Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Konka Group Co., Ltd.
Report for the First Quarter of 2014
2014-18
Apr. 2014
1
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee as well as all
directors, supervisors and senior management staff of Konka Group Co.,
Ltd. (hereinafter referred to as “the Company”) warrant that this report
is factual, accurate and complete without any false record, misleading
statement or material omission. And they shall be jointly and severally
liable for that.
Except for the following Directors, the others attended the board session
for reviewing this report.
Name of Directors not Position of Directors not Reason of not attending
attended the board attended the board the boars session in Name of mandatory
session in person session in person person
Wang Xiaowen Director On a business trip Wu Siyuan
Wu Siyuan, Company Principal, Yang Rong, Chief of the Accounting Work,
and Xu Youshan, Chief of the Accounting Organ (Chief of Accounting),
hereby confirm that the financial statements enclosed in this report are
factual, accurate and complete.
This report is prepared in both Chinese and English. Should there be any
discrepancy between the two versions, the Chinese version shall prevail.
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Section II. Financial Highlights & Change of Shareholders
I. Major accounting data and financial indexes
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
□ Yes √ No
YoY increase/decrease
Jan.-Mar. 2014 Jan.-Mar. 2013
(%)
Operating revenues (RMB Yuan) 4,049,737,785.15 4,806,314,071.49 -15.74%
Net profit attributable to
shareholders of the Company (RMB 9,522,762.31 14,242,614.75 -33.14%
Yuan)
Net profit attributable to
shareholders of the Company after
149,469.07 -5,211,332.98 102.87%
extraordinary gains and losses (RMB
Yuan)
Net cash flows from operating
935,058,191.82 457,336,811.79 104.46%
activities (RMB Yuan)
Basic EPS (RMB Yuan/share) 0.0079 0.0118 -33.05%
Diluted EPS (RMB Yuan/share) 0.0079 0.0118 -33.05%
Weighted average ROE (%) 0.23% 0.35% -0.12%
31 Mar. 2014 31 Dec. 2013 Increase/decrease (%)
Total assets (RMB Yuan) 16,046,574,202.72 15,743,284,335.49 1.93%
Net assets attributable to
shareholders of the Company (RMB 4,088,537,577.61 4,080,458,151.63 0.2%
Yuan)
Items and amounts of extraordinary gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Item Amount as of Jan.-Mar. 2014 Note
Gains/losses on the disposal of non-current assets (including the
-947,183.34
offset part of the asset impairment provisions)
Government grants recognized in the current period, except for
those acquired in the ordinary course of business or granted at
8,264,258.99
certain quotas or amounts according to the government’s unified
standards
Non-operating income and expense other than the above 2,210,406.53
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Other gain and loss items that meet the definition of an extraordinary
1,245,374.19
gain/loss
Less: Income tax effects 1,451,134.70
Minority interests effects (after tax) -51,571.57
Total 9,373,293.24 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition
in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
II. Total number of shareholders at the period-end and shares held by the top ten
shareholders
Unit: share
Total number of shareholders at
85,726
the period-end
Shares held by the top ten shareholders
Shareholding Number of the Pledged or frozen shares
Name of Nature of Number of the
percentage restricted Status of Number of
shareholder shareholder shares held
(%) shares held shares shares
Pledged 0
OCT ENTERPRISES State-owned
19% 228,754,783 198,381,940
CO. corporation 0
Frozen
HOLY TIME GROUP Pledged 0
Foreign
4.9% 59,001,100 0
LIMITED corporation 0
Frozen
GAOLING FUND, Foreign Pledged 0
2.19% 26,400,625 0
L.P. corporation Frozen 0
China Resources Domestic Pledged 0
SZITIC — non-state-ow
1.93% 23,238,965 0
Extraordinary ned Frozen 0
No.18 Fund Trust corporation
Domestic Pledged 0
Sun Zhenxiang natural 1.2% 14,456,488 0
Frozen 0
person
Hwabao Trust Domestic Pledged 0
Co., Ltd.—Sole non-state-ow
1.17% 14,093,200 0
Fund Trust ned Frozen 0
R2007ZX037 corporation
NAM NGAI Foreign 0.97% 11,690,520 0 Pledged 0
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
natural
Frozen 0
person
Domestic Pledged 0
Li Yichao natural 0.48% 5,733,081 0
Frozen 0
person
Domestic Pledged 0
Xia Rui natural 0.42% 5,006,500 0
Frozen 0
person
Zhongrong Pledged 0
Domestic
International
non-state-ow
Trust—Rongjin 0.25% 3,059,123 0
ned Frozen 0
No.23 Fund Trust
corporation
Contract
Shares held by the top ten non-restricted share holders
Type of shares
Name of shareholder Number of non-restricted shares held
Type Number
Domestically
listed
HOLY TIME GROUP LIMITED 59,001,100 59,001,100
foreign
shares
RMB ordinary
OCT ENTERPRISES CO. 30,372,843 30,372,843
