Konka Group Co. Ltd. Third Quarterly Report 2024

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2024-64

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

133333 133759 22 Konka 05 24 Konka 01

133782 133783 24 Konka 02 24 Konka 03

KONKA GROUP CO. LTD.THIRD QUARTERLY REPORT 2024

Konka Group Co. Ltd. (hereinafter referred to as the “Company”) and all the members o f the

Company’s Board of Directors hereby guarantee that the contents of this Report are true accurate

and complete and free of any misrepresentations misleading statements or material omissions.Important Notes:

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

supervisors and senior management of the Company hereby guarantee that the contents of this

Report are true accurate and complete and free of any misrepresentations misleading statements

or material omissions and collectively and individually accept legal responsibility for such

contents.

2. The Company’s legal representative Chief Financial Officer (CFO) and head of the financial

department (equivalent to financial manager) hereby guarantee that the financial statements

carried in this Report are factual accurate and complete.

3. Indicate by tick mark whether the financial statements in this Report have been audited by an

independent auditor.□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

YoY change

Q3 2024 Q1-Q3 2024 YoY change (%)

(%)

Operating revenue (RMB) 2707452109.09 -38.53% 8119982481.56 -45.42%

Net profit attributable to the listed

-518498087.730.60%-1606079930.28-124.67%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -614340480.96 -26.37% -1717419091.68 -24.65%

exceptional gains and losses (RMB)

Net cash generated from/used in

——-390967445.57-21.25%

operating activities (RMB)

Basic earnings per share (RMB/share) -0.2153 0.60% -0.6670 -124.65%

1Konka Group Co. Ltd. Third Quarterly Report 2024

Diluted earnings per share (RMB/share) -0.2153 0.60% -0.6670 -124.65%

Weighted average return on equity (%) -10.71% -3.61% -33.23% -23.50%

30 September 2024 31 December 2023 Change (%)

Total assets (RMB) 32531256517.25 35824818212.66 -9.19%

Equity attributable to the listed

4042567093.805644401184.65-28.38%

company’s shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q3 2024 Q1-Q3 2024 Note

Gain or loss on disposal of non-current assets (inclusive of

92654816.8493492190.52

impairment allowance write-offs)

Government grants recognised in profit or loss (exclusive of those

that are closely related to the Company's normal business

operations and given in accordance with defined criteria and in 22678686.74 77850290.37

compliance with government policies and have a continuing

impact on the Company's profit or loss)

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 the 10784450.11 -155134743.01

effective portion of hedges that is related to the Company's

normal business operations)

Gain/loss on entrustment loans 30496357.46 93651218.50

Gain/loss from debt restructuring -38798.22 -38798.22

Other non-operating income and expense other than the above -10827074.93 1005056.73

Other items that meet the definition of exceptional gain/loss -877012.92 29123697.75

Less: Income tax effects 42790050.81 12899210.61

Non-controlling interests effects (after tax) 6238981.04 15710540.63

Total 95842393.23 111339161.40 --

Other items that meet the definition of exceptional gain/loss:

√ Applicable □ Not applicable

Amount

Item Reason

involved (RMB)

In March 2024 a majority-owned subsidiary of the Company in Dalian

entered bankruptcy liquidation procedures according to the court judgment

Reversal of previously and the bankruptcy liquidation administrator appointed by the court took

31971388.49

recognized excess losses over the relevant materials and physical objects. The Company no longer

controlled the company and thus reversed the portion of excess losses

recognized previously.Income from the

derecognition of financial -2847690.74 Income from the derecognition of notes receivable

assets at amortized cost

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

Amount involved

Item Reason

(RMB)

Tax rebates on Government subsidies given in the Company’s ordinary course of business at fixed

2746381.55

software quotas or amounts as per government’s uniform standards

(III) Changes in Key Financial Statement Line Items and Explanation

√ Applicable □ Not applicable

2Konka Group Co. Ltd. Third Quarterly Report 2024

Unit: RMB

Percentage

Item 30 September 2024 1 January 2024 Main reason for change

of change

Trading financial Change in fair value of trading financial assets

302697001.89469636700.78-35.55%

assets held by the Company during Q1-Q3 2024

Decreased notes receivable that were endorsed or

Receivables financing 104820587.75 173396326.14 -39.55%

discounted during Q1-Q3 2024

Taxes payable 87934856.08 214417135.87 -58.99% Payment of taxes during Q1-Q3 2024

