Konka Group Co. Ltd.FINANCIAL REPORT
For the Six Months Ended 30 June 2021
（Un-audited）
Contents
Auditor’s Report
Balance Shhet
Income Statement
Cash Flow Statement
Statement of Changes in Owners' Equity
Notes to Accounting Statements
Legal representative: Zhou Bin
Head of the accounting work:Li Chunlei
Head of the accounting department: Guo Zhihuag
English Translation for Reference Only. Should there be any discrepancy between the two versions
the Chinese version shall prevail..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
Tre Other i O Non-controlling et
Capital eral Retained Total owners’ equity r
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).)
一、 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
No. Corporate name Abbreviation
10 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
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
No. Corporate name Abbreviation
46 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka
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”)No. Corporate name Abbreviation
80 Jiangsu Konka Special Material Technology Co. Ltd. Jiangsu Konka Special Material
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
No. Corporate name Abbreviation
117 Kangruncheng Environmental Technology (Yantai) Co. Ltd. Kangruncheng Environmental
Technology
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)
No. Corporate name Abbreviation
152 Hefei Chain Kingdom Memory Technologies Co. Limited Hefei Chain Kingdom Memory
Technologies
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 in ①.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.Depreciation Expected net Annual
No. Category Method
period (year) salvage value (%) deprecation (%)
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-term Assets
For non-current financial Assets of fixed Assets projects under construction intangible Assets
with limited service life investing real estate with cost model long-term equity investment of
subsidiaries cooperative enterprises and joint ventures the 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.二、 The Company recognizes deferred income tax assets to the extent of the
taxable income which i t is most l ikely 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.三、 V. Taxation
四、 1. Main Taxes and Tax Rate
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at the tax
VAT 1% 3% 5% 6% 9% 13%
rate and paid the VAT by the amount
Category of taxes Basis Specific situation of the taxes rate
after deducting the deductible
withholding VAT at current period
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 2021.五、 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
79359852.77 202052024.94
in overseas
Note: The ending balance of other currency assets is mainly margin deposits financial
supervision account funds and other deposits subject to usage restrictions. Refer to Note VI-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
618249541.66
or loss
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
Carrying amount Bad debt provision
Category WithdrPropo
awal Carrying value
Amount rtion Amount
proport
(%)
ion (%)
Provision for bad debts
provided individually
Bad debt provision
1527263819.71 100.00 10090428.60 0.66 1517173391.11
made as per portfolio
Of which: Bank
1032634966.93 67.61 1032634966.93
acceptance bill
Commercial
494628852.78 32.39 10090428.60 2.04 484538424.18
acceptance bill
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
2387417262.59 100.00 29237068.63 1.22 2358180193.96
made as per portfolio
Of which: Bank
1345404094.53 56.35 1345404094.53
acceptance bill
Commercial
1042013168.06 43.65 29237068.63 2.81 1012776099.43
acceptance bill
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 Bad debt Withdrawal
Carrying amount
provision 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
Beginning
Category With Collected or Ending balance
balance Write-off or draw reversed
verified
al
Commercial 29237068.63 19146640.03 10090428.60
Changed amount
Beginning With Collected or
Category Write-off or Ending balance balance draw reversed
verified
al
acceptance bill
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 awal Carrying value
Amount Amount
ion (%) 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 value
Amount Amount
ion (%) 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
Beginning balance
Carrying amount Bad debt provision
Category Withdr
Proport awal Carrying value
Amount Amount
ion (%) proport
ion (%)
according to groups
Of which: aging group 3004054396.28 59.66 271291702.62 9.03 2732762693.66
Project payment
646556634.10 12.84 112787848.33 17.44 533768785.77
group
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
H-BUSTERDOBRASILI 17767310.32 17767310.32 100.00 bankrupt and is
expected to be
difficult to
Ending balance
Withdra
Name Carrying Bad debt wal Withdrawal
amount provision proportio reason
n (%)
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
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision
proportion (%)
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 Withdrawal proportion
Carrying amount Bad debt provision
(%)
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
Aging Ending balance
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 cted e-off Decrease
Beginning balance Ending balance
ory Withdrawal or or for other
rever verifi reasons
sed ed
Bad
debt
provisi
on of
1134176300.17 64007725.46 795676.91 1197388348.72
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
Ending balance Beginning balance
Item Amount Proportion Amount Proportion
(%) (%)
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
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.547848.62 547848.62
Ltd.Binzhou Beihai Weiqiao Solid Waste
4400000.00
Treatment Co. Ltd.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
178104342.21 176427511.36
consolidation not under the same
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:
——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
Category
Carrying amount Bad debt provision Carrying value
With
Propo draw
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
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
Withdr
Category Propo
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
Aging Ending balance
1 to 2 years 1445123746.26
2-3 years 143356114.57
3-4 years 6173200.66
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
price reserves /
Item
Carrying amount impairment Carrying value
provision of contract
performance costs
Raw materials 1808248192.19 20090802.48 1788157389.71
Semi-finished
194322474.09 13226031.20 181096442.89
product
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
Beginning balance
Inventory falling
price reserves /
Item
Carrying amount impairment Carrying value
provision of contract
performance costs
Semi-finished
158870091.24 12636819.92 146233271.32
product
Inventory
3389343445.93 249362200.01 3139981245.92
goods
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
Beginning by losing Ending Item
balance Withdrawal Write-off controlling balance
right/other
reasons
Raw
28137287.12 -4614719.70 3431764.94 20090802.48
materials
Semi-fini
shed 12636819.92 589211.28 13226031.20
product
Inventory
249362200.01 14598745.33 54823762.85 209137182.49
goods
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
Sold or disposed in the current period
product carrying value
Inventory The realizable net value was lower than the
Sold in the current period
goods carrying 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
Ending balance
Item Carrying amount Impairment Carrying value
provision
Unsettled advertising
95474154.11 1947672.75 93526481.36
payments
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
49375837.18 1007267.08 48368570.10
payments
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
362837758.69 New engineering projects
but conditional payment projects
Total 362837758.69
(3) Making for impairment provision of contractual assets in the current year
Amount
transferr
Provision made Write-off/Verif
ed back
Item in the current ication in the Reasons
in the
year current year
current
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
40000000.00 75000000.00
investment associated enterprises
Current portion of
29003761.31 37310158.82
long-term receivable Finance leasing amount
Item Ending balance Beginning Nature
balance
Total 69003761.31 112310158.82
(1) Significant debt investment/other debt investment at the year end
Ending balance
Debt investment in Coupon Actual
Par value Expiry Date
rate rate
Yibin OCT Sanjiang Real estate
40000000.00 5.70% 5.70% 2021-10-24
Co. Ltd.Total 40000000.00
(Continued)
Beginning balance
Debt investment in Coupon Actual
Par value Expiry Date
rate rate
Yibin OCT Sanjiang Real estate 2021/4/24
35000000.00
Co. Ltd. 5.70% 5.70%
Yibin OCT Sanjiang Real estate 2021/10/24
40000000.00
Co. Ltd. 5.70% 5.70%
Total 75000000.00
11. Other Current Assets
Item Ending balance Beginning balance
Prepayments and deductible taxes and 1003270717.12
926643711.18
refund of tax for export receivable
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 Bad debt
Carrying amount Carrying value
provision
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
350937230.14 350937230.14
franchise tights
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 Bad debt
Carrying amount Carrying value
provision
Beginning balance
Item Bad debt
Carrying amount Carrying value
provision
Finance leasing amount 44609921.40 44609921.40
Of which: unrealized financing
2526836.56 2526836.56
income
Cash deposits of long-term
41090400.00 41090400.00
receivables
Long-term receivables of
351107041.45 351107041.45
projects with franchise tights
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
Franchise Date of Operatio
Item Type Project scale
rights contract n
PPP Project of Right of
Partial
water supply and charge for
PPP 452802100.00 July 2016 trial
sewage Rushan sewage
operation
Silver Beach disposal
(3) Changes in Long-term Receivables of Projects with Franchise Rights
Decreased
Initial invested Beginning
Item Principal Other Ending balance amount 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
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Konka Ventures Development (Shenzhen) Co.2250590.00 571291.00
Ltd.Nanjing Zhihuiguang Information Technology
1573831.23 60003.31
Research Institute Co. Ltd.Feide Technology (Shenzhen) Co. Ltd. 10671986.45 -318372.70
Shenzhen Kangyue Industrial Co. Ltd. 33146954.42 -446727.83
Foshan Pearl River Media Creative Park
4900000.00 -308496.41
Cultural Development Co. Ltd.Shenzhen Konka Cross-Border Technological
19020.00 -632.96
Innovation Service Co. Ltd.Chengdu Konka Incubator Management Co.254670.00 -74359.99
Ltd.Dongguan Konka Smart Electronic
16172903.60 -929500.60
Technology Co. Ltd.Puchuang Jiakang Technology Co. Ltd. 1399457.69 898750.07
Guoguang Ruilian (Shenzhen) Network
Technology Co. Ltd.Khorgos Yilingfang Information Technology
1795.48 -1795.48
Co. Ltd.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
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Panxu Intelligence Co. Ltd. 50704696.31 391349.14
Beijing Konka Jingyuan Technology Co. Ltd. 766290.97
Dongfang Jiahui (Zhuhai) Asset Management
3027971.50 -307974.19
Co. Ltd.Orient Konka no.1 (zhuhai) private equity
336170619.84 43828800.00 34171344.83 -10322239.82
investment fund (limited partnership)
Tongxiang Wuzhen Kunyu Equity Investment
3500000.00
Co. Ltd.Shenzhen Xiaorui Technology Co. Ltd. 53107714.82 -1135930.87
Weihai Water Environmental Protection
2526483.15 -1518.43
Technology Co. Ltd.Weihai Yiheng Environmental Technology
4812630.25 30224.08
Co. Ltd.Huoqiu Kangrun Kaitian Water Environmental
52434987.50 12435012.50 7497000.00
Protection Co. Ltd.Huarun Environmental Protection Water
17316442.28 391778.04
Treatment Co. Ltd.Binzhou Beihai Weiqiao Solid Waste
182666028.25 17371700.00
Treatment Co. Ltd.Shandong Bishuiyuan Environmental
26390437.98 102188.81
Technology Co. Ltd.Yunnan Hongkang Solid Waste Disposal
2809775.13 -110373.99
Utilization Co. Ltd.Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Shandong Konka Zhijia Electrical Appliances
2148063.47 -1245650.56
Co. Ltd.Henan Konka Zhijia Electrical Appliances
1059137.34 130459.63
Co. Ltd.Anhui Kaikaishijie E-commerce Co. Ltd. 419065032.33
Wanjun Technology (Kunshan) Co. Ltd. 175204642.85 -2046465.83
Kunshan Kangsheng Investment Development
269673264.00 32849354.55
Co. Ltd.Chutianlong Co. Ltd. 650206807.02 4824758.43
Heilongjiang Longkang Zhijia Technology
1060725.79 -3709.66
Co. Ltd.Konka Green Konka Technology 75261304.56 75261304.56
Shaanxi Silu Yunqi Smart Technology Co.17649295.81 -1596222.64
Ltd.Shenzhen Konka Information Network Co.Ltd.Shenzhen Zhongbing Konka Technology Co.2214307.33 -2214307.33
Ltd.Shenzhen Konka Smart Electrical Appliance
3973386.95 -1441954.44
Technology Co. Ltd.Shenzhen Bosheng New Material Co.58400000.00 -2064227.96
Ltd.Shenzhen Yaode Technology Co. Ltd. 219357772.76 -4569192.27
Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Wuhan Tianyuan Environmental Protection
304654243.69 13222348.47
Co. Ltd.Shenzhen Konka Yishijie Commercial Display
81955858.27
Co. Ltd.Chuzhou Konka Technology Industry
49658397.02 -1172317.71
Development Co. Ltd.Chuzhou Kangjin Healthcare Industry
118122798.37 -6410036.65
Development Co. Ltd.Haimen Kangjian Technology Industrial Park
120729335.67 -3070358.71
Operation and Management Co. Ltd.Chuzhou Kangxin Healthcare Industry
187180000.00 -1310518.75
Development Co. Ltd.Dongguan Konka Investment Co. Ltd. 563500000.00 -12122313.26
Chongqing Konka Real Estate Development
49500000.00 -7987220.86
Co. Ltd.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
50000.00
Co. Ltd.Shenzhen Kangpeng Digital Technology Co.6000000.00 -1063135.76
Ltd.Shenzhen Kangene Technology Innovation 900000.00 808.91
Change in the Current Period
Adjustm
ent to
Gain/loss
Investee Beginning balance Investment Cost method to other
New investment recognized at
reduced equity method compreh
equity method
ensive
income
Development Co. Ltd.Dalian Xinguan Technology Co. Ltd. 50000000.00 -1411462.01
Yantai Kangyun Industry Development Co.68185019.88 -78596.04
Ltd.Chongqing Kangyiqing Technology Co. Ltd. 1000000.00
Sichuan Aimijiakang Technology Co. Ltd. 2000000.00
Guangdong Kangyuan Semiconductor Co.3214600.00 213202.98
Ltd.Total 4375833584.65 119428412.50 109432649.39 68185019.88 19335816.88
(Continued)
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Konka Ventures Development (Shenzhen) Co.2821881.00
Ltd.Nanjing Zhihuiguang Information Technology
1633834.54
Research Institute Co. Ltd.Feide Technology (Shenzhen) Co. Ltd. 10353613.75
Shenzhen Kangyue Industrial Co. Ltd. 32700226.59
Foshan Pearl River Media Creative Park
4591503.59
Cultural Development Co. Ltd.Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Shenzhen Konka Cross-Border Technological
18387.04
Innovation Service Co. Ltd.Chengdu Konka Incubator Management Co.180310.01
Ltd.Dongguan Konka Smart Electronic
15243403.00
Technology Co. Ltd.Puchuang Jiakang Technology Co. Ltd. 826052.90 1472154.86
Guoguang Ruilian (Shenzhen) Network
51964.09
Technology Co. Ltd.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
2719997.31
Co. Ltd.Orient Konka no.1 (zhuhai) private equity
335505835.19
investment fund (limited partnership)
Tongxiang Wuzhen Kunyu Equity Investment
3500000.00
Co. Ltd.Shenzhen Xiaorui Technology Co. Ltd. 51971783.95 33684243.40
Weihai Water Environmental Protection
2524964.72
Technology Co. Ltd.Weihai Yiheng Environmental Technology 4842854.33
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Co. Ltd.Huoqiu Kangrun Kaitian Water Environmental
72367000.00
Protection Co. Ltd.Huarun Environmental Protection Water
17708220.32
Treatment Co. Ltd.Binzhou Beihai Weiqiao Solid Waste
200037728.25
Treatment Co. Ltd.Shandong Bishuiyuan Environmental
26492626.79
Technology Co. Ltd.Yunnan Hongkang Solid Waste Disposal
2699401.14
Utilization Co. Ltd.Shandong Konka Zhijia Electrical Appliances
902412.91
Co. Ltd.Henan Konka Zhijia Electrical Appliances
1189596.97
Co. Ltd.Anhui Kaikaishijie E-commerce Co. Ltd. 419065032.33
Wanjun Technology (Kunshan) Co. Ltd. 173158177.02
Kunshan Kangsheng Investment Development
302522618.55
