Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.Konka Group Co. Ltd.2026 Semi-Annual Report
August 2026
1Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section I Important Notes Table of Contents and
Interpretations
The Board of Directors directors and senior executives of the Company
guarantee the authenticity accuracy and completeness of the contents
of the semi-annual report and bear individual and joint legal liabilities
for any false records misleading statements or major omissions.WU Jianjun Person in Charge of the Company YU Huiliang Chief
Finance Officer and WANG Linhu Head of Accounting Agency (Chief
Accountant) declare that they guarantee the authenticity accuracy and
completeness of the financial report in this Semi-Annual Report.All the Company's directors have attended the board meeting for the
review of this Semi-Annual Report.Any plans for the future or other forward-looking statements mentioned
in this Semi-Annual Report shall not be considered as absolute
promises of the Company to investors. Therefore investors are
reminded to exercise caution when making investment decisions.The Company plans not to distribute cash dividends issue bonus
shares or convert capital reserve into share capital.
2Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Table of Contents
Section I Important Notes Table of Contents and In... 2
Section II Company Profile and Financial Indicator....6
Section III Discussion and Analysis of the Managem.. 10
Section IV Corporate Governance Environment and So...22
Section V Important Matters .........................26
Section VI. Share Changes and Shareholders ..........48
Section VII Bonds .................................. 52
Section VIII Financial Report .......................55
3Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Documents Available for Reference
I. The financial statements with the signatures and seals of the Company's legal
representative Chief Financial Officer and head of the accounting agency;
II. The originals of all the Company's documents and announcements disclosed to the
public in the Reporting Period;
III. Other related information.
4Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Words and Definitions
Content Refer to Definition
Company the Company the Group Refer to Konka Group Co. Ltd.China Resources or CR Refer to China Resources Company Limited
OCT Group Refer to Overseas Chinese Town Holdings Company
Panshi Runchuang Refer to Panshi Runchuang (Shenzhen) InformationManagement Co. Ltd.CR Inc. Refer to China Resources Inc.SASAC Refer to State-owned Assets Supervision and AdministrationCommission of the State Council
CSRC Refer to China Securities Regulatory Commission
SZSE Refer to Shenzhen Stock Exchange
CSRC Shenzhen Bureau Refer to Shenzhen Bureau of the China SecuritiesRegulatory Commission
Denominated in the Chinese currency (RMB) in
RMB RMB 10000 and RMB 100 million Refer to tens of thousands of RMB in hundreds of millions of
RMB
5Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section II Company Profile and Financial Indicators
I. Company Profile
Stock Name *ST Konka A *ST KonkaB Stock Code 000016200016
Previous stock name (if any) Konka Group-A Konka Group-B
Stock exchange for stock
listing Shenzhen Stock Exchange
Company name (in Chinese) 康佳集团股份有限公司
Short name of the Company in
Chinese (if any) 康佳集团
Company name (in English if
any) KONKA GROUP CO.LTD.Abbreviation in Chinese (if
any) KONKA GROUP
Legal Representative WU Jianjun
II. Contact Information
Secretary of the Board of Directors Securities Representative
Name Yu Huiliang Miao Leiqiang
Konka R&D Building No. 28 Keji Konka R&D Building No. 28 Keji
Address South 12th Road Science and South 12th Road Science andTechnology Park Yuehai Street Technology Park Yuehai Street
Nanshan District Shenzhen 518057 Nanshan District Shenzhen 518057
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
E-mail szkonka@konka.com szkonka@konka.com
III. Other Information
1. Contact Information of the Company
Whether the registered address office address and postal code website and email of the
Company changed during the Reporting Period
□ Applicable √ Not applicable
The registered address office address and postal code website and email of the
Company remained unchanged during the Reporting Period. For details please refer to the
2025 Annual Report.
2. Information Disclosure and Place where this Report is Lodged
Whether the media for information disclosure and the place where this Report is lodged
changed during the Reporting Period
□ Applicable √ Not applicable
The name and website of the stock exchange and media where the Company discloses its
semi-annual report and the place where the semi-annual report is lodged remained
unchanged during the Reporting Period. For details please refer to the 2025 Annual
6Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Report.
3. Other Related Information
Whether other related information changed during the Reporting Period
□ Applicable √ Not applicable
IV. Key Accounting Information and Financial Indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of
previous years
□ Yes √ No
The Reporting Period Same period last year Year-on-year change for theReporting Period
Operating revenue (RMB) 3851571370.34 5247507849.27 -26.60%
Net profit attributable to the
listed company’s -172780295.60 -383328019.43 54.93%
shareholders (RMB)
Net profit attributable to the
listed company’s
shareholders before non- -209244110.09 -1027502125.26 79.64%
recurring gains and losses
(RMB)
Net cash generated
from/used in operating -536154671.39 -675623430.93 20.64%
activities (RMB)
Basic earnings per share -0.0718 -0.1592 54.90%
(RMB/share)
Diluted earnings per share -0.0718 -0.1592 54.90%
(RMB/share)
Weighted average return on Not applicable -28.67% Not applicable
equity
Changes from the end of
End of the Reporting Period End of the previous year the previous year to the end
of the Reporting Period
Total assets (RMB) 18418780854.69 22350904261.25 -17.59%
Net assets attributable to
the listed company’s -6227300722.45 -6083071689.95 -2.37%
shareholders (RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting
Standards
1. Differences in net profit and net assets in financial reports disclosed in
accordance with international accounting standards and Chinese accounting
standards
□ Applicable √ Not applicable
During the Reporting Period there were no differences in net profit and net assets in the
financial reports disclosed by the Company in accordance with both international
accounting standards and Chinese accounting standards.
7Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
2. Differences in net profit and net assets in financial reports disclosed in
accordance with foreign accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the Reporting Period there were no differences in net profit and net assets in the
financial reports disclosed by the Company in accordance with both overseas accounting
standards and Chinese accounting standards.VI. Items and Amounts of Non-recurring Gains/Losses
√ Applicable □ Not Applicable
Unit: RMB
Item Amount Description
Profit or losses on disposal of non-current assets (including the portion offset for -324209.55
provisions for asset impairment)
Government grants included in profit and loss of the current period (except for
government subsidies that are closely related to the Company's normal business 16168495.38
operation comply with national policies and are enjoyed in accordance with
defined criteria and have a continuing impact on the Company's profit or loss)
Gains/losses on fair-value changes in financial assets and liabilities held by a
non-financial enterprise as well as on disposal of financial assets and liabilities 64813315.89
(exclusive of the effective portion of hedges that arise in the Company’s ordinary
course of business)
Dispossession surcharge to non-financial institutions included in the current
gains/losses
Gains/ losses on entrusting others with investments or asset management
Gains/losses on loan entrustment 6868213.73
Losses on assets resulted from force majeure such as natural disasters
Reversed portions of impairment allowances for receivables which are tested
individually for impairment
Gains arising from business combination when the investment cost is less than
the recognized fair value of net assets of the investee
Current net gains/losses of subsidiaries acquired in business merger under the
same control from period-beginning to combination date
Gains/losses on non-monetary asset swap
Gains/losses on debt restructuring
Non-recurring expenses incurred by the enterprise as a result of the
discontinuation of a related operating activity such as expenses for relocating
employees
One-time impact on the current gains/losses due to adjustments in tax
accounting and other laws and regulations
One-time recognition of share-based payment expense due to cancellation and
modification of equity incentive plans
Cash-settled share-based payments gains and losses arising from changes in
the fair value of employee compensation payable after the date of exercisability
Gains/losses on change in fair value of investment property subject to follow-up
measurement at fair value method
Gains from transactions at significantly unfair prices
Gains/losses arising from contingencies unrelated to the normal operation of the
Company's business
Custodian fees earned from entrusted operation
Non-operating revenue and expenses other than the above 3352083.44
Other gains/losses that meet the definition of non-recurring gains/losses -40264602.91
Less: Income tax effects 8666238.74
8Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Minority equity effects (after tax) 5483242.75
Total 36463814.49
Particulars about other gains/losses that meet the definition of non-recurring gains/losses:
√ Applicable □ Not Applicable
Item Amount involved(RMB) Reason
During the Reporting Period the amount of losses arising from the
Excessive losses Company's receivables from subsidiaries with excessive losses was
of subsidiaries 14525336.77 recognized as "Net income attributable to owners of the parent company"
resulting in non-recurring gains/losses.Interest on the
equity repurchase -54789939.68 During the Reporting Period the Company accrued interest on the equity
price repurchase price
Explanation on the definition of non-recurring profit and loss items as recurrent profit and
loss items in the Explanatory Announcement No. 1 on Information Disclosure of
Companies Publicly Issuing Securities - Non-recurring Gains/Losses
√ Applicable □ Not Applicable
Item Amount involved(RMB) Reason
Software tax
rebates VAT Government grants closely related to the normal operation of the Company's3019917.92
credits and business which comply with national policies and are received continuously
deductions based on a certain standard quota or quantitative amount
9Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section III Discussion and Analysis of the Management
I. Principal Activities of the Company during the Reporting Period
At present the Company's main business includes consumer electronics semiconductors
and PCBs. The relevant situations are described below:
(I) Consumer Electronics Business
This division primarily comprises the color TV and white TV sub-divisions with details as
follows:
1. Color TV
The Company's color TV business serves the global market mainly including domestic and
export businesses. The domestic color TV business mainly focuses on two business
models: B2B (an abbreviation for Business-to-Business) and B2C (an abbreviation for
Business-to-Consumer). Business centers and business and after-sales maintenance
service grids have been established across the country. The operating profit is derived
from the price difference between the cost of color TV products and their selling prices.The color TV export is mainly conducted through the B2B model with a marketing reach
covering multiple regional markets such as the Asia-Pacific the Middle East Central and
South America and Eastern Europe. Its operating profit is derived from the price difference
between production cost and selling price.According to the data from All View Cloud (AVC) in the first half of 2026 the monitored
total retail sales volume in the domestic color TV market was 7.14 million units down 17%
year-on-year; the market presented a significant divergence between online and offline
channels: the volume and value of online retail sales decreased year-on-year while the
average market price increased year-on-year; offline channels achieved a slight growth in
the retail sales value driven by high-end large-screen products. The market share of high-
value models such as Mini LED 75-inch and larger ultra-large screens and art TVs
continued to expand. In the cycle of market contraction the industry is accelerating its
transition from pure scale competition to value enhancement.
2. White TVs
The Company's white TV business mainly deals in products such as refrigerators washing
machines air conditioners freezers and dishwashers under B2B and B2C models
primarily targeting the global market and generating profit from product price differences.By acquiring the "Frestec" brand the Company has built a "KONKA + Frestec" operation
strategy. By acquiring the Chinese factory of Beko (front-loading washing machine) the
Company has made up for the technical shortcomings in front-loading washing machine
10Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
production. The Company also built the Xi'an Smart Home Appliance Industrial Park to
steadily develop the dishwasher business. The Company by now has formed a "KONKA +
Frestec" operation pattern for its white TV business with the capability of production and
operation of refrigerators washing machines freezers air conditioners and kitchen
appliances.According to the monitoring data from AVC in the first half of 2026 the domestic
refrigerator industry was in a deep structural adjustment cycle; end-user replacement
demand slowed down while online sales volume dropped by 8.07% year-on-year; driven
by a rise in average selling prices retail sales value slightly decreased by 2.45%; in the
first half of 2026 the retail sales volume in the domestic air conditioner market decreased
by 19.2% year-on-year while the retail sales value decreased by 23% year-on-year
indicating weakened domestic end-user demand; in the first half of 2026 the omni-channel
retail sales volume of domestic washing machines decreased by 4.7% year-on-year while
the retail sales value dropped by 3.7%; the average selling prices of innovative models
such as ultra-thin built-in units partitioned washing machines and washer-dryer combos
continued to rise steadily; the industry is driving internal structural upgrades through
product form innovation and functional iteration.(II) Semiconductor Business
tThe Company by now has established a presence in the semiconductor optoelectronics
and memory sectors the former focusing on three major segments - Micro LED and Mini
LED chips mass transfer and display. After industrialization the operating profit is derived
from the price difference between product cost and selling price. The memory business
primarily focuses on the packaging and testing segment mainly processing steps such as
wafer dicing packaging and testing.(III) PCB Business
The Company's PCB business primarily focuses on metal substrate products thick copper
products and high multi-layer products. Operating under a B2B business model the
Company targets four major electronics fields namely new energy automotive electronics
communications & data centers and new consumer electronics. Profitability is achieved
through the spread between product costs and sales prices.II. Core Competitiveness Analysis
The core competitiveness of the Company is primarily supported by five pillars:
manufacturing R&D brand marketing network and human resources. On the
manufacturing side the Company has continuously advanced the intelligent transformation
and upgrading of its production bases in Anhui Shaanxi and Henan. Its Konka factory in
Anhui was awarded the "National Intelligent Manufacturing Demonstration Factory" placing
11Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
the Company's overall intelligent manufacturing capabilities among the top tier in the
industry. On the R&D side the Company has established a three-tier R&D system of
"Research Institute + Research Center + Basic Research." It has jointly set up
comprehensive AIoT laboratories and 5G ultra-high-definition laboratories with multiple
universities and research institutions and has built a technology cooperation alliance
tailored to its industrial layout. The current R&D team comprises over 1000 personnel. On
the brand side the Company has steadily implemented various tasks in brand
development operation system brand image and corporate culture construction
continued to shape a technology-driven and international corporate image stabilized its
brand market position and accumulated a good reputation and popularity in the consumer
market. In terms of marketing channels the Company has continuously promoted
innovations in channel models and coordinated the synergistic development of online
offline domestic and overseas markets. Offline the Company has established sales and
after-sales service outlets covering the whole country; online the Company has
strategically positioned itself on mainstream e-commerce platforms such as Tmall JD.com
Douyin and Pinduoduo and intensified its focus on live-streaming e-commerce to unlock
new business growth; overseas the Company has expanded its business to multiple
regions including Latin America Europe and the Asia-Pacific with a well-established
overseas marketing network. In terms of human resources the core members of the
Company's management have been deeply engaged in the industry and possess mature
operation and management experience. Meanwhile the Company has established a
primary business team with strong professional quality and efficient execution providing a
talent guarantee for the Company's operation and development.III.Main Business Analysis
(I) Overview
In the first half of 2026 the Company continuously optimized its business structure through
professional integration and comprehensively enhanced the efficiency of the entire "R&D
production supply sales and service" chain through lean management. Operating
expenses continued to decline and operating profit improved year-on-year. Coupled with a
year-on-year increase of RMB 471 million in investment income from associates the
Company reduced its losses compared with the same period of the previous year. However
due to the following reasons the Company remained in an overall loss-making position.
1. In the first half of 2026 the upstream supply chain for the Company's consumer
electronics business continued to fluctuate and product costs continued to rise.Adjustments to the product structure and pricing strategy were insufficient to offset the
pressure from rising costs further compressing gross profit margins. Although operating
12Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
expenses continued to be optimized gross profit failed to effectively cover operating
expenses and the business remained in an operating loss.
2. At present the Company's semiconductor business is still in the early stage of
industrialization. Although some products have entered industrialized sales they have yet
to achieve economies of scale or profitability and the semiconductor business as a whole
remains in an operating loss.(II) Year-on-year changes in key financial data
Unit: RMB
The Reporting Period Same period last year YoY change (%) Reason for changes
operating revenue 3851571370.34 5247507849.27 -26.60%
Cost of sales 3604823925.05 4982943214.69 -27.66%
In the reporting
period the Company
Selling expense 208584200.47 305525414.66 -31.73% recorded a decreasein staff costs and
advertising
expenditure
Administrative 303383408.92 273646470.76 10.87%
expense
Finance costs 294789514.46 310729361.79 -5.13%
In the corresponding
period of the previous
year the Company
reclassified its equity
investment in Wuhan
Tianyuan Group Co.Ltd. from long-term
Income tax expense -8544396.99 220369507.92 -103.88% equity investment to
financial assets held
for trading and
concurrently
recognized deferred
tax liabilities which
gave rise to income
tax expense
R&D Investment 168365167.60 187951295.68 -10.42%
Net cash generated
from/used in -536154671.39 -675623430.93 20.64%
operating activities
For the reporting
period the
Net cash generated Company's purchases
from/used in investing 186221911.83 50699029.68 267.31% and construction of
activities long-term assets
declined year over
year
Net cash generated During the reporting
from/used in financing -2782515814.93 337127142.41 -925.36% period the Company
activities repaid its borrowings
13Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Net increase in cash During the reporting-3145179480.74 -280778296.98 -1020.16%
and cash equivalents period the Companyrepaid its borrowings
Material changes in the composition or sources of the Company's profits during the
Reporting Period
□ Applicable √ Not applicable
(III) Breakdown of operating revenue
Unit: RMB
The Reporting Period Same period last year
As % of As % of YoY change
Amount operating Amount operating (%)
revenue revenue
Total operating 3851571370.34 100% 5247507849.27 100% -26.60%
revenue
By industry
Consumer 3413261333.51 88.62% 4713029571.13 89.81% -27.58%
electronics
Semiconductor 125159148.68 3.25% 97383684.29 1.86% 28.52%
and memory chip
Other industries 313150888.15 8.13% 437094593.85 8.33% -28.36%
By product
White TV 1910578496.64 49.61% 2095189645.55 39.93% -8.81%
Color TV 1205726825.37 31.30% 2244724045.65 42.78% -46.29%
PCB business 215705064.25 5.60% 263122283.88 5.01% -18.02%
Semiconductor
and memory chip 125159148.68 3.25% 97383684.29 1.86% 28.52%
business
Other businesses 394401835.40 10.24% 547088189.90 10.42% -27.91%
By region
Domestic sales 2712328151.23 70.42% 3538077644.56 67.42% -23.34%
Overseas sales 1139243219.11 29.58% 1709430204.71 32.58% -33.36%
(IV) Industries products or regions that account for over 10% of the Company's operating
revenue or operating profit
√ Applicable □ Not Applicable
Unit: RMB
Gross YoY change YoY change in
operating revenue Cost of sales profit in operating YoY change in gross profit
margin revenue cost of sales margin
By industry
Consumer 3413261333.51 3290227323.61 3.60% -27.58% -27.86% 0.37%
electronics
By product
White TV 1910578496.64 1809196805.16 5.31% -8.81% -8.32% -0.51%
Color TV 1205726825.37 1188432239.08 1.43% -46.29% -46.85% 1.04%
By region
Domestic sales 2712328151.23 2537337472.26 6.45% -23.34% -23.99% 0.81%
Overseas 1139243219.11 1067486452.79 6.30% -33.36% -35.09% 2.51%
sales
14Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
The Company's main business data for the last period adjusted according to the data at the
end of the Reporting Period after the statistics of the Company's principal business data
was adjusted during the Reporting Period
□ Applicable √ Not applicable
IV. Analysis of Non-Core Businesses
√ Applicable □ Not Applicable
Unit: RMB
Amount As % of total profit Reason Sustainable or not
This was primarily
attributable to the
Investment income 430062360.56 -157.86% recognition of Not
investment income
from associates
Mainly due to
Gains/losses on 62041331.96 -22.77% changes in the fair
changes in fair value value of financial
Not
assets invested
Mainly due to
Asset impairments -8489563.16 3.12% impairment losses onaccounts receivable Not
and inventories
Mainly due to the
Non-operating increase in gains not6832779.85 -2.51% directly related to the Not
revenue Company's daily
operating activities
Non-operating 3897492.47 -1.43% Not
expense
V. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of the Reporting Period End of the previous year
Change in Reason for any
As % of As % of percentage significantAmount total assets Amount total (%) changeassets
Monetary 2687943074.33 14.59% 6313941885.05 28.25% -13.66%
assets
Accounts 1036383168.85 5.63% 1086929012.15 4.86% 0.77%
receivable
Contract 1779920.48 0.01% 1892306.30 0.01% 0.00%
assets
Inventories 1474853179.97 8.01% 1662246630.58 7.44% 0.57%
Investment 960362019.52 5.21% 866051475.13 3.87% 1.34%
properties
Long-term
equity 2423931783.68 13.16% 2026038156.99 9.06% 4.10%
investments
Fixed assets 4158003825.17 22.57% 4405958959.37 19.71% 2.86%
Construction in 517665830.25 2.81% 516337481.93 2.31% 0.50%
progress
15Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Right-of-use 103619972.26 0.56% 130076544.83 0.58% -0.02%
assets
Short-term 2472464288.88 13.42% 4575915552.66 20.47% -7.05%
borrowings
Contract 168122219.32 0.91% 256506499.39 1.15% -0.24%
liabilities
Long-term 10124730184.53 54.97% 6537926737.54 29.25% 25.72%
borrowings
Lease liabilities 75622339.07 0.41% 96858968.75 0.43% -0.02%
2. Main overseas assets
□ Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
√ Applicable □ Not Applicable
Unit: RMB
Gain/loss
on fair- Cumulative Impairment
Beginning value fair-value allowance
Purchased Sold in the
Item amount changes in changes for the
in the Other Ending
the charged to current current
current
period period
changes amount
Reporting equity period
Period
Financial
assets
1. Trading
financial
assets
(excluding 2020270 5283238 1160834 138775900.00 5.60 56.00 29.60
derivative
financial
assets)
2.
Derivative
financial
assets
3.
Investment
s in other
debt
obligations
4.
Investment
s in other 1021381 1021381
equity 0.20 0.20
instrument
s
5. Other
non-current 1161781 9208946. 1293106 1041679
financial 213.03 36 81.62 477.77
assets
Subtotal of 1374022 6204133 2453941 1190669
16Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
financial 023.23 1.96 37.62 217.57
assets
Investment
properties
Productive
biological
assets
Others 1559575 9504061 1559575 950406156.43 6.25 56.43 6.25
Total of the 1529979 6204133 9504061 4013516 1285709
above 579.66 1.96 6.25 94.05 833.82
Financial
liabilities
Other changes
Unit: RMB
Gain/loss on Cumulative Impairment
fair-value fair-value allowance
Beginning Purchased inItem changes in changes for the Sold in the Other
Ending
amount the current current period changes
the Reporting charged current period amount
Period to equity period
Receivables 155957556.43 95040616.25 155957556.4 95040616.2
financing 3 5
Whether there is any significant change to the measurement attributes of the major assets
in the Reporting Period
□ Yes √ No
4. Restricted Asset Rights at the End of the Reporting Period
Item Ending book value Reasons for restriction
(RMB)
Among them RMB 202348614.05 is the margin deposit which is pledged for
Monetary 812653044.81borrowing or issuing bank acceptance bills; RMB 440277833.44 is a time depositthat cannot be withdrawn in advance; RMB 170026597.32 was restricted due to
assets other reasons.Accounts 2636999.84 In pledge for loan
receivable
Inventories 149696486.22 As collateral for loan
Investment 498633508.67 As collateral for loan
properties
Fixed assets 1535396516.05 As collateral for finance lease loan and former shareholder guarantee
Intangible 454569443.56 As collateral for loan
assets
Total 3453585999.15
17Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
VI. Investments Analysis
1. Overview
√ Applicable □ Not Applicable
Investment amount in the Investment amount of the same
Change (%)
Reporting Period (RMB) period of last year (RMB)
79173324.38230479770.06-65.65%
2. Major equity investments made in the Reporting Period
□ Applicable √ Not applicable
3. Major non-equity investments ongoing in the Reporting Period
√ Applicable □ Not Applicable
Unit: RMB
Cumulati Reasons
ve for failure
Inve Fixed Input Accumulati realized to
stme asset amount ve actual Proje returns achieve Disclosu Disclosur
Project nt invest Industry in the input Source of ct Estimate by the the
meth ment involved Reportin amount as funds progr d returns
re date e index
end of planned (if any) (if any)
od or not g Period of the ess progressperiod-end theReportin and
g Period estimated returns
Suining Konka Cninfo
Electronic Self- Electroni Not
Technology build Yes c 0.00
608027 Self- October (http://ww
industry 107.77 funded
- - - applicabl
e 17 2018 w.cninfo.Industrial Park com.cn)
Total -- -- -- 0.00 608027107.77 -- -- - - -- -- --
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not Applicable
Unit: RMB
Gain/l Cumul
Accou oss onfair- ative Purch Gains/
Initial nting Begin value fair- ased Sold losses
Variet invest measu ning chang value in the in the in the Endin Accou Sourc
y Code Abbr. ment remen book es in chang curren g book nting e of
cost t value the es
curren t Reportt ing value title fundsmetho
d Report
charg
ed to period
period Period
ing
Period equity
Dome Tradin
stic/Fo 3011 Wuhan 2394 Fair 2020 5283 1160 4657 1387 g Self-
reign 27 Tianyu 4735 value
2700 2385 8345 4488 7592 financi funde
an 5.00 0.00 .60 6.00 .09 9.60 al dstock assets
Other securities
investments held at the
end of the Reporting -- -- --
Period
239420205283116046571387
Total 4735 -- 2700 2385 8345 4488 7592 -- --
5.000.00.606.00.099.60
18Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Disclosure date of
announcement on
board’s approving April 1 2025
securities investment (if
any)
Disclosure date of
announcement on the
general meeting of
shareholders approving Not applicable
securities investment (if
any)
(2) Investments in Derivatives
□ Applicable √ Not applicable
The Company had no investments in derivatives during the Reporting Period.
5. Use of raised funds
□ Applicable √ Not applicable
The Company had no use of funds raised during the reporting period.VII. Sale of Major Assets and Equity Interests
1. Sale of major assets
□ Applicable √ Not applicable
The Company did not sell any major assets during the Reporting Period.
2. Sale of major equity
□ Applicable √ Not applicable
VIII. Major Controlling and Joint-stock Companies
√ Applicable □ Not Applicable
Major subsidiaries and joint-stock companies with an over 10% effect on the Company’s
net profit
Unit: RMB
Company Company Main Registered Total
name type business capital assets Net assets
operating Operating
revenue profit Net profit
Anhui
Konka Production
Tongchuan and salesSubsidiary of RMB8000 1489045 8482051 8289585 1027681 9785246g Electrical electronic 00000 268.16 48.09 76.07 13.98 2.46Appliances
Co. Ltd. products
Anhui Production
Konka and salesSubsidiary of RMB1400 2014683 1548077 2495097
--
Electronics electronic 00000 397.39 84.11 22.88
41959544192432
Co. Ltd. 6.14 5.75products
Subsidiaries obtained or disposed of in the Reporting Period
□ Applicable √ Not applicable
About the major controlling and joint-stock companies
None
19Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
IX. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
X. Risks and Countermeasures
Currently the consumer electronics industry is facing intense market competition putting
significant pressure on business operations; although the semiconductor segment has
achieved several key breakthroughs in core technologies it is overall still in the initial stage
of industrialization and the benefits of scale have yet to materialize. In response to the
existing operation and development risks of the above two major business segments the
Company will stay firmly focused on its primary business without deviation. Through a
series of initiatives such as organizational restructuring and lean management it will
continue to strengthen its operational foundation and steadily improve overall profitability.For the consumer electronics business: First strengthen organizational restructuring to
boost operational efficiency by clarifying internal powers and responsibilities streamlining
redundant processes reshaping an operational architecture adapted to the pace of market
competition and comprehensively improving personnel collaboration and organizational
efficiency. Second refine channel operations to improve the profit structure phase out
long-term loss-making and inefficient channels allocate resources toward high-yield and
high-potential business optimize channel profitability models and gradually elevate the
overall operational performance. Third deepen business synergy to unleash scale
advantages establish a linkage mechanism between black and white appliance categories
coordinate joint customer acquisition across domestic and international markets and build
a multi-category shared sales pathway to achieve the mutual and repeated use of
customer channel and marketing resources. Fourth solidify lean management to strictly
control operating costs regularly carry out special improvement initiatives for production
quality enhancement and cost and consumption reduction and compress various operating
costs in manufacturing management and circulation across the entire chain so as to
achieve dual improvements in both quality and efficiency.For the semiconductor business: First tackle core technological barriers deepen efforts in
key frontier technologies such as chip miniaturization and mass transfer and build a strong
moat for technological competitiveness; second solidify the improvement of operating
quality vigorously promote cost reduction and expense control and continuously optimize
profitability.XI. Formulation and Implementation of Market Capitalization Management System
and Valuation Enhancement Plan
Whether the Company has formulated a market capitalization management system
□ Yes √ No
20Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Whether the Company has disclosed its valuation enhancement plan.□ Yes √ No
XII. The implementation of the action plan of "Double improvement of quality and
return".Whether the Company has disclosed an announcement on "Quality and Return Dual
Enhancement" Action Plan.□ Yes √ No
21Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section IV Corporate Governance Environment and Society
I. Changes of Directors and Senior Executives of the Company
√ Applicable □ Not Applicable
Name Position(s) Type Date Reason
Dong Gang Vice President Employment January 12 2026 Job adjustment
YAO Erfang General Legal Adviser Employment February 11 2026 Job adjustment
Cao Shiping Director President Former January 16 2026 Job adjustment
YANG Bo Vice President Former January 12 2026 Job adjustment
II. Profit Distribution and Conversion of Capital Reserve into Share Capital during
the Reporting Period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends issue bonus shares or convert capital
reserve into share capital for half of the year.III. Implementation of the Company's Equity Incentive Plan Employee Stock
Ownership Plan (ESOP) or Other Employee Incentives
□ Applicable √ Not applicable
None.IV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises
required to disclose environmental information by law
√ Yes □ No
Number of enterprises on the list of enterprises required to disclose environmental information by law 2
No. Name of enterprise Search index for the Environmental Information Disclosure Report
1 Guangdong Xingda Hongye Department of Ecology and Environment of Guangdong ProvinceElectronics Co. Ltd. (https://www-app.gdeei.cn/gdeepub/front/dal/dal/newindex)
2 Boluo Konka Precision Department of Ecology and Environment of Guangdong ProvinceTechnology Co. Ltd. (https://www-app.gdeei.cn/gdeepub/front/dal/dal/newindex)
V. Social Responsibilities
The Company insists the principle of health stability and sustainable development to
benefit shareholders and employees and satisfy customers. In pursuit of economic profits
and protection of shareholders’ profits the Company is active in protecting legal rights of
debtors and employees treating suppliers customers and consumers in good faith and
participating in environmental protection and community establishment for harmonious
development of the Company and society.(I) Protect rights of shareholders and creditors
1. The Company effectively protects rights of shareholders
The Company insists protection of rights for all shareholders especially equal status and
legal rights for minority shareholders and make insurance of rights to be informed
22Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
participation and vote.The Company actively performs its obligation of information disclosure to ensure the timely
accurate and complete disclosure of information; and strictly implements the insider
registration and inside information confidentiality system to ensure the fairness of
information disclosure.The Company pays attention to repay to shareholders and insists on mutual development
with investors. The Company has strictly adhered to the cash dividend policy stipulated in
the Articles of Association and the cash dividends distributed by the Company are in
compliance with the provisions of the Articles of Association and the requirements of the
resolutions of general meetings of shareholders.
2. The Company effectively protects rights of creditors
In full consideration of legal rights of creditors the Company complies with strict business
rules of credit cooperation to guarantee legal rights of creditors. No damages upon rights of
creditors happened.(II) Actively perform responsibilities to suppliers and customers
1. Be devoted to improving customer service quality
The Company is insisting philosophy of customer orientation to strengthen customer
service management service consciousness for employees service levels and to protect
rights for customers. Through customer service hot-line field visit and follow-up service
the Company has set a good corporate image for customers.
2. Be honest to suppliers
Following the principle of integrity and mutually beneficial cooperation the Company keeps
good cooperative relations with suppliers at each level. The corporate principle is open fair
and impartial to standardize procurement protect suppliers’ legal rights and lay solid
foundation for further cooperation.(III) Be enthusiastic to social and public welfare undertakings
Based on the principle of appreciating and repaying the society the Company has
participated in all kinds of activities for public welfare cooperated with society undertaken
social responsibilities actively and promoted harmonious development between enterprise
and society.(IV) Be responsible for employees
The Company insists the principle of people orientation to improve working environment
promote occupational skills provide opportunity and platform for development and growth
and encourage self upgradation and realization for employees. Mutual improvement for
employees and enterprise could be achieved.
1. Be honest and law-abiding to protect legal rights for employees
23Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
The Company would strictly comply with laws and regulations in Labor Law and Labor
Contract Law to sign labor contract with employees with fair treatment in employment
payment training promotion dismissal and retirement. Also the Company would pay all
kinds of insurances and housing fund for employees. Regular physical examination would
be organized for each year. Any problems found would require re-examination and
consultation from a doctor. The Company would improve living quality; enhance cohesive
force and sense of belongings through a series of safeguard measures.
2. Protect occupational health for employees
The Company adheres to a people-oriented approach and strictly implements occupational
health monitoring for employees. On the one hand by improving the rules and regulations
for work safety and occupational health the Company urges its subordinate entities to
regularly detect occupational hazard factors provide and distribute personal labor
protection articles that meet standards promote the improvement of the workplace
environment and manage and prevent occupational diseases from the source. On the
other hand the Company incorporates occupational health into the safety education
content for new employees of production-oriented entities and regularly organizes
occupational health publicity and education training to strengthen employees' risk
identification capabilities and proactive protection awareness. Meanwhile it regularly
organizes occupational health examinations for personnel in positions exposed to
occupational hazard factors and implements health examination notifications and job
transfers for those with occupational contraindications thereby practically protecting
employees' health.
3. Promote occupational skills by diversified professional training
The Company has always paid great attention on diversified training for employees. On the
one hand the Company is meticulous in the training of routine business and vocational
skills and actively implements it in strict accordance with relevant national regulations to
ensure the improvement of employees' business level and improves employees'
vocational skills through normalized regular training management; On the other hand the
Company provides employees with more colorful training programs through independent
training platforms training lecturers special training lectures etc. so that employees can
effectively improve their overall professional quality and comprehensive quality in addition
to their own work.(V) Be responsible for environment
The Company actively responds to national environmental protection and low-carbon
policies takes multiple measures to fulfill its primary responsibility for ecological and
environmental protection and promotes its green and low-carbon development. First
24Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
strengthen pollutant emission reduction and treatment dispose of solid and hazardous
waste in compliance with regulations and improve the comprehensive utilization rate of
waste; second phase out and replace old energy-intensive equipment and promote
energy-saving and consumption-reducing upgrades of facilities and equipment based on
actual production needs; third encourage qualified enterprises to construct distributed
photovoltaic power generation projects and proactively increase the proportion of green
energy usage; fourth increase the research development and production of highly
energy-efficient products and actively promote the low-carbon development of the supply
chain.Subsequently the Company would undertake all social responsibilities by improving
strategic management sustainable development and enterprise economic efficiency. It
would reattribute all shareholders and would protect legal rights for creditors and
employees. To be honest to suppliers and customers the Company would serve local
economic development and participate in social public welfare activities and environment
protection. It would undertake all responsibilities in many fields and make attributions to
social economic and environmental sustainable development for a socialism harmonious
society.
25Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section V Important Matters
I. Commitments of the Company’s de facto controller shareholders related parties
and acquirers as well as the Company itself and other entities fulfilled in the
reporting period or ongoing as of the end of the Reporting Period
√ Applicable □ Not Applicable
Reason Party makingcommitment Type Content Date Term Performance
Panshi
Runchuang
(Shenzhen) Lock-up period for the As of now the
Information shares of the listed No commitment
Management Restrictions on company acquired through April 30 party has
Co. Ltd. and equity rights this transfer is subject to 2025
fixed strictly fulfilled
Commotra the relevant laws and
term its
Company regulations. commitments.Limited
Panshi
Runchuang
(Shenzhen) To ensure the As of now the
Information The independence of the listed commitment
Management independence company in terms of April 30 No party has
Co. Ltd. and of the listed personnel assets 2025 fixed strictly fulfilled
China company finance organization and term its
Resources business. commitments.Company
Limited
Commitment 1. During the period when
made in the Panshi Runchuang or its
acquisition related parties control the
report or report listed company Panshi
on changes in Runchuang will take
equity necessary and possible
measures in accordance
with the law to avoid any
business or activity
Panshi conducted by Panshi
Runchuang Runchuang and any of its
As of now the
(Shenzhen) Avoidance of controlled companies No
commitment
Information horizontal (excluding the listed
April 30 fixed party has
Management competition company and any of its
2025 term strictly fulfilled
Co. Ltd. controlled companies) that
its
constitutes horizontal commitments.competition with the main
business of the listed
company and any of its
controlled companies. 2. If
Panshi Runchuang or any
of its controlled companies
(excluding the listed
company and any of its
controlled companies)
26Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
obtains a business
opportunity that
constitutes substantial
horizontal competition with
the main business of the
listed company (excluding
minority equity financial
investment opportunities
that are the same as or
similar to the main
business of the listed
company but do not
constitute control or
significant influence)
Panshi Runchuang will
notify the listed company
in writing. If the listed
company provides a
written reply expressing its
willingness to accept the
business opportunity
within 30 days upon
receipt of such notice
Panshi Runchuang or any
of its controlled companies
(excluding the listed
company and its
controlled companies) will
endeavor to facilitate the
provision of such business
opportunity to the listed
company first on
reasonable and fair terms
and conditions. If the
regulatory authority deems
that the aforementioned
business engaged in by
the promising party or any
other subordinate
controlled by the
commitment party
constitutes horizontal
competition with the main
business of the listed
company the commitment
party will resolve the
issue by means permitted
by laws and regulations
(including but not limited
to transfer entrusted
operation entrusted
management leasing
contracting etc.).China 1. By the date of issuance
Resources Avoidance of of this commitment letter
Company horizontal JCET Group Co.Ltd. an
April 30 5 years In progress
Limited competition enterprise controlled by
2025
China Resources was
27Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
involved in business
overlap or potential
competition with the
Company's subsidiary -
Konka ChipCloud
Semiconductor
Technology (Yancheng)
Co. Ltd. - in terms of
external packaging and
testing services. China
Resources undertakes to
within five years after the
completion of this
transaction resolve the
business overlap and
potential competition
between China Resources
and its controlled
companies (excluding the
listed company and its
controlled companies) and
Konka Core Cloud
Semiconductor
Technology (Yancheng)
Co. Ltd. a subsidiary of
the listed company
through legal procedures
including but not limited to
trusteeship asset
restructuring business
cessation business by one
party product structure
adjustment or joint
venture establishment in
a bid to comply with
regulatory requirements
concerning horizontal
competition. 2. Except for
the circumstances
mentioned above and
those under Article 3
herein during the period
when China Resources
indirectly controls the
listed company China
Resources will take
necessary and possible
measures in accordance
with the law to avoid any
business or activity
conducted by China
Resources or any of its
controlled companies
(excluding the listed
company and its
controlled companies) that
constitutes horizontal
competition with the main
28Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
business of the listed
company and its
controlled companies. 3. If
China Resources or any of
its controlled companies
(excluding the listed
company and its
controlled enterprises)
obtains a business
opportunity that
constitutes substantial
horizontal competition with
the main business of the
listed company (excluding
minority equity financial
investment opportunities
that are the same as or
similar to the main
business of the listed
company but do not
constitute control or
significant influence)
China Resources will
notify the listed company
in writing. If the listed
company provides a
written reply expressing its
willingness to accept the
business opportunity
within 30 days upon
receipt of such notice
China Resources or any of
its controlled companies
(excluding the listed
company and its
controlled companies) will
endeavor to facilitate the
provision of such business
opportunity to the listed
company first on
reasonable and fair terms
and conditions. If the
regulatory authority deems
that the aforementioned
business engaged in by
the promising party or any
other subordinate
controlled by the
commitment party
constitutes horizontal
competition with the main
business of the listed
company the commitment
party will resolve the
issue by means permitted
by laws and regulations
(including but not limited
to transfer entrusted
29Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
operation entrusted
management leasing
contracting etc.).The commitment party or
any of its controlled
companies will minimize
and regulate related-party
transactions with the listed
company. If such
transactions are
unavoidable the
commitment party will
Panshi strictly regulate the
Runchuang related-party transactions
(Shenzhen) with the listed company in As of now the
Information To regulate accordance with the commitmentManagement related-party relevant provisions of the April 30
No party has
Co. Ltd. and transactions Company Law of the 2025
fixed strictly fulfilled
China People's Republic of term its
Resources China the Securities Law commitments.Company of the People's Republic of
Limited China and other laws
regulations normative
documents and the
Articles of Association of
Konka Group Co. Ltd.without prejudice to the
legitimate rights and
interests of the listed
company and its minority
shareholders.Whether the
commitment is Yes
fulfilled on time
If the
commitments
are not fulfilled
within the time
limit the
specific
reasons for the Not applicable
unfinished
performance
and the next
work plan shall
be specified
II. Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□ Applicable √ Not applicable
None.III. Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
30Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
IV. Engagement and Disengagement of Independent Auditors
Whether the semi-annual financial report has been audited
□ Yes √ No
The semi-annual financial report was not audited.V. Explanations by the Board of Directors Regarding the "Modified Audit Report"
Issued by the Independent Auditor for the Reporting Period
□ Applicable √ Not applicable
VI. Explanations by the Board of Directors Regarding the "Modified Audit Report"
Issued for the Previous Year
□ Applicable √ Not applicable
VII. Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.VIII. Litigation
Major litigation and arbitration matters
√ Applicable □ Not Applicable
Amount Whether an
General involved estimated Progress Decisions Execution of Disclosure Disclosureinformation (RMB’0 liability is and effects decisions date index
000) recognized
Zhu Xinming
and Leng
Due to a Sumin shall
contractual pay the
dispute the Company
Company filed a performance
lawsuit against compensatio
Zhu Xinming n of RMB
Leng Sumin 61.2 million;
Gongqingcheng Zhu
Jinzhuanrong Xinming
Investment Gongqingch
Management The caseThe case eng has not yet CninfoPartnership 93904.4
(Limited 1 No has been
Jinzhuan entered the July 15 (http://www.c
Partnership) and ruled upon.and 2026 ninfo.com.cn
Gongqingch execution )
Gongqingcheng eng Xinrui phase.Xinrui Investment shall pledge
Management all their
Partnership equity in
(Limited Jiangxi
Partnership) Konka New
requesting them Material
to pay the Technology
performance Co. Ltd. to
compensation. the
Company
and all
31Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
parties
concerned
shall
cooperate in
handling the
correspondin
g equity
pledge
registration
procedures;
the
respondents
shall pay the
Company
legal fees
and other
rights
protection
expenses.The following case has been disclosed in the interim announcement and periodic report and is currently under hearing. For specific
details of the case please refer to the Announcement on Cumulative Litigation and Arbitration (Announcement No.: 2026-19) disclosed
by the Company on March 28 2026 and the Company's periodic report: 1. Hebei Kangjiatong Technology Co. Ltd. a subsidiary of the
Company sued Shenzhen Junxing Communication Technology Ltd. Herewin Technology Group (HK) Co. Ltd. Zeng Jiankai Zhong
Yuhua Hengyang Yancheng Hotel Co. Ltd. Hengyang Chaolian Real Estate Co. Ltd. Anhui Baolin Industrial Co. Ltd. Zhong Yuekun
and Guizhou Chuanglian Technology Energy Co. Ltd. over a contract dispute requesting a court order for the defendants to pay the
outstanding payment for goods and assume joint and several liability for repayment.Other litigation and arbitration matters
√ Applicable □ Not Applicable
Whether an
General Amountinvolved estimated Decisions Execution of Disclosure Disclosureinformation (RMB’0000) liability is
Progress and effects decisions date index
recognized
Heilongjiang
Xinda New
Material Co.Ltd. sued
Anhui Konka
Electronic
Co. Ltd. a
subsidiary of
the
Company
over a sales The case The
contract 13444.02 No has been subsidiary Execution is April 15 Cninfo
dispute closed. won. not involved. 2025 (http://www.c
requesting a ninfo.com.cn
court order )
for the
defendant to
pay the
outstanding
payment for
goods and
relevant
interest.Nanjing 4025.50 No The case The plaintiff Execution is NovemberJiakang has been withdrew the not involved. 26 2025
32Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Venture closed. lawsuit.Capital
Partnership.(Limited
Partnership)
sued the
Company
and the third
party Hefei
Kangxinwei
Storage
Technology
Co. Ltd.over an
equity
transfer
dispute
requesting a
court order
for the
defendants
to pay the
equity price
and bear the
litigation
costs.Hainan
Huilong
Investment
Partnership
(Limited
Partnership)
sued the
Company The case is The case is The case is
over an under the under the under the May 30
equity 20001.50 Yes first-instance first-instance first-instance 2026
transfer trial. trial. trial.dispute
requesting a
court order
for the
defendant to
pay the
equity price.Yancheng
Kanghui
Investment
Management
Co. Ltd.Yancheng The case is The case is The case is
Oriental under the under the under the May 30
Investment & 42362.58 Yes first-instance first-instance first-instance 2026
Developmen trial. trial. trial.t Group Co.Ltd. and
Jiangsu
Huanghai
Financial
33Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Holding
Group Co.Ltd. sued the
Company
over an
equity
transfer
dispute
requesting a
court order
for the
defendant to
pay the
equity price.Songyang
County
Economic
Developmen
t Investment
Group Co.Ltd. sued the
Company
over a
contract The case The plaintiff
dispute 3324.78 Yes has been withdrew the Execution is May 30
requesting a closed. lawsuit in not involved. 2026
court order July 2026.for the
defendant to
return the
rewards and
compensate
for the loss
of fund
occupation.Makena
Electronic
(Shenzhen)
Co. Ltd.sued the
Company
and its
subsidiaries
Shenzhen
Konka
Electronics The case is The case is The case is
Technology 3491.28 Yes under the under the under the May 30
Co. Ltd. and first-instance first-instance first-instance 2026
Anhui Konka trial. trial. trial.Electronics
Co. Ltd.over a sales
contract
dispute
requesting a
court order
for the
defendants
34Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
to pay the
outstanding
payment for
goods and
relevant
interest.Remarks: the court or arbitration institution ruled in favor of the Company in the following cases and the rules are currently being
implemented. For details of the cases please refer to the Announcement on Large-amount Pending Litigation and Arbitration
(Announcement No.: 2019-63) disclosed by the Company on June 25 2019 the subsequent Announcement on Cumulative Litigation
and Arbitration (Announcement No.: 2020-97 2021-48 2021-101 2022-89 2023-37 2023-39 2025-36 2025-67 2025-90 2026-19
2026-45) disclosed on September 19 2020 June 1 2021 December 1 2021 November 24 2022 June 1 2023 June 22 2023 April
15 2025 July 31 2025 November 26 2025 March 28 2026 and May 30 2026 respectively as well as the periodic reports of the
Company: 1. Due to an entrustment contract dispute Anhui Konka Electronics Co. Ltd. a subsidiary of the Company sued Shenzhen
Meisenyuan Plastic Electronics Co. Ltd. Shantou Meisen Technology Co. Ltd. Lin Yuanqin Huang Ruirong and Jiangsu East China
Hardware City Co. Ltd. requesting a court order to rescind the contract return the payment for goods pay liquidated damages and
have priority to be repaid from the mortgaged property; 2. Due to a commission contract dispute Anhui Konka Electronics Co. Ltd. a
subsidiary of the Company sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Lin Yuanqin
Huang Ruirong and Jiangsu East China Hardware City Co. Ltd. requesting an order to terminate the contract return the payment for
goods and pay liquidated damages with priority in compensation for the mortgaged property; 3. Due to a dispute over a trust contract
Henan Frestec Refrigeration Appliance Co. Ltd. a subsidiary of the Company sued Shenzhen Meisenyuan Plastic Electronics Co. Ltd.Shantou Meisen Technology Co. Ltd. Lin Yuanqin Huang Ruirong Chuangfu Commerce&Trade Plaza Real Estate Development
(Huizhou) Co. Ltd. requesting an order to terminate the contract and the defendants return the payment for goods pay liquidated
damages and give priority to the mortgaged property. 4. Due to a dispute over a trust contract Hainan Konka Material Technology Co.Ltd. a subsidiary of the Company sued Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Shantou Meisen Technology Co. Ltd.Jiangsu East China Hardware City Co. Ltd. requesting an order to terminate the contract and the defendants return the payment for
goods pay liquidated damages and give priority to the mortgaged property; 5. Due to a dispute over a purchase and sales contract
Dongguan Konka Electronics Co. Ltd. a subsidiary of the Company filed a lawsuit with People's Court of Nanshan District Shenzhen
requesting the latter to order Dongguan Gaoneng Polymer Limited Company Wang Dong Shenzhen Xinlian Xingyao Trading Co. Ltd.Shenzhen Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong Trading Co. Ltd. Huang Zhihao to pay the overdue
payment and corresponding liquidated damages; 6. Due to a dispute over commission contract Shenzhen Konka Pengrun Technology
Industry Co. Ltd. a subsidiary of the Company sued Guang'an Ouqishi Electronic Technology Co. Ltd. GUAN Hongshao Huaying
Gaokede Electronic Technology Co. Ltd. Huaying Gaokelong Electronic Technology Co. Ltd Guizhou Jiaguida Technology Co. Ltd.Sichuan Horoy Real Estate Co. Ltd. Lin Bolong and Wang Shisheng requesting the defendants to pay the payment for goods and
liquidated damages; 7. Due to dispute over commission contract Henan Frestec Refrigeration Co. Ltd. a subsidiary of the Company
sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. LIN Yuanqin HUANG Ruirong Jiangsu
East China Hardware City Co. Ltd. and Chuangfu Commercial Plaza Real Estate Development (Huizhou) Co. Ltd. requesting an order
to terminate the contracts return the payment for goods and pay liquidated damages with priority in compensation for the mortgaged
property. 8. Due to a contract dispute Shenzhen Konka Unifortune Technology Co. Ltd. a subsidiary of the Company filed a lawsuit
against Shenzhen Junxing Communication Technology Co. Ltd. Gumei Electronics (Hongkong) Technology Limited Shenzhen
Hongxingfengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Zeng Jiankai Zhang Zhenyu Herewin
Technology Group (HK) Co. Ltd. Zhang Lixia Anhui Baolin Industrial Co. Ltd. Zeng Qingpeng and Zhong Yuhua to return the payment
for goods and pay the corresponding liquidated damages; 9. As the bills held by the Company failed to be paid upon maturity the
Company filed a lawsuit with the court requesting the latter to order Wuhan Jialian Agricultural Technology Development Co. Ltd. to pay
the aforesaid bills and corresponding interest to the Company. 10. Due to a dispute over the purchase and sales contract of international
goods Anhui Kangzhi Trading Co. Ltd. a subsidiary of the Company sued B&L TECHNOLOGY CO. LIMITED requesting that the
respondent be ordered to pay the payment for goods and liquidated damages.The following cases have been disclosed in interim announcements and periodic reports and are under trial. For details of the cases
please refer to the Announcement on Large-amount Pending Litigation and Arbitration (Announcement No.: 2019-63) disclosed by the
Company on June 25 2019 the subsequent Announcement on Cumulative Litigation and Arbitration (Announcement No: 2020-97 2021-
48 2021-101 2022-89 2023-37 2023-39 2025-36 2025-67 2025-90 2026-19 2026-45) disclosed on September 19 2020 June 1
2021 December 1 2021 November 24 2022 June 1 2023 June 22 2023 April 15 2025 July 31 2025 November 26 2025 March
28 2026 and May 30 2026 respectively as well as and the Company's periodic reports: 1. the customer of Hong Kong Konka H-
BUSTER SAO PAULO INDUSTRIAE COMERCIO S.A (Brazil) encountered insolvency and obtained approval for the judicial
reorganization application from the Third Civil Court of Cotia Sao Paulo State Brazil in May 2013. As the creditor of H-BUSTER Hong
Kong Konka submitted the claim application document and the recognized claim amount in August 2014 was approximately USD 2.78
million; 2. Shenzhen Konka Telecommunications Technology Co. Ltd. a subsidiary of the Company sued Liu Jie Zhang Yinxia Ren
Chunni Jiang Tianliang and Hunan Ditsing Technology Co. Ltd. over a sales contract dispute requesting a court order for the
defendants to pay the outstanding payment for goods and assume joint and several liability for repayment. 3. Due to a disputes over
international goods contract Jiaxin Technology Co. Ltd. a subsidiary of the Company sued TRIPOD ELECTRONICS TECHNOLOGY
(HONGKONG) LIMITED. Chen Wenhuan and Chen Baohong requesting that the defendants be ordered to pay the purchase price and
liquidated damages; 4. Due to a dispute over an international sales of goods contract Micro Crystal Transfer Group Ltd. sued Chongqing
Konka Optoelectronics Technology Co. Ltd. (formerly known as: Chongqing Konka Optoelectronics Technology Research Institute Co.Ltd.) a subsidiary of the Company requesting payment for goods and liquidated damages; 5. Due to a dispute over the contract of
international sales of goods Chongqing Konka Optoelectronics Technology Co. Ltd. (formerly known as Chongqing Konka
Optoelectronics Technology Research Institute Co. Ltd.) a subsidiary of the Company sued Micro Crystal Transfer Group Ltd.requesting the termination of the contract the return of the price difference and compensation for losses; 6. Zhongkang Storage
Technology Co. Ltd. a subsidiary of the Company sued Hongwang Semiconductor Co. Ltd. Li Bin and Xu Xiaoxuan over a contract
dispute requesting a court order for the defendants to pay the overdue payment for goods liquidated damages and other fees; 7. The
Company sued Jiangxi Gaotou Substrate Material Technology Co. Ltd. Jiangxi Xinzixin Real Estate Co. Ltd. Xiong Muzhi Zhu
Qingming and Zeng Xiaohong over a right of recourse dispute requesting a court order for the defendants to repay the plaintiff for the
finance lease payments interest and legal fees incurred from fulfilling the payment obligations under the Finance Lease Agreement (Gui
Zu (2019) Nian Zu Zi No. (026)); 8. The Company sued Jiangxi Gaotou Substrate Material Technology Co. Ltd. Jiangxi Xinzixin Real
35Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Estate Co. Ltd. Xiong Muzhi Zhu Qingming and Zeng Xiaohong over a right of recourse dispute requesting a court order for the
defendants to repay the plaintiff for the finance lease payments interest and legal fees incurred from fulfilling the payment obligations
under the Finance Lease Agreement (Gui Zu (2019) Nian Zu Zi No. (028)); 9. Zhongkang Storage Technology Co. Ltd. a subsidiary of
the Company sued Tianxiang Technology Limited Chen Lifa Zeng Zhaohao and Xiao Fangbin over a contract dispute requesting a
court order for the defendants to pay the outstanding payment for goods and assume joint and several liability for repayment; 10.Nantong Construction Group Co. Ltd. sued Nantong Konka Technology Industrial Park Operation Management Co. Ltd. Nantong
Haimen Ronghui Real Estate Co. Ltd. the Company and Shanghai Rongzhen Enterprise Management Co. Ltd. over a construction
contract dispute requesting a court order for the defendants to pay the construction fee and assume joint and several liability for
repayment; 11. Sichuan Yisheng Construction Group Co. Ltd. sued Yibin Konka Technology Park Operation Co. Ltd. a subsidiary of the
Company over a construction contract dispute requesting a court order for the defendant to pay the construction fee; 12. Shenzhen
Sansen Decoration Group Co. Ltd. sued Shenzhen Konka Semiconductor Technology Co. Ltd. and Chongqing Konka Technology Co.Ltd. both subsidiaries of the Company over a construction contract dispute requesting a court order for the defendants to pay the
construction fee and assume joint and several liability for repayment; 13. The Company sued Guangdong Nanfang Aishi Entertainment
Technology Co. Ltd. Shenzhen Dahua IoT M&A Fund Management Partnership (Limited Partnership) Shenzhen Ruibao Lanyuan
Investment Partnership (Limited Partnership) Zhongshan Weiyuan Innovation Investment Fund Management Center (Limited
Partnership) and Fuzhou Dahua Intelligent Technology Co. Ltd. over a contract dispute requesting a court order for the defendants to
pay for the equity and assume liability for compensation; 14. Shenzhen Konka Electronics Technology Co. Ltd. a subsidiary of the
Company sued Gome Custom (Tianjin) Home Appliance Co. Ltd. and Gome Intelligence Technology Co. Ltd. over a sales contract
dispute requesting a court order for the defendants to pay the outstanding payment for goods and assume joint and several liability for
repayment; 15. Due to a loan contract dispute Sichuan Shuwu Guangrun Logistics Co. Ltd. sued Shenzhen Qianhai Xinfeng Supply
Chain Management Co. Ltd. and Dongguan Konka Electronics Co. Ltd. a subsidiary of the Company requesting a court order for the
defendants to pay the contract amount and interest; 16. Longxin Construction Group Co. Ltd. sued Nantong Kanghai Technology
Industry Development Co. Ltd. a subsidiary of the Company over a construction contract dispute requesting a court order for the
defendant to pay the construction fee and interest; 17. Since Jiangxi Xinxin Jian'an Engineering Co. Ltd. (hereinafter referred to as
"Jiangxi Xinxin") Jiangxi Shanshi Technology Development Co. Ltd. (hereinafter referred to as "Jiangxi Shanshi") and Jiangxi Zhongyi
Decorative Materials Co. Ltd. (hereinafter referred to as "Jiangxi Zhongyi") failed to repay the loan and interest to Jiangxi Branch of
China Great Wall Asset Management Co. Ltd. (hereinafter referred to as "Jiangxi Branch of Great Wall Asset") who sued the court for a
judgment to repay the loan of RMB 300 million default penalty of RMB 108000 and interest of RMB 13.65 million and at the same time
guarantors including Jiangxi Konka Xinfeng Microcrystalline and Nano Microcrystalline were requested to undertake guarantee liabilities.The following cases have been disclosed in interim announcements and periodic reports and are in a state of termination of this round of
enforcement proceedings. For details of the cases please refer to the Announcement on Large-amount Pending Litigation and Arbitration
(Announcement No.: 2019-63) disclosed by the Company on June 25 2019 the subsequent Announcement on Cumulative Litigation
and Arbitration (Announcement No.: 2020-97 2021-48 2021-101 2022-89 2023-37 2023-39 2025-36 2025-67 2025-90 2026-19
2026-45) disclosed on September 19 2020 June 1 2021 December 1 2021 November 24 2022 June 1 2023 June 22 2023 April
15 2025 July 31 2025 November 26 2025 March 28 2026 and May 30 2026 respectively as well as the periodic reports of the
Company: 1. for notes not paid at maturity the Company filed a lawsuit with the court requesting that China Energy Electric Fuel Co.Ltd. China Energy (Shanghai) Industrial Co. Ltd. Shanghai Nengping Industrial Co. Ltd. and Shenzhen Qianhai Baoying Commercial
Factoring Co. Ltd. pay the notes and the corresponding interest to the Company; 2. Due to the unpaid notes due the Company filed a
lawsuit with the court requesting that CEFC Shanghai International Group Limited and Tianjin International Trade Petrochemical Co. Ltd.be ordered to pay the notes and corresponding interests to the Company; 3. Due to the outstanding notes matured the Company filed a
lawsuit with the court requesting that CEFC Shanghai International Group Limited Qingdao Bonded Zhongshe International Trade Co.Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd. be ordered to pay the notes and corresponding interests to the
Company; 4. Since the bills were not paid upon maturity Konka Electronic Material Technology (Shenzhen) Co. Ltd. (formerly known as
Konka Commercial Factoring (Shenzhen) Co. Ltd.) filed a lawsuit with the court requesting an order for Tahoe Group Co. Ltd. Fuzhou
Taijia Industrial Co. Ltd. and Xiamen Lianchuang Microelectronics Co. Ltd. to pay Konka Factoring the amount of the bills and the
corresponding interest; 5. Since the notes were not repaid when due the Company filed a lawsuit with the court requesting that Hefei
Huajun Trading Co. Ltd. and Wuhan Jialian Agricultural Science and Technology Development Co. Ltd. be ordered to pay the notes and
corresponding interests to the Company; 6. Due to disputes over logistics contracts the Company's subsidiary Anhui Konka Electronics
Co. Ltd. sued the freight forwarding companies Shanghai Likai Logistics Co. Ltd. Shenzhen Branch and Shanghai Likai Logistics Ltd.demanding them to bear the responsibility for compensation for losses; 7. Due to a contract dispute the Company's subsidiary Shenzhen
Nianhua Enterprise Management Co. Ltd. filed an arbitration application requesting the Respondent to pay the corresponding annual
profit compensation and fund occupation fee to Fang Xianglong and Jiang Yan; 8. Due to a dispute over the payment for goods the
Company's subsidiary Hong Kong Konka Co. Ltd. filed an arbitration application with the Shenzhen Court of International Arbitration
requiring the respondent MAKENA ELECTRONIC (HONG KONG) COMPANY LIMITED to pay the payment for goods and liquidated
damages; 9. Due to a dispute over the purchase and sales contract of international goods the Company's subsidiary Anhui Konka
Electronics Co. Ltd. sued MAKENA ELECTRONIC (HONG KONG) COMPANY LIMITED requesting that the respondent be ordered to
pay the applicant for the goods and the interest on overdue payment; 10. Due to a dispute over repurchase the Company sued Luo
Zaotong Luo Jingxia Luo Zongyin Luo Zongwu and Shenzhen Yaode Technology Co. Ltd. requiring an order to pay the share
repurchase and interests. 11. Due to contract dispute the Company filed a lawsuit with the Intermediate People's Court of Zhengzhou
requiring Henan Radio and Television Network Co. Ltd. to take delivery of the goods according to the contract and pay the payment for
goods interest and liquidated damages; 12. Due to contract dispute Shenzhen Konka Unifortune Technology Co. Ltd. a subsidiary of
the Company sued Shenzhen Yaode Technology Co. Ltd. Dongsheng Xinluo Technology (Shenzhen) Co. Ltd. Shenzhen Hongyao
Dingsheng Investment Management Co. Ltd. Shenzhen Xiangrui Yingtong Investment Management LP Luo Jingxia Luo Zongwu Luo
Zongyin Luo Zaotong and Luo Saiyin requesting payment for goods and liquidated damages; 13. Due to trademark infringement and
unfair competition the Company sued Fu'an Xinshang Electronics Co. Ltd. Fujian Zhaoguan Industry and Trade Co. Ltd. Jinhua Konka
Medical Equipment Factory and Wang Jun requesting an order to stop the infringement and compensate for the loss; 14. Due to a
dispute over the loan contract the Company sued Yantai Kangyue Investment Co. Ltd. requesting that the defendant be ordered to
repay the loan and interest; 15. Due to the equity repurchase dispute Shenzhen Nianhua Enterprise Management Co. Ltd. a subsidiary
of the Company sued Fang Xiang Long and Jiang Yan requesting to repurchase the equity and pay the repurchase price; 16. Due to a
dispute over equity transfer contract the Company sued Langrui Haoteng Technology Development Co. Ltd. Beijing Beida Jade Bird
Safety System Engineering Technology Co. Ltd. and Beijing Jingrui Haoteng Technology Development Co. Ltd. for payment of the
equity transfer balance; 17. The Company sued Zhongfu Tiangong Construction Group Co. Ltd. He Junsheng China Nuclear Weiye
Construction Investment Co. Ltd. Zhongfu Jianye Holdings Limited and Zhonghong Jianye (Beijing) Technology Co. Ltd. over a right of
recourse dispute demanding the repayment of the principal and overdue interest; 18. Due to purchase and sales contract dispute
Sichuan Konka Intelligent Terminal Technology Co. Ltd. a subsidiary of the Company sued Shenzhen Junxing Communication
36Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Technology Co. Ltd. Shenzhen Hongxing Fengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd.Liuyang Huaichuan Heyuan Villa Co. Ltd. Zeng Jiankai and Zhong Yuhua demanding the payment of goods and liquidated damages;
19. Due to contract disputes Konka Telecommunications Technology Co. Ltd. a subsidiary of the Company sued Hong Kong Join Star
Electronics International Limited Zeng Jiankai and Zhong Yuhua requesting payment of goods and liquidated damages.IX. Punishments and Rectifications
□ Applicable √ Not applicable
None.X. Credit Quality of the Company and its Controlling Shareholder and De Facto
Controller
□ Applicable √ Not applicable
XI. Major Related-Party Transactions
1. Related-Party transactions on daily operation
√ Applicable □ Not Applicable
Amou As % Obtai
Relati Typeof Content of nt of
of Approv nable
total ed Over marke
Relate onship relate related- Pricin Tran relatedwith g sacti -party value transa the
Metho Discl
d d of
t price osur Disclo
party the
d- party of all ction approv for sure
Comp party transactio
princi on transa
ple price ction same- line ed line
settle e
transa ns type (RMB’ or not ment
same- index
any type
date
ctions (RMB’0000) transa 0000) transactions ctions
Sales of
TVs
smart
terminals
OCT The Sales
and other
Group same of
products Mark April
and its de goods
and Mark Not
facto and collection
et et 1332 0.35 1500.pricin .71 % 00 No Cash applic
29
202
subsid of smart price able 6
iaries control servic gler es TVterminal
installatio
n fees Cninfo
and other :
fees http://
The Purch Property www.cOCT
Group same asing managem Mark April
ninfo.c
and its de servic ent et
Mark Not om.cn/
27070.932000.29
subsid facto es and utilities pricin
et .51 % 00 Yes Cash applic 202 new/in
control produ office g price able 6 dexiaries ler cts leases
Sales of
Pansh Selling TVs air
i The produ conditione
Runch same ctsand rs Mark Apriluang de washing et Mark Not132.1 0.03 7000.and facto servic machines pricin et 3 % 00 No Cash applic
29
202
relate control es torelate refrigerato g
price able 6
d ler rs PCBs
parties dparties smartterminals
37Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
and other
products
and
provision
of leasing
and other
services
Purch
Pansh ase of
i The servic Digital
Runch same es and and other
uang de produ products;
Mark Mark Not Aprilet 547.7 0.19 4000. 29
and facto cts Insurance property pricin
et 4 % 00 No Cash applic 202
relate control from g price able 6
d ler relate services
parties d etc.parties
China
Resou The
rces same Depos Mark April
Bank de it Deposit et
Mark Not
25.592.47200.0
facto interes interest pricin et % 0 No Cash applic
29
202
of
Guang control t g
price able 6
dong ler
China
Resou The
rces same Mark April
Bank de
Loan Mark Not
facto interes
Loan et 2060 11.4 6500.interest pricin et .75 9% 00 No Cash applic
29
of 202
Guang control
t g price able 6
dong ler
Total -- -- 6806.43 --
2120
0.00----------
Large-amount sales return in detail Not applicable
Given the actual situation in the The Company has disclosed the Announcement on Estimated Recurring
Reporting Period (if any) where an Related-party Transactions for 2026 on April 29 2026 in Securities Times and
estimate had been made for the China Securities Journal and on Cninfo (http://www.cninfo.com.cn). In the
total value of continuing related- Reporting Period the basis for pricing transaction price transaction amount and
party transactions by type to occur settlement methods of raw materials purchased by the Company were basically
in the Reporting Period in accordance with the forecast. The total amount incurred was RMB 68.0643million.Reason for any significant
difference between the transaction
price and the market reference price Not applicable
(if applicable)
2. Related-Party transactions regarding purchase or sales of assets or equity
interests
□ Applicable √ Not applicable
During the reporting period the Company had no related party transactions arising from
the acquisition or sale of assets or equity.
3. Related-party transactions regarding joint investments in third parties
□ Applicable √ Not applicable
38Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
No such cases in the Reporting Period.
4. Credits and liabilities with related parties
√ Applicable □ Not Applicable
Whether there were any credits and liabilities with related parties for non-operating
purposes
√ Yes □ No
Liabilities payable to related parties
Increase in Interest in
Relationshi Opening the current Repayment the current ClosingRelated p with the Reason for balance period in the current Interes balanceparty Company formation (RMB'0000) (RMB’0000 period t rate
period
(RMB'000 (RMB'000
) (RMB'0000) 0) 0)
The
Panshi Controlling Company
Runchuang shareholde applied for
217000.000217000.003.00%413.250.00
r a loan from
it.Effects of liabilities with
related parties on the
Company’s operating The Company's application for loans from related parties met the needs of existing business
results and financial development and reduced the financing cost.conditions
5. Transactions with related finance companies
□ Applicable √ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved
in any other finance business with any related finance company or any other related parties.
6. Transactions with related parties by finance companies controlled by the
Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make any deposits receive loans
or credit from and was not involved in any other finance business with any related parties.
7. Other major related-party transactions
√ Applicable □ Not Applicable
Capital reduction and related-party transactions of the Company in Wuzhen Jiayu Fund:
On January 12 2026 the 7th meeting of the 11th Board of Directors of the Company
reviewed and approved the Proposal on Capital Reduction in Wuzhen Jiayu Fund. Due to
the end of the investment period of Wuzhen Jiayu Fund upon consultation among the
partners it is proposed to implement a proportional capital reduction for the remaining
uninvested funds reducing the total subscribed capital contribution of Wuzhen Jiayu Fund
from RMB 500 million to RMB 325 million. Among them the subscribed capital contribution
of Konka Investment Holding to Wuzhen Jiayu Fund will be reduced from RMB 200 million
39Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
to RMB 130 million with its subscription ratio of 40% in Wuzhen Jiayu Fund remaining
unchanged. This capital reduction will not affect the duration investment scope and other
core terms of Wuzhen Jiayu Fund. Upon completion of this capital reduction the capital
contribution ratios of partners in Wuzhen Jiayu Fund remain unchanged. This related-party
transaction does not constitute a major asset restructuring as stipulated in the
Administrative Measures for Material Asset Restructuring of Listed Companies does not
constitute restructuring and listing and does not require approval from relevant authorities.The special meeting of independent directors reviewed and approved this proposal with 3
affirmative votes 0 dissenting votes and 0 abstentions and issued review opinions. This
capital reduction is conducive to improving the fund utilization efficiency of the Company
meets the Company's operational and developmental needs will not lead to any change in
the scope of the Company's consolidated financial statements will not affect the
Company's current profit and loss and does not harm the interests of the Company and its
shareholders.Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Date of disclosure Website of disclosure
Announcement on Capital Reduction in
Wuzhen Jiayu Fund and Related-party January 13 2026 Cninfo (http://www.cninfo.com.cn)
Transactions
XII. Major Contracts and Execution thereof
1. Entrustment contracting and leases
(1) Entrustment
□ Applicable √ Not applicable
None.
(2) Contracting
□ Applicable √ Not applicable
None.
(3) Leases
√ Applicable □ Not Applicable
Statement on leases
No significant leases in the Reporting Period.During the Reporting Period the receivable rent of Konka R&D Building and Konka
Guangming Technology Center from January to June was approximately RMB 42.4716
million (excluding income from property management fees).Project bringing about the Company's profit or loss as over 10% of total profit in the
Reporting Period
□ Applicable √ Not applicable
40Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
No lease project bringing about the Company's profit or loss as over 10% of total profit in
the Reporting Period
2. Major guarantee
√ Applicable □ Not Applicable
Unit: RMB'0000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure
date of the
Actual Counter Guarantee
announce Line of Actual occurrence Type of Collateral Term of Fulfilled or
Obligor guarantee guarantee for a related
ment on guarantee date guarantee (if any) guarantee not
amount (if any) party or not
guarantee
line
Joint
May 22 2023 1499 liability None No Four years No No
guarantee
Econ April 28 Joint
Technology 2022 50000 October 24 2024 4388 liability None No Two years No Noguarantee
Joint
January 14 2025 1499 liability None No One year No No
guarantee and a half
Equity
March 10 2026 1249 No One year No No
pledge
Equity
March 10 2026 999 No One year No No
pledge
Equity
March 16 2026 1249 No One year No No
pledge
24.9829
Equity
April 27 2026 1249 % equity No One year No No
pledge
of Econ
Econ January Equity
25000 April 29 2026 750 Technolo No One year No No
Technology 13 2026 pledge
gy held
Equity
April 7 2026 500 by the No One year No No
pledge
Company
Equity
April 3 2026 2498 No One year No No
pledge
Equity
April 8 2026 1249 No One year No No
pledge
Equity
April 7 2026 1249 No One year No No
pledge
Jiangxi Xinxin
Jian'an Joint
Engineering 10000 December 12 2016 10000 liability None No No No
Co. Ltd. guarantee
Jiangxi
Zhongyi Joint
Decoration 10000 December 12 2016 10000 liability None No No No
Materials Co. guarantee
Ltd.Jiangxi
Shanshi Joint
Technology 10000 December 12 2016 10000 liability None No No No
Development guarantee
Co. Ltd.Total approved line for external guarantees in Total actual amount of external
2500010992
the Reporting Period (A1) guarantees in the Reporting Period (A2)
Total approved line for external guarantees at Total balance of external guarantees by
13097048378
the end of the Reporting Period (A3) the end of the Reporting Period (A4)
Guarantees provided by the Company to its subsidiaries
Disclosure Actual Guarantee
Line of Actual occurrence Type of Collat Counter Term of Fulfilled or
Obligor date of the guarantee for a related
guarantee date guarantee eral guarantee guarantee not
announce amount party or not
41Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
ment on
guarantee
line
Anhui Konka
Tongchuang
Electrical February Joint liability One year
Appliances 25 2023
4000 April 21 2025 4000 guarantee None No and a half No No
Co. Ltd.Dongguan March 24
Konka 2021 and
Electronics February 80000 June 23 2021 80000
Joint liability
guarantee None No Ten years No No
Co. Ltd. 25 2023
Ningbo
Kanghanrui May 9 2025 6000
Joint liability
guarantee None None
One year
and a half No No
Electric March 22 12000
Appliances 2025 July 13 2025 6000 Joint liabilityguarantee None None One year No NoCo. Ltd.August 10 2021 10216 Joint liability None Otherguarantee shareholde Ten years No No
October 29 2021 7000 Joint liability r of Anhuiguarantee None Konka 5 years No No
Anhui Konka October 24 2022 7000
Joint liability provided a
April 28 guarantee
None counter Four years No No
Electronics 2022 29216 guaranteeCo. Ltd. for the
June 25 2023 5000 Joint liability
Company
guarantee None for 22% of 5 years No Nothe
guarantee
line.Konka
ChipCloud
Semiconductor March 24 12100 November 26 2024 12100 Joint liabilityTechnology 2021 guarantee None None Three years No No
(Yancheng)
Co. Ltd.Chongqing
Konka
Technology March 24 55600 December 13 2022 38000 Joint liability None None 15 years No No
Development 2021 guarantee
Co. Ltd.Suining Konka April 28
Hongye 2022 and
Electronics February 19010 January 24 2024 19010
Joint liability
guarantee None None 14 years No No
Co. Ltd. 25 2023
Xi'an
Kanghong
Technology February Joint liability
Industry 25 2023 30000 May 26 2023 30000 guarantee None None Ten years No No
Development
Co. Ltd.Total approved line for the guarantees to Total actual amount of the guarantees to
00
subsidiaries in the Reporting Period (B1) subsidiaries in the Reporting Period (B2)
Total approved line for the guarantees to
Total balance of the guarantees to subsidiaries
subsidiaries at the end of the Reporting Period 315146 224326
by the end of the Reporting Period (B4)
(B3)
Guarantees provided between subsidiaries
Disclosure
date of the Collat
Actual Counter Guarantee
announce Line of Actual occurrence Type of eral Term of Fulfilled or
Obligor guarantee guarantee for a related
ment on guarantee date guarantee (if guarantee not
amount (if any) party or not
guarantee any)
line
None
Total approved line for the guarantees to Total actual amount of the guarantees to subsidiaries
00
subsidiaries in the Reporting Period (C1) in the Reporting Period (C2)
Total approved line for the guarantees to
Total balance of the guarantees to subsidiaries by
subsidiaries at the end of the Reporting Period 0 0
the end of the Reporting Period (C4)
(C3)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Total actual guarantee amount in the Reporting
2500010992
Period (A1+B1+C1) Period (A2+B2+C2)
42Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Total approved guarantee line at the end of the Total guarantee balance by the end of the Reporting
446116272704
Reporting Period (A3+B3+C3) Period (A4+B4+C4)
Total guarantee balance (A4+B4+C4) as % of the Company’s net
Not applicable
assets
Including:
Balance of guarantees provided for shareholders de facto
0
controller and their related parties (D)
Balance of debt guarantees provided directly or indirectly for
163315.95
obligors with an over 70% debt/asset ratio (E)
Amount by which the total guarantee amount exceeds 50% of the
Not applicable
Company’s net assets (F)
Total of the three guarantee amounts above (D+E+F) 163315.95
Explanation of the situation in which the guarantee liability occurs
or there is evidence that it may bear joint and several repayment
None
liability during the reporting period in respect of unexpired
guarantee contracts (if any)
Explanation on the provision of external guarantees in breach of
None
the prescribed procedures (if any)
Compound guarantees:
None
3. Entrusted Wealth Management
□ Applicable √ Not applicable
4. Other major contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIII. Reception of Researches Communications Interviews and other Activities
during the Reporting Period
√ Applicable □ Not Applicable
Main points of
Reception Place of Method of Type of Index of basic
time reception reception object of Object of reception
discussion and
reception information
information of
provided researches
Conferenc For details
e Room of Online Investors participating in thecommunic 2025 Online Performance please refer to
April 30 Office ation on Briefing of Konka Group Co. Ltd. the Investor Cninfo
2026 Building ofKonka the
Individual through the irm.cninfo.com.cn of Relations (http://www.cni
R&D network the Shenzhen Stock Exchange
Activity Record nfo.com.cn)
platform (http://irm.cninfo.com.cn) Form (No.Building 2026-01)
XIV. Other Significant Events
√ Applicable □ Not Applicable
(I) On April 29 2026 the Company disclosed the 2025 Annual Report which showed that
its audited net assets attributable to shareholders of the parent company at the end of
2025 were negative. Pursuant to Item (II) Paragraph 1 of Article 9.3.1 of the Rules
Governing the Listing of Stocks on the Shenzhen Stock Exchange the Company's shares
43Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
will be subject to a delisting risk warning. In addition because the lower of the Company's
audited net profits before and after deducting non-recurring profit and loss for the last three
accounting years was negative and ShineWing Certified Public Accountants LLP issued
an unqualified audit report with a material uncertainty paragraph concerning the
Company's ability to continue as a going concern on the Company's 2025 annual financial
statements pursuant to Paragraph (VII) of Article 9.8.1 of the Rules Governing the Listing
of Stocks on the Shenzhen Stock Exchange the Company's shares will be subject to other
risk warnings. The Company's shares will be subject to a delisting risk warning and other
risk warnings from the market opening on April 30 2026. The stock abbreviations will be
changed accordingly: "Shenzhen Konka A" will be changed to "ST Konka A" and
"Shenzhen Konka B" will be changed to "ST Konka B"; the stock codes will remain
unchanged: "000016" and "200016". After the implementation of the risk warnings the
daily price fluctuation limit for the trading of the Company's shares will be adjusted to 5%.According to the Trading Rules revised and issued by the Shanghai Shenzhen and Beijing
Stock Exchanges on April 24 2026 the daily price fluctuation limit for the trading of the
Company's shares will be adjusted from 5% to 10% from July 6 2026.(II) Initiation and establishment of funds: the total scale of the Oriental-Konka Industry M&A
Fund was RMB 1001 million. Shenzhen Konka Investment Holding Co. Ltd. contributed
RMB 500 million accounting for 49.95% of the total units. By the date of this report
Shenzhen Konka Investment Holding Co. Ltd. has contributed RMB 487.34 million. The
fund invested in Jiangxi Yahua Electronic Materials Co. Ltd. Potron Technology Co. Ltd.etc.The total amount of the Kunshan-CITIC-Konka Emerging Industry Development Investment
Fund was RMB1006 million. Shenzhen Konka Investment Holding Co. Ltd. contributed
RMB500 million accounting for 49.70% of the total. By the date of report issuance
Shenzhen Konka Investment Holding Co. Ltd. has contributed RMB195.21 million and
such fund was invested in UNIONTECH Hercules Microsystems (HME) etc.The total amount of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was
RMB500 million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB200
million accounting for 40% of the total. By the date of report issuance Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB200000000 and such fund was
invested in Feidi Technology (Shenzhen) Co. Ltd. Allystar Technology (Shenzhen) Co.Ltd. etc.The total amount of Yancheng Kangyan Industry Investment Fund was RMB3000 million.Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity
Investment Management Co. Ltd. contributed RMB 1201.5 million accounting for 40.05%
44Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
of the total units. By the date of report issuance Shenzhen Konka Investment Holding Co.Ltd. and Shenzhen Konka Capital Equity Investment Management Co. Ltd. have
contributed RMB 217.37 million. The fund invested in Chongqing ypfun Technology Co.Ltd. etc.The total amount of Yibin Kanghui Electronic Information Industry Equity Investment Fund
was RMB 1002 million. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen
Konka Capital Equity Investment Management Co. Ltd. contributed RMB401 million
accounting for 40.02% of the total. By the date of report issuance Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB 107.52 million. The fund invested in
Chongqing ypfun Technology Co. Ltd. etc.The total amount of Chongqing Kangxin Equity Investment Fund was RMB 2 billion.Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity
Investment Management Co. Ltd. contributed RMB 1 billion accounting for 50% of the
total. By the date of report issuance Shenzhen Konka Investment Holding Co. Ltd. and
Shenzhen Konka Capital Equity Investment Management Co. Ltd. have contributed RMB
152 million. The fund invested in Shanghai VEIGLO Information System Co. Ltd. Jiangxi
Taide Wisdom Technology Co. Ltd. etc.(III) Disclosure index of significant information
No. Date Title Page
2026-01 January 13 2026 Announcement on Change of Vice
Securities Times B061
President China SecuritiesJournal B046
Announcement on Capital Reduction in Securities Times B061
2026-02 January 13 2026 Wuzhen Jiayu Fund and Related-party China Securities
Transactions Journal B046
Announcement on Extension of Financial Securities Times B061
2026-03 January 13 2026 Assistance and Provision of Equity Pledge China Securities
Guarantee for Econ Technology Co. Ltd. Journal B046
2026-04 January 13 2026 Announcement on Resolutions of the 7th
Securities Times B061
Meeting of the 11th Board of Directors China SecuritiesJournal B046
Notice on Convening the First Securities Times B061
2026-05 January 13 2026 Extraordinary General Meeting of China Securities
Shareholders in 2026 Journal B046
2026-06 January 15 2026 Announcement on the 2025 Annual
Securities Times B018
Results Forecast China SecuritiesJournal B005
Securities Times B029
2026-07 January 17 2026 Announcement on the Resignation of theCompany's Director and President China SecuritiesJournal B021
2026-08 January 17 2026 Announcement on Resolutions of the 8th
Securities Times B029
Meeting of the 11th Board of Directors China SecuritiesJournal B021
2026-09 January 29 2026 Announcement on Resolutions of the First Securities Times B049Extraordinary General Meeting of China Securities
45Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholders in 2026 Journal A15
Announcement on the Possible Securities Times B074
2026-10 January 31 2026 Implementation of a Delisting Risk China Securities
Warning on the Company's Stock Trading Journal B028
Securities Times B074
2026-11 January 31 2026 2025 Annual Results Forecast China Securities
Journal B028
Announcement on Abnormal Fluctuations Securities Times A0102026-12 February 5 2026 in Stock Trading China SecuritiesJournal B020
2026-13 February 11 Announcement on the Appointment of
Securities Times B037
2026 General Counsel China SecuritiesJournal B017
Securities Times B037
2026-14 February 11 Announcement on Resolutions of the 9th2026 Meeting of the 11th Board of Directors China SecuritiesJournal B017
Announcement on Overdue Shareholder Securities Times B018
2026-15 March 3 2026 Loans for Sichuan Hongxinchen Real China Securities
Estate Development Co. Ltd. Journal B013
2026-16 March 7 2026 Announcement on the Progress in the
Securities Times B016
Provision of Equity Pledge China SecuritiesJournal B008
2026-17 March 18 2026 Announcement on Resolutions of the 10th
Securities Times B036
Meeting of the 11th Board of Directors China SecuritiesJournal B004
Securities Times B036
2026-18 March 18 2026 Announcement on the Progress in theProvision of Equity Pledge China SecuritiesJournal B004
Announcement on Cumulative Litigations Securities Times B0222026-19 March 28 2026 and Arbitrations China SecuritiesJournal B006
Second Announcement on the Possible Securities Times B021
2026-20 April 2 2026 Implementation of a Delisting Risk China Securities
Warning on the Company's Stock Trading Journal B012
Announcement on Overdue Shareholder Securities Times B021
2026-21 April 2 2026 Loans for Yantai Kangyun Industry China Securities
Development Co. Ltd. Journal B012
Announcement on Overdue Shareholder Securities Times 052
2026-22 April 17 2026 Loans for Sichuan Chengrui Real Estate China Securities
Co. Ltd. Journal B010
Third Announcement on the Possible Securities Times B052
2026-23 April 17 2026 Implementation of a Delisting Risk China Securities
Warning on the Company's Stock Trading Journal B010
2026-24 April 22 2026 Announcement on the Delayed Disclosureof the 2025 Annual Report
Securities Times B299
2026-25 April 28 2026 Announcement on Holding 2025 OnlineResult Release China SecuritiesJournal B002
2026-26 April 29 2026 Announcement on Resolutions of the 11th
Securities Times B325
Meeting of the 11th Board of Directors China SecuritiesJournal B617
Securities Times B326
2026-27 April 29 2026 Notice on Convening the 2025 AnnualGeneral Meeting of Shareholders China SecuritiesJournal B617
Announcement on the Profit Distribution Securities Times B3252026-28 April 29 2026 Plan for 2025 China SecuritiesJournal B618
2026-29 April 29 2026 Announcement on Expected Routine Securities Times B325Related-party Transactions in 2026 China Securities
46Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Journal B617
Announcement on the Implementation of
Delisting Risk Warning and Other Risk Securities Times B326
2026-30 April 29 2026 Warnings on the Company's Shares and China Securities
the Suspension and Resumption of Journal B618
Trading
2026-31 April 29 2026 Announcement on the Progress in the
Securities Times B325
Provision of Equity Pledge China SecuritiesJournal B618
Supplementary Announcement on the Securities Times B326
2026-32 April 29 2026 Listing and Transfer of Partial Equity of China Securities
Chongqing ypfun Technology Co. Ltd. Journal B618
Announcement on the Company's Securities Times B326
2026-33 April 29 2026 Uncovered Losses Reaching One-Third of China Securities
the Total Paid-in Share Capital Journal B618
Announcement on Correction of Prior Securities Times B326
2026-34 April 29 2026 Accounting Errors and Retrospective China Securities
Adjustments Journal B618
Financial Statements and Notes after Securities Times B326
2026-35 April 29 2026 Correction of Prior Accounting Errors and China Securities
Retrospective Adjustments Journal B618
2026-36 April 29 2026 Announcement on Accrual of Asset
Securities Times B325
Impairment Reserves for 2025 China SecuritiesJournal B617
Securities Times B325
2026-37 April 29 2026 Summary of 2025 Annual Report China Securities
Journal B617
Securities Times B325
2026-38 April 29 2026 First Quarter Report 2026 China Securities
Journal B617
2026-39 May 7 2026 Announcement on Abnormal Fluctuations
Securities Times B045
in Stock Trading China SecuritiesJournal B033
2026-40 May 8 2026 Announcement on Abnormal Fluctuations
Securities Times B041
in Stock Trading China SecuritiesJournal B039
2026-41 May 14 2026 Announcement on Abnormal Fluctuations
Securities Times B070
in Stock Trading China SecuritiesJournal B042
Announcement on the Extension of the Securities Times B024
2026-42 May 20 2026 Duration of the Emerging Industry China Securities
Development Investment Fund Journal B020
Announcement on the Extension of the Securities Times B032
2026-43 May 20 2026 Duration of the Oriental-Konka Industry China Securities
M&A Fund Journal B020
Announcement on Resolutions of the Securities Times B075
2026-44 May 26 2026 2025 Annual General Meeting of China Securities
Shareholders Journal A08
2026-45 May 30 2026 Announcement on Cumulative Litigations
Securities Times B025
and Arbitrations China SecuritiesJournal B009
Securities Times B065
2026-46 June 23 2026 Announcement on Abnormal Fluctuationsin Stock Trading China SecuritiesJournal B012
XV. Significant Events of the Company's Subsidiaries
□ Applicable √ Not applicable
47Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section VI. Share Changes and Shareholders
I. Share Changes
1. Share changes
Unit: share
Before the Change Increase/decrease during the period(+ -) After the Change
Shar
es Shares
as as
New divid dividendQuantity Proportion Othe Subt Proportioissues end converte Quantityconv d from rs otal n
erted capital
from reserves
profit
I. Restricted
shares 0 0.00% 0 0.00%
II. Unrestricted
shares 2407945408 100.00% 2407945408 100.00%
1. RMB-
denominated 1596593800 66.31% 1596593800 66.31%
ordinary shares
2. Domestically
listed foreign 811351608 33.69% 811351608 33.69%
shares
III. Total shares 2407945408 100.00% 2407945408 100.00%
Reasons for the change
□ Applicable √ Not applicable
Approval of the change
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Progress on any share repurchases
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding
□ Applicable √ Not applicable
Effects of the share changes on the basic and diluted earnings per share equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the
prior year and the prior accounting period respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities
48Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
regulator to be disclosed
□ Applicable √ Not applicable
2. Changes in restricted shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Number of Shareholders and Shareholdings of the Company
Unit: share
Number of ordinary shareholders as at the end 96565 Number of preferred shareholders with resumedof the Reporting Period voting rights (if any) 0
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through
refinancing)
Shares in
pledge
Shareho Number of
marked or
shares held Increase/dec Restricte frozen
Name of shareholder Nature of lding rease in the Unrestrictedshareholder percent by the end of d sharesthe Reporting Reporting held shares held
Q
age Period Period
Share(s u
) a
Status nt
ity
Panshi Runchuang
(Shenzhen)
Information State-ownedlegal person 21.76% 524022432 0 0 524022432Management Co.Ltd.CITIC Securities
Brokerage (Hong Foreignlegal person 8.24% 198361110 0 0 198361110Kong) Co. Ltd.Guoyuan Securities
Brokerage (Hong Foreignlegal person 2.55% 61327243 0 0 61327243Kong) Co. Ltd.HOLY TIME GROUP Foreign
LIMITED legal person 2.34% 56289100 0 0 56289100
Domestic
Li Tao natural 1.32% 31830900 14830900 0 31830900
person
Foreign
NAM NGAI natural 0.79% 18984676 3684276 0 18984676
person
Domestic
Zhang Yuxiang natural 0.39% 9500000 9500000 0 9500000
person
Foreign
Xu Zhiwang natural 0.37% 8887629 0 0 8887629
person
Domestic
Qu Chen natural 0.29% 7044808 7044808 0 7044808
person
Wang Jingfeng Domesticnatural 0.25% 6000000 -21001800 0 6000000
49Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
person
Circumstances under which
strategic investors or general legal
persons become top 10 None
shareholders due to the placement
of new shares (if any)
Panshi Runchuang and Commotra Company Limited are both wholly-owned
subsidiaries of China Resources and parties acting in concert; Panshi
Runchuang holds 524022432 A-shares of Konka Group Co. Ltd. accounting
Related or acting-in-concert parties for 21.76% of the totaL and acts as the controlling shareholder of the company.among the shareholders above Commotra Company Limited holds 198361110 B-shares of Konka Group Co.Ltd. through CITIC Securities Brokerage (Hong Kong) Limited accounting for
8.24% of the total. It remains unknown whether other shareholders are related or
act in concert.Involvement of any shareholder
above in entrusting/being entrusted
with voting rights or waiving voting Not applicable
rights
Notes on the existence of
repurchase-specific accounts
among the top 10 shareholders (if None
any)
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and
shares locked by senior management)
Unrestricted shares Type
Name of shareholder held by the end of the
Reporting Period Type Quantity
Panshi Runchuang (Shenzhen) RMB-denominated ordinary
Information Management Co. Ltd. 524022432 stock 524022432
CITIC Securities Brokerage (Hong 198361110 Domestically listed foreignKong) Co. Ltd. stock 198361110
Guoyuan Securities Brokerage (Hong 61327243 Domestically listed foreignKong) Co. Ltd. stock 61327243
HOLY TIME GROUP LIMITED 56289100 Domestically listed foreignstock 56289100
Li Tao 31830900 RMB-denominated ordinarystock 31830900
NAM NGAI 18984676 Domestically listed foreignstock 18984676
Zhang Yuxiang 9500000 RMB-denominated ordinarystock 9500000
Xu Zhiwang 8887629 Domestically listed foreignstock 8887629
Qu Chen 7044808 Domestically listed foreignstock 7044808
Wang Jingfeng 6000000 RMB-denominated ordinarystock 6000000
Panshi Runchuang and Commotra Company Limited are both wholly-owned
Related or acting-in-concert parties subsidiaries of China Resources and parties acting in concert; Panshi
among top 10 shareholders of Runchuang holds 524022432 A-shares of Konka Group Co. Ltd. accounting
unrestricted shares as well as for 21.76% of the totaL and acts as the controlling shareholder of the
between top 10 shareholders of company. Commotra Company Limited holds 198361110 B-shares of Konka
unrestricted shares and top 10 Group Co. Ltd. through CITIC Securities Brokerage (Hong Kong) Limited
shareholders accounting for 8.24% of the total. It remains unknown whether other
shareholders are related or act in concert.
50Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
A-share shareholder Li Tao holds 31830900 shares through the Client Credit
Top 10 ordinary shareholders Trading Collateral Securities Account of Guotai Haitong Securities Co. Ltd. A-
involved in securities margin trading share shareholder Wang Jingfeng holds 6000000 shares through the Client
(if any) (see note 4) Credit Trading Collateral Securities Account of Guotai Haitong Securities Co.Ltd.Participation of shareholders holding more than 5% of the shares the top 10 shareholders
and the top 10 shareholders of unrestricted tradable shares in refinancing business and
lending shares
□ Applicable √ Not applicable
Changes to the top 10 shareholders and the top 10 shareholders of unrestricted tradable
shares compared with the previous period due to refinancing lending/repayment
□ Applicable √ Not applicable
Whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.□ Yes √ No
The company's top 10 common stock shareholders and top 10 unrestricted common stock
shareholders did not engage in any repurchase transactions during the reporting period.IV. Changes in Shareholdings of Directors and Senior Executives
□ Applicable √ Not applicable
There was no change in the shareholding of the Company's directors and senior
executives during the Reporting Period. Please refer to the 2025 Annual Report for details.V. Changes in Controlling Shareholders or De Facto Controllers
Change to the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
None.Change of the de facto controller during the Reporting Period
□ Applicable √ Not applicable
None.VI. Preference Shares
□ Applicable √ Not applicable
No Preference shares in the Reporting Period.
51Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section VII Bonds
√ Applicable □ Not Applicable
I. Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.II. Corporate Bonds
√ Applicable □ Not Applicable
1. Basic Information of the Corporate Bonds
Unit: RMB'0000
Way of Tradin
Name Abbr. Code Issue date Value date Due date Bond Interesbalance t rate redemptio gn venue
Privately placed Interests
corporate bonds paid Shenz
to professional in every
vestors in 2024 o 24 Konka 133783 March 18 March 18 March 18 year
hen
f Konka Group C 03 2024 2024 2027
40000 4.03% principals StockExcha
o. Ltd. (Tranche repaid in
II) (Variety II) full when
nge
expired
Privately placed Interests
corporate bonds paidevery Shenzto professional in
vestors in 2025 o 25 Konka 134294 June 23 June 23 June 23 year
hen
41000 3.50% Stock
f Konka Group C 01 2025 2025 2028 principals
o. Ltd. (Tranche repaid in
Excha
full when ngeI) (Variety I) expired
Privately placed Interests
corporate bonds paidevery Shenzto professional in
vestors in 2025 o 25 Konka 134334 July 4 July 4
hen
03 2025 2025 July 4 2028 79000 2.80%
year Stock
f Konka Group C principalsrepaid in Exchao. Ltd. (Tranche
II) (Variety I) full when
nge
expired
Appropriate arrangement of the "24 Konka 03" "25 Konka 01" and "25 Konka 03" were placed privately to no
investors (if any) more than 200 professional institutional investors who meet the investor suitability
requirements of the Shenzhen Stock Exchange.Applicable trading mechanism "24 Konka 03" "25 Konka 01" and "25 Konka 03": negotiate-and-deal click-and-
deal inquire-and-deal and bid-and-deal.Risk of delisting (if any) and
countermeasures No
Overdue and outstanding bond
□ Applicable √ Not applicable
52Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
2. Triggerinf and Execution of the Option Clause of the Issuers or Investors and the
Investor Protection Clause
√ Applicable ￡ Not Applicable
During the Reporting Period the Company's or investors' option clauses were triggered
and executed as follows:
"24 Konka 01" holds a term of 3 years with an issuer's option to adjust the coupon rate
and an investor's put option at the end of the second year. On December 12 2025 the
Company decided to adjust the coupon rate of "24 Konka 01" to 1.50% for the last year of
its duration. According to the data from the Shenzhen Office of China Securities Depository
and Clearing Co. Ltd. the number of valid put bonds declared for "24 Konka 01" during the
put registration period was 15000000.00 with 0 not put and the put amount was RMB
1500000000.00. As "24 Konka 01" was fully put back it was delisted from the Shenzhen
Stock Exchange after the interest from January 29 2025 to January 29 2026 and the put
principal of "24 Konka 01" were paid on January 29 2026."24 Konka 02" holds a term of 3 years with an issuer's option to adjust the coupon rate
and an investor's put option at the end of the second year. On January 22 2026 the
Company decided to adjust the coupon rate of "24 Konka 02" to 1.00% for the last year of
its duration. According to the data from the Shenzhen Office of China Securities Depository
and Clearing Co. Ltd. the number of valid put bonds declared for "24 Konka 02" during the
put registration period was 4000000.00 with 0 not put and the put amount was RMB
400000000.00. As "24 Konka 02" was fully put back it was delisted from the Shenzhen
Stock Exchange after the interest from March 18 2025 to March 17 2026 and the put
principal of "24 Konka 02" were paid on March 18 2026."25 Konka 01" and "25 Konka 03" all hold a term of 3 years with an issuer's option to
adjust the coupon rate and an investor's put option at the end of the second year. During
the Reporting Period the exercise period for the embedded option clauses of the bonds
was not reached without any option exercised.During the Reporting Period no investor protection clauses were triggered.
3. Adjustment of Credit Rating Results during the Reporting Period
√ Applicable □ Not Applicable
Through its tracking analysis and assessment of the credit profile of the Company and the
relevant bonds China Lianhe Credit Rating Co. Ltd. determined to downgrade the long-
term issuer credit rating of the Company to "A+" with a negative outlook; and affirmed the
credit ratings of "25 Konka 01" and "25 Konka 03" at "AAA" with a "stable" outlook. The
Company's previous long-term issuer credit rating was "AA" with a "stable" outlook; the
53Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
previous credit ratings of "25 Konka 01" and "25 Konka 03" were "AAA" with a "stable"
outlook.
4. Execution and Changes of Guarantee Repayment Plan and Other Repayment
Guarantee Measures as well as Influence on Equity of Bond Investors during the
Reporting Period
□ Applicable √ Not applicable
III. Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV. Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.V. Losses of Scope of Consolidated Financial Statements during the Reporting
Period Exceeding 10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI. Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company as at the End of the Reporting Period
Unit: RMB'0000
Change from the end of the
Item End of the Reporting Period End of the previous year previous year to the end of
the Reporting Period
Current ratio 0.61 0.62 -1.61%
Debt/asset ratio 133.01% 126.22% 6.79%
Quick ratio 0.49 0.53 -7.55%
The Reporting Period Same period last year Year-on-year change for theReporting Period
Net profit after deducting -20924.41 -102750.21 79.64%
non-recurring gains/losses
EBITDA/debt ratio 1.28% 1.56% -0.28%
Times interest earned -0.31 0.01 -3200.00%
Times interest earned of -1.53 -1.16 -31.90%
cash
EBITDA interest coverage 1.00 1.22 -18.03%
ratio
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
54Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Section VIII Financial Report
I. Independent Auditor’s Report
Whether the semi-annual report has been audited
□ Yes √ No
The semi-annual financial report of the Company was unaudited.II. Financial Statements
Unit of the currency for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by: Konka Group Co. Ltd. June 30 2026
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 2687943074.33 6313941885.05
Settlement reserve
Interbank loans granted
Trading financial assets 138775929.60 202027000.00
Derivative financial assets
Notes receivable 156921039.72 77316985.56
Accounts receivable 1036383168.85 1086929012.15
Receivables financing 95040616.25 155957556.43
advances to suppliers 40491336.94 96105739.60
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 947515719.09 942267792.91
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 1474853179.97 1662246630.58
Including: Data resources
Contract assets 1779920.48 1892306.30
Assets held for sale
Current portion of non-current assets
Other current assets 719531026.32 761567941.76
Total current assets 7299235011.55 11300252850.34
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
55Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Long-term receivables
Long-term equity investments 2423931783.68 2026038156.99
Other equity instrument investments 10213810.20 10213810.20
Other non-current financial assets 1041679477.77 1161781213.03
Investment properties 960362019.52 866051475.13
Fixed assets 4158003825.17 4405958959.37
Construction in progress 517665830.25 516337481.93
Productive biological assets
Oil and gas assets
Right-of-use assets 103619972.26 130076544.83
Intangible assets 756880492.41 772231958.52
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term deferred expenses 417125489.68 453962117.69
deferred tax assets 107731524.60 106993555.63
Other non-current assets 622331617.60 601006137.59
Total non-current assets 11119545843.14 11050651410.91
Total assets 18418780854.69 22350904261.25
Current liabilities:
Short-term borrowings 2472464288.88 4575915552.66
Borrowings from the central bank
Interbank loans obtained
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 739788094.34 943817767.91
Accounts payable 1800540624.79 1977736371.29
Advances from customers 3027128.01 3426361.65
Contract liabilities 168122219.32 256506499.39
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 237633221.18 223175513.10
Taxes payable 48221985.90 71276255.42
Other payables 4345738069.13 6565100788.16
Including: Interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities held for sale
56Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Non-current liabilities maturing within one year 2094203324.48 3650840615.21
Other current liabilities 39035790.28 46377272.29
Total current liabilities 11948774746.31 18314172997.08
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 10124730184.53 6537926737.54
Bonds payable 788721094.30 1596674876.37
Including: Preferred shares
Perpetual bonds
Lease liabilities 75622339.07 96858968.75
Long-term payables 1152239.17 2033227.02
Long-term employee benefits payable 4477769.97 4519491.87
Estimated liabilities 851290214.61 852722866.97
Deferred income 405756847.37 408175795.51
deferred tax liabilities 95997312.74 114475054.80
Other non-current liabilities 201898911.52 283739354.36
Total non-current liabilities 12549646913.28 9897126373.19
Total liabilities 24498421659.59 28211299370.27
Owners' equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments 5000000000.00 5000000000.00
Including: Preferred shares
Perpetual bonds 5000000000.00 5000000000.00
Capital reserves 406579870.80 406579870.80
Less: Treasury stock
Other comprehensive income 22268973.36 -1866392.91
Specific reserve 21613041.45 17197144.62
Surplus reserves 1244180364.24 1244180364.24
General risk reserves
Retained earnings -15329888380.30 -15157108084.70
Total equity attributable to owners of the parent company -6227300722.45 -6083071689.95
Minority equity 147659917.55 222676580.93
Total owners’ equity -6079640804.90 -5860395109.02
Total liabilities and owners' equity 18418780854.69 22350904261.25
Legal representative: Wu Jianjun Chief Finance Officer: Yu Huiliang Head of
Accounting Agency: Wang Lihu
2. Balance sheet of the parent company
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 730117099.49 4870422479.05
Trading financial assets 138775929.60 202027000.00
Derivative financial assets
Notes receivable 50031888.30
Accounts receivable 2644190616.66 3546031483.05
Receivables financing
57Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
advances to suppliers 4638856661.94 3312810262.72
Other receivables 6786028631.88 6564549497.34
Including: Interest receivable
Dividends receivable 390420640.53 394828312.64
Inventories 42950332.94 165333867.28
Including: Data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 271669438.70 287171986.89
Total current assets 15302620599.51 18948346576.33
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 7925699157.28 7947033374.38
Other equity instrument investments 10213810.20 10213810.20
Other non-current financial assets 202032067.00 202032067.00
Investment properties 573889747.03 586120252.57
Fixed assets 366046154.72 375367331.52
Construction in progress 9714015.01 13474434.20
Productive biological assets
Oil and gas assets
Right-of-use assets 285787.48 347027.65
Intangible assets 19793958.62 23160095.54
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term deferred expenses 16414046.28 20782020.29
deferred tax assets
Other non-current assets 1507362.30 1467871.30
Total non-current assets 9125596105.92 9179998284.65
Total assets 24428216705.43 28128344860.98
Current liabilities:
Short-term borrowings 1481999969.45 1519153294.44
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 1381306.52 25163192.12
Accounts payable 1627965735.26 3796563874.96
Advances from customers
Contract liabilities 3375152448.27 2699707593.73
58Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Employee benefits payable 36994007.22 37672994.15
Taxes payable 8185920.33 25675833.17
Other payables 5320571757.75 7700994198.52
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities maturing within one year 1910377191.90 3387594563.88
Other current liabilities 6339303.75 7497034.93
Total current liabilities 13768967640.45 19200022579.90
Non-current liabilities:
Long-term borrowings 9031540000.00 5535100000.19
Bonds payable 788721094.30 1596674876.37
Including: Preferred shares
Perpetual bonds
Lease liabilities 300661.51 367441.04
Long-term payables
Long-term employee benefits payable
Estimated liabilities 346428842.60 346428842.60
Deferred income 31572314.78 33164619.14
deferred tax liabilities 31376895.49 42603809.42
Other non-current liabilities 53070823.11 52346890.08
Total non-current liabilities 10283010631.79 7606686478.84
Total liabilities 24051978272.24 26806709058.74
Owners' equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments 5000000000.00 5000000000.00
Including: Preferred shares
Perpetual bonds 5000000000.00 5000000000.00
Capital reserves 214160914.80 214160914.80
Less: Treasury stock
Other comprehensive income -1360579.00 -1360579.00
Specific reserve
Surplus reserves 1260024039.76 1260024039.76
Retained earnings -8504531350.37 -7559133981.32
Total owners’ equity 376238433.19 1321635802.24
Total liabilities and owners' equity 24428216705.43 28128344860.98
3. Consolidated income statement
Unit: RMB
Item First half of 2026 First half of 2025
I. Total operating revenue 3851571370.34 5247507849.27
Including: Operating revenue 3851571370.34 5247507849.27
Interest revenue
Premiums earned
Service fee and commission income
II. Total operating costs 4629629377.57 6113653586.34
59Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Including: Cost of sales 3604823925.05 4982943214.69
Interest expense
Service fee and commission expense
Surrenders
Net claims paid
Net change in insurance reserves
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 49683161.07 52857828.76
Selling expense 208584200.47 305525414.66
Administrative expense 303383408.92 273646470.76
R&D expense 168365167.60 187951295.68
Finance costs 294789514.46 310729361.79
Including: Interest expense 312546386.07 350360105.59
Interest revenue 105092356.22 72105599.49
Add: Other income 19188325.77 40970737.77
Investment income ("-" for loss) 430062360.56 540347018.43
Including: Investment income from associates and joint ventures 428284698.54 -42498270.14
Income from the derecognition of financial assets at amortized -1192931.11 -2541005.90
cost
Exchange gains ("-" for loss)
Net gains on exposure hedges ("-" for loss)
Gains from changes in fair value ("-" for loss) 62041331.96 173409194.85
Credit impairment loss ("-" for loss) 26251836.14 -117092417.76
Asset impairment loss ("-" for loss) -34741399.30 -85403855.86
Gains from disposal of assets ("-" for loss) -105935.16 31513481.94
III. Operating profit ("-" for loss) -275361487.26 -282401577.70
Add: non-operating revenue 6832779.85 9302209.51
Less: Non-operating expenses 3897492.47 3650200.98
IV. Total profit ("-" for total loss) -272426199.88 -276749569.17
Less: Income tax expense -8544396.99 220369507.92
V. Net profit ("-" for net loss) -263881802.89 -497119077.09
(I) By operating continuity
1. Net profit from continuing operations ("-" for net loss) -263881802.89 -497119077.09
2. Net profit from discontinued operations ("-" for net loss)
(II) By ownership
1. Net profit attributable to shareholders of the parent company ("- -172780295.60 -383328019.43
" for net loss)
2. Minority interests ("-" for net loss) -91101507.29 -113791057.66
VI. Other comprehensive income (net of tax) 49690521.61 -3731546.01
Other comprehensive income attributable to owners of the parent 24135366.27 -3317264.68
company (net of tax)
(I) Other comprehensive income not reclassified to gains/losses
1. Remeasurement of defined benefit plans
2. Other comprehensive income not reclassified to gains/losses
under the equity method
3. Changes in fair value of investments in other equity instruments
60Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
4. Changes in fair value arising from changes in own credit risk
5. Others
(II) Other comprehensive income reclassified to gains/losses 24135366.27 -3317264.68
1. Other comprehensive income reclassified to gains/losses under 35170.29
the equity method
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4. Credit impairment allowance for investments in other debt
obligations
5. Reserve for cash flow hedges
6. Differences arising from the translation of foreign currency- 24135366.27 -3352434.97
denominated financial statements
7. Others
Other comprehensive income attributable to the minority 25555155.34 -414281.33
shareholders (net of tax)
VII. Total comprehensive income -214191281.28 -500850623.10
Total comprehensive income attributable to owners of the parent -148644929.33 -386645284.11
company
Total comprehensive income attributable to non-controlling -65546351.95 -114205338.99
interests
VIII. Earnings per share:
(I) Basic earnings per share -0.0718 -0.1592
(II) Diluted earnings per share -0.0718 -0.1592
Legal representative: Wu Jianjun Chief Finance Officer: Yu Huiliang Head of
Accounting Agency: Wang Lihu
4. Income Statement of the parent company
Unit: RMB
Item First half of 2026 First half of 2025
I. Operating revenue 815867619.82 568971528.57
Less: Cost of sales 784529846.90 543252254.22
Taxes and surcharges 7399143.62 8147414.25
Selling expense 21190100.86 40412184.01
Administrative expense 71903221.22 75195768.11
R&D expense 9974438.99 10354660.50
Finance costs 290324999.08 265906735.02
Including: Interest expense 265183656.17 346218969.22
Interest revenue 59960215.77 106403950.57
Add: Other income 2158043.46 6411326.39
Investment income ("-" for loss) -8949477.75 581639183.08
Including: Investment income from associates and joint ventures -5463564.17 -11151203.25
Income from the derecognition of financial assets at amortized -226103.98
cost (“-” for loss)
Net gains on exposure hedges ("-" for loss)
Gains from changes in fair value ("-" for loss) 52832385.60 177700537.82
Credit impairment loss ("-" for loss) -614177400.82 -2794258.52
Asset impairment loss ("-" for loss) -18588430.61 3124627.22
61Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Gains from disposal of assets ("-" for loss) 11624645.93
II. Operating profit ("-" for loss) -956179010.97 403408574.38
Add: non-operating revenue -105540.28 536714.33
Less: Non-operating expenses 339731.73 642354.53
III. Total profit ("-" for total loss) -956624282.98 403302934.18
Less: Income tax expense -11226913.93 210569242.38
IV. Net profit ("-" for net loss) -945397369.05 192733691.80
(I) Net profit from continuing operations ("-" for net loss) -945397369.05 192733691.80
(II) Net profit from discontinued operations ("-" for net loss)
V. Other comprehensive income (net of tax)
(I) Other comprehensive income not reclassified to gains/losses
1. Remeasurement of defined benefit plans
2. Other comprehensive income not reclassified to gains/losses
under the equity method
3. Changes in fair value of investments in other equity instruments
4. Changes in fair value arising from changes in own credit risk
5. Others
(II) Other comprehensive income reclassified to gains/losses
1. Other comprehensive income reclassified to gains/losses under
the equity method
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the reclassification
of financial assets
4. Credit impairment allowance for investments in other debt
obligations
5. Reserve for cash flow hedges
6. Differences arising from the translation of foreign currency-
denominated financial statements
7. Others
VI. Total comprehensive income -945397369.05 192733691.80
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Statement of Cash Flows
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from the sale of commodities and rendering of services 3113799133.37 4368084284.49
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 in proceeds received on original insurance contracts
Net proceeds from reinsurance
Net increase in deposits and investments of policy holders
Interest service fee 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 79993694.96 56567647.38
Cash generated from other operating activities 229303501.81 215519884.28
62Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Subtotal of cash generated from operating activities 3423096330.14 4640171816.15
Cash paid for commodities and services 2922027764.37 4056223786.07
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in interbank loans
granted
Payments in cash for claims on original insurance contracts
Net increase in interbank loans granted
Interest service fee and commissions paid
Policy dividends paid
Cash paid to and for employees 656326369.69 735398262.13
Taxes paid 81667301.31 172911436.91
Cash used in other operating activities 299229566.16 351261761.97
Subtotal of cash used in operating activities 3959251001.53 5315795247.08
Net cash generated from/used in operating activities -536154671.39 -675623430.93
II. Cash flows from investing activities:
Proceeds from disinvestment 260473243.54 210644253.53
Return on investment in cash 2772232.30 12662010.65
Net proceeds from the disposal of fixed assets intangible assets 2198243.90 73915123.88
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business 4221401.00
units
Cash generated from other investing activities 858150.68
Subtotal of cash generated from investing activities 265443719.74 302300939.74
Payments in cash for the acquisition of fixed assets intangible 79173324.38 230479770.06
assets and other long-lived assets
Cash paid for investments
Net increase in pledged loans granted
Net payments in cash for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 48483.53 21122140.00
Subtotal of cash used in investing activities 79221807.91 251601910.06
Net cash generated from/used in investing activities 186221911.83 50699029.68
III. Cash flows from financing activities:
Proceeds in cash from disinvestment 3000000.00
Including: Capital contributions by non-controlling interests to 3000000.00
subsidiaries
Borrowings raised in cash 5830707833.34 5540288536.51
Cash generated from other financing activities 1136592037.28 1386679814.26
Subtotal of cash generated from financing activities 6967299870.62 6929968350.77
Repayment of borrowings 6657582475.33 5026999842.01
Cash payments for distribution of dividends or profit and interest 285802000.23 268919859.68
Including: Dividends and profits paid to minority shareholders by 926283.41
subsidiaries
Cash used in other financing activities 2806431209.99 1296921506.67
Subtotal of cash used in financing activities 9749815685.55 6592841208.36
Net cash generated from/used in financing activities -2782515814.93 337127142.41
IV. Effect of foreign exchange rates changes on cash and cash -12730906.25 7018961.86
equivalents
V. Net increase in cash and cash equivalents -3145179480.74 -280778296.98
Add: Cash and cash equivalents beginning of the period 5020469510.26 2783177476.45
VI. Cash and cash equivalents end of the period 1875290029.52 2502399179.47
6. Statement of Cash Flows of the Parent Company
Unit: RMB
63Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Proceeds from the sale of commodities and rendering of services 3179734932.31 1982717488.59
Tax rebates 9894201.88 0.00
Cash generated from other operating activities 20051778.28 52168761.02
Subtotal of cash generated from operating activities 3209680912.47 2034886249.61
Cash paid for commodities and services 3558920511.97 2346004439.65
Cash paid to and for employees 61365101.86 70698995.67
Taxes paid 5798790.75 8574471.84
Cash used in other operating activities 131545018.08 199281847.85
Subtotal of cash used in operating activities 3757629422.66 2624559755.01
Net cash generated from/used in operating activities -547948510.19 -589673505.40
II. Cash flows from investing activities:
Proceeds from disinvestment 113015103.00 209745654.53
Return on investment in cash 2772232.30 11248820.28
Net proceeds from the disposal of fixed assets intangible assets 167286.40 27269795.73
and other long-lived assets
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 1088681021.48 939791023.76
Subtotal of cash generated from investing activities 1204635643.18 1188055294.30
Payments in cash for the acquisition of fixed assets intangible 390978.43 3253950.15
assets and other long-lived assets
Cash paid for investments 3334800.00
Net payments in cash for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 1848553286.99 767252140.00
Subtotal of cash used in investing activities 1852279065.42 770506090.15
Net cash generated from/used in investing activities -647643422.24 417549204.15
III. Cash flows from financing activities:
Proceeds in cash from disinvestment
Borrowings raised in cash 4979000000.00 4003609738.88
Cash generated from other financing activities 3566657077.42 4122175002.73
Subtotal of cash generated from financing activities 8545657077.42 8125784741.61
Repayment of borrowings 5081184583.33 3579806940.27
Cash payments for distribution of dividends or profit and interest 268099865.22 296315030.56
Cash used in other financing activities 5894094807.71 4068154539.15
Subtotal of cash used in financing activities 11243379256.26 7944276509.98
Net cash generated from/used in financing activities -2697722178.84 181508231.63
IV. Effect of foreign exchange rates changes on cash and cash -3563669.90 2283185.17
equivalents
V. Net increase in cash and cash equivalents -3896877781.17 11667115.55
Add: Cash and cash equivalents beginning of the period 4224451561.79 1581749278.38
VI. Cash and cash equivalents end of the period 327573780.62 1593416393.93
64Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
7. Consolidated Statements of Changes in Owners’ Equity
Current amount
Unit: RMB
First half of 2026
Equity attributable to owners of the parent company
Other equity
instruments
P
r
ef
e Less Gene
Item rr : Other ral Ot Total owners’
Share capital e Ot Capital reserves Trea comprehensive Specific reserve Surplus reserves risk Retained earnings her Subtotal Minority equity equity
d Perpetua
s l bonds
her sury income reser s
s stock ves
h
a
r
e
s
I. Balance as at the end of the 50000
previous year 2407945408.00 00000. 406579870.80 -1866392.91 17197144.62 1244180364.24
--6083071689.95222676580.93-5860395109.02
0015157108084.70
Add: Changes in accounting
policies
Correction of previous error
Others
II. Balance at the beginning of the 50000
year 2407945408.00 00000. 406579870.80 -1866392.91 17197144.62 1244180364.24
-
15157108084.70-6083071689.95222676580.93-5860395109.0200
III. Changes in the current period
("-" for decrease) 24135366.27 4415896.83 -172780295.60 -144229032.50 -75016663.38 -219245695.88
(I) Total comprehensive income 24135366.27 -172780295.60 -148644929.33 -65546351.95 -214191281.28
(II) Capital increased and reduced
by the owner -11000000.00 -11000000.00
1. Ordinary shares contributed by
owners -11000000.00 -11000000.00
2. Capital increased by holders of
other equity instruments
3. Amount of share-based
payments included in owners'
equity
4. Others
(III) Profit distribution
1. Appropriation to surplus
reserves
2. Appropriation to general risk
reserves
3. Distribution to owners (or
shareholders)
4. Others
(IV) Transfers within owners’
equity
65Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
1. Increase in capital (or share
capital) from capital reserves
2. Increase in capital (or share
capital) from surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
converted into retained earnings
6. Others
(V) Special reserves 4415896.83 4415896.83 1529688.57 5945585.40
1. Appropriated in the current
period 5215909.48 5215909.48 1850661.55 7066571.03
2. Used in the current period 800012.65 800012.65 320972.98 1120985.63
(VI) Others
IV. Balance at the end of the
current period 2407945408.00
50000
00000.406579870.8022268973.3621613041.451244180364.24
--
15329888380.30-6227300722.45147659917.55
-
6079640804.90
00
Amount of last year
Unit: RMB
First half of 2025
Equity attributable to owners of the parent company
Other equity
instruments
P
re
fe Pe
Item rr rpe Less: Other Gener O Total owners’
Share capital e tua Othe Capital reserves
Treas
ury comprehensive Specific reserve Surplus reserves
al risk th Minority equity
d l reserv
Retained earnings e Subtotal equity
s bo rs stock
income es rs
h nd
ar s
e
s
I. Balance as at the end of the
previous year 2407945408.00 512840575.73 -9040290.32 11249678.53 1244180364.24 -1797506898.08 2369668838.10 -135017154.31 2234651683.79
Add: Changes in accounting
policies
Correction of previous error -777201329.82 -777201329.82 -777201329.82
Others
II. Balance at the beginning of the
year 2407945408.00 512840575.73 -9040290.32 11249678.53 1244180364.24 -2574708227.90 1592467508.28 -135017154.31 1457450353.97
III. Changes in the current period
("-" for decrease) -124520949.66 -3317264.68 3262875.34 -383188678.18 -507764017.18 -109343235.34 -617107252.52
(I) Total comprehensive income -3317264.68 -383328019.43 -386645284.11 -114205338.99 -500850623.10
(II) Capital increased and
reduced by the owner -124520949.66 139341.25 -124381608.41 2798342.84 -121583265.57
1. Ordinary shares contributed by
owners 2987476.54 2987476.54
2. Capital increased by holders of
other equity instruments
3. Amount of share-based
payments included in owners'
66Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
equity
4. Others -124520949.66 139341.25 -124381608.41 -189133.70 -124570742.11
(III) Profit distribution 926283.41 926283.41
1. Appropriation to surplus
reserves
2. Appropriation to general risk
reserves
3. Distribution to owners (or
shareholders) 926283.41 926283.41
4. Others
(IV) Transfers within owners’
equity
1. Increase in capital (or share
capital) from capital reserves
2. Increase in capital (or share
capital) from surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
converted into retained earnings
6. Others
(V) Special reserves 3262875.34 3262875.34 1137477.40 4400352.74
1. Appropriated in the current
period 4266750.42 4266750.42 1637242.18 5903992.60
2. Used in the current period 1003875.08 1003875.08 499764.78 1503639.86
(VI) Others
IV. Balance at the end of the
current period 2407945408.00 388319626.07
-
12357555.0014512553.871244180364.24-2957896906.081084703491.10-244360389.65840343101.45
8. Statements of Changes in Owners’ Equity of the parent company
Current amount
Unit: RMB
First half of 2026
Other equity instruments
Item Prefe Less: Other
O
Share capital rred Oth Capital reserves Treasury comprehensive SpecificPerpetual bonds reserve Surplus reserves Retained earnings
th Total owners’ equity
share ers stock income e
s rs
I. Balance as at the end of the previous year 2407945408.00 5000000000.00 214160914.80 - -1360579.00 1260024039.76 -7559133981.32 1321635802.24
Add: Changes in accounting policies
Correction of previous error
Others
II. Balance at the beginning of the year 2407945408.00 5000000000.00 214160914.80 - -1360579.00 1260024039.76 -7559133981.32 1321635802.24
III. Changes in the current period ("-" for
decrease) - -945397369.05 -945397369.05
(I) Total comprehensive income -945397369.05 -945397369.05
(II) Capital increased and reduced by the
owner
1. Ordinary shares contributed by owners
2. Capital increased by holders of other equity
instruments
3. Amount of share-based payments included
in owners' equity
67Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
4. Others
(III) Profit distribution
1. Appropriation to surplus reserves
2. Appropriation to owners (or shareholders)
3. Others
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital) from
capital reserves
2. Increase in capital (or share capital) from
surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit schemes
transferred to retained earnings
5. Other comprehensive income converted into
retained earnings
6. Others
(V) Special reserves
1. Appropriated in the current period
2. Used in the current period
(VI) Others
IV. Balance at the end of the current period 2407945408.00 5000000000.00 214160914.80 -1360579.00 1260024039.76 -8504531350.37 376238433.19
Amount of last year
Unit: RMB
First half of 2025
Other equity instruments O
Item Less: OtherShare capital Preferred Perpetua Others Capital reserves Treasury comprehensive
Specific Surplus reserves Retained earnings th Total owners’ equity
shares l bonds stock income reserve ers
I. Balance as at the end of the previous year 2407945408.00 339889142.56 -1281096.83 1260024039.76 -1199867554.61 2806709938.88
Add: Changes in accounting policies
Correction of previous error -443004797.05 -443004797.05
Others
II. Balance at the beginning of the year 2407945408.00 339889142.56 -1281096.83 1260024039.76 -1642872351.66 2363705141.83
III. Changes in the current period ("-" for
decrease) -126029421.25 192749983.59 66720562.34
(I) Total comprehensive income 192733691.80 192733691.80
(II) Capital increased and reduced by the
owner -126029421.25 -126029421.25
1. Ordinary shares contributed by owners
2. Capital increased by holders of other
equity instruments
3. Amount of share-based payments
included in owners' equity
4. Others -126029421.25 -126029421.25
(III) Profit distribution 16291.79 16291.79
1. Appropriation to surplus reserves
2. Appropriation to owners (or shareholders)
3. Others 16291.79 16291.79
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital) from
capital reserves
2. Increase in capital (or share capital) from
surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit schemes
transferred to retained earnings
5. Other comprehensive income converted
68Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
into retained earnings
6. Others
(V) Special reserves
1. Appropriated in the current period
2. Used in the current period
(VI) Others
IV. Balance at the end of the current period 2407945408.00 213859721.31 -1281096.83 1260024039.76 -1450122368.07 2430425704.17
69Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
III. Company profile
1. Konka Group Co. Ltd. (hereinafter referred to as the “Company” or 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 August 29
1995 the Company was renamed to “Konka Group Co. Ltd.” (unified social credit
code: 914403006188155783) with its main business electronic industry. Now the
headquarters locates in No. 28 No. 12 Keji South Road 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 June 30 2026 the Company has issued a total of
2407945408.00 shares (denomination of RMB1 per share) with a registered capital
of RMB2407945408.00.
3. Nature of the Company's business and main operating activities
The Group was mainly engaged in consumer electronics and semiconductor
businesses conducting the production and sales of colour TVs white TVs
optoelectronic display storage and printed circuit Boards etc.
4. The financial statements were approved for issue by the Board of Directors of the
Company on August 27 2026.IV. Scope of the consolidated financial statements
The scope of the Group's consolidated financial statements covers 104 subsidiaries
such as Shenzhen Konka Electronics Technology Co. Ltd. Anhui Konka Electronics
Co. Ltd. and Dongguan Konka Electronics Co. Ltd.For details please refer to Note X "Changes in the Consolidation Scope" and Note XI
"Equity in Other Entities" herein.Checklist of Company Name and Abbreviations in this Report
No. Company name Abbreviation
70Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
No. Company name Abbreviation
1 Shenzhen Konka Electronics Technology Co. Ltd. Electronics Technology
2 Nantong Haimen Konka Smart Technology Co. Ltd. Haimen Konka
3 Chengdu Konka Electronics Co. Ltd. Chengdu KonkaElectronics
4 Nantong Konka Smart Technology Co. Ltd. Nantong Konka
5 Shenzhen Kangcheng Technology Innovation andDevelopment Co. Ltd. Shenzhen Kangcheng
6 Shenzhen Xiaojia Technology Co. Ltd. Xiaojia Technology
7 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun
8 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang KangshunRenewable
9 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
10 Chuzhou Konka Precision Intelligent ManufacturingTechnology Co. Ltd. Chuzhou Konka
11 Guangdong Xingda Hongye Electronics Co. Ltd. Xingda Hongye
12 Shenzhen Konka Circuit Co. Ltd. Konka Circuit
13 Suining Konka Flexible Electronic Technology Co. Konka FlexibleLtd. Electronics
14 Suining Konka Hongye Electronics Co. Ltd. Konka HongyeElectronics
15 Boluo Konka Precision Technology Co. Ltd. Boluo Precision
16 Anhui Konka Tongchuang Electrical Appliances Co.Ltd. Anhui Tongchuang
17 Jiangsu Konka Smart Electrical Appliances Co. Ltd. Jiangsu Konka Smart
18 Anhui Konka Electrical Appliance Technology Co.Ltd. Anhui Electrical Appliance
19 Henan Frestec Refrigeration Appliances Co. Ltd. Frestec Refrigeration
20 Henan Frestec Electrical Appliances Co. Ltd. Frestec ElectricalAppliances
21 Henan Frestec Household Appliances Co. Ltd. Frestec HouseholdAppliances
22 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home
23 Shenzhen Konka Investment Holding Co. Ltd. Konka Investment
24 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka TechnologyPark
25 Shenzhen Konka Capital Equity InvestmentManagement Co. Ltd. Konka Capital
26 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong
27 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial
28 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology
29 Konka Electronic Material Technology (Shenzhen) Konka ElectronicCo. Ltd. Materials
71Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
No. Company name Abbreviation
30 Beijing Konka Electronics Co. Ltd. Beijing Konka Electronics
31 Tianjin Konka Technology Co. Ltd. Tianjin Konka
32 Suining Konka Industrial Park Development Co. Ltd. Suining Konka IndustrialPark
33 Suining Konka Electronic Technological Innovation Suining ElectronicCo. Ltd. Technological Innovation
34 Shanghai Konka Industrial Co. Ltd. Shanghai Konka
35 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin
36 Shenzhen Konka Technology Industry Development Technology IndustryCo. Ltd. Development
37 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka
38 Yibin Konka Smart Technology Co. Ltd. Yibin Konka Intelligent
39 Shenzhen Konka Semiconductor Technology Co. Shenzhen KonkaLtd. Semiconductor
40 Chongqing Konka Technology Development Co.Ltd. Chongqing Konka
41 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory(Shenzhen)
42 Kowin Memory Technology (Hong Kong) Co. Kowin Memory (HongLimited Kong)
43 Konka ChipCloud Semiconductor Technology Konka ChipCloud(Yancheng) Co. Ltd. Semiconductor
44 Konka Cross-border (Hebei) Technology Konka Cross-borderDevelopment Co. Ltd. (Hebei)
45 Shenzhen Nianhua Enterprise Management Co.Ltd. Shenzhen Nianhua
46 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Central China
47 Shenzhen Konka Chuangzhi Electrical Appliances Shenzhen ChuangzhiCo. Ltd. Electrical Appliances
48 Suining Jiarun Property Co. Ltd. Suining Jiarun Property
49 Anhui Konka Electronics Co. Ltd. Anhui Konka
50 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade
51 Shenzhen Konka Telecommunications Technology TelecommunicationsCo. Ltd. Technology
52 Konka Mobility Co. Limited Konka Mobility
53 Dongguan Konka Electronics Co. Ltd. Dongguan Konka
54 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart
55 Chongqing Konka Optoelectronics Technology Co. Chongqing OptoelectronicLtd. Technology
56 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun
57 Yibin Kangrun Medical Waste Centralized TreatmentCo. Ltd. Yibin Kangrun Medical
58 Ningbo Kanghanrui Electric Appliances Co. Ltd. Ningbo KanghanruiElectric Appliances
72Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
No. Company name Abbreviation
59 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka
60 Jiangxi High-transparency Substrate Material Jiangxi High-transparencyTechnology Co. Ltd. Substrate
61 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystal
62 Shaanxi Konka Smart Home Appliance Co. Ltd. Shanxi Konka Intelligent
63 Shenzhen Konka Pengrun Technology & IndustryCo. Ltd. Pengrun Technology
64 Jiaxin Technology Co. Ltd. Jiaxin Technology
65 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune
66 Jiali International (Hong Kong) Limited Jiali International
67 Hebei Kangjiatong Technology Co. Ltd. Kangjiatong
68 Nanjing Konka Smart Electric Co. Ltd. Nanjing Konka Smart
69 Hainan Konka Technology Co. Ltd. Hainan KonkaTechnology
70 Konka Venture Development (Shenzhen) Co. Ltd. Konka Venture
71 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator
72 Yantai Konka Healthcare Enterprise Service Co.Ltd. Yantai Konka
73 Guiyang Konka Enterprise Service Co. Ltd. Konka Enterprise Service
74 Ji'an Konka Technology Industry Development Co.Ltd. Ji'an Konka
75 Konka (Europe) Co. Ltd. Konka Europe
76 Hong Kong Konka Co. Ltd. Hong Kong Konka
77 Hongdin International Trading Limited Hongdin Trading
78 Konka North America LLC Konka North America
79 Kanghao Technology Co. Ltd. Kanghao Technology
80 Hongdin Invest Development Limited Hongdin Investment
81 Zhongkang Storage Technology Co. Ltd. Chain Kingdom MemoryTechnologies
Chain Kingdom
82 Chain Kingdom Semiconductor (Shaoxing) Co. Ltd. Semiconductor
(Shaoxing)
83 Hongjet (Hong Kong) Company Limited Hongjet
84 Chongqing Xinyuan Semiconductor Co. Ltd. Chongqing XinyuanSemiconductor
85 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
86 Shenzhen Kanghong Dongsheng InvestmentPartnership (Limited Partnership) Kanghong Dongsheng
87 Guizhou Konka New Material Technology Co. Ltd. Guizhou Konka NewMaterial Technology
73Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
No. Company name Abbreviation
88 Konka Smart Home Appliance (Shanxi) Industry Shanxi Smart HomeDevelopment Co. Ltd. Appliance
89 Guizhou Kanggui Material Technology Co. Ltd. Guizhou Kanggui MaterialTechnology
90 Nantong Kanghai Technology Industry DevelopmentCo. Ltd. Nantong Kanghai
91 Chongqing Kangyiyun Business OperationManagement Co. Ltd. Chongqing Kangyiyun
92 Jiangxi Konka High-tech Park Operation and Jiangxi Konka High-techManagement Co. Ltd. Park
93 Shangrao Konka Electronic Technology Innovation
Shangrao Konka
Co. Ltd. Electronic TechnologyInnovation
94 Zhejiang Konka Electronics Co. Ltd. Zhejiang Konka Electronic
95 Zhejiang Konka Technology Industry Development Zhejiang KonkaCo. Ltd. Technology Industry
96 Xi'an Konka Intelligent Appliance Co. Ltd. Xi'an Konka Intelligent
97 Xi'an Konka Network Technology Co. Ltd. Xi'an Konka Network
98 Xi'an Kanghong Technology Industry Development Xi'an KanghongCo. Ltd. Technology Industry
99 Xi'an Konka Intelligent Technology Development Xi'an Konka IntelligentCo. Ltd. Technology
100 Songyang Konka Smart Industry Operation Songyang IndustryManagement Co. Ltd. Operation
101 Shenzhen Kangyan Technology Co. Ltd. Kangyan Technology
102 Songyang Konka Intelligent Technology Songyang KonkaDevelopment Co. Ltd. Intelligent
103 Konka North China (Tianjin) Technology Co. Ltd. Konka North China
104 Shenzhen Konka Digital Technology DevelopmentCo. Ltd. Digital Technology
V. Basis for preparation of financial statements
1. Basis for preparation
The Group's financial statements were prepared in accordance with the Accounting
Standards for Business Enterprises promulgated by the Ministry of Finance as well as
guidelines on accounting standards for business enterprises announcements on interpreting
the accounting standards for business enterprises and other related regulations (hereinafter
collectively referred to as the "Accounting Standards for Business Enterprises") as well as
the disclosure regulations of the General Provisions on Financial Reporting No. 15 for
Companies Publicly Issuing Securities (revised in 2023) by the China Securities Regulatory
Commission (hereinafter referred to as the "CSRC").
74Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
2. Going concern
The Group evaluated its ability to continue as a going concern for the 12 months from the
end of the Reporting Period and found no matters or circumstances that raised significant
doubts about its ability to continue as a going concern. Therefore the financial statements
have been presented on a going concern basis.VI. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates: The specific accounting
policies and accounting estimates formulated by the Group according to the actual
production and operation characteristics include provisions for bad debts of accounts
receivable provisions for inventory depreciation depreciation of fixed assets revenue
recognition and measurement etc.
1. Statement of compliance with the Accounting Standards for Business
Enterprises
The financial statements prepared by the Group are in compliance with the
Accounting Standards for Business Enterprises which factually accurately and
completely present the Company's and the Group's financial positions on June 30
2026 business results and cash flows and other relevant information for the half year
of 2026.
2. Fiscal period
The Group's fiscal period starts from January 1 to December 31 of the Gregorian
calendar.
75Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
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 Company uses RMB as the recording currency. Subsidiaries of the Group determine
their functional currency according to the main economic environment in which they
operate. When preparing the financial statements the Group converts them into RMB
according to the method described in VI. 10(2) Conversion of foreign currency financial
statements.
5. Determination methods and selection basis for materiality threshold
The Group prepares and discloses financial statements adhering to the principle of
materiality. The disclosures in the notes to the financial statements cover matters
involving judgments about materiality criteria the methods for determining materiality
thresholds and the bases for selecting these criteria:
Location of disclosure of Methodology for
Disclosures involving
this matter in the notes to Determining Materiality
materiality standard
the present financial Criteria and Basis for
judgments
statements Selection
Individual amount
Significant individually bad Note VIII.4. Accounts
exceeding
debt provisioned receivables receivable (2)
RMB50000000
Receivables with significant
amount of bad debt provision Note VIII.4. Accounts Individual amount
recovered or reversed during receivable (3) exceeding RMB10 million
the current period
Write-off of significant
Note VIII.4. Accounts Individual amount
receivables in the current
receivable (4) exceeding RMB10 million
period
Significant accounts payable Individual amount
Note VIII.26. Accounts payable
aged over 1 year exceeding RMB10 million
Significant receipts in
advance and contractual Note VIII.27; Note VIII.28; Note Individual amount
liabilities/projected VIII.29; Note VIII.39 exceeding RMB10 million
liabilities/other payables
76Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Location of disclosure of Methodology for
Disclosures involving
this matter in the notes to Determining Materiality
materiality standard
the present financial Criteria and Basis for
judgments
statements Selection
aged over 1 year
Increase or decrease in a
single asset during the
Significant construction in Note VIII.16. Construction in
current period or a
progress projects progress (2)
balance exceeding
RMB0.1 billion
6. Accounting treatments for business combinations under common control
and those not under common control
(1) Business combinations under common control
A business combination involving entities under common control is a business
combination in which all of the combining enterprises are ultimately controlled by the
same party or parties both before and after the combination and that control is not
transitory.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 book
value in the final controlling party on the combining date. The difference between the
book value of the net assets acquired and the book value of the consideration paid for
the combination (or the total par value of the shares issued) is used to adjust the
capital reserves; In case the capital reserves are insufficient to cover the difference
the retained earnings will be adjusted.
77Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(2) Business combinations not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by
the same party or parties both before and after the combination.As purchaser 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 difference of the combination
costs in excess of the fair value of the identifiable net assets acquired from the
acquiree shall be recognized as goodwill; If the combination costs are less than the
fair value of the identifiable net assets acquired from the acquiree in the combination
the fair values of the identifiable assets liabilities and contingent liabilities acquired
from the combination and the combination costs shall be reviewed first. After review if
the combination costs are still less than the fair value the difference shall be included
in the current non-operating revenue of the combination.
7. Criteria for determining control and preparation methods for consolidated
financial statements
The scope of consolidation for the consolidated financial statements of the Group is
based on control including the Company and all its subsidiaries (including enterprises
divisible parts of investees and structured entities controlled by the Company). The
Group assesses control based on whether it has power over the investee has
exposure or rights to variable returns from its involvement with the investee and has
the ability to use its power over the investee to affect the amount of the investor's
returns.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.The impact of internal transactions between the Company and its subsidiaries as well
as between subsidiaries and each other was offset in consolidation. 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 business combinations under the same control
78Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
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.Where equity interests in an investee under common control are acquired step by
step through multiple transactions ultimately resulting in a business combination the
accounting treatment applied in the consolidated financial statements shall be
additionally disclosed in the reporting period in which control is obtained. For example
where the equity of an investee under common control is acquired in stages through
multiple transactions ultimately resulting in a business combination when preparing
the consolidated financial statements adjustments are made as if the entity had
existed in its current state from the time the ultimate controlling party obtained control.When preparing comparative financial statements the relevant assets and liabilities of
the acquiree are consolidated into the Group's comparative consolidated financial
statements limited to a point in time not earlier than when both the Group and the
acquiree were under the control of the same ultimate controlling party. The net assets
increased as a result of the combination are used to adjust the relevant items under
owner's equity in the comparative financial statements. To avoid double-counting the
value of the acquiree's net assets for any long-term equity investment held by the
Group before the combination is achieved the related profit or loss other
comprehensive income and other changes in net assets recognized from the later of
the date the original equity was acquired and the date the Company and the acquiree
came under the control of the same ultimate controlling party up to the combination
date shall be offset against the opening retained earnings and current profit or loss of
the comparative reporting 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.Where the equity of an investee not under common control is acquired in stages
through multiple transactions ultimately resulting in a business combination the
accounting treatment in the consolidated financial statements shall be additionally
disclosed in the reporting period in which control is obtained. For a business
combination achieved in stages where equity interests in the acquiree are obtained
79Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
through multiple transactions and ultimately result in a business combination not
under common control the previously held equity interest shall be remeasured at its
fair value on the acquisition date. Any difference between the fair value and its
carrying amount shall be recognized in current investment income; With respect to the
previously held equity interest in the acquiree any amounts recognized in other
comprehensive income under the equity method as well as other changes in owners’
equity other than net profit or loss other comprehensive income and profit
distributions shall be reclassified to current investment income in the period of the
acquisition date. However this excludes other comprehensive income arising from
remeasurement of the net defined benefit liability or asset of the investee.When the Group disposes of a portion of its long-term equity investment in a
subsidiary without losing control the difference in the consolidated financial
statements between the proceeds from the disposal and the subsidiary's share of net
assets calculated continuously from the acquisition date or combination date
corresponding to the disposed long-term equity investment is adjusted against capital
premium or share premium. If the capital reserve is insufficient to absorb the
difference retained earnings are adjusted.If the Group loses control over an investee due to reasons such as the disposal of a
portion of its equity investment when preparing the consolidated financial statements
the remaining equity is remeasured at its fair value on the date of loss of control. The
difference between the total of the consideration received from the disposal of equity
and the fair value of the remaining equity minus the share of the original subsidiary's
net assets calculated continuously from the acquisition or combination date based on
the original shareholding percentage is recognized in investment income for the
period in which control is lost and goodwill is derecognized at the same time. Other
comprehensive income and other items related to the original equity investment in the
subsidiary are reclassified to investment income for the current period upon loss of
control.If the Group disposes of its equity investment in a subsidiary in stages through
multiple transactions until control is lost and if these transactions are part of a single
transaction package all transactions shall be accounted for as a single transaction of
disposing of a subsidiary and losing control; However the difference between the
disposal proceeds and the share of net assets of the subsidiary corresponding to the
investment disposed of for each disposal prior to the loss of control shall be
recognised as other comprehensive income in the consolidated financial statements
and shall be reclassified to investment income in the period in which control is lost.
8. Classification of joint venture arrangements and accounting treatments for
80Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
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.
81Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
9. Cash and cash equivalents
Cash in the Group's statement of cash flows refers to cash on hand and unrestricted deposits.For the purpose of the statement of cash flows cash equivalents refer to highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of change in value with a holding period of not more than 3 months.
10. Foreign currency transactions and translation of foreign currency financial statements
(1) Foreign currency transactions
Foreign currency transactions of the Group are initially recognized at the exchange rate at the
beginning of the month of the transaction date (usually referring to the middle rate of the foreign
exchange rate announced by the People's Bank of China on the day the same below)
converting the foreign currency amount into the functional currency amount. 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 gains/losses.
(2) Translation of foreign currency financial statements
When preparing the consolidated financial statements the Group translates the financial
statements of overseas operations into RMB in which: assets and liabilities in the foreign
currency balance sheet are translated at the spot exchange rate on the balance sheet date;
Owners' equity items except for "undistributed profits" are translated at the spot exchange rate
when the business occurs; The income and expense items in the income statement are
translated at the average exchange rate of the current period (the average exchange rate of the
month) on the date when the transactions occur. The conversion difference of foreign currency
statements 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.
11. Financial instruments
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.If the following conditions are met a financial asset (or a part of a financial asset or a part of a
group of similar financial assets) shall be derecognized that is the previously recognized
82Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
financial asset shall be transferred from the balance sheet: 1) the right to receive the cash flows
of the financial asset expires; 2) When the financial assets are transferred the Group has
transferred almost all the risks and rewards of ownership of the financial assets; 3) When a
financial asset is transferred the Group neither transfers nor retains substantially all the risks and
rewards of ownership of the financial asset nor retains control over the financial asset.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
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 book value and payment consideration into the current profit or loss.All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.
(2) Classification and measurement method of financial assets
At initial recognition the Group's financial assets are classified into financial assets measured at
amortized cost financial assets measured at fair value through other comprehensive income and
financial assets measured at fair value through current profit or loss according to the Group's
business model for managing financial assets and the contractual cash flow characteristics of
financial assets. All affected related financial assets will be reclassified if and only when the
Group changes its business model for managing financial assets.The Group classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: * The business mode of the Group to manage the financial
assets targets at collecting the contractual cash flow. * The 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 are initially measured at
fair value and relevant transaction cost is included into the initially recognized amount;
subsequent measurement is carried out 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 classifies the financial assets meeting the following conditions simultaneously as
83Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
financial assets measured at fair value through other comprehensive income: * the business
model for managing this financial asset aims at both collecting contractual cash flows and selling
the financial asset. * The 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 any
other gains or losses arising from such financial assets except for credit impairment losses or
gains exchange profit or loss and interest on the financial asset calculated using the effective
interest rate method is included in other comprehensive income; When financial assets are
derecognized the accumulated gains or losses previously included in other comprehensive
income shall be transferred from other comprehensive income and included in 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 by the actual interest rate except for the following circumstances: * 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. * 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-trading equity instrument investments as financial assets measured at
fair value through other comprehensive income. Such designation once made may not be
revoked. The non-trading equity instrument investments designated by the Group to be measured
at fair value through other comprehensive income are initially measured at fair value and the
relevant transaction costs are included in the initial recognition amount; Except for dividends
obtained (except for the recovery of investment costs) which are included in the current profit and
loss other relevant gains and losses (including exchange profit or loss) are included in other
comprehensive income and shall not be subsequently transferred to the current profit or loss.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
84Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
quotation.For financial assets other than those classified as financial assets measured at amortized cost
and financial assets measured at fair value through other comprehensive income. The Group
classifies them as financial assets measured at fair value through current profit or loss. These
financial assets are initially measured at fair value and the relevant transaction costs are directly
included in the current profit or loss. Gains or losses arising from these financial assets is
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 is classified as the financial assets measured at
fair value through current profit or loss.
(3) Classification recognition basis and measurement method 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: * Financial 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. * Financial liabilities arising from
the transfer of financial assets not meeting the derecognition conditions or continuous
involvement in the transferred financial assets. * Financial guarantee contract not belonging to
cases of above * or * and loan commitments at interest rate lower than the market rate not
belonging to the case in * .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.
(4) Impairment of financial instruments
Based on expected credit loss the Group recognizes impairment and provisions for losses on
financial assets measured at amortized cost debt investments measured at fair value with
changes in fair value recognized in other comprehensive income contract assets lease
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receivables loan commitments and financial guarantee contracts.
1) Measurement of expected credit loss
Expected credit losses refer to the weighted average of credit losses of financial instruments that
are weighted by the risk of default. 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.Expected credit loss throughout the lifespan refers to the expected credit loss caused by all
possible default events that may occur during the expected lifespan of a financial instrument.Expected credit loss in the next 12 months refers to the expected credit loss caused by a financial
instrument default event that may occur within 12 months after the balance sheet date (if the
expected lifespan of the financial instrument is less than 12 months the actual expected lifespan
applies) which is a part of the expected credit loss during the entire lifespan.For accounts receivable notes receivable receivables financing contract assets and other
receivables arising from daily operating activities such as sales of goods and rendering of labor
services if they do not contain significant financing components the Group adopts a simplified
measurement method to measure the loss provision at the amount equivalent to the expected
credit loss during the entire lifespan.For lease receivables receivables containing significant financing components and contract
assets the Group adopts the simplified measurement method to measure the loss provision at
the amount equivalent to the expected credit loss over the entire lifespan.For financial assets other than those to which the simplified measurement approach is applied
(such as debt investments other debt investments and other receivables) as well as loan
commitments and financial guarantee contracts the Group applies the general approach (a three-
stage model) to measure the allowance for expected credit losses. On each balance sheet date
the Group assesses whether there is significant increase in credit risk since initial recognition. If
the credit risk has not increased significantly since initial recognition it is in the first stage. In this
case the Group accrues the loss provision at the amount equivalent to the expected credit loss in
the next 12 months and calculates the interest income according to the book balance and the
effective interest rate; if the credit risk has increased significantly since initial recognition but
credit impairment has not occurred it is in the second stage. In this case the Group accrues the
loss provision at an amount equivalent to the expected credit loss during the entire lifespan and
calculates the interest income according to the book balance and the effective interest rate; if a
credit impairment occurs after initial recognition it is in the third stage. In this case the Group
accrues the loss provision at an amount equivalent to the expected credit loss over the entire
lifespan and calculates the interest income at amortized cost and effective interest rate.
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For financial instruments with low credit risk on the balance sheet date the Group assumes that
there is no significant increase in their credit risk since initial recognition. Regarding the Group's
criteria for determining significant increases in credit risk and the definition of assets with credit
impairment please refer to Note XIII. 1 (2) for disclosure.When the Group uses the expected credit loss model to assess the impairment of financial
instruments and contract assets the expected changes in the debtors' credit risk are inferred
based on historical repayment data and in combination with economic policies macroeconomic
indicators industry risks and other factors. Different estimates may affect the provision for
impairment therefore the provision for impairment already made may not be equal to the actual
amount of impairment loss in the future.
2) Portfolio category and determination basis of provision for impairment made by
portfolio with credit risk characteristics
The Group assesses the expected credit loss of financial instruments on an individual and
portfolio basis. When assessing on a portfolio basis the Group divides financial instruments into
different groups based on common credit risk characteristics. The common credit risk
characteristics adopted by the Group include: type of financial instrument credit risk rating and
aging of receivables.
3) Judgment criteria for individual provision for impairment of bad debts based on
individual basis
If the credit risk characteristics of a certain customer are significantly different from those of other
customers in the portfolio or if the credit risk characteristics of that customer have changed
significantly such as amounts due from related parties; Receivables that are in dispute with the
counterparty or involve litigation or arbitration; Receivables for which there are clear indications
that the debtor is highly unlikely to be able to fulfill its repayment obligations etc.
4) Write-off of provision for impairment
When the Group no longer reasonably expects to recover all or part of the cash flows from
financial asset contracts the Group directly reduces the carrying amount of the financial asset. If
a written-off financial asset is recovered subsequently the recovered amount is recognized in
profit or loss for the period of recovery as a reversal of impairment loss.
(5) Recognition basis and measurement method of financial asset transfers
The Group derecognizes the financial assets that meet one of the following conditions: * the
contractual right to receive the cash flow from the financial assets is terminated; * The financial
assets have been transferred and the Group has transferred almost all the risks and rewards of
ownership of the financial assets; * The financial assets have been transferred and the Group
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has neither transferred nor retained almost all risks and rewards of ownership of the financial
assets nor has it retained control over the financial assets.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 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.
(6) Distinction between financial liabilities and equity instruments and related treatment
methods
The Group distinguishes the financial liabilities and equity instruments according to the following
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 the former the instrument is a financial liability
of the issuer; if the latter the instrument is an 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.
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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.
(7) Offset of 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. However when the following conditions are met simultaneously the net
amount after mutual offset is presented in the balance sheet: (1) the Group has the legal right to
offset the recognized amount and such legal right is currently enforceable; (2) the Group plans to
settle them on a net basis or realize the financial assets and settle the financial liabilities at the
same time.
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 Bills The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of accepters (the same as accounts 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.
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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
Aging Portfolio This portfolio is accounts receivable with aging as the credit risk feature
Related Party
Portfolio The accounts receivable from the other entities within the consolidation scope
14. Receivables 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 provision for losses of other receivables as below: * for financial
assets with no significant increase in credit risk since initial recognition the Group measures the
provision for loss according to the amount of expected credit loss in the next 12 months; * for
financial assets whose credit risk has increased significantly since initial recognition the Group
measures the provision for loss at an amount equivalent to the expected credit loss of the
financial instrument during the entire lifespan; * for purchased or internally generated financial
assets which have undergone credit impairment the Group measures the provision for loss at an
amount equivalent to the expected credit loss over the entire lifespan. 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
Aging Portfolio This portfolio is other receivables with aging as the credit risk feature
Low-Risk Portfolio This portfolio's credit risk characteristics are other receivables with extremelylow risk such as petty cash security deposits and deposits
Related Party
Portfolio Other receivables from the other entities within the consolidation scope
16. Contract assets
(1) Recognition methods and standards for 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
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one of the 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 methods and accounting treatments of expected credit losses of
contract assets
The method for determining the expected credit losses of contract assets involves measuring the
impairment losses of contract assets by referencing the method used for the impairment loss
measurement of receivables as previously described.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 amount of the current provision for impairment of
contract assets the Group recognizes the difference as an impairment loss by debiting
“impairment loss on assets” and crediting “provision for impairment of contract assets”. 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 loss and determines that the relevant contract assets cannot be
recovered and the write-off is approved the "provision for impairment of contract assets" is
debited and the "contract assets" is credited according to the approved write-off amount. If the
write-off amount is greater than the provision for losses that has been made the difference is
debited into "losses from asset impairment".
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 system is adopted and inventories are valued at actual cost upon
acquisition; the actual cost of inventories that have undergone requisition and dispatch is
determined by weighted average method. Low-value consumables and packaging are amortized
through the one-off charge-off method.For merchandise inventories directly for sale such as finished goods goods in process and
materials for sale their net realizable values are determined at the estimated selling prices of the
inventories minus the estimated selling expenses and relevant taxes and surcharges; the net
realizable value of material inventory held for production purposes is determined by subtracting
the estimated costs to be incurred until completion estimated sales expenses and related taxes
from the estimated selling price of the finished products produced. For inventories with large
quantity and low unit price the provision for inventory depreciation is made according to the
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inventory category; for inventories related to the product series produced and sold in the same
area with the same or similar end use or purpose and difficult to be measured separately from
other items the provision for inventory depreciation is made on a consolidated basis.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
the 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 book value; 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. 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
Portfolio credit risk characteristics
19. Long-term equity investments
The Group's long-term equity investments are mainly investments in subsidiaries and associates.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
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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.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
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held before the purchase date is designated as the financial assets measured at fair value
through other comprehensive income the cumulative gains or losses of the equity originally
recognized in other comprehensive income shall be transferred from other comprehensive
income and recognized in retained earnings; For financial assets measured at fair value through
current profit or loss the gains or losses of the equity originally included in the profit or loss from
changes in fair value need 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 above long-term equity investments obtained through business combinations long-term
equity investments obtained through cash payments are recognized as investment costs based
on the actual purchase price paid; For long-term equity investments acquired by issuing equity
securities the fair value of the issued equity securities is taken as the investment cost; For long-
term equity investments invested by investors the value agreed in the investment contract or
agreement shall be taken as the investment cost.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.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. In recognizing the share of net profit or loss of an investee the fair
value of the identifiable assets of the investee at the time of investment acquisition is used as the
basis for recognizing the net profit of the investee in accordance with the Group's accounting
policies and accounting periods with the offsetting of the portion of gains and losses on internal
transactions with associates and joint ventures that are attributable to the investor based on the
proportion of the investor's ownership interest and the net profit of the investee is recognized
after adjustments are made to the net profit of the investee.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
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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.If common control or significant influence over an investee is lost due to the disposal of a portion
of the equity investment etc. the remaining equity interest after disposal is reclassified to be
accounted for in accordance with the relevant provisions of the guidelines for the recognition and
measurement of financial instruments and the difference between the fair value of the remaining
equity interest at the date of the loss of common control or significant influence and its book value
is recognized in current profit or loss. For long-term equity investment accounted by equity
method other comprehensive income accounted by the original equity method 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 that the control over the investee is lost due to the disposal of part of the long-term equity
investments if the remaining equity after disposal can exercise joint control or significant
influence on the investee the accounting method is changed to equity method. The difference
between the book value of the disposal equity and the disposal consideration shall be included in
the investment income and the remaining equity is adjusted as if it were accounted for using the
equity method from the time of acquisition; if the remaining equity after disposal is insufficient for
exercising joint control or significant influence on the investee accounting treatment shall be
made in accordance with the relevant provisions of the recognition and measurement standards
for financial instruments. The difference between the book value of the disposed 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 remaining equity on the date of loss of control is included
in the current profit or loss.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.
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20. Investment properties
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 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. For subsequent
expenses related to the investment property if the economic benefits related to the asset are
likely to flow in and the cost can be measured reliably they are included in the cost of the
investment property. Other subsequent expenses are included in the current profit or loss when
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 VI. 26. "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. When a
property is converted to an investment property measured using the cost model the book value
before conversion is taken as the entry value after conversion; When a property is converted into
an investment property measured at fair value the fair value on the conversion date is recognized
as the entry value after conversion.An investment property is derecognized on disposal or when the investment property is
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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.
21. Fixed assets
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 straight-line depreciation
method (SLD) is adopted. The classified depreciation life estimated net residual value rate and
depreciation rate of the Group's fixed assets are as follows:
Type Depreciation Depreciation period Expected net AnnualNo. period (year) (year) salvage value (%)deprecation (%)
Housing and Straight-line
1 building
depreciation 20-40 5-10.00 2.25-4.75
method
Machinery Straight-line
equipment depreciation 5-10 5-10.00 9.00-19.002 method
Electronic Straight-line
equipment depreciation 3-5 5-10.00 18.00-31.673 method
Transportation Straight-line
vehicle depreciation 3-5 5-10.00 18.00-31.674 method
Straight-line
Other equipment depreciation 5 5-10.00 18.00-19.00
5 method
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.
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22. Construction in progress
The cost of construction in progress is determined based on actual project expenditures
including all necessary project expenditures incurred during construction borrowing costs to be
capitalized before the project reaches its predetermined usable state and other related expenses
etc.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.Construction in progress is transferred to fixed assets upon reaching the predetermined usable
state with the criteria as follows:
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially
completed meeting the predetermined design requirements. Upon joint
acceptance by the Company’s Engineering Department and units
Housing and building responsible for surveying design construction supervision etc. and
government departments such as the Fire Services Department and the
Housing Authority and reaching the predetermined usable state following
process approval it is transferred to fixed assets.The equipment management department and the equipment manufacturer
are jointly responsible for the installation and commissioning of the
Machinery equipment equipment including hardware debugging process conditions debugging
etc. Upon completion of debugging and reaching the predetermined usable
state following process approval it is transferred to fixed assets.
23. Borrowing costs
The Group capitalizes borrowing costs directly attributable to the acquisition construction or
production of qualifying assets as part of the cost of those assets. Other borrowing costs are
recognized as expenses in the current period. The assets that meet the capitalization conditions
determined by the Group include the borrowing costs of fixed assets investment real estate and
inventories that need more than one year of acquisition and construction or production activities
to reach the expected serviceable or marketable status. Capitalization starts when asset
expenditures have been incurred borrowing costs have been incurred or necessary purchasing
construction or production activities have begun to bring the assets to their intended usable or
marketable status; when the acquired and constructed or produced assets that meet the
capitalization conditions have reached the working condition for their intended use or sale the
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capitalization is ceased and the borrowing costs incurred thereafter is included in the current
profit or loss. 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.During each accounting period within the capitalization process the Group recognizes the
capitalization amount of borrowing costs using the following method: for specialized borrowings
the capitalization amount is based on the actual interest expenses incurred in the current period
after deducting the interest income earned from unused borrowing funds deposited in the bank or
investment income earned from temporary investments; where general borrowings are used they
shall be determined by multiplying the weighted average of asset disbursements of the part of
accumulated asset disbursements exceeding special borrowings by the capitalization rate of used
general borrowings and the capitalization rate is calculated and determined according to the
weighted average interest rate of the general borrowings.
24. 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: * initial measurement amount
of the lease liabilities; * lease payment amount paid on or before the start date of the lease term.If there is any lease incentives the lease incentives that have been enjoyed are deducted; * the
initial direct costs incurred i.e. the incremental costs incurred in obtaining the lease agreement;
* the cost 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 upon
in the lease terms except for those incurred for the production of inventory.
(2) Subsequent 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
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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 life of right-of-use assets the Group follows the following
principles: if it can be reasonably determined that the ownership of the leased assets will be
obtained at the expiration of the lease term the depreciation is accrued over the remaining
service life of the leased assets; if it can not be reasonably determined that the ownership of the
leased asset can be obtained at the expiration of the lease term the depreciation is accrued over
the shorter of the lease term or 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.
25. Intangible assets
Intangible assets of the Group include land use rights patented technologies non-patented
technologies etc. They are measured at the actual cost on acquisition. Specifically for purchased
intangible assets the actual price paid and other relevant expenses are taken as the actual cost;
for intangible assets invested by investors the value agreed in the investment contract or
agreement is taken as the actual cost. However if the value agreed in the contract or agreement
is not fair the actual cost is determined according to the fair value; For intangible assets such as
patents acquired from a merger not under the same control if they were owned the acquired
party but not recognized in its financial statements they shall be recognized as intangible assets
at fair value upon initial recognition of the acquired party's assets.
(1) Service life and basis for determination estimates amortization method or review
procedure
Intangible assets of the Group include land use rights patented technologies non-patented
technologies etc. They are measured at the actual cost on acquisition. Specifically for purchased
intangible assets the actual price paid and other relevant expenses are taken as the actual cost;
for intangible assets invested by investors the value agreed in the investment contract or
agreement is taken as the actual cost. However if the value agreed in the contract or agreement
is not fair the actual cost is determined according to the fair value; For intangible assets such as
patents acquired from a merger not under the same control if they were owned the acquired
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party but not recognized in its financial statements they shall be recognized as intangible assets
at fair value upon initial recognition of the acquired party's assets.
(2) Scope of R&D expenditures and related accounting treatments
The scope of the Group's R&D expenditures includes salaries of R&D personnel direct input
costs depreciation and amortization design fees equipment testing fees fees for R&D
outsourced to external parties and other expenses.The Group classifies its internal research and development project expenditures into expenditure
on the research phase and expenditure on the development phase based on the nature of the
expenditures and the degree of uncertainty in whether the R&D activities will result in an
intangible asset. Expenditure on the research phase are recognized in profit or loss when
incurred. Expenditure on the development phase are capitalized when all of the following
conditions are met:
* The Group has assessed the technical feasibility of completing the intangible asset so that it
will be available for use or sale;
* The Group intends to complete the intangible asset and use or sell it;
* It is probable that the intangible asset will generate future economic benefits.* The Group has the adequate technical financial and other resources to complete the
development and to use or sell the intangible asset;
* The expenditure attributable to the development phase of the intangible asset can be
measured reliably. Development phase expenditures not meeting these capitalization criteria are
recognized in profit or loss for the current period when incurred.
26. Impairment of long-term assets
For non-current non-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. Goodwill intangible assets with uncertain service life and other non-
accessible intangible assets should be tested for impairment at the end of each year regardless
of whether there is any indication of impairment.Impairment of non-current assets other than financial assets (except goodwill)
If the recoverable amount is less than book 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
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cash flow. The fair value of the assets is determined according to the sales agreement price in
fair transactions; If there is no sales agreement but there is an active market for the asset the fair
value is determined based on the buyer's offer for the asset; If there is neither sales agreement
nor an active market for the asset the fair value is estimated based on the accessible optimum
information. 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.
27. Impairment of goodwill
In impairment test book value of the business reputation in financial report should be shared to
beneficial asset group and asset group combination in collaboration of business combinations. 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 book value of business
reputation of asset group or asset group combination then deduct book value of all assets
according to proportions of other book value of above assets in asset group or asset group
combination except business reputation.The methodology parameters and assumptions for the goodwill impairment test are detailed in
Note VIII. 19.After the asset impairment loss is determined recoverable value amounts would not be returned
in future.
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 or 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
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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 recognized 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 dismissal welfare
remuneration and liabilities produced from the dismissal welfare should be determined and
included in current profits and losses when determining the costs of dismissal welfare and
recombination. However dismissal 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
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 (dismissal 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
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The Group initially measures the lease obligation at the present value of the lease payments
outstanding at the lease commencement date.
1) Lease payments
Lease payment amount refers to the amount paid by the Group to the lessor in relation to the
right to use the leased asset during the lease term including: * fixed payment amount and
substantially fixed payment amount with lease incentives (if any) deducted from the relevant
amount; * The amount of variable lease payments that depend on an index or ratio which is
determined at the time of initial measurement based on the index or ratio at the commencement
date of the lease term; * The exercise price of the call option when the Group reasonably
determines that the call option will be exercised; * The amount needs to be paid for exercising
the lease termination option when the lease term reflects that the Group will exercise the option to
terminate the lease; * The amount expected to be paid according to 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: * the Group's own
situation that is the company's solvency and credit status; * the term of the "borrowings" i.e.the lease term; * The amount of "borrowed" funds i.e. the amount of the lease liability; *
"Collateral conditions" i.e. the nature and quality of the subject assets; * Economic
circumstances including the jurisdiction in which the lessee is located pricing currency time of
contract signing 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） Subsequent measurement
After the commencement date of the lease term the Group subsequently measures the lease
liability according to the following principles: * increase the carrying amount of the lease liability
when recognizing interest on the lease liability; * when the lease payment is made the book
amount of the lease liability is reduced; * when the lease payment changes due to revaluation or
lease change the book value of the lease liability is re-measured.
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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
After the lease commencement date 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 amount of the right-of-use
asset has been reduced to zero but the lease liability still needs to be further reduced the Group
recognizes the remaining amount in profit or loss for the current period. * there have been
changes in substantially fixed payments (in which case the original discount rate is adopted); *
there have been changes in the estimated payable amount of the guarantee residual value (in
which case the original discount rate is adopted);* there have been changes in the index or
ratio used to determine the lease payments (in which case the revised discount rate is adopted);
* there have been changes in the valuation results of the call option (in which case the revised
discount rate is adopted); * there have been changes in the evaluation results or actual exercise
of the option to renew or terminate the lease (in which case the revised discount rate is adopted).
32. Estimated liabilities
When an obligation related to a contingency meets the following conditions simultaneously it is
recognized as an estimated liability: (1) the obligation is a present obligation undertaken by the
Group; (2) the performance of the obligation is likely to result in an outflow of economic benefits;
(3) the amount of the obligation can be reliably measured.
The projected liabilities are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation with the risks related to contingent
matters uncertainty the time value of money and other factors taken into consideration. The
Group reviews the current best estimate of the provisions for contingent liabilities at the balance
sheet date and adjusts the carrying amount of the provision as necessary.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 book value of the
estimated liabilities.
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33. Preferred shares perpetual bonds and other financial instruments
Preferred shares and perpetual debt classified as debt instruments shall be initially measured at
their fair value less transaction costs and subsequently measured at amortized cost using the
effective interest rate method. Interest expenses or dividend distributions thereon shall be
accounted for in accordance with borrowing costs. Gains or losses arising from their repurchase
or redemption shall be recognized in profit or loss for the current period.For preferred shares and perpetual bonds classified as equity instruments the consideration
received upon issuance net of transaction costs is added to owners' equity. Their interest
expense or dividend distributions are treated as profit distribution and any repurchase or
cancellation is treated as a change in equity.
34. Income
(1) General principles
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.Performance obligation refers to the Group's commitment in a contract to transfer clearly
distinguishable goods to the customer. A performance obligation of the Group is deemed as an
obligation to be fulfilled within a certain period of time if one of the following conditions is met;
Otherwise the performance obligation is satisfied at a point in time:
* The customer obtains and consumes the economic benefits brought by the Group's
performance at the same time as the Group performs the contract;
* The customer is capable of controlling the goods under construction during the performance of
the Group;
* The goods produced during the performance of the Group have irreplaceable uses and the
Group is entitled 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
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at the point in time when the customer obtains control of the relevant goods or services. When
determining whether a customer has obtained control over goods the Group considers the
following indications:
* The Group has the current right to receive the payment for the goods that is the customer has
the current obligation to pay for the goods;
* The Group has transferred the legal ownership of the goods to the customer that is the
customer already has legal ownership of the goods;
* The Group has physically transferred the goods to the customer that is the customer has
physically taken possession of the goods;
* The Group has transferred the significant risks and rewards pertaining to the ownership of the
goods to the customer that is the customer has obtained the significant risks and rewards;
* The customer has accepted the good or service etc.;
* Other signs indicating that the customer has gained control of the goods.The Group's right to consideration in exchange for goods or services that the Group has
transferred to a customer is presented as a contract asset. An impairment loss is recognized for
contract assets based on expected credit losses. The Group's unconditional right to receive
consideration from a customer is presented as a receivable. The Group's obligation to transfer
goods or services to a customer for which the Group has received or is receivable consideration
from the customer is presented as a contract liability.
(2) Income measurement principles
1)If the contract contains two or more performance obligations at the commencement date of the
contract the Group will allocate the transaction price to each single performance obligation based
on the relative proportion of the stand-alone selling price of the goods or services promised under
each single performance obligation. Revenue is measured at the transaction price of each single
performance obligation.
2)The transaction price is the amount of consideration that the Company 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
recognised by the Group does not exceed the amount for which it is highly probable that
cumulative revenue already recognised will not be significantly reversed when the related
uncertainties are resolved. Amounts expected to be refunded to the customer are treated as a
liability and not included in the transaction price.
3)Where a contract contains variable consideration such as cash discounts and price protection
included in certain contracts between the Group and its customers the Group determines the
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best estimate of variable consideration using the expected value method or the most likely
amount method. However the transaction price including variable consideration is constrained to
an amount that in relation to the cumulative revenue already recognised is highly probable not to
result in a significant reversal when the related uncertainties are resolved.
4) For consideration payable to a customer the Group deducts such consideration from the
transaction price and reduces current revenue at the later of when the related revenue is
recognised and when the consideration is paid (or promised to be paid) to the customer unless
the consideration payable is in exchange for other distinct goods or services obtained from the
customer.
5)For sales with sales return clauses when the customer obtains control of the relevant goods
the Group recognizes the revenue at the amount of consideration expected to be received due to
the transfer of goods to the customer and recognizes the amount expected to be refunded due to
sales return as estimated liabilities; In addition the balance of the expected book value of the
returned goods at the time of transfer less the expected cost of recovering the goods (including
the impairment of the value of the returned goods) is recognized as an asset i.e. the return cost
receivable. The net amount of the above asset cost is carried forward according to the book value
of the transferred goods at the time of assignment. On each balance sheet date the Group re-
estimates the future sales returns and re-measures the aforementioned assets and liabilities.
6) If there is a significant financing component in the contract the Group shall determine the
transaction prices according to the payable amount that is assumed to be paid in cash by the
customer when the customer obtains the right of control over goods or service. The difference
between the transaction price and the promised consideration in the contract is amortized over
the contract period using the effective interest method with the discount rate being the one that
discounts the nominal amount of the contract consideration to the cash selling price of the goods.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.
7)According 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 service-type
quality assurance where a separate service is provided in addition to the assurance to the
customer that the goods sold meet the established standards the Group treats it as a single
performance obligation and apportions a portion of the transaction price to the service-type
quality assurance based on the relative proportions of the separate selling prices of the goods
and the service-type quality assurance provided and recognizes revenue when the customer
obtains control of the service. When assessing whether the quality assurance provides a
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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.
8) When a contract modification occurs between the Group and a customer: * if the modification
adds distinct construction services and the contract price increases by an amount that reflects the
standalone selling price of the additional construction services the Group accounts for the
contract modification as a separate contract; * If the contract modification does not meet the
criteria in * and the construction services transferred before the modification date are distinct
from those not yet transferred the Group accounts for the modification as a termination of the
original contract. The remaining performance obligations of the original contract and the
modification are combined and treated as a new contract. * If the contract modification does not
meet the criteria in* and the construction services transferred before the modification date are
not distinct from those not yet transferred the Group accounts for the modification as part of the
original contract. The effect of the modification on revenue previously recognized is recognized as
an adjustment to revenue in the period in which the modification occurs.
(3) Specific method
The revenue of the Group mainly consists of the operating revenue from main business and other
business income.* 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.* Income confirmed according to the performance progress
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The Group's business contracts with customers for project construction operating leases etc. are
performance obligations performed within a certain period of time and revenue is recognized
according to the progress of the performance.
35. Contract costs
(1) 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.Contract performance cost refers to the cost incurred by the Group to perform a contract. If the
contract performance cost does not fall within the scope of other accounting standards for
business enterprises and meets the following conditions at the same time it is recognized as an
asset under contract performance cost: this cost is directly related to a current or expected
contract including direct labor direct materials manufacturing expenses costs clearly borne by
the customer as well as other costs incurred only due to this contract; This cost enriches the
Group's future resources to meet its performance obligations; This cost is expected to be
recovered.Contract acquisition cost refers to the incremental cost incurred by the Group to obtain the
contract that are expected to be recovered. It is recognized as an asset under contract acquisition
cost; if the amortization period of the asset does not exceed one year the asset is included in the
current profit or loss when the amortization 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.
(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 determining the impairment loss of assets related to contract costs the Group first
determines the impairment loss of other assets related to the contract recognized in accordance
with other relevant accounting standards for business enterprises; if its book value is higher than
the difference between the remaining consideration expected to be obtained by the Group from
the transfer of the goods related to the asset and the estimated cost to be incurred for the transfer
of the relevant goods the excess shall be provided for impairment and recognized as asset
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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.
36. Government subsidies
The government grants of the Group are divided into asset-based government grants and
income-based government grants. Specifically asset-based government grants refer to the
government grants obtained by the Group for the purpose of purchasing constructing or
otherwise forming long-term assets; income-based government grants refer to those other than
asset-based government 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 income-based government grants as a whole.If the government subsidies are monetary assets they shall be measured at the amount actually
received. For a subsidy allocated according to a fixed quota standard or when there is conclusive
evidence at the end of the year that the relevant conditions stipulated in the financial support
policies can be met and the financial support funds are expected to be received the subsidy shall
be measured according to the amount receivable; if the government grants are non-monetary
assets they are measured at fair value. Where the fair value cannot be reliably obtained the
grant is measured at a nominal amount (RMB1).Asset-based grants shall be used to offset the book 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 revenue and
expenditure.The Group obtains interest grants on policy-related concessional loans in two different ways: the
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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.
(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 a related deferred income the carrying balance of the related deferred income shall
be offset and any excess shall be recognized in profit or loss for the current period.
3) Under any other circumstances the grants will be included in profit or loss in the current period.
37. Deferred tax assets/deferred 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
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 tax assets and deferred tax liabilities are not
recognized. On the balance sheet date the deferred tax assets and deferred 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 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.
38. Leases
（1） Identification of Leases
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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 non-lease parts at the same time the Group will split the lease and non-lease parts for
accounting treatment.
（2） The Group as a Lessee
1) Lease Recognition
On the lease commencement date 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 VI "24. Right-of-use assets" and "31. Lease liabilities".
