Konka Group Co. Ltd.Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2021-67

Bond Code: 114423 114489 Bond Name: 19 Konka 02 19 Konka 04

114524 114894 19 Konka 06 21 Konka 01

133003 133040 21 Konka 02 21 Konka 03

KONKA GROUP CO. LTD.INTERIM REPORT 2021 (SUMMARY)

Part I Important Notes

This Summary is based on the full text of the Interim Report. In order for a full understanding of the

operating results financial condition and future development planning of the Company investors are

kindly reminded to read the full text carefully on the media designated by the China Securities

Regulatory Commission (the “CSRC”).Except for the following directors all the other directors attended in person the Board meeting for the

review of this Report and its summary.Reason for not attending Proxy entrusted to attend the

Name Office title

meeting in person meeting

Independent auditor’s modified opinion:

□ Applicable √ Not applicable

Board-approved interim cash and/or stock dividend plan for ordinary shareholders:

□ Applicable √ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.Board-approved interim cash and/or stock dividend plan for preferred shareholders:

□ Applicable √ Not applicable

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.Part II Key Corporate Information

1. Stock Profile

Stock name Konka Group-A Konka Group-B Stock code 000016 200016

Konka Group Co. Ltd.Stock exchange for stock

Shenzhen Stock Exchange

listing

Contact information Board Secretary Securities Representative

Name Wu Yongjun Miao Leiqiang

Board Secretariat 24/F Konka R&D Center 28 Board Secretariat 24/F Konka R&D Center 28

Keji South Twelfth Road Science and Keji South Twelfth Road Science and

Office address

Technology Park Yuehai Street Nanshan District Technology Park Yuehai Street Nanshan

Shenzhen Guangdong Province China District Shenzhen Guangdong Province China

Tel. 0755-26609138 0755-26609138

E-mail address szkonka@konka.com szkonka@konka.com

2. Key Financial Information

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

H1 2021 H1 2020 Change (%)

Operating revenue (RMB) 21810161873.08 17524183896.74 24.46%

Net profit attributable to the listed

85449919.57 94701792.63 -9.77%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -710124637.85 -650010495.47 -9.25%

exceptional gains and losses (RMB)

Net cash generated from/used in

-1284761222.03 -1076366927.48 -19.36%

operating activities (RMB)

Basic earnings per share (RMB/share) 0.0355 0.0393 -9.67%

Diluted earnings per share (RMB/share) 0.0355 0.0393 -9.67%

Weighted average return on equity (%) 1.01% 1.16% -0.15%

30 June 2021 31 December 2020 Change (%)

Total assets (RMB) 51648378528.10 49876267493.61 3.55%

Equity attributable to the listed

8276742905.90 8428640176.97 -1.80%

company’s shareholders (RMB)

3. Shareholders and Their Holdings as at the End of the Reporting Period

Unit: share

Number of ordinary Number of preferred shareholders with resumed106460

shareholders voting rights (if any)

Top 10 shareholders

Shareh Shares in pledge marked or

Nature of olding Number of Restricted frozen

Name of shareholder

shareholder percent shares shares

age Status Shares

OVERSEAS CHINESE TOWN State-owned

21.75% 523746932 0

ENTERPRISES CO. LTD legal person

CITIC SECURITIES

Foreign legal

BROKERAGE (HONG KONG) 7.48% 180001110 0

person

CO. LTD.Domestic

WANG JINGFENG natural 4.61% 111000000 0

person

GUOYUAN SECURITIES Foreign legal

2.40% 57850325 0

BROKER (HK) CO. LTD. person

Konka Group Co. Ltd.Foreign legal

HOLY TIME GROUP LIMITED 2.38% 57289100 0

person

Foreign legal

GAOLING FUNDL.P. 2.19% 52801250 0

person

Domestic

LI HANFA natural 1.07% 25680000 0

person

Foreign

NAM NGAI natural 0.94% 22567540 0

person

CHINA MERCHANTS State-owned

0.80% 19358220 0

SECURITIES (HK) LIMITED legal person

Domestic

ZHENG LIN natural 0.52% 12500000 0

person

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

Related or shareholder Overseas Chinese Town Enterprises Co. (“OCT Group” for short) holds 180001110 and

acting-in-concert 18360000 ordinary shares in the Company respectively through CITIC Securities Brokerage (Hong

parties among Kong) Co. Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment Limited and

shareholders above Overseas Chinese Town Enterprises Co. 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 111000000 A-shares in the Company through his securities account for customer

credit trading guarantee in Guotai Junan Securities Co. Ltd.Shareholders

Li Hanfa holds 25680000 A-shares in the Company through his securities account for customer credit

conducting margin

trading guarantee in Western Securities Co. Ltd.trading

Zheng Lin holds 12500000 A-shares in the Company through his securities account for customer credit

trading guarantee in Ping An Securities Co. Ltd.4. Change of Controlling Shareholder or Actual Controller in Reporting Period

Change of the controlling shareholder in the Reporting Period:

□ Applicable √ Not applicable

The controlling shareholder remained the same in the Reporting Period.Change of the actual controller in the Reporting Period:

□ Applicable √ Not applicable

The actual controller remained the same in the Reporting Period.5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.6. Outstanding Bonds at the Date when this Report Was Authorized for Issue

√ Applicable □ Not applicable

(1) Basic Information of Bonds

Bonds

Coupon

Name Abbr. Code Issue date Due date balance

rate

(RMB’0000)