Co. Ltd.Chutianlong Co. Ltd. 6720000.00 648311565.45
Heilongjiang Longkang Zhijia Technology
1057016.13 2470398.03
Co. Ltd.Konka Green Konka Technology
Shaanxi Silu Yunqi Smart Technology Co.16053073.17
Ltd.Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Shenzhen Konka Information Network Co.12660222.73
Ltd.Shenzhen Zhongbing Konka Technology Co.Ltd.Shenzhen Konka Smart Electrical Appliance
2531432.51
Technology Co. Ltd.Shenzhen Bosheng New Material Co. Ltd. 56335772.04 18536771.07
Shenzhen Yaode Technology Co. Ltd. 214788580.49
Wuhan Tianyuan Environmental Protection
317876592.16
Co. Ltd.Shenzhen Konka Yishijie Commercial Display
81955858.27
Co. Ltd.Chuzhou Konka Technology Industry
48486079.31
Development Co. Ltd.Chuzhou Kangjin Healthcare Industry
111712761.72
Development Co. Ltd.Haimen Kangjian Technology Industrial Park
117658976.96
Operation and Management Co. Ltd.Chuzhou Kangxin Healthcare Industry
185869481.25
Development Co. Ltd.Dongguan Konka Investment Co. Ltd. 551377686.74
Chongqing Konka Real Estate Development
41512779.14
Co. Ltd.Chongqing Chengda Real Estate Co. Ltd. 28901627.59
Yilifang (Hainan) Technology Co. Ltd. 62026235.03
Change in the Current Period
Closing balance
Cash dividend or
Investee Other equity Impairment Ending balance of impairment
profit distribution Others
changes allowance provision
declared
Shenzhen Morsemi Technology Co. Ltd. 2506343.08
Chongqing Liangshan Enterprise Management
50000.00
Co. Ltd.Shenzhen Kangpeng Digital Technology Co.4936864.24
Ltd.Shenzhen Kangene Technology Innovation
900808.91
Development Co. Ltd.Dalian Xinguan Technology Co. Ltd. 48588537.99
Yantai Kangyun Industry Development Co.68106423.84
Ltd.Chongqing Kangyiqing Technology Co. Ltd. 1000000.00
Sichuan Aimijiakang Technology Co. Ltd. 2000000.00
Guangdong Kangyuan Semiconductor Co.3427802.98
Ltd.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 13028268.90
(Limited Partnership)
Shenzhen Kanghong Dongsheng Investment Partnership (Limited 33559302.86 17754800.00
Partnership)
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment 120000000.00
40000000.00 Partnership (Limited Partnership)
Yibin Kanghui Electronic Information Industry Equity Investment 4000000.00 4000000.00
Partnership (Limited Partnership)
Chuzhou Jiachen Information Technology Consulting Service Partnership 49200000.00 49200000.00
(Limited Partnership)
Yancheng Kangyan Information Industry Investment Partnership (Limited 81167900.00 1050000.00
Partnership)
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 1049891727.86
Partnership (Limited Partnership)
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
Incorporation and under
144589955.57
Konka Yibin Industrial Park processing
Incorporation and under
38753062.88
Konka 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
Original Accumulative Impairment Carrying value
Item
carrying value depreciation provision
Mechanical
15727901.88 4847429.03 1933845.35 8946627.50
equipment
Electronic
1959751.03 1574316.87 385434.16
equipment
Transportation
918103.44 399375.00 518728.44 equipment
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
airm
Original Accumulative Net carrying
Item ent Reason
carrying value depreciation value
prov
ision
New
Konka Yibin construction
78686299.55 742842.69 77943456.86
Industrial Park with pending
certificate
Yikang
Historical
Building 76610752.33 37766687.72 38844064.61
reasons
property
Jingyuan
Historical
Building 20018497.00 9770559.01 10247937.99
reasons
property
Longzhimeng
Pangjiang Street
Under
Property in 6072572.34 1097627.05 4974945.29
processing
Dadong
District
Shenyang
Purification
tank for liquid
Under
waste of 2653000.00 1542056.25 1110943.75
processing
XingDa
HongYe
Total 184041121.22 50919772.72 133121348.5093
(5) Fixed Assets with Restricted Ownership or Use Right
Ending carrying
Item Reasons
value
Housing and buildings of Anhui
152555215.06 Mortgage borrowings
Tongchuang
Machinery equipment of Jiangxi
125466230.01 Finance lease mortgage
Konka
Machinery equipment of Xinfeng
125505890.56 Finance lease mortgage
Microcrystalline
Housing and buildings of Frestec
92281884.82 Finance lease mortgage
Refrigeration
Buildings of Konka Group 71008186.14 Mortgage borrowings
Housing and buildings of XingDa
39196058.38 Mortgage borrowings
HongYe
Machinery equipment of Xingda
22632718.61 Finance lease mortgage
Hongye
Machinery equipment of Boluo
11917835.51 Finance lease mortgage
Konka Precision
Factories of Boluo Konka 1292009.75 Mortgage borrowings
As collateral for former shareholder’s
Buildings of Jiangxi Konka 3470635.83
guarantee
Smart machinery equipment and
42136390.95 Mortgage borrowings
other equipment of Jiangsu Konka
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
992181212.43 992181212.43 878298840.85 878298840.85
drainage basins in the city of Donggang
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
737489434.58 737489434.58 736291181.05 736291181.05
Ankang County
PPP Project of Lushan Shahe Ecological
717639485.24 717639485.24 712003094.27 712003094.27
Rehabilitation and Improvement (Phase I)
PPP Project of Funan Sewage Treatment 742364507.22 742364507.22 698546462.73 698546462.73
Comprehensive water environment improvement
703684828.74 703684828.74 693071428.99 693071428.99
project in Mengcheng County Anhui Province
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
352496648.43 352496648.43 294709246.41 294709246.41
Danhe River Basin in Gaoping City
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
267527695.92 267527695.92 265143141.30 265143141.30
Chongzhou
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
225609993.83 225609993.83 170314313.43 170314313.43
Workshops
Franchise project of disposal of kitchen waste in
215967649.86 215967649.86 159947876.21 159947876.21
Gaoling Xi'an
Water supply and water resources development
45443426.54 45443426.54 129766743.81 129766743.81
project in Changning
R&D equipment construction project of Chongqing
170072455.78 170072455.78 129657635.39 129657635.39
Optoelectronic Research Institute
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
878298840.85 113882371.58 992181212.43
drainage basins in the city of Donggang
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
736291181.05 1198253.53 737489434.58
Ankang County
PPP Project of Lushan Shahe Ecological
712003094.27 5636390.97 717639485.24
Rehabilitation and Improvement (Phase I)
PPP Project of Funan Sewage Treatment 698546462.73 43818044.49 742364507.22
Comprehensive water environment improvement
693071428.99 10613399.75 703684828.74
project in Mengcheng County Anhui Province
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
294709246.41 57787402.02 352496648.43
Danhe River Basin in Gaoping City
Water environment improvement project in downtown
265143141.30 2384554.62 267527695.92
Chongzhou
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 Ending balance
Other
to long-term
decrease
assets
Construction of Suining Electronic Industrial Park
170314313.43 55295680.40 225609993.83
Workshops
Franchise project of disposal of kitchen waste in
159947876.21 56019773.65 215967649.86
Gaoling Xi'an
Water supply and water resources development project
129766743.81 2840412.98 87163730.25 45443426.54
in Changning
R&D equipment construction project of Chongqing
129657635.39 40414820.39 170072455.78
Optoelectronic Research Institute
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 Of which: the Capitalization
Engineerin
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 Of which: the Capitalization
Engineerin
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 Of which: the Capitalization
Engineerin
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 Of which: the Capitalization
Engineerin
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 use Patent 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 use Patent 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 use Patent 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 use Patent 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
5181396.68 Under processing
Jiangxi High Transparent Substrate
Total 5181396.68
(3) Significant Intangible Assets
Remaining amortization
Item Ending carrying value
period (year)
Land usage right of Fenggang Konka
196005772.67 48.17
Intelligent Industrial Park
Frestec Zhijia land use right 95059550.03 49.25
Franchise rights of sewage treatment in
93282525.01 21.00
Laizhou
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 #
55369010.66 47.42
land
Land usage right of Liaoyang Kangshun 35200836.96 49.67
Land usage right of Anhui Konka 3#
19011338.67 47.33
land
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 #
55369010.66 As collateral for loan
land
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
9000000.00 Finance lease mortgage
know-how
Original shareholder guarantee
Land usage right of Jiangxi Konka 10390478.17
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 Amount Transferred balance
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
24678629.46 5827040.99 9806693.49 31092.74 20667884.22
expense
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
Deductible Deferred income Deductible Deferred income Item
temporary tax liabilities temporary tax liabilities
difference difference
assets assets
Deductible
4384823983.52 945470014.66 3454342497.93 765781935.91
losses
Assets
impairment 1672761604.43 357408076.44 1672345584.63 355173623.87
provision
Deferred
52695094.43 12741367.26 302984312.52 75408820.37
Income
Accrued
133171310.14 25777071.72 206844865.32 40844897.61
expenses
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
Taxable Deferred income Deferred income Item Taxable 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 Impairment
Carrying amount Carrying value
provision
Prepayment for land-purchase 1180082994.42 1180082994.42
Prepaid amount for engineering
31451170.53 31451170.53
equipment and other long-term assets
Entrusted loans 11225866.61 11225866.61
Construction of government projects 23463565.16 23463565.16
Total 1246223596.72 1246223596.72
(Continued)
Beginning balance
Item Impairment
Carrying amount Carrying value
provision
Prepayment for land-purchase 1538728032.15 1538728032.15
Prepaid amount for engineering
247719684.59 247719684.59
equipment and other long-term assets
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 Unpaid/Un-carry-over
Ending balance
reason
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
Not meet the settlement
Rushan Water Group Co. Ltd. 96558100.00
conditions
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 30132787.04 4539686.05
4887689.95 29784783.14
expense
Of which: Medical 26598717.72 712285.65
1257574.78 26053428.59
insurance premiums
Work-related 1283122.70 57975.39
87286.29 1253811.80
injury insurance
Maternity 2250946.62 3769425.01
3542828.88 2477542.75
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 62119767.22 680421.65
2188388.21 60611800.66
benefits
Unemployment 1560846.78 82192.74
94887.61 1548151.91
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
39095155.47 23350524.40
borrowings
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
199491442.79 432420000.00
notes
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
4992708333.32 4993212788.32
bonds
Less: Current portion of bonds
2000000000.00
payable
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 (note ①) 2+1
1000000000.00 2019-1-14 996500000.00 998899371.13
years
19Konka02 (note ②) 1500000000.00 2019-1-14 3 years 1494750000.00 1498349056.69
19Konka03 (note ③) 2+1
500000000.00 2019-6-3 498250000.00 499220387.86
years
19Konka04 (note ④) 500000000.00 2019-6-3 3 years 498250000.00 499220387.86
19Konka05 (note ⑤) 2+1
800000000.00 2019-7-22 797200000.00 798679245.24
years
19Konka06 (note ⑥) 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
① 1249999.96 1100628.87 1000000000.00 - (note )
19Konka02
② 36250000.02 825471.72 1499174528.41 (note )
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
③ 9250000.00 779612.14 500000000.00 - (note )
19Konka04
④ 11619444.45 275157.24 499495545.10 (note )
19Konka05
⑤ 17616666.65 440251.56 799119496.80 (note )
19Konka06
⑥ 15993055.53 385220.10 699229559.64 (note )
21Konka01（ ⑦） 996500000.00 21432777.79 748427.69 997248427.69 note
21Konka02（ ⑧） 498250000.00 2277777.78 190775.68 498440775.68 note
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
5178477.38 5248309.14
defined contribution plans
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
446900524.64 35513702.05 261258151.57 221156075.12
subsidies 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
30000000.00 10000000.00 40000000.00 与收益相关
projects
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
6702019.17 6702019.17
premium
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
Less: Attributable to
Beginning Income before income in period and Attributable to
Item Income owners of the Ending balance
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
-7786813.26 -3033357.17 -2069129.84 -964227.33 -9855943.10
from the translation of
Reporting Period
Less: Less: Recorded in
Recorded in other
other comprehensive
comprehensive income in prior
Less: Attributable to
Beginning Income before income in period and Attributable to
Item Income owners of the Ending balance
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
-16583042.42 -1547270.99 -583043.66 -964227.33 -17166086.08
Comprehensive Income
46. Surplus Reserves
Item Beginning balance Increased Decreased Ending balance
Statutory surplus
973502519.62 973502519.62
reserves
Discretional
238218590.05 238218590.05
surplus reserves
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
477633250.14
as the parent
Retained incomes carried forward from other
-1628195.00
comprehensive income
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
12184495984.54 12079110369.50 9566197970.86 9423055276.96
trading
business
Color TV
3190601881.06 3017183364.20 3218278547.14 2742839819.16
business
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
88668.35 98454282.86 88668.35
non-current assets
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
88668.35 -145717.14 88668.35
income
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
237884.42 237884.42
retirement gains
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
recorded into the
Same Period of
Item Reporting Period current
last year
non-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
150944828.97
and productive living assets
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
738614.79
negative)
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
10226485.06
negative)
Increase in deferred income tax liabilities (“-” -5615859.48
-5187674.24
means decrease)
Decrease in inventories (gains: negative) -648533766.41 -228342968.29
Decrease in accounts receivable generated -266870721.39
-485454160.52
from operating activities (gains: negative)
Increase in accounts payable used in operating -580252243.46
-542846678.70
activities (decrease: negative)
Other -247958151.57 22405878.36
Net cash generated from/used in operating -1284761222.03
-1076366927.48
activities
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
138930000.00
of subsidiaries in the Current Period
Of which: Yantai Kangyun
34510000.00
Shenzhen Kangxin Property
104420000.00
Less: cash and cash equivalents held by subsidiaries on the date of
5786319.88
losing control power
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
5159985226.06 4298056113.24
equivalents
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 91800.00
income/Other income
Total 513248594.65 473148976.03
(2) Return of Government Subsidy
No such cases in the Reporting Period.六、 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 of Recognition method Amount of other
Fair value of
equity 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
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
100000000.00 90.10
Electronics 2021-5-7 established
Kowin Memory (Hong Newly
HKD 10000000.00 100.00
Kong) 2021-2-2 established
Industrial and Trade Newly
50000000.00 100.00
Technology 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
established
Protection 2021-4-21
Kangruncheng
Newly
Environmental 10000000.00 26.01
established
Technology 2021-3-8