Employee benefits Payment of employee benefits during Q1-Q3

182744111.78304733103.63-40.03%

payable 2024

Percentage

Item Q1-Q3 2024 Q1-Q3 2023 Main reason for change

of change

YoY decrease in revenue scale due to that the

Company adjusted and optimized non-core

Operating revenue 8119982481.56 14876693170.75 -45.42%

business with weak synergy with the main

business during Q1-Q3 2024

There was a large investment income in the same

period of last year due to the change in the

accounting method of some of the Company’s

interest in a joint stock company but there was

Net profit attributable

no such thing during Q1-Q3 2024. However the

to the listed

-1606079930.28 -714870927.30 -124.67% Company improved its gross profit amount year-

company’s

on-year after deducting the period expenses by

shareholders

reducing costs and controlling expenses. In

addition the net profit attributable to the listed

company’s shareholders improved year-on-year

in the Reporting Period.Decrease in exchange gain due to exchange rate

Finance costs 470596320.65 360849912.60 30.41%

fluctuation during Q1-Q3 2024

Decrease in government grants received during

Other income 80596671.92 176081823.18 -54.23%

Q1-Q3 2024

There was a large investment income in the same

period of last year due to the change in the

Return on investment 53009363.00 775916021.84 -93.17% accounting method of some of the Company’s

interest in a joint stock company but there was

no such thing during Q1-Q3 2024

YoY decrease in both proceeds from sale of

Net cash generated

commodities and rendering of services and cash

from/used in -390967445.57 -322441824.76 -21.25%

paid by the Company for purchasing goods and

operating activities

receiving labor services during Q1-Q3 2024

Net cash generated

Decreased total investment amount during Q1-Q3

from/used in investing -382182109.74 -64712448.47 -490.59%

2024

activities

Net cash generated

YoY increase in repayment of borrowings during

from/used in -2088444824.07 250756759.78 -932.86%

Q1-Q3 2024

financing activities

II Shareholder Information

(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting

Rights as well as Holdings of Top 10 Shareholders

Unit: share

Number of preference shareholders with resumed voting

Number of ordinary shareholders 95081 0

rights (if any)

Top 10 shareholders

Shareholdi Restricted Shares in pledge

Nature of Total shares

Name of shareholder ng shares marked or frozen

shareholder held

percentage held Status Shares

OVERSEAS CHINESE TOWN State-owned legal

HOLDINGS COMPANY person 21.75% 523746932 0

3Konka Group Co. Ltd. Third Quarterly Report 2024

CITIC SECURITIES

BROKERAGE (HONG KONG) Foreign legal person 7.48% 180001110 0

CO. LTD.GUOYUAN SECURITIES

Foreign legal person

BROKER (HK) CO. LTD. 2.50% 60130843 0

HOLY TIME GROUP LIMITED Foreign legal person 2.38% 57289100 0

HONG KONG SECURITIES

Foreign legal person 1.02% 24641490 0

CLEARING COMPANY LTD.Domestic natural

ZHANG SUFEN 0.85% 20430000 0

person

Domestic natural

WANG JINGFENG

person 0.84% 20314300 0

Foreign natural

NAM NGAI 0.83% 20000000 0

person

CHINA MERCHANTS State-owned legal

SECURITIES (HK) LIMITED person 0.81% 19386220 0

BOCOM INTERNATIONAL

Foreign legal person

SECURITIES LIMITED 0.69% 16496000 0

Top 10 unrestricted shareholders

Unrestricted ordinary Shares by class and number

Name of shareholder

shares held Class Shares

OVERSEAS CHINESE TOWN HOLDINGS

COMPANY 523746932 RMB-denominated ordinary share 523746932

CITIC SECURITIES BROKERAGE (HONG

KONG) CO. LTD. 180001110 Domestically listed foreign share 180001110

GUOYUAN SECURITIES BROKER (HK)

