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深康佳B:2020年第三季度报告全文(英文版)2020-10-31  

                        Konka Group Co., Ltd.                              Third Quarterly Report 2020




                           KONKA GROUP CO., LTD.

                        THIRD QUARTERLY REPORT 2020
                                    2020-118




                                 October 2020




                                       1
Konka Group Co., Ltd.                                                   Third Quarterly Report 2020




                               Part I Important Notes

The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Konka Group Co., Ltd. (together with its consolidated
subsidiaries, the “Company”, except where the context otherwise requires) hereby guarantee
the factuality, accuracy and completeness of the contents of this Report and its summary, and
shall be jointly and severally liable for any misrepresentations, misleading statements or
material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Liu Fengxi, the Company’s legal representative, Li Chunlei, the Company’s Chief Financial
Officer (CFO), and Feng Junxiu, head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the financial statements carried in this Report are
factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.




                                              2
Konka Group Co., Ltd.                                                                              Third Quarterly Report 2020




                                   Part II Key Corporate Information

I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
                                                   30 September 2020      31 December 2019                 Change (%)

 Total assets (RMB)                                 44,785,049,225.79       42,586,955,452.27                             5.16%

 Equity attributable to the listed company’s
                                                      8,518,673,314.06       8,068,505,598.13                             5.58%
 shareholders (RMB)

                                                                          YoY change                              YoY change
                                                       Q3 2020                                Q1-Q3 2020
                                                                             (%)                                        (%)

 Operating revenue (RMB)                            12,276,961,374.42         -21.53%        29,801,145,271.16          -28.50%

 Net profit attributable to the listed
                                                       520,661,894.19         432.78%           615,363,686.82           36.60%
 company’s shareholders (RMB)

 Net profit attributable to the listed
 company     ’   s   shareholders     before         -843,908,630.71         -99.32%        -1,493,919,126.18          -42.78%
 exceptional items (RMB)

 Net cash generated from/used in operating
                                                        -99,506,432.85         81.21%        -1,175,873,360.33           54.29%
 activities (RMB)

 Basic earnings per share (RMB/share)                            0.2162       432.51%                  0.2556            36.61%

 Diluted earnings per share (RMB/share)                          0.2162       432.51%                  0.2556            36.61%

 Weighted average return on equity (%)                           6.27%          5.07%                   7.37%             1.97%

Exceptional gains and losses:
√ Applicable □ Not applicable
                                                                                                                        Unit: RMB

                                            Item                                                Q1-Q3 2020               Note

 Gain/Loss arising from disposal of non-current assets (inclusive of impairment
                                                                                                  1,306,383,744.02
 allowance write-offs)

 Government subsidies recognized in the current period, except for those acquired in the
 ordinary course of business or granted at certain quotas or amounts according to the               451,617,886.43
 government’s unified standards

 Gain/Loss on entrusting others with investments or asset management                                 29,457,327.63

 Gain/Loss on changes in fair value arising from holding of held-for-trading financial
 assets and liabilities and derivative financial assets and liabilities, and investment
                                                                                                     59,718,772.71
 income from disposal of held-for-trading financial assets and liabilities, derivative
 financial assets and liabilities, and other debt investments other than effective hedge



                                                                   3
Konka Group Co., Ltd.                                                                                         Third Quarterly Report 2020


 business related to the Company’s normal operating businesses

 Gain/loss on entrustment loans                                                                                       267,097.29

                                                                                                                     7,388,516.01
 Other non-operating income and expense other than the above

                                                                                                               675,542,207.54
 Other gains and losses that meet definition of exceptional gain/loss

 Less: Income tax effects                                                                                      325,646,046.95

         Non-controlling interests effects (net of tax)                                                         95,446,691.68

 Total                                                                                                       2,109,282,813.00            --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or
listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
              Item                   Amount (RMB)                                                  Reason

                                                          Recurrent government subsidies given in the Company’s ordinary course of
 Tax rebates on software                21,347,468.54
                                                          business at fixed quotas or amounts as per government’s uniform standards


II Total Number of Shareholders and Holdings of Top 10 of Them as at the End of the
Reporting Period

1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
                                                                                                                                     Unit: share

                                                                              Number of preference shareholders with resumed
 Number of ordinary shareholders                               139,572                                                                         0
                                                                              voting rights (if any)

                                                          Top 10 shareholders

                                                                    Shareh                                                Shares in pledge or
                                                      Nature of     olding          Total shares        Restricted              frozen
               Name of shareholder
                                                     shareholder    percent             held           shares held                       Shar
                                                                                                                            Status
                                                                        age                                                               es

 OVERSEAS CHINESE TOWN                              State-owned
                                                                    21.75%          523,746,932                       0
 ENTERPRISES CO., LTD                               corporation

 CITIC        SECURITIES         BROKERAGE          Foreign
                                                                     7.56%          182,100,202                       0
 (HONG KONG) CO., LTD.                              corporation

 GUOYUAN SECURITIES BROKER (HK)                     Foreign
                                                                     2.44%           58,852,625                       0
 CO., LTD.                                          corporation

                                                    Foreign
 HOLY TIME GROUP LIMITED                                             2.38%           57,289,100                       0
                                                    corporation

 GAOLING FUND,L.P.                                  Foreign          2.19%           52,801,250                       0


                                                                    4
Konka Group Co., Ltd.                                                                               Third Quarterly Report 2020


                                              corporation

                                              Domestic
 WANG JINGFENG                                                1.52%       36,569,800                     0
                                              individual

                                              Foreign
 NAM NGAI                                                     0.94%       22,567,540                     0
                                              individual

 CHINA MERCHANTS SECURITIES (HK)              State-owned
                                                              0.82%       19,752,620                     0
 LIMITED                                      corporation

 Haitong International Securities Company     Foreign
                                                              0.52%       12,452,154                     0
 Limited-Account Client                       corporation

 HONG KONG SECURITIES CLEARING                Foreign
                                                              0.37%        8,810,290                     0
 COMPANY LTD.                                 corporation

                                              Top 10 unrestricted shareholders

                                                                                                   Shares by class
             Name of shareholder              Unrestricted ordinary shares held
                                                                                          Class                      Shares

 OVERSEAS CHINESE TOWN                                                            RMB-denominated
                                                                   523,746,932                                       523,746,932
 ENTERPRISES CO., LTD                                                             ordinary share

 CITIC       SECURITIES      BROKERAGE                                            Domestically       listed
                                                                   182,100,202                                       182,100,202
 (HONG KONG) CO., LTD.                                                            foreign share

 GUOYUAN SECURITIES BROKER (HK)                                                   Domestically       listed
                                                                    58,852,625                                        58,852,625
 CO., LTD.                                                                        foreign share

                                                                                  Domestically       listed
 HOLY TIME GROUP LIMITED                                            57,289,100                                        57,289,100
                                                                                  foreign share

                                                                                  Domestically       listed
 GAOLING FUND,L.P.                                                  52,801,250                                        52,801,250
                                                                                  foreign share

                                                                                  RMB-denominated
 WANG JINGFENG                                                      36,569,800                                        36,569,800
                                                                                  ordinary share

                                                                                  Domestically       listed
 NAM NGAI                                                           22,567,540                                        22,567,540
                                                                                  foreign share

 CHINA MERCHANTS SECURITIES (HK)                                                  Domestically       listed
                                                                    19,752,620                                        19,752,620
 LIMITED                                                                          foreign share

 Haitong International Securities Company                                         Domestically       listed
                                                                    12,452,154                                        12,452,154
 Limited-Account Client                                                           foreign share

 HONG KONG SECURITIES CLEARING                                                    RMB-denominated
                                                                      8,810,290                                        8,810,290
 COMPANY LTD.                                                                     ordinary share

                                              Jialong Investment Limited, a wholly-funded subsidiary of the Company ’s first
                                              majority shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for
 Related or acting-in-concert parties among
                                              short), holds 180,001,110 and 18,360,000 common shares in the Company
 shareholders above
                                              respectively through CITIC Securities Brokerage (Hong Kong) Co., Ltd. and
                                              China Merchants Securities (HK) Limited. Jialong Investment Limited and

                                                              5
Konka Group Co., Ltd.                                                                            Third Quarterly Report 2020


                                            Overseas Chinese Town Enterprises Co. are parties acting in concert. Other than
                                            that, it is unknown whether the other shareholders are related parties or
                                            acting-in-concert parties or not.