Shaanxi Konka Newly
120000000.00 51.00
Intelligent 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
七、 VIII. Equity in Other Ent ities
1. Equity in Subsidiary
(1) Subsidiaries
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place 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
Guangdong Guangdong Establishme
15 Boluo Konka Manufacturing industry 100
Boluo Boluo nt or
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
investment
Establishme
Fujian Fujian
16 Xiamen Dalong Commerce 69.23 nt or
Xiamen Xiamen
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
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Establishme
Guangdong Guangdong
30 Konka Suyuan Commercial service 51 nt or
Shenzhen Shenzhen
investment
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 100
information technology nt or
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
service investment
Establishme
Design of integrated
45 Hefei KONSEMI Anhui Hefei Anhui Hefei 51 nt or
circuit
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
Establishme
Guangdong Guangdong
51 Shenzhen Nianhua Commercial service 100 nt or
Shenzhen Shenzhen
investment
Establishme
Guangdong Guangdong
52 Wankaida Software development 100 nt or
Shenzhen Shenzhen
investment
Shenzhen
Establishme
Chuangzhi Guangdong Guangdong
53 Wholesale industry 100 nt or
Electrical Shenzhen Shenzhen
investment
Appliances
Establishme
Suining Jiarun Sichuan Sichuan
54 Real estate industry 100 nt or
Property Suining Suining
investment
Establishme
Konka Electrical Guangdong Guangdong Manufacturing
55 100 nt or
Appliances Shenzhen Shenzhen industry、Commerceinvestment
Establishme
Guangdong Guangdong
56 E2info Information service 95.78 nt or
Shenzhen Shenzhen
investment
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Establishme
Hainan Hainan
57 E2info (Hainan) Information service 95.78 nt or
Haikou Haikou
investment
Establishme
Anhui Anhui
58 Anhui Konka Manufacturing industry 78 nt or
Chuzhou Chuzhou
investment
Establishme
Anhui Anhui
59 Kangzhi Trade Wholesale industry 78 nt or
Chuzhou Chuzhou
investment
Establishme
Telecommunicatio Guangdong Guangdong
60 Manufacturing industry 75 25 nt or
n Technology Shenzhen Shenzhen
investment
Establishme
China Hong China Hong
61 Konka Mobility Manufacturing industry 100 nt or
Kong Kong
investment
Establishme
Guangdong Guangdong
62 Dongguan Packing Manufacturing industry 75 25 nt or
Dongguan Dongguan
investment
Establishme
Guangdong Guangdong
63 Dongguan Konka Manufacturing industry 75 25 nt or
Dongguan Dongguan
investment
Establishme
Suining Konka Sichuan Sichuan
64 Wholesale industry 100 nt or
Smart Suining Suining
investment
Chongqing
Research and Establishme
Optoelectronic
65 Chongqing Chongqing experimental 75 nt or
Technology
development investment
Research Institute
Establishme
Sichuan Sichuan
66 Yibin Kangrun Retail industry 67 16.83 nt or
Yibin Yibin
investment
Electrical machinery Establishme
Ningbo Khr Zhejiang Zhejiang
67 and equipment 60 nt or
Electric Appliance Ningbo Ningbo
manufacturing investment
Establishme
Jiangxi Jiangxi Manufacturing and
68 Jiangxi Konka 51 nt or
Jiujiang Jiujiang processing
investment
Establishme
Jiangsu Konka Jiangsu Jiangsu
69 Wholesale industry 51 nt or
Special Material Yancheng Yancheng
investment
Establishme
Xinfeng Jiangxi Jiangxi Manufacturing and
70 51 nt or
Microcrystalline Nanchang Nanchang processing
investment
71 Konka Huanjia Liaoning Liaoning Renewable resources 51 Establishme
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Dalian Dalian processing trade nt or
investment
Technology promotion Establishme
Konka Huanjia Henan Henan
72 and application service 51 nt or
(Henan) Lankao Lankao
industry investment
Environmental Establishme
Shandong Shandong
73 Econ Technology technology service 51 nt or
Yantai Yantai
industry investment
Econ Environmental Establishme
Sichuan Sichuan
74 Environmental technology service 51 nt or
Chengdu Chengdu
Engineering industry investment
Environmental Establishme
75 Beijing Econ Beijing Beijing technology service 51 nt or
industry investment
Environmental Establishme
Binzhou Econ Shandong Shandong
76 technology service 51 nt or
Zhongke Binzhou Binzhou
industry investment
Environmental Establishme
Dayi Kangrun Sichuan Sichuan
77 technology service 51 nt or
Water Chengdu Chengdu
industry investment
Research and Establishme
Tingyuan
78 Shanghai Shanghai experimental 51 nt or
Environmental
development investment
Environmental Establishme
79 Shanghai Jiyi Shanghai Shanghai technology service 51 nt or
industry investment
Environmental Establishme
Kangrunhong Shandong Shandong
80 technology service 51 nt or
Environmental Yantai Yantai
industry investment
Environmental Establishme
Donggang Liaoning Liaoning
81 technology service 50.70 nt or
Kangrun Dandong Dandong
industry investment
Environmental
Establishme
Shanxi Shanxi protection and
82 Gaoping Kangrun 48.45 nt or
Jincheng Jincheng environment
investment
management
Environmental
Establishme
Shaanxi Shaanxi protection and
83 Xi’an Kangrun 48.45 nt or
Xi’an Xi’an environment
investment
management
Establishme
Changning Hunan Hunan Water production and
84 45.89 nt or
Kangrun Hengyang Hengyang supply industry
investment
85 Lushan Kangrun Henan Henan Environmental 45.44 Establishme
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Environmental Pingdingshan Pingdingshan protection and nt or
environment investment
management
Environmental
Establishme
Tongchuan Shaanxi Shaanxi protection and
86 45.39 nt or
Kangrun Honghui Tongchuan Tongchuan environment
investment
management
Environmental Establishme
Shandong Shandong
87 Rushan Econ technology service 44.37 nt or
Weihai Weihai
industry investment
Establishme
Mengcheng Anhui Anhui Water Conservancy
88 43.35 nt or
Kangrun Bozhou Bozhou Management Industry
investment
Environmental
Establishme
Chongzhou Sichuan Sichuan protection and
89 42.67 nt or
Kangrun Chongzhou Chongzhou environment
investment
management
Environmental Establishme
Suining Pengxi Sichuan Sichuan
90 technology service 40.75 nt or
Kangrun Suining Suining
industry investment
Environmental
Establishme
Funan Kangrun Anhui Anhui protection and
91 40.55 nt or
Water Fuyang Fuyang environment
investment
management
Environmental Establishme
Subei Kangrun Gansu Gansu
92 technology service 39.78 nt or
Water Jiuquan Jiuquan
industry investment
Establishme
Shanxi Shanxi Water production and
93 Linfen Kangrun 39.24 nt or
Linfen Linfen supply industry
investment
Environmental
Establishme
Wuhan Runyuan Hubei Hubei protection and
94 35.70 nt or
Wastewater Wuhan Wuhan environment
investment
management
Environmental Establishme
Shandong Shandong
95 Binzhou Weiyijie technology service 35.70 nt or
Binzhou Binzhou
industry investment
Environmental Establishme
Binzhou Beihai Shandong Shandong
96 technology service 24.99 nt or
Jingmai Binzhou Binzhou
industry investment
Environmental Establishme
Shandong Shandong
97 Chunzhiran technology service 35.70 nt or
Yantai Yantai
industry investment
98 Lairun Holding Shandong Shandong Environmental 30.60 Establishme
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Yantai Yantai technology service nt or
industry investment
Environmental Establishme
Shandong Shandong
99 Binhai Wastewater technology service 30.60 nt or
Yantai Yantai
industry investment
Lairun Environmental Establishme
Shandong Shandong
100 Environmental technology service 27.54 nt or
Yantai Yantai
Protection industry investment
Environmental
Establishme
Shandong Shandong protection and
101 Lairun Wastewater 24.14 nt or
Yantai Yantai environment
investment
management
Shaanxi Shaanxi Establishme
Public Facilities
102 Xixian Kangrun Xixian New Xixian New 26.01 nt or
Management Industry
Area Area investment
Environmental
Establishme
Shaanxi Shaanxi protection and
103 Ankang Kangrun 26.01 nt or
Ankang Ankang environment
investment
management
Establishme
Bokang Shandong Shandong Internet and related
104 26.01 nt or
Renewable Yantai Yantai services
investment
Establishme
Pengrun Guangdong Guangdong
105 Retail industry 51 nt or
Technology Shenzhen Shenzhen
investment
Establishme
China Hong China Hong
106 Jiaxin Technology Retail industry 51 nt or
Kong Kong
investment
Establishme
Zhejiang Zhejiang Wholesale and retail
107 Konka Ronghe 51 nt or
Jiaxing Jiaxing industry
investment
Recycling processing Establishme
Chongqing
108 Chongqing Chongqing and sales of renewable 51 nt or
Kangxingrui
resources investment
Chongqing
Dismantling and Establishme
Kangxingrui
109 Chongqing Chongqing utilization of scrapped 51 nt or
Automobile
cars investment
Recycling
Establishme
Guangdong Guangdong
110 Konka Unifortune Retail industry 51 nt or
Shenzhen Shenzhen
investment
Establishme
China Hong China Hong
111 Jiali International Retail industry 51 nt or
Kong Kong
investment
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Establishme
Sichuan Sichuan
112 Kangjiatong Service industry 51 nt or
Yibin Yibin
investment
Comprehensive Establishme
Kanghong (Yantai) Shandong Shandong
113 utilization of waste 51 nt or
Environmental Yantai Yantai
resources industry investment
Jiangkang Research and Establishme
114 (Shanghai) Shanghai Shanghai experimental 51 nt or
Technology development investment
Research and Establishme
Konka Intelligent Guangdong Guangdong
115 experimental 51 nt or
Manufacturing Shenzhen Shenzhen
development investment
Establishme
Shandong Shandong
116 Yantai Laikang Commercial service 51 nt or
Yantai Yantai
investment
Establishme
Hainan Hainan
117 Konka Material Commercial service 51 nt or
Haikou Haikou
investment
Establishme
Guangdong Guangdong Other organization
118 Konka Ventures 51 nt or
Shenzhen Shenzhen management services
investment
Establishme
Yibin Konka Sichuan Sichuan
119 Commercial service 51 nt or
Incubator Yibin Yibin
investment
Other professional Establishme
Shandong Shandong
120 Yantai Konka consultation and 51 nt or
Yantai Yantai
investigation investment
Establishme
Sichuan Sichuan
121 Chengdu Anren Commercial service 51 nt or
Chengdu Chengdu
investment
Establishme
Konka Enterprise Guizhou Guizhou Corporate Headquarters
122 51 nt or
Service Guiyang Guiyang Management
investment
Establishme
Jiangsu Jiangsu Entrepreneurship Space
123 Chuanghui Smart 40.80 nt or
Nanjing Nanjing Service
investment
Establishme
Konka Guangdong Guangdong
124 Commercial service 51 nt or
Eco-Development Shenzhen Shenzhen
investment
Establishme
Germany Germany
125 Konka Europe International commerce 100 nt or
Frankfurt Frankfurt
investment
China Hong China Hong Establishme
126 Hong Kong Konka International commerce 100
Kong Kong nt or
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
investment
Establishme
China Hong China Hong
127 Hongdin Trading International commerce 100 nt or
Kong Kong
investment
Establishme
Konka North America America
128 International commerce 100 nt or
America California California
investment
Establishme
Kanghao
129 Egypt Cairo Egypt Cairo International commerce 67 nt or
Technology
investment
Establishme
China Hong China Hong
130 Hongdin Invest Investment holding 100 nt or
Kong Kong
investment
Chain Kingdom Establishme
China Hong China Hong
131 Memory International commerce 51 nt or
Kong Kong
Technologies investment
Chain Kingdom
Establishme
Memory Guangdong Guangdong
132 Wholesale industry 51 nt or
Technologies Shenzhen Shenzhen
investment
(Shenzhen)
Hefei Chain Establishme
133 Kingdom Memory Anhui Hefei Anhui Hefei Information service 51 nt or
Technologies investment
Establishme
China Hong China Hong
134 Konka Smartech International commerce 61 nt or
Kong Kong
investment
Establishme
China Hong China Hong
135 Hongjet Service industry 51 nt or
Kong Kong
investment
Computer
communications and Establishme
Jiangsu Jiangsu
136 Nantong Hongdin other electronic 100 nt or
Nantong Nantong
equipment investment
manufacturing
Establishme
Anhui Anhui Non-metallic mineral
137 Chuzhou Konka 94.90 nt or
Chuzhou Chuzhou products industry
investment
Establishme
Shaanxi Shaanxi
138 Xi'an Huasheng Real estate industry 66 nt or
Xi’an Xi’an
investment
Establishme
Konka Soft Sichuan Sichuan Special equipment
139 95 nt or
Electronic Suining Suining manufacturing industry
investment
Holding
Serial Main percentage
Registration Way of
numbe Name operating Nature of business (%)
place gaining
r place Direct Indirec
ly tly
Establishme
Konka Hongye Sichuan Sichuan Special equipment
140 90.10 nt or
Electronics Suining Suining manufacturing industry
investment
Computer
communications and Establishme
Kowin Memory China Hong China Hong
141 other electronic 100 nt or
(Hong Kong) Kong Kong
equipment investment
manufacturing
Establishme
Industrial and Guangdong Guangdong
142 Wholesale industry 100 nt or
Trade Technology Shenzhen Shenzhen
investment
Technology promotion Establishme
Hunan Hunan
143 Konka Huazhong and application service 100 nt or
Changsha Changsha
industry investment
Environmental
Establishme
Yibin Kangrun Sichuan Sichuan protection and
144 82.19 nt or
Medical Yibin Yibin environment
investment
management
Yibin Kangrun Research and Establishme
Sichuan Sichuan
145 Environmental experimental 53.69 nt or
Yibin Yibin
Protection development investment
Jiangxi High Establishme
Jiangxi Jiangxi Manufacturing and
146 Transparent 51.00 nt or
Jiujiang Jiujiang processing
Substrate investment
Environmental Establishme
Weifang Sihai Shandong Shandong
147 technology service 32.09 nt or
Kangrun Weifang Weifang
industry investment
Kangruncheng Establishme
Shandong Shandong
148 Environmental Commercial service 26.01 nt or
Yantai Yantai
Technology investment
Electrical machinery Establishme
Shaanxi Konka Shaanxi Shaanxi
149 and equipment 51.00 nt or
Intelligent Xi’an Xi’an
manufacturing investment
Computer
communications and Establishme
Kangxin Shandong Shandong
150 other electronic 100 nt or
Semiconductor Yantai Yantai
equipment investment
manufacturing
Note: The indirect shareholding of the Company shall be the penetration ratio of the subsidiary
enjoyed by the Company at the consolidation level and belongs to the final equity share of the
subsidiary enjoyed by the Company.
(2) Significant Non-wholly-owned Subsidiary
Name Sharehold The profit or loss Declaring Balance of
ing attributable to dividends non-controlling
proportio the distributed to interests at the
n of non-controlling non-controlling period-end
non-contr interests interests
olling
interests
(%)
Econ Technology 49.00% 69943521.22 1099227297.92
Chain Kingdom
49.00% 5832692.06 66139968.40
Memory Technologies
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Ending balance
Name
Current assets Non-current assets Total assets Current liabilities Non-current liability Total liabilities
Econ Technology 5477220513.79 9465339087.97 14942559601.76 8785637395.05 4447674810.71 13233312205.76
Chain Kingdom
Memory 1146313795.10 1601639.67 1147915434.77 1011442224.13 1493683.30 1012935907.43
Technologies
(Continued)
Beginning balance
Name Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liability
Econ Technology 4462132589.77 8755726357.81 13217858947.58 8703704732.25 2962052834.96 11665757567.21
Chain Kingdom
Memory 1207762181.65 151871.86 1207914053.51 1084837979.38 1084837979.38
Technologies
(Continued)
Reporting Period
Name Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Econ Technology 987086128.04 128453230.52 128453230.52 -634712360.70
Chain Kingdom Memory Technologies 3756519723.85 13367681.89 11903453.19 80536781.65
(Continued)
Same period of last year
Name Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Econ Technology 725770854.14 96019839.22 96019839.22 -189595823.45
Chain Kingdom Memory Technologies 1974917750.88 12234256.61 14102950.22 -134524608.11
2. Changes in the share of owners' equity in subsidiaries this period have no impact on equity.3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Holding percentage Accounting
(%) treatment of
Main
Registration Nature of the investment
Name operating
place business to joint venture
place Directly Indirectly or associated
enterprise
Dongfang
Konka No.1
(Zhuhai) Investment
Zhuhai Zhuhai 49.95 Equity method
Private Equity management
Investment
Fund (LP)
Shenzhen Electronic
Jielunte Equipment
Technology Shenzhen Shenzhen Manufacturing 42.79 Equity method
Co. Ltd.