Privately placed corporate bonds in 2019 of 14 January 14 January

19 Konka 01 114418 0 5.00%

Konka Group Co. Ltd (Tranche I) (Variety I) 2019 2022

Privately placed corporate bonds in 2019 of

19 Konka 02 114423 150000 5.00%

Konka Group Co. Ltd (Tranche I) (Variety II) 14 January 14 January

Konka Group Co. Ltd.2019 2022

Privately placed corporate bonds in 2019 of

19 Konka 03 114488 3 June 2019 3 June 2022 0 4.50%

Konka Group Co. Ltd (Tranche II) (Variety I)

Privately placed corporate bonds in 2019 of

19 Konka 04 114489 3 June 2019 3 June 2022 50000 4.70%

Konka Group Co. Ltd (Tranche II) (Variety II)

Privately placed corporate bonds in 2019 of

19 Konka 05 114523 22 July 2019 22 July 2022 0 4.53%

Konka Group Co. Ltd (Tranche III) (Variety I)

Privately placed corporate bonds in 2019 of

19 Konka 06 114524 22 July 2019 22 July 2022 70000 4.70%

Konka Group Co. Ltd (Tranche III) (Variety II)

Privately placed corporate bonds in 2021 of 8 January 8 January

21 Konka 01 114894 100000 4.46%

Konka Group Co. Ltd (Tranche I) 2021 2024

Privately placed corporate bonds in 2021 of 21 May

21 Konka 02 133003 21 May 2024 50000 4.00%

Konka Group Co. Ltd (Tranche II) 2021

Privately placed corporate bonds in 2021 of

21 Konka 03 133040 9 July 2021 9 July 2024 80000 3.95%

Konka Group Co. Ltd (Tranche III)

(2) Financial Indicators as at the End of the Reporting Period

Item 30 June 2021 31 December 2020

Debt/asset ratio 79.49% 78.51%

H1 2021 H1 2020

EBITDA-to-interest coverage (times) 1.72 1.73

Part III Significant Events

In the Reporting Period the Company adhered to the development strategy integrating "technology +

industry + industrial park" and closely centered on the new mainline of "semiconductor + new

consumer electronics (CE) + industrial park". It grasped the driving force of technology explored the

value of the industry and regarded industrial parks as a carrier and platform. In addition the

Company earnestly conducted reforms transformation and upgrading. In line with its strategic

planning the Company mainly carried out the following tasks:

1. The Company has continuously raised its R&D input and technology innovation. In terms of Micro

LEDs it has built a whole-procedure Micro LED R&D and production line and launched Micro

LEDs with small spacing applied to wearables flexible Micro LEDs and 8K commercial Micro

LEDs. Meanwhile the hybrid mass transfer technology developed by the company has reached the

advanced level in the industry in both transfer efficiency and yield. Currently the Company has

completed the small-lot trial production of Micro LED chips and the small- and medium-lot trial

production of Mini LED chips. Furthermore the Company won the Second Prize of Guangdong

Science and Technology Progress Award by jointly completing the New-generation Intelligent Video

Business System and Industrialization the Third Prize of Anhui Science and Technology Progress

Award by jointly completing the Key Technology R&D and Industrialization of New Refrigerators

Based on Multi-field Coupling and the 2020 Shenzhen Patent Award for its LED-based

Multi-functional Control System.2. In the Reporting Period the Company perfected and promoted the traditional CE business by

"advocating high-end brands localize overseas business and utilize intelligent and diversified

manufacturing" and vigorously conducted quality projects. Additionally it closely followed market

demands quickly optimized and upgraded products and launched APHAEA OLED V5 Series TVs

and the K Freshness Series Long Freshness-keeping Refrigerator.Konka Group Co. Ltd.3. The Company integrated industry with cities and homes strove to expand new sci-tech parks give

full play to the industrial cluster effect and drive regional upgrading in accordance with the

development strategy of "technology + industry + industrial park" based on the development of the

sci-tech industry. In the Reporting Period the Company successively launched the construction

projects of the Konka intelligent household appliance headquarters and the Central China

headquarters in Xi'an and Changsha and promoted and completed relevant sci-tech parks in

conformity with high requirements standards and quality. In the meantime it kept strengthening

investment attraction project construction post-lending management and park operations gradually

formed its park brands and formulated park operation standards with its own characteristics.4. In the Reporting Period the Company maintained a growth momentum in the business proved by

its YoY increase of 24.46% in operating revenue.Year-on-year changes in key financial data:

Unit: RMB

H1 2021 H1 2020 Change (%) Main reason for change

Operating revenue 21810161873.08 17524183896.74 24.46% As the domestic pandemic

was gradually under

Cost of sales

control and the industry

20817175713.78 16268993432.88 27.96% rebounded business was

gradually back to normal.During the reporting

period the company

Selling expense 667662036.47 969224381.98 -31.11% strictly controlled the

publicity fee and channel

fee

Administrative expense 359053667.07 440915780.44 -18.57%

Finance costs 459415782.71 387040866.75 18.70%

Income tax expense 84263268.37 73425522.47 14.76%

R&D investments 284663467.26 258049586.29 10.31%

Net cash generated from/used in

-1284761222.03 -1076366927.48 -19.36%

operating activities

Net cash generated from/used in Increase in cash payments

-1785387038.28 -142693107.96 -1151.21%

investing activities for investments

Net cash generated from/used in Decrease in debt

3939565440.45 1256220908.63 213.60%

financing activities repayments

mainly due to the net

Net increase in cash and cash

861929112.82 44203902.08 1849.89% inflow of cash flow from

equivalents

financing activities

The Board of Directors

Konka Group Co. Ltd.27 August 2021