                                            A-shareholders Wang Jingfeng held 36,309,800 A-shares in the Company through
 Top 10 ordinary shareholders involved in
                                            his account of collateral securities for margin trading in Guotai Junan Securities
 securities margin trading
                                            Co., Ltd..

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.

2. Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable




                                                             6
Konka Group Co., Ltd.                                                                                  Third Quarterly Report 2020




                                         Part III Significant Events

I Changes in Key Financial Statement Line Items and Explanation of why

√ Applicable □ Not applicable
(I) During the Reporting Period, the Company actively promoted strategic transformation and
upgrading by implementing the long-term development strategy of “ Technology + Industry +
Parks ” and centering on “ Semiconductor + New Consumer Electronics + High-Tech Parks ” . In
terms of the semiconductor business, the Company worked on development and commercialization
in respect of Micro LED and Mini LED, in addition to the launch of the Mini LED 8K TV. With
regard to the consumer electronics business, continued efforts were made to enrich product
categories and content, and to enhance coordination between the online and offline marketing
system. By way of live streaming (including live streaming in offline stores), the Company was able
to further boost online and offline sales. As for the high-tech park business, the Yangtze River Delta
Headquarters and the Frestec Refrigeration Park, among others, were launched during the Reporting
Period. These industrial parks are expected to help the Company optimize resource allocation and
promote intelligent upgrading in the high-tech park business.
(II) Changes in Key Financial Statement Line Items
                                                                                                                            Unit: RMB

                                                                                  Percentage
      Item           Q1-Q3 2020           Q1-Q3 2019         Amount of change                          Main reason for change
                                                                                  of change

   Operating                                                                                   Decreases in both operating revenue
                    29,801,145,271.16    41,681,249,260.63 -11,880,103,989.47       -28.50%
    revenue                                                                                    and cost of sales as a result of the

 Cost of sales      27,874,517,742.42    39,601,480,656.43 -11,726,962,914.01       -29.61% pandemic during the Reporting Period

 R&D expense            486,664,300.94     319,102,256.98       167,562,043.96       52.51% Greater investments in R&D

   Return on                                                                                   Disposal of the Company’s interest in
                     1,932,345,020.63      795,857,862.21      1,136,487,158.42     142.80%
  investment                                                                                   Dongguan Konka Investment Co., Ltd.

     Credit
                                                                                               Allowances for doubtful accounts
impairment loss       -419,369,553.83       -89,146,583.72      -330,222,970.11    -370.43%
                                                                                               established in the current period
 (“-” for loss)

     Asset
                                                                                               Inventory valuation allowances
impairment loss         -98,202,971.26       -9,456,436.22       -88,746,535.04    -938.48%
                                                                                               established in the current period
 (“-” for loss)




                                                                7
Konka Group Co., Ltd.                                                                         Third Quarterly Report 2020


II Progress, Influence and Solutions in respect of Significant Events

(I) Private placements of corporate bonds: So far, in respect of the private placement of RMB2.3
billion of corporate bonds, the Company has received the No Objection Letter from the Shenzhen
Stock Exchange; and RMB600 million of privately placed corporate bonds are in the process.
(II) Launching and establishing funds: Currently, Orient Konka Industry M&A Fund respectively
holds 7.75%, 2.75%, 11.73%, 6.05% and 3% equity interest in Jiangxi Yahua Electronic Materials
Co., Ltd., Genew Technologies Co., Ltd., Shenzhen Grentech Technologies Co., Ltd., Huizhou
Xuxin Intelligent Technology Co., Ltd. and Yimeide Technology Co., Ltd. Xinjia Emerging Industry
Development Investment Fund, Wuzhen Jiayu Digital Economy Industry Fund and Yibin Kanghui
Emerging Industry Fund have completed the filing in Asset Management Association of China.
Yancheng Electronic Information Industry Fund has accomplished the signing of the partnership
agreement and now the filing in Asset Management Association of China is underway.
(III) Yibin Smart Terminal High-Tech Industrial Park has been completed and accepted. Konka
Chuzhou Smart Appliances and Equipment Industrial Park, Dongguan Konka Smart Industrial Park,
Chongqing Konka Semiconductor Optoelectronic Industrial Park and Suining Konka Electronic
Technology Industrial Park have obtained the project land and are under construction. Yancheng
Semiconductor Closed Beta Test Base has completed the basic construction and is headed towards
interior decoration. Frestec Refrigeration Park, Konka Production Base for Exported Intelligent
Terminals and Guxian Green Technology Town are in the pipeline and waiting to bid for the target
land in government auditions.
                         Summary of the significant event                        Date of disclosure   Index to disclosure

 Private placement of RMB600 million of corporate bonds                          18 September 2019

 Investment and construction of Dongguan Konka Smart Industrial Park              11 March 2017

 Investment and construction of Konka Chuzhou Smart Appliances and Equipment
                                                                                 5 December 2018
 Industrial Park

 Investment and construction of Yibin Smart Terminal High-Tech Industrial Park   16 December 2017

 Investment and construction of Suining Konka Electronic Technology Industrial
                                                                                  17 October 2018
 Park

 Investment and construction of Chongqing Konka Semiconductor Optoelectronic
                                                                                  9 October 2019
 Industrial Park                                                                                      http://www.cninfo.c
 Investment and construction of Yancheng Semiconductor Closed Beta Base          26 November 2019     om.cn/new/index

 Investment and construction of Guxian Green Technology Town                     26 November 2019

 Orient Konka Industry M &A Fund                                                 7 September 2018

 Xinjia Emerging Industry Development Investment Fund                              4 March 2020

 Wuzhen Jiayu Digital Economy Industry Fund                                       28 March 2020
 Investment and construction of Konka Production Base for Exported Intelligent
                                                                                    6 June 2020
 Terminals

 Private placement of RMB2.3 billion of corporate bonds                             6 June 2020

 Investment and construction of Frestec Refrigeration Park                         21 July 2020



                                                               8
Konka Group Co., Ltd.                                                                            Third Quarterly Report 2020


 Yibin Kanghui Emerging Industry Fund                                                  21 July 2020

 Yancheng Electronic Information Industry Fund                                      23 September 2020

 Completion of Ownership Transfer with the Industrial and Commercial
 Administration in Respect of the Disposal of a 51% Interest in Dongguan Konka      26 September 2020
 Investment Co., Ltd. in an Open Manner

Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company ’ s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Relevant Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Financial Investments
1. Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Progress of Projects Financed with Raised Funds
□ Applicable √ Not applicable
VI 2020 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net
profit, as well as explanation of why:
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
                                                                                                             Unit: RMB’0,000

                 Type                       Funding source        Amount       Undue amount    Unrecovered overdue amount

 Bank’s wealth management product        Self-owned                       0            940                               0

 Total                                                                     0            940                               0




                                                              9
Konka Group Co., Ltd.                                                    Third Quarterly Report 2020


High-risk wealth management transactions with a significant single amount, or with low security,
low liquidity or no principal protection:
□ Applicable √ Not applicable
Wealth management transactions with possible impairments including an expectedly unrecoverable
principal:
□ Applicable √ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Communications with the Investment Community such as Researches, Inquiries and
Interviews Received during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.




