Konka Group Co. Ltd. Third Quarterly Report 2022

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2022-83

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

133040 149987 21 Konka 03 22 Konka 01

133306 133333 22 Konka 03 22 Konka 05

KONKA GROUP CO. LTD.THIRD QUARTERLY REPORT 2022

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

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

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

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

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

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

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

contents.

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

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

carried in this Report are factual accurate and complete.

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

independent auditor.□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

YoY change

Q3 2022 Q1-Q3 2022 YoY change (%)

(%)

Operating revenue (RMB) 7700546365.26 -21.56% 24596016642.07 -22.23%

Net profit attributable to the listed

-37227714.3182.43%135590724.52207.29%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -335657322.29 2.39% -1078013504.00 -2.28%

exceptional gains and losses (RMB)

Net cash generated from/used in

————-67596351.1895.31%

operating activities (RMB)

Basic earnings per share (RMB/share) -0.0155 82.39% 0.0563 207.24%

1Konka Group Co. Ltd. Third Quarterly Report 2022

Diluted earnings per share (RMB/share) -0.0155 82.39% 0.0563 207.24%

Weighted average return on equity (%) -0.41% 2.13% 1.48% 2.99%

30 September 2022 31 December 2021 Change (%)

Total assets (RMB) 39223352281.70 39874520771.26 -1.63%

Equity attributable to the listed

9251296321.259095278436.411.72%

company’s shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q3 2022 Q1-Q3 2022 Note

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

65201958.69722953351.42

allowance write-offs)

Government grants through profit or loss (exclusive of government grants

continuously given in the Company’s ordinary course of business at fixed 237051376.50 573038743.54

quotas or amounts as per the government’s policies and standards)

Gain or loss on fair-value changes on held-for-trading financial assets and

liabilities & income from disposal of held-for-trading financial assets and

14429370.0347396341.80

liabilities and available-for-sale financial assets (exclusive of the effective

portion of hedges that arise in the Company’s ordinary course of business)

Reversed portions of impairment allowances for receivables which are

32575571.5832575571.58

tested individually for impairment

Gain or loss on loan entrustments 41371824.79 95788752.04

Non-operating income and expense other than the above 65105727.71 92002541.91

Less: Income tax effects 97012481.90 232277142.51

Non-controlling interests effects (net of tax) 60293739.42 117873931.26

Total 298429607.98 1213604228.52 --

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

□ Applicable √ Not applicable

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

the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their

Securities to the Public—Exceptional Gain/Loss Items:

√ Applicable □ Not applicable

Item Amount (RMB) Reason

Government grants continuously given in the Company’s ordinary

Tax rebates on software 11853122.32 course of business at fixed quotas or amounts as per the

government’s policies and standards

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

√ Applicable □ Not applicable

Unit: RMB

Percentage

Item 30 September 2022 1 January 2022 Main reason for change

of change

Recovery of notes receivable in the Reporting

Notes receivable 1227793096.11 1777477481.28 -30.92%

Period

Decreased prepayments to suppliers and partners

Prepayments 373941807.92 631400953.86 -40.78%

in the Reporting Period

Increased constructions in progress in relation to

Construction in progress 2086668242.52 1490777831.39 39.97%

industrial parks in the Reporting Period

Decreased prepayments for land in the Reporting

Other non-current assets 1695607267.24 2648530490.12 -35.98%

Period

Pay the previous large amount of accounts

Accounts payable 2529930427.85 3784315091.41 -33.15%

payable to suppliers during the current period

Current portion of non- Redemption of bonds payable that became

670292800.685089586269.32-86.83%

current liabilities mature in the Reporting Period

2Konka Group Co. Ltd. Third Quarterly Report 2022

Long-term borrowings 8366033001.46 3529140539.09 137.06% New borrowings in the Reporting Period

Bonds payable 4090653826.03 2293698899.30 78.34% Issuance of bonds in the Reporting Period

Percentage

Item Q1-Q3 2022 Q1-Q3 2021 Main reason for change

of change

Decreased interest expense and exchange rate

Finance costs 262346112.20 675851664.46 -61.18%

fluctuations in the Reporting Period

Interest income 190309274.96 123952533.58 53.53% Increased interest income from entrustment loans

Income from equity disposal in the Reporting

Return on investment 836530565.91 467513252.27 78.93%

Period

II Shareholder Information

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

Rights as well as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders 86733 Number of preference shareholders with resumed voting rights (if any) 0

