Konka Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
Stock Code: 000016, 200016 Stock Name: Konka A, Konka B Announcement No.: 2017-43
KONKA GROUP CO., LTD.
SEMI-ANNUAL REPORT 2017 (ABSTRACT)
I Important Notes
This Abstract is based on the full text of the Semi-Annual Report. In order for a full understanding
of the operating results, financial condition and future development planning of the Company,
investors are kindly reminded to read the full text carefully on the media designated by the China
Securities Regulatory Commission (the “CSRC”).
Objections against this Report raised by the directors, supervisors and senior management:
Name Office title Objection and reason
Statement:
Except for the following directors, all the other directors attended in person the board meeting for
the review of this Report.
Reason for not attending in
Name Office title Proxy
person
This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Modified auditor’s opinion:
□ Applicable √ Not applicable
Proposal for profit distribution to or converting capital reserve into share capital for common
shareholders for the Reporting Period, which has been considered and approved by the Board:
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into
share capital.
Proposal for profit distribution to preference shareholders for the Reporting Period, which has been
considered and approved by the Board:
□ Applicable √ Not applicable
II Company Profile
1. Stock Profile
Stock name Konka A, Konka B Stock code 000016, 200016
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Konka Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
Stock exchange Shenzhen Stock Exchange
Changed stock name (if any) N/A
Contact information Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat, 24/F, Konka R&D Center, Board Secretariat, 24/F, Konka R&D Center,
28 Keji South Twelfth Road, Science and 28 Keji South Twelfth Road, Science and
Office address Technology Park, Yuehai Street, Nanshan Technology Park, Yuehai Street, Nanshan
District, Shenzhen, Guangdong Province, District, Shenzhen, Guangdong Province,
China China
Tel. 0755-26608866 0755-26608866
E-mail szkonka@konka.com szkonka@konka.com
2. Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 11,405,965,979.43 8,609,080,822.24 32.49%
Net profit attributable to shareholders of
30,871,267.86 12,834,736.76 140.53%
the Company (RMB)
Net profit attributable to shareholders of
the Company before exceptional gains -44,456,212.17 -28,736,147.20 -54.70%
and losses (RMB)
Net cash from operating activities
-2,264,014,704.88 -125,542,056.42 -1,703.39%
(RMB)
Basic earnings per share (RMB/share) 0.0128 0.0053 141.51%
Diluted earnings per share (RMB/share) 0.0128 0.0053 141.51%
Weighted average return on equity (%) 1.06% 0.46% 0.60%
End of Reporting Period End of last year +/- (%)
Total assets (RMB) 20,666,059,935.37 17,243,119,597.97 19.85%
Net assets attributable to shareholders of
2,928,936,565.96 2,901,481,607.04 0.95%
the Company (RMB)
3. Shareholders and Their Holdings at Period-End
Unit: share
Total number of common Total number of preference shareholders with
115,362 0
shareholders at period-end resumed voting rights at period-end (if any)
Top 10 shareholders
Shareholdi Pledged or frozen
Nature of Total shares Restricted shares
Name of shareholder ng
shareholder held shares held
percentage Status Number
State-owned
OCT ENTERPRISES CO. 21.75% 523,746,932 0
corporation
CITIC SECURITIES
Foreign
BROKERAG (HK) CO., 7.56% 182,100,202 0
corporation
LIMITED
Foreign
HOLY TIME GROUP LIMITED 2.33% 56,049,824 0
corporation
GUOYUAN SECURITIES 2.27% 54,755,145 0
Foreign
BROKERAGE (HK) CO.,
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Konka Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
LIMITED corporation
Foreign
GAOLING FUND, L.P. 2.19% 52,801,250 0
corporation
CHINA MERCHANTS State-owned
0.94% 22,662,120 0
SECURITIES (HK) CO., LTD. corporation
Foreign
NAM NGAI 0.94% 22,535,240 0
individual
NANHUA FUTURES CO.,
LIMITED-NANHUA FUTURES
Other 0.86% 20,713,937 0
NO.5 SILVER LEAF ASSET
MANAGEMENT PLAN
YUNNAN INTERNATIONAL
TRUST CO., LTD.－JULI
Other 0.84% 20,216,860 0
SINGLE FUND TRUST PLAN
NO. 48
CSI CAPITAL MANAGEMENT Foreign
0.83% 20,050,928 0
LIMITED corporation
The wholly owned subsidiary Jialong Investment Co., Ltd. of the first majority shareholder
Overseas Chinese Town Enterprises Co. respectively hold the common share of the
Company of 180,001,110 shares and 18,360,000 shares through CITIC Securities Brokerage
Related or acting-in-concert
(HK) Co., Limited and China Merchants Securities (HK) Co., Ltd., and Jialong Investment
parties among shareholders above
Co., Ltd. and Overseas Chinese Town 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.
