Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
KONKA GROUP CO., LTD.
Report for the Third Quarter of 2015
2015-92
October 2015
1
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Section I. Important Reminders
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management
staff of Konka Group Co., Ltd. (hereinafter referred to as “the Company”) warrant that the
information carried in 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.
Independent Director Mr. Zhang Min did not attend the board meeting for voting on the quarterly
report for he had submitted his resignation letter. And Supervisor Mr. Zhang Guanghui did not
attend the meeting of the Supervisory Committee for voting on the quarterly report for he had
submitted his resignation letter.
Other Directors attended the board meeting that reviewed the quarterly report in person except the
following Directors.
Name Position Reason Name of the mandatory
did not attend the board meeting for voting on the
Zhang Min Independent Director quarterly report for he had submitted his resignation N/A
letter.
Liu Fengxi, Company Principal, Xu Youshan, Chief of the Accounting Work, and 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.
2
Report for the Third Quarter of 2015 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
30 Sept. 2015 31 Dec. 2014 Increase/decrease (%)
Total assets (RMB Yuan) 16,414,287,851.50 16,779,359,276.65 -2.18%
Net assets attributable to shareholders
3,236,137,868.52 4,103,478,971.07
of the Company (RMB Yuan) -21.14%
YoY YoY
Jul.-Sept. 2015 increase/decrea Jan.-Sept. 2015 increase/decreas
se (%) e (%)
Operating revenues (RMB Yuan) 4,900,151,931.72 -3.50% 13,844,710,852.68 2.80%
Net profit attributable to shareholders
-555,256,040.41 -852,209,547.80 -1891.14%
of the Company (RMB Yuan) -17535.28%
Net profit attributable to shareholders
of the Company after extraordinary -365,476,454.60 -235.25% -699,414,686.58 -148.95%
gains and losses (RMB Yuan)
Net cash flows from operating
-- -- 1,141,022,190.39
activities (RMB Yuan) 19.52%
Basic EPS (RMB Yuan/share) -0.2306 -17838.46% -0.3539 -1887.37%
Diluted EPS (RMB Yuan/share) -0.2306 -17838.46% -0.3539 -1887.37%
Weighted average ROE (%) -14.52% -14.57% -23.23% -24.39%
Notes: According to the 1st Extraordinary General Meeting of 2015, the Company executed the proposal of transferring 10 shares for
the whole shareholders by every 10 shares by capital reserves in Sep. 2015 and after the increase by transferring, the total share
capital of the Company doubled, with the total share capital increased to 2,407,945,408 shares. The revenue of the basic EPS and
diluted EPS were the data calculated according to the new total share capital.
Items and amounts of extraordinary gains and losses
√ Applicable □ Inapplicable
Unit: RMB Yuan
Amount as of Jan.-Sept.
Item Note
2015
Gains/losses on the disposal of non-current assets (including the
-6,116,696.33
offset part of asset impairment provisions)
Government grants recognized in the current period, except for
36,658,799.88
those acquired in the ordinary course of business or granted at
3
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
certain quotas or amounts according to the country’s unified
standards
Gain/loss on entrusting others with investments or asset
6,835,735.64
management
Non-operating incomes and expenses other than the above -80,084,762.45
Other gains and losses items met with the definition of
-131,994,332.89
non-current gains and losses
Less: Income tax effects -23,082,829.81
Minority interests effects (after tax) 1,176,434.88
Total -152,794,861.22 --
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
Item Amount (RMB Yuan) Reason
Government grants closely related to the Company’s normal
Tax rebates on software 61,662,772.24 operation and constantly given at certain quotas or amounts
according to the government’s policies and standards
Total 61,662,772.24
II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders
1. Total number of common shareholders at the period-end and shareholdings of top 10
common shareholders
Unit: share
Total number of common
138,542
shareholders at the period-end
Shareholdings of the top ten common shareholders
Pledged or
frozen shares
Shareholding Number of
Nature of Number of the Num
Name of shareholder percentage restricted Status
shareholder shares held ber of
(%) shares held of
share
shares
s
State-owned Pledged 0
OCT ENTERPRISES CO. 21.75% 523,746,932 396,763,880
corporation Frozen 0
4
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
CITIC SECURITIES Pledged 0
Foreign
BROKERAG (HK) CO., 7.48% 180,001,110 0
corporation Frozen 0
LIMITED
GUOYUAN SECURITIES Pledged 0
Foreign
BROKERAG (HK) CO., 2.76% 66,347,503 0
corporation Frozen 0
LIMITED
Foreign Pledged 0
GAOLING FUND,L.P. 2.19% 52,801,250 0
corporation Frozen 0
Foreign Pledged 0
HOLY TIME GROUP LIMITED 2.18% 52,580,354 0
