Konka Group Co. Ltd. Third Quarterly Report 2023

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2023-59

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 2023

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

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

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

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

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

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

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

contents.

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

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

carried in this Report are factual accurate and complete.

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

independent auditor.□Yes √ No

1Konka Group Co. Ltd. Third Quarterly Report 2023

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Reason for retrospective restatement:

Change to accounting policies

YoY YoY change

Q3 2022 Q1-Q3 2022

Q3 2023 change (%) Q1-Q3 2023 (%)

Before Restated Restated Before Restated Restated

Operating revenue (RMB) 4404631998.81 7700546365.26 7700546365.26 -42.80% 14876693170.75 24596016642.07 24596016642.07 -39.52%

Net profit attributable to the

listed company’s -521630694.97 -37227714.31 -36399344.07 -1333.08% -714870927.30 135590724.52 136867098.45 -622.31%

shareholders (RMB)

Net profit attributable to the

listed company’s

shareholders before -486155733.41 -335657322.29 -334828952.05 -45.20% -1377750103.82 -1078013504.00 -1076737130.07 -27.96%

exceptional gains and

losses (RMB)

Net cash generated

from/used in operating — — — — -322441824.76 -67596351.18 -67596351.18 -377.01%

activities (RMB)

Basic earnings per share

(RMB/share) -0.2166 -0.0155 -0.0152 -1325.00% -0.2969 0.0563 0.0568 -622.71%

Diluted earnings per share

(RMB/share) -0.2166 -0.0155 -0.0152 -1325.00% -0.2969 0.0563 0.0568 -622.71%

Weighted average return on

equity (%) -7.10% -0.41% -0.40% -6.70% -9.73% 1.48% 1.49% -11.22%

31 December 2022 Change (%)

30 September 2023

Before Restated Restated

Total assets (RMB) 38337653005.04 38016368073.05 38027575163.66 0.82%

Equity attributable to the

listed company’s 7057196968.92 7640399721.99 7641975956.16 -7.65%

shareholders (RMB)

2Konka Group Co. Ltd. Third Quarterly Report 2023

Reason for change to accounting policies and correction of accounting errors:

On 30 November 2022 the Ministry of Finance issued Interpretation No. 16 for the AccountingStandards for Business Enterprises which stipulates the “accounting treatments for deferredincome taxes associated with assets and liabilities arising from a single transaction to which theinitial recognition exemption does not apply” effective for the Company as of 1 January 2023.For lease liabilities and right-of-use assets recognized at the beginning of the earliest period of

financial statement presentation in which the provision is first implemented that give rise to

taxable temporary differences and deductible temporary differences as a result of a single

transaction to which the provision applies the Company has adjusted the cumulative effect to

retained earnings at the beginning of the earliest period of financial statement presentation and

other relevant financial statement items in accordance with the said provision and Accounting

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

√ Applicable □ Not applicable

Unit: RMB

Item Q3 2023 Q1-Q3 2023 Note

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

allowance write-offs) -53968800.63 180474900.02

Government grants through profit or loss (exclusive of government grants

continuously given in the Company’s ordinary course of business at fixed 37608896.69 180799942.96

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

liabilities and available-for-sale financial assets (exclusive of the effective -51807502.59 -147778504.67

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

Gain or loss on loan entrustments 33131323.23 95275330.31

Non-operating income and expense other than the above -2229045.74 3480761.94

Other gains and losses that meet definition of nonrecurring gain/loss 584664150.75

Less: Income tax effects -10555553.64 215667563.28

Non-controlling interests effects (net of tax) 8765386.16 18369841.51

Total -35474961.56 662879176.52 --

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

√ Applicable □ Not applicable

Amount involved

Item Reason

(RMB)

As the company disposed of part of the equity of the subordinate participating

Trading companies it no longer had a significant impact resulting in a change in the accounting

584164150.75

financial assets method of the reporting period from long-term equity investment (equity method) to

transactional financial assets resulting in non-recurring profit and loss

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in

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

Securities to the Public—Exceptional Gain/Loss Items:

√ Applicable □ Not applicable

Item Amount involved (RMB) Reason

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

4309814.75

software at fixed quotas or amounts as per government’s uniform standards

3Konka Group Co. Ltd. Third Quarterly Report 2023

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

√ Applicable □ Not applicable

Unit: RMB

Percentage

Item 30 September 2023 1 January 2023 Main reason for change

of change

Recovery of notes receivable in the Reporting

Notes receivable 652341788.21 1059737243.54 -38.44%

Period

Increased notes receivable that were endorsed or

Receivables financing 395169133.71 237187228.44 66.61%

discounted in the Reporting Period

Transfer of construction in progress to investment

Investment property 1389010883.92 802407844.60 73.11%

property in the Reporting Period

Construction in Transfer of construction in progress to investment

1166007217.851990361377.07-41.42%

progress property fixed assets etc. in the Reporting Period

Current portion of Reclassification of bonds payable and long-term

6400054131.76409220030.691463.96%

non-current liabilities borrowings in the Reporting Period

Reclassification of bonds payable to the current

Bonds payable 2427442201.30 4792392044.13 -49.35% portion of non-current liabilities in the Reporting

Period

It is mainly the impact of recognizing deferred

Deferred income tax income tax liabilities on the income generated by

206880232.2599030646.40108.91%

liabilities transactional financial assets under the differences

in tax law and accounting law

Percentage

Item Q1-Q3 2023 Q1-Q3 2022 Main reason for change

of change

Decreased revenue of the industry trade business

Operating revenue 14876693170.75 24596016642.07 -39.52%

during Q1-Q3 2023

Net profit attributable

to the listed Decreased other income equity transfer income

-714870927.30136867098.45-622.31%

company’s and exchange gains during Q1-Q3 2023

shareholders

Finance costs 360849912.60 262346112.20 37.55% Exchange rate fluctuations

Net cash generated

from/used in -322441824.76 -67596351.18 -377.01% Decreased tax and levy rebates during Q1-Q3 2023

operating activities

Net cash generated

Decreased total investment amount during Q1-Q3

from/used in investing -64712448.47 -685794441.65 90.56%

2023

activities

Net cash generated

from/used in 250756759.78 45280066.04 453.79% Decreased interest expense during Q1-Q3 2023

financing activities

II Shareholder Information

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

Rights as well as Holdings of Top 10 Shareholders

Unit: share

Number of ordinary shareholders 85761 Number of preference shareholders with resumed voting rights (if any) 0

Top 10 shareholders

Shares in pledge

Shareholdin Total shares Restricted

Name of shareholder Nature of shareholder marked or frozen

g percentage held shares held

Status Shares

OVERSEAS CHINESE TOWN

21.75%5237469320

HOLDINGS COMPANY State-owned legal person

CITIC SECURITIES

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

CO. LTD.WANG JINGFENG Domestic natural person 3.95% 95000000 0

GUOYUAN SECURITIES Foreign legal person 2.45% 58927225 0

4Konka Group Co. Ltd. Third Quarterly Report 2023

BROKER (HK) CO. LTD.HOLY TIME GROUP

2.38%572891000

LIMITED Foreign legal person

GAOLING FUNDL.P. Foreign legal person 2.11% 50894250 0

NAM NGAI Foreign natural person 0.96% 23000000 0

CHINA MERCHANTS

0.80%193142200

SECURITIES (HK) LIMITED State-owned legal person

BOCOM INTERNATIONAL

Foreign legal person 0.78% 18896037 0 SECURITIES LIMITED

ZHANG SUFEN Domestic natural person 0.62% 14830000 0

Top 10 unrestricted shareholders

Unrestricted Shares by class and number

Name of shareholder ordinary

Class Shares

shares held

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

CITIC SECURITIES BROKERAGE (HONG KONG)

180001110

CO. LTD. Domestically listed foreign share

180001110

WANG JINGFENG 95000000 RMB-denominated ordinary share 95000000

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

HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign share 57289100

GAOLING FUNDL.P. 50894250 Domestically listed foreign share 50894250

NAM NGAI 23000000 Domestically listed foreign share 23000000

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

BOCOM INTERNATIONAL SECURITIES LIMITED 18896037 Domestically listed foreign share 18896037