                                              10
Konka Group Co., Ltd.                                                                           Third Quarterly Report 2020




                                          Part IV Financial Statements

I Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
                                                        30 September 2020
                                                                                                                  Unit: RMB

                                 Item                                30 September 2020             31 December 2019

 Current assets:

   Monetary assets                                                           6,579,261,424.18             6,599,360,051.61

   Settlement reserve

   Loans to other banks and financial institutions

   Held-for-trading financial assets                                                                        61,494,666.97

   Derivative financial assets

   Notes receivable                                                          1,846,727,412.55             2,838,041,432.89

   Accounts receivable                                                       5,879,294,945.56             4,416,179,657.87

   Receivables financing                                                       90,635,143.47               143,174,271.82

   Prepayments                                                               2,580,862,758.73             2,072,550,811.86

   Premiums receivable

   Reinsurance receivables

   Receivable reinsurance contract reserve

   Other receivables                                                         1,710,567,669.55             1,772,183,366.49

      Including: Interest receivable                                           19,432,661.26                  7,807,400.40

                   Dividends receivable                                           547,848.62                   547,848.62

   Financial assets purchased under resale agreements

   Inventories                                                               5,005,680,260.84             5,318,503,044.69

   Contract assets                                                             57,517,986.07

   Assets held for sale

   Current portion of non-current assets                                       93,761,768.42               108,087,016.22

   Other current assets                                                      1,566,320,040.85             2,093,212,552.25

 Total current assets                                                       25,410,629,410.22           25,422,786,872.67

 Non-current assets:

   Loans and advances to customers



                                                               11
Konka Group Co., Ltd.                                                             Third Quarterly Report 2020


   Debt investments

   Other debt investments

   Long-term receivables                                        406,490,863.41               410,509,555.85

   Long-term equity investments                                4,080,885,163.89             3,465,541,196.89

   Investments in other equity instruments                       26,642,171.36                21,642,170.36

   Other non-current financial assets                          1,812,985,572.95             1,753,121,727.83

   Investment property                                          388,983,302.24               400,197,374.07

   Fixed assets                                                2,397,168,269.57             2,561,254,191.55

   Construction in progress                                    6,012,462,841.51             4,291,544,368.52

   Productive living assets

   Oil and gas assets

   Right-of-use assets

   Intangible assets                                           1,135,960,506.05             1,213,271,713.22

   Development costs                                               1,430,936.03

   Goodwill                                                     779,260,296.41               779,260,296.41

   Long-term prepaid expense                                    119,132,580.66               107,590,078.88

   Deferred income tax assets                                  1,044,085,436.95              987,763,182.17

   Other non-current assets                                    1,168,931,874.54             1,172,472,723.85

 Total non-current assets                                     19,374,419,815.57           17,164,168,579.60

 Total assets                                                 44,785,049,225.79           42,586,955,452.27

 Current liabilities:

   Short-term borrowings                                      11,545,605,169.58           10,332,687,239.63

   Borrowings from the central bank

   Loans from other banks and financial institutions

   Held-for-trading financial liabilities

   Derivative financial liabilities

   Notes payable                                               1,206,473,051.09             1,319,396,374.37

   Accounts payable                                            5,853,839,416.94             5,797,822,479.60

   Advances from customers                                                                  1,076,856,387.08

   Contract liabilities                                        1,637,940,617.00

   Financial assets sold under repurchase agreements

   Customer deposits and deposits from other banks and
 financial institutions

   Payables for acting trading of securities

   Payables for underwriting of securities


                                                         12
Konka Group Co., Ltd.                                                                   Third Quarterly Report 2020


   Employee benefits payable                                          349,178,094.68               426,870,498.58

   Taxes and levies payable                                           301,663,370.44               607,845,294.99

   Other payables                                                    2,130,027,470.51             2,374,287,243.20

      Including: Interest payable                                     153,125,872.24               227,831,108.53

                     Dividends payable

   Fees and commissions payable

   Reinsurance payables

   Liabilities directly associated with assets held for sale

   Current portion of non-current liabilities                          13,023,381.44               210,066,077.13

   Other current liabilities

 Total current liabilities                                          23,037,750,571.68           22,145,831,594.58

 Non-current liabilities:

   Insurance contract reserve

   Long-term borrowings                                              5,169,802,097.54             4,890,315,729.90

   Bonds payable                                                     4,991,837,002.15             4,987,709,643.64

      Including: Preference shares

                     Perpetual bonds

   Lease liabilities

   Long-term payables                                                 713,894,401.32               383,287,104.62

   Long-term employee benefits payable                                   5,286,794.22                 5,565,646.72

   Provisions                                                         137,192,250.40                   206,591.51

   Deferred income                                                    158,620,881.77               151,874,258.45

   Deferred income tax liabilities                                     88,347,193.28                95,467,096.05

   Other non-current liabilities                                      110,361,780.89

 Total non-current liabilities                                      11,375,342,401.57           10,514,426,070.89

 Total liabilities                                                  34,413,092,973.25           32,660,257,665.47

 Owners’ equity:

   Share capital                                                     2,407,945,408.00             2,407,945,408.00

   Other equity instruments

      Including: Preference shares

                     Perpetual bonds

   Capital reserves                                                   230,368,577.09               230,368,577.09

   Less: Treasury stock

   Other comprehensive income                                          -66,091,804.01               -21,293,103.52



                                                               13
Konka Group Co., Ltd.                                                                        Third Quarterly Report 2020


   Specific reserve

   Surplus reserves                                                       1,211,721,109.67             1,211,721,109.67

   General reserve

   Retained earnings                                                      4,734,730,023.31             4,239,763,606.89
 Total equity attributable to owners of the Company as the
                                                                          8,518,673,314.06             8,068,505,598.13
 parent

 Non-controlling interests                                                1,853,282,938.48             1,858,192,188.67

 Total owners’ equity                                                   10,371,956,252.54             9,926,697,786.80

 Total liabilities and owners’ equity                                   44,785,049,225.79           42,586,955,452.27

Legal representative: Liu Fengxi CFO: Li Chunlei                  Head of the financial department: Feng Junxiu
2. Balance Sheet of the Company as the Parent
                                                                                                               Unit: RMB

                                 Item                              30 September 2020            31 December 2019

 Current assets:

   Monetary assets                                                       2,949,020,415.52              2,498,077,198.12

   Held-for-trading financial assets                                                                     61,494,666.97

   Derivative financial assets

   Notes receivable                                                      1,325,764,809.15              2,148,312,821.38

   Accounts receivable                                                   5,604,165,653.64              9,564,720,940.39

   Receivables financing                                                                                 66,002,903.68

   Prepayments                                                           1,003,172,364.65               911,315,168.95

   Other receivables                                                     8,734,438,082.30            10,552,820,915.47

      Including: Interest receivable                                        11,146,879.93                  7,431,353.86

                   Dividends receivable                                    349,515,715.50               518,580,871.02

   Inventories                                                             257,339,197.13               218,644,308.47

   Contract assets

   Assets held for sale

   Current portion of non-current assets

   Other current assets                                                    753,175,326.36              1,096,689,897.40

 Total current assets                                                   20,627,075,848.75            27,118,078,820.83

 Non-current assets:

   Debt investments

   Other debt investments

   Long-term receivables

   Long-term equity investments                                          8,992,378,578.30              7,712,084,967.88


                                                             14
Konka Group Co., Ltd.                                                                   Third Quarterly Report 2020


   Investments in other equity instruments                             17,940,215.36                12,940,214.36

   Other non-current financial assets                                 250,230,000.00               250,230,000.00

   Investment property                                                388,983,302.24               400,197,374.07

   Fixed assets                                                       430,537,915.34               444,107,402.57

   Construction in progress                                            75,312,908.26                40,933,270.51

   Productive living assets

   Oil and gas assets

   Right-of-use assets

   Intangible assets                                                   74,981,659.82                80,470,750.60

   Development costs

   Goodwill

   Long-term prepaid expense                                           14,247,153.98                39,047,325.68

   Deferred income tax assets                                         815,152,260.37               883,234,085.45

   Other non-current assets

 Total non-current assets                                           11,059,763,993.67             9,863,245,391.12

 Total assets                                                       31,686,839,842.42           36,981,324,211.95

 Current liabilities:

   Short-term borrowings                                             4,906,232,184.91             5,014,312,913.74

   Held-for-trading financial liabilities

   Derivative financial liabilities

   Notes payable                                                     1,764,184,964.11             2,610,991,473.69

