Konka Group Co., Ltd. Interim Report 2023 (Summary)
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2023-53
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.
INTERIM REPORT 2023 (SUMMARY)
Part I Important Notes
This Summary is based on the full Interim Report. In order for a full understanding of the operating
results, financial condition and future development planning of the Company, investors are kindly
reminded to read the full text carefully on the media designated by the China Securities Regulatory
Commission (the “CSRC”).
All the Company’s directors have attended the Board meeting for the review of this Report and its
summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
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.
Part II Key Corporate Information
1. Stock Profile
Stock name Konka Group-A, Konka Group-B Stock code 000016, 200016
Stock exchange for stock listing Shenzhen Stock Exchange
Changed stock name (if any) N/A
Contact information Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, Board Secretariat, 24/F, Konka R&D Center,
Office address
28 Keji South Twelfth Road, Science and 28 Keji South Twelfth Road, Science and
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Konka Group Co., Ltd. Interim Report 2023 (Summary)
Technology Park, Yuehai Street, Nanshan Technology Park, Yuehai Street, Nanshan
District, Shenzhen, Guangdong Province, District, Shenzhen, Guangdong Province,
China China
Tel. 0755-26609138 0755-26609138
E-mail address szkonka@konka.com szkonka@konka.com
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Change to accounting policies
H1 2022 Change (%)
H1 2023
Before Restated Restated
Operating revenue (RMB) 10,472,061,171.94 16,895,470,276.81 16,895,470,276.81 -38.02%
Net profit attributable to the listed
-193,240,232.33 172,818,438.83 173,266,442.52 -211.53%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -891,594,370.41 -742,356,181.71 -741,908,178.02 -20.18%
exceptional gains and losses (RMB)
Net cash generated from/used in
-201,550,105.24 -421,259,506.73 -421,259,506.73 52.16%
operating activities (RMB)
Basic earnings per share
-0.0803 0.0718 0.0720 -211.53%
(RMB/share)
Diluted earnings per share
-0.0803 0.0718 0.0720 -211.53%
(RMB/share)
Weighted average return on equity
-2.55% 1.87% 1.87% -4.42%
(%)
31 December 2022 Change (%)
30 June 2023
Before Restated Restated
Total assets (RMB) 38,925,419,822.05 38,016,368,073.05 38,027,575,163.66 2.36%
Equity attributable to the listed
7,522,168,237.68 764,039,9721.99 7,641,975,956.16 -1.57%
company’s shareholders (RMB)
Reason for change to accounting policies and correction of accounting errors:
On 30 November 2022, the Ministry of Finance issued Interpretation No. 16 for the Accounting
Standards for Business Enterprises, which stipulates the “accounting treatments for deferred
income taxes associated with assets and liabilities arising from a single transaction to which the
initial recognition exemption does not apply”, effective for the Company as of 1 January 2023.
For lease liabilities and right-of-use assets recognised at the beginning of the earliest period of
financial statement presentation in which the provision is first implemented that give rise to
taxable temporary differences and deductible temporary differences as a result of a single
transaction to which the provision applies, the Company has adjusted the cumulative effect to
retained earnings at the beginning of the earliest period of financial statement presentation and
other relevant financial statement items in accordance with the said provision and Accounting
Standard No. 18 for Business Enterprises—Income Tax.
3. Shareholders and Their Holdings as at the End of the Reporting Period
Unit: share
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Konka Group Co., Ltd. Interim Report 2023 (Summary)
Number of ordinary Number of preferred shareholders with resumed
85,260 0
shareholders voting rights (if any)
Top 10 shareholders
Shareh Shares in pledge, marked or
Nature of olding Number of Restricted frozen
Name of shareholder
shareholder percent shares shares
Status Shares
age
OVERSEAS CHINESE TOWN State-owned
21.75% 523,746,932 0
HOLDINGS COMPANY legal person
CITIC SECURITIES
Foreign
BROKERAGE (HONG KONG) 7.48% 180,001,110 0
legal person
CO., LTD.
Domestic
WANG JINGFENG natural 4.15% 100,000,000 0
person
GUOYUAN SECURITIES Foreign
2.45% 58,927,225 0
BROKER (HK) CO., LTD. legal person
Foreign
HOLY TIME GROUP LIMITED 2.38% 57,289,100 0
legal person
Foreign
GAOLING FUND,L.P. 2.19% 52,801,250 0
legal person
Foreign
NAM NGAI natural 0.96% 23,000,000 0
person
CHINA MERCHANTS State-owned
0.80% 19,314,220 0
SECURITIES (HK) LIMITED legal person
BOCOM INTERNATIONAL Foreign
0.78% 18,896,037 0
SECURITIES LIMITED legal person
Domestic
ZHANG SUFEN natural 0.55% 13,360,000 0
person
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
Related or acting-in-
18,360,000 ordinary shares in the Company respectively through CITIC Securities Brokerage (Hong
concert parties among
Kong) Co., Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment Limited and
shareholders above
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.