Shareholders conducting
N/A
securities margin trading
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preference shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange,
which were undue before the approval date of this Report or were due but could not be redeemed in
full?
No.
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Konka Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
III Performance Discussion and Analysis
1. Performance Review for Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
For the Reporting Period, the Company achieved, on a consolidated basis, operating revenues of
RMB11.406 billion, up 32.49% compared to the same period of last year; net profit attributable to
the Company’s shareholders of RMB30.8713 million, representing a year-on-year rise of 140.53%;
and earnings per share (EPS) of RMB0.0128.
In the Reporting Period, the Company proactively promoted reform in its system and kept
integrating resources to accelerate transformation. As a result, its efforts have been rewarded by
improved earnings. The work that the Company has accomplished in the Reporting Period is
detailed as follows:
(1) In the Reporting Period, the Company continued to promote reform in its system. New senior
management has been hired through an open recruitment in the first quarter of this year. Meanwhile,
certain business units are carrying out a market-oriented reform in a steady manner.
(2) In the Reporting Period, the Company made good use of its partners’ resource advantages. The
Company and China Mobile have jointly launched the Migu-Konka TV. In addition, the Company
has become a top sponsor of the Jiangsu Suning Football Club. These moves will help set up
win-win cooperations. In addition, the Company has signed on July 28, 2017 to be an official
partner of La Liga in China, which will bring new vitality to the Company’s brand.
(3) The Reporting Period saw a significant year-on-year increase in both the operating revenues and
net profit generated by the Company’s smart TV operation business. Moreover, the Company has
developed on its own a series of new products including E-learning, E-shopping, K Video and
World of Games, increasing attractiveness to users and the soft power in brand, as well as
promoting the upgrade in its main business from a traditional model of profiting through adding
value on hardware to a new model of “hardware + software” and “smart TV + end users”.
(4) In the Reporting Period, the Company integrated the development, production and supply chain
systems and optimized the product structure, trying to provide more competitive products. The
increasingly fierce market competition and the rising prices of raw materials, however, led to
decreased gross profit margins and losses in certain of the Company’s main business segments
(including color TVs and white goods).
(5) Exceptional gains and losses have an effect of RMB75.3275 million on net profit in the
Reporting Period.
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Konka Group Co., Ltd. Semi-Annual Report 2017 (Abstract)
2. Matters Related to Financial Report
(1) Changes in Accounting Policies, Accounting Estimations and Measurement Methods
Compared to Last Accounting Period
□ Applicable √ Not applicable
No such cases.
(2) Retroactive Restatements due to Correction of Significant Accounting Errors in Reporting
Period
□ Applicable √ Not applicable
No such cases.
(3) Changes in Scope of Consolidated Financial Statements Compared to Last Accounting
Period
√ Applicable □ Not applicable
① Anhui Konka Electronic Co., Ltd., one of the Company’s subsidiaries, incorporated
wholly-owned subsidiary Anhui Kangzhi Trade Co., Ltd. in Anhui on March 8, 2017 with a
registered capital of RMB5 million. As of the balance sheet date, the money was unpaid by Anhui
Konka Electronic. For the Company has control over Anhui Kangzhi Trade, it has been included in
the consolidation scope since March 8, 2017.
② Anhui Konka Tongchuang Household Appliances Co., Ltd., one of the Company’s subsidiaries,
merged on May 17, 2017 its wholly-owned subsidiary Anhui Konka Household Appliances Co.,
Ltd., which has been cancelled with the industrial and commercial administration on that day.
The Board of Directors
Konka Group Co., Ltd.
August 24, 2017
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