Konka Group Co. Ltd. Annual Report 2023
KONKAGROUPCO. LTD.ANNUALREPORT 2023
April 2024
1Konka Group Co. Ltd. Annual Report 2023
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of Konka Group Co. Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the factuality accuracy and completeness of the contents of
this Report and its summary and shall be jointly and severally liable for any
misrepresentations misleading statements or material omissions therein.Zhou Bin the Company’s legal representative Li Chunlei the Company’s Chief Financial
Officer (CFO) and Ping Heng the head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.Therefore investors are reminded to exercise caution when making investment decisions.The Company has no final dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions the Chinese versions
shall prevail.
2Konka Group Co. Ltd. Annual Report 2023
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 9
Part III Management Discussion and Analysis..........14
Part IV Corporate Governance.........................38
Part V Environmental and Social Responsibility...... 66
Part VI Significant Events.......................... 79
Part VII Share Changes and Shareholder Information..108
Part VIII Preferred Shares......................... 115
Part IX Corporate Bonds.............................116
Part X Financial Statements.........................124
3Konka Group Co. Ltd. Annual Report 2023
Documents Available for Reference
1. The financial statements with the signatures and seals of the Company’s legal representative
Chief Financial Officer and head of the financial department;
2. The original copy of the Independent Auditor’s Report with the seal of the CPA firm and the
signatures & seals of the certified public accountants;
3. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period;
4. This Report and its summary with the signature of the Company’s legal representative and the
seal of the Company; and
5. Other relevant materials.
4Konka Group Co. Ltd. Annual Report 2023
Definitions
Term Definition
The “Company” the “Group” “Konka Group” or Konka Group Co. Ltd. and its consolidated subsidiaries except where the
“we” context otherwise requires
Electronics Technology Shenzhen Konka Electronics Technology Co. Ltd.Anhui Zhilian Anhui Konka Zhilian E-Commerce Co. Ltd.Haimen Konka Nantong Haimen Konka Smart Technology Co. Ltd.Chengdu Konka Smart Chengdu Konka Smart Technology Co. Ltd.Chengdu Konka Electronic Chengdu Konka Electronic Co. Ltd.Nantong Hongdin Nantong Hongdin Smart Technology Co. Ltd.Shenzhen Kangcheng Shenzhen Kangcheng Technology Innovation and Development Co. Ltd.Xiaojia Technology Xiaojia Technology Co. Ltd.Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co. Ltd.Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co. Ltd.Nanjing Konka Nanjing Konka Electronics Co. Ltd.Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co. Ltd.XingDa HongYe GuangDong XingDa HongYe Electronic Co. Ltd.Konka Circuit Shenzhen Konka Circuit Co. Ltd.Konka Flexible Electronic Suining Konka Flexible Electronic Technology Co. Ltd.Konka Hongye Electronics Suining Konka Hongye Electronics Co. Ltd.Boluo Precision Boluo Konka Precision Technology Co. Ltd.Boluo Konka Boluo Konka PCB Co. Ltd.Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co. Ltd.Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co. Ltd.Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co. Ltd.Frestec Refrigeration Henan Frestec Refrigeration Appliance Co. Ltd.Frestec Electrical Appliances Henan Frestec Electrical Appliances Co. Ltd.Frestec Household Appliances Henan Frestec Household Appliances Co. Ltd.Frestec Smart Home Henan Frestec Smart Home Technology Co. Ltd.Konka Investment Shenzhen Konka Investment Holdings Co. Ltd.Yibin Konka Technology Park Yibin Konka Technology Park Operation Co. Ltd.Konka Capital Shenzhen Konka Capital Equity Investment Management Co. Ltd.Konka Suiyong Konka Suiyong Investment (Shenzhen) Co. Ltd.Shengxing Industrial Shenzhen Konka Shengxing Industrial Co. Ltd.Zhitong Technology Shenzhen Konka Zhitong Technology Co. Ltd.Konka Electronic Material Konka Electronic Material Technology (Shenzhen) Co. Ltd.Beijing Konka Electronic Beijing Konka Electronic Co. Ltd.Tianjin Konka Tianjin Konka Technology Co. Ltd.Suining Konka Industrial Park Suining Konka Industrial Park Development Co. Ltd.Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co. Ltd.Shanghai Konka Shanghai Konka Industrial Co. Ltd.Yantai Kangjin Yantai Kangjin Technology Development Co. Ltd.Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co. Ltd.Sichuan Konka Sichuan Konka Smart Terminal Technology Co. Ltd
5Konka Group Co. Ltd. Annual Report 2023
Yibin Smart Yibin Konka Smart Technology Co. Ltd.Shenzhen KONSEMI Shenzhen KONSEMI Co. Ltd.Chongqing Konka Chongqing Konka Technology Development Co. Ltd.Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co. Limited
Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co. Limited
Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd.Konka Cross-border (Hebei) Konka Cross-border (Hebei) Technology Development Co. Ltd.Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co. Ltd.Konka Huazhong Konka Huazhong (Hunan) Technology Co. Ltd.Wankaida Shenzhen Wankaida Science and Technology Co. Ltd.Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.Suining Jiarun Property Suining Jiarun Property Co. Ltd.Anhui Konka Anhui Konka Electronic Co. Ltd.Kangzhi Trade Anhui Kangzhi Trade Co. Ltd.Telecommunication Technology Shenzhen Konka Telecommunications Technology Co. Ltd.Konka Mobility Konka Mobility Co. Limited
Dongguan Konka Dongguan Konka Electronic Co. Ltd.Suining Konka Smart Suining Konka Smart Technology Co. Ltd.Chongqing Optoelectronic Technology Chongqing Konka Optoelectronic Technology Co. Ltd.Yibin Kangrun Yibin Kangrun Environmental Technology Co. Ltd.Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd.Yibin Kangrun Environmental Protection Yibin Kangrun Environmental Protection Power Generation Co. Ltd.Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co. Ltd.Jiangxi Konka Jiangxi Konka New Material Technology Co. Ltd.Jiangxi High Transparent Substrate Jiangxi High Transparent Substrate Material Technology Co. Ltd.Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co. Ltd.Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co. Ltd.Konka Huanjia Konka Huanjia Environmental Technology Co. Ltd.Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co. Ltd.Shanxi Konka Intelligent Shanxi Konka Intelligent Appliance Co. Ltd.Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co. Ltd.Jiaxin Technology Jiaxin Technology Co. Ltd.Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd.Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co. Ltd.Konka Unifortune Shenzhen Konka Unifortune Technology Co. Ltd.Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co. Ltd.Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co. Ltd.Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co. Ltd.Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd.Hainan Konka Technology Hainan Konka Technology Co. Ltd.Konka Ventures Konka Ventures Development (Shenzhen) Co. Ltd.Yibin Konka Incubator Yibin Konka Incubator Management Co. Ltd.Yantai Konka Yantai Konka Healthcare Enterprise Service Co. Ltd.Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co. Ltd.Konka Enterprise Service Guiyang Konka Enterprise Service Co. Ltd.
6Konka Group Co. Ltd. Annual Report 2023
Konka Eco-Development Shenzhen Konka Eco-Development Investment Co. Ltd.Konka Europe Konka (Europe) Co. Ltd.Hong Kong Konka Hong Kong Konka Limited
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
Kanghao Technology Kanghao Technology Co. Ltd.Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co. Limited
Chain Kingdom Semiconductor (Shaoxing) Chain Kingdom Semiconductor (Shaoxing) Co. Ltd.Hongjet Hongjet (Hong Kong) Company Limited
Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co. Ltd.Anlu Konka Anlu Konka Industry Operation Service Co. Ltd.Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Guizhou Konka New Material Technology Guizhou Konka New Material Technology Co. Ltd.Guizhou Kanggui Energy Guizhou Kanggui Energy Co. Ltd.Guangdong Xinwei Guangdong Xinwei Semiconductor Co. Ltd.Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co. Ltd.Nantong Kanghai Nantong Kanghai Technology Industry Development Co. Ltd.Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co. Ltd.Jiangxi Konka High-tech Park Jiangxi Konka High-tech Park Operation and Management Co. Ltd.Shangrao Konka Electronic Technology
Innovation Shangrao Konka Electronic Technology Innovation Co. Ltd.Guizhou Konka New Energy Guizhou Konka New Energy Material Technology Co. Ltd.Zhejiang Konka Electronic Zhejiang Konka Electronics Co. Ltd.Zhejiang Konka Technology Industry Zhejiang Konka Technology Industry Development Co. Ltd.Sichuan Hongxinchen Sichuan Hongxinchen Real Estate Development Co. Ltd.Xi'an Konka Intelligent Xi'an Konka Intelligent Appliance Co. Ltd.Xi'an Konka Network Xi'an Konka Network Technology Co. Ltd.Xi'an Kanghong Technology Industry Xi'an Kanghong Technology Industry Development Co. Ltd.Xi'an Konka Intelligent Technology Xi'an Konka Intelligent Technology Development Co. Ltd.Anhui Konka Low Carbon Anhui Konka Low Carbon Technology Co. Ltd.Kanghong Xintong Shenzhen Kanghong Xintong Investment Partnership (Limited Partnership)
Songyang Industry Operation Songyang Konka Smart Industry Operation Management Co. Ltd.Kangyan Technology Shenzhen Kangyan Technology Co. Ltd.Konka Photovoltaic Technology Konka Photovoltaic Technology Co. Ltd.Songyang Konka Intelligent Songyang Konka Intelligent Technology Development Co. Ltd.Konka North China Konka North China (Tianjin) Technology Co. Ltd.Zhongshan Kanghong Zhongshan Kanghong Electronic Technology Co. Ltd.Digital Technology Shenzhen Konka Digital Technology Development Co. Ltd.Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co. Ltd.Kangxingrui Renewable Resources Chongqing Kangxingrui Renewable Resources Co. Ltd.Chongqing Fangbing Real Estate Chongqing Fangbing Real Estate Co. Ltd.
7Konka Group Co. Ltd. Annual Report 2023
CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission
RMB RMB’0000 RMB’00000000 Expressed in the Chinese currency of RMB expressed in tens of thousands ofRMB expressed in hundreds of millions of RMB
8Konka Group Co. Ltd. Annual Report 2023
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Konka Group-A Konka Group-B Stock code 000016 200016
Previous stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbr. 康佳集团
Company name in English (if any) KONKAGROUP CO.LTD
Abbr. (if any) KONKAGROUP
Legal representative Zhou Bin
Registered address 15-24/F Konka R&D Center 28 Keji South Twelfth Road Science and Technology ParkYuehai Street Nanshan District Shenzhen Guangdong Province China
Zip code 518057
On 1 July 2015 due to the relocation of the Company Headquarters the registered
Past changes of registered address address has changed from OCT Nanshan District Shenzhen Guangdong Province Chinato 15-24/F Konka R&D Center 28 Keji South Twelfth Road Science and Technology
Park Yuehai Street Nanshan District Shenzhen Guangdong Province China.Office address 15-24/F Konka R&D Center 28 Keji South Twelfth Road Science and Technology ParkYuehai Street Nanshan District Shenzhen Guangdong Province China
Zip code 518057
Company website www.konka.com
Email address szkonka@konka.com
II Contact Information
Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat 24/F Konka R&D Center 28 Board Secretariat 24/F Konka R&D Center 28
Address Keji South Twelfth Road Science and Technology Keji South Twelfth Road Science and TechnologyPark Yuehai Street Nanshan District Shenzhen Park Yuehai Street Nanshan District Shenzhen
Guangdong Province China Guangdong Province China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
Email address szkonka@konka.com szkonka@konka.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this
Report is disclosed Securities Times etc.Media and website where this Report is
disclosed http://www.cninfo.com.cn/new/index
Board Secretariat 24/F Konka R&D Center 28 Keji South Twelfth Road Science
Place where this Report is lodged and Technology Park Yuehai Street Nanshan District Shenzhen Guangdong
Province China
IV Change to Company Registered Information
Unified social credit code 914403006188155783
Change to principal activity of the Company
since going public (if any) No change
Every change of controlling shareholder since
incorporation (if any) No change
9Konka Group Co. Ltd. Annual Report 2023
V Other Information
The independent audit firm hired by the Company:
Name Shinewing Certified Public Accountants LLP
Office address 9/F Block A Fuhua Mansion No.8 Chaoyangmen North Street Dongcheng DistrictBeijing China
Accountants writing signatures Tang Qimei and Liu Lihong
The independent sponsor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.√ Yes □ No
Reason for retrospective restatement:
Change to accounting policies
2022 2023-over-2022
2023 change (%)
2021
Before Restated Restated Before Restated
Operating 17849331429 29607854255 296078542 -39.71% 49106513669 49106513669revenue (RMB) .24 .27 55.27 .58 .58
Net profit
attributable to
the listed - - -
company’s 2163790053. 1471409748. 147046680 -47.15% 905352997.68 905470314.84
shareholders 17 21 6.68
(RMB)
Net profit
attributable to
the listed
company’s - - - - -
shareholders 2914445076. 2665550383. 266460744 -9.38% 3250798107. 3250680790.before 42 07 1.54 49 33
exceptional
gains and losses
(RMB)
Net cash
generated
from/used in - -
operating 553101277.90 528303041.83 528303041. 204.69% 808756394.11 808756394.11
activities 83
(RMB)
Basic earnings
per share -0.8986 -0.6111 -0.6107 -47.14% 0.3760 0.3760
(RMB/share)
Diluted
earnings per -0.8986 -0.6111 -0.6107 -47.14% 0.3760 0.3760
10Konka Group Co. Ltd. Annual Report 2023
share
(RMB/share)
Weighted
average return -32.58% -17.58% -17.57% -15.01% 10.33% 10.33%
on equity (%)
Change of 31
31 December 2022 December 2023 over31 December 31 December 2022 31 December 2021
2023(%)
Before Restated Restated Before Restated
Total assets 35824818212 38016368073 380233196 39874520 39882535977
(RMB) .66 .05 93.08 -5.78% 771.26 .55
Equity
attributable to
the listed 5644401184. 7640399721. 764145998 -26.13% 90952784 9095395753.company’s 65 99 0.68 36.41 57
shareholders
(RMB)
Reason for change to accounting policies and correction of accounting errors:
On 30 November 2022 the Ministry of Finance issued Interpretation No. 16 for the AccountingStandards for Business Enterprises which stipulates the “accounting treatments for deferredincome taxes associated with assets and liabilities arising from a single transaction to which theinitial recognition exemption does not apply” effective for the Company as of 1 January 2023.For lease liabilities and right-of-use assets recognised at the beginning of the earliest period of
financial statement presentation in which the provision is first implemented that give rise to
taxable temporary differences and deductible temporary differences as a result of a single
transaction to which the provision applies the Company has adjusted the cumulative effect to
retained earnings at the beginning of the earliest period of financial statement presentation and
other relevant financial statement items in accordance with the said provision and Accounting
Standard No. 18 for Business Enterprises—Income Tax.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative for the last three
accounting years and the latest independent auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern.□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative.√ Yes □ No
Item 2023 2022 Note
Operating revenue (RMB) 17849331429.24 29607854255.27
11Konka Group Co. Ltd. Annual Report 2023
Deductions from operating Scrap sales revenue utilities revenue lease
revenue (RMB) 712619709.55 823347409.73 revenue material sales revenue and otherrevenue irrelevant to the principal operations
Operating revenue net of
deductions (RMB) 17136711719.69 28784506845.54
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□Applicable √ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 4600647851.61 5871413320.33 4404631998.81 2972638258.49
Net profit attributable
to the listed company’s 152513923.41 -345754155.74 -521630694.97 -1448919125.87
shareholders
Net profit attributable
to the listed company’s
shareholders before -521453718.40 -370140652.01 -486155733.41 -1536694972.60
exceptional gains and
losses
Net cash generated
from/used in operating -1182725927.02 981175821.78 -120891719.52 875543102.66
activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or
interim reports.□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2023 2022 2021 Note
Gain or loss on disposal of non-current assets
(inclusive of impairment allowance write- 198866019.16 755498679.55 4047094117.70
offs)
Government subsidies charged to current 264798178.16 916334616.72 1352377548.16
12Konka Group Co. Ltd. Annual Report 2023
profit or loss (exclusive of government
subsidies consistently given in the
Company’s ordinary course of business at
fixed quotas or amounts as per governmental
policies or standards)
Gain or loss on debt restructuring -5378929.04 19777.25
Gain or loss on fair-value changes in
financial assets and liabilities held by a non-
financial enterprise as well as on disposal of
financial assets and liabilities (exclusive of -88236451.43 -17595638.89 67789442.65
the effective portion of hedges that arise in
the Company’s ordinary course of business)
Reversed portions of impairment allowances
for receivables which are tested individually 3055800.22 32624581.58
for impairment
Gain or loss on loan entrustments 118808006.95 119233091.33 80625356.41
Non-operating income and expense other
than the above -64433346.64 -97161898.46 48615769.37
Other gains and losses that meet the
definition of exceptional gain/loss 571315980.43 -1907936.23
Less: Income tax effects 239431992.39 299999504.47 1190629946.56
Non-controlling interests effects (net of
tax) 14087171.21 209414363.46 247833023.58
Total 750655023.25 1194140634.86 4156151105.17 --
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
√ Applicable □ Not applicable
Item Amount involved(RMB) Reason
As the Company disposed of certain interests in subordinate joint stock company and
Chutian ceased to have significant influence on the joint stock company the measurement of its
Dragon 574780174.75 investment was adjusted in the current period from a long-term equity investment (under
Co. Ltd. the equity method) to a held-for-trading financial asset which incurred an exceptional
gain.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Item Amount involved(RMB) Reason
Tax rebates
on software 5819853.78
Government subsidies given in the Company’s ordinary course of business at fixed
quotas or amounts as per government’s uniform standards
13Konka Group Co. Ltd. Annual Report 2023
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
Currently the Company's major businesses include consumer electronics memory chip trading and
semiconductor businesses. The relevant industries are described below:
(I) Consumer electronics industry
In the color TV industry recent years have seen China's market enter an era of stock adjustment.According to statistics from All View Cloud (AVC) the retail volume of China's color TV market in
2023 was 31.42 million units up 13.6% year on year and the retail value was RMB109.8 billion
down 2.3% year on year. With the continuous development of future display technologies
represented by Mini LED and Micro LED as well as the intelligent upgrade of various electronic
products driven by the Internet of Things (IoT) big data cloud computing and artificial
intelligence the development of new TV categories accelerated in 2023. The penetration rate of
new display technologies high refresh rates and large-size mid-to-high-end products has been
increasing. Regarding new display technologies Mini LED technology entered a phase of rapid
popularization in 2023. AVC's data show that the retail penetration rate of China's color TV Mini
LED market was 9.8% in 2023 up 5.4% from 2022. In terms of high refresh rates as living
standards continue to improve consumers' pursuit of quality viewing and gaming experiences has
become increasingly high. Consequently TVs with high refresh rates have seen a continuous rise in
sales due to their ability to provide superior image quality. AVC's statistics indicate that the retail
penetration rate of color TVs with refresh rates above 120Hz in China's market reached 31.9% in
2023 up 16.4% from 2022. Regarding large sizes against the backdrop of consumer upgrades the
trend of larger screen sizes in China's color TV market continues with a steady increase in the sales
share of products 75 inches and above. AVC's statistics show that the retail penetration rate of 75-
inch products in China's color TV market was 19.9% in 2023 up 6.4% from 2022.In terms of the white goods industry the pace of product upgrades accelerated in 2023 with
enhancements in basic features and performance. Simultaneously their products are more beautiful
healthy and integrated. This structural upgrade in products has driven the growth in sales of high-
quality home appliances. Regarding refrigerators according to AVC's statistics in 2023 the
refrigerator market reported a retail sales value of RMB133.3 billion up 7.0% year on year with a
retail sales volume of 38.31 million units up 1.5% year on year. The share of mid- to high-end
products continued to rise. For washing machines AVC's statistics indicate that the retail sales in
the domestic market amounted to RMB93.4 billion in 2023 up 5.8% year on year with a retail
volume of 40.05 million units up 3.4% year on year. Aside from the rise in sales volume the
average selling price of washing machines also saw a steady increase. Regarding air conditioners
14Konka Group Co. Ltd. Annual Report 2023
AVC's statistics show that China's domestic air conditioner sales reached 156.946 million units in
2023 up 10.4% year on year. This includes 90.541 million units sold domestically up 12.9% year
on year and exports totaling 66.405 million units up 7.3% year on year indicating an increase in
both domestic and export scales.(II) Semiconductor industry
The semiconductor industry is a strategic fundamental and leading industry that supports economic
and social development and safeguards national security. Driven by the development of 5G
artificial intelligence the IoT and intelligentialization the semiconductor industry is expected to
usher in a new wave of growth cycles. Among them semiconductor storage is the largest
subdivision in the semiconductor industry in recent years. At present South Korean companies
represented by Samsung and Hynix are in the leading position in the field of semiconductor storage.China has also accelerated in boosting the production capacity of semiconductor storage in recent
years. It is expected that the self-sufficiency rate will continue to increase.Micro LED is the prevailing trend and development direction of future display technology. The
industrial chain is divided into four main links: upstream chip manufacturing and mass transfer
midstream panel manufacturing and downstream complete machine application. The Micro LED
has wide industrial application and a broad market.II Principal Activity of the Company in the Reporting Period
(I) The consumer electronics business
This division primarily comprises the multimedia sub-division and the white goods sub-division
with details as follows:
1. The multimedia business
The Company's multimedia business faces the global market mainly including domestic color TV
business and export color TV business.The domestic sales of the Company’s colour TVs are realized mainly through B2B (Business-to-
Business) and B2C (Business-to-Consumer) with its branch companies business departments
and after-sales maintenance points operating across the country. And the Company profits from
the margins between the costs and the selling prices of its colour TVs.As for selling its colour TVs abroad the Company mainly relies on B2B. Its colour TVs are sold
to Asia Pacific Middle East Central & South America East Europe etc. And operating profit
source is also the differences between the costs and the selling prices of its colour TVs.
2. The white goods business
The white goods produced by the Company mainly include refrigerators washing machines air
conditioners freezers etc. which are sold through B2B and B2C mainly to the domestic market.And the Company profits from the margins between the costs and the selling prices of its white
15Konka Group Co. Ltd. Annual Report 2023
goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. Meanwhile the establishment of the Ningbo A/C production base as a joint
venture has helped the Company build its own A/C manufacturing capability. The weakness in the
front-loading washing machine technology has been overcome by the acquisition of Beko (Front-
loading Washing Machine) China Factory. In addition the Company went on a new path of
exploring the dishwasher world by setting up Xi’an Smart Appliances Park. The Company also
optimized the internal R&D production procurement sales and services processes integrated the
external channel resources to enable channel sharing between the upstream procurement processes
and downstream sales processes and improved the product sales structure and competitiveness of
the white goods business.(II) The memory chip trading and semiconductor business
Currently the Company is engaged in memory chips optoelectronics etc. with respect to the semi-
conductor business. In memory chips the Company primarily engages in packaging and testing of
memory chip products. In optoelectronics the Company primarily develops Micro LED-related
products. The Company's memory chip trading business mainly focuses on the memory chips
involved in the Company's traditional main business. The operating profit comes from the price
difference between upstream procurement and downstream sales. This business is able to facilitate
the development of the semiconductor business by helping accumulate customer resources for the
semiconductor and chip business provide sales channels and achieve accurate matching of market
demand with a shortened product development period and a lower risk of mismatching of R&D
and market demand.(III) The environment protection and new materials business
In this business renewable resources are collected sorted processed distributed and sold.III Core Competitiveness Analysis
The Company’s core competitiveness lies in its manufacturing ability R&D ability brand
marketing network and human resources. In terms of manufacturing ability the Company has
carried out intelligent upgrading of manufacturing bases in Anhui Dongguan Suining Xinxiang
etc. of which the Anhui Konka plant has been awarded the title of "National Intelligent
Manufacturing Demonstration Factory" with an advanced intelligent manufacturing level in theindustry. It has developed a three-tier R&D system of “Research institute+key labs+productdevelopment centers” established artificial intelligence internet of things comprehensive laboratory
and 5G Ultra HD laboratory with major universities or scientific research institutions established
academician workstation and built a technology research alliance matching the industrial layout
with nearly 100 core technologies and about 1500 R&D talents. The Company has introduced
around 100 experts on the micro LED project. In terms of brand the Company continues to
16Konka Group Co. Ltd. Annual Report 2023
promote brand strategy construction system construction image construction and cultural
construction focuses on improving the scientific and international image of the enterprise
strengthens the brand status has a certain brand awareness and reputation in the consumer group
and has good brand credit in banks and other financing channels. In terms of marketing channels
the Company innovates channel reform cooperates online and offline for win-win results and
strives for development at home and abroad. Regarding offline channels the Company has 47
branches more than 100 offices and more than 3000 after-sales service shops across China and
the marketing and service network is all over the country; as for online channels the Company has
settled in Tmall JD Suning VIPshop Pinduoduo and other mainstream e-commerce platforms to
innovate and develop live e-commerce business and seek a new growth pole for business
development; overseas channel the company The Company's business covers Latin America
Europe Asia Pacific and other countries and regions with a sound marketing network. In terms of
human resources the Company boasts a leadership team of many years of management and
industry experience as well as a high quality execution team.IV Core Business Analysis
1. OverviewIn 2023 the Company adopted a new development framework of “One Axis Two Wheels andThree Growth Drivers”. It fully implemented lean management and carried out campaigns such as
asset revitalisation cost control and efficiency improvement legal person reduction and cost
reduction and profit increase. Also the Company has restructured its business layout through
organisational restructuring and optimisation of business entities and optimised its resources to
focus on its two main businesses of consumer electronics and semiconductors laying the
foundation for its next step of high-quality development.For 2023 the Company recorded operating revenue of RMB17.849 billion down 39.71% year on
year; a net profit attributable to its shareholders of RMB-2.164 billion representing a year-on-year
drop of 47.15%; and net cash generated from operating activities of RMB553 million a turnaround
from loss to profit.As a result of the following reasons the Company saw a year-on-year decline in operating revenue
and a relatively large loss in 2023.
(1) Main causes of operating revenue decline in 2023
In 2023 the Company focused on its core business and promoted business restructuring by
proactively optimizing part of industry trade and environmental protection business segments
which failed to empower the main business and had low gross margin. As a result the Company
experienced a certain degree of decline in operating revenue.
17Konka Group Co. Ltd. Annual Report 2023
(2) Main causes of net loss in 2023
* In 2023 the Company incurred a certain degree of loss in its colour TV business due to factors
such as product strategy adjustments and ongoing supply chain fluctuations. In terms of domestic
sales of colour TVs the Company made systematic adjustments to its product planning and sales
strategies during the current period. The mid-to-high-end new products X6/M6/R7 were mainly
launched in the second half of 2023. However the introduction and sales ramp-up cycle of these
new TV products lagged behind failing to fully compensate for the clearance losses resulting
from the discontinuation of old models. This to some extent affected the sales scale and total
profit of the Company's domestic TV business. Regarding TV exports and OEM business due to
the continuous fluctuation in upstream supply chain costs in 2023 the gross margin of orders
delivered by the Company's TV exports and OEM business was relatively low. Although strategic
adjustments helped to gradually improve the operational quality in the second half of 2023 the
gross margin for the full year 2023 was still unable to fully cover rigid expenses.* In 2023 in accordance with the Company's development strategy and considering the
macroeconomic environment the Company upheld the principle of "industrial park service
aligned with core business strategy" and continued to reduce its business in industrial parks. There
were virtually no new large-scale industrial park projects in 2023 resulting in a decrease in
related income compared to the previous year.* In 2023 although the Company's semiconductor business made certain achievements in
several key industrial chain technologies it remained in the early stages of industrialization. R&D
investment continued to grow but scale and efficiency in output were not achieved affecting the
overall operating profit of the Company.* In 2023 based on the principle of prudence the Company made a provision for asset
impairment of approximately RMB1017 million in accordance with accounting policies and
estimates resulting in a decrease in profit.* In 2023 the Company strategically optimized non-core operations such as industry trade and
environmental protection resulting in a narrowing of profit sources and a decrease in related
income.
(3) Key tasks for 2023
* The business structure and organizational system continued to be optimized
Under the new development strategy the Company focused on two core businesses i.e. consumer
electronics and semiconductors and actively promoted the adjustment of its business structure
and the optimization of its organizational system.In terms of business adjustments the Company optimized non-core businesses by gradually
withdrawing from industry trade and environmental protection segments to focus resources on its
two core businesses - consumer electronics and semiconductors.
18Konka Group Co. Ltd. Annual Report 2023
In terms of organizational optimization the Company continued to refine its organizational
structure by further improving the personnel remuneration system and implementing full-scope
control over the total workforce to effectively enhance personnel efficiency. This ensured that the
organizational system operated more efficiently.* Lean management yielded tangible results.In 2023 the Company implemented the lean management concept in various aspects of research
production supply sales and services as well as the entire chain of investment financing
management and withdrawal. With a focus on "people positions and tasks" it implemented
meticulous management down to the smallest detail and intensified in-depth efficiency
improvement cost control and fee reduction efforts to optimize and enhance operating cash flow.Including:
As for cost control and efficiency improvement the Company adhered to the goal of "maximizing
cost efficiency" and continued to strengthen process control around aspects such as "performance
drivers classified guidance lean management key improvement areas and integrated
governance".Regarding cost reduction and profit increase the Company implemented precise cost reduction in
procurement. On one hand it focused on the prices of bulk materials and supply-demand trends
enhancing its ability to analyze and make decisions regarding raw material markets. On the other
hand it strengthened procurement process control to ensure that market fluctuations were aligned
with changes in supply and demand structures.* Product capabilities were effectively enhanced.In 2023 the Company was guided by market demand led by technological innovation and
positioned products as the core to coordinate research production supply sales and services. It
maintained the mindset of creating fine products and adopted a quality-oriented approach to
make refine and optimize products and enhance the ability to generate gross profit from products.Regarding colour TVs the Company completed the upgrading and iteration of domestically sold
products with all 12 models of the four major new product series entering mass production as
planned. Exported products focused on promoting the level of product intelligence with Google
Android system platform certification completed. In 2023 the gross profit of the colour TV
business increased by 17.72% YoY. For white goods the Company launched new products
including 500-liter side-by-side refrigerators the Zhencai series washing machines and the
Zhinyin series air conditioners. The Frestec 509-liter freestanding refrigerators with five-layer
sterilization technology entered mass production while dishwasher production entered the small
batch testing phase. In 2023 the gross profit of the white goods business grew by 15.00% YoY. In
terms of PCB the Company successfully achieved significant improvements in the number of
layers inner and outer layer circuitry and circuit production capabilities. The proportion of high-
19Konka Group Co. Ltd. Annual Report 2023
end products with multi-layer boards and metal-based boards significantly surged facilitating the
completion of product lines and propelling the brand towards a more upscale positioning. In 2023
the gross profit of the PCB business increased by 54.46% YoY.* Manufacturing capabilities significantly strengthened
In 2023 the Company adhered to professional and differentiated development strengthened lean
manufacturing built a solid clientele and solidified manufacturing capabilities. In terms of colour
TVs the Company completed the construction of a production line for 120-inch ultra-large panels.The production efficiency of the Ankang Green Smart Plant improved significantly year-on-year
and the Company also expanded its customer base to include several strategic clients. Regarding
white goods the Company's per capita efficiency for white goods products continued to improve.It established preliminary manufacturing capabilities for dishwashers and systematically advanced
the Frestec refrigerator and freezer new smart plant projects. This initiative enabled the Company
to build comprehensive manufacturing capabilities for "refrigerators washing machines air
conditioners and kitchen appliances" across all product categories and it successfully onboarded
several strategic clients. For PCB the Company's new smart plant in Suining officially
commenced production diversifying the product lines of multi-layer boards and HDI (high-
density interconnect) boards. It also expanded its customer base to include leading clients in new
energy automotive electronics Mini LED optoelectronic displays and other fields. The
proportion of mid-to-high-end products saw a significant increase.* International business steadily advanced
On one hand the Company drove scalable development through differentiated strategies. The
Company strengthened its differentiated operations in the colour TV business. In the Middle East
and Africa markets it focused on local manufacturing in Egypt. In the European market it was
driven by a combination of "best-selling + high-end" products. In emerging markets it leveraged
smart TV products as a key strategy. In 2023 the Company achieved rapid growth in TV export
revenue. In the white goods business the Company fully utilized the advantages of the China-
Europe Railway Express vigorously expanding into the European market. It focused on core
clients and cultivated major clients in regions such as Russia Germany and West Africa.Overseas business revenue experienced remarkable year-on-year growth.On the other hand it constructed its own brand pattern through refined operations. In the colour
TV business by implementing hierarchical customer management and optimizing resource
allocation the Company stabilized its presence in traditional markets such as the Middle East
Latin America and Europe. Simultaneously it expanded into eight blank areas including Australia
Algeria and Kazakhstan. Moreover it assisted clients in Brazil Japan Russia Gulf countries
and others in exporting customized local marketing solutions. As a result the export revenue of its
proprietary brand business witnessed significant growth in 2023.
20Konka Group Co. Ltd. Annual Report 2023
* Technological breakthroughs and industrial transformation were rapidly implemented
The Company insists on building an original technology innovation hub focusing on advancing
core technological breakthroughs and industrial transformation. In terms of core technological
breakthroughs the Company has achieved certain results in areas such as hybrid mass transfer
mass repair chip miniaturization and Mini LED direct view display. Chongqing Konka
Optoelectronic Technology Co. Ltd. was included in the list of "Science and Technology Reform
Demonstration Enterprises" by the SASAC and its application to the SASAC for "Sailing
Enterprises" has entered the defense stage. In terms of industrial transformation the Micro LED
chip and mass transfer segments have achieved sample delivery and small-scale sales to multiple
clients. The Mini LED direct view display segment focused on cost reduction sales to major
clients and collaboration with engineering clients and developed more than ten customers in total.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20232022
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 17849331429.24 100% 29607854255.27 100% -39.71%
By operating division
Consumer
electronics 10204905315.64 57.17% 10871843067.02 36.72% -6.13%
Memory chip
trading and 3397161542.60 19.03% 10411179055.37 35.16% -67.37%
semiconductor
Environment protec
tion and new 1145732124.31 6.42% 1548557255.52 5.23% -26.01%
materials
Other 3101532446.69 17.38% 6776274877.36 22.89% -54.23%
By product category
Color TVs 4708450488.99 26.38% 5023097945.06 16.97% -6.26%
White goods 4257423386.71 23.85% 3929504730.97 13.27% 8.35%
Memory chip
trading and 3397161542.60 19.03% 10411179055.37 35.16% -67.37%
semiconductor
Environment protec
tion and new 1145732124.31 6.42% 1548557255.52 5.23% -26.01%
materials
PCB 476456155.62 2.67% 663849487.53 2.24% -28.23%
Other 3864107731.01 21.65% 8031665780.82 27.13% -51.89%
By operating segment
Domestic 10716944822.00 60.04% 14845908414.38 50.14% -27.81%
Overseas 7132386607.24 39.96% 14761945840.89 49.86% -51.68%
By marketing model
Direct sales 5565516534.04 31.18% 5773701603.23 19.50% -3.61%
Distribution 12283814895.20 68.82% 23834152652.04 80.50% -48.46%
21Konka Group Co. Ltd. Annual Report 2023
(2) Operating Division Product Category Operating Segment or Marketing Model
Contributing over 10% of Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in
Operating revenue Cost of sales Gross profitmargin operating revenue
YoY change in
(%) cost of sales (%)
gross profit margin
(%)
By operating division
Consumer 10204905315 9670394039.electronics .64 66 5.24% -6.13% -7.61% 1.51%
Memory chip
trading and 3397161542. 3433148164.60 76 -1.06% -67.37% -66.94% -1.31%semiconductor
By product category
Color TVs 4708450488. 4756604973.99 05 -1.02% -6.26% -6.40% 0.14%
White goods 4257423386. 3790414584.71 40 10.97% 8.35% 7.58% 0.63%
Memory chip
trading and 3397161542. 3433148164.60 76 -1.06% -67.37% -66.94% -1.31%semiconductor
By operating segment
Domestic 10716944822 10283636801.00 .86 4.04% -27.81% -27.87% 0.07%
Overseas 7132386607. 6865399948.24 64 3.74% -51.68% -52.76% 2.18%
By marketing model
Direct sales 5565516534. 5405059203.04 62 2.88% -3.61% -2.40% -1.20%
Distribution 12283814895 11743977546.20 .88 4.39% -48.46% -49.49% 1.94%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2023 2022 Change (%)
Unit sales 0000 units 4.09%
Consumer 1070 1028
electronics Output 0000 units 1080 983 9.87%
Inventory 0000 units 81 73 10.96%
Any over 30% YoYmovements in the data above and why:
□ Applicable √ Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting
Period
□Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By product category
Unit: RMB
20232022
Product category Item Change (%)
Cost of sales As % of total cost of Cost of sales As % of total cost
22Konka Group Co. Ltd. Annual Report 2023
sales (%) of sales (%)
Color TVs Color TVs 4756604973.05 27.74% 5081621150.13 17.65% -6.40%
White goods White goods 3790414584.40 22.10% 3523413567.24 12.24% 7.58%
Memory chip Memory chip
trading and trading and 3433148164.semiconductor semiconducto 76
20.02%10384753139.4036.07%-66.94%
r
Environment prote Environment
ction and new protection 1134022493.materials and new 39
6.61%1511874387.745.25%-24.99%
materials
PCB PCB 420480569.60 2.45% 627609981.96 2.18% -33.00%
Other Other 3614365965.30 21.08% 7659366167.41 26.61% -52.81%
Note:
Cost of sales changed accordingly with operating revenue.
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
Name of subsidiary Registered capital The Company’s Date of(RMB) interest (%) change Reason for change
Anhui Konka Zhilian E-Commerce Co.
50000.002023-6-1
Ltd.De-registered
Jiangsu Konka Special Material
100000.002023-10-8
Technology Co. Ltd.Sichuan Hongxinchen Real Estate
250049.002023-2-27
Development Co. Ltd.Yibin Kangrun Environmental
76000.002023-11-27
Protection Power Generation Co. Ltd.Chongqing Kangxingrui Environmental
50000.002023-12-5
Technology Co. Ltd.Zhongshan Kanghong Electronic
70000.002023-12-19
Technology Co. Ltd.Guizhou Kanggui Energy Co. Ltd. 10000 0.002023-12-25 Equity transfer
Kanghong (Yantai) Environmental
30000.002023-12-28
Technology Co. Ltd.Chongqing Fangbing Real Estate Co.
200049.002023-2-27
Ltd.Chongqing Kangxingrui Renewable
60000.002023-12-5
Resources Co. Ltd.Chongqing Kangxingrui Scraped
100000.002023-12-5
Automobile Recycling Co. Ltd.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting
Period
□Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 5029937059.53
Total sales to top five customers as % of total sales of the
Reporting Period (%) 28.17%
Total sales to related parties among top five customers as % of
total sales of the Reporting Period (%) 0.00%
23Konka Group Co. Ltd. Annual Report 2023
Top five customers:
No. Customer Sales revenue contributed for As % of total sales revenuethe Reporting Period (RMB) (%)
1 Customer A 1935159220.70 10.84%
2 Customer B 1217950598.75 6.82%
3 Customer C 694693692.94 3.89%
4 Customer D 689729963.97 3.86%
5 Customer E 492403583.17 2.76%
Total -- 5029937059.53 28.17%
Other information about major customers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors supervisors executive officers core technicians over 5% shareholders actual controller
or any other related parties held equity interests in the major customers directly or indirectly.Major suppliers:
Total purchases from top five suppliers (RMB) 5074672418.49
Total purchases from top five suppliers as % of total purchases
of the Reporting Period (%) 31.96%
Total purchases from related parties among top five suppliers
as % of total purchases of the Reporting Period (%) 0.00%
Top five suppliers:
No. Supplier Purchase in the ReportingPeriod (RMB) As % of total purchases (%)
1 Supplier A 1718825666.93 10.82%
2 Supplier B 1268987192.38 7.99%
3 Supplier C 704760127.46 4.44%
4 Supplier D 698255754.27 4.40%
5 Supplier E 683843677.44 4.31%
Total -- 5074672418.49 31.96%
Other information about major suppliers:
√ Applicable □ Not applicable
None of the top five customers were related parties of the Company. And none of the Company’s
directors supervisors executive officers core technicians over 5% shareholders actual controller
or any other related parties held equity interests in the major customers directly or indirectly.
3. Expense
Unit: RMB
2023 2022 Change (%) Reason for anysignificant change
Selling expense 1145124848.96 1240144735.77 -7.66%
Administrative expense 807527910.20 949647590.28 -14.97%
Finance costs 562016110.24 522423743.18 7.58%
R&D expense 497993759.86 543882024.89 -8.44%
4. R&D Investments
√ Applicable □ Not applicable
24Konka Group Co. Ltd. Annual Report 2023
Names of
main R&D Project objectives Project progress Objectives to be achieved Expected impact on the
projects Company
To drive the
development and
breakthrough of key To further improve the
core technologies in hardware facilities for
the Micro LED display To achieve expected mass transfer and repair
Laser direct industry along with The project has passed based on the existing
transfer the industrialization its mid-term inspection
benchmarks in terms of Micro
and wafer testing trials to LED display mass transfer
mass transfer
technology and localization of yield efficiency the number foundation enhancing
development equipment and to verify compliance are of chips repaired in a single the Company's
strengthen the underway. attempt and yield after repair. capabilities in the field
upstream and of Micro LED laser
downstream supply mass transfer and repair
chain of the Micro technology.LED industry.To verify the
production process Optical performance
stability of red light meets the requirements
Mini chip chips in epitaxy and for commercial displays. To meet commercial display The production capacity
performance chip manufacturing Plans are underway to optical performance
improvement and to introduce them start mass production requirements and initiate mass
of the epitaxy and chip
production. lines is validated.into commercial following the completion
display production in of the final setup.small batches.Micro LED To enhance chip Development of greenperformance to meet and blue light chips has To meet performance and To meet the needs ofchip
performance the needs of internal been completed with
yield targets continuously internal and external
and external ongoing efforts to further improving the input-output customers and proceedenhancement customers. enhancements. ratio of red light chips. to industrialization.To meet the demand
Development for metal substrates in
of metal new energy and energy Entering the high-end
press-fit storage fields broaden
Samples have been
the product line and submitted for customer
To start small-scale production product market will
hybrid testing. in 2024. enhance the Company's
substrates enhance the competitiveness.Company's
technological level.To independently Preliminary market To enhance theDevelopment develop projects that research and material Company's technologyof 5G metal meet the requirements preparation have been To enter industrialization by reserves improve R&Dsubstrate for high-tech completed and the 2025. capabilities andproducts enterprise certification. project is currently in the maintain a technologicaltrial production stage. lead.Research and Technology development
industrializati has been completed
on of precise To achieve precise applied to products and
fresh-keeping preservation of mass production has
To improve the
different food been realized. The To complete the development Company's refrigeratorand
intelligent materials within the technology project won
of new technology and realize precise fresh-keeping
storage refrigerator enhancing the third prize of Science
its application in a series of technology level and
the preservation effect and Technology Progress products. enhance producttechnology
for household of the refrigerator. Award of China National
competitiveness.refrigerators Light Industry Council in2023.To achieve the
Development development of high-
of high- performance Mini Technology-to-product Related products have been To enhance theperformance LED backlight conversion has been competitiveness of the
Mini LED technology and commercialized. launched in batches. Company's products.backlight productize the
technology.
25Konka Group Co. Ltd. Annual Report 2023
Details about R&D personnel:
2023 2022 Change (%)
Number of R&D personnel 1479 1537 -3.77%
R&D personnel as % of total
employees 10.48% 10.59% -0.11%
Educational background of R&D personnel
Bachelor’s degree and below 1349 1398 -3.51%
Master’s degree 124 131 -5.34%
Doctoral degree 6 8 -25.00%
Age structure of R&D personnel
Below 30 695 716 -2.93%
30-40551573-3.84%
Over 40 233 248 -6.05%
Details about R&D investments:
2023 2022 Change (%)
R&D investments (RMB) 497993759.86 543882024.89 -8.44%
R&D investments as % of operating
revenue 2.79% 1.84% 0.95%
Capitalized R&D investments (RMB) 0.00 0.00 0.00
Capitalized R&D investments as % of
total R&D investments 0.00% 0.00% 0.00%
Reason for any significant change in R&D personnel composition and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2023 2022 Change (%)
Subtotal of cash generated from
operating activities 18703945979.20 33467042610.14 -44.11%
Subtotal of cash used in
operating activities 18150844701.30 33995345651.97 -46.61%
Net cash generated from/used in
operating activities 553101277.90 -528303041.83 204.69%
Subtotal of cash generated from
investing activities 2481589961.16 5299153383.77 -53.17%
Subtotal of cash used in
investing activities 2013333188.02 4972918573.56 -59.51%
Net cash generated from/used in
investing activities 468256773.14 326234810.21 43.53%
Subtotal of cash generated from
financing activities 11690214069.69 21373734199.02 -45.31%
Subtotal of cash used in
financing activities 12521398097.40 21706022136.76 -42.31%
Net cash generated from/used in
financing activities -831184027.71 -332287937.74 -150.14%
Net increase in cash and cash
equivalents 212872338.65 -506435208.13 142.03%
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
26Konka Group Co. Ltd. Annual Report 2023
Net cash generated from/used in operating activities changed primarily because with decreased
inventories cash payments for goods and services as a percentage of cash inflows from sales
declined year on year.Net cash generated from/used in investing activities changed primarily because cash payments for
construction and acquisition of fixed assets intangible assets and other long-term assets declined
year on year.Net cash generated from/used in financing activities changed primarily because borrowings
declined year on year.Reason for any big difference between the net operating cash flow and the net profit for this
Reporting Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Source/Reason Recurrent or not
Change to the
Return on investment 675405221.53 -24.86% measurement methodof investee company in Not
the current period
Change to the
Gain/loss on changes -97937910.89 3.60% measurement methodin fair value of investee company in Not
the current period
Impairments of
Asset impairments -1017195966.23 37.43% receivables and Not
inventories
Increased gains that
were not directly
Non-operating income 26263072.49 -0.97% related to the Not
Company’s routine
operations
Non-operating expense 156685855.03 -5.77% Not
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2023 1 January 2023 Change in Reason for any
Amount As % of total As % of total
percentage significant
assets Amount assets (%) change
Monetary 6506359577.assets 02 18.16% 5988095490.71 15.75% 2.41%
Accounts 1726545973.receivable 08 4.82% 2036734836.22 5.36% -0.54%
Contract assets 2190385.93 0.01% 0.00% 0.01%
Inventories 3249897700.98 9.07% 4409767756.22 11.60% -2.53%
Investment 1470226723.property 87 4.10% 802407844.60 2.11% 1.99%
Long-term
equity 5566483863.29 15.54% 6351232955.58 16.70% -1.16%investments
Fixed assets 5218297745. 14.57% 4114029693.38 10.82% 3.75%
27Konka Group Co. Ltd. Annual Report 2023
16
Construction in
progress 860899498.68 2.40% 1990361377.07 5.23% -2.83%
Right-of-use
assets 197054423.17 0.55% 50019838.68 0.13% 0.42%
Short-term 6390592056.borrowings 27 17.84% 7579559304.97 19.93% -2.09%
Contract
liabilities 527975160.12 1.47% 601044358.35 1.58% -0.11%
Long-term 7779150079.borrowings 88 21.71% 8906931402.89 23.42% -1.71%
Lease liabilities 160218818.92 0.45% 36586639.16 0.10% 0.35%
Indicate whether overseas assets account for a larger proportion of the total assets.□ Applicable √ Not applicable
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
Beginning fair-value fair-value
Impairment
allowance for Purchased in Sold in theItem Other Endingamount changes in changes the Reporting Reportingthe Reporting charged to the ReportingPeriod Period Period
changes amount
Period equity
Financial assets
1. Trading
financial
assets -
(derivative 0.00 335611963. 974897430. 169648766. 469636700.financial 64 42 00 78
assets
excluded)
2. Derivative
financial 0.00
assets
3.
Investments
in other debt
obligations
4.
Investments
in other 23841337.1 23841337.1
equity 6 6
instruments
5. Other non-
current 263966227 22348324.9 1200000.00 653534200. 200967639financial 3.32 5 27 8.00
assets
Subtotal of -
financial 266350361 335611963. 22348324.9 0.00 976097430. 823182966.0.48 5 42 27 0.00
250315443
assets 64 5.94
Investment
property 0.00
Productive
living assets 0.00
Other 237187228. 0.00 0.00 0.00 173396326. 237187228.44 14 44 0.00
173396326.
14
Total of the 290069083 -
above 8.92 335611963.
22348324.90.00114949375106037019267655076
6456.564.71
0.002.08
Financial
liabilities 0.00 0.00
Particulars about other changes:
Gain/loss on fair- Impairment
Item Beginning value changes in Cumulative fair-value allowance for
Purchased in Sold in the
amount the Reporting changes charged to equity the Reporting the Reporting Reporting
Other Ending amount
Period Period Period Period
changes
Receivables 237187228.44 173396326.14 237187228.44 173396326.14
28Konka Group Co. Ltd. Annual Report 2023
financing
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value(RMB) Reason for restriction
Of which RMB384011696.60 is security deposits put in pledge for loans or the
Monetary assets 831575227.47issuance of bank acceptance bills; RMB226611500.00 is term deposits that cannot
be withdrawn in advance; and RMB220952030.87 is restricted for other reasons.Accounts
receivable 2474071.67In pledge for loan
Notes receivable 209288446.67In pledge for the issuance of bank acceptance bill
Affected by the small shareholder case of the subsidiary the book value of the
Inventories 599475045.44sealed inventory is 49679547.48 yuan and the company has not waived its claims;The year-end book value of inventory used for mortgage loans is 549795497.96
yuan.Investment property 585984804.04As collateral for loan
Fixed assets 1689602310.18As collateral for finance lease loan and former shareholder guarantee
Intangible assets 620594057.60As collateral for finance lease loan and former shareholder guarantee
Construction in
progress 40629663.23As collateral for loan
Total 4579623626.30
VII Investments Made
1. Total Investment Amount
√Applicable□ Not applicable
Amount of Reporting Period (RMB) Amount of the same period of last year(RMB) Change (%)
1483759951.044490904118.80-66.96%
2. Major Equity Investments Made in the Reporting Period
□Applicable √ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Reason
Accumula Accumu for not
Fixed Input tive actual lative meeting
Investm assets Industry amount input Pro
Estimate realized the Disclosu Disclosu
Item ent investm involved in the amount as
Capital gres d revenue scheduleresources revenue s as of and re date re indexmethod ent or Reportin of the s s the expecte (if any) (if any)not g Period period-
end period- dend revenue
s
Donggu
an
Konka Self- Electron 527632 5977727 Self- andIntellige 2017-
nt build
Yes ic 58.07 64.56 bank loan- N/Aindustry funded 03-11 http://w
Industri ww.cnin
al Park fo.com.c
Suining n/new/in
Konka dex
Electron
ic Self- ElectronYes ic 775218 5609269 Self- 2018-Technol build industry 92.09 43.76 funded
N/A 10-17
ogy
Industri
al Park
29Konka Group Co. Ltd. Annual Report 2023
Chongqi
ng
Konka
Semicon Self- Electron Self- andductor build Yes ic
68261565925812019-
Photoele industry 42.5 40.16
bank loan- N/A
funded 06-14
ctric
Industri
al Park
Frestec
Refriger Self- ElectronYes ic 211647 4594455
Self- and
bank loan- N/A 2020-ation build 231.52 61.07 07-21
Park industry funded
Xi’an
Konka
Smart
Applian Self- Electron 416624 5962866 Self- and 2021-
ces build Yes ic 730.62 66.50 bank loan- N/A
Headqu industry funded
arters
Project
Total -- -- -- 826818 2873690654.80 076.05 -- -- -- -- --
Note: Dongguan Konka Intelligent Industrial Park has been completed and accepted. Xi’an Konka
Smart Appliances Headquarters Project has been put into use. Suining Konka Electronic
Technology Industrial Park and Frestec Refrigeration Park are under construction. Regarding the
Semiconductor Photoelectric Research Institute of Chongqing Konka Semiconductor Photoelectric
Industrial Park the infrastructure of the first phase has been completed and accepted with the
remaining infrastructure construction ongoing.
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Acc Accu
Co ount Beg Gain/Loss mulat
Sou
Variet de Name Initial ing inni on fair ed fair
Purch
ased Sold Gain/l Endin
rce
y of of of mea ng value value in oss in g
of
investme
securi sec securit sure carr changes chang
in Accoun inve
nt cost men ying in es Repor
Repor Repor carryi ting title stm
ty uri y ting ting ng
ty t valu Reporting charg
ting ent
met e Period ed to Period
Period Period value fund
hod equity s
Dome Chutia Fair Self
stic/F 00 n 9748974 valu - 97489 16964 - 46963 Trading -
oreign 30 Drago e 0.00 335611963 0.00 7430.4 8766.0 46591 6700.7 financia40 30.42stock n met .64 2 0 299.41 8 l assets
fund
hod ed
Other securities
investments held at the 0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
-9748916964-46963
Total 974897430.42 -- 0.00 335611963 0.00 7430.4 8766.0 46591 6700.7 -- --.6420299.418
Disclosure date of announcement on board’s
approving securities investment (if any) 4 April 2023
Disclosure date of announcement on
shareholders’ meeting approving securities N/A
investment (if any)
(2) Investments in Derivative Financial Instruments
□Applicable √ Not applicable
30Konka Group Co. Ltd. Annual Report 2023
No such cases in the Reporting Period.
5. Use of Raised Funds
□Applicable √ Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□Applicable √ Not applicable
IX Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10%
effect on the Company’s net profit
Unit: RMB
Relatio
nship
Name with the Principal activity Registeredcapital Total assets Net assets
Operating
revenue Operating profit Net profitCompa
ny
Shenzhen Konka Subsidi Manufacturing
Circuit Co. Ltd. ary and sale of
RMB100000
0000 643458460.23 451677708.59 76790723.30 9997602.71 9795415.03electronics
Anhui Konka
Tongchuang Subsidi Manufacturing
Electrical ary and sale of
RMB800000
0001811403982.33823926619.91
3395712049.5
847468328.7647607805.41
Appliances Co. Ltd. electronics
Hong Kong Konka Subsidi Export & import
Co. Ltd. ary of electronics HKD500000 3045265073.97 431256933.56
2726423284.9
039923157.6528484645.82
Subsidiaries obtained or disposed of in the Reporting Period:
√Applicable□ Not applicable
Subsidiary How subsidiary was obtained or disposed Effects on overall operations andin the Reporting Period operating performance
Anhui Konka Zhilian E-Commerce Co.Ltd.De-registered For better allocation of assets
Jiangsu Konka Special Material
Technology Co. Ltd.Sichuan Hongxinchen Real Estate
Development Co. Ltd.Yibin Kangrun Environmental Protection
Power Generation Co. Ltd.Chongqing Kangxingrui Environmental
Technology Co. Ltd.Zhongshan Kanghong Electronic Beneficial to the development of theCompany’s relevant business and bring
Technology Co. Ltd. Equity transfer about a certain amount of gains
Guizhou Kanggui Energy Co. Ltd.Kanghong (Yantai) Environmental
Technology Co. Ltd.Chongqing Fangbing Real Estate Co.Ltd.Chongqing Kangxingrui Renewable
31Konka Group Co. Ltd. Annual Report 2023
Resources Co. Ltd.Chongqing Kangxingrui Scraped
Automobile Recycling Co. Ltd.Information about principal subsidiaries and joint stock companies:
None
X Structured Bodies Controlled by the Company
□Applicable √ Not applicable
XI Prospect of the Company’s Future Development
In 2024 the Company will follow the new development strategy of "One Axis Two Wheels and
Three Growth Drivers" and adhere to long-term value-oriented principles as well as the operational
strategy of focusing on the long term making profit before expansion and improving specialization
before consolidation. It will also deepen professional integration implement lean management and
promote high-quality development. The Company’s main tasks in 2024 are listed as follows:
(I) Adhere to the spirit of reform and comprehensively deepen the new development strategy
First reform and adjust the business structure. The Company will allocate resources to support the
development of its core business focusing on driving the growth and profitability of the white
goods and PCB sectors. Lean management will be implemented to enhance value creation and
reduce losses in the colour TV business. Innovation efforts will be directed towards capitalization
and efficiency output of the semiconductor business thereby creating a specialized business matrix.Second reform and adjust the product structure. First the Company will establish an eco product
matrix for consumer electronics to drive systematic and ecological product operations. Second the
Company will focus on optimizing the product mix of its core business increasing investment in
R&D resources fixed assets talent pool and other areas. Last the Company will strengthen
product synergy and leverage its advantages in optoelectronic semiconductor technology PCB and
semiconductor memory supply chain to promote the high-end and differentiated development of
consumer electronics products.Third reform and adjust the structure of production capacity allocation. The Company will focus its
resources on steadily advancing the full operation of the PCB factory in Suining and the successful
establishment of washing machine and air conditioner production bases. It will also intensify efforts
to expand OEM business aiming to enhance the operational performance of manufacturing
factories through economies of scale.Fourth reform and adjust the organizational structure of human resources. The Company will
strengthen the compatibility between production personnel and product output control the overall
labor force and increase per capita output. It will also continuously recruit top scientific research
personnel and overseas talents improve incentives for enhancing personnel effectiveness and boost
the initiative and enthusiasm of employees to improve productivity and efficiency.Fifth reform and adjust the direction of science technology and innovation. The colour TV
32Konka Group Co. Ltd. Annual Report 2023
business will integrate traditional technologies such as picture quality and sound quality with
cutting-edge technologies including Mini/Micro LED displays 5G 8K resolution artificial
intelligence AI large models and cloud computing to gain a competitive edge in the differentiated
market. The white goods business aims to extensively apply cutting-edge technologies such as the
Internet of Things (IoT) and sensors to products which will meet users' needs for health comfort
and eco-friendliness. The semiconductor optoelectronics business will strengthen breakthroughs in
chip miniaturization and mass transfer technologies to capitalize on the product revolution driven
by technological industrialization. The PCB business plans to combine the existing high multilayer
through-hole technology with advanced technologies such as HDI thick copper and rigid-flex
boards to enter fields such as new energy automotive electronics and communication servers
aiming to establish a presence in high-end products.(II) Adhere to the lean concept and fully practice new management strategies
First improve indicators for core capabilities. The Company will focus on core efficiency indicators
to drive value creation and take robust and effective measures to steadily improve operational
performance.Second continue to implement cost-cutting and cost-control measures. In terms of expenses the
Company will strengthen budget control throughout the process and enhance management for key
expense items while optimizing expense structure and reducing administrative expenses. In terms
of cost reduction the Company will increase the proportion of centralized procurement and
implement comprehensive cost reduction measures such as reducing procurement prices improving
procurement turnover management and integrating procurement with products to reduce costs.Third strengthen corporate governance. On the one hand the Company will reduce the operating
risks of legal entities and promote the inflow of funds through measures such as reducing losses
controlling deficits and reducing the number of legal entities. On the other hand the Company will
strengthen the operating responsibility awareness of legal entities establish a two-pronged control
mechanism with equal emphasis on management lines and legal entity lines and accelerate the
improvement of the core business's profitability.(III) Insist on bottom-line thinking and consolidate the ballast against risk in all aspects
First promote assets revitalization. The Company will implement elevated management for key
assets revitalization projects in 2024 forming a work pattern where the headquarters oversees the
overall revitalization plan business units implement specific measures and key projects warrant
elevated focus for breakthroughs.Second optimize interest-bearing liabilities. The Company will actively adjust and optimize the
structure of interest-bearing liabilities seek medium- to long-term financing opportunities improve
the ratio of long-term to short-term debt and reduce financing costs.(IV) Adhere to the path of specialization and promote high-quality management on all fronts
33Konka Group Co. Ltd. Annual Report 2023
"The drivers of products manufacturing and internationalization" serve as the main engine for the
"two-wheel" core business development constituting the primary driving force for the Company's
core business development. The Company will adhere to long-term value-oriented principles forge
a specialized business matrix enhance the professional capabilities in "products manufacturing
and internationalization" and propel high-quality development of the principal business. The
specific tasks are as follows:
1. Colour TVs
In 2024 the key tasks of the colour TV business are to prioritize cash flow and profit ensuring
maximization of total gross profit operational cash flow and per capita output efficiency. In terms
of domestic sales first it is necessary to reshape the capability for value management to improve
gross margin. Second it involves focusing on creating high-quality products. Under the market
trends such as high refresh rates (120Hz and above) and Mini LED technology the strategy is to
manufacture large-screen (65 inch and above) panels and create premium products that can rival the
best in the industry. Third sales channels need to be transformed to promote integrated
development while vigorously developing emerging channels such as OTO (Online To Offline) and
interest-based e-commerce and promoting the synergistic integration and resource reuse of white
and black goods categories. In terms of export sales with profitability as the primary objective the
focus is on expanding manufacturing for international markets and promoting brand abroad. Under
the premise of maximizing gross profit efforts are directed towards maximizing scale. Regarding
manufacturing there is a further emphasis on expanding the customer base for strategic business
clients and increasing the scale of OEM production.
2. White goods
In 2024 the key tasks of the white goods business are as follows: First the Company will aim for
efficiency through scale while seeking gains from product differentiation; second the Company will
increase sales of new dishwasher categories timely establish new production bases for product lines
with insufficient capacity such as air conditioners and washing machines and realize production
with Frestec refrigeration technologies; third the Company will maintain growth momentum in
export and OEM business focus on advantageous markets explore opportunities in untapped
markets with a focus on Europe Asia-Pacific and Africa; fourth the Company will effectively
coordinate the matrix arrangement of dual brands and sub-brands promote the high-end upgrade of
brands and products and maximize gross margin output through brand and upscale products.
3. Semiconductor technology
In 2024 the key tasks of the semiconductor technology business are twofold: First the Company
will achieve industrial scale expansion improve production efficiency and continuously promote
BOM (Bill of Materials) optimization process optimization and yield improvement; second the
Company will solidly advance cost reduction and expense control continuously reduce expenses
34Konka Group Co. Ltd. Annual Report 2023
strengthen expense budget management implement comprehensive budgeting and enforce
"centralized management of costs and expenses" strictly control non-strategic expenses.
4. PCB
In 2024 the key tasks of the PCB business are threefold: First the Company will utilize high-end
smart plants and capabilities in high-layer technology HDI technology and rigid-flex boards
control the pace of product launch develop strategic customers and gradually form a scale
advantage; second the Company will adjust the customer structure and continuously promote
customer base upgrading; third the Company will create high-quality products through R&D
improve the R&D system based on new products new materials and new technologies and
effectively manage the transformation and utilization of technological achievements to continuously
enhance product competitiveness.
5. Mobile Internet
In 2024 the key tasks of the mobile internet business are twofold: First the Company will
scientifically plan organizational structure and personnel allocation enhance organizational
efficiency and optimize cost expenses; second the Company will improve the gross profit of
overseas mobile phone business and OEM business and focus resources on overseas markets to
create core products.
6. Industrial parks
In 2024 the key tasks of the industrial park business are to focus on assets revitalization and the
operation of existing properties provide space carriers cash flow and profit support for industrial
layout and enable the development of the core business; at the same time to fully revitalize park
assets integrate high-quality operating assets of the industrial park business and unlock the value
of existing park assets.
7. Investment
In 2024 the key tasks of industrial investment operations are to strengthen post-investment
management and enhance value preservation and appreciation and orderly withdrawal of invested
projects to achieve capital inflow.In 2024 the key tasks of venture capital operations are as follows: On one hand the Company will
continue exploring the operating model of commercial real estate operators seek additional value
for properties and achieve breakthroughs in operational business; on the other hand it will continue
cost reduction and expense control efforts optimize staffing and control expenditure.XII Communications with the Investment Community such as Researches Inquiries and
Interviews
√ Applicable □ Not applicable
Way Type
of of Main discussions and
Index to main
Date Place com commu Communication party materials provided
information
communicate
muni nicatio by the Company d
35Konka Group Co. Ltd. Annual Report 2023
catio n party
n
Conferenc
e Room
Record Form for
of Office Huaxi Securities: Chen Yulu Li Lin
6 January Instituti Investor Relations
2023 Building Other Dacheng Fund: Gao Yi Houon Activities (No.:
of Konka Yuelong Ma Yueyang and Shu Sijia
2023-01)
R&D
Building
Earni
Conferenc
ngs
e Room Investors participating in the 2022
com
of Office Annual Results Presentation of
Record Form for
11 April 2023 muni IndividBuilding Konka Group Co. Ltd. via the
Investor Relations
catio ual Shenzhen Stock Exchange Activities (No.:
of Konka
n Interaction Easy website 2023-02)
R&D
confe (http://irm.cninfo.com.cn)
Building
rence
Conferenc
e Room
Huaxi Securities: Chen Yulu La Record Form for
of Office
14 April 2023 Instituti Ruimeng Investor RelationsBuilding Other
on China Life Asset Management: Li Activities (No.:
of Konka
Shanshan 2023-03)
R&D
Building
Conferenc
e Room One-
China Merchants Securities: Peng Record Form for
of Office on-
15 May 2023 Instituti Zihao Investor RelationsBuilding one
on Century Securities: Zheng Binbin Activities (No.:
of Konka meeti
Luo Peng 2023-04)
R&D ng
Building
Conferenc
e Room One- http://www.c
Record Form for
of Office on- ninfo.com.cn/
3 November Instituti Industrial Securities: Yan Investor Relations
2023 Building one new/indexon Changming Activities (No.:
of Konka meeti
2023-05)
R&D ng
Building
Yufu Electronics: Zeng Jie Zhang
Fengwei Gao Kai
China Merchants Capital: Wang
Ruifan Tang Yunsheng
Huaxi Securities: Chen Yulu La
Ruimeng
Cinda Securities: Luo Anyang You
Chongqin
Ziyin
g Konka One-
Shanghai United Assets and Equity Record Form for
Optoelect on-
7 November Instituti Exchange: Guan Yanhong Wang Investor Relations
2023 ronic one on Xiaoli Activities (No.:
Technolo meeti
China Equity: Wang Peng 2023-06)
gy Co. ng
China Merchants Securities: Peng
Ltd.Zihao
Shenwan Hongyuan: Liu Jialing
First Capital: Li Zezi
Central China Securities: Ou
Yangjun
Chuanshi Investment: Ren Zhengbin
China Film Investment: Deng
36Konka Group Co. Ltd. Annual Report 2023
Zhongwen
TF Securities: Zong Yan
Conferenc
e Room One-
Record Form for
of Office on-
9 November Instituti China Southern Asset Management: Investor Relations
2023 Building one on Jiang Youjie Activities (No.:
of Konka meeti
2023-07)
R&D ng
Building
Conferenc
e Room Investors participating in theKonka
of Office Group Co. Ltd. 2023 Collective
Record Form for
15 November Individ Reception Day of Listed Companies Investor Relations
2023 Building Other ual of Shenzhen Districts via the Activities (No.:
of Konka Quanjing Roadshow website 2023-08)
R&D (http://rs.p5w.net/)
Building
Conferenc
e Room One-
Record Form for
of Office on-
17 November Instituti Investor Relations
2023 Building one Topsperity Securities: Jin Wenxion Activities (No.:
of Konka meeti
2023-09)
R&D ng
Building
Conferenc
e Room One-
Record Form for
of Office on-
6 December Instituti CITIC Securities: Wang Weida Investor Relations
2023 Building one on Pang Lili Tan Libo Activities (No.:
of Konka meeti
2023-10)
R&D ng
Building
Conferenc
e Room One-
Record Form for
of Office on-
21 December Instituti Investor Relations
2023 Building one Cinda Securities: Luo Angyangon Activities (No.:
of Konka meeti
2023-11)
R&D ng
Building
Conferenc
e Room One-
HengBang ZhaoFeng Private Record Form for
of Office on-
29 December Instituti Securities Fund Management (Shen Investor Relations
2023 Building one on Zhen): Wang Wenbo Duan Activities (No.:
of Konka meeti
Yingsheng Hao Lei Wang Guanhua 2023-12)
R&D ng
Building
XIII Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the company disclosed an action plan for "dual improvement of quality and return".□ Yes √ No
37Konka Group Co. Ltd. Annual Report 2023
Part IV Corporate Governance
I General Information of Corporate Governance
In the Reporting Period strictly in accordance with the Company Law Securities Law of the PRC
Code of Corporate Governance for Listed Companies Share Listing Rules of Shenzhen Stock
Exchange and the relevant rules and regulations of the CSRC the Company timely amended the
internal control systems such as the Articles of Association and Administrative Method on
Provision of External Financial Aids as well as Management System on Investors Relationship
continuously perfected the corporate governance structure and standardized the Company’s
operation. By the end of the Reporting Period the actual conditions of corporate governance
basically met the requirements of the regulatory documents in respect of corporate governance
structure of listed companies issued by CSRC.(I) Shareholders and the Shareholders’ General Meeting
The Company drew up Articles of Association and Rules for Procedure of Shareholders’ General
Meeting ensured that all shareholders in particular medium and minor shareholders enjoy legal
rights and equal standard. In the Reporting Period the Company was able to publish
announcement on Shareholders’ General Meetings in advance convened Shareholders’ General
Meeting with strictly accordance to relevant requirements so as to enable the shareholders have
their rights of information to the Company’s material issues and the participation rights. In 2023
the Company convened four Shareholders’ General Meeting in total. The Company seriously did
well the registration arrangement and organization work for the Shareholders’ General Meeting
before the circular on convening the Shareholders’ General Meeting being published at the
designated media. The Company convened the Shareholders’ General Meeting at the office
address of the Company strictly in line with relevant stipulations which was convenient in traffic
and the shareholders could attend the session in accordance with their actual situation. The
Company’s directors supervisors and senior management staffs made explanations and
description for the shareholders’ questions and advices at the session.(II) Controlling shareholder and the Company
In the Reporting Period the controlling shareholders and actual controllers strictly regulated its
behavior and complied with laws in exercising their rights and obligations not bypassed the
Shareholders’ General Meeting to intervene in the Company’s decisions and operations directly or
indirectly. The Company was separated from the controlling shareholders and actual controllers in
aspects of its business personnel assets organ and finance the Board of Directors Supervisory
Committee and the internal departments of the Company functioned independently.
