Other changes 2,658,242.31 -44,543.56 2,613,698.75
Balance as at 31
6,475,374.50 382,824,494.22 1,437,476,408.89 1,826,776,277.61
December 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.
184
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed 1 year, the loss provision is measured based on the expected credit losses for
the entire duration.
The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred, the loss provision is measured according to the credit losses that
have occurred throughout the duration.
(3) Withdrawing bad debt provision for other receivables according to group
Ending balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
Other
receivables with
significant
individual
amount and
1,461,191,467.51 44.76 1,437,476,408.89 98.38 23,715,058.62
make
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
credit risks
characteristics
Of which:
1,342,397,234.31 41.12 372,315,645.78 27.74 970,081,588.53
Aging group
Low-risk group 461,160,841.30 14.12 16,984,222.94 3.68 444,176,618.36
Subtotal of
1,803,558,075.61 55.24 389,299,868.72 21.59 1,414,258,206.89
groups
185
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
Total 3,264,749,543.12 100.00 1,826,776,277.61 55.95 1,437,973,265.51
(Continued)
Beginning balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
Other
receivables with
significant
individual
amount and
1,458,258,132.07 45.97 1,137,490,668.63 78.00 320,767,463.44
make
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
credit risks
characteristics
Of which:
1,494,744,336.27 47.13 188,949,294.11 12.64 1,305,795,042.16
Aging group
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
186
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Beginning balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
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 531,774,524.39
1 to 2 years 551,601,162.73
2-3 years 688,602,155.02
3-4 years 1,096,771,140.67
4-5 years 201,058,646.10
Over 5 years 194,941,914.21
Subtotal 3,264,749,543.12
Less: bad debt provision 1,826,776,277.61
Total 1,437,973,265.51
(5) Bad Debt Provision for Other Receivables
The amount of bad debt provision withdrawn this year was RMB517,135,861.32, mainly because
the expected credit loss of the advanced deposit and quality reparations receivable for the whole
duration was withdrawn because the supplier of the subsidiary Konka Huanjia was in abnormal
business status and could not make delivery or refund the advanced deposit in the short term.
There was a decrease amounting to RMB122,818.70 due to a loss of controlling right over the
subsidiary, an increase amounting to RMB2,736,517.45 due to exchange rate changes, and d
decrease of RMB30,095,895.98 due to verified writeoffs.
(6) Other Receivables Actually Written off in the Reporting Period
Item Amount written off
Other receivables actually written off 35,665,095.98
(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 RMB1,467,347,627.97, accounting for 44.95% of the total ending balance
187
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
of other receivables. The total ending balance of bad debt provision correspondingly withdrawn
was RMB547,785,002.00.
(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.
7. Inventories
(1) Category of Inventories
Ending balance
Inventory falling
price
Item
Carrying balance reserves/impairment Carrying value
provision of contract
performance costs
Raw materials 1,168,223,234.28 64,695,751.94 1,103,527,482.34
Semi-finished products 145,186,803.18 37,339,815.90 107,846,987.28
Products on hand 3,316,097,782.82 270,664,206.34 3,045,433,576.48
Commissioned products 2,862,799.75 2,862,799.75
Contract performance
254,159.33 254,159.33
costs
Development costs 149,842,751.04 149,842,751.04
Total 4,782,467,530.40 372,699,774.18 4,409,767,756.22
(continued)
Beginning balance
Inventory falling price
Item reserves/impairment
Carrying balance Carrying value
provision of contract
performance costs
Raw materials 1,297,747,452.36 56,921,789.83 1,240,825,662.53
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
188
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Beginning balance
Inventory falling price
Item reserves/impairment
Carrying balance Carrying value
provision of contract
performance costs
Commissioned products 2,574,097.17 2,574,097.17
Contract performance
254,159.33 254,159.33
costs
Development costs
Total 4,414,415,278.41 345,877,469.23 4,068,537,809.18
(2) Inventory falling price reserves and impairment provision of contract performance costs
Increased
Item Beginning balance Withdrawn or
Others
transferred back
Raw materials 56,921,789.83 70,103,713.00
Semi-finished products 36,212,915.54 2,165,316.60
Products on hand 252,742,763.86 84,294,399.03
Commissioned products
Contract performance
costs
Development costs
Total 345,877,469.23 156,563,428.63
(Continued)
Decreased
Item Ending balance
Write-off Other
Raw materials 61,949,071.27 380,679.62 64,695,751.94
Semi-finished products 1,038,416.24 37,339,815.90
Products on hand 65,588,454.19 784,502.36 270,664,206.34
Commissioned products
Contract performance
costs
Development costs
Total 128,575,941.70 1,165,181.98 372,699,774.18
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:
189
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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
8. Current Portion of Non-current Assets
Item Ending balance Beginning balance Nature
Current portion of long-term Finance leasing
14,630,000.00 28,105,523.78
receivable amount
Total 14,630,000.00 28,105,523.78
9. Other Current Assets
Item Ending balance Beginning balance
Principal and interests of
entrusted loans to associated 1,544,592,633.44 1,624,197,904.35
enterprises
Prepayments and deductible
taxes, and refund of tax for 457,991,464.58 649,198,781.95
export receivable
Expenses to be deferred 17,278,894.58
Costs receivable for
14,214,651.96 21,501,882.70
returning goods
Others 4,763,581.27 5,064,822.24
Total 2,038,841,225.83 2,299,963,391.24
10. Long-term Receivables
Ending balance
Item Bad debt
Carrying amount Carrying value
provision
Finance leasing amount
Of which: unrealized financing income
Cash deposits of long-term receivables 15,430,400.00 15,430,400.00
190
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Ending balance
Item Bad debt
Carrying amount Carrying value
provision
Long-term receivables of projects with
franchise rights
Less: Long-term receivables due within one
14,630,000.00 14,630,000.00
year (See Note VI-8 for details.)
Total 800,400.00 800,400.00
（Continued）
Beginning balance
Item Bad debt
Carrying amount Carrying value
provision
Finance leasing amount 10,960,622.92 10,960,622.92
Of which: unrealized financing income 390,068.94 390,068.94
Cash deposits of long-term receivables 35,640,400.00 35,640,400.00
Long-term receivables of projects with
franchise rights
Less: Long-term receivables due within one
28,105,523.78 28,105,523.78
year (See Note VI-8 for details.)
Total 18,495,499.14 18,495,499.14
191
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
11. Long-term Equity Investments
Increase/decrease
Adjustment of
Gains and losses
Investee Opening balance Additional Investment Cost method to other
recognized under the
investment reduced equity method comprehensive
equity method
income
Konka Ventures Development
(Shenzhen) Co., Ltd. (formerly
4,895,096.41 68,062.48
“Konka Ventures Development
(Shenzhen) Co., Ltd.”)
Nanjing Zhihuiguang Information
Technology Research Institute Co., 1,642,793.07 43,797.97
Ltd.
Feidi Technology (Shenzhen) Co.,
10,468,555.83 123,048.04
Ltd. and its subsidiaries
Shenzhen Kangyue Enterprise Co.,
32,504,265.03 -271,849.15
Ltd.
Foshan Pearl River Media Creative
Park Cultural Development Co., 4,179,700.00 -1,345,332.96
Ltd.
Kangkai Technology Service
228,931.64 -19,883.32
(Chengdu) Co., Ltd.
Puchuang Jiakang Technology Co,
1,836,583.36 1,821,901.35
Ltd.
Chongqing Qingjia Electronics Co., 15,034,341.13 437,734.72
192
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Adjustment of
Gains and losses
Investee Opening balance Additional Investment Cost method to other
recognized under the
investment reduced equity method comprehensive
equity method
income
Ltd.
Shenzhen Jielunte Technology Co.,
94,278,354.91 5,470,240.06
Ltd.
Panxu Intelligence Co., Ltd. 52,366,635.10 1,801,410.64 -2,775,874.28
Orient Excellent (Zhuhai) Asset
5,077,777.37 2,405,086.69
Management Co., Ltd.
Dongfang Konka No. 1 (Zhuhai)
Private Equity Investment Fund 467,638,787.38 5,076,700.00 11,190,298.97
(LP)
Tongxiang Wuzhen Kunyu Equity
3,528,077.43 -315.79
Investment Co., Ltd.
Shenzhen RF-LINK Technology
Co., Ltd.
Anhui Kaikai Shijie E-commerce
418,721,305.96
Co., Ltd.
Kunshan Kangsheng Investment
317,101,869.51 -3,617,175.94
Development Co., Ltd.
Chutian Dragon Co., Ltd. 647,490,626.93 141,928,645.31 22,575,475.16
Helongjiang Longkang Zhijia 1,117,531.32 1,157,647.82 40,116.50
193
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Adjustment of
Gains and losses
Investee Opening balance Additional Investment Cost method to other
recognized under the
investment reduced equity method comprehensive
equity method
income
Technology Co., Ltd.
Shaanxi Silu Yunqi Smart
14,113,227.58 -779,528.80
Technology Co., Ltd.
Shenzhen Kanghongxing Smart
Technology Co., Ltd.
Shenzhen Zhongbing Konka
Technology Co., Ltd.
Shenzhen Bosser New Materials
60,453,041.59 61,777,797.03 1,324,755.44
Co., Ltd.
Shenzhen Yaode Technology Co.,
Ltd.
Wuhan Tianyuan Environmental
325,645,840.91 29,420,000.00
Protection Co., Ltd.
Chuzhou Konka Technology
49,658,397.02
Industry Development Co., Ltd.
Chuzhou Kangjin Health Industrial
118,122,798.37 157,735,900.00
Development Co., Ltd.
Nantong Kangjian Technology
116,294,808.94 -8,984,779.08
Industrial Park Operations and
194
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Adjustment of
Gains and losses
Investee Opening balance Additional Investment Cost method to other
recognized under the
investment reduced equity method comprehensive
equity method
income
Management Co., Ltd. (formerly
“Haimen Kangjian Technology
Industrial Park Operations and
Management Co., Ltd.”)
Chuzhou Kangxin Health Industry
185,277,588.25 -1,966,765.00
Development Co., Ltd.
Dongguan Guankang Yuhong
Investment Co., Ltd. (formerly
539,103,920.30 -17,762,197.93
“Dongguan Konka Investment Co.,
Ltd.”)
Shenzhen Morsemi Semiconductor
2,395,748.73 -2,395,748.73
Technology Co., Ltd.
Shandong Econ Technology Co.,
1,024,944,000.00 85,859,095.13
Ltd.
Dongguan Kangjia New Materials
6,920,620.00 31,031.72
Technology Co., Ltd.
Chongqing E2info Technology Co.,
Ltd. (formerly “Shenzhen E2info 1,018,795,584.41 23,227,717.58 27,683,195.76
Network Technology Co., Ltd.”)
195
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Adjustment of
Gains and losses
Investee Opening balance Additional Investment Cost method to other
recognized under the
investment reduced equity method comprehensive
equity method
income
Yantai Kangyun Industrial
76,721,264.91 -4,400,788.07
Development Co., Ltd.
E3 (Hainan) Technology Co., Ltd. 58,715,678.97 -7,423.93
Shenzhen Konka Jiapin Intelligent
3,921,788.17 1,449,576.70
Electrical Apparatus Co., Ltd.
Shenzhen Konda E-display Co., Ltd. 82,930,520.62 174,430.51
Chongqing Yuanlv Benpao Real
33,459,820.85 261,753.11
Estate Co., Ltd.
Shenzhen Kangpeng Digital
5,702,518.20 -2,291,365.10
Technology Co., Ltd.
Yantai Kangtang Construction
17,740.49 214,857.15
Development Co., Ltd.
Dongguan Kangzhihui Electronics
23,528,224.46 470,400.00
Co., Ltd.
Sichuan Huayi Jiakang Technology
339,893.32 -218,489.42
Co., Ltd.
Sichuan Aimijiakang Technology
2,000,138.36 -414,377.27
Co., Ltd.
Beijing Konka Jingyuan Technology 766,290.97 -32,458.13
196
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Adjustment of
Gains and losses
Investee Opening balance Additional Investment Cost method to other
recognized under the
investment reduced equity method comprehensive
equity method
income
Co., Ltd.
Chongqing Liangshan Enterprise
53,673.48 68,128.85
Management Co., Ltd.
Shenzhen Kangene Technology
907,025.65 60,298.27
Innovation Development Co., Ltd.
Shandong Kangfei Intelligent
1,478,689.46 -104,708.20
Electrical Appliances Co., Ltd.
Henan Kangfei Intelligent Electrical
1,832,647.54 -649,684.08
Appliances Co., Ltd.
Runxin Microelectronic (Dalian)
Co, Ltd. (formerly “Dalian Xinguan 47,509,494.92 47,509,494.92
Technology Co., Ltd.”)
Guangdong Kangyuan
9,214,309.08 6,680,000.00 -3,117,226.80
Semiconductor Co., Ltd.
Chongqing Kangyiqing Technology
795,085.13 215,598.78
Co., Ltd.
Shenzhen Kangying Semiconductor
11,416,062.86 9,000,000.00 -7,122,613.08 -38,929.34
Technology Co., Ltd.
KK Smartech Limited 1,441,263.59 200,331.86
197
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Adjustment of
Gains and losses
Investee Opening balance Additional Investment Cost method to other
recognized under the
investment reduced equity method comprehensive
equity method
income
Chongqing Kangjian
Optoelectronics Technology Co., 12,000,000.00 -506,967.79
Ltd.
Anhui Kanta Supply Chain
18,060,000.00
Management Co., Ltd.
Wuhan Kangtang Information
26,950,000.00 -295,049.70
Technology Co., Ltd.
Sichuan Chengrui Real Estate Co.,
43,120,000.00 -1,696,485.07
Ltd.
Konka Industrial Development
45,000,000.00 -1,709,307.00
(Wuhan) Co., Ltd.
Heifei KONSEMI Storage
203,999,997.28 -23,853,387.01
Technology Co., Ltd.
Total 5,902,588,939.51 235,502,600.00 275,601,302.66 292,119,997.28 109,846,718.51 -2,814,803.62
（Continued）
Investee Increase/decrease Ending balance Ending balance of
impairment
198
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Cash bonus or
Withdrawal of
Other equity profits
impairment Others
changes announced to
provision
issue
Konka Ventures Development
(Shenzhen) Co., Ltd. (formerly
4,963,158.89
“Konka Ventures Development
(Shenzhen) Co., Ltd.”)
Nanjing Zhihuiguang Information
Technology Research Institute Co., 1,686,591.04
Ltd.
Feidi Technology (Shenzhen) Co.,
10,591,603.87
Ltd. and its subsidiaries
Shenzhen Kangyue Enterprise Co.,
32,232,415.88
Ltd.
Foshan Pearl River Media Creative
Park Cultural Development Co., 2,834,367.04
Ltd.
Kangkai Technology Service
209,048.32
(Chengdu) Co., Ltd.
Puchuang Jiakang Technology Co,
3,658,484.71
Ltd.
Chongqing Qingjia Electronics Co.,
9,640,890.52 5,831,185.33
Ltd.
Shenzhen Jielunte Technology Co., 99,748,594.97
199
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Cash bonus or Ending balance of
Withdrawal of
Investee Other equity profits Ending balance impairment
impairment Others
changes announced to provision
provision
issue
Ltd.
Panxu Intelligence Co., Ltd. 51,392,171.46
Orient Excellent (Zhuhai) Asset
7,482,864.06
Management Co., Ltd.
Dongfang Konka No. 1 (Zhuhai)
Private Equity Investment Fund 483,905,786.35
(LP)
Tongxiang Wuzhen Kunyu Equity
3,527,761.64
Investment Co., Ltd.
Shenzhen RF-LINK Technology
85,656,027.35
Co., Ltd.
Anhui Kaikai Shijie E-commerce
418,721,305.96
Co., Ltd.
Kunshan Kangsheng Investment
313,484,693.57
Development Co., Ltd.
Chutian Dragon Co., Ltd. 4,410,993.60 523,726,463.18
Helongjiang Longkang Zhijia
Technology Co., Ltd.
Shaanxi Silu Yunqi Smart 13,333,698.78
200
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Cash bonus or Ending balance of
Withdrawal of
Investee Other equity profits Ending balance impairment
impairment Others
changes announced to provision
provision
issue
Technology Co., Ltd.
Shenzhen Kanghongxing Smart
12,660,222.73
Technology Co., Ltd.
Shenzhen Zhongbing Konka
Technology Co., Ltd.
Shenzhen Bosser New Materials
Co., Ltd.
Shenzhen Yaode Technology Co.,
214,559,469.35
Ltd.
Wuhan Tianyuan Environmental
2,770,200.00 352,295,640.91
Protection Co., Ltd.
Chuzhou Konka Technology
49,658,397.02
Industry Development Co., Ltd.
Chuzhou Kangjin Health Industrial
275,858,698.37
Development Co., Ltd.
Nantong Kangjian Technology
Industrial Park Operations and
107,310,029.86
Management Co., Ltd. (formerly
“Haimen Kangjian Technology
201
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Cash bonus or Ending balance of
Withdrawal of
Investee Other equity profits Ending balance impairment
impairment Others
changes announced to provision
provision
issue
Industrial Park Operations and
Management Co., Ltd.”)
Chuzhou Kangxin Health Industry
183,310,823.25
Development Co., Ltd.
Dongguan Guankang Yuhong
Investment Co., Ltd. (formerly
521,341,722.37
“Dongguan Konka Investment Co.,
Ltd.”)
Shenzhen Morsemi Semiconductor
Technology Co., Ltd.
Shandong Econ Technology Co.,
135,296,760.09 1,246,099,855.22
Ltd.
Dongguan Kangjia New Materials
6,951,651.72
Technology Co., Ltd.
Chongqing E2info Technology Co.,
Ltd. (formerly “Shenzhen E2info 1,023,251,062.59
Network Technology Co., Ltd.”)
Yantai Kangyun Industrial
72,320,476.84
Development Co., Ltd.
202
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Cash bonus or Ending balance of
Withdrawal of
Investee Other equity profits Ending balance impairment
impairment Others
changes announced to provision
provision
issue
E3 (Hainan) Technology Co., Ltd. 28,000,000.00 30,708,255.04
Shenzhen Konka Jiapin Intelligent
5,371,364.87
Electrical Apparatus Co., Ltd.
Shenzhen Konda E-display Co.,
883,869.41 82,221,081.72
Ltd.
Chongqing Yuanlv Benpao Real
33,721,573.96
Estate Co., Ltd.
Shenzhen Kangpeng Digital
3,411,153.10
Technology Co., Ltd.
Yantai Kangtang Construction
232,597.64
Development Co., Ltd.
Dongguan Kangzhihui Electronics
23,998,624.46
Co., Ltd.
Sichuan Huayi Jiakang Technology
121,403.90
Co., Ltd.
Sichuan Aimijiakang Technology
1,585,761.09
Co., Ltd.
Beijing Konka Jingyuan
733,832.84
Technology Co., Ltd.
203
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Cash bonus or Ending balance of
Withdrawal of
Investee Other equity profits Ending balance impairment
impairment Others
changes announced to provision
provision
issue
Chongqing Liangshan Enterprise
121,802.33
Management Co., Ltd.
Shenzhen Kangene Technology
967,323.92
Innovation Development Co., Ltd.
Shandong Kangfei Intelligent
1,373,981.26
Electrical Appliances Co., Ltd.
Henan Kangfei Intelligent
1,182,963.46
Electrical Appliances Co., Ltd.
Runxin Microelectronic (Dalian)
Co, Ltd. (formerly “Dalian
Xinguan Technology Co., Ltd.”)
Guangdong Kangyuan
12,777,082.28
Semiconductor Co., Ltd.
Chongqing Kangyiqing
1,010,683.91
Technology Co., Ltd.
Shenzhen Kangying Semiconductor
13,254,520.44
Technology Co., Ltd.
KK Smartech Limited 1,641,595.45
Chongqing Kangjian 11,493,032.21
204
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease
Cash bonus or Ending balance of
Withdrawal of
Investee Other equity profits Ending balance impairment
impairment Others
changes announced to provision
provision
issue
Optoelectronics Technology Co.,
Ltd.
Anhui Kanta Supply Chain
18,060,000.00
Management Co., Ltd.
Wuhan Kangtang Information
26,654,950.30
Technology Co., Ltd.
Sichuan Chengrui Real Estate Co.,
41,423,514.93
Ltd.
Konka Industrial Development
43,290,693.00
(Wuhan) Co., Ltd.
Heifei KONSEMI Storage
180,146,610.27
Technology Co., Ltd.
Total 135,296,760.09 45,705,953.53 6,351,232,955.58 312,875,719.43
205
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
12. Investment in Other Equity Instruments
(1) Investment in Other Equity Instruments
Item Ending balance Opening balance
Shenzhen Tianyilian Science & Technology
Co., Ltd.
Shenzhen Adopt Network Co., Ltd.
Beijing Aowei Mutual Entertainment
5,901,121.80 5,901,121.80
Technology Co., Ltd.
Feihong Electronics Co., Ltd.
ZAEFI
Shenzhen Chuangce Investment
Development Co., Ltd.
Shanlian Information Technology
1,860,809.20 1,860,809.20
Engineering Center
Shenzhen CIU Science & Technology Co.,
953,000.00 953,000.00
Ltd.
Shenzhen Digital TV National Engineering
7,726,405.16 7,726,405.16
Laboratory Co., Ltd.
Shanghai National Engineering Research
2,400,000.00 2,400,000.00
Center of Digital TV Co., Ltd.
Bohu UHD 5,000,001.00 5,000,001.00
Total 23,841,337.16 23,841,337.16
206
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(2) Investment in Non-trading Equity Instruments in the Reporting Period
Amount of other Reason for assigning to Reason for other
Dividend
comprehensive measure in fair value of comprehensive
income Accumula Accumulative
Item income which changes included income
recognized tive gains losses
transferred to other comprehensive transferred to
this year
retained earnings income retained earnings
Shenzhen Tianyilian Science & Technology 4,800,000.00 Long-term holding based
Co., Ltd. on strategic purpose
5,750,000.00 Long-term holding based
Shenzhen Adopt Network Co., Ltd.
on strategic purpose
Beijing Aowei Mutual Entertainment 98,878.20 Long-term holding based
Technology Co., Ltd. on strategic purpose
1,300,000.00 Long-term holding based
Feihong Electronics Co., Ltd.
on strategic purpose
100,000.00 Long-term holding based
ZAEFI
on strategic purpose
Shenzhen Chuangce Investment 485,000.00 Long-term holding based
Development Co., Ltd. on strategic purpose
Shanlian Information Technology 3,139,190.80 Long-term holding based
Engineering Center on strategic purpose
Shenzhen CIU Science & Technology Co., 200,000.00 Long-term holding based
Ltd. on strategic purpose
207
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount of other Reason for assigning to Reason for other
Dividend
comprehensive measure in fair value of comprehensive
income Accumula Accumulative
Item income which changes included income
recognized tive gains losses
transferred to other comprehensive transferred to
this year
retained earnings income retained earnings
Shenzhen Digital TV National Engineering Long-term holding based
1,273,594.84
Laboratory Co., Ltd. on strategic purpose
Shanghai National Engineering Research Long-term holding based
Center of Digital TV Co., Ltd. on strategic purpose
Long-term holding based
Bohu UHD
on strategic purpose
Total 17,146,663.84
208
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
13. Other Non-current Financial Assets
Item Ending balance Opening balance
China Asset Management-Jiayi Overseas Designated Plan 200,732,067.00 200,326,093.02
Tianjin Huacheng Property Development Co., Ltd. 1,000,000.00
Tianjin Property No. 8 Enterprise Management Partnership
28,540,777.26
(Limited Partnership)
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 66,080,293.70
Daye Trust Company Limited 100,000,000.00
Yibin OCT Sanjiang Properties Co., Ltd. 171,141,605.35 200,000,000.00
Yili Ecological Restoration Co., Ltd. 41,812,139.03 90,000,000.00
Kunshan Xinjia Emerging Industry Equity Investment Fund
233,834,173.06 88,186,078.16
Partnership (Limited Partnership)
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity
195,312,419.69 118,266,889.53
Investment Partnership (Limited Partnership)
Yibin Kanghui Electronic Information Industry Equity
67,706,235.45 116,086,430.82
Investment Partnership (Limited Partnership)
Chuzhou Jiachen Information Technology Consulting Service
59,700,013.59 52,200,130.13
Partnership (Limited Partnership)
Yancheng Kangyan Information Industry Investment Partnership
167,230,693.52 225,680,330.93
(Limited Partnership)
Chongqing Kangxin Equity Investment Fund Partnership
146,160,043.51 100,882,805.61
(Limited Partnership)
Shenzhen Kanghuijia Technology Co., Ltd. 10,137.30 9,273.31
Subtotal of equity investments 1,479,260,598.46 1,191,638,031.51
Chuzhou Huike Smart Household Appliances Industry 890,768,440.22
626,244,139.25
Investment Partnership (Limited Partnership)
Ningbo Yuanqing No. 9 Investment Partnership 148,855,198.11 134,671,492.89
Shenzhen Beihu Technology Partnership (Limited Partnership) 58,000,000.00 58,000,000.00
Shanxi Kangmengrong Enterprise Management Consulting
9,163,411.30
Partnership (Limited Partnership)
Nanjing Kangfeng Dejia Asset Management Partnership
100,000,000.00
(Limited Partnership)
Shenzhen Gaohong Enterprise Consulting Management
100,000,000.00
Partnership (Limited Partnership)
Shenzhen Zitang No.1 Enterprise Consulting Management
100,386,000.00
Partnership (Limited Partnership)
Xi'an Bihuijia Enterprise Management Consulting Partnership 18,283,639.06
17,752,926.20
(Limited Partnership)
Subtotal of debt investments 1,160,401,674.86 1,101,723,572.17
Total 2,639,662,273.32 2,293,361,603.68
14. Investment Properties
(1) Investment Properties Measured at Cost
209
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Buildings and
Item Land use rights Total
constructions
I. Original carrying
value
1. Beginning
44,863,032.17 826,709,601.47 871,572,633.64
balance
2. Increase in the
1,258,474.75 46,649,427.48 47,907,902.23
period
(1) Outsourcing 8,531,405.75 8,531,405.75
(2) Fixed
assets\Construction in
1,258,474.75 38,118,021.73 39,376,496.48
progress\Transfer of
intangible assets
3. Decrease in the
93,689.25 93,689.25
period
(1) Disposal
(2) Other transfer out 93,689.25 93,689.25
4. Ending balance 46,121,506.92 873,265,339.70 919,386,846.62
II. The accumulative
depreciation and
accumulative
amortization
1. Beginning
7,056,927.57 87,990,644.53 95,047,572.10
balance
2. Increase in the
1,363,248.72 22,594,081.40 23,957,330.12
period
(1) Provision or
1,363,248.72 22,594,081.40 23,957,330.12
amortization
3. Decrease in the
-182,714.09 2,208,614.29 2,025,900.20
period
(1) Disposal
(2) Other transfer out -182,714.09 2,208,614.29 2,025,900.20
4. Ending balance 8,602,890.38 108,376,111.64 116,979,002.02
III. Depreciation
reserves
210
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Buildings and
Item Land use rights Total
constructions
1. Beginning
balance
2. Increase in the
period
(1) Withdrawal
3. Decrease in the
period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Carrying value
1. Ending carrying
37,518,616.54 764,889,228.06 802,407,844.60
value
2. Beginning
37,806,104.60 738,718,956.94 776,525,061.54
carrying value
Note: Increased investment properties during the Reporting Period were mainly plants leased out
by Chongqing Konka Technology Development.