corporation Frozen 0
Foreign Pledged 0
NAM NGAI 0.97% 23,381,040 0
individual Frozen 0
Foreign Pledged 0
BOCI SECURITIES LIMITED 0.94% 22,603,492 0
corporation Frozen 0
State-owned Pledged 0
CMS (HK) CO., LIMITED 0.89% 21,453,952 0
corporation Frozen 0
Foreign Pledged 0
CSI Capital Management Limited 0.85% 20,550,928 0
corporation Frozen 0
Domestic Pledged 0
HE HUIQING 0.84% 20,300,000 0
individual Frozen 0
Shareholdings of the top ten non-restricted common shareholders
Number of non-restricted common Type of shares
Name of shareholder
shares held at the period-end Type Number
CITIC SECURITIES BROKERAG Domestically listed
180,001,110 180,001,110
(HK) CO., LIMITED foreign share
OCT ENTERPRISES CO. 126,983,052 RMB ordinary share 126,983,052
GUOYUAN SECURITIES Domestically listed
66,347,503 66,347,503
BROKERAG (HK) CO., LIMITED foreign share
Domestically listed
GAOLING FUND,L.P. 52,801,250 52,801,250
foreign share
Domestically listed
HOLY TIME GROUP LIMITED 52,580,354 52,580,354
foreign share
Domestically listed
NAM NGAI 23,381,040 23,381,040
foreign share
Domestically listed
BOCI SECURITIES LIMITED 22,603,492 22,603,492
foreign share
CMS (HK) CO., LIMITED 21,453,952 Domestically listed 21,453,952
5
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
foreign share
Domestically listed
CSI Capital Management Limited 20,550,928 20,550,928
foreign share
HE HUIQING 20,300,000 RMB ordinary share 20,300,000
The wholly owned subsidiary Jialong Investment Co., Ltd. of the first majority
shareholder OVERSEAS CHINESE TOWN ENTERPRISES CO. respectively hold the
Explanation on associated relationship common share of the Company of 180,001,110 shares and 18,360,000 shares through
or/and persons acting in concert CITIC SECURITIES BROKERAG (HK) CO., LIMITED and CMS (HK) CO.,
among the above-mentioned LIMITED, and Jialong Investment Co., Ltd. and OVERSEAS CHINESE TOWN
shareholders: ENTERPRISES CO. were persons acting in concert; the Company does not know
whether the other shareholders are related parties and whether they are
acting-in-concert parties.
Explanation on the Top 10
shareholders participating in the Inapplicable
margin trading business (if any)
Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of
the Company carry out any agreed buy-back in the reporting period?
□ Yes √ No
No shareholder of the Company carried out any agreed buy-back in the reporting period.
2. Total number of preferred share holders and shareholdings of the top ten preferred share
holders at the period-end
□ Applicable √ Inapplicable
6
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Section III. Significant Events
I. Major changes in main accounting statement items and financial indicators in the reporting
period, as well as reasons for the changes
√ Applicable □ Inapplicable
(I) In the first nine months, we carried on with our internet-oriented strategy, resulting in a larger
proportion of intelligent TVs in the total sales, which has been considered as an improvement to our
product mix. However, heavy losses were recorded due to the following reasons:
1. We have net liabilities in US dollars about 600 million due to our operating needs. And the RMB
depreciation against the US dollar since 2015 has caused us an exchange loss about RMB 190
million.
2. In September 2015, we received the Notice of the Finance Commission of Shenzhen
Municipality Regarding Taking back the Central Government’s Promotion Subsidy for
High-Efficient and Energy-Saving Home Appliances. According to the Notice, we need to return the
subsidy of RMB 89.96 million, incurring an irrecoverable state energy-saving subsidy net
receivable of the carrying amount of RMB 131.99 million. The said matter shall reduce our
consolidated total profits for the first nine months by RMB 221.95 million (for details, see the
Announcement No. 2015-82 on the Notice of the Finance Commission of Shenzhen Municipality
Regarding Taking back the Central Government’s Promotion Subsidy for High-Efficient and
Energy-Saving Home Appliances disclosed on 30 Sept. 2015.
3. The frequent changes in our management produced a negative impact on our production and
operation. Meanwhile, due to the fierce price competition of our main products, the profitability in
our main business saw a drop in the reporting period.
(II) Since 2015, we have been pushing forward our internet-oriented strategy:
1. We have launched a series of smart TVs. Joining hands with Tencent, Youku and Aliyun.com,
we have launched three major series—T60 Tencent Super TV, 2600 Youku TV and Aliyun TV for
online sales. In addition, we also introduced to the market quality series including X80U Moon
Goddess 4K Curved-Surface TV, 8900 TV, G9200 True Color Classic TV and X8800 BingBing
Ultra-Thin TV.
2. We have started to cooperate with GITV and Tencent Video, marking the increase of our Internet
TV partners to a number of three.