   Accounts payable                                                  6,996,269,041.93           11,078,648,690.19

   Advances from customers                                                                         318,839,961.84

   Contract liabilities                                               198,727,133.74

   Employee benefits payable                                          130,898,131.46               125,402,307.95

   Taxes and levies payable                                              3,200,613.86                 9,305,344.42

   Other payables                                                    4,026,877,947.82             3,193,392,734.69

      Including: Interest payable                                     147,583,113.80               223,847,860.57

                  Dividends payable

   Liabilities directly associated with assets held for sale

   Current portion of non-current liabilities                                                      130,512,375.00

   Other current liabilities

 Total current liabilities                                          18,026,390,017.83           22,481,405,801.52

 Non-current liabilities:



                                                               15
Konka Group Co., Ltd.                                                 Third Quarterly Report 2020


   Long-term borrowings                            2,353,034,612.32             3,438,055,729.90

   Bonds payable                                   4,991,837,002.15             4,987,709,643.64

      Including: Preference shares

                     Perpetual bonds

   Lease liabilities

   Long-term payables                                24,965,378.82                21,855,688.19

   Long-term employee benefits payable

   Provisions                                          5,426,045.35                  206,591.51

   Deferred income                                   45,071,455.73                59,545,839.30

   Deferred income tax liabilities

   Other non-current liabilities                     57,440,562.28

 Total non-current liabilities                     7,477,775,056.65             8,507,373,492.54

 Total liabilities                                25,504,165,074.48           30,988,779,294.06

 Owners’ equity:

   Share capital                                   2,407,945,408.00             2,407,945,408.00

   Other equity instruments

      Including: Preference shares

                     Perpetual bonds

   Capital reserves                                 114,018,066.79               114,018,066.79

   Less: Treasury stock

   Other comprehensive income                         -2,682,217.31                -2,682,217.31

   Specific reserve

   Surplus reserves                                1,227,564,785.19             1,227,564,785.19

   Retained earnings                               2,435,828,725.27             2,245,698,875.22

 Total owners’ equity                             6,182,674,767.94             5,992,544,917.89

 Total liabilities and owners’ equity            31,686,839,842.42           36,981,324,211.95

3. Consolidated Income Statement for Q3
                                                                                        Unit: RMB

                                 Item            Q3 2020                      Q3 2019

 1. Revenues                                      12,276,961,374.42           15,644,806,446.79

   Including: Operating revenue                   12,276,961,374.42           15,644,806,446.79

                Interest income

                Insurance premium income

                Fee and commission income



                                            16
Konka Group Co., Ltd.                                                                      Third Quarterly Report 2020


 2. Costs and expenses                                                 12,941,220,330.25           16,025,188,376.66

   Including: Cost of sales                                            11,605,524,309.54           14,927,438,285.30

                Interest expense

                Fee and commission expense

                Surrenders

                Net insurance claims paid
                Net amount provided as insurance contract
 reserve

                Expenditure on policy dividends

                Reinsurance premium expense

                Taxes and levies                                           19,117,752.68               18,882,712.84

                Selling expense                                          443,120,418.41               537,449,008.46

                Administrative expense                                   290,185,810.31               214,581,564.94

                R&D expense                                              228,614,714.65               161,891,918.04

                Finance costs                                            354,657,324.66               164,944,887.08

                   Including: Interest expense                           209,255,381.22               286,311,826.27

                                Interest income                             8,632,937.66               28,365,849.61

 Add: Other income                                                       149,944,065.29               298,288,604.77

        Return on investment (“-” for loss)                           1,333,651,444.04              236,696,834.29

           Including: Share of profit or loss of joint ventures
                                                                             468,102.97                -17,103,633.76
 and associates
             Income from the derecognition of financial assets
 at amortized cost (“-” for loss)

        Exchange gain (“-” for loss)

        Net gain on exposure hedges (“-” for loss)

        Gain on changes in fair value (“-” for loss)

        Credit impairment loss (“-” for loss)                          -379,482,046.65               -39,670,359.96

        Asset impairment loss (“-” for loss)                            -96,217,311.31                 2,261,331.07

        Asset disposal income (“-” for loss)                            89,624,963.47

 3. Operating profit (“-” for loss)                                    433,262,159.01               117,194,480.30

 Add: Non-operating income                                                13,906,702.31                41,224,843.98

 Less: Non-operating expense                                                6,986,036.13                 1,809,247.39

 4. Gross profit (“-” for loss)                                        440,182,825.19               156,610,076.89

 Less: Income tax expense                                                 -29,221,823.79                 4,284,277.99

 5. Net profit (“-” for net loss)                                      469,404,648.98               152,325,798.90



                                                                  17
Konka Group Co., Ltd.                                                                       Third Quarterly Report 2020


   5.1 By operating continuity

         5.1.1 Net profit from continuing operations (“-” for net
                                                                           469,404,648.98              152,325,798.90
 loss)

         5.1.2 Net profit from discontinued operations (“-” for
 net loss)

   5.2 By ownership
         5.2.1 Net profit attributable to owners of the Company as
                                                                           520,661,894.19               97,725,667.63
 the parent

         5.2.1 Net profit attributable to non-controlling interests        -51,257,245.21               54,600,131.27

 6. Other comprehensive income, net of tax                                 -48,021,475.59                  -757,628.66

   Attributable to owners of the Company as the parent                     -44,481,996.02                -2,540,311.85

         6.1 Items that will not be reclassified to profit or loss

           6.1.1 Changes caused by remeasurements on defined
 benefit schemes
           6.1.2 Other comprehensive income that will not be
 reclassified to profit or loss under the equity method
           6.1.3 Changes in the fair value of investments in other
 equity instruments
           6.1.4 Changes in the fair value arising from changes in
 own credit risk

           6.1.5 Other

         6.2 Items that will be reclassified to profit or loss             -44,481,996.02                -2,540,311.85

           6.2.1 Other comprehensive income that will be
 reclassified to profit or loss under the equity method
           6.2.2 Changes in the fair value of other debt
 investments
           6.2.3 Other comprehensive income arising from the
 reclassification of financial assets
           6.2.4 Credit impairment allowance for other debt
 investments

           6.2.5 Reserve for cash flow hedges
           6.2.6 Differences arising from the translation of
                                                                           -44,481,996.02                -2,540,311.85
 foreign currency-denominated financial statements

           6.2.7 Other

   Attributable to non-controlling interests                                -3,539,479.57                 1,782,683.19

 7. Total comprehensive income                                             421,383,173.39              151,568,170.24

   Attributable to owners of the Company as the parent                     476,179,898.17               95,185,355.78

   Attributable to non-controlling interests                               -54,796,724.78               56,382,814.46

 8. Earnings per share


                                                                      18
Konka Group Co., Ltd.                                                                              Third Quarterly Report 2020


   8.1 Basic earnings per share                                                          0.2162                       0.0406

   8.2 Diluted earnings per share                                                        0.2162                       0.0406

Legal representative: Liu Fengxi CFO: Li Chunlei                         Head of the financial department: Feng Junxiu
4. Income Statement of the Company as the Parent for Q3
                                                                                                                     Unit: RMB

                                    Item                                      Q3 2020                      Q3 2019

 1. Operating revenue                                                           1,874,354,128.92             3,420,624,874.36

 Less: Cost of sales                                                            1,859,732,505.45             3,398,476,539.34

         Taxes and levies                                                           1,598,888.37                 2,196,972.53

         Selling expense                                                           59,995,538.39              289,700,691.74

         Administrative expense                                                   153,151,582.89               97,690,345.27

         R&D expense                                                               11,884,823.72                11,583,116.72

         Finance costs                                                            222,105,925.22               51,277,210.40

           Including: Interest expense                                            206,857,085.73              221,815,070.42

                         Interest income                                          116,575,711.62              107,028,598.07

 Add: Other income                                                                  8,462,482.65               16,519,680.07

          Return on investment (“-” for loss)                                   523,004,913.64              151,953,623.56