(2) Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
(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 Sunning underway, and the certificate
264,880,028.61
can be handled only after the
settlement
Total 264,880,028.61
(4) Investment properties with restricted ownership or use rights
Item Carrying value Reason
Tower 1 of Konka Guangming
104,066,818.20 As collateral for loan
Technology Center (Phase I)
Total 104,066,818.20
211
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
15. Fixed Assets
Item Ending carrying value Opening carrying value
Fixed Assets 4,114,029,693.38 4,010,295,277.14
Fixed assets pending for disposal
Total 4,114,029,693.38 4,010,295,277.14
212
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(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
331,795,154.98 261,290,200.22 85,966,004.39 4,604,657.28 16,906,614.56 700,562,631.43
the period
(1) Purchase 20,114,341.14 199,041,807.59 26,645,682.05 3,541,333.49 14,633,412.09 263,976,576.36
(2) Transfer from
308,094,448.71 49,402,164.35 4,590,760.45 900,969.30 362,988,342.81
construction in progress
(3) Increase through
consolidation
(4) Other transfer-in 3,586,365.13 12,846,228.28 54,729,561.89 1,063,323.79 1,372,233.17 73,597,712.26
3. Decreased amount of
907,019.01 124,399,475.27 24,011,052.84 4,048,034.10 181,967,467.30 335,333,048.52
the period
(1) Disposal or scrap 141,518.85 103,332,020.04 13,367,221.39 3,616,895.26 13,634,145.19 134,091,800.73
(2) Decrease for loss of 10,822,166.36
10,466,027.51 356,138.85
controlling right
(3) Other decreases 765,500.16 21,067,455.23 177,803.94 74,999.99 168,333,322.11 190,419,081.43
4. Ending balance 2,860,293,710.15 3,103,345,131.12 302,309,738.49 59,879,173.09 186,025,451.11 6,511,853,203.96
II. Accumulative
213
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
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
79,669,943.89 280,456,019.19 60,229,606.14 5,423,262.65 14,564,506.94 440,343,338.81
the period
(1) Withdrawal 72,478,592.92 257,403,610.39 22,903,951.82 5,391,788.42 14,446,611.95 372,624,555.50
(2) Increase through
consolidation
(3) Other increase 7,191,350.97 23,052,408.80 37,325,654.32 31,474.23 117,894.99 67,718,783.31
3. Decreased amount of
273,247.05 104,987,202.08 15,863,349.79 3,186,846.54 110,865,691.68 235,176,337.14
the period
(1) Disposal or scrap 43,597.00 86,527,797.04 12,103,278.56 2,949,525.05 12,258,624.61 113,882,822.26
(2) Decrease for loss of
3,624,872.40 174,804.82 3,799,677.22
controlling right
(3) Other decreases 229,650.05 18,459,405.04 135,198.83 62,516.67 98,607,067.07 117,493,837.66
4. Ending balance 673,384,702.71 1,258,513,887.86 201,688,344.85 42,829,692.30 114,585,141.99 2,291,001,769.71
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
22,739,721.60 47,577,961.34 713,593.51 6,712.58 51,386.68 71,089,375.71
the period
214
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
(1) Withdrawal 22,739,721.60 47,577,961.34 713,593.51 6,712.58 51,386.68 71,089,375.71
3. Decreased amount of
14,754,932.90 6,277.81 14,761,210.71
the period
(1) Disposal or scrap 340,575.20 6,277.81 346,853.01
(2) Other decrease 14,414,357.70 14,414,357.70
4. Ending balance 23,987,527.51 75,533,448.92 1,351,990.45 827,482.72 5,121,291.27 106,821,740.87
IV. Carrying value
1. Ending carrying value 2,162,921,479.93 1,769,297,794.34 99,269,403.19 16,221,998.07 66,319,017.85 4,114,029,693.38
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
215
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(2) List of Temporarily Idle Fixed Assets
Original carrying Accumulated Impairment
Item Carrying value
value depreciation provision
Machinery
865,443,988.96 363,412,125.18 62,022,693.53 440,009,170.25
equipment
Electronic
11,772,427.80 8,531,212.11 77,602.87 3,163,612.82
equipment
Transportat
ion 3,673,189.64 3,317,929.05 355,260.59
equipment
Houses and
266,352,257.20 129,377,121.63 7,899,900.07 129,075,235.50
buildings
Other
2,873,020.82 1,765,894.04 86,175.22 1,020,951.56
machinery
Total 1,150,114,884.42 506,404,282.01 70,086,371.69 573,624,230.72
(3) Fixed Assets Leased out from Operation Lease
Item Ending carrying value
Electronic equipment 231,800.93
Machinery equipment 42,619,267.56
Other machinery 517,453.24
Transportation equipment 8,987.34
Total 43,377,509.07
(4) Details of Fixed Assets Failed to Accomplish Certification of Property
Impa
irme
Original carrying Accumulated Net carrying
Item nt Reason
value depreciation value
provi
sion
Being
Ankang's plants 602,674,461.92 19,526,590.97 583,147,870.95
handled
Bokang's phase
II plants on the Being
33,584,624.73 2,015,077.48 31,569,547.25
second and third handled
floors for printed
216
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Impa
irme
Original carrying Accumulated Net carrying
Item nt Reason
value depreciation value
provi
sion
boards
Jingyuan
Being
Building 7,700,000.00 4,071,361.21 3,628,638.79
handled
property
Yikang
Being
Building 76,610,752.33 40,352,298.33 36,258,454.00
handled
property
Buildings and
constructions of Being
345,413,277.95 1,653,574.20 343,759,703.75
Chongqing handled
Konka
Total 1,065,983,116.93 67,618,902.19 998,364,214.74
(5) Fixed Assets with Restricted Ownership or Use Right
Item Ending carrying value Reason for restriction
Housing and buildings of Anhui
145,172,450.55 Mortgage loan
Tongchuang
Machinery equipment of Jiangxi
27,771,337.15 Finance lease mortgage
Konka
Machinery equipment of Xinfeng
35,461,691.38 Finance lease mortgage
Microcrystalline
Housing and buildings of Frestec
79,903,480.27 Finance lease mortgage
Refrigeration
Buildings of Konka Group 75,596,340.49 Mortgage loan
Housing and buildings of XingDa
37,968,854.48 Mortgage loan
HongYe
Anhui Konka's buildings 614,656,816.06 Mortgage loan
Machinery equipment of Xingda
18,741,233.84 Finance lease mortgage
Hongye
Machinery equipment of Boluo
11,840,840.01 Finance lease mortgage
Konka Precision
Housing and buildings of Jiangxi 2,961,225.95 As collateral for guarantee
217
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Ending carrying value Reason for restriction
Konka when as shareholder
Housing and buildings of Jiangsu
38,126,186.72 Mortgage loan
Konka Intelligent
Housing and buildings of Boluo
5,818,072.30 Mortgaged for billing
Konka Printed Board
Housing and buildings of 343,759,703.75
Mortgage loan
Chongqng Konka
Total 1,437,778,232.95
218
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
16. 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
Chongqing Konka Semiconductor
197,885,487.81 197,885,487.81 319,259,613.46 319,259,613.46
Optoelectronics Park Project
Guangming Project 466,051,847.89 466,051,847.89 282,501,390.70 282,501,390.70
Jiangxi High-permeability
246,576,748.57 20,068,730.37 226,508,018.20 246,576,748.57 246,576,748.57
Crystalization Kiln
Dongguan Konka New Industrial
398,018,288.30 398,018,288.30 163,155,903.72 163,155,903.72
Park
Construction of Suining Electronic
221,981,375.38 221,981,375.38 112,187,404.92 112,187,404.92
Industrial Park Workshops
Frestec Smart Home Appliances
113,146,458.03 113,146,458.03 6,412,249.47 6,412,249.47
Park
Other projects 410,734,273.00 43,964,371.54 366,769,901.46 361,012,106.76 327,586.21 360,684,520.55
Total 2,054,394,478.98 64,033,101.91 1,990,361,377.07 1,491,105,417.60 327,586.21 1,490,777,831.39
(2) Changes of Significant Construction in Progress this period
219
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Decrease in this period
Name of item Opening balance Increase in this period Transferred to long- Ending balance
Other decrease
term assets
Chongqing Konka Semiconductor
319,259,613.46 158,408,963.96 279,783,089.61 197,885,487.81
Optoelectronics Park Project
Guangming Project 282,501,390.70 183,550,457.19 466,051,847.89
Jiangxi High-permeability Crystalization
246,576,748.57 246,576,748.57
Kiln
Dongguan Konka New Industrial Park 163,155,903.72 234,862,384.58 398,018,288.30
Construction of Suining Electronic
112,187,404.92 109,793,970.46 221,981,375.38
Industrial Park Workshops
Frestec Smart Home Appliances Park 6,412,249.47 106,734,208.56 113,146,458.03
Total 1,130,093,310.84 793,349,984.75 279,783,089.61 1,643,660,205.98
（Continued）
Proportion Of which: the Capitalizatio
Estimated Engineeri Accumulated
estimated of the amount of the n rate of the
number ng amount of
Name of item project capitalized interests of Capital resources
(RMB100 Schedule interest
accumulative interests of the the period
million) (%) capitalization
input (%) period (%)
Chongqing Konka Semiconductor 7.57 63.10 63.10 Self-owned fund
220
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Proportion Of which: the Capitalizatio
Estimated Engineeri Accumulated
estimated of the amount of the n rate of the
number ng amount of
Name of item project capitalized interests of Capital resources
(RMB100 Schedule interest
accumulative interests of the the period
million) (%) capitalization
input (%) period (%)
Optoelectronics Park Project
Guangming Project 5.20 89.63 89.63 Self-owned fund and project
22,328,097.51 13,044,187.04 5.30
loans
Jiangxi High-permeability 3.40 72.52 72.52 Self-owned fund and bank
32,249,994.16
Crystalization Kiln financing
Dongguan Konka New Industrial Park 5.97 66.72 66.72 Self-owned fund and bank
15,266,672.03 9,494,147.81 4.76
financing
Construction of Suining Electronic 7.34 57.96 57.96
Self-owned fund
Industrial Park Workshops
4.88 24.54 24.54 Self-owned fund and bank
Frestec Smart Home Appliances Park 82,500.00 82,500.00 4.50
financing
Total 69,927,263.70 22,620,834.85
221
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(3) Impairment Provision for Construction in Progress Withdrawn this Year
Amount withdrawn Reason for
Item
this year withdrawal
Nano Line One Project 36,181,822.63 Conditions for service
unmet
Jiangxi High Permeability Crystallization 20,068,730.37 Conditions for service
Kiln Project unmet
Henan Civil Engineering Project 3,703,547.42 Conditions for service
unmet
Dalian Equipment 3,103,138.94 Conditions for service
unmet
Other projects 648,276.34 Conditions for service
unmet
Total 63,705,515.70
17. 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 amount
30,637,971.86 30,637,971.86
this period
(1) Rent 30,637,971.86 30,637,971.86
(2) Others
3. Decreased
39,155,975.49 67,232.32 832,266.36 40,055,474.17
amount this period
(1) Decrease for loss
887,522.59 887,522.59
of controlling right
(2) Others 38,268,452.90 67,232.32 832,266.36 39,167,951.58
4. Ending balance 105,879,545.84 243,493.34 106,123,039.18
II. Accumulative
depreciation
1. Opening balance 43,734,529.28 31,072.56 564,524.28 44,330,126.12
2. Increased amount
46,437,260.92 61,545.09 267,742.08 46,766,548.09
this period
(1) Withdrawal 46,437,260.92 61,545.09 267,742.08 46,766,548.09
222
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Houses and Electronic Transportation
Item Total
buildings equipment equipment
(2) Others
3. Decreased
34,124,780.47 36,426.88 832,266.36 34,993,473.71
amount this period
(1) Decrease for loss
443,761.31 443,761.31
of controlling right
(2) Others 33,681,019.16 36,426.88 832,266.36 34,549,712.40
4. Ending balance 56,047,009.73 56,190.77 56,103,200.50
III. Impairment
provision
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
49,832,536.11 187,302.57 50,019,838.68
value
2. Opening carrying
70,663,020.19 279,653.10 267,742.08 71,210,415.37
value
Note: Other decreases of original carrying value and accumulative depreciation were mainly
decreases upon the expiry of leases.
223
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
18. Intangible Assets
(1) List of intangible assets
Intellectual property
Right to use
Item Land use right Trademark Patent and Total
Franchise rights software and Subtotal
right know-how
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 59,729,138.06 168,553,796.14 38,312,024.04 206,865,820.18 266,594,958.24
period
(1) Purchase 12,171,519.15 24,393,515.90 24,393,515.90 36,565,035.05
(2) Transfer from
construction in 168,553,796.14 3,968,446.39 172,522,242.53 172,522,242.53
progress
(3) Transfer from
R&D
(4) Increase
through
consolidation
224
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Right to use
Item Land use right Trademark Patent and Total
Franchise rights software and Subtotal
right know-how
others
(5) Other reasons 47,557,618.91 9,950,061.75 9,950,061.75 57,507,680.66
3. Decreased
amount of the 67,276,093.66 3,412,215.08 46,501,452.24 1,031,018.57 50,944,685.89 118,220,779.55
period
(1) Disposal 18,460,000.00 31,501,452.24 565,252.06 32,066,704.30 50,526,704.30
(2) Decrease for
loss of controlling 15,000,000.00 309,734.51 15,309,734.51 15,309,734.51
right
(3) Decrease for
48,816,093.66 3,412,215.08 156,032.00 3,568,247.08 52,384,340.74
other reasons
4. Ending balance 920,331,792.11 72,197,456.33 116,715,865.54 168,553,796.14 166,134,944.42 523,602,062.43 1,443,933,854.54
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 20,247,166.46 4,665,476.67 7,638,886.93 1,560,683.29 21,830,844.06 35,695,890.95 55,943,057.41
amount of the
period
225
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Right to use
Item Land use right Trademark Patent and Total
Franchise rights software and Subtotal
right know-how
others
(1) Withdrawal 20,247,166.46 4,665,476.67 7,638,886.93 1,560,683.29 15,123,269.19 28,988,316.08 49,235,482.54
(2) Other
6,707,574.87 6,707,574.87 6,707,574.87
increases
3. Decreased
amount of the 4,649,685.37 3,412,215.08 44,433,347.53 554,954.22 48,400,516.83 53,050,202.20
period
(1) Disposal 1,476,800.00 31,501,452.24 348,021.76 31,849,474.00 33,326,274.00
(2) Decrease for
loss of controlling 12,931,895.29 58,702.06 12,990,597.35 12,990,597.35
right
(3) Decrease for
3,172,885.37 3,412,215.08 148,230.40 3,560,445.48 6,733,330.85
other reasons
4. Ending balance 99,146,643.20 19,252,110.49 71,318,420.60 1,560,683.29 90,172,768.07 182,303,982.45 281,450,625.65
III. Impairment
provision
1. Opening
41,705,989.33 41,705,989.33 41,705,989.33
balance
2. Increased 564,705.88 3,237,532.29 235,294.12 4,037,532.29 4,037,532.29
226
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Right to use
Item Land use right Trademark Patent and Total
Franchise rights software and Subtotal
right know-how
others
amount of the
period
(1) Withdrawal 564,705.88 3,237,532.29 235,294.12 4,037,532.29 4,037,532.29
(2) Business
Combination
Increase
3. Decreased
amount of the
period
(1) Disposal
(2) Decrease for
loss of controlling
right
4. Ending balance 564,705.88 44,943,521.62 235,294.12 45,743,521.62 45,743,521.62
IV. Carrying value
1. Ending carrying
821,185,148.91 52,380,639.96 453,923.32 166,993,112.85 75,726,882.23 295,554,558.36 1,116,739,707.27
value
2. Opening 844,329,585.60 57,610,822.51 13,398,447.25 59,957,060.72 130,966,330.48 975,295,916.08
227
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Intellectual property
Right to use
Item Land use right Trademark Patent and Total
Franchise rights software and Subtotal
right know-how
others
carrying value
228
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(2) Land Use Right with Certificate of Title Uncompleted
Item Carrying value Reason
Land use right of the subsidiary Nano-
5,016,325.64 Being handled
Grystallization
Total 5,016,325.64
(3) Significant Intangible Assets
Remaining amortization period
Item Ending carrying value
(year)
Land usage right of Dongguan Konka 189,901,786.67 46.67
Land usage right of Frestec Smart Home 92,198,819.50 47.75
Technology
Land usage right of Frestec Refrigeration 65,789,729.84 33.75
Concessions of Yibin Konka 167,459,695.65 17.83
Land use right of Konka Huanjia 63,177,504.14 46.50
(4) Intangible Assets with Restricted Ownership or Using Right
Item Ending carrying value Reason for restriction
Land use right of Dongguan Konka 189,901,786.67 Mortgage loan
Land use right of Anhui Konka 55,073,876.00 Mortgage loan
Land usage right of Frestec Refrigeration 65,789,729.84 As collateral for finance lease
Land usage right of Frestec Smart Home 92,198,819.50 Mortgage loan
Technology
Land use right of Konka Tongchuang 17,944,663.84 Mortgage loan
Land use right of Jiangsu Konka 14,217,813.03 Mortgage loan
Land usage right of XingDa HongYe 13,580,993.18 Mortgage loan
Land usage right of Jiangxi Konka 12,414,476.93 Original shareholder guarantee
mortgage
Land use right of Konka Guangming 5,478,330.62 Mortgage loan
Land use right of Chongqing Konka 45,561,847.85 Mortgage loan
Total 512,162,337.46
19. Development Costs
Item Opening Increase Decrease Ending
balance balance
229
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Rec
ogni
zed
Transferred
Internal as
Othe into the Oth
development inta
rs current profit ers
costs ngib
or loss
le
asse
ts
Performance
improvement
project of 13,635,816.63 712,316.69 14,348,133.32
MINI &
MICRO LED
Self-
development 3,234,494.07 5,541,550.64 8,776,044.71
of chips
Total 16,870,310.70 6,253,867.33 23,124,178.03
20. Goodwill
(1) Original Carrying Value of Goodwill
Increase Decrease
Name of the Opening Formed due
Other Othe Ending balance
investees balance to business Disposal
s rs
combination
Jiangxi
340,111,933.01 340,111,933.01
Konka
XingDa
44,156,682.25 44,156,682.25
HongYe
Total 384,268,615.26 384,268,615.26
(2) Provisions for Goodwill Impairment
Increase Decrease
Name of the Opening
Other Othe Ending balance
investees balance Provision Disposal
s rs
Jiangxi 340,111,933.01 340,111,933.01
230
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase Decrease
Name of the Opening
Other Othe Ending balance
investees balance Provision Disposal
s rs
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 Company engaged an assessment institution to assess the recoverable amount of the asset
groups or combination of asset groups in which goodwill belongs to. Each asset group or
combination of asset groups is the asset group related to goodwill of all operational tangible
assets and recognizable intangible assets (excluding operating capital and non-operating assets) of
principal business as reflected in the balance sheet of the corresponding subsidiary. The
recognition of asset groups at the time of goodwill impairment test shall be consistent with the
asset group or combination of asset groups determined at the time of the goodwill impairment test
on the purchase date and in previous years.
(4) The key assumptions and basis for calculating the recoverable amount of asset groups are as
follows:
① It is assumed that the assessed company is in continuous operation and had no significant
changes from the current situation in the key aspects relating to production and operation,
including business scope, sales mode and channels and the management;
② It is assumed that there are no significant changes in the social and economic environments of
the assessed company, and there are no significant changes from existing ones in relevant laws,
regulations or policies of the country or region where the company is located;
③ It is assumed that the assessed company keeps improving and optimizing its business scope,
business practice and management model on the basis of maintaining consistency, and makes
adjustments and innovations at appropriate times with the development of economy;
④ It is assumed that all products supplied by the assessed company meet market demands and the
objectives and measures determined are realized as scheduled and with expected profits;
⑤ It is assumed that there are no significant changes in the interest rate, exchange rate, tax base
and tax rate within the normal range stipulated by the country.
⑥ Recoverable amount of asset groups and combination of asset groups is based on the five-year
231
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
budget approved by the Management, and is calculated with the cash flow forecasting method.
(5) Impairment of goodwill of the Company's asset groups is detailed as follows:
The recoverable amount of XingDa HongYe was determined by the present value of the
forecasted future cash flow. The future cash flow was determined at the discount rate of 12.88%
based on the financial budget from 2023 to 2027 approved by the Management. The cash flow of
XingDa HongYe for over five years was calculated on the basis of a growth rate of 0%. The
Company engaged Shenzhen Pengxin Assets Appraisal Land Real Estate Appraisal Co., Ltd. to
assess the XingDa HongYe asset group (inclusive of goodwill) by income approach. With the
present value of the forecasted future cash flow of the assets in this asset group as the recoverable
amount, the Asset Valuation Report on the Recoverable Amount of the Asset Group Containing
Goodwill Formed by the Acquisition of Guangdong XingDa HongYe Electronics Co., Ltd. in
Connection with the Goodwill Impairment Test to Be Performed by Konka Group Co., Ltd.
(P.X.Z.P.B.Z. [2023] No. S032) was issued on 15 March 2023 with 31 December 2022 as the
valuation base date. The present value of XingDa HongYe's asset group was RMB276.8654
million on the benchmark date of the assessment, the carrying value of the asset group after
adjustment at fair value (including the overall goodwill) was RMB272.9596 million, and the
carrying value of goodwill (including minority shareholders) was RMB43,523,000. Therefore,
XingDa HongYe had no impairment of goodwill in the year as assessed in the goodwill
impairment test. As of the reporting date, XingDa HongYe has accrued approximately RMB
21.9599 million in goodwill impairment.
21. Long-term Deferred Expenses
Other
Beginning Amortization
Item Increased decreased Ending balance
balance amount
amount
Renova
tion 236,571,769.59 77,776,777.85 50,504,487.78 476,841.42 263,367,218.24
costs
Shoppe
expens 20,710,094.41 16,617,218.73 18,133,772.61 406,460.04 18,787,080.49
e
Others 40,215,519.39 112,613,724.38 44,718,812.67 2,955,226.76 105,155,204.34
Total 297,497,383.39 207,007,720.96 113,357,073.06 3,838,528.22 387,309,503.07
22. Deferred Income Tax Assets/Deferred Income Tax Liabilities
232
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(1) Deferred Income Tax Assets without Offset
Ending balance Beginning balance
Deductible Deferred income Deductible Deferred income
Item
temporary tax liabilities temporary tax liabilities
difference assets difference assets
Deductible losses 3,446,211,696.71 710,037,893.08 1,662,487,029.88 294,364,103.95
Assets
impairment 1,665,450,141.63 364,146,193.07 1,495,008,640.79 341,517,549.45
provision
Deferred Income 90,355,036.00 22,296,259.01 54,518,127.50 13,573,281.87
Accrued expenses 208,346,464.01 49,058,992.22 211,674,351.84 47,600,301.64
Unrealized
internal sales 62,006,060.41 15,501,515.10 34,369,797.29 8,592,449.32
profits
Others 134,840,920.33 29,413,898.14 95,608,084.94 19,668,038.87
Total 5,607,210,319.09 1,190,454,750.62 3,553,666,032.24 725,315,725.10
(2) Lists of Deferred Income Tax Liabilities without Offset
Ending balance Beginning balance
Taxable Deferred income Taxable Deferred income
Item
temporary tax liabilities temporary tax liabilities
difference Liability difference Liability
Estimated added
value of assets
193,084,308.55 41,509,033.61 225,287,542.61 46,262,753.72
not under the
same control
Prepaid interest 46,965,768.40 11,741,442.10 51,003,370.16 12,750,842.54
Accelerated
depreciation of 4,406,228.55 1,376,446.54 6,990,324.63 1,596,656.16
fixed assets
Financial assets at
fair value through 98,900,582.49 24,725,145.63 27,830,779.75 6,957,694.94
profit or loss
Others 42,438,733.89 10,183,869.09 37,306,538.44 9,326,634.61
Total 385,795,621.88 89,535,936.97 348,418,555.59 76,894,581.97
(3) List of Unrecognized Deferred Income Tax Assets
Item Ending balance Beginning balance
233
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance Beginning balance
Deductible losses 2,114,844,242.75 2,210,991,564.05
Deductible temporary difference 2,967,427,358.07 2,024,354,413.51
Total 5,082,271,600.82 4,235,345,977.56
(4) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the
Following Years
Year Ending balance Beginning balance Remarks
2022 338,228,367.62
2023 134,203,193.22 150,048,845.66
2024 92,292,924.99 192,104,714.11
2025 136,655,028.18 503,798,833.87
2026 263,654,830.43 1,026,810,802.79
2027 and following
1,488,038,265.93
years
Total 2,114,844,242.75 2,210,991,564.05
23. Other Non-current Assets
Ending balance
Item Impairment
Carrying balance Carrying value
provision
Prepayment for land-purchase 1,459,111,732.63 1,459,111,732.63
Prepayment for construction,
equipment and other long-term 251,133,645.63 251,133,645.63
assets
Total 1,710,245,378.26 1,710,245,378.26
（Continued）
Opening balance
Item Impairment
Carrying balance Carrying value
provision
Prepayment for land-purchase 2,584,957,360.50 2,584,957,360.50
Prepayment for construction,
equipment and other long-term 63,573,129.62 63,573,129.62
assets
Total 2,648,530,490.12 2,648,530,490.12
234
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
24. Short-term Borrowings
(1) Category of Short-term Borrowings
Item Ending balance Opening balance Note
Credit loan 5,252,631,775.26 7,178,420,980.60
Guarantee loan 1,953,423,601.39 2,382,534,766.48 ①②③④⑤⑥⑦⑧
Mortgage loan 373,503,928.32 359,719,374.00 ⑨⑩
Total 7,579,559,304.97 9,920,675,121.08
① The Company provides joint and several liability guarantee for the short-term borrowings totaling
RMB996,869,990.28 to its subsidiaries Electronic Technology, Anhui Konka, Dongguan Konka,
Sichuan Konka, Yibin Smart, Liaoyang Kangshun Smart, Jiangxi Konka, Jiangxi High-permeability
Substrate, Xinfeng Microcrystalline, Anhui Tongchuang, and Bokang Precision.