3. In September 2015, we started to work with Zhejiang Tmall Technology Co., Ltd. on Internet TV.
To provide consumers with smart TVs with more contents, better service and customer experience
by implanting a sound Alibaba home entertainment service platform into our smart TVs will help
7
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
boost the sales of our smart TVs and at the same time give us a share in the platform operating
revenues, which will extend our income sources and thus increase our income.
(III) Changes in the major financial indicators Unit: RMB Ten thousand
Closing Opening
Item +/- +/-% Main reasons for the change
amount amount
Interest
830.64 188.57 642.06 340.49% The interest income increased.
receivable
Long-term
deferred 6,308.40 2,579.28 3,729.12 144.58% The newly-added expenses on display windows and
expenses exhibition stands
Interest
3,331.51 2,287.24 1,044.27 45.66% The interest provisions increased.
payable
Jan.-Sept. Jan.-Sept.
Item +/- +/-% Main reasons for the change
2015 2015
Financial Financing costs increased. and exchange rate
28,058.11 12,688.40 15,369.71 121.13%
expenses fluctuations
Investment The gains on disposal of subsidiaries and
1,216.18 42,250.88 -41,034.71 -97.12%
gains investment decreased
Energy-saving subsidy should be returned and
Non-business
10,179.29 1,134.11 9,045.18 797.56% inability to recove the carrying amount of
expenses
receivables energy-saving subsidy
II. Progress and influence of significant events, as well as the analysis and explanation on
solutions
√ Applicable □ Inapplicable
(I) Regarding the Konka Group Headquarters Urban Renewal Program, we have hired the planning
and advisory agency through bidding and are currently pushing forward the dismantlement of the
old plants, etc.
(II) As for the Kunshan Shuiyue Zhouzhuang Program, we have sold the houses for Phase I and
officially handed over to the buyers,sold some houses for Phase II, which have not yet been
officially handed over to the buyers.
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
□ Applicable √ Inapplicable
No such commitments in the reporting period.
8
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
IV. Predict the 2015 annual operating results
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
√ Applicable □ Inapplicable
Num
Numb ber
Shareh
er of of Shareh Gain/los
olding Closin
Varie Code Name Initial shares shar olding s in
percent g book
ty of of of investment held es percent reportin Accounting Source of
age at value
secur securiti securi cost (RMB at held age at g period title stock
period- (RMB
ities es ties Yuan) period at period- (RMB
beginni Yuan)
-begin peri end Yuan)
ng
ning od-e
nd
Available-f Applicati
Stoc 7,705.7 or-sale on for the
002772 ZXJY 6,500.00 500 0.00% 0 0.00% 0.00
k 7 financial new
assets shares
Available-f Applicati
Stoc SSY 18,830. or-sale on for the
300485 19,230.00 500 0.00% 0 0.00% 0.00
k Y 46 financial new
assets shares
Available-f Applicati
Stoc PYH 4,970.4 or-sale on for the
300481 4,565.00 500 0.00% 0 0.00% 0.00
k C 5 financial new
assets shares
Available-f Applicati
Stoc KDR 4,137.4 or-sale on for the
002770 3,425.00 500 0.00% 0 0.00% 0.00
k Y 2 financial new
assets shares
Available-f Applicati
Stoc 7,124.6 or-sale on for the
002776 BBL 11,645.00 500 0.00% 0 0.00% 0.00
k 1 financial new
assets shares
Stoc 6,090.4 Available-f Applicati
002766 SLGF 3,765.00 500 0.00% 0 0.00% 0.00
k 1 or-sale on for the
9
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
financial new
assets shares
Other securities
investments held at 0.00 0 -- 0 -- 0.00 0.00 -- --
period-end
48,859.
Total 49,130.00 3,000 -- 0 -- 0.00 -- --
12
Disclosure date of the
board announcement on
Inapplicable
approval of the securities
investment
Disclosure date of the
general meeting
announcement on Inapplicable
approval of the securities
investment (if any)
VI. Shareholdings in other listed companies
√ Applicable □ Inapplicable
As at the period-end, the Company hold the common shares of Vanke A with the initial investment
cost of RMB2,311,748.07, the fair value of the period-begin of RMB1,703,341.20 and the fair value
of the period-end of RMB1,493,356.30.
VII. Investments in derivatives
□ Applicable √ Inapplicable
No such cases in the reporting period.
VIII. Researches, visits and interviews received in the reporting period
□ Applicable √ Inapplicable
No such cases in the reporting period.
