Konka Group Co., Ltd. Third Quarterly Report 2023
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2023-59
Bond Code: 114894, 133003 Bond Name: 21 Konka 01, 21 Konka 02
133040, 149987 21 Konka 03, 22 Konka 01
133306, 133333 22 Konka 03, 22 Konka 05
KONKA GROUP CO., LTD.
THIRD QUARTERLY REPORT 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
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Konka Group Co., Ltd. Third Quarterly Report 2023
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 to accounting policies
YoY YoY change
Q3 2022 Q1-Q3 2022
Q3 2023 change (%) Q1-Q3 2023 (%)
Before Restated Restated Before Restated Restated
Operating revenue (RM B) 4,404,631,998.81 7,700,546,365.26 7,700,546,365.26 -42.80% 14,876,693,170.75 24,596,016,642.07 24,596,016,642.07 -39.52%
Net profit attributable to the
listed company’s -521,630,694.97 -37,227,714.31 -36,399,344.07 -1,333.08% -714,870,927.30 135,590,724.52 136,867,098.45 -622.31%
shareholders (RM B)
Net profit attributable to the
listed company’s
shareholders before -486,155,733.41 -335,657,322.29 -334,828,952.05 -45.20% -1,377,750,103.82 -1,078,013,504.00 -1,076,737,130.07 -27.96%
exceptional gains and
losses (RM B)
Net cash generated
from/used in operating — — — — -322,441,824.76 -67,596,351.18 -67,596,351.18 -377.01%
activities (RM B)
Basic earnings per share
(RM B/share) -0.2166 -0.0155 -0.0152 -1,325.00% -0.2969 0.0563 0.0568 -622.71%
Diluted earnings per share
(RM B/share) -0.2166 -0.0155 -0.0152 -1,325.00% -0.2969 0.0563 0.0568 -622.71%
Weighted average return on
equity (%) -7.10% -0.41% -0.40% -6.70% -9.73% 1.48% 1.49% -11.22%
31 December 2022 Change (%)
30 September 2023
Before Restated Restated
Total assets (RM B) 38,337,653,005.04 38,016,368,073.05 38,027,575,163.66 0.82%
Equity attributable to the
listed company’s 7,057,196,968.92 7,640,399,721.99 7,641,975,956.16 -7.65%
shareholders (RM B)
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Konka Group Co., Ltd. Third Quarterly Report 2023
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 recognized 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.
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RM B
Item Q3 2023 Q1-Q3 2023 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
allowance write-offs) -53,968,800.63 180,474,900.02
Government grants through profit or loss (exclusive of government grants
continuously given in the Company’s ordinary course of business at fixed 37,608,896.69 180,799,942.96
quotas or amounts as per the government’s policies and standards)
Gain or loss on fair-value changes on held-for-trading financial assets and
liabilities & income from disposal of held-for-trading financial assets and
liabilities and available-for-sale financial assets (exclusive of the effective -51,807,502.59 -147,778,504.67
portion of hedges that arise in the Company’s ordinary course of business)
Gain or loss on loan entrustments 33,131,323.23 95,275,330.31
Non-operating income and expense other than the above -2,229,045.74 3,480,761.94
Other gains and losses that meet definition of nonrecurring gain/loss 584,664,150.75
Less: Income tax effects -10,555,553.64 215,667,563.28
Non-controlling interests effects (net of tax) 8,765,386.16 18,369,841.51
Total -35,474,961.56 662,879,176.52 --
Other items that meet the definition of exceptional gain/loss:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RM B)
As the company disposed of part of the equity of the subordinate participating
Trading companies, it no longer had a significant impact, resulting in a change in the accounting
584,164,150.75
financial assets method of the reporting period, from long-term equity investment (equity method) to
transactional financial assets, resulting in non-recurring profit and loss
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item Amount involved (RM B) Reason
Tax rebates on Government subsidies given in the Company’s ordinary course of business
4,309,814.75
software at fixed quotas or amounts as per government’s uniform standards
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Konka Group Co., Ltd. Third Quarterly Report 2023
(III) Changes in Key Financial Statement Line Items and Explanation
√ Applicable □ Not applicable
Unit: RM B
Percentage
Item 30 September 2023 1 January 2023 M ain reason for change
of change
Recovery of notes receivable in the Reporting
Notes receivable 652,341,788.21 1,059,737,243.54 -38.44%
Period
Increased notes receivable that were endorsed or