38Konka Group Co. Ltd. Annual Report 2023
(III) Directors and the Board of Directors
The number and structure of the Board Bureau of the Company were in compliance with laws and
regulations. The Company drew up Rules for Procedures of the Board Bureau so as to ensure a
high efficient operation and scientific decision-making of the Board Bureau; the Company has set
up Independent Director System and engaged three independent directors. In the Reporting Period
the number of directors and composition of the Board of Directors of the Company as well as the
procedure of selection was in accordance with the requirements of the rules and laws as well as
Articles of Association. The Company set up four special committees which were Financial Audit
Committee Nomination Committee Remuneration & Appraisal Committee Strategy Committee
to provide profession opinion for the decision of the Board of Directors. All the directors carried
out their work fulfilled their duties and scrupulously attended the Board sessions in accordance
with Rules of Procedure for the Board of Directors Rules for Independent Directors etc. 15
Board sessions were convened by the Company during the Reporting Period which brought the
decision-making mechanism of the Board of Directors into full play.(IV) Supervisors and supervisory committee
The Company has established Rules for Procedures of the Supervisory Committee persons and
structure of the Supervisory Committee was in line with relevant laws and statutes supervisors
can earnestly perform their responsibilities independently and efficiently executed supervision
and check responsibilities with a spirit of being responsible to shareholders. In the Reporting
Period the number of supervisors and composition of the Supervisory Committee of the
Company as well as their selecting procedure complied with the laws regulations. In accordance
with the requirement of the Rules of Procedure for Supervisory Committee the supervisors
performed their duties in an earnest and responsible manner and exercised their functions of
supervision on the decision-making procedure of the Board of Directors resolutions and the
Company’s operation by law and took effective supervision over the Company’s significant
events related transactions financial position as well as the legality and compliance on duty
performance by the directors president and other senior management members.(V) Performance Appraisal and Incentive & Restrictive Mechanism
The senior management staffs of the Company were recruited on an open basis and in compliance
with the laws and regulations. The Company has established and gradually improved the
performance appraisal standards and incentive & restrictive mechanism for senior management
staffs so as to attract qualified personnel and ensure the stability of senior management staffs.(VI) Interested parties
39Konka Group Co. Ltd. Annual Report 2023
During the Reporting Period the Company fully respected and maintained the legal rights of the
interested parties and realized the balance of interest among the parties such as society
shareholders and employees etc. Meanwhile the Company protected the rights of the employees
promoted the environmental protection and actively joined in the social benefit and charitable
cause so as to jointly promote sustainable and healthy development.(VII) Information disclosure and transparency
The Company formulated the Management System for Investor Relations and the Management
System for Information Disclosure and the Rules on Implementation for Information Disclosure
Committee. And the Company designated specially-assigned person to take charge of the
information disclosure and designated specialized department to be responsible for the reception
of shareholders and consultation actively carrying out the work for investor relations
management to ensure equal access to information for all shareholders. The Company strictly
complied with the requirements of the laws regulations and the Articles of Association to disclose
its information as required by the relevant regulations on an timely honest complete and accurate
basis to ensure the accurate and timely information disclosure while ensure equal access to
information for all shareholders.(VIII) Non-standard governance
1. Type of non-standard governance matter existed
There was a situation that the Company disclosed undisclosed information.
2. Types and cycle of undisclosed information provided to the principal shareholder
The Company provided monthly financial data to the principal shareholder.
3. Reasons for the related non-standard governance existed
The Company submitted the undisclosed information such as monthly financial data to the
substantial shareholder directly administrated by the State-owned Assets Supervision and
Administration Commission of State Council in accordance with the managerial demand of
SASAC.
4. Impact on Company independenceAfter the self-inspection the Company kept strictly to the requirements of “Notice onStrengthening the Supervision of Listed Company’s Provision of Non-public Information toSubstantial Shareholders and Actual Controllers” and “Supplementary Notice ConcerningStrengthening the Supervision of the Non-standard Governance Behavior of Listed Company'sProvision of Non-public Information to Substantial Shareholders and Actual Controllers” while
40Konka Group Co. Ltd. Annual Report 2023
stringently performed the necessary procedures. There existed no circumstances of substantial
shareholder’s abuse of control and disclosure of undisclosed information for insider trading and
hence it has no impact on the independence of the Company.(IX) Development of company’s special governance activity formulation and
implementation of registration and management system for the insider of inside information
1. Establishment and perfection of management system for the insider of inside information
To further standardize the company’s inside information management behavior strengthen the
company’s inside information confidential work and maintain the fair principle of information
disclosure the Company established Inside Information and Insider Management System in
Konka Group Co. Ltd. The Company strictly implements the system in the information
disclosure work meanwhile carefully implements the Company’s inside information and insider
registration and management method registers the insider of inside information and report to
Shenzhen Stock Exchange and Shenzhen Security Regulatory Bureau according to the provision.The Company conducted the special inspection on the inside information management during the
occurrence of major event in 2023 and the annual report in 2023. After the inspection the Company
actually realized that the insider of inside information strictly kept the confidential provision did
not disclose divulge and spread the Company’s inside information to the outside the insider of
inside information did not buy and sell the Company’s share with the inside information before
disclosing the major sensitive information influencing the Company’s share price there was no
investigation and rectification from the regulatory department during the editing review and
disclosure of regular report and major event. Management Rules for Inside Information and Insider
Management System of Konka Group Co. Ltd. was implemented in place and controlled effectively.
2. Establishment and implementation of external information user’s management system
To strengthen the management on the reporting of Company’s inside information the Company establishes
insider information reporting mechanism and regulates the inside information reporting range reporting
procedure responsibility division and other matters according to Security Law in People’s Republic of China
Information Disclosure Management Method in Listed Company Inside Information and Insider Management
System in Konka Group Co. Ltd. and other related provisions in the laws regulations and regulatory
documents.The Company conducted the special inspection on the inside information reporting status during the occurrence
of major event in 2023 and the annual report in 2023. After the inspection the Company’s inside information
reporting status complies with the requirements in Management Rules for Inside Information and Insider
Management System of Konka Group Co. Ltd. Management Rules for Inside Information and Insider
Management System of Konka Group Co. Ltd. was implemented in place and controlled effectively.
41Konka Group Co. Ltd. Annual Report 2023
Indicate by tick market whether there is any material incompliance with laws regulations and
provisions issued by the CSRC governing the governance of listed companies.□ Yes √ No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business Personnel Asset Organization and Financial Affairs
During the Reporting Period the company was fully separated from the controlling shareholders in
terms of business staff assets organs and finance which owned independent legal representative
and main status in market competition and had independent accounting as well as possessed
complete business and the ability of independent operation to face the market.(I) Business: the Company owned complete supply R&D production and sales system possessed
ability of independent operation to face the market by independent operation independent
accounting & decision-making independent bearing responsibility & risks didn’t subject to the
interference and control of the controlling shareholders actual controller and its controlled
enterprises.(II) Staff: the Company was independent of the controlling shareholder with respect to labor
personnel and salaries management. The Company owned independent team of staffs the senior
management staff financial personnel and business personnel received their remunerations in the
Company and they were full-time staffs of the Company without holding any post except directors
and supervisors in shareholders’ units or other related enterprises.(III) Assets integrity: the Company had production and operation premises completely separated
from the controlling shareholder and the unaffiliated and integral assets structure as well as the
independent production system ancillary production system the ancillary facilities house property
right and other assets which also possessed independent procurement and sales system.(IV) Organ: the Company had its own functional organs adapting to the needs of self-development
and market competitiveness all the functional organs were separated from each other in aspects of
personnel office premises and management rules etc. there existed no particulars about any
shareholders other units or individuals interfering the organ setting of the Company.(V) Finance: the Company established an independent finance department with full-time financial
personnel and an independent finance and accounting system and independently carried out the
financial work in line with requirements of relevant accounting rules; the Company promulgated
sound financial management system to operate independently without sharing common accounts
42Konka Group Co. Ltd. Annual Report 2023
with the controlling shareholder related enterprise other units or individual; the Company
independently declared and paid the tax by laws without particulars on paying taxes together with
shareholders’ units.III Horizontal Competition
□ Applicable √ Not applicable
IVAnnual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type participation Date of the
ratio meeting
Disclosure date Meeting resolutions
st
The 1st Extraordinary Extraordinar Resolutions of the 1
General Meeting of 2023 y General 24.4741％ 13 March 2023 14 March 2023 Extraordinary GeneralMeeting Meeting of 2023
The 2022 Annual General Annual
Meeting General 24.3675％ 19 June 2023 20June 2023
Resolutions of the 2022
Meeting Annual General Meeting
The 2nd Extraordinary Extraordinar Resolutions of the 2
nd
General Meeting of 2023 y General 24.2222％ 28 August 2023 29 August 2023 Extraordinary GeneralMeeting Meeting of 2023
rd
The 3rd Extraordinary Extraordinar Resolutions of the 3
General Meeting of 2023 y General 24.1082
21 December 22 December
％
Meeting 2023 2023
Extraordinary General
Meeting of 2023
2. Special General Meetings Convened at the Request of Preferred Shareholders with
Resumed Voting Rights
□ Applicable √ Not applicable
V Directors Supervisors Senior Management and Staff
1. Basic Information
Increas Decrea Other
Incu Begin se in incre
Office mbe Start of End of ning
e in the the ase/d Ending
Name Gender Age Reporti shareho
Reason
title nt/Fo tenure tenure shareh Reporti ecrea for
rmer olding
ng lding
(share) Period
ng se (share) change
(share) Period (shar(share) e)
Directo Incu
Liu 25 July 25 July
Male 53 r mbe 0 0 0 0 0
Fengxi Chairm 2022 2025nt
an of
43Konka Group Co. Ltd. Annual Report 2023
the
Board
Incu
Directo 25 July 25 July
Yao Wei Male 49 mbe 0 0 0 0 0
r 2022 2025
nt
Incu
Zhou Directo 25 July 25 July
Male 45 mbe 0 0 0 0 0
Bin r 2022 2025
nt
Emplo
Incu
Ye yee 25 July 25 July
Male 54 mbe 0 0 0 0 0
Xingbin directo 2022 2025
nt
r
Indepe
Incu
ndent 25 July 25 July
Liu Jian Male 58 mbe 0 0 0 0 0
directo 2022 2025
nt
r
Indepe
Wang Incu
ndent 25 July 25 July
Shuguan Male 53 mbe 0 0 0 0 0
directo 2022 2025
g nt
r
Indepe
Deng Incu
ndent 25 July 25 July
Chunhu Female 61 mbe 0 0 0 0 0
directo 2022 2025
a nt
r
Superv
isor
chairm
an of Incu
Cai 25 July 25 July
Male 51 the mbe 0 0 0 0 0
Weibin 2022 2025
Superv nt
isory
Commi
ttee
Incu
Yang Superv 25 July 25 July
Male 55 mbe 0 0 0 0 0
Guobin isor 2022 2025
nt
Emplo
Incu
yee 25 July 25 July
Li Jun Male 53 mbe 0 0 0 0 0
supervi 2022 2025
nt
sor
Incu
Zhou Preside 18 May 18 May
Male 45 mbe 0 0 0 0 0
Bin nt 2023 2026
nt
Cao Executi
Incu
18 May 18 May
Male 46 ve vice mbe 0 0 0 0 0Shiping 2023 2026
preside nt
44Konka Group Co. Ltd. Annual Report 2023
nt
Vice Incu
Li 18 May 18 May
Male 56 preside mbe 0 0 0 0 0
Hongtao 2023 2026
nt nt
Board Incu
Wu 18 May 18 May
Male 49 Secreta mbe 0 0 0 0 0
Yongjun 2023 2026
ry nt
Incu
Li 18 May 18 May
Male 51 CFO mbe 0 0 0 0 0
Chunlei 2023 2026
nt
Vice Incu
18 May 18 May
Yang Bo Male 54 preside mbe 0 0 0 0 0
20232026
nt nt
Vice Incu
Lin 18 May 18 May
Male 53 preside mbe 0 0 0 0 0
Hongfan 2023 2026
nt nt
Total 0 0 0 0 0
Indicate by tick mark whether any directors or supervisors left or any senior management were
disengaged during the Reporting Period
□ Yes √ No
Change of Directors Supervisors and Senior Management
□ Applicable √ Not applicable
2. Biographical Information
1. Non-independent Director
Liu Fengxi male ethnic group of Han born in 1971 was the Chairman of the Board with a master
degree. He once worked as the Chief of the Operation Management Center of Konka Group
Assistant to President Vice President President & Secretary of the Party Committee Chairman of
the Board & Secretary of the Party Committee of Konka Group Vice GM and the member of the
Standing Committee of OCT Group. And now he is acting as the Deputy Secretary of the Party
Committee Director GM of OCT Group Deputy Chairman of the Board and
Deputy Secretary of CPC of Shenzhen Overseas Chinese Town Co. Ltd. Vice President of
China Tourism Association (concurrently) and the Board Chairman of Konka Group.Yao Wei Director male ethnic group of Han bachelor degree was born in 1975. He once served
45Konka Group Co. Ltd. Annual Report 2023
as Chief Accountant in CGN Wind Power Co. Ltd. Chief Accountant in CGN New Energy
Holdings Co. Ltd. Vice GM (in charge) of Financial Department GM of Financial Department
GM of Finance and Asset Management Department in China General Nuclear Power Corporation.Currently he acts as the director of China Everbright Bank Co. Ltd. the member of the Standing
Committee and Chief Accountant in Overseas Chinese Town Holdings Company and Director of
Konka Group.Zhou Bin male ethnic group of Han born in 1979 was the Secretary of the Party Committee
CEO director and president of the Company with a bachelor degree. He once served as the
director assistant deputy director and director in Operating Management Center in Konka Group
assistant of the president in the Board of Directors & Director in Operating Management Center
in Konka Group and President of Konka Group. Now he acts as the Chairman of Shenzhen
Konka Investment Holdings Co. Ltd. and Shenzhen Konka Capital Equity Investment
Management Co. Ltd. and Director Secretary of the Party Committee and President & CEO in
Konka Group.Ye Xingbin male Han Chinese born in 1970 was the Employee Director of the Company and
holds a bachelor's degree. He previously served as a Special Director at the Overseas Chinese Town
Holdings Company (OCT Group) and was a member of the Standing Committee of the
Qiandongnan Prefecture of Guizhou Province the Deputy Governor of the Prefecture Government
the Director of Shenzhen Huakang Chuangzhan Technology Holding Group Co. Ltd. and the
Deputy Party Secretary of the Party Committee and Director of Konka Group. He is currently
serves as the Vice Chairman of the Federation of Trade Unions Committee of Overseas Chinese
Town Holdings Company Deputy Party Secretary of the Party Committee Chairman of the Labor
Union and Employee Director of Konka Group.
2. Independent Director
Mr. Liu Jian Independent Director is a Han Chinese man born in 1966 and holds a master's degree.His notable professional experiences include having served as an editor at the Foreign Economic
and Trade University Press and the China Business Times and also as an independent director at
Wuhan Tianyuan Environmental Protection Co. Ltd. Hisense Visual Technology Co. Ltd. and
Founder Technology Group Corporation. In his current capacity Mr. Liu Jian holds various
positions in different organizations. He serves as the chief editor and president of the Economic
Observer Newspaper presides over the Beijing Jingguan Cultural Media Co. Ltd. as its chairman
and functions as a director and general manager of Shandong Economic Observer Newspaper
46Konka Group Co. Ltd. Annual Report 2023
Media Co. Ltd. Additionally he takes on the role of an independent director of Konka Group.Wang Shuguang Independent Director male ethnic group of Han was born in 1971 with a
doctoral degree. He served as Independent Director of Yantai Rural Commercial Bank Jinan Rural
Commercial Bank Ningbo Yuyao Rural Commercial Bank and SDIC Zhonglu and External
Supervisor and Convener of the Board of Supervisors of Industrial Bank Co. Ltd. Currently he
serves as Professor and Doctoral Supervisor in the School of Economics of Peking University
Executive Deputy Director of the Institute for Cultural Industries Peking University and
Independent Director of Konka Group.Deng Chunhua Independent Director female ethnic group of Han born in 1963 with a degree of
MBA accounting professor and a Certified Public Accountant in China (non-practicing member).She served as Chief Accountant and Project Manager of WUYIGE Certified Public Accounts LLP.She has been teaching in the School of Accounting of Zhongnan University of Economics and Law
as Assistant Lecturer Lecturer Associate Professor and Professor. And she onced acted as the
Independent Director of Zhejiang Goldensea Hi Tech Co. Ltd. Currently she serves as a Professor
in the School of Accounting of Zhongnan University of Economics and Law the Independent
Director of Zhejiang Jinke Tom Culture Industry Co. Ltd. Wolong Electric Group Co. Ltd.Zhejiang Youchuang Material Technology Co. Ltd. (non-listed company) and Konka Group.
3. Supervisor
Cai Weibin Chairman of the Supervisory Committee male ethnic group of Han Master’s Degree
was born in 1973. He once served as vice GM deputy secretary of the Party Committee and
Secretary of Committee for Discipline Inspection in Chongqing OCT Industry Development Co.Ltd. Vice Minister of Discipline Inspection and Supervision and Director of the Discipline
Inspection Office in Overseas Chinese Town Holdings Company Currently he acts as GM of Legal
Compliance Department in Overseas Chinese Town Holdings Company and Chairman of the
Supervisory Committee of Konka Group.Yang Guobin Supervisor male was born in 1969 Bachelor’s Degree Certified Public Accountant.He served as Deputy Director of the Finance Department of OCT Group CFO of Konka Group and
Deputy Director of the Corporate Management Department of OCT Group. Currently he serves as
47Konka Group Co. Ltd. Annual Report 2023
a full-time Director in OCT Group and Supervisor of Konka Group.Li Jun male ethnic group of Han born in 1971 was an employee supervisor of the Company with
a bachelor degree. Formerly worked as the Senior Manager of the Financial Department in
Shenzhen Telecommunications Technology Co. Ltd. the Senior Manager and assistant to the chief
and deputy director of Auditing and Legal Affairs Department in Konka Group Office Director of
discipline inspection commission of Konka Group and employee supervisor of Konka Group.Presently working as the deputy secretary of discipline inspection commission of Konka Group
General Counsel Chief of the Supervision Audit and Legal Affairs Center and Employee
Supervisor of Konka Group.
4. Senior Executive
Zhou Bin male ethnic group of Han born in 1979 was the Secretary of the Party Committee CEO
director and president of the Company with a bachelor degree. He once served as the director
assistant deputy director and director in Operating Management Center in Konka Group assistant
of the president in the Board of Directors & Director in Operating Management Center in Konka
Group and President of Konka Group. Now he acts as the Chairman of Shenzhen Konka
Investment Holdings Co. Ltd. and Shenzhen Konka Capital Equity Investment Management Co.Ltd. and Director Secretary of the Party Committee and President & CEO in Konka Group.Cao Shiping male Han nationality born in 1978 was the executive vice president of the Company
with a master degree. Once served as the GM in Jinzhou Branch and Tianjin Branch of Konka
Group Multi-media GM in Multi-media Business Division Customer Cooperation Department
vice GM in Multi-media Marketing Business Division vice GM in Multi-media Business Division
and GM in Marketing Center GM in Multi-media Business Division GM in Internet Business
Division and vice president of Konka Group. Now he acts as the executive vice president in Konka
Group.Li Hongtao male Han nationality born in 1968 was the vice president of the Company with a
bachelor degree. He successively took the post such as Assistant to GM GM Chairman of the
Board and GM of Shenzhen Konka Telecommunication Technology Co. Ltd and Assistant to
President and vice president of Konka Group etc. He now is acting as Vice President of Konka
48Konka Group Co. Ltd. Annual Report 2023
Group.Wu Yongjun male Han nationality born in 1975 was the Board Secretary with a master degree.Formerly he worked as the senior manager of Secretariat assistant to the chief vice chief chief
Securities Affairs representative and Board Secretary in Konka Group. Presently he is working as
the secretary of the board of directors of Konka Group.Li Chunlei male Han nationality born in 1973 was the CFO of the Company with a master degree.Once served as the director in Real Estate Business Division in Konka Group vice GM and GM in
Kunshan Kangsheng Investment Development Co. Ltd. deputy director (preside the work) and
director in Strategic Development Center GM in Financial Center and GM in Asset Settlement
Center and CFO of Konka Group. Now he acts as the CFO in Konka Group.Yang Bo male Han nationality born in 1970 was the vice president of the Company with a master
degree. Once served as the director in Shenzhen Cable Television Education Financial Channel
director in the market sales and support region of US Tailiyang Communications Company GM in
Program Operating Department in Shenzhen Topway Video Communication Co. Ltd. director and
GM in Shenzhen Tianhua Century Media Co. Ltd. GM in Market Sales Center in Shenzhen
Topway Video Communication Co. Ltd. and vice president of Konka Group. Now he acts as the
vice president in Konka Group.Lin Hongfan male Han nationality born in 1971 was the vice president of the Company with a
MBA degree. Once served as the vice GM in Multi-media Marketing Business Divisionof Konka
Group GM of Color TV Strategy and Supply Chain Management Center executive vice GM and
GM in Multi-media Business Division of Konka Group vice president and president assistant of
Konka Group. Now he acts as the vice president in Konka Group.Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Office held in the End of Remuneration or
Name Shareholding entity Start of tenure
shareholding entity tenure allowance from
the shareholding
49Konka Group Co. Ltd. Annual Report 2023
entity
Liu OCT Group Director Deputy SecretaryFengxi of CPC GM 21 May 2021 Yes
Liu Shenzhen Overseas Chinese Deputy Chairman of the
Fengxi Town Co. Ltd. Board Deputy Secretary of 22 June 2021 NoCPC
Party Committee Standing
Yao Wei OCT Group Committee and Chief 1 July 2020 Yes
Accountant
Cai
Weibin OCT Group
GM of Legal Compliance
Department 1 December 2020 Yes
Yang OCT Group Full-time director in BoardGuobin Office 7 March 2018 Yes
1. Except the above situation other directors supervisors and senior management didn’t hold any position in the
shareholders’ units.Notes
2. It is unknown the ending date of the posts of Mr. Liu Fengxi Mr. Yao Wei Mr. Cai Weibin and Mr. Yang
Guobin held in the shareholders’ units.Offices held concurrently in other entities:
√Applicable □Not applicable
Remuneration or
Office held in End of
Name Other entity Start of tenure allowance from
the entity tenure
the entity
Liu Fengxi China Tourism Association Vice president 20 December 2022
Yao Wei China Everbright Bank Co. Ltd. Director 5 February 2021
Liu Jian The Economic Observer Chief editor andpresident 16 April 2001 Yes
Liu Jian Shandong Economic ObserverMedia Co. Ltd. Director GM 28 September 2022
Liu Jian Beijing Economic Observer Chairman of theCulture Media Co. Ltd. Board 25 May 2018
Wang School of Economics of Peking
Shuguang University Professor Yes
Wang Institute for Cultural Industries of
Shuguang Peking University Deputy director
Deng Chunhua Zhongnan University ofEconomics and Law Professor Yes
50Konka Group Co. Ltd. Annual Report 2023
Deng Chunhua Zhejiang Jinke Culture Industry IndependentCo. Ltd. director 8 July 2020 Yes
Deng Chunhua Wolong Electric Group Co. Ltd. Independentdirector 7 September 2020 Yes
Zhejiang Youchuang Material
Deng Chunhua Technology Co.Ltd. (non-listed Independentdirector 27 October 2020 Yescompany)
Notes None
Punishments imposed in the recent three years by the securities regulator on the incumbent
directors supervisors and senior management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors
supervisors and senior management:
The salary of directors and supervisors of the Company should be submitted to the shareholders
meeting for review after the approval and consent by the Board of directors. Referred to the salary
level of the Directors and Supervisor of the domestic listed companies of same industry the salary
proposal of the Director and Supervisors of the Company which approved and reviewed by the 2nd
Extraordinary General Meeting of 2015 were as follows: (1) the basic annual salary standard of the
Board Chairman was of RMB1.2 million the subsidy standard of other Directors (excluding the
Directors serving in the Company) was of RMB0.3 million per person per year and the subsidy
standard of the Supervisors (excluding the Employee Supervisors) was of RMB0.2 million per
person per year; which was executed since June 2015. (2) the above standards were all pre-tax
standard with the individual income tax burdened in person as well as the Company withheld and
remitted tax.Other treatment for independent directors: travel expense when they went to attend the Board
sessions Supervisory sessions or Shareholders’ General Meetings and the expenses when they were
performing their duties as stipulated in the relevant regulations and the Articles of Association and
other relevant systems all these could be reported for deletion. The Board of Directors determined
the remuneration of senior management staffs referring to the following factors: a. scope of jobs and
responsibility shouldered; b. actual profit of the Company; c. market remuneration level in the same
industry and same area.The salary of senior management of the Company should be submitted to the Board of Directors for
review after the review by the Remuneration and Appraisal Committee under the Board.
51Konka Group Co. Ltd. Annual Report 2023
The remuneration for the year 2023 disclosed by directors supervisors and senior management has
been reviewed by the Remuneration and Appraisal Committee under the Board.Remuneration of the directors supervisors and senior management of the Company during the
Reporting Period
Unit: RMB'0000
Total before-
Incumb tax
Gen Any remuneration from
Name Age Office title ent/For remuneration
der related party
mer from the
Company
Liu Mal Incumb
53 Director Chairman of the Board 0 Yes
Fengxi e ent
Mal Incumb
Yao Wei 49 Director 0 Yes
e ent
Mal Secretary of CPC CEO Director Incumb
Zhou Bin 45 102.06 No
e President ent
Ye Mal Deputy Secretary of CPC Employee Incumb
54 70.66 No
Xingbin e Director ent
Mal Incumb
Liu Jian 58 Independent director 30 No
e ent
Wang Mal Incumb
53 Independent director 30 No
Shuguang e ent
Fe
Deng Incumb
mal 61 Independent director 30 No
Chunhua ent
e
Cai Mal Chairman of the Supervisory Incumb
51 0 Yes
Weibin e Committee ent
Yang Mal Incumb
55 Supervisor 0 Yes
Guobin e ent
Mal Incumb
Li Jun 53 Employee Supervisor 115.30 No
e ent
Cao Mal Incumb
46 Executive vice president 73.76 No
Shiping e ent
Li Mal Incumb
56 Vice president 70.66 No
Hongtao e ent
Wu Mal Incumb
49 Board Secretary 70.66 No
Yongjun e ent
52Konka Group Co. Ltd. Annual Report 2023
Mal Incumb
Li Chunlei 51 CFO 70.66 No
e ent
Mal Incumb
Yang Bo 54 Vice president 70.66 No
e ent
Lin Mal Incumb
53 Vice president 70.66 No
Hongfan e ent
Total -- -- -- -- 805.08 --
Other notes
□Applicable Not applicable
VI Performance of Duty by Independent Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
Meeting Date of themeeting Disclosure date Meeting resolutions
The 6th
Meeting of
the 10th 13 January 2023 17 January 2023 Resolutions of the 6
th Meeting of the 10th Board of
Board of Directors
Directors
Resolutions of the 7th Meeting of the 10th Board of
Directors;
Resolutions on Applying for General Credit Limit from
Shenzhen Branch China Guangfa Bank Co. Ltd.;
Resolutions on Applying for General Credit Limit from
China Construction Bank (CCB);
Resolutions on Applying for General Credit Limit from
Agricultural Bank of China (ABC);
Resolutions on Applying for General Credit Limit from
Shanghai Pudong Development Bank (SPD bank);
The 7th
Meeting of Resolutions on Applying for General Credit Limit from
the 10th 24 February 2023 25 February 2023 Bank of Beijing (BOB);
Board of
Directors Resolutions on Applying for General Credit Limit from
Industrial Bank Co. Ltd.;
Resolutions on Applying for General Credit Limit from
Hengfeng Bank;
Resolutions on Applying for General Credit Limit from
China Resources Bank of Zhuhai Co. Ltd. (CRBC);
Resolutions on Applying for General Credit Limit from
China CITIC Bank;
Resolutions on Applying for General Credit Limit from
Bank of Hangzhou;
Resolutions on Applying for General Credit Limit from
53Konka Group Co. Ltd. Annual Report 2023
Shenzhen Branch Hua Xia Bank Co. Ltd.;
Resolutions on Applying for General Credit Limit from
Shenzhen Rural Commercial Bank (SRCB);
Resolutions on Applying for General Credit Limit from
China Minsheng Bank;
Resolutions on Applying for General Credit Limit from
China Bohai Bank Co. Ltd.Resolutions of the 8th Meeting of the 10th Board of
Directors
Resolutions on Business Plan and Financial Budget
Plan for 2023;
Resolutions on Letter of Commitment on Performance
The 8th for 2023 for the Company’s Management Team;
Meeting of
the 10th 24 March 2023 28 March 2023 Resolutions on 2023 Donation Plan;
Board of Resolutions on A New Fixed Assets Investment Plan for
Directors 2023;
Resolutions on A New Equity Investment Plan for
2023;
Resolutions on Revising the Remuneration
Management Measures for Heads of Konka Group Co.Ltd.The 9th
Meeting of th th
the 10th 31 March 2023 4 April 2023 Resolutions of the 9 Meeting of the 10 Board of
Board of Directors
Directors
The 10th
Meeting of th th
the 10th 27 April 2023 Resolutions of the 10 Meeting of the 10 Board of
Board of Directors
Directors
The 11th
Meeting of
the 10th 18 May 2023 19 May 2023 Resolutions of the 11
th Meeting of the 10th Board of
Board of Directors
Directors
The 12th
Meeting of th th
the 10th 26 May 2023 27 May 2023 Resolutions of the 12 Meeting of the 10 Board of
Board of Directors
Directors
The 13th
Meeting of 14 June 2023 Resolutions of the 13
th Meeting of the 10th Board of
the 10th Directors
Board of
54Konka Group Co. Ltd. Annual Report 2023
Directors
The 14th
Meeting of Resolutions of the 14th Meeting of the 10ththe 10th 10 July 2023 11 July 2023 Board of
Board of Directors
Directors
The 15th
Meeting of th th
the 10th 10 August 2023 11 August 2023 Resolutions of the 15 Meeting of the 10 Board of
Board of Directors
Directors
Resolutions of the 16th Meeting of the 10th Board of
Directors;
The 16th Resolutions on Adjusting Remunerations of Senior
Meeting of Management;
the 10th 25 August 2023 Resolutions on Applying for General Credit Limit from
Board of the Hongkong and Shanghai Banking Corporation
Directors Limited (HSBC);
Resolutions on Applying for General Credit Limit from
Shenzhen Rural Commercial Bank (SRCB)
The 17th
Meeting of
the 10th 20 September Resolutions of the 17
th Meeting of the 10th Board of
Board of 2023 Directors
Directors
Resolutions of the 18th Meeting of the 10th Board of
Directors
Resolutions on Revising the Compliance Management
Implementation Rules of Konka Group Co. Ltd.(Revised in 2023);
Resolution on Applying for General Credit Limit from
The 18th Bank of China;
Meeting of
the 10th 30 October 2023 Resolution on Applying for General Credit Limit from
Board of Industrial and Commercial Bank of China (ICBC);
Directors
Resolution on Applying for General Credit Limit from
Bank of Communications;
Resolution on Applying for General Credit Limit from
Bank of Ningbo;
Resolution on Applying for General Credit Limit from
China Zheshang Bank Co. Ltd.The 19th
Meeting of th th
the 10th 4 December 2023 6 December 2023 Resolutions of the 19 Meeting of the 10 Board of
Board of Directors
Directors
55Konka Group Co. Ltd. Annual Report 2023
The 20th
Meeting of th th
the 10th 11 December 2023 Resolutions of the 20 Meeting of the 10 Board of
Board of Directors
Directors
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
The director
Total number Board
Board Board failed to
of board Board meetings
meetings meetings the attend two General
meetings the meetings attended by
Director attended director consecutive meetings
director was attended on way of
through a failed to board attended
eligible to site telecommuni
proxy attend meetings
attend cation
(yes/no)
Liu Fengxi 15 1 14 0 0 No 0
Yao Wei 15 1 14 0 0 No 0
Zhou Bin 15 1 14 0 0 No 4
Ye Xingbin 15 1 14 0 0 No 4
Liu Jian 15 1 14 0 0 No 0
Wang
Shuguang 15 1 14 0 0 No 0
Deng
Chunhua 15 1 14 0 0 No 0
Why any director failed to attend two consecutive board meetings:
Not applicable
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.□ Yes √ No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.√ Yes □ No
56Konka Group Co. Ltd. Annual Report 2023
Suggestions from directors adopted or not adopted by the Company:
During the reporting period the directors of the company actively attended the relevant meetings
carefully reviewed the proposals gave full play to the role of "setting strategy making decisions
and preventing risks" and had an in-depth understanding of the development of semiconductor and
other businesses as well as the company's operating conditions internal control construction and
the implementation of the resolutions of the Board of Directors meeting.Directors of the Company put forward the constructive advices by use of their own professional
knowledge towards the internal management. For example to actively promote the refinement of
the Company’s development strategy plan and implementation thereof to provide advices on
expanding the Company’s business and to pay attention to risks control of the Company such as the
cash flow and accounts receivable management. The Company carefully adopted the advices from
the Directors and constantly improved and enhanced the management level of the Company.VII Performance of Duties by Specialized Committees under the Board during this
Reporting Period
Other
Numb informat Details
er of ion about
Commi Member meeti Conven Important opinions and about issues
ttee s ngs ed date Content suggestions raised the with
conve perform objections
ned ance of (if any)
duty
1. The arrangement of the audit
work on the 2022 Annual Report
of the Company was approved.
2. It was consented that the
annual financial statements shall
The 2022 Financial be provided to the CPA for the
statements and the annual audit.
6 Arrangement of the 2022 3. It is required that ShineWing
January Annual Audit submitted Certified Public AccountantsDeng
2023 by the Company’s (special general partnership)Chunhu financial center (issued by appointed by the Company
Audit a Yao the Company prior to the should carry out the auditing in
Commi Wei 9 entry of the annual CPA) strict accordance with the
ttee Wang requirements of the China
Shuguan Practice Standards for Certified
g Public Accountants and should
promptly communicate with the
Committee if major problems are
discovered.
2022 Annual Internal No objections were raised
20 Audit Report of Konka regarding the following
Februar Group and Konka documents submitted by the
y 2023 Group’s Internal Audit Company: 2022 Annual Internal
Quality Self-assessment Audit Report of Konka Group and
Report submitted by the Konka Group’s Internal Audit
57Konka Group Co. Ltd. Annual Report 2023
Company Quality Self-assessment Report.The CPAs for annual
audit were engaged for No objection was made to the
10 the discussion and review 2022 annual financial statements
March of the Company's of the Company preliminarily
2023 financial statements after audited by ShineWing Certifiedthey have issued Public Accountants (special
preliminary audit general partnership).opinions.Communications were 1. The 2022 annual audit
made with the Internal performed by ShineWing
Audit Department of the Certified Public Accountants
Company; the 2022 (special general partnership) was
annual audit performed satisfying. 2. No objection was
by ShineWing Certified made to the 2022 Audit Report14 Public Accountants issued by ShineWing CertifiedMarch (special general Public Accountants (special2023 partnership) was general partnership). 3. It was
appraised; the 2022 Audit proposed that ShineWing
Report reviewed and Certified Public Accountants
retention of the (special general partnership) be
accounting firm for 2023 retained for further service as the
was deliberated. audit institution of the Company's2023 annual financial statements.
27 April 2023 Q1 financial No objection was made to the
2023 statements of the 2023 Q1 financial statements ofCompany the Company.
2023 Internal Audit Plan
26 May of Konka Group No objection was made to the
2023 submitted by the 2023 Internal Audit Plan of
Company Konka Group submitted by the
Company.Rehiring ShineWing
Certified Public Make a proposal to rehire
1 Accountants (special
ShineWing Certified Public
general partnership) as Accountants (special generalAugust partnership) as the audit firm and
2023 the audit firm and internalcontrol audit firm for the internal control audit firm for the
company’s 2023 financial company’s 2023 financial
statements. statements.
25 2023 interim financial No objection was made to the
August statements of the 2023 interim financial statements
2023 Company of the Company.
30 2023 Q3 financial No objection was made to the
October statements of the 2023 Q3 financial statements of
2023 Company the Company.
Remun Wang 1. Letter of Commitment 1. The Letter of Commitment on
eration Shuguan on Performance for 2023 Performance for 2023 for the
and g Yao 14 for the Company’s Company’s Management Team
Apprais Wei Ye 2 March Management Team was approved and was agreed to
al Xingbin 2023 be submitted to the Board for
Commi 2. Remunerations ofLiu Jian deliberation.ttee directors supervisors andDeng senior management as 2. Remunerations of directors
58Konka Group Co. Ltd. Annual Report 2023
Chunhu disclosed supervisors and senior
a management as disclosed in the
3. Revised Remuneration Company's 2022 Annual Report
Management Measures were true. Remunerations of
for Heads of Konka directors supervisors and senior
Group Co. Ltd. management as disclosed were
consistent with the Company's
salary management policy and no
violation was found.
3. The revised Remuneration
Management Measures for Heads
of Konka Group Co. Ltd. was
agreed to be submitted to the
Board for deliberation.
15 Adjusting Agree to adjust remuneration
August remunerations of standard of senior management
2023 and submit it to the Board of thesenior management Company for deliberation
Approve the reappointment of
Mr. Zhou Bin as the President of
Liu Jian the Company Mr. Cao Shiping
Yao as the Executive Vice President
Wei of the Company Mr. Li Hongtao
Nomin Zhou Yang Bo and Mr. Lin Hongfan as
ation Bin 1 8 May Change of senior Vice President of the CompanyCommi Wang 2023 management Mr. Wu Yongjun as Board
ttee Shuguan Secretary of the Company Mr. Li
g Deng Chunlei as CFO of the Company
Chunhu and endorse the submission of
a this proposal to the Company’s
Board of Directors for
deliberation.VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its
supervision in the Reporting Period.□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent
1621
at the period-end
Number of in-service employees of major subsidiaries at the
12485
period-end
Total number of in-service employees at the period-end 14106
59Konka Group Co. Ltd. Annual Report 2023
Total number of paid employees in the Reporting Period 14106
Number of retirees to whom the Company as the parent or its
0
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 7335
Sales 3405
Technical 1479
Financial 609
Administrative 1278
Total 14106
Educational backgrounds
Educational background Employees
Master and above 365
Bachelor 3171
Junior college 3808
High school and below 6762
Total 14106
2. Employee Remuneration Policy
The Company promulgated its remuneration system with the operating strategy of serving for the
enterprise development and enhancement and the principle of deciding the remuneration according
to the post business performance and capabilities as well as the market competitiveness and
internal fairness. And it decided the employee’s remuneration level according to its business
earnings the posts and fulfillment of the business performance of the employee.
3. Employee Training Plans
The Company adhered to the people-oriented and paid special attention to cultivate the talents.Surrounded by the actual strategic business development the Company actively organized and
60Konka Group Co. Ltd. Annual Report 2023
carried out various training activities and continuously perfected its talents cultivation system as
well as further enhanced the employee’s professional skills and overall quality.In 2023 under the new development strategy of "One Axis Two Wheels and Three Growth
Drivers" the Company upheld the principle of Party leadership in talent management. With the
implementation of lean management as a prerequisite the Company continued to perform tasks
from three aspects: "Driving strategy implementation supporting business transformation and
coordinating talent development".Focusing on the project operation system of "Three Tiers and Seven Brands" Konka open classes
have been organized throughout the year for all employees of the Company; and organized and
carried out the new employee’s training projects respectively for the graduates from campus
recruiting and personnel from social recruitment. Meanwhile the Company continued to strengthen
its professional development efforts and empower business growth by conducting ongoing
professional training for marketing research and development manufacturing and other
departments.
4. Labor Outsourcing
□Applicable √ Not applicable
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy was formulated executed or
revised in the Reporting Period:
√ Applicable □ Not applicable
The cash dividend policy of the Company was clearly stated in its Articles of Association with
specific and clear dividend standards and ratios. The relevant decision-making procedure and
mechanism were sound; the independent directors faithfully performed their duties and played their
due role; and the non-controlling interests were able to fully express their opinion and desire and
their legal rights and interests were fully protected. The Company strictly followed the cash
dividend policy in its Articles of Association and the cash dividend payout of the Company was in
line with its Articles of Association and the relevant resolution of the Shareholders’Meeting.According to the requirements of the Listed Company Supervision Guideline No. 3-Listed
Companies’ Cash Dividend issued by the CSRC the Company has revised the dividend payout
policy in its Articles of Association further clarifying the priority and proportion of cash dividend
in dividend payouts. In order to further normalize its shareholder return mechanism push forward
the establishment of a scientific sustained and stable shareholder return mechanism enhance the
61Konka Group Co. Ltd. Annual Report 2023
transparency and operability of decision-making for its dividend payout policy and effectively
protect the legal rights and interests of public investors.Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and resolution of general meeting Yes
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and played their due role Yes
Specific reasons and the next steps it intends to take to enhance the investor return level if the
N/A
Company did not pay cash dividend:
Non-controlling interests are able to fully express their opinion and desire and their legal
Yes
rights and interests are fully protected
In case of adjusting or changing the cash dividend policy the conditions and procedures
N/A
involved are in compliance with applicable regulations and transparent
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for
shareholders despite the facts that the Company has made profits in the Reporting Period and the
profits of the Company as the parent distributable to shareholders are positive.□ Applicable √ Not applicable
Final Dividend Plan for the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□Applicable √ Not applicable
No such cases in the Reporting Period.XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
The Company has established and improved the Company's internal control system in accordance
with the regulations of the China Securities Regulatory Commission and the Shenzhen Stock
Exchange following the basic principles of internal control and on the basis of the Company's
62Konka Group Co. Ltd. Annual Report 2023
actual situation. The Company's Financial Audit Committee and Supervision Audit and Legal
Affairs Center follow the guidance of value management seek the goal of strengthening risk
management and control continuously enhance audit supervision and internal control evaluation
thereby scrutinizing and evaluating the Company's internal control management. The Company's
2023 Annual Internal Control Self-Assessment Report comprehensively factually and accurately
reflects the actual situation of the Company's internal control. During the Reporting Period the
Company had no major or significant deficiencies in its internal control.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
Integration Countermeasur Settlement Follow-up
Subsidiary Integration plan Problem
progress es taken progress settlement plan
N/A N/A N/A N/A N/A N/A N/A
XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control self-evaluation report 2 April 2024
Index to the disclosed internal control self-evaluation report http://www.cninfo.com.cn/new/index
Evaluated entities’ combined assets as % of consolidated total assets Over 90.00%
Evaluated entities’ combined operating revenue as % of consolidated
Over 90.00%
operating revenue
Identification standards for internal control weaknesses
Weaknesses in internal control not related to
Type Weaknesses in internal control over financial reporting
financial reporting
Those with the following characteristics should be recognized The following signs indicated there may exist
as great defect: (1) found out there were malpractices of the great defect among the internal control of the
Directors Supervisors and Senior Executives of the Company non-financial report: (1) serious violations of
that formed significant influences on the financial report; (2) national laws and regulations in business
Nature the Company revised the published financial report and operations; (2) frequent exposure of negative
standard revised the great misstatements caused by the malpractices or news in the media causing significant damage to
the mistakes; (3) CPA found out there was great misstatement the company's reputation; (3) departure of the
of the current financial report while didn’t found during the core management team in droves or serious
operating process of the internal control; (4) the supervision of turnover of personnel in key positions; and (4)
the internal control by the Finance Audit Committee and the lack of systematic control of important
63Konka Group Co. Ltd. Annual Report 2023
internal audit institution of the Company was invalid; (5) not businesses or systematic failure of the system;
yet revised the great defect after the reasonable period as and (4) great deficiencies identified in internal
which was discovered among the internal control assessment; control evaluations were not rectified in a timely
(6) the significant business lacked of systematic control or the manner.
systematic control was invalid.. Those with the following
characteristics should be recognized as significant defect: (1) The following signs indicated there may exist
not yet chosen or applied the accounting polices according to significant defect among the internal control of
the generally accepted accounting standards; (2) not yet the non-financial report: (1) negative news
constructed the anti-spam process or control measures; (3) as occurred rather frequently which caused rather
for the accounts disposal of the unconventional or special big harm to the Company’s reputation; (2) the
transactions there was no corresponding control mechanism outflow of the key position personnel was rather
or execution or the existence of the corresponding supplement serious; (3) there was obvious defect among the
control; (4) there was one or multiple defects during the control system of the significant business; (4) the
control of the compile of the financial report at the period-end significant defect found among the internal
and could not reasonable guarantee the statement of the control assessment not yet be revised in time.compiled financial report reach the real and accurate target; Other defects from the internal control hadn’t
(5) not yet revised the significant defect after the reasonable reached the recognition standards of the great
period as which was discovered among the internal control defect or significant defect should be recognized
assessment. as general defect.Other defects from the internal control hadn’t reached the
recognition standards of the great defect or significant defect
should be recognized as general defect.Great defect: potential misstatement amount≥1% of the gross
profit margin of the 2023 consolidated financial report of the
Company; significant defect: 0.5% of the gross profit margin
of the 2023 consolidated financial report of the Company Implement in accordance with the quantitative
Quantitativ
≤potential misstatement amount ＜ 1% of the gross profit criteria of internal control defect evaluation in
e standard
margin of the 2023 consolidated financial report of the financial statements
Company; general defect: potential misstatement amount＜
0.5% of the gross profit margin of the 2023 consolidated
financial report of the Company.Number of material weaknesses in internal control over financial reporting 0
Number of material weaknesses in internal control not related to financial
0
reporting
Number of serious weaknesses in internal control over financial reporting 0
Number of serious weaknesses in internal control not related to financial
0
reporting
2. Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We considered that in all the significant aspects Konka Group maintained efficient internal control of the financial report
according to the C-SOX and the relevant regulations on 31 December 2023.Disclosure of such report Disclosed
64Konka Group Co. Ltd. Annual Report 2023
Disclosure date 2 April 2024
Index to such report disclosed http://www.cninfo.com.cn/new/index
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to financial
None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s
report on the Company’s internal control.□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control
is consistent with the internal control self-evaluation report issued by the Company’s Board.√ Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
The Company has completed the self-inspection in accordance with the relevant requirements of the
CSRC and rectified the problems identified in the self-inspection.
65Konka Group Co. Ltd. Annual Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major
polluter by the environmental protection authorities.√ Yes □ No
Policies and industry standards pertaining to environmental protection
The Company abides by environmental protection laws and regulations such as the Environmental
Protection Law of the People’s Republic of China Water Pollution Prevention and Control Law of
the People’s Republic of China Air Pollution Prevention and Control Law of the People’s Republic
of China Noise Pollution Prevention and Control Law of the People’s Republic of China Solid
Waste Pollution Prevention and Control Law of the People’s Republic of China and others. The
water pollutant discharge standards include the Emission Standard of Water Pollutants for
Electroplating DB44/1597-2015 and the Water Pollutant Discharge Limit Standard of Guangdong
Province DB44/26-2001. The air pollutant emission standards include the Emission Standard of
Volatile Organic Compounds for Printing Industry DB44/815-2010 Emission Standard of
Electroplating Pollutants GB21900-2008 Emission Standard of Odorous Pollutants GB14554-93
and Emission Control Standard of Volatile Organic Compounds for Unorganized Emissions
GB37822-2019.Status of Environmental Protection Administrative License
1. XingDa HongYe
XingDa HongYe received approval from the Zhongshan Environmental Protection Bureau to
establish and construct its facility in 2004 (ZH.H.J. [2004] No. 61) followed by subsequent
approvals under ZH.H.J.D. [2008] 06250 and ZH.H.J.D. [2010] 04469 in 2008 and 2010
respectively. After the original project of XingDa HongYe was put into production it underwent
two acceptance stages: the first stage in 2008 (H.Y [2008] 02) and the second stage in 2012
(ZH.H.Y. Report [2012] 000092).Xingda Hongye enlisted the services of the Zhongshan Environmental Protection Science Research
Institute in December 2012 to perform an environmental impact evaluation for their proposed
technological upgrade and expansion initiative. Following this on 31 December 2012 the
Environmental Protection Bureau of Zhongshan City granted No. ZH.H.J.SH. (2012) 115 Approval
on the Environmental Impact Assessment Report for Technological Upgrade and Expansion
66Konka Group Co. Ltd. Annual Report 2023
Program of GuangDong XingDa HongYe Electronic Co. Ltd. The scheme allowed for an increased
production of six-layer circuit boards eight-layer and above circuit boards and HDI boards while
reducing the production of single-sided circuit boards. After the completion of the technological
upgrade and expansion the production capacity was expected to reach a total of 200000 square
meters for single-sided circuit boards per year 250000 square meters for double-sided circuit
boards per year 300000 square meters for four-layer circuit boards per year 200000 square meters
for six-layer circuit boards per year 150000 square meters for eight-layer and above circuit boards
per year and 100000 square meters for HDI boards per year. The technical renovation and
expansion project maintained the original plating equipment and process unchanged and added a
browning process to the existing production process. The additional plating capacity was all
outsourced. The technical renovation and expansion project began construction in 2013 was
completed in January 2018 and was commissioned from 10 February to 8 July 2018. The
construction of the expansion project met the requirements of the environmental impact report
approval and the conditions for environmental protection acceptance of the completed construction
project. In 2021 the national pollutant discharge permit of XingDa HongYe was renewed/replaced
with certificate number 91442000768405216J001P. In 2022 the national pollutant discharge permit
was changed with certificate number 91442000768405216J001P. In 2023 the national pollutant
discharge permit was changed with certificate number 91442000768405216J001P
2. Boluo Konka and Boluo Konka Precision
Boluo Konka Precision Technology Co. Ltd. was approved by the Huizhou Environmental
Protection Bureau in 2000 (H.S.H.J. [2000] No.23) and began production the same year. Its
pollution discharge permit number is 91441322721121283N001U.Boluo Konka enlisted the services of Huizhou Environmental Science Research Institute in January
2007 to carry out an environmental impact assessment for its expansion project. No. H.SH.H.J.
[2007] J32 Approval on Environmental Impact Report for Boluo Konka’s Double-sided and
Multilayer Board Project was issued by the Environmental Protection Bureau of Huizhou City on 8
February 2007. The approved expansion project included the installation of electroplating
equipment and processes allowing for an increase in production capacity to 1 million square meters
for single-sided circuit boards per year and 650000 square meters for double-sided and multilayer
circuit boards per year. Upon completion the project underwent an environmental protection
acceptance inspection satisfying the requirements of the environmental impact assessment approval.The company also obtained a pollutant discharge permit in the same year and underwent a name
change to Boluo Konka Precision Technology Co. Ltd. In 2020 the company received a national
pollutant discharge permit bearing certificate number 91441322799316208F001V. Boluo Konka
Precision will produce 1.65 million square meters per year of double-sided and multilayer circuit
67Konka Group Co. Ltd. Annual Report 2023
boards upon the Department of Ecology and Environment of Guangdong Province's approval of the
Report on the Environmental Impact of the Circuit Boards Expansion Project with an Annual
Capacity of 1 million square meters (Y.H.SH. [2023] No. 124) in June 2023.The regulations for industrial emissions and the particular requirements for controlling pollutant
emissions those are associated with production and operational activities.T
Num
Distrib ot Exc
ber
Name Type of Way ution al essi
Name of of Discharge Discharge Approved
of major of of di ve
major disch concentration/inte standards total
pollut polluta disch dischar sc disc
pollutants arge nsity implemented discharge
er nts arge ge ha harg
outle
outlets rg e
ts
e
PH total
PH 6-9; total
copper Total
copper≤0.3mg/L;
COD discharge
COD≤50mg/L;
ammonia of major
ammonia
nitrogen pollutants:
nitrogen≤8mg/L;
total COD
total
nitrogen Disch 49 19.061250
Main nitrogen≤15mg/L
total arge 7 tons/year;
Pollutio dischar ; total
phosphor of GB 21900-2008 83 ammonia ni
Xing n ge phosphorus≤0.5m
us total statio Discharge 5 trogen
Da sources outlet g/L; total Non
cyanide nary 1 Standard For to 3.0498
Hong of of the cyanide≤0.2mg/L e
total pollut Pollutants From ns tons/year;
Ye waste waste ; total
nickel ion Electroplating /y total
water water nickel≤0.1mg/L;
total iron sourc ea nitrogen
station total iron≤2mg/L;
total es r 32.9792
total
aluminum tons/year;
aluminum≤2mg/L
total
;
petroleum phosphorus
petroleum≤2mg/L
0.2082
; suspended
suspende tons/year
solids≤30mg/L
d solids
Sulfuric Three sulfuric acid Emission Standard Total2
acid on the fume≤30mg/m3; for Electroplating discharge:98
fume roof of nitrogen Pollutants 298656006
hydrogen Disch plant oxide≤200mg/m3 GB21900-2008 00 standard56
chloride arge 1 ten ; hydrogen Air Emission cube/year0
formalde of on the chloride≤30mg/m Limits Table 5 (note: the
Xing Waste 00hyde statio roof of 3; hydrogen Emission standard total
Da gas 0hydrogen Nonnary 14 plant 2 cyanide≤0.5mg/m of Volatile discharge is
Hong polluta stcyanide 3; Organic not stated epollut and
Ye nts annitrogen ion one on TVOC≤90mg/m3 Compounds for in the latestda
oxide sourc the ; Printing Industry version ofrd
ammonia es roof of benzene≤1mg/m3 DB44/815-2010; nationalcu
benzene the ; Guangdong Air dischargebe
toluene+x cantee toluene+xylene≤1 Pollutant Emission permit in/y
ylene n 5mg/m3; tin and Standard 2021; twoea
TVOC its DB44/27-2001 the exhaust
68Konka Group Co. Ltd. Annual Report 2023
tin and its compounds≤8.5m Second Level r towers
compoun g/m3; Standard in the were added
ds PM(dust)≤120mg Second Period in 2021;
PM(dust) /m3 Emission standard calculated
for Odor Pollutants based on
(GB 14554-1993) air volume
Table 2 Standard in
environme
ntal impact
assessment
)
1. Discharge
standard of
discharge permit:
Discharge
Standard of
Electroplating
31
Water Pollutant for
1. Emission 8
Electroplating
standard for 30
DB44/1597-2015
pollution 0
Table 1 Pearl
discharge to
River Delta
certificate: ns
Discharge COD is
copper≤0.5mg/L; /y
Standard; Water 19.2
COD≤80mg/L; ea
Pollutant tons/year;
ammonia r
PH Discharge Limit ammonia
Disch nitrogen≤10mg/L N
copper Main Standard of nitrogen is
Boluo arge ; total ot
Pollutio COD dischar Guangdong 2.4
Konka of nitrogen≤20mg/L e:
n ammonia ge Province tons/year;
and statio ; total ac
sources nitrogen outlet DB44/26-2001; 2. total Non
Boluo nary 1 phosphorus≤0.5m co
of total of the Local discharge nitrogen is e
Konka pollut g/L; 2. local rd
waste nitrogen waste standard: BFBH 4.8
Precis ion emission in
water total water [2019] No. 58 tons/year.ion sourc standard: g
phosphor station Document: COD Note:
es copper≤0.5mg /L; to
us ammonia nitrogen according
COD≤30mg/L; di
total phosphorus to the
ammonia sc
based on discharge
nitrogen≤1.5mg/ ha
"Environmental certificate
L; total rg
Quality Standards
nitrogen≤10mg/L e
for Surface Water
; total pe
GB3838-2002 "
phosphorus≤0.3m r
Category IV water
g/L mi
standard the total
t
nitrogen discharge
reaches 50% of
discharge limit
requirement of the
corresponding
industry
Boluo Sulfuric Disch Six on sulfuric acid Emission Standard The total
Konka Waste acid arge the fume≤30mg/m3 for Electroplating discharge is
and gas poll fume of 20 roof of ；nitrogen Pollutants not stated
Non
/
Boluo utants hydrogen statio plant oxide≤200mg/m3 GB21900-2008 in the latest
e
Konka chloride nary 1 ；hydrogen Air Emission version of
Precis formalde pollut fourtee chloride≤30mg/m Limits Table 5 national
69Konka Group Co. Ltd. Annual Report 2023
ion hydehydr ion n on 3；TVOCogen Guangdong Air discharge
ogen sourc the chl；benzenen Pollutant Emission permit in
cyanide es roof of chlori； Standard 2020
nitrogen plant 2 methylbenzenorid DB44/27-2001 the
oxide and e≤30； Second Level
ammonia one in dimethylbenzene Standard in the
benzene sewag de≤30mg/；tin Second Period
methylbe e and its Emission standard
nzene station compounds≤8.5m for Odor Pollutants
TVOC g/m3；PM (GB 14554-1993)
tin and its （dust）≤≤stand Table 2 Standard
compoun i；oil Emission standard
ds PM fume≤2mg/m3 of cooking fume
(dust) oil (GB18483-2001)
fume
Treatment of pollutants
1. XingDa HongYe
All production equipment of Guangdong Xingda Hongye Electronics Co. Ltd. has been set up with
supporting environmental protection facilities according to the requirements of environmental
impact assessment. The discharge of wastewater waste gas and noise as well as the disposal of all
solid wastes in the Company all met the standards during the Reporting Period.The sewage treatment centre of Guangdong Xingda Hongye Electronics Co. Ltd. with an
investment of about RMB15 million was formally put into production in June 2007 and the
treatment capacity of the sewage treatment facility was 2566 tons/day. After technical
improvement and expansion the capacity increased to 2900 tons/day with the treatment process
remaining unchanged. In 2022 RMB20 million was invested to increase a set of sewage treatment
facility which had been put into operation so as to ensure stable discharge of sewage up to standard.Currently the sewage treatment facilities are functioning well and the main pollutant discharge
meets the discharge standards and environmental assessment standards. The pollutants are
discharged to Fushachong after being treated at the self-built sewage treatment station.
2. Boluo Konka and Boluo Konka Precision
All production equipment of Boluo Konka and Boluo Konka Precision has been reported for
environmental assessment review and approval. The supporting environmental protection and
pollution control facilities have been designed by pollutant type and concentration and effectively
operated in a targeted manner. During the Reporting Period the discharge standards were met in
terms of industrial waste water exhaust and factory noise and all industrial waste generated was
disposed of in compliance with environmental laws and regulations.Boluo Konka was established in 2000. To manufacture single sided PCBs it invested
70Konka Group Co. Ltd. Annual Report 2023
approximately RMB 5 million in constructing a sewage treatment station without the biochemical
treatment function and featuring a discharge capacity of 300 tons per day. In 2007 Boluo Konka
expanded its factory by starting the Phase II project which was submitted for environmental
assessment as Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project
owner was changed into Boluo Konka Precision). It spent about RMB 10 million on constructing
the Phase II sewage treatment station to add the biochemical treatment function with a discharge
capacity of 800 tons per day.In 2019 according to the requirements in the documents issued by Boluo County Ecology and
Environment Bureau the two sewage treatment stations of Boluo Konka and Boluo Konka
Precision must be upgraded towards higher standards. Through comprehensive assessment of the
professional environmental protection company it was decided that the sewage treatment stations
of the said companies be combined to meet the upgrading requirements. Boluo County Ecology and
Environment Bureau approved the combination of the discharge outlets of the aforementioned
companies and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the
combination of discharge outlets the discharge capacity would reach 1100 tons per day. The
aforementioned two companies spent about RMB 20 million between 2019 and 2020 on upgrading
the sewage treatment stations towards higher standards and added industrial advanced processes
and treatment systems such as RO water treatment Fenton oxidation and MBR films. After the
technological improvements and expansion the sewage treatment reaches 2200 tons per day (with
a discharge capacity of 1100 tons per day) with a reuse rate of more than 60%. At present the
waste water treatment facilities are operating in good conditions; the discharge of major pollutants
meets the discharge standards. After advanced treatment of the water reuse facilities the water
treated by the sewage stations that meets the standards will be reused in the plants while the
remaining water will be discharged to the municipal pipe network to be processed by the urban and
rural water treatment factory before being discharged to the Gongzhuang Rive section of Dongjiang
River.Environmental self-monitoring plan
1. XingDa HongYe
According to the requirements of the Environmental Protection Administration Xingda Hongye
attaches great importance to environmental monitoring management. Thus pursuant to the
Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises
the Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co. Ltd. and the reply opinions for environmental impact
assessment the Company has formulated the Environmental Self-Monitoring Plan and reported to
the municipal environmental protection bureau for approval and record. It implements online
71Konka Group Co. Ltd. Annual Report 2023
monitoring for the PH COD and ammonia nitrogen pollutants discharged in wastewater through
real-time monitoring and an automatic frequency of every two hours entrusts the qualified third-
party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment and
entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring.All self-monitoring plan results will be reported and disclosed on public platforms on a periodic
basis.In the case of normal production the results will be updated on a daily basis with online
monitoring data are disclosed in real time or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.
2. Boluo Konka and Boluo Konka Precision
In accordance with the requirements of the environmental protection administration Boluo Konka
and Boluo Konka Precision attach great importance to environmental monitoring management.Thus pursuant to the Measures for Self-Monitoring and Information Disclosure of National Key
Monitored Enterprises and requirements of the environmental impact assessment they have
formulated the Environmental Self-Monitoring Plan and reported to the Municipal Environment
Protection Bureau for approval and record. Meanwhile the PH and flow rate of wastewater
discharge are automatically monitored in real time and the pollutants such as COD ammonia
nitrogen and total phosphorus are automatically monitored online every two hours. Furthermore
they entrust the qualified third-party online monitoring equipment operation and maintenance
institute to carry out periodic maintenance on automatic monitoring equipment and monitoring data
networking equipment and and entrust the qualified third-party monitoring unit to carry out the
"three wastes" project monitoring in line with the newly released national pollutant discharge
permit and the corporate self-monitoring plans that have been filed. All self-monitoring plan results
will be reported and disclosed on public platforms on a periodic basis. In the case of normal
production the results will be updated on a daily basis with online monitoring data are disclosed in
real time or manual monitoring data on a monthly and quarterly basis are disclosed every two hours.Contingency plan for emergent environmental incident
1. XingDa HongYe
In strict accordance with requirements of laws regulations and relevant documents such as Law of
the People’s Republic of China on Emergency Response and Interim Measures on Environmental
Emergency Response Plan Guangdong Xingda Hongye Electronics Co. Ltd. has established risk
prevention measures and emergency response plans kept its emergency equipment in a normal state
formulated the Contingency Plan for Emergent Environmental Incident and put on records at
72Konka Group Co. Ltd. Annual Report 2023
Zhongshan Environmental Protection Bureau Guangdong Province record No.: 4420002017044M.In addition the Company conducts a drill of major environmental pollution incident on its factory
to enhance its emergency response capabilities for emergent environmental pollution incidents.Furthermore Guangdong Xingda Hongye Electronics Co. Ltd. has built an emergency pool (600m3
underground pool of sewage treatment station) and set up a fire pool (500m3 and located on Floor 1
of Factory Building No. 2) which serve as temporary storage pools for exterior drainage or fire
drainage to eradicate accidental discharge of wastewater in the case of failed operation of the
sewage transmission pipeline or fire accident due to outage or other special circumstances. The
sewage transmission pipeline has been equipped with anti-corrosion and cathodic protection using
anti-corrosion pipes and carbon steel pipes. Pursuant to the new discharge standards the related
discharge pipeline has been modified and the production department has been required to discharge
strictly in accordance with discharge standards to cut the costs of wastewater treatment. Different
types of wastewater are normally and properly treated through fine shunting. Personnel have been
specially arranged to manage the chemical liquid warehouse and exert reasonable control and
requirements over the liquid discharge by the plant and timely transportation of the liquid by
suppliers; emergency tools such as protective masks boots and immiscible pumps have been
equipped.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the
People's Republic of China Interim Measures for the Management of Emergency Plans for
Unexpected Environmental Incidents other related laws and regulations as well as the requirements
of relevant documents. They have established risk prevention measures and emergency plans such
as Emergency Plan for Unexpected Environmental Incidents and have their emergency equipment
run in a normal status. In addition they have filed with Boluo County Branch of Ecology and
Environment Bureau in Huizhou Guangdong and Huizhou Ecology and Environment Bureau
respectively with the file No. 441322-2020-0073-M and 441301-2021-004-M. They organize all
staff to conduct drills for major environmental pollution incidents every year to improve their
ability for the emergency response to unexpected environmental pollution incidents.Boluo Konka and Boluo Konka Precision are well equipped with all necessary facilities for
emergency response to unexpected incidents including an emergency response pool of industrial
waste water (500m3 under the ground of the sewage treatment station) and a firefighting reservoir
(300m3 located beside the staff dormitory building). In the event of an unexpected environmental
incident such as leakage or failure of a waste water transporting pipe the emergency response pool
will prevent any accident of industrial waste water; in the event of a fire safety accident the
firefighting reservoir will be put into use. All departments are required to discharge pollutants
73Konka Group Co. Ltd. Annual Report 2023
strictly in accordance with pollutant discharge standards to reduce the costs of waste water
treatment by properly and reasonably dividing solution and waste water discharged from the plants.The chemical warehouses are managed by designated personnel with standard control and
requirements over the loading and unloading of chemical products by suppliers. In terms of
emergency response supplies a full set of emergency rescue tools are prepared including gas masks
acid and alkaline resistant boots gloves goggles safety ropes helmets fire sand and submersible
pumps.Input in environmental governance and protection and payment of environmental protection tax
In 2023 nearly RMB58 million was input in environmental governance and protection and
RMB77700of environmental protection tax was paid in total .Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□ Applicable √ Not applicable
No administrative punishments were received in the Reporting Period due to environmental issues.Reason for Impact of
Penalty Rectification
Subsidiary punishmen Violations production and
results measures
t operation
Projects
Failure to complete the
under
Jiangxi High environmental impact
constructio A fine of The relevant The relevant
Transparent assessment approval as
n not RMB0.4 production production lines
Substrate Material required by the
submitted 334 lines have been have been shut
Technology Co. environmental impact
for million shut down down
Ltd. assessment management
approval as
method.required
Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co. Ltd. for
2023 was approximately RMB18 million mainly used for the depreciation in Environmental
governance equipment and facilities treatment of sewage waste gas and solid waste as well as the
maintenance and upgrading of environmental protection equipment.
2. Boluo Konka and Boluo Konka Precision
The environmental protection investment of Boluo Konka and Boluo Konka Precision for 2023 was
approximately RMB40 million of which RMB13 million was used for daily treatment of sewage
and waste gas and facility maintenance RMB25 million was used for extension of sewage
74Konka Group Co. Ltd. Annual Report 2023
treatment station (of new supporting plant) and RMB2 million was used for constructing the waste
gas exhaust tower of the new plant.Other Environmental Information
According to the examination by the Company the Company and its other holding subsidiaries are
not key pollutant units. All have faithfully implemented the laws and regulations related to
environmental protection such as Environmental Protection Law of the People's Republic of China
Water Pollution Prevention and Control Law of the People's Republic of China Law of the People's
Republic of China on the Prevention and Control of Atmospheric Pollution Law of the People's
Republic of China on Prevention and Control of Pollution From Environmental Noise Law of the
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Waste in the daily production and operation.II Social Responsibility
The Company insists the principle of health stability and sustainable development to benefit
shareholders and employees and satisfy customers. In pursuit of economic profits and protection of
shareholders’ profits the Company is active in protecting legal rights of debtors and employees
treating suppliers customers and consumers in good faith and participating in environmental
protection and community establishment for harmonious development of the Company and society.
1. To protect rights of shareholders and creditors
(1) The Company protects rights of shareholders
The Company insists protection of rights for all shareholders especially equal status and legal
rights for medium and small shareholders and make insurance of rights to be informed
participation and vote.The Company would perform all obligations of information disclosure to ensure timely accurate
and complete information and strictly execute confidential system of registrar and insider
information to guarantee justice.The Company pays attention to repay to shareholders and insists mutual development with
investors. In the previous three years the Company shares dividends with all shareholders. The
Company strict executes dividend policies regulated in Articles of Association. All cash dividends
comply with regulations in Articles of Association and requirements in shareholders’ conference.
(2) The Company protects rights of creditors
In full consideration of legal rights of creditors the Company complies with strict business rules of
credit cooperation to guarantee legal rights of creditors. No damages upon rights of creditors
75Konka Group Co. Ltd. Annual Report 2023
happened.
2. The Company performs responsibilities to suppliers and customers
(1) It is devoted to improve customer service quality.
The Company is insisting philosophy of customer orientation to strengthen customer service
management service consciousness for employees service levels and to protect rights for
customers. Through customer service hot-line field visit and follow-up service the Company has
set a good corporate image for customers.
(2) Be honest to suppliers
Following the principle of integrity and mutually beneficial cooperation the Company keeps good
cooperative relations with suppliers at each level. The corporate principle is open fair and impartial
to standardize procurement protect suppliers’ legal rights and lay solid foundation for further
cooperation.
3. Be enthusiastic to social and public welfare undertakings
Based on the principle of appreciating and repaying the society the Company has participated in all
kinds of activities for public welfare cooperated with society undertaken social responsibilities
actively and promoted harmonious development between enterprise and society.
4. Be responsible for employees
The Company insists the principle of people orientation to improve working environment promote
occupational skills provide opportunity and platform for development and growth and encourage
self upgradation and realization for employees. Mutual improvement for employees and enterprise
could be achieved.
(1) Be honest and law-abiding to protect legal rights for employees
The Company would strictly comply with laws and regulations in Labor Law and Labor Contract
Law to sign labor contract with employees with fair treatment in employment payment promotion
training demission and retirement. Also the Company would pay all kinds of insurances and
housing fund for employees. Regular physical examination would be organized for each year. Any
problems found would require re-examination and consultation from a doctor.The Company would improve living quality; enhance cohesive force and sense of belongings
through a series of safeguard measures.
(2) To protect occupational health for employees
76Konka Group Co. Ltd. Annual Report 2023
The Company would establish and perfect training safety assessment by security system to
guarantee the safety and occupational health for employees. On the other hand by promotion of the
importance of safety safety awareness would be rooted in the heart to make all employees abide by
safety standards and fully play subjective initiative in protecting self-occupational safety and
production safety.
(3) To promote occupational skills by diversified professional training
The Company has always paid great attention on diversified training for employees. On the one
hand the Company would be meticulous in training of regular business and occupational skills and
carry out all requirements positively to improve professional levels by normal training management.On the other hand the Company would establish methods of self-training platform training
instructor theme training and lectures to provide colorful training activities. Besides the work
professional and comprehensive quality would be fully promoted.
5. Be responsible for environment
The Company concerns about environmental changes and close relationships with environment by
creating low carbon economy in technical innovation from green manufacturing green products to
green industry circular economy. The Company would provide efforts in protecting global
ecological environment. In June 2012 subsidized products catalogue had been released jointly by
National Development and Reform Commission Ministry of Industry and Information and Ministry
of Finance.Subsequently the Company would undertake all social responsibilities by improving strategic
management sustainable development and enterprise economic efficiency. It would reattribute all
shareholders and would protect legal rights for creditors and employees. To be honest to suppliers
and customers the Company would serve local economic development and participate in social
public welfare activities and environment protection. It would undertake all responsibilities in many
fields and make attributions to social economic and environmental sustainable development for a
socialism harmonious society.III Consolidation and Expansion of Poverty Alleviation Outcomes and Rural Revitalization
In 2023 the Company continued to actively purchase the agricultural and sideline products from
Tianzhu and Sansui counties in Guizhou Province under the "assistance by consumption" project.The total amount spent on this project in 2023 amounted to RMB67800. The Company held
donation ceremonies for "one-on-one" pairing assistance with students from Chengguan Third
Primary School in Sansui County and for aesthetic education classrooms. A total of 100 Konka
"dream partners" donated a sum of RMB328000. In October 2023 the Company paid visits to the
77Konka Group Co. Ltd. Annual Report 2023
students receiving assistance. Representatives of the Company's assistance team engaged in "hand-
in-hand face-to-face and heart-to-heart" conversations with the students providing them with
economic aid and material support to ensure their basic living needs were met.