② The Company has obtained short-term borrowings amounting to RMB801,014,444.44 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.
③ The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting to
RMB2,400,000.00 from Shenzhen Sub-branch of Bank of Hangzhou Co., Ltd., for which Shenzhen
High-tech Investment and Financing Guarantee Co., Ltd. provides guarantee.
④ The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting to
RMB2,900,000.00 from Shenzhen Futian Sub-branch of Bank of China Co., Ltd., for which Shenzhen
SME Financing Guarantee Co., Ltd. provides guarantee.
⑤ A subsidiary of the Company, Konka Ventures, obtained a short-term loan of RMB2,200,000.00
from Bank of China, Shenzhen Futian Sub-branch, which was guaranteed by Shenzhen Qianhai
Datang Technology Co., Ltd.
⑥ Ningbo Kanghanrui Electric, a subsidiary of the Company, obtained a short-term loan of
RMB20,000,000.00 from Cixi Central District Sub-branch of Bank of Ningbo and was guaranteed
jointly and severally by the Company and KEG.
⑦ Ningbo Kanghanrui Electric, a subsidiary of the Company, obtained a short-term loan of
RMB30,000,000.00 from Bank of China, Cixi Guancheng Sub-branch, which was guaranteed jointly
and severally by the Company and KEG in the ratio of 3:2 respectively.
235
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
⑧ The Company obtained a short-term loan of RMB98,039,166.67 from CGB, Shenzhen Branch,
which was jointly and severally guaranteed by the Company's parent company, OCT Group.
⑨ Anhui Konka, a subsidiary of the Company, obtained a short-term loan of US$599,255.55
(equivalent to RMB4,173,575.27) from Bank of China, Chuzhou Branch by pledging land use rights
with a carrying value of RMB36,665,009.33 and buildings and constructions with a carrying value of
RMB424,320,114.97 as collaterals.
⑩ Anhui Konka, a subsidiary of the Company, obtained a short-term loan of
RMB140,200,700.27 from Bank of China, Chuzhou Branch by pledging land use rights with a
carrying value of RMB36,665,009.33 and buildings and constructions with a carrying value of
RMB424,320,114.97 as collaterals.
Jiangsu Konka Intelligent, a subsidiary of the Company, obtained a short-term loan of
RMB40,054,388.90 from the Changzhou Branch of China Zheshang Bank Co., Ltd. by pledging
land use rights with a carrying value of RMB14,217,813.03 and buildings and constructions with
a carrying value of RMB38,126,186.72 as collaterals.
Xingda Hongye, a subsidiary of the Company, obtained a short-term loan of
RMB95,136,430.55 from Zhongshan Fusha Sub-branch of Zhongshan Rural Commercial Bank
Co. Ltd. by using land use rights with a carrying value of RMB13,580,993.18 and buildings and
constructions with a carrying value of RMB37,968,854.48 as collaterals and pledging time
deposit certificates of RMB19,800,000.00, with Hu Zehong providing joint and several guarantee.
Anhui Tongchuang, a subsidiary of the Company, obtained a short-term loan of
RMB93,938,833.33 from China Zheshang Bank, Hefei Branch by pledging land use rights with a
carrying value of RMB17,944,663.84 and buildings and constructions with a carrying value of
RMB145,172,450.55 as collaterals.
(2) Outstanding Short-term Borrowings Overdue
There were no outstanding short-term borrowings overdue at the period-end.
25. Notes Payable
Category Ending balance Opening balance
Bank’s acceptance bill 881,426,104.13 729,653,866.95
Commercial acceptance bill 173,147,717.91 386,683,091.96
Total 1,054,573,822.04 1,116,336,958.91
236
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
26. Accounts Payable
Item Ending balance Opening balance
Within 1 year 2,330,698,958.02 3,479,614,154.99
1 to 2 years 155,636,729.60 187,662,627.95
2 to 3 years 89,142,446.14 85,964,325.66
Over 3 years 84,468,429.17 31,073,982.81
Total 2,659,946,562.93 3,784,315,091.41
27. Advances from Customers
Type of note Ending balance Opening balance
Rentals 825.69
Total 825.69
28. Contract Liabilities
Item Ending balance Opening balance
Sales advances received 601,044,358.35 652,910,408.02
Total 601,044,358.35 652,910,408.02
29. Payroll Payable
(1) List of Payroll Payable
Item Opening Increase in this Decrease in this Ending balance
balance year year
List of Short-
409,391,936.17 1,554,591,924.80 1,620,337,182.36 343,646,678.61
term Salary
Post-
employment
benefit-defined 1,203,348.63 118,201,755.04 114,804,499.69 4,600,603.98
contribution
plans
Termination
151,800.00 27,369,218.97 27,160,097.51 360,921.46
benefits
Current portion
of other
benefits
Total 410,747,084.80 1,700,162,898.81 1,762,301,779.56 348,608,204.05
237
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(2) List of Short-term Salary
Item Opening Increase in this Decrease in this Ending balance
balance year year
Salary, bonus,
allowance, 399,855,780.86 1,368,114,784.28 1,433,286,512.24 334,684,052.90
subsidy
Welfare for
952,201.64 65,299,239.32 62,314,935.22 3,936,505.74
employees
Social security
1,256,304.20 53,585,546.29 53,782,946.66 1,058,903.83
expense
Of which:
Medical
955,995.78 48,193,997.49 48,607,940.30 542,052.97
insurance
premiums
Work-
related injury 68,005.10 3,158,080.97 2,967,539.00 258,547.07
insurance
Maternity
232,303.32 2,233,467.83 2,207,467.36 258,303.79
insurance
Housing fund 137,726.03 55,672,772.08 55,508,209.17 302,288.94
Labor union
budget and
employee 6,703,757.33 7,443,779.81 11,331,985.92 2,815,551.22
education
budget
Short-term
absence with
payment
Short-term
profit sharing
plan
Others 486,166.11 4,475,803.02 4,112,593.15 849,375.98
Total 409,391,936.17 1,554,591,924.80 1,620,337,182.36 343,646,678.61
(3) List of Defined Contribution Plan
Item Opening Increase in this Decrease in this Ending balance
balance year year
238
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Opening Increase in this Decrease in this Ending balance
balance year year
Basic
endowment 1,109,814.46 115,465,425.84 112,165,212.79 4,410,027.51
insurance
Unemployment
93,534.17 2,736,329.20 2,639,286.90 190,576.47
insurance
Annuity
Total 1,203,348.63 118,201,755.04 114,804,499.69 4,600,603.98
30. Tax and Fees Payables
Item Ending balance Opening balance
Corporate income tax 178,994,811.66 168,026,929.08
VAT 60,178,835.36 59,692,464.80
Fund for disposing abandoned appliances 14,716,729.00 30,077,111.00
and electronic products
Urban maintenance and construction tax 3,710,919.05 3,696,423.98
Education fees and local education 2,735,721.75 2,840,889.56
Surcharge
Stamp duty 9,955,063.53 6,255,372.18
Land use tax 11,028,106.31 8,812,080.36
Personal income tax 2,477,590.24 9,602,569.88
Property tax 4,511,721.21 4,287,226.80
Customs duty 1,624,434.41 1,962,596.87
Others 1,168,746.84 571,505.90
Total 291,102,679.36 295,825,170.41
31. Other Payables
Item Ending balance Opening balance
Interest payable 29,590,464.00 174,383,177.08
Other payables 1,866,120,909.34 1,613,794,571.51
Total 1,895,711,373.34 1,788,177,748.59
31.1 Interests Payable
Item Ending balance Opening balance
Interest on corporate bonds 171,218,888.92
Interest on long-term borrowings with
interest paid by installment and principal 29,271,307.22
239
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance Opening balance
paid at maturity
Interest payable on short-term borrowings 319,156.78 3,164,288.16
Others 29,590,464.00 174,383,177.08
31.2 Other Payables
(1) Listed by Nature of Account
Nature Ending balance Opening balance
Intercourse funds 677,014,483.12 177,524,073.79
Expenses payable 538,693,780.45 755,393,561.40
Related party borrowing 286,552,967.74 313,104,212.26
Cash deposit and front 286,952,679.25 240,638,514.04
Advance money 5,482,995.92 8,282,111.32
Equity transfer payment 6,302,796.96 67,482,796.96
Others 65,121,205.90 51,369,301.74
Total 1,866,120,909.34 1,613,794,571.51
(2) Other Significant Payables Aging over One Year
Unpaid/Un-carry-over
Name of entity Ending balance
reason
The Third Construction Engineeting
Company Ltd. of China Construction Second 37,401,559.68 Not yet due for payment
Engineering Bureau
Total 37,401,559.68
32. Non-current liabilities due within one year
Item Ending balance Opening balance
Current portion of long-term borrowings 249,391,640.39 2,087,374,444.43
Current portion of long-term payables 139,213,550.70 270,119,697.71
Bonds payable due within 1 year 2,700,000,000.00
Lease liabilities due within 1 year 20,614,839.60 32,092,127.18
Total 409,220,030.69 5,089,586,269.32
33. Other Current Liabilities
Item Ending balance Opening balance
Accounts payable with trade acceptance 26,744,560.49
notes 63,854,223.36
240
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance Opening balance
Tax to be charged off 21,806,789.93 30,629,396.14
Refunds payable 19,898,433.29 15,258,568.74
Total 68,449,783.71 109,742,188.24
34. Long-term Borrowings
（1） Category of Long-term Borrowings
Item Ending balance Opening balance Note
Guarantee loan 3,116,984,312.66 3,185,072,777.76 a)b)c)d)e)f)
Mortgage loan 849,816,227.52 638,086,279.01 g)h)i)j) k)
Entrusted borrowings 2,595,372,200.43 1,322,271,760.09 l)
Credit loan 2,536,925,213.87 471,084,166.66
Pledge loan 57,225,088.80 m)n)
Less: Current portion 249,391,640.39 2,087,374,444.43
Total 8,906,931,402.89 3,529,140,539.09
a) The Company has obtained long-term borrowings amounting to RMB1,844,741,249.94
from Shenzhen Branch of China Guangfa Bank Co., Ltd., the term of which is from 24 June 2021
to 22 August 2025, 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 RMB10,007,777.78 from
Shenzhen Branch of China Development Bank Co., Ltd., the term of which is from 22 December
2022 to 22 December 2025, and for which the Company's parent company OCT Group provides
joint and several liability guarantee at the maximum amount.
c) The Company has obtained long-term borrowings amounting to RMB1,001,054,166.66
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.
d) The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB140,177,527.78 from Chuzhou Plaza Sub-branch of China Construction Bank Co., Ltd., of
which the term 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.,
241
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Ltd. has obtained long-term borrowings amounting to RMB71,276,580.00 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 XingDa HongYe has obtained long-term borrowings
amounting to RMB49,727,010.50 from Zhuhai Branch of Xiamen International Bank Co., Ltd.,
and for which the Company provides joint and several liability guarantee.
g) The Company has obtained long-term borrowings amounting to RMB423,651,638.20
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 RMB5,478,330.62 and investment properties of a carrying value of RMB104,066,818.20
and housing buildings of a carrying value of RMB75,596,340.49 as mortgage.
h) The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB73,412,096.90 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
RMB18,408,866.67 and housing buildings of a carrying value of RMB190,336,701.09 as
mortgage and the Company provides joint and several liability guarantee.
i) The Company's subsidiary Dongguan Konka has obtained long-term borrowings
amounting to RMB296,387,014.74 from Dongguan Fenggang Sub-branch of Agricultural Bank
of China Co., Ltd., the term of which is from 22 June 2021 to 21 October 2030, and for which it
provides land use rights of a carrying value of RMB189,901,786.67 as mortgage and the
Company provides joint and several liability guarantee.
j) The Company's subsidiary Frestec Smart Home has obtained long-term borrowings
amounting to RMB10,013,750.00 from Xinxiang Jiankang Road Sub-branch of China CITIC
Bank Corporation Limited, the term of which is from 27 October 2022 to 4 May 2030, and for
which it provides land use rights of a carring value of RMB92,198,819.50 as mortgage and the
Company as well as Meng Honggang, the legal person of Chuzhou Hanshang Electric Appliance
Co.,Ltd., provide joint and several liability guarantee respectively at 51% and 49%.
k) The Company's subsidiary Chongqing Konka has obtained long-term borrowings
amounting to RMB46,351,727.68 from Xinxiang Jiankang Road Sub-branch of China CITIC
Bank Corporation Limited, the term of which is from 30 December 2022 to 19 December 2037,
242
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
and for which it provides housing buildings of a carrying value of RMB343,759,703.75 and land
use rights of a carring value of RMB45,561,847.85 as mortgage and the Company provide joint
and several liability guarantee at the maximum amount.
l) The Company's parent company OCT Group has extended entrusted loans amounting to
RMB2,595,372,200.43 to the Company through China Merchants Bank Co., Ltd., the term of
which is from 10 January 2022 to 25 February 2024.
m) The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB20,526,934.75 from Yibin Sub-Branch of Postal Savings Bank of China Co.,
Ltd. with the accounts receivable arising from the prospective earnings from a concession
agreement with an appraisal value of RMB595,900,000.00 as pledge, and the term thereof is from
30 June 2022 to 15 April 2040.
n) The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB36,698,154.05 from Yibin Sub-Branch of Industrial and Commercial Bank of
China Co., Ltd. with the accounts receivable arising from the prospective earnings from a
concession agreement with an appraisal value of RMB595,900,000.00 as pledge, and the term
thereof is from 30 June 2022 to 15 April 2040.
35. Bonds Payable
（1） List of Bonds Payable
Item Ending balance Beginning balance
Corporate bonds 4,792,392,044.13 4,993,698,899.30
Less: Bonds payable due within 1 year 2,700,000,000.00
Total 4,792,392,044.13 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 Dur
Total par value Issuing date Issuing amount Beginning balance
name ation
19Konka02 14 January 3
1,500,000,000.00 1,494,750,000.00 1,500,000,000.00
(note ①) 2019
years
19Konka04 3
500,000,000.00 3 June 2019 498,250,000.00 499,770,702.34
(note ②) years
19Konka06 700,000,000.00 22 July 2019 3 697,550,000.00 699,614,779.74
243
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Bonds Dur
Total par value Issuing date Issuing amount Beginning balance
name ation
(note ③) years
21Konka01 8 January 3
1,000,000,000.00 996,500,000.00 997,798,742.17
(note ④) 2021
years
21Konka02 3
500,000,000.00 21 May 2021 498,250,000.00 498,715,932.92
(note ⑤) years
21Konka03 3
800,000,000.00 9 July 2021 797,200,000.00 797,798,742.13
(note ⑥) years
22Konka01 3
1,200,000,000.00 14 July 2022 1,195,800,000.00
（note ⑦） years
22Konka03 8 September 3
600,000,000.00 597,900,000.00
（note ⑧） 2022
years
22Konka05 18 October 3
600,000,000.00 597,900,000.00
（note ⑨） 2022
years
Total 7,400,000,000.00 7,374,100,000.00 4,993,698,899.30
(continued)
Amortization of
Issued in the Interest accrued
Name premium and
Reporting Period at par value
depreciation
19Konka02（note①） 3,125,000.00
19Konka04（note②） 9,791,666.69 229,297.66
19Konka06（note③） 18,460,555.56 385,220.26
21Konka01（note④） 43,732,777.82 1,100,628.96
21Konka02（note⑤） 12,277,777.80 550,314.48
21Konka03（note⑥） 15,185,555.54 880,503.12
22Konka01（note⑦） 1,195,800,000.00 19,380,000.00 898,113.18
22Konka03（note⑧） 597,900,000.00 6,600,000.00 338,993.73
22Konka05（note⑨） 597,900,000.00 5,250,000.00 283,962.28
Total 2,391,600,000.00 133,803,333.41 4,667,033.67
(continued)
Repaid in the Reporting
Name Ending balance
Period
19Konka02（note①） 1,503,125,000.00
19Konka04（note②） 509,791,666.69
244
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Repaid in the Reporting
Name Ending balance
Period
19Konka06（note③） 718,460,555.56
21Konka01（note④） 1,042,632,148.95
21Konka02（note⑤） 511,544,025.20
21Konka03（note⑥） 813,864,800.79
22Konka01（note⑦） 1,216,078,113.18
22Konka03（note⑧） 604,838,993.73
22Konka05（note⑨） 603,433,962.28
Total 2,731,377,222.25 4,792,392,044.13
Note 1:
① On 14 January 2019, the Company issued RMB1.5 billion of private placement of 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 of 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 of corporate
bonds with the duration of 3 years, the annual interest rate of 4.70% and the due date of 22 July
2022. "19 Konka 06" has been fully paid and delisted from the exchange on 22 July 2022.
④ On 8 January 2021, the Company issued RMB1 billion of private placement of 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 of 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 of corporate
bonds with the duration of 3 years, the annual interest rate of 3.95% and the due date of 9 July
2024.
⑦ On 14 July 2022, the Company issued RMB1.2 billion of public issuance of corporate bonds
with the duration of 3 years, the annual interest rate of 3.23% and the due date of 14 July 2025.
⑧ On 8 September 2022, the Company issued RMB600 million of private placement of corporate
245
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
bonds with the duration of 3 years, the annual interest rate of 3.30% and the due date of 8
September 2025.
⑨ On 18 October 2022, the Company issued RMB600 million of private placement of corporate
bonds with the duration of 3 years, the annual interest rate of 3.50% and the due date of 18
October 2025.
Note 2: OCT Group provided full-amount, unconditional and irrevocable joint and several
liability guarantee for the due payment of the public issuance and private placement of corporate
bonds.
Note 3: The current year's repayments include principal and interest
36. Lease Liabilities
Item Ending balance Opening balance
Lease liabilities 57,201,478.76 74,624,996.81
Less: Lease liabilities due within 1
20,614,839.60 32,092,127.18
year (see Note VI-32)
Total 36,586,639.16 42,532,869.63
37. Long-term Payables
Item Ending balance Opening balance
Accrued financing lease outlay 152,547,691.61 434,481,614.08
Less: Unrecognized financing expenses 5,370,013.73 23,674,345.59
Less: Current portion (see Note VI-
139,213,550.70 270,119,697.71
32)
Total 7,964,127.18 140,687,570.78
38. Long-term Employee Remuneration Payables
Item Ending balance Opening balance
Termination benefits-net liabilities of
4,894,209.73 5,111,296.75
defined contribution plans
Total 4,894,209.73 5,111,296.75
39. Accrued Liabilities
Ending balance Opening balance Reason for
Item
formation
“Three guarantees”
Product quality assurance 74,590,486.63 106,069,944.34
after-sales of home
246
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Ending balance Opening balance Reason for
Item
formation
appliances
Performance compensation 82,723,436.52
Pending lawsuits 206,591.51 206,591.51
Discard expenses 1,875,064.89
Total 159,395,579.55 106,276,535.85
247
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
40. Deferred Revenue
Item Opening balance Increase Decrease Ending balance Formation reason
Government grants 206,302,424.92 162,651,491.70 34,108,950.31 334,844,966.31 Related to aaassets/income
Total 206,302,424.92 162,651,491.70 34,108,950.31 334,844,966.31
40.1 Category of Deferred Income
Amount
included in Amount included Related to
Opening
List of Government Subsidy Increase non-operating in other income Other changes Ending balance assets/
balance
income this this year income
year
Plant construction subsidy for Yibin Related to
71,448,167.88 36,489,600.00 2,072,799.11 105,864,968.77
Konka Industrial Park assets
Medical waste centralized treatment Related to
4,583,311.51 24,088,001.42 265,475.12 28,405,837.81
project in Gaoxian County, Yibin City assets
Subsidy for industrial R&D Related to
20,000,000.00 20,000,000.00
assets
Returned payments for land by Related to
18,720,000.03 392,727.24 18,327,272.79
Chongqing Konka assets
Relocation subsidy Related to
13,085,700.00 13,085,700.00
income
Plant decoration subsidy for Yibin Related to
12,952,939.23 1,439,215.43 11,513,723.80
Konka Technology Park assets
Special funds for supporting the Related to
11,440,000.00 11,440,000.00
development of advanced assets
248
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount
included in Amount included Related to
Opening
List of Government Subsidy Increase non-operating in other income Other changes Ending balance assets/
balance
income this this year income
year
manufacturing and modern service
industries
Subsidy for high-tech innovation and Related to
11,373,198.33 777,166.72 10,596,031.61
operation in Yancheng assets
Other government subsidies related to Related to
assets/income
67,224,807.94 77,548,190.28 24,161,566.69 5,000,000.00 115,611,431.53 assets/incom
e
Total 206,302,424.92 162,651,491.70 29,108,950.31 5,000,000.00 334,844,966.31
249
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Note: Other changes refer to that the ending deferred income decreased RMB5 million due
to the loss of control by Hefei KONSEMI Storage Technology Co., Ltd.
41. Other Non-current Liabilities
Item Ending balance Opening balance
Contract liabilities over one year 314,233,260.08 104,610,663.76
Total 314,233,260.08 104,610,663.76
42. Share Capital
Change in this year (+, -)
New
Bonu Bonus
share
Item Opening balance s issue Oth Subt Ending balance
s
share from ers otal
issue
s profit
d
Total 2,407,945,408.00
2,407,945,408.00
shares
43. Capital Surplus
Increase in this Decrease in this
Item Opening balance Ending balance
year year
Other capital
234,389,963.10 135,806,760.09 4,949,362.14 365,247,361.05
reserves
Total 234,389,963.10 135,806,760.09 4,949,362.14 365,247,361.05
Note: Capital reserves for the current period - other capital reserves increase and decrease
due to the main reasons:
a) The shareholding company Shandong Econ Technology Co., Ltd. increased capital and
shares, resulting in an increase in other capital reserves of RMB135,296,760.09;
b) Other capital reserves increased by RMB510,000.00 due to the donations by the minority
shareholders of the subsidiary Shengxing Industrial;
c) The disposal of part of the equity of Chutian Dragon Smart Card Co., Ltd., led to the
reduction of other capital reserves by RMB 4,765,728.77.;
d) The disposal of part of the equity of Chongqing YPFun Technology Co., Ltd., led in the
reduction of other capital reserves by RMB 183,633.37.
250
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
44. Other Comprehensive Income
Amount incurred in this year
Less: Less:
recorded in recorded in
other other
comprehensi comprehensi
Attributable
Beginning of the Amount ve income in ve income in Less: Attributable to
to owners of Ending
Item year incurred before prior period prior period Income non-controlling
the Company Balance
Balance income tax in and and tax interests after
as the parent
this year transferred transferred expense tax
after tax
in profit or in retained
loss in the earnings in
Current the Current
Period Period
I. Other comprehensive
income that may not be
-6,398,878.20 -6,398,878.20
reclassified to profit or
loss
Changes in fair value
of other equity -6,398,878.20 -6,398,878.20
instrument investment\
Others
II. Other
-13,937,209.67 7,669,161.80 6,070,906.24 1,598,255.56 -7,866,303.43
comprehensive income
251
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in this year
Less: Less:
recorded in recorded in
other other
comprehensi comprehensi
Attributable
Beginning of the Amount ve income in ve income in Less: Attributable to
to owners of Ending
Item year incurred before prior period prior period Income non-controlling
the Company Balance
Balance income tax in and and tax interests after
as the parent
this year transferred transferred expense tax
after tax
in profit or in retained
loss in the earnings in
Current the Current
Period Period
that may subsequently
be reclassified to profit
or loss
Of which: Other
comprehensive income
that will be reclassified -1,215,133.65 -2,814,803.62 -2,814,803.62 -4,029,937.27
to profit or loss under
the equity method
Differences arising
from translation of
foreign currency- -12,722,076.02 10,483,965.42 8,885,709.86 1,598,255.56 -3,836,366.16
denominated financial
statements
252
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in this year
Less: Less:
recorded in recorded in
other other
comprehensi comprehensi
Attributable
Beginning of the Amount ve income in ve income in Less: Attributable to
to owners of Ending
Item year incurred before prior period prior period Income non-controlling
the Company Balance
Balance income tax in and and tax interests after
as the parent
this year transferred transferred expense tax
after tax
in profit or in retained
loss in the earnings in
Current the Current
Period Period
Total of other
-20,336,087.87 7,669,161.80 6,070,906.24 1,598,255.56 -14,265,181.63
comprehensive income
253
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
45. Surplus Reserve
Increase in Decrease in
Item Opening balance Ending balance
this year this year
Statutory 1,005,961,774.19
surplus 1,005,961,774.19
reserves
Discretional 238,218,590.05
surplus 238,218,590.05
reserves
Total 1,244,180,364.24 1,244,180,364.24
46. Retained Earnings
Item This Year Last year
Closing Balance of Last Year 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
Correction of important prior
period errors
Consolidation scope changes
under the same control
Other adjustment factors
Opening Balance of Current Year 5,229,098,788.94 4,595,371,391.63
Add: Net profit attributable to owners of the -1,471,409,748.21 905,352,997.68
Company as the parent
Other comprehensive income carried
1,628,195.00
forward to retained earnings
Less: Withdrawal of statutory surplus reserve 32,459,254.57
Withdrawal of discretional surplus
reserves
Dividend of ordinary shares payable 120,397,270.40 240,794,540.80
Closing Balance of the Current Period 3,637,291,770.33 5,229,098,788.94
47. Operating Revenue and Cost of Sales
（1） Operating Revenue and Cost of Sales
Amount incurred in this year Amount incurred last year
Item
Revenue Cost Revenue Cost
Lucrative
28,607,497,919.19 28,075,348,270.98 48,232,324,902.09 46,690,427,987.52
business
254
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this year Amount incurred last year
Others 1,000,356,336.08 713,290,122.90 874,188,767.49 711,456,994.01
Total 29,607,854,255.27 28,788,638,393.88 49,106,513,669.58 47,401,884,981.53
（2） List of Deduction from Operating Income
Same period of last
This year
Item Details year Details
(RMB)
(RMB)
Amount of operating
29,607,854,255.27 49,106,513,669.58
income
Total amount of items
deducted from 823,347,409.73 579,266,272.20
operating income
Proportion of the total
amount of items
deducted from 2.78 1.18
operation income in
operating income (%)
I. Business income irrelevant to principal business
1. Other business
income outside normal
business. E.g., income
from the lease of fixed
assets, intangible Income from
Income from
assets, packaging sales of waste
sales of waste
products,
materials, sales products, utility
utility bills,
materials, non- bills, rental
rental income,
income, income
monetary asset 823,347,409.73 579,266,272.20 income from
from material
exchange with material sales
sales and other
and other
materials and income not
income not
related to the
operation of entrusted related to the
main business
management business, main business
and income that is
included in the income
from primary business
but is outside the
255
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Same period of last
This year
Item Details year Details
(RMB)
(RMB)
normal business of the
listed company.
