Konka Group Co. Ltd. Interim Report 2022
KONKAGROUP CO. LTD.INTERIM REPORT 2022
August 2022
1Konka Group Co. Ltd. Interim Report 2022
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 Guo Zhihua 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 interim 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. Interim Report 2022
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 8
Part III Management Discussion and Analysis..........11
Part IV Corporate Governance.........................24
Part V Environmental and Social Responsibility...... 25
Part VI Significant Events.......................... 35
Part VII Share Changes and Shareholder Information...48
Part VIII Preferred Shares...........................51
Part IX Bonds....................................... 52
Part X Financial Statements..........................54
3Konka Group Co. Ltd. Interim Report 2022
Documents Available for Reference
(I) The financial statements with the signatures and seals of the Company’s legal representative
Chief Financial Officer and head of the financial department;
(II) The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period; and
(III) The documents above are available at the Secretariat of the Board.
4Konka Group Co. Ltd. Interim Report 2022
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 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.Youzhihui Shenzhen Youzhihui Technology 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.Xi'an Huasheng Xi'an Huasheng Jiacheng Real Estate Co. Ltd.XingDa HongYe GuangDong XingDa HongYe Electronic Co. Ltd.Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB 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 Factoring Konka Factoring (Shenzhen) Co. Ltd.Beijing Konka Electronic Beijing Konka Electronic Co. Ltd.Konka Leasing Konka Financial Leasing (Tianjin) 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.
5Konka Group Co. Ltd. Interim Report 2022
Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co. Ltd.Sichuan Konka Sichuan Konka Smart Terminal Technology Co. Ltd
Yibin Smart Yibin Konka Smart Technology Co. Ltd.Shenzhen KONSEMI Shenzhen KONSEMI Co. Ltd.Chongqing Konka Chongqing Konka Technology Development Co. Ltd.Hefei KONSEMI Hefei KONSEMI Storage Technology Co. Ltd.Yihe Electronic Hefei Yihe Electronic 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.Industrial and Trade Technology Konka Industrial and Trade Technology (Shenzhen) 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 Research
Institute Chongqing Konka Optoelectronic Technology Research Institute 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.Shaanxi Konka Intelligent Shaanxi 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.Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling 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.Yantai Laikang Yantai Laikang Industrial Development Co. Ltd.
6Konka Group Co. Ltd. Interim Report 2022
Konka Material Hainan Konka Material 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.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 Memory Technologies
(Shenzhen) Chain Kingdom Memory Technologies (Shenzhen) Co. Limited
Hongjet Hongjet (Hong Kong) Company Limited
Xi'an Feihe Xi'an Feihe Real Estate Development Co. Ltd.Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co. Ltd.Jiangxi Konka Industrial Park Jiangxi Konka Industrial Park Development Co. Ltd.Ruichang Kangrui Real Estate Ruichang Kangrui Real Estate Co. Ltd.Industrial development in Wuhan Konka Industrial Development (Wuhan) Co. Ltd.Kangxiaojia Digital Shenzhen Kangxiaojia Digital Information Technology Co. Ltd.Yijiakang Smart Terminal Shenzhen Yijiakang Smart Terminal Technology Co. Ltd.Guizhou Kangkai Material Technology Guizhou Kangkai Material Technology Co. Ltd.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.Kangxinrun Renewable Resources Chongqing Kangxingrui Renewable Resources Co. Ltd.Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co. Ltd.Sichun Chengrui Sichuan Chengrui Real Estate Co. Ltd.Chongqing Jiarun Chongqing Jiarun Real Estate Co. Ltd.Nantong Kanghai Nantong Kanghai Technology Industry Development Co. Ltd.Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co. Ltd.Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
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 Electronic Technology Co. Ltd.Zhejiang Konka Technology Industry Zhejiang Konka Technology Industry Development Co. Ltd.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
7Konka Group Co. Ltd. Interim Report 2022
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Konka Group-A Konka Group-B Stock code 000016 200016
Changed 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. (if any) 康佳集团
Company name in English (if any) KONKA GROUP CO.LTD
Abbr. (if any) KONKA GROUP
Legal representative Zhou Bin
II Contact Information
Board Secretary Securities Representative
Name Wu Yongjun Miao Leiqiang
Board Secretariat 24/F Konka R&D Center 28 Keji Board Secretariat 24/F Konka R&D Center 28 Keji
Address South Twelfth Road Science and Technology Park South Twelfth Road Science and Technology ParkYuehai Street Nanshan District Shenzhen Guangdong Yuehai Street Nanshan District Shenzhen Guangdong
Province China Province China
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
address szkonka@konka.com szkonka@konka.com
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address office address and
their zip codes website address and email address of the Company in the Reporting Period.□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period which can be found in the 2021
Annual Report.
2. Media for Information Disclosure and Place where this Report is Lodged
Indicate by tick mark whether any change occurred to the information disclosure media and the
place for lodging the Company’s periodic reports in the Reporting Period.□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure the website designated by
the CSRC for disclosing the Company’s periodic reports and the place for lodging such reports did
not change in the Reporting Period. The said information can be found in the 2021 Annual Report.
8Konka Group Co. Ltd. Interim Report 2022
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.□ Applicable √ Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
H1 2022 H1 2021 Change (%)
Operating revenue (RMB) 16895470276.81 21810161873.08 -22.53%
Net profit attributable to the listed company’s shareholders
(RMB) 172818438.83 85449919.57 102.25%
Net profit attributable to the listed company’s shareholders before
exceptional gains and losses (RMB) -742356181.71 -710124637.85 -4.54%
Net cash generated from/used in operating activities (RMB) -421259506.73 -1284761222.03 67.21%
Basic earnings per share (RMB/share) 0.0718 0.0355 102.25%
Diluted earnings per share (RMB/share) 0.0718 0.0355 102.25%
Weighted average return on equity (%) 1.87% 1.01% 0.86%
30 June 2022 31 December 2021 Change (%)
Total assets (RMB) 39312730372.55 39874520771.26 -1.41%
Equity attributable to the listed company’s shareholders (RMB) 9283431087.04 9095278436.41 2.07%
V 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 such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□Applicable √ Not applicable
No such differences for the Reporting Period.VI Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 657751392.73
Government subsidies through 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 335987367.04
policies or standards)
Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & income from
disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets 32966971.77
9Konka Group Co. Ltd. Interim Report 2022
(exclusive of the effective portion of hedges that arise in the Company’s ordinary course of
business)
Gain or loss on loan entrustments 54416927.25
Non-operating income and expense other than the above 26896814.20
Less: Income tax effects 135264660.61
Non-controlling interests effects (net of tax) 57580191.84
Total 915174620.54
Particulars about other gains and losses 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 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 7949955.87 Government subsidies given in the Company’s ordinary course of business at fixedon software quotas or amounts as per government’s uniform standards
10Konka Group Co. Ltd. Interim Report 2022
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
At present the core businesses of the Company include consumer electronics industry trade
semiconductors environmental protection etc. Among them for the industry trade business the
Company carries out the procurement processing and distribution of related materials around the
upstream and downstream of the consumer electronics business thus it can be categorized to the
consumer electronics industry or semiconductor business. Therefore the industries in which the
Company operates during the Reporting Period are consumer electronics industry semiconductor
industry and environmental protection industry. The relevant information is as follows:
(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.In the first half of 2022 affected by factors such as increasingly fierce market competition
fluctuating raw material price and sluggish scale growth under the impact of the COVID-19
pandemic the gross profit level of the color TV industry continued to be diluted. According to
statistics from All View Cloud (AVC for short) the omni-channel retail sales volume in China's
color TV market was 16.72 million units in the first half of 2022 declining by 6.2% year-on-year
and the retail sales value was RMB53.1 billion decreasing by 10.5% year-on-year. With the
intelligent upgrade of electronic products and iterative update of display technologies the color TV
industry is expected to enter the stage of upgrade guided by science and technology and the market
scale of the industry is expected to grow.
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.
11Konka Group Co. Ltd. Interim Report 2022
And the Company profits from the margins between the costs and the selling prices of its white
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.In terms of the air-conditioning industry statistics from AVC show that the omni-channel retail sales
volume of China's air-conditioning market was 21.54 million units in the first half of 2022
decreasing by 20.9% year-on-year and the retail sales value was RMB72.7 billion decreasing by
15.3% year-on-year. With the industrial upgrade driven by relevant policies and the recovery of
consumer demand for trade-in the air-conditioning industry is expected to maintain a steady growth
trend in the future. In terms of the refrigerator industry statistics from AVC show that the omni-
channel retail sales volume of China's refrigerator market was 15.07 million units in the first half of
2022 decreasing by 5.5% year-on-year and the retail sales value was RMB45.6 billion decreasing
by 3.4% year-on-year. As people become increasingly concerned about health and food preservation
and the upgrade trend of life quality is continuously advanced steady development and product
upgrade will become the main characteristics of the refrigerator market in the future and health
function aesthetic appearance and differentiated door body will become the new premium direction
of refrigerator products. In terms of the refrigerator industry statistics from AVC show that the
omni-channel retail sales volume of China's refrigerator market was 15279000 units in the first
half of 2022 decreasing by 9.2% year-on-year and the retail sales value was RMB30.9 billion
decreasing by 10.1% year-on-year. The downturn in the offline market affected the overall market
performance of the washing machine industry. However with the rise of new media channels and
the improvement of enterprise cost pressure the high-end trend of the washing machine market
remained unchanged and the market is expected to maintain a stable development trend in the
future.(II) The industry trade business
The Company's industry trade business mainly focuses on the procurement processing and
distribution of IC chip storage LCD and other materials involved in the company's traditional main
business. The operating profit comes from the processing fee and the price difference between
upstream procurement and downstream sales. The industry trade business can help the Company
12Konka Group Co. Ltd. Interim Report 2022
establish good relationships with its upstream suppliers and downstream customers and keep it
informed of prices of the materials used in its production for better cost control over its existing
products. Additionally it 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 semiconductor business
Currently the Company is engaged in storage optoelectronics etc. with respect to the semi-
conductor business. In storage the Company primarily engages in packaging and testing of storage
products. In optoelectronics the Company primarily develops Micro LED-related products.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.(IV) The environmental protection business
Currently this business focuses on recycling of renewable resources. Renewable resources are
collected sorted processed distributed and sold.With the introduction of a series of favorable policies to encourage the recycling and utilization of
renewable resources and the continuous enhancement of environmental protection supervision the
total amount and the total value of recycled resources in China have shown rapid growth. It is
expected that the industry will continue to develop to a good prospect in the future and the
development scale of the renewable resource recycling industry will continue to grow steadily.II Core Competitiveness Analysis
The Company’s core competitiveness lies in its R&D ability brand marketing network and humanresources. It has developed an R&D system of “Konka Research Institute-secondary Group/divisionresearch centers-technology application 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 project of micro LED. In terms of brand the
Company continues to 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-
13Konka Group Co. Ltd. Interim Report 2022
win results and strives for development at home and abroad. Regarding offline channels the
Company has 14 branches more than 150 offices more than 8000 sales outlets 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 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.III Analysis of Main Businesses
(I) Overview
In the Reporting Period the Company adhered to the development strategy of "Technology +
Business + Industrial Parks" and focused on the three core businesses of "New Consumer
Electronics + Semiconductor + New Energy Technology" and the two supporting businesses of
“Industrial Parks + Investment” so as to promote the concentrated steady and high-quality
development of the Company.In order to continuously strengthen its competitiveness the Company kept consolidating the three-
level R&D system of "research institute - key laboratory - product R&D center" and continuously
strengthened R&D investment through independent innovation external cooperation and
technology introduction. In terms of the multimedia business the Key Technology of Intelligent
Terminal Integrating Information Equipment and Synergetic Interconnection of Beacon declared by
the Company won the second prize of Guangdong Science and Technology Progress Award;
APHAEA A6 Pro a newly launched intelligent scenario screen supports free screen splice in
multiple proportions and a variety of control methods well satisfying the needs of users for cross-
ecological scenarios. In terms of the white goods business the Control Methods for Temperature
Rectification of Air-cooled Refrigerator and the A Noise Control Method for Refrigerator Using
Frequency Conversion Compressor won the Science and Technology Achievement Award of Henan
Province; the newly developed air-cooled -86°C cryorefrigerator for civil use opened up the market
space of the Company's ultra-low temperature refrigeration products in such fields as medical
treatment military industry scientific research and transportation. In terms of the semiconductor
business the Company is actively promoting industrialization. By now the Company has built a
whole-process mass production line for Micro LED and the Micro LED chip has begun to enter the
stage of mass production and Mini LED is ready for mass production. Additionally Yancheng
Semiconductor Assembly & Test Base has achieved batch shipment.In the Reporting Period the white goods business of the Company achieved countertrend growth in
14Konka Group Co. Ltd. Interim Report 2022
income scale through "Konka + Frestec" dual-brand operation and "refrigerators + washing
machines + air conditioners + freezers + kitchen appliances" full-category layout. Affected by
factors such as declining market demand fluctuating raw material price and fierce market
competition the profitability of the Company's multimedia business decreased.(II) Year-on-year changes in key financial data:
Unit: RMB
H1 2022 H1 2021 Change (%) Main reason for change
Operating revenue 16895470276.81 21810161873.08 -22.53%
Cost of sales 16482440621.84 20817175713.78 -20.82%
Selling expense 560225684.28 667662036.47 -16.09%
Administrative expense 354308684.51 359053667.07 -1.32%
Finance costs 267115327.58 459415782.71 -41.86% Increased exchange gains
Income tax expense -88858864.36 84263268.37 -205.45%
R&D investments 241660483.14 284663467.26 -15.11%
Econ Technology has been
Net cash generated from/used in excluded from the
operating activities -421259506.73 -1284761222.03 67.21% consolidated financialstatements in the current
period
Net cash generated from/used in Increased cash flows from
investing activities 114321239.48 -1785387038.28 106.40% disinvestment
Issue of RMB1.5 billion of
Net cash generated from/used in corporate bonds in the same
financing activities 212673169.75 3939565440.45 -94.60% period of last year with nosuch event in the current
period
Net increase in cash and cash
equivalents -64827416.56 861929112.82 -107.52%
Decreased continuing
Other income 343737322.91 720696356.02 -52.30% government grants that were
through profit or loss
Return on investment 737803536.05 322244312.89 128.96% Increased income from equitytransfer
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes.(III) Breakdown of operating revenue:
Unit: RMB
H1 2022 H1 2021
Operating revenue As % of totaloperating revenue (%) Operating revenue
As % of total Change (%)
operating revenue (%)
Total 16895470276.81 100% 21810161873.08 100% -22.53%
By operating division
Consumer electronics 5246599004.00 31.06% 6262070661.11 28.71% -16.22%
Industry trade 10171407159.62 60.20% 12184495984.54 55.87% -16.52%
Environmental business 774458509.72 4.58% 2724186133.96 12.49% -71.57%
Semiconductor 50916083.90 0.30% 241973760.06 1.11% -78.96%
Other 652089519.57 3.86% 397435333.41 1.82% 64.07%
By product category
Color TVs 2389828778.20 14.15% 3190601881.06 14.63% -25.10%
White goods 1900207771.57 11.25% 1752194252.46 8.03% 8.45%
Industry trade 10171407159.62 60.20% 12184495984.54 55.87% -16.52%
Environmental business 774458509.72 4.58% 2724186133.96 12.49% -71.57%
Semiconductor 50916083.90 0.30% 241973760.06 1.11% -78.96%
PCB 291397810.91 1.72% 365622811.21 1.68% -20.30%
Other 1317254162.89 7.80% 1351087049.79 6.19% -2.50%
By operating segment
Overseas 7238742630.40 42.84% 11317853852.95 51.89% -36.04%
15Konka Group Co. Ltd. Interim Report 2022
Domestic 9656727646.41 57.16% 10492308020.13 48.11% -7.96%
Operating division product category or operating segment contributing over 10% of operating
revenue or operating profit:
√ Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in
Operating revenue Cost of sales profit operating revenue YoY change in gross profit margin
margin (%) cost of sales (%) (%)
By operating division
Consumer electronics 5246599004.00 5090787997.35 2.97% -16.22% -11.65% -5.01%
Industry trade 10171407159.62 10120679704.92 0.50% -16.52% -16.21% -0.37%
Environmental
business 774458509.72 749206296.93 3.26% -71.57% -69.29% -7.19%
By product category
Color TVs 2389828778.20 2418706246.97 -1.21% -25.10% -19.84% -6.64%
White goods 1900207771.57 1711652138.98 9.92% 8.45% 6.41% 1.72%
Environmental
business 774458509.72 749206296.93 3.26% -71.57% -69.29% -7.19%
Industry trade 10171407159.62 10120679704.92 0.50% -16.52% -16.21% -0.37%
By operating segment
Domestic 9656727646.41 9310722854.10 3.58% -7.96% -3.65% -4.32%
Overseas 7238742630.40 7171717767.74 0.93% -36.04% -35.70% -0.53%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□ Applicable √ Not applicable
Any over 30% YoYmovements in the data above and why:
√ Applicable □ Not applicable
The change in revenue of the environmental business was primarily driven by adjustments to the
structure of the environmental business.The change in revenue of the semi-conductor business was primarily driven by a slowdown in
demand for consumer electronics due to the COVID-19 pandemic.The change in overseas revenue was primarily driven by the decreased purchases by overseas
customers.IV Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Source/Reason Recurrent or not
Return on investment 737803536.05 -2391.15% Transfer of equity investments incertain subsidiaries in the period Not recurrent
Gain/loss on changes in
fair value -638799.36 2.07% Not recurrent
Asset impairments -91918302.31 297.90% Impairment losses on receivablesand inventories Not recurrent
Mainly for the company's daily
Non-operating income 30492741.65 -98.82% business activities are not directly Not recurrent
related to the increase in profits
Non-operating expense 3860945.80 -12.51% Not recurrent
16Konka Group Co. Ltd. Interim Report 2022
V Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2022 31 December 2021 Change in Reason
Amount As % of Amount As % of total percentag
for
total assets assets e (%) materialchange
Monetary assets 6534638395.86 16.62% 6489553211.24 16.27% 0.35%
Accounts receivable 3372628831.51 8.58% 3397729481.07 8.52% 0.06%
Inventories 4018041845.92 10.22% 4068537809.18 10.20% 0.02%
Investment property 774860887.71 1.97% 776525061.54 1.95% 0.02%
Long-term equity
investments 6273716368.75 15.96% 5902588939.51 14.80% 1.16%
Fixed assets 3960662993.10 10.07% 4010295277.14 10.06% 0.01%
Construction in
progress 1781601493.64 4.53% 1490777831.39 3.74% 0.79%
Right-of-use assets 69287135.98 0.18% 71210415.37 0.18% 0.00%
Short-term
borrowings 10090194886.59 25.67% 9920675121.08 24.88% 0.79%
Contract liabilities 711366769.35 1.81% 652910408.02 1.64% 0.17%
Long-term
borrowings 8245446057.26 20.97% 3529140539.09 8.85% 12.12%
Lease liabilities 51616953.84 0.13% 42532869.63 0.11% 0.02%
2. Major Assets Overseas
□Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Cumul
Gain/loss on ative
Impair Ot
fair-value fair-
ment
value allowa Purchased in
he
Beginning changes in Sold in the rItem amount the change
nce the Ending
s for the Reporting
Reporting ch
Period an amountReporting Repor Period
Period charge ged to ting s
equity Period
Financial assets
4. Investments
in other equity 23841337.16 23841337.16
instruments
Subtotal of
financial assets 23841337.16 23841337.16
Other 2364852292.22 -26700574.54 248874549.86 117004025.26 2470022242.28
Total of the
above 2388693629.38
-
26700574.54248874549.86117004025.262493863579.44
Financial
liabilities 0 0
Other changes
Unit: RMB
Gain/loss on Impairme
Beginning fair-value Cumulative fair- nt Purchased in
Oth
Item amount changes in value changes allowanc the Reporting
Sold in the er Ending amount
the Reporting charged to equity e for the Period Reporting Period chan
Period Reporting ges
17Konka Group Co. Ltd. Interim Report 2022
Period
Other non-current
financial assets 2293361603.68 -26700574.54 238947826.06 45513336.72 2460095518.48
Receivables
financing 71490688.54 9926723.80 71490688.54 9926723.80
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
4. Restricted Asset Rights as at the Period-End
Item Ending carryingvalue (RMB) Reason for restriction
Of which RMB571737827.06 was margin deposit pledged for borrowings or issuing
631118593.39bank acceptance bills; RMB10764266.54 was financial supervision account funds;Monetary assets RMB19800000.00 was fixed-term deposit that cannot be withdrawn in advance;
RMB28816499.79 was restricted for other reasons
Notes receivable 373073971.78As pledge for notes issuing
Investment property 106335030.70As collateral for loan
Fixed assets 1198081326.15As collateral for loan and finance lease
Construction in
progress 78521756.73As collateral for finance lease
Intangible assets 376579273.20As collateral for loan and former shareholder guarantee
Total 2763709951.95
VI Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in the Total investment amount in the same
Reporting Period (RMB) period of last year (RMB) Change
2650070931.192768943435.03-4.29%
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
Input Accumulat Est
Reason
Inves im Accumulat for not
tmen Fixed Indust amount ive actual Capit Pr ate ive meetingassets ry in the input al og realized the Disclosure DisclosurItem t
meth investme involv Reporti amount as resou re
d
rev revenues schedule
date (if e index (if
nt or not ed ng of the rces ss as of the and any) any)od Period period-end enues period-end expectedrevenues
Dongguan Electr
Konka Self- onic Self- 2017-03-
Intelligent build Yes indust 95666 4435848 funde N/A523.68 23.68 d 11Industrial Park ry
Suining Konka Electr
Electronic Self- onic Self- 2018-10-
Technology build Yes indust 93540 4266028 funde N/A 17
Industrial Park ry 707.10 00.00 d http://ww
Chongqing w.cninfo.c
Konka Electr Self- om.cn/ne
Semiconductor Self- Yes onic 112779 2019-06- w/index
Photoelectric build indust 838.51
3977286 funde N/A
16.87 d 14
Industrial Park ry
Konka
Intelligent Electr
Terminal Self- Yes onic 121099
Self-
4104430 funde N/A 2020-06-
Manufacturing build indust .00 6.45 d 06
Base for Export ry
18Konka Group Co. Ltd. Interim Report 2022
Frestec Electr Self-
Refrigeration Self- Yes onicbuild indust 35375 1445478 funde N/A
2020-07-
Park ry 318.93 00.00 d
21
Xi’an Konka
Smart Electr Self-
Appliances Self- onic 2021-02-
Headquarters build
Yes indust 10266 1517823 funde N/A
ry 565.00 39.75 d
10
Project
Total -- -- -- 347750 1605290052.22 686.75 -- -- -- -- --
Note: Construction is ongoing for Regarding Dongguan Konka Intelligent Industrial Park
Chongqing Konka Semiconductor Photoelectric Industrial Park Suining Konka Electronic
Technology Industrial Park Konka Intelligent Terminal Manufacturing Base for Export Frestec
Refrigeration Park and Xi’an Konka Smart Appliances Headquarters Project.
4. Financial Investments
(1) Securities Investments
□Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Investments in Derivative Financial Instruments
□Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of Raised Funds
√ Applicable □ Not applicable
(1) General Information about Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0000
Cumulat
Used Re- ive re-
Purpose Amount
Year Total in the Cumula purposed Cumulat purposed
and being
of Way of raising amount Curre tively amount ive re- amount Unused
whereab
outs of idle forraisin raised nt used in the purposed as % of amount moreg Period Reportin amount total
the
g Period amount unused
than two
raised amount
years
Public offering
2022 of corporate 120000 0 120000 0 0 0.00% 0 0
bonds
Total -- 120000 0 120000 0 0 0.00% 0 -- 0
More information
The bonds offering was completed on 14 July 2022. As of the date of this Report’s being authorized for issue the raised funds
have been used up. The Company used raised funds in strict compliance with the stated purposes in the prospectus and the special
account for raised funds was running well.
(2) Promised Use of Raised Funds
□Applicable √ Not applicable
(3) Re-purposed Raised Funds
□Applicable √ Not applicable
No such cases in the Reporting Period.
19Konka Group Co. Ltd. Interim Report 2022
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
√ Applicable □ Not applicable
Amoun
t Amoun
contrib t
uted by contrib
the uted by
equity the sale Relati
interest to net onshi
s to net Effect income p Owner Executed as Index
Equity Selling income of the of the Prici
Relate betwe ship scheduled or to
Counte Date of price of the sale on Compa ng d-party en Disclos
rparty interest sale (RMB’ Compa the ny as a prin transac count
fully not if not ure disclos
s sold 0000) ny Compa percent ciple tion or erpart
transfe state reason
rred or and actions date
ed
inform
from ny age of not y and
period- the the
not taken ation
beginni Compa Comp
ng to ny’s any
date of net
sale income
(RMB’ (%)
0000)
100%
owners Optimi
Xi'an zing
hip of the
Port Compa http://wXi'an
Industri ny’s ww.cni
Huashe
al 27 June 2133.4 allocati 59.76%
ng 22000 6 on of
Valu 21 May nfo.coNo No Yes N/A
Invest 2022
Jiachen assets
ation 2022 m.cn/n
ment increasi ew/ind
g Real ng
Co.Estate capital
ex
Ltd. liquidit
Co. y
Ltd.VIII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net
profit:
Unit: RMB
Relationship Principal
Name with the activity Registeredcapital Total assets Net assets
Operating Operating
Company revenue profit
Net profit
Konka Enterprise
Ventures management
Development RMB50000Subsidiary consulting 223578126. 120200716. 31161190.4 62703273.4 55537960.5
(Shenzhen) and 00 84 08 1 2 6
Co. Ltd. incubationservices
Hong Kong Export &
Konka Co. Subsidiary import of HKD500000 255186287 380991707. 127661609 40502683.0 33125698.9
Ltd. electronics 1.39 39 9.80 2 4
Shenzhen
Wankaida Software
Science and Subsidiary design and RMB10000 125390065. 124169421. 10142561.5
Technology technology 000 33 47
6079320.0099447716.69
Co. Ltd. development
Chain
Kingdom Subsidiary
Export & USD487625 115167628 141764411. 333734801
import of 5.39 4.94 64 3.59 1068238.30 899361.51
20Konka Group Co. Ltd. Interim Report 2022
Memory electronics
Technologies
Co. Limited
Shenzhen
Konka Manufacturin
Electronics Subsidiary g and RMB10000 677323754 139699961. 172335991 54664140.0 48210215.1
Technology marketing of 00000 1.98 20 6.71 3 9
Co. Ltd. electronics
Shenzhen
Konka Manufacturin
Telecommuni
cations Subsidiary
g and RMB480000 119785061 261018865. 104139361.marketing of 000 1.34 93 50 7873162.26 7873162.26
Technology electronics
Co. Ltd.Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was Effects on overall
Subsidiary obtained or disposed in the operations and operating
Reporting Period performance
Guizhou Konka New Energy Material Technology Co. Ltd. Newly incorporated
Jiangxi Konka High-tech Park Operation and Management Co. Ltd. Newly incorporated Beneficial to the
Shangrao Konka Electronic Technology Innovation Co. Ltd. Newly incorporated development of theCompany’s relevant
Zhejiang Konka Electronic Technology Co. Ltd. Newly incorporated business
Zhejiang Konka Technology Industry Development Co. Ltd. Newly incorporated
Jiangxi Konka Industrial Park Development Co. Ltd. De-registered
Shanghai Xinfeng Zhuoqun PCB Co. Ltd. De-registered For better allocation ofassets
Ruichang Kangrui Real Estate Co. Ltd. De-registered
Sichuan Chengrui Real Estate Co. Ltd. Equity transfer
Chongqing Jiarun Real Estate Co. Ltd. Equity transfer Beneficial to the
Xi'an Huasheng Jiacheng Real Estate Co. Ltd. Equity transfer development of the
Xi'an Feihe Real Estate Development Co. Ltd. Equity transfer Company’s relevant
Konka Industrial Development (Wuhan) Co. Ltd. Equity transfer business and bring about
Hefei KONSEMI Storage Technology Co. Ltd. Capital increase a certain amount of gains
Hefei Yihe Electronic Co. Ltd. Capital increase
Information about principal subsidiaries and joint stock companies:
None
IX Structured Bodies Controlled by the Company
□Applicable √ Not applicable
X Risks Facing the Company and Countermeasures
In regard to the consumer electronics business the COVID-19 pandemic led to tight supply of
energy and bulk commodities partially stalled logistics and commodity trading sluggish consumer
demand and increasingly fierce market competition due to which the Company's operating results
in the consumer electronics business fell somewhat. In regard to the color TV business the
Company will promote the upgrade of the color TV business and improve the profitability thereof
through the following measures: First build technical barriers. The Company will make use of the
advantages of the Micro LED business to extend to the upstream of the business so as to form the
advantages of advanced manufacturing and precision manufacturing and drive the upgrade of the
color TV business with the improvement of technical efficiency as the core. Second consolidate
high-end manufacturing. The company will give full play to its manufacturing advantages
consolidate high-end manufacturing and actively integrate into the third-party ecological chain. In
21Konka Group Co. Ltd. Interim Report 2022
the short run the Company will focus on key components centering around the advantages of
intelligent manufacturing; in the long run it will build an intelligent manufacturing platform based
on scientific and technological R&D high-end manufacturing and supply chain so as to incubate
diversified intelligent hardware businesses. Third restructure efficient channels. The Company will
shift to efficient channels arrange "online + offline" high-margin channels master the trend of
consumption classification strengthen band construction towards young consumers continue to
promote the deep integration of online and offline operation and improve the efficiency of both
operation and channel. Fourth expand segmented markets. The Company will explore barrier-based
segmented markets centering around such technologies as 5G AI-based IoT and 8K and in
combination with user portrait expand the application opportunities of multiple scenarios such as
HD screen and smart screen and differentiate the layout of smart terminals such as smart health
care smart medical treatment and smart community. In terms of the white goods business the
Company will take the following measures to accelerate the scale growth of white goods and build a
new growth pole for the consumer electronics business: First promote brand upgrade. The
Company is promoting the diversified development of brands through the "Konka + Frestec" dual-
brand operation strategy in an effort to build the first-class brand image of refrigerators
comprehensively improve the brand operation capability of air-conditioners and washing machines
and through the synergetic development of the two brands of Konka and Frestec expand the
Company's industrial scale in the field of white goods. Second ensure diversified category layout.The company will with the three core product lines of "washing machine + refrigerator + air-
conditioner" as the core explore the diversified layout of categories strengthen the exploration of
new areas such as household appliances/kitchen appliances and taking Frestec as a breakthrough
point realize the diversified layout of white goods categories strengthen the R&D of household
appliances categories and actively explore the new direction for integrated development of
household appliances categories. Third create high-end products. The Company will promote the
strategy of high-end products and centering around the improvement of structure and the
enhancement of R&D capability for high-end products accelerate the construction of medium- and
high-end product lines improve export product lines and strive to promote the comprehensive
upgrade of the quality and high-end orientation of products. Fourth expand international market.The company will intensify efforts on the layout of international market adopt targeted layout
strategies in combination with the characteristics of overseas market further improve both domestic
and foreign marketing systems strengthen the layout of domestic blank market and international
market and maximize the efficiency of channels.The semiconductor business is featured by large R&D investment and uncertain R&D results. In
view of this the company will focus on such technologies as Micro LED chip miniaturization and
massive transfer accelerate the industrialization of four optoelectronic technology projects namely
22Konka Group Co. Ltd. Interim Report 2022
Mini backlight Mini direct display Mini chip and Micro chip and achieve technological
commercialization and output as soon as possible.
23Konka Group Co. Ltd. Interim Report 2022
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participatio Date of the meeting Date of disclosure Resolutions of the meeting
n ratio
The First Extraordinary Extraordinary 24.2123% 22 March 2022 23 March 2022 Resolutions of the First ExtraordinaryGeneral Meeting of 2022 General Meeting of 2022
The 2021 Annual General Periodic 24.1901% 25 April 2022 26 April 2022 Resolutions of the 2021 AnnualMeeting General Meeting
The Second Extraordinary Resolutions of the Second
General Meeting of 2022 Extraordinary 24.4254% 16 May 2022 17 May 2022 Extraordinary General Meeting of2022
The Third Extraordinary Resolutions of the Third
General Meeting of 2022 Extraordinary 24.4426% 27 June 2022 28 June 2022 Extraordinary General Meeting of2022
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with
Resumed Voting Rights
□Applicable √ Not applicable
II Change of Directors Supervisors and Senior Management
√ Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Sun Qingyan Vice President Dismissed 28 February 2022 Resigned for change of job
Li Zheng Director Retired 28 February 2022 Resigned for job arrangement
Ye Xingbin Director Elected 21 March 2022 Elected as director by the general meeting
Lin Hongfan Vice President Appointed 1 June 2022 Appointed by the Board of Directors
III Interim Dividend Plan
□Applicable √ Not applicable
The Company has no interim dividend plan either in the form of cash or stock.IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□Applicable √ Not applicable
No such cases in the Reporting Period.
24Konka Group Co. Ltd. Interim Report 2022
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
Num
Nam Way berof Distributio Total Excee of Name of major of disch n of Discharge standards Approved total ssivepollu pollutants discha arge discharge
Discharge concentration implemented discharge discharge dischter rge outle outlets arge
ts
Pollution sources Total
of waste water: PH 6-9; total disch Total discharge
PH total copper Disch copper≤0.3mg/L; arge of major
COD arge COD≤50mg/L; ammonia of pollutants: COD
Xing ammonia nitrogen of
Main nitrogen≤8mg/L; total wast 19.061250
total nitrogen statio discharge nitrogen≤15mg/L; total GB 21900-2008 e tons/year;Da
Hong total phosphorus nary 1
outlet of phosphorus≤0.5mg/L; Discharge Standard water ammonia nitroge
total cyanide pollut the waste total cyanide≤0.2mg/L; For Pollutants From : n 3.0498
None
Ye total nickel total ion water total nickel≤0.1mg/L; Electroplating 4978 tons/year; total
iron total sourc station total iron≤2mg/L; total 35 nitrogen 32.9792
aluminum es aluminum≤2mg/L; thous tons/year; total
petroleum petroleum≤2mg/L; and phosphorus
suspended solids suspended solids≤30mg/L tons/ 0.2082 tons/yearyear
Emission Standard
for Electroplating Total discharge:
Pollutants 2986560000
waste gas GB21900-2008 Air standard
pollutants: sulfuric acid Emission Limits cube/year (note:
sulfuric acid fume≤30mg/m3; nitrogen Table 5 Emission the total
fume hydrogen Disch Three on oxide≤200mg/m3; standard of Volatile discharge is not
chloride arge the roof of hydrogen Organic 2986 stated in the
Xing formaldehyde of plant 1 chloride≤30mg/m3; Compounds for 560 latest version of
Da hydrogen statio ten on the hydrogen Printing Industry 000 national
Hong cyanide nitrogen nary 14 roof of cyanide≤0.5mg/m3; DB44/815-2010; stand discharge permit None
Ye oxide ammonia pollut plant 2 and TVOC≤90mg/m3; Guangdong Air ard in 2021; two
benzene ion one on the benzene≤1mg/m3; Pollutant Emission cube/ exhaust towers
toluene+xylene sourc roof of the toluene+xylene≤15mg/m3 Standard DB44/27- year were added in
TVOC tin and its es canteen ; tin and its 2001 the Second 2021; calculated
compounds compounds≤8.5mg/m3; Level Standard in based on air
PM(dust) PM(dust)≤120mg/m3 the Second Period volume inEmission standard environmental
for Odor Pollutants impact
(GB 14554-1993) assessment)
Table 2 Standard
1. Discharge
standard of
discharge permit:
Discharge Standard
1. Emission standard for of Electroplating
pollution discharge Water Pollutant for 3183 Total discharge
Bolu Disch certificate:
Electroplating amount is
o copper≤0.5mg/L; DB44/1597-2015
00318300
Konk Wastewater arge Main COD≤80mg/L; ammonia Table 1 Pearl River
tons/ tons/year; COD
a and pollution: PH of
year
copper COD statio discharge nitrogen≤10mg/L; total
Delta Discharge
Standard; 2. Local Note:
is 19.2 tons/year;
Bolu outlet of nitrogen≤20mg/L; total accor ammonia
o ammonia nary 1nitrogen total pollut the waste phosphorus≤0.5mg/L; 2.discharge standard: ding nitrogen is 2.4 None
Konk nitrogen total ion water local emission standard:
BFBH [2019] No. tons/year; total
a 58 Document:
to nitrogen is 4.8
Preci phosphorus sourc
station copper≤0.5mg /L; disch
es COD≤30mg/L; ammonia
COD ammonia arge tons/year. Note:
sion nitrogen≤1.5mg/L; total nitrogen total according to the
nitrogen≤10mg/L; total phosphorus based
perm discharge
phosphorus≤0.3mg/L on "Environmental
it certificate
Quality Standards
for Surface Water
GB3838-2002 "
Category IV water
standard the total
25Konka Group Co. Ltd. Interim Report 2022
nitrogen discharge
reaches 50% of
discharge limit
requirement of the
corresponding
industry
Emission Standard
sulfuric acid for Electroplating
fume≤30mg/m3； Pollutants
waste nitrogen GB21900-2008 Air
Bolu gas pollutants: oxide≤200mg/m3； Emission Limits
o sulfuric acid Disch Six on the hydrogen Table 5 Guangdong
Konk fume hydrogen arge roof of chloride≤30mg/m3； Air Pollutant The total
a and chloride of plant 1 TVOC≤90mg/m3； Emission Standard discharge is not
Bolu formaldehydehyd statio fourteen DB44/27-2001 the stated in the
o rogen cyanide nary 20 on the roof
benzene≤12mg/m3；
methylbenzen≤40mg/m3 Second Level / latest version of None
Konk nitrogen oxide pollut of plant 2 Standard in the national
a ammonia benzen ion and one in； Second Period discharge permit
Preci e methylbenzene sourc sewage
dimethylbenzene≤70mg/ Emission standard in 2020
TVOC tin and its es station m3；tin and itssion for Odor Pollutantscompounds PM compounds≤8.5mg/m3； (GB 14554-1993)
(dust) oil fume PM（dust） Table 2 Standard
≤120mg/m3；oil Emission standard
fume≤2mg/m3 of cooking fume
(GB18483-2001)
The construction of anti-pollution facilities and its operation situation
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. 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 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
26Konka Group Co. Ltd. Interim Report 2022
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 the discharge capacity would reach 1100 tons per day. The aforementioned
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 Dongjiang River.Environmental impact assessment and other environmental protection administrative licenses of the
construction project
1. XingDa HongYe
Guangdong Xingda Hongye Electronics Co. Ltd. obtained the approval from Zhongshan
Environmental Protection Bureau (ZHJ [2004] No. 61) for the operations and construction here in
2004. Subsequently it obtained the documents of ZHJD [2008] No. 06250 and ZHJD [2010] No.
04469 respectively in 2008 and 2010. After the operations of its original project Guangdong
Xingda Hongye Electronics Co. Ltd. passed the two phases of acceptance assessment including the
Phase I acceptance assessment in 2008 (HY [2008] No. 02) and the Phase II acceptance assessment
in 2012 (ZHYBG [2012] No. 000092).In December 2012 Guangdong Xingda Hongye Electronics Co. Ltd. commissioned Zhongshan
Research Institute of Environmental Protection Science to conduct the assessment of environmental
impact for the technical improvement and expansion project of Guangdong Xingda Hongye
Electronics Co. Ltd. On 31 December 2012 it obtained the approval document titled Reply to the
Report on the Environmental Impact of the Technical Improvement and Expansion Project of
27Konka Group Co. Ltd. Interim Report 2022
Guangdong Xingda Hongye Electronics Co. Ltd. (ZHJS (2012) No. 115) from Zhongshan
Environmental Protection Bureau. The document granted the approval for addition of the
production of six-layer PCB eight-layer PCB and above and HDI boards and for reduction of the
production of single-sided PCB. After the technical improvement and expansion the total
production capacity of single-sided PCB would be 200000 m2/year of double-sided PCB would be
250000 m2/year of four-layer PCB would be 300000 m2/year of six-layer PCB would be 200000
m2/year of eight-layer PCB and above would be 150000 m2/year and of HDI boards would be
100000 m2/year. In the project while the original plating equipment and processes remained
unchanged the brown oxide process was added to the original production process; all the increased
plating capacity would be outsourced. The technical improvement and expansion project was
commenced in 2013 and completed in January 2018. The commissioning was carried out from 10
February 2018 to 8 July 2018. The construction of the project complied with the requirements for
environmental impact assessment and met the criteria for the acceptance of environmental
protection for the completion of construction projects. In 2021 the Company renewed/changed the
state sewage permit certificate No.: 91442000768405216J001P.
2. Boluo Konka and Boluo Konka Precision
In 2000 Boluo Konka obtained the approval from the Huizhou Municipal Ecology and
Environment Bureau (HSHJ [2000] No. 23). The project was completed and put into operation in
the same year. The pollutant discharge permit No. is 91441322721121283N001U.In January 2007 Boluo Konka appointed Huizhou Institute of Environmental Sciences to conduct
the environmental impact assessment of the Boluo Konka Expansion Project. On February 8 2007
Boluo Konka received the Document of Approval for the Environmental Impact Report on the
Project of Boluo Konka Double Sided and Multi-Layer Boards (HSHJ [2007] No. J32). According
to the Document approval was given to the addition of double sided and multi-layer circuit boards
in the project expansion. The production capacity for single sided circuit boards would reach 1
million square meters per year and double sided and multi-layer circuit boards would reach
650000 square meters per year after the project expansion. In addition electroplating equipment
and process would be added in the expansion project. The construction of the project met the
environmental assessment requirements and satisfied the conditions for the environmental
protection in the project inspection and acceptance. The pollutant discharge permit was obtained in
the same year. The aforementioned project was later renamed as Boluo Konka Precision. In 2020
Boluo Konka Precision obtained the national pollutant discharge permit with the permit No.
91441322799316208F001V.
Contingency plan for emergent environmental incident
1. XingDa HongYe
In strict accordance with requirements of laws regulations and relevant documents such as Law of
28Konka Group Co. Ltd. Interim Report 2022
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
Zhongshan Environmental Protection Bureau Guangdong Province record No.: 442000-2020-
0348-M. 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 (which
is the comprehensive water tank in the sewage treatment station covering an area of 800m3) 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
29Konka Group Co. Ltd. Interim Report 2022
(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
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.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
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 disclosed in real time and manual monitoring data disclosed on the Real time
publicity or every 2 hours after completion. Items monitored on a monthly basis will be disclosed
by the 10th day of the month. In the case of public holidays the operation monitoring data for the
holiday period will be disclosed on the first working day after the holiday. The annual self-
monitoring report for the previous year will be disclosed at the end of January each year. In the case
of shutdown with days off the number of days off will be indicated in the information bar and
related proofs will be submitted to the monitoring center of the municipal environmental bureau for
record. The results are disclosed on Guangdong Province Key Pollution Source Regulatory
30Konka Group Co. Ltd. Interim Report 2022
Information Platform and on National Pollution Source Monitoring Information Management and
Sharing Platform for public monitoring.
