2025 Interim Report of Konka Group Co. Ltd.
Konka Group Co. Ltd.2025 Interim Report
August 2025
12025 Interim Report of Konka Group Co. Ltd.
Section I Important Notes Table of Contents and Interpretations
The Board of Directors directors and senior officers of the Company guarantee
that the contents of the interim report are true accurate and complete and do
not contain false records misleading statements or major omissions and that
they bear individual and joint legal liabilities.WU Jianjun the Company's legal representative YU Huiliang CFO and PING
Heng the Head of the financial department (Chief Accountant) hereby declare
that they guarantee the financial information in the interim report is true
accurate and complete.Except for the following director other directors attended the meeting of Board
of Directors at which the interim report was reviewed
Name of the Director Who Position of the Director Who Reason for Not Name of the
Did Not Attend in Person Did Not Attend in Person Attending in Person Attorney
Ye Xingbin Director On business trip Cao Shiping
Any plans for the future or other forward-looking statements mentioned in the
interim report 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 for the year.This Report and its summary have been prepared in both Chinese and English.Should therebe any discrepancies or misunderstandings between the two
versions the Chinese versions shall prevail.
22025 Interim 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....8
Section III Discussion and Analysis of the Managem.. 11
Section IV Corporate Governance Social and Environ...21
Section V Important Matters ........................ 24
Section VI Changes in Shares and Shareholders .......35
Section VII Bonds ...................................39
Section VIII Financial Report .......................42
Section IX Other Data ............................. 187
32025 Interim Report of Konka Group Co. Ltd.
Documents Available for Reference
I. The financial statements with the signatures and seals of the Company's legal representative
Chief Financial Officer and head of the financial department (Chief Accountant);
II. The originals of all the Company's documents and announcements disclosed to the public in the
reporting period;
III. Location for inspection: the office of Board of Directors of the Company.
42025 Interim Report of Konka Group Co. Ltd.
Interpretations
Interpretations Refer to Definitions
Company the Company the Group Refer to Konka Group Co. Ltd.Electronics Technology Refer to Shenzhen Konka Electronics Technology Co. Ltd.Haimen Konka Refer to Nantong Haimen Konka Smart Technology Co. Ltd.Chengdu Konka Electronics Refer to Chengdu Konka Electronics Co. Ltd.Nantong Hongdin Refer to Nantong Hongdin Smart Technology Co. Ltd.Shenzhen Kangcheng Refer to Shenzhen Kangcheng Technology Innovation and Development Co. Ltd.Xiaojia Technology Refer to Xiaojia Technology Co. Ltd.Liaoyang Kangshun Refer to Liaoyang Kangshun Smart Technology Co. Ltd.Liaoyang Kangshun Renewable Refer to Liaoyang Kangshun Renewable Resources Co. Ltd.Nanjing Konka Refer to Nanjing Konka Electronics Co. Ltd.Chuzhou Konka Refer to Chuzhou Konka Precision Intelligent Manufacturing Technology Co. Ltd.Xingda Hongye Refer to Guangdong Xingda Hongye Electronics Co. Ltd.Konka Circuit Refer to Shenzhen Konka Circuit Co. Ltd.Konka Flexible Electronics Refer to Suining Konka Flexible Electronic Technology Co. Ltd.Konka Hongye Electronics Refer to Suining Konka Hongye Electronics Co. Ltd.Boluo Precision Refer to Boluo Konka Precision Technology Co. Ltd.Anhui Tongchuang Refer to Anhui Konka Tongchuang Electrical Appliances Co. Ltd.Jiangsu Konka Smart Refer to Jiangsu Konka Smart Appliance Co. Ltd.Anhui Electrical Appliance Refer to Anhui Konka Electrical Appliance Technology Co. Ltd.Frestec Refrigeration Refer to Henan Frestec Refrigeration Appliance Co. Ltd.Frestec Electrical Appliances Refer to Henan Frestec Electrical Appliances Co. Ltd.Frestec Household Appliances Refer to Henan Frestec Household Appliances Co. Ltd.Frestec Smart Home Refer to Henan Frestec Smart Home Technology Co. Ltd.Konka Investment Refer to Shenzhen Konka Investment Holding Co. Ltd.Yibin Konka Technology Park Refer to Yibin Konka Technology Park Operation Co. Ltd.Konka Capital Refer to Shenzhen Konka Capital Equity Investment Management Co. Ltd.Konka Suiyong Refer to Konka Suiyong Investment (Shenzhen) Co. Ltd.Shengxing Industrial Refer to Shenzhen Konka Shengxing Industrial Co. Ltd.Zhitong Technology Refer to Shenzhen Konka Zhitong Technology Co. Ltd.Konka Electronic Material Refer to Konka Electronic Material Technology (Shenzhen) Co. Ltd.Beijing Konka Electronic Refer to Beijing Konka Electronic Co. Ltd.Tianjin Konka Refer to Tianjin Konka Technology Co. Ltd.Suining Konka Industrial Park Refer to Suining Konka Industrial Park Development Co. Ltd.Suining Electronic Technological
Innovation Refer to Suining Konka Electronic Technological Innovation Co. Ltd.Shanghai Konka Refer to Shanghai Konka Industrial Co. Ltd.Yantai Kangjin Refer to Yantai Kangjin Technology Development Co. Ltd.Development of science and
technology industry Refer to Shenzhen Konka Technology Industry Development Co. Ltd.Sichuan Konka Refer to Sichuan Konka Smart Terminal Technology Co. Ltd
Yibin Konka Intelligent Refer to Yibin Konka Smart Technology Co. Ltd.Shenzhen Konka Semiconductor Refer to Shenzhen Konka Semiconductor Technology Co. Ltd.Chongqing Konka Refer to Chongqing Konka Technology Development Co. Ltd.Kowin Memory (Shenzhen) Refer to Kowin Memory Technology (Shenzhen) Co. Limited
52025 Interim Report of Konka Group Co. Ltd.
Kowin Memory (Hong Kong) Refer to Kowin Memory Technology (Hong Kong) Co. Limited
Konka Xinyun Semiconductor Refer to Konka ChipCloud Semiconductor Technology (Yancheng) Co. Ltd.Konka Cross-border (Hebei) Refer to Konka Cross-border (Hebei) Technology Development Co. Ltd.Shenzhen Nianhua Refer to Shenzhen Nianhua Enterprise Management Co. Ltd.Konka Central China Refer to Konka Huazhong (Hunan) Technology Co. Ltd.Shenzhen Chuangzhi Electrical
Appliances Refer to Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.Suining Jiarun Property Refer to Suining Jiarun Property Co. Ltd.Anhui Konka Refer to Anhui Konka Electronics Co. Ltd.Kangzhi Trade Refer to Anhui Kangzhi Trade Co. Ltd.Telecommunication Technology Refer to Shenzhen Konka Telecommunications Technology Co. Ltd.Konka Mobility Refer to Konka Mobility Co. Limited
Dongguan Konka Refer to Dongguan Konka Electronics Co. Ltd.Suining Konka Smart Refer to Suining Konka Smart Technology Co. Ltd.Chongqing Optoelectronic
Technology Refer to Chongqing Konka Optoelectronic Technology Co. Ltd.Yibin Kangrun Refer to Yibin Kangrun Environmental Technology Co. Ltd.Yibin Kangrun Medical Refer to Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd.Ningbo Kanghanrui Electric
Appliances Refer to Ningbo Kanghanrui Electric Appliances Co. Ltd.Jiangxi Konka Refer to Jiangxi Konka New Material Technology Co. Ltd.Jiangxi High Transparent Substrate Refer to Jiangxi High Transparent Substrate Material Technology Co. Ltd.Xinfeng Microcrystalline Refer to Jiangxi Xinfeng Microcrystalline Jade Co. Ltd.Shanxi Konka Intelligent Refer to Shaanxi Konka Smart Home Appliance Co. Ltd.Pengrun Technology Refer to Shenzhen Konka Pengrun Technology & Industry Co. Ltd.Jiaxin Technology Refer to Jiaxin Technology Co. Ltd.Kangrong Jiayuan Refer to Kangrong Jiayuan Technology (Zhejiang) Co. Ltd.Konka Unifortune Refer to Shenzhen Konka Unifortune Technology Co. Ltd.Jiali International Refer to Jiali International (Hong Kong) Limited
Kangjiatong Refer to Sichuan Kangjiatong Technology Co. Ltd.Nanjing Konka Smart Refer to Nanjing Konka Smart Appliance Co. Ltd.Hainan Konka Technology Refer to Hainan Konka Technology Co. Ltd.Konka Ventures Refer to Konka Ventures Development (Shenzhen) Co. Ltd.Yibin Konka Incubator Refer to Yibin Konka Incubator Management Co. Ltd.Yantai Konka Refer to Yantai Konka Healthcare Enterprise Service Co. Ltd.Konka Enterprise Service Refer to Guiyang Konka Enterprise Service Co. Ltd.Ji'an Konka Refer to Ji'an Konka Technology Industry Development Co. Ltd.Konka Europe Refer to Konka (Europe) Co. Ltd.Hong Kong Konka Refer to Hong Kong Konka Co. Ltd.Hongdin Trading Refer to Hongdin International Trading Limited
Konka North America Refer to Konka North America LLC
Kanghao Technology Refer to Kanghao Technology Co. Ltd.Hongdin Investment Refer to Hongdin Invest Development Limited
Chain Kingdom Memory
Technologies Refer to Chain Kingdom Memory Technologies Co. Limited
Chain Kingdom Semiconductor
(Shaoxing) Refer to Chain Kingdom Semiconductor (Shaoxing) Co. Ltd.
62025 Interim Report of Konka Group Co. Ltd.
Hongjet Refer to Hongjet (Hong Kong) Company Limited
Chongqing Xinyuan Semiconductor Refer to Chongqing Xinyuan Semiconductor Co. Ltd.Anlu Konka Refer to Anlu Konka Industry Operation Service Co. Ltd.Kanghong Dongsheng Refer to Shenzhen Kanghong Dongsheng Investment Partnership (LimitedPartnership)
Guizhou Konka New Material
Technology Refer to Guizhou Konka New Material Technology Co. Ltd.Shanxi Smart Home Appliance Refer to Konka Smart Home Appliance (Shanxi) Industry Development Co. Ltd.Guizhou Kanggui Material
Technology Refer to Guizhou Kanggui Material Technology Co. Ltd.Nantong Kanghai Refer to Nantong Kanghai Technology Industry Development Co. Ltd.Chongqing Kangyiyun Refer to Chongqing Kangyiyun Business Operation Management Co. Ltd.Jiangxi Konka High-tech Park Refer to Jiangxi Konka High-tech Park Operation and Management Co. Ltd.Shangrao Konka Electronic
Technology Innovation Refer to Shangrao Konka Electronic Technology Innovation Co. Ltd.Zhejiang Konka Electronic Refer to Zhejiang Konka Electronics Co. Ltd.Zhejiang Konka Technology Industry Refer to Zhejiang Konka Technology Industry Development Co. Ltd.Xi'an Konka Intelligent Refer to Xi'an Konka Intelligent Appliance Co. Ltd.Xi'an Konka Network Refer to Xi'an Konka Network Technology Co. Ltd.Xi'an Kanghong Technology Industry Refer to Xi'an Kanghong Technology Industry Development Co. Ltd.Xi'an Konka Intelligent Technology Refer to Xi'an Konka Intelligent Technology Development Co. Ltd.Songyang Industry Operation Refer to Songyang Konka Smart Industry Operation Management Co. Ltd.Kangyan Technology Refer to Shenzhen Kangyan Technology Co. Ltd.Songyang Konka Intelligent Refer to Songyang Konka Intelligent Technology Development Co. Ltd.Konka North China Refer to Konka North China (Tianjin) Technology Co. Ltd.Digital Technology Refer to Shenzhen Konka Digital Technology Development Co. Ltd.SASAC State-owned Assets Supervisor Commission of the State Council
China Securities Regulatory
Commission Refer to The China Securities Regulatory Commission
Shenzhen Stock Exchange Refer to The Shenzhen Stock Exchange
Shenzhen Securities Regulatory
Bureau Refer to The Shenzhen Bureau of the China Securities Regulatory Commission
RMB RMB 10000 and RMB 100 Refer to Expressed in the Chinese currency of RMB expressed in tens of thousandsmillion of RMB expressed in hundreds of millions of RMB
72025 Interim Report of Konka Group Co. Ltd.
Section II Company Profile and Financial Indicators
I. Company profile
Stock name Konka Group-A KonkaGroup-B Stock code 000016、200016
Previous stock name (if any) None
Stock exchange for stock listing The Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Chinese abbreviation of the
Company (if any) 康佳集团
Company name in English (if any) KONKA GROUP CO.LTD
Abbr. in English (if any) KONKA GROUP
Legal representative WU Jianjun
II. Contact information
Secretary of the Board of Directors Securities Representative
Name WU Jianjun (in an acting capacity) MIAO Leiqiang
Office of the Board of Directors 24/F Konka R&D Office of the Board of Directors 24/F Konka R&D
Address Center 28 Keji South Twelfth Road Science and Center 28 Keji South Twelfth Road Science andTechnology Park Yuehai Street Nanshan District Technology Park Yuehai Street Nanshan District
Shenzhen Guangdong Province Shenzhen Guangdong Province
Tel. 0755-26609138 0755-26609138
Fax 0755-26601139 0755-26601139
address szkonka@konka.com szkonka@konka.com
III. Other information
1. Contact information of the Company
Whether the Company's registered address office address postal code website e-mail address etc. have changed
during the reporting period
□ Applicable √ Not applicable
The Company's registered address office address and postal code website and e-mail address have not changed
during the reporting period. For details please refer to the 2024 Annual Report.
2. Place of information disclosure and provision
Whether the place of information disclosure and provision has changed during the reporting period
□ Applicable √ Not applicable
The website of stock exchange and the name and URL of the media where the Company discloses its interim
report and the place of provision of the Company's interim report have not changed during the reporting period.For details please refer to the 2024 Annual Report.
3. Other relevant information
Whether other relevant information has changed in the reporting period
□ Applicable √ Not applicable
IV. Key accounting data and financial indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
82025 Interim Report of Konka Group Co. Ltd.
The reporting period Same period last year Increase/decrease
Operating revenue (RMB) 5247507849.27 5412530372.47 -3.05%
Net profit attributable to the listed
company’s shareholders (RMB) -383328019.43 -1087581842.55 64.75%
Net profit attributable to the listed
company’s shareholders before non- -1027502125.26 -1103078610.72 6.85%
recurring gains and losses (RMB)
Net cash generated from/used in operating
activities (RMB) -675623430.93 -439338365.13 -53.78%
Basic earnings per share (RMB/share) -0.1592 -0.4517 64.76%
Diluted earnings per share (RMB/share) -0.1592 -0.4517 64.76%
Weighted average return on equity -18.13% -21.33% 3.20%
Change
End of the reporting period End of the previous year compared to theend of the
previous year.Total assets (RMB) 29933487161.20 30412763900.34 -1.58%
Equity attributable to the listed company’s
shareholders (RMB) 1861904820.92 2369668838.10 -21.43%
Net profit after deducting the impact of share-based payments
The reporting period
Net profit after deducting the impact of share-based payments(RMB) -383328019.43
V. Differences in accounting data under domestic and foreign accounting standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
None.
2. Net Profit and Equity under CAS and foreign accounting standards
□ Applicable √ Not applicable
None.VI. Non-recurring profit or loss items and amounts
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profit or losses on disposal of non-current assets (including the portion offset for provisions
for asset impairment) 30398244.09
Government grants included in profit and loss of the current period (except for government
grants that are closely related to the Company's normal business operation comply with
national policies and are enjoyed in accordance with defined criteria and have a continuing 39470052.40
impact on the Company's profit or loss)
Gain or loss 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 103288444.17
effective portion of hedges that arise in the Company’s ordinary course of business)
Gain or loss on loan entrustment 48726483.93
Non-operating revenue and expense other than the above 6607610.65
Other gains and losses that meet the definition of non-recurring gain/loss 655666680.89
92025 Interim Report of Konka Group Co. Ltd.
Less: Income tax effects 223117383.95
Non-controlling interests effects (net of tax) 16866026.35
Total 644174105.83
Particulars about other gains and losses that meet the definition of non-recurring gain/loss:
√ Applicable □ Not applicable
Item Amount involved(RMB) Reason
During the reporting period the Company changed its accounting treatment for the equity
Trading financial 655666680.89 investment in Wuhan Tianyuan Group Co. Ltd. reclassifying it from long-term equityassets investment (under equity method) to trading financial assets resulting in non-recurring
gains or losses
Explanation on the definition of non-recurring profit and loss items as recurrent profit and loss items in the
Explanatory Announcement No. 1 on Information Disclosure of Companies Publicly Issuing Securities - Non-
recurring Profit and Loss Items
√ Applicable □ Not applicable
Amount
Item involved Reason
(RMB)
Additional offset
and deduction of Government grants which are closely related to the normal business of the company and
software tax refund 1500685.37 which are in accordance with national policies and certain standard quota or quantitative
and VAT amount
102025 Interim Report of Konka Group Co. Ltd.
Section III Discussion and Analysis of the Management
I. Main business engaged in by the Company during the reporting period
At present the Company's main businesses include consumer electronics business semiconductor business and
PCB business. The relevant situation is described below:
(I) Consumer electronics business
This division primarily comprises the multimedia sub-division and the white goods sub-division with details as
follows:
1. The multimedia business
The Company's multimedia business faces the global market mainly including domestic color TV business and
export color TV business.The domestic color TV business mainly focuses on two business models: B2B (an abbreviation for Business-to-
Business that is business-to-business) and B2C (an abbreviation for Business-to-Consumer that is 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 source is also the differences
between the costs and the selling prices of its color TVs.According to data from AVC in the first half of 2025 domestic color TV sales reached 13.75 million units a
year-on-year increase of 1.8%. Sales revenue rose to RMB 56.1 billion up 7.5% year-on-year. The differentiated
performance in sales volume and sales revenue growth reflects the industry's deepening transformation towards
value enhancement.
2. White goods business
The white goods produced by the Company mainly include refrigerators washing machines air conditioners
freezers and dishwashers etc. which are sold through B2B and B2C mainly to the domestic market. The
Company profits from the margins between the costs and the selling prices of its white goods. Through the merger
and acquisition of the "Frestec" brand the Company strengthened the white goods brand foundation; by
establishing a Ningbo air-conditioning production base through a joint venture the Company has built up its own
air-conditioning manufacturing capabilities; 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;
by constructing a new Xi'an Smart Home Appliance Industrial Park the Company develops the dishwasher
business. in addition the Company is currently optimizing each link of "research production supply sales and
service" internally integrating channel resources externally achieving channel reuse with the upstream supply
side and the downstream channel side and continuously improving the product sales structure and
competitiveness of its white goods business.According to data from AVC China's refrigerator industry was undergoing structural adjustments in the first half
of 2025 with overall growth momentum remaining weak. During this same period domestic sales of air
conditioners reached 38.45 million units generating RMB 126.3 billion in sales revenue. On the export front
Chinese air conditioner exports saw a year-on-year increase of 4.7%; however monthly figures revealed a trend of
strong performance early on which tapered off later in the period. In the first half of 2025 the domestic washing
machine market recorded retail sales of 21.03 million units a year-on-year increase of 10.1% with retail sales
revenue reaching 47.6 billion yuan up 11.5% year-on-year. The industry demonstrated a trend of structural
upgrading through innovations in product forms.(II) Semiconductor business
Currently the Company has established a presence in the semiconductor optoelectronics field with a focus on
three major business segments including Micro LED & Mini LED chips mass transfer and display technology
advancing the transformation of its optoelectronics business from technological R&D to industrialization. After
industrialization the Company's operating profits will be derived from the spread between product costs and sales
prices.(III) PCB business
112025 Interim Report of Konka Group Co. Ltd.
The Company's PCB business primarily focuses on metal substrate products thick copper products high multi-
layer and HDI (high-density interconnect) products and rigid-flex 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. 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 capabilities the Company has carried out intelligent upgrading and
transformation of its production and manufacturing bases in places such as Anhui Dongguan Xi'an Suining and
Xinxiang. Among them the Konka factory in Anhui has been awarded the title of "National Intelligent
Manufacturing Demonstration Factory" and its intelligent manufacturing level has reached an advanced level in
the industry. In terms of R&D the Company has set up comprehensive AI and IoT laboratories and 5G Ultra HD
laboratories in cooperation with major universities or scientific research institutions and established an
academician workstation. The Company has also formed a technology research alliance that matches its industrial
layout. It possesses nearly a hundred core and key technologies a R&D team of approximately 1400 members
and has recruited a hundred industry technical talents for its Micro LED project. 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 has a certain brand awareness and reputation in the consumer group and has good brand credit in banks
and other financing channels. 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. In offline channels the
Company has 68 branches in provinces and cities across the country more than 5000 after-sales service stores
and its marketing and service network covers the whole country; Through online channels the Company has
settled in e-commerce platforms such as Tmall JD.com Suning Vipshop Pinduoduo etc. to explore the
development of live e-commerce business and seek new growth poles for business development; 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 with
many years of management and industry experience as well as a high quality execution team.III. Primary business analysis
(I) Overview
During the reporting period the Company focused on its primary business development adhered to a long-term
value orientation optimized resource allocation and deepened lean management. It steadily advanced specialized
initiatives including marketing reform manufacturing efficiency improvement flagship product engineering and
asset revitalization. These efforts resulted in gradual enhancement of specialized capabilities continuous
reduction in costs and expenses and overall operational improvement. However the Company reported a net loss
for the first half of 2025 due to the following factors:
1. During the first half of 2025 the consumer electronics industry in which the Company operates continued to
experience intensifying competition. Coupled with slower-than-expected new product launches and a product
portfolio that failed to effectively align with national subsidy policies the business incurred certain gross profit
losses from phasing out non-tier-1 energy efficiency products. Although overall expenses were reduced year-on-
year gross profit generation remained insufficient to cover operating expenses resulting in the consumer
electronics segment maintaining a loss position.
2. During the first half of 2025 although the Company's semiconductor business achieved certain breakthroughs
in technological R&D it remains in the initial stage of industrialization and has not yet achieved scaled
production or profitability. Consequently the semiconductor business segment continued to operate at a loss.
3. During the first half of 2025 pursuant to the prudence principle the Company made a provision for asset
impairment of approximately RMB 202 million in accordance with accounting policies and estimates.
4. During the first half of 2025 the Company maintained a relatively high level of interest-bearing debt resulting
in substantial financial cost burdens. The total financial expenses reached RMB 310 million during the reporting
period.To advance the specialized integration between central enterprises and optimize resource allocation on April 29
2025 Overseas Chinese Town Holdings Company (hereinafter referred to as "OCT Group") and its persons acting
in concert entered into a Share Transfer Agreement of Konka Group Co. Ltd. on Zero Consideration Basis with
122025 Interim Report of Konka Group Co. Ltd.
Panshi Runchuang (Shenzhen) Information Management Co. Ltd. (hereinafter referred to as "Panshi Runchuang")
and Hemao Co. Ltd. both wholly-owned subsidiaries of China Resources Co. Ltd. (hereinafter referred to as
"China Resources") pursuant to which they plan to transfer all their shares in the Company to Panshi Runchuang
and Hemao Co. Ltd. on a zero consideration basis. In July 2025 the aforementioned share transfer on a zero
consideration basis was completed with the transfer of ownership duly registered. Panshi Runchuang has become
the controlling shareholder of the Company and the de facto controller has changed to China Resources Co. Ltd.while the ultimate de facto controller remains the State-owned Assets Supervision and Administration
Commission of the State Council (SASAC). The Company will expeditiously integrate into the system of China
Resources deepen synergistic collaboration focus on its core mandates and primary businesses forge core
competitiveness and accelerate its transformation into an enterprise distinguished by prominent primary
businesses advanced technologies modern corporate governance and exceptional operational performance.(II) Year-on-year changes in key financial data
Unit: RMB
The reporting period Same period last year Change (%) Reasons for changes
Operating revenue 5247507849.27 5412530372.47 -3.05%
Cost of sales 4982943214.69 5115359512.44 -2.59%
Selling expense 305525414.66 389986556.84 -21.66%
Administrative
expense 273646470.76 315946020.02 -13.39%
Finance costs 310729361.79 280912375.66 10.61%
During the reporting period the
Company reclassified its equity
investment in Wuhan Tianyuan Group
Income tax 220369507.92 -51275843.13 529.77% Co. Ltd. from long-term equityexpense investment to trading financial assets
with a corresponding recognition of
deferred income tax liabilities resulting
in income tax expenses
R&D investment 187951295.68 214578026.81 -12.41%
Net cash
generated Cash paid for purchasing goods and
from/used in -675623430.93 -439338365.13 -53.78% receiving services during the reporting
operating period increased compared to the same
activities period last year
Net cash Cash received from the disposal of
generated equity investment in Chutian Dragon
from/used in 50699029.68 -315227824.59 116.08% during the reporting period increased
investing compared to the same period last year
activities
Net cash
generated Net cash inflow from new borrowings
from/used in 337127142.41 -548853897.53 161.42% and debt repayments during the
financing reporting period increased compared to
activities the same period last year
Net increase in
cash and cash -280778296.98 -1296409839.47 78.34%
equivalents
Major changes in the Company's profit composition or profit sources during the reporting period
□ Applicable √ Not applicable
There were no major changes in the profit composition or profit source of the Company during the reporting
period.(III) Breakdown of operating revenue
Unit: RMB
132025 Interim Report of Konka Group Co. Ltd.
The reporting period Same period last year
As % of total As % of total Change
Amount operating revenue Amount operating revenue (%)
(%)(%)
Total 5247507849.27 5412530372.47 -3.05%
By operating division
Consumer
electronics 4713029571.13 89.81% 4754524671.36 87.84% -0.87%
Semiconductor and
memory chip 97383684.29 1.86% 82962696.19 1.53% 17.38%
industry
Other 437094593.85 8.33% 575043004.92 10.63% -23.99%
By product category
White goods 2095189645.55 39.93% 2247070655.48 41.52% -6.76%
Color TVs 2244724045.65 42.78% 2115790827.61 39.09% 6.09%
PCB business 263122283.88 5.01% 231558538.52 4.28% 13.63%
Semiconductor and
memory chip 97383684.29 1.86% 82962696.19 1.53% 17.38%
business
Other 547088189.90 10.42% 735147654.67 13.58% -25.58%
By operating segment
Domestic 3538077644.56 67.42% 4046161239.69 74.76% -12.56%
Overseas 1709430204.71 32.58% 1366369132.78 25.24% 25.11%
(IV) Industries products or regions that account for more than 10% of the Company's operating revenue
or operating profit
√ Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in
Operating revenue Cost of sales profit operating YoY change in
margin revenue cost of sales
gross profit
margin
By operating division
Consumer
electronics 4713029571.13 4560843749.27 3.23% -0.87% 0.20% -1.03%
By product category
White goods 2095189645.55 1973305089.16 5.82% -6.76% -5.87% -0.89%
Color TVs 2244724045.65 2235973005.98 0.39% 6.09% 6.89% -0.74%
By operating segment
Domestic 3538077644.56 3338376377.57 5.64% -12.56% -11.97% -0.64%
Overseas 1709430204.71 1644566837.12 3.79% 25.11% 24.28% 0.63%
Under the circumstances that the calculation method of the Company's main business data is adjusted during the
reporting period the Company's main business data for the latest period is adjusted according to the calculation
method at the end of the reporting period
□ Applicable √ Not applicable
IV. Non-primary business analysis
√ Applicable □ Not applicable
Unit: RMB
Amount As % of totalprofit Forming reason Recurrent or not
142025 Interim Report of Konka Group Co. Ltd.
During the reporting period the change
Return on 540347018.43 -195.25% in accounting treatment for the equity
investment investment in Wuhan Tianyuan Group NotCo. Ltd. generated significant
investment income
Gain/loss on 173409194.85 -62.66% Mainly due to changes in fair value of
changes in fair value invested financial assets Not
Asset impairments -202496273.62 73.17% Mainly due to losses from impairment ofreceivables and inventories Not
Non-operating 9302209.51 -3.36%
revenue Mainly due to increase in gains that are Not
not directly related to the Company's
Non-operating 3650200.98 -1.32% daily business operations
expense Not
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
End of the reporting period End of the last year Change in Reason
percentage for any
Amount As % of totalassets Amount
As % of total
assets (%)
significant
change
Monetary assets 3825784922.81 12.78% 4115767247.73 13.53% -0.75%
Accounts
receivable 1384377310.43 4.62% 1458923066.70 4.80% -0.18%
Contract assets 2290923.90 0.01% 2630508.60 0.01% 0.00%
Inventories 2481187731.50 8.29% 2694648186.93 8.86% -0.57%
Investment
property 1598604378.45 5.34% 1650843239.51 5.43% -0.09%
Long-term
equity 4128207439.61 13.79% 4728360853.49 15.55% -1.76%
investments
Fixed Assets 4857130116.51 16.23% 5005836928.31 16.46% -0.23%
Construction in
progress 914367645.71 3.05% 873042499.04 2.87% 0.18%
Right-of-use
assets 140748193.84 0.47% 178185679.35 0.59% -0.12%
Short-term
borrowings 6262249010.16 20.92% 5741171468.26 18.88% 2.04%
Contract
liabilities 490890933.64 1.64% 623555669.97 2.05% -0.41%
Long-term
borrowings 3106775649.91 10.38% 5530649801.93 18.19% -7.81%
Lease
Liabilities 118228602.85 0.39% 146561588.52 0.48% -0.09%
2. Main overseas assets
□ Applicable √ Not applicable
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Cumulative Impairment
Item Beginning
Gain/loss on fair-
amount value changes in the
fair-value allowance Purchased in the Sold in the Other Ending amount
reporting period changes for the reporting period reporting period changes
charged to reporting
152025 Interim Report of Konka Group Co. Ltd.
equity period
Financial assets
1. Trading financial
assets (derivative
financial assets 286648129.34 14863175.72 1066861148.79 97465200.00 1270907253.85
excluded)
2. Derivative
financial assets
3. Investments in
other debt obligations
4. Investments in
other equity 16114932.00 16114932.00
instruments
5. Other non-current
financial assets 1802409887.89 -4361861.01 5359548.63 1792688478.25
Subtotal of financial
assets 2105172949.23 10501314.71 1066861148.79 102824748.63 3079710664.10
Investment property
Productive living
assets
Others 63943324.53 115550888.61 63943324.53 115550888.61
Total of the above 2169116273.76 10501314.71 1182412037.40 166768073.16 3195261552.71
Financial liability 0.00 0.00
Contents of other changes
Unit: RMB
Gain/loss on fair- Cumulative fair- Impairment
Item Beginning amount value changes in value changes
allowance
for the Purchased in the Sold in the Otherthe reporting charged to reporting period reporting period changes Ending amount
period equity reportingperiod
Receivables financing 63943324.53 115550888.61 63943324.53 115550888.61
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
4. Restrictions on asset rights as of the end of the reporting period
Item Ending book value (RMB) Reason for restriction
Among them RMB 699851445.35 is the margin deposit which is pledged for
Monetary assets 1323385743.34borrowing or issuing bank acceptance bills; RMB 540851836.28 is a time deposit thatcannot be withdrawn in advance; RMB 82682461.71 was restricted due to other
reasons.Accounts
receivable 1368874.62In pledge for loan
Inventories 303138143.22As collateral for loan
Investment
property 772060174.86As collateral for loan
Fixed Assets 1522476743.79Mortgage loans financing lease mortgages and mortgages guaranteed by originalshareholders
Intangible 580261932.71Mortgage loans financing lease mortgages and mortgages guaranteed by originalAssets shareholders
Total 4502691612.54
VI. Investment status analysis
1. Total investment amount
√ Applicable □ Not applicable
162025 Interim Report of Konka Group Co. Ltd.
Amount of reporting period (RMB) Amount of the same period of last year(RMB) Change (%)
230479770.06383427125.49-39.89%
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
Reason
Fixed Input amount Accumulative Accumulativ
for not
Investmen assets Industry in the actual input Capital Project Estimate e realized
meeting
the DisclosurItem t method investmen involved Reporting amount as of the resource progres d revenues as schedule e date (if Disclosure index (if any)
t or not Period period-end s s revenues of the and any)period-end expected
revenues
Suining
Konka
Electronic Electroni Not
Technology Self-build Yes c 8370704.09 607447041.89
Self-
funded applicabl
October
Industrial industry e
172018
Park
Chongqing
Konka Self-
Semiconducto Electroni and Not
r Self-build Yes c 15813992.45 722244681.57 bank applicabl
June 14 Http://www.cninfo.com.cn/new/ind
Photoelectric industry loan- e 2019 ex
Industrial funded
Park
Self-
Frestec Electroni raised
Refrigeration Self-build Yes c 13473785.2
Not
574857433.90 and applicabl July 21
Park industry 5 bank e 2020loan-
funded
Total -- -- -- 37658481.7 1904549157.39 6 -- -- -- -- --
Frestec Refrigeration Park was put into production. Suining Konka Electronic Technology Industrial Park is under
construction. The first-phase infrastructure construction of the project of the Semiconductor Optoelectronics
Research Institute in Chongqing Konka Semiconductor Optoelectronics Industrial Park has been completed and
passed the acceptance inspection.
4. Financial investments
(1) Securities investments
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulati
Variety of Compan Initial Accounting
fair-value ve fair- Purchased in Sold in the Gain or loss
Ticker investment measureme Beginning changes in value the reporting reporting in the Ending book Accounti
Capital
security y name cost nt method book value the changes period period reporting value ng title
resourc
reporting charged period es
period to equity
Domestic/Forei 00304 Chutian Trading
gn stock 0 Dragon 974897430.4
Fair value
method 286648129. 5014999.1 97465200. 95351934.6 194197928.5 financial
Self-
2 34 6 00 8 0 assets funded
Domestic/Forei 30112 Wuhan Fair value Trading Self-
gn stock 7 Tianyua 1066861148. method 9848176.5 1066861148. 665514857. 1076709325. financialn 79 6 79 45 35 assets funded
Total 2041758579.21 286648129. 14863175. 1066861148. 97465200. 760866792. 1270907253. -- --34 72 79 00 13 85
Disclosure date of
announcement on board’s
approving securities investment April 4 2023 and April 1 2025
(if any)
172025 Interim Report of Konka Group Co. Ltd.
(2) Investments in derivative financial instruments
□ Applicable √ Not applicable
None.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: RMB'0000
Total Proportion of Total raiseduse of raised funds ProportionNet raised Total raised of total Total Purpose and Amount of
Year of Method of Listing date Totalraised amount of funds used
Total used funds at the changed in
total raised end of the use during funds with raised funds unused whereabouts
raised funds
fundraising fundraising of securities funds raised in the funds (2) reporting the changes in with raised of unused
idle for
funds (1) current more than
period period (3) = reporting
use changes in funds raised funds
(2)/(1) period use
two years
Non-public
2025 issuance of June 30 Notcorporate 2025 41000 40868.8 41000 41000 100.32% 0 0 0.00% 0 applicable 0
bonds
Non-public
2025 issuance of July 11corporate 2025 79000 78747.2 79000 79000 100.32% 0 0 0.00% 0
Not
applicable 0
bonds
Total -- -- 120000 119616 120000 120000 100.32% 0 0 0.00% 0 -- 0
Description of overall use of raised funds
1. The non-public issuance of corporate bonds (Phase I) (Type I) by Konka Group Co. Ltd. to professional investors in 2025 was completed on June 23 2025 and the raised funds had
been used up as at the date of approval for disclosure of the interim report. 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) (Type I) by Konka Group Co. Ltd. to professional investors in 2025 was completed on July 4 2025 and the raised funds had
been used up as at the date of approval for disclosure of the interim report. 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) Committed projects of raised funds
□ Applicable √ Not applicable
(3) Project changes of raised funds
□ Applicable √ Not applicable
There were no changes in raised funds during the reporting period of the Company.VII. Sale of major assets and equity
1. Sale of major assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of major equity interests
□ Applicable √ Not applicable
VIII. Analysis of major holding and shareholding companies
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the
Company’s net profit
Unit: RMB
Relations
Name Principa Registeredhip with l activity capital Total assets Net assets
Operating Operating
revenue profit Net profit
the
182025 Interim Report of Konka Group Co. Ltd.
Company
Producti
Shenzhe on and
n Konka
Circuit subsidiary
sales of RMB1000000 909724428. 752087881
electroni 000 46 .58 3400671.43
3569472.2272971.
6469
Co. Ltd. c
products
Import
Hong and
Kong exportsubsidiary of HKD500000 280714136 417259107 100259813
--
Konka 16330867 16329864
Co. Ltd. electroni
1.53.699.01.72.09
c
products
Henan
Frestec Producti
Househo on and
ld subsidiary sales of RMB2100000 235621199. 210585071 110204954. 24778347 17724729
Applianc electroni 00 18 .80 59 .31 .02
es Co. c
Ltd. products
Subsidiaries obtained or disposed of in the reporting period
√ Applicable □ Not applicable
Name Subsidiaries obtained or disposed of Effects on overall operations andin the reporting period operating performance
Kangrong Jiayuan Technology (Zhejiang) Co.Ltd. Withdrawal by equity transfer For better allocation of assets
Information about principal subsidiaries and joint stock companies:
None
IX. Structured entities controlled by the Company
□ Applicable √ Not applicable
X. Risks faced by the Company and countermeasures
For consumer electronics business market competition is intensifying and operational pressures are mounting. For
semiconductor business although the Company has made repeated breakthroughs in core technologies it remains
in the initial stage of industrialization and has not yet achieved economies of scale. To address the above risks the
Company will focus on developing its primary businesses strengthen lean management optimize asset allocation
accelerate the scaling process of its semiconductor operations and effectively enhance profitability.For consumer electronics business:
Firstly focus on premium product initiatives to enhance gross profit contribution. Guided by the flagship product
engineering strategy the Company will establish clear operational mechanisms and implementation safeguards
forming a closed-loop management system to ensure that 13 flagship product series across six categories deliver
stable gross profit throughout their life cycles thereby laying a solid product foundation for operational
improvement.Secondly focus on marketing reform to explore incremental markets: for domestic operations the Company will
enhance integrated empowerment to achieve synergistic interaction and resource sharing while ensuring steady
improvement in major appliance operations; adopt a phased integration approach—"implementing integration step
by step as conditions mature"—considering multiple dimensions including regional market capacity scale of color
and major appliance businesses customer base customer overlap and store product mix; for overseas operations
pursue collective expansion optimize its business model build overseas business stations and build a localized
marketing organization; strengthen the collective expansion implement systematic operations and promote the
reuse of multi-category channels; focus on the core market establish business bases select key target markets
such as North America Latin America Japan and Russia give full play to the advantages of regions customers
and brands to promote each other and strengthen product capabilities delivery capabilities and quality control
capabilities.
192025 Interim Report of Konka Group Co. Ltd.
Thirdly focus on manufacturing efficiency enhancement to boost cost competitiveness: first optimize production
bases and remove excess capacity; second strengthen production-sales coordination to improve manufacturing
efficiency by opening up color-and-white goods OEM and overseas business customer platforms to effectively
match production capacity and demand manufacturing and marketing production plans and materials; third:
deepen lean cost reduction and enhance competitive advantages. Rationally plan the utilization efficiency of the
park promote the standardization of processes and parts and reduce procurement costs.For semiconductor business: first maintain technological leadership by driving Micro LED industrialization with
a market-oriented approach while continuously making breakthroughs in chip technology and mass transfer
technology based on customer needs; second focus on key account sales breakthroughs to achieve scaled sales of
Mini LED commercial display products.XI. Formulation and implementation of market capitalization management system and
valuation enhancement plan
Whether the Company has established a market capitalization management system.□ Yes √ No
Whether the Company has disclosed its valuation enhancement plan.□ Yes √ No
XII. Implementation of the "Quality and Return Dual Enhancement" Action Plan
Whether the Company has disclosed an announcement on "Quality and Return Dual Enhancement" Action Plan.□ Yes √ No
202025 Interim Report of Konka Group Co. Ltd.
Section IV Corporate Governance Social and Environment
I. Changes in the Company's directors supervisors and senior officers
√ Applicable □ Not applicable
Name Position(s) held Type Date Reason
WU Jianjun Director Election August 14 2025 Change of term
WU Jianjun Chairman of the Board Election August 14 2025 Change of term
CAO Shiping Director Election August 14 2025 Change of term
YE Xingbin Employee Director Election August 14 2025 Change of term
YU Huiliang Director Election August 14 2025 Change of term
SONG Qing Director Election August 14 2025 Change of term
SUN Yongqiang Director Election August 14 2025 Change of term
LI Zhong Independent Director Election August 14 2025 Change of term
PAN Zhaoguo Independent Director Election August 14 2025 Change of term
LIU Jian Independent Director Election August 14 2025 Change of term
CAO Shiping President Appointed August 14 2025 Change of term
SHI Hongchao Vice President Appointed August 14 2025 Change of term
YANG Bo Vice President Appointed August 14 2025 Change of term
LIN Hongfan Vice President Appointed August 14 2025 Change of term
YU Huiliang Financial Director Appointed August 14 2025 Change of term
Vice Chairman of the
ZHOU Bin Board of Directors Resignation uponexpiration of term August 14 2025 Change of term(presiding over work)
HUANG Xinzheng Director Resignation uponexpiration of term August 14 2025 Change of term
WANG Shuguang Independent Director Resignation uponexpiration of term August 14 2025 Change of term
DENG Chunhua Independent Director Resignation uponexpiration of term August 14 2025 Change of term
CAI Weibin Chairman of the Board of Resignation uponSupervisors expiration of term August 14 2025 Change of term
YANG Guobin Supervisor Resignation uponexpiration of term August 14 2025 Change of term
LI Jun Employee Supervisor Resignation uponexpiration of term August 14 2025 Change of term
NIE Yong Financial Director Resignation uponexpiration of term August 14 2025 Change of term
LI Chunlei Secretary of the Board of Resignation uponDirectors expiration of term August 14 2025 Change of term
II. Profit distribution and conversion of capital reserves into share capital during the
reporting period
□ Applicable √ Not applicable
The Company has planned not to distribute cash dividends bonus shares or convert capital reserves into share
capital in the half year.III. Implementation of the Company's equity incentive plans employee stock ownership plans
or other employee incentive measures
□ Applicable √ Not applicable
None.
