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