(2) Main Financial Information of Significant Associated Enterprise
Ending balance/Reporting Period
Dongfang Konka No.1 (Zhuhai) Shenzhen Jielunte Technology
Item
Private Equity Investment Fund Co. Ltd.(LP)
Current assets 681199562.63 252917231.01
Non-current assets 222436194.89
Total assets 681199562.63 475353425.90
Current liabilities 100829.98 249422722.74
Non-current liability 17927509.79
Total liabilities 100829.98 267350232.53
Equity of non-controlling interests 9141304.07
Equity attributable to shareholders 198861889.30
681098732.65
of the Company as the parent
Book value of equity investment in 335505835.19 91163534.11
associated enterprises
Operating revenue 227686845.28
Finance costs -281006.45 2748106.23
Income tax expense -1440602.70
Net profit -28114379.69 3684846.93
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -28114379.69 3684846.93
Dividends received from the joint
venture in the current period
(Continued)
Beginning balance/Same period of last year
Dongfang Konka No.1 (Zhuhai) Shenzhen Jielunte Technology
Item
Private Equity Investment Fund Co. Ltd.(LP)
Current assets 686710061.46 271865221.76
Non-current assets 227090375.33
Total assets 686710061.46 498955597.09
Current liabilities 285530.00 276139120.51
Non-current liability 18498130.14
Total liabilities 285530.00 294637250.65
Equity of non-controlling interests 10008858.78
Equity attributable to shareholders 194309487.66
686424531.46
of the Company as the parent
Book value of equity investment in 89187905.40
336170619.84
associated enterprises
Operating revenue 181530263.84
Finance costs -74102.12 1715621.18
Income tax expense -1295366.94
Net profit -4629057.58 3589222.29
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -4629057.58 3589222.29
Dividends received from the joint
venture in the current period
(3) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Item Ending balance/Reporting Beginning balance/The
Associated enterprise: Period Same period of last year
Total carrying value of investment 4039134762.32 3950475059.41
The total of following items
according to the shareholding
--Net profit 27682427.99 48924704.74
proportions
--Other comprehensive income
--Total comprehensive income 27682427.99 48924704.74
八、 IX. The Risk Related to Financial Instruments
The Company’s main financial instruments include borrowings accounts receivable accounts
payable trading financial assets and liabilities etc. Please refer to Note VI for detailed
descriptions of various financial instruments. Risks related to these financial instruments and risk
management policies the Company has adopted to reduce these risks are described as follows.The Company management manages and monitors the risk exposure in order to ensure the above
risks to be controlled in a limited scope.1. Various Risk Management Objectives and Policies
The goals of the Company engaged in the risk management is to achieve the proper balance
between the risks and benefits reduced the negative impact to the Company operating
performance risk to a minimum maximized the profits of shareholders and other equity investors.Based on the risk management goal the basic strategy of the Company's risk management is
determine and analyze the various risks faced by the Company set up the bottom line of risk and
conducted appropriate risk management and timely supervised various risks in a reliable way and
controlled the risk within the range of limit.
（1）Market Risk
1）Foreign Exchange Risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in exchange
rate. The foreign exchange risk borne by the Company is related to USD. Except the procurement
and sales by USD for several subsidiaries of the Company the other main businesses of the
Company were settled by RMB. The foreign exchange risks produced by the assets and liabilities
balance may affect the business performance of the Company. As of 30 June 2021 except for the
assets or liabilities mentioned in the table below the assets and liabilities of the Company are
mainly the balance of RMB.Item Period-end Period-begin
Cash and cash
95989561.32
equivalents 84160593.16
Accounts receivable 134495088.51 132221173.92
Other receivables 39323079.55 135938277.17
Interest receivables 25006.06
Short-term borrowings 84416347.52 59159714.38
Accounts payable 31338417.26 42417352.11
Other payables 3036214.29
Interest payable 325559.34 99200.24
The company pays close attention to the impact of exchange rate changes on the company's
foreign exchange risk and requires major companies in the group that purchase and sell in
foreign currency to pay attention to the changes in foreign currency assets and liabilities manage
the group's foreign currency net asset exposure in a unified way implement single currency
settlement and reduce the scale of foreign currency assets and liabilities so as to reduce foreign
exchange risk exposure.2）Interest Rate Risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments arising from changes in market interest rates. Interest-bearing financial instruments
with fixed interest rate may bring the fair value interest rate risk to the Company while those with
floating interest rate may bring the cash flow interest rate risk to the Company.The Company
bears interest rate risk due to interest rate changes of interest bearing financial assets and
liabilities. The Company's interest bearing financial assets are mainly bank deposits of which the
variable interest rate is mostly short-term while the interest bearing financial liabilities are
mainly bank loans and corporate bonds. The Company will determine the proportion between the
financial instruments with fixed interest rate and those with floating interest rate in combination
with market environment and maintain an appropriate portfolio of financial instruments through
regular review and monitoring.
（2）Credit Risk
As of 30 June 2021 the maximum credit risk exposure that may cause financial losses to the
Company mainly came from losses generated from the Company’s financial assets due to failure
of the other party in a contract to perform its obligations and the financial guarantee undertaken
by the Company including:
The carrying amount of financial assets recognized in the consolidated balance sheet; for financial
instruments measured at fair value the book value reflects their risk exposure but not the
maximum risk exposure and the maximum risk exposure will change with the change of future
fair value.In order to reduce credit risk the company has set up a group to determine the credit limit
conduct credit approval and implement other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition the company reviews the recovery of
each single receivable on each balance sheet date to ensure that sufficient bad debt provision is
made for the unrecoverable amount. Therefore the company's management believes that the
company's credit risk has been greatly reduced.The company's working capital is deposited in banks with high credit rating so the credit risk of
working capital is low.The Company has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable the
Company has no other major credit concentration risk. For the financial assets of the Company
that have been individually impaired please refer to 4. Accounts Receivable and 7. Other
Receivables in Note VI.
（3）Liquidity Risk
Liquidity risk refers to the risk that the company is unable to fulfill its financial obligations on the
due date. The Company manages liquidity risk in the method of ensuring that there is sufficient
liquidity to fulfill debt obligations without causing unacceptable loss or damage to the Company’s
reputation. In order to mitigate the liquidity risk the management of the company has carried out
a detailed inspection on the liquidity of the company including the maturity of accounts payable
and other payables bank credit line and bond financing. The conclusion is that the company has
sufficient funds to meet the needs of the group's short-term debt and capital expenditure.The analysis of the financial assets and financial liabilities held by the Company based on the
maturity period of the undiscounted remaining contractual obligations is as follows:
Amount on 30 June 2021:
Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets
Monetary assets 5808945725.97 5808945725.97
Held-for-trading financial
assets
Notes receivable 1517173391.11 1517173391.11
Accounts receivable 3055810084.71 1042056711.94 451497541.94 226688.00 4549591026.59
Other receivables 862955713.01 1018989394.31 114338151.50 6387673.20 2002670932.02
Long-term receivables 29003761.31 29269369.45 10430400.00 350937230.14 419640760.90
Other current assets 2245900952.01 2245900952.01
Financial liabilities
Short-term borrowings 10660328520.00 10660328520.00
Notes payable 1084027559.56 1084027559.56
Accounts payable 8606110762.20 1054960597.01 170805589.48 10677793.63 9842554742.32
Other payables 1371441277.41 103585634.52 132327996.97 39396443.29 1646751352.19
Payroll payable 231185917.73 231185917.73
Current portion of non-current
4327184538.69 4327184538.69
liabilities
Long-term borrowings 2090919000.00 2291060000.00 1241847132.95 4348118015.53 9971944148.48
Bonds payable 2000000000.00 1497019129.95 1495689203.37 4992708333.32
Long-term payables 209741731.57 173347183.69 270587154.51 28000000.00 681676069.77
2. Sensitivity Analysis
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable
and possible changes of risk variables on current profits/losses or shareholders’ equity. As any
risk variable rarely changes in isolation and the correlation between variables will have a
significant effect on the final impact amount of the change of a risk variable the following
content is based on the assumption that the change of each variable is independent.
（1）Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow
hedging of overseas operations are highly effective.On the basis of the above assumption under the condition that other variables remain unchanged
the impact of reasonable changes in the exchange rate on current profits/losses and equity after
tax is as follows:
30 June 2021
Change in the
Item
exchange rate Impact on shareholders’ Impact on net profit
equity
Appreciation of 1%
USD 7506084.49 4800223.85
against RMB
Depreciation of 1%
USD -7506084.49 -4800223.85
against RMB
九、 X. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Ending fair value
Fair value
Fair value Fair value
Item measuremen
measurement measurement items Total
t items at
items at level 2 at level 3
level 1
I. Consistent fair value
measurement
(I) Trading financial assets
(II) Accounts receivable
111375140.87 111375140.87
financing
(III) Investment in other
debt obligations
(IV) Other equity
25343293.16 25343293.16
instrument investment
(V) Other non-current
2041635385.92 2041635385.92
financial assets
Total assets of consistent
111375140.87 2066978679.08 2178353819.95
fair value measurement
Total liabilities of
consistent fair value
measurement
Total assets of inconsistent
fair value measurement
Ending fair value
Fair value
Fair value Fair value
Item measuremen
measurement measurement items Total
t items at
items at level 2 at level 3
level 1
Total liabilities of
inconsistent fair value
measurement
2. Basis for Determining the Market Prices of Consistent and Inconsistent Fair Value
Measurement Items at Level 1
Input value at Level 1 is the unadjusted quotation in the active market of the same assets or
liabilities that can be obtained on the measurement date.3. Valuation Technique Adopted and Qualitative and Quantitative Information of Important
Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 2
The Level 2 fair value measurement of input value at Level 2 is the input value observable
directly or indirectly of relevant assets or liabilities exclusive of input value at Level 1.4. Valuation Technique Adopted and Qualitative and Quantitative Information of Important
Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 3
Input value at Level 3 is the input value unobservable of relevant assets or liabilities.十、 XI. Related Party and Related-party Transaction
(I) Relationship of Related Party
1. Controlling Shareholder and the Ultimate Controller
(1) Controlling Shareholder and the Ultimate Controller
Sharehold
Voting right
Registr Register ing ratio
ratio to the
Name ation Nature ed to the
Company
place capital Company
(%)
(%)
Shenzh Tourism real estate RMB12
OCT Group Co. Ltd. 29.999997 29.999997
en electronics industry billion
Note: The ultimate controller of the Company is State-owned Assets Supervisor Commission of
the State Council.
(2) The Registered Capital of the Controlling Shareholder and its Changes
Controlling shareholder Beginning balance Increase Decrease Ending balance
OCT Group Co. Ltd. 12000000000.00 12000000000.00
(3) Controlling Shareholders’ Shares or Equity and their Changes
Shareholding amount Shareholding ratio (%)
Controlling shareholder
Ending balance Beginning Percentage Percentage at
OCT Group Co. Ltd. balance at the end of the beginning 722383542.00 722383542.00 29.999997 29.999997
the year of the year
2. Subsidiary
Refer to note VIII-1(1) Subsidiaries for the information of subsidiaries.3. Associated Enterprises and Joint Ventures
Refer to Note VIII-3. (1) Significant Associated Enterprises for details of significant associated
enterprises of the Company. Information on other joint ventures or associated enterprises
occurring connected transactions with the Company in Reporting Period or forming balance due
to connected transactions made in previous period:
Name Relationship with the Company
Puchuang Jiakang Technology Co Ltd. Associated enterprise
Dongguan Konka Electronic Smart Technology Co.Associated enterprise
Ltd.Anhui Kaikai Sihjie E-commerce Co. Ltd. Associated enterprise
Shenzhen Jielunte Technology Co. Ltd. Associated enterprise
Shenzhen Konka E-display Co. Ltd. Associated enterprise
E3info (Hainan) Technology Co. Ltd. Associated enterprise
Wanjun Technology (Kunshan) Co. Ltd. Associated enterprise
Shenzhen Konka Information Network Co. Ltd. Associated enterprise
Henan Konka Smart Electrical Appliance Co. Ltd. Associated enterprise
Shandong Konka Smart Electrical Appliance Co.Associated enterprise
