Konka Group Co., Ltd.
FINANCIAL REPORT
For the Six Months Ended 30 June 2023
（Un-audited）
Contents
Auditor’s Report
Balance Shhet
Income Statement
Cash Flow Statement
Statement of Changes in Owners' Equity
Notes to Accounting Statements
Legal representative: Zhou Bin
Head of the accounting work:Li Chunlei
Head of the accounting department: Ping Heng
English Translation for Reference Only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
1
.
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes √ No
The interim financial statements of the Company have not been audited by an independent auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co., Ltd. 30 June 2023 Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 6,908,338,806.16 5,988,095,490.71
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 743,307,489.50
Derivative financial assets
Notes receivable 593,966,294.88 1,059,737,243.54
Accounts receivable 2,087,994,555.53 2,036,734,836.22
Accounts receivable financing 344,155,903.39 237,187,228.44
Prepayments 516,386,493.09 389,947,652.39
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1,415,702,711.35 1,442,124,845.58
Including: Interest receivable 5,279,505.89 3,878,580.64
Dividends receivable 272,999.43
Financial assets purchased under resale agreements
Inventories 4,658,743,334.04 4,409,767,756.22
Contract assets 432,779.46
Assets held for sale
Current portion of non-current assets 3,630,000.00 14,630,000.00
Other current assets 2,418,192,160.84 2,038,841,225.83
Total current assets 19,690,850,528.24 17,617,066,278.93
Non-current assets:
Loans and advances to customers
2
.
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 800,400.00 800,400.00
Long-term equity investments 5,888,122,429.28 6,351,232,955.58
Investments in other equity instruments 23,841,337.16 23,841,337.16
Other non-current financial assets 2,113,570,574.02 2,639,662,273.32
Investment property 1,412,201,694.76 802,407,844.60
Fixed assets 4,021,128,223.39 4,114,029,693.38
Construction in progress 1,496,059,340.20 1,990,361,377.07
Productive living assets
Oil and gas assets
Right-of-use assets 33,487,798.25 50,019,838.68
Intangible assets 1,073,118,003.41 1,116,739,707.27
Development costs
Goodwill 22,196,735.11 22,196,735.11
Long-term prepaid expense 499,711,935.37 387,309,503.07
Deferred income tax assets 1,356,529,756.06 1,201,661,841.23
Other non-current assets 1,293,801,066.80 1,710,245,378.26
Total non-current assets 19,234,569,293.81 20,410,508,884.73
Total assets 38,925,419,822.05 38,027,575,163.66
Current liabilities:
Short-term borrowings 6,779,845,746.13 7,579,559,304.97
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1,156,546,919.70 1,054,573,822.04
Accounts payable 2,926,985,886.32 2,659,946,562.93
Advances from customers 825.69
Contract liabilities 698,842,722.45 601,044,358.35
Financial assets sold under repurchase agreements
Customer deposits and interbank deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 182,043,941.42 348,608,204.05
3
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Taxes payable 189,302,632.91 291,102,679.36
Other payables 1,728,637,840.76 1,895,711,373.34
Including: Interest payable 40,524.22 29,590,464.00
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for
sale
Current portion of non-current liabilities 5,320,279,660.98 409,220,030.69
Other current liabilities 69,644,865.51 68,449,783.71
Total current liabilities 19,052,130,216.18 14,908,216,945.13
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7,173,408,500.74 8,906,931,402.89
Bonds payable 3,295,556,876.26 4,792,392,044.13
Including: Preferred shares
Perpetual bonds
Lease liabilities 31,184,490.59 36,586,639.16
Long-term payables 6,873,122.51 7,964,127.18
Long-term employee benefits payable 4,794,271.77 4,894,209.73
Provisions 203,725,006.73 159,395,579.55
Deferred income 362,363,980.58 334,844,966.31
Deferred income tax liabilities 209,948,467.19 99,030,646.40
Other non-current liabilities 381,807,253.24 314,233,260.08
Total non-current liabilities 11,669,661,969.61 14,656,272,875.43
Total liabilities 30,721,792,185.79 29,564,489,820.56
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 438,115,032.07 365,247,361.05
Less: Treasury stock
Other comprehensive income -14,260,344.24 -14,265,181.63
Specific reserve
4
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Surplus reserves 1,244,180,364.24 1,244,180,364.24
General reserve
Retained earnings 3,446,187,777.61 3,638,868,004.50
Total equity attributable to owners of the Company as
7,522,168,237.68 7,641,975,956.16
the parent
Non-controlling interests 681,459,398.58 821,109,386.94
Total owners’ equity 8,203,627,636.26 8,463,085,343.10
Total liabilities and owners’ equity 38,925,419,822.05 38,027,575,163.66
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Ping Heng
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 4,681,364,336.59 3,987,295,740.42
Held-for-trading financial assets 743,307,489.50
Derivative financial assets
Notes receivable 137,750,227.16 353,764,106.66
Accounts receivable 5,226,685,955.04 4,473,878,994.50
Accounts receivable financing
Prepayments 3,812,656,118.80 2,105,477,988.44
Other receivables 9,603,382,043.11 10,342,326,355.05
Including: Interest receivable 5,279,505.89 3,878,580.64
Dividends receivable 397,213,312.02 393,563,347.61
Inventories 412,432,630.23 173,658,748.80
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1,901,808,323.47 1,581,440,821.79
Total current assets 26,519,387,123.90 23,017,842,755.66
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 8,680,774,584.31 9,100,689,137.42
5
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Investments in other equity instruments 17,940,215.36 17,940,215.36
Other non-current financial assets 396,353,137.96 396,353,137.96
Investment property 919,329,277.65 439,835,051.61
Fixed assets 414,004,752.58 418,021,638.28
Construction in progress 19,589,149.08 481,659,536.66
Productive living assets
Oil and gas assets
Right-of-use assets 1,341,125.40
Intangible assets 43,852,430.31 65,620,126.31
Development costs
Goodwill
Long-term prepaid expense 31,771,125.50 36,665,581.09
Deferred income tax assets 1,165,446,351.89 1,127,531,647.49
Other non-current assets 1,346,901.65 458,931.60
Total non-current assets 11,690,407,926.29 12,086,116,129.18
Total assets 38,209,795,050.19 35,103,958,884.84
Current liabilities:
Short-term borrowings 2,239,120,555.52 2,217,049,472.22
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 245,691,757.67 890,526,510.04
Accounts payable 6,684,025,548.31 6,918,579,963.57
Advances from customers
Contract liabilities 4,402,224,447.61 2,445,363,632.98
Employee benefits payable 30,355,802.08 90,137,022.47
Taxes payable 6,531,359.88 4,095,684.11
Other payables 4,064,658,632.17 3,941,891,644.62
Including: Interest payable 29,271,307.22
Dividends payable
Liabilities directly associated with assets held for
sale
Current portion of non-current liabilities 5,177,362,257.45 151,933,839.55
Other current liabilities 13,581,709.44 7,129,729.38
Total current liabilities 22,863,552,070.13 16,666,707,498.94
Non-current liabilities:
6
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Long-term borrowings 6,383,204,132.03 8,261,287,052.44
Bonds payable 3,295,556,876.26 4,792,392,044.13
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 83,683,992.86 83,666,032.25
Deferred income 41,982,311.04 43,377,324.62
Deferred income tax liabilities 102,663,652.38
Other non-current liabilities 47,145,817.65 42,948,698.55
Total non-current liabilities 9,954,236,782.22 13,223,671,151.99
Total liabilities 32,817,788,852.35 29,890,378,650.93
Owners’ equity:
Share capital 2,407,945,408.00 2,407,945,408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 313,912,061.57 241,044,390.55
Less: Treasury stock
Other comprehensive income -1,500,000.00 -1,500,000.00
Specific reserve
Surplus reserves 1,260,024,039.76 1,260,024,039.76
Retained earnings 1,411,624,688.51 1,306,066,395.60
Total owners’ equity 5,392,006,197.84 5,213,580,233.91
Total liabilities and owners’ equity 38,209,795,050.19 35,103,958,884.84
3. Consolidated Income Statement
Unit: RMB
Item H1 2023 H1 2022
1. Revenue 10,472,061,171.94 16,895,470,276.81
Including: Operating revenue 10,472,061,171.94 16,895,470,276.81
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 11,506,953,501.55 17,954,723,815.95
7
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Including: Cost of sales 10,079,343,784.11 16,482,440,621.84
Interest expense
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 42,718,966.53 53,284,971.18
Selling expense 558,536,665.53 560,225,684.28
Administrative expense 390,244,567.77 354,308,684.51
R&D expense 237,033,893.11 237,348,526.56
Finance costs 199,075,624.50 267,115,327.58
Including: Interest expense 432,772,700.64 465,576,348.06
Interest income 123,908,981.38 109,353,054.39
Add: Other income 137,917,215.41 343,737,322.91
Return on investment (“-” for loss) 826,829,010.88 737,803,536.05
Including: Share of profit or loss of joint ventures and
-30,242,661.05 59,402,481.72
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) -132,580,077.43 -638,799.36
Credit impairment loss (“-” for loss) -140,192,679.36 -78,608,313.56
Asset impairment loss (“-” for loss) -15,283,496.76 -13,309,988.75
Asset disposal income (“-” for loss) 64,713.62 12,782,328.52
3. Operating profit (“-” for loss) -358,137,643.25 -57,487,453.33
Add: Non-operating income 17,325,617.18 30,492,741.65
Less: Non-operating expense 4,326,608.02 3,860,945.80
4. Profit before tax (“-” for loss) -345,138,634.09 -30,855,657.48
Less: Income tax expense -16,710,667.58 -89,346,442.11
5. Net profit (“-” for net loss) -328,427,966.51 58,490,784.63
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” -328,427,966.51 58,490,784.63
8
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for net 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
-193,240,232.33 173,266,442.52
as the parent
5.2.2 Net profit attributable to non-controlling
-135,187,734.18 -114,775,657.89
interests
6. Other comprehensive income, net of tax -2,932,583.82 4,109,281.36
Attributable to owners of the Company as the parent 4,837.39 3,289,330.41
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 4,837.39 3,289,330.41
6.2.1 Other comprehensive income that will be
-38,929.34
reclassified to profit or loss under the equity method
6.2.2 Changes in the fair value of investments in other
debt obligations
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in
other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of
4,837.39 3,328,259.75
foreign currency-denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -2,937,421.21 819,950.95
7. Total comprehensive income -331,360,550.33 62,600,065.99
Attributable to owners of the Company as the parent -193,235,394.94 176,555,772.93
Attributable to non-controlling interests -138,125,155.39 -113,955,706.94
9
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8. Earnings per share
8.1 Basic earnings per share -0.0803 0.0720
8.2 Diluted earnings per share -0.0803 0.0720
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Ping Heng
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Operating revenue 671,342,472.97 937,174,806.46
Less: Cost of sales 682,543,280.18 955,576,781.51
Taxes and surcharges 2,825,863.63 4,788,176.20
Selling expense 120,609,233.66 126,864,858.90
Administrative expense 136,536,029.86 112,153,504.59
R&D expense 15,002,427.03 51,468,275.26
Finance costs 158,153,694.90 162,133,403.85
Including: Interest expense 415,373,817.97 431,671,720.01
Interest income 181,172,038.86 175,006,649.97
Add: Other income 45,777,006.94 16,852,496.81
Return on investment (“-” for loss) 749,413,182.91 231,113,070.86
Including: Share of profit or loss of joint ventures and
-17,573,675.23 76,488,083.68
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) -145,356,925.98
Credit impairment loss (“-” for loss) -22,515,556.31 -23,046,305.82
Asset impairment loss (“-” for loss) -5,669,387.21 -4,024,458.06
Asset disposal income (“-” for loss) 18,634.76 6,069,332.66
2. Operating profit (“-” for loss) 177,338,898.82 -248,846,057.40
Add: Non-operating income 1,209,609.70 13,060,831.55
Less: Non-operating expense 2,143,784.68 254,158.77
3. Profit before tax (“-” for loss) 176,404,723.84 -236,039,384.62
Less: Income tax expense 64,758,360.48 -80,204,459.87
4. Net profit (“-” for net loss) 111,646,363.36 -155,834,924.75
4.1 Net profit from continuing operations (“-” for 111,646,363.36 -155,834,924.75
10
.
net loss)
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
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 investments in other
debt obligations
5.2.3 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Credit impairment allowance for investments in
other debt obligations
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 111,646,363.36 -155,834,924.75
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
10,257,069,599.77 16,657,583,444.03
services
11
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Net increase in customer deposits and interbank
deposits
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, handling charges and commissions
received
Net increase in interbank loans obtained
Net increase in proceeds from repurchase
transactions
Net proceeds from acting trading of securities
Tax rebates 114,042,516.44 280,376,794.53
Cash generated from other operating activities 434,232,897.74 753,959,635.59
Subtotal of cash generated from operating activities 10,805,345,013.95 17,691,919,874.15
Payments for commodities and services 9,023,089,761.99 15,956,086,181.59
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in
interbank loans granted
Payments for claims on original insurance contracts
Net increase in interbank loans granted
Interest, handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 961,152,003.48 1,001,094,352.68
Taxes paid 267,360,124.35 272,856,476.27
Cash used in other operating activities 755,293,229.37 883,142,370.34
Subtotal of cash used in operating activities 11,006,895,119.19 18,113,179,380.88
Net cash generated from/used in operating activities -201,550,105.24 -421,259,506.73
2. Cash flows from investing activities:
Proceeds from disinvestment 889,008,792.86 311,914,738.68
Return on investment 102,906,034.84 66,252,680.29
Net proceeds from the disposal of fixed assets,
5,504,209.67 823,875.00
intangible assets and other long-lived assets
12
.
Net proceeds from the disposal of subsidiaries and
18,818,889.67 297,094,350.04
other business units
Cash generated from other investing activities 429,959,598.68 2,385,626,424.39
Subtotal of cash generated from investing activities 1,446,197,525.72 3,061,712,068.40
Payments for the acquisition of fixed assets,
541,154,096.54 2,368,866,405.13
intangible assets and other long-lived assets
Payments for investments 281,204,526.06
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 471,154,667.83 297,319,897.73
Subtotal of cash used in investing activities 1,012,308,764.37 2,947,390,828.92
Net cash generated from/used in investing activities 433,888,761.35 114,321,239.48
3. Cash flows from financing activities:
Capital contributions received 600,000.05 73,710,000.00
Including: Capital contributions by non-controlling
600,000.05 73,710,000.00
interests to subsidiaries
Borrowings raised 6,347,967,876.40 13,247,484,343.89
Cash generated from other financing activities 270,299,841.72 98,773,506.85
Subtotal of cash generated from financing activities 6,618,867,718.17 13,419,967,850.74
Repayment of borrowings 5,423,409,343.95 12,164,709,671.44
Interest and dividends paid 417,032,889.60 629,096,420.22
Including: Dividends paid by subsidiaries to
735,000.00
non-controlling interests
Cash used in other financing activities 486,741,862.16 413,488,589.33
Subtotal of cash used in financing activities 6,327,184,095.71 13,207,294,680.99
Net cash generated from/used in financing activities 291,683,622.46 212,673,169.75
4. Effect of foreign exchange rates changes on cash
44,134,367.10 29,437,680.94
and cash equivalents
5. Net increase in cash and cash equivalents 568,156,645.67 -64,827,416.56
Add: Cash and cash equivalents, beginning of the
5,461,912,010.90 5,968,347,219.03
period
6. Cash and cash equivalents, end of the period 6,030,068,656.57 5,903,519,802.47
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
13
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1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
1,612,906,405.48 2,354,844,176.86
services
Tax rebates 33,601,449.43 86,941,251.18
Cash generated from other operating activities 125,639,407.49 97,266,687.71
Subtotal of cash generated from operating activities 1,772,147,262.40 2,539,052,115.75
Payments for commodities and services 1,685,690,002.69 2,958,268,595.49
Cash paid to and for employees 163,714,700.87 177,343,007.79
Taxes paid 6,158,152.38 8,874,050.17
Cash used in other operating activities 258,237,321.10 570,856,154.42
Subtotal of cash used in operating activities 2,113,800,177.04 3,715,341,807.87
Net cash generated from/used in operating activities -341,652,914.64 -1,176,289,692.12
2. Cash flows from investing activities:
Proceeds from disinvestment 377,895,533.73 243,681,401.96
Return on investment 45,984,167.78 9,191,193.60
Net proceeds from the disposal of fixed assets,
463,991.29 2,335.00
intangible assets and other long-lived assets
Net proceeds from the disposal of subsidiaries and
other business units
Cash generated from other investing activities 2,247,236,977.19 4,144,985,356.98
Subtotal of cash generated from investing activities 2,671,580,669.99 4,397,860,287.54
Payments for the acquisition of fixed assets,
64,727,368.50 113,204,917.61
intangible assets and other long-lived assets
Payments for investments 77,400,000.00 181,192,000.00
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 1,822,125,825.03 3,667,215,872.05
Subtotal of cash used in investing activities 1,964,253,193.53 3,961,612,789.66
Net cash generated from/used in investing activities 707,327,476.46 436,247,497.88
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 5,060,000,000.00 11,015,317,707.33
Cash generated from other financing activities 4,539,539,207.19 6,900,804,389.29
Subtotal of cash generated from financing activities 9,599,539,207.19 17,916,122,096.62
Repayment of borrowings 3,708,306,940.22 9,787,500,000.00
Interest and dividends paid 439,526,690.78 569,130,713.71
14
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Cash used in other financing activities 5,451,482,339.89 6,871,379,554.34
Subtotal of cash used in financing activities 9,599,315,970.89 17,228,010,268.05
Net cash generated from/used in financing activities 223,236.30 688,111,828.57
4. Effect of foreign exchange rates changes on cash
6,131,671.92 41,903.92
and cash equivalents
5. Net increase in cash and cash equivalents 372,029,470.04 -51,888,461.75
Add: Cash and cash equivalents, beginning of the
3,833,613,544.22 4,682,608,814.76
period
6. Cash and cash equivalents, end of the period 4,205,643,014.26 4,630,720,353.01
15
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7. Consolidated Statements of Changes in Owners’ Equity
H1 2023 Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Item Other equity instruments Non-controlling Total owners’
Less: Other
Capital Specific General Retained
Share capital Treasury comprehensive Surplus reserves Other Subtotal interests equity
Preferred Perpetual
Other reserves reserve reserve earnings
shares bonds stock income
1. Balance as at the
end of the period of 2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,637,291,770.33 7,640,399,721.99 820,973,239.93 8,461,372,961.92
prior year
Add: Adjustment for
change in accounting 1,576,234.17 1,576,234.17 136,147.01 1,712,381.18
policy
Adjustment for
correction of previous
error
Adjustment for
business combination
under common
control
Other adjustments
2. Balance as at the
beginning of the 2,407,945,408.00 365,247,361.05 -14,265,181.63 1,244,180,364.24 3,638,868,004.50 7,641,975,956.16 821,109,386.94 8,463,085,343.10
Reporting Period
3. Increase/ decrease
72,867,671.02 4,837.39 -259,457,706.84
in the period (“-” for -192,680,226.89 -119,807,718.48 -139,649,988.36
16
.
decrease)
3.1 Total
comprehensive 4,837.39 -193,240,232.33 -193,235,394.94 -138,125,155.39 -331,360,550.33
income
3.2 Capital
increased and reduced 72,867,671.02 72,867,671.02 -789,832.97 72,077,838.05
by owners
3.2.1 Ordinary shares
600,000.03 600,000.03
increased by owners
3.2.2 Capital
increased by holders
of other equity
instruments
3.2.3 Share-based
payments included in
owners’ equity
3.2.4 Other 72,867,671.02 72,867,671.02 -1,389,833.00 71,477,838.02
3.3 Profit
-735,000.00 -735,000.00
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
-735,000.00 -735,000.00
Appropriation to
17
.
owners (or
shareholders)
3.3.4 Other
3.4 Transfers
within owners’ equity
3.4.1 Increase in
capital (or share
capital) from capital
reserves
3.4.2 Increase in
capital (or share
capital) from surplus
reserves
3.4.3 Loss offset
by surplus reserves
3.4.4 Changes in
defined benefit
schemes transferred
to retained earnings
3.4.5 Other
comprehensive
income transferred to
retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in
the period
18
.
3.5.2 Used in the
period
3.6 Other 560,005.44 560,005.44 560,005.44
4. Balance as at the
end of the Reporting 2,407,945,408.00 438,115,032.07 -14,260,344.24 1,244,180,364.24 3,446,187,777.61 7,522,168,237.68 681,459,398.58 8,203,627,636.26
Period
H1 2022 Unit: RMB
H1 2022
Equity attributable to owners of the Company as the parent
Item Other equity instruments Non-controlling Total owners’
Less: Other
Capital Specific General Retained
Share capital Treasury comprehensive Surplus reserves Other Subtotal interests equity
Preferred Perpetual
Other reserves reserve reserve earnings
shares bonds stock income
1. Balance as at the
end of the period of 2,407,945,408.00 234,389,963.10 -20,336,087.87 1,244,180,364.24 5,229,098,788.94 9,095,278,436.41 1,105,670,912.02 10,200,949,348.43
prior year
Add: Adjustment for
change in accounting 464,912.01 464,912.01 196,178.92 661,090.93
policy
Adjustment for
correction of
previous error
Adjustment for
business
combination under
common control
Other adjustments
19
.
2. Balance as at the
beginning of the 2,407,945,408.00 234,389,963.10 -20,336,087.87 1,244,180,364.24 5,229,563,700.95 9,095,743,348.42 1,105,867,090.94 10,201,610,439.36
Reporting Period
3. Increase/ decrease
in the period (“-” for 132,442,151.79 3,289,330.41 52,869,172.12 188,600,654.32 -5,241,051.01 183,359,603.31
decrease)
3.1 Total
comprehensive 3,289,330.41 173,266,442.52 176,555,772.93 -113,955,706.94 62,600,065.99
income
3.2 Capital
increased and 132,442,151.79 132,442,151.79 109,449,655.93 241,891,807.72
reduced by owners
3.2.1 Ordinary
shares increased by 73,710,000.00 73,710,000.00
owners
3.2.2 Capital
increased by holders
of other equity
instruments
3.2.3 Share-based
payments included
in owners’ equity
3.2.4 Other 132,442,151.79 132,442,151.79 35,739,655.93 168,181,807.72
3.3 Profit
-120,397,270.40 -120,397,270.40 -735,000.00 -121,132,270.40
distribution
3.3.1
Appropriation to
20
.
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
Appropriation to
-120,397,270.40 -120,397,270.40 -735,000.00 -121,132,270.40
owners (or
shareholders)
3.3.4 Other
3.4 Transfers
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from capital
reserves
3.4.2 Increase
in capital (or share
capital) from surplus
reserves
3.4.3 Loss
offset by surplus
reserves
3.4.4 Changes
in defined benefit
schemes transferred
to retained earnings
21
.
3.4.5 Other
comprehensive
income transferred
to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase
in the period
3.5.2 Used in
the period
3.6 Other
4. Balance as at the
end of the Reporting 2,407,945,408.00 366,832,114.89 -17,046,757.46 1,244,180,364.24 5,282,432,873.07 9,284,344,002.74 1,100,626,039.93 10,384,970,042.67
Period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2023 Unit: RMB
H1 2023
Other equity instruments
Item Capital Less: Treasury Other comprehensive Specific Retained Total owners’
Share capital Preferred Perpetual Surplus reserves Other
Other reserves stock income reserve earnings equity
shares bonds
1. Balance as at the end of the period of prior year 2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,306,066,395.60 5,213,580,233.91
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments -6,088,070.45 -6,088,070.45
2. Balance as at the beginning of the Reporting 2,407,945,408.00 241,044,390.55 -1,500,000.00 1,260,024,039.76 1,299,978,325.15 5,207,492,163.46
22
.
Period
3. Increase/ decrease in the period (“-” for decrease) 72,867,671.02 111,646,363.36 184,514,034.38
3.1 Total comprehensive income 111,646,363.36 111,646,363.36
3.2 Capital increased and reduced by owners 72,867,671.02 72,867,671.02
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other equity
instruments
3.2.3 Share-based payments included in owners’
equity
3.2.4 Other 72,867,671.02 72,867,671.02
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital) from
capital reserves
3.4.2 Increase in capital (or share capital) from
surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income transferred
to retained earnings
3.4.6 Other
23
.
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2,407,945,408.00 313,912,061.57 -1,500,000.00 1,260,024,039.76 1,411,624,688.51 5,392,006,197.84
H1 2022 Unit: RMB
H1 2022
Other equity instruments
Item Capital Less: Treasury Other comprehensive Specific Retained Total owners’
Share capital Preferred Perpetual Surplus reserves Other
Other reserves stock income reserve earnings equity
shares bonds
1. Balance as at the end of the period of prior year 2,407,945,408.00 110,696,992.60 -1,500,000.00 1,260,024,039.76 2,724,187,542.59 6,501,353,982.95
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments 23.10 23.10
2. Balance as at the beginning of the Reporting
2,407,945,408.00 110,696,992.60 -1,500,000.00 1,260,024,039.76 2,724,187,565.69 6,501,354,006.05
Period
3. Increase/ decrease in the period (“-” for decrease) 132,442,151.79 -276,232,195.15 -143,790,043.36
3.1 Total comprehensive income -155,834,924.75 -155,834,924.75
3.2 Capital increased and reduced by owners 132,442,151.79 132,442,151.79
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other equity
instruments
3.2.3 Share-based payments included in owners’
24
.
equity
3.2.4 Other 132,442,151.79 132,442,151.79
3.3 Profit distribution -120,397,270.40 -120,397,270.40
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or shareholders) -120,397,270.40 -120,397,270.40
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital) from
capital reserves
3.4.2 Increase in capital (or share capital) from
surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income transferred
to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2,407,945,408.00 243,139,144.39 -1,500,000.00 1,260,024,039.76 2,447,955,370.54 6,357,563,962.69
25
Notes to the Financial Statements of Konka Group Co., Ltd.
For the Year from 1 January 2023 to 30 June 2023
(All amounts in RMB yuan unless otherwise stated)
I. Company Profile
1. Establishment
Konka Group Co., Ltd. (hereinafter referred to as “Company” or “the Company” and the “Group”
when including subsidiaries), is a joint-stock limited company reorganized from the former
Shenzhen Konka Electronic Co., Ltd. in August 1991 upon approval of the People’s Government of
Shenzhen Municipality, and has its ordinary shares (A-share and B-share) listed on Shenzhen Stock
Exchange with prior consent from the People’s Bank of China Shenzhen Special Economic Zone
Branch. On 29 August 1995, the Company was renamed to “Konka Group Co., Ltd.” (Credibility
code: 914403006188155783) with its main business electronic industry. And now the headquarters
locates in No. 28 of No. 12 of Keji South Rd., Science & Technology Park, Yuehai Street, Nanshan
District, Shenzhen, Guangdong Province.
2. Share capital
After the distribution of bonus shares, allotments, increased share capital and new shares issued
over the years, as of 30 June 2023, the Company has issued a total of 2,407,945,408.00 shares
(denomination of RMB1 per share) with a registered capital of RMB2,407,945,408.00.
3. The nature of the company's business and main operating activities
The Group was mainly engaged in the production and sales of colour TVs, white goods, etc.; as
well as the operation of industry trade business, material technology business, semi-conductor, etc.
4. The financial statements contained herein have been approved for issue by the Board of Directors
of the Company on 25 August 2023.
II. Consolidation scope
The Company has a total of 124 subsidiaries included in the consolidation scope including
Shenzhen Konka Electronics Technology Co., Ltd., Anhui Konka Electronic Co., Ltd. and
Dongguan Konka Electronic Co., Ltd. The consolidation scope of the Company for the Reporting
Period decreased by 3 households including Sichuan Hongxinchen Real Estate Development Co.,
Ltd ., Anhui Konka Zhilian E-Commerce Co., Ltd., etc. due to losing control or cancellation
compared to the same period of last year.
For details, please refer to Note 7 “Changes in the consolidation scope” and Note 8 "Equity in
Other Entities".
A check list of corporate names and their abbreviations mentioned in this Report
No. Corporate name Abbreviation
26
No. Corporate name Abbreviation
1 Shenzhen Konka Electronics Technology Co., Ltd. Electronics Technology
2 Anhui Konka Zhilian E-Commerce Co., Ltd. Anhui Zhilian
3 Nantong Haimen Konka Smart Technology Co., Ltd. Haimen Konka
4 Chengdu Konka Smart Technology Co., Ltd. Chengdu Konka Smart
5 Chengdu Konka Electronic Co., Ltd. Chengdu Konka Electronic
6 Nantong Hongdin Smart Technology Co., Ltd. Nantong Hongdin
Shenzhen Kangcheng Technology Innovation and Development Co.,
7 Shenzhen Kangcheng
Ltd.
8 Xiaojia Technology Co., Ltd. Xiaojia Technology
9 Liaoyang Kangshun Smart Technology Co., Ltd. Liaoyang Kangshun Smart
10 Liaoyang Kangshun Renewable Resources Co., Ltd. Liaoyang Kangshun Renewable
11 Nanjing Konka Electronics Co., Ltd. Nanjing Konka
Chuzhou Konka Precision Intelligent Manufacturing Technology Co.,
12 Chuzhou Konka
Ltd.
13 GuangDong XingDa HongYe Electronic Co., Ltd. XingDa HongYe
14 Shenzhen Konka Circuit Co., Ltd. Konka Circuit
15 Suining Konka Flexible Electronic Technology Co., Ltd. Konka Flexible Electronic
16 Suining Konka Hongye Electronics Co., Ltd. Konka Hongye Electronics
17 Boluo Konka Precision Technology Co., Ltd. Boluo Precision
18 Boluo Konka PCB Co., Ltd. Boluo Konka
19 Anhui Konka Tongchuang Electrical Appliances Co., Ltd. Anhui Tongchuang
20 Jiangsu Konka Smart Electrical Appliances Co., Ltd. Jiangsu Konka Smart
21 Anhui Konka Electrical Appliance Technology Co., Ltd. Anhui Electrical Appliance
22 Henan Frestec Refrigeration Appliance Co., Ltd. Frestec Refrigeration
23 Henan Frestec Electrical Appliances Co., Ltd. Frestec Electrical Appliances
24 Henan Frestec Household Appliances Co., Ltd. Frestec Household Appliances
25 Henan Frestec Smart Home Technology Co., Ltd. Frestec Smart Home
26 Shenzhen Konka Investment Holdings Co., Ltd. Konka Investment
27 Yibin Konka Technology Park Operation Co., Ltd. Yibin Konka Technology Park
28 Shenzhen Konka Capital Equity Investment Management Co., Ltd. Konka Capital
29 Konka Suiyong Investment (Shenzhen) Co., Ltd. Konka Suiyong
30 Shenzhen Konka Shengxing Industrial Co., Ltd. Shengxing Industrial
31 Shenzhen Konka Zhitong Technology Co., Ltd. Zhitong Technology
32 Konka Factoring (Shenzhen) Co., Ltd. Konka Factoring
33 Beijing Konka Electronic Co., Ltd. Beijing Konka Electronic
34 Tianjin Konka Technology Co., Ltd. Tianjin Konka
35 Suining Konka Industrial Park Development Co., Ltd. Suining Konka Industrial Park
Suining Electronic Technological
36 Suining Konka Electronic Technological Innovation Co., Ltd.
Innovation
27
No. Corporate name Abbreviation
37 Shanghai Konka Industrial Co., Ltd. Shanghai Konka
38 Yantai Kangjin Technology Development Co., Ltd. Yantai Kangjin
39 Shenzhen Konka Mobile Interconnection Technology Co., Ltd. Mobile Interconnection
40 Sichuan Konka Smart Terminal Technology Co., Ltd Sichuan Konka
41 Yibin Konka Smart Technology Co., Ltd. Yibin Smart
42 Shenzhen KONSEMI Co., Ltd. Shenzhen KONSEMI
43 Chongqing Konka Technology Development Co., Ltd. Chongqing Konka
44 Kowin Memory Technology (Shenzhen) Co., Limited Kowin Memory (Shenzhen)
45 Kowin Memory Technology (Hong Kong) Co., Limited Kowin Memory (Hong Kong)
46 Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd. Konka Xinyun Semiconductor
47 Konka Industrial and Trade Technology (Shenzhen) Co., Ltd. Industrial and Trade Technology
48 Shenzhen Nianhua Enterprise Management Co., Ltd. Shenzhen Nianhua
49 Konka Huazhong (Hunan) Technology Co., Ltd. Konka Huazhong
50 Shenzhen Wankaida Science and Technology Co., Ltd. Wankaida
Shenzhen Chuangzhi Electrical
51 Shenzhen Konka Chuangzhi Electrical Appliances Co., Ltd.
Appliances
52 Suining Jiarun Property Co., Ltd. Suining Jiarun Property
53 Anhui Konka Electronic Co., Ltd. Anhui Konka
54 Anhui Kangzhi Trade Co., Ltd. Kangzhi Trade
55 Shenzhen Konka Telecommunications Technology Co., Ltd. Telecommunication Technology
56 Konka Mobility Co., Limited Konka Mobility
57 Dongguan Konka Electronic Co., Ltd. Dongguan Konka
58 Suining Konka Smart Technology Co., Ltd. Suining Konka Smart
Chongqing Konka Optoelectronic Technology Research Institute Co., Chongqing Optoelectronic
59
Ltd. Technology Research Institute
60 Yibin Kangrun Environmental Technology Co., Ltd. Yibin Kangrun
61 Yibin Kangrun Medical Waste Centralized Treatment Co., Ltd. Yibin Kangrun Medical
Yibin Kangrun Environmental
62 Yibin Kangrun Environmental Protection Power Generation Co., Ltd.
Protection
63 Ningbo Khr Electric Appliance Co., Ltd. Ningbo Khr Electric Appliance
64 Jiangxi Konka New Material Technology Co., Ltd. Jiangxi Konka
65 Jiangxi High Transparent Substrate Material Technology Co., Ltd. Jiangxi High Transparent Substrate
66 Jiangsu Konka Special Material Technology Co., Ltd. Jiangsu Konka Special Material
67 Jiangxi Xinfeng Microcrystalline Jade Co., Ltd. Xinfeng Microcrystalline
68 Konka Huanjia Environmental Technology Co., Ltd. Konka Huanjia
69 Konka Huanjia (Henan) Environmental Technology Co., Ltd. Konka Huanjia (Henan)
70 Shaanxi Konka Intelligent Appliance Co., Ltd. Shaanxi Konka Intelligent
71 Shenzhen Konka Pengrun Technology & Industry Co., Ltd. Pengrun Technology
72 Jiaxin Technology Co., Ltd. Jiaxin Technology
28
No. Corporate name Abbreviation
73 Konka Ronghe Industrial Technology (Zhejiang) Co., Ltd. Konka Ronghe
74 Chongqing Kangxingrui Environmental Technology Co., Ltd. Chongqing Kangxingrui
Chongqing Kangxingrui
75 Chongqing Kangxingrui Scraped Automobile Recycling Co., Ltd.
Automobile Recycling
76 Shenzhen Konka Unifortune Technology Co., Ltd. Konka Unifortune
77 Jiali International (Hong Kong) Limited Jiali International
78 Sichuan Kangjiatong Technology Co., Ltd. Kangjiatong
79 Kanghong (Yantai) Environmental Technology Co., Ltd. Kanghong (Yantai) Environmental
80 Jiangkang (Shanghai) Technology Co., Ltd. Jiangkang (Shanghai) Technology
81 Shenzhen Konka Intelligent Manufacturing Technology Co., Ltd. Konka Intelligent Manufacturing
82 Hainan Konka Material Technology Co., Ltd. Konka Material
83 Konka Ventures Development (Shenzhen) Co., Ltd. Konka Ventures
84 Yibin Konka Incubator Management Co., Ltd. Yibin Konka Incubator
85 Yantai Konka Healthcare Enterprise Service Co., Ltd. Yantai Konka
Chengdu Anren Konka Cultural and Creative Incubator Management
86 Chengdu Anren
Co., Ltd.
87 Guiyang Konka Enterprise Service Co., Ltd. Konka Enterprise Service
88 Shenzhen Konka Eco-Development Investment Co., Ltd. Konka Eco-Development
89 Konka (Europe) Co., Ltd. Konka Europe
90 Hong Kong Konka Limited Hong Kong Konka
91 Hongdin International Trading Limited Hongdin Trading
92 Konka North America LLC Konka North America
93 Kanghao Technology Co., Ltd. Kanghao Technology
94 Hongdin Invest Development Limited Hongdin Invest
Chain Kingdom Memory
95 Chain Kingdom Memory Technologies Co., Limited
Technologies
Chain Kingdom Memory
96 Chain Kingdom Memory Technologies (Shenzhen) Co., Limited
Technologies (Shenzhen)
97 Hongjet (Hong Kong) Company Limited Hongjet
Chongqing Xinyuan
98 Chongqing Xinyuan Semiconductor Co., Ltd.
Semiconductor
99 Anlu Konka Industrial Operation Service Co., Ltd. Anlu Konka
Shenzhen Kanghong Dongsheng Investment Partnership (Limited
100 Kanghong Dongsheng
Partnership)
Guizhou Konka New Material
101 Guizhou Konka New Material Technology Co., Ltd.
Technology
102 Guizhou Kanggui Energy Co., Ltd. Guizhou Kanggui Energy
103 Guangdong Xinwei Semiconductor Co., Ltd. Guangdong Xinwei
104 Chongqing Kangxingrui Renewable Resources Co., Ltd. Kangxinrun Renewable Resources
Guizhou Kanggui Material
105 Guizhou Kanggui Material Technology Co., Ltd.
Technology
106 Nantong Kanghai Technology Industry Development Co., Ltd. Nantong Kanghai
29
No. Corporate name Abbreviation
107 Chongqing Kangyiyun Business Operation Management Co., Ltd. Chongqing Kangyiyun
108 Jiangxi Konka High-tech Park Operation and Management Co., Ltd. Jiangxi Konka High-tech Park
Shangrao Konka Electronic
109 Shangrao Konka Electronic Technology Innovation Co., Ltd.
Technology Innovation
110 Guizhou Konka New Energy Material Technology Co., Ltd. Guizhou Konka New Energy
111 Zhejiang Konka Electronic Technology Co., Ltd. Zhejiang Konka Electronic
Zhejiang Konka Technology
112 Zhejiang Konka Technology Industry Development Co., Ltd.
Industry
113 Sichuan Hongxinchen Real Estate Development Co., Ltd. Sichuan Hongxinchen
114 Xi'an Konka Intelligent Appliance Co., Ltd. Xi'an Konka Intelligent
115 Xi'an Konka Network Technology Co., Ltd. Xi'an Konka Network
Xi'an Kanghong Technology
116 Xi'an Kanghong Technology Industry Development Co., Ltd.
Industry
Xi'an Konka Intelligent
117 Xi'an Konka Intelligent Technology Development Co., Ltd.
Technology
118 Chongqing Fangbing Real Estate Co., Ltd. Chongqing Fangbing Real Estate
119 Chongqing Konka Low Carbon Technology Co., Ltd. Chongqing Konka Low Carbon
Shenzhen Kanghong Xintong Investment Partnership (Limited
120 Kanghong Xintong
Partnership)
121 Songyang Konka Smart Industry Operation Management Co., Ltd. Songyang Industry Operation
122 Shenzhen Kangyan Technology Co., Ltd. Kangyan Technology
123 Konka Photovoltaic Technology Co., Ltd. Konka Photovoltaic Technology
124 Songyang Konka Intelligent Technology Development Co., Ltd. Songyang Konka Intelligent
125 Konka North China (Tianjin) Technology Co., Ltd. Konka North China
126 Zhongshan Kanghong Electronic Technology Co., Ltd. Zhongshan Kanghong
127 Shenzhen Konka Digital Technology Development Co., Ltd. Digital Technology
III. Basis f or the Preparation of Financial Statements
1. Basic for the preparation
With the going-concern assumption as the basis and based on transactions and other events that
actually occurred, the Group prepared financial statements in accordance with the Accounting
Standards for Business Enterprises issued by the Ministry of Finance and other regulations as well
as the accounting policies and estimations stipulated in the Note IV “Significant Accounting
Policies and Estimations”.
2. Going-concern
The Group has a recent history of profitable operations supported by financial resources and considers it reasonable to
prepare the financial statements on a going concern basis.
30
IV. Important Accounting Policies and Esti mations
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises, which factually and completely present the
Group’s financial positions, business results and cash flows, and other relevant information.
2. Fiscal Period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to the
Gregorian calendar.
3. Operating Cycle
The normal operating cycle refers to the period from the purchase of assets for processing to the realization of cash or
cash equivalents by the Group. An operating cycle for the Group is 12 months, which is also the
classification criterion for the liquidity of its assets and liabilities.
4. Recording Currency
The Group adopted RMB as the bookkeeping base currency.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not under
the Same Control
As the combining party, the assets and liabilities obtained by the Group in a business combination
under the same control shall be measured on the basis of their carrying value in the final controlling
party on the combining date. As for the balance between the carrying value of the net assets
obtained and the carrying value of the consideration paid by it, the capital reserve shall be adjusted.
If the capital reserve is not sufficient to be offset, the retained earnings shall be adjusted.
The identifiable assets, liabilities and contingent liabilities of the acquiree acquired in the business
combination under different control shall be measured at fair value on the acquisition date. The
merger cost is the sum of the fair value of cash or non-cash assets, liabilities issued or assumed,
equity securities issued, etc. paid by the Group on the purchase date to gain control over the
purchased party and all directly related expenses incurred in the business combination (The merge
cost of business combination realized step by step through multiple transactions is the sum of every
single transaction’s cost). The balance that the combined cost greater than the fair value share of the
identifiable net assets of the purchased party obtained in the combination shall be recognized as
goodwill; When the merger cost is less than the fair value share of the identifiable net assets of the
acquiree acquired in the merger, the fair value of all identifiable assets, liabilities and contingent
liabilities acquired in the merger, and non-cash assets of the merger consideration or equity
securities issued, etc. shall be reviewed first. After review, if the merger cost is still less than the fair
31
value share of the identifiable net assets of the acquiree acquired in the merger, the difference shall
be included in the non-operating income of the merger period.
6. Methods for Preparing Consolidated Financial Statements
The scope of consolidation includes all controlled subsidiaries and structural entities.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and
accounting period of the Group during the preparation of the consolidated financial statements,
where the accounting policies and the accounting periods are inconsistent between the Group and
subsidiaries.
All significant internal transactions, current balances and unrealized profits within the scope of
consolidation shall be offset when preparing the consolidated statement. The shares of the
subsidiary's owner's equity that do not belong to the parent Group and the shares of minority
shareholders' equity in current net profit and loss, other comprehensive income and total
comprehensive income shall be respectively listed in the consolidated financial statement
"Minority shareholders' equity, minority shareholders' profit and loss, other comprehensive income
that belongs to minority shareholders and total comprehensive income that belongs to minority
shareholders".
For subsidiaries acquired through merger of enterprises under the same control, their operating
results and cash flows are included in the consolidated financial statements from the beginning of
the current merger period. When preparing the comparative consolidated financial statements, the
relevant items in the financial statements of the previous year shall be adjusted as if the
consolidated reporting entity had existed since the final controlling party began to control it.