shares
Domestically
listed
GAOLING FUND, L.P. 26,400,625 26,400,625
foreign
shares
China Resources SZITIC — RMB ordinary
23,238,965 23,238,965
Extraordinary No.18 Fund Trust shares
RMB ordinary
Sun Zhenxiang 14,456,488 14,456,488
shares
Hwabao Trust Co., Ltd.—Sole RMB ordinary
14,093,200 14,093,200
Fund Trust R2007ZX037 shares
Domestically
listed
NAM NGAI 11,690,520 11,690,520
foreign
shares
RMB ordinary
Li Yichao 5,733,081 5,733,081
shares
RMB ordinary
Xia Rui 5,006,500 5,006,500
shares
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Zhongrong International Trust RMB ordinary
3,059,123 3,059,123
— Rongjin No.23 Fund Trust shares
Contract
The first majority shareholder OVERSEAS CHINESE TOWN ENTERPRISES CO. has
Explanation on associated
no related-party relationship with other shareholders and they are not
relationship or persons acting
acting-in-concert parties, either. Except for that, the Company does not
in concert among the
know whether the other shareholders are related parties and whether they
above-mentioned shareholders
are acting-in-concert parties.
Top 10 shareholders taking part
A shares shareholder—Sun Zhenxiang held 14,456,488 shares through customer
in margin financing and
credit trading collateral securities account of GF Securities Co., Ltd.
securities lending (if any)
Did any shareholder of the Company carry out an agreed buy-back in the reporting period?
□ Yes √ No
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Section III. Significant Events
I. Significant changes of the major accounting statement items and financial
indicators for the reporting period, as well as the reasons for these changes
(I) In the reporting period, our strategy of transformation towards Internet produced initial
results, with an improved product structure and a larger proportion of intelligent TVs in the
sales. However, affected by the decrease of the sales volume and sales in the color TV market,
the sales income of our color TV business decreased to some degree, leading to a decrease in
profit.
(II) In the reporting period, we worked harder on the transformation towards Internet, with
details as follows:
1. We unveiled the E-strategy to build an intelligent TV-Internet operation platform.
With high responsiveness and being always one among the first to notice the development trends
in the industry, we put forward to build the first intelligent TV-Internet operation platform
in China. We not only could deepen the intelligent TV division to include content production
and distribution platforms, but also were likely to build the largest precision marketing platform
of it to achieve maximum value. Under this strategic goal, we put forward the strategic slogan
of “E-dominance” and unveiled the Group’s E-strategy for the first time. The E-strategy consists
of two cores—E-end and E-platform, the “1+1 Strategy” for short. “E-end” refers to the
extremely easy-to-use TV intelligent end, the household internet control center. “E-platform”
refers to the open and easily enjoyable intelligent TV Internet operation. For Konka, E-end is
the technical support and hardware basis for E-platform; and E-platform is E-end in the aggregate,
platform and internet forms. E-platform is the future of the Company, and the most important
product in the future.
Konka E-platform is a fully open platform for content and application suppliers in the vertical
direction and for counterparts in the horizontal direction. In the vertical direction, E-platform
is a platform of information renewal. Through information exchange among users on E-platform,
we can analyze and integrate data and renew information to help explore new production functions,
application contents and business modes, which helps form an interest community of the
up-and-down-stream industries. In the horizontal direction, E-platform helps us study the big
picture of the TV industry and promotes the formulation of exchange standards in the industry.
In this way, it will grow into a more convenient, faster and stronger operation platform, as
well as the hub with the richest contents and applications and a highland for added value.
2. The Company proactively searched for opportunities to strengthen foreign corporation such
as the Internet and application content.
The Company achieved strategic corporation with Youku Tudou Group and the latter offered video
software services for the Internet TV promoted by the Company and implanted the function and
service of Youku TV App into the full line of products of the Company.
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
3. The Company launched new intelligent TV products.
(1) The Company released three series of smart TV--“Easyterminal” which considered “Easy to
Use” as the core: Yixuan 9800 Series, Yiku 1800 Series and Yicai 6600/6800.
