Konka Group Co. Ltd. Interim Report 2023 (Summary)

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2023-53

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

133040 149987 21 Konka 03 22 Konka 01

133306 133333 22 Konka 03 22 Konka 05

KONKA GROUP CO. LTD.INTERIM REPORT 2023 (SUMMARY)

Part I Important Notes

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

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

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

Commission (the “CSRC”).All the Company’s directors have attended the Board meeting for the review of this Report and its

summary.Independent auditor’s modified opinion:

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

This Report and its summary have been prepared in both Chinese and English. Should there be any

discrepancies or misunderstandings between the two versions the Chinese versions shall prevail.Part II Key Corporate Information

1. Stock Profile

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

Stock exchange for stock listing Shenzhen Stock Exchange

Changed stock name (if any) N/A

Contact information Board Secretary Securities Representative

Name Wu Yongjun Miao Leiqiang

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

Office address

28 Keji South Twelfth Road Science and 28 Keji South Twelfth Road Science and

1Konka Group Co. Ltd. Interim Report 2023 (Summary)

Technology Park Yuehai Street Nanshan Technology Park Yuehai Street Nanshan

District Shenzhen Guangdong Province District Shenzhen Guangdong Province

China China

Tel. 0755-26609138 0755-26609138

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

2. Key Financial Information

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

Reason for retrospective restatement:

Change to accounting policies

H1 2022 Change (%)

H1 2023

Before Restated Restated

Operating revenue (RMB) 10472061171.94 16895470276.81 16895470276.81 -38.02%

Net profit attributable to the listed

-193240232.33172818438.83173266442.52-211.53%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -891594370.41 -742356181.71 -741908178.02 -20.18%

exceptional gains and losses (RMB)

Net cash generated from/used in

-201550105.24-421259506.73-421259506.7352.16%

operating activities (RMB)

Basic earnings per share

-0.08030.07180.0720-211.53%

(RMB/share)

Diluted earnings per share

-0.08030.07180.0720-211.53%

(RMB/share)

Weighted average return on equity

-2.55%1.87%1.87%-4.42%

(%)

31 December 2022 Change (%)

30 June 2023

Before Restated Restated

Total assets (RMB) 38925419822.05 38016368073.05 38027575163.66 2.36%

Equity attributable to the listed

7522168237.687640399721.997641975956.16-1.57%

company’s shareholders (RMB)

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

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

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

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

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

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

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

Standard No. 18 for Business Enterprises—Income Tax.

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

Unit: share

2Konka Group Co. Ltd. Interim Report 2023 (Summary)

Number of ordinary Number of preferred shareholders with resumed

852600

shareholders voting rights (if any)

Top 10 shareholders

Shareh Shares in pledge marked or

Nature of olding Number of Restricted frozen

Name of shareholder

shareholder percent shares shares

Status Shares

age

OVERSEAS CHINESE TOWN State-owned

21.75%5237469320

HOLDINGS COMPANY legal person

CITIC SECURITIES

Foreign

BROKERAGE (HONG KONG) 7.48% 180001110 0

legal person

CO. LTD.Domestic

WANG JINGFENG natural 4.15% 100000000 0

person

GUOYUAN SECURITIES Foreign

2.45%589272250

BROKER (HK) CO. LTD. legal person

Foreign

HOLY TIME GROUP LIMITED 2.38% 57289100 0

legal person

Foreign

GAOLING FUNDL.P. 2.19% 52801250 0

legal person

Foreign

NAM NGAI natural 0.96% 23000000 0

person

CHINA MERCHANTS State-owned

0.80%193142200

SECURITIES (HK) LIMITED legal person

BOCOM INTERNATIONAL Foreign

0.78%188960370

SECURITIES LIMITED legal person

Domestic

ZHANG SUFEN natural 0.55% 13360000 0

person

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

shareholder Overseas Chinese Town Holdings Company (OCT Group) holds 180001110 and

Related or acting-in-

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

concert parties among

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

shareholders above

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

are related parties or acting-in-concert parties or not.Shareholders

Wang Jingfeng holds 100000000 A-shares in the Company through his securities account for

conducting margin

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

4. Change of Controlling Shareholder or Actual Controller in Reporting Period

Change of the controlling shareholder in the Reporting Period:

□ Applicable √ Not applicable

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

□ Applicable √ Not applicable

The actual controller remained the same in the Reporting Period.

