Full Text of 2025 Annual Report of Konka Group Co. Ltd.Konka Group Co. Ltd.2025 Annual Report
April 2026
1Full Text of 2025 Annual Report of Konka Group Co. Ltd.
2025 Annual Report
Section I Important Notes Table of Contents and
Interpretations
The Board of Directors directors and senior executives of the Company guarantee
the authenticity accuracy and completeness of the contents of the annual report
and bear individual and joint legal liabilities for any false records misleading
statements or major omissions.WU Jianjun Person in Charge of the Company YU Huiliang Chief Financial Officer
and WANG Linhu Head of Accounting Agency (Chief Accountant) declare that they
guarantee the authenticity accuracy and completeness of the financial report in the
Annual Report.All the Company's directors have attended the Board meeting for the review of this
Report.ShineWing Certified Public Accountants (Special General Partnership) issued an
unqualified auditor's report with a paragraph on material uncertainty related to
going concern for the Company's 2025 annual financial report which was clarified
by the Board of Directors and the Audit Committee. Investors are advised to pay
attention to such content.ShineWing Certified Public Accountants (Special General Partnership) issued an
unqualified Internal Control Audit Report with an emphasis of matter paragraph for
the Company which was clarified by the Board of Directors and the Audit
Committee. Investors are advised to pay attention to such content.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 plans not to distribute cash dividends issue bonus shares or
convert capital reserve into share capital.As of the end of the Reporting Period the parent company had unappropriated
losses.As of the end of the Reporting Period the parent company had unappropriated
losses and the profit available for distribution to shareholders was negative. In
accordance with the No. 3 Guideline for the Supervision of Listed Companies - Cash
2Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Dividend Distribution of Listed Companies the Guidelines No. 1 for Self-regulation
of Main Board Listed Companies - Standardized Operation and other relevant
regulations the Company fails to meet the preconditions for implementing cash
dividends yet. Investors are kindly reminded to pay attention to investment-related
risks.
3Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Table of Contents
Section I Important Notes Table of Contents and In... 2
Section II Company Profile and Financial Indicator... 7
Section III Discussion and Analysis of the Managem.. 15
Section IV Corporate Governance Environment and So.. 40
Section V Important Matters ........................ 74
Section VI. Share Changes and Shareholders ........ 120
Section VII Bonds ................................ 1288
Section VIII Financial Report ..................... 135
4Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Documents Available for Reference
1. The financial statements with the signatures and seals of the Company’s legal
representative Chief Financial Officer and head of the accounting agency;
2. The original copy of the Independent Auditor’s Report with the seal of the CPA firm and
the signatures & seals of the certified public accountants;
3. The originals of all the Company’s documents and announcements disclosed to the
public in the Reporting Period;
4. This Report and its summary with the signature of the Company’s legal representative
and the seal of the Company;
5. Other related information.
5Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Definitions
Items Refers to Content
Company the Company the Group Refers to Konka Group Co. Ltd.China Resources Refers to China Resources Company Limited
OCT Group Refers to Overseas Chinese Town Holdings Company
Panshi Runchuang Refers to Panshi Runchuang (Shenzhen) InformationManagement Co. Ltd.CR Inc. Refers to China Resources Co. Ltd.SASAC Refers to State-owned Assets Supervision andAdministration Commission of the State Council
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
CSRC Shenzhen Bureau Refers to Shenzhen Bureau of the China SecuritiesRegulatory Commission
RMB RMB 10000 and RMB 100 million Refers to Renminbi yuan Renminbi ten thousand yuanRenminbi hundred million yuan
6Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Section II Company Profile and Financial Indicators
I. Corporate Information
Stock name Konka Group-A KonkaGroup-B Stock code 000016 200016
Previous stock name (if any) None
Stock exchange for stock
listing Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbreviation in Chinese 康佳集团
Company name in foreign
language (if any) KONKA GROUP CO. LTD.Abbreviation in foreign
language (if any) KONKA GROUP
Legal representative Wu Jianjun
Registered address Floors 15-24 Konka R&D Building No. 28 Keji South 12th Road Science andTechnology Park Yuehai Street Nanshan District Shenzhen 518057
Postal code of the registered
address 518057
On July 1 2015 due to the relocation of the company headquarters the registered
Past changes of registered address changed from OCT Nanshan District Shenzhen to Floors 15-24 Konka
address R&D Building No. 28 Keji South 12th Road Science and Technology Park
Yuehai Street Nanshan District Shenzhen
Office Address Floors 15-24 Konka R&D Building No. 28 Keji South 12th Road Science andTechnology Park Yuehai Street Nanshan District Shenzhen 518057
Postal code of the office
address 518057
Company website www.konka.com
E-mail szkonka@konka.com
II. Contact information
Board Secretary Securities Affairs Representative
Name Yu Huiliang Miao Leiqiang
Konka R&D Building No. 28 Keji South 12th Konka R&D Building No. 28 Keji South 12th
Address Road Science and Technology Park Yuehai Road Science and Technology Park Yuehai
Street Nanshan District Shenzhen 518057 Street Nanshan District Shenzhen 518057
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
E-mail szkonka@konka.com szkonka@konka.com
III. Media for Information Disclosure and Place where This Report is Lodged
Stock exchange website where this Report is
disclosed Shenzhen Stock Exchange (https://www.szse.cn)
Media and website where this Report is
disclosed Cninfo (http://www.cninfo.com.cn)
Place where this Report is lodged Konka R&D Building No. 28 Keji South 12th Road Science andTechnology Park Yuehai Street Nanshan District Shenzhen 518057
7Full Text of 2025 Annual Report of Konka Group Co. Ltd.
IV. Changes to Company Registration
Unified Social Credit Code 914403006188155783
Changes to principal activities of the
Company after listing (if any) None
To advance the professional integration among central SOEs and
optimize resource allocation in July 2025 the Company’s former
controlling shareholder OCT Group and its persons acting in concert
Every change of controlling shareholder since transferred all equity interests in the Company held by them to
incorporation (if any) Panshi Runchuang and Commotra Company Limited wholly ownedsubsidiaries under China Resources by way of free transfer. Panshi
Runchuang has become the controlling shareholder of the Company
the de facto controller of the Company changed to China Resources
and the ultimate de facto controller remains the SASAC.V. Other Related Information
The independent audit firm hired by the Company:
Name of audit firm ShineWing Certified Public Accountants (Special GeneralPartnership)
Office address 9/F Block A Fuhua Mansion No. 8 Chaoyangmen North StreetDongcheng District Beijing China
Signatory Accountants Gu Fanqiu Liu Lihong
The independent sponsor hired by the Company to exercise constant supervision over the
Company in the Reporting Period
□ Applicable √ Not applicable
Financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period
□ Applicable √ Not applicable
VI. Key Accounting Information and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated data in the table below
√ Yes □ No
8Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Reasons for retrospective adjustment or restatement
Correction of accounting errors
2024 YoY change 2023
2025
Before adjustment Restated Restated Before adjustment Restated
Operating revenue (RMB) 9835474916.53 11114763969.59 11114763969.59 -11.51% 17849331429.24 17849331429.24
Net profit attributable to the listed -12582399856.80 -3295588668.77 -3725557221.78 -237.73% -2163790053.17 -2258279326.65
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -10380838803.56 -3205504053.63 -3534999165.55 -193.66% -2914445076.42 -2938068349.90
non-recurring gains and losses
(RMB)
Net cash generated from/used in -1611000121.19 173888842.99 173888842.99 -1026.45% 553101277.90 553101277.90
operating activities (RMB)
Basic earnings per share -5.2254 -1.3686 -1.5472 -237.73% -0.8986 -0.9378
(RMB/share)
Diluted earnings per share -5.2254 -1.3686 -1.5472 -237.73% -0.8986 -0.9378
(RMB/share)
Weighted average return on equity Not applicable -82.56% -108.62% Not applicable -32.58% -35.62%
End of 2024 YoY change End of 2023
End of 2025
Before adjustment Restated Restated Before adjustment Restated
Total assets (RMB) 22350904261.25 30412763900.34 31462204064.56 -28.96% 35824818212.66 36851973534.48
Net assets attributable to the listed -6083071689.95 2369668838.10 1592467508.28 -481.99% 5644401184.65 5297168407.84
company’s shareholders (RMB)
9Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Reasons for changes in accounting policies and details of corrections of accounting errors
After self-examination due to the failure to consider special provisions for some equity
transfer projects insufficient provision for patent fees in previous years and bad debt
provisions for individual customers' accounts receivable the company has made
corrections to relevant error items involving the consolidated balance sheet consolidated
income statement consolidated statement of changes in owner's equity accounts for the
years 2022 to 2024 the first quarter half year and third quarter of 2025 as well as the
parent company's balance sheet parent company's income statement and parent
company's statement of changes in owner's equity accounts. The specific situation is as
follows:
1. When introducing strategic investors for Chongqing ypfun Technology Co. Ltd.
(hereinafter referred to as "ypfun") in 2021 the Company signed supplementary
agreements with 11 investors promising that if ypfun failed to complete its IPO before the
agreed time the Company would be obliged to repurchase their transferred equity at the
original transfer price and pay interest. The above-mentioned agreed matters did not go
through the approval procedures of the Company's Board of Directors and the General
Meeting and were not subjected to appropriate accounting treatment and information
disclosure. Based on this contractual obligation and the facts currently known the
Company's management recognized this obligation as a financial liability and corrected
previous accounting errors.
2. When transferring the equity of Anhui Kaikai Vision E-commerce Co. Ltd. (hereinafter
referred to as "Kaikai Vision") in previous years the Company entered into an agreement
with Alibaba (China) Network Technology Co. Ltd. (hereinafter referred to as "Alibaba")
under which the Company undertook to repurchase the transferred equity at the original
transfer price and pay interest if Kaikai Vision failed to complete its IPO before the agreed
time. Since Kaikai Vision failed to complete its IPO within the agreed period Alibaba filed a
lawsuit against the Company in 2024 and the Company paid the equity repurchase
amount and interest to Alibaba in 2025. The above-mentioned agreed matters did not go
through the Company's internal approval procedures and were not subjected to
appropriate accounting treatment. Based on this contractual obligation and the facts
currently known the Company's management recognized this obligation as a financial
liability and corrected previous accounting errors.
3. The color TV products operated and sold by the Company adopt essential patents
compliant with industry standards. Through self-inspection the Company identified that
patent fees were not fully accrued in prior periods. The Company shall accrue such patent
royalties retroactively for previous years and make corrections for prior-period errors.
10Full Text of 2025 Annual Report of Konka Group Co. Ltd.
4. Accounts receivable of specific customers of the Company were overdue and
uncollected. After careful verification the overdue and uncollected accounts receivable of
such customers were caused by the inability of related underlying customers to repay.Individual bad debt provision should be made in the year when the related underlying
customers lose their repayment ability and previous accounting errors should be corrected.Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after non-recurring gains and losses was negative for the last
three accounting years and the latest independent auditor’s report indicated that there
was uncertainty about the Company’s ability to continue as a going concern.√ Yes □ No
The lower of the Company's audited total profit net profit and net profit after deducting
non-recurring gains and losses during the Reporting Period was negative
√ Yes □ No
Item 2025 2024 Remarks
Operating revenue (RMB) 9835474916.53 11114763969.59
Business income unrelated 570664051.62 602398241.79 Business income unrelated
to core business to core business
Income from waste sales
water and electricity fees
Deductions from operating 570664051.62 602398241.79 rental income material
revenue (RMB) sales income and other
income unrelated to the
main business
Operating revenue after 9264810864.91 10512365727.80
deductions (RMB)
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and
foreign accounting standards
1. Differences in net profit and net assets in financial reports disclosed in
accordance with international accounting standards and Chinese accounting
standards
□ Applicable √ Not applicable
During the Reporting Period there were no differences in net profit and net assets in the
financial reports disclosed by the Company in accordance with both International
Accounting Standards and Chinese accounting standards.
2. Differences in net profit and net assets in financial reports disclosed in
accordance with foreign accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
During the Reporting Period there were no differences in net profit and net assets in the
11Full Text of 2025 Annual Report of Konka Group Co. Ltd.
financial reports disclosed by the Company in accordance with both Overseas Accounting
Standards and Chinese accounting standards.VIII. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating Revenue 2544411519.38 2703096329.89 2431462871.94 2156504195.32
Net profit attributable to the listed 94810677.19 -478138696.62 -598192530.33 -
company’s shareholders 11600879307.04
Net profit attributable to the listed
company’s shareholders before -440636189.54 -586865935.72 -494190886.44 -8859145791.86
non-recurring gains and losses
Net cash generated from/used in -421786013.66 -253837417.27 -410704971.11 -524671719.15
operating activities
Whether there are significant differences between the above financial indicators or the
sum and the relevant financial indicators in the company's disclosed quarterly reports and
semi-annual reports
□ Yes √ No
IX. Non-recurring Profits or Losses
√ Applicable □ Not Applicable
Unit: RMB
Item Amount in 2025 Amount in 2024 Amount in 2023 Description
Gains/losses on disposal of non-current assets
(including the portion offset for provisions for asset 21769444.15 100956248.61 198866019.16
impairment)
Government grants included in the current
gains/losses (except for those that are closely related
to the Company's normal business operations
comply with national policies and regulations are -560729053.82 105918680.20 264798178.16
enjoyed according to determined standards and
have a sustained impact on the Company's
gains/losses)
Gains/losses on fair value changes in financial assets
and liabilities held by a non-financial enterprise as
well as on disposal of financial assets and liabilities -455947543.58 -366040020.57 -88236451.43
(exclusive of the effective portion of hedges that arise
in the Company’s ordinary course of business)
Funds occupation fee charged to non-financial
enterprises included in current gains/losses
Gains/losses on entrusting others with investments or
asset management
Gains/losses on loan entrustment 86761707.56 92549311.40 118808006.95
Losses on assets resulted from force majeure factors
such as natural disasters
Reversed portions of impairment allowances for 13649084.68 38227600.55 3055800.22
receivables which are tested individually for
12Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Item Amount in 2025 Amount in 2024 Amount in 2023 Description
impairment
Gains arising from business combination when the
investment cost is less than the recognized fair value
of net assets of the investee
Current net gains/losses of subsidiaries acquired in
business combination under the same control from
period-beginning to combination date
Gains/losses on non-monetary asset swap
Gains/losses on debt restructuring -459737.22
Non-recurring expenses incurred by the enterprise as
a result of the discontinuation of a related operating
activity such as expenses for relocating employees
One-time impact on current gains/losses due to
adjustments in tax accounting and other laws and
regulations
One-time recognition of share-based payment
expense due to cancellation and modification of
equity incentive plans
Cash-settled share-based payments gains/losses
arising from changes in the fair value of employee
compensation payable after the date of exercisability
Gains/losses on change in fair value of investment
property subject to follow-up measurement at fair
value method
Gains from transactions at significantly unfair prices
Gains/losses arising from contingencies unrelated to
the normal operation of the Company's business
Custodian fees earned from entrusted operation
Non-operating revenue and expense other than the -433788481.56
above -114510494.06 -64433346.64
Other gains/losses that meet the definition of non- -1069326647.31 -133964588.12
recurring gains/losses 476827980.43
Less: Income tax effects 1029921.23 -56791821.41 215809992.39
Minority equity effects (after tax) -197080357.87 -29973121.57 14087171.21
Total -2201561053.24 -190558056.23 679789023.25 --
Particulars about other gains/losses that meet the definition of non-recurring gains/losses:
√ Applicable □ Not Applicable
Item Amount involved(RMB) Reason
During the Reporting Period the Company changed the accounting
Trading financial 655666680.89 method for its equity interest in Wuhan Tianyuan Group Co. Ltd. from
assets long-term equity investment (equity method) to financial assets held for
trading resulting in non-recurring gains/losses.Excessive losses During the Reporting Period the amount of losses arising from the-1560621492.59
of subsidiaries Company's receivables from subsidiaries with excessive losses was
recognized as "Net profit attributable to owners of the parent company"
13Full Text of 2025 Annual Report of Konka Group Co. Ltd.
resulting in non-recurring gains/losses.Interest on equity
repurchase -164371835.61 Interest accrued on equity repurchase amount by the Company during the
amount Reporting Period
Explanation on the definition of non-recurring gains/losses items as recurrent gains/losses
items in the Explanatory Announcement No. 1 on Information Disclosure of Companies
Publicly Issuing Securities - Non-recurring Gains/Losses
√ Applicable □ Not Applicable
Item Amount involved(RMB) Reason
Software tax
rebates Government grants closely related to the normal operation of the Company's
VAT credits 16548508.82 business which comply with national policies and are received continuously
and based on a certain standard quota or quantitative amount
deductions
14Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Section III Discussion and Analysis of the Management
I. Principal Activities of the Company during the Reporting Period
(I) Consumer Electronics Business
The company's consumer electronics business mainly consists of color TV business and
white goods business as follows:
1. Color TV Business
The Company's color TV business serves the global market mainly including domestic
and export businesses. The domestic color TV business mainly focuses on two business
models: B2B (an abbreviation for Business-to-Business namely business-to-business)
and B2C (an abbreviation for Business-to-Consumer namely business-to-consumer).Branches business departments and after-sales maintenance service outlets have been
established across the country. The operating profit is derived from the price difference
between the cost of color TV products and their selling prices. As for selling its color TVs
abroad the Company mainly relies on B2B. Its color TVs are sold to Asia Pacific Middle
East Central & South America East Europe etc. and operating profit is also derived
from the differences between the costs and the selling prices of its color TVs.
2. White Goods Business
The Company's white goods business mainly deals in products such as refrigerators
washing machines air conditioners freezers and dishwashers under B2B and B2C
models primarily targeting the global market and generating profit from product price
differences. By acquiring the "Frestec" brand the Company has built a "KONKA + Frestec"
operation strategy; by acquiring the Chinese factory of Beko (front-loading washing
machine) the Company has made up for the technical shortcomings in front-loading
washing machine production; the Company also built a new Xi'an Smart Home Appliance
Industrial Park to explore and develop the dishwasher business. The Company by now
has formed a "KONKA + Frestec" operation pattern for its white goods business with the
capability of production and operation of refrigerators washing machines freezers air
conditioners and kitchen appliances.(II) Semiconductor Business
The Company by now has established a presence in the semiconductor optoelectronics
and memory sectors the former focusing on three major segments - Micro LED and Mini
LED chips mass transfer and display. After industrialization the operating profit is derived
from the price difference between product cost and selling price; the memory business
primarily focuses on the packaging and testing segment mainly processing steps such as
wafer dicing packaging and testing.(III) PCB Business
15Full Text of 2025 Annual Report of Konka Group Co. Ltd.
The Company's PCB business primarily focuses on metal substrate products thick copper
products and high multi-layer products. Operating under a B2B business model the
Company targets four major electronics fields namely new energy automotive electronics
communications & data centers and new consumer electronics. Profitability is
achieved through the spread between product costs and sales prices.II. Industry Overview for the Reporting Period
At present the Company's main businesses include consumer electronics and
semiconductor businesses. The relevant industries are described below:
(I) Consumer electronics industry
In the color TV industry high-end transformation has become a leading trend. According to
statistics from AVC the retail volume of China's color TV market in 2025 reached 27.63
million sets a year-on-year decrease of 10.4% and the retail sales amounted to RMB
117.3 billion a year-on-year decrease of 7.3%. Driven by consumption upgrading and
technological iteration China's color TV market is shifting from "volume expansion" to
"value upgrading" with increasing momentum of large screen miniaturization high refresh
rate and ecological conservation. In terms of large-size products the average size of color
TVs in China continued to grow in 2025. AVC's statistics show that the retail volume of 75-
inch color TVs in China reached 24% in 2025. In terms of display technology Mini LED
display technology is growing rapidly. AVC statistics indicate that in 2025 the retail
volume of Mini LED TVs reached 31.8% and the retail sales reached 55.4% showing a
significant leading position. High refresh rate as one of the key indicators for enhancing
the two core home entertainment scenarios of movie-watching and gaming is increasingly
favored by the market. According to AVC the penetration rate of products with 120HZ and
above in China's color TV market reached 68.8% in 2025 an increase of 10.1% from 2024.In terms of green energy conservation guided by the national trade-in policy green energy
conservation has become one of the key trends and core directions for the development of
the color TV industry. AVC statistics show that the retail volume of Grade 1 energy-
efficiency products in the color TV market was 64.2% in 2025 an increase of 44.3% from
2024.
In the white goods industry in 2025 boosted by the trade-in policy and product structure
upgrading the white goods market highlighted the characteristics of category
differentiation and accelerated orientation towards high end a continued trend of product
upgrading from 2024. In terms of refrigerators AVC statistics show that China's
refrigerator market experienced a decline in both volume and value in 2025 with an omni-
channel retail volume of 36.82 million sets a year-on-year decrease of 8.6% and retail
sales of RMB 127.1 billion a year-on-year decrease of 11.5%. In terms of washing
16Full Text of 2025 Annual Report of Konka Group Co. Ltd.
machines AVC statistics show that competitive pressure in the domestic washing machine
market intensified in 2025 with an omni-channel retail volume of 41.66 million sets a year-
on-year decrease of 3.2%; and retail sales of RMB 96.3 billion a year-on-year decrease of
4.6%. In terms of household air conditioners statistics from AVC show that in 2025 China
recorded a total production of 191.59 million sets a year-on-year decrease of 2.3% and a
total sales of 188.07 million sets a year-on-year decrease of 1.5%.(II) Semiconductor industry
The semiconductor industry is a strategic and fundamental industry that supports the
digital economy transformation in line with national security strategy. Driven by emerging
demands such as AI automotive electronics and data centers the industry has entered a
structural recovery cycle. Semiconductor memory remains the largest sub-sector.Micro LED plays a leading role for next-generation display technology with industry chain
covering chip manufacturing and mass transfer (upstream) panel manufacturing
(midstream) and end-product applications (downstream). With continuous breakthroughs
in technological bottlenecks its application scenarios are expanding to fields such as
automotive commercial and high-end consumer electronics offering vast market potential.III. Core Competitiveness Analysis
The Company's core competitiveness lies in its manufacturing ability R&D ability
brand marketing network and human resources. In terms of manufacturing capacity the
Company completed intelligent upgrading and transformation of its production and
manufacturing bases in Anhui Shaanxi Henan and other locations. The dishwasher
production line at the Shaanxi Konka factory has been fully put into operation
complementing the Company's dishwasher product capabilities. In terms of R&D the
Company has established a three-tiered R&D system of "Research Institute + Research
Center + Basic Research" comprehensive AIoT laboratories and 5G ultra-high-definition
laboratories in collaboration with several universities and research institutions and a
technology research alliance that matches its industrial layout possessing an R&D team of
over 1000 experts. 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 and holds a certain brand awareness and reputation in the consumer group. In
terms of marketing channels the Company innovates channel reform cooperates online
and offline for win-win results and strives for development at home and abroad. As for
offline channels the Company has expanded its marketing and service network across
China; through online channels the Company has settled in e-commerce platforms such
as Tmall JD.com Douyin and Pinduoduo to develop its live-streaming e-commerce
17Full Text of 2025 Annual Report of Konka Group Co. Ltd.
business and seek new growth drivers for its business growth; in overseas channels the
Company's business covers Latin America Europe Asia-Pacific and other countries and
regions and has 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.IV. Core Business Analysis
1. Overview
In 2025 through professional integration the Company continued optimizing its business
structure while steadily promoting cost reduction and efficiency improvement laying a
solid foundation for the Company's future development.In 2025 the Company achieved operating revenue of RMB 98.35 hundred million down
11.51% YoY and net profit attributable to shareholders of the listed company of RMB -
125.82 hundred million with a YoY decrease of 237.73%; cash flow from operating
activities was RMB -16.11 hundred million down 1026% year-on-year.
(1) Reasons for performance changes in 2025
* In 2025 the Company's consumer electronics business witnessed a decline in
operating revenue due to insufficient product competitiveness. Despite the decrease of
overall expenses year-on-year the gross profit still failed to cover the expenses leaving
the consumer electronics business in a loss-making state.* In 2025 in accordance with the Accounting Standards for Business Enterprises the
company made provision for impairment losses on accounts receivable other receivables
inventories investment real estate fixed assets intangible assets construction in
progress goodwill long-term equity investments other current assets other non-current
assets and other items and recognized certain contingent liabilities. As a result the
company incurred a net loss attributable to shareholders of listed companies in 2025 and
its net assets attributable to shareholders of listed companies turned negative.
(2) Key tasks for 2025
In 2025 against the backdrop of professional integration the Company further clarified its
strategic goals and paths for achievement with focus on improving the operations of its
main businesses under the following work progress:
* Professional management of R&D production supply and sales
In terms of R&D the Company set up a Research Institute responsible for
coordinating Konka's strategic R&D strategies and building a three-tiered R&D
system.
18Full Text of 2025 Annual Report of Konka Group Co. Ltd.
For the supply chain the Company gave full play to the role of the Supply Chain
Management Department in coordinating the procurement of bulk and unified raw
materials thus promoting cost reduction in the supply chain.As for marketing the Company established China Marketing Headquarters and
International Marketing Business Division to steadily advance loss reduction and
conversion into profits in the domestic sales businesses while building the overseas brand
image and transforming the marketing pattern of branded products through integration and
collaboration.On the production side the Company clarified the orientation for optimizing and integrating
production bases and planned to launch intelligent upgrading for some factories for
qualitative improvement in the Company's manufacturing capabilities in line with the
industry benchmarks.* Further collaboration for market growth
Based on the Company's business characteristics and CR Group's industrial resources a
cooperation plan covering 5 major areas was formulated to deepen business synergy with
subsidiaries of CR Group. The "China Resources Fuzhou Gas Store & Konka Quality
Base" officially opened at the end of 2025 while other cooperation plans are under
progressive implementation.* Loss reduction and efficiency improvement in existing businesses
In terms of business integration the color TV business and the white goods business are
being integrated in some regions. Such measures such as marketing channels resources
and workforce reusing were taken to drive the Company's consumer electronics
businesses into a collaborative pattern with an incremental performance of approximately
RMB 150 million for the year.In terms of service integration the Company completed a joint tender for black and white
goods express logistics reducing the overall express logistics costs for both categories by
23.37%; and constantly enhancing the reuse of service providers for the color and white
goods businesses as well as for the Konka and Frestec brands.In manufacturing efficiency enhancement benchmarking against industry leaders all
manufacturing bases steadily improved production efficiency with manufacturing cost per
unit meeting the target. In the quality products total sales exceeded 750000 sets
generating revenue of over RMB 1 billion. Ningbo Konka Hanrui Electrical Appliance Co.Ltd. surpassed its sales target for the 1 HP inverter series air conditioners while Jiangsu
Konka Smart Appliance Co. Ltd. leveraged its 530 Platform to create differentiated
products completing its product matrix.
19Full Text of 2025 Annual Report of Konka Group Co. Ltd.
On the other hand the Company clarified its strategy for improving the structure of the
color TV business focusing resources on its own brand business to further advance the
brand towards high-end positioning. The Company deepened its cooperation with key
customers in the white goods business promoting in-depth exchanges in areas such as
product technology design and key indicators.* Corporate transformation and development through organizational optimization
The Company comprehensively advanced organizational restructuring efforts optimized
its headquarters functions and strengthened the professional capabilities of the corporate
headquarters team. The Company restructured its business units to adapt to industry
characteristics scaled back non-core businesses and established 4 secondary business
divisions to for the business development. A mechanism of job competition was adopted to
further revitalize the organizational vitality and to establish an organizational structure that
aligns with market principles and business management needs.
2. Revenue and Cost
(1) Breakdown of operating revenue
Unit: RMB
20252024
As % of As % of YoY
Amount operating Amount operating change (%)
revenue revenue
Total operating 9835474916.53 100% 11114763969.59 100% -11.51%revenue
By industry
Consumer
electronics 8918039059.06 90.67% 10136942898.84 91.20% -12.02%
industry
Semiconductor 162222125.34 1.65% -4.69%
and memory chip 170202408.61 1.53%
Other industries 755213732.13 7.68% 807618662.14 7.27% -6.49%
By product category
Color TV 4192163402.41 42.62% 5027758205.02 45.23% -16.62%
White goods 3815259215.10 38.79%
business 4127243310.93 37.13%
-7.56%
Semiconductor
and memory chip 162222125.34 1.65% 170202408.61 1.53% -4.69%
business
PCB business 529852068.40 5.39% 480868974.92 4.33% 10.19%
Other 1135978105.28 11.55% 1308691070.11 11.77% -13.20%
By region
Domestic sales 6753418875.25 68.66% 7903700862.49 71.11% -14.55%
Overseas sales 3082056041.28 31.34% 3211063107.10 28.89% -4.02%
By sales model
20Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Direct sales 5784213234.28 58.81% 5058917673.95 45.52% 14.34%
Distribution 4051261682.25 41.19% 6055846295.64 54.48% -33.10%
(2) Industries products regions or sales models that account for over 10% of the
Company's operating revenue or operating profit
√ Applicable □ Not Applicable
Unit: RMB
Operating Gross YoY change YoY change YoY change
Revenue Cost of sales profit in operating in operating in gross profitmargin revenue cost margin
By industry
Consumer
electronics 8918039059.06 8689090022.95 2.57% -12.02% -12.53% 0.57%
industry
By product category
Color TV 4192163402.41 4280594033.28 -2.11% -16.62% -18.29% 2.09%
White goods 3815259215.10 3605987282.66 5.49% -7.56% -6.02% -1.54%
business
By region
Domestic 6753418875.25 6471030228.87 4.18% -14.55% -16.24% 1.93%
sales
Overseas 3082056041.28 2959687689.33 3.97% -4.02% -5.63% 1.64%
sales
By sales model
Direct sales 5784213234.28 5485914211.49 5.16% 14.34% 14.01% 0.28%
Distribution 4051261682.25 3944803706.71 2.63% -33.10% -34.80% 2.53%
Where the statistical scope of the company's core business data was adjusted during the
Reporting Period the core business data for the most recent year restated according to
the end-of-Reporting Period scope
□ Applicable √ Not applicable
(3) Whether the revenue from physical sales is higher than the revenue from the
rendering of services
√ Yes □ No
Industry
classification Item Unit 2025 2024 YoY change (%)
Consumer Sales volume (10000 units) 896 912 -1.75%
electronics Output (10000 units) 869 912 -4.71%
industry Inventory (10000 units) 54 81 -33.33%
Explanation for reasons of over 30% YoY change in the relevant data
□ Applicable √ Not applicable
21Full Text of 2025 Annual Report of Konka Group Co. Ltd.
(4) Execution progress of major signed sales and purchase contracts in the
Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of cost of sales
Product category
Unit: RMB
20252024
Product YoY
category Item
As % of change
Amount total cost Amount As % of total
of sales cost of sales
(%)
Color TVs Color TVs 4280594033.28 45.39% 5238743506.77 48.23% -18.29%
White goods White goods 3605987282.66 38.24% 3837066870.14 35.33% -6.02%
Semiconducto Semiconducto
r and memory r and memory 176738680.35 1.87% 256853882.82 2.36% -31.19%
chip business chip business
PCB business PCB business 484651274.02 5.14% 428530129.53 3.95% 13.10%
Others Others 882746647.89 9.36% 1100629601.93 10.13% -19.80%
Description
Cost of sales changed accordingly with operating revenue
(6) Changes in the scope of consolidated financial statements for the Reporting
Period
√ Yes □ No
Registered Shareholding
Name of subsidiary capital (RMB percentage at the Date of
10000) end of the Reporting change
Reason for change
Period (%)
Kangrong Jiayuan Technology
(Zhejiang) Co. Ltd. (formerly known as:
Konka Ronghe Industry Technology 5000 10% 2025-05-09 Equity transfer
(Zhejiang) Co. Ltd.)
(7) Major changes to the business scope or product or service range in the
reporting period
□ Applicable √ Not applicable
(8) Major customers and suppliers
Major customers
Total sales to top five customers (RMB) 3212864972.70
Total sales to top five customers as % of total sales of the
Reporting Period (%) 32.66%
Total sales to related parties among top five customers
as % of total sales of the Reporting Period (%) 0.00%
22Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Top five customers
Sales revenue contributed
No. Customer for the Reporting Period As % of total sales revenue
(RMB) (%)
1 Beijing Jingdong CenturyTrading Co. Ltd. 1238996252.74 12.60%
2 Beijing Xiaomi ElectronicsCo. Ltd. 1132246021.52 11.51%
3 Chuzhou HanshangElectric Appliance Co. Ltd. 420246250.54 4.27%
4 HUIHAI ELECTRONICSCO. LIMITED 221440843.82 2.25%
Hong Kong Industry &
5 Finance Development Co.
Ltd. 199935604.08 2.03%
Total -- 3212864972.70 32.66%
Other information about major customers
√ Applicable □ Not Applicable
None of the top five customers were related parties of the Company. None of the
Company’s directors senior executives core technicians shareholders with 5% or more
shares de facto controller or any other related parties held equity interests in the major
customers directly or indirectly.Major suppliers
Total purchases from top five suppliers (RMB) 3020537484.75
Total purchases from top five suppliers as % of total
purchases of the Reporting Period (%) 35.63%
Total purchases from related parties among top five
suppliers as % of total purchases of the Reporting Period 0.00%
(%)
Top five suppliers
No. Supplier name Purchase amount (RMB) As % of total purchases(%)
1 BOE Technology GroupCo. Ltd. 1811149152.09 21.37%
Xianyang Caihong
2 Optoelectronics
Technology Co. Ltd. 545041350.94 6.43%
3 Anhui DemullerTechnology Co. Ltd. 305922976.92 3.61%
4 Shenzhen DingshengOptoelectronics Co. Ltd. 198648102.46 2.34%
5 HKC Co. Ltd. 159775902.34 1.88%
Total -- 3020537484.75 35.63%
Other information about major suppliers
√ Applicable □ Not Applicable
23Full Text of 2025 Annual Report of Konka Group Co. Ltd.
None of the top five suppliers were related parties of the Company. None of the
Company’s directors senior executives core technicians shareholders with 5% or more
shares de facto controller or any other related parties held equity interests in the major
suppliers directly or indirectly.During the Reporting Period the Company's trading business revenue accounted for more
than 10% of its operating revenue.□ Applicable √ Not applicable
3. Expense
Unit: RMB
2025 2024 YoY change (%) Reason for anysignificant change
Selling expenses 647219068.47 774298036.87 -16.41%
Administrative 564170838.00 651947833.46 -13.46%
expenses
Finance costs 804216933.89 714987086.24 12.48%
R&D expense 386105836.96 416405840.34 -7.28%
4. R&D Investment
√ Applicable □ Not Applicable
Names of main Project purpose Project progress Objectives to be
Expected impact on
R&D projects achieved the company's futuredevelopment
To build the
integrated
management To complete the
platform of AI large integration and
language model access of general To enhance the
(LLM) achieve rapid and vertical LLMs in Company's
integration and The core technology multiple industry technological
Bai Xiao Large customized has been developed domains achieving competitiveness in AI
Language Model development of the and applied to independent and domain and
model across all products. controllable model complete the
domains and capabilities and full- forward-looking
enhance the stack in-house strategies of core
efficiency of rapid development of TV technologies.commercialization AI voice.and empowerment of
AI capabilities.To achieve
To provide rapid lightweight
creation and content configuration and To significantly
operation capabilities The agent R&D launch of the TV enhance the
Yi AI agent 3.0 for TV platform has been completed
agent backend; and Company's market
agents and create and applied in become the competitiveness and
differentiated and related products. industry's first technological
intelligent interactive manufacturer to innovation leadership
experience. support users in in the AI agent.creating personal
agents through voice
24Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Names of main Objectives to be Expected impact on
R&D projects Project purpose Project progress achieved the company's futuredevelopment
commands.To resolve core It is expected to
To develop RGB Mini algorithm bottlenecks strengthen the
LED backlight The prototype design and provide solid Company's core
RGB Mini LED algorithms core and technology technical support for technologies in the
Display System technologies for application have the industrial high-end display field
picture quality chips been completed. development of the and its influence in
and optical engines. Company's next- the high-precisiongeneration RGB and cutting-edge
backlight products. display market.To fill the gap in
mainstream market To stay on par with
with air-cooled first-tier market
Frestec 890 New large-capacity dual- brands at the starting It is expected to
Grade-1 Energy system high- The development line of high-end promote the sales of
Efficiency Dual- capacity-ratio and has been completed products advance Frestec's high-end
system Dual-cycle new Grade 1 energy and the product has product power products and
Flat-embedded efficiency products been launched onto construction and enhance the product
600L+ Cross Four- thus promoting sales the market. high-end structure and brand
door Product of mid-to-high-end transformation and image.products and to create incremental
enhancing the growth.product image.To fill the gap for the To adopt a large
Development of market of ultra-large The development drum diameter toincrease the It is expected toUltra-large Diameter diameter drums with has been completed enhance the overall
Drum Platforms for 6 low cost and and the product has container loading competitiveness of
8 10 and 12KG enhance the been launched onto capacity of the entire
Models Company's product the market. machine and
the Company's
enhance product products.competitiveness. competitiveness.To build the To become the
Company's industry leader in
countertop 8-place- energy efficiency for It is expected to
setting dishwasher countertop 8-place- significantly enhance
platform adopt a setting dishwashers the Company's
Countertop 8-Place- glass panel with a Prototype is under and achieve the product
Setting Dishwasher color touch screen to development. industry's highest competitivenessenhance user Grade 1 energy achieve Grade 1
experience achieve efficiency. Achieve a energy efficiency
industry leadership in good reputation and explore new
energy efficiency among users and markets.and improve product increase sales
competitiveness. revenue and profit.To drive the
To develop the MIP industrialization of It is expected to
(Micro LED in Micro LED chips; enrich the
MIP Mass Production package) process produce higher-end
Company's product
Validation Project and drive the
The yield is
increasing. COB display
types improve
industrialization of screens; and product
Chongqing Konka's Resolve industry competitiveness and
optoelectronic chips. bottlenecks and enhance the
achieve large-scale Company's brand
25Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Names of main Project purpose Project progress Objectives to be
Expected impact on
R&D projects achieved the company's futuredevelopment
mass production of image.MIP.To explore
application markets
such as high-end It is expected to
automotive To optimize the continuously
Thermoelectric electronics industrial The development Company's product enhance the
Separation Metal control and has been completed structure andand the product has increase sales Company'sSubstrate R&D computing power capabilities of
and Industrialization products increase been launched onto revenue and profit
the Company's the market. from high-tech
R&D order
products. acquisition andoperating profit and profitability.improve market
competitiveness.To make
breakthroughs in key To achieve
process technologies breakthroughs in key
Laser + for laser drilling and
process technologies It is expected to
electroplating via- Completed and such as laser drilling further enhance theElectroplating Via-
filling Copper filling copper started mass
and electroplating R&D capability
Substrate R&D substrates increase production.via-filling and and improve industry
the Company's increase sales position and
operating profit and revenue and profit influence.enhance market from high-tech
competitiveness. products.R&D Personnel
2025 2024 Change (%)
Number of R&D
personnel 1337 1422 -5.98%
R&D personnel as %
of total employees 11.09% 10.65% 0.44%
Educational background of R&D personnel
Bachelor 1242 1321 -5.98%
Master 89 96 -7.29%
Doctor 6 5 20.00%
Age structure of R&D personnel
Below 30 584 651 -10.29%
30-40532569-6.50%
Over 40 221 202 9.41%
Details about R&D investments
2025 2024 Change (%)
R&D investments 386105836.96 416405840.34 -7.28%
(RMB)
R&D investments 3.93% 3.75% 0.18%
as % of operating revenue
Capitalized R&D
investments (RMB) 0.00 0.00 0.00%
26Full Text of 2025 Annual Report of Konka Group Co. Ltd.
2025 2024 Change (%)
Capitalized R&D
investments as % of total 0.00% 0.00% 0.00%
R&D investments
Reason for any significant change in R&D personnel composition and the impact
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in
operating revenue
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and
rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2025 2024 YoY change (%)
Subtotal of cash generated from 9034146586.16 11193611750.42 -19.29%
operating activities
Subtotal of cash used in operating 10645146707.35 11019722907.43 -3.40%
activities
Net cash generated from/used in -1611000121.19 173888842.99 -1026.45%
operating activities
Subtotal of cash generated from 1591759139.28 725004698.10 119.55%
investing activities
Subtotal of cash used in investing 449279879.19 756209896.13 -40.59%
activities
Net cash generated from/used in 1142479260.09 -31205198.03 3761.18%
investing activities
Subtotal of cash generated from 22718681210.48 12647798297.72 79.63%
financing activities
Subtotal of cash outflows from 20015510139.99 15690719013.11 27.56%
financing activities
Net cash from financing activities 2703171070.49 -3042920715.39 188.83%
Net increase in cash and cash 2237292033.81 -2891606873.10 177.37%
equivalents
Explanation of the main influencing factors for significant YoY changes in relevant data
√ Applicable □ Not Applicable
Reasons for the change in net cash flow from operating activities: During the Reporting
Period the Company's sales collections decreased compared to the same period last year.Reasons for the change in net cash flow from investing activities: During the Reporting
Period the Company recovered investments by disposing of Chutian Dragon and Wuhan
Tianyuan stocks.
27Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Reasons for the change in net cash flow from financing activities: During the Reporting
Period the Company obtained financing inflows by issuing perpetual bonds.Reasons for any major difference between the net operating cash flow and the net profit
for the Reporting Period
□ Applicable √ Not applicable
V. Analysis of Non-Core Businesses
√ Applicable □ Not Applicable
Unit: RMB
Amount As % of totalprofit Explanation of forming reason Sustainable or not
Return on investment 277402566.69 -2.53% Not sustainable
Mainly due to changes in the
Gains/losses on -460420971.18 4.21% fair value of financial assets
changes in fair value and the increase in contingent Not sustainable
consideration
Mainly for the impairment of
accounts receivable
inventories investment
properties fixed assets
Asset impairments -7696783541.60 70.33% intangible assets construction Not sustainable
in progress long-term equity
investments other current
assets other non-current
assets etc.Mainly due to the increase in
Non-operating 23053295.76 -0.21% gains not directly related to the
revenue Company's daily operating Not sustainable
activities
Mainly due to the increase in
Non-operating 459512872.49 -4.20% losses not directly related to
expenses the Company's daily operating Not sustainable
activities
28Full Text of 2025 Annual Report of Konka Group Co. Ltd.
VI. Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of 2025 Beginning of 2025 Change in Reason
percentage for any
Amount As % of total As % of total significantassets Amount assets (%) change
Monetary funds 6313941885.05 28.25% 4115767247.73 13.08% 15.17%
Accounts 1086929 4.86% 1315222656.92 4.18% 0.68%
receivable 012.15
Contract assets 1892306.30 0.01% 2630508.60 0.01% 0.00%
Inventories 1662246630.58 7.44% 2694648186.93 8.56% -1.12%
Investment 8660514
75.13 3.87% 1650843239.51 5.25% -1.38%properties
Long-term equity 2026038
156.99 9.06% 5921501427.49 18.82% -9.76%investments
Fixed assets 4405958959.37 19.71% 5005836928.31 15.91% 3.80%
Construction in 5163374
81.93 2.31% 873042499.04 2.77% -0.46%progress
Right-of-Use 1300765
44.83 0.58% 178185679.35 0.57% 0.01%Assets
Short-term 4575915
552.66 20.47% 5741171468.26 18.25% 2.22%borrowings
Contract liabilities 256506499.39 1.15% 623555669.97 1.98% -0.83%
Long-term 6537926
737.54 29.25% 5530649801.93 17.58% 11.67%borrowings
Lease liabilities 96858968.75 0.43% 146561588.52 0.47% -0.04%
Whether overseas assets account for a larger proportion of the total assets
□ Applicable √ Not applicable
2. Assets and liabilities at fair value
√ Applicable □ Not Applicable
Unit: RMB
Gains/losses Cumulative Impairment
on fair-value fair-value allowance Purchase Sale
Item Beginningamount changes in changes for the
amount in amount in Other Ending
the Reporting charged to current the current the current changes amount
Period equity period period period
Financial assets
1. Trading
financial
assets 286648129. 179515791.07 1066861148 133099806 202027
(derivative 34 .79 9.20 000.00
financial
assets
29Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Gains/losses Cumulative Impairment
Beginning on fair-value fair-value allowance
Purchase Sale
Item amount changes in changes for the
amount in amount in Other Ending
the Reporting charged to current the current the current changes amount
Period equity period period period
excluded)
2. Derivative
financial
assets
3.
Investments
in other debt
obligations
4.
Investments
in other 16114932.0 -5901121.80 1021380 10.20
equity
instruments
5. Other non-
current 180240988
7.89-639936762.254670000.005361912.61
116178
financial 1213.03
assets
Subtotal of
financial 2105172949.23 -460420971.18 -5901121.80
1071531148133635998137402.791.812023.23
assets
Investment
properties
Productive
biological
assets
Others 63943324.5 155957556.4 63943324.5 1559573 3 3 556.43
Total of the 216911627 -460420971.18 -5901121.80 1227488705 140030330 152997
above 3.76 .22 6.34 9579.66
Financial
liabilities
Other changes
Unit: RMB
Gains/losses
on fair-value Cumulative Impairment
Beginning changes in fair-value allowance Purchase Sale amount inItem amount the changes for the amount in the the current
Other Ending
Reporting charged to current current period period
changes amount
Period equity period
Receivables 63943324.53 155957556.43 63943324.53 155957556.43
financing
Significant changes to the measurement attributes of the major assets in the Reporting
Period:
□ Yes √ No
30Full Text of 2025 Annual Report of Konka Group Co. Ltd.
3. Restricted asset rights at the end of the Reporting Period
Item Ending book value (RMB) Reason for restriction
Among them RMB 525901180.93 is margin deposits which are pledged for
borrowings or issuing bank acceptance bills; RMB 612670635.63
Monetary funds 1293472374.79represents time deposits that are not available for early withdrawal and are
pledged as collateral for borrowings; RMB 154900558.23 is restricted for
other reasons.Accounts 1448244.31
receivable Pledge loan
Inventories 161827378.00Mortgaged for loan
Investment 445326656.45
properties Mortgaged for loan
Fixed assets Mortgage for finance lease mortgage loans and former shareholder1619724502.81 guarantee
Intangible assets 486364529.83Mortgaged for loan
Total 4008163686.19
VII. Investment analysis
1. Overall situation
√ Applicable □ Not Applicable
Amount of Reporting Period (RMB) Investment amount of the same periodof last year (RMB) Change (%)
423828715.93621882495.13-31.85%
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
Cumulati Reasons
ve for failure
Inve Fixed Input Accumulati realized to
stme asset Industry amount
ve actual Proje achieve
Project nt invest input Source of ct Estimate
returns the Disclosu Disclosur
meth ment involved
in the
Reportin amount as funds progr d returns
by the re date e index
of the ess end of
planned
progress (if any) (if any)od or not g Period period-end theReportin and
g Period estimated returns
Suining Konka
Electronic Self- Electroni 895076 60802710 Self- Not October
Technology build Yes cindustry 9.97 7.77 funded
- - - applicabl
e 17 2018Industrial Park
Chongqing
Konka Electroni Self- Cninfo159447 72237542 Not
Semiconductor Self-build Yes c
funded - - - applicabl June 14 (http://ww
Optoelectronic industry 38.3 7.42 and bank 2019 w.cninfo.Industrial Park financing
e com.cn)
Frestec Self- Electroni
Self- Not
Refrigeration build Yes c
321994 59358307 funded July 21
Industrial Park industry 23.03 1.68 and bank
- - - applicabl 2020
financing e
Total -- -- -- 570949 192398531.30 606.87 -- -- - - -- -- --
31Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Frestec Refrigeration Industrial Park has been put into operation. Suining Konka Electronic
Technology Industrial Park is under construction. The Semiconductor Optoelectronic
Research Institute project in Chongqing Konka Semiconductor Optoelectronic Industrial
Park has been completed and accepted.
4. Financial Asset Investments
(1) Securities Investments
√ Applicable □ Not Applicable
Unit: RMB
Gains/los Cumulati Purch
Securiti Securiti Securitie
Account ses on ase Sale Gains/lo
s Initial ing Beginni fair-value
ve fair-
es es investm measur ng book changes value
amoun amount sses in Ending Account
t in the in the the book ing Source
variety code abbreviation ent cost ement value in the
changes curren current Reportin value subject of funds
method Reportin charged
g Period to equity
t period g Period
period
Domesti
c/Foreig 003040 Chutian
153522
334.00 Fair 286648 736225 - - 360270 60610
Trading
- financial Self-
n stock Dragon value 129.34 36.83 666.17 629.43 assets funded
Domesti
c/Foreig 301127 Wuhan
239447
355.00 Fair - 105893
1066
-86114970727773184202027
Trading Self-
n stock Tianyuan value 254.24 8.79 403.03 818.76 000.00
financial
assets funded
Other securities investments
held at the end of the - -- - - - - - - -- --
Reporting Period
392969
Total -- 286648 179515
106613309833795202027
689.00129.34791.07-8611498069.----8.7920448.19000.00
Disclosure date of announcement on Board of
Directors’ approving securities investment April 4 2023 and April 1 2025
Disclosure date of announcement on General
Meeting approving securities investment (if any) Not applicable
(2) Investments in Derivatives
□ Applicable √ Not applicable
The Company had no investments in derivatives during the Reporting Period.VIII. Sale of major assets and equity interests
1. Sale of major assets
□ Applicable √ Not applicable
The Company did not sell any major assets during the Reporting Period.
2. Sale of major equity
√ Applicable □ Not Applicable
Net profit Ratio of
contributed net Implemente
from the profit Equity d asequity to the contribu Relate scheduled or
Transactio listed Impact of ted d- Relations involv not. If not
Counterp Equity Date of n price company the sale through Pricing principle party hip with ed clarify the Disclos Index to
arty sold sale (RMB from the on the the sale for the sale ofCompan equity transa
the fully ure disclosed
10000) beginning of of ction counterpa transfe
reasons and date information
the current y equity or not rty rred or
the
not measuresperiod to the to the taken by the
date of sale total net Company
(RMB 10000) profit
China Beneficia The arithmetic
Resource Wuha
n Decem
l for the mean of the Under the Cninfo
s Asset 91471.88
Decem
ber 24 77318.48 Compan -6.32% daily weighted same de (http://www.c
Manage Tianyu
Yes Yes Yes ber 25
2025 274 y to average price of facto ninfo.com.cn
ment an concentr Tianyuan's controller
2025)
(Shenzhe ate stock for the 30
32Full Text of 2025 Annual Report of Konka Group Co. Ltd.
n) Co. resource trading days
Ltd. s on the prior to the date
develop of the indicative
ment of announcement
main
business
IX. Major controlling and joint-stock companies
√ Applicable □ Not Applicable
Major subsidiaries and joint-stock companies with an over 10% effect on the Company’s
net profit
Unit: RMB
Company Relationshipwith the Main Registered Totalname Net assets
Operating Operating Net Profit
Company business capital assets Revenue profit
Anhui Konka Production
Tongchuang and sales 13989
Electrical Subsidiaries of RMB80000 09810. 74989477 16252886
--
57262661.57483879.
Appliances electronic 0000 75
4.7353.908769
Co. Ltd. products
Henan Production
Frestec and sales
Household Subsidiaries of RMB21000 234561 21271125 16878549 26353415. 19850916.391.72 8.98 3.98 16 20
Appliances electronic 0000
Co. Ltd. products
Subsidiaries obtained or disposed of in the Reporting Period
√ Applicable □ Not Applicable
Method of obtaining and disposing
Company name of subsidiaries during the Reporting Effects on overall operations and
Period operating performance
Kangrong Jiayuan Technology (Zhejiang) Equity transfer For better allocation of theCo. Ltd. Company's assets
Information about principal subsidiaries and joint stock companies:
None
X. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI. Prospect of the Company’s Future Development
In 2026 the Company will focus on optimizing and reshaping existing businesses and
enhancing the efficiency across the entire chain from R&D production supply sales and
service through lean management to significantly improve efficiency. Meanwhile the
Company will strive for innovative engines for high-quality development through analysis of
emerging industries under the "9+6" strategies.(I) Focus on existing business optimization and reshaping for overall enhancement of
efficiency of the entire chain
1. Focus on color TV business for quality and efficiency enhancement
(1)Production base optimization and integration
33Full Text of 2025 Annual Report of Konka Group Co. Ltd.
The Company will fully evaluate the existing production bases integrate factory capacity
as per actual business needs reduce fixed depreciation and amortization costs and
increase the gross profit margin of production for higher operational efficiency.
(2) Focus on core channel operations for domestic sales
The Company will make more efforts on strategic channel cooperation for online channels
to seek rapid growth; put emphasis on key retail stores for offline channels for the sales of
high-gross-profit products; and Maintain effective coordination with associate entities for
project channels in addition to constant investments in hotel brands for higher market
growth. On the product end the Company will strive to keep up with the trend of mini
products with focus on sub-sectors and create differentiated products such as gaming
TVs wallpaper TVs and age-friendly TVs.
(3) Overseas promotion of localization strategy
The Company will develop proper markets in the regions with favorable conditions in
particular those with high economic growth large color TV market capacity and stable
trade policies across the five major global regions while tapping into the potential of key
customers thus achieving breakthroughs on target customers and stabilizing the
foundation of the export business. The Company will endeavor to identify target markets
with reputed brand foundation and significant potential and work with clients to develop
marketing strategies and activities to create benchmark markets for replication and
promotion.
2. Focus on white TV business for loss reduction and breakthroughs
(1) Refrigerator landscape optimization
The Company will coordinate and integrate the white appliance factories across various
fields such as R&D supply chain production and marketing to improve operational
efficiency complete the landscape and matching for new energy-efficient refrigerators
streamline SKUs and improve the output efficiency of individual products. The Company
will further reinforce business foundation and operation capabilities of ToC channels online
while investing more in OTO channels and engineering models increasing contributions
from the markets of bases gaining higher market share and reshaping the product image
and reputation of refrigerators offline.
(2) Washing machine brand building
For domestic sales the Company will refine the product landscape for a full product line in
structural segments covering mini semi-automatic pulsator and front-loading models in
line with the resources across all subsidy channels on the high mid and low-end markets;
in addition the Company will further expand product planning for export sales to meet the
product demands of high-end customers.
34Full Text of 2025 Annual Report of Konka Group Co. Ltd.
3. Focus on PCB business for capability enhancement
The Company will further increase the sales of high value-added products such as double-
sided aluminum substrates thermoelectric separation copper substrates and thin boards
and increase the proportion of high gross margin products by deepening cooperation with
customers. The Company will systematically promote cost reduction in new processes and
procurement for cost reduction and income increase by adopting new processes
automation transformation and self-procurement of materials. The Company will actively
seek cooperation opportunities with industry competitors to improve capacity utilization.(II) Deepen lean management and innovation to empower business value growth
1. Lean management improvement for greater competence
(1) Further implementation of "6S management"
To leverage the professional integration capability to study and establish the "6S"
management system to fully enhance management efficiency. On one hand the Company
will continue to optimize the 2026 business plans from various perspectives such as
market trends competitive landscape and current operating status objectively and
comprehensively; on the other hand it will strengthen process control establish a
transparent management reporting system build a comprehensive process control
mechanism around the business goals and key management issues and dynamically
adjust operating strategies to steadily achieve the business goals.
(2) Comprehensively developing lean management
To achieve the goal of efficiency improvement across the entire chain of R&D
production supply sales and service. On the one hand the Company will continue to
enhance lean management of R&D with higher efficiency by shortening the R&D
cycle reducing trial-and-error costs and enhancing product manufacturability. The
Company will promote lean manufacturing on the production end enhance the automation
and intelligence of factories eliminate waste stabilize the production pace and improve
production and delivery capabilities. Meanwhile the Company will strive to reduce costs of
the supply chain and optimize procurement synergy to increase gross profit margins
strengthen turnover management to reduce negative operating losses. In addition the
Company will improve sales management reduce order waste and accelerate customer
response in line with market demand. While reinforcing lean service management the
Company will fully improve after-sales service reduce service costs enhance customer
satisfaction and reduce after-sales resource waste.
2. New growth driver development for profitability improvement
(1) Small home appliance business
35Full Text of 2025 Annual Report of Konka Group Co. Ltd.
The Company plans to develop self-operated businesses on small home appliances
explore an asset-light operation path through market-oriented recruitment and build an
efficient product operation system.
(2) Actively laying out the smart home industry track
Adhering to the concept of safe comfortable green and smart "good house" the
Company has applied the "family AI agent" as the hub based on the independent and
controllable ecosystem while working with the associate entities to build the Konka smart
home system covering home appliances and scenario-based terminals.
3. Rebuilding of the mechanism for innovation to empower business growth
(1) Continuous product innovation
The Company will boost product innovation centered on intelligence and user experience
to achieve a leap towards "scenario-based intelligence" and "experience aggregation". For
color TV the Company will continue the development of mini-color TVs with differentiated
labels such as "age-friendly" "artistic" and "healthy". For refrigerators the Company will
develop high-end refrigerators with differentiated features targeting mid-to-high-end
customers particularly cross-door French-door dual-system flat-embedded refrigerators
and large-freezer side-by-side refrigerators. For washing machines the Company will
develop the first high-end triple-tub washing machine platform towards the mid-to-high-end
market for domestic front-loading models.
(2) Constant technological innovation
Backed up by cutting-edge technologies in the industry the Company will deepen the
application of core technologies while enhancing the platform capabilities around core
product categories. For color TV the Company will focus on MLED (a collective term for
Micro LED and Mini LED) direct-view display and Mini LED backlight technologies to
support the R&D of flagship products. The Company will invest more in AI LLM to
support innovative applications on audio and video translation and digital humans. In
respect of refrigerator business the Company will focus on preservation (electric field
micro-freezing) and five-fold sterilization technologies. In addition the Company will
upgrade the whole-link disinfection and multi-tub platform technologies for the upgrading of
washing machines. In terms of PCB the Company will invest more in the new process
technology of drilling and resin plugging for double-sided copper-clad metal substrates.
(3) System innovation
The Company will endeavor to establish a three-tiered R&D system focusing on
cutting-edge technologies common platforms and the development of highly complex
products. It will also strengthen the R&D capabilities of manufacturing bases and
introduce a digital PLM system to improve R&D efficiency.
36Full Text of 2025 Annual Report of Konka Group Co. Ltd.
XII. Reception of Research Communications Interviews and Other Activities during
the Reporting Period
√ Applicable □ Not Applicable
Main points of
Reception Place of Method of Type of Index of basic
time reception reception object of Object of reception
discussion and
reception information
information of
provided researches
Shenzhen Pingbang Fund
Management Co. Ltd.: Sun
Jianchao Dong Chao
Beijing Jianggen Capital
Management Co. Ltd.: Li Min
Shenzhen Kuayue Fund
Management Co. Ltd.: Ge
Yunshuai
Shenzhen Chaoshan
Investment Group Co. Ltd.:
Zhang Jinbang Liang Huana
Shenzhen Specialized
Refined Special and New
Enterprises Development
Association: Wang Yan
Qianhai Yangtze River Fund
(Shenzhen) Co. Ltd.: Zhang
Hui
Conference Shenzhen Nuoyin Asset For details
Room of Management Co. Ltd.: Hou please refer to
Heng
February the Office Institution/i the Investor
13 2025 Building of Field surveyKonka ndividual
Institutions from CSC Relations
Financial Shenzhen Branch: Activity Record Cninfo
R&D Zhan Jiaqi Form (No. (http://www.cni
Building nfo.com.cn)Aden Financial Group Co. 2025-01)
Ltd.: Zhu Rongzhen
Northeast Securities Co. Ltd.Shenzhen Branch: Zhang
Jun Zhou Heming Huang
Shiyan
Meili Investment Fund
Management (Beijing) Co.Ltd.: Zhang Xiang
Guangzhou Lanhai Private
Equity Fund Management
Co. Ltd.: Pan Weiyu
Hainan Liangcheng Private
Equity Fund Management
Partnership (Limited
Partnership): Dai Fang
Individual investors: Huang
Xuexia Chen Kexin Li Jun
Pan Shuohua
May 7 Conference Online Investors participating in the For details
2025 Room of communicatio Individual 2024 Online Performance please refer to
the Office n on the Briefing of Konka Group Co. the Investor
37Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Main points of
Reception Place of Method of Type of discussion and Index of basic
time reception reception object of Object of reception information information ofreception provided researches
Building of network Ltd. through the Shenzhen RelationsKonka platform Stock Exchange “Interactive Activity RecordR&D Easy” website Form (No.Building (http://irm.cninfo.com.cn) 2025-02)
Conference For details
Room of please refer to
May 9 the Office the Investor
2025 Building of Field survey Institution Pacific Securities: Jin Tongyu RelationsKonka Activity Record
R&D Form (No.Building 2025-03)
Shenzhen Qingpu Capital
Management Co. Ltd.: Yan
Pu
Shenzhen Zeyuan Private
Equity Fund Co. Ltd.: Sun
Yan
Shiju Holding Co. Ltd.: Zou
Deqi
Shenzhen Rongxintai Private
Equity Fund Management
Conference Co. Ltd.: Cao Wei For details
Room of Shenzhen Nanfang Huijin please refer to
May 13 the Office Investment Management Co. the Investor
2025 Building of Field survey Institution Ltd.: Liu Jihong RelationsKonka Shenzhen Artificial Activity Record
R&D Intelligence Industry Form (No.Building Association AIGC Committee: 2025-04)
Zeng Lunxing
Xincheng Ruiyuan Enterprise
Management Consulting
(Shenzhen) Co. Ltd.: Jiang
Yan
Shenzhen Rongxintai Private
Equity Fund Management
Co. Ltd.: Wan Huan
Beijing Dacheng (Shenzhen)
Law Firm: Xu Yao
Conference For details
Room of please refer to
May 20 the Office the Investor
2025 Building of Field survey Institution Huaxi Securities: La Ruimeng RelationsKonka Activity Record
R&D Form (No.Building 2025-05)
Conference Online Investors participating in the For details
Room of
June 20 communicatio
investor briefing of Konka please refer to
the Office
2025 n on the Individual
Group Co. Ltd. on the the Investor
Building of network termination of the issuance of Relations
Konka platform shares and purchase of Activity Record
R&D assets and raising supporting Form (No.
38Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Type of Main points ofReception Place of Method of Index of basic
time reception reception object of Object of reception
discussion and
reception information
information of
provided researches
Building funds through Shenzhen 2025-06)Stock Exchange “InteractiveEasy” website
(http://irm.cninfo.com.cn)
Aiying Investment: Chen Fan
Guo Feng Ye Linkun Wang
Conference Fangwen For details
Room of Huihua Holding: Yin Ying please refer to
September the Office Xiaozhong Capital: Liang the Investor
12 2025 Building of Field survey Institution Xing RelationsKonka Chuanghua Investment: Li Activity Record
R&D Junhui Form (No.Building Fortune Online: Chang 2025-07)
Jianwu Ruan Shiwang He
Jie
XIII. Formulation and Implementation of Market Capitalization Management System
and Valuation Enhancement Plan
Whether the Company has formulated a market capitalization management system.□ Yes √ No
Whether the Company has disclosed its valuation enhancement plan.□ Yes √ No
XIV. Implementation of the "Quality and Return Dual Enhancement" Action Plan
Whether the Company has disclosed an announcement on the "Quality and Return Dual
Enhancement" Action Plan.□ Yes √ No
39Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Section IV Corporate Governance Environment and Society
I. General Information on Corporate Governance
During the Reporting Period in strict accordance with the requirements of the Company
Law the Securities Law the Code of Corporate Governance for Listed Companies the
Rules Governing the Listing of Shares on Shenzhen Stock Exchange relevant laws
regulations and rules of the CSRC as well as the actual needs of the Company the
Company revised relevant internal control systems continuously improved the corporate
governance structure and standardized the Company's operations in a timely manner. By
the end of the Reporting Period the actual situation of corporate governance was basically
in compliance with the requirements of the relevant regulatory documents on governance
of listed companies issued by the CSRC.(I) Shareholder and General Meeting
The Company has formulated the Articles of Association and the Rules of Procedure for
General Meetings which ensure the legitimate rights and equal status of all shareholders
especially minority shareholders; during the Reporting Period the Company was in strict
compliance with relevant requirements to issue notices on the General Meetings in
advance and convene the General Meetings ensuring that shareholders had the rights to
be informed and participate in major matters of the Company; related-party transactions
between the Company and related parties are fair and reasonable and have been fully
disclosed as required. In 2025 the Company held a total of eight General Meetings. In
accordance with the relevant laws and regulations the Company issued a notice of
convening the General Meetings in advance through the designated media and earnestly
carried out the registration arrangement and organization work for the General Meetings.The Company strictly adhered to the provisions of the Articles of Association to hold on-
site General Meetings at the Company's office address which is conveniently located
allowing shareholders to attend the meetings according to actual circumstances. The
Company's directors and senior executives provided explanations and clarifications in
response to shareholders' inquiries and suggestions during the General Meetings.(II) The Company and its Controlling Shareholder
During the Reporting Period the controlling shareholder and the de facto controller of the
Company have conducted themselves in a standardized manner exercised their rights
and fulfilled their obligations in accordance with the law. All major decisions of the
Company were made by the General Meetings in accordance with the law. The controlling
shareholder and the de facto controller of the Company have not directly or indirectly
interfered in the Company's decision-making and business operations beyond the scope of
authority of the General Meeting. The Board of Directors and internal organizations of the
40Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Company are able to operate independently and are independent of the controlling
shareholders and de facto controllers by practicing the “Five Separations” in terms of
business personnel assets organizations and finances.(III) Directors and the Board of Directors
The number and composition of the Board of Directors of the Company are in compliance
with the requirements of laws and regulations and the Company has formulated the Rules
of Procedure of the Board of Directors to ensure the efficient operation and scientific
decision-making of the Board of Directors; the Company has established an independent
directors system and has selected and appointed three independent directors. During the
Reporting Period the number and composition of the Board of Directors of the Company
were in compliance with the laws and regulations and the provisions of the Articles of
Association. The Board of Directors of the Company has set up four professional
committees namely the Audit Committee the Nomination Committee the Remuneration
and Evaluation Committee and the Strategy and Investment Committee to provide
professional advice for the decision-making by the Board of Directors. All directors of the
Company are able to carry out their tasks and fulfill their duties in accordance with the
Rules of Procedure of the Board of Directors the Independent Directors System and other
systems and diligently attend the Board meetings. During the Reporting Period the
Company held a total of 20 Board meetings effectively leveraging the decision-making
mechanism of the Board of Directors.(IV) Performance Valuation Incentive and Restraint Mechanism
The appointment of the Company's senior executives is open transparent and in
compliance with laws and regulations. The Company has established and is gradually
improving the performance evaluation standards and incentive and restraint mechanism
for senior executives so as to attract talents and ensure the stability of senior executives.(V) Stakeholders
The relationship between the Company and its stakeholders including banks and other
creditors employees consumers and suppliers is one of complementarity mutual
promotion and common development and the Company is able to fully respect and
safeguard the legitimate rights of the stakeholders and actively cooperate with them to
jointly promote the sustainable and healthy development of the Company. During the
Reporting Period the Company fully respected and safeguarded the legitimate rights and
interests of relevant stakeholders achieved a coordinated balance of the interests of
society shareholders and employees safeguarded the rights and interests of employees
promoted environmental protection and actively participated in social welfare and
41Full Text of 2025 Annual Report of Konka Group Co. Ltd.
charitable undertakings to jointly promote the Company's sustained and steady
development.(VI) Information Disclosure and Transparency
The Company has formulated the Investor Relations Management System and the
Information Disclosure Management System designated dedicated persons to be
responsible for information disclosure appointed a dedicated department to receive
shareholders' visits and inquiries and actively carried out investor relations management
to ensure that all shareholders have equal opportunities to access information. During the
Reporting Period the Company was able to disclose in a timely truthful complete and
accurate manner all types of corporate information that should be disclosed to the public in
accordance with the regulations in strict accordance with the laws regulations and the
Articles of Association of the Company ensuring accurate and timely disclosure of
corporate information and guaranteeing that all shareholders had equal opportunities of
access to the Company's information.(VII) Non-standard Governance Issues in the Company
1. Types of non-standard governance issues in the Company
There have been circumstances where the Company provided undisclosed information to
major shareholders.
2. Types and frequency of undisclosed information provided to major shareholders
The Company provides monthly financial data to its major shareholders.
3. Reasons for relevant non-standard corporate governance: In accordance with the
management requirements of the State-owned Assets Supervision and Administration
Commission of the State Council (SASAC) the Company submits monthly financial data
and other undisclosed information to the major shareholders directly under the jurisdiction
of SASAC.
4. Impacts on the Company's independence
The self-inspection indicates that the Company strictly adhered to the requirements under
the Notice on Strengthening Supervision over Provision of Undisclosed Information by
Listed Companies to Major Shareholders and Actual Controllers and other relevant
documents when providing relevant information to major shareholders and observed the
necessary procedures. There has been no abuse of control by major shareholders to
disclose undisclosed information for insider trading and there has been no impact on the
Company's independence.(VIII) Implementation of Special Corporate Governance Activities and Formulation and
Implementation of the Insider Registration Management System
1. Establishment and improvement of the insider management system
42Full Text of 2025 Annual Report of Konka Group Co. Ltd.
In order to further standardize the Company's insider information management practices
strengthen the confidentiality of the Company's insider information and uphold the
principle of fair information disclosure and in accordance with the Company Law the
Securities Law the Measures for the Regulations on Information Disclosure of Listed
Companies the Rules Governing the Listing of Shares on Shenzhen Stock Exchange and
other relevant laws regulations and normative documents the Company has established
the Inside Information and Insider Management System of Konka Group Co. Ltd. The
Company strictly implements and enforces the system in its information disclosure
practices. In addition the Company has conscientiously implemented the Company's
regulations on the registration and management of such insiders registered such insiders
and submitted filings to the Shenzhen Stock Exchange in accordance with the regulations.The Company has conducted a special inspection on the management of inside
information during the occurrence of major events in 2025 and the reporting period of the
2025 annual report. The self-inspection shows that the Company has effectively ensured
that during the period of preparation consideration and disclosure of regular reports and
major events the insiders of the Company have been in strict compliance with the
provisions on confidentiality. They have not leaked disclosed or spread the Company's
inside information to outsiders. There have been no cases where insiders traded the
Company's stocks using inside information prior to the disclosure of major sensitive
information that may affect the Company's stock price and there have been no cases of
investigation punishment and rectification by the regulatory authorities. The Inside
Information and Insider Management System of Konka Group Co. Ltd. was implemented
and controlled effectively.