CO. LTD. 60130843 Domestically listed foreign share 60130843

HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign share 57289100

HONG KONG SECURITIES CLEARING

24641490 RMB-denominated ordinary share 24641490

COMPANY LTD.ZHANG SUFEN 20430000 RMB-denominated ordinary share 20430000

WANG JINGFENG 20314300 RMB-denominated ordinary share 20314300

NAM NGAI 20000000 Domestically listed foreign share 20000000

CHINA MERCHANTS SECURITIES (HK)

LIMITED 19386220 Domestically listed foreign share 19386220

BOCOM INTERNATIONAL SECURITIES

LIMITED 16496000 Domestically listed foreign share 16496000

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

majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for

short) holds 180001110 and 18360000 ordinary shares in the Company

Related or acting-in-concert parties respectively through CITIC Securities Brokerage (Hong Kong) Co. Ltd. and China

among shareholders above Merchants Securities (HK) Limited. Happy Bloom Investment Limited and Overseas

Chinese Town Holdings Company 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 Wang Jingfeng holds 20000000 A-shares in the Company through his securities

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

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

refinancing shares lending

□ Applicable √ Not applicable

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

lending/return compared with the prior period

□ Applicable √ Not applicable

(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

4Konka Group Co. Ltd. Third Quarterly Report 2024

III Other Significant Events

√ Applicable □ Not applicable

Offering of corporate bonds: The non-public offering of corporate bonds not exceeding RMB2.4

billion for professional investors has been approved by the Company’s shareholders’ general

meeting on 26 September 2024 and the relevant matters are being pushed forward as planned.IV Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.

30 September 2024 Unit: RMB

Item 30 September 2024 1 January 2024

Current assets:

Monetary assets 4002128188.62 6506359577.02

Settlement reserve

Loans to other banks and financial institutions

Held-for-trading financial assets 302697001.89 469636700.78

Derivative financial assets

Notes receivable 463833166.71 533171949.15

Accounts receivable 1644986511.34 1726545973.08

Receivables financing 104820587.75 173396326.14

Prepayments 173344673.53 165454311.51

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 900361063.75 989121067.51

Including: Interest receivable 10026045.96 6681258.01

Dividends receivable 941482.38

Financial assets purchased under resale agreements

Inventories 3025234884.64 3249897700.98

Including: Data resource

Contract assets 2810947.83 2190385.93

Assets held for sale

Current portion of non-current assets

Other current assets 2386021501.78 2359159468.75

Total current assets 13006238527.84 16174933460.85

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 5400358940.21 5566483863.29

Investments in other equity instruments 16114932.00 23841337.16

Other non-current financial assets 1990333131.26 2009676398.00

Investment property 1694910608.86 1470226723.87

Fixed assets 5060171589.54 5218297745.16

Construction in progress 905099016.02 860899498.68

Productive living assets

Oil and gas assets

Right-of-use assets 182391971.20 197054423.17

Intangible assets 1030232577.04 1087386015.34

Including: Data resource

5Konka Group Co. Ltd. Third Quarterly Report 2024

Development costs

Including: Data resource

Goodwill 22196735.11 22196735.11

Long-term prepaid expense 469248742.83 518919223.71

Deferred income tax assets 1442112074.57 1426573982.16

Other non-current assets 1311847670.77 1248328806.16

Total non-current assets 19525017989.41 19649884751.81

Total assets 32531256517.25 35824818212.66

Current liabilities:

Short-term borrowings 5951258924.75 6390592056.27

Borrowings from the central bank

Loans from other banks and financial institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1020570952.92 990482927.20

Accounts payable 2717886964.48 2726831675.97

Advances from customers 413822.62

Contract liabilities 564065934.44 527975160.12

Financial assets sold under repurchase agreements

Customer deposits and deposits from other banks and financial

institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 182744111.78 304733103.63