2. Income from non-
qualified pseudo-
banking businesses;
such as interest
income from borrowed
funds; income from
new pseudo-banking
businesses in the
reporting and previous
fiscal years, such as
income from
guarantee, commercial
factoring, small loans,
finance lease and
pawn, except finance
lease business
conducted for the sale
of primary products.
3. Income from new
trading businesses in
the reporting and
previous fiscal years.
4. Income from related
transactions irrelevant
to the existing normal
operation businesses
of the listed company.
5. Income of
subsidiaries acquired
in business
combination under the
256
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Same period of last
This year
Item Details year Details
(RMB)
(RMB)
same control from the
period-beginning to
the combination date.
6. Income from
businesses that have
not yet had or are
difficult to have a
stable business model.
Subtotal of business
income irrelevant to 823,347,409.73 579,266,272.20
principal business
II. Income without commercial substance
1. Income from
transactions or events
that do not
significantly alter the
risk, timing or amount
of future cash flows of
the company.
2. Income from
transactions without
true business. E.g.,
false income realized
in the way of self-
transaction and false
income from
transactions by means
of Internet technology
ore else otherwise.
3. Income from
businesses at unfair
trade prices.
4. Income from
257
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Same period of last
This year
Item Details year Details
(RMB)
(RMB)
subsidiaries or
businesses acquired in
business combination
at unfair
considerations or by
non-trading means in
the reporting fiscal
year.
5. Income involved in
non-standard audit
opinions in audit
opinions.
6. Other income from
transactions or events
without commercial
rationality.
Subtotal of income
without commercial
substance
III. Other income
irrelevant to principal
business or without
commercial substance
Amount of operating
28,784,506,845.54 48,527,247,397.38
income after deduction
（3） Details of Income from Contracts
Amount incurred in this Total
Category of contracts
year
Product categories
Of which: Industry trade business 16,052,517,705.95 16,052,517,705.95
Color TV business 5,023,097,945.06 5,023,097,945.06
White Goods Sub-Division 3,929,504,730.97 3,929,504,730.97
258
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in this Total
Category of contracts
year
Environmental Protection Sub- 1,548,557,255.52 1,548,557,255.52
Division
PCB business 663,849,487.53 663,849,487.53
Semi-conductor business 134,579,890.70 134,579,890.70
Others 2,255,747,239.54 2,255,747,239.54
Total 29,607,854,255.27 29,607,854,255.27
Classified by operating region
Of which: Domestic 14,845,908,414.38 14,845,908,414.38
Overseas 14,761,945,840.89 14,761,945,840.89
Total 29,607,854,255.27 29,607,854,255.27
（4） Main Operations (Classified by product)
Amount incurred in this year Amount incurred last year
Item
Revenue Cost Revenue Cost
Industry 16,052,517,705.95 15,948,127,861.17
trade 29,682,677,483.94 29,514,534,704.12
business
Color TV
5,023,097,945.06 5,081,621,150.13 7,300,340,878.11 6,922,606,555.81
business
White Goods
3,929,504,730.97 3,523,413,567.24 3,699,285,362.91 3,395,382,780.50
Sub-Division
Environment 1,548,557,255.52 1,511,874,387.74
al Protection 4,354,614,711.52 4,030,685,013.80
Sub-Division
PCB
663,849,487.53 627,609,981.96 913,703,904.09 852,737,298.50
business
Semi-
conductor 134,579,890.70 148,687,958.92 321,958,525.17 306,296,431.81
business
Others 1,255,390,903.46 1,234,013,363.82 1,959,744,036.35 1,668,185,202.98
Total 28,607,497,919.19 28,075,348,270.98 48,232,324,902.09 46,690,427,987.52
（5） Information in relation to the trade price apportioned to the residual contract
performance obligation:
The amount of revenue corresponding to performance obligations that have been signed
but have not yet been fulfilled or completed at the end of the year is 1265398010.74 yuan, of
which 1248710925.11 yuan is expected to be recognized as revenue in 2023, and the
remaining 16687085.63 yuan is expected to be recognized as revenue in 2024 and
subsequent years.
259
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
48. Taxes and Surcharges
Item Amount incurred in this Amount incurred last year
year
Stamp duty 39,436,591.84 37,561,315.54
Land use tax 27,096,008.05 25,605,090.28
Urban maintenance and construction tax 14,998,902.21 14,388,124.18
Property tax 25,401,754.51 11,346,770.43
Education Surcharge 6,410,329.82 7,253,707.52
Local education surcharge 4,993,164.43 3,648,187.79
Water resources fund 590,860.27 697,990.97
Others 412,208.88 6,577,488.45
Total 119,339,820.01 107,078,675.16
49. Sales Costs
Item Amount incurred in this Amount incurred last year
year
Advertising expense 362,795,424.61 371,795,626.31
Employee remuneration 349,085,455.73 394,544,994.62
Warranty fee 162,483,458.52 190,310,768.84
Promotional activities 132,984,672.13 157,616,787.85
Logistic Fee 76,005,945.85 99,881,005.27
Taxes and fund 43,602,463.99 65,692,017.16
Rental charges 20,000,782.87 21,204,278.37
Travel expense 16,412,701.43 20,432,505.61
Entertainment expenses 12,319,781.49 15,367,291.49
Exhibition expenses 3,049,900.87 8,819,407.71
Others 61,404,148.28 82,398,212.14
Total 1,240,144,735.77 1,428,062,895.37
50. Management Costs
Item Amount incurred in this Amount incurred last year
year
Employee remuneration 536,410,042.48 563,542,871.74
Depreciation charge 181,356,034.20 127,774,142.65
260
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this Amount incurred last year
year
Intermediary fees 70,364,121.16 51,683,999.24
Utility bills 15,251,139.78 10,672,898.71
Travel expense 11,799,889.35 18,560,183.40
Loss on scraping of inventories 5,066,889.35 4,813,357.43
Patent fees 369,573.26 26,798,865.14
Others 129,029,900.70 156,602,798.81
Total 949,647,590.28 960,449,117.12
51. R&D Expenses
Item Amount incurred in this Amount incurred last year
year
Labor cost 291,536,802.63 307,372,953.90
Depreciation and amortization expense 76,242,059.21 79,082,388.10
New product trial production expense 53,488,226.67 86,850,733.52
Material expense 38,872,892.09 36,669,220.05
Commission service fee 13,376,731.07 38,572,290.59
Testing expense 4,302,928.77 5,327,812.07
Information use fee 918,800.49 3,154,499.61
Others 65,143,583.96 59,305,590.17
Total 543,882,024.89 616,335,488.01
52. Financial Expenses
Item Amount incurred in this Amount incurred last year
year
Interest expense 913,721,408.10 1,003,080,641.99
Less: Interest income 237,115,652.09 169,492,982.89
Add: Exchange loss -198,292,207.05 70,202,754.70
Other expenses 44,110,194.22 48,851,859.95
Total 522,423,743.18 952,642,273.75
53. Other Income
261
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in this
Sources Amount incurred last year
year
Support funds 695,511,711.98 881,725,458.00
Rewards and subsidies 138,985,910.13 176,611,973.06
Transfer of deferred income 29,108,950.31 261,773,501.33
Software tax refund 12,377,884.09 12,585,857.26
Post subsidies 5,205,565.67 2,454,397.17
Subsidies for L/C exports 348,111.95 314,298.00
Tax refund and return 47,174,366.68 18,069,095.29
Total 928,712,500.81 1,353,534,580.11
54. Investment Returns
Amount incurred in this
Item Amount incurred last year
year
Long-term equity investment income
123,392,731.97 78,926,555.74
accounted by equity method
Investment income from disposal of long-
509,249,136.96 2,854,953,098.82
term equity investment
Investment income from disposal of
trading financial assets
Income from remeasurement of residual
stock rights at fair value after losing 239,092,139.68 1,169,723,182.43
control power
Interest income earned on investment in
69,651,317.87 73,807,616.46
debt obligations during the holding period
Income from entrust financial products and
entrust loans
Adjusted investment income with
unrealized profit incurred from
countercurrent transactions
Investment income from disposal of
financial assets at fair value through profit -5,378,929.04 39,396,495.93
or loss
Total 936,006,397.44 4,216,806,949.38
55. Income from Changes in Fair Value
Sources Amount incurred in this Amount incurred last year
year
Financial assets at fair value through profit
4,560,753.18 52,490,907.33
or loss
Estimated performance compensation -45,292,086.72
Total -40,731,333.54 52,490,907.33
56. Credit Impairment Loss
262
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred in this
Item Amount incurred last year
year
Bad debt loss of notes receivable 4,405,405.84 17,539,258.26
Bad debt loss of accounts receivable -437,154,564.05 -429,297,822.53
Bad debt loss of other receivables -517,135,861.32 -695,515,117.04
Total -949,885,019.53 -1,107,273,681.31
57. Impairment Losses on Assets
Amount incurred in this
Item Amount incurred last year
year
Inventory depreciation loss and contract -156,563,428.63 -160,020,309.63
performance cost impairment loss
Contractual Asset Impairment Loss 12,125,778.69
Impairment loss on long-term equity
-266,531,254.30
investment
Impairment losses on fixed assets -71,089,375.71 -3,770,121.13
Impairment losses on goodwill -185,773,986.72
Impairment losses on construction in -63,705,515.70 -327,586.21
progress
Impairment losses on intangible assets -4,037,532.29 -38,804,906.72
Total -295,395,852.33 -643,102,386.02
58. Asset Disposal Income (“-” for loss)
Amount recorded in
Amount incurred in Amount incurred
Item non-recurring profit
this year last year
or loss in this year
Incomes from disposal of disposal
groups held for sale
Incomes from disposal of non-
9,580,708.29 571,964.16 9,580,708.29
current assets
Including: incomes from disposal of
non-current assets not classified as 9,580,708.29 571,964.16 9,580,708.29
the held-for-sale assets
Of which: Fixed assets disposal
-2,675,226.73 571,964.16 -2,675,226.73
income
Intangible assets disposal income 12,241,030.45 12,241,030.45
Right-of-use assets disposal
14,904.57 14,904.57
income
Income from non-monetary asset
exchange
Income from the disposal of non-
current assets in debt restructuring
Total 9,580,708.29 571,964.16 9,580,708.29
59. Non-operating Income
263
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
（1） List of Non-operating Income
Amount recorded in
Amount incurred in Amount incurred
Item non-recurring profit
this year last year
or loss in this year
Performance compensation income 72,653,782.00 4,200,000.00 72,653,782.00
Compensation and penalty income 21,714,054.35 47,249,011.10 21,714,054.35
Gains on damage and scrap of non-
917,512.09 361,063.43 917,512.09
current assets
Government subsidies unrelated to
the normal operation of the 11,428,586.31
Company
Income from debt restructuring 19,777.25
Others 29,853,693.56 19,343,094.26 29,853,693.56
Total 125,139,042.00 82,601,532.35 125,139,042.00
（2） Government Subsidies Recorded in Current Profit or Loss
No such cases in the Reporting Period.
60. Non-operating Expenses
Amount recorded in
Amount of current Amount of
Item non-recurring profit
year previous year
or loss in this year
Abnormal inventory loss 148,669,068.79 148,669,068.79
Performance compensation 37,431,349.80 37,431,349.80
Compensation expense 3,369,768.80 1,634,178.14 3,369,768.80
Loss on damage and scrap of non- 3,340,817.47 6,920,746.88 3,340,817.47
current assets
Others 31,913,240.98 15,889,799.33 31,913,240.98
Total 224,724,245.84 24,444,724.35 224,724,245.84
Note: The abnormal loss of inventory is the loss caused by the forced auction of the subsidiary company
affected by the case of minority shareholders, and the company has not waived the claim..
61. Income Tax Expenses
（1） Income Tax Expenses
Item Amount incurred in this year Amount incurred last year
Income tax expense of the year 155,149,364.07 282,256,027.61
Deferred income tax expense -452,505,929.62 482,288,526.58
264
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this year Amount incurred last year
Total -297,356,565.55 764,544,554.19
（2） Adjustment Process of Accounting Profit and Income Tax Expense
Item Amount incurred in this year
Total consolidated profit of this year -2,067,519,855.44
Current income tax expense accounted at
-516,879,963.86
statutory/applicable tax rate
Influence of applying different tax rates by
101,322,820.25
subsidiaries
Influence of income tax before adjustment -1,690,336.55
Influence of non-taxable income -97,122,352.54
Influence of non-deductible costs, expenses and
28,749,700.21
losses
The effect of using deductible losses of deferred
income tax assets that have not been recognized in -37,507,141.07
the previous period
Influence of deductible temporary difference or
deductible losses of unrecognized deferred income 299,873,382.77
tax in the Reporting Period
Changes in the balance of deferred income tax assets/
liabilities in previous period due to adjustment of tax -388,122.22
rate
Others -73,714,552.54
Income tax expenses -297,356,565.55
62. Other Comprehensive Income
For details, refer to "Note VI-44 Other Comprehensive Income".
63. Cash Flow Statement
（1） Cash Generated from/Used in Other Operating/Investing/Financing Activities
1） Other cash received from business activities
Item Amount incurred in this year Amount incurred last year
Income from government subsidy 1,022,967,081.76 1,127,630,135.26
Front money and guarantee deposit 259,156,351.64 425,177,436.15
Intercourse funds 38,841,937.19 209,797,069.63
Interest income from bank deposits 81,268,409.97 71,275,968.05
265
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this year Amount incurred last year
The commercial factoring payment 43,656,915.89 2,793,522.48
Compensation and penalty income 13,515,680.81 16,337,009.60
Others 137,680,649.87 163,971,164.55
Total 1,597,087,027.13 2,016,982,305.72
2） Cash payments related to other operating activities
Item Amount incurred in this year Amount incurred last year
Expense for cash payment 1,284,221,978.23 1,312,250,512.94
Payment for guarantee deposit, cash
428,549,076.52 296,141,059.53
deposit
Payment made on behalf 26,621,620.91 21,862,378.10
Expense for bank handling charges 4,742,304.06 19,675,970.82
Others 225,268,008.86 491,244,850.65
Total 1,969,402,988.58 2,141,174,772.04
3） Other cash received from investment activities
Amount incurred last
Item Amount incurred in this year
year
Recovery of funds borrowing 3,860,647,680.07 1,962,465,274.48
Cash received from acquisition of 2,000.00 23,694.03
subsidiaries
Others 127,885,628.35 425,985,130.82
Total 3,988,535,308.42 2,388,474,099.33
4） Other cash paid for investment activities
Item Amount incurred in this year Amount incurred last year
Payment for funds borrowing 479,034,898.06 421,590,000.00
Cash paid for disposal of subsidiaries 512,222,301.34
Others 2,979,556.70 176,545,630.00
Total 482,014,454.76 1,110,357,931.34
5） Other cash received from funding activities
Amount incurred last
Item Amount incurred in this year
year
Recovery of margin deposit pledged 363,847,783.60 443,925,442.47
266
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred last
Item Amount incurred in this year
year
Recovery of margin deposit pledged 363,847,783.60 443,925,442.47
Receiving funds borrowing 161,410,093.19 504,555,407.07
Financing lease accounts 38,000,000.00
Others 28,100.03 32,643,873.47
Total 525,285,976.82 1,019,124,723.01
6） Other cash paid for funding activities
Amount incurred last
Item Amount incurred in this year
year
Deposit as margin for pledge 378,218,165.91 289,851,369.48
Finance leases 299,950,091.11 468,899,445.22
Repayment of funds borrowing 142,068,831.60 50,523,144.79
Financing cost 37,111,326.66 31,538,566.39
Others 1,816,055.32 87,815,061.07
Total 859,164,470.60 928,627,586.95
（2） Supplemental Information for Cash Flow Statement
Item Amount incurred in this year Amount incurred last year
1. Reconciliation of net profit to net
cash flows generated from operating
activities
Net profit -1,770,163,289.89 806,700,826.10
Add: Provision for impairment of assets 295,395,852.33 643,102,386.02
Credit impairment loss 949,885,019.53 1,107,273,681.31
Depreciation of fixed assets, oil-gas
396,581,885.62 389,517,753.75
assets, and productive biological assets
Depreciation of right-of-use assets 46,766,548.09 46,547,315.20
Amortization of intangible assets 49,235,482.54 80,425,143.85
Amortization of long-term prepaid
113,357,073.06 81,281,582.15
expenses
Losses on disposal of fixed assets,
intangible assets and other long- -9,580,708.29 -571,964.16
lived assets (gains: negative)
267
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this year Amount incurred last year
Losses on scrap of fixed assets (gains:
2,423,305.38 6,559,683.45
negative)
Losses on changes in fair value (gains:
40,731,333.54 -52,490,907.33
negative)
Finance costs (gains: negative) 796,256,399.85 953,288,367.31
Investment loss (gains: negative) -936,006,397.44 -4,216,806,949.38
Decrease in deferred income tax assets
-465,158,595.63 480,269,955.17
(gains: negative)
Increase in deferred income tax
12,641,355.00 6,665,936.98
liabilities (“-” means decrease)
Decrease in inventories (gains:
-509,708,316.12 215,494,199.22
negative)
Decrease in accounts receivable
generated from operating activities 1,536,953,154.05 316,775,883.03
(gains: negative)
Increase in accounts payable used in
-1,048,804,193.14 206,077,002.77
operating activities (decrease: negative)
Others -29,108,950.31 -261,353,501.33
Net cash flow from operating
-528,303,041.83 808,756,394.11
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 5,461,912,010.90 5,968,347,219.03
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
268
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Amount incurred in this year Amount incurred last year
equivalents
Net increase in cash and cash equivalents -506,435,208.13 1,670,291,105.79
（3） Net Cash Paid for Acquisition of Subsidiaries this Year
Item Amount of current year
Cash or cash equivalents paid in the current period for the business
10,000.00
combination occurring in the current period
Of which: Guangdong Jinsheng Construction Engineering Co., Ltd. 10,000.00
Less: cash and cash equivalents held by subsidiaries on the purchase date 10,000.00
Of which: Guangdong Jinsheng Construction Engineering Co., Ltd. 10,000.00
Add: Cash or cash equivalents paid in the Reporting Period for the business
combination occuring in the prior period
Net cash paid for acquisition of subsidiaries
（4） Net Cash Receive from Disposal of the Subsidiaries
Item Amount of current year
Cash or cash equivalents received in the Reporting Period from disposal of
302,280,000.00
subsidiaries in the Current Period
Of which: Sichuan Chengrui Real Estate Co., Ltd. 27,280,000.00
Xi’an Huasheng Jiacheng Real Estate Co., Ltd. 220,000,000.00
Konka Industrial Development (Wuhan) Co., Ltd. 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 Real Estate Co., Ltd. 1,845,348.16
Xi’an Huasheng Jiacheng Real Estate Co., Ltd. 8,334.26
Konka Industrial Development (Wuhan) Co., Ltd. 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 5,461,912,010.90 5,968,347,219.03
Including: Cash on hand 14.78 363.22
Bank deposit on demand 5,461,911,996.12 5,968,346,855.81
269
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Ending balance of cash and cash
5,461,912,010.90 5,968,347,219.03
equivalents
64. 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.
65. Assets with Restricted Ownership or Right to Use
Item Ending carring balance Reason for restriction
Among them, RMB435,167,024.52 is
the margin deposit, which is pledged for
borrowing money or issuing bank
acceptance bills; RMB305,405.41 for
Monetary capital 526,183,479.81 financial supervision account
funds; RMB69,800,000.00 is time
deposit that cannot be withdrawn in
advance; RMB20,911,049.88 is
restricted due to other reasons.
Notes receivable 504,958,051.41 Pledge for making out an invoice
Affected by the case of the minority
shareholder of the subsidiary, the
Stock 49,679,547.48
inventory was wrongly seized, and the
company did not give up the claim.
Investment property 104,066,818.20 Mortgage loan
Mortgage for making out an invoice,
Fixed assets 1,437,778,232.95 finance lease mortgage, mortgage loan,
original shareholder guarantee mortgage
Mortgage loan, financing lease
Intangible assets 512,162,337.46 mortgage, original shareholder guarantee
mortgage
Construction in progress 229,757,971.08 Finance lease mortgage
Total 3,364,586,438.39
66. Foreign Currency Monetary Items
（1） Foreign Currency Monetary Items
270
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance of Ending balance in
Exchange rate
foreign currencies RMB
Monetary Assets
Of which: USD 106,315,046.38 6.96460 740,441,772.02
EUR 2,726,066.73 7.42290 20,235,320.73
EGP 68,434,211.39 0.28134 19,253,281.03
GBP 1.32 8.39410 11.08
HKD 11,827,196.41 0.89327 10,564,879.74
CAD 6.96 5.13850 35.76
PLN 3,860,748.89 1.58781 6,130,118.91
Accounts Receivable
Of which: USD 86,909,542.13 6.96460 605,290,197.12
EUR 1,634,533.25 7.42290 12,132,976.86
EGP 17,377,975.23 0.28134 4,889,119.55
HKD 58,598,699.43 0.89327 52,344,460.24
AUD 49,764.00 4.71380 234,577.54
Other Receivables
Of which: USD 111,545,094.65 6.96460 776,866,966.20
EGP 134,051.34 0.28134 37,714.00
HKD 1,693,608.98 0.89327 1,512,850.09
JPY 21,400,000.00 0.05236 1,120,461.20
Short-term borrowings
Of which: USD 15,090,462.34 6.96460 105,099,034.01
Accounts payable
Of which: USD 24,084,328.20 6.96460 167,737,712.18
EUR 100,199.23 7.42290 743,768.86
EGP 21,623,757.13 0.28134 6,083,627.83
GBP 4,419.42 8.39410 37,097.05
HKD 39,282,168.35 0.89327 35,089,582.52
Other payables
Of which: USD 205,546.18 6.96460 1,431,546.93
EUR 2,782,163.76 7.42290 20,651,723.37
EGP 115,585.15 0.28134 32,518.73
GBP 4,419.42 8.39410 37,097.05
271
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Item Ending balance of Ending balance in
Exchange rate
foreign currencies RMB
HKD 19,660,731.61 0.89327 17,562,341.73
Interest payable
Of which: USD 10,875.01 6.96460 75,740.09
（2） Notes to Overseas Entities
The significant overseas entities include Hong Kong Konka, Konka Electrical Appliances
International Trading, 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.
67. Government Subsidies
（1） Basic Information on Government Subsidy
Amount recorded in
Project Amount Listed items the current profit or
loss
Industrial support funds to
285,000,000.00 Other income 285,000,000.00
Shaanxi Konka
Industrial support funds to
135,351,711.98 Other income 135,351,711.98
Sichuan Konka
Industrial support funds to
88,160,000.00 Other income 88,160,000.00
Xi’an
Industrial support funds to
60,000,000.00 Other income 60,000,000.00
Jiangxi Industrial Park
Industrial support funds to
50,000,000.00 Other income 50,000,000.00
Zhejiang
Industrial support funds to
45,000,000.00 Other income 45,000,000.00
Songyang
Industrial support funds to
20,000,000.00 Other income 20,000,000.00
North China
Industrial support funds to
12,000,000.00 Other income 12,000,000.00
Suining
Other income/de
Others 329,271,544.07 175,890,725.16
ferred income, et
272
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount recorded in
Project Amount Listed items the current profit or
loss
c.
Total 1,024,783,256.05 871,402,437.14
（2） Return of Government Subsidy
No such cases in the Reporting Period.
VII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
（1） Business Combination Not under the Same Control in the Reporting Period
Income
of
acquir
Recognit ee Net profits of
Time and Cost of
Propor Way to ion basis from acquiree from
Name of place of gaining Purchase
tion of gain the of the the purchase
acquiree gaining the equity date
equity equity purchas purcha date to period-
the equity (RMB)
e date se date end (RMB)
to
period-
end
Sichuan
Hongxinc
hen Real Cash Actual
4 July 4 July
Estate 8,000.00 80.00 -12,424,633.57
2022 purchase 2022 control
Develop
ment Co.,
Ltd.
Shenzhen
Konka
Digital
Technolo
gy
Develop
ment Co.,
Ltd.
19 Cash 19 Actual
(Formerl
September 10,000.00 100.00 September 4.95
y known purchase control
2022 2022
as
Shenzhen
Jinsheng
Construct
ion
Engineeri
ng Co.,
Ltd.)
273
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
（2） Combination Cost and Goodwill
Sichuan Shenzhen Konka
Hongxinchen Real Digital
Item Estate Technology
Development Co., Development Co.,
Ltd. Ltd.
--Cash 8,000.00 10,000.00
Total combination cost 8,000.00 10,000.00
Less: fair value of identifiable net assets acquired 8,000.00 10,000.00
The amount of goodwill/combined cost less than the
fair value share of identifiable net assets obtained
Note: The fair value of combination cost shall be determined based on the evaluatin result of
appraisal agencies.
（3） The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Sichuan Hongxinchen Real Shenzhen Konka Digital
Estate Development Co., Technology Development
Ltd. Co., Ltd.
Item
Carrying Fair value Carrying
Fair value
value on on value on
on purchase
purchase purchase purchase
date
date date date
Assets:
Monetary assets 10,000.00 10,000.00 10,000.00 10,000.00
Net assets 10,000.00 10,000.00 10,000.00 10,000.00
Less: Non-controlling interests 2,000.00
Net assets acquired 8,000.00 10,000.00
Note: ① The fair value of identifiable assets or liabilities of the merged subsidiary Sichuan
Hongxinchen Company was evaluated by Beijing Zhongtianhe Asset Evaluation Co., Ltd. and an
asset evaluation report (ZTH [222] Ping Zi No. 90065) was issued on June 30, 2022. According to
the asset based approach, the appraisal value of all shareholders' equity of Sichuan Hongxinchen
Company on the benchmark date of June 15, 2022 was RMB 10000.