Ltd.Feidi Technology (Shenzhen) Co. Ltd. and its
Associated enterprise
subsidiaries
Shenzhen Konka Smart Electric Appliances
Associated enterprise
Technology Co. Ltd.Shenzhen Yaode Technology Co. Ltd. Associated enterprise
Heilongjiang Longkang Smart Electrical Appliance
Associated enterprise
Co. Ltd.Dongguan Konka Investment Co. Ltd. Associated enterprise
Chuzhou Kangxin Health Industry Development Co.Associated enterprise
Ltd.Yantai Kangyun Industry Development Co. Ltd. Associated enterprise
Chongqing Qingjia Electronics Co. Ltd. Associated enterprise
4. Information on Other Related Parties
Name Relationship with the Company
Yantai Kangyue Investment Co. Ltd. Subsidiary of associated enterprise
Chongqing Konka Fuze Real Estate Co. Ltd. Subsidiary of associated enterprise
Chuzhou Hanshang Electric Appliance Co. Ltd. Minority shareholder of subsidiary
HOHOELECTRICAL&FURNITURECO.LIMI
Minority shareholder of subsidiary
TED
Handian Group Co. Ltd. Minority shareholder of subsidiary
Shenzhen Jinzhu Industry Co. Ltd Minority shareholder of subsidiary
Shenzhen Trade Link Supply Chain
Minority shareholder of subsidiary
Management Co. Ltd.AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Huanjia Group Co. Ltd Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment
Minority shareholder of subsidiary
Co. Ltd.Yantai Qingrunyuan Enterprise Management
Minority shareholder of subsidiary
Center (Limited Partnership)
Yantai Fengqingtai Investment Center (Limited
Minority shareholder of subsidiary
Partnership)
Yantai Baijiangyuan Enterprise Management Minority shareholder of subsidiary
Name Relationship with the Company
Center (Limited Partnership)
Chongqing Ruiyin Renewable Resources Co. The ultimate controller of the minority
Ltd. shareholders of the subsidiary
Chongqing Lvfeng Renewable Resources Co. The company controlled by the ultimate controller
Ltd. of the minority shareholders of the subsidiary
Companies controlled by minority shareholders of
Unifortune (Hong Kong) Co. Ltd.subsidiaries
Dai Rongxing Close family members of minority shareholders
The company controlled by the ultimate controller
Jiangxi Meiji Enterprise Co. Ltd.of the minority shareholders of the subsidiary
(II) Related-party Transactions
(1) Related transactions of purchase and sale of goods provision and acceptance of services
(1) Purchasing goods/receiving services
Same period of last
Related party Content Reporting Period
year
Chongqing Lvfeng Renewable Resources Co.Purchase of goods 1503638982.86
Ltd.Chuzhou Hanshang Electric Appliance Co.Purchase of goods 207875193.30 296887244.25
Ltd.Shenzhen Jielunte Technology Co. Ltd. and its
Purchase of goods 22652611.58 45637929.92
subsidiaries as well as associated enterprises
Shenzhen Konka E-display Co. Ltd. Purchase of goods 26475410.20 5602162.83
OCT Group Co. Ltd. and its subsidiaries and
Purchase of services 23801411.18 16952626.55
associated enterprises
Korea Electric Group Co. Ltd. and its
Purchase of goods 39114787.43 28851808.45
subsidiaries
Puchuang Jiakang Technology Co Ltd. Purchase of goods 163541409.57 184681510.44
HOHOELECTRICAL&FURNITURECO.LI
Purchase of goods 13904763.96 34250250.58
MITED
Dongguan Konka Electronics Smart
Purchase of goods 15400576.70 5755090.87
Technology Co. Ltd.Purchase of goods and
Anhui Kaikai Sihjie E-commerce Co. Ltd. 7817518.74 11561667.28
services
Shenzhen Konka Intelligent Electrical Purchase of goods and
594073.95 2422573.79
Technology Co. Ltd. services
Shenzhen Jinzhu Industry Co. Ltd Purchase of goods 41.95 20346169.14
Shenzhen Trade Link Supply Chain
Purchase of goods 5617295.12
Management Co. Ltd.Shenzhen Konka Information Network Co.Purchase of goods 2630116.46
Ltd.Zhuhai Jinsu Plastic Co. Ltd. Purchase of goods 1082212.94
Purchase of goods and
Subtotal of other related parties 144714.85 4897091.25
services
(2) Information of sales of goods and provision of labor service
Same Period of last
Related party Content Reporting Period
year
Korea Electric Group Co. Ltd. and its
Sales of goods 181904680.78 18375346.08
subsidiaries
Anhui Kaikai Sihjie E-commerce Co. Ltd. Sales of goods and
86107536.96 290281383.41
and its subsidiaries render labor service
OCT Group Co. Ltd. and its subsidiaries and Sales of goods and
78699287.26 103732850.45
associated enterprises render labor service
AUJET INDUSTRY LIMITED Sales of goods 73722203.15
HOHOELECTRICAL&FURNITURECO.LI
Sales of goods 35832964.53 65543689.34
MITED
Shandong Konka Smart Electrical Appliance Sales of goods and
33094053.38 13136006.95
Co. Ltd. render labor service
Chuzhou Hanshang Electric Appliance Co. Sales of goods and
30402393.78 3547295.36
Ltd. render labor service
Shenzhen Jielunte Technology Co. Ltd. and
Sales of goods and
its subsidiaries as well as associated 23197082.93 28339511.01
render labor service
enterprises
Henan Konka Smart Electrical Appliance Co.Sales of goods 18874703.89 14995854.89
Ltd.Shenzhen Konka E-display Commercial Sales of goods and
23556672.37 10812583.47
Display Co. Ltd. render labor service
Dongguan Konka Electronics Smart Sales of goods and
11344197.37 1737574.70
Technology Co. Ltd. render labor service
E3info (Hainan) Technology Co. Ltd. and its Sales of goods and
5124776.56
subsidiaries render labor service
Sales of goods and
Sichuan Huayi Jiakang Technology Co. Ltd. 3211244.93
render labor service
Feidi Technology (Shenzhen) Co. Ltd. and its
Render labor service 1436154.46 1877632.62
subsidiaries
Shenzhen Konka Smart Electrical Apparatus
Render labor service 240681.17 2359154.20
Technology Co. Ltd.Shenzhen Yaode Technology Co. Ltd. Sales of goods 29871066.73
Subtotal of other related parties Sales of goods and
1433408.65 3453093.05
render labor service
2. Information on Related-party Lease
(1) Lease situation
The lease fee The lease fee
confirmed in confirmed in
Leasee Lessee's name Category
the Reporting the same
Period period of last
year
Commercial
OCT Group Co. Ltd. Konka Group Co.residences and 683385.60 871161.20
And its subsidiaries Ltd.office buildings
The lease fee The lease fee
confirmed in confirmed in
Leasee Lessee's name Category
the Reporting the same
Period period of last
year
Konka Ventures Commercial
OCT Group Co. Ltd.Development residences and 10456131.42
And its subsidiaries
(Shenzhen) Co. Ltd. office buildings
3. Information on Related-party Guarantee
(1) The Company was guarantor
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0000) or not
Ningbo
Kanghanrui 5940.00 CNY 2020-7-27 2021-7-26 Not
Electric
Kunshan
Kangsheng
Investment 8064.90 CNY 2019-9-23 2022-9-22 Not
Development
Co. Ltd.Pengrun
1500.00 CNY 2020-8-25 2021-8-25 Not
Technology
Anhui
3000.00 CNY 2020-8-6 2021-8-5 Not
Tongchuang
Anhui
1225.00 CNY 2020-10-19 2021-10-19 Not
Tongchuang
Anhui
729.40 CNY 2021-1-21 2022-1-20 Not
Tongchuang
Anhui
4500.00 CNY 2021-2-25 2022-2-25 Not
Tongchuang
Dongguan
5000.00 CNY 2021-2-8 2022-2-1 Not
Konka
Dongguan
1500.00 CNY 2021-6-23 2031-5-7 Not
Konka
Electronics
5832.23 CNY 2020-7-24 2021-6-28 Not
Technology
Electronics
4796.24 CNY 2020-8-14 2021-9-9 Not
Technology
Electronics
50000.00 CNY 2020-11-16 2021-5-22 Not
Technology
Electronics
3178.67 CNY 2021-2-24 2021-12-21 Not
Technology
Econ
13999.91 CNY 2020-6-5 2021-3-17 Not
Technology
Econ
5000.00 CNY 2020-8-21 2021-8-20 Not
Technology
Econ
5000.00 CNY 2020-9-22 2021-9-21 Not
Technology
Econ 3000.00 CNY 2021-1-29 2022-1-28 Not
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0000) or not
Technology
Econ
5000.00 CNY 2021-3-24 2022-3-23 Not
Technology
Econ
8000.00 CNY 2021-6-8 2022-6-7 Not
Technology
Econ
5000.00 CNY 2021-6-18 2022-6-17 Not
Technology
Telecommunicat
2305.42 CNY 2020-8-26 2021-8-26 Not
ion Technology
Sichuan Konka 4000.00 CNY 2019-3-18 2022-3-19 Not
Yibin OCT
Sanjiang
5258.00 CNY 2019-9-29 2022-9-28 Not
Properties Co.Ltd.XingDa HongYe 5626.00 CNY 2020-11-12 2022-11-12 Not
XingDa HongYe 2000.00 CNY 2020-12-25 2023-12-25 Not
XingDa HongYe 750.00 CNY 2021-5-31 2023-8-31 Not
Boluo Konka
1725.00 CNY 2020-8-19 2023-8-19 Not
Precision
Jiangxi Konka 10900.00 CNY 2019-3-18 2021-9-18 Not
Jiangxi Konka 5500.00 CNY 2019-6-26 2022-6-25 Not
Jiangxi Konka 6500.00 CNY 2019-10-30 2022-10-30 Not
Jiangxi Konka 990.00 CNY 2020-3-20 2022-3-19 Not
Jiangxi Konka 5000.00 CNY 2021-6-26 2022-6-25 Not
Jiangxi Konka 3000.00 CNY 2020-8-4 2021-8-4 Not
Jiangxi Konka 10000.00 CNY 2020-9-29 2023-9-29 Not
Jiangxi Konka 10000.00 CNY 2020-11-6 2023-12-6 Not
Jiangxi Konka 5000.00 CNY 2020-12-21 2022-12-31 Not
Jiangxi Konka 1000.00 CNY 2020-12-30 2023-12-30 Not
Xinfeng
5000.00 CNY 2020-5-19 2023-5-19 Not
Microcrystalline
Xinfeng
3200.00 CNY 2020-5-29 2022-11-29 Not
Microcrystalline
Xinfeng
2100.00 CNY 2020-12-8 2023-12-8 Not
Microcrystalline
Xinfeng
6000.00 CNY 2020-12-28 2021-12-27 Not
Microcrystalline
Xinfeng
6000.00 CNY 2021-6-18 2022-6-17 Not
Microcrystalline
Jiangxi High
Transparent 10000.00 CNY 2019-6-26 2022-6-25 Not
Substrate
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0000) or not
Jiangxi High
Transparent 5000.00 CNY 2019-12-20 2022-12-20 Not
Substrate
Jiangxi High
Transparent 5000.00 CNY 2020-1-8 2023-1-8 Not
Substrate
Jiangxi High
Transparent 5000.00 CNY 2020-1-8 2022-1-8 Not
Substrate
Jiangxi High
Transparent 990.00 CNY 2020-3-20 2022-3-19 Not
Substrate
Jiangxi High
Transparent 5500.00 CNY 2020-5-29 2022-11-29 Not
Substrate
Jiangxi High
Transparent 7000.00 CNY 2020-6-24 2021-6-24 Not
Substrate
Jiangxi High
Transparent 6000.00 CNY 2020-7-14 2023-7-14 Not
Substrate
Hong Kong
16114.20 CNY 2020-12-28 2021-9-9 Not
Konka
Hong Kong
1500.00 USD 2021-2-26 2022-2-26 Not
Konka
Anhui Konka 7000.00 CNY 2020-11-25 2021-11-24 Not
Anhui Konka 15000.00 CNY 2020-12-24 2021-9-2 Not
Anhui Konka 14000.00 CNY 2021-3-25 2022-3-25 Not
Anhui Konka 856.27 CNY 2021-4-2 2022-4-2 Not
Yibin Kangrun 10000.00 CNY 2020-11-13 2024-12-31 Not
Sichuan Konka 10000.00 CNY 2018-5-28 2027-5-24 Not
Rushan Econ 11321.00 CNY 2016-12-29 2026-12-28 Not
Wuhan Runyuan
46672.00 CNY 2020-1-20 2040-1-19 Not
Wastewater
Subei Kangrun
77600.00 CNY 2020-3-10 2035-3-9 Not
Water
Dayi Kangrun
26620.00 CNY 2020-4-29 2035-4-10 Not
Water
Xi’an Kangrun 24571.00 CNY 2020-12-17 2035-12-16 Not
Mengcheng
16000.00 CNY 2021-1-27 2038-1-26 Not
Kangrun
Xi’an Kangrun 15099.69 CNY 2021-2-5 2036-1-31 Not
Tongchuan
3000.00 CNY 2021-3-25 2035-3-24 Not
Kangrun
Guarantee Execution
Secured party amount Currency Start date End date accomplished
(RMB’0000) or not
Honghui
Lushan Kangrun
25000.00 CNY 2021-4-16 2037-4-15 Not
Environmental
(2) The Company was secured party
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’000 ncy
or not
0)
OCT Group Co. Ltd. 150000.00 CNY 2019-1-14 2022-1-14 Not
OCT Group Co. Ltd. 50000.00 CNY 2019-6-3 2022-6-3 Not
OCT Group Co. Ltd. 150000.00 CNY 2019-7-22 2022-7-22 Not
OCT Group Co. Ltd. 150000.00 CNY 2020-6-22 2022-6-22 Not
OCT Group Co. Ltd. 50000.00 CNY 2020-6-24 2022-6-19 Not
OCT Group Co. Ltd. 100000.00 CNY 2021-1-8 2024-1-8 Not
OCT Group Co. Ltd. 50000.00 CNY 2021-5-21 2024-5-21 Not
OCT Group Co. Ltd. 30000.00 CNY 2021-6-24 2024-6-23 Not
Electronics Technology 30000.00 CNY 2020-7-22 2021-7-22 Not
Electronics Technology 30000.00 CNY 2020-8-4 2021-8-3 Not
Electronics Technology 20000.00 CNY 2020-8-6 2020-8-5 Not
Yantai Baijiangyuan Business
Management Center (LP) Yantai
Fengqingtai Investment Center
(LP) Yantai Qingrunyuan Business 54704.58 CNY 2018-8-19 2023-10-11 Not
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Zhu Xinming 2450.00 CNY 2019-12-20 2022-12-20 Not
Zhu Xinming 2450.00 CNY 2020-1-8 2022-1-8 Not
Zhu Xinming 2450.00 CNY 2020-1-8 2023-1-8 Not
Zhu Xinming 4900.00 CNY 2020-9-29 2023-9-29 Not
Zhu Xinming 6370.00 CNY 2020-10-12 2021-10-11 Not
Zhu Xinming 4851.00 CNY 2020-10-13 2021-10-11 Not
Zhu Xinming 1029.00 CNY 2020-12-8 2023-12-8 Not
Zhu Xinming 945.18 CNY 2021-2-19 2022-2-18 Not
Zhu Xinming 1493.69 CNY 2021-3-5 2022-2-18 Not
Zhu Xinming 490.00 CNY 2021-3-9 2022-3-8 Not
Zhu Xinming 504.70 CNY 2021-3-26 2022-3-8 Not
Zhu Xinming 1162.52 CNY 2021-4-9 2022-2-18 Not
Zhu Xinming 651.70 CNY 2021-4-22 2022-4-21 Not
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’000 ncy
or not
0)
Zhu Xinming 296.07 CNY 2021-4-27 2022-4-21 Not
Zhu Xinming 1031.14 CNY 2021-5-18 2022-2-18 Not
Zhu Xinming 304.66 CNY 2021-5-18 2022-3-8 Not
Zhu Xinming 1739.50 CNY 2021-6-7 2021-7-9 Not
Zhu Xinming 93.12 CNY 2021-6-8 2022-2-18 Not
Zhu Xinming 980.00 CNY 2021-6-17 2021-7-9 Not
Zhu Xinming 810.34 CNY 2021-6-17 2022-2-18 Not
Zhu Xinming 44.03 CNY 2021-6-29 2022-2-18 Not
Jiangxi Xinzixin Real Estate Co.5341.00 CNY 2019-3-18 2021-9-18 Not
Ltd.Jiangxi Xinzixin Real Estate Co.2695.00 CNY 2019-6-26 2022-6-25 Not
Ltd.Jiangxi Xinzixin Real Estate Co.3185.00 CNY 2019-10-30 2022-10-30 Not
Ltd.Jiangxi Xinzixin Real Estate Co.2940.00 CNY 2020-7-14 2023-7-14 Not
Ltd.Jiangxi Xinzixin Real Estate Co.1470.00 CNY 2020-8-4 2021-8-4 Not
Ltd.Jiangxi Xinzixin Real Estate Co.4900.00 CNY 2020-11-6 2023-12-1 Not
Ltd.Jiangxi Xinzixin Real Estate Co.2940.00 CNY 2021-6-22 2022-6-21 Not
Ltd.Jiangxi Xinzixin Real Estate Co.2450.00 CNY 2021-6-26 2022-6-25 Not
Ltd.Yantai Baijiangyuan Business
Management Center (LP) Yantai
Fengqingtai Investment Center
(LP) Yantai Qingrunyuan Business 6859.96 CNY 2020-6-5 2021-3-17 Not
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP) Yantai
Fengqingtai Investment Center
(LP) Yantai Qingrunyuan Business 2450.00 CNY 2020-8-21 2021-8-20 Not
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP) Yantai 2450.00 CNY 2020-9-22 2021-9-21 Not
Fengqingtai Investment Center
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’000 ncy
or not
0)
(LP) Yantai Qingrunyuan Business
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP) Yantai
Fengqingtai Investment Center
(LP) Yantai Qingrunyuan Business 1470.00 CNY 2021-1-29 2022-1-28 Not
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP) Yantai
Fengqingtai Investment Center
(LP) Yantai Qingrunyuan Business 2450.00 CNY 2021-3-24 2022-3-23 Not
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP) Yantai
Fengqingtai Investment Center
(LP) Yantai Qingrunyuan Business 3920.00 CNY 2021-6-8 2022-6-7 Not
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Yantai Baijiangyuan Business
Management Center (LP) Yantai
Fengqingtai Investment Center