2. Boluo Konka and Boluo Konka Precision
In line with the requirements of environmental departments Boluo Konka and Boluo Konka
Precision attach great importance to environmental monitoring and management. Based on the
Measures for the Self-Monitoring and Information Publicity of Enterprises under National Key
Monitoring Environmental Impact Report and the opinions stated in reply to the environmental
assessment they have established the Environmental Self-Monitoring Plan of Enterprises and filed
a record with the municipal ecology and environment bureau. According to the plan they have
installed an online monitoring system to monitor the PH value total flow COD ammonia nitrogen
and total phosphorus of the waste water and networked with the ecology and environment bureau.They appoint a qualified third-party online monitoring equipment operation and maintenance
organization to perform regular maintenance of the automatic monitoring equipment and the
monitoring data networking equipment and a qualified third-party monitoring organization to
perform the monitoring of the “three wastes”. All self-monitoring results will be reported and
published on public platforms and subject to public monitoring.No administrative punishments were received in the Reporting Period due to environmental issues.Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co. Ltd. for
H1 2022 was approximately RMB21 million mainly used for the investment 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
Boluo Konka and Boluo Konka Precision invested approximately RMB5.65 million on
environmental protection in H1 2022 in total mainly used for the daily operation and management
of waste water and gas as well as the maintenance and upgrading of equipment.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□ Applicable √ Not applicable
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
31Konka Group Co. Ltd. Interim Report 2022
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Waste in the daily production and operation without being punished for violations of laws and
regulations during the Reporting Period.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
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.
32Konka Group Co. Ltd. Interim Report 2022
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.In the first half of 2022 the Company made donations to and purchased agricultural products from
Tianzhu County and Sansui County in Guizhou Province with a total of about RMB320 thousand.
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
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
33Konka Group Co. Ltd. Interim Report 2022
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.
34Konka Group Co. Ltd. Interim Report 2022
Part VI Significant Events
I 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.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
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□ Yes √ No
The interim financial statements of the Company have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting
Period
□Applicable √ Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□Applicable √ Not applicable
VII Insolvency and Reorganization
□Applicable √ Not applicable
No such cases in the Reporting Period.VIII Legal Matters
Significant lawsuits and arbitrations:
√ Applicable □ Not applicable
Invol
ved
amou Discl Index to
General information nt Provision Progress Decisions and effects
Execution of
decisions osure
disclosed
(RM date informatio
B’00 n
00)
Because of a dispute over a 3137 The case The case has entered The case is in 19 http://www
purchase and sales contract the .20 No is in the execution phase. execution. Septe .cninfo.co
35Konka Group Co. Ltd. Interim Report 2022
Company's subsidiary Konka execution. Based on the principle mber m.cn/new/i
Huanjia Environmental of prudence the 2020 ndex
Technology Co. Ltd. sued Dalian Company has accrued
Guangxin Environmental corresponding
Protection Equipment Technology impairment reserves in
Development Co. Ltd. requiring accordance with
the latter to return equipment accounting policies.payment already made and pay
liquidated damages.As the bills held by the Company The first instance has
failed to be paid upon maturity been concluded. Based
the Company filed a lawsuit with on the principle of
the court requesting the latter to The first prudence the 19 http://www
order Wuhan Jialian Agricultural 20000 No
instance
has been Company has accrued
The case is in Septe .cninfo.co
Technology Development Co. concluded. corresponding
execution. mber m.cn/new/i
Ltd. to pay the aforesaid bills and impairment reserves in 2020 ndex
corresponding interest to the accordance with
Company. accounting policies.Because of a dispute over a The second instance
purchase and sales contract trial is ongoing. Based
Wumart Stores Inc. sued the The on the principle ofsecond prudence the 25 http://wwwBeijing Branch of the Company to 1783
the People's Court of Shijingshan .07 No instance Company has accrued
The case is under June .cninfo.co
trial is corresponding trial. 2019 m.cn/new/iDistrict in Beijing requiring the ndex
Beijing Branch to return the ongoing. impairment reserves in
prepayment for goods. accordance withaccounting policies.The
Company
has
Because of a dispute over loan the recoveredexecution The case has enteredCompany's subsidiary Anhui the execution
Konka Electronic Co. Ltd. payment phase.Based on the
applied for arbitration with of principle of prudence 19 http://www
Chuzhou Arbitration Commission 2141 No USD3005 the Company has The case is in Septe .cninfo.co
requiring the respondent Makena .50 700 and accrued corresponding execution. mber m.cn/new/i
Electronic (Shenzhen) Co. Ltd. RMB635 impairment reserves in 2020 ndex
to assume the guarantee 00 with accordance with
responsibility. theremaining accounting policies.payment
still in
execution.Because of a dispute over a
contract the Company filed a The case has entered
lawsuit with Zhengzou the execution stage.Intermediate People's Court Based on the principle
requiring Henan Radio and 3904 The case of prudence the
19 http://www
Television Network Co. Ltd. to .90 No is in Company has accrued
The case has been Septe .cninfo.co
concluded. mber m.cn/new/i
take delivery of goods make execution. corresponding 2020 ndex
payment for goods and pay impairment reserves in
interest and liquidated damages accordance with
according to the contract. accounting policies.Because of a dispute over a
contract Makena Electronic
(Shenzhen) Co. Ltd. filed a The
lawsuit with the court requiring plaintiff The plaintiff has 1 http://www
the Company and the Company's 2662 No has The plaintiff has Dece .cninfo.co
subsidiary Shenzhen Konka .43 withdrawn withdrawn the lawsuit.withdrawn the
the lawsuit.mber m.cn/new/i
Electronics Technology Co. Ltd. 2021 ndex
to make payment for goods and lawsuit.pay interest for overdue payment.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) 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
36Konka Group Co. Ltd. Interim Report 2022
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 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 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; 5. 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; 6. 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; 7. 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; 8. 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; 9. Because of dishonor of notes receivable Konka Factoring filed a lawsuit with the court requiring Tahoe
Group Co. Ltd. Fuzhou Taijia Industrial Co. Ltd. and Xiamen Lianchuang Microelectronics Co. Ltd. to make the payment of the note and the
corresponding interest to Konka Factoring.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) 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. Due to the Jiangxi
Xinxin Jian’an Engineering Co. Ltd. (hereinafter referred to as the “Jiangxi Xinxin”) Jiangxi Shanshi Technology Development Co. Ltd.(hereinafter referred to as the “Jiangxi Shanshi”) Jiangxi Zhongyi Decoration Materials Co. Ltd. (hereinafter referred to as the “Jiangxi Zhongyi”)
failed to repay the loan and its interest of China Great Wall AMC Jiangxi Branch (hereinafter referred to as the “Great Wall Jiangxi Branch”) the
Great Wall Jiangxi Branch sued to the court and required Jiangxi Xinxin Jiangxi Shanshi Jiangxi Zhongyi to repay RMB300 million with
RMB108000 liquidated damages and RMB13.65 million of interest. Meanwhile 9 guarantors including Jiangxi Konka Xinfeng Microcrystalline
and Nanocrystal are required to undertake joint liability guaranty. The judgment of first instance required that Jiangxi Xinxin Jiangxi Zhongyi and
Jiangxi Shanshi shall repay the principal interest and liquidated damages to Great Wall Jiangxi Branch and the guarantors bear the joint liability for
satisfaction to the debts. The defendants have appealed against the first instance judgment. Later the court of second instance ruled that the case
should be returned to the court of first instance for retrial. 3. Because of a dispute over a contract the Company's subsidiary Shenzhen Konka
Unifortune Technology Co. Ltd. sued Shenzhen Yaode Technology Co. Ltd. Dongsheng Xinluo Technology Co. Ltd. Shenzhen Hongyao
Dingsheng Investment Management Limited Partnership Shenzhen Xiangrui Yingtong Investment Management Co. Ltd. Luo Jingxia Luo Zongwu
Luo Zongyin Luo Zaotong and Luo Saiyin requiring them to make the payment of goods and liquidated damages; 4. 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; 5. Because of a dispute over an agency agreement the
Company's subsidiary Henan Frestec Refrigeration Appliance Co. Ltd. sued Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Shantou Meisen
Technology Co. Ltd. Lin Yuanqin Huang Ruirong Chuangfu Commercial & 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; 6. Because of a dispute over an Agency Agreement the Company's subsidiary Anhui Konka Electronics Technology Co. Ltd. sued
Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Shantou Meisen Technology Co. Ltd. Lin Yuanqin Huang Ruirong Jiangsu Huadong Hardware
Zone Co. Ltd. requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority shall be
37Konka Group Co. Ltd. Interim Report 2022
given to the payment for the secured assets; 7. Because of a dispute over an Agency Agreement the Company's subsidiary Anhui Konka Electronics
Technology Co. Ltd. sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Lin Yuanqin Huang Ruirong
Jiangsu Huadong Hardware Zone 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; 8. Because of a dispute over an Agency Agreement the Company's
subsidiary Hainan Konka Material Technology Co. Ltd. sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co.Ltd. Jiangsu Huadong Hardware Zone 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; 9. Due to the infringement of trademark and unfair competition
the Company sued Fu'an Xinshang Electronics Co. Ltd. Fujian Zhaoguan Industry and Trade Co. Ltd. Jinhua Kangjia Medical Apparatus Factory
and Wang Jun requesting an order to cease the infringement and an claim for compensation for losses; 10. Because of a dispute over repurchase the
Company sued Luo Zaotong Luo Jingxia Luo Zongyin Luo Zongwu Shenzhen Yaode Technology Co. Ltd. requesting the payment of share
repurchase and interest; 15. Because of a dispute over a contract Makena Electronic (Shenzhen) Co. Ltd. filed a lawsuit requesting the Company
and its subsidiary Shenzhen Konka Electronics Technology Co. Ltd. to pay the price of goods and the interest for late payment. 11. Because of a
dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued Dalian Jinshunda
Material Recycling Co. Ltd. Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the advance
payment and pay liquidated damages. 12. Because of a dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia
Environmental Technology Co. Ltd. sued Dalian Xinjie Renewable Resources Co. Ltd Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and
Wang Renping requiring them to return the advance payment and pay liquidated damages. 13. Because of a dispute over a purchase and sales
contract the Company's subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued Dalian Tianxing Renewable Resources Co. Ltd
Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the advance payment and pay liquidated damages.
14. Because of a dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued
Huanjia Mingtai (Dalian) Renewable Resources Co. Ltd Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them
to return the advance payment and pay liquidated damages. 15. Because of a dispute over a purchase and sales contract the Company's subsidiary
Konka Huanjia Environmental Technology Co. Ltd. sued Lankao Shunjia Renewable Resources Co. Ltd Huanjia Group Co. Ltd. Wang Bingde
Zhang Xueyin and Wang Renping requiring them to return the advance payment and pay liquidated damages. 16. Because of a dispute over a
purchase and sales contract the Company's subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued Henan Shunhenghui Renewable
Resources Co. Ltd Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the advance payment and
pay liquidated damages. 17. Because of a dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia Environmental
Technology Co. Ltd. sued Henan Jiaxin Renewable Resources Co. Ltd Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping
requiring them to return the advance payment and pay liquidated damages. 18. Because of a dispute over a purchase and sales contract the Company's
subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued Henan Shengxiang Renewable Resources Co. Ltd Huanjia Group Co. Ltd.Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the advance payment and pay liquidated damages. 19. Because of a dispute
over a logistics contract Hefei Anluda Logistics Co. Ltd. sued the Company's subsidiary Anhui Konka Tongchuang Electrical Appliances Co. Ltd.with the People's Court of Nanqiao District in Chuzhou requiring the latter to return the performance bond pay transportation fee and interest already
incurred and bear legal costs. 20. Because of a dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia Environmental
Technology Co. Ltd. sued Zhejiang Jiade Renewable Resources Co. Ltd Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping
requiring them to return the advance payment and pay liquidated damages. 21. Because of a dispute over a purchase and sales contract the Company's
subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued Zhejiang Zhijie Renewable Resource Recycling Co. Ltd. Huanjia Group Co.Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the advance payment and pay liquidated damages. 22. Because of a
dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued Zhejiang Xinkai
Renewable Resource Recycling Co. Ltd. Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the
advance payment and pay liquidated damages. 23. Because of a dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia
Environmental Technology Co. Ltd. sued Henan Huanjia Chengxin Eco-protection Technology Co. Ltd. Huanjia Group Co. Ltd. Wang Bingde
Zhang Xueyin and Wang Renping requiring them to return the advance payment and pay liquidated damages. 24. Because of a dispute over a
purchase and sales contract the Company's subsidiary Konka Huanjia Environmental Technology Co. Ltd. sued Henan Xincheng Renewable
38Konka Group Co. Ltd. Interim Report 2022
Resource Recycling Co. Ltd. Huanjia Group Co. Ltd. Wang Bingde Zhang Xueyin and Wang Renping requiring them to return the advance
payment and pay liquidated damages. 25. Because of a dispute over a purchase and sales contract the Company's subsidiary Konka Huanjia
Environmental Technology Co. Ltd. sued Henan Guozheng Eco-protection Technology Co. Ltd. Huanjia Group Co. Ltd. Wang Bingde Zhang
Xueyin and Wang Renping requiring them to return the advance payment and pay liquidated damages. 26. Because of a dispute over a purchase and
sales contract the Company's subsidiary Dongguan Konka Electronic Co. Ltd. filed a lawsuit with the People's Court of Nanshan District in
Shenzhen requesting Dongguan Gaoneng High Polymer Materials Co. Ltd. Wang Dong Shenzhen Xinlian Xingyao Trade Co. Ltd. Shenzhen
Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong Trade Co. Ltd. and Huang Zhihao to make the overdue payment for goods and
pay corresponding liquidated damages.Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□Applicable √ Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□Applicable √ Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
As % Obtaina
Relati of total Approv ble Index
onshi Tran Total value ed Over Method market to
Related p with Type of Specific Pricing sacti value of all transact the price Disclos discl
party the transact transaction princip on (RMB’ same- ion line approv
of
settlem for ure osed
Comp ion le price 0000) type (RMB’ ed line same- date infor
any transact 0000) or not
ent type matio
ions transact nions
OCT Under Purchas
Enterpr the e of
ises Property
Co. same commo manageme Negoti Mark 30
Ltd and nt utilities ated et
3771.2
0 0.74% 10000 Not Cash N/A March
its actual dities office price price 2022
subsidi leases http:/contro and
aries /ww
ller services w.cni
Sale of nfo.c
Under Sales of TVs om.cOCT n/ne
Enterpr intelligentthe goods w/ind
ises terminals
Co. same and etc. and Negoti Mark 30
ex
Ltd and collection ated et
13351. 2.54% 20000 Not Cash N/A March
its actual services of price price
242022
subsidi installationcontro
aries charges for
ller smart TV
terminals
Total -- -- 17122.44 -- 30000 -- -- -- -- --
Large-amount sales return in detail N/A
Give the actual situation in the Reporting The Company has published the Forecasting Public Notice on Routine Related-party Transaction for
Period (if any) where an estimate had been Y2022 on Securities Times Shanghai Securities News and China Securities Journal as well as the Internet
made for the total value of continuing website designated by CSRC http://http://www.cninfo.com.cn/new/index on 30 March 2022. In the
related-party transactions by type to occur in Reporting Period the basis for pricing transaction price transaction amount and settlement methods of
the Reporting Period raw materials purchased by the Company were basically in accordance with the forecast. The total amountincurred was RMB171.2244 million.Reason for any significant difference
between the transaction price and the market N/A
reference price (if applicable)
39Konka Group Co. Ltd. Interim Report 2022
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity
Investments
□Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□Applicable √ Not applicable
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
Credits receivable with related parties:
Whether
there is Beginni Increased in Recovered Interest in
Related Forming occupation ng
the in the the Ending
Related party on non- balance Reporting Reporting Reporting balancerelationship reason operating (RMB’0 Period Period
Interest rate Period (RMB’000
capital or 000) (RMB’000 (RMB’000 (RMB’000 0)
not 0) 0) 0)
Chuzhou Demand
Kangjin Health Subsidiary
Industry of
of
business Not 15773. 0 2450 7.00% 522.37 13323.64
Development controlling 64
Co. Ltd. shareholder
developm
ent
Effects of credits with related parties on the No effect to the normal operation of the Company. The Company and other shareholders of Chuzhou
Company’s operating results and financial Kangjin Health Industry Development Co. Ltd. offer financial assistance under the same conditions in
conditions accordance to their shareholding ratio.Liabilities payable to related parties:
Increased in Recovered in Interest in
Related Beginning the the the EndingRelated relation Forming balance Reporting Reporting Interest Reporting balanceparty ship reason (RMB’0000 Period Period rate Period (RMB’0000) (RMB’0000 (RMB’0000 (RMB’00 )
))00)
1091.001091.004.04%22.16
OCT Control The 100000.00 48909.00 4.04% 2031.22 51091.00
Enterprise ling Companyapplies 20000.00 4.04% 406.24 20000.00s Co. shareh entrusted 150000.00 4.04% 2895.33 150000.00Ltd. older loan to it 50000.00 4.04% 241.28 50000.00
70000.004.04%282.8070000.00
100000.00100000.004.04%11.22
Effects of liabilities with related
parties on the Company’s operating The Company applies entrusted loan from OCT Enterprises Co. Ltd. which meets the
results and 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
40Konka Group Co. Ltd. Interim Report 2022
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
√Applicable □ Not applicable
In order to satisfy the capital needs of Chuzhou Kangjin Health Industry Development Co. Ltd.
(Chuzhou Kangjin) for daily operations as of the disclosure date of this periodic reportthe
Company made a capital increase of RMB157.7359 million to Chuzhou Kangjin (consideration of
RMB1 for RMB1 of registered capital) together with Shanghai OCT Co. Ltd. in proportion to their
shareholding percentages in Chuzhou Kangjin. Upon the capital increase the registered capital of
Chuzhou Kangjin would increase from RMB30 million to RMB351.91 million. And the Company’s
shareholding percentage in Chuzhou Kangjin would remain unchanged.Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on a Capital Increase to Chuzhou Kangjin Health Industry
2 June 2022
Development Co. Ltd. and the Related-party Transaction
Announcement on the Provision of Guarantee Line for Joint Stock Company and
28 April 2022
the Related-party Transaction
Announcement on the Application to China Everbright Bank for Comprehensive
30 March 2022
Credit Line & the Related-party Transaction
http://www.cninfo.Announcement on the Provision of Counter-guarantee for the Application to Bank
30 March 2022 com.cn/new/index
for Credit Line & the Related-party Transaction
Announcement on the Termination of the Asset Acquisition by Share Offering and
7 March 2022
Cash Payment and Raising the Matching Funds & the Related-party Transaction
Announcement on the Provision of Counter-guarantee by Shenzhen Konka
Telecommunications Technology Co. Ltd. to Shenzhen Overseas Chinese Town 23 February 2022
Co. Ltd. & the Related-party Transaction
XII 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 rental revenue of Konka R&D Building was approximately RMB34263075.17 in the
Reporting Period.The project bringing about gains or losses as over 10% of total profit in the Reporting Period
41Konka Group Co. Ltd. Interim Report 2022
□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)
Disclosure date of Actual Actual Type of Collater Counter Term of Having Guarantee
Obligor Line ofthe guarantee line occurrence guarantee guarante al (if guarantee guarant expired for a related
guarantee
announcement date amount e any) (if any) ee or not party or not
Yibin OCT Sanjiang 2018/09/19 and
Properties Co. Ltd. 2020/03/24 40000 2019/09/29 14000
Joint-
liability No Not
Three
years Not Yes
2022/05/19 1749 Joint- Oneliability No Not year Not Not
2022/05/17 3747 Joint- One
Econ Technology 2022/04/28 50000 liability
No Not year Not Not
2022/05/18 4997 Joint- Oneliability No Not year Not Not
2022/06/28 250 Joint-liability No Not
One
year Not Not
Shenzhen Overseas
Chinese Town Co. 2022/02/23 16000 2022/05/31 10000 Joint- One
Ltd. liability
No Not year Not Not
Foshan Pearl River
Media Creative Park
Culture Development 2022/04/28 1372 2022/05/17 980
Joint- One
liability No Not year Not Not
Co. Ltd.Jiangxi Xinxin
Jian’an Engineering 10000 2016/12/12 10000 Joint-
Co. Ltd. liability
No Not Not Not
Jiangxi Zhongyi
Decoration Materials 10000 2016/12/12 10000 Joint-
Co. Ltd. liability
No Not Not Not
Jiangxi Shanshi
Technological
Development Co. 10000 2016/12/12 10000
Joint-
liability No Not Not Not
Ltd.Total approved line for such guarantees in the Reporting 651872 Total actual amount of such guarantees in the Reporting PeriodPeriod (A1) (A2) 21723
Total approved line for such guarantees at the end of the 785572 Total actual balance of such guarantees at the end of theReporting Period (A3) Reporting Period (A4) 65723
Guarantees provided between the Company and subsidiaries
Disclosure Guarantee
date of the Line ofObligor guarante Actual occurrence
Actual Collater Counter Having for a
guarantee line date guarantee
Type of
guarantee al (if guarantee
Term of
guarantee expired or related
announcement e amount any) (if any) not party ornot
2021/07/16 6000 Joint-liability No Not One year Not Not
Anhui 2018/05/23
Tongchuang and 55000
2021/10/28 3000 Joint-liability No Not One year Not Not
2018/09/19 2022/04/14 5000 Joint-liability No Not One year Not Not
2022/06/02 3000 Joint-liability No Not One year Not Not
2017/03/31 2021/09/08 11000 Joint-liability No Not One year Not Not
Hong Kong 2018/10/31
Konka and 90000 2022/02/09 10000 Joint-liability No Not One year Not Not
2022/04/28
Boluo Konka 2018/03/31
Precision and 125000 2020/08/19 2480 Joint-liability No Not
Three
2022/04/28 years
Not Not
Electronics 2021/10/18 7000 Joint-liability No Not One year Not Not
Technology 2018/9/19 350000 2021/11/05 50000 Joint-liability No Not One year Not Not
2022/04/12 1500 Joint-liability No Not One year Not Not
Dongguan 2018/9/19 and 90000 2022/03/18 5000 Joint-liability No Not One year Not NotKonka 2021/3/24 2021/06/23 80000 Joint-liability No Not Ten years Not Not
2022/2/23 5800 Joint-liability No Other Two years Not Not
2020/12/25 2000 Joint-liability No shareholder Threeof XingDa years Not Not
HongYe
provides a
XingDa counter
HongYe 2018/9/19 10000 guarantee
2021/5/31 750 Joint-liability No for theCompany Two years Not Not
for 49% of
the
guarantee
line
Jiangxi Other Three
Konka 2018/10/31 60000
2020/11/06 10000 Joint-liability No shareholder years Not Not
2022/06/26 6000 Joint-liability No of Jiangxi One year Not Not
42Konka Group Co. Ltd. Interim Report 2022
2020/09/29 10000 Joint-liability No Konka Threeprovides a years Not Not
counter
2020/12/21 5000 Joint-liability No guarantee Two years Not Not
for the Three
2019/06/26 5500 Joint-liability No Company years and Not Not
for 49% of a half
the
2019/10/30 6500 Joint-liability No Threeguarantee years Not Not
2022/03/10 990 Joint-liability No line Two years Not Not
2020/12/30 1000 Joint-liability No Threeyears Not Not
2020/05/19 5000 Joint-liability No Other Threeshareholder years Not Not
of Xinfeng
2020/05/29 3479 Joint-liability No Two yearsMicrocrysta and a half Not Not
lline
2020/12/08 2100 Joint-liability No Threeprovides a years Not NotXinfeng
Microcrystall 2019/3/30 25000 2021/12/27 7200 Joint-liability No counter One year Not Not
ine guaranteefor the
Company
2022/06/29 7200 Joint-liability No for 49% of One year Not Not
the
guarantee
line
Other Three
2019/06/26 10000 Joint-liability No shareholder years and Not Not
of Jiangxi a half
2020/01/08 5000 Joint-liability No High ThreeTransparent years Not Not
Substrate
Jiangxi High 2019/12/20 5000 Joint-liability No
Three
provides a years Not Not
Transparent 2019/3/30 45000 2022/03/10 990 Joint-liability No counter Two years Not Not
Substrate guarantee
2020/05/29 5975 Joint-liability No Two yearsfor the and a half Not Not
Company
for 49% of
2020/07/14 6000 Joint-liability No the Three
guarantee years
Not Not
line
Sichuan 2018/3/31 and
Konka 2021/3/24 65000 2022/03/22 4000 Joint-liability No No One year Not Not
Ningbo 2020/06/06and 12000 2020/10/15 6000 Joint-liability No No Two years Not NotKanghanrui 2022/04/28 2021/07/12 6000 Joint-liability No No One year Not Not
Other
shareholder
of Yibin
Kangrun
provides a
Yibin counter
Kangrun 2020/10/24 10000 2020/11/13 10000 Joint-liability No guarantee Four years Not Notfor the
Company
for 33% of
the
guarantee
line
Telecommun
ication 2022/04/28 20000 2022/05/20 7500 Joint-liability No No One year Not Not
Technology
2021/03/25 20000 Joint-liability No Other One yearshareholder and a half Not Not
2021/04/02 5500 Joint-liability No of Anhui One yearKonka and a half Not Not
provides a
2017/03/31 2021/04/25 12000 Joint-liability No
One year
counter and a half Not Not
Anhui Konka and 110000 2021/08/10 28000 Joint-liability No guarantee Ten years Not Not
2022/04/28 for the
Company
for 22% of
2021/10/29 7000 Joint-liability No the Five years Not Not
guarantee
line
Konka Three
Circuit 2021/03/24 50000 2021/05/24 20000 Joint-liability No No years and Not Nota half
Mobile 2017/03/31
Interconnecti and 10000 2021/08/11 5000 Joint-liability No No One year Not Not
on 2022/04/28
Liaoyang 2021/03/24 2021/12/23 2000 Joint-liability No No One year Not Not
Kangshun and 200002022/04/28 2022/01/19 5000 Joint-liability No No One year Not Not
Konka
Xinyun 2021/03/24 30000
2021/07/12 20000 Joint-liability No No One year Not Not
2022/05/26 6000 Joint-liability No No Two years Not Not
Yibin Konka
Intelligent 2021/03/24 10000 2022/03/31 980 Joint-liability No No One year Not Not
43Konka Group Co. Ltd. Interim Report 2022
Total approved line for such guarantees in the Reporting Period (B1) 334470 Total actual amount of such guarantees in theReporting Period (B2) 68960
Total approved line for such guarantees at the end of the Reporting Period (B3) 1605103 Total actual balance of such guarantees at theend of the Reporting Period (B4) 460444
Guarantees provided between subsidiaries
Disclosure Guarantee
Obligor date of the
Line of
guarante Actual occurrence
Actual Collater Counter Having for a
guarantee line date guarantee
Type of Term of
guarantee al (if guarantee guarantee expired or related
announcement e amount any) (if any) not party ornot
Lands
Anhui house
Electrical 13500 2020/07/03 13500 Mortgage propert Three
Appliance pledge y
No years Not Not
equity
interests
Boluo Konka House
Precision 12449 2021/07/06 12449 Mortgage propert No Two years Not Noty
Total approved line for such guarantees in the Reporting Period (C1) 0 Total actual amount of such guarantees in theReporting Period (C2) 0
Total approved line for such guarantees at the end of the Reporting Period (C3) 25949 Total actual balance of such guarantees at the end ofthe Reporting Period (C4) 25949
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period (A1+B1+C1) 986342 Total actual guarantee amount in the ReportingPeriod (A2+B2+C2) 90683
Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) 2416624 Total actual guarantee balance at the end of theReporting Period (A4+B4+C4) 552116
Total actual guarantee amount (A4+B4+C4) as % of the Company’s
net assets 59.47%
Of which:
Balance of guarantees provided for shareholders actual controller and their related parties (D) 24000
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 552116
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 87944
Total of the three amounts above (D+E+F) 552116
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 for Wealth Management
□Applicable √ Not applicable
High-risk wealth management transactions with a significant single amount or with low security
low liquidity or no principal protection:
□ Applicable √ Not applicable
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
4. Other Major Contracts
□Applicable √ Not applicable
No such cases in the Reporting Period.XIII Other Significant Events
√ Applicable □ Not applicable
(I) Initiation and establishment of funds: The total units of the Oriental-Konka Industry M&A Fund
worth 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 RMB487337300. The fund invested in Jiangxi
Yahua Electronic Materials Co. Ltd. Genew Technologies Co. Ltd. etc. The total units of the
Kunshan-CITIC-Konka Emerging Industry Development Investment Fund worth
RMB1006000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500 million
accounting for 49.7018% of the total units. By the date of this report Shenzhen Konka Investment
44Konka Group Co. Ltd. Interim Report 2022
Holding Co. Ltd. has contributed RMB173939600. The fund invested in UNIONTECH Hercules
Microsystems (HME) etc. The total units of the Tongxiang Wuzhen Jiayu Digital Economic
Industry Fund worth 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. Guangdong Tianyu Venture Capital Partnership (Limited
Partnership) etc. The total units of Yibin Kanghui Electronic Information Industry Equity
Investment Fund worth 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. and Shenzhen Konka Capital Equity Investment Management Co.Ltd. have contributed RMB104 million. The fund invested in Talkweb Information System Co. Ltd.and Shenzhen E2info Network Technology Co. Ltd. The total units of Yancheng Kangyan Industry
Investment Fun worth 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 RMB217366600. The fund invested in Anhui Zhongdian Xingfa and Xinlong Co. Ltd.etc. The total units of Chongqing Kangxin Equity Investment Fund worth RMB2 billion. Shenzhen
Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management
Co. Ltd. contributed RMB1 billion accounting for 50.00% 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 RMB148250100. The fund invested in Jiangxi
Taide Wisdom Technology Co. Ltd. etc.(II) Disclosure index of significant information
Announce
ment No. Date Title Page on newspaper
Website
link
Announcement on Progress of Asset Acquisition and Funds Raising by http://ww
2022-01 2022/1/8 Issuance of Shares and Cash Payment and Progress of Related TransactionSecurities Daily B76 Shanghai Securities News28 etc. w.cninfo.cPlan After Disclosure om.cn/ne
2022-02 2022/1/18 Announcement on Resolutions of 53th Meeting of the Ninth Board ofSecurities Daily B22 Shanghai Securities News
w/index
Directors 84 etc.
2022-03 2022/1/18 Announcement on Proposed introduction of Strategic Investors by ControllingSecurities Daily B22 Shanghai Securities NewsCompany 84 etc.
2022-04 2022/1/25 2021 Result Forecast Securities Daily B31 Shanghai Securities News29 etc.
2022-05 2022/1/25 Announcement on Progress of Security for Controlling Company Securities Daily B31 Shanghai Securities News29 etc.
Announcement on Progress of Asset Acquisition and Funds Raising by
2022-06 2022/2/9 Issuance of Shares and Cash Payment and Progress of Related TransactionSecurities Daily B31 Shanghai Securities News
Plan After Disclosure 36 etc.
2022-07 2022/2/17 Announcement on the Change of the Signatory Certified Public Accountant Securities Daily B37 Shanghai Securities News16 etc.
2022-08 2022/2/23 Announcement on Resolutions of 54th Meeting of the Ninth Board ofSecurities Daily B38 Shanghai Securities NewsDirectors 33 etc.
2022-09 2022/2/23 Announcement on Providing Financial Assistance to Shandong EconSecurities Daily B38 Shanghai Securities NewsTechnology Co. Ltd. at Shareholding Ratio 33 etc.
45Konka Group Co. Ltd. Interim Report 2022
Announcement on Providing Counter Guarantee to and Conducting
2022-10 2022/2/23 Connected Transaction with Shenzhen Overseas Chinese Town Co. Ltd. bySecurities Daily B38 Shanghai Securities News
Shenzhen Konka Telecommunications Technology Co. Ltd. 33 etc.
2022-11 2022/2/23 Announcement on Progress of Guarantee Provision for GuangDong XingDaSecurities Daily B38 Shanghai Securities NewsHongYe Electronic Co. Ltd. 33 etc.
2022-12 2022/3/1 Announcement on Resignation of the Company's Director Securities Daily B48 Shanghai Securities News60 etc.
2022-13 2022/3/1 Announcement on Resignation of the Company's Vice President Securities Daily B48 Shanghai Securities News60 etc.
2022-14 2022/3/7 Announcement on Resolutions of 55th Meeting of the Ninth Board ofSecurities Daily B3 Shanghai Securities NewsDirectors 28 etc.
2022-15 2022/3/7 Announcement on Resolutions of 19th Meeting of the Ninth Board ofSecurities Daily B3 Shanghai Securities NewsDirectors 28 etc.
2022-16 2022/3/7 Announcement on Providing Financial Assistance to Sichuan Chengrui RealSecurities Daily B3 Shanghai Securities NewsEstate Co. Ltd. at Shareholding Ratio 28 etc.
2022-17 2022/3/7 Notice on Convening 2022 First Extraordinary General Meeting Securities Daily B3 Shanghai Securities News28 etc.
2022-18 2022/3/7 Announcement on the Termination of Asset Acquisition and Funds Raising bySecurities Daily B3 Shanghai Securities NewsIssuance of Shares or Cash Payment and Related Transaction Matters 28 etc.
2022-19 2022/3/23 Announcement on Resolutions of 2022 First Extraordinary General Meeting Securities Daily B54 Shanghai Securities News60 etc.
2022-20 2022/3/24 Announcement on the Postponement of the Replacement of the Board ofSecurities Daily B14 Shanghai Securities NewsDirectors and the Board of Supervisors 16 etc.
2022-21 2022/3/25 Announcement on Proposed Introduction of Strategic Investors by ControllingSecurities Daily B60 Shanghai Securities NewsCompany 84 etc.
2022-22 2022/3/30 2021 Annual Report of Mercedes-Benz Group AG
2022-23 2022/3/30 Announcement on Resolutions of 56th Meeting of the Ninth Board ofSecurities Daily B55 Shanghai Securities NewsDirectors 57 etc.
2022-24 2022/3/30 Announcement on Resolutions of 20th Meeting of the Ninth Board ofSecurities Daily B55 Shanghai Securities NewsDirectors 57 etc.
2022-25 2022/3/30 Announcement on Expected Routine Connected Transactions in 2022 Securities Daily B56 Shanghai Securities News57 etc.
2022-26 2022/3/30 Announcement on Plan of Profit Distribution for 2022 Securities Daily B55 Shanghai Securities News59 etc.
2022-27 2022/3/30 Notice on Convening 2021 Shareholders' General Meeting Securities Daily B55 Shanghai Securities News57 etc.
2022-28 2022/3/30 Announcement on Accrual of Asset Impairment Reserves for 2021 Securities Daily B55 Shanghai Securities News57 etc.
2022-29 2022/3/30 Announcement on Providing Counter Guarantee and Conducting ConnectedSecurities Daily B55 Shanghai Securities NewsTransaction for Applying for Bank Credit Business 59 etc.
2022-30 2022/3/30 Announcement on Issuing the Plan for the Company's Private Offering ofSecurities Daily B56 Shanghai Securities NewsCorporate Bonds and Providing Counter Guarantee for OCT Group 59 etc.
2022-31 2022/3/30 Announcement on Applying for a Comprehensive Line of Credit to andSecurities Daily B56 Shanghai Securities NewsConducting Connected Transactions with China Everbright Bank 57 etc.
2022-32 2022/3/30 Abstract of 2021 Annual Report Securities Daily B55 Shanghai Securities News57 etc.
Announcement on Completion of Industrial and Commercial Registration of
2022-33 2022/4/1 Changes for Capital Increase of Hefei KONSEMI Storage Technology Co.Securities Daily B92 Shanghai Securities News
Ltd. 92 etc.
2022-34 2022/4/1 Announcement on Holding 2021 Online Result Release Securities Daily B92 Shanghai Securities News92 etc.
2022-35 2022/4/1 Announcement on Progress of Security for Controlling Company Securities Daily B100 Shanghai SecuritiesNews 92 etc.
2022-36 2022/4/26 Announcement on Resolutions of 2021 Shareholders' General Meeting Securities Daily B219 Shanghai SecuritiesNews 236 etc.
2022-37 2022/4/28 2022Q1 Report Securities Daily B181 Shanghai SecuritiesNews 193 etc.
2022-38 2022/4/28 Notice on Convening 2022 Second Extraordinary General Meeting Securities Daily B183 Shanghai SecuritiesNews 194 etc.
2022-39 2022/4/28 Announcement on Resolutions of 57th Meeting of the Ninth Board ofSecurities Daily B181 Shanghai SecuritiesDirectors News 193 etc.
2022-40 2022/4/28 Announcement on Proposed Sale of Some of Equity in Chutian Dragon Co.Securities Daily B183 Shanghai SecuritiesLtd. News 194 etc.
2022-41 2022/4/28 Announcement on Progress of Guarantee Provision for Wholly-ownedSecurities Daily B182 Shanghai SecuritiesCompany News 194 etc.
2022-42 2022/4/28 Announcement on External Guarantee Securities Daily B181 Shanghai SecuritiesNews 193 etc.
2022-43 2022/4/28 Announcement on Providing Security Limit to and Conducting ConnectedSecurities Daily B182 Shanghai SecuritiesTransaction with Shareholding Company News 194 etc.
46Konka Group Co. Ltd. Interim Report 2022
2022-44 2022/5/17 Announcement on Resolutions of 2022 Second Extraordinary GeneralSecurities Daily B91 Shanghai Securities NewsMeeting 76 etc.
2022-45 2022/5/21 Announcement on Resolutions of 58th Meeting of the Ninth Board ofSecurities Daily B16 Shanghai Securities NewsDirectors 25 etc.
2022-46 2022/5/21 Announcement on Transfer of 100% of Equity in Xi'an Huasheng JiachengSecurities Daily B16 Shanghai Securities NewsReal Estate Co. Ltd. 25 etc.
2022-47 2022/6/2 Announcement on Resolutions of 59th Meeting of the Ninth Board ofSecurities Daily B16 Shanghai Securities NewsDirectors 41 etc.
2022-48 2022/6/2 Announcement on Increasing Capital to and Conducting ConnectedSecurities Daily B16 Shanghai Securities NewsTransaction with Chuzhou Kangjin Health Industrial Development Co. Ltd. 41 etc.
2022-49 2022/6/2 Announcement on Progress in the Provision of External Guarantee Securities Daily B16 Shanghai Securities News41 etc.
2022-50 2022/6/2 Announcement on Distribution of 2022 Annual Equity Securities Daily B71 Shanghai Securities News52 etc.
2022-51 2022/6/11 Announcement on Resolutions of 60th Meeting of the Ninth Board ofSecurities Daily B23 Shanghai Securities NewsDirectors 41 etc.
2022-52 2022/6/11 Notice on Convening 2022 Third Extraordinary General Meeting Securities Daily B23 Shanghai Securities News41 etc.
2022-53 2022/6/11 Announcement on Revision of the Articles of Association and other systemsSecurities Daily B22 Shanghai Securities Newsof the Company 41 etc.
2022-54 2022/6/18 Announcement on Progress of Guarantee Provision for Wholly-ownedSecurities Daily B22 Shanghai Securities NewsCompany 20 etc.
2022-55 2022/6/25 Announcement on Voluntary Information Disclosure for Signing CooperationSecurities Daily B71 Shanghai Securities NewsFramework Agreement with Hangzhou Hemai Power Electronics Co. Ltd. 60 etc.
2022-56 2022/6/28 Announcement on Resolutions of 2022 Third Extraordinary General Meeting Securities Daily B57 Shanghai Securities News52 etc.
2022-57 2022/6/28 Announcement on Progress in Transfer of 100% of Equity in Xi'an HuashengSecurities Daily B57 Shanghai Securities NewsJiacheng Real Estate Co. Ltd. 52 etc.
XIV Significant Events of Subsidiaries
□Applicable √ Not applicable
47Konka Group Co. Ltd. Interim Report 2022
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Shares as
as dividen
dividen d
Shares Percentag New d convert Percentae (%) issues convert ed Other Subtotal Shares ge (%)
ed from
from capital
profit reserve
s
1. Restricted shares 19500 0.00% 6500 6500 26000 0.00%
1.3 Shares held by other
domestic investors 19500 0.00% 6500 6500 26000 0.00%
Shares held by domestic
legal person 19500 0.00% 6500 6500 26000 0.00%
2. Unrestricted shares 2407925908 100.00% -6500 -6500 2407919408 100.00%
2.1 RMB-denominated
ordinary shares 1596574300 66.31% -6500 -6500 1596567800 66.31%
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
During the Reporting Period Mr. Sun Qingyan resigned as Vice President for personal reasons and
the 26000 shares held by him in the Company were locked up within six months upon his
resignation according to the applicable laws and regulations.Approval of the share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ 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:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to
be disclosed:
48Konka Group Co. Ltd. Interim Report 2022
□Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Increase in
Unlocked
Beginning restricted Ending
Name of in the Date of
restricted shares in the restricted Reason for restriction
shareholder current unlocking
shares current shares
period
period
Locked up in full within six 1 September
Sun Qingyan 19500 0 6500 26000
months upon his resignation 2022
Total 19500 0 6500 26000 -- --
II Issuance and Listing of Securities
□Applicable √ Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
Number of ordinary shareholders 85899 Number of preferred shareholders with resumed voting rights (ifany) (see note 8)
5% or greater ordinary shareholders or top 10 ordinary shareholders
Shares in
Total Increase/de pledge
Nature of Shareholdi ordinary crease in Restricted Unrestricted
marked or
Name of shareholder shareholder ng shares held the ordinary ordinary
frozen
percentage at the Reporting shares held shares held S
period-end Period Status har
es
OVERSEAS CHINESE TOWN State-owned
HOLDINGS COMPANY legal person 21.75% 523746932 0 0 523746932
CITIC SECURITIES
BROKERAGE (HONG KONG) Foreign legalperson 7.48% 180001110 0 0 180001110CO. LTD.WANG JINGFENG Domesticnatural person 4.63% 111411100 300000 0 111411100
GUOYUAN SECURITIES Foreign legal
BROKER (HK) CO. LTD. person 2.46% 59300325 0 0 59300325
HOLY TIME GROUP LIMITED Foreign legalperson 2.38% 57289100 0 0 57289100
GAOLING FUNDL.P. Foreign legalperson 2.19% 52801250 0 0 52801250
NAM NGAI Foreign naturalperson 0.96% 23176840 609300 0 23176840
CHINA MERCHANTS State-owned
SECURITIES (HK) LIMITED legal person 0.81% 19429720 115500 0 19429720
BOCOM INTERNATIONAL Foreign legal
SECURITIES LIMITED person 0.78% 18896037 0 0 18896037
HONG KONG SECURITIES
CLEARING COMPANY Foreign legal
LIMITED person
0.59%141429135431354014142913
Strategic investor or general legal person becoming a top-10 ordinary shareholder due to rights issue (if
any) (see note 3) N/A
Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first
majority shareholder Overseas Chinese Town Holdings Company (OCT Group)
Related or acting-in-concert parties among the shareholders holds 180001110 and 18360000 ordinary shares in the Company respectively
above through CITIC Securities Brokerage (Hong Kong) Co. Ltd. and China MerchantsSecurities (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 with voting rights or waiving voting N/A
rights
Special account for share repurchases (if any) among the top 10
shareholders (see note 11) None
Top 10 unrestricted ordinary shareholders
49Konka Group Co. Ltd. Interim Report 2022
Name of shareholder Unrestricted ordinary shares held at the Shares by typeperiod-end Type Shares
OVERSEAS CHINESE TOWN HOLDINGS
COMPANY 523746932 RMB-denominated ordinary stock 523746932
CITIC SECURITIES BROKERAGE (HONG
KONG) CO. LTD. 180001110 Domestically listed foreign stock 180001110
WANG JINGFENG 111411100 RMB-denominated ordinary stock 111411100
GUOYUAN SECURITIES BROKER (HK)
CO. LTD. 59300325 Domestically listed foreign stock 59300325
HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign stock 57289100
GAOLING FUNDL.P. 52801250 Domestically listed foreign stock 52801250
NAM NGAI 23176840 Domestically listed foreign stock 23176840
CHINA MERCHANTS SECURITIES (HK)
LIMITED 19429720 Domestically listed foreign stock 19429720
BOCOM INTERNATIONAL SECURITIES
LIMITED 18896037 Domestically listed foreign stock 18896037
HONG KONG SECURITIES CLEARING
COMPANY LIMITED 14142913 RMB-denominated ordinary stock 14142913
Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first majority
Related or acting-in-concert parties among top shareholder Overseas Chinese Town Holdings Company (OCT Group) holds 180001110 and
10 unrestricted ordinary shareholders as well 18360000 ordinary shares in the Company respectively through CITIC Securities Brokerage (Hong
as between top 10 unrestricted ordinary Kong) Co. Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment Limited and
shareholders and top 10 shareholders 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 Wang Jingfeng holds 111411100 A-shares in the Company through his securities account for customer
securities margin trading (if any) (see note 4) credit trading guarantee in Guotai Junan Securities Co. Ltd.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
No such cases in the Reporting Period.IV Change in Shareholdings of Directors Supervisors and Senior Management
□Applicable √ Not applicable
No changes occurred to the shareholdings of the directors supervisors and senior management in
the Reporting Period. See the 2021 Annual Report for more details.V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
50Konka Group Co. Ltd. Interim Report 2022
Part VIII Preference Shares
□Applicable √ Not applicable
No Preference shares in the Reporting Period.