② The fair value of identifiable assets or liabilities of the merged subsidiary, Digital
Technology Company, was assessed by Shenzhen Pengxin Asset Appraisal Land Real Estate
Appraisal Co., Ltd. and an asset evaluation report was issued on August 3, 2022. According to the
asset based method, the total equity of shareholders of Digital Technology Company was assessed at
274
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
RMB 10000 on the benchmark date of May 31, 2022.
275
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
2. Disposal of subsidiary
The differences of
enjoyed net assets
share of the subsidiary
Equity
Method of in corresponding
The equity disposal Time of losing Recognition basis for the time of
Name equity consolidated
disposal price proportio control losing control power
disposal statements of the
n (%)
disposal price and the
disposal investment
(RMB’0,000)
Wuhan The rights and obligations related to
Industrial 5,500.00 55.00 Transfer 28 June 2022 the underlying equity have been 4,865.34
Development transferred
Xi'an The rights and obligations related to
Huasheng 22,000.00 100.00 Transfer 28 June 2022 the underlying equity have been 12,128.87
transferred
Sichuan The rights and obligations related to
Chengrui 2,728.00 31.00 Transfer 31 March 2022 the underlying equity have been 2,124.42
transferred
(continued)
Residual Amount of other
Carrying value of Recognition method
equity Fair value of comprehensive income
residual equity Gains or losses from re- and main assumption
proportion residual equity on related to former
on the date of measurement of of fair value of
Name on the date the date of losing subsidiaries
losing control residual equity at fair residual equity on the
of losing control power transferred into
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)
Wuhan 45.00 519.27 4,500.00 3,980.73 Evaluated price
Industrial
276
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Residual Amount of other
Carrying value of Recognition method
equity Fair value of comprehensive income
residual equity Gains or losses from re- and main assumption
proportion residual equity on related to former
on the date of measurement of of fair value of
Name on the date the date of losing subsidiaries
losing control residual equity at fair residual equity on the
of losing control power transferred into
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)
Development
Xi'an Huasheng Evaluated price
Sichuan
49.00 954.77 4,312.00 3,357.23 Evaluated price
Chengrui
277
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
3. Change of merger scope for other reasons
（1）Subsidiaries Established by the Company in the Reporting Period
Time and place
Shareholding
Name Registered capital of obtaining Way of gaining
percentage (%)
control power
Jiangxi Konka High-tech Newly
5,000.00 100.00 27 April 2022
Park established
Shangrao Konka Electronic Newly
3,000.00 100.00 27 April 2022
Technology Innovation established
Guizhou Konka New Newly
10,000.00 98.00 11 May 2022
Energy established
Newly
Zhejiang Konka Electronic 3,000.00 100.00 20 June 2022
established
Zhejiang Konka Newly
3,000.00 100.00 20 June 2022
Technology Industry established
Newly
Xi'an Konka Intelligent 500.00 51.00 22 July 2022
established
Newly
Xi'an Konka Network 5,000.00 100.00 1 August 2022
established
Xi'an Kanghong Newly
3,000.00 100.00 1 August 2022
Technology Industry
established
Xi'an Konka Intelligent Newly
5,000.00 100.00 1 August 2022
Technology
established
Chongqing Fangbing Real Newly
2,000.00 80.00 19 August 2022
Estate
established
Chongqing Konka Low 30 September Newly
1,500.00 55.00
Carbon 2022
established
Newly
Kanghong Xintong 10,000.00 95.09 21 October 2022
established
Songyang Industry Newly
1,500.00 51.00 26 October 2022
Operation
established
Newly
Kangyan Technology 1,000.00 100.00 28 October 2022
established
Konka Photovoltaic Newly
15,000.00 60.00 9 October 2022
Technology
established
Songyang Konka Intelligent 3,000.00 100.00 26 October 2022 Newly
278
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Time and place
Shareholding
Name Registered capital of obtaining Way of gaining
percentage (%)
control power
established
Newly
Konka North China 3,000.00 100.00 10 October 2022
established
Newly
Zhongshan Kanghong 100.00 51.00 14 October 2022
established
（2）Cancellation of subsidiaries in the current year
Shareholding Liquidation
Name Registered capital
percentage (%) completion time
Shanghai Xinfeng 1,066.40 51.00 10 February 2022
Yantai Laikang 1,000.00 51.00 4 August 2022
Jiangxi Konka
10,000.00 70.00 25 May 2022
Industrial Park
Ruichang Kangrui Real
1,000.00 70.00 25 May 2022
Estate
Yijiakang Intelligent 2,000.00 100.00 9 December 2022
Guizhou Kangkai
1,000.00 51.00 29 December 2022
Material
（3）Others
① The Company’s subsidiary Hefei KONSEMI introduced strategic investors and increased the
capital, which caused the decrease of the Company’s shareholding proportion to 34.459459% and
transfer of control power. And it will no longer be included into the consolidation scope.
279
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
VIII. Equity in Other Entities
1. Equity in Subsidiary
（1） Subsidiaries
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
1 Guangdong, Guangdong, Enterprise management consulting, incubation Establishment
Konka Ventures 51
Shenzhen Shenzhen management, housing leasing, etc. or investment
2 Other professional consultation and Establishment
Yantai Konka Shandong, Yantai Shandong, Yantai 51
investigation or investment
3 Establishment
Chengdu Anren Sichuan, Chengdu Sichuan, Chengdu Enterprise incubation management 51
or investment
4 Establishment
Konka Enterprise Service Guizhou, Guiyang Guizhou, Guiyang Enterprise management consulting 51
or investment
5 Establishment
Yibin Konka Incubator Sichuan, Yibin Sichuan, Yibin Commercial services 51
or investment
6 Establishment
Anhui Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 78
or investment
7 Establishment
Kangzhi Trade Anhui, Chuzhou Anhui, Chuzhou Wholesale 78
or investment
8 Guangdong, Guangdong, Establishment
Konka Factoring Insurance agents (non-bank finance) 100
Shenzhen Shenzhen or investment
9 Guangdong, Guangdong, Establishment
Konka Unifortune Trade and services 51
Shenzhen Shenzhen or investment
10 Establishment
Jiali International China, Hong Kong China, Hong Kong Trade and services 51
or investment
11 Guangdong, Guangdong, Establishment
Wankaida Software development 100
Shenzhen Shenzhen or investment
280
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
12 Guangdong, Guangdong, Establishment
Dongguan Konka Manufacturing industry 75 25
Dongguan Dongguan or investment
13 Establishment
Suining Konka Smart Sichuan, Suining Sichuan, Suining Wholesale 100
or investment
14 Establishment
Konka Europe Germany, Frankfurt Germany, Frankfurt International trade 100
or investment
15 Telecommunication Guangdong, Guangdong, Establishment
Manufacturing industry 75 25
Technology Shenzhen Shenzhen or investment
16 Establishment
Konka Mobility China, Hong Kong China, Hong Kong Commercial 100
or investment
17 Guangdong, Guangdong, Establishment
Mobile Interconnection Commercial 100
Shenzhen Shenzhen or investment
18 Establishment
Sichuan Konka Sichuan, Yibin Sichuan, Yibin Manufacturing industry 100
or investment
19 Establishment
Yibin Smart Sichuan, Yibin Sichuan, Yibin Manufacturing industry 100
or investment
20 Establishment
Anhui Tongchuang Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 100
or investment
21 Establishment
Anhui Electrical Appliance Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry 51
or investment
22 Establishment
Frestec Refrigeration Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51
or investment
23 Establishment
Frestec Smart Home Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51
or investment
24 Establishment
Frestec Electrical Appliances Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51
or investment
25 Establishment
Frestec Household Appliances Henan, Xinxiang Henan, Xinxiang Manufacturing industry 51
or investment
26 Jiangsu Konka Smart Jiangsu, Changzhou Jiangsu, Changzhou Manufacturing 51 Establishment
281
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
or investment
27 Establishment
Kangjiatong Sichuan, Yibin Sichuan, Yibin Trade and services 100
or investment
28 Guangdong, Guangdong, Establishment
Pengrun Technology Trade and services 51
Shenzhen Shenzhen or investment
29 Establishment
Jiaxin Technology China, Hong Kong China, Hong Kong Trade and services 51
or investment
30 Establishment
Beijing Konka Electronic Beijing Beijing Sale of home appliance 100
or investment
31 Tianjin Pilot Free Tianjin Pilot Free Establishment
Konka Leasing Service industry 100
Trade Zone Trade Zone or investment
32 Guangdong, Guangdong, Establishment
Konka Circuit Manufacturing industry 100
Shenzhen Shenzhen or investment
33 Establishment
Boluo Precision Guangdong, Boluo Guangdong, Boluo Manufacturing industry 100
or investment
34 Establishment
Boluo Konka Guangdong, Boluo Guangdong, Boluo Manufacturing industry 100
or investment
35 Establishment
Hong Kong Konka China, Hong Kong China, Hong Kong International trade 100
or investment
36 Establishment
Hongdin Invest China, Hong Kong China, Hong Kong Investment holding 100
or investment
37 Chain Kingdom Memory Establishment
China, Hong Kong China, Hong Kong International trade 51
Technologies or investment
38 Chain Kingdom Memory Guangdong, Guangdong, Establishment
Trade and services 51
Technologies (Shenzhen) Shenzhen Shenzhen or investment
39 Establishment
Hongjet China, Hong Kong China, Hong Kong Trade and services 51
or investment
40 Establishment
Hongdin Trading China, Hong Kong China, Hong Kong International trade 100
or investment
282
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
41 Establishment
Kanghao Technology Egypt, Cairo Egypt, Cairo International trade 67
or investment
42 Establishment
Konka North America America, California America, California International trade 100
or investment
43 Guangdong, Guangdong, Establishment
Konka Investment Capital market services 100
Shenzhen Shenzhen or investment
44 Industrial park development and operation Establishment
Yibin Konka Technology Park Sichuan, Yibin Sichuan, Yibin 100
management or investment
45 Guangdong, Guangdong, Establishment
Konka Capital Capital market services 100
Shenzhen Shenzhen or investment
46 Guangdong, Guangdong, Establishment
Konka Suiyong Business service industry 51
Shenzhen Shenzhen or investment
47 Guangdong, Guangdong, Establishment
Shengxing Industrial Commercial services 51
Shenzhen Shenzhen or investment
48 Guangdong, Guangdong, Establishment
Zhitong Technology Software and information technology services 51
Shenzhen Shenzhen or investment
49 Guangdong, Guangdong, Establishment
Electronics Technology Manufacturing industry 100
Shenzhen Shenzhen or investment
50 Establishment
Anhui Zhilian Anhui, Chuzhou Anhui, Chuzhou e-Commerce 100
or investment
51 Guangdong, Guangdong, Establishment
Youzhihui Software and information technology services 100
Shenzhen Shenzhen or investment
52 Guangdong, Guangdong, Establishment
Xiaojia Technology Retail trade 100
Shenzhen Shenzhen or investment
53 Establishment
Haimen Konka Jiangsu, Nantong Jiangsu, Nantong Trade and service 100
or investment
54 Establishment
Chengdu Konka Smart Sichuan, Chengdu Sichuan, Chengdu Trade and service 100
or investment
55 Chengdu Konka Electronic Sichuan, Chengdu Sichuan, Chengdu Manufacturing industry 100 Establishment
283
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
or investment
56 Zhongshan, Guangdong, Establishment
XingDa HongYe Manufacturing industry 51
Guangdong Zhongshan or investment
57 100 Establishment
Liaoyang Kangshun Smart Liaoyang, Liaoning Liaoyang, Liaoning Wholesale
or investment
58 Liaoyang Kangshun Comprehensive utilization of renewable 100 Establishment
Liaoyang, Liaoning Liaoyang, Liaoning
Renewable resources or investment
59 100 Establishment
Nanjing Konka Jiangsu, Nanjing Jiangsu, Nanjing Wholesale
or investment
60 51 Establishment
Konka Huanjia Dalian, Liaoning Dalian, Liaoning Renewable resources processing trade
or investment
61 51 Establishment
Konka Huanjia (Henan) Henan, Lankao Henan, Lankao Renewable resource processing trade
or investment
62 100 Establishment
Shanghai Konka Shanghai Shanghai Real estate
or investment
63 62.8 Establishment
Yantai Kangjin Shandong, Yantai Shandong, Yantai Real estate
or investment
64 51 Establishment
Jiangxi Konka Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing
or investment
65 51 Establishment
Xinfeng Microcrystalline Jiangxi, Nanchang Jiangxi, Nanchang Manufacturing and processing
or investment
66 Jiangsu Konka Special 51 Establishment
Jiangsu Yancheng Wholesale
Material or investment
67 Guangdong, Guangdong, 100 Establishment
Shenzhen Nianhua Commercial services
Shenzhen Shenzhen or investment
68 Guangdong, Guangdong, 100 Establishment
Shenzhen KONSEMI Semiconductors
Shenzhen Shenzhen or investment
69 100 Establishment
Chongqing Konka Chongqing Chongqing Software and information technology services
or investment
284
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
70 Guangdong, Guangdong, 51 Establishment
Konka Eco-Development Commercial services
Shenzhen Shenzhen or investment
71 Industrial park development and operation 100 Establishment
Suining Konka Industrial Park Sichuan, Suining Sichuan, Suining
management or investment
72 51 Establishment
Konka Ronghe Zhejiang, Jiaxing Zhejiang, Jiaxing Wholesale and retail trade
or investment
73 Suining Electronic 100 Establishment
Sichuan, Suining Sichuan, Suining Commercial services
Technological Innovation or investment
74 Shenzhen Chuangzhi Guangdong, Guangdong, 100 Establishment
Wholesale
Electrical Appliances Shenzhen Shenzhen or investment
75 Kanghong (Yantai) Comprehensive utilization of abandoned 51 Establishment
Shandong, Yantai Shandong, Yantai
Environmental Protection resources or investment
76 Recycling, processing and sales of renewable 51 Establishment
Chongqing Kangxingrui Chongqing Chongqing
resources or investment
77 Chongqing Kangxingrui Recycling, processing and sales of waste 51 Establishment
Chongqing Chongqing
Automobile Recycling resources or investment
78 Chongqing Optoelectronic 75 Establishment
Chongqing Chongqing Research & experiment development
Technology Research Institute or investment
79 Guangdong, Guangdong, Computer, telecommunications and other 100 Establishment
Kowin Memory (Shenzhen)
Shenzhen Shenzhen electronic equipment manufacturing or investment
80 Computer, telecommunications and other 100 Establishment
Konka Xinyun Semiconductor Yancheng, Jiangsu Yancheng, Jiangsu
electronic equipment manufacturing or investment
81 Jiangkang (Shanghai) 51 Establishment
Shanghai Shanghai Research & experiment development
Technology or investment
82 Ningbo Kanghr Electrical Electrical machinery and equipment 60 Establishment
Zhejiang, Ningbo Zhejiang, Ningbo
Appliance manufacturing or investment
83 Konka Intelligent Guangdong, Guangdong, 51 Establishment
Research & experiment development
Manufacturing Shenzhen Shenzhen or investment
84 Suining Jiarun Property Sichuan, Suining Sichuan, Suining Real estate 100 Establishment
285
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
or investment
85 Ecological protection and environmental 67 Establishment
Yibin Kangrun Yibin, Sichuan Yibin, Sichuan
governance industry or investment
86 100 Establishment
Konka Material Hainan, Haikou Hainan, Haikou Commercial services
or investment
87 Jiangxi High Transparent 51 Establishment
Substrate (formerly known as Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing or investment
“Nano-Grystallized Glass”)
88 Computer, telecommunications and other 100 Establishment
Nantong Hongdin Jiangsu, Nantong Jiangsu, Nantong
electronic equipment manufacturing or investment
89 94.9 Establishment
Chuzhou Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing industry
or investment
90 95 Establishment
Konka Soft Electronic Sichuan, Suining Sichuan, Suining Manufacturing industry
or investment
91 90.1 Establishment
Konka Hongye Electronics Sichuan, Suining Sichuan, Suining Manufacturing industry
or investment
92 Wholesale of computers, software and auxiliary 100 Establishment
Kowin Memory (Hong Kong) Hong Kong Hong Kong
equipment or investment
93 Industrial and Trade Guangdong, Guangdong, 100 Establishment
Wholesale
Technology Shenzhen Shenzhen or investment
94 100 Establishment
Konka Huazhong Hunan, Changsha Hunan, Changsha Business service industry
or investment
95 Ecological protection and environmental 63.65 Establishment
Yibin Kangrun Medical Sichuan, Yibin Sichuan, Yibin
governance services or investment
96 Yibin Kangrun Environmental Ecological protection and environmental 40.87 Establishment
Sichuan, Yibin Sichuan, Yibin
Protection governance services or investment
97 Manufacture of household cleaning and sanitary 51 Establishment
Shaanxi Konka Intelligent Shaanxi, Xi’an Shaanxi, Xi’an
electrical appliances or investment
286
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
98 Chongqing Xinyuan Science and technology promotion and 75 Establishment
Chongqing Chongqing
Semiconductor application services or investment
99 Guangdong, Guangdong, 100 Establishment
Kangxiaojia Digital Software and IT services
Shenzhen Shenzhen or investment
100 Guangdong, Guangdong, 95.09 Establishment
Kanghong Dongsheng Commercial services
Shenzhen Shenzhen or investment
101 Qiannan Miao and Qiannan Miao and 51 Establishment
Guizhou Konka New Material Dong Autonomous Dong Autonomous or investment
Manufacturing and processing
Technology Prefecture, Guizhou Prefecture, Guizhou
Province Province
102 Qiannan Miao and Qiannan Miao and 100 Establishment
Dong Autonomous Dong Autonomous or investment
Guizhou Kanggui Energy Wholesale and retail
Prefecture, Guizhou Prefecture, Guizhou
Province Province
103 100 Establishment
Guangdong Xinwei Lufeng, Guangdong Lufeng, Guangdong Semiconductors
or investment
104 Kangxinrui Renewable Recycling, processing and sales of renewable 51 Establishment
Chongqing Chongqing
Resources resources or investment
105 Qiannan Miao and Qiannan Miao and 70 Establishment
Guizhou Kanggui Material Dong Autonomous Dong Autonomous or investment
Manufacturing and processing
Technology Prefecture, Guizhou Prefecture, Guizhou
Province Province
106 Real estate 51 Establishment
Nantong Kanghai Jiangsu, Nantong Jiangsu, Nantong
or investment
107 Real estate 80 Establishment
Chongqing Kangyiyun Chongqing Chongqing
or investment
108 Jiangxi, Shangrao 100 Establishment
Jiangxi Konka High-tech Park Jiangxi, Shangrao Commercial services
or investment
109 Shangrao Konka Electronic Jiangxi, Shangrao 100 Establishment
Jiangxi, Shangrao Research & experiment development
Technology Innovation or investment
287
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
110 Guizhou, Kaili 98 Establishment
Guizhou Konka New Energy Guizhou, Kaili Manufacture of non-metallic mineral products
or investment
111 Zhejiang, Shaoxing 100 Establishment
Zhejiang Konka Electronic Zhejiang, Shaoxing Research & experiment development
or investment
112 Zhejiang Konka Technology Zhejiang, Shaoxing 51 49 Establishment
Zhejiang, Shaoxing Commercial services
Industry or investment
113 80 Establishment
Sichuan Hongxinchen Sichuan, Chengdu Sichuan, Chengdu Real estate
or investment
114 Wholesale 51 Establishment
Xi'an Konka Intelligent Shaanxi, Xi’an Shaanxi, Xi’an
or investment
115 Computer, telecommunications and other 100 Establishment
Xi'an Konka Network Shaanxi, Xi’an Shaanxi, Xi’an
electronic equipment manufacturing or investment
116 Xi'an Kanghong Technology 40 60 Establishment
Shaanxi, Xi’an Shaanxi, Xi’an Commercial services
Industry or investment
117 Xi'an Konka Intelligent Retail 100 Establishment
Shaanxi, Xi’an Shaanxi, Xi’an
Technology or investment
118 Chongqing Fangbing Real Retail 80 Establishment
Chongqing Chongqing
Estate or investment
119 Chongqing Konka Low Wholesale 55 Establishment
Chongqing Chongqing
Carbon or investment
120 Guangdong, Guangdong, Commercial services 95.09049 Establishment
Kanghong Xintong
Shenzhen Shenzhen or investment
121 51 Establishment
Songyang Industry Operation Zhejiang, Lishui Zhejiang, Lishui Software and information technology services
or investment
122 Guangdong, Guangdong, Computer, telecommunications and other 100 Establishment
Kangyan Technology
Shenzhen Shenzhen electronic equipment manufacturing or investment
123 Konka Photovoltaic Science and technology promotion and 60 Establishment
Zhejiang, Hangzhou Zhejiang, Hangzhou
Technology application services or investment
124 Songyang Konka Intelligent Zhejiang, Lishui Zhejiang, Lishui Wholesale 100 Establishment
288
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shareholding percentage
Main operating (%) Way of
No. Name Registration place Nature of business
place gaining
Directly Indirectly
or investment
125 Electrical machinery and equipment 100 Establishment
Konka North China Tianjin Tianjin
manufacturing or investment
126 Guangdong, Guangdong, Computer, telecommunications and other 51 Establishment
Zhongshan Kanghong
Zhongshan Zhongshan electronic equipment manufacturing or investment
127 Guangdong, Guangdong, Software and information technology services 100 Establishment
Digital Technology
Shenzhen Shenzhen or investment
（2） Significant Non-wholly-owned Subsidiary
Profit or loss
Shareholding attributable to Declaring dividends
Ending balance of
Name proportion of non- minority distributed to minority
minority interests
controlling interests shareholders this shareholders this year
year
Chain Kingdom Memory Technologies
49.00% 2,020,892.76 77,082,196.84
Co., Limited
289
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
（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 liabilities
Chain Kingdom Memory 1,214,833,527.86 2,375,463.55 1,217,208,991.41 1,052,691,278.28 7,207,107.33 1,059,898,385.61
Technologies Co., Limited
(continued)
Opening balance
Name Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Chain Kingdom Memory 1,122,601,899.81 1,496,802.37 1,124,098,702.18 983,206,412.40 983,206,412.40
Technologies Co., Limited
(continued)
Amount incurred in this year
Name Total comprehensive Cash flows from
Revenue Net profit
income operating activities
Chain Kingdom Memory Technologies Co., 8,493,960,721.20 4,124,270.93 4,124,270.93 -69,349,463.30
Limited
(continued)
Amount incurred last year
Name Total comprehensive Cash flows from
Revenue Net profit
income operating activities
290
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred last year
Name Total comprehensive Cash flows from
Revenue Net profit
income operating activities
Chain Kingdom Memory Technologies Co., 9,416,436,242.22 16,707,246.42 12,907,671.17 163,768,485.18
Limited
291
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
2. Equity in Joint Ventures or Associated Enterprises
（1）Significant Joint Ventures or Associated Enterprises
Shareholding Accounting
percentage (%) treatment of the
Main
Registrati Nature of investment to
Name operatin
on place business joint venture or
g place
associated
Directl Indirec
enterprise
y tly
Dongfang Konka
No.1 (Zhuhai) Investment
Private Equity Zhuhai Zhuhai manageme 49.95 Equity method
Investment Fund nt
(LP)
Shenzhen Jielunte Professiona
Technology Co., Shenzhen Shenzhen l 42.79 Equity method
Ltd. machinery
manufactur
（2）Main Financial Information of Significant Associated Enterprise
Ending balance/amount incurred this year
Item Dongfang Konka No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 971,913,521.98 253,227,910.38
Non-current assets 288,320,463.89
Total assets 971,913,521.98 541,548,374.27
Current liabilities 3,340.00 233,990,644.75
Non-current liabilities 74,263,430.52
Total liabilities 3,340.00 308,254,075.27
Equity of non-controlling interests 12,856,913.14
Equity attributable to shareholders of
971,910,181.98 220,437,385.86
the Company as the parent
Net assets shares calculated at the 483,905,786.35 99,748,594.97
shareholding proportion
Adjusted items
- Goodwill
- Internal unrealized profit
- Others
Carrying value of investment to 483,905,786.35 99,748,594.97
associated enterprises
Fair values of equity investments of
joint ventures with quoted prices
292
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Ending balance/amount incurred this year
Item Dongfang Konka No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Revenue 514,976,783.54
Financial expenses -461,885.81 -430,655.59
Income tax expenses
Net profit 16,036,036.59 7,917,120.47
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 16,036,036.59 7,917,120.47
Dividends received from the joint
venture in the current period
(continued)
Opening balance/amount incurred last year
Item Dongfang Konka No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 945,498,650.28 273,102,104.88
Non-current assets 220,186,531.13
Total assets 945,498,650.28 493,288,636.01
Current liabilities 730.00 258,379,870.36
Non-current liabilities 18,381,235.37
Total liabilities 730.00 276,761,105.73
Equity of non-controlling interests 9,047,500.16
Equity attributable to shareholders of
945,497,920.28 207,480,030.12
the Company as the parent
Net assets shares calculated at the
467,638,787.38 94,278,354.91
shareholding proportion
Adjusted items
- Goodwill
- Internal unrealized profit
- Others
Carrying value of investment to
467,638,787.38 94,278,354.91
associated enterprises
Fair values of equity investments of
joint ventures with quoted prices
Revenue 475,403,349.60
Financial expenses -517,521.24 5,058,668.75
Income tax expenses
293
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Opening balance/amount incurred last year
Item Dongfang Konka No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Net profit 45,293,790.73 12,209,183.84
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 45,293,790.73 12,209,183.84
Dividends received from the joint
venture in the current period
（3）Summary Financial Information of Insignificant Joint Ventures or Associated
Enterprises
Ending
Beginning balance/Same
Item balance/Reporting
period of last year
Period
Associated enterprises:
Total carrying value of investment 5,767,578,574.26 3,617,582,425.90
The total of following items according to
the shareholding proportions
--Net profit 93,186,179.48 -32,617,474.82
--Other comprehensive income -2,814,803.62 1,486,737.16
--Total comprehensive income 90,371,375.86 -31,130,737.66
IX. The Risk Related to Financial Instruments
The Company’s main financial instruments include borrowings, accounts receivable, accounts
payable, trading financial assets and liabilities, etc. Please refer to Note VI for detailed descriptions
of various financial instruments. Risks related to these financial instruments, and risk management
policies the Company has adopted to reduce these risks are described as follows. The Company
management manages and monitors the risk exposure in order to ensure the above risks to be
controlled in a limited scope.