The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under the
same control is acquired step by step through multiple transactions, and finally form the business
combination, when preparing the consolidated statement, it shall be deemed as the adjustment is
made in the current state when the final controlling party starts to control. And when compiling the
comparative report, the assets and liabilities of the merged party shall be merged into the
comparative statement of the consolidated financial statements of the consolidated Group without
any earlier than the time when the Group and the merged party are under the control of the ultimate
controlling party, and the combined net increased assets shall be adjusted to the relevant items
under owners' equity in the comparative statements. In order to avoid the re-calculation of the net
assets value of the merged party, the long-term equity investment held by the Group before the
merger, the confirmed relevant profit and loss on the same party with the Group and the merged
party on the date of acquisition of the original equity from the final control date to the merger date,
and changes of other comprehensive income and other net assets shall offset the beginning retained
32
earnings and current profits and losses of the comparative statement period respectively.
For subsidiaries acquired through business combination under the different control, the operating
results and cash flow shall be included in the consolidated financial statements from the date when
the Group obtains the control right. When preparing the consolidated financial statements, the
financial statements of the subsidiaries shall be adjusted on the basis of the fair value of the
identifiable assets, liabilities and contingent liabilities determined on the acquisition date.
The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired, if the equity of the invested organization
not under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
different control is acquired step by step through multiple transactions and eventually form the
business combination, when preparing the consolidated statement, the equity of the investee held
before the purchase date is re-measured according to the fair value of the equity on the purchase
date, and the difference between the fair value and its book value is included in the current
investment income. The equity of the acquiree held before the relevant purchase date involves other
comprehensive income under the equity method and other changes in owner's equity other than net
profit and loss, other comprehensive income and profit distribution, which are converted into
investment profit and loss in the current period of the purchase date, except for other
comprehensive income arising from the remeasurement of defined benefit plans's net liabilities or
changes in net assets by the investee.
The Group partially disposes of long-term equity investments in subsidiaries without losing control,
when preparing the consolidated financial statements, the difference between the disposal price and
the share of net assets that the subsidiaries have continuously calculated since the date of purchase
or the date of consolidation is corresponding to the disposal of long-term equity investments. The
capital premium or equity premium is adjusted. If the capital reserve is insufficient to offset, the
retained earnings are adjusted.
If the Group loses control over the investee due to the disposal of some equity investments and
other reasons, the remaining equity shall be re-measured at its fair value on the date of loss of
control when preparing the consolidated financial statements. The difference between the sum of
the consideration obtained from the disposal of equity and the fair value of the remaining equity,
minus the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger, is included in
the investment profit and loss of the current period when the control right is lost, and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment, etc., will
be transferred to the current investment profit and loss when the control right is lost.
If the Group disposes of the equity investment in a subsidiary Group step by step through multiple
transactions until the loss of control right, if the transactions of the disposal of the equity investment
in a subsidiary Group until the loss of control right belong to a package transaction, the transactions
33
shall be treated as transactions of the disposal of the subsidiary Group and the loss of control right
for accounting. However, the difference between the disposal price and the share of the subsidiary's
net assets corresponding to the disposal investment before the loss of control right is recognized as
other comprehensive income in the consolidated financial statements, and is transferred to the
investment profit and loss of the current period when the control right is lost.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
The Group classifies joint arrangements into joint operations and joint ventures. For a joint
operation, the Group, as a joint operator, recognizes the assets and liabilities that it holds and bears
in the joint operation, and recognizes the jointly-held assets and jointly-borne liabilities according
to the Group’s stake in the joint operation; recognizes relevant income and expense according to the
Group’s stake in the joint operation. When the Group purchases or sells the assets not constituting
business with the joint operation, the Group only recognized the share of the other joint operators in
the gains and losses arising from the transaction.
8. Cash and Cash Equivalents
In the Group’s understanding, the cash in the cash flow statement includes cash on hand and
deposits that can be used for cover, the cash equivalents in the cash flow statement include high
circulating investments held within three months which are easily convertible into known amount
of cash and whose risks in change of value are minimal.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency transaction
As for foreign currency transaction, the Group converted the foreign currency amount into RMB
amount at the exchange rate at the beginning of the month of transaction occurrence date (normally
referred to as the central parity rate of foreign exchange rate on the same day published by the
People’s Bank of China, the same below). On the balance sheet date, the monetary items in foreign
currency were converted into RMB at the spot exchange rate on balance sheet date. Except the
exchange difference arising from special foreign-currency borrowing for the purpose of
construction or production of assets meeting capitalization conditions treated in the principle of
capitalization, the conversion difference was directly included in the current profits and losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot exchange
rate on balance sheet date; except for “undistributed profit”, owner’s equity items were converted at
the sport exchange rate at the time of business occurrence; income and expenditure items in income
statement were converted at the average exchange rate for the period (monthly average exchange
rate) of the transaction occurrence date. The conversion difference of foreign currency statements
34
arising from the aforementioned conversion was presented in other comprehensive income item.
The foreign currency cash flow was converted at the average exchange rate for the period (monthly
average exchange rate) of the cash flow occurrence date. The amount of exchange rate change
influence on cash was independently presented in cash flow statement.
10. Financial Assets and Financial Liabilities
The Group recognizes a financial asset or liability when it becomes a party of the relevant financial
instrument contract.
(1) Financial assets
1) Classification, recognition and measurement of financial assets
The Group classifies the financial assets into financial assets measured at amortized cost, financial
assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets
management and characteristics of contractual cash flow of financial assets.
The Group classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: ①The business mode of the Group to manage the financial assets
targets at collecting the contractual cash flow. ①The contract of the financial assets stipulates that
the cash flow generated in the specific date is the payment of the interest based on the principal and
outstanding principal amount. These financial assets initially measured at fair value and relevant
transaction cost shall be included into the initial recognized amount and subsequently measured at
amortized cost. Except for those designated to be hedge items, the difference between the initial
recognized amount and the amount due shall be amortized at actual interest rate and their
amortization, impairment and exchange gain and loss as well as gains or losses arising from
derecognition shall be recorded into the current profit or loss.
The Group classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: ①The Business mode for
managing financial assets of the Group takes contract cash flow collected as target and selling as
target. ①The contract of the financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. These
financial assets initially measured at fair value and relevant transaction cost shall be included into
the initial recognized amount. Except for those designated as hedged items, as for these financial
assets, except for gains or losses on credit impairment, exchange gain and loss and interest of
financial assets measured at actual interest rate, other gains or losses generated shall be recorded
into other comprehensive income. When derecognized, the accumulated gains and losses originally
recorded into other comprehensive income shall be transferred out into the current profit or loss.
The Group recognizes interest income according to the effective interest rate method. Interest
income is calculated and determined according to the book balance of the financial asset multiplied
35
by the actual interest rate, except for the following circumstances: ① For the financial asset with
credit impairment that has been purchased or originated, from the initial recognition, the interest
income is calculated and determined according to the amortized cost of the financial asset and the
actual interest rate adjusted by credit. ① For financial assets purchased or originated that have not
suffered credit impairment but have suffered credit impairment in subsequent periods, the interest
income shall be calculated and determined according to the amortized cost and actual interest rate
of the financial assets in subsequent periods.
The Group designates non-transactional investment in equity instruments as financial assets at fair
value through other comprehensive income. Those designated non-transactional investment in
equity instruments by the Group is initially measured at fair value and relevant transaction cost
shall be recorded into the initial recognized amount. Except for dividends (excluding those
belonging to recovery of investment cost) which shall be recorded into the current profit or loss,
other relevant gains and losses (including exchange gains and losses) shall be recorded into other
comprehensive income and cannot be transferred into the current profit or loss subsequently. When
derecognized, the accumulated gains or losses originally recorded into other comprehensive
income shall be transferred out into retained earnings. Equity instrument investments measured at
fair value through other comprehensive income included: Equity investments to be held in the long
term as planned by the Group for strategic purpose, with no control, joint control or significance
influence, and with no active market quotation.
The Group classifies financial assets not belonging to above two as financial assets at fair value
through profit or loss which shall be initially measured at fair value and relevant transaction cost
shall be directly recorded into the current profit or loss. Gains or losses arising from these financial
assets shall be recorded into the current profit or loss.
The contingent consideration recognized by the Group in the business combination not under the
same control which constitutes a financial asset shall be classified as the financial asset at fair value
through profit or loss.
2) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
① the rights to receive cash flows from the asset have expired; ① the enterprise has transferred its
rights to receive cash flows from the asset to a third party under a pass-through arrangement; or ①
the enterprise has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the overall transfer of financial assets fulfills the requirements for derecognition, the difference
between the book value of the transferred financial assets and the sum of the consideration received
due to the transfer and the corresponding derecognition part of the accumulated amount of fair
value changes originally directly included in other comprehensive income (the contract terms
involving the transferred financial assets stipulate that the cash flow generated on a specific date is
36
only the payment of the principal and interest based on the unpaid principal amount) shall be
included in the current profits and losses.
If the partial transfer of financial assets satisfies the conditions for termination confirmation, the
entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values, and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally included
in other comprehensive income that should be apportioned to the derecognition part And the
payment of interest based on the outstanding principal amount), and the difference between the
total book value of the aforesaid financial assets allocated is included in the current profit and loss.
(2) Financial liabilities
1) Classification, recognition and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair
value through profit or loss and other financial liabilities.
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
and financial liabilities designated at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss. The subsequent measurement shall be at fair
value and gains or losses arising from changes in fair value and the dividends and interest expense
related to the financial liability shall be the current profit or loss.
Other financial liabilities shall be subsequently measured at amortized cost with actual interest rate.
The Group classifies financial liabilities except for the following items as financial liabilities at
amortized cost: ①Financial liabilities at fair value through profit or loss including held-for-trading
financial liabilities (including the derivative instruments belonging to financial liabilities) and
designated financial liabilities at fair value through profit or loss. ①Financial liabilities arising from
the transfer of financial assets not meeting the derecognition conditions or continuous involvement
in the transferred financial assets. ①Financial guarantee contract not belonging to cases of above ①
or ① and loan commitments at interest rate lower than the market rate not belonging to the case in
①.
The Group treats the financial liability arising from contingent consideration recognized as the
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.
2) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being terminated,
derecognition of such financial liabilities (or partial financial liabilities) is conducted by the Group.
If the Group (borrower) concludes an agreement with the lender to replace existing financial
liabilities with new ones and contact terms of new financial liabilities are different from those of
existing financial liabilities, derecognition of existing financial liabilities and recognition of new
37
financial liabilities shall be conducted. In case of material alteration of contract terms of existing
financial liabilities (partial financial liabilities) by the Group, derecognition of existing financial
liabilities and recognition of new financial liabilities as per modified terms shall be conducted. In
case of derecognition of financial liabilities (partial financial liabilities), the Group includes the
balance between its carrying value and payment consideration into the current profit or loss.
(3) Determination of financial assets and liabilities’ fair value
The Group measured the fair value of financial assets and financial liabilities according to the price
at major market. If major market does not exist, the fair value of financial assets and financial
liabilities was measured according to the price at the most advantageous market through applying
valuation technique applicable at the time and with sufficient usable data and other information
support. The inputs for fair value measurement were classified into three levels. Level 1 is the
unadjusted quotation of the same assets or liabilities on active market available on the measurement
date. Level 2 is the input of relevant assets or liabilities other than that in level 1 that are observable
either directly or indirectly. Level 3 is the unobservable input of relevant assets or liabilities. The
Group preferred level 1 input, and applied level 3 input at last. Level 1 input was applicable for
listed stock and bond held by the Group, level 2 input for financing of accounts receivable (mainly
bank acceptance bill and trade acceptance bill meeting derecognition requirements after transfer),
and level 3 input for other non-current financial assets (unlisted equity investment held by the
Group) and held-for-trading financial assets (mainly financial products held by the Group). The
level attributed to the fair value measurement result was determined according to the lowest level of
the input with much significance to fair value measurement in general.
The Group measured the investment of equity instruments at fair value. However, under limited
situation, if the recent information for determining the fair value was insufficient, or the potential
estimated amount of fair value was in wide range, and the cost represented the optimal estimation
of fair value in such range, such cost could represent appropriate estimation of fair value in such
range. Such equity instrument investments included: Equity investments held by the Group
measured at fair value with changes included in the current profits and losses with no control, joint
control or significance influence; non-trading equity instrument investments were designated as
financial assets measured at fair value through other comprehensive income.
(4) Offsetting financial assets and financial liabilities
The Group’s financial assets and liabilities shall be separately presented in the balance sheet and
not set off each other. But when meeting the following conditions at the same time, the net amount
after offset shall be presented in the balance sheet: (1) The Group has the statutory right to set off
recognized amount which is currently executable; (2) The Group plans to settle with the net amount
or realize the financial asset and pay off the financial liability simultaneously.
(5) The distinction between financial liabilities and equity instruments and related treatment
methods
The Group distinguishes the financial liabilities and equity instruments according to the following
38
principles: (1) If the Group cannot unconditionally avoid performing a contractual obligation by
delivering cash or other financial assets, the contractual obligation meets the definition of financial
liabilities. Although some financial instruments do not explicitly include the terms and conditions
of the obligation to deliver cash or other financial assets, they may indirectly form contractual
obligations through other terms and conditions. (2) If a financial instrument must be settled with or
can be settled with the Group's own equity instrument, it is necessary to consider whether the
Group's own equity instrument used to settle the instrument is used as a substitute for cash or other
financial assets, or to enable the holder of the instrument to enjoy the residual equity in the assets of
the issuer after deducting all liabilities. If it belongs to the former condition, the instrument is the
financial liability of the issuer; if it belongs to the latter condition, the instrument is the equity
instrument of the issuer. In some cases, a financial instrument contract requires the Group to use or
use its own equity instrument to settle the financial instrument, in which the amount of contractual
rights or contractual obligations is equal to the number of its own equity instruments available or to
be delivered multiplied by its fair value at the time of settlement, regardless of whether the amount
of contractual rights or obligations is fixed, whether it is entirely or partially based on changes in
variables other than the market price of the Group's own equity instruments, the contract shall be
classified as a financial liability.
In classifying financial instruments (or their components) in the consolidated statement, the Group
has taken into account all terms and conditions reached between the Group members and the
holders of financial instruments. If the Group as a whole undertakes the obligation to deliver cash,
other financial assets or settle accounts in other ways that cause the instrument to become a
financial liability due to the instrument, the instrument shall be classified as a financial liability.
If financial instruments or their components are financial liabilities, the Group will include interest,
dividends (or dividends), gains or losses, and gains or losses arising from redemption or refinancing,
etc. in the current profits and losses.
If financial instruments or their components are equity instruments, when they are issued (including
refinancing), repurchased, sold or cancelled, the Group will treat them as changes in equity and will
not recognize changes in the fair value of equity instruments.
11. Impairment of Financial Assets
The Group needs to confirm that the financial assets subject to the impairment loss are the financial
assets measured based on the amortized cost, the debt instrument investment measured based on the
fair value with its variations included into other comprehensive incomes and the lease outlay
receivable, mainly including notes receivable, account receivable, other receivables, investment on
creditor’s rights, other investments on creditor’s rights and long-term receivables etc. Besides, in
respect of the contract assets and partial financial guarantee contract, corresponding impairment
provisions shall be calculated and withdrawn and corresponding credit impairment losses
recognized according to various accounting policies mentioned in this part.
39
(1) Methods for the Recognition of Impairment Provisions
For all mentioned items above, the Group shall calculate and withdraw corresponding impairment
provisions and recognize corresponding credit impairment losses according to applicable expected
credit loss measurement methods (general methods or simplified methods) with the expected credit
loss as the basis.
Credit loss refers to the difference between all receivable contract cash flows and all expected cash
flows that are discounted to the present value based on the original actual interest rate -- the present
value of all cash shortfall. However, for the purchased or original financial assets subject to the
credit impairment, the Group shall realize the discounting based on the actual interest rate subject to
the credit adjustment.
General methods applied to measure the expected credit loss can be described as: the Group shall
evaluate whether the credit risk of the financial assets (including the contract assets and other
applicable items; the same below) increases remarkably after the initial recognition on the balance
sheet day; if the credit risk increases remarkably after the initial recognition, the Group shall
measure the provision for loss based on the specific expected credit loss amount during the entire
period of existence; if not, the Group shall measure the provision for loss based on the specific
expected credit loss amount in the following 12 months. While evaluating the expected credit loss,
the Group shall take all reasonable and well-founded information into consideration, including the
forward-looking information.
For the financial instrument of lower credit risk on the balance sheet day, the Group shall assume
that its credit risk does not increase remarkably after the initial recognition, and corresponding
provision for loss shall be measured according to the expected credit loss in the following 12
months.
(2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial
Recognition
If any financial assets’ probability of default within the expected period of existence determined on
the balance sheet day is obviously higher than that within the expected period of existence
determined during the initial recognition, it shall indicate the remarkable increase of the financial
assets’ credit risk. Unless it is under special circumstances, the Group shall adopt various variations
in the default risk in the following 12 months as the reasonable basis for estimating corresponding
variations in the default risk within the entire period of existence and determining whether the
credit risk increases remarkably after the initial recognition.
(3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk, the Group shall separately evaluate its
credit risk, including the receivables from related parties, receivables involved in any dispute with
the other party or any lawsuit and arbitration, and receivables with obvious evidence showing that
the debtor cannot fulfill the due payment obligation etc.
40
Except for the financial assets whose credit risk shall be separately evaluated, the Group shall
divide these financial assets into different combinations based on the specific risk features, on
which basis, corresponding credit risks can be evaluated.
(4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period, the Group shall calculate the expected credit losses of various financial
assets. If the expected credit loss is higher than the carrying amount of its current impairment
provision, the difference shall be recognized as the impairment loss; if lower, the difference shall be
recognized as the gain from the impairment.
12. Notes Receivable
For notes receivable, the Group shall measure the provision for loss based on the specific expected
credit loss during the entire period of existence. According to the credit risk characteristics thereof,
except those with separate evaluation of credit risk, notes receivable can be divided into different
combinations:
Item Basis
Bank Acceptance The Accepter shall be the bank with high credit level and low risks
Classified by credit risk of acceptors (the same as accounts
Trade Acceptance
receivable)
13. Accounts Receivable
For account receivable and contract assets excluding significant financing composition, the Group
shall measure the provision for loss according to the specific expected credit loss amount within the
entire period of existence.
For account receivable, contract assets and lease payment receivable including significant
financing composition, the Group shall always measure the provision for loss according to the
specific expected credit loss amount within the period of existence.
Except the account receivable and contract assets whose credit risks shall be separately evaluated,
the Group shall divide them into different combinations based on the specific credit risks:
Item Basis
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.
The accounts receivable from the other entities within the
Related party combination
consolidation scope
41
14. Accounts Receivable Financing
The Group’s accounts receivable financing is based on expected credit losses, and provision is
made for depreciation reserves in accordance with the expected credit loss measurement method
for notes receivable.
15. Other Receivables
The Group measures the loss reserves on other receivables in accordance with the following
circumstances: a) For financial assets whose credit risk has not significantly increased since the
initial recognition, the Group measures the loss reserves at the amount of expected credit losses for
the next 12 months; b) For financial assets whose credit risk has increased significantly since the
initial recognition, the Group measures the loss reserves at an amount equal to the expected credit
losses for the entire period of the financial instrument; c) For financial assets purchased or
originated from credit impairment, the Group measures the loss reserves at an amount equal to the
expected credit losses over the entire period of the financial instrument. Except other receivables
whose credit risks shall be separately evaluated, the Group shall divide them into different
combinations based on the specific credit risk features:
Item Basis
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.
This combination shall regard other receivables of extremely low risk
Low Risk Combination (including the revolving fund, the cash deposit and the guarantee
deposit) as the credit risk feature.
Related party Other receivables from the other entities within the consolidation
combination scope
16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases remarkably after
the initial recognition, the Group shall measure the impairment loss based on the specific expected
credit loss in the following 12 months or during the entire period of existence. Except long-term
account receivables whose credit risks shall be separately evaluated, the Group shall divide them
into different combinations based on the specific credit risk features:
Item Basis
Financing Lease Regarding the long-term receivables related to the financing lease as the
Combination credit risk characteristics
42
Item Basis
Regarding the long-term receivables related to the PPP Project as the credit
Franchise Combination
risk characteristics
17. Inventories
The Group's inventories mainly include raw materials, products in process, semi-finished products,
Products on hand,and entrusted processing materials.
The perpetual inventory method is used for inventories. Inventories are priced at the actual cost at
the time of acquisition; the actual cost of inventories is determined by the weighted average method
when inventories are claimed or issued. Low-value consumables and packaging are amortized
through the one-off charge-off method.
The net realizable value of inventories of goods that are used directly for sale, such as inventory
goods, products in process, and materials for sale, is determined by the estimated selling price of
the inventory minus estimated sale expenses, and related taxes; the net realizable value of
inventories of materials held for production is determined by the estimated selling price of the
finished goods produced minus the estimated costs of completion, estimated sale expenses, and
related taxes.The inventories with various numbers and low unit price shall be made provisions for
depreciation reserves of inventories according to the category of inventories. For inventories that
are produced and sold in the same region with same or similar end use or purposes, and hard to be
measured separately from other items, it shall be made merger provisions for falling price of
inventories.
The net realizable value refers, in the ordinary course of business, to the account after deducting the
estimated cost of completion, estimated sale expense and relevant taxes from the estimated sale
price of inventories. The net realizable value of inventories shall be fixed on the basis of valid
evidence as well as under consideration of purpose of inventories and the effect of events after
balance-sheet-date.
After withdrawing the depreciation reserves for inventories, if the factors, which cause any
write-down of the inventories, have disappeared, causing the net realizable value of inventories is
higher than its carrying amount; the amount of write-down shall be reversed from the original
amount of depreciation reserve for inventories. The reversed amount shall be included in the profits
and losses of the current period.
18. Contract Assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Group to receive consideration after transferring goods to
customers, and this right depends on factors other than the passage of time. If the Group sells two
clearly distinguishable products to customers, it has the right to receive payment because one of the
43
products has been delivered, but the payment is also dependent on the delivery of the other product,
the Group has the right to receive payment as a contract assets.
(2) Determination method and accounting treatment method of expected credit loss of contract
assets
For the method of determining the expected credit loss of contract assets, see the Note IV-11.
Impairment of Financial Assets, Note IV-12. Notes Receivable and Note IV-13. Accounts
Receivable.
The Group calculates the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the book value of the current contract asset impairment
provision, the Group will recognize the difference as an impairment loss and debit the "asset
impairment loss". Credited "Contract asset impairment provision". On the contrary, the Group
recognizes the difference as an impairment gain and keeps the opposite accounting records.
If the Group actually incurs credit losses and determines that the relevant contract assets cannot be
recovered, and the written-off is approved, the "contract asset impairment reserve" is debited and
the "contracted asset" is credited based on the approved write-off amount. If the written-off amount
is greater than the provision for loss that has been withdrawn, the "asset impairment loss" is debited
based on the difference.
19. Contract Costs
(1) The method of determining the amount of assets related to contract costs
The Group’s assets related to contract costs include contract performance costs and contract
acquisition costs.
The contract performance cost, that is, the cost incurred by the Group for the performance of the
contract, does not fall within the scope of other accounting standards and meets the following
conditions at the same time, as the contract performance cost is recognized as an asset: the cost and
a current or expected contract Directly related, including direct labor, direct materials,
manufacturing expenses, clearly the cost borne by the customer, and other costs incurred only due
to the contract; this cost increases the Group's future resources for fulfilling its performance
obligations; This cost is expected to be recovered.
The contract acquisition cost, that is, the incremental cost incurred by the Group to obtain the
contract is expected to be recovered, and is recognized as an asset as the contract acquisition cost; if
the asset amortization period does not exceed one year, it is included in the current profit and loss
when it occurs. Incremental cost refers to the cost (such as sales commission, etc.) that the Group
will not incur without obtaining the contract. The Group's expenses incurred in obtaining the
contract, other than the expected incremental cost that can be recovered (such as travel expenses
incurred regardless of whether the contract is obtained, etc.), are included in the current profit and
loss when they are incurred, but it is clearly borne by the customer except.
44
(2) Amortization of assets related to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the commodity
revenue recognition related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Group determines the impairment loss of assets related to contract costs, it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant business accounting standards; then, based on their book value
higher than the Group’s transfer and If the difference between the remaining consideration that the
asset-related commodity is expected to obtain and the estimated cost incurred for the transfer of the
relevant commodity, the excess shall be provided for impairment and recognized as an asset
impairment loss.
If the depreciation factors of the previous period have changed, and the aforementioned difference
is higher than the book value of the asset, the original provision for asset impairment shall be
reversed and included in the current profit and loss, but the book value of the asset after the reversal
shall not exceed Assuming no provision for impairment is made, the book value of the asset on the
date of reversal.
20. Long-term Equity Investments
The Group's long-term equity investments mainly consist of investments in subsidiaries, associated
enterprises, and joint ventures.
The Group’s judgment on joint control is based on the fact that all participants or a combination of
participants collectively control the arrangement and that the policies of the activities related to the
arrangement shall be unanimously agreed by those participants who.
The Group is generally considered to have a significant influence on the investee when it owns,
directly or indirectly through a subsidiary, above 20% but below 50% of the voting rights of the
investee. If the Group holds less than 20% of the voting rights of the investee, it also needs to judge
whether the Group has a significant influence on the investee by taking into account the facts and
circumstances such as having representatives on the board of directors or similar authority of the
investee, or participating in the process of formulating financial and operating policies of the
investee, or having major transactions with the investee, or sending management personnel to the
investee, or providing key technical information to the investee.
If control over the investee is formed, it is a subsidiary of the Group. For long-term equity
investment acquired through business combination under the same control, the initial investment
cost of the long-term equity investments is recorded at the merger date based on the acquisition of
the merged party's share of the book value of the net assets of the ultimate controller in the
consolidated financial statement. If the book value of the net assets of the merged party on the
merger date is negative, the cost of long-term equity investments is determined as zero.
45
If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the treatment
of long-term equity investments in the parent Group's financial statements shall be made in the
Reporting Period in which control is obtained. For example, if the business combination that is
ultimately formed through multiple transactions to acquire the equity of the investee under the same
control belongs to a package deal, the Group shall conduct accounting treatment to treat each
transaction as a single transaction to acquire control. If the transaction is not a package deal, the
initial investment cost of the long-term equity investment is based on the share of the book value of
the net assets of the merged party in the consolidated financial statements of the ultimate controller
at the merger date. The difference between the initial investment cost and the sum of the book value
of the long-term equity investment before the merger plus the book value of the new consideration
paid for further acquisition of shares at the merger date shall offset against capital reserve; and
where capital reserve is insufficient to be offset, the retained earnings shall be adjusted.
For long-term equity investment acquired through business combination not under the same control,
the initial investment cost shall be the consolidation cost.
If the equity of the investee not under the same control is acquired in stages through multiple
transactions to eventually result in a business combination, additional disclosures of the cost
treatment of long-term equity investments in the parent Group's financial statements shall be made
in the Reporting Period in which control is obtained. For example, if the business combination that
is ultimately formed through multiple transactions to acquire the equity of the investee not under
the same control belongs to a package deal, the Group shall conduct accounting treatment to treat
each transaction as a single transaction to acquire control. If the transaction is not a package deal,
the sum of the book value of the equity investment originally held plus the cost of the new
investment shall be the initial investment cost calculated in accordance with the cost method. If the
equity held prior to the purchase date is accounted by the equity method, the relevant other
comprehensive income accounted by the original equity method shall not be adjusted. The same
basis of accounting as that used for the direct disposal of the related assets or liabilities by the
investee is used for the disposal of the investment. If the equity held prior to the purchase date is a
financial asset designated to be measured at fair value with fluctuations included in other
comprehensive income, the cumulative profit or loss on the equity previously recognized in other
comprehensive income shall be transferred from other comprehensive income to the retained
earnings; if the equity is a financial asset measured at fair value and the changes of which are
included in profits and losses of the current period, the equity previously recognized as profits and
losses from the changes in fair value shall not be transferred to investment income. If the equity
held prior to the purchase date is an investment for other equity instruments, the changes in fair
value of the equity investment accumulated in other comprehensive income before the purchase
date shall be transferred to the retained earnings.
Except for the long-term equity investments acquired through business combination hereinabove,
46
long-term equity investments acquired by paying cash are recorded as investment cost based on the
actual purchase price paid; long-term equity investments acquired by issuing equity securities are
recorded as investment cost based on the fair value of the equity securities issued; long-term equity
investments invested by investors are recorded as investment cost based on the value agreed in the
investment contract or agreement.
The Group calculates its investments in subsidiaries through the cost method and its investments in
joint ventures and associate enterprises through the equity method.
For long-term equity investments calculated by the cost method for subsequent measurement, the
book value of the cost of long-term equity investments shall be increased by the fair value of the
cost amount paid for the additional investment and relevant transaction costs incurred when the
additional investment is made. Cash dividends or profits declared by the investee are recognized as
investment income for the current period in accordance with the due amount.
In addition to the above-mentioned long-term equity investment obtained through business
combination, the long-term equity investment obtained by paying cash shall be regarded as the
investment cost according to the purchase price actually paid; the long-term equity investment
obtained by issuing equity securities shall be regarded as the investment cost according to the fair
value of issuing equity securities; the long-term equity investment invested by investors shall be
regarded as the investment cost according to the investment contract or agreement The value of the
Group is regarded as the cost of investment.
The Group adopts the cost method for investment in subsidiaries and the equity method for
investment in joint ventures and associated enterprises.
For the long-term equity investment whose subsequent measurement adopts the cost method, when
the additional investment is made, the book value of the long-term equity investment cost is
increased according to the fair value of the cost amount paid by the additional investment and the
relevant transaction expenses. The cash dividends or profits declared to be distributed by the
investee shall be recognized as the current investment income according to the amount that should
be enjoyed.
For the long-term equity investment with equity method for subsequent measurement, the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee,
the net profit and loss of the investee shall be calculated based on the fair value of the identifiable
assets of the investee at the time of obtaining the investment, in accordance with the accounting
policies and accounting period of the Group, and offset the internal transaction profit and loss
between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.
For disposal of long-term equity investment, the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment
accounted by equity method, other comprehensive income accounted by the original equity method
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shall be accounted on the same basis as the investee's direct disposal of relevant assets or liabilities
when the equity method is terminated, and the owner's equity shall be recognized due to other
changes in owner's equity of the investee except net profit and loss, other comprehensive income
and profit distribution When the equity method is terminated, all of them shall be transferred into
the current investment income.
In case of loss of joint control or significant influence on the investee due to the disposal of part of
equity investment, the remaining equity after disposal shall be accounted according to the relevant
provisions of the recognition and measurement standards of financial instruments, and the
difference between the fair value and the book value of the remaining equity on the date of loss of
joint control or significant influence shall be included in the current profits and losses. When the
equity method is terminated, the other comprehensive income of the original equity investment
recognized as a result of its accounting with the equity method shall be handled on the same basis as
the investee's direct disposal of the relevant assets or liabilities and carried forward in proportion.
The owner's equity recognized as a result of the changes in the owner's equity of the investee other
than net profit and loss, other comprehensive income and profit distribution shall be carried
forward in proportion Transfer to current investment income.
If the control over the investee is lost due to the disposal of part of the long-term equity investment,
and the residual equity after disposal can jointly control or exert significant influence on the
investee, it shall be accounted according to the equity method, and the difference between the book
value of the disposal equity and the disposal consideration shall be included in the investment
income, and the residual equity shall be regarded as adjusted by the equity method when it is
obtained If the residual equity cannot exercise joint control or exert significant influence on the
investee, the accounting treatment shall be carried out according to the relevant provisions of the
recognition and measurement standards of financial instruments. The difference between the book
value of the disposal equity and the disposal consideration shall be included in the investment
income, and the difference between the fair value and the book value of the residual equity on the
day of losing control shall be included in the current profits and losses.
If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction, accounting treatment shall be carried out for each transaction separately. If it is
a "package deal", each transaction will be treated as a transaction of disposal of subsidiaries and
loss of control. However, before the loss of control, the difference between the disposal price of
each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income, and when the control is lost, it
will be transferred to the current account of loss of control Period profit and loss
21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group include the right to use any land which has already
48
been rented; the right to use any land which is held and prepared for transfer after appreciation; and
the right to use any building which has already been rented. In addition, if the board of directors (or
similar organizations) makes a written resolution to use the vacant buildings held by the Group for
operating lease and the holding intention will not change in a short time, they will also be listed as
investment real estate.
The initial measurement of the investment property shall be made at its cost. Subsequent
expenditures incurred for an investment property is included in the cost of the investment property
when it is probable that economic benefits associated with the investment property will flow to the
Group and the cost can be reliably measured, otherwise the expenditure is recognized in profit or
loss in the period in which they are incurred.
The Group shall make a follow-up measurement to the investment property by employing the cost
pattern on the date of the balance sheet. An accrual depreciation or amortization shall be made for
the investment property in the light of the accounting policies of the use right of buildings or lands.
For details of impairment test method and withdrawal method of impairment provision of
investment property, please refer to Note IV. 27. “Long-term assets impairment”.
The Group's investment real estate adopts the average life method for depreciation or amortization.
The expected service life, net residual value rate and annual depreciation (amortization) rate of all
kinds of investment real estate shall refer to the depreciation policy of buildings in fixed assets and
the amortization policy of land use right in intangible assets.
When owner-occupied real estate or inventories are changed into investment property or
investment property is changed into owner-occupied real estate, of which book value prior to the
change shall be the entry value after the change.
When an investment property is changed to an owner-occupied real estate, it would be transferred
to fixed assets or intangible assets at the date of such change. When an owner-occupied real estate
is changed to be held to earn rental or for capital appreciation, the fixed asset or intangible asset is
transferred to investment property at the date of such change. If the fixed asset or intangible asset is
changed into investment property measured by adopting the cost pattern, whose book value prior to
the change shall be the entry value after the change; if the fixed asset or intangible asset is changed
into investment property measured by adopting the fair value pattern, whose fair value on the date
of such change shall be the entry value after the change.
An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The amount of proceeds on sale, transfer, retirement or damage of an investment property less its
carrying amount and related taxes and expenses is recognized in profit or loss in the period in which
it is incurred.
22. Fixed Assets
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The Group’s fixed assets are tangible assets held for the production of goods, provision of services,
rental or operation management and have a useful life of more than one year.
Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Group and their cost can be measured reliably. The Group’s fixed
assets include buildings and constructions, machinery and equipment, electronic equipment,
transportation equipment, and other equipment.
The Group depreciates all fixed assets by straight-line method, except for fully depreciated fixed
assets that continue to be used and land that is separately valued. The categorized depreciable lives,
estimated net salvage rates and depreciation rates of the Group’s fixed assets are as follows.
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
Housing and Straight-line
1 20-40 5-10.00 2.25-4.75
building depreciation
Machinery Straight-line
2 5-10 5-10.00 9.00-19.00
equipment depreciation
Electronic Straight-line
3 3-5 5-10.00 18.00-31.67
equipment depreciation
Transportation Straight-line
4 3-5 5-10.00 18.00-31.67
vehicle depreciation
Straight-line
5 Other equipment 5 5-10.00 18.00-19.00
depreciation
The estimated useful life, estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.
23. Construction in Progress
On the date when the construction in progress reaches its intended useable state, fixed assets are
carried forward at the estimated value based on the project budget, cost or actual cost of the project,
etc. Depreciation starts from the following month, and the difference in the original value of fixed
assets is adjusted after the completion of the final accounting procedures.
24. Borrowing Costs
For incurred borrowing costs, which can be directly attributed to fixed assets, investment real estate
and inventory that need more than one year of purchasing, construction or production activities to
reach the preset usable or sellable status, shall be capitalized when the asset expenditure has
50
occurred, the borrowing costs have occurred, and the purchasing, construction or production
activities necessary for the asset to reach the preset usable or sellable status have begun; When the
acquisition, construction or production of assets that meet the capitalization conditions reach the
intended usable or sellable status, capitalization is stopped, and the borrowing costs incurred
thereafter are included in the profits and losses of the current period. If there is an abnormal
interruption in the acquisition, construction or production of assets that meet the capitalization
conditions and the interruption lasts for more than 3 consecutive months, the capitalization of
borrowing costs will be suspended until the acquisition, construction or production of assets starts
again.
The to-be-capitalized amount of interests shall be determined in light of the actual interests incurred
of the specially borrowed loan at the present period minus the income of interests earned on the
unused borrowing loans as a deposit in the bank or as a temporary investment; the enterprise shall
calculate and determine the to-be-capitalized amount on the general borrowing by multiplying the
weighted average asset disbursement of the part of the accumulative asset disbursements minus the
general borrowing by the capitalization rate of the general borrowing used. The capitalization rate
shall be calculated and determined in light of the weighted average interest rate of the general
borrowing.
25. Right-of-Use Assets
The right-of-use assets refer to the right of the Group as the lessee to use the leased assets during the lease term.
(1) Initial measurement
After the commencement date of the lease term, the Group uses the cost for initial measurement of right-of-use assets.
The cost includes the following four items: a) The initial measurement amount of lease liabilities; b) If there is a lease
incentive for the lease payment paid on or before the commencement date of the lease term, the relevant amount of the
lease incentive already enjoyed shall be deducted; c) The initial direct expenses incurred are the incremental costs
incurred in reaching the lease; d) The costs expected to be incurred for dismantling and removing the leased assets,
restoring the site where the leased assets are located or restoring the leased assets to the state agreed in the lease terms,
except those incurred for the production of inventories.
(2) Follow-up measurement
After the commencement date of the lease term, the Group adopts the cost model to carry out follow-up measurement of
the right-of-use assets, that is, the right-of-use assets are measured at cost less accumulated depreciation and accumulated
impairment losses. If the Group re-measures the lease liabilities according to the relevant provisions of the lease standards,
the book value of the right-of-use assets shall be adjusted accordingly.
(3)Depreciation of right-of-use assets
From the commencement date of the lease term, the Group has accrued depreciation on the right-of-use assets.
Right-of-use assets are usually depreciated from the month when the lease term begins. The accrued depreciation amount
is included in the cost of related assets or current profits and losses according to the use of the right-of-use assets.
When determining the depreciation method of the right-of-use assets, the Group makes a decision based on the expected
consumption mode of the economic benefits related to the right-of-use assets, and accrues depreciation for the
right-of-use assets on the straight-line method.
When determining the depreciation period of the right-of-use assets, the Group follows the following principles: If the
ownership of the leased assets can be reasonably determined when the lease term expires, depreciation shall be accrued
51
within the remaining service life of the leased assets; if it cannot be reasonably determined that the ownership of the
leased asset can be obtained when the lease term expires, depreciation shall be accrued within the shorter of the lease term
and the remaining service life of the leased asset.
(4)Impairment of right-of-use assets
If the right-of-use assets are impaired, the Group carries out subsequent depreciation according to the book value of the
right-of-use assets after deducting the impairment loss.
26. Intangible Assets
The Group’s intangible assets include land use rights, patented technology and non-proprietary
technology, which are measured at actual cost at the time of acquisition. Acquired intangible assets
are stated at actual cost based on the actual price paid and related other expenses. The actual cost of
intangible assets invested by investors is determined at the value agreed in the investment contract
or agreement, but if the agreed value in the contract or agreement is not fair, the actual cost is
determined at fair value. Intangible assets, such as patents, acquired in a merger not under common
control but owned by the acquiree but not recognized in its financial statements, are recognized as
intangible assets at fair value at the time of initial recognition of the acquiree’s assets.
Land use rights are amortized equally over the years from the commencement date of the grant;
intangible assets such as software and patents are amortized equally over the shortest of the
estimated useful life, the contractual beneficiary life and the effective life prescribed by law. The
amortization amount is charged to the cost of the related assets and current profit or loss according
to their beneficiaries. The estimated useful life and amortization method of intangible assets with
finite useful lives are reviewed at the end of each year. Accounting estimation methods are used
when changes are required.
The main research and development projects of the Group include the performance improvement
project of Mini & Micro LED.
(1) Specific criteria for dividing the research phase and development phase
“Research” means an original and planned investigation to acquire and understand new scientific or
technical knowledge.
“Development” means the application of research results or other knowledge to one or more plans
or designs to produce new or substantially improved materials, devices, products, or to obtain new
processes, etc., prior to commercial production or use.
Expenses for the research phase are charged to current profit or loss as incurred.
(2) Specific criteria for capitalization of development stage expenditures
Expenditures in the development stage are capitalized when the following conditions are met.
① It is feasible technically to finish intangible assets for use or sale;
① It is intended to finish and use or sell the intangible assets;
① The usefulness of methods for intangible assets to generate economic benefits shall be proved,
52
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally;
① It is able to finish the development of the intangible assets, and able to use or sell the intangible
assets, with the support of sufficient technologies, financial resources and other resources;
① The development expenditures of the intangible assets can be reliably measured.
27. Impairment of Long-term Assets
For non-current financial Assets of fixed Assets, projects under construction, intangible Assets
with limited service life, investing real estate with cost model, long-term equity investment of
subsidiaries, cooperative enterprises and joint ventures, the Group should judge whether decrease
in value exists on the date of balance sheet. Recoverable amounts should be tested for decrease in
value if it exists. Other intangible Assets of reputation and uncertain service life and other
non-accessible intangible assets should be tested for decrease in value no matter whether it exists.
If the recoverable amount is less than carrying value in impairment test results, the provision for
impairment of differences should include in impairment loss. Recoverable amounts would be the
higher of net value of asset fair value deducting disposal charges or present value of predicted cash
flow. Asset fair value should be determined according to negotiated sales price of fair trade. If no
sales agreement exists but with asset active market, fair value should be determined according to
the Buyer’s price of the asset. If no sales agreement or asset active market exists, asset fair value
could be acquired on the basis of best information available. Disposal expenses include legal fees,
taxes, cartage or other direct expenses of merchantable Assets related to asset disposal. Present
value of predicted asset cash flow should be determined by the proper discount rate according to
Assets in service and predicted cash flow of final disposal. Asset depreciation reserves should be
calculated on the basis of single Assets. If it is difficult to predict the recoverable amounts for single
Assets, recoverable amounts should be determined according to the belonging asset group. Asset
group is the minimum asset combination producing cash flow independently.
In impairment test, carrying value of the business reputation in financial report should be shared to
beneficial asset group and asset group combination in collaboration of business merger. It is shown
in the test that if recoverable amounts of shared business reputation asset group or asset group
combination are lower than book value, it should determine the impairment loss. Impairment loss
amount should firstly be deducted and shared to the carrying value of business reputation of asset
group or asset group combination, then deduct carrying value of all assets according to proportions
of other carrying value of above assets in asset group or asset group combination except business
reputation.
After the asset impairment loss is determined, recoverable value amounts would not be returned in
future.
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28. Long-term Deferred Expenses
The Long-term deferred expenses of the Group including renovation cost, mold cost and so on shall
be amortized evenly during the benefit period. If these long-term deferred expenses cannot benefit
the future accounting period, the amortized value of this item that has not been amortized shall be
transferred to the current profit and loss.
29. Contract Liabilities
Liabilities of contracts refer to the Group's obligation to transfer goods to customers due to the
consideration received or receivable from customers. Before the transfers, if the customer has paid
the consideration or if the Group has obtained the right to unconditionally collect the contract
consideration, the liabilities of contracts shall be recognized based on the amount received or
receivable at the earlier point between the actual payment by the customer and the payment due.
30. Employee Compensation
Salaries of staff of the Group include short-term salary, post-employment benefits, termination
compensation, and other long-term benefits.
Short-term salary mainly includes wages, bonuses, allowances and subsidies, as well as employee
benefits, medical insurance, maternity insurance, employment injury insurance, housing provident
fund, labor union expenses, and staff education expenses, and non-monetary benefits. During the
accounting period when the employees provide services, the actual short-term compensation is
recognised as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.