2. Establishment and implementation of the external information user management system
In order to strengthen the management of the filings of the Company's inside information
in accordance with the relevant provisions of laws regulations and normative documents
such as the Securities Law of the People's Republic of China the Regulations on
Information Disclosure of Listed Companies and the Inside Information and Insider
Management System of Konka Group Co. Ltd. the Company has established an inside
information filing mechanism which regulates matters such as the scope of inside
information filing the filing procedures and the division of responsibilities.The Company has conducted a special inspection on the management of inside
information during the occurrence of major events in 2025 and the Reporting Period of the
2025 annual report. The self-inspection shows that the Company's inside information
filings have been in compliance with the requirements of the Inside Information and Insider
43Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Management System of Konka Group Co. Ltd. The Inside Information and Insider
Management System of Konka Group Co. Ltd. was implemented and controlled effectively.Whether there have been significant differences between the actual state of corporate
governance and the laws administrative regulations and the regulations issued by the
CSRC on the governance of listed companies
□ Yes √ No
The actual state of corporate governance has not differed materially from the laws
administrative regulations and the provisions on governance of listed companies issued by
the CSRC.II. The Company's independence relative to its controlling shareholders and de facto
controllers in terms of assets personnel finance organization and business
During the Reporting Period the Company was completely separated from its controlling
shareholder in terms of business personnel assets organizations finance etc. It enjoyed
the status of an independent legal entity and a market competition subject conducted
independent accounting had an independent and complete business operation and the
capability of independent operation and independently assumed operating responsibilities
and risks.(I) Business independence: The Company has a complete supply R&D production and
sales system with the capability to operate independently in the market. It conducts
independent operations accounting decision-making and independently assumes
responsibilities and risks without interference or control from the controlling shareholder
de facto controller or other enterprises controlled by them.(II) Personnel independence: The Company has an independent and complete system for
labor HR and salary management which is completely independent of the controlling
shareholder and de facto controller. The Company has an independent workforce. Its
senior executives financial staff and business personnel do not hold any positions other
than directors and supervisors in the shareholder entities or their affiliates.(III) Assets integrity: The Company has production and operation premises independent of
those of the controlling shareholder possesses an independent and complete asset
structure and owns assets such as an independent production system auxiliary
production system supporting facilities and housing ownership rights. It also has an
independent procurement and sales system.(IV) Organization separation: The Company has established functional organizations that
meet its own development needs and the requirements of market competition. All
functional organizations are completely independent in terms of personnel office premises
and management systems. There have been no circumstances of interference in the
44Full Text of 2025 Annual Report of Konka Group Co. Ltd.
establishment of the Company's organization by shareholders or any other entity or
individual.(V) Financial independence: The Company has an independent financial department with
full-time financial personnel has established an independent financial accounting system
and complies with the requirements of the relevant accounting system to carry out financial
work independently; the Company has formulated a sound financial management system
operates independently and does not share bank accounts with its controlling
shareholders affiliates or any other entities or individuals. The Company files tax returns
and fulfills its payment obligations independently in accordance with the law and there
have been no cases involving mixed tax payments with shareholder entities.III. Horizontal competition
√ Applicable □ Not Applicable
Type of
related Work
Problem type relationship Company Nature Problem cause Solution progress
with listed name and follow-
companies up plan
Within five years from
July 11 2025 the
Company will resolve
the business overlap
and potential
competition between the
Company and controlled
Business companies (excluding
overlap or the listed company and
potential its controlled
competition with companies)
the Company's and Konka ChipCloud
subsidiary - Semiconductor
Horizontal De facto JCET Konka Technology (Yancheng) Relevant
competition controller Group Co. SASAC ChipCloud Co. Ltd. a subsidiary of work is inLtd. Semiconductor the listed company progress
Technology through legal
(Yancheng) Co. procedures including
Ltd. - in terms of but not limited to
external trusteeship asset
packaging and restructuring business
testing services. cessation by one party
product structure
adjustment or joint
venture establishment
in a bid to comply with
regulatory requirements
concerning horizontal
competition.
45Full Text of 2025 Annual Report of Konka Group Co. Ltd.
IV. Directors and senior executives
1. Basic information
Shareholding Increase in Decrease in
at the the the Shareholding
Employment Start beginning of shareholding shareholding Other at the end of Reasons forName Gender Age Title status date End date the current during the during the increase/decrease the current changes in
period current current (shares) period shareholding
(shares) period period (shares)(shares) (shares)
Wu Jianjun Male 55 Chairman of the Incumbent August AugustBoard 14 2025 13 2028 0 0 0 0 0
Ye Xingbin Male 56 EmployeeDirector Incumbent
August August
14202513202800000
Director Incumbent August August14 2025 13 2028 0 0 0 0 0
Chief Financial Incumbent August August 0 0 0 0 0
Yu Huiliang Male 45 Officer 14 2025 13 2028
Concurrently
Secretary to the October August
Board of Incumbent 28 2025 13 2028 0 0 0 0 0
Directors
Non-
Song Qing Male 61 independent Incumbent August August
Director 14 2025 13 2028
00000
Sun Non-
Yongqiang Male 56 independent Incumbent
August August 0 0 0 0 0
Director 14 2025 13 2028
Li Zhong Male 58 IndependentDirector Incumbent
August August
14202513202800000
Pan Male 64 IndependentZhaoguo Director Incumbent
August August
14202513202800000
Liu Jian Male 60 Independent Incumbent August August 0 0 0 0 0
46Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Director 14 2025 13 2028
Shi Male 59 Vice President Incumbent August AugustHongchao 14 2025 13 2028 0 0 0 0 0
Dong Gang Male 49 Vice President Incumbent January August12 2026 13 2028 0 0 0 0 0
Lin Hongfan Male 55 Vice President Incumbent August August14 2025 13 2028 0 0 0 0 0
Yao Erfang Female 43 General Counsel Incumbent February August11 2026 13 2028 0 0 0 0 0
Vice Chairman
of the Board of
Zhou Bin Male 47 Directors (incharge of Resignation
August August
27202414202500000
business
operation)
Cao Shiping Male 48 DirectorPresident Resignation
October January
21202416202600000
Huang
Xinzheng Male 48 Director Resignation
October August
21202414202500000
Wang Independent July 25 August
Shuguang Male 55 Director Resignation 2022 14 2025 0 0 0 0 0
Deng Female 63 Independent Resignation July 25 AugustChunhua Director 2022 14 2025 0 0 0 0 0
Yang Bo Male 56 Vice President Resignation August January14 2025 12 2026 0 0 0 0 0
Nie Yong Male 53 Chief FinancialOfficer Resignation
August August
27202414202500000
Li Chunlei Male 53 Board Secretary Resignation August August27 2024 14 2025 0 0 0 0 0
Total -- -- -- -- -- -- 0 0 0 0 0 --
47Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Whether any director or senior executive left office during their term of office in the
Reporting Period
√ Yes □ No
On August 14 2025 Mr. Zhou Bin ceased to serve as the Vice Chairman and Director of
the Company's 10th Board of Directors and the positions in the relevant committees
UNDER the Board of Directors upon the expiration of term of office.On August 14 2025 Mr. Huang Xinzheng ceased to serve as a Director of the Company's
10th Board of Directors and the positions in the relevant special committees of the Board
of Directors upon the expiration of term of office.On August 14 2025 Mr. Wang Shuguang ceased to serve as an Independent Director of
the Company's 10th Board of Directors and the positions in the relevant special
committees of the Board of Directors upon the expiration of term of office.On August 14 2025 Ms. Deng Chunhua ceased to serve as an Independent Director of
the Company's 10th Board of Directors and her positions in the relevant special
committees of the Board of Directors upon the expiration of her term of office.On August 14 2025 Mr. Nie Yong ceased to serve as the Financial Director of the
Company upon the expiration of his term of office.On August 14 2025 Mr. Li Chunlei ceased to serve as the Secretary to the Board of
Directors of the Company upon the expiration of his term of office.On January 12 2026 Mr. Yang Bo resigned from the position of Vice President of the
Company due to work arrangements.On January 16 2026 Mr. Cao Shiping resigned from positions as Director and President
of the Company's 11th Board of Directors as well as his positions in the relevant
committees under the Board of Directors due to work arrangements.Changes of directors and senior executives of the Company
√ Applicable □ Not Applicable
Name Position(s) Type Date Reason
Wu Jianjun Chairman Director Elected August 14 2025 Reshuffle
Ye Xingbin Employee Director Elected August 14 2025 Reshuffle
Yu Huiliang Director Elected August 14 2025 Reshuffle
Song Qing Non-independent Director Elected August 14 2025 Reshuffle
Sun
Yongqiang Non-independent Director Elected August 14 2025 Reshuffle
Li Zhong Independent Director Elected August 14 2025 Reshuffle
Pan Zhaoguo Independent Director Elected August 14 2025 Reshuffle
Shi Hongchao Vice President Appointed August 14 2025 Reshuffle
Yu Huiliang Chief Financial Officer Appointed August 14 2025 Reshuffle
Yu Huiliang Concurrently Secretary tothe Board of Directors Appointed October 28 2025 Job transfer
48Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Name Position(s) Type Date Reason
Dong Gang Vice President Appointed January 12 2026 Job transfer
Yao Erfang General Counsel Appointed February 11 2026 Job transfer
Vice Chairman of the Board
Zhou Bin of Directors (in charge of Resignation upon
business operation) expiration of term
August 14 2025 Reshuffle
Cao Shiping Director President Resignation January 16 2026 Job transfer
Huang Resignation upon
Xinzheng Director expiration of term August 14 2025 Reshuffle
Wang
Shuguang Independent Director
Resignation upon
expiration of term August 14 2025 Reshuffle
Deng
Chunhua Independent Director
Resignation upon
expiration of term August 14 2025 Reshuffle
Yang Bo Vice President Resignation January 12 2026 Job transfer
Nie Yong Chief Financial Officer Resignation uponexpiration of term August 14 2025 Reshuffle
Li Chunlei Board Secretary Resignation uponexpiration of term August 14 2025 Reshuffle
2. Employment
Professional background and major work experience of the Company's current directors
senior executives as well as their current major responsibilities in the Company
(1) Non-independent Director
Mr. Wu Jianjun Secretary of the Party Committee Director and Chairman of the Board.Male of Han ethnicity born in 1971 with a bachelor's degree. Once served as Assistant
President and Vice President of China Resources Pharmaceutical Group Limited member
of the Party Committee of China Resources Medical Holdings Company Limited and
Deputy General Manager General Manager Deputy Secretary of the Party Committee
Secretary of the Party Committee and Chairman of the Board of China Resources
Pharmaceutical Commercial Group Co. Ltd. He currently serves as Assistant General
Manager of China Resources (Holdings) Co. Ltd. and Secretary of the Party Committee
Director and Chairman of the Board of Konka Group.Mr. Ye Xingbin Deputy Secretary of the Party Committee Chairman of the Trade Union
and Employee Director. Male of Han ethnicity born in 1970 with a bachelor's degree.Once served as a full-time Director of Overseas Chinese Town Holdings Company held a
temporary post as a member of the Standing Committee of the CPC Qiandongnan
Prefecture Committee and Deputy Governor of Guizhou Province Deputy Secretary of the
Party Committee and Director of Shenzhen Huakang Chuangzhan Technology Holding
Group Co. Ltd. and Deputy Secretary of the Party Committee and Director of Konka
49Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Group. He currently serves as Deputy Secretary of the Party Committee Chairman of the
Trade Union and Employee Director of Konka Group.Mr. Yu Huiliang member of the Party Committee Director Chief Financial Officer and
Secretary of the Board of Directors. Male of Han ethnicity born in 1981 with a master's
degree serves as a Certified Public Accountant (CPA) Certified Tax Agent (CTA)
Chartered Financial Analyst (CFA) and a member of the Association of Chartered
Certified Accountants (ACCA). He once served as Senior Manager of the Finance
Department of China Resources Group and Chief Financial Officer and member of the
Party Committee of China Resources Asset Management Co. Ltd. He currently serves as
a member of the Party Committee Director Chief Financial Officer and Secretary of the
Board of Directors of Konka Group.Mr. Song Qing Director. Male of Han ethnicity born in 1965 with a bachelor's degree.Once served as President and Chairman of the Board of China Resources Sanjiu Medical
& Pharmaceutical Co. Ltd. President of China Resources Pharmaceutical Group Limited
Chairman of the Board of China Resources Medical Holdings Company Limited and
Chairman of the Board of China Resources Health Group Ltd. He currently serves as a
part-time external director for relevant business units of China Resources (Holdings) Co.Ltd. and Director of Konka Group.Mr. Sun Yongqiang Director. Male of Mongolian ethnicity born in 1970 holds a
bachelor's degree in Engineering in Thermal Engineering from Dalian University of
Technology. Once served as Vice President and Chief Human Resources Officer of China
Resources Land Limited and held a temporary post as Deputy General Manager and
member of the Party Committee of Hainan Development Holdings Co. Ltd. He currently
serves as a full-time external director for relevant business units under China Resources
(Holdings) Co. Ltd. Director of China Resources Pharmaceutical Group Limited Director
of China Resources Ng Fung Limited and a Director of Konka Group Co. Ltd.
(2) Independent Directors
Mr. Li Zhong Independent Director. Male of Han ethnicity born in 1968 with a master's
degree. Once served as Deputy Manager of the Import Department and Domestic Sales
Department of the Plastics Company of China National Packaging Import & Export
Corporation under the former Ministry of Foreign Trade and Economic Cooperation
Assistant to the President of Greater China at the Asia-Pacific headquarters of Philip
50Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Morris International Inc. Director of Shenzhen Bus Group Co. Ltd. Executive Director of
China Water Affairs Group Limited and Executive Director and Chairman of the Board of
Kangda International Environmental Company Limited. He currently serves as Executive
Director of China Water Affairs Group Limited Executive Director of Kangda International
Environmental Company Limited and Independent Director of Konka Group Co. Ltd..Mr. Pan Zhaoguo Independent Director. male of Han ethnicity born in 1962 with a
master's degree serves as a fellow Certified Practicing Accountant of CPA Australia a
fellow to The Chartered Governance Institute a senior fellow to the Hong Kong Chartered
Governance Institute and a member of the Hong Kong Securities and Investment Institute.He once served as an Independent Non-executive Director of Tonly Electronics Holdings
Limited an Independent Non-executive Director of Honghua Group Limited an
Independent Non-executive Director of Chongqing Changan Minsheng APLL Logistics Co.Ltd. an Independent Non-executive Director of Yancoal Energy Group Company Limited
an Independent Non-executive Director of Yuanda China Holdings Limited an
Independent Non-executive Director of Tsingtao Brewery Co. Ltd. an Independent Non-
executive Director of Ningbo Zhoushan Port Company Limited and an Independent Non-
executive Director of CSSC Offshore & Marine Engineering (Group) Company Limited. He
currently serves as Executive Director Vice President and Secretary of Huabao
International Holdings Limited an Independent Non-executive Director of Sunac China
Holdings Limited AUX International Holdings Limited Sany Heavy Equipment
International Holdings Company Limited Greentown Service Group Co. Ltd. Jinchuan
Group International Resources Co. Ltd. and China Isotope & Radiation Corporation and
an Independent Director of Konka Group.Mr. Liu Jian Independent Director. Male of Han ethnicity born in 1966 with a master's
degree. Once served as Editor at the University of International Business and Economics
Press Editor at the China Business Times Independent Director of Wuhan Tianyuan
Environmental Protection Co. Ltd. Independent Director of Hisense Visual Technology
Co. Ltd. Independent Director of Founder Technology Group Co. Ltd. and Chairman of
Beijing Jingguan Culture Media Co. Ltd. among other positions. He currently serves as
Director and General Manager of Shandong Economic Observer Media Co. Ltd.President and Editor-in-Chief of the Economic Observer and Independent Director of
Konka Group.
(3) Senior executives
51Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Mr. Shi Hongchao member of the Party Committee Vice President. Male of Han ethnicity
born in 1967 with a bachelor's degree holds the qualification of Senior Engineer. He once
served as General Manager of Cangzhou China Resources Power Co. Ltd. General
Manager of the Inner Mongolia Branch of China Resources Power Deputy General
Manager of the Thermal Power Business Department and General Manager of the Inner
Mongolia Region of China Resources Power Holdings Company Limited and Deputy
General Manager of the Strategic Management Department of China Resources (Holdings)
Co. Ltd. He currently serves as a member of the Party Committee and Vice President of
Konka Group.Mr. Dong Gang member of the Party Committee Vice President. Male of Han ethnicity
born in 1977 with a master's degree. Once served as Deputy General Manager of the
Legal Affairs Department of China Huayuan Group Co. Ltd. Deputy General Manager of
the Corporate Management Department of Sanjiu Enterprise Group General Manager of
the Legal and Compliance Department of China Resources Asset Management Co. Ltd.and Deputy General Manager of the Legal and Compliance Department of China
Resources (Holdings) Co. Ltd. He currently serves as a member of the Party Committee
and Vice President of Konka Group.Mr. Yu Huiliang member of the Party Committee Director Chief Financial Officer and
Secretary of the Board of Directors. Male of Han ethnicity born in 1981 with a master's
degree serves as a Certified Public Accountant (CPA) Certified Tax Agent (CTA)
Chartered Financial Analyst (CFA) and a member of the Association of Chartered
Certified Accountants (ACCA). He once served as Senior Manager of the Finance
Department of China Resources Company Limited and member of the Party Committee
and Chief Financial Officer of China Resources Asset Management Co. Ltd. among other
positions. He currently serves as a member of the Party Committee Director Chief
Financial Officer and Secretary of the Board of Directors of Konka Group.Mr. Lin Hongfan member of the Party Committee Vice President. Male of Han ethnicity
born in 1971 with a bachelor's degree. He previously served as Deputy General Manager
of the Multimedia Marketing Division General Manager of the Color TV Strategy and
Supply Chain Management Center Executive Deputy General Manager and General
Manager of the Multimedia Business Division and Assistant to the President and Vice
President of Konka Group. He currently serves as a member of the Party Committee and
Vice President of Konka Group.
52Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Ms. Yao Erfang General Counsel General Manager of the Legal and Compliance
Department. Female of Han ethnicity born in 1983 with a doctoral degree. Once served
as a Professional Director of the Legal and Compliance Department of China Resources
Group. She currently serves as the General Counsel and General Manager of the Legal
and Compliance Department of Konka Group.Controlling shareholder or de facto controller serving concurrently as Chairman and
General Manager of the listed company
□ Applicable √ Not applicable
Position held at the shareholder's entity
√ Applicable □ Not Applicable
Whether the
Name of subject
person Name of Positions held at receives
holding the shareholder shareholder Start date End date remuneration or
position entities allowance fromthe shareholder
entities
Wu Jianjun China Resources Assistant General(Holdings) Co. Ltd. Manager July 7 2025
Part-time
Song Qing China Resources External Director(Holdings) Co. Ltd. for Business July 25 2025 Yes
Units
Sun China Resources Full-time External September 28
Yongqiang (Holdings) Co. Ltd. Director for YesBusiness Units 2023
Sun China Resources
Yongqiang Beverage Director April 22 2024 August 8 2025(Holdings) Co. Ltd.Sun China Resources
Yongqiang Pharmaceutical Director
December 27
Group Limited 2023
Sun China Resources
Yongqiang Ng Fung Limited Director May 20 2024
Explanation 1. Apart from this none of the other directors or senior executives of the Company hold positions in
of positions the shareholder entities.held at
shareholder 2. The terms of office for Mr. Wu Jianjun Mr. Song Qing and Mr. Sun Yongqiang in their positions at
entities the shareholder entities are currently unknown.
53Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Positions held at other entities
√ Applicable □ Not Applicable
Whether the
Name of person subject
holding the Name of other Positions held atentity other entities Start date End date
receives
position remuneration orallowance from
the other entity
Li Zhong Shenzhen Bus December 23 October 30Group Co. Ltd. Director 2004 2025 Yes
China Water
Li Zhong Affairs Group Executive Director June 4 2015 Yes
Limited
Kangda Executive Director Resigned asChairman of the
Li Zhong International and Chairman ofEnvironmental the Board of April 4 2019 Board of Yes
Company Limited Directors Directors onFebruary 4 2026
Huabao Executive Director
Pan Zhaoguo International Vice President and March 29 2004 Yes
Holdings Limited Company Secretary
Pan Zhaoguo Sunac China Independent Non-Holdings Limited Executive Director June 8 2011 Yes
Pan Zhaoguo AUX International Independent Non-Holdings Limited Executive Director May 15 2015 Yes
Sany Heavy
Equipment
Pan Zhaoguo International Independent Non- December 18Executive Director 2015 YesHoldings
Company Limited
Greentown
Pan Zhaoguo Service Group Independent Non-
Co. Ltd. Executive Director
June 13 2016 Yes
Jinchuan Group
Pan Zhaoguo International Independent Non-Resources Co. Executive Director March 21 2017 Yes
Ltd
China Isotope &
Pan Zhaoguo Radiation Independent Non-Executive Director June 30 2023 YesCorporation
Shandong
Economic
Liu Jian Observer Media Director General September 28
Co. Ltd. Manager 2022
Yes
President
Liu Jian The Economic President Editor-in-Observer Chief April 16 2001
Explanations on
positions held at None
other entities
Penalties imposed in the recent three years by the securities regulator on the incumbent
54Full Text of 2025 Annual Report of Konka Group Co. Ltd.
directors and senior executives as well as those who left their positions during the
reporting period
√ Applicable □ Not Applicable
On July 10 2023 the Company received the Decision of the CSRC Shenzhen Bureau on
Regulatory Talks against Liu Fengxi Zhou Bin Li Chunlei and Wu Yongjun ([2023] No.
108) issued by the CSRC Shenzhen Bureau which imposed regulatory talks against Liu
Fengxi Zhou Bin Li Chunlei and Wu Yongjun. For details please refer to the
Announcement on Receiving the Decision on Administrative Regulatory Measures from
the CSRC Shenzhen Bureau disclosed by the Company on Cninfo
(http://www.cninfo.com.cn).On December 26 2025 the Company received the Decision of the CSRC Shenzhen
Bureau on Issuing a Warning Letter to Konka Group Co. Ltd. Liu Fengxi Zhou Bin and Li
Chunlei ([2025] No. 260) (hereinafter referred to as the Decision Letter) issued by the
CSRC Shenzhen Bureau and the Regulatory Letter on Konka Group Co. Ltd. and
Relevant Parties (Gong Si Bu Jian Guan Han [2025] No. 224) (hereinafter referred to as
the Regulatory Letter) issued by the Shenzhen Stock Exchange which imposed regulatory
measures of issuing a warning letter to the Company Liu Fengxi Zhou Bin and Li Chunlei
respectively. For details please refer to the Announcement on receiving the Decision on
Administrative Regulatory Measures from the Shenzhen Bureau of the China Securities
Regulatory Commission and the Regulatory Letter from the Shenzhen Stock Exchange
disclosed by the Company on Cninfo (http://www.cninfo.com.cn).
3. Remuneration of Directors and Senior Executives
Decision-making procedure determination basis and actual payment of remunerations for
directors and senior executives
The remunerations of directors of the Company shall be approved by the Board of
Directors and thereafter submitted to the General Meeting for deliberation and decision.With reference to the remuneration levels of directors and supervisors of listed companies
in the same industry in China the remuneration scheme for the Company's directors
which was deliberated and approved by the Company's 2nd Extraordinary General
Meeting in 2015 is as follows: (1) The basic annual salary standard for the Chairman of
the Board of Directors is RMB 1.2 million. The allowance standard for other directors
(excluding directors who hold positions within the Company) is RMB 300000 per person
per year; it was implemented from June 2015. (2) The above standards are pre-tax
standards and the individual income tax shall be borne by the individuals themselves
which shall be withheld and paid by the Company.
55Full Text of 2025 Annual Report of Konka Group Co. Ltd.
The additional benefits for directors include the reimbursement of travel expenses for
attending meetings of the Board of Directors and the General Meeting as well as the costs
incurred in exercising their powers in accordance with relevant regulations of regulators
the Company's Articles of Association and other related Company policies all of which
are reimbursed based on actual expenses. The remuneration of the Company's senior
executives is determined by the Board of Directors with reference to the following factors:
a. The job content and responsibilities of the position; b. The Company's performance and
profitability; and c. The market remuneration levels within the same industry and region.The remunerations of the Company's senior executives shall be reviewed by the Board's
Remuneration and Evaluation Committee and then submitted to the Company's Board of
Directors for deliberation and decision.The remuneration information of the Company's directors and senior executives disclosed
for the year 2025 has been reviewed and approved by the Remuneration and Evaluation
Committee of the Board of Directors.Remuneration of directors and senior executives of the Company during the Reporting
Period
Unit: RMB10000
Whether the
Total before- subject
tax receives
Name Gender Age Title Employmentstatus compensation compensationreceived from from related
the Company parties of the
Company
Wu Jianjun Male 55 Chairman of theBoard Incumbent 49.07 No
Ye Xingbin Male 56 EmployeeDirector Incumbent 53.46 No
Director Chief
Financial
Yu Huiliang Male 45 OfficerSecretary of the Incumbent 40.36 No
Board of
Directors
Non-
Song Qing Male 61 independent Incumbent 4.55 No
Director
Sun Non-
Yongqiang Male 56 independent Incumbent 11.37 NoDirector
Li Zhong Male 58 IndependentDirector Incumbent 11.37 No
Pan Zhaoguo Male 64 IndependentDirector Incumbent 11.37 No
Liu Jian Male 60 Independent Incumbent 30.00 No
56Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Whether the
Total before- subject
tax receives
Name Gender Age Title Employmentstatus compensation compensationreceived from from related
the Company parties of the
Company
Director
Shi Hongchao Male 59 Vice President Incumbent 42.18 No
Lin Hongfan Male 55 Vice President Incumbent 53.46 No
Vice Chairman
of the Board of
Zhou Bin Male 47 Directors (incharge of Resignation 49.27 No
business
operation)
Cao Shiping Male 48 DirectorPresident Resignation 69.15 No
Huang
Xinzheng Male 48 Director Resignation 0 Yes
Wang Male 55 IndependentShuguang Director Resignation 18.63 No
Deng
Chunhua Female 63
Independent
Director Resignation 18.63 No
Yang Bo Male 56 Vice President Resignation 53.29 No
Nie Yong Male 53 Chief FinancialOfficer Resignation 35.60 No
Li Chunlei Male 53 BoardSecretary Resignation 35.64 No
Total -- -- -- -- 587.40 --
Assessment basis for the actual remuneration received by all Determined in accordance with the Company's
directors and senior executives at the end of the Reporting relevant remuneration management and operating
Period performance assessment rules.At the end of the Reporting Period the directors
and senior executives had not completed the
Completion for the actual remuneration received by all directors annual assessment and the final amount will be
and senior executives at the end of the Reporting Period based on the actual assessment payment. Theindependent director allowances received by
independent directors are not subject to
assessment.Deferred payment arrangement for the actual remuneration
received by all directors and senior executives at the end of the Not applicable
Reporting Period
Payment stoppage and recourse for the actual remuneration
received by all directors and senior executives at the end of the Not applicable
Reporting Period
Other information or explanations
□ Applicable √ Not applicable
57Full Text of 2025 Annual Report of Konka Group Co. Ltd.
V. Performance of duties by directors during the Reporting Period
1. Attendance of directors at Board of Directors meetings and General Meetings
Attendance of directors at Board of Directors meetings and General Meetings
Whether the
Number of subject has
Board of Number of Number of Number of failed to
Directors Board of Board of Board of
Number of
Board of attend the Number of
Name of meetings to Directors Directors Directors Directors Board of General
director be attended meetings meetings meetings meetings Directors
for the attended on attended via attended not meetings in
Meetings
attended
Reporting site telecommun through a person for
Period ication proxy
attended two
consecutive
times
Wu Jianjun 6 6 0 0 0 No 2
Ye Xingbin 6 5 0 1 0 No 7
Yu Huiliang 6 6 0 0 0 No 3
Song Qing 6 4 2 0 0 No 0
Sun
Yongqiang 6 4 2 0 0 No 0
Li Zhong 6 4 2 0 0 No 0
Pan
Zhaoguo 6 3 3 0 0 No 0
Liu Jian 20 0 20 0 0 No 0
Zhou Bin 14 1 13 0 0 No 5
Cao Shiping 20 7 13 0 0 No 7
Huang
Xinzheng 14 1 13 0 0 No 0
Wang
Shuguang 14 1 13 0 0 No 0
Deng
Chunhua 14 1 13 0 0 No 1
Explanations on why the subject has failed to attend the Board meetings in person for two
consecutive times
None
2. Objections raised by directors on relevant matters of the Company
Whether the director has raised objections on relevant matters of the Company
□ Yes √ No
No objections have been raised by directors on relevant matters of the Company in the
Reporting Period.
3. Additional explanations on the performance of duties by directors
Whether the suggestions from directors have been adopted by the Company
√ Yes □ No
Explanations on whether suggestions from directors have been adopted or not
58Full Text of 2025 Annual Report of Konka Group Co. Ltd.
During the Reporting Period the Company's directors actively attended relevant meetings
diligently reviewed various proposals and fully played their roles in "formulating strategies
making decisions and preventing risks" gained an in-depth understanding of the
development of businesses such as semiconductors as well as the Company's
operational status internal control construction and the implementation of resolutions of
Board meetings. The Company's directors have leveraged their professional expertise to
provide constructive suggestions for the Company's development and corporate
governance such as increasing R&D investment focusing on cash flow actively
expanding overseas markets driving cost reduction and expense control in production
strengthening cooperation with upstream and downstream partners and mitigating foreign
exchange risks.VI. Performance of duties by specialized committees under the Board during the
Reporting Period
Number Other Details
Name of of Date of Content of Important opinions and information
of
committee Membership meetings
matters
convene meeting meeting suggestions put forward
on the
performanc of
d e of duties dissent(if any)
Review of the After the review and analysis of
Company's the documents on the
January 8 issuance of
Company's issuance of shares
None
2025 shares to
to purchase assets and raise
purchase assets supporting funds relevant
and raise opinions were issued and such
supporting funds progress was agreed tocontinue.Statement of
Audit Committee
Members on The audit work arrangementsfor the Company's 2024 annual None
Deng Matters such asAudit Work report were approved.Financial Chunhua
Audit Huang
Arrangements
Xinzheng 6 1. The submission of theCommittee Wang Deliberation financial statements to the
Shuguang Opinion of the annual audit Certified Public
January 13 Audit Committee Accountants for audit was
2025 on the Financial approved.
Accounting 2. The annual audit firm
Statements engaged by the Company
Issued by the should strictly adhere to the None
Company before requirements of the Chinese
the Entry of the Certified Public Accountant
Annual Audit Auditing Standards while
Certified Public conducting the audit. Any
Accountants major issues identified shouldbe promptly communicated to
this Committee.
59Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Number Other Detailsof
Name of of information
committee Membership meetings
Date of Content of Important opinions and matters
convene meeting meeting suggestions put forward
on the
performanc of
d e of duties dissent(if any)
Deliberation
Opinion on the
Company's
Financial No objection was raised
Accounting regarding the Company's 2024
March 28 Statements after financial accounting statements
2025 the Annual Audit preliminarily reviewed by None
Certified Public ShineWing Certified Public
Accountants Accountants (Special General
Issued Their Partnership).Preliminary Audit
Opinion
Proposal on
Postponing the It was proposed to postpone
Appointment of the appointment of the audit None
the Accounting firm for the Company's 2025
Firm in 2025 financial statements.
1. Review Opinion on the
Company's 2024 Annual
Report: After careful review by
the members of the Financial
Audit Committee we have no
objection to the 2024 Annual
Report and its summary
prepared by the Company as
well as the audit report with a
standard unqualified opinion for
2024 issued by ShineWing
Certified Public Accountants
Review opinion (Special General Partnership).April 1
of the Audit 2. Review Opinion on the2025
Committee on Company's 2024 Internal
matters related Control Evaluation Report: The
to the 44th Company has now established None
meeting of the a relatively complete internal
10th Board of control system. The current
Directors internal control system
complies with the requirements
of relevant national laws and
regulations as well as the
actual needs of the Company's
production operation and
management and can be
effectively implemented. The
establishment of the internal
control system has played a
significant role in risk
prevention and control across
all aspects of the Company's
production operation and
60Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Number Other Detailsof
Name of ofMembership meetings Date of Content of Important opinions and
information matters
committee convene meeting meeting suggestions put forward
on the
performanc of
d e of duties dissent(if any)
management ensuring the
orderly and effective conduct of
the Company's business
activities safeguarding the
security and integrity of the
Company's assets and
protecting the interests of the
Company and its shareholders.After careful review by the
members of the Financial Audit
Committee we believe that the
Company's 2024 Internal
Control Evaluation Report
complies with the Self-
Regulatory Guidelines No. 1 for
Companies Listed on
Shenzhen Stock Exchange –
Standard Operations of Main
Board Listed Companies
issued by the Shenzhen Stock
Exchange and other relevant
documents. The evaluation
report has truthfully and
comprehensively reflected the
actual situation of the
Company's internal control
system.
3. Review Opinion on Reports
Related to the Company's
Internal Audit Work: After
careful review by the members
of the Financial Audit
Committee we have no
objection to the 2024 Annual
Internal Audit Work Report of
Konka Group the 2024 Internal
Audit Work Summary and 2025
Key Work Plan of Konka
Group and the 2025 Annual
Internal Audit Plan of Konka
Group submitted by the
Company.
4. Review Opinion on the
Company's 2024
Comprehensive Risk
Management Report and 2025
Major Operational Risk
Forecast Report: After careful
review by the members of the
Financial Audit Committee we
have no objection to the 2024
61Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Number Other Detailsof
Name of ofMembership meetings Date of Content of Important opinions and
information matters
committee convene meeting meeting suggestions put forward
on the
performanc of
d e of duties dissent(if any)
Comprehensive Risk
Management Report and 2025
Major Operational Risk
Forecast Report of Konka
Group Co. Ltd. submitted by
the Company.No objection was raised
Resolution of the against the 2024 Annual
Financial Audit Internal Audit Work Report of
Committee on Konka Group the 2024 Internal
Reports Related Audit Work Summary and 2025
to the Key Work Plan of Konka None
Company's Group and the 2025 Annual
Internal Audit Internal Audit Plan of Konka
Work Group submitted by the
Company.No objection was raised
regarding the 2024 Annual
Resolution on Report and its summary
the Company's prepared by the Company as
2024 Annual well as the standard None
Report unqualified opinion audit reportissued by ShineWing Certified
Public Accountants (Special
General Partnership) for 2024.It was considered that the
Company's 2024 Internal
Control Evaluation Report
complies with the Self-
Regulatory Guidelines No. 1 for
Resolution on Companies Listed on
the Company's Shenzhen Stock Exchange –
2024 Internal Standard Operations of Main
Control Board Listed Companies None
Evaluation issued by the Shenzhen Stock
Report Exchange and other relevantdocuments. The evaluation
report has truthfully and
comprehensively reflected the
actual situation of the
Company's internal control
system.Resolution of the
Financial Audit
Committee on No objection was raised
April 18 the Company's regarding the Company's
2025 Financial financial statements for the first
None
Accounting quarter of 2025.Statements for
the First Quarter
62Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Number Other Detailsof
Name of of information
committee Membership meetings
Date of Content of Important opinions and matters
convene meeting meeting suggestions put forward
on the
performanc of
d e of duties dissent(if any)
of 2025
The Company's appointment of
Review Opinion Mr. Yu Huiliang as the Chief
August 13 on the Financial Officer of the
2025 Appointment of Company was approved with Nonethe Chief his term of office consistent
Financial Officer with that of the current senior
executives.Resolution on
the Company's
August 27 Semi-Annual
No objection was raised
regarding the Company's semi-
2025 FinancialAccounting annual financial statements for
None
Statements for 2025.
2025
It was proposed to continue
Pan Proposal on the appointing ShineWing Certified
Audit Zhaoguo September Appointment of Public Accountants (Special
Committee Sun 3 11 2025 Accounting Firm General Partnership) as the NoneYongqiang for 2025 Company's 2025 financialLiu Jian statement audit firm and
internal control audit firm.Resolution on
the Company's
financial No objection was raisedOctober 28 accounting regarding the Company's2025 statements for financial statements for the
None
the third quarter third quarter of 2025.of 2025
1. The Business Performance
Responsibility Statement of the
Company's Management Team
for 2025 was approved.
2. The remuneration status of
Review opinion the Company's directors
Wang of the supervisors and senior
Shuguang Remuneration executives disclosed for 2024
Remunerati Ye Xingbin and Evaluation was reviewed and the review
on and Huang April 1 Committee on opinions were issued as
Evaluation Xinzheng 1 2025 matters related follows: None
Committee Liu Jian to the 44th (1) In 2024 the remuneration
Deng meeting of the status of the Company's
Chunhua 10th Board of directors supervisors and
Directors senior executives disclosed in
the annual report is true.
(2) The remuneration disclosed
by directors supervisors and
senior executives complies
with the Company's
remuneration management
63Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Number Other Detailsof
Name of ofMembership meetings Date of Content of Important opinions and
information
on the matterscommittee convene meeting meeting suggestions put forward performanc of
d e of duties dissent(if any)
system without any violations
of the Company's remuneration
management system.An application was made for
the nomination by the Board of
Directors of Mr. Wu Jianjun
Mr. Cao Shiping Mr. Yu
Review opinion Huiliang Mr. Song Qing and
July 21 on candidates for
Mr. Sun Yongqiang as
candidates for non-
2025 the election of anew Board of independent directors of the
None
Liu Jian Directors 11th Board of Directors; and
Zhou Bin Mr. Li Zhong Mr. Pan
Cao Zhaoguo and Mr. Liu Jian as
Shiping candidates for independent
Wang directors for deliberation at the
Shuguang general meeting.Deng
Nomination It was proposed that theChunhua
Committee 3 Company appoint Mr. CaoShiping as President Mr. Shi
Proposal on the Hongchao Mr. Yang Bo and
August 13 re-election of Mr. Lin Hongfan as Vice
2025 senior Presidents and Mr. Yu None
management Huiliang as Financial Director.Affiliated committee member
Mr. Cao Shiping abstained
from voting.Li Zhong It was proposed that the
Ye Xingbin Proposal on the Company appoint Mr. Yu
Song Qing October 28 appointment of Huiliang as the Secretary to the
Pan 2025 the Secretary to Board of Directors of the None
Zhaoguo the Board of Company with his term of
Liu Jian Directors office consistent with that of thecurrent senior executives.VII. Work of the Audit Committee
Whether the Audit Committee in its oversight activities has identified any risks that the
Company is exposed to
□ Yes √ No
The Audit Committee has raised no objections to the matters overseen during the
Reporting Period.VIII. Employees
1. Number of employees functional composition and educational background
Number of in-service employees in the parent company
at the end of the Reporting Period 953
Number of in-service employees in major subsidiaries at 11100
64Full Text of 2025 Annual Report of Konka Group Co. Ltd.
the end of the Reporting Period
Total number of in-service employees at the end of the
Reporting Period 12053
Total number of employees receiving remuneration
during the current period 12053
Number of retired employees for whom the parent
company and major subsidiaries are responsible for 0
bearing the costs (in persons)
Functional composition
Functional composition type Number of functional composition (in persons)
Production staff 6087
Sales staff 3323
Technical staff 1337
Finance staff 433
Administrative staff 873
Total 12053
Educational background
Educational background category Number (people)
Master's degree and above 271
Bachelor's degree 2627
Vocational and technical college degree 3547
High school diploma or below 5608
Total 12053
2. Remuneration policy
The Company has formulated a remuneration system based on the business strategy that
serves the development and improvement of the Company guided by the principles of
determining salaries according to positions and setting salaries based on performance and
capabilities while balancing market competitiveness and internal equity. Employee
remuneration is determined as per the Company's profitability the positions and the
performance.
3. Training program
In 2025 the Company adhered to a people-oriented approach placed great emphasis on
talent development in line with the demands of the Company's strategic business
organized various training activities under the "3+1" talent cultivation scheme to constantly
improve the Company's talent development system and enhance employees' professional
skills and overall quality. Adhering to the principle of the Party overseeing talent
management with lean management as a prerequisite the Company has continuously
carried out various tasks in three aspects namely "promoting the implementation of the
strategy supporting business transformation and coordinating talent development" with
satisfactory results. Focusing on the "three levels seven major brands" project operation
65Full Text of 2025 Annual Report of Konka Group Co. Ltd.
system the Company advanced projects such as Konka Open Courses for all employees
throughout the year; in terms of campus recruitment and social recruitment the Company
organized targeted orientation training to help new employees adapt rapidly; to
continuously strengthen professional development and empower business growth based
on the characteristics of each business line within the "3+1" talent framework the
Company carried out professional training programs for marketing R&D and
manufacturing talents effectively supporting the construction of talents with high-quality
training towards the Company's strategies.
4. Labor outsourcing
□ Applicable √ Not applicable
IX. Profit Distribution and the Conversion of Capital Reserve into Share Capital
The formulation implementation or adjustment of the profit distribution policy particularly
the cash dividend policy during the Reporting Period
√ Applicable □ Not Applicable
The Company's cash dividend policy is clearly stipulated in the Articles of Association with
explicit and clear dividend standards and ratios. The relevant decision-making procedures
and mechanisms are well-established. The independent directors of the Company have
diligently performed their duties and played their due roles providing minority shareholders
with ample opportunities to express their opinions and demands and effectively
safeguarding the legitimate rights and interests of minority shareholders. The Company
has strictly adhered to the cash dividend policy stipulated in the Articles of Association
and the cash dividends distributed by the Company are in compliance with the provisions
of the Articles of Association and the requirements of the resolutions of General Meetings.In accordance with the Guidelines for the Articles of Association of Listed Companies
(2025 Revision) issued by the CSRC and the relevant requirements of the State-owned
Assets Supervision and Administration Commission (SASAC) the Company revised the
profit distribution policy stipulated in the Articles of Association changing the cash
dividend policy objective from "stable growth dividends" to "the Company implements a
continuous and stable profit distribution policy" and clarifying that the Company's profit
distribution policy follows the statutory minimum requirements.Special statement on the cash dividend policy
Whether it is in compliance with the Company's Articles
of Association and resolutions of General Meetings: Yes
Whether the dividend standards and ratios are explicit
and clear: Yes
Whether the relevant decision-making procedures and
mechanisms are complete: Yes
Whether the independent directors have performed their Yes
66Full Text of 2025 Annual Report of Konka Group Co. Ltd.
duties diligently and played their due roles:
If the Company has not distributed cash dividends it
should disclose the specific reasons and the measures it
plans to take next to enhance the level of investor Not applicable
returns:
Whether minority shareholders have been given ample
opportunities to express their opinions and demands and
whether their legitimate rights and interests have been Yes
fully protected:
Whether the conditions and procedures have been
compliant and transparent if the cash dividend policy has Yes
been adjusted or changed:
The Company was profitable during the Reporting Period and the parent company's
profits available for distribution to shareholders were positive but no cash dividend
distribution plan was proposed
□ Applicable √ Not applicable
Whether the Board of Directors has reviewed the profit distribution plan (including no
dividend distribution and no conversion)
√ Yes □ No
The profit distribution and the conversion of capital reserve into share capital during the
Reporting Period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends issue bonus shares or convert
capital reserve into share capital for the year.X. Implementation of the Company's equity incentive plan employee stock
ownership plan (ESOP) or other employee incentives
□ Applicable √ Not applicable
The Company had no equity incentive plan employee stock ownership plan or other
employee incentive measures and their implementation during the Reporting Period.
67Full Text of 2025 Annual Report of Konka Group Co. Ltd.
XI. Construction and Implementation of Internal Control Systems during the
Reporting Period
1. Construction and implementation of internal control systems
In accordance with the relevant regulations of the CSRC and the Shenzhen Stock
Exchange the Company adheres to the basic principles of internal control. After initiating
professional integration in July 2025 the Company carried out a series of tasks for
integration and optimization according to its actual situation. It has established and
improved its internal control system which has been effectively implemented. The
Company's Audit Committee Audit Department and Legal Compliance Department
guided by value management and aiming to strengthen risk control have continuously
enhanced compliance supervision and internal control evaluation overseeing and
assessing the Company's internal control management. The Company's Internal Control
Self-Evaluation Report for 2025 has comprehensively truthfully and accurately reflected
the actual situation of the Company's internal control.
2. Details of major deficiencies in internal control identified during the Reporting
Period
□ Yes √ No
XII. Management and Control over Subsidiaries by the Company for the Reporting
Period
Measures
Company Integration Integration Issues during already taken Progress of Follow-up
name plan progress integration to address the the resolution resolution
issues plan
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Abnormal conditions in subsidiary management and control
□ Yes √ No
XIII. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal Control Evaluation Report
Date of full-text disclosure of the
Internal Control Evaluation Report April 29 2026
Index to the full-text disclosure of the
Internal Control Evaluation Report Cninfo (http://www.cninfo.com.cn)
Total assets of the units included in
the evaluation scope as a percentage
of the total assets in the Company's Over 90.00%
consolidated financial statements
Revenue of the units included in the
evaluation scope as a percentage of
the total revenue in the Company's Over 90.00%
consolidated financial statements
Deficiency identification criteria
68Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Category Financial reporting Non-financial reporting
The following are indications that
there may be major deficiencies in
non-financial reporting-related
Deficiencies with the following characteristics are identified as internal controls: (1) Serious
major deficiencies: (1) Discovery of fraudulent acts by the violations of national laws and
Company's directors supervisors and senior executives that regulations by the Company's
have a material impact on the financial reports; (2) The business activities; (2) Very frequent
Company's alteration of published financial reports to reflect the exposure of negative news in the
correction of material misstatements resulting from fraud or media that may cause significant
error; (3) The discovery by the certified public accountant of a damage to the Company's reputation;
material misstatement of a current period's financial reports and (3) The departure of the core
the failure of the internal controls to detect the misstatement management team in droves or a
during their operation; (4) Ineffective oversight of internal serious turnover of personnel in key
controls by the Company's audit committee and internal audit positions; (4) Lack of institutional
organization; (5) Major deficiencies identified in the evaluation control or systematic failure of
of internal controls not corrected after a reasonable period of systems in important businesses; (5)
time; (6) Lack of institutional controls over significant operations Any major deficiency identified in theinternal control evaluation fails to be
Qualitative or systemic failures of the system. Deficiencies with the
criteria following characteristics are recognized as significant
rectified in a timely manner. The
deficiencies: (1) Failure to select and apply accounting policies following are indications that there
in accordance with generally accepted accounting principles; (2) may be significant deficiencies in
Failure to establish anti-fraud procedures and control measures; non-financial reporting-related
(3) Failure to establish corresponding control mechanisms or internal controls: (1) Relatively
implement them for the accounting treatment of non-routine or frequent appearance of negative
extraordinary transactions and lack of corresponding news in the media that may cause
compensatory controls; (4) One or more deficiencies in controls considerable damage to the
over the process of preparing the financial statements at the Company's reputation; (2) Relatively
end of the period; no reasonable assurance that the prepared serious turnover of personnel in key
financial statements achieve the objectives of truthfulness and positions; (3) Significant deficiencies
accuracy; (5) Significant deficiencies identified in the internal in important business control
control evaluation have not been corrected after a reasonable systems; (4) Significant deficiencies
period of time. Other internal control deficiencies that do not identified in the internal control
meet the criteria for major or significant deficiencies are evaluation have not been rectified in
classified as general deficiencies. a timely manner. Other internalcontrol deficiencies that do not meet
the criteria for major or significant
deficiencies are classified as general
deficiencies.Major deficiency: Potential misstatements amounting to ≥ 1% of
the gross profit amount of the Company's consolidated financial
statements for 2025. Significant deficiency: 0.5% of the gross
Quantitativ profit amount of the Company's consolidated financial Subject to the quantitative criteria of
e criteria statements for 2025 ≤ the amount of potential misstatement < internal control defect evaluation in1% of the gross profit amount of the Company's consolidated financial statements.financial statements for 2025. General deficiency: Potential
misstatements amounting to < 0.5% of the gross profit amount
of the Company's consolidated financial statements for 2025.Number of major deficiencies
in financial reporting (counts) 0
Number of major deficiencies
in non-financial reporting 0
Number of significant
deficiencies in financial 0
reporting
69Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Number of significant
deficiencies in non-financial 0
reporting
2. Internal Control Audit Report
√ Applicable □ Not Applicable
Opinion paragraph in the Internal Control Audit Report
Konka Group Co. Ltd. has maintained in all material aspects effective internal control over financial reporting as of
December 31 2025 in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.We draw the attention of the users of the Internal Control Audit Report to the facts that (I) Konka Group Co. Ltd.announced in July 2025 that the controlling shareholder of the Company changed; (II) Konka Group Co. Ltd.transferred the equity of Shenzhen ypfun Network Technology Co. Ltd. (currently Chongqing ypfun Technology Co.Ltd. hereinafter referred to as "ypfun") to 11 investors in December 2021 and signed supplementary agreements with
the 11 investors respectively stipulating that if ypfun fails to complete its IPO by the end of 2025 Konka Group Co.Ltd. is required to repurchase the equity transferred to them at the original transfer price and pay interest. The above-
mentioned supplementary agreements were not resolved by the Board of Directors or the General Meeting of Konka
Group Co. Ltd. nor were they announced. Konka Group Co. Ltd. has conducted self-examination and rectification on
the above issues this year and has carried out accounting treatment and information disclosure in accordance with
the relevant regulations of accounting standards for business enterprises and listing supervision rules. The content
under this paragraph shall not affect the audit opinion expressed on the internal control over financial reporting.Disclosure of the Internal Control Audit Report Disclosed
Disclosure date of the full text of the Internal Control Audit
Report April 29 2026
Disclosure index of the full text of the Internal Control
Audit Report Cninfo (http://www.cninfo.com.cn)
Type of opinions under the Internal Control Audit Report Unqualified opinion with an emphasis-of-matterparagraph
Whether there are any major deficiencies in non-financial
reporting No
Whether the accounting firm has issued an Internal Control Audit Report with a non-
standard opinion
√ Yes □ No
Statement on the Internal Control Audit Report with modified audit opinions issued by the
accounting firm
We draw the attention of the users of the Internal Control Audit Report to the facts that (I)
Konka Group Co. Ltd. announced in July 2025 that the controlling shareholder of the
Company changed; (II) Konka Group Co. Ltd. transferred the equity of Shenzhen ypfun
Network Technology Co. Ltd. (currently Chongqing ypfun Technology Co. Ltd.hereinafter referred to as "ypfun") to 11 investors in December 2021 and signed
supplementary agreements with the 11 investors respectively stipulating that if ypfun fails
to complete its IPO by the end of 2025 Konka Group Co. Ltd. is required to repurchase
the equity transferred to them at the original transfer price and pay interest. The above-
mentioned supplementary agreements were not resolved by the Board of Directors or the
General Meeting of Konka Group Co. Ltd. nor were they announced. Konka Group Co.Ltd. has conducted self-examination and rectification on the above issues this year and
70Full Text of 2025 Annual Report of Konka Group Co. Ltd.
has carried out accounting treatment and information disclosure in accordance with the
relevant regulations of accounting standards for business enterprises and listing
supervision rules. The content under this paragraph shall not affect the audit opinion
expressed on the internal control over financial reporting.Whether the Internal Control Audit Report issued by the accounting firm is consistent with
the opinion of the Board of Directors' self-assessment report
√ Yes □ No
Whether any non-standard opinion was issued for the Reporting Period or the previous
year
√ Yes □ No
Causes and rectification progress of the non-standard Internal Control Audit Report
opinion:
The Company transferred the equity of Shenzhen Ypfun Network Technology Co. Ltd.(now renamed as: Chongqing Ypfun Technology Co. Ltd. hereinafter referred to as
"Ypfun") to 11 investors in December 2021 and signed supplementary agreements with
the 11 investors respectively stipulating that if Ypfun fails to complete its IPO by the end of
2025 the Company is required to repurchase the equity transferred to them at the original
transfer price and pay interest. The supplementary agreement was not resolved by the
Board of Directors or the General Meeting of the Company nor was it announced.After initiating professional integration the Company comprehensively reshaped and
upgraded its internal control system. Through a series of systematic integration
optimization rectification and improvement measures all the above-mentioned issues
have been fully rectified by the end of 2025 without any further impact on the
effectiveness of the Company's overall internal control. The rectification and optimization
measures were taken as follows:
1) Comprehensive investigation and rectification focusing on core areas. Through carrying
out comprehensive investigation and rectification in key areas such as financial funds
investment management and corporate governance the Company further addressed
management shortcomings and strengthened the control of weak links. For relevant errors
the Company has strictly conducted accounting adjustments and standardized processing
in accordance with the Accounting Standards for Business Enterprises and the Company's
financial accounting norms completely eliminating the impact on the Company's financial
statements.
2) Optimization of the organizational structure and job responsibilities. By means of
systematic review integration and optimization of the Company's organizational structure
and job responsibilities and conducting full-staff competitive appointments for functional
71Full Text of 2025 Annual Report of Konka Group Co. Ltd.
departments business units and directly affiliated institutions under the new structure the
Company completed the adjustment of the organizational structure and created an
intensive efficient modern internal control management organizational structure with clear
rights and responsibilities providing organizational guarantees for the implementation of
the internal control system.
3) Improvement of the internal control system. With focus on key areas such as financial
management investment management and corporate governance the Company orderly
promoted the formulation revision and improvement of relevant rules further clarified
control standards standardized management processes and strengthened internal control
execution and process control with an aim to enhance the rationality completeness and
operability of internal control design from the source and build a full-coverage and multi-
level internal control system.
4) Enhancement of training on internal control and compliance. The Company
continuously organized senior executives business backbones and relevant employees to
carry out thematic training on internal control system learning and risk control and
compliance management continuously strengthening the awareness of all employees on
compliance risk and autonomous norms guiding all employees to consciously regulate
their own behaviors and building a solid ideological defense line for internal control
management.
5) Refinement and intelligence of the internal control system. By continuously deepening
the internal control and improving the process control and supervision and inspection
mechanisms the Company promoted the transformation of internal control management
towards refinement and intelligence effectively strengthening risk identification early
warning and disposal capabilities and significantly improving the Company's overall risk
prevention and governance efficiency.XIV. Rectification of Issues Identified by Self-inspection in the Special Action on the
Governance of Listed Companies
The Company has completed the self-inspection in accordance with the relevant
requirements of the CSRC and has rectified the issues identified during the self-inspection.XV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of
enterprises required to disclose environmental information by law
√ Yes □ No
Number of enterprises on the list of enterprises required to
disclose environmental information by law 2
No. Name of enterprise Search index for the Environmental InformationDisclosure Report
72Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Department of Ecology and Environment of Guangdong
1 Guangdong Xingda Hongye Electronics Co. Ltd. Province (https://www-
app.gdeei.cn/gdeepub/front/dal/dal/newindex)
Department of Ecology and Environment of Guangdong
2 Boluo Konka Precision Technology Co. Ltd. Province (https://www-
app.gdeei.cn/gdeepub/front/dal/dal/newindex)
XVI. Social Responsibilities
For details please refer to the 2025 Environmental Social and Corporate Governance
(ESG) Report disclosed by the Company on Cninfo (http://www.cninfo.com.cn) on April 29
2026.
XVII. Consolidation and Expansion of Poverty Alleviation Outcomes and Rural
Revitalization
In 2025 the Company actively fulfilled its social responsibilities and took various measures
to boost rural revitalization. In terms of consumption-based assistance the Company
participated in the "Central SOE Consumption-based Assistance for Spring Festival"
program and special procurement activities for the Mid-Autumn Festival and National Day
purchasing a total of RMB 173100 of agricultural and sideline products throughout the
year to support the industrial development of poverty-stricken areas with concrete actions.In terms of educational assistance on February 20 2025 the Company held a symposium
at the Sansui County Model Kindergarten in Guizhou Province under the "From Afar To
the Future" pairing assistance program for students in need in Sansui and Tianzhu
counties of Qiandongnan Prefecture Guizhou Province. The Company made donations to
the assisted students conveying immersive care from afar. In terms of employment
assistance the Company employed a total of 236 workers from former national-level
poverty-stricken counties and former Central Soviet Areas throughout the year providing
stable employment opportunities for the labor force in poverty-stricken areas.
73Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Section V Important Matters
I Fulfillment of Commitments
1. 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 end of the Reporting Period
√ Applicable □ Not Applicable
Reason Party makingcommitment Type Content Date Term Performance
Panshi
Commitment Runchuang
made in the (Shenzhen)
Lock-up period for the As of now the
acquisition Information
shares of the listed company
Management Restrictions on acquired through this
April commitment
report or report equity rights transfer is subject to the 30
No fixed
term party has strictly
on changes in Co. Ltd. and relevant laws and 2025 fulfilled its
equity Commotra regulations. commitments.Company
Limited
Panshi
Runchuang
Commitment (Shenzhen)
made in the Information The To ensure the independence As of now the
acquisition Management independence of of the listed company in April No fixed commitment
report or report Co. Ltd. and the listed terms of personnel assets 30 party has strictly
on changes in China company finance organization and 2025
term fulfilled its
equity Resources business. commitments.Company
Limited
1. During the period when
Panshi Runchuang or its
related parties control the
listed company Panshi
Runchuang will take
necessary and possible
measures in accordance
with the law to avoid any
business or activity
Commitment Panshi conducted by Panshi
made in the Runchuang Runchuang and any of its As of now the
acquisition (Shenzhen) Avoidance of April commitment
report or report Information horizontal
controlled companies No fixed
(excluding the listed 30 term party has strictly
on changes in Management competition company and any of its 2025 fulfilled its
equity Co. Ltd. controlled companies) that commitments.constitutes horizontal
competition with the main
business of the listed
company and any of its
controlled companies.
2. If Panshi Runchuang or
any of its controlled
companies (excluding the
listed company and any of
74Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Reason Party makingcommitment Type Content Date Term Performance
its controlled companies)
obtains a business
opportunity that constitutes
substantial horizontal
competition with the main
business of the listed
company (excluding minority
equity financial investment
opportunities that are the
same as or similar to the
main business of the listed
company but do not
constitute control or
significant influence) Panshi
Runchuang will notify the
listed company in writing. If
the listed company provides
a written reply expressing its
willingness to accept the
business opportunity within
30 days upon receipt of
such notice Panshi
Runchuang or any of its
controlled companies
(excluding the listed
company and its controlled
companies) will endeavor to
facilitate the provision of
such business opportunity to
the listed company first on
reasonable and fair terms
and conditions.If the regulatory authority
deems that the
aforementioned business
engaged in by the
commitment party or any
other subordinate controlled
by the commitment party
constitutes horizontal
competition with the main
business of the listed
company the commitment
party will resolve the issue
by means permitted by laws
and regulations (including
but not limited to transfer
entrusted operation
entrusted management
leasing contracting etc.).Commitment China 1. By the date of issuance of
made in the Resources Avoidance of this commitment letter April Five
acquisition Company horizontal JCET Group Co. Ltd. an 30competition years
In progress
report or report Limited enterprise controlled by 2025
on changes in China Resources was
75Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Reason Party makingcommitment Type Content Date Term Performance
equity involved in business overlap
or potential competition with
the Company's subsidiary -
Konka ChipCloud
Semiconductor Technology
(Yancheng) Co. Ltd. - in
terms of external packaging
and testing services. China
Resources undertakes to
within five years after the
completion of this
transaction resolve the
business overlap and
potential competition
between China Resources
and its controlled companies
(excluding the listed
company and its controlled
companies) and Konka
ChipCloud Semiconductor
Technology (Yancheng) Co.Ltd. a subsidiary of the
listed company through
legal procedures including
but not limited to
trusteeship asset
restructuring business
cessation by one party
product structure
adjustment or joint venture
establishment in a bid to
comply with regulatory
requirements concerning
horizontal competition.
2. Except for the
circumstances mentioned
above and those under
Article 3 herein during the
period when China
Resources indirectly controls
the listed company China
Resources will take
necessary and possible
measures in accordance
with the law to avoid any
business or activity
conducted by China
Resources or any of its
controlled companies
(excluding the listed
company and its controlled
companies) that constitutes
horizontal competition with
the main business of the
listed company and its
76Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Reason Party makingcommitment Type Content Date Term Performance
controlled companies.
3. If China Resources or any
of its controlled companies
(excluding the listed
company and its controlled
companies) obtains a
business opportunity that
constitutes substantial
horizontal competition with
the main business of the
listed company (excluding
minority equity financial
investment opportunities
that are the same as or
similar to the main business
of the listed company but do
not constitute control or
significant influence) China
Resources will notify the
listed company in writing. If
the listed company provides
a written reply expressing its
willingness to accept the
business opportunity within
30 days upon receipt of
such notice China
Resources or any of its
controlled companies
(excluding the listed
company and its controlled
companies) will endeavor to
facilitate the provision of
such business opportunity to
the listed company first on
reasonable and fair terms
and conditions.If the regulatory authority
deems that the
aforementioned business
engaged in by the
commitment party or any
other subordinate controlled
by the commitment party
constitutes horizontal
competition with the main
business of the listed
company the commitment
party will resolve the issue
by means permitted by laws
and regulations (including
but not limited to transfer
entrusted operation
entrusted management
leasing contracting etc.).Commitment Panshi To Regulate The commitment party or April No fixed As of now the
77Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Reason Party makingcommitment Type Content Date Term Performance
made in the Runchuang Related-Party any of its controlled 30 term commitment
acquisition (Shenzhen) Transactions companies will minimize and 2025 party has strictly
report or report Information regulate related-party fulfilled its
on changes in Management transactions with the listed commitments.equity Co. Ltd. and company. If such
China transactions are
Resources unavoidable the
Company commitment party will strictly
Limited regulate the related-party
transactions with the listed
company in accordance with
the relevant provisions of
the Company Law of the
People's Republic of China
the Securities Law of the
People's Republic of China
and other laws regulations
normative documents and
the Articles of Association of
Konka Group Co. Ltd.without prejudice to the
legitimate rights and
interests of the listed
company and its minority
shareholders.Whether the
commitment is Yes
fulfilled on time
If the
commitments
are not fulfilled
within the time
limit the
specific
reasons for the Not applicable
unfinished
performance
and the next
work plan shall
be specified
2. In case that any earnings forecast for an asset or project and the Reporting
Period was still within the forecast period the reasons why the forecast has been
reached for the Reporting Period was clarified.□ Applicable √ Not applicable
3. The Company involves performance commitments.
□ Applicable √ Not applicable
II. Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□ Applicable √ Not applicable
78Full Text of 2025 Annual Report of Konka Group Co. Ltd.
None.III. Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
None.IV. Explanations Given by the Board of Directors Regarding the Latest “ModifiedAudit Report” on the Financial Statements
□ Applicable √ Not applicable
V. Explanations Given by the Board of Directors and the Independent Directors (if
any) Regarding the Independent Auditor's “Modified Audit Report” on the Financial
Statements of the Reporting Period
√ Applicable □ Not Applicable
ShineWing Certified Public Accountants (Special General Partnership) audited the
Company's 2025 annual financial report and issued an unqualified audit report with a
paragraph on material uncertainty related to going concern. The Board of Directors and
the independent directors of the Company provide the following explanations regarding the
unqualified audit report with a paragraph on material uncertainty related to going concern
for 2025 issued by ShineWing Certified Public Accountants (Special General Partnership):
(I) We agree with the unqualified audit report with a paragraph on material uncertainty
related to going concern issued by ShineWing Certified Public Accountants for the
Company which objectively and fairly reflects the Company's financial and operational
conditions.(II) The matters involved in the above-mentioned emphasis do not fall under the
circumstances of significant violation of accounting standards systems and relevant
information disclosure norms as stipulated in the Rules for Information Disclosure and
Compilation of Companies Offering Securities to the Public No. 14 - Non-Standard
Unqualified Audit Opinions and the Handling of Matters Involved by the China Securities
Regulatory Commission.(III) In response to the above-mentioned emphasis the Company will actively urge the
Management to take effective measures to eliminate the adverse effects as soon as
possible and safeguard the legitimate rights and interests of the Company and its
shareholders.(IV) The matters involved in the non-standard unqualified opinion will not have an impact
on the Company's financial conditions and operation results in 2025.(V) In 2026 the Company will focus on optimizing and reshaping existing businesses and
enhancing the efficiency across the entire chain from R&D production supply sales and
service through lean management to significantly reduce existing businesses. Meanwhile
79Full Text of 2025 Annual Report of Konka Group Co. Ltd.
the Company will strive for innovative engines for high-quality development through
analysis of emerging industries under the "9+6" strategies.VI. YoY Changes in Accounting Policies Estimates or Correction of Material
Accounting Errors
√ Applicable □ Not Applicable
Unit: RMB
Amount of last year Amount of the current year
Account title Before Before Adjustment process
adjustment Restated adjustment Restated
Because it was difficult for
underlying customers to
collect payments the
impairment provision for
accounts receivable from
individual customers was not
Accounts 145892306 1315222656. fully provisioned. In 2022 the10869290 108692901
receivable 6.70 92 12.15 2.15 impairment provision foraccounts receivable from
individual customers was
retrospectively fully
provisioned and the bad debt
provision made in 2023 and
2024 was retrospectively
adjusted simultaneously.Formed due to the
retrospective events of equity
Long-term equity 472836085 5921501427. 20260381 202603815 repurchases related to
investments 3.49 49 56.99 6.99 Chongqing Ypfun Technology
Co. Ltd. and Anhui Kaikai
Shijie E-commerce Co. Ltd.Impact of retrospective
Total assets 304127639 31462204064 22350904 223509042 adjustment of accounts00.34 .56 261.25 61.25 receivable and long-term
equity investments.Formed due to the
retrospective events of equity
Other payables 167615488 3502796381. 65651007 656510078 repurchases related to7.59 63 88.16 8.16 Chongqing Ypfun Technology
Co. Ltd. and Anhui Kaikai
Shijie E-commerce Co. Ltd.Total Liabilities 281781122 30004753710 28211299 28211299316.55 .59 370.27 70.27 Same as above.Due to the impact of
Undistributed - - - - retrospective adjustment of179750689 2574708227. 15157108 151571080profits financial expenses credit8.08 90 084.70 84.70 impairment loss and asset
impairment loss.Total equity
attributable to 236966883 1592467508. - -60830716 608307168
owners of the 8.10 28 Same as above.89.95 9.95
parent company
80Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount of last year Amount of the current year
Account title Before Before Adjustment process
adjustment Restated adjustment Restated
Total owners’ 223465168 1457450353. - -58603951 586039510
equity 3.79 97 Same as above.09.02 9.02
Total liabilities
and owners’ 304127639 31462204064 22350904 22350904200.34 .56 261.25 61.25 Same as above.equity
Formed due to the insufficient
Cost of sales 106260351 10861823991 94307179 94307179183.90 .19 18.20 8.20 provision of patent fee fromretrospective adjustment.Formed due to the
retrospective events of equity
Finance costs 581022498. 714987086.24 804216933 804216933. repurchases related to12 .89 89 Chongqing Ypfun Technology
Co. Ltd. and Anhui Kaikai
Shijie E-commerce Co. Ltd.Because it was difficult for
underlying customers to
collect payments the
impairment provision for
accounts receivable from
individual customers was not
Credit - - - - fully provisioned. In 2022 the418711979. 15205992 152059923impairment loss 405967710.66 impairment provision for06 33.40 3.40 accounts receivable from
individual customers was
retrospectively fully
provisioned and the bad debt
provision made in 2023 and
2024 was retrospectively
adjusted simultaneously.Due to the impact of
retrospective events of equity
repurchases related to
- Chongqing Ypfun TechnologyAsset impairment - -926456808. - 61761843 617618430 Co. Ltd. and Anhui Kaikailoss 21 999416234.21 08.20 8.20 Shijie E-commerce Co. Ltd.the corresponding long-term
equity investment impairment
loss was retrospectively
provisioned in 2024.Due to the impact of
- - - - retrospective adjustment of
Operating profit 368551343 4115481990. 10507913 105079139 financial expenses credit
7.20 21 987.10 87.10 impairment loss and asset
impairment loss.----
Total profits 381458644 4244554997. 10944373 109443735 Same as above.
4.6162563.8363.83
----
Net Profit 388413877 4314107326. 12237613 122376135 Same as above.
3.6162519.8519.85
Net profit - - - - Same as above.
81Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount of last year Amount of the current year
Account title Before Before Adjustment process
adjustment Restated adjustment Restated
attributable to 329558866 3725557221. 12582399 125823998
owners of the 8.77 78 856.80 56.80
parent company
VII. YoY Changes in the Scope of the Consolidated Financial Statements
√ Applicable □ Not Applicable
Please refer to (6) Changes in the scope of consolidated financial statements for the
Reporting Period of 2. Revenue and Costs of IV. Core Business Analysis in Section III
Discussion and Analysis of the Management of this Report for details.VIII. Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor ShineWing Certified Public Accountants (SpecialGeneral Partnership)
The Company’s payment to the domestic independent auditor
(RMB’0000) 200
Length of consecutive years the domestic independent auditor
has provided audit service for the Company 7 years
Names of the certified public accountants from the domestic
independent auditor writing signatures on the auditor’s report Gu Fanqiu Liu Lihong
Length of consecutive years the certified public accountants have
provided audit service for the Company 1 year 4 years
Name of the overseas independent auditor (if any) Not applicable
The Company’s payment to the overseas independent auditor
(RMB10000) (if any) 0
How many consecutive years the overseas independent auditor
has provided audit service for the Company (if any) Not applicable
Name of the certified public accountants from the overseas
independent auditor (if any) Not applicable
Length of consecutive years the certified public accountants have
provided audit service for the Company (if any) Not applicable
Indicate by tick mark whether the independent auditor was changed for the Reporting
Period
□ Yes √ No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls
√ Applicable □ Not Applicable
The Company appointed ShineWing Certified Public Accountants (Special General
Partnership) as the internal control auditor in 2025 with RMB 700000 (tax-exclusive) of
payment for the internal control audit.IX. Possibility of Delisting after Disclosure of this Report
√ Applicable □ Not Applicable
82Full Text of 2025 Annual Report of Konka Group Co. Ltd.
As audited and confirmed by ShineWing Certified Public Accountants (Special General
Partnership) hired by the Company the audited net assets attributable to the parent
company of the Company for 2025 were RMB -6083071689.95. According to the
provisions of Item (II) of Article 9.3.1 of the Rules Governing the Listing of Stocks on the
Shenzhen Stock Exchange a delisting risk warning is imposed on the stock trading of a
listed company if it experiences the circumstance that "the audited net assets at the end of
the most recent accounting year are negative".The lower of the audited net profit before and after deducting non-recurring gains/losses of
the Company for the last three accounting years was negative and ShineWing Certified
Public Accountants (Special General Partnership) issued an unqualified audit report with a
paragraph on material uncertainty related to going concern for the Company's 2025 annual
financial report. According to the provisions of Item (VII) of Article 9.8.1 of the Rules
Governing the Listing of Stocks on the Shenzhen Stock Exchange other risk warnings are
imposed on the stock trading of a listed company if it experiences the circumstance that
"the lower of the net profit before and after deducting non-recurring gains/losses for the
last three accounting years is negative and the audit report for the most recent accounting
year shows that there is uncertainty in the company's ability to continue as a going
concern".In summary since the Company touched upon the circumstances of imposing a delisting
risk warning and other risk warnings on its stock trading simultaneously a delisting risk
warning and other risk warnings have been imposed on the Company's shares since April
30 2026. The Company's stock abbreviations have been changed from "Konka Group-A"
and "Konka Group-B" to "*ST Konka Group-A" and "*ST Konka Group-B" respectively
while the stock codes remain "000016" and "200016". For more details please refer to the
Indicative Announcement on the Imposition of a Delisting Risk Warning and Other Risk
Warnings on the Company's Stock and the Suspension and Resumption of Stock Trading
disclosed by the Company on April 29 2026 on designated information disclosure media
Securities Times China Securities Journal and Cninfo (http://www.cninfo.com.cn).X. Insolvency and Reorganization
□ Applicable √ Not applicable
None.