(2) According to the “1+1 Strategy” mode of the “Easyterminal+Easyplatform”, the Company
released 4 KKTV new products including 42 inches K70U, 49 inches K70A, 49 inches K70U and 49
inches K70T, which further expanded the product line layout of KKTV.
(III) Change of other main financial indicators: Unit:RMB ten thoudsand yuan
Opening Amount of Ratio of change
Item Closing amount Main reasons for change
amount change (%)
Prepayments 68,683.49 16,427.29 52,256.20 318.11% Prepayments for land
Taxes and fares Deductible input tax
-4,380.63 -9,467.05 5,086.42 53.73%
payable decreased.
Subsidiaries secured
Long-term
31,617.69 500.00 31,117.69 6,223.54% more long-term
borrowings
borrowings.
Financial
5,699.61 2,671.61 3,028.00 113.34% Exchange loss increased.
expenses
Investment gain on
Investment gain 217.43 -410.53 627.96 152.96%
associates increased.
Cash paid to
acquire fixed
assets,
55,476.39 6,029.73 49,446.66 820.05% Prepayments for land
intangible assets
and other
long-term assets
II. Progress and influence of significant events, as well as the analysis and
explanation on solutions
(I) Progress of urban renewal projects of the Company headquarters
According to the application of the Company, The Restructuring Office of Chengzhong Village in
Nanshan District of Shenzhen issued the Circular of the Main Implementer of the Renewal Project
of the Headquarters of Konka Group in Nanshan District, Shenzhen in Nov. 2012, which publicized
Konka Group as the main implementer of the Renewal Project of the Headquarters of Konka Group.
In Aug. 2013, OCT Group Co., Ltd. submitted the Comment Letter about Opposing Konka as the Sole
Implementer of Plant Renewal of the Headquarters of Konka Group Project and according to this,
the Restructuring Office of Chengzhong Village in Nanshan District of Shenzhen issued the Comment
Letter about Konka as Main Implementer of Plant Renewal of the Headquarters of Konka Group Project
in Aug., which put forward the related procedures should be suspended and dealt with after the
OCT Group Co., Ltd and the Company negotiating the solutions.
Since then, although through negotiated by the relevant parties, there had not reached consensus
on “ whether Konka has the right to be as the sole implementer of plant renewal of the
headquarters”.
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
For solving the divergence as soon as possible and to promote the execution of the renewal project
of headquarters of Konka Group, after the research of the 53rd Session of the 7th Board of Directors
held on 28 Feb. 2014, the Company decided to summit the dispute about “whether Konka has the
right to be as the sole implementer of plant renewal of the headquarters ” to Shenzhen
International Court of Arbitration for arbitration. The Company had summated the relevant
application documents of arbitration to Shenzhen International Court of Arbitration and the
latter planed to hold a hearing of this case in its securities arbitration tribunal at 3pm on
16 Apr. 2014 (Thursday).
Because the Company had decided to summit the dispute about the main developer of the headquarters
of Konka Group for arbitration, the related departments in Shenzhen agreed the Company to hand
in the land accounts of the renewal project of the headquarter of Konka Group in advance. The
2nd Administration Bureau directly under the Urban Planning, Land and Resources Commission of
Shenzhen Municipality issued anew of the Shenzhen State-owned Land Use Right Transfer Income
Payment Notice which verified that the total fees of the renewal of the headquarters of Konka
Group was of RMB 1,492,931,087.
For promoting the execution of the renewal project of the headquarters of Konka Group, after
the research of the 54th Session of the 7th Board of Directors, the Company decided to pay for
the land accounts of the renewal project of headquarters of Konka Group in advance according
to the requirements of the related government departments by the Konka Group before the
arbitration results came out.
If the related arbitration institutions affirmed that the Konka Group had the right to be as
the sole developer of the project, the Konka Group should continued to execute; if the arbitration
institutions affirmed that it had no right to be as the sole developer, the Konka Group and the
OCT Group Co., Ltd. should make an additional statement of the cooperative development materials
separately according to the cooperative development plan achieved by the negotiation of the both
parties and conduct the transfer procedures of the project site according to the bilateral
agreement and share the paid land prices.
