Konka Group Co. Ltd. Interim Report 2024
KONKAGROUPCO. LTD.INTERIM REPORT 2024
August 2024
1Konka Group Co. Ltd. Interim Report 2024
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors
supervisors and senior management of Konka Group Co. Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the factuality accuracy and completeness of the contents of
this Report and its summary and shall be jointly and severally liable for any
misrepresentations misleading statements or material omissions therein.Cao Shiping the Company’s legal representative Nie Yong the Company’s Chief Financial
Officer (CFO) and Ping Heng the head of the Company’s financial department (equivalent to
financial manager) hereby guarantee that the Financial Statements carried in this Report are
factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.Any plans for the future or other forward-looking statements mentioned in this Report and its
summary shall NOT be considered as absolute promises of the Company to investors.Therefore investors are reminded to exercise caution when making investment decisions.The Company has no interim dividend plan either in the form of cash or stock.This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions the Chinese versions
shall prevail.
2Konka Group Co. Ltd. Interim Report 2024
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 8
Part III Management Discussion and Analysis..........11
Part IV Corporate Governance.........................22
Part V Environmental and Social Responsibility...... 24
Part VI Significant Events.......................... 36
Part VII Share Changes and Shareholder Information...50
Part VIII Preferred Shares...........................54
Part IX Corporate Bonds..............................55
Part X Financial Statements..........................59
3Konka Group Co. Ltd. Interim Report 2024
Documents Available for Reference
1. The financial statements with the signatures and seals of the Company’s legal representative
Chief Financial Officer and head of the financial department;
2. The originals of all the Company’s documents and announcements disclosed to the public in the
Reporting Period; and
3. The documents above are available at the Secretariat of the Board.
4Konka Group Co. Ltd. Interim Report 2024
Definitions
Term Definition
The “Company” the “Group” “Konka Group” or Konka Group Co. Ltd. and its consolidated subsidiaries except where the
“we” context otherwise requires
Electronics Technology Shenzhen Konka Electronics Technology Co. Ltd.Haimen Konka Nantong Haimen Konka Smart Technology Co. Ltd.Chengdu Konka Smart Chengdu Konka Smart Technology Co. Ltd.Chengdu Konka Electronic Chengdu Konka Electronic Co. Ltd.Nantong Hongdin Nantong Hongdin Smart Technology Co. Ltd.Shenzhen Kangcheng Shenzhen Kangcheng Technology Innovation and Development Co. Ltd.Xiaojia Technology Xiaojia Technology Co. Ltd.Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co. Ltd.Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Resources Co. Ltd.Nanjing Konka Nanjing Konka Electronics Co. Ltd.Chuzhou Konka Chuzhou Konka Precision Intelligent Manufacturing Technology Co. Ltd.XingDa HongYe GuangDong XingDa HongYe Electronic Co. Ltd.Konka Circuit Shenzhen Konka Circuit Co. Ltd.Konka Flexible Electronic Suining Konka Flexible Electronic Technology Co. Ltd.Konka Hongye Electronics Suining Konka Hongye Electronics Co. Ltd.Boluo Precision Boluo Konka Precision Technology Co. Ltd.Boluo Konka Boluo Konka PCB Co. Ltd.Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co. Ltd.Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co. Ltd.Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co. Ltd.Frestec Refrigeration Henan Frestec Refrigeration Appliance Co. Ltd.Frestec Electrical Appliances Henan Frestec Electrical Appliances Co. Ltd.Frestec Household Appliances Henan Frestec Household Appliances Co. Ltd.Frestec Smart Home Henan Frestec Smart Home Technology Co. Ltd.Konka Investment Shenzhen Konka Investment Holdings Co. Ltd.Yibin Konka Technology Park Yibin Konka Technology Park Operation Co. Ltd.Konka Capital Shenzhen Konka Capital Equity Investment Management Co. Ltd.Konka Suiyong Konka Suiyong Investment (Shenzhen) Co. Ltd.Shengxing Industrial Shenzhen Konka Shengxing Industrial Co. Ltd.Zhitong Technology Shenzhen Konka Zhitong Technology Co. Ltd.Konka Electronic Material Konka Electronic Material Technology (Shenzhen) Co. Ltd.Beijing Konka Electronic Beijing Konka Electronic Co. Ltd.Tianjin Konka Tianjin Konka Technology Co. Ltd.Suining Konka Industrial Park Suining Konka Industrial Park Development Co. Ltd.Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co. Ltd.Shanghai Konka Shanghai Konka Industrial Co. Ltd.Yantai Kangjin Yantai Kangjin Technology Development Co. Ltd.Mobile Interconnection Shenzhen Konka Mobile Interconnection Technology Co. Ltd.Sichuan Konka Sichuan Konka Smart Terminal Technology Co. Ltd
Yibin Smart Yibin Konka Smart Technology Co. Ltd.
5Konka Group Co. Ltd. Interim Report 2024
Shenzhen KONSEMI Shenzhen KONSEMI Co. Ltd.Chongqing Konka Chongqing Konka Technology Development Co. Ltd.Kowin Memory (Shenzhen) Kowin Memory Technology (Shenzhen) Co. Limited
Kowin Memory (Hong Kong) Kowin Memory Technology (Hong Kong) Co. Limited
Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd.Konka Cross-border (Hebei) Konka Cross-border (Hebei) Technology Development Co. Ltd.Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co. Ltd.Konka Huazhong Konka Huazhong (Hunan) Technology Co. Ltd.Wankaida Shenzhen Wankaida Science and Technology Co. Ltd.Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.Suining Jiarun Property Suining Jiarun Property Co. Ltd.Anhui Konka Anhui Konka Electronic Co. Ltd.Kangzhi Trade Anhui Kangzhi Trade Co. Ltd.Telecommunication Technology Shenzhen Konka Telecommunications Technology Co. Ltd.Konka Mobility Konka Mobility Co. Limited
Dongguan Konka Dongguan Konka Electronic Co. Ltd.Suining Konka Smart Suining Konka Smart Technology Co. Ltd.Chongqing Optoelectronic Technology Chongqing Konka Optoelectronic Technology Co. Ltd.Yibin Kangrun Yibin Kangrun Environmental Technology Co. Ltd.Yibin Kangrun Medical Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd.Ningbo Khr Electric Appliance Ningbo Khr Electric Appliance Co. Ltd.Jiangxi Konka Jiangxi Konka New Material Technology Co. Ltd.Jiangxi High Transparent Substrate Jiangxi High Transparent Substrate Material Technology Co. Ltd.Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co. Ltd.Konka Huanjia Konka Huanjia Environmental Technology Co. Ltd.Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co. Ltd.Shanxi Konka Intelligent Shanxi Konka Intelligent Appliance Co. Ltd.Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co. Ltd.Jiaxin Technology Jiaxin Technology Co. Ltd.Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd.Konka Unifortune Shenzhen Konka Unifortune Technology Co. Ltd.Jiali International Jiali International (Hong Kong) Limited
Kangjiatong Sichuan Kangjiatong Technology Co. Ltd.Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co. Ltd.Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd.Hainan Konka Technology Hainan Konka Technology Co. Ltd.Konka Ventures Konka Ventures Development (Shenzhen) Co. Ltd.Yibin Konka Incubator Yibin Konka Incubator Management Co. Ltd.Yantai Konka Yantai Konka Healthcare Enterprise Service Co. Ltd.Chengdu Anren Chengdu Anren Konka Cultural and Creative Incubator Management Co. Ltd.Konka Enterprise Service Guiyang Konka Enterprise Service Co. Ltd.Konka Eco-Development Shenzhen Konka Eco-Development Investment Co. Ltd.Konka Europe Konka (Europe) Co. Ltd.Hong Kong Konka Hong Kong Konka Limited
Hongdin Trading Hongdin International Trading Limited
Konka North America Konka North America LLC
6Konka Group Co. Ltd. Interim Report 2024
Kanghao Technology Kanghao Technology Co. Ltd.Hongdin Invest Hongdin Invest Development Limited
Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co. Limited
Chain Kingdom Semiconductor (Shaoxing) Chain Kingdom Semiconductor (Shaoxing) Co. Ltd.Hongjet Hongjet (Hong Kong) Company Limited
Chongqing Xinyuan Semiconductor Chongqing Xinyuan Semiconductor Co. Ltd.Anlu Konka Anlu Konka Industry Operation Service Co. Ltd.Kanghong Dongsheng Shenzhen Kanghong Dongsheng Investment Partnership (Limited Partnership)
Guizhou Konka New Material Technology Guizhou Konka New Material Technology Co. Ltd.Guangdong Xinwei Guangdong Xinwei Semiconductor Co. Ltd.Guizhou Kanggui Material Technology Guizhou Kanggui Material Technology Co. Ltd.Nantong Kanghai Nantong Kanghai Technology Industry Development Co. Ltd.Chongqing Kangyiyun Chongqing Kangyiyun Business Operation Management Co. Ltd.Jiangxi Konka High-tech Park Jiangxi Konka High-tech Park Operation and Management Co. Ltd.Shangrao Konka Electronic Technology
Innovation Shangrao Konka Electronic Technology Innovation Co. Ltd.Guizhou Konka New Energy Guizhou Konka New Energy Material Technology Co. Ltd.Zhejiang Konka Electronic Zhejiang Konka Electronics Co. Ltd.Zhejiang Konka Technology Industry Zhejiang Konka Technology Industry Development Co. Ltd.Xi'an Konka Intelligent Xi'an Konka Intelligent Appliance Co. Ltd.Xi'an Konka Network Xi'an Konka Network Technology Co. Ltd.Xi'an Kanghong Technology Industry Xi'an Kanghong Technology Industry Development Co. Ltd.Xi'an Konka Intelligent Technology Xi'an Konka Intelligent Technology Development Co. Ltd.Anhui Konka Low Carbon Anhui Konka Low Carbon Technology Co. Ltd.Kanghong Xintong Shenzhen Kanghong Xintong Investment Partnership (Limited Partnership)
Songyang Industry Operation Songyang Konka Smart Industry Operation Management Co. Ltd.Kangyan Technology Shenzhen Kangyan Technology Co. Ltd.Konka Photovoltaic Technology Konka Photovoltaic Technology Co. Ltd.Songyang Konka Intelligent Songyang Konka Intelligent Technology Development Co. Ltd.Konka North China Konka North China (Tianjin) Technology Co. Ltd.Digital Technology Shenzhen Konka Digital Technology Development Co. Ltd.CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
CSRC Shenzhen The Shenzhen Bureau of the China Securities Regulatory Commission
RMB RMB’0000 RMB’00000000 Expressed in the Chinese currency of RMB expressed in tens of thousands ofRMB expressed in hundreds of millions of RMB
7Konka Group Co. Ltd. Interim Report 2024
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Konka Group-A Konka Group-B Stock code 000016 200016
Changed stock name (if any) N/A
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 康佳集团股份有限公司
Abbr. (if any) 康佳集团
Company name in English (if any) KONKA GROUP CO.LTD
Abbr. (if any) KONKA GROUP
Legal representative Cao Shiping
II Contact Information
Board Secretary Securities Representative
Name Li Chunlei Miao Leiqiang
Board Secretariat 24/F Konka R&D Center 28 Keji Board Secretariat 24/F Konka R&D Center 28 Keji
Address South Twelfth Road Science and Technology Park South Twelfth Road Science and Technology ParkYuehai Street Nanshan District Shenzhen Guangdong Yuehai Street Nanshan District Shenzhen Guangdong
Province China Province China
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
Indicate by tick mark whether any change occurred to the registered address office address and
their zip codes website address email address and other contact information of the Company in
the Reporting Period.□ Applicable √ Not applicable
No change occurred to the said information in the Reporting Period which can be found in the
2023 Annual Report.
2. Media for Information Disclosure and Place where this Report is Lodged
Indicate by tick mark whether any change occurred to the information disclosure media and the
place for lodging the Company’s periodic reports in the Reporting Period.□ Applicable √ Not applicable
The website of the stock exchange the media and other websites where the Company’s periodic
reports are disclosed as well as the place for lodging such reports did not change in the Reporting
Period. The said information can be found in the 2023 Annual Report.
8Konka Group Co. Ltd. Interim Report 2024
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.□ Applicable √ Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes √ No
H1 2024 H1 2023 Change (%)
Operating revenue (RMB) 5412530372.47 10472061171.94 -48.31%
Net profit attributable to the listed -1087581842.55 -193240232.33 -462.81%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before -1103078610.72 -891594370.41 -23.72%
exceptional gains and losses (RMB)
Net cash generated from/used in operating -439338365.13 -201550105.24 -117.98%
activities (RMB)
Basic earnings per share (RMB/share) -0.4517 -0.0803 -462.52%
Diluted earnings per share (RMB/share) -0.4517 -0.0803 -462.52%
Weighted average return on equity (%) -21.33% -2.55% -18.78%
30 June 2024 31 December 2023 Change (%)
Total assets (RMB) 34324017267.75 35824818212.66 -4.19%
Equity attributable to the listed company’s 4553306674.94 5644401184.65 -19.33%
shareholders (RMB)
V Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□Applicable √ Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□Applicable √ Not applicable
No such differences for the Reporting Period.VI Exceptional Gains and Losses
√ Applicable □ Not applicable
9Konka Group Co. Ltd. Interim Report 2024
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 837373.68
Government grants recognised in current profit or loss (exclusive of those that are closely
related to the Company's normal business operations and given in accordance with defined 55171603.63
criteria and in compliance with government policies and 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 -165919193.12
portion of hedges that arise in the Company’s ordinary course of business)
Gain or loss on loan entrustments 63154861.04
Non-operating income and expense other than the above 11832131.66
Other gains and losses that meet the definition of exceptional gain/loss 30000710.67
Less: Income tax effects -29890840.20
Non-controlling interests effects (net of tax) 9471559.59
Total 15496768.17
Particulars about other gains and losses that meet the definition of exceptional gain/loss:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
Reversal of the In March 2024 a majority-owned subsidiary of the Company in Dalian entered the
recognised bankruptcy and liquidation procedure according to the decision by a court of law. An
excess losses in 31971388.49 administrator appointed by the court has taken over the relevant information and physical
the previous objects of the subsidiary and the Company no longer exercises control over the
periods subsidiary and has thus reversed the recognised excess losses in the previous periods.Gain on the de-
recognition of
financial assets -1970677.82 Gain on the de-recognition of notes receivable
measured at
amortised cost
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Exceptional Gain/Loss Items:
√ Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
Tax rebates on 1596783.94 Government subsidies given in the Company’s ordinary course of business at fixed
software quotas or amounts as per government’s uniform standards
10Konka Group Co. Ltd. Interim Report 2024
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
The Company is principally engaged in consumer electronics semiconductor and memory chip
PCB etc. More information is provided below:
(I) The 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 sales of the Company’s colour TVs are realized mainly through B2B (Business-to-
Business) and B2C (Business-to-Consumer) with its branch companies business departments
and after-sales maintenance points operating across the country. And the Company profits from
the margins between the costs and the selling prices of its colour TVs.As for selling its colour TVs abroad the Company mainly relies on B2B. Its colour 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 colour TVs.According to statistics from AVC the retail sales in the domestic color TV market totaled 13.51
million units in the first half of 2024 down 7.9% year on year. In the future with the integration
of emerging technologies such as 5G the Internet of Things artificial intelligence and new
displays with consumer electronics and the introduction of consumption policies the color TV
industry's structure will continue to be upgraded.
2. The white goods business
The white goods produced by the Company mainly include refrigerators washing machines air
conditioners freezers etc. which are sold through B2B and B2C mainly to the domestic market.And the Company profits from the margins between the costs and the selling prices of its white
goods. The Company strengthened the foundation of our white goods brands through the acquisition
of the Frestec brand. Meanwhile the establishment of the Ningbo A/C production base as a joint
venture has helped the Company build its own A/C manufacturing capability. The weakness in the
front-loading washing machine technology has been overcome by the acquisition of Beko (Front-
loading Washing Machine) China Factory. In addition the Company went on a new path of
exploring the dishwasher world by setting up Xi’an Smart Appliances Park. The Company also
optimized the internal R&D production procurement sales and services processes integrated the
external channel resources to enable channel sharing between the upstream procurement processes
11Konka Group Co. Ltd. Interim Report 2024
and downstream sales processes and continuously improved the product sales structure and
competitiveness of the white goods business.According to statistics from AVC the demand in the domestic air conditioner market was under
pressure. The domestic air conditioner sales from all channels in the first half of 2024 totaled
RMB111.4 billion down 14.5% year on year. Regarding refrigerators due to the trade-in policy
people were gradually making purchases to meet their demand and the domestic refrigerator market
was stable on the whole. The domestic refrigerator sales from all channels in the first half of 2024
totaled RMB65.2 billion up 0.4% year on year. As for washing machines the demand in the
domestic washing machine market rebounded slightly but the average price continuously fell. The
domestic washing machine (excluding dry cleaning machine) sales from all channels in the first half
of 2024 totaled RMB42.7 billion up 1.8% year on year. With the recovery of demand for trade-in
and the upgrade of people's quality of life steady development and product upgrade will become
the main features of the white goods market.(II) The semiconductor and memory chip business
Currently the Company is engaged in memory chips optoelectronics etc. In memory chips the
Company primarily engages in packagingtesting and sales. In the field of optoelectronics the
Company mainly focused on three business segments i.e. micro LED and mini LED chips mass
transfer and display and promoted the transformation of its optoelectronics business from
technology R&D to industrialization. After industrialization the operating profit will derive from
the difference between product cost and selling price.The semiconductor industry is a strategic fundamental and leading industry that supports economic
and social development and safeguards national security. Among them semiconductor storage is the
largest subdivision in the semiconductor industry in recent years. China has also accelerated in
boosting the production capacity of semiconductor storage in recent years. It is expected that the
self-sufficiency rate will continue to increase.Micro LED and Mini LED are the prevailing trend and development direction of future display
technology. The industrial chain is divided into four main links: upstream chip manufacturing and
mass transfer midstream panel manufacturing and downstream complete machine application. The
Micro LED and Mini LED have wide industrial application and a broad market.(III) The PCB business
The Company's PCB business mainly involved dealing in metal substrate products thick copper
products high-density multi-layer and HDI (High Density Interconnect) products and rigid-flex
PCB products. The Company adopted a B2B business model and its products were concentrated on
four major electronic fields namely new energy automotive electronics communications and data
centers and new consumer electronics. The Company made profits from the product price
difference.
12Konka Group Co. Ltd. Interim Report 2024
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 ability the Company has
carried out intelligent upgrading of manufacturing bases in Anhui Dongguan Suining Xinxiang
etc. of which the Anhui Konka plant has been awarded the title of "National Intelligent
Manufacturing Demonstration Factory" with an advanced intelligent manufacturing level in theindustry. It has developed a three-tier R&D system of “Research institute+key labs+productdevelopment centers” established artificial intelligence internet of things comprehensive laboratory
and 5G Ultra HD laboratory with major universities or scientific research institutions established
academician workstation and built a technology research alliance matching the industrial layout
with nearly 100 core technologies and about 1500 R&D talents. The Company has introduced
around 100 experts on the 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. Regarding offline channels the Company has 48
branches more than 300 offices and more than 5000 after-sales service shops across China and
the marketing and service network is all over the country; as for online channels the Company has
settled in Tmall JD Suning VIPshop Pinduoduo and other mainstream e-commerce platforms to
develop live e-commerce business and seek a new growth pole for business development; overseas
channel the company The Company's business covers Latin America Europe Asia Pacific and
other countries and regions with a sound marketing network. In terms of human resources the
Company boasts a leadership team of many years of management and industry experience as well
as a high quality execution team.III Analysis of Main Businesses
(I) Overview
During the Reporting Period the Company followed the new development strategy of "One Axis
Two Wheels and Three Growth Drivers" and adhered to long-term value-oriented principles as well
as the operational strategy of focusing on the long term and improving specialization to become
stronger. It also deepened integration for specialization and implemented lean management to
promote high-quality development. During the Reporting Period the Company promoted business
restructuring by optimizing some business lines which did not produce a good synergic effect with
13Konka Group Co. Ltd. Interim Report 2024
the main business and had a low gross margin. As a result the Company's operating revenue
declined year on year. Affected by the following factors the Company's net profit attributable to its
shareholders for the first half of 2024 was negative:
1. In the first half of 2024 the Company actively adjusted its sales strategy for its domestic color
TV business and optimized the product structure. Despite the year-over-year increase in the revenue
and gross profit and the gradual improvement of the operations the Company's color TV business
still suffered a deficit due to the limited room for reduction of necessary expenses and the
continuously intensifying competition in the industry.
2. In the first half of 2024 due to the changes in the prices of the trading financial assets held by the
Company the Company's net loss on changes in fair value was approximately RMB-175 million
which affected the net profit attributable to its shareholders.
3. In the first half of 2024 based on the principle of prudence the Company set aside provisions for
asset impairment of approximately RMB255 million in accordance with accounting policies and
estimates resulting in a decrease in profit.
4. In the first half of 2024 the Company's semiconductor business was still at the initial phase of
industrialization. In spite of the heavy investment efficient large-scale production had not been
achieved which affected the Company's overall operating profit.
5. The Company focused on two lines of business "consumer electronics + semiconductor" and
with the industrial development needs taken into account strategically reduced the investment
intensity hence a year-on-year decline in related income.(II) Year-on-year changes in key financial data:
Unit: RMB
H1 2024 H1 2023 Change(%) Main reason for change
Operating
revenue 5412530372.47 10472061171.94 -48.31%
The Company took the initiative to
optimise the industry trading business
which had a lower gross profit level
Cost of sales 5009969615.02 10079343784.11 -50.29% resulting in a decline in its operating
revenue.Selling expense 495376454.26 558536665.53 -11.31%
Administrative
expense 315946020.02 390244567.77 -19.04%
Finance costs 280912375.66 199075624.50 41.11% Year-on-year decrease in exchangegains in the Reporting Period
Income tax -51275843.13 -16710667.58 -206.84% Year-on-year decrease in net profit inexpense the Reporting Period
R&D investments 214578026.81 237033893.11 -9.47%
Net cash A lower percentage of cash payments
generated for commodities and services in total
from/used in -439338365.13 -201550105.24 -117.98% sales revenue in the Reporting Period
operating compared with the same period of last
activities year
Net cash
generated Decreased cash proceeds from
from/used in -315227824.59 433888761.35 -172.65% disinvestment in the Reporting Period
investing compared with the same period of last
activities year
14Konka Group Co. Ltd. Interim Report 2024
Net cash
generated Increased cash repayment of
from/used in -548853897.53 291683622.46 -288.17% borrowings in the Reporting Period
financing compared with the same period of last
activities year
Net increase in
cash and cash -1296409839.47 568156645.67 -328.18%
equivalents
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such changes.(III) Breakdown of operating revenue:
Unit: RMB
H1 2024 H1 2023
As % of total As % of total Change
Operating revenue operating revenue Operating revenue operating revenue (%)
(%)(%)
Total 5412530372.47 100% 10472061171.94 100% -48.31%
By operating division
Consumer
electronics 4754524671.36 87.84% 4773146814.81 45.58% -0.39%
Semiconductor
and Memory chipr 82962696.19 1.53% 2036903764.93 19.45% -95.93%
Other 575043004.92 10.63% 3662010592.20 34.97% -84.30%
By product category
White goods 2247070655.48 41.52% 2285781923.95 21.83% -1.69%
Color TVs 2115790827.61 39.09% 1919054194.60 18.33% 10.25%
PCB 231558538.52 4.28% 245209214.94 2.34% -5.57%
Semiconductor
and memory chipr 82962696.19 1.53% 2036903764.93 19.45% -95.93%
Other 735147654.67 13.58% 3985112073.52 38.05% -81.55%
By operating segment
Domestic 1366369132.78 25.24% 3900990088.37 37.25% -64.97%
Overseas 4046161239.69 74.76% 6571071083.57 62.75% -38.42%
(IV) Operating division product category or operating segment contributing over 10% of
operating revenue or operating profit:
√ Applicable □ Not applicable
Unit: RMB
Gross YoY change YoY change in YoY change in
Operating revenue Cost of sales profit in operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Consumer
electronics 4754524671.36 4447363370.44 6.46% -0.39% -1.32% 0.88%
By product category
White goods 2247070655.48 2014585214.49 10.35% -1.69% -0.29% -1.26%
Color TVs 2115790827.61 2069113672.93 2.21% 10.25% 6.07% 3.86%
By operating segment
Domestic 4046161239.69 3696751585.18 8.64% -38.42% -40.94% 3.89%
Overseas 1366369132.78 1313218029.84 3.89% -64.97% -65.62% 1.82%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
15Konka Group Co. Ltd. Interim Report 2024
□Applicable √ Not applicable
IVAnalysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of total profit Main resource/reason Recurrent or not
Return on investment 5047444.22 -0.38% Not recurrent
Gain/loss on changes
in fair value -179800523.76 13.50%
Changes in the fair value of
financial asset investments Not recurrent
Asset impairments -255092300.13 19.15% Impairments of receivablesand inventories Not recurrent
Increased gains that were not
Non-operating income 15773523.89 -1.18% directly related to the Not recurrent
Company’s routine operations
Non-operating expense 6155804.84 -0.46% Not recurrent
V Analysis of Assets and Liabilities
1. Material Changes in Asset Composition
Unit: RMB
30 June 2024 31 December 2023 Change in Reason
As % of total As % of total percentage
for
Amount materialassets Amount assets (%) change
Monetary
assets 5514370579.43 16.07% 6506359577.02 18.16% -2.09%
Accounts
receivable 1856961440.23 5.41% 1726545973.08 4.82% 0.59%
Contract assets 2712594.37 0.01% 2190385.93 0.01% 0.00%
Inventories 3404537028.08 9.92% 3249897700.98 9.07% 0.85%
Investment
property 1516938003.43 4.42% 1470226723.87 4.10% 0.32%
Long-term
equity 5500299082.95 16.02% 5566483863.29 15.54% 0.48%
investments
Fixed assets 5050425327.42 14.71% 5218297745.16 14.57% 0.14%
Construction in
progress 844964613.42 2.46% 860899498.68 2.40% 0.06%
Right-of-use
assets 199746862.53 0.58% 197054423.17 0.55% 0.03%
Short-term
borrowings 6510087630.95 18.97% 6390592056.27 17.84% 1.13%
Contract
liabilities 326016727.91 0.95% 527975160.12 1.47% -0.52%
Long-term
borrowings 7205788337.63 20.99% 7779150079.88 21.71% -0.72%
Lease liabilities 165941212.56 0.48% 160218818.92 0.45% 0.03%
2. Major Assets Overseas
□ Applicable √ Not applicable
3. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
fair-value fair-value Impairment
Item Beginning changes in changes allowance for
Purchased in Sold in the Other Ending
amount the Reporting charged to the Reporting
the Reporting Reporting changes amount
Period equity Period
Period Period
Financial assets
16Konka Group Co. Ltd. Interim Report 2024
1. Trading
financial
assets -
(derivative 469636700. 174699491. 294937209.financial 78 47 31
assets
excluded)
4.
Investments
in other 23841337.1 23841337.1
equity 6 6
instruments
5. Other non-
current 200967639 23742683.6 198590847
financial 8.00 -25240.65 2 3.73
assets
Subtotal of
financial 250315443
-
174724732.23742683.6230468702
assets 5.94 12 2 0.20
Other 173396326. 203279738. 173396326. 203279738.14 30 14 30
Total of the 267655076 -174724732. 203279738. 197139009. 250796675above 2.08 12 30 76 8.50
Financial
liabilities 0.00 0.00 0.00 0.00 0.00
Other changes
Unit: RMB
Gain/loss on Cumulative Impairment
Beginning fair-value fair-value allowance Purchased in Sold in theItem amount changes in the changes for the the Reporting Reporting
Other
changes Ending amountReporting charged to Reporting Period Period
Period equity Period
Accounts
receivable 173396326.14 203279738.30173396326.14 203279738.30
financing
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
4. Restricted Asset Rights as at the Period-End
Item Ending carrying value(RMB) Reason for restriction
Of which RMB439611924.45 is security deposits put in pledge for loans or the
Monetary assets 1135996069.35issuance of bank acceptance bills; RMB664.24 is in the fiscal custody account;RMB469680000 is term deposits that cannot be withdrawn in advance; and
RMB226703480.66 is restricted for other reasons.Accounts
receivable 1.059896.50Pledge loan
Notes
receivable 135131288.11Pledged to issue bills
Inventories 477577793.08Mortgage loan
Investment
property 643316578.58Mortgage loan
Fixed assets 1599 804943.86Mortgage loan finance lease and former shareholder guarantee
Intangible
assets 602911241.32Mortgage loan finance lease and former shareholder guarantee
Construction in
progress 46810437.16Mortgage loan
Total 4642 608247.96
VI Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
17Konka Group Co. Ltd. Interim Report 2024
Total investment amount in the Total investment amount in the same
Reporting Period (RMB) period of last year (RMB) Change
383427125.49541154096.54-29.15%
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
Accumulati P Est Accumul
Reason
Fixed Input im ative for notInvest Indust
ment assets ry amount in
ve actual
input Capital
r ate realized meeting Disclosure Disclosu
Item metho invest the resource
o d revenues the date (if re index
d ment
involv Reporting amount as s ged of the re rev as of the
schedule any) (if any)
or not Period andperiod-end ss en period-ues end expectedrevenues
Suining Konka Electr
Electronic Self- Yes onic 3720502 59813197 Self-Technology build industr 8.90 2.66 funded N/A 2018-10-17
Industrial Park y
Chongqing Self- http://w
Konka Electr
Semiconductor Self- Yes onic 4676255 70602069
and ww.cnin
Photoelectric build industr 6.54 6.70
bank N/A 2019-06-14
loan- fo.com.c
Industrial Park y funded n/new/in
Self- dex
Frestec Electr
Refrigeration Self- Yes onic 6812204 52756760
and
build industr 6.98 8.05 bank N/A 2020-07-21Park y loan-funded
152089618317202
Total -- -- -- 32.42 77.41 -- -- -- -- --
The main body of the Frestec Refrigeration Park has been basically completed. The Suining Konka
Electronic Technology Industrial Park is under construction. Regarding the Semiconductor
Photoelectric Research Institute of Chongqing Konka Semiconductor Photoelectric Industrial Park
the infrastructure of the first phase has been completed and accepted with the remaining
infrastructure construction ongoing.
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Acco Accumu
Co untin Gain/Loss lated Sour
Variety de Initial Purcha Gain/lo
of of Name
g Beginn on fair fair Sold in ce of
of investment meas ing value value
sed in Reporti ss in Ending Accounti inves
securit sec security cost urem carryin changes in changes
Report ng Reporti carryin ng title tmen
y urit ent g value Reporting charged ingPeriod Period
ng g value t
y meth Period to Period funds
od equity
Domest Fair
46963 - 29493 Trading Self-ic/Forei 003 Chutian 9748974 value 6700.7 1746994 0.00 0.00 0.00 0.00 7209.3 financial fund
gn 040 Dragon 30.42 meth 8 91.47 1
stock od assets ed
Other securities
investments held at the 0.00 -- 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -- --
period-end
9748974 46963 - 29493Total -- 6700.7 1746994 0.00 0.00 0.00 0.00 7209.3 -- --
30.42891.471
Disclosure date of announcement on board’s approving 4 April 2023
18Konka Group Co. Ltd. Interim Report 2024
securities investment (if any)
Disclosure date of announcement on shareholders’ meeting
N/A
approving securities investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: RMB’0000
Total
Proporti Raised
Total Raised
Total on of Funds
Net Raised Funds Uses and
Method Total Raised Total Total Remaini
Year of Total Amount Funds Used for Flows of
for Raised Funds Raised Unused ng
Fundrais Raised of Used in Altered Unused
Fundrais Funds Used for Funds Raised Unused
ing Funds Raised the Purposes Raised
ing Used Altered Used for Funds for Over
Funds Reportin in the Funds
Purposes Altered Two
g Period Reportin
Purposes Years
g Period
Corporat
e bonds Not
2024 non- 150000 149520 150000 150000 0 0 0.00% 0 applicabl 0
publicly e
offered
Corporat
e bonds Not
2024 non- 40000 39872 0 0 0 0 0.00% 0 applicabl 0
publicly e
offered
Corporat
e bonds Not
2024 non- 40000 39872 0 0 0 0 0.00% 0 applicabl 0
publicly e
offered
Total -- 230000 229264 150000 150000 0 0 0.00% 0 -- 0
Statement on the overall use of the raised funds
1. Konka Group Co. Ltd.'s non-public offering of corporate bonds (Tranche I) to professional investors in 2024 was completed on 29 January
2024 and the funds raised during the Reporting Period have been used up. The Company has used the raised funds for the purposes specified
in the bond prospectus and the accounts dedicated to the raised funds have been properly functioning;
2. Konka Group Co. Ltd.'s non-public offering of corporate bonds (Tranche II) (Type I) to professional investors in 2024 was completed on
18 March 2024. The raised funds were not used during the Reporting Period and have been used up as at the date of approval of the
Company's semi-annual report. The Company has used the raised funds for the purposes specified in the bond prospectus and the accounts
dedicated to the raised funds have been properly functioning;
3. Konka Group Co. Ltd.'s non-public offering of corporate bonds (Tranche II) (Type II) to professional investors in 2024 was completed on
18 March 2024. The raised funds were not used during the Reporting Period and have been used up as at the date of approval of the
Company's semi-annual report. The Company has used the raised funds for the purposes specified in the bond prospectus and the accounts
dedicated to the raised funds have been properly functioning.
(2) Projects for which the Company has undertaken to use with the raised funds
□ Applicable √ Not applicable
19Konka Group Co. Ltd. Interim Report 2024
(3) Changes in the projects for which with the raised funds shall be used.
□ Applicable √ Not applicable
No such cases in the Reporting Period.VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable √ Not applicable
VIII Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net
profit:
Unit: RMB
Relationshi
Principal Registered Operating Operating
Name p with the Total assets Net assets Net profit
activity capital revenue profit
Company
Shenzhen Manufactur
Konka Subsidiary ing and RMB1000 66545445 46809639 14358024. 4286739.8 3418686.0Circuit Co. sale of 000000 7.25 4.68 49 6 9
Ltd. electronics
Hong Kong Export &
Konka Co. Subsidiary import of HKD5000 30903708 44590727 10163461 15140702. 11972179.Ltd. electronics 00 99.49 9.34 08.61 62 59
Shenzhen
Konka
Telecomm Manufactur
unictions Subsidiary ing and RMB4800 49160699 27906625 62495182. 5793265.0 5793265.0
Technolog sale of 00000 4.09 3.69 96 1 1
y Company electronics
Limited
Subsidiaries obtained or disposed of in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or Effects on overall operations and
Subsidiary
disposed in the Reporting Period operating performance
Shenzhen Waikaida Technology Co. Ltd. De-registered For better allocation of assets
Chengdu Anren Konka Cultural and Creative
Incubator Management Co. Ltd. De-registered For better allocation of assets
Shenzhen Konka Intelligent Manufacturing
Technology Co. Ltd. De-registered For better allocation of assets
Information about principal subsidiaries and joint stock companies:
None
IX Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
20Konka Group Co. Ltd. Interim Report 2024
X Risks Facing the Company and Countermeasures
In regard to the consumer electronics business due to the increasingly fierce market competition
operating pressure is mounting. With respect to the semiconductor business economies of scale
have not been gained despite the Company’s breakthroughs in core technologies as it is still at
the initial phase of industrialisation. In response to the above risks the Company will focus on
main business development promote lean management optimise asset allocation accelerate to
expand the scale of the semiconductor business and effectively strengthen profitability.Consumer electronics business: For its color TV business the Company will closely follow the
market development trends and supply chain price trends study and judge consumers' demand in
advance and promote the continuous iteration and upgrading of the product system through
institutionalization and systematization; it will also create exquisite products enhance its
profitability through quality products enhance its brand influence and support improvement of
business operations. As regards the white goods business the Company will strengthen its user-
centric mindset accelerate the transformation of its product structure drive brand value with
high-end products and fully achieve synergy among all types of products and all links in the
chain during its operations while focusing on channel innovation: For the domestic business it
will vigorously develop interest-based e-commerce; as for export and OEM production it will
deeply tap the markets in which it has advantages in the market grain-producing area fill market
voids and continuously improve its production scale and profitability.In regard to the semiconductor business: first the Company needs to maintain its technology
leadership and drive the industrialisation of Micro LEDs in a market-oriented manner. Meanwhile
difficulties in chip and mass transfer technologies should continue to be tackled based on
customer demand. Second the Company will focus on sales to large customers to achieve scale
sales of commercial Mini LED products.XI Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed an action plan for "dual improvement of quality and return".□ Yes √ No
21Konka Group Co. Ltd. Interim Report 2024
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meetings Convened during the Reporting Period
Investor
Meeting Type participa Date of the Date of disclosure Resolutions of the meeting
tion ratio meeting
st
The 1st Extraordinary Extraordinar Resolutions of the 1
General Meeting of 2024 y General
26 February
23.81%
Meeting 2024
27 February 2024 Extraordinary General
Meeting of 2024
nd
The 2nd Extraordinary Extraordinar Resolutions of the 2
General Meeting of 2024 y General 1.98% 18 March 2024 19 March 2024 Extraordinary GeneralMeeting Meeting of 2024
The 2023 Annual Annual
General Meeting General 23.48% 24 June 2024 25 June 2024
Resolutions of the 2023
Meeting Annual General Meeting
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders
with Resumed Voting Rights
□ Applicable √ Not applicable
II Change of Directors Supervisors and Senior Management
□ Applicable √ Not applicable
No such cases in the Reporting Period. For details please refer to the Annual Report 2023.On 26 August 2024 Mr. Liu Fengxi resigned from the positions of Chairman of the 10th Board of
Directors Director and member of the Strategy Committee of the Board of Directors of the
Company due to work arrangement and Mr. Yao Wei resigned from the position of Non-
Independent Director of the 10th Board of Directors of the Company as well as from his position in
the relevant Specialized Committee of the Board of Directors due to work arrangement. At the 31st
Meeting of the 10th Board of Directors of the Company held on 27 August 2024 Mr. Zhou Bin the
Secretary of the Party Committee and Director of the Company was elected as the Vice Chairman
(presiding) of the 10th Board of Directors of the Company to perform the duties of the Chairman of
the Board of Directors and preside over the work of the Board of Directors of the Company.On 26 August 2024 Mr. Zhou Bin resigned from the position of President of the Company due to
work arrangement. At the 31st Meeting of the 10th Board of Directors of the Company held on 27
August 2024 Mr. Cao Shiping the former Executive Vice President was appointed as the
President of the Company with a term of office consistent with the term of office of the current
senior management.On 26 August 2024 Mr. Li Chunlei resigned from the position of Chief Financial Officer of the
Company due to work arrangement. At the 31st Meeting of the 10th Board of Directors of the
Company held on 27 August 2024 Mr. Nie Yong was appointed as the Chief Financial Officer of
the Company with a term of office consistent with the term of office of the current senior
management.