51Konka Group Co. Ltd. Interim Report 2022
Part IX 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
Bonds
Name Abbr. Code Issue date Value date Due date balance Intere Trade(RMB’000 st rate Way of redemption place
0)
Privately placed Interests shall be
corporate bonds in 21 paid every year and Shenzhe
2021 of Konka Konka 114894 8 January 8 January 8 January 10000000 4.46% the principals shall n Stock
Group Co. Ltd 01 2021 2021 2024 00.00 be repaid when Exchang
(Tranche I) expired. e
Privately placed Interests shall be
corporate bonds in 21 paid every year and Shenzhe
2021 of Konka Konka 133003 21 May 21 May 21 May 50000000 4.00% the principals shall n Stock
Group Co. Ltd 02 2021 2021 2024 0.00 be repaid when Exchang
(Tranche II) expired. e
Privately placed Interests shall be
corporate bonds in 21 paid every year and Shenzhe
2021 of Konka Konka 133040 9 July 2021 9 July 2021 9 July 2024 80000000 3.95% the principals shall n Stock
Group Co. Ltd 03 0.00 be repaid when Exchang
(Tranche III) expired. e
Corporate bonds
publicly offered to Interests shall be
professional 22 Shenzhe
investors in 2022 of Konka 149987 14 July 14 July 14 July 12000000
paid every year and
2022 2022 2025 00.00 3.23% the principals shall
n Stock
Konka Group Co. 01 be repaid when Exchang
Ltd. (Tranche I) expired. e
(Variety I)
“21 Konka 01” “21 Konka 02” “21 Konka 03” were placed privately to professional investors meeting the requirementsAppropriate arrangement of of management method for investors eligibility of Shenzhen Stock Exchange which not exceeding 200 persons. “22the investors (if any) Konka 01” were offered publicly to professional investors meeting the requirements of management method for
investors eligibility of Shenzhen Stock Exchange.Applicable trade mechanism 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. Adjustment of Credit Rating Results during the Reporting Period
□Applicable √ Not applicable
4. 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 applicable
52Konka Group Co. Ltd. Interim Report 2022
III Debt Financing Instruments of Non-financial Enterprises
□Applicable √ Not applicable
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
VI The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0000
Item 30 June 2022 31 December 2021 Change
Current ratio 116.99% 88.92% 31.57%
Debt/asset ratio 73.59% 74.42% -0.83%
Quick ratio 94.24% 71.36% 32.06%
H1 2022 H1 2021 Change
Net profit before exceptional gains and losses -74235.62 -71012.46 -4.54%
EBITDA/debt ratio 2.74% 3.19% -0.45%
Interest cover (times) 0.89 1.15 -22.61%
Cash-to-interest cover (times) -0.03 -1.50 -98.00%
EBITDA-to-interest cover (times) 1.72 1.72 0.00%
Debt repayment ratio (%) 100.00% 100.00% 0.00%
Interest payment ratio (%) 100.00% 100.00% 0.00%
53Konka Group Co. Ltd. Interim Report 2022
Part X Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□ Yes √ No
The interim financial statements of the Company have not been audited by an independent auditor.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co. Ltd.
30 June 2022
Unit: RMB
Item 30 June 2022 1 January 2022
Current assets:
Monetary assets 6534638395.86 6489553211.24
Settlement reserve
Interbank loans granted
Held-for-trading financial assets
Derivative financial assets
Notes receivable 934842104.68 1777477481.28
Accounts receivable 3372628831.51 3397729481.07
Accounts receivable financing 9926723.80 71490688.54
Prepayments 611349670.64 631400953.86
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 1810261803.88 1837459705.64
Including: Interest receivable 3478418.99 2573082.79
Dividends receivable
Financial assets purchased under resale agreements
Inventories 4018041845.92 4068537809.18
Contract assets
Assets held for sale
Current portion of non-current assets 28493943.14 28105523.78
Other current assets 3342866416.60 2299963391.24
Total current assets 20663049736.03 20601718245.83
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables 10430400.00 18495499.14
Long-term equity investments 6273716368.75 5902588939.51
Investments in other equity instruments 23841337.16 23841337.16
Other non-current financial assets 2460095518.48 2293361603.68
Investment property 774860887.71 776525061.54
Fixed assets 3960662993.10 4010295277.14
Construction in progress 1781601493.64 1490777831.39
Productive living assets
54Konka Group Co. Ltd. Interim Report 2022
Oil and gas assets
Right-of-use assets 69287135.98 71210415.37
Intangible assets 971163382.27 975295916.08
Development costs 21182267.28 16870310.70
Goodwill 22196735.11 22196735.11
Long-term prepaid expense 319234633.70 297497383.39
Deferred income tax assets 855134135.28 725315725.10
Other non-current assets 1106273348.06 2648530490.12
Total non-current assets 18649680636.52 19272802525.43
Total assets 39312730372.55 39874520771.26
Current liabilities:
Short-term borrowings 10090194886.59 9920675121.08
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1133188165.45 1116336958.91
Accounts payable 2643426810.42 3784315091.41
Advances from customers
Contract liabilities 711366769.35 652910408.02
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 181829820.35 410747084.80
Taxes payable 275168869.12 295825170.41
Other payables 1392145413.87 1788177748.59
Including: Interest payable 88023792.80 174383177.08
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 1071913219.84 5089586269.32
Other current liabilities 162378254.97 109742188.24
Total current liabilities 17661612209.96 23168316040.78
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 8245446057.26 3529140539.09
Bonds payable 2295579140.50 2293698899.30
Including: Preferred shares
Perpetual bonds
Lease liabilities 51616953.84 42532869.63
Long-term payables 136400514.66 140687570.78
Long-term employee benefits payable 5029726.81 5111296.75
Provisions 106354249.82 106276535.85
Deferred income 262481408.60 206302424.92
Deferred income tax liabilities 79178233.81 76894581.97
Other non-current liabilities 85210503.30 104610663.76
Total non-current liabilities 11267296788.60 6505255382.05
Total liabilities 28928908998.56 29673571422.83
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 366832114.89 234389963.10
55Konka Group Co. Ltd. Interim Report 2022
Less: Treasury stock
Other comprehensive income -17046757.46 -20336087.87
Specific reserve
Surplus reserves 1244180364.24 1244180364.24
General reserve
Retained earnings 5281519957.37 5229098788.94
Total equity attributable to owners of the Company as the parent 9283431087.04 9095278436.41
Non-controlling interests 1100390286.95 1105670912.02
Total owners’ equity 10383821373.99 10200949348.43
Total liabilities and owners’ equity 39312730372.55 39874520771.26
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Guo Zhihua
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2022 1 January 2022
Current assets:
Monetary assets 4817401116.88 4809203282.52
Held-for-trading financial assets
Derivative financial assets
Notes receivable 323066626.61 912584879.70
Accounts receivable 5580066984.48 4468684877.11
Accounts receivable financing 6250000.00
Prepayments 1392618920.86 1617640913.05
Other receivables 10250972249.22 10925066231.53
Including: Interest receivable 2907863.11 2002526.91
Dividends receivable 388722154.83 383943256.80
Inventories 235132046.82 192035723.31
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1722570208.46 1736172492.35
Total current assets 24321828153.33 24667638399.57
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 8925016873.83 8633142223.64
Investments in other equity instruments 17940215.36 17940215.36
Other non-current financial assets 200326093.02 200326093.02
Investment property 447656127.44 455475442.43
Fixed assets 393714561.09 398611899.13
Construction in progress 335371763.94 304489347.00
Productive living assets
Oil and gas assets
Right-of-use assets 2682250.80 4023376.21
Intangible assets 66088328.80 55814854.54
Development costs
Goodwill
Long-term prepaid expense 31219743.56 31718868.00
Deferred income tax assets 792018584.35 711814124.48
Other non-current assets
Total non-current assets 11212034542.19 10813356443.81
Total assets 35533862695.52 35480994843.38
Current liabilities:
56Konka Group Co. Ltd. Interim Report 2022
Short-term borrowings 3838087799.15 4259749597.92
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 673466004.28 1126421923.99
Accounts payable 8982213162.58 8297778584.91
Advances from customers
Contract liabilities 656157473.78 740817658.30
Employee benefits payable 47155667.20 128148938.08
Taxes payable 4356902.37 8022098.02
Other payables 4011175314.75 4155006946.60
Including: Interest payable 87444401.92 171516416.71
Dividends payable
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 863147551.20 4715415917.78
Other current liabilities 11067091.64 11124209.72
Total current liabilities 19086826966.95 23442485875.32
Non-current liabilities:
Long-term borrowings 7748347100.29 3161298604.12
Bonds payable 2295579140.50 2293698899.30
Including: Preferred shares
Perpetual bonds
Lease liabilities 481296.00 1664232.11
Long-term payables
Long-term employee benefits payable
Provisions 680462.71 572097.48
Deferred income 34128189.15 36243964.61
Deferred income tax liabilities
Other non-current liabilities 10255577.23 43677187.49
Total non-current liabilities 10089471765.88 5537154985.11
Total liabilities 29176298732.83 28979640860.43
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 243139144.39 110696992.60
Less: Treasury stock
Other comprehensive income -1500000.00 -1500000.00
Specific reserve
Surplus reserves 1260024039.76 1260024039.76
Retained earnings 2447955370.54 2724187542.59
Total owners’ equity 6357563962.69 6501353982.95
Total liabilities and owners’ equity 35533862695.52 35480994843.38
3. Consolidated Income Statement
Unit: RMB
Item H1 2022 H1 2021
1. Revenue 16895470276.81 21810161873.08
Including: Operating revenue 16895470276.81 21810161873.08
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 17954723815.95 22632427029.23
Including: Cost of sales 16482440621.84 20817175713.78
Interest expense
Handling charge and commission expense
Surrenders
57Konka Group Co. Ltd. Interim Report 2022
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 53284971.18 44456361.94
Selling expense 560225684.28 667662036.47
Administrative expense 354308684.51 359053667.07
R&D expense 237348526.56 284663467.26
Finance costs 267115327.58 459415782.71
Including: Interest expense 465576348.06 488330464.76
Interest income 109353054.39 78303181.42
Add: Other income 343737322.91 720696356.02
Return on investment (“-” for loss) 737803536.05 322244312.89
Including: Share of profit or loss of joint ventures and associates 59402481.72 19335816.88
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) -638799.36 40362513.73
Credit impairment loss (“-” for loss) -78608313.56 -71392178.06
Asset impairment loss (“-” for loss) -13309988.75 -29538732.82
Asset disposal income (“-” for loss) 12782328.52 88668.35
3. Operating profit (“-” for loss) -57487453.33 160195783.96
Add: Non-operating income 30492741.65 21618277.79
Less: Non-operating expense 3860945.80 6793873.14
4. Profit before tax (“-” for loss) -30855657.48 175020188.61
Less: Income tax expense -88858864.36 84263268.37
5. Net profit (“-” for net loss) 58003206.88 90756920.24
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 58003206.88 90756920.24
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
parent 172818438.83 85449919.57
5.2.1 Net profit attributable to non-controlling interests -114815231.95 5307000.67
6. Other comprehensive income net of tax 4109281.36 -1547270.99
Attributable to owners of the Company as the parent 3289330.41 -583043.66
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 3289330.41 -583043.66
6.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method -38929.34 1486086.18
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-
denominated financial statements 3328259.75 -2069129.84
6.2.7 Other
58Konka Group Co. Ltd. Interim Report 2022
Attributable to non-controlling interests 819950.95 -964227.33
7. Total comprehensive income 62112488.24 89209649.25
Attributable to owners of the Company as the parent 176107769.24 84866875.91
Attributable to non-controlling interests -113995281.00 4342773.34
8. Earnings per share
8.1 Basic earnings per share 0.0718 0.0355
8.2 Diluted earnings per share 0.0718 0.0355
Legal representative: Zhou Bin CFO: Li Chunlei
Head of the financial department: Guo Zhihua
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2022 H1 2021
1. Operating revenue 937174806.46 1201381406.70
Less: Cost of sales 955576781.51 1079261558.34
Taxes and surcharges 4788176.20 2722585.37
Selling expense 126864858.90 153803101.46
Administrative expense 112153504.59 129288020.36
R&D expense 51468275.26 21919059.86
Finance costs 162133403.85 185312072.03
Including: Interest expense 431671720.01 395636089.83
Interest income 175006649.97 249552400.35
Add: Other income 16852496.81 31506992.96
Return on investment (“-” for loss) 231113070.86 196794318.43
Including: Share of profit or loss of joint ventures and associates 76488083.68 6396453.37
Income from the derecognition of financial assets at amortized
cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 1656645.84
Credit impairment loss (“-” for loss) -23046305.82 -86149702.67
Asset impairment loss (“-” for loss) -4024458.06 -2818595.77
Asset disposal income (“-” for loss) 6069332.66
2. Operating profit (“-” for loss) -248846057.40 -229935331.93
Add: Non-operating income 13060831.55 4699664.41
Less: Non-operating expense 254158.77 5616310.83
3. Profit before tax (“-” for loss) -236039384.62 -230851978.35
Less: Income tax expense -80204459.87 -59671308.58
4. Net profit (“-” for net loss) -155834924.75 -171180669.77
4.1 Net profit from continuing operations (“-” for net loss) -155834924.75 -171180669.77
4.2 Net profit from discontinued operations (“-” for net loss)
5. Other comprehensive income net of tax 1182217.31
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income that will not be reclassified to
profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other equity
instruments
5.1.4 Changes in the fair value arising from changes in own credit
risk
5.1.5 Other
5.2 Items that will be reclassified to profit or loss 1182217.31
5.2.1 Other comprehensive income that will be reclassified to
profit or loss under the equity method 1486086.18
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
59Konka Group Co. Ltd. Interim Report 2022
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 -303868.87
5.2.7 Other
6. Total comprehensive income -155834924.75 -169998452.46
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2022 H1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 16657583444.03 20963019142.28
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 280376794.53 259574846.93
Cash generated from other operating activities 753959635.59 984633539.35
Subtotal of cash generated from operating activities 17691919874.15 22207227528.56
Payments for commodities and services 15956086181.59 20801856591.59
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in interbank
loans granted
Payments for claims on original insurance contracts
Net increase in interbank loans granted
Interest handling charges and commissions paid
Policy dividends paid
Cash paid to and for employees 1001094352.68 1040180023.02
Taxes paid 272856476.27 571610951.43
Cash used in other operating activities 883142370.34 1078341184.55
Subtotal of cash used in operating activities 18113179380.88 23491988750.59
Net cash generated from/used in operating activities -421259506.73 -1284761222.03
2. Cash flows from investing activities:
Proceeds from disinvestment 311914738.68 242490592.58
Return on investment 66252680.29 79850437.97
Net proceeds from the disposal of fixed assets intangible assets
and other long-lived assets 823875.00 233374028.57
Net proceeds from the disposal of subsidiaries and other
business units 297094350.04 133143680.12
Cash generated from other investing activities 2385626424.39 726997513.51
Subtotal of cash generated from investing activities 3061712068.40 1415856252.75
Payments for the acquisition of fixed assets intangible assets
and other long-lived assets 2368866405.13 2434111266.54
Payments for investments 281204526.06 334832168.49
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units 96500000.00
Cash used in other investing activities 297319897.73 335799856.00
Subtotal of cash used in investing activities 2947390828.92 3201243291.03
60Konka Group Co. Ltd. Interim Report 2022
Net cash generated from/used in investing activities 114321239.48 -1785387038.28
3. Cash flows from financing activities:
Capital contributions received 73710000.00 82672396.60
Including: Capital contributions by non-controlling interests to
subsidiaries 73710000.00 82672396.60
Borrowings raised 13247484343.89 11408374380.36
Cash generated from other financing activities 98773506.85 595358784.49
Subtotal of cash generated from financing activities 13419967850.74 12086405561.45
Repayment of borrowings 12164709671.44 7054124522.30
Interest and dividends paid 629096420.22 612510498.19
Including: Dividends paid by subsidiaries to non-controlling
interests 7497000.00
Cash used in other financing activities 413488589.33 480205100.51
Subtotal of cash used in financing activities 13207294680.99 8146840121.00
Net cash generated from/used in financing activities 212673169.75 3939565440.45
4. Effect of foreign exchange rates changes on cash and cash
equivalents 29437680.94 -7488067.32
5. Net increase in cash and cash equivalents -64827416.56 861929112.82
Add: Cash and cash equivalents beginning of the period 5968347219.03 4298056113.24
6. Cash and cash equivalents end of the period 5903519802.47 5159985226.06
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2022 H1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 2354844176.86 1579711912.72
Tax rebates 86941251.18 125466130.99
Cash generated from other operating activities 97266687.71 253268585.04
Subtotal of cash generated from operating activities 2539052115.75 1958446628.75
Payments for commodities and services 2958268595.49 2203917150.41
Cash paid to and for employees 177343007.79 186615478.74
Taxes paid 8874050.17 5362665.96
Cash used in other operating activities 570856154.42 315831641.28
Subtotal of cash used in operating activities 3715341807.87 2711726936.39
Net cash generated from/used in operating activities -1176289692.12 -753280307.64
2. Cash flows from investing activities:
Proceeds from disinvestment 243681401.96 336545500.00
Return on investment 9191193.60 7738365.75
Net proceeds from the disposal of fixed assets intangible assets
and other long-lived assets 2335.00 208313.77
Net proceeds from the disposal of subsidiaries and other business
units
Cash generated from other investing activities 4144985356.98 3061287812.44
Subtotal of cash generated from investing activities 4397860287.54 3405779991.96
Payments for the acquisition of fixed assets intangible assets
and other long-lived assets 113204917.61 100219361.16
Payments for investments 181192000.00 416340000.00
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 3667215872.05 3653620787.61
Subtotal of cash used in investing activities 3961612789.66 4170180148.77
Net cash generated from/used in investing activities 436247497.88 -764400156.81
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 11015317707.33 7831733994.04
Cash generated from other financing activities 6900804389.29 4872687703.97
Subtotal of cash generated from financing activities 17916122096.62 12704421698.01
Repayment of borrowings 9787500000.00 5460556762.28
Interest and dividends paid 569130713.71 555580595.63
61Konka Group Co. Ltd. Interim Report 2022
Cash used in other financing activities 6871379554.34 5048804238.24
Subtotal of cash used in financing activities 17228010268.05 11064941596.15
Net cash generated from/used in financing activities 688111828.57 1639480101.86
4. Effect of foreign exchange rates changes on cash and cash
equivalents 41903.92 -524306.83
5. Net increase in cash and cash equivalents -51888461.75 121275330.58
Add: Cash and cash equivalents beginning of the period 4682608814.76 2910762592.99
6. Cash and cash equivalents end of the period 4630720353.01 3032037923.57
62Konka Group Co. Ltd. Interim Report 2022
7. Consolidated Statements of Changes in Owners’ Equity
H1 2022 Unit: RMB
H1 2022
Equity attributable to owners of the Company as the parent
Item Other equity instruments Less: Spe GenShare Prefer Perpet Treas Other Ot Non-controlling
capital red ual Oth Capital reserves ury comprehensive
cific eral
rese Surplus reserves reser Retained earnings he Subtotal interests
Total owners’ equity
shares bonds er stock income rve ve r
1. Balance as at the end of the period 240794
of prior year 5408.00 234389963.10 -20336087.87 1244180364.24 5229098788.94 9095278436.41 1105670912.02 10200949348.43
Add: Adjustment for change in
accounting policy
Adjustment for correction of previous
error
Adjustment for business combination
under common control
Other adjustments
2. Balance as at the beginning of the 240794
Reporting Period 5408.00 234389963.10 -20336087.87 1244180364.24 5229098788.94 9095278436.41 1105670912.02 10200949348.43
3. Increase/ decrease in the period (“-”
for decrease) 132442151.79 3289330.41 52421168.43 188152650.63 -5280625.07 182872025.56
3.1 Total comprehensive income 3289330.41 172818438.83 176107769.24 -113995281.00 62112488.24
3.2 Capital increased and reduced by
owners 132442151.79 132442151.79 109449655.93 241891807.72
3.2.1 Ordinary shares increased by
owners 73710000.00 73710000.00
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 132442151.79 132442151.79 35739655.93 168181807.72
3.3 Profit distribution -120397270.40 -120397270.40 -735000.00 -121132270.40
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 -735000.00 -121132270.40
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
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 240794
Reporting Period 5408.00 366832114.89 -17046757.46 1244180364.24 5281519957.37 9283431087.04 1100390286.95 10383821373.99
63Konka Group Co. Ltd. Interim Report 2022
H1 2021
Unit: RMB
H1 2021
Equity attributable to owners of the Company as the parent
Item Other equity instrumentsShare Perpet Capital Less: Other Specifi Non-controlling
capital Preferre ual Oth reserves Treasur comprehensive c Surplus reserves
General Retained earnings Othe Subtotal interests Total owners’ equity
d shares bonds er y stock income reserve
reserve r
1. Balance as at the end of the period 2407945 230185310.0
of prior year 408.00 9 -16583042.42 1211721109.67 4595371391.63 8428640176.97 2292254947.67 10720895124.64
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Adjustment for business combination
under common control
Other adjustments
2. Balance as at the beginning of the 2407945 230185310.0
Reporting Period 408.00 9 -16583042.42 1211721109.67 4595371391.63 8428640176.97 2292254947.67 10720895124.64
3. Increase/ decrease in the period (“-”
for decrease) 4030393.82 -583043.66 -155344621.23 -151897271.07 24865602.00 -127031669.07
3.1 Total comprehensive income -583043.66 85449919.57 84866875.91 4342773.34 89209649.25
3.2 Capital increased and reduced by
owners 4030393.82 4030393.82 20522828.66 24553222.48
3.2.1 Ordinary shares increased by
owners 12701396.58 12701396.58
3.2.2 Capital increased by holders of
other equity instruments
3.2.3 Share-based payments included
in owners’ equity
3.2.4 Other 4030393.82 4030393.82 7821432.08 11851825.90
3.3 Profit distribution -240794540.80 -240794540.80 -240794540.80
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to general
reserve
3.3.3 Appropriation to owners (or
shareholders) -240794540.80 -240794540.80 -240794540.80
3.3.4 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share
capital) from capital reserves
3.4.2 Increase in capital (or share
capital) from surplus reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined benefit
schemes transferred to retained
earnings
3.4.5 Other comprehensive income
transferred to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the 2407945 234215703.9
Reporting Period 408.00 1 -17166086.08 1211721109.67 4440026770.40 8276742905.90 2317120549.67 10593863455.57
64Konka Group Co. Ltd. Interim Report 2022
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2022
Unit: RMB
H1 2022
Item Other equity instruments OtherShare capital Preferred Perpetua Less: Treasury SpecificOther Capital reserves stock comprehensive reserve Surplus reserves Retained earnings
Othe Total owners’ equity
shares l bonds income r
1. Balance as at the end of the period of
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
2. Balance as at the beginning of the
Reporting Period 2407945408.00 110696992.60 -1500000.00 1260024039.76 2724187565.69 6501354006.05
3. Increase/ decrease in the period (“-” for
decrease) 132442151.79 -276232195.15 -143790043.36
3.1 Total comprehensive income -155834924.75 -155834924.75
3.2 Capital increased and reduced by
owners 132442151.79 132442151.79
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 132442151.79 132442151.79
3.3 Profit distribution -120397270.40 -120397270.40
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or
shareholders) -120397270.40 -120397270.40
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital)
from capital reserves
3.4.2 Increase in capital (or share capital)
from surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income
transferred to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting
Period 2407945408.00 243139144.39 -1500000.00 - 1260024039.76 2447955370.54 6357563962.69
H1 2021
Unit: RMB
H1 2021
Item Share capital Other equity instruments Capital reserves Less: Other SpecificPreferred Perpetual Other Treasury comprehensive reserve Surplus reserves Retained earnings Other Total owners’ equity
65Konka Group Co. Ltd. Interim Report 2022
shares bonds stock income
1. Balance as at the end of the period of prior year 2407945408.00 112570352.72 -2682217.31 1227564785.19 2352385005.09 6097783333.69
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments 1017.42 1017.42
2. Balance as at the beginning of the Reporting Period 2407945408.00 112570352.72 -2682217.31 1227564785.19 2352386022.51 6097784351.11
3. Increase/ decrease in the period (“-” for decrease) -2671625.35 1182217.31 -411975210.57 -413464618.61
3.1 Total comprehensive income 1182217.31 -171180669.77 -169998452.46
3.2 Capital increased and reduced by owners -2671625.35 -2671625.35
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other equity
instruments
3.2.3 Share-based payments included in owners’
equity
3.2.4 Other -2671625.35 -2671625.35
3.3 Profit distribution -240794540.80 -240794540.80
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or shareholders) -240794540.80 -240794540.80
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital) from
capital reserves
3.4.2 Increase in capital (or share capital) from
surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income transferred to
retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2407945408.00 109898727.37 -1500000.00 1227564785.19 1940410811.94 5684319732.50
66Konka Group Co. Ltd. Interim Report 2022
I. Company Profile
1. Establishment
Konka Group Co. Ltd. (hereinafter referred to as “Company” or “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 30 June 2022 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 the production and sales of colour TVs white goods etc.; as
well as the operation of industry trade business environmental protection semi-conductor etc.
4. The financial statements contained herein have been approved for issue by the Board of
Directors of the Company on 23 August 2022.II. Consolidation scope
The Company has a total of 115 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 increased by 5 households including Jiangxi Konka High-tech Park Operation and
Management Co. Ltd. Shangrao Konka Electronic Technology Innovation Co. Ltd. and
Guizhou Konka New Energy Material Technology Co. Ltd. and decreased by 10 households
including Xi'an Huasheng Jiacheng Real Estate Co. Ltd. and Shanghai Xinfeng Zhuoqun PCB
Co. Ltd. due to losing control or cancellation compared to the same period of last year.For details please refer to Note 7 “Changes in the consolidation scope” and Note 8 "Equity in
Other Entities".
2. A check list of corporate names and their abbreviations mentioned in this Report
No. Corporate name Abbreviation
1 Shenzhen Konka Electronics Technology Co. Ltd. Electronics Technology
67Konka Group Co. Ltd. Interim Report 2022
No. Corporate name Abbreviation
2 Anhui Konka Zhilian E-Commerce Co. Ltd. Anhui Zhilian
3 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 Youzhihui Technology Co. Ltd. Youzhihui
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
Chuzhou Konka Precision Intelligent Manufacturing Technology Co. Chuzhou Konka
12
Ltd.
13 Xi'an Huasheng Jiacheng Real Estate Co. Ltd. Xi'an Huasheng
14 GuangDong XingDa HongYe Electronic Co. Ltd. XingDa HongYe
15 Shanghai Xinfeng Zhuoqun PCB Co. Ltd. Shanghai Xinfeng
16 Shenzhen Konka Circuit Co. Ltd. Konka Circuit
Suining Konka Flexible Electronic Technology Co. Ltd. Konka Flexible Electronic
17
Suining Konka Hongye Electronics Co. Ltd. Konka Hongye Electronics
18
19 Boluo Konka Precision Technology Co. Ltd. Boluo Precision
20 Boluo Konka PCB Co. Ltd. Boluo Konka
21 Anhui Konka Tongchuang Electrical Appliances Co. Ltd. Anhui Tongchuang
22 Jiangsu Konka Smart Electrical Appliances Co. Ltd. Jiangsu Konka Smart
23 Anhui Konka Electrical Appliance Technology Co. Ltd. Anhui Electrical Appliance
24 Henan Frestec Refrigeration Appliance Co. Ltd. Frestec Refrigeration
25 Henan Frestec Electrical Appliances Co. Ltd. Frestec Electrical Appliances
26 Henan Frestec Household Appliances Co. Ltd. Frestec Household Appliances
27 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home
28 Shenzhen Konka Investment Holdings Co. Ltd. Konka Investment
68Konka Group Co. Ltd. Interim Report 2022
No. Corporate name Abbreviation
29 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka Technology Park
30 Shenzhen Konka Capital Equity Investment Management Co. Ltd. Konka Capital
31 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong
32 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial
33 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology
34 Konka Factoring (Shenzhen) Co. Ltd. Konka Factoring
35 Beijing Konka Electronic Co. Ltd. Beijing Konka Electronic
36 Konka Financial Leasing (Tianjin) Co. Ltd. Konka Leasing
37 Suining Konka Industrial Park Development Co. Ltd. Suining Konka Industrial Park
Suining Electronic Technological
38 Suining Konka Electronic Technological Innovation Co. Ltd.
Innovation
39 Shanghai Konka Industrial Co. Ltd. Shanghai Konka
40 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin
41 Shenzhen Konka Mobile Interconnection Technology Co. Ltd. Mobile Interconnection
42 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka
43 Yibin Konka Smart Technology Co. Ltd. Yibin Smart
44 Shenzhen KONSEMI Co. Ltd. Shenzhen KONSEMI
45 Chongqing Konka Technology Development Co. Ltd. Chongqing Konka
46 Hefei KONSEMI Storage Technology Co. Ltd. Hefei KONSEMI
47 Hefei Yihe Electronic Co. Ltd. Yihe Electronic
48 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory (Shenzhen)
49 Kowin Memory Technology (Hong Kong) Co. Limited Kowin Memory (Hong Kong)
50 Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd. Konka Xinyun Semiconductor
51 Konka Industrial and Trade Technology (Shenzhen) Co. Ltd. Industrial and Trade Technology
52 Shenzhen Nianhua Enterprise Management Co. Ltd. Shenzhen Nianhua
53 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Huazhong
54 Shenzhen Wankaida Science and Technology Co. Ltd. Wankaida
Shenzhen Chuangzhi Electrical
55 Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.
Appliances
69Konka Group Co. Ltd. Interim Report 2022
No. Corporate name Abbreviation
56 Suining Jiarun Property Co. Ltd. Suining Jiarun Property
57 Anhui Konka Electronic Co. Ltd. Anhui Konka
58 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade
59 Shenzhen Konka Telecommunications Technology Co. Ltd. Telecommunication Technology
60 Konka Mobility Co. Limited Konka Mobility
61 Dongguan Konka Electronic Co. Ltd. Dongguan Konka
62 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart
Chongqing Konka Optoelectronic Technology Research Institute Co.Chongqing Optoelectronic
63
Ltd. Technology Research Institute
64 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun
65 Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd. Yibin Kangrun Medical
Yibin Kangrun Environmental Protection Power Generation Co. Ltd. Yibin Kangrun Environmental
66
Protection
67 Ningbo Khr Electric Appliance Co. Ltd. Ningbo Khr Electric Appliance
68 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka
69 Jiangxi High Transparent Substrate Material Technology Co. Ltd. Jiangxi High Transparent Substrate
70 Jiangsu Konka Special Material Technology Co. Ltd. Jiangsu Konka Special Material
71 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystalline
72 Konka Huanjia Environmental Technology Co. Ltd. Konka Huanjia
73 Konka Huanjia (Henan) Environmental Technology Co. Ltd. Konka Huanjia (Henan)
74 Shaanxi Konka Intelligent Appliance Co. Ltd. Shaanxi Konka Intelligent
75 Shenzhen Konka Pengrun Technology & Industry Co. Ltd. Pengrun Technology
76 Jiaxin Technology Co. Ltd. Jiaxin Technology
77 Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd. Konka Ronghe
78 Chongqing Kangxingrui Environmental Technology Co. Ltd. Chongqing Kangxingrui
Chongqing Kangxingrui Scraped Automobile Recycling Co. Ltd. Chongqing Kangxingrui
79
Automobile Recycling
80 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune
81 Jiali International (Hong Kong) Limited Jiali International
70Konka Group Co. Ltd. Interim Report 2022
No. Corporate name Abbreviation
82 Sichuan Kangjiatong Technology Co. Ltd. Kangjiatong
83 Kanghong (Yantai) Environmental Technology Co. Ltd. Kanghong (Yantai) Environmental
84 Jiangkang (Shanghai) Technology Co. Ltd. Jiangkang (Shanghai) Technology
85 Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd. Konka Intelligent Manufacturing
86 Yantai Laikang Industrial Development Co. Ltd. Yantai Laikang
87 Hainan Konka Material Technology Co. Ltd. Konka Material
88 Konka Ventures Development (Shenzhen) Co. Ltd. Konka Ventures
89 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator
90 Yantai Konka Healthcare Enterprise Service Co. Ltd. Yantai Konka
Chengdu Anren Konka Cultural and Creative Incubator Management
91 Chengdu Anren
Co. Ltd.
92 Guiyang Konka Enterprise Service Co. Ltd. Konka Enterprise Service
93 Shenzhen Konka Eco-Development Investment Co. Ltd. Konka Eco-Development
94 Konka (Europe) Co. Ltd. Konka Europe
95 Hong Kong Konka Limited Hong Kong Konka
96 Hongdin International Trading Limited Hongdin Trading
97 Konka North America LLC Konka North America
98 Kanghao Technology Co. Ltd. Kanghao Technology
99 Hongdin Invest Development Limited Hongdin Invest
Chain Kingdom Memory Technologies Co. Limited Chain Kingdom Memory
100
Technologies
Chain Kingdom Memory Technologies (Shenzhen) Co. Limited Chain Kingdom Memory
101
Technologies (Shenzhen)
102 Hongjet (Hong Kong) Company Limited Hongjet
103 Xi'an Feihe Real Estate Development Co. Ltd. Xi'an Feihe
Chongqing Xinyuan Semiconductor Co. Ltd. Chongqing Xinyuan
104
Semiconductor
105 Jiangxi Konka Industrial Park Development Co. Ltd. Jiangxi Konka Industrial Park
106 Ruichang Kangrui Real Estate Co. Ltd. Ruichang Kangrui Real Estate
71Konka Group Co. Ltd. Interim Report 2022
No. Corporate name Abbreviation
107 Konka Industrial Development (Wuhan) Co. Ltd. Industrial development in Wuhan
108 Shenzhen Kangxiaojia Digital Information Technology Co. Ltd. Kangxiaojia Digital
109 Shenzhen Yijiakang Smart Terminal Technology Co. Ltd. Yijiakang Smart Terminal
Guizhou Kangkai Material Technology Co. Ltd. Guizhou Kangkai Material
110
Technology
Guizhou Konka New Material Technology Co. Ltd. Guizhou Konka New Material
111
Technology
112 Guizhou Kanggui Energy Co. Ltd. Guizhou Kanggui Energy
113 Guangdong Xinwei Semiconductor Co. Ltd. Guangdong Xinwei
114 Chongqing Kangxingrui Renewable Resources Co. Ltd. Kangxinrun Renewable Resources
Guizhou Kanggui Material Technology Co. Ltd. Guizhou Kanggui Material
115
Technology
116 Sichuan Chengrui Real Estate Co. Ltd. Sichun Chengrui
117 Chongqing Jiarun Real Estate Co. Ltd. Chongqing Jiarun
118 Nantong Kanghai Technology Industry Development Co. Ltd. Nantong Kanghai
119 Chongqing Kangyiyun Business Operation Management Co. Ltd. Chongqing Kangyiyun
Shenzhen Kanghong Dongsheng Investment Partnership (LimitedKanghong Dongsheng
120
Partnership)
121 Jiangxi Konka High-tech Park Operation and Management Co. Ltd. Jiangxi Konka High-tech Park
Shangrao Konka Electronic
122 Shangrao Konka Electronic Technology Innovation Co. Ltd. Technology Innovation
123 Guizhou Konka New Energy Material Technology Co. Ltd. Guizhou Konka New Energy
124 Zhejiang Konka Electronic Technology Co. Ltd. Zhejiang Konka Electronic
Zhejiang Konka Technology
125 Zhejiang Konka Technology Industry Development Co. Ltd. Industry
III. Basis for the Preparation of Financial Statements
1. Basic for the preparation
With the going-concern assumption as the basis and based on transactions and other events that
actually occurred the Group prepared financial statements in accordance with the Accounting
Standards for Business Enterprises issued by the Ministry of Finance and other regulations aswell as the accounting policies and estimations stipulated in the Note IV “Significant AccountingPolicies and Estimations”.
72Konka Group Co. Ltd. Interim Report 2022
2. Going-concern
The Group has a recent history of profitable operations supported by financial resources and considers
it reasonable to prepare the financial statements on a going concern basis.IV. Important Accounting Policies and Estimations
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 and completely present the
Group’s financial positions business results and cash flows and other relevant information.
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. Accounting Treatment Methods for Business Combinations under the Same Control or not
under the Same Control
As the combining party the assets and liabilities obtained by the Group in a business combination
under the same control shall be measured on the basis of their carrying value in the final
controlling party on the combining date. As for the balance between the carrying value of the net
assets obtained and the carrying value of the consideration paid by it the capital reserve shall be
adjusted. If the capital reserve is not sufficient to be offset the retained earnings shall be adjusted.The identifiable assets liabilities and contingent liabilities of the acquiree acquired in the
business combination under different control shall be measured at fair value on the acquisition
date. The merger cost is the sum of the fair value of cash or non-cash assets liabilities issued or
assumed equity securities issued etc. paid by the Group on the purchase date to gain control over
the purchased party and all directly related expenses incurred in the business combination (The
merge cost of business combination realized step by step through multiple transactions is the sum
of every single transaction’s cost). The balance that the combined cost greater than the fair value
share of the identifiable net assets of the purchased party obtained in the combination shall be
recognized as goodwill; When the merger cost is less than the fair value share of the identifiable
net assets of the acquiree acquired in the merger the fair value of all identifiable assets liabilities
73Konka Group Co. Ltd. Interim Report 2022
and contingent liabilities acquired in the merger and non-cash assets of the merger consideration
or equity securities issued etc. shall be reviewed first. After review if the merger cost is still less
than the fair value share of the identifiable net assets of the acquiree acquired in the merger the
difference shall be included in the non-operating income of the merger period.
6. Methods for Preparing Consolidated Financial Statements
The scope of consolidation includes all controlled subsidiaries and structural entities.The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Group during the preparation of the consolidated financial
statements where the accounting policies and the accounting periods are inconsistent between the
Group and subsidiaries.All significant internal transactions current balances and unrealized profits within the scope of
consolidation shall be offset when preparing the consolidated statement. The shares of the
subsidiary's owner's equity that do not belong to the parent Group and the shares of minority
shareholders' equity in current net profit and loss other comprehensive income and total
comprehensive income shall be respectively listed in the consolidated financial statement
"Minority shareholders' equity minority shareholders' profit and loss other comprehensive
income that belongs to minority shareholders and total comprehensive income that belongs to
minority shareholders".For subsidiaries acquired through merger of enterprises under the same control their operating
results and cash flows are included in the consolidated financial statements from the beginning of
the current merger period. When preparing the comparative consolidated financial statements the
relevant items in the financial statements of the previous year shall be adjusted as if the
consolidated reporting entity had existed since the final controlling party began to control it.The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired if the equity of the invested organization
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
the same control is acquired step by step through multiple transactions and finally form the
business combination when preparing the consolidated statement it shall be deemed as the
adjustment is made in the current state when the final controlling party starts to control. And
when compiling the comparative report the assets and liabilities of the merged party shall be
merged into the comparative statement of the consolidated financial statements of the
consolidated 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
74Konka Group Co. Ltd. Interim Report 2022
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 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.
75Konka Group Co. Ltd. Interim Report 2022
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.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
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.
8. 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.
9. Foreign Currency Businesses and Translation of Foreign Currency Financial Statements
(1) Foreign currency transaction
As for foreign currency transaction the Group converted the foreign currency amount into RMB
amount at the exchange rate at the beginning of the month of transaction occurrence date
(normally referred to as the central parity rate of foreign exchange rate on the same day published
by the People’s Bank of China the same below). On the balance sheet date the monetary items in
foreign currency were converted into RMB at the spot exchange rate on balance sheet date.Except the exchange difference arising from special foreign-currency borrowing for the purpose
of construction or production of assets meeting capitalization conditions treated in the principle of
capitalization the conversion difference was directly included in the current profits and losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot
exchange rate on balance sheet date; except for “undistributed profit” owner’s equity items were
76Konka Group Co. Ltd. Interim Report 2022
converted at the sport exchange rate at the time of business occurrence; income and expenditure
items in income statement were converted at the average exchange rate for the period (monthly
average exchange rate) of the transaction occurrence date. The conversion difference of foreign
currency statements arising from the aforementioned conversion was presented in other
comprehensive income item. The foreign currency cash flow was converted at the average
exchange rate for the period (monthly average exchange rate) of the cash flow occurrence date.The amount of exchange rate change influence on cash was independently presented in cash flow
statement.
10. Financial Assets and Financial Liabilities
The Group recognizes a financial asset or liability when it becomes a party of the relevant
financial instrument contract.
(1) Financial assets
1) Classification recognition and measurement of financial assets
The 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
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
77Konka Group Co. Ltd. Interim Report 2022
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 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.
2) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met:
1) the rights to receive cash flows from the asset have expired; 2) the enterprise has transferred its
rights to receive cash flows from the asset to a third party under a pass-through arrangement; or 3)
the enterprise has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset but has transferred control of the asset.If the overall transfer of financial assets fulfills the requirements for derecognition the difference
78Konka Group Co. Ltd. Interim Report 2022
between the book value of the transferred financial assets and the sum of the consideration
received due to the transfer and the corresponding derecognition part of the accumulated amount
of fair value changes originally directly included in other comprehensive income (the contract
terms involving the transferred financial assets stipulate that the cash flow generated on a specific
date is only the payment of the principal and interest based on the unpaid principal amount) shall
be included in the current profits and losses.If the partial transfer of financial assets satisfies the conditions for termination confirmation the
entire book value of the transferred financial assets will be apportioned between the termination
confirmation portion and the non-termination confirmation portion according to their relative fair
values and the consideration received for the transfer And the amount corresponding to the
termination of the recognition of the cumulative amount of changes in fair value originally
included in other comprehensive income that should be apportioned to the derecognition part And
the payment of interest based on the outstanding principal amount) and the difference between
the total book value of the aforesaid financial assets allocated is included in the current profit and
loss.
(2) Financial liabilities
1) Classification recognition and measurement of financial liabilities
The 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.
2) Derecognition of financial liabilities
In case of current obligation of financial liabilities (or partial financial liabilities) being
79Konka Group Co. Ltd. Interim Report 2022
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.