The post-employment benefits mainly include the basic endowment insurance, etc. They are
divided into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Group. According to the defined contribution plan, the deposit paid
to a separate entity in exchange for the services provided by the employees during the accounting
period on the balance sheet date is recognized as liabilities, and shall be included in the current
profit and loss or the cost of related assets according to the beneficiary. If the Group has a defined
benefit plan, the specific accounting method should be explained.
When terminating labour relations before expiration of contract, or layoffs with compensations,
and the Group cannot terminate the labour relations unilaterally or reduce the demission welfare,
remuneration and liabilities produced from the demission welfare should be determined and
included in current profits and losses when determining the costs of demission welfare and
recombination. However, demission welfare not fully paid within 12 months after annual Reporting
Period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above
54
dismiss ion welfare. The Group would recorded the salary and the social security insurance fees
paid and so on from the employee’s service termination date to normal retirement date into current
profits and losses (dismission welfare) under the condition that they meet the recognition
conditions of estimated liabilities.
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should be accounting
disposed according to the setting drawing plan, while the rest should be disposed according to the setting revenue plan.
31. Lease Liabilities
(1) Initial measurement
The Group initially measures the lease obligation at the present value of the lease payments outstanding at the
commencement date of the lease term.
1) Lease payments
Lease payments refer to the amount paid by the Group to the lessor related to the right to use the leased assets during the
lease term, including: a) Fixed payment amount and substantial fixed payment amount. If there is lease incentive, deduct
the amount related to lease incentive; b) The variable lease payment amount depending on the index or ratio, which is
determined according to the index or ratio on the commencement date of the lease term at the initial measurement; c)
When the Group reasonably determines the exercise price of the purchase option when it will exercise it; d) The lease
term reflects the amount to be paid to exercise the termination option when the Group will exercise the termination option;
e) The amount expected to be paid based on the residual value of the guarantee provided by the Group.
2) Rate of discount
When calculating the present value of the lease payments, the Group uses the interest rate implicit in lease as the rate of
discount, which is the interest rate at which the sum of the present value of the lessor's lease receipts and the present value
of the unsecured residual value equals the sum of the fair value of the leased asset and the lessor's initial direct expenses.
If the Group fails to determine the interest rate implicit in lease, the incremental interest rate on borrowing will be used as
the rate of discount. The incremental interest rate on borrowing shall mean the interest rate payable by the Group to
borrow funds under similar mortgage conditions during similar periods to acquire assets close to the value of the
right-of-use assets under similar economic circumstances. The interest rate is related to the following matters: a) The
Group's own situation, that is, the Company's solvency and credit status; b) The term of "loan", that is, the lease term; c)
The amount of "borrowed" funds, that is, the amount of lease liabilities; d) "Mortgage conditions", that is, the nature and
quality of the underlying assets; e) Economic environment, including the jurisdiction where the lessee is located, the
valuation currency, the time when the contract is signed, etc. The incremental borrowing rate is based on the Group's
latest asset-based lending interest rate for similar assets and adjusted to take into account the above factors.
(2) Follow-up measurement
After the commencement date of the lease term, the Group carries out follow-up measurement of lease liabilities
according to the following principles: a) When recognizing the interest of lease liabilities, the Group will increase the
carrying amount of lease liabilities; b) When paying the lease payments, the Group will reduce the book amount of the
lease liability; c) When the lease payments changes due to revaluation or lease change, the Group will remeasure the book
value of lease liability.
The Group calculates the interest expenses of the lease obligations during each period of the lease term at a fixed periodic
interest rate, and includes them (except those that shall be capitalized) in profit or loss for the current period. Periodic rate
refers to the rate of discount adopted by the Group when initially measuring lease liabilities, or the revised rate of discount
adopted by the Group when lease liabilities need to be remeasured according to the revised rate of discount due to
changes in lease payments or lease changes.
(3) Re-measurement
55
After the commencement date of the lease term, the Group re-measures the lease liability based on the present value of the
changed lease payment and adjusts the book value of the right-of-use assets accordingly when the following
circumstances occur. If the carrying value of the right-of-use assets has been reduced to zero, but the lease obligations still
need to be further reduced, the Group will include the remaining amount in profit or loss for the current period. a) The
actual fixed payment amount changes (in this case, the original rate of discount is used for discount); b) The estimated
amount payable of the residual value changes (in this case, the original rate of discount is used for discount); c) The index
or ratio used to determine the lease payment changes (in this case, the revised rate of discount is used for discount); d) The
evaluation result of the purchase option changes (in this case, the revised rate of discount is adopted for discount); e) The
evaluation result or actual exercise of the lease renewal option or the lease termination option changes (in this case, the
revised rate of discount is adopted for discount).
32. Provisions
The Group should recognize the related obligation as a provision for liability when the obligation
meets the following conditions: (1) That obligation is a present obligation of the enterprise; (2) It is
probable that an outflow of economic benefits from the enterprise will be required to settle the
obligation; (3) A reliable estimate can be made of the amount of the obligation.
On the balance sheet date, an enterprise shall take into full consideration of the risks, uncertainty,
time value of money, and other factors pertinent to the Contingencies to measure the provisions in
accordance with the best estimate of the necessary expenses for the performance of the current
obligation.
When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides, the
amount recognized for the reimbursement should not exceed the carrying value of the estimated
liabilities.
33. Principles of Revenue Recognition and Measurement Method
The revenue of the Group mainly consists of the income from main business and the income from
other businesses.
(1)Revenue recognition principle
The Group has fulfilled the performance obligations in the contract, that is, when the customer
obtains control of the relevant goods or services, revenue is recognized. Obtaining control over
related goods or services means being able to lead the use of the goods or the provision of such
services and obtain almost all of the economic benefits from it.
On the starting date of the contract, the Group evaluates the contract, identifies each individual
performance obligation contained in the contract, and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time.
56
When one of the following conditions is met, it is a performance obligation within a certain period
of time, otherwise, it is a performance obligation at a certain point in time:
①The customer obtains and consumes the economic benefits brought by the Group's performance
at the same time the Group performs the contract.
①The customer can control the products under construction during the performance of the Group.
①The goods produced during the performance of the Group have irreplaceable uses, and the Group
has the right to collect payments for the cumulative performance of the contract during the entire
contract period.
For performance obligations performed within a certain period of time, the Group recognizes
revenue according to the performance progress during that period. When the performance progress
cannot be reasonably determined, if the cost incurred by the Group is expected to be compensated,
the revenue shall be recognized according to the amount of the cost incurred until the performance
progress can be reasonably determined.
For performance obligations performed at a certain point in time, the Group recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When judging
whether a customer has obtained control of goods or services, the Group considers the following
signs:
①The Group enjoys the current right to receive payment for the goods or services.
①The Group has transferred the legal ownership of the product to the customer.
①The Group has transferred the goods in kind to the customer.
①The Group has transferred the main risks and rewards of the ownership of the product to the
customer.
①The customer has accepted the goods or services.
The Group has transferred goods or services to customers and the right to receive consideration is
listed as contract assets, and contract assets are devalued on the basis of expected credit losses. The
Group's unconditional right to collect consideration from customers is listed as receivables. The
Group’s obligation to transfer goods or services to customers due to the consideration received
from customers is listed as contract liabilities.
(2) Principles of income measurement
① If the contract contains two or more performance obligations, at the beginning of the contract, the
Group will allocate the transaction price to each individual performance obligation based on the
relative proportion of the stand-alone selling price of the goods or services promised by each
individual performance obligation. Revenue is measured at the transaction price of each individual
performance obligation.
①The transaction price is the amount of consideration that the Group expects to be entitled to
receive due to the transfer of goods or services to customers, excluding payments collected on
behalf of third parties and payments expected to be returned to customers. The transaction price
57
confirmed by the Group does not exceed the amount at which the accumulated confirmed income
will most likely not undergo a significant reversal when the relevant uncertainty is eliminated. It is
expected that the money returned to the customer will not be included in the transaction price as a
liability.
①If there is variable consideration in the contract, such as cash discounts and price guarantees in
part of the contract between the Group and its customers, the Group determines the best estimate of
the variable consideration according to the expected value or the most likely amount, but includes
the variable The transaction price of the consideration shall not exceed the amount at which the
accumulated confirmed income is unlikely to be reversed significantly when the relevant
uncertainty is eliminated.
①For the consideration payable to customers, the Group offsets the transaction price from the
consideration payable to customers, and offsets the current income at the time when the relevant
income is recognized and the payment (or promised to pay) the customer consideration is later,
unless the consideration payable is for Obtain other clearly distinguishable products from
customers.
①For sales with a sales return clause, when the customer obtains control of the relevant product, the
Group recognizes revenue based on the amount of consideration expected to be received due to the
transfer of the product to the customer, and the expected return due to the sales return is recognized
as an estimated liability ; At the same time, according to the expected book value of the returned
goods at the time of transfer, the balance after deducting the estimated cost of recovering the goods
(including the value impairment of the returned goods) is recognized as an asset, that is, the return
cost receivable, according to the transferred goods The book value at the time of the transfer,
deducting the net carry-over cost of the aforementioned asset cost. On each balance sheet date, the
Group re-estimates the future sales returns and re-measures the aforementioned assets and
liabilities.
① If there is a significant financing component in the contract, the Group shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
goods or services. Using the discount rate that discounts the nominal amount of the contract
consideration into the current commodity price, the difference between the determined transaction
price and the amount of the consideration promised in the contract is amortized by the actual
interest method during the contract period. On the starting date of the contract, the Group expects
that the time between the customer's acquisition of control of the goods or services and the
customer's payment of the price will not exceed one year, regardless of the significant financing
components in the contract.
①According to contractual agreements, legal provisions, etc., the Group provides quality assurance
for the products sold and the assets built. For guarantee-type quality assurance to assure customers
that the goods sold meet the established standards, the Group conducts accounting treatment in
accordance with "contingent events-estimated liabilities". For the service quality assurance that
58
provides a separate service in order to assure customers that the goods sold meet the established
standards, the Group regards it as a single performance obligation, based on the stand-alone selling
price of the quality assurance of goods and services. In a relative proportion, part of the transaction
price is allocated to service quality assurance, and revenue is recognized when the customer obtains
control of the service. When assessing whether the quality assurance provides a separate service in
addition to ensuring that the products sold meet the established standards, the Group considers
whether the quality assurance is a legal requirement, the quality assurance period, and the nature of
the Group's commitment to perform the tasks.
① When the construction contract between the Group and the customer is changed: ①If the contract
change adds clearly distinguishable construction services and contract prices, and the new contract
price reflects the stand-alone selling price of the new construction services, the Group will The
contract change shall be treated as a separate contract for accounting treatment; ①If the contract
change does not fall into the above-mentioned circumstance ①, and there is a clear distinction
between the construction services that have been transferred and the construction services that have
not been transferred on the date of the contract change, the Group Treat it as the termination of the
original contract, and at the same time, merge the unfulfilled part of the original contract and the
changed part of the contract into a new contract for accounting treatment; ①If the contract change
does not fall into the above situation ①, and the construction service has been transferred on the
date of contract change There is no clear distinction between the construction service and the
untransferred construction service. The Group accounts for the changed part of the contract as a
component of the original contract. The resulting impact on the recognized revenue will be adjusted
on the date of contract change.
(3) Specific methods of revenue recognition
① Revenue recognized on time
The Group's sales of household appliances, electronic components, etc., belong to the performance
obligation performed at a certain point in time.
Recognition conditions for income from domestic sales of goods and overseas direct sales of goods:
The Group has delivered the product to the customer in accordance with the contract and the
customer has received the product, the payment has been recovered or the receipt of payment has
been obtained, and the relevant economic benefits are likely to flow in. The main risks and rewards
have been transferred, and the legal ownership of the goods has been transferred.
Conditions for confirming the income of exported goods: The Group has declared the products for
export according to the contract, obtained the bill of lading, and delivered the goods to the carrier
entrusted by the purchaser. The payment has been recovered or the receipt of payment has been
obtained and relevant economic benefits are likely to flow in. The main risks and rewards of
commodity ownership have been transferred, and the legal ownership of commodities has been
transferred.
①Income confirmed according to the performance progress
59
The Group's business contracts with customers for project construction, online advertising,
operating leases, etc. are performance obligations performed within a certain period of time, and
revenue is recognized according to the progress of the performance.
34. Government Grants
The government grants of the Group are divided into asset-based grants related to and
income-based grants. Asset-based grants refer to the government grants for long-term assets
obtained by the purchase, construction, and other ways. Income-based grants refer to other grants.
If the beneficiaries are not specified in government documents, the Group will make the distinction
according to the aforesaid principle. Beneficiaries which are difficult to categorize shall be
classified as an income-based government grant as a whole.
Current elements of government grants shall be measured based on the amount actually received.
Those shall be measured according to the amount receivable are grants paid according to a fixed
quota standard, or funds that meet the relevant conditions stipulated by the financial support policy
with conclusive evidence at the end of the year and which are expected as the financial support.
Non-monetary elements of the government grants shall be measured at fair value. Those whose fair
value cannot be obtained reliably shall be measured at its nominal amount (RMB1).
Asset-based grants shall be used to offset the carrying value of related assets or presented as
deferred income, and shall, over the life of the related asset, be included in the current profits and
losses by the equal amortization method.
If the related asset is sold, transferred, scrapped, or damaged before the end of its useful life, its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.
Income-based grants that are used to compensate related costs or losses in subsequent periods shall
be deemed as deferred income and shall be included in the current profits and losses during the
period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.
Government grants not related to routine activities shall be included in non-operating income and
expenditure.
The Group obtains interest grants on policy-related concessional loans in two different ways: the
interest subsidy funds are allocated by the government either to the lending bank or directly to the
Group. The respective accounting treatment is carried out as follows:
(1) Where the government allocates the funds to the lending bank, and the bank provides a loan to
the Group at a policy-related preferential interest rate, the actual amount of the loan received is
taken as the entry value, and the borrowing costs are calculated based on the loan principal and the
policy-related preferential interest rate.
60
(2) Where the government allocates the funds directly to the Group, the grants are offset against
borrowing costs.
Where the government grants that the Group has recognized in accounting need to be returned, the
accounting treatment in the current period is carried out as follows:
1) If the book value of an asset is offset on initial recognition, the book value will be adjusted;
2) If there is deferred income, the book balance of the deferred income will be offset, and the excess
will be included in profit or loss in the current period;
3) Under any other circumstances, the grants will be included in profit or loss in the current period.
35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized based on
the difference (temporary difference) between the tax base and book value of the assets and
liabilities. In the case of deductible losses that can be deducted from taxable income in subsequent
years in accordance with the provisions of the tax laws, the corresponding deferred income tax
assets are recognized. In the case of temporary differences arising from the initial recognition of
goodwill, the corresponding deferred income tax liabilities are not recognized. With respect to
temporary differences arising from the initial recognition of an asset or liability in a transaction
which isn’t a business combination and which affects neither accounting profit nor taxable income
(or deductible losses), the corresponding deferred income tax assets and deferred income tax
liabilities are not recognized. On the balance sheet date, the deferred income tax assets and deferred
income tax liabilities are measured at the tax rate applicable to the period during which the assets
are expected to be recovered or the liabilities are expected to be settled.
The Group recognizes deferred income tax assets to the extent of the taxable income which it is
most likely to obtain and which can be deducted from deductible temporary differences,
deductible losses and tax credits.
36. Leasing
(1) Identification of leases
The term "lease" refers to a contract whereby the lessor transfers the right of use regarding the
leased asset(s) to the lessee within a specified time in exchange for consideration. On the
commencement date of the contract, the Group assesses whether the contract is a lease or contains a
lease. If a party to the contract transfers the right allowing the control over the use of one or more
assets that have been identified within a certain period, in exchange for a consideration, such
contract is a lease or includes a lease. In order to determine whether a party to the contract transfers
the right allowing the control over the use of the identified assets for a certain period of time, the
Group assesses whether the customers in the contract are entitled to obtain almost all the economic
benefits arising from the use of the identified assets during the use period, and have the right to
dominate the use of the identified assets during the use period.
If a contract contains multiple single leases at the same time, the Group will split the contract, and
conduct accounting treatment of each single lease respectively. If a contract contains both lease and
61
non-lease parts at the same time, the Group will split the lease and non-lease parts for accounting
treatment.
(2) The Group as lessee
1) Lease recognition
On the commencement date of the lease term, the Group recognizes the right-of-use assets and
lease obligations in respect of the lease. For the recognition and measurement of right-of-use assets
and lease liabilities, please refer to Note IV "25. Right-of-use assets" and "31. Lease liabilities".
2) Lease change
A lease change refers to a change in the scope, consideration, and term of lease outside the original
contract clauses, including the addition or termination of the one or several rights to use lease assets,
and the extension or reduction of the lease term specified in the contract. The effective date of lease
change refers to the date when both parties reach an agreement on lease change.
If the lease changes and the following conditions are met at the same time, the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope or extends the
lease term by increasing the right to use one or more leased assets; b) The increased consideration is
equivalent to the separate price of the expanded lease scope or the extended lease term adjusted
according to the contract conditions.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change,
the Group will allocate the consideration of the changed contract in accordance with the relevant
provisions of the lease standards and re-determine the changed lease term. The revised rate of
discount is used to discount the changed lease payments to remeasure the lease liability. When
calculating the present value of the changed lease payments, the Group uses the interest rate
implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined,
the Group adopts the incremental borrowing rate of the lessee on the effective date of the lease
change as the rate of discount. With regard to the impact of the above-mentioned lease liability
adjustment, the Group conducts accounting treatment according to the following situations: a) The
lessee will correspondingly reduce the book value of the right-of-use assets and include the profit or
loss of the lease terminated in part or whole in the current profit or loss, if the lease change narrows
the scope of lease or shortens the lease term. b) The lessee will correspondingly adjust the book
value of the right-of-use assets, if other lease changes result in the re-measurement of the lease
obligation.
3) Short-term and low-value asset leases
For short-term leases with a lease term not exceeding 12 months and low-value asset leases with
lower value when single leased assets are brand new assets, the Group chooses not to recognize
right-of-use assets and lease liabilities. The Group includes the payments of short-term and
low-value asset leases incurred during each period of the lease term in the profit or loss for the
current period or the cost of relevant assets by the straight-line method.
(3) The Group as lessor
On the basis that (1) the contract assessed is a lease or includes a lease, the Group, as the lessor,
classifies leases into finance leases and operating leases on the lease commencement date.
If a lease substantially transfers virtually all risks and rewards associated with ownership of the
leased asset, the lessor classifies the lease as a finance lease and leases other than finance leases as
operating leases.
The Group usually classifies a lease that falls under any one or more of the following circumstances
62
as a finance lease: a) When the lease term expires, the ownership of the leased asset is transferred to
the lessee; b) The lessee has the option to purchase the leased asset(s). As the agreed purchase price
is low enough compared with the fair value of the leased asset(s) at the time the option is expected
to be exercised, it can be reasonably determined at the inception of the lease that the lessee will
exercise the option; c) Although the ownership of the assets is not transferred, the lease term
accounts for most of the service life of the leased assets; d) On the lease commencement date, the
present value of lease receipts is almost equivalent to the fair value of leased assets; e) The leased
assets are special in nature, and only the lessee can use them without major renovation. The Group
may also classify a lease that falls under any one or more of the following circumstances as a
finance lease: a) If the lessee cancels the lease, losses to the lessor caused by the cancellation will be
borne by the lessee; b) The gains or losses arising from the fluctuation of the fair value of the
residual value of assets belong to the lessee; c) The lessee has the ability to continue leasing until
the next term at a rent far below the market level.
1) Accounting treatment of finance leases
Initial measurement
On the commencement date of the lease term, the Group recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. It recognizes the net
investment in the lease as the entry value of the finance lease, when initially measuring the finance
lease receivable.
The net investment in the lease is the sum of the net value of the unguaranteed residual value and
the lease receivable not received on the commencement date of the lease term at the interest rate
implicit in lease. Lease collection amount refers to the amount that the lessor should collect from
the lessee for transferring the right to use the leased assets during the lease term, including: a) Fixed
payment amount and substantial fixed payment amount that the lessee needs to pay. If there is lease
incentive, deduct the amount related to lease incentive; b) The variable lease payment depending on
the index or ratio, which is determined according to the index or ratio on the commencement date of
the lease term at the initial measurement; c) The exercise price of the purchase option, provided that
it is reasonably determined that the lessee will exercise the option; d) The amount to be paid by the
lessee to exercise the option to terminate the lease, provided that the lease term reflects that the
lessee will exercise the option to terminate the lease; e) The residual value of guarantee provided to
the lessor by the lessee, the party related to the lessee and an independent third party that has the
financial ability to fulfill the guarantee obligation.
Follow-up measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each period in the
lease term. Periodic rate refers to the rate of discount implicit in lease adopted to determine the net
investment in the lease (in the case of sublease, if the interest rate implicit in lease of sublease
cannot be determined, the rate of discount implicit in original lease is adopted (adjusted according
to the initial direct expenses related to sublease)), or the revised rate of discount determined in
accordance with the relevant provisions where the change of the finance lease is not accounted for
as a separate lease and meets the condition that the lease will be classified as a finance lease if the
change became effective on the lease commencement date.
Accounting treatment of lease change
If the lease changes and the following conditions are met at the same time, the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope by increasing
the right to use one or more leased assets; b) The increased consideration is equivalent to the
63
separate price of the expanded lease scope adjusted according to the contract conditions.
If the change of finance lease is not accounted for as a separate lease, and the condition that the
lease will be classified as an operating lease if the change takes effect on the lease commencement
date is met, the Group will account for it as a new lease from the effective date of the lease change,
and take the net lease investment before the effective date of the lease change as the book value of
the leased asset.
2) Accounting treatment of operating leases
Treatment of rent
The Group recognizes lease receipts from operating leases as rental income on a straight-line basis
during each period of the lease term.
Incentives provided
If the Group provides a rent-free period, it allocates the total rentals over the entire lease term
without deducting the rent-free period by the straight-line method, and also recognizes rental
income during the rent-free period. If certain expenses of the lessee are borne, the Group allocates
the balance of rental income over the lease term after such expenses are deducted from the gross
rental income.
Initial direct cost
Initial direct expenses incurred by the Group in connection with operating leases shall be
capitalized to the cost of the leased underlying asset and recorded in the profits and losses of the
current period in stages over the lease term on the same basis of recognition as rental income.
Depreciation
For the fixed assets in the assets under operating lease, the Group adopts the depreciation policy of
similar assets to calculate and distill depreciation. For other assets under operating lease, the Group
amortizes them in a systematic and reasonable manner.
Variable lease payments
Variable lease payments made by the Group in relation to operating leases that are not included in
the lease receivable are included in the current profit or loss when they are actually incurred.
Change of operating leases
If an operating lease changes, the Group will regard it as a new lease for accounting treatment from
the effective date of the change. The advance receipt or the lease receivable related to the lease prior
to the change is recognized as the payment receivable of the new lease.
37. Changes in Main Accounting Policies and Estimates
(1) Changes of accounting policies
The Ministry of Finance released the Interpretation No. 16 of the Accounting Standards for
Business Enterprises on 30 November 2022, which took effect on the same day. The document
stipulates that "accounting processing under initial recognition and exemption is not applicable to
deferred income taxes related to assets and liabilities incurred from a single transaction". The
Company has implemented it since 1 January 2023. For taxable temporary differences and
deductible temporary differences arising from the lease liabilities and right-of-use assets
recognised based on single transactions that comply with the above provision, at the period-begin
64
of the earliest period presented in the financial statement that followed such provision for the first
time, the Company will adjust retained income brought forward in the earliest period presented in
the financial statement and other relevant items of the financial statement based on the figures
cumulatively affected in accordance with such provision and the Accounting Standards for
Business Enterprises No. 18 Income Taxes.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.
V. Taxation
1. Main Taxes and Tax Rate
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at
the tax rate and paid the VAT
by the amount after deducting
the deductible withholding
VAT VAT at current period, of 1%, 3%, 5%, 6%, 9%, 13%
which the VAT applicable to
easy collection won’t belong
to the deductible withholding
VAT.
Paid at 5%: Dongguan Konka, XingDa
HongYe, Xinfeng Microcrystalline, Boluo
Konka Precision, Boluo Konka, Ningbo
Urban Kanghanrui, Jiangsu Konka Smart, Yibin
The circulating tax actually Kangrun, Yibin Kangrun Medical, Yibin
maintenance and Kangrun Environmental Protection. Paid at
paid
construction tax 1%: Jiangxi Konka, Jiangxi High
Transparent Substrate, Jiangkang
(Shanghai) Technology. Paid at 7%: other
subsidiaries.
The circulating tax actually
Education surtax 3%
paid
Local education The circulating tax actually
2%
surtax paid
Enterprise income 25%/ See 2.Tax Preference and Approved
Taxable income Documents for details
tax
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
65
Name of entity Income tax rate
Electronics Technology, Anhui Konka, Anhui
Tongchuang, XingDa HongYe, Wankaida, Jiangxi
Konka, Xinfeng Microcrystalline, Jiangxi High
15%
Transparent Substrate, Boluo Precision,
Chongqing Kangxingrui, Kowin Memory
(Shenzhen), Xiaojia Technology
Hong Kong Konka, Hongdin Trading, Jiali
International, Hongjet, Jiaxin Technology,
16.5%
Hongdin Invest, Konka Mobility, Kowin Memory
(Hong Kong)
Chain Kingdom Memory Technologies 8.25%/16.5%
Konka Europe 15%
Kanghao Technology 22.5%
Konka North America 21%
The Company as the Parent and other subsidiaries 25%/5%
Note: According to regulations of Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Administration of Taxation, resident enterprises without business
establishment or places of legal persons should be tax payment enterprises with the administrative
measures of income tax of “unified computing, level-to-level administration, local prepayment,
liquidation summary, and finance transfer”. It came into force from 1 January 2008. According to
the above methods, the Company’s sales branch companies in each area will hand in the corporate
income taxes in advance from 1 January 2008 and will be final settled uniformly by the Company
at the year-end.
2. Tax Preference and Approved Documents
(1) According to the No 13 announcement in 2022 and No. 6 announcement in 2023 issued by
State Taxation Administration: Notice on the implementation of the inclusive tax reduction and
exemption policy for small and micro enterprises, the annual taxable income of small and
profitable enterprises is not The portion exceeding RMB1 million will be reduced to 25% of the
taxable income, and the corporate income tax will be paid at the rate of 20%; the portion of the
annual taxable income exceeding RMB1 million but not exceeding RMB3 million will be reduced
by 25% Include the taxable income and pay corporate income tax at a rate of 20%.
(2) On 18 October 2022, Anhui Konka, a subsidiary of the Company, obtained the Certificate of
High-Tech Enterprise jointly issued by the Department of Science and Technology of Anhui
Province, the Department of Finance of Anhui Province and the Taxation Bureau of Anhui
Province of the State Administration of Taxation, with the certificate number GR202234002272,
which is valid for three years. In accordance with the relevant tax regulations, Anhui Konka is
entitled to the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
66
preferential tax rate of 15%.
(3) On 4 November 2022, Xinfeng Microcrystalline, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Jiangxi Province, the Department of Finance of Jiangxi Province and the Taxation Bureau of
Jiangxi Province of the State Administration of Taxation, with the certificate number
GR202236000999, which is valid for three years. According to the relevant tax regulations,
Xinfeng Microcrystalline is entitled to the relevant tax incentives for three consecutive years from
2022 to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay
enterprise income tax at a preferential tax rate of 15%.
(4) On 18 October 2022, Anhui Tongchuang, a subsidiary of the Company, obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Anhui Province, the Department of Finance of Anhui Province and the Taxation Bureau of
Anhui Province of the State Administration of Taxation, with the certificate number
GR202234000798, which is valid for three years. In accordance with the relevant tax regulations,
Anhui Tongchuang is entitled to the relevant tax incentives for three consecutive years from 2022
to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay enterprise
income tax at a preferential tax rate of 15%.
(5) On 22 December 2022, Boluo Precision, a subsidiary of the Company, obtained the
"High-tech Enterprise Certificate" jointly issued by Department of Science and Technology of
Guangdong Province, Department of Finance of Guangdong Province and Guangdong Provincial
Tax Service of State Taxation Administration (No. GR202244017658), which will be valid for
three years. According to relevant tax regulations, Boluo Precision enjoys relevant preferential tax
policies for high-tech enterprises for three consecutive years from 2022 to 2024, and pays
enterprise income tax at a reduced rate of 15%.
(6) On 19 December 2022, Electronic Technology, a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202244205867, which is valid for
three years. In accordance with the relevant tax regulations, Electronic Technology is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(7) On 14 September 2020, Jiangxi Konka, the subsidiary of the Company, obtained a high-tech
enterprise certificate jointly issued by Jiangxi Science and Technology Department, Jiangxi
Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR202036000802 and is valid for three years. According to
relevant tax regulations, Jiangxi Konka shall enjoy relevant preferential tax policies for high-tech
enterprises for three consecutive years from September 2020 to September 2023 and pay the
enterprise income tax at a preferential tax rate of 15%.
(8) On 14 September 2020, Jiangxi High Transparent Substrate, the subsidiary of the Company,
obtained a high-tech enterprise certificate jointly issued by Jiangxi Science and Technology
Department, Jiangxi Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the
67
State Administration of Taxation. The certificate number is GR202036000568 and is valid for
three years. According to relevant tax regulations, Jiangxi High Transparent Substrate shall enjoy
relevant preferential tax policies for high-tech enterprises for three consecutive years from
September 2020 to September 2023 and pay the enterprise income tax at a preferential tax rate of
15%.
(9) On 11 December 2020, Wankaida, the subsidiary of this Company obtained the high-tech
enterprise certificate (certificate No.: GR202044201940) jointly issued by Shenzhen Technology
Innovation Committee, Finance Committee of Shenzhen Municipality, Shenzhen Taxation Bureau
of SAT with a valid period of three years. According to related taxation regulations, Wankaida
enjoys related taxation preferential policies as a high-tech enterprise from December 2020 to
December 2023 and pays the enterprise income tax as per the preferential tax rate of 15%.
(10) On 20 December 2021, XingDa HongYe, a subsidiary of the Company, obtained the
"High-tech Enterprise Certificate" jointly issued by Department of Science and Technology of
Guangdong Province, Department of Finance of Guangdong Province and Guangdong Provincial
Tax Service of State Taxation Administration (No. GR202144002737), which will be valid for
three years. According to relevant tax regulations, XingDa HongYe enjoys relevant preferential
tax policies for high-tech enterprises for three consecutive years from 2021 to 2023, and pays
enterprise income tax at a reduced rate of 15%.
(11) On 23 December 2021, Kowin Memory (Shenzhen), a subsidiary of the Company, received
the Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202144206630, which is valid for
three years. In accordance with the relevant tax regulations, Kowin Memory (Shenzhen) is
entitled to the relevant tax incentives for three consecutive years from 2021 to 2023 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
preferential tax rate of 15%.
(12) On 19 December 2022, Xiaojia Technology, a subsidiary of the Company, received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee, Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation, with the certificate number GR202244203274, which is valid for
three years. In accordance with the relevant tax regulations, Xiaojia Technology is entitled to the
relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(13) In accordance with the Notice on Tax Policy Issues Involved in the Further Implementation
of the Western Development Strategy (C.S. [2011] No. 58) and the Announcement on Corporate
Income Tax Issues Involved in the Further Implementation of the Western Development Strategy
(Announcement [2012] No. 12 by the State Taxation Administration), an enterprise established in
the western region who is mainly engaged in an industry specified in the Catalogue of
Encouraged Industries in the Western Region and whose main business income accounts for over
70% of its gross income in the current year, is entitled to a reduced corporate income tax rate of
15%. Chongqing Kangxingrui, a subsidiary of the Company, are eligible for this preferential tax
68
policy.
(14) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of
Finance and the State Administration of Taxation, for the VAT general taxpayers who sell their
self-developed and produced software products, the VAT shall be levied at the rate of 13%, and
then the part that the actual tax burden on their VAT exceeds 3 will be implemented with the
policy of immediate withdrawal. The Company’s subsidiaries, Wankaida Technology, Shenzhen
Kangcheng, Electronics Technology and Anhui Tongchuang all enjoy this preferential policy.
VI. Notes to Major Items in the Consolidated Financial Statements of the Company
Unless otherwise noted, the following annotation project (including the main projects,
annotation of the financial statement of the Company), the period-begin refers to 1 January 2023,
the period-end refers to 30 June 2023, this period refers to the period from 1 January 2023 to 30
June 2023 and the previous period refers to the period from 1 January 2022 to 30 June 2022. The
monetary unit is renminbi.
1. Monetary assets
Item Closing balance Opening balance
Cash on hand 14.78
Bank deposits 6,222,912,818.42 5,473,400,175.52
Other monetary assets 685,425,987.74 514,695,300.41
Total 6,908,338,806.16 5,988,095,490.71
Of which: Total amount
116,037,645.61 137,008,617.40
deposited overseas
Note: The ending balance of other currency assets is mainly margin deposits, financial
supervision account funds and other deposits subject to usage restrictions. Refer to Note VI-67
Assets with restricted ownership or use right for details.
2. Held-for-trading financial assets
Item Closing balance Opening balance
Financial assets at fair value
743,307,489.50
through profit or loss
Including: Investment in debt
instruments
Equity instrument investment 743,307,489.50
Structural deposits
Financial assets designated at
fair value through profit or loss
Including: Investment in debt
instruments
69
Item Closing balance Opening balance
Hybrid instrument investment
Others
Total 743,307,489.50
3. Notes receivable
（1） Classified presentation of notes receivable
Item Closing balance Opening balance
Commercial acceptance draft 40,602,620.96 350,178,404.79
Banker's acceptance 553,363,673.92 709,558,838.75
Total 593,966,294.88 1,059,737,243.54
（2） Notes receivable pledged by the Company at the end of the Reporting Period
Item Amount pledged at the end of the Reporting Period
Banker's acceptance 217,674,323.25
Commercial acceptance draft
Total 217,674,323.25
（3） Notes Receivable which Had Endorsed by the Company or had Discounted and had
not Due on the Balance Sheet Date at the end of the Reporting Period
Amount derecognised at Amount not derecognised at
Item the end of the Reporting the end of the Reporting
Period Period
Banker's acceptance 1,000,963,671.86
Commercial acceptance draft 23,240,096.98
Total 1,000,963,671.86 23,240,096.98
（4） Notes transferred to accounts receivable because drawer of the notes failed to execute
the contract or agreement
No such cases in the Reporting Period.
（5） Listed by withdrawal methods for provision for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set aside
for bad debts by the
single item
70
Provision set aside
for bad debts by 594,811,837.40 100.00 845,542.52 0.14 593,966,294.88
portfolio
Of which: Banker's
553,363,673.92 93.03 553,363,673.92
acceptance
Commercial
41,448,163.48 6.97 845,542.52 2.04 40,602,620.96
acceptance draft
Total 594,811,837.40 100.00 845,542.52 0.14 593,966,294.88
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Provision set aside
for bad debts by the
single item
Provision set aside
for bad debts by 1,067,029,648.07 100.00 7,292,404.53 0.68 1,059,737,243.54
portfolio
Of which: Banker's
acceptance
709,558,838.75 66.50 709,558,838.75
Commercial
acceptance draft
357,470,809.32 33.50 7,292,404.53 2.04 350,178,404.79
Total 1,067,029,648.07 100.00 7,292,404.53 0.68 1,059,737,243.54
1） In the group, notes receivable, for which the provision for expected credit loss was
made according to trade acceptance
Closing balance
Name Provision for bad Provision
Book balance
debts percentage (%)
Within one year 41,448,163.48 845,542.52 2.04
Total 41,448,163.48 845,542.52 2.04
（6） Provision for bad debts for notes receivable withdrawn, collected or reversed during
the Reporting Period
Change in the Reporting Period
Opening Closing
Category Provision Recovery or Charge-off
balance balance
reclassification or write-off
Commercial 707,063.6
7,292,404.53 7,153,925.69 845,542.52
acceptance draft 8
Banker's
acceptance
Total 7,292,404.53 707,063.6 7,153,925.69 845,542.52
71
8
（7） Notes receivable actually written off in the Reporting Period
There was no notes receivable actually written off in the Reporting Period.
4. Accounts receivable
（1） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Accounts
receivable of
expected credit 1,449,419,796.7 38.00 1,325,790,697.15 91.47 123,629,099.56
losses withdrawn 1
individually
Accounts
receivable of
expected credit
losses withdrawn
by portfolio
Of which: Aging
2,365,166,083.3 62.00 400,800,627.33 16.95 1,964,365,455.97
portfolio
0
Subtotal of
2,365,166,083.3 62.00 400,800,627.33 16.95 1,964,365,455.97
portfolio
0
Total 3,814,585,880.0 100.00 1,726,591,324.48 45.26 2,087,994,555.53
1
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
Accounts
receivable of
1,350,460,284.2
expected credit 1,487,466,561.80 40.11 90.79 137,006,277.53
losses withdrawn 7
individually
Accounts
receivable of
expected credit
losses withdrawn
by portfolio
Of which: Aging
portfolio
2,221,448,326.94 59.89 321,719,768.25 14.48 1,899,728,558.69
Subtotal of
portfolio
2,221,448,326.94 59.89 321,719,768.25 14.48 1,899,728,558.69
72
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Proportion
Amount Amount percentage
(%)
(%)
1,672,180,052.5
Total 3,708,914,888.74 100.00 45.09 2,036,734,836.22
2
1) Provision for bad debts of accounts receivable provided individually
Closing balance
Name Provision
Provision for Reasons for the
Book balance percentage
bad debts provision
(%)
Shanghai Huaxin Expected to be
International Group Co., 299,136,676.70 293,153,943.17 98.00% difficult to
Ltd. recover
Hongtu Sanbao
Reorganization by
High-tech Technology 200,000,000.00 160,000,000.00 80.00%
Co., Ltd. agreement
Expected to be
Shenzhen Yaode
Technology Co., Ltd.
148,503,144.96 125,575,215.21 84.56% difficult to
recover
Guangan Ouqishi Expected to be
Electronic Technology 113,140,553.53 110,965,942.46 98.08% difficult to
Co., Ltd. recover
Guangxi BG New Expected to be
Materials Co., Ltd. 83,396,556.37 81,728,625.24 98.00% difficult to
recover
Zhongfu Tiangong Expected to be
Construction Group 71,539,096.65 53,654,322.49 75.00% difficult to
Co., Ltd.
recover
No. 1 Engineering
Company Ltd. of Expected to be
CCCC First Harbor 65,221,300.00 65,221,300.00 100.00% difficult to
Engineering recover
Company Ltd.
Gome
Customization
(Tianjin) Home 59,569,295.02 35,741,577.01 60.00% Higher credit risk
Appliances Co.,
Ltd.
Xingda Hongye (Hk) Expected to be
Limited 51,902,301.95 51,902,301.95 100.00% difficult to
recover
China Energy Power Expected to be
Fuel Co., Ltd. 50,000,000.00 50,000,000.00 100.00% difficult to
recover
Others 307,010,871.53 297,847,469.62 97.02% Expected to be
difficult to
73
Closing balance
Name Provision
Provision for Reasons for the
Book balance percentage
bad debts provision
(%)
recover
Total 1,449,419,796.71 1,325,790,697.15 91.47%
2） Provision for bad debts for accounts receivable made as per portfolio
Closing balance
Aging Provision for bad Provision
Book balance
debts percentage (%)
Within one year 1,664,332,357.05 33,952,378.22 2.04
One to two years 210,579,371.75 21,100,053.08 10.02
Two to three years 111,910,276.13 25,392,441.65 22.69
Three to four years 165,114,817.76 107,126,493.77 64.88
Over four years 213,229,260.61 213,229,260.61 100.00
Total 2,365,166,083.30 400,800,627.33 16.95
This portfolio is recognised based on the aging characteristics of accounts receivable, and the
withdrawal proportion of provision for bad debts is recognised based on the historical loss rate and
forward-looking factors.
（2） Accounts receivable listed by aging portfolio
Aging Closing balance
Within one year 1,685,919,645.47
One to two years 258,939,219.13
Two to three years 268,490,865.00
Over three years 1,601,236,150.41
Three to four years 679,278,480.01
Four to five years 716,006,713.85
Over five years 205,950,956.55
Subtotal 3,814,585,880.01
Less: Provisions for bad
1,726,591,324.48
debts
Total 2,087,994,555.53
（3） Information of provision for bad debts in the Reporting Period
Change in the Reporting Period
Category Opening balance Recovery or
Provision
reclassification
Provision for bad 1,672,180,052.52 59,109,024.45 8,944,070.58
debts of accounts
74
Change in the Reporting Period
Category Opening balance Recovery or
Provision
reclassification
receivable
Total 1,672,180,052.52 59,109,024.45 8,944,070.58
(Continued)
Change in the Reporting Period
Category Decrease for other Closing balance
Charge-off or write-off
reasons
Provision for bad
debts of accounts 1,571,951.15 -5,818,269.24 1,726,591,324.48
receivable
Total 1,571,951.15 -5,818,269.24 1,726,591,324.48
Decreases for other reasons were RMB-5,818,269.24 due to exchange rate changes.
（4） Accounts receivable actually verified during the Reporting Period
Item Amount written off
Accounts receivable written off 1,571,951.15
（5） Top five accounts receivable in the closing balance categorised by debtors
The total amount of receivables with top five ending balance collected by arrears party for the
Reporting Period was RMB1,424,661,269.74, accounting for 37.35% of the total ending balance of
accounts receivable. The total ending balance of provision for bad debts correspondingly
withdrawn was RMB594,613,927.63.
（6） Accounts receivable derecognised due to the transfer of financial assets
There were no accounts receivable derecognised for transfer of financial assets.
（7） Amount of assets and liabilities generated through the transfer of accounts receivable
and continuing involvement
There was no amount of assets and liabilities formed due to the transfer of accounts
receivable and continued involvement in Reporting Period.
5. Accounts receivable financing
Item Closing balance Opening balance
Notes receivable 344,155,903.39 237,187,228.44
Total 344,155,903.39 237,187,228.44
6. Prepayments
（1） Age of prepayments
75
Closing balance Opening balance
Item Amount Proportion Amount Proportion
(%) (%)
Within one
458,666,394.73 88.82 332,218,631.50 85.20
year
One to two
52,391,934.11 10.15 52,945,431.22 13.58
years
Two to three
1,556,755.37 0.30 4,191,405.92 1.07
years
Over three
3,771,408.88 0.73 592,183.75 0.15
years
Total 516,386,493.09 100.00 389,947,652.39 100.00
Note: The amount of prepayments aged over one year at the end of the period is
RMB57,720,098.36, accounting for 11.18% of the total balance of prepayments of the Company,
and consists mainly of payments for goods afloat or unsettled payments.
（2） Top five prepayments in the closing balance categorised by payees
The total amount of prepayments with top five ending balance collected by prepaid party was
RMB345,703,811.55, accounting for 66.95% of the total ending balance of prepayments.
7. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 5,279,505.89 3,878,580.64
Dividends receivable 272,999.43
Other accounts receivable 1,410,423,205.46 1,437,973,265.51
Total 1,415,702,711.35 1,442,124,845.58
7.1 Interest receivable
（1） Classification of interest receivable
Item Closing balance Opening balance
Interest on term deposits 5,279,505.89 3,878,580.64
Total 5,279,505.89 3,878,580.64
（2） Withdrawal of provision for bad debts for interest receivable
The Company did not have impaired interest receivable.
7.2 Dividends receivable
(1) Category of dividends receivable
Item (or investee) Closing balance Opening balance
Chongqing Qingjia Electronics 272,999.43
76
Item (or investee) Closing balance Opening balance
Co., Ltd.
