Konka Group Co. Ltd. First Quarterly Report 2022

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2022-37

Bond Code: 114489 114524 Bond Name: 19 Konka 04 19 Konka 06

114894 133003 21 Konka 01 21 Konka 02

133040 21 Konka 03

KONKA GROUP CO. LTD.FIRST 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

Q1 2022 Q1 2021 YoY change (%)

Operating revenue (RMB) 8320135785.93 9822169119.30 -15.29%

Net profit attributable to the listed company’s

103900130.0272822573.6642.68%

shareholders (RMB)

Net profit attributable to the listed company’s

shareholders before exceptional gains and -418548047.01 -389266066.84 -7.52%

losses (RMB)

Net cash generated from/used in operating -630928798.94 -529240793.59 -19.21%

activities (RMB)

1Konka Group Co. Ltd. First Quarterly Report 2022

Basic earnings per share (RMB/share) 0.0431 0.0302 42.72%

Diluted earnings per share (RMB/share) 0.0431 0.0302 42.72%

Weighted average return on equity (%) 1.13% 0.86% 0.27%

31 March 2022 31 December 2021 Change (%)

Total assets (RMB) 40541409206.02 39874520771.26 1.67%

Equity attributable to the listed company’s

9333407553.359095278436.412.62%

shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q1 2022 Note

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

306961114.32

write-offs)

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

course of business or granted at certain quotas or amounts according to the government’s unified 200108076.74

standards

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

and investment income from disposal of trading financial assets financial liabilities and

17220591.79

available-for-sale financial assets other than effective hedge business related to the Company’s

normal operating businesses

Gain/loss on entrustment loans 25443441.59

Other non-operating income and expense other than the above 8525457.65

Less: Income tax effects 28778356.57

Non-controlling interests effects (after tax) 7032148.49

Total 522448177.03 --

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 1087469.55 course of business at fixed quotas or amounts as per the

government’s policies and standards

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

√ Applicable □ Not applicable

Unit: RMB

Change

Item 31 March 2022 1 January 2022 Explanation of why

(%)

Increased prepayments to suppliers and partners in the

Prepayments 195542271.36 4 10747084.80 -52.39%

Reporting Period

Current portion of

5089586269. Repayment of bonds payable upon maturity in the Reporting

non-current 3273680267.45 -35.68%

32 Period

liabilities

2Konka Group Co. Ltd. First Quarterly Report 2022

Long-term 3529140539.

5703764508.16 61.62% New borrowings in the Reporting Period

borrowings 09

Change

Item Q1 2022 Q1 2021 Explanation of why

(%)

Gains on disposal of equity investments in the Reporting

Return on investment 356591250.76 1 43491581.78 148.51%

Period

Net cash generated Decreased payments for acquisition and construction of fixed

-1801820739.from/used in -587891465.97 67.37% assets intangible assets and other long-term assets in the

71

investing activities Reporting Period

Net cash generated

2716695159. Repayment of interest-bearing liabilities in the Reporting

from/used in 796443470.45 -70.68%

59 Period

financing activities

II Shareholder Information

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

Rights as well as Holdings of Top 10 Shareholders

Unit: share

Number of preference shareholders with resumed

Number of ordinary shareholders 88954 0

voting rights (if any)

Top 10 shareholders

Restricted Shares in pledge

Nature of Shareholding Total shares

Name of shareholder shares marked or frozen

shareholder percentage held

held Status Shares

OVERSEAS CHINESE TOWN State-owned legal

21.75%5237469320

HOLDINGS COMPANY person

CITIC SECURITIES BROKERAGE Foreign legal

7.48%1800011100

(HONG KONG) CO. LTD. person

Domestic natural

WANG JINGFENG 4.63% 111381100 0

person

GUOYUAN SECURITIES Foreign legal

2.46%593003250

BROKER (HK) CO. LTD. person

Foreign legal

HOLY TIME GROUP LIMITED 2.38% 57289100 0

person

Foreign legal

GAOLING FUNDL.P. 2.19% 52801250 0

person

Foreign natural

NAM NGAI 0.94% 22567540 0

person

CHINA MERCHANTS State-owned legal

0.80%193142200

SECURITIES (HK) LIMITED person

BOCOM INTERNATIONAL Foreign legal

0.78%188960370

SECURITIES LIMITED person

Domestic natural

LI HANFA 0.73% 17680000 0

person

Top 10 unrestricted shareholders

Unrestricted Shares by class

Name of shareholder ordinary

shares held Class Shares

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

CITIC SECURITIES BROKERAGE (HONG KONG)