212025 Interim Report of Konka Group Co. Ltd.
IV. Disclosure of environmental information
Number of enterprises included in the list of enterprises that disclose environmental information in
accordance with the law (enterprises) 2
No. Name of enterprise Index for querying reports on the disclosure of environmental information inaccordance with the law
1 Guangdong Xingda HongyeElectronics Co. Ltd. https://www-app.gdeei.cn/gdeepub/front/dal/report/list
2 Boluo Konka Precision TechnologyCo. Ltd. https://www-app.gdeei.cn/gdeepub/front/dal/report/list
V. Social responsibilities
The Company insists on the principle of health stability and sustainable development to benefit shareholders and
employees and satisfy customers. In pursuit of economic profits and protection of shareholders’ profits the
Company is active in protecting legal rights of debtors and employees treating suppliers customers and
consumers in good faith and participating in environmental protection and community establishment for
harmonious development of the Company and society.
1. To protect rights of shareholders and creditors
(1) The Company protects rights of shareholders
The Company insists on the protection of rights for all shareholders especially equal status and legal rights for
minority shareholders and make insurance of rights to be informed participation and vote.The Company actively performs its obligation of information disclosure to ensure the timely accurate and
complete disclosure of information; and strictly implements the insider registration and inside information
confidentiality system to ensure the fairness of information disclosure.The Company pays attention to repay shareholders and insists on mutual development with investors. 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 of shareholders.
(2) The Company protects rights of creditors
In full consideration of legal rights of creditors the Company complies with strict business rules of credit
cooperation to guarantee legal rights of creditors. No damage upon rights of creditors happened.
2. The Company performs responsibilities to suppliers and customers
(1) It is devoted to improving customer service quality.
The Company insists on the philosophy of customer orientation to strengthen customer service management
service consciousness for employees service levels and to protect rights for customers. Through customer service
hot-line field visit and follow-up service the Company has set a good corporate image for customers.
(2) Be honest to suppliers
Following the principle of integrity and mutually beneficial cooperation the Company keeps good cooperative
relations with suppliers at each level. The corporate principle is open fair and impartial to standardize
procurement protect suppliers’ legal rights and lay solid foundation for further cooperation.
3. Be enthusiastic to social and public welfare undertakings
Based on the principle of appreciating and repaying society the Company has participated in all kinds of activities
for public welfare cooperated with society undertaken social responsibilities actively and promoted harmonious
development between enterprise and society.
4. Be responsible for employees
The Company adheres to a people-oriented approach continuously improving the working environment for
employees and enhancing their professional skills. The Company provides opportunities and platforms for growth
and development encouraging employees to better themselves and achieve personal fulfillment thereby fostering
mutual progress for both employees and the enterprise.
(1) Be honest and law-abiding to protect legal rights for employees
222025 Interim Report of Konka Group Co. Ltd.
The Company strictly complies with laws and regulations such as Labor Law and Labor Contract Law entering
into labor contracts with employees in accordance with the law. The Company treats all employees fairly in terms
of recruitment compensation training promotion termination and retirement. The Company fully contributes to
various social insurances and housing provident funds on behalf of its employees. To safeguard employees' health
the Company organizes annual routine physical examinations with follow-up checks and medical consultations
provided promptly if any issues are detected.The Company would improve living quality and enhance cohesive force and sense of belongings through a series
of safeguard measures.
(2) To protect occupational health for employees
On the one hand the Company objectively and effectively guarantees the personal safety and occupational health
of employees from the system by establishing and improving the safety system organizing relevant learning and
strict safety assessment; On the other hand through vigorous publicity of safety knowledge safety awareness is
deeply rooted in the hearts of the people so that employees can abide by safety regulations spontaneously and
consciously and play a positive subjective role in ensuring their own occupational health and production safety.
(3) To promote occupational skills by diversified professional training
The Company has always paid great attention to diversified training for employees. On the one hand the
Company is meticulous in the training of routine business and vocational skills and actively implements it in
strict accordance with relevant national regulations to ensure the improvement of employees' business level and
improves employees' vocational skills through normalized regular training management; On the other hand the
Company provides employees with more colorful training programs through independent training platforms
training lecturers special training lectures etc. so that employees can effectively improve their overall
professional quality and comprehensive quality in addition to their own work.
5. Be responsible for environment
The Company places great emphasis on environmental changes and close relationships with environment by
creating low carbon economy in technical innovation from green manufacturing green products to green industry
circular economy. The Company would provide efforts in protecting global ecological environment.Subsequently the Company would undertake all social responsibilities by improving strategic management
sustainable development and enterprise economic efficiency. It would reattribute all shareholders and would
protect legal rights for creditors and employees. To be honest to suppliers and customers the Company would
serve local economic development and participate in social public welfare activities and environmental protection.It would undertake all responsibilities in many fields and make attributions to social economic and environment
sustainable development for a socialism harmonious society.
232025 Interim Report of Konka Group Co. Ltd.
Section V Important Matters
I. Commitments made by the Company's de facto controller shareholders related parties
acquirers the Company and other related parties that have been fulfilled within the reporting
period and those that have not been fulfilled within the time limit as of the end of the
reporting period
□ Applicable √ Not applicable
During the reporting period there were no commitments that were made by the de facto controllers shareholders
related parties acquirers and other related parties of the Company to be fulfilled during the reporting period but
failed to be fulfilled as of the end of the reporting period.II. Occupation of the Company’s capital by the controlling shareholder or any of Its related
parties for non-operating purposes
□ Applicable √ Not applicable
None.III. Irregularities in the provision of guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV. Appointment and dismissal of accounting firms
Whether the interim report has been audited.□ Yes √ No
The Company's interim report has not been audited.V. Explanation of the Board of Directors on the "modified report" of the accounting firm
during the reporting period
□ Applicable √ Not applicable
VI. Explanation of the Board of Directors on the "modified report" of the previous year
□ Applicable √ Not applicable
VII. Bankruptcy and restructuring related matters
□ Applicable √ Not applicable
No such cases in the Reporting Period.VIII. Litigation
Major litigation and arbitration matters
√ Applicable □ Not applicable
Amount Index to
General information involved Provision Progress Decisions and Disclosure
(RMB’0000) effects
Execution of decisions date disclosedinformation
Due to a purchase and sales contract
Sichuan Shuwu Guangrun Logistics Co. Ltd.filed a lawsuit against the Company's The case is The case is June 1
subsidiary Dongguan Konka Electronics Co. 12283.46 No under second- under second- The case is under trial. 2023
Ltd. requesting the latter to make payment instance trial. instance trial.for goods and pay liquidated damages http://www.cninfo.com.cn/new
Due to equity transfer disputes Alibaba /index
(China) Network Technology Co. Ltd. filed
a lawsuit against Anhui Kaikai Shijie E-
commerce Co. Ltd. and the Company The case is The case is The case is under April 15
seeking a court order for the defendants to 12488.79 No under second- under second- second-instance trial. 2025
pay equity investment funds and interest instance trial. instance trial.along with legal fees and other related
expenses
242025 Interim Report of Konka Group Co. Ltd.
Due to disputes over a trademark license The case has been
contract Shenzhen Kangjia Jiapin IntelligentElectrical Apparatus Technology Co. Ltd. closed.（Shenzhenfiled a lawsuit against the Company seeking The case has The case has Kangjia Jiapin April 15
a court order for the defendant to pay 30002.91 No been closed. been closed. Intelligent Electrical 2025
damages for contract termination other Apparatus Technology
losses and litigation costs and refund Co. Ltd has withdrawnsecurity deposits its lawsuit）
Due to disputes over a purchase and sales
contract of international goods Chongqing
Konka Photoelectric Technology Research
Institute Co. Ltd. a subsidiary of the The case is The case is
Company filed a lawsuit against Micro 6455.46 No under under The case is under April 15
Crystal Transfer Group Ltd. seeking arbitration. arbitration. arbitration. 2025
termination of the contract between the
parties recovery of price differences and
compensation for losses
Due to disputes over the right of recourse
the Company filed a lawsuit against Zhongfu
Tiangong Construction Group Co. Ltd. HE
Junsheng CNNC Weiye Construction The case is The case is
Investment Co. Ltd. Zhongfu Health 11693.78 No under first- under first- The case is under first- April 15
Industry Holding Group Co. Ltd. and instance trial. instance trial. instance trial. 2025
Zhonghong Health Industry (Beijing)
Technology Co. Ltd. seeking repayment of
the principal and overdue interest
Due to disputes over a purchase and sales
contract Heilongjiang Xinda New Material
Co. Ltd. filed a lawsuit against the The case is The case is
Company's subsidiary Anhui Konka 13444.02 No under first- under first- The case is under first- April 15
Electronics Co. Ltd. seeking a court order instance trial. instance trial. instance trial. 2025
for the defendant to make payment for goods
and pay interest
Due to disputes over tort liability Shenzhen
Shuwu Industrial Co. Ltd. filed a lawsuit
against Shenzhen Qianhai Comprehensive
Xinfeng Supply Chain Management Co.Ltd. and the Company's subsidiary The case is The case is
Dongguan Konka Electronics Co. Ltd. 3779.97 No under first- under first- The case is under first- April 15
seeking a court order for the defendants to instance trial. instance trial. instance trial. 2025
jointly compensate for losses from the
payment for goods and price differences pay
for losses arising from the occupation of
funds and cover the litigation costs
Due to a contract dispute the Company's
subsidiary Chain Kingdom Memory
Technologies Co. Limited filed a lawsuit
against ICMAX Semiconductor Co. Ltd. LI The case is The case is
Bin and XU Xiaoxuan seeking a court order 46025.06 No under first- under first- The case is under first- July 31
for the defendants to pay the overdue instance trial. instance trial. instance trial. 2025
principal of the payment for goods
liquidated damages and other associated
costs
Due to a sales contract dispute the
Company's subsidiary Shenzhen Konka
Telecommunications Technology Co. Ltd.filed a lawsuit against LIU Jie ZHANG The case is The case is
Yinxia REN Chunni JIANG Tianliang and 2016.24 No under first- under first- The case is under first- July 31
Ditsing Technology Co. Ltd. seeking a instance trial. instance trial. instance trial. 2025
court order for the defendants to pay the
payment for goods and bear joint and several
liability for the debt
Due to a dispute over the right of recourse
the Company filed a lawsuit against Jiangxi
High Transparent Substrate Material
Technology Co. Ltd. Jiangxi Xinzixin Real
Estate Co. Ltd. XIONG Muzhi ZHU
Qingming and ZENG Xiaohong seeking a The case is The case is
court order for the defendants to reimburse 2348.40 No under first- under first-
The case is under first- July 31
instance trial. instance trial. instance trial. 2025the plaintiff for fulfilling the payment by
proxy of financing lease payments and
interest as well as legal fees under the
Financing Lease Contract (GZ (2019) NZZ
No.026)
Due to a dispute over the right of recourse The case is The case is The case is under first- July 31
the Company filed a lawsuit against Jiangxi 2348.40 No under first- under first- instance trial. 2025
High Transparent Substrate Material instance trial. instance trial.
252025 Interim Report of Konka Group Co. Ltd.
Technology Co. Ltd. Jiangxi Xinzixin Real
Estate Co. Ltd. XIONG Muzhi ZHU
Qingming and ZENG Xiaohong seeking a
court order for the defendants to reimburse
the plaintiff for fulfilling the payment by
proxy of financing lease payments and
interest as well as legal fees under the
Financing Lease Contract (GZ (2019) NZZ
No.028)
Remarks: the court or arbitration institution ruled in favor of the Company in the following cases and the rules 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 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 and 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 interests to the Company; 3. Due to the unpaid notes due
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 interests to the
Company; 4. Due to the unpaid notes due Konka Factoring filed a lawsuit with the court requesting that Tahoe Group Co. Ltd. Fuzhou Taijia
Industrial Co. Ltd. and Xiamen Lianchuang Microelectronics Co. Ltd. be ordered to pay the notes and corresponding interests to Konka Factoring; 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 interests 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 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 to pay the corresponding annual profit compensation and fund occupation fee to FANG Xianglong and JIANG Yan; 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 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 for the goods and the overdue interest loss; 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 interests. 11. due to 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 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 demanding an order to stop the infringement and compensate for the loss;
14. due to commission contract dispute the Company's subsidiary Anhui Konka Electronics Co. Ltd. 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 the Company's subsidiary Shenzhen Nianhua Enterprise Management Co. Ltd.sued FANG Xiang Long 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 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 being implemented; 19. Due to contract
disputes the Company's subsidiary Konka Telecommunications Technology Co. Ltd. sued Hong Kong Join Star Electronics International Limited
ZENG Jiankai and ZHONG Yuhua demanding payment of goods and liquidated damages; 20. Because of a dispute over a trust contract 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 a trust contract the Company’s subsidiary Hainan Konka Material Technology Co. Ltd. sued Shenzhen Meisenyuan Plastic
Electronics Co. Ltd. Shantou Meisen Technology Co.Ltd. Jiangsu East China Hardware City 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. 22. Due to a dispute over a purchase and
sales contract the Company's subsidiary Dongguan Konka Electronics Co. Ltd. filed a lawsuit with People's Court of Nanshan District Shenzhen
requesting the latter to order Dongguan Gaoneng Polymer Limited Company WANG Dong Shenzhen Xinlian Xingyao Trading Co. Ltd. Shenzhen
Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong Trading Co. Ltd. and HUANG Zhihao to pay the overdue payment for goods and
corresponding liquidated damages; 23. Due to a dispute over a commission 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. DU
Xinyu 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. requesting 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 should be ordered to pay the payment for goods and liquidated
damages; 26. Due to a dispute over a commission contract Henan Frestec Refrigeration 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 Commercial Plaza Real Estate Development (Huizhou) 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; 27. Due to a contract dispute Shenzhen Konka
262025 Interim Report of Konka Group Co. Ltd.
Unifortune Technology Co. Ltd. a subsidiary of the Company filed a lawsuit against Shenzhen Junxing Communication Technology Co. Ltd.Gumei Electronics (Hongkong) Technology Limited 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 requiring 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
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 and 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. As the bills held by the Company failed to be paid upon maturity
the Company filed a lawsuit with the court requesting the latter to order Wuhan Jialian Agricultural Technology Development Co. Ltd. to pay the
aforesaid bills and corresponding interest to the Company. 3. Due to disputes over international goods contracts the Company's subsidiary Jiaxin
Technology Co. Ltd. sued TRIPOD ELECTRONICS TECHNOLOGY (HONGKONG) LIMITED. 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 the purchase and sales contract of
international goods Micro Crystal Transfer Group Ltd. filed a lawsuit against the Company's subsidiary Chongqing Konka Optoelectronics
Technology Research Institute Co. Ltd. requesting the latter to make payment for goods and pay 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. Since Jiangxi Xinxin Jian'an Engineering Co. Ltd. (hereinafter referred to as "Jiangxi Xinxin") Jiangxi Shanshi Technology
Development Co. Ltd. (hereinafter referred to as "Jiangxi Shanshi") and Jiangxi Zhongyi Decorative Materials Co. Ltd. (hereinafter referred to as
"Jiangxi Zhongyi") failed to repay the loan and interest to Jiangxi Branch of China Great Wall Asset Management Co. Ltd. (hereinafter referred to as
"Jiangxi Branch of Great Wall Asset") who sued to the court for a judgment on requiring Jiangxi Xinxin Jiangxi Shanshi and Jiangxi Zhongyi to
repay the loan of RMB 300 million default penalty of RMB 108000 and interest of RMB 13.65 million to Jiangxi Branch of Great Wall Asset and at
the same time nine guarantors including Jiangxi Konka Xinfeng Microcrystalline and Nano Microcrystalline to undertake joint and several liability
guarantee.Other litigation events
□ Applicable √ Not applicable
IX. Penalties and rectification
□ Applicable √ Not applicable
None.X. Integrity status of the Company and its controlling shareholders and de facto controller
□ Applicable √ Not applicable
XI. Major related-party transactions
1. Continuing related-party transactions
√ Applicable □ Not applicable
Type of Content of As % of Approved Over Obtainabl
Related Relationsh related- related-
total value Method e market
ip with the party party Pricing Transacti
Total value
(RMB’000 of all
transaction the
line approve of price for Disclosuparty Company transaction transaction principle on price 0) same-type (RMB’000 d line settleme same-type re date
Index to disclosed information
s s transactions 0) or not
nt transactio
ns
Overseas
Chinese
Town Under the Purchase Property
Holdings same De of manageme Negotiate Market Not April 2 http://www.cninfo.com.cn/new/i
Company Facto commoditi nt utilities d price price 2751.79 0.58% 15000 No Cashes and office applicable 2024 ndexand its Controller
subsidiari services leases
es
Sales of
TV smart
Overseas terminals
Chinese and other
Town Under the products
Holdings same De Sales of and
Company Facto goods and collection
Negotiate Market 2865.45 0.58% 10000 No Cash Not April 2 http://www.cninfo.com.cn/new/i
services of smart d price price applicable 2024 ndexand its Controller
subsidiari TV
es terminalinstallation
fees and
other fees
Total -- -- 5617.24 -- 25000 -- -- -- -- --
Large-amount sales return in detail Not applicable
Give the actual situation in the Reporting Period The Company has published the 2025 Forecasting Public Notice on Routine Related-party Transaction on Securities Times Shanghai
(if any) where an estimate had been made for Securities News and China Securities Journal as well as the website http://www.cninfo.com.cn/new/index on April 15 2025. In the
272025 Interim Report of Konka Group Co. Ltd.
the total value of continuing related-party Reporting Period the basis for pricing transaction price transaction amount and settlement methods of raw materials purchased by the
transactions by type to occur in the Reporting Company were basically in accordance with the forecast. The total amount incurred was RMB5.61724 million.Period
Reason for any significant difference between
the transaction price and the market reference Not applicable
price (if applicable)
2. Related-party transactions regarding purchase or sales of assets or equity interests
□ Applicable √ Not applicable
The Company had no related-party transactions involving acquisition or sale of assets or equity during the
reporting period.
3. Related-party transactions regarding joint investments in third parties
□ Applicable √ Not applicable
No such cases in 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 with related parties
Liabilities payable to related parties:
Relationship Beginning Increase in Recovered in Interest in Ending
Related party with the Forming balance this period this period Interest rate this period balance
Company reason (RMB’0000) (RMB’0000) (RMB’0000) (RMB’0000) (RMB’0000)
Overseas The 81091.00 3.00% 1223.12 81091.00
Chinese Controlling Company 50000.00 3.00% 754.17 50000.00Town applies
Holdings shareholder entrusted loan 70000.00 3.00% 1055.83 70000.00
Company to it 11447.30 3.00% 172.66 11447.30
Effects of liabilities with related parties on The Company applies entrusted loan from Overseas Chinese Town Holdings Company
the Company’s operating results and which meets the needs of the company's existing business development and reduces the
financial conditions financing cost.
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.
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 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
XII. Major contracts and their performance
1. Entrustment contracting and leases
(1) Entrustment
□ Applicable √ Not applicable
None.
282025 Interim Report of Konka Group Co. Ltd.
(2) Contracting
□ Applicable √ Not applicable
None.
(3) Leases
√ Applicable □ Not applicable
Note to leases
No significant leases in the Reporting Period.During the reporting period Konka R&D Building Konka Guangming Technology Center and other properties
received rents of about RMB 38.82 million.The project bringing about the Company's profit or loss as over 10% of total profit in the Reporting Period
□ Applicable √ Not applicable
No lease project bringing about the Company's profit or loss as over 10% of total profit in the Reporting Period
2. Major guarantees
√ Applicable □ Not applicable
Unit: RMB'0000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure date
of the HavingObligor guarantee line Line of guarantee Actual occurrence date
Guaranteed
amount Type of guarantee
Collateral Counter Term of Guarantee for a
(if any) guarantee guarantee expired related party or not
announcement or not
May 22 2023 1499 Joint-liability None No 4 years No No
July 30 2024 1374 Joint-liability None No 1 year No No
July 30 2024 1124 Joint-liability None No One yearand a half No No
Yikang April 28 2022 50000 September 24 2024 2248 Joint-liability None No 1 year No NoTechnology
October 24 2024 4388 Joint-liability None No 1 year No No
December 25 2024 1374 Joint-liability None No 1 year No No
January 14 2025 1499 Joint-liability None No 1 year No No
January 17 2025 750 Joint-liability None No 1 year No No
Jiangxi Xinxin
Jian'an
Engineering 10000 December 12 2016 10000 Joint-liability None No No No
Co. Ltd.Jiangxi
Zhongyi
Decoration 10000 December 12 2016 10000 Joint-liability None No No No
Materials Co.Ltd.Jiangxi
Shanshi
Technology 10000 December 12 2016 10000 Joint-liability None No No No
Development
Co. Ltd.September 8 2022 60000 Joint-liability None No 3 years No Yes
October 18 2022 60000 Joint-liability None No 3 years No Yes
March 30
2022 and September 22 2023 50000 Joint-liability None No 3 years No Yes
Overseas February 25 December 13 2023 50000 Joint-liability None No 3 years No Yes
Chinese Town 2023 and
Holdings August 10 950000 January 29 2024 150000 Joint-liability None No 3 years No Yes
Company 2023 March 12024 and March 18 2024 80000 Joint-liability None No 3 years No Yes
September 11
2024 March 26 2024 50000 Joint-liability None No 3 years No Yes
June 25 2024 60000 Joint-liability None No 2 years No Yes
September 26 2024 240000 Joint-liability None No 3 years No Yes
Total approved line for such guarantees in the 0 Total actual amount of such guarantees in theReporting Period (A1) Reporting Period (A2) 2249
Total approved line for such guarantees at the end of Total actual balance of such guarantees at the end of
the Reporting Period (A3) 1076870 the Reporting Period (A4) 844256
292025 Interim Report of Konka Group Co. Ltd.
Guarantees provided between the Company and subsidiaries
Disclosure date
Obligor of the Line of Actual occurrence date Guaranteed
Having
guarantee line guarantee amount Type of guarantee
Collateral Counter guarantee (if Term of Guarantee for a
(if any) any) guarantee expiredor not related party or notannouncement
June 20 2024 5000 Joint-liability None No One yearand a half No No
July 12 2024 3000 Joint-liability None No 1 year No No
August 14 2024 1000 Joint-liability None No 1 year No No
Anhui February 25
Tongchuang 2023 55000 January 1 2025 10000 Joint-liability None No 1 year No No
February 24 2025 5000 Joint-liability None No 1 year No No
February 25 2025 2000 Joint-liability None No 1 year No No
April 21 2025 4000 Joint-liability None No 1 year No No
August 25 2023 4500 Joint-liability None No 3 years No No
Boluo April 28 2022
Precision and February 7300 December 19 2024 1800 Joint-liability None No 1 year No No25 2023
April 29 2025 1000 Joint-liability None No 1 year No No
Electronics February 25
Technology 2023 100000 December 3 2024 50000 Joint-liability None No 1 year No No
March 24
Dongguan 2021 and
Konka February 25 90000 June 23 2021 80000 Joint-liability None No 10 years No No
2023
March 24
Sichuan 2021 and
Konka February 25 20000 May 23 2023 4000 Joint-liability None None 3 years No No
2023
Ningbo One year
Kanghanrui March 14 2024 6000 Joint-liability None None No No
Electric April 28 2022 12000
and a half
Appliances July 13 2024 6000 Joint-liability None None 1 year No No
August 10 2021 10216 Joint-liability None 10 years No No
October 29 2021 7000 Joint-liability None 5 years No No
Other shareholder of
October 24 2022 7000 Joint-liability None Anhui Konka 4 years No No
Anhui Konka April 28 2022 40716 June 25 2023 5000 Joint-liability None provides a counterguarantee for the 5 years No No
September 11 2024 5500 Joint-liability None Company for 22% of 1 year No No
the guarantee line
September 20 2024 2000 Joint-liability None 1 year No No
March 6 2025 4000 Joint-liability None 1 year No No
December 22 2023 5000 Joint-liability None Two years No No
Konka Circuit March 24 50000 None Three and2021 July 19 2023 10000 Joint-liability None a half No No
years
Konka Xinyun March 24 July 12 2021 8278 Joint-liability None None 5 years No No
Semiconductor 2021 30000 November 26 2024 12100 Joint-liability None None 1 year No No
Yibin Konka March 22
Intelligent 2025 980 May 19 2025 980 Joint-liability None None 3 years No No
Chongqing March 24
Konka 2021 55600 December 13 2022 38000 Joint-liability None None 15 years No No
Frestec Smart
Home April 28 2022 12240 January 30 2024 10200 Joint-liability None None 3 years No No
Konka
Flexible April 28 2022 975 December 19 2022 975 Joint-liability None None 6 years No No
Electronics
Konka April 28 2022
Hongye and February 19010 January 24 2024 19010 Joint-liability None None 14 years No No
Electronics 25 2023
Xi'an
Kanghong February 25
Technology 2023 30000 May 26 2023 30000 Joint-liability None None 10 years No No
Industry
Total approved line for such guarantees in the Reporting Period (B1) 12980 Total actual amount of such guarantees in theReporting Period (B2) 26980
Total approved line for such guarantees at the end of the Reporting 924435 Total actual balance of such guarantees at the end ofPeriod (B3) the Reporting Period (B4) 358559
Guarantees provided between subsidiaries
Disclosure date
Obligor of the
Counter Having
guarantee line Line of guarantee Actual occurrence date
Guaranteed
amount Type of guarantee
Collateral guarantee Term of Guarantee for a(if any) (if any) guarantee
expired related party or not
announcement or not
302025 Interim Report of Konka Group Co. Ltd.
None
Total approved line for such guarantees in the Reporting Period (C1) 0 Total actual amount of such guarantees in theReporting Period (C2) 0
Total approved line for such guarantees at the end of the Reporting 0 Total actual balance of such guarantees at the end ofPeriod (C3) the Reporting Period (C4) 0
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line approved in the Reporting Period (A1+B1+C1) 12980 Total actual guarantee amount in the Reporting Period(A2+B2+C2) 29229
Total approved guarantee line at the end of the Reporting Period 2001305 Total actual guarantee balance at the end of the(A3+B3+C3) Reporting Period (A4+B4+C4) 1202815
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 646.01%
Of which:
Balance of guarantees provided for shareholders De Facto Controller and their related parties (D) 800000
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 1202815
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 1084332
Total of the three amounts above (D+E+F) 1202815
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) None
Provision of external guarantees in breach of the prescribed procedures (if any) None
Compound guarantees:
None
3. Entrusted wealth management
√ Applicable □ Not applicable
Unit: RMB'0000
Unrecovered
Type Funding source Amount Undue amount Unrecovered overdue amountoverdue amount with provision for
impairment
Trust financial
products Self-funded 10000 10000 0 0
Total 10000 10000 0 0
High-risk entrusted wealth management with significant single amount or low security and poor liquidity
□ Applicable √ Not applicable
Whether there is a case where the principal cannot be recovered at maturity or other cases which may cause
impairment for entrusted wealth management
□ Applicable √ Not applicable
4. Other major contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.XIII. Explanation of other major matters
√ Applicable □ Not applicable
(I) Change in the controlling shareholder: to advance the specialized integration between central enterprises and
optimize resource allocation on April 29 2025 OCT Group and its persons acting in concert entered into a Share
Transfer Agreement of Konka Group Co. Ltd. on Zero Consideration Basis with Panshi Runchuang and Hemao
Co. Ltd. both wholly-owned subsidiaries of China Resources pursuant to which they plan to transfer all their
shares in the Company to Panshi Runchuang and Hemao Co. Ltd. on a zero consideration basis. In July 2025 the
aforementioned share transfer on a zero consideration basis was completed with the transfer of ownership duly
registered. Panshi Runchuang has become the controlling shareholder of the Company and the de facto controller
has changed to China Resources Co. Ltd. while the ultimate de facto controller remains the State-owned Assets
Supervision and Administration Commission of the State Council (SASAC).(II) Issuance of corporate bonds: the Company's non-public issuance of corporate bonds of RMB 2.4 billion issued
312025 Interim Report of Konka Group Co. Ltd.
RMB 410 million and RMB 790 million respectively on June 23 2025 and July 4 2025.(III) The Company held the 39th Meeting of the 10th Board of Directors on January 13 2025 at which it
considered and approved the "Proposal on the Plan and Summary for the Issuance of Shares by Konka Group Co.Ltd. to Purchase Assets and Raise Supporting Funds" and other relevant proposals. For specific details please
refer to the relevant announcements disclosed by the Company on January 14 2025 on the CNINFO Website
(http://www.cninfo.com.cn/new/index).On June 10 2025 the Company held the 48th Meeting of the 10th Board of Directors and the 18th Meeting of the
10th Board of Supervisors at which it considered and approved the "Proposal on Terminating the Issuance of
Shares to Purchase Assets and Raising of Supporting Funds" and the "Proposal on Signing the Termination
Agreement of the Agreement on Issuance of Shares to Purchase Assets". The Company was approved to terminate
the current transaction and sign the relevant termination agreement with the counterparty to the transaction. The
above-mentioned matters have been considered and approved at the 9th Meeting of the Special Meeting of
Independent Directors of the 10th Board of Directors of the Company. For specific details please refer to the
"Announcement on Terminating the Plan for Issuance of Shares to Purchase Assets and Raising of Supporting
Funds" (Announcement No.: 2025-46).(IV) Disclosure index of significant information
Announcement Date Title Page on newspaper Website link
No.
2025-01 January Announcement on Resolutions of 2025 First
Securities Times B28 http://www.cninfo.com.cn/new/index
4 2025 Extraordinary General Meeting Shanghai Securities News 60etc.
2025-02 January Suspension Progress Announcement on Planning to
Securities Times B18
7 2025 Issue Shares to Purchase Assets Shanghai Securities News 60etc.
January Announcement on General Risk Warning Regarding Securities Times B712025-03 14 2025 the Share-for-Asset Acquisition and Supporting Shanghai Securities News 52Fundraising and Resumption of Trading etc.January Announcement on Resolutions of 39th Meeting of Securities Times B712025-04 14 2025 the Tenth Board of Directors Shanghai Securities News 52etc.
2025-05 January Announcement on the Resolutions of the 15th
Securities Times B71
14 2025 Meeting of the Tenth Board of Supervisors Shanghai Securities News 52etc.
January Announcement on Shareholding Details of the Top Securities Times B712025-06 14 2025 Ten Shareholders and Top Ten Circulating Shanghai Securities News 52Shareholders as of the Pre-halt Trading Day etc.January Announcement on the Postponement of the Securities Times B712025-07 14 2025 Extraordinary General Meeting for Review of the Shanghai Securities News 52Proposed Transaction etc.Announcement on Listing Transfer of Partial Equity
2025-08 January of Joint Stock Company and Waiver of Right of First
Securities Times B43
17 2025 Refusal and Completion of Business Change Shanghai Securities News 36
Registration for Related-party Transactions etc.
2025-09 January Announcement on Progress in the Provision of
Securities Times B88
21 2025 External Guarantee Shanghai Securities News 73etc.
Securities Times B18
2025-10 January27 2025 2024 Result Forecast Shanghai Securities News 28etc.
2025-11 February Announcement on Progress of the Share-for-Asset
Securities Times B16
14 2025 Acquisition and Supporting Fundraising Shanghai Securities News 9etc.
March 8 Notice on Convening 2025 Second Extraordinary Securities Times B132025-12 2025 General Meeting Shanghai Securities News 16etc.
2025-13 March 8 Announcement on Resolutions of 41st Meeting of
Securities Times B13
2025 the Tenth Board of Directors Shanghai Securities News 16etc.
March 8 Announcement on Extension of Loans Provided by Securities Times B132025-14 2025 Holding Subsidiaries to Shareholders in Proportion Shanghai Securities News 16to Equity etc.
2025-15 March Announcement on Progress of the Share-for-Asset Securities Times B20Shanghai Securities News 52
322025 Interim Report of Konka Group Co. Ltd.
14 2025 Acquisition and Supporting Fundraising etc.
Securities Times B44
2025-16 March Announcement on Resolutions of 42nd Meeting of22 2025 the Tenth Board of Directors Shanghai Securities News132 etc.
2025-17 March Notice on Convening 2025 Third Extraordinary
Securities Times B44
22 2025 General Meeting Shanghai Securities News132 etc.
2025-18 March Announcement on Guarantee Provision for Holding
Securities Times B44
22 2025 Company Shanghai Securities News132 etc.
March Announcement on Extension of Provision of Securities Times B442025-19 22 2025 Financial Assistance to Sichuan Chengrui Real Shanghai Securities NewsEstate Co. Ltd. 132 etc.March Announcement on Resolutions of 2025 Second Securities Times B342025-20 25 2025 Extraordinary General Meeting Shanghai Securities News 44etc.Securities Times B75
2025-21 March Announcement on Changes in Some Accounting28 2025 Policies Shanghai Securities News108 etc.
2025-22 March Announcement on Progress in the Provision of
Securities Times B160
29 2025 External Guarantee Shanghai Securities News 9etc.
2025-23 April 1 Announcement on Resolutions of 43rd Meeting of
Securities Times B87
2025 the Tenth Board of Directors Shanghai Securities News 10etc.
2025-24 April 1 Announcement on Change in Accounting Policy for
Securities Times B87
2025 an Equity-Method Investee Shanghai Securities News 10etc.
2025-25 April 8 Announcement on Resolutions of 2025 Third
Securities Times B16
2025 Extraordinary General Meeting Shanghai Securities News 12etc.
2025-26 April 9 Announcement on a Material Event Being Planned
Securities Times B105
2025 by the Controlling Shareholder Shanghai Securities News108 etc.
2025-27 April 12 Announcement on Progress of the Share-for-Asset
Securities Times B103
2025 Acquisition and Supporting Fundraising Shanghai Securities News153 etc.
2025-28 April 14 Announcement on Abnormal Fluctuations in Stock
Securities Times B3
2025 Trading Shanghai Securities News 9etc.
2025-29 April 15 Announcement on the Resolutions of the 16th
Securities Times A7
2025 Meeting of the Tenth Board of Supervisors Shanghai Securities News 20etc.
Securities Times A7
2025-30 April 15 Announcement on Expected Routine Related-party2025 Transactions in 2025 Shanghai Securities News 20etc.
April 15 Announcement on the 2024 Annual Profit Securities Times A72025-31 2025 Distribution Plan Shanghai Securities News 20etc.
2025-32 April 15 Announcement on Accrual of Asset Impairment
Securities Times A7
2025 Reserves for 2024 Shanghai Securities News 20etc.
2025-33 April 15 Summary of 2024 Annual Report of Konka Group
Securities Times A7
2025 Co. Ltd. Shanghai Securities News 20etc.
2025-34 April 15
Securities Times A7
2025 2024 Annual Report Shanghai Securities News 20etc.
2025-35 April 15 Announcement on Resolutions of 44th Meeting of
Securities Times A7
2025 the Tenth Board of Directors Shanghai Securities News 20etc.
2025-36 April 15 Announcement on Cumulative Litigation and
Securities Times A7
2025 Arbitration Shanghai Securities News 20etc.
2025-37 April 26 Announcement on Holding 2024 Online Result
Securities Times B784
2025 Release Shanghai Securities News300 etc.
332025 Interim Report of Konka Group Co. Ltd.
2025-38 April 30
Securities Times B398
2025 2025 First Quarter Report Shanghai Securities News 76etc.
Securities Times B80
2025-39 April 30 Announcement on Progress of the Material Event2025 Being Planned by the Controlling Shareholder Shanghai Securities News732 etc.
2025-40 May 9 Announcement on Progress of Guarantee Provision
Securities Times B15
2025 for Wholly-owned Company Shanghai Securities News 57etc.
2025-41 May 12 Announcement on Progress of the Share-for-Asset
Securities Times A12
2025 Acquisition and Supporting Fundraising Shanghai Securities News 10etc.
2025-42 May 21 Announcement on Resolutions of 46th Meeting of
Securities Times B30
2025 the Tenth Board of Directors Shanghai Securities News 60etc.
May 21 Securities Times B302025-43 2025 Notice on Convening 2024 General Meeting Shanghai Securities News 60etc.June 3 Announcement on the Intent to Sell a Partial Stake in Securities Times B1372025-44 2025 Wuhan Tianyuan Group Co. Ltd. at Opportune Shanghai Securities News 60Times etc.Securities Times B137
2025-45 June 3 Announcement on Resolutions of 47th Meeting of2025 the Tenth Board of Directors Shanghai Securities News 60etc.
2025-46 June 11 Announcement on Termination of the Share-for-
Securities Times B2
2025 Asset Acquisition and Supporting Fundraising Shanghai Securities News 76etc.
June 11 Announcement on Convening an Investor Briefing Securities Times B22025-47 2025 Regarding the Termination of the Share-for-Asset Shanghai Securities News 76Acquisition and Supporting Fundraising etc.
2025-48 June 11 Announcement on Resolutions of 48th Meeting of
Securities Times B2
2025 the Tenth Board of Directors Shanghai Securities News 76etc.
June 11 Announcement on the Resolutions of the 18th Securities Times B22025-49 2025 Meeting of the Tenth Board of Supervisors Shanghai Securities News 76etc.Securities Times B46
2025-50 June 17 Announcement on Resolutions of 2024 General2025 Meeting Shanghai Securities News 44etc.
June 25 Announcement of Issuance Results of Privately Securities Times B142025-51 2025 Placed Corporate Bonds to Professional Investors in Shanghai Securities News 842025 of Konka Group Co. Ltd (Tranche I) etc.
2025-52 June 28 Announcement on Progress of the Material Event
Securities Times B176
2025 Being Planned by the Controlling Shareholder Shanghai Securities News171 etc.
XIV. Major matters of the Company's subsidiaries
□ Applicable √ Not applicable
342025 Interim Report of Konka Group Co. Ltd.
Section VI Changes in Shares and Shareholders
I. Share changes
1. Share changes
Unit: share
Before Increase/decrease in the reporting period (+/-) After
Shares as Shares as
dividend dividend
Number Percentage New converted converted(%) issues from Others Subtotal Number
Percentage
from (%)
profit capitalreserves
I. Restricted shares 0 0.00% 0 0.00%
II. Unrestricted shares 2407945408 100.00% 2407945408 100.00%
1. RMB-denominated
ordinary shares 1596593800 66.31% 1596593800 66.31%
2. Domestically listed
foreign shares 811351608 33.69% 811351608 33.69%
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
Progress on any share repurchases:
□ Applicable √ Not applicable
Implementation progress of reducing and repurchasing shares through centralized bidding
□ 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
□ Applicable √ Not applicable
352025 Interim Report of Konka Group Co. Ltd.
III. Number of the Company's shareholders and shareholding status
Unit: share
Number of ordinary shareholders
as at the end of the reporting 151794 Number of preferred shareholders with resumedvoting rights (if any) 0period
Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through
refinancing)
Number of Shares in pledge
Name of Nature of Shareholding shares held Increase/decrease Restrictedin the Reporting shares Unrestricted marked or frozenshareholder shareholder percentage at the
period-end Period held
shares held
Status Number
Overseas Chinese
Town Holdings State-owned
Company legal person
21.75%52374693200523746932
CITIC
SECURITIES
BROKERAGE Foreignlegal person 7.48% 180001110 0 0 180001110(HONG KONG)
CO. LTD.GUOYUAN
SECURITIES Foreign
BROKER (HK) legal person 2.54% 61262343 -166800 0 61262343
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
CHINA
MERCHANTS Foreign
SECURITIES (HK) legal person 0.80% 19309520 -689000 0 19309520
LIMITED
Foreign
NAM NGAI natural 0.69% 16660000 -3340000 0 16660000
person
Domestic
ZHAO Juan natural 0.63% 15197650 9577650 0 15197650
person
Domestic
LI Tao natural 0.49% 11800000 11800000 0 11800000
person
HONG KONG
SECURITIES Foreign
CLEARING legal person 0.45% 10902363 -12524004 0 10902363
COMPANY LTD.Strategic investor or general legal
person becoming a top-10
ordinary shareholder due to rights None
issue (if any)
The wholly-owned subsidiary of the major shareholder Overseas Chinese Town Holdings
Related or acting-in-concert Company Jialong Investment Co. Ltd. holds 180001110 common shares and 18360000
parties among the shareholders common stocks of the Company respectively through CITIC Securities Brokerage (Hong Kong)
above Co. Ltd. and China Merchants Securities (Hong Kong) Co. Ltd. Jialong Investment Co. Ltd. andOverseas Chinese Town Holdings Company are persons acting in concert. It is unknown whether
other shareholders are related or act in concert.Explain if any of the shareholders
above was involved in Not applicable
entrusting/being entrusted with
voting rights or waiving voting
362025 Interim Report of Konka Group Co. Ltd.
rights
Special account for share
repurchases (if any) among the None
top 10 shareholders
The shareholding situation of the top 10 shareholders with unrestricted tradable shares (excluding shares lent out through refinancing
and senior executive/locked shares)
Type
Name of shareholder Unrestricted shares held at the period-end
Type Number
Overseas Chinese Town Holdings RMB-
Company 523746932 denominated 523746932ordinary stock
CITIC SECURITIES Domestically
BROKERAGE (HONG KONG) 180001110 listed foreign 180001110
CO. LTD. stock
GUOYUAN SECURITIES Domestically
BROKER (HK) CO. LTD. 61262343 listed foreign 61262343stock
Domestically
HOLY TIME GROUP LIMITED 56289100 listed foreign 56289100
stock
RMB-
WANG Jingfeng 27001800 denominated 27001800
ordinary stock
CHINA MERCHANTS Domestically
SECURITIES (HK) LIMITED 19309520 listed foreign 19309520stock
Domestically
NAM NGAI 16660000 listed foreign 16660000
stock
RMB-
ZHAO Juan 15197650 denominated 15197650
ordinary stock
RMB-
LI Tao 11800000 denominated 11800000
ordinary stock
HONG KONG SECURITIES RMB-
CLEARING COMPANY LTD. 10902363 denominated 10902363ordinary stock
Related or acting-in-concert The wholly-owned subsidiary of the major shareholder Overseas Chinese Town Holdings
parties among top 10 unrestricted Company Jialong Investment Co. Ltd. holds 180001110 common shares and 18360000
shareholders as well as between common stocks of the Company respectively through CITIC Securities Brokerage (Hong Kong)
top 10 unrestricted shareholders Co. Ltd. and China Merchants Securities (Hong Kong) Co. Ltd. Jialong Investment Co. Ltd. and
and top 10 shareholders Overseas Chinese Town Holdings Company are persons acting in concert. It is unknown whetherother shareholders are related or act in concert.Description of the top 10 ordinary The A-share shareholder WANG Jingfeng held 27001800 shares through the customer credit
shareholders' participation in the trading secured securities account of Guotai Haitong Securities Co. Ltd. The A-share shareholder
margin trading and securities LI Tao held 11600000 shares through the customer credit trading secured securities account of
lending business (if any) 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
Indicate by tick mark 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.