Total 272,999.43
7.3 Other receivables
(1) Classified by account nature
Nature of fund Closing book balance Opening book balance
Deposit and margin 1,510,004,920.83 1,411,807,968.60
Intercourse funds among minority
shareholders in the business 177,858,075.72 176,571,471.89
consolidation not under the same
control and related parties
Energy-saving subsidies receivable 152,399,342.00 152,399,342.00
Others 1,496,581,720.41 1,523,970,760.63
Total 3,336,844,058.96 3,264,749,543.12
(2) Withdrawal of provision for bad debts for other receivables
Phase I Phase II Phase III
Expected credit Expected credit loss
Provision for bad Expected credit loss during the during the whole Total
debts loss for the next 12 whole outstanding outstanding maturity
months maturity (without (with credit
credit impairment) impairment)
Balance as of 1
January 2023 6,475,374.50 382,824,494.22 1,437,476,408.89 1,826,776,277.61
In the Reporting
Period, carrying
amount of other -5,096,229.69 5,096,229.69
receivables on 1
January 2023
-- Transferred to
-5,096,229.69 5,096,229.69
Phase II
-- Transferred to
Phase III
-- Reclassified
under Phase II
-- Reclassified
under Phase I
Provision in the
3,427,101.55 91,765,719.66 1,286,766.29 96,479,587.50
Reporting Period
Reclassification in
the Reporting 5,000.00 5,000.00
Period
Charge-off in the
Reporting Period
Write-off in the
Reporting Period
Other changes 2,006,401.54 1,163,586.85 3,169,988.39
77
Phase I Phase II Phase III
Expected credit Expected credit loss
Provision for bad Expected credit loss during the during the whole Total
debts loss for the next 12 whole outstanding outstanding maturity
months maturity (without (with credit
credit impairment) impairment)
Balance as of 30
6,812,647.90 479,686,443.57 1,439,921,762.03 1,926,420,853.50
June 2023
Note: The first stage is that credit risk has not increased significantly since initial recognition.
For other receivables with an aging portfolio and a low-risk portfolio within one year, the loss
provision is measured according to the expected credit losses in the next 12 months.
The second stage is that credit risk has increased significantly since initial recognition but
credit impairment has not yet occurred. For other receivables with an aging portfolio and a
low-risk portfolio that exceed one year, the loss provision is measured based on the expected
credit losses for the entire duration.
The third stage is the credit impairment after initial confirmation. For other receivables of
credit impairment that have occurred, the loss provision is measured according to the credit losses
that have occurred throughout the duration.
(3) Withdrawing provision for bad debts for other receivables by portfolio
Closing balance
Category Book balance Provision for bad debts
Proportion Withdrawal Carrying value
Amount Amount
(%) proportion (%)
Other
receivables of
expected credit 1,439,921,762.0
1,463,672,741.80 43.86 98.38 23,750,979.77
losses 3
withdrawn
individually
Other
receivables of
provision for
bad debts
withdrawn by
credit risk
characteristic
portfolio:
Aging 1,386,594,236.71 41.56 465,077,601.03 33.54 921,516,635.68
portfolio
Low-risk 486,577,080.45 14.58 21,421,490.44 4.40 465,155,590.01
portfolio
Subtotal of 1,873,171,317.16 56.14 486,499,091.47 25.97 1,386,672,225.69
portfolio
1,926,420,853.5
Total 3,336,844,058.96 100.00 57.73 1,410,423,205.46
0
(Continued)
78
Opening balance
Category Book balance Provision for bad debts
Proportion Withdrawal Carrying value
Amount Amount
(%) proportion (%)
Other receivables
of expected credit 1,461,191,467 1,437,476,408.
44.76 98.38 23,715,058.62
losses withdrawn .51 89
individually
Other receivables
of provision for
bad debts
withdrawn by
credit risk
characteristic
portfolio:
1,342,397,234 372,315,645.7
Aging portfolio 41.12 27.74 970,081,588.53
.31 8
Low-risk 461,160,841.3
14.12 16,984,222.94 3.68 444,176,618.36
portfolio 0
Subtotal of 1,803,558,075 389,299,868.7
55.24 21.59 1,414,258,206.89
portfolio .61 2
3,264,749,543 1,826,776,277.
Total 100.00 55.95 1,437,973,265.51
.12 61
(4) Other receivables listed by aging
Aging Closing balance
Within one year 543,179,086.07
One to two years 277,182,000.17
Two to three years 913,187,173.58
Three to four years 1,158,266,707.88
Four to five years 250,085,099.34
Over five years 194,943,991.92
Subtotal 3,336,844,058.96
Less: Provisions for bad debts 1,926,420,853.50
Total 1,410,423,205.46
(5) Provision for bad debts for other receivables
The amount of provision for bad debts for Reporting Period was RMB96,479,587.50,
increasing RMB3,170,033.27 which was mainly due to exchange rate changes, decreasing
RMB44.88 which was mainly due to loss of control.
(6) Other receivables actually written off for the Reporting Period
There were no other receivables actually written off for the Reporting Period.
(7) Top five other accounts receivable in the closing balance categorised by debtors
The total amount of other receivables with top five ending balance collected by arrears party
79
in the Reporting Period was RMB1,475,353,794.88, accounting for 44.21% of the total ending
balance of other receivables. The total ending balance of provision for bad debts correspondingly
withdrawn was RMB600,453,158.74.
(8) Other accounts receivable derecognised due to the transfer of financial assets
There were no other receivables derecognised due to the transfer of financial assets for the
Reporting Period.
(9) Amount of assets and liabilities generated through the transfer of other accounts
receivable and continuing involvement
There were no assets or liabilities formed due to the transfer and the continued involvement
of other receivables during the Reporting Period.
8. Inventory
（1） Inventory classification
Closing balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 1,504,770,929.78 71,727,933.75 1,433,042,996.03
Semi-finished
130,868,472.14 37,830,224.42 93,038,247.72
products
Commodities in stock 2,961,430,584.10 244,868,061.46 2,716,562,522.64
Commissioned
2,535,888.55 2,535,888.55
products
Contract fulfilment
178,053.10 178,053.10
costs
Development costs 413,385,626.00 413,385,626.00
Total 5,013,169,553.67 354,426,219.63 4,658,743,334.04
(Continued)
Opening balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 1,168,223,234.28 64,695,751.94 1,103,527,482.34
Semi-finished
145,186,803.18 37,339,815.90 107,846,987.28
products
Commodities in stock 3,316,097,782.82 270,664,206.34 3,045,433,576.48
80
Opening balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Commissioned
2,862,799.75 2,862,799.75
products
Contract fulfilment
254,159.33 254,159.33
costs
Development costs 149,842,751.04 149,842,751.04
Total 4,782,467,530.40 372,699,774.18 4,409,767,756.22
（2） Inventory falling price reserves and impairment provision of contract performance
costs
Increase in the Reporting Period
Item Opening balance
Withdrawal Others
Raw materials 64,695,751.94 7,004,127.25
Semi-finished 37,339,815.90
509,216.97
products
Commodities in stock 270,664,206.34 7,761,139.98
Commissioned
products
Contract fulfilment
costs
Development costs
Total 372,699,774.18 15,274,484.20
(Continued)
Decrease in the Reporting Period
Item Closing balance
Write-off Others
Raw materials 1,215,334.13 -1,243,388.69 71,727,933.75
Semi-finished
18,808.45 37,830,224.42
products
Commodities in stock 33,595,757.23 -38,472.37 244,868,061.46
Commissioned
products
Contract fulfilment
costs
Development costs
Total 34,829,899.81 -1,281,861.06 354,426,219.63
Specific basis for determining the realisable net value and reasons for inventory falling price
81
reserves and impairment provision for contract performance costs transferred back or written off
during the Reporting Period:
Reasons for write-off of
Specific basis for withdrawal of
Item inventory falling price reserves
inventory falling price reserves
in the Reporting Period
The realisable net value was lower They have been sold or collected
Raw materials
than the carrying value in the Reporting Period
Semi-finished The realisable net value was lower They have been sold or collected
products than the carrying value in the Reporting Period
The realisable net value was lower They have been sold in the
Commodities in stock
than the carrying value Reporting Period
9. Contract assets
(1) Contract assets
Closing balance
Item Provision for
Book balance Carrying value
impairment
Receivables among settled
items, which are not 441,792.02 9,012.56 432,779.46
unconditional payment
Total 441,792.02 9,012.56 432,779.46
Opening balance
Item Provision for
Book balance Carrying value
impairment
Receivables among settled
items, which are not
unconditional payment
Total
(2) Withdrawal of impairment provision for contractual assets
Provision in Reclassification
Charge-off/Write-off Decrease
the in the
Item in the Reporting for other Reasons
Reporting Reporting
Period reasons
Period Period
Receivables among settled
items, which are not 9,012.56
unconditional payment
Total 9,012.56
10. Non-current assets due within one year
Item Closing balance Opening balance Nature
Long-term receivables due 3,630,000.00 14,630,000.00 Cash deposit
82
within one year
Total 3,630,000.00 14,630,000.00
11. Other current assets
Item Closing balance Opening balance
Principal and interests of entrusted loans to
1,867,956,911.49 1,544,592,633.44
associated enterprises
Prepayments and deductible taxes, and
507,310,047.74 457,991,464.58
refund of tax for export receivable
Deferred expenses 22,893,812.47 17,278,894.58
Costs receivable for returning goods 15,705,912.79 14,214,651.96
Others 4,325,476.35 4,763,581.27
Total 2,418,192,160.84 2,038,841,225.83
12. Long-term receivables
（1） Long-term accounts receivable
Closing balance
Item Provision
Book balance for bad Carrying value
debts
Finance lease payment
Including: Unrealised financing income
Cash deposits of long-term receivables 4,430,400.00 4,430,400.00
Less: Long-term receivable due within one
3,630,000.00 3,630,000.00
year (See Note VI. 10 for details)
Total 800,400.00 800,400.00
(Continued)
Opening balance
Item Provision
Book balance for bad Carrying value
debts
Finance lease payment
Including: Unrealised financing income
Cash deposits of long-term receivables 15,430,400.00 15,430,400.00
Less: Long-term receivable due within one
14,630,000.00 14,630,000.00
year (See Note VI. 10 for details)
Total 800,400.00 800,400.00
83
13. Long-term equity investment
Change in the Reporting Period
Profit or loss of
Investee Opening balance investment Changes in other
Increase in the Decrease in the Cost method to
recognised by comprehensive
investment investment equity method
the equity income
method
Konka Ventures
Development (Shenzhen)
Co., Ltd. (formerly known as
4,963,158.89
"Konka Ventures
Development (Shenzhen)
Co., Ltd.")
Nanjing Zhihuiguang
Information Technology 1,686,591.04
Research Institute Co., Ltd.
Feidi Technology (Shenzhen)
10,591,603.87
Co., Ltd.
Shenzhen Kangyue
32,232,415.88 -54,027.66
Enterprise Co., Ltd.
Foshan Zhujiang Media
Creative Park Culture 2,834,367.04
Development Co., Ltd.
Kangkai Technology Service
209,048.32
(Chengdu) Co., Ltd.
Puchuang Jiakang
3,658,484.71 -894,025.70
Technology Co, Ltd.
Chongqing Qingjia
5,831,185.33 5,831,185.33
Electronics Co., Ltd.
84
Change in the Reporting Period
Profit or loss of
Investee Opening balance investment Changes in other
Increase in the Decrease in the Cost method to
recognised by comprehensive
investment investment equity method
the equity income
method
Shenzhen Jielunte
99,748,594.97 -4,159,623.03
Technology Co., Ltd.
Panxu Intelligence Co., Ltd. 51,392,171.46 -274,477.86
Orient Excellent (Zhuhai)
7,482,864.06 1,101,394.33
Asset Management Co., Ltd.
Dongfang Jiakang No.1
(Zhuhai) Private Equity 483,905,786.35 16,750,995.01 12,807,706.86
Investment Fund (LP)
Tongxiang Wuzhen Kunyu
3,527,761.64
Equity Investment Co., Ltd.
Shenzhen RF-LINK
Technology Co., Ltd.
Anhui Kaikai Shijie
418,721,305.96
E-commerce Co., Ltd.
Kunshan Kangsheng
Investment Development 313,484,693.57 -10,055,178.43
Co., Ltd.
Chutian Dragon Co., Ltd. 523,726,463.18
Shaanxi Silk Road Cloud
13,333,698.78 -781,563.56
Intelligent Tech Co., Ltd.
Shenzhen Kanghongxing
Intelligent Technology Co.,
Ltd.
85
Change in the Reporting Period
Profit or loss of
Investee Opening balance investment Changes in other
Increase in the Decrease in the Cost method to
recognised by comprehensive
investment investment equity method
the equity income
method
Shenzhen Yaode Technology
Co., Ltd.
Wuhan Tianyuan
Environmental Protection 352,295,640.91 -3,659,889.05
Co., Ltd.
Chuzhou Konka Technology
Industry Development Co., 49,658,397.02 -2,909,934.84
Ltd.
Chuzhou Kangjin Health
Industrial Development Co., 275,858,698.37 -2,876,368.35
Ltd.
Nantong Kangjian
Technology Industrial Park
107,310,029.86
Operations and Management
Co., Ltd.
Chuzhou Kangxin Health
Industry Development Co., 183,310,823.25 -1,327,324.27
Ltd.
Dongguan Guankang Yuhong
521,341,722.37
Investment Co., Ltd.
Shandong Econ Technology
1,246,099,855.22
Co., Ltd.
Dongguan Kangjia New 6,951,651.72 186,757.47
Materials Technology Co.,
86
Change in the Reporting Period
Profit or loss of
Investee Opening balance investment Changes in other
Increase in the Decrease in the Cost method to
recognised by comprehensive
investment investment equity method
the equity income
method
Ltd..
Chongqing E2info
1,023,251,062.59 17,264,263.57
Technology Co., Ltd.
Yantai Kangyun Industrial
72,320,476.84 -2,714,568.47
Development Co., Ltd.
E3info (Hainan) Technology
30,708,255.04
Co., Ltd.
Shenzhen Kangjia Jiapin
Intelligent Electrical
5,371,364.87 739,175.43
Apparatus Technology Co.,
Ltd.
Shenzhen KONKA E-display
82,221,081.72 690,558.45
Co., Ltd.
Chongqing Yuanlv Benpao
33,721,573.96
Real Estate Co., Ltd.
Shenzhen Kangpeng Digital
3,411,153.10 -1,124,071.28
Technology Co., Ltd.
Yantai Kangtang
Construction Development 232,597.64
Co., Ltd.
Dongguan Kangzhihui
23,998,624.46 25,519.24
Electronics Co., Ltd.
Sichuan Huayi Jiakang 121,403.90
87
Change in the Reporting Period
Profit or loss of
Investee Opening balance investment Changes in other
Increase in the Decrease in the Cost method to
recognised by comprehensive
investment investment equity method
the equity income
method
Technology Co., Ltd.
Shenzhen Aimijiakang
Technology Co., Ltd.
(formerly: Sichuan 1,585,761.09 -327,859.93
Aimijiakang Technology Co.,
Ltd.)
Beijing Konka Jingyuan
733,832.84
Technology Co., Ltd.
Chongqing Liangshan
Enterprise Management Co., 121,802.33
Ltd.
Shenzhen Kangene
Technology Innovation 967,323.92 58,982.15
Development Co., Ltd.
Shandong Kangfei Intelligent
Electrical Appliances Co., 1,373,981.26 -1,273,205.73
Ltd.
Henan Kangfei Intelligent
Electrical Appliances Co., 1,182,963.46 622,762.16
Ltd.
Guangdong Kangyuan
12,777,082.28 -1,809,061.91
Semiconductor Co., Ltd.
Chongqing Kangyiqing 1,010,683.91 -199,975.02
88
Change in the Reporting Period
Profit or loss of
Investee Opening balance investment Changes in other
Increase in the Decrease in the Cost method to
recognised by comprehensive
investment investment equity method
the equity income
method
Technology Co., Ltd.
Shenzhen Kangying
Semiconductor Technology 13,254,520.44 -6,742,110.44
Co., Ltd.
Wiselite International (HK)
1,641,595.45
Limited
Chongqing Kangjian
Optoelectronics Technology 11,493,032.21 -800,000.00
Co., Ltd.
Anhui Kangta Supply Chain
18,060,000.00 -528,765.53
Management Co., Ltd.
Wuhan Kangtang
Information Technology Co., 26,654,950.30 -958,720.49
Ltd.
Sichuan Chengrui Real
41,423,514.93 -4,691,048.46
Estate Co., Ltd.
Konka Industrial
Development (Wuhan) Co., 43,290,693.00
Ltd.
Hefei KONSEMI Storage
180,146,610.27 -13,033,084.11
Technology Co., Ltd.
Sichuan Hongxinchen Real
54,880,000.00 -807,774.07
Estate Development Co., Ltd.
89
Change in the Reporting Period
Profit or loss of
Investee Opening balance investment Changes in other
Increase in the Decrease in the Cost method to
recognised by comprehensive
investment investment equity method
the equity income
method
6,351,232,955.58 22,582,180.34 54,880,000.00 -28,505,538.53
(Continued)
Change in the Reporting Period
Withdrawal Closing balance
Cash dividends of
Investee Changes in other or profits Closing balance of the provision
impairment Others for impairment
equities declared to be provision
distributed
Reserve
Konka Ventures Development
(Shenzhen) Co., Ltd. (formerly
known as "Konka Ventures 4,963,158.89
Development (Shenzhen) Co.,
Ltd.")
Nanjing Zhihuiguang
Information Technology 1,686,591.04
Research Institute Co., Ltd.
Feidi Technology (Shenzhen)
10,591,603.87
Co., Ltd.
Shenzhen Kangyue Enterprise
32,178,388.22
Co., Ltd.
Foshan Zhujiang Media 2,834,367.04
Creative Park Culture
90
Change in the Reporting Period
Withdrawal Closing balance
Cash dividends of
Investee Changes in other or profits Closing balance of the provision
impairment Others for impairment
equities declared to be provision
distributed
Reserve
Development Co., Ltd.
Kangkai Technology Service
209,048.32
(Chengdu) Co., Ltd.
Puchuang Jiakang Technology
1,000,000.00 1,764,459.01
Co, Ltd.
Chongqing Qingjia Electronics
Co., Ltd.
Shenzhen Jielunte Technology
95,588,971.94
Co., Ltd.
Panxu Intelligence Co., Ltd. 51,117,693.60
Orient Excellent (Zhuhai)
8,584,258.39
Asset Management Co., Ltd.
Dongfang Jiakang No.1
(Zhuhai) Private Equity 479,962,498.20
Investment Fund (LP)
Tongxiang Wuzhen Kunyu
3,527,761.64
Equity Investment Co., Ltd.
Shenzhen RF-LINK
85,656,027.35
Technology Co., Ltd.
Anhui Kaikai Shijie
418,721,305.96
E-commerce Co., Ltd.
Kunshan Kangsheng 29,400,000.00 274,029,515.14
91
Change in the Reporting Period
Withdrawal Closing balance
Cash dividends of
Investee Changes in other or profits Closing balance of the provision
impairment Others for impairment
equities declared to be provision
distributed
Reserve
Investment Development Co.,
Ltd.
Chutian Dragon Co., Ltd. -523,726,463.18
Shaanxi Silk Road Cloud
12,552,135.22
Intelligent Tech Co., Ltd.
Shenzhen Kanghongxing
Intelligent Technology Co., 12,660,222.73
Ltd.
Shenzhen Yaode Technology
214,559,469.35
Co., Ltd.
Wuhan Tianyuan
Environmental Protection Co., 90,301,655.75 3,078,000.00 435,859,407.61
Ltd.
Chuzhou Konka Technology
Industry Development Co., 46,748,462.18
Ltd.
Chuzhou Kangjin Health
Industrial Development Co., 272,982,330.02
Ltd.
Nantong Kangjian Technology
Industrial Park Operations and 107,310,029.86
Management Co., Ltd.
Chuzhou Kangxin Health 181,983,498.98
92
Change in the Reporting Period
Withdrawal Closing balance
Cash dividends of
Investee Changes in other or profits Closing balance of the provision
impairment Others for impairment
equities declared to be provision
distributed
Reserve
Industry Development Co.,
Ltd.
Dongguan Guankang Yuhong
521,341,722.37
Investment Co., Ltd.
Shandong Econ Technology
1,246,099,855.22
Co., Ltd.
Dongguan Kangjia New
Materials Technology Co., 7,138,409.19
Ltd..
Chongqing E2info Technology
1,040,515,326.16
Co., Ltd.
Yantai Kangyun Industrial
69,605,908.37
Development Co., Ltd.
E3info (Hainan) Technology
30,708,255.04
Co., Ltd.
Shenzhen Kangjia Jiapin
Intelligent Electrical Apparatus 6,110,540.30
Technology Co., Ltd.
Shenzhen KONKA E-display
82,911,640.17
Co., Ltd.
Chongqing Yuanlv Benpao
33,721,573.96
Real Estate Co., Ltd.
Shenzhen Kangpeng Digital 2,287,081.82
93
Change in the Reporting Period
Withdrawal Closing balance
Cash dividends of
Investee Changes in other or profits Closing balance of the provision
impairment Others for impairment
equities declared to be provision
distributed
Reserve
Technology Co., Ltd.
Yantai Kangtang Construction
232,597.64
Development Co., Ltd.
Dongguan Kangzhihui
24,024,143.70
Electronics Co., Ltd.
Sichuan Huayi Jiakang
121,403.90
Technology Co., Ltd.
Shenzhen Aimijiakang
Technology Co., Ltd.
(formerly: Sichuan 1,257,901.16
Aimijiakang Technology Co.,
Ltd.)
Beijing Konka Jingyuan
733,832.84
Technology Co., Ltd.
Chongqing Liangshan
Enterprise Management Co., 121,802.33
Ltd.
Shenzhen Kangene Technology
Innovation Development Co., 1,026,306.07
Ltd.
Shandong Kangfei Intelligent
100,775.53
Electrical Appliances Co., Ltd.
Henan Kangfei Intelligent 1,805,725.62
94
Change in the Reporting Period
Withdrawal Closing balance
Cash dividends of
Investee Changes in other or profits Closing balance of the provision
impairment Others for impairment
equities declared to be provision
distributed
Reserve
Electrical Appliances Co., Ltd.
Guangdong Kangyuan
10,968,020.37
Semiconductor Co., Ltd.
Chongqing Kangyiqing
810,708.89
Technology Co., Ltd.
Shenzhen Kangying
Semiconductor Technology 6,512,410.00
Co., Ltd.
Wiselite International (HK)
1,641,595.45
Limited
Chongqing Kangjian
Optoelectronics Technology 10,693,032.21
Co., Ltd.
Anhui Kangta Supply Chain
17,531,234.47
Management Co., Ltd.
Wuhan Kangtang Information
25,696,229.81
Technology Co., Ltd.
Sichuan Chengrui Real Estate
36,732,466.47
Co., Ltd.
Konka Industrial Development
43,290,693.00
(Wuhan) Co., Ltd.
Hefei KONSEMI Storage
167,113,526.16
Technology Co., Ltd.
95
Change in the Reporting Period
Withdrawal Closing balance
Cash dividends of
Investee Changes in other or profits Closing balance of the provision
impairment Others for impairment
equities declared to be provision
distributed
Reserve
Sichuan Hongxinchen Real
54,072,225.93
Estate Development Co., Ltd.
Total 90,301,655.75 33,478,000.00 -523,726,463.18 5,888,122,429.28 312,875,719.43
14. Other equity instrument investments
（1） Other equity instrument investments
Item Closing balance Opening balance
Shenzhen Tianyilian Science & Technology Co., Ltd.
Shenzhen Adopt Network Co., Ltd.
Beijing Aowei Mutual Entertainment Technology Co., Ltd. 5,901,121.80 5,901,121.80
Feihong Electronics Co., Ltd.
ZAEFI
Shenzhen Chuangce Investment Development Co., Ltd.
Shanlian Information Technology Engineering Centre 1,860,809.20 1,860,809.20
Shenzhen CIU Science & Technology Co., Ltd. 953,000.00 953,000.00
Shenzhen Digital TV National Engineering Laboratory Co., Ltd. 7,726,405.16 7,726,405.16
Shanghai National Engineering Research Centre of Digital TV Co., Ltd. 2,400,000.00 2,400,000.00
BOHUA UHD 5,000,001.00 5,000,001.00
Total 23,841,337.16 23,841,337.16
96
（2） Investment in non-trading equity instruments in the Reporting Period
Reason for other
Amount of other Reason for assigning to
Dividend comprehensive
comprehensive measure in fair value of
income Accumulati Accumulative income
Item income which changes included
recognised ve gains losses transferred to
transferred to other comprehensive
this year retained
retained earnings income
earnings
Shenzhen Tianyilian Science & Long-term holding based on
4,800,000.00
Technology Co., Ltd.
strategic purpose
Long-term holding based on
Shenzhen Adopt Network Co., Ltd. 5,750,000.00
strategic purpose
Beijing Aowei Mutual Entertainment Long-term holding based on
98,878.20
Technology Co., Ltd.
strategic purpose
Long-term holding based on
Feihong Electronics Co., Ltd. 1,300,000.00
strategic purpose
Long-term holding based on
ZAEFI 100,000.00
strategic purpose
Shenzhen Chuangce Investment Long-term holding based on
485,000.00
Development Co., Ltd.
strategic purpose
Shanlian Information Technology Long-term holding based on
3,139,190.80
Engineering Centre
strategic purpose
Shenzhen CIU Science & Long-term holding based on
200,000.00
Technology Co., Ltd.
strategic purpose
97
Reason for other
Amount of other Reason for assigning to
Dividend comprehensive
comprehensive measure in fair value of
income Accumulati Accumulative income
Item income which changes included
recognised ve gains losses transferred to
transferred to other comprehensive
this year retained
retained earnings income
earnings
Shenzhen Digital TV National Long-term holding based on
1,273,594.84
Engineering Laboratory Co., Ltd.
strategic purpose
Shanghai National Engineering
Long-term holding based on
Research Centre of Digital TV Co.,
Ltd. strategic purpose
Long-term holding based on
BOHUA UHD
strategic purpose
Total 17,146,663.84
98
15. Other non-current financial assets
Item Closing balance Opening balance
China Asset Management-Jiayi Overseas Designated
200,732,067.00 200,732,067.00
Plan
Tianjin Huacheng Property Development Co., Ltd. 1,000,000.00 1,000,000.00
Tianjin Property No. 8 Enterprise Management
28,540,777.26 28,540,777.26
Partnership (Limited Partnership)
CCB Trust-Cai Die No. 6 Property Rights Trust
66,080,293.70 66,080,293.70
Scheme
Daye Trust Co., Ltd. 100,000,000.00 100,000,000.00
Yibin OCT Sanjiang Properties Co., Ltd. 179,805,828.50 171,141,605.35
Yili Ecological Restoration Co., Ltd. 34,489,731.24 41,812,139.03
Kunshan Xinjia Emerging Industry Equity Investment
232,628,605.68 233,834,173.06
Fund Partnership (Limited Partnership)
Tongxiang Wuzhen Jiayu Digital Economy Industry
200,810,700.41 195,312,419.69
Equity Investment Partnership (Limited Partnership)
Yibin Kanghui Electronic Information Industry Equity
60,880,333.86 67,706,235.45
Investment Partnership (Limited Partnership)
Chuzhou Jiachen Information Technology Consulting
59,700,013.59 59,700,013.59
Service Partnership (Limited Partnership)
Yancheng Kangyan Information Industry Investment
167,287,646.77 167,230,693.52
Partnership (Limited Partnership)
Chongqing Kangxin Equity Investment Fund Limited
146,077,069.28 146,160,043.51
Partnership (Limited Partnership)
Shenzhen Kanghuijia Technology Co., Ltd. 10,137.30 10,137.30
Subtotal of equity investments 1,478,043,204.59 1,479,260,598.46
Chuzhou Huike Smart Household Appliances Industry
101,032,880.10 626,244,139.25
Investment Partnership (Limited Partnership)
Ningbo Yuanqing No. 9 Investment Partnership 148,855,198.11 148,855,198.11
Shenzhen Beihu Technology Partnership (Limited
58,000,000.00 58,000,000.00
Partnership)
Shanxi Kangmengrong Enterprise Management
9,163,411.30 9,163,411.30
Consulting Partnership (Limited Partnership)
Nanjing Kangfeng Dejia Asset Management
100,000,000.00 100,000,000.00
Partnership (Limited Partnership)
Shenzhen Gaohong Enterprise Consulting
103,690,684.93 100,000,000.00
Management Partnership (Limited Partnership)
Shenzhen Zitang No.1 Enterprise Consulting
99,000,000.00 100,386,000.00
Management Partnership (Limited Partnership)
Xi'an Bihuijia Enterprise Management Consulting
15,785,194.99 17,752,926.20
Partnership (Limited Partnership)
Subtotal of debt investments 635,527,369.43 1,160,401,674.86
99
Item Closing balance Opening balance
Total 2,113,570,574.02 2,639,662,273.32
16. Investment property
（1） Investment properties measured at cost
Item Land use right Properties and buildings Total
I. Original carrying
value
1. Opening balance 46,121,506.92 873,265,339.70 919,386,846.62
2. Increase in the
44,819,750.13 593,074,164.96 637,893,915.09
Reporting Period
(1) External purchase
(2) Fixed
assets\construction in
44,819,750.13 593,074,164.96 637,893,915.09
progress\transfer of
intangible assets
3. Decrease in the
15,171.30 15,171.30
Reporting Period
(1) Disposal 15,171.30 15,171.30
(2) Other transfer out
4. Closing balance 90,941,257.05 1,466,324,333.36 1,557,265,590.41
II. The accumulative
depreciation and
accumulative
amortisation
1. Opening balance 8,602,890.38 108,376,111.64 116,979,002.02
2. Increase in the
11,759,541.86 16,329,248.90 28,088,790.76
Reporting Period
(1) Provision or
11,759,541.86 16,329,248.90 28,088,790.76
amortisation
3. Decrease in the
3,897.13 3,897.13
Reporting Period
(1) Disposal 3,897.13 3,897.13
(2) Other transfer out
4. Closing balance 20,362,432.24 124,701,463.41 145,063,895.65
III. Provision for
impairment
1. Opening balance
100
Item Land use right Properties and buildings Total
2. Increase in the
Reporting Period
(1) Provision
3. Decrease in the
Reporting Period
(1) Disposal
(2) Other transfer out
4. Closing balance
IV. Carrying value
1. Closing carrying
70,578,824.81 1,341,622,869.95 1,412,201,694.76
value
2. Opening carrying
37,518,616.54 764,889,228.06 802,407,844.60
value
(2) Investment properties measured at fair value
There was no investment properties measured at fair value of the Company.
(3) Investment properties in the process of title certificate handling
Reason that the certificate
Item Carrying value
of title was not completed
Settlement of the project is
Konka Standard Electronic
underway, and the certificate
Product Plants Project in 262,318,214.53
can be handled only after the
Sunning
settlement
Total 262,318,214.53
(4) Investment properties with restricted ownership or use rights
Item Carrying value Reasons for the restriction
Tower 1 of Konka Guangming
101,798,700.19 As collateral for loan
Technology Center (Phase I)
Total 101,798,700.19
17. Fixed assets
Item Closing carrying value Opening carrying value
Fixed assets 4,021,128,223.39 4,114,029,693.38
Liquidation of fixed assets
Total 4,021,128,223.39 4,114,029,693.38
101
（1） Fixed assets
Properties and Machinery and Electronic Transport
Item Other equipment Total
buildings equipment equipment equipment
I. Original carrying
value
1. Opening balance 2,860,293,710.15 3,103,345,131.12 302,309,738.49 59,879,173.09 186,025,451.11 6,511,853,203.96
2. Increased amount of
17,093,650.47 78,602,521.68 13,399,791.51 696,486.57 2,345,289.89 112,137,740.12
the period
(1) Purchase 737,833.56 70,361,885.25 10,413,390.40 696,486.57 2,320,688.11 84,530,283.89
(2) Transfer-in of 16,355,816.91 8,229,911.50 2,895,079.35 24,601.78 27,505,409.54
construction in progress
(3) Increase through
consolidation
(4) Other transfer-in 10,724.93 91,321.76 102,046.69
3. Decreased amount of
12,174,081.35 23,220,251.48 13,061,482.92 1,695,052.22 1,293,362.43 51,444,230.40
the period
(1) Disposal or
78,890.76 22,971,062.12 13,061,482.92 1,378,087.77 1,029,221.71 38,518,745.28
write-off
(2) Decrease for loss of
controlling right
(3) Other decreases 12,095,190.59 249,189.36 316,964.45 264,140.72 12,925,485.12
4. Ending balance 2,865,213,279.27 3,158,727,401.32 302,648,047.08 58,880,607.44 187,077,378.57 6,572,546,713.68
II. Accumulated
depreciation
1. Opening balance 673,384,702.71 1,258,513,887.86 201,688,344.85 42,829,692.30 114,585,141.99 2,291,001,769.71
2. Increased amount of 41,189,192.38 125,682,629.90 12,632,971.50 2,271,500.06 7,437,906.27 189,214,200.11
102
Properties and Machinery and Electronic Transport
Item Other equipment Total
buildings equipment equipment equipment
the period
(1) Provision 41,189,192.38 125,682,629.90 12,605,623.17 2,271,060.28 7,437,906.27 189,186,412.00
(2) Increase through
consolidation
(3) Other increase 27,348.33 439.78 27,788.11
3. Decreased amount of
21,741.20 16,614,229.86 11,811,369.32 1,575,541.36 1,094,457.84 31,117,339.58
the period
(1) Disposal or
21,741.20 16,339,565.32 11,811,369.32 1,357,208.24 921,706.47 30,451,590.55
write-off
(2) Decrease for loss of
controlling right
(3) Other decreases 274,664.54 218,333.12 172,751.37 665,749.03
4. Ending balance 714,552,153.89 1,367,582,287.90 202,509,947.03 43,525,651.00 120,928,590.42 2,449,098,630.24
III. Provision for
impairment
1. Opening balance 23,987,527.51 75,533,448.92 1,351,990.45 827,482.72 5,121,291.27 106,821,740.87
2. Increased amount of 223.01 19,728.84 19,951.85
the period
(1) Provision 223.01 19,728.84 19,951.85
3. Decreased amount of
4,473,816.19 36,578.16 182.58 11,255.74 4,521,832.67
the period
(1) Disposal or
4,473,816.19 16,849.32 182.58 11,255.74 4,502,103.83
write-off
(2) Other decrease 19,728.84 19,728.84
103
Properties and Machinery and Electronic Transport
Item Other equipment Total
buildings equipment equipment equipment
4. Ending balance 23,987,527.51 71,059,855.74 1,315,412.29 827,300.14 5,129,764.37 102,319,860.05
IV. Carrying value
1. Ending carrying
2,126,673,597.87 1,720,085,257.68 98,822,687.76 14,527,656.30 61,019,023.78 4,021,128,223.39
value
2. Opening carrying
2,162,921,479.93 1,769,297,794.34 99,269,403.19 16,221,998.07 66,319,017.85 4,114,029,693.38
value
104
（2） List of temporarily idle fixed assets
Original Accumulated Provision for
Item Carrying value
carrying value depreciation impairment
Machinery and
824,823,845.49 372,859,046.34 58,181,788.74 393,783,010.41
equipment
Electronic
10,365,732.04 8,155,615.63 57,874.03 2,152,242.38
equipment
Transport
3,673,189.64 3,365,811.65 307,377.99
equipment
Properties and
266,352,257.20 135,135,305.00 7,899,900.07 123,317,052.13
buildings
Other equipment 1,799,875.89 901,797.73 46,523.56 851,554.60
Total 1,107,014,900.26 520,417,576.35 66,186,086.40 520,411,237.51
（3） Fixed assets leased out through operating leases
Item Closing carrying value
Electronic equipment 246,282.58
Machinery and equipment 25,553,563.94
Other equipment 442,665.13
Transport equipment 299.03
Total 26,242,810.68
（4） Details of fixed assets failed to accomplish certification of property
Reason that
Original carrying Accumulated Provision for Net book the certificate
Item
value depreciation impairment value of title was not
completed
576,367,3
Ankang's plants 602,674,461.92 26,307,073.35 Being handled
88.57
Bokang's
phase II plants
on the second 31,097,02
33,616,122.84 2,519,102.25 Being handled
0.59
and third floors
for printed
boards
Jingyuan
3,542,013
Building 7,700,000.00 4,157,986.63 Being handled
.37
property
Yikang
35,396,59
Building 76,610,752.33 41,214,156.47 Being handled
5.86
property
105
Reason that
Original carrying Accumulated Provision for Net book the certificate
Item
value depreciation impairment value of title was not
completed
Buildings and
constructions of 448,371,6
453,857,134.27 5,485,450.94 Being handled
83.33
Chongqing
Konka
1,094,774
Total 1,174,458,471.36 79,683,769.64
,701.72
(5) Fixed assets with restricted ownership or use right
Item Closing carrying value Reasons for the restriction
Housing and buildings of Anhui
142,712,112.61 Mortgage loan
Tongchuang
Machinery equipment of Jiangxi
13,378,706.66 Finance lease mortgage
Konka
Machinery equipment of Xinfeng
36,487,041.12 Finance lease mortgage
Microcrystalline
Housing and buildings of Frestec
83,749,203.78 Finance lease mortgage
Refrigeration
Buildings of Konka Group 73,963,459.56 Mortgage loan
Housing and buildings of XingDa Mortgage loan, finance lease
36,142,004.46
HongYe mortgage
Anhui Konka's buildings 607,509,925.08 Mortgage loan
Machinery equipment of Xingda
9,487,826.36 Finance lease mortgage
Hongye
Machinery equipment of Boluo
10,040,946.29 Finance lease mortgage
Konka Precision
Housing and buildings of Jiangxi As collateral for guarantee when as
2,733,931.24
Konka shareholder
Housing and buildings of Jiangsu
36,798,337.13 Mortgage loan
Konka Intelligent
Housing and buildings of Chongqing
340,452,555.35 Mortgage loan
Konka
Total 1,393,456,049.65
106
18. Construction in progress
（1） Construction in progress
Closing balance Opening balance
Item Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Chongqing Konka
Semiconductor 646,716.96 646,716.96 197,885,487.81 197,885,487.81
Optoelectronics Park Project
Guangming Project 466,051,847.89 466,051,847.89
Jiangxi High-permeability
246,576,748.57 20,063,348.57 226,513,400.00 246,576,748.57 20,068,730.37 226,508,018.20
Crystalization Kiln
Dongguan Konka New
426,653,039.42 426,653,039.42 398,018,288.30 398,018,288.30
Industrial Park
Construction of Suining
Electronic Industrial Park 229,461,268.53 229,461,268.53 221,981,375.38 221,981,375.38
Workshops
Frestec Smart Home
187,025,745.30 187,025,745.30 113,146,458.03 113,146,458.03
Appliances Park
Other projects 468,950,870.45 43,191,700.46 425,759,169.99 410,734,273.00 43,964,371.54 366,769,901.46
Total 1,559,314,389.23 63,255,049.03 1,496,059,340.20 2,054,394,478.98 64,033,101.91 1,990,361,377.07
（2） Changes in major projects under construction in the Reporting Period
Name of item Opening balance Increase in the Decrease in the Reporting Period Closing balance
107
Reporting Period Transferred to
long-term assets Other decreases
Chongqing Konka Semiconductor
197,885,487.81 1,298,004.56 198,536,775.41 646,716.96
Optoelectronics Park Project
Guangming Project 466,051,847.89 6,504,273.24 472,556,121.13
Jiangxi High-permeability
246,576,748.57 246,576,748.57
Crystalization Kiln
Dongguan Konka New Industrial Park 398,018,288.30 28,634,751.12 426,653,039.42
Construction of Suining Electronic
221,981,375.38 7,585,264.27 105,371.12 229,461,268.53
Industrial Park Workshops
Frestec Smart Home Appliances Park 113,146,458.03 73,879,287.27 187,025,745.30
Total 1,643,660,205.98 117,901,580.46 671,092,896.54 105,371.12 1,090,363,518.78
(Continued)
Including:
Proportion
Accumulated Amount of Capitalisation
estimated of the Engineering
Estimated number amount of interest rate of the
Name of item project Source of fund
(RMB100 million) Schedule (%) interest capitalisation in interests of the
accumulative
capitalisation the Reporting period (%)
input (%)
Period
Chongqing Konka
Semiconductor Self-owned fund
7.57 95.00 95.00 32,272.52 32,272.52
Optoelectronics Park and bank financing
Project
Self-owned fund
Guangming Project 5.2 100.00 100.00 24,439,935.19 2,111,837.68 1.43
and project loans
108
Including:
Proportion
Accumulated Amount of Capitalisation
estimated of the Engineering
Estimated number amount of interest rate of the
Name of item project Source of fund
(RMB100 million) Schedule (%) interest capitalisation in interests of the
accumulative
capitalisation the Reporting period (%)
input (%)
Period
Jiangxi
Self-owned fund
High-permeability 3.4 72.52 72.52 32,249,994.16
and bank financing
Crystalization Kiln
Dongguan Konka New Self-owned fund
5.97 71.47 71.47 22,693,029.73 7,426,357.70 4.23
Industrial Park and bank financing
Construction of
Suining Electronic
7.34 59.74 59.74 Self-owned fund
Industrial Park
Workshops
Frestec Smart Home Self-owned fund
4.88 38.32 38.32 308,750.00 226,250.00 4.50
Appliances Park and bank financing
Total 79,723,981.60 9,796,717.90
109
19. Right-of-use assets
Properties and Electronic Transport
Item Total
buildings equipment equipment
I. Original carrying
value
1. Opening balance 105,879,545.84 243,493.34 106,123,039.18
2. Increase in the
Reporting Period
1,993,337.34 1,993,337.34
(1) Rent 1,771,436.60 1,771,436.60
(2) Others 221,900.74 221,900.74
3. Decrease in the
Reporting Period
16,937,812.60 16,937,812.60
(1) Decrease for loss of
controlling right
(2) Others 16,937,812.60 16,937,812.60
4. Closing balance 90,935,070.58 243,493.34 91,178,563.92
II. Accumulated
depreciation
1. Opening balance 56,047,009.73 56,190.77 56,103,200.50
2. Increase in the
Reporting Period
11,720,071.18 28,095.39 11,748,166.57
(1) Provision 11,720,071.18 28,095.39 11,748,166.57
(2) Others
3. Decrease in the
Reporting Period
10,160,601.40 10,160,601.40
(1) Decrease for loss of
controlling right
(2) Others 10,160,601.40 10,160,601.40
4. Closing balance 57,606,479.51 84,286.16 57,690,765.67
III. Provision for
impairment
1. Opening balance
2. Increase in the
Reporting Period
(1) Provision
3. Decrease in the
Reporting Period
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying
value
33,328,591.07 159,207.18 33,487,798.25
2. Opening carrying 49,832,536.11 187,302.57 50,019,838.68
110
Properties and Electronic Transport
Item Total
buildings equipment equipment
value
111
20. Intangible assets
（1） List of intangible assets
Intellectual property
Item Land use right Right to use Total
Trademark Patent and Franchise
software and Subtotal
right know-how rights
others
I. Original
carrying
value
1. Opening
920,331,792.11 72,197,456.33 116,715,865.54 168,553,796.14 166,134,944.42 523,602,062.43 1,443,933,854.54
balance
2. Increased
amount of the 12,707,974.60 3,923,438.71 16,631,413.31 16,631,413.31
period
(1) Purchase 3,923,438.71 3,923,438.71 3,923,438.71
(2)
Transfer-in of
12,707,974.60 12,707,974.60 12,707,974.60
construction
in progress
(3) Transfer
from R&D
(4) Increase
through
consolidation
(5) Other
reasons
3. Decreased 44,819,750.13 18,240.10 162,365.17 180,605.27 45,000,355.40
112
Intellectual property
Item Land use right Right to use Total
Trademark Patent and Franchise
software and Subtotal
right know-how rights
others
amount of the
period
(1) Disposal
(2) Decrease
for loss of
controlling
right
(3) Decrease
for other 44,819,750.13 18,240.10 162,365.17 180,605.27 45,000,355.40
reasons
4. Ending
875,512,041.98 72,197,456.33 116,697,625.44 181,261,770.74 169,896,017.96 540,052,870.47 1,415,564,912.45
balance
II.