83Full Text of 2025 Annual Report of Konka Group Co. Ltd.
XI. Major Legal Matters
√ Applicable □ Not Applicable
Amount Whether an Progress of Results and Execution of
Basic information of litigation (arbitration) involved estimated litigation influence of litigation Disclosure
Index to
disclosed
(RMB10000) liability is (arbitration) litigation (arbitration) daterecognized (arbitration) trial judgment information
As the bills held by the Company failed to be
paid upon maturity the Company filed a The case is in the The case is in the The case is in the
lawsuit with the court requesting the latter to process of process of process of
order Wuhan Jialian Agricultural Technology 20000 No application for application for application for September
Development Co. Ltd. to pay the aforesaid resumption of resumption of resumption of 19 2020
bills and corresponding interest to the enforcement. enforcement. enforcement.Company.Due to a purchase and sales contract
dispute Sichuan Shuwu Guangrun Logistics
Co. Ltd. filed a lawsuit against the
Company’s subsidiary Dongguan Konka 12283.46 Yes The case has The case has been The case has June 1
Electronics Co. Ltd. requesting the latter to been closed. closed. been closed. 2023
make payment for goods and pay liquidated http://www.c
damages. ninfo.com.c
Due to the equity transfer dispute Alibaba n
(China) Network Technology Co. Ltd. sued
Anhui Kaikai Vision E-commerce Co. Ltd.and the Company requesting that the 12488.79 No The case has The case has been The case has April 15
defendants be ordered to pay the equity been closed. closed. been closed. 2025
investment amount and interest and bear
the attorney's fees and other costs.Due to a trademark license agreement The case has
dispute Shenzhen Konka Jiapin Intelligent been closed.Electrical Apparatus Technology Co. Ltd. (The lawsuit was
sued the Company requesting a court order The case has The case has been withdrawn by April 15
for the defendant to compensate for 30002.91 No been closed. closed. Shenzhen Konka 2025
damages from contract termination other Jiapin Intelligent
losses refund the security deposit and bear Electrical
the litigation costs. Apparatus
Technology Co.
84Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount Whether an Progress of Results and Execution ofestimated influence of litigation Disclosure Index toBasic information of litigation (arbitration) involved liability is litigation(RMB10000) (arbitration) litigation (arbitration) date
disclosed
recognized (arbitration) trial judgment information
Ltd.)
Due to a right of recourse dispute the
Company sued Zhongfu Tiangong
Construction Group Co. Ltd. He Junsheng
China Nuclear Weiye Construction
Investment Co. Ltd. Zhongfu Jianye 11693.78 No The case is in The case is in The case is in April 15
Holdings Limited and Zhonghong Jianye execution. execution. execution. 2025
(Beijing) Technology Co. Ltd. demanding
the repayment of the principal and overdue
interest.Due to a sales contract dispute Heilongjiang
Xinda New Material Co. Ltd. sued Anhui
Konka Electronics Co. Ltd. a subsidiary of
the Company requesting a court order for 13444.02 No
The case has The case has been The case has April 15
been closed. closed. been closed. 2025
the defendant to pay the outstanding
payment for goods and relevant interest.Due to a tort liability dispute Shenzhen
Shuwu Industrial Co. Ltd. sued Shenzhen
Qianhai Xinfeng Supply Chain Management
Co. Ltd. and Dongguan Konka Electronics
Co. Ltd. a subsidiary of the Company 3779.97 No The case has The case has been The case has April 15
requesting a court order for the defendants to been closed. closed. been closed. 2025
jointly compensate for the loss of goods loss
from price difference and pay for the loss
from fund occupation and litigation costs.The Company sued Jiangxi High
Transparent Substrate Material Technology
Co. Ltd. Jiangxi Xinzixin Real Estate Co. The case is The case is under The case is
Ltd. Xiong Muzhi Zhu Qingming and Zeng 2348.4 No under thesecond-instance the second-
under the July 31
Xiaohong over a right of recourse dispute
trial. instance trial.second-instance 2025
requesting a court order for the defendants to trial.repay the plaintiff for the finance lease
payments interest and legal fees incurred
85Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount Whether an Results and Execution of
Basic information of litigation (arbitration) involved estimated
Progress of
litigation influence of litigation Disclosure
Index to
(RMB10000) liability is litigation (arbitration) date
disclosed
recognized (arbitration) (arbitration) trial judgment information
from fulfilling the payment obligations under
the Finance Lease Agreement (Gui Zu
(2019) Nian Zu Zi No. (026)).
The Company sued Jiangxi High
Transparent Substrate Material Technology
Co. Ltd. Jiangxi Xinzixin Real Estate Co.Ltd. Xiong Muzhi Zhu Qingming and Zeng
Xiaohong over a right of recourse dispute The case is The case is under The case is
requesting a court order for the defendants to 2348.4 No under the the second- under the July 31
repay the plaintiff for the finance lease second-instance instance trial. second-instance 2025
payments interest and legal fees incurred trial. trial.from fulfilling the payment obligations under
the Finance Lease Agreement (Gui Zu
(2019) Nian Zu Zi No. (028)).
Zhongkang Storage Technology Co. Ltd. a
subsidiary of the Company sued Tianxiang
Technology Limited Chen Lifa Zeng
Zhaohao and Xiao Fangbin over a contract The case is The case is under The case is November
dispute requesting a court order for the 4300.99 No under the first- the first-instance under the first- 26 2025
defendants to pay the outstanding payment instance trial. trial. instance trial.for goods and assume joint and several
liability for repayment.Nantong Construction Group Co. Ltd. sued
Nantong Konka Technology Industrial Park
Operation Management Co. Ltd. Nantong
Haimen Ronghui Real Estate Co. Ltd. the
Company and Shanghai Rongzhen The case is The case is under The case is November
Enterprise Management Co. Ltd. over a 9900.00 No under the first- the first-instance under the first- 26 2025
construction contract dispute requesting a instance trial. trial. instance trial.court order for the defendants to pay the
construction fee and assume joint and
several liability for repayment.Nanjing Jiakang Venture Capital Partnership 4025.50 No The case has The case has been The case has November
86Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount Whether an Progress of Results and Execution of
Basic information of litigation (arbitration) involved estimated litigation influence of litigation Disclosure
Index to
(RMB10000) liability is (arbitration) litigation (arbitration) date
disclosed
recognized (arbitration) trial judgment information
(Limited Partnership) sued the Company and been closed. closed. been closed. 26 2025
the third party Hefei Kangxinwei Storage
Technology Co. Ltd. over an equity transfer
dispute requesting a court order for the
defendants to pay the equity price and bear
the litigation costs.Sichuan Yisheng Construction Group Co.Ltd. sued Yibin Konka Technology Park
Operation Co. Ltd. a subsidiary of the The case is The case is under The case is November
Company over a construction contract 2806.10 No under the first- the first-instance under the first- 26 2025
dispute requesting a court order for the instance trial. trial. instance trial.defendant to pay the construction fee.Shenzhen Sansen Decoration Group Co.Ltd. sued Shenzhen Konka Semiconductor
Technology Co. Ltd. and Chongqing Konka
Technology Co. Ltd. both subsidiaries of the The case is The case is under The case is
Company over a construction contract 2560.73 No under the first- the first-instance under the first- November
dispute requesting a court order for the instance trial. trial. instance trial. 26 2025
defendants to pay the construction fee and
assume joint and several liability for
repayment.Hebei Kangjiatong Technology Co. Ltd. a
subsidiary of the Company sued Shenzhen
Junxing Communication Technology Ltd.Herewin Technology Group (HK) Co. Ltd.Zeng Jiankai Zhong Yuhua Hengyang The case is The case is under The case is
Yancheng Hotel Co. Ltd. Hengyang 113975.84 No under the first- the first-instance under the first- March 28
Chaolian Real Estate Co. Ltd. Anhui Baolin instance trial. trial. instance trial. 2026
Industrial Co. Ltd. Zhong Yuekun and
Guizhou Chuanglian Technology Energy Co.Ltd. over a contract dispute requesting a
court order for the defendants to pay the
outstanding payment for goods and assume
87Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount Whether an Progress of Results and Execution of Index to
Basic information of litigation (arbitration) involved estimatedliability is litigation
influence of litigation Disclosure
(RMB10000) (arbitration) litigation (arbitration) date
disclosed
recognized (arbitration) trial judgment information
joint and several liability for repayment.The Company sued Guangdong Nanfang
Aishi Entertainment Technology Co. Ltd.Shenzhen Dahua IoT M&A Fund
Management Partnership (Limited
Partnership) Shenzhen Ruibao Lanyuan
Investment Partnership (Limited The case is The case is under The case is
Partnership) Zhongshan Weiyuan Innovation 16747.24 No under the first- the first-instance under the first- March 28
Investment Fund Management Center instance trial. trial. instance trial. 2026
(Limited Partnership) and Fuzhou Dahua
Intelligent Technology Co. Ltd. over a
contract dispute requesting a court order for
the defendants to pay for the equity and
assume liability for compensation.Shenzhen Konka Electronics Technology
Co. Ltd. a subsidiary of the Company sued
Gome Custom (Tianjin) Home Appliance Co.Ltd. and Gome Intelligence Technology Co. The case is The case is under The case is
Ltd. over a sales contract dispute requesting 4007.29 No under the first- the first-instance under the first-
March 28
a court order for the defendants to pay the instance trial. trial. instance trial.
2026
outstanding payment for goods and assume
joint and several liability for repayment.Due to a loan contract dispute Sichuan
Shuwu Guangrun Logistics Co. Ltd. sued
Shenzhen Qianhai Xinfeng Supply Chain
Management Co. Ltd. and Dongguan Konka The case is The case is under The case is10647.90 No under the first- the first-instance under the first- March 28Electronics Co. Ltd. a subsidiary of the 2026
Company requesting a court order for the instance trial. trial. instance trial.defendants to pay the contract amount and
interest.Longxin Construction Group Co. Ltd. sued The case is The case is under The case is March 28
Nantong Kanghai Technology Industry 8000.00 No under the first- the first-instance under the first-
Development Co. Ltd. a subsidiary of the instance trial. trial. instance trial.
2026
88Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount Whether an Results and Execution of
Basic information of litigation (arbitration) involved estimated
Progress of
litigation influence of litigation Disclosure
Index to
(RMB10000) liability is (arbitration) litigation (arbitration) date
disclosed
recognized (arbitration) trial judgment information
Company over a construction contract
dispute requesting a court order for the
defendant to pay the construction fee and
interest.
89Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Remarks: The court or arbitration institution ruled in favor of the Company in the following
cases and the rulings are currently being implemented. For details of the cases please
refer to the Announcement on Large-amount Pending Litigation and Arbitration
(Announcement No.: 2019-63) disclosed by the Company on June 25 2019 the
subsequent Announcement on Cumulative Litigation and Arbitration (Announcement No.:
2020-97 2021-48 2021-101 2022-89 2023-37 2023-39 2025-36 2025-67) disclosed on
September 19 2020 June 1 2021 December 1 2021 November 24 2022 June 1 2023
June 22 2023 April 15 2025 and July 31 2025 respectively as well as the regular
reports of the Company: 1. For notes not paid at maturity the Company filed a lawsuit with
the court requesting that China Energy Electric Fuel Co. Ltd. China Energy (Shanghai)
Industrial Co. Ltd. Shanghai Nengping Industrial Co. Ltd. and Shenzhen Qianhai
Baoying Commercial Factoring Co. Ltd. pay the notes and the corresponding interest to
the Company; 2. Due to the unpaid notes due the Company filed a lawsuit with the court
requesting that CEFC Shanghai International Group Limited and Tianjin International
Trade Petrochemical Co. Ltd. be ordered to pay the notes and corresponding interest to
the Company; 3. Due to the outstanding notes matured the Company filed a lawsuit with
the court requesting that CEFC Shanghai International Group Limited Qingdao Bonded
Zhongshe International Trade Co. Ltd. and Shenzhen Qianhai Benniu Agricultural
Technology Co. Ltd. be ordered to pay the notes and corresponding interest to the
Company; 4. Since the bills were not paid upon maturity Konka Electronic Material
Technology (Shenzhen) Co. Ltd. (formerly known as Konka Commercial Factoring
(Shenzhen) Co. Ltd.) filed a lawsuit with the court requesting an order for Tahoe Group
Co. Ltd. Fuzhou Taijia Industrial Co. Ltd. and Xiamen Lianchuang Microelectronics Co.Ltd. to pay Konka Factoring the amount of the bills and the corresponding interest; 5.Since the notes were not repaid when due the Company filed a lawsuit with the court
requesting that Hefei Huajun Trading Co. Ltd. and Wuhan Jialian Agricultural Science and
Technology Development Co. Ltd. be ordered to pay the notes and corresponding interest
to the Company; 6. Due to disputes over logistics contracts the Company's subsidiary
Anhui Konka Electronics Co. Ltd. sued the freight forwarding companies Shanghai Likai
Logistics Co. Ltd. Shenzhen Branch and Shanghai Likai Logistics Co. Ltd. demanding
them to bear the responsibility for compensation for losses; 7. Due to a contract dispute
the Company's subsidiary Shenzhen Nianhua Enterprise Management Co. Ltd. filed an
arbitration application requesting the Respondent Fang Xianglong and Jiang Yan to pay
the corresponding annual profit compensation and fund occupation fee; 8. Due to a
dispute over the payment for goods the Company's subsidiary Hong Kong Konka Co. Ltd.filed an arbitration application with the Shenzhen Court of International Arbitration
90Full Text of 2025 Annual Report of Konka Group Co. Ltd.
requiring the respondent MAKENA ELECTRONIC (HONG KONG) COMPANY LIMITED to
pay the payment for goods and liquidated damages; 9. Due to a dispute over the purchase
and sales contract of international goods the Company's subsidiary Anhui Konka
Electronics Co. Ltd. sued MAKENA ELECTRONIC (HONG KONG) COMPANY LIMITED
requesting that the respondent be ordered to pay the applicant for the goods and the
interest on overdue payment; 10. Due to a dispute over repurchase the Company sued
Luo Zaotong Luo Jingxia Luo Zongyin Luo Zongwu and Shenzhen Yaode Technology
Co. Ltd. requiring an order to pay the share repurchase and interest. 11. Due to a
contract dispute the Company filed a lawsuit with the Intermediate People's Court of
Zhengzhou requiring Henan Radio and Television Network Co. Ltd. to take delivery of the
goods according to the contract and pay the payment for goods interest and liquidated
damages; 12. Due to a contract dispute Shenzhen Konka Unifortune Technology Co. Ltd.a subsidiary of the Company sued Shenzhen Yaode Technology Co. Ltd. Dongsheng
Xinluo Technology (Shenzhen) Co. Ltd. Shenzhen Hongyao Dingsheng Investment
Management Co. Ltd. Shenzhen Xiangrui Yingtong Investment Management LP Luo
Jingxia Luo Zongwu Luo Zongyin Luo Zaotong and Luo Saiyin demanding payment of
goods and liquidated damages; 13. Due to trademark infringement and unfair competition
the Company sued Fu'an Xinshang Electronics Co. Ltd. Fujian Zhaoguan Industry and
Trade Co. Ltd. Jinhua Konka Medical Equipment Factory and Wang Jun requesting an
order to stop the infringement and compensate for the loss; 14. Due to commission
contract dispute Anhui Konka Electronics Co. Ltd. a subsidiary of the Company sued
Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Shantou Meisen Technology Co. Ltd.Lin Yuanqin Huang Ruirong and Jiangsu East China Hardware City Co. Ltd. requesting
an order to terminate the contract return the payment for goods and pay liquidated
damages with priority in compensation for the mortgaged property; 15. Due to commission
contract dispute the Company's subsidiary Anhui Konka Electronics Co. Ltd. sued
Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd.Lin Yuanqin Huang Ruirong and Jiangsu East China Hardware City Co. Ltd. requesting
an order to terminate the contract return the payment for goods and pay liquidated
damages with priority in compensation for the mortgaged property; 16. Due to a dispute
over the loan contract the Company sued Yantai Kangyue Investment Co. Ltd.requesting that the defendant be ordered to repay the loan and interest; 17. Due to the
equity repurchase dispute Shenzhen Nianhua Enterprise Management Co. Ltd. a
subsidiary of the Company sued Fang Xianglong and Jiang Yan requesting to repurchase
the equity and pay the repurchase price; 18. Due to purchase and sales contract dispute
Sichuan Konka Intelligent Terminal Technology Co. Ltd. a subsidiary of the Company
91Full Text of 2025 Annual Report of Konka Group Co. Ltd.
sued Shenzhen Junxing Communication Technology Co. Ltd. Shenzhen Hongxing
Fengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd.Liuyang Huaichuan Heyuan Villa Co. Ltd. Zeng Jiankai and Zhong Yuhua for payment of
goods and liquidated damages which is under execution; 19. Due to contract disputes
Konka Telecommunications Technology Co. Ltd. a subsidiary of the Company sued
Hong Kong Junxing Electronics International Limited Zeng Jiankai and Zhong Yuhua
requesting payment of goods and liquidated damages; 20. Due to a commission contract
dispute 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 Commerce & Trade Plaza Real Estate
Development (Huizhou) Co. Ltd. requiring an order to terminate the contract and them
return the payment for goods pay liquidated damages and give priority to the mortgaged
property; 21. Due to a dispute over an entrustment contract Hainan Konka Material
Technology Co. Ltd. a subsidiary of the Company sued Shantou Meisen Technology Co.Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Jiangsu East China Hardware
City Co. Ltd. requesting an order to terminate the contract and the defendants return the
payment for goods pay liquidated damages and give priority to compensation from the
mortgaged property; 22. Due to a dispute over a purchase and sales contract Dongguan
Konka Electronics Co. Ltd. a subsidiary of the Company filed a lawsuit with the People's
Court of Nanshan District Shenzhen requesting the latter to order 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. Huang Zhihao to pay the overdue payment and corresponding liquidated damages;
23. Due to a dispute over an entrustment contract Shenzhen Konka Pengrun Technology
Industry Co. Ltd. a subsidiary of the Company sued Guang'an Ouqishi Electronic
Technology Co. Ltd. Guan Hongshao Huaying Gaokede Electronic Technology Co. Ltd.Huaying Gaokelong Electronic Technology Co. Ltd. Guizhou Jiaguida Technology Co.Ltd. Sichuan Horoy Real Estate Co. Ltd. Lin Bolong and Wang Shisheng requesting the
defendants to pay the payment for goods and liquidated damages; 24. Due to a dispute
over an equity transfer contract the Company sued Langrui Haoteng Technology
Development Co. Ltd. Beijing Beida Jade Bird Safety System Engineering Technology
Co. Ltd. and Beijing Jingrui Haoteng Technology Development Co. Ltd. for payment of
the equity transfer balance; 25. Due to a dispute over the purchase and sales contract of
international goods Anhui Kangzhi Trading Co. Ltd. a subsidiary of the Company sued
B&L TECHNOLOGY CO. LIMITED requesting that the respondent be ordered to
pay the payment for goods and liquidated damages; 26. Due to a dispute over an
92Full Text of 2025 Annual Report of Konka Group Co. Ltd.
entrustment contract Henan Frestec Refrigeration Appliance Co. Ltd. a subsidiary of the
Company sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic
Electronics Co. Ltd. Lin Yuanqin Huang Ruirong Jiangsu East China Hardware City Co.Ltd. and Chuangfu Commerce & Trade Plaza Real Estate Development (Huizhou)
Co. Ltd. requesting an order to terminate the contracts return the payment for goods and
pay liquidated damages with priority in compensation for the mortgaged property; 27. Due
to a contract dispute Shenzhen Konka Unifortune Technology Co. Ltd. a subsidiary of
the Company filed a lawsuit against Shenzhen Junxing Communication Technology Co.Ltd. Gumei Electronics (Hong Kong) Technology Ltd. Shenzhen Hongxingfengda
Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Zeng
Jiankai Zhang Zhenyu Herewin Technology Group (HK) Co. Ltd. Zhang Lixia Anhui
Baolin Industrial Co. Ltd. Zeng Qingpeng and Zhong Yuhua to return the payment for
goods and pay the corresponding liquidated damages.The following cases have been disclosed in interim announcements and periodic reports
and are under trial. For details of the cases please refer to the Announcement on Large-
amount Pending Litigation and Arbitration (Announcement No.: 2019-63) disclosed by the
Company on June 25 2019 the subsequent Announcement on Cumulative Litigation and
Arbitration (Announcement No: 2020-97 2021-48 2021-101 2022-89 2023-37 2023-39
2025-36 2025-67) disclosed on September 19 2020 June 1 2021 December 1 2021
November 24 2022 June 1 2023 June 22 2023 April 15 2025 and July 31 2025
respectively as well as the Company's periodic reports: 1. The customer of Hong Kong
Konka H-BUSTER SAO PAULO INDUSTRIAE COMERCIO S.A (Brazil) encountered
insolvency and obtained approval for the judicial reorganization application from the Third
Civil Court of Cotia Sao Paulo State Brazil in May 2013. As the creditor of H-BUSTER
Hong Kong Konka submitted the claim application document and the recognized claim
amount in August 2014 was approximately USD 2.78 million; 2. Shenzhen Konka
Telecommunications Technology Co. Ltd. a subsidiary of the Company sued Liu Jie
Zhang Yinxia Ren Chunni Jiang Tianliang and Hunan Ditsing Technology Co. Ltd. over
a sales contract dispute requesting a court order for the defendants to pay the outstanding
payment for goods and assume joint and several liability for repayment; 3. Due to disputes
over international goods contracts the Company's subsidiary Jiaxin Technology Co. Ltd.sued Dingxin Electronics Technology (Hong Kong) Co. Ltd. Chen Wenhuan and Chen
Baohong requesting that the defendants be ordered to pay the purchase price and
liquidated damages; 4. Due to a dispute over an international sales of goods contract
Micro Crystal Transfer Group Ltd. sued Chongqing Konka Optoelectronics Technology Co.Ltd. (formerly known as: Chongqing Konka Optoelectronics Technology Research Institute
93Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Co. Ltd.) a subsidiary of the Company requesting payment for goods and liquidated
damages; 5. Due to a contractual dispute the Company filed a lawsuit against Zhu
Xinming Leng Sumin Gongqingcheng Jinzhuanrong Investment Management Partnership
(Limited Partnership) and Gongqingcheng Xinrui Investment Management Partnership
(Limited Partnership) requesting them to pay the performance compensation; 6. As
Jiangxi Xinxin Jian'an Engineering Co. Ltd. Jiangxi Shanshi Technology Development
Co. Ltd. and Jiangxi Zhongyi Decorative Materials Co. Ltd. failed to repay the loan and
interest to the Jiangxi Branch of China Great Wall Asset Management Co. Ltd. on time
Jiangxi Branch of China Great Wall Asset Management Co. Ltd. filed a lawsuit with the
court requesting a judgment ordering Jiangxi Xinxin Jian'an Engineering Co. Ltd. Jiangxi
Shanshi Technology Development Co. Ltd. and Jiangxi Zhongyi Decorative Materials Co.Ltd. to repay the loan of RMB 300 million liquidated damages of RMB 108000 and
interest of RMB 13.65 million and requesting that nine guarantors including Jiangxi Konka
New Material Technology Co. Ltd. Jiangxi High-transparent Substrate Material
Technology Co. Ltd. and Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. assume joint
and several liability of guarantee. 7. Due to a dispute over the contract of international
sales of goods Chongqing Konka Optoelectronics Technology Co. Ltd. (formerly known
as Chongqing Konka Optoelectronics Technology Research Institute Co. Ltd.) a
subsidiary of the Company sued Micro Crystal Transfer Group Ltd. requesting the
termination of the contract the return of the price difference and compensation for losses;
8. Zhongkang Storage Technology Co. Ltd. a subsidiary of the Company sued
Hongwang Semiconductor Co. Ltd. Li Bin and Xu Xiaoxuan over a contract dispute
requesting a court order for the defendants to pay the overdue payment for goods
liquidated damages and other fees.XII. Punishments and Rectifications
√ Applicable □ Not Applicable
Type of
Name Type Reason investigation and Conclusion (if Disclosure Index to disclosed
punishment any) date information
In June 2018 Konka Announcement on
Group Co. Ltd. sold a Receiving the
5% equity interest in Decision on
Anhui Kaikai Vision E- The CSRC took Administrative
commerce Co. Ltd. administrative A warning Regulatory
Konka which failed to meet regulatory letter was Measures from the
Group Others the conditions for measures and the issued as the December Shenzhen Bureau of
Co. Ltd. recognition of Shenzhen Stock regulatory 27 2025 the China Securities
investment income Exchange issued a measure. Regulatory
leading to inaccurate regulatory letter. Commission and the
information disclosure Regulatory Letter
in the Company's 2018 from the Shenzhen
semi-annual report. Stock Exchange
94Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Type of
Name Type Reason investigation and Conclusion (if Disclosure Index to disclosed
punishment any) date information
2025-102 disclosed
by the Company on
Cninfo
(http://www.cninfo.co
m.cn)
Announcement on
Receiving the
In June 2018 Konka Decision on
Group Co. Ltd. sold a Administrative
5% equity interest in Regulatory
Anhui Kaikai Vision E- The CSRC took Measures from the
commerce Co. Ltd. administrative A warning Shenzhen Bureau ofthe China Securities
Liu Then which failed to meet regulatory letter was
Fengxi Chairman the conditions for measures and the issued as the
December Regulatory
recognition of Shenzhen Stock regulatory 27 2025 Commission and the
investment income Exchange issued a measure. Regulatory Letter
leading to inaccurate regulatory letter. from the Shenzhen
information disclosure Stock Exchange
in the Company's 2018 2025-102 disclosed
semi-annual report. by the Company onCninfo
(http://www.cninfo.co
m.cn)
Announcement on
Receiving the
In June 2018 Konka Decision on
Group Co. Ltd. sold a Administrative
5% equity interest in Regulatory
Anhui Kaikai Vision E- The CSRC took Measures from the
commerce Co. Ltd. administrative A warning Shenzhen Bureau of
Then which failed to meet regulatory letter was the China Securities
Zhou Bin General the conditions for measures and the issued as the December Regulatory
Manager recognition of Shenzhen Stock regulatory 27 2025 Commission and the
investment income Exchange issued a measure. Regulatory Letter
leading to inaccurate regulatory letter. from the Shenzhen
information disclosure Stock Exchange
in the Company's 2018 2025-102 disclosed
semi-annual report. by the Company onCninfo
(http://www.cninfo.co
m.cn)
In June 2018 Konka Announcement on
Group Co. Ltd. sold a Receiving the
5% equity interest in The CSRC took Decision on
Anhui Kaikai Vision E- Administrative
Then administrative A warningcommerce Co. Ltd. regulatory letter was Regulatory
Li Chunlei Chief which failed to meet measures and the issued as the December Measures from theFinancial the conditions for Shenzhen Stock regulatory 27 2025 Shenzhen Bureau ofOfficer recognition of Exchange issued a measure. the China Securities
investment income regulatory letter. Regulatory
leading to inaccurate Commission and the
information disclosure Regulatory Letter
in the Company's 2018 from the Shenzhen
95Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Type of
Name Type Reason investigation and Conclusion (if Disclosure Index to disclosed
punishment any) date information
semi-annual report. Stock Exchange
2025-102 disclosed
by the Company on
Cninfo
(http://www.cninfo.co
m.cn)
Rectification
√ Applicable □ Not Applicable
After the receipt of the Decision Letter and the Regulatory Letter the Company and the
relevant personnel attached great importance to the issues in 2018 as described therein
and will make rectifications in strict accordance with the requirements of the CSRC
Shenzhen Bureau and Shenzhen Stock Exchange earnestly drawing lessons while
effectively enhancing compliance awareness. Meanwhile the Company and the relevant
personnel will on this basis strengthen the study of relevant laws regulations and
normative documents such as the Administrative Measures for the Information Disclosure
of Listed Companies and the Accounting Standards for Business Enterprises further
improve and strictly implement the financial and accounting management regulations to
regulate the Company's operation and information disclosure safeguard the interests of
the Company and all shareholders and promote the healthy stable and high-quality
development of the Company.For details please refer to the Announcement on receiving the Decision on Administrative
Regulatory Measures from the Shenzhen Bureau of the China Securities Regulatory
Commission and the Regulatory Letter from the Shenzhen Stock Exchange disclosed by
the Company on Cninfo (http://www.cninfo.com.cn).XIII. Credit quality of the Company as well as its controlling shareholder and de
facto controller
□ Applicable √ Not applicable
96Full Text of 2025 Annual Report of Konka Group Co. Ltd.
XIV. Major related-party transactions
1. Related-party transactions on daily operation
√ Applicable □ Not Applicable
As % of Obtainable
Type of Amount of Approved Over the
Relationship Content of total value market
Related related- Pricing Transaction related-party transaction approved Method of Disclosure Index to disclosed
with the related-party of all same- price for
party party principle price transaction line line or settlement date information
Company transactions type same-type
transactions (RMB’0000) (RMB’0000) not
transactions transactions
Sales of TVs
smart terminals
Under the and other
OCT Group Sales of
same de products and Market Market
and its goods and 6501.75 0.66% 10000 Not April 15No Cash
facto collection of smart pricing price applicable 2025
subsidiaries services
controller TV terminal
installation fees
and other fees
Property
Under the Purchasing
OCT Group management
same de services Market Market 6333.97 0.75% 15000 Not April 15and its utilities housing No Cash
facto and pricing price applicable 2025
subsidiaries lease services
controller products
and products
Cninfo
Sales of TVs air (http://www.cninfo.com.cn)
conditioners
washing
Selling
machines
Panshi Under the products
refrigerators
Runchuang same de and Market Market 105.76 0.01% 1500 Not OctoberPCBs smart No Cash
and related facto services to pricing price applicable 30 2025
terminals and
parties controller related
other products
parties
and provision of
leasing and other
services
Panshi Under the Purchase of Digital and other Market Market 118.77 0.01% 1000 Not OctoberRunchuang same de services products; No Cashpricing price applicable 30 2025
and related facto and insurance
97Full Text of 2025 Annual Report of Konka Group Co. Ltd.
As % of Obtainable
Type of Amount of Approved Over the
Relationship Content of total value market
Related related- Pricing Transaction related-party transaction approved Method of Disclosure Index to disclosed
with the related-party of all same- price for
party party principle price transaction line line or settlement date information
Company transactions type same-type
transactions (RMB’0000) (RMB’0000) not
transactions transactions
parties controller products property services
from related etc.parties
China
Under the
Resources
same de Deposit Market Market 51.98 2.15% 200 Not OctoberBank of Deposit interest No Cash
facto interest pricing price applicable 30 2025
Guangdong
controller
Co. Ltd.China
Under the
Resources
same de Loan Market Market Not October
Bank of Loan interest 3798.51 7.09% 4300 No Cash
facto interest pricing price applicable 30 2025
Guangdong
controller
Co. Ltd.Total -- -- 16910.74 -- 32000 -- -- -- -- --
Detailed circumstances of large-amount sales return Not applicable
The Company disclosed the Announcement on Estimated Routine Related-Party Transactions for 2025 and the Announcement on
Given the actual situation in the Reporting Period (if any)
Routine Related-Party Transactions for 2025 on April 15 2025 and October 30 2025 respectively in the Securities Times Shanghai
where an estimate had been made for the total value of
Securities News China Securities Journal and on Cninfo (http://www.cninfo.com.cn). In the Reporting Period the basis for pricing
routine related-party transactions by type to occur in the
transaction price transaction amount and settlement methods of raw materials purchased by the Company from related parties and goods
Reporting Period
sold to related parties were basically in accordance with the forecast. The total amount incurred was RMB 169.1074 million.Reason for any significant difference between the
transaction price and the market reference price (if Not applicable
applicable)
98Full Text of 2025 Annual Report of Konka Group Co. Ltd.
2. Related-Party Transactions Regarding Purchase or Sale of Assets or Equity
Interests
√ Applicable □ Not Applicable
For details please refer to the relevant contents of other major related-party transactions
in point 7 of this subsection.
3. Related-party transactions regarding joint investments in third parties
□ Applicable √ Not applicable
The Company did not engage in any related-party transactions regarding joint investments
in third parties during 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
No credits receivable from related parties
Liabilities payable to related parties
Related Relationship Beginning
Increase in Repaid in Interest in Ending
party with the
Reason for balance the currentformation period this period Interest rate this period balanceCompany (RMB’0000) (RMB’0000) (RMB’0000) (RMB’0000) (RMB’0000)
The 81091.00 81091.00 3.00% 1615.06
Former Company 50000.00 50000.00 3.00% 995.83
OCT Group controlling applied for 70000.00 70000.00 3.00% 1394.17
shareholder an entrusted
loan from it. 11447.30 11447.30 3.00% 227.99
The
Panshi Controlling Company 217000.00 3.00% 2278.50 217000.00
Runchuang shareholder applied for a
loan from it.The
CR Inc. Related Company 100000.00 100000.00 3.00% 111.67party applied for a
loan from it.Effects of liabilities with
related parties on the
Company’s operating The Company's application for loans from related parties met the needs of existing business
results and financial development and reduced the financing cost.condition
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.
99Full Text of 2025 Annual Report of Konka Group Co. Ltd.
6. Transactions with related parties by finance companies controlled by the
Company
□ Applicable √ Not applicable
The finance company controlled by the Company did not make any 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
(1) Listing and transfer of partial equity in the investee company and waiver of the right of
first refusal: the Company reviewed and approved the Proposal on Listing and Transfer of
Partial Equity of Kunshan Kangsheng Investment Development Co. Ltd. and Waiver of the
Right of First Refusal at the 37th Meeting of the Tenth Board of Directors held on
November 6 2024. To optimize the Company's asset allocation recover funds and
enhance asset liquidity the Company jointly listed and transferred its 29.4% equity in
Kunshan Kangsheng Investment Development Co. Ltd. and the 30.6% equity held by
Taizhou Overseas Chinese Town Co. Ltd. in the same company and waived its right of
first refusal for the 30.6% equity listed and transferred by Taizhou Overseas Chinese Town
Co. Ltd. According to the Shanghai Property Transaction Contract signed by the
Company Taizhou Overseas Chinese Town Co. Ltd. and Kunshan Fangxin Equity
Investment Management Co. Ltd. the Company has received all the equity transfer price
and completed the industrial and commercial registration of changes of Kunshan
Kangsheng Investment Development Co. Ltd.
(2) The Company's application for a borrowing facility from its controlling shareholder and
its related parties: At the 2nd Meeting of the 11th Board of Directors held on August 27
2025 the Company reviewed and approved the Proposal on Applying for a Borrowing
Facility from the Controlling Shareholder and Its Related Parties. To meet the Company's
needs on daily operating capital the meeting approved the Company's application for a
total borrowing facility of RMB 2.17 billion from its controlling shareholder Panshi
Runchuang specifically for the repayment of the principal and interest of the loan from
OCT Group with a loan term of one year and an annualized interest rate of 3%; the
meeting also reviewed and approved the Company's application for a short-term revolving
borrowing facility of up to RMB 1.8 billion from China Resources Inc. for the repayment of
external interest-bearing liabilities and for working capital purposes (the facility valid for
one year from the date of the first drawdown with a single financing term not exceeding
270 days and an annualized interest rate of 3%).
(3) Change of credit enhancement measures for the Company's non-public issuance of
corporate bonds: At the 5th Meeting of the 11th Board of Directors held on November 12
100Full Text of 2025 Annual Report of Konka Group Co. Ltd.
2025 the Company reviewed and approved the Proposal on Changing the Credit
Enhancement Measures for the Company's Non-Public Issuance of Corporate Bonds.China Resources Inc. will assume the full unconditional and irrevocable joint and several
liability guarantee provided by OCT Group for the Company's outstanding RMB 3.5 billion
non-publicly issued corporate bonds and the Company's counter-guarantee liability to
OCT Group will be released accordingly. The Company intends to pay a guarantee fee to
China Resources Inc. for the actual amount of the guarantee used. The estimated
guarantee fee rate will not exceed 0.05% per annum of the actual guarantee amount used.That is calculated on a guarantee amount of RMB 3.5 billion the total guarantee fee paid
by the Company during the guarantee period will not exceed RMB 2.94 million with the
specific terms subject to the contract.
(4) The Company's non-public transfer of partial shares in Wuhan Tianyuan Group Co.
Ltd. via agreement: The Company's Board of Directors reviewed and approved the
Proposal on the Non-Public Transfer of Partial Shares in Wuhan Tianyuan Group Co. Ltd.by Agreement at the 6th Meeting of the 11th Board of Directors on November 28 2025
and at the 6th Extraordinary General Meeting of 2025 on November 28 2025. To
concentrate resources on the development of main business and accelerate the
divestment of non-core assets the meeting approved the Company's transfer of
66283973 shares of Wuhan Tianyuan Group Co. Ltd. to China Resources Asset
Management (Shenzhen) Co. Ltd. through a non-public agreement transfer at a price of
RMB 13.80 per share totaling RMB 914718827.40. Upon completion of this related-party
transaction the number of shares held by the Company in Wuhan Tianyuan Group Co.Ltd. will be reduced from 79583973 to 13300000 and China Resources Asset
Management (Shenzhen) Co. Ltd. will hold 66283973 shares in Wuhan Tianyuan Group
Co. Ltd. According to the Share Transfer Agreement officially executed between the
Company and China Resources Asset Management (Shenzhen) Co. Ltd. the Company
has received the full share transfer payment and has completed the share transfer
registration.
(5) Perpetual bond financing from the controlling shareholder: The Company's Board of
Directors reviewed and approved the Proposal of the Company on Perpetual Bond
Financing from Controlling Shareholder Panshi Runchuang (Shenzhen) Information
Management Co. Ltd. at the Sixth Meeting of the 11th Board of Directors held on
November 28 2025 and at the 6th Extraordinary General Meeting of 2025 held on
November 28 2025. To improve the capital structure risk resistance and financial stability
the meeting approved the Company's perpetual bond financing from its controlling
shareholder Panshi Runchuang with a total amount not exceeding RMB 5 billion no fixed
101Full Text of 2025 Annual Report of Konka Group Co. Ltd.
term and a floating annualized interest rate of one-year Loan Prime Rate (LPR) repriced
every 12 months excluding an interest rate step-up clause. The specific term and purpose
are subject to the contract between both parties. According to the Perpetual Bond
Agreement signed between the Company and Panshi Runchuang the RMB 5 billion
perpetual bond financing has been received.Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Date of disclosure Website ofdisclosure
Announcement on Listing Transfer of Partial Equity of Joint Stock Company
and Waiver of Right of First Refusal and Related-Party Transactions January 17 2025
Announcement on the Application for a Borrowing Facility from the Controlling
Shareholder and Its Related Parties and Related-Party Transactions August 29 2025
Announcement on the Change of Credit Enhancement Measures for the
Company's Non-Public Issuance of Corporate Bonds and Related-party November 13
Transactions 2025
Announcement on the Related-party Transaction of Non-Public Transfer of November 29 Cninfo
Partial Shares of Wuhan Tianyuan Group Co. Ltd. via Agreement 2025 (http://www.c
Announcement on the Related-Party Transaction of Perpetual Bond Financing November 29 ninfo.com.cn)
from the Controlling Shareholder 2025
Announcement on the Progress of Related-Party Transaction of Non-Public
Transfer of Partial Shares of Wuhan Tianyuan Group Co. Ltd. via Agreement December 4 2025
Announcement on the Progress of Related-Party Transaction of Perpetual December 19
Bond Financing from the Controlling Shareholder 2025
Announcement on the Completion of Transfer Registration for the Non-Public December 25
Transfer of Partial Shares of Wuhan Tianyuan Group Co. Ltd. via Agreement 2025
XV. Major Contracts and Execution thereof
1. Entrustment contracting and leases
(1) Entrustment
□ Applicable √ Not applicable
There is no custody during the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
There is no contracting during the Reporting Period.
(3) Leases
√ Applicable □ Not Applicable
Leases description
No significant leases in the Reporting Period.During the Reporting Period Konka R&D Building and Konka Guangming
Technology Center and other properties received rents of about RMB 950.3 million.Items whose gains/losses brought to the Company account for over 10% of total profit in
the Reporting Period
102Full Text of 2025 Annual Report of Konka Group Co. Ltd.
□ Applicable √ Not applicable
There are no lease items whose gains/losses brought to the Company account for over
10% of total profit in the Reporting Period.
103Full Text of 2025 Annual Report of Konka Group Co. Ltd.
2. Major guarantees
√ Applicable □ Not Applicable
Unit: RMB10000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure
Guaranteed date of the Actual Counter Guarantee for
party name announcement
Guarantee Actual occurrence guaranteed Type of Collateralline date guarantee (if any) guarantee
Guarantee Fulfilled a related party
on guarantee amount situation period or not or not
line
May 22 2023 1499 Joint liability Fourguarantee None No years No No
September 24 2248 Joint liability2024 guarantee None No Two years No No
Econ
Technology April 28 2022 50000 October 24 2024 4388 Joint liability
Co. Ltd. guarantee
None No Two years No No
January 14 2025 1499 Joint liabilityguarantee None No One year No No
January 17 2025 750 Joint liabilityguarantee None No One year No No
Jiangxi Xinxin
Jian'an 10000 December 12 10000 Joint liabilityEngineering 2016 guarantee None No No No
Co. Ltd.Jiangxi
Zhongyi
Decorative 10000 December 12 10000 Joint liability
Material Co. 2016 guarantee
None No No No
Ltd.Jiangxi
Shanshi 10000 December 12 Joint liability
Technology 2016
10000 guarantee None No No No
Development
104Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Co. Ltd.Total approved line for such guarantees in the 0 Total actual amount of such guarantees in the Reporting 2249
Reporting Period (A1) Period (A2)
Total approved line for external guarantees at the 106870 Total actual balance of external guarantees at the end 40384
end of the Reporting Period (A3) of the Reporting Period (A4)
Guarantees provided for subsidiaries by the Company
Disclosure
Guaranteed date of the Guarantee Actual Actualannouncement occurrence guaranteed Type of Collateral Counter guarantee (if Guarantee Fulfilled
Guarantee for
party name on guarantee line date amount guarantee (if any) any) period or not
a related party
or not
line
February 24 Joint liability
Anhui Konka 2025 5000 guarantee None No One year No No
Tongchuang
Electrical February 25 55000 February 25 2000 Joint liability2023 2025 guarantee None No One year No NoAppliances
Co. Ltd. April 21 2025 4000 Joint liabilityguarantee None No One year No No
Boluo Konka
Precision February 25 5000 April 29 2025 1000 Joint liabilityTechnology 2023 guarantee None No One year No No
Co. Ltd.Shenzhen
Konka
Electronics February 25 December 3 Joint liability One and a
Technology 2023
100000 2024 50000 guarantee None No half years No No
Co. Ltd.Dongguan March 24
Konka 2021 and
Electronics February 25 90000 June 23 2021 80000
Joint liability
guarantee None No Ten years No No
Co. Ltd. 2023
105Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Sichuan
Konka Smart March 24
Terminal 2021 and Joint liability Three
Technology February 25
20000 May 23 2023 4000 guarantee None None years No No
Co. Ltd. 2023
Ningbo May 9 2025 6000 Joint liability None None One and aKanghanrui No No
Electric March 22
guarantee half years
Appliances 2025
12000
July 13 2025 6000 Joint liabilityguarantee None None One year No NoCo. Ltd.August 10 Joint liability
2021 10216 guarantee None Ten years No No
October 29
20217000
Joint liability None Other shareholders ofguarantee Five years No No
Anhui Konka Anhui Konka provided
Electronics April 28 2022 33216 October 24 7000 Joint liability a counter guarantee Four
Co. Ltd. 2022 guarantee
None for the Company for years No No
22% of the guarantee
June 25 2023 5000 Joint liabilityguarantee None line. Five years No No
March 6 2025 4000 Joint liabilityguarantee None One year No No
Shenzhen Three and
Konka Circuit March 24 50000 July 19 2023 10000 Joint liability None None a half No No
Co. Ltd. 2021 guarantee years
Konka
ChipCloud July 12 2021 8278
Joint liability
guarantee None None Five years No No
Semiconductor March 24
Technology 2021 30000 November 26 Joint liability Three
(Yancheng) 2024 12100 guarantee None None years No No
Co. Ltd.Yibin Konka
Smart March 22
Technology 2025 980 May 19 2025 980
Joint liability Three
guarantee None None years No No
Co. Ltd.Chongqing March 24 55600 December 13 38000 Joint liability Fifteen
Konka 2021 2022 guarantee
None None years No No
106Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Technology
Development
Co. Ltd.Suining Konka
Hongye April 28 2022
Electronics and February 19010
January 24 19010 Joint liability
25 2023 2024 guarantee
None None 14 years No No
Co. Ltd.Xi'an
Kanghong
Technology February 25 Joint liability
Industry 2023 30000 May 26 2023 30000 guarantee None None Ten years No No
Development
Co. Ltd.Total approved line for the guarantees to subsidiaries in the 12980 Total actual amount of the guarantees to subsidiaries in 28980
Reporting Period (B1) the Reporting Period (B2)
Total approved line for the guarantees to subsidiaries at the end of 607320 Total actual balance of the guarantees to subsidiaries at 309584
the Reporting Period (B3) the end of the Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure
Guaranteed date of theannouncement Guarantee Actual occurrence
Actual Counter Guarantee for
party name line date guarantee
Type of Collateral
guarantee (if any) guarantee
Guarantee Fulfilled a related party
on guarantee amount (if any) period or not or not
line
None
Total approved line for the guarantees to subsidiaries in the 0 Total actual amount of the guarantees to subsidiaries inReporting Period (C1) the Reporting Period (C2) 0
Total approved line for the guarantees to subsidiaries at the 0 Total actual balance of the guarantees to subsidiaries at
end of the Reporting Period (C3) the end of the Reporting Period (C4) 0
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period 12980 Total actual guarantee amount in the Reporting Period 31229
(A1+B1+C1) (A2+B2+C2)
Total approved guarantee line at the end of the Reporting 714190 Total actual guarantee balance at the end of the 349968
Period (A3+B3+C3) Reporting Period (A4+B4+C4)
107Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Total guarantee balance(A4+B4+C4) as % of the Company’s net assets -57.53%
Including:
Balance of guarantees provided for shareholders de facto controller and their related parties (D) 0
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 349968
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) Not applicable
Total of the three amounts above (D+E+F) 349968
Explanation of the situation in which the guarantee liability occurs or there is evidence that it may bear joint and several repayment liability during None
the Reporting Period in respect of unexpired guarantee contracts (if any)
Provision of external guarantees in breach of the prescribed procedures (if any) None
Explanation of compound guarantees
None
108Full Text of 2025 Annual Report of Konka Group Co. Ltd.
3. Cash entrusted for wealth management
(1) Cash entrusted for wealth management
√ Applicable □ Not Applicable
Overview of entrusted wealth management in the Reporting Period
Unit: RMB10000
Balance of entrusted
Product category Risk characteristics wealth management during Unrecovered overdue
the Reporting Period amount
Trust wealth management
products High risk 0 0
Note: Due to the expiration of trust wealth management products the manager allocated
the underlying assets of the trust wealth management.Specifics of high-risk entrusted wealth management where the Company as a sole trustor
entrusts a financial institution to carry out asset management or invests in products with
low security and poor liquidity
√ Applicable □ Not Applicable
Unit: RMB10000
Actual Overview
Name of
Type of Actual recovery of of matter
trustee Risk
trustee Product Start End gains/losses gains/losses and related
institution charact Amount Use of funds
institution type date date during the during the enquiry
(or name eristics
(or trustee) Reporting Period Reporting index (if
of trustee)
Period any)
The
manager
Trust
October allocates the
Daye Trust Wealth October
Trust High 10000 21 Equity assets -10000 underlying -
Co. Ltd. Manag 21 2022
2025 assets of the
ement
trust wealth
management
Total 10000 -- -- -- -10000 -- --
(2) Entrusted loans
□ Applicable √ Not applicable
The Company had no entrusted loans during the Reporting Period.
4. Other major contracts
□ Applicable √ Not applicable
The Company had no other major contracts during the Reporting Period.XVI. Use of Raised Funds
√ Applicable □ Not Applicable
1. Overall use of raised funds
√ Applicable □ Not Applicable
109Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Unit: RMB10000
Proportion Total
Total of use of raised
Proportion Amount of
raised Total raised funds Total
Net of total Total Purpose and raised
Listing Total funds cumulative funds at whose raised
Year of Method of amount of raised unused whereabouts funds idle
date of raised used in use of the end of use was funds with
fundraising fundraising raised funds with raised of unused for more
securities funds the raised the changed changes
funds (1) changes funds raised funds than two
current funds (2) Reporting during the in use
in use years
period Period (3) Reporting
= (2)/(1) Period
Non-public
issuance of June 30 Not
20254100040868.84100041000100.32%000.00%00
corporate 2025 applicable
bonds
Non-public
issuance of July 11 Not
20257900078747.27900079000100.32%000.00%00
corporate 2025 applicable
bonds
0
Total -- -- 120000 119616.00 120000 120000 100.32% 0 0 0.00% -- 0
Description of overall use of raised funds:
1. The non-public issuance of corporate bonds (Phase I) (Variety I) by Konka Group Co.
Ltd. to professional investors in 2025 was completed on June 23 2025 and the raised
funds have been used up during the Reporting Period. The Company used the raised
funds in strict accordance with the agreed purposes of the bond prospectus and the
special account for raised funds operated well.
2. The non-public issuance of corporate bonds (Phase II) (Variety I) by Konka Group Co.
Ltd. to professional investors in 2025 was completed on July 4 2025 and the raised funds
have been used up during the Reporting Period. The Company used the raised funds in
strict accordance with the agreed purposes of the bond prospectus and the special
account for raised funds operated well.
3. Committed projects of raised funds
□ Applicable √ Not applicable
3. Project changes of raised funds
□ Applicable √ Not applicable
The Company did not have any changes in raised funds during the Reporting Period.
4. Verification opinion from the intermediary on the storage and use of the raised
funds
□ Applicable √ Not applicable
XVII. Other Significant Events
√ Applicable □ Not Applicable
110Full Text of 2025 Annual Report of Konka Group Co. Ltd.
(I) Major events planned by the Company's controlling shareholder: On April 29 2025 the
Company received a notice from its former controlling shareholder OCT Group: To
promote professional integration among central state-owned enterprises and optimize
resource allocation OCT Group and its parties acting in concert (Shenzhen OCT Capital
Investment Management Co. Ltd. and Jialong Investment Co. Ltd. wholly-owned
subsidiaries of OCT Group) executed the Agreement on the Gratuitous Transfer of Shares
of Konka Group Co. Ltd. with Panshi Runchuang and Commotra Company Limited
respectively to gratuitously transfer all the shares held by OCT Group and its parties
acting in concert to Panshi Runchuang and Commotra Company Limited wholly-owned
subsidiaries of China Resources. As of July 2025 the gratuitous share transfer has been
completed. The Company's controlling shareholder changed to Panshi Runchuang the de
facto controller is China Resources and the ultimate de facto controller is the SASAC.(II) Non-public issuance of corporate bonds: The Company issued corporate bonds of
RMB 410 million and RMB 790 million on June 23 2025 and July 4 2025 respectively.(III) Termination of the planned issuance of shares for purchasing assets and raising
supporting funds: The Company held the 39th Meeting of the 10th Board of Directors on
January 13 2025 which reviewed and approved the Proposal on the Plan for Issuance of
Shares to Purchase Assets and Raise Supporting Funds by Konka Group Co. Ltd. and its
Abstract and other related proposals. For more details please refer to the relevant
announcements disclosed by the Company on Cninfo (http://www.cninfo.com.cn) on
January 14 2025. The Company held the 48th meeting of the 10th Board of Directors and
the 18th Meeting of the 10th Board of Supervisors on June 10 2025 which reviewed and
approved the Proposal on Terminating the Issuance of Shares to Purchase Assets and
Raise Supporting Funds and the Proposal on Executing the Termination Agreement for the
Share Purchase Agreement specifying the termination of transaction and execution of
relevant termination agreement with the counterparty. For more details please refer to the
Announcement on the Termination of the Issuance of Shares to Purchase Assets and
Raise Supporting Funds (Announcement No.: 2025-46).(IV) Initiation and establishment of funds: the total scale of the Oriental-Konka Industry
M&A Fund was RMB 1001 million. Shenzhen Konka Investment Holding Co. Ltd.contributed RMB 500 million accounting for 49.95% of the total units. By the date of this
report Shenzhen Konka Investment Holding Co. Ltd. has contributed RMB 487.34 million.The fund invested in Jiangxi Yahua Electronic Materials Co. Ltd. Potron Technology Co.Ltd. etc.The total scale of the Kunshan Xinjia Emerging Industry Development Investment Fund
was RMB 1006 million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB
111Full Text of 2025 Annual Report of Konka Group Co. Ltd.
500 million accounting for 49.70% of the total units. By the date of this report Shenzhen
Konka Investment Holding Co. Ltd. has contributed RMB 195.21 million. The fund
invested in UnionTech Software Technology Co. Ltd. Jingwei Qili (Beijing) Technology
Co. Ltd. etc.The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was RMB
500 million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB 200 million
accounting for 40% of the total units. By the date of this report Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB 200 million. The fund invested in Feidi
Technology (Shenzhen) Co. Ltd. Allystar Technology (Shenzhen) Co. Ltd. etc.The total amount of Yancheng Kangyan Information Industry Investment Fund was RMB
3000 million. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital
Equity Investment Management Co. Ltd. contributed RMB 1201.5 million accounting for
40.05% of the total units. By the date of report issuance Shenzhen Konka Investment
Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management Co. Ltd.have contributed RMB 217.37 million. The fund invested in Anhui Zhongdianxinlong
Technology Co. Ltd. (formerly known as Anhui Zhongdianxingfa and Xinlong Technology
Co. Ltd.) Chongqing ypfun Technology Co. Ltd. etc.The total amount of Yibin Kanghui Electronic Information Industry Equity Investment Fund
was RMB 1002 million. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen
Konka Capital Equity Investment Management Co. Ltd. contributed RMB 401 million
accounting for 40.02% of the total. By the date of report issuance Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB 107.52 million. The fund invested in
Chongqing ypfun Technology Co. Ltd. etc.The total amount of Chongqing Kangxin Equity Investment Fund was RMB 2000 million.Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity
Investment Management Co. Ltd. contributed RMB 1000 million accounting for 50% of
the total. By the date of report issuance Shenzhen Konka Investment Holding Co. Ltd.and Shenzhen Konka Capital Equity Investment Management Co. Ltd. have contributed
RMB 152 million. The fund invested in Shanghai Veiglo Information Technology Co. Ltd.Jiangxi Taide Wisdom Technology Co. Ltd. etc.(V) Disclosure Index of Significant Information
No. Date Title Page Website link
Announcement on Resolutions of the First Securities Times B28 Cninfo2025-01 January 4 2025
Extraordinary General Meeting in 2025 Shanghai Securities News (http://www.cninf60 etc. o.com.cn)
2025-02 January 7 2025 Announcement on the Progress of Securities Times B18
Suspension of Trading due to the Planned Shanghai Securities News
112Full Text of 2025 Annual Report of Konka Group Co. Ltd.
No. Date Title Page Website link
Issuance of Shares to Purchase Assets 60 etc.Announcement of the General Risk Warning Securities Times B71
2025-03 January 14 2025 and Stock Resumption on the Issuance of
Shares to Purchase Assets and Raise Shanghai Securities News
Supporting Funds 52 etc.Announcement on Resolutions of the 39th Securities Times B712025-04 January 14 2025
Meeting of the Tenth Board of Directors Shanghai Securities News52 etc.Announcement on the Resolutions of the Securities Times B71
2025-05 January 14 2025 15th Meeting of the 10th Board of Shanghai Securities News
Supervisors 52 etc.Announcement on the Shareholding of the
Top Ten Shareholders and Top Ten Securities Times B71
2025-06 January 14 2025 Tradable Shareholders of the Listed Shanghai Securities News
Company on the Trading Day Prior to the 52 etc.Suspension
Announcement on Not Convening a Securities Times B71
2025-07 January 14 2025 General Meeting to Review Matters Related Shanghai Securities News
to the Transaction 52 etc.Announcement on Listing Transfer of Partial
2025-08 January 17 2025 Equity of Joint Stock Company and Waiver
Securities Times B43
of Right of First Refusal and Related-Party Shanghai Securities
Transactions Journal 36 etc.
2025-09 January 21 2025 Announcement on Progress in the Provision
Securities Times B88
of External Guarantee Shanghai SecuritiesJournal 73 etc.Securities Times B18
2025-10 January 27 2025 2024 Results Forecast Shanghai Securities
Journal 28 etc.Announcement on the Progress of the Securities Times B16
2025-11 February 14 2025 Issuance of Shares to Purchase Assets and Shanghai Securities
Raise Supporting Funds Journal 9 etc.Securities Times B13
2025-12 March 8 2025 Notice on Convening the Second
Extraordinary General Meeting in 2025 Shanghai SecuritiesJournal 16 etc.
2025-13 March 8 2025 Announcement on Resolutions of the 41st
Securities Times B13
Meeting of the Tenth Board of Directors Shanghai SecuritiesJournal 16 etc.Announcement on Extended Loans Securities Times B13
2025-14 March 8 2025 Provided by the Holding Subsidiary to Shanghai Securities
Shareholders in Proportion to Equity Journal 16 etc.Announcement on the Progress of the Securities Times B20
2025-15 March 14 2025 Issuance of Shares to Purchase Assets and Shanghai Securities
Raise Supporting Funds Journal 52 etc.
2025-16 March 22 2025 Announcement on Resolutions of the 42nd
Securities Times B44
Meeting of the Tenth Board of Directors Shanghai SecuritiesJournal 132 etc.
113Full Text of 2025 Annual Report of Konka Group Co. Ltd.
No. Date Title Page Website link
2025-17 March 22 2025 Notice on Convening the Third
Securities Times B44
Extraordinary General Meeting in 2025 Shanghai SecuritiesJournal 132 etc.
2025-18 March 22 2025 Announcement on Providing Guarantees for
Securities Times B44
Holding Companies Shanghai SecuritiesJournal 132 etc.Announcement on the Extension of Securities Times B44
2025-19 March 22 2025 Financial Assistance to Sichuan Chengrui Shanghai Securities
Real Estate Co. Ltd. Journal 132 etc.Announcement on Resolutions of the Securities Times B34
2025-20 March 25 2025 Second Extraordinary General Meeting in Shanghai Securities
2025 Journal 44 etc.
Securities Times B75
2025-21 March 28 2025 Announcement on Changes in Certain
Accounting Policies Shanghai SecuritiesJournal 108 etc.
2025-22 March 29 2025 Announcement on Progress in the Provision
Securities Times B160
of External Guarantee Shanghai SecuritiesJournal 9 etc.
2025-23 April 1 2025 Announcement on Resolutions of the 43rd
Securities Times B87
Meeting of the Tenth Board of Directors Shanghai SecuritiesJournal 10 etc.Announcement on Changes to the Securities Times B87
2025-24 April 1 2025 Accounting Method for Associated Shanghai Securities
Companies Journal 10 etc.
2025-25 April 8 2025 Announcement on Resolutions of the Third
Securities Times B16
Extraordinary General Meeting in 2025 Shanghai SecuritiesJournal 12 etc.Indicative Announcement on the Planning Securities Times B105
2025-26 April 9 2025 of Major Events by the Controlling Shanghai Securities
Shareholder Journal 108 etc.Announcement on the Progress of the Securities Times B103
2025-27 April 12 2025 Issuance of Shares to Purchase Assets and Shanghai Securities
Raise Supporting Funds Journal 153 etc.
2025-28 April 14 2025 Announcement on Abnormal Fluctuations in
Securities Times B3
Stock Trading Shanghai SecuritiesJournal 9 etc.Securities Times A7
2025-29 April 15 2025 Announcement on Resolutions of the 16th
Meeting of the 10th Board of Supervisors Shanghai SecuritiesJournal 20 etc.
2025-30 April 15 2025 Announcement on Expected Routine
Securities Times A7
Related-party Transactions in 2025 Shanghai SecuritiesJournal 20 etc.
2025-31 April 15 2025 Announcement on the Profit Distribution
Securities Times A7
Plan for 2024 Shanghai SecuritiesJournal 20 etc.
2025-32 April 15 2025 Announcement on Accrual of Asset
Securities Times A7
Impairment Reserves for 2024 Shanghai SecuritiesJournal 20 etc.
114Full Text of 2025 Annual Report of Konka Group Co. Ltd.
No. Date Title Page Website link
Summary of 2024 Annual Report of Konka Securities Times A72025-33 April 15 2025
Group Co. Ltd. Shanghai SecuritiesJournal 20 etc.Securities Times A7
2025-34 April 15 2025 2024 Annual Report Shanghai Securities
Journal 20 etc.Securities Times A7
2025-35 April 15 2025 Announcement on Resolutions of the 44th
Meeting of the Tenth Board of Directors Shanghai SecuritiesJournal 20 etc.
2025-36 April 15 2025 Announcement on Cumulative Litigations
Securities Times A7
and Arbitrations Shanghai SecuritiesJournal 20 etc.Securities Times B784
2025-37 April 26 2025 Announcement on Holding 2024 Online
Performance Briefing Shanghai SecuritiesJournal 300 etc.Securities Times B398
2025-38 April 30 2025 First Quarter Report 2025 Shanghai Securities
Journal 76 etc.Announcement on the Progress of the Securities Times B80
2025-39 April 30 2025 Planning of Major Events by the Controlling Shanghai Securities
Shareholder Journal 732 etc.
2025-40 May 9 2025 Announcement on Progress of Guarantee
Securities Times B15
Provision for Wholly-owned Company Shanghai SecuritiesJournal 57 etc.Announcement on the Progress of the Securities Times A12
2025-41 May 12 2025 Issuance of Shares to Purchase Assets and Shanghai Securities
Raise Supporting Funds Journal 10 etc.
2025-42 May 21 2025 Announcement on Resolutions of the 46th
Securities Times B30
Meeting of the Tenth Board of Directors Shanghai SecuritiesJournal 60 etc.
2025-43 May 21 2025 Notice on Convening 2024 Annual General
Securities Times B30
Meeting of Shareholders Shanghai SecuritiesJournal 60 etc.Announcement on the Opportunistic Sale of Securities Times B137
2025-44 June 3 2025 Partial Shares of Wuhan Tianyuan Group Shanghai Securities News
Co. Ltd. 60 etc.
2025-45 June 3 2025 Announcement on Resolutions of the 47th
Securities Times B137
Meeting of the Tenth Board of Directors Shanghai Securities News60 etc.Announcement on the Termination of Securities Times B2
2025-46 June 11 2025 Issuing Shares to Purchase Assets and Shanghai Securities News
Raise Supporting Funds 76 etc.Announcement on Holding Investor Briefing
2025-47 June 11 2025 on the Termination of Issuing Shares to
Securities Times B2
Purchase Assets and Raise Supporting Shanghai Securities News
Funds 76 etc.
2025-48 June 11 2025 Announcement on Resolutions of the 48th Securities Times B2
Meeting of the Tenth Board of Directors Shanghai Securities News
115Full Text of 2025 Annual Report of Konka Group Co. Ltd.
No. Date Title Page Website link
76 etc.
2025-49 June 11 2025 Announcement of Resolutions of the 18th
Securities Times B2
Meeting of the 10th Supervisory Board Shanghai Securities News76 etc.
2025-50 June 17 2025 Announcement on Resolutions of the 2024
Securities Times B46
Annual General Meeting of Shareholders Shanghai Securities News44 etc.Announcement of Issuance Results of Securities Times B14
2025-51 June 25 2025 Privately Placed Corporate Bonds to Shanghai Securities News
Professional Investors in 2025 (Tranche I) 84 etc.Announcement on the Progress of the Securities Times B176
2025-52 June 28 2025 Planning of Major Events by the Controlling Shanghai Securities News
Shareholder 171 etc.Announcement on the Progress of the Securities Times B53
2025-53 July 1 2025 Planning of Major Events by the Controlling Shanghai Securities News
Shareholder 64 etc.Announcement of Issuance Results of Securities Times B37
2025-54 July 8 2025 Privately Placed Corporate Bonds to Shanghai Securities News
Professional Investors in 2025 (Tranche II) 76 etc.Announcement on the Completion of A- Securities Times B71
2025-55 July 12 2025 share Transfer Registration for Shareholder
Equity Change and Change of the Shanghai Securities News
Company's Controlling Shareholder 140 etc.Securities Times B128
2025-56 July 15 2025 2025 Semi-annual Performance Forecast Shanghai Securities
Journal 60 etc.Announcement on the Completion of Partial
Transfer of B-shares Related to Securities Times B50
2025-57 July 22 2025 Shareholder Equity Change and the Shanghai Securities
Completion of Gratuitous Transfer of Journal 20 etc.Shares
2025-58 July 30 2025 Declaration and Commitment of
Securities Times B7
Independent Director Candidate (Li Zhong) Shanghai SecuritiesJournal 73 etc.Declaration and Commitment of the Securities Times B7 B8
2025-59 July 30 2025 Nominator for Independent Director (Li Shanghai Securities
Zhong) Journal 73 etc.Declaration and Commitment of Securities Times B7
2025-60 July 30 2025 Independent Director Candidate (Pan Shanghai Securities
Zhaoguo) Journal 73 etc.Declaration and Commitment of the Securities Times B8
2025-61 July 30 2025 Nominator for Independent Director (Pan Shanghai Securities
Zhaoguo) Journal 73 etc.
2025-62 July 30 2025 Declaration and Commitment of
Securities Times B7
Independent Director Candidate (Liu Jian) Shanghai SecuritiesJournal 73 etc.
116Full Text of 2025 Annual Report of Konka Group Co. Ltd.
No. Date Title Page Website link
Declaration and Commitment of the Securities Times B7
2025-63 July 30 2025 Nominator for Independent Director (Liu Shanghai Securities
Jian) Journal 73 etc.
2025-64 July 30 2025 Announcement on the Re-election of the
Securities Times B7
Board of Directors Shanghai SecuritiesJournal 73 etc.
2025-65 July 30 2025 Announcement on Resolutions of the 52nd
Securities Times B8
Meeting of the Tenth Board of Directors Shanghai SecuritiesJournal 73 etc.Notice on Convening the 2025 Fourth Securities Times B72025-66 July 30 2025
Extraordinary General Meeting Shanghai SecuritiesJournal 73 etc.
2025-67 July 31 2025 Announcement on Cumulative Litigations
Securities Times B6
and Arbitrations Shanghai SecuritiesJournal 73 etc.Announcement on the Election of Employee Securities Times B872025-68 August 15 2025
Director Shanghai SecuritiesJournal 65 etc.Announcement on Resolutions of the Securities Times B87
2025-69 August 15 2025 Fourth Extraordinary General Meeting in Shanghai Securities
2025 Journal 65 etc.
Announcement on the Completion of the Securities Times B87
2025-70 August 15 2025 Re-election of the Board of Directors and Shanghai Securities
the Appointment of Senior Executives Journal 65 etc.Securities Times B87
2025-71 August 15 2025 Announcement of Resolutions of the 1st
Meeting of the 11th Board of Directors Shanghai SecuritiesJournal 65 etc.Announcement on the Progress of Securities Times B115
2025-72 August 20 2025 Providing Guarantees for the Holding Shanghai Securities
Company Journal 105 etc.
2025-73 August 21 2025 Announcement on Abnormal Fluctuations in
Securities Times B72
Stock Trading Shanghai SecuritiesJournal 44 etc.Securities Times B23
2025-74 August 29 2025 Summary of 2025 Semi-annual Report Shanghai Securities
Journal 196 etc.Announcement on the Application for a
Borrowing Facility from the Controlling Securities Times B232025-75 August 29 2025
Shareholder and Its Related Parties and Shanghai Securities
Related-Party Transactions Journal 196 etc.
2025-76 August 29 2025 Announcement of Resolutions of the 2nd
Securities Times B23
Meeting of the 11th Board of Directors Shanghai SecuritiesJournal 196 etc.
2025-77 September 12 2025 Announcement of Resolutions of the 3rd
Securities Times B94
Meeting of the 11th Board of Directors Shanghai SecuritiesJournal 20 etc.
2025-78 September 12 2025 Announcement on the Appointment of Audit Securities Times B94
Firms for 2025 Financial Statements and Shanghai Securities
117Full Text of 2025 Annual Report of Konka Group Co. Ltd.
No. Date Title Page Website link
Internal Control Audit Journal 20 etc.Announcement on Extended Loans Securities Times B94
2025-79 September 12 2025 Provided by the Holding Subsidiary to Shanghai Securities
Shareholders in Proportion to Equity Journal 20 etc.Securities Times B94
2025-80 September 12 2025 Notice on Convening the 5th Extraordinary
General Meeting in 2025 Shanghai SecuritiesJournal 20 etc.Announcement on the Overdue Securities Times B40
2025-81 September 27 2025 Shareholder Borrowings for the Investee Shanghai Securities
Company Journal 60 etc.Securities Times B215
2025-82 September 30 2025 Announcement on Resolutions of the 5th
Extraordinary General Meeting in 2025 Shanghai SecuritiesJournal 20 etc.Securities Times B373
2025-83 October 30 2025 Third Quarter Report in 2025 Shanghai Securities
Journal 676 etc.
2025-84 October 30 2025 Announcement on Resolutions of the 4th
Securities Times B373
Meeting of the 11th Board of Directors Shanghai SecuritiesJournal 676 etc.
2025-85 October 30 2025 Announcement on the Appointment of the
Securities Times B373
Secretary to the Board of Directors Shanghai SecuritiesJournal 676 etc.Securities Times B373
2025-86 October 30 2025 Announcement on Routine Related-party
Transactions in 2025 Shanghai SecuritiesJournal 676 etc.Announcement on the Change of Credit
2025-87 November 13 2025 Enhancement Measures for the Company's
Securities Times B17
Non-Public Issuance of Corporate Bonds Shanghai Securities
and Related-party Transactions Journal 20 etc.Securities Times B17
2025-88 November 13 2025 Announcement on Resolutions of the 5th
Meeting of the 11th Board of Directors Shanghai SecuritiesJournal 20 etc.