ZHANG SUFEN 14830000 RMB-denominated ordinary share 14830000

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

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

short) holds 180001110 and 18360000 ordinary shares in the Company

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

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

Chinese Town Holdings Company are parties acting in concert. Other than that it is

unknown whether the other shareholders are related parties or acting-in-concert parties

or not.Top 10 ordinary shareholders involved Wang Jingfeng holds 95000000 A-shares in the Company through his securities

in securities margin trading (if any) account for customer credit trading guarantee in Guotai Junan Securities Co. Ltd.(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

III Other Significant Events

√ Applicable □ Not applicable

(I) Offering of corporate bonds: The non-public offering of no more than RMB2.3 billion of

corporate bonds for professional investors has been approved by the Company’s shareholders’

general meeting and the relevant matters are being pushed forward as planned.(II) Initiation and establishment of funds: The total scale of the Oriental-Konka Industry M&A Fund

was RMB1001000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500

million accounting for 49.95% of the total units. By the date of this report Shenzhen Konka

Investment Holding Co. Ltd. has contributed RMB487344000. The fund invested in Jiangxi

Yahua Electronic Materials Co. Ltd. Potron Technology Co. Ltd. etc.The total scale of the Kunshan-CITIC-Konka Emerging Industry Development Investment Fund

was RMB1006000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500

million accounting for 49.70% of the total units. By the date of this report Shenzhen Konka

5Konka Group Co. Ltd. Third Quarterly Report 2023

Investment Holding Co. Ltd. has contributed RMB195.21 million. The fund invested in

UNIONTECH Hercules Microelectronics Co. Ltd. etc.The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was RMB500

million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB200 million accounting

for 40% of the total units. By the date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB200000000. The fund invested in Feidi Technology (Shenzhen) Co. Ltd.Allystar Technology (Shenzhen) Co. Ltd. etc.The total scale of Yancheng Kangyan Industry Investment Fun was RMB3000 million. Shenzhen

Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management

Co. Ltd. contributed RMB1201500000 accounting for 40.05% of the total units. By the date of

this report Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity

Investment Management Co. Ltd. have contributed RMB217.36 million. The fund invested in

Anhui Zhongdian Xingfa and Xinlong Co. Ltd. Chongqing E2info Technology Co. Ltd. etc.The total scale of Yibin Kanghui Electronic Information Industry Equity Investment Fund was

RMB1002000000. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital

Equity Investment Management Co. Ltd. contributed RMB401 million accounting for 40.02% of

the total units. By the issuance date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB104 million. The fund invested in Chongqing E2info Technology Co. Ltd. etc.The total scale of Chongqing Kangxin Equity Investment Fund was RMB2 billion. Shenzhen

Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management

Co. Ltd. contributed RMB1 billion accounting for 50% of the total units. By the date of this report

Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment

Management Co. Ltd. have contributed RMB148248300. The fund invested in Shanghai VEIGLO

Information System Co. Ltd. Jiangxi Taide Wisdom Technology Co. Ltd. etc.IV Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.

30 September 2023

Unit: RMB

Item 30 September 2023 1 January 2023

Current assets:

Monetary assets 6253165346.38 5988095490.71

Settlement reserve

Loans to other banks and financial institutions

Held-for-trading financial assets 555764731.77

Derivative financial assets

Notes receivable 652341788.21 1059737243.54

Accounts receivable 2245056835.29 2036734836.22

Receivables financing 395169133.71 237187228.44

6Konka Group Co. Ltd. Third Quarterly Report 2023

Prepayments 333699692.12 389947652.39

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 1060638625.01 1442124845.58

Including: Interest receivable 6340182.53 3878580.64

Dividends receivable 272999.43

Financial assets purchased under resale agreements

Inventories 4324725761.85 4409767756.22

Contract assets 1183257.16

Assets held for sale

Current portion of non-current assets 3630000.00 14630000.00

Other current assets 2525824854.75 2038841225.83

Total current assets 18351200026.25 17617066278.93

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables 800400.00

Long-term equity investments 5796071862.55 6351232955.58

Investments in other equity instruments 23841337.16 23841337.16

Other non-current financial assets 2118128277.14 2639662273.32

Investment property 1389010883.92 802407844.60

Fixed assets 4802969626.15 4114029693.38

Construction in progress 1166007217.85 1990361377.07

Productive living assets

Oil and gas assets

Right-of-use assets 174439722.67 50019838.68

Intangible assets 1170091955.48 1116739707.27

Development costs

Goodwill 22196735.11 22196735.11

Long-term prepaid expense 486663304.45 387309503.07

Deferred income tax assets 1495647620.69 1201661841.23

Other non-current assets 1341384435.62 1710245378.26

Total non-current assets 19986452978.79 20410508884.73

Total assets 38337653005.04 38027575163.66

Current liabilities:

Short-term borrowings 6482928008.32 7579559304.97

Borrowings from the central bank

Loans from other banks and financial institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1221879934.79 1054573822.04

Accounts payable 2547454181.25 2659946562.93

Advances from customers 825.69

Contract liabilities 715656923.51 601044358.35

Financial assets sold under repurchase agreements

Customer deposits and deposits from other banks and financial

institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 193392165.64 348608204.05

Taxes and levies payable 200419669.53 291102679.36

Other payables 1780160011.33 1895711373.34

Including: Interest payable 111390.67 29590464.00

Dividends payable

7Konka Group Co. Ltd. Third Quarterly Report 2023

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets held for sale

Current portion of non-current liabilities 6400054131.76 409220030.69

Other current liabilities 54772157.37 68449783.71

Total current liabilities 19596717183.50 14908216945.13

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 7340692541.83 8906931402.89

Bonds payable 2427442201.30 4792392044.13

Including: Preference shares

Perpetual bonds

Lease liabilities 148313549.16 36586639.16

Long-term payables 6675505.17 7964127.18

Long-term employee benefits payable 4748631.27 4894209.73

Provisions 163180690.79 159395579.55

Deferred income 370720921.42 334844966.31

Deferred income tax liabilities 206880232.25 99030646.40

Other non-current liabilities 377449450.10 314233260.08

Total non-current liabilities 11046103723.29 14656272875.43

Total liabilities 30642820906.79 29564489820.56

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 495476795.47 365247361.05

Less: Treasury stock

Other comprehensive income -14962681.43 -14265181.63

Specific reserve

Surplus reserves 1244180364.24 1244180364.24

General reserve

Retained earnings 2924557082.64 3638868004.50

Total equity attributable to owners of the Company as the parent 7057196968.92 7641975956.16

Non-controlling interests 637635129.33 821109386.94

Total owners’ equity 7694832098.25 8463085343.10

Total liabilities and owners’ equity 38337653005.04 38027575163.66

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

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Revenues 14876693170.75 24596016642.07

Including: Operating revenue 14876693170.75 24596016642.07

Interest income

Insurance premium income

Fee and commission income

2. Costs and expenses 16519196501.28 26126675368.63

Including: Cost of sales 14318015493.73 23975162049.26

Interest expense

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract reserve

8Konka Group Co. Ltd. Third Quarterly Report 2023

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 67933156.53 77125711.11

Selling expense 853292416.89 871347414.06

Administrative expense 562127977.91 577188118.60

R&D expense 356977543.62 363505963.40

Finance costs 360849912.60 262346112.20

Including: Interest expense 650797948.91 692836273.51

Interest income 202850169.71 190309274.96

Add: Other income 176081823.18 584491772.86

Return on investment (“-” for loss) 775916021.84 836530565.91

Including: Share of profit or loss of joint ventures and

-51151076.0477512338.05

associates

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) -191419983.75 21962896.84

Credit impairment loss (“-” for loss) -142532702.78 -61242970.31

Asset impairment loss (“-” for loss) -16583397.71 -13523962.19

Asset disposal income (“-” for loss) -15911644.20 12420007.06

3. Operating profit (“-” for loss) -1056953213.95 -150020416.39

Add: Non-operating income 23007144.67 97857275.38

Less: Non-operating expense 12873372.03 6543182.17

4. Gross profit (“-” for loss) -1046819441.31 -58706323.18

Less: Income tax expense -151286064.19 -73526196.93

5. Net profit (“-” for net loss) -895533377.12 14819873.75

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) -895533377.12 13323094.80

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

-714870927.30136867098.45

parent (“-” for net loss)

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

-180662449.82-122047224.70

loss)