(3) Determination of financial assets and liabilities’ fair value
The Group measured the fair value of financial assets and financial liabilities according to the
price at major market. If major market does not exist the fair value of financial assets and
financial liabilities was measured according to the price at the most advantageous market through
applying valuation technique applicable at the time and with sufficient usable data and other
information support. The inputs for fair value measurement were classified into three levels.Level 1 is the unadjusted quotation of the same assets or liabilities on active market available on
the measurement date. Level 2 is the input of relevant assets or liabilities other than that in level 1
that are observable either directly or indirectly. Level 3 is the unobservable input of relevant
assets or liabilities. The Group preferred level 1 input and applied level 3 input at last. Level 1
input was applicable for listed stock and bond held by the Group level 2 input for financing of
accounts receivable (mainly bank acceptance bill and trade acceptance bill meeting derecognition
requirements after transfer) and level 3 input for other non-current financial assets (unlisted
equity investment held by the Group) and held-for-trading financial assets (mainly financial
products held by the Group). The level attributed to the fair value measurement result was
determined according to the lowest level of the input with much significance to fair value
measurement in general.The Group measured the investment of equity instruments at fair value. However under limited
situation if the recent information for determining the fair value was insufficient or the potential
estimated amount of fair value was in wide range and the cost represented the optimal estimation
of fair value in such range such cost could represent appropriate estimation of fair value in such
range. Such equity instrument investments included: Equity investments held by the Group
measured at fair value with changes included in the current profits and losses with no control
joint control or significance influence; non-trading equity instrument investments were designated
as financial assets measured at fair value through other comprehensive income.
(4) Offsetting financial assets and financial liabilities
The 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
80Konka Group Co. Ltd. Interim Report 2022
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.
(5) 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.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.
11. Impairment of Financial Assets
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
81Konka Group Co. Ltd. Interim Report 2022
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
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.
82Konka Group Co. Ltd. Interim Report 2022
(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.
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
The Accepter shall be the bank with high credit level and low
BankAcceptance
risks
Classified by credit risk of acceptors (the same as accounts
Trade Acceptance
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
Aging Combination This portfolio is accounts receivable with aging as the credit risk
83Konka Group Co. Ltd. Interim Report 2022
Item Basis
feature.Related party combination The accounts receivable within the scope of consolidation
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
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.This combination shall regard other receivables of extremely low
Low Risk Combination risk (including the revolving fund the cash deposit and the guarantee
deposit) as the credit risk feature.Related party
Other receivables within the scope of consolidation.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
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
84Konka Group Co. Ltd. Interim Report 2022
Item Basis
Combination credit risk characteristics
Franchise Regarding the long-term receivables related to the PPP Project as the
Combination credit risk characteristics
17. Inventories
The Group's inventories mainly include raw materials products in process semi-finished
products and entrusted processing materials.The perpetual inventory method is used for inventories. Inventories are priced at the actual cost at
the time of acquisition; the actual cost of inventories is determined by the weighted average
method when inventories are claimed or issued. Low-value consumables and packaging are
amortized through the one-off charge-off method.The net realizable value of inventories of goods that are used directly for sale such as inventory
goods products in process and materials for sale is determined by the estimated selling price of
the inventory minus estimated sale expenses and related taxes; the net realizable value of
inventories of materials held for production is determined by the estimated selling price of the
finished goods produced minus the estimated costs of completion estimated sale expenses and
related taxes.The inventories with various numbers and low unit price shall be made provisions
for depreciation reserves of inventories according to the category of inventories. For inventories
that are produced and sold in the same region with same or similar end use or purposes and hard
to be measured separately from other items it shall be made merger provisions for falling price of
inventories.The net realizable value refers in the ordinary course of business to the account after deducting
the estimated cost of completion estimated sale expense and relevant taxes from the estimated
sale price of inventories. The net realizable value of inventories shall be fixed on the basis of
valid evidence as well as under consideration of purpose of inventories and the effect of events
after balance-sheet-date.After withdrawing the depreciation reserves for inventories if the factors which cause any write-
down of the inventories have disappeared causing the net realizable value of inventories is
higher than its carrying amount; the amount of write-down shall be reversed from the original
amount of depreciation reserve for inventories. The reversed amount shall be included in the
profits and losses of the current period.
18. Contract Assets
(1) Confirmation methods and standards of contract assets
Contract assets refer to the right of the 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
85Konka Group Co. Ltd. Interim Report 2022
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 of determining the expected credit loss of contract assets refer to the description of
11. Financial Asset Impairment 12. Notes Receivable 13. Accounts Receivable.
The 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. 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
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
86Konka Group Co. Ltd. Interim Report 2022
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
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
87Konka Group Co. Ltd. Interim Report 2022
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 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
88Konka Group Co. Ltd. Interim Report 2022
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
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
89Konka Group Co. Ltd. Interim Report 2022
other changes in owner's equity of the investee except net profit and loss other comprehensive
income and profit distribution When the equity method is terminated all of them shall be
transferred into the current investment income.In case of loss of joint control or significant influence on the investee due to the disposal of part
of equity investment the remaining equity after disposal shall be accounted according to the
relevant provisions of the recognition and measurement standards of financial instruments and
the difference between the fair value and the book value of the remaining equity on the date of
loss of joint control or significant influence shall be included in the current profits and losses.When the equity method is terminated the other comprehensive income of the original equity
investment recognized as a result of its accounting with the equity method shall be handled on the
same basis as the investee's direct disposal of the relevant assets or liabilities and carried forward
in proportion. The owner's equity recognized as a result of the changes in the owner's equity of
the investee other than net profit and loss other comprehensive income and profit distribution
shall be carried forward in proportion Transfer to current investment income.If the control over the investee is lost due to the disposal of part of the long-term equity
investment and the residual equity after disposal can jointly control or exert significant influence
on the investee it shall be accounted according to the equity method and the difference between
the book value of the disposal equity and the disposal consideration shall be included in the
investment income and the residual equity shall be regarded as adjusted by the equity method
when it is obtained If the residual equity cannot exercise joint control or exert significant
influence on the investee the accounting treatment shall be carried out according to the relevant
provisions of the recognition and measurement standards of financial instruments. The difference
between the book value of the disposal equity and the disposal consideration shall be included in
the investment income and the difference between the fair value and the book value of the
residual equity on the day of losing control shall be included in the current profits and losses.If the transaction from step-by-step disposal of equity to loss of control right does not belong to
package transaction accounting treatment shall be carried out for each transaction separately. If it
is a "package deal" each transaction will be treated as a transaction of disposal of subsidiaries
and loss of control. However before the loss of control the difference between the disposal price
of each transaction and the book value of the long-term equity investment corresponding to the
disposed equity will be recognized as other comprehensive income and when the control is lost
it will be transferred to the current account of loss of control Period profit and loss
21. Investment Property
The term “investment property” refers to the real estate held for generating rent and/or capital
appreciation. Investment property of the 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
90Konka Group Co. Ltd. Interim Report 2022
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
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.
91Konka Group Co. Ltd. Interim Report 2022
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 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 andStraight-line
20-405-10.002.25-4.75
1 building depreciation
Machinery Straight-line
5-105-10.009.00-19.00
2 equipment depreciation
Electronic Straight-line
3-55-10.0018.00-31.67
3 equipment depreciation
Transportation Straight-line
3-55-10.0018.00-31.67
4 vehicle depreciation
Straight-line
Other equipment 5 5-10.00 18.00-19.00
5 depreciation
The estimated useful life estimated net salvage value and depreciation method of fixed assets are
reviewed at the end of each year. Accounting estimation methods are used when changes are
required.
23. Construction in Progress
On the date when the construction in progress reaches its intended useable state fixed assets are
carried forward at the estimated value based on the project budget cost or actual cost of the
project etc. Depreciation starts from the following month and the difference in the original value
of fixed assets is adjusted after the completion of the final accounting procedures.
24. Borrowing Costs
For incurred borrowing costs which can be directly attributed to fixed assets investment real
estate and inventory that need more than one year of purchasing construction or production
activities to reach the preset usable or sellable status shall be capitalized when the asset
expenditure has occurred the borrowing costs have occurred and the purchasing construction or
production activities necessary for the asset to reach the preset usable or sellable status have
begun; When the acquisition construction or production of assets that meet the capitalization
conditions reach the intended usable or sellable status capitalization is stopped and the
92Konka Group Co. Ltd. Interim Report 2022
borrowing costs incurred thereafter are included in the profits and losses of the current period. If
there is an abnormal interruption in the acquisition construction or production of assets that meet
the capitalization conditions and the interruption lasts for more than 3 consecutive months the
capitalization of borrowing costs will be suspended until the acquisition construction or
production of assets starts again.The to-be-capitalized amount of interests shall be determined in light of the actual interests
incurred of the specially borrowed loan at the present period minus the income of interests earned
on the unused borrowing loans as a deposit in the bank or as a temporary investment; the
enterprise shall calculate and determine the to-be-capitalized amount on the general borrowing by
multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing
used. The capitalization rate shall be calculated and determined in light of the weighted average
interest rate of the general borrowing.
25. 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.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
93Konka Group Co. Ltd. Interim Report 2022
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 the remaining service
life of the leased asset.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.Land use rights are amortized equally over the years from the commencement date of the grant;
intangible assets such as software and patents are amortized equally over the shortest of the
estimated useful life the contractual beneficiary life and the effective life prescribed by law. The
amortization amount is charged to the cost of the related assets and current profit or loss
according to their beneficiaries. The estimated useful life and amortization method of intangible
assets with finite useful lives are reviewed at the end of each year. Accounting estimation
methods are used when changes are required.The main research and development projects of the Group include the performance improvement
project of Mini & Micro LED.
(1) Specific criteria for dividing the research phase and development phase
“Research” means an original and planned investigation to acquire and understand new scientific
or technical knowledge.“Development” means the application of research results or other knowledge to one or more plans
or designs to produce new or substantially improved materials devices products or to obtain
new processes etc. prior to commercial production or use.Expenses for the research phase are charged to current profit or loss as incurred.
(2) Specific criteria for capitalization of development stage expenditures
Expenditures in the development stage are capitalized when the following conditions are met.* It is feasible technically to finish intangible assets for use or sale;
* It is intended to finish and use or sell the intangible assets;
* The usefulness of methods for intangible assets to generate economic benefits shall be proved
including being able to prove that there is a potential market for the products manufactured by
94Konka Group Co. Ltd. Interim Report 2022
applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets will be used internally;
* It is able to finish the development of the intangible assets and able to use or sell the
intangible assets with the support of sufficient technologies financial resources and other
resources;
* The development expenditures of the intangible assets can be reliably measured.
27. Impairment of Long-termAssets
For non-current financial Assets of fixed Assets projects under construction intangible Assets
with limited service life investing real estate with cost model long-term equity investment of
subsidiaries cooperative enterprises and joint ventures the 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. Other intangible Assets of reputation and uncertain service life and other non-
accessible intangible assets should be tested for decrease in value no matter whether it exists.If the recoverable amount is less than carrying value in impairment test results the provision for
impairment of differences should include in impairment loss. Recoverable amounts would be the
higher of net value of asset fair value deducting disposal charges or present value of predicted
cash flow. Asset fair value should be determined according to negotiated sales price of fair trade.If no sales agreement exists but with asset active market fair value should be determined
according to the Buyer’s price of the asset. If no sales agreement or asset active market exists
asset fair value could be acquired on the basis of best information available. Disposal expenses
include legal fees taxes cartage or other direct expenses of merchantable Assets related to asset
disposal. Present value of predicted asset cash flow should be determined by the proper discount
rate according to Assets in service and predicted cash flow of final disposal. Asset depreciation
reserves should be calculated on the basis of single Assets. If it is difficult to predict the
recoverable amounts for single Assets recoverable amounts should be determined according to
the belonging asset group. Asset group is the minimum asset combination producing cash flow
independently.In impairment test carrying value of the business reputation in financial report should be shared
to beneficial asset group and asset group combination in collaboration of business merger. It is
shown in the test that if recoverable amounts of shared business reputation asset group or asset
group combination are lower than book value it should determine the impairment loss.Impairment loss amount should firstly be deducted and shared to the carrying value of business
reputation of asset group or asset group combination then deduct carrying value of all assets
according to proportions of other carrying value of above assets in asset group or asset group
combination except business reputation.After the asset impairment loss is determined recoverable value amounts would not be returned
in future.
95Konka Group Co. Ltd. Interim Report 2022
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
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
96Konka Group Co. Ltd. Interim Report 2022
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 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
97Konka Group Co. Ltd. Interim Report 2022
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
obligation; (3) A reliable estimate can be made of the amount of the obligation.On the balance sheet date an enterprise shall take into full consideration of the risks uncertainty
time value of money and other factors pertinent to the Contingencies to measure the provisions in
accordance with the best estimate of the necessary expenses for the performance of the current
obligation.When all or some of the expenses necessary for the liquidation of an provisions of an enterprise is
expected to be compensated by a third party the compensation should be separately recognized as
an asset only when it is virtually certain that the reimbursement will be obtained. Besides the
amount recognized for the reimbursement should not exceed the carrying value of the estimated
liabilities.
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.
98Konka Group Co. Ltd. Interim Report 2022
(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 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
99Konka Group Co. Ltd. Interim Report 2022
* 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
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
100Konka Group Co. Ltd. Interim Report 2022
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 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
101Konka Group Co. Ltd. Interim Report 2022
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.* 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.
102Konka Group Co. Ltd. Interim Report 2022
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:
(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
103Konka Group Co. Ltd. Interim Report 2022
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 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
104Konka Group Co. Ltd. Interim Report 2022
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
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
105Konka Group Co. Ltd. Interim Report 2022
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
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
106Konka Group Co. Ltd. Interim Report 2022
(1) Changes of accounting policies
No such cases in the Reporting Period.
(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%: Dongguan Konka XingDa
HongYe Xinfeng Microcrystalline Boluo
Konka Precision Boluo Konka Ningbo
Urban Kanghanrui Jiangsu Konka Smart Yibin
The circulating tax actually Kangrun Yibin Kangrun Medical Yibin
maintenance and
paid Kangrun Environmental Protection. Paid at
construction tax 1%: Jiangxi Konka Jiangxi High
Transparent Substrate Jiangkang
(Shanghai) Technology. Paid at 7%: other
subsidiaries.The circulating tax actually
Education surtax 3%
paid
Local education The circulating tax actually 2%
surtax paid
Enterprise income 25%/ See 2.Tax Preference and Approved
Taxable income
tax Documents for details
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Xingda Hongye Wankaida Jiangxi Konka
Jiangxi High Transparent Substrate Chongqing 15%
Kangxingrui Chengdu Konka
Hong Kong Konka Konka Electrical Appliances 16.5%
International Trading Jiali International
107Konka Group Co. Ltd. Interim Report 2022
Name of entity Income tax rate
Kangjietong Jiaxin Technology Jiaxin
Technology Konka Electrical Appliances
Investment Konka Mobility Kowin Memory
(Hong Kong)
Chain Kingdom Memory Technologies 8.25%/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 prepaymentliquidation summary and finance transfer”. It came into force from 1 January 2008. According to
the above methods the Company’s sales branch companies in each area will hand in the
corporate income taxes in advance from 1 January 2008 and will be final settled uniformly by the
Company at the year-end.
2. Tax Preference and Approved Documents
(1) According to the No. 8 announcement in 2021 and No 13 announcement in 2022 issued by
State Taxation Administration: Notice on the implementation of the inclusive tax reduction and
exemption policy for small and micro enterprises the annual taxable income of small and
profitable enterprises is not The portion exceeding RMB1 million will be reduced to 12.5% of the
taxable income and the corporate income tax will be paid at the rate of 20%; the portion of the
annual taxable income exceeding RMB1 million but not exceeding RMB3 million will be reduced
by 25% Include the taxable income and pay corporate income tax at a rate of 20%.
(2) On 14 September 2020 Jiangxi Konka the subsidiary of the Company obtained a high-tech
enterprise certificate jointly issued by Jiangxi Science and Technology Department Jiangxi
Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the State Administration
of Taxation. The certificate number is GR202036000802 and is valid for three years. According to
relevant tax regulations Jiangxi Konka shall enjoy relevant preferential tax policies for high-tech
enterprises for three consecutive years from 2020 to 2022 and pay the enterprise income tax at a
preferential tax rate of 15%.
(3) On 14 September 2020 Jiangxi High Transparent Substrate the subsidiary of the Company
obtained a high-tech enterprise certificate jointly issued by Jiangxi Science and Technology
Department Jiangxi Provincial Department of Finance and Jiangxi Provincial Tax Bureau of the
108Konka Group Co. Ltd. Interim Report 2022
State Administration of Taxation. The certificate number is GR202036000568 and is valid for
three years. According to relevant tax regulations Jiangxi High Transparent Substrate shall enjoy
relevant preferential tax policies for high-tech enterprises for three consecutive years from 2020
to 2022 and pay the enterprise income tax at a preferential tax rate of 15%.
(4) On 11 December 2020 Wankaida the subsidiary of this Company obtained the high-tech
enterprise certificate (certificate No.: GR202044201940) jointly issued by Shenzhen Technology
Innovation Committee Finance Committee of Shenzhen Municipality Shenzhen Taxation Bureau
of SAT with a valid period of three years. According to related taxation regulations Wankaida
enjoys related taxation preferential policies as a high-tech enterprise from 2020 to 2022 and pays
the enterprise income tax as per the preferential tax rate of 15%.
(5) 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%.
(6) In accordance with the Notice on Tax Policy Issues Involved in the Further Implementation of
the Western Development Strategy (C.S. [2011] No. 58) and the Announcement on Corporate
Income Tax Issues Involved in the Further Implementation of the Western Development Strategy
(Announcement [2012] No. 12 by the State Taxation Administration) an enterprise established in
the western region who is mainly engaged in an industry specified in the Catalogue of
Encouraged Industries in the Western Region and whose main business income accounts for over
70% of its gross income in the current year is entitled to a reduced corporate income tax rate of
15%. Chongqing Kangxingrui and Chengdu Konka Electronic subsidiaries of the Company are
eligible for this preferential tax policy.
(7) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of
Finance and the State Administration of Taxation for the VAT general taxpayers who sell their
self-developed and produced software products the VAT shall be levied at the rate of 13% and
then the part that the actual tax burden on their VAT exceeds 3 will be implemented with the
policy of immediate withdrawal. The Company’s subsidiaries Wankaida Technology Youzhihui
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 the following annotation project (including the main projects annotation
of the financial statement of the Company) the period-begin refers to 1 January 2022 the period-
109Konka Group Co. Ltd. Interim Report 2022
end refers to 30 June 2022 this period refers to the period from 1 January 2022 to 30 June 2022
and the last period refers to the period from 1 January 2021 to 30 June 2021. The monetary unit is
renminbi.
1. Monetary Assets
Item Ending balance Beginning balance
Cash on hand 9.41 363.22
Bank deposits 5934218376.34 5968346855.81
Other monetary assets 600420010.11 521205992.21
Total 6534638395.86 6489553211.24
Of which: total amount 191805082.38 167359880.91
deposited overseas
Note: The ending balance of other currency assets is mainly margin deposits financial
supervision account funds and other deposits subject to usage restrictions. Refer to Note VI-66
Assets with restricted ownership or use right for details.
2. Trading Financial Assets
No such cases at the end of the Reporting Period.
3. Notes Receivable
(1) Notes Receivable Listed by Category
Item Ending balance Opening balance
Commercial acceptance bill 223163880.43 561724266.27
Bank’s acceptance bill 711678224.25 1215753215.01
Total 934842104.68 1777477481.28
(2) Notes Receivable Pledged by the Company at the Period-end
Item Amount
Bank’s acceptance bill 368248481.12
Commercial acceptance bill 4825490.66
Total 373073971.78
(3) Notes Receivable which Had Endorsed by the Company or had Discounted and had not Due
on the Balance Sheet Date at the Period-end
Item Amount of recognition Amount of not terminated
termination at the period- recognition at the period-end
end
110Konka Group Co. Ltd. Interim Report 2022
Item Amount of recognition Amount of not terminated
termination at the period- recognition at the period-end
end
Bank’s acceptance bill 1014652928.06
Commercial acceptance bill 151757113.09
Total 1014652928.06 151757113.09
(4) Notes Transferred to Accounts Receivable because Drawer of the Notes Failed to Execute the
Contract or Agreement
No such cases in the Reporting Period.
(5) Listed by Withdrawal Methods for Bad Debt Provision
Ending balance
Carrying amount Bad debt provision
With
draw
Category
Proport al Carrying value
Amount Amount
ion (%) prop
ortio
n (%)
Provision for bad
debts provided
individually
Bad debt
provision made 939489453.78 100.00 4647349.10 0.49 934842104.68
as per portfolio
Of which: Bank 711678224.25 75.75 711678224.25
acceptance bill
Commerci 227811229.53 24.25 4647349.10 2.04 223163880.43
al acceptance bill
Total 939489453.78 100.00 4647349.10 0.49 934842104.68
(Continued)
Beginning balance
Category
Carrying amount Bad debt provision Carrying value
111Konka Group Co. Ltd. Interim Report 2022
With
draw
Proport al
Amount Amount
ion (%) prop
ortio
n (%)
Provision for bad
debts provided
individually
Bad debt
provision made 1789175291.65 100.00 11697810.37 0.65 1777477481.28
as per portfolio
Of which: Bank 1215753215.01 67.95 1215753215.01
acceptance bill
Commerci 573422076.64 32.05 11697810.37 2.04 561724266.27
al acceptance bill
Total 1789175291.65 100.00 11697810.37 0.65 1777477481.28
1) In the group notes receivable for which the provision for expected credit loss was made
according to trade acceptance
Ending balance
Name Withdrawal
Carrying amount Bad debt provision
proportion (%)
Within 1 year 227811229.53 4647349.10 2.04
Total 227811229.53 4647349.10 2.04
(6) Bad debt provision for notes receivable withdrawn collected or reversed during the Reporting
Period
Changed amount
Beginning With Collected or Ending
Category Write-off or
balance draw reversed balance
verified
al
Commercial 11697810.37 7050461.27 4647349.10
acceptance bill
Bank’s
acceptance bill
Total 11697810.37 7050461.27 4647349.10
112Konka Group Co. Ltd. Interim Report 2022
(7) Notes receivable actually written off in the current period
There is no notes receivable actually written off in the current period.
4. Accounts Receivable
(1) Accounts Receivable Listed by Withdrawal Methods for Bad Debts
Ending balance
Carrying amount Bad debt provision
With
draw
Category Propor
al Carrying value
Amount tion Amount
prop
(%)
ortio
n (%)
Accounts
receivable for
which the
independent 1577591336.54 33.12 1040697168.86 65.97 536894167.68
provision for
expected credit
losses
Accounts
receivable for
which the
provision for
expected credit
losses was
withdrawn
according to
groups
Of which: 3186183833.65 66.88 350449169.82 11.00 2835734663.83
aging group
Subtotal of 3186183833.65 66.88 350449169.82 11.00 2835734663.83
groups
Total 4763775170.19 100.00 1391146338.68 29.20 3372628831.51
(Continued)
Beginning balance
Category
Carrying amount Bad debt provision Carrying value
113Konka Group Co. Ltd. Interim Report 2022
With
draw
Propor
al
Amount tion Amount
propo
(%)
rtion
(%)
Accounts
receivable for
which the
independent 1608537820.30 33.82 1061967130.77 66.02 546570689.53
provision for
expected
credit losses
Accounts
receivable for
which the
provision for
expected
credit losses
was
withdrawn
according to
groups
Of which: 3148039065.69 66.18 296880274.15 9.43 2851158791.54
aging group
Subtotal of 3148039065.69 66.18 296880274.15 9.43 2851158791.54
groups
Total 4756576885.99 100.00 1358847404.92 28.57 3397729481.07
1) Accounts receivable for which the independent provision for expected credit loss is made at
the period-end
Ending balance
Withdr
Name Bad debt awal Withdrawal
Carrying amount
provision proport reason
ion (%)
Shanghai Huaxin 299136676.70 270016218.90 90.27 Debt default
International Group
114Konka Group Co. Ltd. Interim Report 2022
Ending balance
Withdr
Name Bad debt awal Withdrawal
Carrying amount
provision proport reason
ion (%)
Co. Ltd.Hongtu Sanbao
High-tech 200000000.00 80000000.00 40.00 Agreement
Technology Co. reorganization
Ltd.Tewoo Group Co. 200000000.00 100000000.00 50.00 Judicial
Ltd. reorganization
Shenzhen Yaode It is not expected
Technology Co. 137931418.85 68528250.38 49.68 to recover all of
Ltd. them
Guangan Ouqishi
It is not expected
Electronic 113230553.53 101907498.18 90.00 to recover all of
Technology Co.them
Ltd..Zhongfu Tiangong
Construction Group
Co. Ltd. (formerly It is not expected
known as 71689096.65 46662912.82 65.09 to recover all of“Zhonghegong themConstruction Group
Co. Ltd.)
CCCC First Harbor Expected to be
Engineering 65221300.00 58699170.00 90.00 difficult to
Company Ltd. recover in full
China Energy Expected to be
Electric Fuel Co. 50000000.00 42500000.00 85.00 difficult to
Ltd. recover in full
Tahoe Group Co. 50000000.00 40000000.00 80.00 Debt
Ltd. reorganization
The counterparty
H-BUSTER DO
BRASIL 18458464.59 18458464.59 100.00
is bankrupt and
is expected to be
INDUSTRIA
difficult to
115Konka Group Co. Ltd. Interim Report 2022
Ending balance
Withdr
Name Bad debt awal Withdrawal
Carrying amount
provision proport reason
ion (%)
recover
It is not expected
Others 371923826.22 213924653.99 57.52 to recover all of
them
Total 1577591336.54 1040697168.86 65.97
2) Accounts receivable for which the provision for expected credit losses was withdrawn
according to groups
Ending balance
Aging Withdrawal
Carrying amount Bad debt provision
proportion (%)
Within 1 year 2559004569.98 52203693.17 2.04
1 to 2 years 207273622.32 20768816.96 10.02
2-3 years 135613018.70 30770593.94 22.69
3-4 years 107023225.80 69436668.90 64.88
Over 4 years 177269396.85 177269396.85 100.00
Total 3186183833.65 350449169.82 11.00
This portfolio is recognized based on the aging characteristics of accounts receivable and the
withdrawal proportion of bad debt provision is recognized based on the historical loss rate and
forward-looking factors.
(2) Accounts Receivable Listed by Aging
Aging Ending balance
Within 1 year 2560479907.78
1 to 2 years 298297639.07
2 to 3 years 828608040.41
3 to 4 years 869088911.41
Over 4 years 207300671.52
Subtotal 4763775170.19
Less: bad debt provision 1391146338.68
Total 3372628831.51
(3) Bad debt provision for accounts receivable during the Reporting Period
116Konka Group Co. Ltd. Interim Report 2022
Changed amount
Category Beginning balance Collected or
Withdrawal
reversed
Bad debt provision of 1358847404.92 42299060.06
accounts receivable
Total 1358847404.92 42299060.06
(Continued)
Changed amount
Category Decrease for other Ending balance
Write-off or verified
reasons
Bad debt provision of 15638405.09 -5638278.79 1391146338.68
accounts receivable
Total 15638405.09 -5638278.79 1391146338.68
Decreases for other reasons were RMB-5698717.04 due to exchange rate changes and the
decrease by RMB60438.25 due to the loss of controlling right.
(4) Accounts receivable actually verified during the Reporting Period
Item Amount verified
Actually verified accounts receivable 15638405.09
Of which the verification of significant accounts receivable:
Whether
occurred
Verification because of
Natur Verification Reason for
Name of entity procedures related-
e Amount verification
performed party
transactio
ns
Approved by
Paym
Shantan Innovations Expected to be the Board of
ent for 2825921.20 No
Pvt. LTD unrecoverable Directors of
goods
subsidiary
Approved by
ASANZO GROUP Paym
Expected to be the Board of
JOINT STOCK ent for 6292153.94 No
unrecoverable Directors of
COMPANY goods
subsidiary
ASANZO MEDIA Paym 2036473.41 Expected to be Approved by No
117Konka Group Co. Ltd. Interim Report 2022
Whether
occurred
Verification because of
Natur Verification Reason for
Name of entity procedures related-
e Amount verification
performed party
transactio
ns
AND ent for unrecoverable the Board of
ENTERTAINMENT goods Directors of
JOIN subsidiary
Approved by
Paym
A SANZO VIET NAM Expected to be the Board of
ent for 4483856.54 No
ELECTRONIC JOINT unrecoverable Directors of
goods
subsidiary
Total 15638405.09
(5) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears
Party
The total amount of top five of account receivable of ending balance collected by arrears party
was RMB 1734749192.99 accounting for 36.42% of total closing balance of account receivable
the relevant ending balance of bad debt provision withdrawn was RMB471176245.94.
(6) Accounts Receivable Derecognized due to the Transfer of Financial Assets
There was no accounts receivable derecognized for transfer of financial assets.
(7) Amount of Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Accounts Receivable
There is no amount of assets and liabilities formed due to the transfer of accounts receivable and
continued involvement in Reporting Period.
5. Accounts Receivable Financing
Item Ending balance Beginning balance
Notes Receivable 9926723.80 71490688.54
Total 9926723.80 71490688.54
6. Prepayments
(1) Age of prepayments
Item Ending balance Beginning balance
118Konka Group Co. Ltd. Interim Report 2022
Amount Proportion Amount Proportion
(%)(%)
Within 1 583266427.55 95.41 602386221.38 95.41
year
1 to 2 years 13380428.37 2.19 20098838.22 3.18
2-3 years 10227155.90 1.67 8614486.12 1.36
Over 3 years 4475658.82 0.73 301408.14 0.05
Total 611349670.64 100.00 631400953.86 100.00
Note: The amount of prepayments aged over one year at the end of the period is RMB
28083243.09 accounting for 4.59% of the total balance of prepayments of the Company and
consists mainly of payments for goods afloat or unsettled payments.
(2) Prepayments to Suppliers from Top 5 Prepaid Parties Classified based on the Ending Balance
The total amount of prepayments with top 5 ending balance collected by prepaid party was
RMB205452468.95 accounting for 33.61% of the total ending balance of prepayments.
7. Other Receivables
Item Ending balance Opening balance
Interests receivable 3478418.99 2573082.79
Dividends receivable
Other Receivables 1806783384.89 1834886622.85
Total 1810261803.88 1837459705.64
7.1 Interests Receivable
(1) Category of Interests Receivable
Item Ending balance Opening balance
Term deposit 2907863.11 2002526.91
Factoring interest 570555.88 570555.88
Total 3478418.99 2573082.79
(2) Withdrawal of Bad Debt Provision for Interests Receivable
The Company did not have impaired interests receivable.
7.2 Dividends Receivable
(1) No such cases at the end of the Reporting Period.
7.3 Other Receivables
(1) Classified by Account Nature
119Konka Group Co. Ltd. Interim Report 2022
Nature Ending carrying balance Opening carrying balance
Deposit and margin 1324584359.75 1356193440.22
Intercourse funds among minority
shareholders in the business 175020491.02 173487141.27
consolidation not under the same
control and related parties
Energy-saving subsidies receivable 152399342.00 152399342.00
Others 1536387839.20 1489929312.88
Total 3188392031.97 3172009236.37
(2) Withdrawal of Bad Debt Provision for Other Receivables
Stage 1 Stage 2 Stage 3
Expected loss in Expected credit
Bad debt Expected credit the duration losses for the
Total
provision loss of the next (credit entire duration
12 months impairment not (with credit
occurred) impairment)
Balance as at 1
17419904.57182212040.321137490668.631337122613.52
January 2022
In the Reporting
Period carrying
amount of other -4196042.85 4196042.85
receivables on 1
January 2022
——Transferred -4196042.85 4196042.85
to the Phase II
——Transferred
to the Phase III
——Transferred
back to the
Phase II
——Transferred
back to the
Phase I
Provision made
in the current 1474096.03 13879527.05 28006091.69 43359714.77
period
Amount
120Konka Group Co. Ltd. Interim Report 2022
Stage 1 Stage 2 Stage 3
Expected loss in Expected credit
Bad debt Expected credit the duration losses for the
Total
provision loss of the next (credit entire duration
12 months impairment not (with credit
occurred) impairment)
transferred back
in the current
year
Write-off
Verification
Other changes 1126318.79 1126318.79
Balance as at 30 15824276.54 200287610.22 1165496760.32 1381608647.08
June 2022
Note: The first stage is that credit risk has not increased significantly since initial recognition. For
other receivables with an aging portfolio and a low-risk portfolio within 1 year the loss provision
is measured according to the expected credit losses in the next 12 months.The second stage is that credit risk has increased significantly since initial recognition but credit
impairment has not yet occurred. For other receivables with an aging portfolio and a low-risk
portfolio that exceed 1 year the loss provision is measured based on the expected credit losses for
the entire duration.The third stage is the credit impairment after initial confirmation. For other receivables of credit
impairment that have occurred the loss provision is measured according to the credit losses that
have occurred throughout the duration.
(3) Withdrawing bad debt provision for other receivables according to group
Ending balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
Other
receivables
with 1458878177.84 45.75 1165496760.32 79.89 293381417.52
significant
individual
121Konka Group Co. Ltd. Interim Report 2022
Ending balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
amount and
make
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
credit risks
characteristics
Aging group 1469772683.19 46.10 200523262.91 13.64 1269249420.28
Low-risk 259741170.94 8.15 15588623.85 6.00 244152547.09
group
Subtotal of 1729513854.13 54.25 216111886.76 12.50 1513401967.37
groups
Total 3188392031.97 100.00 1381608647.08 43.33 1806783384.89
(Continued)
Beginning balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
Other
receivables
with 1458258132.07 45.97 1137490668.63 78.00 320767463.44
significant
individual
122Konka Group Co. Ltd. Interim Report 2022
Beginning balance
Carrying amount Bad debt provision
Withd
Category Propo
rawal Carrying value
Amount rtion Amount
propor
(%)
tion
amount and
make
independent
provision for
expected credit
loss
Other
receivables
withdrawn bad
debt provision
according to
credit risks
characteristics
Aging group 1494744336.27 47.13 188949294.11 12.64 1305795042.16
Low-risk 219006768.03 6.90 10682650.78 4.88 208324117.25
group
Subtotal of 1713751104.30 54.03 199631944.89 11.65 1514119159.41
groups
Total 3172009236.37 100.00 1337122613.52 42.15 1834886622.85
(4) Listed by aging
Aging Ending balance
Within 1 year 886676703.44
1 to 2 years 681614764.99
2-3 years 1154159125.09
3-4 years 233236498.87
4-5 years 4506854.84
Over 5 years 228198084.74
Subtotal 3188392031.97
Less: bad debt provision 1381608647.08
Total 1806783384.89
123Konka Group Co. Ltd. Interim Report 2022
(5) Bad Debt Provision for Other Receivables
The amount of bad debt provision for Reporting Period was RMB43359714.77 increasing
RMB1249137.49 which was mainly due to exchange rate changes decreasing RMB122818.70
which was mainly due to loss of control.
(6) Other Receivables Actually Written off in the Reporting Period
There were no other receivables actually written off in the Reporting Period.
(7) Other Receivables with Top 5 Ending Balances Collected by Arrears Party
The total amount of other receivables with top 5 ending balance collected by arrears party in the
Reporting Period was RMB1424096545.64 accounting for 44.67% of the total ending balance
of other receivables. The total ending balance of bad debt provision correspondingly withdrawn
was RMB390808329.07.
(8) Other Receivables Derecognized due to the Transfer of Financial Assets
There were no other receivables derecognized due to the transfer of financial assets during the
Reporting Period.
(9) Amount of Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Other Receivables
There were no assets or liabilities formed due to the transfer and the continued involvement of
other receivables during the Reporting Period.
8. Inventories
(1) Category of Inventories
Ending balance
Inventory falling
price
Item
Carrying balance reserves/impairment Carrying value
provision of contract
performance costs
Real estate
development
projects：
Development cost 24421591.35 24421591.35
Subtotal 24421591.35 24421591.35
Non-real eatate
development projects:
Raw materials 1213593412.99 63109874.71 1150483538.28
124Konka Group Co. Ltd. Interim Report 2022
Ending balance
Inventory falling
price
Item
Carrying balance reserves/impairment Carrying value
provision of contract
performance costs
Semi-finished products 173645401.11 35883710.08 137761691.03
Products on hand 2948423458.79 243302592.86 2705120865.93
Contract performance
254159.33254159.33
costs
Subtotal 4335916432.22 342296177.65 3993620254.57
Total 4360338023.57 342296177.65 4018041845.92
Details of development cost
Estimated
next Opening Ending
Item On-stream time
completion balance balance
time
Konka (Haimen)’s project of
intelligent manufacturing base June 2022 June 2024 24421591.35
for electronic information
industry
(Continued)
Beginning balance
Inventory falling price
Item reserves / impairment
Carrying amount Carrying value
provision of contract
performance costs
Non-real eatate
development
projects:
Raw materials 1300321549.53 56921789.83 1243399759.70
Semi-finished products 188626889.60 36212915.54 152413974.06
Products on hand 2925212679.95 252742763.86 2672469916.09
Contract performance 254159.33 254159.33
125Konka Group Co. Ltd. Interim Report 2022
Beginning balance
Inventory falling price
Item reserves / impairment
Carrying amount Carrying value
provision of contract
performance costs
costs
Subtotal 4414415278.41 345877469.23 4068537809.18
Total 4414415278.41 345877469.23 4068537809.18
(2) Inventory falling price reserves and impairment provision of contract performance costs
Increased
Item Beginning balance Withdrawal Other
Raw materials 56921789.83 8438000.83
Semi-finished product 36212915.54 651553.89
Inventory goods 252742763.86 4220434.03
Contract performance
costs
Total 345877469.23 13309988.75
(Continued)
Item Decreased Ending balance
Write-off Other
Raw materials 2016763.74 233152.21 63109874.71
Semi-finished product 980759.35 35883710.08
Inventory goods 12870905.06 789699.97 243302592.86
Contract performance
costs
Total 15868428.15 1022852.18 342296177.65
Specific basis for determining the realizable 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:
Reasons for write-off of
Specific basis for withdrawal of
Item inventory falling price reserves
inventory falling price reserves
in the Reporting Period
The realizable net value was lower They have been sold or collected
Raw materials
than the carrying value in the Reporting Period
Semi-finished The realizable net value was lower They have been sold or collected
126Konka Group Co. Ltd. Interim Report 2022
Reasons for write-off of
Specific basis for withdrawal of
Item inventory falling price reserves
inventory falling price reserves
in the Reporting Period
products than the carrying value in the Reporting Period
The realizable net value was lower They have been sold in the
Products on hand
than the carrying value Reporting Period
9. Contractual assets
There were no contractual assets at the end of the Reporting Period.
10. Current Portion of Non-current Assets
Item Ending balance Beginning Nature
balance
Current portion of long-term 28493943.14 28105523.78 Finance leasing
receivable amount
Total 28493943.14 28105523.78
11. Other Current Assets
Item Ending balance Beginning balance
Principal and interests of entrusted loans to
2680326498.491624197904.35
associated enterprises
Prepayments and deductible taxes and
638536197.81649198781.95
refund of tax for export receivable
Costs receivable for returning goods 19225630.83 21501882.70
Others 4778089.47 5064822.24
Total 3342866416.60 2299963391.24
12. Long-term Receivables
(1) List of Long-term Receivables
Ending balance
Item Carrying Bad debt
Carrying value
amount provision
Finance leasing amount 3283943.14 3283943.14
Of which: unrealized financing income 83035.07 83035.07
Cash deposits of long-term receivables 35640400.00 35640400.00
Less: Current portion of long-term receivable 28493943.14 28493943.14
See Note VI. 10 for details)
Total 10430400.00 10430400.00
127Konka Group Co. Ltd. Interim Report 2022
(Continued)
Beginning balance
Item Carrying Bad debt
Carrying value
amount provision
Finance leasing amount 10960622.92 10960622.92
Of which: unrealized financing income 390068.94 390068.94
Cash deposits of long-term receivables 35640400.00 35640400.00
Less: Current portion of long-term
receivable 28105523.78 28105523.78
See Note VI. 10 for details)
Total 18495499.14 18495499.14
128Konka Group Co. Ltd. Interim Report 2022
13. Long-term Equity Investments
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Kangkong Ventures
Development (Shenzhen) 4895096.41 -122500.00
Co. Ltd.Nanjing Zhihuiguang
Information Technology 1642793.07 8927.50
Research Institute Co. Ltd.Feidi Technology (Shenzhen) 10468555.83 -171200.00
Co. Ltd. and its subsidiaries
Shenzhen Kangyue 32504265.03 -109725.90
Enterprise Co. Ltd.Foshan Pearl River Media
Creative Park Cultural 4179700.00 -477535.95
Development Co. Ltd.Kangkai Technology Service 228931.64 -93330.23
(Chengdu) Co. Ltd.
Puchuang Jiakang 1836583.36 2037585.61
129Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Technology Co Ltd.Chongqing Qingjia 15034341.13 606551.34
Electronics Co. Ltd.Shenzhen Jielunte 94278354.91 -342916.95
Technology Co. Ltd.Panxu Intelligence Co. Ltd. 52366635.10 314310.00
Orient Excellent (Zhuhai) 5077777.37 3388170.30
Asset Management Co. Ltd.Dongfang Konka No. 1
(Zhuhai) Private Equity 467638787.38 5076700.00 -1190792.65
Investment Fund (LP)
Tongxiang Wuzhen Kunyu 3528077.43
Equity Investment Co. Ltd.Shenzhen RF-LINK
Technology Co. Ltd.Anhui Kaikai Shijie E- 418721305.96
commerce Co. Ltd.Kunshan Kangsheng 317101869.51 -4747257.35
130Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Investment Development
Co. Ltd.Chutian Dragon Co. Ltd. 647490626.93 85013375.26 13641260.41
Helongjiang Longkang Zhijia 1117531.32 1157647.82 40116.50
Technology Co. Ltd.Shaanxi Silu Yunqi Smart 14113227.58 183461.77
Technology Co. Ltd.Shenzhen Kanghongxing
Smart Technology Co. Ltd.Shenzhen Zhongbing Konka
Technology Co. Ltd.Shenzhen Bosser New 60453041.59 1324755.44
Materials Co. Ltd.Shenzhen Yaode Technology
Co. Ltd.Wuhan Tianyuan
Environmental Protection 325645840.91 11179621.33
Co. Ltd.
131Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Chuzhou Konka Technology
Industry Development Co. 49658397.02 -1305129.50
Ltd.Chuzhou Kangjin Health
Industrial Development Co. 118122798.37 24500000.00
Ltd.Nantong Kangjian
Technology Industrial Park 116294808.94 -588275.99
Operations and Management
Co. Ltd.Chuzhou Kangxin Health
Industry Development Co. 185277588.25 -1370767.86
Ltd.Dongguan Guankang 539103920.30 -12145407.83
Yuhong Investment Co. Ltd.Shenzhen Morsemi
Semiconductor Technology 2395748.73 -2395748.73
Co. Ltd.
132Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Shandong Econ Technology 1024944000.00 59671172.50
Co. Ltd.Dongguan Kangjia New
Materials Technology Co. 6920620.00 -451280.15
Ltd.Shenzhen E2info Network 1018795584.41 574782.45
Technology Co. Ltd.Yantai Kangyun Industrial 76721264.91 -2011566.36
Development Co. Ltd.E3 (Hainan) Technology Co. 58715678.97
Ltd.Shenzhen Konka Jiapin
Intelligent Electrical 3921788.17 725889.93
Apparatus Co. Ltd.Shenzhen Konda E-display 82930520.62 -1564990.77
Co. Ltd.Chongqing Yuanlv Benpao 33459820.85 -5544180.67
Real Estate Co. Ltd.
133Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Shenzhen Kangpeng Digital 5702518.20 -1164839.41
Technology Co. Ltd.Yantai Kangtang
Construction Development 17740.49 100947.17
Co. Ltd.Dongguan Kangzhihui 23528224.46 -4227152.42
Electronics Co. Ltd.Sichuan Huayi Jiakang 339893.32 -161494.44
Technology Co. Ltd.Sichuan Aimijiakang 2000138.36 -138036.90
Technology Co. Ltd.Beijing Konka Jingyuan 766290.97
Technology Co. Ltd.Chongqing Liangshan
Enterprise Management Co. 53673.48
Ltd.Shenzhen Kangene 907025.65 51821.26
Technology Innovation
134Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Development Co. Ltd.Shandong Kangfei Intelligent
Electrical Appliances Co. 1478689.46 -1113706.55
Ltd.Henan Kangfei Intelligent
Electrical Appliances Co. 1832647.54 -163129.50
Ltd.Runxin Microelectronic 47509494.92 47509494.92
(Dalian) Co Ltd.
Guangdong Kangyuan 9214309.08 6680000.00 -726735.58
Semiconductor Co. Ltd.Chongqing Kangyiqing 795085.13 -82240.22
Technology Co. Ltd.Shenzhen Kangying
Semiconductor Technology 11416062.86 6000000.00 -1080619.83 -38929.34
Co. Ltd.KK Smartech Limited 1441263.59
Shenzhen Konka Electrical
135Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Gains and losses Adjustment of
Investee Opening balance Additional Investment Cost method to recognized other
investment reduced equity method under the equity comprehensive
method income
Appliances Co. Ltd.Heifei KONSEMI Storage 204000000.00 -8004201.68
Technology Co. Ltd.Sichuan Chengrui Real 43120000.00
Estate Co. Ltd.Konka Industrial
Development (Wuhan) Co. 45000000.00
Ltd.Total 5902588939.51 42256700.00 133680518.00 292120000.00 42354610.09 -38929.34
(Continued)
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Kangkong Ventures 4772596.41
Development (Shenzhen) Co.
136Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Ltd.Nanjing Zhihuiguang
Information Technology 1651720.57
Research Institute Co. Ltd.Feidi Technology (Shenzhen) 10297355.83
Co. Ltd. and its subsidiaries
Shenzhen Kangyue Enterprise 32394539.13
Co. Ltd.Foshan Pearl River Media
Creative Park Cultural 3702164.05
Development Co. Ltd.Kangkai Technology Service 135601.41
(Chengdu) Co. Ltd.
Puchuang Jiakang Technology 3874168.97
Co Ltd.Chongqing Qingjia Electronics 15640892.47
Co. Ltd.Shenzhen Jielunte Technology 93935437.96
137Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Co. Ltd.Panxu Intelligence Co. Ltd. 52680945.10
Orient Excellent (Zhuhai) 8465947.67
Asset Management Co. Ltd.Dongfang Konka No. 1
(Zhuhai) Private Equity 471524694.73
Investment Fund (LP)
Tongxiang Wuzhen Kunyu 3528077.43
Equity Investment Co. Ltd.Shenzhen RF-LINK 85656027.35
Technology Co. Ltd.Anhui Kaikai Shijie E- 418721305.96
commerce Co. Ltd.Kunshan Kangsheng
Investment Development Co. 312354612.16
Ltd.Chutian Dragon Co. Ltd. 4410993.60 571707518.48
Helongjiang Longkang Zhijia
138Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Technology Co. Ltd.Shaanxi Silu Yunqi Smart 14296689.35
Technology Co. Ltd.Shenzhen Kanghongxing Smart 12660222.73
Technology Co. Ltd.Shenzhen Zhongbing Konka
Technology Co. Ltd.Shenzhen Bosser New 61777797.03 18536771.07
Materials Co. Ltd.Shenzhen Yaode Technology 214559469.35
Co. Ltd.Wuhan Tianyuan
Environmental Protection Co. 2770200.00 334055262.24
Ltd.Chuzhou Konka Technology
Industry Development Co. 48353267.52
Ltd.Chuzhou Kangjin Health 142622798.37
139Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Industrial Development Co.Ltd.Nantong Kangjian Technology
Industrial Park Operations and 115706532.95
Management Co. Ltd.Chuzhou Kangxin Health
Industry Development Co. 183906820.39
Ltd.Dongguan Guankang Yuhong 526958512.47
Investment Co. Ltd.Shenzhen Morsemi
Semiconductor Technology
Co. Ltd.Shandong Econ Technology 135296760.09 1219911932.59
Co. Ltd.Dongguan Kangjia New 6469339.85
Materials Technology Co. Ltd.Shenzhen E2info Network 1019370366.86
140Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Technology Co. Ltd.Yantai Kangyun Industrial 74709698.55
Development Co. Ltd.E3 (Hainan) Technology Co. 58715678.97
Ltd.Shenzhen Konka Jiapin
Intelligent Electrical Apparatus 4647678.10
Co. Ltd.Shenzhen Konda E-display 81365529.85
Co. Ltd.Chongqing Yuanlv Benpao 27915640.18
Real Estate Co. Ltd.Shenzhen Kangpeng Digital 4537678.79
Technology Co. Ltd.Yantai Kangtang Construction 118687.66
Development Co. Ltd.Dongguan Kangzhihui 19301072.04
Electronics Co. Ltd.
141Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Sichuan Huayi Jiakang 178398.88
Technology Co. Ltd.Sichuan Aimijiakang 1862101.46
Technology Co. Ltd.Beijing Konka Jingyuan 766290.97
Technology Co. Ltd.Chongqing Liangshan
Enterprise Management Co. 53673.48
Ltd.Shenzhen Kangene Technology
Innovation Development Co. 958846.91
Ltd.Shandong Kangfei Intelligent 364982.91
Electrical Appliances Co. Ltd.Henan Kangfei Intelligent 1669518.04
Electrical Appliances Co. Ltd.Runxin Microelectronic
(Dalian) Co Ltd.
142Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Cash bonus or Withdrawal Ending balance
Investee Other equity profits of Ending balance of impairment
Others
changes announced to impairment provision
issue provision
Guangdong Kangyuan 15167573.50
Semiconductor Co. Ltd.Chongqing Kangyiqing 712844.91
Technology Co. Ltd.Shenzhen Kangying
Semiconductor Technology 16296513.69
Co. Ltd.KK Smartech Limited 1441263.59
Shenzhen Konka Electrical 10732484.69
Appliances Co. Ltd.Heifei KONSEMI Storage 195995798.32
Technology Co. Ltd.Sichuan Chengrui Real Estate 43120000.00
Co. Ltd.Konka Industrial Development 45000000.00
(Wuhan) Co. Ltd.Total 135296760.09 7181193.60 6273716368.75 342144975.19
143Konka Group Co. Ltd. Interim Report 2022
14. Investment in Other Equity Instruments
(1) Investment in Other Equity Instruments
Item Ending balance Opening balance
Shenzhen Tianyilian Science & Technology Co. Ltd.Shenzhen Adopt Network Co. Ltd.Beijing Huyu Digital Technology Co. Ltd. 5901121.80 5901121.80
Feihong Electronics Co. Ltd.ZAEFI
Shenzhen Chuangce Investment Development Co. Ltd.Shanlian Information Technology Engineering Center 1860809.20 1860809.20
Shenzhen CIU Science & Technology Co. Ltd. 953000.00 953000.00
Shenzhen Digital TV National Engineering Laboratory Co. Ltd. 7726405.16 7726405.16
Shanghai National Engineering Research Center of Digital TV Co. Ltd. 2400000.00 2400000.00
Bohu UHD 5000001.00 5000001.00
Total 23841337.16 23841337.16
(2) Investment in Non-trading Equity Instruments in the Reporting Period
144Konka Group Co. Ltd. Interim Report 2022
Reason for other
Amount of other Reason for assigning to
Dividend comprehensive
comprehensive measure in fair value of
income Accumulati Accumulative income
Item income which changes included
recognized ve gains losses transferred to
transferred to other comprehensive
this year retained
retained earnings income
earnings
Shenzhen Tianyilian Science & 4800000.00 Long-term holding based
Technology Co. Ltd. on strategic purpose
Long-term holding based
Shenzhen Adopt Network Co. Ltd. 5750000.00
on strategic purpose
Beijing Huyu Digital Technology 98878.20 Long-term holding based
Co. Ltd. on strategic purpose
Feihong Electronics Co. Ltd. 1300000.00
Long-term holding based
on strategic purpose
100000.00 Long-term holding basedZAEFI
on strategic purpose
Shenzhen Chuangce Investment 485000.00 Long-term holding based
Development Co. Ltd. on strategic purpose
Shanlian Information Technology 3139190.80 Long-term holding based
Engineering Center on strategic purpose
Shenzhen CIU Science & 200000.00 Long-term holding based
Technology Co. Ltd. on strategic purpose
Shenzhen Digital TV National 1273594.84 Long-term holding based
145Konka Group Co. Ltd. Interim Report 2022
Reason for other
Amount of other Reason for assigning to
Dividend comprehensive
comprehensive measure in fair value of
income Accumulati Accumulative income
Item income which changes included
recognized ve gains losses transferred to
transferred to other comprehensive
this year retained
retained earnings income
earnings
Engineering Laboratory Co. Ltd. on strategic purpose
Shanghai National Engineering
Long-term holding based
Research Center of Digital TV Co.on strategic purpose
Ltd.Long-term holding based
Bohu UHD
on strategic purpose
Total 17146663.84
146Konka Group Co. Ltd. Interim Report 2022
15. Other Non-current Financial Assets
Item Ending balance Opening balance
China Asset Management-Jiayi Overseas Designated
Plan 200326093.02 200326093.02
Yibin OCT Sanjiang Properties Co. Ltd. 200000000.00 200000000.00
Yili Ecological Restoration Co. Ltd. 90000000.00 90000000.00
Kunshan Xinjia Emerging Industry Equity Investment
Fund Partnership (Limited Partnership) 183220392.92 88186078.16
Tongxiang Wuzhen Jiayu Digital Economy Industry
Equity Investment Partnership (Limited Partnership) 198266889.53 118266889.53
Yibin Kanghui Electronic Information Industry Equity
Investment Partnership (Limited Partnership) 104185495.56 116086430.82
Chuzhou Jiachen Information Technology Consulting
Service Partnership (Limited Partnership) 59700130.13 52200130.13
Yancheng Kangyan Information Industry Investment
Partnership (Limited Partnership) 179245424.89 225680330.93
Chongqing Kangxin Equity Investment Fund Limited
Partnership (Limited Partnership) 148132905.61 100882805.61
Shenzhen Kanghuijia Technology Co. Ltd. 9273.31 9273.31
Subtotal of equity investments 1363086604.97 1191638031.51
Chuzhou Huike Smart Household Appliances Industry
Investment Partnership (Limited Partnership) 864706665.04 890768440.22
Ningbo Yuanqing No. 9 Investment Partnership 148855198.11 134671492.89
Shenzhen Beihu Technology Partnership (Limited
Partnership) 58000000.00 58000000.00
Xi'an Bihui Enterprise Management Consulting
Partnership (Limited Partnership) 7163411.30
Henan Chuangxing Enterprise Management Center
(Limited Partnership) 18283639.06 18283639.06
Subtotal of debt investments 1097008913.51 1101723572.17
Total 2460095518.48 2293361603.68
16. Investment Properties
(1) Investment Properties Measured at Cost
Item Houses buildings and lands Total
I. Original carrying value
1. Beginning balance 871572633.64 871572633.64
2. Increase in the period 8531405.75 8531405.75
(1) Outsourcing 8531405.75 8531405.75
(2) Fixed assets\Construction
147Konka Group Co. Ltd. Interim Report 2022
Item Houses buildings and lands Total
in progress\Transfer of
intangible assets
3. Decrease in the period
(1) Disposal
(2) Other transfer out
4. Ending balance 880104039.39 880104039.39
II. The accumulative
depreciation and accumulative
amortization
1. Beginning balance 95047572.10 95047572.10
2. Increase in the period 10195579.58 10195579.58
(1) Provision or amortization 10195579.58 10195579.58
3. Decrease in the period
(1) Disposal
(2) Other transfer out
4. Ending balance 105243151.68 105243151.68
III. Depreciation reserves
1. Beginning balance
2. Increase in the period
(1) Withdrawal
3. Decrease in the period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Carrying value
1. Ending carrying value 774860887.71 774860887.71
2. Beginning carrying value 776525061.54 776525061.54
(2) Investment properties measured at fair value
There were no investment properties measured at fair value of the Company.
(3) Investment properties in the process of title certificate handling
148Konka Group Co. Ltd. Interim Report 2022
Item Carrying value Reason
Konka Standard Electronic Settlement of the project is
Product Plants Project in 267441842.65 underway and the certificate
Sunning can be handled only after the
settlement
Total 267441842.65
17. Fixed Assets
Item Ending carrying value Opening carrying value
Fixed Assets 3960662993.10 4010295277.14
Fixed assets pending for
disposal
Total 3960662993.10 4010295277.14
149Konka Group Co. Ltd. Interim Report 2022
17.1 Fixed Assets
(1) List of Fixed Assets
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
I. Original carrying
value
1. Opening balance 2529405574.18 2966454406.17 240354786.94 59322549.91 351086303.85 6146623621.05
2. Increased amount of 554837.61 139199350.07 15476408.96 940240.50 7680391.78 163851228.92
the period
(1) Purchase 554837.61 90478956.65 11492772.94 940240.50 6861763.42 110328571.12
(2) Transfer from 48715641.21 3958811.75 818628.36 53493081.32
construction in progress
(3) Increase through
consolidation
(4) Other transfer-in 4752.21 24824.27 29576.48
3. Decreased amount of 31225252.01 13536766.23 1183135.47 3159092.85 49104246.56
the period
(1) Disposal or scrap 31223452.01 3070738.72 826996.62 1903957.35 37025144.70
(2) Decrease for loss of 10466027.51 356138.85 10822166.36
controlling right
(3) Other decreases 1800.00 1255135.50 1256935.50
4. Ending balance 2529960411.79 3074428504.23 242294429.67 59079654.94 355607602.78 6261370603.41
150Konka Group Co. Ltd. Interim Report 2022
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
II. Accumulative
depreciation
1. Opening balance 593988005.87 1083045070.75 157322088.50 40593276.19 210886326.73 2085834768.04
2. Increased amount of 42245682.55 128024562.48 9455863.91 2677542.74 17847865.27 200251516.95
the period
(1) Withdrawal 42245682.55 128024562.48 9455863.91 2677542.74 17847865.27 200251516.95
(2) Increase through
consolidation
(3) Other increase
3. Decreased amount of 26838792.02 6347929.60 901301.09 1455498.45 35543521.16
the period
(1) Disposal or scrap 26838792.02 2739973.81 709579.66 1455498.45 31743843.94
(2) Decrease for loss of 3607955.79 191721.43 3799677.22
controlling right
(3) Other decreases
4. Ending balance 636233688.42 1184230841.21 160430022.81 42369517.84 227278693.55 2250542763.83
III. Impairment
provision
1. Opening balance 1247805.91 42710420.48 638396.94 820770.14 5076182.40 50493575.87
2. Increased amount of
the period
151Konka Group Co. Ltd. Interim Report 2022
Houses and Machinery Electronic Transportation
Item Other machinery Total
buildings equipment equipment equipment
(1) Withdrawal
3. Decreased amount of 328729.39 328729.39
the period
(1) Disposal or scrap 328729.39 328729.39
(2) Other decrease
4. Ending balance 1247805.91 42381691.09 638396.94 820770.14 5076182.40 50164846.48
IV. Carrying value
1. Ending carrying 1892478917.46 1847815971.93 81226009.92 15889366.96 123252726.83 3960662993.10
value
2. Opening carrying 1934169762.40 1840698914.94 82394301.50 17908503.58 135123794.72 4010295277.14
value
152Konka Group Co. Ltd. Interim Report 2022
(2) List of Temporarily Idle Fixed Assets
Original Accumulated Impairment
Item Carrying value
carrying value depreciation provision
Machinery 26665441.34 15169018.99 1540311.51 9956110.84
equipment
Electronic 5783766.22 4605666.17 1704.25 1176395.80
equipment
Transportation 1031130.24 631767.99 399362.25
equipment
Houses and 449070.15 218921.63 230148.52
buildings
Other machinery 937012.55 796762.90 26675.22 113574.43
Total 34866420.50 21422137.68 1568690.98 11875591.84
(3) Fixed Assets Leased out from Operation Lease
Item Ending carrying value
Electronic equipment 1015317.27
Machinery equipment 18888747.25
Other machinery 675076.11
Transportation equipment 120877.43
Total 20700018.06
(4) Details of Fixed Assets Failed to Accomplish Certification of Property
Imp
airm
Original Accumulated Net carrying
Item ent Reason
carrying value depreciation value
prov
ision
Ankang's 601722965.12 12757162.38 588965802.74 Being
plants handled
Bokang's
phase II
plants on the
Being
second and 33584624.73 1511308.11 32073316.62
handled
third floors
for printed
boards
153Konka Group Co. Ltd. Interim Report 2022
Imp
airm
Original Accumulated Net carrying
Item ent Reason
carrying value depreciation value
prov
ision
Jingyuan
Building 7700000.00 3984736.14 3715263.86
Being
handled
property
Yikang
Building 76610752.33 39490429.63 37120322.70
Being
handled
property
Total 719618342.18 57743636.26 661874705.92
(5) Fixed Assets with Restricted Ownership or Use Right
Item Ending carrying value Reason for restriction
Housing and buildings of 147633213.09 Mortgaged for billing
Anhui Tongchuang
Machinery equipment of 52519955.06 Financing lease mortgage
Jiangxi Konka
Machinery equipment of 107428880.84 Finance lease mortgage
Xinfeng Microcrystalline
Housing and buildings of 88015544.30 Mortgage loan
Frestec Refrigeration
Buildings of Konka Group 77229221.63 Mortgage loan
Housing and buildings of 35852318.78 Mortgage loan
XingDa HongYe
Anhui Konka's buildings 620841156.45 Mortgage loan
Machinery equipment of 18874840.71 Finance lease mortgage
Xingda Hongye
Machinery equipment of 10232197.90 Finance lease mortgage
Boluo Konka Precision
Smart machinery equipment
and other equipment of 39453997.39 Mortgage loan
Jiangsu Konka
Total 1198081326.15
18. Construction in progress
Item Ending balance Opening balance
154Konka Group Co. Ltd. Interim Report 2022
Item Ending balance Opening balance
Construction in progress 1781601493.64 1490777831.39
Total 1781601493.64 1490777831.39
155Konka Group Co. Ltd. Interim Report 2022
18.1. Construction in Progress
(1) List of Construction in Progress
Ending balance Opening balance
Item Impairment Impairment
Carrying balance Carrying value Carrying balance Carrying value
provision provision
Infrastructure Project of
Chongqing Konka
Semiconductor 373732053.92 373732053.92 319259613.46 319259613.46
Optoelectronics Research
Institute (Part I Part II and
Part III)
Guangming Project 317212905.91 317212905.91 282501390.70 282501390.70
Jiangxi High-permeability 246576748.57 246576748.57 246576748.57 246576748.57
Crystalization Kiln
Dongguan Konka New 273664531.39 273664531.39 163155903.72 163155903.72
Industrial Park
Construction of Suining
Electronic Industrial Park 127628772.27 127628772.27 112187404.92 112187404.92
Workshops
R&D equipment construction 27876511.11 27876511.11 26273554.58 26273554.58
project of Chongqing
156Konka Group Co. Ltd. Interim Report 2022
Ending balance Opening balance
Item Impairment Impairment
Carrying balance Carrying value Carrying balance Carrying value
provision provision
Optoelectronic Technology
Research Institute
Medical engineering project
of Yibin Kangrun 94708620.41 94708620.41 26471040.49 26471040.49
Other projects 320528936.27 327586.21 320201350.06 314679761.16 327586.21 314352174.95
Total 1781929079.85 327586.21 1781601493.64 1491105417.60 327586.21 1490777831.39
(2) Changes of Significant Construction in Progress this period
Decrease in this period
Name of item Opening balance Increase in this period Transferred to long- Ending balance
Other decrease
term assets
Infrastructure Project of Chongqing
Konka Semiconductor 319259613.46 54472440.46 373732053.92
Optoelectronics Research Institute
(Part I Part II and Part III)
Guangming Project 282501390.70 34711515.21 317212905.91
Jiangxi High-permeability 246576748.57 246576748.57
Crystalization Kiln
Dongguan Konka New Industrial Park 163155903.72 110508627.67 273664531.39
157Konka Group Co. Ltd. Interim Report 2022
Decrease in this period
Name of item Opening balance Increase in this period Transferred to long- Ending balance
Other decrease
term assets
Construction of Suining Electronic 112187404.92 16582875.96 1141508.61 127628772.27
Industrial Park Workshops
R&D equipment construction project
of Chongqing Optoelectronic 26273554.58 24028303.89 22419073.78 6273.58 27876511.11
Technology Research Institute
Medical engineering project of Yibin
Kangrun 26471040.49 68237579.92 94708620.41
Total 1176425656.44 308541343.11 22419073.78 1147782.19 1461400143.58
(Continued)
Proportion Of which: the
Accumulated Capitalization
estimated of the amount of the
Estimated number Engineering amount of rate of the
Name of item project capitalized Capital resources
(RMB100 million) Schedule (%) interest interests of the
accumulative interests of the
capitalization period (%)
input (%) period
Infrastructure Project
of Chongqing Konka
Semiconductor 7.16 52.20 52.20 Self-owned fund
Optoelectronics
Research Institute (Part
158Konka Group Co. Ltd. Interim Report 2022
Proportion Of which: the
Accumulated Capitalization
estimated of the amount of the
Estimated number Engineering amount of rate of the
Name of item project capitalized Capital resources
(RMB100 million) Schedule (%) interest interests of the
accumulative interests of the
capitalization period (%)
input (%) period
I Part II and Part III)
Guangming Project 5.33 Self-owned fund59.66 59.66 15576085.78 6292175.31 7.90and project loans
Jiangxi High-
3.40 Self-owned fundpermeability 72.52 72.52 32249994.16
and bank financing
Crystalization Kiln
Dongguan Konka New 3.90 Self-owned fund70.17 70.17 9621050.14 3848525.92 4.80
Industrial Park and bank financing
Construction of
Suining Electronic 7.04 47.82 47.82 Self-owned fund
Industrial Park
Workshops
R&D equipment
construction project of
Chongqing 7.08 87.55 87.55 Self-owned fund
Optoelectronic
Technology Research
Institute
159Konka Group Co. Ltd. Interim Report 2022
Proportion Of which: the
Accumulated Capitalization
estimated of the amount of the
Estimated number Engineering amount of rate of the
Name of item project capitalized Capital resources
(RMB100 million) Schedule (%) interest interests of the
accumulative interests of the
capitalization period (%)
input (%) period
Medical engineering
project of Yibin 2.17 Self-owned fund43.64 10.18 3702.78 3702.78 4.30
Kangrun and bank financing
Total 57450832.86 10144404.01
160Konka Group Co. Ltd. Interim Report 2022
19. Right-of-use assets
Houses and Electronic Transportatio
Item Total
buildings equipment n equipment
I. Original carrying
value
1. Opening balance 114397549.47 310725.66 832266.36 115540541.49
2. Increased 27756971.83 27756971.83
amount this period
(1) Rent 27756971.83 27756971.83
(2) Others
3. Decreased 2294543.18 832266.36 3126809.54
amount this period
(1) Decrease for
loss of controlling 887522.59 887522.59
right
(2) Others 1407020.59 832266.36 2239286.95
4. Ending balance 139859978.12 310725.66 140170703.78
II. Accumulative
depreciation
1. Opening balance 43734529.28 31072.56 564524.28 44330126.12
2. Increased 28358861.38 31072.56 267742.08 28657676.02
amount this period
(1) Withdrawal 28358861.38 31072.56 267742.08 28657676.02
(2) Others
3. Decreased 1271967.98 832266.36 2104234.34
amount this period
(1) Decrease for
loss of controlling 443761.31 443761.31
right
(2) Others 828206.67 832266.36 1660473.03
4. Ending balance 70821422.68 62145.12 70883567.80
III. Impairment
provision
1. Opening balance
2. Increased
amount this period
161Konka Group Co. Ltd. Interim Report 2022
Houses and Electronic Transportatio
Item Total
buildings equipment n equipment
(1) Withdrawal
3. Decreased
amount this period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying 69038555.44 248580.54 69287135.98
value
2. Opening 70663020.19 279653.10 267742.08 71210415.37
carrying value
162Konka Group Co. Ltd. Interim Report 2022
20. Intangible Assets
(1) List of intangible assets
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
I. Original
carrying
value
1. Opening 927878747.71 75609671.41 163217317.78 128853938.95 367680928.14 1295559675.85
balance
2. Increased
amount of the 12171519.15 8969810.89 8969810.89 21141330.04
period
(1) Purchase 12171519.15 7490782.69 7490782.69 19662301.84
(2) Transfer
from 1479028.20 1479028.20 1479028.20
construction
in progress
(3) Transfer
from R&D
(4) Increase
163Konka Group Co. Ltd. Interim Report 2022
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
through
consolidation
(5) Other
reasons
3. Decreased
amount of the 15000000.00 309734.51 15309734.51 15309734.51
period
(1) Disposal
(2) Decrease
for loss of 15000000.00 309734.51 15309734.51 15309734.51
controlling
right
(3) Decrease
for other
reasons
4. Ending 940050266.86 75609671.41 148217317.78 137514015.33 361341004.52 1301391271.38
balance
II.Accumulated
164Konka Group Co. Ltd. Interim Report 2022
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
amortization
1. Opening 83549162.11 17998848.90 108112881.20 68896878.23 195008608.33 278557770.44
balance
2. Increased
amount of the 10877110.38 2293522.69 2672123.29 7111970.33 12077616.31 22954726.69
period
(1)10877110.382293522.692672123.297111970.3312077616.3122954726.69
Withdrawal
(2) Other
increases
3. Decreased
amount of the 12916666.68 73930.67 12990597.35 12990597.35
period
(1) Disposal
(2) Decrease
for loss of 12916666.68 73930.67 12990597.35 12990597.35
controlling
right
(3) Decrease
165Konka Group Co. Ltd. Interim Report 2022
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
for other
reasons
4. Ending 94426272.49 20292371.59 97868337.81 75934917.89 194095627.29 288521899.78
balance
III.Impairment
provision
1. Opening 41705989.33 41705989.33 41705989.33
balance
2. Increased
amount of the
period
(1)
Withdrawal
(2) Business
Combination
Increase
3. Decreased
amount of the
166Konka Group Co. Ltd. Interim Report 2022
Intellectual property
Right to use
Item Land use right Trademark Patent and Franchise Total
software and Subtotal
right know-how rights
others
period
(1) Disposal
(2) Decrease
for loss of
controlling
right
4. Ending 41705989.33 41705989.33 41705989.33
balance
IV. Carrying
value
1. Ending
carrying 845623994.37 55317299.82 8642990.64 61579097.44 125539387.90 971163382.27
value
2. Opening
carrying 844329585.60 57610822.51 13398447.25 59957060.72 130966330.48 975295916.08
value
167Konka Group Co. Ltd. Interim Report 2022
(2) Land Use Right with Certificate of Title Uncompleted
Item Carrying value Reason
Land use right of the subsidiary
Nano-Grystallized Glass 5071349.33 Being handled
(3) Significant Intangible Assets
Remaining amortization period
Item Ending carrying value
(year)
Land usage right of Fenggang 191936448.67 47.17
Konka Intelligent Industrial Park
Land of Frestec Smart Home 93164251.54 48.25
Industrial Park
Land usage right of Frestec 66764392.50 34.25
Refrigeration
Land use right of Konka Huanjia 63856832.12 47.00
Land use right of the
semiconductor & optoelectronics 59884651.52 47.17
industrial park
(4) Intangible Assets with Restricted Ownership or Using Right
Item Ending carrying value Reason for restriction
Land use right of Dongguan
Konka 191936448.67
Mortgage loan
Land use right of Anhui Konka 55673956.00 Mortgage loan
Land usage right of Frestec Mortgage loan
Refrigeration 66764392.50
Land use right of Anhui Mortgaged for billing
Tongchuang 18188977.93
Land use right of Jiangsu Konka 14453262.78 Mortgage loan
Land usage right of XingDa
HongYe 13815148.22
Mortgage loan
Land usage right of Jiangxi Konka 10134593.27 Original shareholder guaranteemortgage
Land use right of Konka
Guangming 5612493.83
Mortgage loan
Total 376579273.20
168Konka Group Co. Ltd. Interim Report 2022
21. Development Expenses
Ending
Increase Decrease
balance
Tran
sferr
Recog ed
Opening O nized into O
Item Internal
balance th as the th
development
er intang curr er
costs
s ible ent s
assets profi
t or
loss
Performance
improvement
project of 13635816.63 693019.26 14328835.89
MINI &
MICRO LED
Self-
development 3234494.07 3618937.32 6853431.39
of chips
Total 16870310.70 4311956.58 21182267.28
22. Goodwill
(1) Original Carrying Value of Goodwill
Increase Decrease
Formed
Name of
Opening due to Ot Ot
the Ending balance
balance business he Disposal her
investees
combinati rs s
on
Jiangxi 340111933.01 340111933.01
Konka
XingDa 44156682.25 44156682.25
HongYe
Total 384268615.26 384268615.26
(2) Provisions for Goodwill Impairment
169Konka Group Co. Ltd. Interim Report 2022
Name of Increase Decrease
Opening
the Other Dispos Oth Ending balance
balance Provision
investees s al ers
Jiangxi 340111933.01 340111933.01
Konka
XingDa 21959947.14 21959947.14
HongYe
Total 362071880.15 362071880.15
(3) Information on the Assets Groups or Combination of Assets Groups which Goodwill Belongs
to
The asset group or combination of asset groups in which the goodwill is located is the
composition of all main business operating tangible assets and identifiable intangible assets
(excluding working capital and non-operating assets) reflected in the balance sheet of the
corresponding subsidiary and related to goodwill Asset group. As of 30 June 2022 there were no
specific signs of impairment during the reporting period and no provision for impairment was
required.
23. Long-term Deferred Expenses
Other
Beginning Amortization
Item Increased decreased Ending balance
balance amount
amount
Renov
ation 236571769.59 30482087.54 18423669.96 799399.90 247830787.27
costs
Shopp
e 20710094.41 9309544.49 10669985.12 151251.17 19198402.61
expens
e
Others 40215519.39 26899124.53 11795484.67 3113715.43 52205443.82
Total 297497383.39 66690756.56 40889139.75 4064366.50 319234633.70
24. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets without Offset
Item Ending balance Beginning balance
170Konka Group Co. Ltd. Interim Report 2022
Deferred
Deductible Deductible Deferred income
income tax
temporary temporary tax liabilities
liabilities
difference difference assets
assets
Deductible 2135882022.03 414952230.90 1662487029.88 294364103.95
losses
Assets
impairment 1533384176.11 348864883.98 1495008640.79 341517549.45
provision
Deferred 51456483.86 12807870.97 54518127.50 13573281.87
Income
Accrued 181382754.97 36460801.61 211674351.84 47600301.64
expenses
Unrealized
internal sales 74633538.20 17110776.24 34369797.29 8592449.32
profits
Others 102367469.24 24937571.58 95608084.94 19668038.87
Total 4079106444.41 855134135.28 3553666032.24 725315725.10
(2) Lists of Deferred Income Tax Liabilities without Offset
Ending balance Beginning balance
Deferred Deferred
Taxable Taxable
Item income tax income tax
temporary temporary
liabilities liabilities
difference difference
Liability Liability
Estimated added
value of assets not
206301023.3443885643.01225287542.6146262753.72
under the same
control
Prepaid interest 68993424.86 17248356.21 51003370.16 12750842.54
Accelerated
depreciation of 3664731.64 765257.91 6990324.63 1596656.16
fixed assets
Others 71047225.75 17278976.68 65137318.19 16284329.55
Total 350006405.59 79178233.81 348418555.59 76894581.97
(3) List of Unrecognized Deferred Income Tax Assets
Item Ending balance Beginning balance
Deductible losses 2645130439.00 2210991564.05
171Konka Group Co. Ltd. Interim Report 2022
Deductible temporary
difference 2020657733.61 2024354413.51
Total 4665788172.61 4235345977.56
(4) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following
Years
Year Ending amount Remarks
2022337945143.94
2023145560403.37
2024154406161.97
2025589213126.47
2026416983845.18
2027 and following years 1001021758.07
Total 2645130439.00
25. Other Non-current Assets
Ending balance
Item Impairment
Carrying balance Carrying value
provision
Prepayment for 1029317896.04 1029317896.04
land-purchase
Prepayment for
construction 76955452.02 76955452.02
equipment and other
long-term assets
Entrusted loans
Construction of
government projects
Total 1106273348.06 1106273348.06
(Continued)
Opening balance
Item Impairment
Carrying balance Carrying value
provision
Prepayment for 2584957360.50 2584957360.50
land-purchase
Prepayment for 63573129.62 63573129.62
construction
172Konka Group Co. Ltd. Interim Report 2022
Opening balance
Item Impairment
Carrying balance Carrying value
provision
equipment and other
long-term assets
Entrusted loans
Construction of
government projects
Total 2648530490.12 2648530490.12
26. Short-term Borrowings
(1) Category of Short-term Borrowings
Item Ending balance Opening balance Note
Credit loan 8024477565.64 7178420980.60
Guarantee loan 1633418300.71 2382534766.48 a)b)c)d)e)f)g)
Mortgage loan 432299020.24 359719374.00 h)i)j)k)l)
Total 10090194886.59 9920675121.08
a) The Company provides joint and several liability guarantee for the short-term borrowings
totaling RMB839402882.13 to its subsidiaries Anhui Konka Sichuan Konka Anhui
Tongchuang Electronics Technology Jiangxi Konka Jiangxi High-permeability Substrate
Xinfeng Microcrystalline Liaoyang Kangshun Yibin Smart and Kowin Memory (Shenzhen).b) The Company has obtained short-term borrowings amounting to RMB373333.33 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.c) The Company's subsidiary Konka Ventures has obtained short-term borrowings amounting
to RMB600000.00 from Shenzhen Technology Sub-branch of Bank of Hangzhou Co. Ltd. for
which Shenzhen High-tech Investment and Financing Guarantee Co. Ltd. provides guarantee.d) The Company's subsidiary Konka Ventures has obtained short-term borrowings
amounting to RMB8700000.00 from Shenzhen Futian Sub-branch of Bank of China Co. Ltd.for which Shenzhen SME Financing Guarantee Co. Ltd. provides guarantee.e) The Company's subsidiary Ningbo Khr Electric Appliance Co. Ltd. has obtained short-
term borrowings amounting to RMB50000000.00 from Cixi Branch of Bank of China Limited
173Konka Group Co. Ltd. Interim Report 2022
for which the Company and Korea Electric Group Co. Ltd. provide joint and several liability
guarantee at the proportion of 60% and 40% respectively.f) The Company's subsidiary Ningbo Khr Electric Appliance Co. Ltd. has obtained short-
term borrowings amounting to RMB30000000.00 from Cixi Central District Sub-branch of
Bank of Ningbo Co. Ltd. for which the Company and Korea Electric Group Co. Ltd. provide
joint and several liability guarantee at a ratio of 3:2.g) The Company's subsidiary Hong Kong Konka has obtained short-term borrowings
amounting to USD30000000.00 (equivalent to RMB201342085.25) from Shenzhen Branch of
China Zheshang Bank Co. Ltd. for which the Company provides joint and several liability
guarantee.h) The Company's subsidiary XingDa HongYe has obtained short-term borrowings
amounting to RMB95000000.00 from Zhongshan Fusha Sub-branch of Zhongshan Rural
Commercial Bank for which it provides land use rights of a carrying value of
RMB13815148.22 and buildings of a carrying value of RMB35852318.78 as mortgage and
certificates of time deposit of RMB19800000.00 as pledge and Hu Zehong provides joint and
several liability guarantee.i) The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to
RMB222194538.70 from Chuzhou Branch of Bank of China Limited for which it provides land
use rights of a carrying value of RMB37064265.33 and fixed assets of a carrying value of
RMB428376877.37 as mortgage.j) The Company's subsidiary Anhui Konka has obtained short-term borrowings amounting to
USD5595708.36 (equivalent to RMB37555037.09) from Chuzhou Branch of Bank of China
Limited for which it provides land use rights of a carrying value of RMB37064265.33 and fixed
assets of RMB428376877.37 as mortgage.k) The Company's subsidiary Anhui Electrical Appliance has obtained short-term borrowings
amounting to RMB37500000.00 from Hefei Branch of China ZheShang Bank for which it
provides buildings of a carrying value of RMB88015544.30 and land use rights of a carrying
value of RMB66764392.50 of the Company's subsidiary Henan Frestec Refrigeration Appliance
Co. Ltd. as mortgage and the 210 million equities in Henan Frestec Household Appliances Co.Ltd. 123051096 equities in Henan Frestec Refrigeration Appliance Co. Ltd. and 668637700
equities in Henan Frestec Electrical Appliances Co. Ltd. it holds as pledge.l) The Company's subsidiary Jiangsu Konka Smart has obtained short-term borrowings
amounting to RMB40049444.45 from Changzhou Branch of China ZheShang Bank Co. Ltd.
174Konka Group Co. Ltd. Interim Report 2022
for which it provides buildings of a carrying value of RMB39453997.39 and land use rights of
RMB14453262.78 as mortgage.
(2) Outstanding Short-term Borrowings Overdue
There were no outstanding short-term borrowings overdue at the period-end.
27. Notes Payable
Category Ending balance Opening balance
Bank’s acceptance bill 918451201.16 729653866.95
Commercial acceptance bill 214736964.29 386683091.96
Total 1133188165.45 1116336958.91
28. Accounts Payable
(1) List of Accounts Payable
Item Ending balance Opening balance
Within 1 year 2192583979.74 3479614154.99
1 to 2 years 263468989.22 187662627.95
2 to 3 years 149737886.44 85964325.66
Over 3 years 37635955.02 31073982.81
Total 2643426810.42 3784315091.41
29. Contract Liabilities
Item Ending balance Opening balance
Sales advances received 711366769.35 652910408.02
Total 711366769.35 652910408.02
30. Payroll Payable
(1) List of Payroll Payable
Beginning
Item Increased Decreased Ending balance
balance
List of
Short-term 409391936.17 680192334.37 908460659.21 181123611.33
Salary
Post-
employment
benefit- 1203348.63 56054347.94 56740989.17 516707.40
defined
contribution
175Konka Group Co. Ltd. Interim Report 2022
Beginning
Item Increased Decreased Ending balance
balance
plans
Termination 151800.00 14577347.98 14539646.36 189501.62
benefits
Current
portion of
other
benefits
Total 410747084.80 750824030.29 979741294.74 181829820.35
(2) List of Short-term Salary
Beginning
Item Increased Decreased Ending balance
balance
Salary bonus
allowance 399855780.86 589744896.85 817340366.01 172260311.70
subsidy
Welfare for 952201.64 26765768.27 22971977.88 4745992.03
employees
Social security 1256304.20 26571970.63 27378449.93 449824.90
expense
Of which:
Medical 955995.78 23681976.44 24466926.93 171045.29
insurance
premiums
Work-
related injury 68005.10 1791107.08 1715951.17 143161.01
insurance
Maternity 232303.32 1098887.11 1195571.83 135618.60
insurance
Housing fund 137726.03 25340998.61 25432171.73 46552.91
Labor union
budget and
employee 6703757.33 5968203.83 9554898.63 3117062.53
education
budget
Short-term
absence with
176Konka Group Co. Ltd. Interim Report 2022
Beginning
Item Increased Decreased Ending balance
balance
payment
Short-term
profit sharing
plan
Others 486166.11 5800496.18 5782795.03 503867.26
Total 409391936.17 680192334.37 908460659.21 181123611.33
(3) List of Defined Contribution Plan
Beginning
Item Increased Decreased Ending balance
balance
Basic pension 1109814.46 54774941.89 55373982.51 510773.84
benefits
Unemployment 93534.17 1279406.05 1367006.66 5933.56
insurance
Annuity
Total 1203348.63 56054347.94 56740989.17 516707.40
31. Taxes Payable
Item Ending balance Beginning balance
Corporate income tax 152350658.23 168026929.08
VAT 72068785.98 59692464.80
Fund for disposing abandoned 22165538.00
appliances and electronic products 30077111.00
Urban maintenance and construction 3838220.12
tax 3696423.98
Education fees and local education 2855755.44
Surcharge 2840889.56
Stamp duty 2850389.19 6255372.18
Land use tax 9882447.76 8812080.36
Individual income tax 2445096.29 9602569.88
Property tax 4397205.10 4287226.80
Tariff 1827436.25 1962596.87
Others 487336.76 571505.90
Total 275168869.12 295825170.41
32. Other payables
177Konka Group Co. Ltd. Interim Report 2022
Item Ending balance Beginning balance
Interest payable 88023792.80 174383177.08
Other Payables 1304121621.07 1613794571.51
Total 1392145413.87 1788177748.59
32.1. Interests payable
Item Ending balance Beginning balance
Interest on corporate bonds 85585555.62 171218888.92
Interest on long-term borrowings with
interest paid by installment and 340309.14
principal paid at maturity
Interest payable on short-term 2097928.04 3164288.16
borrowings
Total 88023792.80 174383177.08
32.2 Other payables
(1) Listed by Nature of Account
Item Ending balance Beginning balance
Expenses payable 549614012.77 755393561.40
Related party borrowing 165071148.34 313104212.26
Cash deposit and front 249776731.65 240638514.04
Come-and-go money 162997650.90 177524073.79
Equity transfer payment 67482796.96 67482796.96
Advance payment 7711699.62 8282111.32
Others 101467580.83 51369301.74
Total 1304121621.07 1613794571.51
(2) Other Significant Payables Aging over One Year
Item Unpaid/Un-carry-over
Ending balance
reason
Equity transfer money of Jiangxi Not meet the settlement
Konka 61180000.00 conditions
Total 61180000.00
33. Current Portion of Non-current Liabilities
Item Ending balance Beginning balance
Current portion of long-term
borrowings 197476406.03 2087374444.43
178Konka Group Co. Ltd. Interim Report 2022
Item Ending balance Beginning balance
Current portion of long-term payables 155856358.05 270119697.71
Current portion of bonds payables 700000000.00 2700000000.00
Current portion of lease liabilities 18580455.76 32092127.18
Total 1071913219.84 5089586269.32
34. Other current liabilities
Item Ending balance Beginning balance
Accounts payable with trade 120059255.05 63854223.36
acceptance notes
Refunds payable 24448137.69 30629396.14
Tax to be charged off 17870862.23 15258568.74
Total 162378254.97 109742188.24
35. Long-term Borrowings
(1) Category of Long-term Borrowings
Item Ending balance Opening balance Note
Guarantee loan 2721257336.32 3185072777.76 a)b)c)d)e)f)
Mortgage loan 527933682.55 638086279.01 g)h)i)
Entrusted borrowings 3469478777.76 1322271760.09 j)
Credit loan 1693252666.66 471084166.66
Pledge loan 31000000.00 k)l)
Less: Current portion 197476406.03 2087374444.43
Total 8245446057.26 3529140539.09
a) The Company has obtained long-term borrowings amounting to RMB1000875000.00
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.b) The Company has obtained long-term borrowings amounting to RMB1496661111.10
from Shenzhen Branch of China Guangfa Bank Co. Ltd. the term of which is from 24 June 2021
to 23 June 2024 and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.c) The Company's subsidiary XingDa HongYe has obtained long-term borrowings
amounting to RMB52884400.00 from Zhuhai Branch of Xiamen International Bank Co. Ltd.