2025-89 November 13 2025 Notice on Convening the 6th Extraordinary
Securities Times B17
General Meeting in 2025 Shanghai SecuritiesJournal 20 etc.
2025-90 November 26 2025 Announcement on Cumulative Litigations
Securities Times B17
and Arbitrations Shanghai SecuritiesJournal 76 etc.
2025-91 November 29 2025 Announcement on Resolutions of the 6th
Securities Times B165
Extraordinary General Meeting in 2025 Shanghai SecuritiesJournal 68 etc.Announcement on the Related-party
2025-92 November 29 2025 Transaction of Non-Public Transfer of
Securities Times B102
Partial Shares of Wuhan Tianyuan Group Shanghai Securities
Co. Ltd. via Agreement Journal 68 etc.
2025-93 November 29 2025 Announcement on Resolutions of the 6th Securities Times B165
Meeting of the 11th Board of Directors Shanghai Securities
118Full Text of 2025 Annual Report of Konka Group Co. Ltd.
No. Date Title Page Website link
Journal 68 etc.Securities Times B165
2025-94 November 29 2025 Notice on Convening the 7th Extraordinary
General Meeting in 2025 Shanghai SecuritiesJournal 68 etc.Announcement on the Related-Party Securities Times B165
2025-95 November 29 2025 Transaction of Perpetual Bond Financing Shanghai Securities
from the Controlling Shareholder Journal 68 etc.Announcement on the Progress of Related-
2025-96 December 4 2025 Party Transaction of Non-Public Transfer of
Securities Times B51
Partial Shares of Wuhan Tianyuan Group Shanghai Securities News
Co. Ltd. via Agreement 65 etc.
2025-97 December 16 2025 Announcement on Resolutions of the 7th
Securities Times B93
Extraordinary General Meeting in 2025 Shanghai Securities News85 etc.Announcement on the Progress of Related- Securities Times B18
2025-98 December 19 2025 Party Transaction of Perpetual Bond Shanghai Securities News
Financing from the Controlling Shareholder 60 etc.Announcement on Overdue Shareholder Securities Times B22
2025-99 December 23 2025 Loans for Chuzhou Kangxin Health Industry Shanghai Securities News
Development Co. Ltd. 16 etc.
2025-100 December 23 2025 Announcement on Overdue Shareholder
Securities Times B23
Loans for Yikang Technology Co. Ltd. Shanghai Securities News16 etc.Announcement on the Completion of
2025-101 December 25 2025 Transfer Registration for the Non-Public
Securities Times B19
Transfer of Partial Shares of Wuhan Shanghai Securities News
Tianyuan Group Co. Ltd. via Agreement 19 etc.Announcement on Receiving the Decision
on Administrative Regulatory Measures
2025-102 December 27 2025 from the Shenzhen Bureau of the China
Securities Times B129
Securities Regulatory Commission and the Shanghai Securities News
Regulatory Letter from the Shenzhen Stock 12 etc.Exchange
XVIII. Major Events Concerning the Company's Subsidiaries
□ Applicable √ Not applicable
119Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Section VI. Share Changes and Shareholders
I. Share Changes
1. Share changes
Unit: share
Before the Change Increase/decrease in the reporting period (+/-) After the Change
Capital
Quantity Percentage
New Bonus reservesissue Percentage(%) s shares
converted Others Subtotal Quantity
into share (%)
capital
I. Restricted
shares 0 0.00% 0 0.00%
II. Unrestricted 240794540
shares 8 100.00% 2407945408 100.00%
1. RMB-
denominated 159659380 66.31% 1596593800 66.31%
ordinary shares 0
2. Domestically
listed foreign 811351608 33.69% 811351608 33.69%
shares
III. Total shares 2407945408 100.00% 2407945408 100.00%
Reasons for changes in shareholding
□ Applicable √ Not applicable
Approval of the share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ 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:
□ Applicable √ Not applicable
2. Changes in restricted shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
1. Securities (exclusive of preferred shares) issued in the Reporting Period
□ Applicable √ Not applicable
120Full Text of 2025 Annual Report of Konka Group Co. Ltd.
2. Changes to the total shares shareholder structure and asset-liability structure
√ Applicable □ Not Applicable
Changes to the Company's controlling shareholder: On April 29 2025 the Company
received a notice from its former controlling shareholder OCT Group: To promote
professional integration among central state-owned enterprises and optimize resource
allocation OCT Group and its parties acting in concert (Shenzhen OCT Capital Investment
Management Co. Ltd. and Jialong Investment Co. Ltd. wholly-owned subsidiaries of
OCT Group) executed the Agreement on the Gratuitous Transfer of Shares of Konka
Group Co. Ltd. with Panshi Runchuang and Commotra Company Limited respectively to
gratuitously transfer all the shares held by OCT Group and its parties acting in concert to
Panshi Runchuang and Commotra Company Limited wholly-owned subsidiaries of China
Resources. As of July 2025 the gratuitous share transfer has been completed. The
Company's controlling shareholder changed to Panshi Runchuang the de facto controller
is China Resources and the ultimate de facto controller is the SASAC.Perpetual bond financing from the controlling shareholder: The Company's Board of
Directors reviewed and approved the Proposal of the Company on Perpetual Bond
Financing from controlling shareholder Panshi Runchuang (Shenzhen) Information
Management Co. Ltd. at the sixth meeting of the 11th Board of Directors held on
November 28 2025 and at the 6th Extraordinary General Meeting of 2025 held on
November 28 2025. To improve the capital structure risk resistance and financial stability
the meeting approved the Company's perpetual bond financing from its controlling
shareholder Panshi Runchuang with a total amount not exceeding RMB 5 billion no fixed
term and a floating annualized interest rate of one-year Loan Prime Rate (LPR) repriced
every 12 months excluding an interest rate step-up clause. The specific term and purpose
are subject to the contract between both parties. According to the Perpetual Bond
Agreement signed between the Company and Panshi Runchuang the RMB 5 billion
perpetual bond financing has been received.
3. Existing staff-held shares
□ Applicable √ Not applicable
121Full Text of 2025 Annual Report of Konka Group Co. Ltd.
III. Shareholders and de facto controller
1. Shareholders and their shareholdings at the period end
Unit: share
Number of Number of preferred
ordinary shareholders with
shareholders Number of ordinaryshareholders at the month Number of preferred resumed votingas at the end 134165 end prior to the disclosure 126753 shareholders with 0 rights at the month 0of the of this report resumed voting rights end prior to theReporting disclosure of this
Period report
Shareholdings of shareholders holding more than 5% or the top 10 shareholders (excluding shares lent through
refinancing)
Number of Shares in
shares held pledge
Name of Nature of Shareholding at the end of Increase/decrease Restrictedin the Reporting shares Unrestricted marked orshareholder shareholder percentage the
Reporting Period held
shares held frozen
Period Status Quantity
Panshi Runchuang
(Shenzhen)
Information State-owned
Management Co. legal person
21.76%5240224325240224320524022432
Ltd.CITIC Securities
Brokerage (Hong Foreign
Kong) Co. Ltd. legal person
8.24%198361110183600000198361110
Guoyuan Securities
Brokerage (Hong Foreignlegal person 2.55% 61327243 -101900 0 61327243Kong) Co. Ltd.HOLY TIME Foreign
GROUP LIMITED legal person 2.34% 56289100 -1000000 0 56289100
Domestic
Wang Jingfeng natural 1.12% 27001800 27001800 0 27001800
person
Domestic
Li Tao natural 0.71% 17000000 17000000 0 17000000
person
Foreign
NAM NGAI natural 0.64% 15300400 -4699600 0 15300400
person
Foreign
Xu Zhiwang natural 0.37% 8887629 0 0 8887629
person
Hong Kong
Securities Clearing Foreignlegal person 0.36% 8775097 -14651270 0 8775097Company Ltd.Foreign
Xu Xionggui natural 0.25% 5995480 0 0 5995480
person
Circumstances under None
which strategic investors
122Full Text of 2025 Annual Report of Konka Group Co. Ltd.
or general legal persons
become top 10
shareholders due to the
placement of new shares
(if any)
Panshi Runchuang and Commotra Company Limited are both wholly-owned subsidiaries of
China Resources and parties acting in concert; panshi Runchuang holds 524022432 A-
Related or acting-in- shares of Konka Group Co. Ltd. accounting for 21.76% of the total share capital and is the
concert parties among controlling shareholder of the company. Commotra Company Limited holds 198361110 B-
the shareholders above shares of Konka Group Co. Ltd. through CITIC Securities Brokerage (Hong Kong) Co. Ltd.accounting for 8.24% of the total share capital; it is unknown whether other shareholders are
related or act in concert.Involvement of any
shareholder above in
entrusting/being
entrusted with voting Not applicable
rights or waiving voting
rights
Notes on the existence of
repurchase-specific
accounts among the top None
10 shareholders (if any)
Shareholdings of the top 10 shareholders without restrictions on sales (excluding shares lent through refinancing and
shares locked by senior management)
Name of shareholder Unrestricted shares held at the period-
Type
end Type Quantity
Panshi Runchuang (Shenzhen)
Information Management Co. 524022432 RMB-denominated
Ltd. ordinary stock
524022432
CITIC Securities Brokerage Domestically listed
(Hong Kong) Co. Ltd. 198361110 foreign stock 198361110
Guoyuan Securities Brokerage Domestically listed
(Hong Kong) Co. Ltd. 61327243 foreign stock 61327243
HOLY TIME GROUP LIMITED 56289100 Domestically listedforeign stock 56289100
Wang Jingfeng 27001800 RMB-denominatedordinary stock 27001800
Li Tao 17000000 RMB-denominatedordinary stock 17000000
NAM NGAI 15300400 Domestically listedforeign stock 15300400
Xu Zhiwang 8887629 Domestically listedforeign stock 8887629
Hong Kong Securities Clearing
Company Ltd. 8775097
RMB-denominated
ordinary stock 8775097
Xu Xionggui 5995480 Domestically listedforeign stock 5995480
Related or acting-in- Panshi Runchuang and Commotra Company Limited are both wholly-owned subsidiaries of
concert parties among China Resources and parties acting in concert; panshi Runchuang holds 524022432 A-
top 10 unrestricted public shares of Konka Group Co. Ltd. accounting for 21.76% of the total share capital and is the
shareholders as well as controlling shareholder of the company. Commotra Company Limited holds 198361110 B-
between top 10 shares of Konka Group Co. Ltd. through CITIC Securities Brokerage (Hong Kong) Co. Ltd.
123Full Text of 2025 Annual Report of Konka Group Co. Ltd.
unrestricted public accounting for 8.24% of the total share capital; it is unknown whether other shareholders are
shareholders and top 10 related or act in concert.shareholders
Disclosure on the
participation of the top 10 A-share shareholder Wang Jingfeng holds 27001800 shares through the Client Credit
ordinary shareholders in Trading Collateral Securities Account of Guotai Haitong Securities Co. Ltd. A-share
margin trading and shareholder Li Tao holds 17000000 shares through the Client Credit Trading Collateral
securities lending (if any) Securities Account of Guotai Haitong Securities Co. Ltd.Participation of shareholders holding more than 5% of the shares the top 10 shareholders
and the top 10 shareholders of unrestricted tradable shares in refinancing business and
lending shares
□ Applicable √ Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable
shares compared with the previous period due to refinancing lending/repayment
□ Applicable √ Not applicable
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
The company's top 10 common stock shareholders and top 10 unrestricted common stock
shareholders did not engage in any repurchase transactions during the Reporting Period.
2. Controlling shareholder
Nature of the controlling shareholder: Controlled by a central state-owned legal person
Type of the controlling shareholder: Legal person
Legal
Name of Controlling Representati Date of Unified Social Credit
Shareholder ve/Person in Establishment Code Principal Activity
Charge
Information consulting services
(excluding licensed information
consulting services); enterprise
Panshi Runchuang management. (Except for
(Shenzhen) Chen Rong May 31 2024 91440300MADMXA projects subject to approvalInformation FW5J according to the law market
Management Co. Ltd. participants may independently
carry out business activities
upon strength of the business
license)
Controlling
Shareholder’s Holdings
in Other Listed
Companies at Home or None
Abroad in the
Reporting Period
124Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Change to the Controlling Shareholder in the Reporting Period
√ Applicable □ Not Applicable
Name of New Controlling Shareholder Panshi Runchuang (Shenzhen) Information ManagementCo. Ltd.Date of Change July 11 2025
Index for Inquiry on Designated Website Cninfo (http://www.cninfo.com.cn)
Disclosure Date on Designated Website July 12 2025
3. De facto Controller and Persons Acting in Concert
Nature of the de facto controller: Central institution for state-owned assets management
Type of the de facto controller: Legal Person
Legal
Name of De facto Represent Date of
Controller ative/Pers Establishm
Unified Social
on in ent Credit Code
Principal Activity
Charge
Real estate investment; investment in
infrastructure and public utilities such as energy
and environmental protection; investment and
asset management in fields such as banking
trust insurance and funds; investment in and
R&D of high-tech industrial projects such as
semiconductor application bioengineering and
energy conservation and environmental
protection; hospital investment and hospital
management; organization of subsidiaries to
China Resources Wang December 91110000100 engage in the production and sales of medical
Company Limited Xiangming 31 1986 0055386 devices and pharmaceuticals; real estate
development; sales of building materials; and
Sales of food products. (Market entities shall
independently select business items and engage
in business activities in accordance with the law;
for sales of food products and projects subject to
approval in accordance with the law business
activities shall be carried out as approved by the
relevant authority; business activities in projects
prohibited or restricted by national and municipal
industrial policies are prohibited.)
Directly or indirectly holds 53.40% of the shares of China Resources Pharmaceutical Group
Limited 63.22% of the shares of China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.
51.91% of the shares of China Resources Beer (Holdings) Company Limited 61.73% of the
shares of China Resources Power Holdings Company Limited 59.55% of the shares of China
Resources Land Limited 68.72% of the shares of China Resources Building Materials
De facto Controller‘s Technology Holdings Limited 61.46% of the shares of China Resources Gas Group Limited
Holdings in Other 36.58% of the shares of China Resources Medical Holdings Company Limited 71.55% of the
Listed Companies at shares of China Resources Mixc Lifestyle Services Limited 50.04% of the shares of China
Home or Abroad in Resources Beverage (Holdings) Co. Ltd. 60.24% of the shares of China Resources Double-
the Reporting Period Crane Pharmaceutical Co. Ltd. 43.14% of the shares of China Resources Jiangzhong
Pharmaceutical Co. Ltd. 30.48% of the shares of China Resources Boya Bio-pharmaceutical
Group Co. Ltd. 66.37% of the shares of China Resources Chemical Materials Technology
Co. Ltd. 82.05% of the shares of China Resources Microelectronics Co. Ltd. 39.43% of the
shares of Chongqing Gas Group Co. Ltd. 28.05% of the shares of KPC Pharmaceuticals
Inc. 33.70% of the shares of Dong-E-E-Jiao Co. Ltd. 22.53% of the shares of JCET Group
125Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Co. Ltd. 28.34% of the shares of Dirui Industrial Co. Ltd. and 28.00% of the shares of Tasly
Pharmaceutical Group Co. Ltd.Change of the De facto Controller during the Reporting Period
√ Applicable □ Not Applicable
Name of the former de facto controller State-owned Assets Supervision and AdministrationCommission of the State Council
China Resources Company Limited (the ultimate de facto
Name of the new de facto controller controller of the Company is still the State-owned AssetsSupervision and Administration Commission of the State
Council)
Date of Change July 11 2025
Index for Inquiry on Designated Website Cninfo (http://www.cninfo.com.cn)
Disclosure Date on Designated Website July 12 2025
Ownership and control relations between the de facto controller and the Company:
The de facto controller controls the company through trust or other asset management
methods
□ Applicable √ Not applicable
126Full Text of 2025 Annual Report of Konka Group Co. Ltd.
4. Number of accumulative pledged shares held by the Company’s controlling
shareholder or the largest shareholder as well as its acting-in-concert parties
accounts for 80% of all shares of the Company held by them
□ Applicable √ Not applicable
5. Other 10% or greater corporate shareholders
□ Applicable √ Not applicable
6. Limitations on shareholding decrease by the Company’s controlling shareholder
de facto controller reorganizer and other commitment makers
√ Applicable □ Not Applicable
The controlling shareholder Panshi Runchuang committed that the lock-up period for the
shares of the listed company acquired through this transfer shall be subject to the relevant
laws and regulations.IV. Specific implementation of share repurchases in the reporting period
Progress on any share repurchases:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
V. Preference shares
□ Applicable √ Not applicable
No preference shares in the reporting period.
127Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Section VII 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: RMB10000
Bond
Bond name abbrevia Bondcode Issue date Value date Due date
Bonds Interest Way of Trading
tion balance rate redemption venue
Privately placed
corporate bonds Interest paid
to professional 24 every year Shenzhen
investors in 2024 Konka 133759 January January January29 2024 29 2024 29 2026 150000 4.00%
principal
of Konka Group 01 repaid in full
Stock
Co. Ltd. when
Exchange
(Tranche I) expired
Privately placed
corporate bonds Interest paid
to professional every year
investors in 2024 24 Shenzhen
of Konka Group Konka 133782
March 18 March 18 March 18
202420242026400004.00%
principal
02 repaid in full
Stock
Co. Ltd. when Exchange
(Tranche II) expired
(Variety I)
Privately placed
corporate bonds Interest paid
to professional 24 every yearinvestors in 2024 Konka 133783 March 18 March 18 March 18 principal
Shenzhen
of Konka Group 03 2024 2024 2027
40000 4.03% repaid in full Stock
Co. Ltd. when Exchange
(Tranche II) expired
(Variety II)
Privately placed
corporate bonds Interest paid
to professional 25 Kon every year
134294 Shenzheninvestors in 2025 June 23 June 23 June 23 principal Stock
of Konka Group ka 01 2025 2025 2028 41000 3.50% repaid in full
Co. Ltd. when Exchange
(Tranche I) expired
(Variety I)
Privately placed Interest paid
corporate bonds 25 every year Shenzhen
to professional Konka 134334 July 4 July 4 July 4 79000 2.80% principal Stock
investors in 2025 03 2025 2025 2028 repaid in full
of Konka Group when Exchange
Co. Ltd. expired
128Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Bond
Bond name abbrevia Bond Issue date Value date Due date Bonds Interest Way of Trading
tion code balance rate redemption venue
(Tranche II)
(Variety I)
"24 Konka 01" "24 Konka 02" "24 Konka 03" "25 Konka 01" and "25 Konka 03"
Appropriate arrangement of the were placed privately to professional investors meeting the requirements of
Investors (if any) Management Method for Investors Eligibility of Shenzhen Stock Exchange which
not exceeding 200 persons.Applicable Trade Mechanism "24 Konka 01" "24 Konka 02" "24 Konka 03" "25 Konka 01" and "25 Konka 03":negotiate-and-deal click-and-deal inquire-and-deal bid-and-deal.Risk of delisting (if any) and
countermeasures No
Overdue and outstanding bond
□ 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
During the Reporting Period the company's or investors' option clauses were triggered
and executed as follows:
"24 Konka 01" holds a term of 3 years with an issuer's option to adjust the coupon rate
and an investor's put option at the end of the second year. On December 12 2025 the
issuer decided to adjust the coupon rate of "24 Konka 01" to 1.50% for the last year of its
duration. According to the data from the Shenzhen Office of China Securities Depository
and Clearing Co. Ltd. the number of valid put bonds declared for "24 Konka 01" during
the put registration period was 15000000.00 with 0 not put and the put amount was
RMB 1500000000.00. As "24 Konka 01" was fully put back it was delisted from the
Shenzhen Stock Exchange after the interest from January 29 2025 to January 29 2026
and the put principal of "24 Konka 01" were paid on January 29 2026."24 Konka 02" "25 Konka 01" and "25 Konka 03" all hold a term of 3 years with an
issuer's option to adjust the coupon rate and an investor's put option at the end of the
second year. During the Reporting Period the exercise period for the embedded option
clauses of the bonds was not reached without any option exercised.During the Reporting Period no investor protection clauses were triggered.As of the date when this report was approved for disclosure on January 22 2026 the
issuer decided to adjust the coupon rate of "24 Konka 02" to 1.00% for the last year of its
duration. According to the data from the Shenzhen Office of China Securities Depository
and Clearing Co. Ltd. the number of valid put bonds declared for "24 Konka 02" during
the put registration period was 4000000.00 with 0 not put and the put amount was RMB
400000000.00. As "24 Konka 02" was fully put back it was delisted from the Shenzhen
129Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Stock Exchange after the interest from March 18 2025 to March 17 2026 and the put
principal of "24 Konka 02" were paid on March 18 2026.
3. Intermediaries
Bond Intermediary Office Address Signatory Contact PersonAccountants of Intermediary Tel.Industrial 32/F SK Building No. 6
Securities Co. Jianguomenwai Avenue / Zhang Huifang
Ltd. Chaoyang District Beijing Zhang Ning
010-50911203
China Merchants No. 111 Fuhua 1st Road
Securities Co. Futian Street Futian District / Chen Cheng 0755-82943666
Ltd. Shenzhen Guangdong Feng Shu
Sinolink 23/F Zizhu International Yao Heng Qing
Securities Co. Building 1088 Fangdian Road / Chunlin Zhu 021-68826021
Ltd. Pudong New Area Shanghai Jing
24 Konka 01
Century 16/F Building C Huahai24 Konka 02
Securities Co. Financial Innovation Center / Li Jiaqing Yang24 Konka 03
Ltd. No. 5073 Menghai Avenue Qi
0755-83199417
Nanshan District Shenzhen
Beijing Yingke 26/F China World Tower 3 1
Law Firm Jianguomenwai Avenue /
Zhang Jinxing 0755-36866600
Chaoyang District Beijing Han Jian
ShineWing
Certified Public 9/F Block A Fuhua Mansion
Accountants No. 8 Chaoyangmen North Tang Qimei Liu Tang Qimei LiuStreet Dongcheng District Lihong Lihong 010-65542288(Special General
Partnership) Beijing China
Century 16/F Building C Huahai
Securities Co. Financial Innovation Center
Ltd. No. 5073 Menghai Avenue
/ Li Peng 0755-83199417
Nanshan District Shenzhen
Industrial 32/F SK Building No. 6
Securities Co. Jianguomenwai Avenue / Zhang Huifang 010-50911206
Ltd. Chaoyang District Beijing Li Zihao
Guolian Minsheng
Securities 3/F Building B Star Cube Wang Tianhan
Underwriting and Building 1888 Yangshupu / Cai Zhiqiang
Sponsorship Co. Road Hongkou District Wang Chenxu
0510-85200510
25 Konka 01 Ltd. Shanghai Yan Pengfei
25 Konka 03
United Ratings 17/F Building 2 No. 2
Co. Ltd. Jianguomenwai Avenue /
Cui Mengxiao 010-85679696
Chaoyang District Beijing Zhao Xi
ShineWing
Certified Public 9/F Block A Fuhua Mansion Tang Qimei
Accountants No. 8 Chaoyangmen North Deng Tang Qimei Liu
(Special General Street Dongcheng District Dengfeng Liu Lihong
010-65542288
Partnership) Beijing China Lihong
Beijing Yingke 26/F China World Tower 3 1
Law Firm Jianguomenwai Avenue /
Han Jian Zhang 0755-36866600
Chaoyang District Beijing Jinxing
Did the intermediary change during the Reporting Period
130Full Text of 2025 Annual Report of Konka Group Co. Ltd.
□ Yes √ No
4. Use of raised funds
Unit: RMB10000
Whether
Rectific consistent
Actual use of
ation of with the
raised funds (by
Operation of violation usage use
Bond Total Agreed purpose Actual use
Bond Amount Unused special account in the plan and
abbreviat raised purpose of excluding of funds by
code Spent Amount for raised funds use of other
ion funds raised funds temporary category
(if any) raised agreement
supplementary
funds (if s stipulated
flow)
any) in the
prospectus
It has been
operating well
and there has
Used to Repay
been no
24 Konka repay Used to repay corporate
133759 150000 150000 0 violation of None Yes
01 corporate corporate bonds bonds in
relevant
bonds full
regulations and
fund supervision
agreements.It has been
operating well
and there has
Used to Repay
been no
24 Konka repay Used to repay corporate
133782 40000 40000 0 violation of None Yes
02 corporate corporate bonds bonds in
relevant
bonds full
regulations and
fund supervision
agreements.It has been
operating well
and there has
Used to Repay
been no
24 Konka repay Used to repay corporate
133783 40000 40000 0 violation of None Yes
03 corporate corporate bonds bonds in
relevant
bonds full
regulations and
fund supervision
agreements.It has been
operating well
and there has
Used to Repay
been no
25 Konka repay Used to repay corporate
134294 41000 41000 0 violation of None Yes
01 corporate corporate bonds bonds in
relevant
bonds full
regulations and
fund supervision
agreements.Used to Repay It has been
25 Konka repay Used to repay corporate operating well
134334 79000 79000 0 None Yes
03 corporate corporate bonds bonds in and there has
bonds full been no
violation of
131Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Whether
Rectific consistent
Actual use of
ation of with the
raised funds (by
Operation of violation usage use
Bond Total Agreed purpose Actual use
Bond Amount Unused special account in the plan and
abbreviat raised purpose of excluding of funds by
code Spent Amount for raised funds use of other
ion funds raised funds temporary category
(if any) raised agreement
supplementary
funds (if s stipulated
flow)
any) in the
prospectus
relevant
regulations and
fund supervision
agreements.The raised funds were used for project construction.□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting
Period.□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
6. 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
During the Reporting Period for “24 Konka 01” “24 Konka 02” “24 Konka 03” “25 Konka
01” and “25 Konka 03” which were originally provided with a full unconditional andirrevocable joint and several liability guarantee by Overseas Chinese Town Holdings
Company the guarantor was changed to CR Inc. due to the change in the issuer's
controlling shareholder and de facto controller. On December 9 2025 upon approval by
vote at the first bondholders' meeting of 2025 for the corporate bonds “24 Konka 01” “24Konka 02” “24 Konka 03” “25 Konka 01” and “25 Konka 03” of Konka Group Co. Ltd. it
was agreed to change the guarantor of the aforementioned bonds to CR Inc. in which
case “24 Konka 01” “24 Konka 02” “24 Konka 03” “25 Konka 01” and “25 Konka 03”
would be provided with a full unconditional and irrevocable joint and several liability
guarantee by CR Inc. The change in credit enhancement measures was not expected to
cause any material adverse impact on the rights and interests of bondholders.III. Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
None
132Full Text of 2025 Annual Report of Konka Group Co. Ltd.
IV. Convertible Corporate Bonds
□ Applicable √ Not applicable
None
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
Impact on the
Project Details of loss Reason for loss company'sproduction operation
and solvency
In 2026 the
1. In 2025 the Company's consumer electronics Company will focus
business witnessed a decline in operating revenue on optimizing and
due to insufficient product competitiveness. reshaping existing
Despite the decrease of overall expenses year-on- businesses and
year the gross profit still failed to cover the enhancing the
During the Reporting expenses leaving the consumer electronics efficiency across the
Period the business in a loss-making state. 2. In 2025 in entire chain from
Net profit Company's net profit accordance with the Accounting Standards for
R&D production
attributable to loss attributable to Business Enterprises the company made
supply sales and
shareholders of listed provision for impairment losses on accounts service through leanthe listed management to
company’s companies was RMB receivable other receivables inventories12.582 billion investment properties fixed assets intangible significantly improveshareholders accounting for assets construction in progress goodwill long- efficiency.
206.84% of the net term equity investments other current assets Meanwhile the
assets. other non-current assets and other items and Company will strive
recognized certain estimated liabilities. As a result for innovative
the company incurred a net loss attributable to engines for high-
shareholders of the listed company and recorded quality development
negative net assets attributable to shareholders of through analysis of
the listed company in 2025. emerging industriesunder the "9+6"
strategies.VI. Matured Interest-bearing Debt excluding Bonds as at the Reporting Period
□ Applicable √ Not applicable
VII. Whether there was any Violation of Rules and Regulations during the Reporting
Period
□ Yes √ No
VIII. Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company as at the End of the Reporting Period
Unit: RMB10000
Item End of the Reporting
Change from the end of the
Period End of the previous year previous year to the end ofthe Reporting Period
Current ratio 61.70% 57.20% 7.87%
Debt-to-asset ratio 126.22% 95.37% 30.85%
Quick ratio 52.63% 44.28% 18.86%
133Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Increase/decrease
Reporting Period Same period last year compared to the same
period last year
Net profit after deducting -1038083.88 -353499.92 -193.66%
non-recurring gains/losses
EBITDA-to-total debt ratio -54.80% -12.51% -42.29%
Times interest earned -13.84 -4.75 -191.37%
Cash interest coverage -1.08 1.40 -177.14%
ratio
EBITDA interest coverage -12.86 -3.87 -232.30%
ratio
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage ratio 100.00% 100.00% 0.00%
134Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Section VIII Financial Report
I. Independent Auditor’s Report
Type of the independent auditor’s opinion Unqualified Opinion with a Paragraph on MaterialUncertainty Related to Going Concern
Date of signing this report April 27 2026
Name of the independent auditor ShineWing Certified Public Accountants (Special GeneralPartnership)
Reference number of audit report XYZH/2026SZAA8B0071
Name of the certified public accountants Gu Fanqiu Liu Lihong
Main body of the audit report
Audit Report
XYZH/2026SZAA8B0071
Konka Group Co. Ltd.To all shareholders of Konka Group Co. Ltd.:
I. Auditor's Opinion
We have audited the financial statements of Konka Group Co. Ltd. (hereinafter referred to
as the "Konka Group") including the consolidated and parent company's balance sheet as
at December 31 2025 the consolidated and parent company's income statement
consolidated and parent company's statement of cash flows consolidated and parent
company's statement of changes in shareholders' equity as well as the related notes to
the financial statements for the year then ended.In our opinion the attached financial statements are prepared in all material respects in
accordance with the Accounting Standards for Business Enterprises and fairly present the
consolidated and the Company's financial position of Konka Group Co. Ltd. as at
December 31 2025 and the consolidated and the parent company's operating results and
cash flows for the year then ended.II. Basis for the Audit Opinion
We have conducted our audit in accordance with the Chinese Auditing Standards for
Certified Public Accountants. Our responsibilities under these standards are further
described in the "Certified Public Accountant's Responsibilities for the Audit of Financial
Statements" section of the audit report. In accordance with the independence
requirements of the Independence Standards for Certified Public Accountants of China
and the Code of Ethics for Certified Public Accountants of China applicable to the auditing
of financial statements of public interest entities we are independent of Konka Group Co.Ltd. and have fulfilled our other responsibilities in terms of independence and professional
ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.
135Full Text of 2025 Annual Report of Konka Group Co. Ltd.
III. Material Uncertainty Related to Going Concern
We draw the attention of the users of the financial statements to the fact that as stated in
Note III. 2 to the financial statements the consolidated net profit of Konka Group Co. Ltd.for the year 2025 was RMB -12.238 billion and as of December 31 2025 Konka Group
Co. Ltd.'s net assets in the consolidated financial statements were RMB -5.860 billion
with a debt-to-asset ratio of 126.22%. The aforesaid matters or conditions along with
others set forth in Note III.2 to the financial statements indicate the material uncertainty
that may cast significant doubt on the Group's ability to continue as a going concern. Such
matter does not affect the audit opinion that has been expressed.IV.Key Audit Matters
Key audit matters are those matters that in our professional judgment are of most
significance in our audit of the financial statements of the current period. These matters
are addressed in the context of our audit of the financial statements as a whole and in
forming our opinion thereon and we do not provide a separate opinion on these matters.
1. Revenue Recognition
Key Audit Matters Responses in Audit
For relevant information disclosure please refer to the (1) Evaluated and tested the effectiveness of the
accounting policies described in Note "IV. Significant designing and operation of key internal control related to
Accounting Policies and Accounting Estimates 34" and "VI. revenue recognition;
Notes to Major Items in the Consolidated Financial (2) Obtained the executed sales contracts analyzed the
Statements 49" of the financial statements. relevant terms of the sales contracts and evaluated
Konka Group Co. Ltd. recognized operating revenue of whether the revenue recognition policies of Konka Group
RMB 9.835 billion yuan in its consolidated financial Co. Ltd. comply with the provisions of the Accounting
statements for the year 2025 which mainly consisted of Standards for Business Enterprises;
revenue from businesses such as color TVs white goods (3) Obtained the list of product sales customers of Konka
printed circuit boards and semiconductors. Due to the Group Co. Ltd. and identified whether there is a related-
significance of revenue to the financial statements as a party relationship between the customers and Konka
whole and the risk of material misstatement that Group Co. Ltd. by means such as checking the
management may manipulate revenue recognition to industrial and commercial information of the customers;
achieve specific goals or expectations we identified revenue (4) Performed analytical procedures on revenue and
recognition as a key audit matter. costs to evaluate the rationality of changes in sales
revenue and gross profit margin on sales;
(5) Checked documents such as significant sales
contracts orders invoices certificates of transfer of
property rights and bank receipts to verify the
authenticity completeness and accuracy of the revenue;
(6) Performed cut-off tests on sales revenue.
2. Impairment of External Financial Assistance Funds
Key Audit Matters Responses in Audit
For relevant information disclosure please refer to the (1) Understood evaluated and tested the designing and
accounting policies described in Note "IV. Significant operating effectiveness of the Management's key internal
Accounting Policies and Accounting Estimates 11" and "VI. controls related to external financial assistance;
Notes to Major Items in the Consolidated Financial (2) Obtained the relevant review documents loan
Statements 7" and "VI. Notes to Major Items in the
136Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Consolidated Financial Statements 10" to the financial contracts equity pledge contracts minutes of meetings
statements. and other original documents relating to the external
The external financial assistance by Konka Group Co. Ltd. financial assistance with Konka Group Co. Ltd. and
was mainly the shareholders' financial assistance funds checked whether the lending process of such external
receivable from associates. As of December 31 2025 the financial assistance was compliant;
balance of such financial assistance funds was RMB 2.102 (3) For the overdue financial assistance payments
billion with a provision for bad debts of RMB 1.290 billion. consulted with the Management of Konka Group on the
Given the significance of the external financial assistance to operating conditions of the relevant investees and the
the financial statements as a whole and that provision for Company's follow-up plans;
impairment of the related assets involved significant (4) For the amounts of external financial assistance with
management judgments and estimates we identified the indications of impairment obtained the information on
impairment of external financial assistance as a key audit the Management's estimated recoverable amount and
matter. brought in valuation experts from the accounting firms to
assist in reviewing key parameters and assumptions
adopted by the Management in evaluating expected
credit losses as well as checking the accuracy of the
calculation of the recoverable amount;
(3) Evaluated the competence professionalism and
objectivity of the external valuation experts engaged by
the Management; and
(6) Examined the presentation and disclosure of
information relating to impairment of external financial
assistance in the financial statements.
3. Impairment of long-term assets
Key Audit Matters Responses in Audit
For relevant information disclosure please refer to the (1) Understood and assessed the internal control of
accounting policies stated in Note IV. Significant Accounting Konka Group Co. Ltd. related to identifying indicators of
Policies and Accounting Estimates (Items 20 21 22 23 26 impairment of each long-term assets and measuring
and 27) and Note VI. Notes to Major Items of Consolidated recoverable amounts and tested the effectiveness of key
Financial Statements (Items 12 14 15 16 and 18) in the internal control;
financial statements. (2) Discussed with the Management of Konka Group
The significant long-term assets of Konka Group include Co. Ltd. to understand whether the management's
long-term equity investments investment properties fixed business strategies for the relevant long-term assets
assets construction in progress and intangible assets. As of have changed and analyzed whether there is any inter-
December 31 2025 the total carrying amount of the period and over-accrual of provision for impairment of
aforesaid assets amounted to 8.587 billion yuan with long-term assets;
accumulated impairment provisions of 6.985 billion yuan (3) For assets or asset groups with indications of
accrued. Given the overall materiality of these long-term impairment obtained the information on the
assets to the financial statements and the fact that the Management's estimated recoverable amount and
accrual of relevant asset impairment provisions involves brought in valuation experts from the accounting firms to
significant management judgments and estimates we have assist in reviewing key parameters such as the
identified the impairment of long-term assets as a key audit measurement model based on which the recoverable
matter. amount was measured the fair value the disposal costs
the projected data of future cash flows and the discount
rate as well as checking the accuracy of the calculation
of the recoverable amount;
(4) Evaluated the competence professionalism and
objectivity of the external valuation experts engaged by
the Management; and
(5) Examined the presentation and disclosure of
information relating to impairment of assets in the
financial statements.
137Full Text of 2025 Annual Report of Konka Group Co. Ltd.
V. Other information
The Management of Konka Group Co. Ltd. (hereinafter referred to as the Management) is
responsible for other information. Other information includes information covered in the
2025 Annual Report of Konka Group Co. Ltd. but excludes the financial statements and
our audit report.Our audit opinion on the financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the
other information and in doing so consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained during the audit or
otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material
misstatement of the other information we are required to report that fact. We have nothing
to report in this regard.VI. Responsibilities of the Management and Governance Executives for Financial
Statements
The Management is responsible for preparing the financial statements in accordance with
the requirements of the Accounting Standards for Business Enterprises to achieve a fair
presentation and for designing implementing and maintaining internal control that is
necessary to ensure that the financial statements are free from material misstatements
whether due to fraud or errors.In preparing the financial statements the Management is responsible for assessing the
going-concern ability of Konka Group Co. Ltd. disclosing matters related to going concern
(if applicable) and applying the going concern basis unless the management plans to
liquidate Konka Group Co. Ltd. terminate its operations or has no other realistic
alternative.The governance executives are responsible for overseeing the financial reporting process
of Konka Group Co. Ltd.VII. Responsibilities of Certified Public Accountants for the Audit of Financial
Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement whether due to fraud or error and to issue
an audit report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with the audit
standards will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if individually or in aggregate they
138Full Text of 2025 Annual Report of Konka Group Co. Ltd.
could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.We have exercised professional judgment and maintained professional skepticism in
performing our audit under the auditing standards. At the same time we also perform the
following work:
(1) Identify and assess the risks of material misstatement of the financial statements
whether due to fraud or error design and perform audit procedures responsive to those
risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error as fraud may involve collusion forgery intentional
omissions misrepresentations or the override of internal control.
(2) Understand the internal control related to the audit so as to design appropriate audit
procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Draw conclusions on the appropriateness of the management's use of the going
concern basis. Meanwhile based on the audit evidence obtained a conclusion is drawn as
to whether there is a material uncertainty in events or circumstances that may give rise to
significant doubt about the going concern ability of Konka Group Co. Ltd. If we conclude
that a material uncertainty exists we are required to in our audit report draw the attention
of the users of statements to the related disclosures in the financial statements; if such
disclosures are inadequate we should modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our audit report. However future events or
circumstances may cause Konka Group Co. Ltd. to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and
whether the financial statements fairly reflect the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
the entities or business activities within Konka Group Co. Ltd. to express an opinion on
the financial statements. We are responsible for the direction supervision and
performance of the group audit and we remain solely responsible for our audit opinion.We communicate with those charged with governance regarding the planned scope and
timing of the audit significant audit findings and other matters including any significant
deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence and communicate with them
all relationships and other matters that may reasonably be thought to bear on our
139Full Text of 2025 Annual Report of Konka Group Co. Ltd.
independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those
matters that were of most significance in the audit of the financial statements of this period
and are therefore the key audit matters. We describe these matters in the audit report
unless laws and regulations prohibit public disclosure of these matters or in extremely rare
circumstances if it is reasonably expected that the negative consequences of
communicating a matter outweigh the benefits to the public interest we determine not to
do so.ShineWing Certified Public Accountants Certified Public Accountant of China:
(Special General Partnership) (Engagement partner)
Certified Public Accountant of China:
Beijing China April 27 2026
140Full Text of 2025 Annual Report of Konka Group Co. Ltd.
II. Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co. Ltd.December 31 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 6313941885.05 4115767247.73
Settlement reserve
Interbank loans granted
Trading financial assets 202027000.00 286648129.34
Derivative financial assets
Notes receivable 77316985.56 169675176.16
Accounts receivable 1086929012.15 1315222656.92
Receivables financing 155957556.43 63943324.53
Prepayments 96105739.60 124748412.59
Premiums receivable
Reinsurance receivables
Reinsurance contract reserve
receivable
Other receivables 942267792.91 989245120.86
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1662246630.58 2694648186.93
Including: data resources
Contract assets 1892306.30 2630508.60
Assets held for sale
Current portion of non-current assets
Other current assets 761567941.76 2168400012.47
Total current assets 11300252850.34 11930928776.13
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term Receivables
Long-term equity investments 2026038156.99 5921501427.49
Other equity instrument investments 10213810.20 16114932.00
Other non-current financial assets 1161781213.03 1802409887.89
Investment properties 866051475.13 1650843239.51
141Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
Fixed assets 4405958959.37 5005836928.31
Construction in progress 516337481.93 873042499.04
Productive biological assets
Oil and gas assets
Right-of-Use Assets 130076544.83 178185679.35
Intangible assets 772231958.52 988045525.76
Including: data resources
Development costs
Including: data resources
Goodwill 22196735.11
Long-term deferred expenses 453962117.69 532181161.63
Deferred tax assets 106993555.63 1392239301.87
Other non-current assets 601006137.59 1148677970.47
Total non-current assets 11050651410.91 19531275288.43
Total assets 22350904261.25 31462204064.56
Current liabilities:
Short-term borrowings 4575915552.66 5741171468.26
Borrowings from the central bank
Interbank loans obtained
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 943817767.91 1150310856.70
Accounts payable 1977736371.29 2774615788.24
Advances from customers 3426361.65 3481262.87
Contract liabilities 256506499.39 623555669.97
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 223175513.10 243731849.78
Taxes payable 71276255.42 94612710.58
Other payables 6565100788.16 3502796381.63
Including: interest payable
Dividends Payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
142Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
Non-current liabilities maturing within 3650840615.21 6655534395.19
one year
Other current liabilities 46377272.29 69876531.91
Total current liabilities 18314172997.08 20859686915.13
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 6537926737.54 5530649801.93
Bonds payable 1596674876.37 2295193501.05
Including: preferred shares
Perpetual bonds
Lease liabilities 96858968.75 146561588.52
Long-term payables 2033227.02 5504548.24
Long-term employee benefits 4519491.87 4608659.47
payable
Provisions 852722866.97 428433732.19
Deferred income 408175795.51 393437007.37
Deferred tax liabilities 114475054.80 133299175.48
Other non-current liabilities 283739354.36 207378781.21
Total non-current liabilities 9897126373.19 9145066795.46
Total Liabilities 28211299370.27 30004753710.59
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments 5000000000.00
Including: preferred shares
Perpetual bonds 5000000000.00
Capital reserves 406579870.80 512840575.73
Less: Treasury shares
Other comprehensive income -1866392.91 -9040290.32
Specific reserve 17197144.62 11249678.53
Surplus reserves 1244180364.24 1244180364.24
General risk reserve
Undistributed profits -15157108084.70 -2574708227.90
Total equity attributable to owners of -6083071689.95 1592467508.28
the parent company
Non-controlling interests 222676580.93 -135017154.31
Total owners’ equity -5860395109.02 1457450353.97
Total liabilities and owners’ equity 22350904261.25 31462204064.56
Legal representative: Wu Chief finance officer: Yu Head of accounting agency:
Jianjun Huiliang Wang Lihu
143Full Text of 2025 Annual Report of Konka Group Co. Ltd.
2. Balance sheet of the parent company
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 4870422479.05 2310021016.85
Trading financial assets 202027000.00 286648129.34
Derivative financial assets
Notes receivable 18077864.64
Accounts receivable 3546031483.05 2783399610.31
Receivables financing
Prepayments 3312810262.72 5060895887.42
Other receivables 6564549497.34 8210096432.41
Including: Interest receivable
Dividends receivable 394828312.64 397729468.60
Inventories 165333867.28 143981116.62
Including: data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 287171986.89 1621740187.04
Total current assets 18948346576.33 20434860244.63
Non-current assets:
Debt investments
Other debt investments
Long-term Receivables
Long-term equity investments 7947033374.38 9995056051.55
Other equity instrument investments 10213810.20 10213810.20
Other non-current financial assets 202032067.00 396353137.96
Investment properties 586120252.57 873925486.40
Fixed assets 375367331.52 413605136.94
Construction in progress 13474434.20 12762103.76
Productive biological assets
Oil and gas assets
Right-of-Use Assets 347027.65
Intangible assets 23160095.54 36845184.32
Including: data resources
Development costs
Including: data resources
Goodwill
Long-term deferred expenses 20782020.29 32966195.77
Deferred tax assets 667646526.22
Other non-current assets 1467871.30 969222.30
144Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Total non-current assets 9179998284.65 12440342855.42
Total assets 28128344860.98 32875203100.05
Current liabilities:
Short-term borrowings 1519153294.44 2312074875.00
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 25163192.12 94034764.53
Accounts payable 3796563874.96 6342200859.52
Advances from customers
Contract liabilities 2699707593.73 2503838527.97
Employee benefits payable 37672994.15 27648867.42
Taxes payable 25675833.17 5299228.44
Other payables 7700994198.52 5638650473.74
Including: interest payable
Dividends Payable
Liabilities directly associated with assets held for sale
Non-current liabilities maturing within one year 3387594563.88 6441534654.07
Other current liabilities 7497034.93 11512394.96
Total current liabilities 19200022579.90 23376794645.65
Non-current liabilities:
Long-term borrowings 5535100000.19 4371231706.59
Bonds payable 1596674876.37 2295193501.05
Including: preferred shares
Perpetual bonds
Lease liabilities 367441.04
Long-term payables
Long-term employee benefits payable
Provisions 346428842.60 346376800.41
Deferred income 33164619.14 42829889.81
Deferred tax liabilities 42603809.42 34882051.56
Other non-current liabilities 52346890.08 44189363.15
Total non-current liabilities 7606686478.84 7134703312.57
Total Liabilities 26806709058.74 30511497958.22
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments 5000000000.00
Including: preferred shares
Perpetual bonds 5000000000.00
Capital reserves 214160914.80 339889142.56
Less: Treasury shares
Other comprehensive income -1360579.00 -1281096.83
Specific reserve
145Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Surplus reserves 1260024039.76 1260024039.76
Undistributed profits -7559133981.32 -1642872351.66
Total owners’ equity 1321635802.24 2363705141.83
Total liabilities and owners’ equity 28128344860.98 32875203100.05
3. Consolidated income statement
Unit: RMB
Item Year 2025 Year 2024
I. Total revenue 9835474916.53 11114763969.59
Including: operating revenue 9835474916.53 11114763969.59
Interest income
Premiums earned
Handling charge and commission income
II. Total operating costs 11943907187.59 13545420123.09
Including: cost of sales 9430717918.20 10861823991.19
Interest expense
Service fee and commission expense
Surrender payments
Net claims paid
Net change in insurance contract reserves
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 111476592.07 125957334.99
Selling expenses 647219068.47 774298036.87
Administrative expenses 564170838.00 651947833.46
R&D expense 386105836.96 416405840.34
Finance costs 804216933.89 714987086.24
Including: Interest expenses 871624731.68 953199337.05
Interest income 134366718.80 215619251.81
Add: Other income -544180545.00 110600310.12
Return on investment (“-” for loss) 277402566.69 -40606278.44
Including: Investment income from associates and joint
ventures -379192413.39 -134541620.49
Income from the derecognition of financial assets at
amortized cost -3484892.68 -4519585.64
Exchange gains ("-" for loss)
Net gains on exposure hedges (“-” for loss)
Gains from fair value changes (“-” for loss) -460420971.18 -363008154.15
Credit impairment loss (“-” for loss) -1520599233.40 -405967710.66
Asset impairment loss (“-” for loss) -6176184308.20 -999416234.21
Gains on disposal of assets (“-” for loss) 24500775.05 13572230.63
III. Operating profit ("-" for loss) -10507913987.10 -4115481990.21
Add: Non-operating income 23053295.76 36502107.29
Less: Non-operating expenses 459512872.49 165575114.70
IV. Total profit ("-" for total loss) -10944373563.83 -4244554997.62
Less: Income tax expense 1293239956.02 69552329.00
146Full Text of 2025 Annual Report of Konka Group Co. Ltd.
V. Net profit ("-" for net loss) -12237613519.85 -4314107326.62
(I) By operating continuity
1. Net profit from continuing operations (“-” for net loss) -12237613519.85 -4314107326.62
2. Net profit from discontinued operations (“-” for net loss)
(II) By ownership
1. Net profit attributable to owners of the parent company -12582399856.80 -3725557221.78
2. Net profit attributable to non-controlling interests 344786336.95 -588550104.84
VI. Other comprehensive income (net of tax) 20737108.06 -2130878.00
Net of tax of other comprehensive income attributable to
owners of the parent company 7173897.41 4403268.12
(I) Other comprehensive income not reclassified to
gains/losses -5901121.80
1. Remeasurement of defined benefit plans
2. Other comprehensive income that will not be
reclassified to gains/losses under the equity method
3. Changes in the fair value of investments in other equity
instruments -5901121.80
4. Changes in fair value arising from changes in own
credit risk
5. Others
(II) Items that will be reclassified to gains/losses 13075019.21 4403268.12
1. Other comprehensive income that will be reclassified to
gains/losses under the equity method 1776376.21 1923432.88
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the
reclassification of financial assets
4. Credit impairment allowance for investments in other
debt obligations
5. Reserve for cash flow hedges
6. Differences arising from the translation of foreign
currency-denominated financial statements 11298643.00 2479835.24
7. Others
Other comprehensive income attributable to non-
controlling interests (net of tax) 13563210.65 -6534146.12
VII. Total comprehensive income -12216876411.79 -4316238204.62
Total comprehensive income attributable to owners of the
parent company -12575225959.39 -3721153953.66
Total comprehensive income attributable to non-
controlling interests 358349547.60 -595084250.96
VIII. Earnings per share
(i) Basic earnings per share -5.2254 -1.5472
(ii) Diluted earnings per share -5.2254 -1.5472
Legal representative: Wu Chief Accounting Officer: Yu Head of Accounting
Jianjun Huiliang Agency: Wang Lihu
147Full Text of 2025 Annual Report of Konka Group Co. Ltd.
4. Income statement of the parent company
Unit: RMB
Item Year 2025 Year 2024
I. Operating revenue 1487823908.56 1908123924.10
Less: Cost of sales 1446499439.75 1974494601.29
Taxes and surcharges 15156638.24 16346162.85
Selling expenses 67925310.67 96063419.94
Administrative expenses 170375206.05 185596812.40
R&D expense 21951046.63 27710971.97
Finance costs 662683255.63 548355214.80
Including: Interest expenses 796095346.77 821872300.41
Interest income 202015820.38 252748895.39
Add: Other income -93932230.64 8811847.96
Return on investment (“-” for loss) 594647384.74 31201053.12
Including: Investment income from associates and joint -72737179.87 -29330307.37
ventures
Income from the derecognition of financial assets at -226103.98 -1332512.07
amortized cost (“-” for loss)
Net gains on exposure hedges (“-” for loss)
Gains from fair value changes (“-” for loss) -14563367.28 -166949370.96
Credit impairment loss (“-” for loss) -2953870112.05 -139627123.83
Asset impairment loss (“-” for loss) -1888551900.26 -278537119.21
Gains on disposal of assets (“-” for loss) 11634852.64 2842206.14
II. Operating profit (“-” for loss) -5241402361.26 -1482701765.93
Add: Non-operating income 1838690.46 11728990.17
Less: Non-operating expenses 1345966.57 71044286.57
III. Profit before tax (“-” for loss) -5240909637.37 -1542017062.33
Less: Income tax expense 675368284.08 484375831.98
IV. Net profit (“-” for net loss) -5916277921.45 -2026392894.31
(I) Net profit from continuing operations (“-” for net loss) -5916277921.45 -2026392894.31
(II) Net profit from discontinued operations (“-” for net
loss)
V. Other comprehensive income (net of tax) -79482.17 118274.81
(I) Other comprehensive income not reclassified to
gains/losses
1. Remeasurement of defined benefit plans
2. Other comprehensive income that will not be
reclassified to gains/losses under the equity method
3. Changes in the fair value of investments in other equity
instruments
4. Changes in fair value arising from changes in own
credit risk
5. Others
(II) Items that will be reclassified to gains/losses -79482.17 118274.81
148Full Text of 2025 Annual Report of Konka Group Co. Ltd.
1. Other comprehensive income that will be reclassified to -79482.17 118274.81
gains/losses under the equity method
2. Changes in the fair value of investments in other debt
obligations
3. Other comprehensive income arising from the
reclassification of financial assets
4. Credit impairment allowance for investments in other
debt obligations
5. Reserve for cash flow hedges
6. Differences arising from the translation of foreign
currency-denominated financial statements
7. Others
VI. Total comprehensive income -5916357403.62 -2026274619.50
VII. Earnings per share
(i) Basic earnings per share
(ii) Diluted earnings per share
5. Consolidated Statement of Cash Flows
Unit: RMB
Item Year 2025 Year 2024
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of 8541247523.81 10525465272.93
services
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 policyholders
Interest service fee 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 117771372.96 203389517.86
Cash generated from other operating activities 375127689.39 464756959.63
Subtotal of cash generated from operating activities 9034146586.16 11193611750.42
Cash paid for purchase of goods and services 8243073801.04 8054236938.71
Net increase in loans and advances to customers
Net increase in deposits in the central bank and in
interbank loans granted
Payments in cash for claims on original insurance
contracts
Net increase in interbank loans granted
Interest service fee and commissions paid
Policy dividends paid
149Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Cash paid to and for employees 1381510575.23 1561187041.71
Taxes paid 265972133.63 402970523.26
Cash used in other operating activities 754590197.45 1001328403.75
Subtotal of cash used in operating activities 10645146707.35 11019722907.43
Net cash generated from/used in operating activities -1611000121.19 173888842.99
II. Cash flows from investing activities:
Cash received from recovery of investments 1408421673.50 441500809.51
Cash received from investment income 16052167.04 37170842.27
Net cash received from disposal of fixed assets intangible 129662812.26 59667217.18
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Cash generated from other investing activities 37622486.48 186665829.14
Subtotal of cash generated from investing activities 1591759139.28 725004698.10
Payments in cash for the acquisition of fixed assets 291907848.36 620482495.13
intangible assets and other long-lived assets
Cash paid for investments 131920867.57 1400000.00
Net increase in pledged loans granted
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 25451163.26 134327401.00
Subtotal of cash used in investing activities 449279879.19 756209896.13
Net cash generated from/used in investing activities 1142479260.09 -31205198.03
III. Cash flows from financing activities:
Capital contributions received 5003000000.00 167597297.30
Including: Capital contributions by non-controlling 3000000.00 167597297.30
interests to subsidiaries
Cash received from borrowings 12475924439.29 11581264358.29
Cash generated from other financing activities 5239756771.19 898936642.13
Subtotal of cash generated from financing activities 22718681210.48 12647798297.72
Cash paid for repayment of borrowings 16411751361.52 13426379153.79
Cash payments for distribution of dividends profit or 579368680.06 577370283.16
repayment of interest
Including: Dividends and profits paid to minority 926283.41 1204669.38
shareholders by subsidiaries
Cash paid for other financing activities 3024390098.41 1686969576.16
Subtotal of cash outflows from financing activities 20015510139.99 15690719013.11
Net cash from financing activities 2703171070.49 -3042920715.39
IV. Effect of exchange rate changes on cash and cash 2641824.42 8630197.33
equivalents
V. Net increase in cash and cash equivalents 2237292033.81 -2891606873.10
Add: Cash and cash equivalents at the beginning of the 2783177476.45 5674784349.55
period
VI. Cash and cash equivalents at the end of the period 5020469510.26 2783177476.45
150Full Text of 2025 Annual Report of Konka Group Co. Ltd.
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item Year 2025 Year 2024
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of 3375468923.21 6398186209.22
services
Tax rebates 12249617.84 60530397.37
Cash generated from other operating activities 110856652.54 141831895.20
Subtotal of cash generated from operating activities 3498575193.59 6600548501.79
Cash paid for purchase of goods and services 4545537654.60 5971237961.40
Cash paid to and for employees 124225722.04 179067665.39
Taxes paid 20546050.48 39982463.72
Cash used in other operating activities 369257212.81 307674460.32
Subtotal of cash used in operating activities 5059566639.93 6497962550.83
Net cash generated from/used in operating activities -1560991446.34 102585950.96
II. Cash flows from investing activities:
Cash received from recovery of investments 1383353674.50 250174642.36
Cash received from investment income 14638976.67 32599531.28
Net cash received from disposal of fixed assets intangible 27317929.79 7077472.58
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Cash generated from other investing activities 1159341746.08 5599069603.94
Subtotal of cash generated from investing activities 2584652327.04 5888921250.16
Payments in cash for the acquisition of fixed assets 7679658.14 28198069.47
intangible assets and other long-lived assets
Cash paid for investments 132180867.57 770369387.85
Net payments for the acquisition of subsidiaries and other
business units
Cash used in other investing activities 1087593344.00 5493614221.91
Subtotal of cash used in investing activities 1227453869.71 6292181679.23
Net cash generated from/used in investing activities 1357198457.33 -403260429.07
III. Cash flows from financing activities:
Capital contributions received 5000000000.00
Cash received from borrowings 10674181738.88 9062107916.66
Cash generated from other financing activities 10067901149.24 9436937293.60
Subtotal of cash generated from financing activities 25742082888.12 18499045210.26
Cash paid for repayment of borrowings 14237314671.01 10898013880.45
Cash payments for distribution of dividends profit or 575823196.24 564145163.75
repayment of interest
Cash paid for other financing activities 8084015832.13 9422438355.78
Subtotal of cash outflows from financing activities 22897153699.38 20884597399.98
Net cash from financing activities 2844929188.74 -2385552189.72
IV. Effect of exchange rate changes on cash and cash 1566083.68 4656657.45
151Full Text of 2025 Annual Report of Konka Group Co. Ltd.
equivalents
V. Net increase in cash and cash equivalents 2642702283.41 -2681570010.38
Add: Cash and cash equivalents at the beginning of the 1581749278.38 4263319288.76
period
VI. Cash and cash equivalents at the end of the period 4224451561.79 1581749278.38
152Full Text of 2025 Annual Report of Konka Group Co. Ltd.
7. Consolidated Statement of Changes in Owners’ Equity
Current period amount
Unit: RMB
Year 2025
Equity attributable to owners of the parent company
Item Other equity instruments
Non-
Less: Other Gener controllin
Total
Share Preferre Capital Treasur comprehensi Specific Surplus al risk Undistribut Other g
owners’
capital d Perpetual Other reserves y ve income reserve reserves reserv ed profits s
Subtotal
bonds s interests
equity
shares shares e
I. Balance at
the end of 2407945408. 512840575. -9040290.32 11249678. 1244180364.-
1797506898.02369668838.1
-
007353240135017154.
2234651683.7
the previous 8 31 9
year
Add:
Adjustment
for change in
accounting
policy
Correction of
prior period -777201329.82 -777201329.82 -777201329.82
errors
Others
II. Balance at
the 2407945408. 512840575. 11249678. 1244180364. - 1592467508.2 - 1457450353.9
beginning of 00 73
-9040290.3253242574708227.98135017154.0317
the year
III. Change
amount
during the 5000000000. -106260704. 7173897.41 5947466.0
---
00912582399856.7675539198.2
357693735.7317845462.9
current 93 80 3 24 9period (use “-” for
153Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2025
Equity attributable to owners of the parent company
Other equity instruments Non-Item Less: Gener controllin Total
Share Preferre Capital Treasur
Other owners’
capital Perpetual Other reserves y comprehensi
Specific Surplus al risk Undistribut Other Subtotal g
d equitybonds s shares ve income
reserve reserves reserv ed profits s interests
shares e
decreases)
(I) Total - - -
comprehensi 7173897.41 12582399856. 12575225959. 358349547. 12216876411.ve income 80 39
6079
(II) Capital
increase and -
106260704. -106260704.93 -1790696.08 -108051401.01reduction by 93
owners
1. Ordinary
shares
3000000.003000000.00
contributed
by owners
2. Capital
contributed
by holders of
other equity
instruments
3. Amount of
share-based
payments
included in
owners’
equity
-
4. Other 106260704. -106260704.93 -4790696.08 -111051401.0193
(III) Profit
-926283.41-926283.41
distribution
154Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2025
Equity attributable to owners of the parent company
Other equity instruments Non-Item Less: Other Gener controllin
Total
Share Preferre Capital Treasur Specific Surplus al risk Undistribut Other g owners’
capital d Perpetual Other reserves y
comprehensi
ve income reserve reserves reserv ed profits s
Subtotal
bonds s interests
equity
shares shares e
1. Transfer to
surplus
reserve
2. Transfer to
general risk
reserve
3.
Distributions
to owners (or -926283.41 -926283.41
shareholders
)
4. Other
(IV) Internal
transfers
within
owners’
equity
1. Capital
increase (or
share
capital) from
capital
reserve
2. Capital
increase (or
share
capital) from
155Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2025
Equity attributable to owners of the parent company
Other equity instruments Non-Item Less: Gener controllin Total
Share Preferre Capital Treasur
Other owners’
capital Perpetual Other reserves y comprehensi
Specific Surplus al risk Undistribut Other g
d ve income reserve reserves reserv ed profits s
Subtotal
bonds s interests
equity
shares shares e
surplus
reserve
3. Losses
offset by
surplus
reserve
4. Changes
in defined
benefit plans
transferred to
retained
earnings
5. Other
comprehensi
ve income
transferred to
retained
earnings
6. Others
(V) Special 5947466.0
9 5947466.09 2061167.13 8008633.22reserves
1.
Appropriated 7743491.9
6 7743491.96 2912692.75 10656184.71in the current
period
2. Used in 1796025.8
7 1796025.87 851525.62 2647551.49the current
156Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2025
Equity attributable to owners of the parent company
Other equity instruments Non-Item Less: Other Gener controllin
Total
Share Preferre Capital Treasur Specific Surplus al risk Undistribut Other g owners’
capital d Perpetual Other reserves y
comprehensi
ve income reserve reserves reserv ed profits s
Subtotal
bonds s interests
equity
shares shares e
period
(VI) Others 5000000000. 5000000000.0 5000000000.000 0 0
IV. Balance
at the end of 2407945408. 5000000000. 406579870. -1866392.91 17197144. 1244180364.---
000080622415157108084.6083071689.9
222676580.5860395109.0
the current 70 5 93 2
period
157Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Amount of previous period
Unit: RMB
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Gener Non- Total
Share OtherPreferre Capital Treasur Specific Surplus al risk Undistribute Other controlling owners’
capital d Perpetu Other reserves y
comprehensi Subtotal interests equity
al bonds s shares ve income
reserve reserves reserv d profits s
shares e
I. Balance at
the end of the 2407945408. 526499506. -13443558.44 4657488.2 1244180364. 1474561975.8 5644401184. 262221679. 5906622864.00 76 4 24 5 65 49 14
previous year
Add:
Adjustment
for change in
accounting
policy
Correction of
prior period -347232776.81 - -347232776.81 347232776.81
errors
Others
II. Balance at
the beginning 2407945408. 526499506. -13443558.44 4657488.2 1244180364. 1127329199.0 5297168407. 262221679. 5559390087.00 76 4 24 4 84 49 33
of the year
III. Change
amount
during the -
current 13658931.0 4403268.12 6592190.2
----
93702037426.93704700899.397238833.4101939733.period (use “- 3 4 56 80 36” for
decreases)
(I) Total - - - -4403268.12 3725557221.7 3721153953. 595084250. 4316238204.comprehensi 8 66 96 62
158Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Gener Non- Total
Share Preferre Capital Treasur
Other controlling owners’
capital Perpetu Other reserves y comprehensi
Specific Surplus al risk Undistribute Other
d ve income reserve reserves reserv d profits s
Subtotal interests equity
shares al bonds s shares e
ve income
(II) Capital
increase and -
13658931.0-13658931.03196281483.182622552.68
reduction by 3 71
owners
1. Ordinary
shares 167597297. 167597297.30
contributed 30
by owners
2. Capital
contributed
by holders of
other equity
instruments
3. Amount of
share-based
payments
included in
owners’
equity
-
4. Other 13658931.0 -13658931.03 28684186.41 15025255.383
(III) Profit
23519794.8423519794.84-1168043.6422351751.20
distribution
1. Transfer to
surplus
reserve
159Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Gener Non- Total
Share Preferre Capital Treasur
Other controlling owners’
capital Perpetu Other reserves y comprehensi
Specific Surplus al risk Undistribute Other
d ve income reserve reserves reserv d profits s
Subtotal interests equity
shares al bonds s shares e
2. Transfer to
general risk
reserve
3.
Distributions
-1168043.64-1168043.64
to owners (or
shareholders)
4. Other 23519794.84 23519794.84 23519794.84
(IV) Internal
transfers
within
owners’
equity
1. Capital
increase (or
share capital)
from capital
reserve
2. Capital
increase (or
share capital)
from surplus
reserve
3. Losses
offset by
surplus
reserve
160Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2024
Equity attributable to owners of the parent company
Item Other equity instruments Less: Non- Total
Share Capital Treasur Other
Gener
Preferre comprehensi Specific Surplus al risk Undistribute Other
controlling owners’
capital d Perpetu Other reserves y reserve reserves reserv d profits s
Subtotal interests equity
shares al bonds s shares
ve income e
4. Changes
in defined
benefit plans
transferred to
retained
earnings
5. Other
comprehensi
ve income
transferred to
retained
earnings
6. Others
(V) Special 6592190.2
9 6592190.29 2731977.09 9324167.38reserves
1.
Appropriated 7881927.4
9 7881927.49 3279715.07 11161642.56in the current
period
2. Used in
the current 1289737.20 1289737.20 547737.98 1837475.18
period
(VI) Others
IV. Balance
at the end of 2407945408. 512840575. -9040290.32 11249678. 1244180364.-
2574708227.91592467508.
-1457450353.the current 00 73 53 24 0 28
135017154.
3197
period
161Full Text of 2025 Annual Report of Konka Group Co. Ltd.
8. Statement of Changes in Owners’ Equity of the parent company
Current period amount
Unit: RMB
Year 2025
Item Other equity instrumentsShare Capital Less: OtherTreasury comprehensive Specific Surplus Undistributed
Total
capital Preferred Perpetual reserves reserve reserves profits Others owners’
shares bonds Others shares income equity
I. Balance at the
end of the previous 2407945408.00 339889142.56 -1281096.83 1260024039.76 -1199867554.61 2806709938.88
year
Add: Adjustment
for change in
accounting policy
Correction of prior
-443004797.05-443004797.05
period errors
Others
II. Balance at the
beginning of the 2407945408.00 339889142.56 -1281096.83 1260024039.76 -1642872351.66 2363705141.83
year
III. Change amount
during the current
5000000000.00-125728227.76-79482.17-5916261629.66
-
period (use “-” for 1042069339.59
decreases)
(I) Total
comprehensive -79482.17 -5916277921.45 -5916357403.62
income
(II) Capital increase
and reduction by 5000000000.00 -125728227.76 4874271772.24
owners
1. Ordinary shares
contributed by
162Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2025
Item Other equity instrumentsShare Capital Less: Other Specific Surplus Undistributed Total
capital Preferred Perpetual Others reserves
Treasury comprehensive
shares income reserve reserves profits
Others owners’
shares bonds equity
owners
2. Capital
contributed by
5000000000.005000000000.00
holders of other
equity instruments
3. Amount of
share-based
payments included
in owners’ equity
4. Other -125728227.76 -125728227.76
(III) Profit
16291.7916291.79
distribution
1. Transfer to
surplus reserve
2. Distribution to
owners (or
shareholders)
3. Others 16291.79 16291.79
(IV) Internal
transfers within
owners’ equity
1. Capital increase
(or share capital)
from capital
reserve
2. Capital increase
(or share capital)
from surplus
163Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2025
Item Other equity instrumentsShare Capital Less: Other Specific Surplus Undistributed Total
capital Preferred Perpetual reserves Treasury comprehensive reserve reserves profits Others owners’
shares bonds Others shares income equity
reserve
3. Losses offset by
surplus reserve
4. Changes in
defined benefit
plans transferred to
retained earnings
5. Other
comprehensive
income transferred
to retained
earnings
6. Others
(V) Special
reserves
1. Appropriated in
the current period
2. Used in the
current period
(VI) Others
IV. Balance at the
end of the current 2407945408.00 5000000000.00 214160914.80 -1360579.00 1260024039.76 -7559133981.32 1321635802.24
period
Amount of previous period
Unit: RMB
Year 2024
Item
Share Other equity instruments Capital Less: Other Specific Surplus Undistributed Others Total
capital reserves Treasury comprehensive reserve reserves profits owners’
1s6h4ares income equityFull Text of 2025 Annual Report of Konka Group Co. Ltd.
Preferred Perpetual
shares bonds Others
I. Balance at the end
2407945408.00341229750.75-1399371.641260024039.76550788846.444558588673.31
of the previous year
Add: Adjustment for
change in accounting
policy
Correction of prior
-190788098.63-190788098.63
period errors
Others
II. Balance at the
2407945408.00341229750.75-1399371.641260024039.76360000747.814367800574.68
beginning of the year
III. Change amount
during the current
-1340608.19118274.81-2002873099.47-
period (use “-” for 2004095432.85
decreases)
(I) Total
comprehensive 118274.81 -2026392894.31 -2026274619.50
income
(II) Capital increase
and reduction by -1340608.19 -1340608.19
owners
1. Ordinary shares
contributed by owners
2. Capital contributed
by holders of other
equity instruments
3. Amount of share-
based payments
included in owners’
equity
4. Other -1340608.19 -1340608.19
165Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2024
Item Other equity instrumentsShare Capital Less: OtherTreasury comprehensive Specific Surplus Undistributed
Total
capital Preferred Perpetual reserves reserve reserves profits Others owners’
shares bonds Others shares income equity
(III) Profit distribution 23519794.84 23519794.84
1. Transfer to surplus
reserve
2. Distribution to
owners (or
shareholders)
3. Others 23519794.84 23519794.84
(IV) Internal transfers
within owners’ equity
1. Capital increase (or
share capital) from
capital reserve
2. Capital increase (or
share capital) from
surplus reserve
3. Losses offset by
surplus reserve
4. Changes in defined
benefit plans
transferred to retained
earnings
5. Other
comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserves
1. Appropriated in the
166Full Text of 2025 Annual Report of Konka Group Co. Ltd.