78Konka Group Co. Ltd. Annual Report 2023
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s De Facto Controller Shareholders Related Parties and
Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Where there Had Been an Earnings Forecast for an Asset or Project and the Reporting
Period Was still within the Forecast Period Explain why the Forecast Has Been Reached
for the Reporting Period.□Applicable √ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□Applicable √ Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□Applicable √ Not applicable
79Konka Group Co. Ltd. Annual Report 2023
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
on the Financial Statements
□Applicable √ Not applicable
V Explanations Given by the Board of Directors the Supervisory Board and the
Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion”
on the Financial Statements of the Reporting Period
□Applicable √ Not applicable
VI YoY Changes to Accounting Policies Estimates or Correction of Material Accounting
Errors
√ Applicable □ Not applicable
On 30 November 2022 the Ministry of Finance issued Interpretation No. 16 for the AccountingStandards for Business Enterprises which stipulates the “accounting treatments for deferredincome taxes associated with assets and liabilities arising from a single transaction to which theinitial recognition exemption does not apply” effective for the Company as of 1 January 2023.For lease liabilities and right-of-use assets recognised at the beginning of the earliest period of
financial statement presentation in which the provision is first implemented that give rise to
taxable temporary differences and deductible temporary differences as a result of a single
transaction to which the provision applies the Company has adjusted the cumulative effect to
retained earnings at the beginning of the earliest period of financial statement presentation and
other relevant financial statement items in accordance with the said provision and Accounting
Standard No. 18 for Business Enterprises—Income Tax.VII YoY Changes to the Scope of the Consolidated Financial Statements
√ Applicable □ Not applicable
Please refer to 6. Changes in the Scope of Consolidated Financial Statements for the Reporting
Period of 2. Revenue and Costs of IV Core Business Analysis in Part III Operating Performance
Discussion and Analysis of this Report for details.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor ShineWing Certified Public Accountants LLP
The Company’s payment to the domestic independent auditor
220
(RMB’0000)
80Konka Group Co. Ltd. Annual Report 2023
How many consecutive years the domestic independent auditor has
5 years
provided audit service for the Company
Names of the certified public accountants from the domestic
Tang Qimei Liu Lihong
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants have
3 years 2 years
provided audit service for the Company
Name of the overseas independent auditor (if any) N/A
The Company’s payment to the overseas independent auditor
0
(RMB’0000) (if any)
How many consecutive years the overseas independent auditor has
N/A
provided audit service for the Company (if any)
Names of the certified public accountants from the overseas
independent auditor writing signatures on the auditor’s report (if N/A
any)
How many consecutive years the certified public accountants have
N/A
provided audit service for the Company (if any)
Indicate by tick mark whether the independent auditor was changed for the Reporting
Period
□ Yes √ No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
The Company appointed ShineWing Certified Public Accountants LLP as the internal control
auditor in 2023 with RMB0.7 million (tax-exclusive) of payment for the internal control audit.IX Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
X Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Major Legal Matters
√ Applicable □ Not applicable
81Konka Group Co. Ltd. Annual Report 2023
Index
Involved Executi Discl to
General information amount Provisio(RMB’0000 n Progress
Decisions and on of
effects decision osure
disclos
date ed) s inform
ation
Since Jiangxi Xinxin Jianan
Engineering Co. Ltd. (hereinafter
referred to as "Jiangxi Xinxin")
Jiangxi Shining Stone Technology
Development Company Limited
(hereinafter referred to as "Jiangxi
Shining Stone") Jiangxi Zhongyi
Decorative Materials Co. Ltd.(hereinafter referred to as "Jiangxi
Zhongyi") failed to repay the loan
and its interest to Jiangxi Branch The case is http://
of China Great Wall Asset reheard The case is The 25 www.c
Management Co. Ltd. (hereinafter 31375.8 No and in the reheard and in the case is June ninfo.creferred to as “Jiangxi Branch of second second instance. in trial 2019 om.cn/Great Wall Asset”) who sued the instance. new/in
court for a judgment to repay the dex
loan of RMB300 million default
penalty of RMB108000 and
interest of RMB13.65 million and
at the same time nine guarantors
including Jiangxi Kangjia Xinfeng
Microcrystalline and Nano
Microcrystalline were requested to
undertake joint and several liability
guarantee.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental The case is principle of http://
Technology Co. Ltd. sued Dalian reheard prudence the The 19 www.c
Jinshunda Materials Recycling 9383.08 No and in the Company has Septe ninfo.c
Co. Ltd. Huanjia Group Wang first accrued
case is
in trial mber om.cn/
Bingde Zhang Xueyin and Wang instance. corresponding 2020 new/in
Renping requiring them to return impairment dex
prepayment and pay liquidated reserves in
damages. accordance withaccounting
policies.The case is
reheard and in the
Because of a dispute over a first instance.purchase and sales contract the Based on the
Company's subsidiary Konka The case is principle of http://Huanjia sued Dalian Xinjie reheard prudence the 19 www.cRenewable Resources Co. Ltd. The
Huanjia Group Wang Bingde 9383.08 No and in the
Company has case is Septe ninfo.caccrued mber om.cn/
Zhang Xueyin and Wang Renping firstinstance. corresponding
in trial 2020 new/in
requiring them to return impairment dex
prepayment and pay liquidated reserves in
damages. accordance with
accounting
policies.Because of a dispute over a The case is The case is 19 http://
purchase and sales contract the 2307.9 No reheard reheard and in the The Septe www.c
Company's subsidiary Konka and in the first instance. case is mber ninfo.c
82Konka Group Co. Ltd. Annual Report 2023
Huanjia sued Dalian Tianxing first Based on the in trial 2020 om.cn/
Renewable Resources Co. Ltd. instance. principle of new/in
Huanjia Group Wang Bingde prudence the dex
Zhang Xueyin and Wang Renping Company has
requiring them to return accrued
prepayment and pay liquidated corresponding
damages. impairment
reserves in
accordance with
accounting
policies.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental principle of http://
Technology Co. Ltd. sued The case is prudence the 19 www.c
Huanjia Mingtai (Dalian) reheard3302.64 No and in the Company has
The
case is Septe ninfo.cRenewable Resources Co. Ltd. accrued mber om.cn/
Huanjia Group Wang Bingde first corresponding in trial 2020 new/in
Zhang Xueyin and Wang Renping instance. impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental The case is principle of http://Technology Co. Ltd. sued Lankao reheard prudence the The 19 www.cShunjia Renewable Resources 3358.8 No and in the Company has case is Septe ninfo.cRecycling Co. Ltd. Huanjia first accrued in trial mber om.cn/Group Wang Bingde Zhang corresponding 2020 new/in
Xueyin and Wang Renping instance. impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental principle of http://
Technology Co. Ltd. sued Henan The case is prudence the 19 www.c
Shunhenghui Renewable reheard Company has The
Resources Recycling Co. Ltd. 3337.29 No and in the accrued case is
Septe ninfo.c
mber om.cn/
Huanjia Group Wang Bingde first corresponding in trial 2020 new/in
Zhang Xueyin and Wang Renping instance. impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.Because of a dispute over a The case is
purchase and sales contract the reheard and in the
Company's subsidiary Konka The case is first instance. http://
Huanjia Environmental reheard Based on the The 19 www.c
Technology Co. Ltd. sued Henan 3358.08 No and in the principle of case is Septe ninfo.c
Jiaxin Renewable Resources first prudence the in trial mber om.cn/
Recycling Co. Ltd. Huanjia instance. Company has 2020 new/in
Group Wang Bingde Zhang accrued dex
Xueyin and Wang Renping corresponding
requiring them to return impairment
83Konka Group Co. Ltd. Annual Report 2023
prepayment and pay liquidated reserves in
damages. accordance with
accounting
policies.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental principle of http://
Technology Co. Ltd. sued Henan The case is prudence the 19 www.c
Shengxiang Renewable Resources reheard2922 No and in the Company has
The
case is Septe ninfo.cRecycling Co. Ltd. Huanjia accrued mber om.cn/
Group Wang Bingde Zhang first corresponding in trial 2020 new/in
Xueyin and Wang Renping instance. impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.The case is retired
and is pending.As the bills held by the Company Based on the
failed to be paid upon maturity the principle of
Company filed a lawsuit with the prudence the http://
court requesting the latter to order The case is Company has The 19 www.c
Wuhan Jialian Agricultural 20000 No retired and accrued case is Septe ninfo.c
Technology Development Co. is pending. corresponding in trial mber om.cn/
Ltd. to pay the aforesaid bills and impairment 2020 new/in
corresponding interest to the reserves in dex
Company. accordance with
accounting
policies.Because of a dispute over a
purchase and sales contract the The Company
Company's subsidiary Dongguan won and the case
Konka Electronic Co. Ltd. filed a is in execution.lawsuit with Shenzhen Nanshan Based on the
District People's Court requesting principle of http://
the latter to order Dong Guan Gao prudence the The www.c
Neng Polymer Limited Company The case is Company has case is 1 ninfo.c
Wang Dong Shenzhen Xinlian 9010.1 No in accrued in June
Xingyao Trading Co. Ltd. execution. corresponding executio 2021
om.cn/
new/in
Shenzhen Jinchuan Qianchao impairment n. dex
Network Technology Co. Ltd. reserves in
Puning Junlong Trading Co. Ltd. accordance with
Huang Zhihao to pay the overdue accounting
payment and corresponding policies.liquidated damages.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental
Technology Co. Ltd. sued The case is
principle of http://
reheard prudence the The 1 www.cZhejiang Jiade Renewable Company has ninfo.c
Resources Recycling Co. Ltd. 3562.89 No and in thefirst accrued
case is June om.cn/
Huanjia Group Wang Bingde corresponding in trial 2021 new/in
Zhang Xueyin and Wang Renping instance. impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.
84Konka Group Co. Ltd. Annual Report 2023
The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental
Technology Co. Ltd. sued The case is
principle of http://
reheard prudence the The 1 www.cZhejiang Zhijie Renewable Company has ninfo.c
Resources Recycling Co. Ltd. 3562.89 No and in thefirst accrued
case is June om.cn/
Huanjia Group Wang Bingde in trial 2021
Zhang Xueyin and Wang Renping instance.corresponding new/in
impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental principle of http://
Technology Co. Ltd. sued The case is prudence the www.c
Zhejiang Xinkai Renewable reheard3562.89 No and in the Company has
The 1
case is June ninfo.cResources Recycling Co. Ltd. accrued om.cn/
Huanjia Group Wang Bingde first corresponding in trial 2021 new/in
Zhang Xueyin and Wang Renping instance. impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental principle of http://
Technology Co. Ltd. sued Henan The case is prudence the www.c
Huanjia Trust Environmental reheard Company has The 1 ninfo.c
Protection Technology Co. Ltd. 3358.8 No and in the accrued case is June om.cn/
Huanjia Group Wang Bingde first corresponding in trial 2021instance. new/inZhang Xueyin and Wang Renping impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.The case is
Because of a dispute over a reheard and in the
purchase and sales contract the first instance.Company's subsidiary Konka Based on the
Huanjia Environmental principle of http://
Technology Co. Ltd. sued Henan The case is prudence the www.c
Xincheng Renewable Resources reheard The 1
Recycling Co. Ltd. Huanjia 3358.8 No and in the
Company has
accrued case is June
ninfo.c
om.cn/
Group Wang Bingde Zhang first in trial 2021
Xueyin and Wang Renping instance.corresponding new/in
impairment dex
requiring them to return reserves in
prepayment and pay liquidated accordance with
damages. accounting
policies.Because of a dispute over a The case is The case is
purchase and sales contract the reheard and in the http://reheard The 1
Company's subsidiary Konka www.c2090 No and in the first instance. case is June
Huanjia Environmental first Based on the
ninfo.c
in trial 2021
Technology Co. Ltd. sued Henan om.cn/instance. principle of
Guozheng Environmental prudence the new/in
85Konka Group Co. Ltd. Annual Report 2023
Technology Co. Ltd. Huanjia Company has dex
Group Wang Bingde Zhang accrued
Xueyin and Wang Renping corresponding
requiring them to return impairment
prepayment and pay liquidated reserves in
damages. accordance with
accounting
policies.Because of a dispute over a trust
contract the Company’s
subsidiary Henan Frestec
Refrigeration Appliance Co. Ltd.sued Shenzhen Meisenyuan Plastic
Electronics Co. Ltd. Shantou http://
Meisen Technology Co.Ltd. Lin The case The 1 www.c
Yuanqin Huang Ruirong has entered The Company case is
Chuangfu Commerce&Trade Plaza 4211.33 No the won and the case in
Dece ninfo.c
Real Estate execution is in execution. executio
mber om.cn/
2021 new/in
Development(Huizhou)Co.Ltd. phase. n. dex
requiring an order to terminate the
contract and them return the
payment for goods pay liquidated
damages and give priority to the
mortgaged property.Because of a dispute over a trust
contract the Company’s
subsidiary Hainan Konka Material
Technology Co. Ltd. sued
Shenzhen Meisenyuan Plastic The case The http://
Electronics Co. Ltd. Shantou has entered The Company case is 1 www.c
Meisen Technology Co.Ltd. 6806.6 No the won and the case in Dece ninfo.c
Jiangsu East China Hardware City execution is in execution. executio mber om.cn/
Co. Ltd. requiring an order to phase. n. 2021 new/in
terminate the contract and them dex
return the payment for goods pay
liquidated damages and give
priority to the mortgaged property.Because of a dispute over
repurchase the Company sued Luo The case The http://
Zaotong Luo Jingxia Luo has entered The Company case is 1 www.c
Zongyin Luo Zongwu and 24875.22 No the won and the case in Dece ninfo.c
Shenzhen Yaode Technology Co. execution is in execution. executio mber om.cn/
Ltd. requiring an order to pay the phase. n. 2021 new/in
share repurchase and interests. dex
Note: Courts or arbitration bodies ruled in favor of the Company in the following cases which are currently under enforcement. Details of these cases
can be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2019-63) the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97) the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89) the Announcement on Accumulative Lawsuits and
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37) the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) and the Company's periodic reports: 1. As matured notes were failed to be accepted the Company has filed
a lawsuit with the court to request China Energy Electric Fuel Co. Ltd. China Energy (Shanghai) Enterprise Co. Ltd.. Shanghai Nengping industrial
Co. Ltd. and Shenzhen Qianhai Baoying Factoring Co. Ltd. to pay the bill and the corresponding interest to the Company; 2. As matured notes were
failed to be accepted the Company has filed a lawsuit with the court to request Shanghai Huaxin International Group Co. Ltd. and Tianjin
International Trade Petrochemical Co. Ltd. to pay the bill and the corresponding interest to the Company; 3. As matured notes were failed to be
86Konka Group Co. Ltd. Annual Report 2023
accepted the Company has filed a lawsuit with the court to request Shanghai Huaxin International Group Co. Ltd. Qingdao Bonded Zhongshe
International Trading Co. Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd. to pay the bill and the corresponding interest to the
Company; 4. As a consequence of the non-payment of a bill upon its expiry Kongka Factoring has instituted legal proceedings before the court. The
lawsuit seeks an injunctive order mandating Tahe Group Co. Ltd. Fuzhou Taijia Industrial Co. Ltd. and Xiamen Lianchuang Microelectronics Co.Ltd. to remit payment for the bill amount along with the corresponding interest to Kongka Factoring.; 5. As matured notes were failed to be accepted
the Company has filed a lawsuit with the court to request Hefei Huajun Trading Co. Ltd. and Wuhan Jialian Agricultural Technology Development
Co. Ltd. to pay the bill and the corresponding interest to the Company; 6. Due to dispute arisen from a logistics contract the Company’s subsidiary
Anhui Konka filed a lawsuit to request the freight forwarder Shanghai Triangle Link Logistics Co. Ltd. Shenzhen Branch to make compensation; 7.Due to contract dispute the Company’s subsidiary Shenzhen Nianhua applied for arbitration to request the respondent Fang Xianglong and Jiang Yan
to make compensation for corresponding annual profit and fund possession cost; 8. Due to payment dispute the Company’s subsidiary Hong Kong
Konka applied for an arbitration to Shenzhen Court of International Arbitration to request the respondent Makena Electronic (Hong Kong) to pay for
goods and liquidated damages; 9. Because of a dispute over capital increase the Company's subsidiary Shenzhen Konka Investment Holding Co.Ltd. applied for arbitration with the Shenzhen Court of International Arbitration (SCIA) requesting the respondents Elion Resources Group and
Elion Ecological Co. Ltd. to perform the repurchase obligation; 10. As a result of a dispute stemming from an international sale of goods contract
Anhui Konka Electronic Co. Ltd. a subsidiary of the Company has initiated legal proceedings against Maoxinyuan Electronics (Hong Kong) Co.Ltd. The lawsuit seeks an injunctive order compelling the respondent to pay the applicant the overdue payment interest losses; 11. As a result of a
dispute arising from an international sale of goods contract Anhui Kangzhi Trade Co. Ltd. a subsidiary of the Company has initiated legal
proceedings against B&L TECHNOLOGY CO. LIMITED. The lawsuit seeks an injunctive order compelling the respondent to pay the purchase
price as well as any penalties for breach of contract. 12. Because of a dispute over a purchase and sales contract the Company's subsidiary Konka
Huanjia Environmental Technology Co. Ltd. sued Dalian Guangxin Environmental Protection Equipment Technology Development Co. Ltd.requiring the latter to return equipment payment already made and pay liquidated damages. 13. Because of a dispute over a contract the Company
filed a lawsuit with Zhengzou Intermediate People's Court requiring Henan Radio and Television Network Co. Ltd. to take delivery of goods make
payment for goods and pay interest and liquidated damages according to the contract. 14. As a result of contractual disputes Shenzhen Konka
Unifortune Technology Co. Ltd. a subsidiary of the Company has initiated legal proceedings against Shenzhen Yaode Technology Co. Ltd.Dongsheng Xinluo Technology (Shenzhen) Co. Ltd. Shenzhen Hongyao Dingsheng Investment Management Limited Partnership Shenzhen
Xiangrui Yingtong Investment Management Limited Partnership Luo Jingxia Luo Zongwu Luo Zongyin Luo Zaotong and Luo Saiyin seeking
restitution for goods received and claiming damages for breach of contract. 15. On account of the infringement of the Company’s trademark rights
and the practice of unfair competition a lawsuit has been instituted by the Company against Xinshang Electronics Co. Ltd. located in Fu’an City as
well as Fujian Zhaoguan Industry and Trade Co. Ltd. Jinhua Kangjia Medical Equipment Factory and Wang Jun seeking an injunctive order to halt
the infringement and claiming compensation for any incurred losses. 16. Due to the dispute over the entrustment contract Anhui Kangjia Electronics
Co. Ltd. a subsidiary of the company sued Shenzhen Meisen Plastic Electronics Co. Ltd. Shantou Meisen Technology Co. Ltd. Lin Yuanqin
Huang Ruirong and Jiangsu Huadong Hardware City Co. Ltd. asking for an order to terminate the contract return the payment for goods and pay
liquidated damages and give priority to the mortgage property. The case is being executed; 17 Due to the contract dispute the Company's subsidiary
Anhui Kangjia Electronics Co. Ltd. sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisen Source Plastic Electronics Co. Ltd. Lin Yuanqin
Huang Ruirong Jiangsu Huadong Hardware City Co. Ltd. requiring the order to terminate the contract the defendant to return the payment and pay
liquidated damages the mortgage property priority compensation the case is being executed; 18. Due to the dispute over the loan contract the
Company sued Yantai Kangyue Investment Co. Ltd. requiring the defendant to repay the loan and interest and the case is being executed. 19. Due to
the dispute over the guarantee contract Anhui Konka Electronics Co. Ltd. a subsidiary of the Company sued Maoxinyuan Electronics (Shenzhen)
Co. Ltd. requesting the defendant to assume joint and several guarantee liability for the plaintiff and the case is being executed; 20. Due to the share
buyback dispute the Company's subsidiary Shenzhen Nianhua Enterprise Management Co. Ltd. sued Fang Xianglong and Jiang Yan to buy back the
share and pay the buyback price and the case is being executed. 21. Due to the dispute over the sales contract Sichuan Kangjia Intelligent Terminal
Technology Co. Ltd. a subsidiary of the Company sued Shenzhen Junxing Communication Technology Co. Ltd. Shenzhen Hongxing Fengda
Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Liuyang Huaichuan Heyuan Villa Co. Ltd. Zeng Jiankai and
Zhong Yuhua demanding payment of goods and liquidated damages. The case is being executed. 22. Due to contract disputes Hong Kong Konka
87Konka Group Co. Ltd. Annual Report 2023
Communication Technology Co. Ltd. a subsidiary of the Company sued Hong Kong Junxing Electronics International Co. Ltd. Zeng Jiankai and
Zhong Yuhua demanding payment of goods and liquidated damages and the case is being executed.The following cases have been disclosed in current announcements and periodic reports and are currently in trial. Details of these cases can be found
in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No. 2020-97) and
the Announcement on Accumulated Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) and the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89) the Announcement on Accumulative Lawsuits and
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37) the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) and the Company's periodic reports: 1. The customer of Hong Kong Konka H-BUSTER SAO PAULO
INDUSTRIAE COMERCIO S.A (Brazil) was insolvent and obtained the approval of the judicial reorganization application of Cotia Third Civil
Court of the Court of Sao Paulo Brazil in May 2013. As the creditor of H-BUSTER Hong Kong Konka filed the debt declaration documents and in
August 2014 the amount confirmed of debt was USD2.78 million. 2. Because of a dispute over an agency agreement the Company's subsidiary
Henan Frestec Refrigeration Appliance Co. Ltd. sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd.Lin Yuanqin Huang Ruirong Jiangsu Huadong Hardware Zone Co. Ltd. and Chuangfu Commerce & Trade Plaza Real Estate Development
(Huizhou) Co. Ltd. requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority
shall be given to the payment for the secured assets and the case was heard in the second trial; 3. In view of a dispute arising from a commission
contract Shenzhen Konka Pengrun Technology & Industry Co. Ltd. a subsidiary of the Company has instituted legal proceedings against Guang’an
Ouchishi Electronic Technology Co. Ltd. Guan Hongshao Huaying Gaoke De Electronic Technology Co. Ltd. Huaying Gaoke Long Electronic
Technology Co. Ltd. Guizhou Jiaguida Technology Co. Ltd. Sichuan Hongrongyuan Property Co. Ltd. Du Xinyu Lin Bolong and Wang
Shisheng seeking an order for the defendants to pay the purchase price and claiming damages for breach of contract; 4. Due to a dispute arising from
a guarantee contract Hong Kong Konka Limited a subsidiary of the Company has initiated legal proceedings against Xu Xiang Zheng Baoyao Ke
Hanhua and Shenzhen Jinzhong Industry Co. Ltd. seeking an order for the defendants to assume guarantee liability and the case has been closed; 5
As a result of a dispute arising from an international sale of goods contract Jiaxin Technology Co. Ltd. a subsidiary of the Company has initiated
legal proceedings against Dingxin Electronic Technology (Hong Kong) Co. Ltd. Chen Wenhuan and Chen Baohong seeking an order for the
defendants to pay for the goods and claiming damages for breach of contract; 6. Due to a dispute arising from an installment purchase contract Wu
Rong has instituted legal proceedings against the Company and its subsidiary Shenzhen Konka Electronics Technology Co. Ltd. seeking an order
for the payment of the purchase price and overdue payment interest to the plaintiff and the case is being heard in the second instance; 7. As a result of
a dispute arising from a contract Shenzhen Oriental Entrepreneurship Investment Co. Ltd. has initiated legal proceedings against the Company
seeking an order for the payment of the repurchase amount and claiming damages for breach of contract. 8. As a result of a dispute arising from a
third-party objection to execution Konka Huanjia Environmental Technology Co. Ltd. a subsidiary of the Company has instituted legal proceedings
against Fuxin Bank Co. Ltd. and Huanjia Group Co. Ltd. seeking an order from the court to affirm the plaintiff’s ownership of the goods and to
exclude the defendant’s execution and the case is reheard and in the first instance. 9. As a result of a dispute arising from a third-party objection to
execution Konka Huanjia Environmental Technology Co. Ltd. a subsidiary of the Company has instituted legal proceedings against Fuxin Bank
Co. Ltd. and Dalian Jinjia Materials Recycling Co. Ltd. seeking an order from the court to affirm the plaintiff’s ownership of the goods and to
exclude the defendant’s execution and the case is reheard and in the first instance. 10. Due to a dispute arising from a third-party objection to
execution Konka Huanjia Environmental Technology Co. Ltd. a subsidiary of the Company has instituted legal proceedings against Fuxin Bank
Co. Ltd. Dalian Jinkaisxuan Renewable Resource Acquisition Chain Co. Ltd. Dalian Yingtai Paper Co. Ltd. Dalian Zhanhong Renewable
Resource Recycling Co. Ltd. and Wang Jinping seeking an order from the court to affirm the plaintiff’s ownership of the goods and to exclude the
defendant’s execution and the case is reheard and in the first instance. 11. Due to a contractual dispute Shenzhen Konka Unifortune Technology Co.Ltd. a subsidiary of the Company filed a lawsuit against Shenzhen Junxing Communication Technology Co. Ltd. Gumei Electronics (Hongkong)
Technology Limited Shenzhen Hongxingfengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Zeng Jiankai
Zhang Zhenyu Herewin Technology Group (HK) Co. Ltd. Zhang Lixia Anhui Baolin Industrial Co. Ltd. Zeng Qingpeng and Zhong Yuhua to
return the payment for goods and pay the corresponding liquidated damages. 12. Due to a purchase and sales contract the Company’s subsidiary
Konka Huanjia Environmental Technology Co. Ltd. appealed against Xu Jianhua and Guangxi BG New Materials Co. Ltd. to request the court to
88Konka Group Co. Ltd. Annual Report 2023
refuse Xu Jianhua's all claims and request Guangxi BG New Materials Co. Ltd. to make payment for goods and pay liquidated damages and the case
is reheard and in the first instance. 13. Due to a dispute over an equity transfer agreement the Company filed a lawsuit against Beijing
Langruihaoteng Technology Development Co. Ltd. Beijing Beida Jade Bird Security System Engineering Technical Co. Ltd. and Beijing
Jingruihaoteng Technology Development Co. Ltd. seeking the final payment of the equity transfer and the case was won in first instance the
judgment has entered into force and the application for enforcement is in progress. 14. Due to a dispute over the cancellation of creditor's rights the
Company’s subsidiary Anhui Konka Electronic Co. Ltd. filed a lawsuit against Wu Rong and Makena Electronic (Shenzhen) Co. Ltd. seeking for
the cancellation of the Agreement on the Transfer of Creditor's Rights and the relevant supplemental agreement previously signed by the defendants
and the case is being heard in second instance. 15. Due to a purchase and sales contract Sichuan Shuwu Guangrun Logistics Co. Ltd. filed a lawsuit
against the Company’s subsidiary Dongguan Konka Electronic Co. Ltd. requesting the latter to make payment for goods and pay liquidated damages.
16. Due to a dispute over bankruptcy Xinxiang Jiahui Dakeluo Crafts Products Co. Ltd. filed a lawsuit against the Company’s subsidiary Henan
Frestec Refrigeration Appliance Co. Ltd. requesting a confirmation that the period-end excess VAT paid that had been returned by the tax authority
to the defendant should have been other properties to be distributed. 17. Due to a purchase and sales contract of international goods Micro Crystal
Transfer Group Ltd. filed a lawsuit against the Company’s subsidiary Chongqing Konka Optoelectronic Technology Research Institute Co. Ltd.requesting the latter to make payment for goods and pay liquidated damages. 18. Due to a contractual dispute the Company filed a lawsuit against
Zhu Xinming Leng Sumin Gongqingcheng Jinzhuanrong Investment Management Partnership (Limited Partnership) and Gongqingcheng Xinrui
Investment Management Partnership (Limited Partnership) requesting them to pay the performance compensation.XII Punishments and Rectifications
√ Applicable □ Not applicable
Type of
Disclosure Disclosure
Name Type Reason punishme Conclusion (if any)
date index
nt
Therefore the Shenzhen
Some purchase and sale
Bureau of the China Securities
transactions conducted
Regulatory Commission
by the Company's
(CSRC Shenzhen) decided to
relevant subsidiaries
take a regulatory measure
from 2020 to 2021 did
requesting the Company to
not have commercial
make a correction in
Konka substance the
Charging accordance with Item 1 4 January
Group Co. Other recognition of income
correction Article 52 of the Measures for 2023
Ltd. and costs of which was
the Administration of
short of evidence.Information Disclosure by
Consequently financial
Listed Companies and Article
data disclosed in the http://www.cni
21 of the Rules for the On-site
corresponding periodic nfo.com.cn/new
Inspection of Listed
report of the Company /index
Companies (ZH.J.H.G.G.were inaccurate.[2022] No. 21).(I) Long-term assets Pursuant to Article 51 and
impairment tests were Article 52 of the Measures for
not prudent. The Charging the Administration of
Konka Company's subsidiary correction Information Disclosure by 13 July
Group Co. Other Jiangxi Konka New and Listed Companies and Article 2023
Ltd. Material Technology regulatory 21 of the Rules for the On-site
Co. Ltd. and its interview Inspection of Listed
affiliated enterprises did Companies (Z.J.H.G.G. [2022]
not exercise due No. 21) the Shenzhen Bureau
89Konka Group Co. Ltd. Annual Report 2023
diligence in the long- of the China Securities
term assets impairment Regulatory Commission
tests for 2021. (II) decided to take regulatory
Information disclosure measures including ordering
was not standardized. In the Company to make
the Company's 2022 corrections and conducting
results forecast regulatory interviews with
information about the relevant personnel of the
reasons for the year-on- Company.year decline in revenue
from consumer
electronics was not
completely disclosed.Some inventory of the
Company's related
subsidiaries was seized
in 2019 but such
limitation was not
disclosed in the financial
statements' notes until
the 2022 annual report.Information on rectification
√ Applicable □ Not applicable
As of the end of the Reporting Period the Company had completed all remediation tasks in line
with the relevant regulatory requirements. For details see the Report on the Remediation Based on
the Corrective Measures of the Shenzhen Bureau of the China Securities Regulatory Commission
against the Company (Announcement No.: 2023-09) and the Report on the Remediation Based on
the Corrective Measures of the Shenzhen Bureau of the China Securities Regulatory Commission
against the Company (Announcement No.: 2023-51) disclosed by the Company on
http://www.cninfo.com.cn/new/index respectively on 25 February 2023 and 11 August 2023.XIII Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□Applicable √ Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
Rel As % Appro
Type Total Over
Obtai
atio Prici of ved nable
Index
Relate nshi of Specific ng Trans value
the Metho
total transa appro d of marke Disclo
to
d p trans transaction prin action (RMB value ction t price sure
disclo
party wit actio ciple price ’0000
ved settle
of all line sed
n ) line or ment
for date
h same- (RMB infornot same-
the type ’0000 type matio
90Konka Group Co. Ltd. Annual Report 2023
Co transa ) transa n
mpa ctions ctions
ny
Und
Purc
er
OCT hase
Enter the of
prises sam Property
Co. com manageme Nege
Ltd nt otiat Marke 1134 1.17% 1000
28
modi
and actu utilities ed t price 3.52 0
Not Cash N/A March
ties office price 2023its al
subsid and leases
iaries cont servi
roll http://
ces www.er cninfo.com.Und cn/ne
Sales w/inder
OCT exof
Enter the Sale of
prises sam good TVs
Co. e s and intelligent
Neg
Ltd terminals otiat Marke 7802. 2000
28
actu serviand etc. and ed t price 34
0.76% 0 Not Cash N/A March2023
its al ces relevant
price
subsid
iaries cont
services
roll
er
Total -- -- 1914 30005.86 -- 0 -- -- -- -- --
Large-amount sales return in detail N/A
Give the actual situation in the The Company has published the Forecasting Public Notice on Routine Related-party
Reporting Period (if any) where an Transaction for Y2023 on Securities Times Shanghai Securities News and China
estimate had been made for the total Securities Journal as well as the Internet website designated by CSRC
value of continuing related-party http://http://www.cninfo.com.cn/new/index on 28 March 2023. In the Reporting Period
transactions by type to occur in the the basis for pricing transaction price transaction amount and settlement methods of raw
Reporting Period materials purchased by the Company were basically in accordance with the forecast. Thetotal amount incurred was RMB191458600.Reason for any significant
difference between the transaction
price and the market reference price N/A
(if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□Applicable √ Not applicable
91Konka Group Co. Ltd. Annual Report 2023
No such cases in the Reporting Period.
4. Credits and Liabilities with Related Parties
√ Applicable □ Not applicable
Indicate by tick mark whether there were any credits and liabilities with related parties for
non-operating purposes.√ Yes □ No
No credits receivable with related parties
Liabilities payable to related parties:
Increased Recovered Interest in
Beginning in the in the the Ending
Related Related Forming balance Reporting Reporting Reporting balance
party relationship reason (RMB’000 Period Period Interest rate Period (RMB’000
0) (RMB’000 (RMB’000 (RMB’000 0)
0)0)0)
The 131091.00 0.00 50000.00 3.45% 4551.91 81091.00
OCT
Enterprises Controlling
Company
Co. Ltd. shareholder
applies 50000.00 0.00 0.00 3.45% 1748.96 50000.00
entrusted
loan to it 70000.00 0.00 0.00 3.45% 2448.54 70000.00
Effects of liabilities with related parties
on the Company’s operating results and The Company applies entrusted loan from OCT Enterprises Co. Ltd. which meets the
financial conditions needs of the company's existing business development and reduces the financing cost.
5. Transactions with Related Finance Companies
□Applicable √ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in any
other finance business with any related finance company or any other related parties.
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make deposits receive loans or credit
from and was not involved in any other finance business with any related parties.
7. Other Major Related-Party Transactions
(1) Guarantee Limits for Affiliated Companies: The 7th meeting of the 10th Board of Directors on
24 February 2023 and the First Extraordinary General Meeting of Shareholders in 2023 on 13
92Konka Group Co. Ltd. Annual Report 2023
March 2023 passed the proposal Providing Guarantee Limits for Chuzhou Kangjin Health Industry
Development Co. Ltd. The Company provided a credit guarantee limit of RMB259.7 million for
Chuzhou Kangjin Health Industry Development Co. Ltd. according to its shareholding proportion
with a guarantee limit valid for fourteen years. This credit guarantee limit was used to apply for
loans from banks by Chuzhou Kangjin Health Industry Development Co. Ltd. Other shareholders
of Chuzhou Kangjin Health Industry Development Co. Ltd. will provide guarantees for it based on
their respective shareholding proportions together with the Company.
(2) Application for Comprehensive Credit Limit from China Everbright Bank Co. Ltd.: The 7th
meeting of the 10th Board of Directors on 24 February 2023 approved the proposal Application for
Comprehensive Credit Limit from China Everbright Bank Co. Ltd. The Company applied for a
comprehensive credit limit not exceeding RMB1.5 billion from China Everbright Bank Co. Ltd. to
meet its daily operating capital needs. During the reporting period the ongoing credit amount of the
Company with China Everbright Bank Co. Ltd. was RMB1 billion.
(3) Counter-guarantees for Bank Credit Facilities Application: The 7th meeting of the 10th Board of
Directors on 24 February 2023 and the First Extraordinary General Meeting of Shareholders in
2023 on 13 March 2023 approved the proposal Providing Counter-guarantees for Bank Credit
Facilities Application by the Company. To reduce financing costs Overseas Chinese Town
Holdings Company (OCT Group) provided a guarantee for the Company’s bank credit facilities
application not exceeding RMB1 billion. In turn the Company offered counter-guarantees to OCT
Group of an equal amount and term with a counter-guarantee amount not exceeding RMB1 billion
and a guarantee limit valid for a maximum of three years.
(4) The Company's non-public issuance of corporate bonds and the provision of counter-guarantees
to OCT Group: At the 15th meeting of the 10th Board of Directors held on 10 August 2023 and the
second extraordinary general meeting of shareholders in 2023 held on 28 August 2023 the proposal
on Plan for Non-public Issuance of Corporate Bonds by the Company was deliberated and passed.To reduce financing costs OCT Group intends to provide a full unconditional and irrevocable joint
liability guarantee for the Company's non-public issuance of corporate bonds not exceeding
RMB2.3 billion. Simultaneously the Company plans to provide an equivalent and concurrent credit
counter-guarantee to OCT Group with the counter-guarantee amount not exceeding RMB2.3 billion
and the guarantee period not exceeding 5 years.Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on the Provision of Guarantee Line for Joint Stock Company http://www.cninfo.com.c
25 February 2023
and the Related-party Transaction n/new/index
93Konka Group Co. Ltd. Annual Report 2023
Announcement on the Application to China Everbright Bank for
25 February 2023
Comprehensive Credit Line & the Related-party Transaction
Announcement on the Provision of Counter-guarantee for the Application to
25 February 2023
Bank for Credit Line & the Related-party Transaction
Announcement on Plan for Non-public Issuance of Corporate Bonds by the
11 August 2023
Company and Provision of Counter-Guarantee to OCT Group
XV Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
√ Applicable □ Not applicable
Note to leases
No significant leases in the Reporting Period.The rent of Konka Development Building has received RMB67229722.75 in the Reporting
Period.The project bringing about gains or losses as over 10% of total profit in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
√ Applicable □ Not applicable
Unit: RMB'0000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
94Konka Group Co. Ltd. Annual Report 2023
Havin Guarant
Disclosure Actual Type Collat Counter Term
Line of Actual g ee for a
Obligor date of the guarant of eral guarant ofguarante occurren expire related
guarantee line ee guara (if ee (if guara
e ce date d or party or
announcement amount ntee any) any) ntee
not not
30 Joint-
Septemb 3747 liabilit No Not Twoyears Not Noter 2022 y
23 Joint- One
Novemb 2748 liabilit No Not yearand a Not Noter 2022 y half
22 May Joint-
2023 1499 liabilit No Not
One
year Not Noty
10 May Joint-3747 liabilit No Not One2023 y year
Not Not
Econ
Technology 28 April 2022 50000 5 July
Joint-
2023 4997 liabilit No Not
One
year Not Noty
19 July Joint- One
2023 2498 liabilit No Not year Not Noty
28 Joint-
August 999 liabilit No Not Oneyear Not Not2023 y
29 Joint-
Decemb 1374 liabilit No Not One
er 2023 y year
Not Not
28 Joint-
Decemb 2498 liabilit No Not One Not Not
er 2023 y year
Foshan Pearl
River Media
Creative Park 17 May Joint- Six
Culture 28 April 2022 1372 2022 980 liabilit No Not years Not Not
Development y
Co. Ltd.Jiangxi Xinxin
Jian’an 12 Joint-
Engineering 10000 Decemb 10000 liabilit No Not Not Not
Co. Ltd. er 2016 y
Jiangxi 12 Joint-
Zhongyi 10000 Decemb 10000 liabilit No Not Not Not
Decoration er 2016 y
Materials Co.
95Konka Group Co. Ltd. Annual Report 2023
Ltd.Jiangxi Shanshi
Technological 12 Joint-
Development 10000 Decemb 10000 liabilit No Not Not Not
Co. Ltd. er 2016 y
8 Joint-
Septemb 60000 liabilit No Not Threeyears Not Yeser 2022 y
18 Joint-
October 60000 liabilit No Not Three Not Yes
30 March 2022 y
years
OCT Group 2022 and 25 370000
February 2023 22 Joint-
Septemb 50000 liabilit No Not Three Not Yes
er 2023 y years
13 Joint-
Decemb 30000 liabilit No Not Threeyears Not Yeser 2023 y
Total approved line for such
guarantees in the Reporting Period 361770 Total actual amount of such guarantees in the
(A1) Reporting Period (A2)
97612
Total approved line for such
guarantees at the end of the 1083642 Total actual balance of such guarantees at the endof the Reporting Period (A4) 255087Reporting Period (A3)
Guarantees provided between the Company and subsidiaries
Disclosure Actua Guaran
date of the Line l Colla Counter Term tee for
Having
Obligor guarantee of Actual guara Type of teral guarante of aexpired
line guaran occurrence date ntee guarantee (if e (if guarant related
or not
announce tee amou any) any) ee party or
ment nt not
2 June 2022 3000 Joint- Twoliability No Not years Not Not
6 February 1000 Joint-
2023 0 liability No Not
One
year Not Not
Anhui 25 14 August 5000 Joint- One
Tongchua February 5500 2023 liability
No Not year Not Not
ng 2023 0
19 October 1000 Joint- One
2023 0 liability No Not year Not Not
One
20 November Joint- year
2023 3000 liability No Not and a Not Not
half
96Konka Group Co. Ltd. Annual Report 2023
28 April 19 January 4000 Joint- No Not One Not Not
Boluo 2022 and
2023 liability year
25 1250Precision February 00 25 August 4500 Joint-2023 2023 liability No Not
Three
years Not Not
One
24 November 8500 Joint- yearElectroni 25 2022 liability
No Not and a Not Not
cs
Technolo February
1000 half
00
gy 2023
26 September 5000 Joint- One
2023 0 liability No Not year Not Not
24 March 24 March 2023 5000 Joint- No Not One Not Not
Donggua 2021 and
liability year
9000
n Konka 25February 0
23 June 2021 8000 Joint- No Not Ten2023 0 liability years Not Not
10 March 2022 990 Joint- No Other Twoliability sharehol years Not Not
der of
Jiangxi
Konka
provides
a
Jiangxi 31 counter
Konka October 69902018 guarante15 August 6000 Joint- e for the One2023 liability No year Not NotCompan
y for
49% of
the
guarante
e line
Other
sharehol
der of
Xinfeng
Microcr
ystalline
provides
Xinfeng
Microcry 30 March 2500
a
30 June 2023 7200 Joint- No counter One
stalline 2019 0 liability guarante year
Not Not
e for the
Compan
y for
49% of
the
guarante
e line
Other
Jiangxi sharehol
High
Transpare 30 March 4500
der of
2019 0 10 March 2022 990
Joint- Two
nt liability
No Jiangxi years Not Not
Substrate HighTranspa
rent
97Konka Group Co. Ltd. Annual Report 2023
Substrat
e
provides
a
counter
guarante
e for the
Compan
y for
49% of
the
guarante
e line
24 March
Sichuan 2021 and25 2000Konka 0 23 May 2023 4000
Joint- Three
February liability
No No years Not Not
2023
Ningbo 2 March 2023 6000 Joint- No No One
Khr liability year
Not Not
Electric 28 April 1200
Applianc 2022 0 Joint- One
e 13 July 2023 6000 liability No No year Not Not
Other
sharehol
der of
Yibin
Kangrun
provides
a
Yibin 24October 1000 13 November 1000 Joint- counter FourKangrun 2020 0 2020 0 liability
No guarante years Not Not
e for the
Compan
y for
33% of
the
guarante
e line
Telecom
municatio
n 28 April 20002022 0 23 July 2023 7500
Joint-
liability No No
One
year Not NotTechnolo
gy
10 August 1021 Joint- No Other Ten2021 6 liability years Not Notsharehol
der of
29 October Joint- Anhui Five
2021 7000 liability No Konka years Not Not
Anhui 28 April 1100 provides
Konka 2022 00 a
24 October 7000 Joint- counter Four2022 liability No guarante years
Not Not
e for the
19 September Compan
20227000
Joint- Two
liability No y for22% of years
Not Not
98Konka Group Co. Ltd. Annual Report 2023
the
25 June 2023 5000 Joint- No guarante Fiveliability years Not Note line
31 August Joint- One
2023 5500 liability No year Not Not
22 September 1800 Joint- One
2023 0 liability No year Not Not
One
14 September
20225000
Joint- year
liability No and a Not Not
half
One
Konka 24 March 5000 22 December 5000 Joint- No No yearCircuit 2021 0 2022 liability and a Not Not
half
Three
19 July 2023 1000 Joint- No and a0 liability half Not Not
years
28 April
Mobile 2022 and
Interconn 25 1500 10 November 7000 Joint- No No One0 2023 liability year Not Notection February
2023
Liaoyang 24 March
Kangshu 2021 and 2000 Joint- One
n 28 April 0
6 January 2023 5000 liability No No year Not Not
2022
Konka 12 July 2021
2000 Joint- Five
0 liability No No years Not Not
Xinyun 24 March 3000
Semicond 2021 0
uctor 26 May 2022 6000 Joint- Twoliability No No years Not Not
Yibin
Konka 24 March 1000 Joint- One
Intelligen 2021 0 23 May 2023 980 liability No No year Not Not
t
Chongqin 24 March 5560 13 December 3800 Joint- Fifteen
g Konka 2021 0 2022 0 liability No No years Not Not
Frestec
Smart 28 April 12242022 0 6 July 2022
1020 Joint- Eight
0 liability No No years Not NotHome
Konka
Soft 28 April 1900 19 December Joint- Four
Electroni 2022 0 2022 975 liability No No years Not Not
c
99Konka Group Co. Ltd. Annual Report 2023
Xi'an
Kanghon
g
Technolo 25
gy February 30000 26 May 2023
3000 Joint- Ten
0 liability No No years Not NotIndustry 2023
Develop
ment Co.Ltd.Total approved line for such guarantees in the Reporting Total actual amount of such
Period (B1) 275845 guarantees in the Reporting Period 209680(B2)
Total approved line for such guarantees at the end of the Total actual balance of such
Reporting Period (B3) 1076885 guarantees at the end of the 429551Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure Actua Guaran
date of the Line l Colla Counter Term tee for
Having
Obligor guarantee of Actual guara Type of teral guarante of aexpired
line guaran occurrence date ntee guarantee (if e (if guarant related
or not
announce tee amou any) any) ee party or
ment nt not
N/A
Total approved line for such guarantees in the Reporting 1530 Total actual amount of such guaranteesPeriod (C1) in the Reporting Period (C2) 0
Total approved line for such guarantees at the end of the Total actual balance of such guarantees
Reporting Period (C3) 1530 at the end of the Reporting Period (C4) 0
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period 639145 Total actual guarantee amount in the(A1+B1+C1) Reporting Period (A2+B2+C2) 307292
Total approved guarantee line at the end of the Reporting Total actual guarantee balance at the
Period (A3+B3+C3) 2162057 end of the Reporting Period 684638(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the
Company’s net assets 121%
Of which:
Balance of guarantees provided for shareholders actual controller and their related parties (D) 200000
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 684638
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 402418
Total of the three amounts above (D+E+F) 684638
100Konka Group Co. Ltd. Annual Report 2023
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) N/A
Provision of external guarantees in breach of the prescribed procedures (if any) N/A
Compound guarantees:
None
3. Cash Entrusted forWealth Management
(1) Cash Entrusted forWealth Management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB’0000
Unrecovered
Type Funding source Amount Undue amount Unrecovered overdue amountoverdue amount with provision for
impairment
Trust financial
products Self-owned 10000.00 10000.00 0 0
Total 10000.00 10000.00 0 0
High-risk entrusted wealth management with significant single amount or low security and poor
liquidity:
□ Applicable √ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which
may cause impairment for entrusted wealth management
□ Applicable √ Not applicable
(2) Entrusted Loans
□Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Major Contracts
□Applicable √ Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
101Konka Group Co. Ltd. Annual Report 2023
√ Applicable □ Not applicable
(I) Corporate bonds issue: Currently as for the non-public offering of corporate bonds of RMB2.3
billion RMB1.5 billion of corporate bonds have been issued on 29 January 2024 and the rest of
corporate bonds of RMB0.8 billion have been issed on 18 March 2024.(II) Initiation and establishment of funds: The total scale of the Oriental-Konka Industry M&A Fund
was RMB1001000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500
million accounting for 49.95% of the total units. By the date of this report Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB487344000. The fund invested in Jiangxi
Yahua Electronic Materials Co. Ltd. Potron Technology Co. Ltd. etc.The total scale of the Kunshan-CITIC-Konka Emerging Industry Development Investment Fund
was RMB1006000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500
million accounting for 49.70% of the total units. By the date of this report Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB195.21 million. The fund invested in
UNIONTECH Hercules Microsystems (HME) etc.The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was RMB500
million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB200 million accounting
for 40% of the total units. By the date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB200000000. The fund invested in Feidi Technology (Shenzhen) Co. Ltd.Allystar Technology (Shenzhen) Co. Ltd. etc.The total scale of Yancheng Kangyan Industry Investment Fun was RMB3000 million. Shenzhen
Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management
Co. Ltd. contributed RMB1201500000 accounting for 40.05% of the total units. By the date of
this report Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity
Investment Management Co. Ltd. have contributed RMB217.36 million. The fund invested in
Anhui Zhongdian Xingfa and Xinlong Co. Ltd. Chongqing E2info Technology Co. Ltd. etc.The total scale of Yibin Kanghui Electronic Information Industry Equity Investment Fund was
RMB1002000000. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital
Equity Investment Management Co. Ltd. contributed RMB401 million accounting for 40.02% of
the total units. By the issuance date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB104 million. The fund invested in Chongqing E2info Technology Co. Ltd. etc.The total scale of Chongqing Kangxin Equity Investment Fund was RMB2 billion. Shenzhen
Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management
Co. Ltd. contributed RMB1 billion accounting for 50% of the total units. By the date of this report
102Konka Group Co. Ltd. Annual Report 2023
Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment
Management Co. Ltd. have contributed RMB148248300. The fund invested in Shanghai VEIGLO
Information System Co. Ltd. Jiangxi Taide Wisdom Technology Co. Ltd. etc.(III) Disclosure index of significant information
Announce
ment No. Date Title Page on newspaper
Website
link
Announcement on Receiving the Shenzhen Bureau
2023-01 4 January 2023 of the China Securities Regulatory Commission'sSecurities Daily B108 Shanghai SecuritiesDecision to Take Corrective Measures againstNews 116 etc.
Konka Group Co. Ltd.
2023-02 17 January 2023 Announcement on Resolutions of the Sixth MeetingSecurities Daily B31 Shanghai Securitiesof the Tenth Board of Directors News 17 etc.
2023-03 17 January 2023 Announcement on Proposed Sale of Some of EquitySecurities Daily B31 Shanghai Securitiesin Chutian Dragon Co. Ltd. News 17 etc.
Announcement on Proposed Sale of Some of Equity
2023-04 17 January 2023 in Wuhan Tianyuan Environmental Protection Co.Securities Daily B26 Shanghai Securities
Ltd. News 17 etc.
2023-05 18 January 2023 Announcement on Progress in the Provision ofSecurities Daily B75 Shanghai SecuritiesExternal Guarantee News 81 etc.
2023-06 31 January 2023 2022 Result Forecast Securities Daily B143 Shanghai SecuritiesNews 148 etc.
http://w
2023-07 25 February Announcement on Resolutions of the SeventhSecurities Daily B57 Shanghai Securities
ww.cni
2023 Meeting of the Tenth Board of Directors News 41 etc. nfo.com.cn/new
/index
2023-08 25 February Announcement on Resolutions of the FourthSecurities Daily B58 Shanghai Securities2023 Meeting of the Tenth Board of Supervisors News 41 etc.
Report on the Remediation Based on the Corrective
2023-09 25 February Measures of the Shenzhen Bureau of the ChinaSecurities Daily B58 Shanghai Securities2023 Securities Regulatory Commission against theNews 41 etc.
Company
2023-10 25 February2023 Announcement on External Guarantee
Securities Daily B57 Shanghai Securities
News 41 etc.
25 February Announcement on Providing Security Limit to and2023-11 2023 Conducting Connected Transaction with
Securities Daily B57 Shanghai Securities
Shareholding Company News 41 etc.
2023-12 25 February Notice on Convening 2023 First ExtraordinarySecurities Daily B57 Shanghai Securities2023 General Meeting News 41 etc.
2023-13 25 February Announcement on Providing Financial AssistanceSecurities Daily B58 Shanghai Securities2023 to Shandong Econ Technology Co. Ltd. atNews 41 etc.
103Konka Group Co. Ltd. Annual Report 2023
Shareholding Ratio
2023-14 25 February
Announcement on Applying for a Comprehensive
2023 Line of Credit to and Conducting Connected
Securities Daily B57 Shanghai Securities
Transactions with China Everbright Bank News 41 etc.
25 February Announcement on Providing Counter Guarantee2023-15 and Conducting Connected Transaction forSecurities Daily B50 Shanghai Securities2023 Applying for Bank Credit Business News 41 etc.
2023-16 25 February Announcement on Progress of Guarantee ProvisionSecurities Daily B58 Shanghai Securities2023 for Wholly-owned Company News 41 etc.
2023-17 14 March 2023 Announcement on Resolutions of 2023 FirstSecurities Daily B49 Shanghai SecuritiesExtraordinary General Meeting News 41 etc.
2023-18 28 March 2023 2022 Annual Report Securities Daily B178 Shanghai SecuritiesNews 177 etc.
2023-19 28 March 2023 Abstract of 2022 Annual Report Securities Daily B178 Shanghai SecuritiesNews 177 etc.
2023-20 28 March 2023 Announcement on Resolutions of the EighthSecurities Daily B178 Shanghai SecuritiesMeeting of the Tenth Board of Directors News 177 etc.
2023-21 28 March 2023 Announcement on Resolutions of the Fifth MeetingSecurities Daily B178 Shanghai Securitiesof the Tenth Board of Supervisors News 177 etc.
2023-22 28 March 2023 Announcement on Expected Routine ConnectedSecurities Daily B178 Shanghai SecuritiesTransactions in 2023 News 177 etc.
2023-23 28 March 2023 Announcement on Plan of Profit Distribution forSecurities Daily B178 Shanghai Securities2022 News 177 etc.
2023-24 28 March 2023 Announcement on Accrual of Asset ImpairmentSecurities Daily B178 Shanghai SecuritiesReserves for 2022 News 177 etc.
2023-25 4 April 2023 Announcement on Change in Accounting Method ofSecurities Daily B90 Shanghai SecuritiesShareholding Company News 65 etc.
2023-26 4 April 2023 Announcement on Proposed Sale of Some of EquitySecurities Daily B90 Shanghai Securitiesin Chutian Dragon Co. Ltd. News 65 etc.
2023-27 4 April 2023 Announcement on Resolutions of the Ninth MeetingSecurities Daily B90 Shanghai Securitiesof the Tenth Board of Directors News 65 etc.
2023-28 4 April 2023 Announcement on Holding 2022 Online ResultSecurities Daily B90 Shanghai SecuritiesRelease News 65 etc.
2023-29 29 April 2023 2023 Q1 Report Securities Daily B1204 ShanghaiSecurities News 988 etc.
2023-30 29 April 2023 Announcement on Progress of Guarantee ProvisionSecurities Daily B1204 Shanghaifor Wholly-owned Company Securities News 988 etc.
104Konka Group Co. Ltd. Annual Report 2023
2023-31 29 April 2023 Announcement on Some Accounting PolicySecurities Daily B1204 ShanghaiChanges Securities News 988 etc.
Announcement on the Postponement of Reply to
2023-32 13 May 2023 Inquiry Letter on 2022 Annual Report fromSecurities Daily B128 Shanghai Securities
Shenzhen Stock Exchange News 12 etc.
2023-33 19 May 2023 Announcement on Resolutions of 11th Meeting ofSecurities Daily B21 Shanghai Securitiesthe Tenth Board of Directors News 36 etc.
2023-34 20 May 2023 Announcement on Reply to Inquiry Letter on 2022Securities Daily B173-B174 ShanghaiAnnual Report from Shenzhen Stock Exchange Securities News 161 etc.
2023-35 27 May 2023 Announcement on Resolutions of 12th Meeting ofSecurities Daily B42 Shanghai Securitiesthe Tenth Board of Directors News 100 etc.
2023-36 27 May 2023 Notice on Convening 2022 Shareholders' GeneralSecurities Daily B42 Shanghai SecuritiesMeeting News 100 etc.
2023-37 1 June 2023 Announcement on Accumulative Lawsuits andSecurities Daily B32 Shanghai SecuritiesArbitrations News 41 etc.
2023-38 20 June 2023 Announcement on Resolutions of 2022Securities Daily B100 Shanghai SecuritiesShareholders' General Meeting News 57 etc.
2023-39 22 June 2023 Announcement on Accumulative Lawsuits andSecurities Daily B93 Shanghai SecuritiesArbitrations News 73 etc.
2023-40 22 June 2023 Announcement on Progress in the Provision ofSecurities Daily B93 Shanghai SecuritiesExternal Guarantee News 73 etc.
Announcement on the Extension of outstanding
2023-41 11 July 2023 maturities of Dongfang Jiakang Industry M&ASecurities Daily B39 Shanghai Securities
Fund News 11 etc.
2023-42 11 July 2023 Announcement on Resolutions of 14th Meeting ofSecurities Daily B39 Shanghai Securitiesthe Tenth Board of Directors News 11 etc.
Announcement on Receiving the Shenzhen Bureau
2023-43 13 July 2023 of the China Securities Regulatory Commission'sSecurities Daily B82 Shanghai SecuritiesDecision to Take Administrative SupervisionNews 12 etc.
Measures
2023-44 15 July 2023 2023 Interim Results Forecast Securities Daily B4 Shanghai SecuritiesNews 132 etc.
Announcement on Providing Financial Assistance
2023-45 11 August 2023 to Dongguan Guankang Yuhong InvestmentSecurities Daily B49 Shanghai Securities
Company Limited According to Shareholding Ratio News 73 etc.Announcement on Appointment of Audit Firms for
2023-46 11 August 2023 2023 Financial Statements and Internal ControlSecurities Daily B49 Shanghai Securities
Audit News 73 etc.
105Konka Group Co. Ltd. Annual Report 2023
2023-47 11 August 2023 Notice on Convening 2023 Second ExtraordinarySecurities Daily B49 Shanghai SecuritiesGeneral Meeting News 73 etc.
2023-48 11 August 2023 Announcement on Resolutions of 15th Meeting ofSecurities Daily B50 Shanghai Securitiesthe Tenth Board of Directors News 73 etc.
2023-49 11 August 2023 Announcement on the Resolutions of the 7thSecurities Daily B50 Shanghai SecuritiesMeeting of the 10th Board of Supervisors News 73 etc.
Announcement on Issuing the Plan for the
2023-50 11 August 2023 Company's Private Offering of Corporate Bonds andSecurities Daily B49 Shanghai Securities
Providing Counter Guarantee for OCT Group News 73 etc.Report on the Remediation Based on the Corrective
2023-51 11 August 2023 Measures of the Shenzhen Bureau of the ChinaSecurities Daily B49 Shanghai SecuritiesSecurities Regulatory Commission against theNews 73 etc.
Company
2023-52 11 August 2023 Announcement on Progress in the Provision ofSecurities Daily B49 Shanghai SecuritiesExternal Guarantee News 73 etc.
2023-53 28 August 2023 Summary of 2023 Interim Report Securities Daily B66 Shanghai SecuritiesNews 17 etc.
2023-54 28 August 2023 2023 Interim Report Securities Daily B66 Shanghai SecuritiesNews 17 etc.
2023-55 28 August 2023 Announcement on Semi-annual Provision for assetsSecurities Daily B66 Shanghai Securitiesimpairment for 2023 News 17 etc.
2023-56 29 August 2023 Announcement on Resolutions of 2023 SecondSecurities Daily B71 Shanghai SecuritiesExtraordinary General Meeting News 345 etc.
2023-57 15 September Announcement on Progress in the Provision ofSecurities Daily B56 Shanghai Securities2023 External Guarantee News 57 etc.
2023-58 23 September Announcement on Progress of Guarantee ProvisionSecurities Daily B11 Shanghai Securities2023 for Wholly-owned Subsidiaries News 12 etc.
2023-59 31 October 2023 The Third Quarterly Report of 2023 Securities Daily B749 Shanghai SecuritiesNews 20 etc.
2023-60 4 November
Announcement on the Participation in 2023
2023 Shenzhen Online Group Reception Day for Listed
Securities Daily B38 Shanghai Securities
Company Investors News 49 etc.
2023-61 18 November Announcement on Progress of Guarantee ProvisionSecurities Daily B20 Shanghai Securities2023 for Wholly-owned Subsidiaries News 20 etc.
2023-62 18 November
Announcement on the Receipt of SZSE No
2023 Objection Letter for 2023 Corporate Bond Listing
Securities Daily B20 Shanghai Securities
Qualification News 20 etc.
2023-63 28 November Announcement on Overdue Shareholder Loans toSecurities Daily B16 Shanghai Securities
106Konka Group Co. Ltd. Annual Report 2023
2023 Shareholding Companies News 52 etc.
6 December Announcement on Providing Financial Assistance2023-64 to Chuzhou Kangxin Health Industry DevelopmentSecurities Daily B22 Shanghai Securities2023 Company Limited According to Shareholding Ratio News 28 etc.
2023-65 6 December Announcement on Resolutions of 19th Meeting ofSecurities Daily B22 Shanghai Securities2023 the Tenth Board of Directors News 28 etc.
2023-66 6 December Notice on Convening 2023 Third ExtraordinarySecurities Daily B22 Shanghai Securities2023 General Meeting News 28 etc.
2023-67 22 December Announcement on Progress of Guarantee ProvisionSecurities Daily B54 Shanghai Securities2023 for Wholly-owned Subsidiaries News 68 etc.
2023-68 22 December Announcement on Resolutions of 2023 ThirdSecurities Daily B54 Shanghai Securities2023 Extraordinary General Meeting News 68 etc.
2023-69 26 December Announcement on Progress of Guarantee ProvisionSecurities Daily B54 Shanghai Securities2023 for Wholly-owned Subsidiaries News 68 etc.
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
107Konka Group Co. Ltd. Annual Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period(+/-) After
Share
Share s as
s as divide
divide nd
Percenta New nd conve Subtot PercentShares ge (%) issue conve rted Other Shares ages rted from
al (%)
from capita
profit lreserv
es
1. Restricted shares 0 0.00% 0 0.00%
2. Unrestricted shares 2407945408 100.00% 2407945408 100.00%
2.1 RMB-
denominated ordinary 1596593800 66.31% 1596593800 66.31%
shares
2.2 Domestically
listed foreign shares 811351608 33.69% 811351608 33.69%
3. Total shares 2407945408 100.00% 2407945408 100.00%
Reasons for the share changes:
□ Applicable √ Not applicable
Approval of the share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Effects of the share changes on the basic and diluted earnings per share equity per share
attributable to the Company’s ordinary shareholders and other financial indicators of the prior year
and the prior accounting period respectively:
108Konka Group Co. Ltd. Annual Report 2023
□Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to
be disclosed:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
□Applicable √ Not applicable
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable √ Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□Applicable √ Not applicable
3. Existing Staff-Held Shares
□Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of ordinary Number of preferred
Number of shareholders at the Number of preferred
ordinary 84916 month-end prior to 86489 shareholders with
shareholders with resumed
0 voting rights at the month-end 0
shareholders the disclosure of this resumed voting rights (ifany) prior to the disclosure of thisReport Report (if any)
5% or greater shareholders or top 10 shareholders
Share Increase/de Shares in pledge
Nature of holdi Total crease in Restricte marked or frozen
Name of shareholder sharehold ng shares held the d shares Unrestricted
er perce at the shares held
ntage period-end
Reporting held
Period Status Shares
OVERSEAS CHINESE State-
TOWN HOLDINGS owned 21.75% 523746932 0 0 523746932
COMPANY legalperson
CITIC SECURITIES Foreign
BROKERAGE (HONG legal 7.48% 180001110 0 0 180001110
KONG) CO. LTD. person
109Konka Group Co. Ltd. Annual Report 2023
Domestic
WANG JINGFENG natural 2.91% 70000000 -35000000 0 70000000
person
GUOYUAN SECURITIES Foreign
BROKER (HK) CO. LTD. legal 2.48% 59706843 479618 0 59706843person
HOLY TIME GROUP Foreign
LIMITED legal 2.38% 57289100 0 0 57289100person
Foreign
GAOLING FUND L.P. legal 1.88% 45366683 -7434567 0 45366683
person
Foreign
NAMNGAI natural 0.96% 23000000 -19800 0 23000000
person
HONG KONG SECURITIES Foreign
CLEARING COMPANY legal 0.93% 22292686 7154180 0 22292686
LTD. person
CHINA MERCHANTS State-
SECURITIES (HK) ownedlegal 0.82% 19865520 407800 0 19865520LIMITED person
BOCOM INTERNATIONAL Foreign
SECURITIES LIMITED legal 0.78% 18896037 0 0 18896037person
Strategic investor or general legal person
becoming a top-10 ordinary shareholder N/A
due to rights issue (if any) (see note 3)
Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (OCT Group) holds
Related or acting-in-concert parties among 180001110 and 18360000 ordinary shares in the Company respectively through CITIC
the shareholders above Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants Securities (HK)Limited. Happy Bloom Investment Limited and OCT Group are parties acting in concert.Other than that it is unknown whether the other shareholders are related parties or acting-
in-concert parties or not.Explain if any of the shareholders above
was involved in entrusting/being entrusted N/A
with voting rights or waiving voting rights
Special account for share repurchases (if
any) among the top 10 shareholders (see None
note 10)
Top 10 unrestricted shareholders
Name of shareholder Unrestricted shares held at the Shares by type
110Konka Group Co. Ltd. Annual Report 2023
period-end
Type Shares
OVERSEAS CHINESE TOWN
HOLDINGS COMPANY 523746932
RMB-denominated ordinary
stock 523746932
CITIC SECURITIES BROKERAGE 180001110 Domestically listed foreign(HONG KONG) CO. LTD. stock 180001110
WANG JINGFENG 70000000 RMB-denominated ordinarystock 70000000
GUOYUAN SECURITIES BROKER (HK) 59706843 Domestically listed foreignCO. LTD. stock 59706843
HOLY TIME GROUP LIMITED 57289100 Domestically listed foreignstock 57289100
GAOLING FUND L.P. 45366683 Domestically listed foreignstock 45366683
NAMNGAI 23000000 Domestically listed foreignstock 23000000
HONG KONG SECURITIES CLEARING 22292686 RMB-denominated ordinaryCOMPANY LTD. stock 22292686
CHINA MERCHANTS SECURITIES 19865520 Domestically listed foreign(HK) LIMITED stock 19865520
BOCOM INTERNATIONAL Domestically listed foreign
SECURITIES LIMITED 18896037 stock 18896037
Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first
Related or acting-in-concert parties among majority shareholder Overseas Chinese Town Holdings Company (OCT Group) holds
top 10 unrestricted public shareholders as 180001110 and 18360000 ordinary shares in the Company respectively through CITIC
well as between top 10 unrestricted public Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants Securities (HK)
shareholders and top 10 shareholders Limited. Happy Bloom Investment Limited and OCT Group are parties acting in concert.Other than that it is unknown whether the other shareholders are related parties or acting-
in-concert parties or not.Top 10 ordinary shareholders involved in
securities margin trading (if any) (see note Wang Jingfeng holds 70000000 A-shares in the Company through his securities account
4) for customer credit trading guarantee in Guotai Junan Securities Co. Ltd.
Top 10 shareholders involved in refinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders compared with the prior period
□Applicable √ Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.□ Yes √ No
111Konka Group Co. Ltd. Annual Report 2023
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a central state-owned legal person
Type of the controlling shareholder: legal person
Name of Legal Date
Unifie
representat of dactual
controller ive/person establi
social Principal activity
in charge shment creditcode
Export of textile light industrial products etc; import of self-used goods in
Shenzhen mechanical equipment light industrial products etc. as approved by
the relevant authorities of Shenzhen (under Government Document JMB [92]
Overseas WJMGTSZZ No. A19024); compensation trade; investment in tourism and
Chinese 11 91440 relevant cultural industry (including art performance entertainment and their
Town Zhang Nove 30019 services etc) industry real estate commerce & trade packaging decoration
Holdings Zhengao mber 03461 and investment in printing industry. The convert of export commodities into
Company 1985 75T domestic sale and the domestic sales of import commodities. Travelling rentalof warehouses culture and art bonded warehouse of car donation convention
and exhibition services (the projects involved in license management can be
operated after getting the relevant license first ); sales of automobile (sedan car
included)
As of 31 December 2023 Overseas Chinese Town Holdings Company directly held 47.01% equity of Shenzhen
Controlling Overseas Chinese Town Co. Ltd. (a company listed in Shenzhen Stock Exchange SZ. 000069) and indirectly
shareholder held 0.96% equity of Shenzhen Overseas Chinese Town Co. Ltd. through OCT Capital Investment Management
’s holdings Co. Ltd. Meanwhile Shenzhen Overseas Chinese Town Co. Ltd. indirectly held 70.94% equity of OCT (Asia)
in other Holdings Ltd. (a company listed on the main Board of Hong Kong Stock Exchange 3366.HK). Overseas Chinese
listed Town Holdings Company indirectly held 53.88% equity of Yunnan Tourism Co. Ltd. (a company listed in
companies Shenzhen Stock Exchange SZ.002059).Overseas Chinese Town Holdings Company held 7.11% equity of China
at home or Everbright Bank Company Limited (a company listed on the main Board of Shanghai Stock Exchange
abroad in (SH.601818) and the main Board of Hong Kong Stock Exchange (6818.HK). Overseas Chinese Town Holdings
the Company indirectly held 2.74% equity of Zhejiang Century Huatong Group Co. Ltd. (a company listed in
Reporting Shenzhen Stock Exchange SZ.002602) through its subsidiary Shenzhen OCT Capital Investment Management
Period Co. Ltd. Overseas Chinese Town Holdings Company indirectly held 11.12% of equity of Jiangsu GuoxinCorporation Limited (a company listed in Shenzhen Stock Exchange SZ. 002608) through its subsidiary
Shenzhen OCT Capital Investment Management Co. Ltd..Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Central institution for state-owned assets management
Type of the actual controller: legal person
Name of actual controller Legal representative/person in Date of Unified social Principalcharge establishment credit code activity
112Konka Group Co. Ltd. Annual Report 2023
State-owned Assets Supervision and
Administration Commission of the Zhang Yuzhuo Not applicable Not applicable
State Council
Actual controller’s holdings in other listed companies at home or abroad in the Reporting Period Not applicable
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of
asset management.□ Applicable √ Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder
or the Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all
shares of the Company held by Them
□Applicable √ Not applicable
5. Other 10% or Greater Corporate Shareholders
□Applicable √ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual
Controller Reorganizer and Other Commitment Makers
113Konka Group Co. Ltd. Annual Report 2023
□Applicable √ Not applicable
IV Specific Implementation of Share Repurchases in the Reporting Period
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
114Konka Group Co. Ltd. Annual Report 2023
Part VIII Preference Shares
□Applicable √ Not applicable
No Preference shares in the Reporting Period.