5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.

3Konka Group Co. Ltd. Interim Report 2023 (Summary)

6. Outstanding Bonds at the Date when this Report Was Authorized for Issue

√ Applicable □ Not applicable

(1) Basic Information of Bonds

Bonds

balance Coupo

Name Abbr. Code Issue date Due date

(RMB’0000 n rate

)

Privately placed corporate bonds in 2021 of 8 January 8 January

21 Konka 01 114894 100000.00 4.46%

Konka Group Co. Ltd (Tranche I) 2021 2024

Privately placed corporate bonds in 2021 of 21 May 21 May

21 Konka 02 133003 50000.00 4.00%

Konka Group Co. Ltd (Tranche II) 2021 2024

Privately placed corporate bonds in 2021 of 9 July

21 Konka 03 133040 9 July 2024 80000.00 3.95%

Konka Group Co. Ltd (Tranche III) 2021

Corporate bonds publicly offered to

14 July 14 July

professional investors in 2022 of Konka 22 Konka 01 149987 120000.00 3.23%

20222025

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

Privately placed corporate bonds offered to 8 8

professional investors in 2022 of Konka 22 Konka 03 133306 September September 60000.00 3.30%

Group Co. Ltd (Tranche I) (Variety I) 2022 2025

Privately placed corporate bonds offered to

18 October 18 October

professional investors in 2022 of Konka 22 Konka 05 133333 60000.00 3.50%

20222025

Group Co. Ltd (Tranche II)

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

Item 30 June 2023 31 December 2022

Debt/asset ratio 78.93% 77.74%

H1 2023 H1 2022

EBITDA-to-interest cover (times) 0.89 1.72

Part III Significant Events

During the Reporting Period the Company focused on the core businesses of "Consumer

Electronics + Semiconductor" adhered to professional platform-based operation implemented lean

management advocated long-term value and worked to improve its financial results. Also efforts

were made to strengthen competitiveness in the market and accelerate the transformation from

"Konka Electronics" to "Konka Technology". The Company during the Reporting Period promoted

business restructuring by optimising part of non-core business which failed to coordinate with the

main business and had low gross margin. The scale of the industry trade business dropped

significantly year-on-year resulting in a certain decrease of the Company's operating revenue.Affected by the following factors the Company recorded a net loss attributable to its shareholders

in the first half of 2023:

(I) The gross margin of the colour TV business declined year-on-year due to shrunken industry

scale increased cost of the supply chain the product sales structure in the adjustment phase.

1. The domestic scale of the colour TV industry kept decreasing. The recovery of the domestic scale

of the colour TV industry in the first half of 2023 did not meet expectations. Due to the decreased

market scale both the revenue and total gross margin of the Company's colour TV business in

China fell year-on-year in the first half of 2023.

2. The increased cost of the upstream supply chain led to a decrease in the Company's gross margin

4Konka Group Co. Ltd. Interim Report 2023 (Summary)

in the colour TV OEM business: The first half of 2023 witnessed an increase in the income scale of

the Company's colour TV OEM business. Nevertheless the orders delivered in the period suffered

from decreased gross margin due to the increased cost of the upstream supply chain which resulted

in a decrease in the total gross margin of the Company's OEM business.

3. The product sales structure of colour TVs is in the adjustment phase. In order to keep up with

market demands for the colour TV business the Company is gradually adjusting its product

planning and sales strategies toward highly frequent demands such as big screens high fresh rates

and new display technologies. (Big screens are bigger than 65 inches (inclusive). High fresh rates

exceed 120Hz (inclusive). Examples of new display technologies are Micro LEDs and Mini LEDs.)

Even so the sales scale and total gross margin of the colour TV business were influenced as new

colour TV products were in the introduction phase and marketing strategies were in the adjustment

phase in the first half of 2023.(II) The Company's semiconductor business was still at the initial phase of industrialisation during

the Reporting Period. In other words the output did not meet the requirements in scale and benefits

which affected the Company's overall operating profit.(III) Income was gained from the Company's projects in the industrial parks in Shangrao City

Jiangxi Province Shaoxing City Zhejiang Province and Yibin City Sichuan Province in the first

half of 2023. The Company reduced its business in industrial parks in this period in combination of

its development strategies and the macro-economic environment. Therefore the relevant income

decreased year-on-year.The Board of Directors

Konka Group Co. Ltd.

25 August 2023

5