            Including: Share of profit or loss of joint ventures
                                                                                   -7,427,078.59                -7,857,057.42
 and associates
               Income from the derecognition of financial assets
 at amortized cost (“-” for loss)

          Net gain on exposure hedges (“-” for loss)

          Gain on changes in fair value (“-” for loss)

          Credit impairment loss (“-” for loss)                                -212,612,195.51               -20,000,000.00

          Asset impairment loss (“-” for loss)

          Asset disposal income (“-” for loss)                                   89,600,000.00

 2. Operating profit (“-” for loss)                                             -25,659,934.34              -281,826,698.01

 Add: Non-operating income                                                          8,790,701.45                  185,713.17

 Less: Non-operating expense                                                        2,828,750.98                  169,334.48

 3. Gross profit (“-” for loss)                                                 -19,697,983.87              -281,810,319.32

 Less: Income tax expense                                                         -15,512,798.22               -65,507,220.62

 4. Net profit (“-” for net loss)                                                -4,185,185.65              -216,303,098.70

   4.1 Net profit from continuing operations (“-” for net loss)                  -4,185,185.65              -216,303,098.70

   4.2 Net profit from discontinued operations (“-” for net
 loss)

 5. Other comprehensive income, net of tax

                                                                    19
Konka Group Co., Ltd.                                                                        Third Quarterly Report 2020


   5.1 Items that will not be reclassified to profit or loss

      5.1.1 Changes caused by remeasurements on defined
 benefit schemes
      5.1.2 Other comprehensive income that will not be
 reclassified to profit or loss under the equity method
      5.1.3 Changes in the fair value of investments in other
 equity instruments
      5.1.4 Changes in the fair value arising from changes in
 own credit risk

      5.1.5 Other

   5.2 Items that will be reclassified to profit or loss

      5.2.1 Other comprehensive income that will be
 reclassified to profit or loss under the equity method
      5.2.2 Changes in the fair value of other debt investments

      5.2.3 Other comprehensive income arising from the
 reclassification of financial assets
      5.2.4 Credit impairment allowance for other debt
 investments

      5.2.5 Reserve for cash flow hedges

      5.2.6 Differences arising from the translation of foreign
 currency-denominated financial statements

      5.2.7 Other

 6. Total comprehensive income                                               -4,185,185.65              -216,303,098.70

 7. Earnings per share

     7.1 Basic earnings per share

     7.2 Diluted earnings per share

5. Consolidated Income Statement for Q1~Q3
                                                                                                               Unit: RMB

                               Item                                    Q1~Q3 2020                  Q1~Q3 2019

 1. Revenues                                                             29,801,145,271.16           41,681,249,260.63

   Including: Operating revenue                                          29,801,145,271.16           41,681,249,260.63

               Interest income

               Insurance premium income

               Fee and commission income

 2. Costs and expenses                                                   31,294,628,818.95           42,723,961,198.82

   Including: Cost of sales                                              27,874,517,742.42           39,601,480,656.43

               Interest expense

               Fee and commission expense


                                                                  20
Konka Group Co., Ltd.                                                                         Third Quarterly Report 2020


                  Surrenders

                  Net insurance claims paid
                  Net amount provided as insurance contract
 reserve

                  Expenditure on policy dividends

                  Reinsurance premium expense

                  Taxes and levies                                           48,302,193.04                 56,271,805.11

                  Selling expense                                          1,412,344,800.39             1,605,394,922.82

                  Administrative expense                                    731,101,590.75               562,506,207.37

                  R&D expense                                               486,664,300.94               319,102,256.98

                  Finance costs                                             741,698,191.41               579,205,350.11

                    Including: Interest expense                             742,208,965.50               815,995,662.79

                                  Interest income                           132,894,768.38               147,039,381.38

 Add: Other income                                                          468,038,917.63               642,173,576.13

          Return on investment (“-” for loss)                            1,932,345,020.63              795,857,862.21

             Including: Share of profit or loss of joint ventures
                                                                             45,185,728.73                 -8,562,359.20
 and associates
               Income from the derecognition of financial assets
 at amortized cost (“-” for loss)

          Exchange gain (“-” for loss)

          Net gain on exposure hedges (“-” for loss)

          Gain on changes in fair value (“-” for loss)                                                   -3,005,381.67

          Credit impairment loss (“-” for loss)                          -419,369,553.83                -89,146,583.72

          Asset impairment loss (“-” for loss)                             -98,202,971.26                -9,456,436.22

          Asset disposal income (“-” for loss)                            188,079,246.33               293,705,840.64

 3. Operating profit (“-” for loss)                                       577,407,111.71               587,416,939.18

 Add: Non-operating income                                                   22,568,475.79                63,494,286.07

 Less: Non-operating expense                                                 14,122,911.48                  5,278,988.90

 4. Gross profit (“-” for loss)                                           585,852,676.02               645,632,236.35

 Less: Income tax expense                                                    44,203,698.68                14,595,671.18

 5. Net profit (“-” for net loss)                                         541,648,977.34               631,036,565.17

   5.1 By operating continuity

         5.1.1 Net profit from continuing operations (“-” for net
                                                                            541,648,977.34               631,036,565.17
 loss)

         5.1.2 Net profit from discontinued operations (“-” for
 net loss)


                                                                      21
Konka Group Co., Ltd.                                                                             Third Quarterly Report 2020


   5.2 By ownership

      5.2.1 Net profit attributable to owners of the Company
                                                                                 615,363,686.82              450,492,688.36
 as the parent

      5.2.1 Net profit attributable to non-controlling interests                 -73,714,709.48              180,543,876.81

 6. Other comprehensive income, net of tax                                       -46,863,350.96                -3,865,740.99

   Attributable to owners of the Company as the parent                           -44,798,700.49                -6,200,198.54

      6.1 Items that will not be reclassified to profit or loss                                                -4,800,000.00

         6.1.1 Changes caused by remeasurements on defined
 benefit schemes
         6.1.2 Other comprehensive income that will not be
 reclassified to profit or loss under the equity method
         6.1.3 Changes in the fair value of investments in other
                                                                                                               -4,800,000.00
 equity instruments
         6.1.4 Changes in the fair value arising from changes
 in own credit risk
         6.1.5 Other

      6.2 Items that will be reclassified to profit or loss                      -44,798,700.49                -1,400,198.54

         6.2.1 Other comprehensive income that will be
 reclassified to profit or loss under the equity method
         6.2.2 Changes in the fair value of other debt
 investments
         6.2.3 Other comprehensive income arising from the
 reclassification of financial assets
         6.2.4 Credit impairment allowance for other debt
 investments

         6.2.5 Reserve for cash flow hedges

         6.2.6 Differences arising from the translation of
                                                                                 -44,798,700.49                -1,400,198.54
 foreign currency-denominated financial statements

         6.2.7 Other

   Attributable to non-controlling interests                                      -2,064,650.47                 2,334,457.55

 7. Total comprehensive income                                                   494,785,626.38              627,170,824.18

   Attributable to owners of the Company as the parent                           570,564,986.33              444,292,489.82

   Attributable to non-controlling interests                                     -75,779,359.95              182,878,334.36

 8. Earnings per share

   8.1 Basic earnings per share                                                         0.2556                       0.1871

   8.2 Diluted earnings per share                                                       0.2556                       0.1871

Legal representative: Liu Fengxi CFO: Li Chunlei                        Head of the financial department: Feng Junxiu
6. Income Statement of the Company as the Parent for Q1~Q3
                                                                                                                    Unit: RMB

                                                                   22
Konka Group Co., Ltd.                                                                          Third Quarterly Report 2020


                                    Item                                 Q1~Q3 2020                  Q1~Q3 2019

 1. Operating revenue                                                       5,249,800,159.81             8,788,646,584.76

 Less: Cost of sales                                                        4,810,832,336.30             8,662,626,032.49

         Taxes and levies                                                       4,054,892.86                 5,247,218.40

         Selling expense                                                      406,754,081.49              892,638,143.13

         Administrative expense                                               313,001,635.63              214,332,248.59