115Konka Group Co. Ltd. Annual Report 2023
Part IX Corporate Bonds
√ Applicable □ Not applicable
I Enterprise Bonds
□Applicable √ Not applicable
No enterprise bonds in the Reporting Period.II Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB’0000
Bonds Way of
Name Abbr. Code Issue date Value Due date balance Interestdate (RMB’0 rate redemptio
Trade
n place000)
Interests
shall be
Privately placed paid
corporate bonds every
in 2021 of 21 8 January 8 January 8 January year and ShenzhenKonk 100000.Konka Group 114894 4.46% the Stock2021 2021 2024 00
Co. Ltd a 01 principals Exchange
(Tranche I) shall berepaid
when
expired.Interests
shall be
Privately placed paid
corporate bonds every
in 2021 of 21 21 May 21 May 21 May year and Shenzhen
Konka Group Konk 133003a 02 2021 2021 2024
50000.00 4.00% the Stock
Co. Ltd principals Exchange
(Tranche II) shall berepaid
when
expired.Interests
shall be
Privately placed paid
corporate bonds
in 2021 of 21
every
9 July 9 July 9 July Shenzhenyear and
Konka Group Konk 133040 2021 2021 2024 80000.00 3.95% Stockthe
Co. Ltd a 03 Exchangeprincipals
(Tranche III) shall be
repaid
when
116Konka Group Co. Ltd. Annual Report 2023
expired.Interests
Corporate bonds shall be
publicly offered paid
to professional every
investors in 22Konk 149987 14 July 14 July 14 July 120000.0
year and Shenzhen
2022 of Konka a 01 2022 2022 2025 0
3.23% the Stock
Group Co. Ltd. principals Exchange
(Tranche I) shall be
(Variety I) repaidwhen
expired.Interests
Privately placed shall be
corporate bonds paid
to professional every
investors in 22 8 8 8 year and Shenzhen
2022 of Konka Konk 133306 Septembe Septembe Septembe 60000.00 3.30% the Stock
Group Co. Ltd a 03 r 2022 r 2022 r 2025 principals Exchange
(Tranche I) shall be
(Variety I) repaidwhen
expired.Interests
shall be
Privately placed paid
corporate bonds every
to professional 22 18 18 18 year and Shenzhen
investors in Konk 133333 October October October 60000.00 3.50% the Stock
2022 of Konka a 05 2022 2022 2025 principals Exchange
Group Co. Ltd shall be
(Tranche II) repaid
when
expired.Interests
Privately placed shall bepaid
corporate bonds every
to professional 24 29 29 29 year and Shenzhen
investors in Konk 133759 January January January 150000 4.00% the Stock
2024 of Konka a 01 2024 2024 2027 principals Exchange
Group Co. Ltd shall be
(Tranche I) repaidwhen
expired.Interests
Privately placed shall be
corporate bonds paid
to professional every
24
investors in year and Shenzhen
Konk 133782 18 March 18 March 18 March
2024 of Konka 2024 2024 2027
40000 4.00% the Stock
a 02 principals Exchange
Group Co. Ltd shall be
(Tranche II) repaid
(Variety I) when
expired.
117Konka Group Co. Ltd. Annual Report 2023
Interests
Privately placed shall be
corporate bonds paid
to professional every
24
investors in year and Shenzhen
Konk 133783 18 March 18 March 18 March2024 2024 2027 40000 4.03% the Stock2024 of Konka
a 03 principals Exchange
Group Co. Ltd shall be
(Tranche II) repaid
(Variety II) when
expired.“21 Konka 01”、“21 Konka 02” “21 Konka 03” “22 Konka 03” “22 Konka 05” “24Konka 01” “24 Konka 02” and “24 Konka 03” were placed privately to professional
investors meeting the requirements of management method for investors eligibility of
Appropriate arrangement of the Shenzhen Stock Exchange which not exceeding 200 persons. “22 Konka 01” was offered
investors (if any) publicly to professional institutional investors meeting the requirements of Measures for
the Administration of Issuing and Trading Corporate Bonds and opening a qualified A-
share securities account in Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited.Applicable trade mechanism Comprehensive protocol trading platform: Match-and-deal click-and-deal inquire-and-deal bid-and-deal and negotiate-and-deal
Risk of delisting (if any) and
countermeasures No
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the
Investor Protection Clause
□Applicable √ Not applicable
3. Intermediary
Bond Intermediary Office address Signature Contact person ofaccountant intermediary Contact number
Industrial 32/F SK Building No. 6
Securities Co. Jianguomen Waidajie / Zhang Huifang 010-50911203
Ltd Chaoyang District Beijing Zhang Ning
Centralized Business
21 Konka 01 Finance and Business
21 Konka 02 ZTF Securities District Zone B Zhongtian
21 Konka 03 Co. Ltd. Exhibition City North / Qian Xi Cai Dan 0755-28777990Changling Road Guanshanhu
District Guiyang Guizhou
(North)
United Ratings No.2 Jianwai Street
Co. Ltd. Chaoyang District Beijing / Liu Qi 010-85679696
118Konka Group Co. Ltd. Annual Report 2023
Beijing 19-25/F Building 2 CP
Yingke Law Center Yard 20 Jinhe East / Zhang Jinxing
Firm Road Chaoyang District Han Jian
0755-36866600
Beijing
Shinewing
Certified
Public 8/F Block A Fu Hua
Accountants Mansion No. 8 Liu Jianhua Tang Liu Jianhua Tang 028-62922886
(Special Chaoyangmen Beidajie Qimei Qimei
General Dongcheng District Beijing
Partnership)
Industrial 32/F SK Building No. 6
Securities Co. Jianguomen Waidajie / Zhang Huifang 010-50911203
Ltd Chaoyang District Beijing Zhang Ning
Centralized Business
Finance and Business
ZTF Securities District Zone B Zhongtian
Co. Ltd. Exhibition City North / Qian Xi Cai Dan 0755-28777990Changling Road Guanshanhu
District Guiyang Guizhou
(North)
United Ratings No.2 Jianwai Street
22 Konka 01 Co. Ltd. Chaoyang District Beijing / Liu Qi 010-85679696
Beijing 19-25/F Building 2 CP
Yingke Law Center Yard 20 Jinhe East Zhang Jinxing
Firm Road Chaoyang District
/ Han Jian 0755-36866600
Beijing
Shinewing
Certified 8/F Block A Fu Hua Guo DongchaoPublic
Accountants Mansion No. 8
Liu Lihong Zhan
Chaoyangmen Beidajie Miaoling Liu
Liu Jianhua Tang 028-62922886
(Special Dongcheng District Beijing Jianhua Tang
Qimei
General Qimei
Partnership)
Industrial 32/F SK Building No. 6
Securities Co. Jianguomen Waidajie / Zhang Huifang 010-50911203
Ltd Chaoyang District Beijing Zhang Ning
Centralized Business
Finance and Business
ZTF Securities District Zone B Zhongtian
Co. Ltd. Exhibition City North / Qian Xi 0755-28777990Changling Road Guanshanhu
22 Konka 03 District Guiyang Guizhou
22 Konka 05 (North)
Beijing 19-25/F Building 2 CP
Yingke Law Center Yard 20 Jinhe East Zhang Jinxing
Firm Road Chaoyang District
/ Han Jian 0755-36866600
Beijing
Shinewing 8/F Block A Fu Hua Guo Dongchao Liu Jianhua Tang 020-28309500
Certified Mansion No. 8 Liu Lihong Zhan Qimei
119Konka Group Co. Ltd. Annual Report 2023
Public Chaoyangmen Beidajie Miaoling Liu
Accountants Dongcheng District Beijing Jianhua Tang
(Special Qimei
General
Partnership)
Industrial 32/F SK Building No. 6
Securities Co. Jianguomen Waidajie / Zhang Huifang 010-50911203
Ltd Chaoyang District Beijing Zhang Ning
China
Merchants No. 111 Fuhua 1st Road Chen Cheng Feng
Securities Co. Futian Street Futian District / 0755-82943666
Ltd. Shenzhen Guangdong
Shu
Sinolink 23/F Zizhu International
Securities Co. Building No. 1088 Fangdian
Yao Heng Qing
Road Pudong NewArea / Chunlin Zhu Jing 021-68826021Ltd. Shanghai Zhu Caiyu
24 Konka 01
Century 16/F Building C Huahai24 Konka 02
Securities Co. Financial Innovation Center / Li Jiaqing Yang 0755-83199417
24 Konka 03 Ltd. No. 5073 Menghai Avenue QiNanshan District Shenzhen
Beijing 19-25/F Building 2 CP
Yingke Law Center Yard 20 Jinhe East / Zhang Jinxing 0755-36866600
Firm Road Chaoyang District Han JianBeijing
Shinewing
Certified
Public 8/F Block A Fu Hua
Accountants Mansion No. 8 Tang Qimei Liu Tang Qimei LiuChaoyangmen Beidajie Lihong Lihong 020-28309500(Special
General Dongcheng District Beijing
Partnership)
Did the intermediary change during the Reporting Period
□ Yes √ No
4. List of the Usage of the Raised Funds
Unit: RMB
Whether is
consistent with
Rectification of
Operation of the usage using
raised funds for
Unused special account plan and other
Bonds Total amount Amount spent violation
amount for raised funds agreements
operation (if
(if any) stipulated in the
any)
raising
specification
21 Konka 100000.00 100000.00 0 It has been
01 operating well Yes
120Konka Group Co. Ltd. Annual Report 2023
and there has
21 Konka 50000.00 50000.00 0 been no
02 violation of
relevant
21 Konka 80000.00 80000.00 0 regulations and
03 fund
supervision
22 Konka agreements.120000.00 120000.00 0
01
22 Konka 60000.00 60000.00 0
03
22 Konka 60000.00 60000.00 0
05
24 Konka 50000.
150000.00100000.00
0100
24 Konka 40000.
40000.000
0200
24 Konka 0 40000.40000.00
0300
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□Applicable √ Not applicable
6. Execution and Changes of Guarantee Repayment Plan and Other Repayment Guarantee
Measures as well as Influence on Equity of Bond Investors during the Reporting Period
√ Applicable □ Not applicableOCT Group provides full unconditional and irrevocable joint liability guarantee for “21 Konka
01”， “21 Konka 02” “21 Konka 03” “22 Konka 01” “22 Konka 03” “22 Konka 05” “24Konka 01” “24 Konka 02” and “24 Konka 03”. The Credit Enhancement Mechanisms
Redemption Plans and Other Redemption Security Measures during the Reporting Period are
executed according to agreement. No change occurred.III Debt Financing Instruments of Non-financial Enterprises
□Applicable √ Not applicable
121Konka Group Co. Ltd. Annual Report 2023
No such cases in the Reporting Period.IV Convertible Corporate Bonds
□Applicable √ Not applicable
No such cases in the Reporting Period.V Losses of Scope of Consolidated Financial Statements during the Reporting Period
Exceeding 10% of Net Assets up the Period-end of Last Year
√ Applicable □ Not applicable
Impact on the company's
Item Details of loss Reason for loss production operation and
solvency
1. In 2023 the Company incurred a certain degree of loss in
its colour TV business due to factors such as product strategy
adjustments and ongoing supply chain fluctuations. In terms The Company will follow the
of domestic sales of colour TVs the Company made new development strategy of
systematic adjustments to its product planning and sales "One Axis Two Wheels and
strategies during the current period. The mid-to-high-end Three Growth Drivers" and
new products X6/M6/R7 were mainly launched in the second adhere to long-term value-
half of 2023. However the introduction and sales ramp-up oriented principles and the
cycle of these new TV products lagged behind failing to operational strategy of focusing
fully compensate for the clearance losses resulting from the on the long term making profit
discontinuation of old models. This to some extent affected before expansion and
the sales scale and total profit of the Company's domestic TV improving specialization before
During the business. Regarding TV exports and OEM business due to consolidation. It will also
Reporting the continuous fluctuation in upstream supply chain costs in deepen professional integration
Period the 2023 the gross margin of orders delivered by the Company's implement lean management
Company's net
Net profit TV exports and OEM business was relatively low. Although
and promote high-quality
profit loss development. The Company
attributabl strategic adjustments helped to gradually improve the
attributable to
e to operational quality in the second half of 2023 the gross
will allocate resources to
shareholders of
sharehold margin for the full year 2023 was still unable to fully cover
support the development of its
listed core business focusing on
ers of rigid expenses.companies was driving the growth and
listed
RMB2164 2. In 2023 in accordance with the Company's development profitability of the white goods
companies
million strategy and considering the macroeconomic environment and PCB sectors. Lean
accounting for the Company upheld the principle of "industrial park service management will be
38.34% of the aligned with core business strategy" and continued to reduce implemented to enhance value
net assets. its business in industrial parks. There were virtually no new creation and reduce losses in the
large-scale industrial park projects in 2023 resulting in a colour TV business. Innovation
decrease in related income compared to the previous year. efforts will be directed towards
capitalization and efficiency
3. In 2023 although the Company's semiconductor business output of the semiconductor
made certain achievements in several key industrial chain business thereby creating a
technologies it remained in the early stages of specialized business matrix. The
industrialization. R&D investment continued to grow but loss for the reporting period will
scale and efficiency in output were not achieved affecting not affect the normal production
the overall operating profit of the Company. and operation of the Company
4. In 2023 based on the principle of prudence the Company and the repayment of debts due.
made a provision for asset impairment of approximately
RMB1017million in accordance with accounting policies
122Konka Group Co. Ltd. Annual Report 2023
and estimates resulting in a decrease in profit.
5. In 2023 the Company strategically optimized non-core
operations such as industry trade and environmental
protection resulting in a narrowing of profit sources and a
decrease in related income.VI Matured Interest-bearing Debt excluding Bonds up the Period-end
□Applicable √ Not applicable
VII Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0000
Item 31 December 2023 31 December 2022 Increase/decrease
Current ratio 87.69% 118.17% -25.79%
Debt/asset ratio 83.51% 77.74% 5.77%
Quick ratio 70.07% 88.59% -20.91%
2023 2022 Increase/decrease
Net profit after deducting
non-recurring profit or loss -291444.51 -266555.04 -9.34%
EBITDA/debt ratio -6.33% -3.45% -2.88%
Times interest earned -3.50 -1.99 -75.88%
Times interest earned of cash 2.17 0.42 416.67%
Times interest earned of
EBITDA -2.39 -1.12 -113.39%
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
123Konka Group Co. Ltd. Annual Report 2023
Part X Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 29 March 2024
Name of the independent auditor ShineWing Certified Public Accountants (Special General
Partnership)
Reference number of audit report XYZH/2024SZAA8B0233
Name of the certified public accountants Tang Qimei Liu Lihong
Independent Auditor’s Report
XYZH/2024SZAA8B0233
Konka Group Co. Ltd.All shareholders of Konka Group Co. Ltd.：
I. OpinionWe have audited the accompanying financial statements of Konka Group Co. Ltd. (the “KonkaGroup”) which comprise the Company’s and consolidated balance sheets of the parent company as
at 31 December 2023 the Company’s and consolidated income statements of the parent company
the Company’s and consolidated cash flow statements of the parent company the Company’s and
consolidated statements of changes in shareholders’ equity of the parent company for the year then
ended as well as the notes to the financial statements.In our opinion the financial statements attached were prepared in line with the regulations of
Accounting Standards for Business Enterprises in all significant aspects which gave a true and fair
view of the consolidated and parent financial position of the Company as at 31 December 2023 and
the consolidated and parent business performance and cash flow of the Company for 2023.II. Basis for Opinion
We conducted our audit in accordance with Standards on Auditing for Certified Public Accountants.Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. In accordance with professional ethics
for certified public accountants we are independent with Foshan Huaxin Packing Co. Ltd. and we
have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained
124Konka Group Co. Ltd. Annual Report 2023
is sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in
our audit of the financial statements of the Current Period. These matters were addressed in the
context of our audit of the financial statements as a whole and in forming our opinion thereon and
we do not provide a separate opinion on these matters.
1. Recognition of operating revenues
Key audit matters Countermeasures of audit
Please refer to the notes to the financial statements "six (1) Evaluate and test income to confirm the
notes to the consolidated financial statements" 50. In 2023 effectiveness of key internal control design and
Konka Group's consolidated financial statements operation;
confirmed operating income of RMB17849331400 the
(2) Obtain signed sales contracts analyze relevant
mainly revenue comes from the Color TV white goods
provisions and evaluate whether the revenue
optoelectronic display storage and printed circuit boards
recognition of Konka Group is in compliance with the
etc. Due to the importance of revenue to the financial
Accounting Standards for Business Enterprises;
statements as a whole and the inherent misstatement risk
of management's manipulation of revenue recognition in (3) Obtain the sales list of Konka Group products
order to achieve specific goals or expectations we make examine the customers’ information registered with the
revenue recognition a key audit matter. industrial and commercial administration inquire the
relevant personnel of Konka Group and identify
whether any of the customers is a related party to
Konka Group;
(4) Perform analytical procedures on revenue and costs
evaluate the rationality of sales revenue and gross profit
margin changes;
(5) Examine materials such as important sales contracts
orders invoices goods ownership transfer certificates
bank receipts invoices; select important customers
verify the transaction amounts and balances in writing
to verify the truthfulness completeness and accuracy of
revenue;
(6) Conduct a cut-off test on sales revenue.
125Konka Group Co. Ltd. Annual Report 2023
2. Recognition of investment income
Key audit matters Countermeasures of audit
Please refer to the notes to the financial statements "six (1) Evaluate and test income to confirm the
notes to the consolidated financial statements"57. In 2023 effectiveness of key internal control design and
Konka Group's consolidated financial statements operation;
confirmed investment income of RMB675405200 the
(2) Obtaining relevant decision-making documents for
mainly revenue comes from the investment income from
the disposal of the target company's equity as well as
the transfer of long-term equity investments held by Konka
equity transfer agreements and transaction documents
Group to financial assets held for trading as a result of the
conducting interviews with the Konka Group company's
reduction of its holdings in the secondary market during
management and selected equity transferees to
the year as well as investment income arising from the
understand the commercial background and rationality
disposal of long-term equity investments in certain
of the equity transfer in order to determine the
subsidiaries. Since the amount of investment income is
authenticity of the equity transfer;
significant we confirm the recognition of investment
income as a key audit matter. (3) Obtaining bank receipt certificates for the transfer of
equity and inquiring about industrial and commercial
changes in the company that is the subject of the
transfer of equity so as to determine whether the
formalities related to the transfer of shares have been
completed;
(4) Review the fairness of the consideration for the
equity transaction and check whether the measurement
of investment income from the disposal of equity
interests is in accordance with the provisions of
enterprise accounting standards;
(5) The procedures implemented in response to the
change of the accounting method for the Konka Group
Company's equity investment are as follows:
* Obtain decision-making documents related to the
change of accounting methods interview the
management and invested company controlling
shareholders of the Konka Group Company and obtain
relevant information;
* Based on the information obtained and the
126Konka Group Co. Ltd. Annual Report 2023
interviews evaluate whether the Konka Group
Company's equity interest in the investee company has
significant influence on the investee company and
analyze whether the Konka Group Company's
accounting for the matter of identifying the equity
investment as an investment in an equity instrument for
trading and designating it as a financial asset at fair
value through profit or loss is consistent with the
provisions of the Accounting Standards for Business
Enterprises.
(6) Review the calculation process of Konka Group's
equity transfer and accounting method change to
confirm investment income and check whether the
calculation of investment income is accurate.IV. Other Information
The management of the Company is responsible for the other information. The other information
comprises all of the information included in the annual report for 2023 other than the financial
statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this
other information we are required to report that fact. We have nothing to report in this regard.V. Responsibility of Management and Those Charged with Governance for the Financial
Statements
The management of the Company is responsible for the preparation and fair presentation of these
financial statements in accordance with Accounting Standards for Business Enterprises to make
them a fair presentation and designing implementing and maintaining internal control relevant to
the preparation of financial statements that are free from material misstatement whether due to
fraud or error.
127Konka Group Co. Ltd. Annual Report 2023
In preparing the financial statements the management of the Company is responsible for assessing
the Company’s ability to continue as a going concern disclosing if applicable matters related to
going concern and using the going concern basis of accounting unless the management either
intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.VI. CPA’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement whether due to fraud or error and to issue an auditor’s report
that includes our opinion. We report our opinion solely to you as a body and for no other purpose.We do not assume responsibility towards or accept liability to any other person for the contents of
this report. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.As part of an audit in accordance with auditing standards we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of major misstatement of financial statements due to fraud or errors
design and implement audit procedures to deal with these risks and obtain sufficient and
appropriate audit evidence as the basis for issuing audit opinions. Since fraud may involve collusion
forgery intentional omissions misrepresentation or overriding internal control the risk of failing to
detect a major misstatement due to fraud is higher than the risk of failing to detect a major
misstatement due to error.
(2) Understand the internal control related to auditing in order to design appropriate auditing
procedures.
(3) Evaluate the appropriateness of management's selection of accounting policies and the
rationality of accounting estimates and related disclosures.
(4) To draw conclusions on the appropriateness of the management's use of continuous operation
assumptions. At the same time based on the audit evidence obtained a conclusion can be drawn on
whether there is a material uncertainty that may cause significant doubts about Konka Group's
ability to continue operations. If we conclude that there are significant uncertainties the auditing
standards require us to draw the attention of the users of the statements to the relevant disclosures in
128Konka Group Co. Ltd. Annual Report 2023
the financial statements in the audit report; if the disclosures are insufficient we should issue a non-
reserved opinion. Our conclusion is based on the information available as of the date of the audit
report. However future events or circumstances may prevent Konka Group from continuing its
operations.
(5) Evaluate the overall presentation structure and content of the financial statements and evaluate
whether the financial statements fairly reflect related transactions and events.We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and
related safeguards (if applicable).From the matters communicated with those charged with governance we determine those matters
that were of most significance in the audit of the financial statements of the Current Period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when in extremely rare circumstances
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.ShineWing Certified Public Accountants CPA: (Engagement Partner)
(Special General Partnership)
CPA:
Beijing·China 29 March 2024
129Konka Group Co. Ltd. Annual Report 2023
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co. Ltd.
31 December 2023
Unit: RMB
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 6506359577.02 5988095490.71
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 469636700.78
Derivative financial assets
Notes receivable 533171949.15 1059737243.54
Accounts receivable 1726545973.08 2036734836.22
Accounts receivable financing 173396326.14 237187228.44
Prepayments 165454311.51 389947652.39
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 989121067.51 1442124845.58
Including: Interest receivable 6681258.01 3878580.64
Dividends receivable 941482.38 272999.43
Financial assets purchased under resale
agreements
Inventories 3249897700.98 4409767756.22
130Konka Group Co. Ltd. Annual Report 2023
Contract assets 2190385.93
Assets held for sale
Current portion of non-current assets 14630000.00
Other current assets 2359159468.75 2038841225.83
Total current assets 16174933460.85 17617066278.93
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 800400.00
Long-term equity investments 5566483863.29 6351232955.58
Investments in other equity
instruments 23841337.16 23841337.16
Other non-current financial assets 2009676398.00 2639662273.32
Investment property 1470226723.87 802407844.60
Fixed assets 5218297745.16 4114029693.38
Construction in progress 860899498.68 1990361377.07
Productive living assets
Oil and gas assets
Right-of-use assets 197054423.17 50019838.68
Intangible assets 1087386015.34 1116739707.27
Development costs
Goodwill 22196735.11 22196735.11
Long-term prepaid expense 518919223.71 387309503.07
Deferred income tax assets 1426573982.16 1197406370.65
Other non-current assets 1248328806.16 1710245378.26
Total non-current assets 19649884751.81 20406253414.15
131Konka Group Co. Ltd. Annual Report 2023
Total assets 35824818212.66 38023319693.08
Current liabilities:
Short-term borrowings 6390592056.27 7579559304.97
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 990482927.20 1054573822.04
Accounts payable 2726831675.97 2659946562.93
Advances from customers 825.69
Contract liabilities 527975160.12 601044358.35
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 304733103.63 348608204.05
Taxes payable 214417135.87 291102679.36
Other payables 1922791905.14 1895711373.34
Including: Interest payable 29590464.00
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities 5314147396.36 409220030.69
132Konka Group Co. Ltd. Annual Report 2023
Other current liabilities 54330715.75 68449783.71
Total current liabilities 18446302076.31 14908216945.13
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7779150079.88 8906931402.89
Bonds payable 2426992578.67 4792392044.13
Including: Preferred shares
Perpetual bonds
Lease liabilities 160218818.92 36586639.16
Long-term payables 6135734.07 7964127.18
Long-term employee benefits payable 4718466.37 4894209.73
Provisions 304519839.80 159395579.55
Deferred income 425135237.90 334844966.31
Deferred income tax liabilities 185026165.27 95427298.31
Other non-current liabilities 179996351.33 314233260.08
Total non-current liabilities 11471893272.21 14652669527.34
Total liabilities 29918195348.52 29560886472.47
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 526499506.76 365247361.05
Less: Treasury stock
Other comprehensive income -13443558.44 -14265181.63
Specific reserve 4657488.24
133Konka Group Co. Ltd. Annual Report 2023
Surplus reserves 1244180364.24 1244180364.24
General reserve
Retained earnings 1474561975.85 3638352029.02
Total equity attributable to owners of the
Company as the parent 5644401184.65 7641459980.68
Non-controlling interests 262221679.49 820973239.93
Total owners’ equity 5906622864.14 8462433220.61
Total liabilities and owners’ equity 35824818212.66 38023319693.08
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2023 1 January 2023
Current assets:
Monetary assets 4739026071.80 3987295740.42
Held-for-trading financial assets 469636700.78
Derivative financial assets
Notes receivable 212545745.69 353764106.66
Accounts receivable 2907508425.51 4473878994.50
Accounts receivable financing
Prepayments 3050914644.86 2105477988.44
Other receivables 7962523971.43 10342326355.05
Including: Interest receivable 6325400.49 3878580.64
Dividends receivable 395209709.13 393563347.61
Inventories 74359735.29 173658748.80
Contract assets
Assets held for sale
Current portion of non-current assets
134Konka Group Co. Ltd. Annual Report 2023
Other current assets 1776247847.16 1581440821.79
Total current assets 21192763142.52 23017842755.66
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 8353187518.14 9100689137.42
Investments in other equity
instruments 17940215.36 17940215.36
Other non-current financial assets 396353137.96 396353137.96
Investment property 896398058.58 439835051.61
Fixed assets 408039474.28 418021638.28
Construction in progress 10456702.05 481659536.66
Productive living assets
Oil and gas assets
Right-of-use assets 1341125.40
Intangible assets 44546041.59 65620126.31
Development costs
Goodwill
Long-term prepaid expense 43352655.77 36665581.09
Deferred income tax assets 1186943851.11 1127531647.49
Other non-current assets 42958066.97 458931.60
Total non-current assets 11400175721.81 12086116129.18
Total assets 32592938864.33 35103958884.84
Current liabilities:
Short-term borrowings 2344154349.99 2217049472.22
Held-for-trading financial liabilities
135Konka Group Co. Ltd. Annual Report 2023
Derivative financial liabilities
Notes payable 83813428.75 890526510.04
Accounts payable 6459535317.41 6918579963.57
Advances from customers
Contract liabilities 943718573.19 2445363632.98
Employee benefits payable 65273780.70 90137022.47
Taxes payable 9069845.15 4095684.11
Other payables 3471748973.76 3941891644.62
Including: Interest payable 29271307.22
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities 5206842165.89 151933839.55
Other current liabilities 9728362.56 7129729.38
Total current liabilities 18593884797.40 16666707498.94
Non-current liabilities:
Long-term borrowings 6655411621.10 8261287052.44
Bonds payable 2426992578.67 4792392044.13
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 201607949.06 83666032.25
Deferred income 40966821.50 43377324.62
Deferred income tax liabilities 69803544.47
136Konka Group Co. Ltd. Annual Report 2023
Other non-current liabilities 45682878.82 42948698.55
Total non-current liabilities 9440465393.62 13223671151.99
Total liabilities 28034350191.02 29890378650.93
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 341229750.75 241044390.55
Less: Treasury stock
Other comprehensive income -1399371.64 -1500000.00
Specific reserve
Surplus reserves 1260024039.76 1260024039.76
Retained earnings 550788846.44 1306066395.60
Total owners’ equity 4558588673.31 5213580233.91
Total liabilities and owners’ equity 32592938864.33 35103958884.84
3. Consolidated Income Statement
Unit: RMB
Item 2023 2022
1. Revenue 17849331429.24 29607854255.27
Including: Operating revenue 17849331429.24 29607854255.27
Interest revenue
Insurance premium income
Handling charge and commission income
2. Costs and expenses 20267187420.23 32164076308.01
Including: Cost of sales 17149036750.50 28788638393.88
137Konka Group Co. Ltd. Annual Report 2023
Interest costs
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 105488040.47 119339820.01
Selling expense 1145124848.96 1240144735.77
Administrative expense 807527910.20 949647590.28
R&D expense 497993759.86 543882024.89
Finance costs 562016110.24 522423743.18
Including: Interest expense 884535066.01 913721408.10
Interest income 286969209.86 237115652.09
Add: Other income 270618031.94 928712500.81
Return on investment (“-” for loss) 675405221.53 936006397.44
Including: Share of profit or loss of joint
ventures and associates -170413352.22 123392731.97
Income from the derecognition of
financial assets at amortized cost (“-” for -4507260.06
loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for
loss)
Gain on changes in fair value (“-” for
loss) -97937910.89 -40731333.54
Credit impairment loss (“-” for loss) -456603000.84 -949885019.53
Asset impairment loss (“-” for loss) -560592965.39 -295395852.33
138Konka Group Co. Ltd. Annual Report 2023
Asset disposal income (“-” for loss) 54321.20 9580708.29
3. Operating profit (“-” for loss) -2586912293.44 -1967934651.60
Add: Non-operating income 26263072.49 125139042.00
Less: Non-operating expense 156685855.03 224724245.84
4. Profit before tax (“-” for loss) -2717335075.98 -2067519855.44
Less: Income tax expense -81448414.64 -298299507.08
5. Net profit (“-” for net loss) -2635886661.34 -1769220348.36
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“-” for net loss) -2635886661.34 -1769220348.36
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the -2163790053.17 -1470466806.68
parent
5.2.1 Net profit attributable to non-
controlling interests -472096608.17 -298753541.68
6. Other comprehensive income net of
tax -84979.37 7669161.80
Attributable to owners of the Company
as the parent 821623.19 6070906.24
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
139Konka Group Co. Ltd. Annual Report 2023
6.2 Items that will be reclassified to
profit or loss 821623.19 6070906.24
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under -86041.63 -2814803.62
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 currency- 907664.82 8885709.86
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -906602.56 1598255.56
7. Total comprehensive income -2635971640.71 -1761551186.56
Attributable to owners of the Company
as the parent -2162968429.98 -1464395900.44
Attributable to non-controlling interests -473003210.73 -297155286.12
8. Earnings per share
8.1 Basic earnings per share -0.8986 -0.6107
8.2 Diluted earnings per share -0.8986 -0.6107
Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2023 2022
1. Operating revenue 1847995092.79 1811783519.02
Less: Cost of sales 1881115675.91 1962490364.97
Taxes and surcharges 13005236.44 15338452.88
140Konka Group Co. Ltd. Annual Report 2023
Selling expense 246898982.08 366876186.97
Administrative expense 294635923.59 336016963.92
R&D expense 33956995.43 72787542.14
Finance costs 417683630.95 285666822.84
Including: Interest costs 790542260.97 819229878.82
Interest revenue 357509620.15 353261761.47
Add: Other income 51184013.42 54121427.81
Return on investment (“-” for loss) 644677669.41 538946392.20
Including: Share of profit or loss of joint
ventures and associates -34502328.35 138908805.41
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) -133358646.82 -44886112.74
Credit impairment loss (“-” for loss) -86470747.72 -711816020.43
Asset impairment loss (“-” for loss) -90170750.24 -355291000.36
Asset disposal income (“-” for loss) -17987.13 6034182.85
2. Operating profit (“-” for loss) -653457800.69 -1740283945.37
Add: Non-operating income 2160817.77 91504267.54
Less: Non-operating expense 87467742.44 64661744.87
3. Profit before tax (“-” for loss) -738764725.36 -1713441422.70
Less: Income tax expense 10424753.35 -415717523.01
4. Net profit (“-” for net loss) -749189478.71 -1297723899.69
4.1 Net profit from continuing
operations (“-” for net loss) -749189478.71 -1297723899.69
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of 100628.36
141Konka Group Co. Ltd. Annual Report 2023
tax
5.1 Items that will not be reclassified to
profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value arising
from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss 100628.36
5.2.1 Other comprehensive income that
will be reclassified to profit or loss under 100628.36
the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance for
investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income -749088850.35 -1297723899.69
7. Earnings per share
7.1 Basic earnings per share -0.31 -0.54
7.2 Diluted earnings per share -0.31 -0.54
142Konka Group Co. Ltd. Annual Report 2023
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities and
rendering of services 17378235561.44 31247109491.35
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 233820738.77 622846091.66
Cash generated from other operating
activities 1091889678.99 1597087027.13
Subtotal of cash generated from
operating activities 18703945979.20 33467042610.14
Payments for commodities and services 14643693951.06 29639887809.19
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
143Konka Group Co. Ltd. Annual Report 2023
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 1734831096.85 1800638478.78
Taxes paid 466335778.71 585416375.42
Cash used in other operating activities 1305983874.68 1969402988.58
Subtotal of cash used in operating
activities 18150844701.30 33995345651.97
Net cash generated from/used in
operating activities 553101277.90 -528303041.83
2. Cash flows from investing activities:
Proceeds from disinvestment 1463288277.00 875506214.56
Return on investment 140970812.05 128778266.85
Net proceeds from the disposal of fixed
assets intangible assets and other long- 27438051.10 9239243.90
lived assets
Net proceeds from the disposal of
subsidiaries and other business units 165963074.98 297094350.04
Cash generated from other investing
activities 683929746.03 3988535308.42
Subtotal of cash generated from
investing activities 2481589961.16 5299153383.77
Payments for the acquisition of fixed
assets intangible assets and other long- 1476559951.04 3613087559.62
lived assets
Payments for investments 7200000.00 877816559.18
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 529573236.98 482014454.76
Subtotal of cash used in investing 2013333188.02 4972918573.56
144Konka Group Co. Ltd. Annual Report 2023
activities
Net cash generated from/used in
investing activities 468256773.14 326234810.21
3. Cash flows from financing activities:
Capital contributions received 1978378.97 87895628.12
Including: Capital contributions by non-
controlling interests to subsidiaries 1978378.97 87895628.12
Borrowings raised 10950030506.74 20760552594.08
Cash generated from other financing
activities 738205183.98 525285976.82
Subtotal of cash generated from
financing activities 11690214069.69 21373734199.02
Repayment of borrowings 10672675811.70 19821101947.09
Interest and dividends paid 812403661.30 1025755719.07
Including: Dividends paid by
subsidiaries to non-controlling interests 735000.00 110680000.00
Cash used in other financing activities 1036318624.40 859164470.60
Subtotal of cash used in financing
activities 12521398097.40 21706022136.76
Net cash generated from/used in
financing activities -831184027.71 -332287937.74
4. Effect of foreign exchange rates
changes on cash and cash equivalents 22698315.32 27920961.23
5. Net increase in cash and cash
equivalents 212872338.65 -506435208.13
Add: Cash and cash equivalents
beginning of the period 5461912010.90 5968347219.03
6. Cash and cash equivalents end of the
period 5674784349.55 5461912010.90
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2023 2022
1. Cash flows from operating activities:
145Konka Group Co. Ltd. Annual Report 2023
Proceeds from sale of commodities and
rendering of services 5703782163.83 7297996873.73
Tax rebates 70166100.06 230063490.93
Cash generated from other operating
activities 208374488.43 372486582.46
Subtotal of cash generated from
operating activities 5982322752.32 7900546947.12
Payments for commodities and services 6122040543.84 7900208310.15
Cash paid to and for employees 250167106.81 312957158.05
Taxes paid 21411524.06 44490340.42
Cash used in other operating activities 382250859.55 927360896.15
Subtotal of cash used in operating
activities 6775870034.26 9185016704.77
Net cash generated from/used in
operating activities -793547281.94 -1284469757.65
2. Cash flows from investing activities:
Proceeds from disinvestment 962711727.95 572941738.40
Return on investment 73394567.02 70285307.27
Net proceeds from the disposal of fixed
assets intangible assets and other long- 493918.22 66770.14
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities 4984828057.53 6707788692.79
Subtotal of cash generated from
investing activities 6021428270.72 7351082508.60
Payments for the acquisition of fixed
assets intangible assets and other long- 126046197.64 219097737.67
lived assets
Payments for investments 139400000.00 896121280.49
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 3091985302.32 6311902161.21
146Konka Group Co. Ltd. Annual Report 2023
Subtotal of cash used in investing
activities 3357431499.96 7427121179.37
Net cash generated from/used in
investing activities 2663996770.76 -76038670.77
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 8177775555.56 17271455216.03
Cash generated from other financing
activities 9919391242.45 15043752843.76
Subtotal of cash generated from
financing activities 18097166798.01 32315208059.79
Repayment of borrowings 7748613878.32 15948765699.19
Interest and dividends paid 816702948.88 814951365.94
Cash used in other financing activities 10977125705.33 15040575205.97
Subtotal of cash used in financing
activities 19542442532.53 31804292271.10
Net cash generated from/used in
financing activities -1445275734.52 510915788.69
4. Effect of foreign exchange rates
changes on cash and cash equivalents 4531990.24 597369.19
5. Net increase in cash and cash
equivalents 429705744.54 -848995270.54
Add: Cash and cash equivalents
beginning of the period 3833613544.22 4682608814.76
6. Cash and cash equivalents end of the
period 4263319288.76 3833613544.22
147Konka Group Co. Ltd. Annual Report 2023
7. Consolidated Statements of Changes in Owners’ Equity
2023
Unit: RMB
2023
Equity attributable to owners of the Company as the parent
Other equity
Item instruments
G
en O
Less: Spec er t Non-controlling Total owners’Other interests equity
Share capital O Capital TreaPrefe reserves sury comprehensive
ific
reser Surplus reserves
al
re Retained earnings
h
Perpet t income e
Subtotal
rred stock ve se r
share ual h
s bonds e
rv
r e
1. Balance as at the end of the
prior year 2407945408.00 365247361.05 -14265181.63 1244180364.24 3637291770.33 7640399721.99 820973239.93 8461372961.92
Add: Adjustment for change in
accounting policy 1060258.69 1060258.69 1060258.69
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning
of the year 2407945408.00 365247361.05 -14265181.63 1244180364.24 3638352029.02 7641459980.68 820973239.93 8462433220.61
3. Increase/ decrease in the 4657
period (“-” for decrease) 161252145.71 821623.19 488. -2163790053.17 -1997058796.03 -558751560.44 -2555810356.4724
3.1 Total comprehensive
income 821623.19 -2163790053.17 -2162968429.98 -473003210.73 -2635971640.71
148Konka Group Co. Ltd. Annual Report 2023
3.2 Capital increased and
reduced by owners 161252145.71 161252145.71 -86392628.48 74859517.23
3.2.1 Ordinary shares increased
by owners -16021621.03 -16021621.03
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 161252145.71 161252145.71 -70371007.45 90881138.26
3.3 Profit distribution -735000.00 -735000.00
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to
owners (or shareholders) -735000.00 -735000.00
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
149Konka Group Co. Ltd. Annual Report 2023
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
4657
3.5 Specific reserve 488. 4657488.24 669962.82 5327451.06
24
5509
3.5.1 Increase in the period 215. 5509215.43 933563.87 6442779.30
43
3.5.2 Used in the period 851727.19 851727.19 263601.05 1115328.24
3.6 Other 709315.95 709315.95
4. Balance as at the end of the 4657
period 2407945408.00 526499506.76 -13443558.44 488. 1244180364.24 1474561975.85 5644401184.65 262221679.49 5906622864.1424
2022
Unit: RMB
2022
Item Equity attributable to owners of the Company as the parent
Non-controlling Total owners’
Other equity Retained interests equityShare capital instruments Capital reserves Less: Other Spe Surplus reserves Gen O SubtotalTreas comprehensive cific eral earnings t
150Konka Group Co. Ltd. Annual Report 2023
ury income rese reser h
Prefe Per stock rve ve e
rred petu O r
share al th
s bon erds
1. Balance as at the end of the
prior year 2407945408.00 234389963.10 -20336087.87 1244180364.24 5229098788.94 9095278436.41 1105670912.02 10200949348.43
Add: Adjustment for change
in accounting policy 117317.16 117317.16 117317.16
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning
of the year 2407945408.00 234389963.10 -20336087.87 1244180364.24 5229216106.10 9095395753.57 1105670912.02 10201066665.59
3. Increase/ decrease in the
period (“-” for decrease) 130857397.95 6070906.24 -1590864077.08 -1453935772.89 -284697672.09 -1738633444.98
3.1 Total comprehensive
income 6070906.24 -1470466806.68 -1464395900.44 -297155286.12 -1761551186.56
3.2 Capital increased and
reduced by owners 130857397.95 130857397.95 123636214.83 254493612.78
3.2.1 Ordinary shares
increased by owners 87895628.12 87895628.12
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 130857397.95 130857397.95 35740586.71 166597984.66
151Konka Group Co. Ltd. Annual Report 2023
3.3 Profit distribution -120397270.40 -120397270.40 -110680000.00 -231077270.40
3.3.1 Appropriation to
surplus reserves
3.3.2 Appropriation to
general reserve
3.3.3 Appropriation to
owners (or shareholders) -120397270.40 -120397270.40 -110680000.00 -231077270.40
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
152Konka Group Co. Ltd. Annual Report 2023
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other -498600.80 -498600.80
4. Balance as at the end of the
period 2407945408.00 365247361.05 -14265181.63 1244180364.24 3638352029.02 7641459980.68 820973239.93 8462433220.61
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2023
Unit: RMB
2023
Other equity instruments O
Item Less: Other t
Share capital Preferr Perpetu Capital reserves Treasury comprehensive
Specific
reserve Surplus reserves Retained earnings
h
e Total owners’ equity
ed al Other stock income r
shares bonds
1. Balance as at the end of the prior year 2407945408.00 241044390.55 -1500000.00 1260024039.76 1306066395.60 5213580233.91
Add: Adjustment for change in accounting
policy
Adjustment for correction of previous
error
Other adjustments -6088070.45 -6088070.45
2. Balance as at the beginning of the year 2407945408.00 241044390.55 -1500000.00 1260024039.76 1299978325.15 5207492163.46
3. Increase/ decrease in the period (“-” for 100185360.20 100628.36 -749189478.71 -648903490.15
153Konka Group Co. Ltd. Annual Report 2023
decrease)
3.1 Total comprehensive income 100628.36 -749189478.71 -749088850.35
3.2 Capital increased and reduced by
owners 100185360.20 100185360.20
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 100185360.20 100185360.20
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or
shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share
capital) from capital reserves
3.4.2 Increase in capital (or share
capital) from surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit
schemes transferred to retained earnings
154Konka Group Co. Ltd. Annual Report 2023
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 period 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
2022
Unit: RMB
2022
Other equity instruments O
Item Less: Other t
Share capital Perpetu Capital reserves Treasury comprehensive
Specific h
reserve Surplus reserves Retained earnings e Total owners’ equityPreferre
d shares al Other
stock income r
bonds
1. Balance as at the end of the prior year 2407945408.00 110696992.60 -1500000.00 1260024039.76 2724187542.59 6501353982.95
Add: Adjustment for change in
accounting policy
Adjustment for correction of previous
error
Other adjustments 23.10 23.10
155Konka Group Co. Ltd. Annual Report 2023
2. Balance as at the beginning of the year 2407945408.00 110696992.60 -1500000.00 1260024039.76 2724187565.69 6501354006.05
3. Increase/ decrease in the period (“-”
for decrease) 130347397.95 -1418121170.09 -1287773772.14
3.1 Total comprehensive income -1297723899.69 -1297723899.69
3.2 Capital increased and reduced by
owners 130347397.95 130347397.95
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 130347397.95 130347397.95
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
156Konka Group Co. Ltd. Annual Report 2023
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 period 2407945408.00 241044390.55 -1500000.00 1260024039.76 1306066395.60 5213580233.91
157Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
I. Company Profile
1. Establishment
Konka Group Co. Ltd. (hereinafter referred to as “the Company” and the “Group” when including
subsidiaries) is a joint-stock limited company reorganized from the former Shenzhen Konka
Electronic Co. Ltd. in August 1991 upon approval of the People’s Government of Shenzhen
Municipality and has its ordinary shares (A-share and B-share) listed on Shenzhen Stock
Exchange with prior consent from the People’s Bank of China Shenzhen Special Economic Zone
Branch. On 29 August 1995 the Company was renamed to “Konka Group Co. Ltd.” (Credibility
code: 914403006188155783) with its main business electronic industry. And now the headquarters
locates in No. 28 of No. 12 of Keji South Rd. Science & Technology Park Yuehai Street
Nanshan District Shenzhen Guangdong Province.
2. Share capital
After the distribution of bonus shares allotments increased share capital and new shares issued
over the years as of 31 December 2023 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 Group was mainly engaged in consumer electronics and semiconductor businesses
conducting the production and sales of colour TVs white goods optoelectronic display storage
and printed circuit Boards etc.
4. The financial statements contained herein have been approved for issue by the Board of
Directors of the Company on 29 March 2024.II. Consolidation scope
The Company has a total of 116 subsidiaries included in the consolidation scope including
Shenzhen Konka Electronics Technology Co. Ltd. Anhui Konka Electronic Co. Ltd. and
Dongguan Konka Electronic Co. Ltd. The consolidation scope of the Company for the Reporting
Period decreased by 11 households including Sichuan Hongxinchen Real Estate Development Co.Ltd . Chongqing Kangxingrui Environmental Technology Co. Ltd. etc. due to losing control or
cancellation compared to the same period of last year.For details please refer to Note 8 “Changes in the consolidation scope” and Note 9 "Equity in
Other Entities".A check list of corporate names and their abbreviations mentioned in this Report
158Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
1 Shenzhen Konka Electronics Technology Co. Ltd. Electronics Technology
2 Anhui Konka Zhilian E-Commerce Co. Ltd. Anhui Zhilian
3 Nantong Haimen Konka Smart Technology Co. Ltd. Haimen Konka
4 Chengdu Konka Smart Technology Co. Ltd. Chengdu Konka Smart
5 Chengdu Konka Electronic Co. Ltd. Chengdu Konka Electronic
6 Nantong Hongdin Smart Technology Co. Ltd. Nantong Hongdin
7 Shenzhen Kangcheng Technology Innovation and DevelopmentCo. Ltd. Shenzhen Kangcheng
8 Xiaojia Technology Co. Ltd. Xiaojia Technology
9 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun Smart
10 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang Kangshun Renewable
11 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
12 Chuzhou Konka Precision Intelligent Manufacturing TechnologyCo. Ltd. Chuzhou Konka
13 GuangDong XingDa HongYe Electronic Co. Ltd. XingDa HongYe
14 Shenzhen Konka Circuit Co. Ltd. Konka Circuit
15 Suining Konka Flexible Electronic Technology Co. Ltd. Konka Flexible Electronic
16 Suining Konka Hongye Electronics Co. Ltd. Konka Hongye Electronics
17 Boluo Konka Precision Technology Co. Ltd. Boluo Precision
18 Boluo Konka PCB Co. Ltd. Boluo Konka
19 Anhui Konka Tongchuang Electrical Appliances Co. Ltd. Anhui Tongchuang
20 Jiangsu Konka Smart Electrical Appliances Co. Ltd. Jiangsu Konka Smart
21 Anhui Konka Electrical Appliance Technology Co. Ltd. Anhui Electrical Appliance
22 Henan Frestec Refrigeration Appliance Co. Ltd. Frestec Refrigeration
23 Henan Frestec Electrical Appliances Co. Ltd. Frestec Electrical Appliances
24 Henan Frestec Household Appliances Co. Ltd. Frestec Household Appliances
159Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
25 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home
26 Shenzhen Konka Investment Holdings Co. Ltd. Konka Investment
27 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka Technology Park
28 Shenzhen Konka Capital Equity Investment Management Co. Ltd. Konka Capital
29 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong
30 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial
31 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology
32 Konka Electronic Material Technology (Shenzhen) Co. Ltd. Konka Electronic Material
33 Beijing Konka Electronic Co. Ltd. Beijing Konka Electronic
34 Tianjin Konka Technology Co. Ltd. Tianjin Konka
35 Suining Konka Industrial Park Development Co. Ltd. Suining Konka Industrial Park
36 Suining Konka Electronic Technological Innovation Co. Ltd. Suining Electronic TechnologicalInnovation
37 Shanghai Konka Industrial Co. Ltd. Shanghai Konka
38 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin
39 Shenzhen Konka Mobile Interconnection Technology Co. Ltd. Mobile Interconnection
40 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka
41 Yibin Konka Smart Technology Co. Ltd. Yibin Smart
42 Shenzhen KONSEMI Co. Ltd. Shenzhen KONSEMI
43 Chongqing Konka Technology Development Co. Ltd. Chongqing Konka
44 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory (Shenzhen)
45 Kowin Memory Technology (Hong Kong) Co. Limited Kowin Memory (Hong Kong)
46 Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd. Konka Xinyun Semiconductor
47 Konka Cross-border (Hebei) Technology Development Co. Ltd. Konka Cross-border (Hebei)
48 Shenzhen Nianhua Enterprise Management Co. Ltd. Shenzhen Nianhua
160Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
49 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Huazhong
50 Shenzhen Wankaida Science and Technology Co. Ltd. Wankaida
51 Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd. Shenzhen Chuangzhi ElectricalAppliances
52 Suining Jiarun Property Co. Ltd. Suining Jiarun Property
53 Anhui Konka Electronic Co. Ltd. Anhui Konka
54 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade
55 Shenzhen Konka Telecommunications Technology Co. Ltd. Telecommunication Technology
56 Konka Mobility Co. Limited Konka Mobility
57 Dongguan Konka Electronic Co. Ltd. Dongguan Konka
58 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart
59 Chongqing Konka Optoelectronic Technology Co. Ltd. Chongqing OptoelectronicTechnology
60 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun
61 Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd. Yibin Kangrun Medical
62 Yibin Kangrun Environmental Protection Power Generation Co. Yibin Kangrun EnvironmentalLtd. Protection
63 Ningbo Khr Electric Appliance Co. Ltd. Ningbo Khr Electric Appliance
64 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka
65 Jiangxi High Transparent Substrate Material Technology Co. Ltd. Jiangxi High TransparentSubstrate
66 Jiangsu Konka Special Material Technology Co. Ltd. Jiangsu Konka Special Material
67 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystalline
68 Konka Huanjia Environmental Technology Co. Ltd. Konka Huanjia
69 Konka Huanjia (Henan) Environmental Technology Co. Ltd. Konka Huanjia (Henan)
70 Shanxi Konka Intelligent Appliance Co. Ltd. Shanxi Konka Intelligent
71 Shenzhen Konka Pengrun Technology & Industry Co. Ltd. Pengrun Technology
161Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
72 Jiaxin Technology Co. Ltd. Jiaxin Technology
73 Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd. Konka Ronghe
74 Chongqing Kangxingrui Environmental Technology Co. Ltd. Chongqing Kangxingrui
75 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune
76 Jiali International (Hong Kong) Limited Jiali International
77 Sichuan Kangjiatong Technology Co. Ltd. Kangjiatong
78 Kanghong (Yantai) Environmental Technology Co. Ltd. Kanghong (Yantai)Environmental
79 Jiangkang (Shanghai) Technology Co. Ltd. Jiangkang (Shanghai)Technology
80 Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd. Konka Intelligent Manufacturing
81 Hainan Konka Technology Co. Ltd. Hainan Konka Technology
82 Konka Ventures Development (Shenzhen) Co. Ltd. Konka Ventures
83 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator
84 Yantai Konka Healthcare Enterprise Service Co. Ltd. Yantai Konka
85 Chengdu Anren Konka Cultural and Creative IncubatorManagement Co. Ltd. Chengdu Anren
86 Guiyang Konka Enterprise Service Co. Ltd. Konka Enterprise Service
87 Shenzhen Konka Eco-Development Investment Co. Ltd. Konka Eco-Development
88 Konka (Europe) Co. Ltd. Konka Europe
89 Hong Kong Konka Limited Hong Kong Konka
90 Hongdin International Trading Limited Hongdin Trading
91 Konka North America LLC Konka North America
92 Kanghao Technology Co. Ltd. Kanghao Technology
93 Hongdin Invest Development Limited Hongdin Invest
94 Chain Kingdom Memory Technologies Co. Limited Chain Kingdom MemoryTechnologies
162Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
95 Chain Kingdom Semiconductor (Shaoxing) Co. Ltd. Chain Kingdom Semiconductor(Shaoxing)
96 Hongjet (Hong Kong) Company Limited Hongjet
97 Chongqing Xinyuan Semiconductor Co. Ltd. Chongqing XinyuanSemiconductor
98 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
99 Shenzhen Kanghong Dongsheng Investment Partnership (LimitedPartnership) Kanghong Dongsheng
100 Guizhou Konka New Material Technology Co. Ltd. Guizhou Konka New MaterialTechnology
101 Guizhou Kanggui Energy Co. Ltd. Guizhou Kanggui Energy
102 Guangdong Xinwei Semiconductor Co. Ltd. Guangdong Xinwei
103 Guizhou Kanggui Material Technology Co. Ltd. Guizhou Kanggui MaterialTechnology
104 Nantong Kanghai Technology Industry Development Co. Ltd. Nantong Kanghai
105 Chongqing Kangyiyun Business Operation Management Co. Ltd. Chongqing Kangyiyun
106 Jiangxi Konka High-tech Park Operation and Management Co.Ltd. Jiangxi Konka High-tech Park
107 Shangrao Konka Electronic Technology Innovation Co. Ltd. Shangrao Konka ElectronicTechnology Innovation
108 Guizhou Konka New Energy Material Technology Co. Ltd. Guizhou Konka New Energy
109 Zhejiang Konka Electronics Co. Ltd. Zhejiang Konka Electronic
110 Zhejiang Konka Technology Industry Development Co. Ltd. Zhejiang Konka TechnologyIndustry
111 Sichuan Hongxinchen Real Estate Development Co. Ltd. Sichuan Hongxinchen
112 Xi'an Konka Intelligent Appliance Co. Ltd. Xi'an Konka Intelligent
113 Xi'an Konka Network Technology Co. Ltd. Xi'an Konka Network
Xi'an Kanghong Technology
114 Xi'an Kanghong Technology Industry Development Co. Ltd.
Industry
Xi'an Konka Intelligent
115 Xi'an Konka Intelligent Technology Development Co. Ltd.
Technology
163Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
116 Anhui Konka Low Carbon Technology Co. Ltd. Anhui Konka Low Carbon
Shenzhen Kanghong Xintong Investment Partnership (Limited
117 Kanghong Xintong
Partnership)
118 Songyang Konka Smart Industry Operation Management Co. Ltd. Songyang Industry Operation
119 Shenzhen Kangyan Technology Co. Ltd. Kangyan Technology
120 Konka Photovoltaic Technology Co. Ltd. Konka Photovoltaic Technology
121 Songyang Konka Intelligent Technology Development Co. Ltd. Songyang Konka Intelligent
122 Konka North China (Tianjin) Technology Co. Ltd. Konka North China
123 Zhongshan Kanghong Electronic Technology Co. Ltd. Zhongshan Kanghong
124 Shenzhen Konka Digital Technology Development Co. Ltd. Digital Technology
Chongqing Kangxingrui
125 Chongqing Kangxingrui Scraped Automobile Recycling Co. Ltd.
Automobile Recycling
Kangxingrui Renewable
126 Chongqing Kangxingrui Renewable Resources Co. Ltd.
Resources
127 Chongqing Fangbing Real Estate Co. Ltd. Chongqing Fangbing Real Estate
III. Basis for the Preparation of Financial Statements
1. Basic for the preparation
The Group's financial statements were prepared in accordance with the Accounting Standards for
Business Enterprises promulgated by the Ministry of Finance as well as guidelines on accounting
standards for business enterprises announcements on interpreting the accounting standards for
business enterprises and other related regulations (hereinafter collectively referred to as the
"Accounting Standards for Business Enterprises") as well as the disclosure regulations of the General
Provisions on Financial Reporting No. 15 for Companies Publicly Issuing Securities (revised in 2023)
by the China Securities Regulatory Commission (hereinafter referred to as the "CSRC").
2. Going-concern
The Group has evaluated its ability to continue as a going concern for 12 months since the end of
the Reporting Period and has not found any matters or situations that raise significant doubts
about its ability to continue as a going concern. Therefore the financial statements are presented
on a going concern basis.
164Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
IV. Important Accounting Policies and Estimations
Specific accounting policies and accounting estimates: The specific accounting policies and
accounting estimates formulated by the Group according to the actual production and operation
characteristics include provisions for bad debts of accounts receivable provisions for inventory
depreciation depreciation of fixed assets revenue recognition and measurement etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises which factually accurately and completely
present the Group’s financial positions on 31 December 2023 business results and cash flows and
other relevant information for 2023.
2. Fiscal Period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to
the Gregorian calendar.
3. Operating Cycle
The normal operating cycle refers to the period from the purchase of assets for processing to the
realization of cash or cash equivalents by the Group. An operating cycle for the Group is 12
months which is also the classification criterion for the liquidity of its assets and liabilities.
4. Recording Currency
The Group adopted RMB as the bookkeeping base currency.
5. Methodology for Determining Materiality Criteria and Basis for Selection
The Group prepares and discloses financial statements adhering to the principle of materiality. The
disclosures in the notes to the financial statements cover matters involving judgments about
materiality criteria the methods for determining materiality thresholds and the bases for selecting
these criteria:
Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements
Significant individually bad Note VI-4. Accounts Individual amount exceeding RMB50000000
165Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements
debt provisioned receivables receivable (2)
Receivables with significant
amount of bad debt provision Note VI-4. Accounts
Individual amount exceeding RMB10 million
recovered or reversed during receivable (3)
the period
Significant write-offs of
Note VI-4. Accounts
receivables during the period Individual amount exceeding RMB10 million
receivable (4)
Write-offs
Significant accounts payable Note VI-28. Accounts
Individual amount exceeding RMB10 million
aged over 1 year payable
Significant receipts in advance Note VI-29;
and contractual Note VI-30;
liabilities/projected Individual amount exceeding RMB10 million
Note VI-33;
liabilities/other payables aged
Note VI-41
over 1 year
Note VI-18.Significant construction in Increase or decrease in a single asset during the year
Construction in
progress project or a balance exceeding RMB0.1 billion
progress (2)
6. Accounting Treatment Methods for Business Combinations under the Same Control or
not under the Same Control
(1) Business Combinations under the Same Control
A business combination involving entities under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination and that control is not transitory.As the combining party the assets and liabilities obtained by the Group in a business combination
166Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 (or aggregate nominal
amount of shares issued) the capital reserve shall be adjusted. If the capital reserve is not
sufficient to be offset the retained earnings shall be adjusted.
(2) Business Combinations not under the Same Control
A business combination involving entities not under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties
both before and after the combination.As purchaser the identifiable assets liabilities and contingent liabilities of the acquiree acquired
in the business combination under different control shall be measured at fair value on the
acquisition date. The 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 merger costs 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.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial
Statements
The scope of consolidation for the consolidated financial statements of the Group is based on
control including the Company and all its subsidiaries (including enterprises divisible parts of
investees and structured entities controlled by the Company). The Group assesses control based
on whether it has power over the investee has exposure or rights to variable returns from its
involvement with the investee and has the ability to use its power over the investee to affect the
amount of the investor's returns.The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Group during the preparation of the consolidated financial statements
where the accounting policies and the accounting periods are inconsistent between the Group and
subsidiaries.The impact of internal transactions between the Company and its subsidiaries as well as between
subsidiaries and each other was offset in consolidation. The shares of the subsidiary's owner's
equity that do not belong to the parent Group and the shares of minority shareholders' equity in
167Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
current net profit and loss other comprehensive income and total comprehensive income shall be
respectively listed in the consolidated financial statement "Minority shareholders' equity minority
shareholders' profit and loss other comprehensive income that belongs to minority shareholders
and total comprehensive income that belongs to minority shareholders".For subsidiaries acquired through merger of enterprises under the same control their operating
results and cash flows are included in the consolidated financial statements from the beginning of
the current merger period. When preparing the comparative consolidated financial statements the
relevant items in the financial statements of the previous year shall be adjusted as if the
consolidated reporting entity had existed since the final controlling party began to control it.The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired if the equity of the invested organization
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
the same control is acquired step by step through multiple transactions and finally form the
business combination when preparing the consolidated statement it shall be deemed as the
adjustment is made in the current state when the final controlling party starts to control. And when
compiling the comparative report the assets and liabilities of the merged party shall be merged
into the comparative statement of the consolidated financial statements of the consolidated Group
without any earlier than the time when the Group and the merged party are under the control of the
ultimate controlling party and the combined net increased assets shall be adjusted to the relevant
items under owners' equity in the comparative statements. In order to avoid the re-calculation of
the net assets value of the merged party the long-term equity investment held by the Group before
the merger the confirmed relevant profit and loss on the same party with the Group and the
merged party on the date of acquisition of the original equity from the final control date to the
merger date and changes of other comprehensive income and other net assets shall offset the
beginning retained earnings and current profits and losses of the comparative statement period
respectively.For subsidiaries acquired through business combination under the different control the operating
results and cash flow shall be included in the consolidated financial statements from the date when
the Group obtains the control right. When preparing the consolidated financial statements the
financial statements of the subsidiaries shall be adjusted on the basis of the fair value of the
identifiable assets liabilities and contingent liabilities determined on the acquisition date.The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired if the equity of the invested organization
not under the same control is successively obtained through several transactions and eventually the
168Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
different control is acquired step by step through multiple transactions and eventually form the
business combination when preparing the consolidated statement the equity of the investee held
before the purchase date is re-measured according to the fair value of the equity on the purchase
date and the difference between the fair value and its book value is included in the current
investment income. The equity of the acquiree held before the relevant purchase date involves
other comprehensive income under the equity method and other changes in owner's equity other
than net profit and loss other comprehensive income and profit distribution which are converted
into investment profit and loss in the current period of the purchase date except for other
comprehensive income arising from the remeasurement of defined benefit plans's net liabilities or
changes in net assets by the investee.The Group partially disposes of long-term equity investments in subsidiaries without losing
control when preparing the consolidated financial statements the difference between the disposal
price and the share of net assets that the subsidiaries have continuously calculated since the date of
purchase or the date of consolidation is corresponding to the disposal of long-term equity
investments. The capital premium or equity premium is adjusted. If the capital reserve is
insufficient to offset the retained earnings are adjusted.If the Group loses control over the investee due to the disposal of some equity investments and
other reasons the remaining equity shall be re-measured at its fair value on the date of loss of
control when preparing the consolidated financial statements. The difference between the sum of
the consideration obtained from the disposal of equity and the fair value of the remaining equity
minus the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger is included in
the investment profit and loss of the current period when the control right is lost and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment etc.will be transferred to the current investment profit and loss when the control right is lost.If the Group disposes of the equity investment in a subsidiary Group step by step through multiple
transactions until the loss of control right if the transactions of the disposal of the equity
investment in a subsidiary Group until the loss of control right belong to a package transaction the
transactions shall be treated as transactions of the disposal of the subsidiary Group and the loss of
control right for accounting. However the difference between the disposal price and the share of
the subsidiary's net assets corresponding to the disposal investment before the loss of control right
is recognized as other comprehensive income in the consolidated financial statements and is
transferred to the investment profit and loss of the current period when the control right is lost.
8. Classification of Joint arrangements and Accounting Treatment of Joint Operations
169Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
The Group classifies joint arrangements into joint operations and joint ventures. For a joint
operation the Group as a joint operator recognizes the assets and liabilities that it holds and bears
in the joint operation and recognizes the jointly-held assets and jointly-borne liabilities according
to the Group’s stake in the joint operation; recognizes relevant income and expense according to
the Group’s stake in the joint operation. When the Group purchases or sells the assets not
constituting business with the joint operation the Group only recognized the share of the other
joint operators in the gains and losses arising from the transaction.
9. Cash and Cash Equivalents
In the Group’s understanding the cash in the cash flow statement includes cash on hand and
deposits that can be used for cover the cash equivalents in the cash flow statement include high
circulating investments held within three months which are easily convertible into known amount
of cash and whose risks in change of value are minimal.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency transaction
Foreign currency transactions of the Group are initially recognized at the exchange rate at the
beginning of the month of the transaction date (usually referring to the middle rate of the foreign
exchange rate announced by the People's Bank of China on the day the same below) converting
the foreign currency amount into the functional currency amount. On the balance sheet date the
monetary items in foreign currency were converted into RMB at the spot exchange rate on balance
sheet date. Except the exchange difference arising from special foreign-currency borrowing for the
purpose of construction or production of assets meeting capitalization conditions treated in the
principle of capitalization the conversion difference was directly included in the current 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.
170Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
11. Financial Instruments
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.The Company's financial assets (or a portion of a financial asset or a part of a group of similar
financial assets) shall be derecognized when meeting any of the following conditions meaning
they are removed from the accounts and the balance sheet:1) The right to receive cash flows from
the financial asset expires; 2) The financial asset is transferred and the Group has transferred
substantially all risks and rewards of ownership of the financial asset; 3) The financial asset is
transferred and the Group has neither transferred nor retained substantially all risks and rewards
of ownership and has not retained control over the financial asset.In case of current obligation of financial liabilities (or partial financial liabilities) being terminated
derecognition of such financial liabilities (or partial financial liabilities) is conducted by the Group.If the Group (borrower) concludes an agreement with the lender to replace existing financial
liabilities with new ones and contact terms of new financial liabilities are different from those of
existing financial liabilities derecognition of existing financial liabilities and recognition of new
financial liabilities shall be conducted. In case of material alteration of contract terms of existing
financial liabilities (partial financial liabilities) by the Group derecognition of existing financial
liabilities and recognition of new financial liabilities as per modified terms shall be conducted. In
case of derecognition of financial liabilities (partial financial liabilities) the Group includes the
balance between its carrying value and payment consideration into the current profit or loss.All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.
(2) Classification and measurement of financial assets
The Group classifies the financial assets into financial assets measured at amortized cost financial
assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets
management and characteristics of contractual cash flow of financial assets.The Group classified the financial assets meeting the following conditions at the same time as
financial assets at amortized cost: * The business mode of the Group to manage the financial
assets targets at collecting the contractual cash flow. * The contract of the financial assets
stipulates that the cash flow generated in the specific date is the payment of the interest based on
the principal and outstanding principal amount. These financial assets initially measured at fair
171Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
value and relevant transaction cost shall be included into the initial recognized amount and
subsequently measured at amortized cost. Except for those designated to be hedge items the
difference between the initial recognized amount and the amount due shall be amortized at actual
interest rate and their amortization impairment and exchange gain and loss as well as gains or
losses arising from derecognition shall be recorded into the current profit or loss.The Group classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: * The Business mode for
managing financial assets of the Group takes contract cash flow collected as target and selling as
target. * The contract of the financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. These
financial assets initially measured at fair value and relevant transaction cost shall be included into
the initial recognized amount. Except for those designated as hedged items as for these financial
assets except for gains or losses on credit impairment exchange gain and loss and interest of
financial assets measured at actual interest rate other gains or losses generated shall be recorded
into other comprehensive income. When derecognized the accumulated gains and losses
originally recorded into other comprehensive income shall be transferred out into the current profit
or loss.The Group recognizes interest income according to the effective interest rate method. Interest
income is calculated and determined according to the book balance of the financial asset
multiplied by the actual interest rate except for the following circumstances: * For the financial
asset with credit impairment that has been purchased or originated from the initial recognition the
interest income is calculated and determined according to the amortized cost of the financial asset
and the actual interest rate adjusted by credit. * For financial assets purchased or originated that
have not suffered credit impairment but have suffered credit impairment in subsequent periods the
interest income shall be calculated and determined according to the amortized cost and actual
interest rate of the financial assets in subsequent periods.The Group designates non-transactional investment in equity instruments as financial assets at fair
value through other comprehensive income. Those designated non-transactional investment in
equity instruments by the Group is initially measured at fair value and relevant transaction cost
shall be recorded into the initial recognized amount. Except for dividends (excluding those
belonging to recovery of investment cost) which shall be recorded into the current profit or loss
other relevant gains and losses (including exchange gains and losses) shall be recorded into other
comprehensive income and cannot be transferred into the current profit or loss subsequently.When derecognized the accumulated gains or losses originally recorded into other comprehensive
income shall be transferred out into retained earnings. Equity instrument investments measured at
172Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
fair value through other comprehensive income included: Equity investments to be held in the
long term as planned by the Group for strategic purpose with no control joint control or
significance influence and with no active market quotation.The Group classifies financial assets not belonging to above two as financial assets at fair value
through profit or loss which shall be initially measured at fair value and relevant transaction cost
shall be directly recorded into the current profit or loss. Gains or losses arising from these
financial assets shall be recorded into the current profit or loss.The contingent consideration recognized by the Group in the business combination not under the
same control which constitutes a financial asset shall be classified as the financial asset at fair
value through profit or loss.
(3) Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair
value through profit or loss and other financial liabilities.Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
and financial liabilities designated at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss. The subsequent measurement shall be at
fair value and gains or losses arising from changes in fair value and the dividends and interest
expense related to the financial liability shall be the current profit or loss.Other financial liabilities shall be subsequently measured at amortized cost with actual interest rate.The Group classifies financial liabilities except for the following items as financial liabilities at
amortized cost:* Financial liabilities at fair value through profit or loss including held-for-trading
financial liabilities (including the derivative instruments belonging to financial liabilities) and
designated financial liabilities at fair value through profit or loss. * Financial liabilities arising
from the transfer of financial assets not meeting the derecognition conditions or continuous
involvement in the transferred financial assets. * Financial guarantee contract not belonging to
cases of above * or * and loan commitments at interest rate lower than the market rate not
belonging to the case in* .The Group treats the financial liability arising from contingent consideration recognized as the
purchase party in the business combination not under the same control at fair value and changes
thereof shall be recorded into the current profit or loss.
(4) Impairment of Financial Instrument
The Group needs to confirm that the financial assets subject to the impairment loss are the
financial assets measured based on the amortized cost the debt instrument investment measured
173Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 Group shall calculate and withdraw corresponding impairment
provisions and recognize corresponding credit impairment losses according to applicable expected
credit loss measurement methods (general methods or simplified methods) with the expected
credit loss as the basis.Credit loss refers to the difference between all receivable contract cash flows and all expected cash
flows that are discounted to the present value based on the original actual interest rate -- the
present value of all cash shortfall. However for the purchased or original financial assets subject
to the credit impairment the Group shall realize the discounting based on the actual interest rate
subject to the credit adjustment.General methods applied to measure the expected credit loss can be described as: the Group shall
evaluate whether the credit risk of the financial assets (including the contract assets and other
applicable items; the same below) increases remarkably after the initial recognition on the balance
sheet day; if the credit risk increases remarkably after the initial recognition the Group shall
measure the provision for loss based on the specific expected credit loss amount during the entire
period of existence; if not the Group shall measure the provision for loss based on the specific
expected credit loss amount in the following 12 months. While evaluating the expected credit loss
the Group shall take all reasonable and well-founded information into consideration including the
forward-looking information.For the financial instrument of lower credit risk on the balance sheet day the Group shall assume
that its credit risk does not increase remarkably after the initial recognition and corresponding
provision for loss shall be measured according to the expected credit loss in the following 12
months.
2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial
Recognition
If any financial assets’ probability of default within the expected period of existence determined
on the balance sheet day is obviously higher than that within the expected period of existence
determined during the initial recognition it shall indicate the remarkable increase of the financial
174Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
assets’ credit risk. Unless it is under special circumstances the Group shall adopt various
variations in the default risk in the following 12 months as the reasonable basis for estimating
corresponding variations in the default risk within the entire period of existence and determining
whether the credit risk increases remarkably after the initial recognition.
3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk the Group shall separately evaluate
its credit risk including the receivables from related parties receivables involved in any dispute
with the other party or any lawsuit and arbitration and receivables with obvious evidence showing
that the debtor cannot fulfill the due payment obligation etc.Except for the financial assets whose credit risk shall be separately evaluated the Group shall
divide these financial assets into different combinations based on the specific risk features on
which basis corresponding credit risks can be evaluated.