10
Report for the Third Quarter of 2015 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 3,219,582,518.43 1,703,135,732.18
Settlement reserves
Intra-group lendings
Financial assets measured at fair
value of which changes are recorded
in current profits and losses
Derivative financial assets
Notes receivable 2,625,650,418.72 3,819,417,076.37
Accounts receivable 2,613,928,754.18 2,259,293,207.16
Accounts paid in advance 425,405,015.17 315,150,044.57
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserves
Interest receivable 8,306,374.74 1,885,727.36
Dividend receivable
Other accounts receivable 181,548,647.99 298,975,391.68
Financial assets purchased under
agreements to resell
Inventories 3,135,256,562.78 3,904,436,250.33
Assets held for sale
Non-current assets due within 1
year
Other current assets 620,153,688.88 568,020,200.48
Total current assets 12,829,831,980.89 12,870,313,630.13
11
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Non-current assets:
Loans by mandate and advances
granted
Available-for-sale financial assets 309,214,069.00 245,033,609.00
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 240,624,069.88 362,765,183.66
Investing real estate 229,125,997.10 233,349,452.80
Fixed assets 1,736,181,644.23 1,783,695,548.92
Construction in progress 220,722,765.97 159,604,884.09
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 352,584,389.26 347,626,130.58
R&D expense
Goodwill 3,597,657.15 3,597,657.15
Long-term deferred expenses 63,083,961.38 25,792,805.06
Deferred income tax assets 429,321,316.64 259,516,396.26
Other non-current assets 488,063,979.00
Total of non-current assets 3,584,455,870.61 3,909,045,646.52
Total assets 16,414,287,851.50 16,779,359,276.65
Current liabilities:
Short-term borrowings 5,223,537,109.01 5,145,712,436.91
Borrowings from the Central Bank
Customer bank deposits and due to
banks and other financial institutions
Intra-group borrowings
Financial liabilities measured at
fair value of which changes are 23,826,239.36
recorded in current profits and losses
Derivative financial liabilities
Notes payable 943,882,239.02 911,355,028.47
Accounts payable 3,095,761,372.15 3,144,408,433.93
Accounts received in advance 585,405,942.85 302,904,453.86
12
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Financial assets sold and
repurchased
Handling charges and commissions
payable
Payroll payable 242,440,116.82 299,272,715.05
Tax payable 166,665,214.07 112,557,005.85
Interest payable 33,315,122.20 22,872,418.43
Dividend payable
Other accounts payable 1,383,773,992.96 1,376,803,381.03
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within 1
372,873,863.16 1,525,465.53
year
Other current liabilities
Total current liabilities 12,071,481,211.60 11,317,411,339.06
Non-current liabilities:
Long-term borrowings 639,261,118.99 957,541,210.52
Bonds payable
Of which: preference shares
Perpetual bonds
Long-term payables 30,136,615.38 30,029,990.10
Long-term payroll payables 24,838,611.19 28,554,734.16
Specific payables
Estimated liabilities
Deferred income 147,330,348.29 147,315,999.02
Deferred income tax liabilities 7,391,081.84 1,049,498.77
Other non-current liabilities
Total non-current liabilities 848,957,775.69 1,164,491,432.57
Total liabilities 12,920,438,987.29 12,481,902,771.63
Owners’ equity:
13
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Share capital 2,407,945,408.00 1,203,972,704.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 87,904,540.65 1,289,403,563.99
Less: Treasury stock
Other comprehensive income 10,605,969.54 16,171,477.91
Specific reserves
Surplus reserves 847,908,466.28 847,908,466.28
Provisions for general risks
Retained profits -118,226,515.95 746,022,758.89
Total equity attributable to owners of
3,236,137,868.52 4,103,478,971.07
the Company
Minority interests 257,710,995.69 193,977,533.95
Total owners’ equity 3,493,848,864.21 4,297,456,505.02
Total liabilities and owners’ equity 16,414,287,851.50 16,779,359,276.65
Legal representative: LiuFengxi Person-in-charge of the accounting work: Xu Youshan
Chief of the accounting division: Xu Youshan
2. Balance sheet of the Company
Unit: RMB Yuan
Item Closing balance Opening balance
Current assets:
Monetary funds 1,207,253,501.91 993,131,773.08
Financial assets measured at fair
value of which changes are recorded
in current profits and losses
Derivative financial assets
Notes receivable 2,341,370,956.64 3,664,117,423.56
Accounts receivable 2,218,176,315.33 1,539,295,976.29
Accounts paid in advance 374,795,436.67 349,343,179.42
Interest receivable 30,508,190.28 14,450,153.53
Dividend receivable
Other accounts receivable 846,936,525.37 988,199,630.05
14
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Inventories 1,641,957,245.68 2,500,537,916.63
Assets held for sale
Non-current assets due within 1
year
Other current assets 480,046,391.64 201,280,204.53
Total current assets 9,141,044,563.52 10,250,356,257.09
Non-current assets:
Available-for-sale financial assets 269,164,069.00 218,983,609.00
Held-to-maturity investments 517,000,000.00 600,000,000.00
Long-term accounts receivable - -
Long-term equity investment 1,619,270,721.07 1,608,674,456.09
Investing real estate 229,125,997.10 233,349,452.80
Fixed assets 520,461,740.31 534,363,754.80
Construction in progress 30,478,639.64 37,567,861.10
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 86,471,604.99 76,397,532.51
R&D expense
Goodwill
Long-term deferred expenses 47,272,453.12 14,567,206.83
Deferred income tax assets 392,878,246.73 244,080,035.45
Other non-current assets
Total of non-current assets 3,712,123,471.96 3,567,983,908.58
Total assets 12,853,168,035.48 13,818,340,165.67
Current liabilities:
Short-term borrowings 824,873,318.85 244,808,594.52
Financial liabilities measured at
fair value of which changes are 5,092,763.02
recorded in current profits and losses
Derivative financial liabilities
Notes payable 369,690,796.77 367,803,372.65
Accounts payable 6,097,073,684.96 7,871,208,959.66
Accounts received in advance 383,696,078.05 190,627,895.21
15
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Payroll payable 97,080,801.61 146,758,331.08
Tax payable 118,964,798.70 5,081,943.95
Interest payable 9,713,255.49 5,406,211.20
Dividend payable - -
Other accounts payable 1,489,876,539.55 1,103,672,772.19
Liabilities held for sale
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 9,396,062,037.00 9,935,368,080.46
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: preference shares
Perpetual bonds
Long-term payables
Long-term payroll payables
Specific payables
Estimated liabilities
Deferred income 78,924,773.79 80,679,738.96
Deferred income tax liabilities 5,960,028.72
Other non-current liabilities
Total non-current liabilities 84,884,802.51 80,679,738.96
Total liabilities 9,480,946,839.51 10,016,047,819.42
Owners’ equity:
Share capital 2,407,945,408.00 1,203,972,704.00
Other equity instruments
Of which: preference shares
Perpetual bonds
Capital reserves 46,310,784.79 1,250,283,488.79
Less: Treasury stock
Other comprehensive income 369,839.04 471,827.51
Specific reserves
Surplus reserves 847,908,466.28 847,908,466.28
16
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Retained profits 69,686,697.86 499,655,859.67
Total owners’ equity 3,372,221,195.97 3,802,292,346.25
Total liabilities and owners’ equity 12,853,168,035.48 13,818,340,165.67
3. Consolidated income statement for the reporting period
Unit: RMB Yuan
Item Jul.-Sept. 2015 Jul.-Sept. 2014
I. Operating revenues 4,900,151,931.72 5,077,820,763.66
Including: Sales income 4,900,151,931.72 5,077,820,763.66
Interest income
Premium income
Handling charge and
commission income
II. Operating costs 5,487,749,782.77 5,293,677,855.88
Including: Cost of sales 4,348,483,599.93 4,467,793,595.43
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 23,436,891.68 19,852,235.36
Selling and distribution
610,968,887.69 603,920,274.15
expenses
Administrative expenses 161,787,869.24 161,335,348.26
Financial expenses 181,514,219.00 25,023,270.63
Asset impairment loss 161,558,315.23 15,753,132.05
Add: Gain/(loss) from change in fair
-23,744,128.23 -
value (“-” means loss)
Gain/(loss) from investment (“-”
4,976,331.44 156,068,719.20
means loss)
Including: share of profits in 618,107.65 150,388,087.59
17
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means loss) -606,365,647.84 -59,788,373.02
Add: non-operating income 44,489,842.42 87,715,844.22
Including: Gains on disposal of
non-current assets
Less: non-operating expense 98,570,588.40 7,305,180.46
Including: Losses on disposal
5,456,264.40 2,646,864.87
of non-current assets
IV. Total profit (“-” means loss) -660,446,393.82 20,622,290.74
Less: Income tax expense -106,637,412.14 17,178,671.02
V. Net profit (“-” means loss) -553,808,981.68 3,443,619.72
Net profit attributable to owners
-555,256,040.41 3,184,669.21
of the Company
Minority shareholders’ income 1,447,058.73 258,950.51
VI. After-tax net amount of other
-6,081,942.570 392,655.050
comprehensive incomes
After-tax net amount of other
comprehensive incomes attributable to -6,330,540.915 347,101.360
owners of the Company
(I) Other comprehensive
incomes that will not be reclassified
into gains and losses
1. Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees
that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive
incomes that will be reclassified into -6,330,540.915 347,101.360
gains and losses
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
losses under the equity method
2. Gains and losses on fair -193,125.180 80,064.070
18
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
value changes of available-for-sale
financial assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains
and losses on cash flows
5. Foreign-currency financial
-6,137,415.735 267,037.290
statement translation difference
6. Other
After-tax net amount of other
comprehensive incomes attributable to 248,598.345 45,553.690
