KONKAGROUP CO. LTD.INTERIM REPORT 2021

August 20211

Part I Important Notes Table of Contents and Definitions

The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors

supervisors and senior management of Konka Group Co. Ltd. (hereinafter referred to as the

“Company”) hereby guarantee the factuality accuracy and completeness of the contents of

this Report and its summary and shall be jointly and severally liable for any

misrepresentations misleading statements or material omissions therein.Zhou Bin the Company’s legal representative Li Chunlei the Company’s Chief Financial

Officer (CFO) and Guo Zhihua the head of theCompany’s financial department (equivalent

to financial manager) hereby guarantee that the Financial Statements carried in this Report

are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report

and its summary.Any plans for the future or other forward-looking statements mentioned in this Report and its

summary 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 has no interim dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there

be any discrepancies or misunderstandings between the two versions the Chinese versions

shall prevail.Table of Contents

Part I Important Notes Table of Contents and Defin... 2

Part II Corporate Information and Key Financial In.. 10

Part III Management Discussion and Analysis..........13

Part IV Corporate Governance.........................28

Part V Environmental and Social Responsibility...... 30

Part VI Significant Events.......................... 40

Part VII Share Changes and Shareholder Information...62

Part VIII Preferred Shares...........................67

Part IX Corporate Bonds..............................68

Part X Financial Statements..........................73

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 financial department;

(II) The originals of all the Company’s documents and announcements disclosed to the public in the

Reporting Period; and

(III) The documents above are available at the Secretariat of the Board.Definitions

Term Definition

The “Company” the “Group” “Konka Group” or Konka Group Co. Ltd. and its consolidated subsidiaries except where the

“we” context otherwise requires

Anhui Zhilian Anhui Konka Zhilian E-Commerce Co. Ltd.Haimen Konka Haimen Konka Smart Technology Co. Ltd.Chengdu Konka Smart Chengdu Konka Smart Technology Co. Ltd.Chengdu Konka Electronic Chengdu Konka Electronic Co. Ltd.Nantong Hongdin Nantong Hongdin Smart Technology Co. Ltd.Youzhihui Shenzhen Youzhihui Technology Co. Ltd.Xiaojia Technology Shenzhen Xiaojia Technology Co. Ltd.Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co. Ltd.Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co. Ltd.Nanjing Konka Nanjing Konka Electronics Co. Ltd.Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co. Ltd.Xi'an Huasheng Xi'an Huasheng Jiacheng Real Estate Co. Ltd.XingDa HongYe GuangDong XingDa HongYe Electronic Co. Ltd.Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB Co. Ltd.Konka Circuit Shenzhen Konka Circuit Co. Ltd.Konka Soft Electronic Suining Konka Soft Electronic Technology Co. Ltd.Konka Hongye Electronics Suining Konka Hongye Electronics Co. Ltd.Boluo Precision Boluo Konka Precision Technology Co. Ltd.Boluo Konka Boluo Konka PCB Co. Ltd.Xiamen Dalong Xiamen Dalong Trading Co. Ltd.Electronics Technology Shenzhen Konka Electronics Technology Co. Ltd.Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co. Ltd.Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co. Ltd.Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co. Ltd.Frestec Refrigeration Henan Frestec Refrigeration Appliance Co. Ltd.Frestec Electrical Appliances Henan Frestec Electrical Appliances Co. Ltd.Frestec Household Appliances Henan Frestec Household Appliances Co. Ltd.Frestec Smart Home Henan Frestec Smart Home Technology Co. Ltd.Konka Investment Shenzhen Konka Investment Holdings Co. Ltd.Yibin Konka Technology Park Yibin Konka Technology Park Operation Co. Ltd.Konka Capital Shenzhen Konka Capital Equity Investment Management Co. Ltd.Industrial Park Development Shenzhen Konka Industrial Park Development Co. Ltd.Konka Suiyong Konka Suiyong Investment (Shenzhen) Co. Ltd.Kangquan Enterprise Shenzhen Kangquan Enterprise Management Consulting Co. Ltd.Konka Suyuan Shenzhen Konka Suyuan Investment Industrial Co. Ltd.Shengxing Industrial Shenzhen Konka Shengxing Industrial Co. Ltd.Zhitong Technology Shenzhen Konka Zhitong Technology Co. Ltd.Konka Factoring Konka Factoring (Shenzhen) Co. Ltd.Beijing Konka Electronic Beijing Konka Electronic Co. Ltd.Konka Leasing Konka Financial Leasing (Tianjin) Co. Ltd.Suining Konka Industrial Park Suining Konka Industrial Park Development Co. Ltd.Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co. Ltd.Shanghai Konka Shanghai Konka Industrial Co. Ltd.Yantai Kangjin Yantai Kangjin Technology Development Co. Ltd.Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co. Ltd.Sichuan Konka Sichuan Konka Smart Terminal Technology Co. Ltd

Yibin Smart Yibin Konka Smart Technology Co. Ltd.Shenzhen KONSEMI Shenzhen KONSEMI Co. Ltd.Chongqing Konka Chongqing Konka Technology Development Co. Ltd.Hefei KONSEMI Hefei KONSEMI Storage Technology Co. Ltd.Yihe Electronic Hefei Yihe Electronic Co. Ltd.Shenzhen Huiying Technology Shenzhen Konka Huiying Technology Co. Ltd.Chongqing Huiying Technology Chongqing Konka Huiying Technology Co. Ltd.Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co. Limited

Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co. Limited

Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd.Industrial and Trade Technology Konka Industrial and Trade Technology (Shenzhen) Co. Ltd.Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co. Ltd.Konka Huazhong Konka Huazhong (Hunan) Technology Co. Ltd.Wankaida Shenzhen Wankaida Science and Technology Co. Ltd.Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.Suining Jiarun Property Suining Jiarun Property Co. Ltd.Konka Electrical Appliances Shenzhen Konka Electrical Appliances Co. Ltd.E2info Shenzhen E2info Network Technology Co. Ltd.E2info (Hainan) E2info (Hainan) Network Technology Co. Ltd.Anhui Konka Anhui Konka Electronic Co. Ltd.Kangzhi Trade Anhui Kangzhi Trade Co. Ltd.Telecommunication Technology Shenzhen Konka Telecommunications Technology Co. Ltd.Konka Mobility Konka Mobility Co. Limited

Dongguan Packing Dongguan Konka Packing Materials Co. Ltd.Dongguan Konka Dongguan Konka Electronic Co. Ltd.Suining Konka Smart Suining Konka Smart Technology Co. Ltd.Chongqing Optoelectronic Technology Research

Chongqing Konka Optoelectronic Technology Research Institute Co. Ltd.Institute

Yibin Kangrun Yibin Kangrun Environmental Technology Co. Ltd.Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd.Yibin Kangrun Environmental Protection Yibin Kangrun Environmental Protection Power Generation Co. Ltd.Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co. Ltd.Jiangxi Konka Jiangxi Konka New Material Technology Co. Ltd.Jiangxi High Transparent Substrate (formerly Jiangxi High Transparent Substrate Material Technology Co. Ltd. (formerly

known as “Nano-Grystallized Glass”) known as “Jiangxi Golden Phoenix Nano-Grystallized Glass Co. Ltd.”)

Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co. Ltd.Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co. Ltd.Konka Huanjia Konka Huanjia Environmental Technology Co. Ltd.Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co. Ltd.Econ Technology Shandong Econ Technology Co. Ltd.Econ Environmental Engineering Econ Environmental Engineering Co. Ltd.Beijing Econ Beijing Econ Runfeng Technology Co. Ltd.Binzhou Econ Zhongke Binzhou Econ Zhongke Environmental Technology Co. Ltd.Dayi Kangrun Water Dayi Kangrun Water Co. Ltd.Tingyuan Environmental Tingyuan Environmental Technology (Shanghai) Co. Ltd.Shanghai Jiyi Shanghai Jiyi Environmental Technology Co. Ltd.Kangrunhong Environmental Kangrunhong Environmental Technology (Yantai) Co. Ltd.Donggang Kangrun Donggang Kangrun Environmental Management Co. Ltd.Gaoping Kangrun Gaoping Kangrun Environmental Protection & Water Co. Ltd.Xi’an Kangrun Xi’an Gaoling Kangrun Environmental Engineering Co. Ltd.Changning Kangrun Changning Kangrun Water Co. Ltd.Lushan Kangrun Environmental Lushan Kangrun Environmental Management Co. Ltd.Tongchuan Kangrun Honghui Tongchuan Kangrun Honghui Environmental Management Co. Ltd.Rushan Econ Rushan Econ Water Environment Management Co. Ltd.Mengcheng Kangrun Mengcheng Kangrun Anjian Water Co. Ltd.Chongzhou Kangrun Chongzhou Kangrun Environment Co. Ltd.Suining Pengxi Kangrun Suining Pengxi Kangrun Environmental Management Co. Ltd.Funan Kangrun Water Funan Kangrun Water Co. Ltd.Subei Kangrun Water Subei Mongol Autonomous County Kangrun Water Co. Ltd.Linfen Kangrun Linfen Kangrun Jinze Water Supply Co. Ltd.Wuhan Runyuan Wastewater Wuhan Runyuan Wastewater Treatment Co. Ltd.Binzhou Weiyijie Binzhou Weiyijie Environmental Technology Co. Ltd.Binzhou Beihai Jingmai Binzhou Beihai Jingmai Industrial Development Co. Ltd.Chunzhiran Yantai Chunzhiran Environmental Technology Co. Ltd.Lairun Holding Laizhou Lairun Holding Co. Ltd.Binhai Wastewater Laizhou Binhai Wastewater Treatment Co. Ltd.Lairun Environmental Protection Laizhou Lairun Environmental Protection Co. Ltd.Lairun Wastewater Laizhou Lairun Wastewater Treatment Co. Ltd.Weifang Sihai Kangrun Weifang Sihai Kangrun Investment Operation Co. Ltd.Xixian Kangrun Xixian Kangrun Xijian Water Environment Development Co. Ltd.Ankang Kangrun Ankang Kangrun Xinheng Water Environment Co. Ltd.Bokang Renewable Bokang Renewable Resources (Yantai) Co. Ltd.Kangruncheng Environmental Technology Kangruncheng Environmental Technology (Yantai) Co. Ltd.Shaanxi Konka Intelligent Shaanxi Konka Intelligent Appliance Co. Ltd.Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co. Ltd.Jiaxin Technology Jiaxin Technology Co. Ltd.Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd.Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co. Ltd.Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co. Ltd.Chongqing Kanglei Optoelectronic Chongqing Kanglei Optoelectronic Technology Co. Ltd.Henan Kangxin Property Henan Kangxin Property Co. Ltd.Konka Unifortune Shenzhen Konka Unifortune Technology Co. Ltd.Jiali International Jiali International (Hong Kong) Limited

Kangjiatong Sichuan Kangjiatong Technology Co. Ltd.Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co. Ltd.Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co. Ltd.Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd.Yantai Laikang Yantai Laikang Industrial Development Co. Ltd.Konka Material Hainan Konka Material Technology Co. Ltd.Konka Ventures Konka Ventures Development (Shenzhen) Co. Ltd.Yibin Konka Incubator Yibin Konka Incubator Management Co. Ltd.Yantai Konka Yantai Konka Healthcare Enterprise Service Co. Ltd.Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co. Ltd.Konka Enterprise Service Guiyang Konka Enterprise Service Co. Ltd.Chuanghui Smart Nanjing Chuanghui Smart Technology Co. Ltd.Konka Eco-Development Shenzhen Konka Eco-Development Investment Co. Ltd.Shenzhen Kangxin Property Shenzhen Kangxin Property Co. Ltd.Henan Kanghan Property Henan Kanghan Property Co. Ltd.Konka Europe Konka (Europe) Co. Ltd.Hong Kong Konka Hong Kong Konka Limited

Kangxin Semiconductor Kangxin Semiconductor (Yantai) Co. Ltd.Hongdin Trading Hongdin International Trading Limited

Konka North America Konka North America LLC

Kanghao Technology Kanghao Technology Co. Ltd.Hongdin Invest Hongdin Invest Development Limited

Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co. Limited

Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies (Shenzhen) Co. Limited

(Shenzhen)

Hefei Chain Kingdom Memory Technologies Hefei Chain Kingdom Memory Technologies Co. Limited

Konka Smartech Konka Smartech Limited

Hongjet Hongjet (Hong Kong) Company Limited

Yantai Kangyun Yantai Kangyun Industrial Development Co. Ltd.Yantai Kangyun Property Yantai Kangyun Property Development Co. Ltd.CSRC The China Securities Regulatory Commission

SZSE The Shenzhen Stock Exchange

CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission

Expressed in the Chinese currency of Renminbi expressed in tens of thousands

RMB RMB’0000 RMB’00000000

of Renminbi expressed in hundreds of millions of Renminbi

Part II Corporate Information and Key Financial Information

I Corporate Information

Stock name Konka Group-A Konka Group-B Stock code 000016 200016

Changed stock name (if any) N/A

Stock exchange for stock listing Shenzhen Stock Exchange

Company name in Chinese 康佳集团股份有限公司

Abbr. (if any) 康佳集团

Company name in English (if

KONKAGROUP CO.LTD

any)

Abbr. (if any) KONKAGROUP

Legal representative Zhou Bin

II Contact Information

Board Secretary Securities Representative

Name Wu Yongjun Miao Leiqiang

Board Secretariat 24/F Konka R&D Center 28 Keji Board Secretariat 24/F Konka R&D Center 28 Keji

South Twelfth Road Science and Technology Park South Twelfth Road Science and Technology Park

Address

Yuehai Street Nanshan District Shenzhen Yuehai Street Nanshan District Shenzhen

Guangdong Province China Guangdong Province China

Tel. 0755-26609138 0755-26609138

Fax 0755-26601139 0755-26601139

Email address szkonka@konka.com szkonka@konka.com

III Other Information

1. Contact Information of the Company

Indicate by tick mark whether any change occurred to the registered address office address and

their zip codes website address and email address of the Company in the Reporting Period.□ Applicable √ Not applicable

No change occurred to the said information in the Reporting Period which can be found in the 2020

Annual Report.2. Media for Information Disclosure and Place where this Report is Lodged

Indicate by tick mark whether any change occurred to the information disclosure media and the

place for lodging the Company’s periodic reports in the Reporting Period.□ Applicable √ Not applicable

The newspapers designated by the Company for information disclosure the website designated by

the CSRC for disclosing the Company’s periodic reports and the place for lodging such reports did

not change in the Reporting Period. The said information can be found in the 2020 Annual Report.IV Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No

H1 2021 H1 2020 Change (%)

Operating revenue (RMB) 21810161873.08 17524183896.74 24.46%

Net profit attributable to the listed

85449919.57 94701792.63 -9.77%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -710124637.85 -650010495.47 -9.25%

exceptional gains and losses (RMB)

Net cash generated from/used in

-1284761222.03 -1076366927.48 -19.36%

operating activities (RMB)

Basic earnings per share (RMB/share) 0.0355 0.0393 -9.67%

Diluted earnings per share (RMB/share) 0.0355 0.0393 -9.67%

Weighted average return on equity (%) 1.01% 1.16% -0.15%

30 June 2021 31 December 2020 Change (%)

Total assets (RMB) 51648378528.10 49876267493.61 3.55%

Equity attributable to the listed

8276742905.90 8428640176.97 -1.80%

company’s shareholders (RMB)

V Accounting Data Differences under China’s Accounting Standards for Business Enterprises

(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting

Standards

1. Net Profit and Equity under CAS and IFRS

□Applicable √ Not applicable

No such differences for the Reporting Period.2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards

□Applicable √ Not applicable

No such differences for the Reporting Period.VI Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Amount Note

Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 268231018.80

Government subsidies charged to current profit or loss (exclusive of government subsidies

given in the Company’s ordinary course of business at fixed quotas or amounts as per the 714611090.13

government’s uniform standards)

Gain or loss on fair-value changes in trading and derivative financial assets and liabilities &

income from disposal of trading and derivative financial assets and liabilities and investments

74929272.98

in other debt obligations (exclusive of the effective portion of hedges that arise in the

Company’s ordinary course of business)

Gain or loss on loan entrustments 36464688.55

Non-operating income and expense other than the above 15023790.96

Less: Income tax effects 229844293.22

Non-controlling interests effects (net of tax) 83841010.78

Total 795574557.42

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or

listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering

Their Securities to the Public—Exceptional Gain/Loss Items:

√ Applicable □ Not applicable

Item Amount involved (RMB) Reason

Government subsidies given in the Company’s ordinary course of

Tax rebates on software 6085265.89 business at fixed quotas or amounts as per government’s uniform

standards

Part III Management Discussion and Analysis

I Principal Activity of the Company in the Reporting Period

(I) The Consumer Electronic Division

This division primarily comprises the multimedia sub-division and the white goods sub-division

with details as follows:

1. The Multimedia Sub-Division

The Company provides multimedia products and services including colour TVs and Internet TV

services for both domestic and overseas markets.The domestic sales of the Company’s colour TVs are realized mainly through B2B

(Business-to-Business) and B2C (Business-to-Consumer) with its branch companies business

departments and after-sales maintenance points operating across the country. And the Company

profits from the margins between the costs and the selling prices of its colour TVs.As for selling its colour TVs abroad the Company mainly relies on B2B. Its colour TVs are sold to

Asia Pacific Middle East Central & South America East Europe etc. And operating profit source

is also the differences between the costs and the selling prices of its colour TVs.Internet business is based on the intelligent TV terminals sold by our company. It mainly carries out

three aspects of business. Firstly it works with other Internet companies to provide end users with

among other content video educational music medical and game content to generate earnings.Secondly it analyses user behaviours and offer certain free interactive services to increase

attractiveness to users promote its brand and stimulate desire for its hardware products. Finally it is

trying to build an Internet TV platform with tens of millions of users on which it will profit through

commercial and application distribution. This Internet TV business is key to the Company’s

Internet-oriented transformation and upgrade to a development model of “hardware + software” and

“smart TV + end users”.According to All View Cloud (AVC) in the first half of 2021 (2021H1) driven by factors including

the short supply of chips and panels and increasing supply prices rising average retail prices

decreased user loyalty and product homogenization in terms of the Chinese color TV market

17.81 million sets were sold accumulatively down by 14.7% year-on-year (YoY). The sales

amounted to RMB59.4 billion up by 15.1% YoY.2. The White Goods Sub-Division

The white goods produced by the Company mainly include refrigerators washing machines air

conditioners freezers etc. which are sold through B2B and B2C mainly to the domestic market.And the Company profits from the margins between the costs and the selling prices of its white

goods. The Company strengthened the foundation of our white goods brands through the acquisition

of the Frestec brand. The Company also optimized the internal R&D production procurement

sales and services processes and integrated the external channel resources to enable channel sharing

between the upstream procurement processes and downstream sales processes. By taking advantage

of this opportunity the Company improved the product and sales structure and enhanced the

management of online channels.With respect to white goods AVC data demonstrate that due to a low base in the same period of last

year and the increase in upstream costs the retail sales reached RMB176.7 billion in 2021H1 up by

13.3% YoY. 65.75 million sets were sold with an increase of 4.4% YoY. Specifically the retail sales

of air-conditioners dropped by 5.7% while those of refrigerators grew by 5.9%. The YoY increases

in the retail sales of freezers washing machines and clothes dryers were prominent.(II) The Industry Trade Business

In the industry trade business the Company benefits from purchasing and processing IC chips LC

D screens etc. which are raw materials in its traditional core business from upstream suppliers and

selling them to downstream customers. The industry trade business can help the Company establish

good relationships with its upstream suppliers and downstream customers and keep it informed of

prices of the materials used in its production for better cost control over its existing products.Additionally it is able to facilitate the development of the semiconductor business by helping

accumulate customer resources for the semiconductor and chip business provide sales channels

and achieve accurate matching of market demand with a shortened product development period and

a lower risk of mismatching of R&D and market demand.(III) The Environmental Protection Division

Currently this business focuses on water treatment recycling of renewable resources and the new

material of glass ceramic. Water engineering PPP (Public-Private Partnership) projects are

undertaken under BOT (Build-Operate-Transfer) or EPC (Energy Performance Contracting) models.Renewable resources are collected sorted processed distributed and sold.The Plan for Urban Sewage Treatment and Recycling for "14th Five-Year Plan" Period jointly

issued by the National Development and Reform Commission (NDRC) and the Ministry of Housing

and Urban-Rural Development (MOHURD) highlighted the main tasks in the environmental

protection industry for the 14th Five-Year Plan period including improving the coordinated

mechanism for water pollution prevention and control comprehensively controlling key basins and

lakes urban water bodies and offshore areas and pushing forward the protection and restoration of

beautiful rivers and lakes. The market capacity of China's sewage treatment industry was expanded

steadily in the past three years thanks to the all-round support including the strong support of

national policies growing capital input and constant innovation of technologies and processes.Looking ahead along with the accelerating urbanization and continuous industry progress the

quantity of wastewater effluent will keep rising and the sewage treatment demand will be further

released. The water pollution prevention and control industry is considered a promising industry.(IV) The Semi-Conductor Division

Currently the Company is engaged in storage optoelectronics etc. with respect to the

semi-conductor business. In storage the Company primarily designs and markets master storage

chips and engage in packaging and testing of storage products. In optoelectronics the Company

primarily develops Micro LED-related products.II Core Competitiveness Analysis

The Company’s core competitiveness lies in its R&D ability brand marketing network and humanresources. It has developed a three-level R&D system of “Konka Research Institute-MultimediaR&D Centre-specialized design institutes” established artificial intelligence internet of things

comprehensive laboratory and 5g Ultra HD laboratory with major universities or scientific research

institutions established academician workstation and built a technology research alliance matching

the industrial layout with nearly 100 core key technologies and about 150 talents The company has

a R & D team of more than 20 people and has introduced two projects of micro led and memory

master chip with more than 100 industry technical talents. In terms of brand the company

continues to promote brand strategy construction system construction image construction and

cultural construction focuses on improving the scientific and international image of the enterprise

strengthens the brand status has a certain brand awareness and reputation in the consumer group

and has good brand credit in banks and other financing channels. In terms of marketing channels

the company innovates channel reform cooperates online and offline for win-win results and

strives for development at home and abroad. Offline channel the company has more than 40

branches more than 200 offices more than 3000 after-sales service stores in all provinces and cities

of China and the marketing and service network is all over the country; online channel the

company has settled in tmall Jingdong Suning vipshop and other mainstream e-commerce

platforms to innovate and develop live e-commerce business and seek a new growth pole for

business development; overseas channel the company The company's business covers Latin

America Europe Asia Pacific and other countries and regions with a sound marketing network.The company has many years of experience in senior management and executive team.III Analysis of Main Businesses

(I) Overview

In the Reporting Period the Company adhered to the development strategy integrating "technology

+ industry + industrial park" and closely centered on the new mainline of "semiconductor + new

consumer electronics (CE) + industrial park". It grasped the driving force of technology explored

the value of the industry and regarded industrial parks as a carrier and platform. In addition the

Company earnestly conducted reforms transformation and upgrading. In line with its strategic

planning the Company mainly carried out the following tasks:

1. The Company has continuously raised its R&D input and technology innovation. In terms of

Micro LEDs it has built a whole-procedure Micro LED R&D and production line and launched

Micro LEDs with small spacing applied to wearables flexible Micro LEDs and 8K commercial

Micro LEDs. Meanwhile the hybrid mass transfer technology developed by the company has

reached the advanced level in the industry in both transfer efficiency and yield. Currently the

Company has completed the small-lot trial production of Micro LED chips and the small- and

medium-lot trial production of Mini LED chips. Furthermore the Company won the Second Prize

of Guangdong Science and Technology Progress Award by jointly completing the New-generation

Intelligent Video Business System and Industrialization the Third Prize of Anhui Science and

Technology Progress Award by jointly completing the Key Technology R&D and Industrialization

of New Refrigerators Based on Multi-field Coupling and the 2020 Shenzhen Patent Award for its

LED-based Multi-functional Control System.2. In the Reporting Period the Company perfected and promoted the traditional CE business by

"advocating high-end brands localize overseas business and utilize intelligent and diversified

manufacturing" and vigorously conducted quality projects. Additionally it closely followed market

demands quickly optimized and upgraded products and launched APHAEA OLED V5 Series TVs

and the K Freshness Series Long Freshness-keeping Refrigerator.3. The Company integrated industry with cities and homes strove to expand new sci-tech parks

give full play to the industrial cluster effect and drive regional upgrading in accordance with the

development strategy of "technology + industry + industrial park" based on the development of the

sci-tech industry. In the Reporting Period the Company successively launched the construction

projects of the Konka intelligent household appliance headquarters and the Central China

headquarters in Xi'an and Changsha and promoted and completed relevant sci-tech parks in

conformity with high requirements standards and quality. In the meantime it kept strengthening

investment attraction project construction post-lending management and park operations

gradually formed its park brands and formulated park operation standards with its own

characteristics.4. In the Reporting Period the Company maintained a growth momentum in the business proved

by its YoY increase of 24.46% in operating revenue.(II) Year-on-year changes in key financial data:

Unit: RMB

H1 2021 H1 2020 Change (%) Main reason for change

Operating revenue 21810161873.08 17524183896.74 24.46% As the domestic pandemic

Cost of sales was gradually under20817175713.78 16268993432.88 27.96%

control and the industry

rebounded business was

gradually back to normal.The company strictly

Selling expense 667662036.47 969224381.98 -31.11% controls the publicity fee

and channel fee.Administrative expense 359053667.07 440915780.44 -18.57%

Finance costs 459415782.71 387040866.75 18.70%

Income tax expense 84263268.37 73425522.47 14.76%

R&D investments 284663467.26 258049586.29 10.31%

Net cash generated from/used in

-1284761222.03 -1076366927.48 -19.36%

operating activities

Net cash generated from/used in Increase in cash payments

-1785387038.28 -142693107.96 -1151.21%

investing activities for investments

Net cash generated from/used in Decrease in debt

3939565440.45 1256220908.63 213.60%

financing activities repayments

Mainly due to the net

Net increase in cash and cash

861929112.82 44203902.08 1849.89% inflow of cash flow from

equivalents

financing activities.Material changes to the profit structure or sources of the Company in the Reporting Period:

□ Applicable √ Not applicable

No such changes.Breakdown of operating revenue:

Unit: RMB

H1 2021 H1 2020

As % of total As % of total

Change (%)

Operating revenue operating revenue Operating revenue operating revenue

(%) (%)

Total 21810161873.08 100% 17524183896.74 100% 24.46%

By operating division

Electronics 6262070661.11 28.71% 5944882118.18 33.92% 5.34%

Industry trade 12184495984.54 55.87% 9566197970.86 54.59% 27.37%

Environmental

2724186133.96 12.49% 1498623593.33 8.55% 81.78%

business

Semiconductor 241973760.06 1.11% 223849167.50 1.28% 8.10%

Other 397435333.41 1.82% 290631046.87 1.66% 36.75%

By product category

Color TVs 3190601881.06 14.63% 3218278547.14 18.36% -0.86%

White goods 1752194252.46 8.03% 1918628399.97 10.95% -8.67%

Industry trade 12184495984.54 55.87% 9566197970.86 54.59% 27.37%

Environmental

2724186133.96 12.49% 1498623593.33 8.55% 81.78%

business

Semiconductor 241973760.06 1.11% 223849167.50 1.28% 8.10%

Other 1716709861.00 7.87% 1098606217.94 6.27% 56.26%

By operating segment

Overseas 11317853852.95 51.89% 10681530016.92 60.95% 5.96%

Domestic 10492308020.13 48.11% 6842653879.82 39.05% 53.34%

Operating division product category or operating segment contributing over 10% of operating

revenue or operating profit:

√ Applicable □ Not applicable

Unit: RMB

Gross YoY change in YoY change in

YoY change in

Operating revenue Cost of sales profit operating revenue gross profit

cost of sales (%)

margin (%) margin (%)

By operating division

Electronics 6262070661.11 5762383881.2 7.98% 5.34% 13.09% -6.31%

Industry trade 12184495984.54 12079110369.50 0.86% 27.37% 28.19% -0.64%

Environmental

2724186133.96 2439448446.23 10.45% 81.78% 82.34% -0.28%

business

By product category

Color TVs 3190601881.06 3017183364.20 5.44% -0.86% 10.00% -9.33%

White goods 1752194252.46 1608490566.46 8.20% -8.67% -2.57% -5.75%

Environmental

2724186133.96 2439448446.23 10.45% 81.78% 82.34% -0.28%

business

Industry trade 12184495984.54 12079110369.50 0.86% 27.37% 28.19% -0.64%

By operating segment

Domestic 10492308020.13 9663603370.15 7.90% 53.34% 67.18% -7.63%

Overseas 11317853852.95 11153572343.63 1.45% 5.96% 6.34% -0.36%

Core business data of the prior year restated according to the changed statistical caliber for the

Reporting Period:

□ Applicable √ Not applicable

Any over 30% YoYmovements in the data above and why:

√ Applicable □ Not applicable

The change in revenue of the environmental business was primarily driven by growth in revenue

from environmental engineering and steel scrap.The change in domestic revenue was primarily because as the domestic pandemic was gradually

under control and the industry rebounded business was gradually back to normal.IV Analysis of Non-Core Businesses

√ Applicable □ Not applicable

Unit: RMB

As % of total

Amount Source/Reason Recurrent or not

profit

Return on Transfer of equity investments in certain

322244312.89 184.12% Not recurrent

investment subsidiaries in the period

Gain/loss on

40362513.73 23.06% Not recurrent

changes in fair value

Asset impairments -29538732.82 -16.88% Not recurrent

Non-operating

21618277.79 12.35% Not recurrent

income

Non-operating

6793873.14 3.88% Not recurrent

expense

V Analysis of Assets and Liabilities

1. Material Changes in Asset Composition

Unit: RMB

30 June 2021 31 December 2020 Change in

Reason for

As % of total As % of total percentage

Amount Amount material change

assets assets (%)

Monetary

5808945725.97 11.25% 5431530180.90 10.89% 0.36%

assets

Accounts

4549591026.59 8.81% 3900897623.59 7.82% 0.99%

receivable

Contract assets 3278002380.34 6.35% 2870006710.39 5.75% 0.60%

Inventories 5159261206.91 9.99% 4521300677.41 9.07% 0.92%

Investment

517599145.62 1.00% 538585668.29 1.08% -0.08%

property

Long-term

equity 4465804131.62 8.65% 4375833584.65 8.77% -0.12%

investments

Fixed assets 3355378019.70 6.50% 3178642017.84 6.37% 0.13%

Construction in

10099450528.06 19.55% 9236643931.68 18.52% 1.03%

progress

Right-of-use

91722023.03 0.18% -

assets

Short-term

10660328520.00 20.64% 10990550475.78 22.04% -1.40%

borrowings

Contract

809414528.15 1.57% 1217367735.94 2.44% -0.87%

liabilities

Long-term

7881025148.48 15.26% 5964748997.54 11.96% 3.30%

borrowings

Lease

68784148.21 0.13% -

liabilities

Current portion

of non-current 4327184538.69 8.38% 376896566.29 0.76% 7.62%

liabilities

Bonds payable 2992708333.32 5.79% 4993212788.32 10.01% -4.22%

2. Major Assets Overseas

□Applicable √ Not applicable

3. Assets and Liabilities at Fair Value

√ Applicable □ Not applicable

Unit: RMB

Impair

ment

Gain/loss on Cumulative Oth

allowa Purchased

fair-value fair-value Sold in the er

Beginning nce for in the Ending

Item changes in changes Reporting cha

amount the Reporting amount

the Reporting charged to Period nge

Report Period

Period equity s

ing

Period

Financial assets

1. Trading

financial assets

(derivative 618249541.66 3691020.84 621940562.50

financial assets

excluded)

2. Derivative

financial assets

3. Other debt

investments

4. Investments

in other equity 25343293.16 25343293.16

instruments

Subtotal of

643592834.82 3691020.84 621940562.50 25343293.16

financial assets

Investment

property

Productive

living assets

Others 1962211994.20 6010580.92 326778896.86 141990945.19 2153010526.79

Total of the

2605804829.02 9701601.76 326778896.86 763931507.69 2178353819.95

above

Financial

liabilities

Other changes

Unit: RMB

Impairme

Gain/loss on

Cumulative nt Oth

fair-value Purchased in

Beginning fair-value allowance Sold in the er

Item changes in the Reporting Ending amount

amount changes charged for the Reporting Period chan

the Reporting Period

to equity Reporting ges

Period

Period

Other non-current

1878154796.76 6010580.92 215403755.99 57933747.75 2041635385.92

financial assets

Receivables

84057197.44 111375140.87 84057197.44 111375140.87

financing

Significant changes to the measurement attributes of the major assets in the Reporting Period:

□ Yes √ No

4. Restricted Asset Rights as at the Period-End

Ending carrying value

Item Reason for restriction

(RMB)

Among them RMB543742698.80 is margin deposit pledge is used for borrowing or

issuing bank acceptance bill RMB34559081.12 is financial supervision account fund;

Monetary assets 648960499.91RMB63213179.74 is fixed deposit that can not be withdrawn in advance;

RMB7445540.25 is restricted due to other reasons.The Company uses the bank acceptance bill with book value of RMB 693159230.21 as

Notes

693159230.21pledge for comprehensive financing business such as issuing bank acceptance bill letter

receivable of credit letter of guarantee trade financing etc.Investment

140612795.31As collateral for loan

property

Fixed assets 687463055.62As collateral for loan finance lease and guarantee

Construction in

317974560.85As collateral for loan

progress

Intangible

397262395.64As collateral for loan finance lease and guarantee

assets

Long-term

350937230.14As pledge for loan

receivables

Total 3236369767.68

VI Investments Made

1. Total Investment Amount

√ Applicable □ Not applicable

Total investment amount in the Total investment amount in the same

Change

Reporting Period (RMB) period of last year (RMB)

2768943435.03 1709994661.79 61.93%

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

reason for

not

Inves Input Accumulat

Est Accumulat meeting

tmen Fixed Indust amount ive actual Capit Pr

im ive Disclosure Disclosur

Item t assets ry in the input al og

ate realized the

investme involv Reporti amount as resou re d revenues date (if e index (ifmeth schedule

od nt or not ed ng of the rces ss

rev

en as of the any) any)Period period-end ues period-end and

expected

revenues

Dongguan Electr

Self-f

Konka Self- onic 22844 2418645 11 March

Yes unde N/A

Intelligent build indust 500.00 00.00 2017

d http://ww

Industrial Park ry w.cninfo.c

Suining Konka Electr om.cn/ne

Self-f

Electronic Self- onic 80752 2665373 17 October w/index

Yes unde N/A

Technology build indust 162.46 04.53 2018

d

Industrial Park ry

Konka Self- Yes Electr 119214 6024159 Self-f N/A 25

Chuzhou Smart build onic 464.67 39.67 unde December

Appliances and indust d 2018

Equipment ry

Industrial Park

Chongqing

Electr

Konka Self-f

Self- onic 53065 1565081 14 June

Semiconductor Yes unde N/A

build indust 687.92 75.19 2019

Photoelectric d

ry

Industrial Park

Yancheng Electr

Self-f 26

Semiconductor Self- onic 64018 6481964

Yes unde N/A November

Assembly & build indust 985.46 9.46

d 2019

Test Base ry

Konka 19831 2807070

Electr

Intelligent 506.95 6.95 Self-f

Self- onic 6 June

Terminal Yes unde N/A

build indust 2020

Manufacturing d

ry

Base for Export

Electr

Frestec Self-f

Self- onic 11236 9780733 21 July

Refrigeration Yes unde N/A

build indust 64.00 9.61 2020

Park d

ry

Xi’an Konka

Electr

Smart Self-f 10

Self- onic

Appliances Yes 0 0 unde N/A February

build indust

Headquarters d 2021

ry

Project

360850 1458023

Total -- -- -- -- -- -- -- --

971.46 615.41

Note: Konka Chuzhou Smart Appliances and Equipment Industrial Park has obtained project land

and infrastructure has been completed (installation and debugging has been completed for certain

production lines and equipment of Ankang smart factory). Some production lines equipment and

instruments of Yancheng Semiconductor Assembly & Test Base are being debugged to prepare for

formal production. Regarding Dongguan Konka Intelligent Industrial Park Chongqing Konka

Semiconductor Photoelectric Industrial Park Suining Konka Electronic Technology Industrial Park

and Konka Intelligent Terminal Manufacturing Base for Export project land has been obtained and

construction begins. As for Xi’an Konka Smart Appliances Headquarters Project it is at a stage of

preparation.4. Financial Investments

(1) Securities Investments

□Applicable √ Not applicable

No such cases in the Reporting Period.

(2) Investments in Derivative Financial Instruments

□Applicable √ Not applicable

No such cases in the Reporting Period.VII Sale of Major Assets and Equity Investments

1. Sale of Major Assets

□Applicable √ Not applicable

No such cases in the Reporting Period.2. Sale of Major Equity Investments

√ Applicable □ Not applicable

Amount Amount

contributed contribute

by the d by the Relati

Rela

equity sale to net onship

ted-

Sellin interests to Effect income of betwe Owner Executed as Index

part

g net income of the the Pricin en ship scheduled or to

Count Equity Date y Discl

price of the sale on Company g counte fully not if not disclos

erpart interest of tran osure

(RM Company the as a princi rparty transfe state reason ed

y s sold sale sacti date

B’00 from Compa percentage ple and rred or and actions inform

on

00) period-beg ny of the the not taken ation

or

inning to Company’ Comp

not

date of sale s net any

(RMB’00 income

00) (%)

17% Optimi

interest zing the

Yantai in Compa

Huayi Yantai ny’s

Kang Kangy allocati 14 http://31

qiao un on of Valua Janua www.c

Mar. 3451 -9.30 109.72% No No Yes N/A

Real Industr assets tion ry ninfo.c2021

Estate ial increasi 2021 om.cn/

Co. Develo ng new/in

Ltd. pment capital dex

Co. liquidit

Ltd. y

Shang 39% 13 Optimi Valua 2

7478 0 35.50% No No Yes N/A

hai interest Apr. zing the tion Mar.Songp in 2021 Compa 2021

u Shangh ny’s

Enter ai allocati

prise Konka on of

Mana Green assets

geme Techno increasi

nt logy ng

Co. Co. capital

Ltd. Ltd. liquidit

y

Optimi

Xinxi

51% zing the

ang

interest Compa

Jiante

in ny’s

ng

Shenzh allocati

Real 17 27

en 1044 on of Valua

Estate Jun. -705.34 75.46% No No Yes N/A Mar.Kangxi 2 assets tion

Devel 2021 2021

n increasi

opme

Propert ng

nt

y Co. capital

Co.Ltd. liquidit

Ltd.y

VIII Principal Subsidiaries and Joint Stock Companies

√ Applicable □ Not applicable

Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net

profit:

Unit: RMB

Relations

hip with Principal Operating

Name activity Registered capital Total assets Net assets Operating profit Net profitthe revenue

Company

Shandong Econ Public

Technology Subsidiar service-wate

RMB164000000 14942559601.76 1709247396.00 987086128.04 146681624.08 128453230.52

Co. Ltd. y r

(Consolidated) management

Anhui Kongka Production

Subsidiar

Electronic Co. and sale of RMB140000000 3690534934.05 650661601.90 1806868590.94 46276410.97 39162542.61

y

Ltd. electronics

Subsidiar Internet and RMB20174070.E2info 553956780.55 415500435.15 234615129.51 113598977.66 96479893.87

y related 81

services

Export &

Hong Kong import of

Subsidiar

Konka Co. electromech HKD500000 2739505284.38 300611258.28 1652745518.47 74845278.16 62111963.10

y

Ltd. anical and

electronics

Shenzhen Software

Wankaida Subsidiar design and

Science and RMB10000000 112526307.52 109488027.22 29631160.00 26720092.73 22580956.32

y technology

Technology

Co. Ltd. development

Subsidiaries obtained or disposed of in the Reporting Period:

√ Applicable □ Not applicable

How subsidiary was

Effects on overall operations and operating

Subsidiary obtained or disposed in

performance

the Reporting Period

Chongqing Kanglei Optoelectronic

De-registered

Technology Co. Ltd. For better allocation of assets

Henan Kangxin Property Co. Ltd. De-registered

Nantong Hongdin Smart Technology Co.Newly incorporated

Ltd.Chuzhou Konka Precision Intelligent

Newly incorporated

Manufacturing Technology Co. Ltd.Xi'an Huasheng Jiacheng Property Co.Newly incorporated

Ltd.Suining Konka Soft Electronic Technology

Newly incorporated

Co. Ltd.Suining Konka Hongye Electronic Co.Newly incorporated

Ltd.Beneficial to the development of the Company’s

Kowin Memory Technology (Hong Kong)

Newly incorporated relevant business

Co. Limited

Konka Industrial and Trade Technology

Newly incorporated

(Shenzhen) Co. Ltd.Konka Huazhong (Hunan) Technology Co.Newly incorporated

Ltd.Yibin Kangrun Medical Waste Centralized

Newly incorporated

Treatment Co. Ltd.Yibin Kangrun Environmental Protection

Newly incorporated

Power Generation Co. Ltd.Kangruncheng Environmental Technology Newly incorporated

(Yantai) Co. Ltd.Shaanxi Konka Intelligent Appliance Co.Newly incorporated

Ltd.Kangxin Semiconductor (Yantai) Co. Ltd. Newly incorporated

Yantai Kangyun Industrial Development

Equity transfer

Co. Ltd.Yantai Kangyun Property Development Beneficial to the development of the Company’s

Equity transfer

Co. Ltd. relevant business and bring about a certain amount of

gains

Shenzhen Kangxin Property Co. Ltd. Equity transfer

Henan Kanghan Property Co. Ltd. Equity transfer

Information about principal subsidiaries and joint stock companies:

None

IX Structured Bodies Controlled by the Company

□Applicable √ Not applicable

X Risks Facing the Company and Countermeasures

In regard to the CE business color TVs white household appliances and mobiles have entered a

stock market. The industry is facing a bottleneck and fierce competition. Consequently the

Company's business performance in the CE business fell slightly. The Company will adopt multiple

measures such as raising R&D input accelerating result conversion integrating upstream and

downstream resources intensifying business coordination actively improving the sales structure

and promoting high-end brands. In addition it will endeavor to enhance its product competitiveness

reinforce its intelligent manufacturingcontinue to expand overseas businessimprove user

operations and reinforce internal management in order to proactively mitigate risks.As for the semi-conductor business facing the increasing R&D spending and uncertainties in the

R&D results the Company will step up effort to expand business in the areas of storage

optoelectronics and semi-conductor application and service and make active steps to break through

the technological bottleneck of Micro LED business towards faster conversion and output of

technology.Part IV Corporate Governance

I Annual and Extraordinary General Meeting Convened during the Reporting Period

1. General Meetings Convened during the Reporting Period

Investor

Meeting Type participat Date of the meeting Date of disclosure Resolutions of the meeting

ion ratio

The First Extraor

Announcement No. 2021-15 on the Resolutions of the

Extraordinary dinary

First Extraordinary General Meeting of 2021 of

General General 24.48% 15 Mar. 2021 16 Mar. 2021

Konka Group Co. Ltd. disclosed on

Meeting of Meetin

http://www.cninfo.com.cn/new/index

2021 g

The 2020 Annual Announcement No. 2021-37 on the Resolutions of the

Annual General 2020 Annual General Meeting of Konka Group Co.24.42% 19Apr. 2021 20 Apr. 2021

General Meetin Ltd. disclosed on

Meeting g http://www.cninfo.com.cn/new/index

2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with

Resumed Voting Rights

□Applicable √ Not applicable

II Change of Directors Supervisors and Senior Management

√ Applicable □ Not applicable

Name Office title Type of change Date of change Reason for change

Chairman of

the

Wang Youlai Supervisory Retired 15 Mar. 2021 Retired

Committee

supervisor

Cai Weibin Supervisor Elected 15 Mar. 2021 Elected as supervisor by the general meeting

