Konka Group Co., Ltd. First Quarterly Report 2022
Stock Code: 000016, 200016 Stock Name: Konka Group-A, Konka Group-B Announcement No. 2022-37
Bond Code: 114489, 114524 Bond Name: 19 Konka 04, 19 Konka 06
114894, 133003 21 Konka 01, 21 Konka 02
133040 21 Konka 03
KONKA GROUP CO., LTD.
FIRST QUARTERLY REPORT 2022
Konka Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the
Company’s Board of Directors hereby guarantee that the contents of this Report are true, accurate and
complete and free of any misrepresentations, misleading statements or material omissions.
Important Notes:
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of the Company hereby guarantee that the contents of this Report
are true, accurate and complete and free of any misrepresentations, misleading statements or material
omissions, and collectively and individually accept legal responsibility for such contents.
2. The Company’s legal representative, Chief Financial Officer (CFO), and head of the financial
department (equivalent to financial manager) hereby guarantee that the financial statements carried in
this Report are factual, accurate and complete.
3. Indicate by tick mark whether the financial statements in this Report have been audited by an
independent auditor.
□Yes √ No
I Key Financial Information
(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2022 Q1 2021 YoY change (%)
Operating revenue (RMB) 8,320,135,785.93 9,822,169,119.30 -15.29%
Net profit attributable to the listed company’s
103,900,130.02 72,822,573.66 42.68%
shareholders (RMB)
Net profit attributable to the listed company’s
shareholders before exceptional gains and -418,548,047.01 -389,266,066.84 -7.52%
losses (RMB)
Net cash generated from/used in operating -630,928,798.94 -529,240,793.59 -19.21%
activities (RMB)
1
Konka Group Co., Ltd. First Quarterly Report 2022
Basic earnings per share (RMB/share) 0.0431 0.0302 42.72%
Diluted earnings per share (RMB/share) 0.0431 0.0302 42.72%
Weighted average return on equity (%) 1.13% 0.86% 0.27%
31 March 2022 31 December 2021 Change (%)
Total assets (RMB) 40,541,409,206.02 39,874,520,771.26 1.67%
Equity attributable to the listed company’s
9,333,407,553.35 9,095,278,436.41 2.62%
shareholders (RMB)
(II) Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2022 Note
Gain/Loss arising from disposal of non-current assets (inclusive of impairment allowance
306,961,114.32
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 government’s unified 200,108,076.74
standards
Gain/Loss on changes in fair value arising from holding of trading financial assets and liabilities
and investment income from disposal of trading financial assets, financial liabilities and
17,220,591.79
available-for-sale financial assets other than effective hedge business related to the Company’s
normal operating businesses
Gain/loss on entrustment loans 25,443,441.59
Other non-operating income and expense other than the above 8,525,457.65
Less: Income tax effects 28,778,356.57
Non-controlling interests effects (after tax) 7,032,148.49
Total 522,448,177.03 --
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item 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
Government grants continuously given in the Company’s ordinary
Tax rebates on software 1,087,469.55 course of business at fixed quotas or amounts as per the
government’s policies and standards
(III) Changes in Key Financial Statement Line Items and Explanation
√ Applicable □ Not applicable
Unit: RMB
Change
Item 31 March 2022 1 January 2022 Explanation of why
(%)
Increased prepayments to suppliers and partners in the
Prepayments 195,542,271.36 410,747,084.80 -52.39%
Reporting Period
Current portion of
5,089,586,269. Repayment of bonds payable upon maturity in the Reporting
non-current 3,273,680,267.45 -35.68%
32 Period
liabilities
2
Konka Group Co., Ltd. First Quarterly Report 2022
Long-term 3,529,140,539.
