Konka Group Co., Ltd. First Quarterly Report 2023
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2023-29
Bond Code: 114894, 133003 Bond Name: 21 Konka 01, 21 Konka 02
133040, 149987 21 Konka 03, 22 Konka 01
133306, 133333 22 Konka 03, 22 Konka 05
KONKA GROUP CO., LTD.
FIRST QUARTERLY REPORT 2023
Konka Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the
Company’s Board of Directors hereby guarantee that the contents of this Report are true, accurate
and complete and free of any misrepresentations, misleading statements or material omissions.
Important Notes:
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of the Company hereby guarantee that the contents of this
Report are true, accurate and complete and free of any misrepresentations, misleading statements
or material omissions, and collectively and individually accept legal responsibility for such
contents.
2. The Company’s legal representative, Chief Financial Officer (CFO), and head of the financial
department (equivalent to financial manager) hereby guarantee that the financial statements
carried in this Report are factual, accurate and complete.
3. Indicate by tick mark whether the financial statements in this Report have been audited by an
independent auditor.
□Yes √ No
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
√ Change of accounting policy □ Correction of accounting error □ Business combination
involving entities under common control □ Other reasons
Q1 2022 YoY change (%)
Q1 2023
Before Restated Restated
Operating revenue (RMB) 4,600,647,851.61 8,320,135,785.93 8,320,135,785.93 -44.70%
Net profit attributable to the listed
152,513,923.41 103,900,130.02 104,376,396.19 46.12%
company’s shareholders (RMB)
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Konka Group Co., Ltd. First Quarterly Report 2023
Net profit attributable to the listed
company’s shareholders before -521,453,718.40 -418,548,047.01 -418,071,780.84 -24.73%
exceptional gains and losses (RMB)
Net cash generated from/used in operating
-1,182,725,927.02 -630,928,798.94 -630,928,798.94 -87.46%
activities (RMB)
Basic earnings per share (RMB/share) 0.0633 0.0431 0.0433 46.19%
Diluted earnings per share (RMB/share) 0.0633 0.0431 0.0433 46.19%
Weighted average return on equity (%) 1.98% 1.13% 1.13% 0.85%
31 December 2022 Change (%)
31 March 2023
Before Restated Restated
Total assets (RMB) 38,345,572,552.50 38,016,368,073.05 38,027,575,163.66 0.84%
Equity attributable to the listed company’s
7,776,570,075.05 7,640,399,721.99 7,641,975,956.16 1.76%
shareholders (RMB)
Reason for change of accounting policy and correction of accounting error:
On 30 November 2022, the Ministry of Finance issued the Interpretation No. 16 for the
Accounting Standards for Business Enterprises, according to which the provision regarding the
"accounting treatments for deferred income taxes associated with assets and liabilities arising
from single transactions that are not subject to the initial recognition exemption” is effective for
the Company from 1 January 2023. For lease liabilities and right-of-use assets recognized at the
beginning of the earliest period for which the provision is first implemented as a result of the
single transactions to which the provision applies, if taxable temporary differences and deductible
temporary differences arise, the Company adjusts the cumulative effect to opening retained
earnings and other related financial statement items in the earliest period for which the financial
statements are presented in accordance with the aforesaid provision and the Accounting Standard
No. 18 for Business Enterprises—Income Tax.