(II) Index to announcements on significant events
Index to the relevant announcement
Overview of the significant event Date of disclosure
disclosed on the website
Announcement on the Resolution of http://www.cninfo.com.cn/finalpa
th th
3 Jan. 2014
the 50 Session of the 7 Board of ge/2014-01-03/63442676.PDF
Directors
Announcement on the Resignation of http://www.cninfo.com.cn/finalpa
11 Jan. 2014
the Vice President of the Company ge/2014-01-11/63473432.PDF
Announcement on the Resolution of http://www.cninfo.com.cn/finalpa
rd th
1 Mar. 2014
the 53 Session of the 7 Board of ge/2014-03-01/63620067.PDF
Directors
Announcement on Significant http://www.cninfo.com.cn/finalpa
1 Mar. 2014
Arbitration ge/2014-03-01/63620918.PDF
Announcement on the Resolution of http://www.cninfo.com.cn/finalpa
th th
7 Mar. 2014
the 54 Session of the 7 Board of ge/2014-03-07/63645662.PDF
Directors
Announcement on the Progress of the http://www.cninfo.com.cn/finalpa
7 Mar. 2014
Declaration of the Renewal Plan ge/2014-03-07/63645661.PDF
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Announcement on Arrival of Tax http://www.cninfo.com.cn/finalpa
27 Mar. 2014
Rebates ge/2014-03-27/63730510.PDF
III. Commitments made by the Company or shareholders holding over 5% of the Company’
s shares in the reporting period or such commitments carried down into the reporting
period
Time of
Commitment Period of
Commitment Contents making Fulfillment
maker commitment
commitment
Commitments made in a share reform Naught
Commitments made in an acquisition Naught
report or a report on equity changes
Commitments made in asset Naught
reorganization
Commitments made in the first Naught
public offering or refinancing.
Other commitments made to minority Naught
shareholderstime or not?
Executed in Yes
Detailed reason for failing to
execute and the plan for the next Inapplicable
step (If any)
IV. Predict the operating results from Jan.-Jun. of 2014
Warnings of possible loss or large-margin change of the accumulated net profit made during the period from the
beginning of the year to the end of the next reporting period compared with the same period of the last year
according to prediction, as well as explanations on the reasons
□Applicable √Inapplicable
V. Securities investment
Initia Number Shareh Number Shareh Gain/l
l of olding of olding Closin oss
Variet Code
Name of invest shares percen shares percen g book for Accoun Source
y of of
securi ment held tage held tage value report ting of
securi securi
ties cost at at at at (RMB period title stock
ties ties
(RMB period period period period Yuan) (RMB
Yuan) -begin -begin -end -end Yuan)
Availa Subscr
ble-fo iption
2,311, 117,31 117,31 949,03
Stock 000002 Vanke A 0% 0% 0.00 r-sale of ad
748.07 0 0 7.90
finan dition
cial a al iss
10
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
ssets ue
Other securities
investment holding at the 0.00 0 -- 0 -- -- --
period-end
2,311, 117,31 117,31 949,03
Total -- -- 0.00 -- --
748.07 0 0 7.90
Disclosure date of the 30 Aug. 2007
board announcement on
Disclosure date of the
general meeting
announcement on approval Inapplicable
of the securities
investment (if any)
Shareholdings in other listed companies
□Applicable √Inapplicable
VI. Investments in derivatives
Unit: RMB Ten thousand Yuan
Propor
tion
of the
closin
g
Relate Impair Actual
Type of Initia Openin Closin invest
d-part ment gain/l
deriva l g g ment
Operat Relati y Start Ending provis oss in
tive invest invest invest amount
or on transa date date ion report
invest ment ment ment in the
ction (if ing
ment amount amount amount Compan
or not any) period
y’s
closin
g net
assets
(%)
Naught Naught No Naught 0 0 0 0 0% 0
Total 0 -- -- 0 0 0 0% 0
Capital source for derivative
Inapplicable
investment
Cases involving lawsuit (if
Inapplicable
applicable)
Disclosure date of the board Inapplicable
announcement approving the wealth
Disclosure date of the general Inapplicable
management entrustment (if any)
11
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Analysis on risks and control
measures of derivative products
held in the reporting period
(including but not limited to Inapplicable
market risk, liquidity risk, credit
risk, operation risk, law risk,
etc.)
Changes of market prices or fair
values in the reporting period of
the invested derivatives. And the
analysis on the fair value of the
Inapplicable
derivatives should include the
specific use methods and the
relevant assumptions and
parameters.