372025 Interim Report of Konka Group Co. Ltd.
□ Yes √ No
None.IV. Changes in shareholding of directors and senior officers
□ Applicable √ Not applicable
There were no changes in the shareholdings of the Company's directors and senior officers during the reporting
period. For details please refer to the 2024 Annual Report.V. Changes in the controlling shareholder or the de facto controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not applicable
None.To advance the specialized integration between central enterprises and optimize resource allocation on April 29
2025 OCT Group and its persons acting in concert entered into a Share Transfer Agreement of Konka Group Co.
Ltd. on Zero Consideration Basis with Panshi Runchuang and Hemao Co. Ltd. both wholly-owned subsidiaries
of China Resources pursuant to which they plan to transfer all their shares in the Company to Panshi Runchuang
and Hemao Co. Ltd. on a zero consideration basis. In July 2025 the aforementioned share transfer on a zero
consideration basis was completed with the transfer of ownership duly registered. Panshi Runchuang has become
the controlling shareholder of the Company and the de facto controller has changed to China Resources Co. Ltd.while the ultimate de facto controller remains the State-owned Assets Supervision and Administration
Commission of the State Council (SASAC).Change of the de facto controller during the reporting period:
□ Applicable √ Not applicable
None.VI. Preferred shares
□ Applicable √ Not applicable
No Preference shares in the Reporting Period.
382025 Interim 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 corporate bonds
Unit: RMB'0000
Name Abbr. Code Issue date Value date Due date Bondsbalance Interest rate
Way of
redemption Trade place
Corporate bonds publicly Interests shall
offered to professional be paid every The
investors in 2022 of Konka 22 Konka 149987 14 July 2022 14 July 2022 July 1401 2025 120000 3.23%
year and the Shenzhen
Group Co. Ltd. (Tranche I) principals shall Stock
(Variety I) be repaid when Exchangeexpired.Privately placed corporate Interests shall
bonds to professional be paid every The
investors in 2022 of Konka 22 Konka 133306 September 8 September 8 September 8 60000 3.30% year and the Shenzhen
Group Co. Ltd. (Tranche I) 03 2022 2022 2025 principals shall Stock
(Variety I) be repaid when Exchangeexpired.Interests shall
Privately placed corporate be paid every The
bonds to professional 22 Konka 133333 October 18 October 18 October 18 year and the Shenzheninvestors in 2022 of Konka 05 2022 2022 2025 60000 3.50% principals shall Stock
Group Co. Ltd.(Tranche II) be repaid when Exchange
expired.Interests shall
Privately placed corporate be paid every The
bonds to professional 24 Konka January 29 January 29 January 29 year and the Shenzhen
investors in 2024 of Konka 01 133759 2024 2024 2027 150000 4.00% principals shall Stock
Group Co. Ltd. (Tranche I) be repaid when Exchange
expired.Privately placed corporate Interests shall
bonds to professional be paid every The
investors in 2024 of Konka 24 Konka 133782 March 18 March 18 March 18 year and the Shenzhen
Group Co. Ltd. (Tranche II) 02 2024 2024 2027
40000 4.00% principals shall Stock
(Variety I) be repaid when Exchangeexpired.Privately placed corporate Interests shall
bonds to professional be paid every The
investors in 2024 of Konka 24 Konka 133783 March 18 March 18 March 1803 2024 2024 2027 40000 4.03%
year and the Shenzhen
Group Co. Ltd. (Tranche II) principals shall Stock
(Variety II) be repaid when Exchangeexpired.Privately placed corporate Interests shall
bonds to professional be paid every The
investors in 2025 of Konka 25 Konka01 134294
June 23 June 23 June 23 year and the Shenzhen
Group Co. Ltd. (Tranche I) 2025 2025 2028
41000 3.50% principals shall Stock
(Variety I) be repaid when Exchangeexpired.Privately placed corporate Interests shall
bonds to professional be paid every The
investors in 2025 of Konka 25 Konka03 134334 July 4 2025 July 4 2025 July 4 2028 79000 2.80%
year and the Shenzhen
Group Co. Ltd. (Tranche II) principals shall Stock
(Variety I) be repaid when Exchangeexpired."22 Konka 03" "22 Konka 05" "24 Konka 01" "24 Konka 02" "24 Konka 03" "25 Konka 01" and
"25 Konka 03" were placed privately to professional investors meeting the requirements of
Appropriate arrangement of the investors (if any) management method for investors eligibility of Shenzhen Stock Exchange which not exceeding 200persons. 22 Konka 01” is publicly issued to professional institutional investors who meet the
requirements of the "Administrative Measures for the Issuance and Trading of Corporate Bonds" and
have opened qualified A-share securities accounts with China Securities Depository and Clearing
392025 Interim Report of Konka Group Co. Ltd.
Corporation Limited Shenzhen Branch."22 Konka 03" "22 Konka 05" "24 Konka 01" "24 Konka 02" "24 Konka 03" "25 Konka 01" "25
Applicable trade mechanism Konka 03": negotiate-and-deal click-and-deal inquire-and-deal and bid-and-deal. "22 Konka 01"
match-and-deal negotiate-and-deal click-and-deal inquire-and-deal and bid-and-deal.Risk of delisting (if any) and countermeasures No
Overdue bonds
□ 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
3. Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
4. 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
Overseas Chinese Town Holdings Company provides full unconditional and irrevocable joint liability guarantee
for "22 Konka 01" "22 Konka 03" "22 Konka 05" "24 Konka 01" "24 Konka 02" "24 Konka 03" "25 Konka
01" and "25 Konka 03". During the reporting period the Company's guarantee debt repayment plan and other
debt repayment safeguard measures were implemented in accordance with the agreement and there was no
change which had no significant impact on the rights and interests of bond investors.III. Debt financing instruments of non-financial enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV. Convertible corporate bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.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 company's
Item Details of loss Reason for loss production operation and
solvency
1. During the first half of 2025 the consumer electronics industry in For consumer electronics
which the Company operates continued to experience intensifying business market competition
During the competition. Coupled with slower-than-expected new product launches is intensifying and
reporting and a product portfolio that failed to effectively align with national operational pressures are
period the subsidy policies the business incurred certain gross profit losses from mounting. For
Company's net phasing out non-tier-1 energy efficiency products. Although overall semiconductor business
profit loss expenses were reduced year-on-year gross profit generation remained although the Company hasNet profit attributable to insufficient to cover operating expenses resulting in the consumer made repeatedattributable
to the listed shareholders of
electronics segment maintaining a loss position. breakthroughs in core
company’s listed 2. During the first half of 2025 although the Company's semiconductor
technologies it remains in
shareholders companies was business achieved certain breakthroughs in technological R&D it
the initial stage of
RMB 383 remains in the initial stage of industrialization and has not yet achieved industrialization and has not
million scaled production or profitability. Consequently the semiconductor yet achieved economies of
accounting for business segment continued to operate at a loss. scale. To address the above
16.18% of the risks the Company will3. In the first half of 2025 based on the principle of prudence the
net assets. focus on developing itsCompany made a provision for asset impairment of approximately RMB primary businesses
202 million in accordance with accounting policies and estimates strengthen lean management
resulting in a decrease in profit. optimize asset allocation
402025 Interim Report of Konka Group Co. Ltd.
4. During the first half of 2025 the Company maintained a relatively accelerate the scaling
high level of interest-bearing debt resulting in substantial financial cost process of its semiconductor
burdens. The total financial expenses reached RMB 310 million during operations and effectively
the reporting period. enhance profitability.VI. Major accounting data and financial indicators of the recent 2 years of the Company as at
the end of the reporting period
Unit: RMB'0000
Item End of the reporting period End of the last year Increase/decrease
Current ratio 59.38% 63.44% -6.40%
Debt/asset ratio 94.60% 92.65% 1.95%
Quick ratio 47.58% 49.28% -3.45%
The reporting period Same period last year Increase/decrease
Net profit after deducting non-
recurring profit or loss -102750.21 -110307.86 6.85%
EBITDA/debt ratio 1.56% -2.98% 4.54%
Times interest earned 0.01 -3.54 100.28%
Times interest earned of cash -1.16 -0.24 -383.33%
Times interest earned of
EBITDA 1.22 -2.34 152.14%
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage 100.00% 100.00% 0.00%
412025 Interim Report of Konka Group Co. Ltd.
Section VIII Financial Report
I. Independent Auditor’s Report
Whether the interim report has been audited.□ Yes √ No
The Company's interim report has not been audited.II. Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by: Konka Group Co. Ltd. June 30 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 3825784922.81 4115767247.73
Settlement reserve
Interbank loans granted
Trading financial assets 1270907253.85 286648129.34
Derivative financial assets
Notes receivable 70665804.66 169675176.16
Accounts receivable 1384377310.43 1458923066.70
Receivables financing 115550888.61 63943324.53
Prepayments 93386614.43 124748412.59
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 958976091.29 989245120.86
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 2481187731.50 2694648186.93
Including: data resources
Contract assets 2290923.90 2630508.60
Assets held for sale
Current portion of non-current assets
Other current assets 2274758265.56 2168400012.47
Total current assets 12477885807.04 12074629185.91
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term Receivables
Long-term equity investments 4128207439.61 4728360853.49
Investments in other equity instruments 16114932.00 16114932.00
Other non-current financial assets 1792688478.25 1802409887.89
422025 Interim Report of Konka Group Co. Ltd.
Investment property 1598604378.45 1650843239.51
Fixed Assets 4857130116.51 5005836928.31
Construction in progress 914367645.71 873042499.04
Productive living assets
Oil and gas assets
Right-of-use assets 140748193.84 178185679.35
Intangible Assets 964782626.98 988045525.76
Including: data resources
Development costs
Including: data resources
Goodwill 22196735.11 22196735.11
Long-term prepaid expense 503837553.14 532181161.63
Deferred tax assets 1385931523.65 1392239301.87
Other non-current assets 1130991730.91 1148677970.47
Total non-current assets 17455601354.16 18338134714.43
Total assets 29933487161.20 30412763900.34
Current liabilities:
Short-term borrowings 6262249010.16 5741171468.26
Borrowings from the central bank
Interbank loans obtained
Trading financial assets
Derivative financial liabilities
Notes payable 1100044296.01 1150310856.70
Accounts payable 2614629890.34 2774615788.24
Advances from customers 2429184.01 3481262.87
Contract liabilities 490890933.64 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 178142522.24 243731849.78
Taxes payable 46991015.46 94612710.58
Other payables 1546369612.19 1676154887.59
Including: Interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 8724499596.91 6655534395.19
Other current liabilities 46198945.50 69876531.91
Total current liabilities 21012445006.46 19033045421.09
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 3106775649.91 5530649801.93
Bonds payable 2705431886.81 2295193501.05
Including: Preferred shares
432025 Interim Report of Konka Group Co. Ltd.
Perpetual bonds
Lease Liabilities 118228602.85 146561588.52
Long-term payables 4350687.61 5504548.24
Long-term employee benefits payable 4562989.27 4608659.47
Provisions 442681401.21 428433732.19
Deferred income 387987588.75 393437007.37
Deferred income tax liabilities 336495090.31 133299175.48
Other non-current liabilities 196983826.75 207378781.21
Total non-current liabilities 7303497723.47 9145066795.46
Total liabilities 28315942729.93 28178112216.55
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 388319626.07 512840575.73
Less: Treasury stock
Other comprehensive income -12357555.00 -9040290.32
Specific reserve 14512553.87 11249678.53
Surplus reserves 1244180364.24 1244180364.24
General risk reserves
Retained earnings -2180695576.26 -1797506898.08
Total equity attributable to owners of the parent company 1861904820.92 2369668838.10
Non-controlling interests -244360389.65 -135017154.31
Total owners’ equity 1617544431.27 2234651683.79
Total liabilities and owners’ equity 29933487161.20 30412763900.34
Legal representative: WU Jianjun CFO: YU Huiliang Head of the financial department: PING Heng
2. Balance Sheet of the parent company
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary assets 2167559598.23 2310021016.85
Trading financial assets 1270907253.85 286648129.34
Derivative financial assets
Notes receivable 2555739.09 18077864.64
Accounts receivable 2791326592.06 2783399610.31
Receivables financing
Prepayments 4329649063.58 5060895887.42
Other receivables 7837705246.73 8210096432.41
Including: Interest receivable
Dividends receivable 395938176.42 397729468.60
Inventories 130345724.19 143981116.62
Including: data resources
Contract assets
Assets held for sale
442025 Interim Report of Konka Group Co. Ltd.
Current portion of non-current assets
Other current assets 1699832615.43 1621740187.04
Total current assets 20229881833.16 20434860244.63
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term Receivables
Long-term equity investments 8236263800.79 8801915477.55
Investments in other equity instruments 10213810.20 10213810.20
Other non-current financial assets 396043071.29 396353137.96
Investment property 854921619.62 873925486.40
Fixed Assets 396697122.99 413605136.94
Construction in progress 11023604.87 12762103.76
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible Assets 27136950.93 36845184.32
Including: data resources
Development costs
Including: data resources
Goodwill
Long-term prepaid expense 28262680.47 32966195.77
Deferred tax assets 667646526.22 667646526.22
Other non-current assets 1464222.30 969222.30
Total non-current assets 10629673409.68 11247202281.42
Total assets 30859555242.84 31682062526.05
Current liabilities:
Short-term borrowings 2658522305.58 2312074875.00
Trading financial assets
Derivative financial liabilities
Notes payable 20614019.24 94034764.53
Accounts payable 3686344602.04 6342200859.52
Advances from customers
Contract liabilities 3517796292.80 2503838527.97
Employee benefits payable 22540300.83 27648867.42
Taxes payable 10483803.76 5299228.44
Other payables 4182757539.95 4002505102.69
Including: Interest payable
Dividends payable
Liabilities directly associated with assets
held for sale
Current portion of non-current liabilities 8502915561.63 6441534654.07
Other current liabilities 5896843.40 11512394.96
Total current liabilities 22607871269.23 21740649274.60
Non-current liabilities:
Long-term borrowings 2016000000.00 4371231706.59
452025 Interim Report of Konka Group Co. Ltd.
Bonds payable 2705431886.81 2295193501.05
Including: Preferred shares
Perpetual bonds
Lease Liabilities
Long-term payables
Long-term employee benefits payable
Provisions 346428842.60 346376800.41
Deferred income 18543821.55 42829889.81
Deferred income tax liabilities 245451293.94 34882051.56
Other non-current liabilities 46397627.49 44189363.15
Total non-current liabilities 5378253472.39 7134703312.57
Total liabilities 27986124741.62 28875352587.17
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 213859721.31 339889142.56
Less: Treasury stock
Other comprehensive income -1281096.83 -1281096.83
Specific reserve
Surplus reserves 1260024039.76 1260024039.76
Retained earnings -1007117571.02 -1199867554.61
Total owners’ equity 2873430501.22 2806709938.88
Total liabilities and owners’ equity 30859555242.84 31682062526.05
3. Consolidated Income Statement
Unit: RMB
Item 1H25 1H24
I. Revenue 5247507849.27 5412530372.47
Including: operating revenue 5247507849.27 5412530372.47
Interest revenue
Insurance premium income
Handling charge and commission income
II. Costs and expenses 6113653586.34 6381475426.88
Including: cost of sales 4982943214.69 5115359512.44
Interest costs
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount of insurance liability reserve
withdrawn
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 52857828.76 64692935.11
Selling expense 305525414.66 389986556.84
462025 Interim Report of Konka Group Co. Ltd.
Administrative expense 273646470.76 315946020.02
R&D expense 187951295.68 214578026.81
Finance costs 310729361.79 280912375.66
Including: Interest expense 350360105.59 407018728.71
Interest revenue 72105599.49 116244724.79
Plus: Other income 40970737.77 56768387.57
Investment income ("-" for losses) 540347018.43 5047444.22
Including: Share of profit or loss of joint
ventures and associates -42498270.14 -41296057.12
Income from the derecognition of
financial assets at amortized cost (“-” for -2541005.90 -1728018.83
loss)
Exchange gains ("-" for losses)
Net exposure hedging gains ("-" for
losses)
Gains from fair value changes ("-" for
losses) 173409194.85 -179800523.76
Losses from credit impairment ("-" for
losses) -117092417.76 -163079433.18
Losses from assets impairment ("-" for
losses) -85403855.86 -92012866.95
Gains from disposal of assets ("-" for
losses) 31513481.94 590329.38
III. Operating profit ("-" for losses) -282401577.70 -1341431717.13
Plus: Non-operating revenue 9302209.51 15773523.89
Less: Non-operating expense 3650200.98 6155804.84
IV. Total profit ("-" for total losses) -276749569.17 -1331813998.08
Less: Income tax expense 220369507.92 -51275843.13
V. Net profit ("-" for net losses) -497119077.09 -1280538154.95
(I) By operating continuity
1. Net profit from continued operation ("-"
for net loss) -497119077.09 -1280538154.95
2. Net profit from discontinued operations
("-" for net loss)
(II) By ownership
1. Net profit attributable to shareholders
of the parent company ("-" for net loss) -383328019.43 -1087581842.55
2. Minority interest income ("-" for net
loss) -113791057.66 -192956312.40
VI. Other comprehensive income net of
tax -3731546.01 -2253474.92
Attributable to owners of the parent
company -3317264.68 -681509.64
(I) Items that will not be reclassified to
profit or loss
1. Changes caused by remeasurements on
defined benefit schemes
2. Other comprehensive income that will
not be reclassified to profit or loss under
the equity method
3. Changes in the fair value of investments
in other equity instruments
472025 Interim Report of Konka Group Co. Ltd.
4. Changes in the fair value arising from
changes in own credit risk
5. Others
(II) Items that will be reclassified to profit
or loss -3317264.68 -681509.64
1. Other comprehensive income that will
be reclassified to profit or loss under the 35170.29 -83919.23
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 -3352434.97 -597590.41
statements
7. Others
Attributable to non-controlling interests -414281.33 -1571965.28
VII. Total comprehensive income -500850623.10 -1282791629.87
Attributable to owners of the parent
company -386645284.11 -1088263352.19
Attributable to non-controlling interests -114205338.99 -194528277.68
VIII. Earnings per share:
(I) Basic earnings per share -0.1592 -0.4517
(II) Diluted earnings per share -0.1592 -0.4517
Legal representative: WU Jianjun CFO: YU Huiliang Head of the financial department: PING Heng
4. Income Statement of the parent company
Unit: RMB
Item 1H25 1H24
I. Operating revenue 568971528.57 915335790.52
Less: cost of sales 543252254.22 911097113.96
Taxes and surcharges 8147414.25 8494960.13
Selling expense 40412184.01 49651116.89
Administrative expense 75195768.11 93947054.64
R&D expense 10354660.50 13571658.64
Finance costs 265906735.02 216389535.25
Including: Interest expense 346218969.22 378248970.66
Interest revenue 106403950.57 153071010.77
Plus: Other income 6411326.39 7605313.33
Investment income ("-" for losses) 581639183.08 32020268.53
Including: Share of profit or loss of joint
ventures and associates -11151203.25 9290355.87
Income on termination of recognition of
financial assets measured at amortized -226103.98 -152875.26
costs ("-" for losses)
Net exposure hedging gains ("-" for
losses)
482025 Interim Report of Konka Group Co. Ltd.
Gains from fair value changes ("-" for
losses) 177700537.82 -174699491.47
Losses from credit impairment ("-" for
losses) -2794258.52 -12086636.46
Losses from assets impairment ("-" for
losses) 3124627.22 -5180066.67
Gains from disposal of assets ("-" for
losses) 11624645.93 -110.13
II. Operating profits ("-" for losses) 403408574.38 -530156371.86
Plus: Non-operating revenue 536714.33 2512547.44
Less: Non-operating expense 642354.53 593962.79
III. Total profits ("-" for total losses) 403302934.18 -528237787.21
Less: Income tax expense 210569242.38 -43674872.87
IV. Net profit ("-" for net loss) 192733691.80 -484562914.34
(I) Net profit from continued operations
("-" for net loss) 192733691.80 -484562914.34
(II) Net profit from discontinued
operations ("-" for net loss)
V. Other comprehensive income net of
tax
(I) Items that will not be reclassified to
profit or loss
1. Changes caused by remeasurements on
defined benefit schemes
2. Other comprehensive income that will
not be reclassified to profit or loss under
the equity method
3. Changes in the fair value of investments
in other equity instruments
4. Changes in the fair value arising from
changes in own credit risk
5. Others
(II) Items that will be reclassified to profit
or loss
1. Other comprehensive income that will
be reclassified to profit or loss 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 192733691.80 -484562914.34
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
492025 Interim Report of Konka Group Co. Ltd.
5. Consolidated Statement of Cash Flows
Unit: RMB
Item 1H25 1H24
I. Cash flows from operating activities:
Proceeds from sale of commodities and
rendering of services 4368084284.49 4267852047.59
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 policy holders
Interest handling charges 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 56567647.38 139455404.70
Cash generated from other operating
activities 215519884.28 210684546.43
Subtotal of cash generated from operating
activities 4640171816.15 4617991998.72
Payments for commodities and services 4056223786.07 3502746057.91
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original insurance
contracts
Net increase in interbank loans granted
Interest handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 735398262.13 862103567.56
Taxes paid 172911436.91 226961849.89
Cash used in other operating activities 351261761.97 465518888.49
Subtotal of cash used in operating
activities 5315795247.08 5057330363.85
Net cash generated from/used in operating
activities -675623430.93 -439338365.13
II. Cash flows from investing activities:
Proceeds from disinvestment 210644253.53 28078887.19
Return on investment 12662010.65 17454288.86
Net proceeds from the disposal of fixed 73915123.88 1648546.24
502025 Interim Report of Konka Group Co. Ltd.
assets intangible assets and other long-
lived assets
Net proceeds from the disposal of
subsidiaries and other business units 4221401.00
Cash generated from other investing
activities 858150.68 23144979.61
Subtotal of cash generated from investing
activities 302300939.74 70326701.90
Payments for the acquisition of fixed
assets intangible assets and other long- 230479770.06 383427125.49
lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 21122140.00 2127401.00
Subtotal of cash used in investing
activities 251601910.06 385554526.49
Net cash generated from/used in investing
activities 50699029.68 -315227824.59
III. Cash flows from financing activities:
Capital contributions received 3000000.00 391891.90
Including: Capital contributions by non-
controlling interests to subsidiaries 3000000.00 391891.90
Borrowings raised 5540288536.51 9415119545.51
Cash generated from other financing
activities 1386679814.26 354016478.39
Subtotal of cash generated from financing
activities 6929968350.77 9769527915.80
Repayment of borrowings 5026999842.01 9327233269.01
Interest and dividends paid 268919859.68 270910689.62
Including: Dividends paid by subsidiaries
to non-controlling interests 926283.41 126628.99
Cash used in other financing activities 1296921506.67 720237854.70
Subtotal of cash used in financing
activities 6592841208.36 10318381813.33
Net cash generated from/used in financing
activities 337127142.41 -548853897.53
IV. Effect of foreign exchange rates
changes on cash and cash equivalents 7018961.86 7010247.78
V. Net increase in cash and cash
equivalents -280778296.98 -1296409839.47
Plus: beginning balance of cash and cash
equivalents 2783177476.45 5674784349.55
VI. Ending balance of cash and cash
equivalents 2502399179.47 4378374510.08
512025 Interim Report of Konka Group Co. Ltd.
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 1H25 1H24
I. Cash flows from operating activities:
Proceeds from sale of commodities and
rendering of services 1982717488.59 1602584444.18
Tax rebates 0.00 34492177.78
Cash generated from other operating
activities 52168761.02 71344066.52
Subtotal of cash generated from operating
activities 2034886249.61 1708420688.48
Payments for commodities and services 2346004439.65 2021282615.27
Cash paid to and for employees 70698995.67 113835388.28
Taxes paid 8574471.84 22683808.32
Cash used in other operating activities 199281847.85 161079943.22
Subtotal of cash used in operating
activities 2624559755.01 2318881755.09
Net cash generated from/used in operating
activities -589673505.40 -610461066.61
II. Cash flows from investing activities:
Proceeds from disinvestment 209745654.53 7873623.97
Return on investment 11248820.28 13490000.00
Net proceeds from the disposal of fixed
assets intangible assets and other long- 27269795.73 20138.36
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities 939791023.76 3388426673.22
Subtotal of cash generated from investing
activities 1188055294.30 3409810435.55
Payments for the acquisition of fixed
assets intangible assets and other long- 3253950.15 17759814.73
lived assets
Payments for investments 13000000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 767252140.00 3417504221.91
Subtotal of cash used in investing
activities 770506090.15 3448264036.64
Net cash generated from/used in investing
activities 417549204.15 -38453601.09
III. Cash flows from financing activities:
Capital contributions received
Borrowings raised 4003609738.88 7632107916.66
Cash generated from other financing
activities 4122175002.73 5179636847.74
Subtotal of cash generated from financing
activities 8125784741.61 12811744764.40
Repayment of borrowings 3579806940.27 8221706940.23
522025 Interim Report of Konka Group Co. Ltd.
Interest and dividends paid 296315030.56 289317772.25
Cash used in other financing activities 4068154539.15 4969550553.21
Subtotal of cash used in financing
activities 7944276509.98 13480575265.69
Net cash generated from/used in financing
activities 181508231.63 -668830501.29
IV. Effect of foreign exchange rates
changes on cash and cash equivalents 2283185.17 3479996.51
V. Net increase in cash and cash
equivalents 11667115.55 -1314265172.48
Plus: beginning balance of cash and cash
equivalents 1581749278.38 4263319288.76
VI. Ending balance of cash and cash
equivalents 1593416393.93 2949054116.28
532025 Interim Report of Konka Group Co. Ltd.
7. Consolidated Statements of Changes in Owners’ Equity
Current amount
Unit: RMB
1H25
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Non-controlling Total owners’ equity
Share capital Capital reserves Treasury comprehensive Specific reserve Surplus reserves risk Retained earnings Others Subtotal interestsPreferred Perpetual
shares bonds Others stock income reserves
I. Balance as at the end of the
prior year 2407945408.00 512840575.73 -9040290.32 11249678.53 1244180364.24 -1797506898.08 2369668838.10 -135017154.31 2234651683.79
Plus: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Others
II. Balance as at the beginning of
the year 2407945408.00 512840575.73 -9040290.32 11249678.53 1244180364.24 -1797506898.08 2369668838.10 -135017154.31 2234651683.79
III. Increase/ decrease in the
period (“-” for decrease) -124520949.66 -3317264.68 3262875.34 -383188678.18 -507764017.18 -109343235.34 -617107252.52
(I) Total comprehensive income -3317264.68 -383328019.43 -386645284.11 -114205338.99 -500850623.10
(II) Capital increased and reduced
by owners -124520949.66 139341.25 -124381608.41 2798342.84 -121583265.57
1. Ordinary shares increased by
owners 2987476.54 2987476.54
2. Capital increased by holders of
other equity instruments
3. Share-based payments included
in owners’ equity
4. Others -124520949.66 139341.25 -124381608.41 -189133.70 -124570742.11
(III) Profit distribution 926283.41 926283.41
1. Appropriation to surplus
reserves
2. Appropriation to general risk
reserves
3. Appropriation to owners (or
shareholders) 926283.41 926283.41
4. Others
(IV) Transfers within owners’
equity
1. Increase in capital (or share
capital) from capital reserves
542025 Interim Report of Konka Group Co. Ltd.
2. Increase in capital (or share
capital) from surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserves 3262875.34 3262875.34 1137477.40 4400352.74
1. Increase in the period 4266750.42 4266750.42 1637242.18 5903992.60
2. Used in the period 1003875.08 1003875.08 499764.78 1503639.86
(VI) Others
IV. Balance as at the end of the
period 2407945408.00 388319626.07 -12357555.00 14512553.87 1244180364.24 -2180695576.26 1861904820.92 -244360389.65 1617544431.27
Amount of last year
Unit: RMB
1H24
Equity attributable to owners of the parent company
Item Other equity instruments Less: Other General Non-controlling Total owners’ equity
Share capital Preferred Perpetual Capital reserves Treasury comprehensive
Specific
reserve Surplus reserves risk Retained earnings Others Subtotal
interests
shares bonds Others stock income reserves
I. Balance as at the end of the prior
year 2407945408.00 526499506.76 -13443558.44 4657488.24 1244180364.24 1474561975.85 5644401184.65 262221679.49 5906622864.14
Plus: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Others
II. Balance as at the beginning of
the year 2407945408.00 526499506.76 -13443558.44 4657488.24 1244180364.24 1474561975.85 5644401184.65 262221679.49 5906622864.14
III. Increase/ decrease in the period
(“-” for decrease) -4789206.64 -681509.64 1958049.12 -1087581842.55 -1091094509.71 -164890039.08 -1255984548.79
(I) Total comprehensive income -681509.64 -1087581842.55 -1088263352.19 -194528277.68 -1282791629.87
(II) Capital increased and reduced
by owners -4789206.64 -4789206.64 29083500.46 24294293.82
1. Ordinary shares increased by
owners 391891.90 391891.90
2. Capital increased by holders of
other equity instruments
3. Share-based payments included
552025 Interim Report of Konka Group Co. Ltd.
in owners’ equity
4. Others -4789206.64 -4789206.64 28691608.56 23902401.92
(III) Profit distribution
1. Appropriation to surplus
reserves
2. Appropriation to general risk
reserves
3. Appropriation to owners (or
shareholders)
4. Others
(IV) Transfers within owners’
equity
1. Increase in capital (or share
capital) from capital reserves
2. Increase in capital (or share
capital) from surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit
schemes transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserves 1958049.12 1958049.12 554738.14 2512787.26
1. Increase in the period 2537402.71 2537402.71 589725.35 3127128.06
2. Used in the period 579353.59 579353.59 34987.21 614340.80
(VI) Others
IV. Balance as at the end of the
period 2407945408.00 521710300.12 -14125068.08 6615537.36 1244180364.24 386980133.30 4553306674.94 97331640.41 4650638315.35
562025 Interim Report of Konka Group Co. Ltd.
8. Statements of Changes in Owners’ Equity of the parent company
Current amount
Unit: RMB
1H25
Item Other equity instruments
Share capital Capital reserves Less: Treasury Other comprehensive SpecificPreferred Perpetual stock income reserve Surplus reserves Retained earnings Others Total owners’ equity
shares bonds Others
I. Balance as at the end of the prior year 2407945408.00 339889142.56 -1281096.83 1260024039.76 -1199867554.61 2806709938.88
Plus: Adjustment for change in accounting policy
Adjustment for correction of previous error
Others
II. Balance as at the beginning of the year 2407945408.00 339889142.56 -1281096.83 1260024039.76 -1199867554.61 2806709938.88
III. Increase/ decrease in the period (“-” for
decrease) -126029421.25 192749983.59 66720562.34
(I) Total comprehensive income 192733691.80 192733691.80
(II) Capital increased and reduced by owners -126029421.25 -126029421.25
1. Ordinary shares increased by owners
2. Capital increased by holders of other equity
instruments
3. Share-based payments included in owners’
equity
4. Others -126029421.25 -126029421.25
(III) Profit distribution 16291.79 16291.79
1. Appropriation to surplus reserves
2. Appropriation to owners (or shareholders)
3. Others 16291.79 16291.79
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital) from
capital reserves
2. Increase in capital (or share capital) from
surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit schemes
transferred to retained earnings
5. Other comprehensive income transferred to
retained earnings
6. Others
572025 Interim Report of Konka Group Co. Ltd.
(V) Special reserves
1. Increase in the period
2. Used in the period
(VI) Others
IV. Balance as at the end of the period 2407945408.00 213859721.31 -1281096.83 1260024039.76 -1007117571.02 2873430501.22
Amount of last year
Unit: RMB
1H24
Item Other equity instruments
Share capital Capital reserves Less: Treasury Other comprehensivePreferred Perpetual stock income Specific reserve Surplus reserves Retained earnings Others Total owners’ equity
shares bonds Others
I. Balance as at the end of the prior year 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
Plus: Adjustment for change in accounting
policy
Adjustment for correction of previous error
Others
II. Balance as at the beginning of the year 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
III. Increase/ decrease in the period (“-” for
decrease) -11288034.03 -484562914.34 -495850948.37
(I) Total comprehensive income -484562914.34 -484562914.34
(II) Capital increased and reduced by owners -11288034.03 -11288034.03
1. Ordinary shares increased by owners
2. Capital increased by holders of other equity
instruments
3. Share-based payments included in owners’
equity
4. Others -11288034.03 -11288034.03
(III) Profit distribution
1. Appropriation to surplus reserves
2. Appropriation to owners (or shareholders)
3. Others
(IV) Transfers within owners’ equity
1. Increase in capital (or share capital) from
capital reserves
2. Increase in capital (or share capital) from
surplus reserves
3. Loss offset by surplus reserves
4. Changes in defined benefit schemes
582025 Interim Report of Konka Group Co. Ltd.
transferred to retained earnings
5. Other comprehensive income transferred to
retained earnings
6. Others
(V) Special reserves
1. Increase in the period
2. Used in the period
(VI) Others
IV. Balance as at the end of the period 2407945408.00 329941716.72 -1399371.64 1260024039.76 66225932.10 4062737724.94
592025 Interim Report of Konka Group Co. Ltd.
III. Basic information of the Company
1. Konka Group Co. Ltd. (hereinafter referred to as “the Company” and 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 ChinaShenzhen Special Economic Zone Branch. On August 29 1995 the Company was renamed to “Konka Group Co.Ltd.” (unified social credit code: 914403006188155783) with its main business electronic industry. Now the
headquarters locates in 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 increased share capital and new shares issued over the years as
of June 30 2025 the Company issued a total of 2407945408.00 shares (denomination of RMB 1 per share) with
a registered capital of RMB 2407945408.00.
3. The nature of the company's business and main operating activities
The Group was mainly engaged in consumer electronics and semiconductor businesses conducting the production
and sales of colour TVs white goods optoelectronic display storage and printed circuit Boards etc.
4. The financial statements were approved for disclosure by the Board of Directors of the Company on August 29
2025.
IV. Scope of consolidated financial statements
The consolidated financial statements of the Group cover 104 subsidiaries such as Shenzhen Konka Electronic
Technology Co. Ltd. Anhui Konka Electronics Co. Ltd. and Dongguan Konka Electronics Co. Ltd. Compared
with last year 1 subsidiary namely Kangrong Jiayuan Technology (Zhejiang) Co. Ltd. is excluded due to equity
transfer in the current period.For details please refer to Note X "Changes in the Consolidation Scope" and Note XI "Equity in Other Entities".A check list of corporate names and their abbreviations mentioned in this Report
No. 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
4 Nantong Hongdin Smart Technology Co. Ltd. Nantong Hongdin
5 Shenzhen Kangcheng Technology Innovation and DevelopmentCo. Ltd. Shenzhen Kangcheng
6 Xiaojia Technology Co. Ltd. Xiaojia Technology
7 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun
8 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang Kangshun Renewable
9 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
10 Chuzhou Konka Precision Intelligent Manufacturing TechnologyCo. 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. Konka Hongye Electronics
15 Boluo Konka Precision Technology Co. Ltd. Boluo Precision
16 Anhui Konka Tongchuang Electrical Appliances Co. Ltd. Anhui Tongchuang
602025 Interim Report of Konka Group Co. Ltd.
No. Name Abbreviation
17 Jiangsu Konka Smart Appliance 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 Technology 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 Electronic
31 Tianjin Konka Technology Co. Ltd. Tianjin Konka
32 Suining Konka Industrial Park Development Co. Ltd. Suining Konka Industrial Park
33 Suining Konka Electronic Technological Innovation Co. Ltd. Suining Electronic TechnologicalInnovation
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 Konka Intelligent
39 Shenzhen Konka Semiconductor Technology Co. Ltd. Shenzhen Konka Semiconductor
40 Chongqing Konka Technology Development Co. Ltd. Chongqing Konka
41 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory (Shenzhen)
42 Kowin Memory Technology (Hong Kong) Co. Limited Kowin Memory (Hong Kong)
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 Konka Mobility Co. Limited Konka Mobility
612025 Interim Report of Konka Group Co. Ltd.
No. Name Abbreviation
53 Dongguan Konka Electronics Co. Ltd. Dongguan Konka
54 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart
55 Chongqing Konka Optoelectronic 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 TransparentSubstrate
61 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystalline
62 Shaanxi Konka Smart Home Appliance Co. Ltd. Shanxi Konka Intelligent
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 Sichuan Kangjiatong Technology Co. Ltd. Kangjiatong
69 Nanjing Konka Smart Appliance Co. Ltd. Nanjing Konka Smart
70 Hainan Konka Technology Co. Ltd. Hainan Konka Technology
71 Konka Ventures Development (Shenzhen) Co. Ltd. Konka Ventures
72 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator
73 Yantai Konka Healthcare Enterprise Service Co. Ltd. Yantai Konka
74 Guiyang Konka Enterprise 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 Hongdin International Trading Limited Hongdin Trading
79 Konka NorthAmerica LLC Konka North America
80 Kanghao Technology Co. Ltd. Kanghao Technology
81 Hongdin Invest Development Limited Hongdin Investment
82 Chain Kingdom Memory Technologies Co. Limited Chain Kingdom MemoryTechnologies
83 Chain Kingdom Semiconductor (Shaoxing) Co. Ltd. Chain Kingdom Semiconductor(Shaoxing)
84 Hongjet (Hong Kong) Company Limited Hongjet
85 Chongqing Xinyuan Semiconductor Co. Ltd. Chongqing XinyuanSemiconductor
86 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
622025 Interim Report of Konka Group Co. Ltd.
No. Name Abbreviation
87 Shenzhen Kanghong Dongsheng Investment Partnership (LimitedPartnership) Kanghong Dongsheng
88 Guizhou Konka New Material Technology Co. Ltd. Guizhou Konka New MaterialTechnology
89 Konka Smart Home Appliance (Shanxi) Industry DevelopmentCo. Ltd. Shanxi Smart Home Appliance
90 Guizhou Kanggui Material Technology Co. Ltd. Guizhou Kanggui MaterialTechnology
91 Nantong Kanghai Technology Industry Development Co. Ltd. Nantong Kanghai
92 Chongqing Kangyiyun Business Operation Management Co. Ltd. Chongqing Kangyiyun
93 Jiangxi Konka High-tech Park Operation and Management Co.Ltd. Jiangxi Konka High-tech Park
94 Shangrao Konka Electronic Technology Innovation Co. Ltd. Shangrao Konka ElectronicTechnology Innovation
95 Zhejiang Konka Electronics Co. Ltd. Zhejiang Konka Electronic
96 Zhejiang Konka Technology Industry Development Co. Ltd. Zhejiang Konka TechnologyIndustry
97 Xi'an Konka Intelligent 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 IntelligentTechnology
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
V. Basis for the preparation of financial statements
1. Basic for the preparation
The Group's financial statements were prepared in accordance with the Accounting Standards for Business
Enterprises promulgated by the Ministry of Finance as well as guidelines on accounting standards for business
enterprises announcements on interpreting the accounting standards for business enterprises 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 China Securities Regulatory Commission (hereinafter referred to as the
"CSRC").
2. Going concern
The Group evaluated the going-concern capacity for the 12 months from the end of the reporting period and
found no matters or circumstances that raised significant doubts about the going-concern capacity. Therefore the
financial statements are prepared on a going concern basis.
632025 Interim Report of Konka Group Co. Ltd.
VI. 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 measurement etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company 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
on June 30 2025 business results and cash flows and other relevant information for the first Half of 2025.
2. Fiscal period
The Group’s fiscal year starts on January 1 and ends on December 31 of every year according to 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 VI. 10(2) Conversion of foreign currency
financial statements.
5. Methodology for determining materiality criteria and basis for selection
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 Location of disclosure of this
materiality standard matter in the notes to the Methodology for determining materiality
judgments present financial statements criteria and basis for selection
Significant individually bad Note VIII.4. Accounts
debt provisioned receivables receivable (2) Individual amount exceeding RMB50000000
Receivables with significant
amount of bad debt provision Note VIII.4. Accounts
recovered or reversed during the receivable (3) Individual amount exceeding RMB10 million
current period
Write-off of significant Note VIII.4. Accounts
receivables in the current period receivable (4) Individual amount exceeding RMB10 million
Significant accounts payable Note VIII.26. Accounts
aged over 1 year payable Individual amount exceeding RMB10 million
Significant receipts in advance
and contractual
liabilities/projected Note VIII.27; Note VIII.28;
liabilities/other payables aged Note VIII.29; Note VIII.39
Individual amount exceeding RMB10 million
over 1 year
Significant construction in Note VIII.16. Construction in Increase or decrease in a single asset during the
progress project progress (2) current period or a balance exceeding RMB0.1billion
6. Accounting treatment methods for business combinations under the same control or not
under the same control
642025 Interim Report of Konka Group Co. Ltd.
(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 under different 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 and 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 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 was 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 profit and loss other comprehensive
income and total comprehensive income shall be respectively listed in the consolidated financial statement
"Minority shareholders' equity minority shareholders' profit and loss 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 merger 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.If the equity of the investee under the same control is acquired in stages through multiple transactions to
eventually result in a business combination additional disclosures of the treatment in the consolidated financial
statements shall be made in the reporting period in which control is obtained. For example if the equity of an
investee under the same control is acquired in stages through multiple transactions to eventually result in a
business combination the consolidated financial statements shall be adjusted as if the current state of existence
had been in place since the time when the ultimate controller initially obtained control. When preparing
comparative financial statements the relevant assets and liabilities of the combined entity shall be incorporated
into the comparative financial statements of the Group's consolidated financial statements no earlier than the date
when both the Group and the combined entity first came under the control of the same ultimate controller. The
resulting increase in net assets from the combination shall be adjusted under the relevant items within owners'
equity in the comparative financial statements. To avoid double counting of the net asset value of the combined
party for long-term equity investments held by the Group prior to the combination the relevant profit or loss
652025 Interim Report of Konka Group Co. Ltd.
other comprehensive income and other changes in net assets that have been recognized between the later of the
acquisition date of the original equity and the date on which the Company and the combined party were under
common control and the combination date shall be offset against the beginning retained earnings and current
profit or loss of comparative statements period.For subsidiaries acquired through business combination under the 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.If the equity of the investee not under the same control is acquired in stages through multiple transactions to
eventually result in a business combination additional disclosures of the treatment in the consolidated financial
statements shall be made in the reporting period in which control is obtained. For example if the equity of an
investee not under the same control is acquired in stages through multiple transactions to eventually result in a
business combination when preparing the consolidated financial statements the Company shall remeasure the
acquiree's equity it held before the acquisition date at its fair value on the acquisition date and the difference
between its fair value and book value shall be recognized as investment income for the current period; if the
equity in the acquiree held prior to the relevant acquisition date is related to other comprehensive income
accounted for under the equity method and other changes in owners' equity other than net profit or loss other
comprehensive income and profit distribution the equity is transferred to investment income for the period in
which the acquisition date falls except for other comprehensive income due to the remeasurement of the
investee's net liabilities under defined benefit plans or changes in net assets.In the consolidated financial statements the difference between the proceeds from partial disposal of long-term
equity investments in the subsidiary and the share of net assets of the subsidiary attributable to the Group
(calculated from the acquisition date or the combination date) corresponding to the disposal of long-term equity
investments without losing control shall be charged against capital premium or share premium; when capital
reserve is insufficient to offset the retained earnings shall be adjusted.When the Group loses the control over the investee due to disposal of partial equity investments or other reasons
in the preparation of the consolidated financial statements the remaining equity investments will be re-measured
by the Group at fair value on the date of loss of the control. The difference of total amount of the consideration
from disposal of equities plus the fair value of the remaining equities less the shares calculated at the original
shareholding ratio in net assets of the original subsidiary which are continuously calculated as of the acquisition
date or combination date is included in the investment gain or loss for the current period at the loss of control and
at the same time offset the goodwill. Other comprehensive incomes associated with the equity investments of the
original subsidiary are transferred into investment gain or loss for the current period when control is lost.Where the equity investment in the subsidiary is disposed of by the Group step by step through multiple
transactions until the loss of control and the transactions in which the equity investment in the subsidiary is
disposed of until the loss of control are a package of transactions each transaction shall be accounted for as one
transaction in which the subsidiary is disposed of and the control is lost; however the difference between the
disposal price and the net asset share of the subsidiary corresponding to the disposal of the investment in each
case prior to the loss of control is recognized in the consolidated financial statements as other comprehensive
income and transferred to investment profit or loss in the period in which the loss of control occurs.