22Konka Group Co. Ltd. Interim Report 2024
On 26 August 2024 Mr. Wu Yongjun resigned from his position of Secretary of the Board of the
Company due to work arrangement. At the 31st Meeting of the 10th Board of Directors of the
Company held on 27 August 2024 Mr. Li Chunlei the former Chief Financial Officer was
appointed as the Secretary of the Board of the Company with a term of office consistent with the
term of office of the current senior management.On 26 August 2024 Mr. Li Hongtao resigned his position of Vice President of the Company due to
personal reasons.III Interim Dividend Plan
□ Applicable √ Not applicable
The Company has no interim dividend plan either in the form of cash or stock.IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
23Konka Group Co. Ltd. Interim Report 2024
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major
polluter by the environmental protection authorities.√ Yes □ No
Policies and industry standards pertaining to environmental protection
The Company abides by environmental protection laws and regulations such as the Environmental
Protection Law of the People’s Republic of China Water Pollution Prevention and Control Law of
the People’s Republic of China Air Pollution Prevention and Control Law of the People’s Republic
of China Noise Pollution Prevention and Control Law of the People’s Republic of China Solid
Waste Pollution Prevention and Control Law of the People’s Republic of China and others. The
water pollutant discharge standards include the Emission Standard of Water Pollutants for
Electroplating DB44/1597-2015 and the Water Pollutant Discharge Limit Standard of Guangdong
Province DB44/26-2001. The air pollutant emission standards include the Emission Standard of
Volatile Organic Compounds for Printing Industry DB44/815-2010 Emission Standard of
Electroplating Pollutants GB21900-2008 Emission Standard of Odorous Pollutants GB14554-93
Emission Control Standard of Volatile Organic Compounds for Unorganized Emissions GB37822-
2019 Technical Specification for the Setting of Hazardous Waste Identification Signs HJ1276-2022
and Pollution Control Standards for Hazardous Waste Storage GB18597-2023.Status of Environmental Protection Administrative License
1. XingDa HongYe
XingDa HongYe received approval from the Zhongshan Environmental Protection Bureau to
establish and construct its facility in 2004 (ZH.H.J. [2004] No. 61) followed by subsequent
approvals under ZH.H.J.D. [2008] 06250 and ZH.H.J.D. [2010] 04469 in 2008 and 2010
respectively. After the original project of XingDa HongYe was put into production it underwent
two acceptance stages: the first stage in 2008 (H.Y [2008] 02) and the second stage in 2012
(ZH.H.Y. Report [2012] 000092).Xingda Hongye enlisted the services of the Zhongshan Environmental Protection Science Research
Institute in December 2012 to perform an environmental impact evaluation for their proposed
technological upgrade and expansion initiative. Following this on 31 December 2012 the
Environmental Protection Bureau of Zhongshan City granted No. ZH.H.J.SH. (2012) 115 Approval
24Konka Group Co. Ltd. Interim Report 2024
on the Environmental Impact Assessment Report for Technological Upgrade and Expansion
Program of GuangDong XingDa HongYe Electronic Co. Ltd. The scheme allowed for an increased
production of six-layer circuit boards eight-layer and above circuit boards and HDI boards while
reducing the production of single-sided circuit boards. After the completion of the technological
upgrade and expansion the production capacity was expected to reach a total of 200000 square
meters for single-sided circuit boards per year 250000 square meters for double-sided circuit
boards per year 300000 square meters for four-layer circuit boards per year 200000 square meters
for six-layer circuit boards per year 150000 square meters for eight-layer and above circuit boards
per year and 100000 square meters for HDI boards per year. The technical renovation and
expansion project maintained the original plating equipment and process unchanged and added a
browning process to the existing production process. The additional plating capacity was all
outsourced. The technical renovation and expansion project began construction in 2013 was
completed in January 2018 and was commissioned from 10 February to 8 July 2018. The
construction of the expansion project met the requirements of the environmental impact report
approval and the conditions for environmental protection acceptance of the completed construction
project. In 2021 the national pollutant discharge permit of XingDa HongYe was renewed/replaced
with certificate number 91442000768405216J001P. In 2022 the national pollutant discharge permit
was changed with certificate number 91442000768405216J001P. In 2023 the national pollutant
discharge permit was changed with certificate number 91442000768405216J001P
2. Boluo Konka and Boluo Konka Precision
Boluo Konka Precision Technology Co. Ltd. was approved by the Huizhou Environmental
Protection Bureau in 2000 (H.S.H.J. [2000] No.23) and began production the same year. Its
pollution discharge permit number is 91441322721121283N001U.Boluo Konka enlisted the services of Huizhou Environmental Science Research Institute in January
2007 to carry out an environmental impact assessment for its expansion project. No. H.SH.H.J.
[2007] J32 Approval on Environmental Impact Report for Boluo Konka’s Double-sided and
Multilayer Board Project was issued by the Environmental Protection Bureau of Huizhou City on 8
February 2007. The approved expansion project included the installation of electroplating
equipment and processes allowing for an increase in production capacity to 1 million square meters
for single-sided circuit boards per year and 650000 square meters for double-sided and multilayer
circuit boards per year. Upon completion the project underwent an environmental protection
acceptance inspection satisfying the requirements of the environmental impact assessment approval.The company also obtained a pollutant discharge permit in the same year and underwent a name
change to Boluo Konka Precision Technology Co. Ltd. In 2020 the company received a national
pollutant discharge permit bearing certificate number 91441322799316208F001V. Boluo Konka
25Konka Group Co. Ltd. Interim Report 2024
Precision will produce 1.65 million square meters per year of double-sided and multilayer circuit
boards upon the Department of Ecology and Environment of Guangdong Province's approval of the
Report on the Environmental Impact of the Circuit Boards Expansion Project with an Annual
Capacity of 1 million square meters (Y.H.SH. [2023] No. 124) in June 2023.The regulations for industrial emissions and the particular requirements for controlling pollutant
emissions those are associated with production and operational activities.T
Num
Distrib ot Exc
ber
Name Type of Way ution al essi
Name of of Discharge Discharge Approved
of major of of di ve
major disch concentration/inte standards total
pollut polluta disch dischar sc disc
pollutants arge nsity implemented discharge
er nts arge ge ha harg
outle
outlets rg e
ts
e
PH total
PH 6-9; total
copper Total
copper≤0.3mg/L;
COD discharge
COD≤50mg/L;
ammonia of major
ammonia
nitrogen pollutants:
nitrogen≤8mg/L;
total COD
total
nitrogen Disch 49 19.061250
Main nitrogen≤15mg/L
total arge 7 tons/year;
Pollutio dischar ; total
phosphor of GB 21900-2008 83 ammonia ni
Xing n ge phosphorus≤0.5m
us total statio Discharge 5 trogen
Da sources outlet g/L; total Non
cyanide nary 1 Standard For to 3.0498
Hong of of the cyanide≤0.2mg/L e
total pollut Pollutants From ns tons/year;
Ye waste waste ; total
nickel ion Electroplating /y total
water water nickel≤0.1mg/L;
total iron sourc ea nitrogen
station total iron≤2mg/L;
total es r 32.9792
total
aluminum tons/year;
aluminum≤2mg/L
total
;
petroleum phosphorus
petroleum≤2mg/L
0.2082
; suspended
suspende tons/year
solids≤30mg/L
d solids
Sulfuric sulfuric acid Emission Standard 2 Total
Three
acid fume≤30mg/m3; for Electroplating 98 discharge:
on the
fume nitrogen Pollutants 6 29865600
Disch roof ofhydrogen oxide≤200mg/m3 GB21900-2008 56 00 standard
chloride arge
plant
; hydrogen Air Emission 0 cube/year
of 1 ten
Xing Waste formalde chloride≤30mg/m Limits Table 5 00 (note: the
statio on the
Da gas hyde 3; hydrogen Emission standard 0 total
nary 14 roof of
Non
Hong polluta hydrogen cyanide≤0.5mg/m of Volatile st discharge isplant 2 e
Ye nts cyanide
pollut 3; Organic an not stated
and
nitrogen ion TVOC≤90mg/m3 Compounds for da in the latest
oxide sourc
one on
; Printing Industry rd version of
the
ammonia es benzene≤1mg/m3 DB44/815-2010; cu national
roof of
benzene ; Guangdong Air be discharge
the
toluene+x toluene+xylene≤1 Pollutant Emission /y permit in
cantee
ylene 5mg/m3; tin and Standard ea 2021; two
26Konka Group Co. Ltd. Interim Report 2024
TVOC n its DB44/27-2001 the r exhaust
tin and its compounds≤8.5m Second Level towers
compoun g/m3; Standard in the were added
ds PM(dust)≤120mg Second Period in 2021;
PM(dust) /m3 Emission standard calculated
for Odor Pollutants based on
(GB 14554-1993) air volume
Table 2 Standard in
environme
ntal impact
assessment
)
1. Discharge
standard of
discharge permit:
Discharge
Standard of
Electroplating
31
Water Pollutant for
1. Emission 8
Electroplating
standard for 30
DB44/1597-2015
pollution 0
Table 1 Pearl
discharge to
River Delta
certificate: ns
Discharge COD is
copper≤0.5mg/L; /y
Standard; Water 19.2
COD≤80mg/L; ea
Pollutant tons/year;
ammonia r
PH Discharge Limit ammonia
Disch nitrogen≤10mg/L N
copper Main Standard of nitrogen is
Boluo arge ; total ot
Pollutio COD dischar Guangdong 2.4
Konka of nitrogen≤20mg/L e:
n ammonia ge Province tons/year;
and statio ; total ac
sources nitrogen outlet DB44/26-2001; 2. total Non
Boluo nary 1 phosphorus≤0.5m co
of total of the Local discharge nitrogen is e
Konka pollut g/L; 2. local rd
waste nitrogen waste standard: BFBH 4.8
Precis ion emission in
water total water [2019] No. 58 tons/year.ion sourc standard: g
phosphor station Document: COD Note:
es copper≤0.5mg /L; to
us ammonia nitrogen according
COD≤30mg/L; di
total phosphorus to the
ammonia sc
based on discharge
nitrogen≤1.5mg/ ha
"Environmental certificate
L; total rg
Quality Standards
nitrogen≤10mg/L e
for Surface Water
; total pe
GB3838-2002 "
phosphorus≤0.3m r
Category IV water
g/L mi
standard the total
t
nitrogen discharge
reaches 50% of
discharge limit
requirement of the
corresponding
industry
Boluo Sulfuric Disch Six on sulfuric acid Emission Standard The total
Konka Waste acid arge the fume≤30mg/m3 for Electroplating discharge is Non
and gas poll fume of 20 roof of ；nitrogen Pollutants / not stated e
Boluo utants hydrogen statio plant oxide≤200mg/m3 GB21900-2008 in the latest
Konka chloride nary 1 ；hydrogen Air Emission version of
27Konka Group Co. Ltd. Interim Report 2024
Precis formalde pollut fourtee chloride≤30mg/m Limits Table 5 national
ion hyde ion n on 3；TVOCogen Guangdong Air discharge
hydrogen sourc the chl；benzenen Pollutant Emission permit in
cyanide es roof of chlori； Standard 2020
nitrogen plant 2 methylbenzenorid DB44/27-2001 the
oxide and e≤30； Second Level
ammonia one in dimethylbenzene Standard in the
benzene sewag de≤30mg/；tin Second Period
methylbe e and its Emission standard
nzene station compounds≤8.5m for Odor Pollutants
TVOC g/m3；PM (GB 14554-1993)
tin and its （dust）≤≤stand Table 2 Standard
compoun i；oil Emission standard
ds PM fume≤2mg/m3 of cooking fume
(dust) oil (GB18483-2001)
fume
Treatment of pollutants
1. XingDa HongYe
All production equipment of Guangdong Xingda Hongye Electronics Co. Ltd. has been set up with
supporting environmental protection facilities according to the requirements of environmental
impact assessment. The discharge of wastewater waste gas and noise as well as the disposal of all
solid wastes in the Company all met the standards during the Reporting Period.The sewage treatment centre of Guangdong Xingda Hongye Electronics Co. Ltd. with an
investment of about RMB15 million was formally put into production in June 2007 and the
treatment capacity of the sewage treatment facility was 2566 tons/day. After technical
improvement and expansion the capacity increased to 2900 tons/day with the treatment process
remaining unchanged. In 2022 RMB20 million was invested to increase a set of sewage treatment
facility which had been put into operation so as to ensure stable discharge of sewage up to standard.Currently the sewage treatment facilities are functioning well and the main pollutant discharge
meets the discharge standards and environmental assessment standards. The pollutants are
discharged to Fushachong after being treated at the self-built sewage treatment station.
2. Boluo Konka and Boluo Konka Precision
All production equipment of Boluo Konka and Boluo Konka Precision has been reported for
environmental assessment review and approval. The supporting environmental protection and
pollution control facilities have been designed by pollutant type and concentration and effectively
operated in a targeted manner. During the Reporting Period the discharge standards were met in
terms of industrial waste water exhaust and factory noise and all industrial waste generated was
disposed of in compliance with environmental laws and regulations.Boluo Konka was established in 2000. To manufacture single sided PCBs it invested
28Konka Group Co. Ltd. Interim Report 2024
approximately RMB 5 million in constructing a sewage treatment station without the biochemical
treatment function and featuring a discharge capacity of 300 tons per day. In 2007 Boluo Konka
expanded its factory by starting the Phase II project which was submitted for environmental
assessment as Boluo Konka PCB Double Sided and Multi-Layer PCB Project (later the project
owner was changed into Boluo Konka Precision). It spent about RMB 10 million on constructing
the Phase II sewage treatment station to add the biochemical treatment function with a discharge
capacity of 800 tons per day.In 2019 according to the requirements in the documents issued by Boluo County Ecology and
Environment Bureau the two sewage treatment stations of Boluo Konka and Boluo Konka
Precision must be upgraded towards higher standards. Through comprehensive assessment of the
professional environmental protection company it was decided that the sewage treatment stations
of the said companies be combined to meet the upgrading requirements. Boluo County Ecology and
Environment Bureau approved the combination of the discharge outlets of the aforementioned
companies and Boluo Konka would appoint Boluo Konka Precision to treat sewage. After the
combination of discharge outlets the discharge capacity would reach 1100 tons per day. The
aforementioned two companies spent about RMB 20 million between 2019 and 2020 on upgrading
the sewage treatment stations towards higher standards and added industrial advanced processes
and treatment systems such as RO water treatment Fenton oxidation and MBR films. After the
technological improvements and expansion the sewage treatment reaches 2200 tons per day (with
a discharge capacity of 1100 tons per day) with a reuse rate of more than 60%. At present the
waste water treatment facilities are operating in good conditions; the discharge of major pollutants
meets the discharge standards. After advanced treatment of the water reuse facilities the water
treated by the sewage stations that meets the standards will be reused in the plants while the
remaining water will be discharged to the municipal pipe network to be processed by the urban and
rural water treatment factory before being discharged to the Gongzhuang Rive section of Dongjiang
River.Contingency plan for emergent environmental incident
1. XingDa HongYe
In strict accordance with requirements of laws regulations and relevant documents such as Law of
the People’s Republic of China on Emergency Response and Interim Measures on Environmental
Emergency Response Plan Guangdong Xingda Hongye Electronics Co. Ltd. has established risk
prevention measures and emergency response plans kept its emergency equipment in a normal state
formulated the Contingency Plan for Emergent Environmental Incident and put on records at
Zhongshan Environmental Protection Bureau Guangdong Province record No.: 4420002017044M.In addition the Company conducts a drill of major environmental pollution incident on its factory
29Konka Group Co. Ltd. Interim Report 2024
to enhance its emergency response capabilities for emergent environmental pollution incidents.Furthermore Guangdong Xingda Hongye Electronics Co. Ltd. has built an emergency pool (600m3
underground pool of sewage treatment station) and set up a fire pool (500m3 and located on Floor 1
of Factory Building No. 2) which serve as temporary storage pools for exterior drainage or fire
drainage to eradicate accidental discharge of wastewater in the case of failed operation of the
sewage transmission pipeline or fire accident due to outage or other special circumstances. The
sewage transmission pipeline has been equipped with anti-corrosion and cathodic protection using
anti-corrosion pipes and carbon steel pipes. Pursuant to the new discharge standards the related
discharge pipeline has been modified and the production department has been required to discharge
strictly in accordance with discharge standards to cut the costs of wastewater treatment. Different
types of wastewater are normally and properly treated through fine shunting. Personnel have been
specially arranged to manage the chemical liquid warehouse and exert reasonable control and
requirements over the liquid discharge by the plant and timely transportation of the liquid by
suppliers; emergency tools such as protective masks boots and immiscible pumps have been
equipped.
2. Boluo Konka and Boluo Konka Precision
Boluo Konka and Boluo Konka Precision strictly abides by Emergency Response Law of the
People's Republic of China Interim Measures for the Management of Emergency Plans for
Unexpected Environmental Incidents other related laws and regulations as well as the requirements
of relevant documents. They have established risk prevention measures and emergency plans such
as Emergency Plan for Unexpected Environmental Incidents and have their emergency equipment
run in a normal status. In addition they have filed with Boluo County Branch of Ecology and
Environment Bureau in Huizhou Guangdong and Huizhou Ecology and Environment Bureau
respectively with the file No. 441322-2024-0009-M and 441322-2024-0011-M. They organize all
staff to conduct drills for major environmental pollution incidents every year to improve their
ability for the emergency response to unexpected environmental pollution incidents.Boluo Konka and Boluo Konka Precision are well equipped with all necessary facilities for
emergency response to unexpected incidents including an emergency response pool of industrial
waste water (500m3 under the ground of the sewage treatment station) and a firefighting reservoir
(300m3 located beside the staff dormitory building). In the event of an unexpected environmental
incident such as leakage or failure of a waste water transporting pipe the emergency response pool
will prevent any accident of industrial waste water; in the event of a fire safety accident the
firefighting reservoir will be put into use. All departments are required to discharge pollutants
strictly in accordance with pollutant discharge standards to reduce the costs of waste water
treatment by properly and reasonably dividing solution and waste water discharged from the plants.
30Konka Group Co. Ltd. Interim Report 2024
The chemical warehouses are managed by designated personnel with standard control and
requirements over the loading and unloading of chemical products by suppliers. In terms of
emergency response supplies a full set of emergency rescue tools are prepared including gas masks
acid and alkaline resistant boots gloves goggles safety ropes helmets fire sand and submersible
pumps.Input in environmental governance and protection and payment of environmental protection tax
In the first half of 2024 approximately RMB16 million was input by the Company in
environmental governance and protection and a total of RMB32.85 thousand of environmental
protection tax was paid by the Company.Environmental self-monitoring plan
1. XingDa HongYe
According to the requirements of the Environmental Protection Administration Xingda Hongye
attaches great importance to environmental monitoring management. Thus pursuant to the
Measures for Self-Monitoring and Information Disclosure of National Key Monitored Enterprises
the Report on the Environmental Impact of the Technical Improvement and Expansion Project of
Guangdong Xingda Hongye Electronics Co. Ltd. and the reply opinions for environmental impact
assessment the Company has formulated the Environmental Self-Monitoring Plan and reported to
the municipal environmental protection bureau for approval and record. It implements online
monitoring for the PH COD and ammonia nitrogen pollutants discharged in wastewater through
real-time monitoring and an automatic frequency of every two hours entrusts the qualified third-
party online monitoring equipment operation and maintenance institute to carry out periodic
maintenance on automatic monitoring equipment and monitoring data networking equipment and
entrusts the qualified third-party monitoring unit to carry out the “three wastes” project monitoring.All self-monitoring plan results will be reported and disclosed on public platforms on a periodic
basis.In the case of normal production the results will be updated on a daily basis with online
monitoring data are disclosed in real time or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.
2. Boluo Konka and Boluo Konka Precision
In accordance with the requirements of the environmental protection administration Boluo Konka
and Boluo Konka Precision attach great importance to environmental monitoring management.Thus pursuant to the Measures for Self-Monitoring and Information Disclosure of National Key
Monitored Enterprises and requirements of the environmental impact assessment they have
31Konka Group Co. Ltd. Interim Report 2024
formulated the Environmental Self-Monitoring Plan and reported to the Municipal Environment
Protection Bureau for approval and record. Meanwhile the PH and flow rate of wastewater
discharge are automatically monitored in real time and the pollutants such as COD ammonia
nitrogen and total phosphorus are automatically monitored online every two hours. Furthermore
they entrust the qualified third-party online monitoring equipment operation and maintenance
institute to carry out periodic maintenance on automatic monitoring equipment and monitoring data
networking equipment and entrust the qualified third-party monitoring unit to carry out the "three
wastes" project monitoring in line with the newly released national pollutant discharge permit and
the corporate self-monitoring plans that have been filed. All self-monitoring plan results will be
reported and disclosed on public platforms on a periodic basis.In the case of normal production the results will be updated on a daily basis with online
monitoring data are disclosed in real time or manual monitoring data on a monthly and quarterly
basis are disclosed every two hours.No administrative punishments were received in the Reporting Period due to environmental issues.Other environmental information that should be disclosed
1. XingDa HongYe
The environmental protection investment of Guangdong Xingda Hongye Electronics Co. Ltd. for
the first half of 2024 was approximately RMB11 million mainly used for the depreciation in
Environmental governance equipment and facilities treatment of sewage waste gas and solid waste
as well as the maintenance and upgrading of environmental protection equipment.
2. Boluo Konka and Boluo Konka Precision
From January to June 2024 Boluo Konka and Boluo Precision invested a total of approximately
RMB5 million for environmental protection which was mainly used for the daily treatment of
waste water and waste gas and maintenance of facilities. Meanwhile Boluo Konka and Boluo
Precision separately disclosed environmental information such as information on the industrial
sewage waste gas noise and solid waste on environmental protection platforms such as the
Guangdong Information Platform for Environmental Regulation of Solid Waste National
Information Platform for Emission Permit Management-for Enterprises Guangdong IoT Platform
for Automatic Monitoring of Pollution Sources in the Whole Process-for Enterprises Platform for
Environmental Statistics Systems and System for Automatic Monitoring of Key Pollutant
Discharge Entities and the Basic Database (for Enterprises).Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
32Konka Group Co. Ltd. Interim Report 2024
□Applicable √ Not applicable
Other Environmental Information
According to the examination by the Company the Company and its other holding subsidiaries are
not key pollutant units. All have faithfully implemented the laws and regulations related to
environmental protection such as Environmental Protection Law of the People's Republic of China
Water Pollution Prevention and Control Law of the People's Republic of China Law of the People's
Republic of China on the Prevention and Control of Atmospheric Pollution Law of the People's
Republic of China on Prevention and Control of Pollution From Environmental Noise Law of the
People's Republic of China on the Prevention and Control of Environmental Pollution by Solid
Waste in the daily production and operation.II Social Responsibility
The Company insists 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 protection of rights for all shareholders especially equal status and legal
rights for medium and small shareholders and make insurance of rights to be informed
participation and vote.The Company would perform all obligations of information disclosure to ensure timely accurate
and complete information and strictly execute confidential system of registrar and insider
information to guarantee justice.The Company pays attention to repay to shareholders and insists mutual development with
investors. In the previous three years the Company shares dividends with all shareholders. The
Company strict executes dividend policies regulated in Articles of Association. All cash dividends
comply with regulations in Articles of Association and requirements in shareholders’ conference.
(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 damages upon rights of creditors
happened.
33Konka Group Co. Ltd. Interim Report 2024
2. The Company performs responsibilities to suppliers and customers
(1) It is devoted to improve customer service quality.
The Company is insisting 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 the 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 insists the principle of people orientation to improve working environment promote
occupational skills provide opportunity and platform for development and growth and encourage
self upgradation and realization for employees. Mutual improvement for employees and enterprise
could be achieved.
(1) Be honest and law-abiding to protect legal rights for employees
The Company would strictly comply with laws and regulations in Labor Law and Labor Contract
Law to sign labor contract with employees with fair treatment in employment payment promotion
training demission and retirement. Also the Company would pay all kinds of insurances and
housing fund for employees. Regular physical examination would be organized for each year. Any
problems found would require re-examination and consultation from a doctor.The Company would improve living quality; enhance cohesive force and sense of belongings
through a series of safeguard measures.
(2) To protect occupational health for employees
The Company would establish and perfect training safety assessment by security system to
guarantee the safety and occupational health for employees. On the other hand by promotion of the
34Konka Group Co. Ltd. Interim Report 2024
importance of safety safety awareness would be rooted in the heart to make all employees abide by
safety standards and fully play subjective initiative in protecting self-occupational safety and
production safety.
(3) To promote occupational skills by diversified professional training
The Company has always paid great attention on diversified training for employees. On the one
hand the Company would be meticulous in training of regular business and occupational skills and
carry out all requirements positively to improve professional levels by normal training management.On the other hand the Company would establish methods of self-training platform training
instructor theme training and lectures to provide colorful training activities. Besides the work
professional and comprehensive quality would be fully promoted.
5. Be responsible for environment
The Company concerns about 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. In June 2012 subsidized products catalogue had been released jointly by
National Development and Reform Commission Ministry of Industry and Information and Ministry
of Finance.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 environment protection. It would undertake all responsibilities in many
fields and make attributions to social economic and environmental sustainable development for a
socialism harmonious society.
35Konka Group Co. Ltd. Interim Report 2024
Part VI Significant Events
I Commitments of the Company’s De Facto Controller Shareholders Related Parties and
Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End
□Applicable √ Not applicable
No such cases in 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
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□Applicable √ Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited
□ Yes √ No
The interim financial statements of the Company have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□Applicable √ Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□Applicable √ Not applicable
VII Insolvency and Reorganization
□Applicable √ Not applicable
No such cases in the Reporting Period.VIII Legal Matters
Significant lawsuits and arbitrations:
√ Applicable □ Not applicable
Inde
Involved x to
amount Provisio Decisions and Execution Disclo disclGeneral information (RMB’00 n Progress effects of sure osed
00) decisions date informati
on
Due to a dispute arising from an 16681.2 No The case is The Company The case 24 http:/
36Konka Group Co. Ltd. Interim Report 2024
entrustment contract Shenzhen in the has won the is in the Nove /ww
Konka Pengrun Technology & enforcement lawsuit which enforceme mber w.cni
Industry Co. Ltd. a subsidiary of the phase. is now in the nt phase. 2022 nfo.c
Company instituted legal enforcement om.c
proceedings against Guang'an phase. n/ne
Ouqishi Electronic Technology Co. w/in
Ltd. Guan Hongshao Huaying dex
Gaokede Electronic Technology Co.Ltd. Huaying Gaokelong Electronic
Technology Co. Ltd. Guizhou
Jiaguida Technology Co. Ltd.Sichuan Hongrongyuan Property Co.Ltd. Du Xinyu Lin Bolong and
Wang Shisheng seeking an order
that the defendants should pay the
purchase price of goods and
liquidated damages.The Company
has won the
lawsuit. The
court ruled that
Due to a dispute arising from a the defendant
security contract Anhui Konka should repay
Electronic Co. Ltd. a subsidiary of the principal of
the Company instituted legal USD2364400 24
The case
proceedings against Maoxinyuan The case has default interest Nove
2128.62 No has been
Electronics (Shenzhen) Co. Ltd. been closed. etc. mber
closed.seeking an order that the defendant RMB1753870 2022
should assume its joint and several 0 has been
liability to the plaintiff under the recovered
guarantee. through
enforcement
measures. The
case has been
closed.Due to a dispute arising from an
equity transfer agreement the
Company instituted legal proceedings
The Company
against Beijing Langruihaoteng
The case is has won the The case
Technology Development Co. Ltd.in the lawsuit which is in the 1 June
Beijing Beida Jade Bird Security 4540.76 No
enforcement is now in the enforceme 2023
System Engineering Technical Co.phase. enforcement nt phase.Ltd. and Beijing Jingruihaoteng
phase.Technology Development Co. Ltd.requesting the final payment for the
equity transfer.The Company
Due to a dispute over capital
has won the
increase the Company's subsidiary
lawsuit and
Shenzhen Konka Investment Holding
RMB1322354
Co. Ltd. applied for arbitration
00 has been The case
toward the Shenzhen Court of The case has 1 June
9790.53 No recovered has been
International Arbitration requesting been closed. 2021
through closed.the respondents namely Elion
enforcement
Resources Group Co. Ltd. and Elion
measures. The
Ecological Co. Ltd. to perform the
case has been
repurchase obligation.closed.
37Konka Group Co. Ltd. Interim Report 2024
The
Company
Due to a contract dispute Shenzhen
has won the
Oriental Venture Capital Investment The trial 24
lawsuit in The second-
Co. Ltd. initiated legal proceedings of the Nove
75214.75 No the first instance trial is
against the Company requesting an case is mber
instance. The ongoing.order that the repurchase amount and ongoing. 2022
second-
liquidated damages be paid.instance trial
is ongoing.Due to a dispute over bankruptcy
Xinxiang Jia Hui Dakeluo Crafts
Products Co. Ltd. initiated legal
proceedings against the Company's
The trial
subsidiary Henan Frestec Electrical The second- The second-
of the 1 June
Appliances Co. Ltd. requesting a 4576.7 No instance trial instance trial is
case is 2023
confirmation that the end-of-period is ongoing. ongoing.ongoing.VAT credit that had been refunded
by the tax authority to the defendant
should be a part of other property
available for distribution.Due to a dispute arising from an
international sale of goods contract The
Anhui Kangzhi Trade Co. Ltd. a Company
The case 24
subsidiary of the Company initiated has won the The Company
is in the Nove
legal proceedings against B&L 2845.19 No lawsuit and has won the
enforceme mber
TECHNOLOGY CO. LIMITED the ruling lawsuit.nt phase. 2022
seeking an order that the respondent has taken
should pay the purchase price of effect.goods and liquidated damages.Note: Courts or arbitration bodies ruled in favor of the Company in the following cases which are currently under enforcement. Details of these cases
can be found in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No.
2019-63) the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 19 September 2020 (Announcement No. 2020-97) the
Announcement on Accumulative Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89) the Announcement on Accumulative Lawsuits and
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37) the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) and the Company's periodic reports: 1. As matured notes were failed to be accepted the Company has filed
a lawsuit with the court to request China Energy Electric Fuel Co. Ltd. China Energy (Shanghai) Enterprise Co. Ltd.. Shanghai Nengping industrial
Co. Ltd. and Shenzhen Qianhai Baoying Factoring Co. Ltd. to pay the bill and the corresponding interest to the Company; 2. As matured notes were
failed to be accepted the Company has filed a lawsuit with the court to request Shanghai Huaxin International Group Co. Ltd. and Tianjin
International Trade Petrochemical Co. Ltd. to pay the bill and the corresponding interest to the Company; 3. As matured notes were failed to be
accepted the Company has filed a lawsuit with the court to request Shanghai Huaxin International Group Co. Ltd. Qingdao Bonded Zhongshe
International Trading Co. Ltd. and Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd. to pay the bill and the corresponding interest to the
Company; 4. As a consequence of the non-payment of a bill upon its expiry Kongka Factoring has instituted legal proceedings before the court. The
lawsuit seeks an injunctive order mandating Tahe Group Co. Ltd. Fuzhou Taijia Industrial Co. Ltd. and Xiamen Lianchuang Microelectronics Co.Ltd. to remit payment for the bill amount along with the corresponding interest to Kongka Factoring.; 5. As matured notes were failed to be accepted
the Company has filed a lawsuit with the court to request Hefei Huajun Trading Co. Ltd. and Wuhan Jialian Agricultural Technology Development
Co. Ltd. to pay the bill and the corresponding interest to the Company; 6. Due to dispute arisen from a logistics contract the Company’s subsidiary
Anhui Konka filed a lawsuit to request the freight forwarder Shanghai Triangle Link Logistics Co. Ltd. Shenzhen Branch to make compensation; 7.Due to contract dispute the Company’s subsidiary Shenzhen Nianhua applied for arbitration to request the respondent Fang Xianglong and Jiang Yan
38Konka Group Co. Ltd. Interim Report 2024
to make compensation for corresponding annual profit and fund possession cost; 8. Due to payment dispute the Company’s subsidiary Hong Kong
Konka applied for an arbitration to Shenzhen Court of International Arbitration to request the respondent Makena Electronic (Hong Kong) to pay for
goods and liquidated damages; 9. As a result of a dispute stemming from an international sale of goods contract Anhui Konka Electronic Co. Ltd. a
subsidiary of the Company has initiated legal proceedings against Maoxinyuan Electronics (Hong Kong) Co. Ltd. The lawsuit seeks an injunctive
order compelling the respondent to pay the applicant the overdue payment interest losses; 10. As a result of the repurchase dispute the Company sued
Luo Zaotong Luo Jingxia Luo Zongyin Luo Zongwu and Shenzhen Yaode Technology Co. Ltd. for an order to pay the share repurchase amount
together with interests. 11. Because of a dispute over a contract the Company filed a lawsuit with Zhengzou Intermediate People's Court requiring
Henan Radio and Television Network Co. Ltd. to take delivery of goods make payment for goods and pay interest and liquidated damages
according to the contract. 12. As a result of contractual disputes Shenzhen Konka Unifortune Technology Co. Ltd. a subsidiary of the Company has
initiated legal proceedings against Shenzhen Yaode Technology Co. Ltd. Dongsheng Xinluo Technology (Shenzhen) Co. Ltd. Shenzhen Hongyao
Dingsheng Investment Management Limited Partnership Shenzhen Xiangrui Yingtong Investment Management Limited Partnership Luo Jingxia
Luo Zongwu Luo Zongyin Luo Zaotong and Luo Saiyin seeking restitution for goods received and claiming damages for breach of contract. 13. On
account of the infringement of the Company’s trademark rights and the practice of unfair competition a lawsuit has been instituted by the Company
against Xinshang Electronics Co. Ltd. located in Fu’an City as well as Fujian Zhaoguan Industry and Trade Co. Ltd. Jinhua Kangjia Medical
Equipment Factory and Wang Jun seeking an injunctive order to halt the infringement and claiming compensation for any incurred losses. 14. Due
to the dispute over the entrustment contract Anhui Kangjia Electronics Co. Ltd. a subsidiary of the company sued Shenzhen Meisen Plastic
Electronics Co. Ltd. Shantou Meisen Technology Co. Ltd. Lin Yuanqin Huang Ruirong and Jiangsu Huadong Hardware City Co. Ltd. asking for
an order to terminate the contract return the payment for goods and pay liquidated damages and give priority to the mortgage property. 15. Due to
the contract dispute the Company's subsidiary Anhui Kangjia Electronics Co. Ltd. sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisen
Source Plastic Electronics Co. Ltd. Lin Yuanqin Huang Ruirong Jiangsu Huadong Hardware City Co. Ltd. requiring the order to terminate the
contract the defendant to return the payment and pay liquidated damages the mortgage property priority compensation. 16. Due to the dispute over
the loan contract the Company sued Yantai Kangyue Investment Co. Ltd. requiring the defendant to repay the loan and interest. 17. Due to the share
buyback dispute the Company's subsidiary Shenzhen Nianhua Enterprise Management Co. Ltd. sued Fang Xianglong and Jiang Yan to buy back the
share and pay the buyback price. 18. Due to the dispute over the sales contract Sichuan Kangjia 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 demanding payment
of goods and liquidated damages. The case is being executed. 19. Due to a contract dispute the Company's subsidiary Konka Mobility Co. Limited
initiated legal proceedings against Genstar Hong Kong Limited Zeng Jiankai and Zhong Yuhua demanding payment of price of goods and liquidated
damages; 20. due to a dispute arising from an entrustment contract Henan Frestec Refrigeration Appliance Co. Ltd. a subsidiary of the Company
initiated legal proceedings against Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Shantou Meisen Technology Co. Ltd. Lin Yuanqin Huang
Ruirong and Chuangfu Commerce & Trade Plaza Real Estate Development (Huizhou) Co. Ltd. requesting an order that the contract be rescinded
the payment for goods be refunded the liquidated damages be paid and the debts be preferentially paid with the mortgaged property; 21. due to a
dispute arising from an entrustment contract Hainan Konka Material Technology Co. Ltd. a subsidiary of the Company initiated legal proceedings
against Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. and Jiangsu Huadong Hardware City Co. Ltd.requesting an order that the contract be rescinded the payment for goods be refunded the liquidated damages be paid and the debts be preferentially
paid with the mortgaged property; 22. due to a dispute arising from a sales contract Dongguan Konka Electronic Co. Ltd. a subsidiary of the
Company initiated legal proceedings in the Nanshan Primary People's Court Shenzhen requesting an order that Dongguan High Energy Polymer
Materials Co. Ltd. Wang Dong Shenzhen Xinlian Xingyao Trading Co. Ltd. Shenzhen Jinchuan Qianchao Network Technology Co. Ltd. Puning
Junlong Trading Co. Ltd. and Huang Zhihao pay the overdue amount payable for goods and the corresponding liquidated damages.The following cases have been disclosed in current announcements and periodic reports and are currently in trial. Details of these cases can be found
in the Company's Announcement on Large Amount Pending Lawsuits and Arbitrations disclosed on 25 June 2019 (Announcement No. 2020-97) and
the Announcement on Accumulated Lawsuits and Arbitrations disclosed on 1 June 2021 (Announcement No. 2021-48) and the Announcement on
Accumulative Lawsuits and Arbitrations disclosed on 1 December 2021 (Announcement No. 2021-101) the Announcement on Accumulative
Lawsuits and Arbitrations disclosed on 24 November 2022 (Announcement No. 2022-89) the Announcement on Accumulative Lawsuits and
39Konka Group Co. Ltd. Interim Report 2024
Arbitrations disclosed on 1 June 2023 (Announcement No. 2023-37) the Announcement on Accumulative Lawsuits and Arbitrations disclosed on 22
June 2023 (Announcement No. 2023-39) and the Company's periodic reports: 1. The customer of Hong Kong Konka H-BUSTER SAO PAULO
INDUSTRIAE COMERCIO S.A (Brazil) was insolvent and obtained the approval of the judicial reorganization application of Cotia Third Civil
Court of the Court of Sao Paulo Brazil in May 2013. As the creditor of H-BUSTER Hong Kong Konka filed the debt declaration documents and in
August 2014 the amount confirmed of debt was USD2.78 million. 2. Because of a dispute over an agency agreement the Company's subsidiary
Henan Frestec Refrigeration Appliance Co. Ltd. sued Shantou Meisen Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd.Lin Yuanqin Huang Ruirong Jiangsu Huadong Hardware Zone Co. Ltd. and Chuangfu Commerce & Trade Plaza Real Estate Development
(Huizhou) Co. Ltd. requesting to terminate the contract and requesting them to return the payment of goods and liquidated damages and priority
shall be given to the payment for the secured assets. 3. As the notes were not repaid at maturity the Company filed a lawsuit with the court
requesting that Wuhan Jialian Agricultural Science and Technology Development Co. Ltd. be ordered to honour the notes as well as the
corresponding interest to the Company. 4. As a result of a dispute arising from an international sale of goods contract Jiaxin Technology Co. Ltd. a
subsidiary of the Company has initiated legal proceedings against Dingxin Electronic Technology (Hong Kong) Co. Ltd. Chen Wenhuan and Chen
Baohong seeking an order for the defendants to pay for the goods and claiming damages for breach of contract; 5. Due to a dispute arising from an
installment purchase contract Wu Rong has instituted legal proceedings against the Company and its subsidiary Shenzhen Konka Electronics
Technology Co. Ltd. seeking an order for the payment of the purchase price and overdue payment interest to the plaintiff. 6. Due to a contractual
dispute Shenzhen Konka 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 to return the payment for goods and pay the corresponding liquidated damages. 7. Due to a dispute over
the cancellation of creditor's rights the Company’s subsidiary Anhui Konka Electronic Co. Ltd. filed a lawsuit against Wu Rong and Makena
Electronic (Shenzhen) Co. Ltd. seeking for the cancellation of the Agreement on the Transfer of Creditor's Rights and the relevant supplemental
agreement previously signed by the defendants. 8. Due to a purchase and sales contract Sichuan Shuwu Guangrun Logistics Co. Ltd. filed a lawsuit
against the Company’s subsidiary Dongguan Konka Electronic Co. Ltd. requesting the latter to make payment for goods and pay liquidated damages.