Accumulated
amortisation
1. Opening
99,146,643.20 19,252,110.49 71,318,420.60 1,560,683.29 90,172,768.07 182,303,982.45 281,450,625.65
balance
2. Increased
amount of the 11,057,240.93 2,081,758.04 5,007,931.48 7,981,651.40 15,071,340.92 26,128,581.85
period
(1) Provision 11,057,240.93 2,081,758.04 5,007,931.48 7,981,651.40 15,071,340.92 26,128,581.85
(2) Other
increases
3. Decreased 10,826,630.74 18,240.10 30,949.24 49,189.34 10,875,820.08
113
Intellectual property
Item Land use right Right to use Total
Trademark Patent and Franchise
software and Subtotal
right know-how rights
others
amount of the
period
(1) Disposal
(2) Decrease
for loss of
controlling
right
(3) Decrease
for other 10,826,630.74 18,240.10 30,949.24 49,189.34 10,875,820.08
reasons
4. Ending
99,377,253.39 21,333,868.53 71,300,180.50 6,568,614.77 98,123,470.23 197,326,134.03 296,703,387.42
balance
III. Provision
for
impairment
1. Opening
564,705.88 44,943,521.62 235,294.12 45,743,521.62 45,743,521.62
balance
2. Increased
amount of the
period
(1) Provision
(2) Increase
in business
combinations
114
Intellectual property
Item Land use right Right to use Total
Trademark Patent and Franchise
software and Subtotal
right know-how rights
others
3. Decreased
amount of the
period
(1) Disposal
(2) Decrease
for loss of
controlling
right
4. Ending
564,705.88 44,943,521.62 235,294.12 45,743,521.62 45,743,521.62
balance
IV. Carrying
value
1. Ending
carrying 776,134,788.59 50,298,881.92 453,923.32 174,693,155.97 71,537,253.61 296,983,214.82 1,073,118,003.41
value
2. Opening
carrying 821,185,148.91 52,380,639.96 453,923.32 166,993,112.85 75,726,882.23 295,554,558.36 1,116,739,707.27
value
115
（2） Land use right with certificate of title uncompleted
Reason that the certificate
Item Carrying value
of title was not completed
Land use right of the subsidiary
4,961,301.96 Being handled
Nano-Grystallization
（3） Significant intangible assets
Remaining amortisation
Item Closing carrying value
period (year)
Land usage right of Dongguan Konka 187,867,124.67 46.17
Land usage right of Frestec Smart Home
Technology 91,233,386.84 47.25
Land usage right of Frestec Refrigeration 64,815,067.18 33.25
Concessions of Yibin Konka 175,146,657.02 17.33
Land use right of Konka Huanjia 62,498,176.16 46.00
（4） Intangible assets with restricted ownership or using right
Item Closing carrying value Reasons for the restriction
Land use right of Dongguan Konka 187,867,124.67 Mortgage loan
Land use right of Anhui Konka 54,473,796.00 Mortgage loan
Land usage right of Frestec Refrigeration 64,815,067.18 As collateral for finance lease
Land usage right of Frestec Smart Home Mortgage loan
Technology 91,233,386.84
Land use right of Konka Tongchuang 17,700,070.99 Mortgage loan
Land use right of Jiangsu Konka 13,982,363.30 Mortgage loan
Land usage right of XingDa HongYe 13,346,838.13 Mortgage loan
Land usage right of Jiangxi Konka Original shareholder guarantee
12,255,316.97 mortgage
Land use right of Konka Guangming 5,344,167.42 Mortgage loan
Land use right of Chongqing Konka 45,073,685.19 Mortgage loan
Total 506,091,816.68
21. Development expenses
There were no development expenses at the end of the Reporting Period.
22. Goodwill
（1）Original carrying value of goodwill
116
Increase in the Decrease in the
Reporting Period Reporting Period
Opening Formed Closing
Investee
balance through balance
Others Disposal Others
business
combinations
Jiangxi 340,111,933 340,111,933.
Konka .01 01
XingDa 44,156,682. 44,156,682.2
HongYe 25 5
384,268,615 384,268,615.
Total
.26 26
（2）Provision for goodwill impairment
Increase in the Decrease in the
Opening Reporting Period Reporting Period Closing
Investee
balance balance
Provision Others Disposal Others
Jiangxi 340,111,933.01 340,111,933.01
Konka
XingDa 21,959,947.14 21,959,947.14
HongYe
Total 362,071,880.15 362,071,880.15
（3）Information on the asset group or the combination of asset groups of the goodwill
The asset group or combination of asset groups in which the goodwill is located is the
composition of all main business operating tangible assets and identifiable intangible assets
(excluding working capital and non-operating assets) reflected in the balance sheet of the
corresponding subsidiary and related to goodwill Asset group. As of 30 June 2023, there were no
specific signs of impairment during the reporting period, and no provision for impairment was
required.
23. Long-term prepaid expense
Increase in Amortisation in
Other decreased
Item Opening balance the Reporting the Reporting Closing balance
amount
Period Period
Decoration 134,516,167.2
263,367,218.24 33,594,230.18 174,102.43 364,115,052.87
expenses 4
Shoppe
18,787,080.49 11,228,271.92 10,138,894.42 89,761.11 19,786,696.88
expense
Others 105,155,204.34 29,976,322.80 19,215,146.82 106,194.70 115,810,185.62
175,720,761.9
Total 387,309,503.07 62,948,271.42 370,058.24 499,711,935.37
6
24. Deferred income tax assets/deferred income tax liabilities
（1）Deferred tax assets that have not been offset
117
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Deductible
losses 4,098,631,230.28 848,280,716.81 3,446,211,696.71 710,037,893.08
Provision for
asset 1,701,969,895.32 374,586,824.01 1,665,450,141.63 364,146,193.07
impairment
Deferred
117,990,955.16 29,205,238.79 90,355,036.00 22,296,259.01
revenue
Accrued
278,506,825.93 59,960,993.91 208,346,464.01 49,058,992.22
expenses
Unrealised
internal sales 37,964,452.00 9,491,113.00 62,006,060.41 15,501,515.10
profits
Others 150,433,381.08 35,004,869.54 192,042,399.09 40,620,988.75
Total 6,385,496,739.77 1,356,529,756.06 5,664,411,797.85 1,201,661,841.23
（2）Deferred tax liabilities that have not been offset
Closing balance Opening balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Estimated added value
of assets not under the 176,116,420.43 37,688,081.44 193,084,308.55 41,509,033.61
same control
Prepaid interest 53,353,541.64 13,338,385.41 46,965,768.40 11,741,442.10
Accelerated
depreciation of fixed 40,552,515.38 9,987,203.85 4,406,228.55 1,376,446.54
assets
Financial assets at fair
value through profit or 461,426,619.30 115,356,654.83 98,900,582.49 24,725,145.63
loss
Others 136,243,885.68 33,578,141.66 92,458,572.57 19,678,578.52
Total 867,692,982.43 209,948,467.19 435,815,460.56 99,030,646.40
（3）Breakdown of unrecognised deferred tax assets
Item Closing balance Opening balance
Deductible losses 2,098,966,791.56 2,114,844,242.75
Deductible temporary 2,967,427,358.07
2,554,384,865.59
differences
Total 4,653,351,657.15 5,082,271,600.82
（4）Deductible losses of unrecognised deferred tax assets matured/will mature in the
following year
Year Closing balance Opening balance Notes
2023 128,930,652.40 134,203,193.22
118
Year Closing balance Opening balance Notes
2024 27,800,217.79 92,292,924.99
2025 87,209,765.43 136,655,028.18
2026 174,626,635.88 263,654,830.43
2027 340,755,561.77 1,488,038,265.93
2028 and following
1,339,643,958.29
years
Total 2,098,966,791.56 2,114,844,242.75
25. Other non-current assets
Closing balance
Item Provision for
Book balance Carrying value
impairment
Prepayment for
1,031,630,446.98 1,031,630,446.98
land-purchase
Prepayment for
construction,
262,170,619.82 262,170,619.82
equipment and other
long-term assets
Total 1,293,801,066.80 1,293,801,066.80
(Continued)
Opening balance
Item Provision for
Book balance Carrying value
impairment
Prepayment for
1,459,111,732.63 1,459,111,732.63
land-purchase
Prepayment for
construction,
251,133,645.63 251,133,645.63
equipment and other
long-term assets
Total 1,710,245,378.26 1,710,245,378.26
26. Short-term loans
（1）Classification of short-term loans
Type of borrowings Closing balance Opening balance Notes
Unsecured loan 4,837,751,882.14 5,252,631,775.26
Guaranteed loan 1,617,632,258.71 1,953,423,601.39 ①①①①
Mortgage loan 324,461,605.28 373,503,928.32 ①①①①
Total 6,779,845,746.13 7,579,559,304.97
① The Company provides joint and several liability guarantee for the short-term borrowings totaling
119
RMB1,052,003,230.90 to its subsidiaries Anhui Konka, Dongguan Konka, Yibin Smart, Anhui Tongchuang, Boluo
Precision, Jiangxi Konka, Jiangxi High-permeability Substrate, Xinfeng Microcrystalline, Liaoyang Kangshun and
Konka Xinyun.
① The Company has obtained short-term borrowings amounting to RMB510,570,138.89 from Shenzhen Chegongmiao
Sub-branch of China Everbright Bank Co., Ltd., for which the Company's subsidiary Electronics Technology provides
joint and several liability guarantee at the maximum amount.
① The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting to RMB4,850,000.00
from Shenzhen Sub-branch of Bank of Hangzhou Co., Ltd., for which Shenzhen Qianhai Datang Technology Co., Ltd.
provides guarantee.
① The Company's subsidiary Ningbo Khr Electric Appliance Co., Ltd. has obtained short-term borrowings amounting
to RMB50,208,888.92 from Cixi Guancheng Branch of Bank of China Limited, for which the Company and Korea
Electric Group Co., Ltd. provide joint and several liability guarantee at a ratio of 3:2.
① The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to RMB120,854,386.40
from Chuzhou Branch of Bank of China Limited, for which it provides land use rights of a carrying value of
RMB36,265,753.33 and houses and buildings of a carrying value of RMB419,389,308.53 as mortgage.
① The Company's subsidiary Jiangsu Konka Smart has obtained short-term borrowings amounting to
RMB30,189,125.00 from Changzhou Branch of ZheShang Bank Co., Ltd., for which it provides buildings of a carrying
value of RMB36,798,337.13 and land use rights of RMB13,982,363.30 as mortgage.
① The Company's subsidiary XingDa HongYe has obtained short-term borrowings amounting to RMB94,106,816.10
from Zhongshan Fusha Sub-branch of Zhongshan Rural Commercial Bank, for which it provides land use rights of a
carrying value of RMB13,346,838.13 and buildings of a carrying value of RMB32,508,579.22 as mortgage and
certificates of time deposit of RMB19,800,000.00 as pledge and Hu Zehong provides joint and several liability
guarantee.
① The Company's subsidiary Anhui Tongchuang has obtained short-term borrowings amounting to RMB79,311,277.78
from Hefei Branch of ZheShang Bank Co., Ltd., for which it provides buildings of a carrying value of
RMB142,712,112.61 and land use rights of RMB17,700,070.99 as mortgage.
(2) Outstanding Short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the Reporting
Period.
27. Notes payable
Type of note Closing balance Opening balance
Banker's acceptance 965,232,549.62 881,426,104.13
Commercial acceptance draft 191,314,370.08 173,147,717.91
Total 1,156,546,919.70 1,054,573,822.04
28. Accounts payable
120
Item Closing balance Opening balance
Within one year 2,576,717,410.79 2,330,698,958.02
One to two years 102,890,328.05 155,636,729.60
Two to three years 129,155,491.56 89,142,446.14
Over three years 118,222,655.92 84,468,429.17
Total 2,926,985,886.32 2,659,946,562.93
29. Accounts received in advance
Type of note Closing balance Opening balance
Rents 825.69
Total 825.69
30. Contract liabilities
Item Closing balance Opening balance
Sales advances received 698,842,722.45 601,044,358.35
Total 698,842,722.45 601,044,358.35
31. Employee remuneration payable
（1）List of payroll payable
Item Opening Increase in the Decrease in the Closing balance
balance Reporting Period Reporting Period
Short-term
343,646,678.61 719,840,311.47 883,580,151.76 179,906,838.32
remuneration
Post-employm
ent
benefits-defin
4,600,603.98 53,677,921.52 56,607,348.20 1,671,177.30
ed
contribution
plans
Dismissal
360,921.46 6,681,292.01 6,576,287.67 465,925.80
benefits
Other benefits
due within one
year
Total 348,608,204.05 780,199,525.00 946,763,787.63 182,043,941.42
（2）Short-term remuneration
Item Opening balance Increase in the Decrease in the Closing balance
Reporting Period Reporting Period
Salaries, bonuses,
allowances and 334,684,052.90 627,794,483.80 793,883,970.52 168,594,566.18
subsidies
Employee 3,936,505.74 26,927,394.98 23,011,331.06 7,852,569.66
121
Item Opening balance Increase in the Decrease in the Closing balance
Reporting Period Reporting Period
benefits
Social insurance
1,058,903.83 28,162,423.38 28,403,658.03 817,669.18
premiums
Including:
Medical
542,052.97 25,212,748.22 25,234,686.15 520,115.04
insurance
premiums
Work
injury insurance 258,547.07 1,790,935.44 2,045,091.89 4,390.62
premiums
Maternity
insurance 258,303.79 1,158,739.72 1,123,879.99 293,163.52
premiums
Housing fund 302,288.94 30,708,276.31 30,929,187.43 81,377.82
Labour union
funds and 2,815,551.22 6,247,733.00 6,502,628.74 2,560,655.48
education funds
Short-term
absence with
payment
Short-term profit
sharing plan
Others 849,375.98 849,375.98
Total 343,646,678.61 719,840,311.47 883,580,151.76 179,906,838.32
（3）Defined contribution plans
Item Opening Increase in the Decrease in the Closing
balance Reporting Reporting balance
Period Period
Basic endowment
management 4,410,027.51 52,338,803.77 55,194,755.17 1,554,076.11
insurance
Unemployment
insurance 190,576.47 1,339,117.75 1,412,593.03 117,101.19
premiums
Annuity
contribution
Total 4,600,603.98 53,677,921.52 56,607,348.20 1,671,177.30
32. Tax and fees payables
Item Closing balance Opening balance
Corporate income tax 81,680,682.71 178,994,811.66
Value-added tax 58,801,002.32 60,178,835.36
Fund for disposing abandoned 14,716,729.00
15,232,892.00
appliances and electronic products
City construction and maintenance tax 3,354,684.29 3,710,919.05
122
Item Closing balance Opening balance
Education fees and local education 2,735,721.75
2,445,441.96
Surcharge
Stamp duty 7,284,321.59 9,955,063.53
Land use tax 11,049,570.88 11,028,106.31
Personal income tax 2,031,906.97 2,477,590.24
Property tax 4,367,360.15 4,511,721.21
Tariff 1,572,800.19 1,624,434.41
Others 1,481,969.85 1,168,746.84
Total 189,302,632.91 291,102,679.36
33. Other Payables
Item Closing balance Opening balance
Interest payable 40,524.22 29,590,464.00
Other payables 1,728,597,316.54 1,866,120,909.34
Total 1,728,637,840.76 1,895,711,373.34
33.1. Interests payable
Item Closing balance Opening balance
Interest on long-term borrowings with
interest paid by instalment and 29,271,307.22
principal paid at maturity
Interest payable on short-term
40,524.22 319,156.78
borrowings
Total 40,524.22 29,590,464.00
33.2 Other Payables
（1） Listed by account nature
Nature of fund Closing balance Opening balance
Trading funds 587,476,707.68 677,014,483.12
Expenses payable 537,067,094.62 538,693,780.45
Related party borrowing 210,445,900.64 286,552,967.74
Cash deposit and front 293,368,012.84 286,952,679.25
Advance payment 6,254,533.38 5,482,995.92
Equity transfer payment 6,302,796.96 6,302,796.96
Others 87,682,270.42 65,121,205.90
Total 1,728,597,316.54 1,866,120,909.34
（2） Significant other accounts payable with an age of more than one year
123
Unit Reason for
Closing balance non-repayment or
carry-over
The Third Construction Engineering
Company Ltd. of China Construction 21,877,760.25 Not yet due for payment
Second Engineering Bureau
Total 21,877,760.25
34. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one 249,391,640.39
3,707,359,363.54
year
Long-term payables due within one 139,213,550.70
79,815,088.04
year
Bonds payable due within one year 1,522,701,645.91
Lease liabilities due within one year 10,403,563.49 20,614,839.60
Total 5,320,279,660.98 409,220,030.69
35. Other current liabilities
Item Closing balance Opening balance
Accounts payable with trade
21,548,290.82 26,744,560.49
acceptance notes
Tax to be charged off 27,268,196.78 21,806,789.93
Refunds payable 20,828,377.91 19,898,433.29
Total 69,644,865.51 68,449,783.71
36. Long-term borrowings
（1） Classification of long-term loans
Type of borrowings Closing balance Opening balance Notes
Guaranteed loan 4,103,161,904.83 3,116,984,312.66 ①①①①①①①
Mortgage loan 922,805,731.59 849,816,227.52 ①①①①①①①
Entrusted borrowings 2,554,463,826.38 2,595,372,200.43 ①
Unsecured loan 3,213,210,743.03 2,536,925,213.87
Pledge loan 87,125,658.45 57,225,088.80 ①①
Less: Portion due
3,707,359,363.54 249,391,640.39
within one year
Total 7,173,408,500.74 8,906,931,402.89
①The Company has obtained long-term borrowings amounting to RMB1,000,777,777.73
from Shenzhen Branch of China Development Bank Co., Ltd., the term of which is from 24 June
2021 to 22 August 2025, and for which the Company's parent company OCT Group provides
124
joint and several liability guarantee at the maximum amount.
①The Company has obtained long-term borrowings amounting to RMB1,889,387,500.00
from Shenzhen Branch of China Guangfa Bank Co., Ltd., the term of which is from 24 June 2021
to 22 August 2025, and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.
①The Company has obtained long-term borrowings amounting to RMB1,000,933,333.33
from the Export-Import Bank of China, the term of which is from 22 June 2022 to 21 June 2024,
and for which the Company's parent company OCT Group provides joint and several liability
guarantee at the maximum amount.
①The Company's subsidiary Sichuan Konka has obtained long-term borrowings amounting
to RMB30,052,333.33 from Yibin Rural Commercial Bank Co. Ltd., of which the term is from 23
May 2023 to 26 April 2026, and for which the Company provides joint and several liability
guarantee.
①The Company's subsidiary Konka Xinyun Semiconductor Technology (Yancheng) Co., Ltd.
has obtained long-term borrowings amounting to RMB60,839,080.00 from Yancheng Branch of
HuaXia Bank Co., Ltd., the term of which is from 15 September 2021 to 21 August 2026, and for
which the Company and its subsidiary Kowin Memory Technology (Shenzhen) Co., Limited
provide joint and several liability guarantee at the maximum amount.
①The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB120,131,666.66 from Chuzhou Plaza Sub-branch of China Construction Bank Co., Ltd., of
which the term is from 29 October 2021 to 26 October 2026, and for which the Company
provides joint and several liability guarantee.
①The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB1,040,213.78 from Chuzhou Branch of Agricultural Bank of China Co., Ltd., of which the
term is from 29 June 2023 to 24 June 2028, and for which the Company provides joint and
several liability guarantee.
①The Company has obtained long-term borrowings amounting to RMB378,796,757.10 from
Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co., Ltd., the term of which is from 22
January 2021 to 22 January 2026, and for which it provides land use rights of a carrying value of
RMB5,344,167.42 and investment properties of a carrying value of RMB101,798,700.19 and
housing buildings of a carrying value of RMB73,963,459.56 as mortgage.
①The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB91,725,600.69 from Chuzhou Branch of Industrial Bank Co., Ltd., of which the term is from
16 July 2021 to 15 July 2031, and for which it provides land use rights of a carrying value of
RMB18,208,042.67 and housing buildings of a carrying value of RMB188,120,616.55 as
mortgage and the Company provides joint and several liability guarantee.
①The Company's subsidiary Dongguan Konka has obtained long-term borrowings
125
amounting to RMB332,157,583.04 from Dongguan Fenggang Sub-branch of Agricultural Bank of
China Co., Ltd., the term of which is from 23 June 2021 to 21 October 2030, and for which it
provides land use rights of a carrying value of RMB187,867,124.67 as mortgage and the
Company provides joint and several liability guarantee.
①The Company's subsidiary Frestec Smart Home has obtained long-term borrowings
amounting to RMB10,012,500.00 from Xinxiang Jiankang Road Sub-branch of China CITIC
Bank Corporation Limited, the term of which is from 27 October 2022 to 4 May 2030, and for
which it provides land use rights of a carrying value of RMB91,233,386.84 as mortgage and the
Company as well as Meng Honggang, the legal person of Chuzhou Hanshang Electric Appliance
Co.,Ltd., provide joint and several liability guarantee respectively at 51% and 49%.
①The Company’s subsidiary Yantai Kangjin has obtained long-term borrowings amounting
to RMB10,100,000.00 from Yantai Rural Commercial Bank Co. Ltd. with the term from 16
January 2023 to 12 February 2026, and for which it provides construction in progress of a
carrying value of RMB31,357,965.10 as mortgage.
①The Company’s subsidiary Nantong Kanghai has obtained long-term borrowings
amounting to RMB22,004,742.67 from Haimen Sub-branch of Bank of Suzhou Co., Ltd. with the
term from 16 January 2023 to 25 July 2025, and for which it provides inventories of a carrying
value of RMB100,000,000.00 as mortgage.
①The Company's subsidiary Chongqing Konka has obtained long-term borrowings
amounting to RMB78,008,548.09 from Chongqing Liangjiang Branch of Industrial and
Commercial Bank of China Co., Ltd., the term of which is from 30 December 2022 to 19
December 2037, and for which it provides housing buildings of a carrying value of
RMB340,452,555.35 and land use rights of a carrying value of RMB45,073,685.19 as mortgage
and the Company provides joint and several liability guarantee at the maximum amount.
①The Company's parent company OCT Group has extended entrusted loans amounting to
RMB2,554,463,826.38 to the Company through China Merchants Bank Co., Ltd., the term of
which is from 10 January 2022 to 25 May 2025.
①The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB36,141,615.32 from Yibin Sub-Branch of Postal Savings Bank of China Co.,
Ltd. with the accounts receivable arising from the prospective earnings from a concession
agreement with an appraisal value of RMB595,900,000.00 as pledge, and the term thereof is from
30 June 2022 to 15 April 2040.
①The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB50,984,043.13 from Yibin Sub-Branch of Industrial and Commercial Bank of
China Co., Ltd. with the accounts receivable arising from the prospective earnings from a
concession agreement with an appraisal value of RMB595,900,000.00 as pledge, and the term
thereof is from 30 June 2022 to 15 April 2040.
126
37. Bonds payable
(1) List of bonds payable
Item Closing balance Opening balance
Corporate bonds 4,818,258,522.17 4,792,392,044.13
Less: Bonds payable due
1,522,701,645.91
within one year
Total 3,295,556,876.26 4,792,392,044.13
(2) Changes of bonds payable (excluding other financial instruments divided as financial
liabilities such as preferred shares and perpetual bonds)
Bond
Bond name Total par value Issue date Issue amount Opening balance
maturity
21Konka0 8 January Three
1,000,000,000.00 996,500,000.00 1,042,632,148.95
1 (note a)) 2021 years
21Konka0
21 May Three
2 (note 500,000,000.00
2021 years
498,250,000.00 511,544,025.20
b))
21Konka0 Three
800,000,000.00 9 July 2021 797,200,000.00 813,864,800.79
3 (note c)) years
22Konka0
Three
1 (note 1,200,000,000.00 14 July 2022
years
1,195,800,000.00 1,216,078,113.18
d))
22Konka0 8 September Three
600,000,000.00 597,900,000.00 604,838,993.73
3 (note e)) 2022 years
22Konka0 18 October Three
600,000,000.00 597,900,000.00 603,433,962.28
5 (note f)) 2022 years
Total 4,700,000,000.00 4,683,550,000.00 4,792,392,044.13
(Continued)
Issue in the Accrue interest by Amortisation of
Bond name
Reporting Period par value premium/discount
21Konka01 (note a)) 22,300,000.02 550,314.48
21Konka02 (note b)) 10,000,000.02 275,157.24
21Konka03 (note c)) 15,799,999.98 440,251.56
22Konka01 (note d)) 19,380,000.00 660,377.34
22Konka03 (note e)) 9,900,000.00 330,188.70
22Konka05 (note f)) 10,500,000.00 330,188.70
Total 87,880,000.02 2,586,478.02
(Continued)
Repay during the Reporting
Bond name Closing balance
Period
127
Repay during the Reporting
Bond name Closing balance
Period
21Konka01 (note a)) 44,600,000.00 1,020,882,463.45
21Konka02 (note b)) 20,000,000.00 501,819,182.46
21Konka03 (note c)) 830,105,052.33
22Konka01 (note d)) 1,236,118,490.52
22Konka03 (note e)) 615,069,182.43
22Konka05 (note f)) 614,264,150.98
Total 64,600,000.00 4,818,258,522.17
Note 1:
a. On 8 January 2021, the Company issued RMB1 billion of private placement corporate
bonds with the duration of three years, the annual interest rate of 4.46% and the due date of 8
January 2024.
b) On 21 May 2021, the Company issued RMB500 million of private placement corporate
bonds with the duration of three years, the annual interest rate of 4.00% and the due date of 21
May 2024.
c) On 9 July 2021, the Company issued RMB800 million of private placement corporate
bonds with the duration of three years, the annual interest rate of 3.95% and the due date of 9 July
2024.
d) On 14 July 2022, the Company issued RMB1.2 billion of public placement corporate
bonds with the duration of three years, the annual interest rate of 3.23% and the due date of 14
July 2025.
e) On 8 September 2022, the Company issued RMB600 million of private placement
corporate bonds with the duration of three years, the annual interest rate of 3.30% and the due
date of 8 September 2025.
f) On 18 October 2022, the Company issued RMB600 million of private placement
corporate bonds with the duration of three years, the annual interest rate of 3.50% and the due
date of 18 October 2025.
Note 2: OCT Group provided full-amount, unconditional and irrevocable joint and several
liabilities guarantee for the due payment of the public and private offering of corporate bonds.
Note 3: The current year's repayments are interest.
38. Lease liabilities
Item Closing balance Opening balance
Lease liabilities 41,588,054.08 57,201,478.76
Less: Lease liabilities due 10,403,563.49 20,614,839.60
128
within one year (see Note VI-34)
Total 31,184,490.59 36,586,639.16
39. Long-term payables
Nature of fund Closing balance Opening balance
Accrued financing lease outlay 88,406,103.20 152,547,691.61
Less: Unrecognised financing
1,717,892.65 5,370,013.73
expenses
Less: Amount due within one
79,815,088.04 139,213,550.70
year (see Note VI-34)
Total 6,873,122.51 7,964,127.18
40. Long-term employee benefits payable
Item Closing balance Opening balance
Termination benefits-net liabilities of
4,794,271.77 4,894,209.73
defined contribution plans
Total 4,794,271.77 4,894,209.73
41. Projected liabilities
Item Closing balance Opening balance Cause(s)
Product quality After-sales of
118,873,974.69 74,590,486.63
assurance household appliances
Performance
82,723,436.52 82,723,436.52
compensation
Pending litigation 206,591.51 206,591.51
Discard expenses 1,921,004.01 1,875,064.89
Total 203,725,006.73 159,395,579.55
129
42. Deferred revenue
Increase in the Decrease in the
Item Opening balance Closing balance Cause(s)
Reporting Period Reporting Period
Government grants 334,844,966.31 74,815,467.22 47,296,452.95 362,363,980.58 Related to assets/income
Total 334,844,966.31 74,815,467.22 47,296,452.95 362,363,980.58
（1） Category of deferred income
Amount
recognised as Amount recognised
Subsidies
non-operating as other income in Related to
Government subsidy items Opening balance increased in the Other changes Closing balance
income in the the Reporting assets/ income
Reporting Period
Reporting Period
Period
Plant construction subsidy for Yibin Related to
105,864,968.77 1,159,766.16 104,705,202.61
Konka Industrial Park assets
Medical waste centralised treatment Related to
28,405,837.81 5,739,564.92 1,009,001.83 33,136,400.90
project in Gaoxian County, Yibin City assets
Related to
Subsidy for industrial R&D 20,000,000.00 20,000,000.00
assets
Returned payments for land by Related to
18,327,272.79 196,363.62 18,130,909.17
Chongqing Konka assets
Related-to-inco
Relocation subsidy 13,085,700.00 10,000,000.00 3,085,700.00
me
Plant decoration subsidy for Yibin Related to
11,513,723.80 719,607.72 10,794,116.08
Konka Technology Park assets
Special funds for supporting the Related to
11,440,000.00 11,440,000.00
development of advanced assets
130
Amount
recognised as Amount recognised
Subsidies
non-operating as other income in Related to
Government subsidy items Opening balance increased in the Other changes Closing balance
income in the the Reporting assets/ income
Reporting Period
Reporting Period
Period
manufacturing and modern service
industries
Subsidy for high-tech innovation and Related to
10,596,031.61 449,675.04 10,146,356.57
operation in Yancheng assets
Subsidy for the Micro LED R&D
Related to
project of Chongqing Optoelectronic 25,000,000.00 25,000,000.00
assets
Technology Research Institute
Subsidy for the project of Frestec Related to
21,250,000.00 21,250,000.00
Refrigeration assets
Other government subsidies related to Related to
115,611,431.53 22,825,902.30 8,497,260.28 24,914,778.30 350,000.00 104,675,295.25
assets/income assets/income
Total 334,844,966.31 74,815,467.22 8,497,260.28 38,449,192.67 350,000.00 362,363,980.58
131
43. Other non-current liabilities
Item Closing balance Opening balance
Contract liabilities over one
381,807,253.24 314,233,260.08
year
Total 381,807,253.24 314,233,260.08
44. Share Capital
Increase/decrease (+/-)
Opening Bonus
Item New Closing balance
balance Bonus issue Other Subtota
shares
issue from s l
issued
profit
Total
2,407,945,408.00 2,407,945,408.00
shares
45. Capital surplus
Decrease in the
Increase in the
Item Opening balance Reporting Closing balance
Reporting Period
Period
Other capital
365,247,361.05 90,301,655.75 17,433,984.73 438,115,032.07
surplus
Total 365,247,361.05 90,301,655.75 17,433,984.73 438,115,032.07
Note: Capital surplus for the Reporting Period--other capital surplus increase and decrease
due to the main reasons:
① The associated enterprise Wuhan Tianyuan Environmental Protection Co., Ltd. increased
capital and shares, resulting in an increase in other capital surplus of
RMB90,301,655.75;
② Other capital surplus decreased by RMB3,656,102.53 due to the disposal of the
associated enterprise Guangdong Chutian Dragon Co., Ltd.
③ The change in the accounting method for Chutian Dragon Co., Ltd. decreased other
capital surplus by RMB13,777,882.20.
132
46. Other comprehensive income
Amount incurred in the Reporting Period
Less:
Less: Amount
Amount recognised
recognised as other
as other comprehens
Less:
Amount comprehensi ive income
Opening Inco Attributable to Attributable to Closing balance
Item incurred before ve income in in the
Balance me the parent minority Balance
income tax in the previous previous
tax company after shareholders
the Reporting period and period and
expe tax after tax
Period transferred transferred
nse
to profit or to retained
loss in the earnings in
Reporting the
Period Reporting
Period
I. Other
comprehensive income
that cannot be -6,398,878.20 -6,398,878.20
reclassified as profits
or losses
Changes in the fair
value of other equity
-6,398,878.20 -6,398,878.20
instrument
investments
Others
II. Other
comprehensive income -7,866,303.43 4,837.39 4,837.39 -7,861,466.04
reclassified as profits
133
Amount incurred in the Reporting Period
Less:
Less: Amount
Amount recognised
recognised as other
as other comprehens
Less:
Amount comprehensi ive income
Opening Inco Attributable to Attributable to Closing balance
Item incurred before ve income in in the
Balance me the parent minority Balance
income tax in the previous previous
tax company after shareholders
the Reporting period and period and
expe tax after tax
Period transferred transferred
nse
to profit or to retained
loss in the earnings in
Reporting the
Period Reporting
Period
and losses
Including: Other
comprehensive income
that can be transferred
-4,029,937.27 -4,029,937.27
to profits or losses
under the equity
method
Exchange difference
on translating foreign -3,836,366.16 4,837.39 4,837.39 -3,831,528.77
operations
Total of other
comprehensive -14,265,181.63 4,837.39 4,837.39 -14,260,344.24
income
134
47. Surplus reserves
Decrease in
Increase in the
the
Item Opening balance Reporting Closing balance
Reporting
Period
Period
Statutory surplus
1,005,961,774.19 1,005,961,774.19
reserves
Discretionary
238,218,590.05 238,218,590.05
surplus reserves
Total 1,244,180,364.24 1,244,180,364.24
48. Retained earnings
Same period of the
Item This Period
previous year
Closing balance of previous period 3,638,868,004.50 5,229,563,700.95
Add: Total beginning balance of retained
earnings before adjustments
Including: Changes in accounting policies
Other adjustment factors
Beginning balance of the Reporting
3,638,868,004.50 5,229,563,700.95
Period
Plus: Net profit attributable to owners of
-193,240,232.33 -1,470,298,426.05
the parent company in the Reporting Period
Other comprehensive income
560,005.44
transferred to retained earnings
Less: Appropriation of statutory surplus
reserves
Appropriation of discretionary surplus
reserves
Ordinary share dividends payable 120,397,270.40
Ending balance of this period 3,446,187,777.61 3,638,868,004.50
49. Operating revenue and cost of sales
(1) Operating income and operating costs
Amount incurred in the Reporting Period Amount incurred in the previous period
Item
Income Cost Income Cost
Principal 9,989,383,650.13 9,658,914,170.75
16,243,380,757.24 16,013,632,913.79
business
Other 482,677,521.81 420,429,613.36
652,089,519.57 468,807,708.05
business
Total 10,472,061,171.94 10,079,343,784.11 16,895,470,276.81 16,482,440,621.84
135
(2) List of deductions from operating income
Amount incurred in the Amount incurred in
Item Reporting Period Details the previous period Details
(RMB) (RMB)
Amount of operating
10,472,061,171.94 16,895,470,276.81
income
Total amount of items
deducted from operating 336,328,394.84 467,356,118.26
income
Proportion of the total
amount of items deducted
3.21 2.77
from operation income in
operating income (%)
I. Business income irrelevant to principal business
1. Other business income
outside normal business.
E.g., income from the
lease of fixed assets, Income from
Income from sales
intangible assets, sales of waste
of waste products,
packaging materials, sales products, utility
utility bills, rental
materials, non-monetary bills, rental
income, income
asset exchange with income, income
336,328,394.84 from material 467,356,118.26
materials and operation of from material
sales and other
entrusted management sales and other
income not related
business, and income that income not
to the main
is included in the income related to the
business
from primary business but main business
is outside the normal
business of the listed
company.
2. Income from
non-qualified
pseudo-banking
businesses; such as
interest income from
borrowed funds; income
from new pseudo-banking
businesses in the reporting
and previous fiscal years,
such as income from
guarantee, commercial
factoring, small loans,
finance lease and pawn,
except finance lease
business conducted for the
sale of primary products.
3. Income from new
trading businesses in the
reporting and previous
fiscal years.
4. Income from related
transactions irrelevant to
the existing normal
operation businesses of
the listed company.
5. Income of subsidiaries
acquired in business
combination under the
136
Amount incurred in the Amount incurred in
Item Reporting Period Details the previous period Details
(RMB) (RMB)
same control from the
period-beginning to the
combination date.
6. Income from businesses
that have not yet had or
are difficult to have a
stable business model.
Subtotal of business
income irrelevant to 336,328,394.84 467,356,118.26
principal business
II. Income without commercial substance
1. Income from
transactions or events that
do not significantly alter
the risk, timing or amount
of future cash flows of the
company.
2. Income from
transactions without true
business. E.g., false
income realised in the way
of self-transaction and
false income from
transactions by means of
Internet technology or
other means.
3. Income from businesses
at unfair trade prices.
4. Income from
subsidiaries or businesses
acquired in business
combination at unfair
considerations or by
non-trading means in the
reporting fiscal year.
5. Income involved in
non-standard audit
opinions in audit opinions.
6. Other income from
transactions or events
without commercial
rationality.
Subtotal of income
without commercial
substance
III. Other income
irrelevant to principal
business or without
commercial substance
Amount of operating
10,135,732,777.10 16,428,114,158.55
income after deduction
(3) Details of income from contracts
137
Amount incurred in this Total
Category of contracts
year
Product categories
Of which: Industry trade business 4,350,074,427.45 4,350,074,427.45
Colour TV business 1,919,054,194.60 1,919,054,194.60
Consumer appliances 2,285,781,923.95 2,285,781,923.95
business
Material technology business 793,973,411.72 793,973,411.72
PCB business 245,209,214.94 245,209,214.94
Semi-conductor business 5,850,208.69 5,850,208.69
Other business 872,117,790.59 872,117,790.59
Total 10,472,061,171.94 10,472,061,171.94
Classified by operating region
Of which: Domestic 6,571,071,083.57 6,571,071,083.57
Overseas 3,900,990,088.37 3,900,990,088.37
Total 10,472,061,171.94 10,472,061,171.94
(4) Main operations (classified by product)
Amount incurred in this year Amount incurred last year
Item
Income Cost Income Cost
Supply chain
trading 4,350,074,427.45 4,306,025,179.35 10,171,407,159.62 10,120,679,704.92
business
Colour TV
1,919,054,194.60 1,950,631,109.94 2,389,828,778.20 2,418,706,246.97
business
Consumer
appliances 2,285,781,923.95 2,020,436,028.43 1,900,207,771.57 1,711,652,138.98
business
Material
technology 793,973,411.72 778,483,727.14 774,458,509.72 749,206,296.93
business
PCB business 245,209,214.94 209,373,794.15 291,397,810.91 280,056,849.29
Semi-conducto
5,850,208.69 15,242,064.76 50,916,083.90 52,958,914.59
r business
Others 389,440,268.78 378,722,266.98 665,164,643.32 680,372,762.11
Total 9,989,383,650.13 9,658,914,170.75 16,243,380,757.24 16,013,632,913.79
(5) Information in relation to the trade price apportioned to the residual contract
performance obligation:
The amount of revenue corresponding to performance obligations that have been signed
but have not yet been fulfilled or completed at the end of the year is RMB 1,637,959,026.62,
138
of which RMB1,589,889,591.47 is expected to be recognized as revenue in 2023, and the
remaining RMB52,657,167.35 is expected to be recognized as revenue in 2024 and following
years.
