Konka Group Co. Ltd. First Quarterly Report 2023

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2023-29

Bond Code: 114894 133003 Bond Name: 21 Konka 01 21 Konka 02

133040 149987 21 Konka 03 22 Konka 01

133306 133333 22 Konka 03 22 Konka 05

KONKA GROUP CO. LTD.FIRST QUARTERLY REPORT 2023

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

Reason for retrospective restatement:

√ Change of accounting policy □ Correction of accounting error □ Business combination

involving entities under common control □ Other reasons

Q1 2022 YoY change (%)

Q1 2023

Before Restated Restated

Operating revenue (RMB) 4600647851.61 8320135785.93 8320135785.93 -44.70%

Net profit attributable to the listed

152513923.41103900130.02104376396.1946.12%

company’s shareholders (RMB)

1Konka Group Co. Ltd. First Quarterly Report 2023

Net profit attributable to the listed

company’s shareholders before -521453718.40 -418548047.01 -418071780.84 -24.73%

exceptional gains and losses (RMB)

Net cash generated from/used in operating

-1182725927.02-630928798.94-630928798.94-87.46%

activities (RMB)

Basic earnings per share (RMB/share) 0.0633 0.0431 0.0433 46.19%

Diluted earnings per share (RMB/share) 0.0633 0.0431 0.0433 46.19%

Weighted average return on equity (%) 1.98% 1.13% 1.13% 0.85%

31 December 2022 Change (%)

31 March 2023

Before Restated Restated

Total assets (RMB) 38345572552.50 38016368073.05 38027575163.66 0.84%

Equity attributable to the listed company’s

7776570075.057640399721.997641975956.161.76%

shareholders (RMB)

Reason for change of accounting policy and correction of accounting error:

On 30 November 2022 the Ministry of Finance issued the Interpretation No. 16 for the

Accounting Standards for Business Enterprises according to which the provision regarding the

"accounting treatments for deferred income taxes associated with assets and liabilities arisingfrom single transactions that are not subject to the initial recognition exemption” is effective for

the Company from 1 January 2023. For lease liabilities and right-of-use assets recognized at the

beginning of the earliest period for which the provision is first implemented as a result of the

single transactions to which the provision applies if taxable temporary differences and deductible

temporary differences arise the Company adjusts the cumulative effect to opening retained

earnings and other related financial statement items in the earliest period for which the financial

statements are presented in accordance with the aforesaid provision and the Accounting Standard

No. 18 for Business Enterprises—Income Tax.(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q1 2023 Note

Gain/Loss arising from disposal of non-current assets (inclusive of impairment allowance

813719198.23

write-offs)

Government subsidies recognized in the current period except for those acquired in the

ordinary course of business or granted at certain quotas or amounts according to the 47710326.17

government’s unified standards

Gain/Loss on changes in fair value arising from holding of trading financial assets and

liabilities and investment income from disposal of trading financial assets financial

19330883.02

liabilities and available-for-sale financial assets other than effective hedge business related to

the Company’s normal operating businesses

Gain/loss on entrustment loans 29102953.29

Other non-operating income and expense other than the above -730150.95

Less: Income tax effects 228953147.42

Non-controlling interests effects (after tax) 6212420.53

Total 673967641.81

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

□ Applicable √ Not applicable

No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in

2Konka Group Co. Ltd. First Quarterly Report 2023

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 (RMB) Reason

Government grants continuously given in the Company’s ordinary

Tax rebates on software 1173279.11 course of business at fixed quotas or amounts as per the

government’s policies and standards

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

√ Applicable □ Not applicable

Unit: RMB

Change

Item 31 March 2023 1 January 2023 Explanation of why

(%)

Accounts

Expiration of notes receivable for accounts

receivable 130292827.60 237187228.44 -45.07%

receivable financing in the Reporting Period

financing

During the reporting period projects under

Investment construction were converted into investment real

1411935815.98802407844.6075.96%

property estate resulting in an increase in investment real

estate

Employee Payment of employee remunerations in the

164854050.74348608204.05-52.71%

benefits payable Reporting Period

Taxes payable 193156126.51 291102679.36 -33.65% Payment of taxes in the Reporting Period

Current portion Mature bonds payable and the current portion of

of non-current 4447600623.73 409220030.69 986.85% non-current liabilities reclassified from long-term

liabilities borrowings in the Reporting Period

During the reporting period the disposal of part of

Deferred income

261413172.81 99030646.40 163.97% Chutianlong Stock Co. Ltd. to recognize deferred

tax liabilities

income tax liabilities

Change

Item Q1 2023 Q1 2022 Explanation of why

(%)