9. Due to a purchase and sales contract of international goods Micro Crystal Transfer Group Ltd. filed a lawsuit against the Company’s subsidiary
Chongqing Konka Optoelectronic Technology Research Institute Co. Ltd. requesting the latter to make payment for goods and pay liquidated
damages. 10. 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. 11. As Jiangxi Xinxin Jian’an Engineering Co. Ltd. (hereinafter referred to as the “Jiangxi Xinxin”)
Jiangxi Shanshi Technology Development Co. Ltd. (hereinafter referred to as the “Jiangxi Shanshi”) and Jiangxi Zhongyi Decoration Materials Co.Ltd. (hereinafter referred to as the “Jiangxi Zhongyi”) failed to repay a loan and corresponding interest to China Great Wall Asset Management Co.Ltd. Jiangxi Branch (hereinafter referred to as “Great Wall Asset Jiangxi Branch”) Great Wall Asset Jiangxi Branch initiated legal proceedings in a
court requesting a ruling that Jiangxi Xinxin Jiangxi Shanshi and Jiangxi Zhongyi repay loans totaling RMB300 million liquidated damages totaling
RMB108000 and interest of RMB13.65 million and requesting 9 guarantors including Jiangxi Konka Xinfeng Microcrystalline and Nanocrystal to
assume their joint and several liability under the guarantee.Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□Applicable √ Not applicable
No such cases in the Reporting Period.X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable √ Not applicable
40Konka Group Co. Ltd. Interim Report 2024
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√ Applicable □ Not applicable
As % Obtain
Relati of total Approv able Index
onshi Type Pricin Tran Total value ed Over Method market
Related p with of Specific g sacti value of all transact the of price Disclos
to
disclos
party the transa transaction princi on (RMB’ same- ion line approv settlem for ure ed
Comp ction ple price 0000) type (RMB’ ed line ent same- date
any transact 0000) or not type
inform
ions transact
ation
ions
OCT Purch http://w
Enterpri Under ase of
ses Co. the com Property
ww.cni
Ltd and same modit management
Negot Mar 4293.7 2 April nfo.co
its actual ies utilities
iated ket 7 0.90% 15000 Not Cash N/A 2024 m.cn/n
subsidia contro and office leases
price price
ew/ind
ries ller services ex
OCT Sale of TVs http://w
Enterpri Under Sales intelligent
ses Co. the of terminals etc.ww.cni
Ltd and same goods and collection
Negot Mar 3705.5 2 April nfo.coiated ket 0.73% 10000 Not Cash N/A
its actual and of installation price price 8 2024 m.cn/n
subsidia contro servic charges for
ries ller es smart TV
ew/ind
terminals ex
7999.3
Total -- -- 5 -- 25000 -- -- -- -- --
Large-amount sales return in detail N/A
The Company has published the Forecasting Public Notice on Routine Related-party Transaction for
Give the actual situation in the Reporting Y2024 on Securities Times Shanghai Securities News and China Securities Journal as well as the
Period (if any) where an estimate had been
made for the total value of continuing related- Internet website designated by CSRC http://http://www.cninfo.com.cn/new/index on 2 April 2024. In the
party transactions by type to occur in the Reporting Period the basis for pricing transaction price transaction amount and settlement methods of
Reporting Period raw materials purchased by the Company were basically in accordance with the forecast. The total amount
incurred was RMB79.9935 million.Reason for any significant difference between
the transaction price and the market reference N/A
price (if applicable)
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity
Investments
□Applicable √ Not applicable
No such cases in 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:
Related Related Forming Beginning Increased in Recovered in Interest in Ending
party relation reason balance the the
Interest the balance
ship (RMB’0000 Reporting Reporting rate Reporting (RMB’0000
41Konka Group Co. Ltd. Interim Report 2024
) Period Period Period )
(RMB’0000 (RMB’0000 (RMB’00
))00)
OCT Control The 81091.00 0 0 3.45% 1414.36 81091.00
Enterprise ling Company 50000.00 0 0 3.45% 872.08 50000.00
s Co. shareh applies
Ltd. older entrustedloan to it 70000.00 0 0 3.45% 1220.92 70000.00
Effects of liabilities with related
parties on the Company’s operating The Company applies entrusted loan from OCT Enterprises Co. Ltd. which meets the
results and financial conditions needs of the company's existing business development and reduces the 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
Counter-security provided by the Company to apply for banks' credit facilities and the payment of
the security fee: At the 23rd meeting held by the 10th Board of Directors on 1 March 2024 and
the second Extraordinary general meeting of shareholders in 2024 which was held on 18 March
2024 the Company deliberated on and approved the Proposal on the Company's Provision of
Counter-security to Apply for Banks' Credit Facilities and Payment of Security Fees. To reduce
financing costs and optimize the debt structure the Company plans to request Overseas Chinese
Town Holdings Company to provide an unconditional and irrevocable joint and several guarantee
for the full amount of the credit facilities not exceeding RMB1.6 billion which the Company
plans to apply toward banks. Accordingly the Company plans to provide counter-security with
the same amount and term to Overseas Chinese Town Holdings Company; the amount of the
counter-security is expected not to exceed RMB1.6 billion and the secured lines of credit are
expected to stay valid for no more than three years. At the same time the Company plans to pay
Overseas Chinese Town Holdings Company security fees for the secured amount actually used
and the security fees are expected not to exceed 0.5% of the secured amount actually used that is
if the secured amount is RMB1.6 billion the total amount of security fees paid by the Company
will not exceed RMB8 million subject to the specific contract terms.Index to the public announcements about the said related-party transactions disclosed
Title of public announcement Disclosure date Disclosure website
Announcement on the Company's Provision of Counter-
security to Apply for Banks' Credit Facilities and Payment 2 March 2024 http://www.cninfo.com.cn/new/index
of Security Fees and Related Party Transactions
42Konka Group Co. Ltd. Interim Report 2024
XII Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
√ Applicable □ Not applicable
Note to leases
No significant leases in the Reporting Period.The total rental revenue of Konka R&D Building Konka Guangming Technology Centre and other
properties was approximately RMB54.60 million in the Reporting Period.The project bringing about gains or losses as over 10% of total profit in the Reporting Period
□ Applicable √ Not applicable
No such cases 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
Havin Guarante
date of the Counter
Actual Collater Term of g e for a
Obligor guarantee Line of Guarante Type of guaranteoccurrence al (if guarante expire related
line guarantee e amount guarantee e (if
date any) e d or party or
announceme any)
not not
nt
30
September 1624 Joint-liability No Not 2 years Not Not
2022
23 1 year
November 2748 Joint-liability No Not and a Not Not
2022 half
22 May
2023 1499 Joint-liability No Not 4 years Not Not
5 July 2023 4997 Joint-liability No Not 1 year Not Not
19 July
2023 2498 Joint-liability No Not 1 year Not Not28 April
Econ Technology 500002022 28 August
2023 999 Joint-liability No Not 1 year Not Not
29
December 1374 Joint-liability No Not 1 year Not Not
2023
28
December 2498 Joint-liability No Not 1 year Not Not
2023
6 February
2024 125 Joint-liability No Not 1 year Not Not
1 March
2024 4489 Joint-liability No Not 1 year Not Not
43Konka Group Co. Ltd. Interim Report 2024
30 April
2024 500 Joint-liability No Not 1 year Not Not
Jiangxi Xinxin
Jian’an 1210000 December 10000 Joint-liability No Not Not Not
Engineering Co. 2016
Ltd.Jiangxi Zhongyi
Decoration 1210000 December 10000 Joint-liability No Not Not Not
Materials Co. 2016
Ltd.Jiangxi Shanshi
Technological 1210000 December 10000 Joint-liability No Not Not Not
Development Co. 2016
Ltd.
8
September 60000 Joint-liability No Not 3 years Not Yes
2022
18 October
2022 60000 Joint-liability No Not 3 years Not Yes
22
30 March September 50000 Joint-liability No Not 3 years Not Yes
2022252023
February 13
OCT Group 2023 10 710000 December 50000 Joint-liability No Not 3 years Not Yes
August 2023 2023
and 1 March 29 January
2024 150000 Joint-liability No Not 3 years Not Yes2024
18 March
2024 80000 Joint-liability No Not 3 years Not Yes
26 March
2024 50000 Joint-liability No Not 3 years Not Yes
25 June
2024 60000 Joint-liability No Not 2 years Not Yes
Total approved line for such guarantees in the Reporting 160000 Total actual amount of such guarantees in thePeriod (A1) Reporting Period (A2) 345114
Total approved line for such guarantees at the end of the 1237370 Total actual balance of such guarantees at the end ofReporting Period (A3) the Reporting Period (A4) 613351
Guarantees provided between the Company and subsidiaries
Disclosure
Havin Guarante
date of the
Line of Actual Type of Collater Term of g e for a
Obligor guarantee Guarante Counter guarantee (ifguarante occurrenc guarante al (if guarante expire related
line e amount any)
e e date e any) e d or party or
announceme
not not
nt
19
October 10000 Joint-liability No Not 1 year Not Not2023
20 Joint- 1 year
Anhui 25 February Novembe 3000 No Not and a Not Not55000 liability
Tongchuang 2023 r 2023 half
20 June 5000 Joint-2024 liability No Not 1 year Not Not
20 May Joint-
2024 5000 liability No Not 1 year Not Not
15
January 4000 Joint-liability No Not 1 year Not Not
28 April 2024
2022 and 25 25
Boluo Precision 12500 August 4500 Joint-liability No Not 3 years Not NotFebruary 2023
202329
January 2000 Joint-liability No Not 1 year Not Not2024
2 April Joint-
Electronics 25 February 100000 2024 8500 liability No Not 1 year Not Not
44Konka Group Co. Ltd. Interim Report 2024
Technology 2023 26
Septembe 50000 Joint-liability No Not 1 year Not Notr 2023
24 March
2021 and 25
Dongguan Konka 90000 23 June 80000 Joint-2021 liability No Not 10 years Not NotFebruary
2023
Other shareholder of
15 Jiangxi Konka
Jiangxi Konka 31 October2018 6000 August 6000
Joint- No provides a counter 1 year Not Not
2023 liability guarantee for theCompany for 49% of
the guarantee line
24 March
2021 and 25
Sichuan Konka 20000 23 May Joint-
February 2023
4000 liability No No 3 years Not Not
2023
2 March Joint- 1 yearNingbo Khr 2023 6000 liability No No and a Not Not
Electric 28 April2022 12000
half
Appliance 13 July
20236000
Joint-
liability No No 1 year Not Not
Other shareholder of
13 Yibin Kangrun
Yibin Kangrun 24 October2020 10000 Novembe 10000
Joint- No provides a counter
r 2020 liability guarantee for the
4 years Not Not
Company for 33% of
the guarantee line
Telecommunicati 28 April 20000 23 July 7500 Joint-
on Technology 2022 2023 liability
No No 1 year Not Not
10
August 10216 Joint-liability No 10 years Not Not2021
29
October 7000 Joint- No 5 years Not Not
2021 liability
24
October 7000 Joint- No Other shareholder of 4 years Not Not
2022 liability Anhui Konka
Anhui Konka 28 April
19 provides a counter
2022 110000 Septembe 7000
Joint-
liability No guarantee for the 2 years Not Notr 2022 Company for 22% of
25 June 5000 Joint- No the guarantee line2023 liability 5 years Not Not
31
August 5500 Joint-liability No 1 year Not Not2023
22
Septembe 18000 Joint-liability No 1 year Not Notr 2023
22
Decembe 5000 Joint-liability No 1 year Not Not
Konka Circuit 24 March2021 50000
r 2023 No
19 July 10000 Joint-
3 years
2023 liability No and a Not Nothalf
28 April
Mobile 2022 and 25 1015000 Novembe 7000 Joint-liability No No 1 year Not NotInterconnection February r 2023
2023
12 July 8278 Joint- No No 5 years Not Not
Konka Xinyun 24 March 2021 liability30000
Semiconductor 2021 26 May 6000 Joint-2024 liability No No 2 years Not Not
45Konka Group Co. Ltd. Interim Report 2024
Yibin Konka 24 March 27 March Joint-
2021 980 2024 980 liability No No 1 year Not NotIntelligent
Chongqing 24 March 13
2021 55600 Decembe 38000
Joint-
Konka r 2022 liability
No No 15 years Not Not
Frestec Smart 28 April 3012240 January 10200 Joint-2022 liability No No 3 years Not NotHome 2024
Konka Soft 28 April 19
2022 19000 Decembe 975
Joint-
liability No No 4 years Not NotElectronic r 2022
28 April
Suining Konka 2022 and 25 2427500 January 19010 Joint-Hongye February 2024 liability
No No 14 years Not Not
2023
Xi'an Kanghong
Technology
Industry 25 February 26 May Joint-2023 30000 2023 30000 liability No No 10 years Not Not
Development Co.Ltd.Total approved line for such guarantees in the Reporting 0 Total actual amount of such guarantees in thePeriod (B1) Reporting Period (B2) 60690
Total approved line for such guarantees at the end of the Total actual balance of such guarantees at the end of
Reporting Period (B3) 964855 the Reporting Period (B4) 406659
Guarantees provided between subsidiaries
Disclosure
Havin Guarante
date of the Counter
Actual Collater Term of g e for a
Obligor guarantee Line of Guarante Type of guaranteoccurrence al (if guarante expire related
line guarantee e amount guarantee e (if
date any) e d or party or
announceme any)
not not
nt
No
Total approved line for such guarantees in the Reporting Total actual amount of such guarantees in the
Period (C1) 0 Reporting Period (C2) 0
Total approved line for such guarantees at the end of the 0 Total actual balance of such guarantees at the end ofReporting Period (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) 160000
Total actual guarantee amount in the Reporting
Period (A2+B2+C2) 405804
Total approved guarantee line at the end of the Reporting 2202225 Total actual guarantee balance at the end of thePeriod (A3+B3+C3) Reporting Period (A4+B4+C4) 1020010
Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets 224.02%
Of which:
46Konka Group Co. Ltd. Interim Report 2024
Balance of guarantees provided for shareholders actual controller and their related parties (D) 560000
Balance of debt guarantees provided directly or indirectly for obligors with an over 70% debt/asset ratio (E) 1020010
Amount by which the total guarantee amount exceeds 50% of the Company’s net assets (F) 792345
Total of the three amounts above (D+E+F) 1020010
Joint responsibilities possibly borne in the Reporting Period for undue guarantees (if any) No
Provision of external guarantees in breach of the prescribed procedures (if any) No
Compound guarantees:
None
3. Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management in the Reporting Period
Unit: RMB’0000
Unrecovered
Type Funding source Amount Undue amount Unrecovered overdue amountoverdue amount with provision for
impairment
Trust financial
products Self-owned 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 the case where the principal cannot be recovered at maturity or other case 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 Other Significant Events
√ Applicable □ Not applicable
(I) Initiation and establishment of funds: The total scale of the Oriental-Konka Industry M&A Fund
was RMB1001000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500
million accounting for 49.95% of the total units. By the date of this report Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB487344000. The fund invested in Jiangxi
Yahua Electronic Materials Co. Ltd. Potron Technology Co. Ltd. etc.The total scale of the Kunshan-CITIC-Konka Emerging Industry Development Investment Fund
47Konka Group Co. Ltd. Interim Report 2024
was RMB1006000000. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB500
million accounting for 49.70% of the total units. By the date of this report Shenzhen Konka
Investment Holding Co. Ltd. has contributed RMB195.21 million. The fund invested in
UNIONTECH Hercules Microsystems (HME) etc.The total scale of the Tongxiang Wuzhen Jiayu Digital Economic Industry Fund was RMB500
million. Shenzhen Konka Investment Holding Co. Ltd. contributed RMB200 million accounting
for 40% of the total units. By the date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB200000000. The fund invested in Feidi Technology (Shenzhen) Co. Ltd.Allystar Technology (Shenzhen) Co. Ltd. etc.The total scale of Yancheng Kangyan Industry Investment Fun was RMB3000 million. Shenzhen
Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management
Co. Ltd. contributed RMB1201500000 accounting for 40.05% of the total units. By the date of
this report Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity
Investment Management Co. Ltd. have contributed RMB217.36 million. The fund invested in
Anhui Zhongdian Xingfa and Xinlong Co. Ltd. Chongqing E2info Technology Co. Ltd. etc.The total scale of Yibin Kanghui Electronic Information Industry Equity Investment Fund was
RMB1002000000. Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital
Equity Investment Management Co. Ltd. contributed RMB401 million accounting for 40.02% of
the total units. By the issuance date of this report Shenzhen Konka Investment Holding Co. Ltd.has contributed RMB104 million. The fund invested in Chongqing E2info Technology Co. Ltd. etc.The total scale of Chongqing Kangxin Equity Investment Fund was RMB2 billion. Shenzhen
Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment Management
Co. Ltd. contributed RMB1 billion accounting for 50% of the total units. By the date of this report
Shenzhen Konka Investment Holding Co. Ltd. and Shenzhen Konka Capital Equity Investment
Management Co. Ltd. have contributed RMB148248300. The fund invested in Shanghai VEIGLO
Information System Co. Ltd. Jiangxi Taide Wisdom Technology Co. Ltd. etc.(II) Corporate bonds issue: As for the non-public offering of corporate bonds of RMB2.3 billion
RMB1.5 billion and RMB0.8 billion of corporate bonds have been issued on 29 January 2024 and
18 March 2024 respectively.
(III) Disclosure index of significant information
Announce
ment No. Date Title Page on newspaper
Website
link
2024-01 30 January 2024 Announcement on Results of Non-public Offering of Corporate Bonds (Tranche I) Securities Daily B53 Shanghai Securities News http://wwwin 2024 36 etc. .cninfo.co
2024-02 31 January 2024 2023 Annual Result Forecast Securities Daily B76 Shanghai Securities News
m.cn/new/i
10 etc. ndex
2024-03 7 February 2024 Announcement on Resolutions of the 22nd Meeting of the 10th Board of Directors Securities Daily B128 Shanghai Securities News74 etc.
48Konka Group Co. Ltd. Interim Report 2024
2024-04 7 February 2024 Announcement on Resolutions of the 10th Meeting of the 10th Board of Securities Daily B128 Shanghai Securities NewsSupervisors 74 etc.
2024-05 7 February 2024 Announcement on Revision of the Company's Articles of Association and Other Securities Daily B127 Shanghai Securities NewsPolicies 73 etc.
2024-06 7 February 2024 Announcement on Provision of Financial Assistance for Sichuan Hongxinchen Securities Daily B128 Shanghai Securities NewsReal Estate Development Co. Ltd. in Proportion to Shareholdings 74 etc.
2024-07 7 February 2024 Announcement on Provision of Financial Assistance for Yantai Kangyun Securities Daily B45 Shanghai Securities NewsIndustrial Development Co. Ltd. in Proportion to Shareholdings 74 etc.
2024-08 7 February 2024 Notice on Holding the First Extraordinary General Meeting of Shareholders in Securities Daily B128 Shanghai Securities News2024 73 etc.
2024-09 27 February 2024 Announcement on Resolutions of the First Extraordinary General Meeting of Securities Daily B3 Shanghai Securities NewsShareholders in 2024 73 etc.
Announcement on the Company's Provision of Counter-security to Apply for
2024-10 2 March 2024 Banks' Credit Facilities and Payment of Security Fees and Related Party Securities Daily B49 Shanghai Securities News
Transactions 20 etc.
2024-11 2 March 2024 Announcement on Resolutions of the 23th Meeting of the 10th Board of Directors Securities Daily B49 Shanghai Securities News20 etc.
2024-12 2 March 2024 Notice on Holding the Second Extraordinary General Meeting of Shareholders in Securities Daily B49 Shanghai Securities News2024 20 etc.
2024-13 15 March 2024 Reminder Announcement on Holding the Second Extraordinary General Meeting Securities Daily B19 Shanghai Securities Newsof Shareholders in 2024 28 etc.
2024-14 15 March 2024 Announcement on the Progress of Provision of Security for External Parties Securities Daily B19 Shanghai Securities News28 etc.
2024-15 19 March 2024 Announcement on Resolutions of the Second Extraordinary General Meeting of Securities Daily B80 Shanghai Securities NewsShareholders in 2024 20 etc.
2024-16 19 March 2024 Announcement on Results of Non-public Offering of Corporate Bonds (Tranche Securities Daily B80 Shanghai Securities NewsII) in 2024 20 etc.
2024-17 22 March 2024 Announcement on the Progress of Provision of Security for External Parties Securities Daily B14 Shanghai Securities News28 etc.
2024-18 2 April 2024 2023 Annual Report Securities Daily B192 Shanghai Securities News169 etc.
2024-19 2 April 2024 Summary of 2023 Annual Report Securities Daily B192 Shanghai Securities News169 etc.
2024-20 2 April 2024 Announcement on Resolutions of the 24th Meeting of the 10th Board of Directors Securities Daily B192 Shanghai Securities News169 etc.
2024-21 2 April 2024 Announcement on Resolutions of the 11th Meeting of the 10th Board of Securities Daily B192 Shanghai Securities NewsSupervisors 169 etc.
2024-22 2 April 2024 Announcement on Expected Routine Related Party Transactions in 2024 Securities Daily B192 Shanghai Securities News169 etc.
2024-23 2 April 2024 Announcement on Expected Routine Related Party Transactions in 2024 Securities Daily B192 Shanghai Securities News169 etc.
2024-24 2 April 2024 Announcement on Provisioning for Asset Impairment in 2023 Securities Daily B192 Shanghai Securities News169 etc.
2024-25 8 April 2024 Announcement on Holding 2023 Online Meeting for Result Release Securities Daily B46 Shanghai Securities News10 etc.
2024-26 29 April 2024 2024 Q1 Report Securities Daily B244 Shanghai Securities News60 etc.
2024-27 11 May 2024 Announcement on Reply to the Inquiry Letter on 2023 Annual Report from the Securities Daily B129-B131 Shanghai SecuritiesShenzhen Stock Exchange News 137-139 etc.
2024-28 21 May 2024 Announcement on the Progress of Provision of Security for External Parties Securities Daily B2 Shanghai Securities News81 etc.
2024-29 1 June 2024 Announcement on Resolutions of the 27th Meeting of the 10th Board of Directors Securities Daily B36 Shanghai Securities News17 etc.
2024-30 1 June 2024 Notice on Holding the 2023 Annual General Meeting of Shareholders Securities Daily B36 Shanghai Securities News17 etc.
2024-31 25 June 2024 Announcement on Resolutions of the 2023 Annual General Meeting of Securities Daily B56 Shanghai Securities NewsShareholders 41 etc.
2024-32 26 June 2024 Announcement on Progress of Guarantee Provision for Wholly-owned Securities Daily B15 Shanghai Securities NewsSubsidiaries 76 etc.
XIV Significant Events of Subsidiaries
□ Applicable √ Not applicable
49Konka Group Co. Ltd. Interim Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Shares as
as dividen
dividen d
Shares Percentag New d convert Percentae (%) issues convert ed Other Subtotal Shares ge (%)
ed from
from capital
profit reserve
s
1. Restricted shares 0 0.00% 0 0.00%
2. Unrestricted shares 2407945408 100.00% 2407945408 100.00%
2.1 RMB-denominated
ordinary shares 1596593800 66.31% 1596593800 66.31%
2.2 Domestically listed
foreign shares 811351608 33.69% 811351608 33.69%
3. Total shares 2407945408 100.00% 2407945408 100.00%
Reasons for the share changes:
□ Applicable √ Not applicable
Approval of the share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of 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
50Konka Group Co. Ltd. Interim Report 2024
III Shareholders and Their Holdings as at the Period-End
Unit: share
Number of ordinary shareholders 84245 Number of preferred shareholders with resumed voting rights (if any) 0
5% or greater ordinary shareholders or top 10 ordinary shareholders (exclusive of shares lent in refinancing)
Restric Shares in
Shareh pledge
Nature of olding Total ordinary
Increase/decr ted Unrestricted marked or
Name of shareholder shareholder percent shares held at
ease in the ordinar
the period-end Reporting y
ordinary frozen
age Period shares shares held Stat Sh
held us ares
OVERSEAS CHINESE TOWN State-owned
HOLDINGS COMPANY legal person 21.75% 523746932 0 0 523746932
CITIC SECURITIES BROKERAGE Foreign legal
(HONG KONG) CO. LTD. person 7.48% 180001110 0 0 180001110
GUOYUAN SECURITIES Foreign legal
BROKER (HK) CO. LTD. person 2.47% 59456543 -250300 0 59456543
HOLY TIME GROUP LIMITED Foreign legalperson 2.38% 57289100 0 0 57289100
GAOLING FUND L.P. Foreign legalperson 1.21% 29037555 -16329128 0 29037555
Domestic
WANG JINGFENG natural 1.06% 25625800 -44374200 0 25625800
person
Domestic
ZHANG SUFEN natural 1.06% 25500000 10400000 0 25500000
person
Foreign
NAM NGAI natural 0.83% 20000000 -3000000 0 20000000
person
CHINA MERCHANTS State-owned
SECURITIES (HK) LIMITED legal person 0.82% 19837520 -28000 0 19837520
BOCOM INTERNATIONAL Foreign legal
SECURITIES LIMITED person 0.78% 18896037 0 0 18896037
Strategic investor or general legal person becoming a top-10 ordinary shareholder due to rights issue (if any) N/A
Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first majority
shareholder Overseas Chinese Town Holdings Company (OCT Group) holds 180001110 and
Related or acting-in-concert parties 18360000 ordinary shares in the Company respectively through CITIC Securities Brokerage
among the shareholders above (Hong Kong) Co. Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment
Limited and OCT Group are parties acting in concert. Other than that it is unknown whether the
other shareholders are related parties or acting-in-concert parties or not.Explain if any of the shareholders above was involved in entrusting/being entrusted with voting rights or
waiving voting rights N/A
Special account for share repurchases (if any) among the top 10 shareholders (see note 11) None
Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and locked up shares of senior management)
Name of shareholder Unrestricted ordinary Shares by type
51Konka Group Co. Ltd. Interim Report 2024
shares held at the
period-end Type Shares
OVERSEAS CHINESE TOWN
HOLDINGS COMPANY 523746932 RMB-denominated ordinary stock 523746932
CITIC SECURITIES BROKERAGE
(HONG KONG) CO. LTD. 180001110 Domestically listed foreign stock 180001110
GUOYUAN SECURITIES BROKER
(HK) CO. LTD. 59456543 Domestically listed foreign stock 59456543
HOLY TIME GROUP LIMITED 57289100 Domestically listed foreign stock 57289100
GAOLING FUNDL.P. 29037555 Domestically listed foreign stock 29037555
WANG JINGFENG 25625800 RMB-denominated ordinary stock 25625800
ZHANG SUFEN 25500000 RMB-denominated ordinary stock 25500000
NAM NGAI 20000000 Domestically listed foreign stock 20000000
CHINA MERCHANTS SECURITIES
(HK) LIMITED 19837520 Domestically listed foreign stock 19837520
BOCOM INTERNATIONAL
SECURITIES LIMITED 18896037 Domestically listed foreign stock 18896037
Related or acting-in-concert parties Happy Bloom Investment Limited a wholly-owned subsidiary of the Company’s first majority
among top 10 unrestricted ordinary shareholder Overseas Chinese Town Holdings Company (OCT Group) holds 180001110 and
shareholders as well as between top 10 18360000 ordinary shares in the Company respectively through CITIC Securities Brokerage
unrestricted ordinary shareholders and (Hong Kong) Co. Ltd. and China Merchants Securities (HK) Limited. Happy Bloom Investment
top 10 shareholders Limited and OCT Group are parties acting in concert. Other than that it is unknown whether theother shareholders are related parties or acting-in-concert parties or not.Top 10 ordinary shareholders involved
in securities margin trading (if any) (see Wang Jingfeng holds 25500000 A-shares in the Company through his securities account for
note 4) customer credit trading guarantee in Guotai Junan Securities Co. Ltd.
5% or greater shareholders top 10 shareholders and Top 10 unrestricted shareholders involved in
refinancing shares lending
□ Applicable √ Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares
lending/return compared with the prior period
□ 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.□ Yes √ No
No such cases in the Reporting Period.IV Change in Shareholdings of Directors Supervisors and Senior Management
□Applicable √ Not applicable
52Konka Group Co. Ltd. Interim Report 2024
No changes occurred to the shareholdings of the directors supervisors and senior management in
the Reporting Period. See the 2023 Annual Report for more details.V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
53Konka Group Co. Ltd. Interim Report 2024
Part VIII Preference Shares
□ Applicable √ Not applicable
No Preference shares in the Reporting Period.
54Konka Group Co. Ltd. Interim Report 2024
Part IX Bonds
√ Applicable □ Not applicable
I Enterprise Bonds
□ Applicable √ Not applicable
No enterprise bonds in the Reporting Period.II Corporate Bonds
√ Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB’0000
Bonds
Name Abbr. Code Issue date Valuedate Due date
balance Interest Way of Trade
(RMB’00 rate redemption place
00)
Interests
shall be paid
Privately placed every year
corporate bonds in 2021 21 9 July 9 July 9 July and the Shenzhen
of Konka Group Co. Konka 133040 2021 2021 2024 80000 3.95% principals Stock
Ltd (Tranche III) 03 shall be Exchange
repaid when
expired.Interests
Corporate bonds shall be paid
publicly offered to every year
professional investors in 22 Shenzhen
2022 of Konka Group Konka 149987
14 July 14 July 14 July
2022202220251200003.23%
and the
principals Stock
Co. Ltd. (Tranche I) 01 shall be Exchange
(Variety I) repaid when
expired.Interests
Privately placed shall be paid
corporate bonds to
professional investors in 22 8 8 8
every year
and the Shenzhen
2022 of Konka Group Konka 133306 Septembe Septembe Septembe 60000 3.30% principals Stock
Co. Ltd (Tranche I) 03 r 2022 r 2022 r 2025 shall be Exchange
(Variety I) repaid when
expired.Interests
Privately placed shall be paid
corporate bonds to 22 18 18 18 every year Shenzhen
professional investors in Konka 133333 October October October 60000 3.50% and the Stock
2022 of Konka Group 05 2022 2022 2025 principalsshall be ExchangeCo. Ltd (Tranche II) repaid when
expired.Privately placed 24 133759 29 29 29 150000 4.00% Interests ShenzhenJanuary January January shall be paid Stock
55Konka Group Co. Ltd. Interim Report 2024
corporate bonds to Konka 2024 2024 2027 every year Exchange
professional investors in 01 and the
2024 of Konka Group principalsshall be
Co. Ltd (Tranche I) repaid when
expired.Interests
Privately placed shall be paid
corporate bonds to
24 every year
professional investors in
Konka 133782 18 March 18 March 18 March
Shenzhen
40000. 4.00% and the Stock
2024 of Konka Group 2024 2024 2027 principals
02
Co. Ltd (Tranche II) shall be
Exchange
(Variety I) repaid whenexpired.Interests
Privately placed shall be paid
corporate bonds to
24 every year
professional investors in
Konka 133783 18 March 18 March 18 March
Shenzhen
20242024202740000.4.03%
and the
2024 of Konka Group principals
Stock
03 Exchange
Co. Ltd (Tranche II) shall be
(Variety II) repaid whenexpired.“21 Konka 03” “22 Konka 03” “22 Konka 05” “24 Konka 01” “24 Konka 02” and “24Konka 03” were placed privately to professional investors meeting the requirements of
management method for investors eligibility of Shenzhen Stock Exchange which not
Appropriate arrangement of the investors (if any) exceeding 200 persons. “22 Konka 01” was offered publicly to professional institutional
investors meeting the requirements of Measures for the Administration of Issuing and
Trading Corporate Bonds and opening a qualified A-share securities account in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.“21 Konka 03” “22 Konka 03” “22 Konka 05” “24 Konka 01” “24 Konka 02” and “24Konka 03”: negotiate-and-deal click-and-deal inquire-and-deal and bid-and-deal
Applicable trade mechanism
“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 applicableOCT Group provides full unconditional and irrevocable joint liability guarantee for “21 Konka
03” “22 Konka 01” “22 Konka 03” “22 Konka 05” “24 Konka 01” “24 Konka 02” and “24
56Konka Group Co. Ltd. Interim Report 2024Konka 03”. The guarantees redemption plans and other redemption security measures during the
Reporting Period were executed according to agreement. No change occurred. And there is no
significant impact on the 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
The Company followed the new
development strategy of "One
Axis Two Wheels and Three
1. In the first half of 2024 the Company actively adjusted its
Growth Drivers" and adhered
sales strategy for its domestic color TV business and
to long-term value-oriented
optimized the product structure. Despite the year-over-year
principles as well as the
increase in the revenue and gross profit and the gradual
operational strategy of focusing
improvement of the operations the Company's color TV
on the long term and improving
business still suffered a deficit due to the limited room for
specialization to become
reduction of necessary expenses and the continuously
stronger. It also deepened
intensifying competition in the industry.integration for specialization
During the 2. In the first half of 2024 due to the changes in the prices of
and implemented lean
Reporting the trading financial assets held by the Company the
management to promote high-
Period the Company's net loss on changes in fair value was
quality development. The
Net profit Company's net approximately RMB-175 million which affected the net
Company will allocate resources
attributabl loss attributable profit attributable to its shareholders.to support the development of
e to to its 3. In the first half of 2024 based on the principle of
its core business focusing on
sharehold shareholders prudence the Company set aside provisions for asset
driving the growth and
ers of the was RMB1088 impairment of approximately RMB255 million in accordance
profitability of the white goods
Company million with accounting policies and estimates resulting in a
and PCB sectors. Lean
accounting for decrease in profit.management will be
23.89% of the 4. In the first half of 2024 the Company's semiconductor
implemented to enhance value
net assets. business was still at the initial phase of industrialization. In
creation and reduce losses in the
spite of the heavy investment efficient large-scale
colour TV business. Innovation
production had not been achieved which affected the
efforts will be directed towards
Company's overall operating profit.capitalization and efficiency
5. The Company focused on two lines of business
output of the semiconductor
"consumer electronics + semiconductor" and with the
business thereby creating a
industrial development needs taken into account strategically
specialized business matrix. The
reduced the investment intensity hence a year-on-year
loss for the reporting period will
decline in related income.not affect the normal production
and operation of the Company
and the repayment of debts due.