4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period the Group shall calculate the expected credit losses of various financial
assets. If the expected credit loss is higher than the carrying amount of its current impairment
provision the difference shall be recognized as the impairment loss; if lower the difference shall
be recognized as the gain from the impairment.
(5) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met: * the
rights to receive cash flows from the asset have expired; * the enterprise has transferred its rights
to receive cash flows from the asset to a third party under a pass-through arrangement; or * 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
175Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally
included in other comprehensive income that should be apportioned to the derecognition part And
the payment of interest based on the outstanding principal amount) and the difference between the
total book value of the aforesaid financial assets allocated is included in the current profit and loss.
(6) The distinction between financial liabilities and equity instruments and related treatment
methods
The Group distinguishes the financial liabilities and equity instruments according to the following
principles: (1) If the Group cannot unconditionally avoid performing a contractual obligation by
delivering cash or other financial assets the contractual obligation meets the definition of financial
liabilities. Although some financial instruments do not explicitly include the terms and conditions
of the obligation to deliver cash or other financial assets they may indirectly form contractual
obligations through other terms and conditions. (2) If a financial instrument must be settled with
or can be settled with the Group's own equity instrument it is necessary to consider whether the
Group's own equity instrument used to settle the instrument is used as a substitute for cash or other
financial assets or to enable the holder of the instrument to enjoy the residual equity in the assets
of the issuer after deducting all liabilities. If it belongs to the former condition the instrument is
the financial liability of the issuer; if it belongs to the latter condition the instrument is the equity
instrument of the issuer. In some cases a financial instrument contract requires the Group to use or
use its own equity instrument to settle the financial instrument in which the amount of contractual
rights or contractual obligations is equal to the number of its own equity instruments available or
to be delivered multiplied by its fair value at the time of settlement regardless of whether the
amount of contractual rights or obligations is fixed whether it is entirely or partially based on
changes in variables other than the market price of the Group's own equity instruments the
contract shall be classified as a financial liability.In classifying financial instruments (or their components) in the consolidated statement the Group
has taken into account all terms and conditions reached between the Group members and the
holders of financial instruments. If the Group as a whole undertakes the obligation to deliver cash
other financial assets or settle accounts in other ways that cause the instrument to become a
financial liability due to the instrument the instrument shall be classified as a financial liability.If financial instruments or their components are financial liabilities the Group will include interest
dividends (or dividends) gains or losses and gains or losses arising from redemption or
refinancing etc. in the current profits and losses.
176Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
If financial instruments or their components are equity instruments when they are issued
(including refinancing) repurchased sold or cancelled the Group will treat them as changes in
equity and will not recognize changes in the fair value of equity instruments.
(7) Offsetting financial assets and financial liabilities
The Group’s financial assets and liabilities shall be separately presented in the balance sheet and
not set off each other. But when meeting the following conditions at the same time the net amount
after offset shall be presented in the balance sheet: (1) The Group has the statutory right to set off
recognized amount which is currently executable; (2) The Group plans to settle with the net
amount or realize the financial asset and pay off the financial liability simultaneously.
12. Notes Receivable
For notes receivable the Group shall measure the provision for loss based on the specific expected
credit loss during the entire period of existence. According to the credit risk characteristics thereof
except those with separate evaluation of credit risk notes receivable can be divided into different
combinations:
Item Basis
Bank Acceptance The Accepter shall be the bank with high credit level and low risks
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 Group
shall measure the provision for loss according to the specific expected credit loss amount within
the entire period of existence.For account receivable contract assets and lease payment receivable including significant
financing composition the Group shall always measure the provision for loss according to the
specific expected credit loss amount within the period of existence.Except the account receivable and contract assets whose credit risks shall be separately evaluated
the Group shall divide them into different combinations based on the specific credit risks:
Item Basis
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.
177Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Basis
Related party The accounts receivable from the other entities within the consolidation
combination scope
14. Accounts Receivable Financing
The Group’s accounts receivable financing is based on expected credit losses and provision is
made for depreciation reserves in accordance with the expected credit loss measurement method
for notes receivable.
15. Other Receivables
The Group measures the loss reserves on other receivables in accordance with the following
circumstances: a) For financial assets whose credit risk has not significantly increased since the
initial recognition the Group measures the loss reserves at the amount of expected credit losses
for the next 12 months; b) For financial assets whose credit risk has increased significantly since
the initial recognition the Group measures the loss reserves at an amount equal to the expected
credit losses for the entire period of the financial instrument; c) For financial assets purchased or
originated from credit impairment the Group measures the loss reserves at an amount equal to the
expected credit losses over the entire period of the financial instrument. Except other receivables
whose credit risks shall be separately evaluated the Group shall divide them into different
combinations based on the specific credit risk features:
Item Basis
Aging
This portfolio is other receivables with aging as the credit risk feature.Combination
This combination shall regard other receivables of extremely low risk (including
Low Risk
the revolving fund the cash deposit and the guarantee deposit) as the credit risk
Combination
feature.Related party
Other receivables from the other entities within the consolidation scope
combination
16. Long-term Receivables
By determining whether the credit risk of long-term account receivables increases remarkably
after the initial recognition the Group shall measure the impairment loss based on the specific
178Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
expected credit loss in the following 12 months or during the entire period of existence. Except
long-term account receivables whose credit risks shall be separately evaluated the Group shall
divide them into different combinations based on the specific credit risk features:
Item Basis
Financing Lease Regarding the long-term receivables related to the financing lease as the
Combination credit risk characteristics
17. Inventories
The Group's inventories mainly include raw materials products in process semi-finished products
Products on handand 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
179Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
losses of the current period.
18. Contract Assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the Group to receive consideration after transferring goods to
customers and this right depends on factors other than the passage of time. If the Group sells two
clearly distinguishable products to customers it has the right to receive payment because one of
the products has been delivered but the payment is also dependent on the delivery of the other
product the Group has the right to receive payment as a contract assets.
(2) Determination method and accounting treatment method of expected credit loss of contract
assets
The method for determining the expected credit losses of contract assets involves measuring the
impairment losses of contract assets by referencing the method used for the impairment loss
measurement of receivables as previously described.The Group calculates the expected credit loss of contract assets on the balance sheet date. If the
expected credit loss is greater than the book value of the current contract asset impairment
provision the Group will recognize the difference as an impairment loss and debit the "asset
impairment loss". Credited "Contract asset impairment provision". On the contrary the Group
recognizes the difference as an impairment gain and keeps the opposite accounting records.If the Group actually incurs credit losses and determines that the relevant contract assets cannot be
recovered and the written-off is approved the "contract asset impairment reserve" is debited and
the "contracted asset" is credited based on the approved write-off amount. If the written-off
amount is greater than the provision for loss that has been withdrawn the "asset impairment loss"
is debited based on the difference.
19. Assets Relating to Contract Costs
(1) The method of determining the amount of assets related to contract costs
The Group’s assets related to contract costs include contract performance costs and contract
acquisition costs.The contract performance cost that is the cost incurred by the Group for the performance of the
contract does not fall within the scope of other accounting standards and meets the following
conditions at the same time as the contract performance cost is recognized as an asset: the cost
and a current or expected contract Directly related including direct labor direct materials
manufacturing expenses clearly the cost borne by the customer and other costs incurred only due
180Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
to the contract; this cost increases the Group's future resources for fulfilling its performance
obligations; This cost is expected to be recovered.The contract acquisition cost that is the incremental cost incurred by the Group to obtain the
contract is expected to be recovered and is recognized as an asset as the contract acquisition cost;
if the asset amortization period does not exceed one year it is included in the current profit and
loss when it occurs. Incremental cost refers to the cost (such as sales commission etc.) that the
Group will not incur without obtaining the contract. The Group's expenses incurred in obtaining
the contract other than the expected incremental cost that can be recovered (such as travel
expenses incurred regardless of whether the contract is obtained etc.) are included in the current
profit and loss when they are incurred but it is clearly borne by the customer except.
(2) Amortization of assets related to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the commodity
revenue recognition related to the asset and included in the current profit and loss.
(3) Impairment of assets related to contract costs
When the Group determines the impairment loss of assets related to contract costs it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant business accounting standards; then based on their book value
higher than the Group’s transfer and If the difference between the remaining consideration that the
asset-related commodity is expected to obtain and the estimated cost incurred for the transfer of
the relevant commodity the excess shall be provided for impairment and recognized as an asset
impairment loss.If the depreciation factors of the previous period have changed and the aforementioned difference
is higher than the book value of the asset the original provision for asset impairment shall be
reversed and included in the current profit and loss but the book value of the asset after the
reversal shall not exceed Assuming no provision for impairment is made the book value of the
asset on the date of reversal.
20. Long-term Equity Investments
The Group's long-term equity investments mainly consist of investments in subsidiaries
associated enterprises and joint ventures.The Group’s judgment on joint control is based on the fact that all participants or a combination of
participants collectively control the arrangement and that the policies of the activities related to the
arrangement shall be unanimously agreed by those participants who.The Group is generally considered to have a significant influence on the investee when it owns
181Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
directly or indirectly through a subsidiary above 20% but below 50% of the voting rights of the
investee. If the Group holds less than 20% of the voting rights of the investee it also needs to
judge whether the Group has a significant influence on the investee by taking into account the
facts and circumstances such as having representatives on the board of directors or similar
authority of the investee or participating in the process of formulating financial and operating
policies of the investee or having major transactions with the investee or sending management
personnel to the investee or providing key technical information to the investee.If control over the investee is formed it is a subsidiary of the Group. For long-term equity
investment acquired through business combination under the same control the initial investment
cost of the long-term equity investments is recorded at the merger date based on the acquisition of
the merged party's share of the book value of the net assets of the ultimate controller in the
consolidated financial statement. If the book value of the net assets of the merged party on the
merger date is negative the cost of long-term equity investments is determined as zero.If the equity of the investee under the same control is acquired in stages through multiple
transactions to eventually result in a business combination additional disclosures of the treatment
of long-term equity investments in the parent Group's financial statements shall be made in the
Reporting Period in which control is obtained. For example if the business combination that is
ultimately formed through multiple transactions to acquire the equity of the investee under the
same control belongs to a package deal the Group shall conduct accounting treatment to treat each
transaction as a single transaction to acquire control. If the transaction is not a package deal the
initial investment cost of the long-term equity investment is based on the share of the book value
of the net assets of the merged party in the consolidated financial statements of the ultimate
controller at the merger date. The difference between the initial investment cost and the sum of the
book value of the long-term equity investment before the merger plus the book value of the new
consideration paid for further acquisition of shares at the merger date shall offset against capital
reserve; and where capital reserve is insufficient to be offset the retained earnings shall be
adjusted.For long-term equity investment acquired through business combination not under the same
control the initial investment cost shall be the consolidation cost.If the equity of the investee not under the same control is acquired in stages through multiple
transactions to eventually result in a business combination additional disclosures of the cost
treatment of long-term equity investments in the parent Group's financial statements shall be made
in the Reporting Period in which control is obtained. For example if the business combination that
is ultimately formed through multiple transactions to acquire the equity of the investee not under
the same control belongs to a package deal the Group shall conduct accounting treatment to treat
182Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 Group calculates its investments in subsidiaries through the cost method and its investments
in joint ventures and associate enterprises through the equity method.For long-term equity investments calculated by the cost method for subsequent measurement the
book value of the cost of long-term equity investments shall be increased by the fair value of the
cost amount paid for the additional investment and relevant transaction costs incurred when the
additional investment is made. Cash dividends or profits declared by the investee are recognized
as investment income for the current period in accordance with the due amount.In addition to the above-mentioned long-term equity investment obtained through business
combination the long-term equity investment obtained by paying cash shall be regarded as the
investment cost according to the purchase price actually paid; the long-term equity investment
obtained by issuing equity securities shall be regarded as the investment cost according to the fair
value of issuing equity securities; the long-term equity investment invested by investors shall be
regarded as the investment cost according to the investment contract or agreement The value of
183Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
the Group is regarded as the cost of investment.The Group adopts the cost method for investment in subsidiaries and the equity method for
investment in joint ventures and associated enterprises.For the long-term equity investment whose subsequent measurement adopts the cost method
when the additional investment is made the book value of the long-term equity investment cost is
increased according to the fair value of the cost amount paid by the additional investment and the
relevant transaction expenses. The cash dividends or profits declared to be distributed by the
investee shall be recognized as the current investment income according to the amount that should
be enjoyed.For the long-term equity investment with equity method for subsequent measurement the book
value of the long-term equity investment will increase or decrease with the change of the owner's
equity of the invested entity. When confirming the share of the net profit and loss of the investee
the net profit and loss of the investee shall be calculated based on the fair value of the identifiable
assets of the investee at the time of obtaining the investment in accordance with the accounting
policies and accounting period of the Group and offset the internal transaction profit and loss
between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.For disposal of long-term equity investment the difference between the book value and the actual
price shall be included in the current investment income. For long-term equity investment
accounted by equity method other comprehensive income accounted by the original equity
method 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
184Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
investee other than net profit and loss other comprehensive income and profit distribution shall be
carried forward in proportion Transfer to current investment income.If the control over the investee is lost due to the disposal of part of the long-term equity
investment and the residual equity after disposal can jointly control or exert significant influence
on the investee it shall be accounted according to the equity method and the difference between
the book value of the disposal equity and the disposal consideration shall be included in the
investment income and the residual equity shall be regarded as adjusted by the equity method
when it is obtained If the residual equity cannot exercise joint control or exert significant influence
on the investee the accounting treatment shall be carried out according to the relevant provisions
of the recognition and measurement standards of financial instruments. The difference between the
book value of the disposal equity and the disposal consideration shall be included in the
investment income and the difference between the fair value and the book value of the residual
equity on the day of losing control shall be included in the current profits and losses.If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction accounting treatment shall be carried out for each transaction separately. If it
is a "package deal" each transaction will be treated as a transaction of disposal of subsidiaries and
loss of control. However before the loss of control the difference between the disposal price of
each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income and when the control is lost it
will be transferred to the current account of loss of control Period profit and loss.
21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the Group include the right to use any land which has already
been rented; the right to use any land which is held and prepared for transfer after appreciation;
and the right to use any building which has already been rented. In addition if the board of
directors (or similar organizations) makes a written resolution to use the vacant buildings held by
the Group for operating lease and the holding intention will not change in a short time they will
also be listed as investment real estate.The initial measurement of the investment property shall be made at its cost. Subsequent
expenditures incurred for an investment property is included in the cost of the investment property
when it is probable that economic benefits associated with the investment property will flow to the
Group and the cost can be reliably measured otherwise the expenditure is recognized in profit or
loss in the period in which they are incurred.The Group shall make a follow-up measurement to the investment property by employing the cost
185Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
pattern on the date of the balance sheet. An accrual depreciation or amortization shall be made for
the investment property in the light of the accounting policies of the use right of buildings or lands.For details of impairment test method and withdrawal method of impairment provision of
investment property please refer to Note IV. 27. “Long-term assets impairment”.The Group's investment real estate adopts the average life method for depreciation or amortization.The expected service life net residual value rate and annual depreciation (amortization) rate of all
kinds of investment real estate shall refer to the depreciation policy of buildings in fixed assets and
the amortization policy of land use right in intangible assets.When owner-occupied real estate or inventories are changed into investment property or
investment property is changed into owner-occupied real estate of which book value prior to the
change shall be the entry value after the change.When an investment property is changed to an owner-occupied real estate it would be transferred
to fixed assets or intangible assets at the date of such change. When an owner-occupied real estate
is changed to be held to earn rental or for capital appreciation the fixed asset or intangible asset is
transferred to investment property at the date of such change. If the fixed asset or intangible asset
is changed into investment property measured by adopting the cost pattern whose book value
prior to the change shall be the entry value after the change; if the fixed asset or intangible asset is
changed into investment property measured by adopting the fair value pattern whose fair value on
the date of such change shall be the entry value after the change.An investment property is derecognized on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.The amount of proceeds on sale transfer retirement or damage of an investment property less its
carrying amount and related taxes and expenses is recognized in profit or loss in the period in
which it is incurred.
22. Fixed Assets
The Group’s fixed assets are tangible assets held for the production of goods provision of services
rental or operation management and have a useful life of more than one year.Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Group and their cost can be measured reliably. The Group’s
fixed assets include buildings and constructions machinery and equipment electronic equipment
transportation equipment and other equipment.The Group depreciates all fixed assets by straight-line method except for fully depreciated fixed
assets that continue to be used and land that is separately valued. The categorized depreciable lives
186Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
estimated net salvage rates and depreciation rates of the Group’s fixed assets are as follows:
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
Housing and Straight-line 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
The cost of construction in progress is determined based on actual project expenditures including
all necessary project expenditures incurred during construction borrowing costs to be capitalized
before the project reaches its predetermined usable state and other related expenses etc.On the date when the construction in progress reaches its intended useable state fixed assets are
carried forward at the estimated value based on the project budget cost or actual cost of the
project etc. Depreciation starts from the following month and the difference in the original value
of fixed assets is adjusted after the completion of the final accounting procedures.Construction in progress is transferred to fixed assets upon reaching the predetermined usable state
with the criteria as follows:
Item Criteria for carrying forward fixed assets
187Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially
completed meeting the predetermined design requirements. Upon
joint acceptance by the Company’s Engineering Department and
units responsible for surveying design construction supervision
Houses and buildings
etc. and government departments such as the Fire Services
Department and the Housing Authority and reaching the
predetermined usable state following process approval it is
transferred to fixed assets.The equipment management department and the equipment
manufacturer are jointly responsible for the installation and
commissioning of the equipment including hardware debugging
machinery and equipment
process conditions debugging etc. Upon completion of debugging
and reaching the predetermined usable state following process
approval it is transferred to fixed assets.
24. Borrowing Costs
The Group capitalizes borrowing costs directly attributable to the acquisition construction or
production of qualifying assets as part of the cost of those assets. Other borrowing costs are
recognized as expenses in the current period. The assets determined by the Group that meet the
conditions for capitalization include: 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.During the capitalization period the Group recognizes the amount of borrowing costs capitalized
in each accounting period using the following method: In the case of borrowing special-purpose
borrowings the amount of interest expense actually incurred in the current period less interest
188Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
income earned on the unused borrowed funds deposited in the bank or investment income earned
on temporary investments shall be capitalized; in the case of occupying general borrowings the
amount shall be determined on the basis of the weighted average number of asset expenditures for
the portion of accumulated asset expenditures in excess of the special-purpose borrowings
multiplied by the capitalization rate of the general borrowings occupied where the capitalization
rate is calculated and determined on the basis of the weighted average interest rate of the general
The capitalization rate is based on the weighted average interest rate of general borrowings.
25. Right-of-Use Assets
The right-of-use assets refer to the right of the Group as the lessee to use the leased assets during
the lease term.
(1) Initial measurement
After the commencement date of the lease term the Group uses the cost for initial measurement of
right-of-use assets. The cost includes the following four items: a) The initial measurement amount
of lease liabilities; b) If there is a lease incentive for the lease payment paid on or before the
commencement date of the lease term the relevant amount of the lease incentive already enjoyed
shall be deducted; c) The initial direct expenses incurred are the incremental costs incurred in
reaching the lease; d) The costs expected to be incurred for dismantling and removing the leased
assets restoring the site where the leased assets are located or restoring the leased assets to the
state agreed in the lease terms except those incurred for the production of inventories.
(2) Follow-up measurement
After the commencement date of the lease term the Group adopts the cost model to carry out
follow-up measurement of the right-of-use assets that is the right-of-use assets are measured at
cost less accumulated depreciation and accumulated impairment losses. If the Group re-measures
the lease liabilities according to the relevant provisions of the lease standards the book value of
the right-of-use assets shall be adjusted accordingly.
(3)Depreciation of right-of-use assets
From the commencement date of the lease term the Group has accrued depreciation on the right-
of-use assets. Right-of-use assets are usually depreciated from the month when the lease term
begins. The accrued depreciation amount is included in the cost of related assets or current profits
and losses according to the use of the right-of-use assets.When determining the depreciation method of the right-of-use assets the Group makes a decision
based on the expected consumption mode of the economic benefits related to the right-of-use
assets and accrues depreciation for the right-of-use assets on the straight-line method.When determining the depreciation period of the right-of-use assets the Group follows the
following principles: If the ownership of the leased assets can be reasonably determined when the
lease term expires depreciation shall be accrued within the remaining service life of the leased
assets; if it cannot be reasonably determined that the ownership of the leased asset can be obtained
when the lease term expires depreciation shall be accrued within the shorter of the lease term and
189Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
the remaining service life of the leased asset.
(4)Impairment of right-of-use assets
If the right-of-use assets are impaired the Group carries out subsequent depreciation according to
the book value of the right-of-use assets after deducting the impairment loss.
26. Intangible Assets
The Group’s intangible assets include land use rights patented technology and non-proprietary
technology which are measured at actual cost at the time of acquisition. Acquired intangible assets
are stated at actual cost based on the actual price paid and related other expenses. The actual cost
of intangible assets invested by investors is determined at the value agreed in the investment
contract or agreement but if the agreed value in the contract or agreement is not fair the actual
cost is determined at fair value. Intangible assets such as patents acquired in a merger not under
common control but owned by the acquiree but not recognized in its financial statements are
recognized as intangible assets at fair value at the time of initial recognition of the acquiree’s
assets.
(1) Useful life and its determination basis estimation amortization method or review procedure
The Group's intangible assets include land use rights patented technology non-patented
technology etc. measured at the actual cost at the time of acquisition. For purchased intangible
assets the actual cost is determined by the actual payment made and related expenditures. For
intangible assets contributed by investors the actual cost is determined based on the value agreed
upon in the investment contract or agreement; however if the contractually agreed value is not fair
the fair value is used to determine the actual cost. Intangible assets such as patents which are
acquired in a business combination under common control but not recognized in the financial
statements of the acquiree are recognized as intangible assets at their fair value upon initial
recognition of the assets of the acquiree.
(2) Scope of R&D expenditures and related accounting treatment
The scope of the Group's R&D expenditures includes salaries of R&D personnel direct input
costs depreciation and amortization design fees equipment testing fees fees for R&D outsourced
to external parties and other expenses.The Group classifies its internal research and development project expenditures into expenditure
on the research phase and expenditure on the development phase based on the nature of the
expenditures and the degree of uncertainty in whether the R&D activities will result in an
intangible asset. Expenditure on the research phase are recognized in profit or loss when incurred.Expenditure on the development phase are capitalized when all of the following conditions are
met:
a) The Group has assessed the technical feasibility of completing the intangible asset so that it will
be available for use or sale.b) The Group intends to complete the intangible asset and use or sell it.c) It is probable that the intangible asset will generate future economic benefits.
190Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
d) The Group has the adequate technical financial and other resources to complete the
development and to use or sell the intangible asset.e) The expenditure attributable to the development phase of the intangible asset can be measured
reliably. Development phase expenditures not meeting these capitalization criteria are recognized
in profit or loss for the current period when incurred.
27. Impairment of Long-term Assets
For non-current non-financial Assets of fixed assets projects under construction intangible assets
with limited service life investing real estate with cost model long-term equity investment of
subsidiaries cooperative enterprises and joint ventures the Group should judge whether decrease
in value exists on the date of balance sheet. Recoverable amounts should be tested for decrease in
value if it exists. Goodwill intangible assets with uncertain service life and other non-accessible
intangible assets should be tested for impairment at the end of each year regardless of whether
there is any indication of impairment.
(1) Impairment of non-current assets other than financial assets (except goodwill)
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.
(2) Impairment of goodwill
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
191Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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.The methodology parameters and assumptions for the goodwill impairment test are described in
Note VI-21.After the asset impairment loss is determined recoverable value amounts would not be returned in
future.
28. Long-term Deferred Expenses
The Long-term deferred expenses of the Group including renovation cost mold cost and so on
shall be amortized evenly during the benefit period. If these long-term deferred expenses cannot
benefit the future accounting period the amortized value of this item that has not been amortized
shall be transferred to the current profit and loss.
29. Contract Liabilities
Liabilities of contracts refer to the Group's obligation to transfer goods to customers due to the
consideration received or receivable from customers. Before the transfers if the customer has paid
the consideration or if the Group has obtained the right to unconditionally collect the contract
consideration the liabilities of contracts shall be recognized based on the amount received or
receivable at the earlier point between the actual payment by the customer and the payment due.
30. Employee Compensation
Salaries of staff of the Group include short-term salary post-employment benefits termination
compensation and other long-term benefits.Short-term salary mainly includes wages bonuses allowances and subsidies as well as employee
benefits medical insurance maternity insurance employment injury insurance housing provident
fund labor union expenses and staff education expenses and non-monetary benefits. During the
accounting period when the employees provide services the actual short-term compensation is
recognised as a liability that shall be included in the current profit and loss or the cost of related
assets according to the beneficiary.The post-employment benefits mainly include the basic endowment insurance etc. They are
divided into defined contribution plans and defined benefit plans in accordance with the risks and
obligations undertaken by the Group. According to the defined contribution plan the deposit paid
to a separate entity in exchange for the services provided by the employees during the accounting
period on the balance sheet date is recognized as liabilities and shall be included in the current
192Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
profit and loss or the cost of related assets according to the beneficiary. If the Group has a defined
benefit plan the specific accounting method should be explained.When terminating labour relations before expiration of contract or layoffs with compensations
and the Group cannot terminate the labour relations unilaterally or reduce the demission welfare
remuneration and liabilities produced from the demission welfare should be determined and
included in current profits and losses when determining the costs of demission welfare and
recombination. However demission welfare not fully paid within 12 months after annual
Reporting Period should be handled the same as other long-term employees’ payrolls.The inside employee retirement plan is treated by adopting the same principle with the above
dismiss ion welfare. The Group would recorded the salary and the social security insurance fees
paid and so on from the employee’s service termination date to normal retirement date into current
profits and losses (dismission welfare) under the condition that they meet the recognition
conditions of estimated liabilities.The other long-term welfare that the Group offers to the staffs if met with the setting drawing plan
should be accounting disposed according to the setting drawing plan while the rest should be
disposed according to the setting revenue plan.
31. Lease Liabilities
(1) Initial measurement
The Group initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term.
1) Lease payments
Lease payments refer to the amount paid by the Group to the lessor related to the right to use the
leased assets during the lease term including: a) Fixed payment amount and substantial fixed
payment amount. If there is lease incentive deduct the amount related to lease incentive; b) The
variable lease payment amount depending on the index or ratio which is determined according to
the index or ratio on the commencement date of the lease term at the initial measurement; c) When
the Group reasonably determines the exercise price of the purchase option when it will exercise it;
d) The lease term reflects the amount to be paid to exercise the termination option when the Group
will exercise the termination option; e) The amount expected to be paid based on the residual
value of the guarantee provided by the Group.
2) Rate of discount
When calculating the present value of the lease payments the Group uses the interest rate implicit
in lease as the rate of discount which is the interest rate at which the sum of the present value of
the lessor's lease receipts and the present value of the unsecured residual value equals the sum of
the fair value of the leased asset and the lessor's initial direct expenses. If the Group fails to
determine the interest rate implicit in lease the incremental interest rate on borrowing will be used
193Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
as the rate of discount. The incremental interest rate on borrowing shall mean the interest rate
payable by the Group to borrow funds under similar mortgage conditions during similar periods to
acquire assets close to the value of the right-of-use assets under similar economic circumstances.The interest rate is related to the following matters: a) The Group's own situation that is the
Company's solvency and credit status; b) The term of "loan" that is the lease term; c) The amount
of "borrowed" funds that is the amount of lease liabilities; d) "Mortgage conditions" that is the
nature and quality of the underlying assets; e) Economic environment including the jurisdiction
where the lessee is located the valuation currency the time when the contract is signed etc. The
incremental borrowing rate is based on the Group's latest asset-based lending interest rate for
similar assets and adjusted to take into account the above factors.
(2) Follow-up measurement
After the commencement date of the lease term the Group carries out follow-up measurement of
lease liabilities according to the following principles: a) When recognizing the interest of lease
liabilities the Group will increase the carrying amount of lease liabilities; b) When paying the
lease payments the Group will reduce the book amount of the lease liability; c) When the lease
payments changes due to revaluation or lease change the Group will remeasure the book value of
lease liability.The Group calculates the interest expenses of the lease obligations during each period of the lease
term at a fixed periodic interest rate and includes them (except those that shall be capitalized) in
profit or loss for the current period. Periodic rate refers to the rate of discount adopted by the
Group when initially measuring lease liabilities or the revised rate of discount adopted by the
Group when lease liabilities need to be remeasured according to the revised rate of discount due to
changes in lease payments or lease changes.
(3) Re-measurement
After the commencement date of the lease term the Group re-measures the lease liability based on
the present value of the changed lease payment and adjusts the book value of the right-of-use
assets accordingly when the following circumstances occur. If the carrying value of the right-of-
use assets has been reduced to zero but the lease obligations still need to be further reduced the
Group will include the remaining amount in profit or loss for the current period. a) The actual
fixed payment amount changes (in this case the original rate of discount is used for discount); b)
The estimated amount payable of the residual value changes (in this case the original rate of
discount is used for discount); c) The index or ratio used to determine the lease payment changes
(in this case the revised rate of discount is used for discount); d) The evaluation result of the
purchase option changes (in this case the revised rate of discount is adopted for discount); e) The
evaluation result or actual exercise of the lease renewal option or the lease termination option
changes (in this case the revised rate of discount is adopted for discount).
32. Provisions
The Group should recognize the related obligation as a provision for liability when the obligation
meets the following conditions: (1) That obligation is a present obligation of the enterprise; (2) It
is probable that an outflow of economic benefits from the enterprise will be required to settle the
194Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
obligation; (3) A reliable estimate can be made of the amount of the obligation.The projected liabilities are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation with the risks related to contingent
matters uncertainty the time value of money and other factors taken into consideration. The
Group reviews the current best estimate of the provisions for contingent liabilities at the balance
sheet date and adjusts the carrying amount of the provision as necessary.When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides the
amount recognized for the reimbursement should not exceed the carrying value of the estimated
liabilities.
33. Principles of Revenue Recognition and Measurement Method
The revenue of the Group mainly consists of the income from main business and the income from
other businesses.
(1)Revenue recognition principle
The Group has fulfilled the performance obligations in the contract that is when the customer
obtains control of the relevant goods or services revenue is recognized. Obtaining control over
related goods or services means being able to lead the use of the goods or the provision of such
services and obtain almost all of the economic benefits from it.On the starting date of the contract the Group evaluates the contract identifies each individual
performance obligation contained in the contract and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time.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:
* The customer obtains and consumes the economic benefits brought by the Group's performance
at the same time the Group performs the contract.* The customer can control the products under construction during the performance of the Group.* The goods produced during the performance of the Group have irreplaceable uses and the
Group has the right to collect payments for the cumulative performance of the contract during the
entire contract period.For performance obligations performed within a certain period of time the Group recognizes
revenue according to the performance progress during that period. When the performance progress
cannot be reasonably determined if the cost incurred by the Group is expected to be compensated
195Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
the revenue shall be recognized according to the amount of the cost incurred until the performance
progress can be reasonably determined.For performance obligations performed at a certain point in time the Group recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When judging
whether a customer has obtained control of goods or services the Group considers the following
signs:
* The Group enjoys the current right to receive payment for the goods or services.* The Group has transferred the legal ownership of the product to the customer.* The Group has transferred the goods in kind to the customer.* The Group has transferred the main risks and rewards of the ownership of the product to the
customer.* The customer has accepted the goods or services.The Group has transferred goods or services to customers and the right to receive consideration is
listed as contract assets and contract assets are devalued on the basis of expected credit losses.The Group's unconditional right to collect consideration from customers is listed as receivables.The Group’s obligation to transfer goods or services to customers due to the consideration
received from customers is listed as contract liabilities.
(2) Principles of income measurement
* If the contract contains two or more performance obligations at the beginning of the contract
the Group will allocate the transaction price to each individual performance obligation based on
the relative proportion of the stand-alone selling price of the goods or services promised by each
individual performance obligation. Revenue is measured at the transaction price of each individual
performance obligation.* The transaction price is the amount of consideration that the Group expects to be entitled to
receive due to the transfer of goods or services to customers excluding payments collected on
behalf of third parties and payments expected to be returned to customers. The transaction price
confirmed by the Group does not exceed the amount at which the accumulated confirmed income
will most likely not undergo a significant reversal when the relevant uncertainty is eliminated. It is
expected that the money returned to the customer will not be included in the transaction price as a
liability.* If there is variable consideration in the contract such as cash discounts and price guarantees in
part of the contract between the Group and its customers the Group determines the best estimate
196Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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.* For the consideration payable to customers the Group offsets the transaction price from the
consideration payable to customers and offsets the current income at the time when the relevant
income is recognized and the payment (or promised to pay) the customer consideration is later
unless the consideration payable is for Obtain other clearly distinguishable products from
customers.* For sales with a sales return clause when the customer obtains control of the relevant product
the Group recognizes revenue based on the amount of consideration expected to be received due to
the transfer of the product to the customer and the expected return due to the sales return is
recognized as an estimated liability ; At the same time according to the expected book value of
the returned goods at the time of transfer the balance after deducting the estimated cost of
recovering the goods (including the value impairment of the returned goods) is recognized as an
asset that is the return cost receivable according to the transferred goods The book value at the
time of the transfer deducting the net carry-over cost of the aforementioned asset cost. On each
balance sheet date the Group re-estimates the future sales returns and re-measures the
aforementioned assets and liabilities.* If there is a significant financing component in the contract the Group shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
goods or services. Using the discount rate that discounts the nominal amount of the contract
consideration into the current commodity price the difference between the determined transaction
price and the amount of the consideration promised in the contract is amortized by the actual
interest method during the contract period. On the starting date of the contract the Group expects
that the time between the customer's acquisition of control of the goods or services and the
customer's payment of the price will not exceed one year regardless of the significant financing
components in the contract.* According to contractual agreements legal provisions etc. the Group provides quality
assurance for the products sold and the assets built. For guarantee-type quality assurance to assure
customers that the goods sold meet the established standards the Group conducts accounting
treatment in accordance with "contingent events-estimated liabilities". For the service quality
assurance that provides a separate service in order to assure customers that the goods sold meet the
established standards the Group regards it as a single performance obligation based on the stand-
alone selling price of the quality assurance of goods and services. In a relative proportion part of
197Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
the transaction price is allocated to service quality assurance and revenue is recognized when the
customer obtains control of the service. When assessing whether the quality assurance provides a
separate service in addition to ensuring that the products sold meet the established standards the
Group considers whether the quality assurance is a legal requirement the quality assurance period
and the nature of the Group's commitment to perform the tasks.* When the construction contract between the Group and the customer is changed: * If the
contract change adds clearly distinguishable construction services and contract prices and the new
contract price reflects the stand-alone selling price of the new construction services the Group
will The contract change shall be treated as a separate contract for accounting treatment; * If the
contract change does not fall into the above-mentioned circumstance * and there is a clear
distinction between the construction services that have been transferred and the construction
services that have not been transferred on the date of the contract change the Group Treat it as the
termination of the original contract and at the same time merge the unfulfilled part of the original
contract and the changed part of the contract into a new contract for accounting treatment;* If the
contract change does not fall into the above situation * and the construction service has been
transferred on the date of contract change There is no clear distinction between the construction
service and the untransferred construction service. The Group accounts for the changed part of the
contract as a component of the original contract. The resulting impact on the recognized revenue
will be adjusted on the date of contract change.
(3) Specific methods of revenue recognition
* Revenue recognized on time
The Group's sales of household appliances electronic components etc. belong to the performance
obligation performed at a certain point in time.Recognition conditions for income from domestic sales of goods and overseas direct sales of
goods: The Group has delivered the product to the customer in accordance with the contract and
the customer has received the product the payment has been recovered or the receipt of payment
has been obtained and the relevant economic benefits are likely to flow in. The main risks and
rewards have been transferred and the legal ownership of the goods has been transferred.Conditions for confirming the income of exported goods: The Group has declared the products for
export according to the contract obtained the bill of lading and delivered the goods to the carrier
entrusted by the purchaser. The payment has been recovered or the receipt of payment has been
obtained and relevant economic benefits are likely to flow in. The main risks and rewards of
commodity ownership have been transferred and the legal ownership of commodities has been
transferred.
198Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
* Income confirmed according to the performance progress
The Group's business contracts with customers for project construction online advertising
operating leases etc. are performance obligations performed within a certain period of time and
revenue is recognized according to the progress of the performance.
34. Government Grants
The government grants of the Group are divided into asset-based grants related to and income-
based grants. Asset-based grants refer to the government grants for long-term assets obtained by
the purchase construction and other ways. Income-based grants refer to other grants. If the
beneficiaries are not specified in government documents the Group will make the distinction
according to the aforesaid principle. Beneficiaries which are difficult to categorize shall be
classified as an income-based government grant as a whole.Current elements of government grants shall be measured based on the amount actually received.Those shall be measured according to the amount receivable are grants paid according to a fixed
quota standard or funds that meet the relevant conditions stipulated by the financial support policy
with conclusive evidence at the end of the year and which are expected as the financial support.Non-monetary elements of the government grants shall be measured at fair value. Those whose
fair value cannot be obtained reliably shall be measured at its nominal amount (RMB1).Asset-based grants shall be used to offset the carrying value of related assets or presented as
deferred income and shall over the life of the related asset be included in the current profits and
losses by the equal amortization method.If the related asset is sold transferred scrapped or damaged before the end of its useful life its
deferred income that has not been distributed shall be transferred to the current profit and loss of
asset disposal.Income-based grants that are used to compensate related costs or losses in subsequent periods
shall be deemed as deferred income and shall be included in the current profits and losses during
the period when the related costs or losses are recognized. Government grants related to routine
activities shall be included in other income in accordance with the nature of the transaction.Government grants not related to routine activities shall be included in non-operating income and
expenditure.The Group obtains interest grants on policy-related concessional loans in two different ways: the
interest subsidy funds are allocated by the government either to the lending bank or directly to the
Group. The respective accounting treatment is carried out as follows:
199Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(1) Where the government allocates the funds to the lending bank and the bank provides a loan to
the Group at a policy-related preferential interest rate the actual amount of the loan received is
taken as the entry value and the borrowing costs are calculated based on the loan principal and the
policy-related preferential interest rate.
(2) Where the government allocates the funds directly to the Group the grants are offset against
borrowing costs.Where the government grants that the Group has recognized in accounting need to be returned the
accounting treatment in the current period is carried out as follows:
1) If the book value of an asset is offset on initial recognition the book value will be adjusted;
2) If there is deferred income the book balance of the deferred income will be offset and the
excess will be included in profit or loss in the current period;
3) Under any other circumstances the grants will be included in profit or loss in the current period.
35. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized based on
the difference (temporary difference) between the tax base and book value of the assets and
liabilities. In the case of deductible losses that can be deducted from taxable income in subsequent
years in accordance with the provisions of the tax laws the corresponding deferred income tax
assets are recognized. In the case of temporary differences arising from the initial recognition of
goodwill the corresponding deferred income tax liabilities are not recognized. With respect to
temporary differences arising from the initial recognition of an asset or liability in a transaction
which isn’t a business combination and which affects neither accounting profit nor taxable income
(or deductible losses) the corresponding deferred income tax assets and deferred income tax
liabilities are not recognized. On the balance sheet date the deferred income tax assets and
deferred income tax liabilities are measured at the tax rate applicable to the period during which
the assets are expected to be recovered or the liabilities are expected to be settled.The Group recognizes deferred income tax assets to the extent of the taxable income which it is
most likely to obtain and which can be deducted from deductible temporary differences
deductible losses and tax credits.
36. Leasing
(1) Identification of leases
The term "lease" refers to a contract whereby the lessor transfers the right of use regarding the
leased asset(s) to the lessee within a specified time in exchange for consideration. On the
commencement date of the contract the Group assesses whether the contract is a lease or contains
200Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
a lease. If a party to the contract transfers the right allowing the control over the use of one or
more assets that have been identified within a certain period in exchange for a consideration such
contract is a lease or includes a lease. In order to determine whether a party to the contract
transfers the right allowing the control over the use of the identified assets for a certain period of
time the Group assesses whether the customers in the contract are entitled to obtain almost all the
economic benefits arising from the use of the identified assets during the use period and have the
right to dominate the use of the identified assets during the use period.If a contract contains multiple single leases at the same time the Group will split the contract and
conduct accounting treatment of each single lease respectively. If a contract contains both lease
and non-lease parts at the same time the Group will split the lease and non-lease parts for
accounting treatment.
(2) The Group as lessee
1) Lease recognition
On the commencement date of the lease term the Group recognizes the right-of-use assets and
lease obligations in respect of the lease. For the recognition and measurement of right-of-use
assets and lease liabilities please refer to Note IV "25. Right-of-use assets" and "31. Lease
liabilities".
2) Lease change
A lease change refers to a change in the scope consideration and term of lease outside the
original contract clauses including the addition or termination of the one or several rights to use
lease assets and the extension or reduction of the lease term specified in the contract. The
effective date of lease change refers to the date when both parties reach an agreement on lease
change.If the lease changes and the following conditions are met at the same time the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope or extends
the lease term by increasing the right to use one or more leased assets; b) The increased
consideration is equivalent to the separate price of the expanded lease scope or the extended lease
term adjusted according to the contract conditions.If the lease change is not accounted for as a separate lease on the effective date of the lease
change the Group will allocate the consideration of the changed contract in accordance with the
relevant provisions of the lease standards and re-determine the changed lease term. The revised
rate of discount is used to discount the changed lease payments to remeasure the lease liability.When calculating the present value of the changed lease payments the Group uses the interest rate
implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined
the Group adopts the incremental borrowing rate of the lessee on the effective date of the lease
change as the rate of discount. With regard to the impact of the above-mentioned lease liability
adjustment the Group conducts accounting treatment according to the following situations: a) The
lessee will correspondingly reduce the book value of the right-of-use assets and include the profit
or loss of the lease terminated in part or whole in the current profit or loss if the lease change
narrows the scope of lease or shortens the lease term. b) The lessee will correspondingly adjust the
201Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
book value of the right-of-use assets if other lease changes result in the re-measurement of the
lease obligation.
3) Short-term and low-value asset leases
For short-term leases with a lease term not exceeding 12 months and low-value asset leases with
lower value when single leased assets are brand new assets the Group chooses not to recognize
right-of-use assets and lease liabilities. The Group includes the payments of short-term and low-
value asset leases incurred during each period of the lease term in the profit or loss for the current
period or the cost of relevant assets by the straight-line method.
(3) The Group as lessor
On the basis that (1) the contract assessed is a lease or includes a lease the Group as the lessor
classifies leases into finance leases and operating leases on the lease commencement date.If a lease substantially transfers virtually all risks and rewards associated with ownership of the
leased asset the lessor classifies the lease as a finance lease and leases other than finance leases as
operating leases.The Group usually classifies a lease that falls under any one or more of the following
circumstances as a finance lease: a) When the lease term expires the ownership of the leased asset
is transferred to the lessee; b) The lessee has the option to purchase the leased asset(s). As the
agreed purchase price is low enough compared with the fair value of the leased asset(s) at the time
the option is expected to be exercised it can be reasonably determined at the inception of the lease
that the lessee will exercise the option; c) Although the ownership of the assets is not transferred
the lease term accounts for most of the service life of the leased assets; d) On the lease
commencement date the present value of lease receipts is almost equivalent to the fair value of
leased assets; e) The leased assets are special in nature and only the lessee can use them without
major renovation. The Group may also classify a lease that falls under any one or more of the
following circumstances as a finance lease: a) If the lessee cancels the lease losses to the lessor
caused by the cancellation will be borne by the lessee; b) The gains or losses arising from the
fluctuation of the fair value of the residual value of assets belong to the lessee; c) The lessee has
the ability to continue leasing until the next term at a rent far below the market level.
1) Accounting treatment of finance leases
Initial measurement
On the commencement date of the lease term the Group recognizes the finance lease receivables
for the finance lease and derecognizes the leased asset of the finance lease. It recognizes the net
investment in the lease as the entry value of the finance lease when initially measuring the finance
lease receivable.The net investment in the lease is the sum of the net value of the unguaranteed residual value and
the lease receivable not received on the commencement date of the lease term at the interest rate
implicit in lease. Lease collection amount refers to the amount that the lessor should collect from
the lessee for transferring the right to use the leased assets during the lease term including: a)
Fixed payment amount and substantial fixed payment amount that the lessee needs to pay. If there
202Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
is lease incentive deduct the amount related to lease incentive; b) The variable lease payment
depending on the index or ratio which is determined according to the index or ratio on the
commencement date of the lease term at the initial measurement; c) The exercise price of the
purchase option provided that it is reasonably determined that the lessee will exercise the option;
d) The amount to be paid by the lessee to exercise the option to terminate the lease provided that
the lease term reflects that the lessee will exercise the option to terminate the lease; e) The residual
value of guarantee provided to the lessor by the lessee the party related to the lessee and an
independent third party that has the financial ability to fulfill the guarantee obligation.Follow-up measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each period in the
lease term. Periodic rate refers to the rate of discount implicit in lease adopted to determine the net
investment in the lease (in the case of sublease if the interest rate implicit in lease of sublease
cannot be determined the rate of discount implicit in original lease is adopted (adjusted according
to the initial direct expenses related to sublease)) or the revised rate of discount determined in
accordance with the relevant provisions where the change of the finance lease is not accounted for
as a separate lease and meets the condition that the lease will be classified as a finance lease if the
change became effective on the lease commencement date.Accounting treatment of lease change
If the lease changes and the following conditions are met at the same time the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope by increasing
the right to use one or more leased assets; b) The increased consideration is equivalent to the
separate price of the expanded lease scope adjusted according to the contract conditions.If the change of finance lease is not accounted for as a separate lease and the condition that the
lease will be classified as an operating lease if the change takes effect on the lease commencement
date is met the Group will account for it as a new lease from the effective date of the lease change
and take the net lease investment before the effective date of the lease change as the book value of
the leased asset.
2) Accounting treatment of operating leases
Treatment of rent
The Group recognizes lease receipts from operating leases as rental income on a straight-line basis
during each period of the lease term.Incentives provided
If the Group provides a rent-free period it allocates the total rentals over the entire lease term
without deducting the rent-free period by the straight-line method and also recognizes rental
income during the rent-free period. If certain expenses of the lessee are borne the Group allocates
the balance of rental income over the lease term after such expenses are deducted from the gross
rental income.Initial direct cost
203Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Initial direct expenses incurred by the Group in connection with operating leases shall be
capitalized to the cost of the leased underlying asset and recorded in the profits and losses of the
current period in stages over the lease term on the same basis of recognition as rental income.Depreciation
For the fixed assets in the assets under operating lease the Group adopts the depreciation policy of
similar assets to calculate and distill depreciation. For other assets under operating lease the
Group amortizes them in a systematic and reasonable manner.Variable lease payments
Variable lease payments made by the Group in relation to operating leases that are not included in
the lease receivable are included in the current profit or loss when they are actually incurred.Change of operating leases
If an operating lease changes the Group will regard it as a new lease for accounting treatment
from the effective date of the change. The advance receipt or the lease receivable related to the
lease prior to the change is recognized as the payment receivable of the new lease.
37. Changes in Main Accounting Policies and Estimates
(1) Changes of accounting policies
The Ministry of Finance issued the Accounting Standards for Business Enterprises Interpretation
No. 16 (C.K. [2022] No. 31) (hereinafter referred to as "Interpretation No. 16") on November 30
2022 interpretation No. 16 that "accounting treatment that the exemption of initial recognition
shall not apply to the deferred income tax relating to assets and liabilities arising from a single
transaction" which has taken effect on 1 January 2023 with early adoption permitted for
companies from the year of release. The Company has applied this interpretation starting from 1
January 2023.For taxable temporary differences and deductible temporary differences arising from the lease
liabilities and right-of-use assets recognised based on single transactions that comply with the
above provision at the period-begin of the earliest period presented in the financial statement that
followed such provision for the first time the Company will adjust retained income brought
forward in the earliest period presented in the financial statement and other relevant items of the
financial statement based on the figures cumulatively affected in accordance with such provision
and the Accounting Standards for Business Enterprises No. 18 Income Taxes.In accordance with the relevant provisions of Interpretation No. 16 the names and amounts of the
significantly affected statement items are set forth below:
Item affected 1 January 2023
204Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Before Adjustment
adjustment amount After adjustment
Total assets
Of which: deferred income tax
assets 1190454750.62 6951620.03 1197406370.65
Total liabilities
Of which: deferred income tax
liabilities 89535936.97 5891361.34 95427298.31
Total shareholders
Of which: retained earnings 3637291770.33 1060258.69 3638352029.02
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.V. Taxation
1. Main Taxes and Tax Rate
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at
the tax rate and paid the VAT
by the amount after deducting
the deductible withholding
VAT VAT at current period of 1% 3% 5% 6% 9% 13%
which the VAT applicable to
easy collection won’t belong
to the deductible withholding
VAT.Paid at 5% by subsidiaries including:
Dongguan Konka XingDa HongYe
Xinfeng Microcrystalline Boluo Konka
Precision Boluo Konka Ningbo
Kanghanrui Jiangsu Konka Smart Yibin
Kangrun Yibin Kangrun Medical Konka
Urban The circulating tax actually Huanjia (Henan) Konka Ronghe Chengdumaintenance and paid Anren Chain Kingdom Semiconductorconstruction tax (Shaoxing) Guizhou Kanggui Materials
Zhejiang Konka Electronic Zhejiang Konka
Technology Industry Songyang Konka
Intelligent
Paid reduced by half at 7% by subsidiaries
including: Liaoyang Kangshun Renewable
Zhitong Technology Yibin Smart
205Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Category of taxes Basis Specific situation of the taxes rate
Shenzhen Nianhua Anhui Konka Low
Carbon Kanghong Xintong
Paid reduced by half at 5% by subsidiaries
including: Jiangkang (Shanghai)
Technology Guizhou Konka New Material
Guizhou Konka New Energy
Paid at 1%: Jiangxi Konka Jiangxi High
Transparent Substrate
Paid at 7%: other subsidiaries.Education surtax The circulating tax actuallypaid 3%
Local education The circulating tax actually
surtax paid 2%
Enterprise income Taxable income 25%/ See 2.Tax Preference and Approvedtax Documents for details
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 Shanxi Konka Jiangsu Konka
XingDa HongYe Xinfeng Microcrystalline Boluo 15%
Precision Kowin Memory (Shenzhen) Xiaojia
Technology
Hong Kong Konka Hongdin Trading Jiali
International Hongjet Jiaxin Technology Hongdin
Invest Konka Mobility Kowin Memory (Hong 16.5%
Kong)
Chain Kingdom Memory Technologies 16.5%
Konka Europe 15%
Kanghao Technology 22.5%
Konka North America 21%
The Company as the Parent and other subsidiaries 25%
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 prepayment
206Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)liquidation summary and finance transfer”. It came into force from 1 January 2008. According to
the above methods the Company’s sales branch companies in each area will hand in the corporate
income taxes in advance from 1 January 2008 and will be final settled uniformly by the Company
at the year-end.
2. Tax Preference and Approved Documents
(1) According to the announcement of the State Administration of Taxation No. 12 of 2023: Small
enterprises with small profits shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20% which shall be continued until 31 December 2027.
(2) On 18 October 2022 Anhui Konka a subsidiary of the Company obtained the Certificate of
High-Tech Enterprise jointly issued by the Department of Science and Technology of Anhui
Province the Department of Finance of Anhui Province and the Taxation Bureau of Anhui
Province of the State Administration of Taxation with the certificate number GR202234002272
which is valid for three years. In accordance with the relevant tax regulations Anhui Konka is
entitled to the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
preferential tax rate of 15%.
(3) On 4 November 2022 Xinfeng Microcrystalline a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Jiangxi Province the Department of Finance of Jiangxi Province and the Taxation Bureau of
Jiangxi Province of the State Administration of Taxation with the certificate number
GR202236000999 which is valid for three years. According to the relevant tax regulations
Xinfeng Microcrystalline is entitled to the relevant tax incentives for three consecutive years from
2022 to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay
enterprise income tax at a preferential tax rate of 15%.
(4) On 18 October 2022 Anhui Tongchuang a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Anhui Province the Department of Finance of Anhui Province and the Taxation Bureau of
Anhui Province of the State Administration of Taxation with the certificate number
GR202234000798 which is valid for three years. In accordance with the relevant tax regulations
Anhui Tongchuang is entitled to the relevant tax incentives for three consecutive years from 2022
to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay enterprise
income tax at a preferential tax rate of 15%.
(5) On 22 December 2022 Boluo Precision a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Guangdong
Province Department of Finance of Guangdong Province and Guangdong Provincial Tax Service
of State Taxation Administration (No. GR202244017658) which will be valid for three years.According to relevant tax regulations Boluo Precision enjoys relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2022 to 2024 and pays enterprise income
tax at a reduced rate of 15%.
207Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(6) On 19 December 2022 Electronic Technology a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation with the certificate number GR202244205867 which is valid for
three years. In accordance with the relevant tax regulations Electronic Technology is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(7) On 20 December 2021 XingDa HongYe a subsidiary of the Company obtained the "High-
tech Enterprise Certificate" jointly issued by Department of Science and Technology of
Guangdong Province Department of Finance of Guangdong Province and Guangdong Provincial
Tax Service of State Taxation Administration (No. GR202144002737) which will be valid for
three years. According to relevant tax regulations XingDa HongYe enjoys relevant preferential
tax policies for high-tech enterprises for three consecutive years from 2021 to 2023 and pays
enterprise income tax at a reduced rate of 15%.
(8) On 23 December 2021 Kowin Memory (Shenzhen) a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation with the certificate number GR202144206630 which is valid for
three years. In accordance with the relevant tax regulations Kowin Memory (Shenzhen) is entitled
to the relevant tax incentives for three consecutive years from 2021 to 2023 to enjoy the relevant
tax preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(9) On 19 December 2022 Xiaojia Technology a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation with the certificate number GR202244203274 which is valid for
three years. In accordance with the relevant tax regulations Xiaojia Technology is entitled to the
relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(10) On 29 November 2023 Shanxi Konka a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Shanxi
Province Department of Finance of Shanxi Province and Shanxi Provincial Tax Service of State
Taxation Administration (No. GR202361002167) which will be valid for three years. According
to relevant tax regulations Shanxi Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025 and pays enterprise income tax at a
reduced rate of 15%.
(11) On 6 November 2023 Jiangsu Konka a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" jointly issued by Department of Science and Technology of Jiangsu
Province Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service of State
208Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Taxation Administration (No. GR202332008044) which will be valid for three years. According
to relevant tax regulations Shanxi Konka enjoys relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2023 to 2025 and pays enterprise income tax at a
reduced rate of 15%.
(12) In accordance with the Announcement on the Renewal of the Enterprise Income Tax Policy
for Western Development Enterprises (Ministry of Finance General Administration of Taxation
National Development and Reform Commission Announcement No. 23 of 2020) an enterprise
established in the western region who is mainly engaged in an industry specified in the Catalogue
of Encouraged Industries in the Western Region and whose main business income accounts for
over 60% of its gross income in the current year is entitled to a reduced corporate income tax rate
of 15%. Chengdu Konka Electronic a subsidiary of the Company is eligible for this preferential
tax policy.
(13) 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 Electronics Technology and Anhui
Tongchuang all enjoy this preferential policy.VI. Notes to Major Items in the Consolidated Financial Statements of the
Company
Unless otherwise noted for the financial statement data disclosed below "beginning of the year"
refers to 1 January 2023 "end of the year" refers to 31 December 2023 "the current year" refers to
the period from 1 January 2023 to 31 December 2023 and "last year" refers to the period from 1
January 2022 to 31 December 2022. The monetary unit is renminbi.
1. Monetary assets
Item Closing balance Opening balance
Cash on hand 469.28 14.78
Bank deposits 5892986243.07 5473400175.52
Other monetary assets 613372864.67 514695300.41
Total 6506359577.02 5988095490.71
Of which: Total amount deposited overseas 55324772.13 137008617.40
Note: The closing balance of other monetary funds is mainly the balance of time deposits margin
deposits and account balance on WeChat Alipay and other platforms. For details of restricted
funds please refer to Note VI-25 Assets with restricted ownership or use right.
2. Held-for-trading financial assets
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 469636700.78
209Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Including: Investment in equity instruments 469636700.78
Total 469636700.78
3. Notes receivable
（1） Classified presentation of notes receivable
Item Closing balance Opening balance
Banker's acceptance 517759367.29 709558838.75
Commercial acceptance draft 15412581.86 350178404.79
Total 533171949.15 1059737243.54
（2） Listed by withdrawal methods for provision for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio 533492913.47 100.00 320964.32 0.06 533171949.15
Of which: Banker's
acceptance 517759367.29 97.05 517759367.29
Commercial acceptance
draft 15733546.18 2.95 320964.32 2.04 15412581.86
Total 533492913.47 100.00 320964.32 0.06 533171949.15
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Provision set aside for bad
debts by the single item
Provision set aside for
bad debts by portfolio 1067029648.07 100.00 7292404.53 0.68 1059737243.54
Of which: Banker's
acceptance 709558838.75 66.50 709558838.75
210Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Commercial acceptance
draft 357470809.32 33.50 7292404.53 2.04 350178404.79
Total 1067029648.07 100.00 7292404.53 0.68 1059737243.54
Provision for expected credit losses on commercial acceptance draft based on aging in the
portfolio
Closing balance
Name
Book balance Provision for bad debts Provisionpercentage (%)
Within one year 15733546.18 320964.32 2.04
Total 15733546.18 320964.32 2.04
（3） Provision for bad debts of notes receivable set aside recovered or reclassified in the
current year
Change in the current year
Category Opening Closingbalance
Provision Recovery or Charge-off
balance
reclassification or write-off Others
Commercial
acceptance draft 7292404.53 357873.71 7329313.92 320964.32
Banker's
acceptance
Total 7292404.53 357873.71 7329313.92 320964.32
（4） Notes receivable pledged at the end of the year
Item Amount pledged at the end of the year
Banker's acceptance 209288446.67
Commercial acceptance draft
Total 209288446.67
（5） Notes receivable endorsed or discounted but had not yet matured on the balance sheet
date at the end of the year
Item Amount derecognised at the end Amount not derecognised at theof the year end of the year
Banker's acceptance 1076672657.07
Commercial acceptance draft 11524075.93
Total 1076672657.07 11524075.93
211Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（6） Notes receivable actually written off in the current year
There were no significant write-offs of notes receivable in the current year.
4.Accounts receivable
（1） Accounts receivable listed by aging portfolio
Aging Book balance at the end of the year Book balance at the beginning ofthe year
Within one year (inclusive) 1489573102.24 1708338208.62
One to two years 152217296.67 163165760.88
Two to three years 131889796.60 267210849.90
Three to four years 265897663.73 671539902.08
Four to five years 674517508.86 692197002.61
Over five years 894028569.23 206463164.65
Total 3608123937.33 3708914888.74
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Carrying value
Amount Proportion
Provision
(%) Amount percentage(%)
Provision set
aside for bad
debts by the 1601967285.04 44.40 1524090371.01 95.14 77876914.03
single item
Provision set
aside for bad
debts by portfolio
Of which: Aging
portfolio 2006156652.29 55.60 357487593.24 17.82 1648669059.05
Subtotal of
portfolio 2006156652.29 55.60 357487593.24 17.82 1648669059.05
Total 3608123937.33 100.00 1881577964.25 52.15 1726545973.08
(Continued)
Opening balance
Category
Book balance Provision for bad debts Carrying value
212Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Proportion ProvisionAmount (%) Amount percentage(%)
Provision set
aside for bad
debts by the 1487466561.80 40.11 1350460284.27 90.79 137006277.53
single item
Provision set
aside for bad
debts by
portfolio
Of which:
Aging portfolio 2221448326.94 59.89 321719768.25 14.48 1899728558.69
Subtotal of
portfolio 2221448326.94 59.89 321719768.25 14.48 1899728558.69
Total 3708914888.74 100.00 1672180052.52 45.09 2036734836.22
1） Provision set aside for bad debts of accounts receivable by single item
Opening balance Closing balance
Name Provision Reasons
Book balance Provision for bad Book balance Provision for baddebts debts percentage for the(%) provision
Shanghai
Huaxin Expected to
International 299136676.70 293153943.17 299136676.70 293153943.17 98.00 be difficult
Group Co. to recover
Ltd.Hongtu
Sanbao High- Expected to
tech 200000000.00 160000000.00 200000000.00 180000000.00 90.00 be difficult
Technology to recover
Co. Ltd.Shenzhen Not
Yaode
Technology 143135135.62 121664865.28 145562210.29 145562210.29 100.00
expected to
be
Co. Ltd. recoverable
Guangan
Ouqishi Expected to
Electronic 113230553.53 110965942.46 113140553.53 110965942.46 98.08 be difficult
Technology to recover
Co. Ltd.Guangxi BG
New Expected to
Materials Co. 83396556.37 81728625.24 83396556.37 81728625.24 98.00 be difficult
Ltd. to recover
Zhongfu Expected to
Tiangong 71589096.65 53691822.49 71389096.65 53541822.49 75.00 be difficult
Construction to recover
Group Co.
213Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance Closing balance
Name
Provision for bad Provision for bad Provision ReasonsBook balance debts Book balance debts percentage for the(%) provision
Ltd.Gome
Customization Not
(Tianjin)
Home 59569295.02 35741577.01 59569295.02 59569295.02 100.00
expected to
be
Appliances recoverable
Co. Ltd.CCCC First Not
Harbor
Engineering 65221300.00 65221300.00 55438105.00 55438105.00 100.00
expected to
be
Company Ltd. recoverable
Xingda Not
Hongye (Hk) 51902301.95 51902301.95 51902301.95 51902301.95 100.00 expected to
Limited berecoverable
China Energy Not
Electric Fuel 50000000.00 50000000.00 50000000.00 50000000.00 100.00 expected to
Co. Ltd. berecoverable
Expected to
Others 350285645.96 326389906.67 472432489.53 442228125.39 93.61 be difficult
to recover
Total 1487466561.80 1350460284.27 1601967285.04 1524090371.01
2） Provision set aside for bad debts of accounts receivable by portfolio
Closing balance
Aging
Book balance Provision for bad Provision percentagedebts (%)
Within one year 1454252297.12 29667135.82 2.04
One to two years 91446278.07 9162526.34 10.02
Two to three years 107199985.50 24323676.70 22.69
Three to four years 167778579.76 108854742.54 64.88
Four to five years 34866178.32 34866178.32 100.00
Over five years 150613333.52 150613333.52 100.00
Total 2006156652.29 357487593.24 17.82
（3） Provision for bad debts of accounts receivable set aside recovered or reclassified in
the current year
214Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Change in the current year
Category Opening balance
Provision Recovery orreclassification
Provision for bad debts
of accounts receivable 1672180052.52 231993028.00 22759281.37
Total 1672180052.52 231993028.00 22759281.37
(Continued)
Change in the current year
Category Closing balance
Charge-off or write-off Decrease for otherreasons
Provision for bad debts
of accounts receivable 1527689.87 -1691854.97 1881577964.25
Total 1527689.87 -1691854.97 1881577964.25
Note: Decreases for other reasons were RMB-2671676.56 due to exchange rate changes in the
current year and the decrease by RMB979821.59 due to the loss of controlling right.
（4） Accounts receivable actually written off in the current year
Item Amount written off
Accounts receivable written off 1527689.87
（5） Top five accounts receivable and contract assets in the closing balance categorised by
debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the
current year was RMB1270247243.45 accounting for 35.21% of the total closing balance of
accounts receivable. The total closing balance of provision for bad debts correspondingly set aside
was RMB645731486.43.
5.Contract assets
（1） Contract assets
Closing balance Opening balance
Item Provision Book ProvisionBook balance for bad Carrying value balance for bad
Carrying
debts debts value
Warranty 2236000.34 45614.41 2190385.93
Total 2236000.34 45614.41 2190385.93
（2） Classified presentation of contract assets by provisioning methods of bad debts
Category Closing balance
215Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Book balance Provision for bad debts
Carrying
Amount Proportion Amount Provision value(%) percentage (%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 2236000.34 100.00 45614.41 2.04 2190385.93
Subtotal of portfolio 2236000.34 100.00 45614.41 2.04 2190385.93
Total 2236000.34 100.00 45614.41 2.04 2190385.93
（3） Provision set aside for bad debts of contract assets by portfolio
Closing balance
Aging
Book balance Provision for bad debts Provisionpercentage (%)
Within one year 2236000.34 45614.41 2.04
Total 2236000.34 45614.41
（4） Provision for bad debts of contract assets set aside recovered or reclassified in the
current year
Item Provision in the
Recovery or Charge-off/Write-off
current year reclassification in thecurrent year in the current year
Reasons
Warranty 54626.97 9012.56 Normal provision
Total 54626.97 9012.56
（5） Contract assets actually written off in the current year
There were no contract assets actually written off in the current year.
6.Accounts receivable financing
Item Closing balance Opening balance
Notes receivable 173396326.14 237187228.44
Total 173396326.14 237187228.44
7.Other accounts receivable
Item Closing balance Opening balance
Interest receivable 6681258.01 3878580.64
216Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Dividends receivable 941482.38 272999.43
Other accounts receivable 981498327.12 1437973265.51
Total 989121067.51 1442124845.58
7.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 6681258.01 3878580.64
Total 6681258.01 3878580.64
7.2 Dividends receivable
（1） Category of dividends receivable
Item (or investee) Closing balance Opening balance
Chongqing Qingjia Electronics Co.Ltd. 272999.43
Shenzhen Jielunte Technology Co.Ltd. 941482.38
Total 941482.38 272999.43
7.3 Other receivables
（1） Classified by account nature
Nature of fund Book balance at the end of the Book balance at the beginningyear of the year
Deposit and margin 1234840210.69 1411807968.60
Intercourse funds among minority
shareholders in the business consolidation
not under the same control and related 179663586.05 176571471.89
parties
Energy-saving subsidies receivable 152399342.00 152399342.00
Others 1496129924.02 1523970760.63
Total 3063033062.76 3264749543.12
（2） Other receivables listed by aging
Aging Book balance at the end of the Book balance at the beginning ofyear the year
Within one year 253550068.51 531774524.39
217Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
One to two years 77519916.42 551601162.73
Two to three years 551521166.18 688602155.02
Three to four years 690507047.29 1096771140.67
Four to five years 1092957617.71 201058646.10
Over five years 396977246.65 194941914.21
Total 3063033062.76 3264749543.12
（3） Classified presentation of other receivables by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Carrying value
Amount Proportion
Provision
(%) Amount percentage(%)
Other receivables of
expected credit
losses set aside by 1960682465.29 64.01 1644122039.53 83.85 316560425.76
single item
Other receivables of
provision for bad
debts set aside by
credit risk
characteristic
portfolio:
Of which: Aging
portfolio 975322848.99 31.84 413933906.39 42.44 561388942.60
Low-risk portfolio 127027748.48 4.15 23478789.72 18.48 103548958.76
Subtotal of portfolio 1102350597.47 35.99 437412696.11 39.68 664937901.36
Total 3063033062.76 100.00 2081534735.64 67.96 981498327.12
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Amount Proportion
Provision Carrying value
(%) Amount percentage(%)
Other receivables
of expected credit
losses set aside by 1461191467.51 44.76 1437476408.89 98.38 23715058.62
single item
Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
218Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Proportion Provision Carrying valueAmount (%) Amount percentage(%)
portfolio:
Of which: Aging
portfolio 1342397234.31 41.12 372315645.78 27.74 970081588.53
Low-risk portfolio 461160841.30 14.12 16984222.94 3.68 444176618.36
Subtotal of
portfolio 1803558075.61 55.24 389299868.72 21.59 1414258206.89
Total 3264749543.12 100.00 1826776277.61 55.95 1437973265.51
1） Provision set aside for bad debts of other receivables by portfolio
Closing balance
Aging
Book balance Provision for bad Provision percentagedebts (%)
Within one year 79420865.29 1443228.60 1.82
One to two years 73767052.51 2611493.16 3.54
Two to three years 532898477.68 120262928.40 22.57
Three to four years 255310443.57 163102411.35 63.88
Four to five years 43789758.21 32828634.39 74.97
Over five years 117164000.21 117164000.21 100.00
Total 1102350597.47 437412696.11 39.68
2） Provision set aside for bad debts of other receivables by the general expected credit
loss model
Phase I Phase II Phase III
Expected credit
Provision for bad Expected credit loss
debts Expected credit during the whole
loss during the Total
loss for the outstanding whole outstanding
next 12 months maturity (without maturity (with
credit impairment) creditimpairment)
Balance as of 1 January
20236475374.50382824494.221437476408.891826776277.61
Balance as of 1 January -796704.84 -43713266.78 44509971.62
219Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Phase I Phase II Phase III
Expected credit loss Expected creditProvision for bad
debts Expected credit during the whole
loss during the Total
loss for the outstanding whole outstanding
next 12 months maturity (without maturity (with
credit impairment) creditimpairment)
2023 in the current year
-- Transferred to Phase II -796704.84 796704.84
-- Transferred to Phase III -44509971.62 44509971.62
-- Reclassified under
Phase II
-- Reclassified under
Phase I
Provision in the current
year 1443552.70 121048531.32 161917015.87 284409099.89
Recovery in the current
year 5678993.76 24071209.19 318202.52 30068405.47
Charge-off in the current
year
Write-off in the current
year 68817.68 68817.68
Other changes -50264.38 536845.67 486581.29
Balance as at 31
December 2023 1443228.60 435969467.51 1644122039.53 2081534735.64
Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within one year the loss
provision is measured according to the expected credit losses in the next 12 months.The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed one year the loss provision is measured based on the expected credit losses
for the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred the loss provision is measured according to the credit losses that
have occurred throughout the duration.Provision for bad debts of other receivables set aside recovered or reclassified in the current
year
Category Openingbalance Change in the current year Closing balance
220Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Provision Recovery or
Charge-off
reclassification or write- Othersoff
Provision
for bad
debts of 1826776277.61 284409099.89 30068405.47 68817.68 -486581.29 2081534735.64
other
receivables
Total 1826776277.61 284409099.89 30068405.47 68817.68 -486581.29 2081534735.64
Note: Decreases for other reasons were RMB-490091.29 due to exchange rate changes and the
decrease by RMB3510 due to the loss of controlling right.
（5）Other receivables actually written off in the current year
Item Amount written off
Other accounts receivable written off 68817.68
（6）Other receivables with top five year-end balances categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the
current year was RMB1370349125.97 accounting for 44.74% of the total closing balance of
other receivables. The total closing balance of provision for bad debts correspondingly set aside
was RMB746602773.17.
8.Prepayments
（1） Age of prepayments
Closing balance Opening balance
Item
Amount Proportion (%) Amount Proportion (%)
Within one year 114332392.60 69.10 332218631.50 85.20
One to two years 827985.04 0.50 52945431.22 13.58
Two to three years 46545996.66 28.13 4191405.92 1.07
Over three years 3747937.21 2.27 592183.75 0.15
Total 165454311.51 100.00 389947652.39 100.00
Note: The amount of advanced payments aged over one year at the end of the period is
RMB51121918.91 accounting for 30.90% of the total balance of advanced payments of the
Company and consists mainly of unsettled payments.
（2） Top five prepayments in the closing balance categorised by payees
The total amount of prepayments with top five closing balance categorised by payees was
RMB100270755.74 accounting for 60.60% of the total closing balance of prepayments.
221Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
9.Inventory
（1）Inventory classification
Closing balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 593131602.70 86829664.81 506301937.89
Semi-finished products 96408258.96 41741196.19 54667062.77
Commodities in stock 2636678840.40 490032803.73 2146646036.67
Commissioned products 1934264.95 211225.91 1723039.04
Contract fulfilment costs
Development costs 540559624.61 540559624.61
Total 3868712591.62 618814890.64 3249897700.98
(Continued)
Opening balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 1168223234.28 64695751.94 1103527482.34
Semi-finished products 145186803.18 37339815.90 107846987.28
Commodities in stock 3316097782.82 270664206.34 3045433576.48
Commissioned products 2862799.75 2862799.75
Contract fulfilment costs 254159.33 254159.33
Development costs 149842751.04 149842751.04
Total 4782467530.40 372699774.18 4409767756.22
（2） Inventory falling price reserves and impairment provision of contract performance
costs
Increase in the current year
Item Opening balance
Withdrawal Others
222Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Increase in the current year
Item Opening balance
Withdrawal Others
Raw materials 64695751.94 34137020.94
Semi-finished products 37339815.90 7240010.26
Commodities in stock 270664206.34 330144533.95
Commissioned products 212034.71
Total 372699774.18 371733599.86
(Continued)
Decrease in the current year
Item Closing balance
Write-off Others
Raw materials 12546636.83 -543528.76 86829664.82
Semi-finished products 2838629.97 41741204.42
Commodities in stock 110287169.31 488767.25 490032795.49
Commissioned products 808.80 211225.91
Total 125672436.11 -53952.71 618814890.64
Specific basis for determining the realisable net value and reasons for inventory falling price
reserves and impairment provision for contract performance costs transferred back or written off
during the Reporting Period:
Item Specific basis for withdrawal of
Reasons for charge-off of provision
inventory falling price reserves for inventories impairment in thecurrent year
Raw materials The realisable net value was lower than They have been sold or used in thethe carrying value current year
Semi-finished products The realisable net value was lower than They have been sold or used in thethe carrying value current year
Commodities in stock The realisable net value was lower than They have been sold in the currentthe carrying value year
10.Current portion of non-current assets
Item Closing balance Opening balance Nature
Long-term receivables due
within one year 14630000.00 Finance lease payment
Total 14630000.00
223Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
11.Other current assets
Item Closing balance Opening balance
Principal and interests of
entrusted loans to associated 1744123316.97 1544592633.44
enterprises
Prepayments and deductible
taxes and refund of tax for 569875346.61 457991464.58
export receivable
Deferred expenses 28112001.12 17278894.58
Costs receivable for returning
goods 15925346.67 14214651.96
Others 1123457.38 4763581.27
Total 2359159468.75 2038841225.83
12.Long-term receivables
Closing balance
Item Provision
Book balance for bad Carrying value
debts
Finance lease payment
Including: Unrealised financing income
Cash deposits of long-term receivables
Long-term receivables from franchise items
Less: Long-term receivables due within one year
(See Note Vi-10 for details)
Total
(Continued)
Opening balance
Item Provision
Book balance for bad Carrying value
debts
Finance lease payment
Including: Unrealised financing income
Cash deposits of long-term receivables 15430400.00 15430400.00
Long-term receivables from franchise items
Less: Long-term receivables due within one year
14630000.0014630000.00
(See Note Vi-10 for details)
224Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance
Item Provision
Book balance for bad Carrying value
debts
Total 800400.00 800400.00
225Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
13.Long-term equity investment
Changes in the current year
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Konka Ventures Development (Shenzhen)
Co. Ltd. (formerly known as "Konka
Ventures Development (Shenzhen) Co. 4963158.89 41420.73
Ltd.")
Nanjing Zhihuiguang Information
Technology Research Institute Co. Ltd. 1686591.04 332696.32
Feidi Technology (Shenzhen) Co. Ltd. 10591603.87 115303.85
Shenzhen Kangyue Enterprise Co. Ltd. 32232415.88 -7255087.00
Foshan Zhujiang Media Creative Park
Cultural Development Co. Ltd. 2834367.04 -2834367.04
Kangkai Technology Service (Chengdu)
Co. Ltd. 209048.32 -94854.53
Puchuang Jiakang Technology Co Ltd. 3658484.71 57790.00
Chongqing Qingjia Electronics Co. Ltd. 5831185.33 5831185.33
Shenzhen Jielunte Technology Co. Ltd. 99748594.97 -3889533.49
Panxu Intelligence Co. Ltd. 51392171.46 -2410150.21 -295544.14
Orient Excellent (Zhuhai) Asset 7482864.06 1115710.93
226Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Management Co. Ltd.Dongfang Jiakang No.1 (Zhuhai) Private
Equity Investment Fund (LP) (formerly:
Dongfang Konka No. 1 (Zhuhai) Private 483905786.35 161022858.56 15206372.63
Equity Investment Fund (LP))
Tongxiang Wuzhen Kunyu Venture Capital
Investment Co. Ltd. (formerly: Tongxiang
Wuzhen Kunyu Equity Investment Co. 3527761.64 -3724.56
Ltd.)
Shenzhen RF-Llink Technology Co. Ltd.Anhui Kaikai Shijie E-commerce Co. Ltd. 418721305.96 93109.02
Kunshan Kangsheng Investment
Development Co. Ltd. 313484693.57 -52251209.71
Chutian Dragon Co. Ltd. 523726463.18 109831325.31
Shanxi Silk Road Cloud Intelligent Tech
Co. Ltd. 13333698.78 -8144973.65 -1136.65
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd.Shenzhen Zhongkang Beidou Technology
Co. Ltd. (formerly named: Shenzhen
227Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Zhongbing Konka Technology Co. Ltd.)
Shenzhen Yaode Technology Co. Ltd.Wuhan Tianyuan Environmental Protection
Co. Ltd. 352295640.91 35840487.27
Chuzhou Konka Technology Industry
Development Co. Ltd. 49658397.02 -10322848.45
Chuzhou Kangjin Health Industrial
Development Co. Ltd. 275858698.37 -36821079.39
Nantong Kangjian Technology Industrial
Park Operations and Management Co. Ltd. 107310029.86
Chuzhou Kangxin Health Industry
Development Co. Ltd. 183310823.25 -2558013.46
Dongguan Guankang Yuhong Investment
Co. Ltd. 521341722.37 -19932783.45
Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Shandong Econ Technology Co. Ltd. 1246099855.22 -29643085.83
Dongguan Kangjia New Materials
Technology Co. Ltd.. 6951651.72 -93956.95
228Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Chongqing E2info Technology Co. Ltd. 1023251062.59 31709517.46
Yantai Kangyun Industrial Development
Co. Ltd. 72320476.84 -6436090.68
E3info (Hainan) Technology Co. Ltd. 30708255.04 7423.93
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. Ltd. 5371364.87 1719225.60
Shenzhen KONKA E-display Co. Ltd. 82221081.72 2827700.92 8655.99
Chongqing Yuanlv Benpao Real Estate
Co. Ltd. 33721573.96 -5631658.14
Shenzhen Kangpeng Digital Technology
Co. Ltd. 3411153.10 -1641132.09
Yantai Kangtang Construction
Development Co. Ltd. 232597.64 629796.43
Dongguan Konka Smart Electronic
Technology Co. Ltd. 23998624.46 125519.24
Guangdong Fanzhou Information
Technology Co. Ltd. (formerly: Sichuan 121403.90 121403.90
Huayi Jiakang Technology Co. Ltd.)
Shenzhen Aimijiakang Technology Co. 1585761.09 -411890.52
229Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Ltd. (formerly: Sichuan Aimijiakang
Technology Co. Ltd.)
Beijing Konka Jingyuan Technology Co.Ltd. 733832.84 -30129.42
Chongqing Liangshan Enterprise
Management Co. Ltd. 121802.33 56566.20
Shenzhen Kangxi Technology Innovation
Development Co. Ltd. 967323.92 58982.15
Shandong Kangfei Intelligent Electrical
Appliances Co. Ltd. 1373981.26 -1128069.63
Henan Kangfei Intelligent Electric
Appliance Co. Ltd. 1182963.46 756730.88
Guangdong Kangyuan Semiconductor Co.Ltd. 12777082.28 -2941875.24
Chongqing Kangyiqing Technology Co.Ltd. 1010683.91 -376964.82
Shenzhen Kangying Semiconductor
Technology Co. Ltd. 13254520.44 -10884240.61 116614.86
KK Smartech Limited 1641595.45 -29444.89
Chongqing Kangjian Photoelectric 11493032.21 -3163900.43
230Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Technology Co. Ltd.Anhui Kangta Supply Chain
Management Co. Ltd. 18060000.00 -803400.15
Wuhan Kangtang Information Technology
Co. Ltd. 26654950.30 -897727.70
Sichuan Chengrui Real Estate Co. Ltd. 41423514.93 -9714522.86
Konka Industrial Development (Wuhan)
Co. Ltd. 43290693.00 -1156461.11
Hefei KONSEMI Storage Technology Co.Ltd. 180146610.27 -35576608.88 -7740.71
Xi'an Kang'an Intelligent Storage
Technology Co. Ltd. 6000000.00
Sichuan Hongxinchen Real Estate
Development Co. Ltd. 54880000.00 -945404.40
Total 6351232955.58 6000000.00 276806773.10 54880000.00 -167423944.75 -86041.63
(Continued)
Investee Changes in the current year Closing balance Closing balance of
the provision for
231Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in other Cash dividends orprofits declared to Provision set asideequities Othersbe distributed for impairment
Konka Ventures Development
(Shenzhen) Co. Ltd. (formerly known as
"Konka Ventures Development 5004579.62
(Shenzhen) Co. Ltd.")
Nanjing Zhihuiguang Information
Technology Research Institute Co. Ltd. 2019287.36
Feidi Technology (Shenzhen) Co. Ltd. 10706907.72
Shenzhen Kangyue Enterprise Co. Ltd. 24977328.88 24977328.88
Foshan Zhujiang Media Creative Park
Cultural Development Co. Ltd.Kangkai Technology Service (Chengdu)
Co. Ltd. 114193.79
Puchuang Jiakang Technology Co Ltd. 1000000.00 2716274.71
Chongqing Qingjia Electronics Co. Ltd.Shenzhen Jielunte Technology Co. Ltd. 941486.48 94917575.00
Panxu Intelligence Co. Ltd. 48686477.11
Orient Excellent (Zhuhai) Asset
Management Co. Ltd. 400000.00 8198574.99
232Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Closing balance of
Investee Changes in other Cash dividends or Closing balance the provision for
equities profits declared to
Provision set aside
be distributed for impairment
Others impairment
Dongfang Jiakang No.1 (Zhuhai) Private
Equity Investment Fund (LP) (formerly:
Dongfang Konka No. 1 (Zhuhai) Private 338089300.42
Equity Investment Fund (LP))
Tongxiang Wuzhen Kunyu Venture
Capital Investment Co. Ltd. (formerly:
Tongxiang Wuzhen Kunyu Equity 3524037.08
Investment Co. Ltd.)
Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co.Ltd. 418814414.98
Kunshan Kangsheng Investment
Development Co. Ltd. 53900000.00 207333483.86
Chutian Dragon Co. Ltd. -413895137.87
Shanxi Silk Road Cloud Intelligent Tech
Co. Ltd. 5187588.48
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd. 12660222.73
Shenzhen Zhongkang Beidou
Technology Co. Ltd. (formerly named:
Shenzhen Zhongbing Konka Technology
233Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Closing balance of
Investee Changes in other Cash dividends or Provision set aside Closing balance the provision for
equities profits declared to for impairment Others impairmentbe distributed
Co. Ltd.)
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental
Protection Co. Ltd. 127671222.93 3078000.00 512729351.11
Chuzhou Konka Technology Industry
Development Co. Ltd. 39335548.57
Chuzhou Kangjin Health Industrial
Development Co. Ltd. 239037618.98
Nantong Kangjian Technology Industrial
Park Operations and Management Co. 107310029.86
Ltd.Chuzhou Kangxin Health Industry
Development Co. Ltd. 180752809.79
Dongguan Guankang Yuhong Investment
Co. Ltd. 501408938.92
Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Shandong Econ Technology Co. Ltd. -4074486.01 81806510.02 1130575773.36 81806510.02
234Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Closing balance of
Investee Changes in other Cash dividends or Provision set aside Closing balance the provision for
equities profits declared to for impairment Others impairmentbe distributed
Dongguan Kangjia New Materials
Technology Co. Ltd.. 6857694.77
Chongqing E2info Technology Co. Ltd. -5977391.99 1048983188.06
Yantai Kangyun Industrial Development
Co. Ltd. 65884386.16
E3info (Hainan) Technology Co. Ltd. 30715678.97
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. 7090590.47
Ltd.Shenzhen KONKA E-display Co. Ltd. 85057438.63
Chongqing Yuanlv Benpao Real Estate
Co. Ltd. 28089915.82
Shenzhen Kangpeng Digital Technology
Co. Ltd. 1770021.01
Yantai Kangtang Construction
Development Co. Ltd. 862394.07
Dongguan Konka Smart Electronic
Technology Co. Ltd. 24124143.70
235Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Closing balance of
Investee Changes in other Cash dividends or Provision set aside Closing balance the provision for
equities profits declared to for impairment Others impairmentbe distributed
Guangdong Fanzhou Information
Technology Co. Ltd. (formerly: Sichuan
Huayi Jiakang Technology Co. Ltd.)
Shenzhen Aimijiakang Technology Co.Ltd. (formerly: Sichuan Aimijiakang 1173870.57
Technology Co. Ltd.)
Beijing Konka Jingyuan Technology Co.Ltd. 703703.42
Chongqing Liangshan Enterprise
Management Co. Ltd. 178368.53
Shenzhen Kangxi Technology Innovation
Development Co. Ltd. 1026306.07
Shandong Kangfei Intelligent Electrical
Appliances Co. Ltd. 245911.63
Henan Kangfei Intelligent Electric
Appliance Co. Ltd. 1939694.34
Guangdong Kangyuan Semiconductor
Co. Ltd. 122000.00 9957207.04
Chongqing Kangyiqing Technology Co.Ltd. 633719.09
236Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Closing balance of
Investee Changes in other Cash dividends or Provision set aside Closing balance the provision for
equities profits declared to for impairment Others impairmentbe distributed
Shenzhen Kangying Semiconductor
Technology Co. Ltd. 16852760.53 19339655.22
KK Smartech Limited 1612150.56
Chongqing Kangjian Photoelectric
Technology Co. Ltd. 8329131.78
Anhui Kangta Supply Chain
Management Co. Ltd. 17256599.85
Wuhan Kangtang Information
Technology Co. Ltd. 25757222.60
Sichuan Chengrui Real Estate Co. Ltd. 31708992.07
Konka Industrial Development (Wuhan)
Co. Ltd. 42134231.89
Hefei KONSEMI Storage Technology
Co. Ltd. 44092024.98 188654285.66
Xi'an Kang'an Intelligent Storage
Technology Co. Ltd. 6000000.00
Sichuan Hongxinchen Real Estate
Development Co. Ltd. 53934595.60
237Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Closing balance of
Investee Changes in other Cash dividends or Closing balance the provision for
equities profits declared to
Provision set aside
be distributed for impairment
Others impairment
Total 178686130.44 59319486.48 106783838.90 -413895137.87 5566483863.29 419659558.33
Note 1: The above investees are all associates.Note 2: "Other" represents the conversion of long-term equity investments accounted for under the equity method to financial assets.
238Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
14. Other equity instrument investments
14.1 Other equity instrument investments
Item Closing balance Opening balance
Shenzhen Tianyilian Science & Technology Co.Ltd.Shenzhen Adopt Network Co. Ltd.Beijing Huyu Digital Technology Co. Ltd.(formerly: Beijing Aowei Mutual Entertainment 5901121.80 5901121.80
Technology Co. Ltd.)
Feihong Electronics Co. Ltd.ZAEFI
Shenzhen Chuangce Investment Development
Co. Ltd.Shanlian Information Technology Engineering
Centre 1860809.20 1860809.20
Shenzhen CIU Science & Technology Co. Ltd. 953000.00 953000.00
Shenzhen Digital TV National Engineering
Laboratory Co. Ltd. 7726405.16 7726405.16
Shanghai National Engineering Research Centre
of Digital TV Co. Ltd. 2400000.00 2400000.00
BOHUA UHD 5000001.00 5000001.00
Total 23841337.16 23841337.16
239Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
14.2 Investments in non-trading equity instruments in the current year
Dividend
income Amount of other Reason for assigning to Reason for other
Item recognised in Accumulative Accumulative comprehensive measure in fair value of comprehensive
the current gains losses income transferred to which changes included income transferred
year retained earnings other comprehensive income to retained earnings
Shenzhen Tianyilian Science & Technology Co.Ltd. 4800000.00
Long-term holding based on
strategic purpose
Shenzhen Adopt Network Co. Ltd. Long-term holding based onstrategic purpose
Beijing Huyu Digital Technology Co. Ltd.(formerly: Beijing Aowei Mutual Entertainment 98878.20 Long-term holding based on
Technology Co. Ltd.) strategic purpose
Feihong Electronics Co. Ltd. 1300000.00 Long-term holding based onstrategic purpose
ZAEFI 100000.00 Long-term holding based onstrategic purpose
Shenzhen Chuangce Investment Development Co.Ltd. 485000.00
Long-term holding based on
strategic purpose
Shanlian Information Technology Engineering 3139190.80 Long-term holding based onCentre strategic purpose
Shenzhen CIU Science & Technology Co. Ltd. 200000.00 Long-term holding based onstrategic purpose
Shenzhen Digital TV National Engineering
Laboratory Co. Ltd. 1273594.84
Long-term holding based on
strategic purpose
240Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Dividend
income Amount of other Reason for assigning to Reason for other
Item recognised in Accumulative Accumulative comprehensive measure in fair value of comprehensive
the current gains losses income transferred to which changes included income transferred
year retained earnings other comprehensive income to retained earnings
Shanghai National Engineering Research Centre of Long-term holding based on
Digital TV Co. Ltd. strategic purpose
BOHUA UHD Long-term holding based onstrategic purpose
Total 11396663.84
241Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
15. Other non-current financial assets
Item Closing balance Opening balance
China Asset Management-Jiayi Overseas Designated Plan 200732067.00 200732067.00
Tianjin Huacheng Property Development Co. Ltd. 1000000.00 1000000.00
Tianjin Property No. 8 Enterprise Management Partnership
(Limited Partnership) 28540777.26 28540777.26
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 66080293.70 66080293.70
Daye Trust Co. Ltd. 100000000.00 100000000.00
Yibin OCT Sanjiang Properties Co. Ltd. 199774696.09 171141605.35
Yili Ecological Restoration Co. Ltd. 41812139.03
Kunshan Xinjia Emerging Industry Equity Investment Fund
Partnership (Limited Partnership) 231190200.00 233834173.06
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity
Investment Partnership (Limited Partnership) 201451000.00 195312419.69
Yibin Kanghui Electronic Information Industry Equity Investment
Partnership (Limited Partnership) 60292000.00 67706235.45
Chuzhou Jiachen Information Technology Consulting Service
Partnership (Limited Partnership) 59700013.59 59700013.59
Yancheng Kangyan Information Industry Investment Partnership
(Limited Partnership) 162937428.56 167230693.52
Chongqing Kangxin Equity Investment Fund Limited Partnership
(Limited Partnership) 155691200.00 146160043.51
Shenzhen Kanghuijia Technology Co. Ltd. 7684.53 10137.30
Subtotal of equity investments 1467397360.73 1479260598.46
Chuzhou Huike Smart Household Appliances Industry Investment
Partnership (Limited Partnership) 626244139.25
Ningbo Yuanqing No. 9 Investment Partnership 148855198.11 148855198.11
Shenzhen Beihu Technology Partnership (Limited Partnership) 59735232.88 58000000.00
Shanxi Kangmengrong Enterprise Management Consulting
Partnership (Limited Partnership) 9163411.30 9163411.30
Nanjing Kangfeng Dejia Asset Management Partnership (Limited
Partnership) 100000000.00 100000000.00
Shenzhen Gaohong Enterprise Consulting Management Partnership
(Limited Partnership) 109739999.99 100000000.00
242Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Shenzhen Zitang No.1 Enterprise Consulting Management
Partnership (Limited Partnership) 99000000.00 100386000.00
Xi'an Bihuijia Enterprise Management Consulting Partnership
(Limited Partnership) 15785194.99 17752926.20
Subtotal of debt investments 542279037.27 1160401674.86
Total 2009676398.00 2639662273.32
16. Investment property
(1) Investment properties measured at cost
Item Land use right Properties and buildings Total
I. Original carrying value
1. Opening balance 46121506.92 873265339.70 919386846.62
2. Increase in the current year 45716182.38 694497260.36 740213442.74
(1) External purchase
(2) Fixed assets\construction
in progress\transfer of 45716182.38 694497260.36 740213442.74
intangible assets
3. Decrease in the current year 9651872.39 9651872.39
(1) Disposal 9651872.39 9651872.39
(2) Other transfer out
4. Closing balance 91837689.30 1558110727.67 1649948416.97
II. The accumulative
depreciation and accumulative
amortisation
1. Opening balance 8602890.38 108376111.64 116979002.02
2. Increase in the current year 12938742.42 51685511.31 64624253.73
(1) Provision or amortisation 12938742.42 51685511.31 64624253.73
3. Decrease in the current year 1881562.65 1881562.65
(1) Disposal 1881562.65 1881562.65
(2) Other transfer out
243Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Land use right Properties and buildings Total
4. Closing balance 21541632.80 158180060.30 179721693.10
III. Provision for impairment
1. Opening balance
2. Increase in the current year
(1) Provision
3. Decrease in the current year
(1) Disposal
(2) Other transfer out
4. Closing balance
IV. Carrying value
1. Closing carrying value 70296056.50 1399930667.37 1470226723.87
2. Opening carrying value 37518616.54 764889228.06 802407844.60
(2) Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the Reporting Period.
(3) Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
(4) Investment properties in the process of title certificate handling
Item Carrying value Reason that the certificate oftitle was not completed
In the process of project closure
Konka Standard Electronic Product project closure will not be
Plants Project in Sunning 379447349.50 processed until the project is
completed.Total 379447349.50
(5) Investment properties with restricted ownership or use rights
Item Closing carrying value Reasons for the restriction
Konka Guangming Technology Centre 585984804.04 Mortgage loan
Total 585984804.04
244Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
17. Fixed assets
Item Closing carrying value Opening carrying value
Fixed assets 5218297745.16 4114029693.38
Liquidation of fixed assets
Total 5218297745.16 4114029693.38
245Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
17.1 Fixed Assets
（1） Fixed assets
Item Properties and Machinery and Transportbuildings equipment Electronic equipment equipment Other equipment Total
I. Original carrying value
1. Opening balance 2860293710.15 3103345131.12 302309738.49 59879173.09 186025451.11 6511853203.96
2. Increased amount of the
period 1299077259.43 279351764.21 30227593.48 1761050.75 8352110.55 1618769778.42
(1) Purchase 325596840.93 139864293.96 20346382.12 1760819.64 7190109.12 494758445.77
(2) Transfer-in of
construction in progress 967772669.04 139487470.25 9816998.15 944067.26 1118021204.70
(3) Increase through
consolidation
(4) Other transfer-in 5707749.46 64213.21 231.11 217934.17 5990127.95
3. Decreased amount of the
period 95152152.59 61816110.53 30348819.09 5704442.53 5133921.78 198155446.52
(1) Disposal or write-off 19526320.70 60265701.84 30004311.36 5704442.53 5062497.96 120563274.39
(2) Decrease for loss of
controlling right 246216.18 28066.87 274283.05
(3) Other decreases 75625831.89 1550408.69 98291.55 43356.95 77317889.08
4. Ending balance 4064218816.99 3320880784.80 302188512.88 55935781.31 189243639.88 7932467535.86
246Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Properties and Machinery and Transportbuildings equipment Electronic equipment equipment Other equipment Total
II. Accumulated depreciation
1. Opening balance 673384702.71 1258513887.86 201688344.85 42829692.30 114585141.99 2291001769.71
2. Increased amount of the
period 88238734.15 253047208.96 25797795.95 4288186.59 14983833.20 386355758.85
(1) Provision 88140964.08 253047208.96 25774051.55 4286640.96 14975209.95 386224075.50
(2) Increase through
consolidation
(3) Other increase 97770.07 23744.40 1545.63 8623.25 131683.35
3. Decreased amount of the
period 20779007.06 45806853.16 27335857.31 5023692.07 4435014.79 103380424.39
(1) Disposal or write-off 8277772.35 44360911.18 27123276.68 5023692.07 4421359.72 89207012.00
(2) Decrease for loss of
controlling right 142275.35 10096.45 152371.80
(3) Other decreases 12501234.71 1445941.98 70305.28 3558.62 14021040.59
4. Ending balance 740844429.80 1465754243.66 200150283.49 42094186.82 125133960.40 2573977104.17
III. Provision for impairment
1. Opening balance 23987527.51 75533448.92 1351990.45 827482.72 5121291.27 106821740.87
2. Increased amount of the 38394135.80 1953399.08 20675.15 239490.37 40607700.40
247Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Properties and Machinery andbuildings equipment Electronic equipment
Transport
equipment Other equipment Total
period
(1) Provision 38394135.80 1953399.08 20675.15 239490.37 40607700.40
3. Decreased amount of the
period 6667685.91 515589.11 6712.58 46767.14 7236754.74
(1) Disposal or write-off 6667685.91 515589.11 6712.58 46767.14 7236754.74
(2) Other decrease
4. Ending balance 23987527.51 107259898.81 2789800.42 841445.29 5314014.50 140192686.53
IV. Carrying value
1. Ending carrying value 3299386859.68 1747866642.33 99248428.97 13000149.20 58795664.98 5218297745.16
2. Opening carrying value 2162921479.93 1769297794.34 99269403.19 16221998.07 66319017.85 4114029693.38
248Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(2) List of temporarily idle fixed assets
Item Original carrying Accumulated Provision forvalue depreciation impairment Carrying value
Machinery and
equipment 817733189.57 405918829.25 87442687.20 324371673.12
Electronic
equipment 8275226.50 6047459.25 111084.51 2116682.74
Transport
equipment 3887229.49 3603831.64 20675.15 262722.70
Properties and
buildings 264495526.66 140592457.98 7899900.07 116003168.61
Other equipment 1530288.55 860946.31 286304.40 383037.84
Total 1095921460.77 557023524.43 95760651.33 443137285.01
(3) Fixed assets leased out through operating leases
Item Closing carrying value
Electronic equipment 260911.84
Machinery and equipment 23973121.72
Other equipment 384458.99
Transport equipment 13785.92
Total 24632278.47
(4) Details of fixed assets failed to accomplish certification of property
Reason
that the
Item Original carrying Accumulated
Provision certificate
value depreciation for Net book valueimpairment of title wasnot
completed
Ankang's plants 603604487.36 33087555.67 570516931.69 Beinghandled
Housing and buildings
of Chongqing Konka 453857134.27 9842056.02 444015078.25
Being
handled
Fenggang Konka
Intelligent Colour TV 425011644.82 3984484.17 421027160.65 BeingProject (Part I) handled
property
Frestec Smart Home 404782206.92 867390.46 403914816.46 Being
properties and handled
249Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Reason
that the
Item Original carrying Accumulated
Provision certificate
value depreciation for Net book valueimpairment of title wasnot
completed
buildings
Yikang Building
property 76610752.33 42076014.80 34534737.53
Being
handled
Boluo Printing Plate
Phase III Plant 51746373.49 831638.15 50914735.34
Being
handled
Jingyuan Building
property 7700000.00 4244612.05 3455387.95
Being
handled
Standard electronic
product plants in 1544085.19 72504.88 1471580.31 Being
Sunning handled
Total 2024856684.38 95006256.20 1929850428.18
250Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(5) Impairment test of fixed assets
During the Reporting Period the Company conducted impairment tests on the fixed assets of Anhui Konka Electronic Co. Ltd. Suining Konka Smart Technology
Co. Ltd. GuangDong XingDa HongYe Electronic Co. Ltd. Henan Frestec Refrigeration Appliance Co. Ltd. and Jiangxi Konka New Material Technology Co.Ltd. determined their recoverable amounts based on the net fair value less disposal costs and recognised an impairment loss on assets of RMB40607700.4.Item Carrying value Recoverable Impairment Determination of fair value Keyamount amount and disposal costs parameters Basis for determining key parameters
1. Instruments and machinery
equipment: fair value = recovery Recovery unit
1. The recovery unit price is determined by
the net price of disposal of waste materials
unit price × equipment weight; price (dismantling and transportation costs are all
Disposal costs = brokerage equipment
Anhui Konka electronic weight borne by the recovery unit); 2. The
equipment 1952063.48 53097.35 1898966.13
services
quantity of equipment weight is weighed on-site; 3. The
2. Electronic equipment: fair equipment quantity of the equipment is determined by an
value = recovery unit price × brokerage on-site inventory; 4. Intermediary service
quantity of equipment; Disposal services fees mainly include appraisal fees and
costs = brokerage services intermediary fees for trading platforms.
1. The recovery unit price is determined by
Recovery unit the net price of disposal of waste materialsFair value = recovery unit price
Automatic production price quantity (dismantling and transportation costs are all× quantity of equipment;
line of Suining Konka 9851152.18 6896106.95 2955045.23 of equipment born by the recovery unit); 2. The quantity of
Smart Disposal costs = intermediary intermediary the equipment is determined by an on-site
service fees service fees inventory; 3. Intermediary service feesinclude mainly appraisal fees and
intermediary fees for trading platforms.
1. The recovery unit price is determined by
the net price of disposal of waste materials
Fair value = recovery unit price Recovery unit
Machinery equipment of price quantity
(dismantling and transportation costs are all
XingDa HongYe 1973454.42 392931.04 1580523.38
× quantity of equipment; born by the recovery unit); 2. The quantity of
Disposal costs = brokerage of equipmentbrokerage the equipment is determined by an on-siteservices services inventory; 3. Intermediary service feesinclude mainly appraisal fees and
intermediary fees for trading platforms.
251Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Carrying value Recoverable Impairment Determination of fair value Keyamount amount and disposal costs parameters Basis for determining key parameters
1. Replacement costs: The costs are
determined mainly by directly requesting
quotations from dealers or manufacturers or
by referring to price lists on website
Replacement platforms; 2. Comprehensive newness rate: It
costs take into account various factors such as the
comprehensive current technical status of the equipment
newness rate tangible and intangible losses; 3. Economic
Fair value = replacement costs x Economic depreciation rate = (1 - (equipment is
comprehensive newness rate x (1 depreciation expected to be utilized production capacity /
- Economic depreciation rate);
Machinery equipment of rate equipment original design production
Frestec Refrigeration 7949779.02 2857105.30 5092673.72 Disposal costs = dismantling dismantling capacity) ^ economies of scale index) ×
fees and transportation and fees 100%. Economy of scale index that is
miscellaneous fees + transportation empirical data take the value of the
intermediary service fees and processing industry is generally 0.7; 4.miscellaneous Dismantling fees and transportation and
fees miscellaneous fees: They are determined by
intermediary referring to the Handbook of Commonly
service fees Used Methods and Parameters for Asset
Appraisal and empirical data; 5. Intermediary
service fees: The fees mainly comprises
appraisal fees and the intermediary fees for
trading platforms.Replacement 1. Replacement costs: The costs are
Fair value = replacement costs x costs determined mainly by directly requesting
comprehensive newness rate x (1 comprehensive quotations from dealers or manufacturers or
- Economic depreciation rate); newness rate by referring to price lists on website
Production line of Economic platforms; 2. Comprehensive newness rate: It
Jiangxi Konka 449815738.10 420735246.16 29080491.94 Disposal costs = dismantling depreciation take into account various factors such as the
fees and transportation and rate current technical status of the equipment
miscellaneous fees + dismantling tangible and intangible losses; 3. Economic
intermediary service fees fees depreciation rate = (1 - (equipment is
transportation expected to be utilized production capacity /
and equipment original design production
252Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Carrying value Recoverable Impairment Determination of fair value Keyamount amount and disposal costs parameters Basis for determining key parameters
miscellaneous capacity) ^ economies of scale index) ×
fees 100%. Economy of scale index that is
intermediary empirical data take the value of the
service fees processing industry is generally 0.7; 4.Dismantling fees and transportation and
miscellaneous fees: They are determined by
referring to the Handbook of Commonly
Used Methods and Parameters for Asset
Appraisal and empirical data; 5. Intermediary
service fees: The fees mainly comprises
appraisal fees and the intermediary fees for
trading platforms.Total 471542187.20 430934486.80 40607700.40 - - -
253Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(6) Fixed Assets with Restricted Ownership or Use Right
Item Closing carrying value Reasons for the restriction
Anhui Konka's buildings 601293059.60 Mortgage loan
Housing and buildings of Chongqing
Konka 337145406.93 Mortgage loan
Properties and buildings of Shanxi
Konka Intelligent 321704287.16 Mortgage loan
Housing and buildings of Anhui
Tongchuang 140196525.72 Mortgage loan
Housing and buildings of Frestec
Refrigeration 81616033.52 As collateral for finance lease
Machinery equipment of XingDa
HongYe 67632465.17 As collateral for finance lease
Buildings of Konka Group 63063516.77 Mortgage loan
Housing and buildings of Jiangsu
Konka Intelligent 35470487.60 Mortgage loan
Housing and buildings of XingDa
HongYe 30836709.44 Mortgage loan
Machinery equipment of Xinfeng
Microcrystalline 8137181.77 As collateral for finance lease
Housing and buildings of Jiangxi
Konka 2506636.50
Original shareholder guarantee
mortgage
Total 1689602310.18
254Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
18. Construction in progress
(1) Construction in progress
Closing balance Opening balance
Item
Book balance Provision for Carrying value Book balance Provision forimpairment impairment Carrying value
Chongqing Konka Semiconductor
Optoelectronics Park Project 349269.02 349269.02 197885487.81 197885487.81
Guangming Project 466051847.89 466051847.89
Jiangxi High-permeability Crystalisation
Kiln 246576748.57 46755148.57 199821600.00 246576748.57 20068730.37 226508018.20
Dongguan Konka New Industrial Park 398018288.30 398018288.30
Construction of Suining Electronic
Industrial Park Workshops 177516258.23 177516258.23 221981375.38 221981375.38
Frestec Smart Home Appliances Park 994166.33 994166.33 113146458.03 113146458.03
Suining Konka Hongye Plant Decoration
Project 76141438.86 76141438.86 1955898.52 1955898.52
Dishwasher Project of Jiangxi Konka 55685802.09 55685802.09 1166575.23 1166575.23
Production Line Renovation Project of
Jiangxi Konka 85861185.36 12518073.84 73343111.52 84917611.92 647975.66 84269636.26
Other projects 319798751.76 42750899.13 277047852.63 322694187.33 43316395.88 279377791.45
255Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Item
Book balance Provision forimpairment Carrying value Book balance
Provision for
impairment Carrying value
Total 962923620.22 102024121.54 860899498.68 2054394478.98 64033101.91 1990361377.07
(2) Changes in major projects under construction in the current year
Decrease in the current year
Name of item Opening balance Increase in the current year Transferred to long-term Closing balance
assets Other decreases
Chongqing Konka Semiconductor
Optoelectronics Park Project 197885487.81 1518206.33 198416543.64 637881.48 349269.02
Guangming Project 466051847.89 6504273.24 472556121.13
Jiangxi High-permeability Crystalisation
Kiln 246576748.57 246576748.57
Dongguan Konka New Industrial Park 398018288.30 30083029.02 428101317.32
Construction of Suining Electronic Industrial
Park Workshops 221981375.38 75225831.87 119690949.02 177516258.23
Frestec Smart Home Appliances Park 113146458.03 285925118.68 398077410.38 994166.33
Total 1643660205.98 399256459.14 1616842341.49 637881.48 425436442.15
256Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(Continued)
Estimated Proportionestimated of Engineering Accumulated amount Of which: the Capitalisation
Name of item number the project of interest amount of the rate of the(RMB100 Scheduleaccumulative capitalisation capitalised interests interests in the
Source of fund
million) (%)input (%) in the current year current year (%)
Chongqing Konka Semiconductor
Optoelectronics Park Project 7.57 95.00 95.00 32272.52 32272.52 Self-owned fund and bank loans
Guangming Project 5.20 100.00 100.00 24439935.22 2111837.71 1.43 Self-owned fund and project loans
Jiangxi High-permeability Crystalisation
Kiln 3.40 72.52 72.52 32249994.16 Bank loans
Dongguan Konka New Industrial Park 5.97 71.69 71.69 23936481.59 8669809.56 4.59Bank loans
Construction of Suining Electronic Industrial
Park Workshops 7.34 95.00 95.00 Self-owned fund
Frestec Smart Home Appliances Park 4.88 100.00 100.00 14134622.62 7347326.08 3.73 Self-owned funds internal entrustedloans bank loans
Total 94793306.11 18161245.87
(3) Provision set aside for impairment of construction in progress in the current year
Category Opening balance Increase in the current year Decrease in the currentyear Closing balance Reason for withdrawal
Jiangxi High-permeability Failure to achieve
Crystalisation Kiln 20068730.37 26686418.20 46755148.57 serviceable conditions
257Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Category Opening balance Increase in the current year Decrease in the currentyear Closing balance Reason for withdrawal
Jiangxi High Transparent Failure to achieve
Nano Line 1 Project 36181822.63 36181822.63 serviceable conditions
Henan Civil Construction
Project 3703547.42 3703547.42
Failure to achieve
serviceable conditions
Construction in progress
Konka Huanjia
environmental equipment 3103138.94 3103138.94
is equipment not
included in fixed assets
which has been sold.Other projects 975862.55 14735793.62 328053.25 15383602.92 Failure to achieveserviceable conditions
Total 64033101.91 41422211.82 3431192.19 102024121.54 -
(4) Impairment test of construction in progress
During the Reporting Period the Company conducted an impairment test on the construction in progress of Jiangxi Konka New Material Technology Co. Ltd.determined its recoverable amounts based on the present value of the net fair value less disposal costs and recognised an impairment loss on assets of
RMB40655031.97.Determination of fair
Item Carrying value Recoverable amount Impairment amount value and disposal Key parameters Basis for determining key parameters
costs
Production Economic depreciation rate = (1 - (capacity of
Line Recoverable amount = equipment expected to be utilized / original
Renovation 85213453.73 73343355.55 11870098.18 replacement costs x (1 - Economic design capacity of equipment) ^ economy of
Project of economic depreciation depreciation rate scale index) x 100%. Economy of scale index
Jiangxi Konka rate) - disposal costs i.e. empirical data takes the value of 0.7 forthe processing industry in general.
258Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Determination of fair
Item Carrying value Recoverable amount Impairment amount value and disposal Key parameters Basis for determining key parameters
costs
Economic depreciation rate = (1 - (capacity of
Jiangxi High- Recoverable amount = equipment expected to be utilized / original
permeability
Crystalisation 226508018.20 199821600.00 26686418.20
replacement costs x (1 - Economic design capacity of equipment) ^ economy of
economic depreciation depreciation rate scale index) x 100%. Economy of scale index
Kiln rate) - disposal costs i.e. empirical data takes the value of 0.7 for
the processing industry in general.Economic depreciation rate = (1 - (capacity of
Other projects Recoverable amount = equipment expected to be utilized / original
of Xinfeng and 39785413.78 37686898.19 2098515.59 replacement costs x (1 - Economic design capacity of equipment) ^ economy ofJiangxi High- economic depreciation depreciation rate scale index) x 100%. Economy of scale index
permeability rate) - disposal costs i.e. empirical data takes the value of 0.7 for
the processing industry in general.
1. The market quotation is determined by the
net price of disposal of waste materials
Fair value = market (dismantling and transportation costs are all
Others 944171.00 176991.15 767179.85 quotation x quantity of
Market quotation borne by the recovery unit); 2. The quantity of
equipment - disposal quantity ofequipment the equipment is determined by an on-sitecosts inventory; 3. Intermediary service fees include
mainly appraisal fees and intermediary fees
for trading platforms.Total 352451056.71 311028844.89 41422211.82 - - -
259Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
19. Right-of-use assets
(1) Right-of-use assets
Item Properties and buildings Electronic Transportequipment equipment Total
I. Original carrying
value
1. Opening balance 105879545.84 243493.34 106123039.18
2. Increase in the
current year 200687422.05 35857.18 200723279.23
(1) Rent 200618894.31 35857.18 200654751.49
(2) Others 68527.74 68527.74
3. Decrease in the
current year 28467652.05 28467652.05
(1) Decrease for
loss of controlling
right
(2) Others 28467652.05 28467652.05
4. Closing balance 278099315.84 279350.52 278378666.36
II. Accumulated
depreciation
1. Opening balance 56047009.73 56190.77 56103200.50
2. Increase in the
current year 42829336.65 58663.68 42888000.33
(1) Provision 42810227.72 58663.68 42868891.40
(2) Others 19108.93 19108.93
3. Decrease in the
current year 17666957.64 17666957.64
(1) Decrease for
loss of controlling
right
(2) Others 17666957.64 17666957.64
4. Closing balance 81209388.74 114854.45 81324243.19
III. Provision for
impairment
1. Opening balance
260Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Properties and buildings Electronic Transportequipment equipment Total
2. Increase in the
current year
(1) Provision
3. Decrease in the
current year
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying
value 196889927.10 164496.07 197054423.17
2. Opening
carrying value 49832536.11 187302.57 50019838.68
Note: Other decreases in original value and accumulated depreciation are mainly due to lease
expiration.
261Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
20. Intangible assets
(1) List of intangible assets
Intellectual property
Item Land use right Total
Trademark right Patent and know-
Right to use
how Franchise rights software and Subtotalothers
I. Original carrying
value
1. Opening balance 920331792.11 72197456.33 116715865.54 168553796.14 166134944.42 523602062.43 1443933854.54
2. Increased amount
of the period 122691321.95 18779386.33 13146791.68 31926178.01 154617499.96
(1) Purchase 122503853.21 7057234.54 7057234.54 129561087.75
(2) Transfer-in of
construction in 8245.09 18779386.33 6089557.14 24868943.47 24877188.56
progress
(3) Other reasons 179223.65 179223.65
3. Decreased amount
of the period 156667052.15 18240.10 1633088.47 1651328.57 158318380.72
(1) Disposal 25524869.53 18240.10 1501672.54 1519912.64 27044782.17
262Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(2) Decrease for loss
of controlling right 17493200.24 17493200.24
(3) Decrease for other
reasons 113648982.38 131415.93 131415.93 113780398.31
4. Ending balance 886356061.91 72197456.33 116697625.44 187333182.47 177648647.63 553876911.87 1440232973.78
II. Accumulated
amortisation
1. Opening balance 99146643.20 19252110.49 71318420.60 1560683.29 90172768.07 182303982.45 281450625.65
2. Increased amount
of the period 18108965.88 4163515.95 399471.81 10160632.33 14842731.26 29566351.35 47675317.23
(1) Provision 18108965.88 4163515.95 399471.81 10160632.33 14842731.26 29566351.35 47675317.23
(2) Other increases
3. Decreased amount
of the period 20531435.34 18240.10 1472830.62 1491070.72 22022506.06
(1) Disposal 4582759.52 1441881.38 1441881.38 6024640.90
(2) Decrease for loss
of controlling right 553951.33 553951.33
(3) Decrease for other
reasons 15394724.49 18240.10 30949.24 49189.34 15443913.83
263Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
4. Ending balance 96724173.74 23415626.44 71699652.31 11721315.62 103542668.71 210379263.08 307103436.82
III. Provision for
impairment
1. Opening balance 564705.88 44943521.62 235294.12 45743521.62 45743521.62
2. Increased amount
of the period
(1) Provision
(2) Increase in
business
combinations
3. Decreased amount
of the period
(1) Disposal
(2) Decrease for loss
of controlling right
4. Ending balance 564705.88 44943521.62 235294.12 45743521.62 45743521.62
IV. Carrying value
1. Ending carrying
value 789631888.17 48217124.01 54451.51 175611866.85 73870684.80 297754127.17 1087386015.34
264Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2. Opening carrying
value 821185148.91 52380639.96 453923.32 166993112.85 75726882.23 295554558.36 1116739707.27
Note: There was no impairment of the Group's intangible assets during the Reporting Period.
265Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(2) Land use right with certificate of title uncompleted
The Group did not have land use rights for which no title deeds had been issued.
(3) Significant intangible assets
Item Closing carrying value Remaining amortisation period(year)
Land use right of Dongguan Konka 185832462.67 45.67
Concessions of Yibin Konka 175611866.85 16.83
Land use right of Frestec Smart Home
Technology 90267954.17 46.75
Land usage right of Frestec Refrigeration 63840404.52 32.75
Total 515552688.21
(4) Intangible assets with restricted ownership or using right
Item Closing carrying value Reasons for the restriction
Land use right of Dongguan Konka 185832462.67 Mortgage loan
Land use right of Shanxi Konka Intelligent 121439312.85 Mortgage loan
Land use right of Frestec Smart Home
Technology 90267954.17 Mortgage loan
Land usage right of Frestec Refrigeration 63840404.52 As collateral for finance lease
Land use right of Anhui Konka 53873716.00 Mortgage loan
Land use right of Chongqing Konka 44585522.54 Mortgage loan
Land use right of Anhui Tongchuang 17455478.16 Mortgage loan
Land use right of Jiangsu Konka 13746913.56 Mortgage loan
Land use right of XingDa HongYe 13112683.07 Mortgage loan
Land use right of Jiangxi Konka 12096157.01 Original shareholder guaranteemortgage
Land use right of Konka Guangming 4343453.05 Mortgage loan
Total 620594057.60
266Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
21. Goodwill
(1) Original carrying value of goodwill
Increase in the current Decrease in the
year current year
Investee Openingbalance Closing balanceFormed through
business Others Disposal Others
combinations
Jiangxi Konka 340111933.01 340111933.01
XingDa
HongYe 44156682.25 44156682.25
Total 384268615.26 384268615.26
(2) Provision for goodwill impairment
Increase in the current Decrease in the
year current year
Investee Opening balance Closing balance
Provision Others Disposal Others
Jiangxi Konka 340111933.01 340111933.01
XingDa
HongYe 21959947.14 21959947.14
Total 362071880.15 362071880.15
(3) Information on the asset group or the combination of asset groups of the goodwill
Composition and basis of the
Name asset group or combination of Whether it is consistent with the
asset groups previous year
It is a group of assets related to
goodwill consisting of all operating
tangible assets and recognizable
intangible assets of the
corresponding subsidiary's main
business as reflected in its balance
Asset group of XingDa HongYe sheet (excluding working capital Yes
and non-operating assets) based on
whether or not the major cash
inflows generated by the asset
group are independent of those
generated by other assets or the
asset group.
(4) Specific determination method for recoverable amount
The Company's management performed an impairment test of goodwill at the end of the year and
recognised XingDa HongYe as a whole as a single asset group which is consistent with prior
years.The Company uses the present value of estimated future cash flows to calculate the recoverable
267Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
amount of an asset group. Future cash flows are determined based on the financial budgets
approved by management for the years 2024 through 2029 and using a discount rate of 12.88%.The cash flows of XingDa HongYe for more than six years are calculated on the basis of a growth
rate of 0%. The Company engaged an appraisal institution Shenzhen Pengxin Asset Appraisal
Land and Real Estate Appraisal Co. Ltd. to conduct an appraisal of the asset group containing
goodwill of XingDa HongYe by adopting the income approach using the present value of the
estimated future cash flows of the assets of the asset group as its recoverable amount. The
appraisal institution issued on 26 February 2024 the P.X.Z.P.B.Z. [2024] No. S033 Asset
Appraisal Report on the Recoverable Amount of the Asset Group Containing Goodwill Formed by
the Merger and Acquisition of GuangDong XingDa HongYe Electronic Co. Ltd. in Relation to
the Goodwill Impairment Test to be Conducted by Konka Group Co. Ltd. which takes 31
December 2023 as the appraisal base date. The present value of the asset group of XingDa
HongYe as at the appraisal date amounted to RMB257920000 and the book value of the asset
group adjusted to its fair value (including the goodwill as a whole) was RMB255359800000 of
which the carrying value of goodwill (inclusive of minority shareholders) amounted to
RMB43523000. Therefore XingDa HongYe had been tested for impairment of goodwill and no
impairment of goodwill existed in the current year. As of the Reporting Date XingDa HongYe
had accumulated goodwill impairment of approximately RMB21959900000.
22.Long-term deferred expenses
Other
Item Opening balance Increase in the Amortisation in decreases incurrent year the current year the current Closing balance
year
Decoration
expenses 263367218.24 176711718.86 68569296.13 1120704.09 370388936.88
Shoppe
expense 18787080.49 20632263.63 13765981.11 678887.63 24974475.38
Others 105155204.34 63771326.63 45041486.17 329233.35 123555811.45
Total 387309503.07 261115309.12 127376763.41 2128825.07 518919223.71
23.Deferred Income Tax Assets/Deferred Income Tax Liabilities
（1） Deferred tax assets that have not been offset
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Deductible
losses 3747584829.70 794363411.92 3446211696.71 710037893.08
Provision for
asset 1879389407.11 407751765.55 1665450141.63 364146193.07
impairment
Deferred
revenue 167691056.33 36766230.50 90355036.00 22296259.01
268Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Accrued
expenses 262522401.07 58732850.29 208346464.01 49058992.22
Unrealised
internal sales 55653196.64 13913299.16 62006060.41 15501515.10
profits
Lease liabilities 207847769.62 50208319.90 37349686.00 6951620.03
Others 279982155.72 64838104.84 134840920.33 29413898.14
Total 6600670816.19 1426573982.16 5644560005.09 1197406370.65
（2） Deferred tax liabilities that have not been offset
Closing balance Opening balance
Item
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Estimated
added value of
assets not under 154693540.82 37285533.12 193084308.55 41509033.61
the same control
Prepaid interest 37541390.08 9385347.52 46965768.40 11741442.10
Accelerated
depreciation of 3005493.04 608518.82 4406228.55 1376446.54
fixed assets
Financial assets
at fair value
through profit 327802549.12 81950637.29 98900582.49 24725145.63
or loss
Right-of-use
assets 195220008.99 48074535.52 30800411.02 5891361.34
Others 47153970.40 7721593.00 42438733.89 10183869.09
Total 765416952.45 185026165.27 416596032.90 95427298.31
（3） Breakdown of unrecognised deferred tax assets
Item Closing balance Opening balance
Deductible losses 3693212186.74 2114844242.75
269Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Deductible temporary differences 4173904666.60 2967427358.07
Total 7867116853.34 5082271600.82
（4） Deductible losses of unrecognised deferred tax assets matured/will mature in the
following year
Year Closing balance Opening balance Notes
2023134203193.22
2024175414641.2892292924.99
2025464500932.68136655028.18
2026224104387.87263654830.43
2027110289035.041488038265.93
2028 and following years 2718903189.87
Total 3693212186.74 2114844242.75 -
24. Other non-current assets
Closing balance
Item
Book balance Provision forimpairment Carrying value
Prepayment for land-purchase 1029317896.04 1029317896.04
Prepayment for construction equipment
and other long-term assets 219010910.12 219010910.12
Total 1248328806.16 1248328806.16
(Continued)
Opening balance
Item
Book balance Provision forimpairment Carrying value
Prepayment for land-purchase 1459111732.63 1459111732.63
Prepayment for construction equipment
and other long-term assets 251133645.63 251133645.63
Total 1710245378.26 1710245378.26
25. Assets with restricted ownership or use rights
Item End of the year
270Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Book balance Carrying value Type ofrestriction Restriction details
Among them
RMB384011696.60 is margin
deposit pledge is used for
Margins borrowing or issuing bankMonetary
assets 831575227.47 831575227.47 pledges time
acceptance
deposits RMB226611500.00 is timedeposit that cannot be
withdrawn in advance;
RMB220952030.87 is
restricted due to other reasons.Accounts
receivable 2527314.22 2474071.67 Pledge Pledge loan
Notes
receivable 209288446.67 209288446.67 Pledge
They are pledged for the
issuance of bank acceptance
Carrying value of inventories
seized as a result of the
minority shareholder case of a
subsidiary was
Inventory 601395411.05 599475045.44 Seizuremortgage RMB49679547.48 and theCompany did not waive claims;
year-end book value of
inventory used for mortgage
loans was RMB549795497.96.Investment
property 634578011.63 585984804.04 Mortgage Mortgage loan
Mortgage for finance lease
Fixed assets 2003558346.93 1689602310.18 Mortgage mortgage loan mortgageguaranteed by the original
shareholder
Mortgage for finance lease
Intangible 687667571.97 620594057.60 Mortgage mortgage loan mortgageassets guaranteed by the original
shareholder
Construction
in progress 40629663.23 40629663.23 Mortgage Mortgage loan
Total 5011219993.17 4579623626.30 - -
(Continued)
Beginning of the year
Item
Book balance Carrying value Type ofrestriction Restriction details
Monetary Margins
Among them
526183479.81 526183479.81 pledges time RMB435167024.52 is marginassets deposits deposit pledge is used for
borrowing or issuing bank
271Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Beginning of the year
Item
Book balance Carrying value Type ofrestriction Restriction details
acceptance RMB305405.41 is
financial supervision account
fund; RMB69800000.00 is
time deposit that cannot be
withdrawn in advance;
RMB20911049.88 is restricted
due to other reasons.Notes
receivable 504958051.41 504958051.41 Pledge
Pledge for making out an
invoice
Affected by the case of the
minority shareholder of the
Inventory 201747758.47 49679547.48 Seizure subsidiary the inventory waswrongly seized and the
company did not give up the
claim.Investment
property 104066818.20 104066818.20 Mortgage Mortgage loan
Mortgage for billing mortgage
Fixed assets 1899311066.39 1437778232.95 Mortgage for finance lease mortgageloan mortgage guaranteed by
the original shareholder
Mortgage loan mortgage for
Intangible 557863536.11 512162337.46 Mortgage finance lease mortgageassets guaranteed by the original
shareholder
Construction
in progress 268783371.35 229757971.08 Mortgage As collateral for finance lease
Total 4062914081.74 3364586438.39 - -
26. Short-term loans
（1） Classification of short-term loans
Type of borrowings Closing balance Opening balance Notes
Unsecured loan 4741431032.21 5252631775.26
Guaranteed loan 1374378896.71 1953423601.39 * * * *
Mortgage loan 274782127.35 373503928.32 * * * *
Total 6390592056.27 7579559304.97
* The Company provides joint and several liability guarantee at the maximum amount for the
short-term borrowings totaling RMB909577438.35 to its subsidiaries Yibin Smart Anhui Konka
Dongguan Konka Jiangxi Konka Jiangxi High-permeability Substrate Xinfeng Microcrystalline
272Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Anhui Tongchuang Boluo Precision Konka Xinyun Electronic Technology.* The Company has obtained short-term borrowings amounting to RMB410486597.23 from
Shenzhen Chegongmiao Sub-branch of China Everbright Bank Co. Ltd. for which the Company's
subsidiary Electronics Technology provides joint and several liability guarantee at the maximum
amount.* The Company's subsidiary Ningbo Khr Electric Appliance Co. Ltd. has obtained short-term
borrowings amounting to RMB50364861.13 from Cixi Branch of Bank of China Limited for
which the Company and Korea Electric Group Co. Ltd. provide joint and several liability
guarantee at the proportion of 3:2 respectively.* The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting to
RMB3950000 from Shenzhen Branch of Bank of Hangzhou Co. Ltd. for which Shenzhen
Qianhai Datang Technology Co. Ltd. provides general guarantee.* The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to
RMB120736113.45 from Chuzhou Branch of Bank of China Limited for which it provides fixed
assets of a carrying value of RMB414886007.46 and land use rights of a carrying value of
RMB35866497.33 as mortgage.* The Company's subsidiary XingDa HongYe has obtained short-term borrowings amounting to
RMB94095305.57 from Fusha Sub-branch of Zhongshan Rural Commercial Bank for which it
provides properties and buildings of a carrying value of RMB30836709.44 and land use rights of
a carrying value of RMB13112683.07 as mortgage and certificates of time deposit with a
carrying value of RMB19800000.00 as pledge and Hu Zehong provides joint and several
liability guarantee.* The Company's subsidiary Jiangsu Konka Smart has obtained short-term borrowings amounting
to RMB30040791.66 from Changzhou Branch of Zheshang Bank Co. Ltd. for which it provides
properties and buildings of a carrying value of RMB35470487.60 and land use rights of a
carrying value of RMB13746913.56 as mortgage.* The Company's subsidiary Anhui Tongchuang has obtained short-term borrowings amounting
to RMB29909916.67 from Hefei Branch of Zheshang Bank Co. Ltd. for which it provides
properties and buildings of a carrying value of RMB140196525.72 and land use rights of a
carrying value of RMB17455478.16 as mortgage.
(2) Outstanding Short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current year.
27. Notes payable
Type of note Closing balance Opening balance
Banker's acceptance 786833882.36 881426104.13
Commercial acceptance draft 203649044.84 173147717.91
Total 990482927.20 1054573822.04
28. Accounts payable
Item Closing balance Opening balance
Within one year 2002263324.19 2330698958.02
273Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
One to two years 448060250.16 155636729.60
Two to three years 107371417.74 89142446.14
Over three years 169136683.88 84468429.17
Total 2726831675.97 2659946562.93
29. Accounts received in advance
Type of note Closing balance Opening balance
Rents 825.69
Total 825.69
30. Contract liabilities
（1） Contract liabilities
Item Closing balance Opening balance
Sales advances received 527975160.12 601044358.35
Total 527975160.12 601044358.35
Note: Contractual liabilities over one year are detailed in "VI.43. Other non-current liabilities" in
this note.
（2） Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the Reporting
Period.
（3） Significant changes in carrying value in the current year
There were no significant changes in carrying value in the current year.
31. Payroll payable
（1） List of payrolls payable
Item Opening balance Increase in the Decrease in thecurrent year current year Closing balance
Short-term
remuneration 343646678.61 1546370655.06 1587111050.24 302906283.43
Post-employment
benefits-defined 4600603.98 119716518.08 123332621.86 984500.20
contribution plans
Dismissal benefits 360921.46 18945372.20 18463973.66 842320.00
Other benefits due
within one year
274Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Opening balance Increase in the Decrease in thecurrent year current year Closing balance
Total 348608204.05 1685032545.34 1728907645.76 304733103.63
（2） Short-term remuneration
Item Opening balance Increase in the Decrease in thecurrent year current year Closing balance
Salaries bonuses
allowances and 334684052.90 1356418260.49 1398283059.07 292819254.32
subsidies
Employee benefits 3936505.74 61452893.58 60035067.05 5354332.27
Social insurance
premiums 1058903.83 55338539.08 55832481.16 564961.75
Including: Medical
insurance premiums 542052.97 49767939.00 49913269.76 396722.21
Work injury
insurance premiums 258547.07 3459232.15 3640666.28 77112.94
Maternity
insurance premiums 258303.79 2111367.93 2278545.12 91126.60
Housing fund 302288.94 60035362.19 59851639.16 486011.97
Labour union funds
and education funds 2815551.22 13052979.72 12186807.82 3681723.12
Short-term absence
with payment
Short-term profit
sharing plan
Others 849375.98 72620.00 921995.98
Total 343646678.61 1546370655.06 1587111050.24 302906283.43
（3） Defined contribution plans
Item Opening balance Increase in the Decrease in thecurrent year current year Closing balance
Basic endowment
management 4410027.51 116179833.58 119754395.92 835465.17
insurance
Unemployment
insurance premiums 190576.47 3536684.50 3578225.94 149035.03
Annuity contribution
275Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Opening balance Increase in the Decrease in thecurrent year current year Closing balance
Total 4600603.98 119716518.08 123332621.86 984500.20
32. Taxes payable
Item Closing balance Opening balance
Corporate income tax 91733192.66 178994811.66
Value-added tax 66607505.30 60178835.36
Fund for disposing abandoned appliances
and electronic products 21210465.50 14716729.00
Land use tax 11704493.10 11028106.31
Stamp duty 6782263.86 9955063.53
Property tax 5219025.56 4511721.21
City construction and maintenance tax 3479642.26 3710919.05
Education fees and local education
Surcharge 2525463.27 2735721.75
Personal income tax 2285063.65 2477590.24
Tariff 1513377.11 1624434.41
Others 1356643.60 1168746.84
Total 214417135.87 291102679.36
33. Other payables
Item Closing balance Opening balance
Interest payable 29590464.00
Other payables 1922791905.14 1866120909.34
Total 1922791905.14 1895711373.34
33.1 Interests payable
Item Closing balance Opening balance
Interest on corporate bonds
Interest on long-term borrowings with
interest paid by instalment and principal 29271307.22
paid at maturity
276Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Interest payable on short-term borrowings 319156.78
Total 29590464.00
33.2 Other Payables
（1） Other accounts payable presented based on the fund nature
Nature of fund Closing balance Opening balance
Trading funds 798553216.65 677014483.12
Expenses payable 521810773.58 538693780.45
Related party borrowing 236064633.74 286552967.74
Cash deposit and front 282035338.52 286952679.25
Advance payment 5480880.33 5482995.92
Equity payable 24302796.96 6302796.96
Others 54544265.36 65121205.90
Total 1922791905.14 1866120909.34
（2） Significant other accounts payable with an age of more than one year or overdue
Unit Closing balance Reason for non-repayment orcarry-over
The Third Construction Engineering
Company Ltd. of China Construction 21677760.25 It was not yet due for payment as
Second Engineering Bureau per the contract
Total 21677760.25
34. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one
year 2891407222.55 249391640.39
Long-term payables due within one year 141650.44 139213550.70
Bonds payable due within one year 2370572421.45
Lease liabilities due within one year 52026101.92 20614839.60
Total 5314147396.36 409220030.69
35. Other current liabilities
277Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Accounts payable paid by endorsement
of outstanding notes at the end of the 11524075.93 26744560.49
Reporting Period
Tax to be charged off 23890662.41 21806789.93
Refunds payable 18915977.41 19898433.29
Total 54330715.75 68449783.71
36. Long-term loans
Type of borrowings Closing balance Opening balance Notes
Guaranteed loan 4047706381.39 3116984312.66 * * * * * * * *
Mortgage loan 1207161686.81 849816227.52 * * * *
Entrusted borrowings 2054850296.35 2595372200.43
Unsecured loan 3276240462.52 2536925213.87
Pledge loan 84598475.36 57225088.80
Less: Portion due within one
year 2891407222.55 249391640.39
Total 7779150079.88 8906931402.89
* The Company has obtained long-term borrowings amounting to RMB1484131000.00 from
Shenzhen Branch of China Guangfa Bank Co. Ltd. the term of which is from 24 June 2021 to 20
December 2026 and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB1441235638.84 from
Shenzhen Branch of China Development Bank Co. Ltd. the term of which is from 22 December
2022 to 22 September 2026 and for which the Company's parent company OCT Group provides
joint and several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB900902777.77 from the
Export-Import Bank of China the term of which is from 22 June 2022 to 21 June 2024 and for
which the Company's parent company OCT Group provides joint and several liability guarantee at
the maximum amount.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB100114583.34 from Chuzhou Plaza Sub-branch of China Construction Bank Co. Ltd. the
term of which is from 24 October 2022 to 26 October 2026 and for which the Company provides
joint and several liability guarantee.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB9857131.44 from Chuzhou Branch of Agricultural Bank of China Co. Ltd. the term of
which is from 29 June 2023 to 28 June 2028 and for which the Company provides joint and
several liability guarantee.
278Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
* The Company's subsidiary Anhui Tongchuang has obtained long-term borrowings amounting
to RMB30018000.00 from Chuzhou Branch of China Everbright Bank Co. Ltd. the term of
which is from 26 December 2023 to 25 June 2025 and for which the Company provides joint and
several liability guarantee at the maximum amount.* The Company's subsidiary Konka Xinyun Semiconductor has obtained long-term borrowings
amounting to RMB51375000.00 from Yancheng Branch of Huaxia Bank Co. Ltd. the term of
which is from 10 September 2021 to 21 August 2026 and for which the Company provides joint
and several liability guarantee.* The Company's subsidiary Sichuan Konka has obtained long-term borrowings amounting to
RMB30072250.00 from Yibin Rural Commercial Bank Co. Ltd. the term of which is from 23
May 2023 to 26 April 2026 and for which the Company provides joint and several liability
guarantee.* The Company has obtained long-term borrowings amounting to RMB334321190.06 from
Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co. Ltd. the term of which is from 21
January 2021 to 22 January 2026 and for which it provides land use rights of a carrying value of
RMB4343453.05 and investment properties of a carrying value of RMB585984804.04 and
properties and buildings of a carrying value of RMB63063516.77 as mortgage.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB86.027129.81 from Chuzhou Branch of Industrial Bank Co. Ltd. the term of which is from
16 July 2021 to 15 July 2031 and for which it provides fixed assets of a carrying value of
RMB186407052.14 and land use rights of a carrying value of RMB18007218.67 as mortgage
and for which the Company provides joint and several liability guarantee.* The Company's subsidiary Dongguan Konka has obtained long-term borrowings amounting to
RMB332193383.84 from Dongguan Fenggang Sub-branch of Agricultural Bank of China Co.Ltd. the term of which is from 23 June 2021 to 21 October 2030 and for which it provides land
use rights as intangible assets of a carrying value of RMB185832462.67 as mortgage and the
Company provides joint and several liability guarantee.* The Company's subsidiary Frestec Smart Home has obtained long-term borrowings
amounting to RMB10012222.22 from Xinxiang Jiankang Road Sub-branch of China CITIC
Bank Corporation Limited the term of which is from 27 October 2022 to 4 May 2030 and for
which it provides land use rights of a carrying value of RMB90267954.17 as mortgage and the
Company as well as Meng Honggang the legal person of Chuzhou Hanshang Electric Appliance
Co. Ltd. provide joint and several liability guarantee at the maximum amount at 51% and 49%
respectively. The Company's subsidiary Nantong Kanghai has obtained long-term borrowings amounting to
RMB22973942.90 from Haimen Sub-branch of Bank of Suzhou Co. Ltd. the term of which
from 24 April 2023 to 25 July 2025 and for which it provides land use rights and construction in
progress of a carrying value of RMB243293655.61 as mortgage. The Company's subsidiary Shanxi Konka Intelligent has obtained long-term borrowings
amounting to RMB250275000.00 from Shanxi Free Trade Zone Xi'an International Port Area
Sub-branch of Industrial and Commercial Bank of China Co. Ltd. the term of which is from 28
September 2023 to 3 November 2033 and for which it provides properties and buildings of a
carrying value of RMB321704287.16 and land use rights of a carrying value of
RMB121439312.85 as mortgage. The Company's subsidiary Xi'an Kanghong Technology Industry has obtained long-term
borrowings amounting to RMB66594605.06 from the Business Department of Shanxi Branch of
Bank of Communications Co. Ltd. the term of which is from 15 June 2023 to 31 December 2032
and for which it provides properties and buildings and land use rights of a carrying value of
279Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
RMB306501842.35 as mortgage and the Company provides joint and several liability guarantee
at the maximum amount. The Company's subsidiary Yantai Kangjin has obtained long-term borrowings amounting to
RMB11867561.07 from Yantai Rural Commercial Bank Co. Ltd. the term of which is from 16
January 2023 to 12 February 2026 and for which it provides construction in progress of a carrying
value of RMB40629663.23 as mortgage. The Company's subsidiary Chongqing Konka has obtained long-term borrowings amounting
to RMB92896651.85 from Chongqing Liangjiang Branch of Industrial and Commercial Bank of
China Co. Ltd. the term of which is from 30 December 2022 to 29 December 2037 and for
which it provides properties and buildings of a carrying value of RMB337145406.93 and land
use rights of a carrying value of RMB44585522.54 as mortgage and the Company provides joint
and several liability guarantee at the maximum amount. The Company's parent company OCT Group has extended entrusted loans amounting to
RMB2054850296.35 to the Company through China Merchants Bank Co. Ltd. the term of
which is from 10 January 2022 to 25 May 2025. The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB49506950.32 from Yibin Branch of Industrial and Commercial Bank of China
Co. Ltd. with the accounts receivable arising from the prospective earnings from a franchise
agreement with an appraisal value of RMB595900000 as pledge and the term thereof is from 30
June 2022 to 15 April 2040. The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB35091525.04 from Yibin Branch of Postal Savings Bank of China Co. Ltd.with the accounts receivable arising from the prospective earnings from a franchise agreement
with an appraisal value of RMB595900000 as pledge and the term thereof is from 30 June 2022
to 15 April 2040.
37. Bonds payable
(1) List of Bonds Payable
Item Closing balance Opening balance
Corporate bonds 4797565000.12 4792392044.13
Less: Bonds payable due within one year 2370572421.45
Total 2426992578.67 4792392044.13
(2) Changes in bonds payable
Bond name Total par value Issue date Bondmaturity Issue amount Opening balance
21Konka01
(note a)) 1000000000.00
8 January Three
2021 years 996500000.00 1042632148.95
21Konka02 Three
(note b)) 500000000.00 21 May 2021 years 498250000.00 511544025.20
21Konka03 Three
(note c)) 800000000.00 9 July 2021 years 797200000.00 813864800.79
22Konka01 Three
(note d)) 1200000000.00 14 July 2022 years 1195800000.00 1216078113.18
280Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Bond name Total par value Issue date Bondmaturity Issue amount Opening balance
22Konka03 600000000.00 8 September Three(note e)) 2022 years 597900000.00 604838993.73
22Konka05 18 October Three
(note f)) 600000000.00 2022 years 597900000.00 603433962.28
Total 4700000000.00 4683550000.00 4792392044.13
(Continued)
Bond name Issuance in the current Accrue interest by Amortisation ofyear par value premium/discount
21Konka01 (note a)) 44600000.00 1100628.93
21Konka02 (note b)) 20000000.00 550314.47
21Konka03 (note c)) 31600000.00 880503.14
22Konka01 (note d)) 38760000.00 1320754.73
22Konka03 (note e)) 19800000.00 660377.36
22Konka05 (note f)) 21000000.00 660377.36
Total 175760000.00 5172955.99
(Continued)
Bond name Prepayment in the current year Closing balance
21Konka01 (note a)) 44600000.00 1043732777.88
21Konka02 (note b)) 20000000.00 512094339.67
21Konka03 (note c)) 31600000.00 814745303.93
22Konka01 (note d)) 38760000.00 1217398867.91
22Konka03 (note e)) 19800000.00 605499371.09
22Konka05 (note f)) 21000000.00 604094339.64
Total 175760000.00 4797565000.12
Note a: On 8 January 2021 the Company issued RMB1 billion of private placement corporate
bonds with the duration of three years the annual interest rate of 4.46% and the due date of 8
January 2024.Note b: On 21 May 2021 the Company issued RMB500 million of private placement corporate
bonds with the duration of three years the annual interest rate of 4.00% and the due date of 21
May 2024.Note c: On 9 July 2021 the Company issued RMB800 million of private placement corporate
bonds with the duration of three years the annual interest rate of 3.95% and the due date of 9 July
2024.
Note d: On 14 July 2022 the Company issued RMB1.2 billion of public placement corporate
281Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
bonds with the duration of three years the annual interest rate of 3.23% and the due date of 14
July 2025.Note e: On 8 September 2022 the Company issued RMB600 million of private placement
corporate bonds with the duration of three years the annual interest rate of 3.30% and the due date
of 8 September 2025.Note f: On 18 October 2022 the Company issued RMB600 million of private placement corporate
bonds with the duration of three years the annual interest rate of 3.50% and the due date of 18
October 2025.Note 2: OCT Group provided full-amount unconditional and irrevocable joint and several
liabilities guarantee for the due payment of the public and private offering of corporate bonds.