2) Lease Modification
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 there is any change in the lease and the following conditions are met at the same time the
Group shall account for the lease change as a separate lease: * the lease change expands the
lease scope or extends the lease term by adding the right to use one or more leased assets; *
The increased consideration is equivalent to the amount of the separate price of the expanded
part of the lease scope or the extended part of the lease term adjusted according to the contract
situation.If the lease change is not accounted for as a separate lease on the effective date of the lease
change the Group amortizes the consideration of the contract after the change in accordance
with the relevant provisions of the lease standards and re-determine the lease term after the
change; the revised discount rate is used to discount the changed lease payment to remeasure
113Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
the lease liabilities. When calculating the present value of the lease payment after the change
the Group uses the interest rate implicit in the lease for the remaining lease period as the
discount rate; where the interest rate implicit in the lease for the remaining lease term cannot be
determined the Group adopts the lessee's incremental borrowing rate on the effective date of the
lease change as the discount rate. 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: *
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.* 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 a 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.If a lease falls in one or more of the following circumstances the Group usually classifies it as a
finance lease: * the ownership of the leased asset will be transferred to the lessee at the
expiration of the lease term; * The lessee has the option to purchase the leased asset and the
purchase price is low enough compared with the fair value of the leased asset when the option is
expected to be exercised so it can be reasonably determined that the lessee will exercise the
option on the lease commencement date; * Although the ownership of the asset will not be
transferred the lease term covers most of the service life of the leased asset; * On the lease
commencement date the current value of the lease receipts is almost equal to the fair value of
the leased assets; * The leased asset can only be used by the lessee if no major modification is
made due to its special nature. If a lease has one or more of the following signs the Group may
114Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
also classify it as a finance lease: * If the lessee cancels the lease the losses caused to the
lessor by the cancellation of the lease are to be borne by the lessee; * Gains or losses arising
from fluctuations in the fair value of the residual value of the asset are attributable to the lessee;
* The lessee has the ability to continue the lease for a secondary period at a rent that is
substantially lower than market rent.
1) Accounting treatment for 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 receipts refer to the amount that the lessee shall collect from
the lessee due to the transfer of the right to use the leased asset during the lease term including:
* fixed payments and substantially fixed payments to be paid by the lessee; If there are lease
incentives the relevant amount of lease incentives shall be deducted; * The amount of variable
lease payments dependent on an index or ratio. This amount is determined at the time of initial
measurement based on the index or ratio at the commencement date of the lease term; * The
exercise price of a purchase option if it is reasonably certain that the lessee will exercise that
option; * The amount to be paid by the lessee for exercising the option to terminate the lease
provided that the lease term reflects that the lessee will exercise of the option to terminate the
lease; * The residual value of the guarantee provided by the lessee the party related to the
lessee or an independent third party economically capable of fulfilling the guarantee obligation to
the lessor.Subsequent 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
115Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
If there is a change in a finance lease and the following conditions are met at the same time the
Group shall account for the change as a separate lease: * the change expands the scope of the
lease by adding the right to use one or more leased assets; * The increased consideration is
equivalent to the amount of the separate price of the expanded part of the lease scope adjusted
according to the contract situation.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 for operating leases
Treatment of rent
During each period of the lease term the Group recognizes lease receipts from operating leases
as rental income on a straight-line basis.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 expenses
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 fixed assets in assets under operating lease the Group adopts the depreciation policy for
similar assets to accrue depreciation; For other assets under operating lease a systematic and
reasonable method is adopted for amortization.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
116Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
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.
39. Fair value measurement
The Group measures equity instrument investments at fair value on each balance sheet date.Fair value refers to the price that can be received from selling an asset or paid to transfer a
liability in an orderly transaction between market participants on the measurement date.For assets and liabilities measured or disclosed at fair value in the financial statements the fair
value level to which they belong is determined according to the lowest level input that is
significant to the fair value measurement as a whole: Level 1 inputs refer to unadjusted quoted
prices in the active market for the same assets or liabilities that can be obtained on the
measurement date; Level 2 inputs refer to inputs other than Level 1 inputs that are directly or
indirectly observable for the relevant assets or liabilities; Level 3 inputs are the unobservable
inputs of related assets and liabilities.On each balance sheet date the Group re-evaluates the assets and liabilities continuously
measured at fair value recognized in the financial statements to determine whether there is a
conversion between the levels of fair value measurement.
40. Major changes in accounting policies and accounting estimates
(1) Major changes in accounting policies
The Group had no changes in accounting policies during the current period
(2) Major changes in accounting estimates
The Group had no changes in accounting estimates during the current period
VII. Taxation
1. Main tax types and tax rates
Taxation Tax basis Tax rate
Calculated the output tax at the
tax rate and paid the VAT by the
Value-added tax amount after deducting the 1%3%5%6%9%13%
deductible withholding VAT at
current period of which the VAT
117Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
applicable to easy collection
won’t belong to the deductible
withholding VAT.Urban maintenance and 5% 7% / See 2. Tax Preference
The circulating tax actually paid
construction tax for details
3% / See 2. Tax Preference for
Education surcharge The circulating tax actually paid
details
2% / See 2. Tax Preference for
Local education surcharge The circulating tax actually paid
details
25% / See 2. Tax Preference for
Enterprise income tax Taxable income
details
Notes to the taxpayers with different enterprise income tax rates
Name of entity Income tax rate
Electronic Technology Anhui Konka Anhui
Tongchuang Xingda Hongye Bokang Precision 15%
Chengdu Konka Electronic
Hong Kong Konka Hongdin Trading Jiali
International Hongjet Jiaxin Technology
Hongdin Invest Konka Mobility Zhongkang 16.50%
Storage Technology Kowin Memory (Hong Kong)
Konka Europe 15%
Kanghao Technology 22.50%
Konka North America 21%
Parent company and other subsidiaries 25%
Remarks: According to the Temporary Provisions of Income Tax of Trans-boundary Tax Payment
Enterprises by State Taxation Administration resident enterprises without business establishment
or places of legal persons should be tax payment enterprises with the administrative measures ofenterprise income tax of “unified computing level-to-level administration local prepaymentliquidation summary and finance transfer”. It came into force from January 1 2008. According to
the above methods the Company’s sales branch companies in each area will hand in the
enterprise income tax in advance from January 1 2008 and will be final settled uniformly by the
Company at the year-end.
2. Tax incentives
(1) According to the announcement of the State Taxation Administration No. 12 of 2023: small
low-profit enterprises shall reduce the taxable income amount by 25% and pay the enterprise
income tax at the tax rate of 20% which shall be continued until 31 December 2027. Resource
tax (excluding water resource tax) urban maintenance and construction tax property tax urban
land use tax stamp duty (excluding stamp duty on securities transactions) farm land occupation
tax education surcharge and local education surcharge shall be levied by half on small-scale
118Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
VAT taxpayers small low-profit enterprises and individually-owned businesses from January 1
2023 to December 31 2027. The Company's subsidiaries Yibin Konka Intelligent Anlu Konka
Kangjiatong Nantong Konka Digital Technology Xiaojia Technology Shanghai Konka Guizhou
Konka New Materials Ji'an Konka Xi'an Konka Intelligent Zhejiang Konka Technology Industry
Konka North China Zhitong Technology Songyang Konka Intelligent and Liaoyang Kangshun
Renewable enjoyed the aforementioned tax incentive policies during the Reporting Period.
(2) On October 28 2025 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 Anhui Provincial Tax Service of
the State Taxation Administration with the certificate number GR202534004181 which is valid
for three years. According to relevant tax regulations Anhui Konka will enjoy the relevant tax
incentives for high-tech enterprises for three consecutive years from 2025 to 2027 paying
enterprise income tax at a preferential rate of 15%.
(3) On October 28 2025 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 Anhui Provincial Tax
Service of the State Taxation Administration with the certificate number GR202534002702
which is valid for three years. According to relevant tax regulations Anhui Tongchuang will enjoy
the relevant tax incentives for high-tech enterprises for three consecutive years from 2025 to
2027 paying enterprise income tax at a preferential rate of 15%.
(4) On December 19 2025 Bokang Precision a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Guangdong Province the Department of Finance of Guangdong Province and the Guangdong
Provincial Tax Service of the State Taxation Administration with the certificate number
GR202544008694 and validity period of three years. According to relevant tax regulations
Bokang Precision will enjoy the relevant tax incentives for high-tech enterprises for three
consecutive years from 2025 to 2027 paying enterprise income tax at a preferential rate of 15%.
(5) On December 25 2025 Electronic Technology a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by the Shenzhen Science and Technology
Innovation Committee the Shenzhen Finance Bureau and the Shenzhen Tax Service of the
State Taxation Administration with the certificate number GR202544205959 which is valid for
three years. According to relevant tax regulations Electronic Technology will enjoy the relevant
tax incentives for high-tech enterprises for three consecutive years from 2025 to 2027 paying
enterprise income tax at a preferential rate of 15%.
119Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(6) On November 19 2024 Xingda Hongye a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Guangdong Province the Department of Finance of Guangdong Province and the Guangdong
Provincial Tax Service of the State Taxation Administration with the certificate number
GR202444002600 which is valid for three years. According to relevant tax regulations Xingda
Hongye will enjoy the relevant tax incentives for high-tech enterprises for three consecutive years
from 2024 to 2026 paying enterprise income tax at a preferential rate of 15%.
(7) In accordance with the Announcement on the Renewal of the Enterprise Income Tax Policy
for Western Development Enterprises (Ministry of Finance State Taxation Administration
National Development and Reform Commission Announcement No. 23 of 2020) 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 60% of its gross income in the current year is entitled to a reduced enterprise income tax
rate of 15%. Chengdu Konka Electronic a subsidiary of the Company is eligible for this
preferential tax policy.
(8) According to the CS [2011] No. 100 published by the Ministry of Finance and the State
Taxation Administration 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 portion of
the actual VAT burden exceeding 3% shall be refunded immediately upon collection. The
Company's subsidiary Electronic Technology enjoys this preferential policy.VIII. Notes to items in consolidated financial statements
1. Monetary funds
Item Ending balance Beginning balance
Cash on hand
Bank deposits 2037866049.15 5169889627.52
Other monetary assets 650077025.18 1144052257.53
Total 2687943074.33 6313941885.05
Of which: Total amount of funds deposited
29392457.651131315.16
overseas
2. Financial assets held for trading
Item Ending balance Beginning balance
120Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Financial assets measured at fair value through current
138775929.60202027000.00
profit or loss
Including: Investment in equity instruments 138775929.60 202027000.00
Total 138775929.60 202027000.00
3. Notes receivable
(1) Presentation of notes receivable by category
Item Ending balance Beginning balance
Bank Acceptance Bills 132760150.46 50977695.45
Trade Acceptance 24160889.26 26339290.11
Total 156921039.72 77316985.56
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for bad
debts by the single item
Provision set aside for bad
157424186.04100.00503146.320.32156921039.72
debts by portfolio
Of which: Bank acceptance bills 132760150.46 84.33 132760150.46
Trade Acceptance 24664035.58 15.67 503146.32 2.04 24160889.26
Total 157424186.04 100.00 503146.32 0.32 156921039.72
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for bad
debts by the single item
Provision set aside for bad 77865496.73 100.00 548511.17 0.70 77316985.56
121Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
debts by portfolio
Of which: Bank acceptance bills 50977695.45 65.47 50977695.45
Trade Acceptance 26887801.28 34.53 548511.17 2.04 26339290.11
Total 77865496.73 100.00 548511.17 0.70 77316985.56
Provision for expected credit losses on commercial acceptance draft based on aging in the portfolio
Ending balance
Name Provision percentage
Book balance Provision for bad debts
(%)
Within 1 year 24664035.58 503146.32 2.04
Total 24664035.58 503146.32 2.04
(3) Provision for bad debts accrued recovered or reversed for the current period
Changes in the current period
Beginning Charge- Ending
Type Recovered or
balance Provision off or Others balance
reversed
write-off
Trade Acceptance 548511.17 495534.77 540899.62 503146.32
Total 548511.17 495534.77 540899.62 503146.32
(4) The Company's pledged notes receivable at the end of the period
No notes receivable were pledged at the end of the current period.
(5) Notes receivable endorsed or discounted by the Company and not yet due on the balance
sheet date at the end of the period
Item Ending derecognized amount Ending un-derecognized amount
Bank Acceptance Bills 841845519.92 300000.00
Trade Acceptance 23699692.56
Total 841845519.92 23999692.56
122Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(6) Actual write-off of notes receivable for the current period
No notes receivable were actually written off in the current period.
4. Accounts receivable
(1) Accounts receivable listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 1006565494.60 872534288.66
1-2 years 16666024.97 33230346.13
2-3 years 215086078.61 416551776.82
3-4 years 52952776.22 92779205.23
4-5 years 143183926.78 114178358.99
Over 5 years 1436753750.51 1445571151.66
Total 2871208051.69 2974845127.49
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 1533714952.74 53.42 1528067007.07 99.63 5647945.67
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 1337493098.95 46.58 306757875.77 22.94 1030735223.18
Subtotal of portfolio 1337493098.95 46.58 306757875.77 22.94 1030735223.18
Total 2871208051.69 100.00 1834824882.84 63.90 1036383168.85
(Continued)
Beginning balance
Type
Book balance Provision for bad debts Book value
123Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 1573873380.74 52.91
item 1537243420.22 97.67 36629960.52
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 1400971746.75 47.09 350672695.12 25.03 1050299051.63
Subtotal of portfolio 1400971746.75 47.09 350672695.12 25.03 1050299051.63
Total 2974845127.49 100.00 1887916115.34 63.46 1086929012.15
1） Provision set aside for bad debts of accounts receivable by single item
Beginning balance Ending balance
Provision Reasons
Name Provision for Provision for bad
Book balance Book balance percentage for the
bad debts debts
(%) provision
CEFC Shanghai Not
expected to
International 298280558.37 298280558.37 298073128.27 298073128.27 100.00 be
Group Limited recoverable
Hongtu
Not
Sanpower expected to
200000000.00200000000.00200000000.00200000000.00100.00
Technology Co. berecoverable
Ltd.Not
Luxiao Group
159702611.45 159702611.45 100.00 expected to159702611.45 159702611.45
Co. Ltd. berecoverable
Shenzhen
Not
Yaode
139976261.62 139976261.62 100.00 expected to144454581.31 144454581.31
Technology Co. berecoverable
Ltd.Guang'an
Ouqishi Expected
Electronic 113139940.86 110965942.46 113139940.86 110965942.46 98.08
to be
difficult to
Technology Co. recover
Ltd.Not
Zhongfu expected to
71289096.6571289096.6571289096.6571289096.65100.00
Tiangong berecoverable
124Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Beginning balance Ending balance
Provision Reasons
Name Provision for Provision for bad
Book balance Book balance percentage for the
bad debts debts
(%) provision
Construction
Group Co. Ltd.CCCC First
Not
Harbor
65221300.00 65221300.00 100.00 expected to65221300.00 65221300.00
Engineering berecoverable
Company Ltd.Gome
Customization Not
57021975.73 57021975.73 100.00 expected to(Tianjin) Home 57021975.73 57021975.73 be
Appliances Co. recoverable
Ltd.Not
Xingda Hongye expected to
51902301.9551902301.9551902301.9551902301.95100.00
(HK) Limited berecoverable
Dongguan High
Not
Energy Polymer expected to
50699037.7032893535.6635866471.0232893535.6691.71
Materials Co. berecoverable
Ltd.Expected
to be
Others 362161976.72 345511516.64 341521865.19 341020853.28 99.85 difficult to
recover
Total 1573873380.74 1537243420.22 1533714952.74 1528067007.07 99.63
2） Provision set aside for bad debts of accounts receivable by portfolio
Ending balance
Aging Provision percentage
Book balance Provision for bad debts
(%)
Within 1 year 1002154193.21 20443945.58 2.04
1-2 years 16666024.97 1669935.73 10.02
2-3 years 29882254.15 6780283.42 22.69
3-4 years 31113085.29 20186169.71 64.88
4-5 years 75185549.88 75185549.88 100.00
Over 5 years 182491991.45 182491991.45 100.00
Total 1337493098.95 306757875.77 22.94
125Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(3) Provision for bad debts accrued recovered or reversed for the current period
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of
1887916115.34
accounts receivable 15093788.21 55655984.86
Total 1887916115.34 15093788.21 55655984.86
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of
accounts receivable -12529035.85 1834824882.84
Total -12529035.85 1834824882.84
Remarks: The amount of other changes during the current period includes a decrease of RMB
12529035.85 resulting from foreign exchange rate movements.
(4).Actual write-off of accounts receivable for the current period
No accounts receivable were actually written off in the current period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
The total amount of accounts receivable with top five ending balance categorized by debtors in the
current period was RMB 1086005807.89 accounting for 37.82% of the total ending balance of
accounts receivable. The total ending balance of provision for bad debts correspondingly set aside
was RMB 803666036.71.
5. Contract assets
(1) Details of contract assets
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
bad debts bad debts
Warranty 2194100.57 414180.09 1779920.48 2194100.57 301794.27 1892306.30
Total 2194100.57 414180.09 1779920.48 2194100.57 301794.27 1892306.30
126Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Book balance Provision for bad debts
Type Provision
Percentag Book value
Amount Amount percentage
e (%)
(%)
Provision set aside for bad debts
by the single item
Provision set aside for bad debts
by portfolio
Of which: Aging portfolio 2194100.57 100.00 414180.09 18.88 1779920.48
Subtotal of portfolio 2194100.57 100.00 414180.09 18.88 1779920.48
Total 2194100.57 100.00 414180.09 18.88 1779920.48
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for bad debts by
the single item
Provision set aside for bad debts by
portfolio
Of which: Aging portfolio 2194100.57 100.00 301794.27 13.75 1892306.30
Subtotal of portfolio 2194100.57 100.00 301794.27 13.75 1892306.30
Total 2194100.57 100.00 301794.27 13.75 1892306.30
Provision set aside for bad debts of contract assets by portfolio
Ending balance
Name Provision for bad Provision percentage
Book balance
debts (%)
Within 1 year
1-2 years 660310.39 66163.10 10.02
2-3 years 1533790.18 348016.99 22.69
127Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance
Name Provision for bad Provision percentage
Book balance
debts (%)
Total 2194100.57 414180.09 18.88
(Continued)
Beginning balance
Name Provision for bad Provision percentage
Book balance
debts (%)
Within 1 year 561956.93 11463.92 2.04
1-2 years 631436.80 63269.97 10.02
2-3 years 1000706.84 227060.38 22.69
Total 2194100.57 301794.27 13.75
(3) Provision for bad debts accrued recovered or reversed for the current period
Changes in the current period
Write-off/
Recovered cancellation
Beginning or reversed after Ending
Item Current period Others Reason
Balance for the verification Balance
Provision Change
current for the
period current
period
112385.82 414180.09 Normal
Warranty 301794.27
provision
Total 301794.27 112385.82 414180.09
(4).Actual write-off of contract assets for the current period
There were no contract assets actually written off in the current period.
6. Receivables financing
Item Ending balance Beginning balance
Notes receivable 95040616.25 155957556.43
Total 95040616.25 155957556.43
128Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
7. Other receivables
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 947515719.09 942267792.91
Total 947515719.09 942267792.91
(1) Classification of other receivables by nature
Nature of funds Ending book balance Beginning book balance
Deposit and margin 360196852.73 333603706.26
Intercourse funds among minority
shareholders in the business
173714171.72173714171.72
consolidation not under the same
control and related parties
Energy-saving subsidies receivable 152399342.00 152399342.00
Intercourse funds with related parties 3691631889.48 3691383944.24
Others 995408985.51 1022177199.12
Total 5373351241.44 5373278363.34
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 1495441812.42 1467251543.63
1-2 years 351616659.98 348839519.04
2-3 years 190635638.22 204016070.83
3-4 years 88259481.31 110032898.45
4-5 years 386439326.34 670561586.84
Over 5 years 2860958323.17 2572576744.55
Total 5373351241.44 5373278363.34
(3) Classified presentation of other receivables by provisioning methods of bad debts
Ending balance
Type
Book balance Provision for bad debts Book value
129Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 4940834493.88 91.95 4206675772.05 85.14 734158721.83
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 189202997.43 3.52 156638249.42 82.79 32564748.01
Low-Risk Portfolio 243313750.13 4.53 62521500.88 25.70 180792249.25
Subtotal of portfolio 432516747.56 8.05 219159750.30 50.67 213356997.26
Total 5373351241.44 100.00 4425835522.35 82.37 947515719.09
(Continued)
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for bad
4975343588.3892.594221263474.9584.84754080113.43
debts by the single item
Provision set aside for bad
debts by portfolio
Of which: Aging portfolio 174594933.66 3.25 155935224.70 89.31 18659708.96
Low-Risk Portfolio 223339841.30 4.16 53811870.78 24.09 169527970.52
Subtotal of portfolio 397934774.96 7.41 209747095.48 52.71 188187679.48
Total 5373278363.34 100.00 4431010570.43 82.46 942267792.91
1） Provision set aside for bad debts of other receivables by portfolio
Ending balance
Aging Provision for bad Provision
Book balance
debts percentage (%)
Within 1 year 59178138.81 850072.98 1.44
1-2 years 113359793.29 3816034.22 3.37
2-3 years 7165515.09 1179013.39 16.45
130Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance
Aging Provision for bad Provision
Book balance
debts percentage (%)
3-4 years 31357650.00 9546499.07 30.44
4-5 years 37256422.74 19568903.01 52.52
Over 5 years 184199227.63 184199227.63 100.00
Total 432516747.56 219159750.30 50.67
2） Provision set aside for bad debts of other receivables by the general expected credit loss
model
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Expected credit during the whole during the whole
Provision for bad debts Total
loss for the next outstanding maturity outstanding maturity
12 months (without credit (with credit
impairment) impairment)
Balance as of January 1
455455.39209291640.094221263474.954431010570.43
2026
Balance as of January 1
2026 in the current period
-- Transfer to Stage II -1195101.69 1195101.69
-- Transfer to Stage III
-- Reversal to Stage II
-- Reversal to Stage I
Provision for the current
1589719.308045078.264720927.8014355725.36
period
Reversal in this period
Charge-off in the current
period
Write-off in the current
period
Other changes -222142.74 -19308630.70 -19530773.44
Balance as of June 30
850073.00218309677.304206675772.054425835522.35
2026
Remarks: 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
131Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
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.
(4) Provision for bad debts accrued recovered or reversed for the current period
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of other
4431010570.4314355725.36
receivables
Total 4431010570.43 14355725.36
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of other
-19530773.444425835522.35
receivables
Total -19530773.44 4425835522.35
Remarks: The amount of other changes during the current period includes a decrease of RMB
19530773.44 resulting from foreign exchange rate movements.
(5) Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
(6) Other receivables of the top five ending balances collected by debtor
The total amount of other receivables with top five ending balance categorized by debtors in the curre
nt period was RMB 3375742641.27 accounting for 62.82% of the total ending balance of other recei
vables. The total ending balance of provision for bad debts correspondingly set aside was RMB 2966
580596.02.
132Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
8. Advances to suppliers
(1) Advances to suppliers are listed by aging
Ending balance Beginning balance
Item
Amount Percentage (%) Amount Percentage (%)
Within 1 year 36158824.66 89.30 43005753.50 44.75
1-2 years 2966776.15 7.33 52405587.00 54.53
2-3 years 755481.96 1.87 122638.58 0.13
Over 3 years 610254.17 1.50 571760.52 0.59
Total 40491336.94 100.00 96105739.60 100.00
Remarks: The amount of advances to suppliers of the Group aged over one year at the end of the
period was RMB 4332512.28 accounting for 10.70% of the total ending balance of advances to
suppliers which are mainly unreceived goods or unsettled payments.
(2) Advances to suppliers status of the top five year-end balances collected by prepaid objects
The total amount of the top five advances to suppliers in the ending balance categorized by payees in
the current period was RMB 26809853.77 accounting for 66.21% of the total ending balance of
advances to suppliers.
9. Inventories
(1) Inventories Classification
Ending balance
Item
Book balance Provision for impairment Book value
Raw materials 522460235.37 147392207.13 375068028.24
Semi-finished products 105620729.21 61062868.77 44557860.44
Commodities in stock 1701282761.31 819837791.49 881444969.82
Commissioned products
Development costs 33007613.87 13632674.11 19374939.76
Development products 192836422.71 38429041.00 154407381.71
Total 2555207762.47 1080354582.50 1474853179.97
(Continued)
Beginning balance
Item
Book balance Provision for impairment Book value
133Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Beginning balance
Item
Book balance Provision for impairment Book value
Raw materials 535044975.99 161547556.59 373497419.40
Semi-finished products 110173191.36 61564204.04 48608987.32
Commodities in stock 1946864898.54 893886141.81 1052978756.73
Commissioned products 1248253.88 1248253.88
Development costs 30197755.10 13632674.11 16565080.99
Development products 207777173.26 38429041.00 169348132.26
Total 2831306248.13 1169059617.55 1662246630.58
(2) Provision for inventory depreciation
Increase in the current period
Item Beginning balance
Provision or reversal Others
Raw materials 161547556.59 -1648753.00
Semi-finished products 61564204.04 1243646.28
Commodities in stock 893886141.81 35003356.74
Commissioned products
Development costs 13632674.11
Development products 38429041.00
Total 1169059617.55 34598250.02
(Continued)
Decrease in the current period
Item Ending balance
Charge-off Others
Raw materials 9890562.32 2616034.14 147392207.13
Semi-finished products 1727538.32 17443.23 61062868.77
Commodities in stock 79906408.22 29145298.84 819837791.49
Commissioned products
Development costs 13632674.11
Development products 38429041.00
Total 91524508.86 31778776.21 1080354582.50
Note: Other decreases for the year were due to exchange rate movements.Specific basis for determining the realizable net value and reasons for reversal or write-off of the
134Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
provision for inventory depreciation and impairment provision for contract performance costs during
the current period:
Reasons for write-off of provision for
Specific basis for provision for inventory
Item inventory depreciation in the current
depreciation
period
The realizable net value was lower than the
Raw materials Sold or used in the current period
book value
The realizable net value was lower than the
Semi-finished products Sold or used in the current period
book value
The realizable net value was lower than the
Commodities in stock Sold in the current period
book value
The realizable net value was lower than the
Development products Sold in the current year
book value
10. Other current assets
Item Ending balance Beginning balance
Prepayments and deductible taxes and refund of
580922395.67619195913.75
tax for export receivable
Principal and interests of entrusted loans to
242633579.39235601218.08
associated enterprises
Deferred expenses 7392006.38 14313545.63
Cost of goods returned receivable 6451881.10 10287129.13
Others 395607.16 434578.55
Less: Impairment provision for other current assets 118264443.38 118264443.38
Total 719531026.32 761567941.76
135Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
11. Other equity instrument investments
(1) Other equity instrument investments
Increase/decrease in this period Divide
Gains Reason for
nd Losses
accumulated assigning to
income accumulated
Gains Losses into other measure at fair
Addit Decre recogn into other
Beginning included in included in comprehensi value of which
Item ional ase in Oth Ending balance ized comprehensive
balance other other ve income at changes included
inves invest ers during income at the
comprehensi comprehensi the end of the other
tment ment the end of the
ve income ve income current comprehensive
current current period
period income
period
Beijing Huyu Long-term holding
Entertainment Digital 6000000.00 based on strategic
Technology Co. Ltd. purpose
Long-term holding
Feihong Electronics
1300000.00 based on strategic
Co. Ltd.purpose
Shenzhen
Long-term holding
Association of
100000.00 based on strategic
Enterprises with
purpose
Foreign Investment
Shenzhen Chuangce Long-term holding
Investment 485000.00 based on strategic
Development Co. purpose
136Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period Divide
Gains Reason for
nd Losses
accumulated assigning to
income accumulated
Gains Losses into other measure at fair
Addit Decre recogn into other
Beginning included in included in comprehensi value of which
Item ional ase in Oth Ending balance ized comprehensive
balance other other ve income at changes included
inves invest ers during income at the
comprehensi comprehensi the end of the other
tment ment the end of the
ve income ve income current comprehensive
current current period
period income
period
Ltd.Shenzhen Tianyilian Long-term holding
Science & 4800000.00 based on strategic
Technology Co. Ltd. purpose
Shanlian Information
Long-term holding
Technology
1860809.20 1860809.20 3139190.80 based on strategic
Engineering Center
purpose
Co. Ltd.Shenzhen CIU Long-term holding
Science & 953000.00 953000.00 200000.00 based on strategic
Technology Co. Ltd. purpose
Shanghai National
Long-term holding
Engineering
2400000.00 2400000.00 based on strategic
Research Center of
purpose
Digital TV Co. Ltd.Guangdong Bohua Long-term holding
5000001.005000001.00
Ultra High Definition based on strategic
137Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period Divide
Gains Reason for
nd Losses
accumulated assigning to
income accumulated
Gains Losses into other measure at fair
Addit Decre recogn into other
Beginning included in included in comprehensi value of which
Item ional ase in Oth Ending balance ized comprehensive
balance other other ve income at changes included
inves invest ers during income at the
comprehensi comprehensi the end of the other
tment ment the end of the
ve income ve income current comprehensive
current current period
period income
period
Innovation Center purpose
Co. Ltd.Total 10213810.20 10213810.20 16024190.80
(2) Derecognition in the current period
During the Reporting Period the Group had no derecognition of other equity instrument investments.
138Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
12、Long-term equity investments
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Associates:
Kangkong Venture Capital (Shenzhen) Co. Ltd. 5180793.01 -69352.93
Nanjing Zhihuiguang Information Technology
2017886.1930133.79
Research Institute Co. Ltd.Feidi Technology (Shenzhen) Co. Ltd. 21415487.46 12000000.00 2036425.18
Shenzhen Kangyue Industrial Co. Ltd. 24977328.88
Kangkai Technology Service (Chengdu) Co.
81113.09
Ltd.Puchuang Jiakang Technology Co. Ltd. 6297491.71 216147.50
Shenzhen Jielunte Technology Co. Ltd. 80165191.30 -4702155.99
Orient Excellent (Zhuhai) Asset Management
8616183.96-136000.00
Co. Ltd.Oriental Jiakang No. 1 (Zhuhai) Private Equity
164890885.04-159840.00
Investment Fund (Limited Partnership)
Tongxiang Wuzhen Kunyu Venture Capital Co.
3530017.06
Ltd.Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co. Ltd. 26987982.96 447882708.28 -3085702.70
139Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Kunshan Kangsheng Investment Development
73270834.48-3371200.00
Co. Ltd.Shaanxi Silk Road Yunqi Intelligent Technology
152670.80-113422.50
Co. Ltd.Shenzhen Kanghongxing Intelligent Technology
12660222.73
Co. Ltd.Shenzhen Zhongkang Beidou Technology Co.Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Chuzhou Konka Technology Industry
24293066.22
Development Co. Ltd.Chuzhou Kangjin Health Industrial Development
162873657.63-1974700.00
Co. Ltd.Nantong Konka Technology Industrial Park
68800523.55
Operation Management Co. Ltd.Chuzhou Kangxin Health Industry Development
176837544.74
Co. Ltd.Dongguan Guankang Yuhong Investment Co.
457019657.61
Ltd.Shenzhen Morsemi Semiconductor Technology
140Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Co. Ltd.Econ Technology 718478701.02 471120597.05 -1257918.18
Dongguan Kangjia New Materials Technology
4908736.25
Co. Ltd.Chongqing ypfun Technology Co. Ltd. 474346899.10 1968503947.36
Yantai Kangyun Industrial Development Co. Ltd.E3 (Hainan) Technology Co. Ltd. 14000000.00
Shenzhen Kangjia Jiapin Intelligent Electrical
2448605.88-445859.65
Apparatus Technology Co. Ltd.Shenzhen KONKA E-display Co. Ltd. 97221710.07 1575000.00
Chongqing Yuanlv Benpao Real Estate Co. Ltd. 25740000.00
Shenzhen Kangpeng Digital Technology Co.
980300.31-800.00
Ltd.Yantai Kangtang Construction Development Co.
1123420.70-20953.92
Ltd.Dongguan Konka Smart Electronic Technology
13484252.90-1587600.00
Co. Ltd.Beijing Konka Jingyuan Technology Co. Ltd. 621527.36 -9690.00
Chongqing Liangshan Enterprise Management
310307.48
Co. Ltd.
141Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Shenzhen Kangxi Technology Innovation
1050893.4420614.71
Development Co. Ltd.Shandong Kangfei Intelligent Electrical
245911.63
Appliances Co. Ltd.Guangdong Kangyuan Semiconductor Co. Ltd. 6001292.24 306035.64
Chongqing Kangyiqing Technology Co. Ltd. 145424.39 -82142.95
Zhejiang Kangying Semiconductor Technology
32126636.38409000000.00
Co. Ltd.KK Smartech Limited 1601969.45 -29791.27
Chongqing Kangjian Photoelectric Technology
Co. Ltd.Anhui Kangta Supply Chain Management Co.
16548557.5616460999.37-87558.19
Ltd.Wuhan Kangtang Information Technology Co.
977229.62206236.16
Ltd.Sichuan Chengrui Real Estate Co. Ltd. 22357187.48
Jiakang Industrial Development (Wuhan) Co.
37867228.83
Ltd.Hefei KONSEMI Storage Technology Co. Ltd. 102019381.83 32109693.84
Sichuan Hongxinchen Real Estate Development 53934595.60
142Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease in investment other
(Book value) Beginning
investment investment recognized by the comprehensive
balance
equity method income
Co. Ltd.Konka Huanjia Environmental Technology Co.
91800000.00
Ltd.Kangrong Jiayuan Technology (Zhejiang) Co.
1070852.57-80900.00
Ltd.Total 2026038156.99 4203164752.91 28460999.37 428284698.54
Increase/decrease in this period
Cash
dividends or
Provision Ending balance Provision for impairment
Investee Changes in profits
for Others (Book value) Ending balance
Other Equities declared to
impairment
be
distributed
Associates:
Kangkong Venture Capital (Shenzhen) Co.
5111440.08
Ltd.Nanjing Zhihuiguang Information
2048019.98
Technology Research Institute Co. Ltd.Feidi Technology (Shenzhen) Co. Ltd. -1343802.29 10108110.35
143Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shenzhen Kangyue Industrial Co. Ltd. 24977328.88
Kangkai Technology Service (Chengdu)
81113.09
Co. Ltd.Puchuang Jiakang Technology Co. Ltd. 6513639.21
Shenzhen Jielunte Technology Co. Ltd. 75463035.31
Orient Excellent (Zhuhai) Asset
8480183.96
Management Co. Ltd.Oriental Jiakang No. 1 (Zhuhai) Private
Equity Investment Fund (Limited 164731045.04
Partnership)
Tongxiang Wuzhen Kunyu Venture Capital
3530017.06
Co. Ltd.Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co. Ltd. 23902280.26 447882708.28
Kunshan Kangsheng Investment
69899634.48
Development Co. Ltd.Shaanxi Silk Road Yunqi Intelligent
39248.30
Technology Co. Ltd.Shenzhen Kanghongxing Intelligent
12660222.73
Technology Co. Ltd.Shenzhen Zhongkang Beidou Technology
Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Chuzhou Konka Technology Industry
24293066.22
Development Co. Ltd.
144Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Chuzhou Kangjin Health Industrial
160898957.63
Development Co. Ltd.Nantong Konka Technology Industrial Park
68800523.55
Operation Management Co. Ltd.Chuzhou Kangxin Health Industry
176837544.74
Development Co. Ltd.Dongguan Guankang Yuhong Investment
457019657.61
Co. Ltd.Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Econ Technology 717220782.84 471120597.05
Dongguan Kangjia New Materials
4908736.25
Technology Co. Ltd.Chongqing ypfun Technology Co. Ltd. -586270.19 473760628.91 1968503947.36
Yantai Kangyun Industrial Development
Co. Ltd.E3 (Hainan) Technology Co. Ltd. 14000000.00
Shenzhen Kangjia Jiapin Intelligent
2002746.23
Electrical Apparatus Technology Co. Ltd.Shenzhen KONKA E-display Co. Ltd. 98796710.07
Chongqing Yuanlv Benpao Real Estate
25740000.00
Co. Ltd.Shenzhen Kangpeng Digital Technology
979500.31
Co. Ltd.Yantai Kangtang Construction 1102466.78
145Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Development Co. Ltd.Dongguan Konka Smart Electronic
11896652.90
Technology Co. Ltd.Beijing Konka Jingyuan Technology Co.
611837.36
Ltd.Chongqing Liangshan Enterprise
310307.48
Management Co. Ltd.Shenzhen Kangxi Technology Innovation
1071508.15
Development Co. Ltd.Shandong Kangfei Intelligent Electrical
245911.63
Appliances Co. Ltd.Guangdong Kangyuan Semiconductor Co.
6307327.88
Ltd.Chongqing Kangyiqing Technology Co.
63281.44
Ltd.Zhejiang Kangying Semiconductor
441126636.38
Technology Co. Ltd.KK Smartech Limited 1572178.18
Chongqing Kangjian Photoelectric
Technology Co. Ltd.Anhui Kangta Supply Chain Management
Co. Ltd.Wuhan Kangtang Information Technology
1183465.78
Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd. 22357187.48
146Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Jiakang Industrial Development (Wuhan)
37867228.83
Co. Ltd.Hefei KONSEMI Storage Technology Co.
134129075.67
Ltd.Sichuan Hongxinchen Real Estate
53934595.60
Development Co. Ltd.Konka Huanjia Environmental Technology
91800000.00
Co. Ltd.Kangrong Jiayuan Technology (Zhejiang)
989952.57
Co. Ltd.Total -1930072.48 2423931783.68 4203164752.91
13. Other non-current financial assets
Item Ending balance Beginning balance
Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership (Limited Partnership) 93030890.40 119414203.99
China Asset Management-Jiayi Overseas Designated Plan 200732067.00 200732067.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment Partnership (Limited
108092581.71178532220.44
Partnership)
Yibin OCT Sanjiang Properties Co. Ltd. 174770775.80 175054364.03
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited Partnership) 122593706.14 145591716.60
Yancheng Kangyan Information Industry Investment Partnership (Limited Partnership) 135767513.50 135763664.30
Daye Trust - Hui Libao No. 19
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 300000.00 300000.00
147Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
Yibin Kanghui Electronic Information Industry Equity Investment Partnership (Limited Partnership) 58967986.53 58967986.53
Chuzhou Jiachen Information Technology Consulting Service Partnership (Limited Partnership)
Tianjin Property No. 8 Enterprise Management Partnership (Limited Partnership)
Tianjin Huacheng Property Development Co. Ltd. 1000000.00 1000000.00
Shenzhen Kanghuijia Technology Co. Ltd. 1033.45
Subtotal of equity investments 895255521.08 1015357256.34
Shenzhen Gaohong Enterprise Consulting Management Partnership (Limited Partnership) 120874956.69 120874956.69
Nanjing Kangfeng Dejia Asset Management Partnership (Limited Partnership)
Shenzhen Zitang No.1 Enterprise Consulting Management Partnership (Limited Partnership)
Shenzhen Beihu Technology Partnership (Limited Partnership) 15000000.00 15000000.00
Xi'an Bihuijia Enterprise Management Consulting Partnership (Limited Partnership) 7520520.00 7520520.00
Shanxi Kangmengrong Enterprise Management Consulting Partnership (Limited Partnership) 3028480.00 3028480.00
Subtotal of debt investments 146423956.69 146423956.69
Total 1041679477.77 1161781213.03
14. Investment properties
（1） Investment properties measured at cost
Item Properties and buildings Land use right Total
I. Original book value
1. Beginning balance 1687296692.92 97210555.38 1784507248.30
2. Increase in the current period 121317082.21 121317082.21
(1) Purchase
148Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Properties and buildings Land use right Total
(2) Transfer-in of inventories\fixed assets\construction in
121317082.21121317082.21
progress\intangible assets
3. Decrease in the current period 146226.41 146226.41
(1) Disposal
(2) Other transfer-out 146226.41 146226.41
4. Ending balance 1808467548.72 97210555.38 1905678104.10
II. Accumulated depreciation and accumulated
amortization
1. Beginning balance 248117196.61 26695654.78 274812851.39
2. Increase in the current period 26161647.22 698664.19 26860311.41
(1) Provision or amortization 18620156.11 698664.19 19318820.30
(2) Other transfer-in 7541491.11 7541491.11
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 274278843.83 27394318.97 301673162.80
III. Provision for impairment
1. Beginning balance 602125392.90 41517528.88 643642921.78
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
149Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Properties and buildings Land use right Total
4. Ending balance 602125392.90 41517528.88 643642921.78
IV. Book value -
1. Book value as at the end of the period 932063311.99 28298707.53 960362019.52
2. Book value as at the beginning of the period 837054103.41 28997371.72 866051475.13
（2） Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the current period.
（3） Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
（4） Investment property converted and measured at fair value in the current period
There was no investment property converted and measured at fair value in the current period.