Top 10 shareholders

Sharehol Shares in pledge

ding Total shares Restricted marked or frozen

Name of shareholder Nature of shareholder

percentag held shares held

Status Shares

e

OVERSEAS CHINESE TOWN State-owned legal

21.75%5237469320

HOLDINGS COMPANY person

CITIC SECURITIES BROKERAGE

Foreign legal person 7.48% 180001110 0

(HONG KONG) CO. LTD.Domestic natural

WANG JINGFENG 4.63% 111411100 0

person

GUOYUAN SECURITIES BROKER

Foreign legal person 2.46% 59227225 0

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

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

NAM NGAI Foreign natural person 0.96% 23000000 0

CHINA MERCHANTS SECURITIES State-owned legal

0.81%194577200

(HK) LIMITED person

BOCOM INTERNATIONAL

Foreign legal person 0.78% 18896037 0

SECURITIES LIMITED

HONG KONG SECURITIES

Foreign legal person 0.66% 15842531 0

CLEARING COMPANY LIMITED

Top 10 unrestricted shareholders

Unrestricted ordinary Shares by class

Name of shareholder

shares held Class Shares

OVERSEAS CHINESE TOWN HOLDINGS

523746932 RMB-denominated ordinary share 523746932

COMPANY

CITIC SECURITIES BROKERAGE (HONG

180001110 Domestically listed foreign share 180001110

KONG) CO. LTD.WANG JINGFENG 111411100 RMB-denominated ordinary share 111411100

GUOYUAN SECURITIES BROKER (HK)

59227225 Domestically listed foreign share 59227225

CO. LTD.HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign share 57289100

GAOLING FUNDL.P. 52801250 Domestically listed foreign share 52801250

NAM NGAI 23000000 Domestically listed foreign share 23000000

CHINA MERCHANTS SECURITIES (HK)

19457720 Domestically listed foreign share 19457720

LIMITED

BOCOM INTERNATIONAL SECURITIES

18896037 Domestically listed foreign share 18896037

LIMITED

HONG KONG SECURITIES CLEARING

15842531 RMB-denominated ordinary share 15842531

COMPANY LIMITED

Related or acting-in-concert Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first

3Konka Group Co. Ltd. Third Quarterly Report 2022

parties among shareholders above majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for short)

holds 180001110 and 18360000 ordinary shares in the Company respectively through

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

Limited. Happy Bloom Investment Limited and Overseas Chinese Town Holdings Company

are parties acting in concert. Other than that it is unknown whether the other shareholders are

related parties or acting-in-concert parties or not.Top 10 ordinary shareholders

Wang Jingfeng holds 111411100 A-shares in the Company through his securities account for

involved in securities margin

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

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

□ Applicable √ Not applicable

III Other Significant Events

√ Applicable □ Not applicable

(I) The non-public offering of corporate bonds: So far a total of RMB1.2 billion of corporate

bonds has been issued on 8 September 2022 and 18 October 2022 for the RMB2.7 billion

corporate bonds non-public offering program and the issuance of the remaining amount of

corporate bonds is in progress.(II) Chongqing Konka Semiconductor Photoelectric Industrial Park has been officially completed

and starts production and trial operation. And construction of the Xi’an Konka Smart Appliances

Headquarters Project is about to be completed.IV Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.

30 September 2022

Unit: RMB

Item 30 September 2022 1 January 2022

Current assets:

Monetary assets 5789648566.31 6489553211.24

Settlement reserve

Loans to other banks and financial institutions

Held-for-trading financial assets

Derivative financial assets

Notes receivable 1227793096.11 1777477481.28

Accounts receivable 2906003576.69 3397729481.07

Receivables financing 23044759.72 71490688.54

Prepayments 373941807.92 631400953.86

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 1916724393.02 1837459705.64

Including: Interest receivable 4076863.43 2573082.79

Dividends receivable

Financial assets purchased under resale agreements

Inventories 4091460535.16 4068537809.18

Contract assets

Assets held for sale

4Konka Group Co. Ltd. Third Quarterly Report 2022

Current portion of non-current assets 23221539.24 28105523.78

Other current assets 3043370980.65 2299963391.24

Total current assets 19395209254.82 20601718245.83

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables 4430400.00 18495499.14