57Konka Group Co. Ltd. Interim Report 2024
VI The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB’0000
Item 30 June 2024 31 December 2023 Change
Current ratio 90.81% 87.69% 3.56%
Debt/asset ratio 86.45% 83.51% 2.94%
Quick ratio 70.07% 70.07% 0.00%
H1 2024 H1 2023 Change
Net profit before exceptional
gains and losses -110307.86 -89159.44 -23.72%
EBITDA/debt ratio -2.98% 1.19% -4.17%
Interest cover (times) -3.54 -0.11 -3118.18%
Cash-to-interest cover (times) -0.24 0.76 -131.58%
EBITDA-to-interest cover
(times) -2.34 0.89 -362.92%
Debt repayment ratio (%) 100.00% 100.00% 0.00%
Interest payment ratio (%) 100.00% 100.00% 0.00%
58Konka Group Co. Ltd. Interim Report 2024
Part X Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor
□ Yes √ No
The interim financial statements of the Company have not been audited by an independent auditor.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Konka Group Co. Ltd. 30 June 2024
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 5514370579.43 6506359577.02
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 294937209.31 469636700.78
Derivative financial assets
Notes receivable 301987637.11 533171949.15
Accounts receivable 1856961440.23 1726545973.08
Accounts receivable financing 203279738.30 173396326.14
Prepayments 139219299.00 165454311.51
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 829528634.29 989121067.51
Including: Interest receivable 7770148.68 6681258.01
Dividends receivable 14705644.62 941482.38
Financial assets purchased under resale agreements
Inventories 3404537028.08 3249897700.98
Including: Data resource
Contract assets 2712594.37 2190385.93
Assets held for sale
Current portion of non-current assets
Other current assets 2361815002.60 2359159468.75
Total current assets 14909349162.72 16174933460.85
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 5500299082.95 5566483863.29
Investments in other equity instruments 23841337.16 23841337.16
Other non-current financial assets 1985908473.73 2009676398.00
Investment property 1516938003.43 1470226723.87
Fixed assets 5050425327.42 5218297745.16
Construction in progress 844964613.42 860899498.68
Productive living assets
Oil and gas assets
59Konka Group Co. Ltd. Interim Report 2024
Right-of-use assets 199746862.53 197054423.17
Intangible assets 1044478407.72 1087386015.34
Including: Data resource
Development costs
Including: Data resource
Goodwill 22196735.11 22196735.11
Long-term prepaid expense 490136795.26 518919223.71
Deferred income tax assets 1439587794.69 1426573982.16
Other non-current assets 1296144671.61 1248328806.16
Total non-current assets 19414668105.03 19649884751.81
Total assets 34324017267.75 35824818212.66
Current liabilities:
Short-term borrowings 6510087630.95 6390592056.27
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 981928381.95 990482927.20
Accounts payable 2940551760.72 2726831675.97
Advances from customers 311664.91
Contract liabilities 326016727.91 527975160.12
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 198487964.48 304733103.63
Taxes payable 51565332.83 214417135.87
Other payables 1762366179.22 1922791905.14
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 3600939407.57 5314147396.36
Other current liabilities 46276463.29 54330715.75
Total current liabilities 16418531513.83 18446302076.31
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 7205788337.63 7779150079.88
Bonds payable 4796908712.83 2426992578.67
Including: Preferred shares
Perpetual bonds
Lease liabilities 165941212.56 160218818.92
Long-term payables 4957346.58 6135734.07
Long-term employee benefits payable 4661069.67 4718466.37
Provisions 323500578.73 304519839.80
Deferred income 408691107.22 425135237.90
Deferred income tax liabilities 139226712.39 185026165.27
Other non-current liabilities 205172360.96 179996351.33
Total non-current liabilities 13254847438.57 11471893272.21
Total liabilities 29673378952.40 29918195348.52
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
60Konka Group Co. Ltd. Interim Report 2024
Capital reserves 521710300.12 526499506.76
Less: Treasury stock
Other comprehensive income -14125068.08 -13443558.44
Specific reserve 6615537.36 4657488.24
Surplus reserves 1244180364.24 1244180364.24
General reserve
Retained earnings 386980133.30 1474561975.85
Total equity attributable to owners of the Company as the
parent 4553306674.94 5644401184.65
Non-controlling interests 97331640.41 262221679.49
Total owners’ equity 4650638315.35 5906622864.14
Total liabilities and owners’ equity 34324017267.75 35824818212.66
Legal representative: Cao Shiping
CFO: Nie Yong
Head of the financial department: Ping Heng
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 3694617771.19 4739026071.80
Held-for-trading financial assets 294937209.31 469636700.78
Derivative financial assets
Notes receivable 222896079.58 212545745.69
Accounts receivable 3106912552.06 2907508425.51
Accounts receivable financing 642758.36
Prepayments 5424580131.75 3050914644.86
Other receivables 8002724273.44 7962523971.43
Including: Interest receivable 7098359.12 6325400.49
Dividends receivable 410736627.52 395209709.13
Inventories 299147504.71 74359735.29
Including: Data resource
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 1838906798.09 1776247847.16
Total current assets 22885365078.49 21192763142.52
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 8332374129.98 8353187518.14
Investments in other equity instruments 17940215.36 17940215.36
Other non-current financial assets 396353137.96 396353137.96
Investment property 877638798.38 896398058.58
Fixed assets 397097652.85 408039474.28
Construction in progress 11367352.75 10456702.05
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 40888560.99 44546041.59
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense 39527817.85 43352655.77
Deferred income tax assets 1186943851.11 1186943851.11
61Konka Group Co. Ltd. Interim Report 2024
Other non-current assets 43471716.30 42958066.97
Total non-current assets 11343603233.53 11400175721.81
Total assets 34228968312.02 32592938864.33
Current liabilities:
Short-term borrowings 2422190833.33 2344154349.99
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 49606194.38 83813428.75
Accounts payable 6941296340.84 6459535317.41
Advances from customers
Contract liabilities 1760530391.45 943718573.19
Employee benefits payable 33454862.51 65273780.70
Taxes payable 7818682.23 9069845.15
Other payables 4393887450.33 3471748973.76
Including: Interest payable
Dividends payable
Liabilities directly associated with assets held for sale
Current portion of non-current liabilities 3452517761.24 5206842165.89
Other current liabilities 10393884.82 9728362.56
Total current liabilities 19071696401.13 18593884797.40
Non-current liabilities:
Long-term borrowings 5981642333.84 6655411621.10
Bonds payable 4796908712.83 2426992578.67
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions 201328037.54 201607949.06
Deferred income 42136017.50 40966821.50
Deferred income tax liabilities 26128671.60 69803544.47
Other non-current liabilities 46390412.64 45682878.82
Total non-current liabilities 11094534185.95 9440465393.62
Total liabilities 30166230587.08 28034350191.02
Owners’ equity:
Share capital 2407945408.00 2407945408.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 329941716.72 341229750.75
Less: Treasury stock
Other comprehensive income -1399371.64 -1399371.64
Specific reserve
Surplus reserves 1260024039.76 1260024039.76
Retained earnings 66225932.10 550788846.44
Total owners’ equity 4062737724.94 4558588673.31
Total liabilities and owners’ equity 34228968312.02 32592938864.33
3. Consolidated Income Statement
Unit: RMB
Item H1 2024 H1 2023
1. Revenue 5412530372.47 10472061171.94
Including: Operating revenue 5412530372.47 10472061171.94
Interest income
Insurance premium income
Handling charge and commission income
62Konka Group Co. Ltd. Interim Report 2024
2. Costs and expenses 6381475426.88 11506953501.55
Including: Cost of sales 5009969615.02 10079343784.11
Interest expense
Handling charge and commission expense
Surrenders
Net insurance claims paid
Net amount provided as insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 64692935.11 42718966.53
Selling expense 495376454.26 558536665.53
Administrative expense 315946020.02 390244567.77
R&D expense 214578026.81 237033893.11
Finance costs 280912375.66 199075624.50
Including: Interest expense 407018728.71 432772700.64
Interest income 116244724.79 123908981.38
Add: Other income 56768387.57 137917215.41
Return on investment (“-” for loss) 5047444.22 826829010.88
Including: Share of profit or loss of joint ventures and
associates -41296057.12 -30242661.05
Income from the derecognition of financial assets at
amortized cost (“-” for loss) -1728018.83
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -179800523.76 -132580077.43
Credit impairment loss (“-” for loss) -163079433.18 -140192679.36
Asset impairment loss (“-” for loss) -92012866.95 -15283496.76
Asset disposal income (“-” for loss) 590329.38 64713.62
3. Operating profit (“-” for loss) -1341431717.13 -358137643.25
Add: Non-operating income 15773523.89 17325617.18
Less: Non-operating expense 6155804.84 4326608.02
4. Profit before tax (“-” for loss) -1331813998.08 -345138634.09
Less: Income tax expense -51275843.13 -16710667.58
5. Net profit (“-” for net loss) -1280538154.95 -328427966.51
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net
loss) -1280538154.95 -328427966.51
5.1.2 Net profit from discontinued operations (“-” for
net loss)
5.2 By ownership
5.2.1 Net profit attributable to shareholders of the
Company as the parent (“-” for loss) -1087581842.55 -193240232.33
5.2.2 Net profit attributable to non-controlling interests
(“-” for loss) -192956312.40 -135187734.18
6. Other comprehensive income net of tax -2253474.92 -2932583.82
Attributable to owners of the Company as the parent -681509.64 4837.39
6.1 Items that will not be reclassified to profit or loss
6.1.1 Changes caused by remeasurements on defined
benefit schemes
6.1.2 Other comprehensive income that will not be
reclassified to profit or loss under the equity method
6.1.3 Changes in the fair value of investments in other
equity instruments
6.1.4 Changes in the fair value arising from changes in
own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit or loss -681509.64 4837.39
6.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method -83919.23
63Konka Group Co. Ltd. Interim Report 2024
6.2.2 Changes in the fair value of investments in other
debt obligations
6.2.3 Other comprehensive income arising from the
reclassification of financial assets
6.2.4 Credit impairment allowance for investments in
other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the translation of foreign
currency-denominated financial statements -597590.41 4837.39
6.2.7 Other
Attributable to non-controlling interests -1571965.28 -2937421.21
7. Total comprehensive income -1282791629.87 -331360550.33
Attributable to owners of the Company as the parent -1088263352.19 -193235394.94
Attributable to non-controlling interests -194528277.68 -138125155.39
8. Earnings per share
8.1 Basic earnings per share -0.4517 -0.0803
8.2 Diluted earnings per share -0.4517 -0.0803
Legal representative: Cao Shiping
CFO: Nie Yong
Head of the financial department: Ping Heng
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Operating revenue 915335790.52 671342472.97
Less: Cost of sales 909780380.96 682543280.18
Taxes and surcharges 8494960.13 2825863.63
Selling expense 50967849.89 120609233.66
Administrative expense 93947054.64 136536029.86
R&D expense 13571658.64 15002427.03
Finance costs 216389535.25 158153694.90
Including: Interest expense 378248970.66 415373817.97
Interest income 153071010.77 181172038.86
Add: Other income 7605313.33 45777006.94
Return on investment (“-” for loss) 32020268.53 749413182.91
Including: Share of profit or loss of joint ventures and
associates 9290355.87 -17573675.23
Income from the derecognition of financial assets at
amortized cost (“-” for loss) -152875.26
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) -174699491.47 -145356925.98
Credit impairment loss (“-” for loss) -12086636.46 -22515556.31
Asset impairment loss (“-” for loss) -5180066.67 -5669387.21
Asset disposal income (“-” for loss) -110.13 18634.76
2. Operating profit (“-” for loss) -530156371.86 177338898.82
Add: Non-operating income 2512547.44 1209609.70
Less: Non-operating expense 593962.79 2143784.68
3. Profit before tax (“-” for loss) -528237787.21 176404723.84
Less: Income tax expense -43674872.87 64758360.48
4. Net profit (“-” for net loss) -484562914.34 111646363.36
4.1 Net profit from continuing operations (“-” for net
loss) -484562914.34 111646363.36
4.2 Net profit from discontinued operations (“-” for net
loss)
5. Other comprehensive income net of tax
5.1 Items that will not be reclassified to profit or loss
5.1.1 Changes caused by remeasurements on defined
benefit schemes
5.1.2 Other comprehensive income that will not be
64Konka Group Co. Ltd. Interim Report 2024
reclassified to profit or loss under the equity method
5.1.3 Changes in the fair value of investments in other
equity instruments
5.1.4 Changes in the fair value arising from changes in
own credit risk
5.1.5 Other
5.2 Items that will be reclassified to profit or loss
5.2.1 Other comprehensive income that will be
reclassified to profit or loss under the equity method
5.2.2 Changes in the fair value of investments in other
debt obligations
5.2.3 Other comprehensive income arising from the
reclassification of financial assets
5.2.4 Credit impairment allowance for investments in
other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the translation of foreign
currency-denominated financial statements
5.2.7 Other
6. Total comprehensive income -484562914.34 111646363.36
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
services 4267852047.59 10257069599.77
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 139455404.70 114042516.44
Cash generated from other operating activities 210684546.43 434232897.74
Subtotal of cash generated from operating activities 4617991998.72 10805345013.95
Payments for commodities and services 3502746057.91 9023089761.99
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 862103567.56 961152003.48
Taxes paid 226961849.89 267360124.35
Cash used in other operating activities 465518888.49 755293229.37
Subtotal of cash used in operating activities 5057330363.85 11006895119.19
Net cash generated from/used in operating activities -439338365.13 -201550105.24
2. Cash flows from investing activities:
Proceeds from disinvestment 28078887.19 889008792.86
65Konka Group Co. Ltd. Interim Report 2024
Return on investment 17454288.86 102906034.84
Net proceeds from the disposal of fixed assets
intangible assets and other long-lived assets 1648546.24 5504209.67
Net proceeds from the disposal of subsidiaries and other
business units 18818889.67
Cash generated from other investing activities 23144979.61 429959598.68
Subtotal of cash generated from investing activities 70326701.90 1446197525.72
Payments for the acquisition of fixed assets intangible
assets and other long-lived assets 383427125.49 541154096.54
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 2127401.00 471154667.83
Subtotal of cash used in investing activities 385554526.49 1012308764.37
Net cash generated from/used in investing activities -315227824.59 433888761.35
3. Cash flows from financing activities:
Capital contributions received 391891.90 600000.05
Including: Capital contributions by non-controlling
interests to subsidiaries 391891.90 600000.05
Borrowings raised 9415119545.51 6347967876.40
Cash generated from other financing activities 354016478.39 270299841.72
Subtotal of cash generated from financing activities 9769527915.80 6618867718.17
Repayment of borrowings 9327233269.01 5423409343.95
Interest and dividends paid 270910689.62 417032889.60
Including: Dividends paid by subsidiaries to non-
controlling interests 126628.99 735000.00
Cash used in other financing activities 720237854.70 486741862.16
Subtotal of cash used in financing activities 10318381813.33 6327184095.71
Net cash generated from/used in financing activities -548853897.53 291683622.46
4. Effect of foreign exchange rates changes on cash and
cash equivalents 7010247.78 44134367.10
5. Net increase in cash and cash equivalents -1296409839.47 568156645.67
Add: Cash and cash equivalents beginning of the period 5674784349.55 5461912010.90
6. Cash and cash equivalents end of the period 4378374510.08 6030068656.57
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of
services 1602584444.18 1612906405.48
Tax rebates 34492177.78 33601449.43
Cash generated from other operating activities 71344066.52 125639407.49
Subtotal of cash generated from operating activities 1708420688.48 1772147262.40
Payments for commodities and services 2021282615.27 1685690002.69
Cash paid to and for employees 113835388.28 163714700.87
Taxes paid 22683808.32 6158152.38
Cash used in other operating activities 161079943.22 258237321.10
Subtotal of cash used in operating activities 2318881755.09 2113800177.04
Net cash generated from/used in operating activities -610461066.61 -341652914.64
2. Cash flows from investing activities:
Proceeds from disinvestment 7873623.97 377895533.73
Return on investment 13490000.00 45984167.78
Net proceeds from the disposal of fixed assets
intangible assets and other long-lived assets 20138.36 463991.29
Net proceeds from the disposal of subsidiaries and other
business units
Cash generated from other investing activities 3388426673.22 2247236977.19
Subtotal of cash generated from investing activities 3409810435.55 2671580669.99
66Konka Group Co. Ltd. Interim Report 2024
Payments for the acquisition of fixed assets intangible
assets and other long-lived assets 17759814.73 64727368.50
Payments for investments 13000000.00 77400000.00
Net payments for the acquisition of subsidiaries and
other business units
Cash used in other investing activities 3417504221.91 1822125825.03
Subtotal of cash used in investing activities 3448264036.64 1964253193.53
Net cash generated from/used in investing activities -38453601.09 707327476.46
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 7632107916.66 5060000000.00
Cash generated from other financing activities 5179636847.74 4539539207.19
Subtotal of cash generated from financing activities 12811744764.40 9599539207.19
Repayment of borrowings 8221706940.23 3708306940.22
Interest and dividends paid 289317772.25 439526690.78
Cash used in other financing activities 4969550553.21 5451482339.89
Subtotal of cash used in financing activities 13480575265.69 9599315970.89
Net cash generated from/used in financing activities -668830501.29 223236.30
4. Effect of foreign exchange rates changes on cash and
cash equivalents 3479996.51 6131671.92
5. Net increase in cash and cash equivalents -1314265172.48 372029470.04
Add: Cash and cash equivalents beginning of the period 4263319288.76 3833613544.22
6. Cash and cash equivalents end of the period 2949054116.28 4205643014.26
67Konka Group Co. Ltd. Interim Report 2024
7. Consolidated Statements of Changes in Owners’ Equity
H1 2024
Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Other equity G
instruments Less: en O
Item Pre Per Tre Other er t Non-controlling
Share capital ferr pet Ot Capital reserves asur comprehensive Specific reserve Surplus reserves alre Retained earnings
h Subtotal interests Total owners’ equity
ed ual he y income e
sha bon r stoc se r
res ds k rve
1. Balance as at the end of the
period of prior year 2407945408.00 526499506.76 -13443558.44 4657488.24 1244180364.24 1474561975.85 5644401184.65 262221679.49 5906622864.14
Add: Adjustment for change in
accounting policy
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of the
Reporting Period 2407945408.00 526499506.76 -13443558.44 4657488.24 1244180364.24 1474561975.85 5644401184.65 262221679.49 5906622864.14
3. Increase/ decrease in the period
(“-” for decrease) -4789206.64 -681509.64 1958049.12 -1087581842.55 -1091094509.71 -164890039.08 -1255984548.79
3.1 Total comprehensive income -681509.64 -1087581842.55 -1088263352.19 -194528277.68 -1282791629.87
3.2 Capital increased and reduced
by owners -4789206.64 -4789206.64 29083500.46 24294293.82
3.2.1 Ordinary shares increased by
owners 391891.90 391891.90
3.2.2 Capital increased by holders
of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other -4789206.64 -4789206.64 28691608.56 23902401.92
3.3 Profit distribution
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to general
reserve
3.3.3 Appropriation to owners (or
shareholders)
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or share
capital) from capital reserves
3.4.2 Increase in capital (or share
capital) from surplus reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined benefit
schemes transferred to retained
earnings
3.4.5 Other comprehensive
income transferred to retained
earnings
68Konka Group Co. Ltd. Interim Report 2024
3.4.6 Other
3.5 Specific reserve 1958049.12 1958049.12 554738.14 2512787.26
3.5.1 Increase in the period 2537402.71 2537402.71 589725.35 3127128.06
3.5.2 Used in the period 579353.59 579353.59 34987.21 614340.80
3.6 Other
4. Balance as at the end of the
Reporting Period 2407945408.00 521710300.12 -14125068.08 6615537.36 1244180364.24 386980133.30 4553306674.94 97331640.41 4650638315.35
H1 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity O
Item instruments Less: Other Spec Gene t Non-controlling
Share capital Prefer Perp O Capital reserves Treasuetual ry comprehensive
ific
reser Surplus reserves
ral
reser Retained earnings
h
e Subtotal interests
Total owners’ equity
red th income
shares bond er stock ve ve rs
1. Balance as at the end of the
period of prior year 2407945408.00 365247361.05 -14265181.63 1244180364.24 3637291770.33 7640399721.99 820973239.93 8461372961.92
Add: Adjustment for change in
accounting policy 1576234.17 1576234.17 136147.01 1712381.18
Adjustment for correction of
previous error
Other adjustments
2. Balance as at the beginning of
the Reporting Period 2407945408.00 365247361.05 -14265181.63 1244180364.24 3638868004.50 7641975956.16 821109386.94 8463085343.10
3. Increase/ decrease in the period
(“-” for decrease) 72867671.02 4837.39 -192680226.89 -119807718.48 -139649988.36 -259457706.84
3.1 Total comprehensive income 4837.39 -193240232.33 -193235394.94 -138125155.39 -331360550.33
3.2 Capital increased and reduced
by owners 72867671.02 72867671.02 -789832.97 72077838.05
3.2.1 Ordinary shares increased by
owners 600000.03 600000.03
3.2.2 Capital increased by holders
of other equity instruments
3.2.3 Share-based payments
included in owners’ equity
3.2.4 Other 72867671.02 72867671.02 -1389833.00 71477838.02
3.3 Profit distribution -735000.00 -735000.00
3.3.1 Appropriation to surplus
reserves
3.3.2 Appropriation to general
reserve
3.3.3 Appropriation to owners
(or shareholders) -735000.00 -735000.00
3.3.4 Other
3.4 Transfers within owners’
equity
3.4.1 Increase in capital (or
share capital) from capital reserves
3.4.2 Increase in capital (or
share capital) from surplus reserves
3.4.3 Loss offset by surplus
reserves
3.4.4 Changes in defined benefit
schemes transferred to retained
earnings
69Konka Group Co. Ltd. Interim Report 2024
3.4.5 Other comprehensive
income transferred to retained
earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other 560005.44 560005.44 560005.44
4. Balance as at the end of the
Reporting Period 2407945408.00 438115032.07 -14260344.24 1244180364.24 3446187777.61 7522168237.68 681459398.58 8203627636.26
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024
Unit: RMB
H1 2024
Other equity instruments O
Item Less:
t
Share capital Preferre Perpetua Capital reserves Treasury Other comprehensive SpecificOther income reserve Surplus reserves Retained earnings
h Total owners’ equity
d shares l bonds stock er
1. Balance as at the end of the period of prior year 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
Add: Adjustment for change in accounting policy
Adjustment for correction of previous error
Other adjustments
2. Balance as at the beginning of the Reporting
Period 2407945408.00 341229750.75 -1399371.64 1260024039.76 550788846.44 4558588673.31
3. Increase/ decrease in the period (“-” for
decrease) -11288034.03 -484562914.34 -495850948.37
3.1 Total comprehensive income -484562914.34 -484562914.34
3.2 Capital increased and reduced by owners -11288034.03 -11288034.03
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other equity
instruments
3.2.3 Share-based payments included in owners’
equity
3.2.4 Other -11288034.03 -11288034.03
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or
shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital) from
capital reserves
3.4.2 Increase in capital (or share capital) from
surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income transferred
to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
70Konka Group Co. Ltd. Interim Report 2024
3.6 Other
4. Balance as at the end of the Reporting Period 2407945408.00 329941716.72 -1399371.64 1260024039.76 66225932.10 4062737724.94
H1 2023
Unit: RMB
H1 2023
Other equity instruments O
Less: tItem Share capital Preferred Perpetua Capital reserves Treasury Other comprehensive SpecificOther income reserve Surplus reserves Retained earnings
h Total owners’ equity
shares l bonds stock er
1. Balance as at the end of the period of prior
year 2407945408.00 241044390.55 -1500000.00 1260024039.76 1306066395.60 5213580233.91
Add: Adjustment for change in accounting
policy
Adjustment for correction of previous error
Other adjustments -6088070.45 -6088070.45
2. Balance as at the beginning of the Reporting
Period 2407945408.00 241044390.55 -1500000.00 1260024039.76 1299978325.15 5207492163.46
3. Increase/ decrease in the period (“-” for
decrease) 72867671.02 111646363.36 184514034.38
3.1 Total comprehensive income 111646363.36 111646363.36
3.2 Capital increased and reduced by owners 72867671.02 72867671.02
3.2.1 Ordinary shares increased by owners
3.2.2 Capital increased by holders of other
equity instruments
3.2.3 Share-based payments included in
owners’ equity
3.2.4 Other 72867671.02 72867671.02
3.3 Profit distribution
3.3.1 Appropriation to surplus reserves
3.3.2 Appropriation to owners (or
shareholders)
3.3.3 Other
3.4 Transfers within owners’ equity
3.4.1 Increase in capital (or share capital)
from capital reserves
3.4.2 Increase in capital (or share capital)
from surplus reserves
3.4.3 Loss offset by surplus reserves
3.4.4 Changes in defined benefit schemes
transferred to retained earnings
3.4.5 Other comprehensive income
transferred to retained earnings
3.4.6 Other
3.5 Specific reserve
3.5.1 Increase in the period
3.5.2 Used in the period
3.6 Other
4. Balance as at the end of the Reporting Period 2407945408.00 313912061.57 -1500000.00 1260024039.76 1411624688.51 5392006197.84
71Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Notes to the Financial Statements of Konka Group Co. Ltd.For the Year from 1 January 2024 to 30 June 2024
(All amounts in RMB yuan unless otherwise stated)
I. Company Profile
1. Establishment
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 China Shenzhen Special Economic Zone
Branch. On 29 August 1995 the Company was renamed to “Konka Group Co. Ltd.” (Credibility
code: 914403006188155783) with its main business electronic industry. And now the headquarters
locates in No. 28 of No. 12 of Keji South Rd. 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 30 June 2024 the Company has issued a total of 2407945408.00 shares
(denomination of RMB1 per share) with a registered capital of RMB2407945408.00.
3. The nature of the company's business and main operating activities
The Group 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 contained herein have been approved for issue by the Board of
Directors of the Company on 29 August 2024.II. Consolidation scope
The Company has a total of 111 subsidiaries included in the consolidation scope including
Shenzhen Konka Electronics Technology Co. Ltd. Anhui Konka Electronic Co. Ltd. and
Dongguan Konka Electronic Co. Ltd. The consolidation scope of the Company for the Reporting
Period decreased by 5 households including Konka Huanjia Environmental Technology Co. Ltd.Shenzhen Wankaida Science and Technology Co. Ltd. etc. due to losing control for bankruptcy
and liquidation of subsidiaries or cancellation compared to the same period of last year.For details please refer to Note 8 “Changes in the consolidation scope” and Note 9 "Equity in
72Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Other Entities".A check list of corporate names and their abbreviations mentioned in this Report
No. Corporate name Abbreviation
1 Shenzhen Konka Electronics Technology Co. Ltd. Electronics Technology
2 Nantong Haimen Konka Smart Technology Co. Ltd. Haimen Konka
3 Chengdu Konka Smart Technology Co. Ltd. Chengdu Konka Smart
4 Chengdu Konka Electronic Co. Ltd. Chengdu Konka Electronic
5 Nantong Hongdin Smart Technology Co. Ltd. Nantong Hongdin
6 Shenzhen Kangcheng Technology Innovation and DevelopmentCo. Ltd. Shenzhen Kangcheng
7 Xiaojia Technology Co. Ltd. Xiaojia Technology
8 Liaoyang Kangshun Smart Technology Co. Ltd. Liaoyang Kangshun Smart
9 Liaoyang Kangshun Renewable Resources Co. Ltd. Liaoyang Kangshun Renewable
10 Nanjing Konka Electronics Co. Ltd. Nanjing Konka
11 Chuzhou Konka Precision Intelligent Manufacturing TechnologyCo. Ltd. Chuzhou Konka
12 GuangDong XingDa HongYe Electronic Co. Ltd. XingDa HongYe
13 Shenzhen Konka Circuit Co. Ltd. Konka Circuit
14 Suining Konka Flexible Electronic Technology Co. Ltd. Konka Flexible Electronic
15 Suining Konka Hongye Electronics Co. Ltd. Konka Hongye Electronics
16 Boluo Konka Precision Technology Co. Ltd. Boluo Precision
17 Boluo Konka PCB Co. Ltd. Boluo Konka
18 Anhui Konka Tongchuang Electrical Appliances Co. Ltd. Anhui Tongchuang
19 Jiangsu Konka Smart Electrical Appliances Co. Ltd. Jiangsu Konka Smart
20 Anhui Konka Electrical Appliance Technology Co. Ltd. Anhui Electrical Appliance
21 Henan Frestec Refrigeration Appliance Co. Ltd. Frestec Refrigeration
22 Henan Frestec Electrical Appliances Co. Ltd. Frestec Electrical Appliances
23 Henan Frestec Household Appliances Co. Ltd. Frestec Household Appliances
24 Henan Frestec Smart Home Technology Co. Ltd. Frestec Smart Home
73Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
25 Shenzhen Konka Investment Holdings Co. Ltd. Konka Investment
26 Yibin Konka Technology Park Operation Co. Ltd. Yibin Konka Technology Park
27 Shenzhen Konka Capital Equity Investment Management Co. Ltd. Konka Capital
28 Konka Suiyong Investment (Shenzhen) Co. Ltd. Konka Suiyong
29 Shenzhen Konka Shengxing Industrial Co. Ltd. Shengxing Industrial
30 Shenzhen Konka Zhitong Technology Co. Ltd. Zhitong Technology
31 Konka Electronic Material Technology (Shenzhen) Co. Ltd. Konka Electronic Material
32 Beijing Konka Electronic Co. Ltd. Beijing Konka Electronic
33 Tianjin Konka Technology Co. Ltd. Tianjin Konka
34 Suining Konka Industrial Park Development Co. Ltd. Suining Konka Industrial Park
35 Suining Konka Electronic Technological Innovation Co. Ltd. Suining Electronic TechnologicalInnovation
36 Shanghai Konka Industrial Co. Ltd. Shanghai Konka
37 Yantai Kangjin Technology Development Co. Ltd. Yantai Kangjin
38 Shenzhen Konka Mobile Interconnection Technology Co. Ltd. Mobile Interconnection
39 Sichuan Konka Smart Terminal Technology Co. Ltd Sichuan Konka
40 Yibin Konka Smart Technology Co. Ltd. Yibin Smart
41 Shenzhen KONSEMI Co. Ltd. Shenzhen KONSEMI
42 Chongqing Konka Technology Development Co. Ltd. Chongqing Konka
43 Kowin Memory Technology (Shenzhen) Co. Limited Kowin Memory (Shenzhen)
44 Kowin Memory Technology (Hong Kong) Co. Limited Kowin Memory (Hong Kong)
45 Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd. Konka Xinyun Semiconductor
46 Konka Cross-border (Hebei) Technology Development Co. Ltd. Konka Cross-border (Hebei)
47 Shenzhen Nianhua Enterprise Management Co. Ltd. Shenzhen Nianhua
48 Konka Huazhong (Hunan) Technology Co. Ltd. Konka Huazhong
49 Shenzhen Wankaida Science and Technology Co. Ltd. Wankaida
50 Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd. Shenzhen Chuangzhi ElectricalAppliances
74Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
51 Suining Jiarun Property Co. Ltd. Suining Jiarun Property
52 Anhui Konka Electronic Co. Ltd. Anhui Konka
53 Anhui Kangzhi Trade Co. Ltd. Kangzhi Trade
54 Shenzhen Konka Telecommunications Technology Co. Ltd. Telecommunication Technology
55 Konka Mobility Co. Limited Konka Mobility
56 Dongguan Konka Electronic Co. Ltd. Dongguan Konka
57 Suining Konka Smart Technology Co. Ltd. Suining Konka Smart
58 Chongqing Konka Optoelectronic Technology Co. Ltd. Chongqing OptoelectronicTechnology
59 Yibin Kangrun Environmental Technology Co. Ltd. Yibin Kangrun
60 Yibin Kangrun Medical Waste Centralized Treatment Co. Ltd. Yibin Kangrun Medical
61 Ningbo Khr Electric Appliance Co. Ltd. Ningbo Khr Electric Appliance
62 Jiangxi Konka New Material Technology Co. Ltd. Jiangxi Konka
63 Jiangxi High Transparent Substrate Material Technology Co. Ltd. Jiangxi High TransparentSubstrate
64 Jiangxi Xinfeng Microcrystalline Jade Co. Ltd. Xinfeng Microcrystalline
65 Konka Huanjia Environmental Technology Co. Ltd. Konka Huanjia
66 Konka Huanjia (Henan) Environmental Technology Co. Ltd. Konka Huanjia (Henan)
67 Shanxi Konka Intelligent Appliance Co. Ltd. Shanxi Konka Intelligent
68 Shenzhen Konka Pengrun Technology & Industry Co. Ltd. Pengrun Technology
69 Jiaxin Technology Co. Ltd. Jiaxin Technology
70 Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd. Konka Ronghe
71 Shenzhen Konka Unifortune Technology Co. Ltd. Konka Unifortune
72 Jiali International (Hong Kong) Limited Jiali International
73 Sichuan Kangjiatong Technology Co. Ltd. Kangjiatong
74 Jiangkang (Shanghai) Technology Co. Ltd. Jiangkang (Shanghai)Technology
75 Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd. Konka Intelligent Manufacturing
76 Hainan Konka Technology Co. Ltd. Hainan Konka Technology
75Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
77 Konka Ventures Development (Shenzhen) Co. Ltd. Konka Ventures
78 Yibin Konka Incubator Management Co. Ltd. Yibin Konka Incubator
79 Yantai Konka Healthcare Enterprise Service Co. Ltd. Yantai Konka
80 Chengdu Anren Konka Cultural and Creative IncubatorManagement Co. Ltd. ChengduAnren
81 Guiyang Konka Enterprise Service Co. Ltd. Konka Enterprise Service
82 Shenzhen Konka Eco-Development Investment Co. Ltd. Konka Eco-Development
83 Konka (Europe) Co. Ltd. Konka Europe
84 Hong Kong Konka Limited Hong Kong Konka
85 Hongdin International Trading Limited Hongdin Trading
86 Konka North America LLC Konka North America
87 Kanghao Technology Co. Ltd. Kanghao Technology
88 Hongdin Invest Development Limited Hongdin Invest
89 Chain Kingdom Memory Technologies Co. Limited Chain Kingdom MemoryTechnologies
90 Chain Kingdom Semiconductor (Shaoxing) Co. Ltd. Chain Kingdom Semiconductor(Shaoxing)
91 Hongjet (Hong Kong) Company Limited Hongjet
92 Chongqing Xinyuan Semiconductor Co. Ltd. Chongqing XinyuanSemiconductor
93 Anlu Konka Industry Operation Service Co. Ltd. Anlu Konka
94 Shenzhen Kanghong Dongsheng Investment Partnership (LimitedPartnership) Kanghong Dongsheng
95 Guizhou Konka New Material Technology Co. Ltd. Guizhou Konka New MaterialTechnology
96 Guangdong Xinwei Semiconductor Co. Ltd. Guangdong Xinwei
97 Guizhou Kanggui Material Technology Co. Ltd. Guizhou Kanggui MaterialTechnology
98 Nantong Kanghai Technology Industry Development Co. Ltd. Nantong Kanghai
99 Chongqing Kangyiyun Business Operation Management Co. Ltd. Chongqing Kangyiyun
100 Jiangxi Konka High-tech Park Operation and Management Co.Ltd. Jiangxi Konka High-tech Park
76Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
No. Corporate name Abbreviation
101 Shangrao Konka Electronic Technology Innovation Co. Ltd. Shangrao Konka ElectronicTechnology Innovation
102 Guizhou Konka New Energy Material Technology Co. Ltd. Guizhou Konka New Energy
103 Zhejiang Konka Electronics Co. Ltd. Zhejiang Konka Electronic
104 Zhejiang Konka Technology Industry Development Co. Ltd. Zhejiang Konka TechnologyIndustry
105 Xi'an Konka Intelligent Appliance Co. Ltd. Xi'an Konka Intelligent
106 Xi'an Konka Network Technology Co. Ltd. Xi'an Konka Network
107 Xi'an Kanghong TechnologyXi'an Kanghong Technology Industry Development Co. Ltd.
Industry
108 Xi'an Konka IntelligentXi'an Konka Intelligent Technology Development Co. Ltd.
Technology
109 Anhui Konka Low Carbon Technology Co. Ltd. Anhui Konka Low Carbon
110 Shenzhen Kanghong Xintong Investment Partnership (Limited Kanghong Xintong
Partnership)
111 Songyang Konka Smart Industry Operation Management Co. Ltd. Songyang Industry Operation
112 Shenzhen Kangyan Technology Co. Ltd. Kangyan Technology
113 Konka Photovoltaic Technology Co. Ltd. Konka Photovoltaic Technology
114 Songyang Konka Intelligent Technology Development Co. Ltd. Songyang Konka Intelligent
115 Konka North China (Tianjin) Technology Co. Ltd. Konka North China
116 Shenzhen Konka Digital Technology Development Co. Ltd. Digital Technology
III. 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").
77Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2. Going-concern
The Group has evaluated its ability to continue as a going concern for 12 months since the end of
the Reporting Period and has not found any matters or situations that raise significant doubts
about its ability to continue as a going concern. Therefore the financial statements are presented
on a going concern basis.IV. Important Accounting Policies and Estimations
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 Group are in compliance with in compliance with the
Accounting Standards for Business Enterprises which factually accurately and completely
present the Group’s financial positions on 30 June 2024 business results and cash flows and other
relevant information for H1 2024.
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 Group adopted RMB as the bookkeeping base currency.
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:
78Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Location of
Disclosures involving disclosure of this
Methodology for determining materiality criteria
materiality standard matter in the notes to
and basis for selection
judgments the present financial
statements
Significant individually bad Note VI-4. Accounts
Individual amount exceeding RMB50000000
debt provisioned receivables receivable (2)
Receivables with significant
amount of bad debt provision Note VI-4. Accounts
Individual amount exceeding RMB10 million
recovered or reversed during receivable (3)
the period
Significant write-offs of
Note VI-4. Accounts
receivables during the period Individual amount exceeding RMB10 million
receivable (4)
Write-offs
Significant accounts payable Note VI-26. Accounts
Individual amount exceeding RMB10 million
aged over 1 year payable
Significant receipts in advance Note VI-27;
and contractual Note VI-28;
liabilities/projected Individual amount exceeding RMB10 million
Note VI-31;
liabilities/other payables aged
Note VI-39
over 1 year
Note VI-16.Significant construction in Increase or decrease in a single asset during the year
Construction in
progress project or a balance exceeding RMB0.1 billion
progress (2)
6. Accounting Treatment Methods for Business Combinations under the Same Control or
not under the Same Control
(1) Business Combinations under the Same 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
79Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
under the same control shall be measured on the basis of their carrying value in the final
controlling party on the combining date. As for the balance between the carrying value of the net
assets obtained and the carrying value of the consideration paid by it (or aggregate nominal
amount of shares issued) the capital reserve shall be adjusted. If the capital reserve is not
sufficient to be offset the retained earnings shall be adjusted.
(2) Business Combinations not under the Same 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 balance that the combined cost greater than the fair value share of the
identifiable net assets of the purchased party obtained in the combination shall be recognized as
goodwill; When the merger cost is less than the fair value share of the identifiable net assets of the
acquiree acquired in the merger the fair value of all identifiable assets liabilities and contingent
liabilities acquired in the merger and merger costs shall be reviewed first. After review if the
merger cost is still less than the fair value share of the identifiable net assets of the acquiree
acquired in the merger the difference shall be included in the non-operating income of the merger
period.
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
80Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 merger of enterprises 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.The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired if the equity of the invested organization
under the same control is successively obtained through several transactions and eventually the
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
the same control is acquired step by step through multiple transactions and finally form the
business combination when preparing the consolidated statement it shall be deemed as the
adjustment is made in the current state when the final controlling party starts to control. And when
compiling the comparative report the assets and liabilities of the merged party shall be merged
into the comparative statement of the consolidated financial statements of the consolidated Group
without any earlier than the time when the Group and the merged party are under the control of the
ultimate controlling party and the combined net increased assets shall be adjusted to the relevant
items under owners' equity in the comparative statements. In order to avoid the re-calculation of
the net assets value of the merged party the long-term equity investment held by the Group before
the merger the confirmed relevant profit and loss on the same party with the Group and the
merged party on the date of acquisition of the original equity from the final control date to the
merger date and changes of other comprehensive income and other net assets shall offset the
beginning retained earnings and current profits and losses of the comparative statement period
respectively.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.The treatment method of supplementary disclosure in consolidated financial statement for the
Reporting Period when the controlling right is acquired if the equity of the invested organization
not under the same control is successively obtained through several transactions and eventually the
81Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
enterprise merger is conducted. For example: At the occasion of the equity of the investee under
different control is acquired step by step through multiple transactions and eventually form the
business combination when preparing the consolidated statement the equity of the investee held
before the purchase date is re-measured according to the fair value of the equity on the purchase
date and the difference between the fair value and its book value is included in the current
investment income. The equity of the acquiree held before the relevant purchase date involves
other comprehensive income under the equity method and other changes in owner's equity other
than net profit and loss other comprehensive income and profit distribution which are converted
into investment profit and loss in the current period of the purchase date except for other
comprehensive income arising from the remeasurement of defined benefit plans's net liabilities or
changes in net assets by the investee.The Group partially disposes of long-term equity investments in subsidiaries without losing
control when preparing the consolidated financial statements the difference between the disposal
price and the share of net assets that the subsidiaries have continuously calculated since the date of
purchase or the date of consolidation is corresponding to the disposal of long-term equity
investments. The capital premium or equity premium is adjusted. If the capital reserve is
insufficient to offset the retained earnings are adjusted.If the Group loses control over the investee due to the disposal of some equity investments and
other reasons the remaining equity shall be re-measured at its fair value on the date of loss of
control when preparing the consolidated financial statements. The difference between the sum of
the consideration obtained from the disposal of equity and the fair value of the remaining equity
minus the share of the net assets of the original subsidiary calculated on the basis of the original
shareholding ratio and continuously calculated from the date of purchase or merger is included in
the investment profit and loss of the current period when the control right is lost and goodwill is
offset. Other comprehensive income related to the original subsidiary's equity investment etc.will be transferred to the current investment profit and loss when the control right is lost.If the Group disposes of the equity investment in a subsidiary Group step by step through multiple
transactions until the loss of control right if the transactions of the disposal of the equity
investment in a subsidiary Group until the loss of control right belong to a package transaction the
transactions shall be treated as transactions of the disposal of the subsidiary Group and the loss of
control right for accounting. However the difference between the disposal price and the share of
the subsidiary's net assets corresponding to the disposal investment before the loss of control right
is recognized as other comprehensive income in the consolidated financial statements and is
transferred to the investment profit and loss of the current period when the control right is lost.
8. Classification of Joint arrangements and Accounting Treatment of Joint Operations
82Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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
In the Group’s understanding the cash in the cash flow statement includes cash on hand and
deposits that can be used for cover the cash equivalents in the cash flow statement include high
circulating investments held within three months which are easily convertible into known amount
of cash and whose risks in change of value are minimal.
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 profits
and losses.