Taxes and levies payable 87934856.08 214417135.87

Other payables 1768063618.54 1922791905.14

Including: Interest payable

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets held for sale

Current portion of non-current liabilities 5362974274.39 5314147396.36

Other current liabilities 54417867.33 54330715.75

Total current liabilities 17710331327.33 18446302076.31

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 6382175935.75 7779150079.88

Bonds payable 2972763618.49 2426992578.67

Including: Preference shares

Perpetual bonds

Lease liabilities 158068624.66 160218818.92

Long-term payables 5518154.61 6135734.07

Long-term employee benefits payable 4634202.37 4718466.37

Provisions 307335340.91 304519839.80

Deferred income 403592195.30 425135237.90

Deferred income tax liabilities 137684552.95 185026165.27

Other non-current liabilities 205345128.41 179996351.33

Total non-current liabilities 10577117753.45 11471893272.21

Total liabilities 28287449080.78 29918195348.52

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 501575058.97 526499506.76

Less: Treasury stock

Other comprehensive income -11741805.91 -13443558.44

6Konka Group Co. Ltd. Third Quarterly Report 2024

Specific reserve 8606228.09 4657488.24

Surplus reserves 1244180364.24 1244180364.24

General reserve

Retained earnings -107998159.59 1474561975.85

Total equity attributable to owners of the Company as the parent 4042567093.80 5644401184.65

Non-controlling interests 201240342.67 262221679.49

Total owners’ equity 4243807436.47 5906622864.14

Total liabilities and owners’ equity 32531256517.25 35824818212.66

Legal representative: Cao Shiping CFO: Nie Yong Head of the financial department: Ping Heng

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2024 Q1~Q3 2023

1. Revenues 8119982481.56 14876693170.75

Including: Operating revenue 8119982481.56 14876693170.75

Interest income

Insurance premium income

Fee and commission income

2. Costs and expenses 9691080755.04 16519196501.28

Including: Cost of sales 7611182960.89 14318015493.73

Interest expense

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 94216250.62 67933156.53

Selling expense 717269130.66 853292416.89

Administrative expense 485465820.96 562127977.91

R&D expense 312350271.26 356977543.62

Finance costs 470596320.65 360849912.60

Including: Interest expense 607038380.33 650797948.91

Interest income 167646029.32 202850169.71

Add: Other income 80596671.92 176081823.18

Return on investment (“-” for loss) 53009363.00 775916021.84

Including: Share of profit or loss of joint ventures

-66255687.00-51151076.04

and associates

Income from the derecognition of

-2346459.55

financial assets at amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

Gain on changes in fair value (“-” for loss) -172040731.18 -191419983.75

Credit impairment loss (“-” for loss) -162143534.99 -142532702.78

Asset impairment loss (“-” for loss) -110628687.21 -16583397.71

Asset disposal income (“-” for loss) 23233859.57 -15911644.20

3. Operating profit (“-” for loss) -1859071332.37 -1056953213.95

Add: Non-operating income 27060090.72 23007144.67

Less: Non-operating expense 29070862.22 12873372.03

7Konka Group Co. Ltd. Third Quarterly Report 2024

4. Gross profit (“-” for loss) -1861082103.87 -1046819441.31

Less: Income tax expense 4385185.92 -151286064.19

5. Net profit (“-” for net loss) -1865467289.79 -895533377.12

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) -1865467289.79 -895533377.12

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

-1606079930.28-714870927.30

the parent (“-” for net loss)

5.2.2 Net profit attributable to non-controlling interests (“-” for

-259387359.51-180662449.82

net loss)

6. Other comprehensive income net of tax 4005816.95 -3200691.35

Attributable to owners of the Company as the parent 1701752.53 -697499.80

6.1 Items that will not be reclassified to profit or loss

6.1.1 Changes caused by remeasurements on defined benefit

schemes

6.1.2 Other comprehensive income that will not be

reclassified to profit or loss under the equity method

6.1.3 Changes in the fair value of investments in other

equity instruments

6.1.4 Changes in the fair value arising from changes in own

credit risk

6.1.5 Other

6.2 Items that will be reclassified to profit or loss 1701752.53 -697499.80

6.2.1 Other comprehensive income that will be reclassified

-83030.05-209777.61

to profit or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt

investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

1784782.58-487722.19

currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests 2304064.42 -2503191.55