1. Various Risk Management Objectives and Policies
The goals of the Company engaged in the risk management is to achieve the proper balance
between the risks and benefits, reduced the negative impact to the Company operating performance
risk to a minimum, maximized the profits of shareholders and other equity investors. Based on the
risk management goal, the basic strategy of the Company's risk management is determine and
294
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 31 December 2022, the Company's assets and
liabilities were mainly the balance in RMB except for the assets or liabilities of a balance in USD as
listed below.
Item Ending balance Opening balance
Monetary Assets 106,315,046.38 104,127,945.47
Accounts Receivable 86,909,542.13 150,964,132.67
Other Receivables 111,545,094.65 97,035,927.80
Other payables 205,546.18
Short-term borrowings 15,090,462.34 89,678,741.45
Accounts payable 24,084,328.20 35,718,564.93
Interest payable 10,875.01 106,816.56
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
295
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 31 December 2022, the balance of such
short-term borrowings was RMB7,579,559,304.97.
(2) Credit Risk
As at 31 December 2022, the maximum credit risk exposure that may cause financial losses to
the Company mainly came from losses generated from the Company's financial assets due to failure
of the other party in a contract to perform its obligations and the financial guarantee undertaken by
the Company, including:
The carrying amount of financial assets recognized in the consolidated balance sheet; for
financial instruments measured at fair value, the book value reflects their risk exposure, but not the
maximum risk exposure, and the maximum risk exposure will change with the change of future fair
value.
In order to reduce credit risk, the Company has set up a group to determine the credit limit,
conduct credit approval, and implement other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition, the Company reviews the recovery of
each single receivable on each balance sheet date to ensure that sufficient bad debt provision is made
for the unrecoverable amount. Therefore, the Company's management believes that the Company's
credit risk has been greatly reduced.
The Company's working capital is deposited in banks with high credit rating, so the credit risk
of working capital is low.
The Company has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable, the
Company has no other major credit concentration risk. For the financial assets of the Company that
have been individually impaired, please refer to 4. Accounts Receivable and 7. Other Receivables in
Note VI.
(3) Liquidity Risk
Liquidity risk refers to the risk that the Company is unable to fulfill its financial obligations on
the due date. The Company manages liquidity risk in the method of ensuring that there is 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
296
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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:
297
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount as at 31 December 2022:
Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets
Monetary Assets 5,988,095,490.71 5,988,095,490.71
Trading Financial Assets
Notes Receivable 1,059,737,243.54 1,059,737,243.54
Accounts Receivable 1,633,221,269.04 145,341,434.46 258,111,844.72 60,288.00 2,036,734,836.22
Other Receivables 524,599,485.31 495,631,494.36 421,877,628.71 16,237.20 1,442,124,845.58
Long-term Receivables 800,400.00 800,400.00
Other Current Assets 2,038,841,225.83 2,038,841,225.83
Financial liabilities
Short-term borrowings 7,579,559,304.97 7,579,559,304.97
Notes payable 1,054,573,822.04 1,054,573,822.04
Accounts payable 2,330,698,958.02 155,636,729.60 170,176,259.09 3,434,616.22 2,659,946,562.93
Other payables 1,422,927,166.13 170,293,026.70 275,570,243.86 26,920,936.65 1,895,711,373.34
Payroll payable 348,608,204.05 348,608,204.05
Non-current liabilities due
409,220,030.69 409,220,030.69
within one year
Long-term borrowings 6,811,464,725.39 1,655,495,707.05 439,970,970.45 8,906,931,402.89
Bonds Payable 2,368,040,974.94 2,424,351,069.19 4,792,392,044.13
Long-term payables 7,964,127.18 7,964,127.18
298
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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:
2022
Exchange rate
Item
fluctuations Impact on shareholders'
Impact on net profit
equity
Appreciation of 1%
USD 15,551,310.88 11,270,323.99
against RMB
Depreciation of 1%
USD -15,551,310.88 -11,270,323.99
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:
2022
Interest rate
Item Impact on shareholders'
fluctuations Impact on net profit
equity
299
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Borrowings at
floating interest Up 0.5% 28,813,464.20 28,058,882.34
rates
Borrowings at
floating interest Down 0.5% -28,813,464.20 -28,058,882.34
rates
300
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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 237,187,228.44 237,187,228.44
(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 2,639,662,273.32 2,639,662,273.32
The total amount of assets consistently measured at fair 2,663,503,610.48 2,900,690,838.92
237,187,228.44
value
Total amount of liabilities at fair value
II. Inconsistent fair value measurement
Total assets of inconsistent fair value measurement
301
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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
Total liabilities of inconsistent fair value measurement
302
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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
Shareholding Voting right
Registrat Nature of Registere
Name ratio to the ratio to the
ion place business d capital
Company (%) Company (%)
Tourism, real
estate, RMB12
OCT Group Co. Ltd. Shenzhen 29.999997 29.999997
electronics billion
industry
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
303
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Controlling Increase in this Decrease in
Opening balance Ending balance
shareholders year this year
OCT Group Co. Ltd. 12,000,000,000.00 12,000,000,000.00
（3） Controlling Shareholders’ Shares or Equity and their Changes
Shareholding amount Shareholding percentage (%)
Controlling
Opening Ending
shareholders Ending balance Opening percentage
balance 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
Anhui Kaikai Shijie E-commerce Co., Ltd. Associate
Anhui Kangfu New Energy Co., Ltd. Associate
Anhui Kangta Supply Chain Management Co.,
Associate
Ltd.
Chuzhou Kangxin Health Industry Development
Associate
Co., Ltd.
Chutian Dragon Co., Ltd. Associate
Orient Excellent (Zhuhai) Asset Management
Associate
Co., Ltd.
Dongguan Kangjia New Materials Technology
Associate
Co., Ltd.
Dongguan Kangzhihui Electronics Co., Ltd. Associate
Dongguan Guankang Hongyu Investment Co.,
Associate
Ltd.
Feidi Technology (Shenzhen) Co., Ltd. Associate
Guangdong Kangyuan Semiconductor Co. , Ltd. Associate
Hefei KONSEMI Storage Technology Co., Ltd. Associate
Henan Kangfei Intelligent Electrical Appliances Associate
304
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Name Relationship with the Company
Co., Ltd.
Kangkong Venture Capital (Shenzhen) Co., Ltd. Associate
Nantong Kangjian Technology Industrial Park
Associate
Operations and Management Co., Ltd.
Puchuang Jiakang Technology Co, Ltd. Associate
Shandong Kangfei Intelligent Electrical
Associate
Appliances Co., Ltd.
Shenzhen Aimijiakang Technology Co., Ltd. Associate
Shenzhen Jielunte Technology Co., Ltd. Associate
Shenzhen Kanghongxing Smart Technology Co.,
Associate
Ltd.
Shenzhen Kopen Digital Technology Co., Ltd. Associate
Shenzhen Konda E-display Co., Ltd. Associate
Shenzhen Kangying Semiconductor Technology
Associate
Co., Ltd.
Shenzhen Morsemi Semiconductor Technology
Associate
Co., Ltd.
Shenzhen Konka Jiapin Intelligent Electrical
Associate
Apparatus Co., Ltd.
Shenzhen Kangxi Technology Innovation
Associate
Development Co., Ltd.
Shenzhen RF-Llink Technology Co., Ltd. Associate
Shenzhen Yaode Technology Co., Ltd. Associate
Shenzhen Zhongbing Konka Technology Co.,
Associate
Ltd.
Sichuan Chengrui Real Estate Co., Ltd. Associate
Sichuan Huayi Jiakang Technology Co., Ltd. Associate
KK Smartech Limited Associate
Yantai Kangyun Industrial Development Co.,
Associate
Ltd.
Yancheng Kangyan Information Industry
Associate
Investment Partnership (Limited Partnership)
Yibin Kanghui Electronic Information Industry
Equity Investment Partnership (limited Associate
partnership)
E3info (Hainan) Technology Co., Ltd. Associate
Shandong Econ Technology Co., Ltd. Associate
305
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Name Relationship with the Company
Chongqing Kangjian Photoelectric Technology
Associate
Co., Ltd.
Chongqing Kangxin Equity Investment Fund
Associate
Partnership (limited partnership)
Chongqing Kangyiqing Technology Co., Ltd. Associate
Chongqing Qingjia Electronics Co., Ltd. Associate
4. Information on Other Related Parties
Name Relationship with the Company
HOHOELECTRICAL&FURNITURECO.,LI
Minority shareholder of subsidiary
MITED
Beijing Xuri Shengxing Technology Co., Ltd. Minority shareholder of subsidiary
Chuzhou Hanshang Electric Appliance Co.,
Minority shareholder of subsidiary
Ltd.
Korea Electric Group Co., Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Huanjia Group Co., Ltd. Minority shareholder of subsidiary
Shenzhen New Journey Energy Conservation
Minority shareholder of subsidiary
and Environmental Protection Service Co., Ltd.
Central Enterprises in poverty-stricken
areas(Jiangxi)Industrial Investment Funds Minority shareholder of subsidiary
Partnership(L.P.)
Chongqing Liangshan Industrial Investment
Minority shareholder of subsidiary
Co., Ltd.
The company controlled by the ultimate
Jiangxi Meiji Enterprise Co., Ltd. controller of the minority shareholders of the
subsidiary
Dai Rongxing Close family members of minority shareholders
Zhejiang Donghong Asset Management
Subsidiary of associated enterprise
Co., Ltd.
AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise
Yantai Kangyue Investment Co., Ltd. Subsidiary of associated enterprise
Chongqing Lanlv Moma Real Estate
Subsidiary of associated enterprise
Development Co., Ltd.
5. Related-party Transactions
1. Related-party transactions of purchase and sale of goods, provision and acceptance of
306
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
services
(1) Purchasing goods/receiving services
Amount incurred Amount incurred
Related party Content
in this year last year
Chuzhou Hanshang Electric
Purchasing goods 361,343,092.66 677,309,389.23
Appliance Co., Ltd.
Puchuang Jiakang Technology Co,
Purchasing goods 346,728,064.51 240,633,703.30
Ltd.
KK Smartech Limited Purchasing goods 45,029,492.58 10,780,582.86
OCT Group Co., Ltd. and its Purchase of goods
44,307,009.34 55,547,081.78
subsidiaries and associates and services
Shenzhen Kangying Semiconductor
Technology Co., Ltd. and its Purchasing goods 41,158,319.46 8,227,826.34
subsidiaries
Korea Electric Group Co., Ltd. and
Purchasing goods 35,518,472.38 55,836,238.79
its subsidiaries
Shenzhen Jielunte Technology Co.,
Ltd. and its subsidiaries as well as Purchasing goods 30,219,079.03 72,163,184.57
its associated enterprises
Shenzhen Konda E-display Co., Ltd. Purchasing goods 28,026,932.54 46,107,911.06
Dongguan Konka Smart Electronic Purchase of goods
22,735,162.01 23,557,646.94
Technology Co., Ltd. and services
HOHOELECTRICAL&FURNITU
Purchasing goods 19,585,193.41 22,211,733.88
RECO.,LIMITED
Dongguan Kangjia New Material
Technology Co., Ltd. (formerly
Purchasing goods 12,289,697.95
known as Dongguan Konka Packing
Material Co., Ltd.)
Anhui Kaikai Shijie E-commerce
Purchasing goods 10,162,140.56 12,374,579.16
Co., Ltd. and its subsidiaries
Shenzhen Kanghongxing Intelligent
Purchasing goods 8,531,405.75
Technology Co., Ltd.
Chongqing Ruiyin Renewable
Purchase of goods
Resources Co., Ltd. and its 2,272,578,727.02
and services
subsidiaries
Orient Excellent (Zhuhai) Asset
Purchasing services 8,421,613.00
Management Co., Ltd.
Purchase of goods
Subtotal of other related parties 7,972,143.19 4,336,673.63
and services
(2) Information of sales of goods and provision of labor service
Amount incurred Amount incurred
Related party Content
in this year last year
Sales of goods and
Anhui Kaikai Shijie E-commerce
provision of labor 189,148,548.38 103,201,296.73
Co., Ltd. and its subsidiaries
service
307
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount incurred Amount incurred
Related party Content
in this year last year
Sales of goods and
OCT Group Co., Ltd. and its
provision of labor 178,677,010.72 144,139,658.68
subsidiaries and associates
service
Sales of goods and
Korea Electric Group Co., Ltd. and
provision of labor 161,244,155.22 279,074,296.50
its subsidiaries
service
Shenzhen Jielunte Technology Co., Sales of goods and
Ltd. and its subsidiaries as well as provision of labor 157,730,471.80 52,708,375.55
its associated enterprises service
Sales of goods and
Chuzhou Hanshang Electric
provision of labor 107,734,901.38 192,124,416.17
Appliance Co., Ltd.
service
Shandong Kangfei Intelligent
Sales of goods 52,139,839.35 63,427,905.20
Electrical Appliances Co., Ltd.
Hefei KONSEMI Storage
Sales of goods 45,466,225.40
Technology Co., Ltd.
Shenzhen Aimijiakang Technology
Sales of goods and
Co., Ltd. (formerly known as
provision of labor 42,265,781.54 28,278,036.50
Sichuan Aimijiakang Technology
service
Co., Ltd.)
Sales of goods and
Shenzhen Konda E-display Co., Ltd.
provision of labor 39,405,582.28 43,781,944.59
And its subsidiaries
service
Henan Kangfei Intelligent Electrical
Sales of goods 27,910,005.34 49,621,167.82
Appliances Co., Ltd.
HOHOELECTRICAL&FURNITU
Sales of goods 21,684,854.42 49,653,058.20
RECO.,LIMITED
Sales of goods and
Dongguan Konka Smart Electronic
provision of labor 18,795,403.33 28,080,693.48
Technology Co., Ltd.
service
Nantong Kangjian Technology
Industrial Park Operations and Render labor service 14,150,943.39
Management Co., Ltd.
Shenzhen Kangying Semiconductor Sales of goods and
Technology Co., Ltd. and its provision of labor 9,193,457.83 2,680,541.63
subsidiaries service
Sales of goods and
E3info (Hainan) Technology Co.,
provision of labor 7,676,760.48 9,540,876.11
Ltd. and its subsidiaries
service
Yancheng Kangyan Information
Industry Investment Partnership Render labor service 3,539,336.04 1,449,574.89
(Limited Partnership)
Sales of goods and
Sichuan Huayi Jiakang Technology
provision of labor 1,095,847.95 70,997,038.78
Co., Ltd.
service
Yantai Kangyun Industrial Sales of goods
Development Co., Ltd. and its 21,944.26 5,660,377.20
subsidiaries
Sales of goods and
Subtotal of other related parties provision of labor 11,450,833.50 11,914,248.40
service
308
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
2. Information on Related-party Lease
Lease situation
Lease fee Lease fee
Category of
Name of lessor Name of lessee recognized this recognized last
leased assets
year year
Commercial
Konka Ventures
OCT Group Co., Ltd. residences
Development 25,078,697.16 21,435,068.58
and its subsidiaries and office
(Shenzhen) Co., Ltd.
buildings
Commercial
OCT Group Co., Ltd. Konka Group Co., residences
1,819,825.44 1,571,011.20
and its subsidiaries Ltd. and office
buildings
3. Information on Related-party Guarantee
（1）The Company was guarantor
Contracted Actual Executio
guarantee guarantee Cu n
Secured party amount amount rre Start date End date accompli
(RMB10,0 (RMB10,0 ncy shed or
00) 00) not
CN 28 October 27 October
Anhui Tongchuang 3,000.00 3,000.00 No
Y 2021 2022
CN
Anhui Tongchuang 5,000.00 14 April 2022 14 April 2023 No
Y
CN
Anhui Tongchuang 3,000.00 3,000.00 2 June 2022 1 June 2023 No
Y
CN
Anhui Tongchuang 5,000.00 5 July 2022 4 July 2023 No
Y
CN 19 October 19 October
Anhui Tongchuang 10,000.00 7,000.00 No
Y 2022 2023
Electronics CN 24 November 10 January
8,500.00 5,941.83 No
Technology Y 2022 2024
Electronics CN 10 October
50,000.00 50,000.00 21 July 2023 No
Technology Y 2022
CN 22 March 21 March
Sichuan Konka 4,000.00 4,000.00 No
Y 2022 2023
Boluo Precision 2,480.11 575.00 CN 19 August 19 August No
309
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Contracted Actual Executio
guarantee guarantee Cu n
Secured party amount amount rre Start date End date accompli
(RMB10,0 (RMB10,0 ncy shed or
00) 00) not
Y 2020 2023
CN 25 August 24 August
Boluo Precision 3,000.00 3,000.00 No
Y 2022 2023
CN
Boluo Precision 12,449.00 2,761.58 6 July 2021 5 July 2023 No
Y
CN 9 February 5 September
Hong Kong Konka 10,000.00 10,098.67 No
Y 2022 2022
CN 18 March 17 March
Dongguan Konka 5,000.00 5,000.00 No
Y 2022 2023
CN
Dongguan Konka 80,000.00 29,638.70 23 June 2021 7 May 2031 No
Y
Telecommunication CN
7,500.00 5,000.00 20 May 2022 20 May 2023 No
Technology Y
CN 30 November
Konka Circuit 20,000.00 7,864.23 24 May 2021 No
Y 2024
Mobile CN 11 August 11 August
7,000.00 4,000.00 No
Interconnection Y 2022 2023
Konka Xinyun CN
6,000.00 1,000.00 26 May 2022 25 May 2024 No
Semiconductor Y
Konka Xinyun CN
20,000.00 7,127.66 12 July 2021 11 July 2022 No
Semiconductor Y
Liaoyang Kangshun CN 19 January 18 January
5,000.00 3,000.00 No
Smart Y 2022 2023
CN 31 March 30 March
Yibin Smart 980.00 980.00 No
Y 2022 2023
CN 13 December 13 December
Chongqing Konka 38,000.00 4,635.17 No
Y 2022 2037
CN 23 February 23 February
XingDa HongYe 5,800.00 4,961.32 No
Y 2022 2024
CN 25 December 25 December
XingDa HongYe 2,000.00 699.29 No
Y 2020 2023
CN 31 August
XingDa HongYe 750.00 259.41 31 May 2021 No
Y 2023
CN 6 November 1 December
Jiangxi Konka 10,000.00 3,000.00 No
Y 2020 2023
CN
Jiangxi Konka 6,000.00 5,000.00 26 June 2022 25 June 2023 No
Y
CN 10 March
Jiangxi Konka 990.00 990.00 9 March 2024 No
Y 2022
CN 29 September 29 September
Jiangxi Konka 10,000.00 3,455.71 No
Y 2020 2023
310
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Contracted Actual Executio
guarantee guarantee Cu n
Secured party amount amount rre Start date End date accompli
(RMB10,0 (RMB10,0 ncy shed or
00) 00) not
CN 21 December 31 December
Jiangxi Konka 5,000.00 4,400.00 No
Y 2020 2023
CN 30 December 30 December
Jiangxi Konka 1,000.00 343.01 No
Y 2020 2023
Xinfeng CN
5,000.00 887.79 19 May 2020 19 May 2023 No
Microcrystalline Y
Xinfeng CN 8 December 8 December
2,100.00 725.62 No
Microcrystalline Y 2020 2023
Xinfeng CN 29 December 28 December
7,200.00 No
Microcrystalline Y 2022 2023
Xinfeng CN
7,200.00 6,000.00 29 June 2022 28 June 2023 No
Microcrystalline Y
Jiangxi High
Transparent
Substrate (formerly CN 8 January 8 January
5,000.00 448.87 No
known as “Nano- Y 2020 2023
Grystallized
Glass”)
Jiangxi High
Transparent
Substrate (formerly CN 10 March
990.00 990.00 9 March 2024 No
known as “Nano- Y 2022
Grystallized
Glass”)
Jiangxi High
Transparent
Substrate (formerly CN
6,000.00 1,479.81 14 July 2020 14 July 2023 No
known as “Nano- Y
Grystallized
Glass”)
Ningbo Kanghr
CN 12 August
Electrical 6,000.00 1,200.00 27 July 2023 No
Y 2021
Appliance
Ningbo Kanghr
CN
Electrical 6,000.00 1,800.00 12 July 2022 11 July 2023 No
Y
Appliance
CN 13 November 31 December
Yibin Kangrun 10,000.00 10,000.00 No
Y 2020 2024
CN 13 September 13 September
Anhui Konka 10,000.00 No
Y 2022 2023
CN 18 August 18 August
Anhui Konka 5,500.00 2,793.51 No
Y 2022 2023
CN 22 August 22 August
Anhui Konka 18,000.00 No
Y 2022 2023
CN 10 August
Anhui Konka 28,000.00 7,330.99 15 July 2031 No
Y 2021
311
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Contracted Actual Executio
guarantee guarantee Cu n
Secured party amount amount rre Start date End date accompli
(RMB10,0 (RMB10,0 ncy shed or
00) 00) not
CN 29 October 26 October
Anhui Konka 7,000.00 7,000.00 No
Y 2021 2026
CN 24 October 26 October
Anhui Konka 7,000.00 7,000.00 No
Y 2022 2026
CN 19 September 18 September
Anhui Konka 7,000.00 7,000.00 No
Y 2022 2023
Frestec Smart CN
10,200.00 510.00 6 July 2022 4 May 2030 No
Home Y
Konka Soft CN 19 December 19 December
975.00 55.28 No
Electronic Y 2022 2023
CN
Econ Technology 1,748.80 1,748.80 19 May 2022 18 May 2023 No
Y
CN
Econ Technology 3,747.44 3,747.44 17 May 2022 16 May 2023 No
Y
CN
Econ Technology 4,996.58 4,996.58 18 May 2022 17 May 2023 No
Y
CN
Econ Technology 249.83 249.83 28 June 2022 27 June 2023 No
Y
CN
Econ Technology 2,498.29 1,667.36 8 July 2022 7 July 2023 No
Y
CN
Econ Technology 749.49 749.49 27 July 2022 26 July 2023 No
Y
CN 16 August 15 August
Econ Technology 24.98 24.98 No
Y 2022 2023
CN 6 September 5 September
Econ Technology 199.86 199.86 No
Y 2022 2023
CN 30 September 29 September
Econ Technology 3,747.44 761.23 No
Y 2022 2024
CN 23 November
Econ Technology 2,748.12 23 May 2024 No
Y 2022
Anhui Electrical CN
13,500.00 5,000.00 3 July 2020 1 July 2023 No
Appliance Y
Shenzhen Overseas
CN
Chinese Town Co., 10,000.00 580.00 31 May 2022 30 May 2023 No
Y
Ltd.
Foshan Zhujiang
Media Creative
CN 21 March
Park Cultural 980.00 783.28 17 May 2022 No
Y 2023
Development Co.,
Ltd.
CN 8 September 8 September
OCT Group 60,000.00 60,000.00 No
Y 2022 2025
OCT Group 60,000.00 60,000.00 CN 18 October 18 October No
312
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Contracted Actual Executio
guarantee guarantee Cu n
Secured party amount amount rre Start date End date accompli
(RMB10,0 (RMB10,0 ncy shed or
00) 00) not
Y 2022 2025
(2) The Company was secured party
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
15 14
CN
Electronics Technology 80,000.00 September September No
Y
2022 2023
CN 8 January 8 January
OCT Group 100,000.00 No
Y 2021 2024
CN 21 May
OCT Group 50,000.00 21 May 2021 No
Y 2024
CN
OCT Group 80,000.00 9 July 2021 9 July 2024 No
Y
CN 8 September 8 September
OCT Group 60,000.00 No
Y 2022 2025
CN 18 October 18 October
OCT Group 60,000.00 No
Y 2022 2025
CN
OCT Group 120,000.00 14 July 2022 14 July 2025 No
Y
CN 21 June
OCT Group 100,000.00 22 June 2022 No
Y 2024
CN 23 June
OCT Group 149,250.00 24 June 2021 No
Y 2024
CN 23 August 22 August
OCT Group 45,000.00 No
Y 2022 2025
22
CN 22 December
OCT Group 1,000.00 December No
Y 2022
2025
Hu Zehong, Liang Ruiling, CN 23 February 23 February
2,431.05 No
Dai Yaojin Y 2022 2024
25
Hu Zehong, Liang Ruiling, CN 25 December
342.65 December No
Dai Yaojin Y 2020
2023
Hu Zehong, Liang Ruiling, CN 31 August
127.11 31 May 2021 No
Dai Yaojin Y 2023
CN 6 November 1 December
Zhu Xinming 1,470.00 No
Y 2020 2023
Jiangxi Xinzixin Real Estate CN 25 June
2,450.00 26 June 2022 No
Co., Ltd. Y 2023
Jiangxi Xinzixin Real Estate 10 March 9 March
485.10 CN No
Co., Ltd. 2022 2024
313
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
Y
29 29
Jiangxi Xinzixin Real Estate CN
1,693.30 September September No
Co., Ltd. Y
2020 2023
31
Jiangxi Xinzixin Real Estate CN 21 December
2,156.00 December No
Co., Ltd. Y 2020
2022
30
CN 30 December
Zhu Xinming 168.08 December No
Y 2020
2023
Jiangxi Xinzixin Real Estate CN 19 May
435.02 19 May 2020 No
Co., Ltd. Y 2023
CN 8 December 8 December
Zhu Xinming 355.55 No
Y 2020 2023
Jiangxi Xinzixin Real Estate CN 28 June
2,940.00 29 June 2022 No
Co., Ltd. Y 2023
CN 8 January 8 January
Zhu Xinming 219.95 No
Y 2020 2023
Jiangxi Xinzixin Real Estate CN 10 March 9 March
485.10 No
Co., Ltd. Y 2022 2024
Jiangxi Xinzixin Real Estate CN
725.11 14 July 2020 14 July 2023 No
Co., Ltd. Y
31
CN 13 November
Econ Technology 3,300.00 December No
Y 2020
2024
Chuzhou State-owned
CN 18 August 18 August
Assets Management Co., 614.57 No
Y 2022 2023
Ltd.
Chuzhou State-owned
CN 10 August
Assets Management Co., 1,612.82 15 July 2031 No
Y 2021
Ltd.
Chuzhou State-owned
CN 29 October 26 October
Assets Management Co., 1,540.00 No
Y 2021 2026
Ltd.
Chuzhou State-owned
CN 24 October 26 October
Assets Management Co., 1,540.00 No
Y 2022 2026
Ltd.