Shareholders
Wang Jingfeng holds 100,000,000 A-shares in the Company through his securities account for
conducting margin
customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
trading (if any)
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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Konka Group Co., Ltd. Interim Report 2023 (Summary)
6. Outstanding Bonds at the Date when this Report Was Authorized for Issue
√ Applicable □ Not applicable
(1) Basic Information of Bonds
Bonds
balance Coupo
Name Abbr. Code Issue date Due date
(RMB’0,000 n rate
)
Privately placed corporate bonds in 2021 of 8 January 8 January
21 Konka 01 114894 100,000.00 4.46%
Konka Group Co., Ltd (Tranche I) 2021 2024
Privately placed corporate bonds in 2021 of 21 May 21 May
21 Konka 02 133003 50,000.00 4.00%
Konka Group Co., Ltd (Tranche II) 2021 2024
Privately placed corporate bonds in 2021 of 9 July
21 Konka 03 133040 9 July 2024 80,000.00 3.95%
Konka Group Co., Ltd (Tranche III) 2021
Corporate bonds publicly offered to
14 July 14 July
professional investors in 2022 of Konka 22 Konka 01 149987 120,000.00 3.23%
2022 2025
Group Co., Ltd. (Tranche I) (Variety I)
Privately placed corporate bonds offered to 8 8
professional investors in 2022 of Konka 22 Konka 03 133306 September September 60,000.00 3.30%
Group Co., Ltd (Tranche I) (Variety I) 2022 2025
Privately placed corporate bonds offered to
18 October 18 October
professional investors in 2022 of Konka 22 Konka 05 133333 60,000.00 3.50%
2022 2025
Group Co., Ltd (Tranche II)
(2) Financial Indicators as at the End of the Reporting Period
Item 30 June 2023 31 December 2022
Debt/asset ratio 78.93% 77.74%
H1 2023 H1 2022
EBITDA-to-interest cover (times) 0.89 1.72
Part III Significant Events
During the Reporting Period, the Company focused on the core businesses of "Consumer
Electronics + Semiconductor", adhered to professional platform-based operation, implemented lean
management, advocated long-term value and worked to improve its financial results. Also, efforts
were made to strengthen competitiveness in the market and accelerate the transformation from
"Konka Electronics" to "Konka Technology". The Company, during the Reporting Period, promoted
business restructuring by optimising part of non-core business which failed to coordinate with the
main business and had low gross margin. The scale of the industry trade business dropped
significantly year-on-year, resulting in a certain decrease of the Company's operating revenue.
Affected by the following factors, the Company recorded a net loss attributable to its shareholders
in the first half of 2023:
(I) The gross margin of the colour TV business declined year-on-year, due to shrunken industry
scale, increased cost of the supply chain, the product sales structure in the adjustment phase.
1. The domestic scale of the colour TV industry kept decreasing. The recovery of the domestic scale
of the colour TV industry in the first half of 2023 did not meet expectations. Due to the decreased
market scale, both the revenue and total gross margin of the Company's colour TV business in
China fell year-on-year in the first half of 2023.
2. The increased cost of the upstream supply chain led to a decrease in the Company's gross margin
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Konka Group Co., Ltd. Interim Report 2023 (Summary)
in the colour TV OEM business: The first half of 2023 witnessed an increase in the income scale of
the Company's colour TV OEM business. Nevertheless, the orders delivered in the period suffered
from decreased gross margin, due to the increased cost of the upstream supply chain, which resulted
in a decrease in the total gross margin of the Company's OEM business.
3. The product sales structure of colour TVs is in the adjustment phase. In order to keep up with
market demands, for the colour TV business, the Company is gradually adjusting its product
planning and sales strategies toward highly frequent demands, such as big screens, high fresh rates,
and new display technologies. (Big screens are bigger than 65 inches (inclusive). High fresh rates
exceed 120Hz (inclusive). Examples of new display technologies are Micro LEDs and Mini LEDs.)
Even so, the sales scale and total gross margin of the colour TV business were influenced, as new
colour TV products were in the introduction phase and marketing strategies were in the adjustment
phase in the first half of 2023.
(II) The Company's semiconductor business was still at the initial phase of industrialisation during
the Reporting Period. In other words, the output did not meet the requirements in scale and benefits,
which affected the Company's overall operating profit.
(III) Income was gained from the Company's projects in the industrial parks in Shangrao City,
Jiangxi Province, Shaoxing City, Zhejiang Province, and Yibin City, Sichuan Province in the first
half of 2023. The Company reduced its business in industrial parks in this period, in combination of
its development strategies and the macro-economic environment. Therefore, the relevant income
decreased year-on-year.
The Board of Directors
Konka Group Co., Ltd.
25 August 2023
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