8. Classification of joint arrangements and accounting treatment of joint operations
The Group classifies joint arrangements into 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 or
sells the assets not constituting business with the joint operation the Group only recognized the share of the other
joint operators in the gains and 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.
662025 Interim Report of Konka Group Co. Ltd.
10. Foreign currency businesses and translation of foreign currency financial statements
(1) Foreign currency transaction
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 conversion difference was directly included in the current profit or
loss.
(2) Translation of foreign currency financial statement
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 was presented in other comprehensive income item. The foreign currency cash flow
was 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 was independently presented in cash flow
statement.
11. Financial instruments
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or liability when it becomes a party of the relevant financial instrument
contract.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.In case of current obligation of financial liabilities (or partial financial liabilities) being terminated 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 contact 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. In case of material alteration of contract
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. In case of
derecognition of financial liabilities (partial financial liabilities) the Group includes the balance between its book
value and payment consideration into the current profit or loss.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 profit or loss 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 classified the financial assets meeting the following conditions at the same time as financial assets at
amortized cost: * The business mode of the Group to manage the financial assets targets at collecting the
contractual cash flow. * The contract of the financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. These financial assets
are initially measured at fair value and relevant transaction cost is included into the initially recognized amount;
672025 Interim Report of Konka Group Co. Ltd.
subsequent measurement is carried out at amortized cost. Except for those designated to be 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 gain and loss as well as gains or losses arising from derecognition
shall be recorded into the current profit or loss.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 contract of the financial
assets stipulates that the cash flow generated in the specific date is the payment of the interest based on the
principal and outstanding principal amount. These financial assets initially measured at fair value and relevant
transaction cost shall be included into the initial recognized amount. Except for those designated as hedged items
any other gains or losses arising from such financial assets except for credit impairment losses or gains exchange
profit or loss and interest on the financial asset calculated using the effective interest rate method is 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 profit or loss.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
profit and loss other relevant gains and losses (including exchange profit or loss) are included in other
comprehensive income and shall not be subsequently transferred to the current profit or loss. Except for dividends
(excluding those belonging to recovery of investment cost) which shall be recorded into the current profit or loss
other relevant gains and losses (including exchange gains and losses) shall be recorded into other comprehensive
income and cannot be transferred into the current profit or loss subsequently. When derecognized the
accumulated gains or losses originally recorded into other comprehensive income shall be transferred out into
retained earnings. Equity instrument investments measured at fair value through other comprehensive income
included: Equity investments to be held in the long term as planned by the Group for strategic purpose with no
control joint control or significance influence and with no active market quotation.For 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 profit or loss. These financial assets are initially measured at fair value and
the relevant transaction costs are directly included in the current profit or loss. Gains or losses arising from these
financial assets is recorded into the current profit or loss.The contingent consideration recognized by the Group in the business combination not under the same control
which constitutes a financial asset is classified as the financial assets measured at fair value through current profit
or loss.
(3) Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value through
profit or loss and other financial liabilities.Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and financial
liabilities designated at the initial recognition to be measured by the fair value and their changes are recorded in
the current profit or loss. The subsequent measurement shall be at fair value and gains or losses arising from
changes in fair value and the dividends and interest expense related to the financial liability shall be the current
profit or loss.Other financial liabilities shall be subsequently measured at amortized cost with actual interest rate. The Group
682025 Interim Report of Konka Group Co. Ltd.
classifies financial liabilities except for the following items as financial liabilities at amortized cost: * Financial
liabilities at fair value through profit or loss including held-for-trading financial liabilities (including the
derivative instruments belonging to financial liabilities) and designated financial liabilities at fair value through
profit or loss. * Financial liabilities arising from the transfer of financial assets not meeting the derecognition
conditions or continuous involvement in the transferred financial assets. * Financial guarantee contract not
belonging to cases of above * or * and loan commitments at 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 purchase party in
the business combination not under the same control at fair value and changes thereof shall be recorded into the
current profit or loss.
(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 receivable contract cash flows and all expected cash
flows that are discounted to the present value based on the original actual interest rate -- the present value of all
cash shortfall.Expected credit loss throughout the 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 during the entire lifespan.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 during 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 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 during 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 XIII.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.
692025 Interim Report of Konka Group Co. Ltd.
2) Portfolio category and determination basis of provision for impairment made by 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
instruments credit risk rating and aging of receivables etc.
3) Judgment criteria for individual provision for impairment of bad debts based on individual basis
If the credit risk characteristics of a customer differs significantly from those of other customers in the portfolio
or there has been significant change in the credit risk characteristics of the customer for example receivables
from related parties; receivables that are in dispute with the other party or involved in litigation or arbitration;
receivables and others that have obvious indications that the debtor is likely to be unable to fulfill the repayment
obligation.
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 profit or loss 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 profits and losses.If the partial transfer of financial assets satisfies the conditions for termination confirmation the entire book value
of the transferred financial assets will be apportioned between the termination confirmation portion and the non-
termination confirmation portion according to their relative fair values and the consideration received for the
transfer And the amount corresponding to the termination of the recognition of the cumulative amount of changes
in fair value originally included in other comprehensive income that should be apportioned to the derecognition
part And the payment of 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 profit and loss.
(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 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 whether it is entirely or partially based on changes in variables other than the market price of
the Group's own equity 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
702025 Interim Report of Konka Group Co. Ltd.
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
classified as a financial liability.If financial instruments or their components are financial liabilities the Group will include interest dividends (or
dividends) gains or losses and gains or losses arising from redemption or refinancing etc. in the current profits
and 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 specific expected credit loss
during 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
Bank acceptance bills The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of accepters (the same as accounts receivable)
13. Accounts receivable
For account receivable and contract assets excluding significant financing composition the Group shall measure
the provision for loss according to the specific expected credit loss amount within the entire period of existence.For account receivable contract assets and lease payment receivable including significant financing composition
the Group shall always measure the provision for loss according to the specific expected credit loss amount within
the period of existence.Except the account 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
Aging Combination This portfolio is accounts receivable with aging as the credit risk feature.Related party
combination The accounts receivable from the other entities within the consolidation scope
14. Receivables financing
The Group’s accounts receivable financing is based on expected credit losses and provision is made for
depreciation 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
712025 Interim Report of Konka Group Co. Ltd.
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
Aging Combination This portfolio is other receivables with aging as the credit risk feature.Low Risk This combination shall regard other receivables of extremely low risk (including the
Combination revolving fund the cash deposit and the guarantee deposit) as the credit risk feature.Related party
combination Other receivables from the other entities within the consolidation scope
16. Contract assets
(1) Confirmation methods and standards of 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 has 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.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 “provisionfor impairment of contract assets”. If the expected credit loss is greater than the book value of the current contract
asset impairment provision the Group will recognize the difference as an impairment loss and debit the "asset
impairment loss". Credited "Contract asset impairment provision". On the contrary the Group recognizes the
difference as an impairment gain and keeps the opposite accounting records.If the Group actually incurs 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 into "losses from asset impairment".
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 and dispatch is determined by 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 account after deducting the estimated cost
of completion estimated sale expense 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
purpose of inventories and the effect of events after the balance sheet date.
722025 Interim Report of Konka Group Co. Ltd.
After withdrawing the depreciation reserves for inventories if the factors which cause any write-down of the
inventories have disappeared causing the net realizable value of inventories is higher than its book value; the
amount of write-down shall be reversed from the original amount of depreciation reserve for inventories. The
reversed amount shall be included in the profits and losses of the current period.
18. Long-term receivables
By determining whether the credit risk of long-term account 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 long-term account 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
Financing Lease Regarding the long-term receivables related to the financing lease as the credit risk
Combination characteristics
19. Long-term equity investments
The Group's long-term equity investments mainly consist of 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.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 statement. 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.If the equity of the investee under the same control is acquired in stages through multiple transactions to
eventually result in a business combination additional disclosures of the treatment of long-term equity
investments in the parent Group's financial statements shall be made in the Reporting Period in which control is
obtained. For example 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 equity of the investee not under the same control is acquired in stages through multiple transactions to
eventually result in a business combination additional disclosures of the cost treatment of long-term equity
investments in the parent Group's financial statements shall be made in the Reporting Period in which control is
obtained. For example 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 shall 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
732025 Interim Report of Konka Group Co. Ltd.
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 by the equity method the relevant other comprehensive income accounted
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; for financial
assets measured at fair value through current profit or loss the gains or losses of the equity originally included in
the profit or loss 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 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 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 associate enterprises 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 cost method when the additional
investment is made the book value of the long-term equity investment cost is increased according to the fair value
of the cost amount paid by the additional investment and the relevant transaction expenses. In recognizing the
share of net profit or loss 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 and 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 long-term equity investment with equity method for subsequent measurement the book value of the long-
term equity investment will increase or decrease with the change of the owner's equity of the invested entity.When confirming the share of the net profit and loss of the investee the net profit and loss of the investee shall be
calculated based on the fair value of the identifiable assets of the investee at the time of obtaining the investment
in accordance with the accounting policies and accounting period of the Group and offset the internal transaction
profit and loss between the joint venture and the joint venture according to the shareholding ratio Profit is
recognized after adjustment.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 common control or
significant influence and its book value is recognized in current profit or loss. For long-term equity investment
accounted by equity method other comprehensive income accounted by the original equity method shall be
accounted on the same basis as the investee's direct disposal of relevant assets or liabilities when the equity
method is terminated and the owner's equity shall be recognized due to other changes in owner's equity of the
investee except net profit and loss other comprehensive income and profit distribution When the equity method is
terminated all of them shall be 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 equity method. The difference between the book value of the disposal 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
742025 Interim Report of Konka Group Co. Ltd.
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 profit or loss.If the transaction from step-by-step disposal of equity to loss of control right does not belong to package
transaction 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 account of loss of control Period profit and loss.
20. Investment property
The term “investment property” refers to the real estate held for generating rent and/or capital appreciation.Investment property of the Group include the right to use any land which has already been rented; the right to use
any land which is held and prepared for transfer after appreciation; and the right to use any building which has
already been rented. 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 real estate.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 profit or loss when incurred.The Group shall make a follow-up measurement to the investment property by employing the cost pattern on the
date of the balance sheet. An accrual depreciation or amortization shall be made for the investment property in the
light of the accounting policies of the use right of buildings or lands.For details of impairment test method and withdrawal method of impairment provision of investment property
please refer to Note VI. 27. “Long-term assets impairment”.The Group's investment real estate adopts 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 real
estate shall refer to the depreciation policy of buildings in fixed assets and the amortization policy of land use
right in intangible assets.When owner-occupied real estate or inventories are changed into investment property or investment property is
changed into owner-occupied real estate of which 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 profit or loss in the period in which it is incurred.
21. 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 reliably. The Group’s fixed assets include buildings
and constructions machinery and equipment electronic equipment transportation equipment and other
equipment.
752025 Interim Report of Konka Group Co. Ltd.
The Group depreciates all fixed assets by 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:
Annual
Type Depreciation Depreciation period(year) Expected net deprecationNo. period (year) salvage value (%) (%)
Housing and Straight-line
1 building depreciation 20-40 5-10.00 2.25-4.75
Machinery Straight-line
2 equipment depreciation 5-10 5-10.00 9.00-19.00
Electronic Straight-line
3 equipment depreciation 3-5 5-10.00 18.00-31.67
Transportation Straight-line
4 vehicle depreciation 3-5 5-10.00 18.00-31.67
Other equipment Straight-line5 depreciation 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 estimation methods are used when changes are required.
22. 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 useable 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
Housing and requirements. Upon joint acceptance by the Company’s Engineering Department and units responsible for surveying
building design construction supervision etc. and government departments such as the Fire Services Department and theHousing Authority and reaching the predetermined usable state following process approval it is transferred to fixed
assets.Machinery The equipment management department and the equipment manufacturer are jointly responsible for the installation and
equipment commissioning of the equipment including hardware debugging process conditions debugging etc. Upon completionof debugging and reaching the predetermined usable state following process approval it is transferred to fixed assets.
23. 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. Other borrowing costs are recognized as expenses in the
current period. 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 or 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 is included in the current profit or loss. 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
762025 Interim Report of Konka Group Co. Ltd.
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 special 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.
24. 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.
(1) Initial measurement
After 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 incentives the lease
incentives 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) Follow-up measurement
After the commencement date of the lease term the Group adopts the cost model to carry out follow-up
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 has accrued 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 profits and 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 on 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 can not 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.
25. Intangible assets
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 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
772025 Interim Report of Konka Group Co. Ltd.
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 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 treatment
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 are
recognized in profit or loss when incurred. Expenditure on the development phase are capitalized when all of the
following conditions are met:
A) The Group has assessed the technical feasibility of completing the intangible asset so that it will be available
for use or sale.B) The Group intends to complete the intangible asset and use or sell it.C) It is probable that the intangible asset will generate future economic benefits.D) The Group has the adequate technical financial and other resources to complete the development and to use or
sell the intangible asset.E) 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 profit or loss for the
current period when incurred.
26. Impairment of long-term assets
For non-current non-financial Assets of fixed assets projects under construction intangible assets with limited
service life investing real estate with cost model long-term equity investment of subsidiaries cooperative
enterprises and joint ventures the Group should judge whether decrease in value exists on the date of balance
sheet. Recoverable amounts should be tested for decrease in value if it exists. Goodwill intangible assets with
uncertain service life and other non-accessible intangible assets should be tested for impairment at the end of each
year regardless of whether there is any indication of impairment.Impairment of non-current assets other than financial assets (except goodwill)
If the recoverable amount is less than book value in impairment test results the provision for impairment of
differences should include in impairment loss. Recoverable amounts would be the higher of net value of asset fair
value deducting disposal charges or present value of predicted cash flow. The fair value of the assets is
determined according to the sales agreement price in fair transactions; 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
sales agreement nor an active market for the asset the fair value is estimated based on the accessible optimum
information. Disposal expenses include legal fees taxes cartage or other direct expenses of merchantable Assets
related to asset disposal. Present value of predicted asset cash flow should be determined by the proper discount
rate according to Assets in service and predicted cash flow of final disposal. Asset depreciation reserves should be
calculated on the basis of single Assets. If it is difficult to predict the recoverable amounts for single Assets
recoverable amounts should be determined according to the belonging asset group. Asset group is the minimum
asset combination producing cash flow independently.
27. Impairment of goodwill
In impairment test book value of the business reputation in financial report should be shared to beneficial asset
group and asset group combination in collaboration of business combinations. It is shown in the test that if
recoverable amounts of shared business reputation asset group or asset group combination are lower than book
value it should determine the impairment loss. Impairment loss amount should firstly be deducted and shared to
782025 Interim Report of Konka Group Co. Ltd.
the book value of business reputation of asset group or asset group combination then deduct book value of all
assets according to proportions of other book value of above assets in asset group or asset group combination
except business reputation.The methodology parameters and assumptions for the goodwill impairment test are detailed in Note VIII.19.After the asset impairment loss is determined recoverable value amounts would not be returned in future.
28. Long-term prepaid expense
The Long-term deferred expenses of the Group including renovation cost mold cost and so on shall be amortized
evenly during the benefit period. If these long-term deferred expenses cannot benefit the future accounting period
the amortized value of this item that has not been amortized shall be transferred to the current profit or loss.
29. Contract liabilities
Liabilities of contracts refer to the Group's obligation to transfer goods to customers due to the consideration
received or receivable from customers. Before the transfers if the customer has paid the consideration or if the
Group has obtained the right to unconditionally collect the contract consideration the liabilities of contracts shall
be recognized based on the amount received or receivable at the earlier point between the actual payment by the
customer and the payment due.
30. Employee compensation
Salaries of staff of the Group include short-term salary post-employment benefits termination compensation and
other long-term benefits.Short-term salary mainly includes wages bonuses allowances and subsidies as well as employee benefits
medical insurance maternity insurance employment injury insurance housing provident fund labour union
expenses and staff education expenses and non-monetary benefits. During the accounting period when the
employees provide services the actual short-term compensation is recognized as a liability that shall be included
in the current profit and loss or the cost of related assets according to 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 liabilities and
shall be included in the current profit and loss 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 terminate the labour relations unilaterally or reduce the dismissal welfare remuneration and liabilities
produced from the dismissal welfare should be determined and included in current profits and losses when
determining the costs of dismissal welfare and recombination. However dismissal welfare not fully paid within
12 months after annual reporting period should be handled the same as other long-term employees’ payrolls.
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion 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 profits and 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 met with the setting drawing plan should be
accounting disposed according to the setting drawing plan while the rest should be disposed according to the
setting revenue 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
792025 Interim Report of Konka Group Co. Ltd.
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 call option when the Group reasonably
determines that the call 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
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
interest rate on borrowing will be used as the rate of discount. The incremental interest rate on borrowing 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 "borrowings" 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) Follow-up 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 profit or loss for the current
period. 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 book value of the right-of-use assets has been reduced to zero but the lease obligations
still need to be further reduced the Group will include the remaining amount in profit or loss for the current
period. * 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 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 call 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. Estimated liabilities
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 projected liabilities 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 the
provisions for contingent liabilities at the balance sheet date and adjusts the carrying amount of the provision as
necessary.
802025 Interim Report of Konka Group Co. Ltd.
When all or some of the expenses necessary for the liquidation of a provisions of an enterprise is 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. Revenue
(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. 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 it shall be deemed as a performance obligation
fulfilled at a certain time point:
* The customer obtains and consumes the economic benefits brought by the performance of the Group while the
Group is performing the obligation;
* 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 is entitled to
collect payments for the cumulative performance of the contract during the entire 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. The Group will consider the following
signs when judging whether the customer has acquired the right of control over relevant goods:
* The customer has the current payment obligation for such goods i.e. the Group enjoys the current right to
collect the payment for such 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;
* Other signs indicating that the customer has gained control of the goods.The right of the Group to receive consideration for the transfer of goods or services to the customer is presented as
a contract asset and impairment of contract assets is accrued on the basis of expected credit losses. The
unconditional right to the charge of consideration from the customer possessed by the Group is presented as
receivables. The Group's obligation to transfer goods or services to customers for consideration received or
receivable from customers is presented as a contract liability.
(2) Measurement principle for revenue
1) If the contract contains two or more performance obligations at the commencement 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 refers to the amount of consideration the Company is expected to have the right to take on
account of the transfer of goods or services to the customer excluding the payments charged on behalf of any
812025 Interim Report of Konka Group Co. Ltd.
third party and the payments expected to be refunded to the customer. The transaction price recognized by the
Group shall not exceed the amount that is highly unlikely to result in a significant reversal of the cumulative
recognized income at the time of the elimination of relevant uncertainties. Amounts that the Company expects to
refund to customers are accounted for as liabilities and are not included in the transaction price.
3) If there is a variable consideration in the contract (for example some of the contracts between the Group and its
customers involve cash discounts and price protection etc.) the Group determines the best estimate of the
variable consideration according to the expected value or the most likely amount but the transaction price
including the variable consideration shall not exceed the accumulated and recognized income without possible
significant reversal when the relevant uncertainty is eliminated.
4) For consideration payable to customers the Group will offset the consideration payable to customers against
the transaction price and offset the current revenue at the time point when recognizing the relevant revenue or
paying (promising to pay) the customer consideration whichever is later unless the consideration payable is for
the purpose of obtaining other goods which can be clearly distinguished 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 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 the significant financing component is covered in the contract the transaction price will be determined by the
Group based on the amount payable in cash the customer may pay at once when the customer acquires the right of
control over goods or services as assumed. This financing component is discounted into the cash selling price of
the goods with the discount rate that discounts the nominal amount of the contract consideration. Then the
difference between the determined transaction price and the amount of the consideration promised in the contract
over the contract period is amortized by using the effective interest method. 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 the service quality assurance that provides a separate service in order to assure
customers that the goods sold meet the established standards the Group regards it as a single performance
obligation based on the stand-alone selling price of the quality assurance of goods and services. 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 construction contract between the Group and a customer is modified:* If the modification adds both a
distinct construction service and additional contract consideration and the additional consideration reflects the
standalone selling price of the additional service the Group accounts for the modification as a separate contract;
* If the contract modification does not fall under the scenario described in * above and the construction
services transferred before the modification date are distinct from those yet to be transferred the Group accounts
for the modification as the termination of the original contract and the creation of a new contract combining the
remaining unsatisfied obligations under the original contract and the modified contract terms; * If the contract
modification does not fall under scenario * above and the construction services transferred as of the contract
modification date are not distinct from those yet to be transferred the Group accounts for the modification as part
of the original contract. The resulting effect on previously recognized revenue is adjusted in current revenue at the
date of the contract modification.
822025 Interim Report of Konka Group Co. Ltd.
(3) Specific method
The revenue of the Group mainly consists of the income from main business and the income from other
businesses.* Revenue recognized on 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.* Income confirmed according to the performance progress
The Group's business contracts with customers for project construction and operating leases etc. are performance
obligations performed within a certain period of time and revenue is recognized according to the progress of the
performance.
34. Contract costs
(1) The method of determining the amount of assets related 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 enriches 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 are
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 profit or loss 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 incremental cost
that can be recovered (such as travel expenses incurred regardless of whether the contract is obtained etc.) are
included in the current profit and loss when they are incurred but it is clearly borne by the customer except.
(2) Amortization of assets related 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 profit and loss.
(3) Impairment of assets related 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 depreciation 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 profit and loss 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.
832025 Interim Report of Konka Group Co. Ltd.
35. Government grants
The government grants of the Group are divided into asset-based government grants and income-based
government grants. Specifically asset-based government grants refer to the government grants obtained by the
Group for the purpose of purchasing constructing or otherwise forming long-term assets; income-based
government grants refer to those other than asset-based 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-based government grants as a whole.If the government grants are monetary assets they shall be measured at the amount actually received. For a grant
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 grant 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 (RMB1).Asset-based 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 profits and 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 profit and loss of asset disposal.Income-based 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 profits and 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 profit or loss in the current period;
3) Under any other circumstances the grants will be included in profit or loss in the current period.
36. Deferred tax assets/deferred tax liabilities
The Group's deferred tax assets and deferred tax liabilities are calculated and recognized based on the difference
(temporary difference) between the tax base and book 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 isn’t 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. Lease
842025 Interim Report of Konka Group Co. Ltd.
(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 a 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 lessee
1) Lease recognition
On the lease commencement date the Group recognizes the right-of-use assets and lease obligations in respect of
the lease. For the recognition and measurement of right-of-use assets and lease liabilities please refer to Note IV
"25. Right-of-use assets" and "32. Lease liabilities".
2) Lease change
A lease change refers to a change in the scope consideration and term of lease outside the original contract
clauses including the addition or termination of the one or several rights to use lease assets and the extension or
reduction of the lease term specified in the contract. The effective date of lease change refers to the date when
both parties reach an agreement on lease change.If there is any change in the lease and the following conditions are met at the same time the Group shall account
for the lease change as a separate lease: * the lease change 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 change is not accounted for as a separate lease on the effective date of the lease change the Group
amortizes the consideration of the contract after the change in accordance with the relevant provisions of the lease
standards and re-determine the lease term after the change; the revised discount rate is used to discount the
changed lease payment to remeasure the lease liabilities. When calculating the present value of the lease payment
after the change the Group uses the interest rate implicit in the lease for the remaining lease period as the discount
rate; where 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 change as the discount rate. If the
interest rate implicit in lease cannot be determined the Group adopts the incremental borrowing rate of the lessee
on the effective date of the lease change as the rate of discount. With regard to the impact of the above-mentioned
lease liability adjustment the Group conducts accounting treatment according to the following situations: * The
lessee will correspondingly reduce the book value of the right-of-use assets and include the profit or loss of the
lease terminated in part or whole in the current profit or loss if the lease change narrows the scope of lease or
shortens the lease term. * The lessee will correspondingly adjust the book value of the right-of-use assets if
other lease changes result in the re-measurement of the lease obligation.
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 payments of short-term and low-value asset leases incurred during each period
of the lease term in the profit or loss for the current period or the cost of relevant assets by the straight-line method.
(3) The Group as 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
852025 Interim Report of Konka Group Co. Ltd.
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 of 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. It recognizes the net investment in the lease as the
entry value of the finance lease when initially measuring the finance lease receivable.The net investment in the lease is the sum of the net value of the unguaranteed residual value and the lease
receivable not received on the commencement date of the lease term at the interest rate implicit in lease. Lease
receipts refer to the amount that the lessee 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 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 of 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.Follow-up measurement
The Group calculates and confirms the interest income at a fixed periodic rate in each period in the lease term.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
The Group recognizes lease receipts from operating leases as rental income on a straight-line basis during each
862025 Interim Report of Konka Group Co. Ltd.
period of the lease term.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 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 profits and losses of the current period 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
Variable lease payments made by the Group in relation to operating leases that are not included in the lease
receivable are included in the current profit or loss when they are 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 payment receivable 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.
39. Changes in main accounting policies and estimates
(1) Changes in accounting policies
There were no changes in accounting policies for the Group during the current period
(2) Changes in accounting estimates
There were no changes in accounting estimates for the Group during the current period
VII. Taxation
1. Main taxes and tax rates
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at the tax
rate and paid the VAT by the
VAT amount after deducting the 1%、3%、5%、6%、9%、13%
deductible withholding VAT at
current period of which the VAT
872025 Interim Report of Konka Group Co. Ltd.
applicable to easy collection won’t
belong to the deductible
withholding VAT.Urban maintenance and
construction tax The circulating tax actually paid
5% 7% / See 2. Tax Preference for
details
Education surcharge The circulating tax actually paid 3% / See 2. Tax Preference fordetails
Local education surcharge The circulating tax actually paid 2% / See 2. Tax Preference fordetails
Enterprise income tax Taxable income 25%/ See 2. Tax Preference fordetails
Explanation of main taxpayers of different corporate income tax rates
Name of entity Income tax rate
Shanxi Konka Xingda Hongye Jiangsu Konka Smart
Chengdu Konka Electronics 15%
Hong Kong Konka Hongdin Trading Jiali
International Hongjet Jiaxin Technology Hongdin
Invest Konka Mobility Kowin Memory (Hong Kong) 16.5%
Chain Kingdom Memory Technologies
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 personsshould be tax payment enterprises with the administrative measures of income tax of “unified computing level-to-level administration 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.
2. Tax preference
(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 December 31 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 Chengdu Anren Konka Enterprise Service
Yibin Konka Incubator Anhui Konka Low Carbon Yibin Konka Intelligent Anlu Konka Konka Flexible
Electronics Shengxing Industrial Zhitong Technology Nantong Hongdin Digital Technology Shanghai Konka
Guizhou Konka New Material Technology Shenzhen Nianhua Guizhou Konka New Energy Shanxi Smart
Home Appliance Ji'an Konka Kangrong Jiayuan Jiangkang (Shanghai) Technology Konka Intelligent
Manufacturing Xi'an Konka Intelligent Chongqing Kangyiyun Zhejiang Konka Electronic Zhejiang Konka
Technology Industry Konka Unifortune and Konka North China were subject to the aforementioned preferential
tax policies during the reporting period.
(2) On November 19 2024 Xingda Hongye a subsidiary of the Company obtained the Certificate of High-Tech
Enterprise jointly issued by Department of Science and Technology of Guangdong Province Department of
Finance of Guangdong Province and Guangdong Provincial Tax Service of 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%.
882025 Interim Report of Konka Group Co. Ltd.
(3) On November 29 2023 Shaanxi Konka a subsidiary of the Company obtained the Certificate of High-Tech
Enterprise jointly issued by Department of Science and Technology of Shanxi Province Department of Finance of
Shanxi Province and Shanxi Provincial Tax Service of State Taxation Administration with the certificate number
GR202361002167 which will be valid for three years. According to relevant tax regulations Shaanxi Konka
enjoys relevant preferential tax policies for high-tech enterprises for three consecutive years from 2023 to 2025
and pays enterprise income tax at a preferential tax rate of 15%.
(4) On November 6 2023 Jiangsu Konka Smart a subsidiary of the Company obtained the Certificate of High-
Tech Enterprise jointly issued by Department of Science and Technology of Jiangsu Province Department of
Finance of Jiangsu Province and Jiangsu Provincial Tax Service of State Taxation Administration with the
certificate number GR202332008044 which will be valid for three years. According to relevant tax regulations
Jiangsu Konka Smart enjoys relevant preferential tax policies for high-tech enterprises for three consecutive years
from 2023 to 2025 and pays enterprise income tax at a preferential tax rate of 15%.
(5) 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 Electronic a subsidiary of the Company is eligible for this
preferential tax policy.
(6) 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.VIII. Notes to the items of consolidated financial statements
1. Cash and cash equivalents
Item Ending balance Beginning balance
Cash on hand 35.44 208.19
Bank deposits 2578397494.88 2942927002.53
Other monetary assets 1247387392.49 1172840037.01
Total 3825784922.81 4115767247.73
Of which: Total amount deposited overseas 32389141.10 16326669.23
2. Financial assets held for trading
Item Ending balance Beginning balance
Financial assets measured at fair value through current profit or
loss 1270907253.85 286648129.34
Including: Investment in equity instruments 1270907253.85 286648129.34
Total 1270907253.85 286648129.34
3. Notes receivable
(1) Presentation of notes receivable by classification
Item Ending balance Beginning balance
Bank acceptance bills 50167914.08 148019004.66
Trade Acceptance 20497890.58 21656171.50
Total 70665804.66 169675176.16
(2) Classified presentation by the method of provision for bad debts
Type Ending balance
892025 Interim Report of Konka Group Co. Ltd.
Book balance Provision for bad debts
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside for bad
debts by the single item
Provision set aside for bad
debts by portfolio 71092669.65 100.00 426864.99 0.60 70665804.66
Including: Bank acceptance
bills 50167914.08 70.57 - - 50167914.08
Trade Acceptance 20924755.57 29.43 426864.99 2.04 20497890.58
Total 71092669.65 100.00 426864.99 0.60 70665804.66
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside for bad
debts by the single item
Provision set aside for bad 170126162.18 100.00 450986.02 0.27 169675176.16
debts by portfolio
Including: Bank acceptance 148019004.66 87.01 148019004.66
bills
Trade Acceptance 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 draft based on aging in the portfolio
Ending balance
Name
Book balance Provision for bad debts Provision percentage(%)
Within 1 year 20924755.57 426864.99 2.04
Total 20924755.57 426864.99 2.04
(3) Provision reversal or recovery of provision for bad debts in the current period
Change in the current period
Type Beginning Recovered or Charge-balance Ending balanceProvision reversed off or Otherswrite-off
Trade Acceptance 450986.02 369146.90 393267.93 426864.99
Total 450986.02 369146.90 393267.93 426864.99
(4) Pledged notes receivable of the Company as at the end of the period
The Company had no pledged notes receivable as at the end of the current period.
(5) Notes receivable endorsed or discounted by the Company as at the end of the period but not expired on
the balance sheet date
Item Amount derecognized at the end of the Amount not derecognized at the end ofperiod the period
Bank acceptance bills 1083544741.52
Trade Acceptance 15897557.29
902025 Interim Report of Konka Group Co. Ltd.
Item Amount derecognized at the end of the Amount not derecognized at the end ofperiod the period
Total 1083544741.52 15897557.29
(6) Notes receivable actually written off in the current period
No notes receivable actually written off in the current period
4. Accounts receivable
(1) Accounts receivable listed by aging
Aging Ending book balance Beginning book balance
Within one year (inclusive) 992210414.84 985155712.60
1-2 years 222818754.26 467086582.23
2-3 years 253005251.21 112149892.90
3-4 years 152073259.46 117756261.01
4-5 years 106068375.18 255011480.57
Over 5 years 1389056441.66 1217501924.55
Total 3115232496.61 3154661853.86
(2) Classified presentation by the method of provision for bad debts
Ending balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside for
bad debts by the single 1381094478.87 44.33 1340039805.00 97.03 41054673.87
item
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 1734138017.74 55.67 390815381.18 22.54 1343322636.56
Subtotal of portfolio 1734138017.74 55.67 390815381.18 22.54 1343322636.56
Total 3115232496.61 100.00 1730855186.18 55.56 1384377310.43
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Amount Percentage
Provision Book value
(%) Amount percentage(%)
Provision set aside for 1452875517.73 46.05 1371250436.68 94.38 81625081.05
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging 1701786336.13 53.95 324488350.48 19.07 1377297985.65
portfolio
Subtotal of portfolio 1701786336.13 53.95 324488350.48 19.07 1377297985.65
Total 3154661853.86 100.00 1695738787.16 53.75 1458923066.70
1) Provision set aside for bad debts of accounts receivable by single item
912025 Interim Report of Konka Group Co. Ltd.
Beginning balance Ending balance
Name
Book balance Provision for Provision for bad
Provision Reasons
bad debts Book balance debts percentage for the(%) provision
CEFC Shanghai Not
International 298855950.30 298855950.30 298855950.30 298855950.30 100.00 expected to
Group Limited berecoverable
Hongtu Not
Sanpower 200000000.00 200000000.00 200000000.00 200000000.00 100.00 expected toTechnology be
Co. Ltd. recoverable
Shenzhen Not
Yaode
Technology 147734652.40 147734652.40 147122079.87 147122079.87 100.00
expected to
be
Co. Ltd. recoverable
Guangan
Ouqishi Expected
Electronic 113139940.86 110965942.46 113139940.86 110965942.46 98.08 to be
Technology difficult to
Co. Ltd. recover
Zhongfu Not
Tiangong expected to
Construction 71289096.65 71289096.65 71289096.65 71289096.65 100.00 be
Group Co. Ltd. recoverable
CCCC First Not
Harbor
Engineering 65221300.00 65221300.00 65221300.00 65221300.00 100.00
expected to
be
Company Ltd. recoverable
Gome
Customization Not
(Tianjin) Home 57021975.73 57021975.73 57021975.73 57021975.73 100.00 expected to
Appliances Co. be
Ltd. recoverable
Not
Xingda Hongye
(HK) Limited 51902301.95 51902301.95 51902301.95 51902301.95 100.00
expected to
be
recoverable
Dongguan High
Energy Expected
Polymer 50699037.70 32893535.66 50699037.70 32893535.66 64.88 to be
Materials Co. difficult to
Ltd. recover
China Energy Not
(Shanghai)
Industrial Co. 49993564.16 49993564.16 49993564.16 49993564.16 100.00
expected to
be
Ltd. recoverable
Expected
Others 347017697.98 285372117.37 275849231.65 254774058.22 92.36 to bedifficult to
recover
Total 1452875517.73 1371250436.68 1381094478.87 1340039805.00 — —
2) Provision set aside for bad debts of accounts receivable by portfolio
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
Within 1 year 978840271.43 19968341.58 2.04
1-2 years 196954968.24 19734887.88 10.02
922025 Interim Report of Konka Group Co. Ltd.
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
2-3 years 230954982.28 52403685.49 22.69
3-4 years 81660961.17 52981631.61 64.88
4-5 years 87829668.42 87829668.42 100.00
Over 5 years 157897166.20 157897166.20 100.00
Total 1734138017.74 390815381.18 22.54
(3) Provision reversal or recovery of provision for bad debts in the current period
Amount of changes for the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of accounts 1695738787.16
receivable 50194697.68 9349959.24
Total 1695738787.16 50194697.68 9349959.24
(Continued)
Amount of changes for the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of accounts
receivable -5728339.42 1730855186.18
Total -5728339.42 1730855186.18
Remarks: Others in the amount of changes in the current period were a decrease of RMB 4381709.42 due to
changes in exchange rate and a decrease of RMB 1346630.00 due to loss of control.
(4) Accounts receivable actually written off in the current period
There were no accounts receivable actually written off in the current period.
(5) Top five accounts receivable and contract assets in ending balances collected by debtors
The total amount of accounts receivable with top five Ending balance categorized by debtors in the current period
was RMB 1268108184.69 accounting for 40.71% of the total Ending balance of accounts receivable. The total
Ending balance of provision for bad debts correspondingly set aside was RMB 711714785.43.
5. Contract assets
(1) Contract assets
Ending balance Beginning balance
Item
Book balance Provision forbad debts Book value Book balance
Provision for
bad debts Book value
Warranty 2463577.34 172653.44 2290923.90 2867437.14 236928.54 2630508.60
Total 2463577.34 172653.44 2290923.90 2867437.14 236928.54 2630508.60
(2) Classified presentation by the method of provision for bad debts
Ending balance
Book balance Provision for bad debts
Type
Provision Book value
Amount Percentage(%) Amount percentage(%)
Provision set aside for bad debts by
the single item
Provision set aside for bad debts by
portfolio
932025 Interim Report of Konka Group Co. Ltd.
Ending balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Of which: Aging portfolio 2463577.34 100.00 172653.44 7.01 2290923.90
Subtotal of portfolio 2463577.34 100.00 172653.44 7.01 2290923.90
Total 2463577.34 100.00 172653.44 7.01 2290923.90
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside for bad debts by the
single item
Provision set aside 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
Provision set aside for bad debts of contract assets by portfolio
Ending balance
Name
Book balance Provision for bad Provision percentagedebts (%)
Within 1 year 929787.16 18967.66 2.04
1-2 years 1533790.18 153685.78 10.02
Total 2463577.34 172653.44 7.01
(Continued)
Beginning balance
Name
Book balance Provision for bad Provision percentagedebts (%)
Within 1 year 631436.80 12881.31 2.04
1-2 years 2236000.34 224047.23 10.02
Total 2867437.14 236928.54 8.26
(3) Provision reversal or recovery of provision for bad debts in the current period
Amount of changes for the current period
Recovered Write-
Beginning or Ending
Item
balance Provision in the transferred
off/Charge- Others Reason
off in the balancecurrent period back in the
current current
change
period period
Warranty 236928.54 49025.52 113300.62 172653.44 Normalprovision
Total 236928.54 49025.52 113300.62 172653.44 —
942025 Interim Report of Konka Group Co. Ltd.
(4) Contract assets actually written off in the current period
There were no contract assets actually written off in the current period.
6. Receivables financing
Item Ending balance Beginning balance
Notes receivable 115550888.61 63943324.53
Total 115550888.61 63943324.53
7. Other receivables
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 958976091.29 989245120.86
Total 958976091.29 989245120.86
(1) Classified by account nature
Nature of fund Ending book balance Beginning book balance
Deposit and margin 320822663.02 344822666.77
Intercourse funds among minority
shareholders in the business consolidation
not under the same control and related 184297521.47 182764171.72
parties
Energy-saving subsidies receivable 152399342.00 152399342.00
Intercourse funds with related parties 2254165476.10 2253362393.92
Others 1096507161.81 1035865828.21
Total 4008192164.40 3969214402.62
(2) Other receivables listed by aging
Aging Ending book balance Beginning book balance
Within one year (inclusive) 433908798.03 394812584.95
1-2 years 194267930.05 206901565.92
2-3 years 88743308.34 110433169.22
3-4 years 395291931.74 683019991.91
4-5 years 967717302.41 771766144.27
Over 5 years 1928262893.83 1802280946.35
Total 4008192164.40 3969214402.62
(3) Classified presentation of other receivables by the method of provision for bad debts
Ending balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside for
bad debts by the single
item 3522933722.32 87.89 2831555040.66 80.37 691378681.66
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 251077508.49 6.26 171977326.54 68.50 79100181.95
952025 Interim Report of Konka Group Co. Ltd.
Ending balance
Book balance Provision for bad debts
Type
Amount Percentage
Provision Book value
(%) Amount percentage(%)
Low Risk Combination 234180933.59 5.85 45683705.91 19.51 188497227.68
Subtotal of portfolio 485258442.08 12.11 217661032.45 44.85 267597409.63
Total 4008192164.40 100.00 3049216073.11 76.07 958976091.29
(Continued)
Beginning balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside
for bad debts by the 3524335366.36 88.79 2773496740.31 78.70 750838626.05
single item
Provision set aside
for bad debts by
portfolio
Of which: Aging
portfolio 204938477.00 5.16 168912851.74 82.42 36025625.26
Low Risk
Combination 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
Book balance Provision for bad debts Provision percentage(%)
Within 1 year 193214047.81 2585150.81 1.34
1-2 years 10769456.92 781213.04 7.25
2-3 years 45762682.82 6403743.56 13.99
3-4 years 37394775.07 11800570.06 31.56
4-5 years 6740050.90 4712926.42 69.92
Over 5 years 191377428.56 191377428.56 100.00
Total 485258442.08 217661032.45 44.85
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 loss Expected credit loss
Provision for bad debts Expected credit during the whole during the whole Total
loss for the next outstanding maturity outstanding maturity
12 months (without credit (with credit
impairment) impairment)
Balance as of January 1
20251712968.68204759572.772773496740.312979969281.76
Balance as of January 1
2025 in the current period -175565.58 175565.58 - -
-- Transferred to Phase II -175565.58 175565.58 -
962025 Interim Report of Konka Group Co. Ltd.
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Provision for bad debts Expected credit during the whole during the whole Total
loss for the next outstanding maturity outstanding maturity
12 months (without credit (with credit
impairment) impairment)
-- Transferred to Phase III - - -
-- Reclassified under Phase II -
-- Reclassified under Phase I -
Provision in the current
period 1226535.02 10760714.71 64904522.03 76891771.76
Recovery in the current
period - 619971.40 - 619971.40
Charge-off in the current
period -
Write-off in the current
period - -
Other changes -178787.32 -6846221.69 -7025009.01
Balance as of June 30 2025 2585150.80 215075881.64 2831555040.66 3049216073.11
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 the credit impairment after initial confirmation. For other receivables of credit impairment that
have occurred the loss provision is measured according to the credit losses that have occurred throughout the
duration.