(2) Translation of foreign currency financial statement
The asset and liability items in foreign currency balance sheet were converted at the spot exchange
rate on balance sheet date; except for “undistributed profit” owner’s equity items were converted
at the sport exchange rate at the time of business occurrence; income and expenditure items in
income statement were converted at the average exchange rate for the period (monthly average
exchange rate) of the transaction occurrence date. 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
83Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(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.The Company's financial assets (or a portion of a financial asset or a part of a group of similar
financial assets) shall be derecognized when meeting any of the following conditions meaning
they are removed from the accounts and the balance sheet:1) The right to receive cash flows from
the financial asset expires; 2) The financial asset is transferred and the Group has transferred
substantially all risks and rewards of ownership of the financial asset; 3) The financial asset is
transferred and the Group has neither transferred nor retained substantially all risks and rewards
of ownership and has not retained 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 carrying 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
The Group classifies the financial assets into financial assets measured at amortized cost financial
assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets
management and characteristics of contractual cash flow of 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 initially measured at fair
value and relevant transaction cost shall be included into the initial recognized amount and
subsequently measured at amortized cost. Except for those designated to be hedge items the
84Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 classified the financial assets meeting the following conditions at the same time as
financial assets at fair value through other comprehensive income: * The Business mode for
managing financial assets of the Group takes contract cash flow collected as target and selling as
target. * 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 as for these financial
assets except for gains or losses on credit impairment exchange gain and loss and interest of
financial assets measured at actual interest rate other gains or losses generated shall be recorded
into other comprehensive income. When derecognized the accumulated gains and losses
originally recorded into other comprehensive income shall be transferred out into 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-transactional investment in equity instruments as financial assets at fair
value through other comprehensive income. Those designated non-transactional investment in
equity instruments by the Group is initially measured at fair value and relevant transaction cost
shall be recorded into the initial recognized amount. 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.
85Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
The Group classifies financial assets not belonging to above two as financial assets at fair value
through profit or loss which shall be initially measured at fair value and relevant transaction cost
shall be directly recorded into the current profit or loss. Gains or losses arising from these
financial assets shall be 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 shall be classified as the financial asset at fair
value through 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 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 Instrument
The Group needs to confirm that the financial assets subject to the impairment loss are the
financial assets measured based on the amortized cost the debt instrument investment measured
based on the fair value with its variations included into other comprehensive incomes and the lease
outlay receivable mainly including notes receivable account receivable other receivables
investment on creditor’s rights other investments on creditor’s rights and long-term receivables
etc. Besides in respect of the contract assets and partial financial guarantee contract
86Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
corresponding impairment provisions shall be calculated and withdrawn and corresponding credit
impairment losses recognized according to various accounting policies mentioned in this part.
1) Methods for the Recognition of Impairment Provisions
For all mentioned items above the Group shall calculate and withdraw corresponding impairment
provisions and recognize corresponding credit impairment losses according to applicable expected
credit loss measurement methods (general methods or simplified methods) with the expected
credit loss as the basis.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. However for the purchased or original financial assets subject
to the credit impairment the Group shall realize the discounting based on the actual interest rate
subject to the credit adjustment.General methods applied to measure the expected credit loss can be described as: the Group shall
evaluate whether the credit risk of the financial assets (including the contract assets and other
applicable items; the same below) increases remarkably after the initial recognition on the balance
sheet day; if the credit risk increases remarkably after the initial recognition the Group shall
measure the provision for loss based on the specific expected credit loss amount during the entire
period of existence; if not the Group shall measure the provision for loss based on the specific
expected credit loss amount in the following 12 months. While evaluating the expected credit loss
the Group shall take all reasonable and well-founded information into consideration including the
forward-looking information.For the financial instrument of lower credit risk on the balance sheet day the Group shall assume
that its credit risk does not increase remarkably after the initial recognition and corresponding
provision for loss shall be measured according to the expected credit loss in the following 12
months.
2) Standards for Judging Whether the Credit Risk Increases Remarkably after the Initial
Recognition
If any financial assets’ probability of default within the expected period of existence determined
on the balance sheet day is obviously higher than that within the expected period of existence
determined during the initial recognition it shall indicate the remarkable increase of the financial
assets’ credit risk. Unless it is under special circumstances the Group shall adopt various
variations in the default risk in the following 12 months as the reasonable basis for estimating
corresponding variations in the default risk within the entire period of existence and determining
whether the credit risk increases remarkably after the initial recognition.
87Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
3) Combined Method for Evaluating the Expected Credit Risk based on Corresponding
Combination
For the financial assets with remarkably different credit risk the Group shall separately evaluate
its credit risk including the receivables from related parties receivables involved in any dispute
with the other party or any lawsuit and arbitration and receivables with obvious evidence showing
that the debtor cannot fulfill the due payment obligation etc.Except for the financial assets whose credit risk shall be separately evaluated the Group shall
divide these financial assets into different combinations based on the specific risk features on
which basis corresponding credit risks can be evaluated.
4) Accounting Treatment Methods Applied to the Impairment of Financial Assets
At the end of the period the Group shall calculate the expected credit losses of various financial
assets. If the expected credit loss is higher than the carrying amount of its current impairment
provision the difference shall be recognized as the impairment loss; if lower the difference shall
be recognized as the gain from the impairment.
(5) Recognition and measurement of financial assets transfer
The Group derecognizes a financial asset when one of the following conditions is met: * the
rights to receive cash flows from the asset have expired; * the enterprise has transferred its rights
to receive cash flows from the asset to a third party under a pass-through arrangement; or * the
enterprise has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset but has transferred control of the asset.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
88Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 it belongs to the former condition the instrument is
the financial liability of the issuer; if it belongs to the latter condition the instrument is the 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 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) Offsetting financial assets and financial liabilities
89Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
The Group’s financial assets and liabilities shall be separately presented in the balance sheet and
not set off each other. But when meeting the following conditions at the same time the net amount
after offset shall be presented in the balance sheet: (1) The Group has the statutory right to set off
recognized amount which is currently executable; (2) The Group plans to settle with the net
amount or realize the financial asset and pay off the financial liability simultaneously.
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 The Accepter shall be the bank with high credit level and low risks
Trade Acceptance Classified by credit risk of acceptors (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
This portfolio is accounts receivable with aging as the credit risk
Aging Combination
feature.Related party The accounts receivable from the other entities within the consolidation
combination scope
14. Accounts Receivable Financing
The Group’s accounts receivable financing is based on expected credit losses and provision is
90Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
made for depreciation reserves in accordance with the expected credit loss measurement method
for notes receivable.
15. Other Receivables
The Group measures the loss reserves on other receivables in accordance with the following
circumstances: a) For financial assets whose credit risk has not significantly increased since the
initial recognition the Group measures the loss reserves at the amount of expected credit losses
for the next 12 months; b) For financial assets whose credit risk has increased significantly since
the initial recognition the Group measures the loss reserves at an amount equal to the expected
credit losses for the entire period of the financial instrument; c) For financial assets purchased or
originated from credit impairment the Group measures the loss reserves at an amount equal to the
expected credit losses over the entire period of the financial instrument. 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
This portfolio is other receivables with aging as the credit risk feature.Combination
This combination shall regard other receivables of extremely low risk (including
Low Risk
the revolving fund the cash deposit and the guarantee deposit) as the credit risk
Combination
feature.Related party
Other receivables from the other entities within the consolidation scope
combination
16. 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
Combination credit risk characteristics
91Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
17. Inventories
The Group's inventories mainly include raw materials products in process semi-finished products
Products on handand entrusted processing materials.The perpetual inventory method is used for inventories. Inventories are priced at the actual cost at
the time of acquisition; the actual cost of inventories is determined by the weighted average
method when inventories are claimed or issued. Low-value consumables and packaging are
amortized through the one-off charge-off method.The net realizable value of inventories of goods that are used directly for sale such as inventory
goods products in process and materials for sale is determined by the estimated selling price of
the inventory minus estimated sale expenses and related taxes; the net realizable value of
inventories of materials held for production is determined by the estimated selling price of the
finished goods produced minus the estimated costs of completion estimated sale expenses and
related taxes.The inventories with various numbers and low unit price shall be made provisions for
depreciation reserves of inventories according to the category of inventories. For inventories that
are produced and sold in the same region with same or similar end use or purposes and hard to be
measured separately from other items it shall be made merger provisions for falling price of
inventories.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
balance-sheet-date.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 carrying amount; 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. 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 assets.
92Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(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 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 losses and determines that the relevant contract assets cannot be
recovered and the written-off is approved the "contract asset impairment reserve" is debited and
the "contracted asset" is credited based on the approved write-off amount. If the written-off
amount is greater than the provision for loss that has been withdrawn the "asset impairment loss"
is debited based on the difference.
19. Assets Relating to 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.The contract performance cost that is the cost incurred by the Group for the performance of the
contract does not fall within the scope of other accounting standards and meets the following
conditions at the same time as the contract performance cost is recognized as an asset: the cost
and a current or expected contract Directly related including direct labor direct materials
manufacturing expenses clearly the cost borne by the customer and other costs incurred only due
to the contract; this cost increases the Group's future resources for fulfilling its performance
obligations; This cost is expected to be recovered.The contract acquisition cost that is the incremental cost incurred by the Group to obtain the
contract is expected to be recovered and is recognized as an asset as the contract acquisition cost;
if the asset amortization period does not exceed one year it is included in the current profit and
loss when it 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.
93Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(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 the Group determines the impairment loss of assets related to contract costs it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant business accounting standards; then based on their book value
higher than the Group’s transfer and If the difference between the remaining consideration that the
asset-related commodity is expected to obtain and the estimated cost incurred for the transfer of
the relevant commodity the excess shall be provided for impairment and recognized as an 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.
20. Long-term Equity Investments
The Group's long-term equity investments mainly consist of investments in subsidiaries
associated enterprises and joint ventures.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
94Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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
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 prior to the purchase date is a
financial asset designated to be measured at fair value with fluctuations included in other
comprehensive income the cumulative profit or loss on the equity previously recognized in other
comprehensive income shall be transferred from other comprehensive income to the retained
earnings; if the equity is a financial asset measured at fair value and the changes of which are
included in profits and losses of the current period the equity previously recognized as profits and
95Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
losses from the changes in fair value shall not be transferred to investment income. If the equity
held prior to the purchase date is an investment for other equity instruments the changes in fair
value of the equity investment accumulated in other comprehensive income before the purchase
date shall be transferred to the retained earnings.Except for the long-term equity investments acquired through business combination hereinabove
long-term equity investments acquired by paying cash are recorded as investment cost based on
the actual purchase price paid; long-term equity investments acquired by issuing equity securities
are recorded as investment cost based on the fair value of the equity securities issued; long-term
equity investments invested by investors are recorded as investment cost based on the value
agreed in the investment contract or agreement.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.In addition to the above-mentioned long-term equity investment obtained through business
combination the long-term equity investment obtained by paying cash shall be regarded as the
investment cost according to the purchase price actually paid; the long-term equity investment
obtained by issuing equity securities shall be regarded as the investment cost according to the fair
value of issuing equity securities; the long-term equity investment invested by investors shall be
regarded as the investment cost according to the investment contract or agreement The value of
the Group is regarded as the cost of investment.The Group adopts the cost method for investment in subsidiaries and the equity method for
investment in joint ventures and associated enterprises.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. The cash dividends or profits declared to be distributed by the
investee shall be recognized as the current investment income according to the amount that should
be enjoyed.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
96Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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.For disposal of long-term equity investment the difference between the book value and the actual
price shall be included in the current investment income. 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 of loss of joint control or significant influence on the investee due to the disposal of part of
equity investment the remaining equity after disposal shall be accounted according to the relevant
provisions of the recognition and measurement standards of financial instruments and the
difference between the fair value and the book value of the remaining equity on the date of loss of
joint control or significant influence shall be included in the current profits and losses. When the
equity method is terminated the other comprehensive income of the original equity investment
recognized as a result of its accounting with the equity method shall be handled on the same basis
as the investee's direct disposal of the relevant assets or liabilities and carried forward in
proportion. The owner's equity recognized as a result of the changes in the owner's equity of the
investee other than net profit and loss other comprehensive income and profit distribution shall be
carried forward in proportion Transfer to current investment income.If the control over the investee is lost due to the disposal of part of the long-term equity
investment and the residual equity after disposal can jointly control or exert significant influence
on the investee it shall be accounted according to the equity method and the difference between
the book value of the disposal equity and the disposal consideration shall be included in the
investment income and the residual equity shall be regarded as adjusted by the equity method
when it is obtained If the residual equity cannot exercise joint control or exert significant influence
on the investee the accounting treatment shall be carried out according to the relevant provisions
of the recognition and measurement standards of financial instruments. The difference between the
book value of the disposal 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 residual
equity on the day of losing control shall be included in the current profits and losses.
97Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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.
21. 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. Subsequent
expenditures incurred for an investment property is included in the cost of the investment property
when it is probable that economic benefits associated with the investment property will flow to the
Group and the cost can be reliably measured otherwise the expenditure is recognized in profit or
loss in the period in which they are 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 IV. 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
98Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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. If the fixed asset or intangible asset
is changed into investment property measured by adopting the cost pattern whose book value
prior to the change shall be the entry value after the change; if the fixed asset or intangible asset is
changed into investment property measured by adopting the fair value pattern whose fair value on
the date of such change shall be the entry value after the change.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.
22. Fixed Assets
The Group’s fixed assets are tangible assets held for the production of goods provision of services
rental or operation management and have a useful life of more than one year.Fixed assets should be recognized when it is probable that the economic benefits associated with
them will be incorporated into the Group and their cost can be measured reliably. The Group’s
fixed assets include buildings and constructions machinery and equipment electronic equipment
transportation equipment and other equipment.The Group depreciates all fixed assets by straight-line method except for fully depreciated fixed
assets that continue to be used and land that is separately valued. The categorized depreciable lives
estimated net salvage rates and depreciation rates of the Group’s fixed assets are as follows:
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
1 Housing and Straight-line 20-40 5-10.00 2.25-4.75
building depreciation
2 Machinery Straight-line 5-10 5-10.00 9.00-19.00
equipment depreciation
3 Electronic Straight-line 3-5 5-10.00 18.00-31.67
equipment depreciation
4 Transportation Straight-line 3-5 5-10.00 18.00-31.67
99Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Annual
Depreciation Expected net
No. Category Method deprecation
period (year) salvage value (%)
(%)
vehicle depreciation
5 Straight-lineOther equipment 5 5-10.00 18.00-19.00
depreciation
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.
23. Construction in Progress
The cost of construction in progress is determined based on actual project expenditures including
all necessary project expenditures incurred during construction borrowing costs to be capitalized
before the project reaches its predetermined usable state and other related expenses etc.On the date when the construction in progress reaches its intended 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 requirements. Upon
joint acceptance by the Company’s Engineering Department and
units responsible for surveying design construction supervision
Houses and buildings
etc. and government departments such as the Fire Services
Department and the Housing Authority and reaching the
predetermined usable state following process approval it is
transferred to fixed assets.The equipment management department and the equipment
machinery and equipment manufacturer are jointly responsible for the installation and
commissioning of the equipment including hardware debugging
100Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Criteria for carrying forward fixed assets
process conditions debugging etc. Upon completion of debugging
and reaching the predetermined usable state following process
approval it is transferred to fixed assets.
24. Borrowing Costs
The Group capitalizes borrowing costs directly attributable to the acquisition construction or
production of qualifying assets as part of the cost of those assets. Other borrowing costs are
recognized as expenses in the current period. The assets determined by the Group that meet the
conditions for capitalization include: fixed assets investment real estate and inventory that need
more than one year of purchasing construction or production activities to reach the preset usable
or sellable status shall be capitalized when the asset expenditure has occurred the borrowing
costs have occurred and the purchasing construction or production activities necessary for the
asset to reach the preset usable or sellable status have begun; When the acquisition construction or
production of assets that meet the capitalization conditions reach the intended usable or sellable
status capitalization is stopped and the borrowing costs incurred thereafter are included in the
profits and losses of the current period. If there is an abnormal interruption in the acquisition
construction or production of assets that meet the capitalization conditions and the interruption
lasts for more than 3 consecutive months the capitalization of borrowing costs will be suspended
until the acquisition construction or production of assets starts again.During the capitalization period the Group recognizes the amount of borrowing costs capitalized
in each accounting period using the following method: In the case of borrowing special-purpose
borrowings the amount of interest expense actually incurred in the current period less interest
income earned on the unused borrowed funds deposited in the bank or investment income earned
on temporary investments shall be capitalized; in the case of occupying general borrowings the
amount shall be determined on the basis of the weighted average number of asset expenditures for
the portion of accumulated asset expenditures in excess of the special-purpose borrowings
multiplied by the capitalization rate of the general borrowings occupied where the capitalization
rate is calculated and determined on the basis of the weighted average interest rate of the general
The capitalization rate is based on the weighted average interest rate of general borrowings.
25. Right-of-Use Assets
The right-of-use assets refer to the right of the Group as the lessee to use the leased assets during
the lease term.
(1) Initial measurement
After the commencement date of the lease term the Group uses the cost for initial measurement of
101Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
right-of-use assets. The cost includes the following four items: a) The initial measurement amount
of lease liabilities; b) If there is a lease incentive for the lease payment paid on or before the
commencement date of the lease term the relevant amount of the lease incentive already enjoyed
shall be deducted; c) The initial direct expenses incurred are the incremental costs incurred in
reaching the lease; d) The costs 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 in the lease terms except those incurred for the production of inventories.
(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 period of the right-of-use assets the Group follows the
following principles: If the ownership of the leased assets can be reasonably determined when the
lease term expires depreciation shall be accrued within the remaining service life of the leased
assets; if it cannot be reasonably determined that the ownership of the leased asset can be obtained
when the lease term expires depreciation shall be accrued within the shorter of the lease term and
the remaining service life of the leased asset.
(4)Impairment of right-of-use assets
If the right-of-use assets are impaired the Group carries out subsequent depreciation according to
the book value of the right-of-use assets after deducting the impairment loss.
26. Intangible Assets
The Group’s intangible assets include land use rights patented technology and non-proprietary
technology which are measured at actual cost at the time of acquisition. Acquired intangible assets
are stated at actual cost based on the actual price paid and related other expenses. The actual cost
of intangible assets invested by investors is determined at the value agreed in the investment
contract or agreement but if the agreed value in the contract or agreement is not fair the actual
cost is determined at fair value. Intangible assets such as patents acquired in a merger not under
common control but owned by the acquiree but not recognized in its financial statements are
recognized as intangible assets at fair value at the time of initial recognition of the acquiree’s
assets.
102Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(1) Useful life and its determination basis estimation amortization method or review procedure
The Group's intangible assets include land use rights patented technology non-patented
technology etc. measured at the actual cost at the time of acquisition. For purchased intangible
assets the actual cost is determined by the actual payment made and related expenditures. For
intangible assets contributed by investors the actual cost is determined based on the value agreed
upon in the investment contract or agreement; however if the contractually agreed value is not fair
the fair value is used to determine the actual cost. Intangible assets such as patents which are
acquired in a business combination under common control but not recognized in the financial
statements of the acquiree are recognized as intangible assets at their fair value upon initial
recognition of the assets of the acquiree.
(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.
27. 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.
(1) Impairment of non-current assets other than financial assets (except goodwill)
103Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
If the recoverable amount is less than carrying 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. Asset fair value should be determined according to negotiated sales price of fair trade.If no sales agreement exists but with asset active market fair value should be determined
according to the Buyer’s price of the asset. If no sales agreement or asset active market exists
asset fair value could be acquired on the basis of best information available. 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.
(2) Impairment of goodwill
In impairment test carrying value of the business reputation in financial report should be shared to
beneficial asset group and asset group combination in collaboration of business merger. 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 the carrying value of business
reputation of asset group or asset group combination then deduct carrying value of all assets
according to proportions of other carrying value of above assets in asset group or asset group
combination except business reputation.After the asset impairment loss is determined recoverable value amounts would not be returned in
future.
28. Long-term Deferred Expenses
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 and 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
104Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 labor 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
recognised 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 demission welfare
remuneration and liabilities produced from the demission welfare should be determined and
included in current profits and losses when determining the costs of demission welfare and
recombination. However demission 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 recorded 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 (dismission 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
105Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
The Group initially measures the lease obligation at the present value of the lease payments
outstanding at the commencement date of the lease term.
1) Lease payments
Lease payments refer to the amount paid by the Group to the lessor related to the right to use the
leased assets during the lease term including: a) Fixed payment amount and substantial fixed
payment amount. If there is lease incentive deduct the amount related to lease incentive; b) The
variable lease payment amount depending on the index or ratio which is determined according to
the index or ratio on the commencement date of the lease term at the initial measurement; c) When
the Group reasonably determines the exercise price of the purchase option when it will exercise it;
d) The lease term reflects the amount to be paid to exercise the termination option when the Group
will exercise the termination option; e) The amount expected to be paid based on 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: a) The Group's own situation that is the
Company's solvency and credit status; b) The term of "loan" that is the lease term; c) The amount
of "borrowed" funds that is the amount of lease liabilities; d) "Mortgage conditions" that is the
nature and quality of the underlying assets; e) Economic environment including the jurisdiction
where the lessee is located the valuation currency the time when the contract is signed 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 commencement date of the lease term the Group carries out follow-up measurement of
lease liabilities according to the following principles: a) When recognizing the interest of lease
liabilities the Group will increase the carrying amount of lease liabilities; b) When paying the
lease payments the Group will reduce the book amount of the lease liability; c) When the lease
payments changes due to revaluation or lease change the Group will remeasure the book value of
lease liability.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.
106Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(3) Re-measurement
After the commencement date of the lease term the Group re-measures the lease liability based on
the present value of the changed lease payment and adjusts the book value of the right-of-use
assets accordingly when the following circumstances occur. If the carrying 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. a) The actual
fixed payment amount changes (in this case the original rate of discount is used for discount); b)
The estimated amount payable of the residual value changes (in this case the original rate of
discount is used for discount); c) The index or ratio used to determine the lease payment changes
(in this case the revised rate of discount is used for discount); d) The evaluation result of the
purchase option changes (in this case the revised rate of discount is adopted for discount); e) The
evaluation result or actual exercise of the lease renewal option or the lease termination option
changes (in this case the revised rate of discount is adopted for discount).
32. Provisions
The Group should recognize the related obligation as a provision for liability when the obligation
meets the following conditions: (1) That obligation is a present obligation of the enterprise; (2) It
is probable that an outflow of economic benefits from the enterprise will be required to settle the
obligation; (3) A reliable estimate can be made of the amount of the obligation.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.When all or some of the expenses necessary for the liquidation of an 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 carrying value of the estimated
liabilities.
33. Principles of Revenue Recognition and Measurement Method
The revenue of the Group mainly consists of the income from main business and the income from
other businesses.
(1)Revenue recognition principle
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.
107Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
On the starting date of the contract the Group evaluates the contract identifies each individual
performance obligation contained in the contract and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time.When one of the following conditions is met it is a performance obligation within a certain period
of time otherwise it is a performance obligation at a certain point in time:
* The customer obtains and consumes the economic benefits brought by the Group's performance
at the same time the Group performs the contract.* The customer can control the products under construction during the performance of the Group.* The goods produced during the performance of the Group have irreplaceable uses and the
Group has the right to 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 when the customer obtains control of the relevant goods or services. When judging
whether a customer has obtained control of goods or services the Group considers the following
signs:
* The Group enjoys the current right to receive payment for the goods or services.* The Group has transferred the legal ownership of the product to the customer.* The Group has transferred the goods in kind to the customer.* The Group has transferred the main risks and rewards of the ownership of the product to the
customer.* The customer has accepted the goods or services.The Group has transferred goods or services to customers and the right to receive consideration is
listed as contract assets and contract assets are devalued on the basis of expected credit losses.The Group's unconditional right to collect consideration from customers is listed as receivables.The Group’s obligation to transfer goods or services to customers due to the consideration
received from customers is listed as contract liabilities.
(2) Principles of income measurement
108Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
* If the contract contains two or more performance obligations at the beginning of the contract
the Group will allocate the transaction price to each individual performance obligation based on
the relative proportion of the stand-alone selling price of the goods or services promised by each
individual performance obligation. Revenue is measured at the transaction price of each individual
performance obligation.* The transaction price is the amount of consideration that the Group expects to be entitled to
receive due to the transfer of goods or services to customers excluding payments collected on
behalf of third parties and payments expected to be returned to customers. The transaction price
confirmed by the Group does not exceed the amount at which the accumulated confirmed income
will most likely not undergo a significant reversal when the relevant uncertainty is eliminated. It is
expected that the money returned to the customer will not be included in the transaction price as a
liability.* If there is variable consideration in the contract such as cash discounts and price guarantees in
part of the contract between the Group and its customers the Group determines the best estimate
of the variable consideration according to the expected value or the most likely amount but
includes the variable The transaction price of the consideration shall not exceed the amount at
which the accumulated confirmed income is unlikely to be reversed significantly when the
relevant uncertainty is eliminated.* For the consideration payable to customers the Group offsets the transaction price from the
consideration payable to customers and offsets the current income at the time when the relevant
income is recognized and the payment (or promised to pay) the customer consideration is later
unless the consideration payable is for Obtain other clearly distinguishable products from
customers.* For sales with a sales return clause when the customer obtains control of the relevant product
the Group recognizes revenue based on the amount of consideration expected to be received due to
the transfer of the product to the customer and the expected return due to the sales return is
recognized as an estimated liability ; At the same time according to the expected book value of
the returned goods at the time of transfer the balance after deducting the estimated cost of
recovering the goods (including the value impairment of the returned goods) is recognized as an
asset that is the return cost receivable according to the transferred goods The book value at the
time of the transfer deducting the net carry-over cost of the aforementioned asset cost. On each
balance sheet date the Group re-estimates the future sales returns and re-measures the
aforementioned assets and liabilities.* If there is a significant financing component in the contract the Group shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
109Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
goods or services. Using the discount rate that discounts the nominal amount of the contract
consideration into the current commodity price the difference between the determined transaction
price and the amount of the consideration promised in the contract is amortized by the actual
interest method during the contract period. 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.* 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. In a relative proportion part of
the transaction price is allocated to service quality assurance and revenue is recognized 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.* When the construction contract between the Group and the customer is changed: * If the
contract change adds clearly distinguishable construction services and contract prices and the new
contract price reflects the stand-alone selling price of the new construction services the Group
will The contract change shall be treated as a separate contract for accounting treatment; * If the
contract change does not fall into the above-mentioned circumstance * and there is a clear
distinction between the construction services that have been transferred and the construction
services that have not been transferred on the date of the contract change the Group Treat it as the
termination of the original contract and at the same time merge the unfulfilled part of the original
contract and the changed part of the contract into a new contract for accounting treatment; * If the
contract change does not fall into the above situation * and the construction service has been
transferred on the date of contract change There is no clear distinction between the construction
service and the untransferred construction service. The Group accounts for the changed part of the
contract as a component of the original contract. The resulting impact on the recognized revenue
will be adjusted on the date of contract change.
(3) Specific methods of revenue recognition
* Revenue recognized on time
110Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 online advertising
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. Government Grants
The government grants of the Group are divided into asset-based grants related to and income-
based grants. Asset-based grants refer to the government grants for long-term assets obtained by
the purchase construction and other ways. Income-based grants refer to other 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 an income-based government grant as a whole.Current elements of government grants shall be measured based on the amount actually received.Those shall be measured according to the amount receivable are grants paid according to a fixed
quota standard or funds that meet the relevant conditions stipulated by the financial support policy
with conclusive evidence at the end of the year and which are expected as the financial support.Non-monetary elements of the government grants shall be measured at fair value. Those whose
fair value cannot be obtained reliably shall be measured at its nominal amount (RMB1).Asset-based grants shall be used to offset the carrying 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.
111Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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 income 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.
35. Deferred Income Tax Assets/Deferred Income 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 income 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
112Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(or deductible losses) the corresponding deferred income tax assets and deferred income tax
liabilities are not recognized. On the balance sheet date the deferred income tax assets and
deferred income 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 income 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.
36. Leasing
(1) Identification of leases
The term "lease" refers to a contract whereby the lessor transfers the right of use regarding the
leased asset(s) to the lessee within a specified time in exchange for consideration. On the
commencement date of the contract the Group assesses whether the contract is a lease or contains
a lease. If a party to the contract transfers the right allowing the control over the use of one or
more assets that have been identified within a certain period in exchange for 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 commencement date of the lease term 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 "31. 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 the lease changes and the following conditions are met at the same time the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope or extends
the lease term by increasing the right to use one or more leased assets; b) The increased
113Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
consideration is equivalent to the separate price of the expanded lease scope or the extended lease
term adjusted according to the contract conditions.If the lease change is not accounted for as a separate lease on the effective date of the lease
change the Group will allocate the consideration of the changed contract in accordance with the
relevant provisions of the lease standards and re-determine the changed lease term. The revised
rate of discount is used to discount the changed lease payments to remeasure the lease liability.When calculating the present value of the changed lease payments the Group uses the interest rate
implicit in lease as the rate of discount. 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: a) 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. b) 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 lessor classifies the lease as a finance lease and leases other than finance leases as
operating leases.The Group usually classifies a lease that falls under any one or more of the following
circumstances as a finance lease: a) When the lease term expires the ownership of the leased asset
is transferred to the lessee; b) The lessee has the option to purchase the leased asset(s). As the
agreed purchase price is low enough compared with the fair value of the leased asset(s) at the time
the option is expected to be exercised it can be reasonably determined at the inception of the lease
that the lessee will exercise the option; c) Although the ownership of the assets is not transferred
the lease term accounts for most of the service life of the leased assets; d) On the lease
commencement date the present value of lease receipts is almost equivalent to the fair value of
leased assets; e) The leased assets are special in nature and only the lessee can use them without
major renovation. The Group may also classify a lease that falls under any one or more of the
following circumstances as a finance lease: a) If the lessee cancels the lease losses to the lessor
caused by the cancellation will be borne by the lessee; b) The gains or losses arising from the
fluctuation of the fair value of the residual value of assets belong to the lessee; c) The lessee has
114Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
the ability to continue leasing until the next term 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 collection amount refers to the amount that the lessor should collect from
the lessee for transferring the right to use the leased assets during the lease term including: a)
Fixed payment amount and substantial fixed payment amount that the lessee needs to pay. If there
is lease incentive deduct the amount related to lease incentive; b) The variable lease payment
depending on the index or ratio which is determined according to the index or ratio on the
commencement date of the lease term at the initial measurement; c) The exercise price of the
purchase option provided that it is reasonably determined that the lessee will exercise the option;
d) The amount to be paid by the lessee to exercise the option to terminate the lease provided that
the lease term reflects that the lessee will exercise the option to terminate the lease; e) The residual
value of guarantee provided to the lessor by the lessee the party related to the lessee and an
independent third party that has the financial ability to fulfill the guarantee obligation.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 the lease changes and the following conditions are met at the same time the Group will account
for the lease change as a separate lease: a) The lease change expands the lease scope by increasing
the right to use one or more leased assets; b) The increased consideration is equivalent to the
separate price of the expanded lease scope adjusted according to the contract conditions.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
115Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Treatment of rent
The Group recognizes lease receipts from operating leases as rental income on a straight-line basis
during each 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 cost
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 the fixed assets in the assets under operating lease the Group adopts the depreciation policy of
similar assets to calculate and distill depreciation. For other assets under operating lease the
Group amortizes them in a systematic and reasonable manner.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.
37. Changes in Main Accounting Policies and Estimates
(1) Changes of accounting policies
The Ministry of Finance issued the Accounting Standards for Business Enterprises Interpretation
No. 17 (C.K. [2023] No. 21) (hereinafter referred to as “Interpretation No. 17”) on 25 October
2023.
* Since 1 January 2024 the Group starts to implement the regulation of the Interpretation No. 17
issued by the Ministry of Finance regarding the classification of current liabilities and non-current
liabilities which has no impacts on the financial statements of the Company.* Since 1 January 2024 the Group starts to implement the regulation of the Interpretation No.
17 issued by the Ministry of Finance regarding the disclosure of the financing arrangement of
suppliers which has no impacts on the financial instatements of the Company.
116Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
* Since 1 January 2024 the Group starts to implement the regulation of the Interpretation No.
17 issued by the Ministry of Finance regarding the accounting treatment for sale-leaseback
transactions which has no impacts on the financial statements of the Company.
(2) Changes in Accounting Estimates
No such cases in the Reporting Period.V. Taxation
1. Main Taxes and Tax Rate
Category of taxes Basis Specific situation of the taxes rate
Calculated the output tax at
the tax rate and paid the VAT
by the amount after deducting
the deductible withholding
VAT VAT at current period of 1% 3% 5% 6% 9% 13%
which the VAT applicable to
easy collection won’t belong
to the deductible withholding
VAT.Paid at 5% by subsidiaries including:
Dongguan Konka XingDa HongYe
Xinfeng Microcrystalline Boluo Konka
Precision Boluo Konka Ningbo
Kanghanrui Jiangsu Konka Smart Yibin
Kangrun Yibin Kangrun Medical Konka
Ronghe Chain Kingdom Semiconductor
(Shaoxing) Guizhou Kanggui Materials
Zhejiang Konka Electronic Songyang
Konka Intelligent
Urban Paid reduced by half at 7% by subsidiaries
maintenance and The circulating tax actually including: Liaoyang Kangshun Renewable
construction tax paid Zhitong Technology Yibin Smart
Shenzhen Nianhua Anlu Konka Jiangxi
Konka High-tech Park Kanghong Xintong
Paid reduced by half at 5% by subsidiaries
including: Jiangkang (Shanghai)
Technology Guizhou Konka New Material
Guizhou Konka New Energy Zhejiang
Konka Technology Industry
Paid at 1%: Jiangxi Konka Jiangxi High
Transparent Substrate
Paid at 7%: other subsidiaries.Paid reduced by half at 3% by subsidiaries
Education surtax The circulating tax actually including: Liaoyang Kangshun Renewablepaid Zhitong Technology Yibin Smart
Shenzhen Nianhua Anlu Konka Jiangxi
117Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Category of taxes Basis Specific situation of the taxes rate
Konka High-tech Park Kanghong Xintong
Jiangkang (Shanghai) Technology Zhejiang
Konka Technology Industry
Paid at 3%: other subsidiaries.Paid reduced by half at 2% by subsidiaries
including: Liaoyang Kangshun Renewable
Zhitong Technology Yibin Smart
Local education The circulating tax actually Shenzhen Nianhua Anlu Konka Jiangxi
surtax paid Konka High-tech Park Kanghong Xintong
Jiangkang (Shanghai) Technology Zhejiang
Konka Technology Industry
Paid at 2%: other subsidiaries.Enterprise income 25%/ See 2.Tax Preference and Approved
tax Taxable income Documents for details
The main taxpayers of different corporate income tax rates are explained as follows:
Name of entity Income tax rate
Electronics Technology Anhui Konka Anhui
Tongchuang Shanxi Konka Jiangsu Konka
Xinfeng Microcrystalline Boluo Precision 15%
Chengdu Konka Electronic Xiaojia Technology
Hong Kong Konka Hongdin Trading Jiali
International Hongjet Jiaxin Technology Hongdin
Invest Konka Mobility Kowin Memory (Hong 16.5%
Kong)
Chain Kingdom Memory Technologies 16.5%
Konka Europe 15%
Kanghao Technology 22.5%
Konka North America 21%
The Company as the Parent and other subsidiaries 25%
Note: According to regulations of Temporary Provisions of Income Tax of Trans-boundary Tax
Payment Enterprises by State Administration of Taxation resident enterprises without business
establishment or places of legal persons should be tax payment enterprises with the administrativemeasures of income tax of “unified computing level-to-level administration local prepaymentliquidation summary and finance transfer”. It came into force from 1 January 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 1 January 2008 and will be final settled uniformly by the Company
118Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
at the year-end.
2. Tax Preference and Approved Documents
(1) According to the announcement of the State Administration of Taxation No. 12 of 2023: Small
enterprises with small profits shall reduce the taxable income amount by 25% and pay the
corporate income tax at the tax rate of 20% which shall be continued until 31 December 2027.
(2) On 18 October 2022 Anhui Konka a subsidiary of the Company obtained the Certificate of
High-Tech Enterprise jointly issued by the Department of Science and Technology of Anhui
Province the Department of Finance of Anhui Province and the Taxation Bureau of Anhui
Province of the State Administration of Taxation with the certificate number GR202234002272
which is valid for three years. In accordance with the relevant tax regulations Anhui Konka is
entitled to the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the
relevant tax preferential policies on high-tech enterprises and pay enterprise income tax at a
preferential tax rate of 15%.
(3) On 4 November 2022 Xinfeng Microcrystalline a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Jiangxi Province the Department of Finance of Jiangxi Province and the Taxation Bureau of
Jiangxi Province of the State Administration of Taxation with the certificate number
GR202236000999 which is valid for three years. According to the relevant tax regulations
Xinfeng Microcrystalline is entitled to the relevant tax incentives for three consecutive years from
2022 to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay
enterprise income tax at a preferential tax rate of 15%.
(4) On 18 October 2022 Anhui Tongchuang a subsidiary of the Company obtained the
Certificate of High-Tech Enterprise jointly issued by the Department of Science and Technology
of Anhui Province the Department of Finance of Anhui Province and the Taxation Bureau of
Anhui Province of the State Administration of Taxation with the certificate number
GR202234000798 which is valid for three years. In accordance with the relevant tax regulations
Anhui Tongchuang is entitled to the relevant tax incentives for three consecutive years from 2022
to 2024 to enjoy the relevant tax preferential policies on high-tech enterprises and pay enterprise
income tax at a preferential tax rate of 15%.
(5) On 22 December 2022 Boluo Precision a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" 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 (No. GR202244017658) which will be valid for three years.According to relevant tax regulations Boluo Precision enjoys relevant preferential tax policies for
high-tech enterprises for three consecutive years from 2022 to 2024 and pays enterprise income
tax at a reduced rate of 15%.
(6) On 19 December 2022 Electronic Technology a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
119Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Administration of Taxation with the certificate number GR202244205867 which is valid for
three years. In accordance with the relevant tax regulations Electronic Technology is entitled to
the relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(7) On 19 December 2022 Xiaojia Technology a subsidiary of the Company received the
Certificate of High-Tech Enterprise jointly issued by Shenzhen Science and Technology
Innovation Committee Shenzhen Finance Bureau and Shenzhen Taxation Bureau of the State
Administration of Taxation with the certificate number GR202244203274 which is valid for
three years. In accordance with the relevant tax regulations Xiaojia Technology is entitled to the
relevant tax incentives for three consecutive years from 2022 to 2024 to enjoy the relevant tax
preferential policies on high-tech enterprises and pay enterprise income tax at a preferential tax
rate of 15%.
(8) On 29 November 2023 Shanxi Konka a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" 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 (No. GR202361002167) which will be valid for three years. According
to relevant tax regulations Shanxi 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
reduced rate of 15%.
(9) On 6 November 2023 Jiangsu Konka a subsidiary of the Company obtained the "High-tech
Enterprise Certificate" 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 (No. GR202332008044) which will be valid for three years. According
to relevant tax regulations Jiangsu 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
reduced rate of 15%.
(10) In accordance with the Announcement on the Renewal of the Enterprise Income Tax Policy
for Western Development Enterprises (Ministry of Finance General Administration of Taxation
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.