Whether significant changes
occurred to the Company’s
accounting policy and specific
accounting principles of Inapplicable
derivatives in the reporting period
compared to the previous reporting
period
Specific opinion from independent
directors on the Company’s
Inapplicable
derivatives investment and risk
control
VII. Researches, visits and interviews received in the reporting period
Main discussion and
Time of Place of Way of
Visitor type Visitor materials provided by
reception reception reception
the Company
Naught Naught Other Other Naught Naught
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Section IV. Financial Statements
I. Financial statements
1. Consolidated balance sheet
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 3,081,491,524.74 1,843,743,089.94
Settlement reserves 0.00
Intra-group lendings 0.00
Transactional financial
0.00
assets
Notes receivable 3,675,603,804.65 4,150,779,374.32
Accounts receivable 1,867,066,658.58 2,460,996,984.92
Accounts paid in advance 686,834,907.48 164,272,929.59
Premiums receivable 0.00
Reinsurance premiums
0.00
receivable
Receivable reinsurance
0.00
contract reserves
Interest receivable 6,730,721.33 2,898,419.90
Dividend receivable 0.00
Other accounts receivable 285,234,557.88 298,749,414.95
Financial assets purchased
0.00
under agreements to resell
Inventories 3,085,309,631.43 3,582,669,024.26
Non-current assets due within
0.00
1 year
Other current assets 0.00
Total current assets 12,688,271,806.09 12,504,109,237.88
Non-current assets:
Loans by mandate and advances
0.00
granted
Available-for-sale financial 949,037.90 941,999.30
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Report for the First Quarter of 2014 of Konka Group Co., Ltd.
assets
Held-to-maturity investments 0.00
Long-term accounts receivable 0.00
Long-term equity investment 448,329,772.69 446,155,499.42
Investing property 236,584,561.46 237,986,524.12
Fixed assets 2,014,540,354.68 1,908,503,979.80
Construction in progress 62,232,435.11 49,924,027.97
Engineering materials 0.00
Disposal of fixed assets 0.00
Production biological assets 0.00
Oil-gas assets 0.00
Intangible assets 356,790,325.42 359,585,571.12
R&D expense 0.00
Goodwill 3,943,671.53 3,943,671.53
Long-term deferred expenses 12,492,140.67 13,405,084.94
Deferred income tax assets 222,440,097.17 218,728,739.41
Other non-current assets 0.00
Total of non-current assets 3,358,302,396.63 3,239,175,097.61
Total assets 16,046,574,202.72 15,743,284,335.49
Current liabilities:
Short-term borrowings 5,942,289,449.92 5,239,069,764.48
Borrowings from Central Bank 0.00
Customer bank deposits and due
to banks and other financial 0.00
institutions
Intra-group borrowings 0.00
Transactional financial
0.00
liabilities
Notes payable 595,077,612.69 565,137,790.84
Accounts payable 2,773,491,300.72 3,341,804,144.12
Accounts received in advance 408,388,325.75 482,716,035.68
Financial assets sold for
0.00
repurchase
Handling charges and
0.00
commissions payable
14
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Employee ’ s compensation
250,292,611.91 332,090,987.76
payable
Tax payable -43,806,259.35 -94,670,496.91
Interest payable 41,287,852.77 34,945,870.48
Dividend payable 0.00 0.00
Other accounts payable 1,312,776,359.45 1,391,396,130.97
Reinsurance premiums payable 0.00
Insurance contract reserves 0.00
Payables for acting trading of
0.00
securities
Payables for acting
0.00
underwriting of securities
Non-current liabilities due
1,356,837.03 1,755,444.00
within 1 year
Other current liabilities 0.00
Total current liabilities 11,281,154,090.89 11,294,245,671.42
Non-current liabilities:
Long-term borrowings 316,176,909.95 5,000,000.00
Bonds payable 0.00
Long-term payables 31,366,530.13 31,366,530.13
Specific payables 0.00
Estimated liabilities 911,085.41 911,085.41
Deferred income tax
liabilities
Other non-current liabilities 128,555,178.00 131,658,369.11
Total non-current liabilities 477,009,703.49 168,935,984.65
Total liabilities 11,758,163,794.38 11,463,181,656.07
Owners ’ equity (or
shareholders’ equity)
Paid-up capital (or share
1,203,972,704.00 1,203,972,704.00
capital)
Capital reserves 1,274,411,221.73 1,274,405,942.78
Less: Treasury stock 0.00
Specific reserves 0.00
Surplus reserves 847,908,466.28 847,908,466.28
Provisions for general risks 0.00
15
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Retained profits 747,514,484.71 737,991,722.40
Foreign exchange difference 14,730,700.89 16,179,316.17
Total equity attributable to