50. Taxes and surcharges
Item Amount incurred in the Amount incurred in the
Reporting Period previous period
Stamp duty 17,006,122.55 15,956,693.35
Land use tax 8,628,212.80 13,241,507.04
City maintenance &
3,916,672.25 8,149,278.82
construction tax
Property tax 9,429,982.31 9,150,456.54
Educational surcharge 1,795,764.31 3,669,080.87
Local educational surcharge 1,197,136.14 2,445,857.60
Water resources fund 474,599.45 228,825.54
Others 270,476.72 443,271.42
Total 42,718,966.53 53,284,971.18
51. Sales costs
Item Amount incurred in the Amount incurred in the
Reporting Period previous period
Employee benefits 171,827,349.50 159,102,544.06
Advertising expense 114,639,309.81 141,115,130.40
Promotional activities 95,664,759.55 72,748,154.60
Warranty fee 80,388,332.75 79,063,725.82
Logistic Fee 41,136,310.25 30,314,056.31
Taxes and fund 549,965.00 26,642,413.92
Lease expense 9,554,537.27 12,385,615.94
Travel expenses 5,281,279.82 7,448,071.22
Entertainment fees 6,056,077.13 5,435,508.51
Exhibition expenses 5,525,688.44 1,713,164.44
Others 27,913,056.01 24,257,299.06
Total 558,536,665.53 560,225,684.28
52. Management costs
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Employee benefits 201,752,601.81 213,795,836.28
Depreciation charges 103,962,882.38 71,715,060.26
139
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Intermediary fees 20,680,100.93 17,693,182.52
Travel expenses 6,391,903.53 3,765,905.28
Water and electricity expenses 580,512.03 5,296,977.22
Loss on scraping of inventories 5,169,402.73 2,086,492.21
Others 51,707,164.36 39,955,230.74
Total 390,244,567.77 354,308,684.51
53. R&D expense
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Salary 125,331,251.82 118,779,499.31
Depreciation and amortisation
52,673,986.51 49,464,665.22
charge
New product trial production
12,377,094.01 24,519,154.67
expense
Material expense 17,796,228.66 11,347,523.74
Commission service fee 2,048,184.94 7,150,370.69
Testing expense 3,249,155.22 3,120,118.84
Information use fee 360,938.22 1,438,063.33
Others 23,197,053.73 21,529,130.76
Total 237,033,893.11 237,348,526.56
54. Financial expenses
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Interest expense 432,772,700.64 465,576,348.06
Less: Interest income 123,908,981.38 109,353,054.39
Add: Exchange loss -133,558,528.06 -114,830,078.08
Other expenses 23,770,433.30 25,722,111.99
Total 199,075,624.50 267,115,327.58
55. Other income
Amount incurred in the Amount incurred in the
Resources
Reporting Period previous period
Support funds 70,000,000.00 227,351,711.98
Rewards and subsidies 23,457,361.87 90,960,177.86
Transfer of deferred income 38,449,192.67 13,538,617.74
140
Amount incurred in the Amount incurred in the
Resources
Reporting Period previous period
Software tax refund 3,434,829.42 7,949,955.87
Post subsidies 541,457.45 2,253,703.66
Land tax rebates 1,433,605.93
Subsidies for L/C exports 2,034,374.00 249,549.87
Total 137,917,215.41 343,737,322.91
56. Investment Returns
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Returns on long-term equity
investments calculated by the -30,242,661.05 59,402,481.72
equity method
Return on investment arising
from the disposal of long-term 188,118,447.66 406,299,201.96
equity investments
Income from remeasurement of
residual stock rights at fair 51,474,909.15 239,092,140.86
value after losing control power
Interest income from debt
investments during the holding 36,609,075.35 32,966,971.77
period
Investment income from
disposal of financial assets at -3,794,910.98 42,739.74
fair value through profit or loss
Financial assets transferred
from equity investments 574,780,174.75
calculated by the equity method
Investment income from
holding of trading financial 9,383,976.00
assets
Others 500,000.00
Total 826,829,010.88 737,803,536.05
57. Income from changes in fair value
Sources of income from Amount incurred in the Amount incurred in the
changes in the fair value Reporting Period previous period
Financial assets at fair value
-132,580,077.43 -638,799.36
through profit or loss
Total -132,580,077.43 -638,799.36
58. Credit impairment loss
141
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Bad debt loss of notes receivable 6,446,862.01 7,050,461.27
Bad debt loss of accounts
-50,164,953.87 -42,299,060.06
receivable
Bad debt loss of other accounts
-96,474,587.50 -43,359,714.77
receivable
Total -140,192,679.36 -78,608,313.56
59. Impairment Losses on Assets
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Inventory depreciation loss and
contract performance cost -15,274,484.20 -13,309,988.75
impairment loss
Contractual asset impairment loss -9,012.56
Total -15,283,496.76 -13,309,988.75
60. Asset disposal income ("-" for loss)
Amount
Amount
Amount recorded into the
incurred in the
Item incurred in the current
Reporting
previous period non-recurring
Period
profit or loss
Incomes from disposal of non-current
64,713.62 12,782,328.52 64,713.62
assets
Including: incomes from disposal of
non-current assets not classified as the 64,713.62 12,782,328.52 64,713.62
held-for-sale assets
Of which: Fixed assets disposal
-195,494.55 -75,972.28 -195,494.55
income
Right-of-use assets disposal
241,619.81 14,904.57 241,619.81
income
Intangible assets disposal income 18,588.36 12,843,396.23 18,588.36
Total 64,713.62 12,782,328.52 64,713.62
61. Non-operating income
(1) List of non-operating income
142
Amount
Amount
Amount recorded into the
incurred in the
Item incurred in the current
Reporting
previous period non-recurring
Period
profit or loss
Compensation and penalty income 2,522,169.54 14,518,135.77 2,522,169.54
Government subsidies unrelated to the
8,708,660.28 200,900.00 8,708,660.28
normal operation of the Company
Non-current assets damage and
450.00 364,917.85 450.00
retirement gains
Debt restructuring gains 33,184.00
Others 6,094,337.36 15,375,604.03 6,094,337.36
Total 17,325,617.18 30,492,741.65 17,325,617.18
(2) Government subsidies recorded in profit or loss of the current year
Item Issuing body Reason Type
Subsidy received
Chuzhou for participation in
Chuzhou Huike smart home
Development Zone Chuzhou Huike
appliance industry Subsidy
Management Intelligent Home
investment project subsidy
Committee Appliance Industry
Investment
Zhongshan Human
Subsidies received
New apprenticeship training Resources and Social
for training Subsidy
subsidies Security Bureau,
schoolchildren
Fusha Branch Office
Other employment
Others Subsidy
subsidies
(Continued)
Affect the
profit and Amount Amount
Special
loss for the incurred in incurred in Related to
Item subsidy
Reporting the Reporting the previous assets/income
or not
Period or Period period
not
Chuzhou Huike
smart home
Related to
appliance industry Not Not 8,497,260.28
income
investment project
subsidy
New apprenticeship Related to
Not Not 184,400.00
training subsidies income
Related to
Others Not Not 27,000.00
income
143
Total 8,708,660.28
62. Non-operating expenses
Amount recorded into
Amount incurred Amount incurred
the current
Item in the Reporting in the previous
non-recurring profit
Period period
or loss
Losses on damage and
1,419,908.80 829,936.20 1,419,908.80
scraping of non-current assets
Compensation expense 54,800.00 955,320.82 54,800.00
Others 2,851,899.22 2,075,688.78 2,851,899.22
Total 4,326,608.02 3,860,945.80 4,326,608.02
63. Income tax expenses
（1） Income tax expense
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Income tax expense of the
27,239,426.46 38,695,464.05
Reporting Period
Deferred income tax expense -43,950,094.04 -128,041,906.16
Total -16,710,667.58 -89,346,442.11
（2） Adjustment process of accounting profits and income tax expenses
Amount incurred in
Item
the Reporting Period
Profit before taxation -345,138,634.09
Income tax expense calculated at legal/applicable tax rate -86,284,658.52
Impact of different tax rates applied by subsidiaries 22,641,079.77
Impact of income tax in the periods before adjustment 12,568,007.52
Impact of non-taxable income 3,418,384.35
Impacts of non-deductible costs, expenses, and losses 6,267,791.52
Impact of using deductible losses on the deferred tax assets not recognised
-2,630,356.53
previously
Impact of deductible temporary differences or deductible losses of deferred
44,087,259.86
tax assets not recognised in the Reporting Period
Others -16,778,175.54
Income tax expense -16,710,667.58
144
64. Other comprehensive income
For details, refer to "Note VI-46 Other comprehensive income".
65. Cash flow statement
（1） Cash generated from/used in other operating/investing/financing activities
1） Other cash received related to operating activities
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Income from government
subsidies 196,790,552.27 398,867,359.07
Front money and guarantee
deposit 107,899,740.15 194,816,415.68
Interest income from bank
deposits 49,564,086.35 38,460,424.38
Trading funds 45,235,678.79 71,915,009.80
Compensation and penalty
income 8,691,566.66 4,270,552.74
Others 26,051,273.52 45,629,873.92
Total 434,232,897.74 753,959,635.59
2） Other cash paid related to operating activities
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Cash payment fee 535,602,399.78 608,403,775.17
Deposit and margin 146,237,387.07 141,618,948.53
Payment made on behalf 5,640,757.14 9,670,660.47
Expense for bank handling
2,878,961.21
charges 2,735,395.17
Others 65,077,290.21 120,570,024.96
Total 755,293,229.37 883,142,370.34
3） Other cash received related to investment activities
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Recovery of loan at call 382,971,149.03 2,345,834,176.94
Others 46,988,449.65 39,792,247.45
Total 429,959,598.68 2,385,626,424.39
4） Other cash paid related to investment activities
145
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Payment of loan at call 310,116,949.03 271,583,749.03
Others 161,037,718.80 25,736,148.70
Total 471,154,667.83 297,319,897.73
5） Other proceeds received related to financing activities
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Receiving loan at call 50,370,200.00 29,957,440.00
Recovery of margin deposit pledged 219,929,641.72 68,792,633.93
Others 23,432.92
Total 270,299,841.72 98,773,506.85
6） Other cash paid related to financing activities
Amount incurred in the Amount incurred in the
Item
Reporting Period previous period
Payment of lease-related accounts 62,969,375.44 155,109,520.16
Deposit as margin for pledge 401,172,422.54 117,654,180.32
Retuning loan at call 1,870,614.17 117,768,871.27
Financing cost 20,729,450.01 21,190,465.55
Others 1,765,552.03
Total 486,741,862.16 413,488,589.33
（2） Supplemental information for consolidated cash flow statement
Item Amount of the Amount of the previous
Reporting Period period
1. Reconciliation of net profit to cash flows
from operating activities:
Net profit -328,427,966.51 58,490,784.63
Plus: Provision for asset impairment 15,283,496.76 13,309,988.75
Credit impairment loss 140,192,679.36 78,608,313.56
Depreciation of fixed assets, depletion of
oil and gas assets, and depreciation of 217,019,718.21 210,447,096.53
productive biological assets
Depreciation of right-of-use assets 11,748,166.57 28,657,676.02
Amortisation of intangible assets 26,128,581.85 22,954,726.69
Amortisation of long-term prepaid expense 62,948,271.42 40,889,139.75
Losses on disposal of fixed assets, -64,713.62 -12,782,328.52
intangible assets and other long-lived assets
146
Item Amount of the Amount of the previous
Reporting Period period
(gains: negative)
Losses on scrap of fixed assets (gains:
1,419,458.80 465,018.35
negative)
Losses on changes in fair value (gains:
132,580,077.43 638,799.36
negative)
Finance costs (gains: negative) 383,689,359.03 439,621,848.38
Investment loss (gains: negative) -826,829,010.88 -737,803,536.05
Decrease in deferred income tax assets
-154,867,914.83 -127,089,601.40
(gains: negative)
Increase in deferred income tax liabilities
110,917,820.79 -932,734.69
(decrease: negative)
Decrease in inventories (gains: negative) -265,531,923.08 25,150,562.26
Decrease in accounts receivable generated
13,821,648.87 803,133,784.03
from operating activities (gains: negative)
Increase in accounts payable used in
296,871,337.26 -1,251,480,426.64
operating activities (decrease: negative)
Others -38,449,192.67 -13,538,617.74
Net cash flows from operating activities -201,550,105.24 -421,259,506.73
2. Significant investment and financing
activities not involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one
year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Closing balance of cash 6,030,068,656.57 5,903,519,802.47
Less: Opening balance of cash 5,461,912,010.90 5,968,347,219.03
Plus: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 568,156,645.67 -64,827,416.56
（3） Net cash paid for the acquisition of subsidiaries in the Reporting Period
No such cases in the Reporting Period.
（4） Net cash received for the disposal of subsidiaries in the Reporting Period
Amount of the
Item
Reporting Period
Cash or cash equivalents received in the Reporting Period from the 20,855,540.00
147
Amount of the
Item
Reporting Period
disposal of subsidiaries in the Reporting Period
Of which: Sichuan Hongxinchen Real Estate Development Co., Ltd. 20,855,540.00
Less: Cash and cash equivalents held by subsidiaries on the day when
2,036,650.33
control is lost
Of which: Sichuan Hongxinchen Real Estate Development Co., Ltd. 2,036,650.33
Add: Cash or cash equivalents received in the Reporting Period from
disposal of subsidiaries in the prior period
Net cash received from the disposal of subsidiaries 18,818,889.67
（5） Cash and cash equivalents
Item Closing balance Opening balance
Cash 6,030,068,656.57 5,461,912,010.90
Including: Cash on hand 14.78
Bank deposits available for
6,030,068,656.57 5,461,911,996.12
payment at any time
Ending balance of cash and cash
6,030,068,656.57 5,461,912,010.90
equivalents
66. Items in the statement of changes in shareholders' equity
There was no "other" amount to adjust the amount at the end of the previous year in this period.
67. Assets with restricted ownership or use rights
Closing carrying Reasons for the restriction
Item
value
Among them, RMB440,390,112.54 is the
margin deposit, which is pledged for borrowing
money or issuing bank acceptance
bills; RMB307,603.35 for financial supervision
Monetary funds 878,270,149.59
account funds; RMB226,700,000.00 is time
deposit that cannot be withdrawn in
advance; RMB210,872,433.70 is restricted due
to other reasons.
Notes receivable 217,674,323.25 Pledge for making out an invoice
Affected by the case of the minority shareholder
of the subsidiary, the inventory was wrongly
Inventory 149,679,547.48
seized, and the company did not give up the
claim, mortgage loan
Investment property 101,798,700.19 Mortgage loan
Mortgage loan, financing lease mortgage,
Fixed assets 1,393,456,049.65
original shareholder guarantee mortgage
Intangible assets 506,091,816.68 Mortgage loan, financing lease mortgage,
148
Closing carrying Reasons for the restriction
Item
value
original shareholder guarantee mortgage
Construction in
262,754,573.95 Mortgage loan, financing lease mortgage
progress
Total 3,509,725,160.79
68. Foreign currency monetary items
（1） Foreign currency monetary items
Item Balances
Foreign currency
denominated in RMB
balance at the end of Exchange rate
at the end of the
the Reporting Period
period
Monetary funds
Including: USD 195,999,137.08 7.2258 1,416,250,564.71
EUR 27,013.32 7.8771 212,786.62
EGP 48,519,595.32 0.2338 11,346,048.28
GBP 1.32 9.1432 12.07
HKD 10,959,014.64 0.9220 10,103,992.32
CAD 6.96 5.4721 38.09
PLN 1,969,461.89 1.7711 3,488,054.87
Accounts receivable
Including: USD 84,267,618.26 7.2258 608,900,956.02
EUR 47,944.52 7.8771 377,663.78
EGP 11,463,548.94 0.2338 2,680,689.71
HKD 24,063,672.25 0.9220 22,186,224.54
AUD 49,764.00 4.7992 238,827.39
Other accounts
receivable
Including: USD 110,937,713.61 7.2258 801,613,731.00
EGP 108,000.00 0.2338 25,255.22
HKD 1,627,550.19 0.9220 1,500,568.72
JPY 21,400,000.00 0.0501 1,072,011.60
Short-term loans
Including: USD
Accounts payable
Including: USD 29,303,729.18 7.2258 211,742,886.31
EUR 133,714.16 7.8771 1,053,279.81
149
Item Balances
Foreign currency
denominated in RMB
balance at the end of Exchange rate
at the end of the
the Reporting Period
period
EGP 42,216,229.19 0.2338 9,872,039.77
HKD 454,560.50 0.9220 419,095.69
Other payables
Including: USD 4,767,018.12 7.2258 34,445,519.53
EUR 59,956.16 7.8771 472,280.67
EGP 47,686.00 0.2338 11,151.12
HKD 5,995,982.70 0.9220 5,528,176.13
（2） Overseas entities
The significant overseas entities include Hongdin Trading, Hong Kong Konka, Chain Kingdom
Memory Technologies, Kangjietong, Jiali International, Kowin Memory (Hong Kong) and Konka
Mobility. The main overseas operating place is Hong Kong. The Company's recording currency is
HKD since the main currency in circulation in Hong Kong is HKD.
69. Government grants
(1) Overview of government subsidies
Amount recognised
Category Amount Presented item as profit and loss of
the Reporting Period
Industrial support funds to
40,000,000.00 Other income 40,000,000.00
Anlu Konka
Industrial support funds to
30,000,000.00 Other income 30,000,000.00
Xi'an
Subsidy for the Micro LED
R&D project of Chongqing
25,000,000.00 Deferred revenue
Optoelectronic Technology
Research Institute
Subsidy for Frestec
21,250,000.00 Deferred revenue
Refrigeration
Other income/deferred
Others 61,350,881.11 44,854,241.75
income, etc.
Total 177,600,881.11 114,854,241.75
(2) Return of Government Subsidy
No such cases in the Reporting Period.
150
VII. Changes of Consolidation Scope
1. Disposal of subsidiaries
The differences of
enjoyed net assets
share of the
The equity Equity subsidiary in
Equity
disposal disposal Control right Recognition basis of control right corresponding
Subsidiary disposal
price(RMB'0,000 proportio losing time point losing time point consolidated
method
) n (%) statements of the
disposal price and the
disposal investment
(RMB'0,000)
Sichuan
Hongxinchen The rights and obligations related
Real Estate 3,472.00 31 Transfer 2023-2-27 to the underlying equity have been 3,256.58
Development transferred
Co., Ltd.
(Continued)
Residual Recognition method Amount of other
Carrying value
equity Fair value of and major comprehensive
of residual Gains or losses from
proportion residual equity on assumptions of fair income related to
equity on the re-measurement of
Subsidiary on the date the date of losing value of remaining former subsidiaries
date of losing residual equity at fair
of losing control power equity on the day transferred into
control power value (RMB'0,000)
control (RMB'0,000) when the control investment profit or
(RMB'0,000)
power (%) right is lost loss (RMB'0,000)
Sichuan
Hongxinchen
Real Estate 49 340.51 5,488.00 5,147.49 Evaluated price
Development
Co., Ltd.
151
2. Changes in the scope of consolidation due to other reasons
（1） No subsidiaries were established by the Company from January to June 2023
（2） The Company's subsidiaries cancelled and with distribution of remaining assets
from January to June 2023
Registered capital Shareholding Liquidation
Subsidiary
(RMB'0,000) percentage (%) completion time
Anhui Zhilian 5,000 100 1 June 2023
152
八、 Interests in other entities
1. Interests in subsidiaries
(1) Composition of the business group
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Enterprise management consulting,
1 Guangdong, Guangdong, Establishment
Konka Ventures incubation management, housing 51
Shenzhen Shenzhen or investment
leasing, etc.
2 Other professional consultation and Establishment
Yantai Konka Shandong, Yantai Shandong, Yantai 51
investigation or investment
3 Sichuan, Sichuan, Establishment
Chengdu, Anren Enterprise incubation management 51
Chengdu Chengdu or investment
4 Konka Enterprise Guizhou, Guizhou, Establishment
Enterprise management consulting 51
Service Guiyang Guiyang or investment
Establishment
5 Yibin Konka Incubator Sichuan, Yibin Sichuan, Yibin Commercial services 51
or investment
6 Establishment
Anhui Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing 78
or investment
Establishment
7 Kangzhi Trade Anhui, Chuzhou Anhui, Chuzhou Wholesale 78
or investment
8 Guangdong, Guangdong, Insurance agents (non-bank Establishment
Konka Factoring 100
Shenzhen Shenzhen finance) or investment
Guangdong, Guangdong, Establishment
9 Konka Unifortune Trade and services 51
Shenzhen Shenzhen or investment
10 China, Hong China, Hong Establishment
Jiali International Trade and services 51
Kong Kong or investment
153
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Guangdong, Guangdong, Establishment
11 Wankaida Software development 100
Shenzhen Shenzhen or investment
12 Guangdong, Guangdong, Establishment
Dongguan Konka Manufacturing 75 25
Dongguan Dongguan or investment
13 Establishment
Suining Konka Smart Sichuan, Suining Sichuan, Suining Wholesale 100
or investment
14 Germany, Germany, Establishment
Konka Europe International trade 100
Frankfurt Frankfurt or investment
15 Telecommunication Guangdong, Guangdong, Establishment
Manufacturing 75 25
Technology Shenzhen Shenzhen or investment
16 China, Hong China, Hong Establishment
Konka Mobility Commerce 100
Kong Kong or investment
17 Guangdong, Guangdong, Establishment
Mobile Interconnection Commerce 100
Shenzhen Shenzhen or investment
18 Establishment
Sichuan Konka Sichuan, Yibin Sichuan, Yibin Manufacturing 100
or investment
19 Establishment
Yibin Smart Sichuan, Yibin Sichuan, Yibin Manufacturing 100
or investment
Establishment
20 Anhui Tongchuang Anhui, Chuzhou Anhui, Chuzhou Manufacturing 100
or investment
21 Anhui Electrical Establishment
Anhui, Chuzhou Anhui, Chuzhou Manufacturing 51
Appliance or investment
Establishment
22 Frestec Refrigeration Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
23 Establishment
Frestec Smart Home Henan, Xinxiang Henan, Xinxiang Manufacturing 51
or investment
154
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Frestec Electrical Establishment
24 Henan, Xinxiang Henan, Xinxiang Manufacturing 51
Appliances or investment
25 Frestec Household Establishment
Henan, Xinxiang Henan, Xinxiang Manufacturing 51
Appliances or investment
26 Jiangsu, Jiangsu, Establishment
Jiangsu Konka Smart Manufacturing 51
Changzhou Changzhou or investment
27 Establishment
Kangjiatong Sichuan, Yibin Sichuan, Yibin Trade and services 100
or investment
28 Guangdong, Guangdong, Establishment
Pengrun Technology Trade and services 51
Shenzhen Shenzhen or investment
29 China, Hong China, Hong Establishment
Jiaxin Technology Trade and services 51
Kong Kong or investment
30 Beijing Konka Establishment
Beijing Beijing Sale of home appliance 100
Electronic or investment
31 Tianjin Pilot Free Tianjin Pilot Free Establishment
Tianjin Konka Service Industry 100
Trade Zone Trade Zone or investment
32 Guangdong, Guangdong, Establishment
Konka Circuit Manufacturing 100
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
33 Boluo Precision Manufacturing 100
Boluo Boluo or investment
34 Guangdong, Guangdong, Establishment
Boluo Konka Manufacturing 100
Boluo Boluo or investment
China, Hong China, Hong Establishment
35 Hong Kong Konka International trade 100
Kong Kong or investment
36 China, Hong China, Hong Establishment
Hongdin Invest Investment holding 100
Kong Kong or investment
155
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Chain Kingdom Memory China, Hong China, Hong Establishment
37 International trade 51
Technologies Kong Kong or investment
Chain Kingdom Memory
Guangdong, Guangdong, Establishment
38 Technologies Trade and services 51
Shenzhen Shenzhen or investment
(Shenzhen)
39 China, Hong China, Hong Establishment
Hongjet Trade and services 51
Kong Kong or investment
40 China, Hong China, Hong Establishment
Hongdin Trading International trade 100
Kong Kong or investment
Establishment
41 Kanghao Technology Egypt, Cairo Egypt, Cairo International trade 67
or investment
America, America, Establishment
42 Konka North America International trade 100
California California or investment
Guangdong, Guangdong, Establishment
43 Konka Investment Capital market services 100
Shenzhen Shenzhen or investment
44 Yibin Konka Technology Industrial park development and Establishment
Sichuan, Yibin Sichuan, Yibin 100
Park operation management or investment
Guangdong, Guangdong, Establishment
45 Konka Capital Capital market services 100
Shenzhen Shenzhen or investment
46 Guangdong, Guangdong, Establishment
Konka Suiyong Commercial services 51
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Establishment
47 Shengxing Industrial Commercial services 51
Shenzhen Shenzhen or investment
48 Guangdong, Guangdong, Software and information Establishment
Zhitong Technology 51
Shenzhen Shenzhen technology services or investment
49 Electronics Technology Guangdong, Guangdong, Manufacturing 100 Establishment
156
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Shenzhen Shenzhen or investment
Guangdong, Guangdong, Software and information Establishment
50 Shenzhen Kangcheng 100
Shenzhen Shenzhen technology services or investment
51 Guangdong, Guangdong, Establishment
Xiaojia Technology Retail trade 100
Shenzhen Shenzhen or investment
52 Establishment
Haimen Konka Jiangsu, Nantong Jiangsu, Nantong Trade and services 100
or investment
53 Sichuan, Sichuan, Establishment
Chengdu Konka Smart Trade and services 100
Chengdu Chengdu or investment
54 Chengdu Konka Sichuan, Sichuan, Establishment
Manufacturing 100
Electronic Chengdu Chengdu or investment
55 Guangdong, Guangdong, Establishment
XingDa HongYe Manufacturing 51
Zhongshan Zhongshan or investment
56 Liaoyang Kangshun Liaoning, Liaoning, Establishment
Wholesale 100
Smart Liaoyang, Liaoyang or investment
57 Liaoyang Kangshun Liaoning, Liaoning, Comprehensive utilisation of Establishment
100
Renewable Liaoyang, Liaoyang renewable resources or investment
58 Establishment
Nanjing Konka Jiangsu, Nanjing Jiangsu, Nanjing Wholesale 100
or investment
Renewable resources processing Establishment
59 Konka Huanjia Liaoning, Dalian Liaoning, Dalian 51
trade or investment
60 Renewable resources processing Establishment
Konka Huanjia (Henan) Henan, Lankao Henan, Lankao 51
trade or investment
Establishment
61 Shanghai Konka Shanghai Shanghai Real estate 100
or investment
157
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Establishment
62 Yantai Kangjin Shandong, Yantai Shandong, Yantai Real estate 62.8
or investment
63 Establishment
Jiangxi Konka Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing 51
or investment
64 Xinfeng Jiangxi, Jiangxi, Establishment
Manufacturing and processing 51
Microcrystalline Nanchang Nanchang or investment
65 Jiangsu Konka Special Jiangsu, Jiangsu, Establishment
Wholesale 51
Material Yancheng Yancheng or investment
66 Guangdong, Guangdong, Establishment
Shenzhen Nianhua Commercial services 100
Shenzhen Shenzhen or investment
67 Guangdong, Guangdong, Establishment
Shenzhen KONSEMI Semiconductors 100
Shenzhen Shenzhen or investment
68 Software and information Establishment
Chongqing Konka Chongqing Chongqing 100
technology services or investment
69 Konka Guangdong, Guangdong, Establishment
Commercial services 51
Eco-Development Shenzhen Shenzhen or investment
70 Suining Konka Industrial Industrial park development and Establishment
Sichuan, Suining Sichuan, Suining 100
Park operation management or investment
Establishment
71 Konka Ronghe Zhejiang, Jiaxing Zhejiang, Jiaxing Wholesale and retail trade 51
or investment
Suining Electronic
72 Establishment
Technological Sichuan, Suining Sichuan, Suining Commercial services 100
or investment
Innovation
73 Shenzhen Chuangzhi Guangdong, Guangdong, Establishment
Wholesale 100
Electrical Appliances Shenzhen Shenzhen or investment
74 Kanghong (Yantai) Shandong, Yantai Shandong, Yantai Comprehensive utilisation of 51 Establishment
158
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Environmental abandoned resources or investment
Protection
Recycling, processing and sales of Establishment
75 Chongqing Kangxingrui Chongqing Chongqing 51
renewable resources or investment
Chongqing Kangxingrui Recycling, processing and sales of Establishment
76 Chongqing Chongqing 51
Automobile Recycling waste resources or investment
Chongqing
Research & experiment Establishment
77 Optoelectronic Chongqing Chongqing 70 5
development or investment
Technology
Computer, telecommunications and
Kowin Memory Guangdong, Guangdong, Establishment
78 other electronic equipment 100
(Shenzhen) Shenzhen Shenzhen or investment
manufacturing
Computer, telecommunications and
Konka Xinyun Jiangsu, Jiangsu, Establishment
79 other electronic equipment 100
Semiconductor Yancheng Yancheng or investment
manufacturing
80 Jiangkang (Shanghai) Research & experiment Establishment
Shanghai Shanghai 51
Technology development or investment
Ningbo Kanghr Electrical machinery and Establishment
81 Zhejiang, Ningbo Zhejiang, Ningbo 60
Electrical Appliance equipment manufacturing or investment
Konka Intelligent Guangdong, Guangdong, Research & experiment Establishment
82 51
Manufacturing Shenzhen Shenzhen development or investment
83 Establishment
Suining Jiarun Property Sichuan, Suining Sichuan, Suining Real estate 100
or investment
84 Yibin Kangrun Sichuan, Yibin Sichuan, Yibin Ecological protection and 67 Establishment
159
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
environmental governance services or investment
Establishment
85 Konka Material Hainan, Haikou Hainan, Haikou Commercial services 100
or investment
86 Jiangxi High Transparent Establishment
Jiangxi, Jiujiang Jiangxi, Jiujiang Manufacturing and processing 51
Substrate or investment
Computer, telecommunications and
87 Establishment
Nantong Hongdin Jiangsu, Nantong Jiangsu, Nantong other electronic equipment 100
or investment
manufacturing
88 Establishment
Chuzhou Konka Anhui, Chuzhou Anhui, Chuzhou Manufacturing 94.9
or investment
Establishment
89 Konka Soft Electronic Sichuan, Suining Sichuan, Suining Manufacturing 97.5
or investment
Konka Hongye Establishment
90 Sichuan, Suining Sichuan, Suining Manufacturing 95.05
Electronics or investment
Kowin Memory (Hong China, Hong China, Hong Wholesale of computers, software Establishment
91 100
Kong) Kong Kong and auxiliary equipment or investment
92 Industrial and Trade Guangdong, Guangdong, Establishment
Wholesale 100
Technology Shenzhen Shenzhen or investment
Hunan, Hunan, Establishment
93 Konka Huazhong Commercial services 100
Changsha Changsha or investment
94 Ecological protection and Establishment
Yibin Kangrun Medical Sichuan, Yibin Sichuan, Yibin 63.65
environmental governance services or investment
Yibin Kangrun
95 Ecological protection and Establishment
Environmental Sichuan, Yibin Sichuan, Yibin 40.87
environmental governance services or investment
Protection
160
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Shaanxi Konka Manufacture of household cleaning Establishment
96 Shaanxi, Xi'an Shaanxi, Xi'an 51
Intelligent and sanitary electrical appliances or investment
97 Chongqing Xinyuan Science and technology promotion Establishment
Chongqing Chongqing 75
Semiconductor and application services or investment
98 Guangdong, Guangdong, Software and information Establishment
Anlu Konka 100
Shenzhen Shenzhen technology services or investment
99 Guangdong, Guangdong, Establishment
Kanghong Dongsheng Commercial services 95.09
Shenzhen Shenzhen or investment
Guizhou, Guizhou,
Qiannan Buyi Qiannan Buyi
Guizhou Konka New Establishment
100 and Miao and Miao Manufacturing and processing 51
Material Technology or investment
Autonomous Autonomous
Prefecture Prefecture
Guizhou, Guizhou,
Qiannan Buyi Qiannan Buyi
Guizhou Kanggui Establishment
101 and Miao and Miao Wholesale and retail trade 100
Energy or investment
Autonomous Autonomous
Prefecture Prefecture
Guangdong, Guangdong, Establishment
102 Guangdong Xinwei Semiconductors 100
Lvfeng Lvfeng or investment
103 Kangxinrun Renewable Recycling, processing and sales of Establishment
Chongqing Chongqing 51
Resources renewable resources or investment
Guizhou, Guizhou,
Qiannan Buyi Qiannan Buyi
Guizhou Kanggui Establishment
104 and Miao and Miao Manufacturing and processing 70
Material Technology or investment
Autonomous Autonomous
Prefecture Prefecture
161
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Establishment
105 Nantong Kanghai Jiangsu, Nantong Jiangsu, Nantong Real estate 51
or investment
106 Establishment
Chongqing Kangyiyun Chongqing Chongqing Real estate 80
or investment
107 Jiangxi Konka High-tech Jiangxi, Jiangxi, Establishment
Commercial services 100
Park Shangrao Shangrao or investment
Shangrao Konka
Jiangxi, Jiangxi, Research & experiment Establishment
108 Electronic Technology 100
Shangrao Shangrao development or investment
Innovation
Guizhou Konka New Manufacture of non-metallic Establishment
109 Guizhou, Kaili Guizhou, Kaili 98
Energy mineral products or investment
Zhejiang Konka Zhejiang, Zhejiang, Research & experiment Establishment
110 100
Electronic Shaoxing Shaoxing development or investment
Zhejiang Konka Zhejiang, Zhejiang, Establishment
111 Commercial services 51 49
Technology Industry Shaoxing Shaoxing or investment
112 Establishment
Xi'an Konka Intelligent Shaanxi, Xi'an Shaanxi, Xi'an Wholesale 51
or investment
Computer, telecommunications and
113 Establishment
Xi'an Konka Network Shaanxi, Xi'an Shaanxi, Xi'an other electronic equipment 100
or investment
manufacturing
Xi'an Kanghong Establishment
114 Shaanxi, Xi'an Shaanxi, Xi'an Commercial services 40 60
Technology Industry or investment
Xi'an Konka Intelligent Establishment
115 Shaanxi, Xi'an Shaanxi, Xi'an Retail trade 100
Technology or investment
Chongqing Konka Low Establishment
116 Chongqing Chongqing Wholesale 55
Carbon or investment
162
Shareholding
Main place of Place of percentage (%) Acquisition
No. Subsidiary Business nature
business registration method
Direct Indirect
Guangdong, Guangdong, Establishment
117 Kanghong Xintong Commercial services 95.09
Shenzhen Shenzhen or investment
Songyang Industry Software and information Establishment
118 Zhejiang, Lishui Zhejiang, Lishui 51
Operation technology services or investment
Computer, telecommunications and
Guangdong, Guangdong, Establishment
119 Kangyan Technology other electronic equipment 100
Shenzhen Shenzhen or investment
manufacturing
Konka Photovoltaic Zhejiang, Zhejiang, Science and technology promotion Establishment
120 60
Technology Hangzhou Hangzhou and application services or investment
Songyang Konka Establishment
121 Zhejiang, Lishui Zhejiang, Lishui Wholesale 100
Intelligent or investment
Electrical machinery and Establishment
122 Konka North China Tianjin Tianjin 100
equipment manufacturing or investment
Computer, telecommunications and
Guangdong, Guangdong, Establishment
123 Zhongshan Kanghong other electronic equipment 51
Zhongshan Zhongshan or investment
manufacturing
Guangdong, Guangdong, Software and information Establishment
124 Digital Technology 100
Shenzhen Shenzhen technology services or investment
（1） Major non-wholly-owned subsidiaries
Profit or loss Dividends declared to
attributable to be distributed to Closing balance of
Shareholding of
Subsidiary minority minority shareholders minority shareholders'
minority shareholders
shareholders in the in the Reporting equities
Reporting Period Period
Anhui Konka Electronic Co., Ltd. 22.00% -2,653,734.78 122,251,966.99
163
（2） Key financial data on major non-wholly-owned subsidiaries
Closing balance
Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Anhui Konka
2,936,026,320.29 868,495,196.06 3,804,521,516.35 3,061,042,160.51 187,788,596.78 3,248,830,757.29
Electronic Co., Ltd.
(Continued)
Opening balance
Subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Anhui Konka
1,128,527,494.45 876,466,424.50 2,004,993,918.95 1,231,359,349.01 205,826,622.59 1,437,185,971.60
Electronic Co., Ltd.
(Continued)
Amount incurred in the Reporting Period
Subsidiary Total comprehensive Cash flows from
Operating income Net profit
income operating activities
Anhui Konka Electronic Co., Ltd. 972,416,661.43 -12,062,430.83 -12,062,430.83 6,806,364.98
(Continued)
Amount incurred in the previous period
Subsidiary Total comprehensive Cash flows from
Operating income Net profit
income operating activities
164
Amount incurred in the previous period
Subsidiary Total comprehensive Cash flows from
Operating income Net profit
income operating activities
Anhui Konka Electronic Co., Ltd. 2,943,030,518.60 -1,594,092.50 -1,594,092.50 6,078,558.09
165
2. Interests in joint ventures or associated enterprises
（1） Major joint ventures or associated enterprises
Shareholding Accounting
percentage (%) processing
Name of the
method for
joint Main
Place of Business investment in
venture or place of
registration nature joint
associated business Direct Indirect ventures or
enterprise
associated
enterprises
Dongfang
Jiakang No.1
(Zhuhai)
Investment Equity
Private Zhuhai Zhuhai 49.95
management method
Equity
Investment
Fund (LP)
Shenzhen
Professional
Jielunte Equity
Shenzhen Shenzhen machinery 42.79
Technology method
manufacturing
Co., Ltd.
(2) Main financial information of significant associated enterprise
Closing balance/amount incurred in the Reporting
Period
Item Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 974,113,527.00 267,654,771.54
Non-current assets 316,561,987.27
Total assets 974,113,527.00 584,216,758.81
Current liabilities 10,001,480.00 249,764,867.78
Non-current liabilities 114,249,555.56
Total liabilities 10,001,480.00 364,014,423.34
Equities of minority shareholders 10,838,453.25
Equities attributable to shareholders of
the parent company 964,112,047.00 209,363,882.22
Share of net assets calculated based on
the shareholding 479,962,498.20 95,588,971.94
Adjustments
- Goodwill
- Internal unrealised profit
- Others
Carrying value of equity investments 479,962,498.20 95,588,971.94
166
Closing balance/amount incurred in the Reporting
Period
Item Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
in associated enterprises
Fair values of equity investments of
joint ventures with quoted prices
Operating income 168,815,683.51
Finance costs -284,133.17 1,539,262.28
Income tax expense 2,245,248.55
Net profit 25,641,054.77 -13,237,135.87
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income 25,641,054.77 -13,237,135.87
Dividends received from the joint
venture in the Reporting Period
(Continued)
Opening balance/amount incurred in the previous
period
Item Dongfang Jiakang No.1
Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co., Ltd.
Investment Fund (LP)
Current assets 971,913,521.98 253,227,910.38
Non-current assets 288,320,463.89
Total assets 971,913,521.98 541,548,374.27
Current liabilities 3,340.00 233,990,644.75
Non-current liabilities 74,263,430.52
Total liabilities 3,340.00 308,254,075.27
Equities of minority shareholders 12,856,913.14
Equities attributable to shareholders of
the parent company 971,910,181.98 220,437,385.86
Share of net assets calculated based on
the shareholding 483,905,786.35 99,748,594.97
Adjustments
- Goodwill
- Internal unrealised profit
- Others
Carrying value of equity investments 483,905,786.35 99,748,594.97
167
in associated enterprises
Fair values of equity investments of
joint ventures with quoted prices
Operating income 182,061,953.26
Finance costs -229,796.85 -1,371,564.48
Income tax expense -1,984,423.47
Net profit -2,383,969.26 248,699.00
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -2,383,969.26 248,699.00
Dividends received from the joint
venture in the Reporting Period
(3) Combined financial data on insignificant joint ventures and associated enterprises
Closing balance/amount Opening balance/amount
Item incurred in the incurred in the previous
Reporting Period period
Associated enterprises
Total carrying value of investment 5,312,570,959.14 5,767,578,574.26
The total of following items according
to the shareholding proportions
Net profit -37,153,622.36 60,936,191.32
Other comprehensive income -38,929.34
Total comprehensive income -37,153,622.36 60,897,261.98
IX. The Risk Related to Financial Instruments
The Company's main financial instruments include borrowings, accounts receivable,
accounts payable, trading financial assets and liabilities, etc. Please refer to Note VI for detailed
descriptions of various financial instruments. The risks related to these financial instruments and
the risk management policies adopted by the Company to mitigate these risks are described below.
The Management of the Company manages and monitors these risk exposures to ensure that these
risks are controlled within a limited scope.
1. Various risk management objectives and policies
The goals of the Company engaged in the risk management are to achieve the proper balance
between the risks and benefits, reduce the negative impact to the Company operating performance
risk to a minimum, and maximise the profits of shareholders and other equity investors. Based on
the risk management goal, the basic strategy of the Company's risk management is determining
and analysing the various risks faced by the Company, setting up the bottom line of risk and
168
conducting appropriate risk management, and timely supervising various risks in a reliable way
and controlling the risk within the range of limit.
(1) Market risk
1) Foreign exchange risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in
exchange rate. The foreign exchange risk borne by the Company is related to USD. Except the
procurement and sales in USD of the Company's subsidiaries Hong Kong Konka, Hongdin
Trading, Chain Kingdom Memory Technologies, Hongjet and Jiali, the Company's other primary
business activities are settled in RMB. The currency risk arising from the assets and liabilities of
such balance in USD may affect the Group's operating results. As of 30 June 2023, the Company's
assets and liabilities were mainly the balance in RMB except for the assets or liabilities of a
balance in USD as listed below.
Balance at the end of the Balance at the
Item
period beginning of the period
Monetary funds 195,999,137.08 106,315,046.38
Accounts receivable 84,267,618.26 86,909,542.13
Other accounts receivable 110,937,713.61 111,545,094.65
Short-term loans 15,090,462.34
Accounts payable 29,303,729.18 24,084,328.20
Other payables 4,767,018.12 205,546.18
Interest payable 10,875.01
The Company pays close attention to the impact of exchange rate changes on the Company's
foreign exchange risk, and requires major companies in the Group that purchase and sell in
foreign currency to pay attention to the changes in foreign currency assets and liabilities, manage
the Group's foreign currency net asset exposure in a unified way, implement single currency
settlement, and reduce the scale of foreign currency assets and liabilities, so as to reduce foreign
exchange risk exposure.
2) Interest rate risk
The Company bears interest rate risk due to interest rate changes of interest-bearing financial
assets and liabilities. The Company's interest bearing financial assets are mainly bank deposits, of
which the variable interest rate is mostly short-term, while the interest bearing financial liabilities
are mainly bank loans and corporate bonds. The Company's long-term borrowings from banks
and corporation bonds are at fixed interest rates. The risk of cash flow changes of financial
instruments caused by interest rate changes is mainly related to short-term borrowings from banks
with floating interest rates. The Company's policy is to maintain the floating interest rates of such
borrowings to eliminate the fair value risk of interest rate changes. As of 30 June 2023, the
169
balance of such short-term borrowings was RMB6,779,845,746.13.
(2) Credit risk
As of 30 June 2023, the maximum credit risk exposure that may cause financial losses to the
Company mainly came from losses generated from the Company's financial assets due to failure
of the other party in a contract to perform its obligations and the financial guarantee undertaken
by the Company, including:
The carrying amount of financial assets recognised in the consolidated balance sheet; for
financial instruments measured at fair value, the book value reflects their risk exposure, but not
the maximum risk exposure, and the maximum risk exposure will change with the change of
future fair value.
In order to reduce credit risk, the Company has set up a group to determine the credit limit,
conduct credit approval, and implement other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition, the Company reviews the recovery of
each single receivable on each balance sheet date to ensure that sufficient provision for bad debts
is made for the unrecoverable amount. Therefore, the Company's management believes that the
Company's credit risk has been greatly reduced.
The Company's working capital is deposited in banks with a high credit rating, so the credit
risk of working capital is low.
The Company has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable, the
Company has no other major credit concentration risk. For the financial assets of the Company
that have been individually impaired, please refer to 4. Accounts Receivable and 7. Other
Receivables in Note VI.
(3) Liquidity risk
Liquidity risk refers to the risk that the Company is unable to fulfil its financial obligations
on the due date. The Company manages liquidity risk in the method of ensuring that there is
sufficient liquidity to fulfil debt obligations without causing unacceptable loss or damage to the
Company's reputation. In order to mitigate the liquidity risk, the Management of the Company
has carried out a detailed inspection on the liquidity of the company, including the maturity of
accounts payable and other payables, bank credit line and bond financing. The conclusion is that
the Company has sufficient funds to meet the needs of the Group's short-term debts and capital
expenditure.
The analysis of the financial assets and financial liabilities held by the Company based on
the maturity period of the undiscounted remaining contractual obligations is as follows:
170
Amount as of 30 June 2023:
Item Within one year One to two years Two to five years Over five years Total
Financial assets
Monetary funds 6,908,338,806.16 6,908,338,806.16
Held-for-trading financial
assets 743,307,489.50 743,307,489.50
Notes receivable 593,966,294.88 593,966,294.88
Accounts receivable 1,637,812,189.62 207,340,829.26 242,781,248.64 60,288.01 2,087,994,555.53
Other accounts receivable 538,800,413.35 245,611,216.94 631,274,801.06 16,280.00 1,415,702,711.35
Current portion of
non-current assets 3,630,000.00 3,630,000.00
Long-term receivables 800,400.00 800,400.00
Other current assets 2,418,192,160.84 2,418,192,160.84
Financial liabilities
Short-term loans 6,779,845,746.13 6,779,845,746.13
Notes payable 1,156,546,919.70 1,156,546,919.70
Accounts payable 2,576,717,410.79 102,890,328.05 243,352,180.52 4,025,966.96 2,926,985,886.32
Other payables 1,244,725,162.97 171,062,266.84 273,145,282.32 39,705,128.63 1,728,637,840.76
Payroll payable 182,043,941.42 182,043,941.42
Non-current liabilities due
within one year 5,320,279,660.98 5,320,279,660.98
Long-term loans 3,619,780,819.43 2,967,359,468.60 586,268,212.71 7,173,408,500.74
Bonds payable 830,105,052.33 2,465,451,823.93 3,295,556,876.26
Long-term payables 1,562,290.65 5,310,831.86 6,873,122.51
171
2. Sensitivity analysis
The Company adopts sensitivity analysis technology to analyse the possible impact of
reasonable and possible changes of risk variables on current profits/losses or shareholders' equity.
As any risk variable rarely changes in isolation, and the correlation between variables will have a
significant effect on the final impact amount of the change of a risk variable, the following
content is based on the assumption that the change of each variable is independent.
(1) Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash
flow hedging of overseas operations are highly effective.
On the basis of the above assumption, under the condition that other variables remain
unchanged, the impact of reasonable changes in the exchange rate on current profits/losses and
equity after tax is as follows:
Closing balance
Exchange rate
Item Impact on shareholders'
fluctuations Impact on net profit
equity
Appreciation of 1%
USD 22,249,707.57 17,750,467.03
against RMB
Depreciation of 1%
USD -22,249,707.57 -17,750,467.03
against RMB
(2) Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial
instruments with variable interest rates;
For financial instruments with fixed interest rates measured at fair value, market interest rate
changes affect only their interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets and
liabilities are calculated at the market interest rate on the balance sheet date by discounted cash
flow.