Chairman of

the Elected as Chairman of the Supervisory

Cai Weibin Elected 15 Mar. 2021

Supervisory Committee by the Supervisory Committee

Committee

III Interim Dividend Plan

□Applicable √ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for

Employees

□Applicable √ Not applicable

No such cases in the Reporting Period.Part V Environmental and Social Responsibility

I Major Environmental Issues

Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major

polluter by the environmental protection authorities.√ Yes □ No

Nu

mbe

Way Distribu Exce

r of

Name of of tion of Discharge Total ssive

Name of disc Discharge Approved total

major disc dischar standards discha disc

polluter harg concentration discharge

pollutants harg ge implemented rge harg

e

e outlets e

outl

ets

Pollution

sources of

PH 6-9; total

waste

copper≤0.3mg/L;

water: PH

COD≤50mg/L;

total Total discharge

ammonia

copper 448500

nitrogen≤8mg/L;

COD Disc tons/year;

total

ammonia n harg pollutant COD

Main nitrogen≤15mg/L;

itrogen e of 19.061250

dischar total 0.448

total stati GB 21900-2008 tons/year;

ge phosphorus≤0.5m 5

nitrogen onar Discharge ammonia nitro

outlet g/L; total millio Non

total y 1 Standard For gen 3.0498

of the cyanide≤0.2mg/L; n e

XingDa phosphorus poll Pollutants From tons/year; total

waste total tons/y

HongYe total utio Electroplating nitrogen

water nickel≤0.1mg/L; ear

cyanide n 32.9792

station total iron≤2mg/L;

total sour tons/year; total

total

nickel ces phosphorus

aluminum≤2mg/L

total iron 0.2082

;

total tons/year

petroleum≤2mg/L

aluminum

; suspended

petroleum

solids≤30mg/L

suspended

solids

waste gas Disc Three sulfuric acid Emission Standard 2986 Total

Non

pollutants: harg 14 on the fume≤30mg/m3; for Electroplating 5600 discharge:

e

sulfuric e of roof of nitrogen Pollutants 00 2986560000

acid fume stati plant 1 oxide≤200mg/m3; GB21900-2008 standa standard

hydrogen onar ten on hydrogen Air Emission rd cube/year

chloride y the roof chloride≤30mg/m Limits Table 5 cube/y (note: the total

formaldehy poll of plant 3; hydrogen Emission standard ear discharge is

de utio 2 and cyanide≤0.5mg/m of Volatile not stated in

hydrogen n one on 3; Organic the latest

cyanide sour the roof TVOC≤90mg/m3; Compounds for version of

nitrogen ces of the benzene≤1mg/m3; Printing Industry national

oxide canteen toluene+xylene≤1 DB44/815-2010; discharge

ammonia 5mg/m3; tin and GuangdongAir permit in 2021;

benzene its Pollutant two exhaust

toluene+xy compounds≤8.5m Emission Standard towers were

lene g/m3; DB44/27-2001 the added in 2021;

TVOC tin PM(dust)≤120mg/ Second Level calculated

and its m3 Standard in the based on air

compounds Second Period volume in

PM(dust) Emission standard environmental

for Odor impact

Pollutants (GB assessment)

14554-1993)

Table 2 Standard

1. Emission 1. Discharge

standard for standard of

pollution discharge permit:

discharge Discharge

Total discharge

certificate: Standard of

amount is

copper≤0.5mg/L; Electroplating318300

Wastewate Disc COD≤80mg/L; Water Pollutant

3183 tons/year;

r pollution: harg ammonia for Electroplating

Main 00 COD is 25.464

Boluo PH e of nitrogen≤15mg/L; DB44/1597-2015

dischar tons/y tons/year;

Konka copper stati total Table 1 Pearl

ge ear ammonia

and COD onar nitrogen≤20mg/L; River Delta

outlet Note: nitrogen is Non

Boluo ammonia y 1 total Discharge

of the accord 4.775 e

Konka nitrogen poll phosphorus≤1mg/ Standard; 2. Local

waste ing to tons/year; total

Precisio total utio L; 2. local discharge

water discha nitrogen is 4.8

n nitrogen n emission standard: BFBH

station rge tons/year.total sour standard: [2019] No. 58

permit Note:

phosphorus ces copper≤0.5mg /L; Document: COD

according to

COD≤30mg/L; ammonia nitrogen

the discharge

ammonia total phosphorus

certificate

nitrogen≤1.5mg/L based on

; total "Environmental

nitrogen≤10mg/L; Quality Standards

total for Surface Water

phosphorus≤0.3m GB3838-2002 "

g/L Category IV water

standard the total

nitrogen discharge

reaches 50% of

discharge limit

requirement of the

corresponding

industry

waste

Emission Standard

gas polluta sulfuric acid

for Electroplating

nts: fume≤30mg/m3；

Pollutants

sulfuric nitrogen

GB21900-2008

acid fume oxide≤200mg/m3

Air Emission

hydrogen Six on ；hydrogen

Disc Limits Table 5

chloride the roof chloride≤30mg/m

harg GuangdongAir

formaldehy of plant 3； The total

e of Pollutant

dehydroge 1 TVOC≤90mg/m3 discharge is

stati Emission Standard

n cyanide thirteen ； not stated in

onar DB44/27-2001 the

nitrogen on the benzene≤12mg/m the latest Non

y 20 Second Level /

oxide roof of 3； version of e

poll Standard in the

ammonia plant 2 methylbenzen≤40 national

utio Second Period

benzene and one mg/m3； discharge

n Emission standard

methylben in dimethylbenzene≤ permit in 2020

sour for Odor

zene sewage 70mg/m3；tin and

ces Pollutants (GB

TVOC tin station its

14554-1993)

and its compounds≤8.5m

Table 2 Standard

compounds g/m3；PM（dust）

Emission standard

PM ≤120mg/m3；oil

of cooking fume

(dust) oil fume≤2mg/m3

(GB18483-2001)

fume

(I) The construction of anti-pollution facilities and its operation situation

1. XingDa HongYe

All production equipment of Guangdong Xingda Hongye Electronics Co. Ltd. has been set up with

supporting environmental protection facilities according to the requirements of environmental

impact assessment. The discharge of wastewater waste gas and noise as well as the disposal of all

solid wastes in the Company all met the standards during the Reporting Period.The sewage treatment centre of Guangdong Xingda Hongye Electronics Co. Ltd. with an

investment of about RMB15 million was formally put into production in June 2007 and the

treatment capacity of the sewage treatment facility was 2566 tons/day. After technical improvement

and expansion the capacity increased to 2900 tons/day with the treatment process remaining

unchanged. Currently the sewage treatment facilities are functioning well and the main pollutant

discharge meets the discharge standards and environmental assessment standards. The pollutants are

discharged to Fushachong after being treated at the self-built sewage treatment station.2. Boluo Konka and Boluo Konka Precision

All production equipment of Boluo Konka and Boluo Konka Precision has been reported for

environmental assessment review and approval. The supporting environmental protection and

pollution control facilities have been designed by pollutant type and concentration and effectively

operated in a targeted manner. During the Reporting Period the discharge standards were met in

terms of industrial waste water exhaust and factory noise and all industrial waste generated was

disposed of in compliance with environmental laws and regulations.Boluo Konka was established in 2000. To manufacture single sided PCBs it invested approximately

RMB 5 million in constructing a sewage treatment station without the biochemical treatment

function and featuring a discharge capacity of 300 tons per day. In 2007 Boluo Konka expanded its

factory by starting the Phase II project which was submitted for environmental assessment as

Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project owner was

changed into Boluo Konka Precision). It spent about RMB 10 million on constructing the Phase II

sewage treatment station to add the biochemical treatment function with a discharge capacity of 800

tons per day.In 2019 according to the requirements in the documents issued by Boluo County Ecology and

Environment Bureau the two sewage treatment stations of Boluo Konka and Boluo Konka

Precision must be upgraded towards higher standards. Through comprehensive assessment of the

professional environmental protection company it was decided that the sewage treatment stations of

the said companies be combined to meet the upgrading requirements. Boluo County Ecology and

Environment Bureau approved the combination of the discharge outlets of the aforementioned

companies and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the

combination the discharge capacity would reach 1100 tons per day. The aforementioned

companies spent about RMB 20 million between 2019 and 2020 on upgrading the sewage treatment

stations towards higher standards and added industrial advanced processes and treatment systems

such as RO water treatment Fenton oxidation and MBR films. After the technological

improvements and expansion the sewage treatment reaches 2200 tons per day (with a discharge

capacity of 1100 tons per day) with a reuse rate of more than 60%. At present the waste water

treatment facilities are operating in good conditions; the discharge of major pollutants meets the

discharge standards. After advanced treatment of the water reuse facilities the water treated by the

sewage stations that meets the standards will be reused in the plants while the remaining water will

be discharged to the municipal pipe network to be processed by the urban and rural water treatment

factory before being discharged to the Dongjiang River.(II) Environmental impact assessment and other environmental protection administrative licenses of

the construction project

1. XingDa HongYe

Guangdong Xingda Hongye Electronics Co. Ltd. obtained the approval from Zhongshan

Environmental Protection Bureau (ZHJ [2004] No. 61) for the operations and construction here in

2004. Subsequently it obtained the documents of ZHJD [2008] No. 06250 and ZHJD [2010] No.04469 respectively in 2008 and 2010. After the operations of its original project Guangdong

Xingda Hongye Electronics Co. Ltd. passed the two phases of acceptance assessment including the

Phase I acceptance assessment in 2008 (HY [2008] No. 02) and the Phase II acceptance assessment

in 2012 (ZHYBG [2012] No. 000092).In December 2012 Guangdong Xingda Hongye Electronics Co. Ltd. commissioned Zhongshan

Research Institute of Environmental Protection Science to conduct the assessment of environmental

impact for the technical improvement and expansion project of Guangdong Xingda Hongye

Electronics Co. Ltd. On 31 December 2012 it obtained the approval document titled Reply to the

Report on the Environmental Impact of the Technical Improvement and Expansion Project of

Guangdong Xingda Hongye Electronics Co. Ltd. (ZHJS (2012) No. 115) from Zhongshan

Environmental Protection Bureau. The document granted the approval for addition of the

production of six-layer PCB eight-layer PCB and above and HDI boards and for reduction of the

production of single-sided PCB. After the technical improvement and expansion the total

production capacity of single-sided PCB would be 200000 m2/year of double-sided PCB would be

250000 m2/year of four-layer PCB would be 300000 m2/year of six-layer PCB would be 200000

m2/year of eight-layer PCB and above would be 150000 m2/year and of HDI boards would be

100000 m2/year. In the project while the original plating equipment and processes remained

unchanged the brown oxide process was added to the original production process; all the increased

plating capacity would be outsourced. The technical improvement and expansion project was

commenced in 2013 and completed in January 2018. The commissioning was carried out from 10

February 2018 to 8 July 2018. The construction of the project complied with the requirements for

environmental impact assessment and met the criteria for the acceptance of environmental

protection for the completion of construction projects. In 2021 the Company renewed/changed the

state sewage permit certificate No.: 91442000768405216J001P.2. Boluo Konka and Boluo Konka Precision

In 2000 Boluo Konka obtained the approval from the Huizhou Municipal Ecology and

Environment Bureau (HSHJ [2000] No. 23). The project was completed and put into operation in

the same year. The pollutant discharge permit No. is 91441322721121283N001U.In January 2007 Boluo Konka appointed Huizhou Institute of Environmental Sciences to conduct

the environmental impact assessement of the Boluo Konka Expansion Project. On February 8 2007

Boluo Konka received the Document of Approval for the Environmental Impact Report on the

Project of Boluo Konka Double Sided and Multi-Layer Boards (HSHJ [2007] No. J32). According

to the Document approval was given to the addition of double sided and multi-layer circuit boards

in the project expansion. The production capacity for single sided circuit boards would reach 1

million square meters per year and double sided and multi-layer circuit boards would reach

650000 square meters per year after the project expansion. In addition electroplating equipment

and process would be added in the expansion project. The construction of the project met the

environmental assessment requirements and satisfied the conditions for the environmental

protection in the project inspection and acceptance. The pollutant discharge permit was obtained in

the same year. The aforementioned project was later renamed as Boluo Konka Precision. In 2020

Boluo Konka Precision obtained the national pollutant discharge permit with the permit No.91441322799316208F001V.(III) Contingency plan for emergent environmental incident

1. XingDa HongYe

In strict accordance with requirements of laws regulations and relevant documents such as Law of

the People’s Republic of China on Emergency Response and Interim Measures on Environmental

Emergency Response Plan Guangdong Xingda Hongye Electronics Co. Ltd. has established risk

prevention measures and emergency response plans kept its emergency equipment in a normal state

formulated the Contingency Plan for Emergent Environmental Incident and put on records at

Zhongshan Environmental Protection Bureau Guangdong Province record No.: 4420002017044M.In addition the Company conducts a drill of major environmental pollution incident on its factory

to enhance its emergency response capabilities for emergent environmental pollution incidents.Furthermore Guangdong Xingda Hongye Electronics Co. Ltd. has built an emergency pool (which

is the comprehensive water tank in the sewage treatment station covering an area of 800m3) and set

up a fire pool (500m3 and located on Floor 1 of Factory Building No. 2) which serve as temporary

storage pools for exterior drainage or fire drainage to eradicate accidental discharge of wastewater

in the case of failed operation of the sewage transmission pipeline or fire accident due to outage or

other special circumstances. The sewage transmission pipeline has been equipped with

anti-corrosion and cathodic protection using anti-corrosion pipes and carbon steel pipes. Pursuant to

the new discharge standards the related discharge pipeline has been modified and the production

department has been required to discharge strictly in accordance with discharge standards to cut the

costs of wastewater treatment. Different types of wastewater are normally and properly treated

through fine shunting. Personnel have been specially arranged to manage the chemical liquid

warehouse and exert reasonable control and requirements over the liquid discharge by the plant and

timely transportation of the liquid by suppliers; emergency tools such as protective masks boots

and immiscible pumps have been equipped.2. Boluo Konka and Boluo Konka Precision

Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the

People's Republic of China Interim Measures for the Management of Emergency Plans for

Unexpected Environmental Incidents other related laws and regulations as well as the requirements

of relevant documents. They have established risk prevention measures and emergency plans such

as Emergency Plan for Unexpected Environmental Incidents and have their emergency equipment

run in a normal status. In addition they have filed with Boluo County Branch of Ecology and

Environment Bureau in Huizhou Guangdong and Huizhou Ecology and Environment Bureau

respectively with the file No. 441322-2020-0073-M and 441301-2021-004-M. They organize all

staff to conduct drills for major environmental pollution incidents every year to improve their

ability for the emergency response to unexpected environmental pollution incidents.Boluo Konka and Boluo Konka Precision are well equipped with all necessary facilities for

emergency response to unexpected incidents including an emergency response pool of industrial

waste water (500m3 under the ground of the sewage treatment station) and a firefighting reservoir

(300m3 located beside the staff dormitory building). In the event of an unexpected environmental

incident such as leakage or failure of a waste water transporting pipe the emergency response pool

will prevent any accident of industrial waste water; in the event of a fire safety accident the

firefighting reservoir will be put into use. All departments are required to discharge pollutants

strictly in accordance with pollutant discharge standards to reduce the costs of waste water

treatment by properly and reasonably dividing solution and waste water discharged from the plants.The chemical warehouses are managed by designated personnel with standard control and

requirements over the loading and unloading of chemical products by suppliers. In terms of

emergency response supplies a full set of emergency rescue tools are prepared including gas masks

acid and alkaline resistant boots gloves goggles safety ropes helmets fire sand and submersible

pumps.(IV) Environmental self-monitoring plan

1. XingDa HongYe

According to the requirements of the Environmental Protection Administration Xingda Hongye

attaches great importance to environmental monitoring management. Thus pursuant to the

Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises

the Report on the Environmental Impact of the Technical Improvement and Expansion Project of

Guangdong Xingda Hongye Electronics Co. Ltd. and the reply opinions for environmental impact

assessment the Company has formulated the Environmental Self-Monitoring Plan and reported to

the municipal environmental protection bureau for approval and record. It implements online

monitoring for the PH COD and ammonia nitrogen pollutants discharged in wastewater through

real-time monitoring and an automatic frequency of every two hours entrusts the qualified

third-party online monitoring equipment operation and maintenance institute to carry out periodic

maintenance on automatic monitoring equipment and monitoring data networking equipment and

entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring.All self-monitoring plan results will be reported and disclosed on public platforms on a periodic

basis.In the case of normal production the results will be updated on a daily basis with online

monitoring data disclosed in real time and manual monitoring data disclosed on the Real time

publicity or every 2 hours after completion. Items monitored on a monthly basis will be disclosed

by the 10th day of the month. In the case of public holidays the operation monitoring data for the

holiday period will be disclosed on the first working day after the holiday. The annual

self-monitoring report for the previous year will be disclosed at the end of January each year. In the

case of shutdown with days off the number of days off will be indicated in the information bar and

related proofs will be submitted to the monitoring center of the municipal environmental bureau for

record. The results are disclosed on Guangdong Province Key Pollution Source Regulatory

Information Platform and on National Pollution Source Monitoring Information Management and

Sharing Platform for public monitoring.2. Boluo Konka and Boluo Konka Precision

In line with the requirements of environmental departments Boluo Konka and Boluo Konka

Precision attach great importance to environmental monitoring and management. Based on the

Measures for the Self-Monitoring and Information Publicity of Enterprises under National Key

Monitoring Environmental Impact Report and the opinions stated in reply to the environmental

assessment they have established the Environmental Self-Monitoring Plan of Enterprises and filed

a record with the municipal ecology and environment bureau. According to the plan they have

installed an online monitoring system to monitor the PH value total flow COD ammonia nitrogen

and total phosphorus of the waste water and networked with the ecology and environment bureau.They appoint a qualified third-party online monitoring equipment operation and maintenance

organization to perform regular maintenance of the automatic monitoring equipment and the

monitoring data networking equipment and a qualified third-party monitoring organization to

perform the monitoring of the “three wastes”. All self-monitoring results will be reported and

published on public platforms and subject to public monitoring.(V) Administrative punishments received in the Reporting Period due to environmental issues

No such cases in the Reporting Period.(VI) Other environmental information that should be disclosed

1. XingDa HongYe

The environmental protection investment of Guangdong Xingda Hongye Electronics Co. Ltd. for

H1 2021 was approximately RMB8 million mainly used for the treatment of sewage waste gas and

solid waste as well as the maintenance and upgrading of environmental protection equipment.2. Boluo Konka and Boluo Konka Precision

Boluo Konka and Boluo Konka Precision invested approximately RMB4.65 million on

environmental protection in H1 2021 in total mainly used for the daily management of waste water

and gas.(VII) Other Environmental Information

According to the examination by the Company the Company and its other holding subsidiaries are

not key pollutant units. All have faithfully implemented the laws and regulations related to

environmental protection such as Environmental Protection Law of the People's Republic of China

Water Pollution Prevention and Control Law of the People's Republic of China Law of the People's

Republic of China on the Prevention and Control of Atmospheric Pollution Law of the People's

Republic of China on Prevention and Control of Pollution From Environmental Noise Law of the

People's Republic of China on the Prevention and Control of Environmental Pollution by Solid

Waste in the daily production and operation without being punished for violations of laws and

regulations during the Reporting Period.II Social Responsibility

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.1. To protect rights of shareholders and creditors

(1) The Company protects rights of shareholders

The Company insists protection of rights for all shareholders especially equal status and legal

rights for medium and small shareholders and make insurance of rights to be informed

participation and vote.The Company would perform all obligations of information disclosure to ensure timely accurate

and complete information and strictly execute confidential system of registrar and insider

information to guarantee justice.The Company pays attention to repay to shareholders and insists mutual development with

investors. In the previous three years the Company shares dividends with all shareholders. The

Company strict executes dividend policies regulated in Articles of Association. All cash dividends

comply with regulations in Articles of Association and requirements in shareholders’ conference.

(2) The Company 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.2. The Company performs responsibilities to suppliers and customers

(1) It is devoted to improve 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.3. 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.In H1 2021 the Company paid a total of over RMB700000 to Tianzhu County and Sanshui County

in Guizhou Province as donations and for agricultural product purchases.4. 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

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 promotion

training demission 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) To protect occupational health for employees

The Company would establish and perfect training safety assessment by security system to

guarantee the safety and occupational health for employees. On the other hand by promotion of the

importance of safety safety awareness would be rooted in the heart to make all employees abide by

safety standards and fully play subjective initiative in protecting self-occupational safety and

production safety.

(3) To 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 would be meticulous in training of regular business and occupational skills and

carry out all requirements positively to improve professional levels by normal training management.On the other hand the Company would establish methods of self-training platform training

instructor theme training and lectures to provide colorful training activities. Besides the work

professional and comprehensive quality would be fully promoted.5. Be responsible for environment

The Company concerns about environmental changes and close relationships with environment by

creating low carbon economy in technical innovation from green manufacturing green products to

green industry circular economy. The Company would provide efforts in protecting global

ecological environment. In June 2012 subsidized products catalogue had been released jointly by

National Development and Reform Commission Ministry of Industry and Information and Ministry

of Finance.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.Part VI Significant Events

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 at the Period-End

□Applicable √ Not applicable

No such cases in the Reporting Period.II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related

Parties for Non-Operating Purposes

□Applicable √ Not applicable

No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees

□Applicable √ Not applicable

No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor

Are the interim financial statements audited?

□ Yes √ No

The interim financial statements of the Company have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding

the Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting

Period

□Applicable √ Not applicable

VI Explanations Given by the Board of Directors Regarding the Independent Auditor's

“Modified Opinion” on the Financial Statements of Last Year

□Applicable √ Not applicable

VII Insolvency and Reorganization

□Applicable √ Not applicable

No such cases in the Reporting Period.VIII Legal Matters

Significant lawsuits and arbitrations:

√ Applicable □ Not applicable

Invol Index to

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Kangrun Water Affairs Co. Ltd.to pay the construction cost.Note: Courts or arbitration bodies ruled in favor of the Company in the following cases which are currently under enforcement. Details of these cases

can be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.2019-63) and the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97) and the

Company's periodic reports: a) As matured notes were failed to be accepted the Company has filed a lawsuit with the court to request China Energy

Electric Fuel Co. Ltd. China Energy (Shanghai) Enterprise Co. Ltd.. Shanghai Nengping industrial Co. Ltd. and Shenzhen Qianhai Baoying

Factoring Co. Ltd. to pay the bill and the corresponding interest to the Company. b) As matured notes were failed to be accepted the Company has

filed a lawsuit with the court to request Shanghai Huaxin International Group Co. Ltd. and Tianjin International Trade Petrochemical Co. Ltd. to pay

the bill and the corresponding interest to the Company. c) As matured notes were failed to be accepted the Company has filed a lawsuit with the court

to request Shanghai Huaxin International Group Co. Ltd. Qingdao Bonded Zhongshe International Trading Co. Ltd. and Shenzhen Qianhai Benniu

Agricultural Technology Co. Ltd. to pay the bill and the corresponding interest to the Company. d) As matured notes were failed to be accepted the

Company has filed a lawsuit with the court to request Hefei Huajun Trading Co. Ltd. and Wuhan Jialian Agricultural Technology Development Co.Ltd. to pay the bill and the corresponding interest to the Company. e) Due to dispute arisen from a logistics contract the Company’s subsidiary Anhui

Konka filed a lawsuit to request the freight forwarder Shanghai Triangle Link Logistics Co. Ltd. Shenzhen Branch to make compensation. f) Due to

contract dispute the Company’s subsidiary Shenzhen Nianhua applied for arbitration to request the respondent Fang Xianglong and Jiang Yan to

make compensation for corresponding annual profit and fund possession cost. g) Due to payment dispute the Company’s subsidiary Hong Kong

Konka applied for an arbitration to Shenzhen Court of International Arbitration to request the respondent Makena Electronic (Hong Kong) to pay for

goods and liquidated damages.The following cases have been disclosed in temporary announcements and periodic reports and there is no further progress. Details of these cases can

be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.2020-97) and the Announcement on Accumulated Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) and the

Company's periodic reports: a) As matured notes were failed to be accepted Konka Factoring has filed a lawsuit with the court to request Tahoe

Group Co. Ltd. Fuzhou Taijia Enterprise Co. Ltd. and Xiamen Lianchuang Microelectronics Co. Ltd. to pay the bill and the corresponding interest

to Konka Factoring. b) The customer of Hong Kong Konka H-BUSTER SAO PAULO INDUSTRIAE COMERCIO S.A (Brazil) was insolvent and

obtained the approval of the judicial reorganization application of Cotia Third Civil Court of the Court of Sao Paulo Brazil in May 2013. As the

creditor of H-BUSTER Hong Kong Konka filed the debt declaration documents and in August 2014 the amount confirmed of debt was USD2.78

million. c) Due to the Jiangxi Xinxin Jian’an Engineering Co. Ltd. (hereinafter referred to as the “Jiangxi Xinxin”) Jiangxi Shanshi Technology

Development Co. Ltd. (hereinafter referred to as the “Jiangxi Shanshi”) Jiangxi Zhongyi Decoration Materials Co. Ltd. (hereinafter referred to as

the “Jiangxi Zhongyi”) failed to repay the loan and its interest of China Great Wall AMC Jiangxi Branch (hereinafter referred to as the “Great WallJiangxi Branch”) the Great Wall Jiangxi Branch sued to the court and required Jiangxi Xinxin Jiangxi Shanshi Jiangxi Zhongyi to repay RMB300

million with RMB108000 liquidated damages and RMB13.65 million of interest. Meanwhile 9 guarantors including Jiangxi Konka Xinfeng

Microcrystalline and Nanocrystal are required to undertake joint liability guaranty. The judgment of first instance required that Jiangxi Xinxin Jiangxi

Zhongyi and Jiangxi Shanshi shall repay the principal interest and liquidated damages to Great Wall Jiangxi Branch and the guarantors bear the joint

liability for satisfaction to the debts. The defendants have appealed against the first instance judgment. Later the court of second instance ruled that

the case should be returned to the court of first instance for retrial. d) Due to the dispute of sales contract Wumart Stores Inc. sued the Beijing Branch

of Wumart to the court of Shijingshan District of Beijing and requested the Beijing Branch to return the prepayment of goods. e) Due to dispute

arisen from an advertising contract the Company’ s subsidiary E2info filed a lawsuit with Nanshan District Court of Shenzhen Municipality to

request Tansuo Media to pay the principal due and liquidated damages. f) Due to dispute arisen from a loan contract the Company filed a lawsuit to

the court to request Chongqing Qingjia Electronics Co. Ltd. to repay the loan and interest. g) As matured notes were failed to be accepted the

Company filed a lawsuit with the court to request Wuhan Jialian Agricultural Technology Development Co. Ltd. to pay the bill and corresponding

interest to the Company. h) Due to payment dispute the Company’s subsidiary Anhui Electrical Appliance applied for an arbitration to Chuzhou

Arbitration Commission to request the respondent Makena Electronic (Shenzhen) to make guarantee. i) Due to contract dispute the Company filed a

lawsuit with Zhengzhou Intermediate People’s Court to request Henan Radio and Television Network Co. Ltd. to pick up goods and make payment

and liquidated damages according to the contract. j) Due to condominium ownership dispute the owners’ committee of Jingyuan Building filed a

lawsuit to request Zhongfang Group Nanfang Real Estate Co. Ltd. to make supplementary payment of maintenance fund. Zhongfang Group Nanfang

Real Estate Co. Ltd. submitted a defense on the ground that the Company jointly developed Jingyuan Building and the Company was filed as the

defendant. k) Because of a dispute over capital increase the Company's subsidiary Shenzhen Konka Investment Holding Co. Ltd. applied for

arbitration with the Shenzhen Court of International Arbitration (SCIA) requesting the respondents Elion Resources Group and Elion Ecological to

perform the repurchase obligation. l) Because of a dispute over a purchase and sales contract the Company's subsidiary Dongguan Konka Electronic

Co. Ltd. filed a lawsuit with the People's Court of Nanshan District of Shenzhen requesting Dongguan Gaoneng High Polymer Materials Co. Ltd.Wang Dong Shenzhen Xinlian Xingyao Trade Co. Ltd. Shenzhen Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong Trade Co.Ltd. and Huang Zhihao to pay the overdue loan and the corresponding liquidated damages. m) Because of a dispute over a purchase and sales

contract the Company's subsidiary Jiahuanjia Eco-protection Technology Co. Ltd. sued Zhejiang Jiade Renewable Resource Recycling Co. Ltd.Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the advance payment and pay the liquidated

damages. n) Because of a dispute over a purchase and sales contract the Company's subsidiary Jiahuanjia Eco-protection Technology Co. Ltd. sued

Zhejiang Zhijie Renewable Resource Recycling Co. Ltd. Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them

to return the advance payment and pay the liquidated damages. o) Because of a dispute over a purchase and sales contract the Company's subsidiary

Jiahuanjia Eco-protection Technology Co. Ltd. filed a lawsuit against Zhejiang Xinkai Renewable Resource Recycling Co. Ltd. Huanjia Group Co.Ltd. Wang Bingde Zhang Xueyin and Wang Renping requesting them to return the advance payment and pay the liquidated damages. p) Because of

a dispute over real rights granted by way of security the Company's subsidiary Anhui Konka Electronic Co. Ltd. sued Huang Ruirong requiring the

latter to exercise the real rights granted by way of security.Other legal matters:

□ Applicable √ Not applicable

IX Punishments and Rectifications

□Applicable √ Not applicable

No such cases in the Reporting Period.X Credit Quality of the Company as well as its Controlling Shareholder and De Facto

Controller

√ Applicable □ Not applicable

The Company as well as its controlling shareholder and de facto controller were at a sound credit

standing during the Reporting Period. Neither of them is found to have failed to execute any valid

court decision or have failed to repay any debt of a large amount that is due.XI Major Related-Party Transactions

1. Continuing Related-Party Transactions

√ Applicable □ Not applicable

Obtaina

As %

ble Index

Relatio of total Approv

Over market to

nship Specifi Total value ed Method

Type of Pricing Transac the price Disclos discl

Related with c value of all transact of

transact principl tion approv for ure osed

party the transact (RMB’ same-ty ion line settlem

ion e price ed line same-ty date infor

Compa ion 0000) pe (RMB’ ent

or not pe matio

ny transact 0000)

transact n

ions

ions

OCT

Propert

Enterpr Purchas

Under y

ises e ofthe

commo manage NegotiaCo. same Market 3494.0 24 Mar.dities ment ted 0.61% 10000 Not Cash N/A http:/

Ltd and actual price 9 2021

and utilities price /ww

its controll

service office w.cni

subsidi er s leases nfo.c

aries

om.c

OCT TVs n/ne

Enterpr Sales

Under intellig w/ind

ises ofthe ent

goods Negotia ex

Co. same termina Market 1444.3 24 Mar.and ted 0.23% 10000 Not Cash N/A

Ltd and actual ls etc. price 8 2021

service price

its controll

s and

subsidi er related

aries service

s

4938.4

Total -- -- -- 20000 -- -- -- -- --7

Large-amount sales return in detail N/A

The Company has published the Forecasting Public Notice on Routine Related-party Transaction for Y2021

Give the actual situation in the Reporting

on Securities Times Shanghai Securities News and China Securities Journal as well as the Internet website

Period (if any) where an estimate had

designated by CSRC http://http://www.cninfo.com.cn/new/index on 24 March 2021. In the Reporting Period

been made for the total value of

the basis for pricing transaction price transaction amount and settlement methods of raw materials

continuing related-party transactions by

purchased by the Company were basically in accordance with the forecast. The total amount was

type to occur in the Reporting Period

RMB49.3847 million.Reason for any significant difference

between the transaction price and the N/A

market reference price (if applicable)

2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity

Investments

□Applicable √ Not applicable

No such cases in the Reporting Period.3. Related-Party Transactions Regarding Joint Investments in Third Parties

□Applicable √ Not applicable

No such cases in the Reporting Period.4. Credits and Liabilities with Related Parties

√ Applicable □ Not applicable

Indicate by tick mark whether there were any credits and liabilities with related parties for

non-operating purposes.√ Yes □ No

Credits receivable with related parties:

Whether

Increased in Recovered Interest in

there is

Beginning the in the the Ending

occupation

Related Related Forming balance Reporting Reporting Reporting balance

on Interest rate

party relationship reason (RMB’000 Period Period Period (RMB’000

non-operati

0) (RMB’000 (RMB’000 (RMB’000 0)

ng capital or

0) 0) 0)

not

Demand

Yibin OCT Subsidiary

of

Sanjiang of

business Not 7500.00 0 3500.00 5.70% 143.44 4000.00

Properties controlling

developm

Co. Ltd. shareholder

ent

Chuzhou Subsidiary Demand

Not 16084.74 0 311.10 7.00% 525.55 15773.64

Kangjin of of

Health controlling business

Industry shareholder developm

Developmen ent

t Co. Ltd.Effects of credits with

No effect to the normal operation of the Company. Other shareholders of Yibin OCT Sanjiang Properties Co. Ltd. and

related parties on the

Chuzhou Kangjin Health Industry Development Co. Ltd. offer financial assistance under the same conditions in

Company’s operating results

accordance to their shareholding ratio.and financial conditions

Liabilities payable with related parties:

Increased in Recovered in Interest in the

Related Beginning Ending

Forming the Reporting the Reporting Reporting

Related party relationshi balance Interest rate balance

reason Period Period Period

p (RMB’0000) (RMB’0000)

(RMB’0000) (RMB’0000) (RMB’0000)

2406.00 0 2406.00 4.56% 23.16 0

8700.00 0 8700.00 4.56% 83.75 0

50000.00 0 38894.00 4.22% 582.14 11106.00

OCT The Company

Enterprises Controlling applies 0 50000.00 0 4.34% 753.47 50000.00

Co. Ltd. shareholder entrusted loanto it 0 50000.00 0 4.34% 717.31 50000.00

0 50000.00 0 4.34% 632.92 50000.00

0 50000.00 0 4.56% 456.00 50000.00

0 50000.00 0 4.56% 95.00 50000.00

Effects of liabilities with

related parties on the The Company applies entrusted loan from OCT Enterprises Co. Ltd. which meets the needs of the company's existing

Company’s operating results business development and reduces the financing cost.and financial conditions

5. Transactions with Related Finance Companies or Finance Companies Controlled by the

Company

□Applicable √ Not applicable

No such cases in the Reporting Period.6. Other Major Related-Party Transactions

√ Applicable □ Not applicable

(1) Provide security limit to Shareholding Related Company: The Proposal on Providing Security

Limit to Yibin OCT Sanjiang Real Estate Co. Ltd. was reviewed and passed at the 40th Meeting of

the Ninth Board of Directors held on March 22 2021 and the 2020 Shareholders' General Meeting

on April 19 2021 which decided that the Company will continue to provide Yibin OCT Sanjiang

Real Estate Co. Ltd. with a security limit of RMB400 million at the shareholding ratio with a term

of three years after the security limit reviewed and passed at the 2018 Third Extraordinary General

Meeting is due. Yibin OCT Sanjiang Real Estate Co. Ltd. will use this security limit to apply for a

loan with the bank. Other shareholders of Yibin OCT Sanjiang Real Estate Co. Ltd. will provide

security to it at their respective shareholding ratios.

(2) Providing advertising services to OCT Group: At the 42nd Meeting of the Ninth Session of the

Board of Directors on 28 May 2021 the Company considered and approved the Proposal on

Providing Advertising Services to OCT Group. According to the decision the Company would

provide OCT Group (inclusive of its subsidiaries) with advertising services at intelligent terminals

with a service transaction price of no more than RMB100 million.

(3) Transfer 70% of the equity in Shenzhen Yipingfang Network Technology Co. Ltd.: The

Proposal on Transfer of Some of Equity in Shenzhen Yipingfang Network Technology Co. Ltd. was

reviewed and approved at the 44th Meeting of the Ninth Board of Directors of the Company held on

August 2 2021 and later at the 2nd Extraordinary General Meeting of 2021 held on August 18 2021

which decided that the 70% of the equity in Shenzhen Yipingfang Network Technology Co. Ltd.held by the Company will be publicly transferred at the state-owned property right exchange. The

Company's controlling shareholder Overseas Chinese Town Holdings Company (OCT Group) (or

its controlling shareholder) might participate in the delisting of some of the equity in Shenzhen

Yipingfang Network Technology Co. Ltd.Index to the public announcements about the said related-party transactions disclosed

Title of public announcement Disclosure date Disclosure website

Announcement on Providing Guarantee Line for Joint Stock

24 March 2021

Company and Related-party Transaction http://www.cninfo.com.cn/new/i

Announcement on Providing Advertising Services to OCT Group and ndex

1 June 2021

Related-party Transaction

Announcement on Listing Transfer of Some Equity of Shenzhen

3 August 2021

E2info Network Technology Co. Ltd.XII Major Contracts and Execution thereof

1. Entrustment Contracting and Leases

(1) Entrustment

□Applicable √ Not applicable

No such cases in the Reporting Period.

(2) Contracting

□Applicable √ Not applicable

No such cases in the Reporting Period.

(3) Leases

√ Applicable □ Not applicable

Note to leases

No significant leases in the Reporting Period.The rent of Konka Development Building has received RMB29164184.58 in the Reporting Period.The project bringing about gains or losses as over 10% of total profit in the Reporting Period

□Applicable √ Not applicable

No such cases in the Reporting Period.2. Major Guarantees

√ Applicable □ Not applicable

Unit: RMB'0000

Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)

Havin Guarant

Disclosure Actual Type Collat Counter Term

Line of Actual g ee for a

date of the guarant of eral guarant of

Obligor guarante occurren expire related

guarantee line ee guara (if ee (if guara

e ce date d or party or

announcement amount ntee any) any) ntee

not not

Yibin OCT

Joint-l

Sanjiang 2019/09/ Three

2018/09/19 40000 14000 iabilit No Not Not Yes

Properties Co. 29 years

y

Ltd.Kunshan

Kangsheng Joint-l

2019/09/ Three

Investment 2018/09/19 24500 24500 iabilit No Not Not Yes

23 years

Development y

Co. Ltd.Jiangxi Xinxin

Joint-l

Jian’an 2016/12/

10000 10000 iabilit No Not Not Not Not

Engineering 12

y

Co. Ltd.Jiangxi

Zhongyi Joint-l

2016/12/

Decoration 10000 10000 iabilit No Not Not Not Not12

Materials Co. y

Ltd.Jiangxi Shanshi

Joint-l

Technological 2016/12/

10000 10000 iabilit No Not Not Not Not

Development 12

y

Co. Ltd.Total approved line for such

Total actual amount of such guarantees in the

guarantees in the Reporting 40000 0

Reporting Period (A2)

Period (A1)

Total approved line for such

Total actual balance of such guarantees at the end of

guarantees at the end of the 133700 68500

the Reporting Period (A4)

Reporting Period (A3)

Guarantees provided between the Company and subsidiaries

Disclosur Line of Actual Actual Colla Counter Term Having Guaran

Type of

Obligor e date of guarant occurrence guarant teral guarante of expired tee for

guarantee

the ee date ee (if e (if guarant or not a

guarantee amount any) any) ee related

line party or

announce not

ment

Joint-liabil One

2020/8/6 3000 No Not Not Not

ity year

2017/7/3 Joint-liabil One

2020/10/19 3000 No Not Not Not

0 ity year

Anhui

2018/5/2 Joint-liabil One

Tongchua 90000 2021/1/21 5000 No Not Not Not

2 and ity year

ng

2018/9/1 Joint-liabil One

2021/2/25 4500 No Not Not Not

8 ity year

Joint-liabil One

2021/5/12 3500 No Not Not Not

ity year

2017/3/3 Joint-liabil One

Hong 2020/12/28 20000 No Not Not Not

0 and 35500 ity year

Kong

2018/10/ 0 Joint-liabil One

Konka 2021/2/26 9690 No Not Not Not

31 ity year

Boluo

2018/3/3 Joint-liabil Three

Konka 5000 2020/8/19 2480 No Not Not Not

0 ity years

Precision

Joint-liabil One

2020/7/24 10000 No Not Not Not

ity year

Electroni Joint-liabil One

2020/8/14 8000 No Not Not Not

cs 2018/9/1 35000 ity year

Technolo 9 0 Joint-liabil One

2020/11/16 50000 No Not Not Not

gy ity year

Joint-liabil One

2021/2/24 58000 No Not Not Not

ity year

2018/9/1 Joint-liabil One

2021/2/8 5000 No Not Not Not

Donggua 9 and ity year90000

n Konka 2021/3/2 Joint-liabil Ten

2021/6/23 80000 No Not Not Not

3 ity years

Other One

Joint-liabil sharehol year

2020/6/5 24000 No Not Not

ity der of and a

Econ half

Econ Joint-liabil Technol One

2018/9/1 12000 2020/8/21 5000 No Not Not

Technolo ity ogy year

9 0

gy Joint-liabil provides One

2020/9/22 5000 No Not Not

ity a year

Joint-liabil counter One

2021/1/29 3000 No Not Not

ity guarante year

2021/3/24 5000 Joint-liabil No e for the One Not Not

ity Compan year

Joint-liabil y for One

2021/6/8 8800 No Not Not

ity 49% of year

Joint-liabil the One

2021/6/18 5000 No Not Not

ity guarante year

Joint-liabil e line One

2021/6/28 10000 No Not Not

ity year

Joint-liabil Other Two

2020/11/12 5800 No Not Not

ity sharehol years

Joint-liabil der of Three

2020/12/25 2000 No Not Not

ity XingDa years

Joint-liabil HongYe Two

2021/5/31 1250 No Not Not

ity provides years

a

XingDa 2018/9/1 counter10000

HongYe 9 guarante

e for the

Joint-liabil Compan Two

2021/5/31 750 No Not Not

ity y for years

49% of

the

guarante

e line

Two

Joint-liabil years

2019/3/18 11961 No Not Not

ity and a

Other half

sharehol

Joint-liabil Three

2020/11/6 10000 No der of Not Not

ity years

Jiangxi

Joint-liabil One

2021/6/26 6000 No Konka Not Not

ity year

provides

Joint-liabil Three

2019/6/26 5500 No a Not Not

ity years

Jiangxi 2018/10/ counter

60000 Joint-liabil Three

Konka 31 2019/10/30 6500 No guarante Not Not

ity years

e for the

Joint-liabil Two

2020/3/20 990 No Compan Not Not

ity years

y for

Joint-liabil One

2020/8/4 3000 No 49% of Not Not

ity year

the

Joint-liabil One

2020/9/29 10000 No guarante Not Not

ity year

e line

Joint-liabil Two

2020/12/21 5000 No Not Not

ity years

2020/12/30 1000 Joint-liabil No Three Not Not

ity years

Joint-liabil Other Three

2020/5/19 5000 No Not Not

ity sharehol years

Joint-liabil der of Two

2020/5/29 3479 No Not Not

ity Xinfeng years

Joint-liabil Microcr Three

2020/12/8 2100 No Not Not

ity ystalline years

Joint-liabil provides One

2020/12/28 7200 No Not Not

Xinfeng ity a year

2019/3/3

Microcry 25000 counter0

stalline guarante

e for the

Compan

Joint-liabil One

2021/6/18 7200 No y for Not Not

ity year

49% of

the

guarante

e line

Joint-liabil Other Three

2019/6/26 10000 No Not Not

ity sharehol years

Joint-liabil der of Three

2019/12/20 5000 No Not Not

ity Jiangxi years

Joint-liabil High Three

2020/1/8 5000 No Not Not

ity Transpa years

Joint-liabil rent Two

2020/1/8 5000 No Not Not

ity Substrat years

Jiangxi

High Joint-liabil

e Two

2019/3/3 2020/3/20 990 No provides Not Not

Transpare 45000 ity years0

nt Joint-liabil

a Two

2020/5/29 5975 No

ity counter

Not Not

Substrate years

guarante One

Joint-liabil e for the year

2020/6/24 7000 No Not Not

ity Compan and a

y for half

49% of

Joint-liabil the Three

2020/7/14 6000 No Not Not

ity guarante years

e line

2018/3/3

Sichuan 1 and Joint-liabil Three

65000 2019/3/18 4000 No No Not Not

Konka 2021/3/2 ity years3

Other

sharehol

der of

Pengrun

Technol

ogy

provides

Pengrun a

2018/9/1 Joint-liabil One

Technolo 20000 2020/8/25 5000 No counter Not Not

9 ity year

gy guarante

e for the

Compan

y for

49% of

the

guarante

e line

Ningbo

Joint-liabil One

Kanghanr 2020/6/6 18000 2020/7/27 6000 No No Not Not

ity year

ui

Other

sharehol

der of

Yibin

Kangrun

provides

a

Yibin 2020/10/ Joint-liabil counter Four

10000 2020/11/13 10000 No Not Not

Kangrun 24 ity guarante years

e for the

Compan

y for

33% of

the

guarante

e line

Telecom

municatio

2017/3/3 Joint-liabil One

n 50000 2020/8/26 7500 No No Not Not

0 ity year

Technolo

gy

Joint-liabil Other One

Anhui 2017/3/3 11000 2020/11/25 10000 No Not Not

ity sharehol year

Konka 1 0

2020/12/24 26800 Joint-liabil No der of One Not Not

ity Anhui year

Joint-liabil Konka One

2021/3/25 20000 No Not Not

ity provides year

a

counter

guarante

e for the

Joint-liabil Compan One

2021/4/2 5500 No Not Not

ity y for year

22% of

the

guarante

e line

Total approved line for such guarantees in the Reporting Total actual amount of such guarantees 23819393600