（5） Investment properties for which property right certificates have not yet been issued
Reason that the certificate of title was not
Item Book value
completed
Suining Konka Electronic Product Standard Factory Project 62882039.64 The completion filing has not yet been processedfor the project
Houses and buildings of Xi'an Kanghong 87818314.86 In progress
Yantai Kangjin's properties and buildings 18957342.60 In progress
（6） Investment properties with restricted ownership or use right
Item Book value Reasons for restriction
Guangming Technology Center 319027884.81 As collateral for loan
Houses and buildings of Xi'an Kanghong 87818314.86 As collateral for loan
Houses and buildings of Nantong Kanghai 56307870.19 As collateral for loan
150Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Book value Reasons for restriction
Properties and buildings of Shanxi Konka Intelligent 35479438.81 As collateral for loan
Total 498633508.67
15. Fixed assets
Item Ending balance Beginning balance
Fixed assets 4158003825.17 4405958959.37
Liquidation of fixed assets
Total 4158003825.17 4405958959.37
151Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
（1） Fixed assets
Properties and Electronic Transportation Other equipment
Item Machinery equipment Total
buildings equipment vehicle
I. Original book value
1. Beginning balance 4016044214.07 3485808298.50 294035532.36 48465154.70 188973460.14 8033326659.77
2. Increase in the current period 143022.99 12321711.11 2403524.59 65486.74 1165917.62 16099663.05
(1) Purchase 10858082.78 1659260.87 26548.69 459722.93 13003615.27
(2) Transfer-in of construction in
1463628.33744263.7238938.05706194.692953024.79
progress
(3) Other increase 143022.99 143022.99
3. Decrease in the current
121424791.4211847249.962014047.42544554.431396827.48137227470.71
period
(1) Disposal or write-off 11847249.96 1991256.53 544031.91 1395380.69 15777919.09
(2) Decrease for loss of
controlling right
(3) Other decreases 121424791.42 22790.89 522.52 1446.79 121449551.62
4. Ending balance 3894762445.64 3486282759.65 294425009.53 47986087.01 188742550.28 7912198852.11
II. Accumulated depreciation
1. Beginning balance 914386095.30 1755585831.33 229590503.11 39457477.64 143262472.27 3082282379.65
2. Increase in the current period 45318637.68 89096594.89 8222379.07 948008.62 4696605.42 148282225.68
(1) Provision 45318637.68 89096594.89 8016980.74 948008.62 4496516.95 147876738.88
152Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Properties and Electronic Transportation Other equipment
Item Machinery equipment Total
buildings equipment vehicle
(2) Other increase 205398.33 200088.47 405486.80
3. Decrease in the current
7541491.1110234746.181652086.15381239.771117001.5720926564.78
period
(1) Disposal or write-off 10234746.18 1631567.08 380769.49 1115699.46 13362782.21
(2) Decrease for loss of
controlling right
(3) Other decreases 7541491.11 20519.07 470.28 1302.11 7563782.57
4. Ending balance 952163241.87 1834447680.04 236160796.03 40024246.49 146842076.12 3209638040.55
III. Provision for impairment
1. Beginning balance 172108417.28 355999298.32 3439981.55 1939494.74 11598128.86 545085320.75
2. Increase in the current period 30763.46 30763.46
(1) Provision 30763.46 30763.46
(2) Other increase
3. Decrease in the current
441455.1116365.48101277.23559097.82
period
(1) Disposal or write-off 441455.11 16365.48 101277.23 559097.82
(2) Decrease for loss of
controlling right
(3) Other decreases
153Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Properties and Electronic Transportation Other equipment
Item Machinery equipment Total
buildings equipment vehicle
4. Ending balance 172108417.28 355588606.67 3423616.07 1939494.74 11496851.63 544556986.39
IV. Book value
1. Book value as at the end of
2770490786.491296246472.9454840597.436022345.7830403622.534158003825.17
the period
2. Book value as at the
2929549701.491374223168.8561005047.707068182.3234112859.014405958959.37
beginning of the period
154Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(2) Temporarily idle fixed assets
Accumulated Provision for
Item Original book value Book value
depreciation impairment
Housing and
366591016.05223101644.17106439814.2537049557.63
building
Machinery
1117378372.15752918437.33319891131.9244568802.90
equipment
Electronic
19736058.5017694023.191416391.94625643.37
equipment
Transportation
5000209.004551214.62177480.03271514.35
vehicle
Other equipment 36288637.87 32479724.01 3450958.92 357954.94
Total 1544994293.57 1030745043.32 431375777.06 82873473.19
(3)Fixed assets leased out through operating leases
Item Ending book value
Housing and building 130490724.77
Machinery equipment 2004486.58
Electronic equipment 139076.29
Transportation vehicle 312.63
Other equipment 158932.12
Total 132793532.39
(4) Fixed assets without certificate of title
Reason that the certificate
Item Book value
of title was not completed
Fenggang Konka Smart TV
400044150.32 In progress
Project
Anhui Konka's properties and
160403447.57 In progress
buildings
Standard electronic product The completion filing has not
139460909.69 yet been processed for the
plants in Sunning project
Yikang Building property 30225446.45 In progress
Frestec Smart Home
18800908.47 In progress
properties and buildings
(5) Fixed assets with restricted ownership or use right
Item Ending book value Reasons for restriction
155Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Ending book value Reasons for restriction
Anhui Konka's properties and buildings 564357471.78 As collateral for loan
Properties and buildings of Shanxi Konka
275467943.43 As collateral for loan
Intelligent
Buildings and machinery and equipment
226623748.38 As collateral for loan
of Frestec Smart Home
Buildings of Chongqing Konka 171758947.82 As collateral for loan
Buildings of Anhui Tongchuang 127953305.69 Mortgage for invoicing
Properties and buildings of Frestec
68271535.12 As collateral for loan
Refrigeration
Buildings of Konka Group 48673311.68 As collateral for loan
Buildings of Jiangsu Konka Smart 28831239.76 As collateral for loan
Housing and buildings of XingDa HongYe 22477360.51 As collateral for loan
Machinery equipment of Xinfeng As collateral for finance
183690.00
Microcrystalline lease
Housing and buildings of Jiangxi Konka Original shareholder
717464.48
guarantee mortgage
Machinery and equipment of Bokang
80497.40 Litigation involved
Precision
Total 1535396516.05
156Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
16. Construction in progress
（1） Construction in progress
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Jiangxi High-permeability Crystalisation Kiln 246576748.57 245645748.57 931000.00 246576748.57 245645748.57 931000.00
Construction of Suining Electronic Industrial Park
159521528.4079545109.4079976419.00
Workshops 159579630.91 79545109.40 80034521.51
Suining Konka Hongye Plant Decoration Project 119865611.74 119865611.74 119870565.87 119870565.87
Production Line Renovation Project of Jiangxi
77761891.8571639231.856122660.00
Konka 77761891.85 71639231.85 6122660.00
Construction and Decoration Project of Phase I of
Dongguan Konka Science and Technology 41073754.17 41073754.17 41073754.17 41073754.17
Industrial Park
Other projects 354108174.06 84469891.23 269638282.83 352832974.12 84469891.23 268363082.89
Total 998965811.30 481299981.05 517665830.25 997637462.98 481299981.05 516337481.93
（2） Changes of significant construction in progress in the current period
Name Beginning Increase in the Decrease in the current period Ending balance
balance current period
157Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Transfer to fixed
Other decreases
assets
Construction of Suining Electronic Industrial Park Workshops 159521528.40 58102.51 159579630.91
Suining Konka Hongye Plant Decoration Project 119870565.87 4954.13 119865611.74
Total 279392094.27 58102.51 4954.13 279445242.65
(Continued)
Including: Capitalization
Proportion of the Accumulated
Capitalized rate of the
Budget amount (RMB project Engineering amount of Source of
Name amount of interests for the
ten thousand yuan) accumulative input Schedule (%) interest funds
interest in the current period
in budget (%) capitalization
current period (%)
Construction of Suining Electronic
76342.22 95 95 Self-funded
Industrial Park Workshops
Suining Konka Hongye Plant Own funds
Decoration Project 13774.10 87 87 and bank
loans
Total 90116.32
（3） Provision for impairment of construction in progress in the current period
Increase in the current Decrease in the
Type Beginning balance Ending balance Reason for withdrawal
period current period
158Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase in the current Decrease in the
Type Beginning balance Ending balance Reason for withdrawal
period current period
Work has been suspended
Jiangxi High-permeability
245645748.57 and there are no future
Crystallisation Kiln Project
245645748.57 development plans
Work has been suspended
Jiangxi High-permeability Substrate
51511747.18 and there are no future
Production Line Project
51511747.18 development plans
Work has been suspended
Jiangxi Konka Production Line
71639231.85 and there are no future
Renovation Project
71639231.85 development plans
Work has been suspended
Suining Konka Flexible FPC Plant
32860823.52 and there are no future
Equipment Installation
32860823.52 development plans
Construction of Suining Electronic
79545109.40 Not yet ready for use
Industrial Park Workshops 79545109.40
Work has been suspended
Other projects 97320.53 97320.53 and there are no future
development plans
Total 481299981.05 481299981.05
159Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
17. Right-of-use assets
Properties and buildings Machinery equipment Electronic
Item Total
equipment
I. Original book value
1. Beginning balance 269612023.77 3306925.92 696991.19 273615940.88
2. Increase in the current
1556922.371556922.37
period
(1) Leased-in 1556922.37 1556922.37
(2) Others
3. Decrease in the current
44546886.6444546886.64
period
(1) Decrease for loss of
controlling right
(2) Others 44546886.64 44546886.64
4. Ending balance 226622059.50 3306925.92 696991.19 230625976.61
II. Accumulated depreciation
1. Beginning balance 142417419.72 846102.92 275873.41 143539396.05
2. Increase in the current
22610974.70500088.8288699.7523199763.27
period
(1) Provision 22610974.70 500088.82 88699.75 23199763.27
160Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Properties and buildings Machinery equipment Electronic
Item Total
equipment
(2) Others
3. Decrease in the current
39733154.9739733154.97
period
(1) Decrease for loss of
controlling right
(2) Others 39733154.97 39733154.97
4. Ending balance 125295239.45 1346191.74 364573.16 127006004.35
III. Provision for impairment
1. Beginning balance
2. Increase in the current
period
(1) Provision
3. Decrease in the current
period
(1) Disposal
4. Ending balance
IV. Book value
1. Book value as at the end
101326820.051960734.18332418.03103619972.26
of the period
161Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Properties and buildings Machinery equipment Electronic
Item Total
equipment
2. Book value as at the
127194604.052460823.00421117.78130076544.83
beginning of the period
Remarks: The other decreases in original value and accumulated depreciation are mainly due to the termination of leases.
18. Intangible assets
（1） List of intangible assets
Trademark Right to use software
Item Land use right Patent and know-how Franchise rights Total
rights and others
I. Original book value
1. Beginning balance 811294889.02 72197456.33 108280566.04 192973407.81 171295870.42 1356042189.62
2. Increase in the current period 206303.13 206303.13
(1) Purchase 206303.13 206303.13
(2) Transfer-in of construction in
progress
(3) Other reasons
3. Decrease in the current period 2791512.02 2791512.02
(1) Disposal or write-off 2785091.01 2785091.01
(2) Other reasons 6421.01 6421.01
162Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Trademark Right to use software
Item Land use right Patent and know-how Franchise rights Total
rights and others
4. Ending balance 811294889.02 72197456.33 108280566.04 192973407.81 168710661.53 1353456980.73
II. Accumulated amortization
1. Beginning balance 123811902.10 27582658.39 66102527.03 33012217.26 121220389.80 371729694.58
2. Increase in the current period 8045274.87 2081757.98 21600.00 135876.11 5085032.49 15369541.45
(1) Provision 8045274.87 2081757.98 21600.00 135876.11 5085032.49 15369541.45
(2) Other reasons
3. Decrease in the current period 2603284.23 2603284.23
(1) Disposal or write-off 2600610.87 2600610.87
(2) Other reasons 2673.36 2673.36
4. Ending balance 131857176.97 29664416.37 66124127.03 33148093.37 123702138.06 384495951.80
III. Provision for impairment
1. Beginning balance 13304591.99 564705.88 42042439.01 155930200.00 238599.64 212080536.52
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Ending balance 13304591.99 564705.88 42042439.01 155930200.00 238599.64 212080536.52
163Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Trademark Right to use software
Item Land use right Patent and know-how Franchise rights Total
rights and others
IV. Book value
1. Book value as at the end of the
666133120.0641968334.08114000.003895114.4444769923.83756880492.41
period
2. Book value as at the beginning
674178394.9344050092.06135600.004030990.5549836880.98772231958.52
of the period
164Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
（2） Details of land use right without certificate of title
The Group did not have land use rights for which no title deeds had been issued.
（3） Significant intangible assets
Remaining amortization period
Item Ending book value
(year)
Land use right of Dongguan Konka 175659152.67 43.17
Land use right of Shanxi Konka Intelligent 108443575.29 45.08
Land use right of Frestec Smart Home 85440790.85 44.25
Total 369543518.81
（4） Intangible assets with restricted ownership or use right
Item Ending book value Reasons for restriction
Land use right of Dongguan Konka 175659152.67 As collateral for loan
Land use right of Shanxi Konka Intelligent 108443575.29 As collateral for loan
Land use right of Frestec Refrigeration 58967091.22 As collateral for loan
Land use right of Anhui Konka 50873316.00 As collateral for loan
Land use right of Chongqing Konka 16438690.50 As collateral for loan
Land use right of Anhui Tongchuang 16232513.95 As collateral for loan
Land use right of Jiangsu Konka Smart 12569664.89 As collateral for loan
Land use right of Xingda Hongye 11941907.80 As collateral for loan
Land use right of Konka Guangming
3443531.24 As collateral for loan
Technology Center
Total 454569443.56
19. Goodwill
（1） Original Book Value of Goodwill
Increase in the current Decrease in the
period current period
Formed
Name of investee Beginning balance Ending balance
through
Others Disposal Others
business
combinations
Jiangxi Konka 340111933.01 340111933.01
Xingda Hongye 44156682.25 44156682.25
165Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase in the current Decrease in the
period current period
Formed
Name of investee Beginning balance Ending balance
through
Others Disposal Others
business
combinations
Total 384268615.26 384268615.26
（2） Provision for goodwill impairment
Increase in the current Decrease in the
Name of investee Beginning balance period current period Ending balance
Provision Others Disposal Others
Jiangxi Konka 340111933.01 340111933.01
Xingda Hongye 44156682.25 44156682.25
Total 384268615.26 384268615.26
20. Long-term deferred expenses
Other decreases
Increase in the Amortization in
Item Beginning balance in the current Ending balance
current period the current period
period
Decoration
242201004.252595509.7528193154.121197696.64
expenses 215405663.24
Shoppe
16535310.973785944.777549749.43
expense 12771506.31
Others 195225802.47 24297348.99 30420752.85 154078.48 188948320.13
Total 453962117.69 30678803.51 66163656.40 1351775.12 417125489.68
21. Deferred tax assets/deferred tax liabilities
（1） Deferred tax assets that have not been offset
Ending balance Beginning balance
Deductible Deductible
Item
temporary deferred tax assets temporary deferred tax assets
differences differences
Deductible losses 115149745.75 24141630.16 115441836.02 24185449.41
Provision for asset 49287141.11 11692507.95 33348876.81 7518088.66
166Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance Beginning balance
Deductible Deductible
Item
temporary deferred tax assets temporary deferred tax assets
differences differences
impairment
Deferred income 133428267.99 27530898.33 126029904.75 26299979.55
Accrued expenses 1408415.86 352103.97 79260.20 19815.05
Unrealized profit of
11338203.592834550.9023159179.995789795.00
internal transactions
Lease liabilities 163960811.19 40688933.79 128733917.69 31923273.77
Others 1966186.85 490899.50 47323319.31 11257154.20
Total 476538772.34 107731524.60 474116294.77 106993555.63
（2） Deferred tax liabilities that have not been offset
Ending balance Beginning balance
Item taxable temporary deferred tax taxable temporary deferred tax
differences liabilities differences liabilities
Estimated added value of
assets not under the same 128360039.55 28912483.52 131234455.38 28976378.21
control
Prepaid interest 8677666.72 2169416.68 16906513.97 4226628.50
Financial assets measured
at fair value through 120167573.52 30041893.38 165075229.25 41268807.31
current profit or loss
Right-of-use assets 105967380.23 26222119.03 125148918.49 31020361.63
Others 52050516.84 8651400.13 53694103.36 8982879.15
Total 415223176.86 95997312.74 492059220.45 114475054.80
（3） Breakdown of unrecognized deferred tax assets
Item Ending balance Beginning balance
Deductible losses 10118867239.92 10631764118.90
Deductible temporary differences 14993536548.14 14733642383.21
Total 25112403788.06 25365406502.11
（4） Deductible losses of unrecognized deferred tax assets matured/will mature in the
following year
167Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Year Ending amount Beginning amount
2026121564143.72403268956.95
2027771251909.491334876912.27
2028882632699.80980877535.65
20291265082971.231311131269.35
20301287649930.456601609444.68
2031 and beyond 5790685585.23
Total 10118867239.92 10631764118.90
22. Other non-current assets
Ending balance
Item Provision for
Book balance Book value
impairment
Prepayment for land purchase 1029457502.92 517841855.90 511615647.02
Prepayment for construction
equipment and other long-term 110715970.58 110715970.58
assets
Total 1140173473.50 517841855.90 622331617.60
(Continued)
Beginning balance
Item Provision for
Book balance Book value
impairment
Prepayment for land purchase 1029457502.92 517841855.90 511615647.02
Prepayment for construction
equipment and other long-term 89390490.57 89390490.57
assets
Total 1118847993.49 517841855.90 601006137.59
23. Assets with restrictions on the ownership or right of use
Ending
Item Type of
Book balance Book value Restriction details
restriction
Time Among them RMB 202348614.05 is
Monetary assets 812653044.81 812653044.81
deposit the margin deposit which is pledged
168Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending
Item Type of
Book balance Book value Restriction details
restriction
margins etc. for borrowing or issuing bank
acceptance bills; RMB 440277833.44
is a time deposit that cannot be
withdrawn in advance; RMB
170026597.32 was restricted due to
other reasons.Accounts
2694539.25 2636999.84 Pledge In pledge for loan
receivable
Inventories 179824601.36 149696486.22 Mortgage As collateral for loan
Investment
858014402.41 498633508.67 Mortgage As collateral for loan
properties
As collateral for finance lease loan
Fixed assets 2060863393.14 1535396516.05 Mortgage
and former shareholder guarantee
Intangible assets 567108433.14 454569443.56 Mortgage As collateral for loan
Total 4481158414.11 3453585999.15
(Continued)
Beginning
Item Type of
Book balance Book value Restriction details
restriction
Among them RMB
525901180.93 is the margin
deposits which is pledged for
borrowings or issuing bank
Margin time acceptance bills; RMB
Monetary assets 1293472374.79 1293472374.79 deposits 612670635.63 represents time
etc. deposits that are not available for
early withdrawal and are pledged
as collateral for borrowings; RMB
154900558.23 was restricted due
to other reasons.Accounts
1479824.68 1448244.31 Pledge In pledge for loan
receivable
Inventories 213889093.11 161827378.00 Mortgage As collateral for loan
169Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Beginning
Item Type of
Book balance Book value Restriction details
restriction
Investment
789216793.66 445326656.45 Mortgage As collateral for loan
properties
As collateral for finance lease
Fixed assets 2159388777.59 1619724502.81 Mortgage loan and former shareholder
guarantee
Intangible assets 567108433.14 486364529.83 Mortgage As collateral for loan
Total 5024555296.97 4008163686.19
24. Short-term borrowings
（1） Classification of short-term borrowings
Type of borrowings Ending balance Beginning balance
Unsecured loan 2056310788.93 3736619333.91
Guaranteed loan 98647583.30 449087810.41
As collateral for loan 317505916.65 390208408.34
Total 2472464288.88 4575915552.66
（2） Outstanding short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current period.
25. Notes payable
Type of note Ending balance Beginning balance
Bank Acceptance Bills 538889419.28 653949070.29
Trade Acceptance 200898675.06 289868697.62
Total 739788094.34 943817767.91
26. Accounts payable
（1） List of accounts payable
Item Ending balance Beginning balance
Within 1 year 1342651773.48 1392600370.15
1 to 2 years 123980816.13 252209408.86
170Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
2 to 3 years 52407893.81 130867724.12
Over 3 years 281500141.37 202058868.16
Total 1800540624.79 1977736371.29
（2） Significant accounts payable with aging over 1 year or overdue
Reason for non-repayment or
Unit Ending balance
carry-over
Company A 102759114.76 Pending settlement
76528489.81 Final payment for the project not yetCompany B settled
42192153.10 Final payment for the project not yetCompany C settled
Company D 32189624.82 Pending settlement
Company E 31236458.00 Pending settlement
Company F 30327400.00 In litigation
Company G 30159458.13 Pending settlement
Company H 10600000.00 Pending settlement
Total 355992698.62
27. Other payables
Item Ending balance Beginning balance
Interest payable
Dividends payable
Other payables 4345738069.13 6565100788.16
Total 4345738069.13 6565100788.16
（1） Other accounts payable presented based on the fund nature
Nature of funds Ending balance Beginning balance
Expenses payable 739356871.92 792764274.26
Security deposit down payment and
271001594.22272858608.90
deposit
Trading funds 1146021076.86 1163502426.04
Advance payment 3722771.30 3860617.67
Related party borrowing 200772321.14 2395873661.72
Equity payable 1907063594.47 1870346451.75
171Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Nature of funds Ending balance Beginning balance
Others 77799839.22 65894747.82
Total 4345738069.13 6565100788.16
（2） Significant other accounts payable with an age of more than one year or overdue
Reason for non-repayment or carry-
Unit Ending balance
over
Equity repurchase funds and interest
Company I 1469134969.86 under the IPO valuation adjustment
agreements of E3
Company J 227514913.68 Accrued patent fees
Company K 66082529.10 Pending settlement
Company L 65077215.48 Unsettled construction payments
Company M 30000000.00 Performance bond
Company N 20301936.47 Pending settlement
Company O 18000000.00 Pending settlement
Company P 13907467.86 Installment payments
Company Q 13618181.08 Payment conditions not met
Company R 12780275.13 Pending settlement
Total 1936417488.66
28. Advances from customers
Type Ending balance Beginning balance
Rent 3027128.01 3426361.65
Total 3027128.01 3426361.65
29. Contract liabilities
（1） Contract liabilities
Item Ending balance Beginning balance
Sales advances received 168122219.32 256506499.39
Total 168122219.32 256506499.39
Remarks: Contract liabilities over one year are detailed in Note "VIII. 41. Other Non-current Liabilities".
（2） Significant contract liabilities with an age of more than one year
172Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
There were no significant contract liabilities with an age of more than one year in the current period.
（3） Significant changes in book value in the current period
There were no significant changes in book value in the current period.
30. Employee compensation payable
（1） List of payrolls payable
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Short-term remuneration 212749450.64 509870191.40 526499070.40 196120571.64
Post-employment benefits-
1134850.7450704431.9649832864.272006418.43
defined contribution plans
Dismissal benefits 9291211.72 88455901.74 58240882.35 39506231.11
Total 223175513.10 649030525.10 634572817.02 237633221.18
（2） Short-term remuneration
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Salaries bonuses
206930190.03441981209.06459825368.23189086030.86
allowances and subsidies
Employee benefits 2571832.63 20718690.13 20260249.51 3030273.25
Social insurance premiums 534462.57 23840639.25 23773047.91 602053.91
Including: Medical
395544.5921036123.4721019776.09411891.97
insurance premiums
Work injury insurance
71524.892142572.662112565.31101532.24
premiums
Maternity insurance
67393.09661943.12640706.5188629.70
premiums
Housing fund 548265.52 18210798.43 17600553.86 1158510.09
Labour union funds and
2089059.124854010.494716293.202226776.41
education funds
Others 75640.77 264844.04 323557.69 16927.12
Total 212749450.64 509870191.40 526499070.40 196120571.64
（3） Defined contribution plans
173Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Basic endowment
1072475.7848713174.1548057972.831727677.10
management insurance
Unemployment insurance
62374.961991257.811774891.44278741.33
premiums
Total 1134850.74 50704431.96 49832864.27 2006418.43
31. Taxes payable
Item Ending balance Beginning balance
Property tax 14923915.86 7873067.23
Value-added tax 9309660.60 41389783.89
Enterprise income tax 5581481.56 2902794.24
Land value increment tax 5126676.88 4541408.65
Land use tax 4361936.47 2955305.79
Stamp duty 3292662.00 5189868.71
Personal income tax 1798390.21 2404290.78
Tariff 1493943.50 1544659.31
City construction and maintenance tax 314442.79 1090729.63
Education fees and local education surcharge 283040.15 804441.46
Others 1735835.88 579905.73
Total 48221985.90 71276255.42
32. Non-current liabilities maturing within one year
Item Ending balance Beginning balance
Long-term borrowings due within one year 1219878426.74 1610967861.49
Bonds payable due within one year 836087928.67 1997255226.21
Long-term payables due within one year
Lease liabilities due within one year 38236969.07 42617527.51
Total 2094203324.48 3650840615.21
33. Other current liabilities
Item Ending balance Beginning balance
Accounts payable paid by endorsement of
outstanding notes at the end of the Reporting 23699692.56 25720556.07
174Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
Period
Tax to be charged off 8695239.60 9709568.79
Refunds payable 6640858.12 10947147.43
Total 39035790.28 46377272.29
34. Long-term borrowings
Type of borrowings Ending balance Beginning balance
Guaranteed loan 706294185.84 1255126167.17
Unsecured loan 9170327422.20 5466646895.34
As collateral for loan 1054539393.22 1044296964.74
In pledge for loan 413447610.01 382824571.78
Less: Amount due within one year (see Note 1219878426.74
1610967861.49
VIII.32)
Total 10124730184.53 6537926737.54
35. Bonds payable
(1) Classification of bonds payable
Item Ending balance Beginning balance
Corporate bonds 1624809022.97 3593930102.58
Less: Bonds payable due within one year (see
836087928.671997255226.21
Note VIII.32)
Total 788721094.30 1596674876.37
175Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(2) Changes in bonds payable
Bon Amortization Defa
coup Accrue Repayment in
d Beginning Issued in the of ult
Name Total par value on Issue date Issue amount interest by par the current Ending balance
mat balance current period premium/dis stat
rate value period
urity count us
24
Konka 34.00
01 1500000000.00 2024/1/29 year 1495200000.00 1553962264.14 4500000.00 1537735.86 1560000000.00 No
(Remark %
* ) s
24
Konka 34.00
02 400000000.00 2024/3/18 year 398720000.00 412145073.33 3377777.85 477148.82 416000000.00 No
(Remark %
* ) s
24
Konka 34.03
03 400000000.00 2024/3/18 year 398720000.00 412239739.99 8060000.00 201257.90 16120000.00
(Remark % 404380997.89
No
* ) s
25
Konka 33.50
01 410000000.00 2025/6/23 year 408688000.00 416556819.71 7175000.00 328000.00 14350000.00
(Remark % 409709819.71
No
* ) s
25
Konka 32.80
03 790000000.00 2025/7/4 year 787472000.00 799026205.41 11060000.00 631999.96 No
(Remark % 810718205.37
* ) s
Total 3500000000.00 3488800000.00 3593930102.58 34172777.85 3176142.54 2006470000.00 1624809022.97
Remark * : "24 Konka 01" holds a term of 3 years with an issuer's option to adjust the coupon rate and an investor's put option at the end of the
second year. On December 12 2025 the Company decided to adjust the coupon rate of "24 Konka 01" to 1.50% for the last year of its duration.According to the data from the Shenzhen Office of China Securities Depository and Clearing Co. Ltd. the number of valid put bonds declared for "24
Konka 01" during the put registration period was 15000000.00 with 0 not put and the put amount was RMB 1500000000.00. As "24 Konka 01"
was fully put back it was delisted from the Shenzhen Stock Exchange after the interest from January 29 2025 to January 29 2026 and the put
principal of "24 Konka 01" were paid on January 29 2026.
176Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Remark * : "24 Konka 02" holds a term of 3 years with an issuer's option to adjust the coupon rate and an investor's put option at the end of the
second year. On January 22 2026 the Company decided to adjust the coupon rate of "24 Konka 02" to 1.00% for the last year of its duration.According to the data from the Shenzhen Office of China Securities Depository and Clearing Co. Ltd. the number of valid put bonds declared for "24
Konka 02" during the put registration period was 4000000.00 with 0 not put and the put amount was RMB 400000000.00. As "24 Konka 02" was
fully put back it was delisted from the Shenzhen Stock Exchange after the interest from March 18 2025 to March 17 2026 and the put principal of
"24 Konka 02" were paid on March 18 2026.Remark * : On March 18 2024 the Company issued RMB400 million of private placement corporate bonds with a duration of three years an annual
interest rate of 4.03% and a maturity date of March 18 2027.Remark * : On June 23 2025 the Company issued RMB410 million of private placement corporate bonds with a duration of three years (with an
investor's put option and an issuer's option to adjust the coupon rate at the end of the second year) an annual interest rate of 3.50% and a maturity
date of June 23 2028.Remark * : On July 4 2025 the Company issued RMB790 million of private placement corporate bonds with a duration of three years (with an
issuer's option to adjust the coupon rate and an investor's put option at the end of the second year) an annual interest rate of 2.80% and a maturity
date of July 4 2028.Remark * : China Resources Co. Ltd. provides a full unconditional and irrevocable joint and several liability guarantee for the due payment of these
public and private placement corporate bonds.
177Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
36. Lease liabilities
Item Ending balance Beginning balance
Lease liabilities 113859308.14 139476496.26
Less: Lease liabilities due within one year (see
38236969.0742617527.51
Note VIII.32)
Total 75622339.07 96858968.75
37. Long-term payables
Item Ending balance Beginning balance
Accrued finance lease outlay 1184362.72 2113713.86
Less: Unrecognized financing expenses 32123.55 80486.84
Amount above due within one year (see Note
VIII.32)
Total 1152239.17 2033227.02
38. Long-term employee compensations payable
Item Ending balance Beginning balance
Termination benefits-net liabilities of defined
4477769.974519491.87
contribution plans
Total 4477769.97 4519491.87
39. Estimated liabilities
Item Ending balance Beginning balance Reason for formation
Pending litigation 446578909.85 446591769.85
Performance
compensation or 346222251.09 346222251.09
contingent consideration
Product quality assurance After-sales services for
home appliance
56209773.54 57824544.20 products under the
"Three Guarantees"
policy
Discard expenses 2279280.13 2084301.83
Total 851290214.61 852722866.97
178Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
40. Deferred income
(1) Classification of deferred income
Beginning Increase in the Decrease in the Ending Reason for
Item
balance current period current period balance formation
Government Related to
408175795.5111830000.0014248948.14405756847.37
Grants assets/income
Total 408175795.51 11830000.00 14248948.14 405756847.37
179Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(2) Government subsidy projects
Amount Amount
Subsidy recognized as recognized as Related to
Government subsidy items Beginningbalance increase in the non-operating other income in Other changes Ending balance assets/incocurrent period revenue for the the current me
current period period
Plant construction subsidy for
98906371.811159766.1697746605.65
Related to
Yibin Konka Industrial Park assets
Medical waste centralized
treatment project in Gaoxian 30700281.06 1173898.01 29526383.05
Related to
assets
County Yibin City
Rewards and subsidies for
Special Project for Supporting
the Development of Advanced
1097680.25 27953950.70 Related to29051630.95
Manufacturing and Modern assets
Service Industry of Henan
Frestec Smart Home
Shenzhen Industrial
Investment Project Support
22445920.61644380.5021801540.11
Related to
Program for Konka Group assets
Headquarters
Industrial support funds for
119968.44 19416643.22 Related to19536611.66
Suining Konka Industrial Park assets
Related to
Industrial rewards and 19253579.48 240676.73 19012902.75 assets
180Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Amount Amount
Beginning Subsidy recognized as recognized as Related toGovernment subsidy items balance increase in the non-operating other income in Other changes Ending balance assets/incocurrent period revenue for the the current me
current period period
subsidies of Henan Frestec
Smart Home
Shaanxi Konka Smart's
equipment renewal supported
19060000.0019060000.00
Related to
by ultra-long-term special assets
treasury bonds
Returned payments for land by Related to
17149091.07196363.6216952727.45
Chongqing Konka assets
Plant decoration subsidy for
Related to
Yibin Konka Science and 9771835.06 977183.46 8794651.60 assets
Technology Industrial Park
Other government subsidies Related to
142300473.81 11830000.00 8639030.97 145491442.84 assets/incomrelated to assets/income e
Total 408175795.51 11830000.00 14248948.14 405756847.37
181Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
41. Other non-current liabilities
Item Ending balance Beginning balance
Contract liabilities over one year 201898911.52 283739354.36
Total 201898911.52 283739354.36
42. Share capital
Changes during the period (+ -)
Share
s as Shares as
divide dividend
Item Beginning balance New nd converted Ending balance
Others Subtotal
issues conve from
rted capital
from reserves
profit
Total shares 2407945408.00 2407945408.00
43. Other equity instruments
Outstanding financial Beginning balance Increase in the current year
instruments Quantity Book value Quantity Book value
Perpetual bonds 5000000000.00 5000000000.00
Total 5000000000.00 5000000000.00
(Continued)
Outstanding financial Decrease in the current year Ending balance
instruments Quantity Book value Quantity Book value
Perpetual bonds 5000000000.00 5000000000.00
Total 5000000000.00 5000000000.00
182Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Note: On December 16 2025 the Company issued perpetual bonds to its controlling shareholder Panshi Runchuang
(Shenzhen) Information Management Co. Ltd. According to the relevant contract the aforementioned perpetual bonds
have no definite maturity date and the Company has the right to defer interest payments. At the same time the
Company has the sole discretion to redeem the perpetual bonds and has no contractual obligation to deliver cash or
other financial assets. Therefore they are recognized as other equity instruments.
44. Capital reserve
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Other capital
406579870.80406579870.80
reserves
Total 406579870.80 406579870.80
183Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
45. Other comprehensive income
Amount in the current period
Less:
Amount
Less: Amount
recognized
recognized as
as other
other
comprehensi
Amount before comprehensive Less: Attributable to Attributable to
Beginning ve income in
Item income tax in the income in the Income the parent minority Ending balance
balance the previous
current period previous period tax company after shareholders
period and
and transferred expense tax after tax
transferred to
to profit or loss
retained
in the Reporting
earnings in
Period
the Reporting
Period
I. Other comprehensive income
that cannot be reclassified as -12300000.00 -12300000.00
profits or losses
Including: changes in fair value
of other equity instrument -12300000.00 -12300000.00
investments
II. Other comprehensive income
10433607.0949690521.6124135366.2725555155.3434568973.36
reclassified as profits and losses
Including: Other comprehensive
-416169.81-416169.81
income that can be transferred
184Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Amount in the current period
Less:
Amount
Less: Amount
recognized
recognized as
as other
other
comprehensi
Amount before comprehensive Less: Attributable to Attributable to
Beginning ve income in
Item income tax in the income in the Income the parent minority Ending balance
balance the previous
current period previous period tax company after shareholders
period and
and transferred expense tax after tax
transferred to
to profit or loss
retained
in the Reporting
earnings in
Period
the Reporting
Period
to profits or losses under the
equity method
Exchange difference on
10849776.9049690521.6124135366.2725555155.3434985143.17
translating foreign operations
Total of other comprehensive
-1866392.9149690521.6124135366.2725555155.3422268973.36
income
185Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
46. Special reserves
Beginning Increase in the Decrease in the
Item Ending balance
balance current period current period
Safety production
17197144.625215909.48800012.6521613041.45
fund
Total 17197144.62 5215909.48 800012.65 21613041.45
47. Surplus reserves
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Statutory surplus
1005961774.191005961774.19
reserves
Discretionary
238218590.05238218590.05
surplus reserves
Total 1244180364.24 1244180364.24
48. Undistributed profits
Item Current period Previous period
Retained earnings as at the end of the previous
period before the adjustment -15157108084.70 -1797506898.08
Adjustment to total undistributed profits at the
beginning of the period (+ for increase and - for -777201329.82
decrease)
Undistributed profits at the beginning of the period
after adjustment -15157108084.70 -2574708227.90
Plus: Net profit attributable to owners of the parent
-172780295.60-12582399856.80
company in this period
Capital reserves used to offset losses
Less: Appropriation of statutory surplus reserves
Ordinary share dividends payable
Balance at the end of the current period -15329888380.30 -15157108084.70
49. Operating revenue and operating costs
（1） Operating revenue and cost of sales
Amount in the current period Amount in the previous period
Item
Income Cost Income Cost
Principal
activity 3601045057.41 3426415308.74 4918681643.02 4759316001.26
186Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Amount in the current period Amount in the previous period
Other
businesses 250526312.93 178408616.31 328826206.25 223627213.43
Total 3851571370.34 3604823925.05 5247507849.27 4982943214.69
（2） Information on the breakdown of operating revenue and cost of sales
Category of Amount in the current period Amount in the previous period
contracts operating revenue Cost of sales operating revenue Cost of sales
Business type
Including: White TV 1910578496.64 1809196805.16 2095189645.55 1973305089.16
Color TV 1205726825.37 1188432239.08 2244724045.65 2235973005.98
PCB business 215705064.25 212005859.93 263122283.88 237844625.04
Semiconductor and
memory chip 125159148.68 88637175.43 97383684.29 102190984.23
business
Other businesses 394401835.40 306551845.45 547088189.90 433629510.28
Total 3851571370.34 3604823925.05 5247507849.27 4982943214.69
Classified by
operating region
Of which: Domestic 2712328151.23 2537337472.26 3538077644.56 3338376377.57
Overseas 1139243219.11 1067486452.79 1709430204.71 1644566837.12
Total 3851571370.34 3604823925.05 5247507849.27 4982943214.69
（3） Information in relation to the trade price apportioned to the residual
contract performance obligation
The amount of revenue corresponding to the performance obligations that had been
signed but not yet performed or not yet completed at the end of the Reporting Period
was RMB316451499.01 of which RMB267049245.50 was expected to be
recognized as revenue in 2026 RMB38133211.98 was expected to be recognized as
revenue in 2027 and RMB11269041.53 was expected to be recognized as revenue
in 2028 and thereafter.
50. Taxes and surcharges
Item Amount in the current period Amount in the previous period
Property tax 24601454.65 24311180.40
Stamp duty 7729010.84 14065831.49
Land use tax 9986123.66 9424136.83
Urban maintenance and
construction tax 3418187.37 2012107.89
Education surcharge 1643024.25 955454.58
187Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Amount in the current period Amount in the previous period
Local education surcharge 1095196.87 636968.01
Water resources fund 228849.27 393355.44
Others 981314.16 1058794.12
Total 49683161.07 52857828.76
51. G&A expenses
Item Amount in the current period Amount in the previous period
Employee Compensation 213931965.46 133183343.18
Depreciation charges 58301318.59 104104411.98
Intermediary fees 5517270.77 10436533.14
Travel expenses 1856916.58 2127820.45
Water and electricity expenses 3357130.99 6399979.25
Loss on scrapping of
inventories 225428.15 949468.49
Others 20193378.38 16444914.27
Total 303383408.92 273646470.76
52. Selling and distribution expenses
Item Amount in the current period Amount in the previous period
Employee Compensation 115930560.15 148789207.61
Advertising expense 9509453.07 42199803.07
Promotional activities 40347829.09 52144952.78
Logistics fee 17824812.57 26982858.70
Travel expenses 5004339.87 8395457.65
Lease expense 4015758.60 3584938.17
Entertainment fees 1770973.97 4397168.37
Exhibition fees 1198514.66 794856.72
Others 12981958.49 18236171.59
Total 208584200.47 305525414.66
53. R&D expenses
Item Amount in the current period Amount in the previous period
Labor costs 90024002.59 96735140.30
188Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Amount in the current period Amount in the previous period
Depreciation and amortization
expenses 55439467.41 59670273.81
New product trial production
expense 1159885.83 900602.57
Material expense 3482379.47 9793459.90
Commission service fee 28728.16 134759.46
Testing expense 1406384.01 1604963.68
Information use fee 256060.64 308099.64
Others 16568259.49 18803996.32
Total 168365167.60 187951295.68
54. Financial expenses
Item Amount in the current Amount in the previousperiod period
Interest expense 312546386.07 350360105.59
Less: Interest income 105092356.22 72105599.49
Add: Exchange loss 86080919.42 12128908.22
Other expenses 1254565.19 20345947.47
Total 294789514.46 310729361.79
55. Other income
Sources of other income Amount in the current Amount in the previousperiod period
Support funds 192783.00 14558900.00
Rewards and subsidies 395973.49 8415646.07
Transfer of deferred income 14248948.14 16988800.86
Tax rebates on software 2578908.20 252760.60
Post subsidies 217142.33 304630.24
Subsidies for L/C exports 593228.69 450000.00
Others 961341.92
Total 19188325.77 40970737.77
56. Gains from changes in fair value
Sources of gains from changes in the Amount in the current Amount in the previous
fair value period period
Financial assets measured at fair value
through current profit or loss 62041331.96 173409194.85
189Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Sources of gains from changes in the Amount in the current Amount in the previous
fair value period period
Total 62041331.96 173409194.85
57. Investment income
Item Amount in the current Amount in the previousperiod period
Returns on long-term equity investments
calculated by the equity method 428284698.54 -42498270.14
Return on investment arising from the
disposal of long-term equity investments 6409898.34 -211552.65
Conversion of long-term equity
investments accounted for by the equity 655666680.89
method to financial assets
Gains from remeasurement of residual
stock rights at fair value after losing 51916.92
control power
Interest income from debt investments
during the holding period 2771983.93 2470451.36
Investment income from financial assets
held for trading during the holding period 420553.86
Income from the derecognition of financial
assets at amortized cost -1192931.11 -2541005.90
Investment income from disposal of
financial assets measured at fair value -6211289.14 -73011755.91
through profit or loss
Total 430062360.56 540347018.43
58. Credit loss
Item Amount in the current Amount in the previousperiod period
Bad debt loss of notes receivable 45364.85 24121.03
Bad debt loss of accounts receivable 40562196.65 -40844738.44
Bad debt loss of other accounts
receivable -14355725.36 -76271800.35
Total 26251836.14 -117092417.76
59. Assets impairment loss
Item Amount in the current Amount in the previousperiod period
Inventory depreciation loss and contract
performance cost impairment loss -34598250.02 -85468130.96
Impairment loss on fixed assets -30763.46
Contractual asset impairment loss -112385.82 64275.10
Total -34741399.30 -85403855.86
190Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
60. Gains from disposal of assets
Item Amount in the current Amount in theperiod previous period
Gains on disposal of non-current assets -105935.16 31513481.94
Including: gains on disposal of non-current
assets not classified as held-for-sale assets -105935.16 31513481.94
Including: gains on disposal of fixed assets -105935.16 30906667.28
Gains on disposal of right-of-use assets 606814.66
Total -105935.16 31513481.94
61. Non-operating revenue
（1） Details of non-operating revenue
Amount included in
Item Amount in the Amount in the the current non-current period previous period recurring profit or
loss
Compensation and penalty income 3056319.77 2742411.30 3056319.77
Non-current assets damage and
retirement gains 69038.74 268150.12 69038.74
Others 3707421.34 6291648.09 3707421.34
Total 6832779.85 9302209.51 6832779.85
（2） Government grants recognized as profit or loss of the Reporting Period
The Group had no government grants included in the current profit or loss in the current
period.
62. Non-operating expenses
Amount included in
Item Current amount Amount for the the current non-previous period recurring profit or
loss
Losses on damage and scraping of
non-current assets 485922.33 1223752.24 485922.33
Compensation expense 90864.70 119454.41 90864.70
Others 3320705.44 2306994.33 3320705.44
Total 3897492.47 3650200.98 3897492.47
63. Income tax expense
（1） Income tax expense
191Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Amount in the current period Amount in the previousperiod
Income tax expense in the current
year 12168200.67 14766007.62
Deferred income tax expense -20712597.66 205603500.30
Total -8544396.99 220369507.92
（2） Adjustment process of accounting profits and income tax expenses
Item Amount in the current period
Total consolidated profit in the current period -272426199.88
Income tax expense calculated at legal/applicable tax
rate -68106549.97
Impact of different tax rates applied by subsidiaries 11473101.82
Impact of income tax in the periods before adjustment 4707193.17
Impact of non-taxable income -266863072.66
Impacts of non-deductible costs expenses and losses -500062.16
Impact of using deductible losses on the deferred tax
assets not recognized previously -5802957.00
Effect of deductible temporary differences or deductible
losses from deferred tax assets unrecognized in the 316808980.84
current period
Changes in the balance of deferred tax assets/liabilities in
previous period due to adjustment of tax rate
Others -261031.03
Income tax expense -8544396.99
64. Other comprehensive income
For details please refer to Note "VIII. 45 Other comprehensive income".
65. Items of statement of cash flows
（1） Cash related to operating activities
1） Cash generated from other operating activities
Item Amount in the current Amount in the previousperiod period
Income from government grants 23541247.31 48738644.95
Front money and guarantee deposit 61509791.92 41698070.33
Interest income from bank deposits 10343774.61 12715233.74
Trading funds 105719083.85 84787383.62
Compensation and penalty income 3226460.19 3109325.19
Others 24963143.93 24471226.45
Total 229303501.81 215519884.28
192Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
2） Cash used in other operating activities
Item Amount in the current Amount in the previousperiod period
Cash payment fee 161424669.74 253883805.96
Deposit and margin 115083846.17 53249245.94
Payment made on behalf 90.00 28616.88
Expense for bank handling charges 865304.41 1726391.23
Others 21855655.84 42373701.96
Total 299229566.16 351261761.97
(2) Cash related to investing activities
1） Cash generated from other investing activities
Item Amount in the currentperiod Amount in the previous period
Recovery of loan at call
Cash received from acquisition of
subsidiaries
Others 858150.68
Total 858150.68
2） Cash used in other investing activities
Item Amount in the current Amount in the previousperiod period
Payment of loan at call
Cash paid for disposal of subsidiaries
Others 48483.53 21122140.00
Total 48483.53 21122140.00
(3) Cash related to financing activities
1） Cash generated from other financing activities
Item Amount in the current Amount in the previousperiod period
Recovery of margin deposit pledged 1136434776.17 1385979814.26
Receiving loan at call 700000.00
Others 157261.11
Total 1136592037.28 1386679814.26
2） Cash used in other financing activities
193Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Amount in the current Amount in the previousperiod period
Deposit as margin for pledge 577001715.84 1220117802.84
Cash paid for leases 17608325.78 27571130.91
Retuning loan at call 2199917902.74 20800521.46
Financing cost 194323.50 18690332.38
Others 11708942.13 9741719.08
Total 2806431209.99 1296921506.67
194Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
3） Changes in liabilities arising from financing activities
Increase in the current period Decrease in the current period
Item Beginning balance Ending balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities
maturing within one year 3650840615.21 2019687704.67 2719092827.20 857232168.20 2094203324.48
Short-term borrowings 4575915552.66 1835707833.34 42011962.11 3981171059.23 2472464288.88
Long-term borrowings 6537926737.54 3995000000.00 987182461.74 236110566.20 1159268448.55 10124730184.53
Bonds payable 1596674876.37 46349146.76 18215000.16 836087928.67 788721094.30
Lease liabilities 96858968.75 3925129.03 2020290.08 23141468.63 75622339.07
Long-term payables 2033227.02 48363.29 469071.50 460279.64 1152239.17
Total 16460249977.55 5830707833.34 3099204767.60 6957078814.37 2876190293.69 15556893470.43
195Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
（4） Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current period.