During the reporting period the company adjusted

Operating and optimized non-core businesses with weak

4600647851.618320135785.93-44.70%

revenue coordination with the main business resulting in a

decline in revenue scale

Income from equity disposal and influence of

Return on

816925419.92 356591250.76 129.09% accounting method changes of Chutian Dragon Co.

investment

Ltd. in the Reporting Period

Net cash

generated During the reporting period the increase in

from/used in -1182725927.02 -630928798.94 -87.46% inventories resulted in the outflow of cash paid for

operating goods and services

activities

Net cash

generated YoY decrease in cash paid for purchasing fixed

from/used in -162066625.49 -587891465.97 72.43% assets intangible assets and other long-term assets

investing in the Reporting Period

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 ordinary shareholders 86514 Number of preference shareholders with resumed voting rights (if any) 0

Top 10 shareholders

Restricted Shares in pledge

Nature of Shareholding Total shares

Name of shareholder shares marked or frozen

shareholder percentage held

held Status Shares

OVERSEAS CHINESE TOWN State-owned legal 21.75% 523746932 0

3Konka Group Co. Ltd. First Quarterly Report 2023

HOLDINGS COMPANY person

CITIC SECURITIES BROKERAGE

Foreign legal person 7.48% 180001110 0

(HONG KONG) CO. LTD.Domestic natural

WANG JINGFENG 4.15% 100000000 0

person

GUOYUAN SECURITIES BROKER

Foreign legal person 2.45% 58927225 0

(HK) CO. LTD.HOLY TIME GROUP LIMITED Foreign legal person 2.38% 57289100 0

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

Foreign natural

NAM NGAI 0.96% 23019800 0

person

CHINA MERCHANTS SECURITIES State-owned legal

0.80%193142200

(HK) LIMITED person

BOCOM INTERNATIONAL

Foreign legal person 0.78% 18896037 0

SECURITIES LIMITED

HONG KONG SECURITIES

Foreign legal person 0.63% 15273088 0

CLEARING COMPANY LTD.Top 10 unrestricted shareholders

Unrestricted Shares by class

Name of shareholder ordinary

shares held Class Shares

OVERSEAS CHINESE TOWN HOLDINGS COMPANY 523746932 RMB-denominated ordinary share 523746932

CITIC SECURITIES BROKERAGE (HONG KONG)

180001110 Domestically listed foreign share 180001110

CO. LTD.WANG JINGFENG 100000000 RMB-denominated ordinary share 100000000

GUOYUAN SECURITIES BROKER (HK) CO. LTD. 58927225 Domestically listed foreign share 58927225

HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign share 57289100

GAOLING FUNDL.P. 52801250 Domestically listed foreign share 52801250

NAM NGAI 23019800 Domestically listed foreign share 23019800

CHINA MERCHANTS SECURITIES (HK) LIMITED 19314220 Domestically listed foreign share 19314220

BOCOM INTERNATIONAL SECURITIES LIMITED 18896037 Domestically listed foreign share 18896037

HONG KONG SECURITIES CLEARING COMPANY

15273088 RMB-denominated ordinary share 15273088

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

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

Related or acting-in-concert holds 180001110 and 18360000 ordinary shares in the Company respectively through

parties among shareholders CITIC Securities Brokerage (Hong Kong) Co. Ltd. and China Merchants Securities (HK)

above 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 shareholders involved in Wang Jingfeng holds 100000000 A-shares in the Company through his securities account

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

4Konka Group Co. Ltd. First Quarterly Report 2023

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

□ Applicable √ Not applicable

III Other Significant Events

√ Applicable □ Not applicable

Corporate bond issue: Currently the public offering of corporate bonds of RMB1.2 billion was

completed on 14 July 2022; as for the non-public offering of corporate bonds of RMB1.8 billion

RMB1.2 billion of corporate bonds have been issued respectively on 8 September 2022 and 18

October 2022. As for the rest of corporate bonds of RMB0.6 billion relevant matters are being

promoted as planned.IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.