Long-term equity investments 6339642148.66 5902588939.51

Investments in other equity instruments 23841337.16 23841337.16

Other non-current financial assets 2702852398.04 2293361603.68

Investment property 769667119.64 776525061.54

Fixed assets 3888453944.19 4010295277.14

Construction in progress 2086668242.52 1490777831.39

Productive living assets

Oil and gas assets

Right-of-use assets 62105021.51 71210415.37

Intangible assets 964809503.20 975295916.08

Development costs 22498875.09 16870310.70

Goodwill 22196735.11 22196735.11

Long-term prepaid expense 344957911.79 297497383.39

Deferred income tax assets 900412122.73 725315725.10

Other non-current assets 1695607267.24 2648530490.12

Total non-current assets 19828143026.88 19272802525.43

Total assets 39223352281.70 39874520771.26

Current liabilities:

Short-term borrowings 8746004712.06 9920675121.08

Borrowings from the central bank

Loans from other banks and financial institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1017099083.62 1116336958.91

Accounts payable 2529930427.85 3784315091.41

Advances from customers

Contract liabilities 769921677.08 652910408.02

Financial assets sold under repurchase agreements

Customer deposits and deposits from other banks and financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 161956025.91 410747084.80

Taxes and levies payable 359254927.80 295825170.41

Other payables 1412888766.44 1788177748.59

Including: Interest payable 59235455.90 174383177.08

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets held for sale

Current portion of non-current liabilities 670292800.68 5089586269.32

Other current liabilities 115907033.70 109742188.24

Total current liabilities 15783255455.14 23168316040.78

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 8366033001.46 3529140539.09

Bonds payable 4090653826.03 2293698899.30

Including: Preference shares

Perpetual bonds

5Konka Group Co. Ltd. Third Quarterly Report 2022

Lease liabilities 51963509.22 42532869.63

Long-term payables 21433136.36 140687570.78

Long-term employee benefits payable 4958389.07 5111296.75

Provisions 112487613.76 106276535.85

Deferred income 274491271.90 206302424.92

Deferred income tax liabilities 79547666.58 76894581.97

Other non-current liabilities 118961639.55 104610663.76

Total non-current liabilities 13120530053.93 6505255382.05

Total liabilities 28903785509.07 29673571422.83

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 365814774.70 234389963.10

Less: Treasury stock

Other comprehensive income -10936468.75 -20336087.87

Specific reserve

Surplus reserves 1244180364.24 1244180364.24

General reserve

Retained earnings 5244292243.06 5229098788.94

Total equity attributable to owners of the Company as the parent 9251296321.25 9095278436.41

Non-controlling interests 1068270451.38 1105670912.02

Total owners’ equity 10319566772.63 10200949348.43

Total liabilities and owners’ equity 39223352281.70 39874520771.26

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2022 Q1~Q3 2021

1. Revenues 24596016642.07 31626746378.63

Including: Operating revenue 24596016642.07 31626746378.63

Interest income

Insurance premium income

Fee and commission income

2. Costs and expenses 26126675368.63 32958502701.12

Including: Cost of sales 23975162049.26 30206985064.55

Interest expense

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 77125711.11 65291404.77

Selling expense 871347414.06 1024179934.62

Administrative expense 577188118.60 553122321.69

R&D expense 363505963.40 433072311.03

Finance costs 262346112.20 675851664.46

Including: Interest expense 692836273.51 743648860.62

Interest income 190309274.96 123952533.58

6Konka Group Co. Ltd. Third Quarterly Report 2022

Add: Other income 584491772.86 760063480.80

Return on investment (“-” for loss) 836530565.91 467513252.27

Including: Share of profit or loss of joint ventures and associates 77512338.05 75468924.12

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) 21962896.84 80454582.18

Credit impairment loss (“-” for loss) -61242970.31 -83508804.27

Asset impairment loss (“-” for loss) -13523962.19 -37285530.58

Asset disposal income (“-” for loss) 12420007.06 613907.69

3. Operating profit (“-” for loss) -150020416.39 -143905434.40

Add: Non-operating income 97857275.38 65341959.01

Less: Non-operating expense 6543182.17 8552951.51

4. Gross profit (“-” for loss) -58706323.18 -87116426.90

Less: Income tax expense -72029417.98 41529133.86

5. Net profit (“-” for net loss) 13323094.80 -128645560.76

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 13323094.80 -128645560.76

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

5.2 By ownership

5.2.1 Net profit attributable to shareholders of the Company as the parent

135590724.52-126378339.68

(“-” for net loss)