On the basis of the above assumptions and under the condition that other variables remain
unchanged, the impact of reasonable changes in the interest rate on current profits/losses and
equity after tax is as follows:
Closing balance
Interest rate
Item Impact on shareholders'
fluctuations Impact on net profit
equity
Borrowings at Up 0.5% -25,773,357.94 -24,732,737.56
floating interest
172
rates
Borrowings at
floating interest Down 0.5% 25,773,357.94 24,732,737.56
rates
173
X. The Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Closing fair value
Item Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
I. Continuous fair value measurement
(I) Held-for-trading financial assets
1. Financial assets measured at fair value through profit
and loss for the Reporting Period
(II) Accounts receivable financing 344,155,903.39 344,155,903.39
(III) Other equity investments
(IV) Other equity instrument investment 23,841,337.16 23,841,337.16
(V) Investment properties
(VI) Biological assets
(VII) Other non-current financial assets 2,113,570,574.02 2,113,570,574.02
Total assets continuously measured at fair value 344,155,903.39 2,137,411,911.18 2,481,567,814.57
Total liabilities continuously measured at fair value
II. Non-continuous fair value measurement
Total assets not continuously measured at fair value
Total liabilities not continuously measured at fair
value
174
2. Basis for determining the market price of continuous and non-continuous level-1 fair
value measurement projects
The first level of the input is an unadjusted quoted price in an active market for the same
assets and liabilities available on the measurement date.
3. Qualitative and quantitative data on valuation techniques and important parameters
adopted for continuous and non-continuous level-2 fair value measurement projects
The Level 2 fair value measurement of input value at Level 2 is the input value observable
directly or indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Qualitative and quantitative data on valuation techniques and important parameters
adopted for continuous and non-continuous level-3 fair value measurement projects
The third level of the input is the unobservable input of related assets and liabilities.
XI. Related Party and Related-party Transaction
（一） Related party relationship
1. Controlling shareholder and the ultimate controller
（1） Controlling shareholder and the ultimate controller
Sharehold Voting
Place
ing ratio right ratio
of Registere
Name Business nature to the to the
registra d capital
Company Company
tion
(%) (%)
OCT Group Shenzh Tourism, real estate, RMB12
29.999997 29.999997
Co. Ltd. en electronics industry billion
Note: The ultimate controller of the Company is State-owned Assets Supervisor Commission of
the State Council.
（2） Registered capital of the controlling shareholder and its changes
Opening balance Increase Decrease Closing balance
Controlling in the in the
shareholders Reporting Reporting
Period Period
OCT Group Co. Ltd. 12,000,000,000.00 12,000,000,000.00
（3） Controlling shareholders' shares or equity and their changes
Shareholding amount Shareholding percentage
Controlling (%)
shareholders Closing balance Opening balance Ending Opening
percentage percentage
OCT Group Co. Ltd. 722,383,542.00 722,383,542.00 29.999997 29.999997
175
2. Subsidiary
Refer to note VIII-1. (1) Subsidiaries for the information of subsidiaries.
3. Associated enterprises and joint ventures
Refer to Note VIII-2. (1) Significant Associated Enterprises for details of significant
associated enterprises of the Company. Information on other joint ventures or associated
enterprises occurring connected transactions with the Company in Reporting Period, or forming
balance due to connected transactions made in previous period:
Name Relationship with the Company
Anhui Kaikai Shijie E-commerce Co., Ltd. Associate
Anhui Kangta Supply Chain Management Co.,
Associate
Ltd.
Chuzhou Kangxin Health Industry
Associate
Development Co., Ltd.
Orient Excellent (Zhuhai) Asset Management
Associate
Co., Ltd.
Dongguan Kangzhihui Electronics Co., Ltd. Associate
Dongguan Guankang Hongyu Investment Co., Ltd. Associate
Feidi Technology (Shenzhen) Co., Ltd. Associate
Guangdong Kangyuan Semiconductor Co. , Ltd. Associate
Hefei KONSEMI Storage Technology Co., Ltd. Associate
Henan Kangfei Intelligent Electrical Appliances Co., Ltd. Associate
Kangkong Venture Capital (Shenzhen) Co., Ltd. Associate
Puchuang Jiakang Technology Co, Ltd. Associate
Shandong Kangfei Intelligent Electrical Appliances Co.,
Associate
Ltd.
Shenzhen Aimijiakang Technology Co., Ltd. Associate
Shenzhen Jielunte Technology Co., Ltd. Associate
Shenzhen Kanghongxing Smart Technology Co., Ltd. Associate
Shenzhen Kopen Digital Technology Co., Ltd. Associate
Shenzhen Konda E-display Co., Ltd. Associate
Shenzhen Kangying Semiconductor Technology Co., Ltd. Associate
Shenzhen Morsemi Semiconductor Technology Co., Ltd. Associate
Shenzhen Konka Jiapin Intelligent Electrical Apparatus
Associate
Co., Ltd.
Shenzhen Kangxi Technology Innovation Development
Associate
Co., Ltd.
Shenzhen RF-Llink Technology Co., Ltd. Associate
176
Name Relationship with the Company
Shenzhen Yaode Technology Co., Ltd. Associate
Sichuan Chengrui Real Estate Co., Ltd. Associate
Sichuan Hongxinchen Real Estate
Associate
Development Co., Ltd.
Sichuan Huayi Jiakang Technology Co., Ltd. Associate
Wuhan Kangtang Information Technology Co.,
Associate
Ltd.
Yantai Kangyun Industrial Development Co., Ltd. Associate
Yancheng Kangyan Information Industry Investment
Associate
Partnership (Limited Partnership)
E3info (Hainan) Technology Co., Ltd. Associate
Chongqing Kangjian Photoelectric Technology
Associate
Co., Ltd.
Chongqing Qingjia Electronics Co., Ltd. Associate
Anhui Kangfu New Energy Co., Ltd. Associate
Chutian Dragon Co., Ltd. Associate
Shenzhen Zhongkang Beidou Technology Co.,
Ltd. (formerly named: Shenzhen Zhongbing Associate
Konka Technology Co., Ltd.)
KK Smartech Limited Associate
Shandong Econ Technology Co., Ltd. Associate
Dongguan Kangjia New Materials Technology
Associate
Co., Ltd.
Nantong Kangjian Technology Industrial Park
Associate
Operations and Management Co., Ltd.
4. Other related parties
Names of other related parties Relationship with the Company
HOHOELECTRICAL&FURNITURECO.,LIM
ITED Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co., Ltd. Minority shareholder of subsidiary
Chuzhou Hanshang Electric Appliance Co.,
Minority shareholder of subsidiary
Ltd.
Korea Electric Group Co., Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Shanghai SUS Environment Co.,Ltd. Minority shareholder of subsidiary
Shenzhen New Journey Energy Conservation
Minority shareholder of subsidiary
and Environmental Protection Service Co., Ltd.
177
Names of other related parties Relationship with the Company
Central Enterprises in poverty-stricken
areas(Jiangxi)Industrial Investment Funds Minority shareholder of subsidiary
Partnership(L.P.)
Chongqing Liangshan Industrial Investment
Minority shareholder of subsidiary
Co., Ltd.
The company controlled by the ultimate
Jiangxi Meiji Enterprise Co., Ltd. controller of the minority shareholders of the
subsidiary
Dai Rongxing Close family members of minority shareholders
AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise
Huanjia Group Co., Ltd. Minority shareholder of subsidiary
Yantai Kangyue Investment Co., Ltd. Subsidiary of associated enterprise
Chongqing Lanlv Moma Real Estate
Subsidiary of associated enterprise
Development Co., Ltd.
（二） Related-party transactions
1. Related party transactions involving the purchase and sale of goods and the supply and
acceptance of services
（1） Purchasing goods/receiving services
Amount incurred Amount incurred
Related party
Related party in the Reporting in the previous
transaction
Period period
Purchase of
Chuzhou Hanshang Electric Appliance Co., Ltd. 186,735,395.72 181,578,952.60
goods
Purchase of
Puchuang Jiakang Technology Co, Ltd. 82,483,825.77 150,151,893.73
goods
Purchase of
OCT Group Co., Ltd. and its
goods and 19,556,218.59 25,346,178.36
subsidiaries and associates
services
Shenzhen Jielunte Technology Co., Purchase of
Ltd. and its subsidiaries as well as its goods and 17,989,178.13 13,992,143.62
associated enterprises services
Anhui Kaikai Shijie E-commerce Co., Purchase of
14,519,171.29 21,234.50
Ltd. and its subsidiaries goods
Korea Electric Group Co., Ltd. and its Purchase of
13,962,407.67 18,805,740.79
subsidiaries goods
Shenzhen Konda E-display Co., Ltd. Purchase of
10,289,325.37 8,959,207.84
and its subsidiaries goods
Dongguan Kangjia New Material Purchase of
7,656,559.11 6,976,616.01
Technology Co., Ltd. goods
178
Amount incurred Amount incurred
Related party
Related party in the Reporting in the previous
transaction
Period period
Purchase of
KK Smartech Limited 7,026,770.10
goods
Purchase of
Dongguan Konka Smart Electronic
goods and 5,303,236.99 13,821,902.86
Technology Co., Ltd.
services
HOHOELECTRICAL&FURNITURE Purchase of
5,279,694.58 9,072,974.63
CO.,LIMITED goods
Purchase of
Chongqing Ruiyin Renewable
goods and 541,543,811.51
Resources Co., Ltd. and its subsidiaries
services
Shenzhen Kangying Semiconductor
Purchase of
Technology Co., Ltd. and its 4,317,763.40 8,145,702.87
goods
subsidiaries
Purchase of
Subtotal of other related parties goods and 6,384,913.67 2,468,604.98
services
（2） Information of sales of goods and provision of labour service
Related Amount incurred Amount
Related party party in the Reporting incurred in the
transaction Period previous period
Sales of
Chuzhou Hanshang Electric Appliance Co., goods and
87,808,617.20 35,546,108.63
Ltd. provision of
labor service
Sales of
Korea Electric Group Co., Ltd. and its goods and
61,575,942.67 117,013,253.39
subsidiaries provision of
labor service
Sales of
Anhui Kaikai Shijie E-commerce Co., Ltd. goods and
43,083,217.15 86,686,831.47
and its subsidiaries provision of
labor service
Sales of
OCT Group Co., Ltd. and its subsidiaries goods and
31,848,071.22 133,512,390.92
and associates provision of
labor service
Sales of
Shenzhen Jielunte Technology Co., Ltd.
goods and
and its subsidiaries as well as its associated 31,298,689.17 13,440,177.22
provision of
enterprises
labor service
Shandong Kangfei Intelligent Electrical
销售商品 20,835,714.08 21,685,823.71
Appliances Co., Ltd.
179
Related Amount incurred Amount
Related party party in the Reporting incurred in the
transaction Period previous period
Sales of
Shenzhen Konda E-display Co., Ltd. and goods and
9,771,563.23 14,036,782.18
its subsidiaries provision of
labor service
Sales of
E3info (Hainan) Technology Co., Ltd. and goods and
9,168,670.42 563,757.57
its subsidiaries provision of
labor service
Sales of
Hefei KONSEMI Storage Technology Co., goods and
8,004,252.90 42,085,293.63
Ltd. provision of
labor service
Sales of
Shenzhen Kangying Semiconductor goods and
5,789,685.32 8,803,735.07
Technology Co., Ltd. and its subsidiaries provision of
labor service
Sales of
Dongguan Konka Smart Electronic goods and
5,049,897.52 12,592,625.44
Technology Co., Ltd. provision of
labor service
Shenzhen Aimijiakang Technology Co., Sales of
1,453,563.03 25,833,743.92
Ltd. goods
HOHOELECTRICAL&FURNITURECO., Sales of
15,922,314.20
LIMITED goods
Nantong Kangjian Technology Industrial Provision of
14,150,943.39
Park Operations and Management Co., Ltd. labor service
Henan Kangfei Intelligent Electrical Sales of
12,773,438.03
Appliances Co., Ltd. goods
Sales of
goods and
Subtotal of other related parties 8,788,964.79 6,726,787.89
provision of
labor service
2. Related party leases
（1） Lease situation
The lease fee
The lease fee
Type of recognized in the
recognised in
Lessor Lessee leased same period of
the Reporting
assets the previous
Period
year
Dongguan
Guankang Yuhong Dongguan Konka
Factory 22,799,157.95
Investment Co., Electronic Co., Ltd.
Ltd.
OCT Group Co. Konka Ventures Commercial 14,099,760.00 11,610,366.36
180
The lease fee
The lease fee
Type of recognized in the
recognised in
Lessor Lessee leased same period of
the Reporting
assets the previous
Period
year
Ltd. and its Development residences
subsidiaries (Shenzhen) Co., and office
Ltd. buildings
Commercial
OCT Group Co.
Konka Group Co., residences
Ltd. and its 351,831.90 755,425.60
Ltd. and office
subsidiaries
buildings
3. Related party guarantees
（1） The Company was guarantor
Contracte
Actual Whether
d
guarantee Cu Start date Expiry the
guarantee
Secured party amount rre of date of guarantee
amount
(RMB'0,0 ncy guarantee guarantee is
(RMB'0,0
00) completed
00)
CN 19 August 19 August
Boluo Precision 2,480.11 191.67 No
Y 2020 2023
CN 25 August 24 August
Boluo Precision 3,000.00 3,000.00 No
Y 2022 2023
CN 19 January 18 January
Boluo Precision 4,000.00 1,800.00 No
Y 2023 2024
CN 2 March 2 March
Boluo Precision 3,000.00 1,795.79 No
Y 2023 2026
30
CN 24 May
Konka Circuit 20,000.00 5,999.28 November No
Y 2021
2024
14 13
CN
Konka Circuit 5,000.00 3,676.77 September September No
Y
2022 2023
CN
Anhui Tongchuang 3,000.00 3,000.00 2 June 2022 1 June 2023 No
Y
CN
Anhui Tongchuang 5,000.00 5 July 2022 4 July 2023 No
Y
CN 19 October 19 October
Anhui Tongchuang 10,000.00 9,800.00 No
Y 2022 2023
CN 6 February 5 February
Anhui Tongchuang 10,000.00 8,000.00 No
Y 2023 2024
Liaoyang CN 6 January 5 January
5,000.00 3,000.00 No
Kangshun Smart Y 2023 2024
Konka Xinyun CN 26 May 25 May
6,000.00 1,000.00 No
Semiconductor Y 2022 2024
181
Contracte
Actual Whether
d
guarantee Cu Start date Expiry the
guarantee
Secured party amount rre of date of guarantee
amount
(RMB'0,0 ncy guarantee guarantee is
(RMB'0,0
00) completed
00)
Konka Xinyun CN 12 July 11 July
20,000.00 6,083.91 No
Semiconductor Y 2021 2022
24
Electronics CN 10 January
8,500.00 8,385.38 November No
Technology Y 2024
2022
Electronics CN 10 October 21 July
50,000.00 50,000.00 No
Technology Y 2022 2023
CN 24 March 23 March
Dongguan Konka 5,000.00 5,000.00 No
Y 2023 2024
CN 23 June
Dongguan Konka 80,000.00 33,215.76 7 May 2031 No
Y 2021
Telecommunicatio CN 20 May 20 May
7,500.00 3,494.93 No
n Technology Y 2022 2023
CN 23 May 26 April
Sichuan Konka 4,000.00 3,000.00 No
Y 2023 2026
Mobile CN 11 August 11 August
7,000.00 4,000.00 No
Interconnection Y 2022 2023
CN 23 May 26 April
Yibin Smart 980.00 980.00 No
Y 2023 2024
13 13
CN
Chongqing Konka 38,000.00 7,793.11 December December No
Y
2022 2037
Xi'an Kanghong 31
CN 26 May
Technology 30,000.00 December No
Y 2023
Industry 2032
25 25
CN
XingDa HongYe 2,000.00 353.89 December December No
Y
2020 2023
CN 31 May 31 August
XingDa HongYe 750.00 87.55 No
Y 2021 2023
19 19
Konka Soft CN
975.00 48.37 December December No
Electronic Y
2022 2023
Ningbo Khr CN 12 August 27 July
6,000.00 3,735.71 No
Electric Appliance Y 2021 2023
Ningbo Khr CN 12 July 11 July
6,000.00 3,000.00 No
Electric Appliance Y 2022 2023
Frestec Smart CN
10,200.00 510.00 6 July 2022 4 May 2030 No
Home Y
CN 6 November 1 December
Jiangxi Konka 10,000.00 3,000.00 No
Y 2020 2023
182
Contracte
Actual Whether
d
guarantee Cu Start date Expiry the
guarantee
Secured party amount rre of date of guarantee
amount
(RMB'0,0 ncy guarantee guarantee is
(RMB'0,0
00) completed
00)
CN 26 June 25 June
Jiangxi Konka 6,000.00 5,000.00 No
Y 2022 2023
CN 10 March 9 March
Jiangxi Konka 990.00 990.00 No
Y 2022 2024
29 29
CN
Jiangxi Konka 10,000.00 1,760.11 September September No
Y
2020 2023
30 30
CN
Jiangxi Konka 1,000.00 174.77 December December No
Y
2020 2023
Xinfeng CN 8 December 8 December
2,100.00 369.60 No
Microcrystalline Y 2020 2023
29 28
Xinfeng CN
7,200.00 6,000.00 December December No
Microcrystalline Y
2022 2023
Xinfeng CN 30 June 29 June
7,200.00 6,000.00 No
Microcrystalline Y 2023 2024
Jiangxi High
CN 10 March 9 March
Transparent 990.00 990.00 No
Y 2022 2024
Substrate
13 31
CN
Yibin Kangrun 10,000.00 10,000.00 November December No
Y
2020 2024
13 13
CN
Anhui Konka 10,000.00 September September No
Y
2022 2023
CN 18 August 18 August
Anhui Konka 5,500.00 1,135.96 No
Y 2022 2023
CN 22 August 22 August
Anhui Konka 18,000.00 6,000.00 No
Y 2022 2023
CN 10 August 15 July
Anhui Konka 28,000.00 9,161.03 No
Y 2021 2031
CN 29 October 26 October
Anhui Konka 7,000.00 6,000.00 No
Y 2021 2026
CN 24 October 26 October
Anhui Konka 7,000.00 6,000.00 No
Y 2022 2026
19 18
CN
Anhui Konka 7,000.00 7,000.00 September September No
Y
2022 2023
CN 25 June 24 June
Anhui Konka 5,000.00 104.00 No
Y 2023 2028
Econ Technology 2,498.29 1,667.36 CN 8 July 2022 7 July 2023 No
183
Contracte
Actual Whether
d
guarantee Cu Start date Expiry the
guarantee
Secured party amount rre of date of guarantee
amount
(RMB'0,0 ncy guarantee guarantee is
(RMB'0,0
00) completed
00)
Y
CN 27 July 26 July
Econ Technology 749.49 499.66 No
Y 2022 2023
CN 16 August 15 August
Econ Technology 24.98 24.98 No
Y 2022 2023
6 5
CN
Econ Technology 199.86 199.86 September September No
Y
2022 2023
30 29
CN
Econ Technology 3,747.44 3,801.79 September September No
Y
2022 2024
23
CN 23 May
Econ Technology 2,748.12 2,027.81 November No
Y 2024
2022
CN 22 May 21 May
Econ Technology 1,498.97 1,498.97 No
Y 2023 2024
CN 10 May 11 August
Econ Technology 3,747.44 2,959.47 No
Y 2023 2023
Anhui Electrical CN
13,500.00 5,000.00 3 July 2020 1 July 2023 No
Appliance Y
Foshan Zhujiang
Media Creative
CN 17 May 21 March
Park Cultural 980.00 941.66 No
Y 2022 2023
Development Co.,
Ltd.
8 8
CN
OCT Group 60,000.00 60,000.00 September September No
Y
2022 2025
CN 18 October 18 October
OCT Group 60,000.00 60,000.00 No
Y 2022 2025
(2) The Company was secured party
Whether
Guarantee Cur Start date Expiry date
the
Guarantor amount renc of of
guarantee is
(RMB'0,000) y guarantee guarantee
completed
15 14
CN
Electronics Technology 51,000.00 September September No
Y
2022 2023
CN 8 January 8 January
OCT Group 100,000.00 No
Y 2021 2024
OCT Group 50,000.00 CN 21 May 21 May No
184
Whether
Guarantee Cur Start date Expiry date
the
Guarantor amount renc of of
guarantee is
(RMB'0,000) y guarantee guarantee
completed
Y 2021 2024
CN
OCT Group 80,000.00 9 July 2021 9 July 2024 No
Y
CN 8 September 8 September
OCT Group 60,000.00 No
Y 2022 2025
CN 18 October 18 October
OCT Group 60,000.00 No
Y 2022 2025
CN 14 July
OCT Group 120,000.00 14 July 2022 No
Y 2025
CN 22 June 21 June
OCT Group 100,000.00 No
Y 2022 2024
CN 24 June 23 June
OCT Group 149,000.00 No
Y 2021 2024
CN 23 August 22 August
OCT Group 39,750.00 No
Y 2022 2025
22 22
CN
OCT Group 30,000.00 December December No
Y
2022 2025
CN 18 January 18 January
OCT Group 70,000.00 No
Y 2023 2026
25 25
Hu Zehong, Liang Ruiling, CN
173.41 December December No
Dai Yaojin Y
2020 2023
Hu Zehong, Liang Ruiling, CN 31 May 31 August
42.90 No
Dai Yaojin Y 2021 2023
CN 6 November 1 December
Zhu Xinming 1,470.00 No
Y 2020 2023
Jiangxi Xinzixin Real CN 26 June 25 June
2,450.00 No
Estate Co., Ltd. Y 2022 2023
Jiangxi Xinzixin Real CN 10 March 9 March
485.10 No
Estate Co., Ltd. Y 2022 2024
29 29
Jiangxi Xinzixin Real CN
862.45 September September No
Estate Co., Ltd. Y
2020 2023
30 30
CN
Zhu Xinming 85.63 December December No
Y
2020 2023
CN 8 December 8 December
Zhu Xinming 181.10 No
Y 2020 2023
29 28
CN
Zhu Xinming 2,940.00 December December No
Y
2022 2023
Jiangxi Xinzixin Real 2,940.00 CN 30 June 29 June No
185
Whether
Guarantee Cur Start date Expiry date
the
Guarantor amount renc of of
guarantee is
(RMB'0,000) y guarantee guarantee
completed
Estate Co., Ltd. Y 2023 2024
Jiangxi Xinzixin Real CN 10 March 9 March
485.10 No
Estate Co., Ltd. Y 2022 2024
13 31
CN
Econ Technology 3,300.00 November December No
Y
2020 2024
Chuzhou State-owned
CN 18 August 18 August
Assets Management Co., 249.91 No
Y 2022 2023
Ltd.
Chuzhou State-owned
CN 22 August 22 August
Assets Management Co., 1,320.00 No
Y 2022 2023
Ltd.
Chuzhou State-owned
CN 10 August 15 July
Assets Management Co., 2,015.43 No
Y 2021 2031
Ltd.
Chuzhou State-owned
CN 29 October 26 October
Assets Management Co., 1,320.00 No
Y 2021 2026
Ltd.
Chuzhou State-owned
CN 24 October 26 October
Assets Management Co., 1,320.00 No
Y 2022 2026
Ltd.
Chuzhou State-owned 19 18
CN
Assets Management Co., 1,540.00 September September No
Y
Ltd. 2022 2023
Chuzhou State-owned
CN 25 June 24 June
Assets Management Co., 22.88 No
Y 2023 2028
Ltd.
CN 15 October 14 October
Zhu Xinming 11,123.00 No
Y 2022 2023
CN 15 October 14 October
Zhu Xinming 1,323.00 No
Y 2022 2023
31
CN 1 January
Zhu Xinming 3,399.49 December No
Y 2023
2023
CN 19 February 18 February
Zhu Xinming 13,249.19 No
Y 2023 2024
CN 1 March 28 February
Zhu Xinming 6,860.00 No
Y 2023 2024
CN 9 March 8 March
Zhu Xinming 2,330.54 No
Y 2023 2024
30
CN
Zhu Xinming 2,156.00 1 April 2023 September No
Y
2023
Zhu Xinming 443.45 CN 13 January 31 No
186
Whether
Guarantee Cur Start date Expiry date
the
Guarantor amount renc of of
guarantee is
(RMB'0,000) y guarantee guarantee
completed
Y 2023 December
2023
31
CN 30 March
Zhu Xinming 44.05 December No
Y 2023
2023
31
CN 14 April
Zhu Xinming 443.45 December No
Y 2023
2023
31
CN 30 June
Zhu Xinming 44.05 December No
Y 2023
2023
CN 28 February 27 February
Zhu Xinming 490.00 No
Y 2023 2024
31
CN 1 January
Zhu Xinming 5,109.05 December No
Y 2023
2023
31
CN 13 January
Zhu Xinming 252.63 December No
Y 2023
2023
31
CN 13 January
Zhu Xinming 101.77 December No
Y 2023
2023
31
CN 14 April
Zhu Xinming 203.63 December No
Y 2023
2023
31
CN 1 January
Zhu Xinming 1,862.90 December No
Y 2023
2023
31
CN 17 February
Zhu Xinming 223.85 December No
Y 2023
2023
31
CN 8 March
Zhu Xinming 93.12 December No
Y 2023
2023
31
CN 19 May
Zhu Xinming 101.35 December No
Y 2023
2023
31
CN
Zhu Xinming 93.12 8 June 2023 December No
Y
2023
CN 27 June 31 October
Zhu Xinming 1,470.00 No
Y 2023 2023
Yuan Shengxiang, Yudong
CN 19 August 31 October
Environmental Protection 3,430.00 No
Y 2020 2025
Technology Co., Ltd.
187
Whether
Guarantee Cur Start date Expiry date
the
Guarantor amount renc of of
guarantee is
(RMB'0,000) y guarantee guarantee
completed
Yuan Shengxiang, Yudong
CN 19 August 31 October
Environmental Protection 2,450.00 No
Y 2020 2025
Technology Co., Ltd.
31
Hu Zehong, Liang Ruiling, CN
2,450.00 1 July 2018 December No
Dai Yaojin Y
2025
31
Hu Zehong, Liang Ruiling, CN
4,899.02 1 July 2018 December No
Dai Yaojin Y
2025
Suiyong Rongxin Asset CN 1 January 30 June
980.00 No
Management Co., Ltd. Y 2018 2023
Suiyong Rongxin Asset CN 1 January 30 June
2,450.00 No
Management Co., Ltd. Y 2018 2023
Suiyong Rongxin Asset CN 1 January 30 June
1,862.00 No
Management Co., Ltd. Y 2018 2023
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd.,
Huaying Gaokede 31
CN 1 January
Electronics Technology 735.00 December No
Y 2022
Co., Ltd., Huaying 2025
Gaokelong Electronics
Technology Co., Ltd.,
Shenzhen Baili Yongxing
Technology Co., Ltd.
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd.,
Huaying Gaokede 31
CN 1 January
Electronics Technology 488.37 December No
Y 2022
Co., Ltd., Huaying 2025
Gaokelong Electronics
Technology Co., Ltd.,
Shenzhen Baili Yongxing
Technology Co., Ltd.
Shenzhen Henglongtong
Technology Co., Ltd.,
Guizhou Huajinrun
Technology Co. Ltd., 31
Huaying Gaokede CN 1 January
552.72 December No
Electronics Technology Y 2022
2025
Co., Ltd., Huaying
Gaokelong Electronics
Technology Co., Ltd.,
Shenzhen Baili Yongxing
188
Whether
Guarantee Cur Start date Expiry date
the
Guarantor amount renc of of
guarantee is
(RMB'0,000) y guarantee guarantee
completed
Technology Co., Ltd.
Chuzhou Hanshang Electric CN 20 May 19 May
2,450.00 No
Appliance Co., Ltd. Y 2021 2024
Chuzhou Hanshang Electric CN 20 May 19 May
2,083.96 No
Appliance Co., Ltd. Y 2021 2024
17 16
Shenzhen Qianhai Datang CN
588.00 November November No
Technology Co., Ltd. Y
2022 2025
Konka Ventures 15
CN 5 November
Development (Shenzhen) 1,322.54 December No
Y 2022
Co., Ltd. 2021
31 31
US
Wu Guoren 875.00 December December No
D
2019 2024
31 31
US
Wu Guoren 2,450.00 December December No
D
2019 2024
31 31
US
Wu Guoren 212.50 December December No
D
2019 2024
31 31
US
Xiao Yongsong 840.00 December December No
D
2019 2024
31 31
US
Xiao Yongsong 2,352.00 December December No
D
2019 2024
31 31
US
Xiao Yongsong 204.00 December December No
D
2019 2024
Shenzhen Unifortune 31
US 21 June
Supply Chain Management 1,477.84 December No
D 2021
Co., Ltd. 2022
Shenzhen Unifortune 31
US 21 June
Supply Chain Management 867.30 December No
D 2021
Co., Ltd. 2022
31
Guizhou Huajinrun US 1 January
381.15 December No
Technology Co. Ltd. D 2022
2025
31
Guizhou Huajinrun US 1 January
157.50 December No
Technology Co. Ltd. D 2022
2025
31
Shenzhen Henglongtong US 1 January
241.40 December No
Technology Co., Ltd. D 2022
2025
189
Whether
Guarantee Cur Start date Expiry date
the
Guarantor amount renc of of
guarantee is
(RMB'0,000) y guarantee guarantee
completed
31
Shenzhen Henglongtong US 1 January
99.75 December No
Technology Co., Ltd. D 2022
2025
10 31
AUJET INDUSTRY US
3,227.63 November December No
LIMITED D
2021 2023
10 31
AUJET INDUSTRY US
89.18 November December No
LIMITED D
2021 2023
31
AUJET INDUSTRY US
1,029.00 20 July 2020 December No
LIMITED D
2023
4. Loans from/to related parties
Cur
Amount(RMB'0,00
Related party ren Start date Maturity
0)
cy
Borrowing:
CN 10 January 9 January
OCT Group 131,091.00
Y 2022 2025
CN 19 May 18 May
OCT Group 50,000.00
Y 2022 2025
CN 26 May 25 May
OCT Group 70,000.00
Y 2022 2025
31
Chuzhou Hanshang Electric CN 1 February
10,535.00 December
Appliance Co., Ltd. Y 2022
2023
31
Chuzhou Hanshang Electric CN 30 May
490.00 December
Appliance Co., Ltd. Y 2023
2023
10 31
Chuzhou Hanshang Electric CN
1,837.50 November December
Appliance Co., Ltd. Y
2022 2023
Chuzhou Hanshang Electric CN 14 February 13 February
980.00
Appliance Co., Ltd. Y 2023 2024
CN 31 March 19 March
Econ Technology 33.00
Y 2022 2024
CN 19 March
Econ Technology 31.35 2 June 2021
Y 2024
CN 19 March
Econ Technology 20.13 4 June 2021
Y 2024
CN 13 August 19 March
Econ Technology 1,536.15
Y 2021 2024
190
Cur
Amount(RMB'0,00
Related party ren Start date Maturity
0)
cy
CN 13 October 19 March
Econ Technology 285.85
Y 2021 2024
17
CN 19 March
Econ Technology 40.26 December
Y 2024
2021
CN 16 February 19 March
Econ Technology 99.26
Y 2022 2024
CN 12 May 28 February
Econ Technology 95.96
Y 2022 2024
CN 16 June 28 February
Econ Technology 39.60
Y 2022 2024
CN 23 June 28 February
Econ Technology 1,070.92
Y 2022 2024
19
CN 28 February
Econ Technology 49.50 September
Y 2024
2022
19
CN 28 February
Econ Technology 33.00 December
Y 2024
2022
CN 24 February 28 February
Econ Technology 97.02
Y 2023 2024
Chongqing Kangjian Photoelectric CN 26 October 24 August
666.67
Technology Co., Ltd. Y 2022 2023
Kangkong Venture Capital CN 21 July 19 July
245.00
(Shenzhen) Co., Ltd. Y 2022 2023
30
Beijing Xuri Shengxing Technology CN 5 December
228.67 November
Co., Ltd. Y 2022
2023
7
CN
Shanghai SUS Environment Co.,Ltd. 1,000.00 9 June 2023 September
Y
2023
7
CN 20 June
Shanghai SUS Environment Co.,Ltd. 1,000.00 September
Y 2023
2023
Total 271,505.84
Lending:
25
Dongguan Guankangyuhong CN 6 August
19,600.00 September
Investment Co., Ltd. Y 2022
2023
18
Chuzhou Kangxin Health Industry CN 23 October
15,288.00 December
Development Co., Ltd. Y 2023
2022
Chuzhou Kangxin Health Industry CN 5 January 23 October
735.00
Development Co., Ltd. Y 2023 2023
191
Cur
Amount(RMB'0,00
Related party ren Start date Maturity
0)
cy
Chuzhou Kangxin Health Industry CN 5 January 23 October
59.45
Development Co., Ltd. Y 2023 2023
18
Chuzhou Kangxin Health Industry CN 23 October
1,240.03 December
Development Co., Ltd. Y 2023
2022
Chuzhou Kangxin Health Industry CN 22 March 23 October
16,758.00
Development Co., Ltd. Y 2023 2023
Chuzhou Kangxin Health Industry CN 21 March 23 October
1,359.26
Development Co., Ltd. Y 2023 2023
Chuzhou Kangxin Health Industry CN 21 March 23 October
109.95
Development Co., Ltd. Y 2023 2023
Chuzhou Kangxin Health Industry CN 22 March 23 October
1,344.36
Development Co., Ltd. Y 2023 2023
CN 21 January 4 March
Sichuan Chengrui 14,724.50
Y 2022 2025
16 25
CN
Yantai Kangyue Investment Co., Ltd. 12,852.70 December November
Y
2020 2022
23
Yantai Kangyun Industrial CN 26 February
10,020.00 November
Development Co., Ltd. Y 2024
2021
Yantai Kangyun Industrial CN 25 August 26 February
3,230.00
Development Co., Ltd. Y 2022 2024
Yantai Kangyun Industrial CN 17 March 26 February
1,020.00
Development Co., Ltd. Y 2022 2024
Yantai Kangyun Industrial CN 23 May 26 February
3,400.00
Development Co., Ltd. Y 2022 2024
Yantai Kangyun Industrial CN 26 February
2,500.00 1 June 2022
Development Co., Ltd. Y 2024
15
Yantai Kangyun Industrial CN 26 February
2,430.00 November
Development Co., Ltd. Y 2024
2022
25 22
Chongqing Lanlv Moma Real Estate CN
18,843.00 November September
Development Co., Ltd. Y
2020 2023
15 23
Sichuan Hongxinchen Real Estate CN
21,963.39 September December
Development Co., Ltd. Y
2022 2023
31
CN 17 March
Econ Technology 18,315.11 December
Y 2023
2023
20
CN 6 April
Econ Technology 4,996.58 December
Y 2023
2023
Chongqing Liangshan Industrial 7,524.80 CN 24 23
192
Cur
Amount(RMB'0,00
Related party ren Start date Maturity
0)
cy
Investment Co., Ltd. Y December December
2022 2023
Total 178,314.13
5. Asset transfer and debt restructuring of related parties
Amount incurred Amount
Related party
Related party in the Reporting incurred in the
transaction
Period previous period
OCT Group Co., Ltd. and its Transfer of patents,
subsidiaries and associate software copyrights 12,843,396.23
enterprises and trademarks
Total 12,843,396.23
6. Remuneration for key management personnel
Reporting Period Same period of the previous
Project
(RMB'0,000) year (RMB'0,000)
Total remuneration 549.95 737.41
（三） Balances with related parties
1. Receivables
Ending balance Opening balance
Related party
Carrying balance Bad debt provision Carrying balance Bad debt provision
Accounts
receivable:
OCT Group Co.,
Ltd. and its
subsidiaries and
153,191,974.88 11,823,388.29 156,687,630.71 8,433,199.71
associates
Shenzhen Yaode
Technology Co.,
Ltd. and its
148,503,144.96 125,575,215.21 143,135,135.62 121,664,865.28
subsidiaries
HOHOELECT
RICAL&FUR
126,891,283.20 18,139,114.89 123,273,472.66 18,429,711.73
NITURECO.,
LIMITED
Chuzhou
Hanshang Electric
Appliance Co.,
62,593,179.59 1,276,900.87 52,156,655.05 1,063,995.77
Ltd.
193
Ending balance Opening balance
Related party
Carrying balance Bad debt provision Carrying balance Bad debt provision
Anhui Kaikai
Shijie
E-commerce Co., 41,113,303.07 2,318,660.87 47,638,172.10 2,368,282.48
Ltd. and its
subsidiaries
Shenzhen
Kanghongxing
Smart 39,239,778.12 34,665,687.97 39,215,316.77 32,913,147.45
Technology
Co., Ltd.
Korea Electric
Group Co.,
23,695,513.68 483,388.48 4,960,132.20 101,186.70
Ltd. and its
subsidiaries
Shenzhen
Jielunte
Technology
Co., Ltd. and
9,813,160.70 200,188.48 13,523,856.80 410,843.28
its subsidiaries
as well as its
associated
enterprises
Shenzhen
Konda
E-display Co., 2,042,851.77 41,674.16 10,824,609.83 220,822.05
Ltd. and its
subsidiaries
Subtotal of other
17,442,982.92 940,045.58 17,711,091.20 574,271.36
related parties
Total 624,527,172.88 195,464,264.80 609,126,072.94 186,180,325.81
Financing
accounts
receivable/No
tes receivable:
Korea Electric
Group Co.,
126,000,000.00 103,340,000.00
Ltd. and its
subsidiaries
Anhui Kaikai
Shijie
E-commerce 4,000,000.00 63,064.76
Co., Ltd. and
its subsidiaries
194
Ending balance Opening balance
Related party
Carrying balance Bad debt provision Carrying balance Bad debt provision
Chuzhou
Hanshang
Electric 5,028,746.39
Appliance Co.,
Ltd.
Total 130,000,000.00 108,431,811.15
Dividends
receivable
Chongqing
Qingjia
272,999.43
Electronics
Co., Ltd.
Total 272,999.43
Other
receivables:
Jiangxi Meiji
Enterprise Co., 93,512,640.31 86,901,651.51 93,512,640.31 86,901,651.51
Ltd.
Dai Rongxing 84,345,435.41 84,345,435.41 83,058,831.58 83,058,831.58
Chongqing
Liangshan
Industrial 77,196,153.61 1,574,801.53 75,330,416.70 1,536,740.51
Investment Co.,
Ltd.
Shenzhen
Kanghongxing
Smart Technology
39,888,921.64 36,131,458.50 39,888,921.64 36,024,193.48
Co., Ltd.
OCT Group Co.,
Ltd. and its
subsidiaries and
36,778,366.11 20,417,601.13 35,760,987.33 20,304,912.84
associates
Huanjia Group
Co., Ltd. 25,083,675.53 24,582,002.02 25,083,675.53 24,582,002.02
Dongguan
Guankang Yuhong
Investment Co.,
22,000,000.00 220,000.00 22,000,000.00 220,000.00
Ltd.
HOHOELECT
RICAL&FUR
2,535,424.83 575,287.89 2,443,773.67 554,492.25
NITURECO.,
LIMITED
Hu Zehong 1,587,271.29 153,103.04 2,058,174.06 41,986.75
Subtotal of other
468,092.37 7,709.48 159,634.37 3,230.02
related parties
195
Ending balance Opening balance
Related party
Carrying balance Bad debt provision Carrying balance Bad debt provision
Total 383,395,981.10 254,909,050.52 379,297,055.19 253,228,040.96
Prepayments:
Puchuang
Jiakang
4,120,342.24 3,176,682.44
Technology
Co, Ltd.
Chuzhou
Hanshang
Electric 2,632,500.00
Appliance Co.,
Ltd.
Shenzhen
Kangying
Semiconductor
2,021,396.41 5,720,375.37
Technology
Co., Ltd. and
its subsidiaries
Henan Kangfei
Intelligent
Electric 1,971,261.84
Appliance Co.,
Ltd.
OCT Group
Co., Ltd. and
208,530.00 1,094,665.28
its subsidiaries
and associates
Subtotal of
other related 390,830.43 1,184,075.41
parties
Total 11,344,860.92 11,175,798.50
Contract
assets:
OCT Group
Co., Ltd. and
441,792.02 9,012.56
its subsidiaries
and associates
Total 441,792.02 9,012.56
Other current
assets:
196
Ending balance Opening balance
Related party
Carrying balance Bad debt provision Carrying balance Bad debt provision
Yantai
Kangyun
Industrial
247,211,577.82 238,121,355.60
Development
Co., Ltd. and
its subsidiaries
Sichuan
Hongxinchen
Real Estate 233,954,106.29
Development
Co., Ltd.
Shandong
Econ
Technology 233,116,949.03 183,151,149.03
Co., Ltd. and
its subsidiaries
Chongqing
Lanlv Moma
Real Estate 228,125,919.93 220,546,846.61
Development
Co., Ltd.
Dongguan
Guankang
Yuhong 216,823,806.77 217,760,251.21
Investment
Co., Ltd.
Yantai
Kangyue
165,457,091.34 160,287,449.78
Investment
Co., Ltd.
Sichuan
162,456,304.41 158,533,783.32
Chengrui
Total 1,867,956,911.49 1,544,592,633.47
2. Payables
Ending carrying Opening carrying
Related party
balance balance
Accounts payable:
Chuzhou Hanshang Electric Appliance Co., Ltd. 61,751,089.15 22,429,429.76
Puchuang Jiakang Technology Co, Ltd. 40,191,613.80 43,840.00
OCT Group Co., Ltd. and its subsidiaries and
24,899,469.89 13,114,183.37
associates
Shenzhen Jielunte Technology Co., Ltd. and its
16,376,915.47 13,942,717.31
subsidiaries
197
Ending carrying Opening carrying
Related party
balance balance
Shenzhen Konda E-display Co., Ltd. and its
13,727,043.65 12,879,895.22
subsidiaries
Korea Electric Group Co., Ltd. and its subsidiaries 11,303,306.87 2,609,330.74
HOHOELECTRICAL&FURNITURECO.,LIMITED 9,872,039.77 6,083,652.55
Dongguan Kangjia New Materials Technology Co.,
4,793,873.81 1,811,519.42
Ltd.
Anhui Kaikai Shijie E-commerce Co., Ltd. and its
4,615,128.91 4,615,128.91
subsidiaries
Panxu Intelligence Co., Ltd. and its subsidiaries 3,737,203.15 5,894,192.83
Subtotal of other related parties 9,504,535.20 6,042,680.04
Total 200,772,219.67 89,466,570.15
Notes payable:
Korea Electric Group Co., Ltd. and its subsidiaries 7,801,909.48 9,889,686.67
Dongguan Kangjia New Materials Technology Co.,
2,265,450.56 5,664,319.21
Ltd.
Chuzhou Hanshang Electric Appliance Co., Ltd. 13,000,000.00
Shenzhen Jielunte Technology Co., Ltd. and its
880,920.54 4,868,677.92
subsidiaries
Panxu Intelligence Co., Ltd. and its subsidiaries 4,425,575.22
Total 10,948,280.58 37,848,259.02
Contractual liabilities/other current liabilities:
OCT Group Co., Ltd. and its subsidiaries and
42,311,463.60 42,395,460.49
associates
Shenzhen Konda E-display Co., Ltd. and its
9,351,106.86 2,873,318.85
subsidiaries
Henan Kangfei Intelligent Electric Appliance Co.,
3,871,147.85 830,737.57
Ltd.
Shenzhen Aimijiakang Technology Co., Ltd. 1,030,654.81 2,541,156.83
Shandong Kangfei Intelligent Electrical Appliances
467,417.09 1,328,665.36
Co., Ltd.