(4) Provision reversal or recovery of provision for bad debts in the current period
Amount of changes for the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of other
receivables 2979969281.76 76891771.76 619971.40
Total 2979969281.76 76891771.76 619971.40
(Continued)
Amount of changes for the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of other
receivables 7025009.01 3049216073.11
Total 7025009.01 3049216073.11
Remarks: Others in the amount of changes in the current period were an increase of RMB 7025009.01 due to
changes in exchange rate.
(5) Other receivables actually write off in the current period
There were no other receivables actually written off in the current period.
(6) Top five other receivables in ending balances collected by debtors
The total amount of other receivables with top five ending balance categorized by debtors in the current period
was RMB 3068111239.44 accounting for 76.55% of the total Ending balance of other receivables. The total
ending balance of provision for bad debts correspondingly set aside was RMB 2458036956.45.
972025 Interim Report of Konka Group Co. Ltd.
8. Advances to suppliers
(1) Presentation of advances to suppliers by aging
Ending balance Beginning balance
Item
Amount Percentage (%) Amount Percentage (%)
Within 1 year 88793606.83 95.08 101180248.89 81.11
1-2 years 1022208.03 1.09 2820065.05 2.26
2-3 years 2220646.30 2.38 565293.20 0.45
Over 3 years 1350153.27 1.45 20182805.45 16.18
Total 93386614.43 100.00 124748412.59 100.00
Remarks: The amount of advances to suppliers aged over one year at the end of the period was RMB 4593007.60
accounting for 4.92% of the total balance of advances to suppliers of the Group and consists mainly of payments
for undelivered goods or unsettled payments.
(2) Top five advances to suppliers in terms of the ending balance collected by the suppliers
The sum of the top five ending balances categorized by suppliers in the current period was RMB 78995170.26
accounting for 84.59% of the total ending balance.
9. Inventories
(1) Classification
Ending balance
Item
Book balance Provision for depreciation Book value
Raw materials 580191145.43 104675268.70 475515876.73
Semi-finished products 137887987.16 47005194.76 90882792.40
Commodities in stock 2095083690.80 514819789.76 1580263901.04
Commissioned products 1573221.67 1573221.67
Development costs 28263713.02 28263713.02
Developing products 305144099.05 455872.41 304688226.64
Total 3148143857.13 666956125.63 2481187731.50
(Continued)
Beginning balance
Item
Book balance Provision for depreciation Book value
Raw materials 665144044.54 108024878.82 557119165.72
Semi-finished products 110372128.69 42305974.41 68066154.28
Commodities in stock 2189720769.60 491936445.95 1697784323.65
Commissioned products 2235269.96 262121.44 1973148.52
Development costs 26677475.24 26677475.24
Developing products 346650809.82 3622890.30 343027919.52
Total 3340800497.85 646152310.92 2694648186.93
(2) Provision for inventory depreciation
Increased amount in the current period
Item Beginning balance
Provision Others
Raw materials 108024878.82 6755486.75
Semi-finished products 42305974.41 6693692.57
Commodities in stock 491936445.95 72281073.08
Commissioned products 262121.44
982025 Interim Report of Konka Group Co. Ltd.
Increased amount in the current period
Item Beginning balance
Provision Others
Developing products 3622890.30
Total 646152310.92 85730252.40
(Continued)
Decreased amount in the current period
Item Ending balance
Reversal or write-off Others
Raw materials 9443907.19 661189.68 104675268.70
Semi-finished products 1988579.21 5893.01 47005194.76
Commodities in stock 44357776.40 5039952.87 514819789.76
Commissioned products 262121.44
Developing products 3167017.89 455872.41
Total 59219402.13 5707035.56 666956125.63
Specific basis for determining the realizable net value and reasons for inventory falling price reserves and
impairment provision for contract performance costs transferred back or written off during the current period:
Item Specific basis for withdrawal of inventory Reasons for charge-off of provision forfalling price reserves inventories impairment in the current period
Raw materials The realizable net value was lower than the bookvalue They have been sold or used in the current period
Semi-finished products The realizable net value was lower than the bookvalue They have been sold or used in the current period
Commodities in stock The realizable net value was lower than the bookvalue They have been sold in the current period
10. Other current assets
Item Ending balance Beginning balance
Principal and interests of entrusted loans to associated
enterprises 1639023198.51 1590781482.74
Prepayments and deductible taxes and refund of tax
for export receivable 603105939.06 525546353.28
Deferred expenses 21411617.51 18606081.90
Costs receivable for returning goods 7194329.48 14460748.65
Others 4023181.00 19005345.90
Total 2274758265.56 2168400012.47
992025 Interim Report of Konka Group Co. Ltd.
11. Investments in other equity instruments
(1) Investment in other equity instruments
Increase and decrease in the current period
Dividend Accumulated Accumulated
Reason for
gains included in losses included assigning toincome
Beginning other in other
measure at fair
Item Increase in Decrease in
Gains included Losses included Ending recognized
balance comprehensive comprehensive
value of which
the the in other in other Others balance in the changes included
investment investment comprehensive comprehensive current
income at the income at the other
income income period end of the end of thecurrent period current period comprehensiveincome
Beijing Huyu Long-term holding
Entertainment Digital 5901121.80 5901121.80 based on strategic
Technology Co. Ltd. purpose
Feihong Electronics Co. Long-term holding
Ltd. based on strategicpurpose
Long-term holding
ZAEFI based on strategic
purpose
Shenzhen Chuangce Long-term holding
Investment Development based on strategic
Co. Ltd. purpose
Shanlian Information Long-term holding
Technology Engineering 1860809.20 1860809.20 based on strategic
Centre purpose
Shenzhen CIU Science & Long-term holding
Technology Co. Ltd. 953000.00 953000.00 based on strategicpurpose
Shenzhen Digital TV Long-term holding
National Engineering based on strategic
Laboratory Co. Ltd. purpose
Shanghai National
Engineering Research Long-term holding
Centre of Digital TV Co. 2400000.00 2400000.00 based on strategic
Ltd. purpose
Long-term holding
BOHUA UHD 5000001.00 5000001.00 based on strategic
purpose
Total 16114932.00 16114932.00 —
(2) Derecognition at the end of the current period
During the reporting period no circumstances of derecognition of investments in other equity instruments occurred in the Group.
1002025 Interim Report of Konka Group Co. Ltd.
12. Long-term equity investments
Increase and decrease in the current period
Beginning balance Provision forimpairment Profit or loss ofInvestee
(Book value) Increase in the Decrease in the investment
Changes in other
Beginning balance investment investment recognized by the comprehensive
equity method income
Associates:
Kangkong Venture Capital (Shenzhen) Co. Ltd. 5128914.49 28030.28
Nanjing Zhihuiguang Information Technology 2004044.10
Research Institute Co. Ltd. -31774.46
Feidi Technology (Shenzhen) Co. Ltd. 15120554.12 3948380.95
Shenzhen Kangyue Enterprise Co. Ltd. 24977328.88
Foshan Pearl River Media Creative Park Culture
Development Co. Ltd.Kangkai Technology Service (Chengdu) Co. Ltd. 87650.74 -3000.00
Puchuang Jiakang Technology Co Ltd. 3560497.42 1300958.87
Shenzhen Jielunte Technology Co. Ltd. 89059544.64 -3125755.32
Panxu Intelligence Co. Ltd.Orient Excellent (Zhuhai) Asset Management Co. 8608429.66
Ltd. 758469.68
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Investment Fund (Limited Partnership) 334610872.32 -116504.78
Tongxiang Wuzhen Kunyu Venture Capital Co. Ltd. 3527959.96 4035.31
Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co. Ltd. 332606053.56 68817908.06 -3085702.70
Kunshan Kangsheng Investment Development Co. 78658851.02
Ltd. -2626199.05
Shanxi Silk Road Cloud Intelligent Tech Co. Ltd. 3467934.60 -466357.26
Shenzhen Kanghongxing Intelligent Technology Co. 12660222.73
Ltd.Shenzhen Zhongkang Beidou Technology Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
1012025 Interim Report of Konka Group Co. Ltd.
Increase and decrease in the current period
Beginning balance Provision for Profit or loss of
Investee impairment Increase in the Decrease in the investment Changes in other(Book value) Beginning balance investment investment recognized by the comprehensive
equity method income
Wuhan Tianyuan Group Co. Ltd. 545842155.57
Chuzhou Konka Technology Industry Development 31309842.61
Co. Ltd. -3472297.34
Chuzhou Kangjin Health Industrial Development Co. 195156840.19
Ltd. -2655737.66
Nantong Kangjian Technology Industrial Park 106686557.81
Operations and Management Co. Ltd. -2835611.92
Chuzhou Kangxin Health Industry Development Co. 178678863.47
Ltd. -949568.43
Dongguan Guankang Yuhong Investment Co. Ltd. 482685139.04 -15175294.03
Shenzhen Morsemi Semiconductor Technology Co.Ltd.Econ Technology 847418693.43 347737910.02 -682702.96
Dongguan Kangjia New Materials Technology Co. 6231919.24
Ltd.. -818871.96
Chongqing E2info Technology Co. Ltd. 988384342.28 68390441.43 - - -1293383.56 -
Yantai Kangyun Industrial Development Co. Ltd. 60639840.23 -2729355.75
E3info (Hainan) Technology Co. Ltd. 11378307.99 14000000.00 8000000.00
Shenzhen Kangjia Jiapin Intelligent Electrical 5896518.07
Apparatus Technology Co. Ltd. -2926157.83
Shenzhen KONKA E-display Co. Ltd. 93484210.07 4073801.48
Chongqing Yuanlv Benpao Real Estate Co. Ltd. 25740000.00
Shenzhen Kangpeng Digital Technology Co. Ltd. 1310766.92 -328558.61
Yantai Kangtang Construction Development Co. Ltd. 1268280.88 -36804.96
Dongguan Konka Smart Electronic Technology Co. 18648646.28
Ltd. -2154842.13
Beijing Konka Jingyuan Technology Co. Ltd. 687957.04
Chongqing Liangshan Enterprise Management Co. 229695.25
Ltd. -4362.93
1022025 Interim Report of Konka Group Co. Ltd.
Increase and decrease in the current period
Beginning balance Provision for Profit or loss of
Investee impairment
(Book value) Increase in the Decrease in the investment
Changes in other
Beginning balance investment investment recognized by the comprehensive
equity method income
Shenzhen Kangxi Technology Innovation 1041325.74
Development Co. Ltd. -13322.17
Shandong Kangfei Intelligent Electrical Appliances 245911.63
Co. Ltd.Henan Kangfei Intelligent Electric Appliance Co.Ltd.Guangdong Kangyuan Semiconductor Co. Ltd. 7360542.07 -589376.37
Chongqing Kangyiqing Technology Co. Ltd. 635826.26 -100000.00
Zhejiang Kangying Semiconductor Technology Co. 16838151.45
Ltd. 7519550.75 35170.29
KK Smartech Limited 1594091.44 -928701.40
Chongqing Kangjian Photoelectric Technology Co. 3277417.20
Ltd. -1600000.00
Anhui Kangta Supply Chain Management Co. Ltd. 16781006.43 -53491.15
Wuhan Kangtang Information Technology Co. Ltd. 15853661.78 -897317.07
Sichuan Chengrui Real Estate Co. Ltd. 23989768.27 -827877.94
Jiakang Industrial Development (Wuhan) Co. Ltd. 38684412.72 554780.06
Hefei KONSEMI Storage Technology Co. Ltd. 90223618.55 -10036981.30
Xi'an Kang'an Intelligent Storage Technology Co. 5766552.98
Ltd. -82444.41
Sichuan Hongxinchen Real Estate Development Co. 53934595.60
Ltd.Konka Huanjia Environmental Technology Co. Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co. Ltd. -37921.98
Total 4728360853.49 954585219.45 0.00 8000000.00 -42498270.05 35170.29
1032025 Interim Report of Konka Group Co. Ltd.
(Continued)
Increase and decrease in the current period
Ending balance Provision for
Investee Changes in other Cash dividends orprofits declared to Provision set aside
impairment
equities for impairment Others
(Book value) Ending balance
be distributed
Associates:
Kangkong Venture Capital (Shenzhen) Co. Ltd. 5156944.77
Nanjing Zhihuiguang Information Technology
Research Institute Co. Ltd. 1972269.64
Feidi Technology (Shenzhen) Co. Ltd. 913190.37 18155744.70
Shenzhen Kangyue Enterprise Co. Ltd. 24977328.88
Foshan Pearl River Media Creative Park Culture
Development Co. Ltd.Kangkai Technology Service (Chengdu) Co. Ltd. 84650.74
Puchuang Jiakang Technology Co Ltd. 4861456.29
Shenzhen Jielunte Technology Co. Ltd. 85933789.32
Panxu Intelligence Co. Ltd.Orient Excellent (Zhuhai) Asset Management Co.Ltd. 9366899.34
Oriental Jiakang No. 1 (Zhuhai) Private Equity
Investment Fund (Limited Partnership) 334494367.54
Tongxiang Wuzhen Kunyu Venture Capital Co. Ltd. 3531995.27
Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co. Ltd. 329520350.86 68817908.06
Kunshan Kangsheng Investment Development Co.Ltd. 76032651.97
Shanxi Silk Road Cloud Intelligent Tech Co. Ltd. 3001577.34
Shenzhen Kanghongxing Intelligent Technology Co. 12660222.73
Ltd.Shenzhen Zhongkang Beidou Technology Co. Ltd.Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Group Co. Ltd. 8618395.70 -537223759.87
1042025 Interim Report of Konka Group Co. Ltd.
Increase and decrease in the current period
Provision for
Investee Changes in other Cash dividends or
Ending balance
profits declared to Provision set aside
impairment
(Book value)
equities be distributed for impairment
Others Ending balance
Chuzhou Konka Technology Industry Development
Co. Ltd. 27837545.27
Chuzhou Kangjin Health Industrial Development Co.Ltd. 192501102.53
Nantong Kangjian Technology Industrial Park
Operations and Management Co. Ltd. 103850945.89
Chuzhou Kangxin Health Industry Development Co.Ltd. 177729295.04
Dongguan Guankang Yuhong Investment Co. Ltd. 467509845.01
Shenzhen Morsemi Semiconductor Technology Co.Ltd.Econ Technology 846735990.47 347737910.02
Dongguan Kangjia New Materials Technology Co.Ltd.. 5413047.28
Chongqing E2info Technology Co. Ltd. -586270.19 986504688.53 68390441.43
Yantai Kangyun Industrial Development Co. Ltd. 57910484.48
E3info (Hainan) Technology Co. Ltd. -3378307.99 14000000.00
Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 2970360.24
Shenzhen KONKA E-display Co. Ltd. 97558011.55
Chongqing Yuanlv Benpao Real Estate Co. Ltd. 25740000.00
Shenzhen Kangpeng Digital Technology Co. Ltd. 982208.31
Yantai Kangtang Construction Development Co. Ltd. 1231475.92
Dongguan Konka Smart Electronic Technology Co.Ltd. 16493804.15
Beijing Konka Jingyuan Technology Co. Ltd. 687957.04
Chongqing Liangshan Enterprise Management Co.Ltd. 225332.32
Shenzhen Kangxi Technology Innovation
Development Co. Ltd. 1028003.57
1052025 Interim Report of Konka Group Co. Ltd.
Increase and decrease in the current period
Ending balance Provision for
Investee Changes in other Cash dividends or Provision set aside impairment(Book value)
equities profits declared to for impairment Others Ending balancebe distributed
Shandong Kangfei Intelligent Electrical Appliances 245911.63
Co. Ltd.Henan Kangfei Intelligent Electric Appliance Co.Ltd.Guangdong Kangyuan Semiconductor Co. Ltd. 6771165.70
Chongqing Kangyiqing Technology Co. Ltd. 535826.26
Zhejiang Kangying Semiconductor Technology Co.Ltd. 24392872.49
KK Smartech Limited 665390.04
Chongqing Kangjian Photoelectric Technology Co.Ltd. 1677417.20
Anhui Kangta Supply Chain Management Co. Ltd. 16727515.28
Wuhan Kangtang Information Technology Co. Ltd. 14956344.71
Sichuan Chengrui Real Estate Co. Ltd. 23161890.33
Jiakang Industrial Development (Wuhan) Co. Ltd. 39239192.78
Hefei KONSEMI Storage Technology Co. Ltd. 80186637.25
Xi'an Kang'an Intelligent Storage Technology Co.Ltd. 5684108.57
Sichuan Hongxinchen Real Estate Development Co.Ltd. 53934595.60
Konka Huanjia Environmental Technology Co. Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co. Ltd. 1029610.00 991688.02
Total 9531586.07 -540158728.05 4128207439.61 954585219.45
1062025 Interim Report of Konka Group Co. Ltd.
13. Other non-current financial assets
Item Ending balance Beginning balance
Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership
(Limited Partnership) 227987130.83 230264035.04
China Asset Management-Jiayi Overseas Designated Plan 200732067.00 200732067.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment
Partnership (Limited Partnership) 197621072.79 197621072.79
Yibin OCT Sanjiang Properties Co. Ltd. 172584874.79 174599313.55
Chongqing Kangxin Equity Investment Fund Limited Partnership
(Limited Partnership) 144028481.56 144028481.56
Yancheng Kangyan Information Industry Investment Partnership
(Limited Partnership) 134046271.83 139166271.83
Daye Trust - Hui Libao No. 19 100000000.00 100000000.00
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 65840745.07 66080293.70
Yibin Kanghui Electronic Information Industry Equity Investment
Partnership (Limited Partnership) 59264288.31 59264288.31
Chuzhou Jiachen Information Technology Consulting Service
Partnership (Limited Partnership) 58296141.16 58296141.16
Tianjin Property No. 8 Enterprise Management Partnership (Limited
Partnership) 28470259.22 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 1389872366.01 1399593775.65
Shenzhen Gaohong Enterprise Consulting Management Partnership
(Limited Partnership) 120874956.69 120874956.69
Nanjing Kangfeng Dejia Asset Management Partnership (Limited
Partnership) 100000000.00 100000000.00
Shenzhen Zitang No.1 Enterprise Consulting Management Partnership
(Limited Partnership) 99000000.00 99000000.00
Shenzhen Beihu Technology Partnership (Limited Partnership) 59735232.88 59735232.88
Xi'an Bihuijia Enterprise Management Consulting Partnership (Limited
Partnership) 14685194.12 14685194.12
Shanxi Kangmengrong Enterprise Management Consulting Partnership
(Limited Partnership) 8520728.55 8520728.55
Ningbo Yuanqing No.9 Investment Partnership (Limited Partnership)
Subtotal of debt investments 402816112.24 402816112.24
Total 1792688478.25 1802409887.89
14. Investment property
(1) Investment properties measured at cost
Item Properties and buildings Land use right Total
I. Original book value
1. Beginning balance 1715988662.48 172115175.84 1888103838.32
2. Increased amount in the current period 3456622.25 249409.16 3706031.41
(1) External purchase
(2) Transfer-in of inventories\fixed
assets\construction in progress\intangible 3456622.25 249409.16 3706031.41
assets
3. Decreased amount in the current period 31312418.03 179223.65 31491641.68
(1) Disposal 31312418.03 179223.65 31491641.68
1072025 Interim Report of Konka Group Co. Ltd.
Item Properties and buildings Land use right Total
(2) Other transfer out
4. Ending balance 1688132866.70 172185361.35 1860318228.05
II. The accumulative depreciation and
accumulative amortization
1. Beginning balance 212582498.12 24678100.69 237260598.81
2. Increased amount in the current period 25311246.43 1886772.94 27198019.37
(1) Provision or amortization 25311246.43 1886772.94 27198019.37
3. Decreased amount in the current period 2686543.09 58225.49 2744768.58
(1) Disposal 2686543.09 58225.49 2744768.58
(2) Other transfer out
4. Ending balance 235207201.46 26506648.14 261713849.60
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 1452925665.24 145678713.21 1598604378.45
2. Beginning book value 1503406164.36 147437075.15 1650843239.51
(2) Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the current period.
(3) Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
(4) Investment property converted and measured at fair value in the current period
There was no conversion of investment property measured at fair value in the current period.
(5) Investment properties in the process of title certificate handling
Item Book value Reason that the certificate of titlewas not completed
Standard electronic product plant project of Suining 367725879.04 The completion filing has not beenKonka done for the project
Houses and buildings of Xi'an Kanghong 101368468.34 Being handled
Houses and buildings of Yantai Kangjin 13975123.90 Being handled
(6) Investment property with restricted ownership or use right
Item Book value Reason for restriction
Guangming Technology Center 548064456.53 As collateral for loan
Houses and buildings of Xi'an Kanghong 101368468.34 As collateral for loan
Properties and buildings of Shanxi Konka Intelligent 36321306.25 As collateral for loan
Houses and buildings of Yantai Kangjin 13975123.90 As collateral for loan
Houses and buildings of Nantong Kanghai 72330819.84 As collateral for loan
Total 772060174.86
1082025 Interim Report of Konka Group Co. Ltd.
15. Fixed assets
Item Ending balance Beginning balance
Fixed Assets 4857130116.51 5005836928.31
Liquidation of fixed assets
Total 4857130116.51 5005836928.31
1092025 Interim Report of Konka Group Co. Ltd.
(1) Fixed assets
Item Properties and buildings Machinery equipment Electronic Transportation Other equipmentequipment vehicle Total
I. Original book value
1. Beginning balance 3961200953.13 3483070002.32 293459158.90 52749559.59 191290520.96 7981770194.90
2. Increased amount in the current
period 2052073.17 52380308.16 4479517.75 394444.99 1027618.32 60333962.39
(1) Purchase 711584.78 9032020.81 4362761.94 394444.99 1008795.30 15509607.82
(2) Transfer-in of construction in
progress 39462009.35 115445.13 18823.02 39596277.50
(3) Other increase 1340488.39 3886278.00 1310.68 5228077.07
3. Decreased amount in the current
period 20422958.26 132326619.91 1796058.35 1752688.32 2180896.98 158479221.82
(1) Disposal or write-off 20018497.00 127340779.21 1796058.35 1752688.32 640501.84 151548524.72
(2) Decrease for loss of controlling
right 1537858.92 1537858.92
(3) Other decreases 404461.26 4985840.70 2536.22 5392838.18
4. Ending balance 3942830068.04 3403123690.57 296142618.30 51391316.26 190137242.30 7883624935.47
II. Accumulated depreciation
1. Beginning balance 798169871.19 1638817015.47 211617889.35 41521906.29 133797222.94 2823923905.24
2. Increased amount in the current
period 53246293.61 119402276.16 12702611.27 1328717.28 6524138.13 193204036.45
(1) Provision 53246293.61 119402276.16 12702611.27 1279672.86 6524138.13 193154992.03
(2) Other increases 49044.42 49044.42
3. Decreased amount in the current
period 11467342.01 116290291.41 1588022.97 1345598.25 956574.64 131647829.28
(1) Disposal or write-off 11462791.85 115680999.37 1588022.97 1345598.25 516753.27 130594165.71
(2) Decrease for loss of controlling
right 390776.95 390776.95
(3) Other decreases 4550.16 609292.04 - - 49044.42 662886.62
4. Ending balance 839948822.79 1641929000.22 222732477.65 41505025.32 139364786.43 2885480112.41
III. Provision for impairment
1102025 Interim Report of Konka Group Co. Ltd.
Item Properties and buildings Machinery equipment Electronic Transportation Other equipmentequipment vehicle Total
1. Beginning balance 24030941.23 121076848.24 847936.84 832646.14 5220988.90 152009361.35
2. Increased amount in the current
period
(1) Provision
(2) Other increases
3. Decreased amount in the current
period 10994654.80 10994654.80
(1) Disposal or write-off 10994654.80 10994654.80
(2) Decrease for loss of controlling
right
(3) Other decreases
4. Ending balance 24030941.23 110082193.44 847936.84 832646.14 5220988.90 141014706.55
IV. Book value
1. Ending book value 3078850304.02 1651112496.91 72562203.81 9053644.80 45551466.97 4857130116.51
2. Beginning book value 3139000140.71 1723176138.61 80993332.71 10395007.16 52272309.12 5005836928.31
1112025 Interim Report of Konka Group Co. Ltd.
(2) Temporarily idle fixed assets
Item Original book value Accumulated Provision fordepreciation impairment Book value
Housing and building 263606918.96 156976184.84 7943313.79 98687420.33
Machinery equipment 883982056.76 545732526.62 92270656.08 245978874.06
Electronic equipment 8758436.73 7519569.68 91675.05 1147192.00
Transportation vehicle 3830739.81 3626918.66 0.00 203821.15
Other equipment 1248617.01 1089247.58 20212.81 139156.62
Total 1161426769.27 714944447.38 100325857.73 346156464.16
(3) Fixed assets leased out through operating leases
Item Ending book value
Machinery equipment 15459990.54
Electronic equipment 211392.70
Transportation vehicle 13854.83
Other equipment 210975.77
Total 15896213.84
(4) Fixed assets without the certificate of title
Reason that
Item Original book value Accumulated
Provision the certificate
depreciation for Net book valueimpairment of title was notcompleted
Smart colour
TV project of
Fenggang 425352133.21 18335915.21 407016218.00 Being handled
Konka
Anhui Konka's
buildings 185473896.50 16661292.16 168812604.34 Being handled
Frestec Smart
Home
properties and 20130613.64 819012.00 19311601.64 Being handled
buildings
Standard The
electronic completion
product plants 1544085.19 116007.80 1428077.39 filing has not
in Sunning been done forthe project
Yikang
Building 76610752.33 44661589.41 - 31949162.92 Being handled
property
(5) Impairment test of fixed assets
There was no impairment of the Group's fixed assets during the reporting period.
(6) Fixed assets with restricted ownership or use right
Item Ending book value Reason for restriction
Anhui Konka's buildings 582986046.00 As collateral for loan
Housing and buildings of Chongqing Konka 327223961.72 As collateral for loan
Properties and buildings of Shanxi Konka Intelligent 282088038.52 As collateral for loan
Housing and buildings of Anhui Tongchuang 132850593.68 As collateral for loan
Housing and buildings of Frestec Refrigeration 75216522.74 As collateral for loan
1122025 Interim Report of Konka Group Co. Ltd.
Item Ending book value Reason for restriction
Buildings of Konka Group 56203268.61 As collateral for loan
Housing and buildings of Jiangsu Konka Smart 31486938.88 As collateral for loan
Housing and buildings of XingDa HongYe 25821100.08 As collateral for loan
Machinery equipment of Xinfeng Microcrystalline 6759500.50 As collateral for finance lease
Housing and buildings of Jiangxi Konka 1840773.06 Original shareholder guaranteemortgage
Total 1522476743.79
1132025 Interim Report of Konka Group Co. Ltd.
16. Construction in progress
(1) Construction in progress
Ending balance Beginning balance
Item
Book balance Provision forimpairment Book value Book balance
Provision for
impairment Book value
Jiangxi High-permeability Crystalisation Kiln 246576748.57 56212948.57 190363800.00 246576748.57 56387538.57 190189210.00
Construction of Suining Electronic Industrial Park
Workshops 159320030.73 159320030.73
177739108.43177739108.43
Production Line Renovation Project of Jiangxi Konka 84109378.06 17407295.14 66702082.92 85354578.78 17688178.78 67666400.00
Suining Konka Hongye Plant Decoration Project 91726325.18 91726325.18 84574481.80 84574481.80
Construction and Decoration Project of Phase I of 53096645.21 53096645.21
Dongguan Konka Science and Technology Industrial 54897004.54 54897004.54
Park
Other projects 385287973.59 33929571.25 351358402.34 333576197.93 33799544.33 299776653.60
Total 1021917460.67 107549814.96 914367645.71 980917760.72 107875261.68 873042499.04
(2) Changes in major projects under construction in the current period
Increased amount Decreased amount in the current period
Name of item Beginning balance in the current Transfer to fixed Ending balance
period assets Other decreases
Construction of Suining Electronic Industrial Park Workshops 177739108.43 239201.01 18658278.71 159320030.73
(Continued)
Accumulated Including: the Capitalization
Budget amount (RMB Proportion of the Engineering amount of the rate of theName of item amount of Capitalten thousand yuan) project accumulative capitalized interests in theinput in budget (%) Schedule (%) interestcapitalization interests in the current period
resources
current period (%)
Construction of Suining Electronic
Industrial Park Workshops 76342.22 95.00 95.00 Self-funded
(3) Provision set aside for impairment of construction in progress in the current period
Type Beginning balance Increased amount in the Decreased amount incurrent period the current period Ending balance Reason for withdrawal
1142025 Interim Report of Konka Group Co. Ltd.
Type Beginning balance Increased amount in the Decreased amount incurrent period the current period Ending balance Reason for withdrawal
Production Line Renovation Project of 17688178.78 17688178.78 Failure to achieve serviceableJiangxi Konka conditions
Production Line Project of Jiangxi High
Transparent Substrate 90183005.23 89857558.51
Failure to achieve serviceable
325446.72 conditions
Other projects 4077.67 4077.67 Failure to achieve serviceableconditions
Total 107875261.68 325446.72 107549814.96 —
(4) Impairment test of construction in progress
There was no impairment of the Group's construction in progress during the reporting period
17. Right-of-use assets
Item Properties and buildings Machinery equipment Electronic equipment Total
I. Original book value
1. Beginning balance 283992075.23 428197.71 329550.15 284749823.09
2. Increased amount in the current
period 1030529.41 1030529.41
(1) Rent 1030529.41 1030529.41
(2) Others
3. Decreased amount in the current
period 21972662.71 21972662.71
(1) Decrease for loss of controlling
right
(2) Others 21972662.71 21972662.71
4. Ending balance 262019412.52 1458727.12 329550.15 263807689.79
II. Accumulated depreciation
1. Beginning balance 106211054.04 171279.11 181810.59 106564143.74
2. Increased amount in the current
period 24667768.24 185948.85 36824.71 24890541.80
(1) Provision 24667768.24 185948.85 36824.71 24890541.80
(2) Others
1152025 Interim Report of Konka Group Co. Ltd.
Item Properties and buildings Machinery equipment Electronic equipment Total
3. Decreased amount in the current
period 8395189.59 8395189.59
(1) Decrease for loss of controlling
right
(2) Others 8395189.59 8395189.59
4. Ending balance 122483632.69 357227.96 218635.30 123059495.95
III. Provision for impairment
1. Beginning balance
2. Increased amount in the current
period
(1) Provision
3. Decreased amount in the current
period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 139535779.83 1101499.16 110914.85 140748193.84
2. Beginning book value 177781021.19 256918.60 147739.56 178185679.35
Remarks: other decreases in original value and accumulated depreciation are mainly due to lease termination.
18. Intangible assets
(1) List of intangible assets
Item Land use right Trademark right Patent and know-how Franchise rights Right to use softwareand others Total
I. Original book value
1. Beginning balance 817198544.35 72197456.33 112424969.79 192998879.51 161769606.35 1356589456.33
2. Increased amount in the current
period 101705.75 97309.37 6262251.31 6461266.43
(1) Purchase 97309.37 1174611.78 1271921.15
(2) Transfer-in of construction in
progress 5062167.83 5062167.83
1162025 Interim Report of Konka Group Co. Ltd.
Item Land use right Trademark right Patent and know-how Franchise rights Right to use softwareand others Total
(3) Other reasons 101705.75 25471.70 127177.45
3. Decreased amount in the current
period 6976554.62 4144403.75 25471.70 771835.35 11918265.42
(1) Disposal or write-off 6976554.62 4144403.75 771835.35 11892793.72
(2) Other reasons 25471.70 25471.70
4. Ending balance 810323695.48 72197456.33 108377875.41 192973407.81 167260022.31 1351132457.34
II. Accumulated amortization
1. Beginning balance 108080921.57 23419142.45 67302648.17 22265157.50 101732539.26 322800408.95
2. Increased amount in the current
period 8721504.98 2081757.98 29709.11 5360372.46 7723852.33 23917196.86
(1) Provision 8721504.98 2081757.98 29709.11 5360372.46 7723852.33 23917196.86
(2) Others 0.00
3. Decreased amount in the current
period 1195057.97 1243321.14 771835.35 3210214.46
(1) Disposal or write-off 1195057.97 1243321.14 771835.35 3210214.46
4. Ending balance 115607368.58 25500900.43 66089036.14 27625529.96 108684556.24 343507391.35
III. Provision for impairment
1. Beginning balance 564705.88 44943521.62 235294.12 45743521.62
2. Increased amount in the current
period
(1) Provision
3. Decreased amount in the current
period 2901082.61 2901082.61
(1) Disposal 2901082.61 2901082.61
4. Ending balance 564705.88 42042439.01 235294.12 42842439.01
IV. Book value
1. Ending book value 694716326.90 46131850.02 246400.26 165347877.85 58340171.95 964782626.98
2. Beginning book value 709117622.78 48213608.00 178800.00 170733722.01 59801772.97 988045525.76
1172025 Interim Report of Konka Group Co. Ltd.
(2) Land use right without the certificate of title
The Group did not have land use rights for which no title deeds had been issued.
(3) Significant intangible assets
Item Ending book value Remaining amortization period(year)
Land use right of Dongguan Konka 179728476.67 44.17
Concessions of Yibin Konka 165749051.94 15.33
Land use right of Shanxi Konka Intelligent 110871416.53 46.08
Land use right of Frestec Smart Home
Technology 87371656.18 45.25
Total 543720601.32 —
(4) Intangible assets with restricted ownership or using right
Item Ending book value Reason for restriction
Land use right of Dongguan Konka 179728476.67 As collateral for loan
Land use right of Shanxi Konka Intelligent 110871416.53 As collateral for loan
Land use right of Frestec Smart Home
Technology 87371656.18 As collateral for loan
Land usage right of Frestec Refrigeration 60916416.54 As collateral for loan
Land use right of Anhui Konka 52073476.00 As collateral for loan
Land use right of Chongqing Konka 43121034.57 As collateral for loan
Land use right of Anhui Tongchuang 16721699.63 As collateral for loan
Land use right of Jiangsu Konka Smart 13040564.35 As collateral for loan
Land use right of XingDa HongYe 12410217.91 As collateral for loan
Land use right of Konka Guangming 4006974.33 As collateral for loan
Total 580261932.71
19. Goodwill
(1) Original book value of goodwill
Increased amount in the Decreased amount in
current period the current period
Investee Beginning balance Formed Ending balance
through
business Others Disposal Others
combinations
Jiangxi Konka 340111933.01 340111933.01
Xingda Hongye 44156682.25 44156682.25
Total 384268615.26 384268615.26
(2) Provision for goodwill impairment
Increased amount in the Decreased amount in
Investee Beginning balance current period the current period Ending balance
Provision Others Disposal Others
Jiangxi Konka 340111933.01 340111933.01
Xingda Hongye 21959947.14 21959947.14
Total 362071880.15 362071880.15
1182025 Interim Report of Konka Group Co. Ltd.
20. Long-term deferred expenses
Item Beginning balance Increased amount in Amortization in the
Other decreases
the current period current period in the current Ending balanceperiod
Decoration 296854146.58
expenses 1672395.97 31630724.69 1998074.76 264897743.10
Shoppe 30536411.17
expense 14090026.02 12822548.81 31803888.38
Others 204790603.88 35159067.72 25688760.43 7124989.51 207135921.66
Total 532181161.63 50921489.71 70142033.93 9123064.27 503837553.14
21. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets that have not been offset
Ending balance Beginning balance
Item Deductible Deductible
temporary Deferred income taxassets temporary
Deferred income tax
differences differences assets
Deductible losses 3935722061.18 818391879.38 4072599866.74 821192030.16
Provision for asset
impairment 49309414.79 392844105.98 1711958350.44 383396704.79
Deferred income 173574909.80 38954053.32 165698149.55 36951815.16
Accrued expenses 178989400.62 84718430.49 154175886.01 30405673.44
Unrealized internal sales
profits 30741499.00 6437267.93 21418121.43 5354530.36
Lease Liabilities 165741273.56 37094425.18 190036774.82 46680049.35
Others 236027306.91 7491361.37 303824133.13 68258498.61
Total 4770105865.86 1385931523.65 6619711282.12 1392239301.87
(2) Deferred income tax liabilities that have not been offset
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Estimated added value of
assets not under the same 142762435.39 31308982.04 148603098.25 32684086.93
control
Accelerated depreciation of
fixed assets 45343272.84 6799980.27 2198376.27 443840.17
Financial assets measured at
fair value through current 1004553791.54 251138447.89 164553726.22 41138431.56
profit or loss
Right-of-use assets 142574517.27 34885726.78 177009862.45 43672811.85
Others 49447813.30 12361953.33 79608274.18 15360004.97
Total 1384681830.34 336495090.31 571973337.37 133299175.48
(3) Breakdown of unrecognized deferred tax assets
Item Ending balance Beginning balance
Deductible losses 5511658855.03 5076924357.43
Deductible temporary differences 3350422530.55 4057061699.25
Total 8862081385.58 9133986056.68
1192025 Interim Report of Konka Group Co. Ltd.
(4) Deductible losses of unrecognized deferred tax assets matured/will mature in the following year
Year Ending amount Beginning amount
2025242482746.46252950466.34
2026292117232.05313956730.12
2027320981781.84307074252.94
2028724791406.34710259863.04
20291685938233.653492683044.99
2030 and following years 2245347454.69
Total 5511658855.03 5076924357.43
22. Other non-current assets
Ending balance
Item
Book balance Provision forimpairment Book value
Prepayment for land-purchase 1029457502.92 1029457502.92
Prepayment for construction
equipment and other long-term assets 101534227.99 101534227.99
Total 1130991730.91 1130991730.91
(Continued)
Beginning balance
Item
Book balance Provision forimpairment Book value
Prepayment for land-purchase 1029457502.92 1029457502.92
Prepayment for construction
equipment and other long-term assets 119220467.55 119220467.55
Total 1148677970.47 1148677970.47
23. Assets with restricted ownership or use right
Ending
Item
Book balance Book value Type ofrestriction Restriction details
Among them RMB 699851445.35 is
the margin deposit which is pledged for
Time borrowing or issuing bank acceptance
Monetary assets 1323385743.34 1323385743.34 deposit bills; RMB 540851836.28 is a time
margins etc. deposit that cannot be withdrawn in
advance; RMB 82682461.71 was
restricted due to other reasons.Accounts
receivable 1397381.21 1368874.62 Pledge In pledge for loan
Inventories 303594015.63 303138143.22 Mortgage As collateral for loan
Investment
property 869826552.89 772060174.86 Mortgage As collateral for loan
Fixed Assets 1817480139.76 1522476743.79 Mortgage As collateral for finance lease loan andformer shareholder guarantee
Intangible Assets 664320249.24 580261932.71 Mortgage As collateral for loan
Total 4980004082.07 4502691612.54 — —
1202025 Interim Report of Konka Group Co. Ltd.
(Continued)
Beginning
Item
Book balance Book value Type ofrestriction Restriction details
Among them RMB 556608881.87
was the margin deposit which is
pledged for borrowing or issuing
Time bank acceptance bills; RMB
Monetary assets 1332589771.28 1332589771.28 deposit 567478893.23 was the fixed deposit
margins etc. that cannot be withdrawn in advance
which is pledged for borrowing;
RMB 208501996.18 was restricted
due to other reasons.Accounts
receivable 1837337.71 1798852.71 Pledge In pledge for loan
Notes receivable 15900000.00 15900000.00 Pledge In pledge for the issuance of bankacceptance bill
Inventories 383413182.26 379790291.96 Mortgage As collateral for loan
Investment
property 790608780.11 712454010.27 Mortgage As collateral for loan
Fixed Assets 1832372199.20 1551889522.63 Mortgage As collateral for finance lease loanand former shareholder guarantee
Intangible Assets 664764256.55 587351084.33 Mortgage Mortgage and mortgage borrowingsunder finance lease
Total 5021485527.11 4581773533.18 — —
24. Short-term borrowings
(1) Classification of short-term borrowings
Type of borrowings Ending balance Beginning balance
Unsecured loan 5229925838.52 4709049751.78
Guaranteed loan 627434847.20 629950527.05
As collateral for loan 404888324.44 402171189.43
Total 6262249010.16 5741171468.26
(2) Outstanding short-term borrowings overdue
There were no outstanding short-term borrowings overdue at the end of the current period.
25. Notes payable
Type of note Ending balance Beginning balance
Bank acceptance bills 861834837.74 850916858.18
Trade Acceptance 238209458.27 299393998.52
Total 1100044296.01 1150310856.70
26. Accounts payable
(1) List of accounts payable
Item Ending balance Beginning balance
Within 1 year 2245445485.44 2295798887.75
1 to 2 years 76595607.37 194600008.24
2 to 3 years 70550448.52 101677548.46
Over 3 years 222038349.01 182539343.79
1212025 Interim Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
Total 2614629890.34 2774615788.24
(2) Significant accounts payable with aging over 1 year or overdue
Unit Ending balance Reason for non-repayment or carry-over
Company A 51419595.21 Not settled yet
Company B 34189624.82 Not settled yet
Company C 30327400.00 In litigation
Company D 10600000.00 Not settled yet
Total 126536620.03 —
27. Other payables
Item Ending balance Beginning balance
Interest payable
Dividends payable
Other payables 1500748130.42 1676154887.59
Total 1500748130.42 1676154887.59
(1) Other accounts payable presented based on the fund nature
Nature of fund Ending balance Beginning balance
Trading funds 529891735.77 489457474.93
Expenses payable 369646077.60 539342363.22
Related party borrowing 200234627.95 221405227.76
Cash deposit and front 298890394.76 283501144.00
Advance payment 4592810.04 7758315.35
Equity payable 24302796.96 24302796.96
Others 73189687.34 110387565.37
Total 1500748130.42 1676154887.59
(2) Significant other accounts payable with an age of more than one year or overdue
Unit Ending balance Reason for non-repayment or carry-over
Company E 195755182.15 Principal and interest of outstanding loans
Company F 30000000.00 Performance bond
Total 225755182.15 —
28. Advances from customers
Type Ending balance Beginning balance
Rents 2429184.01 3481262.87
Total 2429184.01 3481262.87
29. Contract liabilities
(1) Contract liabilities
Item Ending balance Beginning balance
Sales advances received 490890933.64 623555669.97
Total 490890933.64 623555669.97
Remarks: Contract liabilities over one year are detailed in Note "VII.41. Other non-current liabilities".