         R&D expense                                                           37,421,071.21               33,467,367.19

         Finance costs                                                        396,462,530.95              315,092,491.81

           Including: Interest expense                                        637,210,813.14              706,461,849.17

                         Interest income                                      359,545,756.63              332,427,396.10

 Add: Other income                                                             68,743,421.98               42,403,642.65

          Return on investment (“-” for loss)                             1,031,869,975.34              337,929,362.44
            Including: Share of profit or loss of joint ventures
                                                                               -8,126,917.97                -3,928,528.71
 and associates
               Income from the derecognition of financial assets
 at amortized cost (“-” for loss)
          Net gain on exposure hedges (“-” for loss)

          Gain on changes in fair value (“-” for loss)                                                    -3,005,381.67

          Credit impairment loss (“-” for loss)                            -222,810,467.29               -26,660,947.01

          Asset impairment loss (“-” for loss)                                5,726,253.37                -3,172,282.22

          Asset disposal income (“-” for loss)                              188,200,000.00                       200.00

 2. Operating profit (“-” for loss)                                         353,002,794.77              -987,262,322.66

 Add: Non-operating income                                                      9,106,266.95                 1,708,572.98

 Less: Non-operating expense                                                    3,054,317.36                 1,126,692.02

 3. Gross profit (“-” for loss)                                             359,054,744.36              -986,680,441.70

 Less: Income tax expense                                                      68,788,742.83              -240,955,012.03

 4. Net profit (“-” for net loss)                                           290,266,001.53              -745,725,429.67

   4.1 Net profit from continuing operations (“-” for net loss)             290,266,001.53              -745,725,429.67

   4.2 Net profit from discontinued operations (“-” for net
 loss)

 5. Other comprehensive income, net of tax

   5.1 Items that will not be reclassified to profit or loss

         5.1.1 Changes caused by remeasurements on defined
 benefit schemes
         5.1.2 Other comprehensive income that will not be
 reclassified to profit or loss under the equity method


                                                                    23
Konka Group Co., Ltd.                                                                        Third Quarterly Report 2020


      5.1.3 Changes in the fair value of investments in other
 equity instruments
      5.1.4 Changes in the fair value arising from changes in
 own credit risk
      5.1.5 Other

   5.2 Items that will be reclassified to profit or loss

      5.2.1 Other comprehensive income that will be
 reclassified to profit or loss under the equity method

      5.2.2 Changes in the fair value of other debt investments
      5.2.3 Other comprehensive income arising from the
 reclassification of financial assets
      5.2.4 Credit impairment allowance for other debt
 investments
      5.2.5 Reserve for cash flow hedges

      5.2.6 Differences arising from the translation of foreign
 currency-denominated financial statements

      5.2.7 Other

 6. Total comprehensive income                                              290,266,001.53              -745,725,429.67

 7. Earnings per share

     7.1 Basic earnings per share

     7.2 Diluted earnings per share

7. Consolidated Cash Flow Statement for Q1~Q3
                                                                                                               Unit: RMB

                               Item                                    Q1~Q3 2020                  Q1~Q3 2019

 1. Cash flows from operating activities:

   Proceeds from sale of commodities and rendering of
                                                                         29,184,784,329.28           41,460,695,427.76
 services
   Net increase in customer deposits and deposits from other
 banks and financial institutions

   Net increase in borrowings from the central bank

   Net increase in loans from other financial institutions

   Premiums received on original insurance contracts

   Net proceeds from reinsurance

   Net increase in deposits and investments of policy holders

   Interest, fees and commissions received

   Net increase in loans from other banks and financial
 institutions

   Net increase in proceeds from repurchase transactions



                                                                  24
Konka Group Co., Ltd.                                                                      Third Quarterly Report 2020


   Net proceeds from acting trading of securities

   Tax and levy rebates                                                  158,747,704.56               596,940,645.18

   Cash generated from other operating activities                       2,779,748,792.23             2,810,409,063.92

 Subtotal of cash generated from operating activities                  32,123,280,826.07           44,868,045,136.86

   Payments for commodities and services                               28,608,102,086.75           42,633,289,918.22

   Net increase in loans and advances to customers
   Net increase in deposits in the central bank and other banks
 and financial institutions

   Payments for claims on original insurance contracts

   Net increase in loans to other banks and financial
 institutions

   Interest, fees and commissions paid

   Policy dividends paid

   Cash paid to and for employees                                       1,359,110,793.58             1,354,791,311.98

   Taxes and levies paid                                                 785,311,074.53               604,891,331.46

   Cash used in other operating activities                              2,546,630,231.54             2,847,652,417.14

 Subtotal of cash used in operating activities                         33,299,154,186.40           47,440,624,978.80

 Net cash generated from/used in operating activities                  -1,175,873,360.33            -2,572,579,841.94

 2. Cash flows from investing activities:

   Proceeds from disinvestment                                           695,562,072.60               222,405,975.50

   Return on investment                                                   97,902,372.90               109,794,038.16

   Net proceeds from the disposal of fixed assets, intangible
                                                                         305,251,144.96               123,083,476.75
 assets and other long-lived assets
   Net proceeds from the disposal of subsidiaries and other
                                                                         588,620,437.06                 90,801,480.11
 business units

   Cash generated from other investing activities                       2,057,357,513.79             1,757,416,878.42

 Subtotal of cash generated from investing activities                   3,744,693,541.31             2,303,501,848.94

   Payments for the acquisition of fixed assets, intangible
                                                                        2,417,483,605.63             1,280,750,151.25
 assets and other long-lived assets

   Payments for investments                                              162,157,119.25              1,236,659,360.00

   Net increase in pledged loans granted

   Net payments for the acquisition of subsidiaries and other
 business units

   Cash used in other investing activities                               155,520,775.46               800,033,420.00

 Subtotal of cash used in investing activities                          2,735,161,500.34             3,317,442,931.25

 Net cash generated from/used in investing activities                   1,009,532,040.97            -1,013,941,082.31

 3. Cash flows from financing activities:

                                                                  25
Konka Group Co., Ltd.                                                                       Third Quarterly Report 2020


   Capital contributions received                                         133,039,439.25               316,350,268.17

      Including: Capital contributions by non-controlling
                                                                          133,039,439.25               316,350,268.17
 interests to subsidiaries

   Borrowings received                                                  14,453,038,928.17           21,816,836,119.64

   Cash generated from other financing activities                        1,396,812,658.86              662,446,627.50

 Subtotal of cash generated from financing activities                   15,982,891,026.28           22,795,633,015.31

   Repayment of borrowings                                              13,243,185,186.02           15,301,413,298.24

   Interest and dividends paid                                            745,791,874.18               674,111,965.45

      Including: Dividends paid by subsidiaries to
                                                                             4,513,500.00               33,607,322.95
 non-controlling interests
   Cash used in other financing activities                               1,347,499,266.63              534,292,325.64

 Subtotal of cash used in financing activities                          15,336,476,326.83           16,509,817,589.33

 Net cash generated from/used in financing activities                     646,414,699.45              6,285,815,425.98

 4. Effect of foreign exchange rates changes on cash and cash
                                                                           -22,135,152.50                 7,020,688.15
 equivalents

 5. Net increase in cash and cash equivalents                             457,938,227.59              2,706,315,189.88

 Add: Cash and cash equivalents, beginning of the period                 4,493,701,917.22             3,434,149,481.72

 6. Cash and cash equivalents, end of the period                         4,951,640,144.81             6,140,464,671.60

8. Cash Flow Statement of the Company as the Parent for Q1~Q3
                                                                                                              Unit: RMB

                              Item                                   Q1~Q3 2020                   Q1~Q3 2019

 1. Cash flows from operating activities:

   Proceeds from sale of commodities and rendering of
                                                                         5,287,315,115.68           15,276,237,884.82
 services

   Tax and levy rebates                                                    42,763,151.28                48,371,777.09

   Cash generated from other operating activities                      10,273,988,822.96              9,241,152,305.86