4,088,537,577.61 4,080,458,151.63
owners of the Company
Minority interests 199,872,830.73 199,644,527.79
Total owners ’ (or
4,288,410,408.34 4,280,102,679.42
shareholders’) equity
Total liabilities and owners’
16,046,574,202.72 15,743,284,335.49
(or shareholders’) equity
Legal representative: Wu Siyuan Person-in-charge of the accounting work:
Yang Rong
Chief of the accounting division: Xu Youshan
2. Balance sheet of the Company
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Closing balance Opening balance
Current Assets:
Monetary funds 1,590,554,860.24 1,118,577,010.98
Transactional financial
assets
Notes receivable 3,580,458,253.34 3,963,969,934.07
Accounts receivable 1,132,855,365.87 1,543,050,476.67
Accounts paid in advance 767,559,746.44 239,011,903.60
Interest receivable 17,148,036.76 12,151,753.22
Dividend receivable
Other accounts receivable 768,819,303.67 668,297,184.77
Inventories 1,775,383,195.93 2,333,107,085.15
Non-current assets due within
1 year
Other current assets
Total current assets 9,632,778,762.25 9,878,165,348.46
Non-current assets:
Available-for-sale financial
949,037.90 941,999.30
assets
16
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Held-to-maturity investments 545,000,000.00 505,000,000.00
Long-term accounts receivable
Long-term equity investment 1,675,299,526.82 1,675,299,526.82
Investing property 236,584,561.46 237,986,524.12
Fixed assets 594,216,729.85 599,950,784.99
Construction in progress 12,588,400.40 8,713,508.63
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 75,362,754.48 76,133,522.45
R&D expense
Goodwill
Long-term deferred expenses 4,256,233.85 4,597,304.79
Deferred income tax assets 182,654,432.30 183,062,820.76
Other non-current assets
Total of non-current assets 3,326,911,677.06 3,291,685,991.86
Total assets 12,959,690,439.31 13,169,851,340.32
Current liabilities:
Short-term borrowings 656,386,152.24 1,023,913,426.22
Transactional financial
liabilities
Notes payable 126,326,834.91 190,949,990.17
Accounts payable 6,586,024,504.74 6,320,384,438.01
Accounts received in advance 206,474,299.22 186,326,967.62
Employee ’ s compensation
148,208,839.55 187,697,895.87
payable
Tax payable -41,337,870.49 -92,265,968.33
Interest payable 18,051,313.97 21,189,076.79
Dividend payable
Other accounts payable 1,142,350,551.85 1,243,478,983.84
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 8,842,484,625.99 9,081,674,810.19
17
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax
liabilities
Other non-current liabilities 72,566,271.31 74,192,786.56
Total non-current liabilities 72,566,271.31 74,192,786.56
Total liabilities 8,915,050,897.30 9,155,867,596.75
Owners ’ equity (or
shareholders’ equity)
Paid-up capital (or share
1,203,972,704.00 1,203,972,704.00
capital)
Capital reserves 1,250,138,868.99 1,250,133,590.04
Less: Treasury stock
Specific reserves
Surplus reserves 847,908,466.28 847,908,466.28
Provisions for general risks
Retained profits 742,619,502.74 711,968,983.25
Foreign exchange difference
Total owners ’ (or
4,044,639,542.01 4,013,983,743.57
shareholders’) equity
Total liabilities and owners’
12,959,690,439.31 13,169,851,340.32
(or shareholders’) equity
Legal representative: Wu Siyuan Person-in-charge of the accounting work:
Yang Rong
Chief of the accounting division: Xu Youshan
3. Consolidated income statement
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
18
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
I. Total operating revenues 4,049,737,785.15 4,806,314,071.49
Including: Sales income 4,049,737,785.15 4,806,314,071.49
Interest income
Premium income
Handling charge and commission
income
II. Total operating cost 4,063,464,797.95 4,813,813,240.44
Including: Cost of sales 3,314,296,879.16 3,986,443,828.73
Interest expenses
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount withdrawn for the
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium
Taxes and associate charges 13,476,912.89 14,928,244.57
Selling and distribution expenses 530,426,324.73 618,981,796.40
Administrative expenses 153,450,740.64 152,643,177.30
Financial expenses 56,996,063.54 26,716,097.95
Asset impairment loss -5,182,123.01 14,100,095.49
Add: Gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment (“-”means
2,174,273.27 -4,105,315.64
loss)
Including: share of profits in associates
2,174,273.27 -4,105,315.64
and joint ventures
Foreign exchange gains (“-” means loss)
III. Business profit (“-” means loss) -11,552,739.53 -11,604,484.59
Add: non-operating income 36,198,775.51 21,216,013.33