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2023 Note
Gain/Loss arising from disposal of non-current assets (inclusive of impairment allowance
813,719,198.23
write-offs)
Government subsidies recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 47,710,326.17
government’s unified standards
Gain/Loss on changes in fair value arising from holding of trading financial assets and
liabilities and investment income from disposal of trading financial assets, financial
19,330,883.02
liabilities and available-for-sale financial assets other than effective hedge business related to
the Company’s normal operating businesses
Gain/loss on entrustment loans 29,102,953.29
Other non-operating income and expense other than the above -730,150.95
Less: Income tax effects 228,953,147.42
Non-controlling interests effects (after tax) 6,212,420.53
Total 673,967,641.81
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in
2
Konka Group Co., Ltd. First Quarterly Report 2023
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item Amount (RMB) Reason
Government grants continuously given in the Company’s ordinary
Tax rebates on software 1,173,279.11 course of business at fixed quotas or amounts as per the
government’s policies and standards
(III) Changes in Key Financial Statement Line Items and Explanation
√ Applicable □ Not applicable
Unit: RMB
Change
Item 31 March 2023 1 January 2023 Explanation of why
(%)
Accounts
Expiration of notes receivable for accounts
receivable 130,292,827.60 237,187,228.44 -45.07%
receivable financing in the Reporting Period
financing
During the reporting period, projects under
Investment construction were converted into investment real
1,411,935,815.98 802,407,844.60 75.96%
property estate, resulting in an increase in investment real
estate
Employee Payment of employee remunerations in the
164,854,050.74 348,608,204.05 -52.71%
benefits payable Reporting Period
Taxes payable 193,156,126.51 291,102,679.36 -33.65% Payment of taxes in the Reporting Period
Current portion Mature bonds payable and the current portion of
of non-current 4,447,600,623.73 409,220,030.69 986.85% non-current liabilities reclassified from long-term
liabilities borrowings in the Reporting Period
During the reporting period, the disposal of part of
Deferred income
261,413,172.81 99,030,646.40 163.97% Chutianlong Stock Co., Ltd. to recognize deferred
tax liabilities
income tax liabilities
Change
Item Q1 2023 Q1 2022 Explanation of why
(%)
During the reporting period, the company adjusted
Operating and optimized non-core businesses with weak
4,600,647,851.61 8,320,135,785.93 -44.70%
revenue coordination with the main business, resulting in a
decline in revenue scale
Income from equity disposal and influence of
Return on
816,925,419.92 356,591,250.76 129.09% accounting method changes of Chutian Dragon Co.,
investment
Ltd. in the Reporting Period
Net cash
generated During the reporting period, the increase in
from/used in -1,182,725,927.02 -630,928,798.94 -87.46% inventories resulted in the outflow of cash paid for
operating goods and services
activities
Net cash
generated YoY decrease in cash paid for purchasing fixed
from/used in -162,066,625.49 -587,891,465.97 72.43% assets, intangible assets and other long-term assets
investing in the Reporting Period
activities
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders 86,514 Number of preference shareholders with resumed voting rights (if any) 0
Top 10 shareholders
Restricted Shares in pledge,
Nature of Shareholding Total shares marked or frozen
Name of shareholder shares
shareholder percentage held
held Status Shares
OVERSEAS CHINESE TOWN State-owned legal 21.75% 523,746,932 0
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Konka Group Co., Ltd. First Quarterly Report 2023
HOLDINGS COMPANY person
CITIC SECURITIES BROKERAGE
Foreign legal person 7.48% 180,001,110 0
(HONG KONG) CO., LTD.
Domestic natural
WANG JINGFENG 4.15% 100,000,000 0
person
GUOYUAN SECURITIES BROKER
Foreign legal person 2.45% 58,927,225 0
(HK) CO., LTD.
HOLY TIME GROUP LIMITED Foreign legal person 2.38% 57,289,100 0
GAOLING FUND,L.P. Foreign legal person 2.19% 52,801,250 0
Foreign natural
NAM NGAI 0.96% 23,019,800 0
person
CHINA MERCHANTS SECURITIES State-owned legal
0.80% 19,314,220 0
(HK) LIMITED person
BOCOM INTERNATIONAL
Foreign legal person 0.78% 18,896,037 0
SECURITIES LIMITED
HONG KONG SECURITIES
Foreign legal person 0.63% 15,273,088 0
CLEARING COMPANY LTD.
Top 10 unrestricted shareholders
Unrestricted Shares by class
Name of shareholder ordinary
shares held Class Shares
OVERSEAS CHINESE TOWN HOLDINGS COMPANY 523,746,932 RMB-denominated ordinary share 523,746,932
CITIC SECURITIES BROKERAGE (HONG KONG)
180,001,110 Domestically listed foreign share 180,001,110
CO., LTD.