Period (B1) in the Reporting Period (B2) 0

Total approved line for such guarantees at the end of the Total actual balance of such guarantees 562462356572

Reporting Period (B3) at the end of the Reporting Period (B4) 5

Guarantees provided between subsidiaries

Disclosur

Count Guaran

e date of

Actual er Term tee for

the Line of Actual Collater Having

guarant Type of guara of a

Obligor guarantee guarant occurrence al (if expired

ee guarantee ntee guarant related

line ee date any) or not

amount (if ee party or

announce

any) not

ment

Sichuan Seven Seven

14000 2018/05/28 14000 Not Not

Konka years years

Rushan

Yike

Water

Environm Ten Ten

29000 2016/12/29 29000 Not Not

ent years years

Managem

ent Co.Ltd.Wuhan

Runyuan

Wastewat

2020/01/ Twenty Twenty

er 55200 2020/01/20 55200

21 years years

Treatmen

t Co.Ltd.Subei 2020/03/ Fifteen Fifteen

77600 2020/03/10 77600 Not

Mongol 24 years years

Autonom

ous

County

Kangrun

Water

Co. Ltd.Dayi Other

Kangrun 2020/05/ Fifteen share Fifteen

27400 2020/04/29 27400 Not

Water 13 years holde years

Co. Ltd. r

provi

Xi’an des a

Gaoling count

Kangrun er

Environm 2020/12/ Fifteen guara Fifteen

24571 2020/12/17 24571

ental 17 years ntee years

Engineeri for

ng Co. the

Ltd. Comp

any

Mengche

ng

Sevente

Kangrun 2021/2/2 12340 Joint-liabil

2021/1/27 93400 No No en Not Not

Anjian 6 0 ity

years

Water

Co. Ltd.Xi’an

Gaoling

Kangrun Other

Environm 2021/2/2 20000 Joint-liabil share Fifteen

2021/2/5 20000 No Not Not

ental 6 ity holde years

Engineeri r

ng Co. provi

Ltd. des a

Tongchua count

n er

Kangrun guara

Honghui ntee

12658 12658 Joint-liabil Fourtee

Environm 2021/4/9 2021/3/25 No for Not Not

ity n years

ental the

Managem Comp

ent Co. any

Ltd.Lushan 2021/5/3 95000 2021/4/16 25000 Joint-liabil No sixteen Not Not

Kangrun 1 ity years

Environm

ental

Managem

ent Co.Ltd.Total approved line for such guarantees in the Reporting Total actual amount of such guarantees 15105251058

Period (C1) in the Reporting Period (C2) 8

Total approved line for such guarantees at the end of the Total actual balance of such guarantees 37882478829

Reporting Period (C3) at the end of the Reporting Period (C4) 9

Total guarantee amount (total of the three kinds of guarantees above)

Total guarantee line approved in the Reporting Period Total actual guarantee amount in the

644658 389248

(A1+B1+C1) Reporting Period (A2+B2+C2)

Total actual guarantee balance at the

Total approved guarantee line at the end of the Reporting 100979

2969101 end of the Reporting Period

Period (A3+B3+C3) 4

(A4+B4+C4)

Total actual guarantee amount (A4+B4+C4) as %

122.00%

of the Company’s net assets

Of which:

Balance of guarantees provided for shareholders actual controller and their related parties (D) 38500

Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 976794

Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 59595710097

Total of the three amounts above (D+E+F)94

Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) N/A

Provision of external guarantees in breach of the prescribed procedures (if any) N/A

Compound guarantees:

None

3. Cash Entrusted for Wealth Management

√ Applicable □ Not applicable

Unit: RMB’0000

Unrecovered

Unrecovered overdue amount

Type Funding source Amount Undue amount

overdue amount with provision for

impairment

Bank financial

Self-owned 61990.62

products

Total 61990.62

High-risk wealth management transactions with a significant single amount or with low security

low liquidity or no principal protection:

□ Applicable √ Not applicable

Situation where the principal is expectedly irrecoverable or an impairment may be incurred:

□Applicable √ Not applicable

4. Major Routine Contracts

□Applicable √ Not applicable

5. Other Major Contracts

□Applicable √ Not applicable

No such cases in the Reporting Period.XIII Other Significant Events

√ Applicable □ Not applicable

(I) Non-public offering of corporate bonds: Currently the non-public offering of corporate bonds of

RMB2.3 billion was fully issued by three tranches on 9 January 2021 21 May 2021 and 9 July

2021 respectively. The public offering of corporate bonds of RMB2.7 billion has been reviewed at

the Shareholders' General Meeting of Konka (hereinafter referred to as the "Company") and

relevant matters are being promoted as planned.(II) Initiation and establishment of funds: The total units of the Oriental-Konka Industry M&A Fund

worth RMB1001000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500

million accounting for 49.95% of the total units. By the date of this report Shenzhen Konka

Investment Holding Co. Ltd. has contributed RMB385980000. The fund invested in Jiangxi

Yahua Electronic Materials Co. Ltd. Genew Technologies Co. Ltd. etc. The total units of the

Kunshan-CITIC-Konka Emerging Industry Development Investment Fund worth

RMB1006000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500 million

accounting for 49.7% of the total units. By the date of this report Shenzhen Konka Investment

Holding Co. Ltd. has contributed RMB43810000. The fund invested in UNIONTECH Hercules

Microsystems (HME) etc. The total units of the Tongxiang Wuzhen Jiayu Digital Economic

Industry Fund worth RMB500 million. Shenzhen Konka Investment Holding Co. Ltd. contributed

RMB200 million accounting for 40% of the total units. By the date of this report Shenzhen Konka

Investment Holding Co. Ltd. has contributed RMB120000000. The fund invested in Feidi

Technology (Shenzhen) Co. Ltd. CASICLOUD etc. The Yibin Kanghui Electronic Information

Industry Equity Investment Fund the Yancheng Kangyan Industry Investment Fund and the

Chongqing Kangxin Equity Investment Fund have been filed with the Asset Management

Association of China (AMAC). The total units of Yancheng Kangyan Industry Investment Fun

worth RMB3000 million. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka

Capital Equity Investment Management Co. Ltd. contributed RMB1201500000 accounting for

40.05% of the total units. By the date of this report Shenzhen Konka Investment Holding Co. Ltd.and Shenzhen Konka Capital Equity Investment Management Co. Ltd. have contributed

RMB81060000. The fund invested in Anhui Sinonet & Xinlong Science & Technology Co. Ltd.(III) Disclosure index of significant information

Link on

Announc

http://w

ement Date Title Page on newspaper

ww.cninf

No.o.com.cn

Announcement on Issuance Results of Non-public Offering of Securities Times B48 Shanghai http://ww

2021-01 2021-1-9

Corporate Bonds (Tranche I) in 2021 Securities News 11 etc. w.cninfo.Indicative Announcement on Preparation for Transfer of 17% Securities Times B15 Shanghai com.cn/n

2021-02 2021-1-14

of Equity in Yantai Kangyun Industry Development Co. Ltd. Securities News 22 etc. ew/index

2020 Result Forecast Securities Times B22 Shanghai

2021-03 2021-1-30

Securities News 67 etc.Announcement on Progress of Security for Controlling Securities Times B22 Shanghai

2021-04 2021-1-30

Company Securities News 67 etc.Announcement on Transfer of 17% of Equity in Yantai Securities Times B13 Shanghai

2021-05 2021-2-10

Kangyun Industry Development Co. Ltd. Securities News 72 etc.Announcement on Signing Project Admission Agreement Securities Times B13 Shanghai

2021-06 2021-2-10

with Xi'an International Port District Management Committee Securities News 72 etc.Announcement on Resignation of Chairman of Board of Securities Times B54 Shanghai

2021-07 2021-2-25

Supervisors Securities News 38 etc.Notice on Convening 2021 First Extraordinary General Securities Times B11 Shanghai

2021-08 2021-2-27

Meeting Securities News 33 etc.Announcement on Providing Financial Assistance to Yantai

Securities Times B11 Shanghai

2021-09 2021-2-27 Kangyun Industry Development Co. Ltd. at Shareholding

Securities News 33 etc.Ratio

Announcement on Some Accounting Policy Changes Securities Times B11 Shanghai

2021-10 2021-2-27

Securities News 33 etc.Announcement on Resolutions of 11th Meeting of the Ninth Securities Times B11 Shanghai

2021-11 2021-2-27

Board of Supervisors Securities News 33 etc.Announcement on Resolutions of 39th Meeting of the Ninth Securities Times B11 Shanghai

2021-12 2021-2-27

Board of Directors Securities News 33 etc.Announcement on Progress of Security for Controlling Securities Times B11 Shanghai

2021-13 2021-2-27

Company Securities News 33 etc.Announcement on Transfer of 39% of Equity in Shanghai Securities Times B23 Shanghai

2021-14 2021-3-2

Konka Green Technology Co. Ltd. Securities News 49 etc.Announcement on Resolutions of 2021 First Extraordinary Securities Times B40 Shanghai

2021-15 2021-3-16

General Meeting Securities News 81 etc.Announcement on Resolutions of 12th Meeting of the Ninth Securities Times B40 Shanghai

2021-16 2021-3-16

Board of Supervisors Securities News 81 etc.Announcement on Receipt of Government Grant by Wholly Securities Times B10 Shanghai

2021-17 2021-3-20

Owned Subsidiary Securities News 73 etc.Announcement on Progress of Security for Wholly Owned Securities Times B87 Shanghai

2021-18 2021-3-20

Subsidiary Securities News 73 etc.Announcement on Resolutions of 13th Meeting of the Ninth Securities Times B94 Shanghai

2021-19 2021-3-24

Board of Supervisors Securities News 105 etc.Announcement on Expected Routine Connected Transactions Securities Times B93 Shanghai

2021-20 2021-3-24

in 2021 Securities News 105 etc.Announcement on Provision of Reserves for Asset Securities Times B94 Shanghai

2021-21 2021-3-24

Impairment for 2020 Securities News 105 etc.Securities Times B94 Shanghai

2021-22 2021-3-24 Announcement on Plan of Profit Distribution for 2020

Securities News 105 etc.Announcement on Engagement of Annual Financial Securities Times B95 Shanghai

2021-23 2021-3-24

Statement Auditor and Internal Control Auditor for 2021 Securities News 105 etc.Securities Times B94 Shanghai

2021-24 2021-3-24 Announcement on External Security

Securities News 105 etc.Announcement on Providing Security Limit to and

Securities Times B95 Shanghai

2021-25 2021-3-24 Conducting Connected Transaction with Shareholding

Securities News 106 etc.Company

Securities Times B93 Shanghai

2021-26 2021-3-24 Notice on Convening 2020 Shareholders' General Meeting

Securities News 106 etc.Securities Times B93 Shanghai

2021-27 2021-3-24 Abstract of 2020 Annual Report

Securities News 105 etc.2021-28 2021-3-24 2020 Annual Report

Announcement on Resolutions of 40th Meeting of the Ninth Securities Times B93 Shanghai

2021-29 2021-3-24

Board of Directors Securities News 106 etc.Indicative Announcement on Preparation for Transfer of 51% Securities Times B123 Shanghai

2021-30 2021-3-27

of Equity in Shenzhen Kangxin Real Estate Co. Ltd. Securities News 56 etc.Announcement on Progress of Security for Controlling Securities Times B123 Shanghai

2021-31 2021-3-27

Subsidiary Securities News 56 etc.Securities Times B27 Shanghai

2021-32 2021-3-30 Announcement on Holding 2020 Online Result Release

Securities News 120 etc.Announcement on Progress of Transfer of 17% of Equity in Securities Times B27 Shanghai

2021-33 2021-4-1

Yantai Kangyun Industry Development Co. Ltd. Securities News 72 etc.Securities Times B120 Shanghai

2021-34 2021-4-10 Announcement on Security for Controlling Company

Securities News 137 etc.Announcement on Progress of Transfer of 39% of Equity in Securities Times B068 Shanghai

2021-35 2021-4-14

Shanghai Konka Green Technology Co. Ltd. Securities News 54 etc.Securities Times B26 Shanghai

2021-36 2021-4-15 2021Q1 Result Forecast

Securities News 136 etc.Announcement on Resolutions of 2020 Shareholders' General Securities Times B100 Shanghai

2021-37 2021-4-20

Meeting Securities News 152 etc.2021-38 2021-4-21 Announcement on Correction of 2020 Annual Report Securities Times B56 Shanghai

Securities News 118 etc.Indicative Announcement on Preparation for Transfer of Securities Times B56 Shanghai

2021-39 2021-4-21

Some of Equity in ECON TECH Securities News 118 etc.Announcement on Resolutions of 41st Meeting of the Ninth Securities Times B25 Shanghai

2021-40 2021-4-29

Board of Directors Securities News 152 etc.Announcement on Transfer of 51% of Equity in Shenzhen Securities Times B25 Shanghai

2021-41 2021-4-29

Kangxin Real Estate Co. Ltd. Securities News 152 etc.Securities Times B25 Shanghai

2021-42 2021-4-29 Main Body of 2021Q1 Report

Securities News 152 etc.2021-43 2021-4-29 Full Text of 2021Q1 Report

Announcement on Signing Cooperation Framework

Securities Times B26 Shanghai

2021-44 2021-5-7 Agreement with Shenzhen Electronic Industries Association

Securities News 88 etc.(SZEIA)

Announcement on Issuance Results of Non-public Offering of Securities Times B40 Shanghai

2021-45 2021-5-22

Corporate Bonds (Tranche II) in 2021 Securities News 104 etc.Announcement on Completion of Private Equity Fund Filing

and Registration of Chongqing Kangxin Semiconductor Securities Times B18 Shanghai

2021-46 2021-5-25

Industry Fund whose Establishment is Participated in by the Securities News 72 etc.Company

Securities Times B35 Shanghai

2021-47 2021-5-27 Announcement on Distribution of 2020 Annual Equity

Securities News 81 etc.Securities Times B21 Shanghai

2021-48 2021-6-1 Announcement on Accumulative Lawsuits and Arbitrations

Securities News 49 etc.Announcement on Resolutions of 42nd Meeting of the Ninth Securities Times B21 Shanghai

2021-49 2021-6-1

Board of Directors Securities News 49 etc.Announcement on Providing Advertising Services to and

Securities Times B21 Shanghai

2021-50 2021-6-1 Conducting Connected Transaction with Overseas Chinese

Securities News 49 etc.Town Holdings Company (OCT Group)

Securities Times B21 Shanghai

2021-51 2021-6-1 Announcement on Security for Controlling Company

Securities News 49 etc.Announcement on Progress of Transfer of 51% of Equity in Securities Times B21 Shanghai

2021-52 2021-6-18

Shenzhen Kangxin Real Estate Co. Ltd. Securities News 96 etc.Announcement on Reply to Inquiry Letter on 2020 Annual Securities Times B18 Shanghai

2021-53 2021-6-19

Report from Shenzhen Stock Exchange Securities News 38 etc.XIV Significant Events of Subsidiaries

□Applicable √ Not applicable

Part VII Share Changes and Shareholder Information

I Share Changes

1. Share Changes

Unit: share

Increase/decrease in the Reporting Period

Before After

(+/-)

Sha

res

as

divi

Shares as

den

dividend

Percent d Percent

New converted Oth Subt

Shares age con Shares age

issues from er otal

(%) vert (%)

capital

ed

reserves

fro

m

prof

it

1. Restricted shares 19500 0.00% 19500 0.00%

1.3 Shares held by

other domestic 19500 0.00% 19500 0.00%

investors

Shares held by

domestic legal person

Shares held by

domestic natural 19500 0.00% 19500 0.00%

persons

100.00 240792590 100.002407925908

2. Unrestricted shares % 8 %

2.1 RMB-denominated 159657430 66.31

1596574300 66.31%

ordinary shares 0 %

2.2 Domestically listed 33.69

811351608 33.69% 811351608

foreign shares %

100.00 240794540 100.00

3. Total shares 2407945408

% 8 %

Reasons for the share changes:

□ Applicable √ Not applicable

Approval of the share changes:

□Applicable √ Not applicable

Transfer of share ownership:

□ Applicable √ Not applicable

Progress on any share repurchase:

□ 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 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 Shareholders and Their Holdings as at the Period-End

Unit: share

Number of ordinary Number of preferred shareholders with resumed106460

shareholders voting rights (if any) (see note 8)

5% or greater ordinary shareholders or top 10 ordinary shareholders

Shares in

pledge

marked or

Share Total

Increase/dec Restricted frozen

Nature of holdin ordinary Unrestricte

rease in the ordinary S

Name of shareholder shareholde g shares held d ordinary

Reporting shares h

r percen at the shares held

Period held a

tage period-end Status

r

e

s

OVERSEAS CHINESE State-owne

21.75 52374693

TOWN ENTERPRISES CO. d legal 523746932 0 0

% 2

LTD person

CITIC SECURITIES Foreign18000111

BROKERAGE (HONG legal 7.48% 180001110 -2099092 00

KONG) CO. LTD. person

WANG JINGFENG Domestic 4.61% 111000000 52672242 0 11100000

natural 0

person

Foreign

GUOYUAN SECURITIES

legal 2.40% 57850325 -250000 0 57850325

BROKER (HK) CO. LTD.person

Foreign

HOLYTIME GROUP

legal 2.38% 57289100 0 0 57289100

LIMITED

person

Foreign

GAOLING FUNDL.P. legal 2.19% 52801250 0 0 52801250

person

Domestic

LI HANFA natural 1.07% 25680000 25680000 0 25680000

person

Foreign

NAM NGAI natural 0.94% 22567540 0 0 22567540

person

CHINAMERCHANTS State-owne

SECURITIES (HK) d legal 0.80% 19358220 -132100 0 19358220

LIMITED person

Domestic

ZHENG LIN natural 0.52% 12500000 12500000 0 12500000

person

Strategic investor or general legal person becoming a top-10 ordinary shareholder due

N/A

to rights issue (if any) (see note 3)

Happy Bloom Investment Limited a wholly-owned subsidiary of the

Company’s first majority shareholder Overseas Chinese Town

Enterprises Co. (“OCT Group” for short) holds 180001110 and

18360000 ordinary shares in the Company respectively through CITIC

Related or acting-in-concert parties among the

Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants

shareholders above

Securities (HK) Limited. Happy Bloom Investment Limited and

Overseas Chinese Town Enterprises Co. are parties acting in concert.Other than that it is unknown whether the other shareholders are

related parties or acting-in-concert parties or not.Explain if any of the shareholders above was involved

in entrusting/being entrusted with voting rights or N/A

waiving voting rights

Special account for share repurchases (if any) among

None

the top 10 shareholders (see note 11)

Top 10 unrestricted ordinary shareholders

Unrestricted ordinary shares held at the Shares by type

Name of shareholder

period-end Type Shares

OVERSEAS CHINESE TOWN RMB-denominated

523746932 523746932

ENTERPRISES CO. LTD ordinary stock

CITIC SECURITIES BROKERAGE Domestically listed

180001110 180001110

(HONG KONG) CO. LTD. foreign stock

RMB-denominated

WANG JINGFENG 111000000 111000000

ordinary stock

GUOYUAN SECURITIES BROKER Domestically listed

57850325 57850325

(HK) CO. LTD. foreign stock

Domestically listed

HOLYTIME GROUP LIMITED 57289100 57289100

foreign stock

Domestically listed

GAOLING FUNDL.P. 52801250 52801250

foreign stock

RMB-denominated

LI HANFA 25680000 25680000

ordinary stock

Domestically listed

NAM NGAI 22567540 22567540

foreign stock

CHINAMERCHANTS SECURITIES Domestically listed

19358220 19358220

(HK) LIMITED foreign stock

RMB-denominated

ZHENG LIN 12500000 12500000

ordinary stock

Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first

Related or acting-in-concert parties majority shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for

among top 10 unrestricted ordinary short) holds 180001110 and 18360000 ordinary shares in the Company respectively

shareholders as well as between top 10 through CITIC Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants

unrestricted ordinary shareholders and Securities (HK) Limited. Happy Bloom Investment Limited and Overseas Chinese

top 10 shareholders Town Enterprises Co. are parties acting in concert. Other than that it is unknown

whether the other shareholders are related parties or acting-in-concert parties or not.Wang Jingfeng holds 111000000 A-shares in the Company through his securities

account for customer credit trading guarantee in Guotai Junan Securities Co. Ltd.Top 10 ordinary shareholders involved

Li Hanfa holds 25680000 A-shares in the Company through his securities account for

in securities margin trading (if any)

customer credit trading guarantee in Western Securities Co. Ltd.(see note 4)

Zheng Lin holds 12500000 A-shares in the Company through his securities account

for customer credit trading guarantee in Ping An Securities Co. Ltd.Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted

ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.□ Yes √ No

No such cases in the Reporting Period.IV Change in Shareholdings of Directors Supervisors and Senior Management

□Applicable √ Not applicable

No changes occurred to the shareholdings of the directors supervisors and senior management in

the Reporting Period. See the 2020 Annual Report for more details.V Change of the Controlling Shareholder or the De Facto Controller

Change of the controlling shareholder in the Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period

□ Applicable √ Not applicable

No such cases in the Reporting Period.Part VIII Preference Shares

□Applicable √ Not applicable

No Preference shares in the Reporting Period.Part IX 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

Bonds

Inter Way of

Release Value Maturity balance Trade

Name Abbr. Code est redemptio

date date date (RMB’ place

rate n

0000)

Interests

shall be

paid every

Privately placed Shenz

year and

corporate bonds in 2019 14 14 14 hen

19 Konka 11441 5.00 the

of Konka Group Co. January January January - Stock

01 8 % principals

Ltd (Tranche I) (Variety 2019 2019 2022 Excha

shall be

I) nge

repaid

when

expired.Interests

shall be

paid every

Privately placed Shenz

year and

corporate bonds in 2019 14 14 14 hen

19 Konka 11442 5.00 the

of Konka Group Co. January January January 150000 Stock

02 3 % principals

Ltd (Tranche I) (Variety 2019 2019 2022 Excha

shall be

II) nge

repaid

when

expired.Interests

Privately placed shall be Shenz

corporate bonds in 2019 paid every hen

19 Konka 11448 3 June 3 June 3 June 4.50

of Konka Group Co. - year and Stock

03 8 2019 2019 2022 %

Ltd (Tranche II) the Excha

(Variety I) principals nge

shall be

repaid

when

expired.Interests

shall be

paid every

Privately placed Shenz

year and

corporate bonds in 2019 hen

19 Konka 11448 3 June 3 June 3 June 4.70 the

of Konka Group Co. 50000 Stock

04 9 2019 2019 2022 % principals

Ltd (Tranche II) Excha

shall be

(Variety II) nge

repaid

when

expired.Interests

shall be

paid every

Privately placed Shenz

year and

corporate bonds in 2019 hen

19 Konka 11452 22 July 22 July 22 July 4.53 the

of Konka Group Co. - Stock

05 3 2019 2019 2022 % principals

Ltd (Tranche III) Excha

shall be

(Variety I) nge

repaid

when

expired.Interests

shall be

paid every

Privately placed Shenz

year and

corporate bonds in 2019 hen

19 Konka 11452 22 July 22 July 22 July 4.70 the

of Konka Group Co. 70000 Stock

06 4 2019 2019 2022 % principals

Ltd (Tranche III) Excha

shall be

(Variety II) nge

repaid

when

expired.Interests

shall be

paid every

Shenz

Privately placed year and

8 8 hen

corporate bonds in 2021 21 Konka 11489 8 January 4.46 the

January January 100000 Stock

of Konka Group Co. 01 4 2021 % principals

2021 2024 Excha

Ltd (Tranche I) shall be

nge

repaid

when

expired.Privately placed 21 Konka 13300 21 May 21 May 21 May 50000 4.00 Interests Shenz

corporate bonds in 2021 02 3 2021 2021 2024 % shall be hen

of Konka Group Co. paid every Stock

Ltd (Tranche II) year and Excha

the nge

principals

shall be

repaid

when

expired.Interests

shall be

paid every

Shenz

Privately placed year and

hen

corporate bonds in 2021 21 Konka 13304 9 July 9 July 9 July 3.95 the

80000 Stock

of Konka Group Co. 03 0 2021 2021 2024 % principals

Excha

Ltd (Tranche III) shall be

nge

repaid

when

expired.“19 Konka 01” ” 19 Konka 02” “19 Konka 03” “19 Konka 04” “19 Konka 05” “19Konka 06” were placed privately to qualified institutional investors meeting the

requirements of management method for investors eligibility in bonds market of

Appropriate arrangement of the

Shenzhen Stock Exchange and “21 Konka 01” “21 Konka 02” “21 Konka 03” were

investors (if any)

placed privately to professional investors meeting the requirements of management

method for investors eligibility of Shenzhen Stock Exchange which not exceeding 200

persons .Applicable trade mechanism Comprehensive agreement trade platform of Shenzhen Stock Exchange

Risk of delisting (if any) and

No

countermeasures

Overdue bonds

□ Applicable √ Not applicable

2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the

Investor Protection Clause

√ Applicable □ Not applicable

"19 Konka 01" "19 Konka 03" and "19 Konka 05" are attached with the issuer's option of adjusting

coupon rate: and the investor's put option. In the Reporting Period the execution of the above

clauses are as follows:

(I) On 14 January 2021 for "19 Konka 01" the issuer's option of adjusting coupon rate and

investor's put option were exercised. Specifically: The issuer adjusted the coupon rate for the last

year within the duration to 2.80% the sell-back quantity to 10 million shares and the sell-back

amount to RMB1 billion. The sell-back principal and the interest of the part to which the put option

is exercised in the current period have been transferred in full to the account specified by China

Securities Depository and Clearing Corporation Limited (CSDC). "19 Konka 01" has been sold

back in full and de-listed from the stock exchange.(II) On 3 June 2021 for "19 Konka 03" the issuer's option of adjusting coupon rate and the

investor's put option were exercised. Specifically: The issuer adjusted the coupon rate for the last

year within the duration to 2.80% the sell-back quantity to 5 million shares and the sell-back

amount to RMB500 million. The sell-back principal and the interest of the part to which the put

option is exercised in the current period have been transferred in full to the account specified by

CSDC. "19 Konka 03" has been sold back in full and de-listed from the stock exchange.(III) On 22 July 2021 for "19 Konka 05" the issuer's option of adjusting coupon rate and investor's

put option were exercised. Specifically: The issuer adjusted the coupon rate for the last year within

the duration to 2.80% the sell-back quantity to 8 million shares and the sell-back amount to

RMB800 million. The sell-back principal and the interest of the part to which the put option is

exercised in the current period have been transferred in full to the account specified by CSDC. "19

Konka 05" has been sold back in full and de-listed from the stock exchange.3. Adjustment of Credit Rating Results during the Reporting Period

□Applicable √ Not applicable

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 The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the

Company up the Period-end

Unit: RMB’0000

Item 30 June 2021 30 June 2020 Increase/decrease

Current ratio 89.14% 93.18% -4.04%

Asset-liability ratio 79.49% 78.51% 0.98%

Quick ratio 71.44% 76.42% -4.98%

H1 2021 H1 2020 Increase/decrease

Net profit after deducting -71012.46 -65001.05 -9.25%

non-recurring profit or loss

Debt/EBITDA ratio 3.19% 3.28% -0.09%

Times interest earned 1.15 1.22 -5.74%

Times interest earned of cash -1.50 -0.95 -57.26%

Times interest earned of

1.72 1.73 -0.58%

EBITDA

Loan repayment rate 100.00% 100.00% 0.00%

Interest coverage 100.00% 100.00% 0.00%

Part X Financial Statements

I Independent Auditor’s Report

Are these interim financial statements audited by an independent auditor?

□ Yes √ No

The interim financial statements of the Company have not been audited by an independent auditor.II Financial Statements

Currency unit for the financial statements and the notes thereto: RMB

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.30 June 2021

Unit: RMB

Item 30 June 2021 31 December 2020

Current assets:

Monetary assets 5808945725.97 5431530180.90

Settlement reserve

Interbank loans granted

Held-for-trading financial assets 618249541.66

Derivative financial assets

Notes receivable 1517173391.11 2358180193.96

Accounts receivable 4549591026.59 3900897623.59

Accounts receivable financing 111375140.87 84057197.44

Prepayments 1245612713.12 1183270543.41

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 2002670932.02 2145736640.60

Including: Interest receivable 54484552.15 45109425.85

Dividends receivable 547848.62 4947848.62

Financial assets purchased under

resale agreements

Inventories 5159261206.91 4521300677.41

Contract assets 3278002380.34 2870006710.39

Assets held for sale

Current portion of non-current

69003761.31 112310158.82

assets

Other current assets 2245900952.01 1913146483.39

Total current assets 25987537230.25 25138685951.57

Non-current assets:

Loans and advances to customers

Investments in debt obligations

Investments in other debt

obligations

Long-term receivables 390636999.59 399497204.03

Long-term equity investments 4465804131.62 4375833584.65

Investments in other equity

25343293.16 25343293.16

instruments

Other non-current financial assets 2041635385.92 1878154796.76

Investment property 517599145.62 538585668.29

Fixed assets 3355378019.70 3178642017.84

Construction in progress 10099450528.06 9236643931.68

Productive living assets

Oil and gas assets

Right-of-use assets 91722023.03

Intangible assets 1169991792.70 1189191001.51

Development costs 57745.03

Goodwill 675795873.17 675795873.17

Long-term prepaid expense 212945657.99 153198562.82

Deferred income tax assets 1368257105.54 1265916437.39

Other non-current assets 1246223596.72 1820779170.74

Total non-current assets 25660841297.85 24737581542.04

Total assets 51648378528.10 49876267493.61

Current liabilities:

Short-term borrowings 10660328520.00 10990550475.78

Borrowings from the central bank

Interbank loans obtained

Held-for-trading financial

liabilities

Derivative financial liabilities

Notes payable 1084027559.56 1335987026.21

Accounts payable 9842554742.32 9632366325.76

Advances from customers

Contract liabilities 809414528.15 1217367735.94

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 231185917.73 476616244.45

Taxes payable 339046643.99 508214059.16

Other payables 1646751352.19 1999430899.69

Including: Interest payable 214023683.45 220837380.17

Dividends payable

Handling charges and commissions

payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

4327184538.69 376896566.29

liabilities

Other current liabilities 212650019.72 441774317.23

Total current liabilities 29153143822.35 26979203650.51

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 7881025148.48 5964748997.54

Bonds payable 2992708333.32 4993212788.32

Including: Preferred shares

Perpetual bonds

Lease liabilities 68784148.21

Long-term payables 471934338.20 481409849.96

Long-term employee benefits 5178477.38 5248309.14

payable

Provisions 106675570.03 102353567.91

Deferred income 221156075.12 446900524.64

Deferred income tax liabilities 70203372.45 75819231.93

Other non-current liabilities 83705786.99 106475449.02

Total non-current liabilities 11901371250.18 12176168718.46

Total liabilities 41054515072.53 39155372368.97

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 234215703.91 230185310.09

Less: Treasury stock

Other comprehensive income -17166086.08 -16583042.42

Specific reserve

Surplus reserves 1211721109.67 1211721109.67

General reserve

Retained earnings 4440026770.40 4595371391.63

Total equity attributable to owners of

8276742905.90 8428640176.97

the Company as the parent

Non-controlling interests 2317120549.67 2292254947.67

Total owners’ equity 10593863455.57 10720895124.64

Total liabilities and owners’ equity 51648378528.10 49876267493.61

Legal representative: Zhou Bin CFO: Li Chunlei

Head of the financial department: Guo Zhihua

2. Balance Sheet of the Company as the Parent

Unit: RMB

Item 30 June 2021 31 December 2020

Current assets:

Monetary assets 3267327229.79 3481445560.17

Held-for-trading financial assets 298497458.33

Derivative financial assets

Notes receivable 791122441.73 879589355.91

Accounts receivable 7116649107.58 4473251691.85

Accounts receivable financing 5659400.00

Prepayments 857806880.32 1021218285.46

Other receivables 11189761973.66 10034869353.07

Including: Interest receivable 53913996.27 41138869.97

Dividends receivable 746582755.50 749431635.50

Inventories 283635455.44 202406456.36

Contract assets

Assets held for sale

Current portion of non-current

assets

Other current assets 1194303609.77 1020031186.39

Total current assets 24700606698.29 21416968747.54

Non-current assets:

Investments in debt obligations

Investments in other debt

obligations

Long-term receivables

Long-term equity investments 9030712765.79 8806166599.56

Investments in other equity

17940215.36 17940215.36

instruments

Other non-current financial assets 203000000.00 250230000.00

Investment property 399312419.35 406237236.91

Fixed assets 468176972.04 431762044.14

Construction in progress 164703458.80 132464938.18

Productive living assets

Oil and gas assets

Right-of-use assets 5057474.73

Intangible assets 56983456.40 59506272.63

Development costs

Goodwill

Long-term prepaid expense 14736111.41 16532521.69

Deferred income tax assets 1037414801.42 980095292.53

Other non-current assets 11225866.61 10867888.84

Total non-current assets 11409263541.91 11111803009.84

Total assets 36109870240.20 32528771757.38

Current liabilities:

Short-term borrowings 4949529416.45 5052990048.93

Held-for-trading financial

liabilities

Derivative financial liabilities

Notes payable 853626661.37 1344958738.50

Accounts payable 7374735672.62 6811467585.39

Advances from customers

Contract liabilities 1005663444.32 723022740.95

Employee benefits payable 58059951.87 147391317.06

Taxes payable 6030867.92 4094133.23

Other payables 5693492635.27 4275347622.57

Including: Interest payable 207030892.91 215828625.04

Dividends payable

Liabilities directly associated with

assets held for sale

Current portion of non-current

4002494735.07 5867425.49

liabilities

Other current liabilities 1271479.50 6108675.36

Total current liabilities 23944904864.39 18371248287.48

Non-current liabilities:

Long-term borrowings 3432907132.95 2930034612.32

Bonds payable 2992708333.32 4993212788.32

Including: Preferred shares

Perpetual bonds

Lease liabilities 2851542.40

Long-term payables 17633249.67

Long-term employee benefits

payable

Provisions 912275.65 832465.72

Deferred income 40832761.33 61530557.55

Deferred income tax liabilities 2334364.58

Other non-current liabilities 10433597.66 54162098.05

Total non-current liabilities 6480645643.31 8059740136.21

Total liabilities 30425550507.70 26430988423.69

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 109898727.37 112570352.72

Less: Treasury stock

Other comprehensive income -1500000.00 -2682217.31

Specific reserve

Surplus reserves 1227564785.19 1227564785.19

Retained earnings 1940410811.94 2352385005.09

Total owners’ equity 5684319732.50 6097783333.69

Total liabilities and owners’ equity 36109870240.20 32528771757.38

3. Consolidated Income Statement

Unit: RMB

Item H1 2021 H1 2020

1. Revenue 21810161873.08 17524183896.74

Including: Operating revenue 21810161873.08 17524183896.74

Interest income

Insurance premium income

Handling charge and commission income

2. Costs and expenses 22632427029.23 18353408488.70

Including: Cost of sales 20817175713.78 16268993432.88

Interest expense

Handling charge and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and surcharges 44456361.94 29184440.36

Selling expense 667662036.47 969224381.98

Administrative expense 359053667.07 440915780.44

R&D expense 284663467.26 258049586.29

Finance costs 459415782.71 387040866.75

Including: Interest expense 488330464.76 532953584.28

Interest income 78303181.42 124261830.72

Add: Other income 720696356.02 318094852.34

Return on investment (“-” for loss) 322244312.89 598693576.59

Including: Share of profit or loss of joint ventures and

19335816.88 44717625.76

associates

Income from the derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

Gain on changes in fair value (“-” for loss) 40362513.73

Credit impairment loss (“-” for loss) -71392178.06 -39887507.18

Asset impairment loss (“-” for loss) -29538732.82 -1985659.95

Asset disposal income (“-” for loss) 88668.35 98454282.86

3. Operating profit (“-” for loss) 160195783.96 144144952.70

Add: Non-operating income 21618277.79 8661773.48

Less: Non-operating expense 6793873.14 7136875.35

4. Profit before tax (“-” for loss) 175020188.61 145669850.83

Less: Income tax expense 84263268.37 73425522.47

5. Net profit (“-” for net loss) 90756920.24 72244328.36

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net

90756920.24 72244328.36

loss)

5.1.2 Net profit from discontinued operations (“-” for

net loss)

5.2 By ownership

5.2.1 Net profit attributable to owners of the Company as

85449919.57 94701792.63

the parent

5.2.1 Net profit attributable to non-controlling interests 5307000.67 -22457464.27

6. Other comprehensive income net of tax -1547270.99 1158124.63

Attributable to owners of the Company as the parent -583043.66 -316704.47

6.1 Items that will not be reclassified to profit or loss

6.1.1 Changes caused by remeasurements on defined

benefit schemes

6.1.2 Other comprehensive income that will not be

reclassified to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other

equity instruments

6.1.4 Changes in the fair value arising from changes in own

credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss -583043.66 -316704.47

6.2.1 Other comprehensive income that will be reclassified

1486086.18

to profit or loss under the equity method

6.2.2 Changes in the fair value of investments in other debt

obligations

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for investments in other

debt obligations

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

-2069129.84 -316704.47

currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests -964227.33 1474829.10

7. Total comprehensive income 89209649.25 73402452.99

Attributable to owners of the Company as the parent 84866875.91 94385088.16

Attributable to non-controlling interests 4342773.34 -20982635.17

8. Earnings per share

8.1 Basic earnings per share 0.0355 0.0393

8.2 Diluted earnings per share 0.0355 0.0393

Legal representative: Zhou Bin CFO: Li Chunlei

Head of the financial department: Guo Zhihua

4. Income Statement of the Company as the Parent

Unit: RMB

Item H1 2021 H1 2020

1. Operating revenue 1201381406.70 3375446030.89

Less: Cost of sales 1079261558.34 2951099830.85

Taxes and surcharges 2722585.37 2456004.49

Selling expense 153803101.46 346758543.10

Administrative expense 129288020.36 159850052.74

R&D expense 21919059.86 25536247.49

Finance costs 185312072.03 174356605.73

Including: Interest expense 395636089.83 430353727.41

Interest income 249552400.35 242970045.01

Add: Other income 31506992.96 60280939.33

Return on investment (“-” for loss) 196794318.43 508865061.70

Including: Share of profit or loss of joint ventures and

6396453.37 -699839.38

associates

Income from the derecognition of financial assets at

amortized cost (“-” for loss)

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

Gain on changes in fair value (“-” for loss) 1656645.84

Credit impairment loss (“-” for loss) -86149702.67 -10198271.78

Asset impairment loss (“-” for loss) -2818595.77 5726253.37

Asset disposal income (“-” for loss) 98600000.00

2. Operating profit (“-” for loss) -229935331.93 378662729.11

Add: Non-operating income 4699664.41 315565.50

Less: Non-operating expense 5616310.83 225566.38

3. Profit before tax (“-” for loss) -230851978.35 378752728.23

Less: Income tax expense -59671308.58 84301541.05

4. Net profit (“-” for net loss) -171180669.77 294451187.18

4.1 Net profit from continuing operations (“-” for net

-171180669.77 294451187.18

loss)

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

loss)

5. Other comprehensive income net of tax 1182217.31

5.1 Items that will not be reclassified to profit or loss

5.1.1 Changes caused by remeasurements on defined

benefit schemes

5.1.2 Other comprehensive income that will not be

reclassified to profit or loss under the equity method

5.1.3 Changes in the fair value of investments in other

equity instruments

5.1.4 Changes in the fair value arising from changes in own

credit risk

5.1.5 Other

5.2 Items that will be reclassified to profit or loss 1182217.31

5.2.1 Other comprehensive income that will be reclassified

1486086.18

to profit or loss under the equity method

5.2.2 Changes in the fair value of investments in other debt

obligations

5.2.3 Other comprehensive income arising from the

reclassification of financial assets

5.2.4 Credit impairment allowance for investments in other

debt obligations

5.2.5 Reserve for cash flow hedges

5.2.6 Differences arising from the translation of foreign

-303868.87

currency-denominated financial statements

5.2.7 Other

6. Total comprehensive income -169998452.46 294451187.18

7. Earnings per share

7.1 Basic earnings per share

7.2 Diluted earnings per share

5. Consolidated Cash Flow Statement

Unit: RMB

Item H1 2021 H1 2020

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of

20963019142.28 17398919184.79

services

Net increase in customer deposits and interbank deposits

Net increase in borrowings from the central bank

Net increase in loans from other financial institutions

Premiums received on original insurance contracts

Net proceeds from reinsurance

Net increase in deposits and investments of policy

holders

Interest handling charges and commissions received

Net increase in interbank loans obtained

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax rebates 259574846.93 108772128.38

Cash generated from other operating activities 984633539.35 2067915221.82

Subtotal of cash generated from operating activities 22207227528.56 19575606534.99

Payments for commodities and services 20801856591.59 17115676821.64

Net increase in loans and advances to customers

Net increase in deposits in the central bank and in

interbank loans granted

Payments for claims on original insurance contracts

Net increase in interbank loans granted

Interest handling charges and commissions paid

Policy dividends paid

Cash paid to and for employees 1040180023.02 917713468.04

Taxes paid 571610951.43 628428831.21

Cash used in other operating activities 1078341184.55 1990154341.58

Subtotal of cash used in operating activities 23491988750.59 20651973462.47

Net cash generated from/used in operating activities -1284761222.03 -1076366927.48

2. Cash flows from investing activities:

Proceeds from disinvestment 242490592.58 387119277.60

Return on investment 79850437.97 80623751.66

Net proceeds from the disposal of fixed assets intangible

233374028.57 40444106.56

assets and other long-lived assets

Net proceeds from the disposal of subsidiaries and other

133143680.12 3287293.86

business units

Cash generated from other investing activities 726997513.51 1208757541.14

Subtotal of cash generated from investing activities 1415856252.75 1720231970.82

Payments for the acquisition of fixed assets intangible

2434111266.54 1701324660.79

assets and other long-lived assets

Payments for investments 334832168.49 8670001.00

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and

96500000.00

other business units

Cash used in other investing activities 335799856.00 152930416.99

Subtotal of cash used in investing activities 3201243291.03 1862925078.78

Net cash generated from/used in investing activities -1785387038.28 -142693107.96

3. Cash flows from financing activities:

Capital contributions received 82672396.60 94836439.00

Including: Capital contributions by non-controlling

82672396.60 94836439.00

interests to subsidiaries

Borrowings raised 11408374380.36 10423573485.62

Cash generated from other financing activities 595358784.49 945876029.73

Subtotal of cash generated from financing activities 12086405561.45 11464285954.35