5,703,764,508.16 61.62% New borrowings in the Reporting Period
borrowings 09
Change
Item Q1 2022 Q1 2021 Explanation of why
(%)
Gains on disposal of equity investments in the Reporting
Return on investment 356,591,250.76 143,491,581.78 148.51%
Period
Net cash generated Decreased payments for acquisition and construction of fixed
-1,801,820,739.
from/used in -587,891,465.97 67.37% assets, intangible assets and other long-term assets in the
71
investing activities Reporting Period
Net cash generated
2,716,695,159. Repayment of interest-bearing liabilities in the Reporting
from/used in 796,443,470.45 -70.68%
59 Period
financing activities
II Shareholder Information
(I) 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 88,954 0
voting rights (if any)
Top 10 shareholders
Restricted Shares in pledge,
Nature of Shareholding Total shares marked or frozen
Name of shareholder shares
shareholder percentage held
held Status Shares
OVERSEAS CHINESE TOWN State-owned legal
21.75% 523,746,932 0
HOLDINGS COMPANY person
CITIC SECURITIES BROKERAGE Foreign legal
7.48% 180,001,110 0
(HONG KONG) CO., LTD. person
Domestic natural
WANG JINGFENG 4.63% 111,381,100 0
person
GUOYUAN SECURITIES Foreign legal
2.46% 59,300,325 0
BROKER (HK) CO., LTD. person
Foreign legal
HOLY TIME GROUP LIMITED 2.38% 57,289,100 0
person
Foreign legal
GAOLING FUND,L.P. 2.19% 52,801,250 0
person
Foreign natural
NAM NGAI 0.94% 22,567,540 0
person
CHINA MERCHANTS State-owned legal
0.80% 19,314,220 0
SECURITIES (HK) LIMITED person
BOCOM INTERNATIONAL Foreign legal
0.78% 18,896,037 0
SECURITIES LIMITED person
Domestic natural
LI HANFA 0.73% 17,680,000 0
person
Top 10 unrestricted shareholders
Unrestricted Shares by class
Name of shareholder ordinary
shares held Class Shares
OVERSEAS CHINESE TOWN HOLDINGS COMPANY 523,746,932 RMB-denominated ordinary share 523,746,932
CITIC SECURITIES BROKERAGE (HONG KONG)
180,001,110 Domestically listed foreign share 180,001,110
CO., LTD.
WANG JINGFENG 111,381,100 RMB-denominated ordinary share 111,381,100
GUOYUAN SECURITIES BROKER (HK) CO., LTD. 59,300,325 Domestically listed foreign share 59,300,325
HOLY TIME GROUP LIMITED 57,289,100 Domestically listed foreign share 57,289,100
3
Konka Group Co., Ltd. First Quarterly Report 2022
GAOLING FUND,L.P. 52,801,250 Domestically listed foreign share 52,801,250
NAM NGAI 22,567,540 Domestically listed foreign share 22,567,540
CHINA MERCHANTS SECURITIES (HK) LIMITED 19,314,220 Domestically listed foreign share 19,314,220
BOCOM INTERNATIONAL SECURITIES LIMITED 18,896,037 Domestically listed foreign share 18,896,037
LI HANFA 17,680,000 RMB-denominated ordinary share 17,680,000
Happy Bloom Investment Limited, a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for
short), holds 180,001,110 and 18,360,000 ordinary shares in the Company respectively
Related or acting-in-concert parties
through CITIC Securities Brokerage (Hong Kong) Co., Ltd. and China Merchants
among shareholders above
Securities (HK) Limited. Happy Bloom Investment Limited and Overseas Chinese Town
Holdings Company 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.
Wang Jingfeng holds 111,381,100 A-shares in the Company through his securities account
Top 10 shareholders involved in for customer credit trading guarantee in Guotai Junan Securities Co., Ltd.
securities margin trading (if any) Li Hanfa holds 17,680,000 A-shares in the Company through his securities account for
customer credit trading guarantee in Western Securities Co., Ltd.
(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events
√ Applicable □ Not applicable
(I) Offering of corporate bonds: The public offering of corporate bonds of RMB2.7 billion has been
approved by the general meeting of the Company and is progressing as scheduled.