WANG JINGFENG 100,000,000 RMB-denominated ordinary share 100,000,000
GUOYUAN SECURITIES BROKER (HK) CO., LTD. 58,927,225 Domestically listed foreign share 58,927,225
HOLY TIME GROUP LIMITED 57,289,100 Domestically listed foreign share 57,289,100
GAOLING FUND,L.P. 52,801,250 Domestically listed foreign share 52,801,250
NAM NGAI 23,019,800 Domestically listed foreign share 23,019,800
CHINA MERCHANTS SECURITIES (HK) LIMITED 19,314,220 Domestically listed foreign share 19,314,220
BOCOM INTERNATIONAL SECURITIES LIMITED 18,896,037 Domestically listed foreign share 18,896,037
HONG KONG SECURITIES CLEARING COMPANY
15,273,088 RMB-denominated ordinary share 15,273,088
LTD.
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for short),
Related or acting-in-concert holds 180,001,110 and 18,360,000 ordinary shares in the Company respectively through
parties among shareholders CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants Securities (HK)
above Limited. Happy Bloom Investment Limited and Overseas Chinese Town Holdings Company
are parties acting in concert. Other than that, it is unknown whether the other shareholders are
related parties or acting-in-concert parties or not.
Top 10 shareholders involved in Wang Jingfeng holds 100,000,000 A-shares in the Company through his securities account
securities margin trading (if any) for customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
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Konka Group Co., Ltd. First Quarterly Report 2023
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
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.
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
31 March 2023
Unit: RMB
Item 31 March 2023 1 January 2023
Current assets:
Monetary assets 5,508,180,261.97 5,988,095,490.71
Settlement reserve
Loans to other banks and financial institutions
Held-for-trading financial assets 974,897,430.42
Derivative financial assets
Notes receivable 873,401,368.95 1,059,737,243.54
Accounts receivable 2,090,153,542.40 2,036,734,836.22
Receivables financing 130,292,827.60 237,187,228.44
Prepayments 348,297,818.38 389,947,652.39
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,472,738,008.32 1,442,124,845.58
Including: Interest receivable 4,691,969.53 3,878,580.64
Dividends receivable 272,999.43
Financial assets purchased under resale agreements
Inventories 4,923,487,671.20 4,409,767,756.22
Contract assets
Assets held for sale
Current portion of non-current assets 12,131,788.69 14,630,000.00
Other current assets 2,422,116,387.74 2,038,841,225.83
Total current assets 18,755,697,105.67 17,617,066,278.93
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 800,400.00 800,400.00
Long-term equity investments 5,830,552,477.38 6,351,232,955.58
Investments in other equity instruments 23,841,337.16 23,841,337.16
Other non-current financial assets 2,641,451,080.77 2,639,662,273.32
Investment property 1,411,935,815.98 802,407,844.60
Fixed assets 4,039,964,101.20 4,114,029,693.38
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Konka Group Co., Ltd. First Quarterly Report 2023
Construction in progress 1,415,725,086.39 1,990,361,377.07
Productive living assets
Oil and gas assets
Right-of-use assets 38,245,860.65 50,019,838.68
Intangible assets 1,081,992,209.96 1,116,739,707.27
Development costs
Goodwill 22,196,735.11 22,196,735.11
Long-term prepaid expense 510,239,917.35 387,309,503.07
Deferred income tax assets 1,279,102,703.17 1,201,661,841.23
Other non-current assets 1,293,827,721.71 1,710,245,378.26
Total non-current assets 19,589,875,446.83 20,410,508,884.73
Total assets 38,345,572,552.50 38,027,575,163.66
Current liabilities:
Short-term borrowings 7,065,682,875.16 7,579,559,304.97
Borrowings from the central bank
Loans from other banks and financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,055,892,081.93 1,054,573,822.04
Accounts payable 2,301,879,604.84 2,659,946,562.93
Advances from customers 825.69
Contract liabilities 712,146,964.36 601,044,358.35
Financial assets sold under repurchase agreements
Customer deposits and deposits from other banks and financial
institutions
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 164,854,050.74 348,608,204.05