Repayment of borrowings 7054124522.30 8790985658.27

Interest and dividends paid 612510498.19 383175132.72

Including: Dividends paid by subsidiaries to

7497000.00 10513500.00

non-controlling interests

Cash used in other financing activities 480205100.51 1033904254.73

Subtotal of cash used in financing activities 8146840121.00 10208065045.72

Net cash generated from/used in financing activities 3939565440.45 1256220908.63

4. Effect of foreign exchange rates changes on cash and

-7488067.32 7043028.89

cash equivalents

5. Net increase in cash and cash equivalents 861929112.82 44203902.08

Add: Cash and cash equivalents beginning of the period 4298056113.24 4493701917.22

6. Cash and cash equivalents end of the period 5159985226.06 4537905819.30

6. Cash Flow Statement of the Company as the Parent

Unit: RMB

Item H1 2021 H1 2020

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of

1579711912.72 3385079007.56

services

Tax rebates 125466130.99 35643807.10

Cash generated from other operating activities 253268585.04 6304828904.25

Subtotal of cash generated from operating activities 1958446628.75 9725551718.91

Payments for commodities and services 2203917150.41 2037612946.86

Cash paid to and for employees 186615478.74 193201951.98

Taxes paid 5362665.96 7317308.11

Cash used in other operating activities 315831641.28 7103806174.57

Subtotal of cash used in operating activities 2711726936.39 9341938381.52

Net cash generated from/used in operating activities -753280307.64 383613337.39

2. Cash flows from investing activities:

Proceeds from disinvestment 336545500.00 395943265.00

Return on investment 7738365.75 15939575.07

Net proceeds from the disposal of fixed assets intangible

208313.77 53456.56

assets and other long-lived assets

Net proceeds from the disposal of subsidiaries and other

business units

Cash generated from other investing activities 3061287812.44 1129057041.14

Subtotal of cash generated from investing activities 3405779991.96 1540993337.77

Payments for the acquisition of fixed assets intangible

100219361.16 44012965.74

assets and other long-lived assets

Payments for investments 416340000.00 966864001.00

Net payments for the acquisition of subsidiaries and

other business units

Cash used in other investing activities 3653620787.61 112930416.99

Subtotal of cash used in investing activities 4170180148.77 1123807383.73

Net cash generated from/used in investing activities -764400156.81 417185954.04

3. Cash flows from financing activities:

Capital contributions received

Borrowings raised 7831733994.04 7094864642.27

Cash generated from other financing activities 4872687703.97 132563907.20

Subtotal of cash generated from financing activities 12704421698.01 7227428549.47

Repayment of borrowings 5460556762.28 6842198610.76

Interest and dividends paid 555580595.63 322326562.77

Cash used in other financing activities 5048804238.24 381866448.33

Subtotal of cash used in financing activities 11064941596.15 7546391621.86

Net cash generated from/used in financing activities 1639480101.86 -318963072.39

4. Effect of foreign exchange rates changes on cash and

-524306.83 3386774.26

cash equivalents

5. Net increase in cash and cash equivalents 121275330.58 485222993.30

Add: Cash and cash equivalents beginning of the period 2910762592.99 1337342186.92

6. Cash and cash equivalents end of the period 3032037923.57 1822565180.22

7. Consolidated Statements of Changes in Owners’ Equity

H1 2021

Unit: RMB

H1 2021

Equity attributable to owners of the Company as the parent

Other equity

instruments

S

P

p

r

e

e

P c

f

er Les i

e

p s: f

Item r Gen

et Tre Other i O Non-controlling

r Capital eral Retained Total owners’ equity

Share capital u Ot asu comprehensive c Surplus reserves th Subtotal interests

e reserves rese earnings

al he ry income r er

d rve

b r sto e

o ck s

s

n e

h

d r

a

s v

r

e

e

s

1. Balance as at the end of the

2407945408.00 230185310.09 -16583042.42 1211721109.67 4595371391.63 8428640176.97 2292254947.67 10720895124.64

period of prior year

Add: Adjustment for change in

accounting policy

Adjustment for correction of

previous error

Adjustment for business

combination under common

control

Other adjustments

2. Balance as at the beginning of

2407945408.00 230185310.09 -16583042.42 1211721109.67 4595371391.63 8428640176.97 2292254947.67 10720895124.64

the Reporting Period

3. Increase/ decrease in the period

4030393.82 -583043.66 -155344621.23 -151897271.07 24865602.00 -127031669.07

(“-” for decrease)

3.1 Total comprehensive

-583043.66 85449919.57 84866875.91 4342773.34 89209649.25

income

3.2 Capital increased and

4030393.82 4030393.82 20522828.66 24553222.48

reduced by owners

3.2.1 Ordinary shares increased

12701396.58 12701396.58

by owners

3.2.2 Capital increased by holders

of other equity instruments

3.2.3 Share-based payments

included in owners’ equity

3.2.4 Other 4030393.82 4030393.82 7821432.08 11851825.90

3.3 Profit distribution -240794540.80 -240794540.80 -240794540.80

3.3.1 Appropriation to

surplus reserves

3.3.2 Appropriation to

general reserve

3.3.3 Appropriation to

-240794540.80 -240794540.80 -240794540.80

owners (or shareholders)

3.3.4 Other

3.4 Transfers within owners’

equity

3.4.1 Increase in capital (or

share capital) from capital

reserves

3.4.2 Increase in capital (or

share capital) from surplus

reserves

3.4.3 Loss offset by surplus

reserves

3.4.4 Changes in defined

benefit schemes transferred to

retained earnings

3.4.5 Other comprehensive

income transferred to retained

earnings

3.4.6 Other

3.5 Specific reserve

3.5.1 Increase in the period

3.5.2 Used in the period

3.6 Other

4. Balance as at the end of the

2407945408.00 234215703.91 -17166086.08 1211721109.67 4440026770.40 8276742905.90 2317120549.67 10593863455.57

Reporting Period

H1 2020

Unit: RMB

H1 2020

Equity attributable to owners of the Company as the parent

Other equity

instruments

P

P

r

e

e

r

f Les

p Sp

e s:

Item e eci Gen

r Tre Other O Non-controlling

t Capital fic eral Retained Total owners’ equity

Share capital r Ot asu comprehensive Surplus reserves th Subtotal interests

u reserves res rese earnings

e he ry income er

a erv rve

d r stoc

l e

s k

b

h

o

a

n

r

d

e

s

s

1. Balance as at the end of the

2407945408.00 230368577.09 -21293103.52 1211721109.67 4239763606.89 8068505598.13 1858192188.67 9926697786.80

period of prior year

Add: Adjustment for change in

accounting policy

Adjustment for correction of

previous error

Adjustment for business

combination under common

control

Other adjustments

2. Balance as at the beginning of

2407945408.00 230368577.09 -21293103.52 1211721109.67 4239763606.89 8068505598.13 1858192188.67 9926697786.80

the Reporting Period

3. Increase/ decrease in the

-316704.47 -25695477.77 -26012182.24 34565695.53 8553513.29

period (“-” for decrease)

3.1 Total comprehensive

-316704.47 94701792.63 94385088.16 -20982635.17 73402452.99

income

3.2 Capital increased and

66061830.70 66061830.70

reduced by owners

3.2.1 Ordinary shares increased

86836439.00 86836439.00

by owners

3.2.2 Capital increased by

holders of other equity

instruments

3.2.3 Share-based payments

included in owners’ equity

3.2.4 Other -20774608.30 -20774608.30

3.3 Profit distribution -120397270.40 -120397270.40 -10513500.00 -130910770.40

3.3.1 Appropriation to

surplus reserves

3.3.2 Appropriation to

general reserve

3.3.3 Appropriation to -120397270.40 -120397270.40 -10513500.00 -130910770.40

owners (or shareholders)

3.3.4 Other

3.4 Transfers within owners’

equity

3.4.1 Increase in capital (or

share capital) from capital

reserves

3.4.2 Increase in capital (or

share capital) from surplus

reserves

3.4.3 Loss offset by surplus

reserves

3.4.4 Changes in defined

benefit schemes transferred to

retained earnings

3.4.5 Other comprehensive

income transferred to retained

earnings

3.4.6 Other

3.5 Specific reserve

3.5.1 Increase in the period

3.5.2 Used in the period

3.6 Other

4. Balance as at the end of the

2407945408.00 230368577.09 -21609807.99 1211721109.67 4214068129.12 8042493415.89 1892757884.20 9935251300.09

Reporting Period

8. Statements of Changes in Owners’ Equity of the Company as the Parent

H1 2021

Unit: RMB

H1 2021

Other equity instruments Less: Other

Item Capital Specific Retained Total owners’

Share capital Preferred Perpetu Treasury comprehensi Surplus reserves Other

Other reserves reserve earnings equity

shares al bonds stock ve income

1. Balance as at the end of the period of prior year 2407945408.00 112570352.72 -2682217.31 1227564785.19 2352385005.09 6097783333.69

Add: Adjustment for change in accounting policy

Adjustment for correction of previous error

Other adjustments 1017.42 1017.42

2. Balance as at the beginning of the Reporting

2407945408.00 112570352.72 -2682217.31 1227564785.19 2352386022.51 6097784351.11

Period

3. Increase/ decrease in the period (“-” for decrease) -2671625.35 1182217.31 -411975210.57 -413464618.61

3.1 Total comprehensive income 1182217.31 -171180669.77 -169998452.46

3.2 Capital increased and reduced by owners -2671625.35 -2671625.35

3.2.1 Ordinary shares increased by owners

3.2.2 Capital increased by holders of other equity

instruments

3.2.3 Share-based payments included in owners’

equity

3.2.4 Other -2671625.35 -2671625.35

3.3 Profit distribution -240794540.80 -240794540.80

3.3.1 Appropriation to surplus reserves

3.3.2 Appropriation to owners (or shareholders) -240794540.80 -240794540.80

3.3.3 Other

3.4 Transfers within owners’ equity

3.4.1 Increase in capital (or share capital) from

capital reserves

3.4.2 Increase in capital (or share capital) from

surplus reserves

3.4.3 Loss offset by surplus reserves

3.4.4 Changes in defined benefit schemes

transferred to retained earnings

3.4.5 Other comprehensive income transferred

to retained earnings

3.4.6 Other

3.5 Specific reserve

3.5.1 Increase in the period

3.5.2 Used in the period

3.6 Other

4. Balance as at the end of the Reporting Period 2407945408.00 109898727.37 -1500000.00 1227564785.19 1940410811.94 5684319732.50

H1 2020

Unit: RMB

H1 2020

Other equity instruments Less: Other

Item Capital Specific Retained Total owners’

Share capital Preferred Perpetu Treasury comprehensi Surplus reserves Other

Other reserves reserve earnings equity

shares al bonds stock ve income

1. Balance as at the end of the period of prior year 2407945408.00 114018066.79 -2682217.31 1227564785.19 2245698875.22 5992544917.89

Add: Adjustment for change in accounting policy

Adjustment for correction of previous error

Other adjustments 20256240.41 20256240.41

2. Balance as at the beginning of the Reporting

2407945408.00 114018066.79 -2682217.31 1227564785.19 2265955115.63 6012801158.30

Period

3. Increase/ decrease in the period (“-” for decrease) 174053916.78 174053916.78

3.1 Total comprehensive income 294451187.18 294451187.18

3.2 Capital increased and reduced by owners

3.2.1 Ordinary shares increased by owners

3.2.2 Capital increased by holders of other equity

instruments

3.2.3 Share-based payments included in owners’

equity

3.2.4 Other

3.3 Profit distribution -120397270.40 -120397270.40

3.3.1 Appropriation to surplus reserves

3.3.2 Appropriation to owners (or shareholders) -120397270.40 -120397270.40

3.3.3 Other

3.4 Transfers within owners’ equity

3.4.1 Increase in capital (or share capital) from

capital reserves

3.4.2 Increase in capital (or share capital) from

surplus reserves

3.4.3 Loss offset by surplus reserves

3.4.4 Changes in defined benefit schemes

transferred to retained earnings

3.4.5 Other comprehensive income transferred

to retained earnings

3.4.6 Other

3.5 Specific reserve

3.5.1 Increase in the period

3.5.2 Used in the period

3.6 Other

4. Balance as at the end of the Reporting Period 2407945408.00 114018066.79 -2682217.31 1227564785.19 2440009032.41 6186855075.08

Konka Group Co. Ltd.Notes to Financial Statements for H1 2021

(All amounts are expressed unless otherwise stated in Renminbi (RMB).)

I. Company Profile

1. Establishment

Konka Group Co. Ltd. (hereinafter referred to as “Company” or “the Company”) is a joint-stock

limited company reorganized from the former Shenzhen Konka Electronic Co. Ltd. in August

1991 upon approval of the People’s Government of Shenzhen Municipality and has its ordinary

shares (A-share and B-share) listed on Shenzhen Stock Exchange with prior consent from the

People’s Bank of China Shenzhen Special Economic Zone Branch. On 29 August 1995 the

Company was renamed to “Konka Group Co. Ltd.” (Credibility code: 914403006188155783)

with its main business electronic industry. And now the headquarters locates in No. 28 of No. 12

of Keji South Rd. Science & Technology Park Yuehai Street Nanshan District Shenzhen

Guangdong Province.2. Share capital

After the distribution of bonus shares allotments increased share capital and new shares issued

over the years as of 30 June 2021 the Company has issued a total of 2407945408.00 shares

(denomination of RMB1 per share) with a registered capital of RMB2407945408.00.3. The nature of the company's business and main operating activities

The Company and its subsidiaries are mainly engaged in the production and sales of colour TVs

white goods PCB etc.; Industry trade business environmental protection semi-conductor etc.4. The financial statements contained herein have been approved for issue by the Board of

Directors of the Company on 26 August 2021.II. Consolidation scope

1. The Company has a total of 150 subsidiaries included in the consolidation scope including

Electronics Technology Anhui Konka Dongguan Konka. The consolidation scope of the

Company for the Reporting Period increased by 13 households including Nantong Hongdin due

to incorporation and decreased by 6 households including Shenzhen Kangxin Property due to

losing control or cancellation compared to the previous year.For details please refer to Note 7 “Changes in the consolidation scope” and Note 8 "Equity in

Other Entities".2. A check list of corporate names and their abbreviations mentioned in this Report

No. Corporate name Abbreviation

1 Anhui Konka Zhilian E-Commerce Co. Ltd. Anhui Zhilian

2 Haimen Konka Smart Technology Co. Ltd. Haimen Konka

3 Chengdu Konka Smart Technology Co. Ltd. Chengdu Konka Smart

4 Chengdu Konka Electronic Co. Ltd. Chengdu Konka Electronic

5 Nantong Hongdin Smart Technology Co. Ltd. Nantong Hongdin

6 Shenzhen Youzhihui Technology Co. Ltd. Youzhihui

7 Shenzhen Xiaojia Technology Co. Ltd. Xiaojia Technology

8 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun Smart

9 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang Kangshun Renewable

10 Nanjing Konka Electronics Co. Ltd. Nanjing Konka

No. Corporate name Abbreviation

11 Chuzhou Konka Precision Intelligent Manufacturing Technology Co.Chuzhou Konka

Ltd.12 Xi'an Huasheng Jiacheng Real Estate Co. Ltd. Xi'an Huasheng

13 GuangDong XingDa HongYe Electronic Co. Ltd. XingDa HongYe

14 Shanghai Xinfeng Zhuoqun PCB Co. Ltd. Shanghai Xinfeng

15 Shenzhen Konka Circuit Co. Ltd. Konka Circuit

16 Suining Konka Soft Electronic Technology Co. Ltd. Konka Soft Electronic

17 Suining Konka Hongye Electronics Co. Ltd. Konka Hongye Electronics

18 Boluo Konka Precision Technology Co. Ltd. Boluo Precision

19 Boluo Konka PCB Co. Ltd. Boluo Konka

20 Xiamen Dalong Trading Co. Ltd. Xiamen Dalong

21 Shenzhen Konka Electronics Technology Co. Ltd. Electronics Technology

22 Anhui Konka Tongchuang Electrical Appliances Co. Ltd. Anhui Tongchuang

23 Jiangsu Konka Smart Electrical Appliances Co. Ltd. Jiangsu Konka Smart

24 Anhui Konka Electrical Appliance Technology Co. Ltd. Anhui Electrical Appliance

25 Henan Frestec Refrigeration Appliance Co. Ltd. Frestec Refrigeration

26 Henan Frestec Electrical Appliances Co. Ltd. Frestec Electrical Appliances

27 Henan Frestec Household Appliances Co. Ltd. Frestec Household Appliances

28 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home

29 Shenzhen Konka Investment Holdings Co. Ltd. Konka Investment

30 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka Technology Park

31 Shenzhen Konka Capital Equity Investment Management Co. Ltd. Konka Capital

32 Shenzhen Konka Industrial Park Development Co. Ltd. Industrial Park Development

33 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong

34 Shenzhen Kangquan Enterprise Management Consulting Co. Ltd. Kangquan Enterprise

35 Shenzhen Konka Suyuan Investment Industrial Co. Ltd. Konka Suyuan

36 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial

37 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology

38 Konka Factoring (Shenzhen) Co. Ltd. Konka Factoring

39 Beijing Konka Electronic Co. Ltd. Beijing Konka Electronic

40 Konka Financial Leasing (Tianjin) Co. Ltd. Konka Leasing

41 Suining Konka Industrial Park Development Co. Ltd. Suining Konka Industrial Park

42 Suining Electronic Technological

Suining Konka Electronic Technological Innovation Co. Ltd.Innovation

43 Shanghai Konka Industrial Co. Ltd. Shanghai Konka

44 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin

45 Shenzhen Konka Mobile Interconnection Technology Co. Ltd. Mobile Interconnection

46 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka

No. Corporate name Abbreviation

47 Yibin Konka Smart Technology Co. Ltd. Yibin Smart

48 Shenzhen KONSEMI Co. Ltd. Shenzhen KONSEMI

49 Chongqing Konka Technology Development Co. Ltd. Chongqing Konka

50 Hefei KONSEMI Storage Technology Co. Ltd. Hefei KONSEMI

51 Hefei Yihe Electronic Co. Ltd. Yihe Electronic

52 Shenzhen Konka Huiying Technology Co. Ltd. Shenzhen Huiying Technology

53 Chongqing Konka Huiying Technology Co. Ltd. Chongqing Huiying Technology

54 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory (Shenzhen)

55 Kowin Memory Technology (Hong Kong) Co. Limited Kowin Memory (Hong Kong)

56 Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd. Konka Xinyun Semiconductor

57 Konka Industrial and Trade Technology (Shenzhen) Co. Ltd. Industrial and Trade Technology

58 Shenzhen Nianhua Enterprise Management Co. Ltd. Shenzhen Nianhua

59 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Huazhong

60 Shenzhen Wankaida Science and Technology Co. Ltd. Wankaida

61 Shenzhen Chuangzhi Electrical

Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.Appliances

62 Suining Jiarun Property Co. Ltd. Suining Jiarun Property

63 Shenzhen Konka Electrical Appliances Co. Ltd. Konka Electrical Appliances

64 Shenzhen E2info Network Technology Co. Ltd. E2info

65 E2info (Hainan) Network Technology Co. Ltd. E2info (Hainan)

66 Anhui Konka Electronic Co. Ltd. Anhui Konka

67 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade

68 Shenzhen Konka Telecommunications Technology Co. Ltd. Telecommunication Technology

69 Konka Mobility Co. Limited Konka Mobility

70 Dongguan Konka Packing Materials Co. Ltd. Dongguan Packing

71 Dongguan Konka Electronic Co. Ltd. Dongguan Konka

72 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart

73 Chongqing Konka Optoelectronic Technology Research Institute Co.Chongqing Optoelectronic

Ltd. Technology Research Institute

74 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun

75 Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd. Yibin Kangrun Medical

76 Yibin Kangrun Environmental Protection Power Generation Co. Ltd. Yibin Kangrun Environmental

Protection

77 Ningbo Khr Electric Appliance Co. Ltd. Ningbo Khr Electric Appliance

78 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka

79 Jiangxi High Transparent Substrate Material Technology Co. Ltd.Jiangxi High Transparent Substrate(formerly known as “Jiangxi Golden Phoenix Nano-Grystallized Glass(formerly known asCo. Ltd.”) “Nano-Grystallized Glass”)80 Jiangsu Konka Special Material Technology Co. Ltd. Jiangsu Konka Special Material

No. Corporate name Abbreviation

81 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystalline

82 Konka Huanjia Environmental Technology Co. Ltd. Konka Huanjia

83 Konka Huanjia (Henan) Environmental Technology Co. Ltd. Konka Huanjia (Henan)

84 Shandong Econ Technology Co. Ltd. Econ Technology

85 Econ Environmental Engineering Co. Ltd. Econ Environmental Engineering

86 Beijing Econ Runfeng Technology Co. Ltd. Beijing Econ

87 Binzhou Econ Zhongke Environmental Technology Co. Ltd. Binzhou Econ Zhongke

88 Dayi Kangrun Water Co. Ltd. Dayi Kangrun Water

89 Tingyuan Environmental Technology (Shanghai) Co. Ltd. Tingyuan Environmental

90 Shanghai Jiyi Environmental Technology Co. Ltd. Shanghai Jiyi

91 Kangrunhong Environmental Technology (Yantai) Co. Ltd. Kangrunhong Environmental

92 Donggang Kangrun Environmental Management Co. Ltd. Donggang Kangrun

93 Gaoping Kangrun Environmental Protection &Water Co. Ltd. Gaoping Kangrun

94 Xi’an Gaoling Kangrun Environmental Engineering Co. Ltd. Xi’an Kangrun

95 Changning Kangrun Water Co. Ltd. Changning Kangrun

96 Lushan Kangrun Environmental Management Co. Ltd. Lushan Kangrun Environmental

97 Tongchuan Kangrun Honghui Environmental Management Co. Ltd. Tongchuan Kangrun Honghui

98 Rushan Econ Water Environment Management Co. Ltd. Rushan Econ

99 Mengcheng Kangrun Anjian Water Co. Ltd. Mengcheng Kangrun

100 Chongzhou Kangrun Environment Co. Ltd. Chongzhou Kangrun

101 Suining Pengxi Kangrun Environmental Management Co. Ltd. Suining Pengxi Kangrun

102 Funan Kangrun Water Co. Ltd. Funan Kangrun Water

103 Subei Mongol Autonomous County Kangrun Water Co. Ltd. Subei Kangrun Water

104 Linfen Kangrun Jinze Water Supply Co. Ltd. Linfen Kangrun

105 Wuhan Runyuan Wastewater Treatment Co. Ltd. Wuhan Runyuan Wastewater

106 Binzhou Weiyijie Environmental Technology Co. Ltd. Binzhou Weiyijie

107 Binzhou Beihai Jingmai Industrial Development Co. Ltd. Binzhou Beihai Jingmai

108 Yantai Chunzhiran Environmental Technology Co. Ltd. Chunzhiran

109 Laizhou Lairun Holding Co. Ltd. Lairun Holding

110 Laizhou Binhai Wastewater Treatment Co. Ltd. Binhai Wastewater

111 Laizhou Lairun Environmental Protection Co. Ltd. Lairun Environmental Protection

112 Laizhou Lairun Wastewater Treatment Co. Ltd. Lairun Wastewater

113 Weifang Sihai Kangrun Investment Operation Co. Ltd. Weifang Sihai Kangrun

114 Xixian Kangrun Xijian Water Environment Development Co. Ltd. Xixian Kangrun

115 Ankang Kangrun Xinheng Water Environment Co. Ltd. Ankang Kangrun

116 Bokang Renewable Resources (Yantai) Co. Ltd. Bokang Renewable

117 Kangruncheng Environmental Technology (Yantai) Co. Ltd. Kangruncheng Environmental

Technology

No. Corporate name Abbreviation

118 Shaanxi Konka Intelligent Appliance Co. Ltd. Shaanxi Konka Intelligent

119 Shenzhen Konka Pengrun Technology & Industry Co. Ltd. Pengrun Technology

120 Jiaxin Technology Co. Ltd. Jiaxin Technology

121 Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd. Konka Ronghe

122 Chongqing Kangxingrui Environmental Technology Co. Ltd. Chongqing Kangxingrui

123 Chongqing Kangxingrui Scraped Automobile Recycling Co. Ltd. Chongqing Kangxingrui

Automobile Recycling

124 Chongqing Kanglei Optoelectronic Technology Co. Ltd. Chongqing Kanglei Optoelectronic

125 Henan Kangxin Property Co. Ltd. Henan Kangxin Property

126 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune

127 Jiali International (Hong Kong) Limited Jiali International

128 Sichuan Kangjiatong Technology Co. Ltd. Kangjiatong

129 Kanghong (Yantai) Environmental Technology Co. Ltd. Kanghong (Yantai) Environmental

130 Jiangkang (Shanghai) Technology Co. Ltd. Jiangkang (Shanghai) Technology

131 Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd. Konka Intelligent Manufacturing

132 Yantai Laikang Industrial Development Co. Ltd. Yantai Laikang

133 Hainan Konka Material Technology Co. Ltd. Konka Material

134 Konka Ventures Development (Shenzhen) Co. Ltd. Konka Ventures

135 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator

136 Yantai Konka Healthcare Enterprise Service Co. Ltd. Yantai Konka

137 Chengdu Anren Konka Cultural and Creative Incubator Management

Chengdu Anren

Co. Ltd.138 Guiyang Konka Enterprise Service Co. Ltd. Konka Enterprise Service

139 Nanjing Chuanghui Smart Technology Co. Ltd. Chuanghui Smart

140 Shenzhen Konka Eco-Development Investment Co. Ltd. Konka Eco-Development

141 Shenzhen Kangxin Property Co. Ltd. Shenzhen Kangxin Property

142 Henan Kanghan Property Co. Ltd. Henan Kanghan Property

143 Konka (Europe) Co. Ltd. Konka Europe

144 Hong Kong Konka Limited Hong Kong Konka

145 Kangxin Semiconductor (Yantai) Co. Ltd. Kangxin Semiconductor

146 Hongdin International Trading Limited Hongdin Trading

147 Konka North America LLC Konka North America

148 Kanghao Technology Co. Ltd. Kanghao Technology

149 Hongdin Invest Development Limited Hongdin Invest

150 Chain Kingdom Memory Technologies Co. Limited Chain Kingdom Memory

Technologies

151 Chain Kingdom Memory Technologies (Shenzhen) Co. Limited Chain Kingdom Memory

Technologies (Shenzhen)

152 Hefei Chain Kingdom Memory Technologies Co. Limited Hefei Chain Kingdom Memory

Technologies

No. Corporate name Abbreviation

153 Konka Smartech Limited Konka Smartech

154 Hongjet (Hong Kong) Company Limited Hongjet

155 Yantai Kangyun Industrial Development Co. Ltd. Yantai Kangyun

156 Yantai Kangyun Property Development Co. Ltd. Yantai Kangyun Property

III. Basis for the Preparation of Financial Statements

1. Basic for the preparation

With the going-concern assumption as the basis and based on transactions and other events that

actually occurred the Company prepared financial statements in accordance with The Accounting

Standards for Business Enterprises issued by the Ministry of Finance and other regulations aswell as the accounting policies and estimations stipulated in the Note IV “Significant AccountingPolicies and Estimations”.2. Going-concern

The Company does not undergo any affair or situation that causes major doubt about the

continuous operation capacity within 12 months from the end of the Reporting Period.IV. Important Accounting Policies and Estimations

The specific accounting policies and accounting estimates formulated by the company based on

the actual production and operation characteristics include the recognition and measurement of

bad debt provision for receivables the measurement of issued inventories the classification of

fixed assets and depreciation methods amortization of intangible assets revenue recognition and

measurement etc.1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company are in compliance with in compliance with the

Accounting Standards for Business Enterprises which factually and completely present the

Company’s financial positions business results and cash flows and other relevant information.2. Fiscal Period

The Company’s fiscal year starts on January 1 and ends on December 31 of every year according

to the Gregorian calendar.3. Operating Cycle

An operating cycle for the Company is 12 months which is also the classification criterion for the

liquidity of its assets and liabilities.4. Recording Currency

The Company adopted Renminbi as the bookkeeping base currency.5. Accounting Treatment Methods for Business Combinations under the Same Control or not

under the Same Control

As the combining party the assets and liabilities obtained by the Company in a business

combination under the same control shall be measured on the basis of their carrying value in the

final controlling party on the combining date. As for the balance between the carrying value of the

net assets obtained and the carrying value of the consideration paid by it the capital reserve shall

be adjusted. If the capital reserve is not sufficient to be offset the retained earnings shall be

adjusted.The identifiable assets liabilities and contingent liabilities of the acquiree acquired in the

business combination under different control shall be measured at fair value on the acquisition

date. The merger cost is the sum of the fair value of cash or non-cash assets liabilities issued or

assumed equity securities issued etc. paid by the Company on the purchase date to gain control

over the purchased party and all directly related expenses incurred in the business combination

(The merge cost of business combination realized step by step through multiple transactions is the

sum of every single transaction’s cost). The balance that the combined cost greater than the fair

value share of the identifiable net assets of the purchased party obtained in the combination shall

be recognized as goodwill; When the merger cost is less than the fair value share of the

identifiable net assets of the acquiree acquired in the merger the fair value of all identifiable

assets liabilities and contingent liabilities acquired in the merger and non-cash assets of the

merger consideration or equity securities issued etc. shall be reviewed first. After review if the

merger cost is still less than the fair value share of the identifiable net assets of the acquiree

acquired in the merger the difference shall be included in the non-operating income of the merger

period.6. Methods for Preparing Consolidated Financial Statements

The scope of consolidation includes the Company and its all subsidiaries.The financial statements of subsidiaries are adjusted in accordance with the accounting policies

and accounting period of the Group during the preparation of the consolidated financial

statements where the accounting policies and the accounting periods are inconsistent between the

Group and subsidiaries.All significant internal transactions current balances and unrealized profits within the scope of

consolidation shall be offset when preparing the consolidated statement. The shares of the

subsidiary's owner's equity that do not belong to the parent company and the shares of minority

shareholders' equity in current net profit and loss other comprehensive income and total

comprehensive income shall be respectively listed in the consolidated financial statement

"Minority shareholders' equity minority shareholders' profit and loss other comprehensive

income that belongs to minority shareholders and total comprehensive income that belongs to

minority shareholders".For subsidiaries acquired through merger of enterprises under the same control their operating

results and cash flows are included in the consolidated financial statements from the beginning of

the current merger period. When preparing the comparative consolidated financial statements the

relevant items in the financial statements of the previous year shall be adjusted as if the

consolidated reporting entity had existed since the final controlling party began to control it.The treatment method of supplementary disclosure in consolidated financial statement for the

Reporting Period when the controlling right is acquired if the equity of the invested organization

under the same control is successively obtained through several transactions and eventually the

enterprise merger is conducted. For example: At the occasion of the equity of the investee under

the same control is acquired step by step through multiple transactions and finally form the

business combination when preparing the consolidated statement it shall be deemed as the

adjustment is made in the current state when the final controlling party starts to control. And

when compiling the comparative report the assets and liabilities of the merged party shall be

merged into the comparative statement of the consolidated financial statements of the

consolidated Company without any earlier than the time when the Company and the merged party

are under the control of the ultimate controlling party and the combined net increased assets shall

be adjusted to the relevant items under owners' equity in the comparative statements. In order to

avoid the re-calculation of the net assets value of the merged party the long-term equity

investment held by the Company before the merger the confirmed relevant profit and loss on the

same party with the Company and the merged party on the date of acquisition of the original

equity from the final control date to the merger date and changes of other comprehensive income

and other net assets shall offset the beginning retained earnings and current profits and losses of

the comparative statement period respectively.For subsidiaries acquired through business combination under the different control the operating

results and cash flow shall be included in the consolidated financial statements from the date

when the Company obtains the control right. When preparing the consolidated financial

statements the financial statements of the subsidiaries shall be adjusted on the basis of the fair

value of the identifiable assets liabilities and contingent liabilities determined on the acquisition

date.The treatment method of supplementary disclosure in consolidated financial statement for the

Reporting Period when the controlling right is acquired if the equity of the invested organization

not under the same control is successively obtained through several transactions and eventually

the enterprise merger is conducted. For example: At the occasion of the equity of the investee

under different control is acquired step by step through multiple transactions and eventually form

the business combination when preparing the consolidated statement the equity of the investee

held before the purchase date is re-measured according to the fair value of the equity on the

purchase date and the difference between the fair value and its book value is included in the

current investment income. The equity of the acquiree held before the relevant purchase date

involves other comprehensive income under the equity method and other changes in owner's

equity other than net profit and loss other comprehensive income and profit distribution which

are converted into investment profit and loss in the current period of the purchase date except for

other comprehensive income arising from the remeasurement of defined benefit plans's net

liabilities or changes in net assets by the investee.The Company partially disposes of long-term equity investments in subsidiaries without losing

control when preparing the consolidated financial statements the difference between the disposal

price and the share of net assets that the subsidiaries have continuously calculated since the date

of purchase or the date of consolidation is corresponding to the disposal of long-term equity

investments. The capital premium or equity premium is adjusted. If the capital reserve is

insufficient to offset the retained earnings are adjusted.If the Company loses control over the investee due to the disposal of some equity investments and

other reasons the remaining equity shall be re-measured at its fair value on the date of loss of

control when preparing the consolidated financial statements. The difference between the sum of

the consideration obtained from the disposal of equity and the fair value of the remaining equity

minus the share of the net assets of the original subsidiary calculated on the basis of the original

shareholding ratio and continuously calculated from the date of purchase or merger is included in

the investment profit and loss of the current period when the control right is lost and goodwill is

offset. Other comprehensive income related to the original subsidiary's equity investment etc.will be transferred to the current investment profit and loss when the control right is lost.If the Company disposes of the equity investment in a subsidiary company step by step through

multiple transactions until the loss of control right if the transactions of the disposal of the equity

investment in a subsidiary company until the loss of control right belong to a package transaction

the transactions shall be treated as transactions of the disposal of the subsidiary company and the

loss of control right for accounting. However the difference between the disposal price and the

share of the subsidiary's net assets corresponding to the disposal investment before the loss of

control right is recognized as other comprehensive income in the consolidated financial

statements and is transferred to the investment profit and loss of the current period when the

control right is lost.7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations

The Company classifies joint arrangements into joint operations and joint ventures. For a joint

operation the Company 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 Company’s stake in the joint operation; recognizes relevant income and expense

according to the Company’s stake in the joint operation. When the Company purchases or sells

the assets not constituting business with the joint operation the Company only recognized the

share of the other joint operators in the gains and losses arising from the transaction.8. Cash and Cash Equivalents

In the Company’s understanding the cash in the cash flow statement includes cash on hand and

deposits that can be used for cover the cash equivalents in the cash flow statement include high

circulating investments held within three months which are easily convertible into known amount

of cash and whose risks in change of value are minimal.9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements

(1) Foreign currency transaction

As for foreign currency transaction the Company converted the foreign currency amount into

RMB amount at the exchange rate at the beginning of the month of transaction occurrence date

(normally referred to as the central parity rate of foreign exchange rate on the same day published

by the People’s Bank of China the same below). On the balance sheet date the monetary items in

foreign currency were converted into RMB at the spot exchange rate on balance sheet date.Except the exchange difference arising from special foreign-currency borrowing for the purpose

of construction or production of assets meeting capitalization conditions treated in the principle of

capitalization the conversion difference was directly included in the current profits and losses.

(2) Translation of foreign currency financial statement

The asset and liability items in foreign currency balance sheet were converted at the spot

exchange rate on balance sheet date; except for “undistributed profit” owner’s equity items were

converted at the sport exchange rate at the time of business occurrence; income and expenditure

items in income statement were converted at the average exchange rate for the period (monthly

average exchange rate) of the transaction occurrence date. The conversion difference of foreign

currency statements arising from the aforementioned conversion was presented in other

comprehensive income item. The foreign currency cash flow was converted at the average

exchange rate for the period (monthly average exchange rate) of the cash flow occurrence date.The amount of exchange rate change influence on cash was independently presented in cash flow

statement.10. Financial Assets and Financial Liabilities

The Company recognizes a financial asset or liability when it becomes a party of the relevant

financial instrument contract.(1) Financial assets

1) Classification recognition and measurement of financial assets

The Company classifies the financial assets into financial assets measured at amortized cost

financial assets measured by the fair value and the changes recorded in other comprehensive

income and financial assets at fair value through profit or loss based on the business model for

financial assets management and characteristics of contractual cash flow of financial assets

The Company classified the financial assets meeting the following conditions at the same time as

financial assets at amortized cost: ①The business mode of the Company to manage the financial

assets targets at collecting the contractual cash flow. ②The contract of the financial assets

stipulates that the cash flow generated in the specific date is the payment of the interest based on

the principal and outstanding principal amount. These financial assets initially measured at fair

value and relevant transaction cost shall be included into the initial recognized amount and

subsequently measured at amortized cost. Except for those designated to be hedge items the

difference between the initial recognized amount and the amount due shall be amortized at actual

interest rate and their amortization impairment and exchange gain and loss as well as gains or

losses arising from derecognition shall be recorded into the current profit or loss.The Company classified the financial assets meeting the following conditions at the same time as

financial assets at fair value through other comprehensive income: ①The Business mode for

managing financial assets of the Company takes contract cash flow collected as target and selling

as target. ②The contract of the financial assets stipulates that the cash flow generated in the

specific date is the payment of the interest based on the principal and outstanding principal

amount. These financial assets initially measured at fair value and relevant transaction cost shall

be included into the initial recognized amount. Except for those designated as hedged items as

for these financial assets except for gains or losses on credit impairment exchange gain and loss

and interest of financial assets measured at actual interest rate other gains or losses generated

shall be recorded into other comprehensive income. When derecognized the accumulated gains

and losses originally recorded into other comprehensive income shall be transferred out into the

current profit or loss.The Company 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: ① For the financial

asset with credit impairment that has been purchased or originated from the initial recognition

the interest income is calculated and determined according to the amortized cost of the financial

asset and the actual interest rate adjusted by credit.② 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 Company designates non-transactional investment in equity instruments as financial assets at

fair value through other comprehensive income. Those designated non-transactional investment in

equity instruments by the Company is initially measured at fair value and relevant transaction

cost shall be recorded into the initial recognized amount. Except for dividends (excluding those

belonging to recovery of investment cost) which shall be recorded into the current profit or loss

other relevant gains and losses (including exchange gains and losses) shall be recorded into other

comprehensive income and cannot be transferred into the current profit or loss subsequently.When derecognized the accumulated gains or losses originally recorded into other

comprehensive income shall be transferred out into retained earnings. Equity instrument

investments measured at fair value through other comprehensive income included: Equity

investments to be held in the long term as planned by the Company for strategic purpose with no

control joint control or significance influence and with no active market quotation.The Company classifies financial assets not belonging to above two as financial assets at fair

value through profit or loss which shall be initially measured at fair value and relevant transaction

cost shall be directly recorded into the current profit or loss. Gains or losses arising from these

financial assets shall be recorded into the current profit or loss.The contingent consideration recognized by the Company in the business combination not under

the same control which constitutes a financial asset shall be classified as the financial asset at fair

value through profit or loss.2) Recognition and measurement of financial assets transfer

The Company derecognizes a financial asset when one of the following conditions is met:

1) the rights to receive cash flows from the asset have expired; 2) the enterprise has transferred its

rights to receive cash flows from the asset to a third party under a pass-through arrangement; or 3)

the enterprise has transferred its rights to receive cash flows from the asset and either (a) has

transferred substantially all the risks and rewards of the asset or (b) has neither transferred nor

retained substantially all the risks and rewards of the asset but has transferred control of the asset.If the overall transfer of financial assets fulfills the requirements for derecognition the difference

between the book value of the transferred financial assets and the sum of the consideration received

due to the transfer and the corresponding derecognition part of the accumulated amount of fair value

changes originally directly included in other comprehensive income (the contract terms involving the

transferred financial assets stipulate that the cash flow generated on a specific date is only the payment

of the principal and interest based on the unpaid principal amount) shall be included in the current

profits and losses.If the partial transfer of financial assets satisfies the conditions for termination confirmation the

entire book value of the transferred financial assets will be apportioned between the termination

confirmation portion and the non-termination confirmation portion according to their relative fair

values and the consideration received for the transfer And the amount corresponding to the

termination of the recognition of the cumulative amount of changes in fair value originally

included in other comprehensive income that should be apportioned to the derecognition part And

the payment of interest based on the outstanding principal amount) and the difference between

the total book value of the aforesaid financial assets allocated is included in the current profit and

loss.

(2) Financial liabilities

1) Classification recognition and measurement of financial liabilities

The Company’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 Company classifies financial liabilities except for the following items as financial

liabilities at amortized cost: ①Financial liabilities at fair value through profit or loss including

held-for-trading financial liabilities (including the derivative instruments belonging to financial

liabilities) and designated financial liabilities at fair value through profit or loss. ②Financial

liabilities arising from the transfer of financial assets not meeting the derecognition conditions or

continuous involvement in the transferred financial assets. ③Financial guarantee contract not

belonging to cases of above ① or ② and loan commitments at interest rate lower than the market

rate not belonging to the case in①.The Company treats the financial liability arising from contingent consideration recognized as the

purchase party in the business combination not under the same control at fair value and changes

thereof shall be recorded into the current profit or loss.2) Derecognition of financial liabilities

In case of current obligation of financial liabilities (or partial financial liabilities) being

terminated derecognition of such financial liabilities (or partial financial liabilities) is conducted

by the Company. If the Company (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 Company

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 Company includes the balance between its carrying value and payment

consideration into the current profit or loss.

(3) Determination of financial assets and liabilities’ fair value

The Company measured the fair value of financial assets and financial liabilities according to the

price at major market. If major market does not exist the fair value of financial assets and

financial liabilities was measured according to the price at the most advantageous market through

applying valuation technique applicable at the time and with sufficient usable data and other

information support. The inputs for fair value measurement were classified into three levels.Level 1 is the unadjusted quotation of the same assets or liabilities on active market available on

the measurement date. Level 2 is the input of relevant assets or liabilities other than that in level 1

that are observable either directly or indirectly. Level 3 is the unobservable input of relevant

assets or liabilities. The Company preferred level 1 input and applied level 3 input at last. Level 1

input was applicable for listed stock and bond held by the Company level 2 input for financing of

accounts receivable (mainly bank acceptance bill and trade acceptance bill meeting derecognition

requirements after transfer) and level 3 input for other non-current financial assets (unlisted

equity investment held by the Company) and held-for-trading financial assets (mainly financial

products held by the Company). The level attributed to the fair value measurement result was

determined according to the lowest level of the input with much significance to fair value

measurement in general.The Company measured the investment of equity instruments at fair value. However under

limited situation if the recent information for determining the fair value was insufficient or the

potential estimated amount of fair value was in wide range and the cost represented the optimal

estimation of fair value in such range such cost could represent appropriate estimation of fair

value in such range. Such equity instrument investments included: Equity investments held by the

Company measured at fair value with changes included in the current profits and losses with no

control joint control or significance influence; non-trading equity instrument investments were

designated as financial assets measured at fair value through other comprehensive income.

(4) Offsetting financial assets and financial liabilities

The Company’s financial assets and liabilities shall be separately presented in the balance sheet

and not set off each other. But when meeting the following conditions at the same time the net

amount after offset shall be presented in the balance sheet: (1) The Company has the statutory

right to set off recognized amount which is currently executable; (2) The Company plans to settle

with the net amount or realize the financial asset and pay off the financial liability simultaneously.