1222025 Interim Report of Konka Group Co. Ltd.
(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 period.
(3) Significant changes in book value in the current period
There were no significant changes in book value in the current period.
30. Employee compensation payable
(1) List of employee compensation payable
Item Beginning balance Increased amount in Decreased amount inthe current period the current period Ending balance
Short-term remuneration 237237008.22 592281720.25 653932041.70 175586686.77
Post-employment benefits-
defined contribution plans 1032772.61 60528785.51 59714142.82 1847415.30
Dismissal benefits 5462068.95 8297029.00 13050677.78 708420.17
Total 243731849.78 661107534.76 726696862.30 178142522.24
(2) Short-term compensation
Item Beginning balance Increased amount in Decreased amount inthe current period the current period Ending balance
Salaries bonuses allowances
and subsidies 230731246.88 517030852.54 579039963.02 168722136.40
Employee benefits 3334946.15 22128455.05 22248822.21 3214578.99
Social insurance premiums 533555.71 25104684.39 24802965.99 835274.11
Including: Medical insurance
premiums 387627.84 22080804.93 21856168.54 612264.23
Work injury insurance
premiums 77640.15 2193263.09 2136508.52 134394.72
Maternity insurance
premiums 68287.72 830616.37 810288.93 88615.16
Housing fund 507627.65 22970479.45 22402120.15 1075986.95
Labour union funds and
education funds 1563130.18 5047248.82 4871668.68 1738710.32
Others 566501.65 566501.65
Total 237237008.22 592281720.25 653932041.70 175586686.77
(3) Defined contribution plans
Item Beginning balance Increased amount in Decreased amount inthe current period the current period Ending balance
Basic endowment
management insurance 904488.43 58298966.66 57449236.77 1754218.32
Unemployment insurance
premiums 128284.18 2229818.85 2264906.05 93196.98
Total 1032772.61 60528785.51 59714142.82 1847415.30
31. Taxes and surcharges payable
Item Ending balance Beginning balance
Enterprise income tax 4374253.83 46039928.61
VAT 15056926.04 18304436.27
Property tax 13059493.38 11724042.19
Stamp duty 5194558.62 8598131.85
Land use tax 3520940.06 3640999.21
1232025 Interim Report of Konka Group Co. Ltd.
Item Ending balance Beginning balance
Personal income tax 2234283.00 2590216.18
Tariff 1522792.71 1584862.54
City construction and maintenance tax 142486.10 455815.56
Education fees and local education Surcharge 148000.55 384461.10
Others 1737281.17 1289817.07
Total 46991015.46 94612710.58
32. Non-current liabilities maturing within one year
Item Ending balance Beginning balance
Long-term borrowings due within one year 6184831365.98 4099941220.89
Bonds payable due within one year 2505565526.35 2510473199.20
Long-term payables due within one year 446979.26 452824.05
Lease liabilities due within one year 33655725.32 44667151.05
Total 8724499596.91 6655534395.19
33. Other current liabilities
Item Ending balance Beginning balance
Tax to be charged off 22580136.40 39793570.78
Accounts payable paid by endorsement of
outstanding notes at the end of the Reporting Period 15897557.29 12820620.61
Refunds payable 7721251.81 17262340.52
Total 46198945.50 69876531.91
34. Long-term borrowings
Type of borrowings Ending balance Beginning balance
Guaranteed loan 3678601282.97 3426786189.06
Unsecured loan 2201640850.03 2407276815.65
Entrusted borrowings 2157440824.34 2125382964.61
As collateral for loan 862916389.58 1271960335.66
In pledge for loan 391007668.97 399184717.84
Less: Amount due within one year (see Note VIII.32 6184831365.98 4099941220.89
for details)
Total 3106775649.91 5530649801.93
35. Bonds payable
(1) Classification
Item Ending balance Beginning balance
Corporate bonds 5210997413.16 4805666700.25
Less: Bonds payable due within one year (see Note 2505565526.35 2510473199.20VIII.32 for details)
Total 2705431886.81 2295193501.05
1242025 Interim Report of Konka Group Co. Ltd.
(2) Changes in bonds payable
Name Total par value Coupon Issue date Bond Issue amount Beginning balance Issuance in the Accrue interest by Amortization of Repayment in the Defaultrate maturity current period par value premium/discount current period Ending balance status
22 Konka
01 (note 1200000000.00 3.23% 2022/7/14 3 years 1195800000.00 1218719622.62 19380000.00 No
*)660377.381238760000.00
22 Konka
03 (note 600000000.00 3.30% 2022/9/8 3 years 597900000.00 606159748.49 9900000.00 No
*)330188.74616389937.23
22 Konka
05 (note 600000000.00 3.50% 2022/10/18 3 years 597900000.00 604754717.04 10500000.00 No
*)330188.74615584905.78
24 Konka
01 (note 1500000000.00 4.00% 2024/1/29 3 years 1495200000.00 1552452830.14 30000000.00 No
*)754716.961583207547.10
24 Konka
02 (note 400000000.00 4.00% 2024/3/18 3 years 398720000.00 411742557.65 8000000.00 60000000.00 No
*)201257.86359943815.51
24 Konka
03 (note 400000000.00 4.03% 2024/3/18 3 years 398720000.00 411837224.31 8060000.00 16000000.00 No
*)201257.86404098482.17
25 Konka
01 (Note 410000000.00 3.50% 2025/6/23 3 years 408688000.00 408688000.00 318888.89 16120000.00 No
*)125836.48393012725.37
Total 5110000000.00 — — — 5092928000.00 4805666700.25 408688000.00 86158888.89 2603824.02 92120000.00 5210997413.16 —
Note * : On July 14 2022 the Company issued RMB 1.2 billion of publicly placed corporate bonds with the duration of three years the annual interest rate of 3.23% and
the due date of July 14 2025.Note* : On September 8 2022 the Company issued RMB 600 million of privately placed corporate bonds with the duration of three years the annual interest rate of 3.30%
and the due date of September 8 2025.Note * : On October 18 2022 the Company issued RMB 600 million of privately placed corporate bonds with the duration of three years the annual interest rate of 3.50%
and the due date of October 18 2025.Note * : On January 29 2024 the Company issued RMB 1.5 billion of privately placed corporate bonds with the duration of three years (with the issuer's option to adjust
the coupon rate and the investors' put option attached at the end of Year 2) the annual interest rate of 4.00% and the due date of January 29 2027.Note * : On March 18 2024 the Company issued RMB 400 million of privately placed corporate bonds with the duration of three years (with the issuer's option to adjust
the coupon rate and the investors' put option attached at the end of Year 2) the annual interest rate of 4.00% and the due date of March 18 2027.Note * : On March 18 2024 the Company issued RMB 400 million of privately placed corporate bonds with the duration of three years the annual interest rate of 4.03%
and the due date of March 18 2027.
1252025 Interim Report of Konka Group Co. Ltd.
Note * : On June 23 2025 the Company issued RMB 410 million of privately placed corporate bonds with the duration of three years (with the issuer's option to adjust the
coupon rate and the investors' put option attached at the end of Year 2) the annual interest rate of 3.50% and the due date of June 23 2028.
1262025 Interim Report of Konka Group Co. Ltd.
36. Lease liabilities
Item Ending balance Beginning balance
Lease Liabilities 151884328.17 191228739.57
Less: Lease liabilities due within one year (see Note VIII.32 for
details) 33655725.32 44667151.05
Total 118228602.85 146561588.52
37. Long-term payables
Item Ending balance Beginning balance
Accrued finance lease outlay 5028984.87 6314362.65
Less: Unrecognized financing expenses 231318.00 356990.36
Amount above due within one year (see Note VIII.32 for details) 446979.26 452824.05
Total 4350687.61 5504548.24
38. Long-term employee compensations payable
Item Ending balance Beginning balance
Termination benefits-net liabilities of defined contribution plans 4562989.27 4608659.47
Total 4562989.27 4608659.47
39. Estimated liabilities
Item Ending balance Beginning balance Forming reason
Performance compensation 346222251.09 346222251.09contingent consideration
Product quality assurance 94816463.20 80603137.10 After-sales of householdappliances
Pending litigation 206591.51 206591.51
Discard expenses 1436095.41 1401752.49
Total 442681401.21 428433732.19 —
40. Deferred income
(1) Classification of deferred income
Decreased amount
Item Beginning balance Increased amount inthe current period in the current Ending balance Forming reasonperiod
Government
grants 393437007.37 31610810.87 37060229.49 387987588.75
Related to
assets/income
Total 393437007.37 31610810.87 37060229.49 387987588.75 —
1272025 Interim Report of Konka Group Co. Ltd.
(2) Government grant items
Amount included in Amount recognized
Government grant items Beginning balance New grant amount in non-operating Related tothe current period revenue in the as other income in Other changes Ending balance assets/income
current period the current period
Plant construction subsidy for
Yibin Konka Industrial Park 101225904.13 - - 1159766.16 - 100066137.97
Related to
assets
Rewards and subsidies for
Special Project for Supporting
the Development of Advanced
Manufacturing and Modern 31510328.22 - - 850835.25 - 30659492.97
Related to
assets
Service Industry of Henan
Frestec Smart Home
Medical waste centralized
treatment project in Gaoxian 27430784.61 - - 865869.78 - 26564914.83 Related to
County Yibin City assets
Industrial support funds for
Suining Konka Industrial Park 19776548.54 - - 119968.44 - 19656580.10
Related to
assets
Industry rewards and subsidies
of Henan Frestec Smart Home 19734932.95 - - 211226.75 - 19523706.20
Related to
assets
Returned payments for land by
Chongqing Konka 17541818.31 - - 196363.62 - 17345454.69
Related to
assets
Plant decoration subsidy for
Yibin Konka Industrial Park 8635292.92 3000000.00 - 886274.40 - 10749018.52
Related to
assets
Equipment subsidy for Konka
Xinyun Semiconductor 8797331.45 - - 942534.96 - 7854796.49 Related to
(Yancheng) assets
Other government grants related 158784066.24 28610810.87 - 11755961.50 20071428.63 155567486.98 Related toto assets/income assets/income
Total 393437007.37 31610810.87 16988800.86 20071428.63 387987588.75
1282025 Interim Report of Konka Group Co. Ltd.
41. Other non-current liabilities
Item Ending balance Beginning balance
Contract liabilities over one year 196983826.75 207378781.21
Total 196983826.75 207378781.21
42. Share capital
Increase/decrease (+/-) in the current period
Shares as Shares asdividend
Item Beginning balance New dividend converted Ending balance
issues converted from Others Subtotalfrom
profit capitalreserves
Total shares 2407945408.00 2407945408.00
43. Capital reserves
Item Beginning balance Increased amount in Decreased amount inthe current period the current period Ending balance
Other capital reserves 512840575.73 1508471.59 126029421.25 388319626.07
Total 512840575.73 1508471.59 126029421.25 388319626.07
Remarks: Capital reserves for the current period - other capital reserves increased and decreased due to the
following reasons:
* Changes in accounting method of the associate Wuhan Tianyuan Group Co. Ltd. led to a decrease in other
capital reserves of RMB 126029421.25;
* The deregistration of the associate E3info (Hainan) Technology Co. Ltd. resulted in an increase in other
capital reserves of RMB 1508471.59.
1292025 Interim Report of Konka Group Co. Ltd.
44. Other comprehensive income
Amount incurred in the current period
Less: Amount
Less: Amount recognized as
recognized as other
other comprehensive
Amount before comprehensive income in the Less: Attributable to Attributable to
Item Beginning balance income tax for the income in the previous Income the parent minority Ending balance
current period previous period period and tax company after shareholders after
and transferred to transferred to expense tax tax
profit or loss in retained
the reporting earnings in the
period reporting
period
I. Other comprehensive income that
cannot be reclassified as profits or -6398878.20 -6398878.20
losses
Including: changes in fair value of
other equity instrument investments -6398878.20 -6398878.20
II. Other comprehensive income
reclassified as profits and losses -2641412.12 -3731546.01 -3317264.68 -414281.33 -5958676.80
Including: Other comprehensive
income that can be transferred to
profits or losses under the equity -2192546.02 35170.29 35170.29 -2157375.73
method
Exchange difference on translating
foreign operations -448866.10 -3766716.30 -3352434.97 -414281.33 -3801301.07
Total of other comprehensive
income -9040290.32 -3731546.01 -3317264.68 -414281.33 -12357555.00
1302025 Interim Report of Konka Group Co. Ltd.
45. Special reserve
Item Beginning balance Increased amount in Decreased amount inthe current period the current period Ending balance
Safety production fund 11249678.53 4266750.43 1003875.09 14512553.87
Total 11249678.53 4266750.43 1003875.09 14512553.87
46. Surplus reserves
Increased amount Decreased amount
Item Beginning balance in the current in the current Ending balance
period period
Statutory surplus 1005961774.19 1005961774.19
reserves
Discretionary surplus 238218590.05 238218590.05
reserves
Total 1244180364.24 1244180364.24
47. Retained earnings
Item The current period The previous period
Balance at the end of the previous period -1797506898.08 1474561975.85
Plus: adjustments for retained earnings as at the beginning of the
year
Including: changes in accounting policies
Balance at the beginning of the current period -1797506898.08 1474561975.85
Plus: Net profit attributable to owners of the parent company in the -3295588668.77
current period -383328019.43
Others 139341.25 23519794.84
Less: Appropriation of statutory surplus reserves
Ordinary share dividends payable
Balance at the end of the current period -2180695576.26 -1797506898.08
48. Operating income and operating costs
(1) Operating revenue and cost of sales
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Principal
activity 4918681643.02 4759316001.26 5085252685.02 4880137907.16
Other 328826206.25 223627213.43 327277687.45 235221605.28
Total 5247507849.27 4982943214.69 5412530372.47 5115359512.44
(2) Information on the breakdown of operating revenue and cost of sales
Amount incurred in the current period Amount incurred in the previous period
Category of contracts
Operating revenue Cost of sales Operating revenue Cost of sales
Business type
Including: white goods
business 2095189645.55 1973305089.16 2247070655.48 2096309318.45
Color TVs 2244724045.65 2235973005.98 2115790827.61 2091869699.95
PCB business 263122283.88 237844625.04 231558538.52 201913961.50
Semiconductor and
memory chip business 97383684.29 102190984.23 82962696.19 104195917.13
Other 547088189.90 433629510.28 735147654.67 621070615.41
1312025 Interim Report of Konka Group Co. Ltd.
Amount incurred in the current period Amount incurred in the previous period
Category of contracts
Operating revenue Cost of sales Operating revenue Cost of sales
Total 5247507849.27 4982943214.69 5412530372.47 5115359512.44
Classified by operating
region
Of which: Domestic 3538077644.56 3338376377.57 4046161239.69 3792115677.96
Overseas 1709430204.71 1644566837.12 1366369132.78 1323243834.48
Total 5247507849.27 4982943214.69 5412530372.47 5115359512.44
(3) Information in relation to the trade price apportioned to the residual contract performance obligation
At the end of the reporting period the revenue corresponding to the performance obligations that have been
signed but not yet performed or not yet fully performed was RMB 1216514325.21 of which RMB
1056038262.32 is expected to be recognized as revenue in 2025 RMB 141232885.21 is expected to be
recognized as revenue in 2026 and RMB 19243177.68 is expected to be recognized as revenue by 2027 and later
years.
49. Taxes and surcharges
Item Amount incurred in the current period Amount incurred in the previous period
Stamp duty 14065831.49 20423713.44
Land use tax 9424136.83 10267616.69
Property tax 24311180.40 22000493.47
Urban maintenance and construction 2012107.89 3736313.54
tax
Education surcharge 955454.58 1783117.24
Local education surcharge 636968.01 1124579.62
Water resources fund 393355.44 466801.02
Others 1058794.12 4890300.09
Total 52857828.76 64692935.11
50. Administrative expense
Item Amount incurred in the current period Amount incurred in the previous period
Employee Compensation 133183343.18 154300923.47
Depreciation charges 104104411.98 112987437.91
Intermediary fees 10436533.14 10762242.10
Travel expenses 2127820.45 3069025.63
Water and electricity expenses 6399979.25 6470775.15
Loss on scraping of inventories 949468.49 544223.62
Others 16444914.27 27811392.14
Total 273646470.76 315946020.02
51. Selling expense
Item Amount incurred in the current period Amount incurred in the previous period
Employee Compensation 148789207.61 171203002.74
Advertising expense 42199803.07 58845808.44
Promotional activities 52144952.78 81663424.07
Logistic Fee 26982858.70 36655832.05
Travel expenses 8395457.65 10194979.57
Lease expense 3584938.17 4546683.71
Entertainment fees 4397168.37 5162838.90
1322025 Interim Report of Konka Group Co. Ltd.
Item Amount incurred in the current period Amount incurred in the previous period
Display and exhibition expenses 794856.72 3678606.92
Others 18236171.59 18035380.44
Total 305525414.66 389986556.84
Remarks: Pursuant to the Interpretation of Accounting Standards for Business Enterprises No.18 the Group
reclassified assurance-type warranty expenses previously presented under "Selling Expenses" to "Operating Cost"
with corresponding retrospective adjustments made to the comparative figures in the financial statements.
52. R&D expense
Item Amount incurred in the current period Amount incurred in the previous period
Salary 96735140.30 112601611.50
Depreciation and amortization charge 59670273.81 55043697.25
New product trial production expense 900602.57 13867547.29
Material expense 9793459.90 9254000.43
Commission service fee 134759.46 222156.14
Testing expense 1604963.68 2797313.59
Information use fee 308099.64 369876.67
Others 18803996.32 20421823.94
Total 187951295.68 214578026.81
53. Financial expenses
Item Amount incurred in the current Amount incurred in the previousperiod period
Interest expense 350360105.59 407018728.71
Less: Interest income 72105599.49 116244724.79
Plus: Exchange loss 12128908.22 -25405623.27
Other expenses 20345947.47 15543995.01
Total 310729361.79 280912375.66
54. Other income
Resources Amount incurred in the current Amount incurred in the previousperiod period
Support funds 14558900.00 13782260.00
Rewards and subsidies 8415646.07 22036812.48
Transfer of deferred income 16988800.86 18082830.68
Tax rebates on software 252760.60 1596783.94
Post subsidies 304630.24 110985.80
Subsidies for L/C exports 450000.00 1158714.67
Total 40970737.77 56768387.57
55. Income from changes in the fair value
Sources of income from changes in the fair value Amount incurred in the current Amount incurred in the previousperiod period
Financial assets measured at fair value through
current profit or loss 173409194.85 -179800523.76
Total 173409194.85 -179800523.76
1332025 Interim Report of Konka Group Co. Ltd.
56. Investment income
Item Amount incurred in the current Amount incurred in the previousperiod period
Returns on long-term equity investments calculated
by the equity method -42498270.14 -41296057.12
Return on investment arising from the disposal of
long-term equity investments -211552.65 2450000.00
Conversion of long-term equity investments
accounted for by the equity method to financial 655666680.89
assets
Gains from remeasurement of residual stock rights at
fair value after losing control power 51916.92
Interest income from debt investments during the
holding period 2470451.36 9640886.02
Investment income from financial assets held for
trading during the holding period 420553.86 4240444.62
Income from the derecognition of financial assets at
amortized cost (“-” for loss) -2541005.90 -1970677.82
Investment income from disposal of financial assets
measured at fair value through current profit or loss -73011755.91 11456.91
Others 31971391.61
Total 540347018.43 5047444.22
57. Losses from credit impairment
Item Amount incurred in the current Amount incurred in the previousperiod period
Bad debt loss of notes receivable 24121.03 -16435.60
Bad debt loss of accounts receivable -40844738.44 -25990993.24
Bad debt loss of other accounts receivable -76271800.35 -137072004.34
Total -117092417.76 -163079433.18
58. Losses from asset impairment
Item Amount incurred in the current Amount incurred in the previousperiod period
Inventory depreciation loss and contract performance
cost impairment loss -85468130.96 -81109796.34
Impairment loss of long-term equity investments -245911.63
Impairment loss on fixed assets -10646284.08
Contractual asset impairment loss 64275.10 -10874.90
Total -85403855.86 -92012866.95
59. Gains from disposal of assets
Amount recorded into
Item Amount incurred in the Amount incurred in the non-recurring profitcurrent period the previous period or loss of the current
period
Gains on disposal of held-for-sale disposal
groups
Gains on disposal of non-current assets 31513481.94 590329.38 31513481.94
Including: gains on disposal of non-current
assets not classified as held-for-sale assets 31513481.94 590329.38 31513481.94
Including: gains on disposal of fixed assets 30906667.28 54072.55 30906667.28
1342025 Interim Report of Konka Group Co. Ltd.
Amount recorded into
Item Amount incurred in the Amount incurred in the non-recurring profitcurrent period the previous period or loss of the current
period
Gains on Intangible assets disposal
Gains on disposal of construction in
progress
Gains on disposal of right-of-use assets 606814.66 536256.83 606814.66
Gains from exchange of non-monetary
assets
Gains from disposal of non-current assets in
debt restructuring
Total 31513481.94 590329.38 31513481.94
60. Non-operating revenue
(1) Detains of non-operating revenue
Amount recorded into
Item Amount incurred in the Amount incurred in the non-recurring profitcurrent period the previous period or loss of the current
period
Compensation and penalty income 2742411.30 3092879.89 2742411.30
Government grants irrelevant to the daily
activities of the Company
Non-current assets damage and retirement
gains 268150.12 7433.54 268150.12
Others 6291648.09 12673210.46 6291648.09
Total 9302209.51 15773523.89 9302209.51
(2) Government grants recognized as profit or loss of the reporting period
In the current period the Company had no government grants recognized as profit or loss of the current period.
61. Non-operating expense
Amount recorded into
Item Current amount Previous amount the non-recurring profitor loss of the current
period
Losses on damage and scraping of non-
current assets 1223752.24 2221846.15 1223752.24
Compensation expense 119454.41 294044.54 119454.41
Others 2306994.33 3639914.15 2306994.33
Total 3650200.98 6155804.84 3650200.98
62. Income tax expenses
(1) Income tax expense
Item Amount incurred in the current period Amount incurred in the previousperiod
Income tax expense in the current period 14766007.62 7537422.29
Deferred income tax expense 205603500.30 -58813265.42
Total 220369507.92 -51275843.13
(2) Adjustment process of accounting profits and income tax expenses
Item Amount incurred in the current period
1352025 Interim Report of Konka Group Co. Ltd.
Item Amount incurred in the current period
Total consolidated profit in the current period -276749569.17
Income tax expense calculated at legal/applicable tax rate -69187392.29
Impact of different tax rates applied by subsidiaries 36845548.47
Impact of income tax in the periods before adjustment 8125597.62
Impact of non-taxable income 2651430.00
Impacts of non-deductible costs expenses and losses 1557386.77
Impact of using deductible losses on the deferred tax assets not
recognized previously 3247175.84
Impact of deductible temporary differences or deductible losses for
which no deferred tax assets have been recognized in the current period 238690543.56
Changes in the balance of deferred tax assets/liabilities in previous
period due to adjustment of tax rate
Others -1560782.05
Income tax expense 220369507.92
63. Other comprehensive income
For details please refer to "Note VIII.44 Other comprehensive income".
64. Items of the statement of cash flows
(1) Cash related to operating activities
1) Cash generated from other operating activities
Item Amount incurred in the current Amount incurred in the previousperiod period
Income from government grants 48738644.95 48053764.37
Front money and guarantee deposit 41698070.33 46360237.95
Interest income from bank deposits 12715233.74 42714837.97
Trading funds 84787383.62 30412346.71
Compensation and penalty income 3109325.19 7630486.32
Others 24471226.45 35512873.11
Total 215519884.28 210684546.43
2) Cash used in other operating activities
Item Amount incurred in the current Amount incurred in the previousperiod period
Cash payment fee 253883805.96 402018344.95
Deposit and margin 53249245.94 44313952.61
Payment made on behalf 28616.88 124940.56
Expense for bank handling charges 1726391.23 2373726.27
Others 42373701.96 16687924.10
Total 351261761.97 465518888.49
(2) Cash related to investing activities
1) Cash generated from other investing activities
Item Amount incurred in the currentperiod Amount incurred in the previous period
Recovery of loan at call 10535206.45
Cash received from acquisition of subsidiaries
1362025 Interim Report of Konka Group Co. Ltd.
Item Amount incurred in the currentperiod Amount incurred in the previous period
Others 858150.68 12609773.16
Total 858150.68 23144979.61
2) Cash used in other investing activities
Item Amount incurred in the current Amount incurred in the previousperiod period
Payment of loan at call
Cash paid for disposal of subsidiaries
Others 21122140.00 2127401.00
Total 21122140.00 2127401.00
(3) Cash related to financing activities
1) Cash generated from other financing activities
Item Amount incurred in the current Amount incurred in the previousperiod period
Recovery of margin deposit pledged 1385979814.26 354016478.39
Receiving loan at call 700000.00
Others
Total 1386679814.26 354016478.39
2) Cash used in other financing activities
Item Amount incurred in the current Amount incurred in the previousperiod period
Deposit as margin for pledge 1220117802.84 663728905.41
Cash paid for leases 27571130.91 21561318.50
Retuning loan at call 20800521.46 17268436.34
Financing cost 18690332.38 13578122.88
Others 9741719.08 4101071.57
Total 1296921506.67 720237854.70
1372025 Interim Report of Konka Group Co. Ltd.
3) Changes in liabilities arising from financing activities
Increased amount in the current period Decreased amount in the current period
Item Beginning balance Ending balance
Cash changes Non-cash changes Cash changes Non-cash changes
Current portion of non-
current liabilities 6655534395.19 8644453977.64 457252301.90 6118236474.02 8724499596.91
Short-term borrowings 5741171468.26 5026379210.42 93312540.15 4598614208.67 6262249010.16
Long-term borrowings 5530649801.93 105221326.09 3832536102.98 246093895.79 6115537685.30 3106775649.91
Bonds payable 2295193501.05 408688000.00 2518396801.06 11280888.95 2505565526.35 2705431886.81
Lease Liabilities 146561588.52 29657559.57 3498292.40 54492252.84 118228602.85
Long-term payables 5504548.24 130119.60 1270229.28 13750.95 4350687.61
Total 20374615303.19 5540288536.51 15118487101.00 5318009816.99 14793845689.46 20921535434.25
1382025 Interim Report of Konka Group Co. Ltd.
(4) Notes to the presentation of cash flows on a net basis
No cash flows were presented on a net basis in the current period.
(5) Significant activities and financial effects that do not involve current cash receipts and payments but
affect the financial position of the enterprise or may affect the enterprise's cash flows in the future
Item Amount incurred in the current period
Payment for materials made by endorsement of notes receivable 791153868.45
Acquisition of long-term assets by endorsement of notes receivable 23538270.59
Other payments made by endorsement of notes receivable 71142955.45
65. Supplementary information to the statement of cash flows
(1) Supplementary information to the statement of cash flows
Item Current amount Previous amount
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit -497119077.09 -1280538154.95
Plus: Provision for asset impairment 85403855.86 92012866.95
Credit impairment loss 117092417.76 163079433.18
Depreciation of fixed assets depletion of oil and gas assets and
productive biological assets 220353011.40 229778679.61
Depreciation of right-of-use assets 24890541.80 28010441.12
Amortization of intangible assets 23917196.86 25884982.90
Amortization of long-term prepaid expense 70142033.93 68829106.66
Losses on disposal of fixed assets intangible assets and other long-
lived assets (" " indicates income) -31513481.94 -590329.38
Losses on scrap of fixed assets (" " indicates income) 955602.12 2214412.61
Losses on changes in fair value (" " indicates income) -173409194.85 179800523.76
Finance costs (" " indicates income) 320688430.62 354429278.33
Investment loss (" " indicates income) -540347018.43 -5047444.22
Decrease in deferred tax assets ("-" for increase) 6266494.74 -13013812.53
Increase in deferred income tax liabilities (" " indicates decrease) 203196489.95 -45799452.88
Decrease in inventories (" " indicates increase) 133699360.03 -286354098.48
Decrease in accounts receivable generated from operating activities
(" " indicates increase) -142879274.45 106159668.41
Increase in accounts payable used in operating activities (" "
indicates decrease) -479972018.38 -40111635.54
Others -16988800.86 -18082830.68
Net cash generated from/used in operating activities -675623430.93 -439338365.13
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:
Ending balance of cash 2502399179.47 4378374510.08
Less: beginning balance of cash 2783177476.45 5674784349.55
Plus: ending balance of cash equivalents
Less: beginning balance of cash equivalents
Net increase in cash and cash equivalents -280778296.98 -1296409839.47
1392025 Interim Report of Konka Group Co. Ltd.
(2) Supplier finance arrangements
* Terms and conditions of supplier finance arrangements
The Group entered into agreements with banks and financial institutions whereby qualified suppliers recognized
by the Group may assign their eligible accounts receivable from the Group to these institutions. Upon maturity of
the accounts payable the Group fulfills its unconditional payment obligations.* Items reported in the balance sheet and related information (Unit: RMB'0000)
Reported item Ending balance Beginning balance
Accounts payable 109.13 219.31
Including: accounts received by suppliers 109.13 219.31
Total 109.13 219.31
* Payment due date range
Ending Beginning
Liabilities under the arrangement 360-365 days from the date of 360-365 days from the date ofissue issue
Comparable accounts payable not under the
arrangement - -
* Changes in the current period not involving cash receipts and payments
The above changes in the Company's financial liabilities did not include the impact of business combination and
exchange rate changes.
(3) Net cash paid for the acquisition of subsidiaries in the current period
There was no net cash paid for the acquisition of subsidiaries in the current period
(4) Net cash received from the disposal of subsidiaries in the current period
Item Amount
Cash or cash equivalents received the current period from the
disposal of subsidiaries the current period 4221401.00
Of which:
Kangrong Jiayuan Technology (Zhejiang) Co. Ltd. 4221401.00
Less: cash and cash equivalents held by subsidiaries on the date
control is lost
Of which:
Kangrong Jiayuan Technology (Zhejiang) Co. Ltd.Plus: cash or cash equivalents received in the current period from
the disposal of subsidiaries in previous periods
Net cash received for disposal of subsidiaries 4221401.00
(5) Composition of cash and cash equivalents
Item Ending balance Beginning balance
Cash 2502399179.47 2783177476.45
Including: Cash on hand 35.44 208.19
Bank deposits available for payment at any time 2498989776.00 2779974224.23
Other monetary funds available for payment at any time 3409368.03 3203044.03
Ending balance of cash and cash equivalents 2502399179.47 2783177476.45
(6) Presentation of cash and cash equivalents with restricted use
Item Current amount Previous amount Reasons for classifying the fundsas cash and cash equivalents
1402025 Interim Report of Konka Group Co. Ltd.
Item Current amount Previous amount Reasons for classifying the fundsas cash and cash equivalents
The proceeds can be used at any
Project loan proceeds 21235919.44 22487519.50 time to make payments and suchpayments can only be made for
projects
The proceeds can be used at any
Project pre-sale funds 14945902.26 18266154.30 time to make payments and suchpayments can only be made for
projects
Total 36181821.70 40753673.80 —
(7) Monetary funds not classified as cash and cash equivalents
Item Current amount Previous amount Reasons for not classifying the fundsas cash and cash equivalents
Cash deposit 699851445.35 441866862.11 It is pledged for borrowing or depositfor issuance of banker acceptance
Time deposits 540851836.28 469680000.00 The management intends to hold thedeposits to maturity
Frozen funds 82682461.71 224449207.24 Not readily available for payment
Total 1323385743.34 1135996069.35 —
66. Notes to the items of the statement of changes in owners' equity
There was no "other" amount in the ending amount of the previous period adjusted in the current period.
67. Monetary items in foreign currency
(1) Foreign currency monetary items
Item Ending foreign currency Exchange rate Year-end balancebalance denominated in RMB
Monetary assets
Including: USD 38822318.15 7.1586 277913446.71
EUR 108167.92 8.4024 908870.13
EGP 12892847.56 0.1441 1857410.72
GBP 1.32 9.8300 12.98
HKD 1493112.79 0.9120 1361644.21
CAD 6.96 5.2358 36.44
PLN 3107503.02 1.9826 6161035.37
Accounts receivable
Including: USD 87358556.38 7.1586 625364961.70
EUR 693326.59 8.4024 5825607.34
HKD 995112.70 0.9120 907493.03
AUD 49764.00 4.6817 232980.12
Advances to suppliers
Including: USD 220852.41 7.1586 1580994.06
Other receivables
Including: USD 108529719.36 7.1586 776920849.01
EGP 108000.00 0.1441 15559.04
HKD 1036567.85 0.9120 945298.05
JPY 21400000.00 0.0496 1061311.60
Accounts payable
Including: USD 30646429.85 7.1586 219385532.72
1412025 Interim Report of Konka Group Co. Ltd.
Item Ending foreign currencybalance Exchange rate
Year-end balance
denominated in RMB
EUR 22880.21 8.4024 192248.68
EGP 35620358.59 0.1441 5131654.24
HKD 14719.88 0.9120 13423.79
Other payables
Including: USD 3766920.19 7.1586 26965874.87
EUR 56811.80 8.4024 477355.47
EGP 498014.80 0.1441 71746.60
HKD 370315.69 0.9120 337709.39
(2) Overseas entities
The significant overseas entities include Hongdin Trading Hong Kong Konka Chain Kingdom Memory
Technologies Hongjet Jiali International and Kowin Memory (Hong Kong). The main overseas operating place
is Hong Kong. The Company's recording currency is HKD since the main currency in circulation in Hong Kong is
HKD.IX. R&D expenditures
Item Amount incurred in the Amount incurred in thecurrent period previous period
Salary 96735140.30 112601611.50
Depreciation and amortization charge 59670273.81 55043697.25
New product trial production expense 900602.57 13867547.29
Material expense 9793459.90 9254000.43
Commission service fee 134759.46 222156.14
Testing expense 1604963.68 2797313.59
Information use fee 308099.64 369876.67
Others 18803996.32 20421823.94
Total 187951295.68 214578026.81
Including: Expensed R&D expenditure 187951295.68 214578026.81
Capitalized R&D expenditure
X. Changes in the scope of consolidation
1. Business combination not under common control
There was no business combination not under common control in the current period.
2. Business combination under common control
There was no business combination under common control in the current period.
3. Disposal of subsidiaries
Unit: RMB'0000
Difference Measures for
between the determination Amount of other
disposal price comprehensive
and the share in Book value of Fair value of
of fair value of
Gains or losses residual equity income relating to
Disposal Disposalpercentage at Disposal Time of Basis for net assets of the
Proportion of residual equity residual equity the investment in
Name of price at the method at determining subsidiary in remaining in consolidated in consolidated
arising from the in consolidated the equity of
subsidiary time of the time of the time of control the time of consolidated equity on the financial financial
re-measurement financial original
control loss control loss control loss loss control loss financial date of loss of statements on statements on
of residual statements on
(%) control the date of loss the date of loss equity at fair the date on
subsidiaries
statements value which the transferred in the
corresponding to of control of control control right is profit and loss on
the investment lost and major investment or
disposed assumptions retained earnings
All rights and
obligations
Kangrong 422.14 41.00 Transfer 2025/5/9 related to theJiayuan target equity 21.29 10 97.77 102.96 5.19 Evaluated price
have been
transferred
1422025 Interim Report of Konka Group Co. Ltd.
4. Changes in the scope of consolidation due to other reasons
No subsidiaries were established or deregistered in the current period
1432025 Interim Report of Konka Group Co. Ltd.
X. Equity in other entities
1. Equity in subsidiaries
(1) Structure of the enterprise group
Shareholding percentage
No. Name of subsidiary Main place of business Place of registration Business nature (%) Acquisition method
Direct Indirect
Enterprise management consulting
1 Konka Ventures Shenzhen Guangdong Shenzhen Guangdong incubation management housing 51 Establishment or
leasing etc. investment
2 Yantai Konka Yantai Shandong Yantai Shandong Other professional consultation and Establishment orinvestigation 51 investment
3 Konka Enterprise Service Guiyang Guizhou Guiyang Guizhou Enterprise management consulting 51 Establishment orinvestment
4 Yibin Konka Incubator Yibin Sichuan Yibin Sichuan 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 Material Shenzhen Guangdong Shenzhen Guangdong Other science and technology 100 Establishment orpromotion services investment
8 Konka Unifortune Shenzhen Guangdong Shenzhen Guangdong Trade and services 51 Establishment orinvestment
9 Jiali International Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
10 Dongguan Konka Dongguan Guangdong Dongguan Guangdong Manufacturing 75 25 Establishment orinvestment
11 Suining Konka Smart Suining Sichuan Suining Sichuan Wholesale 100 Establishment orinvestment
12 Konka Europe Germany Frankfurt Germany Frankfurt International trade 100 Establishment orinvestment
13 Telecommunication Shenzhen Guangdong Shenzhen Guangdong Manufacturing 75 25 Establishment orTechnology investment
14 Konka Mobility Hong Kong China Hong Kong China Commercial 100 Establishment orinvestment
1442025 Interim Report of Konka Group Co. Ltd.
Shareholding percentage
No. Name of subsidiary Main place of business Place of registration Business nature (%) Acquisition method
Direct Indirect
15 Development of science and Establishment ortechnology industry Shenzhen Guangdong Shenzhen Guangdong Commercial 100 investment
16 Sichuan Konka Yibin Sichuan Yibin Sichuan Manufacturing 100 Establishment orinvestment
17 Yibin Konka Intelligent Yibin Sichuan Yibin Sichuan Manufacturing 100 Establishment orinvestment
18 Anhui Tongchuang Chuzhou Anhui Chuzhou Anhui Manufacturing 100 Establishment orinvestment
19 Anhui Electrical Appliance Chuzhou Anhui Chuzhou Anhui Manufacturing 51 Establishment orinvestment
Business combinations
20 Frestec Refrigeration Xinxiang Henan Xinxiang Henan Manufacturing 51 not under common
control
21 Frestec Smart Home Xinxiang Henan Xinxiang Henan Manufacturing 51 Establishment orinvestment
Business combinations
22 Frestec Electrical Appliances Xinxiang Henan Xinxiang Henan Manufacturing 51 not under common
control
23 Frestec Household
Business combinations
Appliances Xinxiang Henan Xinxiang Henan Manufacturing 51 not under commoncontrol
24 Jiangsu Konka Smart Changzhou Jiangsu Changzhou Jiangsu Manufacturing 51 Establishment orinvestment
25 Kangjiatong Yibin Sichuan Yibin Sichuan Trade and services 100 Establishment orinvestment
26 Pengrun Technology Shenzhen Guangdong Shenzhen Guangdong Trade and services 51 Establishment orinvestment
27 Jiaxin Technology Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
28 Beijing Konka Electronic Beijing Beijing Sale of home appliance 100 Establishment orinvestment
29 Tianjin Konka Tianjin Pilot Free Trade Tianjin Pilot Free TradeZone Zone Service Industry 100
Establishment or
investment
1452025 Interim Report of Konka Group Co. Ltd.
Shareholding percentage
No. Name of subsidiary Main place of business Place of registration Business nature (%) Acquisition method
Direct Indirect
30 Konka Circuit Shenzhen Guangdong Shenzhen Guangdong Manufacturing 100 Establishment orinvestment
31 Boluo Precision Boluo Guangdong Boluo Guangdong Manufacturing 100 Establishment orinvestment
32 Hong Kong Konka Hong Kong China Hong Kong China International trade 100 Establishment orinvestment
33 Hongdin Investment Hong Kong China Hong Kong China Investment holding 100 Establishment orinvestment
34 Chain Kingdom MemoryTechnologies Hong Kong China Hong Kong China International trade 51
Establishment or
investment
35 Chain KingdomSemiconductor (Shaoxing) Zhejiang Shaoxing Zhejiang Shaoxing Trade and services 51
Establishment or
investment
36 Hongjet Hong Kong China Hong Kong China Trade and services 51 Establishment orinvestment
37 Hongdin Trading Hong Kong China Hong Kong China International trade 100 Establishment orinvestment
38 Kanghao Technology Egypt Cairo Egypt Cairo International trade 67 Establishment orinvestment
39 Konka North America America California America California International trade 100 Establishment orinvestment
40 Konka Investment Shenzhen Guangdong Shenzhen Guangdong Capital market services 100 Establishment orinvestment
41 Yibin Konka Technology Yibin Sichuan Yibin Sichuan Industrial park development and 100 Establishment orPark operation management investment
42 Konka Capital Shenzhen Guangdong Shenzhen Guangdong Capital market services 100 Establishment orinvestment
43 Konka Suiyong Shenzhen Guangdong Shenzhen Guangdong Commercial services 51 Establishment orinvestment
44 Shengxing Industrial Shenzhen Guangdong Shenzhen Guangdong Commercial services 51 Establishment orinvestment
45 Zhitong Technology Shenzhen Guangdong Shenzhen Guangdong Software and information technologyservices 51
Establishment or
investment
46 Electronics Technology Shenzhen Guangdong Shenzhen Guangdong Manufacturing 100 Establishment or
1462025 Interim Report of Konka Group Co. Ltd.
Shareholding percentage
No. Name of subsidiary Main place of business Place of registration Business nature (%) Acquisition method
Direct Indirect
investment
47 Shenzhen Kangcheng Shenzhen Guangdong Shenzhen Guangdong Software and information technology 100 Establishment orservices investment
48 Xiaojia Technology Shenzhen Guangdong Shenzhen Guangdong Retail trade 100 Establishment orinvestment
49 Haimen Konka Nantong Jiangsu Nantong Jiangsu Trade and services 100 Establishment orinvestment
50 Chengdu Konka Electronics Chengdu Sichuan Chengdu Sichuan Manufacturing 100 Establishment orinvestment
Business combinations
51 Xingda Hongye Zhongshan Guangdong Zhongshan Guangdong Manufacturing 51 not under common
control
52 Liaoyang Kangshun Liaoyang Liaoning Liaoyang Liaoning Wholesale 100 Establishment orinvestment
53 Liaoyang Kangshun Liaoyang Liaoning Liaoyang Liaoning Comprehensive utilization of 100 Establishment orRenewable renewable resources investment