Taxes and levies payable 193,156,126.51 291,102,679.36
Other payables 1,593,870,928.75 1,895,711,373.34
Including: Interest payable 29,627,245.69 29,590,464.00
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 4,447,600,623.73 409,220,030.69
Other current liabilities 78,098,011.79 68,449,783.71
Total current liabilities 17,613,181,267.81 14,908,216,945.13
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7,322,406,772.41 8,906,931,402.89
Bonds payable 3,738,967,976.95 4,792,392,044.13
Including: Preference shares
Perpetual bonds
Lease liabilities 31,784,224.41 36,586,639.16
Long-term payables 7,491,941.30 7,964,127.18
Long-term employee benefits payable 4,842,811.63 4,894,209.73
Provisions 192,586,085.71 159,395,579.55
Deferred income 325,256,711.48 334,844,966.31
Deferred income tax liabilities 261,413,172.81 99,030,646.40
Other non-current liabilities 311,712,735.60 314,233,260.08
Total non-current liabilities 12,196,462,432.30 14,656,272,875.43
Total liabilities 29,809,643,700.11 29,564,489,820.56
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preference shares
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Konka Group Co., Ltd. First Quarterly Report 2023
Perpetual bonds
Capital reserves 347,813,376.32 365,247,361.05
Less: Treasury stock
Other comprehensive income -15,311,006.86 -14,265,181.63
Specific reserve
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General reserve
Retained earnings 3,791,941,933.35 3,638,868,004.50
Total equity attributable to owners of the Company as the parent 7,776,570,075.05 7,641,975,956.16
Non-controlling interests 759,358,777.34 821,109,386.94
Total owners’ equity 8,535,928,852.39 8,463,085,343.10
Total liabilities and owners’ equity 38,345,572,552.50 38,027,575,163.66
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
2. Consolidated Income Statement
Unit: RMB
Item Q1 2023 Q1 2022
1. Revenues 4,600,647,851.61 8,320,135,785.93
Including: Operating revenue 4,600,647,851.61 8,320,135,785.93
Interest revenue
Insurance premium income
Fee and commission income
2. Costs and expenses 5,278,599,377.48 8,941,642,023.63
Including: Cost of sales 4,451,814,449.75 8,116,619,145.05
Interest costs
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 23,526,112.70 24,211,357.37
Selling expense 249,669,243.57 285,983,402.43
Administrative expense 200,548,687.25 168,812,302.22
R&D expense 106,353,742.77 119,366,703.91
Finance costs 246,687,141.44 226,649,112.65
Including: Interest costs 224,916,477.38 243,819,799.49
Interest revenue 59,467,053.77 52,821,276.29
Add: Other income 40,112,945.00 201,195,546.29
Return on investment (“-” for loss) 816,925,419.92 356,591,250.76
Including: Share of profit or loss of joint ventures and associates -16,602,829.69 39,261,474.65
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)
Credit impairment loss (“-” for loss) -2,853,517.25 2,597,264.26
Asset impairment loss (“-” for loss) -706,509.70 -1,299,627.80
Asset disposal income (“-” for loss) -265,897.79 6,760,995.88
3. Operating profit (“-” for loss) 175,260,914.31 -55,660,808.31
Add: Non-operating income 10,265,709.63 9,556,431.75
Less: Non-operating expense 2,437,470.87 940,039.98
4. Gross profit (“-” for loss) 183,089,153.07 -47,044,416.54
Less: Income tax expense 92,022,318.91 -79,188,796.00
5. Net profit (“-” for net loss) 91,066,834.16 32,144,379.46
5.1 By operating continuity
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Konka Group Co., Ltd. First Quarterly Report 2023
5.1.1 Net profit from continuing operations (“-” for net loss) 91,066,834.16 32,144,379.46
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the
152,513,923.41 104,376,396.19
parent
5.2.1 Net profit attributable to non-controlling interests -61,447,089.25 -72,232,016.73
6. Other comprehensive income, net of tax -305,458.61 -1,524,466.40
Attributable to owners of the Company as the parent -1,045,825.23 -1,067,773.17
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 -1,045,825.23 -1,067,773.17
6.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method
6.2.2 Changes in the fair value of other debt investments
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for other debt investments