 Subtotal of cash generated from operating activities                  15,604,067,089.92            24,565,761,967.77

   Payments for commodities and services                                3,473,166,490.54            13,228,154,713.94

   Cash paid to and for employees                                         280,122,707.16               538,054,123.81

   Taxes and levies paid                                                   10,631,888.24                44,781,446.37

   Cash used in other operating activities                             10,751,419,805.68            10,978,851,545.86

 Subtotal of cash used in operating activities                         14,515,340,891.62            24,789,841,829.98

 Net cash generated from/used in operating activities                   1,088,726,198.30               -224,079,862.21

 2. Cash flows from investing activities:

   Proceeds from disinvestment                                          1,217,936,530.00               166,685,882.00

   Return on investment                                                   187,723,779.95                96,058,958.81


                                                                26
Konka Group Co., Ltd.                                                                    Third Quarterly Report 2020


   Net proceeds from the disposal of fixed assets, intangible
                                                                       188,253,456.56                   255,200.79
 assets and other long-lived assets
   Net proceeds from the disposal of subsidiaries and other
 business units
   Cash generated from other investing activities                     1,935,867,847.12              777,615,551.82

 Subtotal of cash generated from investing activities                 3,529,781,613.63             1,040,615,593.42

   Payments for the acquisition of fixed assets, intangible
                                                                        65,949,474.37                59,662,429.02
 assets and other long-lived assets

   Payments for investments                                           1,340,905,815.71              703,450,000.00
   Net payments for the acquisition of subsidiaries and other
 business units

   Cash used in other investing activities                             126,968,061.44              5,137,623,500.00

 Subtotal of cash used in investing activities                        1,533,823,351.52             5,900,735,929.02

 Net cash generated from/used in investing activities                 1,995,958,262.11            -4,860,120,335.60

 3. Cash flows from financing activities:

   Capital contributions received

   Borrowings received                                                9,378,654,852.74           11,517,566,793.66

   Cash generated from other financing activities                      132,564,434.59                  2,500,000.00

 Subtotal of cash generated from financing activities                 9,511,219,287.33           11,520,066,793.66

   Repayment of borrowings                                           10,634,198,610.76             4,960,897,423.76

   Interest and dividends paid                                         663,698,397.97               561,130,301.68

   Cash used in other financing activities                             494,170,138.20                10,922,037.42

 Subtotal of cash used in financing activities                       11,792,067,146.93             5,532,949,762.86

 Net cash generated from/used in financing activities                -2,280,847,859.60             5,987,117,030.80

 4. Effect of foreign exchange rates changes on cash and cash
                                                                         -5,866,676.75               -10,762,185.92
 equivalents

 5. Net increase in cash and cash equivalents                          797,969,924.06               892,154,647.07

 Add: Cash and cash equivalents, beginning of the period              1,337,342,186.92             1,497,794,555.85

 6. Cash and cash equivalents, end of the period                      2,135,312,110.98             2,389,949,202.92

II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020)
of the New Accounting Standards Governing Revenue and Leases
√ Applicable □ Not applicable
Whether items of the balance sheets at the beginning of the year need adjustments
√ Yes □ No
Consolidated balance sheet
                                                                                                           Unit: RMB


                                                                27
Konka Group Co., Ltd.                                                                  Third Quarterly Report 2020


              Item               31 December 2019              1 January 2020                Adjustment

 Current assets:

   Monetary assets                     6,599,360,051.61             6,599,360,051.61

   Settlement reserve
   Loans to other banks and
 financial institutions
   Held-for-trading
                                         61,494,666.97                 61,494,666.97
 financial assets
   Derivative financial
 assets

   Notes receivable                    2,838,041,432.89             2,838,041,432.89

   Accounts receivable                 4,416,179,657.87             4,419,658,123.40                 3,478,465.53

   Receivables financing                143,174,271.82               143,174,271.82

   Prepayments                         2,072,550,811.86             2,072,550,811.86

   Premiums receivable

   Reinsurance receivables

   Receivable reinsurance
 contract reserve

   Other receivables                   1,772,183,366.49             1,772,183,366.49

      Including: Interest
                                           7,807,400.40                 7,807,400.40
 receivable

                     Dividends
                                            547,848.62                   547,848.62
 receivable

   Financial assets
 purchased under resale
 agreements
   Inventories                         5,318,503,044.69             5,307,497,440.88               -11,005,603.81

   Contract assets                                                     13,248,335.74               13,248,335.74

   Assets held for sale

   Current portion of
                                        108,087,016.22               108,087,016.22
 non-current assets

   Other current assets                2,093,212,552.25             2,104,218,156.06                11,005,603.81

 Total current assets                 25,422,786,872.67            25,439,513,673.94               16,726,801.27

 Non-current assets:

   Loans and advances to
 customers

   Debt investments

   Other debt investments


                                                          28
Konka Group Co., Ltd.                                                      Third Quarterly Report 2020


   Long-term receivables        410,509,555.85           410,509,555.85

   Long-term equity
                               3,465,541,196.89         3,465,541,196.89
 investments

   Investments in other
                                 21,642,170.36            21,642,170.36
 equity instruments

   Other non-current
                               1,753,121,727.83         1,753,121,727.83
 financial assets

   Investment property          400,197,374.07           400,197,374.07

   Fixed assets                2,561,254,191.55         2,561,254,191.55

   Construction in progress    4,291,544,368.52         4,291,544,368.52

   Productive living assets

   Oil and gas assets

   Right-of-use assets

   Intangible assets           1,213,271,713.22         1,213,271,713.22

   Development costs

   Goodwill                     779,260,296.41           779,260,296.41

   Long-term prepaid
                                107,590,078.88           107,590,078.88
 expense
   Deferred income tax
                                987,763,182.17           987,763,182.17
 assets

   Other non-current assets    1,172,472,723.85         1,172,472,723.85

 Total non-current assets     17,164,168,579.60        17,164,168,579.60

 Total assets                 42,586,955,452.27        42,603,682,253.54               16,726,801.27

 Current liabilities:

   Short-term borrowings      10,332,687,239.63        10,332,687,239.63
   Borrowings from the
 central bank
   Loans from other banks
 and financial institutions
   Held-for-trading
 financial liabilities

   Derivative financial
 liabilities

   Notes payable               1,319,396,374.37         1,319,396,374.37

   Accounts payable            5,797,822,479.60         5,797,822,479.60
   Advances from
                               1,076,856,387.08                                     -1,076,856,387.08
 customers

   Contract liabilities                                  959,538,151.80               959,538,151.80


                                                  29
Konka Group Co., Ltd.                                                       Third Quarterly Report 2020


   Financial assets sold
 under repurchase
 agreements
   Customer deposits and
 deposits from other banks
 and financial institutions
   Payables for acting
 trading of securities
   Payables for
 underwriting of securities
   Employee benefits
                                 426,870,498.58           426,870,498.58
 payable

   Taxes and levies payable      607,845,294.99           607,845,294.99

   Other payables               2,374,287,243.20         2,289,729,308.18               -84,557,935.02

      Including: Interest
                                 227,831,108.53           227,831,108.53
 payable

                  Dividends
 payable

   Fees and commissions
 payable

   Reinsurance payables

   Liabilities directly
 associated with assets held
 for sale
   Current portion of
                                 210,066,077.13           210,066,077.13
 non-current liabilities

   Other current liabilities

 Total current liabilities     22,145,831,594.58        21,943,955,424.28              -201,876,170.30

 Non-current liabilities:

   Insurance contract
 reserve

   Long-term borrowings         4,890,315,729.90         4,890,315,729.90

   Bonds payable                4,987,709,643.64         4,987,709,643.64

      Including: Preference
 shares
                  Perpetual
 bonds

   Lease liabilities

   Long-term payables            383,287,104.62           383,287,104.62

   Long-term employee               5,565,646.72             5,565,646.72


                                                   30
Konka Group Co., Ltd.                                                         Third Quarterly Report 2020


 benefits payable

   Provisions                          206,591.51           101,491,327.80               101,284,736.29