Chuzhou State-owned 19 18
CN
Assets Management Co., 1,540.00 September September No
Y
Ltd. 2022 2023
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd., 31
CN 1 January
Huaying Gaokede 488.37 December No
Y 2022
Electronics Technology Co., 2025
Ltd., Huaying Gaokelong
Electronics Technology Co.,
Ltd., Shenzhen Baili
314
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
Yongxing Technology Co.,
Ltd.
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd.,
Huaying Gaokede 31
CN 1 January
Electronics Technology Co., 552.72 December No
Y 2022
Ltd., Huaying Gaokelong 2025
Electronics Technology Co.,
Ltd., Shenzhen Baili
Yongxing Technology Co.,
Ltd.
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd.,
Huaying Gaokede 31
CN 1 January
Electronics Technology Co., 735.00 December No
Y 2022
Ltd., Huaying Gaokelong 2025
Electronics Technology Co.,
Ltd., Shenzhen Baili
Yongxing Technology Co.,
Ltd.
31
Hu Zehong, Liang Ruiling, CN
2,450.00 1 July 2018 December No
Dai Yaojin Y
2025
31
Hu Zehong, Liang Ruiling, CN
4,899.02 1 July 2018 December No
Dai Yaojin Y
2025
31
Suiyong Rongxin Asset CN 1 January
980.00 December No
Management Co., Ltd. Y 2018
2022
31
Suiyong Rongxin Asset CN 1 January
2,450.00 December No
Management Co., Ltd. Y 2018
2022
31
Suiyong Rongxin Asset CN 1 January
1,862.00 December No
Management Co., Ltd. Y 2018
2022
CN 15 October 14 October
Zhu Xinming 11,123.00 No
Y 2021 2022
CN 15 October 14 October
Zhu Xinming 1,323.00 No
Y 2021 2022
31
CN 1 January
Zhu Xinming 443.45 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 283.32 December No
Y 2022
2022
1 January 31
Zhu Xinming 235.95 CN No
2022 December
315
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
Y 2022
CN 19 February 18 February
Zhu Xinming 13,249.19 No
Y 2022 2023
CN 1 March 28 February
Zhu Xinming 6,860.00 No
Y 2022 2023
CN 9 March 8 March
Zhu Xinming 2,330.54 No
Y 2022 2023
31
CN 1 January
Zhu Xinming 44.05 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 443.45 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 278.55 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 231.91 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 44.05 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 443.45 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 274.27 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 66.67 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 44.05 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 443.45 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 78.79 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 44.05 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 224.27 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 214.50 December No
Y 2022
2022
316
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
31
CN 1 January
Zhu Xinming 262.79 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 649.29 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 298.90 December No
Y 2022
2022
CN 28 February 27 February
Zhu Xinming 490.00 No
Y 2022 2023
31
CN 1 January
Zhu Xinming 224.27 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 210.90 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 224.27 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 260.25 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 210.90 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 298.90 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 224.27 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 60.57 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 224.27 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 257.71 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 60.57 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 286.65 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 224.27 December No
Y 2022
2022
317
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
31
CN 1 January
Zhu Xinming 224.27 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 255.17 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 110.25 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 101.77 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 4.58 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 223.85 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 171.33 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 93.12 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 223.85 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 171.33 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 93.12 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 223.85 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 171.33 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 93.12 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 223.85 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 76.44 December No
Y 2022
2022
31
CN 1 January
Zhu Xinming 93.12 December No
Y 2022
2022
318
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
CN 1 March 28 February
Zhu Xinming 2,940.00 No
Y 2022 2023
Chuzhou Hanshang Electric CN 19 May
2,450.00 19 May 2022 No
Appliance Co., Ltd. Y 2023
Chuzhou Hanshang Electric CN 19 May
2,083.96 19 May 2022 No
Appliance Co., Ltd. Y 2023
Yuan Shengxiang, Yudong
CN 15 August 14 August
Environmental Protection 6,370.00 No
Y 2022 2023
Technology Co., Ltd.
Yuan Shengxiang, Yudong
CN 21 December 14 August
Environmental Protection 2,450.00 No
Y 2022 2023
Technology Co., Ltd.
Konka Ventures
CN 15 December 5 November
Development (Shenzhen) 1,322.54 No
Y 2021 2022
Co., Ltd.
31
31 December
Wu Guoren 875.00 USD December No
2019
2024
31
31 December
Wu Guoren 2,450.00 USD December No
2019
2024
31
31 December
Wu Guoren 212.50 USD December No
2019
2024
31
31 December
Xiao Yongsong 840.00 USD December No
2019
2024
31
31 December
Xiao Yongsong 2,352.00 USD December No
2019
2024
31
31 December
Xiao Yongsong 204.00 USD December No
2019
2024
Shenzhen Unifortune Supply 31
Chain Management Co., 1,477.84 USD 21 June 2021 December No
Ltd. 2022
Shenzhen Unifortune Supply 31
Chain Management Co., 867.30 USD 21 June 2021 December No
Ltd. 2022
31
Guizhou Huajinrun 1 January
381.15 USD December No
Technology Co. Ltd. 2022
2025
31
Guizhou Huajinrun 1 January
157.50 USD December No
Technology Co. Ltd. 2022
2025
31
Shenzhen Henglongtong 1 January
241.40 USD December No
Technology Co., Ltd. 2022
2025
Shenzhen Henglongtong 1 January 31
99.75 USD No
Technology Co., Ltd. 2022 December
319
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0,000) y d or not
2025
31
AUJET INDUSTRY 10 November
3,227.63 USD December No
LIMITED 2021
2023
31
AUJET INDUSTRY 10 November
89.18 USD December No
LIMITED 2021
2023
31
AUJET INDUSTRY
1,029.00 USD 20 July 2020 December No
LIMITED
2023
4. Borrowings of Funds
Cur
Name of related parties Amount renc Start date Maturity date
y
Borrowing:
OCT Group 131,091.00 CNY 10 January 2022 25 February 2024
OCT Group 50,000.00 CNY 19 May 2022 25 February 2024
OCT Group 70,000.00 CNY 26 May 2022 25 February 2024
Chuzhou Hanshang Electric
10,535.00 CNY 1 February 2022 31 January 2023
Appliance Co., Ltd.
Chuzhou Hanshang Electric
490.00 CNY 30 May 2022 29 May 2023
Appliance Co., Ltd.
Chuzhou Hanshang Electric
1,837.50 CNY 10 November 2022 31 December 2022
Appliance Co., Ltd.
Econ Technology 33.00 CNY 31 March 2022 19 March 2023
Econ Technology 31.35 CNY 2 June 2021 19 March 2023
Econ Technology 20.13 CNY 4 June 2021 19 March 2023
Econ Technology 1,536.15 CNY 13 August 2021 19 March 2023
Econ Technology 285.85 CNY 13 October 2021 19 March 2023
Econ Technology 40.26 CNY 17 December 2021 19 March 2023
Econ Technology 99.26 CNY 16 February 2022 19 March 2023
Econ Technology 95.96 CNY 12 May 2022 28 February 2023
Econ Technology 39.60 CNY 16 June 2022 28 February 2023
Econ Technology 1,070.92 CNY 23 June 2022 28 February 2023
Econ Technology 49.50 CNY 19 September 2022 28 February 2023
Econ Technology 33.00 CNY 19 December 2022 28 February 2023
Chongqing Kangjian
Photoelectric Technology 800.00 CNY 26 October 2022 24 February 2023
Co., Ltd.
320
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Cur
Name of related parties Amount renc Start date Maturity date
y
Guangdong Wanrundaoheng
Culture Tourism 3,040.00 CNY 19 July 2022 17 July 2023
Development Co., Ltd.
Guangdong Wanrundaoheng
Culture Tourism 5,074.10 CNY 15 September 2022 17 July 2023
Development Co., Ltd.
Kangkong Venture Capital
245.00 CNY 21 July 2022 19 July 2023
(Shenzhen) Co., Ltd.
Beijing Xuri Shengxing CNY
228.67 5 December 2022 30 November 2023
Technology Co., Ltd.
Total 276,676.25
Lending:
Yantai Kangyun Industrial
10,020.00 CNY 23 November 2021 22 November 2022
Development Co., Ltd.
Yantai Kangyun Industrial
3,230.00 CNY 25 August 2022 24 August 2023
Development Co., Ltd.
Yantai Kangyun Industrial
1,020.00 CNY 17 March 2022 19 January 2023
Development Co., Ltd.
Yantai Kangyun Industrial
3,400.00 CNY 23 May 2022 30 December 2022
Development Co., Ltd.
Yantai Kangyun Industrial
2,500.00 CNY 1 June 2022 30 December 2022
Development Co., Ltd.
Yantai Kangyun Industrial
2,430.00 CNY 28 November 2022 14 November 2023
Development Co., Ltd.
Dongguan Guankangyuhong
19,600.00 CNY 6 August 2022 15 July 2023
Investment Co., Ltd.
Chongqing Lanlv Moma
Real Estate Development 18,843.00 CNY 25 November 2020 24 November 2021
Co., Ltd.
Econ Technology 18,315.11 CNY 28 December 2022 16 March 2023
Sichuan Chengrui 14,724.50 CNY 8 December 2022 7 December 2023
Chuzhou Kangxin Health
Industry Development Co., 15,288.00 CNY 18 December 2022 17 October 2023
Ltd.
Chuzhou Kangxin Health
Industry Development Co., 735.00 CNY 6 January 2022 4 January 2023
Ltd.
Chuzhou Kangxin Health
Industry Development Co., 16,758.00 CNY 26 March 2022 21 March 2023
Ltd.
Chuzhou Kangxin Health
Industry Development Co., 1,359.26 CNY 22 March 2022 20 March 2023
Ltd.
Chongqing Liangshan
Industrial Investment Co., 7,524.80 CNY 24 December 2022 23 December 2023
Ltd.
Yantai Kangyue Investment
12,852.70 CNY 16 December 2021 5 November 2022
Co., Ltd.
321
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Cur
Name of related parties Amount renc Start date Maturity date
y
Total 148,600.37
5. Information on Assets Transfer and Debt Restructuring by Related Party
Amount incurred Amount incurred last
Name of related parties Content
in this year year
OCT Group and its
Equity transfer 1,400,000,000.00
subsidiaries and associates
Equity transfer 1,000,000.00
Chutian Dragon Co., Ltd.
Transfer of patents,
OCT Group and its
software copyrights 12,843,396.23
subsidiaries and associates
and trademarks
Total 12,843,396.23 1,401,000,000.00
6. Information on Remuneration for Key Management Personnel
Reporting Period Same period of last year
Item
(RMB’0,000) (RMB’0,000)
Total remuneration 2,206.85 2,646.29
(II) Balances with Related Party
1. Accounts Receivable
Ending balance Opening balance
Related party Bad debt Bad debt
Carrying balance Carrying balance
provision provision
Accounts
receivable:
OCT Group Co.,
Ltd. and its
156,687,630.71 8,433,199.71 112,295,325.56 2,448,228.43
subsidiaries and
associates
Shenzhen Yaode
Technology Co.,
143,135,135.62 121,664,865.28 131,032,162.46 65,516,081.23
Ltd. and its
subsidiaries
HOHOELECTRIC
AL&FURNITURE 123,273,472.66 18,429,711.73 113,606,433.75 7,481,903.77
CO.,LIMITED
Chuzhou Hanshang
Electric Appliance 52,156,655.05 1,063,995.77 45,393,066.82 926,018.56
Co., Ltd.
322
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Anhui Kaikai Shijie
E-commerce Co.,
47,638,172.10 2,368,282.48 148,730,451.88 8,135,088.28
Ltd. and its
subsidiaries
Shenzhen
Kanghongxing
39,215,316.77 32,913,147.45 39,940,213.90 6,151,331.52
Smart Technology
Co., Ltd.
Shenzhen Jielunte
Technology Co.,
Ltd. and its
13,523,856.80 410,843.28 22,468,132.66 458,349.90
subsidiaries as well
as its associated
enterprises
Shenzhen Konda E-
display Co., Ltd. 10,824,609.83 220,822.05 12,099,780.90 247,013.76
and its subsidiaries
Subtotal of other
22,671,223.40 675,458.06 27,367,315.41 583,847.73
related parties
Total 609,126,072.94 186,180,325.81 652,932,883.34 91,947,863.18
Financing
accounts
receivable/Notes
receivable:
Korea Electric
Group Co., Ltd. and 103,340,000.00 15,000,000.00
its subsidiaries
Chuzhou Hanshang
Electric Appliance 5,028,746.39 14,000,000.00
Co., Ltd.
Anhui Kaikai Shijie
E-commerce Co.,
63,064.76 1,815,713.26
Ltd. and its
subsidiaries
Total 108,431,811.15 30,815,713.26
Dividends
receivable
Chongqing Qingjia
Electronics Co., 272,999.43
Ltd.
Total 272,999.43
Other receivables:
Jiangxi Meiji 93,512,640.31 86,901,651.51 93,512,640.31 52,729,155.43
323
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Enterprise Co., Ltd.
Dai Rongxing 83,058,831.58 83,058,831.58 79,974,500.96 52,816,781.04
Chongqing
Liangshan
Industrial 75,330,416.70 1,536,740.51 223,196,349.34 4,553,205.53
Investment Co.,
Ltd.
Shenzhen
Kanghongxing
39,888,921.64 36,024,193.48 36,670,149.78 23,809,925.53
Smart Technology
Co., Ltd.
OCT Group Co.,
Ltd. and its
35,760,987.33 20,304,912.84 30,429,787.06 19,968,912.07
subsidiaries and
associates
Huanjia Group Co.,
25,083,675.53 24,582,002.02 25,083,675.53 17,302,185.43
Ltd.
Dongguan
Guankang Yuhong
Investment Co.,
Ltd. (formerly
22,000,000.00 220,000.00
known as
Dongguan Konka
Investment Co.,
Ltd.)
HOHOELECTRIC
AL&FURNITURE 2,443,773.67 554,492.25 2,237,153.78 224,162.83
CO.,LIMITED
Hu Zehong 2,058,174.06 41,986.75
Subtotal of other
159,634.37 3,230.02 117,002.15 46,468.84
related parties
Total 379,297,055.19 253,228,040.96 491,221,258.91 171,450,796.70
Prepayments:
Shenzhen Kangying
Semiconductor
Technology Co., 5,720,375.37
Ltd. and its
subsidiaries
Puchuang Jiakang
Technology Co, 3,176,682.44
Ltd.
OCT Group Co.,
Ltd. and its
1,094,665.28
subsidiaries and
associates
Shenzhen
Kanghongxing
4,298,225.15
Smart Technology
Co., Ltd.
KK Smartech
1,534,918.13
Limited
324
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Subtotal of other
1,184,075.41 961,888.99
related parties
Total 11,175,798.50 6,795,032.27
Current portion of
non-current
assets:
Feidi Technology
(Shenzhen) Co.,
10,395,523.78
Ltd. and its
subsidiaries
Total 10,395,523.78
Other current
assets:
Chuzhou Kangxin
Health Industry
366,191,797.92 339,338,066.67
Development Co.,
Ltd.
Yantai Kangyun
Industrial
Development Co., 238,121,355.60 127,164,360.00
Ltd. and its
subsidiaries
Chongqing Lanlv
Moma Real Estate
220,546,846.61 205,263,079.97
Development Co.,
Ltd.
Dongguan
Guankang Yuhong
Investment Co.,
Ltd. (formerly
217,760,251.21 211,662,473.43
known as
Dongguan Konka
Investment Co.,
Ltd.)
Shandong Econ
Technology Co.,
183,151,149.03 427,620,131.62
Ltd. and its
subsidiaries
Yantai Kangyue
Investment Co., 160,287,449.78 149,862,482.00
Ltd.
Sichuan Chengrui 158,533,783.32
325
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
OCT Group Co.,
Ltd. and its
163,287,310.66
subsidiaries and
associates
Total 1,544,592,633.47 1,624,197,904.35
Long-term
receivables:
Feidi Technology
(Shenzhen) Co.,
565,099.14
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. 22,429,429.76 46,950,863.88
Shenzhen Jielunte Technology Co., Ltd. and its
13,942,717.31 30,500,867.67
subsidiaries
OCT Group Co., Ltd. and its subsidiaries and associates 13,114,183.37 9,087,624.55
Shenzhen Konda E-display Co., Ltd. and its subsidiaries 12,879,895.22 15,522,755.99
HOHOELECTRICAL&FURNITURECO.,LIMITED 6,083,652.55 2,391,530.03
Panxu Intelligence Co., Ltd. and its subsidiaries 5,894,192.83 1,433.53
Anhui Kaikai Shijie E-commerce Co., Ltd. and its
4,615,128.91 4,370,387.10
subsidiaries
Handian Group Co., Ltd. and its subsidiaries 2,609,330.74 9,047,641.17
Dongguan Kangzhihui Electronics Co., Ltd. 1,730,506.79 6,435,302.72
Chongqing Ruiyin Renewable Resources Co., Ltd. and
10,737,902.34
its subsidiaries
Subtotal of other related parties 6,167,532.67 9 605,650.30
Total 89,466,570.15 144,651,959.28
Notes payable:
Chuzhou Hanshang Electric Appliance Co., Ltd. 13,000,000.00
Handian Group Co., Ltd. and its subsidiaries 9,889,686.67 15,984,491.27
Shenzhen Jielunte Technology Co., Ltd. and its
4,868,677.92 8,933,479.14
subsidiaries
Dongguan Kangjia New Materials Technology Co., Ltd. 5,664,319.21 6,265,841.17
326
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(formerly named: Dongguan Konka Packing Materials
Co., Ltd.)
Panxu Intelligence Co., Ltd. and its subsidiaries 4,425,575.22 4,782,566.22
Puchuang Jiakang Technology Co, Ltd. 22,412,418.23
Total 37,848,259.02 58,378,796.03
Contractual liabilities/other current liabilities:
OCT Group Co., Ltd. and its subsidiaries and associates 42,395,460.49 46,611,404.78
Shenzhen Konda E-display Co., Ltd. and its subsidiaries 2,873,318.85
Shenzhen Aimijiakang Technology Co., Ltd. (formerly
2,541,156.83 6,360,494.53
known as Sichuan Aimijiakang Technology Co., Ltd.)
Shandong Kangfei Intelligent Electrical Appliances Co.,
1,328,665.36 58,029.27
Ltd.
Subtotal of other related parties 1,625,651.76 1,117,757.57
Total 50,764,253.29 54,147,686.15
Other payables:
Chuzhou Hanshang Electric Appliance Co., Ltd. 185,043,644.73 130,054,989.90
Guangdong Wanrundaoheng Culture Tourism
83,480,206.21 120,212,000.00
Development Co., Ltd.
Shandong Econ Technology Co., Ltd. and its
42,331,626.74 20,241,596.71
subsidiaries
Chongqing Kangjian Photoelectric Technology Co.,
8,029,369.86
Ltd.
OCT Group Co., Ltd. and its subsidiaries and associates 5,897,248.07 4,008,920.58
Kangkong Venture Capital (Shenzhen) Co., Ltd.
(formerly known as Konka Venture Capital (Shenzhen) 2,483,024.67
Co., Ltd.)
Central Enterprises in poverty-stricken
areas(Jiangxi)Industrial Investment Funds 2,400,000.00
Partnership(L.P.)
Beijing Xuri Shengxing Technology Co., Ltd. 2,396,943.13 1,100,000.00
Dongguan Kangjia New Materials Technology Co., Ltd. 209,400.00 4,923,662.92
(formerly named: Dongguan Konka Packing Materials
Co., Ltd.)
E3info (Hainan) Technology Co., Ltd. and its 163,730.25 50,166,438.36
subsidiaries
Feidi Technology (Shenzhen) Co., Ltd. and its 6,503,608.50
subsidiaries
Chongqing Ruiyin Renewable Resources Co., Ltd. and
2,454,022.61
its subsidiaries
327
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Subtotal of other related parties 10,210,205.65 8,757,387.53
Total 342,645,399.31 348,422,627.11
XIV. Contingency
(1) Before the Company acquired Jiangxi Konka , Jiangxi Konka and its subsidiaries Xinfeng
Microcrystalline and Jiangxi High Transparent Substrate (formerly known as Nano-Grystallized
Glass) provided joint and several liability guarantee for the loans from Nanchang Rural Commercial
Bank Co., Ltd. to Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material and
Jiangxi Shanshi Science and Technology, related parties of former controlling shareholders of
Jiangxi Konka , 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 , 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
328
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
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.
(2) As for the dispute of the Company with Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo Zongwu
and Shenzhen Yaode Technology Co., Ltd. on share repurchase, since the other party did not actively
perform the repurchase obligation, the Company filed a lawsuit with the People's Court of Nanshan
District, Shenzhen. The amount of the subject matter involved in the lawsuit is RMB249 million. On
November 22, 2021, the Company applied to Shenzhen Nanshan District People's Court for property
preservation. On 11 January 2023, the People’s Court of Nanshan District of Shenzhen rendered a
judgment of first instance, ruling that Luo Zaotong, Luo Jingxia, Luo Zongyin and Luo Zongwu pay
the repurchase amount of RMB172 million plus the sum of interest calculated at 12% per annum
from 6 April 2017 to the date of payment of the equity repurchase by the defendant Luo Zaotong,
Luo Jingxia, Luo Zongyin and Luo Zongwu. As at the date of issuance of this report, the case was
executed in progress.
(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, the case is in trial.
(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 at the date of issuance of this report, the case was
executed in progress.
(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 8 September 2022, the court issued a
judgment in favour of the Company’s subsidiary. As at the date of issuance of this report, the case
329
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
was executed in progress.
(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 involving RMB150 million is in compulsory execution and shareholders have been
added as persons to be executed in this case. For the remaining RMB150 million, the defendants
have been ordered to pay Konka Group the bills and interest, which is now in compulsory execution.
As at the date of issuance of this report, the case was executed in progress.
(7) The amount of the subject matter involved in the dispute between the Company's subsidiaries
Frestec Refrigeration, Anhui Konka, Konka Material and Anhui Tongchuang (plaintiff) and Shantou
Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics Co., Ltd., Lin Yuanqin,
Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., Chuangfu Commerce & Trade Plaza
Real Estate Development (Huizhou) Co., Ltd. and Puning Junlong Trade Co., Ltd. (defendants) over
contracts is RMB380 million. As at the date of issuance of this report, the case is in trial.
(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.
(defendants) 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 9 September 2022, the
Company and Elion entered into an execution settlement agreement, which provides for monthly
repayment from 15 September 2022 to 25 August 2023 to pay off the outstanding amount of this
case. As at the issuance of this report, an accumulated amount of RMB63 million has been returned,
and the case was executed in progress.
(9) The company's subsidiary Kangjia Huanjia (the plaintiff) and Huanjia Group Co., LTD., Dalian
Jinshunda Material Recycling Co., LTD. (the defendant) and 38 other companies in a series of sales
contract disputes, the subject of the litigation amount is 890 million yuan. Kangjia Huanjia has
applied for the court to seal up and freeze the defendant's corresponding property. In the case
involving 322 million yuan of litigation, the court delivered a ruling of first instance to Kangjia in
March 2023, rejecting the suit of Kangjia Huanjia. The remaining cases, involving 568 million yuan,
were decided by the court of first instance in December 2022, and Kangjia Huanjiadun has appealed
to the Liaoning Provincial High People's Court. As of the date of this report, the case is under trial.
(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,
330
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Shenzhen Xinlian Xingyao Trading Co., Ltd., Shenzhen Jinchuan Qianchao Network Technology
Co., Ltd., Puning Junlong Trading Co., Ltd. and Huang Zhihao (defendants) 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, the case is in trial.
(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. The case executed a return of RMB2 million, and the Company is
applying to the court for adding shareholders as persons to be executed. As at the date of issuance of
this report, the case was executed in progress.
(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. On 4 January 2022, the
enforcement has been filed. The case executed a return of RMB43 million. As at the date of issuance
of this report, the case was executed in progress.
(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.
(defendants) 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 as persons to be
executed.
(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. On 14 October 2022, the enforcement has been filed.
As at the date of issuance of this report, the case was executed in progress.
331
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(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. (defendants) over freight forwarding contracts in maritime and open sea
waters is RMB38 million. On April 26, 2021, Konka applied to Shanghai Maritime Court for
compulsory execution. On June 7, 2021, the Court accepted the case. As at the date of issuance of
this report, the case was executed in progress.
(16) The amount of the subject matter involved in the dispute between the Company’s subsidiary
Pengrun Technology (plaintiff) and Guangan Ou Qi Shi Electronic Technology Co., Ltd., Guan
Hongshao, Huaying Gaokede Electronic Technology Co., Ltd., Huaying Gaokelong Electronic
Technology Co., Ltd., Guizhou Jiaguida Technology Co., Ltd., Sichuan Hongrongyuan Real Estate
Co., Ltd., Du Xinyu, Linbolong and Wang Shisheng (defendants) over trust contract is RMB167
million. The case has been applied for property preservation measures. As at the date of issuance of
this report, the cases are under trial.
(17) The amount of the subject matter involved in the dispute between the Company (plaintiff) and
Yantai Kangyue Investment Co., Ltd. (defendant) over borrowing contract is RMB160 million. The
Company has applied to the Shenzhen Intermediate People's Court for property preservation. As at
the date of issuance of this report, the cases are under trial.
(18) The amount of the subject matter involved in the dispute between the Company’s subsidiary
Konka Huanjia (plaintiff) and Bank Of Fuxin Co., Ltd., Huanjia Group, Dalian Jinjia Materials
Recycling Co., Ltd., Dalian Jin Kaixuan Renewable Resources Acquisition Chain Co., Ltd., Dalian
Yingtai Paper Co., Ltd., Dalian Zhanhong Renewable Resources Recycling Co., Ltd. and Wang
Jinping (defendants) over the execution objection by an outsider is RMB240 million. As at the date
of issuance of this report, the cases are under trial.
(19) The amount of the subject matter involved in the dispute between the Company’s subsidiary
Hong Kong Konka (plaintiff) and Hong Kong Jinzhu Electronic Co., Limited (defendant) over a
sales and purchase contract is RMB77 million. Hong Kong Konka has applied for arbitration.
Shenzhen Jinzhu Industrial Company Limited, Xu Xiang, Zheng Baoyao and Ke Hanhua provided
guarantees for the debts of Hong Kong Jinzhu Electronic Co., Limited to Hong Kong Konka, and
Hong Kong Konka has filed a lawsuit against the above-mentioned guarantors. As at the date of
issuance of this report, the cases are under trial.