54 Nanjing Konka Nanjing Jiangsu Nanjing Jiangsu Wholesale 100 Establishment orinvestment
55 Shanghai Konka Shanghai Shanghai Real estate 100 Establishment orinvestment
56 Yantai Kangjin Yantai Shandong Yantai Shandong Real estate 62.8 Establishment orinvestment
Business combinations
57 Jiangxi Konka Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51 not under common
control
Business combinations
58 Xinfeng Microcrystalline Nanchang Jiangxi Nanchang Jiangxi Manufacturing and processing 51 not under common
control
59 Shenzhen Nianhua Shenzhen Guangdong Shenzhen Guangdong Commercial services 100 Establishment orinvestment
60 Shenzhen KonkaSemiconductor Shenzhen Guangdong Shenzhen Guangdong Semiconductors 100
Establishment or
investment
61 Chongqing Konka Chongqing Chongqing Software and information technologyservices 100
Establishment or
investment
1472025 Interim Report of Konka Group Co. Ltd.
Shareholding percentage
No. Name of subsidiary Main place of business Place of registration Business nature (%) Acquisition method
Direct Indirect
62 Ji'an Konka Ji'an Jiangxi Ji'an Jiangxi Commercial services 51 Establishment orinvestment
63 Suining Konka IndustrialPark Suining Sichuan Suining Sichuan
Industrial park development and Establishment or
operation management 100 investment
64 Suining ElectronicTechnological Innovation Suining Sichuan Suining Sichuan Commercial services 100
Establishment or
investment
65 Shenzhen ChuangzhiElectrical Appliances Shenzhen Guangdong Shenzhen Guangdong Wholesale 100
Establishment or
investment
66 Chongqing OptoelectronicTechnology Chongqing Chongqing Research & experiment development 70 5
Establishment or
investment
Computer telecommunications and
67 Kowin Memory (Shenzhen) Shenzhen Guangdong Shenzhen Guangdong other electronic equipment 100 Establishment or
manufacturing investment
Konka Xinyun Computer telecommunications and68 Semiconductor Yancheng Jiangsu Yancheng Jiangsu other electronic equipment 100
Establishment or
manufacturing investment
69 Nanjing Konka Smart Nanjing Jiangsu Nanjing Jiangsu Manufacturing 51 Establishment orinvestment
70 Ningbo Kanghanrui ElectricAppliances Ningbo Zhejiang Ningbo Zhejiang
Electrical machinery and equipment
manufacturing 60
Establishment or
investment
71 Suining Jiarun Property Suining Sichuan Suining Sichuan Real estate 100 Establishment orinvestment
72 Yibin Kangrun Yibin Sichuan Yibin Sichuan Ecological protection and Establishment orenvironmental governance services 67 investment
73 Hainan Konka Technology Haikou Hainan Haikou Hainan Commercial services 100 Establishment orinvestment
Jiangxi High Transparent Business combinations74 Substrate Jiujiang Jiangxi Jiujiang Jiangxi Manufacturing and processing 51 not under commoncontrol
Computer telecommunications and
75 Nantong Hongdin Nantong Jiangsu Nantong Jiangsu other electronic equipment 100 Establishment or
manufacturing investment
76 Chuzhou Konka Chuzhou Anhui Chuzhou Anhui Manufacturing 94.9 Establishment orinvestment
1482025 Interim Report of Konka Group Co. Ltd.
Shareholding percentage
No. Name of subsidiary Main place of business Place of registration Business nature (%) Acquisition method
Direct Indirect
77 Konka Flexible Electronics Suining Sichuan Suining Sichuan Manufacturing 97.5 Establishment orinvestment
78 Konka Hongye Electronics Suining Sichuan Suining Sichuan Manufacturing 95.05 Establishment orinvestment
79 Kowin Memory (Hong Kong) Hong Kong China Hong Kong China Wholesale of computers software and 100 Establishment orauxiliary equipment investment
80 Konka Cross-border (Hebei) Handan Hebei Handan Hebei Wholesale 100 Establishment orinvestment
81 Konka Central China Changsha Hunan Changsha Hunan Commercial services 100 Establishment orinvestment
82 Yibin Kangrun Medical Yibin Sichuan Yibin Sichuan Ecological protection and Establishment orenvironmental governance services 63.65 investment
83 Shanxi Konka Intelligent Xi'an Shanxi Xi'an Shanxi Manufacture of household cleaning Establishment orand sanitary electrical appliances 51 investment
84 Chongqing Xinyuan Science and technology promotion and Establishment orSemiconductor Chongqing Chongqing application services 75 investment
85 Anlu Konka Anlu Hubei Anlu Hubei Software and information technology Establishment orservices 100 investment
86 Kanghong Dongsheng Shenzhen Guangdong Shenzhen Guangdong Commercial services 95.09 Establishment orinvestment
Guizhou Konka New Material Qiannan Buyi and Miao Qiannan Buyi and Miao87 Technology Autonomous Prefecture Autonomous Prefecture Manufacturing and processing 51
Establishment or
Guizhou Guizhou investment
88 Shanxi Smart Home
Computer telecommunications and
Appliance Jincheng Shanxi Jincheng Shanxi other electronic equipment 100
Establishment or
manufacturing investment
Guizhou Kanggui Material Qiannan Buyi and Miao Qiannan Buyi and Miao89 Establishment orTechnology Autonomous Prefecture Autonomous Prefecture Manufacturing and processing 70Guizhou Guizhou investment
90 Nantong Kanghai Nantong Jiangsu Nantong Jiangsu Real estate 51 Establishment orinvestment
91 Chongqing Kangyiyun Chongqing Chongqing Real estate 80 Establishment orinvestment
1492025 Interim Report of Konka Group Co. Ltd.
Shareholding percentage
No. Name of subsidiary Main place of business Place of registration Business nature (%) Acquisition method
Direct Indirect
92 Jiangxi Konka High-tech Park Shangrao Jiangxi Shangrao Jiangxi Commercial services 100 Establishment orinvestment
93 Shangrao Konka ElectronicTechnology Innovation Shangrao Jiangxi Shangrao Jiangxi Research & experiment development 100
Establishment or
investment
94 Zhejiang Konka Electronic Zhejiang Shaoxing Zhejiang Shaoxing Research & experiment development 100 Establishment orinvestment
95 Zhejiang Konka TechnologyIndustry Zhejiang Shaoxing Zhejiang Shaoxing Commercial services 51 49
Establishment or
investment
96 Xi'an Konka Intelligent Xi'an Shanxi Xi'an Shanxi Wholesale 51 Establishment orinvestment
Computer telecommunications and
97 Xi'an Konka Network Xi'an Shanxi Xi'an Shanxi other electronic equipment 100 Establishment or
manufacturing investment
98 Xi'an Kanghong Technology Establishment orIndustry Xi'an Shanxi Xi'an Shanxi Commercial services 40 60 investment
99 Xi'an Konka IntelligentTechnology Xi'an Shanxi Xi'an Shanxi Retail trade 100
Establishment or
investment
100 Songyang Industry Operation Lishui Zhejiang Lishui Zhejiang Software and information technology Establishment orservices 51 investment
Computer telecommunications and
101 Kangyan Technology Shenzhen Guangdong Shenzhen Guangdong other electronic equipment 100 Establishment or
manufacturing investment
102 Songyang Konka Intelligent Lishui Zhejiang Lishui Zhejiang Wholesale 100 Establishment orinvestment
103 Konka North China Tianjin Tianjin Electrical machinery and equipment Establishment ormanufacturing 100 investment
104 Digital Technology Shenzhen Guangdong Shenzhen Guangdong Software and information technology 100 Establishment orservices investment
(2) Significant non-wholly owned subsidiaries
Dividends declared to be
Name Shareholding of minority Profit or loss attributable to minority distributed to minority Ending balance of minorityshareholders shareholders in the current period shareholders in the shareholders' equities
current period
1502025 Interim Report of Konka Group Co. Ltd.
Dividends declared to be
Name Shareholding of minority Profit or loss attributable to minority distributed to minority Ending balance of minorityshareholders shareholders in the current period shareholders in the shareholders' equities
current period
Shanxi Konka Intelligent 49.00% -7132640.96 175047533.11
(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
Shanxi Konka Intelligent 612413898.71 554792216.64 1167206115.35 525642424.43 284046927.15 809689351.58
Beginning balance
Name of subsidiary
Current assets Non-current assets Total assets Current liabilities Non-currentliabilities Total liabilities
Shanxi Konka Intelligent 523431034.77 560221880.91 1083652915.68 423606123.36 288250518.71 711856642.07
Amount incurred in the current period
Name of subsidiary
Operating revenue Net profit Total comprehensive Cash flows from operatingincome activities
Shanxi Konka Intelligent 106057798.34 -14556410.13 -14556410.13 -4779480.52
Amount incurred in the previous period
Name of subsidiary
Operating revenue Net profit Total comprehensive income Cash flows from operatingactivities
Shanxi Konka Intelligent 120795509.29 -19911527.33 -19911527.33 17674200.55
1512025 Interim Report of Konka Group Co. Ltd.
3. Equity in associates
(1) Important associates
Shareholding percentage Accounting processing method
Name of associates Main place of business Place ofregistration Business nature
(%) for investment in joint ventures
Direct Indirect or associated enterprises
Oriental Jiakang No. 1 (Zhuhai) Private Equity Investment
Investment Fund (Limited Partnership) Zhuhai Zhuhai management 49.95 Equity method
Professional
Shenzhen Jielunte Technology Co. Ltd. Shenzhen Shenzhen machinery 42.79 Equity method
manufacturing
(2) Key financial information of significant associates
Ending balance/amount incurred in the current period Beginning balance/amount incurred in the previous period
Item Oriental Jiakang No. 1 (Zhuhai)
Private Equity Investment Fund Shenzhen Jielunte
Oriental Jiakang No. 1 (Zhuhai) Shenzhen Jielunte Technology
(Limited Partnership) Technology Co. Ltd.Private Equity Investment Fund
(Limited Partnership) Co. Ltd.Current assets 679676868.16 255200941.59 679918421.73 299214528.27
Including: cash and cash equivalents 8778623.32 23230581.69 9020859.89 16394140.52
Non-current assets 382786204.39 385578306.45
Total assets 679676868.16 637987145.98 679918421.73 684792834.72
Current liabilities 10026785.45 287338612.82 10026785.45 310050065.52
Non-current liabilities 160031560.06 172196132.11
Total liabilities 10026785.45 447370172.88 10026785.45 482246197.63
Total net assets 669650082.71 190616973.10 669891636.28 202546637.09
Including: minority equity 6231022.63 6414476.36
Equities attributable to shareholders of the parent
company 669650082.71 184385950.47 669891636.28 196132160.73
Share of net assets calculated based on the shareholding 334490216.31 78898748.21 334610872.32 83924951.58
Adjustments
- Goodwill
- Unrealized profit of internal transactions
- Others
1522025 Interim Report of Konka Group Co. Ltd.
Ending balance/amount incurred in the current period Beginning balance/amount incurred in the previous period
Item Oriental Jiakang No. 1 (Zhuhai)
Private Equity Investment Fund Shenzhen Jielunte
Oriental Jiakang No. 1 (Zhuhai)
Private Equity Investment Fund Shenzhen Jielunte Technology
(Limited Partnership) Technology Co. Ltd. (Limited Partnership) Co. Ltd.Book value of equity investments in associated
enterprises 334490216.31 78898748.21 334610872.32 89059544.64
Fair value of equity investments in associates with
publicly quoted prices
Operating revenue 173767758.81 165625501.64
Finance costs -41957.20 4931999.28 -72566.70 1873337.25
Income tax expense 4045925.04 4233127.86
Net profit -233242.80 -11900755.32 1815352.24 -18219902.67
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income -233242.80 -11900755.32 1815352.24 -18219902.67
Dividend received from joint venture in the current year
1532025 Interim Report of Konka Group Co. Ltd.
(3) Summarized financial information of insignificant associates
Item Ending balance/amount incurred in Beginning balance/amountthe current period incurred in the previous period
Associates
Total book value of investment 3713808128.79 4304690436.53
The total of following items according to the
shareholding proportions
- Net profit -33813434.11 -31243007.66
Other comprehensive income 35170.29 -83919.23
Total comprehensive income -33778263.82 -31326926.89
XII. Government grants
1. Liability items involving government grants
Amount recognized
Account title Beginning balance Subsidies increased as non-operating
Amount transferred
in the current period revenue in the to other incomes in
current period the current period
Deferred income 393437007.37 31610810.87 16988800.86
(Continued)
Account title Other changes in thecurrent period Ending balance Related to assets/ income
Deferred income 20071428.63 387987588.75 Related to assets/ income
2. Government grants recognized as current profit or loss
Account title Amount incurred in the current period Amount incurred in the previousperiod
Other income 40970737.77 56768387.57
XIII. Risks related to financial instruments
The Group's main financial instruments include borrowings accounts receivable accounts payable trading
financial assets and liabilities etc. Please refer to Note VII 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 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 engaging in the risk management is to achieve the proper balance between the risks and
benefits minimise the negative impact of these risks on the Company's operating results and maximise the profits
of shareholders and other equity investors. Based on the risk management goal the basic strategy of the
Company's risk management is determining and analyzing the various risks faced by the Company 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 Jiali 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 June 30 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.
1542025 Interim Report of Konka Group Co. Ltd.
Item Ending amount Beginning amount
Monetary assets 38822318.15 47765558.32
Accounts receivable 87358556.38 86994147.59
Other receivables 108529719.36 108431901.40
Other payables 3766920.19 3708173.01
Accounts payable 30646429.85 5367446.58
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 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 June 30 2025 the balance of such short-
term borrowings was RMB 6262249010.16.
(2) Credit risk
As of June 30 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 group 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 Note VII.4.Accounts receivable and Note VII.7. Other receivables.
(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 in the method of ensuring that there is sufficient liquidity to fulfil debt obligations
without causing unacceptable loss or damage to the 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 line 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:
1552025 Interim Report of Konka Group Co. Ltd.
Amount as of June 30 2025:
Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets
Monetary assets 3825784922.81 3825784922.81
Trading financial assets 1270907253.85 1270907253.85
Notes receivable 70665804.66 70665804.66
Accounts receivable 1384377310.43 1384377310.43
Other receivables 958976091.29 958976091.29
Other current assets 2274758265.56 2274758265.56
Financial liabilities
Short-term borrowings 6262249010.16 6262249010.16
Notes payable 1100044296.01 1100044296.01
Accounts payable 2614629890.34 2614629890.34
Other payables 1500748130.42 1500748130.42
Employee benefits payable 178142522.24 178142522.24
Current portion of non-current
liabilities 8724499596.91 8724499596.91
Long-term borrowings 403846337.22 611751708.43 2091177604.26 3106775649.91
Bonds payable 2296350733.77 409081153.04 2705431886.81
Long-term payables 2030296.89 2320390.72 4350687.61
1562025 Interim Report of Konka Group Co. Ltd.
2. Sensitivity analysis
The Group adopts sensitivity analysis technology to analyze the possible impact of reasonable and possible
changes of risk variables on current profits/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 profits/losses and equity after tax is as follows:
1H25 1H24
Item Exchange ratefluctuations Impact on net profit Impact on Impact onshareholders' equity Impact on net profit shareholders' equity
Appreciation
USD of 1% against 11847729.74 7429981.30 13258840.79 8898925.74
RMB
Depreciation of
USD 1% against -11847729.74 -7429981.30 -13258840.79 -8898925.74
RMB
(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 profits/losses and equity after tax is as follows:
1H25 1H24
Item Interest ratefluctuations Impact on net profit Impact onshareholders' equity Impact on net profit
Impact on
shareholders' equity
Borrowings
at floating Up 0.5% -23723112.64 -23151242.01 -24626858.36 -23932778.41
interest rates
Borrowings
at floating Down 0.5% 23723112.64 23151242.01 24626858.36 23932778.41
interest rates
XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Ending 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 1270907253.85 1270907253.85
1. Financial assets measured 1270907253.85 1270907253.85
at fair value through current
1572025 Interim Report of Konka Group Co. Ltd.
Ending fair value
Item Level-1 fair value Level-2 fair value Level-3 fair value
measurement measurement measurement Total
profit or loss
(II) Accounts receivable
financing 115550888.61 115550888.61
(III) Other debt investments
(IV) Other equity instrument
investments 16114932.00 16114932.00
(V) Investment properties
(VI) Other non-current
financial assets 1792688478.25 1792688478.25
Total assets continuously
measured at fair value 1270907253.85 115550888.61 1808803410.25 3195261552.71
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 and liabilities available on
the measurement date.
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 inputs are directly or indirectly observable inputs of relevant assets or liabilities other than Level 1 inputs.
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 and liabilities.
5. For items continuously measured at fair value if there is a conversion between levels in the
current period 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
period.
6. Changes in valuation techniques in the current period 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
period.
1582025 Interim Report of Konka Group Co. Ltd.
XV. Related parties and related-party transactions
1. Parent company of the Company
Shareholding Voting right
Name of the parent company Place of Registered
percentage of percentage of the
registration Business nature capital the parent parent companycompany in the in the Company
Company (%) (%)
Overseas Chinese Town Shenzhen Tourism real estate RMB12Holdings Company electronics industry billion 29.999997 29.999997
The ultimate controller of the Company is State-owned Assets Supervisor Commission of the State Council.
2. Subsidiaries of the Company
Please refer to Note XI.1.(1) Structure of the enterprise group for the information of subsidiaries of the Company.
3. Associates of the Company
For details of the Company's important associates please refer to Note XI.2.(1) Important associates.Information on other associated enterprises having connected transactions with the Company in the current period
or forming balance due to connected transactions made in previous period:
Name of associates Relationship with the Company
Anhui Kaikai Shijie E-commerce Co. Ltd. Associates
Chuzhou Kangxin Health Industry Development Co. Ltd. Associates
Dongguan Kangjia New Materials Technology Co. Ltd.. Associates
Dongguan Konka Smart Electronic Technology Co. Ltd. Associates
Dongguan Guankang Yuhong Investment Co. Ltd. Associates
Kangkong Venture Capital (Shenzhen) Co. Ltd. Associates
Panxu Intelligence Co. Ltd. Associates
Puchuang Jiakang Technology Co Ltd. Associates
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. Associates
Shenzhen Aimijiakang Technology Co. Ltd. Associates
Shenzhen Jielunte Technology Co. Ltd. Associates
Shenzhen Kanghongxing Intelligent Technology Co. Ltd. Associates
Shenzhen KONKA E-display Co. Ltd. Associates
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology Co.Ltd. Associates
Shenzhen Yaode Technology Co. Ltd. Associates
Sichuan Chengrui Real Estate Co. Ltd. Associates
Sichuan Hongxinchen Real Estate Development Co. Ltd. Associates
Yantai Kangyue Investment Co. Ltd. Associates
Yantai Kangyun Industrial Development Co. Ltd. Associates
Econ Technology Associates
Zhejiang Kangying Semiconductor Technology Co. Ltd. (formerly:
Shenzhen Kangying Semiconductor Technology) Associates
Chongqing Lanlv Moma Real Estate Development Co. Ltd. Associates
Anhui Kangta Supply Chain Management Co. Ltd. Associates
Orient Excellent (Zhuhai) Asset Management Co. Ltd. Associates
Feidi Technology (Shenzhen) Co. Ltd. Associates
Guangdong Kangyuan Semiconductor Co. Ltd. Associates
Hefei KONSEMI Storage Technology Co. Ltd. Associates
1592025 Interim Report of Konka Group Co. Ltd.
Name of associates Relationship with the Company
Kangkai Technology Service (Chengdu) Co. Ltd. Associates
Kangrong Jiayuan Technology (Zhejiang) Co. Ltd. Associates
Nantong Kangjian Technology Industrial Park Operations and Management
Co. Ltd. Associates
Shenzhen Kangpeng Digital Technology Co. Ltd. Associates
Shenzhen Morsemi Semiconductor Technology Co. Ltd. Associates
Shenzhen Kangxi Technology Innovation Development Co. Ltd. Associates
Shenzhen RF-Llink Technology Co. Ltd. Associates
Shenzhen Zhongkang Beidou Technology Co. Ltd. Associates
E3info (Hainan) Technology Co. Ltd. Associates
Chongqing Kangjian Photoelectric Technology Co. Ltd. Associates
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited
Partnership) Associates
Yancheng Kangyan Information Industry Investment Partnership (Limited
Partnership) Associates
Yibin Kanghui Electronic Information Industry Equity Investment
Partnership (Limited Partnership) Associates
Konka Huanjia Environmental Technology Co. Ltd. Associates
Kangshengjia Smart Energy (Zhejiang) Co. Ltd. Associates
Chongqing Qingjia Electronics Co. Ltd. Associates
4. Other related parties
Names of other related parties Relationship with the Company
HOHO ELECTRICAL & FURNITURE CO. LIMITED Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Beijing Xuri Shengxing Technology Co. Ltd. Minority shareholder of subsidiary
Chuzhou Hanshang Electric Appliance Co. Ltd. Minority shareholder of subsidiary
Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Central SOEs Industrial Investment Fund for Poverty-stricken Area
(Jiangxi) Industrial Investment Fund Partnership (L.P.) Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment Co. Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
Guizhou Jiading Mining Management Investment Co. Ltd. Minority shareholder of subsidiary
Zhejiang Donghong Asset Management Co. Ltd. Minority shareholder of subsidiary
Jiangsu Korea Electric Group Co. Ltd. Companies controlled by minority shareholders ofsubsidiaries
Jiangxi Meiji Enterprise Co. Ltd. Companies controlled by minority shareholders ofsubsidiaries
Dai Rongxing Close family member of minority shareholders
AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise
BOHUA UHD Joint stock company
Chongqing Kangyiqing Technology Co. Ltd. Companies invested by subsidiaries
5. Related-party transactions
(1) Related-party transaction on purchase and sales of goods rendering and receipt of services
1) Purchasing goods/receiving services
1602025 Interim Report of Konka Group Co. Ltd.
Related party Content of related- Amount incurred in Amount incurred inparty transactions the current period the previous period
Chuzhou Hanshang Electric Appliance Co. Ltd. Purchase of goods andservices 42258702.76 114880089.88
OCT Enterprises Co. Ltd. and its subsidiaries and Purchase of goods and
associates services 12268638.11 26734696.17
Shenzhen KONKA E-display Co. Ltd. and its
subsidiaries Purchase of goods 6969990.68 4407128.66
Shenzhen Jielunte Technology Co. Ltd. and its
subsidiaries and associates Purchase of goods 6745228.28 20726583.10
Korea Electric Group Co. Ltd. and its subsidiaries Purchase of goods 8689818.74 12003676.60
Dongguan Kangjia New Materials Technology Co.Ltd. (formerly known as Dongguan Kangjia Purchase of goods andservices 789129.04 3423338.73Packaging Materials Co. Ltd.)
Dongguan Konka Smart Electronic Technology Co.Ltd. Purchase of goods 415774.72 37713014.15
Puchuang Jiakang Technology Co Ltd. Purchase of goods 37713014.15
HOHOELECTRICAL&FURNITURECO.LIMITED Purchase of goods 26341.27
Subtotal of other related parties Purchase of goods andservices 1698466.84 23017795.17
(2) Sales of goods and rendering of services
Related party Content of related-party Amount incurred in Amount incurred intransactions the current period the previous period
Sales of goods and
Chuzhou Hanshang Electric Appliance Co. Ltd. provision of labour 188343769.31 182689651.25
service
Korea Electric Group Co. Ltd. and its Sales of goods and
subsidiaries provision of labour 36632643.64 34500419.06service
OCT Enterprises Co. Ltd. and its subsidiaries Sales of goods and
and associates provision of labour 21189371.31 37055797.37service
Shenzhen KONKA E-display Co. Ltd. and its Sales of goods and
subsidiaries provision of labour 10189054.91 32568363.60service
Zhejiang Kangying Semiconductor Technology Sales of goods and
Co. Ltd. and its subsidiaries provision of labour 9699069.13 2427251.90service
Dongguan Konka Smart Electronic Technology Sales of goods and
Co. Ltd. provision of labour 2379882.99 3647313.53service
Shenzhen Jielunte Technology Co. Ltd. and its Sales of goods and
subsidiaries and associates provision of labour 1678163.41 10781688.86service
Nantong Kangjian Technology Industrial Park Sales of goods and
Operations and Management Co. Ltd. provision of labour 566037.74service
Sales of goods and
Hefei KONSEMI Storage Technology Co. Ltd. provision of labour 59736.00 19420.70
service
E3info (Hainan) Technology Co. Ltd. and its Sales of goods and
subsidiaries provision of labour 1714.00service
Shenzhen Aimijiakang Technology Co. Ltd.(formerly known as Sichuan Aimijiakang Sales of goods 633048.19
Technology Co. Ltd.)
1612025 Interim Report of Konka Group Co. Ltd.
Related party Content of related-party Amount incurred in Amount incurred intransactions the current period the previous period
Sales of goods and
Subtotal of other related parties provision of labour 7125673.74 5085298.73
service
(3) Related-party leases
1) Lease situation
Lessee Type of leased assets Lease income recognized in Lease income recognizedthe current period in the previous period
OCT Enterprises Co. Ltd. and its Commercial
subsidiaries and associates residences and office 7465175.99 7880827.48buildings
Shenzhen KONKA E-display Co. Ltd. Commercial
and its subsidiaries residences and office 1853770.60 264102.06buildings
Commercial
Other related parties residences and office 4906003.52 13857462.72
buildings
Total 14224950.11 22002392.26
2) Lease situation
Lessor Type of leased
Lease expense
recognized in the Lease expense recognizedassets current period in the previous period
Overseas Chinese Town Holdings Company and Commercial
its subsidiaries residences and 15249291.43 16202959.98office buildings
Dongguan Guankang Yuhong Investment Co.Ltd. Industrial plant 3182580.32 6841431.94
Total 18431871.75 23044391.92
(4) Related-party guarantees
1) The Company was guarantor
Contracted Actual Whether
Guaranteed party guarantee guarantee Currency Start date of Expiry date of theamount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Boluo Precision 4500.00 CNY 2023/8/25 2026/8/25 No
Boluo Precision 1800.00 1800.00 CNY 2024/12/19 2025/12/18 No
Boluo 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
Konka Circuit 5000.00 900.00 CNY 2023/12/22 2024/12/22 No
Anhui Tongchuang 10000.00 4900.00 CNY 2025/1/1 2025/12/31 No
Anhui Tongchuang 5000.00 4980.00 CNY 2024/6/20 2025/5/29 No
Anhui Tongchuang 1000.00 1000.00 CNY 2024/8/14 2025/8/13 No
Anhui Tongchuang 3000.00 3000.00 CNY 2024/7/12 2025/7/11 No
Anhui Tongchuang 2000.00 2000.00 CNY 2025/2/25 2026/2/24 No
Anhui Tongchuang 5000.00 980.00 CNY 2025/2/24 2026/2/23 No
Anhui Tongchuang 4000.00 3500.00 CNY 2025/4/21 2026/4/21 No
Konka Xinyun
Semiconductor 12100.00 8745.13 CNY 2024/11/26 2025/8/1 No
Konka Xinyun 8277.66 2568.75 CNY 2021/7/12 2022/7/11 No
1622025 Interim Report of Konka Group Co. Ltd.
Contracted Actual Whether
Guaranteed party guarantee guarantee Currency Start date of Expiry date of theamount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Semiconductor
Chongqing Konka 38000.00 12535.63 CNY 2022/12/13 2037/12/13 No
Electronics Technology 50000.00 50000.00 CNY 2024/12/3 2025/7/25 No
Dongguan Konka 80000.00 32924.76 CNY 2021/6/23 2031/5/7 No
Sichuan Konka 4000.00 3400.00 CNY 2023/5/23 2026/4/26 No
Yibin Konka Intelligent 980.00 980.00 CNY 2025/5/19 2028/5/18 No
Xi'an Kanghong Technology
Industry 30000.00 6074.88 CNY 2023/5/26 2032/12/31 No
Konka Hongye Electronics 19010.00 14672.14 CNY 2024/1/24 2038/11/7 No
Konka Flexible Electronics 975.00 117.48 CNY 2022/12/19 2023/12/19 No
Ningbo Kanghanrui Electric
Appliances 6000.00 871.75 CNY 2024/3/14 2025/8/9 No
Ningbo Kanghanrui Electric
Appliances 6000.00 3000.00 CNY 2024/7/13 2025/7/12 No
Frestec Smart Home 10200.00 - CNY 2024/1/30 2027/1/30 No
Anhui Konka 5500.00 2682.47 CNY 2024/9/11 2025/3/29 No
Anhui Konka 10215.95 6881.19 CNY 2021/8/10 2031/7/15 No
Anhui Konka 7000.00 2000.00 CNY 2021/10/29 2026/10/26 No
Anhui Konka 7000.00 2000.00 CNY 2022/10/24 2026/10/26 No
Anhui Konka 2000.00 2000.00 CNY 2024/9/20 2025/3/29 No
Anhui Konka 5000.00 4206.97 CNY 2023/6/25 2028/6/24 No
Anhui Konka 4000.00 4000.00 CNY 2025/3/6 2026/3/6 No
Econ Technology 1498.97 1236.65 CNY 2023/5/22 2024/5/21 No
Econ Technology 4388.00 3779.32 CNY 2024/10/24 2025/8/6 No
Econ Technology 1374.06 1374.06 CNY 2024/12/25 2025/12/24 No
Econ Technology 1374.06 1374.06 CNY 2024/7/30 2025/7/29 No
Econ Technology 1124.23 1103.57 CNY 2024/7/30 2025/1/10 No
Econ Technology 2248.46 2248.22 CNY 2024/9/24 2025/9/23 No
Econ Technology 1498.97 1129.23 CNY 2025/1/14 2026/1/13 No
Econ Technology 749.49 749.49 CNY 2025/1/17 2026/1/17 No
Overseas Chinese Town
Holdings Company 60000.00 60000.00 CNY 2022/9/8 2025/9/8 No
Overseas Chinese Town
Holdings Company 60000.00 60000.00 CNY 2022/10/18 2025/10/18 No
Overseas Chinese Town
Holdings Company 150000.00 150000.00 CNY 2024/1/29 2027/1/29 No
Overseas Chinese Town
Holdings Company 80000.00 80000.00 CNY 2024/3/18 2027/3/18 No
Overseas Chinese Town
Holdings Company 50000.00 38500.00 CNY 2023/9/22 2026/9/22 No
Overseas Chinese Town
Holdings Company 50000.00 45500.00 CNY 2023/12/13 2026/12/13 No
Overseas Chinese Town
Holdings Company 50000.00 50000.00 CNY 2024/3/26 2027/3/26 No
Overseas Chinese Town
Holdings Company 60000.00 59250.00 CNY 2024/6/25 2026/6/25 No
1632025 Interim Report of Konka Group Co. Ltd.
Contracted Actual Whether
Guaranteed party guarantee guarantee Currency Start date of Expiry date of theamount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Overseas Chinese Town
Holdings Company 240000.00 41000.00 CNY 2024/9/26 2029/9/26 No
2) As the secured party
Whether
Guarantee
Guarantor amount Currency Start date of Expiry date of
the
guarantee
(RMB'0000) guarantee guarantee is
completed
Konka Circuit 8200.00 CNY 2024/2/5 2025/2/4 No
Suining Konka Industrial Park 32800.00 CNY 2024/2/5 2025/2/4 No
Zhejiang Kangying Semiconductor Technology
Co. Ltd. 40000.00 CNY 2024/12/3 2025/7/25 No
Overseas Chinese Town Holdings Company 60000.00 CNY 2022/9/8 2025/9/8 No
Overseas Chinese Town Holdings Company 60000.00 CNY 2022/10/18 2025/10/18 No
Overseas Chinese Town Holdings Company 120000.00 CNY 2022/7/14 2025/7/14 No
Overseas Chinese Town Holdings Company 48750.00 CNY 2022/8/23 2025/8/22 No
Overseas Chinese Town Holdings Company 11000.00 CNY 2022/12/22 2025/12/22 No
Overseas Chinese Town Holdings Company 52000.00 CNY 2023/1/18 2026/1/18 No
Overseas Chinese Town Holdings Company 38500.00 CNY 2023/9/22 2026/9/22 No
Overseas Chinese Town Holdings Company 45500.00 CNY 2023/12/13 2026/12/20 No
Overseas Chinese Town Holdings Company 50000.00 CNY 2024/3/26 2027/3/26 No
Overseas Chinese Town Holdings Company 59250.00 CNY 2024/6/25 2026/6/25 No
Overseas Chinese Town Holdings Company 150000.00 CNY 2024/1/29 2027/1/29 No
Overseas Chinese Town Holdings Company 80000.00 CNY 2024/3/18 2027/3/18 No
Overseas Chinese Town Holdings Company 41000.00 CNY 2025/6/23 2028/6/23 No
Chuzhou State-owned Assets Management Co.Ltd. 590.14 CNY 2024/9/11 2025/3/29 No
Chuzhou State-owned Assets Management Co.Ltd. 1513.86 CNY 2021/8/10 2031/7/15 No
Chuzhou State-owned Assets Management Co.Ltd. 440.00 CNY 2021/10/29 2026/10/26 No
Chuzhou State-owned Assets Management Co.Ltd. 440.00 CNY 2022/10/24 2026/10/26 No
Chuzhou State-owned Assets Management Co.Ltd. 440.00 CNY 2024/9/20 2025/3/29 No
Chuzhou State-owned Assets Management Co.Ltd. 925.53 CNY 2023/6/25 2028/6/24 No
Chuzhou State-owned Assets Management 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 2210.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 840.00 USD 2019/12/31 2024/12/31 No
Xiao Yongsong 2121.60 USD 2019/12/31 2024/12/31 No
Shenzhen Unifortune Supply Chain Management
Co. Ltd. 1269.10 USD 2021/6/21 2022/12/31 No
Shenzhen Unifortune Supply Chain Management
Co. Ltd. 651.70 USD 2021/6/21 2022/12/31 No
1642025 Interim Report of Konka Group Co. Ltd.
Whether
Guarantee
Guarantor amount Currency Start date of Expiry date of
the
(RMB'0000) guarantee guarantee
guarantee
is
completed
Guizhou Huajinrun Technology Co. Ltd. 381.15 USD 2022/1/1 2025/12/31 No
Guizhou Huajinrun Technology Co. Ltd. 157.50 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong Technology Co. Ltd. 241.40 USD 2022/1/1 2025/12/31 No
Shenzhen Henglongtong 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
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
Jiangxi Konka 13431.31 CNY 2023/6/15 2027/3/8 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
Xinfeng Microcrystalline 34475.18 CNY 2023/6/15 2025/12/31 No
Jiangxi Konka 56.53 CNY 2024/3/7 2027/3/6 No
Jiangxi High Transparent Substrate 234.44 CNY 2024/3/7 2027/3/6 No
Xinfeng Microcrystalline 1379.77 CNY 2024/3/4 2027/3/3
Hu Zehong 6614.02 CNY 2024/7/15 2029/7/14 No
1652025 Interim Report of Konka Group Co. Ltd.
Whether
Guarantee the
Guarantor amount Currency Start date of Expiry date ofguarantee guarantee guarantee(RMB'0000) is
completed
Liang Ruiling Dai Yaojin 2024/7/15 2025/12/31 No
Xingda Hongye 15.083.08 CNY 2024/7/15 2029/7/14 No
Suiyong Rongxin Asset Management Co. Ltd. 2450.00 CNY 2018/1/1 2025/6/30 No
Suiyong Rongxin Asset Management Co. Ltd. 2842.00 CNY 2018/1/1 2025/12/31
Shenzhen Henglongtong Electronic Technology
Co. Ltd. Guizhou Huajinrun Technology Group
Co. Ltd. Huaying Gaokede Electronic 2022/1/1 2025/12/31 No
Technology Co. Ltd. and Huaying Gaokelong 735.00 CNY
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 2022/1/1 2025/12/31 No
Technology Co. Ltd. and Huaying Gaokelong 488.37 CNY
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 2022/1/1 2025/12/31 No
Technology Co. Ltd. and Huaying Gaokelong 552.72 CNY
Electronic Technology Co.Ltd.Shenzhen Baili Yongxing Technology Co. Ltd. 2018/1/1 2023/12/31 No
Chuzhou Hanshang Electric Appliance Co. Ltd. 4533.96 CNY 2021/5/20 2024/5/19 No
Shenzhen Qianhai Datang Technology Co. Ltd. 441.00 CNY 2024/11/17 2025/11/16 No
Konka Ventures 1322.54 CNY 2021/12/15 2022/11/5 No
(5) Loans from and to related parties
Related party Amount(RMB'0000) Currency Start date Due date
Loans from related parties:
Overseas Chinese Town Holdings
Company 81091.00 CNY 2022/1/10 2025/12/31
Overseas Chinese Town Holdings
Company 50000.00 CNY 2022/5/19 2025/12/31
Overseas Chinese Town Holdings
Company 70000.00 CNY 2022/5/26 2025/12/31
Overseas Chinese Town Holdings
Company 11447.30 CNY 2025/1/1 2025/12/31
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 2025/7/18
Beijing Xuri Shengxing Technology Co.Ltd. 228.67 CNY 2024/12/1 2025/11/30
Total 229304.46
Loans to related parties:
1662025 Interim Report of Konka Group Co. Ltd.
Related party Amount(RMB'0000) Currency Start date Due date
Dongguan Guankang Yuhong Investment
Co. Ltd. 2223.19 CNY 2022/8/6 2025/9/25
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 18315.11 CNY 2023/12/20 2025/12/20
Econ Technology 4996.58 CNY 2023/12/21 2025/12/20
1672025 Interim Report of Konka Group Co. Ltd.
Related party Amount(RMB'0000) Currency Start date Due date
Chongqing Liangshan Industrial Investment
Co. Ltd. 5000.00 CNY 2024/9/29 2025/9/27
Chongqing Liangshan Industrial Investment
Co. Ltd. 5000.00 CNY 2024/9/30 2025/9/27
Total 181349.18
(6) Remuneration for key management personnel
Item The current period The previous period(RMB'0000) (RMB'0000)
Total remuneration 280.89 316.25
6. Receivables from and payables to related parties
(1) Receivables
Ending balance Beginning balance
Related party
Book balance Provision for Book balance Provision forbad debts bad debts
Accounts receivable:
Shenzhen Yaode Technology Co. Ltd. and its
subsidiaries 147122079.87 147122079.87 147734652.41 147734652.41
HOHOELECTRICAL&FURNITURECO.LIMITE
D 122417607.12 107158433.04 124609404.13 93990064.79
Chuzhou Hanshang Electric Appliance Co. Ltd. 71942749.32 1467632.10 47717928.47 973445.73
OCT Enterprises Co. Ltd. and its subsidiaries and
associates 60630816.91 30894893.34 72276979.60 31123407.93
Shenzhen Kanghongxing Intelligent Technology
Co. Ltd. 38341323.98 38341323.98 38344115.39 38344115.39
Anhui Kaikai Shijie E-commerce Co. Ltd. and its
subsidiaries 26421344.36 3926295.34 26677417.75 2692954.15
Shenzhen Jielunte Technology Co. Ltd. and its
subsidiaries and associates 13453439.23 406976.11 13210046.28 269484.95
Shenzhen KONKA E-display Co. Ltd. and its
subsidiaries 1249815.00 171248.23 1367734.51 143334.28
Subtotal of other related parties 23335422.79 4835445.00 14486876.29 4766671.12
Total 504914598.57 334324327.00 486425154.83 320038130.75
Financing accounts receivable/Notes receivable:
Korea Electric Group Co. Ltd. and its
subsidiaries 9105294.82
Chuzhou Hanshang Electric Appliance Co. Ltd. 320000.00
Total 9105294.82 320000.00
Other receivables:
Konka Huanjia Environmental Technology Co. 1744736434.4 1744736434.4 1744736434.4 1744736434.4
Ltd. 9 9 9 9
Chongqing Lanlv Moma Real Estate Development
Co. Ltd. 236698102.31 17677972.27 236698102.31 17677972.27
Yantai Kangyue Investment Co. Ltd. 171069706.45 73609697.70 171069706.45 73609697.70
Chongqing Liangshan Industrial Investment Co.Ltd. 101661232.85 1016612.33 100858150.67 1008581.51
Jiangxi Meiji Enterprise Co. Ltd. 93512640.31 93512640.31 93512640.31 93512640.31
Dai Rongxing 90784881.16 90784881.16 89251531.41 89251531.41
Shenzhen Kanghongxing Intelligent Technology 39130497.17 39130497.17 39130497.17 39044321.62
1682025 Interim Report of Konka Group Co. Ltd.
Ending balance Beginning balance
Related party
Book balance Provision forbad debts Book balance
Provision for
bad debts
Co. Ltd.OCT Enterprises Co. Ltd. and its subsidiaries and
associates 30899262.14 21406588.27 31319550.72 21246621.58
Dongguan Guankang Yuhong Investment Co. Ltd. 22000000.00 2200000.00 22000000.00 2200000.00
HOHOELECTRICAL&FURNITURECO.LIMITE
D 2511845.36 2511845.36 2522359.24 2522359.24
Zhu Xinming 1844316.15 184800.48 1844316.15 184800.48
Hu Zehong 541196.42 280841.22 816533.42 171132.24
Subtotal of other related parties 4904265.47 116908.35 3840950.86 71393.70
Total 2540294380.2 2087169719.1 2537600773.2 2085237486.58 1 0 5
Prepayments:
Kangshengjia Smart Energy (Zhejiang) Co. Ltd. 62162080.62 48239426.19
Puchuang Jiakang Technology Co Ltd. 377322.00 377322.00
OCT Enterprises Co. Ltd. and its subsidiaries and
associates 31330.94 113278.60
Subtotal of other related parties 78415.52 52339.79
Total 62649149.08 48782366.58
Other current assets:
Chuzhou Kangxin Health Industry Development
Co. Ltd. 444316341.09 428413383.27
Yantai Kangyun Industry Development Co. Ltd.and its subsidiaries 283924022.27 274833800.04
Sichuan Hongxinchen Real Estate Development
Co. Ltd. 252316940.51 244320945.73
Shandong Econ Technology Co. Ltd. and its
subsidiaries 238452298.30 233116949.03
Dongguan Guankang Yuhong Investment Co. Ltd. 234570711.43 229643489.20
Sichuan Chengrui Real Estate Co. Ltd. 185442884.91 180452915.47
Total 1639023198.5 1590781482.71 4
Contract assets:
OCT Enterprises Co. Ltd. and its subsidiaries and
associates 1233241.54 57222.40 401807.84 8196.88
Total 1233241.54 57222.40 401807.84 8196.88
(2) Payables
Related party Ending book balance Beginning book balance
Accounts payable:
OCT Enterprises Co. Ltd. and its subsidiaries and associates 37763258.67 42040127.95
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries and
associates 32989142.10 65368676.00
Chuzhou Hanshang Electric Appliance Co. Ltd. 9136836.22 8399596.80
HOHOELECTRICAL&FURNITURECO.LIMITED 5131654.24 5036570.10
Anhui Kaikai Shijie E-commerce Co. Ltd. and its subsidiaries 4326148.17 4326148.17
Panxu Intelligence Co. Ltd. and its subsidiaries 2784534.35 6343887.78
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 2416695.85 11078987.35
Dongguan Konka Smart Electronic Technology Co. Ltd. 525383.45 276747.62
1692025 Interim Report of Konka Group Co. Ltd.
Related party Ending book balance Beginning book balance
Subtotal of other related parties 18996888.03 27908381.92
Total 114070541.08 170779123.69
Notes payable:
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries 16153645.44 10327556.31
Korea Electric Group Co. Ltd. and its subsidiaries 8955172.99 1565908.77
Dongguan Kangjia New Materials Technology Co. Ltd.. 900533.76 1991363.46
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology
Co. Ltd. 550000.00
Total 26559352.19 13884828.54
Contract liabilities/other current liabilities/other non-current
liabilities:
OCT Enterprises Co. Ltd. and its subsidiaries and associates 60881365.58 65821382.94
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology
Co. Ltd. 5872082.55 4449842.05
AUJET INDUSTRY LIMITED 3878358.89 3851376.79
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. 188977.37 188977.37
Shenzhen KONKA E-display Co. Ltd. and its subsidiaries 52420.13 915488.73
Subtotal of other related parties 1933762.39 312452.61
Total 72806966.91 75539520.49
Other payables:
Chuzhou Hanshang Electric Appliance Co. Ltd. 208396691.90 207983241.15
OCT Enterprises Co. Ltd. and its subsidiaries and associates 24863814.83 22391131.89
Guizhou Jiading Mining Management Investment Co. Ltd. 18000000.00 18000000.00
Dongguan Guankang Yuhong Investment Co. Ltd. 15283474.26 12100893.94
Central SOEs Industrial Investment Fund for Poverty-stricken Area
(Jiangxi) Industrial Investment Fund Partnership (L.P.) 9600000.00 14400000.00
Beijing Xuri Shengxing Technology Co. Ltd. 2744514.38 2675533.68
Kangkong Venture Capital (Shenzhen) Co. Ltd. 2560149.39 2523701.42
Shandong Econ Technology Co. Ltd. and its subsidiaries 297764.85 21696728.31
Subtotal of other related parties 24228226.96 16551142.92
Total 305974636.57 318322373.31
XVI. Commitments and contingencies
1. Significant commitments
(1) Capital commitments
Item Ending balance Beginning balance
Large amount contract 147051765.98 173593973.84
Total 147051765.98 173593973.84
(2) Other commitments
As of June 30 2025 there were no other significant commitments required to be disclose by the Group.
