Konka Group Co. Ltd. Interim Report 2024

(Summary)

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2024-41

Bond Code: 149987 133306 Bond Name: 22 Konka 01 22 Konka 03

133333 133759 22 Konka 05 24 Konka 01

133782 133783 24 Konka 02 24 Konka 03

KONKA GROUP CO. LTD.INTERIM REPORT 2024 (SUMMARY)

Part I Important Notes

This Summary is based on the full Interim Report. In order for a full understanding of the operating

results financial condition and future development planning of the Company investors are kindly

reminded to read the full text carefully on the media designated by the China Securities Regulatory

Commission (the “CSRC”).All the Company’s directors have attended the Board meeting for the review of this Report and its

summary.Independent auditor’s modified opinion:

□ Applicable √ Not applicable

Board-approved interim cash and/or stock dividend plan for ordinary shareholders:

□ Applicable √ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:

□ Applicable √ Not applicable

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.Part II Key Corporate Information

1. Stock Profile

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

Stock exchange for stock listing Shenzhen Stock Exchange

Changed stock name (if any) N/A

Contact information Board Secretary Securities Representative

Name Li Chunlei Miao Leiqiang

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

Office address

28 Keji South Twelfth Road Science and 28 Keji South Twelfth Road Science and

1Konka Group Co. Ltd. Interim Report 2024

(Summary)

Technology Park Yuehai Street Nanshan Technology Park Yuehai Street Nanshan

District Shenzhen Guangdong Province District Shenzhen Guangdong Province

China China

Tel. 0755-26609138 0755-26609138

E-mail address szkonka@konka.com szkonka@konka.com

2. Key Financial Information

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

H1 2024 H1 2023 Change (%)

Operating revenue (RMB) 5412530372.47 10472061171.94 -48.31%

Net profit attributable to the listed company’s shareholders

-1087581842.55-193240232.33-462.81%

(RMB)

Net profit attributable to the listed company’s shareholders

-1103078610.72-891594370.41-23.72%

before exceptional gains and losses (RMB)

Net cash generated from/used in operating activities (RMB) -439338365.13 -201550105.24 -117.98%

Basic earnings per share (RMB/share) -0.4517 -0.0803 -462.52%

Diluted earnings per share (RMB/share) -0.4517 -0.0803 -462.52%

Weighted average return on equity (%) -21.33% -2.55% -18.78%

30 June 2024 31 December 2023 Change (%)

Total assets (RMB) 34324017267.75 35824818212.66 -4.19%

Equity attributable to the listed company’s shareholders

4553306674.945644401184.65-19.33%

(RMB)

3. Shareholders and Their Holdings as at the End of the Reporting Period

Unit: share

Number of preferred shareholders with resumed voting

Number of ordinary shareholders 84245 0

rights (if any)

Top 10 shareholders (exclusive of shares lent in refinancing)

Shareholdin Shares in pledge marked

Nature of Number of Restricte

Name of shareholder g or frozen

shareholder shares d shares

percentage Status Shares

OVERSEAS CHINESE TOWN State-owned

21.75%5237469320

HOLDINGS COMPANY legal person

CITIC SECURITIES

Foreign legal

BROKERAGE (HONG KONG) 7.48% 180001110 0

person

CO. LTD.GUOYUAN SECURITIES Foreign legal

2.47%594565430

BROKER (HK) CO. LTD. person

Foreign legal

HOLY TIME GROUP LIMITED 2.38% 57289100 0

person

Foreign legal

GAOLING FUND L.P. 1.21% 29037555 0

person

2Konka Group Co. Ltd. Interim Report 2024

(Summary)

Domestic

WANG JINGFENG 1.06% 25625800 0

natural person

Domestic

ZHANG SUFEN 1.06% 25500000 0

natural person

Foreign natural

NAM NGAI 0.83% 20000000 0

person

CHINA MERCHANTS State-owned

0.82%198375200

SECURITIES (HK) LIMITED legal person

BOCOM INTERNATIONAL Foreign legal

0.78%188960370

SECURITIES LIMITED person

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

majority shareholder Overseas Chinese Town Holdings Company (OCT Group) holds

180001110 and 18360000 ordinary shares in the Company respectively through CITIC

Related or acting-in-concert parties

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

among shareholders above

Limited. Happy Bloom Investment Limited and OCT Group 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.Shareholders conducting margin Wang Jingfeng holds 25500000 A-shares in the Company through his securities account

trading (if any) for customer credit trading guarantee in Guotai Junan Securities Co. Ltd.