(5) The distinction between financial liabilities and equity instruments and related treatment

methods

The Company distinguishes the financial liabilities and equity instruments according to the

following principles: (1) If the Company 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 Company's own equity instrument it is

necessary to consider whether the Company's own equity instrument used to settle the instrument

is used as a substitute for cash or other financial assets or to enable the holder of the instrument

to enjoy the residual equity in the assets of the issuer after deducting all liabilities. If it belongs to

the former condition the instrument is the financial liability of the issuer; if it belongs to the latter

condition the instrument is the equity instrument of the issuer. In some cases a financial

instrument contract requires the Company 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 Company's own equity instruments the contract shall be classified as a

financial liability.In classifying financial instruments (or their components) in the consolidated statement the

Company has taken into account all terms and conditions reached between the Company

members and the holders of financial instruments. If the Company 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 Company 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 Company will treat them as changes

in equity and will not recognize changes in the fair value of equity instruments.11. Impairment of Financial Assets

The Company needs to confirm that the financial assets subject to the impairment loss are the

financial assets measured based on the amortized cost the debt instrument investment measured

based on the fair value with its variations included into other comprehensive incomes and the

lease outlay receivable mainly including notes receivable account receivable other receivables

investment on creditor’s rights other investments on creditor’s rights and long-term receivables

etc. Besides in respect of the contract assets and partial financial guarantee contract

corresponding impairment provisions shall be calculated and withdrawn and corresponding credit

impairment losses recognized according to various accounting policies mentioned in this part.

(1) Methods for the Recognition of Impairment Provisions

For all mentioned items above the Company shall calculate and withdraw corresponding

impairment provisions and recognize corresponding credit impairment losses according to

applicable expected credit loss measurement methods (general methods or simplified methods)

with the expected credit loss as the basis.Credit loss refers to the difference between all receivable contract cash flows and all expected

cash flows that are discounted to the present value based on the original actual interest rate -- the

present value of all cash shortfall. However for the purchased or original financial assets subject

to the credit impairment the Company shall realize the discounting based on the actual interest

rate subject to the credit adjustment.General methods applied to measure the expected credit loss can be described as: the Company

shall evaluate whether the credit risk of the financial assets (including the contract assets and

other applicable items; the same below) increases remarkably after the initial recognition on the

balance sheet day; if the credit risk increases remarkably after the initial recognition the

Company shall measure the provision for loss based on the specific expected credit loss amount

during the entire period of existence; if not the Company shall measure the provision for loss

based on the specific expected credit loss amount in the following 12 months. While evaluating

the expected credit loss the Company shall take all reasonable and well-founded information into

consideration including the forward-looking information.For the financial instrument of lower credit risk on the balance sheet day the Company shall

assume that its credit risk does not increase remarkably after the initial recognition and

corresponding provision for loss shall be measured according to the expected credit loss in the

following 12 months.

(2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial

Recognition

If any financial assets’ probability of default within the expected period of existence determined

on the balance sheet day is obviously higher than that within the expected period of existence

determined during the initial recognition it shall indicate the remarkable increase of the financial

assets’ credit risk. Unless it is under special circumstances the Company shall adopt various

variations in the default risk in the following 12 months as the reasonable basis for estimating

corresponding variations in the default risk within the entire period of existence and determining

whether the credit risk increases remarkably after the initial recognition.

(3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding

Combination

For the financial assets with remarkably different credit risk the Company shall separately

evaluate its credit risk including the receivables from related parties receivables involved in any

dispute with the other party or any lawsuit and arbitration and receivables with obvious evidence

showing that the debtor cannot fulfill the due payment obligation etc.Except for the financial assets whose credit risk shall be separately evaluated the Company shall

divide these financial assets into different combinations based on the specific risk features on

which basis corresponding credit risks can be evaluated.

(4) Accounting Treatment Methods Applied to the Impairment of Financial Assets

At the end of the period the Company shall calculate the expected credit losses of various

financial assets. If the expected credit loss is higher than the carrying amount of its current

impairment provision the difference shall be recognized as the impairment loss; if lower the

difference shall be recognized as the gain from the impairment.12. Notes Receivable

For notes receivable the Company shall measure the provision for loss based on the specific

expected credit loss during the entire period of existence. According to the credit risk

characteristics thereof except those with separate evaluation of credit risk notes receivable can

be divided into different combinations:

Item Basis

Bank Acceptance The Accepter shall be the bank with high credit level and low risks

Trade Acceptance Classified by credit risk of acceptors (the same as accounts receivable)

13. Accounts Receivable

For account receivable and contract assets excluding significant financing composition the

Company 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 Company shall always measure the provision for loss according to the

specific expected credit loss amount within the period of existence.Except the account receivable and contract assets whose credit risks shall be separately evaluated

the Company shall divide them into different combinations based on the specific credit risks:

Item Basis

Aging Combination This portfolio is accounts receivable with aging as the credit risk feature.Project Funds Combination This portfolio is the project-related receivables.Related party combination The accounts receivable within the scope of consolidation

14. Accounts Receivable Financing

The Company’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 Company measures the loss reserves on other receivables in accordance with the following

circumstances: a) For financial assets whose credit risk has not significantly increased since the

initial recognition the Company measures the loss reserves at the amount of expected credit

losses for the next 12 months; b) For financial assets whose credit risk has increased significantly

since the initial recognition the Company measures the loss reserves at an amount equal to the

expected credit losses for the entire period of the financial instrument; c) For financial assets

purchased or originated from credit impairment the Company measures the loss reserves at an

amount equal to the expected credit losses over the entire period of the financial instrument.Except other receivables whose credit risks shall be separately evaluated the Company shall

divide them into different combinations based on the specific credit risk features:

Item Basis

Aging Combination This portfolio is accounts receivable with aging as the credit risk feature.This combination shall regard other receivables of extremely low risk

Low Risk Combination (including the revolving fund the cash deposit and the guarantee deposit) as

the credit risk feature.Related party combination Other receivables within the scope of consolidation.16. Long-term Receivables

By determining whether the credit risk of long-term account receivables increases remarkably

after the initial recognition the Company 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 Company 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 credit

Combination risk characteristics

Regarding the long-term receivables related to the PPP Project as the credit risk

Franchise Combination

characteristics

17. Inventories

The Company's inventories mainly include raw materials products in process semi-finished

products and entrusted processing materials.The perpetual inventory method is used for inventories. Inventories are priced at the actual cost at

the time of acquisition; the actual cost of inventories is determined by the weighted average

method when inventories are claimed or issued. Low-value consumables and packaging are

amortized through the one-off charge-off method.The net realizable value of inventories of goods that are used directly for sale such as inventory

goods products in process and materials for sale is determined by the estimated selling price of

the inventory minus estimated sale expenses and related taxes; the net realizable value of

inventories of materials held for production is determined by the estimated selling price of the

finished goods produced minus the estimated costs of completion estimated sale expenses and

related taxes.The inventories with various numbers and low unit price shall be made provisions

for depreciation reserves of inventories according to the category of inventories. For inventories

that are produced and sold in the same region with same or similar end use or purposes and hard

to be measured separately from other items it shall be made merger provisions for falling price of

inventories.The net realizable value refers in the ordinary course of business to the account after deducting

the estimated cost of completion estimated sale expense and relevant taxes from the estimated

sale price of inventories. The net realizable value of inventories shall be fixed on the basis of

valid evidence as well as under consideration of purpose of inventories and the effect of events

after balance-sheet-date.After withdrawing the depreciation reserves for inventories if the factors which cause any

write-down of the inventories have disappeared causing the net realizable value of inventories is

higher than its carrying amount; the amount of write-down shall be reversed from the original

amount of depreciation reserve for inventories. The reversed amount shall be included in the

profits and losses of the current period.18. Contract Assets

(1) Confirmation methods and standards of contract assets

Contract assets refer to the right of the company to receive consideration after transferring goods

to customers and this right depends on factors other than the passage of time. If the company

sells two clearly distinguishable products to customers it has the right to receive payment

because one of the products has been delivered but the payment is also dependent on the delivery

of the other product the company has the right to receive payment as a contract assets.

(2) Determination method and accounting treatment method of expected credit loss of contract

assets

The method of determining the expected credit loss of contract assets refer to the description of

11. Financial Asset Impairment 12. Notes Receivable 13. Accounts Receivable.The company calculates the expected credit loss of contract assets on the balance sheet date. If the

expected credit loss is greater than the book value of the current contract asset impairment

provision the company will recognize the difference as an impairment loss and debit the "asset

impairment loss". Credited "Contract asset impairment provision". On the contrary the company

recognizes the difference as an impairment gain and keeps the opposite accounting records.If the company actually incurs credit losses and determines that the relevant contract assets

cannot be recovered and the written-off is approved the "contract asset impairment reserve" is

debited and the "contracted asset" is credited based on the approved write-off amount. If the

written-off amount is greater than the provision for loss that has been withdrawn the "asset

impairment loss" is debited based on the difference.19. Contract Costs

(1) The method of determining the amount of assets related to contract costs

The company’s assets related to contract costs include contract performance costs and contract

acquisition costs.The contract performance cost that is the cost incurred by the company for the performance of

the contract does not fall within the scope of other accounting standards and meets the following

conditions at the same time as the contract performance cost is recognized as an asset: the cost

and a current or expected contract Directly related including direct labor direct materials

manufacturing expenses (or similar expenses) clearly the cost borne by the customer and other

costs incurred only due to the contract; this cost increases the company's future resources for

fulfilling its performance obligations; This cost is expected to be recovered.The contract acquisition cost that is the incremental cost incurred by the company to obtain the

contract is expected to be recovered and is recognized as an asset as the contract acquisition cost;

if the asset amortization period does not exceed one year it is included in the current profit and

loss when it occurs. Incremental cost refers to the cost (such as sales commission etc.) that the

company will not incur without obtaining the contract. The company'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 company’s assets related to contract costs are amortized on the same basis as the commodity

revenue recognition related to the asset and included in the current profit and loss.

(3) Impairment of assets related to contract costs

When the company determines the impairment loss of assets related to contract costs it first

determines the impairment loss of other assets related to the contract that are confirmed in

accordance with other relevant business accounting standards; then based on their book value

higher than the company’s transfer and If the difference between the remaining consideration that

the asset-related commodity is expected to obtain and the estimated cost incurred for the transfer

of the relevant commodity the excess shall be provided for impairment and recognized as an

asset impairment loss.If the depreciation factors of the previous period have changed and the aforementioned difference

is higher than the book value of the asset the original provision for asset impairment shall be

reversed and included in the current profit and loss but the book value of the asset after the

reversal shall not exceed Assuming no provision for impairment is made the book value of the

asset on the date of reversal.20. Long-term Equity Investments

The Company's long-term equity investments mainly consist of investments in subsidiaries

associated enterprises and joint ventures.The Company’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 Company 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 Company holds less than 20% of the voting rights of the investee it also needs to

judge whether the Company has a significant influence on the investee by taking into account the

facts and circumstances such as having representatives on the board of directors or similar

authority of the investee or participating in the process of formulating financial and operating

policies of the investee or having major transactions with the investee or sending management

personnel to the investee or providing key technical information to the investee.If control over the investee is formed it is a subsidiary of the Company. 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 company'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 Company 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 company'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 Company shall conduct

accounting treatment to treat each transaction as a single transaction to acquire control. If the

transaction is not a package deal the sum of the book value of the equity investment originally

held plus the cost of the new investment shall be the initial investment cost calculated in

accordance with the cost method. If the equity held prior to the purchase date is accounted by the

equity method the relevant other comprehensive income accounted by the original equity method

shall not be adjusted. The same basis of accounting as that used for the direct disposal of the

related assets or liabilities by the investee is used for the disposal of the investment. If the equity

held prior to the purchase date is a financial asset designated to be measured at fair value with

fluctuations included in other comprehensive income the cumulative profit or loss on the equity

previously recognized in other comprehensive income shall be transferred from other

comprehensive income to the retained earnings; if the equity is a financial asset measured at fair

value and the changes of which are included in profits and losses of the current period the equity

previously recognized as profits and losses from the changes in fair value shall not be transferred

to investment income. If the equity held prior to the purchase date is an investment for other

equity instruments the changes in fair value of the equity investment accumulated in other

comprehensive income before the purchase date shall be transferred to the retained earnings.Except for the long-term equity investments acquired through business combination hereinabove

long-term equity investments acquired by paying cash are recorded as investment cost based on

the actual purchase price paid; long-term equity investments acquired by issuing equity securities

are recorded as investment cost based on the fair value of the equity securities issued; long-term

equity investments invested by investors are recorded as investment cost based on the value

agreed in the investment contract or agreement.The Company calculates its investments in subsidiaries through the cost method and its

investments in joint ventures and associate enterprises through the equity method.For long-term equity investments calculated by the cost method for subsequent measurement the

book value of the cost of long-term equity investments shall be increased by the fair value of the

cost amount paid for the additional investment and relevant transaction costs incurred when the

additional investment is made. Cash dividends or profits declared by the investee are recognized

as investment income for the current period in accordance with the due amount.In addition to the above-mentioned long-term equity investment obtained through business

combination the long-term equity investment obtained by paying cash shall be regarded as the

investment cost according to the purchase price actually paid; the long-term equity investment

obtained by issuing equity securities shall be regarded as the investment cost according to the fair

value of issuing equity securities; the long-term equity investment invested by investors shall be

regarded as the investment cost according to the investment contract or agreement The value of

the company is regarded as the cost of investment.The company adopts the cost method for investment in subsidiaries and the equity method for

investment in joint ventures and associated enterprises.For the long-term equity investment whose subsequent measurement adopts the cost method

when the additional investment is made the book value of the long-term equity investment cost is

increased according to the fair value of the cost amount paid by the additional investment and the

relevant transaction expenses. The cash dividends or profits declared to be distributed by the

investee shall be recognized as the current investment income according to the amount that

should be enjoyed.For the long-term equity investment with equity method for subsequent measurement the book

value of the long-term equity investment will increase or decrease with the change of the owner's

equity of the invested entity. When confirming the share of the net profit and loss of the investee

the net profit and loss of the investee shall be calculated based on the fair value of the identifiable

assets of the investee at the time of obtaining the investment in accordance with the accounting

policies and accounting period of the company and offset the internal transaction profit and loss

between the joint venture and the joint venture according to the shareholding ratio Profit is

recognized after adjustment.For disposal of long-term equity investment the difference between the book value and the actual

price shall be included in the current investment income. For long-term equity investment

accounted by equity method other comprehensive income accounted by the original equity

method shall be accounted on the same basis as the investee's direct disposal of relevant assets or

liabilities when the equity method is terminated and the owner's equity shall be recognized due to

other changes in owner's equity of the investee except net profit and loss other comprehensive

income and profit distribution When the equity method is terminated all of them shall be

transferred into the current investment income.In case of loss of joint control or significant influence on the investee due to the disposal of part

of equity investment the remaining equity after disposal shall be accounted according to the

relevant provisions of the recognition and measurement standards of financial instruments and

the difference between the fair value and the book value of the remaining equity on the date of

loss of joint control or significant influence shall be included in the current profits and losses.When the equity method is terminated the other comprehensive income of the original equity

investment recognized as a result of its accounting with the equity method shall be handled on the

same basis as the investee's direct disposal of the relevant assets or liabilities and carried forward

in proportion. The owner's equity recognized as a result of the changes in the owner's equity of

the investee other than net profit and loss other comprehensive income and profit distribution

shall be carried forward in proportion Transfer to current investment income.If the control over the investee is lost due to the disposal of part of the long-term equity

investment and the residual equity after disposal can jointly control or exert significant influence

on the investee it shall be accounted according to the equity method and the difference between

the book value of the disposal equity and the disposal consideration shall be included in the

investment income and the residual equity shall be regarded as adjusted by the equity method

when it is obtained If the residual equity cannot exercise joint control or exert significant

influence on the investee the accounting treatment shall be carried out according to the relevant

provisions of the recognition and measurement standards of financial instruments. The difference

between the book value of the disposal equity and the disposal consideration shall be included in

the investment income and the difference between the fair value and the book value of the

residual equity on the day of losing control shall be included in the current profits and losses.If the transaction from step-by-step disposal of equity to loss of control right does not belong to

package transaction accounting treatment shall be carried out for each transaction separately. If it

is a "package deal" each transaction will be treated as a transaction of disposal of subsidiaries

and loss of control. However before the loss of control the difference between the disposal price

of each transaction and the book value of the long-term equity investment corresponding to the

disposed equity will be recognized as other comprehensive income and when the control is lost

it will be transferred to the current account of loss of control Period profit and loss

21. Investment Property

The term “investment property” refers to the real estate held for generating rent and/or capital

appreciation. Investment property of the Company 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 company for operating lease and the holding intention will not change in a short time

they will also be listed as investment real estate.The initial measurement of the investment property shall be made at its cost. Subsequent

expenditures incurred for an investment property is included in the cost of the investment

property when it is probable that economic benefits associated with the investment property will

flow to the Company and the cost can be reliably measured otherwise the expenditure is

recognized in profit or loss in the period in which they are incurred.The Company shall make a follow-up measurement to the investment property by employing the

cost pattern on the date of the balance sheet. An accrual depreciation or amortization shall be

made for the investment property in the light of the accounting policies of the use right of

buildings or lands.For details of impairment test method and withdrawal method of impairment provision of

investment property please refer to Note IV. 26. “Long-term assets impairment”.The company's investment real estate adopts the average life method for depreciation or

amortization. The expected service life net residual value rate and annual depreciation

(amortization) rate of all kinds of investment real estate shall refer to the depreciation policy of

buildings in fixed assets and the amortization policy of land use right in intangible assets..When

owner-occupied real estate or inventories are changed into investment property or investment

property is changed into owner-occupied real estate of which book value prior to the change shall

be the entry value after the change.When an investment property is changed to an owner-occupied real estate it would be transferred

to fixed assets or intangible assets at the date of such change. When an owner-occupied real estate

is changed to be held to earn rental or for capital appreciation the fixed asset or intangible asset is

transferred to investment property at the date of such change. If the fixed asset or intangible asset

is changed into investment property measured by adopting the cost pattern whose book value

prior to the change shall be the entry value after the change; if the fixed asset or intangible asset is

changed into investment property measured by adopting the fair value pattern whose fair value

on the date of such change shall be the entry value after the change

An investment property is derecognized on disposal or when the investment property is

permanently withdrawn from use and no future economic benefits are expected from its disposal.The amount of proceeds on sale transfer retirement or damage of an investment property less its

carrying amount and related taxes and expenses is recognized in profit or loss in the period in

which it is incurred.22. Fixed Assets

The Company’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 Company and their cost can be measured reliably. The

Company’s fixed assets include buildings and constructions machinery and equipment electronic

equipment transportation equipment and other equipment.The Company depreciates all fixed assets by straight-line method except for fully depreciated

fixed assets that continue to be used and land that is separately valued. The categorized

depreciable lives estimated net salvage rates and depreciation rates of the Company’s fixed assets

are as follows.Annual

Depreciation Expected net

No. Category Method deprecation

period (year) salvage value (%)

(%)

Housing and Straight-line

20-40 5-10.00 2.25-4.75

1 building depreciation

Machinery Straight-line

5-10 5-10.00 9.00-19.00

2 equipment depreciation

Electronic Straight-line

3-5 5-10.00 18.00-31.67

3 equipment depreciation

Transportation Straight-line

3-5 5-10.00 18.00-31.67

4 vehicle depreciation

Straight-line

Other equipment 5 5-10.00 18.00-19.00

5 depreciation

The estimated useful life estimated net salvage value and depreciation method of fixed assets are

reviewed at the end of each year. Accounting estimation methods are used when changes are

required.23. Construction in Progress

On the date when the construction in progress reaches its intended useable state fixed assets are

carried forward at the estimated value based on the project budget cost or actual cost of the

project etc. Depreciation starts from the following month and the difference in the original value

of fixed assets is adjusted after the completion of the final accounting procedures.24. Borrowing Costs

For incurred borrowing costs which can be directly attributed to fixed assets investment real

estate and inventory that need more than one year of purchasing construction or production

activities to reach the preset usable or sellable status shall be capitalized when the asset

expenditure has occurred the borrowing costs have occurred and the purchasing construction or

production activities necessary for the asset to reach the preset usable or sellable status have

begun; When the acquisition construction or production of assets that meet the capitalization

conditions reach the intended usable or sellable status capitalization is stopped and the

borrowing costs incurred thereafter are included in the profits and losses of the current period. If

there is an abnormal interruption in the acquisition construction or production of assets that meet

the capitalization conditions and the interruption lasts for more than 3 consecutive months the

capitalization of borrowing costs will be suspended until the acquisition construction or

production of assets starts again.The to-be-capitalized amount of interests shall be determined in light of the actual interests

incurred of the specially borrowed loan at the present period minus the income of interests earned

on the unused borrowing loans as a deposit in the bank or as a temporary investment; the

enterprise shall calculate and determine the to-be-capitalized amount on the general borrowing by

multiplying the weighted average asset disbursement of the part of the accumulative asset

disbursements minus the general borrowing by the capitalization rate of the general borrowing

used. The capitalization rate shall be calculated and determined in light of the weighted average

interest rate of the general borrowing.25. Intangible Assets

The Company’s intangible assets include land use rights patented technology and

non-proprietary technology which are measured at actual cost at the time of acquisition.Acquired intangible assets are stated at actual cost based on the actual price paid and related other

expenses. The actual cost of intangible assets invested by investors is determined at the value

agreed in the investment contract or agreement but if the agreed value in the contract or

agreement is not fair the actual cost is determined at fair value. Intangible assets such as patents

acquired in a merger not under common control but owned by the acquiree but not recognized in

its financial statements are recognized as intangible assets at fair value at the time of initial

recognition of the acquiree’s assets.Land use rights are amortized equally over the years from the commencement date of the grant;

intangible assets such as software and patents are amortized equally over the shortest of the

estimated useful life the contractual beneficiary life and the effective life prescribed by law. The

amortization amount is charged to the cost of the related assets and current profit or loss

according to their beneficiaries. The estimated useful life and amortization method of intangible

assets with finite useful lives are reviewed at the end of each year. Accounting estimation

methods are used when changes are required.The main research and development projects of the Company include the performance

improvement project of Mini & Micro LED.

(1) Specific criteria for dividing the research phase and development phase

“Research” means an original and planned investigation to acquire and understand new scientific

or technical knowledge.“Development” means the application of research results or other knowledge to one or more plans

or designs to produce new or substantially improved materials devices products or to obtain

new processes etc. prior to commercial production or use.Expenses for the research phase are charged to current profit or loss as incurred.

(2) Specific criteria for capitalization of development stage expenditures

Expenditures in the development stage are capitalized when the following conditions are met.① It is feasible technically to finish intangible assets for use or sale;

② It is intended to finish and use or sell the intangible assets;

③ The usefulness of methods for intangible assets to generate economic benefits shall be proved

including being able to prove that there is a potential market for the products manufactured by

applying the intangible assets or there is a potential market for the intangible assets itself or the

intangible assets will be used internally;

④ It is able to finish the development of the intangible assets and able to use or sell the

intangible assets with the support of sufficient technologies financial resources and other

resources;

⑤ The development expenditures of the intangible assets can be reliably measured.26. Impairment of Long-termAssets

For non-current financial Assets of fixed Assets projects under construction intangible Assets

with limited service life investing real estate with cost model long-term equity investment of

subsidiaries cooperative enterprises and joint ventures the Company should judge whether

decrease in value exists on the date of balance sheet. Recoverable amounts should be tested for

decrease in value if it exists. Other intangible Assets of reputation and uncertain service life and

other non-accessible intangible assets should be tested for decrease in value no matter whether it

exists.If the recoverable amount is less than carrying value in impairment test results the provision for

impairment of differences should include in impairment loss. Recoverable amounts would be the

higher of net value of asset fair value deducting disposal charges or present value of predicted

cash flow. Asset fair value should be determined according to negotiated sales price of fair trade.If no sales agreement exists but with asset active market fair value should be determined

according to the Buyer’s price of the asset. If no sales agreement or asset active market exists

asset fair value could be acquired on the basis of best information available. Disposal expenses

include legal fees taxes cartage or other direct expenses of merchantable Assets related to asset

disposal. Present value of predicted asset cash flow should be determined by the proper discount

rate according to Assets in service and predicted cash flow of final disposal. Asset depreciation

reserves should be calculated on the basis of single Assets. If it is difficult to predict the

recoverable amounts for single Assets recoverable amounts should be determined according to

the belonging asset group. Asset group is the minimum asset combination producing cash flow

independently.In impairment test carrying value of the business reputation in financial report should be shared

to beneficial asset group and asset group combination in collaboration of business merger. It is

shown in the test that if recoverable amounts of shared business reputation asset group or asset

group combination are lower than book value it should determine the impairment loss.Impairment loss amount should firstly be deducted and shared to the carrying value of business

reputation of asset group or asset group combination then deduct carrying value of all assets

according to proportions of other carrying value of above assets in asset group or asset group

combination except business reputation.After the asset impairment loss is determined recoverable value amounts would not be returned

in future.27. Long-term Deferred Expenses

The Long-term deferred expenses of the Company including renovation cost mold cost and so on

shall be amortized evenly during the benefit period. If these long-term deferred expenses cannot

benefit the future accounting period the amortized value of this item that has not been amortized

shall be transferred to the current profit and loss.28. Contract Liabilities

Liabilities of contracts refer to the Company'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 Company has obtained the right to unconditionally collect the

contract consideration the liabilities of contracts shall be recognized based on the amount

received or receivable at the earlier point between the actual payment by the customer and the

payment due.29. Employee Compensation

Salaries of staff of the Company include short-term salary post-employment benefits termination

compensation and other long-term benefits.Short-term salary mainly includes wages bonuses allowances and subsidies as well as employee

benefits medical insurance maternity insurance employment injury insurance housing provident

fund labor union expenses and staff education expenses and non-monetary benefits. During the

accounting period when the employees provide services the actual short-term compensation is

recognised as a liability that shall be included in the current profit and loss or the cost of related

assets according to the beneficiary.The post-employment benefits mainly include the basic endowment insurance etc. They are

divided into defined contribution plans and defined benefit plans in accordance with the risks and

obligations undertaken by the Company. 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

Company 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 Company cannot terminate the labour relations unilaterally or reduce the demission

welfare remuneration and liabilities produced from the demission welfare should be determined

and included in current profits and losses when determining the costs of demission welfare and

recombination. However demission welfare not fully paid within 12 months after annual

Reporting Period should be handled the same as other long-term employees’ payrolls.The inside employee retirement plan is treated by adopting the same principle with the above

dismiss ion welfare. The Company would recorded the salary and the social security insurance

fees paid and so on from the employee’s service termination date to normal retirement date into

current profits and losses (dismission welfare) under the condition that they meet the recognition

conditions of estimated liabilities.The other long-term welfare that the Company 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.30. Provisions

The Company should recognize the related obligation as a provision for liability when the

obligation meets the following conditions: (1) That obligation is a present obligation of the

enterprise; (2) It is probable that an outflow of economic benefits from the enterprise will be

required to settle the obligation; (3) A reliable estimate can be made of the amount of the

obligation.On the balance sheet date an enterprise shall take into full consideration of the risks uncertainty

time value of money and other factors pertinent to the Contingencies to measure the provisions in

accordance with the best estimate of the necessary expenses for the performance of the current

obligation.When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is

expected to be compensated by a third party the compensation should be separately recognized as

an asset only when it is virtually certain that the reimbursement will be obtained. Besides the

amount recognized for the reimbursement should not exceed the carrying value of the estimated

liabilities.31. Principles of Revenue Recognition and Measurement Method

The revenue of the Company mainly consists of the income from main business and the income

from other businesses.

(1)Revenue recognition principle

The company has fulfilled the performance obligations in the contract that is when the customer

obtains control of the relevant goods or services revenue is recognized. Obtaining control over

related goods or services means being able to lead the use of the goods or the provision of such

services and obtain almost all of the economic benefits from it.On the starting date of the contract the company evaluates the contract identifies each individual

performance obligation contained in the contract and determines whether each individual

performance obligation is performed within a certain period of time or at a certain point in time.When one of the following conditions is met it is a performance obligation within a certain

period of time otherwise it is a performance obligation at a certain point in time:

①The customer obtains and consumes the economic benefits brought by the company's

performance at the same time the company performs the contract.②The customer can control the products under construction during the performance of the

company.③The goods produced during the performance of the company have irreplaceable uses and the

company has the right to collect payments for the cumulative performance of the contract during

the entire contract period.For performance obligations performed within a certain period of time the company recognizes

revenue according to the performance progress during that period. When the performance

progress cannot be reasonably determined if the cost incurred by the company 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 company recognizes

revenue at the point when the customer obtains control of the relevant goods or services. When

judging whether a customer has obtained control of goods or services the company considers the

following signs:

①The Company enjoys the current right to receive payment for the goods or services.②The Company has transferred the legal ownership of the product to the customer.③The Company has transferred the goods in kind to the customer.④The Company has transferred the main risks and rewards of the ownership of the product to the

customer.⑤The customer has accepted the goods or services.The company has transferred goods or services to customers and the right to receive consideration

is listed as contract assets and contract assets are devalued on the basis of expected credit losses.The company's unconditional right to collect consideration from customers is listed as receivables.The company’s obligation to transfer goods or services to customers due to the consideration

received from customers is listed as contract liabilities.

(2) Principles of income measurement

① If the contract contains two or more performance obligations at the beginning of the contract

the company will allocate the transaction price to each individual performance obligation based

on the relative proportion of the stand-alone selling price of the goods or services promised by

each individual performance obligation. Revenue is measured at the transaction price of each

individual performance obligation.②The 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

confirmed by the company does not exceed the amount at which the accumulated confirmed

income will most likely not undergo a significant reversal when the relevant uncertainty is

eliminated. It is expected that the money returned to the customer will not be included in the

transaction price as a liability.③If there is variable consideration in the contract such as cash discounts and price guarantees in

part of the contract between the company and its customers the company determines the best

estimate of the variable consideration according to the expected value or the most likely amount

but includes the variable The transaction price of the consideration shall not exceed the amount at

which the accumulated confirmed income is unlikely to be reversed significantly when the

relevant uncertainty is eliminated.④For the consideration payable to customers the company offsets the transaction price from the

consideration payable to customers and offsets the current income at the time when the relevant

income is recognized and the payment (or promised to pay) the customer consideration is later

unless the consideration payable is for Obtain other clearly distinguishable products from

customers.⑤For sales with a sales return clause when the customer obtains control of the relevant product

the company recognizes revenue based on the amount of consideration expected to be received

due to the transfer of the product to the customer and the expected return due to the sales return

is recognized as an estimated liability ; At the same time according to the expected book value of

the returned goods at the time of transfer the balance after deducting the estimated cost of

recovering the goods (including the value impairment of the returned goods) is recognized as an

asset that is the return cost receivable according to the transferred goods The book value at the

time of the transfer deducting the net carry-over cost of the aforementioned asset cost. On each

balance sheet date the company 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 company shall determine the

transaction price based on the amount payable in cash when the customer assumes control of the

goods or services. Using the discount rate that discounts the nominal amount of the contract

consideration into the current commodity price the difference between the determined transaction

price and the amount of the consideration promised in the contract is amortized by the actual

interest method during the contract period. On the starting date of the contract the company

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.⑦According to contractual agreements legal provisions etc. the company 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 company conducts accounting

treatment in accordance with "contingent events-estimated liabilities". For the service quality

assurance that provides a separate service in order to assure customers that the goods sold meet

the established standards the company regards it as a single performance obligation based on the

stand-alone selling price of the quality assurance of goods and services. In a relative proportion

part of the transaction price is allocated to service quality assurance and revenue is recognized

when the customer obtains control of the service. When assessing whether the quality assurance

provides a separate service in addition to ensuring that the products sold meet the established

standards the company considers whether the quality assurance is a legal requirement the quality

assurance period and the nature of the company's commitment to perform the tasks.⑧ When the construction contract between the company and the customer is changed: ①If the

contract change adds clearly distinguishable construction services and contract prices and the

new contract price reflects the stand-alone selling price of the new construction services the

company will The contract change shall be treated as a separate contract for accounting treatment;

②If the contract change does not fall into the above-mentioned circumstance ① and there is a

clear distinction between the construction services that have been transferred and the construction

services that have not been transferred on the date of the contract change the company Treat it as

the termination of the original contract and at the same time merge the unfulfilled part of the

original contract and the changed part of the contract into a new contract for accounting treatment;

③If the contract change does not fall into the above situation ① and the construction service has

been transferred on the date of contract change There is no clear distinction between the

construction service and the untransferred construction service. The company accounts for the

changed part of the contract as a component of the original contract. The resulting impact on the

recognized revenue will be adjusted on the date of contract change.

(3) Specific methods of revenue recognition

① Revenue recognized on time

The company'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 company 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 company 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.②Income confirmed according to the performance progress

The company's business contracts with customers for project construction online advertising

operating leases etc. are performance obligations performed within a certain period of time and

revenue is recognized according to the progress of the performance.32. Government Grants

The government grants of the Company are divided into asset-based grants related to and

income-based grants. Asset-based grants refer to the government grants for long-term assets

obtained by the purchase construction and other ways. Income-based grants refer to other grants.If the beneficiaries are not specified in government documents the Company will make the

distinction according to the aforesaid principle. Beneficiaries which are difficult to categorize

shall be classified as an income-based government grant as a whole.Current elements of government grants shall be measured based on the amount actually received.Those shall be measured according to the amount receivable are grants paid according to a fixed

quota standard or funds that meet the relevant conditions stipulated by the financial support

policy with conclusive evidence at the end of the year and which are expected as the financial

support. Non-monetary elements of the government grants shall be measured at fair value. Those

whose fair value cannot be obtained reliably shall be measured at its nominal amount (RMB1).Asset-based grants shall be used to offset the carrying value of related assets or presented as

deferred income and shall over the life of the related asset be included in the current profits and

losses by the equal amortization method.If the related asset is sold transferred scrapped or damaged before the end of its useful life its

deferred income that has not been distributed shall be transferred to the current profit and loss of

asset disposal.Income-based grants that are used to compensate related costs or losses in subsequent periods

shall be deemed as deferred income and shall be included in the current profits and losses during

the period when the related costs or losses are recognized. Government grants related to routine

activities shall be included in other income in accordance with the nature of the transaction.Government grants not related to routine activities shall be included in non-operating income and

expenditure.The Company obtains interest grants on policy-related concessional loans in two different ways:

the interest subsidy funds are allocated by the government either to the lending bank or directly to

the Company. 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 Company 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. (Alternatively the fair value of the loan is taken as the

entry value and the borrowing costs are calculated using the effective interest rate method. The

difference between the actual amount received and the fair value is recognized as deferred income

which is amortized using the effective interest rate method during the loan term to offset

borrowing costs);

(2) Where the government allocates the funds directly to the Company the grants are offset

against borrowing costs.Where the government grants that the Company has recognized in accounting need to be returned

the accounting treatment in the current period is carried out as follows:

1) If the book value of an asset is offset on initial recognition the book value will be adjusted;

2) If there is deferred income the book balance of the deferred income will be offset and the

excess will be included in profit or loss in the current period;

3) Under any other circumstances the grants will be included in profit or loss in the current

period.33. Deferred Income Tax Assets/Deferred Income Tax Liabilities

The Company's deferred tax assets and deferred tax liabilities are calculated and recognized based

on the difference (temporary difference) between the tax base and book value of the assets and

liabilities. In the case of deductible losses that can be deducted from taxable income in

subsequent years in accordance with the provisions of the tax laws the corresponding deferred

income tax assets are recognized. In the case of temporary differences arising from the initial

recognition of goodwill the corresponding deferred income tax liabilities are not recognized.With respect to temporary differences arising from the initial recognition of an asset or liability in

a transaction which isn’t a business combination and which affects neither accounting profit nor

taxable income (or deductible losses) the corresponding deferred income tax assets and deferred

income tax liabilities are not recognized. On the balance sheet date the deferred income tax assets

and deferred income tax liabilities are measured at the tax rate applicable to the period during

which the assets are expected to be recovered or the liabilities are expected to be settled.The Company recognizes deferred income tax assets to the extent of the taxable income which it

is most likely to obtain and which can be deducted from deductible temporary differences

deductible losses and tax credits.34. Leasing

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.The Company will on the effectiveness date of a contract assess whether the contract is a lease

or includes any lease. The Company will not reassess whether a contract is a lease or includes any

lease unless there is any alteration of the terms or conditions of the contract.

(1) The Company's recording of the lease business as the lessee

1) Lease splitting

If a contract contains both lease and non-lease parts (one or more parts) the Company will split

the lease and non-lease parts and split contract consideration according to the relative proportion

between the sum of the prices of all the lease parts and that of the prices of all the non-lease parts.2) Right-of-use assets

The Company will recognize lease-related right-of-use assets on the inception date of the lease

term excluding short-term and low-value asset leases. The term "lease inception date" refers to

the start date on which the lessor provides the leased asset(s) to make it/them available to the

Company. The Company initially measures the right-of-use assets at cost. The cost includes:

a) Initial measurement amount of lease obligation;

b) Lease payments made on or before the lease inception date (if a lease incentive exists deduct

the amount related to the lease incentive already taken);

c) Initial direct expenses incurred by the Company;

d) Costs expected to be incurred by the Company for dismantling and removing the leased

asset(s) restoring the premises where the leased asset(s) is/are located or restoring the leased

asset(s) to the status agreed in the leasing clauses (excluding costs incurred for inventory

production)

The Company depreciates the right-of-use assets in accordance with relevant depreciation

provisions of the Accounting Standards for Business Enterprises No. 4 - Fixed Assets. If it is

reasonably certain that the ownership of the leased asset(s) will be obtained at the end of the lease

term the Company will depreciate the right-of-use assets over the remaining service life of the

leased asset(s). If it is not reasonably certain that the ownership of the leasehold property will be

obtained at the end of the lease term the Company will depreciate the leased asset(s) over the

lease term or the remaining service life whichever is shorter.The Company will determine the impairment of the right-of-use assets and conduct accounting

treatment of the impairment losses already identified in accordance with relevant provisions of

the Accounting Standards for Business Enterprises No. 8 - Asset Impairment.3) Lease obligation

The Company initially measures the lease obligation on the inception date of the lease term at the

present value of the lease payments outstanding on the same date excluding short-term and

low-value asset leases. When calculating the present value of the lease payments the Company

uses the interest rate implicit in lease as the rate of discount. If the Company fails to determine the

interest rate implicit in lease its incremental lending rate will be used as the rate of discount.The term "lease payments" refers to the payments made by the Company to the lessor in terms of

the use of the leased asset(s) within the lease term including:

a) Fixed lease payments and substantial fixed lease payments (if a lease incentive exists deduct

the amount related to the lease incentive);

b) Variable lease payments that depend on indexation or ratio;

c) Exercise price of the purchase option reasonably determined by the Company to exercise;

d) Payments required to be made for exercising the option to terminate the lease if the lease term

reflects that the Company will exercise such an option;

e) Payments estimated to be made in line with the secured residual value provided by the

Company.The variable lease payments that depend on indexation or ratio shall in times of initial

measurement be determined according to the indexation or ratio on the inception date of the lease

term. Variable lease payments that are not covered in the measurement of the lease obligations are

included in profit or loss for the current period or the cost of relevant assets when actually

incurred.The Group will after the inception date of the lease term calculate the interest expenses of the

lease obligations during each period of the lease term at a fixed periodic interest rate and include

them in profit or loss for the current period or the cost of relevant assets.4) Short-term and low-value asset leases

The Company selects not to recognize the right-of-use assets and lease obligations for the

short-term and low-value asset leases of houses buildings machinery equipment transportation

tools office equipment and other equipment. A short-term lease refers to a lease whose lease term

does not exceed 12 months from the inception date thereof typically not involving the purchase

option. A low-value asset lease refers to a lease in which the value of a single leased asset is

typically lower than other assets if it is a new asset. The Company 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.

(2) The Company's recording of the lease business as the lessor

1) The Company's recording of the lease business as the lessor

The Company recognizes the receipts of the operating lease incurred during each period of the

lease term as rentals by the straight-line method. The Company capitalizes the initial direct costs

related to the operating lease upon incurrence thereof and within the lease term apportions and

includes such costs in the current profit or loss on the basis same as the recognition of rentals.2) The Company's recording of the finance lease business as the lessor

On the inception date of the lease term the Company records the sum of the minimum lease

receipts and the initial direct costs as the entry value of the finance lease receivables while

recording the unguaranteed residual value and it recognizes the difference between the sum of

the minimum lease receipts the initial direct costs and the unguaranteed residual value and that of

their present values as unrealized financing income. The balance of the finance lease receivables

upon deduction of the unrealized financing income is respectively listed in the long-term claims

and long-term claims due within one year.During the lease term the unrealized financing income is calculated and recognized as the

financing income for the current period by the effective interest rate method. The contingent

rentals are included in the profit or loss for the current period upon actual incurrence thereof.35. Changes in Main Accounting Policies and Estimates

(1) Changes of accounting policies

In 2018 the Ministry of Finance issued the revised "Accounting Standards for Business

Enterprises No. 21-Leases" (referred to as the "New Lease Standards"). The Company starts to

implement the above newly revised standards since 1 January 2021. In accordance with the link

up provision no adjustment was made to information of comparative period and the Company

retroactively adjusted the retained earnings of period-begin and amount of other relevant items in

financial statements based on the difference between the current standards and the new standards

on the first execution date.The new lease standards have improved the definition of lease added such contents as lease

identification separation and combination canceled the classification of operating lease and finance

lease by the lessor and proposed such a requirement that the right-of-use assets and lease obligations

shall on the lease inception date be recognized and respectively included in depreciation and interest

expenses for all leases (excluding short-term and low-value asset leases); in addition they have also

improved the lessee's subsequent measurement of leases while adding such contents as accounting

treatment in case of option reassessment and lease change as well as relevant disclosure requirements.These new standards have also enriched the contents to be disclosed by the lessor. According to the

provisions of the aforesaid new lease standards for a contract already existing prior to the initial

exercise date the Company will decide not to reassess whether it is a lease or includes any lease on

the initial inception date.For operating leases in which any asset leased by the Company as the lessee prior to the initial

exercise date is a low-value asset and for operating license to be completed within 12 months the

Company will treat them in a simplified way without recognizing the right-of-use assets or lease

obligations.According to the new lease standards it is unnecessary for the Company as the lessor to adjust

leases according to the bridging provisions and the accounting treatment of leases shall be conducted

according to these new standards as of the initial exercise date.

(2) Changes in Accounting Estimates

No such cases in the Reporting Period.