179Konka Group Co. Ltd. Interim Report 2022
the term of which is from 25 February 2022 to 23 February 2024 and for which the Company
provides joint and several liability guarantee at the maximum amount.d) The Company's subsidiary Anhui Konka Electronic Co. Ltd. has obtained long-term
borrowings amounting to RMB70060245.22 from Chuzhou Plaza Sub-branch of China
Construction Bank Co. Ltd. the term of which is from 29 October 2021 to 26 October 2026 and
for which the Company provides joint and several liability guarantee.e) The Company's subsidiary Konka Xinyun Semiconductor Technology (Yancheng) Co.Ltd. has obtained long-term borrowings amounting to RMB82776580.00 from Yancheng Branch
of HuaXia Bank Co. Ltd. the term of which is from 15 September 2021 to 21 August 2026 and
for which the Company and its subsidiary Kowin Memory Technology (Shenzhen) Co. Limited
provide joint and several liability guarantee at the maximum amount.f) The Company's subsidiary Ningbo Khr has obtained long-term borrowings amounting to
RMB18000000.00 from Cixi Central District Sub-branch of Bank of Ningbo the term of which
is from 12 August 2021 to 9 September 2022 and for which the Company and Korea Electric
Group Co. Ltd. provide joint and several liability guarantee at a ratio of 3:2.g) The Company has obtained long-term borrowings amounting to RMB248571405.88
from Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co. Ltd. the term of which is
from 22 January 2021 to 22 January 2026 and for which it provides land use rights of a carrying
value of RMB5612493.83 and investment properties of a carrying value of RMB106335030.70
and housing buildings of a carrying value of RMB77229221.63 as mortgage.h) The Company's subsidiary Dongguan Konka has obtained long-term borrowings
amounting to RMB201679803.72 from Dongguan Fenggang Sub-branch of Agricultural Bank of
China Co. Ltd. the term of which is from 22 June 2021 to 21 October 2030 and for which it
provides land use rights of a carrying value of RMB191936448.67 as mortgage and the
Company provides joint and several liability guarantee.i) The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB77682472.95 from Chuzhou Branch of Industrial Bank Co. Ltd. of which the term is from
16 July 2021 to 15 July 2031 and for which it provides land use rights of a carrying value of
RMB18609690.67 and fixed assets of a carrying value of RMB192464279.08 as mortgage and
the Company provides joint and several liability guarantee.j) The Company's parent company OCT Group has extended entrusted loans amounting to
RMB3469478777.76 to the Company through China Merchants Bank Co. Ltd. the term of
which is from 9 October 2021 to 25 February 2024.
180Konka Group Co. Ltd. Interim Report 2022
k) Yibin Kangrun Medical (a subsidiary of the Company) has obtained long-term
borrowings amounting to RMB15500000.00 from Yibin Sub-Branch of Postal Savings Bank of
China Co. Ltd. with the accounts receivable arising from the prospective earnings
(RMB595900000.00) from a concession contract of medical waste treatment project in Gaoxian
County Yibin City as pledge and the term thereof is from 30 June 2022 to 15 April 2024.l) Yibin Kangrun Medical (a subsidiary of the Company) has obtained long-term borrowings
amounting to RMB15500000.00 from Yibin Sub-Branch of Industrial and Commercial Bank of
China Co. Ltd. with the accounts receivable arising from the prospective earnings
(RMB595900000.00) from a concession contract of medical waste treatment project in Gaoxian
County Yibin City as pledge and the term thereof is from 30 June 2022 to 15 April 2024.
36. Bonds Payable
(1) List of Bonds Payable
Item Ending balance Beginning balance
Non-public offering corporate
2995579140.504993698899.30
bonds
Less: Bonds payable due
700000000.002700000000.00
within 1 year
Total 2295579140.50 2293698899.30
(2) Changes of Bonds Payable (Excluding Other Financial Instruments Divided as Financial
Liabilities such as Preferred Shares and Perpetual Bonds)
Bonds Issuing
Total par value Duration Issuing amount Beginning balance
name date
19Konka0 1500000000.00 2019/1/14 3 years 1494750000.00 1500000000.00
2 (note* )
19Konka0 500000000.00 2019/6/3 3 years 498250000.00 499770702.34
4 (note* )
19Konka0 700000000.00 2019/7/22 3 years 697550000.00 699614779.74
6 (note* )
21Konka0 1000000000.00 2021/1/8 3 years 996500000.00 997798742.17
1 (note* )
21Konka0 500000000.00 2021/5/21 3 years 498250000.00 498715932.92
2 (note* )
21Konka0 800000000.00 2021/7/9 3 years 797200000.00 797798742.13
3 (note* )
Total 5000000000.00 4982500000.00 4993698899.30
181Konka Group Co. Ltd. Interim Report 2022
(Continued)
Amortization of
Issued during the Withdraw interest at
Bonds name premium and
Reporting Period face value
discount
19Konka02 (note* ) 3125000.00
19Konka04 (note* ) 9791666.69 229297.66
19Konka06 (note* ) 16450000.02 385220.26
21Konka01 (note* ) 22300000.02 550314.48
21Konka02 (note* ) 10000000.02 275157.24
21Konka03 (note* ) 15799999.98 440251.56
Total 77466666.73 1880241.20
(Continued)
Repay during the Reporting
Bonds name Ending balance
Period
19Konka02 (note* ) 1500000000.00
19Konka04 (note* ) 500000000.00
19Konka06 (note* ) 700000000.00
21Konka01 (note* ) 998349056.65
21Konka02 (note* ) 498991090.16
21Konka03 (note* ) 798238993.69
Total 2000000000.00 2995579140.50
Note 1:
* On 14 January 2019 the Company issued RMB1.5 billion of private placement corporate
bonds with the duration of 3 years the annual interest rate of 5.00% and the due date of 14
January 2022. "19 Konka 02" has been fully paid and delisted from the exchange on 14 January
2022.
* On 3 June 2019 the Company issued RMB500 million of private placement corporate bonds
with the duration of 3 years the annual interest rate of 4.70% and the due date of 3 June 2022."19 Konka 04" has been fully paid and delisted from the exchange on 3 June 2022.* On 22 July 2019 the Company issued RMB700 million of private placement corporate bonds
with the duration of 3 years the annual interest rate of 4.70% and the due date of 22 July 2022.* On 8 January 2021 the Company issued RMB1 billion of private placement corporate bonds
with the duration of 3 years the annual interest rate of 4.46% and the due date of 8 January 2024.* On 21 May 2021 the Company issued RMB500 million of private placement corporate bonds
182Konka Group Co. Ltd. Interim Report 2022
with the duration of 3 years the annual interest rate of 4.00% and the due date of 21 May 2024.* On 9 July 2021 the Company issued RMB800 million of private placement corporate bonds
with the duration of 3 years the annual interest rate of 3.95% and the due date of 9 July 2024.Note 2: OCT Group provided full-amount unconditional and irrevocable joint and several
liability guarantee for the due payment of the private offering of corporate bonds.
37. Lease Liabilities
Item Ending balance Beginning balance
Lease liabilities 70197409.60 74624996.81
Less: Lease liabilities due 18580455.76 32092127.18
within 1 year (see Note VI-33)
Total 51616953.84 42532869.63
38. Long-term Payables
Nature Ending balance Opening balance
Accrued financing lease outlay 304774617.06 434481614.08
Less: Unrecognized financing 12517744.35 23674345.59
expenses
Less: Current portion (see Note 155856358.05 270119697.71
VI-33)
Total 136400514.66 140687570.78
39. Long-term Payroll Payable
(1) Classification
Item Ending balance Beginning balance
Termination benefits-net liabilities of
defined contribution plans 5029726.81 5111296.75
Total 5029726.81 5111296.75
40. Provisions
Item Ending balance Beginning balance Reason for
formation
Product quality After-sales of106147658.31 106069944.34
assurance household appliances
Pending litigation 206591.51 206591.51
Total 106354249.82 106276535.85
183Konka Group Co. Ltd. Interim Report 2022
41. Deferred Income
Item Beginning balance Increased Decreased Ending balance Reason for formation
Government grants 206302424.92 78247601.42 22068617.74 262481408.60 Related to assets/income
Total 206302424.92 78247601.42 22068617.74 262481408.60
(1) Category of Deferred Income
Amount
Amount
included in Related to
included in other
List of Government Subsidy Opening balance Increase non-operating Other changes Ending balance assets/
income this
income this income
period
period
Plant construction subsidy for
Yibin Konka Industrial Park 71448167.88 36489600.00 913032.95 107024734.93
Related to
income
Special subsidy for Yibin Project
4583311.51 21088001.42 25671312.93Related to
assets
Subsidy for industrial R&D
20000000.00 20000000.00Related to
assets
Returned payments for land by
Chongqing Konka 18720000.03 196363.62 18523636.41
Related to
income
Plant decoration subsidy for Yibin Related to
Konka Industrial Park 12952939.23 719607.72 12233331.51assets
184Konka Group Co. Ltd. Interim Report 2022
Amount
Amount
included in Related to
included in other
List of Government Subsidy Opening balance Increase non-operating Other changes Ending balance assets/
income this
income this income
period
period
Subsidy for high-tech innovation 11373198.33 327491.68 11045706.65Related to
and operation in Yancheng assets
Related to
Other government grants 67224807.94 20670000.00 11382121.77 8530000.00 67982686.17assets/
income
Total 206302424.92 78247601.42 13538617.74 8530000.00 262481408.60
185Konka Group Co. Ltd. Interim Report 2022
42. Other non-current liabilities
Item Ending balance Beginning balance
Contract liabilities over one 104610663.7685210503.30
year
Total 85210503.30 104610663.76
43. Share capital
Increase/decrease (+/-)
B
o
Bonus
New n Sub
Item Beginning balance issue Oth Ending balance
shares us tota
from ers
issued sh l
profit
ar
es
Total
shares 2407945408.00 2407945408.00
44. Capital Reserves
Item Beginning balance Increased Decreased Ending balance
Other capital 234389963.10 135296760.09 2854608.30 366832114.89
reserves
Total 234389963.10 135296760.09 2854608.30 366832114.89
Note: Capital reserves for the current period - other capital reserves increase and decrease due to
the main reasons:
* Other capital reserves increased by RMB135296760.09 due to the increase in capital and
shares by the associated enterprise Econ Technology.* Other capital reserves decreased by RMB2854608.30 due to the disposal of the associated
enterprise Guangdong Chutian Dragon Smart Card Co. Ltd.
186Konka Group Co. Ltd. Interim Report 2022
45. Other Comprehensive Income
Reporting Period
Less: Less:
Recorded in Recorded in
other other
comprehensi comprehens Less:
Attributable to
ve income in ive income Inco Attributable to
Beginning Income before owners of the
Item prior period in prior me non-controlling Ending balance
balance taxation in the Company as
and period and tax interests after
Current Period the parent
transferred transferred expe tax
after tax
in profit or in retained nse
loss in the earnings in
Current the Current
Period Period
I. Items that will not
be reclassified to profit -6398878.20 -6398878.20
or loss
Changes in fair
value of other equity -6398878.20 -6398878.20
instrument investment
Others
II. Items that will be -13937209.67 4109281.36 3289330.41 819950.95 -10647879.26
reclassified to profit or
187Konka Group Co. Ltd. Interim Report 2022
Reporting Period
Less: Less:
Recorded in Recorded in
other other
comprehensi comprehens Less:
Attributable to
ve income in ive income Inco Attributable to
Beginning Income before owners of the
Item prior period in prior me non-controlling Ending balance
balance taxation in the Company as
and period and tax interests after
Current Period the parent
transferred transferred expe tax
after tax
in profit or in retained nse
loss in the earnings in
Current the Current
Period Period
loss
Of which: Other
comprehensive income
that will be -1215133.65 -38929.34 -38929.34 -1254062.99
reclassified to profit or
loss under the equity
method
Differences arising
from the translation of -12722076.02 4148210.70 3328259.75 819950.95 -9393816.27
foreign currency
188Konka Group Co. Ltd. Interim Report 2022
Reporting Period
Less: Less:
Recorded in Recorded in
other other
comprehensi comprehens Less:
Attributable to
ve income in ive income Inco Attributable to
Beginning Income before owners of the
Item prior period in prior me non-controlling Ending balance
balance taxation in the Company as
and period and tax interests after
Current Period the parent
transferred transferred expe tax
after tax
in profit or in retained nse
loss in the earnings in
Current the Current
Period Period
denominated financial
statements
Total Other
Comprehensive -20336087.87 4109281.36 3289330.41 819950.95 -17046757.46
Income
189Konka Group Co. Ltd. Interim Report 2022
46. Surplus Reserves
Item Beginning balance Increased Decreased Ending balance
Statutory surplus 1005961774.19 1005961774.19
reserves
Discretional surplus 238218590.05 238218590.05
reserves
Total 1244180364.24 1244180364.24
47. Retained Earnings
Item Reporting Period Same period of last year
Ending balance of last period 5229098788.94 4595371391.63
Add: Total beginning balance of retained
earnings before adjustments
Of which: change of accounting policy
Other adjustment factors
Beginning balance of the Reporting 5229098788.94 4595371391.63
Period
Add: Net profit attributable to owners of 172818438.83 905352997.68
the Company as the parent
Retained incomes carried forward 1628195.00
from other comprehensive income
Less: Withdrawal of statutory surplus 32459254.57
reserves
Withdrawal of discretional surplus
reserves
Dividend of ordinary shares payable 120397270.40 240794540.80
Ending balance of this period 5281519957.37 5229098788.94
48. Operating Revenue and Cost of Sales
(1) Operating Revenue and Cost of Sales
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main
operation 16243380757.24 16013632913.79 21412726539.67 20510002960.62
s
190Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same period of last year
Other
operation 652089519.57 468807708.05 397435333.41 307172753.16
s
Total 16895470276.81 16482440621.84 21810161873.08 20817175713.78
(2) Main Operations (Classified by product)
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Supply
chain 10171407159.62 10120679704.92 12184495984.54 12079110369.50
trading
business
Color
TV 2389828778.20 2418706246.97 3190601881.06 3017183364.20
business
Environ
mental
protecti 774458509.72 749206296.93 2724186133.96 2439448446.23
on
business
Consum
er
applianc 1900207771.57 1711652138.98 1752194252.46 1608490566.46
es
business
PCB 291397810.91 280056849.29 365622811.21 337306983.48
business
Semi-
conduct 50916083.90 52958914.59 241973760.06 229060263.71
or
business
Others 665164643.32 680372762.11 953651716.38 799402967.04
Total 16243380757.24 16013632913.79 21412726539.67 20510002960.62
49. Taxes and Surtaxes
Item Reporting Period Same period of last year
191Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same period of last year
Stamp duty 15956693.35 17210974.34
Land use tax 13241507.04 12591947.22
Urban maintenance and
8149278.825272168.22
construction tax
Property tax 9150456.54 4521990.47
Education surcharge 3669080.87 2252651.83
Local education surcharge 2445857.60 1295806.68
Water resources fund 228825.54 98737.91
Others 443271.42 1212085.27
Total 53284971.18 44456361.94
50. Selling Expense
Item Reporting Period Same period of last year
Payroll 159102544.06 179194691.52
Advertising expense 141115130.40 143443247.26
Promotional activities 72748154.60 93916189.20
Warranty fee 79063725.82 95238254.77
Logistic Fee 30314056.31 57131056.01
Taxes and fund 26642413.92 26084857.60
Rental charges 12385615.94 13812228.32
Business travel charges 7448071.22 9695834.71
Business entertainment expenses 5435508.51 6473826.73
Exhibition expenses 1713164.44 2675578.55
Others 24257299.06 39996271.80
Total 560225684.28 667662036.47
51. Administrative Expense
Item Reporting Period Same period of last year
Payroll 213795836.28 172124998.88
Depreciation charge 71715060.26 55861222.66
Intermediary fees 17693182.52 24599241.61
Business travel charges 3765905.28 8275347.12
192Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same period of last year
Water & electricity fees 5296977.22 5392545.21
Loss on scraping of inventories 2086492.21 2246719.29
Others 39955230.74 90553592.30
Total 354308684.51 359053667.07
52. R&D Expense
Item Reporting Period Same period of last year
Salary 119288045.71 141474094.27
Others 118060480.85 143189372.99
Total 237348526.56 284663467.26
53. Finance Costs
Item Reporting Period Same period of last year
Interest expense 465576348.06 488330464.76
Less: Interest income 109353054.39 78303181.42
Add: Exchange loss -114830078.08 28226971.34
Other 25722111.99 21161528.03
Total 267115327.58 459415782.71
54. Other Income
Resources Reporting Period Same period of last year
Support fund 227351711.98 342585919.00
Rewards and subsidies 90960177.86 116820277.53
Transfer of deferred income 13538617.74 247958151.57
Software tax rebates 7949955.87 6085265.89
Post subsidies 2253703.66 2426398.00
Land tax rebates 1433605.93 4728544.03
L/C export subsidy 249549.87 91800.00
Total 343737322.91 720696356.02
55. Investment Income
Item Reporting Period Same period of last year
Long-term equity investment
income measured by equity 59402481.72 19335816.88
method
193Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same period of last year
Investment income from
disposal of long-term equity 406299201.96 177579605.00
investment
Income from remeasurement of
residual stock rights at fair 239092140.86 68185019.88
value after losing control power
Interest income from holding of 32966971.77 34566759.25
debt investments
Investment income from
disposal of financial assets at 42739.74 22577111.88
fair value through current profit
or loss
Total 737803536.05 322244312.89
56. Gain on Changes in Fair Value
Sources Reporting Period Same period of last year
Financial assets at fair value
through profit or loss -638799.36 40362513.73
Total -638799.36 40362513.73
57. Credit Impairment Loss
Item Reporting Period Same period of last year
Loss on bad debts of notes 7050461.27 19146640.03
receivable
Bad debt losses of accounts -42299060.06 -64007725.46
receivable
Bad debt losses of other -43359714.77 -26531092.63
receivables
Total -78608313.56 -71392178.06
58. Asset Impairment Loss
Item Reporting Period Same period of last year
Inventory depreciation loss and
contract performance cost -13309988.75 -10573236.91
impairment loss
194Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same period of last year
Contractual asset impairment loss -18965495.91
Total -13309988.75 -29538732.82
59. Asset Disposal Income (“－” for loss)
Amount
recorded in the
Reporting Same period of
Item current non-
Period last year
recurring profit
or loss
Incomes from disposal of non-current
assets 12782328.52 88668.35 12782328.52
Including: incomes from disposal of
non-current assets not classified as the 12782328.52 88668.35 12782328.52
held-for-sale assets
Of which: Fixed assets disposal
income -75972.28 88668.35 -75972.28
Right-of-use assets
disposal income 14904.57 14904.57
Intangible assets disposal
income 12843396.23 12843396.23
Total 12782328.52 88668.35 12782328.52
60. Non-operating Income
(1) List of Non-operating Income
Amount recorded
Same Period of in the current
Item Reporting Period
last year non-recurring
profit or loss
Insurance indemnity 12736400.00
Compensation and penalty income 14518135.77 1884536.59 14518135.77
Government subsidies unrelated to the
normal operation of the Company 200900.00 200900.00
Non-current assets damage and
retirement gains 364917.85 237884.42 364917.85
Gains on debt restructuring 33184.00 544827.07 33184.00
Other 15375604.03 6214629.71 15375604.03
195Konka Group Co. Ltd. Interim Report 2022
Amount recorded
Same Period of in the current
Item Reporting Period
last year non-recurring
profit or loss
Total 30492741.65 21618277.79 30492741.65
61. Non-operating Expense
Amount recorded into
Same Period of the current non-
Item Reporting Period
last year recurring profit or
loss
Losses on damage and 829936.20 437270.73 829936.20
scraping of non-current assets
Compensation expense 955320.82 161680.10 955320.82
Others 2075688.78 6194922.31 2075688.78
Total 3860945.80 6793873.14 3860945.80
62. Income Tax Expense
(1) Lists of Income Tax Expense
Item Reporting Period Same period of last year
Current income tax expense 38695464.05 192219793.73
Deferred income tax expense -127554328.41 -107956525.36
Total -88858864.36 84263268.37
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Item Reporting Period
Profit before taxation -30855657.48
Current income tax expense accounted at statutory/applicable tax rate -7713914.37
Influence of applying different tax rates by subsidiaries -2192800.02
Influence of income tax before adjustment -749229.21
Influence of non-taxable income -103780531.28
Influence of not deductable costs expenses and losses 518868.07
Influence of deductable loss of unrecognized deferred income tax assets in -22338796.65
prior period
Influence of deductable temporary difference or deductable losses of 55552820.20
196Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period
unrecognized deferred income tax in the Reporting Period
Changes in the balance of deferred income tax assets/ liabilities in previous
period due to adjustment of tax rate
Additional deduction of R&D costs -8155281.10
Income tax expense -88858864.36
63. Other Comprehensive Income
Refer to “Note VI-45. Other Comprehensive Income” for details.
64. Cash Flow Statement
(1) Cash Generated from/Used in Other Operating/Investing/Financing Activities
1) Cash Generated from Other Operating Activities
Item Reporting Period Same Period of last year
Income from government
subsidy 398867359.07 448099427.58
Front money and guarantee
deposit 194816415.68 279858364.93
Intercourse funds 71915009.80 164755704.28
Interest income from bank
deposits 38460424.38 37983778.15
Others 49900426.66 53936264.41
Total 753959635.59 984633539.35
2) Cash payments related to other operating activities
Item Reporting Period Same Period of last year
Expense for cash payment 608403775.17 563280960.36
Payment for guarantee deposit
cash deposit 141618948.53 93768423.51
Payment made on behalf 9670660.47 11499654.13
Expense for bank handling
charges 2878961.21 5216732.77
Others 120570024.96 404575413.78
Total 883142370.34 1078341184.55
3) Other cash received from investment activities
Item Reporting Period Same Period of last year
197Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same Period of last year
Recovery of loan at call 2345834176.94 466367371.66
Others 39792247.45 260630141.85
Total 2385626424.39 726997513.51
4) Other cash paid for investment activities
Item Reporting Period Same Period of last year
Payment of loan at call 271583749.03 174930000.00
Others 25736148.70 160869856.00
Total 297319897.73 335799856.00
5) Other cash received from funding activities
Item Reporting Period Same Period of last year
Receiving loan at call 29957440.00 361338700.00
Recovery of margin deposit pledged 68792633.93 197949393.49
Lease-related accounts 34000000.00
Others 23432.92 2070691.00
Total 98773506.85 595358784.49
6) Cash Used in Other Financing Activities
Item Reporting Period Same Period of last year
Payment of lease-related accounts 155109520.16 236173947.51
Deposit as margin for pledge 117654180.32 161578386.94
Returing loan at call 117768871.27 29400000.00
Financing cost 21190465.55 18501066.06
Others 1765552.03 34551700.00
Total 413488589.33 480205100.51
(2) Supplemental Information for Consolidated Cash Flow Statement
Item Reporting Period Same Period of last year
1. Reconciliation of net profit to net
cash flows generated from operating
activities
Net profit 58003206.88 90756920.24
Add: Provision for impairment of assets 13309988.75 29538732.82
Credit impairment loss 78608313.56 71392178.06
198Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same Period of last year
Depreciation of fixed assets oil-gas
210447096.53182931196.29
assets and productive biological assets
Depreciation of right-of-use assets 28657676.02 22397201.61
Amortization of intangible assets 22954726.69 38706987.41
Amortization of long-term prepaid
40889139.7543983314.75
expenses
Losses on disposal of fixed assets
intangible assets and other long- -12782328.52 -88668.35
lived assets (gains: negative)
Losses on scrap of fixed assets (gains:
465018.35199386.31
negative)
Losses on changes in fair value (gains:
638799.36-40362513.73
negative)
Finance costs (gains: negative) 439621848.38 449599765.91
Investment loss (gains: negative) -737803536.05 -322244312.89
Decrease in deferred income tax assets
-129818410.18-102340668.15
(gains: negative)
Increase in deferred income tax
2283651.84-5615859.48
liabilities (“-” means decrease)
Decrease in inventories (gains:
25150562.26-648533766.41
negative)
Decrease in accounts receivable
generated from operating activities 803133784.03 -266870721.39
(gains: negative)
Increase in accounts payable used in
-1251480426.64-580252243.46
operating activities (decrease: negative)
Others -13538617.74 -247958151.57
Net cash flow from operating activities -421259506.73 -1284761222.03
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Conversion of debt to capital
Convertible corporate bonds matured
within 1 Year
Fixed asset under finance lease
199Konka Group Co. Ltd. Interim Report 2022
Item Reporting Period Same Period of last year
3. Net increase/decrease of cash and
cash equivalent:
Ending balance of cash 5903519802.47 5159985226.06
Less: Opening balance of cash 5968347219.03 4298056113.24
Plus: Ending balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash equivalents -64827416.56 861929112.82
(3) Net Cash Paid for Acquisition of Subsidiaries
No such cases in the Reporting Period.
(4) Net Cash Receive from Disposal of the Subsidiaries
Item Amount
Cash or cash equivalents received in the Reporting Period from
disposal of subsidiaries in the Current Period 302280000.00
Of which: Sichuan Chengrui 27280000.00
Xi'an Huasheng 220000000.00
Wuhan Industrial Development 55000000.00
Less: cash and cash equivalents held by subsidiaries on the date of
losing control power 5185649.96
Of which: Sichuan Chengrui 1845348.16
Xi'an Huasheng 8334.26
Wuhan Industrial Development 3331967.54
Add: Cash or cash equivalents received in the Reporting Period from
disposal of subsidiaries in the prior period
Net cash received from disposal of subsidiaries 297094350.04
(5) Cash and Cash Equivalents
Item Ending balance Beginning balance
Cash 5903519802.47 5968347219.03
Including: Cash on hand 9.41 363.22
Bank deposit on demand 5903519793.06 5968346855.81
Ending balance of cash and cash 5903519802.47 5968347219.03
equivalents
200Konka Group Co. Ltd. Interim Report 2022
65. Items in the Statement of Changes in Shareholders' Equity
There is no “other” amount to adjust the amount at the end of the previous year in this period.
66. Assets with Restricted Ownership or Right to Use
Item Ending carrying value Reason for restriction
Among them RMB571737827.06 is margin
deposit pledge is used for borrowing or issuing
bank acceptance bill RMB10764266.54 is
Monetary assets 631118593.39 financial supervision account fund;
RMB19800000.00 is fixed deposit that can not
be withdrawn in advance; RMB28816499.79 is
restricted due to other reasons.Notes receivable 373073971.78 The pledge of make out an invoice
Investment property 106335030.70 Mortgage loan
Fixed assets 1198081326.15 Mortgage loan finance lease mortgage
Intangible assets Mortgage loan mortgage guaranteed by the376579273.20
original shareholder
Construction in
progress 78521756.73 Finance lease mortgage
Total 2763709951.95
67. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Ending foreign Ending balance
Item Exchange rate
currency balance converted to RMB
Monetary assets
Of which: USD 77214921.83 6.7114 518220226.37
EUR 2730603.30 7.0084 19137160.17
EGP 10099414.27 0.3570 3605383.45
GBP 1.32 8.1365 10.74
HKD 12160142.39 0.8552 10399232.17
CAD 6.96 5.2058 36.23
PLN 991889.37 1.5016 1489390.47
Accounts receivable
Of which: USD 99275413.45 6.7114 666277009.83
EUR 23449.32 7.0084 164342.21
201Konka Group Co. Ltd. Interim Report 2022
Ending foreign Ending balance
Item Exchange rate
currency balance converted to RMB
EGP 4228915.83 0.3570 1509677.96
HKD 34899944.11 0.8552 29846083.20
AUD 49764.00 4.6145 229635.98
Other receivables
Of which: USD 114917428.94 6.7114 771256832.59
EGP 8000.00 0.3570 2855.91
HKD 892319.00 0.8552 763102.29
YEN 21400000.00 0.0491 1051510.40
Short-term borrowings
Of which: USD 51764004.17 6.7114 347408937.59
Accounts payable
Of which: USD 26802690.35 6.7114 179883576.01
GBP 4419.42 8.1365 35958.61
HKD 4987580.96 0.8552 4265329.36
Other payables
Of which: USD 532849.98 6.7114 3576169.36
EUR 2751663.76 7.0084 19284760.30
EGP 60729.10 0.3570 21679.64
HKD 17985625.82 0.8552 15381127.35
Interest payable
Of which: USD 28048.58 6.7114 188245.24
(2) Notes to Overseas Entities
The significant overseas entities include Hongdin Trading Hong Kong Konka Chain Kingdom
Memory Technologies Kangjietong Jiali International Kowin Memory (Hong Kong) and Konka
Mobility. The main overseas operating place is Hong Kong. The Company’s recording currency is
HKD since the main currency in circulation in Hong Kong is HKD.
68. Government Subsidy
(1) Basic Information on Government Subsidy
Amount recorded in
Category Amount Listed items the current profit or
loss
202Konka Group Co. Ltd. Interim Report 2022
Amount recorded in
Category Amount Listed items the current profit or
loss
263841311.98 DeferredIndustry support funds 227351711.98
revenue/Other income
Deferred
Rewards and subsidies 137702485.28 90960177.86
revenue/Other income
Tax rebates on software 7949955.87 Other income 7949955.87
Land tax rebates 1434080.24 Other income 1433605.93
Post subsidies 2417628.09 Other income 2253703.66
Subsidies for L/C exports 249549.87 Other income 249549.87
Total 413595011.33 330198705.17
(2) Return of Government Subsidy
No such cases in the Reporting Period.
203Konka Group Co. Ltd. Interim Report 2022
VII. Changes of Consolidation Scope
1. Disposal of subsidiary
The differences of
enjoyed net assets
share of the
Equity subsidiary in
Method of
Name of the The equity disposal Time of losing Recognition basis for the time of corresponding
equity
subsidiary disposal price proportio control losing control power consolidated
disposal
n (%) statements of the
disposal price and the
disposal investment
(RMB’0000)
The rights and obligations related
Xi'an 22000.00 100.00 Transfer 2022-6-27 to the underlying equity have been 12128.87
Huasheng
transferred
Wuhan The rights and obligations related
Industrial 5500.00 55.00 Transfer 2022-6-27 to the underlying equity have been 4865.34
Development transferred
The rights and obligations related
Sichuan 2728.00 31.00 Transfer 2022-4-15 to the underlying equity have been 2123.96
Chengrui
transferred
(Continued)
204Konka Group Co. Ltd. Interim Report 2022
Residual Amount of other
Carrying value Recognition method
equity Fair value of comprehensive
of residual Gains or losses from and main assumption
proportion residual equity on income related to
Name of the equity on the re-measurement of of fair value of
on the date the date of losing former subsidiaries
subsidiary date of losing residual equity at fair residual equity on the
of losing control power transferred into
control power value (RMB’0000) date of losing control
control (RMB’0000) investment profit or
(RMB’0000) power
power (%) loss (RMB’0000)
Xi'an
Huasheng
Wuhan
Industrial 45.00 519.27 4500.00 3980.73 Evaluated price
Development
Sichuan
49.00 954.77 4312.00 3357.23 Evaluated price
Chengrui
205Konka Group Co. Ltd. Interim Report 2022
2. Changes in Combination Scope for Other Reasons
(1) Subsidiaries Established by the Company in H1 2022
Time and
Shareholding place of
Method of
Name Registered capital percentage obtaining
obtaining
(%) control
power
Jiangxi Konka High- Newly
tech Park 50000000.00 100.00 2022-4-27 established
Guizhou Konka New Newly
Energy 100000000.00 98.00 2022-2-11 established
Shangrao Konka
Newly
Electronic Technology
established
Innovation 30000000.00 100.00 2022-4-27
Zhejiang Konka Newly
Electronic 30000000.00 100.00 2022-6-20 established
Zhejiang Konka Newly
Technology Industry 30000000.00 100.00 2022-6-20 established
(2) The Company’s Subsidiaries Cancelled and with Distribution of Remaining Assets in H1
2022
Shareholding Liquidation
Name Registered capital
percentage (%) completion time
Shanghai Xinfeng 10664000.00 51.00 2022-2-10
Jiangxi Konka 100000000.00 70.00 2022-5-25
Industrial Park
Ruichang Kangrui 10000000.00 70.00 2022-5-25
Real Estate
(3) Others
* The Company’s subsidiary Hefei KONSEMI introduced strategic investors which caused the
decrease of the Company’s shareholding proportion to 34.46% and transfer of control power. And
it will no longer be included into the consolidation scope.
206Konka Group Co. Ltd. Interim Report 2022
VIII. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
1 Guangdong GuangdongElectronics Technology Manufacturing industry 100 nt or
Shenzhen Shenzhen investment
Establishme
2 Anhui Zhilian Anhui Chuzhou Anhui Chuzhou e-Commerce 100 nt or
investment
Establishme
3 Haimen Konka Jiangsu Nantong Jiangsu Nantong Trade and services 100 nt or
investment
Establishme
4 Sichuan SichuanChengdu Konka Smart Trade and services 100 nt or
Chengdu Chengdu investment
Establishme
5 Chengdu Konka Sichuan Sichuan Manufacturing industry 100 nt or
Electronic Chengdu Chengdu investment
Establishme
6 Computer telecommunications and otherNantong Hongdin Jiangsu Nantong Jiangsu Nantong 100 nt or
electronic equipment manufacturing investment
207Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
7 Guangdong Guangdong Software and information technologyYouzhihui 100 nt or
Shenzhen Shenzhen services investment
Establishme
8 Guangdong GuangdongXiaojia Technology Retail trade 100 nt or
Shenzhen Shenzhen investment
Establishme
9 Liaoyang Kangshun Liaoyang Liaoyang Wholesale 100 nt or
Smart Liaoning Liaoning investment
Establishme
10 Liaoyang Kangshun Liaoyang Liaoyang Comprehensive utilization of renewable 100 nt or
Renewable Liaoning Liaoning resources investment
Establishme
11 Nanjing Konka Jiangsu Nanjing Jiangsu Nanjing Wholesale 100 nt or
investment
Establishme
12 Chuzhou Konka Anhui Chuzhou Anhui Chuzhou Manufacturing industry 94.9 nt or
investment
Establishme
13 Guangdong GuangdongXingDa HongYe Manufacturing industry 51 nt or
Zhongshan Zhongshan investment
14 EstablishmeKonka Circuit Guangdong Guangdong Manufacturing industry 100 nt or
208Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Shenzhen Shenzhen investment
Establishme
15 Konka Soft Electronic Sichuan Suining Sichuan Suining Manufacturing industry 95 nt or
investment
Establishme
16 Konka Hongye Sichuan Suining Sichuan Suining Manufacturing industry 90.1 nt or
Electronics investment
Establishme
17 Guangdong GuangdongBoluo Precision Manufacturing industry 100 nt or
Boluo Boluo investment
Establishme
18 Guangdong GuangdongBoluo Konka Manufacturing industry 100 nt or
Boluo Boluo investment
Establishme
19 Anhui Tongchuang Anhui Chuzhou Anhui Chuzhou Manufacturing industry 100 nt or
investment
Establishme
20 Jiangsu JiangsuJiangsu Konka Smart Manufacturing industry 51 nt or
Changzhou Changzhou investment
Establishme
21 Anhui Electrical Anhui Chuzhou Anhui Chuzhou Manufacturing industry 51 nt or
Appliance investment
209Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
22 Frestec Refrigeration Henan Xinxiang Henan Xinxiang Manufacturing industry 51 nt or
investment
Establishme
23 Frestec Electrical Henan Xinxiang Henan Xinxiang Manufacturing industry 51 nt or
Appliances investment
Establishme
24 Frestec Household Henan Xinxiang Henan Xinxiang Manufacturing industry 51 nt or
Appliances investment
Establishme
25 Frestec Smart Home Henan Xinxiang Henan Xinxiang Manufacturing industry 51 nt or
investment
Establishme
26 Guangdong GuangdongKonka Investment Capital market services 100 nt or
Shenzhen Shenzhen investment
Establishme
27 Yibin Konka Industrial park development and operationSichuan Yibin Sichuan Yibin 100 nt or
Technology Park management investment
Establishme
28 Guangdong GuangdongKonka Capital Capital market services 100 nt or
Shenzhen Shenzhen investment
29 EstablishmeKonka Suiyong Guangdong Guangdong Commercial services 51 nt or
210Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Shenzhen Shenzhen investment
Establishme
30 Guangdong GuangdongShengxing Industrial Commercial services 51 nt or
Shenzhen Shenzhen investment
Establishme
31 Guangdong Guangdong Software and information technologyZhitong Technology 51 nt or
Shenzhen Shenzhen services investment
Establishme
32 Guangdong GuangdongKonka Factoring Insurance agents (non-bank finance) 100 nt or
Shenzhen Shenzhen investment
Establishme
33 Beijing Konka Beijing Beijing Sale of home appliance 100 nt or
Electronic investment
Establishme
34 Tianjin Pilot Free Tianjin Pilot FreeKonka Leasing Service Industry 100 nt or
Trade Zone Trade Zone investment
Establishme
35 Suining Konka Industrial Industrial park development and operationSichuan Suining Sichuan Suining 100 nt or
Park management investment
Suining Electronic Establishme
36 Technological Sichuan Suining Sichuan Suining Commercial services 100 nt or
investment
Innovation
211Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
37 Shanghai Konka Shanghai Shanghai Real estate 100 nt or
investment
Establishme
38 Shandong ShandongYantai Kangjin Real estate 62.8 nt or
Yantai Yantai investment
Establishme
39 Guangdong GuangdongMobile Interconnection Commercial 100 nt or
Shenzhen Shenzhen investment
Establishme
40 Sichuan Konka Sichuan Yibin Sichuan Yibin Manufacturing industry 100 nt or
investment
Establishme
41 Yibin Smart Sichuan Yibin Sichuan Yibin Manufacturing industry 100 nt or
investment
Establishme
42 Guangdong GuangdongShenzhen KONSEMI Semiconductors 100 nt or
Shenzhen Shenzhen investment
Establishme
43 Software and information technologyChongqing Konka Chongqing Chongqing 100 nt or
services investment
44 EstablishmeKowin Memory Guangdong Guangdong Computer telecommunications and other 100 nt or
212Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
(Shenzhen) Shenzhen Shenzhen electronic equipment manufacturing investment
Establishme
45 Kowin Memory (Hong China Hong China Hong Wholesale of computers software and 100 nt or
Kong) Kong Kong auxiliary equipment investment
Establishme
46 Konka Xinyun Yancheng Yancheng Computer telecommunications and other 100 nt or
Semiconductor Jiangsu Jiangsu electronic equipment manufacturing investment
Establishme
47 Industrial and Trade Guangdong Guangdong Wholesale 100 nt or
Technology Shenzhen Shenzhen investment
Establishme
48 Guangdong GuangdongShenzhen Nianhua Commercial services 100 nt or
Shenzhen Shenzhen investment
Establishme
49 Hunan HunanKonka Huazhong Commercial services 100 nt or
Changsha Changsha investment
Establishme
50 Guangdong GuangdongWankaida Software development 100 nt or
Shenzhen Shenzhen investment
Establishme
51 Shenzhen Chuangzhi Guangdong Guangdong Wholesale 100 nt or
Electrical Appliances Shenzhen Shenzhen investment
213Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
52 Suining Jiarun Property Sichuan Suining Sichuan Suining Real estate 100 nt or
investment
Establishme
53 Anhui Konka Anhui Chuzhou Anhui Chuzhou Manufacturing industry 78 nt or
investment
Establishme
54 Kangzhi Trade Anhui Chuzhou Anhui Chuzhou Wholesale 78 nt or
investment
Establishme
55 Telecommunication Guangdong Guangdong Manufacturing industry 75 25 nt or
Technology Shenzhen Shenzhen investment
Establishme
56 China Hong China HongKonka Mobility Commercial 100 nt or
Kong Kong investment
Establishme
57 Guangdong GuangdongDongguan Konka Manufacturing industry 75 25 nt or
Dongguan Dongguan investment
Establishme
58 Suining Konka Smart Sichuan Suining Sichuan Suining Wholesale 100 nt or
investment
59 EstablishmeChongqing Chongqing Chongqing Research & experiment development 75 nt or
214Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Optoelectronic investment
Technology Research
Institute
Establishme
60 Ecological protection and environmentalYibin Kangrun Sichuan Yibin Sichuan Yibin 67 nt or
governance services investment
Establishme
61 Ecological protection and environmentalYibin Kangrun Medical Sichuan Yibin Sichuan Yibin 63.65 nt or
governance services investment
Yibin Kangrun Establishme
62 Ecological protection and environmentalEnvironmental Sichuan Yibin Sichuan Yibin 40.87 nt or
governance services investment
Protection
Establishme
63 Ningbo Kanghr Electrical machinery and equipmentZhejiang Ningbo Zhejiang Ningbo 60 nt or
Electrical Appliance manufacturing investment
Establishme
64 Jiangxi Konka Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51 nt or
investment
Establishme
65 Jiangxi High Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51 nt or
Transparent Substrate investment
66 Jiangsu Konka Special Yancheng Yancheng Wholesale 51 Establishme
215Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Material Jiangsu Jiangsu nt or
investment
Establishme
67 Xinfeng Jiangxi Jiangxi Manufacturing and processing 51 nt or
Microcrystalline Nanchang Nanchang investment
Establishme
68 Konka Huanjia Dalian Liaoning Dalian Liaoning Renewable resources processing trade 51 nt or
investment
Establishme
69 Konka Huanjia (Henan) Henan Lankao Henan Lankao Renewable resources processing trade 51 nt or
investment
Establishme
70 Shaanxi Konka Manufacture of household cleaning andShaanxi Xi’an Shaanxi Xi’an 51 nt or
Intelligent sanitary electrical appliances investment
Establishme
71 Guangdong GuangdongPengrun Technology Trade and services 51 nt or
Shenzhen Shenzhen investment
Establishme
72 China Hong China HongJiaxin Technology Trade and services 51 nt or
Kong Kong investment
Establishme
73 Konka Ronghe Zhejiang Jiaxing Zhejiang Jiaxing Wholesale and retail trade 51 nt or
investment
216Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
74 Recycling processing and sales ofChongqing Kangxingrui Chongqing Chongqing 51 nt or
renewable resources investment
Establishme
75 Chongqing Kangxingrui Recycling processing and sales of wasteChongqing Chongqing 51 nt or
Automobile Recycling resources investment
Establishme
76 Guangdong GuangdongKonka Unifortune Trade and services 51 nt or
Shenzhen Shenzhen investment
Establishme
77 China Hong China HongJiali International Trade and services 51 nt or
Kong Kong investment
Establishme
78 Kangjiatong Sichuan Yibin Sichuan Yibin Trade and services 100 nt or
investment
Kanghong (Yantai) Establishme
79 Shandong Shandong Comprehensive utilization of abandonedEnvironmental 51 nt or
Yantai Yantai resources investment
Protection
Establishme
80 Jiangkang (Shanghai) Shanghai Shanghai Research & experiment development 51 nt or
Technology investment
81 Konka Intelligent Guangdong Guangdong Research & experiment development 51 Establishme
217Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Manufacturing Shenzhen Shenzhen nt or
investment
Establishme
82 Shandong ShandongYantai Laikang Commercial services 51 nt or
Yantai Yantai investment
Establishme
83 Konka Material Hainan Haikou Hainan Haikou Commercial services 100 nt or
investment
Enterprise management consulting Establishme
84 Guangdong GuangdongKonka Ventures incubation management housing leasing 51 nt or
Shenzhen Shenzhen investment
etc.Establishme
85 Yibin Konka Incubator Sichuan Yibin Sichuan Yibin Commercial services 51 nt or
investment
Establishme
86 Shandong Shandong Other professional consultation andYantai Konka 51 nt or
Yantai Yantai investigation investment
Establishme
87 Sichuan SichuanChengdu Anren Enterprise incubation management 51 nt or
Chengdu Chengdu investment
88 Konka Enterprise Guizhou Guizhou EstablishmeEnterprise management consulting 51
Service Guiyang Guiyang nt or
218Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
investment
Establishme
89 Konka Eco- Guangdong Guangdong Commercial services 51 nt or
Development Shenzhen Shenzhen investment
Establishme
90 Germany GermanyKonka Europe International trade 100 nt or
Frankfurt Frankfurt investment
Establishme
91 China Hong China HongHong Kong Konka International trade 100 nt or
Kong Kong investment
Establishme
92 China Hong China HongHongdin Trading International trade 100 nt or
Kong Kong investment
Establishme
93 America AmericaKonka North America International trade 100 nt or
California California investment
Establishme
94 Kanghao Technology Egypt Cairo Egypt Cairo International trade 67 nt or
investment
Establishme
95 China Hong China HongHongdin Invest Investment holding 100 nt or
Kong Kong investment
219Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
96 Chain Kingdom Memory China Hong China Hong International trade 51 nt or
Technologies Kong Kong investment
Chain Kingdom Memory Establishme
97 Guangdong GuangdongTechnologies Trade and services 51 nt or
Shenzhen Shenzhen investment
(Shenzhen)
Establishme
98 China Hong China HongHongjet Trade and services 51 nt or
Kong Kong investment
Establishme
99 Chongqing Xinyuan Science and technology promotion andChongqing Chongqing 75 nt or
Semiconductor application services investment
Establishme
100 Guangdong Guangdong Software and information technologyKangxiaojia Technology 100 nt or
Shenzhen Shenzhen services investment
Establishme
101 Yijiakang Smart Guangdong Guangdong Software and information technology 100 nt or
Terminal Shenzhen Shenzhen services investment
Guizhou Guizhou
Establishme
102 Guizhou Kangkai Qiandongnan Qiandongnan Manufacturing and processing 51 nt or
Material Technology Miao and Dong Miao and Dong investment
Autonomous Autonomous
220Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Prefecture Prefecture
Guizhou Guizhou
Qiannan Buyi Qiannan Buyi Establishme
103 Guizhou Konka New and Miao and Miao Manufacturing and processing 51 nt or
Material Technology investment
Autonomous Autonomous
Prefecture Prefecture
Guizhou Guizhou
Qiannan Buyi Qiannan Buyi Establishme
104 Guizhou Kanggui and Miao and Miao Wholesale and retail trade 100 nt or
Energy investment
Autonomous Autonomous
Prefecture Prefecture
Establishme
105 Lvfeng LvfengGuangdong Xinwei Semiconductors 100 nt or
Guangdong Guangdong investment
Establishme
106 Kangxinrun Renewable Recycling processing and sales ofChongqing Chongqing 51 nt or
Resources renewable resources investment
Guizhou Guizhou
Establishme
107 Guizhou Kanggui Qiannan Buyi Qiannan Buyi Manufacturing and processing 70 nt or
Material Technology and Miao and Miao investment
Autonomous Autonomous
221Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Prefecture Prefecture
Establishme
108 Nantong Kanghai Jiangsu Nantong Jiangsu Nantong Real estate 51 nt or
investment
Establishme
109 Chongqing Kangyiyun Chongqing Chongqing Real estate 80 nt or
investment
Establishme
110 Guangdong GuangdongKanghong Dongsheng Commercial services 95.09 nt or
Shenzhen Shenzhen investment
Establishme
111 Jiangxi Konka Jiangxi Jiangxi Commercial services 100 nt or
Technology Park Shangrao Shangrao investment
Shangrao Konka Establishme
112 Jiangxi JiangxiElectronic Technological Research & experiment development 100 nt or
Shangrao Shangrao investment
Innovation
Guizhou Guizhou
Qiannan Buyi Qiannan Buyi Establishme
113 Guizhou Konka New Manufacture of non-metallic mineraland Miao and Miao 98 nt or
Energy products investment
Autonomous Autonomous
Prefecture Prefecture
222Konka Group Co. Ltd. Interim Report 2022
Holding
Main operating Registration percentage (%) Way of
No. Name Nature of business
place place Direc Indire gaining
tly ctly
Establishme
114 Zhejiang Konka Zhejiang Zhejiang Research & experiment development 100 nt or
Electronic Shaoxing Shaoxing investment
Establishme
115 Zhejiang Konka Zhejiang Zhejiang Commercial services 51 49 nt or
Technology Industry Shaoxing Shaoxing investment
(2) Significant Non-wholly-owned Subsidiary
Shareholding The profit or loss
Declaring dividends Balance of non-
proportion of non- attributable to the
Name distributed to non- controlling interests at
controlling interests non-controlling
controlling interests the period-end
(%) interests
Chain Kingdom Memory Technologies 49.00% 3451062.32 70642626.66
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Ending balance
Name Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liability
Chain Kingdom
Memory 1148408463.11 3267821.83 1151676284.94 1006710417.32 3201455.98 1009911873.30
Technologies
223Konka Group Co. Ltd. Interim Report 2022
(Continued)
Beginning balance
Name Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liability
Chain Kingdom
Memory 1118655030.15 679128.95 1119334159.10 984612731.74 984612731.74
Technologies
(Continued)
Reporting Period
Name Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Chain Kingdom Memory Technologies 3337348013.59 899361.51 7042984.33 -30984221.98
(Continued)
Same period of last year
Name Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Chain Kingdom Memory Technologies 3756519723.85 13367681.89 11903453.19 80536781.65
224Konka Group Co. Ltd. Interim Report 2022
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Holding Accounting
Regi
Main percentage (%) treatment of the
strat
operati Nature of investment to
Name ion
ng business Direc joint venture or
plac Indirectly
place tly associated
e
enterprise
Dongfang
Konka No.1
(Zhuhai) Private Zhu Investment
Zhuhai 49.95 Equity method
Equity hai management
Investment
Fund (LP)
Shenzhen
Professional
Jielunte Shenzh Shen
machinery 42.79 Equity method
Technology Co. en zhen
manufacturing
Ltd.