(II) Acquisition of assets through share offering and cash payment and raising the matching funds &
the relevant related-party transaction: On 10 September 2021, the Proposal on Acquisition of Assets
through Share Offering and Cash Payment and Raising the Matching Funds & the Relevant
Related-Party Transaction and other relevant proposals were approved at the 46 th Meeting of the 9th
Board of Directors of the Company. As such, the Company intended to purchase the 100% equity
interests in Ganzhou MingGao Technology Co., Ltd. (Ganzhou MingGao) from 11 Ganzhou
MingGao shareholders including Shenzhen MingGao Investment Holding Co., Ltd. by way of share
offering, acquire the 100% equity interests in Jiangsu Highstar Battery Manufacturing Co., Ltd.
(Highstar) from 33 Highstar shareholders including Jiangsu Highstar Group Co., Ltd. by way of
share offering and cash payment, and raise the matching funds by share offering to the Company’s
controlling shareholder Overseas Chinese Town Holdings Company (hereinafter, the “Transaction”).
Since the disclosure of the pre-plan of the Transaction, the Company and all stakeholders moved on
with the Transaction in an orderly manner. However, since the Company and shareholders of
Highstar failed to agree on certain key terms of the Transaction, the Company has terminated the
Transaction on 4 March 2022 upon careful deliberation to protect the interests of shareholders,
particularly minority shareholders, and the Company.
4
Konka Group Co., Ltd. First Quarterly Report 2022
IV Quarterly Financial Statements
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd.
31 March 2022
Unit: RMB
Item 31 March 2022 1 January 2022
Current assets:
Monetary assets 6,157,395,079.50 6,489,553,211.24
Settlement reserve
Loans to other banks and financial institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 1,320,501,610.03 1,777,477,481.28
Accounts receivable 3,241,709,849.93 3,397,729,481.07
Receivables financing 15,113,852.84 71,490,688.54
Prepayments 758,545,764.87 631,400,953.86
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,805,914,972.83 1,837,459,705.64
Including: Interest receivable 3,014,902.33 2,573,082.79
Dividends receivable
Financial assets purchased under resale agreements
Inventories 4,741,565,640.03 4,068,537,809.18
Contract assets
Assets held for sale
Current portion of non-current assets 22,071,253.94 28,105,523.78
Other current assets 2,332,697,975.18 2,299,963,391.24
Total current assets 20,395,515,999.15 20,601,718,245.83
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables 19,690,400.00 18,495,499.14
Long-term equity investments 6,335,253,874.25 5,902,588,939.51
Investments in other equity instruments 23,841,337.16 23,841,337.16
Other non-current financial assets 2,414,745,771.10 2,293,361,603.68
Investment property 771,874,837.11 776,525,061.54
Fixed assets 3,990,275,572.80 4,010,295,277.14
Construction in progress 1,605,481,433.54 1,490,777,831.39
Productive living assets
Oil and gas assets
Right-of-use assets 72,937,133.93 71,210,415.37
Intangible assets 973,054,104.18 975,295,916.08
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Konka Group Co., Ltd. First Quarterly Report 2022
Development costs 20,087,670.13 16,870,310.70
Goodwill 22,196,735.11 22,196,735.11
Long-term prepaid expense 296,710,595.29 297,497,383.39
Deferred income tax assets 814,670,464.43 725,315,725.10
Other non-current assets 2,785,073,277.84 2,648,530,490.12
Total non-current assets 20,145,893,206.87 19,272,802,525.43
Total assets 40,541,409,206.02 39,874,520,771.26
Current liabilities:
Short-term borrowings 10,666,627,111.57 9,920,675,121.08
Borrowings from the central bank
Loans from other banks and financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,158,494,285.51 1,116,336,958.91
Accounts payable 3,117,738,358.62 3,784,315,091.41
Advances from customers