minority shareholders
VII. Total comprehensive incomes -559,890,924.25 3,836,274.77
Attributable to owners of the
-561,586,581.32 3,531,770.57
Company
Attributable to minority
1,695,657.07 304,504.20
shareholders
VIII. Earnings per share
(I) Basic earnings per share -0.2306 0.0013
(II) Diluted earnings per share -0.2306 0.0013
Legal representative: LiuFengxi Person-in-charge of the accounting work: Xu Youshan
Chief of the accounting division: Xu Youshan
4. Income statement of the Company for the reporting period
Unit: RMB Yuan
Item Jul.-Sept. 2015 Jul.-Sept. 2014
I. Total sales 3,764,448,066.71 4,910,952,092.76
Less: cost of sales 3,457,445,522.80 4,488,862,030.93
Business taxes and surcharges 14,017,425.60 6,789,336.18
Distribution expenses 446,374,143.96 475,996,986.70
Administrative expenses 73,134,364.16 113,759,087.34
Financial costs 8,574,806.75 -13,806,593.05
Impairment loss 144,809,651.76 7,528,125.66
19
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Add: gain/(loss) from change in
-5,092,763.02 -
fair value (“-” means loss)
Gain/(loss) from investment (“-”
12,337,259.03 -10,584,050.13
means loss)
Including: income from
investment on associates and joint 451,622.69 -
ventures
II. Business profit (“-” means loss) -372,663,352.31 -178,760,931.13
Add: non-operating income 82,240,061.89 79,279,469.92
Including: Gains on disposal of
non-current assets
Less: non-operating expense 91,042,240.83 5,627,863.53
Including: Losses on disposal of
363,786.58 1,173,968.94
non-current assets
III. Total profit (“-” means loss) -381,465,531.25 -105,109,324.74
Less: Income tax expense -95,856,433.21 -26,255,802.46
IV. Net profit (“-” means loss) -285,609,098.04 -78,853,522.28
V. After-tax net amount of other
-172,951.370 80,064.070
comprehensive incomes
(I) Other comprehensive incomes
that will not be reclassified into gains
and losses
1. Changes in net liabilities or
assets with a defined benefit plan
upon re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees
that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and -172,951.370 80,064.070
losses
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
losses under the equity method
2. Gains and losses on fair value
changes of available-for-sale financial -173,902.420 80,064.070
assets
20
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
951.050 0.000
statement translation difference
6. Other
VI. Total comprehensive incomes -285,782,049.41 -78,773,458.21
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated income statement for Jan.-Sept. 2015
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Operating revenues 13,844,710,852.68 13,467,888,459.14
Including: Sales income 13,844,710,852.68 13,467,888,459.14
Interest income
Premium income
Handling charge and
commission income
II. Operating costs 14,861,414,808.15 13,922,489,483.67
Including: Cost of sales 12,139,699,400.50 11,471,583,908.48
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 52,146,898.35 47,098,016.85
21
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Selling and distribution
1,735,657,838.04 1,759,788,635.00
expenses
Administrative expenses 454,026,772.95 465,777,790.64
Financial expenses 280,581,130.17 126,884,047.87
Asset impairment loss 199,302,768.14 51,357,084.83
Add: Gain/(loss) from change in fair
-23,744,128.23 -
value (“-” means loss)
Gain/(loss) from investment (“-”
12,161,785.57 422,508,837.83
means loss)
Including: share of profits in
-4,399,219.21 152,108,088.99
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means loss) -1,028,286,298.13 -32,092,186.70
Add: non-operating income 113,913,005.97 145,931,312.24
Including: Gains on disposal of
non-current assets
Less: non-operating expense 101,792,892.55 11,341,121.48
Including: Losses on disposal
6,789,889.20 6,115,779.18
of non-current assets
IV. Total profit (“-” means loss) -1,016,166,184.71 102,498,004.06
Less: Income tax expense -157,739,031.34 52,693,555.37
V. Net profit (“-” means loss) -858,427,153.37 49,804,448.69
Net profit attributable to owners
-852,209,547.80 47,579,255.05
of the Company
Minority shareholders’ income -6,217,605.57 2,225,193.64
VI. After-tax net amount of other
-4,949,439.260 2,568,338.320
comprehensive incomes
After-tax net amount of other
comprehensive incomes attributable to -5,565,508.37 2,461,128.340
owners of the Company
(I) Other comprehensive
incomes that will not be reclassified
into gains and losses
1. Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
2. Enjoyable shares in other
22
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
comprehensive incomes in investees
that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive
incomes that will be reclassified into -5,565,508.37 2,461,128.340
gains and losses
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
losses under the equity method
2. Gains and losses on fair
value changes of available-for-sale -102,939.53 101,179.870