Receivables financing 395,169,133.71 237,187,228.44 66.61% discounted in the Reporting Period
Transfer of construction in progress to investment
Investment property 1,389,010,883.92 802,407,844.60 73.11%
property in the Reporting Period
Construction in Transfer of construction in progress to investment
1,166,007,217.85 1,990,361,377.07 -41.42%
progress property, fixed assets, etc. in the Reporting Period
Current portion of Reclassification of bonds payable and long-term
6,400,054,131.76 409,220,030.69 1,463.96%
non-current liabilities borrowings in the Reporting Period
Reclassification of bonds payable to the current
Bonds payable 2,427,442,201.30 4,792,392,044.13 -49.35% portion of non-current liabilities in the Reporting
Period
It is mainly the impact of recognizing deferred
Deferred income tax income tax liabilities on the income generated by
206,880,232.25 99,030,646.40 108.91%
liabilities transactional financial assets under the differences
in tax law and accounting law
Percentage
Item Q1-Q3 2023 Q1-Q3 2022 M ain reason for change
of change
Decreased revenue of the industry trade business
Operating revenue 14,876,693,170.75 24,596,016,642.07 -39.52%
during Q1-Q3 2023
Net profit attributable
to the listed Decreased other income, equity transfer income
-714,870,927.30 136,867,098.45 -622.31%
company’s and exchange gains during Q1-Q3 2023
shareholders
Finance costs 360,849,912.60 262,346,112.20 37.55% Exchange rate fluctuations
Net cash generated
from/used in -322,441,824.76 -67,596,351.18 -377.01% Decreased tax and levy rebates during Q1-Q3 2023
operating activities
Net cash generated
Decreased total investment amount during Q1-Q3
from/used in investing -64,712,448.47 -685,794,441.65 90.56%
2023
activities
Net cash generated
from/used in 250,756,759.78 45,280,066.04 453.79% Decreased interest expense during Q1-Q3 2023
financing activities
II Shareholder Information
(I) Numbers of Ordinary Shareholders and Preference Share holders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders 85,761 Number of preference shareholders with resumed voting rights (if any) 0
Top 10 shareholders
Shares in pledge,
Shareholdin Total shares Restricted
Name of shareholder Nature of shareholder marked or frozen
g percentage held shares held
Status Shares
OVERSEAS CHINESE TOWN
State-owned legal person 21.75% 523,746,932 0
HOLDINGS COM PANY
CITIC SECURITIES
BROKERAGE (HONG KONG) Foreign legal person 7.48% 180,001,110 0
CO., LTD.
WANG JINGFENG Domestic natural person 3.95% 95,000,000 0
GUOYUAN SECURITIES Foreign legal person 2.45% 58,927,225 0
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Konka Group Co., Ltd. Third Quarterly Report 2023
BROKER (HK) CO., LTD.
HOLY TIM E GROUP
Foreign legal person 2.38% 57,289,100 0
LIM ITED
GAOLING FUND,L.P. Foreign legal person 2.11% 50,894,250 0
NAM NGAI Foreign natural person 0.96% 23,000,000 0
CHINA M ERCHANTS
State-owned legal person 0.80% 19,314,220 0
SECURITIES (HK) LIM ITED
BOCOM INTERNATIONAL
Foreign legal person 0.78% 18,896,037 0
SECURITIES LIM ITED
ZHANG SUFEN Domestic natural person 0.62% 14,830,000 0
Top 10 unrestricted shareholders
Unrestricted Shares by class and number
Name of shareholder ordinary
Class Shares
shares held
OVERSEAS CHINESE TOWN HOLDINGS COM PANY 523,746,932 RM B-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 95,000,000 RM B-denominated ordinary share 95,000,000
GUOYUAN SECURITIES BROKER (HK) CO., LTD. 58,927,225 Domestically listed foreign share 58,927,225
HOLY TIM E GROUP LIM ITED 57,289,100 Domestically listed foreign share 57,289,100
GAOLING FUND,L.P. 50,894,250 Domestically listed foreign share 50,894,250
NAM NGAI 23,000,000 Domestically listed foreign share 23,000,000
CHINA M ERCHANTS SECURITIES (HK) LIM ITED 19,314,220 Domestically listed foreign share 19,314,220
BOCOM INTERNATIONAL SECURITIES LIM ITED 18,896,037 Domestically listed foreign share 18,896,037
ZHANG SUFEN 14,830,000 RM B-denominated ordinary share 14,830,000
Happy Bloom Investment Limited, a wholly -owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for
short), holds 180,001,110 and 18,360,000 ordinary shares in the Company
Related or acting-in-concert parties respectively through CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China
among shareholders above M erchants Securities (HK) Limited. Happy Bloom Investment Limited and Overseas
Chinese Town Holdings Company are parties acting in concert. Other than that, it is
unknown whether the other shareholders are related parties or acting-in-concert parties
or not.