(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any

New Standards Governing Leases since 2021

1）Consolidated balance sheet:

Unit: RMB

Item 31 December 2020 1 January 2021 Adjustment

Current assets:

Prepayments 1183270543.41 1182471715.24 -798828.17

Other receivables 2145736640.60 2145209803.70 -526836.90

Total current assets 25138685951.57 25137360286.50 -1325665.07

Non-current assets:

Right-of-use assets 103838847.54 103838847.54

Total non-current 24737581542.04 24841420389.58 103838847.54

assets

Total assets 49876267493.61 49978780676.08 102513182.47

Current liabilities:

Other payables 1999430899.69 1991555887.10 -7875012.59

Current portion of

376896566.29 425552664.43 48656098.14

non-current liabilities

Total current liabilities 26979203650.51 27019984736.06 40781085.55

Non-current liabilities:

Lease liabilities 61732096.92 61732096.92

Item 31 December 2020 1 January 2021 Adjustment

Total non-current 12176168718.46 12237900815.38 61732096.92

liabilities

Total liabilities 39155372368.97 39257885551.44 102513182.47

Total liabilities and 49876267493.61 49978780676.08 102513182.47

shareholders’ equity

2）Balance Sheet of the Company as the Parent

Unit: RMB

Item 31 December 2020 1 January 2021 Adjustment

Current assets:

Total current assets 21416968747.54 21416968747.54

Non-current assets:

Right-of-use assets 6321843.42 6321843.42

Total non-current 11111803009.84 11118124853.26 6321843.42

assets

Total assets 32528771757.38 32535093600.80 6321843.42

Current liabilities:

Current portion of

5867425.49 8297306.42 2429880.93

non-current liabilities

Total current liabilities 18371248287.48 18373678168.41 2429880.93

Non-current liabilities:

Lease liabilities 3891962.49 3891962.49

Total non-current 8059740136.21 8063632098.70 3891962.49

liabilities

Total liabilities 26430988423.69 26437310267.11 6321843.42

Total liabilities and 32528771757.38 32535093600.80 6321843.42

shareholders’ equity

The following are major changes and influences brought to the Company by the execution of new

lease standards:

On 1 January 2021 the Company recognized lease obligations (including those due within one

year) amounting to RMB110388195.06 and right-of-use assets amounting to

RMB103838847.54. For operating leases prior to the initial exercise date the Company now

measures the lease obligations thereof according to the present value discounted at the

incremental borrowing rate (ranging from 4.35% to 4.90%) on the initial exercise date.Due to the execution of new lease standards the Company has the rentals payable in advance that

are previously included in the prepayments and other receivables and the unpaid rentals payable

that are previously included in other receivables reclassified into the right-of-use assets.V. Taxation

1. Main Taxes and Tax Rate

Category of taxes Basis Specific situation of the taxes rate

Calculated the output tax at the tax

rate and paid the VAT by the amount

VAT 1% 3% 5% 6% 9% 13%

after deducting the deductible

withholding VAT at current period

Category of taxes Basis Specific situation of the taxes rate

of which the VAT applicable to easy

collection won’t belong to the

deductible withholding VAT.Paid at 5%: Dongguan Konka XingDa HongYe

Xinfeng Microcrystalline Boluo Konka Precision

Boluo Konka Dongguan Packing Ningbo

Kanghanrui Jiangsu Konka Smart Shanghai Konka

Chengdu Anren Binzhou Beihai Jingmai Binzhou

Econ Zhongke Suining Pengxi Kangrun Dayi

Urban maintenance Kangrun Water Lushan Kangrun Environmental

The circulating tax actually paid

and construction tax Funan Kangrun Water Subei Kangrun Water

Mengcheng Kangrun Tingyuan Environmental Yibin

Kangrun Yibin Kangrun Medical Yibin Kangrun

Environmental Protection. Paid at 7%: Konka Capital.Paid at 1%: Jiangxi Konka Jiangxi High Transparent

Substrate Jiangkang (Shanghai) Technology. Paid at

7%: other subsidiaries.Education surtax The circulating tax actually paid 3%

Local education surtax The circulating tax actually paid 2%

Enterprise income tax Taxable income 25%/2.Tax Preference and Approved Documents

The main taxpayers of different corporate income tax rates are explained as follows:

Name of entity Income tax rate

Electronics Technology Anhui Konka Anhui

Tongchuang Econ Technology Wankaida Jiangxi

Konka Xinfeng Microcrystalline Jiangxi High 15.00%

Transparent Substrate Sichuan Konka Boluo Konka

Precision Chongqing Kangxingrui

Hong Kong Konka Konka Electrical Appliances

International Trading Jiali International Kangjietong

Jiaxin Technology Jiaxin Technology Konka 16.50%

Electrical Appliances Investment Konka SmartTech

Konka Mobility Kowin Memory (Hong Kong)

Chain Kingdom Memory Technologies 8.25%/16.50%

Konka Europe 15.00%

Kanghao Technology 22.50%

Konka North America 21.00%

The Company as the Parent and other subsidiaries 25.00%

Note: According to regulations of Temporary Provisions of Income Tax of Trans-boundary Tax

Payment Enterprises by State Administration of Taxation resident enterprises without business

establishment or places of legal persons should be tax payment enterprises with the administrativemeasures of income tax of “unified computing level-to-level administration local prepaymentliquidation summary and finance transfer”. It came into force from 1 January 2008. According to

the above methods the Company’s sales branch companies in each area will hand in the corporate

income taxes in advance from 1 January 2008 and will be final settled uniformly by the Company

at the year-end.2. Tax Preference and Approved Documents

(1) According to Caishui [2019] No. 13: Notice on the implementation of the inclusive tax

reduction and exemption policy for small and micro enterprises from 1 January 2019 to 31

December 2021 the annual taxable income of small and profitable enterprises is not The portion

exceeding RMB1 million will be reduced to 25% of the taxable income and the corporate income

tax will be paid at the rate of 20%; the portion of the annual taxable income exceeding RMB1

million but not exceeding RMB3 million will be reduced by 50% Include the taxable income and

pay corporate income tax at a rate of 20%.

(2) On 9 September 2019 Anhui Konka the subsidiary of the Company obtained a certificate of

high-tech enterprise jointly issued by Anhui Science and Technology Department Anhui

Provincial Department of Finance and Anhui Provincial Tax Bureau of the State Administration

of Taxation. The certificate number is GR201934000966 and is valid for three years. According

to relevant tax regulations Anhui Konka shall enjoy relevant preferential tax policies for

high-tech enterprises for three consecutive years from 2019 to 2021 and pay the enterprise

income tax at a preferential tax rate of 15%.

(3) On 16 September 2019 Xinfeng Microcrystalline the subsidiary of the Company obtained a

high-tech enterprise certificate jointly issued by Jiangxi Science and Technology Department

Jiangxi Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State

Administration of Taxation. The certificate number is GR201936000744 and is valid for three

years. According to relevant tax regulations Xinfeng Microcrystalline shall enjoy relevant

preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021

and pay the enterprise income tax at a preferential tax rate of 15%.

(4) On 20 November 2019 Anhui Tongchuang the subsidiary of the Company obtained a

high-tech enterprise certificate jointly issued by Anhui Science and Technology Department

Anhui Provincial Department of Finance and Anhui Provincial Tax Bureau of the State

Administration of Taxation. The certificate number is GR201934001964 and is valid for three

years. According to relevant tax regulations Anhui Tongchuang shall enjoy relevant preferential

tax policies for high-tech enterprises for three consecutive years from 2019 to 2021 and pay the

enterprise income tax at a preferential tax rate of 15%.

(5) On 28 November 2019 Sichuan Konka a subsidiary of the Company obtained a certificate of

high-tech enterprise jointly issued by Sichuan Science and Technology Department Sichuan

Provincial Department of Finance and Sichuan Provincial Tax Bureau of the State Administration

of Taxation. The certificate number is GR201951002096 and is valid for three years. According

to relevant tax regulations Sichuan Konka shall enjoy relevant preferential tax policies for

high-tech enterprises for three consecutive years from 2019 to 2021 and pay the enterprise

income tax at a preferential tax rate of 15%.

(6) On 2 December 2019 Bokang Precision a subsidiary of the Company obtained the high-tech

enterprise certificate jointly issued by the Guangdong Provincial Department of Science and

Technology the Guangdong Provincial Department of Finance the Guangdong State Taxation

Bureau and the Guangdong Local Taxation Bureau. The certificate number is GR201944007820

valid for three years according to relevant tax regulations Bokang Precision has enjoyed relevant

preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021

and is subject to corporate income tax at a preferential tax rate of 15%.

(7) On 9 December 2019 Electronics Technology the subsidiary of the Company obtained a

Certificate of High-tech Enterprise jointly issued by Shenzhen Science and Technology

Department Shenzhen Provincial Department of Finance and Shenzhen Provincial Tax Bureau of

the State Administration of Taxation. The certificate number is GR201944204287 and is valid for

three years. According to relevant tax regulations Electronics Technology shall enjoy relevant

preferential tax policies for high-tech enterprises for three consecutive years from 2019 to 2021

and pay the enterprise income tax at a preferential tax rate of 15%.

(8) On 17 August 2020 Econ Technology a subsidiary of the Company obtained the High-tech

Enterprise Certificate (certificate No.: GR202037000258) jointly issued by Department of

Science and Technology of Shandong Province Department of Finance of Shandong Province

Shandong Provincial Office SAT Shandong Local Taxation Bureau with a valid period of three

years. According to the relevant tax regulations Econ Technology enjoys related tax incentives

for high-tech companies for three consecutive years from 2020 to 2022 and is subject to

corporate income tax at a preferential rate of 15%.

(9) On 14 September 2020 Jiangxi Konka the subsidiary of the Company obtained a high-tech

enterprise certificate jointly issued by Jiangxi Science and Technology Department Jiangxi

Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State Administration

of Taxation. The certificate number is GR202036000802 and is valid for three years. According

to relevant tax regulations Jiangxi Konka shall enjoy relevant preferential tax policies for

high-tech enterprises for three consecutive years from 2020 to 2022 and pay the enterprise

income tax at a preferential tax rate of 15%.

(10) On 14 September 2020 Jiangxi High Transparent Substrate (formerly known as

“Nano-Grystallized Glass”) the subsidiary of the Company obtained a high-tech enterprise

certificate jointly issued by Jiangxi Science and Technology Department Jiangxi Provincial

Department of Finance and Jiangxi Provincial Tax Bureau of the State Administration of

Taxation. The certificate number is GR202036000568 and is valid for three years. According to

relevant tax regulations Jiangxi High Transparent Substrate shall enjoy relevant preferential tax

policies for high-tech enterprises for three consecutive years from 2020 to 2022 and pay the

enterprise income tax at a preferential tax rate of 15%.

(11) On 11 December 2020 Wankaida the subsidiary of this Company obtained the high-tech

enterprise certificate (certificate No.: GR202044201940) jointly issued by Shenzhen Technology

Innovation Committee Finance Committee of Shenzhen Municipality Shenzhen Taxation

Bureau of SAT with a valid period of three years. According to related taxation regulations

Wankaida enjoys related taxation preferential policies as a high-tech enterprise from 2020 to 2022

and pays the enterprise income tax as per the preferential tax rate of 15%.

(12) In accordance with the Notice on Tax Policy Issues Involved in the Further Implementation

of the Western Development Strategy (C.S. [2011] No. 58) and the Announcement on Corporate

Income Tax Issues Involved in the Further Implementation of the Western Development Strategy

(Announcement [2012] No. 12 by the State Taxation Administration) an enterprise established in

the western region who is mainly engaged in an industry specified in the Catalogue of

Encouraged Industries in the Western Region and whose main business income accounts for over

70% of its gross income in the current year is entitled to a reduced corporate income tax rate of

15%. Chongqing Kangxingrui a subsidiary of the Company is eligible for this preferential tax

policy.

(13) According to the Notice on Issues Concerning the Promotion of Energy-Saving Service

Industry Development VAT Business Tax and Corporate Income Tax Policy Issued by the

Ministry of Finance and the State Administration of Taxation (Caishui [2010] No. 110) For the

income the enterprise enjoys the "three exemptions and three halves" preferential treatment of

corporate income tax since the tax year in which the first production and operation income of the

project is obtained. Binhai Sewage Lairun Holdings and Rushan Econ subsidiaries of the

Company enjoy this tax incentive. Binhai Sewage and Lairun Holdings will be exempt from

corporate income tax from 2017 to 2019 and corporate income tax will be levied at half the 25%

legal tax rate from 2020 to 2022. Rushan Econ will be exempt from corporate income tax from

2019 to 2021 and corporate income tax will be levied at half the 25% legal tax rate from 2022 to

2024.

(14) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of

Finance and the State Administration of Taxation for the VAT general taxpayers who sell their

self-developed and produced software products the VAT shall be levied at the rate of 13% and

then the part that the actual tax burden on their VAT exceeds 3 will be implemented with the

policy of immediate withdrawal. The Company’s subsidiaries Wankaida Technology Youzhihui

and Electronics Technology all enjoy this preferential policy.

(15) According to the regulations of the Special Catalogue of VAT Concessions for Products and

Labors with Comprehensive Utilization of Resources issued by the Ministry of Finance and the

State Administration of Taxation (Finance and Taxation [2015] No. 78) the wastewater treatment

business operated by Lairun Holdings and Binhai Sewage subsidiaries of the Company belongs

to the this catalogue. Then after levied the VAT at the statutory tax rate it currently carries out

the tax rate of 6% (SAT Announcement [2020] No. 9 the actual tax burden on the wastewater

treatment income tax will be refunded in accordance with the 70% of the actual tax burden and

the actual tax burden on the renewable water income VAT will be refunded immediately at 50%.The wastewater treatment business operated by Rushan Econ subsidiaries of the Company

belongs to the catalogue. Then after levied the VAT at the statutory tax rate it currently carries

out the tax rate of 6% (SAT Announcement [2020] No. 9 the actual tax burden on the wastewater

treatment income tax will be refunded in accordance with the 70% of the actual tax burden and

the actual tax burden on the renewable water income VAT will be refunded immediately at 50%.

(16) According to the Announcement on the Applicable Policies for the Settlement and Payment

of Corporate Income Tax of Integrated Circuit Design Enterprises and Software Enterprises in

2019 (C.S. [2020] No. 29) integrated circuit design enterprises and software enterprises that are

legally established within the territory of China and meet certain requirements are entitled to a

period of preferential tax rates starting from the first profitable year before 31 December 2019.They are exempt from corporate income tax in the first and second years and for the next three

years till the expiration of this period the corporate income tax rate is half of the statutory rate of

25%. The Company's subsidiary Youzhihui enjoys the preferential policies and a 0% income tax

rate is applicable in 2021.VI Notes on Major Items in Consolidated Financial Statements of the Company

Unless otherwise noted the following annotation project (including the main projects annotation

of the financial statement of the Company) the period-begin refers to 1 January 2021 the

period-end refers to 30 June 2021 this period refers to the period from 1 January 2021 to 30 June

2021 and the last period refers to the period from 1 January 2020 to 30 June 2020. The monetary

unit is renminbi.1. Monetary Assets

Item Ending balance Beginning balance

Cash on hand 9534.97 16052.88

Bank deposits 5159975691.09 4298040060.36

Other monetary assets 648960499.91 1133474067.66

Total 5808945725.97 5431530180.90

Of which: total amount deposited

in overseas 79359852.77 202052024.94

Note: The ending balance of other currency assets is mainly margin deposits financial

supervision account funds and other deposits subject to usage restrictions. Refer to Note VI-66

Assets with restricted ownership or use right for details.2. Trading financial assets

Item Ending balance Beginning balance

Financial assets at fair value through profit

or loss 618249541.66

Of which: debt instrument investment

Equity instrument investment

Structural deposits 618249541.66

Financial assets assigned to be measured at

fair value through profit or loss

Of which: debt instrument investment

Hybrid instrument investment

Total 618249541.66

3. Notes receivable

(1) Notes Receivable Listed by Category

Item Ending balance Beginning balance

Commercial acceptance bill 484538424.18 1012776099.43

Bank’s acceptance bill 1032634966.93 1345404094.53

Total 1517173391.11 2358180193.96

(2) Notes Receivable Pledged by the Company at the Period-end

Item Amount

Bank’s acceptance bill 693159230.21

Total 693159230.21

(3) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due

on the Balance Sheet Date at the Period-end

Item Amount of recognition Amount of not terminated

termination at the recognition at the period-end

period-end

Bank’s acceptance bill 701692531.30

Commercial acceptance bill 2433471.02 199491442.79

Total 704126002.32 199491442.79

(4) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the

Contract or Agreement

Item Amount of the notes transferred to accounts

receivable at the period-end

Bank’s acceptance bill 200000000.00

Commercial acceptance bill 745878417.66

Total 945878417.66

Note: At the end of the period the bills transferred to the accounts receivable due to the issuer’s

failure to perform were the overdue bills of the company's factoring business.

(5) Listed by Withdrawal Methods for Bad Debt Provision

Ending balance

Category

Carrying amount Bad debt provision Carrying value

Withdr

Propo

awal

Amount rtion Amount

proport

(%)

ion (%)

Provision for bad debts

provided individually

Bad debt provision

made as per portfolio 1527263819.71 100.00 10090428.60 0.66 1517173391.11

Of which: Bank

acceptance bill 1032634966.93 67.61 1032634966.93

Commercial

acceptance bill 494628852.78 32.39 10090428.60 2.04 484538424.18

Total 1527263819.71 100.00 10090428.60 0.66 1517173391.11

(Continued)

Beginning balance

Carrying amount Bad debt provision

Withd

Category Propo rawal Carrying value

Amount rtion Amount propo

(%) rtion

(%)

Provision for bad

debts provided

individually

Bad debt provision

made as per portfolio 2387417262.59 100.00 29237068.63 1.22 2358180193.96

Of which: Bank

acceptance bill 1345404094.53 56.35 1345404094.53

Commercial

acceptance bill 1042013168.06 43.65 29237068.63 2.81 1012776099.43

Total 2387417262.59 100.00 29237068.63 1.22 2358180193.96

(6) In the group notes receivable for which the provision for expected credit loss was made

according to trade acceptance

Ending balance

Name

Carrying amount Bad debt Withdrawalprovision proportion (%)

Within 1 year 494628852.78 10090428.60 2.04

Total 494628852.78 10090428.60 2.04

(7) Bad debt provision for notes receivable withdrawn collected or reversed during the Reporting

Period

Changed amount

Category Beginning With Collected orbalance Write-off or Ending balancedraw reversed

al verified

Commercial

acceptance bill 29237068.63 19146640.03 10090428.60

Total 29237068.63 19146640.03 10090428.60

(8) Notes receivable actually written off in the current period

There is no notes receivable actually written off in the current period.4. Accounts Receivable

(1) Listed by Withdrawal Methods for Expected Credit Loss

Ending balance

Carrying amount Bad debt provision

Category Withdr

Proport Carrying valueAmount ion (%) Amount

awal

proport

ion (%)

Accounts receivable

for which the

independent provision 1398702013.10 24.34 765540779.44 54.73 633161233.66

for expected credit

losses

Accounts receivable

for which the provision

for expected credit

losses was withdrawn

according to groups

Of which: aging group 3396271822.61 59.10 308692123.69 9.09 3087579698.92

Project payment

952005539.60 16.56 123155445.59 12.94 828850094.01

group

Subtotal of groups 4348277362.21 75.66 431847569.28 9.93 3916429792.93

Total 5746979375.31 100.00 1197388348.72 20.84 4549591026.59

(Continued)

Beginning balance

Carrying amount Bad debt provision

Category Withdr

Proport awal Carrying valueAmount ion (%) Amount proport

ion (%)

Accounts receivable

for which the

independent provision 1384462893.38 27.50 750096749.22 54.18 634366144.16

for expected credit

losses

Accounts receivable

for which the provision

for expected credit

losses was withdrawn

according to groups

Of which: aging group 3004054396.28 59.66 271291702.62 9.03 2732762693.66

Project payment

group 646556634.10 12.84 112787848.33 17.44 533768785.77

Subtotal of groups 3650611030.38 72.50 384079550.95 10.52 3266531479.43

Total 5035073923.76 100.00 1134176300.17 22.53 3900897623.59

1) Accounts receivable for which the independent provision for expected credit loss is made at

the period-end

Ending balance

Withdra

Name Carrying Bad debt wal Withdrawal

amount provision proportio reason

n (%)

Shanghai Huaxin

300018021.01 240014416.81 80.00 Debt default

International Group Co. Ltd

Hongtu Sanbao High-tech Agreement

200000000.00 80000000.00 40.00

Technology Co. Ltd. reorganization

Tewoo Finance Company Judicial

200000000.00 90000000.00 45.00

Limited reorganization

China Nuclear Engineering Increased credit

72639096.65 22374785.74 30.80

Construction Group Co. Ltd risk

No.1 Engineering Company

Expected to be

Limited of CCCC First

65221300.00 58699170.00 90.00 difficult to

Harbor Engineering Company

recover in full

Limited

Debt

Tahoe Group Co. Ltd 50000000.00 20000000.00 40.00

reorganization

Expected to be

China Energy Electric Fuel

50000000.00 40000000.00 80.00 difficult to

Co. Ltd

recover in full

Long-term

collection and

EmpireElectronicCorp 42051136.30 42051136.30 100.00

cannot be

recovered

The

counterparty is

bankrupt and is

H-BUSTERDOBRASILI 17767310.32 17767310.32 100.00

expected to be

difficult to

recover

Expected to be

TreeviewBusinessRegistration 11533071.11 11533071.11 100.00 difficult to

recover in full

Increased credit

Others 389472077.71 143100889.16 36.74

risk

Total 1398702013.10 765540779.44 54.73

2) Accounts receivable for which the provision for expected credit losses was withdrawn

according to groups

① In the group accounts receivable for which the provision for expected credit loss was made

according to aging groups

Aging Ending balance

Carrying amount Bad debt provision Withdrawalproportion (%)

Within 1 year 2556074660.66 52143923.09 2.04

1 to 2 years 550987178.29 55208915.26 10.02

2-3 years 104180404.75 23638533.82 22.69

3-4 years 20867959.50 13539132.11 64.88

Over 4 years 164161619.41 164161619.41 100.00

Total 3396271822.61 308692123.69 9.09

② In the group accounts receivable for which the provision for expected credit loss was made

according to project payment groups

Ending balance

Aging

Carrying amount Bad debt provision Withdrawal proportion(%)

Within 1 year 579801611.63 28990080.58 5.00

1 to 2 years 215058744.95 21505874.48 10.00

2-3 years 61349562.07 18404868.62 30.00

3-4 years 82889837.11 41444918.56 50.00

Over 4 years 12905783.84 12809703.35 99.26

Total 952005539.60 123155445.59 12.94

(2) Accounts Receivable Listed by Aging

Aging Ending balance

Within 1 year 3137254613.66

1 to 2 years 1283600174.24

2-3 years 985861130.06

3-4 years 118434709.06

Over 4 years 221828748.29

Subtotal 5746979375.31

Less: provision for bad debts 1197388348.72

Total 4549591026.59

(3) Bad debt provision for accounts receivable during the Reporting Period

Changed amount

Colle Writ

Categ

Beginning balance cted e-off Decrease Ending balance

ory Withdrawal or or for other

rever verifi reasons

sed ed

Bad

debt

1134176300.17 64007725.46 795676.91 1197388348.72

provisi

on of

Changed amount

Colle Writ

Categ

Beginning balance cted e-off Decrease Ending balance

ory Withdrawal or or for other

rever verifi reasons

sed ed

accoun

ts

receiva

ble

Total 1134176300.17 64007725.46 795676.91 1197388348.72

(4) Accounts receivable actually verified during the Reporting Period

There were no accounts receivable actually verified during the Reporting Period

(5) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears

Party

The total amount of top five of account receivable of ending balance collected by arrears party

was RMB 1850904230.04 accounting for 32.21% of total closing balance of account receivable

the relevant ending balance of bad debt provision withdrawn was RMB446133386.05.

(6) There was no accounts receivable derecognized for transfer of financial assets.

(7) There is no amount of assets and liabilities formed due to the transfer of accounts receivable

and continued involvement in this year.5. Accounts Receivable Financing

Item Ending balance Beginning balance

Notes Receivable 111375140.87 84057197.44

Total 111375140.87 84057197.44

Note: Accounts receivable financing is the bank acceptances of higher credit rating held by the

Company which aim at both collecting contract cash and selling the financial assets themselves.6. Prepayments

(1) Age of advances to suppliers

Ending balance Beginning balance

Item Amount Proportion Amount Proportion

(%) (%)

Within 1 year 1180899468.37 94.80 1165964102.58 98.60

1 to 2 years 48185527.45 3.87 14282024.18 1.21

2-3 years 14919139.92 1.20 733390.33 0.06

Over 3 years 1608577.38 0.13 1492198.15 0.13

Total 1245612713.12 100.00 1182471715.24 100.00

Note: The amount of prepayments aged over one year at the end of the period is RMB

64713244.75 accounting for 5.20% of the total balance of prepayments of the Company and

consists mainly of payments for goods afloat or unsettled payments.

(2) Advances to suppliers from top five prepaid parties classified based on the ending balance

The sum total of prepayments with top five ending balance collected as per the prepaid party is

RMB 666288915.38 and the proportion in total ending balance of payments is 53.49%.7. Other receivables

Item Ending balance Beginning balance

Interest receivable 54484552.15 45109425.85

Item Ending balance Beginning balance

Dividends receivable 547848.62 4947848.62

Other Receivables 1947638531.25 2095152529.23

Total 2002670932.02 2145209803.70

7.1 Interest receivable

Item Ending balance Beginning balance

Fix time deposit 1324149.54 10235673.76

Entrusted loans 52589846.73 34303196.21

Factoring income 570555.88 570555.88

Total 54484552.15 45109425.85

7.2 Dividends receivable

Investee Ending balance Beginning balance

Chongqing Qingjia Electronic Co.Ltd. 547848.62 547848.62

Binzhou Beihai Weiqiao Solid Waste

Treatment Co. Ltd. 4400000.00

Total 547848.62 4947848.62

7.3 Other receivables

(1) Classified by Account Nature

Item Ending balance Beginning balance

DepositDeposit Deposit 1680032404.13 1642180460.58

Intercourse funds among minority

shareholders in the business

consolidation not under the same 178104342.21 176427511.36

control and related parties

Energy-saving subsidies 152399342.00 152399342.00

Disposal of non-current assets 132331700.00

Others 610032960.00 638277470.76

Total 2620569048.34 2741616484.70

(2) Withdrawal of Bad Debt Provision

Phase I Phase II Phase III

Expected Expected

Expected credit losses credit losses

Bad debt provision credit losses for the entire for the entire Total

over the next duration (no duration (with

12 months credit credit

impairment) impairment)

Balance as at 1 January

22563051.40 60086857.29 563814046.78 646463955.472021

In the Reporting Period

Carrying amount of other

receivables on 1 January

2021:

Phase I Phase II Phase III

Expected Expected

Expected credit losses credit losses

Bad debt provision credit losses for the entire for the entire Total

over the next duration (no duration (with

12 months credit credit

impairment) impairment)

——Transferred to the

-6491687.33 6491687.33

Phase II

——Transferred to the

-243220.74 243220.74

Phase III

——Transferred back to

the Phase II

——Transferred back to

the Phase I

Provision made in the

-281860.53 28935282.95 -2122329.79 26531092.63

current year

Amount transferred back in

the current year

Write-off

Verification

Other changes -64531.01 -64531.01

Balance as at 30 June 2021 15724972.53 95270606.83 561934937.73 672930517.09

Note: The first stage is that credit risk has not increased significantly since initial recognition. For

other receivables with an aging portfolio and a low-risk portfolio within 1 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 1 year the loss provision is measured based on the expected credit losses for

the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables of credit

impairment that have occurred the loss provision is measured according to the credit losses that

have occurred throughout the duration.

(3) Withdrawing bad debt provision for other receivables according to group

Ending balance

Carrying amount Bad debt provision

With

Category Propo draw Carrying value

Amount rtion Amount al

(%) propo

rtion

Other receivables

with significant

individual amount

and make 1176983042.62 44.91 561934937.73 47.74 615048104.89

independent

provision for

expected credit loss

Ending balance

Carrying amount Bad debt provision

With

Category Propo draw Carrying value

Amount rtion Amount al

(%) propo

rtion

Other receivables

withdrawn bad debt

provision according

to credit risks

characteristics

Aging group 1234608154.98 47.12 103359395.49 8.37 1131248759.49

Low-risk group 208977850.74 7.97 7636183.87 3.65 201341666.87

Subtotal of groups 1443586005.72 55.09 110995579.36 7.69 1332590426.36

Total 2620569048.34 100.00 672930517.09 25.68 1947638531.25

(Continued)

Beginning balance

Carrying amount Bad debt provision

Category WithdrPropo

awal Carrying value

Amount rtion Amount

propor

(%)

tion

Other receivables

with significant

individual amount

and make 1177068758.61 42.93 563814046.78 47.90 613254711.83

independent

provision for

expected credit loss

Other receivables

withdrawn bad debt

provision according

to credit risks

characteristics

Aging group 1327676325.32 48.43 73662861.99 5.55 1254013463.33

Low-risk group 236871400.77 8.64 8987046.70 3.79 227884354.07

Subtotal of groups 1564547726.09 57.07 82649908.69 5.28 1481897817.40

Total 2741616484.70 100.00 646463955.47 23.58 2095152529.23

(4) Listed by aging

Aging Ending balance

Within 1 year 830239625.35

1 to 2 years 1445123746.26

2-3 years 143356114.57

3-4 years 6173200.66

Aging Ending balance

4-5 years 5293746.88

Over 5 years 190382614.62

Subtotal 2620569048.34

Less: bad debt provision 672930517.09

Total 1947638531.25

(5) Bad Debt Provision for Other Receivables

The amount of bad debt provision for Reporting Period was RMB26531092.63 decreasing

RMB64531.01 which was mainly due to exchange rate changes

(6) Top 5 Other Receivables in Ending Balance Collected according to the Arrears Party

The total amount of top five of account other receivables of ending balance collected by arrears

party was RMB1020353281.63 accounting for 38.94% of total closing balance of other

receivables the relevant ending balance of bad debt provision withdrawn was

RMB199693940.01.

(7) There were no other receivables derecognized due to transfer of financial assets during the

Reporting Period.

(8) There were no assets and liabilities formed by transferring other receivables and continuing to

be involved in this period.8. Inventories

(1) Category of Inventory

Ending balance

Inventory falling

Item price reserves /

Carrying amount impairment Carrying value

provision of contract

performance costs

Raw materials 1808248192.19 20090802.48 1788157389.71

Semi-finished

product 194322474.09 13226031.20 181096442.89

Inventory goods 3352411906.73 209137182.49 3143274724.24

Contract

performance 46732650.07 46732650.07

costs

Total 5401715223.08 242454016.17 5159261206.91

(Continued)

Beginning balance

Inventory falling

Item price reserves /

Carrying amount impairment Carrying value

provision of contract

performance costs

Raw materials 1246721423.97 28137287.12 1218584136.85

Semi-finished

product 158870091.24 12636819.92 146233271.32

Inventory

goods 3389343445.93 249362200.01 3139981245.92

Beginning balance

Inventory falling

Item price reserves /

Carrying amount impairment Carrying value

provision of contract

performance costs

Contract

performance 16502023.32 16502023.32

costs

Total 4811436984.46 290136307.05 4521300677.41

(2) Inventory falling price reserves and impairment provision of contract performance costs

Increased Decreased

Decrease

Item Beginning by losing Endingbalance Withdrawal Write-off controlling balance

right/other

reasons

Raw

materials 28137287.12 -4614719.70 3431764.94 20090802.48

Semi-fini

shed 12636819.92 589211.28 13226031.20

product

Inventory

goods 249362200.01 14598745.33 54823762.85 209137182.49

Total 290136307.05 10573236.91 58255527.79 242454016.17

（3）Withdrawal Provision Basis of the Falling Price of the Inventory and the Reasons of the

Reversed or Write-off.Specific basis of withdrawal of falling

Item Reasons for write-off

price reserves of inventory

The realizable net value was lower than the

Raw materials Sold or disposed in the current period

carrying value

Semi-finished The realizable net value was lower than the

product Sold or disposed in the current periodcarrying value

Inventory The realizable net value was lower than the

goods Sold in the current periodcarrying value

9. Contractual assets

(1) Details of contractual assets

Ending balance

Item Carrying amount Impairment Carrying value

provision

Accounts receivable from

settled but conditional 3382989961.11 198514062.13 3184475898.98

payment projects

Unsettled advertising

payments 95474154.11 1947672.75 93526481.36

Total 3478464115.22 200461734.88 3278002380.34

(Continued)

Beginning balance

Item Carrying amount Impairment Carrying value

provision

Accounts receivable from

settled but conditional 3002127112.18 180488971.89 2821638140.29

payment projects

Unsettled advertising

payments 49375837.18 1007267.08 48368570.10

Total 3051502949.36 181496238.97 2870006710.39

(2) Amount and reason of significant change in the book value of the contractual assets in the

current year

Item Amount changed Causes of the Change

Accounts receivable from settled

but conditional payment projects 362837758.69 New engineering projects

Total 362837758.69

(3) Making for impairment provision of contractual assets in the current year

Amount

Provision made transferred back Write-off/VerifItem in the current

year in the

ication in the Reasons

current current year

year

Accounts The expected credit loss

receivable from is greater than the book

settled but 18025090.24 value of the current

conditional contract asset

payment projects impairment provision

The expected credit loss

is greater than the book

Unsettled 940405.67 value of the current

advertising contract asset

payments impairment provision

Total 18965495.91

10. Current Portion of Non-current Assets

Item Ending balance Beginning Nature

balance

Current portion of debt Entrusted loans for

investment 40000000.00 75000000.00 associated enterprises

Current portion of

long-term receivable 29003761.31 37310158.82 Finance leasing amount

Total 69003761.31 112310158.82

(1) Significant debt investment/other debt investment at the year end

Ending balance

Debt investment in

Par value Coupon Actualrate rate Expiry Date

Yibin OCT Sanjiang Real estate

Co. Ltd. 40000000.00 5.70% 5.70% 2021-10-24

Ending balance

Debt investment in

Par value Coupon Actualrate rate Expiry Date

Total 40000000.00

(Continued)

Beginning balance

Debt investment in

Par value Coupon Actualrate rate Expiry Date

Yibin OCT Sanjiang Real estate 2021/4/24

Co. Ltd. 35000000.00 5.70% 5.70%

Yibin OCT Sanjiang Real estate 2021/10/24

Co. Ltd. 40000000.00 5.70% 5.70%

Total 75000000.00

11. Other Current Assets

Item Ending balance Beginning balance

Prepayments and deductible taxes and 1003270717.12

refund of tax for export receivable 926643711.18

Principal of entrusted loans to joint ventures 1098703380.39 826684400.00

Temporary difference of input tax 119716769.30 148183307.23

Others 24210085.20 11635064.98

Total 2245900952.01 1913146483.39

12. Long-term Receivables

(1) List of Long-term Receivables

Ending balance

Item

Carrying amount Bad debtprovision Carrying value

Finance leasing amount 27613130.76 27613130.76

Of which: unrealized financing income 1169368.74 1169368.74

Cash deposits of long-term receivables 41090400.00 41090400.00

Long-term receivables of projects with

franchise tights 350937230.14 350937230.14

Less: Current portion of long-term

receivable 29003761.31 29003761.31

See Note VI. 10 for details)

Total 390636999.59 390636999.59

(Continued)

Beginning balance

Item

Carrying amount Bad debtprovision Carrying value

Finance leasing amount 44609921.40 44609921.40

Of which: unrealized financing

income 2526836.56 2526836.56

Cash deposits of long-term

receivables 41090400.00 41090400.00

Beginning balance

Item

Carrying amount Bad debtprovision Carrying value

Long-term receivables of

projects with franchise tights 351107041.45 351107041.45

Less: Current portion of

long-term receivable 37310158.82 37310158.82

See Note VI. 10 for details)

Total 399497204.03 399497204.03

(2) List of Projects with Franchise Rights

Item Type Project scale Franchise Date of Operatiorights contract n

PPP Project of Right of

water supply and charge for Partial

452802100.00

sewage Rushan PPP sewage July 2016 trial

Silver Beach disposal operation

(3) Changes in Long-term Receivables of Projects with Franchise Rights

Decreased

Item Initial invested Beginningamount balance Principal Other Ending balance

recover decrease

PPP Project of

water supply

and sewage 351107041.45 351107041.45 169811.31 350937230.14

Rushan Silver

Beach

Total 351107041.45 351107041.45 169811.31 350937230.14

13. Long-term Equity Investment

Change in the Current Period

Adjustm

ent to

Investee Beginning balance

New investment Investment Cost method to

Gain/loss other

reduced equity method recognized atequity method comprehensive

income

Konka Ventures Development (Shenzhen) Co.Ltd. 2250590.00 571291.00

Nanjing Zhihuiguang Information Technology

Research Institute Co. Ltd. 1573831.23 60003.31

Feide Technology (Shenzhen) Co. Ltd. 10671986.45 -318372.70

Shenzhen Kangyue Industrial Co. Ltd. 33146954.42 -446727.83

Foshan Pearl River Media Creative Park

Cultural Development Co. Ltd. 4900000.00 -308496.41

Shenzhen Konka Cross-Border Technological

Innovation Service Co. Ltd. 19020.00 -632.96

Chengdu Konka Incubator Management Co.Ltd. 254670.00 -74359.99

Dongguan Konka Smart Electronic

Technology Co. Ltd. 16172903.60 -929500.60

Puchuang Jiakang Technology Co. Ltd. 1399457.69 898750.07

Guoguang Ruilian (Shenzhen) Network

Technology Co. Ltd.Khorgos Yilingfang Information Technology

Co. Ltd. 1795.48 -1795.48

Chongqing Qingjia Electronic Co. Ltd. 18801653.84 -219255.91

Shenzhen Jielunte Technology Co. Ltd. 89187905.40 1975628.71

Change in the Current Period

Adjustm

ent to

Investee Beginning balance

New investment Investment Cost method to

Gain/loss other

reduced equity method recognized atequity method comprehensive

income

Panxu Intelligence Co. Ltd. 50704696.31 391349.14

Beijing Konka Jingyuan Technology Co. Ltd. 766290.97

Dongfang Jiahui (Zhuhai) Asset Management

Co. Ltd. 3027971.50 -307974.19

Orient Konka no.1 (zhuhai) private equity

investment fund (limited partnership) 336170619.84 43828800.00 34171344.83 -10322239.82

Tongxiang Wuzhen Kunyu Equity Investment

Co. Ltd. 3500000.00

Shenzhen Xiaorui Technology Co. Ltd. 53107714.82 -1135930.87

Weihai Water Environmental Protection

Technology Co. Ltd. 2526483.15 -1518.43

Weihai Yiheng Environmental Technology

Co. Ltd. 4812630.25 30224.08

Huoqiu Kangrun Kaitian Water Environmental

Protection Co. Ltd. 52434987.50 12435012.50 7497000.00

Huarun Environmental Protection Water

Treatment Co. Ltd. 17316442.28 391778.04

Binzhou Beihai Weiqiao Solid Waste

Treatment Co. Ltd. 182666028.25 17371700.00

Shandong Bishuiyuan Environmental

Technology Co. Ltd. 26390437.98 102188.81

Yunnan Hongkang Solid Waste Disposal

Utilization Co. Ltd. 2809775.13 -110373.99

Change in the Current Period

Adjustm

ent to

Investee Beginning balance

New investment Investment Cost method to

Gain/loss other

reduced equity method recognized atequity method comprehensive

income

Shandong Konka Zhijia Electrical Appliances

Co. Ltd. 2148063.47 -1245650.56

Henan Konka Zhijia Electrical Appliances

Co. Ltd. 1059137.34 130459.63

Anhui Kaikaishijie E-commerce Co. Ltd. 419065032.33

Wanjun Technology (Kunshan) Co. Ltd. 175204642.85 -2046465.83

Kunshan Kangsheng Investment Development

Co. Ltd. 269673264.00 32849354.55

Chutianlong Co. Ltd. 650206807.02 4824758.43

Heilongjiang Longkang Zhijia Technology

Co. Ltd. 1060725.79 -3709.66

Konka Green Konka Technology 75261304.56 75261304.56

Shaanxi Silu Yunqi Smart Technology Co.Ltd. 17649295.81 -1596222.64

Shenzhen Konka Information Network Co.Ltd.Shenzhen Zhongbing Konka Technology Co.Ltd. 2214307.33 -2214307.33

Shenzhen Konka Smart Electrical Appliance

Technology Co. Ltd. 3973386.95 -1441954.44

Shenzhen Bosheng New Material Co.Ltd. 58400000.00 -2064227.96

Shenzhen Yaode Technology Co. Ltd. 219357772.76 -4569192.27

Change in the Current Period

Adjustm

Investee Beginning balance Investment Cost method to Gain/loss

ent to

New investment reduced equity method recognized at

other

equity method comprehensive

income

Wuhan Tianyuan Environmental Protection

Co. Ltd. 304654243.69 13222348.47

Shenzhen Konka Yishijie Commercial Display

Co. Ltd. 81955858.27

Chuzhou Konka Technology Industry

Development Co. Ltd. 49658397.02 -1172317.71

Chuzhou Kangjin Healthcare Industry

Development Co. Ltd. 118122798.37 -6410036.65

Haimen Kangjian Technology Industrial Park

Operation and Management Co. Ltd. 120729335.67 -3070358.71

Chuzhou Kangxin Healthcare Industry

Development Co. Ltd. 187180000.00 -1310518.75

Dongguan Konka Investment Co. Ltd. 563500000.00 -12122313.26

Chongqing Konka Real Estate Development

Co. Ltd. 49500000.00 -7987220.86

Chongqing Chengda Real Estate Co. Ltd. 29205000.00 -303372.41

Yilifang (Hainan) Technology Co. Ltd. 58715678.97 3310556.06

Shenzhen Morsemi Technology Co. Ltd. 2723686.36 -217343.28

Chongqing Liangshan Enterprise Management

Co. Ltd. 50000.00

Shenzhen Kangpeng Digital Technology Co.Ltd. 6000000.00 -1063135.76

Shenzhen Kangene Technology Innovation 900000.00 808.91

Change in the Current Period

Adjustm

ent to

Investee Beginning balance

New investment Investment Cost method to

Gain/loss other

reduced equity method recognized atequity method comprehensive

income

Development Co. Ltd.Dalian Xinguan Technology Co. Ltd. 50000000.00 -1411462.01

Yantai Kangyun Industry Development Co.Ltd. 68185019.88 -78596.04

Chongqing Kangyiqing Technology Co. Ltd. 1000000.00

Sichuan Aimijiakang Technology Co. Ltd. 2000000.00

Guangdong Kangyuan Semiconductor Co.Ltd. 3214600.00 213202.98

Total 4375833584.65 119428412.50 109432649.39 68185019.88 19335816.88

(Continued)

Change in the Current Period

Closing balance

Investee Cash dividend orOther equity Impairment Ending balance of impairment

profit distribution Others

changes allowance provision

declared

Konka Ventures Development (Shenzhen) Co.Ltd. 2821881.00

Nanjing Zhihuiguang Information Technology

Research Institute Co. Ltd. 1633834.54

Feide Technology (Shenzhen) Co. Ltd. 10353613.75

Shenzhen Kangyue Industrial Co. Ltd. 32700226.59

Foshan Pearl River Media Creative Park

Cultural Development Co. Ltd. 4591503.59

Change in the Current Period

Closing balance

Investee Cash dividend orOther equity Impairment Ending balance of impairment

profit distribution Others

changes allowance provision

declared

Shenzhen Konka Cross-Border Technological

Innovation Service Co. Ltd. 18387.04

Chengdu Konka Incubator Management Co.Ltd. 180310.01

Dongguan Konka Smart Electronic

Technology Co. Ltd. 15243403.00

Puchuang Jiakang Technology Co. Ltd. 826052.90 1472154.86

Guoguang Ruilian (Shenzhen) Network

Technology Co. Ltd. 51964.09

Khorgos Yilingfang Information Technology

Co. Ltd.Chongqing Qingjia Electronic Co. Ltd. 18582397.93

Shenzhen Jielunte Technology Co. Ltd. 91163534.11

Panxu Intelligence Co. Ltd. 51096045.45

Beijing Konka Jingyuan Technology Co. Ltd. 766290.97

Dongfang Jiahui (Zhuhai) Asset Management

Co. Ltd. 2719997.31

Orient Konka no.1 (zhuhai) private equity

investment fund (limited partnership) 335505835.19

Tongxiang Wuzhen Kunyu Equity Investment

Co. Ltd. 3500000.00

Shenzhen Xiaorui Technology Co. Ltd. 51971783.95 33684243.40

Weihai Water Environmental Protection

Technology Co. Ltd. 2524964.72

Weihai Yiheng Environmental Technology 4842854.33

Change in the Current Period

Closing balance

Investee Cash dividend orOther equity Impairment Ending balance of impairment

profit distribution Others

changes allowance provision

declared

Co. Ltd.Huoqiu Kangrun Kaitian Water Environmental

Protection Co. Ltd. 72367000.00

Huarun Environmental Protection Water

Treatment Co. Ltd. 17708220.32

Binzhou Beihai Weiqiao Solid Waste

Treatment Co. Ltd. 200037728.25

Shandong Bishuiyuan Environmental

Technology Co. Ltd. 26492626.79

Yunnan Hongkang Solid Waste Disposal

Utilization Co. Ltd. 2699401.14

Shandong Konka Zhijia Electrical Appliances

Co. Ltd. 902412.91

Henan Konka Zhijia Electrical Appliances

Co. Ltd. 1189596.97

Anhui Kaikaishijie E-commerce Co. Ltd. 419065032.33

Wanjun Technology (Kunshan) Co. Ltd. 173158177.02

Kunshan Kangsheng Investment Development

Co. Ltd. 302522618.55

Chutianlong Co. Ltd. 6720000.00 648311565.45

Heilongjiang Longkang Zhijia Technology

Co. Ltd. 1057016.13 2470398.03

Konka Green Konka Technology

Shaanxi Silu Yunqi Smart Technology Co.Ltd. 16053073.17

Change in the Current Period

Closing balance

Investee Cash dividend orOther equity Impairment Ending balance of impairment

profit distribution Others

changes allowance provision

declared

Shenzhen Konka Information Network Co.Ltd. 12660222.73

Shenzhen Zhongbing Konka Technology Co.Ltd.Shenzhen Konka Smart Electrical Appliance