Subtotal of other related parties 211,926.08 794,914.19
Total 57,243,716.29 50,764,253.29
Other payables:
Chuzhou Hanshang Electric Appliance Co., Ltd. 177,963,968.88 185,043,644.73
Shandong Econ Technology Co., Ltd. and its
37,625,604.01 42,331,626.74
subsidiaries
Shanghai SUS Environment Co.,Ltd. 20,458,916.66
OCT Group Co., Ltd. and its subsidiaries and
12,966,717.20 5,897,248.07
associates
198
Ending carrying Opening carrying
Related party
balance balance
Central Enterprises in poverty-stricken
areas(Jiangxi)Industrial Investment Funds 7,200,000.00 2,400,000.00
Partnership(L.P.)
Chongqing Kangjian Photoelectric Technology Co.,
7,151,258.03 8,029,369.86
Ltd.
Kangkong Venture Capital (Shenzhen) Co., Ltd. 2,486,447.97 2,483,024.67
Beijing Xuri Shengxing Technology Co., Ltd. 2,465,923.83 2,396,943.13
Korea Electric Group Co., Ltd. and its subsidiaries 2,092,105.43 1,908,700.39
Guangdong Wanrundaoheng Culture Tourism
83,480,206.21
Development Co., Ltd.
Subtotal of other related parties 8,309,603.52 8,674,635.51
Total 278,720,545.53 342,645,399.31
XII. Contingency
(1) Before the Company acquired Jiangxi Konka , Jiangxi Konka and its subsidiaries Xinfeng
Microcrystalline and Jiangxi High Transparent Substrate (formerly known as Nano-Grystallized
Glass) provided joint and several liability guarantee for the loans from Nanchang Rural
Commercial Bank Co., Ltd. to Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative
Material and Jiangxi Shanshi Science and Technology, related parties of former controlling
shareholders of Jiangxi Konka , and Nanchang Rural Commercial Bank Co., Ltd. then transferred
the claims to China Great Wall AMC Jiangxi Branch. For the failure of Jiangxi Xinxin Jian'an
Engineering, Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology
to repay the borrowings on time, China Great Wall AMC Jiangxi Branch filed a lawsuit
requesting Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material and Jiangxi
Shanshi Science and Technology to repay the loan principal amounting to RMB300 million and
the liquidated damage and interest arising from it and guarantors Jiangxi Konka, Jiangxi High
Transparent Substrate and Xinfeng Microcrystalline to bear joint and several liability for such
debts.
On 31 October 2019, the Higher People's Court of Jiangxi Province ruled in the first instance
that Jiangxi Xinxin Jian'an Engineering, Jiangxi Zhongyi Decorative Material, Jiangxi Shanshi
Technology should repay to China Great Wall AMC Jiangxi Branch the loan principal of
RMB300 million and the interest and liquidated damage arising from it within 10 days from the
effective date of the judgment, and Jiangxi Konka New Material, Zhu Xinming, Leng Sumin,
Nano-Grystallized Glass, Xinfeng Microcrystalline should bear joint and several liability for all
debts recognised in this judgment. The defendants appealed against the verdict of the first
instance and the Supreme People's Court accepted the appeal. On 24 March 2021, the Supreme
199
People's Court made the following ruling: I. Civil Judgment (2018) G.M.CH. No. 110 made by
the Higher People's Court of Jiangxi Province is abrogated; II. This case is remanded to the
Higher People's Court of Jiangxi Province for retrial. As of the date of issuance of this report, the
first instance of the retrial was decided, and a file was been filed.
The actual controller of Jiangxi Konka New Materials, Zhu Xinming, and his spouse, Leng
Sumin, Jiangxi Xinzixin Real Estate Co., Ltd., Zhu Zilong, Zhu Qingming and Zeng Xiaohong, as
guarantors, provided a total of approximately RMB143 million of real estate mortgage guarantee
to Great Wall AMC for the above loans. Zhu Xinming and Leng Sumin also provided joint
liability guarantees. In order to avoid the adverse impact of this case on the Company, the
Company has agreed in the acquisition agreement of Jiangxi Konka, Xinfeng Microcrystalline
and nanometre microcrystalline that all contingent debts incurred by Jiangxi Konka by the
original shareholders of Konka new material in the form of joint and several liability. Jiangxi
Xinzixin Real Estate Co., Ltd. has held a total of approximately RMB243 million of real estate
assets as the case of the anti-guarantee mortgage to Konka group and went through the mortgage
registration procedures. As of the date of this report, the case is still on trial and the above
commercial acceptance bill has not been honoured.
(2) As for the dispute of the Company with Luo Zaotong, Luo Jingxia, Luo Zongyin, Luo
Zongwu and Shenzhen Yaode Technology Co., Ltd. on share repurchase, since the other party did
not actively perform the repurchase obligation, the Company filed a lawsuit with the People's
Court of Nanshan District, Shenzhen. The amount of the subject matter involved in the lawsuit is
RMB249 million. On 22 November 2021, the Company applied to the People's Court of Nanshan
District, Shenzhen, for property preservation. On 11 January 2023, the People's Court of Nanshan
District, Shenzhen, rendered a verdict of the first instance, ruling that Luo Zaotong, Luo Jingxia,
Luo Zongyin and Luo Zongwu pay the repurchase amount of RMB172 million plus the sum of
interest calculated at 12% per annum from 6 April 2017 to the date of payment of the equity
repurchase by the defendant Luo Zaotong, Luo Jingxia, Luo Zongyin and Luo Zongwu. As of the
date of issuance of this report, the case was executed in progress.
(3) As the acceptor failed to pay the commercial acceptance bills held by the Company upon
maturity, the Company, as the plaintiff, requested debtors Hongtu Sanpower Technology Co., Ltd.,
Jiangsu Hongtu High Technology Co., Ltd., Sanpower Group Co., Ltd., Nanjing Jiongjiong
Electronic Technology Co., Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co., Ltd.
to bear joint and several liability for the bills and the overdue interest. In July 2019, the company
filed a lawsuit with the court, and the court has preserved the defendant's corresponding property.
As of the date of issuance of this report, the case was in trial.
(4) The amount of the subject matter involved in the dispute between the Company and
Wuhan Jialian Agricultural Technology Development Co., Ltd., Peng Chaojun, He Jiaguo, He
200
Jiayi, Liang Xiangzhou, Xu Yizheng, He Fan, Pang Huasheng, Song Liangming, and Liang
Xiangmei over the right of recourse for bills is RMB200 million and the corresponding interest.
In September 2020, the Company filed a lawsuit with the Wuhan Intermediate People's Court, and
the court order the defendant to pay Konka Group the bills and interest. The defendant applied for
retrial during the execution of the case. As of the date of issuance of this report, the case was in
retrial.
(5) The amount of the subject matter involved in the dispute between the Company's
subsidiary Konka Unifortune and Shenzhen Yaode Technology Co., Ltd., Dongsheng Xinluo
Technology (Shenzhen) Co., Ltd., Shenzhen Hongyao Dingsheng Investment Management Co.,
Ltd., Shenzhen Xiangrui Yingtong Investment Management Co., Ltd., Luo Jingxia, Luo Zongwu,
Luo Zongyin, Luo Zaotong and Luo Saiyin over contracts is RMB155 million. On 8 September
2022, the court issued a judgment in favour of the Company's subsidiary. As of the date of
issuance of this report, the case was executed in progress.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity,
the Company, as the plaintiff, filed a lawsuit with the court on the matured bills amounting to
RMB300 million, requesting the bill acceptor Shanghai Huaxin and prior parties involved to bear
joint and several liability for the bills and liquidated damage and interest. As of the date of
issuance of this report, the case involving RMB150 million is in compulsory execution and
shareholders have been added as persons to be executed in this case. For the remaining RMB150
million, the defendants have been ordered to pay Konka Group the bills and interest, which is
now in compulsory execution. As of the date of issuance of this report, the case was executed in
progress.
(7) The amount of the subject matter involved in the dispute between the Company's
subsidiaries Frestec Refrigeration, Anhui Konka, Konka Material and Anhui Tongchuang
(plaintiff) and Shantou Meisen Technology Co., Ltd., Shenzhen Meisenyuan Plastic Electronics
Co., Ltd., Lin Yuanqin, Huang Ruirong, Jiangsu Huadong Hardware Zone Co., Ltd., Chuangfu
Commerce & Trade Plaza Real Estate Development (Huizhou) Co., Ltd. and Puning Junlong
Trade Co., Ltd. (defendants) over contracts is RMB380 million. As of the date of issuance of this
report, the portion of the case, related to Anhui Tongchuang and Frestec Refrigeration, were
executed in progress, while the rest was in trial.
(8) The amount of the subject matter involved in the dispute between the Company's
subsidiary Konka Investment (plaintiff) and Elion Resources Group Co., Ltd. and Elion
Ecological Co., Ltd. (defendants) over capital increase is RMB98 million. The court of arbitration
issued an award on 27 January 2022. On 16 February 2022, the compulsory enforcement was
filed. On 9 September 2022, the Company and Elion entered into an execution settlement
agreement, which provides for monthly repayment from 15 September 2022 to 25 August 2023 to
201
pay off the outstanding amount of this case. As of the issuance of this report, an accumulated
amount of RMB125 million has been returned, and the case was executed in progress.
(9) A case has been filed on the dispute over the sales and purchase contracts between the
Company's subsidiary Konka Huanjia (plaintiff) and 38 companies (defendant) including Huanjia
Group Co., Ltd. and Dalian Jinshunda Material Recycling Co., Ltd., etc. The amount of the
subject matter involved in it is RMB890 million. Konka Huanjia has applied for the court to seal
up and freeze the defendant's corresponding property. In the case involving RMB322 million of
litigation, the court delivered a ruling of the first instance to Kangjia in March 2023, rejecting the
suit of Kangjia Huanjia. The remaining cases, involving RMB568 million, were decided by the
court for the first instance in December 2022, and Kangjia Huanjiadun has appealed to the
Liaoning Provincial High People's Court. As of the date of issuance of this report, the case
involving RMB322 million of litigation was closed, while the cases, involving RMB568 million,
were remanded for retrial.
(10) The amount of the subject matter involved in the dispute between the Company's
subsidiary Dongguan Konka (plaintiff) and Dongguan Gaoneng Polymer Materials Co., Ltd.,
Wang Dong, Shenzhen Xinlian Xingyao Trading Co., Ltd., Shenzhen Jinchuan Qianchao Network
Technology Co., Ltd., Puning Junlong Trading Co., Ltd. and Huang Zhihao (defendants) over
sales and purchase contracts is RMB90 million. In December 2020, the Company filed a lawsuit
with the court. The latter issued a judgment in favour of the Company. As of the date of issuance
of this report, the case was executed in progress.
(11) As the acceptor failed to pay the commercial bills held by the Company upon maturity,
the Company, as the plaintiff, filed a lawsuit with the court on the matured bills amounting to
RMB78 million, requesting the court to order Hefei Huajun Trading Co., Ltd. and Wuhan Jialian
Agricultural Technology Development Co., Ltd. to pay the Company the bills and the interest for
default, and applied for property preservation. The case executed a return of RMB2 million, and
the Company is applying with the court for adding shareholders as persons to be executed. As of
the date of issuance of this report, the case was executed in progress.
(12) The amount of the subject matter involved in the dispute between the Company's
subsidiary Konka Factoring (the plaintiff) and Tahoe Group Co., Ltd., Fuzhou Taijia Enterprise
Co., Ltd. and Xiamen Lianchuang Micro-electronics Co., Ltd. (the defendants) over the right of
recourse for bills is RMB50 million and the corresponding interest. On 1 September 1 2021, the
Intermediate People's Court of Xiamen Municipality, Fujian Province, ordered the defendants to
pay the plaintiff e-commercial acceptance bills of RMB50 million and the corresponding interest.
On 4 January 2022, the compulsory enforcement was filed. The case executed a return of RMB43
million. As of the date of issuance of this report, the case was executed in progress.
202
(13) The amount of the subject matter involved in the dispute between the Company
(plaintiff) and China Energy Electric Fuel Co., Ltd., China Energy (Shanghai) Enterprise Co.,
Ltd., Shanghai Nengping Enterprise Co., Ltd. and Shenzhen Qianhai Baoying Commercial
Factoring Co., Ltd. (defendants) over the right of recourse for bills is RMB50 million and the
corresponding interest. In September 2018, the company filed a lawsuit with the Shenzhen
Intermediate People's Court, and the court has preserved the defendant's corresponding property.
The judgment of this case has come into effect. The court ordered China Energy Electric Fuel Co.,
Ltd. and other defendants to pay the Company the bills of RMB50 million and the interest. As of
the date of issuance of this report, the case was executed in progress, and the Company applied
with the court for adding shareholders as persons to be executed.
(14) The amount of the subject matter involved in the dispute between the Company's
subsidiary Anhui Konka (plaintiff) and Makena Electronic (Hong Kong) (defendant) over the
sales and purchase contract is RMB5,440,200. On 7 December 2021, Anhui Konka filed
arbitration with the Shenzhen Court of International Arbitration. On 14 October 2022, the
compulsory enforcement was filed. As of the date of issuance of this report, the case was
executed in progress.
(15) The amount of the subject matter involved in the dispute between the Company's
subsidiary Anhui Konka (plaintiff) and Shanghai Likai Logistics Co., Ltd. Shenzhen Branch and
Shanghai Likai Logistics Co., Ltd. (defendants) over freight forwarding contracts in maritime and
open sea waters is RMB38 million. On 26 April 2021, Konka applied to Shanghai Maritime Court
for compulsory execution. On 7 June 2021, the court accepted the case. As of the date of issuance
of this report, the case was executed in progress.
(16) The amount of the subject matter involved in the dispute between the Company's
subsidiary Pengrun Technology (plaintiff) and Guangan Ou Qi Shi Electronic Technology Co.,
Ltd., Guan Hongshao, Huaying Gaokede Electronic Technology Co., Ltd., Huaying Gaokelong
Electronic Technology Co., Ltd., Guizhou Jiaguida Technology Co., Ltd., Sichuan Hongrongyuan
Real Estate Co., Ltd., Du Xinyu, Linbolong and Wang Shisheng (defendants) over trust contract
is RMB167 million. The case has been applied for property preservation measures. As of the date
of issuance of this report, the case was under trial.
(17) The amount of the subject matter involved in the dispute between the Company
(plaintiff) and Yantai Kangyue Investment Co., Ltd. (defendant) over borrowing contract is
RMB160 million. The Company has applied to the Shenzhen Intermediate People's Court for
property preservation. As of the date of issuance of this report, the cases are under trial.
(18) The amount of the subject matter involved in the dispute between the Company's
subsidiary Konka Huanjia (plaintiff) and Bank Of Fuxin Co., Ltd., Huanjia Group, Dalian Jinjia
203
Materials Recycling Co., Ltd., Dalian Jin Kaixuan Renewable Resources Acquisition Chain Co.,
Ltd., Dalian Yingtai Paper Co., Ltd., Dalian Zhanhong Renewable Resources Recycling Co., Ltd.
and Wang Jinping (defendants) over the execution objection by an outsider is RMB240 million.
As of the date of issuance of this report, the case was under trial.
(19) The amount of the subject matter involved in the dispute between the Company's
subsidiary Jiaxin Technology Co., Limited (plaintiff) and Tripod Electronics Technology
(HongKong) Limited, Chen Wenhuan and Chen Baohong (defendants) over a sales and purchase
contract of international goods is RMB51 million. As of the date of issuance of this report, the
case was under trial.
(20) The amount of the subject matter involved in the dispute between the Company's
subsidiary Kangzhi Trade (plaintiff) and B&L Technology Co., Limited (defendant) over a sales
and purchase contract of international goods is RMB25 million. As of the date of issuance of this
report, the case was executed in progress.
(21) The amount of the subject matter involved in the dispute between the Company's
subsidiary Anhui Konka (plaintiff) and MAKENA Electronic (Shenzhen) Co., Ltd. (defendant)
over a guarantee contract is RMB21 million. On 27 December 2022, the court made verdict of
first instance, which supported most of Anhui Konka's claims, and both parties appealed against
the verdict of first instance. As of the date of issuance of this report, the case was under trial.
(22) The amount of the subject matter involved in the dispute between Shenzhen Oriental
Venture Capital Investment Co., Ltd. (plaintiff) and the Company (defendant) over a contract is
RMB750 million. As of the date of issuance of this report, the case was under trial.
(23) The amount of the subject matter involved in the dispute between the Company and the
Company's subsidiary Electronics Technology (defendants) and Wu Rong (plaintiff) over a sales
and purchase contract is RMB22 million. As of the date of issuance of this report, the case was
under trial.
XIII. Commitments
1. Capital commitments
Item Closing balance Opening balance
Contract signed but hasn't been
recognised in financial statements
-Commitment on construction and
purchase of long-lived assets
-Large amount contract 675,769,622.91 523,553,381.89
-Foreign investment commitments
204
Total 675,769,622.91 523,553,381.89
2. Other commitments
As of 30 June 2023, there were no other significant commitments for the Company to
disclose.
XIV. Events after Balance Sheet Date
1. 1. No significant non-adjusted events
2. Sales return
No such cases in the Reporting Period.
3. 3. There were no other significant events after balance sheet date for the Company.
XV. Other Significant Events
The Company has no other significant events.
XVI. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts receivable
（1） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category Provision Carrying
Proportion value
Amount Amount percentage
(%)
(%)
Accounts
receivable of
716,102,2
expected credit 11.79 652,174,491.35 91.07 63,927,795.70
87.05
losses withdrawn
individually
Accounts
receivable of
expected credit
losses withdrawn
by portfolio
Of which: Aging 350,995,2 158,461,756.1
5.78 192,533,466.31 54.85
portfolio 22.41 0
Grouping 5,004,296 5,004,296,403
82.43
of related parties ,403.24 .24
Subtotal of 5,355,291 5,162,758,159
88.21 192,533,466.31 3.60
portfolio ,625.65 .34
Total 6,071,393 5,226,685,955
100 844,707,957.66 13.91
,912.70 .04
(Continued)
205
Opening balance
Book balance Provision for bad debts
Category Provision Carrying
Proportion value
Amount Amount percentage
(%)
(%)
Accounts
receivable of
723,559,6
expected credit 13.60 652,094,110.07 90.12 71,465,499.56
09.63
losses withdrawn
individually
Accounts
receivable of
expected credit
losses withdrawn
by portfolio
Of which: Aging 410,174,7 216,284,942.5
7.71 193,889,834.11 47.27
portfolio 76.68 7
Grouping 4,186,128 4,186,128,552
78.69
of related parties ,552.37 .37
Subtotal of 4,596,303 4,402,413,494
86.40 193,889,834.11 4.22
portfolio ,329.05 .94
Total 5,319,862 4,473,878,994
100.00 845,983,944.18 15.90
,938.68 .50
（2） Provision for bad debts of accounts receivable provided individually
Closing balance
Name Provision
Provision for Reasons for the
Book balance percentage
bad debts provision
(%)
Shanghai Huaxin
Expected to be
International 299,136,676.70 293,153,943.17 98
difficult to recover
Group Co., Ltd.
Hongtu Sanbao
High-tech Agreement
200,000,000.00 160,000,000.00 80
Technology Co., reorganisation
Ltd.
Zhongfu Tiangong
Expected to be
Construction 71,539,096.65 53,654,322.49 75
difficult to recover
Group Co., Ltd.
CCCC First
Harbor Expected to be
55,438,105.00 55,438,105.00 100
Engineering difficult to recover
Company Ltd.
China Energy Expected to be
Electric Fuel Co., 50,000,000.00 50,000,000.00 100
difficult to recover
Ltd.
Henan Radio and Expected to be
26,847,370.00 26,847,370.00 100
Television difficult to recover
206
Closing balance
Name Provision
Provision for Reasons for the
Book balance percentage
bad debts provision
(%)
Network Co., Ltd.
Others Expected to be
13,141,038.70 13,080,750.69 99.54
difficult to recover
Total 716,102,287.05 652,174,491.35 91.07
1） Provision for bad debts for accounts receivable made as per portfolio
① Among the portfolio, withdrawal of expected credit loss by aging
Closing balance
Aging Provision for bad Provision
Book balance
debts percentage (%)
Within one year 98,861,669.89 2,016,778.04 2.04
One to two years 64,853,679.82 6,498,338.72 10.02
Two to three years 3,042,884.82 690,430.57 22.69
Over three years 184,236,987.88 183,327,918.98 99.51
Three to four years 2,588,464.99 1,679,396.09 64.88
Four to five years 19,473,262.48 19,473,262.48 100.00
Over five years 162,175,260.41 162,175,260.41 100.00
Total 350,995,222.41 192,533,466.31 54.85
② Among the portfolio, withdrawal of expected credit loss by adopting other method
Closing balance
Aging Provision for Provision
Book balance
bad debts percentage (%)
Grouping of related parties 5,004,296,403.24
Total 5,004,296,403.24
（3） Accounts receivable listed by aging portfolio
Aging Closing balance
Within one year 4,541,756,449.61
One to two years 516,433,226.62
Two to three years 99,003,192.95
Over three years 914,201,043.52
Three to four years 72,635,057.88
Four to five years 668,764,128.97
Over five years 172,801,856.67
Subtotal 6,071,393,912.70
207
Less: Provisions for bad debts 844,707,957.66
Total 5,226,685,955.04
（4） Information of provision for bad debts in the Reporting Period
Change in the Reporting Period
Category Opening balance Recovery or
Provision
reclassification
Provision for bad
debts of accounts
receivable 845,983,944.18 320,444.05 1,596,430.57
Total 845,983,944.18 320,444.05 1,596,430.57
(Continued)
Change in the Reporting Period
Category Charge-off or Closing balance
Others
write-off
Provision for bad
debts of accounts
receivable 844,707,957.66
Total 844,707,957.66
（5） No actual verified accounts receivable in the Reporting Period.
（6） Top five accounts receivable in the closing balance categorised by debtors
The total amount of receivables with top five ending balance collected by arrears party for the
Reporting Period was RMB4,781,615,179.61, accounting for 78.76% of the total ending balance
of accounts receivable. The total ending balance of provision for bad debts correspondingly
withdrawn was RMB0.
（7） There was no account receivable terminated the recognition owning to the transfer of
the financial assets
（8） There was no asset and liability formed due to the transfer of accounts receivable and
continued involvement in the Reporting Period
2. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 5,279,505.89 3,878,580.64
Dividends receivable 397,213,312.02 393,563,347.61
Other accounts receivable 9,200,889,225.20 9,944,884,426.80
Total 9,603,382,043.11 10,342,326,355.05
2.1 Interest receivable
208
Item Closing balance Opening balance
Interest on term deposits 5,279,505.89 3,878,580.64
Total 5,279,505.89 3,878,580.64
2.2 Dividends receivable
Investee Closing balance Opening balance
Hong Kong Konka Limited 117,213,312.02 113,563,347.61
Suining Konka Industrial Park
280,000,000.00 280,000,000.00
Development Co., Ltd.
Total 397,213,312.02 393,563,347.61
2.3 Other receivables
（1） Classified by account nature
Nature of fund Closing book balance Opening book balance
Intercourse funds among
10,878,544,849.73 11,299,542,985.57
subsidiaries
Energy-saving subsidies receivable 141,549,150.00 141,549,150.00
Intercourse funds with other related
67,922,245.03 50,667,315.53
parties
Deposit and margin 13,000,446.16 17,354,107.03
Others 63,695,802.50 375,797,998.76
Total 11,164,712,493.42 11,884,911,556.89
（2） Withdrawal of provision for bad debts for other receivables
Phase I Phase II Phase III
Expected credit
Provision loss during the Expected credit loss
Expected
for bad whole during the whole Total
credit loss for
debts outstanding outstanding
the next 12
maturity maturity (with
months
(without credit credit impairment)
impairment)
Balance as
of 1 January 357,726.75 57,275,497.55 1,882,393,905.79 1,940,027,130.09
2023
In the
Reporting
Period,
carrying
amount of -66,300.39 66,300.39
other
receivables
on 1 January
2023
-- -66,300.39 66,300.39
209
Phase I Phase II Phase III
Expected credit
Provision loss during the Expected credit loss
Expected
for bad whole during the whole Total
credit loss for
debts outstanding outstanding
the next 12
maturity maturity (with
months
(without credit credit impairment)
impairment)
Transferred
to Phase II
--
Transferred
to Phase III
--
Reclassified
under Phase
II
--
Reclassified
under Phase
I
Provision in
the
333,341.39 14,165,418.49 9,297,378.25 23,796,138.13
Reporting
Period
Reclassificat
ion in the
Reporting
Period
Charge-off
in the
Reporting
Period
Write-off in
the
Reporting
Period
Other
changes
Balance as
of 30 June 624,767.75 71,507,216.43 1,891,691,284.04 1,963,823,268.22
2023
（3） Withdrawing provision for bad debts for other receivables by portfolio
Closing balance
Category
Book balance Provision for bad debts Carrying
210
Withdrawal value
Proportion
Amount Amount proportion
(%)
(%)
Other
receivables
of expected 1,906,715,323.4 1,891,691,284 15,024,039.3
17.08 99.21
credit losses 0 .04 6
withdrawn
individually
Other
receivables
of provision
for bad debts
withdrawn
by credit risk
characteristi
c portfolio:
Aging 41,914,655.7
110,462,355.71 0.99 68,547,699.96 62.06
portfolio 5
Low-risk 12,424,901.2
16,009,185.47 0.14 3,584,284.22 22.39
portfolio 5
Grouping of
9,131,525,628.8 9,131,525,62
related 81.79
4 8.84
parties
Subtotal of 9,257,997,170.0 9,185,865,18
82.92 72,131,984.18 0.78
portfolio 2 5.84
11,164,712,493. 1,963,823,268 9,200,889,22
Total 100 17.59
42 .22 5.20
Opening balance
Book balance Provision for bad debts
Category Withdrawal Carrying
Proportion value
Amount Amount proportion
(%)
(%)
Other
receivables
of expected
1,901,377,741.07 16.00 1,882,393,905.79 99.00 18,983,835.28
credit losses
withdrawn
individually
Other
receivables
of provision
for bad debts
withdrawn
by credit risk
characteristi
211
Opening balance
Book balance Provision for bad debts
Category Carrying
Withdrawal
Proportion value
Amount Amount proportion
(%)
(%)
c portfolio:
Aging
94,419,620.35 0.79 54,385,072.09 57.60 40,034,548.26
portfolio
Low-risk
16,755,275.76 0.14 3,248,152.21 19.39 13,507,123.55
portfolio
Grouping
9,872,358,919
of related 9,872,358,919.71 83.07
.71
parties
Subtotal of 9,925,900,591
9,983,533,815.82 84.00 57,633,224.30 0.58
portfolio .52
9,944,884,426
Total 11,884,911,556.89 100.00 1,940,027,130.09 16.32
.80
（4） Other receivables listed by aging
Aging Closing balance
Within one year 4,613,334,198.38
One to two years 3,517,576,136.05
Two to three years 1,001,637,203.66
Three to four years 325,281,105.82
Four to five years 1,358,342,044.40
Over five years 348,541,805.11
Subtotal 11,164,712,493.42
Less: Provisions for bad debts 1,963,823,268.22
Total 9,200,889,225.20
（5） Provision for bad debts for other receivables
The amount of provision for bad debts for the Reporting Period was RMB23,796,138.13,
and other receivables actually written off in this period were RMB0.00.
（6） Other receivables actually written off for the Reporting Period
There were no other receivables actually written off for the Reporting Period.
（7） Top five other accounts receivable in the closing balance categorised by debtors
The total amount of other receivables with top five ending balance collected by arrears party
this year was RMB7,530,437,339.57, accounting for 67.45% of the total ending balance of other
receivables. The total ending balance of provision for bad debts correspondingly withdrawn was
212
RMB1,732,011,461.53.
（8） There were no other receivables derecognised due to the transfer of financial assets for
the Reporting Period.
（9） There were no assets or liabilities formed due to the transfer and the continued
involvement of other receivables for the Reporting Period.
213
3. Long-term equity investment
（1）Category of long-term equity investment
Closing balance Opening balance
Item Provision for Provision for
Book balance Carrying value Book balance Carrying value
impairment impairment
Investment
in 7,334,954,047.75 781,480,000.00 6,553,474,047.75 7,277,554,047.75 781,480,000.00 6,496,074,047.75
subsidiaries
Investment
in associated
enterprises 2,347,018,914.97 219,718,378.41 2,127,300,536.56 2,824,333,468.08 219,718,378.41 2,604,615,089.67
and joint
ventures
Total 9,681,972,962.72 1,001,198,378.41 8,680,774,584.31 10,101,887,515.83 1,001,198,378.41 9,100,689,137.42
（2）Investment in subsidiaries
Impairment
Increase in the provision set Closing balance
Decrease in the
Investee Opening balance Reporting Closing balance aside in the of the provision
Reporting Period
Period Reporting for impairment
Period
Konka Ventures 2,550,000.00 2,550,000.00
Anhui Konka 122,780,937.98 122,780,937.98
Konka Factoring 300,000,000.00 300,000,000.00
Konka Unifortune 15,300,000.00 15,300,000.00
Wankaida 10,000,000.00 10,000,000.00
Dongguan Konka 274,783,988.91 274,783,988.91
214
Impairment
Increase in the provision set Closing balance
Decrease in the
Investee Opening balance Reporting Closing balance aside in the of the provision
Reporting Period
Period Reporting for impairment
Period
Konka Europe 3,637,470.00 3,637,470.00
Telecommunication
360,000,000.00 360,000,000.00
Technology
Mobile
100,000,000.00 100,000,000.00
Interconnection
Anhui Tongchuang 779,702,612.22 779,702,612.22
Kangjiatong 30,749,800.00 30,749,800.00
Pengrun
25,500,000.00 25,500,000.00
Technology
Beijing Konka
200,000,000.00 200,000,000.00
Electronic
Konka Circuit 297,650,000.00 77,400,000.00 375,050,000.00
Hong Kong Konka 781,828.61 781,828.61
Konka Investment 500,000,000.00 500,000,000.00
Electronics
1,000,000,000.00 1,000,000,000.00
Technology
Konka Huanjia - 91,800,000.00
Shanghai Konka 40,000,000.00 40,000,000.00 -
Jiangxi Konka - 689,680,000.00
Shenzhen Nianhua 30,000,000.00 30,000,000.00
Shenzhen
100,000,000.00 100,000,000.00
KONSEMI
215
Impairment
Increase in the provision set Closing balance
Decrease in the
Investee Opening balance Reporting Closing balance aside in the of the provision
Reporting Period
Period Reporting for impairment
Period
Konka
50,000.00 50,000.00
Eco-Development
Suining Konka
200,000,000.00 200,000,000.00
Industrial Park
Konka Ronghe 5,100,000.00 5,100,000.00
Suining Electronic
Technological 200,000,000.00 200,000,000.00
Innovation
Shenzhen
Chuangzhi
10,000,000.00 10,000,000.00
Electrical
Appliances
Kanghong (Yantai)
Environmental 1,025,100.00 1,025,100.00
Protection
Chongqing
25,500,000.00 25,500,000.00
Kangxingrui
Chongqing
Optoelectronic
933,333,333.33 933,333,333.33
Technology
Research Institute
Kowin Memory
192,520,000.00 192,520,000.00
(Shenzhen)
Ningbo Kanghr
90,000,000.00 90,000,000.00
Electrical Appliance
216
Impairment
Increase in the provision set Closing balance
Decrease in the
Investee Opening balance Reporting Closing balance aside in the of the provision
Reporting Period
Period Reporting for impairment
Period
Konka Intelligent
510.00 510.00
Manufacturing
Suining Jiarun
10,000,000.00 10,000,000.00
Property
Yibin Kangrun 67,000,000.00 67,000,000.00
Konka Material 9,205,452.93 9,205,452.93
Industrial and Trade
50,000,000.00 50,000,000.00
Technology
Konka Huazhong 30,000,000.00 30,000,000.00
Guizhou Kanggui
Material 70,000,000.00 70,000,000.00
Technology
Nantong Kanghai 15,300,000.00 15,300,000.00
Jiangxi Konka
50,000,000.00 50,000,000.00
High-tech Park
Shangrao Konka
Electronic
30,000,000.00 30,000,000.00
Technology
Innovation
Sichuan
Hongxinchen Real
20,000,000.00 20,000,000.00 -
Estate Development
Co., Ltd.
Xi'an Kanghong 12,000,000.00 12,000,000.00
Technology
217
Impairment
Increase in the provision set Closing balance
Decrease in the
Investee Opening balance Reporting Closing balance aside in the of the provision
Reporting Period
Period Reporting for impairment
Period
Industry
Xi'an Konka
Intelligent 50,000,000.00 50,000,000.00
Technology
Tianjin Konka 171,603,013.77 171,603,013.77
Songyang Konka
30,000,000.00 30,000,000.00
Intelligent
Konka North China 30,000,000.00 30,000,000.00
Total 6,496,074,047.75 77,400,000.00 20,000,000.00 6,553,474,047.75 781,480,000.00
（3）Investment in associated enterprises and joint ventures
Change in the Reporting Period
Closing balance of Profit or loss of Changes in other
Investee Increase in the Decrease in the
previous period investment recognised by comprehensive
investment investment
the equity method income
Anhui Kaikai Shijie E-commerce Co., Ltd. 17,400,738.44
Kunshan Kangsheng Investment Development
219,065,984.22 -10,055,178.43
Co., Ltd.
Chutian Dragon Co., Ltd. 523,726,463.18
Shaanxi Silk Road Cloud Intelligent Tech Co.,
13,333,698.78 -781,563.56
Ltd.
Shenzhen Kanghongxing Intelligent
Technology Co., Ltd.
218
Change in the Reporting Period
Closing balance of Profit or loss of Changes in other
Investee Increase in the Decrease in the
previous period investment recognised by comprehensive
investment investment
the equity method income
Shenzhen Zhongkang Beidou Technology Co.,
Ltd.
Shenzhen Kangjia Jiapin Intelligent Electrical
5,371,364.87 739,175.43
Apparatus Technology Co., Ltd.
Shenzhen Yaode Technology Co., Ltd.
Wuhan Tianyuan Environmental Protection
352,295,640.91 -3,659,889.05
Co., Ltd.
Shenzhen KONKA E-display Co., Ltd. 12,567,702.52 690,558.45
Chuzhou Konka Technology Industry
5,899,324.39 -2,909,934.84
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
172,987,384.01 -2,876,368.35
Development Co., Ltd.
Nantong Kangjian Technology Industrial Park
5,625,680.96
Operations and Management Co., Ltd.
Shenzhen Kangyue Enterprise Co., Ltd. 2,999,091.61 -54,027.66
Dongguan Guankang Yuhong Investment Co.,
Ltd.
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Chuzhou Kangxin Health Industry
10,835,065.75 -1,327,324.27
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 8,574,609.73
Shenzhen Kangpeng Digital Technology Co.,
3,411,153.10 -1,124,071.28
Ltd.
Yantai Kangyun Industrial Development Co.,
4,135,456.96 -2,714,568.47
Ltd.
219
Change in the Reporting Period
Closing balance of Profit or loss of Changes in other
Investee Increase in the Decrease in the
previous period investment recognised by comprehensive
investment investment
the equity method income
Shandong Econ Technology Co., Ltd. 1,044,184,489.99
Dongguan Kangjia New Materials Technology
3,950,928.27 186,757.47
Co., Ltd..
Chongqing E2info Technology Co., Ltd. 163,744,169.42 15,527,141.05
Sichuan Chengrui Real Estate Co., Ltd. 7,851,192.26 -4,691,048.46
Wuhan Kangtang Information Technology Co.,
26,654,950.30 -958,720.49
Ltd.
Sichuan Hongxinchen Real Estate
6,161,929.55 -3,564,612.77
Development Co., Ltd.
Total 2,604,615,089.67 6,161,929.55 -17,573,675.23
(Continued)
Change in the Reporting Period Closing balance
Cash dividends Ending balance of
Investee Provision set depreciation
Changes in other or profits
aside for Others (Carrying value) reserve
equities declared to be
impairment
distributed
Anhui Kaikai Shijie E-commerce Co., Ltd. 17,400,738.44
Kunshan Kangsheng Investment
29,400,000.00 179,610,805.79
Development Co., Ltd.
Chutian Dragon Co., Ltd. -523,726,4
63.18
Shaanxi Silk Road Cloud Intelligent Tech 12,552,135.22
220
Change in the Reporting Period Closing balance
Cash dividends Ending balance of
Investee Provision set depreciation
Changes in other or profits
aside for Others (Carrying value) reserve
equities declared to be
impairment
distributed
Co., Ltd.
Shenzhen Kanghongxing Intelligent
5,158,909.06
Technology Co., Ltd.
Shenzhen Zhongkang Beidou Technology
-
Co., Ltd.
Shenzhen Kangjia Jiapin Intelligent
6,110,540.30
Electrical Apparatus Technology Co., Ltd.
Shenzhen Yaode Technology Co., Ltd. 214,559,469.35
Wuhan Tianyuan Environmental Protection
3,078,000.00 435,859,407.61
Co., Ltd. 90,301,655.75
Shenzhen KONKA E-display Co., Ltd. 13,258,260.97
Chuzhou Konka Technology Industry
2,989,389.55
Development Co., Ltd.
Chuzhou Kangjin Health Industrial
170,111,015.66
Development Co., Ltd.
Nantong Kangjian Technology Industrial
5,625,680.96
Park Operations and Management Co., Ltd.
Shenzhen Kangyue Enterprise Co., Ltd. 2,945,063.95
Dongguan Guankang Yuhong Investment
Co., Ltd.
Chongqing Yuanlv Benpao Real Estate Co.,
Ltd.
Chuzhou Kangxin Health Industry 9,507,741.48
221
Change in the Reporting Period Closing balance
Cash dividends Ending balance of
Investee Provision set depreciation
Changes in other or profits
aside for Others (Carrying value) reserve
equities declared to be
impairment
distributed
Development Co., Ltd.
E3info (Hainan) Technology Co., Ltd. 8,574,609.73
Shenzhen Kangpeng Digital Technology
2,287,081.82
Co., Ltd.
Yantai Kangyun Industrial Development
1,420,888.49
Co., Ltd.
Shandong Econ Technology Co., Ltd. 1,044,184,489.99
Dongguan Kangjia New Materials
4,137,685.74
Technology Co., Ltd..
Chongqing E2info Technology Co., Ltd. 179,271,310.47
Sichuan Chengrui Real Estate Co., Ltd. 3,160,143.80
Wuhan Kangtang Information Technology
25,696,229.81
Co., Ltd.
Sichuan Hongxinchen Real Estate
2,597,316.78
Development Co., Ltd.
-523,726,4
Total 90,301,655.75 32,478,000.00 2,127,300,536.56 219,718,378.41
63.18
222
4. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the Reporting Amount incurred in the previous period
Item Period
Income Cost Income Cost
Principal 588,736,212.10 651,086,329.20
795,988,114.95 904,792,276.47
business
Other 82,606,260.87 31,456,950.98
141,186,691.51 50,784,505.04
business
Total 671,342,472.97 682,543,280.18 937,174,806.46 955,576,781.51
(2) Information in relation to the trade price apportioned to the residual contract performance
obligation:
The amount of income corresponding to the performance obligations of contracts signed but
not yet performed or fully performed was RMB5,105429.95 at the year-end, among which
RMB5,105,429.95 is expected to be recognized in 2023.
5. Investment income
Amount incurred
Amount incurred in the
Item in the previous
Reporting Period
period
Returns on long-term equity investments
-17,573,675.23 76,488,083.68
calculated by the equity method
Return on investment arising from the disposal
182,495,426.59 152,614,987.18
of long-term equity investments
Investment income from disposal of financial
-3,794,910.98
assets at fair value through profit or loss
Interest income from debt investments during
3,622,191.78 2,010,000.00
the holding period
Equity investment calculated by the equity
574,780,174.75
method and converted to financial assets
Return on investment in the financial assets
9,383,976.00
held for trading during the holding period
Others 500,000.00
Total 749,413,182.91 231,113,070.86
XVII. Approval of Financial Statements
The financial statement was approved on 25 August 2023 by the Board of Directors.
223
XVIII. Supplementary Materials
1.Items and amounts of non-recurring profit or loss
Amount of the Notes
Item
Reporting Period
Gains and losses on disposal of non-current assets 234,443,700.65
Tax rebates, reductions or exemptions due to approval beyond
authority or the lack of official approval documents
Government grants recognised in the Reporting Period, except
for those acquired in the ordinary course of business or granted
143,191,046.27
at certain quotas or amounts according to the government's
unified standards
Dispossession surcharge to non-financial institutions included in
the current profit and loss
Profits arising from business combination when the combined
cost is less than the recognised fair value of net assets of the
merged company
Gain/Loss on non-monetary asset swap
Gain/Loss on entrusting others with investments or asset
management
Asset impairment provisions due to acts of God such as natural
disasters
Gains and losses on debt restructuring
Expenses on business reorganisation, such as expenses on staff
arrangements, integration, etc.
Gain/Loss on the part over the fair value due to transactions with
distinctly unfair prices
Current net profit or loss of subsidiaries acquired in business
combination under the same control from period-beginning to
combination date
Gains and losses arising from contingencies unrelated to the
normal operation of the company's business
Gain/loss from change of fair value of trading financial assets
and liabilities, and derivative financial assets and liabilities, and
investment gains from disposal of trading financial assets and
-95,971,002.08
liabilities, and derivative financial assets and liabilities, and
investment in other obligatory rights, other than valid hedging
related to the Company's common businesses
Reclassification of impairment loss allowances of receivables
and contract assets separately tested for impairment
224
Amount of the Notes
Item
Reporting Period
Gain/loss on entrustment loans 62,144,007.08
Gain/loss on change in fair value of investment property of
which the follow-up measurement is carried out adopting fair
value method
Effect on current profit or loss when a one-off adjustment is
made to current profit or loss according to requirements of
taxation, accounting and other relevant laws and regulations
Custodian fees earned from entrusted operation
Non-operating income and expenses other than those listed
5,709,807.68
above
Other profit and loss items in line with the definition of
584,664,150.75
non-recurring gains and losses
Subtotal 934,181,710.35
Less: Income tax effect 226,223,116.92
Effect of minority shareholders' equities (after tax) 9,604,455.35
Total 698,354,138.08
（1）Particulars about other gains and losses that meet the definition of exceptional gain/loss:
Item Amount Reasons
As the Company reduced part of its shareholding in Chutian Dragon
Shareholding Co., Ltd., the measurement of its investment in Chutian Dragon Co.,
in Chutian
584,164,150.75 Ltd. was adjusted in the current period from a long-term equity
Dragon Co.,
Ltd. investment (under the equity method) to a held-for-trading financial
asset, which incurred an exceptional gain.
（2）The explanation of the Company to "Project confirmed with the definition of non-recurring gains and
losses" and define non-recurring gains and losses as recurring gains and losses according to the nature and
features of normal business operations of it.
Item Amount Reasons
Government subsidies which are closely related to the
Software tax normal business of the company and which are in
3,434,829.42
refund accordance with national policies and certain standard
quota or quantitative amount
Total 3,434,829.42
2.Return on net assets and earnings per share
225
EPS (RMB/share)
Weighted average
Profit for the Reporting Period return on net Basic Diluted
assets (%) earnings per earnings per
share share
Net profit attributable to ordinary
shareholders of the Company as the -2.55 -0.0803 -0.0803
Parent
Net profit attributable to ordinary
shareholders of the Company as the
-11.76 -0.3703 -0.3703
Parent before exceptional gains and
losses
3. Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and
International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
（1）Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
（2）Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
226