（5） Significant activities and financial effects that do not involve current cash receipts and
payments but affect the financial position of the enterprise or may affect the enterprise's cash
flows in the future
Item Amount in the current period
Payment for materials made by endorsement of notes
receivable 866065931.05
Acquisition of long-term assets by endorsement of notes
receivable 36121469.83
Other payments made by endorsement of notes receivable 72045514.30
66. Supplementary information to the statement of cash flows
(1) Supplementary information to the statement of cash flows
Item Current amount Amount for the previousperiod
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit -263881802.89 -497119077.09
Add: Provision for asset impairment 34741399.30 85403855.86
Credit impairment loss -26251836.14 117092417.76
Depreciation of fixed assets depletion of oil and gas assets
depreciation of productive biological assets 167195559.18 220353011.40
Depreciation of right-of-use assets 23199763.27 24890541.80
Amortization of intangible assets 15369541.45 23917196.86
Amortization of long-term prepaid expense 66163656.40 70142033.93
Losses on disposal of fixed assets intangible assets and other
long-lived assets (" " indicates income) 105935.16 -31513481.94
Losses on scrap of fixed assets (" " indicates income) 416883.59 955602.12
Losses on changes in fair value (" " indicates income) -62041331.96 -173409194.85
Finance costs (" " indicates income) 305945156.45 320688430.62
Investment loss (" " indicates income) -430062360.56 -540347018.43
Decrease in deferred tax assets ("-" for increase) -737968.97 6266494.74
Increase in deferred income tax liabilities (" " indicates
decrease) -18477742.06 203196489.95
Decrease in inventories (" " indicates increase) 184573976.80 133699360.03
Decrease in accounts receivable generated from operating
activities (" " indicates increase) 136967524.15 -142879274.45
Increase in accounts payable used in operating activities (" "
indicates decrease) -655132076.42 -479972018.38
Others -14248948.14 -16988800.86
196Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Item Current amount Amount for the previousperiod
Net cash generated from/used in operating activities -536154671.39 -675623430.93
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:
Ending balance of cash 1875290029.52 2502399179.47
Less: beginning balance of cash 5020469510.26 2783177476.45
Plus: ending balance of cash equivalents
Less: beginning balance of cash equivalents
Net increase in cash and cash equivalents -3145179480.74 -280778296.98
(2) Supplier finance arrangements
* Terms and conditions of supplier finance arrangements
The Group entered into agreements with banks and financial institutions under which qualified
suppliers approved by the Group can assign their eligible accounts receivable from the Group to the
banks. The Group fulfills its unconditional payment obligation when the payables become due.* Balance Sheet Presentation Items and Related Information (Unit: RMB '0000)
Line items Ending balance Beginning balance
Accounts payable 75.35
Of which: Amount received by suppliers 75.35
Total 75.35
* Maturity date ranges of payments
Ending Beginning
Liabilities under the arrangements 360-365 days after the date of 360-365 days after the date ofissuance issuance
Comparable accounts payable not under the
arrangements - -
* Changes in the current period not involving cash receipts and payments
The changes in the Group's aforementioned financial liabilities were not affected by business
combinations or exchange rate fluctuations.
(3) Net cash paid for acquisition of subsidiaries in the current period
No net cash was paid for the acquisition of subsidiaries in the current period.
197Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(4) Net cash received for disposal of subsidiaries in the current period
There was no net cash received from disposal of subsidiaries in the current period.
(5) Breakdowns of cash and cash equivalents
Item Ending balance Beginning balance
Cash 1875290029.52 5020469510.26
Including: Cash on hand
Bank deposits available for payment at any time 1870288437.69 5015971489.92
Other monetary funds available for payment at any time 5001591.83 4498020.34
Balance of cash and cash equivalents at the end of the
1875290029.525020469510.26
year
(6) Limited use but still presented as cash and cash equivalents
Reasons for classifying the
Amount for the previous
Item Current amount funds as cash and cash
period
equivalents
The proceeds can be used at any
time to make payments and such
Project loan proceeds 15329963.22 21235919.44
payments can only be made for
projects
The proceeds can be used at any
time to make payments and such
Project pre-sale funds 12412922.19 14945902.26
payments can only be made for
projects
Total 27742885.41 36181821.70 —
(7) Monetary funds not classified as cash and cash equivalents
Amount for the previous Reasons for not classifying theItem Current amount period funds as cash and cashequivalents
Cash deposit 202348614.05 699851445.35 It is pledged for borrowing or depositfor issuance of banker acceptance
Time deposits 440277833.44 540851836.28 The management intends to hold thedeposits to maturity
Frozen funds 170026597.32 82682461.71 Not readily available for payment
Total 812653044.81 1323385743.34 —
198Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
67. Notes to the statements of changes in owners' equity
No "other" amount in the closing amount of last period was adjusted in the current period.
68. Foreign currency monetary items
（1） Foreign currency monetary items
Ending balance of Ending balance
Item Exchange rate
foreign currency denominated in RMB
Monetary assets
Including: USD 28421610.63 6.81090 193576747.84
EUR 73595.43 7.76956 571804.11
EGP 7670952.05 0.13843 1061889.89
GBP 1.32 9.01793 11.90
HKD 1239667.14 0.86855 1076712.89
CAD 6.96 4.79007 33.34
PLN 1966405.02 1.81154 3562221.35
Accounts receivable
Including: USD 85075181.64 6.81090 579438554.63
EUR 176089.46 7.76956 1368137.62
HKD 954432.71 0.86855 828972.53
AUD 49764.00 4.68124 232957.23
Prepayment
Including: USD 57671.50 6.81090 392794.82
Other receivables
Including: USD 109382627.43 6.81090 744994137.16
EGP 108000.00 0.13843 14950.44
HKD 12794169.39 0.86855 11112375.82
JPY 21400000.00 0.04201 899054.66
Accounts payable
Including: USD 2928087.97 6.81090 19942914.35
EUR 10931.74 7.76956 84934.81
EGP 30620358.59 0.13843 4238776.24
HKD 14248.91 0.86855 12375.89
Other payables
Including: USD 3047271.49 6.81090 20754661.39
199Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance of Ending balance
Item Exchange rate
foreign currency denominated in RMB
EUR 94328.95 7.76956 732894.44
EGP 498014.80 0.13843 68940.19
HKD 14171929.24 0.86855 12309029.14
（2） Overseas entities
The Group's significant overseas entities include Hongdin Trading Hong Kong Konka Chain Kingdom
Memory Technologies Hongjet Jiali International and Kowin Memory (Hong Kong). The main
overseas operating place is Hong Kong. The said companies' recording currency is HKD since the
main currency in circulation in Hong Kong is HKD.IX. R&D expenditures
Amount in the current Amount in the previous
Item
period period
Labor costs 90024002.59 96735140.30
Depreciation and amortization expenses 55439467.41 59670273.81
New product trial production expense 1159885.83 900602.57
Material expense 3482379.47 9793459.90
Commission service fee 28728.16 134759.46
Testing expense 1406384.01 1604963.68
Information use fee 256060.64 308099.64
Others 16568259.49 18803996.32
Total 168365167.60 187951295.68
Including: Expensed R&D expenditure 168365167.60 187951295.68
Capitalized R&D expenditure
X. Changes in consolidation scope
1. Business combination not under common control
The Group had no business combinations not under common control in the current period.
2. Business combination under common control
The Group had no business combinations under common control in the current period.
200Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
3、Disposal of subsidiaries
No subsidiaries were disposed of in the current period.
4. Change of consolidation scope due to other reasons
No subsidiaries were newly established or deregistered in the current period.
201Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
XI. Equity in other entities
1. Equity in the subsidiaries
(1) Compositions of the Group
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Enterprise management
1 Konka Venture Shenzhen Shenzhen consulting incubation Establishment orGuangdong Guangdong management housing 51 investment
leasing etc.
2 Yantai Konka Yantai Shandong Yantai Shandong Other professional consulting 51 Establishment orand investigation investment
3 Konka Enterprise Guiyang Guizhou Guiyang Guizhou Enterprise management Establishment orService consulting 51 investment
4 Yibin Konka Incubator Yibin Sichuan Yibin Sichuan Commercial services 51 Establishment orinvestment
5 Anhui Konka Chuzhou Anhui Chuzhou Anhui Manufacturing 78 Establishment orinvestment
6 Kangzhi Trade Chuzhou Anhui Chuzhou Anhui Wholesale 78 Establishment orinvestment
7 Konka Electronic Shenzhen Shenzhen Other science and technology Establishment orMaterials Guangdong Guangdong promotion services 100 investment
8 Konka Unifortune Shenzhen ShenzhenGuangdong Guangdong Trade and services 51
Establishment or
investment
9 Jiali International Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
10 Dongguan Konka Dongguan Dongguan Establishment orGuangdong Guangdong Manufacturing 75 25 investment
11 Suining Konka Smart Suining Sichuan Suining Sichuan Wholesale 100 Establishment orinvestment
202Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
12 Konka Europe Frankfurt Germany Frankfurt Germany International trade 100 Establishment orinvestment
13 Telecommunications Shenzhen ShenzhenTechnology Guangdong Guangdong Manufacturing 75 25
Establishment or
investment
14 Konka Mobility Hong Kong China Hong Kong China Commercial 100 Establishment orinvestment
15 Technology Industry Shenzhen Shenzhen Establishment orDevelopment Guangdong Guangdong Commercial 100 investment
16 Sichuan Konka Yibin Sichuan Yibin Sichuan Manufacturing 100 Establishment orinvestment
17 Yibin Konka Intelligent Yibin Sichuan Yibin Sichuan Manufacturing 100 Establishment orinvestment
18 Anhui Tongchuang Chuzhou Anhui Chuzhou Anhui Manufacturing 100 Establishment orinvestment
19 Anhui ElectricalAppliance Chuzhou Anhui Chuzhou Anhui Manufacturing 51
Establishment or
investment
Business
20 Frestec Refrigeration Xinxiang Henan Xinxiang Henan Manufacturing 51 combinations notunder common
control
21 Frestec Smart Home Xinxiang Henan Xinxiang Henan Manufacturing 51 Establishment orinvestment
Business
22 Frestec ElectricalAppliances Xinxiang Henan Xinxiang Henan Manufacturing 51
combinations not
under common
control
Business
23 Frestec HouseholdAppliances Xinxiang Henan Xinxiang Henan Manufacturing 51
combinations not
under common
control
24 Jiangsu Konka Smart ChangzhouJiangsu Changzhou Jiangsu Manufacturing 51
Establishment or
investment
25 Kangjiatong Shijiazhuang Hebei Shijiazhuang Hebei Trade and services 100 Establishment orinvestment
203Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
26 Pengrun Technology Shenzhen Shenzhen Establishment orGuangdong Guangdong Trade and services 51 investment
27 Jiaxin Technology Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
28 Beijing KonkaElectronics Langfang Hebei Langfang Hebei Sale of home appliances 100
Establishment or
investment
29 Tianjin Konka Tianjin Pilot Free Tianjin Pilot Free Establishment orTrade Zone Trade Zone Service industry 100 investment
30 Konka Circuit Shenzhen Shenzhen Manufacturing 100 Establishment orGuangdong Guangdong investment
31 Boluo Precision Boluo Guangdong Boluo Guangdong Manufacturing 100 Establishment orinvestment
32 Hong Kong Konka Hong Kong China Hong Kong China International trade 100 Establishment orinvestment
33 Hongdin Investment Hong Kong China Hong Kong China Investment holding 100 Establishment orinvestment
34 Chain Kingdom Establishment orMemory Technologies Hong Kong China Hong Kong China International trade 51 investment
Chain Kingdom
35 Semiconductor Shaoxing Zhejiang Shaoxing Zhejiang Trade and services 51 Establishment or
(Shaoxing) investment
36 Hongjet Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
37 Hongdin Trading Hong Kong China Hong Kong China International trade 100 Establishment orinvestment
38 Kanghao Technology Cairo Egypt Cairo Egypt International trade 67 Establishment orinvestment
39 Konka North America California USA California USA International trade 100 Establishment orinvestment
40 Konka Investment Shenzhen Shenzhen Capital market services 100 Establishment orGuangdong Guangdong investment
41 Yibin Konka Industrial park development Establishment orTechnology Park Yibin Sichuan Yibin Sichuan and operation management 100 investment
204Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
42 Konka Capital Shenzhen Shenzhen Capital market services 100 Establishment orGuangdong Guangdong investment
43 Konka Suiyong Shenzhen ShenzhenGuangdong Guangdong Commercial services 51
Establishment or
investment
44 Shengxing Industrial Shenzhen ShenzhenGuangdong Guangdong Commercial services 51
Establishment or
investment
45 Zhitong Technology Shenzhen Shenzhen Software and information Establishment orGuangdong Guangdong technology services 51 investment
46 Electronics Technology Shenzhen Shenzhen Establishment orGuangdong Guangdong Manufacturing 100 investment
47 Shenzhen Kangcheng Shenzhen Shenzhen Software and information Establishment orGuangdong Guangdong technology services 100 investment
48 Xiaojia Technology Shenzhen ShenzhenGuangdong Guangdong Retail trade 100
Establishment or
investment
49 Haimen Konka Nantong Jiangsu Nantong Jiangsu Trade and services 100 Establishment orinvestment
50 Chengdu KonkaElectronics Chengdu Sichuan Chengdu Sichuan Manufacturing 100
Establishment or
investment
Business
51 Xingda Hongye Zhongshan Zhongshan Manufacturing 51 combinations notGuangdong Guangdong under common
control
52 Liaoyang Kangshun Liaoyang Liaoning Liaoyang Liaoning Wholesale 100 Establishment orinvestment
53 Liaoyang Kangshun Comprehensive utilization of Establishment orRenewable Liaoyang Liaoning Liaoyang Liaoning renewable resources 100 investment
54 Nanjing Konka Nanjing Jiangsu Nanjing Jiangsu Wholesale 100 Establishment orinvestment
55 Shanghai Konka Shanghai Shanghai Real estate 100 Establishment orinvestment
56 Yantai Kangjin Yantai Shandong Yantai Shandong Real estate 62.8 Establishment orinvestment
57 Jiangxi Konka Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51 Businesscombinations not
205Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
under common
control
Business
58 Xinfeng Microcrystal Nanchang Jiangxi Nanchang Jiangxi Manufacturing and processing 51 combinations notunder common
control
59 Shenzhen Nianhua Shenzhen Shenzhen Commercial services 100 Establishment orGuangdong Guangdong investment
60 Shenzhen Konka Shenzhen ShenzhenSemiconductor Guangdong Guangdong Semiconductors 100
Establishment or
investment
61 Chongqing Konka Chongqing Chongqing Software and information 100 Establishment ortechnology services investment
62 Ji'an Konka Ji'an Jiangxi Ji'an Jiangxi Commercial services 51 Establishment orinvestment
63 Suining KonkaIndustrial Park Suining Sichuan Suining Sichuan
Industrial park development Establishment or
and operation management 100 investment
Suining Electronic
64 Technological Suining Sichuan Suining Sichuan Commercial services 100 Establishment or
Innovation investment
65 Shenzhen Chuangzhi Shenzhen Shenzhen Establishment orElectrical Appliances Guangdong Guangdong Wholesale 100 investment
Chongqing
66 Optoelectronic Chongqing Chongqing Research & experiment 70 5 Establishment or
Technology development investment
Computer
67 Kowin Memory Shenzhen Shenzhen telecommunications and other Establishment or(Shenzhen) Guangdong Guangdong electronic equipment 100 investment
manufacturing
Computer
68 Konka ChipCloud Yancheng Jiangsu Yancheng Jiangsu telecommunications and other Establishment orSemiconductor electronic equipment 100 investment
manufacturing
69 Nanjing Konka Smart Nanjing Jiangsu Nanjing Jiangsu Technology promotion and Establishment orapplication services 51 investment
206Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
70 Ningbo KanghanruiElectric Appliances Ningbo Zhejiang Ningbo Zhejiang
Electrical machinery and Establishment or
equipment manufacturing 60 investment
71 Suining JiarunProperty Suining Sichuan Suining Sichuan Real estate 100
Establishment or
investment
Ecological protection and
72 Yibin Kangrun Yibin Sichuan Yibin Sichuan environmental governance 67 Establishment or
services investment
73 Hainan KonkaTechnology Haikou Hainan Haikou Hainan Commercial services 100
Establishment or
investment
Business
74 Jiangxi High-transparency Substrate Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51
combinations not
under common
control
Computer
75 Nantong Konka Nantong Jiangsu Nantong Jiangsu telecommunications and other Establishment orelectronic equipment 100 investment
manufacturing
76 Chuzhou Konka Chuzhou Anhui Chuzhou Anhui Manufacturing 94.9 Establishment orinvestment
77 Konka FlexibleElectronics Suining Sichuan Suining Sichuan Manufacturing 97.5
Establishment or
investment
78 Konka HongyeElectronics Suining Sichuan Suining Sichuan Manufacturing 95.05
Establishment or
investment
79 Kowin Memory (Hong
Wholesale of computers
Hong Kong China Hong Kong China software and auxiliary 100 Establishment orKong) equipment investment
80 Konka Cross-border(Hebei) Handan Hebei Handan Hebei Wholesale 100
Establishment or
investment
81 Konka Central China Changsha Hunan Changsha Hunan Commercial services 100 Establishment orinvestment
Ecological protection and
82 Yibin Kangrun Medical Yibin Sichuan Yibin Sichuan environmental governance 63.65 Establishment or
services investment
207Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
Shanxi Konka Manufacture of household83 Intelligent Xi'an Shanxi Xi'an Shanxi cleaning and sanitary 51
Establishment or
electrical appliances investment
84 Chongqing Xinyuan
Science and technology Establishment or
Semiconductor Chongqing Chongqing promotion and application 75services investment
85 Anlu Konka Anlu Hubei Anlu Hubei Software and informationtechnology services 100
Establishment or
investment
86 Kanghong Dongsheng Shenzhen ShenzhenGuangdong Guangdong Commercial services 95.09
Establishment or
investment
87 Guizhou Konka New
Qiannan Buyi and Qiannan Buyi and
Material Technology Miao Autonomous Miao Autonomous Manufacturing and processing 51
Establishment or
Prefecture Guizhou Prefecture Guizhou investment
Computer
88 Shanxi Smart Home Jincheng Shanxi Jincheng Shanxi telecommunications and other Establishment orAppliance electronic equipment 100 investment
manufacturing
Qiannan Buyi and Qiannan Buyi and
89 Guizhou KangguiMaterial Technology Miao Autonomous Miao Autonomous Manufacturing and processing 70
Establishment or
Prefecture Guizhou Prefecture Guizhou investment
90 Nantong Kanghai Nantong Jiangsu Nantong Jiangsu Real estate 51 Establishment orinvestment
91 Chongqing Kangyiyun Chongqing Chongqing Real estate 80 Establishment orinvestment
92 Jiangxi Konka High- Establishment ortech Park Shangrao Jiangxi Shangrao Jiangxi Commercial services 100 investment
Shangrao Konka
93 Electronic Technology Shangrao Jiangxi Shangrao Jiangxi Research & experiment 100 Establishment or
Innovation development investment
94 Zhejiang Konka Shaoxing Zhejiang Shaoxing Zhejiang Research & experiment Establishment orElectronic development 100 investment
95 Zhejiang KonkaTechnology Industry Shaoxing Zhejiang Shaoxing Zhejiang Commercial services 51 49
Establishment or
investment
208Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Shareholding
Main place of Place of Acquisition
No. Name of subsidiary Business nature percentage (%)
business registration method
Direct Indirect
96 Xi'an Konka Intelligent Xi'an Shanxi Xi'an Shanxi Wholesale 51 Establishment orinvestment
Computer
97 Xi'an Konka Network Xi'an Shanxi Xi'an Shanxi telecommunications and other Establishment orelectronic equipment 100 investment
manufacturing
98 Xi'an KanghongTechnology Industry Xi'an Shanxi Xi'an Shanxi Commercial services 40 60
Establishment or
investment
99 Xi'an Konka IntelligentTechnology Xi'an Shanxi Xi'an Shanxi Retail trade 100
Establishment or
investment
100 Songyang IndustryOperation Lishui Zhejiang Lishui Zhejiang
Software and information Establishment or
technology services 51 investment
Computer
101 Kangyan Technology Shenzhen Shenzhen telecommunications and other Establishment orGuangdong Guangdong electronic equipment 100 investment
manufacturing
102 Songyang KonkaIntelligent Lishui Zhejiang Lishui Zhejiang Wholesale 100
Establishment or
investment
103 Konka North China Tianjin Tianjin Electrical machinery and Establishment orequipment manufacturing 100 investment
104 Digital Technology Shenzhen Shenzhen Software and information Establishment orGuangdong Guangdong technology services 100 investment
(2) Significant non-wholly-owned subsidiaries
Dividends declared to
Profit or loss attributable to
Shareholding of minority be distributed to Ending balance of minority
Company name minority shareholders in this
shareholders minority shareholders shareholders' equities
period
in this period
209Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Dividends declared to
Profit or loss attributable to
Shareholding of minority be distributed to Ending balance of minority
Company name minority shareholders in this
shareholders minority shareholders shareholders' equities
period
in this period
Shanxi Konka Intelligent 49.00% -6308400.14 156230848.79
(3) Key financial information of significant non-wholly-owned subsidiaries
Ending balance
Name of subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Shanxi Konka Intelligent 346995825.88 547052389.17 894048215.05 280399745.69 294810002.44 575209748.13
Beginning balance
Name of subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
Shanxi Konka Intelligent 726253447.73 547389728.20 1273643175.93 643226943.87 298974204.21 942201148.08
Name of subsidiary Amount in the current period
210Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Total comprehensive Cash flows from operating
operating revenue Net profit
income activities
Shanxi Konka Intelligent 134412722.53 -12874286.01 -12874286.01 -1059106.12
Amount in the previous period
Name of subsidiary Total comprehensive Cash flows from operating
operating revenue Net profit
income activities
Shanxi Konka Intelligent 106057798.34 -14556410.13 -14556410.13 -4779480.52
2. Equity in associates
(1) Important associates
Shareholding Accounting processing
Main place of Place of percentage (%) method for investment in
Name of associates Business nature
business registration joint ventures or associated
Direct Indirect
enterprises
Oriental Jiakang No. 1 (Zhuhai) Private Equity Investment
Zhuhai Zhuhai 49.95 Equity method
Investment Fund (Limited Partnership) management
Professional
Shenzhen Jielunte Technology Co. Ltd. Shenzhen Shenzhen machinery 42.79 Equity method
manufacturing
211Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(2) Key financial information of significant associates
Ending balance/amount incurred in the current period Beginning balance/amount incurred in previous period
Oriental Jiakang No. 1
Oriental Jiakang No. 1 (Zhuhai)
Item Shenzhen Jielunte (Zhuhai) Private Equity Shenzhen Jielunte
Private Equity Investment Fund
Technology Co. Ltd. Investment Fund (Limited Technology Co. Ltd.(Limited Partnership)
Partnership)
Current assets 361962760.84 250977751.37 350138667.41 219896979.76
Including: cash and cash equivalents 30599550.78 15919211.70 18775457.35 16787261.84
Non-current assets 368635137.77 381156956.39
Total assets 361962760.84 619612889.14 350138667.41 601053936.15
Current liabilities 32171808.25 309881281.60 20026785.45 280946973.50
Non-current liabilities 140110039.83 140456865.19
Total liabilities 32171808.25 449991321.43 20026785.45 421403838.69
Total net assets 329790952.59 169621567.71 330111881.96 179650097.46
Including: minority equity 3687277.66 4215206.30
Equities attributable to shareholders of the parent
329790952.59165934290.05330111881.96175434891.16
company
Share of net assets calculated based on the 164730580.82 71003282.71 164890885.04 75068589.93
212Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance/amount incurred in the current period Beginning balance/amount incurred in previous period
Oriental Jiakang No. 1
Oriental Jiakang No. 1 (Zhuhai)
Item Shenzhen Jielunte (Zhuhai) Private Equity Shenzhen Jielunte
Private Equity Investment Fund
Technology Co. Ltd. Investment Fund (Limited Technology Co. Ltd.(Limited Partnership)
Partnership)
shareholding
Adjustments
--Goodwill
--Unrealized profit of internal transactions
--Others
Book value of equity investments in associated
164730580.8271003282.71164890885.0480165191.30
enterprises
Fair value of equity investments in associates with
publicly quoted prices
operating revenue 167820427.24 173767758.81
Finance costs -14270.63 5439755.12 -41957.20 4931999.28
Income tax expense 2604773.10 4045925.04
Net profit -320929.37 -10314401.65 -233242.80 -11900755.32
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -320929.37 -10314401.65 -233242.80 -11900755.32
213Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance/amount incurred in the current period Beginning balance/amount incurred in previous period
Oriental Jiakang No. 1
Oriental Jiakang No. 1 (Zhuhai)
Item Shenzhen Jielunte (Zhuhai) Private Equity Shenzhen Jielunte
Private Equity Investment Fund
Technology Co. Ltd. Investment Fund (Limited Technology Co. Ltd.(Limited Partnership)
Partnership)
Dividend received from joint venture in the current
year
214Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(3) Summarized financial information of unimportant associates
Ending balance/amount Beginning
Item incurred in the current balance/amount incurred
period in previous period
Associates
Total book value of investments 2183737703.33 1780982080.65
The total of following items according to
the shareholding proportions
--Net profit 433146694.53 -33813434.11
--Other comprehensive income 35170.29
--Total comprehensive income 433146694.53 -33778263.82
XII. Government grants
1. Liability items involving government grants
Amount
Amount
Subsidy recognized as
Beginning transferred to
Account title increase in the non-operating
balance other income for
current period revenue for the
the current period
current period
Deferred income 408175795.51 11830000.00 14248948.14
(Continued)
Other changes in
Account title Ending balance Related to assets/ income
the current period
Deferred income 405756847.37 Related to assets/ income
2. Government grants included in the current profit or loss
Account title Amount in the current period Amount in the previous period
Other income 19188325.77 40970737.77
Finance costs
XIII. Risks associated with financial instruments
The Group's main financial instruments include borrowings accounts receivable
accounts payable trading financial assets and equity instrument investments. Please
refer to Note VIII for detailed descriptions of various financial instruments. The risks
215Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
related to these financial instruments and the risk management policies adopted by the
Group to mitigate these risks are described below. The management of the Group
manages and monitors these risk exposures to ensure that these risks are controlled
within a limited scope.
1. Management objectives and policies for various risks
The Group's objective in risk management is to achieve an appropriate balance between
risk and return minimize the negative impact of risk on the Group's operating
performance and maximize the interests of shareholders and other equity investors.Based on the risk management goal the basic strategy of the Company's risk
management is determining and analyzing the various risks faced by the Company
setting up the bottom line of risk and conducting appropriate risk management and timely
supervising various risks in a reliable way and controlling the risk within the range of limit.
(1) Market risks
1) Exchange rate 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 Group 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 Group'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 June 30 2026 the Group's assets and liabilities were mainly the balance in RMB
except for the assets or liabilities of a balance in USD as listed below.Item Ending amount Beginning amount
Monetary assets 28421615.79 27663141.48
Accounts receivable 85075181.64 87163632.40
Other receivables 109382627.43 110851224.81
Other payables 2928087.97 5589778.90
Accounts payable 3047271.49 3108148.44
The Group pays close attention to the impact of exchange rate changes on the Group'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
216Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
The Group bears interest rate risk due to interest rate changes of interest-bearing
financial assets and liabilities. The Group's interest bearing financial assets are mainly
bank deposits of which the majority of the variable interest rates are short-term in nature
while the interest bearing financial liabilities are mainly bank borrowings and corporate
bonds. The Group's long-term bank borrowings and corporate bonds have fixed interest
rates. The risk of changes in cash flows of financial instruments due to interest rate
fluctuations is mainly related to short-term bank borrowings with floating interest rates.The Group's policy is to maintain the floating interest rates of such borrowings to eliminate
the fair value risk of interest rate changes. As of June 30 2026 the balance of such short-
term borrowings was RMB 2472464288.88.
(2) Credit risk
As of June 30 2026 the maximum credit risk exposure that may cause financial losses to
the Group mainly came from losses generated from the Group's financial assets due to
failure of the other party to a contract to perform its obligations and the financial guarantee
undertaken by the Group including:
The book amount of the financial assets recognized in the consolidated balance sheet; for
financial instruments measured at fair value the book value reflects its risk exposure but
it is not the maximum risk exposure and its maximum risk exposure will change with the
change of fair value in the future.In order to reduce credit risk the Group 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 Group 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
Group's management believes that the Group's credit risk has been greatly reduced.The Group's working capital is deposited in banks with a high credit rating so the credit
risk of working capital is low.The Group 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 Group has no other major credit concentration risks. For the financial assets of the
Group that have been individually impaired please refer to Note VIII. 4. Accounts
receivable and 7. Other receivables.
(3) Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on
the due date. The Group manages liquidity risk in the method of ensuring that there is
sufficient liquidity to fulfil debt obligations without causing unacceptable loss or damage to
217Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
the Group's reputation. In order to mitigate the liquidity risk the Group's management has
carried out a detailed inspection on the liquidity of the Group including the maturity of
accounts payable and other payables bank credit line and bond financing. The
conclusion is that the Group 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 Group based
on the maturity period of the undiscounted remaining contractual obligations is as
follows:
218Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Amount as of June 30 2026:
Item Within one year One to two years Two to five years Over 5 years Total
Financial assets
Monetary assets 2687943074.33 2687943074.33
Trading financial assets 138775929.60 138775929.60
Notes receivable 156921039.72 156921039.72
Accounts receivable 1036383168.85 1036383168.85
Other receivables 947515719.09 947515719.09
Other current assets 719531026.32 719531026.32
Financial liabilities
Short-term borrowings 2472464288.88 2472464288.88
Notes payable 739788094.34 739788094.34
Accounts payable 1800540624.79 1800540624.79
Other payables 4345738069.13 4345738069.13
Employee benefits payable 237633221.18 237633221.18
Non-current liabilities maturing
within one year 2094203324.48 2094203324.48
Long-term borrowings 560100000.00 8913034267.20 651595917.33 10124730184.53
Bonds payable 788721094.30 788721094.30
Long-term payables 1152239.17 1152239.17
219Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
2. Sensitivity analysis
The Group adopts sensitivity analysis technology to analyze 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:
First half of 2026 First half of 2025
Exchange rate
Item Impact on Impact on
fluctuations Impact on net profit Impact on net profit
shareholders' equity shareholders' equity
Appreciation
USD of 1% against 12260284.78 8122619.77 11847729.74 7429981.30
RMB
Depreciation
USD of 1% against -12260284.78 -8122619.77 -11847729.74 -7429981.30
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:
220Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
First half of 2026 First half of 2025
Interest rate
Item Impact on Impact on
fluctuations Impact on net profit Impact on net profit
shareholders' equity shareholders' equity
Borrowings
at floating Up 0.5% -9458764.78 -8889845.61 -23723112.64 -23151242.01
interest rates
Borrowings
at floating Down 0.5% 9458764.78 8889845.61 23723112.64 23151242.01
interest rates
XIV. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Fair value at period end
Item Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
I. Continuous fair value
————
measurement
(I) Trading financial assets 138775929.60 138775929.60
1. Financial assets
measured at fair value
138775929.60138775929.60
through current profit or
loss
(II) Accounts receivable
95040616.2595040616.25
financing
(III) Other debt investments -
(IV) Other equity instrument
10213810.2010213810.20
investments
(V) Investment properties -
(VI) Other non-current
1041679477.771041679477.77
financial assets
Total assets continuously
138775929.6095040616.251051893287.971285709833.82
measured at fair value
Total liabilities
continuously measured
at fair value
II. Non-continuous fair — — — —
221Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Fair value at period end
Item Level-1 fair value Level-2 fair value Level-3 fair value
Total
measurement measurement measurement
value measurement
Total assets not
continuously measured
at fair value
Total liabilities not
continuously measured
at fair value
2. Basis for recognition of the market price of items measured at fair value of Level 1 on a
going and non-going concern
The Level-1 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 valuation techniques and important parameters of sustainable
and non-sustainable items measured on the basis of fair value of level 2
Level 2 input value is the directly or indirectly observable input value of the relevant assets or liabilities
except for the level 1 input value.
4. Continuous and non-continuous Level 3 fair value measurement items valuation techniques
used and the qualitative and quantitative information of important parameters
The Level-3 inputs are the unobservable inputs of related assets and liabilities.
5. Continuous measurement items by fair value reason for conversion among all levels in the
current period and policies for determining the time of conversion
For the Group's items continuously measured at fair value there was no conversion between levels in
the current period.
6. Change of valuation techniques in the current period and reason for change
For the items measured at fair value of the Group there were no changes in valuation techniques in
the current period.
222Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
XV. Related parties and related-party transactions
1. Parent company
Shareholding Voting right
percentage of percentage of
Name of the parent Place of Registered
Business nature the parent the parent
company registration capital
company in the company in the
Company (%) Company (%)
Panshi Runchuang Consulting services
RMB 11.71
(Shenzhen) Information Shenzhen and enterprise 29.999997 29.999997
billion
Management Co. Ltd. management
The ultimate controller of the Company is State-owned Assets Supervisor Commission of the State
Council.
2. Subsidiaries of the Company
Please refer to "Note XI.1. (1) Subsidiaries" for the information of subsidiaries.
3. Associates of the Company
For details of the Company's important associates please refer to "Note XI.2.(1) Important
associates."
Other associates involved in the related-party transactions with the Company in the current period or
leading to balance due to the related-party transaction they had with the Company in previous periods:
Name of associates Relationship with the Company
Kangkong Venture Capital (Shenzhen) Co. Ltd. Associates
Nanjing Zhihuiguang Information Technology Research Institute Co.Ltd. Associates
Feidi Technology (Shenzhen) Co. Ltd. Associates
Foshan Zhujiang Media Creative Park Cultural Development Co. Ltd. Associates
Kangkai Technology Service (Chengdu) Co. Ltd. Associates
Puchuang Jiakang Technology Co. Ltd. Associates
Shenzhen Jielunte Technology Co. Ltd. Associates
Orient Excellent (Zhuhai) Asset Management Co. Ltd. Associates
Tongxiang Wuzhen Kunyu Venture Capital Co. Ltd. Associates
Shenzhen RF-Llink Technology Co. Ltd. Associates
Anhui Kaikai Shijie E-commerce Co. Ltd. Associates
Shaanxi Silk Road Yunqi Intelligent Technology Co. Ltd. Associates
Shenzhen Kanghongxing Intelligent Technology Co. Ltd. Associates
Shenzhen Zhongkang Beidou Technology Co. Ltd. Associates
223Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Name of associates Relationship with the Company
Shenzhen Yaode Technology Co. Ltd. Associates
Nantong Konka Technology Industrial Park Operation Management
Co. Ltd. Associates
Chuzhou Kangxin Health Industry Development Co. Ltd. Associates
Dongguan Guankang Yuhong Investment Co. Ltd. Associates
Shenzhen Morsemi Semiconductor Technology Co. Ltd. Associates
Yantai Kangyun Industrial Development Co. Ltd. Associates
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology
Co. Ltd. Associates
Shenzhen KONKA E-display Co. Ltd. Associates
Chongqing Yuanlv Benpao Real Estate Co. Ltd. Associates
Shenzhen Kangpeng Digital Technology Co. Ltd. Associates
Yantai Kangtang Construction Development Co. Ltd. Associates
Dongguan Konka Smart Electronic Technology Co. Ltd. Associates
Beijing Konka Jingyuan Technology Co. Ltd. Associates
Shenzhen Kangxi Technology Innovation Development Co. Ltd. Associates
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. Associates
Guangdong Kangyuan Semiconductor Co. Ltd. Associates
Chongqing Kangjian Photoelectric Technology Co. Ltd. Associates
Anhui Kangta Supply Chain Management Co. Ltd. Associates
Wuhan Kangtang Information Technology Co. Ltd. Associates
Sichuan Chengrui Real Estate Co. Ltd. Associates
Hefei KONSEMI Storage Technology Co. Ltd. Associates
Sichuan Hongxinchen Real Estate Development Co. Ltd. Associates
Chongqing Lanlv Moma Real Estate Development Co. Ltd. Associates
Yantai Kangyue Investment Co. Ltd. Associates
Econ Technology Associates
Dongguan Kangjia New Materials Technology Co. Ltd. Associates
Zhejiang Kangying Semiconductor Technology Co. Ltd. Associates
Kangshengjia Smart Energy (Zhejiang) Co. Ltd. Associates
Konka Huanjia Environmental Technology Co. Ltd. Associates
4. Other related parties
Names of other related parties Relationship with the Company
Chuzhou Hanshang Electric Appliance Co. Ltd. Minority shareholder of subsidiary
224Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Names of other related parties Relationship with the Company
Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
Jiangsu Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
HOHOELECTRICAL＆FURNITURECO Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment Co. Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Guizhou Jiading Mining Management Investment Co. Ltd. Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co. Ltd. Minority shareholder of subsidiary
Central SOEs Industrial Investment Fund for Poverty-stricken Area
(Jiangxi) Industrial Investment Fund Partnership (L.P.) Minority shareholder of subsidiary
Chuzhou State-owned Assets Management Co. Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong Technology Co. Ltd. Minority shareholder of subsidiary
Liang Ruiling Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co. Ltd. Minority shareholder of subsidiary
Dai Yaojin Minority shareholder of subsidiary
Dai Rongxing Close family member of minority shareholders
Jiangxi Meiji Enterprise Co. Ltd. Companies controlled by the ultimate controller ofminority shareholders of subsidiaries
5. Related party transactions
(1) Related party transactions on purchase and sales of goods rendering and receipt of
services
1） Purchasing goods/receiving services
Related party Content of related-party Amount in the current Amount in thetransactions period previous period
Chuzhou Hanshang Electric Appliance Co.Ltd. Purchase of goods 16912021.34 42258702.76
OCT Enterprises Co. Ltd. and its subsidiaries Purchase of goods and
and associates services 11049058.57 12268638.11
Shenzhen Jielunte Technology Co. Ltd. and
its subsidiaries and associates Purchase of goods 10469586.42 6745228.28
Korea Electric Group Co. Ltd. and its
subsidiaries Purchase of goods 7319212.86 3137843.02
China Resources Company Limited and its Purchase of goods and
subsidiaries and associates services 5477415.68
Shenzhen KONKA E-display Co. Ltd. and its Purchase of goods and
subsidiaries services 1888157.36 6969990.68
225Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Related party Content of related-party Amount in the current Amount in thetransactions period previous period
Jiangsu Korea Electric Group Co. Ltd. Purchase of goods 1712721.54 5551975.72
Dongguan Konka Smart Electronic
Technology Co. Ltd. Purchase of goods 141860.89 415774.72
Dongguan Kangjia New Materials Technology
Co. Ltd. Purchase of goods 789129.04
Subtotal of other related parties Purchase of goods andservices 937305.42 1698466.84
Total 55907340.08 79835749.17
(2) Sales of goods/ rendering of services
Related party Content of related- Amount in the current Amount in theparty transactions period previous period
Chuzhou Hanshang Electric Appliance Co. Sales of goods and
Ltd. provision of labour 241953717.85 188343769.31service
Korea Electric Group Co. Ltd. and its Provision of labour
subsidiaries service 31871866.76 36632643.64
Zhejiang Kangying Semiconductor Sales of goods and
Technology Co. Ltd. and its subsidiaries provision of labour 23017497.22 9699069.13service
OCT Enterprises Co. Ltd. and its subsidiaries Sales of goods and
and associates provision of labour 6931496.66 21189371.31service
China Resources Company Limited and its Sales of goods and
subsidiaries and associates provision of labour 1321324.97service
Shenzhen KONKA E-display Co. Ltd. and its Sales of goods and
subsidiaries provision of labour -84733.33 10189054.91service
Dongguan Konka Smart Electronic
Technology Co. Ltd. Sales of goods 13278.93 2379882.99
Hefei KONSEMI Storage Technology Co.Ltd. Sales of goods 59339.72 59736.00
Shenzhen Jielunte Technology Co. Ltd. and Provision of labour
its subsidiaries and associates service 297.17 1678163.41
Nantong Konka Technology Industrial Park Sales of goods and
Operation Management Co. Ltd. provision of labour 566037.74service
Sales of goods and
Subtotal of other related parties provision of labour 756168.13 7125673.74
service
Total 305840254.08 277863402.18
(3) Related party leases
1） Rental Status
Recognized in the current Recognized in the
Leased assets
Lessee period previous period
Category
Lease income Lease income
Commercial
OCT Enterprises Co. Ltd. and its
residences and office 6395607.53 7465175.99
subsidiaries and associates
buildings
226Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Recognized in the current Recognized in the
Leased assets
Lessee period previous period
Category
Lease income Lease income
Commercial
Shenzhen KONKA E-display Co. Ltd.residences and office 567010.47 1853770.60
and its subsidiaries
buildings
Commercial
Other related parties residences and office 1746404.41 4906003.52
buildings
Total 8709022.41 14224950.11
2） Lease situation
Recognized in the Recognized in the
Leased assets
Lessor current period previous period
Category
Lease expense Lease expense
Commercial
Overseas Chinese Town Holdings Company
residences and 16026062.88 15249291.43
and its subsidiaries
office buildings
Dongguan Guankang Yuhong Investment Co.Industrial plant 15210273.00 3182580.32
Ltd.Total 31236335.88 18431871.75
(4) Related party guarantees
1） As the guarantor
Contracted Actual Whether
The secured party guarantee guarantee
the
amount amount Currency
Start date of Expiry date of
guarantee guarantee guarantee
(RMB'0000) (RMB'0000) iscompleted
Anhui Tongchuang 4000.00 2500.00 CNY 2025/4/21 2026/4/21 No
Konka ChipCloud
Semiconductor 12100.00 6000.00 CNY 2024/11/26 2025/8/1 No
Chongqing Konka 38000.00 11548.58 CNY 2022/12/13 2037/12/13 No
Dongguan Konka 80000.00 29723.74 CNY 2021/6/23 2031/5/7 No
Xi'an Kanghong
Technology Industry 30000.00 3460.84 CNY 2023/5/26 2032/12/31 No
Konka Hongye Electronics 19010.00 13834.72 CNY 2024/1/24 2038/11/7 No
Ningbo Kanghanrui Electric
Appliances 6000.00 472.98 CNY 2025/5/9 2026/8/9 No
227Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Contracted Actual Whether
The secured party guarantee guarantee Start date of Expiry date of
the
amount amount Currency guarantee guarantee guarantee
(RMB'0000) (RMB'0000) iscompleted
Ningbo Kanghanrui Electric
Appliances 6000.00 2400.00 CNY 2025/7/13 2026/7/12 No
Anhui Konka 10215.95 4321.27 CNY 2021/8/10 2031/7/15 No
Anhui Konka 7000.00 500.00 CNY 2021/10/29 2026/10/26 No
Anhui Konka 7000.00 500.00 CNY 2022/10/24 2026/10/26 No
Anhui Konka 5000.00 3513.06 CNY 2023/6/25 2028/6/24 No
Econ Technology 1498.97 1099.25 CNY 2023/5/22 2024/5/21 No
Econ Technology 4388.00 577.81 CNY 2024/10/24 2025/8/6 No
Econ Technology 1498.97 369.75 CNY 2025/1/14 2026/1/13 No
Econ Technology 1249.15 1249.15 CNY 2026/3/10 2027/3/9 No
Econ Technology 999.32 999.32 CNY 2026/3/10 2027/3/9 No
Econ Technology 1249.15 1249.15 CNY 2026/3/16 2027/3/15 No
Econ Technology 1249.15 1249.15 CNY 2026/4/27 2027/4/26 No
Econ Technology 749.49 749.49 CNY 2026/4/29 2027/4/28 No
Econ Technology 499.66 139.40 CNY 2026/4/7 2027/4/6 No
Econ Technology 2498.29 2498.29 CNY 2026/4/3 2027/4/2 No
Econ Technology 1249.15 1249.15 CNY 2026/4/8 2027/4/7 No
Econ Technology 1249.15 1249.15 CNY 2026/4/7 2027/4/6 No
2） As the secured party
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0000)
completed
China Resources Inc. 40000.00 CNY 2025/12/9 2027/3/18 No
China Resources Inc. 41000.00 CNY 2025/12/9 2028/6/23 No
China Resources Inc. 79000.00 CNY 2025/12/9 2028/7/4 No
Chuzhou State-owned Assets Management
Co. Ltd. 950.68 CNY 2021/8/10 2031/7/15 No
Chuzhou State-owned Assets Management
Co. Ltd. 110.00 CNY 2021/10/29 2026/10/26 No
Chuzhou State-owned Assets Management
Co. Ltd. 110.00 CNY 2022/10/24 2026/10/26 No
Chuzhou State-owned Assets Management
Co. Ltd. 772.87 CNY 2023/6/25 2028/6/24 No
228Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0000)
completed
Wu Guoren 875.00 USD 2019/12/31 2024/12/31 No
Wu Guoren 1872.50 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 840.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 1797.60 USD 2019/12/31 2024/12/31 No
Shenzhen Unifortune Supply Chain
Management Co. Ltd. 1269.10 USD 2021/6/21 2022/12/31 No
Shenzhen Unifortune Supply Chain
Management Co. Ltd. 650.49 USD 2021/6/21 2022/12/31 No
Guizhou Huajinrun Technology Co. Ltd. 381.15 USD 2022/1/1 2025/12/31 No
Guizhou Huajinrun Technology Co. Ltd. 157.50 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong Technology Co.Ltd. 241.40 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong Technology Co.Ltd. 99.75 USD 2022/1/1 2025/12/31 No
AUJET INDUSTRY LIMITED 3155.11 USD 2021/11/10 2025/12/31 No
AUJET INDUSTRY LIMITED 1029.00 USD 2020/7/20 2025/12/31 No
Zhu Xinming 12446.00 CNY 2022/10/15 2023/10/14 No
Zhu Xinming 3399.49 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 13249.19 CNY 2023/2/19 2024/2/18 No
Zhu Xinming 6860.00 CNY 2023/3/1 2024/2/28 No
Zhu Xinming 2330.54 CNY 2023/3/9 2024/3/8 No
Zhu Xinming 2156.00 CNY 2023/4/1 2023/9/30 No
Zhu Xinming 443.45 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/3/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/6/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/7/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/10/11 2023/12/31 No
Zhu Xinming 149.45 CNY 2023/10/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/12/29 2023/12/31 No
Zhu Xinming 490.00 CNY 2023/2/28 2024/2/27 No
Zhu Xinming 5109.05 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 252.63 CNY 2023/1/13 2023/12/31 No
229Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0000)
completed
Zhu Xinming 101.77 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 203.63 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 1862.90 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 223.85 CNY 2023/2/17 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/3/8 2023/12/31 No
Zhu Xinming 101.35 CNY 2023/5/19 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/6/8 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/9/8 2023/12/31 No
Zhu Xinming 62.25 CNY 2023/12/7 2023/12/31 No
Zhu Xinming 128.87 CNY 2024/11/1 2026/10/30 No
Jiangxi Konka 13431.31 CNY 2023/6/15 2027/3/8 No
Jiangxi High-transparency Substrate 38045.57 CNY 2023/6/15 2027/3/19 No
Jiangxi High-transparency Substrate 258.80 CNY 2024/4/28 2030/3/6 No
Xinfeng Microcrystal 34475.18 CNY 2023/6/15 2025/12/31 No
Jiangxi Konka 56.53 CNY 2024/3/7 2027/3/6 No
Jiangxi High-transparency Substrate 234.44 CNY 2024/3/7 2027/3/6 No
Xinfeng Microcrystal 1379.77 CNY 2024/3/4 2027/3/3 No
Hu Zehong 2025/6/19 2029/6/18 No
6320.02 CNY
Liang Ruiling Dai Yaojin 2025/6/19 2026/12/31 No
Xingda Hongye 20949.46 CNY 2025/6/19 2029/6/18 No
Suiyong Rongxin Asset Management Co.Ltd. 2450.00 CNY 2018/1/1 2025/6/30 No
Suiyong Rongxin Asset Management Co.Ltd. 2842.00 CNY 2018/1/1 2025/12/31 No
Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou Huajinrun
Technology Group Co. Ltd. Huaying
Gaokede Electronic Technology Co. Ltd. and 2022/1/1 2025/12/31 No
Huaying Gaokelong Electronic Technology 735.00 CNY
Co.Ltd.Shenzhen Baili Yongxing Technology Co.Ltd. 2018/1/1 2023/12/31 No
Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou Huajinrun
Technology Group Co. Ltd. Huaying
Gaokede Electronic Technology Co. Ltd. and 488.37 CNY 2022/1/1 2025/12/31 No
Huaying Gaokelong Electronic Technology
Co.Ltd.
230Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Whether
Guarantee
the
amount Guarantee Guarantee
Guarantor Currency guarantee
(RMB Start date Due date
is
‘0000)
completed
Shenzhen Baili Yongxing Technology Co.Ltd. 2018/1/1 2023/12/31 No
Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou Huajinrun
Technology Group Co. Ltd. Huaying
Gaokede Electronic Technology Co. Ltd. and 2022/1/1 2025/12/31 No
Huaying Gaokelong Electronic Technology 552.72 CNY
Co.Ltd.Shenzhen Baili Yongxing Technology Co.Ltd. 2018/1/1 2023/12/31 No
Chuzhou Hanshang Electric Appliance Co.Ltd. 2688.62 CNY 2021/5/20 2024/5/19 No
Konka Venture 1322.54 CNY 2021/12/15 2022/11/5 No
(5) Loans from/to related parties
Related party Amount(RMB'0000) Currency Start date Due date
Borrowed from
Chuzhou Hanshang Electric Appliance
Co. Ltd. 12862.50 CNY 2025/1/1 2026/12/31
Chuzhou Hanshang Electric Appliance
Co. Ltd. 2450.00 CNY 2024/8/3 2026/12/31
Chuzhou Hanshang Electric Appliance
Co. Ltd. 980.00 CNY 2025/2/14 2026/2/13
Kangkong Venture Capital (Shenzhen)
Co. Ltd. 245.00 CNY 2022/7/21 2026/7/18
Beijing Xuri Shengxing Technology Co.Ltd. 228.67 CNY 2024/12/1 2025/11/30
Total 16766.17
Lent to:
Dongguan Guankang Yuhong
Investment Co. Ltd. 2223.19 CNY 2022/8/6 2025/9/25
Dongguan Guankang Yuhong
Investment Co. Ltd. 17376.81 CNY 2022/8/6 2025/9/25
Chuzhou Kangxin Health Industry
Development Co. Ltd. 13288.00 CNY 2022/12/18 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 2000.00 CNY 2022/12/18 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 735.00 CNY 2023/1/5 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 59.45 CNY 2023/1/5 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 1240.03 CNY 2022/12/18 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 16758.00 CNY 2023/3/22 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 1359.26 CNY 2023/3/21 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 109.95 CNY 2023/3/21 2025/12/21
231Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Related party Amount(RMB'0000) Currency Start date Due date
Chuzhou Kangxin Health Industry
Development Co. Ltd. 1344.36 CNY 2023/3/22 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 2080.72 CNY 2023/10/18 2025/12/21
Chuzhou Kangxin Health Industry
Development Co. Ltd. 562.97 CNY 2023/12/22 2025/12/21
Sichuan Chengrui Real Estate Co. Ltd. 14724.50 CNY 2022/1/21 2026/4/15
Yantai Kangyue Investment Co. Ltd. 12852.70 CNY 2020/12/16 2022/11/5
Yantai Kangyun Industrial Development
Co. Ltd. 10020.00 CNY 2021/11/23 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 949.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 1394.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 323.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 564.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 1020.00 CNY 2022/3/17 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 3400.00 CNY 2022/5/23 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 2500.00 CNY 2022/6/1 2026/3/31
Yantai Kangyun Industrial Development
Co. Ltd. 2430.00 CNY 2022/11/15 2026/3/31
Chongqing Lanlv Moma Real Estate
Development Co. Ltd. 18843.00 CNY 2020/11/25 2023/11/24
Sichuan Hongxinchen Real Estate
Development Co. Ltd. 19879.55 CNY 2022/9/15 2026/2/27
Econ Technology 18315.11 CNY 2023/12/20 2026/12/20
Econ Technology 4996.58 CNY 2023/12/21 2026/12/20
Chongqing Liangshan Industrial
Investment Co. Ltd. 5000.00 CNY 2024/9/29 2026/9/27
Chongqing Liangshan Industrial
Investment Co. Ltd. 5000.00 CNY 2024/9/30 2026/9/27
Total 181349.18
(6) Remuneration of key management personnel
Project Amount in the current Amount in the previousperiod (RMB'0000) period (RMB'0000)
Total remuneration
6. Receivables and payables of related parties
(1) Receivables
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
232Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts receivable:
Shenzhen Yaode
Technology Co. Ltd. and 139976261.62 139976261.62 144454581.31 144454581.31
its subsidiaries
HOHO ELECTRICAL &
FURNITURE CO. LIMITED 102413323.31 99166172.76 116261899.92 109061518.07
Chuzhou Hanshang Electric
Appliance Co. Ltd. 99079650.53 839898.16 98177722.38 2002825.54
OCT Enterprises Co. Ltd.and its subsidiaries and 62063194.43 46689703.92 65818264.04 46400209.97
associates
Shenzhen Kanghongxing
Intelligent Technology Co. 37670906.98 37670906.98 38319878.77 38319878.77
Ltd.Korea Electric Group Co.Ltd. and its subsidiaries and 13323766.62 570048.63 27943560.39 570048.63
associates
Anhui Kaikai Shijie E-
commerce Co. Ltd. and its 26435355.98 10257193.02 26436604.92 6116465.89
subsidiaries
Shandong Kangfei
Intelligent Electrical 4466641.58 4313758.17 4466641.58 4130097.83
Appliances Co. Ltd.Shenzhen KONKA E-
display Co. Ltd. and its 870103.34 334771.57 875788.71 388276.97
subsidiaries
Shenzhen Jielunte
Technology Co. Ltd. and
its subsidiaries and 283744.70 27278.93 269304.95 5493.82
associates
Subtotal of other related
parties 9644752.51 669628.42 9361800.98 617441.63
Total 496227701.60 340515622.18 532386047.95 352066838.43
Financing accounts
receivable/Notes
receivable:
Korea Electric Group Co.
2768377.313209127.25
Ltd. and its subsidiaries
Chuzhou Hanshang Electric
41800000.00-
Appliance Co. Ltd.Total 44568377.31 3209127.25
Other receivables:
Konka Huanjia
Environmental Technology 1744736434.49 1744736434.49 1744736434.49 1744736434.49
Co. Ltd.
233Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Chuzhou Kangxin Health
Industry Development Co. 460482883.84 341564138.03 460482883.84 341564138.02
Ltd.Yantai Kangyun Industry
Development Co. Ltd. and 293164911.17 208004608.17 293164911.17 200813312.70
its subsidiaries
Sichuan Hongxinchen Real
Estate Development Co. 260445465.59 260445465.59 260445465.59 260445465.59
Ltd.Dongguan Guankang
Yuhong Investment Co. 254964600.32 33890711.79 254964600.32 33890711.79
Ltd.Chongqing Lanlv Moma
Real Estate Development 236698102.31 236698102.31 236698102.31 236698102.31
Co. Ltd.Sichuan Chengrui Real
Estate Co. Ltd. 189205812.69 189205812.69 189205812.69 189205812.69
Yantai Kangyue Investment
Co. Ltd. 171069706.45 127404906.45 171069706.45 127404906.45
Chongqing Liangshan
Industrial Investment Co. 102863972.62 3061864.38 102616027.38 3026160.28
Ltd.Dai Rongxing 89251531.41 89251531.41 89251531.41 89251531.41
Jiangxi Meiji Enterprise Co.Ltd. 84462640.31 84462640.31 84462640.31 84462640.31
Shenzhen Kanghongxing
Intelligent Technology Co. 39130497.17 39130497.17 39130497.17 39130497.17
Ltd.OCT Enterprises Co. Ltd.and its subsidiaries and 28864936.57 20087770.94 28342867.96 22862402.59
associates
HOHO ELECTRICAL &
FURNITURE CO. LIMITED 2389842.65 2389842.65 2466257.96 2466257.96
Zhu Xinming 1844316.15 418475.33 1844316.15 418475.33
Hu Zehong 126886.80 47343.65 333084.83 165196.50
Subtotal of other related
parties 4833539.59 279811.60 4761997.11 184522.25
Total 3964536080.13 3381079956.96 3963977137.14 3376726567.84
Prepayments:
Puchuang Jiakang
Technology Co. Ltd. 377322.00 377322.00
China Resources Company
Limited and its subsidiaries 129486.15 212448.03
and associates
Kangshengjia Smart
Energy (Zhejiang) Co. Ltd. 67139571.68
OCT Enterprises Co. Ltd.and its subsidiaries and 21424.49
associates
Subtotal of other related
parties 416766.57 278662.13
Total 923574.72 68029428.33
234Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance Beginning balance
Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Other current assets:
Econ Technology Co. Ltd.
242633579.39235601218.08
and its subsidiaries
Total 242633579.39 235601218.08
Contract assets:
OCT Enterprises Co. Ltd.and its subsidiaries and 963764.77 147478.28 963764.77 51725.07
associates
Total 963764.77 147478.28 963764.77 51725.07
(2) Payables
Beginning book
Related party Ending book balance
balance
Accounts payable:
OCT Enterprises Co. Ltd. and its subsidiaries and associates 48919313.00 43601700.08
Kangshengjia Smart Energy (Zhejiang) Co. Ltd. 27626327.68 -
Dongguan Guankang Yuhong Investment Co. Ltd. 19363039.60 2783842.00
Chuzhou Hanshang Electric Appliance Co. Ltd. 6332697.74 4253835.32
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries and
associates 5712346.18 13297141.47
Anhui Kaikai Shijie E-commerce Co. Ltd. and its subsidiaries 4326148.17 4326148.17
HOHO ELECTRICAL & FURNITURE CO. LIMITED 4238776.24 4510072.62
Korea Electric Group Co. Ltd. and its subsidiaries and associates 3780197.02 4309351.22
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 1372382.07 1245087.25
Panxu Intelligence Co. Ltd. and its subsidiaries 53334.46 97686.01
Subtotal of other related parties 2315352.17 1984392.70
Total 124039914.33 80409256.84
Notes payable:
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries and
associates 7896044.77 13596541.72
Korea Electric Group Co. Ltd. and its subsidiaries and associates 3518939.25 4689383.18
Chuzhou Hanshang Electric Appliance Co. Ltd. 2660664.89
Dongguan Kangjia New Materials Technology Co. Ltd. 918483.35
235Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Beginning book
Related party Ending book balance
balance
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus
Technology Co. Ltd. 807859.00
Panxu Intelligence Co. Ltd. and its subsidiaries 352731.61
Total 14075648.91 20364998.86
Contract liabilities/other current liabilities/other non-current
liabilities:
OCT Enterprises Co. Ltd. and its subsidiaries and associates 48314206.58 53849339.85
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus
Technology Co. Ltd. 14552543.67 8417949.44
AUJET INDUSTRY LIMITED 4234856.38 3983759.72
Zhejiang Kangying Semiconductor Technology Co. Ltd. and its
subsidiaries 1604546.07
Chongqing Kangyiqing Technology Co. Ltd. 177798.70 206882.30
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 153017.09
Subtotal of other related parties 307169.69 135288.55
Total 67586575.02 68350783.02
Other payables:
Chuzhou Hanshang Electric Appliance Co. Ltd. 208483191.90 208390348.31
OCT Enterprises Co. Ltd. and its subsidiaries and associates 22815840.88 28045215.53
Guizhou Jiading Mining Management Investment Co. Ltd. 18000000.00 18000000.00
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 4687019.00 5147213.00
Beijing Xuri Shengxing Technology Co. Ltd. 2883619.10 2814638.40
China Resources Company Limited and its subsidiaries and
associates 972004.97 2193246343.33
Dongguan Guankang Yuhong Investment Co. Ltd. 382410.04 15655996.80
Econ Technology Co. Ltd. and its subsidiaries 359175.04 355586.25
Konka Huanjia Environmental Technology Co. Ltd. 4353280.41
Yantai Kangtang Construction Development Co. Ltd. 3000000.00
Kangkong Venture Capital (Shenzhen) Co. Ltd. 2523500.00
Subtotal of other related parties 7602764.25 9165998.82
Total 266186025.18 2490698120.85
Advances from customers:
China Resources Company Limited and its subsidiaries and
associates 64052.75 61285.03
Total 64052.75 61285.03
236Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
XVI. Commitments and contingencies
1. Significant commitments
(1) Capital commitments
Item Ending balance Beginning balance
Contract signed but hasn't been recognized in
financial statements
Commitment on construction and purchase of
137000000.00137000000.00
long-lived assets
Large amount contract 54352776.17 85942612.22
Total 191352776.17 222942612.22
(2) Other Commitments
As of June 30 2026 there were no other significant commitments for the Group to disclose.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) A dispute over an international contract for the sale of goods between Micro Crystal Transfer
Group Ltd. (plaintiff) and Chongqing Optoelectronic Technology Co. Ltd. a subsidiary of the
Company (defendant) involving a disputed amount of RMB36396700. As of the date of issuance of
this report the case was under trial.
(2) A dispute over a construction contract between Shenzhen Sansen Decoration Group Co. Ltd.
(plaintiff) and Shenzhen Konka Semiconductor a subsidiary of the Company (defendant) and
Chongqing Konka a subsidiary of the Company (defendant) involving a subject matter amount of
RMB 25607300. As of the date of issuance of this report the case was under trial.
(3) A dispute over a sales and purchase contract between Jiujiang Baoyong Gas Co. Ltd. (plaintiff)
and Jiangxi High-transparency Substrate a subsidiary of the Company (defendant) involving a
subject matter amount of RMB 91227800. As of the date of issuance of this report the case was
executed in progress.
(4) A dispute over a construction project contract between Nantong Construction Group Co. Ltd.
(Plaintiff) and Haimen Ronghui Real Estate Co. Ltd. (Defendant) Shanghai Rongzhen Enterprise
Management Co. Ltd. (Defendant) the Company (Defendant) and Nantong Konka Technology
Industrial Park Operation Management Co. Ltd. (Defendant) an associated entity of the Company
involving a disputed amount of RMB 99000000. As of the date of issuance of this report the case
was under trial.
237Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(5) A dispute over a construction contract between Sichuan Yisheng Construction Group Co. Ltd.
(plaintiff) and Yibin Konka Industrial Park a subsidiary of the Company (defendant) involving a
subject matter amount of RMB 28061000. As of the date of issuance of this report the case was
under trial.
(6) A dispute over a contract between Shenzhen Oriental Venture Capital Co. Ltd. (plaintiff) and the
Company (defendant) involving a subject matter amount of RMB 752147500. The Company won
both the first-instance and second-instance trials. The plaintiff has filed an application for retrial. As of
the date hereof the case is under retrial review.
(7) A case concerning a dispute over a construction contract between Longxin Construction Group Co.
Ltd. (plaintiff) and Nantong Kanghai Technology Industry Development Co. Ltd. a subsidiary of the
Company (defendant) involving a subject matter amount of RMB 80000000. As of the date of
issuance of this report the case was under trial.
(8) In 2018 to support the financing of Donggang Kangrun Environmental Treatment Co. Ltd.
(hereinafter referred to as "Donggang Kangrun") a subsidiary of Econ Technology Co. Ltd. the
Company issued a support letter to China Construction Bank Corporation Donggang Sub-branch
(hereinafter referred to as "CCB Donggang Sub-branch"). The main contents are as follows:
"Donggang Kangrun is a subsidiary of our company and the project company of the Donggang Urban
Inland River Comprehensive Treatment PPP Project (hereinafter referred to as the 'Project'). Our
company attaches great importance to the Project. Therefore Donggang Kangrun intends to apply to
your bank for a project loan of RMB 975 million to support the fund operation of the Project. In addition
to the applied loan our company will use self-raised funds and other financing channels to support the
Project to ensure its smooth progress and guarantee that Donggang Kangrun will repay the loan from
your bank in full when due." As of June 30 2026 the outstanding principal balance of loans borrowed
by Donggang Kangrun from CCB Donggang Sub-branch amounted to RMB 847000000.
(9) In 2019 to support the financing of Weifang Sihai Kangrun Investment and Operation Co. Ltd.
(hereinafter referred to as "Weifang Kangrun") a subsidiary of Econ Technology Co. Ltd. the
Company issued two support letters to Weifang Branch of Industrial Bank Co. Ltd. (hereinafter
referred to as "CIB Weifang Branch"). The main contents were respectively as follows: "Our company
will use self-raised funds and other financing channels to support the Weifang Binhai Economic
Development Zone Central Urban Area Comprehensive Improvement Project to ensure the smooth
progress of the project and at the same time ensure that Weifang Kangrun can repay your bank's
loan in full on the due date" and "Our company will use self-raised funds to support the Weifang
Binhai Economic and Technological Development Zone Central Urban Area Comprehensive
Improvement Project and ensure that the project capital of Weifang Kangrun is in place on time and in
full." As of June 30 2026 the outstanding loan balance (principal) of Weifang Kangrun to CIB Weifang
Branch was RMB 577851500.
238Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
XVII. Events after the balance sheet date
1. Significant non-adjustment matters
As of the date of issuance of this financial report the Group has no significant non-adjusting matters
that need to be disclosed.
2. Sales return
As of the date of this financial report the Group had no material sales returns.
3. Events after the balance sheet date
As of the date of issuance of this financial report the Group has no other events after the balance
sheet date.
18. Other significant events
As of the date of issuance of this financial report the Group has no other significant matters.XIX. Notes to the main items of the parent company's financial statements
1. Accounts receivable
(1) Accounts receivable listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 2531982018.81 2518870996.93
1-2 years 17060899.32 936172219.27
2-3 years 73781268.94 71304189.74
3-4 years 8957796.43 25395465.05
4-5 years 41693673.64 42024672.61
Over 5 years 875369864.86 857898045.25
Total 3548845522.00 4451665588.85
(2) Listed by withdrawal methods for provision for bad debts
Ending balance
Type
Book balance Provision for bad debts Book value
239Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Provision
Percentage
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 751122071.15 21.17 751061783.14 99.99 60288.01
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 276159766.31 7.78 153593122.20 55.62 122566644.11
Related Party Portfolio 2521563684.54 71.05 2521563684.54
Subtotal of portfolio 2797723450.85 78.83 153593122.20 5.49 2644130328.65
Total 3548845522.00 100.00 904654905.34 25.49 2644190616.66
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 750993030.62 16.87 750932742.61 99.99 60288.01
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 243003431.27 5.46 154701363.19 63.66 88302068.08
Related Party Portfolio 3457669126.96 77.67 3457669126.96
Subtotal of portfolio 3700672558.23 83.13 154701363.19 4.18 3545971195.04
Total 4451665588.85 100.00 905634105.80 20.34 3546031483.05
1） Provision set aside for bad debts of accounts receivable by single item
Beginning balance Ending balance
Reason
Provision s for
Name Provision for bad Provision for bad
Book balance Book balance percentage the
debts debts
(%) provisi
on
240Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Beginning balance Ending balance
Reason
Provision s for
Name Provision for bad Provision for bad
Book balance Book balance percentage the
debts debts
(%) provisi
on
Not
CEFC Shanghai expecte
International 298280558.37 298280558.37 298073128.27 298073128.27 100.00 d to be
Group Limited recover
able
Not
Hongtu
expecte
Sanpower
200000000.00 200000000.00 200000000.00 200000000.00 100.00 d to be
Technology
recover
Co. Ltd.able
Not
Zhongfu
expecte
Tiangong
71289096.65 71289096.65 71289096.65 71289096.65 100.00 d to be
Construction
recover
Group Co. Ltd.able
Not
CCCC First
expecte
Harbor
55438105.00 55438105.00 55438105.00 55438105.00 100.00 d to be
Engineering
recover
Company Ltd.able
Not
China Energy
expecte
(Shanghai)
49993564.16 49993564.16 49993564.16 49993564.16 100.00 d to be
Industrial Co.recover
Ltd.able
Shenzhen Not
Kanghongxing expecte
Intelligent 36211057.55 36211057.55 36211057.55 36211057.55 100.00 d to be
Technology recover
Co. Ltd. able
Expecte
Others 39780648.89 39720360.88 40117119.52 40056831.51 99.85
d to be
241Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Beginning balance Ending balance
Reason
Provision s for
Name Provision for bad Provision for bad
Book balance Book balance percentage the
debts debts
(%) provisi
on
difficult
to
recover
Total 750993030.62 750932742.61 751122071.15 751061783.14 99.99 —
2） Provision for bad debts for accounts receivable made as per portfolio
* In the portfolio accounts receivable of provision for expected credit loss made by aging
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
Within 1 year 123711210.71 2523708.65 2.04
1-2 years 1488099.77 149107.60 10.02
2-3 years 50794.29 11525.22 22.69
3-4 years 2508.00 1627.19 64.88
4-5 years 40439517.00 40439517.00 100.00
Over 5 years 110467636.54 110467636.54 100.00
Total 276159766.31 153593122.20 55.62
* In the portfolio accounts receivable of provision for expected credit loss made by other methods
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
Related Party Portfolio 2521563684.54
Total 2521563684.54
(3) Provision for bad debts accrued recovered or reversed for the current period
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of
905634105.80551037.211530237.67
accounts receivable
Total 905634105.80 551037.21 1530237.67
242Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of
904654905.34
accounts receivable
Total 904654905.34
(4).Actual write-off of accounts receivable for the current period
No accounts receivable were actually written off in the current period.
(5) Top five accounts receivable by the debtor in terms of the ending balance and contract
assets
The total amount of accounts receivable with top five ending balance categorized by debtors in the
current period was RMB 2378554219.75 accounting for 67.02% of the total ending balance of
accounts receivable. The total ending balance of provision for bad debts correspondingly set aside
was RMB 498073128.27.
2. Other receivables
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 390420640.53 394828312.64
Other receivables 6395607991.35 6169721184.70
Total 6786028631.88 6564549497.34
2.1 Dividends receivable
(1) Classification of dividends receivable
Investee Ending balance Beginning balance
Hong Kong Konka Co. Ltd. 110420640.53 114828312.64
Suining Konka Industrial Park Development Co.
280000000.00280000000.00
Ltd.Total 390420640.53 394828312.64
243Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
2.2 Other receivables
(1) Classification of other receivables by nature of payment
Nature of funds Ending book balance Beginning book balance
Intercourse funds with subsidiaries 8154896677.01 7338448596.60
Energy-saving subsidies receivable 141549150.00 141549150.00
Intercourse funds with other related parties 3643659525.57 3643705051.48
Deposit and margin 31544154.65 11316782.23
Others 58658753.52 54245272.51
Total 12030308260.75 11189264852.82
(2) Other receivables disclosed by aging
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 3091193197.99 2468208504.58
1-2 years 2067204784.71 1821365482.14
2-3 years 1724588428.08 2712875647.73
3-4 years 2353253789.84 2087164066.22
4-5 years 896558618.46 193527410.48
Over 5 years 1897509441.67 1906123741.67
Total 12030308260.75 11189264852.82
(3) Disclosure of other receivables by provision method for bad debts
Ending balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 6715213580.00 55.82 5586417529.90 83.19 1128796050.10
item
Provision set aside for
244Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
bad debts by portfolio
Of which: Aging portfolio 43611732.24 0.36 36890141.82 84.59 6721590.42
Low-Risk Portfolio 34958479.12 0.29 11392597.68 32.59 23565881.44
Related Party Portfolio 5236524469.39 43.53 5236524469.39
Subtotal of portfolio 5315094680.75 44.18 48282739.50 0.91 5266811941.25
Total 12030308260.75 100.00 5634700269.40 46.84 6395607991.35
Beginning balance
Book balance Provision for bad debts
Type Provision
Percentage Book value
Amount Amount percentage
(%)
(%)
Provision set aside for
bad debts by the single 5578850648.69 49.86 4974026480.15 89.16 604824168.54
item
Provision set aside for
bad debts by portfolio
Of which: Aging portfolio 39006591.44 0.35 36740977.75 94.19 2265613.69
Low-Risk Portfolio 14968292.40 0.13 8776210.22 58.63 6192082.18
Related Party Portfolio 5556439320.29 49.66 5556439320.29
Subtotal of portfolio 5610414204.13 50.14 45517187.97 0.81 5564897016.16
Total 11189264852.82 100.00 5019543668.12 44.86 6169721184.70
1) Provision for bad debts of other receivables by portfolio
Ending balance
Aging Provision for bad Provision percentage
Book balance
debts (%)
Within 1 year 1568349242.34 332207.07 0.02
1-2 years 1581881281.80 42109.32
245Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Ending balance
Aging Provision for bad Provision percentage
Book balance
debts (%)
2-3 years 268912254.95 165897.84 0.06
3-4 years 1182275028.66 68751.65 0.01
4-5 years 654277365.10 2627008.85 0.40
Over 5 years 59399507.90 45046764.77 75.84
Total 5315094680.75 48282739.50 0.91
2) Provision for bad debts of other receivables by the general expected credit loss model
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 whole outstanding
outstanding maturity
12 months maturity (without
(with credit impairment)
credit impairment)
Balance as of January
39758.9145477429.064974026480.155019543668.12
12026
Balance as of January
1 2026 in the current
period
-- Transfer to Stage II -8573.15 8573.15
-- Transfer to Stage III
-- Reversal to Stage II
-- Reversal to Stage I
Provision for the current
301021.312464530.22612391049.75615156601.28
period
Reversal in this period
Charge-off in the
current period
Write-off in the current
period
Other changes
Balance as of June 30
332207.0747950532.435586417529.905634700269.40
2026
Remarks: the first stage is that credit risk has not increased significantly since initial recognition. For
246Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
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.
(4) Provision for bad debts accrued recovered or reversed for the current period
Changes in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of other
5019543668.12615156601.28
receivables
Total 5019543668.12 615156601.28
(Continued)
Changes in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of other
5634700269.40
receivables
Total 5634700269.40
(5) Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
(6) Other receivables of the top five ending balances collected by debtor
The total amount of other receivables with top five ending balance categorized by debtors in the
current period was RMB 6946936442.59 accounting for 57.75% of the total ending balance of other
receivables. The total ending balance of provision for bad debts correspondingly set aside was RMB
3428122929.01.
247Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
3. Long-term equity investments
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
7828559611.83734385452.937094174158.907825224811.83715180000.007110044811.83
subsidiaries
Investment in
3095557104.762264032106.38831524998.383101020668.932264032106.38836988562.55
associates
Total 10924116716.59 2998417559.31 7925699157.28 10926245480.76 2979212106.38 7947033374.38
(1) Investment in subsidiaries
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Konka Venture 2550000.00 2550000.00
Anhui Konka 122780937.98 122780937.98
Konka Electronic
300000000.00300000000.00
Materials
Konka Unifortune 15300000.00 15300000.00
Dongguan Konka 274783988.91 274783988.91
Konka Europe 3637470.00 3637470.00
Telecommunications
360000000.00360000000.00
Technology
248Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Technology Industry
100000000.00100000000.00
Development
Anhui Tongchuang 779702612.22 779702612.22
Kangjiatong 30749800.00 30749800.00
Pengrun Technology 25500000.00 25500000.00
Beijing Konka
200000000.00200000000.00
Electronics
Konka Circuit 745682721.18 3334800.00 749017521.18
Hong Kong Konka 781828.61 781828.61
Konka Investment 500000000.00 500000000.00
Electronics Technology 1000000000.00 1000000000.00
Shanghai Konka 40000000.00 40000000.00
Jiangxi Konka 689680000.00 689680000.00
Shenzhen Nianhua 30000000.00 30000000.00
Shenzhen Konka
100000000.00100000000.00
Semiconductor
Ji'an Konka 50000.00 50000.00
Suining Konka Industrial
200000000.00200000000.00
Park
Suining Electronic
200000000.00200000000.00
Technological Innovation
249Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Shenzhen Chuangzhi
10000000.0010000000.00
Electrical Appliances
Chongqing
Optoelectronic 1400000000.00 1400000000.00
Technology
Kowin Memory
192520000.00192520000.00
(Shenzhen)
Ningbo Kanghanrui
90000000.0090000000.00
Electric Appliances
Suining Jiarun Property 10000000.00 10000000.00 10000000.00
Yibin Kangrun 67000000.00 67000000.00
Hainan Konka
9205452.939205452.939205452.93
Technology
Konka Cross-border
50000000.0050000000.00
(Hebei)
Konka Central China 30000000.00 30000000.00
Guizhou Kanggui
28000000.0028000000.00
Material Technology
Nantong Kanghai 15300000.00 15300000.00
Jiangxi Konka High-tech
50000000.0050000000.00
Park
250Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Provision for Increase/decrease in this period
Provision for
Beginning balance impairment Ending balance
Investee Additional Decrease in Provision for impairment
(Book value) Beginning Others (Book value)
investment investment impairment Ending balance
balance
Shangrao Konka
Electronic Technology 30000000.00 30000000.00
Innovation
Xi'an Kanghong
12000000.0012000000.00
Technology Industry
Xi'an Konka Intelligent
50000000.0050000000.00
Technology
Songyang Konka
30000000.0030000000.00
Intelligent
Konka North China 30000000.00 30000000.00
Total 7110044811.83 715180000.00 3334800.00 19205452.93 7094174158.90 734385452.93
(2) Investments in associates
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease investment other
(Book value) Beginning
investment Investment recognized by the comprehensive
balance
equity method income
Anhui Kaikai Shijie E-commerce Co. Ltd. 85892934.52
Kunshan Kangsheng Investment
Development Co. Ltd. 35503350.74 -3371200.00
251Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease investment other
(Book value) Beginning
investment Investment recognized by the comprehensive
balance
equity method income
Shaanxi Silk Road Yunqi Intelligent
Technology Co. Ltd. 152670.80 -113422.50
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd. 5158909.06
Shenzhen Zhongkang Beidou Technology
Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Chuzhou Konka Technology Industry
Development Co. Ltd.Chuzhou Kangjin Health Industrial
Development Co. Ltd. 60002343.27 -1974700.00
Nantong Konka Technology Industrial Park
Operation Management Co. Ltd.Chuzhou Kangxin Health Industry
Development Co. Ltd. 4361787.24
Dongguan Guankang Yuhong Investment
Co. Ltd.Econ Technology 708469870.90 279214061.94 -1257918.18
Dongguan Kangjia New Materials
Technology Co. Ltd. 1908012.80
Chongqing ypfun Technology Co. Ltd. 1578447233.41
Yantai Kangyun Industrial Development Co.Ltd.E3 (Hainan) Technology Co. Ltd.Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 2448605.88 -445859.65
Shenzhen KONKA E-display Co. Ltd. 27435255.38 1575000.00
Chongqing Yuanlv Benpao Real Estate Co.Ltd.Shenzhen Kangpeng Digital Technology Co.Ltd. 980300.31 -800.00
252Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Profit or loss of Adjustments to
Beginning balance impairment
Investee Additional Decrease investment other
(Book value) Beginning
investment Investment recognized by the comprehensive
balance
equity method income
Wuhan Kangtang Information Technology
Co. Ltd. 977229.62 206236.16
Sichuan Chengrui Real Estate Co. Ltd.Sichuan Hongxinchen Real Estate
Development Co. Ltd. 2459686.45
Shenzhen Kangyue Industrial Co. Ltd. 230011.61
Konka Huanjia Environmental Technology
Co. Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang)
Co. Ltd. 1018935.65 -80900.00
Total 836988562.55 2264032106.38 -5463564.17
(Continued)
Increase/decrease in this period
Provision for
Cash dividends or Ending balance
Investee Changes in Other Provision for impairment
profits declared to Others (Book value)
Equities impairment Ending balance
be distributed
Anhui Kaikai Shijie E-commerce Co. Ltd. 85892934.52
Kunshan Kangsheng Investment
Development Co. Ltd. 32132150.74
Shaanxi Silk Road Yunqi Intelligent
Technology Co. Ltd. 39248.30
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd. 5158909.06
Shenzhen Zhongkang Beidou Technology
Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
253Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Cash dividends or Ending balance
Investee Changes in Other Provision for impairment
profits declared to Others (Book value)
Equities impairment Ending balance
be distributed
Chuzhou Konka Technology Industry
Development Co. Ltd.Chuzhou Kangjin Health Industrial
Development Co. Ltd. 58027643.27
Nantong Konka Technology Industrial Park
Operation Management Co. Ltd.Chuzhou Kangxin Health Industry
Development Co. Ltd. 4361787.24
Dongguan Guankang Yuhong Investment
Co. Ltd.Econ Technology 707211952.72 279214061.94
Dongguan Kangjia New Materials
Technology Co. Ltd. 1908012.80
Chongqing ypfun Technology Co. Ltd. 1578447233.41
Yantai Kangyun Industrial Development Co.Ltd.E3 (Hainan) Technology Co. Ltd.Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 2002746.23
Shenzhen KONKA E-display Co. Ltd. 29010255.38
Chongqing Yuanlv Benpao Real Estate Co.Ltd.Shenzhen Kangpeng Digital Technology Co.Ltd. 979500.31
Wuhan Kangtang Information Technology
Co. Ltd. 1183465.78
Sichuan Chengrui Real Estate Co. Ltd.Sichuan Hongxinchen Real Estate
Development Co. Ltd. 2459686.45
Shenzhen Kangyue Industrial Co. Ltd. 230011.61
Konka Huanjia Environmental Technology
Co. Ltd. 91800000.00
254Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Increase/decrease in this period
Provision for
Cash dividends or Ending balance
Investee Changes in Other Provision for impairment
profits declared to Others (Book value)
Equities impairment Ending balance
be distributed
Kangrong Jiayuan Technology (Zhejiang)
Co. Ltd. 938035.65
Total 831524998.38 2264032106.38
255Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
4. Operating revenue and operating costs
（1） Operating revenue and cost of sales
Amount in the current period Amount in the previous period
Item
Income Cost Income Cost
Principal
activity 752020199.48 750540545.24 509033511.21 522717237.64
Other
businesses 63847420.34 33989301.66 59938017.36 20535016.58
Total 815867619.82 784529846.90 568971528.57 543252254.22
（2） Information in relation to the trade price apportioned to the residual contract
performance obligation
The amount of revenue corresponding to the performance obligations that had been signed
but not yet performed or not yet completed at the end of the current period was RMB
4494087.19 of which RMB 4494087.19 was expected to be recognized as revenue in 2026.
5. Investment income
Item Amount in the current Amount in the previousperiod period
Long-term equity investment income calculated by the cost
method
Returns on long-term equity investments calculated by the
equity method -5463564.17 -11151203.25
Return on investment arising from the disposal of long-term
equity investments 7970560.10
Investment income from financial assets held for trading
during the holding period 420553.86
Investment income from disposal of financial assets held for
trading -6257897.51 -73011755.91
Interest income from debt investments during the holding
period 2771983.93 1970451.37
Income from the derecognition of financial assets at amortized
cost -226103.98
Conversion of long-term equity investments accounted for by
the equity method to financial assets 655666680.89
Total -8949477.75 581639183.08
20. Supplementary information
1. Breakdown of current non-recurring profit or loss
Descripti
Item Current amount
on
Profit or losses on disposal of non-current assets (including the portion offset for
-324209.55
provisions for asset impairment)
Government grants included in profit and loss of the current period (except for 16168495.38
256Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Descripti
Item Current amount
on
government subsidies that are closely related to the Company's normal
business operation comply with national policies and are enjoyed in accordance
with defined criteria and have a continuing impact on the Company's profit or
loss)
Gains/losses on fair-value changes in financial assets and liabilities held by a
non-financial enterprise as well as on disposal of financial assets and liabilities
64813315.89
(exclusive of the effective portion of hedges that arise in the Company’s ordinary
course of business)
Dispossession surcharge to non-financial institutions included in the current
gains/losses
Gains/ losses on entrusting others with investments or asset management
Gains/losses on loan entrustment 6868213.73
Losses on assets resulted from force majeure such as natural disasters
Reversed portions of impairment allowances for receivables which are tested
individually for impairment
Gains arising from business combination when the investment cost is less than
the recognized fair value of net assets of the investee
Current net gains/losses of subsidiaries acquired in business merger under the
same control from period-beginning to combination date
Gains/losses on non-monetary asset swap
Gains/losses on debt restructuring
Non-recurring expenses incurred by the enterprise as a result of the
discontinuation of a related operating activity such as expenses for relocating
employees
One-time impact on the current gains/losses due to adjustments in tax
accounting and other laws and regulations
One-time recognition of share-based payment expense due to cancellation and
modification of equity incentive plans
Cash-settled share-based payments gains and losses arising from changes in
the fair value of employee compensation payable after the date of exercisability
Gains/losses on change in fair value of investment property subject to follow-up
measurement at fair value method
Gains from transactions at significantly unfair prices
Gains/losses arising from contingencies unrelated to the normal operation of the
Company's business
257Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
Descripti
Item Current amount
on
Custodian fees earned from entrusted operation
Non-operating revenue and expenses other than the above 3352083.44
Other gains/losses that meet the definition of non-recurring gains/losses -40264602.91
Subtotal 50613295.98
Less: Income tax effects 8666238.74
Minority equity effects (after tax) 5483242.75
Total 36463814.49 —
(1) Particulars about other gains/losses that meet the definition of non-recurring gains/losses:
Item Amount Reason
During the Reporting Period the amount of losses
arising from the Company's receivables from
Excessive losses of subsidiaries 14525336.77 subsidiaries with excessive losses was recognized
as "Net income attributable to owners of the parent
company" resulting in non-recurring gains/losses.Interest on the equity repurchase price -54789939.68 During the Reporting Period the Company accruedinterest on the equity repurchase price
(2) The items that are not listed in the Explanatory Announcement No. 1 on Information Disclosure by
Companies Offering Securities to the Public - Non-recurring Profit or Loss (Revised in 2023) but
recognized by the Company as non-recurring profit or loss items and involving significant amounts
and listed non-recurring profit or loss items recognized as recurring profit or loss items
Item Amount Reason
Government grants closely related to the normal
Software tax rebates VAT credits and operation of the Company's business which comply3019917.92
deductions with national policies and are received continuouslybased on a certain standard quota or quantitative
amount
2. Return on net assets and earnings per share
Earnings per share (RMB/share)
Profit for the reporting period Weighted averageReturn on net assets (%) Basic earnings per Diluted earnings per
share share
Net profit attributable to ordinary
shareholders of the parent company Not applicable -0.0718 -0.0718
Net profit attributable to ordinary
shareholders of the parent company
before non-recurring gains and Not applicable -0.0869 -0.0869
losses
3. Differences between accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets between the financial reports disclosed in accordance
258Full Text of 2026 Semi-Annual Report of Konka Group Co. Ltd.
with the International Financial Reporting Standards (IFRS) and the PRC Generally Accepted
Accounting Principles (GAAP)
□ Applicable √ Not applicable
(2) Differences in net profits and net assets between the financial reports disclosed in accordance
with the overseas financial reporting standards and the PRC GAAP
□ Applicable √ Not applicable
(3) Explanations of the reasons for differences between accounting data under domestic and
foreign accounting standards. If adjustments have been made to the differences in data audited
by an overseas auditing firm the name of the said overseas institution shall be specified.□ Applicable √ Not applicable
Konka Group Co. Ltd.Board of Directors
August 28 2026
259
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