5.2.1 Net profit attributable to non-controlling interests (“-” for net loss) -122267629.72 -2267221.08

6. Other comprehensive income net of tax 10932642.27 -891213.66

Attributable to owners of the Company as the parent 9399619.12 244470.51

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 9399619.12 244470.51

6.2.1 Other comprehensive income that will be reclassified to profit or

-38929.341486086.18

loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the reclassification of

financial assets

6.2.4 Credit impairment allowance for other debt investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign currency-

9438548.46-1241615.67

denominated financial statements

6.2.7 Other

Attributable to non-controlling interests 1533023.15 -1135684.17

7. Total comprehensive income 24255737.07 -129536774.42

7.1 Attributable to owners of the Company as the parent 144990343.64 -126133869.17

7.2 Attributable to non-controlling interests -120734606.57 -3402905.25

8. Earnings per share

8.1 Basic earnings per share 0.0563 -0.0525

8.2 Diluted earnings per share 0.0563 -0.0525

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua

7Konka Group Co. Ltd. Third Quarterly Report 2022

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2022 Q1~Q3 2021

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 24332330642.99 30451464764.24

Net increase in customer deposits and deposits from other banks and

financial institutions

Net increase in borrowings from the central bank

Net increase in loans from other financial institutions

Premiums received on original insurance contracts

Net proceeds from reinsurance

Net increase in deposits and investments of policy holders

Interest fees and commissions received

Net increase in loans from other banks and financial institutions

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax and levy rebates 552849875.52 333893980.47

Cash generated from other operating activities 1168029091.16 1172860994.12

Subtotal of cash generated from operating activities 26053209609.67 31958219738.83

Payments for commodities and services 23012128420.93 29601035244.82

Net increase in loans and advances to customers

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

institutions

Payments for claims on original insurance contracts

Net increase in loans to other banks and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 1434144605.34 1511165362.18

Taxes and levies paid 371845155.79 710317427.85

Cash used in other operating activities 1302687778.79 1577936087.07

Subtotal of cash used in operating activities 26120805960.85 33400454121.92

Net cash generated from/used in operating activities -67596351.18 -1442234383.09

2. Cash flows from investing activities:

Proceeds from disinvestment 439435929.17 343726934.95

Return on investment 102584188.29 92533320.06

Net proceeds from the disposal of fixed assets intangible assets and other

2602109.26234447891.30

long-lived assets

Net proceeds from the disposal of subsidiaries and other business units 297094350.04 133143680.12

Cash generated from other investing activities 2593171830.43 1096314874.18

Subtotal of cash generated from investing activities 3434888407.19 1900166700.61

Payments for the acquisition of fixed assets intangible assets and other

3242155154.653121184726.92

long-lived assets

Payments for investments 578662796.46 397009568.49

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other business units 96500200.00

Cash used in other investing activities 299864897.73 339063661.31

Subtotal of cash used in investing activities 4120682848.84 3953758156.72

Net cash generated from/used in investing activities -685794441.65 -2053591456.11

3. Cash flows from financing activities:

Capital contributions received 76748000.00 101867396.60

Including: Capital contributions by non-controlling interests to 76748000.00 101867396.60

8Konka Group Co. Ltd. Third Quarterly Report 2022

subsidiaries

Borrowings received 17289669687.55 17581759690.86

Cash generated from other financing activities 299933896.84 806757381.62

Subtotal of cash generated from financing activities 17666351584.39 18490384469.08

Repayment of borrowings 16092793775.72 11785342761.93

Interest and dividends paid 833208967.32 812169473.64

Including: Dividends paid by subsidiaries to non-controlling interests 28420000.00 7497000.00

Cash used in other financing activities 695068775.31 680675618.15

Subtotal of cash used in financing activities 17621071518.35 13278187853.72

Net cash generated from/used in financing activities 45280066.04 5212196615.36

4. Effect of foreign exchange rates changes on cash and cash equivalents 61441973.08 -5440009.98

5. Net increase in cash and cash equivalents -646668753.71 1710930766.18

Add: Cash and cash equivalents beginning of the period 5968347219.03 4298056113.24

6. Cash and cash equivalents end of the period 5321678465.32 6008986879.42

(II) Independent Auditor’s Report

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

auditor.□Yes √ No

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

Konka Group Co. Ltd

27 October 2022

9