Less: non-operating expense 1,583,788.49 709,260.06
Including: loss from non-current asset
950,183.34 249,901.40
disposal
IV. Total profit (“-” means loss) 23,062,247.49 8,902,268.68
Less: Income tax expense 12,737,179.94 -2,156,950.02
19
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
V. Net profit (“-” means loss) 10,325,067.55 11,059,218.70
Including: Net profit achieved by
combined parties before the combinations
Attributable to owners of the Company 9,522,762.31 14,242,614.75
Minority shareholders’ income 802,305.24 -3,183,396.05
VI. Earnings per share -- --
(I) Basic earnings per share 0.0079 0.0118
(II) Diluted earnings per share 0.0079 0.0118
VII. Other comprehensive incomes -2,017,338.63 656,645.45
VIII. Total comprehensive incomes 8,307,728.92 11,715,864.15
Attributable to owners of the Company 8,079,425.98 14,899,260.20
Attributable to minority shareholders 228,302.94 -3,183,396.05
Legal representative: Wu Siyuan Person-in-charge of the accounting work:
Yang Rong
Chief of the accounting division: Xu Youshan
4. Income statement of the Company
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Total sales 4,074,766,293.66 4,918,987,458.20
Less: cost of sales 3,517,553,792.86 4,283,442,338.56
Business taxes and surcharges 9,019,895.98 10,098,865.01
Distribution expenses 425,866,392.90 490,953,506.79
Administrative expenses 97,900,304.89 71,540,916.47
Financial costs 8,524,359.52 10,067,256.26
Impairment loss 14,100,546.17
Add: gain/(loss) from change in fair
value (“-” means loss)
Gain/(loss) from investment ( “ - ”
means loss)
Including: income form investment on
associates and joint ventures
II. Business profit (“-” means loss) 15,901,547.51 38,784,028.94
20
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Add: non-business income 25,951,845.82 12,864,333.45
Less: non-business expense 443,862.26 275,695.38
Including: loss from non-current asset
53,281.44 229,706.92
disposal
III. Total profit (“-” means loss) 41,409,531.07 51,372,667.01
Less: income tax expense 10,759,011.58 -2,789,564.82
IV. Net profit (“-” means loss) 30,650,519.49 54,162,231.83
V. Earnings per share -- --
(I) Basic earnings per share 0.0255 0.0449
(II) Diluted earnings per share 0.0255 0.0449
VI. Other comprehensive income 5,278.95 56,308.80
VII. Total comprehensive income 30,655,798.44 54,218,540.63
Legal representative: Wu Siyuan Person-in-charge of the accounting work:
Yang Rong
Chief of the accounting division: Xu Youshan
5. Consolidated cash flow statement
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating
activities:
Cash received from sale of
4,228,168,316.46 4,707,055,676.28
commodities and rendering of service
Net increase of deposits from
customers and dues from banks
Net increase of loans from the
central bank
Net increase of funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase of deposits of policy
21
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
holders and investment fund
Net increase of disposal of
tradable financial assets
Cash received from interest,
handling charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 133,591,444.76 11,204,992.62
Other cash received relating to
67,080,392.97 101,530,099.82
operating activities
Subtotal of cash inflows from
4,428,840,154.19 4,819,790,768.72
operating activities
Cash paid for goods and services 2,484,241,440.37 3,109,824,326.54
Net increase of customer lendings
and advances
Net increase of funds deposited in
the central bank and amount due from
banks
Cash for paying claims of the
original insurance contracts
Cash for paying interest, handling
charges and commissions
Cash for paying policy dividends
Cash paid to and for employees 483,492,822.28 458,548,740.76
Various taxes paid 210,931,969.79 420,947,307.28
Other cash payment relating to
315,115,729.93 373,133,582.35
operating activities
Subtotal of cash outflows from
3,493,781,962.37 4,362,453,956.93
operating activities
Net cash flows from operating
935,058,191.82 457,336,811.79
activities
II. Cash flows from investing
activities:
Cash received from withdrawal of
13,879,620.00
investments
Cash received from return on
22
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
investments
Net cash received from disposal of
fixed assets, intangible assets and 304,708.58 736,418.31
other long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
14,184,328.58 736,418.31
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 554,763,873.92 60,297,251.34
assets