31 March 2023

Unit: RMB

Item 31 March 2023 1 January 2023

Current assets:

Monetary assets 5508180261.97 5988095490.71

Settlement reserve

Loans to other banks and financial institutions

Held-for-trading financial assets 974897430.42

Derivative financial assets

Notes receivable 873401368.95 1059737243.54

Accounts receivable 2090153542.40 2036734836.22

Receivables financing 130292827.60 237187228.44

Prepayments 348297818.38 389947652.39

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 1472738008.32 1442124845.58

Including: Interest receivable 4691969.53 3878580.64

Dividends receivable 272999.43

Financial assets purchased under resale agreements

Inventories 4923487671.20 4409767756.22

Contract assets

Assets held for sale

Current portion of non-current assets 12131788.69 14630000.00

Other current assets 2422116387.74 2038841225.83

Total current assets 18755697105.67 17617066278.93

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables 800400.00 800400.00

Long-term equity investments 5830552477.38 6351232955.58

Investments in other equity instruments 23841337.16 23841337.16

Other non-current financial assets 2641451080.77 2639662273.32

Investment property 1411935815.98 802407844.60

Fixed assets 4039964101.20 4114029693.38

5Konka Group Co. Ltd. First Quarterly Report 2023

Construction in progress 1415725086.39 1990361377.07

Productive living assets

Oil and gas assets

Right-of-use assets 38245860.65 50019838.68

Intangible assets 1081992209.96 1116739707.27

Development costs

Goodwill 22196735.11 22196735.11

Long-term prepaid expense 510239917.35 387309503.07

Deferred income tax assets 1279102703.17 1201661841.23

Other non-current assets 1293827721.71 1710245378.26

Total non-current assets 19589875446.83 20410508884.73

Total assets 38345572552.50 38027575163.66

Current liabilities:

Short-term borrowings 7065682875.16 7579559304.97

Borrowings from the central bank

Loans from other banks and financial institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1055892081.93 1054573822.04

Accounts payable 2301879604.84 2659946562.93

Advances from customers 825.69

Contract liabilities 712146964.36 601044358.35

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 164854050.74 348608204.05

Taxes and levies payable 193156126.51 291102679.36

Other payables 1593870928.75 1895711373.34

Including: Interest payable 29627245.69 29590464.00

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets held for sale

Current portion of non-current liabilities 4447600623.73 409220030.69

Other current liabilities 78098011.79 68449783.71

Total current liabilities 17613181267.81 14908216945.13

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 7322406772.41 8906931402.89

Bonds payable 3738967976.95 4792392044.13

Including: Preference shares

Perpetual bonds

Lease liabilities 31784224.41 36586639.16

Long-term payables 7491941.30 7964127.18

Long-term employee benefits payable 4842811.63 4894209.73

Provisions 192586085.71 159395579.55

Deferred income 325256711.48 334844966.31

Deferred income tax liabilities 261413172.81 99030646.40

Other non-current liabilities 311712735.60 314233260.08

Total non-current liabilities 12196462432.30 14656272875.43

Total liabilities 29809643700.11 29564489820.56

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

6Konka Group Co. Ltd. First Quarterly Report 2023

Perpetual bonds

Capital reserves 347813376.32 365247361.05

Less: Treasury stock

Other comprehensive income -15311006.86 -14265181.63

Specific reserve

Surplus reserves 1244180364.24 1244180364.24

General reserve

Retained earnings 3791941933.35 3638868004.50

Total equity attributable to owners of the Company as the parent 7776570075.05 7641975956.16

Non-controlling interests 759358777.34 821109386.94

Total owners’ equity 8535928852.39 8463085343.10

Total liabilities and owners’ equity 38345572552.50 38027575163.66

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng

2. Consolidated Income Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Revenues 4600647851.61 8320135785.93

Including: Operating revenue 4600647851.61 8320135785.93

Interest revenue

Insurance premium income

Fee and commission income

2. Costs and expenses 5278599377.48 8941642023.63

Including: Cost of sales 4451814449.75 8116619145.05

Interest costs

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 23526112.70 24211357.37

Selling expense 249669243.57 285983402.43

Administrative expense 200548687.25 168812302.22

R&D expense 106353742.77 119366703.91

Finance costs 246687141.44 226649112.65

Including: Interest costs 224916477.38 243819799.49

Interest revenue 59467053.77 52821276.29

Add: Other income 40112945.00 201195546.29

Return on investment (“-” for loss) 816925419.92 356591250.76

Including: Share of profit or loss of joint ventures and associates -16602829.69 39261474.65

Income from the derecognition of financial assets at

amortized cost (“-” for loss)