180001110 Domestically listed foreign share 180001110

CO. LTD.WANG JINGFENG 111381100 RMB-denominated ordinary share 111381100

GUOYUAN SECURITIES BROKER (HK) CO. LTD. 59300325 Domestically listed foreign share 59300325

HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign share 57289100

3Konka Group Co. Ltd. First Quarterly Report 2022

GAOLING FUNDL.P. 52801250 Domestically listed foreign share 52801250

NAM NGAI 22567540 Domestically listed foreign share 22567540

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

BOCOM INTERNATIONAL SECURITIES LIMITED 18896037 Domestically listed foreign share 18896037

LI HANFA 17680000 RMB-denominated ordinary share 17680000

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 respectively

Related or acting-in-concert parties

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

among shareholders above

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.Wang Jingfeng holds 111381100 A-shares in the Company through his securities account

Top 10 shareholders involved in for customer credit trading guarantee in Guotai Junan Securities Co. Ltd.securities margin trading (if any) Li Hanfa holds 17680000 A-shares in the Company through his securities account for

customer credit trading guarantee in Western 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 public offering of corporate bonds of RMB2.7 billion has been

approved by the general meeting of the Company and is progressing as scheduled.(II) Acquisition of assets through share offering and cash payment and raising the matching funds &

the relevant related-party transaction: On 10 September 2021 the Proposal on Acquisition of Assets

through Share Offering and Cash Payment and Raising the Matching Funds & the Relevant

th th

Related-Party Transaction and other relevant proposals were approved at the 46 Meeting of the 9

Board of Directors of the Company. As such the Company intended to purchase the 100% equity

interests in Ganzhou MingGao Technology Co. Ltd. (Ganzhou MingGao) from 11 Ganzhou

MingGao shareholders including Shenzhen MingGao Investment Holding Co. Ltd. by way of share

offering acquire the 100% equity interests in Jiangsu Highstar Battery Manufacturing Co. Ltd.(Highstar) from 33 Highstar shareholders including Jiangsu Highstar Group Co. Ltd. by way of

share offering and cash payment and raise the matching funds by share offering to the Company’s

controlling shareholder Overseas Chinese Town Holdings Company (hereinafter the “Transaction”).Since the disclosure of the pre-plan of the Transaction the Company and all stakeholders moved on

with the Transaction in an orderly manner. However since the Company and shareholders of

Highstar failed to agree on certain key terms of the Transaction the Company has terminated the

Transaction on 4 March 2022 upon careful deliberation to protect the interests of shareholders

particularly minority shareholders and the Company.

4Konka Group Co. Ltd. First Quarterly Report 2022

IV Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.

31 March 2022

Unit: RMB

Item 31 March 2022 1 January 2022

Current assets:

Monetary assets 6157395079.50 6489553211.24

Settlement reserve

Loans to other banks and financial institutions

Held-for-trading financial assets

Derivative financial assets

Notes receivable 1320501610.03 1777477481.28

Accounts receivable 3241709849.93 3397729481.07

Receivables financing 15113852.84 71490688.54

Prepayments 758545764.87 631400953.86

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 1805914972.83 1837459705.64

Including: Interest receivable 3014902.33 2573082.79

Dividends receivable

Financial assets purchased under resale agreements

Inventories 4741565640.03 4068537809.18

Contract assets

Assets held for sale

Current portion of non-current assets 22071253.94 28105523.78

Other current assets 2332697975.18 2299963391.24

Total current assets 20395515999.15 20601718245.83

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables 19690400.00 18495499.14