2. Contingencies
The Group's material contingencies requiring disclosure are set out below:
(1) Before the Company acquired Jiangxi Konka Jiangxi Konka and its subsidiaries Xinfeng Microcrystalline
1702025 Interim Report of Konka Group Co. Ltd.
and Jiangxi High Transparent Substrate (formerly known as Nano Microcrystalline) provided joint and several
liability guarantee for the loans from Nanchang Rural Commercial Bank Co. Ltd. to Jiangxi Xinxin Jian'an
Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi Science and Technology related parties of
former controlling shareholders of Jiangxi Konka and Nanchang Rural Commercial Bank Co. Ltd. then
transferred the claims to China Great Wall AMC Jiangxi Branch. For the failure of Jiangxi Xinxin Jian'an
Engineering Jiangxi Zhongyi Decorative Material and Jiangxi Shanshi to repay the borrowings on time China
Great Wall AMC Jiangxi Branch filed a lawsuit requesting Jiangxi Xinxin Jian'an Engineering Jiangxi Zhongyi
Decorative Material and Jiangxi Shanshi to repay the loan principal amounting to RMB300 million and the
liquidated damage and interest arising from it and guarantors Jiangxi Konka Jiangxi High Transparent Substrate
and Xinfeng Microcrystalline to bear joint and several liability for such debts.On October 31 2019 the Jiangxi Provincial Higher People's Court ruled in the first instance that Jiangxi Xinxin
Jiangxi Zhongyi Decoration and Jiangxi Shanshi should repay the loan principal totaling RMB300 million
interest and liquidated damages to Great Wall Assets Jiangxi Branch within 10 days from the effective date of the
judgment; Jiangxi Konka ZHU Xinming LENG Sumin Nano Microcrystalline and Xinfeng Microcrystalline
shall be jointly and severally liable for all debts determined in the above judgment; each defendant refused to
accept the judgment of first instance and has filed an appeal and the Supreme People's Court has accepted the
case. On March 24 2021 the Supreme People's Court of the People's Republic of China issued a ruling: I. Revoke
the Civil Judgment (2018) GMC No. 110 of Jiangxi Higher People's Court; II. The case shall be remanded to the
Jiangxi Higher People's Court for retrial. As of the date of issuance of this report the first instance of the retrial
was decided an appeal had been filed and the second instance of the retrial is in progress.The De Facto Controller of Jiangxi Konka ZHU Xinming and his spouse LENG Sumin Jiangxi Xinzixin Real
Estate Co. Ltd. ZHU Zilong ZHU Qingming and ZENG Xiaohong as guarantors provided a total of
approximately RMB 143 million of real estate mortgage guarantee to Great Wall AMC for the above loans and
ZHU Xinming and LENG Sumin also provided joint liability guarantees. In order to avoid the adverse impact of
this case on the Company the Company has agreed in the acquisition agreement of Jiangxi Konka Xinfeng
Microcrystalline and Nano Microcrystalline that all contingent debts incurred by Jiangxi Konka Xinfeng
Microcrystalline and Nano Microcrystalline for the above guarantees shall be born by the original shareholders of
Jiangxi Konka in the form of joint and several liability. Jiangxi Xinzixin Real Estate Co. Ltd. has held a total of
approximately RMB243 million of real estate assets as the case of the anti-guarantee mortgage to the Company
and went through the mortgage registration procedures.
(2) The amount of the subject matter involved in the dispute between Sichuan Shuwu Guangrun Logistics Co. Ltd.
(plaintiff) and the Company's subsidiary Dongguan Konka (defendant) over a purchase and sales contract is
RMB122.8346 million. As of the date of issuance of this report the case was under trial.
(3) The amount of the subject matter involved in the dispute between Micro Crystal Transfer Group Ltd. (plaintiff)
and the Company's subsidiary Chongqing Konka Optoelectronics (defendant) over the equipment purchase and
sales contract is RMB 36.3967 million. As of the date of issuance of this report the case was under trial.
(4) The amount of the subject matter involved in the dispute between Heilongjiang Xinda New Material Co. Ltd.
(plaintiff) and the Company's subsidiary Anhui Konka (defendant) over the purchase and sales contract is RMB
134.4402 million. As of the date of issuance of this report the case was under trial.
(5) The amount of the subject matter involved in the dispute between Alibaba (China) Network Technology Co.
Ltd. (plaintiff) and the Company and Anhui Kaikai Shijie E-commerce Co. Ltd. over the equity transfer is RMB
124.8879 million. As of the date of issuance of this report the case was under trial.
(6) The amount of the subject matter involved in the dispute between Shenzhen Shuwu Industrial Co. Ltd.
(plaintiff) and the Company's subsidiaries Dongguan Konka Electronics Co. Ltd. and Shenzhen Qianhai
Comprehensive Xinfeng Supply Chain Management Co. Ltd. over the tort liability is RMB 37.7997 million. As
of the date of issuance of this report the case was under trial.XVII. Post balance sheet events
1. Important non-adjusting matters
As of the date of issuance of this financial report the Group has no significant non-adjusting matters that need to
be disclosed.
1712025 Interim Report of Konka Group Co. Ltd.
2. Sales return
As of the date of this financial report the Group had no material sales returns.
3. Notes to other post balance sheet events
Except for the matters disclosed on post balance sheet events as mentioned above the Group had no other post
balance sheet events.XVIII. Other significant events
1. Change in the controlling shareholder: to advance the specialized integration between central enterprises and
optimize resource allocation on April 29 2025 OCT Group and its persons acting in concert entered into a Share
Transfer Agreement of Konka Group Co. Ltd. on Zero Consideration Basis with Panshi Runchuang and Hemao
Co. Ltd. both wholly-owned subsidiaries of China Resources pursuant to which they plan to transfer all their
shares in the Company to Panshi Runchuang and Hemao Co. Ltd. on a zero consideration basis. In July 2025 the
aforementioned share transfer on a zero consideration basis was completed with the transfer of ownership duly
registered. Panshi Runchuang has become the controlling shareholder of the Company and the actual controller
has changed to China Resources Co. Ltd. while the ultimate actual controller remains the State-owned Assets
Supervision and Administration Commission of the State Council (SASAC).
2. Except for the above events the Group had no other significant events.
XIX. Notes to the main items of the financial statements of the parent company
1. Accounts receivable
(1) Accounts receivable listed by aging
Aging Ending book balance Beginning book balance
Within one year (inclusive) 2658742884.20 2478867657.14
1-2 years 77048975.43 269445994.78
2-3 years 28618813.60 25878752.19
3-4 years 42717060.14 42081276.61
4-5 years 19006060.15 10744497.16
Over 5 years 856646818.27 848569108.69
Total 3682780611.79 3675587286.57
(2) Classified presentation by the method of provision for bad debts
Ending balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside for
bad debts by the single 751434642.02 20.40 751374354.01 99.99 60288.01
item
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 232582274.74 6.32 140079665.72 60.23 92502609.02
Related party
combination 2698763695.03 73.28 2698763695.03
Subtotal of portfolio 2931345969.77 79.60 140079665.72 4.78 2791266304.05
Total 3682780611.79 100.00 891454019.73 24.21 2791326592.06
1722025 Interim Report of Konka Group Co. Ltd.
Beginning balance
Book balance Provision for bad debts
Type
Provision Book value
Amount Percentage(%) Amount percentage(%)
Provision set aside for
bad debts by the single 751101547.52 20.43 751041259.51 99.99 60288.01
item
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 262862169.32 7.15 141146416.75 53.70 121715752.57
Related party
combination 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 set aside for bad debts of accounts receivable by single item
Beginning balance Ending balance
Name Provision for Provision for bad Provision ReasonsBook balance bad debts Book balance debts percentage for the(%) provision
CEFC Not
Shanghai
International 298855950.30 298855950.30 298855950.30 298855950.30 100.00
expected to
be
Group Limited recoverable
Hongtu Not
Sanpower expected to
Technology 200000000.00 200000000.00 200000000.00 200000000.00 100.00 be
Co. Ltd. recoverable
Zhongfu
Tiangong Not
Construction 71289096.65 71289096.65 71289096.65 71289096.65 100.00 expected to
Group Co. be
Ltd. recoverable
CCCC First Not
Harbor 55438105.00 55438105.00 55438105.00 55438105.00 100.00 expected toEngineering be
Company Ltd. recoverable
China Energy Not
Electric Fuel 49993564.16 49993564.16 49993564.16 49993564.16 100.00 expected to
Co. Ltd. berecoverable
Shenzhen
Kanghongxing Not
Intelligent 36211057.55 36211057.55 36211057.55 36211057.55 100.00 expected to
Technology be
Co. Ltd. recoverable
Expected
Others 39313773.86 39253485.85 39646868.36 39586580.35 99.85 to bedifficult to
recover
Total 751101547.52 751041259.51 751434642.02 751374354.01 99.99 —
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
Aging Ending balance
1732025 Interim Report of Konka Group Co. Ltd.
Book balance Provision for bad debts Provision percentage (%)
Within 1 year 78875435.94 1609058.87 2.04
1-2 years 825735.49 82738.70 10.02
2-3 years 2508.00 569.07 22.69
3-4 years 41262233.00 26770936.77 64.88
4-5 years 792862.10 792862.10 100.00
Over 5 years 110823500.21 110823500.21 100.00
Total 232582274.74 140079665.72 60.23
* In the portfolio accounts receivable of provision for expected credit loss made by other methods
Ending balance
Aging
Book balance Provision for bad debts Provision percentage (%)
Related party combination 2698763695.03
Total 2698763695.03
(3) Provision reversal or recovery of provision for bad debts in the current period
Change in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of accounts
receivable 892187676.26 1185.49 734842.02
Total 892187676.26 1185.49 734842.02
(Continued)
Change in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of accounts
receivable 891454019.73
Total 891454019.73
(4) Accounts receivable actually written off in the current period
There were no accounts receivable actually written off in the current period.
(5) Top five accounts receivable and contract assets in ending balances collected by debtors
The total amount of accounts receivable with top five Ending balance categorized by debtors in the current period
was RMB 2564016546.63 accounting for 69.62% of the total Ending balance of accounts receivable. The total
Ending balance of provision for bad debts correspondingly set aside was RMB 298855950.30.
5.5.2 Other receivables
Item Ending balance Beginning balance
Interest receivable
Dividends receivable 395938176.42 397729468.60
Other receivables 7441767070.31 7812366963.81
Total 7837705246.73 8210096432.41
2.1 Dividends receivable
(1) Classification
Investee Ending balance Beginning balance
Hong Kong Konka Co. Ltd. 115938176.42 117729468.60
Suining Konka Industrial Park Development Co. 280000000.00
Ltd. 280000000.00
1742025 Interim Report of Konka Group Co. Ltd.
Investee Ending balance Beginning balance
Total 395938176.42 397729468.60
2.2 Other receivables
(1) Classified by account nature
Nature of fund Ending book balance Beginning book balance
Intercourse funds among subsidiaries 7096005209.75 7470528350.51
Energy-saving subsidies receivable 141549150.00 141549150.00
Intercourse funds with other related parties 2208266001.02 2217059558.78
Deposit and margin 9913962.43 11203961.90
Others 68680638.69 51145919.15
Total 9524414961.89 9891486940.34
(2) Other receivables disclosed by aging
Aging Ending book balance Beginning book balance
Within one year (inclusive) 2410603083.46 2833825882.55
1-2 years 1699570927.24 2791206932.00
2-3 years 2364637266.19 2093828942.23
3-4 years 1012201032.68 198020662.24
4-5 years 429200428.29 438628738.59
Over 5 years 1608202224.03 1535975782.73
Total 9524414961.89 9891486940.34
(3) Classified disclosure of other receivables by the method of provision for bad debts
Ending balance
Book balance Provision for bad debts
Type
Amount Percentage
Provision Book value
(%) Amount percentage(%)
Provision set aside
for bad debts by 2346639698.77 24.64 2030143279.98 86.51 316496418.79
the single item
Provision set aside
for bad debts by
portfolio
Of which: Aging
portfolio 67136179.50 0.70 43716766.91 65.12 23419412.59
Low Risk
Combination 14633873.87 0.15 8787844.69 60.05 5846029.18
Related party
combination 7096005209.75 74.51 7096005209.75
Subtotal of
portfolio 7177775263.12 75.36 52504611.60 0.73 7125270651.52
Total 9524414961.89 100.00 2082647891.58 21.87 7441767070.31
Beginning balance
Book balance Provision for bad debts
Type
Provision Book value
Amount Percentage(%) Amount percentage(%)
1752025 Interim Report of Konka Group Co. Ltd.
Beginning balance
Book balance Provision for bad debts
Type
Percentage Provision Book valueAmount (%) Amount percentage(%)
Provision set aside for
bad debts by the single 2346639698.77 23.72 2030143279.98 86.51 316496418.79
item
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 59556884.46 0.60 41789999.23 70.17 17766885.23
Low Risk Combination 14762006.60 0.15 7186697.32 48.68 7575309.28
Related party
combination 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
Beginning balance
Aging
Book balance Provision for bad debts Provision percentage(%)
Within 1 year 2173904981.15 248284.74 0.01
1-2 years 1520311016.85 112170.82 0.01
2-3 years 2325204965.87 3175846.62 0.14
3-4 years 886560279.84 1598233.59 0.18
4-5 years 112776451.30 1580134.54 1.4
Over 5 years 159017568.11 45789941.29 28.8
Total 7177775263.12 52504611.60 0.73
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 loss
Provision for bad debts Expected credit during the whole
Expected credit loss
Total
loss for the next 12 outstanding during the whole
months maturity (without outstanding maturity
credit impairment) (with credit impairment)
Balance as of January 1
202597657.3948879039.162030143279.982079119976.53
Balance as of January 1
2025 in the current
period
-- Transferred to Phase
II -23099.54 23099.54
-- Transferred to Phase
III
-- Reclassified under
Phase II
-- Reclassified under
Phase I
Provision in the current
period 173726.88 3408335.60 3582062.48
1762025 Interim Report of Konka Group Co. Ltd.
Phase I Phase II Phase III
Expected credit loss
Expected credit during the whole Expected credit lossProvision for bad debts Total
loss for the next 12 outstanding during the whole
months maturity (without outstanding maturity
credit impairment) (with credit impairment)
Recovery in the current
period 54147.43 54147.43
Charge-off in the current
period
Write-off in the current
period
Other changes
Balance as of June 30
2026248284.7352256326.872030143279.982082647891.58
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 the credit impairment after initial confirmation. For other receivables of credit impairment that
have occurred the loss provision is measured according to the credit losses that have occurred throughout the
duration.
(4) Provision reversal or recovery of provision for bad debts in the current period
Change in the current period
Type Beginning balance
Provision Recovered or reversed
Provision for bad debts of other 2079119976.53
receivables 3582062.48 54147.43
Total 2079119976.53 3582062.48 54147.43
(Continued)
Change in the current period
Type Ending balance
Charge-off or write-off Others
Provision for bad debts of other
receivables 2082647891.58
Total 2082647891.58
(5) Other receivables actually write off in the current period
There were no other receivables actually written off in the current period.
(6) Top five other receivables in ending balances collected by debtors
The total amount of other receivables with top five ending balance categorized by debtors in the current period
was RMB 6550145326.30 accounting for 68.77% of the total Ending balance of other receivables. The total
ending balance of provision for bad debts correspondingly set aside was RMB 1744736434.49.
1772025 Interim Report of Konka Group Co. Ltd.
3. Long-term equity investments
Ending balance Beginning balance
Item
Book balance Provision for Provision forimpairment Book value Book balance impairment Book value
Investment in subsidiaries 7820294811.83 689680000.00 7130614811.83 7825394811.83 689680000.00 7135714811.83
Investment in associates 1696284934.23 590635945.27 1105648988.96 2256836610.99 590635945.27 1666200665.72
Total 9516579746.06 1280315945.27 8236263800.79 10082231422.82 1280315945.27 8801915477.55
(1) Investment in subsidiaries
Provision for Changes in the current period
Beginning balance impairment Ending balance Provision for
Investee Increase in the Decrease in the Provision set impairment(Book value) Beginning
investment investment aside for Others
(Book value)
balance Ending balanceimpairment
Konka Ventures 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 360000000.00
Technology 360000000.00
Development of science 100000000.00
and technology industry 100000000.00
Anhui Tongchuang 779702612.22 779702612.22
Kangjiatong 30749800.00 30749800.00
Pengrun Technology 25500000.00 25500000.00
Beijing Konka Electronic 200000000.00 200000000.00
Konka Circuit 740752721.18 740752721.18
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
1782025 Interim Report of Konka Group Co. Ltd.
Provision for Changes in the current period
Beginning balance impairment Provision for
Investee Provision set
Ending balance impairment
(Book value) Beginning Increase in the Decrease in the aside for Others (Book value)
balance investment investment Ending balanceimpairment
Jiangxi Konka 689680000.00 - 689680000.00
Shenzhen Nianhua 30000000.00 30000000.00
Shenzhen Konka 100000000.00
Semiconductor 100000000.00
Ji'an Konka 50000.00 50000.00
Suining Konka Industrial 200000000.00
Park 200000000.00
Kangrong Jiayuan 5100000.00 5100000.00 -
Suining Electronic 200000000.00
Technological Innovation 200000000.00
Shenzhen Chuangzhi 10000000.00
Electrical Appliances 10000000.00
Chongqing Optoelectronic 1400000000.00
Technology 1400000000.00
Kowin Memory 192520000.00
(Shenzhen) 192520000.00
Ningbo Kanghanrui 90000000.00
Electric Appliances 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 50000000.00
(Hebei) 50000000.00
Konka Central China 30000000.00 30000000.00
Guizhou Kanggui Material 28000000.00
Technology 28000000.00
Nantong Kanghai 15300000.00 15300000.00
Jiangxi Konka High-tech 50000000.00
Park 50000000.00
Shangrao Konka Electronic 30000000.00 30000000.00
1792025 Interim Report of Konka Group Co. Ltd.
Provision for Changes in the current period
Beginning balance impairment Provision for
Investee Provision set
Ending balance impairment
(Book value) Beginning Increase in the Decrease in the aside for Others (Book value)
balance investment investment Ending balanceimpairment
Technology Innovation
Xi'an Kanghong 12000000.00
Technology Industry 12000000.00
Xi'an Konka Intelligent 50000000.00
Technology 50000000.00
Songyang Konka 30000000.00
Intelligent 30000000.00
Konka North China 30000000.00 30000000.00
Total 7135714811.83 689680000.00 5100000.00 7130614811.83 689680000.00
(2) Investment in associates
Changes in the current period
Beginning balance Beginning balance
Investee of provision for
(Book value) Increase in the Decrease
Profit or loss of Changes in other
impairment investment investment recognized comprehensiveInvestment by the equity method income
Anhui Kaikai Shijie E-commerce Co. Ltd. 6274799.50
Kunshan Kangsheng Investment Development
Co. Ltd. 40891367.28 -2626199.05
Shanxi Silk Road Cloud Intelligent Tech Co. Ltd. 3467934.60 -466357.26
Shenzhen Kanghongxing Intelligent Technology
Co. Ltd. 5158909.06
Shenzhen Zhongkang Beidou Technology Co.Ltd.Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 5896518.07 -2926157.83
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Group Co. Ltd. 545842155.57
Shenzhen KONKA E-display Co. Ltd. 24007406.43 4073801.48
Chuzhou Konka Technology Industry
Development Co. Ltd.
1802025 Interim Report of Konka Group Co. Ltd.
Changes in the current period
Beginning balance Beginning balance
Investee of provision for
(Book value) Increase in the Decrease
Profit or loss of Changes in other
impairment investment investment recognized comprehensiveInvestment by the equity method income
Chuzhou Kangjin Health Industrial Development
Co. Ltd. 92285525.83 -2655737.66
Nantong Kangjian Technology Industrial Park
Operations and Management Co. Ltd. 5002208.91 -2835611.92
Shenzhen Kangyue Enterprise Co. Ltd. 230011.61
Dongguan Guankang Yuhong Investment Co.Ltd.Chongqing Yuanlv Benpao Real Estate Co. Ltd.Chuzhou Kangxin Health Industry Development
Co. Ltd. 6203105.97 -949568.43
E3info (Hainan) Technology Co. Ltd. 4574609.73 8000000.00
Shenzhen Kangpeng Digital Technology Co. Ltd. 1310766.92 -328558.61
Yantai Kangyun Industrial Development Co. Ltd.Econ Technology 714353682.97 278887555.25 -682702.96
Dongguan Kangjia New Materials Technology
Co. Ltd.. 3231195.79 -818871.96
Chongqing E2info Technology Co. Ltd. 194546039.92
Sichuan Chengrui Real Estate Co. Ltd.Wuhan Kangtang Information Technology Co.Ltd. 15853661.78 -897317.07
Sichuan Hongxinchen Real Estate Development
Co. Ltd. 2459686.45
Konka Huanjia Environmental Technology Co.Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co.Ltd. 1000000.00 -37921.98
Total 1666200665.72 590635945.27 1000000.00 8000000.00 -11151203.25
1812025 Interim Report of Konka Group Co. Ltd.
(Continued)
Changes in the current period
Cash dividends or Ending balance
Ending balance of
Investee Changes in other Provision set aside provision for(Book value)
equities profits declared to for impairment Others impairmentbe distributed
Anhui Kaikai Shijie E-commerce Co. Ltd. 6274799.50
Kunshan Kangsheng Investment Development
Co. Ltd. 38265168.23
Shanxi Silk Road Cloud Intelligent Tech Co. Ltd. 3001577.34
Shenzhen Kanghongxing Intelligent Technology
Co. Ltd. 5158909.06
Shenzhen Zhongkang Beidou Technology Co.Ltd.Shenzhen Kangjia Jiapin Intelligent Electrical
Apparatus Technology Co. Ltd. 2970360.24
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Group Co. Ltd. 8618395.70 -537223759.87
Shenzhen KONKA E-display Co. Ltd. 28081207.91
Chuzhou Konka Technology Industry
Development Co. Ltd.Chuzhou Kangjin Health Industrial Development
Co. Ltd. 89629788.17
Nantong Kangjian Technology Industrial Park
Operations and Management Co. Ltd. 2166596.99
Shenzhen Kangyue Enterprise Co. Ltd. 230011.61
Dongguan Guankang Yuhong Investment Co. Ltd.Chongqing Yuanlv Benpao Real Estate Co. Ltd.Chuzhou Kangxin Health Industry Development
Co. Ltd. 5253537.54
E3info (Hainan) Technology Co. Ltd. 3425390.27
Shenzhen Kangpeng Digital Technology Co. Ltd. 982208.31
Yantai Kangyun Industrial Development Co. Ltd.Econ Technology 713670980.01 278887555.25
Dongguan Kangjia New Materials Technology 2412323.83
1822025 Interim Report of Konka Group Co. Ltd.
Changes in the current period
Cash dividends or Ending balance
Ending balance of
Investee Changes in other Provision set aside provision for(Book value)
equities profits declared to for impairment Others impairmentbe distributed
Co. Ltd..Chongqing E2info Technology Co. Ltd. 194546039.92
Sichuan Chengrui Real Estate Co. Ltd.Wuhan Kangtang Information Technology Co.Ltd. 14956344.71
Sichuan Hongxinchen Real Estate Development
Co. Ltd. 2459686.45
Konka Huanjia Environmental Technology Co.Ltd. 91800000.00
Kangrong Jiayuan Technology (Zhejiang) Co.Ltd. 16291.79 978369.81
Total 8618395.70 -533782077.81 1105648988.96 590635945.27
1832025 Interim Report of Konka Group Co. Ltd.
4. Operating income and operating costs
(1) Operating revenue and cost of sales
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Principal
activity
Other
Total
(2) Information in relation to the trade price apportioned to the residual contract performance obligation
At the end of the current period the revenue corresponding to the performance obligations that have been signed
but not yet performed or not yet fully performed is RMB 7895779.45 of which RMB 7895779.45 is expected
to be recognized as revenue in 2025.
5. Investment income
Item Amount incurred in the Amount incurred in thecurrent period previous period
Long-term equity investment income calculated by the cost method
Returns on long-term equity investments calculated by the equity
method -11151203.25 9290355.87
Return on investment arising from the disposal of long-term equity
investments 7970560.10 16490883.27
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 -73011755.91 11456.91
Dividend income received from investments in other equity
instruments during the holding period
Gains from remeasurement of residual stock rights at fair value
after losing control power
Interest income from debt investments during the holding period 1970451.37 2140000.00
Interest income from other debt investments during the holding
period
Investment income from disposal of other debt investments
Income from the derecognition of financial assets at amortized cost
(“-” for loss) -226103.98 -152872.14
Conversion of long-term equity investments accounted for by the
equity method to financial assets 655666680.89
Total 581639183.08 32020268.53
XX. Supplementary information
1. Statement of non-recurring profit or loss in the current period
Item Current amount Note
Profit or losses on disposal of non-current assets (including the portion offset for
provisions for asset impairment) 30398244.09
Government grants included in profit and loss of the current period (except for
government grants that are closely related to the Company's normal business operation
comply with national policies and are enjoyed in accordance with defined criteria and 39470052.40
have a continuing impact on the Company's profit or loss)
Gain or loss 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 Company’s ordinary course of 103288444.17
business)
Dispossession surcharge to non-financial institutions included in the current profit and
1842025 Interim Report of Konka Group Co. Ltd.
Item Current amount Note
loss
Gain/Loss on entrusting others with investments or asset management
Gain or loss on loan entrustment 48726483.93
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
Gains arising from business combination when the investment cost is less than the
recognized fair value of net assets of the investee
Current net profit or loss of subsidiaries acquired in business combination under the
same control from period-beginning to combination date
Profit/Loss on non-monetary asset swap
Gain or loss on debt restructuring
One-time costs incurred by an enterprise as a result of the discontinuation of a related
operating activity such as expenses for relocating employees
One-time impact on profit or loss for the current period 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 and losses arising from changes in the fair
value of employee compensation payable after the date of exercisability
Gain/loss on change in fair value of investment property subject to follow-up
measurement at fair value method
Income from transactions at significantly unfair prices
Profits or 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 above 6607610.65
Other gains and losses that meet the definition of non-recurring gain/loss 655666680.89
Subtotal 884157516.13
Less: Income tax effects 223117383.95
Non-controlling interests effects (net of tax) 16866026.35
Total 644174105.83 —
Particulars about other gains and losses that meet the definition of non-recurring gain/loss:
Item Amount Reason
During the reporting period the Company changed its
accounting treatment for the equity investment in
Trading financial assets 655666680.89 Wuhan Tianyuan Group Co. Ltd. reclassifying it fromlong-term equity investment (under equity method) to
trading financial assets resulting in non-recurring gains
or losses
The items that are not listed in the Explanatory Announcement No. 1 on Information Disclosure by Companies
Offering Securities to the Public - Non-recurring Profit or Loss (Revised in 2023) but recognized by the Company
as non-recurring profit or loss items and involving significant amounts and listed non-recurring profit or loss
items recognized as recurring profit or loss items
Item Amount Reason
Government grants which are closely related to the
Additional offset and deduction of normal business of the company and which are in
software tax refund and VAT 1500685.37 accordance with national policies and certain standard
quota or quantitative amount
1852025 Interim Report of Konka Group Co. Ltd.
2. Return on net assets and earnings per share
Weighted average EPS (RMB/share)
Profit for the reporting period rate of return on net assets
(%) Basic earnings per share
Diluted earnings per
share
Net profit attributable to ordinary
shareholders of the parent company -18.13 -0.1592 -0.1592
Net profit attributable to ordinary
shareholders of the parent company -48.60 -0.4267 -0.4267
before non-recurring gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports disclosed in accordance with International
Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences in net profit and net assets between financial reports disclosed in accordance with Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not Applicable
(3) Explanation of the causes for differences in accounting data under domestic and overseas accounting standards;
if adjustments have been made to the data audited by an overseas auditing institution the name of such overseas
institution shall be specified
□ Applicable √ Not Applicable
1862025 Interim Report of Konka Group Co. Ltd.
Section IX Other Data
I. Other significant social safety issues
Whether there are other significant social safety issues concerning the listed company and its subsidiaries
□ Yes □ No √ Not applicable
Whether any administrative punishments were received in the reporting period
□ Yes □ No √ Not applicable
II. Registration form for reception of researches communications interviews and other
activities during the reporting period
√ Applicable □ Not applicable
Main points of
Reception Place of Method of Type of discussion and Index of basic information of
date reception reception object of Object of receptionreception information researchesprovided
Shenzhen Pingbang Fund Management Co.Ltd.: SUN Jianchao and DONG Chao
Beijing GAGE Management Co. Ltd.: LI
Min Shenzhen Kuayue Fund Management
Co. Ltd.: GE Yunshuai Shenzhen
Chaoshang Boss Investment Group Co.Ltd.: ZHANG Jinbang and LIANG Huana
Shenzhen SRDI Association: WANG Yan
Qianhai Yangtze River Fund (Shenzhen)
Co. Ltd.: ZHANG Hui Shenzhen Nuoyin
Conference Asset Management Co. Ltd.: HOU Heng For details
Room of Institution of China Securities Shenzhen please refer to
February Office Field research Institutions Branch: ZHAN Jiaqi Aden Financial Group
the Investor
13 2025 Building of individuals Co. Ltd.: ZHU Rongzhen Northeast Relations Http://www.cninfo.com.cn/new/index
Konka R&D Securities Co. Ltd. Shenzhen Branch: Activity Record
Building ZHANG Jun ZHOU Heming and HUANG Form
Shiyan Meili Investment Fund Management (No.2025-01)
(Beijing) Co. Ltd.: ZHANG Xiang
Guangzhou Blue Ocean Private Equity
Securities Investment Fund Management
Co. Ltd.: PAN Weiyu Hainan Liangcheng
Private Equity Securities Investment Fund
Management Partnership (Limited
Partnership): DAI Fang Individual
investors: HUANG Xuexia CHEN Kexin
LI Jun and PAN Shuohua
Conference For details
Room of Online Investors participating in the 2024 Online please refer to
May 7 Office communication Performance Briefing of Konka Group Co. the Investor
2025 Building of on the network Individual Ltd. through the "Cloud Interview" column Relations Http://www.cninfo.com.cn/new/index
Konka R&D platform of the Shenzhen Stock Exchange Activity Record
Building (http://irm.cninfo.com.cn) Form(No.2025-02)
Conference For details
Room of please refer to
May 9 Office the Investor
2025 Building of Field research Institution Pacific Securities: JIN Tongyu Relations Http://www.cninfo.com.cn/new/index
Konka R&D Activity Record
Building Form(No.2025-03)
Shenzhen Qingpu Capital Management Co.Ltd.: YAN Pu Shenzhen Zeyuan Private
Equity Fund Co. Ltd.: SUN Yan Shiju
Holdings Co. Ltd.: ZOU Deqi Shenzhen
Conference Rongxintai Private Equity Fund For details
Room of Management Co. Ltd.: CAO Wei Shenzhen please refer to
May 13 Office Nanfang Huijin Investment Management the Investor
2025 Building of Field research Institution Co. Ltd.: LIU Jihong AIGC Committee of Relations Http://www.cninfo.com.cn/new/index
Konka R&D Shenzhen Artificial Intelligence Industry Activity Record
Building Association: ZENG Lunxing Xincheng FormRuiyuan Enterprise Management Consulting (No.2025-04)
(Shenzhen) Co. Ltd.: JIANG Yan Shenzhen
Rongxintai Private Equity Fund
Management Co. Ltd.: WAN Huan Beijing
Dentons Law Firm (Shenzhen): XU Yao
May 20 Conference Field research Institution Southwest Securities: LA Ruimeng For details Http://www.cninfo.com.cn/new/indexRoom of please refer to
1872025 Interim Report of Konka Group Co. Ltd.
2025 Office the Investor
Building of Relations
Konka R&D Activity Record
Building Form
(No.2025-05)
Conference Investors participating in the Investor For details
Room of Online Briefing Regarding the Termination of the please refer to
June 20 Office communication Share-for-Asset Acquisition and Supporting the Investor
2025 Building of on the network Individual Fundraising of Konka Group Co. Ltd. Relations Http://www.cninfo.com.cn/new/index
Konka R&D platform through the "Cloud Interview" column of Activity Record
Building the Shenzhen Stock Exchange Form(http://irm.cninfo.com.cn) (No.2025-06)
III. Current accounts between the listed company and the controlling shareholder and other
related parties
√ Applicable □ Not applicable
Unit: RMB'0000
Amount
incurred in the Amount repaid Interest Interest
Counterparty Nature Beginning balance in the reporting Ending balance
reporting revenue costsperiod
period
Chuzhou Kangxin
Health Industry Non-operating
Development Co. current accounts 42841.34 44431.63 1590.29
Ltd.Yantai Kangyun
Industrial Non-operating
Development Co. current accounts 27483.38 28392.40 909.02
Ltd.Dongguan
Guankang
Non-operating
Yuhong current accounts 22964.35 23457.07 492.72
Investment Co.Ltd.Econ Technology Non-operating
current accounts 23311.69 23845.23 533.54
Sichuan Chengrui Non-operating
Real Estate Co. current accounts 18045.29 18544.29 499.00
Ltd.Chongqing Lanlv
Moma Real Estate Non-operating
Development Co. current accounts 23669.81 23669.81
Ltd.Yantai Kangyue
Investment Co. Non-operatingcurrent accounts 17106.97 17106.97
Ltd.Jiangxi Meiji Non-operating
Enterprise Co. current accounts 9351.26 9351.26
Ltd.Chongqing
Liangshan
Non-operating
Industrial current accounts 10085.82 85.82 10166.12 166.12
Investment Co.Ltd.Sichuan
Hongxinchen Real
Estate Non-operating
current accounts 24432.09 25231.69 799.60
Development Co.Ltd.Konka Huanjia
Environmental Non-operating
Technology Co. current accounts 174473.64 174473.64
Ltd.Anhui Konka
Tongchuang
Electrical Non-operatingcurrent accounts 1100.47 161.52 31.20 1230.79
Appliances Co.Ltd.
1882025 Interim Report of Konka Group Co. Ltd.
Chengdu Konka Non-operating
Electronics Co. current accounts 3.50 0.20 3.30
Ltd.Chuzhou Konka
Precision
Intelligent Non-operating
Manufacturing current accounts 86.42 86.91 57.95 115.38
Technology Co.Ltd.Dongguan Konka Non-operating
Electronics Co. current accounts 78773.04 4498.97 1500.00 81791.92 19.91
Ltd.Hainan Konka
Technology Co. Non-operating
current accounts 4781.31 4587.21 4587.21 4781.31
Ltd.Henan Frestec
Refrigeration Non-operating
Appliance Co. current accounts 9272.61 0.10 227.91 9323.93 279.13
Ltd.Jiangxi High
Transparent
Substrate Material Non-operating
current accounts 15580.38 990.00 990.02 15989.28 408.92
Technology Co.Ltd.Jiangxi Konka
New Material Non-operating
Technology Co. current accounts 117291.21 969.00 969.03 120164.61 2873.43
Ltd.Jiangxi Xinfeng Non-operating
Microcrystalline current accounts 18784.17 6000.00 6001.38 19308.97 526.18
Jade Co. Ltd.Hongdin Non-operating
International current accounts 19889.33 21427.70 27951.26 13394.62 28.85
Trading Limited
Konka Ventures
Development Non-operating
(Shenzhen) Co. current accounts 904.61 13.21 13.21 923.17 18.56
Ltd.Konka Electronic
Material
Non-operating
Technology current accounts 0.13 0.46 0.46 0.13
(Shenzhen) Co.Ltd.Konka Suiyong
Investment Non-operating
(Shenzhen) Co. current accounts 14023.50 14516.21 492.71
Ltd.Kowin Memory
Technology Non-operating
(Shenzhen) Co. current accounts 5024.27 3702.37 4510.86 4301.78 86.00
Limited
Liaoyang
Kangshun Smart Non-operating
Technology Co. current accounts 4500.00 40.00 4540.00
Ltd.Ningbo
Kanghanrui Non-operating
Electric current accounts 7.52 51.71 51.33 7.90
Appliances Co.Ltd.Shenzhen Konka
Electronics Non-operating
Technology Co. current accounts 194548.81 50341.40 80331.96 164598.07 39.82
Ltd.Shenzhen Konka
Pengrun Non-operating
Technology & current accounts 4182.63 4182.63
Industry Co. Ltd.Shenzhen Konka Non-operating
Telecommunicati current accounts 10706.38 1.68 1.68 11000.64 294.26
1892025 Interim Report of Konka Group Co. Ltd.
ons Technology
Co. Ltd.Shenzhen Konka
Semiconductor Non-operating
Technology Co. current accounts 13546.00 870.00 6206.00 8210.00
Ltd.Shenzhen
Nianhua Non-operating
Enterprise current accounts 8200.00 8200.00
Management Co.Ltd.Shenzhen Konka
Unifortune Non-operating
Technology Co. current accounts 0.12 0.37 0.37 0.12
Ltd.Shenzhen Konka
Investment Non-operating
current accounts 91330.00 1420.04 1932.04 91094.76 276.76
Holding Co. Ltd.Shenzhen Konka
Technology Non-operating
Industry current accounts 2007.15 13.05 2.80 2017.40
Development Co.Ltd.Suining Jiarun Non-operating
Property Co. Ltd. current accounts 104683.44 2133.44 2133.44 104683.44
Xi'an Kanghong
Technology
Industry Non-operatingcurrent accounts 1346.84 1386.66 39.82
Development Co.Ltd.Hong Kong Non-operating
Konka Co. Ltd. current accounts 22370.43 1315.94 23686.37
Yibin Kangrun
Environmental Non-operating
Technology Co. current accounts 4010.90 4065.30 54.40
Ltd.Chain Kingdom
Semiconductor Non-operating
(Shaoxing) Co. current accounts 0.60 2.36 2.25 0.71
Ltd.Anhui Konka Non-operating
Electronics Co. current accounts 56.63 1.14 57.77
Ltd.Shenzhen Konka Non-operating
Circuit Co. Ltd. current accounts 3.14 18.24 9.59 11.79
Shenzhen
Kangcheng
Technology Non-operating
Innovation and current accounts 0.01 15.47 6.62 8.86
Development Co.Ltd.Shenzhen Konka
Zhitong Non-operating
Technology Co. current accounts 19.53 9.16 10.24 18.45
Ltd.Sichuan Konka
Smart Terminal Non-operating
Technology Co. current accounts 0.05 54.02 28.21 25.86
Ltd
Suining Konka
Industrial Park Non-operating
Development Co. current accounts 3.16 17.71 6.89 13.98
Ltd.Henan Frestec
Smart Home Non-operating
Technology Co. current accounts 10.54 30.74 36.47 4.81
Ltd.Jiangsu Konka
Smart Appliance Non-operatingcurrent accounts 2.00 2.00
Co. Ltd.
1902025 Interim Report of Konka Group Co. Ltd.
Xi'an Konka
Intelligent Non-operating
Appliance Co. current accounts 2.00 2.00
Ltd.Guangdong
Xingda Hongye Non-operating
Electronics Co. current accounts 0.32 0.32
Ltd.Shaanxi Konka
Smart Home Non-operating
Appliance Co. current accounts 21.42 21.42
Ltd.Xiaojia
Technology Co. Non-operating
current accounts 2.12 2.12
Ltd.Suining Konka
Flexible
Non-operating
Electronic current accounts 0.68 0.68
Technology Co.Ltd.Dai Rongxing Non-operating
current accounts 8925.15 9078.49 153.34
Hu Zehong Non-operating
current accounts 81.65 28.37 54.12 0.84
Zhu Xinming Non-operating
current accounts 184.43 184.43
OCT Enterprises
Co. Ltd. and its Operating current
subsidiaries and accounts 10411.17 1372.06 2503.76 9279.47
associates
Total -- 1160420.87 100170.52 144312.37 1126862.24 10583.22
Relevant decision- The Company has fulfilled the relevant approval procedures and information disclosure obligations for related-party transactions and
making there is no situation where the controlling shareholder and its affiliated enterprises occupy the Company's funds for non-operating
procedures purposes.Measures for
ensuring the The Company adheres to the principle of "standardized operation and risk prevention" to ensure the safety of the Company's dailyoperations and funds.safety of funds
Konka Group Co. Ltd.Board of Directors
August 29 2025
191
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