7. Total comprehensive income -1861461472.84 -898734068.47

7.1 Attributable to owners of the Company as the parent -1604378177.75 -715568427.10

7.2 Attributable to non-controlling interests -257083295.09 -183165641.37

8. Earnings per share

8.1 Basic earnings per share -0.6670 -0.2969

8.2 Diluted earnings per share -0.6670 -0.2969

Legal representative: Cao Shiping CFO: Nie Yong Head of the financial department: Ping Heng

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2024 Q1~Q3 2023

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 7012364286.35 14031821909.50

Net increase in customer deposits and deposits from other banks

and financial institutions

Net increase in borrowings from the central bank

Net increase in loans from other financial institutions

Premiums received on original insurance contracts

8Konka Group Co. Ltd. Third Quarterly Report 2024

Net proceeds from reinsurance

Net increase in deposits and investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks and financial institutions

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax and levy rebates 159830576.59 168724402.85

Cash generated from other operating activities 332745670.88 865953981.35

Subtotal of cash generated from operating activities 7504940533.82 15066500293.70

Payments for commodities and services 5579503670.18 12657096771.12

Net increase in loans and advances to customers

Net increase in deposits in the central bank and other banks and

financial institutions

Payments for claims on original insurance contracts

Net increase in loans to other banks and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 1213601518.95 1356531982.05

Taxes and levies paid 337670215.96 361381640.24

Cash used in other operating activities 765132574.30 1013931725.05

Subtotal of cash used in operating activities 7895907979.39 15388942118.46

Net cash generated from/used in operating activities -390967445.57 -322441824.76

2. Cash flows from investing activities:

Proceeds from disinvestment 182730311.90 1120024435.49

Return on investment 33321018.13 105809502.45

Net proceeds from the disposal of fixed assets intangible assets

34677780.836336467.50

and other long-lived assets

Net proceeds from the disposal of subsidiaries and other

18818889.67

business units

Cash generated from other investing activities 20931669.61 568418046.33

Subtotal of cash generated from investing activities 271660780.47 1819407341.44

Payments for the acquisition of fixed assets intangible assets

518815489.211369507381.23

and other long-lived assets

Payments for investments 1400000.00 6000000.00

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other

business units

Cash used in other investing activities 133627401.00 508612408.68

Subtotal of cash used in investing activities 653842890.21 1884119789.91

Net cash generated from/used in investing activities -382182109.74 -64712448.47

3. Cash flows from financing activities:

Capital contributions received 167154054.06 1816216.81

Including: Capital contributions by non-controlling interests to

167154054.061816216.81

subsidiaries

Borrowings received 9951990149.95 7922161074.27

Cash generated from other financing activities 563737565.96 543206827.09

Subtotal of cash generated from financing activities 10682881769.97 8467184118.17

Repayment of borrowings 11294111739.12 6835894584.88

Interest and dividends paid 461309197.03 665357095.47

Including: Dividends paid by subsidiaries to non-controlling

1204628.99735000.00

interests

Cash used in other financing activities 1015905657.89 715175678.04

Subtotal of cash used in financing activities 12771326594.04 8216427358.39

9Konka Group Co. Ltd. Third Quarterly Report 2024

Net cash generated from/used in financing activities -2088444824.07 250756759.78

4. Effect of foreign exchange rates changes on cash and cash

-872112.2237092762.35

equivalents

5. Net increase in cash and cash equivalents -2862466491.60 -99304751.10

Add: Cash and cash equivalents beginning of the period 5674784349.55 5461912010.90

6. Cash and cash equivalents end of the period 2812317857.95 5362607259.80

(II) Adjustments to Financial Statement Items at the Beginning of the Year of the First

Implementation of the New Accounting Standards Implemented since 2024

□ Applicable √ Not applicable

(III) Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent

auditor.□Yes √ No

These financial statements have not been audited by such an auditor.The Board of Directors

Konka Group Co. Ltd

31 October 2024

10