Top 10 ordinary shareholders involved Wang Jingfeng holds 95,000,000 A-shares in the Company through his securities
in securities margin trading (if any) account for customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
(I) Offering of corporate bonds: The non-public offering of no more than RMB2.3 billion of
corporate bonds for professional investors has been approved by the Company’s shareholders’
general meeting, and the relevant matters are being pushed forward as planned.
(II) Initiation and establishment of funds: The total scale of the Oriental-Konka Industry M&A Fund
was 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, Shenzhen Konka
Investment Holding Co., Ltd. has contributed RMB487,344,000. The fund invested in Jiangxi
Yahua Electronic Materials Co., Ltd., Potron Technology Co., Ltd., etc.
The total scale of the Kunshan-CITIC-Konka Emerging Industry Development Investment Fund
was RMB1,006,000,000. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB500
million, accounting for 49.70% of the total units. By the date of this report, Shenzhen Konka
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Konka Group Co., Ltd. Third Quarterly Report 2023
Investment Holding Co., Ltd. has contributed RMB195.21 million. The fund invested in
UNIONTECH, Hercules Microelectronics Co., Ltd., etc.
The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was RMB500
million. Shenzhen Konka Investment Holding Co., Ltd. contributed RMB200 million, accounting
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.,
Allystar Technology (Shenzhen) Co., Ltd., etc.
The total scale of Yancheng Kangyan Industry Investment Fun was RMB3,000 million. Shenzhen
Konka Investment Holding Co., Ltd. and Shenzhen Konka Capital Equity Investment Management
Co., Ltd. contributed RMB1,201,500,000, 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 RMB217.36 million. The fund invested in
Anhui Zhongdian Xingfa and Xinlong Co., Ltd., Chongqing E2info Technology Co., Ltd., etc.
The total scale of Yibin Kanghui Electronic Information Industry Equity Investment Fund was
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 Chongqing E2info Technology Co., Ltd., etc.
The total scale of Chongqing Kangxin Equity Investment Fund was 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 Sha nghai VEIGLO
Information System Co., Ltd., Jiangxi Taide Wisdom Technology Co., Ltd., etc.
IV Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
30 September 2023
Unit: RM B
Item 30 September 2023 1 January 2023
Current assets:
M onetary assets 6,253,165,346.38 5,988,095,490.71
Settlement reserve
Loans to other banks and financial institutions
Held-for-trading financial assets 555,764,731.77
Derivative financial assets
Notes receivable 652,341,788.21 1,059,737,243.54
Accounts receivable 2,245,056,835.29 2,036,734,836.22
Receivables financing 395,169,133.71 237,187,228.44
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Konka Group Co., Ltd. Third Quarterly Report 2023
Prepayments 333,699,692.12 389,947,652.39
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,060,638,625.01 1,442,124,845.58
Including: Interest receivable 6,340,182.53 3,878,580.64
Dividends receivable 272,999.43
Financial assets purchased under resale agreements
Inventories 4,324,725,761.85 4,409,767,756.22
Contract assets 1,183,257.16
Assets held for sale
Current portion of non-current assets 3,630,000.00 14,630,000.00
Other current assets 2,525,824,854.75 2,038,841,225.83
Total current assets 18,351,200,026.25 17,617,066,278.93
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 800,400.00
Long-term equity investments 5,796,071,862.55 6,351,232,955.58
Investments in other equity instruments 23,841,337.16 23,841,337.16
Other non-current financial assets 2,118,128,277.14 2,639,662,273.32
Investment property 1,389,010,883.92 802,407,844.60
Fixed assets 4,802,969,626.15 4,114,029,693.38
Construction in progress 1,166,007,217.85 1,990,361,377.07
Productive living assets
Oil and gas assets
Right-of-use assets 174,439,722.67 50,019,838.68
Intangible assets 1,170,091,955.48 1,116,739,707.27
Development costs
Goodwill 22,196,735.11 22,196,735.11
Long-term prepaid expense 486,663,304.45 387,309,503.07
Deferred income tax assets 1,495,647,620.69 1,201,661,841.23
Other non-current assets 1,341,384,435.62 1,710,245,378.26
Total non-current assets 19,986,452,978.79 20,410,508,884.73
Total assets 38,337,653,005.04 38,027,575,163.66
Current liabilities:
Short-term borrowings 6,482,928,008.32 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 1,221,879,934.79 1,054,573,822.04