(11) According to the fiscal and taxation document [2011] No. 100 published by the Ministry of
Finance and the State Administration of Taxation 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 part that the actual tax burden on their VAT exceeds 3 will be implemented with the
policy of immediate withdrawal. The Company’s subsidiaries Electronics Technology and Anhui
Tongchuang all enjoy this preferential policy.
120Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
VI. Notes to Major Items in the Consolidated Financial Statements of the
Company
Unless otherwise noted the following annotation project (including the main projects
annotation of the financial statement of the Company) the period-begin refers to 1 January
2024 the period-end refers to 30 June 2024 this period refers to the period from 1 January
2024 to 30 June 2024 and the previous period refers to the period from 1 January 2023 to 30
June 2023. The monetary unit is renminbi.
1. Monetary assets
Item Closing balance Opening balance
Cash on hand 469.28
Bank deposits 4599678470.84 5892986243.07
Other monetary assets 914692108.59 613372864.67
Total 5514370579.43 6506359577.02
Of which: Total amount deposited overseas 64430289.51 55324772.13
Note: The closing balance of other monetary funds is mainly the balance of time deposits margin
deposits and account balance on WeChat Alipay and other platforms. For details of restricted
funds please refer to Note VI-23 Assets with restricted ownership or use right.
2. Held-for-trading financial assets
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 294937209.31 469636700.78
Including: Investment in equity instruments 294937209.31 469636700.78
Total 294937209.31 469636700.78
3. Notes receivable
（1） Classified presentation of notes receivable
Item Closing balance Opening balance
Banker's acceptance 285785824.21 517759367.29
Commercial acceptance draft 16201812.90 15412581.86
Total 301987637.11 533171949.15
（2） Listed by withdrawal methods for provision for bad debts
121Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Provision set aside for
bad debts by the
single item
Provision set aside for
bad debts by portfolio 302325037.03 100.00 337399.92 0.11 301987637.11
Of which: Banker's
acceptance 285785824.21 94.53 285785824.21
Commercial
acceptance draft 16539212.82 5.47 337399.92 2.04 16201812.90
Total 302325037.03 100.00 337399.92 0.11 301987637.11
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Amount Proportion
Provision Carrying value
(%) Amount percentage(%)
Provision set aside for
bad debts by the
single item
Provision set aside for
bad debts by portfolio 533492913.47 100.00 320964.32 0.06 533171949.15
Of which: Banker's
acceptance 517759367.29 97.05 517759367.29
Commercial
acceptance draft 15733546.18 2.95 320964.32 2.04 15412581.86
Total 533492913.47 100.00 320964.32 0.06 533171949.15
Provision for expected credit losses on commercial acceptance draft based on aging in the
portfolio
Closing balance
Name
Book balance Provision for bad debts Provisionpercentage (%)
Within one year 16539212.82 337399.92 2.04
122Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Name
Book balance Provision for bad debts Provisionpercentage (%)
Total 16539212.82 337399.92 2.04
（3） Provision for bad debts of notes receivable set aside recovered or reclassified in
the Reporting Period
Change in the current year
Category Opening Closingbalance Recovery or Charge- balanceProvision reclassification off or Otherswrite-off
Commercial
acceptance draft 320964.32 29365.33 12929.73 337399.92
Banker's
acceptance
Total 320964.32 29365.33 12929.73 337399.92
（4） Notes receivable pledged at the end of the period
Item Amount pledged at the end of the period
Banker's acceptance 135131288.11
Commercial acceptance draft
Total 135131288.11
（5） Notes receivable endorsed or discounted but had not yet matured on the balance
sheet date at the end of the period
Item Amount derecognised at the end Amount not derecognised at theof the period end of the period
Banker's acceptance 1263789633.51
Commercial acceptance draft 13712030.20
Total 1263789633.51 13712030.20
（6） Notes receivable actually written off in the current period
There were no significant write-offs of notes receivable in the current period.
4. Accounts receivable
（1） Accounts receivable listed by aging portfolio
123Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Aging Book balance at the period-end Book balance at the period-begin
Within one year (inclusive) 1398638104.01 1489573102.24
One to two years 347323499.85 152217296.67
Two to three years 181933992.96 131889796.60
Three to four years 232579903.76 265897663.73
Four to five years 286691759.72 674517508.86
Over five years 1028121298.28 894028569.23
Total 3475288558.58 3608123937.33
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Provision set
aside for bad
debts by the 1395605627.86 40.16 1266377364.82 90.74 129228263.04
single item
Provision set
aside for bad
debts by
portfolio
Of which:
Aging portfolio 2079682930.72 59.84 351949753.53 16.92 1727733177.19
Subtotal of
portfolio 2079682930.72 59.84 351949753.53 16.92 1727733177.19
Total 3475288558.58 100.00 1618327118.35 46.57 1856961440.23
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Provision set
aside for bad
debts by the 1601967285.04 44.40 1524090371.01 95.14 77876914.03
single item
124Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Provision set
aside for bad
debts by
portfolio
Of which:
Aging portfolio 2006156652.29 55.60 357487593.24 17.82 1648669059.05
Subtotal of
portfolio 2006156652.29 55.60 357487593.24 17.82 1648669059.05
Total 3608123937.33 100.00 1881577964.25 52.15 1726545973.08
1） Provision set aside for bad debts of accounts receivable by single item
Opening balance Closing balance
Name
Book balance Provision for Provision for
Provision Reasons
bad debts Book balance bad debts percentage for the(%) provision
Shanghai
Huaxin Expected
International 299136676.70 293153943.17 298855950.30 292878831.29 98.00 to be
Group Co. difficult to
Ltd. recover
Hongtu
Sanbao High- Expected
tech 200000000.00 180000000.00 200000000.00 180000000.00 90.00 to be
Technology difficult to
Co. Ltd. recover
Shenzhen Not
Yaode expected to
Technology 145562210.29 145562210.29 146468551.71 146468551.71 100.00 be
Co. Ltd. recoverable
Guangan
Ouqishi Expected
Electronic 113140553.53 110965942.46 113140553.53 110965942.46 98.08 to be
Technology difficult to
Co. Ltd. recover
Zhongfu
Tiangong Expected
Construction 71389096.65 53541822.49 71289096.65 53466822.49 75.00 to be
Group Co. difficult to
Ltd. recover
Gome
Customization Not
(Tianjin) 59569295.02 59569295.02 57021975.73 57021975.73 100.00 expected to
Home be
125Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance Closing balance
Name
Book balance Provision for
Provision Reasons
bad debts Book balance
Provision for
bad debts percentage for the(%) provision
Appliances recoverable
Co. Ltd.CCCC First Not
Harbor
Engineering 55438105.00 55438105.00 65221300.00 65221300.00 100.00
expected to
be
Company Ltd. recoverable
Xingda Not
Hongye (Hk) 51902301.95 51902301.95 51902301.95 51902301.95 100.00 expected to
Limited berecoverable
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
Electric Fuel 50000000.00 50000000.00 49993564.16 49993564.16 100.00 expected to
Co. Ltd. berecoverable
Expected
Others 505130008.20 491063214.97 291013296.13 225564539.37 77.51 to bedifficult to
recover
Total 1601967285.04 1524090371.01 1395605627.86 1266377364.82
2） Provision set aside for bad debts of accounts receivable by portfolio
Closing balance
Aging
Book balance Provision for bad Provision percentagedebts (%)
Within one year 1336869720.64 27272142.13 2.04
One to two years 327253283.46 32790779.07 10.02
Two to three years 111580526.11 25317621.37 22.69
Three to four years 106521040.82 69110851.27 64.88
Four to five years 16541028.26 16541028.26 100.00
Over five years 180917331.43 180917331.43 100.00
Total 2079682930.72 351949753.53 16.92
（3） Provision for bad debts of accounts receivable set aside recovered or reclassified
126Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
in the current period
Change in the current year
Category Opening balance
Provision Recovery orreclassification
Provision for bad debts
of accounts receivable 1881577964.25 50338166.41 24347173.17
Total 1881577964.25 50338166.41 24347173.17
(Continued)
Change in the current year
Category Closing balance
Charge-off or write-off Decrease for otherreasons
Provision for bad debts
of accounts receivable 289241839.14 1618327118.35
Total 289241839.14 1618327118.35
Note: Decreases for other reasons were RMB-1805743.22 due to exchange rate changes and the
decrease by RMB291047582.36 due to the loss of controlling right.
（4） Accounts receivable actually written off in the current period
There are no actually written-off accounts receivable in this period.
（5） Top five accounts receivable and contract assets in the closing balance
categorised by debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the
current period was RMB1446160600.23 accounting for 41.61% of the total closing balance of
accounts receivable. The total closing balance of provision for bad debts correspondingly set aside
was RMB656491796.91.
5. Contract assets
（1） Contract assets
Closing balance Opening balance
Item Provision Provision
Book balance for bad Carrying value Book for bad Carrying
debts balance debts value
Accounts
receivable for
settled items 2769083.68 56489.31 2712594.37 2236000.34 45614.41 2190385.93
that are not
unconditionally
127Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Item Provision Provision
Book balance for bad Carrying value Book for bad Carrying
debts balance debts value
paid
Total 2769083.68 56489.31 2712594.37 2236000.34 45614.41 2190385.93
（2） Classified presentation of contract assets by provisioning methods of bad debts
Closing balance
Category Book balance Provision for bad debts Carrying
Amount Proportion(%) Amount
Provision value
percentage (%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 2769083.68 100.00 56489.31 2.04 2712594.37
Subtotal of portfolio 2769083.68 100.00 56489.31 2.04 2712594.37
Total 2769083.68 100.00 56489.31 2.04 2712594.37
Opening balance
Category Book balance Provision for bad debts Carrying
Amount Proportion Amount Provision value(%) percentage (%)
Provision set aside for
bad debts by the single
item
Provision set aside for
bad debts by portfolio
Of which: Aging
portfolio 2236000.34 100.00 45614.41 2.04 2190385.93
Subtotal of portfolio 2236000.34 100.00 45614.41 2.04 2190385.93
Total 2236000.34 100.00 45614.41 2.04 2190385.93
（3） Provision set aside for bad debts of contract assets by portfolio
Aging Closing balance
128Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Book balance Provision for bad debts Provisionpercentage (%)
Within one year 2769083.68 56489.31 2.04
Total 2769083.68 56489.31 2.04
（4） Provision for bad debts of contract assets set aside recovered or reclassified in
the current period
Item Provision in the
Recovery or Charge-off/Write-
current period reclassification in off in the current Reasonsthe current period period
Accounts receivable
for settled items that
are not 10874.90 Normal provision
unconditionally paid
Total 10874.90
（5） Contract assets actually written off in the current period
There were no contract assets actually written off in the current period.
6. Accounts receivable financing
Item Closing balance Opening balance
Notes receivable 203279738.30 173396326.14
Total 203279738.30 173396326.14
7. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 7770148.68 6681258.01
Dividends receivable 14705644.62 941482.38
Other accounts receivable 807052840.99 981498327.12
Total 829528634.29 989121067.51
7.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 7770148.68 6681258.01
Total 7770148.68 6681258.01
7.2 Dividends receivable
（1） Category of dividends receivable
129Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item (or investee) Closing balance Opening balance
Shenzhen Jielunte Technology Co.Ltd. 941482.38
Chutian Dragon Co. Ltd. 4240444.62
Wuhan Tianyuan Environmental
Protection Co. Ltd. 10465200.00
Total 14705644.62 941482.38
7.3 Other receivables
（1） Other receivables classified by account nature
Nature of fund Book balance at the end of the Book balance at the beginningperiod of the period
Deposit and margin 344926113.50 1234840210.69
Intercourse funds among minority
shareholders in the business consolidation
not under the same control and related 181205407.34 179663586.05
parties
Energy-saving subsidies receivable 152399342.00 152399342.00
Others 2961254595.30 1496129924.02
Total 3639785458.14 3063033062.76
（2） Other receivables listed by aging
Aging Book balance at the end of the Book balance at the beginningperiod of the period
Within one year 69465860.34 253550068.51
One to two years 84541478.76 77519916.42
Two to three years 365391923.70 551521166.18
Three to four years 835835984.39 690507047.29
Four to five years 534137348.24 1092957617.71
Over five years 1750412862.71 396977246.65
Total 3639785458.14 3063033062.76
（3） Classified presentation of other receivables by provisioning methods of bad debts
Closing balance
Book balance Provision for bad debts
Category
Proportion Provision Carrying valueAmount (%) Amount percentage(%)
130Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Book balance Provision for bad debts
Category
Amount Proportion
Provision Carrying value
(%) Amount percentage(%)
Other receivables
of expected credit
losses set aside by 2540492875.97 69.80 2241666571.98 88.24 298826303.99
single item
Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
portfolio:
Of which: Aging
portfolio 961885583.89 26.42 560823547.39 58.30 401062036.50
Low-risk portfolio 137406998.28 3.78 30242497.78 22.01 107164500.50
Subtotal of
portfolio 1099292582.17 30.20 591066045.17 53.77 508226537.00
Total 3639785458.14 100.00 2832732617.15 77.83 807052840.99
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Amount Proportion
Provision Carrying value
(%) Amount percentage(%)
Other receivables
of expected credit
losses set aside by 1960682465.29 64.01 1644122039.53 83.85 316560425.76
single item
Other receivables
of provision for
bad debts set aside
by credit risk
characteristic
portfolio:
Of which: Aging
portfolio 975322848.99 31.84 413933906.39 42.44 561388942.60
Low-risk portfolio 127027748.48 4.15 23478789.72 18.48 103548958.76
Subtotal of
portfolio 1102350597.47 35.99 437412696.11 39.68 664937901.36
Total 3063033062.76 100.00 2081534735.64 67.96 981498327.12
131Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
1） Provision set aside for bad debts of other receivables by portfolio
Closing balance
Aging
Book balance Provision for bad Provision percentagedebts (%)
Within one year 54240251.77 837915.76 1.54
One to two years 56548914.22 2984352.63 5.28
Two to three years 260548432.36 54329136.75 20.85
Three to four years 535245817.07 343779819.69 64.23
Four to five years 58706234.60 55131888.19 93.91
Over five years 134002932.15 134002932.15 100.00
Total 1099292582.17 591066045.17 53.77
2） Provision set aside for bad debts of other receivables by the general expected credit
loss model
Phase I Phase II Phase III
Provision for bad Expected Expected credit loss Expected credit loss
debts credit loss for during the whole during the whole
Total
the next 12 outstanding outstanding
months maturity (without maturity (withcredit impairment) credit impairment)
Balance as of 1
January 2024 1443228.60 435969467.51 1644122039.53 2081534735.64
Balance as of 1
January 2024 in the -756286.95 740212.80 16074.15
current period
-- Transferred to
Phase II -756286.95 756286.95
-- Transferred to
Phase III -16074.15 16074.15
-- Reclassified under
Phase II
-- Reclassified under
Phase I
Provision in the
current period 153571711.07 1541821.29 155113532.36
Recovery in the
current period 1119050.04 -44896.70 16967374.68 18041528.02
132Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Phase I Phase II Phase III
Provision for bad Expected Expected credit loss Expected credit loss
debts Totalcredit loss for during the whole during the whole
the next 12 outstanding outstanding
months maturity (without maturity (withcredit impairment) credit impairment)
Charge-off in the
current period
Write-off in the
current period
Other changes 1270024.15 -98158.67 612954011.69 614125877.17
Balance as at 30 June
2024837915.76590228129.412241666571.982832732617.15
Note: 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 for bad debts of other receivables set aside recovered or reclassified in
the current period
Change in the current period
Categ Opening Char
ory balance ge-off Closing balance
Provision Recovery orreclassification or Otherswrite-
off
Provis
ion for
bad
debts
of 2081534735.64 155113532.36 18041528.02 -614125877.17 2832732617.15
other
receiv
ables
Total 2081534735.64 155113532.36 18041528.02 -614125877.17 2832732617.15
Note: Decreases for other reasons were RMB-1330923.76 due to exchange rate changes and the
decrease by RMB612794944.33 due to the loss of controlling right.
133Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（5） Other receivables actually written off in the current period
There were no other receivables actually written off for the Reporting Period.
（6） Top five other accounts receivable in the closing balance categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the
current year was RMB2986256781.60 accounting for 82.04% of the total closing balance of
other receivables. The total closing balance of provision for bad debts correspondingly set aside
was RMB2370741736.67.
8. Prepayments
（1） Age of prepayments
Closing balance Opening balance
Item
Amount Proportion (%) Amount Proportion (%)
Within one year 85269826.19 61.25 114332392.60 69.10
One to two years 10668862.35 7.66 827985.04 0.50
Two to three years 41876819.11 30.08 46545996.66 28.13
Over three years 1403791.35 1.01 3747937.21 2.27
Total 139219299.00 100.00 165454311.51 100.00
Note: The amount of advanced payments aged over one year at the end of the period is
RMB53949472.81 accounting for 38.75% of the total balance of advanced payments of the
Company and consists mainly of unavailability of funds or unsettled payments.
（2） Top five prepayments in the closing balance categorised by payees
The total amount of prepayments with top five closing balance categorised by payees was
RMB102365394.64 accounting for 73.53% of the total closing balance of prepayments.
9. Inventory
（1） Inventory classification
Closing balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 732595142.46 75967089.52 656628052.94
134Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Semi-finished products 101913886.80 46991125.84 54922760.96
Commodities in stock 2656510493.28 465581487.44 2190929005.84
Commissioned products 2218974.86 212731.64 2006243.22
Development costs 500050965.12 500050965.12
Total 3993289462.52 588752434.44 3404537028.08
(Continued)
Opening balance
Provision for
Item inventory
Book balance impairment/for Carrying value
contract fulfilment
cost impairment
Raw materials 593131602.70 86829664.81 506301937.89
Semi-finished products 96408258.96 41741196.19 54667062.77
Commodities in stock 2636678840.40 490032803.73 2146646036.67
Commissioned products 1934264.95 211225.91 1723039.04
Development costs 540559624.61 540559624.61
Total 3868712591.62 618814890.64 3249897700.98
（2） Inventory falling price reserves and impairment provision of contract
performance costs
Increase in the current year
Item Opening balance
Withdrawal Others
Raw materials 86829664.81 13078363.92
Semi-finished products 41741196.19 9074809.14
Commodities in stock 490032803.73 58956623.28
Commissioned products 211225.91
Total 618814890.64 81109796.34
135Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(Continued)
Decrease in the current year
Item Closing balance
Write-off Others
Raw materials 23902301.61 38637.60 75967089.52
Semi-finished products 3824879.49 46991125.84
Commodities in stock 82450133.39 957806.18 465581487.44
Commissioned products -1505.73 212731.64
Total 110177314.49 994938.05 588752434.44
Specific basis for determining the realisable net value and reasons for inventory falling price
reserves and impairment provision for contract performance costs transferred back or written off
during the Reporting Period:
Item Specific basis for withdrawal of
Reasons for charge-off of provision
inventory falling price reserves for inventories impairment in thecurrent year
Raw materials The realisable net value was lower than They have been sold or used in thethe carrying value current period
Semi-finished products The realisable net value was lower than They have been sold or used in thethe carrying value current period
Commodities in stock The realisable net value was lower than They have been sold in the currentthe carrying value period
10. Other current assets
Item Closing balance Opening balance
Principal and interests of entrusted loans to
associated enterprises 1789416914.11 1744123316.97
Prepayments and deductible taxes and
refund of tax for export receivable 525792569.13 569875346.61
Deferred expenses 31816213.30 28112001.12
Costs receivable for returning goods 14031714.93 15925346.67
Others 757591.13 1123457.38
Total 2361815002.60 2359159468.75
136Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
13. Long-term equity investment
Changes in the current period
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Konka Ventures Development (Shenzhen)
Co. Ltd. 5004579.62 109011.09
Nanjing Zhihuiguang Information
Technology Research Institute Co. Ltd. 2019287.36 22211.40
Feidi Technology (Shenzhen) Co. Ltd. 10706907.72 3224155.07
Shenzhen Kangyue Enterprise Co. Ltd.Foshan Zhujiang Media Creative Park
Cultural Development Co. Ltd.Kangkai Technology Service (Chengdu)
Co. Ltd. 114193.79 10500.00
Puchuang Jiakang Technology Co Ltd. 2716274.71 462390.15
Shenzhen Jielunte Technology Co. Ltd. 94917575.00 -6341750.17
Panxu Intelligence Co. Ltd. 48686477.11 -1154019.69
Orient Excellent (Zhuhai) Asset
Management Co. Ltd. 8198574.99 429295.82
Dongfang Jiakang No.1 (Zhuhai) Private
Equity Investment Fund (LP) 338089300.42 1768886.32 906768.44
137Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Tongxiang Wuzhen Kunyu Venture Capital
Investment Co. Ltd. 3524037.08 1940.11
Shenzhen RF-Llink Technology Co. Ltd.Anhui Kaikai Shijie E-commerce Co. Ltd. 418814414.98 -5828645.96
Kunshan Kangsheng Investment
Development Co. Ltd. 207333483.86 -3336356.30
Shanxi Silk Road Cloud Intelligent Tech
Co. Ltd. 5187588.48 -669600.90
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd.Shenzhen Zhongkang Beidou Technology
Co. Ltd. (formerly named: Shenzhen
Zhongbing Konka Technology Co. Ltd.)
Shenzhen Yaode Technology Co. Ltd.Wuhan Tianyuan Environmental Protection
Co. Ltd. 512729351.11 17245673.07
Chuzhou Konka Technology Industry
Development Co. Ltd. 39335548.57 -4638032.20
Chuzhou Kangjin Health Industrial
Development Co. Ltd. 239037618.98 -3469664.26
138Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Nantong Kangjian Technology Industrial
Park Operations and Management Co. Ltd. 107310029.86
Chuzhou Kangxin Health Industry
Development Co. Ltd. 180752809.79 -1100714.21
Dongguan Guankang Yuhong Investment
Co. Ltd. 501408938.92 -13062060.07
Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Shandong Econ Technology Co. Ltd. 1130575773.36
Dongguan Kangjia New Materials
Technology Co. Ltd.. 6857694.77 2886.15
Chongqing E2info Technology Co. Ltd. 1048983188.06 10939004.61
Yantai Kangyun Industrial Development
Co. Ltd. 65884386.16 -2727492.22
E3info (Hainan) Technology Co. Ltd. 30715678.97
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. Ltd. 7090590.47 -480528.54
Shenzhen KONKA E-display Co. Ltd. 85057438.63 1799918.18
Chongqing Yuanlv Benpao Real Estate 28089915.82 -1351812.31
139Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Co. Ltd.Shenzhen Kangpeng Digital Technology
Co. Ltd. 1770021.01 -345320.82
Yantai Kangtang Construction
Development Co. Ltd. 862394.07 87749.85
Dongguan Konka Smart Electronic
Technology Co. Ltd. 24124143.70 -3070775.78
Shenzhen Aimijiakang Technology Co.Ltd. 1173870.57 -98033.64
Beijing Konka Jingyuan Technology Co.Ltd. 703703.42
Chongqing Liangshan Enterprise
Management Co. Ltd. 178368.53 9427.45
Shenzhen Kangxi Technology Innovation
Development Co. Ltd. 1026306.07 6387.02
Shandong Kangfei Intelligent Electrical
Appliances Co. Ltd. 245911.63
Henan Kangfei Intelligent Electric
Appliance Co. Ltd. 1939694.34 -18408.41
Guangdong Kangyuan Semiconductor Co.Ltd. 9957207.04 -1776663.77
140Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Chongqing Kangyiqing Technology Co.Ltd. 633719.09 -300000.00
Zhejiang Kangying Semiconductor
Technology Co. Ltd. (formally: Shenzhen
Kangying Semiconductor Technology Co. 19339655.22 -1145348.00 -84875.89
Ltd.)
KK Smartech Limited 1612150.56 -8552.93
Chongqing Kangjian Photoelectric
Technology Co. Ltd. 8329131.78 -2160000.00
Anhui Kangta Supply Chain
Management Co. Ltd. 17256599.85 -236863.48
Wuhan Kangtang Information Technology
Co. Ltd. 25757222.60 -848227.42
Sichuan Chengrui Real Estate Co. Ltd. 31708992.07 -3935564.36
Konka Industrial Development (Wuhan)
Co. Ltd. 42134231.89 -1425590.64
Hefei KONSEMI Storage Technology Co.Ltd. 188654285.66 -12222171.62 956.66
Xi'an Kang'an Intelligent Storage
Technology Co. Ltd. 6000000.00 -183110.10
Sichuan Hongxinchen Real Estate 53934595.60
141Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Opening balance Increase in the Decrease in the Cost method to equity Profit or loss of Changes in other
investment investment method investment recognised comprehensiveby the equity method income
Development Co. Ltd.Konka Huanjia Environmental Technology
Co. Ltd.Total 5566483863.29 1768886.32 -36677989.39 -83919.23
(Continued)
Changes in the current period
Closing balance of
Investee Changes in other Cash dividends orprofits declared to Provision set aside
Closing balance the provision for
equities Others impairmentbe distributed for impairment
Konka Ventures Development
(Shenzhen) Co. Ltd. 55392.38 5058198.33
Nanjing Zhihuiguang Information
Technology Research Institute Co. Ltd. 17358.62 2024140.14
Feidi Technology (Shenzhen) Co. Ltd. 13931062.79
Shenzhen Kangyue Enterprise Co. Ltd. 24977328.88
Foshan Zhujiang Media Creative Park
Cultural Development Co. Ltd.Kangkai Technology Service (Chengdu)
Co. Ltd. 124693.79
Puchuang Jiakang Technology Co Ltd. 3178664.86
142Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Changes in other Cash dividends or Closing balance the provision for
equities profits declared to
Provision set aside
be distributed for impairment
Others impairment
Shenzhen Jielunte Technology Co. Ltd. 88575824.83
Panxu Intelligence Co. Ltd. 47532457.42
Orient Excellent (Zhuhai) Asset
Management Co. Ltd. 8627870.81
Dongfang Jiakang No.1 (Zhuhai) Private
Equity Investment Fund (LP) 730916.13 336496266.41
Tongxiang Wuzhen Kunyu Venture
Capital Investment Co. Ltd. 3525977.19
Shenzhen RF-Llink Technology Co. Ltd. 85656027.35
Anhui Kaikai Shijie E-commerce Co.Ltd. 412985769.02
Kunshan Kangsheng Investment
Development Co. Ltd. 7350000.00 196647127.56
Shanxi Silk Road Cloud Intelligent Tech
Co. Ltd. 4517987.58
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd. 12660222.73
Shenzhen Zhongkang Beidou
Technology Co. Ltd. (formerly named:
Shenzhen Zhongbing Konka Technology
Co. Ltd.)
143Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Changes in other Cash dividends or Closing balance the provision for
equities profits declared to
Provision set aside
be distributed for impairment
Others impairment
Shenzhen Yaode Technology Co. Ltd. 214559469.35
Wuhan Tianyuan Environmental
Protection Co. Ltd. -11288034.03 10465200.00 508221790.15
Chuzhou Konka Technology Industry
Development Co. Ltd. 34697516.37
Chuzhou Kangjin Health Industrial
Development Co. Ltd. 235567954.72
Nantong Kangjian Technology Industrial
Park Operations and Management Co. 107310029.86
Ltd.Chuzhou Kangxin Health Industry
Development Co. Ltd. 179652095.58
Dongguan Guankang Yuhong Investment
Co. Ltd. 488346878.85
Shenzhen Morsemi Semiconductor
Technology Co. Ltd.Shandong Econ Technology Co. Ltd. 1130575773.36 81806510.02
Dongguan Kangjia New Materials
Technology Co. Ltd. 6860580.92
Chongqing E2info Technology Co. Ltd. 1059922192.67
144Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Changes in other Cash dividends orprofits declared to Provision set aside
Closing balance the provision for
equities for impairment Others impairmentbe distributed
Yantai Kangyun Industrial Development
Co. Ltd. 63156893.94
E3info (Hainan) Technology Co. Ltd. 4000000.00 26715678.97
Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology Co. 6610061.93
Ltd.Shenzhen KONKA E-display Co. Ltd. 86857356.81
Chongqing Yuanlv Benpao Real Estate
Co. Ltd. 26738103.51
Shenzhen Kangpeng Digital Technology
Co. Ltd. 1424700.19
Yantai Kangtang Construction
Development Co. Ltd. 950143.92
Dongguan Konka Smart Electronic
Technology Co. Ltd. 21053367.92
Shenzhen Aimijiakang Technology Co.Ltd. 1075836.93
Beijing Konka Jingyuan Technology Co.Ltd. 703703.42
Chongqing Liangshan Enterprise
Management Co. Ltd. 187795.98
145Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Changes in other Cash dividends or Closing balance the provision for
equities profits declared to
Provision set aside Others impairment
be distributed for impairment
Shenzhen Kangxi Technology Innovation
Development Co. Ltd. 1032693.09
Shandong Kangfei Intelligent Electrical
Appliances Co. Ltd. 245911.63 245911.63
Henan Kangfei Intelligent Electric
Appliance Co. Ltd. 1921285.93
Guangdong Kangyuan Semiconductor
Co. Ltd. 8180543.27
Chongqing Kangyiqing Technology Co.Ltd. 333719.09
Zhejiang Kangying Semiconductor
Technology Co. Ltd. (formally:
Shenzhen Kangying Semiconductor 18109431.33
Technology Co. Ltd.)
KK Smartech Limited 1603597.63
Chongqing Kangjian Photoelectric
Technology Co. Ltd. 6169131.78
Anhui Kangta Supply Chain
Management Co. Ltd. 17019736.37
Wuhan Kangtang Information
Technology Co. Ltd. 24908995.18
Sichuan Chengrui Real Estate Co. Ltd. 27773427.71
146Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Closing balance of
Investee Changes in other Cash dividends or Provision set aside Closing balance the provision for
equities profits declared to for impairment Others impairmentbe distributed
Konka Industrial Development (Wuhan)
Co. Ltd. 40708641.25
Hefei KONSEMI Storage Technology
Co. Ltd. 6498827.39 182931898.09
Xi'an Kang'an Intelligent Storage
Technology Co. Ltd. 5816889.90
Sichuan Hongxinchen Real Estate
Development Co. Ltd. 53934595.60
Konka Huanjia Environmental
Technology Co. Ltd. 91800000.00
Total -4789206.64 22618867.13 245911.63 5500299082.95 511705469.96
147Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
12. Other equity instrument investments
12.1 Other equity instrument investments
Item Closing balance Opening balance
Shenzhen Tianyilian Science & Technology Co.Ltd.Beijing Huyu Digital Technology Co. Ltd. 5901121.80 5901121.80
Feihong Electronics Co. Ltd.ZAEFI
Shenzhen Chuangce Investment Development
Co. Ltd.Shanlian Information Technology Engineering
Centre 1860809.20 1860809.20
Shenzhen CIU Science & Technology Co. Ltd. 953000.00 953000.00
Shenzhen Digital TV National Engineering
Laboratory Co. Ltd. 7726405.16 7726405.16
Shanghai National Engineering Research Centre
of Digital TV Co. Ltd. 2400000.00 2400000.00
BOHUA UHD 5000001.00 5000001.00
Total 23841337.16 23841337.16
148Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
12.2 Investments in non-trading equity instruments in the current period
Dividend
income Amount of other Reason for assigning to Reason for other
Item recognised in Accumulative Accumulative comprehensive measure in fair value of comprehensive
the current gains losses income transferred to which changes included income transferred
period retained earnings other comprehensive income to retained earnings
Shenzhen Tianyilian Science & Technology Co.Ltd. 4800000.00
Long-term holding based on
strategic purpose
Beijing Huyu Digital Technology Co. Ltd. 98878.20 Long-term holding based onstrategic purpose
Feihong Electronics Co. Ltd. 1300000.00 Long-term holding based onstrategic purpose
ZAEFI 100000.00 Long-term holding based onstrategic purpose
Shenzhen Chuangce Investment Development Co.Ltd. 485000.00
Long-term holding based on
strategic purpose
Shanlian Information Technology Engineering 3139190.80 Long-term holding based onCentre strategic purpose
Shenzhen CIU Science & Technology Co. Ltd. 200000.00 Long-term holding based onstrategic purpose
Shenzhen Digital TV National Engineering 1273594.84 Long-term holding based onLaboratory Co. Ltd. strategic purpose
Shanghai National Engineering Research Centre of Long-term holding based on
Digital TV Co. Ltd. strategic purpose
BOHUA UHD Long-term holding based on
149Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Dividend
income Amount of other Reason for assigning to Reason for other
Item recognised in Accumulative Accumulative comprehensive measure in fair value of comprehensive
the current gains losses income transferred to which changes included income transferred
period retained earnings other comprehensive income to retained earnings
strategic purpose
Total 11396663.84
150Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
13. Other non-current financial assets
Item Closing balance Opening balance
China Asset Management-Jiayi Overseas Designated Plan 200732067.00 200732067.00
Tianjin Huacheng Property Development Co. Ltd. 1000000.00 1000000.00
Tianjin Property No. 8 Enterprise Management Partnership (Limited Partnership) 28540777.26 28540777.26
CCB Trust-Cai Die No. 6 Property Rights Trust Scheme 66080293.70 66080293.70
Daye Trust Co. Ltd. 100000000.00 100000000.00
Yibin OCT Sanjiang Properties Co. Ltd. 199774696.09 199774696.09
Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership (Limited Partnership) 230264035.04 231190200.00
Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment Partnership (Limited Partnership) 198129473.88 201451000.00
Yibin Kanghui Electronic Information Industry Equity Investment Partnership (Limited Partnership) 60292296.39 60292000.00
Chuzhou Jiachen Information Technology Consulting Service Partnership (Limited Partnership) 59700013.59 59700013.59
Yancheng Kangyan Information Industry Investment Partnership (Limited Partnership) 140082317.80 162937428.56
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited Partnership) 155692673.16 155691200.00
Shenzhen Kanghuijia Technology Co. Ltd. 7684.53 7684.53
Subtotal of equity investments 1440296328.44 1467397360.73
Ningbo Yuanqing No. 9 Investment Partnership 148855198.11 148855198.11
151Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Shenzhen Beihu Technology Partnership (Limited Partnership) 59735232.88 59735232.88
Shanxi Kangmengrong Enterprise Management Consulting Partnership (Limited Partnership) 8520728.55 9163411.30
Nanjing Kangfeng Dejia Asset Management Partnership (Limited Partnership) 100000000.00 100000000.00
Shenzhen Gaohong Enterprise Consulting Management Partnership (Limited Partnership) 114815791.63 109739999.99
Shenzhen Zitang No.1 Enterprise Consulting Management Partnership (Limited Partnership) 99000000.00 99000000.00
Xi'an Bihuijia Enterprise Management Consulting Partnership (Limited Partnership) 14685194.12 15785194.99
Subtotal of debt investments 545612145.29 542279037.27
Total 1985908473.73 2009676398.00
14. Investment property
（1） Investment properties measured at cost
Item Land use right Properties and buildings Total
I. Original carrying value
1. Opening balance 91837689.30 1558110727.67 1649948416.97
2. Increase in the current period 10542998.55 62056444.27 72599442.82
(1) External purchase
(2) Fixed assets\construction in progress\transfer of
intangible assets 10542998.55 62056444.27 72599442.82
152Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Land use right Properties and buildings Total
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Closing balance 102380687.85 1620167171.94 1722547859.79
II. The accumulative depreciation and accumulative
amortisation
1. Opening balance 21541632.80 158180060.30 179721693.10
2. Increase in the current period 1366075.68 24522087.58 25888163.26
(1) Provision or amortisation 1366075.68 24522087.58 25888163.26
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Closing balance 22907708.48 182702147.88 205609856.36
III. Provision for impairment
1. Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
153Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Land use right Properties and buildings Total
(1) Disposal
(2) Other transfer out
4. Closing balance
IV. Carrying value
1. Closing carrying value 79472979.37 1437465024.06 1516938003.43
2. Opening carrying value 70296056.50 1399930667.37 1470226723.87
（2） Impairment test of investment properties measured at cost
No provision for impairment of investment properties was made during the Reporting Period.
（3） Investment properties measured at fair value
There were no investment properties measured at fair value of the Group.