Cash paid for investment
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business units
Other cash payments relating to
183,497.35
investing activities
Subtotal of cash outflows from
554,947,371.27 60,297,251.34
investing activities
Net cash flows from investing
-540,763,042.69 -59,560,833.03
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received from borrowings 1,249,214,976.99 1,533,337,805.57
Cash received from issuance of
bonds
Other cash received relating to
471.75 687,158,423.39
financing activities
Subtotal of cash inflows from
1,249,215,448.74 2,220,496,228.96
financing activities
Repayment of borrowings 448,563,365.07 1,860,981,037.30
23
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
Cash paid for interest expenses
and distribution of dividends or 9,784,990.71 43,302,013.82
profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating to
959,134.76 278,167,714.68
financing activities
Sub-total of cash outflows from
459,307,490.54 2,182,450,765.80
financing activities
Net cash flows from financing
789,907,958.20 38,045,463.16
activities
IV. Effect of foreign exchange rate
15,165,240.87 3,839,640.32
changes on cash and cash equivalents
V. Net increase in cash and cash
1,199,368,348.20 439,661,082.24
equivalents
Add: Opening balance of cash and
1,771,489,421.21 824,043,169.38
cash equivalents
VI. Closing balance of cash and cash
2,970,857,769.41 1,263,704,251.62
equivalents
Legal representative: Wu Siyuan Person-in-charge of the accounting work:
Yang Rong
Chief of the accounting division: Xu Youshan
6. Cash flow statement of the Company
Prepared by Konka Group Co., Ltd.
Unit: RMB Yuan
Item Jan.-Mar. 2014 Jan.-Mar. 2013
I. Cash flows from operating activities:
Cash received from sale of commodities
3,384,948,009.22 3,643,210,300.74
and rendering of service
Tax refunds received 70,970,465.76 272,514.32
Other cash received relating to
39,210,508.85 57,446,503.11
operating activities
Subtotal of cash inflows from operating
3,495,128,983.83 3,700,929,318.17
activities
Cash paid for goods and services 1,744,797,235.10 2,116,312,022.95
Cash paid to and for employees 275,654,888.89 258,260,617.84
Various taxes paid 108,228,753.26 313,589,900.23
Other cash payment relating to 367,470,718.52 251,392,656.24
24
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
operating activities
Subtotal of cash outflows from operating
2,496,151,595.77 2,939,555,197.26
activities
Net cash flows from operating activities 998,977,388.06 761,374,120.91
II. Cash flows from investing activities:
Cash received from retraction of
13,879,620.00
investments
Cash received from return on
2,400,000.00 5,960,333.33
investments
Net cash received from disposal of
fixed assets, intangible assets and other 101,208.58 736,418.31
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Other cash received relating to
investing activities
Subtotal of cash inflows from
16,380,828.58 6,696,751.64
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 506,239,295.60 36,658,177.27
assets
Cash paid for investment
Net cash paid to acquire subsidiaries
and other business units
Other cash payments relating to
40,000,000.00 60,000,000.00
investing activities
Subtotal of cash outflows from investing
546,239,295.60 96,658,177.27
activities
Net cash flows from investing activities -529,858,467.02 -89,961,425.63
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to
687,158,423.39
financing activities
Subtotal of cash inflows from financing 687,158,423.39
25
Report for the First Quarter of 2014 of Konka Group Co., Ltd.
activities
Repayment of borrowings 402,278,336.53
Cash paid for interest expenses and
32,450,715.74
distribution of dividends or profit
Other cash payments relating to
524.85 277,451,252.05
financing activities
Sub-total of cash outflows from financing
524.85 712,180,304.32
activities
Net cash flows from financing activities -524.85 -25,021,880.93
IV. Effect of foreign exchange rate
2,858,928.22 3,613,298.91
changes on cash and cash equivalents
V. Net increase in cash and cash
471,977,324.41 650,004,113.26
equivalents
Add: Opening balance of cash and cash
1,117,689,643.16 365,891,615.76
equivalents
VI. Closing balance of cash and cash
1,589,666,967.57 1,015,895,729.02
equivalents
Legal representative: Wu Siyuan Person-in-charge of the accounting work: Yang Rong
Chief of the accounting division: Xu Youshan
II. Audit report
Is this report audited?
□ Yes √ No
This report is not audited.
Konka Group Co., Ltd.
Board of Directors
15 Apr. 2014
26