Accounts payable 2,547,454,181.25 2,659,946,562.93
Advances from customers 825.69
Contract liabilities 715,656,923.51 601,044,358.35
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 193,392,165.64 348,608,204.05
Taxes and levies payable 200,419,669.53 291,102,679.36
Other payables 1,780,160,011.33 1,895,711,373.34
Including: Interest payable 111,390.67 29,590,464.00
Dividends payable
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Konka Group Co., Ltd. Third Quarterly Report 2023
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 6,400,054,131.76 409,220,030.69
Other current liabilities 54,772,157.37 68,449,783.71
Total current liabilities 19,596,717,183.50 14,908,216,945.13
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7,340,692,541.83 8,906,931,402.89
Bonds payable 2,427,442,201.30 4,792,392,044.13
Including: Preference shares
Perpetual bonds
Lease liabilities 148,313,549.16 36,586,639.16
Long-term payables 6,675,505.17 7,964,127.18
Long-term employee benefits payable 4,748,631.27 4,894,209.73
Provisions 163,180,690.79 159,395,579.55
Deferred income 370,720,921.42 334,844,966.31
Deferred income tax liabilities 206,880,232.25 99,030,646.40
Other non-current liabilities 377,449,450.10 314,233,260.08
Total non-current liabilities 11,046,103,723.29 14,656,272,875.43
Total liabilities 30,642,820,906.79 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
Perpetual bonds
Capital reserves 495,476,795.47 365,247,361.05
Less: Treasury stock
Other comprehensive income -14,962,681.43 -14,265,181.63
Specific reserve
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General reserve
Retained earnings 2,924,557,082.64 3,638,868,004.50
Total equity attributable to owners of the Company as the parent 7,057,196,968.92 7,641,975,956.16
Non-controlling interests 637,635,129.33 821,109,386.94
Total owners’ equity 7,694,832,098.25 8,463,085,343.10
Total liabilities and owners’ equity 38,337,653,005.04 38,027,575,163.66
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
2. Consolidated Income Statement for Q1~Q3
Unit: RM B
Item Q1~Q3 2023 Q1~Q3 2022
1. Revenues 14,876,693,170.75 24,596,016,642.07
Including: Operating revenue 14,876,693,170.75 24,596,016,642.07
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 16,519,196,501.28 26,126,675,368.63
Including: Cost of sales 14,318,015,493.73 23,975,162,049.26
Interest expense
Fee and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
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Konka Group Co., Ltd. Third Quarterly Report 2023
Expenditure on policy dividends
Reinsurance premium expense
Taxes and levies 67,933,156.53 77,125,711.11
Selling expense 853,292,416.89 871,347,414.06
Administrative expense 562,127,977.91 577,188,118.60
R&D expense 356,977,543.62 363,505,963.40
Finance costs 360,849,912.60 262,346,112.20
Including: Interest expense 650,797,948.91 692,836,273.51
Interest income 202,850,169.71 190,309,274.96
Add: Other income 176,081,823.18 584,491,772.86
Return on investment (“-” for loss) 775,916,021.84 836,530,565.91
Including: Share of profit or loss of joint ventures and
-51,151,076.04 77,512,338.05
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) -191,419,983.75 21,962,896.84
Credit impairment loss (“-” for loss) -142,532,702.78 -61,242,970.31
Asset impairment loss (“-” for loss) -16,583,397.71 -13,523,962.19
Asset disposal income (“-” for loss) -15,911,644.20 12,420,007.06
3. Operating profit (“-” for loss) -1,056,953,213.95 -150,020,416.39
Add: Non-operating income 23,007,144.67 97,857,275.38
Less: Non-operating expense 12,873,372.03 6,543,182.17
4. Gross profit (“-” for loss) -1,046,819,441.31 -58,706,323.18
Less: Income tax expense -151,286,064.19 -73,526,196.93
5. Net profit (“-” for net loss) -895,533,377.12 14,819,873.75
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) -895,533,377.12 13,323,094.80
5.1.2 Net profit from discontinued operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the Company as the
-714,870,927.30 136,867,098.45
parent (“-” for net loss)
5.2.1 Net profit attributable to non-controlling interests (“-” for net
-180,662,449.82 -122,047,224.70
loss)
6. Other comprehensive income, net of tax -3,200,691.35 10,932,642.27
Attributable to owners of the Company as the parent -697,499.80 9,399,619.12
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 -697,499.80 9,399,619.12
6.2.1 Other comprehensive income that will be reclassified to
-209,777.61 -38,929.34
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