38. Lease liabilities
Item Closing balance Opening balance
Lease liabilities 212244920.84 57201478.76
Less: Lease liabilities due within one year (see
Note VI-34) 52026101.92 20614839.60
Total 160218818.92 36586639.16
39. Long-term payables
Item Closing balance Opening balance
Accrued financing lease outlay 6823209.13 152547691.61
Less: Unrecognised financing expenses 545824.62 5370013.73
Less: Amount due within one year (see Note VI-
34)141650.44139213550.70
Total 6135734.07 7964127.18
40. Long-term payroll payables
Item Closing balance Opening balance
Termination benefits-net liabilities of defined
contribution plans 4718466.37 4894209.73
Total 4718466.37 4894209.73
41. Estimated liabilities
Item Closing balance Opening balance Cause(s)
Pending litigation 206591.51 206591.51
Discard expenses 1644068.13 1875064.89
Product quality assurance 101726574.07 74590486.63 After-sales of householdappliances
282Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance Cause(s)
Performance compensation 200942606.09 82723436.52
Total 304519839.80 159395579.55
283Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
42. Deferred revenue
（1） Category of deferred income
Item Opening balance Increase in the current Decrease in the currentyear year Closing balance Cause(s)
Government grants 334844966.31 142412107.74 52121836.15 425135237.90 Related to assets/income
Total 334844966.31 142412107.74 52121836.15 425135237.90
（2） Government subsidy items
Amount
Subsidies recognised as Amount
Government subsidy items Opening balance increased in the non-operating recognised as Other changes Closing balance Related to
current year income in the other income in assets/income
current year the current year
Headquarters 8K device-side
R&D project of Konka Group 23800000.00 1375077.60 22424922.40 Related to assets
Subsidy for electronic relocation
of Anhui Konka 13085700.00 10000000.00 3085700.00 Related to assets
Plant construction subsidy for
Yibin Konka Industrial Park 105864968.77 2319532.32 103545436.45 Related to assets
Plant decoration subsidy for
Yibin Konka Industrial Park 11513723.80 1439215.44 10074508.36 Related to assets
Equipment subsidy for Konka
Xinyun Semiconductor 10596031.61 899350.08 9696681.53 Related to
(Yancheng) income
284Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount
Subsidies recognised as Amount
Government subsidy items Opening balance increased in the non-operating recognised as Other changes Closing balance Related to
current year income in the other income in assets/income
current year the current year
Returned payments for land by
Chongqing Konka 18327272.79 392727.24 17934545.55 Related to assets
Medical waste centralised
treatment project in Gaoxian 28405837.81 2500000.00 1754887.71 29150950.10 Related to assets
County Yibin City
Other government subsidies
related to assets/income 123251431.53 139912107.74 30855345.76 232308193.51
Related to
assets/income
Total 334844966.31 142412107.74 49036136.15 -3085700.00 425135237.90
285Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
43. Other non-current liabilities
Item Closing balance Opening balance
Contract liabilities over one year 179996351.33 314233260.08
Total 179996351.33 314233260.08
44.Share capital
Increase/decrease (+/-) in the current year
Item Opening balance New Bonus Closing balance
shares Bonus issueissue from Others Subtotalissued profit
Total shares 2407945408.00 2407945408.00
45.Capital reserves
Item Opening Increase in the Decrease in the Closing balance
balance current year current year
Other capital surplus 365247361.05 188738008.44 27485862.73 526499506.76
Total 365247361.05 188738008.44 27485862.73 526499506.76
Note: Capital surplus for the Reporting Period--other capital surplus increase and decrease due to
the main reasons:
a) The associated enterprise Wuhan Tianyuan Environmental Protection Co. Ltd. issued new
shares and convertible bonds resulting in an increase in other capital surplus of
RMB127671222.93.b) The financing and equity incentives of the associated enterprise Hefei KONSEMI Storage
Technology Co. Ltd. resulted in an increase in other capital surplus of RMB44092024.98.c)The associated enterprise Shenzhen Kangying Semiconductor Technology Co. Ltd. increased
capital and shares resulting in an increase in other capital surplus of RMB16852760.53.d) The associated enterprise Guangdong Kangyuan Semiconductor Co. Ltd. increased capital and
shares resulting in an increase in other capital surplus of RMB122000.00.e) Other capital surplus decreased by RMB17433984.73 as a result of the disposal of an associate
Guangdong Chutian Dragon Smart Card Co. Ltd. and the change in its accounting method.Among them other capital surplus recognized under the former equity method of accounting was
transferred out when the equity interest held by Guangdong Chutian Dragon Smart Card Co. Ltd.was changed from equity method of accounting to financial asset accounting resulting in a
decrease of other capital surplus by RMB13777882.20; and a decrease of other capital surplus by
RMB3656102.53 due to the disposal of equity interest in Guangdong Chutian Dragon Smart
Card Co. Ltd..f) Repurchase of equity interests for equity incentive by the associated enterprise Chongqing
E2info Technology Co. Ltd. resulted in a decrease in other capital surplus of RMB 5977391.99.g) The decrease in capital surplus and special reserve of the associated enterprise Shandong Econ
Technology Co. Ltd. resulted in a decrease in other capital surplus of RMB4074486.01.
286Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
46.Other comprehensive income
Beginning of the year Amount incurred in the current year End of the year
Less: Amount recognised Less: Amount recognised
Item Amount incurred as other comprehensive as other comprehensive Attributable to Attributable to
Balance before income tax income in the previous income in the previous
Less: the parent minority
in the current year period and transferred to period and transferred to
Income tax company after shareholders Balance
profit or loss in the retained earnings in the expense tax after tax
Reporting Period Reporting Period
I. Other comprehensive
income that cannot be
reclassified as profits or -6398878.20 -6398878.20
losses
Changes in the fair value of
other equity instrument -6398878.20 -6398878.20
investments
Others
II. Other comprehensive
income reclassified as -7866303.43 -84979.37 821623.19 -906602.56 -7044680.24
profits and losses
Including: Other
comprehensive income that
can be transferred to profits -4029937.27 -86041.63 -86041.63 -4115978.90
or losses under the equity
method
Exchange difference on
translating foreign -3836366.16 1062.26 907664.82 -906602.56 -2928701.34
operations
Total of other
comprehensive income -14265181.63 -84979.37 821623.19 -906602.56 -13443558.44
287Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
47.Special reserve
Item Opening balance Increase in the Decrease in thecurrent year current year Closing balance
Safety production fund 5509215.43 851727.19 4657488.24
Total 5509215.43 851727.19 4657488.24
48.Surplus reserves
Item Opening balance Increase in the Decrease in thecurrent year current year Closing balance
Statutory surplus
reserves 1005961774.19 1005961774.19
Discretionary
surplus reserves 238218590.05 238218590.05
Total 1244180364.24 1244180364.24
49.Unappropriated profit
Item The current year Last year
Balance as at the end of last year 3637291770.33 5229098788.94
Add: Total beginning balance of retained earnings before
adjustments 1060258.69
Including: Changes in accounting policies 1060258.69
Opening balance of current year 3638352029.02 5229098788.94
Add: Net profit attributable to owners of the parent
company in the current year -2163790053.17 -1471409748.21
Less: Appropriation of statutory surplus reserves
Ordinary share dividends payable 120397270.40
Closing balance of the current year 1474561975.85 3637291770.33
50.Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
business 16951243781.74 16397488134.14 28607497919.19 28075348270.98
Other 898087647.50 751548616.36 1000356336.08 713290122.90
288Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in the current year Amount incurred last year
business
Total 17849331429.24 17149036750.50 29607854255.27 28788638393.88
（2） Information on the breakdown of operating revenue and cost of sales
Category of contracts Operating income Operating expenses
Business type
Of which: Colour TV business 4708450488.99 4756604973.05
Consumer appliances business 4257423386.71 3790414584.40
Memory chip trading and
semiconductor business 3397161542.60 3433148164.76
Environmental protection and new
materials business 1145732124.31 1134022493.39
PCB business 476456155.62 420480569.60
Other business 3864107731.01 3614365965.30
Total 17849331429.24 17149036750.50
Classified by operating region
Of which: Domestic 10716944822.00 10283636801.86
Overseas 7132386607.24 6865399948.64
Total 17849331429.24 17149036750.50
Note: According to the adjustment and optimization of our group's business layout the storage
chip processing trade in the industrial and trade business will be adjusted to the storage chip trade
and semiconductor business and the other parts will be merged into others.
（3） Information in relation to the trade price apportioned to the residual contract
performance obligation
The amount of revenue corresponding to performance obligations that have been contracted but
have not yet been fulfilled or completed at the end of the year is RMB737878491.32 of which
RMB666987130.93 is expected to be recognised as revenue in 2024 and the remaining
RMB70891360.39 is expected to be recognised as revenue in 2025 and following years.
51.Taxes and surcharges
Item Amount incurred in thecurrent year Amount incurred last year
Stamp duty 34773519.65 39436591.84
Land use tax 20537445.82 27096008.05
289Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent year Amount incurred last year
Property tax 31766475.03 25401754.51
City maintenance & construction tax 9421882.52 14998902.21
Educational surcharge 4271078.25 6410329.82
Local educational surcharge 2847868.04 4993164.43
Water resources fund 935650.62 590860.27
Others 934120.54 412208.88
Total 105488040.47 119339820.01
52.Selling expenses
Item Amount incurred in thecurrent year Amount incurred last year
Employee benefits 374259567.43 349085455.73
Advertising expense 233506458.32 362795424.61
Warranty fee 167413447.59 162483458.52
Promotional activities 144332006.20 132984672.13
Logistic Fee 78886050.69 76005945.85
Travel expenses 21297750.22 16412701.43
Lease expense 12330023.91 20000782.87
Entertainment fees 12054482.82 12319781.49
Exhibition expenses 18344007.57 3049900.87
Taxes and fund 634083.90 43602463.99
Others 82066970.31 61404148.28
Total 1145124848.96 1240144735.77
53.Administration expenses
Item Amount incurred in thecurrent year Amount incurred last year
Employee benefits 442241850.70 536410042.48
Depreciation charges 221920806.29 181356034.20
290Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent year Amount incurred last year
Intermediary fees 27526556.25 70364121.16
Travel expenses 11896505.16 11799889.35
Water and electricity expenses 9399817.49 15251139.78
Loss on scraping of inventories 2768674.29 5066889.35
Patent fee 273797.86 369573.26
Others 91499902.16 129029900.70
Total 807527910.20 949647590.28
54.R&D expense
Item Amount incurred in thecurrent year Amount incurred last year
Salary 271425739.22 291536802.63
Depreciation and amortisation charge 109324146.88 76242059.21
New product trial production expense 37107469.57 53488226.67
Material expense 29602114.38 38872892.09
Commission service fee 4452755.80 13376731.07
Testing expense 5899826.42 4302928.77
Information use fee 313299.20 918800.49
Others 39868408.39 65143583.96
Total 497993759.86 543882024.89
55.Finance costs
Item Amount incurred in thecurrent year Amount incurred last year
Interest expense 884535066.01 913721408.10
Less: Interest income 286969209.86 237115652.09
Add: Exchange loss -72904637.81 -198292207.05
Other expenses 37354891.90 44110194.22
Total 562016110.24 522423743.18
56.Other income
291Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Resources Amount incurred in thecurrent year Amount incurred last year
Support funds 147251929.00 695511711.98
Rewards and subsidies 62683717.05 138985910.13
Transfer of deferred income 49036136.15 29108950.31
Software tax refund 5819853.78 12377884.09
Post subsidies 3523345.06 5205565.67
Subsidies for L/C exports 2231210.76 348111.95
Tax rebates and refunds 71840.14 47174366.68
Total 270618031.94 928712500.81
57.Investment income
Item Amount incurred in thecurrent year Amount incurred last year
Returns on long-term equity investments
calculated by the equity method -170413352.22 123392731.97
Return on investment arising from the
disposal of long-term equity investments 195999095.98 509249136.96
Conversion of long-term equity investments
accounted for by the equity method to 574780174.75
financial assets
Investment income arising from the disposal
of other equity instruments investments 560005.44
Income from remeasurement of residual stock
rights at fair value after losing control power 51474909.15 239092139.68
Interest income from debt investments during
the holding period 56292758.87 69651317.87
Return on investment in the financial assets
held for trading during the holding period 9383976.00
Income from the derecognition of financial
assets at amortized cost -3132035.83
Investment income from disposal of financial
assets at fair value through profit or loss -38708152.12 -5378929.04
Others -832158.49
Total 675405221.53 936006397.44
58.Income from changes in the fair value
292Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Sources of income from changes in the fair Amount incurred in the
value current year Amount incurred last year
Financial assets at fair value through profit or
loss -16629916.60 4560753.18
Estimated performance compensation -81307994.29 -45292086.72
Total -97937910.89 -40731333.54
59.Credit impairment loss
Item Amount incurred in thecurrent year Amount incurred last year
Bad debt loss of notes receivable 6971440.21 4405405.84
Bad debt loss of accounts receivable -209233746.63 -437154564.05
Bad debt loss of other accounts receivable -254340694.42 -517135861.32
Total -456603000.84 -949885019.53
60.Impairment losses on assets
Item Amount incurred in thecurrent year Amount incurred last year
Inventory depreciation loss and contract
performance cost impairment loss -371733599.86 -156563428.63
Impairment loss of long-term equity
investments -106783838.90
Impairment loss of construction in progress -41422211.82 -63705515.70
Impairment loss on fixed assets -40607700.40 -71089375.71
Contractual asset impairment loss -45614.41
Impairment loss of intangible assets -4037532.29
Total -560592965.39 -295395852.33
61.Impairment losses on assets ("-" indicates loss)
Amount recorded
Item Amount incurred in Amount incurred into the non-the current year last year recurring profit or
loss of current year
Incomes from disposal of held-for-
sale assets
Incomes from disposal of non-current
assets 54321.20 9580708.29 54321.20
293Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount recorded
Item Amount incurred in Amount incurred into the non-the current year last year recurring profit or
loss of current year
Including: incomes from disposal of
non-current assets not classified as 54321.20 9580708.29
held-for-sale assets
Including: Fixed assets disposal
income -8803043.13 -2675226.73 -8803043.13
Intangible assets disposal income 8559461.64 12241030.45 8559461.64
Income from disposal of
construction in progress -321592.91 -321592.91
Right-of-use assets disposal
income 619495.60 14904.57 619495.60
Income from non-monetary assets
exchange
Income from disposal of non-current
assets in debt restructuring
Total 54321.20 9580708.29 54321.20
62.Non-operating income
（1） List of Non-operating Income
Amount recorded
Item Amount incurred in Amount incurred into the non-the current year last year recurring profit or
loss of current year
Write-off of current accounts 12652519.62 25490345.11 12652519.62
Compensation and penalty income 6981587.26 21714054.35 6981587.26
Non-current assets damage and
retirement gains 15390.13 917512.09 15390.13
Income from performance
compensation 72653782.00
Others 6613575.48 4363348.45 6613575.48
Total 26263072.49 125139042.00 26263072.49
（2） Government subsidies recorded in profit or loss of the current year
The Company had no government subsidies recorded in profit or loss in the current year
63. Non-operating expenses
294Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount recorded
Item Amount of current Amount of last into the non-year year recurring profit or
loss of current year
Performance compensation 74344977.85 37431349.80 74344977.85
Losses on damage and scraping of
non-current assets 4072756.52 3340817.47 4072756.52
Compensation expense 3945526.50 3369768.80 3945526.50
Unusual loss on inventory 148669068.79
Others 74322594.16 31913240.98 74322594.16
Total 156685855.03 224724245.84 156685855.03
64.Income tax expense
（1） Income tax expense
Item Amount incurred in the currentyear Amount incurred last year
Income tax expense in the current
year 58328317.21 155149364.07
Deferred income tax expense -139776731.85 -453448871.15
Total -81448414.64 -298299507.08
（2） Adjustment process of accounting profits and income tax expenses
Item Amount incurred in the current year
Total consolidated profit in the current year -2717335075.98
Income tax expense calculated at legal/applicable tax rate -679333769.00
Impact of different tax rates applied by subsidiaries 106438303.57
Impact of income tax in the periods before adjustment -879334.46
Impact of non-taxable income 27215138.64
Impacts of non-deductible costs expenses and losses 8887343.81
Impact of using deductible losses on the deferred tax assets not
recognised previously 126332523.09
Impact of deductible temporary differences or deductible
losses of deferred tax assets not recognised in the current year 377683927.23
Changes in the balance of deferred income tax assets/
liabilities in previous period due to adjustment of tax rate -73940.46
295Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in the current year
Others -47718607.06
Income tax expense -81448414.64
65.Other comprehensive income
For details please refer to "Note VI-46 Other comprehensive income".
66.Items in the cash flow statement
（1） Cash related to operating activities
1） Other cash received related to operating activities
Item Amount incurred in thecurrent year Amount incurred last year
Income from government subsidies 362725223.50 1022967081.76
Front money and guarantee deposit 392830280.36 259156351.64
Trading funds 159741742.98 38841937.19
Interest income from bank deposits 116327870.24 81268409.97
Compensation and penalty income 20504317.63 13515680.81
Others 39760244.28 181337565.76
Total 1091889678.99 1597087027.13
2） Other cash paid related to operating activities
Item Amount incurred in thecurrent year Amount incurred last year
Cash payment fee 898328046.30 1284221978.23
Deposit and margin 230032945.74 428549076.52
Payment made on behalf 6916151.52 26621620.91
Expense for bank handling charges 4874263.89 4742304.06
Others 165832467.23 225268008.86
Total 1305983874.68 1969402988.58
（2） Cash related to investment activities
1） Significant cash received related to investment activities
Item Amount incurred in thecurrent year Amount incurred last year
296Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent year Amount incurred last year
Recovery of loan at call 473934626.67 3860647680.07
Total 473934626.67 3860647680.07
2） Significant cash paid related to investment activities
Item Amount incurred in the Amount incurred last year
current year
Payment of loan at call 310116949.03 479034898.06
Total 310116949.03 479034898.06
3） Other cash received related to investment activities
Item Amount incurred in the Amount incurred last year
current year
Recovery of loan at call 473934626.67 3860647680.07
Cash received from acquisition of
subsidiaries 2000.00
Others 209995119.36 127885628.35
Total 683929746.03 3988535308.42
4） Other cash paid related to investment activities
Item Amount incurred in the Amount incurred last year
current year
Payment of loan at call 310116949.03 479034898.06
Cash paid for disposal of subsidiaries 840192.20
Others 218616095.75 2979556.70
Total 529573236.98 482014454.76
（3） Cash related to financing activities
1） Other proceeds received related to financing activities
Item Amount incurred in the Amount incurred last year
current year
Recovery of margin deposit pledged 570834983.98 363847783.60
Receiving loan at call 167370200.00 161410093.19
Others 28100.03
297Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in the Amount incurred last year
current year
Total 738205183.98 525285976.82
2） Other cash paid related to financing activities
Item Amount incurred in the Amount incurred last year
current year
Deposit as margin for pledge 773184328.31 378218165.91
Cash paid for leases 145535542.98 299950091.11
Retuning loan at call 79183194.53 142068831.60
Financing cost 32222659.12 37111326.66
Others 6192899.46 1816055.32
Total 1036318624.40 859164470.60
298Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
3） Changes in liabilities arising from financing activities
Increase in the current year Decrease in the current year
Item Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities due
within one year 409220030.69 5312118620.81 384295482.65 22895772.49 5314147396.36
Short-term loans 7579559304.97 7068722590.74 246534117.28 8490272406.79 13951549.93 6390592056.27
Long-term loans 8906931402.89 3881307916.00 421767241.00 2539449257.46 2891407222.55 7779150079.88
Bonds payable 4792392044.13 180932955.99 175760000.00 2370572421.45 2426992578.67
Lease liabilities 36586639.16 206391170.31 7495510.95 75263479.60 160218818.92
Long-term payables 7964127.18 377045.54 1326996.00 878442.65 6135734.07
Total 21732653549.02 10950030506.74 6368121150.93 11598599653.85 5374968888.67 22077236664.17
299Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（4） Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current year.
（5） Significant activities and financial effects that do not involve current cash receipts
and payments but affect the financial position of the enterprise or may affect the
enterprise's cash flows in the future
Item Amount incurred in the current year
Payment for materials made by endorsement of notes
receivable 1823500934.62
Acquisition of long-term assets by endorsement of notes
receivable 95233307.89
Other payments made by endorsement of notes receivable 158839883.66
67.Supplementary data on the statements of cash flows
（1） Supplementary data on the statements of cash flows
Item Amount of currentyear Amount of last year
1. Reconciliation of net profit to cash flows from
operating activities: — -
Net profit -2635886661.34 -1769220348.36
Add: Provision for asset impairment 560592965.39 295395852.33
Credit impairment loss 456603000.84 949885019.53
Depreciation of fixed assets depletion of oil and gas
assets and depreciation of productive biological assets 450848329.23 396581885.62
Depreciation of right-of-use assets 42868891.40 46766548.09
Amortisation of intangible assets 47675317.23 49235482.54
Amortisation of long-term prepaid expense 127376763.41 113357073.06
Losses on disposal of fixed assets intangible assets
and other long-lived assets (" " indicates income) -54321.20 -9580708.29
Losses on scrap of fixed assets (" " indicates income) 65989435.90 2423305.38
Losses on changes in fair value (" " indicates income) 97937910.89 40731333.54
Finance costs (" " indicates income) 723081917.40 796256399.85
Investment loss (" " indicates income) -675405221.53 -936006397.44
Decrease in deferred income tax assets (" " indicates
increase) -229384248.41 -464095009.37
300Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount of currentyear Amount of last year
Increase in deferred income tax liabilities (" " indicates
decrease) 89598866.96 10634827.21
Decrease in inventories (" " indicates increase) 772941542.37 -509708316.12
Decrease in accounts receivable generated from
operating activities (" " indicates increase) 879334900.88 1536953154.05
Increase in accounts payable used in operating activities
(" " indicates decrease) -171981975.37 -1048804193.14
Others -49036136.15 -29108950.31
Net cash flows from operating activities 553101277.90 -528303041.83
2. Significant investment and financing activities not
involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Balance of cash at the end of the year 5674784349.55 5461912010.90
Less: Opening balance of cash 5461912010.90 5968347219.03
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 212872338.65 -506435208.13
（2） Net cash paid for the acquisition of subsidiaries in the current year
Net cash was paid for the acquisition of subsidiaries in the current year.
（3） Net cash received for the disposal of subsidiaries in the current year
Item Amount
Cash or cash equivalents received in the current year from the disposal
of subsidiaries in the current year 196815840.00
Including: Guizhou Kanggui Energy Co. Ltd. 9500000.00
Kanghong (Yantai) Environmental Protection Technology Co. Ltd. 1091900.00
Chongqing Kangxingrui Environmental Protection Technology Co.Ltd. 40308400.00
301Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount
Sichuan Hongxinchen Real Estate Development Co. Ltd. 20855540.00
Yibin Kangrun Environmental Protection Power Generation Co.Ltd. 52460000.00
Zhongshan Kanghong Electronic Technology Co. Ltd. 72600000.00
Less: Cash and cash equivalents held by subsidiaries on the day when
control is lost 31692957.22
Including: Guizhou Kanggui Energy Co. Ltd.Kanghong (Yantai) Environmental Protection Technology Co. Ltd. 1932092.20
Chongqing Kangxingrui Environmental Protection Technology Co.Ltd. 26937835.64
Sichuan Hongxinchen Real Estate Development Co. Ltd. 2036650.33
Yibin Kangrun Environmental Protection Power Generation Co.Ltd. 786379.05
Zhongshan Kanghong Electronic Technology Co. Ltd.Add: Cash or cash equivalents received in the current year from the
disposal of subsidiaries in previous periods
Including:
Net cash received from the disposal of subsidiaries 165122882.78
（4） Composition of cash and cash equivalents
Item Closing balance Opening balance
Cash 5674784349.55 5461912010.90
Including: Cash on hand 469.28 14.78
Bank deposits available for payment at any time 5672034875.67 5459401175.52
Other monetary funds available for payment at any
time 2749004.60 2510820.60
Balance of cash and cash equivalents at the end of the
year 5674784349.55 5461912010.90
（5） Presentation of cash and cash equivalents with restricted use
Item Amount of Amount of last Reasons for classifying the funds as cashcurrent year year and cash equivalents
302Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount of Amount of last Reasons for classifying the funds as cashcurrent year year and cash equivalents
The proceeds can be used at any time to
Project loan proceeds 2554356.19 make payments and such payments can
only be made for projects
The proceeds can be used at any time to
Project pre-sale funds 40951191.37 make payments and such payments can
only be made for projects
Total 43505547.56 -
（6）Monetary funds not classified as cash and cash equivalents
Reasons for not
Item Amount of current classifying the funds asyear Amount of last year cash and cash
equivalents
It is pledged for
Cash deposit 384011696.60 435167024.52 borrowing or deposit forissuance of banker
acceptance
The management
Time deposits 226611500.00 69800000.00 intends to hold the
deposits to maturity
Frozen funds 220952030.87 21216455.29 Not readily available forpayment
Total 831575227.47 526183479.81 -
68.Items in the Statement of Changes in Shareholders' Equity
No "other" amount in the closing amount of last year was adjusted in the current year.
69.Foreign currency monetary items
（1） Foreign currency monetary items
Item Year-end foreign currencybalance Exchange rate
Year-end balance
denominated in RMB
Monetary assets
Including: USD 91184116.43 7.08270 645829741.44
EUR 354034.80 7.85920 2782430.30
EGP 60588354.86 0.22903 13876550.91
GBP 1.32 9.04110 11.93
HKD 9020139.65 0.90622 8174230.95
CAD 6.96 5.36730 37.36
303Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Year-end foreign currency Year-end balancebalance Exchange rate denominated in RMB
PLN 6235024.89 1.81068 11289634.87
Accounts receivable
Including: USD 85032871.75 7.08270 602262320.74
EUR 92742.00 7.85920 728877.93
EGP 64711.11 0.22903 14820.79
HKD 54244812.62 0.90622 49157734.09
AUD 49764.00 4.84840 241275.78
Other accounts receivable
Including: USD 110836591.33 7.08270 785022325.41
EGP 108000.00 0.22903 24735.24
HKD 814032.70 0.90622 737692.71
JPY 21400000.00 0.05021 1074558.20
Accounts payable
Including: USD 4828295.25 7.08270 34197366.77
EUR 12698.28 7.85920 99798.32
EGP 44517982.34 0.22903 10195953.50
HKD 68208818.14 0.90622 61812195.17
Other payables
Including: USD 3453133.32 7.08270 24457507.37
EUR 150799.56 7.85920 1185163.90
EGP 911520.00 0.22903 208765.43
HKD 5056341.30 0.90622 4582157.61
（2） Overseas entities
The significant overseas entities include Hongdin Trading Hong Kong Konka Chain Kingdom
Memory Technologies Kangjietong Jiali International and Kowin Memory (Hong Kong). 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.
304Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
VII. R&D expenditures
Item Amount incurred in the currentyear Amount incurred last year
Salary 271425739.22 291536802.63
Depreciation and amortisation
charge 109324146.88 76242059.21
New product trial production
expense 37107469.57 53488226.67
Material expense 29602114.38 38872892.09
Commission service fee 4452755.80 13376731.07
Testing expense 5899826.42 4302928.77
Information use fee 313299.20 918800.49
Others 39868408.39 65143583.96
Total 497993759.86 543882024.89
Including: Expensed R&D
expenditure 497993759.86 543882024.89
Capitalised R&D expenditure
VIII . Changes in the Scope of Consolidation
1. Combinations of businesses not under common control
The Company had no combinations of businesses not under common control in the Reporting
Period.
2. Combinations of businesses under common control
The Company had no combinations of businesses under common control in the Reporting Period.
305Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
3. Disposal of subsidiaries
Unit: RMB10000
Difference Recognition
between the method and
disposal price Carrying Fair value major Amount of
and the value of of assumptions other
attributable Remaining remaining remaining Gains or of fair value comprehensiveProportion Disposal
Disposal price of disposals method at Control Basis for
share of net equity equity at the equity at the of income related
determining assets of the percentage level of the level of the
losses from remaining to the equity
Subsidiary at control at control control right control subsidiary at on the day consolidated consolidated
re- equity at the investments of
right losing right losing right losing time right losing the level of when the financial financial
measurement
of remaining level of the formertime point time point losing time point consolidated control statements statements
(%) point time point financial right is on the day on the day equity at fair
consolidated subsidiaries
financial transferred
statements lost (%) when the when the value statements into
corresponding control control on the day investment
to the right is lost right is lost when the profit or loss
investment control
disposal right is lost
The rights
and
obligations
19 related to
Zhongshan Kanghong 7260.00 100.00 Transfer December the 4.80 Evaluated
2023 underlying price
equity have
been
transferred
The rights
and
obligations
Guizhou Kanggui 25 related to950.00 100.00 Transfer December the 97.49 EvaluatedEnergy 2023 underlying price
equity have
been
transferred
306Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Difference Recognition
between the method and
disposal price Carrying Fair value major Amount of
and the value of of assumptions other
attributable Remaining remaining remaining Gains or of fair value comprehensiveProportion Disposal share of net equity equity at the equity at the of income related
Disposal price of disposals method at Control Basis fordetermining assets of the percentage level of the level of the
losses from remaining to the equity
Subsidiary at control at control control right control subsidiary at on the day consolidated consolidated
re-
right losing right losing right losing time the level of when the financial financial measurement
equity at the investments of
right losing of remaining level of the formertime point time point losing time point time point consolidated control statements statements equity at fair consolidated subsidiaries(%) point financial right is on the day on the day financial transferred
statements lost (%) when the when the value statements into
corresponding control control on the day investment
to the right is lost right is lost when the profit or loss
investment control
disposal right is lost
The rights
and
obligations
Kanghong (Yantai) 28 related to
Environmental 109.19 51.00 Transfer December the 6.50 Evaluated
Protection 2023 underlying price
equity have
been
transferred
The rights
and
obligations
Chongqing 5 related to
Kangxingrui 4030.84 51.00 Transfer December the 38.84
Evaluated
2023 underlying price
equity have
been
transferred
307Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Difference Recognition
between the method and
disposal price Carrying Fair value major Amount of
and the value of of assumptions other
attributable Remaining remaining remaining Gains or of fair value comprehensiveProportion Disposal Basis for share of net equity equity at the equity at the of income relatedDisposal price of disposals method at Control determining assets of the percentage level of the level of the
losses from remaining to the equity
Subsidiary at control at control control right control subsidiary at on the day consolidated consolidated
re- equity at the investments of
right losing right losing right losing time measurement
time point time point losing time point right losing
the level of when the financial financial of remaining level of the formerconsolidated control statements statements consolidated subsidiaries
(%) point time point financial right is on the day on the day equity at fairvalue financial transferredstatements lost (%) when the when the statements into
corresponding control control on the day investment
to the right is lost right is lost when the profit or loss
investment control
disposal right is lost
The rights
and
obligations
Yibin Kangrun 27 related to
Environmental 5246.00 40.87 Transfer November the 610.00 Evaluated
Protection 2023 underlying price
equity have
been
transferred
The rights
and
obligations
Sichuan Hongxinchen 27 related to
Real Estate 3472.00 31.00 Transfer February the 3256.58 49.00 340.51 5488.00 5147.49 Evaluated
Development Co. Ltd. 2023 underlying price
equity have
been
transferred
308Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
4. Changes in the scope of consolidation due to other reasons
(1) Subsidiaries established in the current year
No subsidiaries were established in the current year.
(2) Subsidiaries cancelled in the current year
Subsidiary Registered capital Shareholding Liquidation completion(RMB'0000) percentage (%) time
Anhui Zhilian 5000.00 100.00 1 June 2023
Jiangsu Konka Special
Material 10000.00 51.00 8 October 2023
309Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
IX . Interests in other entities
1. Interests in subsidiaries
（1） Composition of the business group
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
1 Konka Ventures Guangdong Guangdong Enterprise management consulting incubation EstablishmentShenzhen Shenzhen management housing leasing etc. 51 or investment
2 Yantai Konka Shandong Yantai Shandong Yantai Other professional consultation andinvestigation 51
Establishment
or investment
3 Chengdu Anren Sichuan Chengdu Sichuan Chengdu Enterprise incubation management 51 Establishmentor investment
4 Konka Enterprise Service Guizhou Guiyang Guizhou Guiyang Enterprise management consulting 51 Establishmentor investment
5 Yibin Konka Incubator Sichuan Yibin Sichuan Yibin Commercial services 51 Establishmentor investment
6 Anhui Konka Anhui Chuzhou Anhui Chuzhou Manufacturing 78 Establishmentor investment
7 Kangzhi Trade Anhui Chuzhou Anhui Chuzhou Wholesale 78 Establishmentor investment
8 Konka Electronic Materials Guangdong Guangdong Other science and technology promotion EstablishmentShenzhen Shenzhen services 100 or investment
9 Konka Unifortune Guangdong Guangdong Trade and services 51 EstablishmentShenzhen Shenzhen or investment
10 Jiali International China Hong Kong China Hong Kong Trade and services 51 Establishmentor investment
11 Wankaida Guangdong GuangdongShenzhen Shenzhen Software development 100
Establishment
or investment
310Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of (%) Acquisitionbusiness Place of registration Business nature method
Direct Indirect
12 Dongguan Konka Guangdong Guangdong Manufacturing 75 25 EstablishmentDongguan Dongguan or investment
13 Suining Konka Smart Sichuan Suining Sichuan Suining Wholesale 100 Establishmentor investment
14 Konka Europe Germany Frankfurt Germany Frankfurt International trade 100 Establishmentor investment
15 Telecommunication Guangdong GuangdongTechnology Shenzhen Shenzhen Manufacturing 75 25
Establishment
or investment
16 Konka Mobility China Hong Kong China Hong Kong Commerce 100 Establishmentor investment
17 Mobile Interconnection Guangdong Guangdong Commerce 100 EstablishmentShenzhen Shenzhen or investment
18 Sichuan Konka Sichuan Yibin Sichuan Yibin Manufacturing 100 Establishmentor investment
19 Yibin Smart Sichuan Yibin Sichuan Yibin Manufacturing 100 Establishmentor investment
20 Anhui Tongchuang Anhui Chuzhou Anhui Chuzhou Manufacturing 100 Establishmentor investment
21 Anhui Electrical Appliance Anhui Chuzhou Anhui Chuzhou Manufacturing 51 Establishmentor investment
22 Frestec Refrigeration Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
23 Frestec Smart Home Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
24 Frestec Electrical Appliances Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
311Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of (%) Acquisitionbusiness Place of registration Business nature method
Direct Indirect
25 Frestec Household Appliances Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
26 Jiangsu Konka Smart Jiangsu Changzhou Jiangsu Changzhou Manufacturing 51 Establishmentor investment
27 Kangjiatong Sichuan Yibin Sichuan Yibin Trade and services 100 Establishmentor investment
28 Pengrun Technology Guangdong GuangdongShenzhen Shenzhen Trade and services 51
Establishment
or investment
29 Jiaxin Technology China Hong Kong China Hong Kong Trade and services 51 Establishmentor investment
30 Beijing Konka Electronic Beijing Beijing Sale of home appliance 100 Establishmentor investment
31 Tianjin Konka Tianjin Pilot Free Tianjin Pilot Free EstablishmentTrade Zone Trade Zone Service Industry 100 or investment
32 Konka Circuit Guangdong Guangdong Manufacturing 100 EstablishmentShenzhen Shenzhen or investment
33 Boluo Precision Guangdong Boluo Guangdong Boluo Manufacturing 100 Establishmentor investment
34 Boluo Konka Guangdong Boluo Guangdong Boluo Manufacturing 100 Establishmentor investment
35 Hong Kong Konka China Hong Kong China Hong Kong International trade 100 Establishmentor investment
36 Hongdin Invest China Hong Kong China Hong Kong Investment holding 100 Establishmentor investment
37 Chain Kingdom MemoryTechnologies China Hong Kong China Hong Kong International trade 51
Establishment
or investment
312Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
38 Zhongkang Semiconductor Establishment(Shaoxing) Zhejiang Shaoxing Zhejiang Shaoxing Trade and services 51 or investment
39 Hongjet China Hong Kong China Hong Kong Trade and services 51 Establishmentor investment
40 Hongdin Trading China Hong Kong China Hong Kong International trade 100 Establishmentor investment
41 Kanghao Technology Egypt Cairo Egypt Cairo International trade 67 Establishmentor investment
42 Konka North America America California America California International trade 100 Establishmentor investment
43 Konka Investment Guangdong GuangdongShenzhen Shenzhen Capital market services 100
Establishment
or investment
44 Yibin Konka Technology Park Sichuan Yibin Sichuan Yibin Industrial park development and operation Establishmentmanagement 100 or investment
45 Konka Capital Guangdong Guangdong EstablishmentShenzhen Shenzhen Capital market services 100 or investment
46 Konka Suiyong Guangdong Guangdong Commercial services 51 EstablishmentShenzhen Shenzhen or investment
47 Shengxing Industrial Guangdong GuangdongShenzhen Shenzhen Commercial services 51
Establishment
or investment
48 Zhitong Technology Guangdong Guangdong EstablishmentShenzhen Shenzhen Software and information technology services 51 or investment
49 Electronics Technology Guangdong GuangdongShenzhen Shenzhen Manufacturing 100
Establishment
or investment
50 Shenzhen Kangcheng Guangdong GuangdongShenzhen Shenzhen Software and information technology services 100
Establishment
or investment
313Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of (%) Acquisitionbusiness Place of registration Business nature method
Direct Indirect
51 Xiaojia Technology Guangdong GuangdongShenzhen Shenzhen Retail trade 100
Establishment
or investment
52 Haimen Konka Jiangsu Nantong Jiangsu Nantong Trade and services 100 Establishmentor investment
53 Chengdu Konka Smart Sichuan Chengdu Sichuan Chengdu Trade and services 100 Establishmentor investment
54 Chengdu Konka Electronic Sichuan Chengdu Sichuan Chengdu Manufacturing 100 Establishmentor investment
55 XingDa HongYe Guangdong GuangdongZhongshan Zhongshan Manufacturing 51
Establishment
or investment
56 Liaoyang Kangshun Smart Liaoning Liaoyang Liaoning Liaoyang Wholesale 100 Establishmentor investment
57 Liaoyang KangshunRenewable Liaoning Liaoyang Liaoning Liaoyang
Comprehensive utilisation of renewable
resources 100
Establishment
or investment
58 Nanjing Konka Jiangsu Nanjing Jiangsu Nanjing Wholesale 100 Establishmentor investment
59 Konka Huanjia Liaoning Dalian Liaoning Dalian Renewable resources processing trade 51 Establishmentor investment
60 Konka Huanjia (Henan) Henan Lankao Henan Lankao Renewable resources processing trade 51 Establishmentor investment
61 Shanghai Konka Shanghai Shanghai Real estate 100 Establishmentor investment
62 Yantai Kangjin Shandong Yantai Shandong Yantai Real estate 62.8 Establishmentor investment
63 Jiangxi Konka Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51 Establishmentor investment
314Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of (%) Acquisitionbusiness Place of registration Business nature method
Direct Indirect
64 Xinfeng Microcrystalline Jiangxi Nanchang Jiangxi Nanchang Manufacturing and processing 51 Establishmentor investment
65 Shenzhen Nianhua Guangdong GuangdongShenzhen Shenzhen Commercial services 100
Establishment
or investment
66 Shenzhen KONSEMI Guangdong Guangdong Semiconductors 100 EstablishmentShenzhen Shenzhen or investment
67 Chongqing Konka Chongqing Chongqing Software and information technology services 100 Establishmentor investment
68 Konka Eco-Development Guangdong GuangdongShenzhen Shenzhen Commercial services 51
Establishment
or investment
69 Suining Konka Industrial Park Sichuan Suining Sichuan Suining Industrial park development and operation Establishmentmanagement 100 or investment
70 Konka Ronghe Zhejiang Jiaxing Zhejiang Jiaxing Wholesale and retail trade 51 Establishmentor investment
71 Suining Electronic Sichuan Suining Sichuan Suining Commercial services 100 EstablishmentTechnological Innovation or investment
72 Shenzhen Chuangzhi Guangdong GuangdongElectrical Appliances Shenzhen Shenzhen Wholesale 100
Establishment
or investment
73 Chongqing KonkaOptoelectronic Technology Chongqing Chongqing Research & experiment development 70 5
Establishment
or investment
74 Kowin Memory (Shenzhen) Guangdong Guangdong Computer telecommunications and other EstablishmentShenzhen Shenzhen electronic equipment manufacturing 100 or investment
75 Konka Xinyun Semiconductor Jiangsu Yancheng Jiangsu Yancheng Computer telecommunications and other Establishmentelectronic equipment manufacturing 100 or investment
76 Jiangkang (Shanghai)Technology Shanghai Shanghai Research & experiment development 51
Establishment
or investment
315Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
77 Ningbo Kanghr ElectricalAppliance Zhejiang Ningbo Zhejiang Ningbo
Electrical machinery and equipment 60 Establishmentmanufacturing or investment
78 Konka Intelligent Guangdong Guangdong Research & experiment development 51 EstablishmentManufacturing Shenzhen Shenzhen or investment
79 Suining Jiarun Property Sichuan Suining Sichuan Suining Real estate 100 Establishmentor investment
80 Yibin Kangrun Sichuan Yibin Sichuan Yibin Ecological protection and environmental 67 Establishmentgovernance services or investment
81 Hainan Konka Material EstablishmentTechnology Hainan Haikou Hainan Haikou Commercial services 100 or investment
82 Jiangxi High Transparent Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51 EstablishmentSubstrate or investment
83 Nantong Hongdin Jiangsu Nantong Jiangsu Nantong Computer telecommunications and other Establishmentelectronic equipment manufacturing 100 or investment
84 Chuzhou Konka Anhui Chuzhou Anhui Chuzhou Manufacturing 94.9 Establishmentor investment
85 Konka Soft Electronic Sichuan Suining Sichuan Suining Manufacturing 97.5 Establishmentor investment
86 Konka Hongye Electronics Sichuan Suining Sichuan Suining Manufacturing 95.05 Establishmentor investment
87 Kowin Memory (Hong Kong) China Hong Kong China Hong Kong Wholesale of computers software and auxiliary Establishmentequipment 100 or investment
88 Konka Cross-border (Hebei) Hebei Handan Hebei Handan Wholesale 100 Establishmentor investment
89 Konka Huazhong Hunan Changsha Hunan Changsha Commercial services 100 Establishmentor investment
316Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
90 Yibin Kangrun Medical Sichuan Yibin Sichuan Yibin Ecological protection and environmental Establishmentgovernance services 63.65 or investment
91 Shanxi Konka Intelligent Shanxi Xi'an Shanxi Xi'an Manufacture of household cleaning and sanitary Establishmentelectrical appliances 51 or investment
92 Chongqing Xinyuan Chongqing Chongqing Science and technology promotion and EstablishmentSemiconductor application services 75 or investment
93 Anlu Konka Hubei Anlu Hubei Anlu Software and information technology services 100 Establishmentor investment
94 Kanghong Dongsheng Guangdong Guangdong EstablishmentShenzhen Shenzhen Commercial services 95.09 or investment
Guizhou Qiannan Guizhou Qiannan
95 Guizhou Konka New Material Buyi and Miao Buyi and MiaoTechnology Autonomous Autonomous Manufacturing and processing 51
Establishment
or investment
Prefecture Prefecture
96 Guangdong Xinwei Guangdong Lvfeng Guangdong Lvfeng Semiconductors 100 Establishmentor investment
Guizhou Qiannan Guizhou Qiannan
97 Guizhou Kanggui Material Buyi and Miao Buyi and MiaoTechnology Autonomous Autonomous Manufacturing and processing 70
Establishment
or investment
Prefecture Prefecture
98 Nantong Kanghai Jiangsu Nantong Jiangsu Nantong Real estate 51 Establishmentor investment
99 Chongqing Kangyiyun Chongqing Chongqing Real estate 80 Establishmentor investment
100 Jiangxi Konka High-tech Park Jiangxi Shangrao Jiangxi Shangrao Commercial services 100 Establishmentor investment
101 Shangrao Konka ElectronicTechnology Innovation Jiangxi Shangrao Jiangxi Shangrao Research & experiment development 100
Establishment
or investment
317Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
102 Guizhou Konka New Energy Guizhou Kaili Guizhou Kaili Manufacture of non-metallic mineral products 98 Establishmentor investment
103 Zhejiang Konka Electronic Zhejiang Shaoxing Zhejiang Shaoxing Research & experiment development 100 Establishmentor investment
104 Zhejiang Konka TechnologyIndustry Zhejiang Shaoxing Zhejiang Shaoxing Commercial services 51 49
Establishment
or investment
105 Xi'an Konka Intelligent Shanxi Xi'an Shanxi Xi'an Wholesale 51 Establishmentor investment
106 Xi'an Konka Network Shanxi Xi'an Shanxi Xi'an Computer telecommunications and other 100 Establishmentelectronic equipment manufacturing or investment
107 Xi'an Kanghong Technology EstablishmentIndustry Shanxi Xi'an Shanxi Xi'an Commercial services 40 60 or investment
108 Xi'an Konka IntelligentTechnology Shanxi Xi'an Shanxi Xi'an Retail trade 100
Establishment
or investment
109 Anhui Konka Low Carbon Anhui Ma'anshan Anhui Ma'anshan Wholesale 55 Establishmentor investment
110 Kanghong Xintong Guangdong GuangdongShenzhen Shenzhen Commercial services 95.09049
Establishment
or investment
111 Songyang Industry Operation Zhejiang Lishui Zhejiang Lishui Software and information technology services 51 Establishmentor investment
112 Kangyan Technology Guangdong Guangdong Computer telecommunications and other EstablishmentShenzhen Shenzhen electronic equipment manufacturing 100 or investment
113 Konka Photovoltaic Zhejiang Hangzhou Zhejiang Hangzhou Science and technology promotion and 60 EstablishmentTechnology application services or investment
114 Songyang Konka Intelligent Zhejiang Lishui Zhejiang Lishui Wholesale 100 Establishmentor investment
318Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
115 Konka North China Tianjin Tianjin Electrical machinery and equipment 100 Establishmentmanufacturing or investment
116 Digital Technology Guangdong Guangdong EstablishmentShenzhen Shenzhen Software and information technology services 100 or investment
（2）Major non-wholly-owned subsidiaries
Dividends declared to be
Subsidiary Shareholding of minority
Profit or loss attributable
to minority shareholders distributed to minority Closing balance of minorityshareholders in the current year shareholders in the current shareholders' equitiesyear
Shanxi Konka Intelligent Appliance Co. Ltd. 49.00% -3799466.73 193980534.42
（3） Key financial data on major non-wholly-owned subsidiaries
Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Shanxi Konka Intelligent
Appliance Co. Ltd. 523223416.76 566375884.26 1089599301.02 398648732.52 295071926.82 693720659.34
319Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(Continued)
Opening balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Shanxi Konka Intelligent
Appliance Co. Ltd. 744667031.91 89068283.25 833735315.16 419779159.30 10323500.45 430102659.75
(Continued)
Amount incurred in the current year
Subsidiary
Operating income Net profit Total comprehensive income Cash flows from operatingactivities
Shanxi Konka Intelligent Appliance Co. Ltd. 243470872.39 -7754013.73 -7754013.73 138204929.56
(Continued)
Amount incurred last year
Subsidiary
Operating income Net profit Total comprehensive income Cash flows from operatingactivities
Shanxi Konka Intelligent Appliance Co. Ltd. 146157865.44 190320327.09 190320327.09 12271653.60
320Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2. Interests in joint ventures or associated enterprises
（1）Major joint ventures or associated enterprises
Shareholding Accounting
Name of the joint Main Place of Business percentage (%) processing methodventure or associated place of registration nature for investment inenterprise business
Direct Indirect joint ventures orassociated
enterprises
Dongfang Jiakang
No.1 (Zhuhai) Private
Equity Investment
Fund (LP) (formerly:
Dongfang Konka No. Zhuhai Zhuhai
Investment
management 49.95 Equity method
1 (Zhuhai) Private
Equity Investment
Fund (LP))
Shenzhen Jielunte Professional
Technology Co. Ltd. Shenzhen Shenzhen machinery 42.79 Equity methodmanufacturing
（2） Key financial data on significant associated enterprises
Amount incurred at the end of the year/in the current year
Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
(formerly: Dongfang Konka Shenzhen Jielunte
No. 1 (Zhuhai) Private Technology Co. Ltd.Equity Investment Fund
(LP))
Current assets 686882241.74 274817240.18
Non-current assets 338361205.79
Total assets 686882241.74 613178445.97
Current liabilities 10026785.45 261433145.90
Non-current liabilities 133388974.62
Total liabilities 10026785.45 394822120.52
Equities of minority shareholders 9322847.51
Equities attributable to shareholders of the
parent company 676855456.29 209033477.94
Share of net assets calculated based on the
shareholding 338089300.42 94917575.00
Adjustments
321Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount incurred at the end of the year/in the current year
Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
(formerly: Dongfang Konka Shenzhen Jielunte
No. 1 (Zhuhai) Private Technology Co. Ltd.Equity Investment Fund
(LP))
- Goodwill
- Internal unrealised profit
- Others
Carrying value of equity investments in
associated enterprises 338089300.42 94917575.00
Fair values of equity investments of joint
ventures with quoted prices
Operating income 410594556.87
Finance costs -558256.35 4030883.95
Income tax expense 1864514.10
Net profit 32981401.16 -12883145.89
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 32981401.16 -12883145.89
Dividends received from associated
enterprises in the current year
(Continued)
Amount incurred at the beginning of the year/in last year
Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
(formerly: Dongfang Konka Shenzhen Jielunte
No. 1 (Zhuhai) Private Technology Co. Ltd.Equity Investment Fund
(LP))
Current assets 971913521.98 253227910.38
Non-current assets 288320463.89
Total assets 971913521.98 541548374.27
322Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount incurred at the beginning of the year/in last year
Dongfang Jiakang No.1
(Zhuhai) Private Equity
Item Investment Fund (LP)
(formerly: Dongfang Konka Shenzhen Jielunte
No. 1 (Zhuhai) Private Technology Co. Ltd.Equity Investment Fund
(LP))
Current liabilities 3340.00 233990644.75
Non-current liabilities 74263430.52
Total liabilities 3340.00 308254075.27
Equities of minority shareholders 12856913.14
Equities attributable to shareholders of the
parent company 971910181.98 220437385.86
Share of net assets calculated based on the
shareholding 483905786.35 99748594.97
Adjustments
- Goodwill
- Internal unrealised profit
- Others
Carrying value of equity investments in
associated enterprises 483905786.35 99748594.97
Fair values of equity investments of joint
ventures with quoted prices
Operating income 514976783.54
Finance costs -461885.81 -430655.59
Income tax expense
Net profit 16036036.59 7917120.47
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 16036036.59 7917120.47
Dividends received from associated
enterprises in the current year
(3) Combined financial data on insignificant joint ventures and associated enterprises
323Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred at the end of
Amount incurred at the
the year/in the current year beginning of the year/in lastyear
Associated enterprise
Total carrying value of investment 5133476987.87 5767578574.26
The total of following items according to the
shareholding proportions
Net profit -182806294.40 93186179.48
Other comprehensive income -86041.63 -2814803.62
Total comprehensive income -182892336.03 90371375.86
X. Government grants
1. Liability items involving government subsidies
Amount
recognised Amount
Subsidies as non- transferred Other
Account Opening increased in operating to other changes in Closing Related
title balance the current income in incomes in the current balance to assets/
year the the current year income
current year
year
Deferred Related to
revenue 334844966.31 142412107.74 49036136.15 -3085700.00 425135237.90 assets/income
2. Government subsidies recognised as profit and loss of the Reporting Period
Account title Amount incurred in the currentyear Amount incurred last year
Other income 270618031.94 928712500.81
XI . Risks Related to Financial Instruments
The Group's main financial instruments include borrowings accounts receivable accounts payable
trading financial assets and liabilities etc. Please refer to Note VI for detailed descriptions of
various financial instruments. The risks related to these financial instruments and the risk
management policies adopted by the Group to mitigate these risks are described below. The
management of the Group manages and monitors these risk exposures to ensure that these risks are
controlled within a limited scope.
1. Management objectives and policies for various risks
The Group's objective in engaging in the risk management is to achieve the proper balance
between the risks and benefits minimise the negative impact of these risks on the Company's
operating results and maximise the profits of shareholders and other equity investors. Based on
the risk management goal the basic strategy of the Company's risk management is determining
and analysing the various risks faced by the Company setting up the bottom line of risk and
conducting appropriate risk management and timely supervising various risks in a reliable way
324Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
and controlling the risk within the range of limit.
（1）Market risk
1） Exchange rate risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in exchange rate.The foreign exchange risk borne by the Group is related to USD. Except the procurement and
sales in USD of the Company's subsidiaries Hong Kong Konka Hongdin Trading Chain
Kingdom Memory Technologies Hongjet and Jiali the Group's other primary business activities
are settled in RMB. The currency risk arising from the assets and liabilities of such balance in
USD may affect the Group's operating results. As of 31 December 2023 the Group's assets and
liabilities were mainly the balance in RMB except for the assets or liabilities of a balance in USD
as listed below.Item Closing balance Opening balance
Monetary assets 91184116.43 106315046.38
Accounts receivable 85032871.75 86909542.13
Other accounts receivable 110836591.33 111545094.65
Other payables 3453133.32 205546.18
Short-term loans 15090462.34
Accounts payable 4828295.25 24084328.20
Interest payable 10875.01
The Group pays close attention to the impact of exchange rate changes on the Group's foreign
exchange risk and requires major companies in the Group that purchase and sell in foreign
currency to pay attention to the changes in foreign currency assets and liabilities manage the
Group's foreign currency net asset exposure in a unified way implement single currency
settlement and reduce the scale of foreign currency assets and liabilities so as to reduce foreign
exchange risk exposure.
2） Interest rate risk
The Group bears interest rate risk due to interest rate changes of interest-bearing financial assets
and liabilities. The Group's interest bearing financial assets are mainly bank deposits of which the
majority of the variable interest rates are short-term in nature while the interest bearing financial
liabilities are mainly bank borrowings and corporate bonds. The Group's long-term bank
borrowings and corporate bonds are at fixed interest rates. The risk of cash flow changes of
financial instruments caused by interest rate changes is mainly related to short-term bank
borrowings with floating interest rates. The Group's policy is to maintain the floating interest rates
of such borrowings to eliminate the fair value risk of interest rate changes. As of 31 December
2023 the balance of such short-term borrowings was RMB6390592056.27.
（2） Credit risk
As of 31 December 2023 the maximum credit risk exposure that may cause financial losses to the
Group mainly came from losses generated from the Group's financial assets due to failure of the
other party to a contract to perform its obligations and the financial guarantee undertaken by the
Group including:
The carrying amount of financial assets recognised in the consolidated balance sheet; for financial
325Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 Group has set up a group to determine the credit limit conduct
credit approval and implement other monitoring procedures to ensure that necessary measures are
taken to recover overdue claims. In addition the Group reviews the recovery of each single
receivable on each balance sheet date to ensure that sufficient provision for bad debts is made for
the unrecoverable amount. Therefore the Group's management believes that the Group's credit
risk has been greatly reduced.The Group's working capital is deposited in banks with a high credit rating so the credit risk of
working capital is low.The Group has adopted necessary policies to ensure that all customers have good credit records.Except for the top five customers in terms of the amount of accounts receivable the Group has no
other major credit concentration risks. For the financial assets of the Group that have been
individually impaired please refer to 4. Accounts receivable and 7. Other receivables in Note VI.
（3） Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfil its financial obligations on the due
date. The Group manages liquidity risk in the method of ensuring that there is sufficient liquidity
to fulfil debt obligations without causing unacceptable loss or damage to the Group's reputation. In
order to mitigate the liquidity risk the Group's management has carried out a detailed inspection
on the liquidity of the Group including the maturity of accounts payable and other payables bank
credit line and bond financing. The conclusion is that the Group has sufficient funds to meet the
needs of the Group's short-term debts and capital expenditure.The analysis of the financial assets and financial liabilities held by the Group based on the
maturity period of the undiscounted remaining contractual obligations is as follows:
326Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount as of 31 December 2023:
Item Within one year One to two years Two to five years Over five years Total
Financial assets
Monetary assets 6506359577.02 6506359577.02
Held-for-trading financial assets 469636700.78 469636700.78
Notes receivable 533171949.15 533171949.15
Accounts receivable 1450456203.34 82283751.73 149915722.31 43890295.70 1726545973.08
Other accounts receivable 233851669.95 73168059.30 682046038.26 55300.00 989121067.51
Long-term receivables
Other current assets 2359159468.75 2359159468.75
Financial liabilities
Short-term loans 6390592056.27 6390592056.27
Notes payable 990482927.20 990482927.20
Accounts payable 2002263324.19 448060250.16 267430053.63 9078047.99 2726831675.97
Other payables 1122286310.07 436261216.60 300909046.88 63335331.59 1922791905.14
Payroll payable 304733103.63 304733103.63
Non-current liabilities due within
one year 5314147396.36 5314147396.36
327Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Long-term loans 4391903101.00 2477828034.07 909418944.81 7779150079.88
Bonds payable 2426992578.67 2426992578.67
Long-term payables 6135734.07 6135734.07
328Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2. Sensitivity analysis
The Group adopts sensitivity analysis technology to analyse the possible impact of reasonable and
possible changes of risk variables on current profits/losses or shareholders' equity. As any risk
variable rarely changes in isolation and the correlation between variables will have a significant
effect on the final impact amount of the change of a risk variable the following content is based
on the assumption that the change of each variable is independent.
（1） Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow
hedging of overseas operations are highly effective.On the basis of the above assumption under the condition that other variables remain unchanged
the impact of reasonable changes in the exchange rate on current profits/losses and equity after tax
is as follows:
20232022
Exchange
Item rate
fluctuations Impact on net
Impact on
shareholders' Impact on net
Impact on
profit shareholders'equity profit equity
Appreciation
USD of 1%against 16574067.76 12261381.38 15551310.88 11270323.99
RMB
Depreciation
USD of 1%against -16574067.76 -12261381.38 -15551310.88 -11270323.99
RMB
（2） Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with
variable interest rates;
For financial instruments with fixed interest rates measured at fair value market interest rate
changes affect only their interest income or expense;
Changes in the fair values of derivative financial instruments and other financial assets and liabilities are
calculated at themarket interest rate on the balance sheet date by discounted cash flow.On the basis of the above assumptions and under the condition that other variables remain
unchanged the impact of reasonable changes in the interest rate on current profits/losses and
equity after tax is as follows:
20232022
Item Interest ratefluctuations Impact on net Impact on Impact on net Impact on
profit shareholders' equity profit shareholders'equity
Borrowings at
floating interest rates Up 0.5% -24196276.74 -23679719.04 -28813464.20 -28058882.34
Borrowings at Down 0.5% 24196276.74 23679719.04 28813464.20 28058882.34
329Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
20232022
Item Interest ratefluctuations Impact on net Impact on Impact on net Impact on
profit shareholders' equity profit shareholders'equity
floating interest rates
330Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
XII . Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Clos ing fa ir va lue
Item Level-1 fair value Level-2 fair value Level-3 fair value
measurement measurement measurement Total
I. Continuous fair value measurement
(I) Held-for-trading financial assets 469636700.78 469636700.78
1. Financial assets measured at fair value through profit and loss for
the Reporting Period 469636700.78 469636700.78
(II) Accounts receivable financing 173396326.14 173396326.14
ii. Other debt investments
iii. Other equity instruments investments 23841337.16 23841337.16
iv. Investment properties
(V) Other non-current financial assets 2009676398.00 2009676398.00
Total assets continuously measured at fair value 173396326.14 2503154435.94 2676550762.08
Total liabilities continuously measured at fair value
II. Non-continuous fair value measurement
Total assets not continuously measured at fair value
Total liabilities not continuously measured at fair value
331Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2. Basis for determining the market price of continuous and non-continuous level-1 fair
value measurement projects
The first level of the input is an unadjusted quoted price in an active market for the same assets
and liabilities available on the measurement date.
3. Qualitative and quantitative data on valuation techniques and important parameters
adopted for continuous and non-continuous level-2 fair value measurement projects
The Level 2 fair value measurement of input value at Level 2 is the input value observable directly
or indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Qualitative and quantitative data on valuation techniques and important parameters
adopted for continuous and non-continuous level-3 fair value measurement projects
The third level of the input is the unobservable input of related assets and liabilities.XIII . Related Party and Related Party Transactions
Related party relationship
（1） Parent company of the Company
Shareholding Voting right
percentage of percentage of
Name of the parent Place of Business nature Registered the parent the parentcompany registration capital company in company in
the Company the Company
(%)(%)
Tourism real
OCT Group Shenzhen estate electronics RMB12
industry billion
29.99999729.999997
The ultimate controller of the Company is State-owned Assets Supervisor Commission of the
State Council.
（2） Subsidiaries of the Company
Please refer to note IX-1. (1) Subsidiaries for the information of subsidiaries.
（3） Joint ventures and associated enterprises of the Company
Please refer to Note IX-2. (1) Significant joint ventures and associated enterprises for details of
significant joint ventures or associated enterprises of the Company.Information on other joint ventures or associated enterprises having connected transactions with
the Company in the current year or forming balance due to connected transactions made in
previous period:
Name Relationship with the Company
Anhui Kaikai Shijie E-commerce Co. Ltd. Associated enterprise
Anhui Kangfu New Energy Co. Ltd. Associated enterprise
Anhui Kangta Supply Chain Management Co. Ltd. Associated enterprise
Chuzhou Kangxin Health Industry Development Co. Ltd. Associated enterprise
Chutian Dragon Co. Ltd. Associated enterprise
332Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Name Relationship with the Company
Orient Excellent (Zhuhai) Asset Management Co. Ltd. Associated enterprise
Dongguan Kangjia New Materials Technology Co. Ltd. Associated enterprise
Dongguan Konka Smart Electronic Technology Co. Ltd. Associated enterprise
Dongguan Guankang Yuhong Investment Co. Ltd. Associated enterprise
Feidi Technology (Shenzhen) Co. Ltd. Associated enterprise
Guangdong Kangyuan Semiconductor Co. Ltd. Associated enterprise
Hefei KONSEMI Storage Technology Co. Ltd. Associated enterprise
Henan Kangfei Intelligent Electric Appliance Co. Ltd. Associated enterprise
Kangkong Venture Capital (Shenzhen) Co. Ltd. Associated enterprise
Nantong Kangjian Technology Industrial Park Operations and
Management Co. Ltd. Associated enterprise
Puchuang Jiakang Technology Co Ltd. Associated enterprise
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. Associated enterprise
Shenzhen Aimijiakang Technology Co. Ltd. Associated enterprise
Shenzhen Kanghongxing Intelligent Technology Co. Ltd. Associated enterprise
Shenzhen Kangpeng Digital Technology Co. Ltd. Associated enterprise
Shenzhen KONKA E-display Co. Ltd. Associated enterprise
Shenzhen Kangying Semiconductor Technology Co. Ltd. Associated enterprise
Shenzhen Morsemi Semiconductor Technology Co. Ltd. Associated enterprise
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus
Technology Co. Ltd. Associated enterprise
Shenzhen Kangxi Technology Innovation Development Co.Ltd. Associated enterprise
Shenzhen RF-Llink Technology Co. Ltd. Associated enterprise
Shenzhen Yaode Technology Co. Ltd. Associated enterprise
Shenzhen Zhongkang Beidou Technology Co. Ltd. (formerly
named: Shenzhen Zhongbing Konka Technology Co. Ltd.) Associated enterprise
Sichuan Chengrui Real Estate Co. Ltd. Associated enterprise
Guangdong Adreamer Information Technology Co. Ltd. Associated enterprise
(formerly known as Sichuan Huayi Jiakang Technology Co.
333Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Name Relationship with the Company
Ltd.)
KK Smartech Limited Associated enterprise
Yantai Kangyun Industrial Development Co. Ltd. Associated enterprise
Yancheng Kangyan Information Industry Investment
Partnership (Limited Partnership) Associated enterprise
Yibin Kanghui Electronic Information Industry Equity
Investment Partnership (Limited Partnership) Associated enterprise
E3info (Hainan) Technology Co. Ltd. Associated enterprise
Shandong Econ Technology Co. Ltd. Associated enterprise
Chongqing Kangjian Photoelectric Technology Co. Ltd. Associated enterprise
Chongqing Kangxin Equity Investment Fund Limited
Partnership (Limited Partnership) Associated enterprise
Chongqing Kangyiqing Technology Co. Ltd. Associated enterprise
Chongqing Qingjia Electronics Co. Ltd. Associated enterprise
Sichuan Hongxinchen Real Estate Development Co. Ltd. Associated enterprise
Wuhan Kangtang Information Technology Co. Ltd. Associated enterprise
Foshan Zhujiang Media Creative Park Cultural Development
Co. Ltd. Associated enterprise
Panxu Intelligence Co. Ltd. Associated enterprise
（4） Other related parties
Names of other related parties Relationship with the Company
HOHOELECTRICAL&FURNITURECO.LIMITED Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co. Ltd. Minority shareholder of subsidiary
Chuzhou Hanshang Electric Appliance Co. Ltd. Minority shareholder of subsidiary
Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Huanjia Group Co. Ltd. Minority shareholder of subsidiary
Shenzhen New Journey Energy Conservation and
Environmental Protection Service Co. Ltd. Minority shareholder of subsidiary
Central Enterprises Poverty Alleviation (Jiangxi) Industrial Minority shareholder of subsidiary
334Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Names of other related parties Relationship with the Company
Fund Partnership (L.P.)