（4） Investment properties in the process of title certificate handling
Item Carrying value Reason that the certificate of title was not completed
Konka Standard Electronic Product Plants Project in Suining 375714645.70 In the process of project closure project closure will notbe processed until the project is completed.Total 375714645.70
（5） Investment properties with restricted ownership or use rights
Item Closing carrying value Reasons for the restriction
154Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing carrying value Reasons for the restriction
Konka Guangming Technology Centre 572516043.72 Mortgage loan
Houses and buildings of Shaanxi Konka 70800534.86 Mortgage loan
Total 643316578.58
15. Fixed assets
Item Closing carrying value Opening carrying value
Fixed assets 5017976577.28 5218297745.16
Liquidation of fixed assets 32448750.14
Total 5050425327.42 5218297745.16
15.1 Fixed Assets
（1） Fixed assets
Item Properties and Machinery andbuildings equipment Electronic equipment
Transport
equipment Other equipment Total
I. Original carrying value
1. Opening balance 4064218816.99 3320880784.80 302188512.88 55935781.31 189243639.88 7932467535.86
2. Increased amount of the
period 3197639.47 92432260.80 2212968.25 385233.45 1303855.17 99531957.14
(1) Purchase 3197639.47 14508655.11 2114251.41 385233.45 1303855.17 21509634.61
155Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Properties and Machinery and Electronic equipment Transportbuildings equipment equipment Other equipment Total
(2) Transfer-in of
construction in progress 77710101.27 17787.61 77727888.88
(3) Increase through
consolidation
(4) Other transfer-in 213504.42 80929.23 294433.65
3. Decreased amount of the
period 112806344.20 12878085.53 5765117.33 1359998.05 886178.86 133695723.97
(1) Disposal or write-off 51084326.98 11934642.83 5250024.44 1359998.05 819642.86 70448635.16
(2) Decrease for loss of
controlling right 302363.06 515092.89 2876.10 820332.05
(3) Other decreases 61722017.22 641079.64 63659.90 62426756.76
4. Ending balance 3954610112.26 3400434960.07 298636363.80 54961016.71 189661316.19 7898303769.03
II. Accumulated depreciation
1. Opening balance 740844429.80 1465754243.66 200150283.49 42094186.82 125133960.40 2573977104.17
2. Increased amount of the
period 57920184.65 124779559.01 14586543.16 2151073.91 7201870.28 206639231.01
(1) Provision 57101166.26 124779559.01 12656846.89 2151073.91 7201870.28 203890516.35
(2) Increase through
consolidation
156Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Properties and Machinery and Electronic equipment Transportbuildings equipment equipment Other equipment Total
(3) Other increase 819018.39 1929696.27 2748714.66
3. Decreased amount of the
period 31229339.51 10409963.77 3415649.87 1032253.06 2758219.45 48845425.66
(1) Disposal or write-off 60727.49 9543422.23 2954073.36 1032253.06 705912.00 14296388.14
(2) Decrease for loss of
controlling right 167718.41 461576.51 2588.49 631883.41
(3) Other decreases 31168612.02 698823.13 2049718.96 33917154.11
4. Ending balance 767535274.94 1580123838.90 211321176.78 43213007.67 129577611.23 2731770909.52
III. Provision for impairment
1. Opening balance 23987527.51 107259898.81 2789800.42 841445.29 5314014.50 140192686.53
2. Increased amount of the
period 10646284.08 10646284.08
(1) Provision 10646284.08 10646284.08
3. Decreased amount of the
period 357047.03 1919104.94 6536.41 2282688.38
(1) Disposal or write-off 222402.39 1898966.13 6536.41 2127904.93
(2) Other decrease 134644.64 20138.81 154783.45
4. Ending balance 23987527.51 117549135.86 870695.48 841445.29 5307478.09 148556282.23
157Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Properties and Machinery andbuildings equipment Electronic equipment
Transport
equipment Other equipment Total
IV. Carrying value
1. Ending carrying value 3163087309.81 1702761985.31 86444491.54 10906563.75 54776226.87 5017976577.28
2. Opening carrying value 3299386859.68 1747866642.33 99248428.97 13000149.20 58795664.98 5218297745.16
158Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（2） List of temporarily idle fixed assets
Item Original carrying Accumulated Provision forvalue depreciation impairment Carrying value
Machinery and
equipment 814906750.09 434472592.81 87220284.81 293213872.47
Electronic
equipment 10569556.50 9252851.88 111084.51 1205620.11
Transport
equipment 3887229.49 3639105.62 20675.15 227448.72
Properties and
buildings 264495526.66 146277917.11 7899900.07 110317709.48
Other equipment 1313806.25 741647.49 259629.18 312529.58
Total 1095172868.99 594384114.91 95511573.72 405277180.36
（3） Fixed assets leased out through operating leases
Item Closing carrying value
Electronic equipment 250227.89
Machinery and equipment 15146352.83
Other equipment 264878.88
Transport equipment 13555.68
Total 15675015.28
（4） Details of fixed assets failed to accomplish certification of property
Reason
that the
Item Original carrying Accumulated
Provision
value depreciation for Net book value
certificate
impairment of title wasnot
completed
Ankang's plants 603628412.83 39879186.98 563749225.85 Beinghandled
Housing and buildings
of Chongqing Konka 453857134.27 14198661.09 439658473.18
Being
handled
Fenggang Konka
Smart Colour TV
Project (Section I) 425011644.82 8765865.17 416245779.65
Being
handled
Property
Frestec Smart Home
properties and 406680006.86 6075992.68 400604014.18 Being
buildings handled
159Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Reason
that the
Item Original carrying Accumulated
Provision
for Net book value certificatevalue depreciation impairment of title wasnot
completed
Yikang Building
property 76610752.33 42937872.94 33672879.39
Being
handled
Boluo Printing Plate
Phase III Plant 52579211.93 1670318.30 50908893.63
Being
handled
Jingyuan Building
property 7700000.00 4331237.47 3368762.53
Being
handled
Standard electronic
product plants in 1544085.19 87005.85 1457079.34 Being
Suining handled
Total 2027611248.23 117946140.48 1909665107.75
160Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（5） Impairment test of fixed assets
During the Reporting Period the Company conducted impairment tests on the fixed assets of Henan Frestec Refrigeration Appliance Co. Ltd. determined their
recoverable amounts based on the net fair value less disposal costs and recognised an impairment loss on assets of RMB10646284.08.Item Carrying value Recoverable Impairment Determination of fair value Keyamount amount and disposal costs parameters Basis for determining key parameters
1. The scope of asset group: abandoned
1. The fair value is determined and idle equipment such as baler
Machinery equipment of on the quotation of second-hand 1. Scope of foaming machine multi-station vacuum
Frestec Refrigeration 13043951.93 2397667.85 10646284.08 equipment suppliers; 2. The asset group; 2. forming machine of container anddisposal costs are included in the Fair value; gallbladder; 2. The fair value is
quotation and are not considered. determined on the quotation of second-
hand equipment suppliers.Total 13043951.93 2397667.85 10646284.08 — — —
161Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（6） Fixed Assets with Restricted Ownership or Use Right
Item Closing carrying value Reasons for the restriction
Anhui Konka's buildings 594158945.16 Mortgage loan
Housing and buildings of Chongqing
Konka 333838258.53 Mortgage loan
Properties and buildings of Shanxi
Konka Intelligent 257597123.66 Mortgage loan
Housing and buildings of Anhui
Tongchuang 137747881.71 Mortgage loan
Housing and buildings of Frestec
Refrigeration 79482863.26 As collateral for finance lease
Machinery equipment of XingDa
HongYe 62102622.44 As collateral for finance lease
Buildings of Konka Group 61612474.97 Mortgage loan
Housing and buildings of Jiangsu
Konka Intelligent 34142638.01 Mortgage loan
Housing and buildings of XingDa
HongYe 29164839.65 Mortgage loan
Machinery equipment of Xinfeng
Microcrystalline 7677954.68 As collateral for finance lease
Housing and buildings of Jiangxi
Konka 2279341.79
Original shareholder guarantee
mortgage
Total 1599804943.86
（7） Disposal of Fixed Assets
Item Closing carrying value Opening carrying value
Frestec Refrigeration Project 32448750.14
Total 32448750.14
162Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
16. Construction in progress
（1） Construction in progress
Closing balance Opening balance
Item
Book balance Provision for Carrying value Book balance Provision forimpairment impairment Carrying value
Jiangxi High-permeability Crystalisation
Kiln 246576748.57 46755148.57 199821600.00 246576748.57 46755148.57 199821600.00
Dongguan Konka New Industrial Park 12820621.35 12820621.35
Construction of Suining Electronic
Industrial Park Workshops 177627683.33 177627683.33 177516258.23 177516258.23
Suining Konka Hongye Plant Decoration
Project 84574481.80 84574481.80 76141438.86 76141438.86
Dishwasher Project of Jiangxi Konka 55685802.09 55685802.09
Production Line Renovation Project of
Jiangxi Konka 85354578.78 12415331.15 72939247.63 85861185.36 12518073.84 73343111.52
Other projects 330003779.69 32822800.38 297180979.31 321142187.11 42750899.13 278391287.98
Total 936957893.52 91993280.10 844964613.42 962923620.22 102024121.54 860899498.68
（2） Changes in major projects under construction in the current period
Name of item Opening balance Increase in the current Decrease in the current period Closing balance
period
163Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Transferred to long-term
assets Other decreases
Jiangxi High-permeability Crystalisation
Kiln 246576748.57 246576748.57
Construction of Suining Electronic Industrial
Park Workshops 177516258.23 111425.10 177627683.33
Dishwasher Project of Shaanxi Konka 55685802.09 55685802.09
Total 479778808.89 111425.10 55685802.09 424204431.90
(Continued)
Estimated Proportion Of which: the Capitalisation
number estimated of
Engineering Accumulated amount amount of the rate of the
Name of item (RMB100 the project Schedule of interest capitalised interests in the Source of fund
million) accumulative (%) capitalisation interests in the current periodinput (%) current period (%)
Jiangxi High-permeability Crystalisation
Kiln 3.40 72.52 72.52 32249994.16 Bank loans
Construction of Suining Electronic Industrial
Park Workshops 7.34 95.00 95.00 Self-owned fund
Dishwasher Project of Shaanxi Konka 0.56 98.86 98.86 Self-owned fund
Total 11.30 32249994.16
（3） Provision set aside for impairment of construction in progress in the current period
Category Opening balance Increase in the current period Decrease in the currentperiod Closing balance Reason for withdrawal
Jiangxi High-permeability
Crystalisation Kiln 46755148.57 46755148.57
164Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Category Opening balance Increase in the current period Decrease in the currentperiod Closing balance Reason for withdrawal
Jiangxi High Transparent
Nano Line 1 Project 36181822.63 6224551.33 29957271.30
Failure to achieve
serviceable conditions
Henan Civil Construction 3703547.42 3703547.42 Decrease for losingProject control power
Other projects 15383602.92 102742.69 15280860.23 Failure to achieveserviceable conditions
Total 102024121.54 10030841.44 91993280.10 —
（4） Impairment test of construction in progress
There was no provision for impairment of construction in progress during the Reporting Period.
165Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
17. Right-of-use assets
（1） List of right-of-use assets
Item Properties and buildings Electronic Transportequipment equipment Total
I. Original carrying
value
1. Opening balance 278099315.84 279350.52 278378666.36
2. Increase in the
current period 33384402.11 33384402.11
(1) Rent 33384402.11 33384402.11
(2) Others
3. Decrease in the
current period 32622122.73 32622122.73
(1) Decrease for
loss of controlling
right
(2) Others 32622122.73 32622122.73
4. Closing balance 278861595.22 279350.52 279140945.74
II. Accumulated
depreciation
1. Opening balance 81209388.74 114854.45 81324243.19
2. Increase in the
current period 27978636.37 31804.75 28010441.12
(1) Provision 27978636.37 31804.75 28010441.12
(2) Others
3. Decrease in the
current period 29940601.10 29940601.10
(1) Decrease for
loss of controlling
right
(2) Others 29940601.10 29940601.10
4. Closing balance 79247424.01 146659.20 79394083.21
III. Provision for
impairment
1. Opening balance
2. Increase in the
current period
166Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Properties and buildings Electronic Transportequipment equipment Total
(1) Provision
3. Decrease in the
current period
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying
value 199614171.21 132691.32 199746862.53
2. Opening
carrying value 196889927.10 164496.07 197054423.17
Note: Other decreases in original value and accumulated depreciation are mainly due to lease
expiration.
167Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
18. Intangible assets
（1） List of intangible assets
Intellectual property
Item Land use right Total
Trademark right Patent and know-
Right to use
how Franchise rights software and Subtotalothers
I. Original carrying
value
1. Opening balance 886356061.91 72197456.33 116697625.44 187333182.47 177648647.63 553876911.87 1440232973.78
2. Increased amount of
the period 927169.67 3620554.10 4547723.77 4547723.77
(1) Purchase 2404874.68 2404874.68 2404874.68
(2) Transfer-in of
construction in progress 927169.67 1215679.42 2142849.09 2142849.09
(3) Other reasons
3. Decreased amount of
the period 24316563.55 21116714.34 21116714.34 45433277.89
(1) Disposal 13773565.00 21116714.34 21116714.34 34890279.34
(2) Decrease for loss of
controlling right
(3) Decrease for other 10542998.55 10542998.55
168Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
reasons
4. Ending balance 862039498.36 72197456.33 116697625.44 188260352.14 160152487.39 537307921.30 1399347419.66
II. Accumulated
amortisation
1. Opening balance 96724173.74 23415626.44 71699652.31 11721315.62 103542668.71 210379263.08 307103436.82
2. Increased amount of
the period 9722325.73 2081757.98 54451.51 5224211.87 8802235.81 16162657.17 25884982.90
(1) Provision 9722325.73 2081757.98 54451.51 5224211.87 8802235.81 16162657.17 25884982.90
(2) Other increases
3. Decreased amount of
the period 2746215.07 21116714.33 21116714.33 23862929.40
(1) Disposal 2610583.98 21116714.33 21116714.33 23727298.31
(2) Decrease for loss of
controlling right
(3) Decrease for other
reasons 135631.09 135631.09
4. Ending balance 103700284.40 25497384.42 71754103.82 16945527.49 91228190.19 205425205.92 309125490.32
III. Provision for
impairment
1. Opening balance 564705.88 44943521.62 235294.12 45743521.62 45743521.62
2. Increased amount of
the period
169Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
(1) Provision
(2) Increase in business
combinations
3. Decreased amount of
the period
(1) Disposal
(2) Decrease for loss of
controlling right
4. Ending balance 564705.88 44943521.62 235294.12 45743521.62 45743521.62
IV. Carrying value
1. Ending carrying
value 758339213.96 46135366.03 171314824.65 68689003.08 286139193.76 1044478407.72
2. Opening carrying
value 789631888.17 48217124.01 54451.51 175611866.85 73870684.80 297754127.17 1087386015.34
Note: There was no impairment of the Group's intangible assets during the Reporting Period.
170Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（2） Land use right with certificate of title uncompleted
The Group did not have land use rights for which no title deeds had been issued.
（3） Significant intangible assets
Item Closing carrying value Remaining amortisation period(year)
Land use right of Dongguan Konka 183797800.67 45.17
Concessions of Yibin Konka 171314824.65 16.33
Land use right of Frestec Smart Home
Technology 89302521.51 46.25
Land usage right of Frestec Refrigeration 62865741.86 32.25
Total 507280888.69
（4） Intangible assets with restricted ownership or using right
Item Closing carrying value Reasons for the restriction
Land use right of Dongguan Konka 183797800.67 Mortgage loan
Land use right of Shanxi Konka Intelligent 109812076.81 Mortgage loan
Land use right of Frestec Smart Home
Technology 89302521.51 Mortgage loan
Land usage right of Frestec Refrigeration 62865741.86 As collateral for finance lease
Land use right of Anhui Konka 53273636.00 Mortgage loan
Land use right of Chongqing Konka 44097359.88 Mortgage loan
Land use right of Anhui Tongchuang 17210885.31 Mortgage loan
Land use right of Jiangsu Konka 13511463.83 Mortgage loan
Land use right of XingDa HongYe 12878528.02 Mortgage loan
Land use right of Jiangxi Konka 11936997.05 Original shareholder guaranteemortgage
Land use right of Konka Guangming 4224230.38 Mortgage loan
Total 602911241.32
19. Goodwill
（1） Original carrying value of goodwill
171Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Increase in the current Decrease in the
period current period
Investee Opening balance Closing balance
Formed 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
Increase in the current Decrease in the
period current period
Investee Opening balance Closing balance
Provision Others Disposal
Othe
rs
Jiangxi Konka 340111933.01 340111933.01
XingDa
HongYe 21959947.14 21959947.14
Total 362071880.15 362071880.15
20. Long-term deferred expenses
Amortisation in Other
Item Opening balance Increase in thecurrent period the current
decreases in
the current Closing balanceperiod period
Decoration
expenses 370388936.88 8587369.87 35331884.42 10930839.71 332713582.62
Shoppe
expense 24974475.38 16321473.67 11660670.44 1664114.98 27971163.63
Others 123555811.45 35612984.68 21836551.80 7880195.32 129452049.01
Total 518919223.71 60521828.22 68829106.66 20475150.01 490136795.26
21. Deferred Income Tax Assets/Deferred Income Tax Liabilities
（1） Deferred tax assets that have not been offset
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Deductible
losses 3833414709.20 811599214.91 3747584829.70 794363411.92
172Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Item Deductible Deferred tax Deductible Deferred tax
temporary temporary
differences Assets differences Assets
Provision for
asset 1829025527.80 401304876.17 1879389407.11 407751765.55
impairment
Deferred
revenue 167074039.39 36955793.78 167691056.33 36766230.50
Accrued
expenses 313175362.02 66365728.23 262522401.07 58732850.29
Unrealised
internal sales 55997896.96 11745908.12 55653196.64 13913299.16
profits
Lease liabilities 201197429.82 50004006.85 207847769.62 50208319.90
Others 260960747.01 61612266.63 279982155.72 64838104.84
Total 6660845712.20 1439587794.69 6600670816.19 1426573982.16
（2） Deferred tax liabilities that have not been offset
Closing balance Opening balance
Item
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Estimated
added value of
assets not under 167391570.39 35716343.31 154693540.82 37285533.12
the same control
Prepaid interest 37541390.08 9385347.52 37541390.08 9385347.52
Accelerated
depreciation of 44154571.98 6785641.35 3005493.04 608518.82
fixed assets
Financial assets
at fair value
through profit 148002025.36 37000506.34 327802549.12 81950637.29
or loss
Right-of-use
assets 192106186.72 48026546.70 195220008.99 48074535.52
Others 9249308.72 2312327.18 47153970.40 7721593.00
Total 598445053.25 139226712.40 765416952.45 185026165.27
（3） Breakdown of unrecognised deferred tax assets
Item Closing balance Opening balance
173Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Deductible losses 4607675003.87 3693212186.74
Deductible temporary differences 3928816549.12 4173904666.60
Total 8536491552.99 7867116853.34
（4） Deductible losses of unrecognised deferred tax assets matured/will mature in the
following year
Year Closing balance Opening balance Notes
2024121029752.50175414641.28
2025435923297.45464500932.68
2026209031391.65224104387.87
202794666236.63110289035.04
2028740529446.352718903189.87
2029 and following years 3006494879.29
Total 4607675003.87 3693212186.74 —
22. Other non-current assets
Closing balance
Item
Book balance Provision forimpairment Carrying value
Prepayment for land-purchase 1029457502.92 1029457502.92
Prepayment for construction equipment
and other long-term assets 266687168.69 266687168.69
Total 1296144671.61 1296144671.61
(Continued)
Opening balance
Item
Book balance Provision forimpairment Carrying value
Prepayment for land-purchase 1029317896.04 1029317896.04
Prepayment for construction equipment
and other long-term assets 219010910.12 219010910.12
Total 1248328806.16 1248328806.16
23. Assets with restricted ownership or use rights
Item End of the period
174Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Book balance Carrying value Type ofrestriction Restriction details
Among them
RMB439611924.45 is margin
deposit pledged for
borrowings or issuing bank
Monetary Margins acceptance; RMB664.24 is
assets 1135996069.35 1135996069.35 pledges time financial supervisory accountdeposits funds; RMB469680000.00 is
time deposit that cannot be
withdrawn in advance;
RMB226703480.66 is
restricted due to other reasons.Accounts
receivable 1082099.02 1059896.50 Pledge Pledge loan
Notes
receivable 135131288.11 135131288.11 Pledge Pledged to issue bills
Inventory 477577793.08 477577793.08 Mortgage Mortgage loan
Investment
property 706736950.42 643316578.58 Mortgage Mortgage loan
Mortgage for finance lease
Fixed assets 1937212292.51 1599804943.86 Mortgage mortgage loan mortgageguaranteed by the original
shareholder
Mortgage for finance lease
Intangible
assets 627235336.77 602911241.32 Mortgage
mortgage loan mortgage
guaranteed by the original
shareholder
Construction
in progress 46810437.16 46810437.16 Mortgage Mortgage loan
Total 5067782266.42 4642608247.96 — —
(Continued)
Beginning of the period
Item
Book balance Carrying value Type ofrestriction Restriction details
Among them
RMB384011696.60 is margin
deposit pledged for borrowings
Monetary Margins or issuing bank acceptance
assets 831575227.47 831575227.47 pledges time RMB226611500.00 is timedeposits deposit that cannot be
withdrawn in advance;
RMB220952030.87 is
restricted due to other reasons.Accounts
receivable 2527314.22 2474071.67 Pledge Pledge loan
Notes 209288446.67 209288446.67 Pledge They are pledged for the
175Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Beginning of the period
Item
Book balance Carrying value Type ofrestriction Restriction details
receivable issuance of bank acceptance
Carrying value of inventories
seized as a result of the
minority shareholder case of a
subsidiary was
Inventory 601395411.05 599475045.44 Seizuremortgage RMB49679547.48 and theCompany did not waive claims;
year-end book value of
inventory used for mortgage
loans was RMB549795497.96.Investment
property 634578011.63 585984804.04 Mortgage Mortgage loan
Mortgage for finance lease
Fixed assets 2003558346.93 1689602310.18 Mortgage mortgage loan mortgageguaranteed by the original
shareholder
Mortgage for finance lease
Intangible
assets 687667571.97 620594057.60 Mortgage
mortgage loan mortgage
guaranteed by the original
shareholder
Construction
in progress 40629663.23 40629663.23 Mortgage Mortgage loan
Total 5011219993.17 4579623626.30 — —
24. Short-term loans
（1） Classification of short-term loans
Type of borrowings Closing balance Opening balance Notes
Unsecured loan 5487754338.21 4741431032.21
Guaranteed loan 660533547.75 1374378896.71 * * *
Mortgage loan 361799744.99 274782127.35 * * * * *
Total 6510087630.95 6390592056.27
* The Company has provided a joint and several guarantee for the short-term borrowings totaling
RMB199942853.31 taken out by its subsidiaries Anhui Konka Yibin Smart Boluo Precision
Jiangxi Konka Jiangxi Konka and Konka Xinyun Semiconductor.* The Company has obtained short-term borrowings amounting to RMB410418472.21 from
Shenzhen Chegongmiao Sub-branch of China Everbright Bank Co. Ltd. and the Company's
subsidiaries Suining Konka Industrial Park and Konka Circuit have each provided a joint and
several guarantee for debts continuously incurred in a specific period and capped at a specific
176Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
amount being liable for 80% and 20% of such debts respectively.* The Company's subsidiary Ningbo Khr Electric Appliance has obtained short-term borrowings
amounting to RMB50172222.23 from Cixi Guancheng Sub-branch of Bank of China Limited
for which the Company and KEG Group Co. Ltd. have each provided a joint and several
guarantee at the ratio of 3:2.* By mortgaging properties and buildings with a carrying value of RMB409974007.80 and land
use rights with a carrying value of RMB35467241.33 the Company's subsidiary Anhui Konka
has obtained short-term borrowings amounting to RMB141791828.32 from Chuzhou Branch of
Bank of China Limited.* By mortgaging land use rights with a carrying value of RMB89302521.51 the Company's
subsidiary Frestec Smart Home has obtained short-term borrowings amounting to
RMB52056333.33 from Xinxiang Branch of Industrial Bank Co. Ltd. and the Company and
Meng Honggang the legal representative of Chuzhou Hanshang Electrical Appliances Co. Ltd.have each provided a joint and several guarantee for debts continuously incurred in a specific
period and capped at a specific amount being liable for 51% and 49% of such debts respectively.* By mortgaging properties and buildings with a carrying value of RMB29164839.65 and land
use rights with a carrying value of RMB12878528.02 and pledging a certificate of deposit in the
amount of RMB19800000.00 with a joint and several guarantee provided by Hu Zehong the
Company's subsidiary XingDa HongYe has obtained short-term borrowings amounting to
RMB94090083.34 from Fusha Sub-branch of Zhongshan Rural Commercial Bank Co. Ltd.* By mortgaging properties and buildings with a carrying value of RMB34142638.01 and land
use rights with a carrying value of RMB13511463.83 the Company's subsidiary Jiangsu Konka
Smart has obtained short-term borrowings amounting to RMB30033750.00 from Changzhou
Branch of China Zheshang Bank Co. Ltd.* By mortgaging properties and buildings with a carrying value of RMB137747881.71 and land
use rights with a carrying value of RMB17210885.31 the Company's subsidiary Anhui
Tongchuang has obtained short-term borrowings amounting to RMB43827750.00 from Hefei
Branch of China Zheshang Bank Co. Ltd.
（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 Closing balance Opening balance
Banker's acceptance 775950422.77 786833882.36
Commercial acceptance draft 205977959.18 203649044.84
177Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Type of note Closing balance Opening balance
Total 981928381.95 990482927.20
26. Accounts payable
Item Closing balance Opening balance
Within one year 2320012296.29 2002263324.19
One to two years 390501476.73 448060250.16
Two to three years 75821318.63 107371417.74
Over three years 154216669.07 169136683.88
Total 2940551760.72 2726831675.97
27. Accounts received in advance
Type of note Closing balance Opening balance
Rents 311664.91
Total 311664.91
28. Contract liabilities
（1） Contract liabilities
Item Closing balance Opening balance
Sales advances received 326016727.91 527975160.12
Total 326016727.91 527975160.12
Note: Contractual liabilities over one year are detailed in "VI.41. Other non-current
liabilities" in this note.
（2） Significant contract liabilities with an age of more than one year
There were no significant contract liabilities with an age of more than one year in the
Reporting Period.
（3） Significant changes in carrying value in the current period
There were no significant changes in carrying value in the current period.
29. Payroll payable
（1） List of payrolls payable
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
178Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
Short-term
remuneration 302906283.43 663359406.44 770236182.60 196029507.27
Post-employment
benefits-defined 984500.20 51532957.08 51538306.83 979150.45
contribution plans
Dismissal benefits 842320.00 8099251.50 7462264.74 1479306.76
Other benefits due
within one year
Total 304733103.63 722991615.02 829236754.17 198487964.48
（2） Short-term remuneration
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
Salaries bonuses
allowances and 292819254.32 584485214.41 693448301.36 183856167.37
subsidies
Employee benefits 5354332.27 31342888.00 29128609.38 7568610.89
Social insurance
premiums 564961.75 22518004.27 22491339.94 591626.08
Including: Medical
insurance premiums 396722.21 20007041.07 19958059.73 445703.55
Work injury
insurance premiums 77112.94 1644853.26 1605135.75 116830.45
Maternity
insurance premiums 91126.60 866109.94 928144.46 29092.08
Housing fund 486011.97 19532752.22 19688006.12 330758.07
Labour union funds
and education funds 3681723.12 5480547.54 5479925.80 3682344.86
Short-term absence
with payment
Short-term profit
sharing plan
Others
Total 302906283.43 663359406.44 770236182.60 196029507.27
（3） Defined contribution plans
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
179Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
Basic endowment
management 835465.17 49330295.67 49333661.41 832099.43
insurance
Unemployment
insurance premiums 149035.03 2202661.41 2204645.42 147051.02
Annuity contribution
Total 984500.20 51532957.08 51538306.83 979150.45
30. Taxes payable
Item Closing balance Opening balance
Value-added tax 15634896.66 66607505.30
Property tax 12276323.34 5219025.56
Stamp duty 7282071.55 6782263.86
Corporate income tax 6262028.72 91733192.66
Land use tax 3597483.22 11704493.10
Personal income tax 2197631.55 2285063.65
Tariff 1678500.01 1513377.11
City construction and maintenance tax 572922.63 3479642.26
Education fees and local education
Surcharge 434273.38 2525463.27
Fund for disposing abandoned appliances
and electronic products 21210465.50
Others 1629201.77 1356643.60
Total 51565332.83 214417135.87
31. Other payables
Item Closing balance Opening balance
Interest payable
Other payables 1762366179.22 1922791905.14
Total 1762366179.22 1922791905.14
31.1 Interests payable
Item Closing balance Opening balance
Interest on corporate bonds
Interest on long-term borrowings with
interest paid by installment and principal
180Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
paid at maturity
Interest payable on short-term borrowings
Total
31.2 Other Payables
（1） Other accounts payable presented based on the fund nature
Nature of fund Closing balance Opening balance
Trading funds 666170006.98 798553216.65
Expenses payable 463347998.31 521810773.58
Related party borrowing 216849686.69 236064633.74
Cash deposit and front 291952029.84 282035338.52
Advance payment 6202442.99 5480880.33
Equity payable 24302796.96 24302796.96
Others 93541217.45 54544265.36
Total 1762366179.22 1922791905.14
（2） Significant other accounts payable with an age of more than one year or overdue
Unit Closing balance Reason for non-repayment orcarry-over
The Third Construction Engineering
Company Ltd. of China Construction 21535346.08 It was not yet due for payment as
Second Engineering Bureau per the contract
Total 21535346.08
32. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one
year 2718841649.66 2891407222.55
Long-term payables due within one year 140336.20 141650.44
Bonds payable due within one year 830985555.48 2370572421.45
Lease liabilities due within one year 50971866.23 52026101.92
Total 3600939407.57 5314147396.36
33. Other current liabilities
181Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Accounts payable paid by endorsement
of outstanding notes at the end of the 13712030.20 11524075.93
Reporting Period
Tax to be charged off 17159993.79 23890662.41
Refunds payable 15404439.30 18915977.41
Total 46276463.29 54330715.75
34. Long-term loans
Type of borrowings Closing balance Opening balance Notes
Guaranteed loan 3652266829.86 4047706381.39 * * * * * * * * *
Mortgage loan 1337302982.46 1207161686.81 * * * ?????
Entrusted borrowings 2089923918.27 2054850296.35 ?
Unsecured loan 2743058366.07 3276240462.52
Pledge loan 102077890.63 84598475.36 ??
Less: Portion due within one
year 2718841649.66 2891407222.55
Total 7205788337.63 7779150079.88
* The Company has obtained long-term borrowings amounting to RMB1478977500.00 from
Shenzhen Branch of China Guangfa Bank Co. Ltd. the term of which is from 23 August 2022 to
20 December 2026 and for which the Company's parent company OCT Group provides joint and
several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB1290971055.64 from
Shenzhen Branch of China Development Bank Co. Ltd. the term of which is from 22 December
2022 to 22 September 2026 and for which the Company's parent company OCT Group provides
joint and several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB600351666.66 from the
Shenzhen Branch of Export-Import Bank of China the term of which is from 25 June 2024 to 25
June 2026 and for which the Company's parent company OCT Group provides joint and several
liability guarantee at the maximum amount.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB80083333.33 from Chuzhou Plaza Sub-branch of China Construction Bank Co. Ltd. the
term of which is from 29 October 2021 to 26 October 2026 and for which the Company provides
joint and several liability guarantee.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB48486886.48 from Chuzhou Branch of Agricultural Bank of China Co. Ltd. the term of
which is from 29 June 2023 to 28 June 2028 and for which the Company provides joint and
several liability guarantee.* The Company's subsidiary Anhui Tongchuang has obtained long-term borrowings amounting
to RMB29029000.00 from Chuzhou Branch of China Everbright Bank Co. Ltd. the term of
which is from 26 December 2023 to 25 June 2025 and for which the Company provides joint and
182Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
several liability guarantee at the maximum amount.* The Company's subsidiary Konka Xinyun Semiconductor has obtained long-term borrowings
amounting to RMB42812500.00 from Yancheng Branch of Huaxia Bank Co. Ltd. the term of
which is from 15 September 2021 to 21 August 2026 and for which the Company provides joint
and several liability guarantee.* The Company's subsidiary Sichuan Konka has obtained long-term borrowings amounting to
RMB28053，833.34 from Yibin Rural Commercial Bank Co. Ltd. the term of which is from 23
May 2023 to 26 April 2026 and for which the Company provides joint and several liability
guarantee.* The Company's subsidiary GuangDong XingDa HongYe Electronic Co. Ltd. has obtained
long-term borrowings amounting to RMB53501054.41 from Chengdu Branch of Industrial Bank
Co. Ltd. the term of which is from 25 January 2024 to 7 November 2038 and for which the
Company and Guangdong Shudian Technology Development Enterprise (Limited partnership)
provide joint and several liability guarantee at the maximum amount.* The Company has obtained long-term borrowings amounting to RMB399892032.96 from
Guanlan Sub-branch of Shenzhen Rural Commercial Bank Co. Ltd. the term of which is from 21
January 2021 to 17 January 2027 and for which it provides land use rights of a carrying value of
RMB4224230.38 and investment properties of a carrying value of RMB572516043.72 and
properties and buildings of a carrying value of RMB61612474.97 as mortgage.* The Company's subsidiary Anhui Konka has obtained long-term borrowings amounting to
RMB80309336.72 from Chuzhou Branch of Industrial Bank Co. Ltd. the term of which is from
16 July 2021 to 15 July 2031 and for which it provides fixed assets of a carrying value of
RMB184184937.36 and land use rights of a carrying value of RMB17806394.67 as mortgage
and for which the Company provides joint and several liability guarantee.* The Company's subsidiary Dongguan Konka has obtained long-term borrowings amounting to
RMB331310338.95 from Dongguan Fenggang Sub-branch of Agricultural Bank of China Co.Ltd. the term of which is from 23 June 2021 to 21 October 2030 and for which it provides land
use rights as intangible assets of a carrying value of RMB183797800.67 as mortgage and the
Company provides joint and several liability guarantee.?The Company's subsidiary Nantong Kanghai has obtained long-term borrowings amounting to
RMB47955164.36 from Haimen Sub-branch of Bank of Suzhou Co. Ltd. the term of which
from 24 April 2023 to 25 July 2025 and for which it provides land use rights and construction in
progress of a carrying value of RMB261709900.51 as mortgage.?The Company's subsidiary Shanxi Konka Intelligent has obtained long-term borrowings
amounting to RMB247747500.00 from Shanxi Free Trade Zone Xi'an International Port Area
Sub-branch of Industrial and Commercial Bank of China Co. Ltd. the term of which is from 28
September 2023 to 3 November 2033 and for which it provides investment properties of a
carrying value of RMB70800534.86 properties and buildings of a carrying value of
RMB257597123.66 and land use rights of a carrying value of RMB109812076.81 as mortgage.?The Company's subsidiary Xi'an Kanghong Technology Industry has obtained long-term
borrowings amounting to RMB81540943.64 from the Business Department of Shanxi Branch of
Bank of Communications Co. Ltd. the term of which is from 15 June 2023 to 31 December 2032
and for which it provides properties and buildings and land use rights of a carrying value of
RMB215867892.57 as mortgage and the Company provides joint and several liability guarantee
at the maximum amount.?The Company's subsidiary Yantai Kangjin has obtained long-term borrowings amounting to
RMB11100000.00 from Yantai Rural Commercial Bank Co. Ltd. the term of which is from 16
January 2023 to 12 February 2026 and for which it provides construction in progress of a carrying
value of RMB46810437.16 as mortgage.? The Company's subsidiary Chongqing Konka has obtained long-term borrowings amounting to
183Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
RMB137447665.83 from Chongqing Liangjiang Branch of Industrial and Commercial Bank of
China Co. Ltd. the term of which is from 30 December 2022 to 29 December 2037 and for
which it provides properties and buildings of a carrying value of RMB333838258.53 and land
use rights of a carrying value of RMB44097359.88 as mortgage and the Company provides joint
and several liability guarantee at the maximum amount.?The Company's parent company OCT Group has extended entrusted loans amounting to
RMB2089923918.27 to the Company through China Merchants Bank Co. Ltd. the term of
which is from 10 January 2022 to 25 May 2025.?The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB52311352.44 from Yibin Branch of Industrial and Commercial Bank of China
Co. Ltd. with the accounts receivable arising from the prospective earnings from a franchise
agreement with an appraisal value of RMB595900000.00 as pledge and the term thereof is from
30 June 2022 to 15 April 2040.
?The Company's subsidiary Yibin Kangrun Medical has obtained long-term borrowings
amounting to RMB49766538.19 from Yibin Branch of Postal Savings Bank of China Co. Ltd.with the accounts receivable arising from the prospective earnings from a franchise agreement
with an appraisal value of RMB595900000.00 as pledge and the term thereof is from 30 June
2022 to 15 April 2040.
35. Bonds payable
（1） List of Bonds Payable
Item Closing balance Opening balance
Corporate bonds 5627894268.31 4797565000.12
Less: Bonds payable due within one year 830985555.48 2370572421.45
Total 4796908712.83 2426992578.67
（2） Changes in bonds payable
Bond name Total par value Issue date Bondmaturity Issue amount Opening balance
21Konka01
(note a) 1000000000.00 2021/1/8
Three
years 996500000.00 1043732777.88
21Konka02
(note b) 500000000.00 2021/5/21
Three
years 498250000.00 512094339.67
21Konka03 Three
(note c) 800000000.00 2021/7/9 years 797200000.00 814745303.93
22Konka01 1200000000.00 2022/7/14 Three(note d) years 1195800000.00 1217398867.91
22Konka03
(note e) 600000000.00 2022/9/8
Three
years 597900000.00 605499371.09
22Konka05
(note f) 600000000.00 2022/10/18
Three
years 597900000.00 604094339.64
24Konka01 Three
(note g) 1500000000.00 2024/1/29 years 1495200000.00
24Konka02
(note h) 400000000.00 2024/3/18 Three 398720000.00
184Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Bond name Total par value Issue date Bondmaturity Issue amount Opening balance
years
24Konka03
(note i) 400000000.00 2024/3/18
Three
years 398720000.00
Total 7000000000.00 6976190000.00 4797565000.12
(Continued)
Bond name Issuance in the current Accrue interest by Amortisation ofperiod par value premium/discount
21Konka01 (note a) 867222.12
21Konka02 (note b) 7722222.21 183438.12
21Konka03 (note c) 15800000.00 440251.55
22Konka01 (note d) 19380000.00 660377.29
22Konka03 (note e) 9900000.00 330188.74
22Konka05 (note f) 10500000.00 330188.74
24Konka01 (note g) 1495200000.00 25500000.00 998113.18
24Konka02 (note h) 398720000.00 4622222.21 199077.58
24Konka03 (note i) 398720000.00 4656888.88 199077.57
Total 2292640000.00 98948555.42 3340712.77
(Continued)
Bond name Prepayment in the currentperiod Closing balance
21Konka01 (note a) 1044600000.00
21Konka02 (note b) 520000000.00
21Konka03 (note c) 830985555.48
22Konka01 (note d) 1237439245.20
22Konka03 (note e) 615729559.83
22Konka05 (note f) 614924528.38
24Konka01 (note g) 1521698113.18
24Konka02 (note h) 403541299.79
24Konka03 (note i) 403575966.45
Total 1564600000.00 5627894268.31
Note 1:
a: On 8 January 2021 the Company issued RMB1 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.46% and the due date of 8 January
185Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2024. "21 Konka 01" was fully redeemed and delisted from the exchange on 8 January 2024.
b: On 21 May 2021 the Company issued RMB500 million of private placement corporate bonds
with the duration of three years the annual interest rate of 4.00% and the due date of 21 May 2024."21 Konka 02" was fully redeemed and delisted from the exchange on 21 May 2024.c: On 9 July 2021 the Company issued RMB800 million of private placement corporate bonds
with the duration of three years the annual interest rate of 3.95% and the due date of 9 July 2024."21 Konka 03" was fully redeemed and delisted from the exchange on 9 July 2024.d: On 14 July 2022 the Company issued RMB1.2 billion of public placement corporate bonds
with the duration of three years the annual interest rate of 3.23% and the due date of 14 July 2025.e: On 8 September 2022 the Company issued RMB600 million of private placement corporate
bonds with the duration of three years the annual interest rate of 3.30% and the due date of 8
September 2025.f: On 18 October 2022 the Company issued RMB600 million of private placement corporate
bonds with the duration of three years the annual interest rate of 3.50% and the due date of 18
October 2025.g: On 29 January 2024 the Company issued RMB1.5 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.00% and the due date of 29 January
2027.
h: On 18 March 2024 the Company issued RMB0.4 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.00% and the due date of 18 March
2027.
i: On 18 March 2024 the Company issued RMB0.4 billion of private placement corporate bonds
with the duration of three years the annual interest rate of 4.03% and the due date of 18 March
2027.
Note 2: OCT Group provided full-amount unconditional and irrevocable joint and several
liabilities guarantee for the due payment of the public and private offering of corporate bonds.