   Deferred income                 151,874,258.45           151,874,258.45

   Deferred income tax
                                    95,467,096.05            95,467,096.05
 liabilities
   Other non-current
                                                            117,318,235.28               117,318,235.28
 liabilities

 Total non-current liabilities   10,514,426,070.89        10,733,029,042.46              218,602,971.57

 Total liabilities               32,660,257,665.47        32,676,984,466.74               16,726,801.27

 Owners’ equity:

   Share capital                  2,407,945,408.00         2,407,945,408.00

   Other equity instruments
      Including: Preference
 shares
                     Perpetual
 bonds
   Capital reserves                230,368,577.09           230,368,577.09

   Less: Treasury stock

   Other comprehensive
                                    -21,293,103.52           -21,293,103.52
 income

   Specific reserve

   Surplus reserves               1,211,721,109.67         1,211,721,109.67

   General reserve

   Retained earnings              4,239,763,606.89         4,239,763,606.89

 Total equity attributable to
 owners of the Company as         8,068,505,598.13         8,068,505,598.13
 the parent

 Non-controlling interests        1,858,192,188.67         1,858,192,188.67

 Total owners’ equity            9,926,697,786.80         9,926,697,786.80

 Total liabilities and
                                 42,586,955,452.27        42,603,682,253.54               16,726,801.27
 owners’ equity




                                                     31
Konka Group Co., Ltd.                                                                     Third Quarterly Report 2020


Notes to the adjustment
In 2017, the Ministry of Finance issued the revised "Accounting Standards for Business Enterprises
No. 14-Revenue" (referred to as the "New Revenue Standards"). The company will begin
accounting treatment in accordance with the newly revised standards from January 1, 2020.
According to the convergence regulations, the comparable period information will not be adjusted.
The difference between the implementation of the new standards and the current standards on the
first day will be retrospectively adjusted. Profit or other comprehensive income.
                                      Balance sheet of the Company as the parent
                                                                                                             Unit: RMB

              Item               31 December 2019                1 January 2020                 Adjustment

 Current assets:

   Monetary assets                     2,498,077,198.12                2,498,077,198.12

   Held-for-trading
                                         61,494,666.97                    61,494,666.97
 financial assets
   Derivative financial
 assets

   Notes receivable                    2,148,312,821.38                2,148,312,821.38

   Accounts receivable                 9,564,720,940.39                9,580,894,472.00               16,173,531.61

   Receivables financing                 66,002,903.68                    66,002,903.68

   Prepayments                          911,315,168.95                   911,315,168.95

   Other receivables                  10,552,820,915.47               10,552,820,915.47

      Including: Interest
                                           7,431,353.86                    7,431,353.86
 receivable

                     Dividends
                                        518,580,871.02                   518,580,871.02
 receivable

   Inventories                          218,644,308.47                   207,949,690.07               -10,694,618.40

   Contract assets

   Assets held for sale

   Current portion of
 non-current assets
   Other current assets                1,096,689,897.40                1,107,384,515.80               10,694,618.40

 Total current assets                 27,118,078,820.83               27,134,252,352.44               16,173,531.61

 Non-current assets:

   Debt investments

   Other debt investments

   Long-term receivables



                                                          32
Konka Group Co., Ltd.                                                      Third Quarterly Report 2020


   Long-term equity
                               7,712,084,967.88         7,712,084,967.88
 investments

   Investments in other
                                 12,940,214.36            12,940,214.36
 equity instruments

   Other non-current
                                250,230,000.00           250,230,000.00
 financial assets

   Investment property          400,197,374.07           400,197,374.07

   Fixed assets                 444,107,402.57           444,107,402.57

   Construction in progress      40,933,270.51            40,933,270.51

   Productive living assets

   Oil and gas assets

   Right-of-use assets

   Intangible assets             80,470,750.60            80,470,750.60

   Development costs

   Goodwill

   Long-term prepaid
                                 39,047,325.68            39,047,325.68
 expense
   Deferred income tax
                                883,234,085.45           883,234,085.45
 assets

   Other non-current assets

 Total non-current assets      9,863,245,391.12         9,863,245,391.12

 Total assets                 36,981,324,211.95        36,997,497,743.56               16,173,531.61

 Current liabilities:

   Short-term borrowings       5,014,312,913.74         5,014,312,913.74

   Held-for-trading
 financial liabilities
   Derivative financial
 liabilities

   Notes payable               2,610,991,473.69         2,610,991,473.69

   Accounts payable           11,078,648,690.19        11,078,648,690.19

   Advances from
                                318,839,961.84                                        -318,839,961.84
 customers
   Contract liabilities                                  269,891,156.62               269,891,156.62

   Employee benefits
                                125,402,307.95           125,402,307.95
 payable

   Taxes and levies payable        9,305,344.42             9,305,344.42

   Other payables              3,193,392,734.69         3,181,261,535.24               -12,131,199.45



                                                  33
Konka Group Co., Ltd.                                                         Third Quarterly Report 2020


      Including: Interest
                                   223,847,860.57           223,847,860.57
 payable

                     Dividends
 payable
   Liabilities directly
 associated with assets held
 for sale
   Current portion of
                                   130,512,375.00           130,512,375.00
 non-current liabilities
   Other current liabilities

 Total current liabilities       22,481,405,801.52        22,420,325,796.85               -61,080,004.67

 Non-current liabilities:

   Long-term borrowings           3,438,055,729.90         3,438,055,729.90

   Bonds payable                  4,987,709,643.64         4,987,709,643.64

      Including: Preference
 shares
                     Perpetual
 bonds

   Lease liabilities

   Long-term payables               21,855,688.19            21,855,688.19

   Long-term employee
 benefits payable
   Provisions                          206,591.51             28,511,322.57               28,304,731.06

   Deferred income                  59,545,839.30            59,545,839.30

   Deferred income tax
 liabilities
   Other non-current
                                                             48,948,805.22                48,948,805.22
 liabilities

 Total non-current liabilities    8,507,373,492.54         8,584,627,028.82               77,253,536.28

 Total liabilities               30,988,779,294.06        31,004,952,825.67               16,173,531.61

 Owners’ equity:

   Share capital                  2,407,945,408.00         2,407,945,408.00

   Other equity instruments

      Including: Preference
 shares
                     Perpetual
 bonds

   Capital reserves                114,018,066.79           114,018,066.79

   Less: Treasury stock


                                                     34
Konka Group Co., Ltd.                                                          Third Quarterly Report 2020


   Other comprehensive
                                      -2,682,217.31            -2,682,217.31
 income

   Specific reserve

   Surplus reserves                1,227,564,785.19         1,227,564,785.19

   Retained earnings               2,245,698,875.22         2,245,698,875.22

 Total owners’ equity             5,992,544,917.89         5,992,544,917.89

 Total liabilities and
                                  36,981,324,211.95        36,997,497,743.56               16,173,531.61
 owners’ equity

Notes to the adjustment
In 2017, the Ministry of Finance issued the revised "Accounting Standards for Business Enterprises
No. 14-Revenue" (referred to as the "New Revenue Standards"). The company will begin
accounting treatment in accordance with the newly revised standards from January 1, 2020.
According to the convergence regulations, the comparable period information will not be adjusted.
The difference between the implementation of the new standards and the current standards on the
first day will be retrospectively adjusted. Profit or other comprehensive income.
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First
Execution in 2020 of the New Accounting Standards Governing Revenue and Leases
√ Applicable □ Not applicable
In 2017, the Ministry of Finance issued the revised "Accounting Standards for Business Enterprises
No. 14-Revenue" (referred to as the "New Revenue Standards"). The company will begin
accounting treatment in accordance with the newly revised standards from January 1, 2020.
According to the convergence regulations, the comparable period information will not be adjusted.
The difference between the implementation of the new standards and the current standards on the
first day will be retrospectively adjusted. Profit or other comprehensive income.
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent
auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.



                                                                               The Board of Directors
                                                                               Konka Group Co., Ltd
                                                                                    30 October 2020




                                                      35