Contract liabilities 1,043,342,365.22 652,910,408.02
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 payable 195,542,271.36 410,747,084.80
Taxes and levies payable 276,695,117.14 295,825,170.41
Other payables 1,600,376,400.80 1,788,177,748.59
Including: Interest payable 187,470,969.52 174,383,177.08
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 3,273,680,267.45 5,089,586,269.32
Other current liabilities 46,139,077.00 109,742,188.24
Total current liabilities 21,378,635,254.67 23,168,316,040.78
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 5,703,764,508.16 3,529,140,539.09
Bonds payable 2,294,661,949.61 2,293,698,899.30
Including: Preference shares
Perpetual bonds
Lease liabilities 55,711,527.62 42,532,869.63
Long-term payables 139,331,991.65 140,687,570.78
Long-term employee benefits payable 5,084,980.57 5,111,296.75
Provisions 104,800,684.83 106,276,535.85
Deferred income 226,078,524.01 206,302,424.92
Deferred income tax liabilities 80,466,145.80 76,894,581.97
Other non-current liabilities 115,695,135.37 104,610,663.76
Total non-current liabilities 8,725,595,447.62 6,505,255,382.05
6
Konka Group Co., Ltd. First Quarterly Report 2022
Total liabilities 30,104,230,702.29 29,673,571,422.83
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 369,686,723.19 234,389,963.10
Less: Treasury stock
Other comprehensive income -21,403,861.04 -20,336,087.87
Specific reserve
Surplus reserves 1,244,180,364.24 1,244,180,364.24
General reserve
Retained earnings 5,332,998,918.96 5,229,098,788.94
Total equity attributable to owners of the Company as the parent 9,333,407,553.35 9,095,278,436.41
Non-controlling interests 1,103,770,950.38 1,105,670,912.02
Total owners’ equity 10,437,178,503.73 10,200,949,348.43
Total liabilities and owners’ equity 40,541,409,206.02 39,874,520,771.26
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
2. Consolidated Income Statement
Unit: RMB
Item Q1 2022 Q1 2021
1. Revenues 8,320,135,785.93 9,822,169,119.30
Including: Operating revenue 8,320,135,785.93 9,822,169,119.30
Interest income
Insurance premium income
Fee and commission income
2. Costs and expenses 8,941,642,023.63 10,328,392,295.03
Including: Cost of sales 8,116,619,145.05 9,414,483,468.99
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 24,211,357.37 19,689,328.47
Selling expense 285,983,402.43 384,406,831.83
Administrative expense 168,812,302.22 190,572,518.95
R&D expense 119,366,703.91 119,087,736.76
Finance costs 226,649,112.65 200,152,410.03
Including: Interest expense 243,819,799.49 241,076,377.51
Interest income 52,821,276.29 38,353,963.17
Add: Other income 201,195,546.29 423,439,468.60
Return on investment (“-” for loss) 356,591,250.76 143,491,581.78
Including: Share of profit or loss of joint ventures and associates 39,261,474.65 -562,268.87
Income from the derecognition of financial assets at amortized
7
Konka Group Co., Ltd. First Quarterly Report 2022
cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 3,691,020.84
Credit impairment loss (“-” for loss) 2,597,264.26 1,841,004.17
Asset impairment loss (“-” for loss) -1,299,627.80 340,422.57
Asset disposal income (“-” for loss) 6,760,995.88 -150,371.12
3. Operating profit (“-” for loss) -55,660,808.31 66,429,951.11
Add: Non-operating income 9,556,431.75 3,641,173.82
Less: Non-operating expense 940,039.98 659,880.52
4. Gross profit (“-” for loss) -47,044,416.54 69,411,244.41
Less: Income tax expense -78,749,622.22 50,676,074.79
5. Net profit (“-” for net loss) 31,705,205.68 18,735,169.62
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 31,705,205.68 18,735,169.62
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 the parent 103,900,130.02 72,822,573.66
5.2.1 Net profit attributable to non-controlling interests -72,194,924.34 -54,087,404.04
6. Other comprehensive income, net of tax -1,524,466.40 601,064.90
Attributable to owners of the Company as the parent -1,067,773.17 292,643.72