(LP) Yantai Qingrunyuan Business 2450.00 CNY 2021-6-18 2022-6-17 Not
Management Center (LP) Yantai
Qingjiangchuan Business
Management Center (LP)
Jiangxi Xinzixin Real Estate Co.970.20 CNY 2020-3-20 2022-3-19 Not
Ltd. Zhu Xinming
Jiangxi Xinzixin Real Estate Co.2450.00 CNY 2020-5-19 2023-5-19 Not
Ltd. Zhu Xinming
Jiangxi Xinzixin Real Estate Co.4263.00 CNY 2020-5-29 2022-11-29 Not
Ltd. Zhu Xinming
Jiangxi Xinzixin Real Estate Co.3430.00 CNY 2020-6-24 2021-6-24 Not
Ltd. Zhu Xinming
Jiangxi Xinzixin Real Estate Co.2450.00 CNY 2020-12-21 2022-12-31 Not
Ltd. Zhu Xinming
Jiangxi Xinzixin Real Estate Co. 2940.00 CNY 2020-12-28 2021-12-27 Not
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’000 ncy
or not
0)
Ltd. Zhu Xinming
Jiangxi Xinzixin Real Estate Co.490.00 CNY 2020-12-30 2023-12-30 Not
Ltd. Zhu Xinming
Yudong Environmental Protection
14210.00 CNY 2020-8-19 2023-10-31 Not
Technology Co. Ltd.Chuzhou State-owned Assets
1540.00 CNY 2020-11-25 2021-11-24 Not
Management Co. Ltd.Chuzhou State-owned Assets
3300.00 CNY 2020-12-24 2021-9-2 Not
Management Co. Ltd.Chuzhou State-owned Assets
3080.00 CNY 2021-3-25 2022-3-25 Not
Management Co. Ltd.Chuzhou State-owned Assets
188.38 CNY 2021-4-2 2022-4-2 Not
Management Co. Ltd.Hu Zehong 2450.00 CNY 2020-8-4 2021-8-3 Not
Hu Zehong 183.75 CNY 2020-11-3 2021-11-2 Not
Hu Zehong 142.10 CNY 2020-11-4 2021-11-2 Not
Hu Zehong 1014.30 CNY 2020-11-5 2021-11-2 Not
Hu Zehong 105.35 CNY 2020-11-16 2021-11-2 Not
Hu Zehong 24.50 CNY 2020-11-30 2021-11-2 Not
Hu Zehong 980.00 CNY 2021-1-24 2021-11-2 Not
Hu Zehong 2205.00 CNY 2021-4-23 2021-11-2 Not
Hu Zehong 244.02 CNY 2021-4-25 2021-11-2 Not
Wu Guoren and Xiao Yongsong 7080.50 USD 2019-12-31 2024-12-31 Not
Suiyong Rongxin Asset
2450.00 CNY 2020-8-9 2021-8-8 Not
Management Co. Ltd.Suiyong Rongxin Asset
2842.00 CNY 2020-9-23 2021-9-22 Not
Management Co. Ltd.Jiangxi Xinzixin Real Estate Co.Ltd. Xiong Muzhi Zhu Qingming 4900.00 CNY 2019-6-26 2022-6-25 Not
Zeng Xiaohong
Chuzhou Hanshang Electric
4533.96 CNY 2021-5-20 2024-5-19 Not
Appliance Co.Ltd.Hu Zehong Liang Ruiling Dai
2756.74 CNY 2020-11-12 2022-11-12 Not
Yaojin
Hu Zehong Liang Ruiling Dai
980.00 CNY 2020-12-25 2023-12-25 Not
Yaojin
Hu Zehong Liang Ruiling Dai
367.50 CNY 2021-5-31 2023-8-31 Not
Yaojin
Shenzhen Musen Enterprise Co. 3325.73 CNY 2019-3-19 2022-3-18 Not
Guarantee
Execution
amount Curre
Guarantor: Start date End date accomplished
(RMB’000 ncy
or not
0)
Ltd.Econ Technology 3300.00 CNY 2020-11-13 2024-12-31 Not
Shenzhen Guoxin
3120.44 CNY 2020-8-22 2021-12-9 Not
Micro-electronics Co. Ltd.Shenzhen Unifortune Supply Chain
2982.14 USD 2020-7-1 2021-12-31 Not
Management Co. Ltd.Shenhzhen Trade Link Supply
980.00 USD 2020-7-20 2021-12-31 Not
Chain Management Co. Ltd.Shenhzhen Trade Link Supply
668.36 USD 2020-7-20 2023-12-31 Not
Chain Management Co. Ltd.Shenhzhen Trade Link Supply
1761.06 USD 2020-9-1 2023-12-31 Not
Chain Management Co. Ltd.AUJET INDUSTRY LIMITED 936.39 USD 2020-7-20 2023-12-31 Not
Shenzhen Henglongtong
477.18 CNY 2020-10-30 2021-10-29 Not
Technology Co. Ltd.Shenzhen Henglongtong
11.18 CNY 2020-11-18 2021-10-29 Not
Technology Co. Ltd.Shenzhen Henglongtong
552.72 CNY 2021-1-1 2021-12-31 Not
Technology Co. Ltd.Guizhou Huajinrun Technology Co.879.80 USD 2018-1-1 2021-12-31 Not
Ltd.Shenzhen Henglongtong
Technology Co. Ltd. Guizhou 735.00 CNY 2018-1-1 2021-12-31 Not
Huajinrun Technology Co. Ltd.4. Borrowings of Funds
Curre
Name Amount Start date Due date
ncy
Borrowing
OCT Group Co. Ltd. 111060000.00 CNY 2020-12-7 2022-12-9
OCT Group Co. Ltd. 500000000.00 CNY 2021-2-25 2024-2-25
OCT Group Co. Ltd. 500000000.00 CNY 2021-3-4 2024-2-25
OCT Group Co. Ltd. 500000000.00 CNY 2021-3-18 2024-2-25
OCT Group Co. Ltd. 500000000.00 CNY 2021-4-20 2024-2-25
OCT Group Co. Ltd. 500000000.00 CNY 2021-6-16 2024-2-25
E3info (Hainan) Technology Co.50000000.00 CNY 2021-6-5 2021-12-4
Ltd.Chuzhou Hanshang Electric
105350000.00 CNY 2021-2-1 2022-1-31
Appliance Co. Ltd.Yantai Qingrunyuan Business
5000000.00 CNY 2020-12-25 2021-12-24
Management Center (LP)
Curre
Name Amount Start date Due date
ncy
Yantai Qingrunyuan Business
1255930.00 CNY 2021-3-5 2021-12-24
Management Center (LP)
Yantai Baijiangyuan Business
15304560.00 CNY 2021-3-5 2022-3-4
Management Center (LP)
Yantai Qingjiangchuan Business
433920.00 CNY 2021-3-5 2022-3-4
Management Center (LP)
Yantai Fengqingtai Investment
6805590.00 CNY 2021-3-5 2022-3-4
Center (LP)
Yantai Qingrunyuan Business
20961700.00 CNY 2021-4-19 2022-4-11
Management Center (LP)
Yantai Baijiangyuan Business
51280900.00 CNY 2021-4-19 2022-4-11
Management Center (LP)
Yantai Qingjiangchuan Business
1454000.00 CNY 2021-4-19 2022-4-11
Management Center (LP)
Yantai Fengqingtai Investment
22803400.00 CNY 2021-4-19 2022-4-11
Center (LP)
Total 2891710000.00
Lending
Yibin OCT Sanjiang Properties 40000000.00 CNY 2018-10-25 2021-10-24
Co. Ltd.Chongqing Konka Fuze Real Estate 188430000.00 CNY 2020-11-25 2021-11-24
Co. Ltd.Chongqing Qingjia Electronics 8900000.00 CNY 2019-4-12 2020-4-11
Co. Ltd.Yantai Kangyue Investment Co. 128527000.00 CNY 2020-12-16 2021-12-15
Ltd.Chuzhou Kangxin Health Industry 132880000.00 CNY 2020-8-24 2021-8-23
Development Co. Ltd.Chuzhou Kangxin Health Industry 20000000.00 CNY 2020-12-10 2021-12-9
Development Co. Ltd.Chuzhou Kangxin Health Industry 7350000.00 CNY 2021-1-6 2022-1-5
Development Co. Ltd.Chuzhou Kangxin Health Industry 167580000.00 CNY 2021-3-26 2022-3-26
Development Co. Ltd.Chuzhou Kangjin Health Industry 74436380.39 CNY 2021-1-13 2022-2-25
Development Co. Ltd.Chuzhou Kangjin Health Industry 24500000.00 CNY 2021-6-15 2022-6-14
Development Co. Ltd.Chuzhou Kangjin Health Industry 58800000.00 CNY 2020-9-16 2021-9-15
Development Co. Ltd.Yantai Kangyun Industrial 100200000.00 CNY 2020-11-23 2021-11-22
Development Co. Ltd.Dongguan Konka Investment Co. 22231944.48 CNY 2020-8-6 2021-8-5
Ltd.Dongguan Konka Investment Co. 7000000.00 CNY 2020-8-14 2021-8-5
Ltd.Dongguan Konka Investment Co. 166768055.52 CNY 2020-8-14 2021-8-5
Curre
Name Amount Start date Due date
ncy
Ltd.Total 1147603380.39
5. Assets Transfer of Related Party
Same period of
Name Content Reporting Period
last year
Shenzhen Konka Holding Group Co. Assignment of
98600000.00
Ltd. patent rights
Shenzhen Konka Holding Group Co.Equity transfer 470986530.00
Ltd.Total 569586530.00
6. Information on Remuneration for Key Management Personnel
Same period of last
Reporting Period
Item year
(RMB’0000)
(RMB’0000)
Total remuneration 1000.44 1229.88
(III) Balances with Related Party
1. Accounts Receivable
Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Accounts receivable:
Shenzhen Yaode
132766748.31 13303228.18 134098413.80 12181165.68
Technology Co. Ltd.HOHOELECTRICAL&F
URNITURECO.LIMITE 132119400.41 6223558.13 124721168.78 6447669.98
D
Anhui Kaikai Shijie
128400573.00 11852798.06 153854753.25 3170897.81
E-commerce Co. Ltd.Korea Electric Group Co.79874580.14 1629441.43 11876557.98 242281.78
Ltd.OCT Group Co. Ltd. And
its subsidiaries associated 76596326.16 1745927.10 68938082.60 1503214.49
enterprises
Shenzhen Konka
Information Network Co. 39522005.33 7776237.77 38956293.90 5163169.72
Ltd.Shenzhen Jielunte
Technology Co. Ltd. and
8149766.81 179454.56 38228985.16 974569.50
its subsidiaries as well as
associated enterprises
Subtotal of other related
67102747.62 4132146.85 56114631.87 3987467.12
parties
Total 664532147.78 46842792.08 626788887.34 33670436.08
Notes receivable:
Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Anhui Kaikai Shijie
8391829.94 2231739.87
E-commerce Co. Ltd.Subtotal of other related
258158.37 2243687.84
parties
Total 8649988.31 4475427.71
Interest receivable:
Yantai Kangyue
16080155.78 10910514.22
Investment Co. Ltd.Chuzhou Kangxin Health
Industry Development 10524546.65
Co. Ltd.Chongqing Konka Fuze
9128386.65 15828119.98
Real Estate Co. Ltd.Dongguan Konka
7648251.21
Investment Co. Ltd.Chuzhou Kangjin Health
Industry Development 5178239.76 7564562.01
Co. Ltd.Yantai Kangyun Industrial
4030266.68
Development Co. Ltd.Total 52589846.73 34303196.21
Dividends receivable
Chongqing Qingjia
547848.62 547848.62
Electronics Co. Ltd.Binzhou Beihai Weiqiao
Solid Waste Treatment 4400000.00
Co. Ltd.Total 547848.62 4947848.62
Other receivables:
Chongqing Liangshan
Industrial Investment Co. 167211334.00 3411111.21 262878000.00 5362711.20
Ltd.Jiangxi Meiji Enterprise
93512640.31 18819587.09 93512640.31 18833017.29
Co. Ltd.Dai Rongxing 84591701.90 21441912.67 82914871.05 21175816.98
OCT Group Co. Ltd. and 28129378.46 14236483.61
its subsidiaries associated 30431127.39 14223018.11
enterprises
Huanjia Group Co. Ltd. 23095103.20 9229041.28 23065103.20 9226041.28
Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
HOHOELECTRICAL&F
URNITURECO.LIMITE 5519421.05 112596.19
D
Subtotal of other related
3106970.46 78354.04 473279.18 21303.41
parties
Total 399647128.33 67216489.90 498794442.18 68954504.46
Prepayments:
Shenzhen Konka
Information Network Co. 40191388.22 40220535.22
Ltd.Shenzhen Jielunte
Technology Co. Ltd. and 49570.73 13483626.36
its subsidiaries
Puchuang Jiakang
2498172.50 5111181.00
Technology Co Ltd.HOHOELECTRICAL&F
URNITURECO.LIMITE 7655079.81
D
Subtotal of other related
3657143.84 5647733.34
parties
Total 46396275.29 72118155.73
Current portion of
non-current assets:
OCT Group Co. Ltd. and
its subsidiaries associated 40000000.00 75000000.00
enterprises
Feidi Technology
(Shenzhen) Co. Ltd. and 23553761.31 30630065.09
its subsidiaries
Subtotal of other related
63553761.31 105630065.09
parties
Other current assets:
Chuzhou Kangxin Health
Industry Development 327810000.00 152880000.00
Co. Ltd.Dongguan Konka
196000000.00 196000000.00
Investment Co. Ltd.Chongqing Konka Fuze
188430000.00 188430000.00
Real Estate Co. Ltd.Chuzhou Kangjin Health
Industry Development 157736380.39 160847400.00
Co. Ltd.Ending balance Beginning balance
Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Yantai Kangyue
128527000.00 128527000.00
Investment Co. Ltd.Yantai Kangyun Industrial
100200000.00
Development Co. Ltd.Total 1098703380.39 826684400.00
Long-term receivables:
Feidi Technology
(Shenzhen) Co. Ltd. and 4059369.45 12749762.58
its subsidiaries
Total 4059369.45 12749762.58
Other non-current
assets:
Chongqing Qingjia
11225866.61 10867888.84
Electronics Co. Ltd.Total 11225866.61 10867888.84
2. Accounts Payable
Ending carrying Beginning carrying
Related party
amount amount
Accounts payable:
Chuzhou Hanshang Electric Appliance Co. Ltd. 35166221.43 9462196.04
Shenzhen Konka E-display Co. Ltd. and its subsidiaries 29081354.42 6223095.56
Korea Electric Group Co. Ltd. 27090040.12 3481603.74
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries
17618906.75 12618777.74
as well as its associated enterprises
Chongqing Lvfeng Renewable Resources Co. Ltd. 14779459.37 18510819.80
OCT Group Co. Ltd. and its subsidiaries associated
13776879.66 10042155.58
enterprises
Anhui Kaikai Shijie E-commerce Co. Ltd. and its
7861878.28 2633353.42
subsidiaries
Wanjun Technology (Kunshan) Co. Ltd. 25488.05 434816.51
Subtotal of other related parties 17610256.05 19203126.03
Total 163010484.13 82609944.42
Notes payable:
Chongqing Lvfeng Renewable Resources Co. Ltd. 45624044.52
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries as 9667899.38 11850973.37
well as its associated enterprises
Subtotal of other related parties 4718551.51 5234811.10
Total 60010495.41 17085784.47
Contract liabilities/other non-current liabilities:
Ending carrying Beginning carrying
Related party
amount amount
AUJET INDUSTRY LIMITED 15249270.80
Anhui Kaikai Shijie E-commerce Co. Ltd. 7823907.60 60750.00
OCT Group Co. Ltd. and its subsidiaries associated
6061436.71 15357854.41
enterprises
Sichuan Huayi Jiakang Technology Co. Ltd. 5142212.00
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries 27430700.76
Subtotal of other related parties 4398757.61 4518534.87
Total 30851677.12 47307090.04
Other payables:
Chuzhou Hanshang Electric Appliance Co. Ltd. 126370999.21 151494362.56
Yantai Baijiangyuan Business Management Center (LP) 67664518.51
E3info (Hainan) Technology Co. Ltd. 50162711.83 50166438.36
Yantai Fengqingtai Investment Center (LP) 30088822.08
Yantai Qingrunyuan Business Management Center (LP) 27727493.25
Feidi Technology (Shenzhen) Co. Ltd. and its subsidiaries 12215861.75 13215861.75
Chongqing Lvfeng Renewable Resources Co. Ltd. 11143969.16 5800221.60
OCT Group Co. Ltd. and its subsidiaries and associates 5046383.11 481704.23
Subtotal of other related parties 10374508.26 6763074.18
Total 340795267.16 227921662.68
Current portion of non-current liabilities:
OCT Group Co. Ltd. and its subsidiaries 253275.20 10777675.49
Total 253275.20 10777675.49
Long-term payables:
OCT Group Co. Ltd. and its subsidiaries and associates 40485591.71
Total 40485591.71
十一、 XII. Contingency
(1) As the acceptor has not paid the commercial acceptance bills held by the Company after
maturity the Company as the plaintiff filed a lawsuit with the court for bills with a total amount
of 200 million yuan. The debtors Hongtu Sanpower Technology Co. Ltd. Jiangsu Hongtu High
Technology Co. Ltd. Sanpower Group Co. Ltd. Nanjing Jiongjiong Electronic Technology Co.Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd. bear joint and several
liability for the settlement of the bill amount and overdue interest. In July 2019 the company
filed a lawsuit with the court and the court has preserved the defendant's corresponding property.As of the date of issuance of this report property execution is ongoing.
(2) As the acceptor has not paid the commercial acceptance bills held by the Company after
maturity the Company as the plaintiff filed a lawsuit for bills of RMB 300027889.84 to the
court asked bill acceptor and Shanghai Huaxin International Group Co. Ltd. involves bills before
hand the bill amount and default interest shall bear joint liability. As of the date of issuance of this
report the case involving 150 million yuan in the case has been in the compulsory execution
stage and the shareholder has been added as the person to be executed in the case; the courts of
the remaining 150 million cases have ruled that the defendant should pay bills and interest to
Konka Group Enforced. As of the date of issuance of this report property execution is ongoing.