5% or greater shareholders top 10 shareholders and Top 10 unrestricted shareholders involved in

refinancing shares lending

□ Applicable √ Not applicable

Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares

lending/return compared with the prior period

□ Applicable √ Not applicable

4. Change of Controlling Shareholder or Actual Controller in Reporting Period

Change of the controlling shareholder in the Reporting Period:

□ Applicable √ Not applicable

The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:

□ Applicable √ Not applicable

The actual controller remained the same in the Reporting Period.

5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.

3Konka Group Co. Ltd. Interim Report 2024

(Summary)

6. Outstanding Bonds at the Date when this Report Was Authorized for Issue

√ Applicable □ Not applicable

(1) Basic Information of Bonds

Bonds

Coup

balance

Name Abbr. Code Issue date Due date on

(RMB’00

rate

00)

Corporate bonds publicly offered to professional

22 Konka 14 July 14 July

investors in 2022 of Konka Group Co. Ltd. 149987 120000 3.23%

0120222025

(Tranche I) (Variety I)

Privately placed corporate bonds to professional 8 8

22 Konka

investors in 2022 of Konka Group Co. Ltd 133306 September September 60000 3.30%

03

(Tranche I) (Variety I) 2022 2025

Privately placed corporate bonds to professional

22 Konka 18 October 18 October

investors in 2022 of Konka Group Co. Ltd 133333 60000 3.50%

0520222025

(Tranche II)

Privately placed corporate bonds to professional

24 Konka 29 January 29 January

investors in 2024 of Konka Group Co. Ltd 133759 150000 4.00%

0120242027

(Tranche I)

Privately placed corporate bonds to professional

24 Konka 18 March 18 March

investors in 2024 of Konka Group Co. Ltd 133782 40000 4.00%

0220242027

(Tranche II) (Variety I)

Privately placed corporate bonds to professional

24 Konka 18 March 18 March

investors in 2024 of Konka Group Co. Ltd 133783 40000 4.03%

0320242027

(Tranche II) (Variety II)

(2) Financial Indicators as at the End of the Reporting Period

Unit: RMB’0000

Item 30 June 2024 31 December 2023

Debt/asset ratio 86.45% 83.51%

Item H1 2024 H1 2023

EBITDA-to-interest cover (times) -2.34 0.89

Part III Significant Events

During the Reporting Period the Company followed the new development strategy of "One Axis

Two Wheels and Three Growth Drivers" and adhered to long-term value-oriented principles as well

as the operational strategy of focusing on the long term and improving specialization to become

stronger. It also deepened integration for specialization and implemented lean management to

promote high-quality development. During the Reporting Period the Company promoted business

restructuring by optimizing some business lines which did not produce a good synergic effect with

the main business and had a low gross margin. As a result the Company's operating revenue

declined year on year. Affected by the following factors the Company's net profit attributable to its

shareholders for the first half of 2024 was negative:

4Konka Group Co. Ltd. Interim Report 2024

(Summary)

1. In the first half of 2024 the Company actively adjusted its sales strategy for its domes tic color

TV business and optimized the product structure. Despite the year-over-year increase in the revenue

and gross profit and the gradual improvement of the operations the Company's color TV business

still suffered a deficit due to the limited room for reduction of necessary expenses and the

continuously intensifying competition in the industry.

2. In the first half of 2024 due to the changes in the prices of the trading financial assets held by the

Company the Company's net loss on changes in fair value was approximately RMB-175 million

which affected the net profit attributable to its shareholders.

3. In the first half of 2024 based on the principle of prudence the Company set aside provisions for

asset impairment of approximately RMB255 million in accordance with accounting policies and

estimates resulting in a decrease in profit.

4. In the first half of 2024 the Company's semiconductor business was still at the initial phase of

industrialization. In spite of the heavy investment efficient large-scale production had not been

achieved which affected the Company's overall operating profit.

5. The Company focused on two lines of business "consumer electronics + semiconductor" and

with the industrial development needs taken into account strategically reduced the investment

intensity hence a year-on-year decline in related income.The Board of Directors

Konka Group Co. Ltd.

31 August 2024

5