Long-term equity investments 6335253874.25 5902588939.51

Investments in other equity instruments 23841337.16 23841337.16

Other non-current financial assets 2414745771.10 2293361603.68

Investment property 771874837.11 776525061.54

Fixed assets 3990275572.80 4010295277.14

Construction in progress 1605481433.54 1490777831.39

Productive living assets

Oil and gas assets

Right-of-use assets 72937133.93 71210415.37

Intangible assets 973054104.18 975295916.08

5Konka Group Co. Ltd. First Quarterly Report 2022

Development costs 20087670.13 16870310.70

Goodwill 22196735.11 22196735.11

Long-term prepaid expense 296710595.29 297497383.39

Deferred income tax assets 814670464.43 725315725.10

Other non-current assets 2785073277.84 2648530490.12

Total non-current assets 20145893206.87 19272802525.43

Total assets 40541409206.02 39874520771.26

Current liabilities:

Short-term borrowings 10666627111.57 9920675121.08

Borrowings from the central bank

Loans from other banks and financial institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1158494285.51 1116336958.91

Accounts payable 3117738358.62 3784315091.41

Advances from customers

Contract liabilities 1043342365.22 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 195542271.36 410747084.80

Taxes and levies payable 276695117.14 295825170.41

Other payables 1600376400.80 1788177748.59

Including: Interest payable 187470969.52 174383177.08

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets held for sale

Current portion of non-current liabilities 3273680267.45 5089586269.32

Other current liabilities 46139077.00 109742188.24

Total current liabilities 21378635254.67 23168316040.78

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 5703764508.16 3529140539.09

Bonds payable 2294661949.61 2293698899.30

Including: Preference shares

Perpetual bonds

Lease liabilities 55711527.62 42532869.63

Long-term payables 139331991.65 140687570.78

Long-term employee benefits payable 5084980.57 5111296.75

Provisions 104800684.83 106276535.85

Deferred income 226078524.01 206302424.92

Deferred income tax liabilities 80466145.80 76894581.97

Other non-current liabilities 115695135.37 104610663.76

Total non-current liabilities 8725595447.62 6505255382.05

6Konka Group Co. Ltd. First Quarterly Report 2022

Total liabilities 30104230702.29 29673571422.83

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 369686723.19 234389963.10

Less: Treasury stock

Other comprehensive income -21403861.04 -20336087.87

Specific reserve

Surplus reserves 1244180364.24 1244180364.24

General reserve

Retained earnings 5332998918.96 5229098788.94

Total equity attributable to owners of the Company as the parent 9333407553.35 9095278436.41

Non-controlling interests 1103770950.38 1105670912.02

Total owners’ equity 10437178503.73 10200949348.43

Total liabilities and owners’ equity 40541409206.02 39874520771.26

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

2. Consolidated Income Statement

Unit: RMB

Item Q1 2022 Q1 2021

1. Revenues 8320135785.93 9822169119.30

Including: Operating revenue 8320135785.93 9822169119.30

Interest income

Insurance premium income

Fee and commission income

2. Costs and expenses 8941642023.63 10328392295.03

Including: Cost of sales 8116619145.05 9414483468.99

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 24211357.37 19689328.47

Selling expense 285983402.43 384406831.83

Administrative expense 168812302.22 190572518.95

R&D expense 119366703.91 119087736.76

Finance costs 226649112.65 200152410.03

Including: Interest expense 243819799.49 241076377.51

Interest income 52821276.29 38353963.17

Add: Other income 201195546.29 423439468.60

Return on investment (“-” for loss) 356591250.76 143491581.78

Including: Share of profit or loss of joint ventures and associates 39261474.65 -562268.87

Income from the derecognition of financial assets at amortized

7Konka Group Co. Ltd. First Quarterly Report 2022

cost (“-” for loss)

Exchange gain (“-” for loss)