(3) As the commercial draft held by the company was not paid by the acceptor after it expired the
company as the plaintiff filed a lawsuit with the court for a total amount of 78300690.24 yuan
of due notes requesting an order from Hefei Huajun Trading Co. Ltd. and Wuhan Jialian
Agricultural Technology Co. Ltd. The Development Co. Ltd. paid the bill amount and default
interest to the company and applied for property preservation. As of the date of issuance of this
report the court has ruled that the defendant should pay the bills and corresponding interest to
Konka Group and the case is being executed.
(4) Because the company's subsidiary Konka Commercial Factoring did not redeem the bills held
by the acceptor after maturity the company as the plaintiff filed a lawsuit with the court for the
65221300.00 yuan due bills and required the bill acceptor to hand over the bills to the company
and the bills involved. And the default interest shall bear joint and several liability for repayment.As of the date of issuance of this report the second instance was ruled by the court to dismiss the
prosecution. At present the above-mentioned commercial acceptance bill has not been honored
during the retrial of the case.
(5) The dispute among the Company and China Energy Electric Fuel Co. Ltd. China Energy
(Shanghai) Enterprise Co. Ltd. Shanghai Nengping Enterprise Co. Ltd. and Shenzhen Qianhai
Baoying Commercial Factoring Co. Ltd. over the right of recourse for bills involves the amount
of the subject matter of the lawsuit to be RMB 50 million and the corresponding interest. In
September 2018 the Company filed a lawsuit with Shenzhen Intermediate People’s Court which
has preserved the defendant’s corresponding property. The judgment of this case has come into
effect. In the court's judgment defendants such as China Energy Electric Fuel Co. Ltd. shall pay
the bill amount of RMB50 million and the relevant interest to the Company. During the execution
of the case the court ruled that the Company should add the defendant shareholder as the
co-executed party. As of the date of issuance of this report the case is in the execution stage.
(6) The dispute in bill recourse among the subsidiary of the Company Konka Factoring
(Shenzhen) Co. Ltd. Tahoe Group Co. Ltd. Fuzhou Taijia Enterprise Co. Ltd. and Xiamen
Lianchuang Micro-electronics Co. Ltd. has involved with the underlying amount of RMB 50
million and relevant interest. In January 2019 the Company filed a lawsuit to Xiamen Municipal
Intermediate People’s Court and the Company has applied for property preservation to the court.As of the issuance date of this report the case has not given judgment.
(7) The loan contract disputes related to the Company’s subsidiary Jiangxi Konka and its
subsidiary Xinfeng Microcrystaline Jiangxi High Transparent Substrate China Great Wall AMC
Jiangxi Branch Zhu Xinming Leng Sumin Jiangxi Xinzixin Jiangxi Xinxin Jian ’ an
Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi Science and Technology and
etc. Due to the affiliated parties of Jiangxi Konka’s original shareholder i.e. Jiangxi Xinxin Jian’
an Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi Technology failed to
repay the loan on schedule. Therefore China Great Wall AMC Jiangxi Branch filed a lawsuit and
demanded Jiangxi Xinxin Jian’an Engineering Jiangxi Zhongyi Decorative Material Jiangxi
Shanshi Science and Technology to repay the loan principal of RMB 300 million liquidated
damages of RMB 108000 and interest of RMB 13.65 million. Guarantors Jiangxi Konka Zhu
Xinming Leng Sumin Nano Crystallized Glass and Xinfeng Microcrystaline were required to
bear joint liability for the above debts.On October 31 2019 the Jiangxi Provincial Superior People’s Court ruled in first instance that
Jiangxi Xinxin Jian’an Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi
Technology would repay the loan principal of RMB 100 million interest and liquidated damages
to China Great Wall AMC Jiangxi Branch within 10 days from the effective date of the judgment
respectively. Jiangxi Konka Zhu Xinming Leng Sumin Nano Crystallized Glass and Xinfeng
Microcrystaline shall bear joint and several liabilities for all debts determined by the above
judgment. The defendants dissatisfied with the first-instance judgment and filed an appeal and
the Supreme People's Court has accepted this; in June 2021 the second-instance court ruled that
the case should be sent back to the first-instance court for retrial. As of the date of issuance of this
report the case is still under trial.The actual controller of Konka New Materials Zhu Xinming and his spouse Leng Sumin as
guarantors provided a total of about RMB 143 million of real estate mortgage guarantee to Great
Wall AMC for the above loans. Zhu Xinming and Leng Sumin also provided joint liability
guarantees. In order to avoid the adverse impact of this case on the Company the Company has
agreed in the acquisition agreement of Jiangxi Konka Xinfeng Microcrystalline and nanometer
microcrystalline that all contingent debts incurred by Jiangxi Konka by the original shareholders
of Konka new material in the form of joint and several liability. Jiangxi Xinzixin Real Estate Co.ltd. has held a total of about RMB 243 million of real estate assets as the case of the
anti-guarantee mortgage to Konka group and went through the mortgage registration procedures.As of the date of this report the case is still on trial and the above commercial acceptance bill has
not been honored.
(8) The company's subsidiary Konka Huanjia Environmental Protection Technology Co. Ltd. and
Huanjia Group Co. Ltd. Dalian Jinshunda Material Recycling Co. Ltd. and other 14 companies
have filed a case involving disputes over the sale and purchase contract and the amount involved
in the litigation is RMB 568491466.67. Konka Huanjia Environmental Technology Co. Ltd. has
applied for the court to seal up and freeze the defendant's corresponding property. As of the date
of issuance of this report the second instance of this case is under trial and no effective judgment
has been issued for this case.
(9) The company's subsidiary Konka Huanjia Environmental Protection Technology Co. Ltd. and
Huanjia Group Co. Ltd. Henan Haorui Renewable Resources Recycling Co. Ltd. and other
companies have filed a case involving disputes over the sale and purchase contract and the
amount of the litigation involved is RMB 202139597.77. As of the date of issuance of this report
no effective judgment has been issued for this case.
(10) The dispute between the Company and Wuhan Jialian Agricultural Technology Development
Co. Ltd. Peng Chaojun He Jiaguo He Jiayi Liang Xiangzhou Xu Yizheng He Fan Pang
Huasheng Song Liangming and Liang Xiangmei on the right of recourse for bills involved a
litigation subject amount of RMB200000000.00 and corresponding interest. In September 2020
the company filed a lawsuit with the Wuhan Intermediate People's Court and the company has
applied to the court for property preservation. As of the date of issuance of this report no
effective judgment has been issued for this case.
(11) The dispute in sales contract between the subsidiary of the Company Dongguan Konka and
Dongguan Gaoneng Polymer Materials Co. Ltd. Wang Dong Shenzhen Xinlian Xingyao
Trading Co. Ltd. Shenzhen Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong
Trading Co. Ltd. Huang Zhihao have involved in RMB 90100998.78 (including RMB
52718868.54 of overdue payment the corresponding liquidated damages and litigation costs). In
January 2021 the court opened the case and the case is currently being heard in Shenzhen
Nanshan District People's Court. As of the date of issuance of this report no effective judgment
has been issued for this case.
(12) The company's subsidiary Anhui Konka Electronics Co. Ltd. Shanghai Likai Logistics Co.
Ltd. Shenzhen Branch and Shanghai Likai Logistics Co. Ltd. in the case of maritime and sea
freight forwarding agency contract disputes the amount involved in the litigation is USD
5393051.14. In January 2020 the company filed a lawsuit in the court. As of the date of issuance
of this report the case is in the execution stage and the company has applied to the court for
property preservation.
(13) The dispute in capital increase among the subsidiary of the Company Shenzhen Nianhua
Fang Xianglong and Jiang Yan has involved in RMB 20451631.52 and Shenzhen Nianhua has
applied for property preservation to the court. As of the date of issuance of this report the case
has been completed and the Shenzhen Court of International Arbitration has issued an award
which is currently being implemented.十二、 XIII. Commitment and Contingency
1. Capital Commitments
Item Ending balance Beginning balance
Commitments signed but hasn’t been
recognized in financial statements
—Commitment on construction and purchase
277628800.00
of long-lived assets
—Contract with large amount 4476840238.01 4310308187.10
—Foreign investment commitments
Total 4476840238.01 4587936987.10
2. Operating Lease Commitments
As of the balance sheet date the irrevocable operating lease commitments that the Company
signed were as followed:
Item Ending balance Beginning balance
Minimum lease payments of irrevocable
operating lease
1 year after balance date 52100737.92 52265285.12
2 years after balance date 19853468.21 36586799.43
3 years after balance date 8034015.25 8779702.07
Following years 27532381.93 26662526.63
Total 107520603.31 124294313.25
3. Other Commitments
As of 30 June 2021 there were no other significant commitments for the Company to disclose.十三、 XIV. Events af ter Balance Sheet Date
No significant non-adjusted events
十四、 XV. Other Signif icant Events
On 2 August 2021 it was determined during the 44th meeting of the 9th Board of Directors of the
Company that the 11.70% equity held by the Company in Econ Technology Co. Ltd. would be
transferred in the form of public listing in the State-owned Property Right Exchange in
accordance with the procedures for trading and listing of state-owned property rights with the
listing price thereof being expected not to be lower than RMB306 million. If equity transfer
procedures can be completed within 2021 and the fact that neither the book value nor the listing
price of Econ Technology Co. Ltd. is lower than RMB306 million on 30 June 2021 is taken as
calculation basis the amount of after-tax gains arising from the Company's disposal of long-term
equity investment is expected to be roughly RMB22572900 with the remaining equity being
calculated by the equity method and remeasured at fair value. And accordingly the total amount
of after-tax gains therefrom is expected to be roughly RMB196637800.On 2 August 2021 it was determined during the 44th meeting of the 9th Board of Directors of the
Company that the 70.00% equity of Shenzhen Yipingfang Network Technology Co. Ltd. held by
the Company would be transferred in the form of public listing in the State-owned Property Right
Exchange in accordance with the procedures for trading and listing of state-owned property rights
with the listing price thereof being expected not to be lower than RMB2.8 billion. If equity
transfer procedures can be completed within 2021 and the fact that neither the book value nor the
listing price of Yipingfang Network Technology Co. Ltd. is lower than RMB2.8 billion on 30
June 2021 is taken as calculation basis the amount of after-tax gains arising from the Company's
disposal of long-term equity investment is expected to be roughly RMB1812680200 with the
remaining equity being calculated by the equity method and remeasured at fair value. And
accordingly the total amount of after-tax gains therefrom is expected to be roughly
RMB913909400.十五、 XVI. Notes of Main Items in the Financial Statements of the
Company as the Parent
1. Accounts Receivable
(1) Listed by Withdrawal Method of Expected Credit Loss
Ending balance
Carrying amount Bad debt provision
Withd
Category Propor rawal
Carrying value
Amount tion Amount propo
(%) rtion
(%)
Accounts
receivable for
which expected
945635734.73 12.04 555833448.49 58.78 389802286.24
credit loss
withdrawn
separately
Accounts
receivable for
which expected
credit loss
withdrawn by
group
Of which:
576499022.45 7.34 181416522.05 31.47 395082500.40
Aging group
Related
6331764320.94 80.62 6331764320.94
party group
Subtotal of
6908263343.39 87.96 181416522.05 2.63 6726846821.34
groups
Total 7853899078.12 100.00 737249970.54 9.39 7116649107.58
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category WithdrPropor
awal Carrying value
Amount tion Amount
proport
(%)
ion (%)
Accounts
receivable for
which
948510887.48 18.22 552922400.60 58.29 395588486.88
expected credit
loss withdrawn
separately
Accounts
receivable for
which
expected credit
loss withdrawn
by group
Of which:
574995507.05 11.05 178675741.20 31.07 396319765.85
Aging group
Related
3681343439.12 70.73 3681343439.12
party group
Beginning balance
Carrying amount Bad debt provision
Category WithdrPropor
awal Carrying value
Amount tion Amount
proport
(%)
ion (%)
Subtotal of
4256338946.17 81.78 178675741.20 4.20 4077663204.97
groups
Total 5204849833.65 100.00 731598141.80 14.06 4473251691.85
1) Withdrawal of Expected Credit Loss Separately
Ending balance
Withdrawal
Name Bad debt
Carrying amount proportion Reason
provision
(%)
CEFC (Shanghai)
300018021.01 240014416.81 80.00 Debt default
Group Co. Ltd.Tewoo Group Judicial
200000000.00 90000000.00 45.00
Co. Ltd. reorganization
Jiangsu Hongtu
Sanbao
Agreement
High-Tech 200000000.00 80000000.00 40.00
reorganization
Technology Co.Ltd.China Nuclear
Engineering
72639096.65 22374785.74 30.80 Increased credit risk
Construction
Group Co. Ltd.CCCC No.1
Navigation Expected to be
Bureau No.1 55438105.00 48915975.00 88.24 difficult to recover in
Engineering Co. full
Ltd
Expected to be
Other 117540512.07 74528270.94 63.41 difficult to recover in
full
Total 945635734.73 555833448.49 58.78
2) Withdrawal of Expected Credit Loss by Group
① Among Groups Withdrawal of Expected Credit Loss by Aging
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision proportion
(%)
Within 1 year 350252796.23 7145157.04 2.04
1 to 2 years 13763442.36 1379096.92 10.02
2 to 3 years 49407659.29 11210597.89 22.69
3 to 4 years 3967694.68 2574240.31 64.88
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision proportion
(%)
Over 4 years 159107429.89 159107429.89 100.00
Total 576499022.45 181416522.05 31.47
②Among Groups Withdrawal of Expected Credit Loss by Adopting Other Method
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision proportion
(%)
Related party group 6331764320.94
Total 6331764320.94
Listed by aging group
Aging Ending balance
Within 1 year 6115727810.61
1 to 2 years 782294915.68
2 to 3 years 774788936.76
3 to 4 years 6993650.35
Over 4 years 174093764.72
Subtotal 7853899078.12
Less: bad debt provision 737249970.54
Total 7116649107.58
(3) Information of Bad Debt Provision in the Reporting Period
Changed amount
Colle
Beginning cted
Category Write-off Ending balance balance Withdrawn or
or verified
rever
sed
Accounts
Receivable
731598141.80 5651828.74 737249970.54
Bad Debt
Provision
Total 731598141.80 5651828.74 737249970.54
(4) Actual Verification of Accounts Receivable
No actual verified accounts receivable in the Reporting Period.
(5) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Total amount of Top 5 of ending balance of accounts receivable collected according to arrears
party was RMB6330799109.11 accounting for 80.61% of total ending balance of accounts
receivable. Total ending balance of bad debt provision withdrawn was RMB0.00.
(6) There Was No Account Receivable Terminated the Recognition owning to the Transfer of the
Financial Assets.