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign currency-
-1,045,825.23 -1,067,773.17
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests 740,366.62 -456,693.23
7. Total comprehensive income 90,761,375.55 30,619,913.06
Attributable to owners of the Company as the parent 151,468,098.18 103,308,623.02
Attributable to non-controlling interests -60,706,722.63 -72,688,709.96
8. Earnings per share
8.1 Basic earnings per share 0.0633 0.0433
8.2 Diluted earnings per share 0.0633 0.0433
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
3. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2023 Q1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 4,577,159,145.45 8,562,218,536.27
Net increase in customer deposits and deposits from other banks
and financial institutions
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Premiums received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest, fees and commissions received
Net increase in loans from other banks and financial institutions
Net increase in proceeds from repurchase transactions
Net proceeds from acting trading of securities
Tax and levy rebates 64,819,428.29 74,729,863.58
Cash generated from other operating activities 121,196,319.41 350,880,406.46
Subtotal of cash generated from operating activities 4,763,174,893.15 8,987,828,806.31
Payments for commodities and services 4,794,630,422.89 8,525,783,311.94
Net increase in loans and advances to customers
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Konka Group Co., Ltd. First Quarterly Report 2023
Net increase in deposits in the central bank and other banks and
financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 571,153,686.19 608,845,622.58
Taxes and levies paid 186,102,399.10 87,268,734.60
Cash used in other operating activities 394,014,311.99 396,859,936.13
Subtotal of cash used in operating activities 5,945,900,820.17 9,618,757,605.25
Net cash generated from/used in operating activities -1,182,725,927.02 -630,928,798.94
2. Cash flows from investing activities:
Proceeds from disinvestment 277,786,299.25 43,513,336.72
Return on investment 39,420,914.22 19,721,203.55
Net proceeds from the disposal of fixed assets, intangible assets
1,578,239.32 723,375.00
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units 18,818,889.67 25,434,651.84
Cash generated from other investing activities 207,505,754.25 607,115,559.96
Subtotal of cash generated from investing activities 545,110,096.71 696,508,127.07
Payments for the acquisition of fixed assets, intangible assets and
363,745,861.03 868,492,619.15
other long-lived assets
Payments for investments 178,342,076.16
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 343,430,861.17 237,564,897.73
Subtotal of cash used in investing activities 707,176,722.20 1,284,399,593.04
Net cash generated from/used in investing activities -162,066,625.49 -587,891,465.97
3. Cash flows from financing activities:
Capital contributions received 345,946.00 35,012,000.00
Including: Capital contributions by non-controlling interests to
subsidiaries 345,946.00 35,012,000.00
Borrowings received 3,805,114,522.05 6,063,777,376.75
Cash generated from other financing activities 54,574,868.72 42,697,575.48
Subtotal of cash generated from financing activities 3,860,035,336.77 6,141,486,952.23
Repayment of borrowings 2,923,642,749.55 4,923,815,316.07
Interest and dividends paid 164,669,602.27 227,296,185.99
Including: Dividends paid by subsidiaries to non-controlling
interests
Cash used in other financing activities 127,611,602.55 193,931,979.72
Subtotal of cash used in financing activities 3,215,923,954.37 5,345,043,481.78
Net cash generated from/used in financing activities 644,111,382.40 796,443,470.45
4. Effect of foreign exchange rates changes on cash and cash
-7,901,003.24 1,805,449.90
equivalents
5. Net increase in cash and cash equivalents -708,582,173.35 -420,571,344.56
Add: Cash and cash equivalents, beginning of the period 5,461,912,010.90 5,968,347,219.03
6. Cash and cash equivalents, end of the period 4,753,329,837.55 5,547,775,874.47
(II) Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent
auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
Konka Group Co., Ltd
28 April 2023
9