(2) Main Financial Information of Significant Associated Enterprise
Ending balance/Reporting Period
Dongfang Konka No.1
Item Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co. Ltd.Investment Fund (LP)
Current assets 953194365.22 272906569.19
Non-current assets 222366556.96
Total assets 953194365.22 495273126.15
Current liabilities 880.00 258726574.40
Non-current liabilities 19881055.90
Total liabilities 880.00 278607630.30
Equity of non-controlling interests 8308540.00
Equity attributable to shareholders of 953193485.22 208356955.85
the Company as the parent
Net assets shares calculated at the 476120145.87 89155941.41
shareholding proportion
Adjusted items
- Goodwill
225Konka Group Co. Ltd. Interim Report 2022
Ending balance/Reporting Period
Dongfang Konka No.1
Item Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co. Ltd.Investment Fund (LP)
- Internal unrealized profit
- Others
Carrying value of investment to 471524694.73 93935437.96
associated enterprises
Fair values of equity investments of
joint ventures with quoted prices
Revenue 182061953.26
Financial expenses -229796.85 -1371564.48
Income tax expenses -1984423.47
Net profit -2383969.26 248699.00
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -2383969.26 248699.00
Dividends received from the joint
venture in the current period
(Continued)
Opening balance/The same period of last year
Dongfang Konka No.1
Item Shenzhen Jielunte
(Zhuhai) Private Equity
Technology Co. Ltd.Investment Fund (LP)
Current assets 945498650.28 273102104.88
Non-current assets 220186531.13
Total assets 945498650.28 493288636.01
Current liabilities 730.00 258379870.36
Non-current liabilities 18381235.37
Total liabilities 730.00 276761105.73
Equity of non-controlling interests 9047500.16
Equity attributable to shareholders of
the Company as the parent 945497920.28 207480030.12
Net assets shares calculated at the 467638787.38 94278354.91
226Konka Group Co. Ltd. Interim Report 2022
shareholding proportion
Adjusted items
- Goodwill
- Internal unrealized profit
- Others
Carrying value of investment to
associated enterprises 467638787.38 94278354.91
Fair values of equity investments of
joint ventures with quoted prices
Revenue 227686845.28
Financial expenses -281006.45 2748106.23
Income tax expenses -1440602.70
Net profit -28114379.69 3684846.93
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -28114379.69 3684846.93
Dividends received from the joint
venture in the current period
(3) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Ending
Beginning balance/The
Item balance/Reporting
Same period of last year
Period
Associated enterprise:
Total carrying value of investment 5708256236.06 5340671797.22
The total of following items according
to the shareholding proportions
--Net profit 60936191.32 27682427.99
--Other comprehensive income -38929.34
--Total comprehensive income 60897261.98 27682427.99
IX. The Risk Related to Financial Instruments
The Company’s main financial instruments include borrowings accounts receivable accounts
payable trading financial assets and liabilities etc. Please refer to Note VI for detailed
descriptions of various financial instruments. Risks related to these financial instruments and risk
management policies the Company has adopted to reduce these risks are described as follows.
227Konka Group Co. Ltd. Interim Report 2022
The Company management manages and monitors the risk exposure in order to ensure the above
risks to be controlled in a limited scope.
1. Various Risk Management Objectives and Policies
The goals of the Company engaged in the risk management is to achieve the proper balance
between the risks and benefits reduced the negative impact to the Company operating
performance risk to a minimum maximized the profits of shareholders and other equity investors.Based on the risk management goal the basic strategy of the Company's risk management is
determine and analyze the various risks faced by the Company set up the bottom line of risk and
conducted appropriate risk management and timely supervised various risks in a reliable way and
controlled the risk within the range of limit.
(1) Market Risk
1) Foreign Exchange Risk
Foreign exchange risk refers to the risks that may lead to losses due to fluctuation in exchange
rate. The foreign exchange risk borne by the Company is related to USD. Except the procurement
and sales in USD of the Company's subsidiaries Hong Kong Konka Hongdin Trading Chain
Kingdom Memory Technologies Hongjet and Jiali the Company'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 at 30 June 2022 the Company'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 Ending balance Opening balance
Monetary Assets 77214921.83 104127945.47
Accounts Receivable 99275413.45 150964132.67
Other Receivables 114917428.94 97035927.80
Short-term borrowings 51764004.17 89678741.45
Accounts payable 26802690.35 35718564.93
Other payables 532849.98
Interest payable 28048.58 106816.56
The Company pays close attention to the impact of exchange rate changes on the Company's
foreign exchange risk and requires major companies in the Group that purchase and sell in
foreign currency to pay attention to the changes in foreign currency assets and liabilities manage
the group's foreign currency net asset exposure in a unified way implement single currency
settlement and reduce the scale of foreign currency assets and liabilities so as to reduce foreign
exchange risk exposure.
228Konka Group Co. Ltd. Interim Report 2022
2) Interest Rate Risk
The Company bears interest rate risk due to interest rate changes of interest-bearing financial
assets and liabilities. The Company's interest bearing financial assets are mainly bank deposits of
which the variable interest rate is mostly short-term while the interest bearing financial liabilities
are mainly bank loans and corporate bonds. The Company's long-term borrowings from banks
and corporation 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 borrowings from banks
with floating interest rates. The Company's policy is to maintain the floating interest rates of such
borrowings to eliminate the fair value risk of interest rate changes. As at 30 June 2022 the
balance of such short-term borrowings was RMB339068997.54.
(2) Credit Risk
As at 30 June 2022 the maximum credit risk exposure that may cause financial losses to the
Company mainly came from losses generated from the Company's financial assets due to failure
of the other party in a contract to perform its obligations and the financial guarantee undertaken
by the Company including:
The carrying amount of financial assets recognized in the consolidated balance sheet; for financial
instruments measured at fair value the book value reflects their risk exposure but not the
maximum risk exposure and the maximum risk exposure will change with the change of future
fair value.In order to reduce credit risk the Company has set up a group to determine the credit limit
conduct credit approval and implement other monitoring procedures to ensure that necessary
measures are taken to recover overdue claims. In addition the Company reviews the recovery of
each single receivable on each balance sheet date to ensure that sufficient bad debt provision is
made for the unrecoverable amount. Therefore the Company's management believes that the
Company's credit risk has been greatly reduced.The Company's working capital is deposited in banks with high credit rating so the credit risk of
working capital is low.The Company has adopted necessary policies to ensure that all customers have good credit
records. Except for the top five customers in terms of the amount of accounts receivable the
Company has no other major credit concentration risk. For the financial assets of the Company
that have been individually impaired please refer to 4. Accounts Receivable and 7. Other
Receivables in Note VI.
(3) Liquidity Risk
Liquidity risk refers to the risk that the Company is unable to fulfill its financial obligations on
the due date. The Company manages liquidity risk in the method of ensuring that there is
229Konka Group Co. Ltd. Interim Report 2022
sufficient liquidity to fulfill debt obligations without causing unacceptable loss or damage to the
Company’s reputation. In order to mitigate the liquidity risk the Management of the Company
has carried out a detailed inspection on the liquidity of the company including the maturity of
accounts payable and other payables bank credit line and bond financing. The conclusion is that
the Company has sufficient funds to meet the needs of the Group's short-term debts and capital
expenditure.The analysis of the financial assets and financial liabilities held by the Company based on the
maturity period of the undiscounted remaining contractual obligations is as follows:
230Konka Group Co. Ltd. Interim Report 2022
Amount as at 30 June 2022:
Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets
Monetary Assets 6534638395.86 6534638395.86
Trading Financial Assets
Notes Receivable 934842104.68 934842104.68
Accounts Receivable 2506800876.82 201993590.82 663374977.67 459386.20 3372628831.51
Other Receivables 866491967.46 469612386.01 469773586.67 4383863.74 1810261803.88
Long-term Receivables 10430400.00 10430400.00
Other Current Assets 3342866416.60 3342866416.60
Financial liabilities
Short-term borrowings 10090194886.59 10090194886.59
Notes payable 1133188165.45 1133188165.45
Accounts payable 2192583979.74 263468989.22 184516934.58 2856906.88 2643426810.42
Other payables 964345498.07 94909009.20 285321124.01 47569782.59 1392145413.87
Payroll payable 181829820.35 181829820.35
Non-current liabilities due 1071913219.84 1071913219.84
within one year
Long-term borrowings 7283243427.74 691764652.55 270437976.97 8245446057.26
Bonds Payable 1497340146.81 798238993.69 2295579140.50
Long-term payables 126886493.60 9514021.06 136400514.66
231Konka Group Co. Ltd. Interim Report 2022
2. Sensitivity analysis
The Company adopts sensitivity analysis technology to analyze the possible impact of reasonable
and possible changes of risk variables on current profits/losses or shareholders’ equity. As any
risk variable rarely changes in isolation and the correlation between variables will have a
significant effect on the final impact amount of the change of a risk variable the following
content is based on the assumption that the change of each variable is independent.
(1) Sensitivity analysis of foreign exchange risk
Assumption for the sensitivity of foreign exchange risk: All net investment hedging and cash flow
hedging of overseas operations are highly effective.On the basis of the above assumption under the condition that other variables remain unchanged
the impact of reasonable changes in the exchange rate on current profits/losses and equity after
tax is as follows:
30 June 2022
Exchange rate
Item Impact on shareholders'
fluctuations Impact on net profit
equity
Appreciation of 1%
USD 13340578.96 8723696.39
against RMB
Depreciation of 1%
USD -13340578.96 -8723696.39
against 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 the market 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:
30 June 2022
Interest rate
Item Impact on shareholders'
fluctuations Impact on net profit
equity
232Konka Group Co. Ltd. Interim Report 2022
Borrowings at
floating interest Up 0.5% -1311538.20 -1220696.86
rates
Borrowings at
floating interest Down 0.5% 1311538.20 1220696.86
rates
233Konka Group Co. Ltd. Interim Report 2022
X. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Ending fair value
Fair value Fair value Fair value
Item
measurement items at measurement items measurement items at Total
level 1 at level 2 level 3
I. Consistent fair value measurement
i. Trading Financial Assets
1. Financial assets measured at fair value through profit
and loss for the current period
(II) Accounts receivable financing 9926723.80 9926723.80
(II) Other equity investments
(III) Other equity instrument investment 23841337.16 23841337.16
(IV) Investment properties
(V) Biological assets
(V) Other non-current financial assets 2460095518.48 2460095518.48
The total amount of assets consistently measured at
9926723.802483936855.642493863579.44
fair value
Total amount of liabilities at fair value
II. Inconsistent fair value measurement
Total assets of inconsistent fair value measurement
Total liabilities of inconsistent fair value
234Konka Group Co. Ltd. Interim Report 2022
Ending fair value
Fair value Fair value Fair value
Item
measurement items at measurement items measurement items at Total
level 1 at level 2 level 3
measurement
235Konka Group Co. Ltd. Interim Report 2022
2. Basis for Determining the Market Prices of Consistent and Inconsistent Fair Value
Measurement Items at Level 1
Input value at Level 1 is the unadjusted quotation in the active market of the same assets or
liabilities that can be obtained on the measurement date.
3. Valuation Technique Adopted and Qualitative and Quantitative Information of Important
Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 2
The Level 2 fair value measurement of input value at Level 2 is the input value observable
directly or indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Valuation Technique Adopted and Qualitative and Quantitative Information of Important
Parameters for Consistent and Inconsistent Fair Value Measurement Items at Level 3
Input value at Level 3 is the input value unobservable of relevant assets or liabilities.XI. Related Party and Related-party Transaction
(I) Relationship of Related Party
1. Controlling Shareholder and the Ultimate Controller
(1) Controlling Shareholder and the Ultimate Controller
Sharehold Voting
Registr ing ratio right ratio
Registere
Name ation Nature of business to the to the
d capital
place Company Company
(%)(%)
OCT Group Shenzh Tourism real estate RMB12
29.99999729.999997
Co. Ltd. en electronics industry billion
Note: The ultimate controller of the Company is State-owned Assets Supervisor Commission of
the State Council.
(2) The Registered Capital of the Controlling Shareholder and its Changes
Controlling
Opening balance Increase Decrease Ending balance
shareholders
OCT Group Co. Ltd. 12000000000.00 12000000000.00
(3) Controlling Shareholders’ Shares or Equity and their Changes
Controlling Shareholding percentage
Shareholding amount
shareholders (%)
236Konka Group Co. Ltd. Interim Report 2022
Ending Opening
Ending balance Opening balance
percentage percentage
OCT Group Co. Ltd. 722383542.00 722383542.00 29.999997 29.999997
2. Subsidiary
Refer to note VIII-1. (1) Subsidiaries for the information of subsidiaries.
3. Associated Enterprises and Joint Ventures
Refer to Note VIII-2. (1) Significant Associated Enterprises for details of significant associated
enterprises of the Company. Information on other joint ventures or associated enterprises
occurring connected transactions with the Company in Reporting Period or forming balance due
to connected transactions made in previous period:
Name Relationship with the Company
Shenzhen Yaode Technology Co. Ltd. Associated enterprise
Anhui Kaikai Shijie E-commerce Co. Ltd. Associated enterprise
Shenzhen Kanghongxing Smart Technology Associated enterprise
Co. Ltd.Shenzhen Konda E-display Co. Ltd. Associated enterprise
Shenzhen Jielunte Technology Co. Ltd. Associated enterprise
Shenzhen Kaiyuan Shengshi Technology Co. Associated enterprise
Ltd.Puchuang Jiakang Technology Co Ltd. Associated enterprise
Shenzhen Kangying Semiconductor Associated enterprise
Technology Co. Ltd.Wiselite International (HK) Limited Associated enterprise
Feidi Technology (Shenzhen) Co. Ltd. Associated enterprise
Chuzhou Kangxin Health Industry Associated enterprise
Development Co. Ltd.Dongguan Guankang Hongyu Investment Co. Associated enterprise
Ltd.Yantai Kangyun Industrial Development Co. Associated enterprise
Ltd.Shandong Econ Technology Co. Ltd. Associated enterprise
Sichuan Chengrui Real Estate Co. Ltd. Associated enterprise
Dongguan Kangjia New Materials Technology Associated enterprise
Co. Ltd.Dongguan Kangzhihui Electronics Co. Ltd. Associated enterprise
Shenzhen Jielunte Technology Co. Ltd. Associated enterprise
237Konka Group Co. Ltd. Interim Report 2022
Name Relationship with the Company
Panxu Intelligence Co. Ltd. Associated enterprise
Sichuan Aimijiakang Technology Co. Ltd. Associated enterprise
Konka Industrial Development (Wuhan) Co. Associated enterprise
Ltd.Feidi Technology (Shenzhen) Co. Ltd. and its Associated enterprise
subsidiaries
E3info (Hainan) Technology Co. Ltd. Associated enterprise
Hefei KONSEMI Storage Technology Co. Associated enterprise
Ltd.Shandong Kangfei Intelligent Electrical Associated enterprise
Appliances Co. Ltd.Nantong Kangjian Technology Industrial Park Associated enterprise
Operations and Management Co. Ltd.Henan Kangfei Intelligent Electrical Associated enterprise
Appliances Co. Ltd.Shenzhen Kangying Semiconductor Associated enterprise
Technology Co. Ltd.
4. Information on Other Related Parties
Name Relationship with the Company
Chongqing Lanlv Moma Real Estate
Subsidiary of associated enterprise
Development Co. Ltd.Yantai Kangyue Investment Co. Ltd. Subsidiary of associated enterprise
HOHOELECTRICAL&FURNITURECO.LIM
ITED Minority shareholder of subsidiary
Chuzhou Hanshang Electric Appliance Co.Minority shareholder of subsidiary
Ltd.Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment
Minority shareholder of subsidiary
Co. Ltd.Huanjia Group Co. Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Dai Rongxing Close family members of minority shareholders
The company controlled by the ultimate
Jiangxi Meiji Enterprise Co. Ltd.controller of the minority shareholders of the
238Konka Group Co. Ltd. Interim Report 2022
Name Relationship with the Company
subsidiary
Chongqing Ruiyin Renewable Resources Co. The ultimate controller of the minority
Ltd. shareholders of the subsidiary
(II) Related-party Transactions
1. Related-party transactions of purchase and sale of goods provision and acceptance of services
(1) Purchasing goods/receiving services
Same period of
Related party Content Reporting Period
last year
Purchase of
Chongqing Ruiyin Renewable goods and 541543811.51 1503638982.86
Resources Co. Ltd. and its subsidiaries services
Chuzhou Hanshang Electric Appliance Purchase of
goods 181578952.60 207875193.30Co. Ltd.Purchase of
Puchuang Jiakang Technology Co Ltd. goods 150151893.73 163541409.57
Purchase of
OCT Group Co. Ltd. and its
goods and 25346178.36 23801411.18
subsidiaries and associates
services
Purchase of
Korea Electric Group Co. Ltd. and its
goods and 18805740.79 39114787.43
subsidiaries
services
Shenzhen Jielunte Technology Co.Purchase of
Ltd. and its subsidiaries as well as its goods 13992143.62 22652611.58
associated enterprises
Dongguan Kangzhihui Electronics Co. Purchase of
goods 13821902.86 15400576.70Ltd.HOHO ELECTRICAL & Purchase of
goods 9072974.63 13904763.96FURNITURE CO. LIMITED
Purchase of
Shenzhen Konda E-display Co. Ltd. goods and 8959207.84 26475410.20
services
Purchase of
Shenzhen Kangying Semiconductor
goods and 8145702.87
Technology Co. Ltd.services
239Konka Group Co. Ltd. Interim Report 2022
Same period of
Related party Content Reporting Period
last year
Purchase of
Dongguan Kangjia New Materials goods and 6976616.01
Technology Co. Ltd. services
Anhui Kaikai Shijie E-commerce Co. Purchase of
Ltd. and its subsidiaries goods
21234.507817518.74
Purchase of
Subtotal of other related parties goods and 2468604.98 738830.75
services
(2) Information of sales of goods and provision of labor service
Same Period of
Related party Content Reporting Period
last year
Sales of
OCT Group Co. Ltd. and its subsidiaries goods and 133512390.92 78699287.26
and associates render labor
service
Sales of
Korea Electric Group Co. Ltd. and its goods and
render labor 117013253.39 181904680.78subsidiaries
service
Sales of
Anhui Kaikai Shijie E-commerce Co. Ltd. goods and 86686831.47 86107536.96
and its subsidiaries render labor
service
Hefei KONSEMI Storage Technology Co. Sales of
goods 42085293.63Ltd.Sales of
Chuzhou Hanshang Electric Appliance Co. goods and 35546108.63 30402393.78
Ltd. render labor
service
Sales of
goods and
Sichuan Aimijiakang Technology Co. Ltd. 25833743.92
render labor
service
Sales of
Shandong Kangfei Intelligent Electrical goods and 21685823.71 33094053.38
Appliances Co. Ltd. render labor
service
240Konka Group Co. Ltd. Interim Report 2022
Same Period of
Related party Content Reporting Period
last year
HOHO ELECTRICAL & FURNITURE Sales of
goods 15922314.20 35832964.53CO. LIMITED
Sales of
goods and
Shenzhen Konda E-display Co. Ltd. render labor 14036782.18 23556672.37
service
Nantong Kangjian Technology Industrial Render labor 14150943.39
Park Operations and Management Co. Ltd. service
Shenzhen Jielunte Technology Co. Ltd. Sales of
goods and
and its subsidiaries as well as its associated render labor 13440177.22 23197082.93
enterprises service
Henan Kangfei Intelligent Electrical Sales of
goods 12773438.03 18874703.89Appliances Co. Ltd.Sales of
Dongguan Kangzhihui Electronics Co. goods and 12592625.44 11344197.37
Ltd. render labor
service
Sales of
Shenzhen Kangying Semiconductor goods and 8803735.07
Technology Co. Ltd. and its subsidiaries render labor
service
Sales of
E3info (Hainan) Technology Co. Ltd. and goods and 563757.57 5124776.56
its subsidiaries render labor
service
Subtotal of other related parties 6726787.89 6321489.21
2. Information on Related-party Lease
(1) Lease situation
The lease fee
The lease fee
confirmed in the
Leasee Lessee's name Category confirmed in the
same period of last
Reporting Period
year
OCT Group Co. Commercial
Konka Group Co.Ltd. And its residences 755425.60 683385.60
Ltd.subsidiaries and office
241Konka Group Co. Ltd. Interim Report 2022
The lease fee
The lease fee
confirmed in the
Leasee Lessee's name Category confirmed in the
same period of last
Reporting Period
year
buildings
Konka Ventures Commercial
OCT Group Co.Development residences
Ltd. And its 11610366.36 10456131.42
(Shenzhen) Co. and office
subsidiaries
Ltd. buildings
3. Information on Related-party Guarantee
(1) The Company was guarantor
Contracte
Actual
d
guarantee Cu Execution
guarantee
Secured party amount rre Start date End date accomplish
amount
(RMB100 ncy ed or not
(RMB100
00)
00)
Anhui 6000.00 5000.00 CN 2021-7-16 2022-7-16 Not
Tongchuang Y
Anhui 3000.00 3000.00 CN 2021-10-28 2022-10-27 Not
Tongchuang Y
Anhui 5000.00 CN 2022-4-14 2023-4-14 Not
Tongchuang Y
Anhui 3000.00 3000.00 CN 2022-6-2 2023-6-1 Not
Tongchuang Y
Electronics 7000.00 7729.95 CN 2021-10-18 2022-11-14 Not
Technology Y
Electronics 1500.00 CN 2022-4-12 2022-11-14 Not
Technology Y
Electronics 50000.00 50000.00 CN 2021-11-5 2022-7-16 Not
Technology Y
Sichuan Konka 4000.00 4000.00
CN 2022-3-22 2023-3-21 Not
Y
CN
Boluo Precision 2480.11 958.33 2020-8-19 2023-8-19 Not
Y
Boluo Precision 12449.00 2221.00
CN 2021-7-6 2023-7-5 Not
Y
242Konka Group Co. Ltd. Interim Report 2022
Contracte
Actual
d
guarantee Cu Execution
guarantee
Secured party amount rre Start date End date accomplish
amount
(RMB100 ncy ed or not
(RMB100
00)
00)
CN
Hong Kong Konka 11000.00 10402.67 2021-9-8 2021-11-6 Not
Y
CN
Hong Kong Konka 10000.00 9731.53 2022-2-9 2022-9-5 Not
Y
CN
Dongguan Konka 5000.00 5000.00 2022-3-18 2023-3-17 Not
Y
Dongguan Konka 80000.00 20167.98
CN 2021-6-23 2031-5-7 Not
Y
Telecommunicatio 7500.00 2610.57 CN 2022-5-20 2023-5-20 Not
n Technology Y
CN
Konka Circuit 20000.00 5426.60 2021-5-24 2024-11-30 Not
Y
Mobile 5000.00 4582.81 CN 2021-8-11 2022-8-11 Not
Interconnection Y
Konka Xinyun 6000.00 1000.00 CN 2022-5-26 2024-5-25 Not
Semiconductor Y
Konka Xinyun 20000.00 8277.66 CN 2021-7-12 2022-7-11 Not
Semiconductor Y
Liaoyang 2000.00 2000.00 CN 2021-12-23 2022-12-22 Not
Kangshun Smart Y
Liaoyang 5000.00 3000.00 CN 2022-1-19 2023-1-18 Not
Kangshun Smart Y
CN
Yibin Smart 980.00 980.00 2022-3-31 2023-3-30 Not
Y
XingDa HongYe 5800.00 5288.44
CN 2022-2-23 2024-2-23 Not
Y
CN
XingDa HongYe 2000.00 1081.17 2020-12-25 2023-12-25 Not
Y
CN
XingDa HongYe 750.00 443.24 2021-5-31 2023-8-31 Not
Y
Jiangxi Konka 10000.00 3000.00
CN 2020-11-6 2023-12-1 Not
Y
243Konka Group Co. Ltd. Interim Report 2022
Contracte
Actual
d
guarantee Cu Execution
guarantee
Secured party amount rre Start date End date accomplish
amount
(RMB100 ncy ed or not
(RMB100
00)
00)
CN
Jiangxi Konka 6000.00 2500.00 2022-6-26 2023-6-25 Not
Y
Jiangxi Konka 5500.00 456.80
CN 2019-6-26 2022-6-25 Not
Y
Jiangxi Konka 6500.00 1077.81
CN 2019-10-30 2022-10-30 Not
Y
Jiangxi Konka 990.00 990.00
CN 2022-3-10 2024-3-9 Not
Y
Jiangxi Konka 10000.00 5089.18
CN 2020-9-29 2023-9-29 Not
Y
5000.00 4600.00 CNJiangxi Konka 2020-12-21 2022-12-31 Not
Y
CN
Jiangxi Konka 1000.00 504.99 2020-12-30 2023-12-30 Not
Y
Xinfeng 5000.00 1742.17 CN 2020-5-19 2023-5-19 Not
Microcrystalline Y
Xinfeng 3478.85 662.37 CN 2020-5-29 2022-11-29 Not
Microcrystalline Y
Xinfeng 2100.00 1068.57 CN 2020-12-8 2023-12-8 Not
Microcrystalline Y
Xinfeng 7200.00 6000.00 CN 2021-12-27 2022-12-26 Not
Microcrystalline Y
Xinfeng 7200.00 6000.00 CN 2022-6-29 2023-6-28 Not
Microcrystalline Y
Jiangxi High
CN
Transparent 10000.00 830.39 2019-6-26 2022-6-26 Not
Y
Substrate
Jiangxi High
CN
Transparent 5000.00 1320.79 2020-1-8 2023-1-8 Not
Y
Substrate
Jiangxi High 5000.00 889.08 CN 2019-12-20 2022-12-20 Not
Transparent Y
244Konka Group Co. Ltd. Interim Report 2022
Contracte
Actual
d
guarantee Cu Execution
guarantee
Secured party amount rre Start date End date accomplish
amount
(RMB100 ncy ed or not
(RMB100
00)
00)
Substrate
Jiangxi High
990.00 990.00 CNTransparent 2022-3-10 2024-3-9 Not
Y
Substrate
Jiangxi High
CN
Transparent 5975.00 1054.60 2020-5-29 2022-11-29 Not
Y
Substrate
Jiangxi High
Transparent 6000.00 2450.09
CN 2020-7-14 2023-7-14 Not
Y
Substrate
Ningbo Kanghr
CN
Electrical 6000.00 2880.00 2020-10-15 2022-7-26 Not
Y
Appliance
Ningbo Kanghr
Electrical 6000.00 3000.00
CN 2021-7-12 2022-7-11 Not
Y
Appliance
Yibin Kangrun 10000.00 10000.00
CN 2020-11-13 2024-12-31 Not
Y
CN
Anhui Konka 20000.00 3000.00 2021-3-25 2022-3-25 Not
Y
Anhui Konka 5500.00 366.45
CN 2021-4-2 2022-4-2 Not
Y
Anhui Konka 12000.00 5000.00
CN 2021-4-25 2022-4-25 Not
Y
28000.00 7760.95 CNAnhui Konka 2021-8-10 2031-7-15 Not
Y
CN
Anhui Konka 7000.00 7000.00 2021-10-29 2026-10-26 Not
Y
Yibin OCT
Sanjiang 14000.00 7658.00 CN 2019-9-29 2022-9-28 Not
Properties Co. Y
Ltd.
245Konka Group Co. Ltd. Interim Report 2022
Contracte
Actual
d
guarantee Cu Execution
guarantee
Secured party amount rre Start date End date accomplish
amount
(RMB100 ncy ed or not
(RMB100
00)
00)
Econ Technology 1748.80 1748.80
CN 2022-5-19 2023-5-18 Not
Y
CN
Econ Technology 3747.44 3747.44 2022-5-17 2023-5-16 Not
Y
Econ Technology 4996.58 4996.58
CN 2022-5-18 2023-5-17 Not
Y
Econ Technology 249.83 249.83
CN 2022-6-28 2023-6-27 Not
Y
Anhui Electrical 13500.00 12500.00 CNY 2020-7-3 2023-7-1 NotAppliance
Shenzhen
Overseas Chinese 10000.00 580.00
CN 2022-5-31 2023-5-30 Not
Y
Town Co. Ltd.Foshan Zhujiang
Media Creative
Park Culture 980.00 300.47
CN 2022-5-17 2023-3-21 Not
Y
Development Co.Ltd.
(2) The Company was secured party
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0000) y d or not
CN
Electronics Technology 50000.00 2021-8-17 2022-8-16 Not
Y
OCT Group Co. Ltd. 70000.00
CN 2019-7-22 2022-7-22 Not
Y
CN
OCT Group Co. Ltd. 100000.00 2021-1-8 2024-1-8 Not
Y
CN
OCT Group Co. Ltd. 50000.00 2021-5-21 2024-5-21 Not
Y
OCT Group Co. Ltd. 80000.00 CN 2021-7-9 2024-7-9 Not
246Konka Group Co. Ltd. Interim Report 2022
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0000) y d or not
Y
OCT Group Co. Ltd. 100000.00
CN 2022-6-22 2024-6-21 Not
Y
CN
OCT Group Co. Ltd. 149500.00 2021-6-24 2024-6-23 Not
Y
Hu Zehong Liang Ruiling 2591.34 CN 2022-2-23 2024-2-23 Not
Dai Yaojin Y
Hu Zehong Liang Ruiling 529.77 CN 2020-12-25 2023-12-25 Not
Dai Yaojin Y
Hu Zehong Liang Ruiling 217.19 CN 2021-5-31 2023-8-31 Not
Dai Yaojin Y
1470.00 CNZhu Xinming 2020-11-6 2023-12-1 Not
Y
Jiangxi Xinzixin Real 1225.00 CN 2022-6-29 2023-6-28 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 223.83 CN 2019-6-26 2022-6-25 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 528.12 CN 2019-10-30 2022-10-30 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 485.10 CN 2022-3-10 2024-3-9 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 2493.70 CN 2020-9-29 2023-9-29 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 2254.00 CN 2020-12-21 2022-12-31 Not
Estate Co. Ltd. Y
CN
Zhu Xinming 247.44 2020-12-30 2023-12-30 Not
Y
Jiangxi Xinzixin Real 853.66 CN 2020-5-19 2023-5-19 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 324.56 CN 2020-5-29 2022-11-29 Not
Estate Co. Ltd. Y
Zhu Xinming 523.60
CN 2020-12-8 2023-12-8 Not
Y
CN
Zhu Xinming 2940.00 2021-12-27 2022-12-26 Not
Y
247Konka Group Co. Ltd. Interim Report 2022
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0000) y d or not
Jiangxi Xinzixin Real 2940.00 CN 2022-6-29 2023-6-28 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 406.89 CN 2019-6-26 2022-6-26 Not
Estate Co. Ltd. Y
CN
Zhu Xinming 647.19 2020-1-8 2023-1-8 Not
Y
CN
Zhu Xinming 435.65 2019-12-20 2022-12-20 Not
Y
Jiangxi Xinzixin Real 485.10 CN 2022-3-10 2024-3-9 Not
Estate Co. Ltd. Y
Jiangxi Xinzixin Real 516.75 CN 2020-5-29 2022-11-29 Not
Estate Co. Ltd. Y
Zhu Xinming 1200.54
CN 2020-7-14 2023-7-14 Not
Y
Econ Technology 3300.00
CN 2020-11-13 2024-12-31 Not
Y
Chuzhou State-owned
CN
Assets Management Co. 660.00 2021-3-25 2022-3-25 Not
Y
Ltd.Chuzhou State-owned
CN
Assets Management Co. 80.62 2021-4-2 2022-4-2 Not
Y
Ltd.Chuzhou State-owned
CN
Assets Management Co. 1100.00 2021-4-25 2022-4-25 Not
Y
Ltd.Chuzhou State-owned
Assets Management Co. 1707.41
CN 2021-8-10 2031-7-15 Not
Y
Ltd.Chuzhou State-owned
CN
Assets Management Co. 1540.00 2021-10-29 2026-10-26 Not
Y
Ltd.Hu Zehong Liang Ruiling 2450.00 CN 2018-7-1 2025-12-31 Not
Dai Yaojin Y
Hu Zehong Liang Ruiling 4899.02 CN 2018-7-1 2025-12-31 Not
Dai Yaojin Y
248Konka Group Co. Ltd. Interim Report 2022
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0000) y d or not
Suiyong Rongxin Asset 2450.00 CN 2018-1-1 2022-12-31 Not
Management Co. Ltd. Y
Suiyong Rongxin Asset 980.00 CN 2018-1-1 2022-12-31 Not
Management Co. Ltd. Y
Suiyong Rongxin Asset 1862.00 CN 2018-1-1 2022-12-31 Not
Management Co. Ltd. Y
Zhu Xinming 6223.00
CN 2021-10-15 2022-10-14 Not
Y
CN
Zhu Xinming 4900.00 2021-10-15 2022-10-14 Not
Y
Zhu Xinming 1323.00
CN 2021-10-15 2022-10-14 Not
Y
Zhu Xinming 443.45
CN 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 283.32 2022-1-5 2022-12-31 Not
Y
Zhu Xinming 235.95
CN 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 13249.19 2022-2-19 2023-2-18 Not
Y
CN
Zhu Xinming 6860.00 2022-3-1 2023-2-28 Not
Y
CN
Zhu Xinming 2330.54 2022-3-9 2023-3-8 Not
Y
CN
Zhu Xinming 44.05 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 443.45 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 278.55 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 231.91 2022-1-5 2022-12-31 Not
Y
1225.00 CNZhu Xinming 2022-6-1 2022-8-31 Not
Y
Zhu Xinming 44.05 CN 2022-1-5 2022-12-31 Not
249Konka Group Co. Ltd. Interim Report 2022
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0000) y d or not
Y
CN
Zhu Xinming 224.27 2022-1-5 2022-12-31 Not
Y
Zhu Xinming 214.50
CN 2022-1-5 2022-12-31 Not
Y
Zhu Xinming 262.79
CN 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 649.29 2022-1-5 2022-12-31 Not
Y
Zhu Xinming 298.90
CN 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 490.00 2022-1-5 2023-2-27 Not
Y
CN
Zhu Xinming 224.27 2022-1-5 2022-12-31 Not
Y
210.90 CNZhu Xinming 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 224.27 2022-1-5 2022-12-31 Not
Y
Zhu Xinming 260.25
CN 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 210.90 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 298.90 2022-1-5 2022-12-31 Not
Y
Zhu Xinming 224.27
CN 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 4.58 2022-1-5 2022-12-31 Not
Y
223.85 CNZhu Xinming 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 171.33 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 93.12 2022-1-5 2022-12-31 Not
Y
250Konka Group Co. Ltd. Interim Report 2022
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0000) y d or not
CN
Zhu Xinming 223.85 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 171.33 2022-1-5 2022-12-31 Not
Y
CN
Zhu Xinming 93.12 2022-1-5 2022-12-31 Not
Y
Zhu Xinming 1470.00
CN 2022-6-1 2022-8-31 Not
Y
Chuzhou Hanshang Electric 2450.00 CN 2022-5-19 2023-5-19 Not
Appliance Co. Ltd. Y
Chuzhou Hanshang Electric 2083.96 CN 2022-5-19 2023-5-19 Not
Appliance Co. Ltd. Y
Yuan Shengxiang Yudong
CN
Environmental Protection 6370.00 2020-8-19 2025-10-31 Not
Y
Technology Co. Ltd.Shenzhen Henglongtong
Technology Co. Ltd.Guizhou Huajinrun
Technology Co. Ltd.CN
Huaying Gaokede 488.37 2018-1-1 2021-12-31 Not
Y
Electronics Technology
Co. Ltd. Huaying
Gaokelong Electronics
Technology Co. Ltd.Shenzhen Henglongtong
Technology Co. Ltd.Guizhou Huajinrun
Technology Co. Ltd.CN
Huaying Gaokede 552.72 2018-1-1 2021-12-31 Not
Y
Electronics Technology
Co. Ltd. Huaying
Gaokelong Electronics
Technology Co. Ltd.Shenzhen Henglongtong 735.00 CN 2018-1-1 2021-12-31 Not
Technology Co. Ltd. Y
251Konka Group Co. Ltd. Interim Report 2022
Guarantee Cur Execution
Guarantor: amount renc Start date End date accomplishe
(RMB’0000) y d or not
Guizhou Huajinrun
Technology Co. Ltd.Huaying Gaokede
Electronics Technology
Co. Ltd. Huaying
Gaokelong Electronics
Technology Co. Ltd.Shenzhen Baili Yongxing
Technology Co. Ltd.Konka Ventures
CN
Development (Shenzhen) 1322.54 2021-12-16 2022-12-15 Not
Y
Co. Ltd.AUJET INDUSTRY 3316.81 US 2021-5-1 2023-12-31 Not
LIMITED D
AUJET INDUSTRY 1029.00 US 2020-9-1 2023-12-31 Not
LIMITED D
Guizhou Huajinrun
Technology Co. Ltd.Guizhou Jiaguida
US
Technology Co. Ltd. 879.80 2018-1-1 2021-12-31 Not
D
Guangan Ouqishi
Electronic Technology Co.Ltd.Shenzhen Unifortune
US
Supply Chain Management 1869.84 2021-6-21 2022-12-31 Not
D
Co. Ltd.Shenzhen Unifortune
Supply Chain Management 1112.30
US 2021-6-22 2022-12-31 Not
D
Co. Ltd.Wu Guoren and Xiao 6933.50 US 2019-12-31 2024-12-31 Not
Yongsong D
4. Borrowings of Funds
252Konka Group Co. Ltd. Interim Report 2022
Cur
Maturity
Name of related parties Amount ren Start date
date
cy
Borrowing:
CN
OCT Group Co. Ltd. 510910000.00 2021-10-9 2024-2-25
Y
CN
OCT Group Co. Ltd. 200000000.00 2021-11-16 2024-2-25
Y
OCT Group Co. Ltd. 1500000000.00
CN 2022-1-10 2024-2-25
Y
CN
OCT Group Co. Ltd. 500000000.00 2022-5-19 2024-2-25
Y
CN
OCT Group Co. Ltd. 700000000.00 2022-5-26 2024-2-25
Y
Chuzhou Hanshang Electric 105350000.00 CN 2022-2-1 2023-1-31
Appliance Co. Ltd. Y
Chuzhou Hanshang Electric 4900000.00 CN 2022-5-30 2023-5-29
Appliance Co. Ltd. Y
Konka Industrial Development 4500000.00 CN 2022-5-25 2023-5-24
(Wuhan) Co. Ltd. Y
Total 3525660000.00
Lending:
Chongqing Lanlv Moma Real Estate 188430000.00 CN 2020-11-25 2021-11-24
Development Co. Ltd. Y
Yantai Kangyue Investment Co. 128527000.00 CN 2021-12-16 2022-12-15
Ltd. Y
Chuzhou Kangxin Health Industry 152880000.00 CN 2021-12-18 2022-12-17
Development Co. Ltd. Y
Chuzhou Kangxin Health Industry 7350000.00 CN 2022-1-6 2023-1-4
Development Co. Ltd. Y
Chuzhou Kangxin Health Industry 167580000.00 CN 2022-3-26 2023-3-24
Development Co. Ltd. Y
Chuzhou Kangxin Health Industry 13592600.00 CN 2022-3-22 2023-3-20
Development Co. Ltd. Y
Chuzhou Kangjin Health Industrial 58800000.00 CN 2021-9-16 2022-9-15
Development Co. Ltd. Y
Chuzhou Kangjin Health Industrial 74436380.39 CN 2022-2-26 2022-8-31
Development Co. Ltd. Y
253Konka Group Co. Ltd. Interim Report 2022
Cur
Maturity
Name of related parties Amount ren Start date
date
cy
Yantai Kangyun Industrial 100200000.00 CN 2021-11-23 2022-11-22
Development Co. Ltd. Y
Yantai Kangyun Industrial 9490000.00 CN 2021-11-22 2022-8-24
Development Co. Ltd. Y
Yantai Kangyun Industrial 13940000.00 CN 2021-12-8 2022-8-24
Development Co. Ltd. Y
Yantai Kangyun Industrial 3230000.00 CN 2021-12-29 2022-8-24
Development Co. Ltd. Y
Yantai Kangyun Industrial 5640000.00 CN 2022-1-12 2022-8-24
Development Co. Ltd. Y
Yantai Kangyun Industrial 10200000.00 CN 2022-3-17 2023-1-19
Development Co. Ltd. Y
Yantai Kangyun Industrial 34000000.00 CN 2022-5-23 2022-12-30
Development Co. Ltd. Y
Yantai Kangyun Industrial 25000000.00 CN 2022-6-1 2022-12-30
Development Co. Ltd. Y
Dongguan Guankang Hongyu
Investment Co. Ltd.(Original 196000000.00 CN 2021-8-6 2022-8-5
name：Dongguan Konka Investment Y
Co. Ltd.)