Technology Co. Ltd. 2531432.51

Shenzhen Bosheng New Material Co. Ltd. 56335772.04 18536771.07

Shenzhen Yaode Technology Co. Ltd. 214788580.49

Wuhan Tianyuan Environmental Protection

Co. Ltd. 317876592.16

Shenzhen Konka Yishijie Commercial Display

Co. Ltd. 81955858.27

Chuzhou Konka Technology Industry

Development Co. Ltd. 48486079.31

Chuzhou Kangjin Healthcare Industry

Development Co. Ltd. 111712761.72

Haimen Kangjian Technology Industrial Park

Operation and Management Co. Ltd. 117658976.96

Chuzhou Kangxin Healthcare Industry

Development Co. Ltd. 185869481.25

Dongguan Konka Investment Co. Ltd. 551377686.74

Chongqing Konka Real Estate Development

Co. Ltd. 41512779.14

Chongqing Chengda Real Estate Co. Ltd. 28901627.59

Yilifang (Hainan) Technology Co. Ltd. 62026235.03

Change in the Current Period

Closing balance

Investee Cash dividend orOther equity Impairment Ending balance of impairment

profit distribution Others

changes allowance provision

declared

Shenzhen Morsemi Technology Co. Ltd. 2506343.08

Chongqing Liangshan Enterprise Management

Co. Ltd. 50000.00

Shenzhen Kangpeng Digital Technology Co.Ltd. 4936864.24

Shenzhen Kangene Technology Innovation

Development Co. Ltd. 900808.91

Dalian Xinguan Technology Co. Ltd. 48588537.99

Yantai Kangyun Industry Development Co.Ltd. 68106423.84

Chongqing Kangyiqing Technology Co. Ltd. 1000000.00

Sichuan Aimijiakang Technology Co. Ltd. 2000000.00

Guangdong Kangyuan Semiconductor Co.Ltd. 3427802.98

Total 7546052.90 4465804131.62 67403599.32

14. Other Equity Instrument Investment

(1) Investment in non-trading equity instruments

Item Ending balance Beginning balance

Shenzhen Tianyilian Science & Technology Co. Ltd.Shenzhen Adopt Network Co. Ltd.AVO 5901121.80 5901121.80

Shaoyang Haishang Ecological Agricultural Technology 1501956.00 1501956.00

Co. Ltd.Feihong Electronics Co. Ltd.ZAEFI

Shenzhen Chuangce Investment Development Co. Ltd.Shanlian Information Technology Engineering Center 1860809.20 1860809.20

Shenzhen CIU Science & Technology Co. Ltd. 953000.00 953000.00

Shenzhen Digital TV National Engineering Laboratory Co. 7726405.16 7726405.16

Ltd.Shanghai National Engineering Research Center of Digital 2400000.00 2400000.00

TV Co. Ltd.Bohu UHD 5000001.00 5000001.00

Total 25343293.16 25343293.16

(2) Non-transactional Equity Instrument Investment

Amount of Reason for

Dividend

retained retained

income Reason for being designated to

Accum earnings earnings

recognize Accumulative be measured at fair value of

Item ulative transferred transferred

d in the loss which recorded in other

gain from other from other

current comprehensive income

comprehensiv comprehensive

period

e income income

4800000.00 Long-term holding based on

Shenzhen Tianyilian Science & Technology Co. Ltd.strategic purpose

5750000.00 Long-term holding based on

Shenzhen Adopt Network Co. Ltd.strategic purpose

98878.20 Long-term holding based on

AVO

strategic purpose

Shaoyang Haishang Ecological Agricultural Long-term holding based on

Technology Co. Ltd. strategic purpose

Long-term holding based on

Feihong Electronics Co. Ltd. 1300000.00

strategic purpose

Long-term holding based on

ZAEFI 100000.00

strategic purpose

Shenzhen Chuangce Investment Development Co. Long-term holding based on

485000.00

Ltd. strategic purpose

Shanlian Information Technology Engineering Long-term holding based on

3139190.80

Center strategic purpose

Long-term holding based on

Shenzhen CIU Science & Technology Co. Ltd. 200000.00

strategic purpose

Shenzhen Digital TV National Engineering Long-term holding based on

1273594.84

Laboratory Co. Ltd. strategic purpose

Shanghai National Engineering Research Center of Long-term holding based on

Digital TV Co. Ltd. strategic purpose

Bohu UHD Long-term holding based on

Amount of Reason for

Dividend

retained retained

income Reason for being designated to

Accum earnings earnings

recognize Accumulative be measured at fair value of

Item ulative transferred transferred

d in the loss which recorded in other

gain from other from other

current comprehensive income

comprehensiv comprehensive

period

e income income

strategic purpose

Total 17146663.84

15. Other Non-current Financial Assets

Item Ending balance Beginning balance

China Asset Management-Jiayi Overseas Designated Plan 203000000.00 203000000.00

Hunan Wanrong Technology Co. Ltd. 47230000.00

Yibin OCT Sanjiang Property Co. Ltd. 200000000.00 200000000.00

Yili Ecological Restoration Co. Ltd. 90000000.00 90000000.00

Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership 43805874.28

(Limited Partnership) 13028268.90

Shenzhen Kanghong Dongsheng Investment Partnership (Limited 33559302.86

Partnership) 17754800.00

Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment 120000000.00

Partnership (Limited Partnership) 40000000.00

Yibin Kanghui Electronic Information Industry Equity Investment 4000000.00

Partnership (Limited Partnership) 4000000.00

Chuzhou Jiachen Information Technology Consulting Service Partnership 49200000.00

(Limited Partnership) 49200000.00

Yancheng Kangyan Information Industry Investment Partnership (Limited 81167900.00

Partnership) 1050000.00

Chongqing Kangxin Equity Investment Fund Limited Partnership 5000000.00

(Limited Partnership)

Subtotal of equity investments 829733077.14 665263068.90

Chuzhou Huike Smart Household Appliances Industry Investment 1019230815.89

Partnership (Limited Partnership) 1049891727.86

Ningbo Yuanqing No. 9 Investment Partnership 134671492.89 98000000.00

Shenzhen Beihu Technology Partnership (Limited Partnership) 58000000.00 65000000.00

Subtotal of debt investments 1211902308.78 1212891727.86

Total 2041635385.92 1878154796.76

16. Investment Property

(1) Investment properties measured at cost

Item Plant & buildings and land use right

I. Original carrying value

1. Beginning balance 600562678.71

2. Increase in the period 46308273.16

(1) Outsourcing

(2) Fixed assets\Construction in progress\Transfer of

46308273.16

intangible assets

3. Decrease in the period 60197571.56

(1) Disposal

(2) Other transfer out 60197571.56

4. Ending balance 586673380.31

II. The accumulative depreciation and accumulative

amortization

1. Beginning balance 61977010.42

2. Increase in the period 7097224.27

Item Plant & buildings and land use right

(1) Provision or amortization 7097224.27

3. Decrease in the period

(1) Disposal

(2) Other transfer out

4. Ending balance 69074234.69

III. Depreciation reserves

1. Beginning balance

2. Increase in the period

(1) Withdrawal

3. Decrease in the period

(1) Disposal

4. Ending balance

IV. Carrying value

1. Ending carrying value 517599145.62

2. Beginning carrying value 538585668.29

Note: The increase of investment real estate in the current period is mainly due to the Konka

Yibin Industrial Park and Konka Yantai Industrial Park.

(2) Investment properties measured at fair value

There were no investment properties measured at fair value of the Company.

(3) Investment properties in the process of title certificate handling

Item Carrying value Reason

Konka Yibin Industrial Park 144589955.57

Incorporation and under

processing

38753062.88 Incorporation and underKonka Yantai Industrial Park processing

Total 183343018.45

17. Fixed assets

Item Ending carrying value Beginning carrying value

Fixed Assets 3355378019.70 3178642017.84

Fixed assets pending for

disposal

Total 3355378019.70 3178642017.84

(1) List of Fixed Assets

Houses and Transportation

Item Mechanical equipment Electronic equipment Other equipment Total

buildings equipment

I. Original carrying value

1. Beginning balance 1885131717.55 2691194912.55 206926929.73 64942921.83 298050533.07 5146247014.73

2. Increased amount of the 241729370.77 176521453.22 9374827.99 3240495.06 16111111.36 446977258.40

period

(1) Purchase 3750493.22 20712938.66 9374827.99 3240495.06 14807369.41 51886124.34

(2) Transfer of construction 237978877.55 155808514.56 1303741.95 395091134.06

in progress

(3) Transfer of investment

property

3. Decreased amount of the

47484848.64 169743139.85 1401154.46 3590532.85 2339699.51 224559375.31

period

(1) Disposal or Scrap 2203045.83 6046941.58 1401154.46 3590532.85 2339699.51 15581374.23

(2) Decrease for loss of

controlling right

(3) Transfer to investment

45281802.81 45281802.81

property

(4) Decrease for other

163696198.27 163696198.27

reasons

4. Ending balance 2079376239.68 2697973225.92 214900603.26 64592884.04 311821944.92 5368664897.82

II. Accumulative

depreciation

1. Beginning balance 501722343.90 1044306408.80 148018198.44 43570055.60 160664350.97 1898281357.71

2. Increased amount of the 36658487.94 108910156.14 10794355.24 4122025.48 15348947.22 175833972.02

period

(1) Withdrawal 36658487.94 108910156.14 10794355.24 4122025.48 15348947.22 175833972.02

Houses and Transportation

Item Mechanical equipment Electronic equipment Other equipment Total

buildings equipment

(2) Transfer of investment

property

3. Decreased amount of the 1169586.01 123765723.85 1324043.18 2777160.80 1107152.26 130143666.10

period

(1) Disposal or Scrap 1151989.06 3287743.04 1324043.18 2777160.80 1107152.26 9648088.34

(2) Decrease for loss of

controlling right

(3) Transfer to investment

17596.95 17596.95

property

(4) Decrease for other 120477980.81 120477980.81

reasons

4. Ending balance 537211245.83 1029450841.09 157488510.50 44914920.28 174906145.93 1943971663.63

III. Depreciation reserves

1. Beginning balance 1247805.91 64440684.26 1221230.02 820215.24 1593703.75 69323639.18

2. Increased amount of the

period

(1) Withdrawal

3. Decreased amount of the

7764.50 660.19 8424.69

period

(1) Disposal or Scrap 7764.50 660.19 8424.69

4. Ending balance 1247805.91 64440684.26 1213465.52 820215.24 1593043.56 69315214.49

IV. Carrying value

1. Ending carrying value 1540917187.94 1604081700.57 56198627.24 18857748.52 135322755.43 3355378019.70

2. Beginning carrying value 1382161567.74 1582447819.49 57687501.27 20552650.99 135792478.35 3178642017.84

(2) List of Temporarily Idle Fixed Assets

Item Original Accumulative Impairment Carrying valuecarrying value depreciation provision

Mechanical

equipment 15727901.88 4847429.03 1933845.35 8946627.50

Electronic

equipment 1959751.03 1574316.87 385434.16

Transportation

equipment 918103.44 399375.00 518728.44

Other equipment 1795007.22 1593299.03 26675.22 175032.97

Total 20400763.57 8414419.93 1960520.57 10025823.07

(3) Fixed Assets Leased out from Operation Lease

Item Ending carrying value

Mechanical equipment 16856106.31

Transportation vehicles and electronic equipment 147827.32

Total 17003933.63

(4) Details of Fixed Assets Failed to Accomplish Certification of Property

Imp

Original Accumulative airmItem Net carryingcarrying value depreciation entprov value

Reason

ision

New

Konka Yibin

Industrial Park 78686299.55 742842.69 77943456.86

construction

with pending

certificate

Yikang

Building 76610752.33 37766687.72 38844064.61 Historical

property reasons

Jingyuan

Building 20018497.00 9770559.01 10247937.99 Historical

property reasons

Longzhimeng

Pangjiang

Street Property 6072572.34 1097627.05 4974945.29 Under

in Dadong processing

District

Shenyang

Purification

tank for liquid

waste of 2653000.00 1542056.25 1110943.75 Under

XingDa processing

HongYe

Total 184041121.22 50919772.72 133121348.50164

(5) Fixed Assets with Restricted Ownership or Use Right

Item Ending carryingvalue Reasons

Housing and buildings of Anhui

Tongchuang 152555215.06 Mortgage borrowings

Machinery equipment of Jiangxi

Konka 125466230.01 Finance lease mortgage

Machinery equipment of Xinfeng

Microcrystalline 125505890.56 Finance lease mortgage

Housing and buildings of Frestec

Refrigeration 92281884.82 Finance lease mortgage

Buildings of Konka Group 71008186.14 Mortgage borrowings

Housing and buildings of XingDa

HongYe 39196058.38 Mortgage borrowings

Machinery equipment of Xingda

Hongye 22632718.61 Finance lease mortgage

Machinery equipment of Boluo

Konka Precision 11917835.51 Finance lease mortgage

Factories of Boluo Konka 1292009.75 Mortgage borrowings

Buildings of Jiangxi Konka As collateral for former shareholder’s3470635.83 guarantee

Smart machinery equipment and

other equipment of Jiangsu Konka 42136390.95

Mortgage borrowings

Total 687463055.62

18. Construction in Progress

Item Ending balance Beginning balance

Construction in Progress 10099450528.06 9236643931.68

Total 10099450528.06 9236643931.68

18.1 Construction in progress

(1) List of Construction in Progress

Ending balance Beginning balance

Carrying amount Impa Carrying value Carrying amount Impai Carrying value

Item irme rment

nt provis

provi ion

sion

Comprehensive improvement engineering project of

drainage basins in the city of Donggang 992181212.43 992181212.43 878298840.85 878298840.85

Central City Comprehensive accelerated programs in

Economic and Technological Development Zone of 1053704078.58 1053704078.58 854403424.70 854403424.70

Binhai Weifang

Sewage treatment and water environment project in

Ankang County 737489434.58 737489434.58 736291181.05 736291181.05

PPP Project of Lushan Shahe Ecological

Rehabilitation and Improvement (Phase I) 717639485.24 717639485.24 712003094.27 712003094.27

PPP Project of Funan Sewage Treatment 742364507.22 742364507.22 698546462.73 698546462.73

Comprehensive water environment improvement

project in Mengcheng County Anhui Province 703684828.74 703684828.74 693071428.99 693071428.99

Water supply engineering project in Mazongshan

Town Subei Mongol Autonomous County Gansu 715921467.23 715921467.23 651327229.42 651327229.42

Province

Integrated PPP Project of Huangpi Sewage Treatment 582540387.79 582540387.79 566856746.38 566856746.38

Ankang Smart Plant 384553302.39 384553302.39 549848298.86 549848298.86

The second line of Jiangxi Nano Crystallized Glass 330813294.31 330813294.31 317578212.72 317578212.72

Dayi Project 448416794.95 448416794.95 315363263.81 315363263.81

Phase I of ecological restoration and protection of

Danhe River Basin in Gaoping City 352496648.43 352496648.43 294709246.41 294709246.41

Ending balance Beginning balance

Carrying amount Impa Carrying value Carrying amount Impai Carrying value

Item irme rment

nt provis

provi ion

sion

Water environment improvement project in downtown

Chongzhou 267527695.92 267527695.92 265143141.30 265143141.30

Tongchuan Project 198130237.44 198130237.44 188185801.03 188185801.03

The second sewage plant of Laizhou 204264290.24 204264290.24 185205457.46 185205457.46

Construction of Suining Electronic Industrial Park

Workshops 225609993.83 225609993.83 170314313.43 170314313.43

Franchise project of disposal of kitchen waste in

Gaoling Xi'an 215967649.86 215967649.86 159947876.21 159947876.21

Water supply and water resources development

project in Changning 45443426.54 45443426.54 129766743.81 129766743.81

R&D equipment construction project of Chongqing

Optoelectronic Research Institute 170072455.78 170072455.78 129657635.39 129657635.39

Phase II of Rural Residential Environment

Improvement and Reconstruction Project (domestic 140329311.33 140329311.33 122764816.91 122764816.91

sewage treatment) in Qinhan New Town

Infrastructure Project of Chongqing Konka

Semiconductor Optoelectronics Research Institute 95823834.96 95823834.96 63294064.44 63294064.44

(Part I and Part II)

Other projects 774476190.27 774476190.27 554066651.51 554066651.51

Total 10099450528.06 10099450528.06 9236643931.68 9236643931.68

(2) Changes of Significant Construction in Progress

Name of item Beginning balance Increased Decreased Ending balance

Transferred

Other

to long-term

decrease

assets

Comprehensive improvement engineering project of

drainage basins in the city of Donggang 878298840.85 113882371.58 992181212.43

Central City Comprehensive accelerated programs in

Economic and Technological Development Zone of 854403424.70 199300653.88 1053704078.58

Binhai Weifang

Sewage treatment and water environment project in

Ankang County 736291181.05 1198253.53 737489434.58

PPP Project of Lushan Shahe Ecological

Rehabilitation and Improvement (Phase I) 712003094.27 5636390.97 717639485.24

PPP Project of Funan Sewage Treatment 698546462.73 43818044.49 742364507.22

Comprehensive water environment improvement

project in Mengcheng County Anhui Province 693071428.99 10613399.75 703684828.74

Water supply engineering project in Mazongshan

Town Subei Mongol Autonomous County Gansu 651327229.42 64594237.81 715921467.23

Province

Integrated PPP Project of Huangpi Sewage Treatment 566856746.38 15683641.41 582540387.79

Ankang Smart Plant 549848298.86 31599406.73 196894403.20 384553302.39

The second line of Jiangxi Nano Crystallized Glass 317578212.72 13235081.59 330813294.31

Dayi Project 315363263.81 133053531.14 448416794.95

Phase I of ecological restoration and protection of

Danhe River Basin in Gaoping City 294709246.41 57787402.02 352496648.43

Water environment improvement project in downtown

Chongzhou 265143141.30 2384554.62 267527695.92

Tongchuan Project 188185801.03 9944436.41 198130237.44

The second sewage plant of Laizhou 185205457.46 19058832.78 204264290.24

Decreased

Name of item Beginning balance Increased Transferred Other Ending balance

to long-term

decrease

assets

Construction of Suining Electronic Industrial Park

Workshops 170314313.43 55295680.40 225609993.83

Franchise project of disposal of kitchen waste in

Gaoling Xi'an 159947876.21 56019773.65 215967649.86

Water supply and water resources development project

in Changning 129766743.81 2840412.98 87163730.25 45443426.54

R&D equipment construction project of Chongqing

Optoelectronic Research Institute 129657635.39 40414820.39 170072455.78

Phase II of Rural Residential Environment

Improvement and Reconstruction Project (domestic 122764816.91 17564494.42 140329311.33

sewage treatment) in Qinhan New Town

Infrastructure Project of Chongqing Konka

Semiconductor Optoelectronics Research Institute 63294064.44 32529770.52 95823834.96

(Part I and Part II)

Other projects 554066651.51 270809514.32 50399975.56 774476190.27

Total 9236643931.68 1197264705.39 334458109.01 10099450528.06

(Continued)

Estimate Proportion Engineerin Of which: the Capitalization

d estimated of the Accumulative amount of the rate of the

Name of item number project g amount of capitalized interests of Capital resources

(RMB10 accumulative Schedule capitalized interests interests of the the period

0 million) input (%) (%) period (%)

Comprehensive improvement

Self-owned fund and

engineering project of drainage basins 12.99 76.38 76.38 87331493.01 17873302.21 4.90

bank financing

in the city of Donggang

Estimate Proportion Engineerin Of which: the Capitalization

d estimated of the Accumulative amount of the rate of the

Name of item number project g amount of capitalized interests of Capital resources

(RMB10 accumulative Schedule capitalized interests interests of the the period

0 million) input (%) (%) period (%)

Central City Comprehensive

accelerated programs in Economic and Self-owned fund and

16.50 63.86 63.86 38509281.25 16433639.59 4.95

Technological Development Zone of bank financing

Binhai Weifang

Sewage treatment and water

22.41 32.91 32.91 Self-owned fund

environment project in Ankang County

PPP Project of Lushan Shahe

Self-owned fund and

Ecological Rehabilitation and 12.68 56.61 56.61 2015000.00 2015000.00 4.65

bank financing

Improvement (Phase I)

PPP Project of Funan Sewage Self-owned fund and

9.72 76.35 76.35 36934940.97 11073562.50 4.80

Treatment bank financing

Comprehensive water environment

Self-owned fund and

improvement project in Mengcheng 15.93 44.16 44.16 2757333.33 2757333.33 4.70

bank financing

County Anhui Province

Water supply engineering project in

Self-owned fund and

Mazongshan Town Subei Mongol 9.70 73.80 73.80 38777592.79 18148861.54 5.24

bank financing

Autonomous County Gansu Province

Integrated PPP Project of Huangpi Self-owned fund and

7.38 78.89 78.89 24202231.56 9770644.06 4.34

Sewage Treatment bank financing

Ankang Smart Plant Self-owned fund and

9.56 60.82 60.82 5944374.97 5944374.97 4.85

bank financing

The second line of Jiangxi Nano Self-owned fund and

3.92 84.36 84.36 11751563.31 5676528.03 4.90

Crystallized Glass bank financing

Estimate Proportion Engineerin Of which: the Capitalization

d estimated of the Accumulative amount of the rate of the

Name of item number project g amount of capitalized interests of Capital resources

(RMB10 accumulative Schedule capitalized interests interests of the the period

0 million) input (%) (%) period (%)

Dayi Project 8.93 50.23 50.23 Self-owned fund

Phase I of ecological restoration and

protection of Danhe River Basin in 8.82 39.95 39.95 Self-owned fund

Gaoping City

Water environment improvement

3.93 68.07 68.07 Self-owned fund

project in downtown Chongzhou

Tongchuan Project Self-owned fund and

2.56 77.29 77.29 9181614.95 3893221.38 5.07

bank financing

The second sewage plant of Laizhou 6.90 29.98 29.98 Self-owned fund

Construction of Suining Electronic Self-owned fund and

2.46 91.82 91.82 3696036.17 3696036.17 4.45

Industrial Park Workshops bank financing

Franchise project of disposal of kitchen

5.57 38.76 38.76 Self-owned fund

waste in Gaoling Xi'an

Water supply and water resources

7.08 77.23 77.23 Self-owned fund

development project in Changning

R&D equipment construction project

of Chongqing Optoelectronic Research 7.99 21.29 21.29 Self-owned fund

Institute

Phase II of Rural Residential

Environment Improvement and

Self-owned fund and

Reconstruction Project (domestic 5.32 26.54 26.54 1382180.32 63583.18 7.90

project financing

sewage treatment) in Qinhan New

Town

Estimate Proportion Engineerin Of which: the Capitalization

d estimated of the Accumulative amount of the rate of the

Name of item number project g amount of capitalized interests of Capital resources

(RMB10 accumulative Schedule capitalized interests interests of the the period

0 million) input (%) (%) period (%)

Infrastructure Project of Chongqing

Konka Semiconductor Optoelectronics 4.86 19.73 19.73 Self-owned fund

Research Institute (Part I and Part II)

Self-owned fund and

Other projects 71479797.02

finance lease

Total 333963439.65 97346086.96

19. Right-of-Use Assets

Item Houses and buildings Equipment Total

I. Original carrying value

1. Beginning balance 103006581.18 832266.36 103838847.54

2. Increased amount of the period 10321403.56 10321403.56

(1) Increased leases 10321403.56 10321403.56

3. Decreased amount of the period 41026.46 41026.46

(1) Other 41026.46 41026.46

4. Ending balance 113286958.28 832266.36 114119224.64

II. Accumulated depreciation

1. Beginning balance

2. Increased amount of the period 22114939.47 282262.14 22397201.61

(1) Withdrawal 22114939.47 282262.14 22397201.61

Item Houses and buildings Equipment Total

3. Decreased amount of the period

(1) Disposal

4. Ending balance 22114939.47 282262.14 22397201.61

III. Depreciation reserves

1. Beginning balance

2. Increased amount of the period

3. Decreased amount of the period

4. Ending balance

IV. Carrying value

1. Ending carrying value 91172018.81 550004.22 91722023.03

2. Beginning carrying value 103006581.18 832266.36 103838847.54

20. Intangible Assets

(1) List of intangible assets

Intellectual property

Item Land use right Right to usePatent and Total

Trademark right Franchise rights software and Subtotal

know-how

others

I. Original carrying value

1. Beginning balance 1046826764.13 75487617.43 102532417.78 106571344.10 118345808.42 402937187.73 1449763951.86

2. Increased amount of

53170488.73 5496855.24 5496855.24 58667343.97

the period

(1) Purchase 35677288.49 3811038.58 3811038.58 39488327.07

Intellectual property

Item Land use right Right to usePatent and Total

Trademark right Franchise rights software and Subtotal

know-how

others

(2) Transfer of

17493200.24 1685816.66 1685816.66 19179016.90

construction in progress

(3) Internal R&D

(4) Transfer from

investment property

3. Decreased amount of

39701907.35 39701907.35

the period

(1) Disposal

(2) Decrease for loss of

28704000.00 28704000.00

controlling right

(3) Decrease in

transfer-in of investment 10997907.35 10997907.35

real estate

4. Ending balance 1060295345.51 75487617.43 102532417.78 106571344.10 123842663.66 408434042.97 1468729388.48

II. Accumulated

- -

amortization

1. Beginning balance 98643099.35 5272452.95 82831515.87 15547087.50 55377712.07 159028768.39 257671867.74

2. Increased amount of

15375782.10 277.78 13151025.27 2221012.50 7958889.76 23331205.31 38706987.41

the period

(1) Withdrawal 15375782.10 277.78 13151025.27 2221012.50 7958889.76 23331205.31 38706987.41

(2) Other increases

3. Decreased amount of

542341.98 542341.98

the period

Intellectual property

Item Land use right Right to usePatent and Total

Trademark right Franchise rights software and Subtotal

know-how

others

(1) Disposal

(2) Decrease for loss of

controlling right

(3) Decrease in

transfer-in of investment 542341.98 542341.98

real estate

4. Ending balance 113476539.47 5272730.73 95982541.14 17768100.00 63336601.83 182359973.70 295836513.17

III. Depreciation reserves

1. Beginning balance 2901082.61 2901082.61 2901082.61

2. Increased amount of

the period

(1) Withdrawal

(2) Increase for business

combination

3. Decreased amount of

the period

(1) Disposal

(2) Decrease for loss of

controlling right

4. Ending balance 2901082.61 2901082.61 2901082.61

IV. Carrying value

1. Ending carrying value 946818806.04 70214886.70 3648794.03 88803244.10 60506061.83 223172986.66 1169991792.70

Intellectual property

Item Land use right Right to usePatent and Total

Trademark right Franchise rights software and Subtotal

know-how

others

2. Beginning carrying

948183664.78 70215164.48 16799819.30 91024256.60 62968096.35 241007336.73 1189191001.51

value

(2) Land Use Right with Certificate of Title Uncompleted

Item Carrying value Reason

Land usage right of the subsidiary

Jiangxi High Transparent Substrate 5181396.68 Under processing

Total 5181396.68

(3) Significant Intangible Assets

Item Ending carrying value Remaining amortizationperiod (year)

Land usage right of Fenggang Konka

Intelligent Industrial Park 196005772.67 48.17

Frestec Zhijia land use right 95059550.03 49.25

Franchise rights of sewage treatment in

Laizhou 93282525.01 21.00

Land usage right of Chongqing Konka 61154286.34 48.17

Land usage right of Frestec 68713717.81 35.25

Land usage right of Huanjia (Henan) 65215488.08 48.00

Land usage right of Anhui Konka 2 #

land 55369010.66 47.42

Land usage right of Liaoyang Kangshun 35200836.96 49.67

Land usage right of Anhui Konka 3#

land 19011338.67 47.33

Total 689012526.23

(5) Intangible Assets with restricted ownership or using right

Item Ending carrying value Reasons

Land usage right of Frestec 68713717.81 Finance lease mortgage

Land usage right of Anhui Konka 2 #

land 55369010.66 As collateral for loan

Land use right of Anhui Tongchuang 18676491.11 As collateral for loan

Land usage right of XingDa HongYe 14283458.30 As collateral for loan

Yikang technology patents and

know-how 9000000.00 Finance lease mortgage

Land usage right of Jiangxi Konka Original shareholder guarantee10390478.17 mortgage

Land use right of Kangjia in Yibin 4678863.20 As collateral for loan

Land use right of Konka Guangming 5220441.48 As collateral for loan

Land use right of Jiangsu Konka Smart 14924162.24 As collateral for loan

Land use right of Dongguan Konka 196005772.67 As collateral for loan

Total 397262395.64

21. Development expenditures

Item Beginning Increased Decreased Ending

balance balance

Amount Transferred

Expenditure recognized into current

of internal as profit or loss

development intangible

assets

Performance

improvement

57745.03 57745.03

project of Mini &

Micro LED

Total 57745.03 57745.03

22. Goodwill

(1) Original Carrying Value of Goodwill

Increased Decreased

Formed

Name of

from

the Beginning balance Other Othe Ending balance

business Dispose

investees s rs

combinatio

n

Econ

467825151.34 467825151.34

Technology

Jiangxi

340111933.01 340111933.01

Konka

XingDa

44156682.25 44156682.25

HongYe

Total 852093766.60 852093766.60

(2) Provisions for Goodwill Impairment

Name of Increased Decreased

the Beginning balance Othe Other Ending balance

Withdrawal Dispose

investees rs s

Econ

Technology

Jiangxi

154337946.29 154337946.29

Konka

XingDa

21959947.14 21959947.14

HongYe

Total 176297893.43 176297893.43

(3) Relevant information on the asset group or combination of asset groups where goodwill is

located

The asset group or combination of asset groups in which the goodwill is located is the

composition of all main business operating tangible assets and identifiable intangible assets

(excluding working capital and non-operating assets) reflected in the balance sheet of the

corresponding subsidiary and related to goodwill Asset group. As of 30 June 2021 there were no

specific signs of impairment during the reporting period and no provision for impairment was

required.23. Long-term Deferred Expenses

Other

Beginning Amortization

Item Increased decreased Ending balance

balance amount

amount

Renovation 92922237.45 90568588.76 19262238.30 794221.31 163434366.60

Other

Beginning Amortization

Item Increased decreased Ending balance

balance amount

amount

costs

Shoppe

expense 24678629.46 5827040.99 9806693.49 31092.74 20667884.22

Others 35597695.91 8160094.22 14914382.96 28843407.17

Total 153198562.82 104555723.97 43983314.75 825314.05 212945657.99

24. Deferred Income Tax Assets/Deferred Income Tax Liabilities

(1) Deferred Income Tax Assets without Offset

Ending balance Beginning balance

Item Deductible Deferred income Deductible Deferred income

temporary tax liabilities temporary tax liabilities

difference assets difference assets

Deductible

losses 4384823983.52 945470014.66 3454342497.93 765781935.91

Assets

impairment 1672761604.43 357408076.44 1672345584.63 355173623.87

provision

Deferred

Income 52695094.43 12741367.26 302984312.52 75408820.37

Accrued

expenses 133171310.14 25777071.72 206844865.32 40844897.61

Unrealized

internal sales 30988823.87 7747208.22 37257399.14 9068649.87

profits

Others 88802295.75 19113367.24 90902865.84 19638509.76

Total 6363243112.14 1368257105.54 5764677525.38 1265916437.39

(2) Lists of Deferred Income Tax Liabilities without Offset

Ending balance Beginning balance

Item Taxable Deferred income Deferred incomeTaxable temporary

temporary tax liabilities difference tax liabilities

difference Liability Liability

Estimated added

value of assets not

278070394.09 52902937.13 303689567.68 57097842.23

under the same

control

Prepaid interest 56730324.55 13878051.00 48578683.63 11840140.77

Accelerated

depreciation of 5796848.51 1298287.13 4443598.64 959974.66

fixed assets

Others 14293237.28 2124097.19 27585930.42 5921274.27

Total 354890804.43 70203372.45 384297780.37 75819231.93

(3) List of Unrecognized Deferred Income Tax Assets

Item Ending balance Beginning balance

Deductible losses 1688694412.44 1526406964.50

Deductible temporary difference 790183337.45 766691485.59

Total 2478877749.89 2293098450.09

25. Other Non-current Assets

Ending balance

Item

Carrying amount Impairmentprovision Carrying value

Prepayment for land-purchase 1180082994.42 1180082994.42

Prepaid amount for engineering

equipment and other long-term assets 31451170.53 31451170.53

Entrusted loans 11225866.61 11225866.61

Construction of government projects 23463565.16 23463565.16

Total 1246223596.72 1246223596.72

(Continued)

Beginning balance

Item

Carrying amount Impairmentprovision Carrying value

Prepayment for land-purchase 1538728032.15 1538728032.15

Prepaid amount for engineering

equipment and other long-term assets 247719684.59 247719684.59

Entrusted loans 10867888.84 10867888.84

Construction of government projects 23463565.16 23463565.16

Total 1820779170.74 1820779170.74

26. Short-term Borrowings

Item Ending balance Beginning balance Description

Unsecured borrowings 8111519817.09 7164301258.30

Borrowings secured by

1799773111.57 2038705892.75 ①②③④

guarantee

Borrowings secured by

749035591.34 1787543324.73 ⑤⑥⑦⑧⑨⑩??

collateral

Total 10660328520.00 10990550475.78

Notes: a) The Company provides joint and several liability guarantee for its subsidiaries Anhui

Konka Anhui Tongchuang Pengrun Technology Ningbo Kanghanrui Electric Appliance Hong

Kong Konka Sichuan Konka Econ Technology Jiangxi Konka Jiangxi High-permeability

Substrate and Xinfeng Microcrystalline Jade in terms of the short-term borrowings totaling

RMB1230200628.56.b) The Company has obtained short-term borrowings totaling RMB500000000.00 from China

Everbright Bank Co. Ltd. Chegongmiao Sub-branch for which Shenzhen Konka Electronic

Technology Co. Ltd. (a subsidiary of the Company) provides joint and several liability guarantee

at the maximum amount.c) Konka Chuangtou (a subsidiary of the Company) has obtained short-term borrowings totaling

RMB7250000.00 from the Bank of Hangzhou Co. Ltd. Shenzhen Keji Sub-branch for which

Shenzhen SME Financing Guarantee Co. Ltd. and Shenzhen High-tech Investment and

Financing Guarantee Co. Ltd. both provide guarantee.d) Econ Technology (a subsidiary of the Company) has obtained short-term borrowings totaling

RMB62322483.01 from the Industrial Bank Co. Ltd. Yantai Development Zone Sub-branch for

which the Company provides joint and several liability guarantee at the maximum amount.e) The Company has obtained short-term borrowings totaling RMB347135000.00 from

Shenzhen Branch China Zheshang Bank Co. Ltd. with the Company's bank deposits amounting

to RMB47140000.00 as pledge.f) The Company has obtained short-term borrowings totaling USD6552788.00 (equivalent to

RMB42331665.76) from the Agricultural Bank of China Co. Ltd. Haqiaocheng Sub-branch

with a certificate of time deposit amounting to USD6548221.08 as pledge.g) Anhui Konka (a subsidiary of the Company) has obtained short-term borrowings totaling

RMB150000000.00 from Chuzhou Branch Bank of China Limited with a land use right worth

RMB55369010.66 (book value) and the construction in progress worth RMB317974560.85 as

pledge for which the Company provides joint and several liability guarantee.h) Anhui Tongchang (a subsidiary of the Company) has obtained short-term borrowings totaling

RMB78000000.00 from Hefei Branch China Zheshang Bank Co. Ltd. with a building worth

RMB152555215.06 (book value) and a land use right worth RMB18676491.11 as pledge.i) Bokang Precision Electronics (a subsidiary of the Company) has obtained short-term

borrowings totaling RMB5000000.00 from Guangdong Boluo Rural Commercial Bank Co. Ltd.Tangquan Sub-branch with a building of Boluo Konka worth RMB1292009.75 (book value) as

pledge.j) Jiangsu Kangjia Intelligent Electric Appliance (a subsidiary of the Company) has obtained

short-term borrowings totaling RMB30000000.00 from China Zheshang Bank Co. Ltd.Changzhou Wujin Sub-branch with a building worth RMB42136390.95 (book value) and a land

use right worth RMB14924162.24 as pledge.k) Shanghai Konka (a subsidiary of the Company) has obtained short-term borrowings totaling

1568925.58 from Yantai Rural Commercial Bank Co. Ltd. with an investment property worth

10882570.03 in Yantai Konka Mega-Health Industrial Park as pledge.l) Xingda Hongye (a subsidiary of the Company) has obtained short-term borrowings totaling

95000000.00 from Zhongshan Rural Commercial Bank Co. Ltd. with a certificate of time

deposit amounting to RMB19800000.00 (book value) a building worth RMB39196058.38 and

a land use right worth RMB14283458.30 as pledge for which Hu Zehong provides joint and

several liability guarantee.27. Notes Payable

Category Ending balance Beginning balance

Bank’s acceptance bill 932200721.04 1159251569.31

Commercial acceptance bill 151826838.52 176735456.90

Total 1084027559.56 1335987026.21

28. Accounts Payable

(1) List of Accounts Payable

Item Ending balance Beginning balance

Within 1 year 8606110762.20 8134924659.58

1 to 2 years 1054960597.01 1279766515.39

2 to 3 years 60512729.21 87184184.40

Over 3 years 120970653.90 130490966.39

Total 9842554742.32 9632366325.76

(2) Significant Accounts Payable Aging over One Year

Item Ending balance Unpaid/Un-carry-overreason

Hunan Fifth Engineering Co. 589525468.50 Not meet the settlement

Ltd conditions

China Railway No. 4 243280667.40 Not meet the settlement

Engineering Group Co. Ltd. conditions

Chongqing Jiulong Kuiguan 112851020.43 Not meet the settlement

Building Materials Co. Ltd. conditions

Henan Yaofeng Industrial Co. 98891330.28 Not meet the settlement

Ltd. conditions

Rushan Water Group Co. Ltd. 96558100.00 Not meet the settlementconditions

Total 1141106586.61 —

29. Contractual liabilities

(1) Details of Contractual liabilities

Item Ending balance Beginning balance

Sales advances received 809414528.15 1217367735.94

Total 809414528.15 1217367735.94

(2) There is no significant change in carrying value of contractual liabilities in the current period

30. Payroll Payable

(1) List of Payroll Payable

Item Beginning Increased Decreased Ending balance

balance

List of Short-term Salary 473200796.84 715153156.86 958964772.15 229389181.55

Post-employment

benefit-defined contribution 2283275.82 62184560.57 63705222.00 762614.39

plans

Termination benefits 1132171.79 5409163.52 5507213.52 1034121.79

Current portion of other

benefits

Total 476616244.45 782746880.95 1028177207.67 231185917.73

(2) List of Short-term Salary

Beginning

Item Increased Decreased Ending balance

balance

Salary bonus

458065525.46 623838432.88 871495866.00 210408092.34

allowance subsidy

Welfare for

1003285.92 29776459.67 25772705.01 5007040.58

employees

Social security

4887689.95 29784783.14 30132787.04 4539686.05

expense

Of which: Medical

1257574.78 26053428.59 26598717.72 712285.65

insurance premiums

Work-related

87286.29 1253811.80 1283122.70 57975.39

injury insurance

Maternity

3542828.88 2477542.75 2250946.62 3769425.01

insurance

Housing fund 1494931.38 19778390.39 20936346.94 336974.83

Beginning

Item Increased Decreased Ending balance

balance

Labor union budget

and employee 7283186.41 5600920.29 3786718.95 9097387.75

education budget

Short-term absence

with payment

Short-term profit

sharing plan

Others 466177.72 6374170.49 6840348.21

Total 473200796.84 715153156.86 958964772.15 229389181.55

(3) List of Defined Contribution Plan

Item Beginning Increased Decreased Ending balance

balance

Basic pension

2188388.21 60611800.66 62119767.22 680421.65

benefits

Unemployment

94887.61 1548151.91 1560846.78 82192.74

insurance

Annuity 24608.00 24608.00

Total 2283275.82 62184560.57 63705222.00 762614.39

31. Taxes Payable

Item Ending balance Beginning balance

Corporate income tax 197432879.87 264749734.19

VAT 97813733.02 186891111.62

Fund for disposing abandoned 17712383.00 19157745.00

appliances and electronic products

Urban maintenance and construction tax 1186363.33 10206690.62

Education fees and local education 940271.07 7361219.22

Surcharge

Stamp duty 4046396.15 6041179.34

Land use tax 8091073.30 5095730.68

Individual income tax 5600555.35 3023518.75

Property tax 3103108.53 2209076.63

Tariff 1922353.13 2008914.61

Others 1197527.24 1469138.50

Total 339046643.99 508214059.16

32. Other payables

Item Ending balance Beginning balance

Interest payable 214023683.45 220837380.17

Other Payables 1432727668.74 1770718506.93

Total 1646751352.19 1991555887.10

32.1. Interests payable

(1) Classification

Item Ending balance Beginning balance

Item Ending balance Beginning balance

Interest on corporate bonds 124958666.67 180268944.49

Interest on long-term borrowings

with interest paid by installment and 49915175.34 17162676.76

principal paid at maturity

Interest payable on short-term

borrowings 39095155.47 23350524.40

Others 54685.97 55234.52

Total 214023683.45 220837380.17

32.2 Other payables

(1) Listed by Nature of Account

Item Ending balance Beginning balance

Expenses payable 605129775.36 626909820.31

Come-and-go money 164595180.37 323092770.74

Equity transfer payment 67482796.96 157682796.96

Related party borrowing 295208444.71 344520800.92

Cash deposit and front 246561064.97 243197538.56

Advance payment 11496087.32 7795410.38

Others 42254319.05 67519369.06

Total 1432727668.74 1770718506.93

(2) Other Significant Payables Aging over One Year

Item Unpaid/Un-carry-over

Ending balance

reason

Not meet the settlement

Equity transfer money of Jiangxi Konka 61180000.00

conditions

Total 61180000.00

33. Current Portion of Non-current Liabilities

Item Ending balance Beginning balance

Current portion of long-term borrowings 2090919000.00 18150000.00

Current portion of long-term payables 209741731.57 358746566.29

Current portion of lease liabilities 26523807.12 48656098.14

Current portion of bonds payables 2000000000.00

Total 4327184538.69 425552664.43

34. Other current liabilities

Item Ending balance Beginning balance

Accounts payable with trade acceptance

notes 199491442.79 432420000.00

Others 13158576.93 9354317.23

Total 212650019.72 441774317.23

35. Long-term Borrowings

Item Ending balance Beginning balance Description

Guaranteed borrowings 2356260000.00 2058000000.00 ①②③

④⑤⑥⑦⑧⑨⑩

Pledge borrowings 4824624148.48 3123838997.54 ???????

???

Entrusted borrowings 2611060000.00 611060000.00 ?