Year 2024
Item Other equity instrumentsShare Capital Less: OtherTreasury comprehensive Specific Surplus Undistributed
Total
capital Preferred Perpetual reserves reserve reserves profits Others owners’
shares bonds Others shares income equity
current period
2. Used in the current
period
(VI) Others
IV. Balance at the end
2407945408.00339889142.56-1281096.831260024039.76-1642872351.662363705141.83
of the current period
167Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
I. Company Profile
1. Konka Group Co. Ltd. (hereinafter referred to as the “Company” or 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 August 29 1995 the Company was
renamed “Konka Group Co. Ltd.” (Unified Social Credit Code: 914403006188155783)
with its main business in the electronic industry. Now the headquarters is located at No. 28
No. 12 Keji South Road Science & Technology Park Yuehai Street Nanshan District
Shenzhen Guangdong Province.
2. Share capital
After the distribution of bonus shares allotments increase in share capital and issuance of
new shares over the years as of December 31 2025 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 is mainly engaged in consumer electronics and semiconductor businesses
conducting the production and sales of color TVs white goods optoelectronic displays
storage and printed circuit boards etc.
4. The financial statements were approved by the board of directors of the Company for
disclosure on April 27 2026.II. Scope of the Consolidated Financial Statements
The scope of the Group's consolidated financial statements covers 104 subsidiaries such
as Shenzhen Konka Electronics Technology Co. Ltd. Anhui Konka Electronics Co. Ltd.and Dongguan Konka Electronics Co. Ltd. Compared with the previous year the Group
lost control over its subsidiary Kangrong Jiayuan Technology (Zhejiang) Co. Ltd. due to
an equity transfer during the current year.For details please refer to Note VIII “Changes in the Consolidation Scope” and Note IX
“Equity in Other Entities” herein.Checklist of Company Name and Abbreviation in this Report
No. Company name Abbreviation
1 Shenzhen Konka Electronics Technology Co. Ltd. Electronics Technology
2 Nantong Haimen Konka Smart Technology Co. Ltd. Haimen Konka
3 Chengdu Konka Electronics Co. Ltd. Chengdu Konka Electronics
168Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
4 Nantong Konka Smart Technology Co. Ltd. Nantong Kangdian
5 Shenzhen Kangcheng Technology Innovation and Development Co.Ltd. Shenzhen Kangcheng
6 Shenzhen Xiaojia Technology Co. Ltd. Xiaojia Technology
7 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun Intelligent
8 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang Kangshun Renewable
9 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
10 Chuzhou Konka Precision Intelligent Manufacturing Technology Co.Ltd. Chuzhou Konka
11 Guangdong Xingda Hongye Electronics Co. Ltd. Xingda Hongye
12 Shenzhen Konka Circuit Co. Ltd. Konka Circuit
13 Suining Konka Flexible Electronic Technology Co. Ltd. Konka Flexible Electronics
14 Suining Konka Hongye Electronics Co. Ltd. Kangjia Hongye Electronics
15 Boluo Konka Precision Technology Co. Ltd. Bokang Precision
16 Anhui Konka Tongchuang Electrical Appliances Co. Ltd. Anhui Tongchuang
17 Jiangsu Konka Smart Electrical Appliances Co. Ltd. Jiangsu Konka Smart
18 Anhui Konka Electrical Appliance Technology Co. Ltd. Anhui Electrical Appliance
19 Henan Frestec Refrigeration Appliance Co. Ltd. Frestec Refrigeration
20 Henan Frestec Electrical Appliances Co. Ltd. Frestec Electrical Appliances
21 Henan Frestec Household Appliances Co. Ltd. Frestec Household Appliances
22 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home
23 Shenzhen Konka Investment Holding Co. Ltd. Konka Investment
24 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka Industrial Park
25 Shenzhen Konka Capital Equity Investment Management Co. Ltd. Konka Capital
26 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong
27 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial
28 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology
29 Konka Electronic Material Technology (Shenzhen) Co. Ltd. Konka Electronic Material
30 Beijing Konka Electronic Co. Ltd. Beijing Konka Electronics
31 Tianjin Konka Technology Co. Ltd. Tianjin Konka
32 Suining Konka Industrial Park Development Co. Ltd. Suining Konka Industrial Park
33 Suining Konka Electronic Technology Innovation Co. Ltd. Suining Electronic TechnologyInnovation
169Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
34 Shanghai Konka Industrial Co. Ltd. Shanghai Konka
35 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin
36 Shenzhen Konka Technology Industry Development Co. Ltd. Development of science andtechnology industry
37 Sichuan Konka Smart Terminal Technology Co. Ltd. Sichuan Konka
38 Yibin Konka Smart Technology Co. Ltd. Yibin Smart
39 Shenzhen Konka Semiconductor Technology Co. Ltd. Shenzhen Konka Semiconductor
40 Chongqing Konka Technology Development Co. Ltd. Chongqing Konka
41 Konka Xinying Semiconductor Technology (Shenzhen) Co. Ltd. Xinying Semiconductor
42 Konka Xinying Semiconductor Technology (Hong Kong) Co. Ltd. Xinying Semiconductor (HongKong)
43 Konka ChipCloud Semiconductor Technology (Yancheng) Co. Ltd. Konka Xinyun Semiconductor
44 Konka Cross-border (Hebei) Technology Development Co. Ltd. Konka Cross-border (Hebei)
45 Shenzhen Nianhua Enterprise Management Co. Ltd. Shenzhen Nianhua
46 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Central China
47 Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd. Shenzhen Chuangzhi ElectricalAppliances
48 Suining Jiarun Property Co. Ltd. Suining Jiarun Property
49 Anhui Konka Electronics Co. Ltd. Anhui Konka
50 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade
51 Shenzhen Konka Telecommunications Technology Co. Ltd. Telecommunication Technology
52 Hong Kong Konka Telecommunications Co. Ltd. Hong Kong KonkaCommunications
53 Dongguan Konka Electronics Co. Ltd. Dongguan Konka
54 Suining Konka Smart Technology Co. Ltd. Suining Konka Intelligent
55 Chongqing Konka Optoelectronics Technology Co. Ltd. Chongqing OptoelectronicTechnology
56 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun
57 Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd. Yibin Kangrun Medical
58 Ningbo Kanghanrui Electric Appliances Co. Ltd. Ningbo Kanghanrui ElectricAppliances
59 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka
60 Jiangxi High Transparent Substrate Material Technology Co. Ltd. Jiangxi High Transparent Substrate
61 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystal
62 Shaanxi Konka Smart Home Appliance Co. Ltd. Shaanxi Konka Intelligent
170Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
63 Shenzhen Konka Pengrun Technology & Industry Co. Ltd. Pengrun Technology
64 Jiaxin Technology Co. Ltd. Jiaxin Technology
65 Kangrong Jiayuan Technology (Zhejiang) Co. Ltd. Kangrong Jiayuan
66 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune
67 Jiali International (Hong Kong) Limited Jiali International
68 Hebei Kangjiatong Technology Co. Ltd. Konka Communication
69 Nanjing Konka Smart Electric Co. Ltd. Nanjing Konka Smart
70 Hainan Konka Technology Co. Ltd. Hainan Konka Technology
71 Konka Venture Development (Shenzhen) Co. Ltd. Konka Venture
72 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator
73 Yantai Konka Healthcare Industry Startup Service Co. Ltd. Yantai Konka
74 Guiyang Konka Startup Service Co. Ltd. Konka Enterprise Service
75 Ji'an Konka Technology Industry Development Co. Ltd. Ji'an Konka
76 Konka (Europe) Co. Ltd. Konka Europe
77 Hong Kong Konka Co. Ltd. Hong Kong Konka
78 Kangdian International Trade Co. Ltd. Kangdian Trading
79 Konka North America LLC Konka North America
80 Kanghao Technology Co. Ltd. Kanghao Technology
81 Hongdian Investment Development Co. Ltd. Kangdian Investment
82 Zhongkang Storage Technology Co. Ltd. Zhongkang Storage Technology
83 Chain Kingdom Semiconductor (Shaoxing) Co. Ltd. Zhongkang Semiconductor(Shaoxing)
84 Hongjet (Hong Kong) Co. Ltd. Kangjet
85 Chongqing Xinyuan Semiconductor Co. Ltd. Chongqing Xinyuan Semiconductor
86 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
87 Shenzhen Kanghong Dongsheng Investment Partnership (LimitedPartnership) Kanghong Dongsheng
88 Guizhou Konka New Materials Technology Co. Ltd. Guizhou Konka New MaterialTechnology
89 Konka Smart Home (Shanxi) Industry Development Co. Ltd. Shanxi Smart Home Appliance
90 Guizhou Kanggui Materials Co. Ltd. Guizhou Kanggui Materials
91 Nantong Kanghai Technology Industry Development Co. Ltd. Nantong Kanghai
92 Chongqing Kangyiyun Business Operation Management Co. Ltd. Chongqing Kangyiyun
171Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
No. Company name Abbreviation
93 Jiangxi Konka Technology Park Operation and Management Co. Ltd. Jiangxi Konka Technology Park
94 Shangrao Konka Electronic Technology Innovation Co. Ltd. Shangrao Konka ElectronicTechnology Innovation
95 Zhejiang Konka Electronics Co. Ltd. Zhejiang Konka Electronics
96 Zhejiang Konka Technology Industry Development Co. Ltd. Zhejiang Konka TechnologyIndustries
97 Xi'an Konka Intelligent Home Appliance Co. Ltd. Xi'an Konka Intelligent
98 Xi'an Konka Network Technology Co. Ltd. Xi'an Konka Network
99 Xi'an Kanghong Technology Industry Development Co. Ltd. Xi'an Kanghong TechnologyIndustry
100 Xi'an Konka Intelligent Technology Development Co. Ltd. Xi'an Konka Intelligent Technology
101 Songyang Konka Smart Industry Operation Management Co. Ltd. Songyang Industry Operation
102 Shenzhen Kangyan Technology Co. Ltd. Kangyan Technology
103 Songyang Konka Intelligent Technology Development Co. Ltd. Songyang Konka Intelligent
104 Konka North China (Tianjin) Technology Co. Ltd. Konka North China
105 Shenzhen Konka Digital Technology Development Co. Ltd. Digital technology
III. Basis for the Preparation of Financial Statements
1. Basis for the Preparation
The Group's financial statements were prepared based on actual transactions and events
in accordance with the Accounting Standards for Business Enterprises promulgated by the
Ministry of Finance as well as its application guidelines interpretations and other related
regulations (hereinafter collectively referred to as the "Accounting Standards for Business
Enterprises") as well as the disclosure regulations of the General Provisions on Financial
Reporting No. 15 for Companies Publicly Issuing Securities (revised in 2023) by the CSRC.
2. Going Concern
The consolidated net profit of Konka Group in 2025 was RMB -122.38 hundred million. As
of December 31 2025 the Group's net assets in the consolidated financial statements
were RMB -58.60 hundred million with a debt-to-asset ratio of 126.22%.In view of the above when assessing the Group's ability to continue as a going concern
the Board of Directors of the Group has prudently considered the Group's future strategic
adjustments and business strategies operating conditions working capital and available
sources of financing. The Group has formulated the following plans and measures to
reduce the pressure on working capital and improve its financial position:
(1) On December 29 2025 the National Development and Reform Commission and the
Ministry of Finance officially issued the "Notice on the Implementation of the Policy for
172Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Large-scale Equipment Renewal and Consumer Goods Trade-in in 2026" which provides
special financial subsidies for the renewal of six major categories of home appliances and
equipment. The Group will take this opportunity to accelerate the transformation and
upgrading of its home appliance business to effectively promote the improvement of its
operating performance.
(2) The Group will adhere to the long-term value-oriented business guideline focus on the
development of its main business optimize asset allocation and enhance lean
management. On the one hand with focus on the optimization and reshaping of existing
businesses the Group will comprehensively enhance the efficiency of the entire chain of
R&D production supply sales and service to achieve significant loss reduction in existing
businesses; on the other hand the Group will deepen research and analysis around the
"9+6" strategic emerging industries to seek innovative drivers for its high-quality
development.
(3) Take active measures to revitalize various stock resources and accelerate the recovery
of funds. The Group established a specific department engaged in promoting the exit and
divestment of "non-core and non-advantageous" businesses and assets and utilizing
external resources to shorten the disposal and revitalization period of inefficient assets.
(4) Bank credit lines are relatively stable. The Group will continue to deepen its strategic
cooperation with commercial banks actively expand financing channels and alleviate the
pressure on working capital.After fully considering the various measures mentioned above that the Group is
implementing or plans to implement the Board of Directors of the Group believes that it is
appropriate to prepare these financial statements on a going concern basis for at least 12
months from December 31 2025. However future events or circumstances may result in
significant uncertainty in the implementation of the above-mentioned measures including
the effectiveness of measures such as exiting non-core businesses and revitalizing
existing assets. The renewal of bank credit loans and acquisition of new financing depend
on the Group's communication with commercial banks. If the relevant improvement
measures of the Group fail to be implemented as planned or achieve the expected results
the Company may cease to continue as a going concern hence the uncertainty about the
going-concern ability.IV. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates: The specific accounting policies
and accounting estimates formulated by the Group according to the actual production and
operation characteristics include provisions for bad debts of accounts receivable
provisions for inventory depreciation depreciation of fixed assets revenue recognition and
173Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
measurement etc.
1. Statement of Compliance with the Accounting Standards for Business
Enterprises
The financial statements prepared by the Group are in compliance with the Accounting
Standards for Business Enterprises which factually accurately and completely present the
Company's and the Group's financial positions as of December 31 2025 business results
and cash flows and other relevant information for 2025.
2. Fiscal period
The Group's fiscal period starts from January 1 to December 31 of 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 Company uses RMB as the recording currency. Subsidiaries of the Group determine
their functional currency according to the main economic environment in which they
operate. When preparing the financial statements the Group converts them into RMB
according to the method described in IV.10(2) Conversion of foreign currency financial
statements.
5. Determination methods and selection basis for materiality threshold
The Group prepares and discloses financial statements adhering to the principle of
materiality. The disclosures in the notes to the financial statements cover matters involving
judgments about materiality criteria the methods for determining materiality thresholds
and the bases for selecting these criteria:
Disclosures involving materiality Location of disclosure of this matter Methodology for Determining
standard judgments in the notes to the present financial Materiality Criteria and Basis forstatements Selection
Significant individually bad debt
provisioned receivables Note VI.4. Accounts receivable (2)
Individual amount exceeding
RMB50 million
Receivables with significant amount
of bad debt provision recovered or Note VI.4. Accounts receivable (3) Individual amount exceeding
reversed during the year RMB10 million
Write-off of significant receivables in Note VI.4. Accounts receivable (4) Individual amount exceedingthe year RMB10 million
Significant accounts payable aged
over 1 year Note VI.26. Accounts payable
Individual amount exceeding
RMB10 million
Significant receipts in advance and Note VI.28; note VI.29; note VI.39; note Individual amount exceeding
contractual liabilities/projected VI.27; RMB10 million
liabilities/other payables aged over 1
174Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Disclosures involving materiality Location of disclosure of this matter Methodology for Determining
standard judgments in the notes to the present financial Materiality Criteria and Basis forstatements Selection
year
Significant construction in progress Increase or decrease in a single
projects Note VI.16. Construction in progress (2) asset during the year or a balanceexceeding RMB100 million
6. Accounting Treatments for Business Combinations Under Common Control and
Those Not Under Common Control
(1) Business combinations under common control
A business combination involving entities under common control is a business combination
in which all of the combining enterprises are ultimately controlled by the same party or
parties both before and after the combination and that control is not transitory.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 book value in
the final controlling party on the combining date. The difference between the book value of
the net assets acquired and the book value of the consideration paid for the combination
(or the total par value of the shares issued) is used to adjust the capital reserves; in case
the capital reserves are insufficient to cover the difference the retained earnings will be
adjusted.
(2) Business combinations not under common control
A business combination involving entities not under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the
same party or parties both before and after the combination.As purchaser the identifiable assets liabilities and contingent liabilities of the acquiree
acquired in the business combination not under common control shall be measured at fair
value on the acquisition date. The difference of the combination costs in excess of the fair
value of the identifiable net assets acquired from the acquiree shall be recognized as
goodwill; if the combination costs are less than the fair value of the identifiable net assets
acquired from the acquiree in the combination the fair values of the identifiable assets
liabilities and contingent liabilities acquired from the combination as well as the
combination costs shall be reviewed first. After review if the combination costs are still
less than the fair value the difference shall be included in the current non-operating
revenue of the combination.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial
Statements
The scope of consolidation for the consolidated financial statements of the Group is based
175Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
on control including the Company and all its subsidiaries (including enterprises divisible
parts of investees and structured entities controlled by the Company). The Group
assesses control based on whether it has power over the investee has exposure or rights
to variable returns from its involvement with the investee and has the ability to use its
power over the investee to affect the amount of the investor's returns.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.The impact of internal transactions between the Company and its subsidiaries as well as
between subsidiaries and each other is offset in consolidation. 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 gains/losses other comprehensive income and
total comprehensive income shall be respectively listed in the consolidated financial
statement "Minority shareholders' equity minority shareholders' net gains/losses other
comprehensive income that belongs to minority shareholders and total comprehensive
income that belongs to minority shareholders".For subsidiaries acquired through business combinations under the same control their
operating results and cash flows are included in the consolidated financial statements from
the beginning of the current combination 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.Where the equity of an investee under common control is acquired in stages through
multiple transactions ultimately resulting in a business combination when preparing the
consolidated financial statements adjustments are made as if the entity had existed in its
current state from the time the ultimate controlling party obtained control. When preparing
comparative financial statements the relevant assets and liabilities of the acquiree are
consolidated into the Group's comparative consolidated financial statements limited to a
point in time not earlier than when both the Group and the acquiree were under the control
of the same ultimate controlling party. The net assets increased as a result of the
combination are used to adjust the relevant items under owner's equity in the comparative
financial statements. To avoid double-counting the value of the acquiree's net assets for
any long-term equity investment held by the Group before the combination is achieved the
related gains/losses other comprehensive income and other changes in net assets
recognized from the later of the date the original equity was acquired and the date the
176Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Company and the acquiree came under the control of the same ultimate controlling party
up to the combination date shall be offset against the opening retained earnings and
current gains/losses of the comparative reporting period respectively.For subsidiaries acquired through business combination under 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.For a business combination achieved in stages where equity interests in the acquiree are
obtained through multiple transactions and ultimately result in a business combination not
under common control the previously held equity interest shall be remeasured at its fair
value on the acquisition date. Any difference between the fair value and its carrying
amount shall be recognized in current investment income; with respect to the previously
held equity interest in the acquiree any amounts recognized in other comprehensive
income under the equity method as well as other changes in owners’ equity other than net
gains/losses other comprehensive income and profit distributions shall be reclassified to
current investment income in the period of the acquisition date. However this excludes
other comprehensive income arising from remeasurement of the net defined benefit
liability or asset of the investee.When the Group disposes of a portion of its long-term equity investment in a subsidiary
without losing control the difference in the consolidated financial statements between the
proceeds from the disposal and the subsidiary's share of net assets calculated
continuously from the acquisition date or combination date corresponding to the disposed
long-term equity investment is adjusted against capital premium or share premium. If the
capital reserve is insufficient to absorb the difference retained earnings are adjusted.If the Group loses control over an investee due to reasons such as the disposal of a
portion of its equity investment when preparing the consolidated financial statements the
remaining equity is remeasured at its fair value on the date of loss of control. The
difference between the total of the consideration received from the disposal of equity and
the fair value of the remaining equity minus the share of the original subsidiary's net
assets calculated continuously from the acquisition or combination date based on the
original shareholding percentage is recognized in investment income for the period in
which control is lost and goodwill is derecognized at the same time. Other comprehensive
income and other items related to the original equity investment in the subsidiary are
reclassified to investment income for the current period upon loss of control.
177Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
If the Group disposes of its equity investment in a subsidiary in stages through multiple
transactions until control is lost and if these transactions are part of a single transaction
package all transactions shall be accounted for as a single transaction of disposing of a
subsidiary and losing control; however the difference between the disposal proceeds and
the share of net assets of the subsidiary corresponding to the investment disposed of for
each disposal prior to the loss of control shall be recognized as other comprehensive
income in the consolidated financial statements and shall be reclassified to investment
income in the period in which control is lost.
8. Classification of Joint Venture Arrangements and Accounting Treatments for
Joint Operations
The Group's joint arrangements include 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 from or sells to the joint operation assets that do not constitute a business the
Group only recognizes the share of the other joint operators in the gains/losses arising
from the transaction.
9. Cash and Cash Equivalents
Cash in the Group's statement of cash flows refers to cash on hand and unrestricted
deposits. For the purpose of the statement of cash flows cash equivalents refer to highly
liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value with a holding period of not more than 3
months.
10. Foreign Currency Businesses and Translation of Foreign Currency Financial
Statements
(1) Foreign Currency Transactions
Foreign currency transactions of the Group are initially recognized at the exchange rate at
the beginning of the month of the transaction date (usually referring to the middle rate of
the foreign exchange rate announced by the People's Bank of China on the day the same
below) converting the foreign currency amount into the functional currency amount. 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
178Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
conversion difference was directly included in the current gains/losses.
(2) Translation of Foreign Currency Financial Statements
When preparing the consolidated financial statements the Group translates the financial
statements of overseas operations into RMB in which: assets and liabilities in the foreign
currency balance sheet are translated at the spot exchange rate on the balance sheet date;
owners' equity items except for "undistributed profits" are translated at the spot exchange
rate when the business occurs; the income and expense items in the income statement
are translated at the average exchange rate of the current period (the average exchange
rate of the month) on the date when the transactions occur. The conversion difference of
foreign currency statements arising from the aforementioned conversion is presented in
other comprehensive income item. The foreign currency cash flow is 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 is independently
presented in the cash flow statement.
11. Financial Instruments
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or financial liability when it becomes a party to the
contractual provisions of a financial instrument.If the following conditions are met a financial asset (or a part of a financial asset or a part
of a group of similar financial assets) shall be derecognized that is the previously
recognized financial asset shall be transferred from the balance sheet: 1) the right to
receive the cash flows of the financial asset expires; 2) When the financial assets are
transferred the Group has transferred almost all the risks and rewards of ownership of the
financial assets; 3) When a financial asset is transferred the Group neither transfers nor
retains substantially all the risks and rewards of ownership of the financial asset nor
retains control over the financial asset.When the current obligation of financial liabilities (or partial financial liabilities) has been
completely or partially discharged 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
contractual 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. When there is a material alteration of contractual 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. The difference between the book value of the derecognized part and
179Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
the consideration paid is included in the current gains/losses.All regular acquisitions or sales of financial assets are recognized and derecognized on a
transaction date basis.
(2) Classification and Measurement of Financial Assets
At initial recognition the Group's financial assets are classified into financial assets
measured at amortized cost financial assets measured at fair value through other
comprehensive income and financial assets measured at fair value through current
gains/losses according to the Group's business model for managing financial assets and
the contractual cash flow characteristics of financial assets. All affected related financial
assets will be reclassified if and only when the Group changes its business model for
managing financial assets.The Group classifies the financial assets meeting the following conditions simultaneously
as financial assets measured at amortized cost: * The business model for managing the
financial assets aims at collecting contractual cash flows. * The contractual terms of the
financial assets stipulate that the cash flows generated on specified dates solely represent
payments of principal and interest based on the outstanding principal amount. These
financial assets are initially measured at fair value and relevant transaction costs are
included into the initially recognized amount; subsequent measurement is carried out at
amortized cost. Except for those designated as 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 gains/losses as well as gains or losses
arising from derecognition shall be recorded into the current gains/losses.The Group classifies the financial assets meeting the following conditions simultaneously
as financial assets measured at fair value through other comprehensive income: * the
business model for managing this financial asset aims at both collecting contractual cash
flows and selling the financial asset. * The contractual terms of the financial assets
stipulate that the cash flows generated on specified dates solely represent payments of
principal and interest based on the outstanding principal amount. These financial assets
are initially measured at fair value and relevant transaction costs are included into the
initially recognized amount. Except for those designated as hedge items any other gains
or losses arising from such financial assets except for credit impairment losses or gains
exchange gains/losses and interest on the financial asset calculated using the effective
interest rate method are included in other comprehensive income; when financial assets
are derecognized the accumulated gains or losses previously included in other
comprehensive income shall be transferred from other comprehensive income and
included in the current gains/losses.
180Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
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-trading equity instrument investments as financial assets
measured at fair value through other comprehensive income. Such designation once
made may not be revoked. The non-trading equity instrument investments designated by
the Group to be measured at fair value through other comprehensive income are initially
measured at fair value and the relevant transaction costs are included in the initial
recognition amount; except for dividends obtained (except for the recovery of investment
costs) which are included in the current gains/losses other relevant gains and losses
(including exchange gains/losses) are included in other comprehensive income and shall
not be subsequently transferred to the current gains/losses. When they are derecognized
the cumulative gains or losses previously recognized in other comprehensive income are
transferred from other comprehensive income to retained earnings. Equity instrument
investments measured at fair value through other comprehensive income include: Equity
investments to be held in the long term as planned by the Group for strategic purpose with
no control joint control or significant influence and with no active market quotation.Financial assets other than those classified as financial assets measured at amortized cost
and financial assets measured at fair value through other comprehensive income. The
Group classifies them as financial assets measured at fair value through current
gains/losses. These financial assets are initially measured at fair value and the relevant
transaction costs are directly included in the current gains/losses. Gains or losses arising
from these financial assets are recorded into the current gains/losses.The contingent consideration recognized by the Group in a business combination not
under the same control which constitutes a financial asset is classified as financial assets
measured at fair value through current gains/losses.
(3) Classification Recognition and Measurement of Financial Liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities
measured at fair value through current gains/losses and other financial liabilities.
181Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Financial liabilities measured at fair value through current gains/losses include held-for-
trading financial liabilities and financial liabilities designated at initial recognition to be
measured at fair value through current gains/losses. Subsequent measurement is carried
out at fair value and gains or losses arising from changes in fair value as well as dividends
and interest expenses related to the financial liability are included in current gains/losses.Other financial liabilities are subsequently measured at amortized cost using the effective
interest rate method. The Group classifies financial liabilities except for the following items
as financial liabilities measured at amortized cost: * Financial liabilities measured at fair
value through current gains/losses including held-for-trading financial liabilities (including
derivative instruments belonging to financial liabilities) and financial liabilities designated to
be measured at fair value through current gains/losses. * Financial liabilities arising from
the transfer of financial assets not meeting the derecognition conditions or continuous
involvement in the transferred financial assets. * Financial guarantee contracts not
belonging to cases of above * or * and loan commitments at an 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 purchaser in a business combination not under the same control as measured at fair
value and changes thereof shall be recorded into current gains/losses.
(4) Impairment of financial instruments
Based on expected credit loss the Group recognizes impairment and provisions for losses
on financial assets measured at amortized cost debt investments measured at fair value
with changes in fair value recognized in other comprehensive income contract assets
lease receivables loan commitments and financial guarantee contracts.
1) Measurement of expected credit loss
Expected credit loss refers to the weighted average of the credit losses of financial
instruments weighted by the risk of default. Credit loss refers to the difference between all
contractual cash flows receivable under the contract and all expected cash flows to be
collected discounted by the Group using the original effective interest rate i.e. the
present value of all cash shortfalls.Expected credit loss over the entire lifespan refers to the expected credit loss caused by
all possible default events that may occur during the expected lifespan of a financial
instrument. Expected credit loss in the next 12 months refers to the expected credit loss
caused by a financial instrument default event that may occur within 12 months after the
balance sheet date (if the expected lifespan of the financial instrument is less than 12
months the actual expected lifespan applies) which is a part of the expected credit loss
over the entire lifespan.
182Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
For accounts receivable notes receivable receivables financing contract assets and other
receivables arising from daily operating activities such as sales of goods and rendering of
labor services if they do not contain significant financing components the Group adopts a
simplified measurement method to measure the loss provision at the amount equivalent to
the expected credit loss over the entire lifespan.For lease receivables receivables containing significant financing components and
contract assets the Group adopts the simplified measurement method to measure the loss
provision at the amount equivalent to the expected credit loss over the entire lifespan.For financial assets (such as debt investments other debt investments and other
receivables) loan commitments and financial guarantee contracts other than those
measured with the above-mentioned simplified measurement method the Group adopts
the general method (three-stage method) to accrue the expected credit loss. On each
balance sheet date the Group assesses whether there is a significant increase in credit
risk since initial recognition. If the credit risk has not increased significantly since initial
recognition it is in the first stage. In this case the Group accrues the loss provision at the
amount equivalent to the expected credit loss in the next 12 months and calculates the
interest income according to the book balance and the effective interest rate; if the credit
risk has increased significantly since initial recognition but credit impairment has not
occurred it is in the second stage. In this case the Group accrues the loss provision at an
amount equivalent to the expected credit loss over the entire lifespan and calculates the
interest income according to the book balance and the effective interest rate; if a credit
impairment occurs after initial recognition it is in the third stage. In this case the Group
accrues the loss provision at an amount equivalent to the expected credit loss over the
entire lifespan and calculates the interest income at amortized cost and effective interest
rate.For financial instruments with low credit risk on the balance sheet date the Group
assumes that there is no significant increase in their credit risk since initial recognition.Regarding the Group's criteria for determining significant increases in credit risk and the
definition of assets with credit impairment please refer to Note XI.1(2) for disclosure.When the Group uses the expected credit loss model to assess the impairment of financial
instruments and contract assets the expected changes in the debtors' credit risk are
inferred based on historical repayment data and in combination with economic policies
macroeconomic indicators industry risks and other factors. Different estimates may affect
the provision for impairment therefore the provision for impairment already made may not
be equal to the actual amount of impairment loss in the future.
2) Portfolio category and determination basis of provision for impairment made by
183Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
portfolio with credit risk characteristics
The Group assesses the expected credit loss of financial instruments on an individual and
portfolio basis. When assessing on a portfolio basis the Group divides financial
instruments into different groups based on common credit risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial
instrument credit risk rating and aging of receivables.
3) Judgment criteria for individual provision for impairment of bad debts based on
individual basis
If the credit risk characteristics of a certain customer are significantly different from those
of other customers in the portfolio or if the credit risk characteristics of that customer have
changed significantly such as amounts due from related parties; receivables that are in
dispute with the counterparty or involve litigation or arbitration; receivables for which there
are clear indications that the debtor is highly unlikely to be able to fulfill its repayment
obligations etc.
4) Write-off of provision for impairment
When the Group no longer reasonably expects to recover all or part of the cash flows from
financial asset contracts the Group directly reduces the carrying amount of the financial
asset. If the written-down financial assets are recovered later they are included in the
current gains/losses as the reversal of the impairment loss.
(5) Recognition and Measurement of Financial Asset Transfers
The Group derecognizes the financial assets that meet one of the following conditions: *
the contractual right to receive the cash flow from the financial assets is terminated; * The
financial assets have been transferred and the Group has transferred almost all the risks
and rewards of ownership of the financial assets; * The financial assets have been
transferred and the Group has neither transferred nor retained almost all risks and
rewards of ownership of the financial assets nor has it retained control over the financial
assets.If the overall transfer of financial assets fulfills the requirements for derecognition the
difference 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 gains/losses.If the partial transfer of financial assets satisfies the conditions for derecognition the entire
184Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
book value of the transferred financial assets will be apportioned between the
derecognition portion and the non-derecognition portion according to their relative fair
values and the consideration received for the transfer and the amount corresponding to
the derecognition of the cumulative amount of changes in fair value originally included in
other comprehensive income that should be apportioned to the derecognition part (the
contractual terms of the transferred financial asset stipulate that cash flows generated on
specific dates are solely payments of principal and 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 gains/losses.
(6) 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 the former the instrument is a financial liability of the issuer; if the
latter the instrument is an equity instrument of the issuer. In some cases a financial
instrument contract requires the Group to use or be able to 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 or entirely or partially based on changes in
variables other than the market price of the Group's own equity instruments (such as
interest rates prices of certain commodities or prices of certain financial 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
185Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
classified as a financial liability.If financial instruments or their components are financial liabilities the Group will include
interest dividends gains or losses and gains or losses arising from redemption or
refinancing etc. in the current gains/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.
(7) Offset of 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. However when the following conditions are met
simultaneously the net amount after mutual offset is presented in the balance sheet: (1)
the Group has the legal right to offset the recognized amount and such legal right is
currently enforceable; (2) the Group plans to settle them on a net basis or realize the
financial assets and settle the financial liabilities at the same time.
12. Notes Receivable
For notes receivable the Group shall measure the provision for loss based on the
expected credit loss amount over 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 for Combination Determination
Bank acceptance bills The accepter shall be a bank with high credit level and low risks
Commercial acceptance bills Classified by credit risk of accepters (the same as accounts receivable)
13. Accounts receivable
For accounts receivable and contract assets excluding significant financing composition
the Group shall measure the provision for loss according to the expected credit loss
amount over the entire period of existence.For accounts receivable contract assets and lease payment receivable including
significant financing composition the Group shall always measure the provision for loss
according to the expected credit loss amount over the period of existence.Except the accounts 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 for Combination Determination
Aging Combination This portfolio is accounts receivable with aging as the credit risk feature
Related party portfolio The accounts receivable from the other entities within the consolidation scope
186Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
14. Receivables Financing
The Group’s receivables financing is based on expected credit losses and provision is
made for impairment reserves in accordance with the expected credit loss measurement
method for notes receivable.
15. Other Receivables
The Group measures the provision for losses of other receivables as below: * for financial
assets with no significant increase in credit risk since initial recognition the Group
measures the provision for loss according to the amount of expected credit loss in the next
12 months; * for financial assets whose credit risk has increased significantly since initial
recognition the Group measures the provision for loss at an amount equivalent to the
expected credit loss of the financial instrument during the entire lifespan; * for purchased
or internally generated financial assets which have undergone credit impairment the
Group measures the provision for loss at an amount equivalent to the expected credit loss
over the entire lifespan. 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 for Combination Determination
Aging Combination This portfolio consists of other receivables with aging as the credit risk feature.Low-risk portfolio This portfolio's credit risk characteristics are other receivables with extremely low risk such aspetty cash security deposits and deposits.Related party portfolio This portfolio consists of other receivables from entities within the Group's consolidation scope.
16. Long-term Receivables
By determining whether the credit risk of long-term 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 for long-term 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 for Combination Determination
Financing Lease
Combination Uses long-term receivables related to the financing lease as the credit risk characteristics.
17. Inventories
The Group's inventories mainly include raw materials products in process semi-finished
products products on hand and entrusted processing materials.The perpetual inventory system is adopted and inventories are valued at actual cost upon
acquisition; the actual cost of inventories that have undergone requisition or dispatch is
187Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
determined using the weighted average method. Low-value consumables and packaging
are amortized through the one-off charge-off method.For merchandise inventories directly for sale such as finished goods goods in process
and materials for sale their net realizable values are determined at the estimated selling
prices of the inventories minus the estimated selling expenses and relevant taxes and
surcharges; the net realizable value of material inventory held for production purposes is
determined by subtracting the estimated costs to be incurred until completion estimated
sales expenses and related taxes from the estimated selling price of the finished products
produced. For inventories with large quantity and low unit price the provision for inventory
depreciation is made according to the inventory category; for inventories related to the
product series produced and sold in the same area with the same or similar end use or
purpose and difficult to be measured separately from other items the provision for
inventory depreciation is made on a consolidated basis.The net realizable value refers in the ordinary course of business to the amount after
deducting the estimated cost of completion estimated sale expenses 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 the purpose of
inventories and the effect of events after the balance sheet date.After recognizing the provision for inventory depreciation if the factors which caused a
write-down of inventories have disappeared causing the net realizable value of inventories
to be higher than their book value the amount of the write-down shall be reversed within
the original amount of provision for inventory depreciation. The reversed amount shall be
included in the current gains/losses.
18. Contract Assets
(1) Recognition methods and standards for 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 the products has been delivered but the payment is also
dependent on the delivery of the other product the Group recognizes the right to receive
payment as a contract asset.
(2) Determination Method and Accounting Treatment Method of Expected Credit
Loss of Contract Assets
The method for determining the expected credit losses of contract assets involves
measuring the impairment losses of contract assets by referencing the method used for
the impairment loss measurement of receivables as previously described.
188Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
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 amount of the current provision for
impairment of contract assets the Group recognizes the difference as an impairment loss
by debiting “impairment loss on assets” and crediting “provision for impairment of contractassets”. On the contrary the Group recognizes the difference as an impairment gain and
makes the opposite accounting records.If the Group actually incurs a credit loss and determines that the relevant contract assets
cannot be recovered and the write-off is approved the "provision for impairment of
contract assets" is debited and the "contract assets" is credited according to the approved
write-off amount. If the write-off amount is greater than the provision for losses that has
been made the difference is debited to "losses from asset impairment".
19. Assets relating to contract costs
(1) Method for determining the amount of assets relating to contract costs
The Group’s assets related to contract costs include contract performance costs and
contract acquisition costs.Contract performance cost refers to the cost incurred by the Group to perform a contract. If
the contract performance cost does not fall within the scope of other accounting standards
for business enterprises and meets the following conditions at the same time it is
recognized as an asset under contract performance cost: this cost is directly related to a
current or expected contract including direct labor direct materials manufacturing
expenses costs clearly borne by the customer as well as other costs incurred only due to
this contract; this cost increases the Group's future resources to meet its performance
obligations; this cost is expected to be recovered.Contract acquisition cost refers to the incremental cost incurred by the Group to obtain the
contract that is expected to be recovered. It is recognized as an asset under contract
acquisition cost; if the amortization period of the asset does not exceed one year the
asset is included in the current gains/losses when the amortization 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 recoverable incremental cost (such as travel expenses incurred
regardless of whether the contract is obtained etc.) are included in the current
gains/losses when they are incurred except when clearly borne by the customer.
(2) Amortization of assets relating to contract costs
The Group’s assets related to contract costs are amortized on the same basis as the
commodity revenue recognition related to the asset and included in the current
gains/losses.
189Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Impairment of assets relating to contract costs
When determining the impairment loss of assets related to contract costs the Group first
determines the impairment loss of other assets related to the contract recognized in
accordance with other relevant accounting standards for business enterprises; if its book
value is higher than the difference between the remaining consideration expected to be
obtained by the Group from the transfer of the goods related to the asset and the
estimated cost to be incurred for the transfer of the relevant goods the excess shall be
provided for impairment and recognized as asset impairment loss.If the impairment 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 gains/losses 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 are mainly investments in subsidiaries and
associates.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 collectively control the arrangement.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 statements. 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.
190Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
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 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 will 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 for by the equity method the relevant other
comprehensive income accounted for 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
before the purchase date is designated as the financial assets measured at fair value
through other comprehensive income the cumulative gains or losses of the equity
originally recognized in other comprehensive income shall be transferred from other
comprehensive income and recognized in retained earnings; if it is a financial asset
measured at fair value through current gains/losses the gains or losses of the equity
originally included in the gains/losses from changes in fair value need 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 above long-term equity investments obtained through business
combinations long-term equity investments obtained through cash payments are
recognized as investment costs based on the actual purchase price paid; for long-term
191Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
equity investments acquired by issuing equity securities the fair value of the issued equity
securities is taken as the investment cost; for long-term equity investments invested by
investors the value agreed in the investment contract or agreement shall be taken as the
investment cost.The Group calculates its investments in subsidiaries through the cost method and its
investments in joint ventures and associates 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.For the long-term equity investment whose subsequent measurement adopts the equity
method the book value of the long-term equity investment will increase or decrease
accordingly with the change of the owner's equity of the investee. In recognizing the share
of net gains/losses of an investee the fair value of the identifiable assets of the investee at
the time of investment acquisition is used as the basis for recognizing the net profit of the
investee in accordance with the Group's accounting policies and accounting periods with
the offsetting of the portion of gains/losses on internal transactions with associates and
joint ventures that are attributable to the investor based on the proportion of the investor's
ownership interest and the net profit of the investee is recognized after adjustments are
made to the net profit of the investee.For the disposal of a long-term equity investment the difference between its book value
and the actual proceeds is included in the current investment income. For long-term equity
investments accounted for using the equity method the relevant other comprehensive
income accounted for using the original equity method shall be accounted for on the same
basis as the investee's direct disposal of relevant assets or liabilities when the equity
method is terminated. The owner's equity recognized due to other changes in owner's
equity of the investee other than net gains/losses other comprehensive income and profit
distribution shall be fully transferred into the current investment income when the equity
method is terminated.If common control or significant influence over an investee is lost due to the disposal of a
portion of the equity investment etc. the remaining equity interest after disposal is
reclassified to be accounted for in accordance with the relevant provisions of the
guidelines for the recognition and measurement of financial instruments and the
difference between the fair value of the remaining equity interest at the date of the loss of
192Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
common control or significant influence and its book value is recognized in current
gains/losses. Any other comprehensive income previously recognized under the equity
method for the original equity investment is accounted for on the same basis as if the
investee had directly disposed of related assets or liabilities once the equity method
ceases to apply and is carried forward proportionally. The owner's equity recognized due
to other changes in owner's equity of the investee other than net gains/losses other
comprehensive income and profit distribution shall be proportionally transferred into the
current investment income.In case that the control over the investee is lost due to the disposal of part of the long-term
equity investments if the remaining equity after disposal can exercise joint control or
significant influence on the investee the accounting method is changed to the equity
method. The difference between the book value of the disposed equity and the disposal
consideration shall be included in the investment income and the remaining equity is
adjusted as if it were accounted for using the equity method from the time of acquisition; if
the remaining equity after disposal is insufficient for exercising joint control or significant
influence on the investee accounting treatment shall be made in accordance with the
relevant provisions of the recognition and measurement standards for financial instruments.The difference between the book value of the disposed 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 remaining equity on the date of loss of control is
included in the current gains/losses.If the Group's transactions of step-by-step disposal of equity to loss of control do not
belong to a package deal 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
gains/losses of loss of control.
21. Investment properties
The term "investment property" refers to the real estate held for generating rent and/or
capital appreciation. Investment properties include leased land use rights land use rights
held for transfer upon appreciation and leased buildings etc. In addition if the 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 properties.
193Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
The initial measurement of the investment property shall be made at its cost. For
subsequent expenses related to the investment property if the economic benefits related
to the asset are likely to flow in and the cost can be measured reliably they are included in
the cost of the investment property. Other subsequent expenses are included in the
current gains/losses when incurred.The Group adopts the cost model for the subsequent measurement of investment
properties and depreciates or amortizes them in accordance with a policy consistent with
that for buildings or land use rights.For details of impairment test method and withdrawal method of impairment provision of
investment properties please refer to Note IV. 27. "Long-term assets impairment".The Group's investment properties adopt 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 properties shall refer to the depreciation policy
for buildings under fixed assets and the amortization policy for land use rights under
intangible assets.When owner-occupied real estate or inventories are changed into investment property or
investment property is changed into owner-occupied real estate the 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. When a property is converted to an investment property measured using the cost
model the book value before conversion is taken as the entry value after conversion;
when a property is converted into an investment property measured at fair value the fair
value on the conversion date is recognized as the entry value after conversion.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 the current gains/losses 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.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
194Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
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 the straight-line method except for fully
depreciated fixed assets that continue to be used and land that is separately valued. The
straight-line depreciation method (SLD) is adopted. The classified depreciation life
estimated net residual value rate and depreciation rate of the Group's fixed assets are as
follows:
No. Category Depreciation method Depreciation period Expected residual
Annual
(year) value rate (%) depreciation rate(%)
1 Housing and Straight-linebuilding depreciation 20-40 5-10.00 2.25-4.75
2 Machinery Straight-lineEquipment depreciation 5-10 5-10.00 9.00-19.00
3 Electronic Straight-lineEquipment depreciation 3-5 5-10.00 18.00-31.67
4 Transportation Straight-lineequipment depreciation 3-5 5-10.00 18.00-31.67
5 Other equipment Straight-linedepreciation 5 5-10.00 18.00-19.00
The estimated useful life estimated net salvage value and depreciation method of fixed
assets are reviewed at the end of each year. Accounting estimate changes are applied
when changes are required.
23. Construction in progress
The cost of construction in progress is determined based on actual project expenditures
including all necessary project expenditures incurred during construction borrowing costs
to be capitalized before the project reaches its predetermined usable state and other
related expenses etc.On the date when the construction in progress reaches its intended usable 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.Construction in progress is transferred to fixed assets upon reaching the predetermined
usable state with the criteria as follows:
Item Criteria for carrying forward fixed assets
The main construction project and ancillary projects are substantially completed meeting
the predetermined design requirements. Upon joint acceptance by the Company’s
Housing and building Engineering Department and units responsible for surveying design construction
supervision etc. and government departments such as the Fire Services Department and
the Housing Authority and reaching the predetermined usable state following process
195Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Criteria for carrying forward fixed assets
approval it is transferred to fixed assets.The equipment management department and the equipment manufacturer are jointly
Machinery Equipment responsible for the installation and commissioning of the equipment including hardwaredebugging process conditions debugging etc. Upon completion of debugging and reaching
the predetermined usable state following process approval it is transferred to fixed assets.
24. Borrowing costs
The Group capitalizes borrowing costs directly attributable to the acquisition construction
or production of qualifying assets as part of the cost of those assets and other borrowing
costs are included in the current gains/losses. The assets that meet the capitalization
conditions determined by the Group include the borrowing costs of fixed assets
investment real estate and inventories that need more than one year of acquisition and
construction or production activities to reach the expected serviceable or marketable
status. Capitalization starts when asset expenditures have been incurred borrowing costs
have been incurred and necessary purchasing construction or production activities have
begun to bring the assets to their intended usable or marketable status; when the acquired
and constructed or produced assets that meet the capitalization conditions have reached
the working condition for their intended use or sale the capitalization is ceased and the
borrowing costs incurred thereafter are included in the current gains/losses. 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.During each accounting period within the capitalization process the Group recognizes the
capitalization amount of borrowing costs using the following method: for specialized
borrowings the capitalization amount is based on the actual interest expenses incurred in
the current period after deducting the interest income earned from unused borrowing
funds deposited in the bank or investment income earned from temporary investments;
where general borrowings are used they shall be determined by multiplying the weighted
average of asset disbursements of the part of accumulated asset disbursements
exceeding specialized borrowings by the capitalization rate of used general borrowings
and the capitalization rate is calculated and determined according to the weighted average
interest rate of the general borrowings.
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.
196Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Initial Measurement
On 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: * initial
measurement amount of the lease liabilities; * lease payment amount paid on or before
the start date of the lease term. If there is any lease incentive the lease incentive amounts
that have been enjoyed are deducted; * the initial direct costs incurred i.e. the
incremental costs incurred in obtaining the lease agreement; * the cost 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 upon in the
lease terms except for those incurred for the production of inventory.
(2) Subsequent Measurement
After the commencement date of the lease term the Group adopts the cost model to carry
out subsequent 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.
(3) Depreciation of right-of-use assets
From the commencement date of the lease term the Group accrues 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 gains/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 using the straight-
line method.When determining the depreciation life of right-of-use assets the Group follows the
following principles: if it can be reasonably determined that the ownership of the leased
assets will be obtained at the expiration of the lease term the depreciation is accrued over
the remaining service life of the leased assets; if it cannot be reasonably determined that
the ownership of the leased asset can be obtained at the expiration of the lease term the
depreciation is accrued over the shorter of the lease term or the remaining service life of
the leased asset.
(4) 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
197Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Intangible assets of the Group include land use rights patented technologies non-
patented technologies etc. They are measured at the actual cost on acquisition.Specifically for purchased intangible assets the actual price paid and other relevant
expenses are taken as the actual cost; for intangible assets invested by investors the
value agreed in the investment contract or agreement is taken as the actual cost. However
if the value agreed in the contract or agreement is not fair the actual cost is determined
according to the fair value; for intangible assets such as patents acquired from a merger
not under the same control if they were owned by the acquired party but not recognized in
its financial statements they shall be recognized as intangible assets at fair value upon
initial recognition of the acquired party's assets.
（1） Service life and its determination basis estimation amortization method or
review procedure
Intangible assets of the Group include land use rights patented technologies non-
patented technologies etc. They are measured at the actual cost on acquisition.Specifically for purchased intangible assets the actual price paid and other relevant
expenses are taken as the actual cost; for intangible assets invested by investors the
value agreed in the investment contract or agreement is taken as the actual cost. However
if the value agreed in the contract or agreement is not fair the actual cost is determined
according to the fair value; for intangible assets such as patents acquired from a merger
not under the same control if they were owned by the acquired party but not recognized in
its financial statements they shall be recognized as intangible assets at fair value upon
initial recognition of the acquired party's assets.
（2） Scope of R&D expenditures and related accounting treatments
The scope of the Group's R&D expenditures includes salaries of R&D personnel
direct input costs depreciation and amortization design fees equipment testing fees fees
for R&D outsourced to external parties and other expenses.The Group classifies its internal research and development project expenditures into
expenditure on the research phase and expenditure on the development phase based on
the nature of the expenditures and the degree of uncertainty in whether the R&D
activities will result in an intangible asset. Expenditure on the research phase is
recognized in current gains/losses when incurred. Expenditure on the development phase
is capitalized when all of the following conditions are met:
The Group has assessed the technical feasibility of completing the intangible asset so that
it will be available for use or sale;
The Group intends to complete the intangible asset and use or sell it;
It is probable that the intangible asset will generate future economic benefits;
198Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
The Group has the adequate technical financial and other resources to complete the
development and to use or sell the intangible asset;
The expenditure attributable to the development phase of the intangible asset can be
measured reliably. Development phase expenditures not meeting these capitalization
criteria are recognized in current gains/losses for the period when incurred.
27. Impairment of long-term assets
For non-current non-financial assets of fixed assets projects under construction intangible
assets with limited service life investment property measured using the cost model and
long-term equity investments in subsidiaries joint ventures and associates the Group
shall assess at the balance sheet date whether there is any indication of impairment. If
such indication exists the recoverable amount shall be estimated and an impairment test
conducted. Goodwill intangible assets with indefinite service life and intangible assets not
yet available for use shall be tested for impairment at the end of each year regardless of
whether there is any indication of impairment.
（1） Impairment of non-current assets other than financial assets (except goodwill)
If the impairment test result shows that the recoverable amount of an asset is less than its
book value an impairment provision for the difference shall be made and recorded in
impairment losses. The recoverable amount is the higher of the net amount of the asset's
fair value less disposal costs and the present value of the asset's estimated future cash
flows. The fair value of the asset is determined according to the sales agreement price in
an arm's length transaction; if there is no sales agreement but there is an active market for
the asset the fair value is determined based on the buyer's offer for the asset; if there is
neither a sales agreement nor an active market for the asset the fair value is estimated
based on the best available information. Disposal costs include legal fees related taxes
freight charges and other direct costs incurred to bring the asset to a saleable condition.The present value of the asset's estimated future cash flows is determined by discounting
the asset's estimated future cash flows during continued use and upon disposal using an
appropriate discount rate. Impairment provisions for assets are calculated and recognized
on the basis of individual assets. If it is difficult to estimate the recoverable amount of an
individual asset the recoverable amount is determined for the asset group to which the
asset belongs. An asset group is the smallest combination of assets that generates cash
inflows independently.
（2） Impairment of goodwill
In the impairment test the book value of goodwill presented separately in the financial
statements is allocated to the asset group or groups of asset groups expected to benefit
from the synergies of the business combination. If the impairment test result shows that
199Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
the recoverable amount of the asset group or groups of asset groups containing the
allocated goodwill is less than its book value the corresponding impairment loss is
recognized. The amount of impairment loss is first used to reduce the book value of
goodwill allocated to the asset group or groups of asset groups and then the book value of
other assets is reduced proportionately based on their respective book values within the
asset group or groups of asset groups (excluding goodwill).The methodology parameters and assumptions for the goodwill impairment test are
detailed in Note VI.19.Once recognized the above impairment losses on assets shall not be reversed in
subsequent accounting periods.
28. Long-term deferred expenses
The Group's long-term deferred expenses include renovation costs mold costs and so on.These expenses are amortized evenly over the benefit period. If a long-term deferred
expense item cannot generate benefits for future accounting periods the unamortized
value of the item shall be fully transferred to current gains/losses.
29. Contract liabilities
Contract liabilities refer to the obligation of the Group to transfer goods to customers for
consideration received or receivable from customers. Before the transfer of goods if the
customer has paid the consideration or if the Group has obtained the right to
unconditionally collect the contract consideration the contract liabilities shall be
recognized based on the amount received or receivable at the earlier of the customer's
actual payment date or the payment due date.
30. Employee compensation
Employee compensation of the Group includes short-term compensation post-
employment benefits termination benefits and other long-term benefits.Short-term compensation mainly includes wages bonuses allowances and subsidies
employee welfare expenses medical insurance maternity insurance employment injury
insurance housing provident fund labor union expenses staff education expenses and
non-monetary benefits. During the accounting period when employees provide services
the actual short-term compensation is recognized as a liability and included in current
gains/losses or the cost of related assets depending on 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
200Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
liabilities and shall be included in the current gains/losses 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 unilaterally withdraw the plan for terminating labour
relations or layoff proposal the liabilities arising from dismissal welfare shall be recognized
and included in current gains/losses at the earlier of the date the related costs of dismissal
welfare in connection with a restructuring are recognized or the date when the dismissal
welfare cannot be withdrawn unilaterally. However dismissal welfare not fully paid within
12 months after Reporting Period should be handled the same as other long-term
employees’ payrolls.The internal employee retirement plan is treated by adopting the same principle as the
above dismissal welfare. The Group would record 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 gains/losses (dismissal 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 meeting the defined
contribution plan should be accounting disposed according to the defined contribution
plan while the rest should be disposed according to the defined benefit 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 lease commencement date.
1) Lease payments
Lease payment amount refers to the amount paid by the Group to the lessor in relation to
the right to use the leased asset during the lease term including: * fixed payment amount
and substantially fixed payment amount with lease incentives (if any) deducted from the
relevant amount; * The amount of variable lease payments that depend on an index or
ratio which is determined at the time of initial measurement based on the index or ratio at
the commencement date of the lease term; * the exercise price of the purchase option
when the Group reasonably determines that the purchase option will be exercised; * The
amount needs to be paid for exercising the lease termination option when the lease term
reflects that the Group will exercise the option to terminate the lease; * The amount
expected to be paid according to the residual value of the guarantee provided by the
Group.
2) Rate of discount
201Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
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 borrowing rate will be used as the rate of discount. The incremental borrowing
rate 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: * the Group's own situation that is the company's solvency and credit
status; * The term of the "borrowing" i.e. the lease term; * the amount of "borrowed"
funds i.e. the amount of the lease liability; * "collateral conditions" i.e. the nature and
quality of the subject assets; * economic circumstances including the jurisdiction in which
the lessee is located pricing currency time of contract signing 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) Subsequent Measurement
After the lease commencement date the Group measures the lease liability in accordance
with the following principles: * when recognizing the interest on the lease liability the
carrying amount of the lease liability is increased; * when the lease payment is made the
book amount of the lease liability is reduced; * when the lease payment changes due to
revaluation or lease change the book value of the lease liability is re-measured.The Group calculates the interest expenses of the lease obligations during each period of
the lease term at a fixed periodic interest rate and includes them (except those that shall
be capitalized) in current gains/losses. 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 lease commencement date 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 amount of
the right-of-use asset has been reduced to zero but the lease liability still needs to be
further reduced the Group recognizes the remaining amount in current gains/losses. *
there have been changes in substantially fixed payments (in which case the original
discount rate is adopted); * there have been changes in the estimated payable amount of
202Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
the guarantee residual value (in which case the original discount rate is adopted); * there
have been changes in the index or ratio used to determine the lease payments (in which
case the revised discount rate is adopted); * there have been changes in the valuation
results of the purchase option (in which case the revised discount rate is adopted); *
there have been changes in the evaluation results or actual exercise of the option to renew
or terminate the lease (in which case the revised discount rate is adopted).
32. Provisions
When an obligation related to a contingency meets the following conditions simultaneously
it is recognized as an estimated liability: (1) the obligation is a present obligation
undertaken by the Group; (2) the performance of the obligation is likely to result in an
outflow of economic benefits; (3) the amount of the obligation can be reliably measured.The provisions are initially measured in accordance with the optimal estimate of the
necessary expenses for the fulfillment of the current obligation with the risks related to
contingent matters uncertainty the time value of money and other factors taken into
consideration. The Group reviews the current best estimate of provisions at the balance
sheet date and adjusts the carrying amount of the provision as necessary.When all or some of the expenses necessary for the liquidation of provisions are 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 book value of the
estimated liabilities.
33. Preferred shares perpetual bonds and other financial instruments
Preferred shares and perpetual debt classified as debt instruments shall be initially
measured at their fair value less transaction costs and subsequently measured at
amortized cost using the effective interest rate method. Interest expenses or dividend
distributions thereon shall be accounted for in accordance with borrowing costs. Gains or
losses arising from their repurchase or redemption shall be recognized in current
gains/losses.For preferred shares and perpetual bonds classified as equity instruments the
consideration received upon issuance net of transaction costs is added to owners' equity.Their interest expense or dividend distributions are treated as profit distribution and any
repurchase or cancellation is treated as a change in equity.
34. Principles of revenue recognition and measurement methods
(1) General principles
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.
203Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
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.Performance obligation refers to the Group's commitment in a contract to transfer clearly
distinguishable goods to the customer. A performance obligation of the Group is deemed
as an obligation to be fulfilled within a certain period of time if one of the following
conditions is met; otherwise the performance obligation is satisfied at a point in time:
* The customer obtains and consumes the economic benefits brought by the Group's
performance at the same time as the Group performs the contract;
* The customer is capable of controlling the goods 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 receive payment for the performance accumulated to date
throughout the 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 in time when the customer obtains control of the relevant goods or
services. When determining whether a customer has obtained control over goods the
Group considers the following indications:
* The Group has the current right to receive the payment for the goods that is the
customer has the current obligation to pay for the goods;
* The Group has transferred the legal ownership of the goods to the customer that is the
customer already has legal ownership of the goods;
* The Group has physically transferred the goods to the customer that is the customer
has physically taken possession of the goods;
* The Group has transferred the significant risks and rewards pertaining to the ownership
of the goods to the customer that is the customer has obtained the significant risks and
rewards;
* The customer has accepted the goods or services etc.;
* Other signs indicating that the customer has gained control of the goods.The Group's right to consideration in exchange for goods or services that the Group has
transferred to a customer is presented as a contract asset. An impairment loss is
204Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
recognized for contract assets based on expected credit losses. The Group's unconditional
right to receive consideration from a customer is presented as a receivable. The Group's
obligation to transfer goods or services to a customer for which the Group has received
consideration from the customer is presented as a contract liability.
(2) Principles of revenue measurement
1) If the contract contains two or more performance obligations at the commencement
date of the contract the Group will allocate the transaction price to each single
performance obligation based on the relative proportion of the stand-alone selling price of
the goods or services promised under each single performance obligation. Revenue is
measured at the transaction price of each single performance obligation.
2) The transaction price is the amount of consideration that the Company 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 recognised by the Group does not exceed the amount for
which it is highly probable that cumulative revenue already recognised will not be
significantly reversed when the related uncertainties are resolved. Amounts expected to be
refunded to the customer are treated as a liability and not included in the transaction price.
3) Where a contract contains variable consideration such as cash discounts and price
protection included in certain contracts between the Group and its customers the Group
determines the best estimate of variable consideration using the expected value method or
the most likely amount method. However the transaction price including variable
consideration is constrained to an amount that in relation to the cumulative revenue
already recognised is highly probable not to result in a significant reversal when the
related uncertainties are resolved.
4) For consideration payable to a customer the Group deducts such consideration from
the transaction price and reduces current revenue at the later of when the related revenue
is recognised and when the consideration is paid (or promised to be paid) to the customer
unless the consideration payable is in exchange for other distinct goods or services
obtained from the customer.
5) For sales with sales return clauses when the customer obtains control of the relevant
goods the Group recognizes the revenue at the amount of consideration expected to be
received due to the transfer of goods to the customer and recognizes the amount
expected to be refunded due to sales return as estimated liabilities; in addition the
balance of the expected book value of the returned goods at the time of transfer less the
expected cost of recovering the goods (including the impairment of the value of the
returned goods) is recognized as an asset i.e. the return cost receivable. The net amount
205Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
of the above asset cost is carried forward according to the book value of the transferred
goods at the time of assignment. On each balance sheet date the Group re-estimates the
future sales returns and re-measures the aforementioned assets and liabilities.
6) If there is a significant financing component in the contract the Group shall determine
the transaction price according to the payable amount that is assumed to be paid in cash
by the customer when the customer obtains the right of control over goods or services.The difference between the transaction price and the promised consideration in the
contract is amortized over the contract period using the effective interest method with the
discount rate being the one that discounts the nominal amount of the contract
consideration to the cash selling price of the goods. 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.
7) 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 service-type quality assurance where a separate service is provided in addition to the
assurance to the customer that the goods sold meet the established standards the Group
treats it as a single performance obligation and apportions a portion of the transaction
price to the service-type quality assurance based on the relative proportions of the
separate selling prices of the goods and the service-type quality assurance provided and
recognizes revenue 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.
8) When a contract modification occurs between the Group and a customer: * if the
modification adds distinct construction services and the contract price increases by an
amount that reflects the standalone selling price of the additional construction services the
Group accounts for the contract modification as a separate contract; * If the contract
modification does not meet the criteria in * and the construction services transferred
before the modification date are distinct from those not yet transferred the Group accounts
for the modification as a termination of the original contract. The remaining performance
obligations of the original contract and the modification are combined and treated as a new
contract. * If the contract modification does not meet the criteria in * and the
206Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
construction services transferred before the modification date are not distinct from those
not yet transferred the Group accounts for the modification as part of the original contract.The effect of the modification on revenue previously recognized is recognized as an
adjustment to revenue in the period in which the modification occurs.
(3) Specific methods
The revenue of the Group mainly consists of the income from main business and the
income from other businesses.* Revenue Recognized at a Point in 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 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.* Revenue Recognized Over Time
The Group's business contracts with customers for project construction operating leases
etc. are performance obligations performed within a certain period of time and revenue is
recognized according to the progress of the performance.
35. Government grants
The government grants of the Group are divided into asset-related government grants and
income-related government grants. Specifically asset-related government grants refer to
the government grants obtained by the Group for the purpose of purchasing constructing
or otherwise forming long-term assets; income-related government grants refer to those
other than asset-related government 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 income-
related government grants as a whole.If the government subsidies are monetary assets they shall be measured at the amount
207Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
actually received. For a subsidy allocated according to a fixed quota standard or when
there is conclusive evidence at the end of the year that the relevant conditions stipulated in
the financial support policies can be met and the financial support funds are expected to
be received the subsidy shall be measured according to the amount receivable; if the
government grants are non-monetary assets they are measured at fair value. Where the
fair value cannot be reliably obtained the grant is measured at a nominal amount (RMB 1).Asset-related grants shall be used to offset the book value of related assets or presented
as deferred income and shall over the life of the related asset be included in the current
gains/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
gains/losses of asset disposal.Income-related 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
gains/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 revenue and expenditure.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 current gains/losses;
3) Under any other circumstances the grants will be included in current gains/losses.
36. Deferred tax assets and deferred tax liabilities
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized
208Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
based on the difference (temporary difference) between the tax base and the carrying
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 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 is not a business
combination and which affects neither accounting profit nor taxable income (or deductible
losses) the corresponding deferred tax assets and deferred tax liabilities are not
recognized. On the balance sheet date the deferred tax assets and deferred 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 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.
37. 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 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 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 a lessee
1) Lease Recognition
On the lease commencement date the Group recognizes the right-of-use assets and
lease liabilities in respect of the lease. For the recognition and measurement of right-of-
209Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
use assets and lease liabilities please refer to Note IV "25. Right-of-use assets" and "31.Lease liabilities".
2) Lease Modification
A lease modification refers to a change in the scope consideration and term of lease
outside the original contract clauses including the addition or termination of the right to
use one or more leased assets and the extension or reduction of the lease term specified
in the contract. The effective date of lease modification refers to the date when both
parties reach an agreement on the lease modification.If there is any modification in the lease and the following conditions are met at the same
time the Group shall account for the lease modification as a separate lease: * the lease
modification expands the lease scope or extends the lease term by adding the right to use
one or more leased assets; * The increased consideration is equivalent to the amount of
the separate price of the expanded part of the lease scope or the extended part of the
lease term adjusted according to the contract situation.If the lease modification is not accounted for as a separate lease on the effective date of
the lease modification the Group amortizes the consideration of the contract after the
modification in accordance with the relevant provisions of the lease standards and re-
determines the lease term after the modification; and discounts the changed lease
payments using the revised discount rate to remeasure the lease liabilities. When
calculating the present value of the lease payment after the modification the Group uses
the interest rate implicit in the lease for the remaining lease period as the discount rate; if
the interest rate implicit in the lease for the remaining lease term cannot be determined
the Group adopts the lessee's incremental borrowing rate on the effective date of the lease
modification as the discount rate. With regard to the impact of the above-mentioned lease
liability adjustment the Group distinguishes the following situations for accounting
treatment: * If the lease modification narrows the lease scope or shortens the lease term
the lessee shall reduce the book value of the right-of-use assets accordingly and include
the relevant gains/losses of partial or complete termination of the lease in the current
gains/losses. * If other lease modifications result in the re-measurement of lease liabilities
the lessee correspondingly adjusts the book value of the right-of-use assets.
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 right-of-use assets and lease liabilities. The Group includes the
lease payments of short-term leases and low-value asset leases in the cost of relevant
assets or current gains/losses on a straight-line basis over each period of the lease term.
210Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) The Group as a 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.If a lease falls in one or more of the following circumstances the Group usually classifies it
as a finance lease: * the ownership of the leased asset will be transferred to the lessee at
the expiration of the lease term; * the lessee has the option to purchase the leased asset
and the purchase price is low enough compared with the fair value of the leased asset
when the option is expected to be exercised so it can be reasonably determined that the
lessee will exercise the option on the lease commencement date; * Although the
ownership of the asset will not be transferred the lease term covers most of the service
life of the leased asset; * On the lease commencement date the current value of the
lease receipts is almost equal to the fair value of the leased assets; * The leased asset
can only be used by the lessee if no major modification is made due to its special nature. If
a lease has one or more of the following signs the Group may also classify it as a finance
lease: * If the lessee cancels the lease the losses caused to the lessor by the
cancellation of the lease are to be borne by the lessee; * Gains or losses arising from
fluctuations in the fair value of the residual value of the asset are attributable to the lessee;
* The lessee has the ability to continue the lease to the next period at a rent far below the
market level.
1) Accounting Treatment for 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.When initially measuring the finance lease receivables the Group recognizes the net
investment in the lease as the entry value of the finance lease receivables.The net investment in the lease is the sum of the unguaranteed residual value and the
present value of the lease receipts not received at the commencement date of the lease
term discounted at the interest rate implicit in the lease. Lease receipts refer to the amount
that the lessor shall collect from the lessee due to the transfer of the right to use the leased
asset during the lease term including: * fixed payments and substantially fixed payments
to be paid by the lessee; if there are lease incentives the relevant amount of lease
incentives shall be deducted; * The amount of variable lease payments dependent on an
211Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
index or ratio. This amount is determined at the time of initial measurement based on the
index or ratio at the commencement date of the lease term; * The exercise price of the
call option provided that it can be reasonably determined that the lessee will exercise the
option; * The amount to be paid by the lessee for exercising the option to terminate the
lease provided that the lease term reflects that the lessee will exercise the option to
terminate the lease; * The residual value of the guarantee provided by the lessee the
party related to the lessee or an independent third party economically capable of fulfilling
the guarantee obligation to the lessor.Subsequent Measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each
period in the lease term. The periodic rate refers to the rate of discount implicit in lease
adopted to determine 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 there is a change in a finance lease and the following conditions are met at the same
time the Group shall account for the change as a separate lease: * The change expands
the scope of the lease by adding the right to use one or more leased assets; * The
increased consideration is equivalent to the amount of the separate price of the expanded
part of the lease scope adjusted according to the contract situation.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
During each period of the lease term the Group recognizes lease receipts from operating
leases as rental income on a straight-line basis.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
212Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
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 expenses
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 current
gains/losses in stages over the lease term on the same basis of recognition as rental
income.Depreciation
For fixed assets in assets under operating lease the Group adopts the depreciation policy
for similar assets to accrue depreciation; for other assets under operating lease a
systematic and reasonable method is adopted for amortization.Variable lease payments
The variable lease payments related to operating leases obtained by the Group that are
not included in the lease receipts are included in the current gains/losses when 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 lease receipts of
the new lease.
38. Fair value measurement
The Group measures equity instrument investments at fair value on each balance sheet
date. Fair value refers to the price that can be received from selling an asset or paid to
transfer a liability in an orderly transaction between market participants on the
measurement date.For assets and liabilities measured or disclosed at fair value in the financial statements
the fair value level to which they belong is determined according to the lowest level input
that is significant to the fair value measurement as a whole: Level 1 inputs refer to
unadjusted quoted prices in the active market for the same assets or liabilities that can be
obtained on the measurement date; level 2 inputs refer to inputs other than Level 1 inputs
that are directly or indirectly observable for the relevant assets or liabilities; level 3 inputs
are the unobservable inputs of related assets and liabilities.On each balance sheet date the Group re-evaluates the assets and liabilities continuously
measured at fair value recognized in the financial statements to determine whether there is
a conversion between the levels of fair value measurement.
213Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
39. Changes in significant accounting policies and accounting estimates
(1) Major changes in accounting policies
The Group has no changes in significant accounting policies during the current year.
(2) Major changes in accounting estimates
The Group has no significant changes in accounting estimates during the year.V. Taxes
1. Main types of taxes and tax rates
Category of taxes Tax basis Tax rate
Calculated the output tax at the tax rate and
paid the VAT by the amount after deducting
VAT the deductible input VAT in the currentperiod of which the VAT applicable to easy 1% 3% 5% 6% 9% 13%
collection won’t belong to the deductible input
VAT.Urban maintenance and
construction tax The circulating tax actually paid
5% 7% / See 2. Tax Preferences for
details
Education surcharge The circulating tax actually paid 3% / See 2. Tax Preferences for details
Local education surcharge The circulating tax actually paid 2% / See 2. Tax Preferences for details
Enterprise income tax Taxable income 25%/ See 2. Tax Preferences for details
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Electronic Technology Anhui Konka Anhui Tongchuang Shaanxi Konka Xingda
Hongye Bokang Precision Jiangsu Konka Smart Chengdu Konka Electronic 15%
Chongqing Optoelectronic Technology
Hong Kong Konka Kongdian Trading Jiali International Kongjietong Jiaxin
Technology Kongdian Investment Hong Kong Communications Zhongkang Storage 16.5%
Technology Xinying Semiconductor (Hong Kong)
Konka Europe 15%
Kanghao Technology 22.5%
Konka North America 21%
The parent company and other subsidiaries 25%
Remarks: According to the Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Taxation Administration resident enterprises without
business establishment or places of legal persons should be tax payment enterprises withthe administrative measures of income tax of “unified computing level-to-leveladministration local prepayment liquidation summary and finance transfer”. It came into
force from January 1 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 January
1 2008 and will be final settled uniformly by the Company at the year-end.
214Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
2. Tax incentives
(1) According to the announcement of the State Taxation Administration No. 12 of 2023:
small low-profit enterprises shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20% which shall be continued until 31 December
2027. Resource tax (excluding water resource tax) urban maintenance and construction
tax property tax urban land use tax stamp duty (excluding stamp duty on securities
transactions) farm land occupation tax education surcharge and local education
surcharge shall be levied by half on small-scale VAT taxpayers small low-profit
enterprises and individually-owned businesses from January 1 2023 to December 31
2027. The Company's subsidiaries Konka Entrepreneurship Service Yibin Konka
Incubator Yibin Wisdom Anlu Konka Konka Tong Zhongkang Semiconductor (Shaoxing)
Shengxing Industrial Konka Suiyong Nantong Konka Digital Technology Xiaojia
Technology Shanghai Konka Guizhou Konka New Materials Ji'an Konka Nanjing Konka
Smart Appliance Xi'an Konka Intelligent Chongqing Konka Yiyun Zhejiang Konka
Electronics Zhejiang Konka Technology Industry Konka North China Zhitong Technology
and Shenzhen Nianhua enjoyed the aforementioned tax incentive policies during the
Reporting Period.
(2) On October 28 2025 Anhui Konka a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Anhui Province the Department of Finance of Anhui Province and the
Anhui Provincial Tax Service of the State Taxation Administration with the certificate
number GR202534004181 which is valid for three years. According to relevant tax
regulations Anhui Konka will enjoy the relevant tax incentives for high-tech enterprises for
three consecutive years from 2025 to 2027 paying enterprise income tax at a preferential
rate of 15%.
(3) On October 16 2023 Chongqing Optoelectronic Technology a subsidiary of the
Company obtained the Certificate of High-Tech Enterprise jointly issued by the Chongqing
Municipal Science and Technology Bureau the Chongqing Municipal Finance Bureau and
the Chongqing Municipal Tax Service of the State Taxation Administration with the
certificate number GR202351100426 which is valid for three years. According to relevant
tax regulations Chongqing Optoelectronic Technology will enjoy the relevant tax
incentives for high-tech enterprises for three consecutive years from 2023 to 2025 paying
enterprise income tax at a preferential rate of 15%.
(4) On October 28 2025 Anhui Tongchuang a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Anhui Province the Department of Finance of Anhui Province and the
215Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Anhui Provincial Tax Service of the State Taxation Administration with the certificate
number GR202534002702 which is valid for three years. According to relevant tax
regulations Anhui Tongchuang will enjoy the relevant tax incentives for high-tech
enterprises for three consecutive years from 2025 to 2027 paying enterprise income tax at
a preferential rate of 15%.
(5) On December 19 2025 Bokang Precision a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Guangdong Province the Department of Finance of Guangdong Province
and the Guangdong Provincial Tax Service of the State Taxation Administration with the
certificate number GR202544008694 which is valid for three years. According to relevant
tax regulations Bokang Precision will enjoy the relevant tax incentives for high-tech
enterprises for three consecutive years from 2025 to 2027 paying enterprise income tax at
a preferential rate of 15%.
(6) On December 25 2025 Electronic Technology a subsidiary of the Company received
the Certificate of High-Tech Enterprise jointly issued by the Shenzhen Science and
Technology Innovation Committee the Shenzhen Finance Bureau and the Shenzhen Tax
Service of the State Taxation Administration with the certificate number GR202544205959
which is valid for three years. According to relevant tax regulations Electronic Technology
will enjoy the relevant tax incentives for high-tech enterprises for three consecutive years
from 2025 to 2027 paying enterprise income tax at a preferential rate of 15%.
(7) On November 19 2024 Xingda Hongye a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Guangdong Province the Department of Finance of Guangdong Province
and the Guangdong Provincial Tax Service of the State Taxation Administration with the
certificate number GR202444002600 which will be valid for three years. According to
relevant tax regulations Xingda Hongye is entitled to relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2024 to 2026 and pays enterprise
income tax at a preferential tax rate of 15%.
(8) On November 29 2023 Shaanxi Konka a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Shaanxi Province the Department of Finance of Shaanxi Province and the
Shaanxi Provincial Tax Service of the State Taxation Administration with the certificate
number GR202361002167 which is valid for three years. According to relevant tax
regulations Shaanxi Konka will enjoy the relevant tax incentives for high-tech enterprises
for three consecutive years from 2023 to 2025 paying enterprise income tax at a
preferential rate of 15%.
216Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(9) On November 6 2023 Jiangsu Konka Smart a subsidiary of the Company obtained
the Certificate of High-Tech Enterprise jointly issued by the Department of Science and
Technology of Jiangsu Province the Department of Finance of Jiangsu Province and the
Jiangsu Provincial Tax Service of the State Taxation Administration with the certificate
number GR202332008044 which is valid for three years. According to relevant tax
regulations Jiangsu Konka Smart will enjoy the relevant tax incentives for high-tech
enterprises for three consecutive years from 2023 to 2025 paying enterprise income tax at
a preferential rate of 15%.
(10) In accordance with the Announcement on the Renewal of the Enterprise Income Tax
Policy for Western Development Enterprises (Ministry of Finance State Taxation
Administration National Development and Reform Commission Announcement No. 23 of
2020) 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 60% of its gross income in the current
year is entitled to a reduced corporate income tax rate of 15%. Chengdu Konka
Electronics a subsidiary of the Company enjoys the preferential tax policy for Western
Development.
(11) According to the CS [2011] No. 100 published by the Ministry of Finance and the
State Taxation Administration 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
portion of the actual VAT burden exceeding 3% shall be refunded immediately upon
collection. The Company’s subsidiaries Electronic Technology and Anhui Tongchuang all
enjoy this preferential policy.VI. Notes to major items in the consolidated financial statements
Unless otherwise noted for the financial statement data disclosed below "beginning of the
year" refers to January 1 2025 "end of the year" refers to December 31 2025 "the
current year" refers to the period from January 1 2025 to December 31 2025 and "last
year" refers to the period from January 1 2024 to December 31 2024. The monetary unit
is renminbi.
1. Monetary funds
Item Ending balance Beginning balance
Cash on hand 208.19
Bank deposits 5169889627.52 2942927002.53
Other monetary assets 1144052257.53 1172840037.01
Total 6313941885.05 4115767247.73
217Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Of which: Total amount of funds deposited
overseas 1131315.16 16326669.23
Remarks: the ending balance of other monetary funds is mainly the balance of pledged
time deposits margin deposits and account balance on WeChat Alipay and other
platforms. For details of restricted funds please refer to "Note VI. 23. Assets with restricted
ownership or use right".
2. Trading financial assets
Item Ending balance Beginning balance
Financial assets measured at fair value through current
gains/losses 202027000.00 286648129.34
Of which: Investment in equity instruments 202027000.00 286648129.34
Total 202027000.00 286648129.34
3. Notes receivable
(1) Presentation of notes receivable by category
Item Ending balance Beginning balance
Bank acceptance bills 50977695.45 148019004.66
Commercial acceptance bills 26339290.11 21656171.50
Total 77316985.56 169675176.16
(2) Classified and listed by provision methods for bad debts
Ending balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision for bad debts by
single item
Provision for bad debts by
portfolio 77865496.73 100.00 548511.17 0.70 77316985.56
Of which: Bank acceptance
bills 50977695.45 65.47 50977695.45
Commercial acceptance bills 26887801.28 34.53 548511.17 2.04 26339290.11
Total 77865496.73 100.00 548511.17 0.70 77316985.56
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
218Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Amount Percentage
Provision Book value
(%) Amount percentage(%)
Provision for bad debts by
single item
Provision for bad debts by
portfolio 170126162.18 100.00 450986.02 0.27 169675176.16
Of which: Bank acceptance
bills 148019004.66 87.01 148019004.66
Commercial acceptance
bills 22107157.52 12.99 450986.02 2.04 21656171.50
Total 170126162.18 100.00 450986.02 0.27 169675176.16
Provision for expected credit losses on commercial acceptance bills based on aging in the
portfolio
Ending balance
Name
Balance Provision for bad debts Provisionpercentage (%)
Within 1 year 26887801.28 548511.17 2.04
Total 26887801.28 548511.17 2.04
(3) Provision for bad debts of notes receivable made recovered or reversed during
the year
Change in the current year
Category Beginning Recovered orbalance Ending balanceProvision Written-off Others
Reversed
Commercial
acceptance bills 450986.02 822371.39 724846.24 548511.17
Total 450986.02 822371.39 724846.24 548511.17
(4) Notes receivable pledged at year-end
No notes receivable were pledged at the end of the year.
(5) Notes receivable endorsed or discounted but not yet matured as at the balance
sheet date at year-end
Item Amount derecognized at the end of Amount not derecognized at thethe year end of the year
Bank acceptance bills 873146000.21
Commercial acceptance bills 25720556.07
219Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount derecognized at the end of Amount not derecognized at thethe year end of the year
Total 873146000.21 25720556.07
(6) Notes receivable actually written off during the year
No notes receivable were actually written off in the current year.
4. Accounts receivable
(1) Accounts receivable aged analysis
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 872534288.66 985155712.60
1-2 years 33230346.13 467086582.23
2-3 years 416551776.82 112149892.90
3-4 years 92779205.23 117756261.01
4-5 years 114178358.99 255011480.57
Over 5 years 1445571151.66 1217501924.55
Total 2974845127.49 3154661853.86
(2) Accounts receivable classified and listed by provision methods for bad debts
Ending balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision for bad
debts by single item 1573873380.74 52.91 1537243420.22 97.67 36629960.52
Provision for bad
debts by portfolio
Of which: Aging
portfolio 1400971746.75 47.09 350672695.12 25.03 1050299051.63
Subtotal of portfolio 1400971746.75 47.09 350672695.12 25.03 1050299051.63
Total 2974845127.49 100.00 1887916115.34 63.46 1086929012.15
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Amount Percentage
Provision Book value
(%) Amount percentage(%)
Provision for bad
debts by single item 1612578129.18 51.12 1530953048.13 94.94 81625081.05
220Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision for bad
debts by portfolio
Of which: Aging
portfolio 1542083724.68 48.88 308486148.81 20.00 1233597575.87
Subtotal of portfolio 1542083724.68 48.88 308486148.81 20.00 1233597575.87
Total 3154661853.86 100.00 1839439196.94 58.31 1315222656.92
1) Provision for bad debts of accounts receivable made by individual item
Beginning balance Ending balance
Name Provision for Provision for Provision ReasonsBalance bad debts Balance bad debts percentage for the(%) provision
CEFC
Shanghai Not
International expected to298855950.30 298855950.30 298280558.37 298280558.37 100.00
Group be
Limited recoverable
Hongtu Not
Sanpower expected to
Technology 200000000.00 200000000.00 200000000.00 200000000.00 100.00 be
Co. Ltd. recoverable
Not
Loxia Group expected to
Co. Ltd. 159702611.45 159702611.45 159702611.45 159702611.45 100.00 be
recoverable
Shenzhen Not
Yaode expected to
Technology 147734652.40 147734652.40 144454581.31 144454581.31 100.00 be
Co. Ltd. recoverable
Guang'an
Ouqishi Expected to
Electronic 113139940.86 110965942.46 113139940.86 110965942.46 98.08 be difficult to
Technology recover
Co. Ltd.Zhongfu
Tiangong Not
Construction expected to71289096.65 71289096.65 71289096.65 71289096.65 100.00
Group Co. be
Ltd. recoverable
CCCC First
Harbor Not
Engineering expected to65221300.00 65221300.00 65221300.00 65221300.00 100.00
Company be
Ltd. recoverable
221Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance Ending balance
Name
Balance Provision for Provision for
Provision Reasons
bad debts Balance bad debts percentage for the(%) provision
Gome
Custom Not
(Tianjin) expected to
Home 57021975.73 57021975.73 57021975.73 57021975.73 100.00 be
Appliance recoverable
Co. Ltd.Xingda Not
Hongye expected to
(Hong Kong) 51902301.95 51902301.95 51902301.95 51902301.95 100.00 be
Limited recoverable
Dongguan
High Energy Not
Polymer expected to50699037.70 32893535.66 50699037.70 32893535.66 64.88
Materials be fully
Co. Ltd. recoverable
Expected to
Others 397011262.14 335365681.53 362161976.72 345511516.64 95.40 be difficult to
recover
Total 1612578129.18 1530953048.13 1573873380.74 1537243420.22 — —
2) Provision set aside for bad debts of accounts receivable by portfolio
Ending balance
Aging
Balance Provision for bad debts Provisionpercentage (%)
Within 1 year 865171957.96 17649507.97 2.04
1-2 years 18535526.42 1857259.78 10.02
2-3 years 226009181.96 51281483.38 22.69
3-4 years 32376527.37 21005890.95 64.88
4-5 years 88929117.03 88929117.03 100.00
Over 5 years 169949436.01 169949436.01 100.00
Total 1400971746.75 350672695.12 25.03
(3) Provision for bad debts of accounts receivable set aside recovered or reversed
in the current year
Change in the current year
Category Beginning balance
Provision Recovered or reversed
Provision for bad debts of accounts
receivable 1839439196.94 84972783.90 31101240.08
Total 1839439196.94 84972783.90 31101240.08
(Continued)
222Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of accounts
receivable -5394625.42 1887916115.34
Total -5394625.42 1887916115.34
Note: Among other changes for the year there was a decrease of RMB 4047995.42 due
to foreign exchange rate fluctuations and a decrease of RMB 1346630.00 due to loss of
control.Among them the provision for bad debts recovered or reversed in the current year with
significant amounts are:
Basis and rationality
Unit Recovered or Reason for reversal Recovery
of determining the
reversed amount method proportion of originalprovision for bad
debts
Received insurance
compensation from China
Export & Credit Insurance Insurance CDM has been written
CDM MIAMI INC 12048547.66 Corporation and compensation off so the full amounttransferred 85% of the transfer of of the unpaid amount
creditor's rights and creditor's rights has been provided for
interests to the insurance
company
Total 12048547.66 — — —
(4) Accounts receivable actually written off in the current year
No accounts receivable were actually written off in the current year.
(5) Top five accounts receivable and contract assets in the ending balance
categorized by debtors
The total amount of accounts receivable with top five Ending balance categorized by
debtors in the current year was RMB 1152138381.74 accounting for 38.73% of the total
Ending balance of accounts receivable. The total Ending balance of provision for bad
debts correspondingly set aside was RMB 848821590.70.
5. Contract assets
(1) Details of contract assets
Ending balance Beginning balance
Item
Balance Provision forbad debts Book value Balance
Provision for
bad debts Book value
Warranty 2194100.57 301794.27 1892306.30 2867437.14 236928.54 2630508.60
Total 2194100.57 301794.27 1892306.30 2867437.14 236928.54 2630508.60
(2) Classified presentation of contract assets by provisioning methods of bad debts
223Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Balance Provision for bad debts
Category
Percenta Provision Book valueAmount ge (%) Amount percentage(%)
Provision for bad debts by single
item
Provision for bad debts by
portfolio
Of which: Aging portfolio 2194100.57 100.00 301794.27 13.75 1892306.30
Subtotal of portfolio 2194100.57 100.00 301794.27 13.75 1892306.30
Total 2194100.57 100.00 301794.27 13.75 1892306.30
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Amount Percentage(%) Amount percentage(%)
Provision for bad debts by
single item
Provision for bad debts by
portfolio
Of which: Aging portfolio 2867437.14 100.00 236928.54 8.26 2630508.60
Subtotal of portfolio 2867437.14 100.00 236928.54 8.26 2630508.60
Total 2867437.14 100.00 236928.54 8.26 2630508.60
(3) Provision set aside for bad debts of contract assets by portfolio
Ending balance
Name
Balance Provision for bad Provision percentagedebts (%)
Within 1 year 561956.93 11463.92 2.04
1-2 years 631436.80 63269.97 10.02
2-3 years 1000706.84 227060.38 22.69
Total 2194100.57 301794.27 13.75
(Continued)
Beginning balance
Name
Balance Provision for bad Provision percentagedebts (%)
Within 1 year 631436.80 12881.31 2.04
1-2 years 2236000.34 224047.23 10.02
224Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Name
Balance Provision for bad Provision percentagedebts (%)
Total 2867437.14 236928.54 8.26
(4) Provision for bad debts of contract assets
Change in the current year
Charge-
Beginning End of the
Item The current
Recovered
or reversed off/Write- Others year ReasonBalance year
in the off in the Balance
Provision current year current
Change
year
Warranty 236928.54 64865.73 301794.27
Total 236928.54 64865.73 301794.27
(5) Contract assets actually written off in the current year
There were no contract assets actually written off in the current year.
6. Receivables financing
Item Ending balance Beginning balance
Notes receivable 155957556.43 63943324.53
Total 155957556.43 63943324.53
7. Other receivables
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 942267792.91 989245120.86
Total 942267792.91 989245120.86
7.1 Other receivables
(1) Classified by account nature
Nature of funds Ending book balance Beginning book balance
Deposits guarantees and down payments 333603706.26 344822666.77
Amounts due from minority shareholders and
related parties arising from business 173714171.72 182764171.72
combinations not under common control
Energy-saving subsidies receivable 152399342.00 152399342.00
Amounts due from related parties 3691383944.24 2253362393.92
Others 1022177199.12 1035865828.21
225Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Nature of funds Ending book balance Beginning book balance
Total 5373278363.34 3969214402.62
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 1467251543.63 394812584.95
1-2 years 348839519.04 206901565.92
2-3 years 204016070.83 110433169.22
3-4 years 110032898.45 683019991.91
4-5 years 670561586.84 771766144.27
Over 5 years 2572576744.55 1802280946.35
Total 5373278363.34 3969214402.62
(3) Classified presentation of other receivables by provisioning methods of bad
debts
Ending balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision for bad debts
by single item 4975343588.38 92.59 4221263474.95 84.84 754080113.43
Provision for bad debts
by portfolio
Of which: Aging
portfolio 174594933.66 3.25 155935224.70 89.31 18659708.96
Low-risk portfolio 223339841.30 4.16 53811870.78 24.09 169527970.52
Subtotal of portfolio 397934774.96 7.41 209747095.48 52.71 188187679.48
Total 5373278363.34 100.00 4431010570.43 82.46 942267792.91
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Provision Book value
Amount Percentage(%) Amount percentage(%)
Provision for bad debts
by single item 3524335366.36 88.79 2773496740.31 78.70 750838626.05
Provision for bad debts
by portfolio
Of which: Aging portfolio 204938477.00 5.16 168912851.74 82.42 36025625.26
226Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
Low-risk portfolio 239940559.26 6.05 37559689.71 15.65 202380869.55
Subtotal of portfolio 444879036.26 11.21 206472541.45 46.41 238406494.81
Total 3969214402.62 100.00 2979969281.76 75.08 989245120.86
1) Provision set aside for bad debts of other receivables by portfolio
Ending balance
Aging
Balance Provision for bad debts Provisionpercentage (%)
Within 1 year 30987870.02 455455.39 1.47
1-2 years 108683542.17 3436732.32 3.16
2-3 years 4943343.38 882664.64 17.86
3-4 years 66847734.22 20375026.96 30.48
4-5 years 5156520.25 3281451.25 63.64
Over 5 years 181315764.92 181315764.92 100.00
Total 397934774.96 209747095.48 52.71
2) Provision set aside for bad debts of other receivables by the general expected
credit loss model
Phase I Phase II Phase III
Expected credit
Provision for bad debts Expected credit loss throughout
Expected credit loss
Total
loss for the next the duration throughout the
12 months (without credit duration (with credit
loss) impairment)
Balance as of January 1
20251712968.68204759572.772773496740.312979969281.76
Balance as of January 1
2025 in the current year
-- Transfer to Stage II -1112942.99 1112942.99
-- Transfer to Stage III -16067075.02 16067075.02
-- Reversal to Stage II
-- Reversal to Stage I
Provision in the current year 455455.39 39231080.91 1442626944.96 1482313481.26
Reversal in the current year 600025.69 14470376.18 612914.96 15683316.83
227Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Phase I Phase II Phase III
Expected credit
Provision for bad debts Expected credit loss throughout
Expected credit loss
Total
loss for the next the duration throughout the
12 months (without credit duration (with credit
loss) impairment)
Charge-off in the current
year
Write-off in the current year
Other changes -5274505.38 -10314370.38 -15588875.76
Balance as of December 31
2025455455.39209291640.094221263474.954431010570.43
Remarks: 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 one
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 one year the loss provision is measured based on the
expected credit losses for the entire duration.The third stage is credit impairment after initial recognition. For other receivables with
credit impairment that have occurred the loss provision is measured according to the
credit losses that have occurred throughout the duration.
(4) Provision for bad debts of other receivables set aside recovered or reversed in
the current year
Change in the current year
Category Beginning balance
Provision Recovered or reversed
Provision for bad debts of 1482313481.26 15683316.83
other receivables 2979969281.76
Total 2979969281.76 1482313481.26 15683316.83
(Continued)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of
other receivables -15588875.76 4431010570.43
Total -15588875.76 4431010570.43
Remarks: The amount of other changes during the year includes a decrease of RMB
15588875.76 resulting from foreign exchange rate movements.
228Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(5) Other receivables actually written off in the current year
No other receivables were actually written off in the current year.
(6) Other receivables with top five year-end balances categorized by debtors
The total amount of other receivables with top five ending balance categorized by debtors
in the current year was RMB 3395479797.88 accounting for 63.19% of the total ending
balance of other receivables. The total ending balance of provision for bad debts
correspondingly set aside was RMB 2975828359.15.
8. Prepayments
(1) Age of prepayments
Ending balance Beginning balance
Item
Amount Percentage (%) Amount Percentage (%)
Within 1 year 43005753.50 44.75 101180248.89 81.11
1-2 years 52405587.00 54.53 2820065.05 2.26
2-3 years 122638.58 0.13 565293.20 0.45
Over 3 years 571760.52 0.59 20182805.45 16.18
Total 96105739.60 100.00 124748412.59 100.00
Remarks: The amount of prepayments of the Group aged over one year at the end of the
period was RMB 53099986.10 accounting for 55.25% of the total ending balance of
prepayments which are mainly unsettled payments.
(2) Top five prepayments in the ending balance categorized by payees
The total amount of the top five prepayments in the year-end balance categorized by
payees in the current year was RMB 83210809.70 accounting for 86.58% of the total
year-end balance of prepayments.
9. Inventories
(1) Inventories Classification
Ending balance
Item
Balance Provision for impairment Book value
Raw materials 535044975.99 161547556.59 373497419.40
Semi-finished products 110173191.36 61564204.04 48608987.32
Finished goods 1946864898.54 893886141.81 1052978756.73
Commissioned
processing materials 1248253.88 1248253.88
Development costs 30197755.10 13632674.11 16565080.99
Development products 207777173.26 38429041.00 169348132.26
Total 2831306248.13 1169059617.55 1662246630.58
229Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(Continued)
Beginning balance
Item
Balance Provision for impairment Book value
Raw materials 665144044.54 108024878.82 557119165.72
Semi-finished products 110372128.69 42305974.41 68066154.28
Finished goods 2189720769.60 491936445.95 1697784323.65
Commissioned
processing materials 2235269.96 262121.44 1973148.52
Development costs 26677475.24 26677475.24
Development products 346650809.82 3622890.30 343027919.52
Total 3340800497.85 646152310.92 2694648186.93
(2) Provision for inventory depreciation
Increase in the current year
Item Beginning balance
Provision or reversal Others
Raw materials 108024878.82 94066987.03
Semi-finished products 42305974.41 24271959.05
Finished goods 491936445.95 579056873.57
Commissioned
processing materials 262121.44 -256822.62
Development costs 13632674.11
Development products 3622890.30 38429041.00
Total 646152310.92 749200712.14
(Continued)
Decrease in the current year
Item Ending balance
Write-off Others
Raw materials 39318412.96 1225896.30 161547556.59
Semi-finished products 5005089.41 8640.01 61564204.04
Finished goods 167023674.38 10083503.33 893886141.81
Commissioned
processing materials 5298.82
Development costs 13632674.11
Development products 3622890.30 38429041.00
Total 214970067.05 11323338.46 1169059617.55
Note: Other decreases in the current year were caused by changes in exchange rates.Specific basis for determining the net realizable value and reasons for reversal or write-off
230Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
of provision for inventory depreciation and impairment provision for contract performance
costs during the current year:
Item Specific basis for provision for inventory Reasons for write-off of provision fordepreciation inventory impairment in the current year
Raw materials The net realizable value was lower than the
book value Sold or used in the current year
Semi-finished products The net realizable value was lower than the
book value Sold or used in the current year
Finished goods The net realizable value was lower than the
book value Sold in the current year
Development products The net realizable value was lower than the
book value Sold in the current year
10. Other current assets
Item Ending balance Beginning balance
Prepaid taxes deductible input tax and export tax refund
receivable 619195913.75 525546353.28
Principal and interest of entrusted loans to associated
enterprises 235601218.08 1590781482.74
Deferred expenses 14313545.63 18606081.90
Cost of goods returned receivable 10287129.13 14460748.65
Others 434578.55 19005345.90
Less: Impairment provision for other current assets 118264443.38
Total 761567941.76 2168400012.47
231Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
11. Investments in other equity instruments
Changes in the current year Reason for
Accumulated Accumulated designation to
Dividend gains included losses included measure at fair
Losses
Beginning Gains included Ending income in other in other value withItem balance Increase in Decrease in in other
included in
balance recognized comprehensiv comprehensive changes
investment investment comprehensive other Others in the e income at income at the included in
income comprehensive current year the end of the end of the otherincome current year current year comprehensive
income
Beijing Huyu
Entertainment 5901121. Long-term
Digital 5901121.80 6000000.00 holding based on
Technology 80 strategic purpose
Co. Ltd.Feihong Long-term
Electronics Co. 1300000.00 holding based on
Ltd. strategic purpose
Shenzhen
Association of Long-term
Enterprises with 100000.00 holding based on
Foreign strategic purpose
Investment
Shenzhen
Chuangce Long-term
Investment 485000.00 holding based on
Development strategic purpose
Co. Ltd.Shenzhen
Tianyilian Long-term
Science & 4800000.00 holding based on
Technology strategic purpose
Co. Ltd.
232Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year Reason for
Accumulated Accumulated designation to
Dividend gains included losses included measure at fair
Beginning Gains included
Losses income in other in other value with
Item Increase in Decrease in in other included in
Ending
balance balance recognized comprehensiv comprehensive changes
investment investment comprehensive other Others in the e income at income at the included in
income comprehensive current year the end of the end of the otherincome current year current year comprehensive
income
Shanlian
Information 1860809. 186080 Long-term
Technology 3139190.80 holding based on
Engineering 20 9.20 strategic purpose
Center Co. Ltd.Shenzhen
Zhongcailian 953000.0 953000. Long-term
Technology 200000.00 holding based on0 00
Co. Ltd. strategic purpose
Shanghai
National
Engineering 2400000. 240000 Long-term
Research holding based on00 0.00
Center of Digital strategic purpose
TV Co. Ltd.Guangdong
Bohua Ultra HD 5000001. 500000 Long-term
Innovation holding based on00 1.00
Center Co. Ltd. strategic purpose
16114932.102138
Total 5901121.80 16024190.80 —
0010.20
233Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
12. Long-term equity investments
(1) Long-term equity investments
Changes in the current year
Beginning Provision for
Investee balance
impairment
Gains/losses on
(Book value) Beginning Adjustments tobalance Increase in Decrease in investment other
investment investment recognized underthe equity comprehensive
method income
Associates:
Kangkong Venture Capital (Shenzhen) Co. Ltd. 5128914.49 51878.52
Nanjing Zhihuiguang Information Technology
Research Institute Co. Ltd. 2004044.10 13842.09
Feidi Technology (Shenzhen) Co. Ltd. 15120554.12 7208123.71
Shenzhen Kangyue Industrial Co. Ltd. 24977328.88
Kangkai Technology Service (Chengdu) Co.Ltd. 87650.74 -6537.65
Puchuang Jiakang Technology Co. Ltd. 3560497.42 2736994.29
Shenzhen Jielunte Technology Co. Ltd. 89059544.64 -8894353.34
Orient Excellent (Zhuhai) Asset Management
Co. Ltd. 8608429.66 7754.30
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Investment Fund (Limited Partnership) 334610872.32 -169719987.28
Tongxiang Wuzhen Kunyu Venture Capital Co.Ltd. 3527959.96 2057.10
Shenzhen RF-Link Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co. Ltd. 365522727.56 118401234.06 -9110307.96 57037.58
234Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Beginning Provision for
Investee balance
impairment
Gains/losses on
(Book value) Beginning investment Adjustments tobalance Increase in Decrease in recognized under otherinvestment investment the equity comprehensive
method income
Kunshan Kangsheng Investment Development
Co. Ltd. 78658851.02 -5388016.54
Shaanxi Silk Road Yunqi Intelligent Technology
Co. Ltd. 3467934.60 -3315263.80
Shenzhen Kanghongxing Intelligent Technology
Co. Ltd. 12660222.73
Shenzhen Zhongkang Beidou Technology Co.Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Group Co. Ltd. 545842155.57 239447355.00
Chuzhou Konka Technology Industry
Development Co. Ltd. 31309842.61 -7016776.39
Chuzhou Kangjin Health Industry Development
Co. Ltd. 195156840.19 -32283182.56
Nantong Konka Technology Industrial Park
Operation Management Co. Ltd. 106686557.81 -37886034.26
Chuzhou Kangxin Health Industry Development
Co. Ltd. 178678863.47 -1841318.73
Dongguan Guankang Yuhong Investment Co.Ltd. 482685139.04 -25665481.43
Shenzhen Morsemi Semiconductor Technology
Co. Ltd.Econ Technology Co. Ltd. 847418693.43 347737910.02 -5557305.38
Dongguan Kangjia New Materials Technology
Co. Ltd. 6231919.24 -1323182.99
Chongqing Ypfun Technology Co. Ltd. 2148608242.28 91766541.43 200000000.00
235Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Beginning Provision for
Investee balance
impairment
Gains/losses on
(Book value) Beginning Adjustments tobalance Increase in Decrease in investment
investment investment recognized under
other
the equity comprehensive
method income
Yantai Kangyun Industrial Development Co. Ltd. 60639840.23 -60639840.23
E3 (Hainan) Technology Co. Ltd. 11378307.99 14000000.00 14803698.26
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 5896518.07 -3447912.19
Shenzhen Konka E-display Intelligent
Technology Co. Ltd. 93484210.07 3564368.70 -136519.75
Chongqing Yuanlv Benpao Real Estate Co. Ltd. 25740000.00
Shenzhen Kangpeng Digital Technology Co.Ltd. 1310766.92 -330466.61
Yantai Kangtang Construction Development Co.Ltd. 1268280.88 -144860.18
Dongguan Kangzhihui Electronics Co. Ltd. 18648646.28 -5142877.00
Beijing Kangjia Jingyuan Technology Co. Ltd. 687957.04 -66429.68
Chongqing Liangshan Enterprise Management
Co. Ltd. 229695.25 80612.23
Shenzhen Kangxi Technology Innovation
Development Co. Ltd. 1041325.74 9567.70
Shandong Kangfei Intelligent Electrical
Appliances Co. Ltd. 245911.63
Guangdong Kangyuan Semiconductor Co. Ltd. 7360542.07 -1359249.83
Chongqing Kangyiqing Technology Co. Ltd. 635826.26 -490401.87
Zhejiang Kangying Semiconductor Technology
Co. Ltd. 16838151.45 13432626.55 1855858.38
236Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Beginning Provision forimpairment
Investee balance
Beginning Gains/losses on(Book value) balance Increase in Decrease in investment
Adjustments to
investment investment recognized under
other
the equity comprehensive
method income
Zhisheng Hong Kong Co. Ltd. 1594091.44 7878.01
Chongqing Kangjian Photoelectric Technology
Co. Ltd. 3277417.20 -3277417.20
Anhui Kangta Supply Chain Management Co.Ltd. 16781006.43 -232448.87
Wuhan Kangtang Information Technology Co.Ltd. 15853661.78 -14876432.16
Sichuan Chengrui Real Estate Co. Ltd. 23989768.27 -1632580.79
Jiakang Industrial Development (Wuhan) Co.Ltd. 38684412.72 -817183.89
Hefei Kangxinwei Storage Technology Co. Ltd. 90223618.55 -6163287.96
Xi'an Kangan Intelligent Storage Technology
Co. Ltd. 5766552.98 6000000.00 233447.02
Sichuan Hongxinchen Real Estate Development
Co. Ltd. 53934595.60
Konka Huanjia Environmental Protection
Technology Co. Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co.Ltd. 1000000.00 2643.86
Total 5921501427.49 1027544645.45 201000000.00 260251053.26 -379277342.69 1776376.21
237Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(Continued)
Changes in the current year
Ending balance Provision for
Investee impairment
Cash dividends (Book value) Ending balance
Changes in other or profits Provision for
equity declared to be impairment Others
distributed
Associates:
Kangkong Venture Capital (Shenzhen) Co. Ltd. 5180793.01
Nanjing Zhihuiguang Information Technology
Research Institute Co. Ltd. 2017886.19
Feidi Technology (Shenzhen) Co. Ltd. 913190.37 21415487.46
Shenzhen Kangyue Industrial Co. Ltd. 24977328.88
Kangkai Technology Service (Chengdu) Co.Ltd. 81113.09
Puchuang Jiakang Technology Co. Ltd. 6297491.71
Shenzhen Jielunte Technology Co. Ltd. 80165191.30
Orient Excellent (Zhuhai) Asset Management
Co. Ltd. 8616183.96
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Investment Fund (Limited Partnership) 164890885.04
Tongxiang Wuzhen Kunyu Venture Capital Co.Ltd. 3530017.06
Shenzhen RF-Link Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co. Ltd. 329481474.22 26987982.96 447882708.28
Kunshan Kangsheng Investment Development
Co. Ltd. 73270834.48
Shaanxi Silk Road Yunqi Intelligent Technology
Co. Ltd. 152670.80
238Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Provision for
Investee Changes in the current year impairment
(Book value) Ending balance
Shenzhen Kanghongxing Intelligent Technology
Co. Ltd. 12660222.73
Shenzhen Zhongkang Beidou Technology Co.Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Group Co. Ltd. 8618395.70 -297776404.87
Chuzhou Konka Technology Industry
Development Co. Ltd. 24293066.22 24293066.22
Chuzhou Kangjin Health Industry Development
Co. Ltd. 162873657.63
Nantong Konka Technology Industrial Park
Operation Management Co. Ltd. 68800523.55 68800523.55
Chuzhou Kangxin Health Industry Development
Co. Ltd. 176837544.74 176837544.74
Dongguan Guankang Yuhong Investment Co.Ltd. 457019657.61 457019657.61
Shenzhen Morsemi Semiconductor Technology
Co. Ltd.Econ Technology Co. Ltd. 123382687.03 718478701.02 471120597.05
Dongguan Kangjia New Materials Technology
Co. Ltd. 4908736.25 4908736.25
Chongqing Ypfun Technology Co. Ltd. 301193.49 1876737405.93 2174869.26 474346899.10 1968503947.36
Yantai Kangyun Industrial Development Co.Ltd.E3 (Hainan) Technology Co. Ltd. 3425390.27 14000000.00
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 2448605.88
Shenzhen Konka E-display Intelligent
Technology Co. Ltd. 309651.05 97221710.07
Chongqing Yuanlv Benpao Real Estate Co.Ltd. 25740000.00
239Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Provision for
Investee Changes in the current year impairment
(Book value) Ending balance
Shenzhen Kangpeng Digital Technology Co.Ltd. 980300.31
Yantai Kangtang Construction Development
Co. Ltd. 1123420.70
Dongguan Kangzhihui Electronics Co. Ltd. -21516.38 13484252.90
Beijing Kangjia Jingyuan Technology Co. Ltd. 621527.36
Chongqing Liangshan Enterprise Management
Co. Ltd. 310307.48
Shenzhen Kangxi Technology Innovation
Development Co. Ltd. 1050893.44
Shandong Kangfei Intelligent Electrical
Appliances Co. Ltd. 245911.63
Guangdong Kangyuan Semiconductor Co. Ltd. 6001292.24
Chongqing Kangyiqing Technology Co. Ltd. 145424.39
Zhejiang Kangying Semiconductor Technology
Co. Ltd. 32126636.38
Zhisheng Hong Kong Co. Ltd. 1601969.45
Chongqing Kangjian Photoelectric Technology
Co. Ltd.Anhui Kangta Supply Chain Management Co.Ltd. 16548557.56
Wuhan Kangtang Information Technology Co.Ltd. 977229.62
Sichuan Chengrui Real Estate Co. Ltd. 22357187.48 22357187.48
Jiakang Industrial Development (Wuhan) Co.Ltd. 37867228.83 37867228.83
Hefei Kangxinwei Storage Technology Co. Ltd. 17959051.24 102019381.83
Xi'an Kangan Intelligent Storage Technology
Co. Ltd.Sichuan Hongxinchen Real Estate Development
Co. Ltd. 53934595.60 53934595.60
240Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Provision for
Investee Changes in the current year impairment
(Book value) Ending balance
Konka Huanjia Environmental Protection
Technology Co. Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co.Ltd. 68208.71 1070852.57 -
Total 18260244.73 9531586.07 3175620107.46 -291819801.96 2026038156.99 4203164752.91
Note: Other changes in the current year were caused by the conversion of long-term equity investments accounted for by the equity
method in Wuhan Tianyuan Group Co. Ltd. to financial assets the deregistration of E3 (Hainan) Technology Co. Ltd. and unrealized
profits from downstream transactions.
241Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Impairment test for long-term equity investments
1) The recoverable amount is determined at the net amount of the fair value minus the
disposal expenses
Item Book value Recoverable amount Impairment Amount
Yifang 2351084，305.03 474346899.10 1876737405.93
Guan Kang Yuhong 457019657.61 457019，657.61
Chuzhou Kangxin 176837544.74 176837544.74
Total 2984941507.38 474346899.10 2510594608.28
(Continued)
Item Determination method of fair Key Basis for determining keyvalue and disposal costs parameters parameters
Fair value is recognized by the
income approach; disposal Disposal expenses: in accordance
Yifang expenses shall be charged in Fair value
with the property rights transfer
accordance with the business fee disposal costs fee standards of Shanghai United
standards of the property rights Assets and Equity Exchange Co.exchange. Ltd.The fair value of the asset is
Guan Kang Yuhong Asset-based approach Fair value estimated on the basis of the best
available information
The fair value of the asset is
Chuzhou Kangxin Asset-based approach Fair value estimated on the basis of the best
available information
Total — — —
2) The recoverable amount is determined based on the present value of the estimated
future cash flows
Item Book value Recoverable amount Impairment Amount
Kaikai Shijie 356469457.18 26987982.96 329481474.22
Yikang Technology Co. Ltd. 841861388.05 718478701.02 123382687.03
Total 1198330845.23 745466683.98 452864161.25
(Continued)
Basis for
Item Years of Forecast Key parameters for Key Parameters in Determination of KeyPeriod the forecast period Stabilization Phase Parameters in the
Stabilization Period
The above key
After-tax discount rate After-tax discount rate indicators are
2026 to 2030 7.44%; calculated 7.44%; calculated determined based on
Kaikai Shijie (followed by a based on projected based on projected historical experience
stabilization period) revenue costs revenue costs and forecasts of market
expenses etc. expenses etc. development
242Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Basis for
Item Years of Forecast Key parameters for Key Parameters in Determination of KeyPeriod the forecast period Stabilization Phase Parameters in the
Stabilization Period
The growth rate for the The revenue growth
forecast period is 0% The stable period rate in the stabilization
Yikang 2026 to 2043 the profit margin of the growth rate is 0% the period is 0.00% and
Technology (followed by a construction business profit margin is 15% the profit margin and
Co. Ltd. stabilization period) in the forecast period is and the pre-tax discount rate are
15% and the return on discount rate is 9.40% consistent with the last
capital is 6.5% year of the forecastperiod
Total — — — —
13. Other non-current financial assets
Item Ending balance Beginning balance
Kunshan Xinjia Emerging Industry Equity Investment Fund
Partnership (Limited Partnership) 119414203.99 230264035.04
China Asset Management - Jiayi Overseas Designated Plan 200732067.00 200732067.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity
Investment Partnership (Limited Partnership) 178532220.44 197621072.79
Yibin OCT Sanjiang Properties Co. Ltd. 175054364.03 174599313.55
Chongqing Kangxin Equity Investment Fund Partnership (Limited
Partnership) 145591716.60 144028481.56
Yancheng Kangyan Information Industry Investment Partnership
(Limited Partnership) 135763664.30 139166271.83
Daye Trust - Huilibao No. 19 100000000.00
CCB Trust - Caidie No. 6 Property Rights Trust Plan 300000.00 66080293.70
Yibin Kanghui Electronic Information Industry Equity Investment
Partnership (Limited Partnership) 58967986.53 59264288.31
Chuzhou Jiachen Information Technology Consulting Service
Partnership (Limited Partnership) 58296141.16
Tianjin Property No. 8 Enterprise Management Partnership
(Limited Partnership) 28540777.26
Tianjin Huacheng Property Development Co. Ltd. 1000000.00 1000000.00
Shenzhen Kanghuijia Technology Co. Ltd. 1033.45 1033.45
Subtotal of equity investments 1015357256.34 1399593775.65
Shenzhen Gaohong Enterprise Consulting Management
Partnership (Limited Partnership) 120874956.69 120874956.69
Nanjing Kangfeng Dejia Asset Management Partnership (Limited
Partnership) 100000000.00
Shenzhen Zitang No. 1 Enterprise Consulting Management
Partnership (Limited Partnership) 99000000.00
Shenzhen Beihu Technology Partnership (Limited Partnership) 15000000.00 59735232.88
Xi'an Bihuijia Enterprise Management Consulting Partnership
(Limited Partnership) 7520520.00 14685194.12
243Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Ending balance Beginning balance
Shanxi Kangmengrong Enterprise Management Consulting
Partnership (Limited Partnership) 3028480.00 8520728.55
Subtotal of debt investments 146423956.69 402816112.24
Total 1161781213.03 1802409887.89
14. Investment properties
(1) Investment properties measured at the cost mode
Item Houses and buildings Land use right Total
I. Original Book Value
1. Beginning Balance 1715988662.48 172115175.84 1888103838.32
2. Increase in the Current Year 12236594.06 249409.16 12486003.22
(1) Purchase 1225721.11 249409.16 1475130.27
(2) Transfer-in of inventories\fixed
assets\construction in 11010872.95 11010872.95
progress\intangible assets
3. Decrease in the Current Year 40928563.62 75154029.62 116082593.24
(1) Disposal 39320464.65 39320464.65
(2) Other transfer-out 1608098.97 75154029.62 76762128.59
4. Ending Balance 1687296692.92 97210555.38 1784507248.30
II. Accumulated depreciation and
accumulated amortization
1. Beginning Balance 212582498.12 24678100.69 237260598.81
2. Increase in the Current Year 53859884.41 2861554.41 56721438.82
(1) Provision or amortization 53859884.41 2861554.41 56721438.82
3. Decrease in the Current Year 18325185.92 844000.32 19169186.24
(1) Disposal 4399911.15 4399911.15
(2) Other transfer-out 13925274.77 844000.32 14769275.09
4. Ending Balance 248117196.61 26695654.78 274812851.39
III. Provision for Impairment
1. Beginning Balance
2. Increase in the Current Year 602125392.90 41517528.88 643642921.78
(1) Provision 602125392.90 41517528.88 643642921.78
3. Decrease in the Current Year
(1) Disposal
(2) Other transfer-out
4. Ending Balance 602125392.90 41517528.88 643642921.78
244Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Houses and buildings Land use right Total
IV. Book value
1. Ending book value 837054103.41 28997371.72 866051475.13
2. Book value at the beginning of the
year 1503406164.36 147437075.15 1650843239.51
Note: The other assets transferred in the decreases amount from investment properties in
the current period was reclassified according to the purpose of holding and transferred into
fixed assets.
(2) Impairment test of investment properties measured at cost
In 2025 the Group conducted impairment tests on the investment properties of its
headquarters Xi'an Kanghong Yibin Konka Industrial Park Suining Konka Industrial Park
etc.. The recoverable amount was determined as the higher of fair value less costs of
disposal and the present value of estimated future cash flows. A total asset impairment
loss of RMB 643642921.78 was recognized.
1) The recoverable amount is determined at the net amount of the fair value minus the
disposal expenses
Item Book value Recoverable amount Impairment Amount
Xi'an Kanghong 100206506.24 88833134.00 11373372.24
Total 100206506.24 88833134.00 11373372.24
(Continued)
Determination method of Basis for
Item fair value and disposal Key parameters determining key
costs parameters
Comparable unit price of
investment property to be
appraised = Price of
comparable instance after
establishing comparison
benchmark × Trading Comparable instance price trading The comparable
Xi'an Kanghong correction coefficient × correction coefficient location instance price is
Trading time adjustment adjustment coefficient etc. defined through
coefficient × Location inquiry records.adjustment coefficient ×
Physical condition
adjustment coefficient ×
Equity adjustment coefficient
Total — — —
2) The recoverable amount is determined based on the present value of the estimated
future cash flows
Item Book value Recoverable amount Impairment Amount
Guangming Technology 540352724.57 320593149.91 219759574.66
245Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Book value Recoverable amount Impairment Amount
Center
Yibin Konka Industrial Park 105369207.16 70346651.37 35022555.79
Suining Konka Industrial Park 238797042.25 77853042.25 160944000.00
Total 884518973.98 468792843.53 415726130.45
(Continued)
Years of Forecast Key parameters Key Parameters
Basis for
Item for the forecast in Stabilization Determination of KeyPeriod period Phase Parameters in theStabilization Period
Guangming 2026 to 2043 (followed Rent increase Rent increase Based on forecasts of
Technology Center by a stabilization period) (decrease) rate of (decrease) rate of2%; vacancy rate. 2%; vacancy rate. market trends.The real estate value is
determined based on
the market price of
Annual total Annual total similar real estate
income from real income from real transactions on the
Yibin Konka Industrial 2026 to 2068 (followed estate; annual estate; annual valuation base date the
Park by a stabilization period) total expenses; total expenses; location and physical
discount rate; discount rate; condition of the real
useful life. useful life. estate to be valued and
the development trend
of the real estate market
in the area.Refer to the leasing
Suining Konka 2026 to 2035 (followed Rent increase Rent increase market conditions and
Industrial Park by a stabilization period) (decrease) rate; (decrease) rate; historical operationalvacancy rate. vacancy rate. data of the project in the
region.Total — — — —
(3) Investment properties measured by fair value
The Group had no investment properties measured at fair value.
(4) Investment properties converted and measured at fair value in the current year
There was no conversion of investment property measured at fair value in the current year.
246Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(5) Investment properties for which property right certificates have not yet been
issued
Item Book value Reason for incompleteproperty rights certificate
Suining Konka Electronic Product Standard The project has not yet
Factory Project 64185293.61 completed the completionregistration
Houses and buildings of Xi'an Kanghong 88833134.00 In progress
Yantai Kangjin's properties and buildings 19180060.44 In progress
(6) Investment properties with restricted ownership or use right
Item Book value Reason for restriction
Guangming Technology Center 320593149.91 Mortgaged for loan
Houses and buildings of Xi'an Kanghong 88833134.00 Mortgaged for loan
Properties and buildings of Shaanxi Konka
Intelligent 35900372.54 Mortgaged for loan
Total 445326656.45
15. Fixed assets
Item Ending balance Beginning balance
Fixed assets 4405958959.37 5005836928.31
Liquidation of fixed assets
Total 4405958959.37 5005836928.31
247Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Fixed assets
Item Properties and Machinery Equipment Electronic TransportationBuildings Equipment equipment Other equipment Total
I. Original Book Value
1. Beginning Balance 3961200953.13 3483070002.32 293459158.90 52749559.59 191290520.96 7981770194.90
2. Increase in the Current
Year 83720909.97 152827832.87 8201922.73 978033.36 2689438.82 248418137.75
(1) Purchase 5419166.63 59698021.58 7518709.54 978033.36 2643088.24 76257019.35
(2) Transfer-in of
construction in progress 3415007.15 90314292.77 656040.70 16646.02 94401986.64
(3) Increase in business
combination
(4) Other increase 74886736.19 2815518.52 27172.49 29704.56 77759131.76
3. Decrease in the Current
Year 28877649.03 150089536.69 7625549.27 5262438.25 5006499.64 196861672.88
(1) Disposal or write-off 20018497.00 142382023.11 7522156.72 5262094.31 3442760.66 178627531.80
(2) Decrease for loss of
control 1537858.92 1537858.92
(3) Other decreases 8859152.03 7707513.58 103392.55 343.94 25880.06 16696282.16
4. Ending Balance 4016044214.07 3485808298.50 294035532.36 48465154.70 188973460.14 8033326659.77
II. Accumulated Depreciation
1. Beginning Balance 798169871.19 1638817015.47 211617889.35 41521906.29 133797222.94 2823923905.24
2. Increase in the Current
Year 127570622.20 233980199.22 24631683.84 2490034.69 12837212.21 401509752.16
(1) Provision 113645347.43 233980199.22 24631683.84 2429168.38 12837212.21 387523611.08
(2) Other increase 13925274.77 60866.31 13986141.08
248Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Properties and Electronic TransportationBuildings Machinery Equipment Equipment equipment Other equipment Total
3. Decrease in the Current
Year 11354398.09 117211383.36 6659070.08 4554463.34
3371962.88143151277.75
(1) Disposal or write-off 11349847.93 116602091.32 6634514.23 4554153.80 2923696.83 142064304.11
(2) Decrease for loss of
control 390776.95 390776.95
(3) Other decreases 4550.16 609292.04 24555.85 309.54 57489.10 696196.69
4. Ending Balance 914386095.30 1755585831.33 229590503.11 39457477.64 143262472.27 3082282379.65
III. Provision for Impairment
1. Beginning Balance 24030941.23 121076848.24 847936.84 832646.14 5220988.90 152009361.35
2. Increase in the Current
Year 148077476.05 246408788.21 2643277.81 1127523.75 6518543.55 404775609.37
(1) Provision 148077476.05 246408788.21 2643277.81 1127523.75 6518543.55 404775609.37
(2) Other increase
3. Decrease in the Current
Year 11486338.13 51233.10 20675.15 141403.59 11699649.97
(1) Disposal or write-off 11486338.13 51233.10 20675.15 141403.59 11699649.97
(2) Decrease for loss of
control
(3) Other decreases
4. Ending Balance 172108417.28 355999298.32 3439981.55 1939494.74 11598128.86 545085320.75
IV. Book value
1. Ending book value 2929549701.49 1374223168.85 61005047.70 7068182.32 34112859.01 4405958959.37
2. Book value at the
beginning of the year 3139000140.71 1723176138.61 80993332.71 10395007.16 52272309.12 5005836928.31
249Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Note * : The decrease in properties and buildings and machinery and equipment due to disposal or write-off this year was mainly
attributable to the disposal and auction of some outdated equipment of Frestec Refrigeration after Frestec Smart Home was put into
operation and the disposal of some idle equipment by Anhui Konka. * : The decrease in properties and buildings due to other reasons
this year was attributable to the transfer to investment properties.
250Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Temporarily idle fixed assets
Item Original book value Accumulated Provision fordepreciation impairment Book value
Machinery
Equipment 977416205.13 630494531.01 301239093.89 45682580.23
Housing and
building 364676775.60 220860420.94 106439814.25 37376540.41
Electronic
Equipment 8054959.87 7154053.85 387915.49 512990.53
Transportation
equipment 3663604.17 3385905.95 85993.19 191705.03
Other equipment 15124041.99 13436100.85 1539050.28 148890.86
Total 1368935586.76 875331012.60 409691867.10 83912707.06
(3)Fixed assets leased out through operating leases
Item Ending book value
Housing and building 166315497.45
Machinery Equipment 10853396.97
Electronic Equipment 139076.29
Transportation equipment 312.63
Other equipment 198247.64
Total 177506530.98
(4) Fixed assets without certificate of title
Item Book value Reason for incompleteproperty rights certificate
Fenggang Konka Smart TV Project 404194048.10 In progress
Anhui Konka properties and buildings 162429987.67 In progress
Standard electronic product plant in The project has not yet
Suining 140289781.57 completed the completionregistration
Yikang Building property 31087304.59 In progress
Frestec Smart Home properties and
buildings 404194048.10 In progress
(5) Impairment test of fixed assets
In 2025 impairment tests were conducted on the fixed assets of the Group’s headquarters
Jiangxi Konka Dongguan Konka etc.. The recoverable amounts were determined based
on the net amounts of fair value less costs of disposal and a total asset impairment loss of
RMB 404775609.37 was recognized.
251Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Book value Recoverable amount Impairment Amount
Properties and buildings of the
Group's headquarters 128113966.02 86868433.00 41245533.02
Equipment of Dongguan
Konka 29162230.62 1179269.91 27982960.71
Jiangxi Konka 379736152.62 80311836.13 299424316.49
Total 537012349.26 168359539.04 368652810.22
(Continued)
Item Determination method of fairvalue and disposal costs Key parameters
Basis for determining key
parameters
Market value = Market price of
Properties and comparable instances × Transaction Market price of Representative transaction examples
buildings of the condition correction coefficient × comparable from similar real estate transacted in
Group's Transaction date adjustment instances recent periods are selected as
headquarters coefficient × Real estate condition correction comparable instances for the
adjustment coefficient coefficient evaluated real estate.
1. The recovery unit price is
determined by the net proceeds from
the disposal of waste materials
Recovery unit (demolition and transportation costs
Equipment of Fair value = Recovery unit price × price equipment are borne by the recycling unit); 2. The
Dongguan Konka Equipment quantity; disposal cost = quantity equipment quantity is determinedIntermediary service fee intermediary through on-site inventory counts; 3.service fee The intermediary service fee mainly
includes evaluation fees and the
intermediary fees of the trading
platform.* Residual value/Fair value of The texture or weight of the recyclable
assets = Weight of recyclable materials with recycling value in the
materials with recycling value in assets to be dismantled was
assets to be dismantled (reasonable estimated or calculated mainly based
loss deducted) × Market unit price of on the corresponding materials
the corresponding materials; provided by the Company and the on-
* Relocatable equipment = Asset site survey results; the asset
acquisition cost × Comprehensive
Weight of acquisition cost was mainlycondition rate - Relocation
recyclable determined through direct inquiry todismantling expenses - Dismantling
materials asset dealers or manufacturers or withloss;
Jiangxi Konka acquisition cost reference to merchants' price lists
assets * Non-relocatable equipment = adjusted unit price information published on
Market value of the physical assets price relevant professional websites as well
in the equipment to be dismantled comprehensive as possible price fluctuations; while
after being disassembled into condition rate collecting comparable transaction
components - Equipment cases a number of recent comparable
disassembly cost transaction cases with similar uses
* Fair value of land use rights = and similar locations to the evaluated
evaluated unit price × land area; land use rights were compared with
evaluated unit price = (Adjusted unit the evaluated land use rights.price of Case 1 + Adjusted unit price Following the corrections for factors
of Case 2 + Adjusted unit price of such as transaction details
Case N) ÷ N transaction date and real estate
252Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Determination method of fairvalue and disposal costs Key parameters
Basis for determining key
parameters
condition the corrected adjusted price
was acquired.Total — — —
(6) Fixed assets with restricted ownership or use right
Item Ending book value Reason for restriction
Anhui Konka properties and buildings 571493720.58 Mortgaged for loan
Properties and buildings of Shaanxi Konka
Intelligent 357369651.51 Mortgaged for loan
Buildings and machinery and equipment of
Frestec Smart Home 231338364.12 Mortgaged for loan
Buildings of Chongqing Konka 147489012.28 Mortgaged for loan
Housing and buildings of Anhui Tongchuang 130401949.70 Mortgage for invoicing
Housing and buildings of Frestec Refrigeration 69933241.57 Mortgaged for loan
Buildings of Konka Group 49376036.91 Mortgaged for loan
Buildings of Jiangsu Konka Intelligent 30159089.35 Mortgaged for loan
Housing and buildings of XingDa HongYe 24149230.30 Mortgaged for loan
Machinery and equipment of Xinfeng
Microcrystalline 6300273.41 As collateral for finance lease
Housing and buildings of Jiangxi Konka Original shareholder guarantee1627384.41 mortgage
Machinery and equipment of Bokang Precision 86548.67 Litigation involved
Total 1619724502.81
253Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
16. Construction in progress
(1) Construction in progress situation
Ending balance Beginning balance
Item
Balance Provision forimpairment Book value Balance
Provision for
impairment Book value
Jiangxi High-permeability
Crystallisation Kiln 246576748.57 245645748.57 931000.00 246576748.57 56387538.57 190189210.00
Construction of Suining
Electronic Industrial Park 159521528.40 79545109.40 79976419.00 177739108.43 177739108.43
Workshops
Suining Konka Hongye Plant
Decoration Project 119870565.87 119870565.87 84574481.80 84574481.80
Production Line Renovation
Project of Jiangxi Konka 77761891.85 71639231.85 6122660.00 85354578.78 17688178.78 67666400.00
Construction and Decoration
Project of Phase I of
Dongguan Konka Science and 41073754.17 41073754.17 53096645.21 53096645.21
Technology Industrial Park
Other projects 352832974.12 84469891.23 268363082.89 333576197.93 33799544.33 299776653.60
Total 997637462.98 481299981.05 516337481.93 980917760.72 107875261.68 873042499.04
254Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Changes in major projects under construction in the current year
Increase in the Decrease in the current yearName Beginning balance current year Ending balanceTransfer to fixed assets Other decreases
Construction of Suining Electronic Industrial
Park Workshops 177739108.43 440698.68 18658278.71 159521528.40
Suining Konka Hongye Plant Decoration
Project 84574481.80 35296084.07 119870565.87
Total 262313590.23 35736782.75 18658278.71 279392094.27
(Continued)
Proportion of the Accumulated Including: Amount Capitalization
project EngineeringName Budget amount of of interest rate of the Source ofaccumulative input Progress interest capitalized in the interests in the funds
in budget (%) capitalization current year current year (%)
Construction of Suining Electronic own funds
Industrial Park Workshops 76342.22 95.00 95.00
Suining Konka Hongye Plant self-owned
Decoration Project 13774.10 87.00 87.00 funds and
bank loans
Total 90116.32
Note: Other decreases in the current year are mainly due to the adjustment of construction in progress costs based on settlement.
(3) Provision set aside for impairment of construction in progress in the current year
Category Beginning balance Increase in the current Decrease in theyear current year Ending balance Reason for provision
Work has been
Jiangxi High-permeability Crystallisation suspended and there are
Kiln Project 56387538.57 189258210.00 245645748.57 no future development
plans
Jiangxi High Transparent Substrate 33795466.66 17760843.60 44563.08 51511747.18 Work has been
255Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Category Beginning balance Increase in the current Decrease in theyear current year Ending balance Reason for provision
Production Line Project suspended and there are
no future development
plans
Work has been
Jiangxi Konka Production Line Renovation suspended and there are
Project 17688178.78 55820730.44 1869677.37 71639231.85 no future development
plans
Work has been
Suining Konka Flexible FPC Plant suspended and there are
Equipment Installation 32860823.52 32860823.52 no future development
plans
Construction of Suining Electronic Industrial
Park Workshops 79545109.40 79545109.40 Not yet ready for use
Work has been
Other projects suspended and there are4077.67 93242.86 97320.53 no future development
plans
Total 107875261.68 375338959.82 1914240.45 481299981.05 —
(4) Impairment test of construction in progress
1) The recoverable amount is determined at the net amount of the fair value minus the disposal expenses
Impairment DeterminationItem Book value Recoverable amount method of fair value Key parameters Basis for determining keyAmount and disposal costs parameters
Economic depreciation rate = (1 -
Jiangxi High- Recoverable amount (capacity of equipment expected to be
permeability = replacement costs × Economic utilized / original design capacity of
Crystallisation Kiln 190189210.00 931000.00 189258210.00 (1 - economic depreciation rate equipment) ^ economy of scale index)
Project depreciation rate) - x 100%. Economy of scale index i.e.disposal costs empirical data takes the value of 0.7
for the processing industry in general.
256Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Book value Recoverable amount Impairment
Determination
method of fair value Key parameters Basis for determining keyAmount and disposal costs parameters
Economic depreciation rate = (1 -
Jiangxi High Recoverable amount (capacity of equipment expected to be
Transparent = replacement costs × Economic utilized / original design capacity of
Substrate Production 28330153.60 10569310.00 17760843.60 (1 - economicdepreciation rate) - depreciation rate
equipment) ^ economy of scale index)
Line Project x 100%. Economy of scale index i.e.disposal costs empirical data takes the value of 0.7
for the processing industry in general.Economic depreciation rate = (1 -
Recoverable amount (capacity of equipment expected to be
Jiangxi Konka = replacement costs × Economic utilized / original design capacity ofProduction Line 61943390.44 6122660.00 55820730.44 (1 - economic depreciation rate equipment) ^ economy of scale index)Renovation Project depreciation rate) - x 100%. Economy of scale index i.e.disposal costs empirical data takes the value of 0.7
for the processing industry in general.Realisation coefficient = influence
coefficient of property right integrity ×
Suining Konka Recoverable amount influence coefficient of social demand
Flexible FPC Plant = replacement cost × Realisation and current policy × influence
Equipment 77448423.52 44587600.00 32860823.52 realisation coefficient coefficient coefficient of equipment type ×
Installation - disposal expenses influence coefficient of proposed
disposal method × influence coefficient
of disposal time limit
Economic depreciation rate = (1 -
Recoverable amount (capacity of equipment expected to be
= replacement costs × Economic utilized / original design capacity ofOther projects 434289.76 341046.90 93242.86 (1 - economic depreciation rate equipment) ^ economy of scale index)depreciation rate) - x 100%. Economy of scale index i.e.disposal costs empirical data takes the value of 0.7
for the processing industry in general.Total 358345467.32 62551616.90 295793850.42 — — —
257Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
2) The recoverable amount is determined based on the present value of the estimated future cash flows
Key
Item Book value Recoverable Impairment Years of
Key parameters Parameters in Basis for Determination of Key
amount Amount Forecast Period for the forecastperiod Stabilization Parameters in the Stabilization PeriodPhase
The discount rate adopts the weighted
average cost of capital (WACC) which is
the expected total return on investment
Construction of and the weighted average of the expected
Suining Electronic From June 1 After-tax Discount After-tax return on equity and the after-tax return on
Industrial Park 159521528.40 79976419.00 79545109.40 2026 to May 17 Rate Discount Rate debt. This valuation estimates the
Workshops 2070 expected return on investment of theenterprise where the construction in
progress and related land use rights are
located by selecting comparable
companies for analysis and calculation.Total 159521528.40 79976419.00 79545109.40 — — — —
258Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
17. Right-of-use assets
Right-of-Use Assets
Item Properties and Machinery ElectronicBuildings Equipment Equipment Total
I. Original Book Value
1. Beginning Balance 283992075.23 428197.71 329550.15 284749823.09
2. Increase in the
Current Year 12583212.22 2878728.21 367441.04 15829381.47
(1) Leased-in 12583212.22 2878728.21 367441.04 15829381.47
(2) Others
3. Decrease in the
Current Year 26963263.68 26963263.68
(1) Decrease for Loss of
Controlling Right 13614794.47 13614794.47
(2) Others 13348469.21 13348469.21
4. Ending Balance 269612023.77 3306925.92 696991.19 273615940.88
II. Accumulated
Depreciation
1. Beginning Balance 106211054.04 171279.11 181810.59 106564143.74
2. Increase in the
Current Year 50550632.05 674823.81 94062.82 51319518.68
(1) Provision 50550632.05 674823.81 94062.82 51319518.68
(2) Others
3. Decrease in the
Current Year 14344266.37 14344266.37
(1) Decrease for Loss of
Controlling Right 4524918.34 4524918.34
(2) Others 9819348.03 9819348.03
4. Ending Balance 142417419.72 846102.92 275873.41 143539396.05
III. Provision for
Impairment
1. Beginning Balance
2. Increase in the
Current Year
(1) Provision
3. Decrease in the
Current Year
(1) Disposal
4. Ending Balance
IV. Book value
259Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Properties and Machinery ElectronicBuildings Equipment Equipment Total
1. Ending book value 127194604.05 2460823.00 421117.78 130076544.83
2. Book value at the
beginning of the year 177781021.19 256918.60 147739.56 178185679.35
Remarks: The other decreases in original value and accumulated depreciation are mainly
due to the termination of leases.
260Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
18. Intangible assets
(1) List of intangible assets
Item Land use right Trademark right Patent and know-how Franchise rights
Right to use software and
others Total
I. Original Book Value
1. Beginning Balance 817198544.35 72197456.33 112424969.79 192998879.51 161769606.35 1356589456.33
2. Increase in the Current
Year 1072899.29 10298099.42 11370998.71
(1) Purchase 6044338.78 6044338.78
(2) Transfer-in of
construction in progress 4228288.94 4228288.94
(3) Other reasons 1072899.29 25471.70 1098370.99
3. Decrease in the Current
Year 6976554.62 4144403.75 25471.70 771835.35 11918265.42
(1) Disposal or write-off 6976554.62 4144403.75 771835.35 11892793.72
(2) Decrease for loss of
control
(3) Other reasons 25471.70 25471.70
4. Ending Balance 811294889.02 72197456.33 108280566.04 192973407.81 171295870.42 1356042189.62
II. Accumulated
amortization
1. Beginning Balance 108080921.57 23419142.45 67302648.17 22265157.50 101732539.26 322800408.95
2. Increase in the Current
Year 16861440.77 4163515.94 43200.00 10747059.76 20103235.16 51918451.63
(1) Provision 16861333.57 4163515.94 43200.00 10747059.76 20103235.16 51918344.43
(2) Others 107.20 107.20
261Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Land use right Trademark right Patent and know-how Franchise rights
Right to use software and
others Total
3. Decrease in the Current
Year 1130460.24 1243321.14 615384.62 2989166.00
(1) Disposal or write-off 1130460.24 1243321.14 615384.62 2989166.00
4. Ending Balance 123811902.10 27582658.39 66102527.03 33012217.26 121220389.80 371729694.58
III. Provision for
Impairment
1. Beginning Balance 564705.88 44943521.62 235294.12 45743521.62
2. Increase in the Current
Year 13304591.99 155930200.00 3305.52 169238097.51
(1) Provision 13304591.99 155930200.00 3305.52 169238097.51
3. Decrease in the Current
Year 2901082.61 2901082.61
(1) Disposal or write-off 2901082.61 2901082.61
4. Ending Balance 13304591.99 564705.88 42042439.01 155930200.00 238599.64 212080536.52
IV. Book value
1. Ending book value 674178394.93 44050092.06 135600.00 4030990.55 49836880.98 772231958.52
2. Book value at the
beginning of the year 709117622.78 48213608.00 178800.00 170733722.01 59801772.97 988045525.76
Note 1: The impairment of intangible assets during the Reporting Period was due to the provision for impairment of the land use right of
Suining Konka Industrial Park and the franchise right of Yibin Kangrun.Note 2: The decrease in land use rights due to disposal or retirement this year was mainly attributable to the sale of the land use right for
the third floor of Block A Jingyuan Building by the Group's headquarters.
262Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Land use right with certificate of title uncompleted
The Group did not have land use rights for which no title deeds had been issued.
(3) Impairment test of intangible assets
In 2025 impairment tests were conducted on the intangible assets of Suining Konka
Industrial Park Yibin Kangrun Medical etc.. Their recoverable amounts were determined
based on the present value of estimated future cash flows and a total asset impairment
loss of RMB 169238097.51 was recognized.Item Book value Recoverable amount Impairment Amount
Land use right of the FPC plant at
Suining Konka Industrial Park 5429547.08 2523060.30 2906486.78
Land use right of the sewage
treatment plant at Suining Konka 16978563.97 9438484.97 7540079.00
Industrial Park
Franchise right of Yibin Kangrun
Medical 160349282.90 4419066.57 155930200.00
Total 182757393.95 16380611.84 166376765.78
(Continued)
Item Years of
Key parameters Basis for Determination of Key
Forecast Period for the forecast
Key Parameters in
period Stabilization Phase
Parameters in the Stabilization
Period
1. The estimated growth rate of rent
during the growth period based on the
1. The unit price of rent in industry survey and the lease
the stabilization period contracts signed by the principal and
remains constant based on the evaluated entity for self-operatedLand use
right of the Pre-tax discount the estimated growth rate in
industrial parks; 2. The appraisers'
comprehensive analysis and
FPC plant at From 2026 to rate: 5.95%; the growth period; 2. The
Suining 2070 (expiring calculated based vacancy rate in the
determination of the lease vacancy
on January 12 on projected stabilization period is based rate in the stabilization period basedKonka 2070) revenue costs on the forecast; 3. Relevant on the investigation andIndustrial expenses etc. administrative expenses understanding of the leasing andPark remain constant with actual use of similar properties within
reference to the Company's the area of the evaluated target; and
overall budget management. 3. The principal and the evaluatedentity's comprehensive budget
management data and other
materials.
1. The PCB industrial
Land use sewage treatment plant with
right of the the capacity of daily average
sewage Pre-tax discount
1. Pollutant Discharge Permit; 2. The
of 3000 cubic meters of
From 2026 to rate: 8.61%; Entrusted Operation Contract signedtreatment sewage from the self-owned by the property rights holder and the
plant at 2070 (expiring calculated based park and external parks; 2.Suining on May 17 on projected
operating unit for Section I of Phase II
Assumption that the
Konka 2070) revenue costs
of the PCB Base Industrial
Pollutant Discharge Permit
Industrial expenses etc.Wastewater Treatment Plant (Konka
obtained for Section I of Industrial Sewage Plant).Park Phase II of the PCB Base
Industrial Wastewater
Treatment Plant (Konka
263Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Years of Key parameters Key Parameters in Basis for Determination of KeyItem Forecast Period for the forecast Stabilization Phase Parameters in the Stabilizationperiod Period
Industrial Sewage Plant)
held by the property rights
holder will be renewed upon
expiration without other
factors preventing such
renewal; 3. Assumption that
the Entrusted Operation
Contract signed by the
property rights holder and
the operating unit for
Section I of Phase II of the
PCB Base Industrial
Wastewater Treatment Plant
(Konka Industrial Sewage
Plant) will continue to sign
subsequent annual
entrusted operation service
matters according to the
original contract at the end
of the agreed operation
period.The Concession Agreement for the
Centralized Treatment Project of
Medical Wastes in Gao County Yibin
City the Circular of Yibin
Development and Reform
Commission Yibin Health
Commission and Yibin Ecology and
Pre-tax discount Environment Bureau on Defining the
Franchise From 2026 to rate: 6.87%; Pre-tax discount rate: Charging Standards for Medical
right of Yibin 2040 (expiring calculated based 6.87%; calculated based on Waste Disposal the Circular of Yibin
Kangrun on October 31 on projected projected revenue costs Development and Reform
Medical 2040) revenue costs expenses etc. Commission Yibin Health
expenses etc. Commission and Yibin Ecology and
Environment Bureau on Continuing to
Extend the Trial Period of the
Charging Standards for Medical
Waste Disposal (YFDRF [2026] No.