financial assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains
and losses on cash flows
5. Foreign-currency financial
-5,462,568.84 2,359,948.470
statement translation difference
6. Other
After-tax net amount of other
comprehensive incomes attributable to 616,069.11 107,209.98
minority shareholders
VII. Total comprehensive incomes -863,376,592.63 52,372,787.01
Attributable to owners of the
-857,775,056.17 50,040,383.39
Company
Attributable to minority
-5,601,536.46 2,332,403.62
shareholders
VIII. Earnings per share
(I) Basic earnings per share -0.3539 0.0198
(II) Diluted earnings per share -0.3539 0.0198
6. Income statement of the Company for Jan.-Sept. 2015
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Total sales 11,554,014,201.79 13,383,758,078.78
23
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Less: cost of sales 10,496,844,522.12 12,000,413,762.42
Business taxes and surcharges 28,491,852.52 23,583,446.31
Distribution expenses 1,256,234,984.04 1,398,351,839.36
Administrative expenses 226,533,974.27 309,854,623.79
Financial costs 19,791,369.45 30,428,246.25
Impairment loss 162,892,130.89 35,304,837.36
Add: gain/(loss) from change in
-5,092,763.02 -
fair value (“-” means loss)
Gain/(loss) from investment (“-”
51,710,055.96 260,851,094.05
means loss)
Including: income from
investment on associates and joint -1,091,608.11 -2,175,501.89
ventures
II. Business profit (“-” means loss) -590,157,338.56 -153,327,582.66
Add: non-operating income 121,990,873.72 112,639,833.40
Including: Gains on disposal of
non-current assets
Less: non-operating expense 92,568,471.71 7,236,599.91
Including: Losses on disposal of
1,267,293.26 2,688,032.04
non-current assets
III. Total profit (“-” means loss) -560,734,936.55 -47,924,349.17
Less: Income tax expense -142,805,501.78 -11,323,255.95
IV. Net profit (“-” means loss) -417,929,434.77 -36,601,093.22
V. After-tax net amount of other
-101,988.470 101,179.870
comprehensive incomes
(I) Other comprehensive incomes
that will not be reclassified into gains
and losses
1. Changes in net liabilities or
assets with a defined benefit plan
upon re-measurement
2. Enjoyable shares in other
comprehensive incomes in investees
that cannot be reclassified into gains
and losses under the equity method
(II) Other comprehensive incomes
that will be reclassified into gains and -101,988.47 101,179.870
losses
24
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
1. Enjoyable shares in other
comprehensive incomes in investees
that will be reclassified into gains and
losses under the equity method
2. Gains and losses on fair value
changes of available-for-sale financial -102,939.52 101,179.870
assets
3. Gains and losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
4. Effective hedging gains and
losses on cash flows
5. Foreign-currency financial
951.05 0.000
statement translation difference
6. Other
VI. Total comprehensive incomes -418,031,423.24 -36,499,913.35
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
7. Consolidated cash flow statement for Jan.-Sept. 2015
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Cash flows from operating
activities:
Cash received from sale of
13,985,879,580.25 12,555,098,512.73
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
25
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Net increase of deposits of policy
holders and investment fund
Net increase of disposal of
financial assets measured at fair value
of which changes are recorded into
current gains and losses
Cash received from interest,
handling charges and commissions
Net increase of intra-group
borrowings
Net increase of funds in repurchase
business
Tax refunds received 335,357,120.11 358,329,202.50
Other cash received relating to
323,220,047.69 235,861,761.39
operating activities
Subtotal of cash inflows from
14,644,456,748.05 13,149,289,476.62
operating activities
Cash paid for goods and services 10,903,464,117.59 9,380,348,724.96
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 1,315,880,285.54 1,323,467,590.83
Various taxes paid 400,440,616.35 563,998,566.46
Other cash payment relating to
883,649,538.18 926,764,281.16
operating activities
Subtotal of cash outflows from
13,503,434,557.66 12,194,579,163.41
operating activities
Net cash flows from operating
1,141,022,190.39 954,710,313.21
activities
II. Cash flows from investing
activities:
26
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Cash received from withdrawal of
144,985,946.85 80,177,238.14
investments
Cash received from return on
17,924,800.38 142,274,404.64
investments
Net cash received from disposal of
fixed assets, intangible assets and 2,578,218.68 8,486,488.23
other long-term assets
Net cash received from disposal of
- 238,782,351.98
subsidiaries or other business units
Other cash received relating to
3,424,314,849.00 1,202,472,043.31
investing activities
Subtotal of cash inflows from
3,589,803,814.91 1,672,192,526.30