(7) There Was No Asset and Liability Formed due to the Transfer of Accounts Receivable and
Continued Involvement in the Reporting Period.2. Other Receivables
Item Ending balance Beginning balance
Interest receivable 53913996.27 41138869.97
Dividends receivable 746582755.50 749431635.50
Other receivables 10389265221.89 9244298847.60
Total 11189761973.66 10034869353.07
2.1 Interest receivable
Item Ending balance Beginning balance
Term deposits 1322411.54 6830211.26
Entrustment loans 52589846.73 34303196.21
Factoring interest 1738.00 5462.50
Total 53913996.27 41138869.97
2.2 Dividends receivable
Investee Ending balance Beginning balance
Hong Kong Konka Limited 247959840.00 250808720.00
Suining Konka Industrial Park
280000000.00 280000000.00
Development Co. Ltd.Dongguan Konka Electronic Co.218622915.50 218622915.50
Ltd.Total 746582755.50 749431635.50
2.3 Other receivables
(1) Classified by Account Nature
Nature Ending carrying amount Beginning carrying amount
Deposit and margin 9782440.75 9180409.27
Intercourse funds among
10713099519.74 9378801127.33
subsidiaries
Intercourse funds with other
54319116.46 118043953.69
related parties
Energy-saving subsidy receivable 141549150.00 141549150.00
Other 43603862.77 89315201.21
Total 10962354089.72 9736889841.50
(2) Withdrawal of Bad Debt Provision
Phase I Phase II Phase III
Expected
Expected credit
Expected credit losses
Bad debt provision losses for the credit losses for the entire Total
entire duration
over the next duration (no
(with credit
12 months credit
impairment)
impairment)
Balance on 1 January
1901190.46 18128678.66 472561124.78 492590993.902021
In the Reporting Period
Phase I Phase II Phase III
Expected
Expected credit
Expected credit losses
losses for the
Bad debt provision credit losses for the entire Total
entire duration
over the next duration (no
(with credit
12 months credit
impairment)
impairment)
Carrying amount of other
receivables on 1 January
2021:
—— Transferred to the
-679520.48 679520.48
Phase II
—— Transferred to the
-233220.74 233220.74
Phase III
——Transferred back to
the Phase II
——Transferred back to
the Phase I
Withdrawal -750500.52 2014233.70 79234140.75 80497873.93
Recovery
Write-off
Verification
Other changes
Balance on 30 June
471169.46 20589212.10 552028486.27 573088867.832021
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
Withd
Category Propo rawal Carrying value
Amount rtion Amount propo
(%) rtion
(%)
Other 1827625727.00 16.67 552028486.27 30.20 1275597240.73
Ending balance
Carrying amount Bad debt provision
Withd
Category Propo rawal Carrying value
Amount rtion Amount propo
(%) rtion
(%)
receivables
with significant
individual
amount and
make
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
credit risks
characteristics
Aging group 73490701.10 0.67 18562326.44 25.26 54928374.66
Low-risk group 11022883.60 0.10 2498055.12 22.66 8524828.48
Related party
9050214778.02 82.56 9050214778.02
group
Subtotal of
9134728362.72 83.33 21060381.56 0.23 9113667981.16
groups
Total 10962354089.72 100.00 573088867.83 5.23 10389265221.89
(Continued)
Beginning balance
Carrying amount Bad debt provision
Withd
Category Propo rawal
Carrying value
Amount rtion Amount propo
(%) rtion
(%)
Other
receivables with
significant
individual
amount and
1764691060.74 18.12 472561124.78 26.78 1292129935.96
make
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
credit risks
characteristics
Aging group 128885012.86 1.32 15447446.31 11.99 113437566.55
Low-risk
17273953.16 0.18 4582422.81 26.53 12691530.35
group
Related party
7826039814.74 80.38 7826039814.74
group
Subtotal of
7972198780.76 81.88 20029869.12 0.25 7952168911.64
groups
Total 9736889841.50 100.00 492590993.90 5.06 9244298847.60
(4) Listed by aging
Aging Ending balance
Within 1 year 6503725089.94
1 to 2 years 1554353123.80
2 to 3 years 2474591150.18
3 to 4 years 118889752.90
4 to 5 years 45359999.98
Over 5 years 265434972.92
Subtotal 10962354089.72
Less: bad debt provision 573088867.83
Total 10389265221.89
(5) Bad Debt Provision for Other Receivables
The amount of bad debt provision for this year was RMB80497873.93 and other receivables
actually written off in this period were RMB0.00.
(6) Other receivables with top five ending balances collected by debtors.
In Reporting Period the total amount of the top five other receivables collected by debtors at the
end of the Reporting Period was RMB7626568292.03 accounting for 69.57% of the total
amount of other receivables at the end of the Reporting Period and the total amount of the
corresponding accrued bad debt reserves at the end of the Reporting Period was
RMB393127325.57.
(7) There Was No Other Receivables Terminated the Recognition owning to the Transfer of the
Financial Assets.
(8) There Was No Asset and Liability Formed by the Transfer and the Continues Involvement of
Other Receivables.3. Long-term Equity Investment
（1）Category of Long-term Equity Investment
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment to
7376927068.77 102532484.69 7274394584.08 7083817068.77 102532484.69 6981284584.08
subsidiaries
Investment to
associates and joint 1782484259.87 26166078.16 1756318181.71 1851048093.64 26166078.16 1824882015.48
ventures
Total 9159411328.64 128698562.85 9030712765.79 8934865162.41 128698562.85 8806166599.56
（2）Investment to Subsidiaries
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Konka Ventures 2550000.00 2550000.00
Anhui Konka 122780937.98 122780937.98
Konka Factoring 300000000.00 300000000.00
Konka Unifortune 15300000.00 15300000.00
Wankaida 10000000.00 10000000.00
Dongguan Konka 274783988.91 274783988.91
Konka Europe 3637470.00 3637470.00
Konka Electrical
1.00 1.00 10732484.69
Appliances
Telecommunication
360000000.00 360000000.00
Technology
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Mobile
100000000.00 100000000.00
Interconnection
Anhui Tongchuang 779702612.22 779702612.22
Kangjiatong 15300000.00 15300000.00
Pengrun Technology 25500000.00 25500000.00
Dongguan Packing 8602009.10 8602009.10
E2info 19322040.00 19322040.00
Beijing Konka
200000000.00 200000000.00
Electronic
Konka Circuit 91000000.00 188950000.00 279950000.00
Hong Kong Konka 781828.61 781828.61
Konka Investment 500000000.00 500000000.00
Electronics
1000000000.00 1000000000.00
Technology
Yantai Laikang
Econ Technology 688500000.00 688500000.00
Konka Huanjia 91800000.00
Shanghai Konka 40000000.00 40000000.00
Jiangxi Konka 689680000.00 689680000.00
Shenzhen Nianhua 30000000.00 30000000.00
Shenzhen
100000000.00 100000000.00
KONSEMI
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Konka
50000.00 50000.00
Eco-Development
Suining Konka 200000000.00 200000000.00
Konka Ronghe 5100000.00 5100000.00
Suining Electronic
Technological 200000000.00 200000000.00
Innovation
Shenzhen Chuangzhi
10000000.00 10000000.00
Electrical Appliances
Kanghong (Yantai)
Environmental 1025100.00 1025100.00
Protection
Chongqing
25500000.00 25500000.00
Kangxingrui
Chongqing
Optoelectronic 933333333.33 933333333.33
Institute
Xinying
56000000.00 36520000.00 92520000.00
Semiconductor
Jiangkang
(Shanghai)
Technology
Ningbo Kanghanrui
90000000.00 90000000.00
Electrical Appliances
Provision for
Ending balance of
Investee Beginning balance Increase Decrease Ending balance impairment this
depreciation reserve
year
Konka Zhizao 510.00 510.00
Suining Jiarun Real
10000000.00 10000000.00
Estate
Yantai Kangyun 1530000.00 1530000.00
Chongqing Kanglei
Yibin Kangrun 67000000.00 67000000.00
Henan Kangxin Real
Estate
Konka Material 4304752.93 4304752.93
Shenzhen Kangxin
25500000.00 25500000.00
Real Estate
Shaanxi Konka
34170000.00 34170000.00
Intelligent
Industrial and Trade
5000000.00 5000000.00
Technology
Konka Huazhong 30000000.00 30000000.00
Total 6981284584.08 320140000.00 27030000.00 7274394584.08 102532484.69
（3）Investment to Joint Ventures and Associated Enterprises
Increase-decrease
Balance at the end of
Gains and losses Adjustment of other
Investee last year at the Additional
Reduced investment recognized under the comprehensive
beginning of the year investment
equity method income
Anhui Kaikai Shijie E-commerce Co. Ltd. 17400738.44
Increase-decrease
Balance at the end of
Gains and losses Adjustment of other
Investee last year at the Additional
Reduced investment recognized under the comprehensive
beginning of the year investment
equity method income
Wanjun Technology (Kunshan) Co. Ltd. 121579584.17 -2046465.83
Kunshan Kangsheng 175254554.65 32849354.55
Chutian Dragon Co. Ltd. 650206807.02 4824758.43
Helongjiang Longkang Zhijia Technology
1100842.29 -3709.66
Co. Ltd.Konka Green Konka Technology 75261304.56 75261304.56
Shaanxi Silk Road Cloud Intelligent Tech
17649295.81 -1596222.64
Co. Ltd.Shenzhen Konka Information Network Co.Ltd.Shenzhen Zhongbin Konka Technology Co.2214307.33 -2214307.33
Ltd.Shenzhen Konka Intelligent Electrical
3813134.28 -1441954.44
Apparatus Co. Ltd.Shenzhen Bosser New Materials Co. Ltd. 58400000.00 -2064227.96
Shenzhen Yaode Technology Co. Ltd. 219128661.62 -4569192.27
Wuhan Tianyuan Environmental Protection
304654243.69 13222348.47
Co. Ltd.Konka E-display 11774141.26
Chuzhou Konka Technology Industry
5899324.39 -1172317.71
Development Co. Ltd.Chuzhou Kangjin Health Industrial 15251484.01 -6410036.65
Increase-decrease
Balance at the end of
Gains and losses Adjustment of other
Investee last year at the Additional
Reduced investment recognized under the comprehensive
beginning of the year investment
equity method income
Development Co. Ltd.Haimen Kangjian Technology Industrial
19044986.77 -3070358.71
Park Operations and Management Co. Ltd.Shenzhen Kangyue Enterprise Co. Ltd. 3348297.05 -170576.56
Dongguan Konka Investment Co. Ltd. 42158277.63 -12122313.26
Chongqing Konka Real Estate Development
15778426.04 -7987220.86
Co. Ltd.Chongqing Chengda Real Estate Co. Ltd. 13684752.24 -303372.41
Chuzhou Kangxin Health Industry
14704242.50 -1310518.75
Development Co. Ltd.E3info (Hainan) Technology Co. Ltd. 36574609.73 3310556.06
Shenzhen Kangpeng Digital Technology
6000000.00 -1063135.76
Co. Ltd.Yantai Kangyun Industrial Development
1021017.42 -264633.34
Co. Ltd.Total 1824882015.48 7021017.42 75261304.56 6396453.37
(Continued)
Increase/decrease
Cash bonus or Ending balance
Other Withdrawal of Ending balance Investee profits of depreciation
equity impairment Other (carrying value)
announced to reserve
changes provision
issue
Increase/decrease
Cash bonus or Ending balance Ending balance
Investee Other Withdrawal of profits of depreciation
equity impairment Other (carrying value)
announced to reserve
changes provision
issue
Anhui Kaikai Shijie E-commerce Co. Ltd. 17400738.44
Wanjun Technology (Kunshan) Co. Ltd. 119533118.34
Kunshan Kangsheng 208103909.20
Chutian Dragon Co. Ltd. 6720000.00 648311565.45
Helongjiang Longkang Zhijia Technology Co.1097132.63 2470398.03
Ltd.Konka Green Konka Technology
Shaanxi Silk Road Cloud Intelligent Tech Co.16053073.17
Ltd.Shenzhen Konka Information Network Co.5158909.06
Ltd.Shenzhen Zhongbin Konka Technology Co.Ltd.Shenzhen Konka Intelligent Electrical
2371179.84
Apparatus Co. Ltd.Shenzhen Bosser New Materials Co. Ltd. 56335772.04 18536771.07
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental Protection
317876592.16
Co. Ltd.Konka E-display 11774141.26
Chuzhou Konka Technology Industry 4727006.68
Increase/decrease
Cash bonus or Ending balance
Investee Other Withdrawal of
Ending balance
profits of depreciation
equity impairment Other (carrying value)
announced to reserve
changes provision
issue
Development Co. Ltd.Chuzhou Kangjin Health Industrial
8841447.36
Development Co. Ltd.Haimen Kangjian Technology Industrial Park
15974628.06
Operations and Management Co. Ltd.Shenzhen Kangyue Enterprise Co. Ltd. 3177720.49
Dongguan Konka Investment Co. Ltd. 30035964.37
Chongqing Konka Real Estate Development
7791205.18
Co. Ltd.Chongqing Chengda Real Estate Co. Ltd. 13381379.83
Chuzhou Kangxin Health Industry
13393723.75
Development Co. Ltd.E3info (Hainan) Technology Co. Ltd. 39885165.79
Shenzhen Kangpeng Digital Technology Co.4936864.24
Ltd.Yantai Kangyun Industrial Development Co.756384.08
Ltd.Total 6720000.00 1756318181.71 26166078.16
4. 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
1049267610.79 1005212983.03 2574146637.40 2316701232.32
operations
Other
152113795.91 74048575.31 801299393.49 634398598.53
operations
Total 1201381406.70 1079261558.34 3375446030.89 2951099830.85
5. Investment Income
Same Period of
Item Reporting Period
last year
Long-term equity investment income accounted
by cost method
Long-term equity investment income accounted
6396453.37 882170.97
by equity method
Investment income from disposal of long-term
167692365.06 471523601.25
equity investment
Interest income from holding of debt obligation
860000.00 3070000.00
investments
Investment income from disposal of trading
3405333.03
financial assets
Income from entrust financial products and entrust
29983956.45
loans
Investment income from disposal of financial
21845500.00
assets at fair value through profit or loss
Total 196794318.43 508865061.70
十六、 XVII. Approval of Financial Statements
The financial statement was approved on 26 August 2021 by the Board of Directors.十七、 XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Item Amount Note
Gain-Loss arising from disposal of non-current assets 268231018.80
Tax rebates reductions or exemptions due to approval
beyond authority or the lack of official approval
documents
Government subsidies recognized in the current period
except for those acquired in the ordinary course of
714611090.13
business or granted at certain quotas or amounts
according to the government’s unified standards
Capital occupation charges on non-financial enterprises
that are recorded into current profit or loss
Item Amount Note
Gains due to that the investment costs for the Company
to obtain subsidiaries associates and joint ventures are
lower than the enjoyable fair value of the identifiable net
assets of the investees when making the investments
Gain/Loss on non-monetary asset swap
Gain/Loss on entrusting others with investments or asset
management
Asset impairment provisions due to acts of God such as
natural disasters
Gain/Loss from debt restructuring
Expenses on business reorganization such as expenses
on staff arrangements integration etc.Gain/Loss on the part over the fair value due to
transactions with distinctly unfair prices
Current net profit or loss of subsidiaries acquired in
business combination under the same control from
period-beginning to combination date
Gain/Loss incurred from contingency unrelated to the
Company’s normal operating businesses.Gain/loss from change of fair value of trading financial
assets and liabilities and derivative financial assets and
liabilities and investment gains from disposal of trading
financial assets and liabilities and derivative financial 74929272.98
assets and liabilities and investment in other obligatory
rights other than valid hedging related to the
Company’s common businesses
Reverse of bad debt provision of accounts receivable
individually conducting impairment test
Gain/loss on entrustment loans 36464688.55
Gain/loss on change in fair value of investment property
of which the subsequent measurement is carried out
adopting fair value method
Effect on current profit or loss when a one-off
adjustment is made to current profit or loss according to
requirements of taxation accounting and other relevant
laws and regulations
Custody fee income when entrusted with operation
Other non-operating income and expense other than the
15023790.96
above
Project confirmed with the definition of non-recurring
gains and losses
Subtotal 1109259861.42
Less: Income tax effects 229844293.22
Non-controlling interests effects (after tax) 83841010.78
Total 795574557.42
(1) The explanation of the Company to “Project confirmed with the definition of non-recurring gains andlosses” and define non-recurring gains and losses as recurring gains and losses according to the nature and
features of normal business operations of company.Item Amount Reason
Government subsidies which are closely related to the
Software tax normal business of the company and which are in
6085265.89
refund accordance with national policies and certain standard
quota or quantitative amount
Total 6085265.89
2. Return on Equity and Earnings Per Share
Weighted average ROE EPS (Yuan/share)
Profit as of Reporting Period
(%) EPS-basic EPS-diluted
Net profit attributable to ordinary
1.01% 0.0355 0.0355
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
-8.38% -0.2927 -0.2927
deduction of non-recurring profit or
loss
Weighted average ROE EPS (Yuan/share)
Profit as of Reporting Period
(%) EPS-basic EPS-diluted
The net profit of the common
shareholders of a company
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