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

Gain on changes in fair value (“-” for loss) 3691020.84

Credit impairment loss (“-” for loss) 2597264.26 1841004.17

Asset impairment loss (“-” for loss) -1299627.80 340422.57

Asset disposal income (“-” for loss) 6760995.88 -150371.12

3. Operating profit (“-” for loss) -55660808.31 66429951.11

Add: Non-operating income 9556431.75 3641173.82

Less: Non-operating expense 940039.98 659880.52

4. Gross profit (“-” for loss) -47044416.54 69411244.41

Less: Income tax expense -78749622.22 50676074.79

5. Net profit (“-” for net loss) 31705205.68 18735169.62

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net loss) 31705205.68 18735169.62

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 103900130.02 72822573.66

5.2.1 Net profit attributable to non-controlling interests -72194924.34 -54087404.04

6. Other comprehensive income net of tax -1524466.40 601064.90

Attributable to owners of the Company as the parent -1067773.17 292643.72

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 -1067773.17 292643.72

6.2.1 Other comprehensive income that will be reclassified to profit

or loss under the equity method

6.2.2 Changes in the fair value of other debt investments

6.2.3 Other comprehensive income arising from the reclassification

of financial assets

6.2.4 Credit impairment allowance for other debt investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of foreign

-1067773.17292643.72

currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests -456693.23 308421.18

7. Total comprehensive income 30180739.28 19336234.52

Attributable to owners of the Company as the parent 102832356.85 73115217.38

Attributable to non-controlling interests -72651617.57 -53778982.86

8. Earnings per share

8.1 Basic earnings per share 0.0431 0.0302

8.2 Diluted earnings per share 0.0431 0.0302

8Konka Group Co. Ltd. First Quarterly Report 2022

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

3. Consolidated Cash Flow Statement

Unit: RMB

Item Q1 2022 Q1 2021

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 8562218536.27 9512332772.71

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 74729863.58 56409474.20

Cash generated from other operating activities 350880406.46 657621963.41

Subtotal of cash generated from operating activities 8987828806.31 10226364210.32

Payments for commodities and services 8525783311.94 9476296648.41

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 608845622.58 625328886.69

Taxes and levies paid 87268734.60 185945308.90

Cash used in other operating activities 396859936.13 468034159.91

Subtotal of cash used in operating activities 9618757605.25 10755605003.91

Net cash generated from/used in operating activities -630928798.94 -529240793.59

2. Cash flows from investing activities:

Proceeds from disinvestment 43513336.72 45012770.66

Return on investment 19721203.55 31075186.16

Net proceeds from the disposal of fixed assets intangible assets 723375.00

159251958.00

and other long-lived assets

Net proceeds from the disposal of subsidiaries and other business 25434651.84

34089192.68

units

Cash generated from other investing activities 607115559.96 101331124.10

Subtotal of cash generated from investing activities 696508127.07 370760231.60

Payments for the acquisition of fixed assets intangible assets and 868492619.15

1803853686.63

other long-lived assets

Payments for investments 178342076.16 188127428.68

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other

business units

9Konka Group Co. Ltd. First Quarterly Report 2022

Cash used in other investing activities 237564897.73 180599856.00

Subtotal of cash used in investing activities 1284399593.04 2172580971.31

Net cash generated from/used in investing activities -587891465.97 -1801820739.71

3. Cash flows from financing activities:

Capital contributions received 35012000.00 44368539.07

Including: Capital contributions by non-controlling interests to 35012000.00

44368539.07

subsidiaries

Borrowings received 6063777376.75 7240208717.59

Cash generated from other financing activities 42697575.48 296375956.73

Subtotal of cash generated from financing activities 6141486952.23 7580953213.39

Repayment of borrowings 4923815316.07 4466489496.89

Interest and dividends paid 227296185.99 226688210.14

Including: Dividends paid by subsidiaries to non-controlling

3087000.00

interests

Cash used in other financing activities 193931979.72 171080346.77

Subtotal of cash used in financing activities 5345043481.78 4864258053.80

Net cash generated from/used in financing activities 796443470.45 2716695159.59

4. Effect of foreign exchange rates changes on cash and cash 1805449.90

3140025.95

equivalents

5. Net increase in cash and cash equivalents -420571344.56 388773652.24

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

6. Cash and cash equivalents end of the period 5547775874.47 4686829765.48

(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 April 2022

10