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 -1,067,773.17 292,643.72
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 foreign
-1,067,773.17 292,643.72
currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -456,693.23 308,421.18
7. Total comprehensive income 30,180,739.28 19,336,234.52
Attributable to owners of the Company as the parent 102,832,356.85 73,115,217.38
Attributable to non-controlling interests -72,651,617.57 -53,778,982.86
8. Earnings per share
8.1 Basic earnings per share 0.0431 0.0302
8.2 Diluted earnings per share 0.0431 0.0302
8
Konka Group Co., Ltd. First Quarterly Report 2022
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua
3. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2022 Q1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 8,562,218,536.27 9,512,332,772.71
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
Net proceeds from acting trading of securities
Tax and levy rebates 74,729,863.58 56,409,474.20
Cash generated from other operating activities 350,880,406.46 657,621,963.41
Subtotal of cash generated from operating activities 8,987,828,806.31 10,226,364,210.32
Payments for commodities and services 8,525,783,311.94 9,476,296,648.41
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 608,845,622.58 625,328,886.69
Taxes and levies paid 87,268,734.60 185,945,308.90
Cash used in other operating activities 396,859,936.13 468,034,159.91
Subtotal of cash used in operating activities 9,618,757,605.25 10,755,605,003.91
Net cash generated from/used in operating activities -630,928,798.94 -529,240,793.59
2. Cash flows from investing activities:
Proceeds from disinvestment 43,513,336.72 45,012,770.66
Return on investment 19,721,203.55 31,075,186.16
Net proceeds from the disposal of fixed assets, intangible assets 723,375.00
159,251,958.00
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business 25,434,651.84
34,089,192.68
units
Cash generated from other investing activities 607,115,559.96 101,331,124.10
Subtotal of cash generated from investing activities 696,508,127.07 370,760,231.60
Payments for the acquisition of fixed assets, intangible assets and 868,492,619.15
1,803,853,686.63
other long-lived assets
Payments for investments 178,342,076.16 188,127,428.68
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
9
Konka Group Co., Ltd. First Quarterly Report 2022
Cash used in other investing activities 237,564,897.73 180,599,856.00
Subtotal of cash used in investing activities 1,284,399,593.04 2,172,580,971.31
Net cash generated from/used in investing activities -587,891,465.97 -1,801,820,739.71
3. Cash flows from financing activities:
Capital contributions received 35,012,000.00 44,368,539.07
Including: Capital contributions by non-controlling interests to 35,012,000.00
44,368,539.07
subsidiaries
Borrowings received 6,063,777,376.75 7,240,208,717.59
Cash generated from other financing activities 42,697,575.48 296,375,956.73
Subtotal of cash generated from financing activities 6,141,486,952.23 7,580,953,213.39
Repayment of borrowings 4,923,815,316.07 4,466,489,496.89
Interest and dividends paid 227,296,185.99 226,688,210.14
Including: Dividends paid by subsidiaries to non-controlling
3,087,000.00
interests
Cash used in other financing activities 193,931,979.72 171,080,346.77
Subtotal of cash used in financing activities 5,345,043,481.78 4,864,258,053.80
Net cash generated from/used in financing activities 796,443,470.45 2,716,695,159.59
4. Effect of foreign exchange rates changes on cash and cash 1,805,449.90
3,140,025.95
equivalents
5. Net increase in cash and cash equivalents -420,571,344.56 388,773,652.24
Add: Cash and cash equivalents, beginning of the period 5,968,347,219.03 4,298,056,113.24
6. Cash and cash equivalents, end of the period 5,547,775,874.47 4,686,829,765.48
(II) 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
27 April 2022
10