Chongqing Liangshan Industrial Investment Co. Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Chuzhou State-owned Assets Management Co. Ltd. Minority shareholder of subsidiary
Shenzhen Unifortune Supply Chain Management Co. Ltd. Minority shareholder of subsidiary
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong Technology Co. Ltd. Minority shareholder of subsidiary
Suiyong Rongxin Asset Management Co. Ltd. Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co. Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Jiangsu Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
Jiangxi Meiji Enterprise Co. Ltd. The company controlled by the minorityshareholders of the subsidiary
Jiangxi Xinzixin Real Estate Co. Ltd. The company controlled by the minorityshareholders of the subsidiary
Dai Rongxing Close family members of minorityshareholders of the subsidiary
Zhejiang Donghong Asset Management Co. Ltd. Subsidiary of associated enterprise
AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise
Yantai Kangyue Investment Co. Ltd. Subsidiary of associated enterprise
Chongqing Lanlv Moma Real Estate Development Co. Ltd. Subsidiary of associated enterprise
Anhui Jiasen Precision Technology Co. Ltd. Subsidiary of associated enterprise
Chuzhou Jielunte Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Guangdong Jielunte Technology Co. Ltd. Subsidiary of associated enterprise
Kunshan Jielunte Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Dongguan Kangjie Plastic Mould Co. Ltd. Subsidiary of associated enterprise
335Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Names of other related parties Relationship with the Company
Dongguan Jielunte Plastic Mould Technology Co. Ltd. Subsidiary of associated enterprise
Dongguan Xutongda Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Shenzhen Kangying Storage Technology Co. Ltd. Subsidiary of associated enterprise
Shenzhen E-Display Commercial Display Service Co. Ltd. Subsidiary of associated enterprise
Konka E-Display (Hong Kong) Co. Ltd. Subsidiary of associated enterprise
Guangdong KONKA E-display Co. Ltd. Subsidiary of associated enterprise
Shanghai Jiyi Environmental Technology Co. Ltd. Subsidiary of associated enterprise
2. Related-party transactions
（1） Related party transactions involving the purchase and sale of goods and the supply
and acceptance of services
1） Purchasing goods/receiving services
Related party Amount incurredRelated party transaction in the current
Amount incurred
year last year
Chuzhou Hanshang Electric Appliance Co. Ltd. Purchase of goods 331347005.28 361343092.66
Puchuang Jiakang Technology Co Ltd. Purchase of goods 170595512.46 346728064.51
OCT Group Co. Ltd. and its subsidiaries and Purchase of goods
associates and services 83132471.79 44307009.34
Dongguan Guankang Yuhong Investment Co. Ltd. Purchase service 44767575.56 2539413.51
Shenzhen Jielunte Technology Co. Ltd. and its
subsidiaries Purchase of goods 41713723.62 30219079.03
Anhui Kaikai Shijie E-commerce Co. Ltd. and its
subsidiaries Purchase of goods 23456578.00 10162140.56
Korea Electric Group Co. Ltd. and its subsidiaries Purchase of goods 18096478.28 35518472.38
Shenzhen KONKA E-display Co. Ltd. and its
subsidiaries Purchase of goods 15984953.15 28026932.54
Dongguan Konka Smart Electronic Technology Co. Purchase of goods
Ltd. and services 12468662.09 22735162.01
Dongguan Kangjia New Materials Technology Co.Ltd.. Purchase of goods 10995157.55 12289697.95
KK Smartech Limited Purchase of goods 10415968.34 45029492.58
AMobile Intelligent Corp. Ltd. Purchase of goods 7383664.55 727144.88
336Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount incurred
Related party Related partytransaction in the current
Amount incurred
year last year
Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. Purchase of goods 6126037.72 426363.95
Shenzhen Kangying Semiconductor Technology Co.Ltd. and its subsidiaries Purchase of goods 6102501.84 41158319.46
HOHOELECTRICAL&FURNITURECO.LIMITED Purchase of goods 5864370.25 19585193.41
Shenzhen Kanghongxing Intelligent Technology Co.Ltd. Purchase of goods 8531405.75
Subtotal of other related parties Purchase of goodsand services 1978824.14 4279220.85
（2） Information of sales of goods and provision of labour service
Related party Amount incurred
Related party transaction in the current Amount incurred
year last year
Chuzhou Hanshang Electric Appliance Co. Ltd. Sales of goods 222670602.32 107734901.38
Sales of goods and
Korea Electric Group Co. Ltd. and its subsidiaries provision of labour 79556345.56 161244155.22
service
OCT Group Co. Ltd. and its subsidiaries and Sales of goods and
associates provision of labour 78023377.38 178677010.72service
Shenzhen KONKA E-display Co. Ltd. and its Sales of goods and
subsidiaries provision of labour 44349541.96 39405582.28service
Shenzhen Jielunte Technology Co. Ltd. and its Sales of goods and
subsidiaries provision of labour 43851112.38 157730471.80service
Shandong Kangfei Intelligent Electrical Appliances
Co. Ltd. Sales of goods 21015219.00 52139839.35
E3info (Hainan) Technology Co. Ltd. and its Sales of goods and
subsidiaries provision of labour 12779347.18 7676760.48service
Dongguan Konka Smart Electronic Technology Co.Ltd. Sales of goods 9556588.12 18795403.33
Sales of goods and
Hefei KONSEMI Storage Technology Co. Ltd. provision of labour 7988071.97 45466225.40
service
337Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Amount incurred
Related party transaction in the current Amount incurred
year last year
Shenzhen Kangying Semiconductor Technology Co. Sales of goods and
Ltd. and its subsidiaries provision of labour 7902974.42 9193457.83service
Shenzhen Kangjia Jiapin Intelligent Electrical Provision of labour
Apparatus Technology Co. Ltd. service 4770320.84
Nantong Kangjian Technology Industrial Park Provision of labour
Operations and Management Co. Ltd. service 4716981.13 14150943.39
Yancheng Kangyan Information Industry Investment Provision of labour
Partnership (Limited Partnership) service 3282937.63 3539336.04
Dongguan Kangjia New Materials Technology Co.Ltd. Sales of goods 3406469.40
Chongqing Kangxin Equity Investment Fund Provision of labour
Limited Partnership (Limited Partnership) service 2462263.85
Shenzhen Aimijiakang Technology Co. Ltd. Sales of goods 1455404.13 42265781.54
Anhui Kaikai Shijie E-commerce Co. Ltd. and its Sales of goods and
subsidiaries provision of labour 1413824.79 189148548.38service
Yibin Kanghui Electronic Information Industry
Equity Investment Partnership (Limited Partnership) Sales of goods 1361406.01
Sales of goods and
Sichuan Huayi Jiakang Technology Co. Ltd. provision of labour 83636.22 1095847.95
service
HOHOELECTRICAL&FURNITURECO.LIMITED Sales of goods 21684854.42
Sales of goods and
Subtotal of other related parties provision of labour 5778315.56 39382783.10
service
（3） Related party leases
Lease situation
Lessor Lessee Type of leased Lease fee recognised Lease fee recognisedassets in the current year last year
OCT Group Co. Ltd. and Konka Ventures Commercial
its subsidiaries Development (Shenzhen) residences and 30302719.98 25078697.16Co. Ltd. office buildings
OCT Group Co. Ltd. and Commercial
its subsidiaries Konka Group Co. Ltd. residences and 1819825.44office buildings
（4） Related party guarantees
338Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
1） The Company was guarantor
Contracted Actual Whetherthe
Secured party guarantee guarantee Start date of Expiry dateamount amount Currency guarantee of guarantee guarantee
(RMB'0000) (RMB'0000) iscompleted
Boluo Precision 4000.00 1800.00 CNY 19 January 18 January2023 2024 No
Boluo Precision 4500.00 4103.40 CNY 25 August 25 August2023 2026 No
Konka Circuit 10000.00 4307.67 CNY 19 July 2023 31 January2027 No
Konka Circuit 5000.00 1085.27 CNY 14 September 13 September2022 2023 No
Konka Circuit 5000.00 3212.27 CNY 22 December 21 December2022 2023 No
Anhui Tongchuang 3000.00 3000.00 CNY 2 June 2022 1 June 2023 No
Anhui Tongchuang 10000.00 6440.00 CNY 19 October 31 December2023 2024 No
Anhui Tongchuang 10000.00 8000.00 CNY 6 February 5 February2023 2024 No
Anhui Tongchuang 5000.00 3600.00 CNY 14 August2023 9 April 2024 No
Anhui Tongchuang 3000.00 3000.00 CNY 20 November2023 19 May 2025 No
Liaoyang Kangshun Smart 5000.00 CNY 6 January 5 January2023 2024 No
Konka Xinyun
Semiconductor 6000.00 1550.00 CNY 26 May 2022 25 May 2024 No
Konka Xinyun
Semiconductor 20000.00 5137.50 CNY 12 July 2021 11 July 2022 No
Electronics Technology 8500.00 6064.29 CNY 24 November 10 January2022 2024 No
Electronics Technology 50000.00 50000.00 CNY 26 September 11 August2023 2024 No
Dongguan Konka 5000.00 5000.00 CNY 24 March 23 March2023 2024 No
Dongguan Konka 80000.00 33174.19 CNY 23 June 2021 7 May 2031 No
Telecommunication
Technology 7500.00 5000.00 CNY 23 July 2023 23 July 2024 No
Sichuan Konka 4000.00 3000.00 CNY 23 May 2023 26 April 2026 No
339Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
Secured party guarantee guarantee Currency Start date of Expiry date
the
amount amount guarantee of guarantee guarantee
(RMB'0000) (RMB'0000) iscompleted
Mobile Interconnection 7000.00 1870.12 CNY 10 November 10 November2023 2024 No
Yibin Smart 980.00 980.00 CNY 23 May 2023 26 April 2024 No
Chongqing Konka 38000.00 9280.05 CNY 13 December 13 December2022 2037 No
Xi'an Kanghong 30000.00 6651.43 CNY 26 May 2023 31 DecemberTechnology Industry 2032 No
Konka Soft Electronic 975.00 41.46 CNY 19 December 19 December2022 2023 No
Ningbo Kanghr Electrical
Appliance 6000.00 CNY 2 March 2023 27 July 2024 No
Ningbo Kanghr Electrical
Appliance 6000.00 3000.00 CNY 13 July 2023 12 July 2024 No
Frestec Smart Home 10200.00 510.00 CNY 6 July 2022 4 May 2030 No
Jiangxi Konka 6000.00 2369.00 CNY 15 August 14 August2023 2024 No
Jiangxi Konka 990.00 990.00 CNY 10 March2022 9 March 2024 No
Xinfeng Microcrystalline 7200.00 6000.00 CNY 30 June 2023 29 June 2024 No
Jiangxi High Transparent
Substrate 990.00 990.00 CNY
10 March
2022 9 March 2024 No
Yibin Kangrun 10000.00 10000.00 CNY 13 November 31 December2020 2024 No
Anhui Konka 5500.00 667.02 CNY 31 August 31 August2023 2024 No
Anhui Konka 18000.00 11397.31 CNY 22 September 21 September2023 2024 No
Anhui Konka 10215.95 8591.07 CNY 10 August2021 15 July 2031 No
Anhui Konka 7000.00 5000.00 CNY 29 October 26 October2021 2026 No
Anhui Konka 7000.00 5000.00 CNY 24 October 26 October2022 2026 No
Anhui Konka 7000.00 7000.00 CNY 19 September 18 September2022 2023 No
Anhui Konka 5000.00 984.60 CNY 25 June 2023 24 June 2028 No
340Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
Secured party guarantee guarantee Currency Start date of Expiry date
the
amount amount guarantee of guarantee guarantee
(RMB'0000) (RMB'0000) iscompleted
Shandong Econ Technology 30 September 29 September
Co. Ltd. 3747.44 3040.56 CNY 2022 2024 No
Shandong Econ Technology 2748.12 2748.10 CNY 23 NovemberCo. Ltd. 2022 23 May 2024 No
Shandong Econ Technology
Co. Ltd. 1498.97 1498.97 CNY 22 May 2023 21 May 2024 No
Shandong Econ Technology
Co. Ltd. 3747.44 3327.88 CNY 10 May 2023
11 August
2023 No
Shandong Econ Technology
Co. Ltd. 4996.58 1747.03 CNY 5 July 2023 21 May 2024 No
Shandong Econ Technology
Co. Ltd. 2498.29 2435.11 CNY 19 July 2023 18 July 2024 No
Shandong Econ Technology
Co. Ltd. 999.32 736.00 CNY
28 August
2023 11 June 2024 No
Shandong Econ Technology 1374.06 1374.06 CNY 29 December 28 DecemberCo. Ltd. 2023 2024 No
Shandong Econ Technology 28 December 27 December
Co. Ltd. 2498.29 CNY 2023 2024 No
Foshan Zhujiang Media
Creative Park Cultural 980.00 941.66 CNY 17 May 2022 21 March No
Development Co. Ltd. 2023
OCT Group 60000.00 60000.00 CNY 8 September 8 September2022 2025 No
OCT Group 60000.00 60000.00 CNY 18 October 18 October2022 2025 No
OCT Group 50000.00 50000.00 CNY 22 September 22 September2023 2026 No
OCT Group 30000.00 30000.00 CNY 13 December 13 December2023 2026 No
2） As the secured party
Guarantee Whether the
Guarantor amount Currency Start date of Expiry date ofguarantee guarantee guarantee is(RMB'0000) completed
Electronics Technology 41000.00 CNY 15 September 14 September2022 2023 No
OCT Group 100000.00 CNY 8 January 2021 8 January 2024 No
OCT Group 50000.00 CNY 21 May 2021 21 May 2024 No
OCT Group 80000.00 CNY 9 July 2021 9 July 2024 No
341Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee
Guarantor amount Currency Start date of Expiry date of
Whether the
(RMB'0000) guarantee guarantee
guarantee is
completed
OCT Group 60000.00 CNY 8 September 8 September2022 2025 No
OCT Group 60000.00 CNY 18 October 18 October2022 2025 No
OCT Group 120000.00 CNY 14 July 2022 14 July 2025 No
OCT Group 90000.00 CNY 22 June 2022 21 June 2024 No
OCT Group 68750.00 CNY 24 June 2021 23 June 2024 No
OCT Group 49500.00 CNY 23 August 2022 22 August2025 No
OCT Group 24000.00 CNY 22 December 22 December2022 2025 No
OCT Group 70000.00 CNY 18 January 18 January2023 2026 No
OCT Group 50000.00 CNY 22 September 22 September2023 2026 No
OCT Group 30000.00 CNY 13 December 20 December2023 2026 No
Jiangxi Xinzixin Real Estate Co. Ltd. 1160.81 CNY 15 August 2023 14 August2024 No
Jiangxi Xinzixin Real Estate Co. Ltd. 485.10 CNY 10 March 2022 9 March 2024 No
Jiangxi Xinzixin Real Estate Co. Ltd. 2940.00 CNY 30 June 2023 29 June 2024 No
Jiangxi Xinzixin Real Estate Co. Ltd. 485.10 CNY 10 March 2022 9 March 2024 No
Shandong Econ Technology Co. Ltd. 3300.00 CNY 13 November 31 December2020 2024 No
Chuzhou State-owned Assets 146.74 CNY 31 August 2023 31 AugustManagement Co. Ltd. 2024 No
Chuzhou State-owned Assets 2507.41 CNY 22 September 21 SeptemberManagement Co. Ltd. 2023 2024 No
Chuzhou State-owned Assets
Management Co. Ltd. 1890.03 CNY 10 August 2021 15 July 2031 No
Chuzhou State-owned Assets 29 October 26 October
Management Co. Ltd. 1100.00 CNY 2021 2026 No
Chuzhou State-owned Assets 1100.00 CNY 24 October 26 OctoberManagement Co. Ltd. 2022 2026 No
Chuzhou State-owned Assets 19 September 18 September
Management Co. Ltd. 1540.00 CNY 2022 2023 No
Chuzhou State-owned Assets 216.61 CNY 25 June 2023 24 June 2028 No
342Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee
Guarantor amount Currency Start date of Expiry date of
Whether the
guarantee guarantee guarantee is(RMB'0000) completed
Management Co. Ltd.Wu Guoren 875.00 USD 31 December 31 December2019 2024 No
Wu Guoren 2425.00 USD 31 December 31 December2019 2024 No
Xiao Yongsong 840.00 USD 31 December 31 December2019 2024 No
Xiao Yongsong 2328.00 USD 31 December 31 December2019 2024 No
Shenzhen Unifortune Supply Chain 31 December
Management Co. Ltd. 1403.85 USD 21 June 2021 2022 No
Shenzhen Unifortune Supply Chain 31 December
Management Co. Ltd. 867.30 USD 21 June 2021 2022 No
Guizhou Huajinrun Technology Co.Ltd. 381.15 USD 1 January 2022
31 December
2025 No
Guizhou Huajinrun Technology Co. 157.50 USD 1 January 2022 31 DecemberLtd. 2025 No
Shenzhen Henglongtong Technology 31 December
Co. Ltd. 241.40 USD 1 January 2022 2025 No
Shenzhen Henglongtong Technology
Co. Ltd. 99.75 USD 1 January 2022
31 December
2025 No
AUJET INDUSTRY LIMITED 3227.63 USD 10 November 31 December2021 2023 No
AUJET INDUSTRY LIMITED 89.18 USD 10 November 31 December2021 2023 No
AUJET INDUSTRY LIMITED 1029.00 USD 20 July 2020 31 December2023 No
Zhu Xinming 12446.00 CNY 15 October 14 October2022 2023 No
Zhu Xinming 3399.49 CNY 1 January 2023 31 December2023 No
Zhu Xinming 13249.19 CNY 19 February 18 February2023 2024 No
Zhu Xinming 6860.00 CNY 1 March 2023 28 February2024 No
Zhu Xinming 2330.54 CNY 9 March 2023 8 March 2024 No
Zhu Xinming 2156.00 CNY 1 April 2023 30 September2023 No
343Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee
Guarantor amount Currency Start date of Expiry date of
Whether the
guarantee guarantee guarantee is(RMB'0000) completed
Zhu Xinming 443.45 CNY 13 January 31 December2023 2023 No
Zhu Xinming 44.05 CNY 30 March 2023 31 December2023 No
Zhu Xinming 443.45 CNY 14 April 2023 31 December2023 No
Zhu Xinming 44.05 CNY 30 June 2023 31 December2023 No
Zhu Xinming 443.45 CNY 14 July 2023 31 December2023 No
Zhu Xinming 44.05 CNY 11 October 31 December2023 2023 No
Zhu Xinming 149.45 CNY 13 October 31 December2023 2023 No
Zhu Xinming 44.05 CNY 29 December 31 December2023 2023 No
Zhu Xinming 490.00 CNY 28 February 27 February2023 2024 No
Zhu Xinming 5109.05 CNY 1 January 2023 31 December2023 No
Zhu Xinming 252.63 CNY 13 January 31 December2023 2023 No
Zhu Xinming 101.77 CNY 13 January 31 December2023 2023 No
Zhu Xinming 203.63 CNY 14 April 2023 31 December2023 No
Zhu Xinming 1862.90 CNY 1 January 2023 31 December2023 No
Zhu Xinming 223.85 CNY 17 February 31 December2023 2023 No
Zhu Xinming 93.12 CNY 8 March 2023 31 December2023 No
Zhu Xinming 101.35 CNY 19 May 2023 31 December2023 No
Zhu Xinming 93.12 CNY 8 June 2023 31 December2023 No
Zhu Xinming 93.12 CNY 8 September 31 December2023 2023 No
Zhu Xinming 62.25 CNY 7 December 31 December No
344Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee
Guarantor amount Currency Start date of Expiry date of
Whether the
guarantee guarantee guarantee is(RMB'0000) completed
20232023
Hu Zehong Liang Ruiling Dai Yaojin 2205.00 CNY 1 July 2018 31 December2025 No
Hu Zehong Liang Ruiling Dai Yaojin 4899.02 CNY 1 July 2018 31 December2025 No
Suiyong Rongxin Asset Management
Co. Ltd. 2450.00 CNY 1 January 2018 30 June 2024 No
Suiyong Rongxin Asset Management
Co. Ltd. 2842.00 CNY 1 January 2018
31 December
2023 No
Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying
Gaokede Electronics Technology Co. 735.00 CNY 1 January 2022 31 December No
Ltd. Huaying Gaokelong Electronics 2025
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying
Gaokede Electronics Technology Co. 488.37 CNY 1 January 2022 31 December
Ltd. Huaying Gaokelong Electronics 2025
No
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying
Gaokede Electronics Technology Co. 552.72 CNY 1 January 2022 31 December No
Ltd. Huaying Gaokelong Electronics 2025
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Chuzhou Hanshang Electric Appliance
Co. Ltd. 4533.96 CNY 20 May 2021 19 May 2024 No
Shenzhen Qianhai Datang Technology 441.00 CNY 17 November 16 NovemberCo. Ltd. 2023 2026 No
Konka Ventures 1322.54 CNY 15 December 5 November2021 2022 No
（5） Loans from/to related parties
Related party Amount(RMB'0000) Currency Start date Maturity
Borrowing:
OCT Group 81091.00 CNY 10 January 2022 19 January 2025
OCT Group 50000.00 CNY 19 May 2022 18 May 2025
OCT Group 70000.00 CNY 26 May 2022 25 May 2025
345Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Amount(RMB'0000) Currency Start date Maturity
Chuzhou Hanshang Electric
Appliance Co. Ltd. 10535.00 CNY 1 February 2022 31 December 2023
Chuzhou Hanshang Electric
Appliance Co. Ltd. 490.00 CNY 30 May 2023 31 December 2023
Chuzhou Hanshang Electric
Appliance Co. Ltd. 1837.50 CNY 10 November 2022 31 December 2023
Chuzhou Hanshang Electric
Appliance Co. Ltd. 2450.00 CNY 2 August 2023 2 August 2024
Chuzhou Hanshang Electric
Appliance Co. Ltd. 980.00 CNY 14 February 2023 13 February 2024
Shandong Econ Technology Co. Ltd. 33.00 CNY 31 March 2022 19 March 2024
Shandong Econ Technology Co. Ltd. 31.35 CNY 2 June 2021 19 March 2024
Shandong Econ Technology Co. Ltd. 20.13 CNY 4 June 2021 19 March 2024
Shandong Econ Technology Co. Ltd. 1536.15 CNY 13 August 2021 19 March 2024
Shandong Econ Technology Co. Ltd. 285.85 CNY 13 October 2021 19 March 2024
Shandong Econ Technology Co. Ltd. 40.26 CNY 17 December 2021 19 March 2024
Shandong Econ Technology Co. Ltd. 99.26 CNY 16 February 2022 19 March 2024
Shandong Econ Technology Co. Ltd. 95.96 CNY 15 May 2022 28 February 2024
Shandong Econ Technology Co. Ltd. 39.60 CNY 16 June 2022 28 February 2024
Shandong Econ Technology Co. Ltd. 1070.92 CNY 23 June 2022 28 February 2024
Shandong Econ Technology Co. Ltd. 49.50 CNY 19 September 2022 28 February 2024
Shandong Econ Technology Co. Ltd. 33.00 CNY 19 December 2022 28 February 2024
Shandong Econ Technology Co. Ltd. 97.02 CNY 24 February 2023 28 February 2024
Kangkong Venture Capital
(Shenzhen) Co. Ltd. 245.00 CNY 21 July 2022 18 July 2024
Beijing Xuri Shengxing Technology
Co. Ltd. 228.67 CNY 5 December 2022 30 November 2024
Total 221289.17
Lending:
Dongguan Guankang Yuhong
Investment Co. Ltd. 2223.19 CNY 6 August 2022 25 September 2024
346Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Amount(RMB'0000) Currency Start date Maturity
Dongguan Guankang Yuhong
Investment Co. Ltd. 17376.81 CNY 6 August 2022 25 September 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 13288.00 CNY 18 December 2022 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 2000.00 CNY 18 December 2022 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 735.00 CNY 5 January 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 59.45 CNY 5 January 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 1240.03 CNY 18 December 2022 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 16758.00 CNY 22 March 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 1359.26 CNY 21 March 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 109.95 CNY 21 March 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 1344.36 CNY 22 March 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 2080.72 CNY 18 October 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 562.97 CNY 22 December 2023 21 December 2024
Sichuan Chengrui Real Estate Co.Ltd. 14724.50 CNY 21 January 2022 15 April 2025
Yantai Kangyue Investment Co. Ltd. 12852.70 CNY 16 December 2020 5 November 2022
Yantai Kangyun Industrial
Development Co. Ltd. 10020.00 CNY 23 November 2021 31 March 2024
Yantai Kangyun Industrial
Development Co. Ltd. 949.00 CNY 25 August 2022 31 March 2024
Yantai Kangyun Industrial
Development Co. Ltd. 1394.00 CNY 25 August 2022 31 March 2024
Yantai Kangyun Industrial
Development Co. Ltd. 323.00 CNY 25 August 2022 31 March 2024
Yantai Kangyun Industrial
Development Co. Ltd. 564.00 CNY 25 August 2022 31 March 2024
347Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Amount(RMB'0000) Currency Start date Maturity
Yantai Kangyun Industrial
Development Co. Ltd. 1020.00 CNY 17 March 2022 31 March 2024
Yantai Kangyun Industrial
Development Co. Ltd. 3400.00 CNY 23 May 2022 31 March 2024
Yantai Kangyun Industrial
Development Co. Ltd. 2500.00 CNY 1 June 2022 31 March 2024
Yantai Kangyun Industrial
Development Co. Ltd. 2430.00 CNY 15 November 2022 31 March 2024
Chongqing Lanlv Moma Real Estate
Development Co. Ltd. 18843.00 CNY 25 November 2020 24 November 2023
Sichuan Hongxinchen Real Estate
Development Co. Ltd. 19879.55 CNY 15 September 2022 27 February 2024
Shandong Econ Technology Co. Ltd. 18315.11 CNY 20 December 2023 31 December 2023
Shandong Econ Technology Co. Ltd. 4996.58 CNY 21 December 2023 20 December 2024
Total 171349.18
（6） Asset transfer and debt restructuring of related parties
Related party Related party Amount incurred in Amount incurred lasttransaction the current year year
OCT Group Co. Ltd. and its Transfer of patents
subsidiaries and associates software copyrights and 12843396.23trademarks
Total 12843396.23
（7） Remuneration for key management personnel
Project The current year(RMB'0000) Last year (RMB'0000)
Total remuneration 805.08 2206.85
3. Balance of amount receivable and payable by related parties
（1） Receivables
Closing balance Opening balance
Related party
Book balance Provision for bad Provision for baddebts Book balance debts
Accounts receivable:
348Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Book balance Provision for bad Book balance Provision for baddebts debts
OCT Group Co. Ltd.and its subsidiaries and 100590722.52 15162359.88 156687630.71 8433199.71
associates
Shenzhen Yaode
Technology Co. Ltd. 145562210.29 145562210.29 143135135.62 121664865.28
and its subsidiaries
HOHOELECTRICAL
&FURNITURECO.LI 124378346.69 51863807.49 123273472.66 18429711.73
MITED
Anhui Kaikai Shijie E-
commerce Co. Ltd. 60994542.80 1879460.35 39215316.77 32913147.45
and its subsidiaries
Shenzhen
Kanghongxing
Intelligent Technology 39226376.64 39214097.96 52156655.05 1063995.77
Co. Ltd.Chuzhou Hanshang
Electric Appliance Co. 38536165.52 786137.78 47638172.10 2368282.48
Ltd.Shenzhen Jielunte
Technology Co. Ltd.and its subsidiaries and 8538236.25 173326.20 13523856.80 410843.28
associates
Shenzhen Konda E-
display Co. Ltd. and its 2038868.80 130671.94 10824609.83 220822.05
subsidiaries
Subtotal of other
related parties 36068461.04 4978006.25 22671223.40 675458.06
Total 555933930.56 259750078.15 609126072.94 186180325.81
Financing accounts
receivable/Notes
receivable:
Korea Electric Group
Co. Ltd. and its 10000000.00 103340000.00
subsidiaries
Chuzhou Hanshang
Electric Appliance Co. 10000000.00 5028746.39
Ltd.Anhui Kaikai Shijie E-
commerce Co. Ltd. 63064.76
and its subsidiaries
349Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Book balance Provision for baddebts Book balance
Provision for bad
debts
Total 20000000.00 108431811.15
Dividends receivable
Chongqing Qingjia
Electronics Co. Ltd. 272999.43
Shenzhen Jielunte
Technology Co. Ltd. 941482.38
Total 941482.38 272999.43
Other receivables:
Jiangxi Meiji
Enterprise Co. Ltd. 93512640.31 93512640.31 93512640.31 86901651.51
Dai Rongxing 86150945.74 86150945.74 83058831.58 83058831.58
Shenzhen
Kanghongxing
Intelligent Technology 39888921.64 39888921.64 39888921.64 36024193.48
Co. Ltd.OCT Group Co. Ltd.and its subsidiaries and 31185288.31 20608710.48 35760987.33 20304912.84
associates
Huanjia Group Co.Ltd. 25083675.53 24582002.02 25083675.53 24582002.02
Dongguan Guankang
Yuhong Investment 22000000.00 660000.00 22000000.00 220000.00
Co. Ltd.HOHOELECTRICAL
&FURNITURECO.LI 2485213.19 1612406.32 2443773.67 554492.25
MITED
Hu Zehong 1395042.29 135057.89 2058174.06 41986.75
Chongqing Liangshan
Industrial Investment 75330416.70 1536740.51
Co. Ltd.Subtotal of other
related parties 145049.83 2993.94 159634.37 3230.02
Total 301846776.84 267153678.34 379297055.19 253228040.96
Prepayments:
350Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Book balance Provision for bad Book balance Provision for baddebts debts
OCT Group Co. Ltd.and its subsidiaries and 238185.12 1094665.28
associates
Shenzhen Jielunte
Technology Co. Ltd. 7764.63
and its subsidiaries
Shenzhen Kangying
Semiconductor
Technology Co. Ltd. 5720375.37
and its subsidiaries
Puchuang Jiakang
Technology Co Ltd. 3176682.44
Subtotal of other
related parties 1184075.41
Total 245949.75 11175798.50
Other current assets:
Chuzhou Kangxin
Health Industry 396256021.05 366191797.92
Development Co. Ltd.Yantai Kangyun
Industrial Development 256452466.70 238121355.60
Co. Ltd.Chongqing Lanlv
Moma Real Estate 235830613.25 220546846.61
Development Co. Ltd.Shandong Econ
Technology Co. Ltd. 233116949.03 217760251.21
and its subsidiaries
Dongguan Guankang
Yuhong Investment 224838028.99 183151149.03
Co. Ltd.Yantai Kangyue
Investment Co. Ltd. 170712417.56 18682100.00 160287449.78
Sichuan Chengrui Real
Estate Co. Ltd. 168476988.84 158533783.32
Sichuan Hongxinchen
Real Estate 228799064.74
Development Co. Ltd.Total 1914482550.16 18682100.00 1544592633.47
351Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（2） Payables
Related party Book balance at the Book balance at theend of the year beginning of the year
Accounts payable:
HOHOELECTRICAL&FURNITURECO.LIMITED 10195877.56 6083652.55
Chuzhou Hanshang Electric Appliance Co. Ltd. 43592692.34 22429429.76
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries
and associates 33987442.17 13942717.31
OCT Group Co. Ltd. and its subsidiaries and associates 28693864.79 13114183.37
Shenzhen Konda E-display Co. Ltd. and its subsidiaries 10343033.76 12879895.22
Anhui Kaikai Shijie E-commerce Co. Ltd. and its
subsidiaries 4614860.81 4615128.91
Korea Electric Group Co. Ltd. and its subsidiaries 4374416.65 2609330.74
Panxu Intelligence Co. Ltd. and its subsidiaries 3558734.12 5894192.83
Dongguan Konka Smart Electronic Technology Co. Ltd. 288114.11 1730506.79
Subtotal of other related parties 62595100.98 6167532.67
Total 202244137.29 89466570.15
Notes payable:
Korea Electric Group Co. Ltd. and its subsidiaries 4709353.26 9889686.67
Dongguan Kangjia New Materials Technology Co. Ltd. 4352821.66 5664319.21
Panxu Intelligence Co. Ltd. and its subsidiaries 1962738.39 4425575.22
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries 916829.48 4868677.92
Chuzhou Hanshang Electric Appliance Co. Ltd. 13000000.00
Total 11941742.79 37848259.02
Contractual liabilities/other current liabilities:
OCT Group Co. Ltd. and its subsidiaries and associates 43675417.58 42395460.49
Shenzhen Konda E-display Co. Ltd. and its subsidiaries 28903907.67 2873318.85
Shenzhen Aimijiakang Technology Co. Ltd. (formerly
known as Sichuan Aimijiakang Technology Co. Ltd.) 1030654.81 2541156.83
Shandong Kangfei Intelligent Electrical Appliances Co.Ltd. 246708.55 1328665.36
352Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Book balance at the Book balance at theend of the year beginning of the year
Subtotal of other related parties 1412447.04 1625651.76
Total 75269135.65 50764253.29
Other payables:
Chuzhou Hanshang Electric Appliance Co. Ltd. 195705860.89 185043644.73
Shandong Econ Technology Co. Ltd. and its subsidiaries 42146282.34 42331626.74
OCT Group Co. Ltd. and its subsidiaries and associates 23291255.06 5897248.07
Central Enterprises in poverty-stricken areas (Jiangxi)
Industrial Investment Funds Partnership (L.P.) 9600000.00 2400000.00
Beijing Xuri Shengxing Technology Co. Ltd. 2536047.85 2396943.13
Konka Ventures Development (Shenzhen) Co. Ltd.(formerly known as "Konka Ventures Development 2523500.05 2483024.67
(Shenzhen) Co. Ltd.")
Dongguan Kangjia New Materials Technology Co. Ltd. 410526.24 209400.00
E3info (Hainan) Technology Co. Ltd. and its subsidiaries
and associated enterprises 63099.88 163730.25
Guangdong Wanrundaoheng Culture Tourism Development
Co. Ltd. 83480206.21
Chongqing Kangjian Optoelectronics Technology Co. Ltd. 8029369.86
Subtotal of other related parties 11052687.80 10210205.65
Total 287329260.11 342645399.31
4. Related party commitments
The Group did not have any related party commitments.
5. Others
The Group did not have any related party matters.XIV.Commitments and Contingencies
1. Significant commitments
(1) Capital commitments
Item Closing balance Opening balance
Contract signed but hasn't been recognised
in financial statements
Commitment on construction and purchase
of long-lived assets
353Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Large amount contract 295615545.67 523553381.89
Foreign investment commitments
Total 295615545.67 523553381.89
(2) Other commitments
As of 31December 2023 there were no other significant commitments for the Company to disclose.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) Before the Company acquired Jiangxi Konka Jiangxi Konka and its subsidiaries Xinfeng
Microcrystalline and Jiangxi High Transparent Substrate (formerly known as Nano-Crystallised
Glass) provided joint and several liability guarantee for the loans from Nanchang Rural
Commercial Bank Co. Ltd. to Jiangxi Xinxin Jian'an Engineering Jiangxi Zhongyi Decorative
Material and Jiangxi Shanshi Science and Technology related parties of former controlling
shareholders of Jiangxi Konka and Nanchang Rural Commercial Bank Co. Ltd. then transferred
the claims to China Great Wall AMC Jiangxi Branch. For the failure of Jiangxi Xinxin Jian'an
Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology to
repay the borrowings on time China Great Wall AMC Jiangxi Branch filed a lawsuit requesting
Jiangxi Xinxin Jian'an Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi
Science and Technology to repay the loan principal amounting to RMB300 million and the
liquidated damage and interest arising from it and guarantors Jiangxi Konka Jiangxi High
Transparent Substrate and Xinfeng Microcrystalline to bear joint and several liability for such
debts.On 31 October 2019 the Higher People's Court of Jiangxi Province ruled in the first instance that
Jiangxi Xinxin Jian'an Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi
Technology should repay to China Great Wall AMC Jiangxi Branch the loan principal of
RMB300 million and the interest and liquidated damage arising from it within 10 days from the
effective date of the judgment and Jiangxi Konka New Material Zhu Xinming Leng Sumin
Nano-Crystallised Glass Xinfeng Microcrystalline should bear joint and several liability for all
debts recognised in this judgment. The defendants appealed against the verdict of the first instance
and the Supreme People's Court accepted the appeal. On 24 March 2021 the Supreme People's
Court made the following ruling: I. Civil Judgment (2018) G.M.CH. No. 110 made by the Higher
People's Court of Jiangxi Province is abrogated; II. This case is remanded to the Higher People's
Court of Jiangxi Province for retrial. As of the date of issuance of this report the first instance of
the retrial was decided an appeal had been filed and the second instance of the retrial is in
progress.The actual controller of Jiangxi Konka New Materials Zhu Xinming and his spouse Leng Sumin
Jiangxi Xinzixin Real Estate Co. Ltd. Zhu Zilong Zhu Qingming and Zeng Xiaohong as
guarantors provided a total of approximately RMB143 million of real estate mortgage guarantee
to Great Wall AMC for the above loans. Zhu Xinming and Leng Sumin also provided joint
liability guarantees. In order to avoid the adverse impact of this case on the Company the
Company has agreed in the acquisition agreement of Jiangxi Konka Xinfeng Microcrystalline and
nanometre microcrystalline that all contingent debts incurred by Jiangxi Konka by the original
shareholders of Konka new material in the form of joint and several liability. Jiangxi Xinzixin
Real Estate Co. Ltd. has held a total of approximately RMB243 million of real estate assets as the
case of the anti-guarantee mortgage to Konka group and went through the mortgage registration
procedures. As of the date of this report the case is still on trial and the above commercial
acceptance bill has not been honoured.
(2) As for the dispute of the Company with Luo Zaotong Luo Jingxia Luo Zongyin Luo Zongwu
354Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
and Shenzhen Yaode Technology Co. Ltd. on share repurchase since the other party did not
actively perform the repurchase obligation the Company filed a lawsuit with the People's Court of
Nanshan District Shenzhen. The amount of the subject matter involved in the lawsuit is RMB249
million. On 22 November 2021 the Company applied to the People's Court of Nanshan District
Shenzhen for property preservation. On 11 January 2023 the People's Court of Nanshan District
Shenzhen rendered a verdict of the first instance ruling that Luo Zaotong Luo Jingxia Luo
Zongyin and Luo Zongwu pay the repurchase amount of RMB172 million plus the sum of interest
calculated at 12% per annum from 6 April 2017 to the date of payment of the equity repurchase by
the defendant Luo Zaotong Luo Jingxia Luo Zongyin and Luo Zongwu. As of the date of
issuance of this report the case was executed in progress.
(3) As the acceptor failed to pay the commercial acceptance bills held by the Company upon
maturity the Company as the plaintiff requested debtors Hongtu Sanpower Technology Co. Ltd.Jiangsu Hongtu High Technology Co. Ltd. Sanpower Group Co. Ltd. Nanjing Jiongjiong
Electronic Technology Co. Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd.to RMB200 million bear joint and several liability for the bills and the overdue interest. In July
2019 the company filed a lawsuit with the court and the court has preserved the defendant's
corresponding property. As of the date of issuance of this report the case was under trial.
(4) The amount of the subject matter involved in the dispute between the Company and Wuhan
Jialian Agricultural Technology Development Co. Ltd. Peng Chaojun He Jiaguo He Jiayi Liang
Xiangzhou Xu Yizheng He Fan Pang Huasheng Song Liangming and Liang Xiangmei over the
right of recourse for bills is RMB200 million and the corresponding interest. In September 2020
the Company filed a lawsuit with the Wuhan Intermediate People's Court and the court ordered
the defendant to pay Konka Group the principal amount of the note of RMB200 million and
relevant overdue interest. An amount of RMB38200000 was recovered through the execution of
the case. The defendant applied for retrial during the execution of the case. As of the date of
issuance of this report the case was in retrial.
(5) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Unifortune and Shenzhen Yaode Technology Co. Ltd. Dongsheng Xinluo Technology
(Shenzhen) Co. Ltd. Shenzhen Hongyao Dingsheng Investment Management Co. Ltd.Shenzhen Xiangrui Yingtong Investment Management Co. Ltd. Luo Jingxia Luo Zongwu Luo
Zongyin Luo Zaotong and Luo Saiyin over contracts is RMB155 million. On 8 September 2022
the court issued a judgment in favour of the Company's subsidiary. As of the date of issuance of
this report the case was executed in progress.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity the
Company as the plaintiff filed a lawsuit with the court on the matured bills amounting to
RMB300 million requesting the bill acceptor Shanghai Huaxin and prior parties involved to bear
joint and several liability for the bills and liquidated damage and interest. As of the date of
issuance of this report the case involving RMB150 million is in compulsory execution and
shareholders have been added as persons to be executed in this case. For the remaining RMB150
million the defendants have been ordered to pay the Company the bills and interest which is now
in compulsory execution. As of the date of issuance of this report an amount of RMB1115000
had been recovered through the execution of the case and the case was executed in progress.
(7) The amount of the subject matter involved in the dispute between the Company's subsidiaries
Frestec Refrigeration Anhui Konka Konka Material and Anhui Tongchuang (plaintiff) and
Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Lin
Yuanqin Huang Ruirong Jiangsu Huadong Hardware Zone Co. Ltd. Chuangfu Commerce &
Trade Plaza Real Estate Development (Huizhou) Co. Ltd. and Puning Junlong Trade Co. Ltd.(defendants) over contracts is RMB380 million. As of the date of issuance of this report the
portion of the case related to Xinfei and Meisen was in trial while the rest case was executed in
progress.
355Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(8) A case has been filed on the dispute over the sales and purchase contracts between the
Company's subsidiary Konka Huanjia (plaintiff) and 38 companies (defendant) including Huanjia
Group Co. Ltd. and Dalian Jinshunda Material Recycling Co. Ltd. etc. The amount of the subject
matter involved in it is RMB890 million. Konka Huanjia has applied for the court to seal up and
freeze the defendant's corresponding property. In the case involving RMB322 million of litigation
the court delivered a ruling of the first instance to Kangjia in March 2023 rejecting the suit of
Kangjia Huanjia. The remaining cases involving RMB568 million were decided by the court for
the first instance in December 2022 and Kangjia Huanjiadun has appealed to the Liaoning
Provincial High People's Court. As of the date of issuance of this report the case involving
RMB322 million of litigation was closed while the cases involving RMB568 million were
remanded for retrial. It is currently in the first instance of the retrial.
(9) The amount of the subject matter involved in the dispute between the Company's subsidiary
Dongguan Konka (plaintiff) and Dongguan Gaoneng Polymer Materials Co. Ltd. Wang Dong
Shenzhen Xinlian Xingyao Trading Co. Ltd. Shenzhen Jinchuan Qianchao Network Technology
Co. Ltd. Puning Junlong Trading Co. Ltd. and Huang Zhihao (defendants) over sales and
purchase contracts is RMB90 million. In December 2020 the Company filed a lawsuit with the
court and obtained a judgment in its favour in June 2023. As of the date of issuance of this report
the case was executed in progress.
(10) As the acceptor failed to pay the commercial bills held by the Company upon maturity the
Company as the plaintiff filed a lawsuit with the court on the matured bills amounting to RMB78
million requesting the court to order Hefei Huajun Trading Co. Ltd. and Wuhan Jialian
Agricultural Technology Development Co. Ltd. to pay the Company the bills and the interest for
default and applied for property preservation. The case executed a return of RMB2 million and
the Company is applying with the court for adding shareholders as persons to be executed. As of
the date of issuance of this report an amount of RMB1643500 had been recovered through the
execution of the case and the case was executed in progress.
(11) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Electronic Materials (formerly known as Konka Factoring) (the plaintiff) and Tahoe Group
Co. Ltd. Fuzhou Taijia Enterprise Co. Ltd. and Xiamen Lianchuang Micro-electronics Co. Ltd.(the defendants) over the right of recourse for bills is RMB50 million and the corresponding
interest. On 1 September 1 2021 the Intermediate People's Court of Xiamen Municipality Fujian
Province ordered the defendants to pay the plaintiff e-commercial acceptance bills of RMB50
million and the corresponding interest. On 4 January 2022 the compulsory enforcement was filed.The case executed a return of RMB43 million. As of the date of issuance of this report the case
was executed in progress.
(12) The amount of the subject matter involved in the dispute between the Company (plaintiff) and
China Energy Electric Fuel Co. Ltd. China Energy (Shanghai) Enterprise Co. Ltd. Shanghai
Nengping Enterprise Co. Ltd. and Shenzhen Qianhai Baoying Commercial Factoring Co. Ltd.(defendants) over the right of recourse for bills is RMB50 million and the corresponding interest.In September 2018 the company filed a lawsuit with the Shenzhen Intermediate People's Court
and the court has preserved the defendant's corresponding property. The judgment of this case has
come into effect. The court ordered China Energy Electric Fuel Co. Ltd. and other defendants to
pay the Company the bills of RMB50 million and the interest. As of the date of issuance of this
report an amount of RMB60400 had been recovered through the execution of the case the case
was executed in progress and the Company applied with the court for adding shareholders as
persons to be executed.
(13) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Makena Electronic (Hong Kong) (defendant) over the sales and
purchase contract is RMB5440200. On 7 December 2021 Anhui Konka filed arbitration with the
Shenzhen Court of International Arbitration. On 14 October 2022 the compulsory enforcement
was filed. As of the date of issuance of this report the case was executed in progress.
356Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(14) The amount of the subject matter involved in the dispute between the Company's subsidiary
Anhui Konka (plaintiff) and Shanghai Likai Logistics Co. Ltd. Shenzhen Branch and Shanghai
Likai Logistics Co. Ltd. (defendants) over freight forwarding contracts in maritime and open sea
waters is RMB38 million. On 26 April 2021 Konka applied to Shanghai Maritime Court for
compulsory execution. On 7 June 2021 the court accepted the case. As of the date of issuance of
this report the case was executed in progress.
(15) The amount of the subject matter involved in the dispute between the Company's subsidiary
Pengrun Technology (plaintiff) and Guangan Ou Qi Shi Electronic Technology Co. Ltd. Guan
Hongshao Huaying Gaokede Electronic Technology Co. Ltd. Huaying Gaokelong Electronic
Technology Co. Ltd. Guizhou Jiaguida Technology Co. Ltd. Sichuan Hongrongyuan Real
Estate Co. Ltd. Du Xinyu Linbolong and Wang Shisheng (defendants) over trust contract is
RMB167 million. The case has been applied for property preservation measures. As of the date of
issuance of this report the case was under trial.
(16) The amount of the subject matter involved in the dispute between the Company (plaintiff) and
Yantai Kangyue Investment Co. Ltd. (defendant) over borrowing contract is RMB160 million.The Company has applied to the Shenzhen Intermediate People's Court for property preservation.As of the date of issuance of this report the case was executed in progress.
(17) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Huanjia (plaintiff) and Bank of Fuxin Co. Ltd. Huanjia Group Dalian Jinjia Materials
Recycling Co. Ltd. Dalian Jin Kaixuan Renewable Resources Acquisition Chain Co. Ltd.Dalian Yingtai Paper Co. Ltd. Dalian Zhanhong Renewable Resources Recycling Co. Ltd. and
Wang Jinping (defendants) over the execution objection by an outsider is RMB240 million. As of
the date of issuance of this report the case was under trial.
(18) The amount of the subject matter involved in the dispute between the Company's subsidiary
Jiaxin Technology Co. Limited (plaintiff) and Tripod Electronics Technology (HongKong)
Limited Chen Wenhuan and Chen Baohong (defendants) over a sales and purchase contract of
international goods is RMB51 million. As of the date of issuance of this report the case was under
trial.
(19) In the case of contract dispute between the Company (plaintiff) Zhu Xinming Leng Sumin
Gongqingcheng BRIC Investment Management Partnership (limited partnership) and
Gongqingcheng Xinrui Investment Management Partnership (Limited partnership) (defendant)
due to the failure of the other party to pay performance compensation as agreed the Company
filed an arbitration with the Shenzhen International Arbitration Court in June 2023. The amount of
the subject matter involved in the lawsuit is RMB939044100. As of the date of issuance of this
report the case was under trial.
(20) In the case of contract dispute between the Company's subsidiaries Konka Lifeng (Plaintiff)
and Shenzhen Junxing Communication Technology Co. Ltd. Gu Mei Electronics (Hong Kong)
Technology Co. Ltd. Shenzhen Hongxing Fengda Industrial Development Co. Ltd. Shenzhen
Junxing Junye Electronics Co. Ltd. Zeng Jiankai Zhang Zhenyu Haiying Technology Group
(Hong Kong) Co. Ltd. Zhang Lixia Anhui Baolin Industry Co. Ltd. Zeng Qingpeng Zhong
Yuhua (Defendant) the subject matter of the lawsuit is RMB262711100. As of the date of issue
of this report the case was under trial.
(21) Shenzhen Nianhua (plaintiff) a subsidiary of the Company filed an arbitration with the
Shenzhen International Arbitration Court in March 2023 in a share repurchase dispute with Fang
Xianglong and Jiang Yan (defendant) due to the other party's failure to repurchase the share and
pay the repurchase price as agreed. The subject matter of the lawsuit is RMB151605500. As of
the date of issue of this report the case was under implementation.
(22) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Huanjia (plaintiff) and Xu Jianhua Guangxi Beigang New Materials Co. Ltd. (defendant)
357Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
over a sales and purchase contract is RMB110995700. As of the date of issuance of this report
the case was in progress.
(23) The amount of the subject matter involved in the dispute between the Company's subsidiary
Sichuan Konka (plaintiff) and Shenzhen Junxing Communication Technology Co. Ltd. Shenzhen
Hongxing Fengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co.Ltd. Liuyang Huichuan Heyuan Villa Co. Ltd. Zeng Jiankai Zhong Yuhua (defendant) over a
sales and purchase contract is RMB51.72 million. As of the date of issuance of this report the
case was under implementation.
(24) The Company (plaintiff) filed a lawsuit with the Nanshan District People's Court of Shenzhen
in May 2023 concerning the equity transfer contract dispute with Longrui Haoteng Technology
Development Co. Ltd. Beijing Beida Blue Bird Security System Engineering Technology Co.Ltd. and Beijing Jingrui Haoteng Technology Development Co. Ltd. (Defendant) due to the
failure of the other party to pay the balance of the equity transfer as agreed. The subject matter
involved amounted to RMB45.4076 million. As of the date of issue of this report the case has
been won and the application for enforcement is in progress.
(25) The amount of the subject matter involved in the dispute between Shenzhen Oriental Venture
Capital Investment Co. Ltd. (plaintiff) and the Company (defendant) over a contract is RMB750
million. As of the date of issuance of this report the case was under trial.
(26) The amount of the subject matter involved in the dispute between Sichuan Shuwu Guangrun
logistics Co. Ltd. (plaintiff) and the Company's subsidiary Dongguan Konka (defendants) over a
sales and purchase contract is RMB122834600. As of the date of issuance of this report the case
was under trial.XV. Subsequent Events after the Balance Sheet Date
1. Important non-adjusting matters
As Konka Huanjia a subsidiary of the Company was unable to repay its debts as they matured
and its assets were insufficient to repay all of its debts the Company filed an application with the
People's Court of Ganjizi District Dalian City Liaoning Province (the "Dalian Ganjingzi District
Court") for the bankruptcy and liquidation of Konka Huanjia on 28 February 2024. On 29
February 2024 the Dalian Ganjingzi District Court decided in accordance with the law to accept
the Company's application. On 14 March 2024 the Dalian Ganjingzi District Court appointed
Shanghai SGLA (Dalian) Law Firm to act as the administrator (hereinafter referred to as the
"Administrator") of the bankruptcy and liquidation case of Kangjia Huanjia. On 15 March 2024
the Administrator took over the relevant information and physical objects of Konka Huanjia. The
Company no longer exercises control over Konka Huanjia since 15 March 2024.Except for the above matter the Group had no significant non-adjusting matters to disclose as of
the date of this financial report.
2. Sales return
As of the date of this financial report the Group had no material sales returns.
3. Notes to other subsequent events after the balance sheet date
Except for the above disclosure of matters after the balance sheet date the Group did not have any
other significant events after the balance sheet date.XVI . Other Key Matters
Due to the Company's continuous reduction plan resulting in the Company's loss of significant
influence on Chutian Dragon on 31 March 2023 at the Ninth Meeting of the Tenth Session of the
Board of Directors of the Company the Company considered and approved the Proposal on
Changing the Accounting Method for Chutian Dragon. Thus on 31 March 2023 the Company
358Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
designated the remaining shares held in Chutian Dragon as financial assets at fair value through
profit or loss for the current period and therefore converted them from long-term equity
investments accounted for under the equity method to held-for-trading financial assets. The
investment income resulting from the change in fair value at the date of conversion amounted to
RMB574 million. The cumulative gain or loss from fair value changes during the holding period
from the date of conversion to 31 December 2023 was RMB-52.05 million. As of 31 December
2023 the remaining number of shares held by the Company in Chutian Dragon was 27897662
shares with a shareholding ratio of 6.055%. On the date of this report the closing price of the
financial asset was RMB13.15per share.Apart from the above matters the Group had no other significant transactions and events that had
an impact on investors' decision-making that needed to be disclosed.XVII . Notes to the Main Items of the Financial Statements of the Parent
Company
1. Accounts receivable
（1） Accounts receivable listed by aging portfolio
Aging Book balance at the end of the year Book balance at the beginning of theyear
Within one year (inclusive) 1206382965.89 4177587681.73
One to two years 1471518725.52 125417030.16
Two to three years 116480162.93 75011848.13
Three to four years 58805217.49 130238580.35
Four to five years 122821401.69 637992232.94
Over five years 806589292.93 173615565.37
Total 3782597766.45 5319862938.68
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Accounts receivable
of expected credit
losses withdrawn 752763517.97 19.90 708873222.27 94.17 43890295.70
individually
Accounts receivable
of expected credit
losses withdrawn by
portfolio
Of which: Aging
portfolio 355972586.88 9.41 166216118.67 46.69 189756468.21
359Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Grouping of related
parties 2673861661.60 70.69 2673861661.60
Subtotal of portfolio 3029834248.48 80.10 166216118.67 5.49 2863618129.81
Total 3782597766.45 100.00 875089340.94 23.13 2907508425.51
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Proportion Provision Carrying valueAmount (%) Amount percentage(%)
Accounts receivable
of expected credit
losses withdrawn 723559609.63 13.60 652094110.07 90.12 71465499.56
individually
Accounts receivable
of expected credit
losses withdrawn by
portfolio
Of which: Aging
portfolio 410174776.68 7.71 193889834.11 47.27 216284942.57
Grouping of related
parties 4186128552.37 78.69 4186128552.37
Subtotal of portfolio 4596303329.05 86.40 193889834.11 4.22 4402413494.94
Total 5319862938.68 100.00 845983944.18 15.90 4473878994.50
1） Provision set aside for bad debts of accounts receivable by single item
Closing balance
Name Provision
Book balance Provision for bad percentage Reasons for thedebts (%) provision
Shanghai Huaxin International Expected to be
Group Co. Ltd. 299136676.70 293153943.17 98.00 difficult torecover
Hongtu Sanbao High-tech Expected to be
Technology Co. Ltd. 200000000.00 180000000.00 90.00 difficult torecover
360Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Name Provision for bad ProvisionBook balance debts percentage
Reasons for the
(%) provision
Zhongfu Tiangong Construction Expected to be
Group Co. Ltd. 71389096.65 53541822.49 75.00 difficult torecover
CCCC First Harbor Engineering
Company Ltd. 55438105.00 55438105.00 100.00
Not expected to
be recoverable
China Energy Power Fuel Co.Ltd. 50000000.00 50000000.00 100.00
Not expected to
be recoverable
Shenzhen Kanghongxing
Intelligent Technology Co. Ltd. 36900685.94 36900685.94 100.00
Not expected to
be recoverable
Expected to be
Others 39898953.68 39838665.67 99.85 difficult to
recover
Total 752763517.97 708873222.27 94.17
2） Provision for bad debts for accounts receivable made as per portfolio
* In the portfolio accounts receivable of provision for expected credit loss made by aging
Closing balance
Aging
Book balance Provision for bad Provisiondebts percentage (%)
Within one year 143499372.75 2927387.22 2.04
One to two years 10150867.80 1017116.96 10.02
Two to three years 51446340.40 11673174.64 22.69
Three to four years 790336.20 512770.12 64.88
Four to five years 884722.73 884722.73 100.00
Over five years 149200947.00 149200947.00 100.00
Total 355972586.88 166216118.67 46.69
* In the portfolio accounts receivable of provision for expected credit loss made by other
methods
Closing balance
Aging
Book balance Provision for Provisionbad debts percentage (%)
361Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Aging
Book balance Provision for Provisionbad debts percentage (%)
Grouping of related parties 2673861661.60
Total 2673861661.60
（3） Provision for bad debts of accounts receivable set aside recovered or reclassified in
the current year
Change in the current year
Category Opening balance
Provision Recovery orreclassification
Provision for bad debts of
accounts receivable 845983944.18 32999328.16 3893931.40
Total 845983944.18 32999328.16 3893931.40
(Continued)
Change in the current year
Category Charge-off or write- Closing balance
off Others
Provision for bad debts of
accounts receivable 875089340.94
Total 875089340.94
There were no provisions for bad debts with significant amounts to be recovered or classified in
the Reporting Period.
（4） Accounts receivable actually written off in the current year
There were no accounts receivable actually written off in the current year.
（5） Top five accounts receivable and contract assets in the closing balance categorised by
debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the
current year was RMB3025342043.16 accounting for 79.98% of the total closing balance of
accounts receivable. The total closing balance of provision for bad debts correspondingly set aside
was RMB473153943.17.
2. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 6325400.49 3878580.64
Dividends receivable 395209709.13 393563347.61
Other receivables 7560988861.81 9944884426.80
362Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Total 7962523971.43 10342326355.05
2.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 6325400.49 3878580.64
Total 6325400.49 3878580.64
2.2 Dividends receivable
Item Closing balance Opening balance
Hong Kong Konka 115209709.13 113563347.61
Suining Konka Industrial Park 280000000.00 280000000.00
Total 395209709.13 393563347.61
2.3 Other receivables
（1） Classified by account nature
Nature of fund Book balance at the end of the Book balance at the beginningyear of the year
Intercourse funds among subsidiaries 9069786800.21 11299542985.57
Energy-saving subsidies receivable 141549150.00 141549150.00
Intercourse funds with other related
parties 235267733.09 50667315.53
Deposit security deposit deposit 12721943.88 17354107.03
Others 99060310.98 375797998.76
Total 9558385938.16 11884911556.89
（2） Other receivables listed by aging
Aging Book balance at the end of the Book balance at the beginningyear of the year
Within one year (inclusive) 5210348063.16 8060254524.30
One to two years 2145922239.93 1782503511.04
Two to three years 198105811.44 470794157.38
Three to four years 439082181.54 1006460259.82
363Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Aging Book balance at the end of the Book balance at the beginningyear of the year
Four to five years 1004762554.22 389224526.20
Over five years 560165087.87 175674578.15
Total 9558385938.16 11884911556.89
（3） Classified presentation of other receivables by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Proportion Provision Carrying valueAmount (%) Amount percentage(%)
Other
receivables of
expected credit 2110298248.95 22.08 1958251651.39 92.80 152046597.56
losses set aside
by single item
Other
receivables of
provision for bad
debts set aside
by credit risk
characteristic
portfolio:
Aging portfolio 84338231.39 0.88 32163233.75 38.14 52174997.64
Low-risk
portfolio 16543239.09 0.17 6982191.21 42.21 9561047.88
Grouping of
related parties 7347206218.73 76.87 7347206218.73
Subtotal of
portfolio 7448087689.21 77.92 39145424.96 0.53 7408942264.25
Total 9558385938.16 100.00 1997397076.35 20.90 7560988861.81
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Proportion Provision Carrying valueAmount (%) Amount percentage(%)
Other 1901377741.07 16.00 1882393905.79 99.00 18983835.28
receivables of
364Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Amount Proportion
Provision Carrying value
(%) Amount percentage(%)
expected credit
losses set aside
by single item
Other
receivables of
provision for bad
debts set aside
by credit risk
characteristic
portfolio:
Aging portfolio 94419620.35 0.79 54385072.09 57.60 40034548.26
Low-risk
portfolio 16755275.76 0.14 3248152.21 19.39 13507123.55
Grouping of
related parties 9872358919.71 83.07 9872358919.71
Subtotal of
portfolio 9983533815.82 84.00 57633224.30 0.58 9925900591.52
Total 11884911556.89 100.00 1940027130.09 16.32 9944884426.80
1） Provision set aside for bad debts of other receivables by the general expected credit
loss model
Phase I Phase II Phase III
Expected credit
loss during the Expected credit
Provision for bad debts Expected
credit loss for whole loss during the
Total
the next 12 outstanding whole outstanding
months maturity (without maturity (withcredit credit impairment)
impairment)
Balance as of 1 January
2023357726.7557275497.551882393905.791940027130.09
Balance as of 1 January
2023 in the current year -73128.86 73128.86
-- Transferred to Phase II -73128.86 73128.86
-- Transferred to Phase III
-- Reclassified under Phase
II
365Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
-- Reclassified under Phase
I
Provision in the current
year 557099.12 75857745.60 76414844.72
Recovery in the current
year 19044898.46 19044898.46
Charge-off in the current
year
Write-off in the current
year
Other changes
Balance as at 31 December
2023841697.0138303727.951958251651.391997397076.35
Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within one year the loss
provision is measured according to the expected credit losses in the next 12 months.The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed one year the loss provision is measured based on the expected credit losses
for the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred the loss provision is measured according to the credit losses that
have occurred throughout the duration.
（4） Provision for bad debts of other receivables set aside recovered or reclassified in the
current year
The amount of provision for bad debts in the current year was RMB57369946.26 and other
receivables actually written off were RMB0.00.
（5） Other receivables actually written off in the current year
There were no other receivables actually written off in the current year.
（6） Other receivables with top five year-end balances categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the
current year was RMB6550250572.65 accounting for 68.53% of the total closing balance of
other receivables. The total closing balance of provision for bad debts correspondingly set aside
was RMB1744736434.49.
366Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
3. Long-term equity investment
Closing balance Opening balance
Item Book balance Provision for Carrying value Book balance Provision for Carrying value
impairment impairment
Investment in
subsidiaries 7156825933.98 781480000.00 6375345933.98 7277554047.75 781480000.00 6496074047.75
Investment in associated
enterprises and joint 2279596484.20 301754900.04 1977841584.16 2824333468.08 219718378.41 2604615089.67
ventures
Total 9436422418.18 1083234900.04 8353187518.14 10101887515.83 1001198378.41 9100689137.42
（1） Investment in subsidiaries
Increase in the Decrease in the current Impairment provision Closing balance of theInvestee Opening balance current year year Closing balance set aside in the current provision foryear impairment
Konka Ventures 2550000.00 2550000.00
Anhui Konka 122780937.98 122780937.98
Konka Electronic
Materials 300000000.00 300000000.00
Konka Unifortune 15300000.00 15300000.00
Wankaida 10000000.00 10000000.00
Dongguan Konka 274783988.91 274783988.91
367Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Investee Opening balance Increase in the Decrease in the current
Impairment provision Closing balance of the
current year year Closing balance set aside in the current provision foryear impairment
Konka Europe 3637470.00 3637470.00
Telecommunication
Technology 360000000.00 360000000.00
Mobile Interconnection 100000000.00 100000000.00
Anhui Tongchuang 779702612.22 779702612.22
Kangjiatong 30749800.00 30749800.00
Pengrun Technology 25500000.00 25500000.00
Beijing Konka Electronic 200000000.00 200000000.00
Konka Circuit 297650000.00 139400000.00 437050000.00
Hong Kong Konka 781828.61 781828.61
Konka Investment 500000000.00 500000000.00
Electronics Technology 1000000000.00 1000000000.00
Konka Huanjia 91800000.00
Shanghai Konka 40000000.00 40000000.00
Jiangxi Konka 689680000.00
Shenzhen Nianhua 30000000.00 30000000.00
368Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Investee Opening balance Increase in the Decrease in the current
Impairment provision Closing balance of the
current year year Closing balance set aside in the current provision foryear impairment
Shenzhen KONSEMI 100000000.00 100000000.00
Konka Eco-Development 50000.00 50000.00
Suining Konka Industrial
Park 200000000.00 200000000.00
Konka Ronghe 5100000.00 5100000.00
Suining Electronic
Technological Innovation 200000000.00 200000000.00
Shenzhen Chuangzhi
Electrical Appliances 10000000.00 10000000.00
Kanghong (Yantai)
Environmental Protection 1025100.00 1025100.00
Chongqing Kangxingrui 25500000.00 25500000.00
Chongqing Konka
Optoelectronic 933333333.33 933333333.33
Technology
Kowin Memory
(Shenzhen) 192520000.00 192520000.00
Ningbo Kanghr Electrical
Appliance 90000000.00 90000000.00
369Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Investee Opening balance Increase in the Decrease in the current
Impairment provision Closing balance of the
current year year Closing balance set aside in the current provision foryear impairment
Konka Intelligent
Manufacturing 510.00 510.00
Suining Jiarun Property 10000000.00 10000000.00
Yibin Kangrun 67000000.00 67000000.00
Hainan Konka Material
Technology 9205452.93 9205452.93
Konka Cross-border
(Hebei) 50000000.00 50000000.00
Konka Huazhong 30000000.00 30000000.00
Guizhou Kanggui
Material Technology 70000000.00 42000000.00 28000000.00
Nantong Kanghai 15300000.00 15300000.00
Jiangxi Konka High-tech
Park 50000000.00 50000000.00
Shangrao Konka
Electronic Technology 30000000.00 30000000.00
Innovation
Sichuan Hongxinchen 20000000.00 20000000.00
Xi'an Kanghong 12000000.00 12000000.00
370Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Investee Opening balance Increase in the Decrease in the current
Impairment provision Closing balance of the
current year year Closing balance set aside in the current provision foryear impairment
Technology Industry
Xi'an Konka Intelligent
Technology 50000000.00 50000000.00
Tianjin Konka 171603013.77 171603013.77
Songyang Konka
Intelligent 30000000.00 30000000.00
Konka North China 30000000.00 30000000.00
Total 6496074047.75 139400000.00 260128113.77 6375345933.98 781480000.00
（2） Investment in associated enterprises and joint ventures
Changes in the current year
Investee Balance as at the end oflast year Increase in the Decrease in the Profit or loss of investment Changes in other
investment investment recognised by the equity method comprehensive income
Anhui Kaikai Shijie E-commerce Co. Ltd. 17400738.44 93109.02
Kunshan Kangsheng Investment Development Co.Ltd. 219065984.22 -52251209.71
Chutian Dragon Co. Ltd. 523726463.18 109831325.31
Shanxi Silk Road Cloud Intelligent Tech Co. Ltd. 13333698.78 -8144973.65 -1136.65
371Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Investee Balance as at the end oflast year Increase in the Decrease in the Profit or loss of investment Changes in other
investment investment recognised by the equity method comprehensive income
Shenzhen Kanghongxing Intelligent Technology
Co. Ltd.Shenzhen Zhongkang Beidou Technology Co. Ltd.(formerly named: Shenzhen Zhongbing Konka
Technology Co. Ltd.)
Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 5371364.87 1719225.60
Shenzhen Yaode Technology Co. Ltd.Wuhan Tianyuan Environmental Protection Co. Ltd. 352295640.91 35840487.27
Shenzhen KONKA E-display Co. Ltd. 12567702.52 2778976.23 8655.99
Chuzhou Konka Technology Industry Development
Co. Ltd. 5899324.39 -5899324.39
Chuzhou Kangjin Health Industrial Development
Co. Ltd. 172987384.01 -36821079.39
Nantong Kangjian Technology Industrial Park
Operations and Management Co. Ltd. 5625680.96
Shenzhen Kangyue Enterprise Co. Ltd. 2999091.61 -2769080.00
Dongguan Guankang Yuhong Investment Co. Ltd.
372Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year
Investee Balance as at the end oflast year Increase in the Decrease in the Profit or loss of investment Changes in other
investment investment recognised by the equity method comprehensive income
Chongqing Yuanlv Benpao Real Estate Co. Ltd.Chuzhou Kangxin Health Industry Development
Co. Ltd. 10835065.75 -2558013.46
E3info (Hainan) Technology Co. Ltd. 8574609.73
Shenzhen Kangpeng Digital Technology Co. Ltd. 3411153.10 -1641132.09
Yantai Kangyun Industrial Development Co. Ltd. 4135456.96 -4135456.96
Shandong Econ Technology Co. Ltd. 1044184489.99 -29643085.83
Dongguan Kangjia New Materials Technology Co.Ltd. 3950928.27 -93956.95
Chongqing E2info Technology Co. Ltd. 163744169.42 28155362.85
Sichuan Chengrui Real Estate Co. Ltd. 7851192.26 -7851192.26
Wuhan Kangtang Information Technology Co. Ltd. 26654950.30 -897727.70
Sichuan Hongxinchen Real Estate Development Co.Ltd. 6161929.55 -3702243.10
Total 2604615089.67 6161929.55 109831325.31 -87914423.54 100628.36
(Continued)
373Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year Closing balance
Investee Cash dividends or Provision set Ending balance ofChanges in other depreciation reserve
equities profits declared to aside for Others (Carrying value)be distributed impairment
Anhui Kaikai Shijie E-commerce Co. Ltd. 17493847.46
Kunshan Kangsheng Investment Development Co.Ltd. 53900000.00 112914774.51
Chutian Dragon Co. Ltd. -413895137.87
Shanxi Silk Road Cloud Intelligent Tech Co. Ltd. 5187588.48
Shenzhen Kanghongxing Intelligent Technology Co.Ltd. 5158909.06
Shenzhen Zhongkang Beidou Technology Co. Ltd.(formerly named: Shenzhen Zhongbing Konka
Technology Co. Ltd.)
Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 7090590.47
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental Protection Co. Ltd. 127671222.93 3078000.00 512729351.11
Shenzhen KONKA E-display Co. Ltd. 15355334.74
Chuzhou Konka Technology Industry Development
Co. Ltd.
374Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year Closing balance
Investee Cash dividends or Provision set Ending balance ofChanges in other depreciation reserve
equities profits declared to aside for Others (Carrying value)be distributed impairment
Chuzhou Kangjin Health Industrial Development Co.Ltd. 136166304.62
Nantong Kangjian Technology Industrial Park
Operations and Management Co. Ltd. 5625680.96
Shenzhen Kangyue Enterprise Co. Ltd. 230011.61 230011.61
Dongguan Guankang Yuhong Investment Co. Ltd.Chongqing Yuanlv Benpao Real Estate Co. Ltd.Chuzhou Kangxin Health Industry Development Co.Ltd. 8277052.29
E3info (Hainan) Technology Co. Ltd. 8574609.73
Shenzhen Kangpeng Digital Technology Co. Ltd. 1770021.01
Yantai Kangyun Industrial Development Co. Ltd.Shandong Econ Technology Co. Ltd. -4074486.01 81806510.02 928660408.13 81806510.02
Dongguan Kangjia New Materials Technology Co.Ltd.. 3856971.32
Chongqing E2info Technology Co. Ltd. -5977391.99 185922140.28
375Notes to financial statements of Konka Group Co. Ltd.
1 January 2023-31 December 2023
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current year Closing balance
Investee Changes in other Cash dividends or Provision set
Ending balance of
equities profits declared to aside for Others (Carrying value)
depreciation reserve
be distributed impairment
Sichuan Chengrui Real Estate Co. Ltd.Wuhan Kangtang Information Technology Co. Ltd. 25757222.60
Sichuan Hongxinchen Real Estate Development Co.Ltd. 2459686.45
Total 117619344.93 56978000.00 82036521.63 -413895137.87 1977841584.16 301754900.04
Note 1: The above investees are all associated enterprises.Note 2: "Other" represents the conversion of long-term equity investments accounted for under the equity method to financial assets.
376Konka Group Co. Ltd. Annual Report 2023
4. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
business 1677401625.28 1809632592.29 1624421165.68 1872104013.01
Other business 170593467.51 71483083.62 187362353.34 90386351.96
Total 1847995092.79 1881115675.91 1811783519.02 1962490364.97
（2） Information in relation to the trade price apportioned to the residual contract performance
obligation
The amount of revenue corresponding to performance obligations that have been contracted but have not yet
been fulfilled or completed at the end of the year is RMB15506737.84 of which RMB15506737.84 is
expected to be recognised as revenue in 2024.
5. Investment income
Item Amount incurred in thecurrent year Amount incurred last year
Long-term equity investment income calculated by the cost method 125381404.76
Returns on long-term equity investments calculated by the equity
method -87914423.54 138908805.41
Return on investment arising from the disposal of long-term equity
investments 197370626.59 275394866.81
Conversion of long-term equity investments accounted for by the
equity method to financial assets 574780174.75
Investment income from disposal of financial assets at fair value
through profit or loss -55975275.41
Interest income from debt investments during the holding period 6532591.02 4640244.26
Return on investment in the financial assets held for trading during
the holding period 9383976.00
Others 500000.00 -5378929.04
Total 644677669.41 538946392.20
XVIII. Supplementary Materials to the Financial Statements
377Konka Group Co. Ltd. Annual Report 2023
1. Items and amounts of non-recurring profit or loss in the current year
Item Amount of current year Notes
Profit or losses on disposal of non-current assets (including the portion offset for provisions
for asset impairment) 198866019.16
Government subsidies included in profit and loss of the current period (except for
government subsidies that are closely related to the Company's normal business operation
comply with national policies and are enjoyed in accordance with defined criteria and have 264798178.16
a continuing impact on the Company's profit or loss)
Profit or losses from changes in fair value of financial assets and liabilities held by non-
financial corporations and profit or losses from the disposal of financial assets and
liabilities except for effective hedging operations related to the Company's normal business -88236451.43
operations
Dispossession surcharge to non-financial institutions included in the current profit and loss
Gain/Loss on entrusting others with investments or asset management
Gain/loss on entrustment loans 118808006.95
Losses on assets resulted from force majeure factors such as natural disasters
Reclassification of impairment loss allowances of receivables separately tested for
impairment 3055800.22
Profits arising from business combination when the combined cost is less than the
recognised fair value of net assets of the merged company
Current net profit or loss of subsidiaries acquired in business combination under the same
control from period-beginning to combination date
Profit/Loss on non-monetary asset swap
Profit/Loss on debt restructuring
One-time costs incurred by an enterprise as a result of the discontinuation of a related
operating activity such as expenses for relocating employees
One-time impact on profit or loss for the current period due to adjustments in tax
accounting and other laws and regulations
One-time recognition of share-based payment expense due to cancellation and modification
of equity incentive plans
Cash-settled share-based payments profit or losses arising from changes in the fair value of
employee compensation payable after the date of exercisability
Gain/loss on change in fair value of investment property of which the follow-up
measurement is carried out adopting fair value method
Income from transactions at significantly unfair prices
Profit and losses arising from contingencies unrelated to the normal operation of the
Company's business
378Konka Group Co. Ltd. Annual Report 2023
Item Amount of current year Notes
Custodian fees earned from entrusted operation
Non-operating income and expenses other than those listed above -64433346.64
Other profit and loss items in line with the definition of non-recurring gains and losses 571315980.43
Subtotal 1004174186.85
Less: Income tax effect 239431992.39
Effect of minority shareholders' equities (after tax) 14087171.21
Total 750655023.25 -
(1)Specific information on other profit and loss items that meet the definition of non recurring gains and losses:
Item Amount Reasons
The main reason is that the company disposed of a portion
of its equity in a subsidiary holding company which no
Chutian Dragon Co. Ltd. 574780174.75 longer has a significant impact resulting in a change in theaccounting method for this reporting period from long-term
equity investments (equity method) to trading financial
assets resulting in non recurring gains and losses.
(2) The Company recognises items that are not listed in the Explanatory Announcement No. 1 on Information
Disclosure by Companies Offering Securities to the Public--Non-recurring Profit or Loss (Revised in 2023) as
non-recurring profit or loss items and the those involving significant mounts as well as the non-recurring profit
or loss items listed as recurring profit or loss items
Item Amount Reasons
Government subsidies which are closely related to the
Software tax refund 5819853.78 normal business of the company and which are inaccordance with national policies and certain standard quota
or quantitative amount
2. Return on net assets and earnings per share
Weighted average EPS (RMB/share)
Profit for the Reporting Period Weighted average return on net
assets (%) Basic earnings per Diluted earningsshare per share
Net profit attributable to ordinary
shareholders of the Company as the -32.58 -0.8986 -0.8986
Parent
Net profit attributable to ordinary -43.89 -1.2103 -1.2103
shareholders of the Company as the
379Konka Group Co. Ltd. Annual Report 2023
Parent before exceptional gains and
losses
The Board of Directors
Konka Group Co. Ltd.
1 April 2024
380
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