6. Other comprehensive income net of tax -3200691.35 10932642.27

Attributable to owners of the Company as the parent -697499.80 9399619.12

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 -697499.80 9399619.12

6.2.1 Other comprehensive income that will be reclassified to

-209777.61-38929.34

profit or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the

9Konka Group Co. Ltd. Third Quarterly Report 2023

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-

-487722.199438548.46

denominated financial statements

6.2.7 Other

Attributable to non-controlling interests -2503191.55 1533023.15

7. Total comprehensive income -898734068.47 25752516.02

7.1 Attributable to owners of the Company as the parent -715568427.10 146266717.57

7.2 Attributable to non-controlling interests -183165641.37 -120514201.55

8. Earnings per share

8.1 Basic earnings per share -0.2969 0.0568

8.2 Diluted earnings per share -0.2969 0.0568

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

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2023 Q1~Q3 2022

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 14031821909.50 24332330642.99

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 168724402.85 552849875.52

Cash generated from other operating activities 865953981.35 1168029091.16

Subtotal of cash generated from operating activities 15066500293.70 26053209609.67

Payments for commodities and services 12657096771.12 23012128420.93

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 1356531982.05 1434144605.34

Taxes and levies paid 361381640.24 371845155.79

Cash used in other operating activities 1013931725.05 1302687778.79

Subtotal of cash used in operating activities 15388942118.46 26120805960.85

Net cash generated from/used in operating activities -322441824.76 -67596351.18

2. Cash flows from investing activities:

Proceeds from disinvestment 1120024435.49 439435929.17

Return on investment 105809502.45 102584188.29

Net proceeds from the disposal of fixed assets intangible assets and

6336467.502602109.26

other long-lived assets

Net proceeds from the disposal of subsidiaries and other business 18818889.67 297094350.04

10Konka Group Co. Ltd. Third Quarterly Report 2023

units

Cash generated from other investing activities 568418046.33 2593171830.43

Subtotal of cash generated from investing activities 1819407341.44 3434888407.19

Payments for the acquisition of fixed assets intangible assets and other

1369507381.233242155154.65

long-lived assets

Payments for investments 6000000.00 578662796.46

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other business

units

Cash used in other investing activities 508612408.68 299864897.73

Subtotal of cash used in investing activities 1884119789.91 4120682848.84

Net cash generated from/used in investing activities -64712448.47 -685794441.65

3. Cash flows from financing activities:

Capital contributions received 1816216.81 76748000.00

Including: Capital contributions by non-controlling interests to

1816216.8176748000.00

subsidiaries

Borrowings received 7922161074.27 17289669687.55

Cash generated from other financing activities 543206827.09 299933896.84

Subtotal of cash generated from financing activities 8467184118.17 17666351584.39

Repayment of borrowings 6835894584.88 16092793775.72

Interest and dividends paid 665357095.47 833208967.32

Including: Dividends paid by subsidiaries to non-controlling interests 735000.00 28420000.00

Cash used in other financing activities 715175678.04 695068775.31

Subtotal of cash used in financing activities 8216427358.39 17621071518.35

Net cash generated from/used in financing activities 250756759.78 45280066.04

4. Effect of foreign exchange rates changes on cash and cash equivalents 37092762.35 61441973.08

5. Net increase in cash and cash equivalents -99304751.10 -646668753.71

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

6. Cash and cash equivalents end of the period 5362607259.80 5321678465.32

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

Implementation of the New Accounting Standards Implemented since 2023

√ Applicable □ Not applicable

Notes to adjustment

On 30 November 2022 the Ministry of Finance issued Interpretation No. 16 for the AccountingStandards for Business Enterprises which stipulates the “accounting treatments for deferredincome taxes associated with assets and liabilities arising from a single transaction to which theinitial recognition exemption does not apply” effective for the Company as of 1 January 2023.For lease liabilities and right-of-use assets recognized at the beginning of the earliest period of

financial statement presentation in which the provision is first implemented that give rise to

taxable temporary differences and deductible temporary differences as a result of a single

transaction to which the provision applies the Company has adjusted the cumulative effect to

retained earnings at the beginning of the earliest period of financial statement presentation and

other relevant financial statement items in accordance with the said provision and Accounting

Standard No. 18 for Business Enterprises—Income Tax.(III) Independent Auditor’s Report

11Konka Group Co. Ltd. Third Quarterly Report 2023

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

30 October 2023

12