Sichuan Chengrui Real Estate Co. 147245000.00 CN 2022-1-21 2022-12-7
Ltd. Y
Chongqing Liangshan Industrial 100000000.00 CN 2021-12-2 2022-11-28
Investment Co. Ltd. Y
Chongqing Liangshan Industrial 75247953.20 CN 2021-12-24 2022-12-23
Investment Co. Ltd. Y
Xi'an Huasheng Jiacheng Real Estate 20272400.00 CN 2022-1-5 2022-9-30
Co. Ltd. Y
Xi'an Huasheng Jiacheng Real Estate 200000.00 CN 2022-1-18 2022-9-30
Co. Ltd. Y
Xi'an Huasheng Jiacheng Real Estate 1640000.00 CN 2022-4-18 2022-9-30
Co. Ltd. Y
Xi'an Huasheng Jiacheng Real Estate 1051700000.00 CN 2022-5-17 2022-9-30
Co. Ltd. Y
Shandong Econ Technology Co. 50000000.00 CN 2022-3-22 2022-12-31
254Konka Group Co. Ltd. Interim Report 2022
Cur
Maturity
Name of related parties Amount ren Start date
date
cy
Ltd. Y
Shandong Econ Technology Co. 83191149.03 CN 2022-3-28 2022-12-31
Ltd. Y
Shandong Econ Technology Co. 49960000.00 CN 2022-3-30 2022-12-31
Ltd. Y
Total 2768752482.62
5. Information on Assets Transfer and Debt Restructuring by Related Party
Same period of
Name Content Reporting Period
last year
OCT Group and its Transfer of patents
subsidiaries and associates software copyrights
12843396.23
and trademarks
Total 12843396.23
5. Information on Remuneration for Key Management Personnel
Reporting Period Same period of last year
Item
(RMB’0000) (RMB’0000)
Total remuneration 737.41 1000.44
(III) Balances with Related Party
1. Accounts Receivable
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
Accounts
receivable:
OCT Group
Co. Ltd. and
its subsidiaries 236582796.81 5082435.61 112295325.56 2448228.43
and associates
Shenzhen
Yaode
Technology 137931418.85 68528250.38 131032162.46 65516081.23
Co. Ltd.
255Konka Group Co. Ltd. Interim Report 2022
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
HOHO
ELECTRICA
L &
FURNITURE 118073849.53 9374854.36 113606433.75 7481903.77
CO.LIMITED
Anhui Kaikai
Shijie E-
commerce Co. 95060834.88 5641125.48 148730451.88 8135088.28
Ltd. and its
subsidiaries
Shenzhen
Kanghongxing
Smart 39956322.21 14883305.61 39940213.90 6151331.52
Technology
Co. Ltd.Chuzhou
Hanshang
Electric 20187948.19 411834.14 45393066.82 926018.56
Appliance Co.Ltd.Shenzhen
Konda E- 11165355.20 227773.25 12099780.90 247013.76
display Co.Ltd.Korea Electric
Group Co.Ltd. and its 11324072.76 231011.08 7104826.83 144938.56
subsidiaries
Shenzhen
Jielunte
Technology
Co. Ltd. and 9497073.90 193740.31 22468132.66 458349.90
its subsidiaries
as well as its
associated
enterprises
Subtotal of
other related 21772079.57 480578.77 20262488.58 438909.17
parties
Total 701551751.90 105054908.99 652932883.34 91947863.18
Financing
accounts
receivable/not
es receivable:
Korea Electric
Group Co.Ltd. and its 51300000.00 15000000.00
subsidiaries
256Konka Group Co. Ltd. Interim Report 2022
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
Chuzhou
Hanshang
Electric 2000000.00 14000000.00
Appliance Co.Ltd.Shenzhen
Kaiyuan
Shengshi 5676044.81
Technology
Co. Ltd.Anhui Kaikai
Shijie E-
commerce Co. 92560.46 1815713.26
Ltd. and its
subsidiaries
Total 59068605.27 30815713.26
Other
receivables:
Chongqing
Liangshan
Industrial 179857668.24 3669096.43 223196349.34 4553205.53
Investment
Co. Ltd.Jiangxi Meiji
Enterprise Co. 93512640.31 52729155.43 93512640.31 52729155.43
Ltd.Dai Rongxing 81507850.71 81507850.71 79974500.96 52816781.04
Shenzhen
Kanghongxing
Smart 36522782.39 22998096.70 36670149.78 23809925.53
Technology
Co. Ltd.OCT Group
Co. Ltd. and
its subsidiaries 35009433.26 20189768.54 30429787.06 19968912.07
and associates
Huanjia Group
Co. Ltd. 25083675.53 17507082.35 25083675.53 17302185.43
HOHO
ELECTRICA
L &
FURNITURE 2354929.59 235963.94 2237153.78 224162.83
CO.LIMITED
Hu Zehong 2314963.85 47225.26
Subtotal of
other related 625877.36 11890.29 117002.15 46468.84
parties
257Konka Group Co. Ltd. Interim Report 2022
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
Total 456789821.24 198896129.65 491221258.91 171450796.70
Prepayments:
OCT Group
Co. Ltd. and 17939748.00
its subsidiaries
and associates
Puchuang
Jiakang
Technology 12349525.00
Co Ltd.Shenzhen
Kanghongxing
Smart 4298225.15 4298225.15
Technology
Co. Ltd.HOHO
ELECTRICA
L &
FURNITURE 2968378.45
CO.LIMITED
Shenzhen
Kangying
Semiconductor 2637436.84
Technology
Co. Ltd.Wiselite
International 1534918.13
(HK) Limited
Subtotal of
other related 616553.49 961888.99
parties
Total 40809866.93 6795032.27
Current
portion of
non-current
assets:
Feidi
Technology
(Shenzhen) 3283943.14 10395523.78
Co. Ltd. and
its subsidiaries
Total 3283943.14 10395523.78
Other current
assets:
258Konka Group Co. Ltd. Interim Report 2022
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
Xi'an
Huasheng
Jiacheng Real 1073812400.00
Estate Co.Ltd.Chuzhou
Kangxin
Health
Industry 352232224.99 339338066.67
Development
Co. Ltd.Chongqing
Lanlv Moma
Real Estate 212842153.29 205263079.97
Development
Co. Ltd.Dongguan
Guankang
Hongyu
Investment
Co. Ltd.(formerly 209746028.99 211662473.43
known as
Dongguan
Konka
Investment
Co. Ltd.)
Yantai
Kangyun
Industrial
Development 205395866.69 127164360.00
Co. Ltd. and
its subsidiaries
Shandong
Econ
Technology 183456400.95 427620131.62
Co. Ltd. and
its subsidiaries
Yantai
Kangyue 155032123.56 149862482.00
Investment
Co. Ltd.Sichuan
Chengrui Real 152513098.89
Estate Co.Ltd.OCT Group
Co. Ltd. and
its subsidiaries 135296201.13 163287310.66
and associates
259Konka Group Co. Ltd. Interim Report 2022
Ending balance Opening balance
Related party Carrying Bad debt Bad debt
Carrying balance
balance provision provision
Total 2680326498.49 1624197904.35
Long-term
receivables:
Feidi
Technology
(Shenzhen) 565099.14
Co. Ltd. and
its subsidiaries
Total 565099.14
2. Accounts Payable
Ending carrying Opening carrying
Related party
balance balance
Accounts payable:
Chuzhou Hanshang Electric Appliance Co. Ltd. 33265817.40 46950863.88
OCT Group Co. Ltd. and its subsidiaries and
associates 16728947.13 9087624.55
Shenzhen Jielunte Technology Co. Ltd. and its
subsidiaries as well as its associated enterprises 15933984.76 30500867.67
Korea Electric Group Co. Ltd. and its subsidiaries 10557590.91 9047641.17
Shenzhen Konda E-display Co. Ltd. 7125686.93 15522755.99
Dongguan Kangjia New Materials Technology Co. 5387512.62 2133853.64
Ltd.Anhui Kaikai Shijie E-commerce Co. Ltd. and its 4368888.21 4370387.10
subsidiaries
Chongqing Ruiyin Renewable Resources Co. Ltd. 4143953.82 10737902.34
and its subsidiaries
Dongguan Kangzhihui Electronics Co. Ltd. 3186815.31 6435302.72
Subtotal of other related parties 9665201.04 9864760.22
Total 110364398.13 144651959.28
Notes payable:
Puchuang Jiakang Technology Co Ltd. 12690179.40 22412418.23
Shenzhen Jielunte Technology Co. Ltd. and its
subsidiaries 11803197.61 8933479.14
Korea Electric Group Co. Ltd. and its subsidiaries 9642827.80 15984491.27
Panxu Intelligence Co. Ltd. and its subsidiaries 9436111.19 4782566.22
Dongguan Kangjia New Materials Technology Co. 6251201.46 6265841.17
Ltd.
260Konka Group Co. Ltd. Interim Report 2022
Ending carrying Opening carrying
Related party
balance balance
Chuzhou Hanshang Electric Appliance Co. Ltd. 5000000.00
Total 54823517.46 58378796.03
Contractual liabilities/other current liabilities:
OCT Group Co. Ltd. and its subsidiaries and 43369937.39 46611404.78
associates
Sichuan Aimijiakang Technology Co. Ltd. 6668541.05 6360494.53
Shenzhen Konda E-display Co. Ltd. 4165137.82
Subtotal of other related parties 1754465.28 1175786.84
Total 55958081.54 54147686.15
Other payables:
Chuzhou Hanshang Electric Appliance Co. Ltd. 138144081.59 130054989.90
Shandong Econ Technology Co. Ltd. and its 33477708.16 20241596.71
subsidiaries
Korea Electric Group Co. Ltd. and its subsidiaries 7563796.72 2340545.36
OCT Group Co. Ltd. and its subsidiaries and
associates 5637591.13 4008920.58
Shenzhen Kanghongxing Smart Technology Co.Ltd. 5348030.00 1354030.00
Konka Industrial Development (Wuhan) Co. Ltd. 4520876.71
Feidi Technology (Shenzhen) Co. Ltd. and its 2137895.10 6503608.50
subsidiaries
Dongguan Kangjia New Materials Technology Co. 209400.00 4923662.92
Ltd.E3info (Hainan) Technology Co. Ltd. and its 150383.08 50166438.36
subsidiaries
Guangdong Wanrun Tongheng Cultural & Tourism 120212000.00
Development Co. Ltd.Subtotal of other related parties 11178550.28 8616834.78
Total 208368312.77 348422627.11
XII. Contingency
(1) Before the Company acquired Jiangxi Konka New Material Jiangxi Konka New Material and
its subsidiaries Xinfeng Microcrystalline and Jiangxi High Transparent Substrate (formerly
known as Nano-Grystallized 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 New Material 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
261Konka Group Co. Ltd. Interim Report 2022
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 New Material Xinfeng Microcrystalline and Jiangxi High
Transparent Substrate to bear joint and several liability for such debts.On October 31 2019 Jiangxi Provincial Superior People’s Court 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-Grystallized Glass Xinfeng Microcrystalline should bear joint and several liability for all
debts recognized in this judgment. The defendants appealed against the first-instance judgment
and the Supreme People's Court accepted the appeal. On March 24 2021 the Supreme People's
Court of the People's Republic of China made the following ruling: I. Civil Judgment (2018)
G.M.CH. No. 110 made by Jiangxi Provincial Superior People's Court is abrogated; II. This case
is remanded to Jiangxi Provincial Superior People's Court for retrial. As of the date of issuance of
this report the case is still being tried in the first instance.The actual controller of Jiangxi Konka New Materials Zhu Xinming and his spouse Leng Sumin
as guarantors provided a total of about RMB 143 million of real estate mortgage guarantee to
Great Wall AMC for the above loans. Zhu Xinming and Leng Sumin also provided joint liability
guarantees. In order to avoid the adverse impact of this case on the Company the Company has
agreed in the acquisition agreement of Jiangxi Konka Xinfeng Microcrystalline and nanometer
microcrystalline that all contingent debts incurred by Jiangxi Konka by the original shareholders
of Konka new material in the form of joint and several liability. Jiangxi Xinzixin Real Estate Co.ltd. has held a total of about RMB 243 million of real estate assets as the case of the anti-
guarantee mortgage to Konka group and went through the mortgage registration procedures. As
of the date of this report the case is still on trial and the above commercial acceptance bill has not
been honored.
(2) As for the dispute of the Company with Luo Zaotong Luo Jingxia Luo Zongyin Luo
Zongwu 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 November 22 2021 the Company applied to Shenzhen Nanshan District
People's Court for property preservation. As at the date of issuance of this report no valid
judgment has been made for this case.
(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.
262Konka Group Co. Ltd. Interim Report 2022
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 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 at the date of issuance of this report property execution is ongoing.
(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 Wuhan Intermediate People's Court and the
Court order the defendant to pay Konka Group the bills and interest. As of the date of this report
the case is closed.
(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 January 24 2022
the Intermediate People's Court of Shenzhen Municipality Guangdong a public announcement
on serving Civil Ruling (2021) Y. 03 M.CH. No. 5253 and the notice on sealing distraining and
freezing of properties to the other party because some principals of the other party were missing.The Court ruled to seal distrain and freeze the properties of RMB155 million held by the
respondents 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. As of the date of issuance of this report the case is still under trial.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity the
Company as the plaintiff filed a lawsuit to 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 at the date of issuance of this
report the case is on the stage of execution.
(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.(defendant) over contracts is RMB380 million. As at the date of issuance of this report no valid
judgment has been made for this case.
263Konka Group Co. Ltd. Interim Report 2022
(8) The amount of the subject matter involved in the dispute between the Company's subsidiary
Konka Investment (plaintiff) and Elion Resources Group Co. Ltd. and Elion Ecological Co. Ltd.(defendant) over capital increase is RMB98 million. The court of arbitration issued an award on
27 January 2022. On 16 February 2022 the enforcement has been filed. On 20 July 2022 the
recoveries of RMB15 million were received. And at the date of issuance of this report this case is
in still in progress.
(9) 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. As of the date of issuance of this report no
effective judgment has been issued for this case.
(10) 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 (defendant) over sales and
purchase contracts is RMB90 million. In December 2020 the Company filed a lawsuit to the
court. As of the date of issuance of this report no effective judgment has been issued for this case.
(11) As the acceptor failed to pay the commercial bills held by the Company upon maturity the
Company as the plaintiff filed a lawsuit to 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. As at the date of issuance of this report the Court
has ordered the defendant to pay Konka Group the bills and corresponding interest and the case
is in execution.
(12) The amount of the subject matter involved in the dispute between the Company's subsidiary
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 September 1 2021 the
Intermediate People's Court of Xiamen Municipality Fujian ordered the defendants to pay the
plaintiff e-commercial acceptance bills of RMB50 million and the corresponding interest. As of
the date of issuance of this report the case is in the execution stage.
(13) 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. (defendant) over the right of recourse for bills is RMB50 million and the corresponding
interest. In September 2018 the Company filed a lawsuit with Shenzhen Intermediate People’s
264Konka Group Co. Ltd. Interim Report 2022
Court which 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 at the date of
issuance of this report the case is in execution and the Company has applied to the court for
adding shareholders of the person subject to enforcement as co-person subject to enforcement.
(14) 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 December 7 2021 Anhui Konka filed an arbitration
with the Shenzhen Court of International Arbitration. As at the date of issuance of this report no
valid judgment has been made for this case.
(15) 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. (defendant) over freight forwarding contracts in maritime and open sea
waters is RMB38 million. On April 26 2021 Anhui Konka applied to Shanghai Maritime Court
for compulsory execution. On June 7 2021 the Court accepted the case and numbered it {2021)
H. 72 ZH. No. 205. On 14 October 2021 Shanghai Maritime Court issued an executive order and
ended this execution. As at the date of issuance of this report the case is in the final stage of
execution.XIII. Commitment
1. Capital Commitments
Item Ending balance Beginning balance
Contract signed but hasn’t been
recognized in financial statements
-Commitment on construction and
purchase of long-lived assets
-Large amount contract 1477088701.23 954751938.62
-Foreign investment commitments
Total 1477088701.23 954751938.62
2. Other Commitments
As of 30 June 2022 there were no other significant commitments for the Company to disclose.XIV. Events after Balance Sheet Date
1. No significant non-adjusted events
2. Sales returns
265Konka Group Co. Ltd. Interim Report 2022
No such cases in the Reporting Period.
3. There were no other significant events after balance sheet date for the Company.
XV. Other Significant Events
The Company has no other significant events.XVI. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Listed by Withdrawal Methods for Bad Debts
Ending balance
Carrying balance Bad debt provision
With
draw
Category
Proport al Carrying value
Amount Amount
ion (%) propo
rtion
(%)
Accounts
receivable
of
expected
credit 961378586.17 14.96 659442459.30 68.59 301936126.87
losses
withdrawn
individuall
y
Accounts
receivable
of
expected
credit
losses
withdrawn
by
portfolio
Of which:
Aging 520881762.23 8.10 188182787.20 36.13 332698975.03
portfolio
266Konka Group Co. Ltd. Interim Report 2022
Ending balance
Carrying balance Bad debt provision
With
draw
Category
Proport al Carrying value
Amount Amount
ion (%) propo
rtion
(%)
Rel
ated party 4945431882.58 76.94 4945431882.58
group
Subtotal of
5466313644.8185.04188182787.203.445278130857.61
portfolios
Total 6427692230.98 100.00 847625246.50 13.19 5580066984.48
(Continued)
Opening balance
Carrying balance Bad debt provision
Withd
Category Propor rawal
Carrying value
Amount tion Amount propo
(%) rtion
(%)
Accounts
receivable
of
expected
credit 963517996.45 18.14 660600525.26 68.56 302917471.19
losses
withdrawn
individuall
y
Accounts
receivable
of
expected
credit
267Konka Group Co. Ltd. Interim Report 2022
Opening balance
Carrying balance Bad debt provision
Withd
Category Propor rawal
Carrying value
Amount tion Amount propo
(%) rtion
(%)
losses
withdrawn
by
portfolio
Of which:
Aging 666828622.16 12.56 181017964.57 27.15 485810657.59
portfolio
Rel
ated party 3679956748.33 69.30 3679956748.33
group
Subtotal of
4346785370.4981.86181017964.574.164165767405.92
portfolios
Total 5310303366.94 100.00 841618489.83 15.85 4468684877.11
(2) Provision for bad debts of accounts receivable provided individually
Ending balance
Withdra
Name Bad debt wal Withdrawal
Carrying balance
provision proporti reason
on (%)
Shanghai Huaxin
International 299136676.70 270016218.90 90.27 Debt default
Group Co. Ltd.Hongtu Sanbao
High-tech Agreement
200000000.0080000000.0040.00
Technology Co. reorganization
Ltd.Tewoo Group Co. Judicial
200000000.00100000000.0050.00
Ltd. reorganization
Zhongfu Tiangong Expected to be
71689096.6546662912.8265.09
Construction difficult to recover
268Konka Group Co. Ltd. Interim Report 2022
Ending balance
Withdra
Name Bad debt wal Withdrawal
Carrying balance
provision proporti reason
on (%)
Group Co. Ltd. in full
CCCC First
Expected to be
Harbor
55438105.00 48915975.00 88.24 difficult to recover
Engineering
in full
Company Ltd.China Energy Expected to be
Electric Fuel Co. 50000000.00 42500000.00 85.00 difficult to recover
Ltd. in full
Expected to be
Others 85114707.82 71347352.58 83.82 difficult to recover
in full
Total 961378586.17 659442459.30 68.59
1) Bad debt provision for accounts receivable made as per portfolio
1 Among Groups Withdrawal of Expected Credit Loss by Aging
Ending balance
Aging Bad debt Withdrawal
Carrying balance
provision proportion (%)
Within 1 year 312348662.67 6371912.64 2.04
1 to 2 years 19685880.67 1972525.26 10.02
2 to 3 years 1835208.46 416408.80 22.69
3 to 4 years 21611816.47 14021746.54 64.88
Over 4 years 165400193.96 165400193.96 100.00
Total 520881762.23 188182787.20 36.13
2 Among Groups Withdrawal of Expected Credit Loss by Adopting Other Method
Ending balance
Aging Bad debt Withdrawal
Carrying balance
provision proportion (%)
Related party group 4945431882.58
Total 4945431882.58
(3) Accounts Receivable Listed by Aging Portfolio
269Konka Group Co. Ltd. Interim Report 2022
Aging Ending balance
Within 1 year 4331772218.44
1 to 2 years 792569876.16
2 to 3 years 381345049.07
3 to 4 years 747219290.52
Over 4 years 174785796.79
Subtotal 6427692230.98
Less: bad debt provision 847625246.50
Total 5580066984.48
(4) Information of Bad Debt Provision in the Reporting Period
Changed amount
Category Beginning balance Collected or
Withdrawn
reversed
Bad debt provision of
841618489.836006756.67
accounts receivable
Total 841618489.83 6006756.67
(Continued)
Category Changed amount
Write-off or verified Other Ending balance
Bad debt provision
of accounts 847625246.50
receivable
Total 847625246.50
(5) No actual verified accounts receivable in the Reporting Period.
(6) Receivables with Top 5 Ending Balance Collected by Arrears Party
The total amount of receivables with top 5 ending balance collected by arrears party for the
Reporting Period was RMB4947822271.69 accounting for 76.98% of the total ending balance
of accounts receivable. The total ending balance of bad debt provision correspondingly
withdrawn was RMB270016218.91.
(7) There Was No Account Receivable Terminated the Recognition owning to the Transfer of the
Financial Assets.
(8) There Was No Asset and Liability Formed due to the Transfer of Accounts Receivable and
Continued Involvement in the Reporting Period.
2. Other Receivables
270Konka Group Co. Ltd. Interim Report 2022
Item Ending balance Beginning balance
Interest receivable 2907863.11 2002526.91
Dividends receivable 388722154.83 383943256.80
Other receivables 9859342231.28 10539120447.82
Total 10250972249.22 10925066231.53
2.1 Interest Receivable
(1) Category of Interests Receivable
Item Ending balance Beginning balance
Term deposits 2907863.11 2002526.91
Total 2907863.11 2002526.91
2.2 Dividends Receivable
(1) Category of Dividends Receivable
Investee Ending balance Opening balance
Hong Kong Konka Limited 108722154.83 103943256.80
Suining Konka Industrial Park 280000000.00 280000000.00
Development Co. Ltd.Total 388722154.83 383943256.80
2.3 Other Receivables
(1) Classified by Account Nature
Nature Ending carrying balance Opening carrying balance
Intercourse funds among
10906646965.4011464671000.88
subsidiaries
Energy-saving subsidies receivable 141549150.00 141549150.00
Intercourse funds with other related
54312816.7350667315.53
parties
Deposit and margin 11983388.91 10533532.11
Others 143193401.14 253002153.59
Total 11257685722.18 11920423152.11
(2) Withdrawal of Bad Debt Provision for Other Receivables
Bad debt Stage 1 Stage 2 Stage 3 Total
provision
271Konka Group Co. Ltd. Interim Report 2022
Expected loss
Expected Expected credit
in the duration
credit loss of losses for the entire
(credit
the next 12 duration (with
impairment not
months credit impairment)
occurred)
Balance as at
1 January 2036471.61 54584345.62 1324681887.06 1381302704.29
2022
In the
Reporting
Period
Carrying
amount of -37962.09 37962.09
other
receivables
on 1 January
2022
- Transferred
to the Phase -37962.09 37962.09
II
- Transferred
to the Phase
III
- Transferred
back to the
Phase II
- Transferred
back to the
Phase I
Withdrawal -904284.12 964524.72 16980546.01 17040786.61
Recovery
Write-off
Verification
Other
changes
Balance on
30 June 1094225.40 55586832.43 1341662433.07 1398343490.90
2022
272Konka Group Co. Ltd. Interim Report 2022
(3) Withdrawing bad debt provision for other receivables according to group
Ending balance
Carrying amount Bad debt provision
With
Categor draw
Propo
y al Carrying value
Amount rtion Amount
prop
(%)
ortio
n (%)
Other
receivab
les of
expected
credit 1928623498.02 17.13 1341662433.07 69.57 586961064.95
losses
withdra
wn
individu
ally
Other
receivab
les of
bad debt
provisio
n
withdra
wn by
credit
risk
characte
ristic
portfolio
:
Aging 139585436.26 1.24 51785550.23 37.10 87799886.03
portfolio
Low-
risk 18460535.94 0.16 4895507.60 26.52 13565028.34
portfolio
273Konka Group Co. Ltd. Interim Report 2022
Ending balance
Carrying amount Bad debt provision
With
Categor draw
Propo
y al Carrying value
Amount rtion Amount
prop
(%)
ortio
n (%)
Related
party 9171016251.96 81.46 9171016251.96
group
Subtotal
of 9329062224.16 82.87 56681057.83 0.61 9272381166.33
portfolio
s
Total 11257685722.18 100.00 1398343490.90 12.42 9859342231.28
(Continued)
Beginning balance
Carrying balance Bad debt provision
Withd
Catego
Propo rawal
ry Carrying value
Amount rtion Amount propo
(%) rtion
(%)
Other
receiva
bles of
expecte
d credit 1917144244.04 16.08 1324681887.06 69.10 592462356.98
losses
withdra
wn
individu
ally
Other
receiva
bles of
274Konka Group Co. Ltd. Interim Report 2022
Beginning balance
Carrying balance Bad debt provision
Withd
Catego
Propo rawal
ry Carrying value
Amount rtion Amount propo
(%) rtion
(%)
bad
debt
provisio
n
withdra
wn by
credit
risk
characte
ristic
portfoli
o:
Agin
g 188615848.46 1.58 52782559.62 27.98 135833288.84
portfoli
o
Low-
risk 17318036.76 0.15 3838257.61 22.16 13479779.15
portfoli
o
Relat
ed party 9797345022.85 82.19 9797345022.85
group
Subtotal
of 10003278908.07 83.92 56620817.23 0.57 9946658090.84
portfoli
os
Total 11920423152.11 100.00 1381302704.29 11.59 10539120447.82
(4) Other Receivables Listed by Aging
Aging Ending balance
275Konka Group Co. Ltd. Interim Report 2022
Aging Ending balance
Within 1 year 5107628848.08
1 to 2 years 4077800371.98
2 to 3 years 325840422.22
3 to 4 years 1387777872.27
4 to 5 years 68404107.69
Over 5 years 290234099.94
Subtotal 11257685722.18
Less: bad debt provision 1398343490.90
Total 9859342231.28
(5) Bad Debt Provision for Other Receivables
The amount of bad debt provision for the Reporting Period was RMB17040786.61 and other
receivables actually written off in this period were RMB0.00.
(6) Other Receivables Actually Written off for the Reporting Period
There were no other receivables actually written off for the Reporting Period.
(7) Other Receivables with Top 5 Ending Balances Collected by Arrears Party
The total amount of other receivables with top 5 ending balance collected by arrears party this
year was RMB7721891966.19 accounting for 68.59% of the total ending balance of other
receivables. The total ending balance of bad debt provision correspondingly withdrawn was
RMB1154255128.49.
(8) There were no other receivables derecognized due to the transfer of financial assets for the
Reporting Period.
(9) There were no assets or liabilities formed due to the transfer and the continued involvement of
other receivables for the Reporting Period.
276Konka Group Co. Ltd. Interim Report 2022
3. Long-term Equity Investment
(1) Category of Long-term Equity Investment
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment
to 6823951033.98 431911933.01 6392039100.97 6697991519.67 442644418.70 6255347100.97
subsidiaries
Investment
to associates 2771232922.34 238255149.48 2532977772.86 2618520670.18 240725547.51 2377795122.67
and joint
ventures
Total 9595183956.32 670167082.49 8925016873.83 9316512189.85 683369966.21 8633142223.64
(2) Investment to Subsidiaries
Provision for Ending balance
Investee Beginning balance Increase Decrease Ending balance impairment this of depreciation
period reserve
Konka Ventures 2550000.00 2550000.00
Anhui Konka 122780937.98 122780937.98
Konka Factoring 300000000.00 300000000.00
Konka Unifortune 15300000.00 15300000.00
Wankaida 10000000.00 10000000.00
277Konka Group Co. Ltd. Interim Report 2022
Provision for Ending balance
Investee Beginning balance Increase Decrease Ending balance impairment this of depreciation
period reserve
Dongguan Konka 274783988.91 274783988.91
Konka Europe 3637470.00 3637470.00
Telecommunication 360000000.00 360000000.00
Technology
Mobile 100000000.00 100000000.00
Interconnection
Anhui Tongchuang 779702612.22 779702612.22
Kangjiatong 29349800.00 1400000.00 30749800.00
Pengrun 25500000.00 25500000.00
Technology
Beijing Konka 200000000.00 200000000.00
Electronic
Konka Circuit 287650000.00 287650000.00
Hong Kong Konka 781828.61 781828.61
Konka Investment 500000000.00 500000000.00
Electronics 1000000000.00 1000000000.00
Technology
Konka Huanjia 91800000.00
Shanghai Konka 40000000.00 40000000.00
Jiangxi Konka 349568066.99 349568066.99 340111933.01
278Konka Group Co. Ltd. Interim Report 2022
Provision for Ending balance
Investee Beginning balance Increase Decrease Ending balance impairment this of depreciation
period reserve
Shenzhen Nianhua 30000000.00 30000000.00
Shenzhen 100000000.00 100000000.00
KONSEMI
Konka Eco- 50000.00 50000.00
Development
Suining Konka 200000000.00 200000000.00
Industrial Park
Konka Ronghe 5100000.00 5100000.00
Suining Electronic
Technological 200000000.00 200000000.00
Innovation
Shenzhen
Chuangzhi 10000000.00 10000000.00
Electrical
Appliances
Kanghong (Yantai)
Environmental 1025100.00 1025100.00
Protection
Chongqing 25500000.00 25500000.00
Kangxingrui
279Konka Group Co. Ltd. Interim Report 2022
Provision for Ending balance
Investee Beginning balance Increase Decrease Ending balance impairment this of depreciation
period reserve
Chongqing
Optoelectronic 933333333.33 933333333.33
Technology
Research Institute
Kowin Memory 92520000.00 92520000.00
(Shenzhen)
Jiangkang
(Shanghai) 90000000.00 90000000.00
Technology
Ningbo Kanghr 510.00 510.00
Electrical Appliance
Konka Intelligent 10000000.00 10000000.00
Manufacturing
Yibin Kangrun 67000000.00 67000000.00
Konka Material 9205452.93 9205452.93
Industrial and Trade 50000000.00 50000000.00
Technology
Konka Huazhong 30000000.00 30000000.00
Sichuan Chengrui 8000.00 19992000.00 20000000.00
Guizhou Kanggui 70000000.00 70000000.00
280Konka Group Co. Ltd. Interim Report 2022
Provision for Ending balance
Investee Beginning balance Increase Decrease Ending balance impairment this of depreciation
period reserve
Material
Technology
Nantong Kanghai 15300000.00 15300000.00
Jiangxi Konka 50000000.00 50000000.00
High-tech Park
Shangrao Konka
Electronic
Technology
Innovation
Zhejiang Konka
Electronic
Zhejiang Konka
Technology
Industry
Total 6255347100.97 156692000.00 20000000.00 6392039100.97 431911933.01
(3) Investment to Joint Ventures and Associated Enterprises
Investee Closing Balance of Increase/decrease
Last Period
281Konka Group Co. Ltd. Interim Report 2022
Adjustment of
Gains and losses
Additional Investment other
recognized under the
investment reduced comprehensive
equity method
income
Anhui Kaikai Shijie E-commerce Co. Ltd. 17400738.44
Kunshan Kangsheng Investment
222683160.16-4747257.35
Development Co. Ltd.Chutian Dragon Co. Ltd. 647490626.94 82158766.96 13641260.41
Helongjiang Longkang Zhijia Technology
1157647.821157647.82
Co. Ltd.Shaanxi Silk Road Cloud Intelligent Tech
14113227.58183461.77
Co. Ltd.Shenzhen Kanghongxing Intelligent
Technology Co. Ltd.Shenzhen Zhongbin Konka Technology
Co. Ltd.Shenzhen Kangjia Jiapin Intelligent
3921788.17725889.93
Electrical Apparatus Technology Co. Ltd.Shenzhen Bosser New Materials Co. Ltd. 60453041.58 1324755.44
Shenzhen Yaode Technology Co. Ltd.Wuhan Tianyuan Environmental
325645840.9111179621.33
Protection Co. Ltd.Shenzhen KONKA E-display Co. Ltd. 13097210.11 -1564990.77
282Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Adjustment of
Closing Balance of Gains and losses
Investee Last Period Additional Investment otherrecognized under the
investment reduced comprehensive
equity method
income
Chuzhou Konka Technology Industry
5899324.39-1305129.50
Development Co. Ltd.Chuzhou Kangjin Health Industrial
15251484.0124500000.00
Development Co. Ltd.Nantong Kangjian Technology Industrial
Park Operations and Management Co. 14610460.04 -588275.99
Ltd.Shenzhen Kangyue Enterprise Co. Ltd. 3102893.60 -70623.90
Dongguan Guankang Yuhong Investment
17762197.93-12145407.83
Co. Ltd.Chongqing Yuanlv Benpao Real Estate
-261753.11261753.11
Co. Ltd.Chuzhou Kangxin Health Industry
12801830.75-1370767.86
Development Co. Ltd.E3info (Hainan) Technology Co. Ltd. 36574609.73
Shenzhen Kangpeng Digital Technology
5702518.20-1164839.41
Co. Ltd.Yantai Kangyun Industrial Development 8536245.03 -2011566.36
283Konka Group Co. Ltd. Interim Report 2022
Increase/decrease
Adjustment of
Closing Balance of Gains and losses
Investee Last Period Additional Investment otherrecognized under the
investment reduced comprehensive
equity method
income
Co. Ltd.Shandong Econ Technology Co. Ltd. 823028634.77 59671172.50
Dongguan Kangjia New Materials
3919896.55-451280.15
Technology Co. Ltd.Shenzhen E2info Network Technology
124903499.0717622654.08
Co. Ltd.Sichuan Chengrui Real Estate Co. Ltd. 12250023.10 -2702345.77
Total 2377795122.67 36750023.10 83316414.78 76488083.68
(Continued)
Increase/decrease Ending balance
Cash bonus or
Withdrawal of Ending balance of
Investee Other equity profits
impairment Others (Carrying value) depreciation reserve
changes announced to
provision
issue
Anhui Kaikai Shijie E-commerce Co. Ltd. 17400738.44
Kunshan Kangsheng Investment
217935902.81
Development Co. Ltd.Chutian Dragon Co. Ltd. -2854608.30 4410993.60 571707518.49
284Konka Group Co. Ltd. Interim Report 2022
Increase/decrease Ending balance
Cash bonus or
Withdrawal of Ending balance of
Investee Other equity profits
impairment Others (Carrying value) depreciation reserve
changes announced to
provision
issue
Helongjiang Longkang Zhijia Technology
Co. Ltd.Shaanxi Silk Road Cloud Intelligent Tech
14296689.35
Co. Ltd.Shenzhen Kanghongxing Intelligent
5158909.06
Technology Co. Ltd.Shenzhen Zhongbin Konka Technology Co.Ltd.Shenzhen Kangjia Jiapin Intelligent
4647678.10
Electrical Apparatus Technology Co. Ltd.Shenzhen Bosser New Materials Co. Ltd. 61777797.02 18536771.07
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental Protection
2770200.00334055262.24
Co. Ltd.Shenzhen KONKA E-display Co. Ltd. 11532219.34
Chuzhou Konka Technology Industry
4594194.89
Development Co. Ltd.Chuzhou Kangjin Health Industrial 39751484.01
285Konka Group Co. Ltd. Interim Report 2022
Increase/decrease Ending balance
Cash bonus or
Withdrawal of Ending balance of
Investee Other equity profits
impairment Others (Carrying value) depreciation reserve
changes announced to
provision
issue
Development Co. Ltd.Nantong Kangjian Technology Industrial
14022184.05
Park Operations and Management Co. Ltd.Shenzhen Kangyue Enterprise Co. Ltd. 3032269.70
Dongguan Guankang Yuhong Investment
5616790.10
Co. Ltd.Chongqing Yuanlv Benpao Real Estate Co.Ltd.Chuzhou Kangxin Health Industry
11431062.89
Development Co. Ltd.E3info (Hainan) Technology Co. Ltd. 36574609.73
Shenzhen Kangpeng Digital Technology
4537678.79
Co. Ltd.Yantai Kangyun Industrial Development
6524678.67
Co. Ltd.Shandong Econ Technology Co. Ltd. 135296760.09 1017996567.36
Dongguan Kangjia New Materials
3468616.40
Technology Co. Ltd..
286Konka Group Co. Ltd. Interim Report 2022
Increase/decrease Ending balance
Cash bonus or
Withdrawal of Ending balance of
Investee Other equity profits
impairment Others (Carrying value) depreciation reserve
changes announced to
provision
issue
Shenzhen E2info Network Technology Co.
142526153.15
Ltd.Sichuan Chengrui Real Estate Co. Ltd. 9547677.33
Total 132442151.79 7181193.60 2532977772.86 238255149.48
287Konka Group Co. Ltd. Interim Report 2022
4. Operating Revenue and Cost of Sales
(1) Operating Revenue and Cost of Sales
Reporting Period Same Period of last year
Item
Revenue Cost Revenue Cost
Main
operati 795988114.95 904792276.47 1049267610.79 1005212983.03
ons
Other
operati 141186691.51 50784505.04 152113795.91 74048575.31
ons
Total 937174806.46 955576781.51 1201381406.70 1079261558.34
5. Investment Income
Same Period of
Item Reporting Period
last year
Long-term equity investment income
accounted by equity method 76488083.68 6396453.37
Investment income from disposal of long-term
equity investment 152614987.18 167692365.06
Investment income from disposal of financial
assets at fair value through profit or loss 21845500.00
Interest income from holding of debt obligation
investments 2010000.00 860000.00
Total 231113070.86 196794318.43
XVII. Approval of Financial Statements
The financial statement was approved on 23 August 2022 by the Board of Directors.
288Konka Group Co. Ltd. Interim Report 2022
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Item Amount Note
Gains/losses from the disposal of non-current assets 657751392.73
Tax rebates reductions or exemptions due to approval
beyond authority or the lack of official approval
documents
Government grants recognized in the current period
except for those acquired in the ordinary course of 335987367.04
business or granted at certain quotas or amounts
according to the government’s unified standards
Dispossession surcharge to non-financial institutions
included in the current profit and loss
Profits arising from business combination when the
combined cost is less than the recognized fair value of
net assets of the mergered company
Gain/Loss on non-monetary asset swap
Gain/Loss on entrusting others with investments or
asset management
Asset impairment provisions due to acts of God such as
natural disasters
Gain/Loss from debt restructuring
Expenses on business reorganization such as expenses
on staff arrangements integration etc.Gain/Loss on the part over the fair value due to
transactions with distinctly unfair prices
Current net profit or loss of subsidiaries acquired in
business combination under the same control from
period-beginning to combination date
Gains and losses arising from contingencies unrelated
to the normal operation of the company's business
Gain/loss from change of fair value of trading financial
assets and liabilities and derivative financial assets and
liabilities and investment gains from disposal of
trading financial assets and liabilities and derivative 32966971.77
financial assets and liabilities and investment in other
obligatory rights other than valid hedging related to
the Company’s common businesses
Reversal of provision for impairment test of
receivables and contract assets impairment
Gain/loss on entrustment loans 54416927.25
289Konka Group Co. Ltd. Interim Report 2022
Item Amount Note
Gain/loss on change in fair value of investment
property of which the follow-up measurement is
carried out adopting fair value method
Effect on current profit or loss when a one-off
adjustment is made to current profit or loss according
to requirements of taxation accounting and other
relevant laws and regulations
Custodian fees earned from entrusted operation
Other non-operating income and expense other than the
26896814.20
above
Other profit and loss items in line with the definition of
non-recurring gains and losses
Subtotal 1108019472.99
Less: Income tax effects 135264660.61
Minority shareholders' equity impact (after tax) 57580191.84
Total 915174620.54
(1) The explanation of the Company to “Project confirmed with the definition of non-recurring gainsand losses” and define non-recurring gains and losses as recurring gains and losses according to the
nature and features of normal business operations of it.Item Amount Reason
Government subsidies which are closely related to the
Software tax
7949955.87 normal business of the company and which are in
refund accordance with national policies and certain standard
quota or quantitative amount
Total 7949955.87
2. Return on Equity and Earnings Per Share
Weighted average EPS (Yuan/share)
Profit in Reporting Period
ROE (%) EPS-basic EPS-diluted
Net profit attributable to ordinary
shareholders of the Company as the 1.87% 0.0718 0.0718
Parent
Net profit attributable to ordinary
shareholders of the Company as the -8.03% -0.3083 -0.3083
Parent before exceptional gains and
290Konka Group Co. Ltd. Interim Report 2022
Weighted average EPS (Yuan/share)
Profit in Reporting Period
ROE (%) EPS-basic EPS-diluted
losses
3. 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
（2）Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
The Board of Directors
Konka Group Co. Ltd.
24 August 2022
291
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