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 191,731,495.42 698,773,238.21
assets
Cash paid for investment 78,300,427.00 25,623,300.00
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business units
Other cash payments relating to
3,387,601,232.07 1,565,183,497.35
investing activities
Subtotal of cash outflows from
3,657,633,154.49 2,289,580,035.56
investing activities
Net cash flows from investing
-67,829,339.58 -617,387,509.26
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
71,253,725.44 2,800,000.00
contributions
Including: Cash received from
minority shareholder investments by 71,253,725.44 2,800,000.00
subsidiaries
Cash received from borrowings 2,475,961,527.30 2,981,063,581.11
Cash received from issuance of
bonds
Other cash received relating to
116,254,909.74 29,200,869.52
financing activities
27
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Subtotal of cash inflows from
2,663,470,162.48 3,013,064,450.63
financing activities
Repayment of borrowings 2,142,528,825.32 2,741,806,676.36
Cash paid for interest expenses
104,782,035.89 84,152,056.20
and distribution of dividends or profit
Including: dividends or profit
paid by subsidiaries to minority -
shareholders
Other cash payments relating to
160,167,712.58 598,450,810.48
financing activities
Sub-total of cash outflows from
2,407,478,573.79 3,424,409,543.04
financing activities
Net cash flows from financing
255,991,588.69 -411,345,092.41
activities
IV. Effect of foreign exchange rate
-26,171,931.83 9,106,902.07
changes on cash and cash equivalents
V. Net increase in cash and cash
1,303,012,507.67 -64,915,386.39
equivalents
Add: Opening balance of cash
1,640,236,837.08 1,771,489,421.21
and cash equivalents
VI. Closing balance of cash and cash
2,943,249,344.75 1,706,574,034.82
equivalents
8. Cash flow statement of the Company for Jan.-Sept. 2015
Unit: RMB Yuan
Item Jan.-Sept. 2015 Jan.-Sept. 2014
I. Cash flows from operating
activities:
Cash received from sale of
9,728,289,659.91 9,534,307,204.66
commodities and rendering of service
Tax refunds received 171,735,060.92 172,815,986.06
Other cash received relating to
1,561,565,595.45 357,621,689.04
operating activities
Subtotal of cash inflows from
11,461,590,316.28 10,064,744,879.76
operating activities
Cash paid for goods and services 8,210,914,476.56 7,404,978,331.51
Cash paid to and for employees 705,264,163.09 729,796,739.00
28
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Various taxes paid 134,399,486.02 236,222,067.20
Other cash payment relating to
1,456,823,738.53 893,363,473.32
operating activities
Subtotal of cash outflows from
10,507,401,864.20 9,264,360,611.03
operating activities
Net cash flows from operating
954,188,452.08 800,384,268.73
activities
II. Cash flows from investing
activities:
Cash received from withdrawal of
130,093,919.85 301,267,191.25
investments
Cash received from return on
31,784,264.84 13,460,524.61
investments
Net cash received from disposal of
fixed assets, intangible assets and 57,414,081.68 7,557,428.23
other long-term assets
Net cash received from disposal of
- -
subsidiaries or other business units
Other cash received relating to
3,087,884,590.00 1,202,472,043.31
investing activities
Subtotal of cash inflows from
3,307,176,856.37 1,524,757,187.40
investing activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 37,606,302.33 568,075,101.35
assets
Cash paid for investment 191,751,411.00 12,523,300.00
Net cash paid to acquire
subsidiaries and other business units
Other cash payments relating to
3,454,884,590.00 1,646,000,000.00
investing activities
Subtotal of cash outflows from
3,684,242,303.33 2,226,598,401.35
investing activities
Net cash flows from investing
-377,065,446.96 -701,841,213.95
activities
III. Cash Flows from Financing
Activities:
Cash received from capital
contributions
29
Report for the Third Quarter of 2015 of Konka Group Co., Ltd.
Cash received from borrowings 61,422,000.00
Cash received from issuance of
bonds
Other cash received relating to
634,734,396.24 353,481,347.13
financing activities
Subtotal of cash inflows from
696,156,396.24 353,481,347.13
financing activities
Repayment of borrowings - -
Cash paid for interest expenses
11,608,876.32 11,854,357.13
and distribution of dividends or profit
Other cash payments relating to
1,067,804,525.32 595,599,703.87
financing activities
Sub-total of cash outflows from
1,079,413,401.64 607,454,061.00
financing activities
Net cash flows from financing
-383,257,005.40 -253,972,713.87
activities
IV. Effect of foreign exchange rate
-2,694,776.40 -2,603,210.17
changes on cash and cash equivalents
V. Net increase in cash and cash
191,171,223.32 -158,032,869.26
equivalents
Add: Opening balance of cash
991,459,790.62 1,117,689,643.16
and cash equivalents
VI. Closing balance of cash and cash
1,182,631,013.94 959,656,773.90
equivalents
II. Auditor’s report
Is this report audited?
□ Yes √ No
This report is not audited.
Konka Group Co., Ltd.
Board of Directors
28 Oct. 2015
30