Exchange gain (“-” for loss)

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

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

Credit impairment loss (“-” for loss) -2853517.25 2597264.26

Asset impairment loss (“-” for loss) -706509.70 -1299627.80

Asset disposal income (“-” for loss) -265897.79 6760995.88

3. Operating profit (“-” for loss) 175260914.31 -55660808.31

Add: Non-operating income 10265709.63 9556431.75

Less: Non-operating expense 2437470.87 940039.98

4. Gross profit (“-” for loss) 183089153.07 -47044416.54

Less: Income tax expense 92022318.91 -79188796.00

5. Net profit (“-” for net loss) 91066834.16 32144379.46

5.1 By operating continuity

7Konka Group Co. Ltd. First Quarterly Report 2023

5.1.1 Net profit from continuing operations (“-” for net loss) 91066834.16 32144379.46

5.1.2 Net profit from discontinued operations (“-” for net loss)

5.2 By ownership

5.2.1 Net profit attributable to owners of the Company as the

152513923.41104376396.19

parent

5.2.1 Net profit attributable to non-controlling interests -61447089.25 -72232016.73

6. Other comprehensive income net of tax -305458.61 -1524466.40

Attributable to owners of the Company as the parent -1045825.23 -1067773.17

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 -1045825.23 -1067773.17

6.2.1 Other comprehensive income that will be reclassified 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 currency-

-1045825.23-1067773.17

denominated financial statements

6.2.7 Other

Attributable to non-controlling interests 740366.62 -456693.23

7. Total comprehensive income 90761375.55 30619913.06

Attributable to owners of the Company as the parent 151468098.18 103308623.02

Attributable to non-controlling interests -60706722.63 -72688709.96

8. Earnings per share

8.1 Basic earnings per share 0.0633 0.0433

8.2 Diluted earnings per share 0.0633 0.0433

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Ping Heng

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2023 Q1 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 4577159145.45 8562218536.27

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

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 64819428.29 74729863.58

Cash generated from other operating activities 121196319.41 350880406.46

Subtotal of cash generated from operating activities 4763174893.15 8987828806.31

Payments for commodities and services 4794630422.89 8525783311.94

Net increase in loans and advances to customers

8Konka Group Co. Ltd. First Quarterly Report 2023

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 571153686.19 608845622.58

Taxes and levies paid 186102399.10 87268734.60

Cash used in other operating activities 394014311.99 396859936.13

Subtotal of cash used in operating activities 5945900820.17 9618757605.25

Net cash generated from/used in operating activities -1182725927.02 -630928798.94

2. Cash flows from investing activities:

Proceeds from disinvestment 277786299.25 43513336.72

Return on investment 39420914.22 19721203.55

Net proceeds from the disposal of fixed assets intangible assets

1578239.32723375.00

and other long-lived assets

Net proceeds from the disposal of subsidiaries and other business

18818889.6725434651.84

units

Cash generated from other investing activities 207505754.25 607115559.96

Subtotal of cash generated from investing activities 545110096.71 696508127.07

Payments for the acquisition of fixed assets intangible assets and

363745861.03868492619.15

other long-lived assets

Payments for investments 178342076.16

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other

business units

Cash used in other investing activities 343430861.17 237564897.73

Subtotal of cash used in investing activities 707176722.20 1284399593.04

Net cash generated from/used in investing activities -162066625.49 -587891465.97

3. Cash flows from financing activities:

Capital contributions received 345946.00 35012000.00

Including: Capital contributions by non-controlling interests to

345946.0035012000.00

subsidiaries

Borrowings received 3805114522.05 6063777376.75

Cash generated from other financing activities 54574868.72 42697575.48

Subtotal of cash generated from financing activities 3860035336.77 6141486952.23

Repayment of borrowings 2923642749.55 4923815316.07

Interest and dividends paid 164669602.27 227296185.99

Including: Dividends paid by subsidiaries to non-controlling

interests

Cash used in other financing activities 127611602.55 193931979.72

Subtotal of cash used in financing activities 3215923954.37 5345043481.78

Net cash generated from/used in financing activities 644111382.40 796443470.45

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

-7901003.241805449.90

equivalents

5. Net increase in cash and cash equivalents -708582173.35 -420571344.56

Add: Cash and cash equivalents beginning of the period 5461912010.90 5968347219.03

6. Cash and cash equivalents end of the period 4753329837.55 5547775874.47

(II) 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

28 April 2023

9