20) and the Medium- and Long-Term
Plan for Population Development in
Yibin City.Total — — — —
(4) Significant intangible assets
Item
Ending book value Remaining amortization period(year)
Land use right of Dongguan Konka 177693814.67 43.67
Land use right of Shaanxi Konka Intelligent 109657495.91 45.58
Land use right of Frestec Smart Home 86406223.51 44.75
264Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item
Ending book value Remaining amortization period(year)
Total 373757534.09 —
(5) Intangible assets with restricted ownership or use right
Item Ending book value Reason for restriction
Land use right of Dongguan Konka 177693814.67 Mortgaged for loan
Land use right of Shaanxi Konka
Intelligent 109657495.91 Mortgaged for loan
Land use right of Frestec Refrigeration 59941753.88 Mortgaged for loan
Land use right of Anhui Konka 51473396.00 Mortgaged for loan
Land use right of Chongqing Konka 42632871.92 Mortgaged for loan
Land use right of Anhui Tongchuang 16477106.80 Mortgaged for loan
Land use right of Jiangsu Konka
Intelligent 12805114.62 Mortgaged for loan
Land use right of Xingda Hongye 12176062.85 Mortgaged for loan
Land use right of Konka Group in
Guangming 3506913.18 Mortgaged for loan
Total 486364529.83
19. Goodwill
(1) Original book value of goodwill
Increase in the Decrease in the
current year current year
Formed
Investee Beginning balance through Ending balance
business Others Disposal Otherscombinatio
ns
Jiangxi Konka 340111933.01 340111933.01
Xingda Hongye 44156682.25 44156682.25
Total 384268615.26 384268615.26
(2) Provision for impairment of goodwill
Increase in the current year Decrease in thecurrent year
Investee Beginning balance Ending balance
Provision Others Disposal Others
Jiangxi Konka 340111933.01 340111933.01
Xingda 21959947.14 22196735.11 44156682.25
Hongye
Total 362071880.15 22196735.11 384268615.26
(3) Relevant information on the asset group or portfolio of asset groups of the
265Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
goodwill belongs to
Name Composition and basis of the asset group or combination Whether consistentof asset groups with previous years
It consists of all operating tangible assets and recognizable
intangible assets related to goodwill from the corresponding
subsidiary's main business as reflected in its balance sheet
Xingda Hongye asset group (excluding working capital and non-operating assets) based Yes
on whether the main cash inflows generated by the asset
group are independent from those generated by other assets
or asset groups.
(4) Specific determination method of recoverable amount
The Company's management performed an impairment test of goodwill at the end of the
year and recognized Xingda Hongye as a whole as a single asset group which is
consistent with prior years.Future cash flows are determined based on the financial budget for 2026 to 2030
approved by management and a discount rate of 11.81% is used. The cash flows of
Xingda Hongye for periods over 5 years are calculated based on a growth rate of 0%. The
Company engaged an appraisal institution Shenzhen Pengxin Asset Appraisal Land and
Real Estate Appraisal Co. Ltd. to evaluate the asset group of Xingda Hongye containing
goodwill using the income approach and took the present value of the estimated future
cash flows of the assets in the asset group as its recoverable amount. On April 23 2026 it
issued the Recoverable Amount of the Asset Group Containing Goodwill Formed by the
Merger and Acquisition of Guangdong Xingda Hongye Electronic Co. Ltd. in Relation to
the Goodwill Impairment Test to be Conducted by Konka Group Co. Ltd. (PXZPBZ [2026]
No. S0276) with December 31 2025 as the valuation reference date. The present value of
the asset group of Xingda Hongye on the valuation reference date was RMB 161140000.The book value of the asset group adjusted by fair value (including overall goodwill) was
RMB 205988400 of which the book value of goodwill (including minority shareholders)
was RMB 43523000. The recoverable amount of the asset group is less than the book
value of the asset group including goodwill. Therefore a goodwill impairment of RMB
22.1967 million was recognized in the current period based on the shareholding ratio in
Xingda Hongye.
20. Long-term deferred expenses
Item Beginning Increase in the Amortization in
Other decreases
balance current year the current year in the current Ending balanceyear
Decoration
expenses 296854146.58 6755139.70 60262379.95 1145902.08 242201004.25
Shop
expense 30536411.17 29463550.58 43464650.78 16535310.97
266Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Beginning Increase in the Amortization in
Other decreases
balance current year the current year in the current Ending balanceyear
Others 204790603.88 66031329.47 72234790.80 3361340.08 195225802.47
Total 532181161.63 102250019.75 175961821.53 4507242.16 453962117.69
21. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without offset
Ending balance Beginning balance
Item Deductible Deferred tax Deductibletemporary assets temporary Deferred tax assetsdifferences differences
Deductible losses 115441836.02 24185449.41 4072599866.74 821192030.16
Provision for asset
impairment 33348876.81 7518088.66 1711958350.44 383396704.79
Deferred income 126029904.75 26299979.55 165698149.55 36951815.16
Accrued expenses 79260.20 19815.05 154175886.01 30405673.44
Unrealized internal
transaction profits 23159179.99 5789795.00 21418121.43 5354530.36
Lease liabilities 128733917.69 31923273.77 190036774.82 46680049.35
Others 47323319.31 11257154.20 303824133.13 68258498.61
Total 474116294.77 106993555.63 6619711282.12 1392239301.87
(2) Deferred tax liabilities without offset
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Asset revaluation
appreciation from a
business combination 131234455.38 28976378.21 148603098.25 32684086.93
not under common
control
Prepaid interest 16906513.97 4226628.50 21809373.23 5452343.31
Accelerated
depreciation of fixed 2198376.27 443840.17
assets
Financial assets
measured at fair value
through current 165075229.25 41268807.31 164553726.22 41138431.56
gains/losses
Right-of-Use Assets 125148918.49 31020361.63 177009862.45 43672811.85
Others 53694103.36 8982879.15 57798900.95 9907661.66
Total 492059220.45 114475054.80 571973337.37 133299175.48
267Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Details of unconfirmed deferred tax assets
Item Ending balance Beginning balance
Deductible losses 10631764118.90 5076924357.43
Deductible temporary differences 14733642383.21 4057061699.25
Total 25365406502.11 9133986056.68
(4) Deductible losses from unrecognized deferred tax assets will be expired in the
following years
Year Ending balance Beginning balance Remarks
2025252950466.34
2026403268956.95313956730.12
20271334876912.27307074252.94
2028980877535.65710259863.04
20291311131269.351491466390.36
2030 and beyond 6601609444.68 2001216654.63
Total 10631764118.90 5076924357.43 —
22. Other non-current assets
Ending balance
Item
Balance Provision forimpairment Book value
Prepayment for land purchase 1029457502.92 517841855.90 511615647.02
Prepayment for construction
equipment and other long-term 89390490.57 89390490.57
assets
Total 1118847993.49 517841855.90 601006137.59
(Continued)
Beginning balance
Item
Balance Provision forimpairment Book value
Prepayment for land purchase 1029457502.92 1029457502.92
Prepayment for construction
equipment and other long-term 119220467.55 119220467.55
assets
Total 1148677970.47 1148677970.47
268Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
23. Assets with restricted ownership or use rights
End of the year
Item
Balance Book value Type of restriction Restriction details
Among them RMB 525901180.93
is margin deposits which are
pledged for borrowings or issuing
bank acceptance bills; RMB
Monetary funds Margin time 612670635.63 represents time1293472374.79 1293472374.79 deposits etc. deposits that are not available for
early withdrawal and are pledged as
collateral for borrowings; RMB
154900558.23 is restricted for
other reasons.Accounts
receivable 1479824.68 1448244.31 Pledge Pledge loan
Inventories 213889093.11 161827378.00 Mortgage Mortgaged for loan
Investment
properties 789216793.66 445326656.45 Mortgage Mortgaged for loan
Mortgage for finance lease
Fixed assets 2159388777.59 1619724502.81 Mortgage mortgage loans and former
shareholder guarantee
Intangible
assets 567108433.14 486364529.83 Mortgage Mortgaged for loan
Total 5024555296.97 4008163686.19 — —
(Continued)
Beginning
Item
Balance Book value Type ofrestriction Restriction details
Among them RMB 556608881.87 is
margin deposits which are pledged for
borrowings or issuing bank
acceptance bills; RMB
Monetary funds Time deposits 567478893.23 represents time1332589771.28 1332589771.28 margins etc. deposits that are not available for
early withdrawal and are pledged as
collateral for borrowings; RMB
208501996.18 is restricted for other
reasons.Accounts
receivable 1837337.71 1798852.71 Pledge Pledge loan
Notes Pledge Pledged for the issuance of bankreceivable 15900000.00 15900000.00 acceptance bills
Inventories 383413182.26 379790291.96 Mortgage Mortgaged for loan
Investment
properties 790608780.11 712454010.27 Mortgage Mortgaged for loan
Fixed assets Mortgage Mortgage for finance lease mortgage1832372199.20 1551889522.63 loans and former shareholder
269Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning
Item
Balance Book value Type ofrestriction Restriction details
guarantee
Intangible Mortgage Mortgage for finance lease andassets 664764256.55 587351084.33 mortgage loans
Total 5021485527.11 4581773533.18 — —
24. Short-term borrowings
(1) Classification of short-term borrowings
Type of borrowings Ending balance Beginning balance
Credit loan 3736619333.91 4709049751.78
Guaranteed loan 449087810.41 629950527.05
Mortgaged for loan 390208408.34 402171189.43
Total 4575915552.66 5741171468.26
(2) Outstanding short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current year.
25. Notes payable
Type of note Ending balance Beginning balance
Bank acceptance bills 653949070.29 850916858.18
Commercial acceptance bills 289868697.62 299393998.52
Total 943817767.91 1150310856.70
Note: There were no notes payable that were due but unpaid at the end of the current year.
26. Accounts payable
(1) Presentation of accounts payable
Item Ending balance Beginning balance
Within 1 year 1392600370.15 2295798887.75
1 to 2 years 252209408.86 194600008.24
2 to 3 years 130867724.12 101677548.46
Over 3 years 202058868.16 182539343.79
Total 1977736371.29 2774615788.24
(2) Significant accounts payable aging more than one year or overdue
Unit Ending balance Reason for Non-repayment orCarry-over
Company A 111159114.76 Pending Settlement
Company B Final payment for the project not77027260.07 yet settled
270Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Unit Ending balance Reason for Non-repayment orCarry-over
Company C Final payment for the project not42192153.10 yet settled
Company D 34189624.82 Pending Settlement
Company E 30327400.00 In Litigation
Company F 30159458.13 Pending Settlement
Company G 25779987.00 Pending Settlement
Company H 10600000.00 Pending Settlement
Total 361434997.88
(3) Whether there are any overdue payments to small and medium-sized enterprises
(applicable to SZSE)
Number of Overdue Contracts 325
Amount of Overdue Contracts 703656073.35
Overdue and Unpaid Amount 253541028.01
27. Other payables
Item Ending balance Beginning balance
Interest Payable
Dividends Payable
Other payables 6565100788.16 3502796381.63
Total 6565100788.16 3502796381.63
(1) Other payables presented based on the nature of the funds
Nature of funds Ending balance Beginning balance
Expenses Payable 792764274.26 775131170.51
Security Deposit Down Payment and
Deposit 272858608.90 283501144.00
Trading Funds 1163502426.04 489457474.93
Advance Payment 3860617.67 7758315.35
Related Party Borrowing 2395873661.72 221405227.76
Equity Payable 1870346451.75 1615155483.71
Others 65894747.82 110387565.37
Total 6565100788.16 3502796381.63
271Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Significant other payables with an age of more than one year or overdue
Unit Ending balance Reason for Non-repayment orCarry-over
Equity repurchase amount and
Company I 1469134969.86 interest arising from the Ypfun IPO
VAM agreement
Company J 235788807.29 Accrue patent fees
Company K 66082529.10 Pending Settlement
Company L 65077215.48 Unsettled construction payments
Company M 30000000.00 Performance bond
Company N 20301936.47 Pending Settlement
Company O 18000000.00 Pending Settlement
Company P 15646109.30 Unsettled rent
Company Q Compensation for installment14925006.90 payments
Company R Compensation for installment14279584.10 payments
Company S 13618181.08 Payment conditions not met
Company T 12780275.13 Pending Settlement
Total 1975634614.71 -
28. Advances from customers
Category Ending balance Beginning balance
Rent 3426361.65 3481262.87
Total 3426361.65 3481262.87
29. Contract liabilities
(1) Contract liabilities
Item Ending balance Beginning balance
Sales advances received 256506499.39 623555669.97
Total 256506499.39 623555669.97
Remarks: Contract liabilities over one year are detailed in "VI.41.Other non-current
liabilities" in this note.
(2) Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the
current year.
(3) Significant changes in book value in the current year
The significant decrease in the balance of contract liabilities compared with the end of the
previous year was mainly due to the fact that the advance payments for pre-sale
272Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
properties of Nantong Konghai and the payment for goods early collected by Hongkong
Konka met the revenue recognition conditions in the current period and were carried
forward to operating revenue.
30. Employee benefits payable
(1) Categories of employee benefits payable
Item Beginning Increase in the Decrease in thebalance current year current year Ending balance
Short-term
remuneration 237237008.22 1228905430.20 1253392987.78 212749450.64
Post-employment
benefits - defined 1032772.61 119675904.48 119573826.35 1134850.74
contribution plans
Dismissal benefits 5462068.95 19267545.40 15438402.63 9291211.72
Total 243731849.78 1367848880.08 1388405216.76 223175513.10
(2) Short-term remuneration
Item Beginning Increase in the Decrease in thebalance current year current year Ending balance
Salaries bonuses
allowances and subsidies 230731246.88 1073263791.23 1097064848.08 206930190.03
Employee welfare
expenses 3334946.15 47356378.18 48119491.70 2571832.63
Social insurance
premiums 533555.71 50622958.45 50622051.59 534462.57
Including: medical
insurance premiums 387627.84 44641995.31 44634078.56 395544.59
Work injury insurance
premiums 77640.15 4453636.93 4459752.19 71524.89
Maternity insurance
premiums 68287.72 1527326.21 1528220.84 67393.09
Housing fund 507627.65 44148060.73 44107422.86 548265.52
Labour union fees and
employee education fees 1563130.18 11097538.02 10571609.08 2089059.12
Others 566501.65 2416703.59 2907564.47 75640.77
Total 237237008.22 1228905430.20 1253392987.78 212749450.64
(3) Defined contribution plans
Item Beginning balance Increase in the Decrease in thecurrent year current year Ending balance
Basic pension
insurance 904488.43 115008760.46 114840773.11 1072475.78
Unemployment
insurance premiums 128284.18 4667144.02 4733053.24 62374.96
Total 1032772.61 119675904.48 119573826.35 1134850.74
273Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
31. Taxes payable
Item Ending balance Beginning balance
VAT 41389783.89 18304436.27
Property tax 7873067.23 11724042.19
Stamp duty 5189868.71 8598131.85
Land value increment tax 4541408.65 643627.96
Land use tax 2955305.79 3640999.21
Enterprise income tax 2902794.24 46039928.61
Personal income tax 2404290.78 2590216.18
Tariff 1544659.31 1584862.54
City construction and maintenance tax 1090729.63 455815.56
Education fees and local education
surcharge 804441.46 384461.10
Others 579905.73 646189.11
Total 71276255.42 94612710.58
32. Non-current liabilities maturing within one year
Item Ending balance Beginning balance
Bonds payable due within one year 1997255226.21 2510473199.20
Long-term borrowings due within one year 1610967861.49 4099941220.89
Lease liabilities due within one year 42617527.51 44667151.05
Long-term payables due within one year 452824.05
Total 1997255226.21 2510473199.20
33. Other current liabilities
Item Ending balance Beginning balance
Input tax to be carried forward 9709568.79 39793570.78
Refunds payable 10947147.43 17262340.52
Accounts payable paid by endorsement of
outstanding notes at the end of the reporting period 25720556.07 12820620.61
Total 46377272.29 69876531.91
274Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
34. Long-term borrowings
Type of borrowings Ending balance Beginning balance
Guaranteed loan 1255126167.17 3426786189.06
Credit loan 5466646895.34 2407276815.65
Entrusted borrowings 2125382964.61
Mortgaged for loan 1044296964.74 1271960335.66
Pledge loan 382824571.78 399184717.84
Less: Amount due within one year
(see Note VI.32) 1610967861.49 4099941220.89
Total 6537926737.54 5530649801.93
35. Bonds payable
(1) Categories of bonds payable
Item Ending balance Beginning balance
Corporate bonds 3593930102.58 4805666700.25
Less: Bonds payable due within one
year (see Note VI.32) 1997255226.21 2510473199.20
Total 1596674876.37 2295193501.05
275Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Changes in bonds payable
Par value Issue
Bond name Total par value Bond Issue amount Beginning balance Issuance in the Accrue interest by Amortization of Repayment in the
Whether
Interest Date maturity current year par value premium/discount current year
Ending balance
rate Default
22 Konka 01
(note ) 1200000000.00 3.23% 2022/7/14 3 years 1195800000.00 1218719622.62 19380000.00 660377.36 1238759999.98 No*
22 Konka 03
(note ) 600000000.00 3.30% 2022/9/8 3 years 597900000.00 606159748.49 13200000.00 440251.57 619800000.06 No*
22 Konka 05
(note ) 600000000.00 3.50% 2022/10/18 3 years 597900000.00 604754717.04 15750000.00 495282.92 620999999.96 No*
24 Konka 01
(note ) 1500000000.00 4.00% 2024/1/29 3 years 1495200000.00 1552452830.14 60000000.00 1509434.00 60000000.00 1553962264.14 No*
24 Konka 02
(note ) 400000000.00 4.00% 2024/3/18 3 years 398720000.00 411742557.65 15999999.96 402515.72 16000000.00 412145073.33 No*
24 Konka 03
(Note ) 400000000.00 4.03% 2024/3/18 3 years 398720000.00 411837224.31 16119999.96 402515.72 16120000.00 412239739.99 No*
25 Konka 01
(Note 410000000.00 3.50% 2025/6/23 3 years 408688000.00 408688000.00 7493888.87 374930.84 416556819.71 No* )
25 Konka 03
(Note ) 790000000.00 2.80% 2025/7/4 3 years 787472000.00 787472000.00 10937111.09 617094.32 799026205.41 No*
Total 5900000000.00 — — — 5880400000.00 4805666700.25 1196160000.00 158880999.88 4902402.45 2571680000.00 3593930102.58 —
Note * : On July 14 2022 the Company issued RMB1.2 billion of public placement corporate bonds with a duration of three years an annual interest rate of 3.23% and a maturity date of July 14 2025.Note * : On September 8 2022 the Company issued RMB600 million of private placement corporate bonds with a duration of three years an annual interest rate of 3.30% and a maturity date of
September 8 2025.Note * : On October 18 2022 the Company issued RMB600 million of private placement corporate bonds with a duration of three years an annual interest rate of 3.50% and a maturity date of October
182025.
Note * : On January 29 2024 the Company issued RMB 1.5 billion of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's
put option at the end of the second year) an annual interest rate of 4.00% and a maturity date of January 29 2027.Note * : On March 18 2024 the Company issued RMB 400 million of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's
put option at the end of the second year) an annual interest rate of 4.00% and a maturity date of March 18 2027.Note * : On March 18 2024 the Company issued RMB400 million of private placement corporate bonds with a duration of three years an annual interest rate of 4.03% and a maturity date of March 18
2027.
Note * : On June 23 2025 the Company issued RMB 410 million of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's
put option at the end of the second year) an annual interest rate of 3.50% and a maturity date of June 23 2028.Note * : On July 4 2025 the Company issued RMB 790 million of private placement corporate bonds with a duration of three years (with an issuer's option to adjust the coupon rate and an investor's put
option at the end of the second year) an annual interest rate of 2.80% and a maturity date of July 4 2028.Note * : China Resources Inc. provides a full unconditional and irrevocable joint and several liability guarantee for the due payment of these public and private placement corporate bonds.
276Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
36. Lease liabilities
Item Ending balance Beginning balance
Lease liabilities 139476496.26 191228739.57
Less: Lease liabilities due within one year (see
Note VI.32) 42617527.51 44667151.05
Total 96858968.75 146561588.52
37. Long-term payables
Item Ending balance Beginning balance
Payable finance lease payments 2113713.86 6314362.65
Less: Unrecognized financing expenses 80486.84 356990.36
Amount above due within one year (see Note VI.32) 452824.05
Total 2033227.02 5504548.24
38. Long-term employee benefits payable
Item Ending balance Beginning balance
Post-employment benefits - net liabilities of defined
benefit plans 4519491.87 4608659.47
Total 4519491.87 4608659.47
39. Provisions
Item Ending balance Beginning balance Reason for formation
Performance compensation or
contingent consideration 346222251.09 346222251.09
Product quality assurance After-sales services for57824544.20 80603137.10 household appliances
Pending litigation 446591769.85 206591.51
Disposal expenses 2084301.83 1401752.49
Total 852722866.97 428433732.19 —
40. Deferred income
(1) Categories of deferred income
Item Beginning balance Increase in the Decrease in thecurrent year current year Ending balance
Reason for
formation
Government Related to
grants 393437007.37 72028772.87 57289984.73 408175795.51 assets/income
Total 393437007.37 72028772.87 57289984.73 408175795.51 —
277Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(2) Government subsidy items
Subsidies Amount Amount Amount of
Beginning recognized as recognized as cost offset Others End of the year Related to
Government Grant Projects increased inthe current non-operating other income in the assets/incoBalance
year revenue in the in the current current
Change Balance me
current year year year
Plant construction subsidy for Related to
Yibin Konka Industrial Park 101225904.13 2319532.32 98906371.81 assets
Medical waste centralized
treatment project in Gaoxian Related to27430784.61 5000000.00 1730503.55 30700281.06
County Yibin City assets
Rewards and subsidies for
Special Project for Supporting
the Development of Advanced Related to
Manufacturing and Modern 31510328.22 2458697.27 29051630.95 assets
Service Industry of Henan
Frestec Smart Home
Shenzhen Industrial Investment
Project Support Program for Related to6787857.01 16180000.00 521936.40 22445920.61
Konka Group Headquarters assets
Industrial support funds for Related to
Suining Konka Industrial Park 19776548.54 239936.88 19536611.66 assets
Industrial rewards and subsidies Related to
of Henan Frestec Smart Home 19734932.95 481353.47 19253579.48 assets
Shaanxi Konka Smart's
equipment renewal supported by Related to
ultra-long-term special treasury 19060000.00 19060000.00 assets
bonds
Returned payments for land by Related to
Chongqing Konka 17541818.31 392727.24 17149091.07 assets
278Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Subsidies Amount Amount Amount of
Beginning increased in recognized as recognized as cost offset Others End of the year Related toGovernment Grant Projects the current non-operating other income in the assets/incoBalance revenue in the in the current current Change Balanceyear mecurrent year year year
Plant decoration subsidy for
Yibin Konka Science and Related to8635292.92 3000000.00 1863457.86 9771835.06
Technology Industrial Park assets
Other government subsidies Related to
related to assets/income 160793540.68 28788772.87 27193011.11 17400.00 -20071428.63 142300473.81 assets/income
Total 393437007.37 72028772.87 37201156.10 17400.00 -20071428.63 408175795.51
279Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
41. Other non-current liabilities
Item Ending balance Beginning balance
Contract liabilities over one year 283739354.36 207378781.21
Total 283739354.36 207378781.21
42. Share capital
Increase/decrease (+/-) in the current year
Capital
Item Beginning balance New Bonus reserves Ending balance
issues shares converted Others Subtotalinto share
capital
Total shares 2407945408.00 2407945408.00
43. Other equity instruments
Outstanding financial Beginning Increase in the current year
instruments Quantity Book value Quantity Book value
Perpetual bonds 5000000000.00 5000000000.00
Total 5000000000.00 5000000000.00
(Continued)
Outstanding financial Decrease in the current year End of the year
instruments Quantity Book value Quantity Book value
Perpetual bonds 5000000000.00 5000000000.00
Total 5000000000.00 5000000000.00
Note: On December 16 2025 the Company issued perpetual bonds to its controlling
shareholder Panshi Runchuang (Shenzhen) Information Management Co. Ltd. According
to the relevant contract the aforementioned perpetual bonds have no definite maturity
date and the Company has the right to defer interest payments. At the same time the
Company has the sole discretion to redeem the perpetual bonds and has no contractual
obligation to deliver cash or other financial assets. Therefore they are recognized as other
equity instruments.
44. Capital reserves
Item Beginning balance Increase in the Decrease in thecurrent year current year Ending balance
Other capital
reserves 512840575.73 19768716.32 126029421.25 406579870.80
Total 512840575.73 19768716.32 126029421.25 406579870.80
Note: The reasons for the increase and decrease in capital reserves - other capital
reserves for the current year are as follows:
280Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
* The conversion of the originally listed long-term equity investment (Wuhan Tianyuan
Group Co. Ltd.) to financial assets held for trading resulted in a decrease in other capital
reserves of RMB 126029421.25 due to the change in accounting method;
* The equity incentives of the associate Chongqing Ypfun Technology Co. Ltd. resulted
in an increase in other capital reserves of RMB 301193.49;
* The deregistration of the associate E3info (Hainan) Technology Co. Ltd. resulted in an
increase of RMB 1508471.59 in other capital reserves;
* The capital increase and share expansion of the associate Hefei Kangxinwei Storage
Technology Co. Ltd. by introducing strategic investors resulted in an increase of RMB
17959051.24 in other capital reserves.
281Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
45. Other comprehensive income
Amount incurred in the current year
Less: Amount Less: Amount
recognized as recognized as
other othercomprehensive
Beginning comprehensive income in the Less: Attributable to the Attributable to End of the yearItem
Balance Amount incurred income in the Income
before income tax previous period previous period tax parent company
minority Balance
shareholders
and transferred and transferredto retained expense
after tax after tax
to gains/losses
in the Reporting earnings in the
Period ReportingPeriod
I. Other
comprehensive
income that cannot -6398878.20 -5901121.80 -5901121.80 -12300000.00
be reclassified to
gains/losses
Including: Changes in
fair value of other
equity instrument -6398878.20 -5901121.80 -5901121.80 -12300000.00
investments
II. Other
comprehensive
income reclassified to -2641412.12 26638229.86 13075019.21 13563210.65 10433607.09
gains/losses
Including: Other
comprehensive
income that can be
transferred to -2192546.02 1776376.21 1776376.21 -416169.81
gains/losses under
the equity method
282Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount incurred in the current year
Less: Amount Less: Amount
recognized as recognized as
other othercomprehensive
Beginning comprehensive
Item Amount incurred income in the income in the
Less: Attributable to the Attributable to End of the year
Balance Income minority Balance
before income tax previous period previous period parent companyand transferred tax after tax shareholdersand transferred to retained expense after taxto gains/losses
in the Reporting earnings in the
Period ReportingPeriod
Translation
differences of foreign
currency financial -448866.10 24861853.65 11298643.00 13563210.65 10849776.90
statements
Total of other
comprehensive -9040290.32 20737108.06 7173897.41 13563210.65 -1866392.91
income
283Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
46. Specific reserve
Item Beginning balance Increase in the Decrease in thecurrent year current year Ending balance
Safety production
fund 11249678.53 7743491.96 1796025.87 17197144.62
Total 11249678.53 7743491.96 1796025.87 17197144.62
47. Surplus reserves
Item Beginning balance Increase in the
Decrease in
current year the current Ending balanceyear
Statutory surplus
reserve 1005961774.19 1005961774.19
Discretionary surplus
reserve 238218590.05 238218590.05
Total 1244180364.24 1244180364.24
48. Retained earnings
Item The current year Last year
Undistributed profit at the end of last year before
adjustment -1797506898.08 1474561975.85
Adjustment to total undistributed profits at the beginning
of the year (+ for increase and - for decrease) -777201329.82 -347232776.81
Including: retroactive adjustment to the Accounting
Standards for Business Enterprises and relevant new
regulations
Change in accounting policies
Correction of significant prior period errors -777201329.82 -347232776.81
Changes in the scope of consolidation under common
control
Adjusted undistributed profit at the beginning of the year -2574708227.90 1127329199.04
Add: Net profit attributable to owners of the parent
company in the current year -12582399856.80 -3725557221.78
Others 23519794.84
Loss offset by surplus reserves
Capital reserves used to offset losses
Less: Appropriation of statutory surplus reserve
Appropriation of discretionary surplus reserve
Appropriation to general risk reserves
Ordinary share dividends payable
Ordinary share dividends transferred to capital stock
Ending balance of the current year -15157108084.70 -2574708227.90
284Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
49. Operating revenue and cost of sales
(1) Operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
activity 9222377316.60 8993917477.41 10417600703.11 10306208764.64
Other 613097599.93 436800440.79 697163266.48 555615226.55
Total 9835474916.53 9430717918.20 11114763969.59 10861823991.19
(2) Information on the breakdown of operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Category of contracts Operating Cost of sales OperatingRevenue Revenue Cost of sales
Business type
Including: Colour TV 4192163402.41 4280594033.28 5027758205.02 5238743506.77
business
White goods business 3815259215.10 3605987282.66 4127243310.93 3837066870.14
PCB business 529852068.40 484651274.02 480868974.92 428530129.53
Semiconductor and memory 162222125.34 176738680.35 170202408.61 256853882.82
chip business
Other 1135978105.28 882746647.89 1308691070.11 1100629601.93
Total 9835474916.53 9430717918.20 11114763969.59 10861823991.19
Classified by operating
region
Of which: Domestic 6753418875.25 6471030228.87 7903700862.49 7725612592.83
Overseas 3082056041.28 2959687689.33 3211063107.10 3136211398.36
Total 9835474916.53 9430717918.20 11114763969.59 10861823991.19
(3) Information in relation to the transaction price apportioned to the residual
contract performance obligation
At the end of the current year the revenue corresponding to the performance obligations
that have been signed but not yet performed or not yet fully performed is RMB
474728784.63 of which RMB 439643788.42 is expected to be recognized as revenue
in 2026 RMB 25750507.96 is expected to be recognized in 2027 and RMB 9334488.25
is expected to be recognized in 2028 and later years.
50. Taxes and surcharges
Item Amount incurred in the current year Amount incurred last year
Property tax 45555795.92 46155747.46
Stamp duty 28182133.01 39993676.00
285Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount incurred in the current year Amount incurred last year
Land use tax 17603998.17 19447128.15
Land value increment tax 8090412.22 4601595.90
Urban maintenance and construction tax 6194307.57 8067589.84
Education surcharge 2873255.31 3697149.73
Local education surcharge 1920673.28 2464766.48
Water conservancy fund 786979.37 925768.34
Others 269037.22 603913.09
Total 111476592.07 125957334.99
51. Selling expenses
Item Amount incurred in the currentyear Amount incurred last year
Employee compensation 306011654.51 346592018.83
Promotional activities expenses 90063910.51 142882509.25
Advertising expenses 76765634.35 107677304.60
Logistics expenses 55201268.85 69134847.32
Agency commissions 26086639.29 5470657.32
Travel expenses 17341756.89 21923991.20
Market service fees 16481201.63 10848646.14
Insurance expenses 10323067.04 10893622.99
Depreciation of fixed assets 9996730.17 5636281.47
Others 38947205.23 53238157.75
Total 647219068.47 774298036.87
52. Administrative expenses
Item Amount incurred in the currentyear Amount incurred last year
Employee compensation 276527007.66 314459207.37
Depreciation expenses 198768764.61 215615082.76
Intermediary fees 23695009.51 37100613.46
Water and electricity expenses 12935695.59 12036310.67
Travel expenses 4568062.61 7023438.59
Loss on scrapping of inventories 1841100.79 3905406.48
Others 45835197.23 61807774.13
Total 564170838.00 651947833.46
53. R& D expe
286Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount incurred in the currentyear Amount incurred last year
Salary 200826276.67 226287518.69
Depreciation and amortization expenses 116768922.25 105315963.39
New product trial production expense 17187524.66 18169936.41
Material expense 6034945.14 3315736.07
Patent fee 2156329.48 20011198.25
Testing expense 1599584.39 3046117.93
Others 41532254.37 40259369.60
Total 386105836.96 416405840.34
54. Finance costs
Item Amount incurred in the currentyear Amount incurred last year
Interest expense 871624731.68 953199337.05
Less: Interest income 134366718.80 215619251.81
Add: Exchange loss 45235956.80 -51329032.40
Other expenses 21722964.21 28736033.40
Total 804216933.89 714987086.24
55. Other income
Sources of other income Amount incurred in the currentyear Amount incurred last year
Transfer of deferred income 37201156.10 42154230.53
Tax rebates on software 14455781.19 4681629.92
Support funds 9435900.00 14923388.00
Rewards and subsidies 9107772.06 34231995.98
Subsidies for L/C exports 2876243.00 1250714.67
Tax and fee reductions 2423581.02 10191356.70
Post subsidies 1585184.87 1895971.87
Others -621266163.24 1271022.45
Total -544180545.00 110600310.12
56. Income from changes in fair value
Sources of gains from changes in the fair Amount incurred in the current
value year Amount incurred last year
Financial assets measured at fair value
through current gains/losses -460420971.18 -267484270.45
Estimated contingent consideration -95523883.70
287Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Sources of gains from changes in the fair Amount incurred in the current
value year Amount incurred last year
Total -460420971.18 -363008154.15
57. Investment income
Item Amount incurred in the Amount incurred lastcurrent year year
Returns on long-term equity investments calculated by the
equity method -379192413.39 -134541620.49
Return on investment arising from the disposal of long-term
equity investments -60235.73 101946531.33
Investment income from financial assets held for trading
during the holding period 420553.86 4240444.62
Investment income from disposal of financial assets measured
at fair value with changes included in current gains/losses -1807577.63 -26511417.25
Interest income from debt investments during the holding
period 5860451.37 19239106.21
Income from the derecognition of financial assets at amortized
cost -3484892.68 -4519585.64
Gains from debt restructuring -459737.22
Conversion of long-term equity investments accounted for by
the equity method to financial assets 655666680.89
Gains from remeasurement of residual equity at fair value
after losing control
Others
Total 277402566.69 -40606278.44
58. Credit impairment loss
Item Amount incurred in the currentyear Amount incurred last year
Bad debt loss of notes receivable -97525.15 -130021.70
Bad debt loss of accounts receivable -53871543.82 -125736732.85
Bad debt loss of other accounts receivable -1466630164.43 -280100956.11
Total -1520599233.40 -405967710.66
59. Asset impairment loss
Item Amount incurred in the currentyear Amount incurred last year
Impairment loss of long-term equity
investments -3175620107.46 -516085087.12
Inventory depreciation loss and contract
fulfillment cost impairment loss -749200712.14 -445305312.35
Provision for impairment of investment
property -643642921.78
Provision for impairment of other non-
current assets -517841855.90
288Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount incurred in the currentyear Amount incurred last year
Impairment loss of construction in progress -375338959.82 -17000002.50
Impairment loss on fixed assets -404775609.37 -20834518.11
Impairment loss on intangible assets -169238097.51
Provision for impairment of other current
assets -118264443.38
Provision for goodwill impairment -22196735.11
Contract asset impairment loss -64865.73 -191314.13
Total -6176184308.20 -999416234.21
60. Gains from disposal of assets
The current year Last year
Item
Amount Amount
Gains on disposal of non-current assets 24500775.05 13572230.63
Including: gains on disposal of non-current assets not classified as
held for sale 24500775.05 13572230.63
Including: gains on disposal of fixed assets 23893960.39 12323105.39
Gains on disposal of intangible assets 660377.36
Gains/losses on disposal of right-of-use assets 606814.66 537251.48
Others 51496.40
Total 24500775.05 13572230.63
61. Non-operating revenue
Amount recorded into
Item Amount incurred in the Amount incurred last the non-recurringcurrent year year gains/losses of the
current year
Income from compensation fines and
liquidated damages 9290317.11 19309630.18 9290317.11
Write-off of current accounts 8682318.14 12321231.59 8682318.14
Non-current assets damage and
retirement gains 271611.84 7381.77 271611.84
Others 4809048.67 4863863.75 4809048.67
Total 23053295.76 36502107.29 23053295.76
289Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
62. Non-operating expenses
Amount recorded into
Item Amount of the current Amount of last year the non-recurringyear gains/losses of the
current year
Estimated guarantee losses 396756575.84 396756575.84
Compensation expenses 11997239.95 5087299.42 11997239.95
Losses on damage and scrapping of
non-current assets 2942707.01 14433649.96 2942707.01
Performance compensation 69755761.30
Others 47816349.69 76298404.02 47816349.69
Total 459512872.49 165575114.70 459512872.49
63. Income tax expense
(1) Income tax expense
Item Amount incurred in thecurrent year Amount incurred last year
Income tax expenses in the current year 26859038.83 86944638.50
Deferred income tax expenses 1266380917.19 -17392309.50
Total 1293239956.02 69552329.00
(2) Adjustment process of accounting profits and income tax expenses
Item Amount incurred in the current year
Total consolidated profit in the current year -10944373563.83
Income tax expenses calculated at legal/applicable tax rate -2736093390.96
Impact of different tax rates applied by subsidiaries 318300135.41
Impact of adjustment of prior period income tax -20610.95
Impact of non-taxable income 9977787.88
Impact of non-deductible costs expenses and losses 4052515.16
Impact of using deductible losses on the deferred tax assets not recognized
previously
Impact of deductible temporary differences or deductible losses of deferred
tax assets not recognized in the current year 3728909448.52
Changes in the opening balance of deferred tax assets/liabilities due to
adjustment of tax rate
Others -31885929.04
Income tax expense 1293239956.02
64. Other comprehensive income
For details please refer to Note VI.45 “Other comprehensive income” of these notes.
65. Items in the cash flow statement
290Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(1) Cash related to operating activities
1) Cash received from other operating activities
Item Amount incurred in thecurrent year Amount incurred last year
Intercompany payments 104928846.18 99175088.89
Income from government grants 104405766.26 91084949.55
Deposits and security deposits received 87452563.95 123926037.77
Interest income from bank deposits 24204831.04 66117530.26
Compensation and penalty income 7937687.17 20552157.49
Others 46197994.79 63901195.67
Total 375127689.39 464756959.63
2) Cash paid for other operating activities
Item Amount incurred in thecurrent year Amount incurred last year
Cash expenses 473451116.19 803310338.17
Deposit and margin 204978244.69 120837849.81
Bank service charges 2746666.56 4474661.97
Payments made on behalf 28616.88 397101.66
Others 73385553.13 72308452.14
Total 754590197.45 1001328403.75
(2) Cash related to investing activities
1) Cash received from other investing activities
Item Amount incurred in thecurrent year Amount incurred last year
Recovery of interfund lending 6615000.00 10535206.45
Others 31007486.48 176130622.69
Total 37622486.48 186665829.14
2) Cash paid for other investing activities
Item Amount incurred in thecurrent year Amount incurred last year
Payment of interfund lending 100000000.00
Cash paid for disposal of subsidiaries 3969969.81
Others 21481193.45 34327401.00
Total 25451163.26 134327401.00
(3) Cash related to financing activities
1) Cash received from other financing activities
291Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount incurred in thecurrent year Amount incurred last year
Receipt of interfund lending 3174680000.00
Recovery of pledged margin deposits 2064913851.73 898936642.13
Others 162919.46
Total 5239756771.19 898936642.13
2) Cash paid for other financing activities
Item Amount incurred in thecurrent year Amount incurred last year
Margin deposits for pledge 1934866839.47 1608682236.20
Repayment of interfund lending 1023259856.14 18099962.83
Cash paid for leases 43948994.20 29886200.09
Financing expenses 18890693.71 26001127.56
Others 3423714.89 4300049.48
Total 3024390098.41 1686969576.16
292Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
3) Changes in liabilities arising from financing activities
Increase in the current year Decrease in the current year
Item Beginning balance Ending balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities
maturing within one 6655534395.19 3633511824.98 6613744304.62 24461300.34 3650840615.21
year
Short-term borrowings 5741171468.26 5863443113.20 176137247.72 7204836276.52 4575915552.66
Long-term borrowings 5530649801.93 5416321326.09 295276722.54 3140954568.38 1563366544.64 6537926737.54
Bonds payable 2295193501.05 1196160000.00 163806043.84 61229442.31 1997255226.21 1596674876.37
Lease liabilities 146561588.52 19596281.76 5852280.02 63446621.51 96858968.75
Long-term payables 5504548.24 729327.57 3965960.17 234688.62 2033227.02
Total 20374615303.19 12475924439.29 4289057448.41 17030582832.02 3648764381.32 16460249977.55
293Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(4) Notes to cash flows expressed in net amount
No cash flows were presented on a net basis in the current year.
(5) Significant activities and financial impacts that do not involve current cash
receipts and payments but affect the financial position of the enterprise or may
affect the cash flows in the future
Item Amount incurred in the current year
Payment for materials made by endorsement of notes
receivable 1556029208.45
Acquisition of long-term assets by endorsement of notes
receivable 84064414.22
Other payments made by endorsement of notes receivable 177588227.57
Total 1817681850.24
66. Supplementary data on the cash flow statement
(1) Supplementary information to the statement of cash flows
Item Amount of the current year Amount of last year
1. Reconciliation of net profit to cash flows from
operating activities: — —
Net Profit -12237613519.85 -4314107326.62
Add: Provision for asset impairment 6176184308.20 999416234.21
Credit impairment loss 1520599233.40 405967710.66
Depreciation of fixed assets depletion of oil and
gas assets depreciation of productive biological 444245049.90 460489835.67
assets
Depreciation of right-of-use assets 51319518.68 55180501.65
Amortization of intangible assets 51918344.43 53255782.40
Amortization of long-term prepaid expenses 175961821.53 140922010.97
Losses on disposal of fixed assets intangible
assets and other long-lived assets ("-" indicates -24500775.05 -13572230.63
income)
Losses on scrap of fixed assets ("-" indicates
income) 2671095.17 14426268.19
Losses on changes in fair value ("-" indicates
income) 460420971.18 363008154.15
Finance costs ("-" indicates income) 806202443.42 884664729.30
Investment loss ("-" indicates income) -277402566.69 40606278.44
Decrease in deferred tax assets ("-" indicates
increase) 1285245746.24 34334680.29
Increase in deferred income tax liabilities ("-"
indicates decrease) -18824120.68 -51726989.79
Decrease in inventories ("-" indicates increase) 289318178.99 -123830950.55
294Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount of the current year Amount of last year
Decrease in accounts receivable generated from
operating activities ("-" indicates increase) 87769220.84 574731714.03
Increase in accounts payable used in operating
activities ("-" indicates decrease) -367599629.08 692276671.15
Others -36915441.82 -42154230.53
Net cash generated from/used in operating activities -1611000121.19 173888842.99
2. Significant investment and financing
activities not involving cash:
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Balance of cash at the end of the year 5020469510.26 2783177476.45
Less: Beginning balance of cash 2783177476.45 5674784349.55
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents 2237292033.81 -2891606873.10
(2) Supplier financing arrangements
* Terms and conditions of supplier finance arrangements
The Group entered into agreements with banks and financial institutions under which
qualified suppliers approved by the Group can assign their eligible accounts receivable
from the Group to the banks. The Group fulfills its unconditional payment obligation when
the payables become due.* Balance Sheet Presentation Items and Related Information (Unit: RMB 10000)
Line items Ending balance
Accounts payable 75.35
Of which: Amount received by suppliers 75.35
Total 75.35
* Maturity date ranges of payments
Line items Ending
Liabilities under the arrangements 360-365 days after the date of issuance
Comparable accounts payable not under the arrangements -
* Changes in the current period not involving cash receipts and payments
The changes in the Company's aforementioned financial liabilities were not affected by
business combinations or exchange rate fluctuations.
295Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Net cash paid for the acquisition of subsidiaries in the current year
There was no net cash paid for the acquisition of subsidiaries in the current year.
(4) Net cash received from the disposal of subsidiaries in the current year
There was no net cash received from disposal of subsidiaries in the current year.
(5) Breakdowns of cash and cash equivalents
Item Ending balance Beginning balance
Cash 5020469510.26 2783177476.45
Including: Cash on hand 208.19
Bank deposits available for payment at any time 5015971489.92 2779974224.23
Other monetary funds available for payment at any time 4498020.34 3203044.03
Balance of cash and cash equivalents at the end of the
year 5020469510.26 2783177476.45
(6) Limited use but still presented as cash and cash equivalents
Reasons for classifying the
Item Amount of the currentyear Amount of last year funds as cash and cashequivalents
The proceeds can be used at
Project loan proceeds any time to make payments19476498.98 38316138.97 and such payments can only be
made for projects
The proceeds can be used at
Project pre-sale funds any time to make payments17245802.22 24054347.29 and such payments can only be
made for projects
Total 36722301.20 62370486.26 —
(7) Monetary funds not classified as cash and cash equivalents
Reasons for not
Item Amount of the current year Amount of last year classifying the funds ascash and cash
equivalents
Time deposits Pledged as collateral for612670635.63 567478893.23 borrowings
Pledged for borrowings or
Deposit margin 525901180.93 556608881.87 deposit for issuance of
bank acceptance bills
Frozen funds Not readily available for154900558.23 208501996.18 payment
Total 1293472374.79 1332589771.28 —
67. Items in the statement of changes in shareholders' equity
No "other" amount in the closing amount of last year was adjusted in the current year.
68. Foreign currency monetary items
(1) Foreign currency monetary items
296Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Year-end foreign currency Exchange rate Year-end balancebalance denominated in RMB
Monetary funds — —
Including: USD 27663141.48 7.02880 194438688.83
EUR 1354479.22 8.25498 11181198.87
EGP 7680868.79 0.14729 1131315.16
GBP 1.32 9.46484 12.49
HKD 1983191.10 0.90322 1791257.87
CAD 6.96 5.13345 35.73
PLN 1990983.02 1.95511 3892590.81
Accounts receivable — —
Including: USD 87163632.40 7.02880 612655739.41
EUR 90388.77 8.25498 746157.49
EGP 0.14729
HKD 1077432.71 0.90322 973158.77
AUD 49764.00 4.70569 234173.96
Other receivables — —
Including: USD 110851224.81 7.02880 779151088.94
EGP 108000.00 0.14729 15907.32
HKD 760190.76 0.90322 686619.50
JPY 21400000.00 0.04494 961805.88
Accounts payable — —
Including: USD 5589778.90 7.02880 39289437.93
EUR 42072.24 8.25498 347305.50
EGP 30620358.59 0.14729 4510072.62
HKD 14248.91 0.90322 12869.90
Other payables — —
Including: USD 3108148.44 7.02880 21846553.76
EUR 103562.95 8.25498 854910.08
EGP 498014.80 0.14729 73352.60
HKD 14616606.82 0.90322 13202011.61
(2) Overseas operating entities
The significant overseas entities include Konka Trading Hong Kong Konka Zhongkang
Storage Kangjet Jiali International and Xinying Semiconductor (Hong Kong). The main
297Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
overseas operating place is Hong Kong. The Company's recording currency is HKD since
the main currency in circulation in Hong Kong is HKD.VII. R& D expendit
Item Amount incurred in the currentyear Amount incurred last year
Salary 200826276.67 226287518.69
Depreciation and amortization
expenses 116768922.25 105315963.39
New product trial production expense 2156329.48 20011198.25
Material expense 17187524.66 18169936.41
Patent fee 1599584.39 3046117.93
Testing expense 6034945.14 3315736.07
Others 41532254.37 40259369.60
Total 386105836.96 416405840.34
Including: Expensed R&D expenditure 386105836.96 416405840.34
Capitalized R&D expenditure
VIII. Changes in the scope of consolidation
1. Business combinations not under common control
The Company had no combinations of businesses not under common control in the
current period.
2. Business combinations under common control
The Company had no business combinations under common control in the current period.
298Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
3. Disposal of subsidiaries
(1) Transactions or events resulting in loss of control over subsidiaries during the year
The
difference
between the
disposal Method and
proceeds and main Amount of
the carrying Book value Fair value of assumptions other
amount of of the the for comprehensiveProportion
Disposal Disposal Basis for the share of of remaining remaining
Gain or loss determining income related
Disposal ratio at method Point of determining net assets of remaining equity at the equity at the
arising from the fair value to the original
Subsidiaries consideration at the the remeasuring of the equitythe point loss of the point of equity on consolidated consolidated the remaining investment in
Name at the point of
loss of control of loss of
point of
loss of control loss of
subsidiary the date of financial financial remaining equity at the the subsidiary
control control attributable statement statementcontrol to the loss of level on the level on the equity at fair consolidated transferred to
disposed control date of loss date of loss value financial investment
investment at of control of control statement gains/losses or
the level on the retained
consolidated date of loss earnings
financial of control
statements
level
All rights and
obligations
Kangrong
Jiayuan 4221401.00 41.00 Transfer 2025/5/9
related to the Appraised
target equity 212859.38 10.00 977693.08 1029610.00 51916.92 price -
have been
transferred
299Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
4. Changes in the scope of consolidation due to other reasons
(1) Subsidiaries established in the current year
No subsidiaries were established in the current year.
(2) Subsidiaries deregistered or reduced in the current year
No subsidiaries were deregistered in the current year.
300Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
IX. Equity in other entities
1. Interest in subsidiary
(1) Compositions of the Group
Shareholding
No. Name of subsidiary Main Place of Place ofBusiness Registration Nature of Business
Percentage (%) Acquisition
method
Direct Indirect
1 Konka Venture Guangdong Guangdong Enterprise management consulting incubation Establishment orShenzhen Shenzhen management housing leasing etc. 51 investment
2 Yantai Konka Yantai Shandong Yantai Shandong Other professional consulting and investigation 51 Establishment orinvestment
3 Konka Enterprise Service Guiyang Guizhou Guiyang Guizhou Enterprise management consulting 51 Establishment orinvestment
4 Yibin Konka Incubator Sichuan Yibin Sichuan Yibin Commercial services 51 Establishment orinvestment
5 Anhui Konka Chuzhou Anhui Chuzhou Anhui Manufacturing 78 Establishment orinvestment
6 Kangzhi Trade Chuzhou Anhui Chuzhou Anhui Wholesale 78 Establishment orinvestment
7 Konka Electronic Guangdong GuangdongMaterial Shenzhen Shenzhen Other science and technology promotion services 100
Establishment or
investment
8 Konka Unifortune Guangdong Guangdong Establishment orShenzhen Shenzhen Trade and services 51 investment
9 Jiali International Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
10 Dongguan Konka Guangdong Guangdong Establishment orDongguan Dongguan Manufacturing 75 25 investment
11 Suining Konka Intelligent Suining Sichuan Suining Sichuan Wholesale 100 Establishment orinvestment
301Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place of Percentage (%) AcquisitionBusiness Registration Nature of Business method
Direct Indirect
12 Konka Europe Germany Frankfurt Germany Frankfurt International trade 100 Establishment orinvestment
13 Telecommunication Guangdong GuangdongTechnology Shenzhen Shenzhen Manufacturing 75 25
Establishment or
investment
14 Hong Kong KonkaCommunications Hong Kong China Hong Kong China Commerce 100
Establishment or
investment
15 Development of science Guangdong Guangdong Establishment orand technology industry Shenzhen Shenzhen Commerce 100 investment
16 Sichuan Konka Sichuan Yibin Sichuan Yibin Manufacturing 100 Establishment orinvestment
17 Yibin Smart Sichuan Yibin Sichuan Yibin Manufacturing 100 Establishment orinvestment
18 Anhui Tongchuang Chuzhou Anhui Chuzhou Anhui Manufacturing 100 Establishment orinvestment
19 Anhui ElectricalAppliance Chuzhou Anhui Chuzhou Anhui Manufacturing 51
Establishment or
investment
Business
20 Frestec Refrigeration Xinxiang Henan Xinxiang Henan Manufacturing 51 Combinations NotUnder Common
Control
21 Frestec Smart Home Xinxiang Henan Xinxiang Henan Manufacturing 51 Establishment orinvestment
Business
22 Frestec ElectricalAppliances Xinxiang Henan Xinxiang Henan Manufacturing 51
Combinations Not
Under Common
Control
23 Frestec Household Xinxiang Henan Xinxiang Henan Manufacturing 51 Business
302Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place of Percentage (%) AcquisitionBusiness Registration Nature of Business method
Direct Indirect
Appliances Combinations Not
Under Common
Control
24 Jiangsu Konka Smart Changzhou Jiangsu ChangzhouJiangsu Manufacturing 51
Establishment or
investment
25 Konka Communication Hebei Shijiazhuang Hebei Establishment orShijiazhuang Trade and services 100 investment
26 Pengrun Technology Guangdong Guangdong Trade and services 51 Establishment orShenzhen Shenzhen investment
27 Jiaxin Technology Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
28 Beijing Konka Electronics Hebei Langfang Hebei Langfang Home appliance sales 100 Establishment orinvestment
29 Tianjin Konka Tianjin Pilot Free Tianjin Pilot Free Establishment orTrade Zone Trade Zone Service industry 100 investment
30 Konka Circuit Guangdong GuangdongShenzhen Shenzhen Manufacturing 100
Establishment or
investment
31 Bokang Precision Guangdong Boluo Guangdong Boluo Manufacturing 100 Establishment orinvestment
32 Hong Kong Konka Hong Kong China Hong Kong China International trade 100 Establishment orinvestment
33 Kangdian Investment Hong Kong China Hong Kong China Investment holding 100 Establishment orinvestment
34 Zhongkang Storage Establishment orTechnology Hong Kong China Hong Kong China International trade 51 investment
35 Zhongkang Shaoxing Zhejiang Shaoxing Zhejiang Trade and services 51 Establishment or
Semiconductor investment
303Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place ofBusiness Registration Nature of Business
Percentage (%) Acquisition
method
Direct Indirect
(Shaoxing)
36 Kangjet Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
37 Kangdian Trading Hong Kong China Hong Kong China International trade 100 Establishment orinvestment
38 Kanghao Technology Cairo Egypt Cairo Egypt International trade 67 Establishment orinvestment
39 Konka North America USA California USA California International trade 100 Establishment orinvestment
40 Konka Investment Guangdong GuangdongShenzhen Shenzhen Capital market services 100
Establishment or
investment
41 Yibin Konka Industrial Sichuan Yibin Sichuan Yibin Industrial park development construction and Establishment orPark operation management 100 investment
42 Konka Capital Guangdong GuangdongShenzhen Shenzhen Capital market services 100
Establishment or
investment
43 Konka Suiyong Guangdong GuangdongShenzhen Shenzhen Commercial services 51
Establishment or
investment
44 Shengxing Industrial Guangdong GuangdongShenzhen Shenzhen Commercial services 51
Establishment or
investment
45 Zhitong Technology Guangdong GuangdongShenzhen Shenzhen Software and information technology services 51
Establishment or
investment
46 Electronics Technology Guangdong Guangdong Establishment orShenzhen Shenzhen Manufacturing 100 investment
47 Shenzhen Kangcheng Guangdong GuangdongShenzhen Shenzhen Software and information technology services 100
Establishment or
investment
48 Xiaojia Technology Guangdong Guangdong Retail trade 100 Establishment or
304Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place of Percentage (%) AcquisitionBusiness Registration Nature of Business method
Direct Indirect
Shenzhen Shenzhen investment
49 Haimen Konka Jiangsu Nantong Jiangsu Nantong Trade and services 100 Establishment orinvestment
50 Chengdu KonkaElectronics Sichuan Chengdu Sichuan Chengdu Manufacturing 100
Establishment or
investment
Business
51 Xingda Hongye Guangdong GuangdongZhongshan Zhongshan Manufacturing 51
Combinations Not
Under Common
Control
52 Liaoyang KangshunIntelligent Liaoning Liaoyang Liaoning Liaoyang Wholesale 100
Establishment or
investment
53 Liaoyang KangshunRenewable Liaoning Liaoyang Liaoning Liaoyang Comprehensive utilization of renewable resources 100
Establishment or
investment
54 Nanjing Konka Nanjing Jiangsu Nanjing Jiangsu Wholesale 100 Establishment orinvestment
55 Shanghai Konka Shanghai Shanghai Real estate industry 100 Establishment orinvestment
56 Yantai Kangjin Yantai Shandong Yantai Shandong Real estate industry 62.8 Establishment orinvestment
Business
57 Jiangxi Konka Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51 Combinations NotUnder Common
Control
Business
58 Xinfeng Microcrystal Nanchang Jiangxi Nanchang Jiangxi Manufacturing and processing 51 Combinations NotUnder Common
Control
305Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place ofBusiness Registration Nature of Business
Percentage (%) Acquisition
method
Direct Indirect
59 Shenzhen Nianhua Guangdong Guangdong Commercial services 100 Establishment orShenzhen Shenzhen investment
60 Shenzhen Konka Guangdong Guangdong Semiconductor 100 Establishment orSemiconductor Shenzhen Shenzhen investment
61 Chongqing Konka Chongqing Chongqing Software and information technology services 100 Establishment orinvestment
62 Ji'an Konka Ji'an Jiangxi Ji'an Jiangxi Commercial services 51 Establishment orinvestment
63 Suining Konka Industrial Suining Sichuan Suining Sichuan Industrial park development construction and 100 Establishment orPark operation management investment
64 Suining Electronic Establishment orTechnology Innovation Suining Sichuan Suining Sichuan Commercial services 100 investment
65 Shenzhen Chuangzhi Guangdong Guangdong Wholesale 100 Establishment orElectrical Appliances Shenzhen Shenzhen investment
Chongqing
66 Optoelectronic Chongqing Chongqing Research and experimental development 70 5 Establishment or
Technology investment
67 Xinying Semiconductor Guangdong Guangdong Computer telecommunications and other electronic 100 Establishment orShenzhen Shenzhen equipment manufacturing investment
68 Konka Xinyun Yancheng Jiangsu Yancheng Jiangsu Computer telecommunications and other electronic Establishment orSemiconductor equipment manufacturing 100 investment
69 Nanjing Konka Smart Nanjing Jiangsu Nanjing Jiangsu Science and technology promotion and application Establishment orservices 51 investment
70 Ningbo Kanghanrui Ningbo Zhejiang Ningbo Zhejiang Electrical machinery and equipment manufacturing 60 Establishment orElectric Appliances investment
71 Suining Jiarun Property Suining Sichuan Suining Sichuan Real estate industry 100 Establishment orinvestment
306Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place ofBusiness Registration Nature of Business
Percentage (%) Acquisition
method
Direct Indirect
72 Yibin Kangrun Sichuan Yibin Sichuan Yibin Ecological protection and environmental Establishment orgovernance services 67 investment
73 Hainan KonkaTechnology Haikou Hainan Haikou Hainan Commercial services 100
Establishment or
investment
Business
74 Jiangxi High Transparent Combinations NotSubstrate Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51 Under Common
Control
75 Nantong Kangdian Jiangsu Nantong Jiangsu Nantong Computer telecommunications and other electronic Establishment orequipment manufacturing 100 investment
76 Chuzhou Konka Chuzhou Anhui Chuzhou Anhui Manufacturing 94.9 Establishment orinvestment
77 Konka FlexibleElectronics Suining Sichuan Suining Sichuan Manufacturing 97.5
Establishment or
investment
78 Kangjia Hongye Suining Sichuan Suining Sichuan Manufacturing 95.05 Establishment orElectronics investment
79 Xinying Semiconductor Hong Kong China Hong Kong China Wholesale of computers software and auxiliary 100 Establishment or(Hong Kong) equipment investment
80 Konka Cross-border(Hebei) Handan Hebei Handan Hebei Wholesale 100
Establishment or
investment
81 Konka Central China Changsha Hunan Changsha Hunan Commercial services 100 Establishment orinvestment
82 Yibin Kangrun Medical Sichuan Yibin Sichuan Yibin Ecological protection and environmental 63.65 Establishment orgovernance services investment
83 Shaanxi Konka Intelligent Xi'an Shaanxi Xi'an Shaanxi Manufacture of household cleaning and sanitary Establishment orelectrical appliances 51 investment
307Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place of Nature of Business Percentage (%) AcquisitionBusiness Registration method
Direct Indirect
84 Chongqing Xinyuan Chongqing Chongqing Science and technology promotion and application 75 Establishment orSemiconductor services investment
85 Anlu Konka Anlu Hubei Anlu Hubei Software and information technology services 100 Establishment orinvestment
86 Kanghong Dongsheng Guangdong Guangdong Establishment orShenzhen Shenzhen Commercial services 95.09 investment
87 Guizhou Konka New Qiannan Prefecture
Qiannan
Material Technology Guizhou Prefecture Manufacturing and processing 51
Establishment or
Guizhou investment
88 Shanxi Smart Home Jincheng Shanxi Jincheng Shanxi Computer telecommunications and other electronic Establishment orAppliance equipment manufacturing 100 investment
89 Guizhou Kanggui Qiannan Prefecture
Qiannan
Materials Guizhou Prefecture Manufacturing and processing 70
Establishment or
Guizhou investment
90 Nantong Kanghai Jiangsu Nantong Jiangsu Nantong Real estate industry 51 Establishment orinvestment
91 Chongqing Kangyiyun Chongqing Chongqing Real estate industry 80 Establishment orinvestment
92 Jiangxi KonkaTechnology Park Shangrao Jiangxi Shangrao Jiangxi Commercial services 100
Establishment or
investment
Shangrao Konka
93 Electronic Technology Shangrao Jiangxi Shangrao Jiangxi Research and experimental development 100 Establishment or
Innovation investment
94 Zhejiang KonkaElectronics Shaoxing Zhejiang Shaoxing Zhejiang Research and experimental development 100
Establishment or
investment
95 Zhejiang KonkaTechnology Industries Shaoxing Zhejiang Shaoxing Zhejiang Commercial services 51 49
Establishment or
investment
308Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Shareholding
No. Name of subsidiary Main Place of Place ofBusiness Registration Nature of Business
Percentage (%) Acquisition
method
Direct Indirect
96 Xi'an Konka Intelligent Xi'an Shaanxi Xi'an Shaanxi Wholesale 51 Establishment orinvestment
97 Xi'an Konka Network Xi'an Shaanxi Xi'an Shaanxi Computer telecommunications and other electronic Establishment orequipment manufacturing 100 investment
98 Xi'an KanghongTechnology Industry Xi'an Shaanxi Xi'an Shaanxi Commercial services 40 60
Establishment or
investment
99 Xi'an Konka IntelligentTechnology Xi'an Shaanxi Xi'an Shaanxi Retail trade 100
Establishment or
investment
100 Songyang IndustryOperation Lishui Zhejiang Lishui Zhejiang Software and information technology services 51
Establishment or
investment
101 Kangyan Technology Guangdong Guangdong Computer telecommunications and other electronicShenzhen Shenzhen equipment manufacturing 100
Establishment or
investment
102 Songyang KonkaIntelligent Lishui Zhejiang Lishui Zhejiang Wholesale 100
Establishment or
investment
103 Konka North China Tianjin Tianjin Electrical machinery and equipment manufacturing 100 Establishment orinvestment
104 Digital technology Guangdong GuangdongShenzhen Shenzhen Software and information technology services 100
Establishment or
investment
(2) Significant non-wholly-owned subsidiaries
Name of subsidiary Shareholding of
Gains/losses attributable to
minority shareholders minority shareholders in the
Dividends declared to be distributed to Ending balance of minority
current year minority shareholders in the current year shareholders' equities
Shaanxi Konka Intelligent 49.00% -20016441.66 162406593.64
309Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Key financial information of significant non-wholly-owned subsidiaries
Ending balance
Name of
subsidiary Current Assets Non-Current Assets Total Assets Current Liabilities Non-CurrentLiabilities Total Liabilities
Shaanxi Konka 726253447.73 547389728.20 1273643175.93 643226943.87 298974204.21 942201148.08
Intelligent
(Continued)
Name of Beginning balance
subsidiary Current Assets Non-Current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities
Shaanxi Konka 523431034.77 560221880.91 1083652915.68 423606123.36 288250518.71 711856642.07
Intelligent
(Continued)
Amount incurred in the current year Amount incurred last year
Name of
subsidiary Operating
Total Cash flows from Total Cash flows
Revenue Net Profit comprehensive operating
Operating
Revenue Net Profit comprehensive from operatingincome activities income activities
Shaanxi Konka -
Intelligent 307282044.08 -40849880.93 26721619.02 260200550.68 -24414126.47 -24414126.47 42019883.3840849880.93
2. Equity in joint ventures or associates
(1) Significant joint ventures or associates
Shareholding Percentage (%) Accounting Method for
Name of Joint Ventures or Associates Main Place Place ofof Business Registration Nature of Business Investment in JointDirect Indirect Ventures or Associates
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Investment Fund (Limited Partnership) Zhuhai Zhuhai Investment Management 49.95 Equity Method
Shenzhen Jielunte Technology Co. Ltd. Shenzhen Shenzhen Professional Equipment 42.79 Equity Method
310Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Main Place Place of Shareholding Percentage (%) Accounting Method forName of Joint Ventures or Associates of Business Registration Nature of Business Investment in JointDirect Indirect Ventures or Associates
Manufacturing
(2) Key financial information of significant associates
Year-End Balance / Amount Incurred in Current Year Beginning-of-Year Balance / Amount Incurred in PreviousYear
Item Oriental Jiakang No. 1 (Zhuhai) Shenzhen Jielunte Oriental Jiakang No. 1 (Zhuhai)Private Equity Investment Fund Private Equity Investment Fund Shenzhen Jielunte
(Limited Partnership) Technology Co. Ltd. (Limited Partnership) Technology Co. Ltd.Current Assets 350138667.41 219896979.76 679918421.73 299214528.27
Including: Cash and Cash Equivalents 18775457.35 16787261.84 9020859.89 16394140.52
Non-Current Assets 381156956.39 385578306.45
Total Assets 350138667.41 601053936.15 679918421.73 684792834.72
Current Liabilities 20026785.45 280946973.50 10026785.45 310050065.52
Non-Current Liabilities 140456865.19 172196132.11
Total Liabilities 20026785.45 421403838.69 10026785.45 482246197.63
Total Net Assets 330111881.96 179650097.46 669891636.28 202546637.09
Including: Minority Interests 4215206.30 6414476.36
Equity Attributable to Shareholders of the
Parent Company 330111881.96 175434891.16 669891636.28 196132160.73
Share of Net Assets Calculated Based on the
Shareholding 164890885.04 75068589.93 334610872.32 83924951.58
Adjustments
-- Goodwill
311Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Year-End Balance / Amount Incurred in Current Year Beginning-of-Year Balance / Amount Incurred in PreviousYear
Item Oriental Jiakang No. 1 (Zhuhai) Oriental Jiakang No. 1 (Zhuhai)
Private Equity Investment Fund Shenzhen Jielunte Private Equity Investment Fund Shenzhen Jielunte
(Limited Partnership) Technology Co. Ltd. (Limited Partnership) Technology Co. Ltd.-- Unrealized Profit on Internal Transactions
-- Others
Book value of equity investments in
associated enterprises 164890885.04 80165191.30 334610872.32 89059544.64
Fair value of equity investments in associates
with publicly quoted prices
Operating Revenue 350072893.86 453598821.35
Finance costs -46291.23 10056355.95 -124906.64 5643459.99
Income tax expense 4961196.48 6482111.17
Net Profit -339771443.55 -22867630.96 3192911.59 -15630059.79
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -339771443.55 -22867630.96 3192911.59 -15630059.79
Dividend received from associates in the
current year
312Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(3) Summarized financial insignificant of unimportant joint ventures and
associates
Amount incurred at the end Amount incurred at the
Item of the year/in the current beginning of the year/in last
year year
Associates — —
Total book value of investments 1780982080.65 4304690436.53
The total of following items according to the
shareholding proportions — —
--Net profit -130602308.23 -127981842.74
--Other comprehensive income 1707518.13 -115491.69
--Total comprehensive income -128894790.10 -128097334.43
X. Government grants
1. Liability items involving government grants
Amount
Subsidies recognized as Amount transferred
Account title Beginning balance increased in the non-operating to other income in
current year revenue in the the current year
current year
Deferred income 393437007.37 72028772.87 37201156.10
(Continued)
Account title Other changes in thecurrent year Ending balance Related to assets/income
Deferred income -20088828.63 408175795.51 Related to assets/income
2. Government grants recognized as current gains/losses
Account title Amount incurred in the currentyear Amount incurred last year
Other income -547216758.04 99292763.50
Finance costs 287168.96 10040000.00
Remarks: Konka Hongye Electronics received a loan interest subsidy of RMB
287168.96 in the current year which directly offset the interest expenses in the current
finance costs.XI. Risks related to financial instruments
The Group's main financial instruments include borrowings accounts receivable
accounts payable trading financial assets equity instrument investments etc. Please
refer to Note VI for detailed descriptions of various financial instruments. The risks
related to these financial instruments and the risk management policies adopted by the
Group to mitigate these risks are described below. The management of the Group
313Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
manages and monitors these risk exposures to ensure that these risks are controlled
within a limited scope.
1. Management objectives and policies for various risks
The Group's objective in risk management is to achieve an appropriate balance between
risk and return minimize the negative impact of risk on the Group's operating
performance and maximize the interests of shareholders and other equity investors.Based on the risk management goal the basic strategy of the Group's risk management
is determining and analyzing the various risks faced by the Group setting up the bottom
line of risk and conducting appropriate risk management and timely supervising various
risks in a reliable way and controlling the risk within the range of limit.
(1) Market risk
1) Exchange rate 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 Group 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 Benelux
International Limited the Group'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 of December 31 2025 the Group'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 December 31 2025 December 31 2024
Monetary funds 27663141.48 47765558.32
Accounts receivable 87163632.40 86994147.59
Other receivables 110851224.81 108431901.40
Accounts payable 5589778.90 5367446.58
Other payables 3108148.44 3708173.01
The Group pays close attention to the impact of exchange rate changes on the Group'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.
2) Interest rate risk
The Group bears interest rate risk due to interest rate changes of interest-bearing
314Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
financial assets and liabilities. The Group's interest-bearing financial assets are mainly
bank deposits of which the majority of the variable interest rates are short-term in nature
while the interest-bearing financial liabilities are mainly bank borrowings and corporate
bonds. The Group's long-term bank borrowings and corporate 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 bank borrowings with floating interest rates. The
Group's policy is to maintain the floating interest rates of such borrowings to eliminate
the fair value risk of interest rate changes. As of December 31 2025 the balance of
such short-term borrowings was RMB 4575915552.66.