(20) The amount of the subject matter involved in the dispute between the Company’s subsidiary
Jiaxin Technology Co., Limited (plaintiff) and Tripod Electronics Technology (HongKong) Limited,
Chen Wenhuan and Chen Baohong (defendants) over a sales and purchase contract of international
332
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
goods is RMB51 million. As at the date of issuance of this report, the cases are under trial.
(21) The amount of the subject matter involved in the dispute between the Company’s subsidiary
Kangzhi Trade (plaintiff) and B&L TECHNOLOGY CO., LIMITED (defendant) over a sales and
purchase contract of international goods is RMB25 million. As at the date of issuance of this report,
the case was executed in progress.
(22) The amount of the subject matter involved in the dispute between the Company’s subsidiary
Anhui Konka (plaintiff) and MAKENA Electronic (Shenzhen) Co., Ltd. (defendant) over a guarantee
contract is RMB21 million. On 27 December 2022, the Court The court made a judgment of first
instance, which supported most of Anhui Konka's claims, and both parties appealed against the first
instance judgment. As at the date of issuance of this report, the cases are under trial.
(23) The amount of the subject matter involved in the dispute between Shenzhen Oriental Venture
Capital Investment Co., Ltd. (plaintiff) and the Company (defendant) over a contract is RMB750
million. As at the date of issuance of this report, the cases are under trial.
(24) The amount of the subject matter involved in the dispute between the Company and the
Company’s subsidiary Electronics Technology (defendants) and Wu Rong (plaintiff) over a sales and
purchase contract is RMB22 million. As at the date of issuance of this report, the cases are under
trial.
XIII. Commitment and Contingency
1. Capital Commitments
Item Ending balance Beginning balance
Large amount contract signed but
hasn’t been recognized in financial
statements
-Commitment on construction and
purchase of long-lived assets
-Large amount contract 523,553,381.89 954,751,938.62
-Foreign investment commitments
Total 523,553,381.89 954,751,938.62
2. Other Commitments
As of 31 December 2022, there were no other significant commitments for the Company to disclose.
333
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
XIV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
As at the date of issuance of this report, no significant non-adjusted events occurred.
2. Sales Return
As at the date of issuance of this report, no significant sales return occurred.
3. The Group had no significant post-balance-sheet-date events other than the above-
mentioned ones disclosed after the balance sheet date.
XV. Other Significant Events
The Company had 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 Propo rawal
Carrying value
Amount rtion Amount propor
(%) tion
(%)
Accounts receivable of
expected credit losses 723,559,609.63 13.60 652,094,110.07 90.12 71,465,499.56
withdrawn individually
Accounts receivable of
expected credit losses
withdrawn by portfolio
Of which: Aging
410,174,776.68 7.71 193,889,834.11 47.27 216,284,942.57
portfolio
Related party
4,186,128,552.37 78.69 4,186,128,552.37
group
Subtotal of portfolios 4,596,303,329.05 86.40 193,889,834.11 4.22 4,402,413,494.94
Total 5,319,862,938.68 100.00 845,983,944.18 15.90 4,473,878,994.50
334
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
(continued)
Opening balance
Carrying balance Bad debt provision
Withd
Category Propo rawal
Carrying value
Amount rtion Amount propor
(%) tion
(%)
Accounts receivable of
expected credit losses 963,517,996.45 18.14 660,600,525.26 68.56 302,917,471.19
withdrawn individually
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
Related party
3,679,956,748.33 69.30 3,679,956,748.33
group
Subtotal of portfolios 4,346,785,370.49 81.86 181,017,964.57 4.16 4,165,767,405.92
Total 5,310,303,366.94 100.00 841,618,489.83 15.85 4,468,684,877.11
1） Provision for bad debts of accounts receivable provided individually
Ending balance
Withd
rawal
Name Withdrawal
Carrying balance Bad debt provision propor
reason
tion
(%)
Shanghai Huaxin
Expected to be
International Group Co., 299,136,676.70 293,153,943.17 98.00
difficult to recover
Ltd.
Hongtu Sanbao High-
Agreement
tech Technology Co., 200,000,000.00 160,000,000.00 80.00
reorganization
Ltd.
Zhongfu Tiangong
Expected to be
Construction Group Co., 71,589,096.65 53,691,822.49 75.00
difficult to recover
Ltd.
CCCC First Harbor
Expected to be
Engineering Company 55,438,105.00 55,438,105.00 100.00
difficult to recover
Ltd.
335
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
China Energy Electric Expected to be
50,000,000.00 50,000,000.00 100.00
Fuel Co., Ltd. difficult to recover
Henan Radio and
Expected to be
Television Network Co., 26,847,370.00 26,847,370.00 100.00
difficult to recover
Ltd.
Expected to be
Others 20,548,361.28 12,962,869.41 63.08
difficult to recover
Total 723,559,609.63 652,094,110.07 90.12
2） Bad debt provision for accounts receivable made as per portfolio
①Among Groups, Withdrawal of Expected Credit Loss by Aging
Ending balance
Aging Bad debt Withdrawal
Carrying balance
provision proportion (%)
Within 1 year 165,968,762.52 3,385,762.76 2.04
1 to 2 years 54,225,280.86 5,433,373.14 10.02
2 to 3 years 2,927,210.54 664,184.07 22.69
3 to 4 years 7,537,040.46 4,890,031.84 64.88
Over 4 years 179,516,482.30 179,516,482.30 100.00
Total 410,174,776.68 193,889,834.11 47.27
②Among Groups, Withdrawal of Expected Credit Loss by Adopting Other Method
Ending balance
Aging Bad debt Withdrawal
Carrying balance
provision proportion (%)
Related party group 4,186,128,552.37
Total 4,186,128,552.37
（2） Accounts Receivable Listed by Aging Portfolio
Aging Ending balance
Within 1 year 4,177,587,681.73
1 to 2 years 125,417,030.16
2 to 3 years 75,011,848.13
3 to 4 years 130,238,580.35
Over 4 years 811,607,798.31
Subtotal 5,319,862,938.68
Less: bad debt provision 845,983,944.18
336
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Total 4,473,878,994.50
（3） Information of Bad Debt Provision in this Year
Changes in this year
Category Opening balance
Withdrawal Reversal or recovery
Bad debt provision of accounts 123,011,503.35
receivable 841,618,489.83
Total 841,618,489.83 123,011,503.35
(continued)
Changes in this year
Category Written-off or Ending balance
Others
verified
Bad debt provision of accounts 118,646,049.00 845,983,944.18
receivable
Total 118,646,049.00 845,983,944.18
Note: The debt restructuring of Tianjin Tewoo Group Finance Co., Ltd. resulted in a decrease of
RMB100,000,000.00.
（4） Actually Verified Accounts Receivable in this Year
Item Amount verified
Actually verified accounts receivable 18,646,049.00
Of which, verification of significant accounts receivable:
Whether
occurred
because of
Name of the entity Nature Amount Reason Procedure related-
party
transactio
ns
Reviewed and
Xi’an Huajin Technology Expected
Loan 4,508,000.00 approved by Not
Trading Company unrecoverable
the Board
Reviewed and
Shenzhen Zhongbailong Expected
Loan 2,086,034.00 approved by Not
Industrial Co., Ltd. unrecoverable
the Board
Total 6,594,034.00
337
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
（5） Receivables with Top 5 Ending Balance Collected by Arrears Party
The total amount of receivables with top 5 ending balance collected by arrears party this year
was RMB4,225,137,970.33, accounting for 79.42% of the total ending balance of accounts receivable.
The total ending balance of bad debt provision correspondingly withdrawn was RMB453,153,943.17.
（6） There were no accounts receivable derecognized due to the transfer of financial assets
this year.
（7） There were no assets or liabilities formed due to the transfer and the continued
involvement of accounts receivable this year.
2. Other Receivables
Item Ending balance Opening balance
Interests receivable 3,878,580.64 2,002,526.91
Dividends receivable 393,563,347.61 383,943,256.80
Other Receivables 9,944,884,426.80 10,539,120,447.82
Total 10,342,326,355.05 10,925,066,231.53
2.1 Interest receivable
Item Ending balance Opening balance
Term deposit interest 3,878,580.64 2,002,526.91
Total 3,878,580.64 2,002,526.91
2.2 Dividends Receivable
Investee Ending balance Opening balance
Hong Kong Konka Limited 113,563,347.61 103,943,256.80
Suining Konka Industrial Park
280,000,000.00 280,000,000.00
Development Co., Ltd.
Total 393,563,347.61 383,943,256.80
2.3 Other Receivables
（1） Classified by Account Nature
Nature Ending carrying balance Opening carrying balance
Intercourse funds among subsidiaries 11,299,542,985.57 11,464,671,000.88
Energy-saving subsidies receivable 141,549,150.00 141,549,150.00
Intercourse funds with other related 50,667,315.53 50,667,315.53
338
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Nature Ending carrying balance Opening carrying balance
parties
Deposit and margin 17,354,107.03 10,533,532.11
Others 375,797,998.76 253,002,153.59
Total 11,884,911,556.89 11,920,423,152.11
（2） Withdrawal of Bad Debt Provision for Other Receivables
Stage 1 Stage 2 Stage 3
Expected loss in
Expected Expected credit
the duration
Bad debt provision credit loss of losses for the entire Total
(credit
the next 12 duration (with
impairment not
months credit impairment)
occurred)
Balance as at 1
2,036,471.61 54,584,345.62 1,324,681,887.06 1,381,302,704.29
January 2022
In this year, carrying
amount of other
-46,988.30 46,988.30
receivables on 1
January 2022
- Transferred to the
-46,988.30 46,988.30
Phase II
- Transferred to the
Phase III
- Transferred back to
the Phase II
- Transferred back to
the Phase I
Amount withdrawn 5,012,577.54 585,439,500.80 590,452,078.34
this year
Amount transferred 1,631,756.56 1,631,756.56
back this year
Amount written-off
this year
Amount verified this 2,368,413.91 27,727,482.07 30,095,895.98
year
Other changes
339
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Stage 1 Stage 2 Stage 3
Expected loss in
Expected Expected credit
the duration
Bad debt provision credit loss of losses for the entire Total
(credit
the next 12 duration (with
impairment not
months credit impairment)
occurred)
Balance as at 31
357,726.75 57,275,497.55 1,882,393,905.79 1,940,027,130.09
December 2022
（3） Withdrawal of Bad Debt Provision for Other Receivables by Portfolio
Ending balance
Carrying balance Bad debt provision
Withd
Category
Propo rawal Carrying value
Amount rtion Amount propor
(%) tion
(%)
Other
receivables of
expected
credit losses 1,901,377,741.07 16.00 1,882,393,905.79 99.00 18,983,835.28
withdrawn
individually
Other
receivables of
bad debt
provision
withdrawn by
credit risk
characteristic
portfolio:
Aging
portfolio 94,419,620.35 0.79 54,385,072.09 57.60 40,034,548.26
Low-risk
portfolio 16,755,275.76 0.14 3,248,152.21 19.39 13,507,123.55
Related party
group 9,872,358,919.71 83.07 9,872,358,919.71
Subtotal of
portfolios 9,983,533,815.82 84.00 57,633,224.30 0.58 9,925,900,591.52
Total 11,884,911,556.89 100.00 1,940,027,130.09 16.32 9,944,884,426.80
(continued)
Beginning balance
Category
Carrying balance Bad debt provision Carrying value
340
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Withd
Propo rawal
Amount rtion Amount propor
(%) tion
(%)
Other
receivables of
expected
1,917,144,244.04 16.08 1,324,681,887.06 69.10 592,462,356.98
credit losses
withdrawn
individually
Other
receivables of
bad debt
provision
withdrawn by
credit risk
characteristic
portfolio:
Aging
188,615,848.46 1.58 52,782,559.62 27.98 135,833,288.84
portfolio
Low-risk
17,318,036.76 0.15 3,838,257.61 22.16 13,479,779.15
portfolio
Related
9,797,345,022.85 82.19 9,797,345,022.85
party group
Subtotal of
10,003,278,908.07 83.92 56,620,817.23 0.57 9,946,658,090.84
portfolios
Total 11,920,423,152.11 100.00 1,381,302,704.29 11.59 10,539,120,447.82
（4） Other Receivables Listed by Aging
Aging Ending balance
Within 1 year 8,060,254,524.30
1 to 2 years 1,782,503,511.04
2 to 3 years 470,794,157.38
3 to 4 years 1,006,460,259.82
4 to 5 years 389,224,526.20
Over 5 years 175,674,578.15
Subtotal 11,884,911,556.89
Less: bad debt provision 1,940,027,130.09
Total 9,944,884,426.80
（5） Bad Debt Provision for Other Receivables
The amount of bad debt provision withdrawn this year was RMB588,820,321.78 with
RMB30,095,895.98 actually verified.
341
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
（6） Other Receivables Actually Written off this Year
Item Amount verified
Other receivables actually verified 35,665,095.98
（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 RMB7,381,309,268.38, accounting for 62.11% of the total ending balance of other
receivables. The total ending balance of bad debt provision correspondingly withdrawn was RMB1,
722,714,083.28.
（8） There were no other receivables derecognized due to the transfer of financial assets
this year.
（9） There were no assets or liabilities formed due to the transfer and the continued
involvement of other receivables this year.
342
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
3. Long-term Equity Investments
（1）Category of Long-term Equity Investment
Ending balance Opening balance
Item Impairment Impairment
Carrying balance Carrying value Carrying balance Carrying value
provision provision
Investment to
7,277,554,047.75 781,480,000.00 6,496,074,047.75 6,697,991,519.67 442,644,418.70 6,255,347,100.97
subsidiaries
Investment to joint
ventures and
2,824,333,468.08 219,718,378.41 2,604,615,089.67 2,618,520,670.18 240,725,547.51 2,377,795,122.67
associated
enterprises
Total 10,101,887,515.83 1,001,198,378.41 9,100,689,137.42 9,316,512,189.85 683,369,966.21 8,633,142,223.64
（2）Investment to subsidiaries
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Konka Ventures 2,550,000.00 2,550,000.00
Anhui Konka 122,780,937.98 122,780,937.98
Konka Factoring 300,000,000.00 300,000,000.00
Konka Unifortune 15,300,000.00 15,300,000.00
Wankaida 10,000,000.00 10,000,000.00
Dongguan Konka 274,783,988.91 274,783,988.91
Konka Europe 3,637,470.00 3,637,470.00
Telecommunication 360,000,000.00 360,000,000.00
343
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
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 10,000,000.00 297,650,000.00
Hong Kong Konka 781,828.61 781,828.61
Konka Investment 500,000,000.00 500,000,000.00
Electronics
1,000,000,000.00 1,000,000,000.00
Technology
Konka Huanjia 91,800,000.00
Shanghai Konka 40,000,000.00 40,000,000.00
Jiangxi Konka 349,568,066.99 349,568,066.99 349,568,066.99 689,680,000.00
Shenzhen Nianhua 30,000,000.00 30,000,000.00
Shenzhen
100,000,000.00 100,000,000.00
KONSEMI
Konka Eco-
50,000.00 50,000.00
Development
Suining Konka
200,000,000.00 200,000,000.00
Industrial Park
344
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Konka Ronghe 5,100,000.00 5,100,000.00
Suining Electronic
Technological 200,000,000.00 200,000,000.00
Innovation
Shenzhen Chuangzhi
10,000,000.00 10,000,000.00
Electrical Appliances
Kanghong (Yantai)
Environmental 1,025,100.00 1,025,100.00
Protection
Chongqing
25,500,000.00 25,500,000.00
Kangxingrui
Chongqing
Optoelectronic
933,333,333.33 933,333,333.33
Technology Research
Institute
Kowin Memory
92,520,000.00 100,000,000.00 192,520,000.00
(Shenzhen)
Jiangkang
(Shanghai) 90,000,000.00 90,000,000.00
Technology
Ningbo Kanghr
510.00 510.00
Electrical Appliance
Konka Intelligent
10,000,000.00 10,000,000.00
Manufacturing
Yibin Kangrun 67,000,000.00 67,000,000.00
Konka Material 9,205,452.93 9,205,452.93
345
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Industrial and Trade
50,000,000.00 50,000,000.00
Technology
Konka Huazhong 30,000,000.00 30,000,000.00
Sichuan Chengrui 8,000.00 19,992,000.00 20,000,000.00
Guizhou Kanggui 70,000,000.00 70,000,000.00
Material
Nantong Kanghai 15,300,000.00 15,300,000.00
Jiangxi Konka High- 50,000,000.00 50,000,000.00
tech Park
Shangrao Konka 30,000,000.00
Electronic
30,000,000.00
Technology
Innovation
Sichuan 20,000,000.00 20,000,000.00
Hongxinchen
Xi'an Kanghong 12,000,000.00
Technology Industry
12,000,000.00
Development Co.,
Ltd.
Xi'an Konka 50,000,000.00
Intelligent
Technology 50,000,000.00
Development Co.,
Ltd.
Finance lease 171,603,013.77 171,603,013.77
Songyang Konka 30,000,000.00 30,000,000.00
Intelligent
346
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Impairment
Ending balance of
Increase in this Decrease in this provision
Investee Opening balance Ending balance impairment
year year withdrawn this
provision
year
Technology
Development Co.,
Ltd.
Konka North China
(Tianjin) Technology 30,000,000.00 30,000,000.00
Co., Ltd.
Total 6,255,347,100.97 610,295,013.77 369,568,066.99 6,496,074,047.75 349,568,066.99 781,480,000.00
（3）Investment to joint ventures and associated enterprises
Increase/decrease this year
Closing Balance of Gains and losses Adjustment of other
Investee Additional Investment
Last Year recognized under the comprehensive
investment reduced
equity method income
Anhui Kaikai Shijie E-commerce Co., Ltd. 17,400,738.44
Kunshan Kangsheng Investment -3,617,175.94
222,683,160.16
Development Co., Ltd.
Chutian Dragon Co., Ltd. 647,490,626.93 141,928,645.31 22,575,475.16
Helongjiang Longkang Zhijia Technology
1,157,647.82 1,157,647.82
Co., Ltd.
Shaanxi Silk Road Cloud Intelligent Tech -779,528.80
14,113,227.58
Co., Ltd.
Shenzhen Kanghongxing Intelligent
Technology Co., Ltd.
Shenzhen Zhongbin Konka Technology Co.,
Ltd.
347
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Closing Balance of Gains and losses Adjustment of other
Investee Additional Investment
Last Year recognized under the comprehensive
investment reduced
equity method income
Shenzhen Kangjia Jiapin Intelligent Electrical 1,449,576.70
3,921,788.17
Apparatus Technology Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd. 60,453,041.59 61,777,797.03 1,324,755.44
Shenzhen Yaode Technology Co., Ltd.
Wuhan Tianyuan Environmental Protection 29,420,000.00
325,645,840.91
Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 13,097,210.11 354,361.82
Chuzhou Konka Technology Industry
5,899,324.39
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
15,251,484.01 157,735,900.00
Development Co., Ltd.
Nantong Kangjian Technology Industrial Park
Operations and Management Co., Ltd.
(formerly known as Haimen Kangjian 14,610,460.04 -8,984,779.08
Technology Industrial Park Operations and
Management Co., Ltd.)
Shenzhen Kangyue Enterprise Co., Ltd. 3,102,893.60 -103,801.99
Dongguan Guankang Yuhong Investment Co., -17,762,197.93
Ltd. (formerly known as Dongguan Konka 17,762,197.93
Investment Co., Ltd.)
Chongqing Yuanlv Benpao Real Estate Co., 261,753.11
-261,753.11
Ltd.
Chuzhou Kangxin Health Industry -1,966,765.00
12,801,830.75
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 36,574,609.73
348
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year
Closing Balance of Gains and losses Adjustment of other
Investee Additional Investment
Last Year recognized under the comprehensive
investment reduced
equity method income
Shenzhen Kangpeng Digital Technology Co., -2,291,365.10
5,702,518.20
Ltd.
Yantai Kangyun Industrial Development Co., -4,400,788.07
8,536,245.03
Ltd.
Shandong Econ Technology Co., Ltd. 823,028,634.77 85,859,095.13
Dongguan Kangjia New Materials 31,031.72
3,919,896.55
Technology Co., Ltd.
Chongqing YPFun Technology Co., Ltd.
(formerly known as Shenzhen E2info 124,903,499.07 3,392,368.43 42,233,038.78
Network Technology Co., Ltd.)
Sichuan Chengrui Real Estate Co., Ltd. 12,250,023.10 -4,398,830.84
Wuhan Kangtang Information Technology -295,049.70
26,950,000.00
Co., Ltd.
Total 2,377,795,122.67 196,935,923.10 208,256,458.59 138,908,805.41
(continued)
Increase/decrease this year Ending balance
Cash bonus or Withdrawal Ending balance of
Investee Other equity profits of
Others (Carrying value) depreciation reserve
changes announced to impairment
issue provision
Anhui Kaikai Shijie E-commerce Co., Ltd. 17,400,738.44
Kunshan Kangsheng Investment Development
219,065,984.22
Co., Ltd.
349
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year Ending balance
Cash bonus or Withdrawal Ending balance of
Investee Other equity profits of
Others (Carrying value) depreciation reserve
changes announced to impairment
issue provision
Chutian Dragon Co., Ltd. 4,410,993.60 523,726,463.18
Helongjiang Longkang Zhijia Technology Co.,
Ltd.
Shaanxi Silk Road Cloud Intelligent Tech Co.,
13,333,698.78
Ltd.
Shenzhen Kanghongxing Intelligent
5,158,909.06
Technology Co., Ltd.
Shenzhen Zhongbin Konka Technology Co.,
Ltd.
Shenzhen Kangjia Jiapin Intelligent Electrical
5,371,364.87
Apparatus Technology Co., Ltd.
Shenzhen Bosser New Materials Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Wuhan Tianyuan Environmental Protection
2,770,200.00 352,295,640.91
Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 883,869.41 12,567,702.52
Chuzhou Konka Technology Industry
5,899,324.39
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
172,987,384.01
Development Co., Ltd.
Nantong Kangjian Technology Industrial Park
Operations and Management Co., Ltd. 5,625,680.96
(formerly known as Haimen Kangjian
Technology Industrial Park Operations and
350
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year Ending balance
Cash bonus or Withdrawal Ending balance of
Investee Other equity profits of
Others (Carrying value) depreciation reserve
changes announced to impairment
issue provision
Management Co., Ltd.)
Shenzhen Kangyue Enterprise Co., Ltd. 2,999,091.61
Dongguan Guankang Yuhong Investment Co.,
Ltd. (formerly known as Dongguan Konka
Investment Co., Ltd.)
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Chuzhou Kangxin Health Industry
10,835,065.75
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 28,000,000.00 8,574,609.73
Shenzhen Kangpeng Digital Technology Co.,
3,411,153.10
Ltd.
Yantai Kangyun Industrial Development Co.,
4,135,456.96
Ltd.
Shandong Econ Technology Co., Ltd. 135,296,760.09 1,044,184,489.99
Dongguan Kangjia New Materials Technology
3,950,928.27
Co., Ltd.
Chongqing YPFun Technology Co., Ltd.
(formerly known as Shenzhen E2info Network 163,744,169.42
Technology Co., Ltd.)
Sichuan Chengrui Real Estate Co., Ltd. 7,851,192.26
Wuhan Kangtang Information Technology
26,654,950.30
Co., Ltd.
351
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Increase/decrease this year Ending balance
Cash bonus or Withdrawal Ending balance of
Investee Other equity profits of
Others (Carrying value) depreciation reserve
changes announced to impairment
issue provision
Total 135,296,760.09 36,065,063.01 2,604,615,089.67 219,718,378.41
352
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
4. Operating Revenue and Cost of Sales
（1） Operating Revenue and Cost of Sales
Amount incurred in this year Amount incurred last year
Item
Revenue Cost Revenue Cost
Primary
1,624,421,165.68 1,872,104,013.01 2,751,336,207.49 2,722,434,244.20
business
Others 187,362,353.34 90,386,351.96 115,465,441.34 79,070,595.04
Total 1,811,783,519.02 1,962,490,364.97 2,866,801,648.83 2,801,504,839.24
（2） Information in relation to the trade price apportioned to the residual contract performance
obligation:
The amount of income corresponding to the performance obligations of contracts signed but
not yet performed or fully performed was RMB2,393,728.63 at the year-end, among which
RMB2,393,728.63 is expected to be recognized in 2023.
5. Investment returns
Amount incurred in Amount incurred
Item
this year last year
Long-term equity investment income accounted by
125,381,404.76 43,610,748.17
cost method
Long-term equity investment income accounted by
138,908,805.41 94,791,865.50
equity method
Investment income from disposal of long-term
275,394,866.81 3,286,362,797.82
equity investment
Investment income from disposal of financial assets
32,839,604.17
at fair value through profit or loss
Interest income earned on investment in debt
4,640,244.26 7,060,000.00
obligations during the holding period
Others -5,378,929.04
Total 538,946,392.20 3,464,665,015.66
XVII. Approval of Financial Statements
The Financial Statement was released with the approval of the Company's Board of Directors on 24 March
2023.
353
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss this Year
Amount of current
Item Note
year
Gains/losses from the disposal of non-current assets 755,498,679.55
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
916,334,616.72
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 -5,378,929.04
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
-17,595,638.89
trading financial assets and liabilities, and derivative
financial assets and liabilities, and investment in other
obligatory rights, other than valid hedging related to the
354
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Amount of current
Item Note
year
Company’s common businesses
Reversal of provision for impairment test of receivables
32,624,581.58
and contract assets impairment
Gain/loss on entrustment loans 119,233,091.33
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
-97,161,898.46
above
Other profit and loss items in line with the definition of
non-recurring gains and losses
Subtotal 1,703,554,502.79
Less: Income tax effects 299,999,504.47
Minority shareholders' equity impact (after tax) 209,414,363.46
Total 1,194,140,634.86
（1） The explanation of the Company to “Project confirmed with the definition of non-recurring
gains and losses” and define non-recurring gains and losses as recurring gains and losses according to the
nature and features of normal business operations of company.
Item Amount Reason
Government subsidies which are closely related to the
Software tax normal business of the company and which are in
12,377,884.09
refund accordance with national policies and certain standard
quota or quantitative amount
2. Return on Equity and Earnings Per Share
355
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2022 to 31 December 2022 (all amounts in RMB yuan unless otherwise stated)
Weighted average EPS (RMB/share)
ROE (%) Diluted
Profit as of Reporting Period Basic earnings
Return on net assets earnings per
per share
(%) share
Net profit attributable to ordinary
-17.58 -0.6111 -0.6111
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after -31.85 -1.1070 -1.1070
deduction of non-recurring profit or loss
The Board of Directors
Konka Group Co., Ltd.
27 March 2023
356