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Konka Group Co., Ltd. Third Quarterly Report 2023
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-
-487,722.19 9,438,548.46
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -2,503,191.55 1,533,023.15
7. Total comprehensive income -898,734,068.47 25,752,516.02
7.1 Attributable to owners of the Company as the parent -715,568,427.10 146,266,717.57
7.2 Attributable to non-controlling interests -183,165,641.37 -120,514,201.55
8. Earnings per share
8.1 Basic earnings per share -0.2969 0.0568
8.2 Diluted earnings per share -0.2969 0.0568
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RM B
Item Q1~Q3 2023 Q1~Q3 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 14,031,821,909.50 24,332,330,642.99
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 168,724,402.85 552,849,875.52
Cash generated from other operating activities 865,953,981.35 1,168,029,091.16
Subtotal of cash generated from operating activities 15,066,500,293.70 26,053,209,609.67
Payments for commodities and services 12,657,096,771.12 23,012,128,420.93
Net increase in loans and advances to customers
Net increase in deposits in the central bank and other banks and
financial institutions
Payments for claims on original insurance contracts
Net increase in loans to other banks and financial institutions
Interest, fees and commissions paid
Policy dividends paid
Cash paid to and for employees 1,356,531,982.05 1,434,144,605.34
Taxes and levies paid 361,381,640.24 371,845,155.79
Cash used in other operating activities 1,013,931,725.05 1,302,687,778.79
Subtotal of cash used in operating activities 15,388,942,118.46 26,120,805,960.85
Net cash generated from/used in operating activities -322,441,824.76 -67,596,351.18
2. Cash flows from investing activities:
Proceeds from disinvestment 1,120,024,435.49 439,435,929.17
Return on investment 105,809,502.45 102,584,188.29
Net proceeds from the disposal of fixed assets, intangible assets and
6,336,467.50 2,602,109.26
other long-lived assets
Net proceeds from the disposal of subsidiaries and other business 18,818,889.67 297,094,350.04
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Konka Group Co., Ltd. Third Quarterly Report 2023
units
Cash generated from other investing activities 568,418,046.33 2,593,171,830.43
Subtotal of cash generated from investing activities 1,819,407,341.44 3,434,888,407.19
Payments for the acquisition of fixed assets, intangible assets and other
1,369,507,381.23 3,242,155,154.65
long-lived assets
Payments for investments 6,000,000.00 578,662,796.46
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other business
units
Cash used in other investing activities 508,612,408.68 299,864,897.73
Subtotal of cash used in investing activities 1,884,119,789.91 4,120,682,848.84
Net cash generated from/used in investing activities -64,712,448.47 -685,794,441.65
3. Cash flows from financing activities:
Capital contributions received 1,816,216.81 76,748,000.00
Including: Capital contributions by non-controlling interests to
1,816,216.81 76,748,000.00
subsidiaries
Borrowings received 7,922,161,074.27 17,289,669,687.55
Cash generated from other financing activities 543,206,827.09 299,933,896.84
Subtotal of cash generated from financing activities 8,467,184,118.17 17,666,351,584.39
Repayment of borrowings 6,835,894,584.88 16,092,793,775.72
Interest and dividends paid 665,357,095.47 833,208,967.32
Including: Dividends paid by subsidiaries to non-controlling interests 735,000.00 28,420,000.00
Cash used in other financing activities 715,175,678.04 695,068,775.31
Subtotal of cash used in financing activities 8,216,427,358.39 17,621,071,518.35
Net cash generated from/used in financing activities 250,756,759.78 45,280,066.04
4. Effect of foreign exchange rates changes on cash and cash equivalents 37,092,762.35 61,441,973.08
5. Net increase in cash and cash equivalents -99,304,751.10 -646,668,753.71
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 5,362,607,259.80 5,321,678,465.32
(II) Adjustme nts to Financial State ment Items at the Beginning of the Year of the First
Implementation of the New Accounting Standards Implemented since 2023
√ Applicable □ Not applicable
Notes to adjustment
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 recognized 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.
(III) Independent Auditor’s Report
11
Konka Group Co., Ltd. Third Quarterly Report 2023
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
30 October 2023
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