(2) Credit risk
As of December 31 2025 the maximum credit risk exposure that may cause financial
losses to the Group mainly came from losses generated from the Group's financial
assets due to failure of the other party to a contract to perform its obligations and the
financial guarantee undertaken by the Group including:
The book amount of the financial assets recognized in the consolidated balance sheet;
for financial instruments measured at fair value the book value reflects its risk exposure
but it is not the maximum risk exposure and its maximum risk exposure will change with
the change of fair value in the future.In order to reduce credit risk the Group has set up a dedicated department 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
Group reviews the recovery of each single receivable on each balance sheet date to
ensure that sufficient provision for bad debts is made for the unrecoverable amount.Therefore the Group's management believes that the Group's credit risk has been
greatly reduced.The Group's working capital is deposited in banks with a high credit rating so the credit
risk of working capital is low.The Group 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 Group has no other major credit concentration risks. For the financial assets of the
Group 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 Group is unable to fulfill its financial obligations on
the due date. The Group manages liquidity risk by ensuring that there is sufficient
liquidity to fulfil debt obligations without causing unacceptable loss or damage to the
315Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Group's reputation. In order to mitigate the liquidity risk the Group's management has
carried out a detailed inspection on the liquidity of the Group including the maturity of
accounts payable and other payables bank credit lines and bond financing. The
conclusion is that the Group 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 Group
based on the maturity period of the undiscounted remaining contractual
obligations is as follows:
316Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Amount as of December 31 2025:
Item Within one year One to two years Two to five years Over five years Total
Financial assets
Monetary funds 6313941885.05 6313941885.05
Trading financial assets 202027000.00 202027000.00
Notes receivable 77316985.56 77316985.56
Accounts receivable 1086929012.15 1086929012.15
Other receivables 942267792.91 942267792.91
Other current assets 235601218.08 235601218.08
Financial liabilities
Short-term borrowings 4575915552.66 4575915552.66
Notes payable 943817767.91 943817767.91
Accounts payable 1977736371.29 1977736371.29
Other payables 6565100788.16 6565100788.16
Employee benefits payable 223175513.10 223175513.10
Non-current liabilities maturing
within one year 3650840615.21 3650840615.21
Long-term borrowings 320500000.19 5565093239.69 652333497.66 6537926737.54
Bonds payable 396674876.37 1200000000.00 1596674876.37
Long-term payables 2033227.02 2033227.02
317Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
2. Sensitivity analysis
The Group adopts sensitivity analysis technology to analyze the possible impact of
reasonable and possible changes of risk variables on current gains/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
gains/losses and equity after tax is as follows:
Year 2025 Year 2024
Item Exchange rate Impact on Impact onfluctuations Impact on net
profit shareholders' Impact on net profit shareholders'equity equity
USD Appreciation of 1%against RMB 12279535.69 8479654.71 13038269.46 9355341.19
USD Depreciation of 1%
-
against RMB -8479654.71 -13038269.46 -9355341.1912279535.69
(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 gains/losses
and equity after tax is as follows:
Year 2025 Year 2024
Interest
Item rate Impact on net Impact on Impact on net Impact on
fluctuations profit shareholders' equity profit shareholders'equity
Borrowings at increase by -17310240.92 -16968636.09 -21670117.43 -21331876.38
318Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Year 2025 Year 2024
Interest
Item rate Impact on net Impact on Impact on net Impact on
fluctuations profit shareholders' equity profit shareholders'equity
floating interest 0.5%
rates
Borrowings at reduce by
floating interest 17310240.92 16968636.09 21670117.43 21331876.38
rates 0.5%
XII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Closing fair value
Item Level-1 fair value Level-2 fair value Level-3 fair value
measurement measurement measurement Total
I. Continuous fair value
measurement — — — —
(I) Trading financial assets 202027000.00 202027000.00
1. Financial assets
measured at fair value 202027000.00 202027000.00
through current profit or loss
(II) Receivables financing 155957556.43 155957556.43
(III) Other debt investments
(IV) Other equity instrument
investments 10213810.20 10213810.20
(V) Investment properties
(VI) Other non-current
financial assets 1161781213.03 1161781213.03
Total assets continuously
measured at fair value 202027000.00 155957556.43 1171995023.23 1529979579.66
Total liabilities
continuously measured at
fair value
II. Non-continuous fair
value measurement — — — —
Total assets not
continuously measured at
fair value
Total liabilities not
continuously measured at
fair value
2. Basis for determining the market price of projects continuously and non-
continuously measured at Level-1 fair value
The Level-1 input is an unadjusted quoted price in an active market for the same assets or
liabilities available on the measurement date.
319Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
3. Qualitative and quantitative data on valuation techniques and important
parameters adopted for projects continuously and non-continuously measured at
Level-2 fair value
Level-2 input value is the directly or indirectly observable input value of the relevant assets
or liabilities except for the Level-1 input value.
4. Qualitative and quantitative data on valuation techniques and important
parameters adopted for projects continuously and non-continuously measured at
Level-3 fair value
The Level-3 inputs are the unobservable inputs of related assets or liabilities.
5. For items continuously measured at fair value if there is a conversion between
levels in the current year the reasons for the conversion and the policy for
determining the conversion time point
For the Group's items continuously measured at fair value there was no conversion
between levels in the current year.
6. Changes in valuation techniques in the current year and reasons for such
changes
For the items measured at fair value of the Group there were no changes in valuation
techniques in the current year.XIII. Related parties and related party transactions
1. Related party relationships
(1) Parent company of the Company
Shareholding Voting rightpercentage of
Name of the parent Place of Nature of Registered percentage of
company Registration Business capital the parent
the parent
company in the company in
Company (%) the Company(%)
Panshi Runchuang
(Shenzhen) Consulting
Information Shenzhen services and
Management Co. enterprise
RMB 11.71 billion 29.999997 29.999997
Ltd. management
On April 29 2025 the Company received a notice from its former controlling shareholder
Overseas Chinese Town Group Co. Ltd.: To advance the professional integration among
central state-owned enterprises and optimize resource allocation Overseas Chinese Town
Group and its persons acting in concert (including Shenzhen Overseas Chinese Town
Capital Investment Management Co. Ltd. and Jialong Investment Co. Ltd. wholly-owned
subsidiaries of Overseas Chinese Town Group) respectively signed the Unconditional
320Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Share Transfer Agreement in Respect of Konka Group Co. Ltd. with Panshi Runchuang
and Hemao Co. Ltd. It was planned to gratuitously transfer all shares of the Company
held by Overseas Chinese Town Group and its persons acting in concert to Panshi
Runchuang and Hemao Co. Ltd. wholly-owned subsidiaries under China Resources. As
of July 2025 the gratuitous share transfer has been fully completed. The controlling
shareholder of the Company has been changed to Panshi Runchuang the actual
controller of the Company is China Resources Co. Ltd. and the ultimate actual controller
is the State-owned Assets Supervision and Administration Commission of the State
Council.
(2) Subsidiaries of the Company
Please refer to Note IX.1.(1) Subsidiaries for the information of subsidiaries.
(3) Associates of the Company
For details of the Company's important joint ventures or associates please refer to Note
IX.2.(1) Important joint ventures or associates.Joint ventures and associates involved in the related-party transactions with the Company
in the current year or leading to balance due to the related-party transactions they had
with the Company in previous periods:
Name of associates Relationship with the Company
Kangkong Venture Capital (Shenzhen) Co. Ltd. Associate
Nanjing Zhihuiguang Information Technology Research Institute Co. Associate
Ltd.Feidi Technology (Shenzhen) Co. Ltd. Associate
Foshan Zhujiang Media Creative Park Cultural Development Co. Associate
Ltd.Kangkai Technology Service (Chengdu) Co. Ltd. Associate
Puchuang Jiakang Technology Co. Ltd. Associate
Shenzhen Jielunte Technology Co. Ltd. Associate
Orient Excellent (Zhuhai) Asset Management Co. Ltd. Associate
Tongxiang Wuzhen Kunyu Venture Capital Co. Ltd. Associate
Shenzhen RF-Link Technology Co. Ltd. Associate
Anhui Kaikai Shijie E-commerce Co. Ltd. Associate
Shaanxi Silk Road Yunqi Intelligent Technology Co. Ltd. Associate
Shenzhen Kanghongxing Intelligent Technology Co. Ltd. Associate
Shenzhen Zhongkang Beidou Technology Co. Ltd. Associate
Shenzhen Yaode Technology Co. Ltd. Associate
321Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Name of associates Relationship with the Company
Nantong Konka Technology Industrial Park Operation Management Associate
Co. Ltd.Chuzhou Kangxin Health Industry Development Co. Ltd. Associate
Dongguan Guankang Yuhong Investment Co. Ltd. Associate
Shenzhen Morsemi Semiconductor Technology Co. Ltd. Associate
Yantai Kangyun Industrial Development Co. Ltd. Associate
E3 (Hainan) Technology Co. Ltd. Associate
Shenzhen Konka Jiapin Intelligent Electrical Apparatus Technology Associate
Co. Ltd.Shenzhen Konka E-display Intelligent Technology Co. Ltd. Associate
Chongqing Yuanlv Benpao Real Estate Co. Ltd. Associate
Shenzhen Kangpeng Digital Technology Co. Ltd. Associate
Yantai Kangtang Construction Development Co. Ltd. Associate
Dongguan Kangzhihui Electronics Co. Ltd. Associate
Beijing Kangjia Jingyuan Technology Co. Ltd. Associate
Shenzhen Kangxi Technology Innovation Development Co. Ltd. Associate
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. Associate
Guangdong Kangyuan Semiconductor Co. Ltd. Associate
Chongqing Kangjian Photoelectric Technology Co. Ltd. Associate
Anhui Kangta Supply Chain Management Co. Ltd. Associate
Wuhan Kangtang Information Technology Co. Ltd. Associate
Sichuan Chengrui Real Estate Co. Ltd. Associate
Hefei Kangxinwei Storage Technology Co. Ltd. Associate
Sichuan Hongxinchen Real Estate Development Co. Ltd. Associate
Chongqing Lanlv Moma Real Estate Development Co. Ltd. Associate
Yantai Kangyue Investment Co. Ltd. Associate
Yikang Technology Co. Ltd. Associate
Dongguan Kangjia New Material Technology Co. Ltd. Associate
Zhejiang Kangying Semiconductor Technology Co. Ltd. Associate
Kangshengjia Smart Energy (Zhejiang) Co. Ltd. Associate
Konka Huanjia Environmental Protection Technology Co. Ltd. Associate
(4) Other related parties
Name of other related parties Relationship with the Company
Chuzhou Hanshang Electric Appliance Co. Ltd. Minority shareholder of subsidiary
322Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Name of other related parties Relationship with the Company
Hande Group Co. Ltd. Minority shareholder of subsidiary
Jiangsu Han Electric Appliance Co. Ltd. Minority shareholder of subsidiary
HOHO ELECTRICAL & FURNITURE CO Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment Co. Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Guizhou Jiading Mining Management Investment Co. Ltd. Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co. Ltd. Minority shareholder of subsidiary
Central SOEs Industrial Investment Fund for Poverty-stricken Area
(Jiangxi) Industrial Investment Fund Partnership (L.P.) Minority shareholder of subsidiary
Chuzhou State-owned Assets Operation Co. Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Guizhou Huajinrun Technology Group Co. Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong Electronics Technology Co. Ltd. Minority shareholder of subsidiary
Liang Ruiling Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co. Ltd. Minority shareholder of subsidiary
Dai Yaojin Minority shareholder of subsidiary
Dai Rongxing Close family member of minority shareholder
Jiangxi Meiji Enterprise Co. Ltd. Companies controlled by the ultimate controllerof minority shareholders of subsidiaries
2. Related party transactions
(1) Related party transactions on purchase and sales of goods rendering and
receipt of services
1) Purchasing goods/receiving services
Related party Content of related- Amount incurred in Amount incurred lastparty transactions the current year year
Chuzhou Hanshang Electric Appliance
Co. Ltd. Purchase of goods 75994082.55 167386472.57
Overseas Chinese Town Holdings
Company and its subsidiaries and Purchase of goods
associates and services
32064372.0178142076.88
Shenzhen Jielunte Technology Co. Ltd.and its subsidiaries and associates Purchase of goods 27838757.55 78398311.31
Korea Electric Group Co. Ltd. and its
subsidiaries Purchase of goods 26040783.50 21852844.87
Shenzhen KONKA E-display Co. Ltd. Purchase of goods
and its subsidiaries and services 12627402.13 10375886.32
Jiangsu Han Electric Appliance Co. Ltd. Purchase of goods 9111898.95 26521440.81
323Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Dongguan Kangjia New Materials
Technology Co. Ltd. Purchase of goods 2505565.46 7136584.98
China Resources (Holdings) Co. Ltd. and Purchase of goods
its subsidiaries and associates and services 1187745.05 -
Shenzhen Konka Jiapin Intelligent
Electrical Apparatus Technology Co. Ltd. Purchase of services 576004.87 4419586.21
Dongguan Kangzhihui Electronics Co.Ltd. Purchase of goods 489548.36 1443620.08
Other related parties Purchase of services 1034604.39 11159587.52
Puchuang Jiakang Technology Co. Ltd. Purchase of goods - 37713014.15
HOHO Electrical & Furniture Co. Purchase of services - 25101.76
Total 189470764.82 444574527.46
2) Sales of goods/provision of labor services
Related party Content of related-party Amount incurred intransactions the current year Amount incurred last year
Chuzhou Hanshang Electric Sales of goods and
Appliance Co. Ltd. provision of labour 420399121.77 448249572.71services
Korea Electric Group Co. Ltd. Sales of goods and
and its subsidiaries provision of labour 99364894.12 48253101.99services
Overseas Chinese Town Sales of goods and
Holdings Company and its provision of labour 25706408.18 66416176.82
subsidiaries and associates services
Zhejiang Kangying Sales of goods and
Semiconductor Technology Co. provision of labour 12675393.09 3618418.09
Ltd. and its subsidiaries services
Shenzhen KONKA E-display Sales of goods and
Co. Ltd. and its subsidiaries provision of labour 8959810.73 56756074.23services
Dongguan Kangzhihui
Electronics Co. Ltd. Sales of goods 1796261.27 5182683.36
Shenzhen Jielunte Technology Sales of goods and
Co. Ltd. and its subsidiaries provision of labour 897808.28 21105047.32
and associates services
Sales of goods and
Subtotal of other related parties provision of labour 8888878.85 15427419.47
services
Total 578688576.29 665008493.99
(2) Related party leases
1) Rental status
Lease income Lease income
Lessee Type of leased assets recognized in the recognized in the
current year previous year
Overseas Chinese Town Holdings
Company and its subsidiaries and Commercial residences and 39311093.50 24830127.03
associates office buildings
324Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Lease income Lease income
Lessee Type of leased assets recognized in the recognized in the
current year previous year
China Resources (Holdings) Co.Ltd. and its subsidiaries and Commercial residences and
associates office buildings
735420.44
Other related parties Commercial residences andoffice buildings 9012892.25 16830914.58
Total 49059406.19 41661041.61
2) Lease situation
Lease expenses Lease expenses
Name of lessor Type of leased assets recognized in the current recognized in the
year previous year
Overseas Chinese Town Holdings Commercial residences
Company and its subsidiaries and office buildings 31275354.32 34642360.06
Dongguan Guankang Yuhong
Investment Co. Ltd. Industrial plant 3555102.86 12091006.44
Total 34830457.18 46733366.50
(3) Related party guarantees
1) As the guarantor
Contracted Actual Whether
Name of the guarantee guarantee the
guaranteed party amount amount Currency
Start date of Expiry date of
guarantee guarantee guarantee
(10000 RMB) (10000 RMB) has beenfulfilled
Bokang Precision 1000.00 1000.00 CNY 2025/4/29 2026/4/17 No
Konka Circuit 10000.00 CNY 2023/7/19 2027/1/31 No
Anhui Tongchuang 2000.00 2000.00 CNY 2025/2/25 2026/2/24 No
Anhui Tongchuang 5000.00 CNY 2025/2/24 2026/2/23 No
Anhui Tongchuang 4000.00 1500.00 CNY 2025/4/21 2026/4/21 No
Konka Xinyun
Semiconductor 12100.00 8225.35 CNY 2024/11/26 2025/8/1 No
Konka Xinyun
Semiconductor 8277.66 1712.50 CNY 2021/7/12 2022/7/11 No
Chongqing Konka 38000.00 12042.10 CNY 2022/12/13 2037/12/13 No
Electronics Technology 50000.00 20000.00 CNY 2024/12/3 2025/7/25 No
Dongguan Konka 80000.00 32841.61 CNY 2021/6/23 2031/5/7 No
Sichuan Konka 4000.00 3400.00 CNY 2023/5/23 2026/4/26 No
Yibin Smart 980.00 980.00 CNY 2025/5/19 2028/5/18 No
Xi'an Kanghong
Technology Industry 30000.00 4000.00 CNY 2023/5/26 2032/12/31 No
Kangjia Hongye
Electronics 19010.00 13845.01 CNY 2024/1/24 2038/11/7 No
325Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Contracted Actual Whether
Name of the guarantee guarantee Start date of Expiry date of the
guaranteed party amount amount Currency guarantee guarantee guarantee
(10000 RMB) (10000 RMB) has beenfulfilled
Ningbo Kanghanrui
Electric Appliances 6000.00 574.74 CNY 2025/5/9 2026/8/9 No
Ningbo Kanghanrui
Electric Appliances 6000.00 2400.00 CNY 2025/7/13 2026/7/12 No
Anhui Konka 10215.95 4751.23 CNY 2021/8/10 2031/7/15 No
Anhui Konka 7000.00 1000.00 CNY 2021/10/29 2026/10/26 No
Anhui Konka 7000.00 1000.00 CNY 2022/10/24 2026/10/26 No
Anhui Konka 5000.00 3860.90 CNY 2023/6/25 2028/6/24 No
Anhui Konka 4000.00 4000.00 CNY 2025/3/6 2026/3/6 No
Econ Technology Co.Ltd. 1498.97 1167.95 CNY 2023/5/22 2024/5/21 No
Econ Technology Co.Ltd. 4388.00 3021.76 CNY 2024/10/24 2025/8/6 No
Econ Technology Co.Ltd. 2248.46 576.87 CNY 2024/9/24 2025/9/23 No
Econ Technology Co.Ltd. 1498.97 1406.54 CNY 2025/1/14 2026/1/13 No
Econ Technology Co.Ltd. 749.49 749.49 CNY 2025/1/17 2026/1/17 No
2) As the secured party
Guarantee Whether
Name of guarantor amount Currency Start date of Expiry date
the
(10000 guarantee of guarantee guarantee
yuan) has beenfulfilled
Jiangxi Konka 13431.31 CNY 2023/6/15 2027/3/8 No
Jiangxi Konka 56.53 CNY 2024/3/7 2027/3/6 No
Jiangxi High Transparent Substrate 38045.57 CNY 2023/6/15 2027/3/19 No
Jiangxi High Transparent Substrate 258.80 CNY 2024/4/28 2030/3/6 No
Jiangxi High Transparent Substrate 234.44 CNY 2024/3/7 2027/3/6 No
Xinfeng Microcrystal 34475.18 CNY 2023/6/15 2025/12/31 No
Xinfeng Microcrystal 1379.77 CNY 2024/3/4 2027/3/3 No
Xingda Hongye 20949.46 CNY 2025/6/19 2029/6/18 No
Konka Venture 1322.54 CNY 2021/12/15 2022/11/5 No
Zhejiang Kangying Semiconductor
Technology Co. Ltd. 25000.00 CNY 2024/12/3 2025/7/25 No
China Resources Co. Ltd. 150000.00 CNY 2025/12/9 2027/1/29 No
326Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Guarantee Whether
Name of guarantor amount Start date of Expiry date
the
(10000 Currency guarantee of guarantee guarantee
yuan) has beenfulfilled
China Resources Co. Ltd. 40000.00 CNY 2025/12/9 2027/3/18 No
China Resources Co. Ltd. 40000.00 CNY 2025/12/9 2027/3/18 No
China Resources Co. Ltd. 41000.00 CNY 2025/12/9 2028/6/23 No
China Resources Co. Ltd. 79000.00 CNY 2025/12/9 2028/7/4 No
Chuzhou State-owned Assets Operation
Co. Ltd. 1045.27 CNY 2021/8/10 2031/7/15 No
Chuzhou State-owned Assets Operation
Co. Ltd. 220.00 CNY 2021/10/29 2026/10/26 No
Chuzhou State-owned Assets Operation
Co. Ltd. 220.00 CNY 2022/10/24 2026/10/26 No
Chuzhou State-owned Assets Operation
Co. Ltd. 849.40 CNY 2023/6/25 2028/6/24 No
Chuzhou State-owned Assets Operation
Co. Ltd. 880.00 CNY 2025/3/6 2026/3/6 No
Wu Guoren 875.00 USD 2019/12/31 2024/12/31 No
Wu Guoren 2022.50 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 840.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 1941.60 USD 2019/12/31 2024/12/31 No
United Fortune Supply Chain Co. Ltd. 1269.10 USD 2021/6/21 2022/12/31 No
United Fortune Supply Chain Co. Ltd. 650.49 USD 2021/6/21 2022/12/31 No
Guizhou Huajinrun Technology Group
Co. Ltd. 381.15 USD 2022/1/1 2025/12/31 No
Guizhou Huajinrun Technology Group
Co. Ltd. 157.50 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong Electronics
Technology Co. Ltd. 241.40 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong Electronics
Technology Co. Ltd. 99.75 USD 2022/1/1 2025/12/31 No
AUJET INDUSTRY LIMITED 3227.63 USD 2021/11/10 2025/12/31 No
AUJET INDUSTRY LIMITED 40.18 USD 2021/11/10 2025/12/31 No
AUJET INDUSTRY LIMITED 1029.00 USD 2020/7/20 2025/12/31 No
Zhu Xinming 12446.00 CNY 2022/10/15 2023/10/14 No
Zhu Xinming 3399.49 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 13249.19 CNY 2023/2/19 2024/2/18 No
Zhu Xinming 6860.00 CNY 2023/3/1 2024/2/28 No
327Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Guarantee Whether
Name of guarantor amount Currency Start date of Expiry date
the
(10000 guarantee of guarantee guarantee
yuan) has beenfulfilled
Zhu Xinming 2330.54 CNY 2023/3/9 2024/3/8 No
Zhu Xinming 2156.00 CNY 2023/4/1 2023/9/30 No
Zhu Xinming 443.45 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/3/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/6/30 2023/12/31 No
Zhu Xinming 443.45 CNY 2023/7/14 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/10/11 2023/12/31 No
Zhu Xinming 149.45 CNY 2023/10/13 2023/12/31 No
Zhu Xinming 44.05 CNY 2023/12/29 2023/12/31 No
Zhu Xinming 490.00 CNY 2023/2/28 2024/2/27 No
Zhu Xinming 5109.05 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 252.63 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 101.77 CNY 2023/1/13 2023/12/31 No
Zhu Xinming 203.63 CNY 2023/4/14 2023/12/31 No
Zhu Xinming 1862.90 CNY 2023/1/1 2023/12/31 No
Zhu Xinming 223.85 CNY 2023/2/17 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/3/8 2023/12/31 No
Zhu Xinming 101.35 CNY 2023/5/19 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/6/8 2023/12/31 No
Zhu Xinming 93.12 CNY 2023/9/8 2023/12/31 No
Zhu Xinming 62.25 CNY 2023/12/7 2023/12/31 No
Zhu Xinming 137.20 CNY 2024/11/1 2026/10/30 No
Hu Zehong 2025/6/19 2029/6/18 No
6467.02 CNY
Liang Ruiling Dai Yaojin 2025/6/19 2026/12/31 No
Sui Yong Rongxin Asset Management
Co. Ltd. 2450.00 CNY 2018/1/1 2025/6/30 No
Sui Yong Rongxin Asset Management
Co. Ltd. 2842.00 CNY 2018/1/1 2025/12/31 No
Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou Huajinrun 735.00 CNY 2022/1/1 2025/12/31 No
Technology Group Co. Ltd. Huaying
328Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Guarantee Whether
Name of guarantor amount Start date of Expiry date
the
(10000 Currency guarantee of guarantee guarantee
yuan) has beenfulfilled
Gaokede Electronic Technology Co.Ltd. and Huaying Gaokelong Electronic
Technology Co. Ltd.Shenzhen Baili Yongxing Technology
Co. Ltd. 2018/1/1 2023/12/31 No
Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou Huajinrun
Technology Group Co. Ltd. Huaying
Gaokede Electronic Technology Co. 2022/1/1 2025/12/31 No
Ltd. and Huaying Gaokelong Electronic 488.37 CNY
Technology Co. Ltd.Shenzhen Baili Yongxing Technology
Co. Ltd. 2018/1/1 2023/12/31 No
Shenzhen Henglongtong Electronic
Technology Co. Ltd. Guizhou Huajinrun
Technology Group Co. Ltd. Huaying
Gaokede Electronic Technology Co. 2022/1/1 2025/12/31 No
Ltd. and Huaying Gaokelong Electronic 552.72 CNY
Technology Co. Ltd.Shenzhen Baili Yongxing Technology
Co. Ltd. 2018/1/1 2023/12/31 No
Chuzhou Hanshang Electric Appliance
Co. Ltd. 3798.96 CNY 2021/5/20 2024/5/19 No
Shenzhen Qianhai Datang Technology
Co. Ltd. 441.00 CNY 2024/11/17 2025/11/16 No
(4) Loans from/to related parties
Related party name Amount (10000RMB) Currency Start date Due date
Borrowing
Panshi Runchuang (Shenzhen) Information
Management Co. Ltd. 217000.00 CNY 2025/8/28 2026/8/28
Chuzhou Hanshang Electric Appliance Co. Ltd. 12862.50 CNY 2025/1/1 2025/12/31
Chuzhou Hanshang Electric Appliance Co. Ltd. 2450.00 CNY 2024/8/3 2025/12/31
Chuzhou Hanshang Electric Appliance Co. Ltd. 980.00 CNY 2025/2/14 2026/2/13
Kangkong Venture Capital (Shenzhen) Co. Ltd. 245.00 CNY 2022/7/21 2026/7/18
Beijing Xuri Shengxing Technology Co. Ltd. 228.67 CNY 2024/12/1 2025/11/30
Total 233766.17
Lending
Dongguan Guankang Yuhong Investment Co.Ltd. 2223.19 CNY 2022/8/6 2025/9/25
329Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Related party name Amount (10000RMB) Currency Start date Due date
Dongguan Guankang Yuhong Investment Co.Ltd. 17376.81 CNY 2022/8/6 2025/9/25
Chuzhou Kangxin Health Industry Development
Co. Ltd. 13288.00 CNY 2022/12/18 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 2000.00 CNY 2022/12/18 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 735.00 CNY 2023/1/5 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 59.45 CNY 2023/1/5 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 1240.03 CNY 2022/12/18 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 16758.00 CNY 2023/3/22 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 1359.26 CNY 2023/3/21 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 109.95 CNY 2023/3/21 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 1344.36 CNY 2023/3/22 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 2080.72 CNY 2023/10/18 2025/12/21
Chuzhou Kangxin Health Industry Development
Co. Ltd. 562.97 CNY 2023/12/22 2025/12/21
Sichuan Chengrui Real Estate Co. Ltd. 14724.50 CNY 2022/1/21 2026/4/15
Yantai Kangyue Investment Co. Ltd. 12852.70 CNY 2020/12/16 2022/11/5
Yantai Kangyun Industrial Development Co. Ltd. 10020.00 CNY 2021/11/23 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 949.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 1394.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 323.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 564.00 CNY 2022/8/25 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 1020.00 CNY 2022/3/17 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 3400.00 CNY 2022/5/23 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 2500.00 CNY 2022/6/1 2026/3/31
Yantai Kangyun Industrial Development Co. Ltd. 2430.00 CNY 2022/11/15 2026/3/31
Chongqing Lanlv Moma Real Estate Development
Co. Ltd. 18843.00 CNY 2020/11/25 2023/11/24
Sichuan Hongxinchen Real Estate Development
Co. Ltd. 19879.55 CNY 2022/9/15 2026/2/27
Econ Technology Co. Ltd. 18315.11 CNY 2023/12/20 2026/12/20
Econ Technology Co. Ltd. 4996.58 CNY 2023/12/21 2026/12/20
330Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Related party name Amount (10000RMB) Currency Start date Due date
Chongqing Liangshan Industrial Investment Co.Ltd. 5000.00 CNY 2024/9/29 2026/9/27
Chongqing Liangshan Industrial Investment Co.Ltd. 5000.00 CNY 2024/9/30 2026/9/27
Total 181349.18
331Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(5) Other related party transactions
1) Transfer of trading financial assets
Related party Content of related-
Transaction
party transactions Quantity (shares) Unit price (RMB) price (RMB10000)
China Resources Asset Transfer of shares held
Management (Shenzhen) in Wuhan Tianyuan 66283973.00 13.80 91471.88
Co. Ltd. Group Co. Ltd.
2) Perpetual bond financing
Content of
Related party related-party Amount
transactions (RMB 10000)
Term
The term is 3+3*N years (where N = 1 2 3... and N
is the number of extensions) meaning the initial
duration is 3 years. Each 3-year period constitutes a
duration cycle. Upon the expiration of the initial
Panshi Runchuang duration it can be extended for another duration
(Shenzhen) Information Perpetual bond 500000.00 cycle with no limit on the number of extensions.Management Co. Ltd. financing Within 20 working days before the expiration of anyduration cycle the Company has the right to choose
to extend for another duration cycle; or choose to
repay the entire principal all accrued but unpaid
interest (including deferred interest) accretions and
other payables (if any).
(Continued)
Interest rate Interest payment date and interestdeferral option Order of repayment
Interest is payable annually. The Company
The annualized interest rate is the one-year shall have the right to defer interest The payment order of the
Loan Prime Rate (LPR) a floating rate. payments and may at its discretion defer principal interest and
Each 12-month period is a floating cycle payment of the interest payable for the accretions (if any) of the
with repricing occurring once per floating current period together with all previously perpetual bond held by
cycle. No interest rate jump-up clause is deferred interest and accrued interest Panshi Runchuang is
stipulated. thereon to the next interest payment date subordinated to thewith no limit on the number of such interest Company's general debts.deferrals.
(6) Remuneration for key management personnel
Project The current year (RMB 10000) Last year (RMB 10000)
Total remuneration 587.40 805.91
332Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
3. Balance of amounts receivable and payable by related parties
(1) Receivables
Ending balance Beginning balance
Related party
Balance Provision for Provision for badbad debts Balance debts
Accounts receivable:
Shenzhen Yaode Technology Co. Ltd. and its 144454581. 144454581. 1477346
subsidiaries 31 31 52.41 147734652.41
HOHO ELECTRICAL & FURNITURE CO. LIMITED 116261899. 109061518. 124609492 07 04.13 93990064.79
Chuzhou Hanshang Electric Appliance Co. Ltd. 98177722.38 2002825.54
4771792
8.47973445.73
Overseas Chinese Town Holdings Company and its 65818264.0 46400209.9 7227697
subsidiaries and associates 4 7 9.60 31123407.93
Shenzhen Kanghongxing Intelligent Technology Co. 38319878.7 38319878.7 3834411
Ltd. 7 7 5.39 38344115.39
Handian Group Co. Ltd. and its subsidiaries and 27943560.3 570048.63 852837.0associates 9 8 17397.88
Anhui Kaikai Shijie E-commerce Co. Ltd. and its 26436604.9
subsidiaries 2 6116465.89
2667741
7.752692954.15
Shandong Kangfei Intelligent Electrical Appliances 4466641.58 4130097.83 4466641.Co. Ltd. 58 4074943.14
Shenzhen KONKA E-display Co. Ltd. and its
subsidiaries 875788.71 388276.97
1367734.
51143334.28
Shenzhen Jielunte Technology Co. Ltd. and its 1321004
subsidiaries and associates 269304.95 5493.82 6.28 269484.95
Subtotal of other related parties 9361800.98 617441.63 9167397.63 674330.10
Total 532386047. 352066838. 486425195 43 54.83 320038130.75
Financing accounts receivable/Notes receivable:
Korea Electric Group Co. Ltd. and its subsidiaries 3209127.25
Chuzhou Hanshang Electric Appliance Co. Ltd. 320000.00
Total 3209127.25 320000.00
Other receivables:
Konka Huanjia Environmental Protection 174473643 174473643 1744736
Technology Co. Ltd. 4.49 4.49 434.49 1744736434.49
Chuzhou Kangxin Health Industry Development Co. 460482883. 341564138. 4284133
Ltd. 84 02 83.27
Yantai Kangyun Industry Development Co. Ltd. and 293164911. 200813312. 2748338
its subsidiaries 17 70 00.04
Sichuan Hongxinchen Real Estate Development 260445465. 260445465. 2443209
Co. Ltd. 59 59 45.73
Dongguan Guankang Yuhong Investment Co. Ltd. 254964600. 33890711.7 251643432 9 89.20 2200000.00
Chongqing Lanlv Moma Real Estate Development 236698102. 236698102. 2366981
Co. Ltd. 31 31 02.31 17677972.27
Sichuan Chengrui Real Estate Co. Ltd. 189205812. 189205812. 180452969 69 15.47
Yantai Kangyue Investment Co. Ltd. 171069706. 127404906. 171069745 45 06.45 73609697.70
Chongqing Liangshan Industrial Investment Co. Ltd. 102616027. 3026160.28 100858138 50.67 1008581.51
333Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance Beginning balance
Related party
Balance Provision for Balance Provision for badbad debts debts
Dai Rongxing 89251531.4 89251531.4 89251531 1 1.41 89251531.41
Jiangxi Meiji Enterprise Co. Ltd. 84462640.3 84462640.3 93512641 1 0.31 93512640.31
Shenzhen Kanghongxing Intelligent Technology Co. 39130497.1 39130497.1 3913049
Ltd. 7 7 7.17 39044321.62
Overseas Chinese Town Holdings Company and its 28342867.9 22862402.5 3131955
subsidiaries and associates 6 9 0.72 21246621.58
HOHO ELECTRICAL & FURNITURE CO. LIMITED 2466257.96 2466257.96 2522359.24 2522359.24
Zhu Xinming 1844316.15 418475.33 1844316.15 184800.48
Hu Zehong 333084.83 165196.50 816533.42 171132.24
Subtotal of other related parties 4761997.11 184522.25 3840950.86 71393.70
Total 396397713 337672656 38952657.14 7.84 306.91 2085237486.55
Prepayments:
Kangshengjia Smart Energy (Zhejiang) Co. Ltd. 67139571.6 48239428 6.19 67139571.68
Puchuang Jiakang Technology Co. Ltd. 377322.00 377322.00 377322.00
Overseas Chinese Town Holdings Company and its 21424.49 113278.6subsidiaries and associates 0 21424.49
Subtotal of other related parties 491110.16 52339.79 491110.16
Total 68029428.3 48782363 6.58 68029428.33
Other current assets:
Yikang Technology Co. Ltd. and its subsidiaries 235601218. 233116908 49.03 235601218.08
Total 235601218. 233116908 49.03 235601218.08
Contract assets:
Overseas Chinese Town Holdings Company and its 401807.8
subsidiaries and associates 963764.77 51725.07 4 8196.88
Total 963764.77 51725.07 401807.84 8196.88
(2) Payables
Related party Ending book Beginning bookbalance balance
Accounts payable:
Overseas Chinese Town Holdings Company and its subsidiaries and associates 43601700.08 42040127.95
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries and associates 13297141.47 65368676.00
HOHO ELECTRICAL & FURNITURE CO. LIMITED 4510072.62 5036570.10
Anhui Kaikai Shijie E-commerce Co. Ltd. and its subsidiaries 4326148.17 4326148.17
Handian Group Co. Ltd. and its subsidiaries and associates 4309351.22 4189576.68
334Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Related party Ending book Beginning bookbalance balance
Chuzhou Hanshang Electric Appliance Co. Ltd. 4253835.32 8399596.80
Dongguan Guankang Yuhong Investment Co. Ltd. 2783842.00 7783842.00
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 1245087.25 11078987.35
Subtotal of other related parties 1984392.70 22555598.64
Total 80311570.83 170779123.69
Notes payable:
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries and associates 13596541.72 10327556.31
Handian Group Co. Ltd. and its subsidiaries and associates 4689383.18 1565908.77
Dongguan Kangjia New Materials Technology Co. Ltd. 918483.35 1991363.46
Shenzhen Konka Jiapin Intelligent Electrical Apparatus Technology Co. Ltd. 807859.00
Total 20012267.25 13884828.54
Contract liabilities/other current liabilities/other non-current liabilities:
Overseas Chinese Town Holdings Company and its subsidiaries and associates 53849339.85 65821382.94
Shenzhen Konka Jiapin Intelligent Electrical Apparatus Technology Co. Ltd. 8417949.44 4449842.05
AUJET INDUSTRY LIMITED 3983759.72 3851376.79
Zhejiang Kangying Semiconductor Technology Co. Ltd. and its subsidiaries 1604546.07 22446.94
Chongqing Kangyiqing Technology Co. Ltd. 206882.30 146882.30
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 153017.09 915488.73
Subtotal of other related parties 135288.55 332100.74
Total 68350783.02 75539520.49
Other payables:
China Resources Company Limited and its subsidiaries and associates 2193246343.33
Chuzhou Hanshang Electric Appliance Co. Ltd. 208390348.31 207983241.15
Overseas Chinese Town Holdings Company and its subsidiaries and associates 28045215.53 22391131.89
Guizhou Jiading Mining Management Investment Co. Ltd. 18000000.00 18000000.00
Dongguan Guankang Yuhong Investment Co. Ltd. 15655996.80 12100893.94
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 5147213.00 1000000.00
Konka Huanjia Environmental Protection Technology Co. Ltd. 4353280.41 5104349.30
Yantai Kangtang Construction Development Co. Ltd. 3000000.00
Beijing Xuri Shengxing Technology Co. Ltd. 2814638.40 2675533.68
Kangkong Venture Capital (Shenzhen) Co. Ltd. 2523500.00 2523701.42
335Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Related party Ending book Beginning bookbalance balance
Yikang Technology Co. Ltd. and its subsidiaries 355586.25 21696728.31
Central SOEs Industrial Investment Fund for Poverty-stricken Area (Jiangxi)
Industrial Investment Fund Partnership (L.P.) 14400000.00
Subtotal of other related parties 9065998.82 10446793.62
Total 2490598120.85 318322373.31
Advances from customers:
China Resources Company Limited and its subsidiaries and associates 61285.03 61285.03
Total 61285.03 61285.03
XIV. Commitments and contingencies
1. Important commitments
(1) Capital commitments
Item Ending balance Beginning balance
Contract signed but hasn't been recognized in financial
statements
Commitment to purchase and construct long-term assets 137000000.00
Large-scale outsourcing contract 85942612.22 173593973.84
Foreign investment commitments
Total 222942612.22 173593973.84
(2) Other commitments
As of December 31 2025 there were no other significant commitments for the Group to
disclose.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) A dispute over an international contract for the sale of goods between Micro Crystal
Transfer Group Ltd. (plaintiff) and Chongqing Optoelectronic Technology Co. Ltd. a
subsidiary of the Company (defendant) involving a disputed amount of RMB36396700.As of the date of issuance of this report the case was under trial.
(2) A dispute over a construction contract between Shenzhen Sansen Decoration Group
Co. Ltd. (plaintiff) and Shenzhen Konka Semiconductor a subsidiary of the Company
(defendant) and Chongqing Konka a subsidiary of the Company (defendant) involving a
subject matter amount of RMB 25607300. As of the date of issuance of this report the
case was under trial.
(3) A dispute over a sales and purchase contract between Jiujiang Baoyong Gas Co. Ltd.
(plaintiff) and Jiangxi High-transparency Substrate a subsidiary of the Company
336Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
(defendant) involving a subject matter amount of RMB 91227800. As of the date of
issuance of this report the case was in execution.
(4) A dispute over a construction project contract between Nantong Construction Group
Co. Ltd. (Plaintiff) and Haimen Ronghui Real Estate Co. Ltd. (Defendant) Shanghai
Rongzhen Enterprise Management Co. Ltd. (Defendant) the Company (Defendant) and
Nantong Konka Technology Industrial Park Operation Management Co. Ltd. (Defendant)
an associated entity of the Company involving a disputed amount of RMB 99000000. As
of the date of issuance of this report the case was under trial.
(5) A dispute over a construction contract between Sichuan Yisheng Construction Group
Co. Ltd. (plaintiff) and Yibin Konka Industrial Park a subsidiary of the Company
(defendant) involving a subject matter amount of RMB 28061000. As of the date of
issuance of this report the case was under trial.
(6) A dispute over a contract between Shenzhen Oriental Venture Capital Co. Ltd.
(plaintiff) and the Company (defendant) involving a subject matter amount of RMB
752147500. The Company won both the first-instance and second-instance trials. The
plaintiff has filed an application for retrial. As of the date hereof the case is under retrial
review.
(7) In 2018 to support the financing of Donggang Kangrun Environmental Treatment Co.
Ltd. (hereinafter referred to as “Donggang Kangrun”) a subsidiary controlled by Yikang
Konka issued a support letter to China Construction Bank Corporation Donggang Sub-
branch (hereinafter referred to as “CCB Donggang Sub-branch”). The main contents areas follows: “Donggang Kangrun is a subsidiary of our company and the project company ofthe Donggang Urban Inland River Comprehensive Treatment PPP Project (hereinafter
referred to as the ‘Project’). Our company attaches great importance to the Project.Therefore Donggang Kangrun intends to apply to your bank for a project loan of RMB 975
million to support the fund operation of the Project. In addition to the applied loan our
company will use self-raised funds and other financing channels to support the Project to
ensure its smooth progress and guarantee that Donggang Kangrun will repay the loanfrom your bank in full when due”. As of December 31 2026 the outstanding principal
balance of loans borrowed by Donggang Kangrun from CCB Donggang Sub-branch
amounted to RMB 852000000.
(8) In 2019 to support the financing of Weifang Sihai Kangrun Investment and Operation
Co. Ltd. (hereinafter referred to as "Weifang Kangrun") a controlling subsidiary of Econ
Konka issued two letters of support to the Weifang Branch of Industrial Bank Co. Ltd.(hereinafter referred to as "CIB Weifang Branch"). The main contents were respectively:
"Our company will use self-raised funds and other financing channels to support the
337Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Weifang Binhai Economic Development Zone Central Urban Area Comprehensive
Improvement Project to ensure the smooth progress of the project and at the same time
ensure that Weifang Kangrun can repay your bank's loan in full on the due date" and "Our
company will use self-raised funds to support the Weifang Binhai Economic and
Technological Development Zone Central Urban Area Comprehensive Improvement
Project and ensure that the project capital of Weifang Kangrun is in place on time and in
full". As of December 31 2025 the outstanding loan balance (principal) of Weifang
Kangrun to CIB Weifang Branch was RMB 595114700.XV. Subsequent events after the balance sheet date
1. Important non-adjusting matters
As of the date of issuance of this financial report the significant non-adjusting events that
the Group needs to disclose are as follows:
A case concerning a dispute over a construction contract between Longxin Construction
Group Co. Ltd. (plaintiff) and Nantong Kanghai (defendant) involving a subject matter
amount of RMB 80000000.00. As of the date of issuance of this report the case was
under trial.
2. Sales return
As of the date of this financial report the Group had no material sales returns.
3. Notes to other subsequent events after the balance sheet date
As of the date of issuance of this financial report the Group has no other events after the
balance sheet date.XVI. Other key matters
1. Correction of previous errors and impact
(1) Retrospective restatement method
1) Reasons for correction of accounting errors
After self-inspection for the failure to consider the agreed matters of some equity transfer
projects and the underprovision of patent royalties and bad debt provisions for accounts
receivable of specific customers in previous years the Group corrected the related errors
as detailed below:
* In the process of auditing and preparing the 2025 annual report after careful verification
when introducing strategic investors for Ypfun in 2021 the Group signed supplementary
agreements with 11 investors promising that if Ypfun failed to complete its IPO before the
agreed time the Group would be obliged to repurchase their transferred equity at the
original transfer price and pay interest. The above-mentioned agreed matters did not go
through the approval procedures of the Company's Board of Directors and the General
338Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Meeting and were not subjected to appropriate accounting treatment and information
disclosure. Based on this contractual obligation and the facts currently known the
Company's management recognized this obligation as a financial liability and corrected
previous accounting errors.* When our company transferred the equity of Anhui Kaikai Vision E-commerce Co. Ltd.(hereinafter referred to as "Kaikai Vision") in previous years it signed a shareholder
agreement with Alibaba (China) Technology Co. Ltd. (hereinafter referred to as "Alibaba").Under the agreement the company undertook the obligation to repurchase the equity and
pay interest if the IPO of Kaikai Vision was not completed within the agreed time limit.Ultimately Kaikai Vision failed to complete its IPO and listing as scheduled. The aforesaid
shareholder agreement was not reviewed and approved by the company's General
Manager's Office Meeting and Party Committee Office Meeting nor was appropriate
accounting treatment and information disclosure conducted. Based on the contractual
obligations and currently available facts the company's management recognized such
payment obligations as financial liabilities and carried out prior period error corrections.The company has fulfilled the equity repurchase obligation and paid the relevant interest in
November 2025.* The color TV products operated and sold by the Group adopt essential patents
complying with industry standards. Through self-inspection the Company has confirmed
discrepancies in the previously paid data. The Group shall accrue the relevant patent
royalties retroactively for prior years and make corrections to prior period errors.* Accounts receivable of specific customers of the Group were overdue and uncollected.After careful verification the overdue and uncollected accounts receivable of such
customers were caused by the inability of related underlying customers to repay. Individual
bad debt provision should be made in the year when the related underlying customers lose
their repayment ability and previous accounting errors should be corrected.
2) Processing procedure
On April 27 2026 the Group held the 11th Meeting of the 11th Board of Directors to
review and approve the Proposal on Correction of Previous Accounting Errors and
Retrospective Adjustments specifying that the Company should correct the previous
accounting errors in accordance with the Accounting Standard for Business Enterprises
No. 28 - Changes in Accounting Policies and Accounting Estimates and Correction of
Errors and the Rules for the Compilation of Information Disclosure by Companies Offering
Securities to the Public No. 19 - Correction of Financial Information and Related
Disclosures.
3) Impact of correction of previous accounting errors on financial statements
339Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Names of statement items affected in comparative periods Cumulative impact
Accounts receivable -143700409.78
Long-term equity investments 1193140574.00
Other payables 1826641494.04
Undistributed profits -777201329.82
Cost of sales 235788807.29
Finance costs 324752686.75
Credit impairment loss -143700409.78
Asset impairment loss -72959426.00
XVII. Notes to the main items of the financial statements of the parent company
1. Accounts receivable
(1) Accounts receivable aged analysis
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 2518870996.93 2478867657.14
1-2 years 936172219.27 269445994.78
2-3 years 71304189.74 25878752.19
3-4 years 25395465.05 42081276.61
4-5 years 42024672.61 10744497.16
Over 5 years 857898045.25 848569108.69
Total 4451665588.85 3675587286.57
(2) Accounts receivable classified and listed by provision methods for bad debts
Ending balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision for bad debts
by single item 750993030.62 16.87 750932742.61 99.99 60288.01
Provision for bad debts
by portfolio
Of which: Aging
portfolio 243003431.27 5.46 154701363.19 63.66 88302068.08
Related party portfolio 3457669126.96 77.67 3457669126.96
Subtotal of portfolio 3700672558.23 83.13 154701363.19 4.18 3545971195.04
Total 4451665588.85 100.00 905634105.80 20.34 3546031483.05
(Continued)
340Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Beginning balance
Balance Provision for bad debts
Category
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision for bad debts
by single item 751101547.52 20.43 751041259.51 99.99 60288.01
Provision for bad debts
by portfolio
Of which: Aging
portfolio 262862169.32 7.15 141146416.75 53.70 121715752.57
Related party portfolio 2661623569.73 72.41 2661623569.73
Subtotal of portfolio 2924485739.05 79.57 141146416.75 4.83 2783339322.30
Total 3675587286.57 100.00 892187676.26 24.27 2783399610.31
1) Provision for bad debts of accounts receivable made by individual item
Beginning balance Ending balance
Name Provision for Provision for ProvisionBalance Reasons for thebad debts Balance bad debts percentage(%) provision
CEFC Shanghai 2982805 298280558.International Not expected to298855950.30 298855950.30 100.00
Group Limited 58.37 37 be recoverable
Hongtu
Sanpower 2000000 200000000. Not expected to
Technology Co. 200000000.00 200000000.00 100.0000.00 00 be recoverable
Ltd.Zhongfu
Tiangong 7128909 71289096.6 Not expected to
Construction 71289096.65 71289096.65 100.006.65 5 be recoverable
Group Co. Ltd.CCCC First
Harbor 5543810 55438105.0 Not expected to
Engineering 55438105.00 55438105.00 100.005.00 0 be recoverable
Company Ltd.China Energy
(Shanghai) 4999356 49993564.1 Not expected to
Industrial Co. 49993564.16 49993564.16 100.004.16 6 be recoverable
Ltd.Shenzhen
Kanghongxing 3621105 36211057.5
Intelligent Not expected to36211057.55 36211057.55 100.00
Technology Co. 7.55 5 be recoverable
Ltd.
397806439720360.8
Others Expected to be39313773.86 39253485.85 99.85
8.89 8 difficult to recover
7509930750932742.
Total 751101547.52 751041259.51 99.99 —
30.6261
341Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
2) Provision for bad debts for accounts receivable made as per portfolio
* In the portfolio accounts receivable of provision for expected credit loss made by aging
Ending balance
Aging
Balance Provision for bad debts Provision percentage(%)
Within 1 year 87122029.63 1777289.39 2.04
1-2 years 3182303.05 318866.77 10.02
2-3 years 50794.29 11525.22 22.69
3-4 years 155531.00 100908.51 64.88
4-5 years 41109210.00 41109210.00 100.00
Over 5 years 111383563.30 111383563.30 100.00
Total 243003431.27 154701363.19 63.66
* In the portfolio accounts receivable of provision for expected credit loss made by other
methods
Ending balance
Aging
Balance Provision for bad Provision percentagedebts (%)
Related party portfolio 3457669126.96
Total 3457669126.96
(3) Provision for bad debts of accounts receivable set aside recovered or reversed
in the current year
Change in the current year
Category Beginning balance
Provision Recovered orreversed
Provision for bad debts of
accounts receivable 892187676.26 15735211.50 2288781.96
Total 892187676.26 15735211.50 2288781.96
(Continued)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of
accounts receivable 905634105.80
Total 905634105.80
(4) Accounts receivable actually written off in the current year
There are no accounts receivable actually written off in the current year.
(5) Top five accounts receivable and contract assets in the ending balance
342Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
categorized by debtors
The total amount of the top five accounts receivable in the year-end balance categorized
by debtor in the current year was RMB 3309486768.65 accounting for 74.34% of the
total year-end balance of accounts receivable. The corresponding total year-end balance
of provision for bad debts was RMB 298280558.37.
2. Other receivables
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 394828312.64 397729468.60
Other receivables 6169721184.70 7812366963.81
Total 6564549497.34 8210096432.41
2.1 Dividends receivable
Investee Ending balance Beginning balance
Hong Kong Konka Co. Ltd. 114828312.64 117729468.60
Suining Konka Industrial Park Development
Co. Ltd. 280000000.00 280000000.00
Total 394828312.64 397729468.60
2.2 Other receivables
(1) Classified by account nature
Nature of funds Ending book balance Beginning book balance
Receivables from subsidiaries 7338448596.60 7470528350.51
Energy-saving subsidies receivable 141549150.00 141549150.00
Receivables from other related parties 3643705051.48 2217059558.78
Deposits guarantees and down payments 11316782.23 11203961.90
Others 54245272.51 51145919.15
Total 11189264852.82 9891486940.34
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 2468208504.58 2833825882.55
1-2 years 1821365482.14 2791206932.00
2-3 years 2712875647.73 2093828942.23
3-4 years 2087164066.22 198020662.24
4-5 years 193527410.48 438628738.59
Over 5 years 1906123741.67 1535975782.73
343Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Aging Ending book balance Beginning book balance
Total 11189264852.82 9891486940.34
(3) Classified presentation of other receivables by provisioning methods of bad
debts
Ending balance
Balance Provision for bad debts
Category
Amount Percentage
Provision Book value
(%) Amount percentage(%)
Provision for bad debts
by single item 5578850648.69 49.86 4974026480.15 89.16 604824168.54
Provision for bad debts
by portfolio
Of which: Aging portfolio 39006591.44 0.35 36740977.75 94.19 2265613.69
Low-risk portfolio 14968292.40 0.13 8776210.22 58.63 6192082.18
Related party portfolio 5556439320.29 49.66 5556439320.29
Subtotal of portfolio 5610414204.13 50.14 45517187.97 0.81 5564897016.16
Total 11189264852.82 100.00 5019543668.12 44.86 6169721184.70
(Continued)
Beginning balance
Balance Provision for bad debts
Category
Amount Percentage
Provision Book value
(%) Amount percentage(%)
Provision for bad debts by
single item 2346639698.77 23.72 2030143279.98 86.51 316496418.79
Provision for bad debts by
portfolio
Of which: Aging portfolio 59556884.46 0.60 41789999.23 70.17 17766885.23
Low-risk portfolio 14762006.60 0.15 7186697.32 48.68 7575309.28
Related party portfolio 7470528350.51 75.52 7470528350.51
Subtotal of portfolio 7544847241.57 76.28 48976696.55 0.65 7495870545.02
Total 9891486940.34 100.00 2079119976.53 21.02 7812366963.81
1) Provision set aside for bad debts of other receivables by portfolio
Ending balance
Aging
Balance Provision for bad Provision percentagedebts (%)
Within 1 year 945505547.22 39758.91
344Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Ending balance
Aging
Balance Provision for bad Provision percentagedebts (%)
1-2 years 1393107700.92 73168.69 0.01
2-3 years 1186533466.90 79012.10 0.01
3-4 years 1982809787.75 1503498.90 0.08
4-5 years 18730683.89 1629384.54 8.70
Over 5 years 83727017.45 42192364.83 50.39
Total 5610414204.13 45517187.97 0.81
345Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
2) Provision set aside for bad debts of other receivables by the general expected
credit loss model
Phase I Phase II Phase III
Provision for bad Expected credit Expected credit Expected credit loss
debts loss for the next loss throughout the throughout the
Total
12 months duration (without duration (with creditcredit loss) impairment)
Balance as of
January 1 2025 97657.39 48879039.16 2030143279.98 2079119976.53
Balance as of
January 1 2025 in
the current year
-- Transfer to Stage II -14896.62 14896.62
-- Transfer to Stage
III -13938000.00 13938000.00
-- Reversal to Stage
II
-- Reversal to Stage I
Provision in the
current year 39758.91 14353567.19 2929945200.17 2944338526.27
Reversal in the
current year 82760.77 3832082.99 3914843.76
Charge-off in the
current year
Write-off in the
current year
Other changes 9.08 9.08
Balance as of
December 31 2025 39758.91 45477429.06 4974026480.15 5019543668.12
Remarks: 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 one
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 one year the loss provision is measured based on the
expected credit losses for the entire duration.The third stage is credit impairment after initial recognition. For other receivables with
credit impairment that have occurred the loss provision is measured according to the
credit losses that have occurred throughout the duration.
(4) Provision for bad debts of other receivables set aside recovered or reversed in
346Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
the current year
Change in the current year
Category Beginning balance
Provision Recovered orreversed
Provision for bad debts of
other receivables 2079119976.53 2944338526.27 3914843.76
Total 2079119976.53 2944338526.27 3914843.76
(Continued)
Change in the current year
Category Ending balance
Written-off Others
Provision for bad debts of other
receivables 9.08 5019543668.12
Total 9.08 5019543668.12
(5) Other receivables actually written off in the current year
No other receivables were actually written off in the current year.
(6) Other receivables with top five year-end balances categorized by debtors
The total amount of the top five other receivables in the year-end balance categorized by
debtors in the current year was RMB 6877609289.97 accounting for 61.47% of the total
year-end balance of other receivables. The corresponding total year-end balance of
provisions for bad debts was RMB 2874590635.73.
347Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
3. Long-term equity investments
Ending balance Beginning balance
Item
Balance Provision forimpairment Book value Balance Provision for impairment Book value
Investment in
subsidiaries 7825224811.83 715180000.00 7110044811.83 7825394811.83 689680000.00 7135714811.83
Investments in
associates and joint 3101020668.93 2264032106.38 836988562.55 3522936610.99 663595371.27 2859341239.72
ventures
Total 10926245480.76 2979212106.38 7947033374.38 11348331422.82 1353275371.27 9995056051.55
(1) Investment in subsidiaries
Provision for Changes in the current year
Investee Beginning balance impairment Ending balance Provision for
Unit (Book value) Beginning Increase in Decrease in Provision for
impairment
(Book value)
balance investment investment impairment
Others Ending balance
Konka Venture 2550000.00 2550000.00
Anhui Konka 122780937.98 122780937.98
Konka Electronic
Material 300000000.00 300000000.00
Konka Unifortune 15300000.00 15300000.00
Dongguan Konka 274783988.91 274783988.91
Konka Europe 3637470.00 3637470.00
Telecommunication
Technology 360000000.00 360000000.00
Development of
science and 100000000.00 100000000.00
technology industry
348Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for Changes in the current year
Investee Beginning balance impairment Ending balance Provision for
Increase in Decrease in Provision for impairmentUnit (Book value) Beginning (Book value)
balance investment investment impairment
Others Ending balance
Anhui Tongchuang 779702612.22 779702612.22
Konka
Communication 30749800.00 30749800.00
Pengrun Technology 25500000.00 25500000.00 25500000.00
Beijing Konka
Electronics 200000000.00 200000000.00
Konka Circuit 740752721.18 4930000.00 745682721.18
Hong Kong Konka 781828.61 781828.61
Konka Investment 500000000.00 500000000.00
Electronics
Technology 1000000000.00 1000000000.00
Shanghai Konka 40000000.00 40000000.00
Jiangxi Konka 689680000.00 689680000.00
Shenzhen Nianhua 30000000.00 30000000.00
Shenzhen Konka
Semiconductor 100000000.00 100000000.00
Ji'an Konka 50000.00 50000.00
Suining Konka
Industrial Park 200000000.00 200000000.00
Kangrong Jiayuan 5100000.00 5100000.00
Suining Electronic
Technology 200000000.00 200000000.00
Innovation
349Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for Changes in the current year
Investee Beginning balance impairment Ending balance Provision for
Increase in Decrease in Provision for impairmentUnit (Book value) Beginning (Book value)
balance investment investment impairment
Others Ending balance
Shenzhen Chuangzhi
Electrical Appliances 10000000.00 10000000.00
Chongqing
Optoelectronic 1400000000.00 1400000000.00
Technology
Xinying
Semiconductor 192520000.00 192520000.00
Ningbo Kanghanrui
Electric Appliances 90000000.00 90000000.00
Suining Jiarun
Property 10000000.00 10000000.00
Yibin Kangrun 67000000.00 67000000.00
Hainan Konka
Technology 9205452.93 9205452.93
Konka Cross-border
(Hebei) 50000000.00 50000000.00
Konka Central China 30000000.00 30000000.00
Guizhou Kanggui
Materials 28000000.00 28000000.00
Nantong Kanghai 15300000.00 15300000.00
Jiangxi Konka
Technology Park 50000000.00 50000000.00
Shangrao Konka
Electronic
Technology 30000000.00 30000000.00
Innovation
350Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Provision for Changes in the current year
Investee Beginning balance impairment Ending balance Provision forimpairment
Unit (Book value) Beginning Increase in Decrease in Provision for (Book value)
balance investment investment impairment
Others Ending balance
Xi'an Kanghong
Technology Industry 12000000.00 12000000.00
Xi'an Konka
Intelligent 50000000.00 50000000.00
Technology
Songyang Konka
Intelligent 30000000.00 30000000.00
Konka North China 30000000.00 30000000.00
Total 7135714811.83 689680000.00 4930000.00 5100000.00 25500000.00 7110044811.83 715180000.00
(2) Investment in associates
Changes in the current year
Provision for
Beginning balance impairment Gains/losses on Adjustments to
Investee
(Book value) Beginning Increase in Decrease investment other
balance investment Investment recognized under comprehensive
the equity method income
Anhui Kaikai Shijie E-commerce Co. Ltd. 39191473.50 49583326.00 -2938902.56 57037.58
Kunshan Kangsheng Investment
Development Co. Ltd. 40891367.28 -5388016.54
Shaanxi Silk Road Yunqi Intelligent
Technology Co. Ltd. 3467934.60 -3315263.80
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd. 5158909.06
Shenzhen Zhongkang Beidou Technology
Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
351Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Beginning balance impairment Gains/losses on Adjustments to
Investee
(Book value) Beginning Increase in Decrease investment other
balance investment Investment recognized under comprehensive
the equity method income
Wuhan Tianyuan Group Co. Ltd. 545842155.57 239447355.00
Chuzhou Konka Technology Industry
Development Co. Ltd.Chuzhou Kangjin Health Industry
Development Co. Ltd. 92285525.83 -32283182.56
Nantong Konka Technology Industrial Park
Operation Management Co. Ltd. 5002208.91 -5002208.91
Chuzhou Kangxin Health Industry
Development Co. Ltd. 6203105.97 -1841318.73
Dongguan Guankang Yuhong Investment
Co. Ltd.Econ Technology Co. Ltd. 714353682.97 278887555.25 -5557305.38
Dongguan Kangjia New Materials Technology
Co. Ltd. 3231195.79 -1323182.99
Chongqing Ypfun Technology Co. Ltd. 1354769939.92 23376100.00 200000000.00
Yantai Kangyun Industrial Development Co.Ltd.E3 (Hainan) Technology Co. Ltd. 4574609.73 8000000.00
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 5896518.07 -3447912.19
Shenzhen Konka E-display Intelligent
Technology Co. Ltd. 24007406.43 3564368.70 -136519.75
Chongqing Yuanlv Benpao Real Estate Co.Ltd.
352Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Provision for
Beginning balance impairment Gains/losses on Adjustments to
Investee
(Book value) Beginning Increase in Decrease investment other
balance investment Investment recognized under comprehensive
the equity method income
Shenzhen Kangpeng Digital Technology Co.Ltd. 1310766.92 -330466.61
Wuhan Kangtang Information Technology
Co. Ltd. 15853661.78 -14876432.16
Sichuan Chengrui Real Estate Co. Ltd.Sichuan Hongxinchen Real Estate
Development Co. Ltd. 2459686.45
Shenzhen Kangyue Industrial Co. Ltd. 230011.61
Konka Huanjia Environmental Protection
Technology Co. Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co.Ltd. 1000000.00 2643.86
Total 2859341239.72 663595371.27 201000000.00 247，447355.00 -72737179.87 -79482.17
(Continued)
Changes in the current year
Cash dividends Ending balance Provision for
Investee Changes in or profits Provision for impairment(Book value)
other equity declared to be impairment Others Ending balance
distributed
Anhui Kaikai Shijie E-commerce Co. Ltd. 36309608.52 85892934.52
Kunshan Kangsheng Investment
Development Co. Ltd. 35503350.74
Shaanxi Silk Road Yunqi Intelligent 152670.80
353Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Cash dividends Ending balance Provision for
Investee Changes in or profits Provision for impairment(Book value)
other equity declared to be impairment Others Ending balance
distributed
Technology Co. Ltd.Shenzhen Kanghongxing Intelligent
Technology Co. Ltd. 5158909.06
Shenzhen Zhongkang Beidou Technology
Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Group Co. Ltd. 8618395.70 -297776404.87
Chuzhou Konka Technology Industry
Development Co. Ltd.Chuzhou Kangjin Health Industry
Development Co. Ltd. 60002343.27
Nantong Konka Technology Industrial Park
Operation Management Co. Ltd.Chuzhou Kangxin Health Industry
Development Co. Ltd. 4361787.24 4361787.24
Dongguan Guankang Yuhong Investment
Co. Ltd.Econ Technology Co. Ltd. 326506.69 708469870.90 279214061.94
Dongguan Kangjia New Materials Technology
Co. Ltd. 1908012.80 1908012.80
Chongqing Ypfun Technology Co. Ltd. 301193.49 1555071133.41 1578447233.41
Yantai Kangyun Industrial Development Co.Ltd.
354Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Changes in the current year
Cash dividends Ending balance Provision for
Investee Changes in or profits Provision for impairment(Book value)
other equity declared to be impairment Others Ending balance
distributed
E3 (Hainan) Technology Co. Ltd. 3425390.27
Shenzhen Konka Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 2448605.88
Shenzhen Konka E-display Intelligent
Technology Co. Ltd. 27435255.38
Chongqing Yuanlv Benpao Real Estate Co.Ltd.Shenzhen Kangpeng Digital Technology Co.Ltd. 980300.31
Wuhan Kangtang Information Technology
Co. Ltd. 977229.62
Sichuan Chengrui Real Estate Co. Ltd.Sichuan Hongxinchen Real Estate
Development Co. Ltd. 2459686.45 2459686.45
Shenzhen Kangyue Industrial Co. Ltd. 230011.61
Konka Huanjia Environmental Protection
Technology Co. Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co.Ltd. 16291.79 1018935.65
Total 301193.49 8618395.70 1600436735.11 294334722.81 836988562.55 2264032106.38
355Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
4. Operating revenue and cost of sales
(1) Operating revenue and cost of sales
Amount incurred in the current year Amount incurred last year
Item
Income Cost Income Cost
Principal
activity 1354862479.09 1382585906.19 1773409740.83 1908349581.90
Other 132961429.47 63913533.56 134714183.27 66145019.39
Total 1487823908.56 1446499439.75 1908123924.10 1974494601.29
(2) Information in relation to the transaction price apportioned to the residual
contract performance obligation
At the end of the current year the amount of revenue corresponding to the performance
obligations for which contracts have been signed but have not yet been performed or have
not yet been fully performed is RMB 25285546.17 which is expected to be recognized as
revenue in 2026.
5. Investment income
Item Amount incurred in the Amount incurred lastcurrent year year
Long-term equity investment income calculated by the cost
method
Returns on long-term equity investments calculated by the
equity method -72737179.87 -29330307.37
Return on investment arising from the disposal of long-term
equity investments 7970560.10 78445940.06
Investment income from financial assets held for trading
during the holding period 420553.86 4240444.62
Investment income from disposal of financial assets held for
trading -1807577.63 -26511417.25
Gains from remeasurement of residual equity at fair value
after losing control
Interest income from debt investments during the holding
period 5360451.37 5688905.13
Income from the derecognition of financial assets at amortized
cost -226103.98 -1332512.07
Conversion of long-term equity investments accounted for by
the equity method to financial assets 655666680.89
Others
Total 594647384.74 31201053.12
356Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Supplementary Materials to the Financial Statements
1. Items and amounts of non-recurring gains/losses in the current year
Item Amount of the currentyear Description
Gains/losses on disposal of non-current assets (including the portion
offset for provisions for asset impairment) 21769444.15
Government grants included in current gains/losses (except for
government subsidies that are closely related to the Company's normal
business operation comply with national policies and are enjoyed in -560729053.82
accordance with defined criteria and have a continuing impact on the
Company's gains/losses)
Gains/losses on fair value changes in financial assets and liabilities held
by a non-financial enterprise as well as on disposal of financial assets
and liabilities (exclusive of the effective portion of hedges that arise in the -455947543.58
Company’s ordinary course of business)
Funds occupation fee charged to non-financial enterprises included in
current gains/losses
Gains/losses on entrusting others with investments or asset
management
Gains/losses on loan entrustment 86761707.56
Losses on assets resulted from force majeure factors such as natural
disasters
Reversed portions of impairment allowances for receivables which are
tested individually for impairment 13649084.68
Gains arising from business combination when the investment cost is
less than the recognized fair value of net assets of the investee
Current net gains/losses of subsidiaries acquired in business
combination under the same control from period-beginning to
combination date
Gains/losses on non-monetary asset swap
Gains/losses on debt restructuring
Non-recurring expenses incurred by the enterprise as a result of the
discontinuation of a related operating activity such as expenses for
relocating employees
One-time impact on current gains/losses due to adjustments in tax
accounting and other laws and regulations
One-time recognition of share-based payment expense due to
cancellation and modification of equity incentive plans
Cash-settled share-based payments gains/losses arising from changes
in the fair value of employee compensation payable after the date of
exercisability
Gains/losses on change in fair value of investment property subject to
follow-up measurement at fair value method
Gains from transactions at significantly unfair prices
Gains/losses arising from contingencies unrelated to the normal
operation of the Company's business
Custodian fees earned from entrusted operation
357Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
Item Amount of the currentyear Description
Non-operating revenue and expense other than the above -433788481.56
Other gains/losses that meet the definition of non-recurring gains/losses -1069326647.31
Subtotal -2397611489.88
Less: Income tax effects 1029921.23
Minority equity effects (after tax) -197080357.87
Total -2201561053.24 —
（1）Specific Information of Other Profit and Loss Items Complying with the Definition of
Non-recurring Profit and Loss项目金额原因
During the reporting period the Company changed the
accounting treatment method for its equity interest in
Wuhan Tianyuan Group Co. Ltd. 655666680.89 Wuhan Tianyuan Group Co. Ltd. from long-term equityinvestments (equity method) to trading financial assets
resulting in the recognition of non-recurring gains and
losses
During the reporting period the loss arising from the
claims due from loss-making subsidiaries in excess of
Excess losses of subsidiaries -1560621492.59 their net assets recognized by the Company wasincluded in the "net profit attributable to owners of the
parent company" thereby generating non-recurring
gains and losses
Interest on equity repurchase -164371835.61 During the reporting period the Company accrued
payments interest on equity repurchase payments
（2）The items that are not listed in the Explanatory Announcement No. 1 on Information
Disclosure by Companies Offering Securities to the Public - Non-recurring gains/losses
(Revised in 2023) but recognized by the Company as non-recurring gains/losses items
and involving significant amounts and listed non-recurring gains/losses items recognized
as recurring gains/losses items
Item Amount Reason
Government grants closely related to
the normal operation of the Company's
Tax rebates on software and VAT 16548508.82 business which comply with nationaladditional deduction policies and are received continuously
based on a certain standard quota or
quantitative amount
2. Return on net assets and earnings per share
EPS (RMB/share)
Weighted average
Profit for the Reporting Period
Return on net assets (%) Basic earnings per Diluted earnings
share per share
Net profit attributable to ordinary
shareholders of the parent Not applicable -5.2254 -5.2254
company
358Notes to Financial Statements of Konka Group Co. Ltd.
From January 1 2025 to December 31 2025
(Amounts are expressed in RMB unless otherwise stated)
EPS (RMB/share)
Weighted average
Profit for the Reporting Period
Return on net assets (%) Basic earnings per Diluted earnings
share per share
Net profit attributable to ordinary
shareholders of the parent
company before non-recurring Not applicable -4.3111 -4.3111
gains/losses
Konka Group Co. Ltd.Board of Directors
April 29 2026
359
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