Credit loan 180000000.00 190000000.00

Less: Current portion 2090919000.00 18150000.00

Total 7881025148.48 5964748997.54

Notes: a) The Company has obtained long-term borrowings amounting to RMB2000000000.00 from

the Export-Import Bank of China and the term thereof is from 22 June 2020 to 24 June 2022. The

OCT Group (parent company of the Company) provides joint and several liability guarantee at the

maximum amount.b) The Company has obtained long-term borrowings amounting to RMB300000000.00 from

Shenzhen Branch China Guangfa Bank Co. Ltd. and the term thereof is from 24 June 2021 to 23

June 2024 for which the OCT Group (parent company of the Company) provides joint and several

liability guarantee at the maximum amount.c) Xingda Hongye (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB56260000.00 from Zhuhai Branch Xiamen International Bank Co. Ltd. and the term thereof is

from 25 November 2020 to 25 February 2022 for which the Company provides joint and several

liability guarantee at the maximum amount.d) The Company has obtained long-term borrowings amounting to RMB341847132.95 from

Shenzhen Rural Commercial Bank Co. Ltd. Guanlan Sub-branch with a land use right worth

RMB5220441.48 (book value) an investment property worth RMB121018537.96 (book value) and

a building worth RMB71008186.14 (book value) as pledge and the term thereof is from 22 January

2021 to 22 January 2026.e) Dongguan Konka (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB15000000 from the Agricultural Bank of China Co. Ltd. Dongguan Fenggang Sub-branch with

the land use right of Fenggang Kongka Intelligent Industrial Park worth RMB196005772.67 (book

value) as pledge and the term thereof is from 23 June 2021 to 7 May 2031.f) Sichuan Konka (a subsidiary of the Company) has obtained entrusted borrowings amounting to

RMB100000000.00 from Sichuan Gangrong Investment Development Group Co. Ltd. Yibin Konka

Technology Industrial Park (a subsidiary of the Company) provides pledge (a land use right worth

RMB4678863.20 (book value) and an investment property worth RMB8711687.32 (book value))

and Communication Technology provides joint and several liability guarantee for the aforesaid

entrusted borrowings. The term of the entrusted borrowings is from 28 May 2018 to 24 May 2025.g) Rushan Yike (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB113210000 from China Everbright Bank Co. Ltd. Yantai Economic Development Zone

Sub-branch with the long-term receivables involved in Rushan Silver Beach Water Supply and

Drainage PPP Project worth RMB350937230.14 as pledge (the term thereof is from 29 December

2016 to 28 December 2026) for which Yikang Technology (a subsidiary of the Company) provides

joint and several liability guarantee.h) Dayi Kangrun Water Affairs (a subsidiary of the Company) has obtained long-term borrowings

amounting to RMB266200000.00 from the Industrial and Commercial Bank of China Co. Ltd.Chengdu Qinglong Sub-branch with the franchise earning right involved in Dayi County Industrial

Sewage and Reclaimed Water Treatment Plant Construction Project amounting to

RMB1000000000.00 as pledge (the term thereof is from 29 April 2020 to 10 April 2035) for which

Econ Technology (a subsidiary of the Company) provides a letter of commitment to make up for any

difference.i) Fu'nan Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB465000000.00 from the Agricultural Development Bank of China Funan County Sub-branch

with the feasibility gap subsidies and government payments under the PPP Project of Whole-region

Sewage Governance in Funan County as pledge and the term thereof is from 23 August 2019 to 22

August 2039.j) Weifang Sihai (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB619155.900.00 from the Industrial Bank Co. Ltd. Weifang Sub-branch with the accounts

receivable under the contract of Weifang Central Urban Area Comprehensive Upgrading Project as

pledge and the term thereof is from 26 June 2019 to 25 June 2035.k) Weifang Sihai (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB42700000.00 from China Construction Bank Co. Ltd. with the accounts receivable under the

contract of Weifang Central Urban Area Comprehensive Upgrading Project as pledge and the term

thereof is from 28 May 2021 to 25 June 2035.l) Laizhou Lairun (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB162583906.57 from the Postal Savings Bank of China Co. Ltd. Laizhou Sub-branch with the

accounts receivable arising from all relevant earnings and earning rights under the contract of the PPP

Project of the Second Sewage Treatment Plant in Laizhou City and relevant supplementary

agreements as pledge and the term thereof is from 17 January 2020 to 16 January 2040.m) Tongchuan Kangrun Honghui (a subsidiary of the Company) has obtained long-term borrowings

amounting to RMB30000000.00 from Tongchuan Branch China Construction Bank Co. Ltd. with

the accounts receivable agreed in relevant project income (including sewage treatment service fees

garbage collection & delivery service fees and feasibility gap subsidiaries) terms of the PPP Project of

Ecological Conservation and Restoration for Mountains Rivers Forests Farmlands and Lakes in

Yintai District Tongchuan City Especially Qishui River and Its Surrounding Areas A National Pilot

Project Regarding Mountains Rivers Forests Farmlands and Lakes signed with the Water Authority

in Yintai District Tongchuan City as pledge and the term thereof is from 25 March 2021 to 24 March

2035.n) Lushan Kangrun Environment (a subsidiary of the Company) has obtained long-term borrowings

amounting to RMB250000000.00 from Henan Branch China Development Bank with the accounts

receivable under the contract of the PPP Project of Ecological Restoration and Improvement for Shahe

River in Lushan County (Phase I) as pledge and the term thereof is from 16 April 2021 to 15 April

2037.o) Donggang Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting

to RMB828000000.00 from China Construction Bank Co. Ltd. Donggang Sub-branch with the

accounts receivable under the contract of the PPP Project of Comprehensive Governance on Inland

Rivers in Donggang City as pledge and the term thereof is from 31 January 2019 to 30 January 2036.p) Suining Pengxi Kangrun (a subsidiary of the Company) has obtained long-term borrowings

amounting to RMB37210337.99 from the Industrial and Commercial Bank of China Co. Ltd. Pengxi

Sub-branch with the accounts receivable under the contract of the PPP Project of Urban Sewage

Treatment Plant in Suining Jinqiao New Area as pledge and the term thereof is from 4 June 2021 to 3

January 2035.q) Subei Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB776000000.00 from the Agricultural Development Bank of China Dunhuang Sub-branch with

the accounts receivable under the contract of the PPP Project of Water Supply for Mazongshan Town

Subei Mongol Autonomous County Gansu Province as pledge (the term thereof is from 10 March

2020 to 9 March 2035) for which Econ Technology (a subsidiary of the Company) provides joint and

several liability guarantee.r) Mengcheng Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting

to RMB160000000.00 from the Agricultural Development Bank of China Mengcheng County

Sub-branch with the prospective earnings from the PPP Project of Comprehensive Governance on

Water Environment in Mengcheng County Anhui Province as pledge and the term thereof is from 27

January 2021 to 26 January 2038.s) Xi'an Kangrun (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB150996870.97 from China Construction Bank Co. Ltd. Xi'an Gaoling District Jinghuannanlu

Sub-branch with all relevant earnings and earning rights involved in the Franchise Project of Kitchen

Garbage Treatment in Gaoling District Xi'an City as pledge and the term thereof is from 1 February

2021 to 31 January 2036.t) Wuhan Runyuan (a subsidiary of the Company) has obtained long-term borrowings amounting to

RMB466720000.00 from the Agricultural Development Bank of China (ADBC) Wuhan Dixihu

District Sub-branch with the accounts receivable under the contract of the PPP Project of Integrated

Governance on Township Domestic Sewage in Huangpi District (the term thereof is from 22 January

2020 to 19 January 2040) for which Econ Technology (a subsidiary of the Company) provides a letter

of commitment to make up for any difference.u) The OCT Group (parent company of the Company) has issued an entrusted loan of

RMB2611060000.00 to the Company via China Merchants Bank Co. Ltd. The term of the loan is

from 7 December 2020 to 25 February 2024.36. Bonds Payable

(1) List of Bonds Payable

Item Ending balance Beginning balance

Non-public offering corporate

bonds 4992708333.32 4993212788.32

Less: Current portion of bonds

payable 2000000000.00

Total 2992708333.32 4993212788.32

(2) Increase/Decrease of Bonds Payable

Issuing Duratio

Bonds name Total par value Issuing amount Beginning balance

date n

19Konka01 (note①) 2+1

1000000000.00 2019-1-14 years 996500000.00 998899371.13

19Konka02 (note②) 1500000000.00 2019-1-14 3 years 1494750000.00 1498349056.69

19Konka03 (note③) 2+1

500000000.00 2019-6-3 years 498250000.00 499220387.86

19Konka04 (note④) 500000000.00 2019-6-3 3 years 498250000.00 499220387.86

19Konka05 (note⑤) 2+1

800000000.00 2019-7-22 years 797200000.00 798679245.24

19Konka06 (note⑥) 700000000.00 2019-7-22 3 years 697550000.00 698844339.54

21Konka01（note⑦） 1000000000.00 2021-1-8 3 years 996500000.00

21Konka02（note⑧） 500000000.00 2021-5-21 3 years 498250000.00

Total 6500000000.00 6477250000.00 4993212788.32

(Continued)

Amortizatio

Issued during Withdraw n of Repay during

Bonds name the Reporting interest at face premium the Reporting Ending balance

Period value and Period

discount

19Konka01

(note ①) 1249999.96 1100628.87 1000000000.00 -

19Konka02

(note ) 36250000.02 825471.72 1499174528.41②

Amortizatio

Issued during Withdraw n of Repay during

Bonds name the Reporting interest at face premium the Reporting Ending balance

Period value and Period

discount

19Konka03

(note ) 9250000.00 779612.14 500000000.00 -③

19Konka04

(note ) 11619444.45 275157.24 499495545.10④

19Konka05

(note ) 17616666.65 440251.56 799119496.80⑤

19Konka06

(note ) 15993055.53 385220.10 699229559.64⑥

21Konka01

note 996500000.00 21432777.79 748427.69 997248427.69（ ⑦）

21Konka02

note 498250000.00 2277777.78 190775.68 498440775.68（ ⑧）

Total 1494750000.00 115689722.18 4745545.00 1500000000.00 4992708333.32

Note 1: ① On 14 January 2019 RMB 1 billion of private placement corporate bonds was issued

with the duration of two plus one years the annual interest rate of 5.00% and the due date of 14

January 2021. "19 Konka 01" has been fully sold back and delisted from the exchange on 14

January 2021.② On 14 January 2019 RMB 1.5 billion of private placement corporate bonds was issued with

the duration of three years the annual interest rate of 5.00% and the due date of 14 January 2022.③ On 3 June 2019 RMB 0.5 billion of private placement corporate bonds was issued with the

duration of two plus one years the annual interest rate of 4.50% and the due date of 3 June 2021."19 Konka 03" has been fully sold back and delisted from the exchange on 3 June 2021.④ On 15 January 2019 RMB 0.5 billion of private placement corporate bonds was issued with

the duration of three years the annual interest rate of 4.70% and the due date of 3 June 2022.⑤ On 22 July 2019 RMB 0.8 billion of private placement corporate bonds was issued with the

duration of two plus one years the annual interest rate of 4.53% and the due date of 22 July 2021.⑥ On 22 July 2019 RMB 0.7 billion of private placement corporate bonds was issued with the

duration of three years the annual interest rate of 4.70% and the due date of 22 July 2022.⑦ On 8 January 2021 RMB 1 billion of private placement corporate bonds was issued with the

duration of three years the annual interest rate of 4.46% and the due date of 8 January 2024.⑧ On 21 May 2021 RMB 0.5 billion of private placement corporate bonds was issued with the

duration of three years the annual interest rate of 4.00% and the due date of 21 May 2024.Note 2: OCT Group provided full-amount unconditional and irrevocable joint and several

liability guarantee for the due payment of the private offering of corporate bonds.37. Lease Liabilities

Item Ending balance Beginning balance

Lease liabilities 95307955.33 110388195.06

Less: Current portion 26523807.12 48656098.14

Total 68784148.21 61732096.92

38. Long-term Payables

(1) List by nature

Item Ending balance Beginning balance

Accrued financing lease outlay 737150003.99 921958930.55

Of which: unrecognized financing

55473934.22 81802514.30

expense

Less: Current portion 209741731.57 358746566.29

Total 471934338.20 481409849.96

39. Long-term Payroll Payable

Classification

Item Ending balance Beginning balance

Termination benefits-net liabilities of

defined contribution plans 5178477.38 5248309.14

Total 5178477.38 5248309.14

40. Provisions

Item Ending balance Beginning balance Reason for formation

After-sales of household

Product quality assurance 106468978.52 102146976.40 appliances

Others 206591.51 206591.51

Total 106675570.03 102353567.91

41. Deferred Income

(1) Category of Deferred Income

Item Beginning balance Increased Decreased Reason for

Ending balance

formation

Government Asset-related/in

subsidies 446900524.64 35513702.05 261258151.57 221156075.12 come related

Total 446900524.64 35513702.05 261258151.57 221156075.12

(2) Government subsidy

Amount

charged to Amount charged

Beginning New amount in Asset/income

List of Government Subsidy non-operating to other income Other changes Ending balance

balance the period -related

income in the in the period

period

与资产 /收益

Industry support funds 322011927.27 3514025.05 230394777.52 95131174.80相关

government special subsidy for

projects 30000000.00 10000000.00 40000000.00 与收益相关

UHD display chip research and

development and industrialization 20000000.00 20000000.00 与资产相关

project

Equipment subsidy 11457800.00 11457800.00 与资产相关

与资产 /收益

Other subsidies 74888597.37 10541877.00 17563374.05 13300000.00 54567100.32相关

Total 446900524.64 35513702.05 247958151.57 13300000.00 221156075.12

42. Other non-current liabilities

Item Ending balance Beginning balance

Contract obligations over one year 83705786.99 106475449.02

Total 83705786.99 106475449.02

43. Share capital

Increase/decrease (+/-)

Bon Bonus

Item Beginning balance New us issue Oth Subto Ending balance

shares

sha from ers tal

issued

res profit

Total shares 2407945408.00 2407945408.00

Total 2407945408.00 2407945408.00

44. Capital Reserves

Item Beginning balance Increased Decreased Ending balance

Share capital

premium 6702019.17 6702019.17

Other capital reserves 230185310.09 2671625.35 227513684.74

Total 230185310.09 6702019.17 2671625.35 234215703.91

Note: Due to the disposal of the associates Konka Green and Konka Technology in the current

period other capital reserves decreased by RMB 2671625.35. Due to the repurchase of minority

shareholders' equity in subsidiary Xinying Semiconductor the capital reserve (share capital

premium) increased by RMB 6702019.17.45. Other Comprehensive Income

Reporting Period

Less: Less: Recorded in

Recorded in other

other comprehensive

comprehensive income in prior

Beginning Less: Attributable to

Item Income before income in period and Attributable to

balance Income owners of the

Ending balance

taxation in the prior period transferred in non-controlling

tax Company as the

Current Period and retained earnings interests after tax

expense parent after tax

transferred in in the Current

profit or loss in Period

the Current

Period

I. Items that will not be

reclassified to profit or -6398878.20 -6398878.20

loss

Changes in fair value

of other equity instrument -6398878.20 -6398878.20

investment

Others

II. Items that will be

reclassified to profit or -10184164.22 -1547270.99 -583043.66 -964227.33 -10767207.88

loss

Of which: Other

comprehensive income

that will be reclassified to -2397350.96 1486086.18 1486086.18 -911264.78

profit or loss under the

equity method

Differences arising

from the translation of -7786813.26 -3033357.17 -2069129.84 -964227.33 -9855943.10

Reporting Period

Less: Less: Recorded in

Recorded in other

other comprehensive

comprehensive income in prior

Beginning Less: Attributable to

Item Income before income in period and Attributable to

balance Income owners of the

Ending balance

taxation in the prior period transferred in non-controlling

tax Company as the

Current Period and retained earnings interests after tax

expense parent after tax

transferred in in the Current

profit or loss in Period

the Current

Period

foreign currency

denominated financial

statements

Total Other

Comprehensive Income -16583042.42 -1547270.99 -583043.66 -964227.33 -17166086.08

46. Surplus Reserves

Item Beginning balance Increased Decreased Ending balance

Statutory surplus

reserves 973502519.62 973502519.62

Discretional

surplus reserves 238218590.05 238218590.05

Total 1211721109.67 1211721109.67

47. Retained Earnings

Item Reporting Period Same period of last

year

Ending balance of last year 4595371391.63 4239763606.89

Add: Total beginning balance of retained earnings

before adjustments

Of which: change of accounting policy

Other adjustment factors

Beginning balance of the Reporting Period 4595371391.63 4239763606.89

Add: Net profit attributable to owners of the Company 85449919.57

as the parent 477633250.14

Retained incomes carried forward from other

comprehensive income -1628195.00

Less: Withdrawal of statutory surplus reserves

Withdrawal of discretional surplus reserves

Dividend of ordinary shares payable 240794540.80 120397270.40

Ending balance of this period 4440026770.40 4595371391.63

48. Operating Revenue and Cost of Sales

(1) Operating Revenue and Cost of Sales

Reporting Period Same period of last year

Item

Operating revenue Cost of sales Operating revenue Cost of sales

Main

21412726539.67 20510002960.62 17233552849.87 16069773569.48

operations

Other

397435333.41 307172753.16 290631046.87 199219863.40

operations

Total 21810161873.08 20817175713.78 17524183896.74 16268993432.88

(2) Main Operations (Classified by product)

Reporting Period Same period of last year

Item

Operating revenue Cost of sales Operating revenue Cost of sales

Supply

chain

trading 12184495984.54 12079110369.50 9566197970.86 9423055276.96

business

Color TV

business 3190601881.06 3017183364.20 3218278547.14 2742839819.16

Environmen

tal 2724186133.96 2439448446.23 1498623593.33 1337882701.47

protection

Reporting Period Same period of last year

Item

Operating revenue Cost of sales Operating revenue Cost of sales

business

Consumer

appliances 1752194252.46 1608490566.46 1918628399.97 1650949066.11

business

Semi-condu

ctor 241973760.06 229060263.71 223849167.50 213510864.28

business

Others 1319274527.59 1136709950.52 807975171.07 701535841.50

Total 21412726539.67 20510002960.62 17233552849.87 16069773569.48

49. Taxes and Surtaxes

Item Reporting Period Same period of last year

Stamp duty 17210974.34 7525016.46

Urban maintenance and construction tax 5272168.22 4563133.76

Land use tax 12591947.22 7726576.91

Property tax 4521990.47 4474412.24

Education surcharge 2252651.83 2110616.64

Local education surcharge 1295806.68 1407025.70

Water resources fund 98737.91 75715.03

Others 1212085.27 1301943.62

Total 44456361.94 29184440.36

50. Selling Expense

Item Reporting Period Same period of last year

Payroll 179194691.52 206209082.36

Advertising expense 143443247.26 269906176.77

Logistic Fee 57131056.01 186463203.90

Promotional activities 93916189.20 109821424.32

Warranty fee 95238254.77 84742647.02

Taxes and fund 26084857.60 26313964.00

Business travel charges 9695834.71 8381930.49

Rental charges 13812228.32 13266655.00

Exhibition expenses 2675578.55 7513097.13

Business entertainment expenses 6473826.73 4916413.21

Others 39996271.80 51689787.78

Total 667662036.47 969224381.98

51. Administrative Expense

Item Reporting Period Same period of last year

Item Reporting Period Same period of last year

Payroll 172124998.88 177373892.49

Depreciation charge 55861222.66 80326472.49

Intermediary fees 24599241.61 64645576.61

Business travel charges 8275347.12 4551426.46

Loss on scraping of inventories 2246719.29 3077371.04

Water & electricity fees 5392545.21 4831271.94

Others 90553592.30 106109769.41

Total 359053667.07 440915780.44

52. R&D Expense

Item Reporting Period Same period of last year

Salary 141474094.27 138480765.54

Others 143189372.99 119568820.75

Total 284663467.26 258049586.29

53. Finance Costs

Item Reporting Period Same period of last year

Interest expense 488330464.76 532953584.28

Less: Interest income 78303181.42 124261830.72

Add: Exchange loss 28226971.34 -64612997.78

Other 21161528.03 42962110.97

Total 459415782.71 387040866.75

54. Other Income

Resources Reporting Period Same period of last year

Support fund 342585919.00 147152074.00

Transfer of deferred income 247958151.57 22399161.10

Rewards and subsidies 116820277.53 108968284.81

Land tax rebates 4728544.03 7197234.18

Software tax rebates 6085265.89 15323154.27

Post subsidies 2426398.00 13633750.07

L/C export subsidy 91800.00 2990537.00

Others 430656.91

Total 720696356.02 318094852.34

55. Investment Income

Item Reporting Period Same period of last year

Long-term equity investment income

19335816.88 49858252.47

measured by equity method

Investment income from disposal of

177579605.00 454470348.72

long-term equity investment

Item Reporting Period Same period of last year

Investment income from disposal of

3405333.03

held-for-trading financial assets

Income from remeasurement of

residual stock rights at fair value after 68185019.88 23788733.72

losing control power

Interest income from holding of debt

34566759.25 37286956.28

investments

Income from entrusted wealth

29883952.37

management entrusted loans

Investment income from disposal of

financial assets at fair value through 22577111.88

current profit or loss

Total 322244312.89 598693576.59

56. Gain on Changes in Fair Value

Sources Reporting Period Same period of last

year

Trading financial assets 3691020.84

Of which: gain on changes in fair value of

derivative financial instruments

Other non-current financial assets 36671492.89

Total 40362513.73

57. Credit Impairment Loss

Item Reporting Period Same period of last year

Loss on bad debts of notes receivable 19146640.03 891406.18

Bad debt losses of accounts receivable -64007725.46 -35516049.10

Bad debt losses of other receivables -26531092.63 -9133606.38

Bad debt loss of prepayment 4506841.30

Bad debt loss of contract assets -636099.18

Total -71392178.06 -39887507.18

58. Asset Impairment Loss

Item Reporting Period Same period of last year

Inventory depreciation loss and

contract performance cost impairment -10573236.91 -1985659.95

loss

Contractual Asset Impairment Loss -18965495.91

Total -29538732.82 -1985659.95

59. Asset Disposal Income (“－” for loss)

Amount recorded

Same period of last in the current

Item Reporting Period

year non-recurring

profit or loss

Amount recorded

Same period of last in the current

Item Reporting Period

year non-recurring

profit or loss

Incomes from disposal of disposal

groups held for sale

Incomes from disposal of

non-current assets 88668.35 98454282.86 88668.35

Including: incomes from

disposal of non-current assets not 88668.35 98454282.86 88668.35

classified as the held-for-sale assets

Of which: Fixed assets disposal

income 88668.35 -145717.14 88668.35

Intangible assets disposal

98600000.00

income

Total 88668.35 98454282.86 88668.35

60. Non-operating Income

(1) List of Non-operating Income

Amount recorded

Same Period of last in the current

Item Reporting Period

year non-recurring

profit or loss

Insurance indemnity 12736400.00 12736400.00

Non-current assets damage and

retirement gains 237884.42 237884.42

Compensation and penalty income 1884536.59 1480648.26 1884536.59

Government subsidies unrelated to

the normal operation of the 3000000.00

Company

Gains on debt restructuring 544827.07 377094.96 544827.07

Other 6214629.71 3804030.26 6214629.71

Total 21618277.79 8661773.48 21618277.79

61. Non-operating Expense

Amount

Item Reporting Period Same Period of

recorded into the

last year currentnon-recurring

profit or loss

Losses on damage and scraping 437270.73 867633.27 437270.73

of non-current assets

Compensation expense 161680.10 161680.10

Others 6194922.31 6269242.08 6194922.31

Total 6793873.14 7136875.35 6793873.14

62. Income Tax Expense

(1) Lists of Income Tax Expense

Item Reporting Period Same period of last

year

Current income tax expense 192219793.73 62167085.67

Deferred income tax expense -107956525.36 11258436.80

Total 84263268.37 73425522.47

(2) Adjustment Process of Accounting Profit and Income Tax Expense

Item Reporting Period

Profit before taxation 175020188.61

Current income tax expense accounted at

43755047.15

statutory/applicable tax rate

Influence of applying different tax rates by subsidiaries 596097.16

Influence of income tax before adjustment 25532149.88

Influence of non-taxable income -28842890.50

Influence of not deductable costs expenses and losses 3181788.78

Influence of deductable loss of unrecognized deferred

-3070599.55

income tax assets in prior period

Influence of deductable temporary difference or

deductable losses of unrecognized deferred income tax in 61106584.81

the Reporting Period

Changes in the balance of deferred income tax assets/

-4100883.59

liabilities in previous period due to adjustment of tax rate

Other -13894025.77

Income tax expense 84263268.37

63. Other Comprehensive Income

Refer to “Note VI-45. Other Comprehensive Income” for details.64. Cash Flow Statement

(1) Cash Generated from/Used in Other Operating/Investing/Financing Activities

1) Cash Generated from Other Operating Activities

Item Reporting Period Same Period of last year

Commercial factoring accounts 1943522.48 700909868.83

received

Intercourse funds 164755704.28 46698484.01

Income from government subsidy 448099427.58 319790565.67

Front money and guarantee deposit 279858364.93 403296224.51

Interest income from bank deposits 37983778.15 14105927.41

Other 51992741.93 583114151.39

Total 984633539.35 2067915221.82

2) Cash Used in Other Operating Activities

Item Reporting Period Same Period of last year

The commercial factoring payment 700000000.00

Expense for cash payment 563280960.36 661630597.26

Item Reporting Period Same Period of last year

Payment made on behalf 11499654.13 10648911.81

Payment for guarantee deposit cash 93768423.51 367885658.11

deposit

Expense for bank handling charges 5216732.77 20120952.41

Other 404575413.78 229868221.99

Total 1078341184.55 1990154341.58

3) Cash Generated from Other Investing Activities

Item Reporting Period Same Period of last year

Recovery of financial products and 303571732.31

fixed term deposits

Recovery of entrusted loans 466367371.66 905185808.83

Other 260630141.85

Total 726997513.51 1208757541.14

4) Cash Used in Other Investing Activities

Item Reporting Period Same Period of last year

Payment for entrusted loans 174930000.00 112700000.00

Other 160869856.00 40230416.99

Total 335799856.00 152930416.99

5) Cash Generated from Other Financing Activities

Item Reporting Period Same Period of last year

Recovery of margin deposit 197949393.49 629073059.73

pledged

Lease-related accounts 34000000.00 230602970.00

Receiving entrusted loans 361338700.00 86200000.00

Other 2070691.00

Total 595358784.49 945876029.73

6) Cash Used in Other Financing Activities

Item Reporting Period Same Period of last year

Deposit as margin for pledge 161578386.94 760536005.49

Repayment of entrusted loans 29400000.00 101052.05

Lease-related payments 236173947.51 144556719.67

Financing cost 18501066.06 17210477.52

Other 34551700.00 111500000.00

Total 480205100.51 1033904254.73

(2) Supplemental Information for Cash Flow Statement

Supplemental information Reporting Period Same period of last year

1. Reconciliation of net profit to net cash

flows generated from operating activities

Supplemental information Reporting Period Same period of last year

Net profit 90756920.24 72244328.36

Add: Provision for impairment of assets 29538732.82 1985659.95

Credit impairment loss 71392178.06 39887507.18

Depreciation of fixed assets oil-gas assets 205328397.90

and productive living assets 150944828.97

Amortization of intangible assets 38706987.41 35300611.24

Amortization of long-term prepaid expenses 43983314.75 50718178.66

Losses on disposal of fixed assets intangible -88668.35

assets and other long-lived assets (gains: -98454282.86

negative)

Losses on scrap of fixed assets (gains: 199386.31

negative) 738614.79

Losses on changes in fair value (gains: -40362513.73

negative)

Finance costs (gains: negative) 449599765.91 498160321.15

Investment loss (gains: negative) -322244312.89 -598693576.59

Decrease in deferred income tax assets (gains: -102340668.15

negative) 10226485.06

Increase in deferred income tax liabilities (“-” -5615859.48

means decrease) -5187674.24

Decrease in inventories (gains: negative) -648533766.41 -228342968.29

Decrease in accounts receivable generated -266870721.39

from operating activities (gains: negative) -485454160.52

Increase in accounts payable used in operating -580252243.46

activities (decrease: negative) -542846678.70

Other -247958151.57 22405878.36

Net cash generated from/used in operating -1284761222.03

activities -1076366927.48

2. Significant investing and financing

activities without involvement of cash

receipts and payments

Transfer of debt to capital

Current portion of convertible corporate bonds

Fixed assets leased in by financing

3. Net increase/decrease of cash and cash

equivalent:

Ending balance of cash 5159985226.06 4537905819.30

Less: beginning balance of cash 4298056113.24 4493701917.22

Add: Ending balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase in cash and cash equivalents 861929112.82 44203902.08

(3) Net Cash Receive from Disposal of the Subsidiaries

Item Amount

Cash or cash equivalents received in the Reporting Period from disposal

of subsidiaries in the Current Period 138930000.00

Of which: Yantai Kangyun 34510000.00

Shenzhen Kangxin Property 104420000.00

Less: cash and cash equivalents held by subsidiaries on the date of

losing control power 5786319.88

Of which: Yantai Kangyun 420807.32

Shenzhen Kangxin Property 5365512.56

Add: Cash or cash equivalents received in the Reporting Period from

disposal of subsidiaries in the prior period

Net cash received from disposal of subsidiaries 133143680.12

(4) Net Cash Paid for Obtaining Subsidiaries

Item Amount

Cash or cash equivalents paid in the Reporting Period for the business

combination occurring in the Reporting Period

Less: cash and cash equivalents held by subsidiaries on the purchase

date

Add: Cash or cash equivalents received in the Reporting Period from

96500000.00

disposal of subsidiaries in the prior period

Net cash paid for obtaining subsidiaries 96500000.00

(5) Cash and Cash Equivalents

Item Ending balance Beginning balance

Cash 5159985226.06 4298056113.24

Including: Cash on hand 9534.97 16052.88

Bank deposit on demand 5159975691.09 4298040060.36

Ending balance of cash and cash

equivalents 5159985226.06 4298056113.24

65. Items in the Statement of Changes in Shareholders' Equity

There is no “other” amount to adjust the amount at the end of the previous year in this period.66. Assets with Restricted Ownership or Right to Use

Item Ending carrying value Reason for restriction

Among them RMB543742698.80 is margin

deposit pledge is used for borrowing or issuing bank

acceptance bill RMB34559081.12 is financial

Monetary assets 648960499.91

supervision account fund; RMB63213179.74 is

fixed deposit that can not be withdrawn in advance;

RMB7445540.25 is restricted due to other reasons.The company pledged bank acceptance bills with a

book value of RMB 693159230.21 for

Notes receivable 693159230.21 comprehensive financing services such as issuing

bank acceptance bills letters of credit guarantees

and trade finance.Investment

140612795.31 For mortgage loan

property

Item Ending carrying value Reason for restriction

Fixed assets 687463055.62 Used for mortgage loan finance lease and guarantee.Construction in

317974560.85 For mortgage loan

progress

Intangible assets 397262395.64 Used for mortgage loan finance lease and guarantee.Long-term

350937230.14 For pledge loan

receivables

Total 3236369767.68

67. Foreign Currency Monetary Items

(1) Foreign Currency Monetary Items

Ending foreign Ending balance

Item Exchange rate

currency balance converted to RMB

Monetary assets

Of which: USD 84160593.16 6.4601 543685847.87

EUR 5936.59 7.6862 45629.82

EGP 4721940.41 0.4125 1947800.42

GBP 5.03 8.9410 44.97

HKD 13267757.98 0.8321 11040101.42

CAD 6.96 5.2097 36.26

PLN 792726.08 1.7009 1348347.79

Accounts receivable

Of which: USD 134495088.51 6.4601 868851721.28

EUR 22053.30 7.6862 169506.07

EGP 18757221.24 0.4125 7737353.76

GBP 908052.33 8.9410 8118895.88

HKD 1578159.97 0.8321 1313186.91

AUD 49764.00 4.8528 241494.74

Other receivables

Of which: USD 39323079.55 6.4601 254031026.20

HKD 1051222.12 0.8321 874721.93

YEN 21400000.00 0.0584 1250359.20

Interest receivable

Of which: USD 25006.06 6.4601 161541.65

Short-term borrowings

Of which: USD 84416347.52 6.4601 545338046.61

Accounts payable

Of which: USD 31338417.26 6.4601 202449309.34

EGP 8551828.67 0.4125 3527629.33

Ending foreign Ending balance

Item Exchange rate

currency balance converted to RMB

HKD 21887742.19 0.8321 18212790.28

Other payables

Of which: USD 3036214.29 6.4601 19614247.93

EUR 18240.00 7.6862 140196.29

EGP 942604.30 0.4125 388824.27

HKD 19172938.70 0.8321 15953802.29

Interest payable

Of which: USD 325559.34 6.4601 2103145.89

(2) Notes to Overseas Entities

The significant overseas entities include Hong Kong Konka Konka Electrical Appliances

International Trading Chain Kingdom Memory Technologies Kangjietong and Jiali International.The main overseas operating place is Hong Kong. The Company’s recording currency is HKD

since the main currency in circulation in Hong Kong is HKD.68. Government Subsidy

(1) Basic Information on Government Subsidy

Amount recorded in

Category Amount Listed items the current profit or

loss

Industry support funds 346099944.05 Other income 342598292.32

Rewards and subsidies 153816620.53 Other income 117218675.79

Tax rebates on software 6085265.89 Other income 6085265.89

Land tax rebates 4728566.18 Other income 4728544.03

Post subsidies 2426398.00 Other income 2426398.00

Deferred

Subsidies for L/C exports 91800.00

income/Other income 91800.00

Total 513248594.65 473148976.03

(2) Return of Government Subsidy

No such cases in the Reporting Period.VII. Changes of Consolidation Scope

1. Disposal of subsidiary

The differences of enjoyed

net assets share of the

Equity subsidiary in

Method of

Name of the The equity disposal disposal Time of losing Recognition basis for the time of corresponding

equity

subsidiary price proportion control losing control power consolidated statements

disposal

(%) of the disposal price and

the disposal investment

(RMB’0000)

The rights and obligations related to

Yantai Kangyun 3451.00 17.00 Transfer 2021-3-31 the underlying equity have been 3409.25

transferred

The rights and obligations related to

Shenzhen Kangxin

10442.00 51.00 Transfer 2021-6-22 the underlying equity have been 8597.34

Property

transferred

(Continued)

Residual Carrying value Recognition method Amount of other

Fair value of

equity of residual equity Gains or losses from and main assumption comprehensive income

residual equity on

Name of the proportion on on the date of re-measurement of of fair value of related to former

the date of losing

subsidiary the date of losing control residual equity at fair residual equity on the subsidiaries transferred

control power

losing control power value (RMB’0000) date of losing control into investment profit or

(RMB’0000)

power (%) (RMB’0000) power loss (RMB’0000)

Yantai Kangyun 34.00 83.50 6902.00 6818.50 Evaluated price

Shenzhen Kangxin

Property

Konka Group Co. Ltd. Interim Report2021

2. Changes in Combination Scope for Other Reasons

（1）Subsidiaries Established by the Company in H1 2021

Shareholding Time and place

Method of

Name Registered capital percentage of obtaining

obtaining

(%) control power

Newly

Nantong Hongdin 30000000.00 100.00 2021-4-22 established

Newly

Chuzhou Konka 100000000.00 94.90 2021-6-28 established

Newly

Xi'an Huasheng 100000000.00 66.00 2021-3-4 established

Newly

Konka Soft Electronic 100000000.00 95.00 2021-3-31 established

Konka Hongye Newly

Electronics 100000000.00 90.10 2021-5-7 established

Kowin Memory (Hong Newly

Kong) HKD 10000000.00 100.00 2021-2-2 established

Industrial and Trade Newly

Technology 50000000.00 100.00 2021-2-7 established

Newly

Konka Huazhong 30000000.00 100.00 2021-6-9 established

Yibin Kangrun Medical Newly

50000000.00 82.19 2021-3-26 established

Yibin Kangrun

Newly

Environmental 76000000.00 53.69

Protection 2021-4-21

established

Kangruncheng

Newly

Environmental 10000000.00 26.01

Technology 2021-3-8

established

Shaanxi Konka Newly

Intelligent 120000000.00 51.00 2021-3-5 established

Newly

Kangxin Semiconductor 70000000.00 100.00 2021-6-11 established

（2）The situation of the company's cancellation of the distribution of remaining assets of the

subsidiary in H1 2021

Shareholding Liquidation

Name Registered capital

percentage (%) completion time

Chongqing Kanglei

50000000.00 51.00 2021-4-7

Optoelectronic

Henan Kangxin Property 50000000.00 51.00 2021-5-18

VIII. Equity in Other Entities

1. Equity in Subsidiary

(1) Subsidiaries

Serial Main Holding

Registration Way of

numbe Name operating Nature of business percentage

place gaining

r place (%)

Konka Group Co. Ltd. Interim Report2021

Direct Indirec

ly tly

Establishme

Electronics Guangdong Guangdong

1 Manufacturing industry 100 nt or

Technology Shenzhen Shenzhen

investment

Establishme

Anhui Anhui

2 Anhui Zhilian Electronic commerce 100 nt or

Chuzhou Chuzhou

investment

Establishme

Jiangsu Jiangsu Wholesale and retail

3 Haimen Konka 100 nt or

Nantong Nantong industry

investment

Establishme

Chengdu Konka Sichuan Sichuan Wholesale and retail

4 100 nt or

Smart Chengdu Chengdu industry

investment

Establishme

Chengdu Konka Sichuan Sichuan

5 Manufacturing industry 100 nt or

Electronic Chengdu Chengdu

investment

Software and Establishme

Guangdong Guangdong

6 Youzhihui information technology 100 nt or

Shenzhen Shenzhen

service investment

Establishme

Xiaojia Guangdong Guangdong

7 Retail industry 100 nt or

Technology Shenzhen Shenzhen

investment

Establishme

Liaoyang Liaoning Liaoning

8 Wholesale industry 100 nt or

Kangshun Smart Liaoyang Liaoyang

investment

Liaoyang Comprehensive Establishme

Liaoning Liaoning

9 Kangshun utilization of waste 100 nt or

Liaoyang Liaoyang

Renewable resources industry investment

Establishme

Jiangsu Jiangsu

10 Nanjing Konka Wholesale industry 100 nt or

Nanjing Nanjing

investment

Establishme

Guangdong Guangdong

11 XingDa HongYe Manufacturing industry 51 nt or

Zhongshan Zhongshan

investment

Establishme

12 Shanghai Xinfeng Shanghai Shanghai Commerce 51 nt or

investment

Establishme

Guangdong Guangdong

13 Konka Circuit Investment holding 100 nt or

Shenzhen Shenzhen

investment

Establishme

Guangdong Guangdong

14 Boluo Precision Manufacturing industry 100 nt or

Boluo Boluo

investment

Establishme

Guangdong Guangdong

15 Boluo Konka Manufacturing industry 100 nt or

Boluo Boluo

investment

Fujian Fujian Establishme

16 Xiamen Dalong Commerce 69.23

Xiamen Xiamen nt or

Konka Group Co. Ltd. Interim Report2021

Holding

Serial Main percentage

Registration Way of

numbe Name operating Nature of business (%)

place gaining

r place Direct Indirec

ly tly

investment

Establishme

Anhui Anhui

17 Anhui Tongchuang Manufacturing industry 100 nt or

Chuzhou Chuzhou

investment

Electrical machinery Establishme

Jiangsu Konka Jiangsu Jiangsu

18 and equipment 51 nt or

Smart Changzhou Changzhou

manufacturing investment

Establishme

Anhui Electrical Anhui Anhui

19 Manufacturing industry 51 nt or

Appliance Chuzhou Chuzhou

investment

Establishme

Frestec Henan Henan

20 Manufacturing industry 51 nt or

Refrigeration Xinxiang Xinxiang

investment

Establishme

Frestec Electrical Henan Henan

21 Manufacturing industry 51 nt or

Appliances Xinxiang Xinxiang

investment

Establishme

Frestec Household Henan Henan

22 Manufacturing industry 51 nt or

Appliances Xinxiang Xinxiang

investment

Establishme

Frestec Smart Henan Henan

23 Retail industry 51 nt or

Home Xinxiang Xinxiang

investment

Establishme

Guangdong Guangdong

24 Konka Investment Capital markets service 100 nt or

Shenzhen Shenzhen

investment

Industrial park Establishme

Yibin Konka Sichuan Sichuan

25 development and 100 nt or

Technology Park Yibin Yibin

operation management investment

Establishme

Guangdong Guangdong

26 Konka Capital Capital markets service 100 nt or

Shenzhen Shenzhen

investment

Establishme

Industrial Park Guangdong Guangdong

27 Commercial service 51 nt or

Development Shenzhen Shenzhen

investment

Investment in industry

Establishme

Guangdong Guangdong commercial information

28 Konka Suiyong 51 nt or

Shenzhen Shenzhen consultancy and

investment

investment advisor

Establishme

Kangquan Guangdong Guangdong

29 Commercial service 51 nt or

Enterprise Shenzhen Shenzhen

investment

Establishme

Guangdong Guangdong

30 Konka Suyuan Commercial service 51 nt or

Shenzhen Shenzhen

investment

Konka Group Co. Ltd. Interim Report2021

Holding

Serial Main percentage

Registration Way of

numbe Name operating Nature of business (%)

place gaining

r place Direct Indirec

ly tly

Establishme

Shengxing Guangdong Guangdong

31 Commercial service 51 nt or

Industrial Shenzhen Shenzhen

investment

Software and Establishme

Zhitong Guangdong Guangdong

32 information technology 51 nt or

Technology Shenzhen Shenzhen

service investment

Establishme

Guangdong Guangdong Insurance agents

33 Konka Factoring 100 nt or

Shenzhen Shenzhen (non-bank finance)

investment

Establishme

Beijing Konka

34 Beijing Beijing Sale of home appliance 100 nt or

Electronic

investment

Tianjin Pilot Tianjin Pilot Establishme

35 Konka Leasing Free Trade Free Trade Leasing industry 100 nt or

Zone Zone investment

Industrial park Establishme

Suining Konka Sichuan Sichuan

36 development and 100 nt or

Industrial Park Suining Suining

operation management investment

Suining Electronic Establishme

Sichuan Sichuan

37 Technological Commercial service 100 nt or

Suining Suining

Innovation investment

Establishme

38 Shanghai Konka Shanghai Shanghai Real estate industry 100 nt or

investment

Establishme

Shandong Shandong

39 Yantai Kangjin Real estate industry 62.80 nt or

Yantai Yantai

investment

Establishme

Mobile Guangdong Guangdong

40 Commerce 100 nt or

Interconnection Shenzhen Shenzhen

investment

Establishme

Sichuan Sichuan

41 Sichuan Konka Manufacturing industry 100 nt or

Yibin Yibin

investment

Establishme

Sichuan Sichuan

42 Yibin Smart Information service 100 nt or

Yibin Yibin

investment

Establishme

Shenzhen Guangdong Guangdong

43 Semi-conductor 100 nt or

KONSEMI Shenzhen Shenzhen

investment

Software and Establishme

44 Chongqing Konka Chongqing Chongqing information technology 100 nt or

service investment

Design of integrated Establishme

45 Hefei KONSEMI Anhui Hefei Anhui Hefei 51

circuit nt or

Konka Group Co. Ltd. Interim Report2021

Holding

Serial Main percentage

Registration (%) Way ofnumbe Name operating Nature of business

place gaining

r place Direct Indirec

ly tly

investment

Establishme

46 Yihe Electronic Anhui Hefei Anhui Hefei Wholesale industry 51 nt or

investment

Establishme

Shenzhen Huiying Guangdong Guangdong

47 Wholesale industry 51 nt or

Technology Shenzhen Shenzhen

investment

Computer

Chongqing communications and Establishme

48 Huiying Chongqing Chongqing other electronic 51 nt or

Technology equipment investment

manufacturing

Computer

communications and Establishme

Kowin Memory Guangdong Guangdong

49 other electronic 100 nt or

(Shenzhen) Shenzhen Shenzhen

equipment investment

manufacturing

Computer

communications and Establishme

Konka Xinyun Jiangsu Jiangsu

50 other electronic 100 nt or

Semiconductor Yancheng Yancheng

equipment investment

manufacturing