36. Lease liabilities
Item Closing balance Opening balance
Lease liabilities 216913078.79 212244920.84
Less: Lease liabilities due within one year (see
Note VI-32) 50971866.23 52026101.92
Total 165941212.56 160218818.92
37. Long-term payables
Item Closing balance Opening balance
Payables for equipment 5488624.85 6823209.13
Less: Unrecognised financing expenses 390942.07 545824.62
186Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Less: Amount due within one year (see Note VI-
32)140336.20141650.44
Total 4957346.58 6135734.07
38. Long-term payroll payables
Item Closing balance Opening balance
Termination benefits-net liabilities of defined
contribution plans 4661069.67 4718466.37
Total 4661069.67 4718466.37
39. Estimated liabilities
Item Closing balance Opening balance Cause(s)
Pending litigation 206591.51 206591.51
Discard expenses 1684347.81 1644068.13
Product quality assurance 120667033.32 101726574.07 After-sales of householdappliances
Performance compensation 200942606.09 200942606.09
Total 323500578.73 304519839.80
187Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
40. Deferred revenue
（1） Category of deferred income
Item Opening balance Increase in the current Decrease in the currentperiod period Closing balance Cause(s)
Government grants 425135237.90 15638700.00 32082830.68 408691107.22 Related to assets/income
Total 425135237.90 15638700.00 32082830.68 408691107.22
（2） Government subsidy items
Amount Amount
Subsidies recognised as recognised as
Government subsidy items Opening balance increased in the non-operating other income in Other changes Closing balance Related to
current period income in the the current assets/income
current period period
Headquarters 8K device-side
R&D project of Konka Group 22424922.40 3000000.00 1064187.26 24360735.14 Related to assets
Plant construction subsidy for
Yibin Konka Industrial Park 103545436.45 1159766.16 102385670.29 Related to assets
Plant decoration subsidy for
Yibin Konka Industrial Park 10074508.36 719607.72 9354900.64 Related to assets
Equipment subsidy for Konka
Xinyun Semiconductor 9696681.53 449675.04 9247006.49 Related to
(Yancheng) income
Returned payments for land by
Chongqing Konka 17934545.55 196363.62 17738181.93 Related to assets
188Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount Amount
Subsidies recognised as recognised as
Government subsidy items Opening balance increased in the non-operating other income in Other changes Closing balance Related to
current period income in the the current assets/income
current period period
Medical waste centralised
treatment project in Gaoxian 29150950.10 865869.78 28285080.32 Related to assets
County Yibin City
Other government subsidies
related to assets/income 232308193.51 12638700.00 13627361.10 14000000.00 217319532.41
Related to
assets/income
Total 425135237.90 15638700.00 18082830.68 14000000.00 408691107.22
189Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
41. Other non-current liabilities
Item Closing balance Opening balance
Contract liabilities over one year 205172360.96 179996351.33
Total 205172360.96 179996351.33
42. Share capital
Increase/decrease (+/-) in the current period
Item Opening balance New Bonus Closing balance
shares Bonus issueissue from Others Subtotalissued profit
Total
shares 2407945408.00 2407945408.00
43. Capital reserves
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
Other capital
surplus 526499506.76 6498827.39 11288034.03 521710300.12
Total 526499506.76 6498827.39 11288034.03 521710300.12
Note: Capital surplus for the Reporting Period--other capital surplus increase and decrease due to
the main reasons:
* The associated enterprise Wuhan Tianyuan Environmental Protection Co. Ltd. issued
conversion of convertible bonds resulting in a decrease in other capital surplus of
RMB11288034.03.* The equity incentives of the associated enterprise Hefei KONSEMI Storage Technology Co.Ltd. resulted in an increase in other capital surplus of RMB6498827.39.
190Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
44. Other comprehensive income
Beginning of the
period Amount incurred in the current period End of the period
Less: Amount Less: Amount
recognised as recognised as
other other
Item comprehensive
Amount incurred comprehensive income in the Attributable to Attributable to
Balance before income tax in income in the previous period Less: Income the parent minority
the current period previous period and transferred tax expense company after shareholders after
Balance
and transferred to tax tax
profit or loss in to retained
the Reporting earnings in the
Period ReportingPeriod
I. Other comprehensive
income that cannot be
reclassified as profits or -6398878.20 -6398878.20
losses
Changes in the fair value of
other equity instrument -6398878.20 -6398878.20
investments
Others
II. Other comprehensive
income reclassified as -7044680.24 -2253474.92 -681509.64 -1571965.28 -7726189.88
profits and losses
Including: Other
comprehensive income that
can be transferred to profits -4115978.90 -83919.23 -83919.23 -4199898.13
or losses under the equity
method
Exchange difference on -2928701.34 -2169555.69 -597590.41 -1571965.28 -3526291.75
translating foreign
191Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Beginning of the
period Amount incurred in the current period End of the period
Less: Amount Less: Amount
recognised as recognised as
other other
Item
Amount incurred comprehensive
comprehensive
income in the Attributable to Attributable to
Balance before income tax in income in the previous period Less: Income the parent minority Balance
the current period previous period and transferred tax expense company after shareholders afterand transferred to tax tax
profit or loss in to retained
the Reporting earnings in the
Period ReportingPeriod
operations
Total of other
comprehensive income -13443558.44 -2253474.92 -681509.64 -1571965.28 -14125068.08
192Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
45. Special reserve
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
Safety production fund 4657488.24 2537402.71 579353.59 6615537.36
Total 4657488.24 2537402.71 579353.59 6615537.36
46. Surplus reserves
Item Opening balance Increase in the Decrease in thecurrent period current period Closing balance
Statutory surplus
reserves 1005961774.19 1005961774.19
Discretionary
surplus reserves 238218590.05 238218590.05
Total 1244180364.24 1244180364.24
47. Unappropriated profit
Item The current period Last period
Balance as at the end of last period 1474561975.85 3638352029.02
Add: Total beginning balance of retained earnings before
adjustments
Including: Changes in accounting policies
Opening balance of current period 1474561975.85 3638352029.02
Add: Net profit attributable to owners of the parent
company in the current period -1087581842.55 -2163790053.17
Less: Appropriation of statutory surplus reserves
Ordinary share dividends payable
Closing balance of the current period 386980133.30 1474561975.85
48. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current period Amount incurred last period
Item
Income Cost Income Cost
Principal 9989383650.13 9658914170.75
business 5085252685.02 4774748009.74
Other 482677521.81 420429613.36
business 327277687.45 235221605.28
193Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in the current period Amount incurred last period
Total 5412530372.47 5009969615.02 10472061171.94 10079343784.11
（2） Information on the breakdown of operating revenue and cost of sales
Category of contracts Operating income Operating expenses
Business type
Of which: Consumer appliances business 2247070655.48 2014585214.49
Colour TV business 2115790827.61 2069113672.93
PCB business 231558538.52 201913961.50
Semiconductor and memory
chip business 82962696.19 104195917.13
Other business 735147654.67 620160848.97
Total 5412530372.47 5009969615.02
Classified by operating region
Of which: Domestic 4046161239.69 3696751585.18
Overseas 1366369132.78 1313218029.84
Total 5412530372.47 5009969615.02
（3） Information in relation to the trade price apportioned to the residual contract
performance obligation
The amount of revenue corresponding to performance obligations that have been contracted but
have not yet been fulfilled or completed at the end of the period is RMB1061116290.83 of
which RMB885586483.67 is expected to be recognised as revenue in 2024 and the remaining
RMB175529807.16 is expected to be recognised as revenue in 2025 and following years.
49. Taxes and surcharges
Item Amount incurred in thecurrent period Amount incurred last period
Stamp duty 20423713.44 17006122.55
Land use tax 10267616.69 8628212.80
Property tax 22000493.47 9429982.31
City maintenance & construction tax 3736313.54 3916672.25
Educational surcharge 1783117.24 1795764.31
Local educational surcharge 1124579.62 1197136.14
194Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent period Amount incurred last period
Water resources fund 466801.02 474599.45
Others 4890300.09 270476.72
Total 64692935.11 42718966.53
50. Selling expenses
Item Amount incurred in thecurrent period Amount incurred last period
Employee benefits 179816426.03 171827349.50
Advertising expense 58845808.44 114639309.81
Warranty fee 97656311.72 80388332.75
Promotional activities 81436139.43 95664759.55
Logistic Fee 36650239.62 41136310.25
Travel expenses 10047637.20 9554537.27
Lease expense 4534869.11 5281279.82
Entertainment fees 5092642.27 6056077.13
Exhibition expenses 3678606.92 5525688.44
Taxes and fund 549965.00
Others 17617773.52 27913056.01
Total 495376454.26 558536665.53
51. Administration expenses
Item Amount incurred in thecurrent period Amount incurred last period
Employee benefits 154300923.47 201752601.81
Depreciation charges 112987437.91 103962882.38
Intermediary fees 10762242.10 20680100.93
Travel expenses 3069025.63 6391903.53
Water and electricity expenses 6470775.15 5169402.73
Loss on scraping of inventories 544223.62 580512.03
Others 27811392.14 51707164.36
Total 315946020.02 390244567.77
195Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
52. R&D expense
Item Amount incurred in thecurrent period Amount incurred last period
Salary 112601611.50 125331251.82
Depreciation and amortisation charge 55043697.25 52673986.51
New product trial production expense 13867547.29 12377094.01
Material expense 9254000.43 17796228.66
Commission service fee 222156.14 2048184.94
Testing expense 2797313.59 3249155.22
Information use fee 369876.67 360938.22
Others 20421823.94 23197053.73
Total 214578026.81 237033893.11
53. Finance costs
Item Amount incurred in thecurrent period Amount incurred last period
Interest expense 407018728.71 432772700.64
Less: Interest income 116244724.79 123908981.38
Add: Exchange loss -25405623.27 -133558528.06
Other expenses 15543995.01 23770433.30
Total 280912375.66 199075624.50
54. Other income
Resources Amount incurred in thecurrent period Amount incurred last period
Support funds 13782260.00 70000000.00
Rewards and subsidies 22036812.48 23457361.87
Transfer of deferred income 18082830.68 38449192.67
Software tax refund 1596783.94 3434829.42
Post subsidies 110985.80 541457.45
Subsidies for L/C exports 1158714.67 2034374.00
Tax rebates and refunds 56768387.57 137917215.41
55. Investment income
196Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent period Amount incurred last period
Returns on long-term equity investments
calculated by the equity method -41296057.12 -30242661.05
Return on investment arising from the
disposal of long-term equity investments 2450000.00 188118447.66
Conversion of long-term equity investments
accounted for by the equity method to 574780174.75
financial assets
Income from remeasurement of residual stock
rights at fair value after losing control power 51474909.15
Interest income from debt investments during
the holding period 9640886.02 36609075.35
Return on investment in the financial assets
held for trading during the holding period 4240444.62 9383976.00
Income from the derecognition of financial
assets at amortized cost -1970677.82
Investment income from disposal of financial
assets at fair value through profit or loss 11456.91 -3794910.98
Others 31971391.61 500000.00
Total 5047444.22 826829010.88
56. Income from changes in the fair value
Sources of income from changes in the fair Amount incurred in the
value current period Amount incurred last period
Financial assets at fair value through profit or
loss -179800523.76 -132580077.43
Total -179800523.76 -132580077.43
57. Credit impairment loss
Item Amount incurred in thecurrent period Amount incurred last period
Bad debt loss of notes receivable -16435.60 6446862.01
Bad debt loss of accounts receivable -25990993.24 -50164953.87
Bad debt loss of other accounts receivable -137072004.34 -96474587.50
Total -163079433.18 -140192679.36
58. Impairment losses on assets
Item Amount incurred in thecurrent period Amount incurred last period
197Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent period Amount incurred last period
Inventory depreciation loss and contract
performance cost impairment loss -81109796.34 -15274484.20
Impairment loss of long-term equity
investments -245911.63
Impairment loss on fixed assets -10646284.08
Contractual asset impairment loss -10874.90 -9012.56
Total -92012866.95 -15283496.76
59. Asset disposal income ("-" for loss)
Amount recorded
Item Amount incurred in Amount incurred into the non-the current period last period recurring profit or
loss of current period
Incomes from disposal of held-for-
sale assets
Incomes from disposal of non-current
assets 590329.38 64713.62 590329.38
Including: incomes from disposal of
non-current assets not classified as 590329.38 64713.62 590329.38
held-for-sale assets
Including: Fixed assets disposal
income 54072.55 -195494.55 54072.55
Intangible assets disposal income 18588.36
Income from disposal of
construction in progress
Right-of-use assets disposal
income 536256.83 241619.81 536256.83
Income from non-monetary assets
exchange
Income from disposal of non-current
assets in debt restructuring
Total 590329.38 64713.62 590329.38
60. Non-operating income
（1） List of Non-operating Income
Amount recorded
Item Amount incurred in Amount incurred into the non-the current period last period recurring profit or
loss of current period
198Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount recorded
Item Amount incurred in Amount incurred into the non-the current period last period recurring profit or
loss of current period
Compensation and penalty income 3092879.89 2522169.54 3092879.89
Government grants not related to the
ordinary activities of the enterprise 8708660.28
Non-current assets damage and
retirement gains 7433.54 450.00 7433.54
Others 12673210.46 6094337.36 12673210.46
Total 15773523.89 17325617.18 15773523.89
（2） Government subsidies recorded in profit or loss of the current period
The Company had no government subsidies recorded in profit or loss in the current period.
61. Non-operating expenses
Amount recorded
Item Amount incurred in Amount incurred into the non-the current period last period recurring profit or
loss of current period
Losses on damage and scraping of
non-current assets 2221846.15 1419908.80 2221846.15
Compensation expense 294044.54 54800.00 294044.54
Others 3639914.15 2851899.22 3639914.15
Total 6155804.84 4326608.02 6155804.84
62. Income tax expense
（1） Income tax expense
Item Amount incurred in the currentperiod Amount incurred last period
Income tax expense in the current
period 7537422.29 27239426.46
Deferred income tax expense -58813265.42 -43950094.04
Total -51275843.13 -16710667.58
（2） Adjustment process of accounting profits and income tax expenses
Item Amount incurred in the current period
Total consolidated profit in the current period -1331813998.08
Income tax expense calculated at legal/applicable tax rate -332953499.52
Impact of different tax rates applied by subsidiaries 49670857.48
199Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in the current period
Impact of income tax in the periods before adjustment 2029136.42
Impact of non-taxable income -1326854.19
Impacts of non-deductible costs expenses and losses 6364150.59
Impact of using deductible losses on the deferred tax assets not
recognised previously -3249242.62
Impact of deductible temporary differences or deductible
losses of deferred tax assets not recognised in the current 232204752.55
period
Changes in the balance of deferred income tax assets/
liabilities in previous period due to adjustment of tax rate
Others -4015143.83
Income tax expense -51275843.13
63. Other comprehensive income
For details please refer to "Note VI-44 Other comprehensive income".
64. Items in the cash flow statement
（1） Cash related to operating activities
1） Other cash received related to operating activities
Item Amount incurred in thecurrent period Amount incurred last period
Income from government subsidies 48053764.37 196790552.27
Front money and guarantee deposit 46360237.95 107899740.15
Trading funds 30412346.71 45235678.79
Interest income from bank deposits 42714837.97 49564086.35
Compensation and penalty income 7630486.32 8691566.66
Others 35512873.11 26051273.52
Total 210684546.43 434232897.74
2） Other cash paid related to operating activities
Item Amount incurred in thecurrent period Amount incurred last period
Cash payment fee 402018344.95 535602399.78
Deposit and margin 44313952.61 146237387.07
200Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent period Amount incurred last period
Payment made on behalf 124940.56 5640757.14
Expense for bank handling charges 2373726.27 2735395.17
Others 16687924.10 65077290.21
Total 465518888.49 755293229.37
（2） Cash related to investment activities
1） Significant cash received related to investment activities
Item Amount incurred in thecurrent period Amount incurred last period
Recovery of loan at call 10535206.45 382971149.03
Total 10535206.45 382971149.03
2） Significant cash paid related to investment activities
Item Amount incurred in thecurrent period Amount incurred last period
Payment of loan at call 310116949.03
Total 310116949.03
3） Other cash received related to investment activities
Item Amount incurred in thecurrent period Amount incurred last period
Recovery of loan at call 10535206.45 382971149.03
Cash received from acquisition of
subsidiaries
Others 12609773.16 46988449.65
Total 23144979.61 429959598.68
4） Other cash paid related to investment activities
Item Amount incurred in thecurrent period Amount incurred last period
Payment of loan at call 310116949.03
Cash paid for disposal of subsidiaries
Others 2127401.00 161037718.80
201Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in thecurrent period Amount incurred last period
Total 2127401.00 471154667.83
（3） Cash related to financing activities
1） Other proceeds received related to financing activities
Item Amount incurred in thecurrent period Amount incurred last period
Recovery of margin deposit pledged 354016478.39 219929641.72
Receiving loan at call 50370200.00
Others
Total 354016478.39 270299841.72
2） Other cash paid related to financing activities
Item Amount incurred in thecurrent period Amount incurred last period
Deposit as margin for pledge 663728905.41 401172422.54
Cash paid for leases 21561318.50 62969375.44
Retuning loan at call 17268436.34 1870614.17
Financing cost 13578122.88 20729450.01
Others 4101071.57
Total 720237854.70 486741862.16
202Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
3） Changes in liabilities arising from financing activities
Increase in the current period Decrease in the current period
Item Opening balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes
Non-current liabilities due
within one year 5314147396.36 3554889000.05 4420572739.53 847524249.31 3600939407.57
Short-term loans 6390592056.27 4722488141.61 95250537.68 4698063104.58 180000.03 6510087630.95
Long-term loans 7779150079.88 2399991403.90 220066042.50 474380098.93 2719039089.72 7205788337.63
Bonds payable 2426992578.67 2292640000.00 916756951.59 8495261.95 830985555.48 4796908712.83
Lease liabilities 160218818.92 38146433.42 18785621.02 13638418.76 165941212.56
Long-term payables 6135734.07 156196.78 1156606.99 177977.28 4957346.58
Total 22077236664.17 9415119545.51 4825265162.02 9621453433.00 4411545290.58 22284622648.12
203Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
（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 1011509768.95
Acquisition of long-term assets by endorsement of notes
receivable 47756919.89
Other payments made by endorsement of notes receivable 86393313.21
65. Supplementary data on the statements of cash flows
（1） Supplementary data on the statements of cash flows
Item Amount of currentperiod Amount of last period
1. Reconciliation of net profit to cash flows from
operating activities: — —
Net profit -1280538154.95 -328427966.51
Add: Provision for asset impairment 92012866.95 15283496.76
Credit impairment loss 163079433.18 140192679.36
Depreciation of fixed assets depletion of oil and gas
assets and depreciation of productive biological assets 229778679.61 217019718.21
Depreciation of right-of-use assets 28010441.12 11748166.57
Amortisation of intangible assets 25884982.90 26128581.85
Amortisation of long-term prepaid expense 68829106.66 62948271.42
Losses on disposal of fixed assets intangible assets
and other long-lived assets (" " indicates income) -590329.38 -64713.62
Losses on scrap of fixed assets (" " indicates income) 2214412.61 1419458.80
Losses on changes in fair value (" " indicates income) 179800523.76 132580077.43
Finance costs (" " indicates income) 354429278.33 383689359.03
Investment loss (" " indicates income) -5047444.22 -826829010.88
Decrease in deferred income tax assets (" " indicates
increase) -13013812.53 -154867914.83
Increase in deferred income tax liabilities (" " indicates -45799452.88 110917820.79
204Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount of currentperiod Amount of last period
decrease)
Decrease in inventories (" " indicates increase) -286354098.48 -265531923.08
Decrease in accounts receivable generated from
operating activities (" " indicates increase) 106159668.41 13821648.87
Increase in accounts payable used in operating activities
(" " indicates decrease) -40111635.54 296871337.26
Others -18082830.68 -38449192.67
Net cash flows from operating activities -439338365.13 -201550105.24
2. Significant investment and financing activities not
involving cash
Conversion of liabilities into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Balance of cash at the end of the period 4378374510.08 6030068656.57
Less: Opening balance of cash 5674784349.55 5461912010.90
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1296409839.47 568156645.67
（2） Net cash paid for the acquisition of subsidiaries in the current period
No such cases in the Reporting Period.
（3） Net cash received for the disposal of subsidiaries in the current period
No such cases in the Reporting Period.
（4） Composition of cash and cash equivalents
Item Closing balance Opening balance
Cash 4378374510.08 5674784349.55
Including: Cash on hand 469.28
Bank deposits available for payment at any time 4375229927.84 5672034875.67
Other monetary funds available for payment at any
time 3144582.24 2749004.60
205Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Balance of cash and cash equivalents at the end of the
period 4378374510.08 5674784349.55
（5） Presentation of cash and cash equivalents with restricted use
Reasons for classifying
Item Amount of currentperiod Amount of last period the funds as cash andcash equivalents
The proceeds can be
used at any time to
Project loan proceeds 22487519.50 20347896.55 make payments and
such payments can only
be made for projects
The proceeds can be
used at any time to
Project pre-sale funds 18266154.30 22377807.75 make payments and
such payments can only
be made for projects
Total 40753673.80 42725704.30 —
（6）Monetary funds not classified as cash and cash equivalents
Reasons for not
Item Amount of current Amount of last period classifying the funds asperiod cash and cash
equivalents
It is pledged for
Cash deposit 441866862.11 440390112.54 borrowing or deposit forissuance of banker
acceptance
The management
Time deposits 469680000.00 226700000.00 intends to hold the
deposits to maturity
Frozen funds 224449207.24 211180037.05 Not readily available forpayment
Total 1135996069.35 878270149.59 —
66. Items in the Statement of Changes in Shareholders' Equity
No "other" amount in the closing amount of last year was adjusted in the current period.
67. Foreign currency monetary items
（1） Foreign currency monetary items
Item Period-end foreign Exchange rate Period-end balancecurrency balance denominated in RMB
Monetary assets
206Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Period-end foreign Exchange rate Period-end balancecurrency balance denominated in RMB
Including: USD 66033733.90 7.1268 470609214.76
EUR 102467.40 7.6617 785074.48
EGP 55989392.53 0.1484 8307832.66
GBP 1.32 9.0430 11.94
HKD 3461326.45 0.9127 3159083.42
CAD 6.96 5.2274 36.38
PLN 3231330.02 1.7689 5715829.73
Accounts receivable
Including: USD 83486351.12 7.1268 594990527.16
EUR 439537.80 7.6617 3367606.76
EGP 2131.64 0.1484 316.30
HKD 57955633.95 0.9127 52894947.99
AUD 49764.00 4.7992 238827.39
Accounts payable
Including: USD 5750797.03 7.1268 40984780.27
HKD 923023.67 0.9127 842425.24
Other accounts receivable
Including: USD 108427213.73 7.1268 772739066.81
EGP 108000.00 0.1484 16025.28
HKD 1028048.88 0.9127 938279.65
JPY 21400000.00 0.0501 1072011.60
Accounts payable
Including: USD 33913641.95 7.1268 241695743.45
EUR 48742.86 7.8771 383952.38
EGP 44720358.59 0.2338 10457617.06
HKD 906393.76 0.9127 827247.46
Other payables
Including: USD 4401044.69 7.1268 31365365.30
EUR 152526.56 7.6617 1168612.74
207Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Period-end foreign Period-end balancecurrency balance Exchange rate denominated in RMB
EGP 411311.00 0.2338 96182.88
HKD 2161652.99 0.9127 1972897.45
（2） Overseas entities
The significant overseas entities include Hongdin Trading Hong Kong Konka Chain Kingdom
Memory Technologies Kangjietong 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.VII. R&D expenditures
Item Amount incurred in the currentperiod Amount incurred last period
Salary 112601611.50 125331251.82
Depreciation and amortisation
charge 55043697.25 52673986.51
New product trial production
expense 13867547.29 12377094.01
Material expense 9254000.43 17796228.66
Commission service fee 222156.14 2048184.94
Testing expense 2797313.59 3249155.22
Information use fee 369876.67 360938.22
Others 20421823.94 23197053.73
Total 214578026.81 237033893.11
Including: Expensed R&D
expenditure 214578026.81 237033893.11
Capitalised R&D expenditure
VIII. Changes in the Scope of Consolidation
1. Combinations of businesses not under common control
The Company had no combinations of businesses not under common control in the Reporting
Period.
2. Combinations of businesses under common control
The Company had no combinations of businesses under common control in the Reporting Period.
208Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
3. Disposal of subsidiaries
No such cases in the Reporting Period.
4. Changes in the scope of consolidation due to other reasons
(1) Subsidiaries established in the current period
No subsidiaries were established in the current period.
(2) Subsidiaries cancelled in the current period
Subsidiary Registered capital Shareholding Liquidation completion(RMB'0000) percentage (%) time
Chengdu Anren 500.00 51.00 28 April 2024
Wankaida 1000.00 100.00 22 January 2024
Konka Intelligent
Manufacturing 2000.00 51.00 29 February 2024
(3) Other
On 29 February 2024 the People's Court of Ganjingzi District Dalian Liaoning Province issued a
civil ruling stipulating that the bankruptcy and liquidation application submitted by the Company's
subsidiary Konka Huanjia shall be accepted and relevant assets were officially handed over to the
receiver on 14 March 2024. The control over them has been transferred and the assets are no
longer included in the scope of consolidation.
209Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
IX. Interests in other entities
1. Interests in subsidiaries
（1） Composition of the business group
Shareholding percentage
No. Subsidiary Main place of Place of registration Business nature (%) Acquisitionbusiness method
Direct Indirect
1 Konka Ventures Guangdong Guangdong Enterprise management consulting incubation EstablishmentShenzhen Shenzhen management housing leasing etc. 51 or investment
2 Yantai Konka Shandong Yantai Shandong Yantai Other professional consultation and Establishmentinvestigation 51 or investment
3 Konka Enterprise Service Guizhou Guiyang Guizhou Guiyang Enterprise management consulting 51 Establishmentor investment
4 Yibin Konka Incubator Sichuan Yibin Sichuan Yibin Commercial services 51 Establishmentor investment
5 Anhui Konka Anhui Chuzhou Anhui Chuzhou Manufacturing 78 Establishmentor investment
6 Kangzhi Trade Anhui Chuzhou Anhui Chuzhou Wholesale 78 Establishmentor investment
7 Konka Electronic Materials Guangdong Guangdong Other science and technology promotion EstablishmentShenzhen Shenzhen services 100 or investment
8 Konka Unifortune Guangdong GuangdongShenzhen Shenzhen Trade and services 51
Establishment
or investment
9 Jiali International China Hong Kong China Hong Kong Trade and services 51 Establishmentor investment
10 Dongguan Konka Guangdong Guangdong Manufacturing 75 25 EstablishmentDongguan Dongguan or investment
11 Suining Konka Smart Sichuan Suining Sichuan Suining Wholesale 100 Establishmentor investment
12 Konka Europe Germany Frankfurt Germany Frankfurt International trade 100 Establishmentor investment
210Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
13 Telecommunication Guangdong Guangdong Manufacturing 75 25 EstablishmentTechnology Shenzhen Shenzhen or investment
14 Konka Mobility China Hong Kong China Hong Kong Commerce 100 Establishmentor investment
15 Mobile Interconnection Guangdong GuangdongShenzhen Shenzhen Commerce 100
Establishment
or investment
16 Sichuan Konka Sichuan Yibin Sichuan Yibin Manufacturing 100 Establishmentor investment
17 Yibin Smart Sichuan Yibin Sichuan Yibin Manufacturing 100 Establishmentor investment
18 Anhui Tongchuang Anhui Chuzhou Anhui Chuzhou Manufacturing 100 Establishmentor investment
19 Anhui Electrical Appliance Anhui Chuzhou Anhui Chuzhou Manufacturing 51 Establishmentor investment
20 Frestec Refrigeration Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
21 Frestec Smart Home Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
22 Frestec Electrical Appliances Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
23 Frestec Household Appliances Henan Xinxiang Henan Xinxiang Manufacturing 51 Establishmentor investment
24 Jiangsu Konka Smart Jiangsu Changzhou Jiangsu Changzhou Manufacturing 51 Establishmentor investment
25 Kangjiatong Sichuan Yibin Sichuan Yibin Trade and services 100 Establishmentor investment
26 Pengrun Technology Guangdong GuangdongShenzhen Shenzhen Trade and services 51
Establishment
or investment
27 Jiaxin Technology China Hong Kong China Hong Kong Trade and services 51 Establishmentor investment
28 Beijing Konka Electronic Beijing Beijing Sale of home appliance 100 Establishmentor investment
211Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of (%) Acquisitionbusiness Place of registration Business nature method
Direct Indirect
29 Tianjin Konka Tianjin Pilot Free Tianjin Pilot Free Service Industry 100 EstablishmentTrade Zone Trade Zone or investment
30 Konka Circuit Guangdong Guangdong EstablishmentShenzhen Shenzhen Manufacturing 100 or investment
31 Boluo Precision Guangdong Boluo Guangdong Boluo Manufacturing 100 Establishmentor investment
32 Boluo Konka Guangdong Boluo Guangdong Boluo Manufacturing 100 Establishmentor investment
33 Hong Kong Konka China Hong Kong China Hong Kong International trade 100 Establishmentor investment
34 Hongdin Invest China Hong Kong China Hong Kong Investment holding 100 Establishmentor investment
35 Chain Kingdom MemoryTechnologies China Hong Kong China Hong Kong International trade 51
Establishment
or investment
36 Zhongkang Semiconductor(Shaoxing) Zhejiang Shaoxing Zhejiang Shaoxing Trade and services 51
Establishment
or investment
37 Hongjet China Hong Kong China Hong Kong Trade and services 51 Establishmentor investment
38 Hongdin Trading China Hong Kong China Hong Kong International trade 100 Establishmentor investment
39 Kanghao Technology Egypt Cairo Egypt Cairo International trade 67 Establishmentor investment
40 Konka North America America California America California International trade 100 Establishmentor investment
41 Konka Investment Guangdong GuangdongShenzhen Shenzhen Capital market services 100
Establishment
or investment
42 Yibin Konka Technology Park Sichuan Yibin Sichuan Yibin Industrial park development and operation Establishmentmanagement 100 or investment
43 Konka Capital Guangdong Guangdong EstablishmentShenzhen Shenzhen Capital market services 100 or investment
212Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of Place of registration Business nature (%) Acquisitionbusiness method
Direct Indirect
44 Konka Suiyong Guangdong GuangdongShenzhen Shenzhen Commercial services 51
Establishment
or investment
45 Shengxing Industrial Guangdong GuangdongShenzhen Shenzhen Commercial services 51
Establishment
or investment
46 Zhitong Technology Guangdong GuangdongShenzhen Shenzhen Software and information technology services 51
Establishment
or investment
47 Electronics Technology Guangdong GuangdongShenzhen Shenzhen Manufacturing 100
Establishment
or investment
48 Shenzhen Kangcheng Guangdong GuangdongShenzhen Shenzhen Software and information technology services 100
Establishment
or investment
49 Xiaojia Technology Guangdong Guangdong EstablishmentShenzhen Shenzhen Retail trade 100 or investment
50 Haimen Konka Jiangsu Nantong Jiangsu Nantong Trade and services 100 Establishmentor investment
51 Chengdu Konka Smart Sichuan Chengdu Sichuan Chengdu Trade and services 100 Establishmentor investment
52 Chengdu Konka Electronic Sichuan Chengdu Sichuan Chengdu Manufacturing 100 Establishmentor investment
53 XingDa HongYe Guangdong GuangdongZhongshan Zhongshan Manufacturing 51
Establishment
or investment
54 Liaoyang Kangshun Smart Liaoning Liaoyang Liaoning Liaoyang Wholesale 100 Establishmentor investment
55 Liaoyang KangshunRenewable Liaoning Liaoyang Liaoning Liaoyang
Comprehensive utilization of renewable 100 Establishmentresources or investment
56 Nanjing Konka Jiangsu Nanjing Jiangsu Nanjing Wholesale 100 Establishmentor investment
57 Shanghai Konka Shanghai Shanghai Real estate 100 Establishmentor investment
58 Yantai Kangjin Shandong Yantai Shandong Yantai Real estate 62.8 Establishmentor investment
213Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of Place of registration Business nature (%) Acquisitionbusiness method
Direct Indirect
59 Jiangxi Konka Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51 Establishmentor investment
60 Xinfeng Microcrystalline Jiangxi Nanchang Jiangxi Nanchang Manufacturing and processing 51 Establishmentor investment
61 Shenzhen Nianhua Guangdong Guangdong Commercial services 100 EstablishmentShenzhen Shenzhen or investment
62 Shenzhen KONSEMI Guangdong Guangdong EstablishmentShenzhen Shenzhen Semiconductors 100 or investment
63 Chongqing Konka Chongqing Chongqing Software and information technology services 100 Establishmentor investment
64 Konka Eco-Development Guangdong Guangdong Commercial services 51 EstablishmentShenzhen Shenzhen or investment
65 Suining Konka Industrial Park Sichuan Suining Sichuan Suining Industrial park development and operationmanagement 100
Establishment
or investment
66 Konka Ronghe Zhejiang Jiaxing Zhejiang Jiaxing Wholesale and retail trade 51 Establishmentor investment
67 Suining ElectronicTechnological Innovation Sichuan Suining Sichuan Suining Commercial services 100
Establishment
or investment
68 Shenzhen Chuangzhi Guangdong GuangdongElectrical Appliances Shenzhen Shenzhen Wholesale 100
Establishment
or investment
69 Chongqing KonkaOptoelectronic Technology Chongqing Chongqing Research & experiment development 70 5
Establishment
or investment
70 Kowin Memory (Shenzhen) Guangdong Guangdong Computer telecommunications and other EstablishmentShenzhen Shenzhen electronic equipment manufacturing 100 or investment
71 Konka Xinyun Semiconductor Jiangsu Yancheng Jiangsu Yancheng Computer telecommunications and other Establishmentelectronic equipment manufacturing 100 or investment
72 Jiangkang (Shanghai)Technology Shanghai Shanghai Research & experiment development 51
Establishment
or investment
73 Ningbo Kanghr Electrical Zhejiang Ningbo Zhejiang Ningbo
Establishment
Electrical machinery and equipment 60 or investment
214Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of Place of registration Business nature (%) Acquisitionbusiness method
Direct Indirect
Appliance manufacturing
74 Suining Jiarun Property Sichuan Suining Sichuan Suining Real estate 100 Establishmentor investment
75 Yibin Kangrun Sichuan Yibin Sichuan Yibin Ecological protection and environmentalgovernance services 67
Establishment
or investment
76 Hainan Konka MaterialTechnology Hainan Haikou Hainan Haikou Commercial services 100
Establishment
or investment
77 Jiangxi High TransparentSubstrate Jiangxi Jiujiang Jiangxi Jiujiang Manufacturing and processing 51
Establishment
or investment
78 Nantong Hongdin Jiangsu Nantong Jiangsu Nantong Computer telecommunications and other 100 Establishmentelectronic equipment manufacturing or investment
79 Chuzhou Konka Anhui Chuzhou Anhui Chuzhou Manufacturing 94.9 Establishmentor investment
80 Konka Soft Electronic Sichuan Suining Sichuan Suining Manufacturing 97.5 Establishmentor investment
81 Konka Hongye Electronics Sichuan Suining Sichuan Suining Manufacturing 95.05 Establishmentor investment
82 Kowin Memory (Hong Kong) China Hong Kong China Hong Kong Wholesale of computers software and auxiliary Establishmentequipment 100 or investment
83 Konka Cross-border (Hebei) Hebei Handan Hebei Handan Wholesale 100 Establishmentor investment
84 Konka Huazhong Hunan Changsha Hunan Changsha Commercial services 100 Establishmentor investment
85 Yibin Kangrun Medical Sichuan Yibin Sichuan Yibin Ecological protection and environmental Establishmentgovernance services 63.65 or investment
86 Shanxi Konka Intelligent Shanxi Xi'an Shanxi Xi'an Manufacture of household cleaning and sanitary 51 Establishmentelectrical appliances or investment
87 Chongqing Xinyuan Chongqing Chongqing Science and technology promotion and EstablishmentSemiconductor application services 75 or investment
215Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place of Place of registration Business nature (%) Acquisitionbusiness method
Direct Indirect
88 Anlu Konka Hubei Anlu Hubei Anlu Software and information technology services 100 Establishmentor investment
89 Kanghong Dongsheng Guangdong Guangdong EstablishmentShenzhen Shenzhen Commercial services 95.09 or investment
Guizhou Qiannan Guizhou Qiannan
90 Guizhou Konka New Material Buyi and Miao Buyi and MiaoTechnology Autonomous Autonomous Manufacturing and processing 51
Establishment
or investment
Prefecture Prefecture
91 Guangdong Xinwei Guangdong Lvfeng Guangdong Lvfeng Semiconductors 100 Establishmentor investment
Guizhou Qiannan Guizhou Qiannan
92 Guizhou Kanggui Material Buyi and Miao Buyi and Miao EstablishmentTechnology Autonomous Autonomous Manufacturing and processing 70 or investment
Prefecture Prefecture
93 Nantong Kanghai Jiangsu Nantong Jiangsu Nantong Real estate 51 Establishmentor investment
94 Chongqing Kangyiyun Chongqing Chongqing Real estate 80 Establishmentor investment
95 Jiangxi Konka High-tech Park Jiangxi Shangrao Jiangxi Shangrao Commercial services 100 Establishmentor investment
96 Shangrao Konka ElectronicTechnology Innovation Jiangxi Shangrao Jiangxi Shangrao Research & experiment development 100
Establishment
or investment
97 Guizhou Konka New Energy Guizhou Kaili Guizhou Kaili Manufacture of non-metallic mineral products 98 Establishmentor investment
98 Zhejiang Konka Electronic Zhejiang Shaoxing Zhejiang Shaoxing Research & experiment development 100 Establishmentor investment
99 Zhejiang Konka TechnologyIndustry Zhejiang Shaoxing Zhejiang Shaoxing Commercial services 51 49
Establishment
or investment
100 Xi'an Konka Intelligent Shanxi Xi'an Shanxi Xi'an Wholesale 51 Establishmentor investment
101 Xi'an Konka Network Shanxi Xi'an Shanxi Xi'an EstablishmentComputer telecommunications and other 100 or investment
216Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Shareholding percentage
No. Subsidiary Main place ofbusiness Place of registration Business nature
(%) Acquisition
method
Direct Indirect
electronic equipment manufacturing
102 Xi'an Kanghong TechnologyIndustry Shanxi Xi'an Shanxi Xi'an Commercial services 40 60
Establishment
or investment
103 Xi'an Konka IntelligentTechnology Shanxi Xi'an Shanxi Xi'an Retail trade 100
Establishment
or investment
104 Anhui Konka Low Carbon Anhui Ma'anshan Anhui Ma'anshan Wholesale 55 Establishmentor investment
105 Kanghong Xintong Guangdong Guangdong Commercial services 95.09049 EstablishmentShenzhen Shenzhen or investment
106 Songyang Industry Operation Zhejiang Lishui Zhejiang Lishui Software and information technology services 51 Establishmentor investment
107 Kangyan Technology Guangdong Guangdong Computer telecommunications and other EstablishmentShenzhen Shenzhen electronic equipment manufacturing 100 or investment
108 Konka Photovoltaic Zhejiang Hangzhou Zhejiang Hangzhou Science and technology promotion and 60 EstablishmentTechnology application services or investment
109 Songyang Konka Intelligent Zhejiang Lishui Zhejiang Lishui Wholesale 100 Establishmentor investment
110 Konka North China Tianjin Tianjin Electrical machinery and equipment 100 Establishmentmanufacturing or investment
111 Digital Technology Guangdong GuangdongShenzhen Shenzhen Software and information technology services 100
Establishment
or investment
（2）Major non-wholly-owned subsidiaries
Dividends declared to be
Subsidiary Shareholding of minority
Profit or loss attributable
to minority shareholders distributed to minority Closing balance of minorityshareholders in the current period shareholders in the current shareholders' equitiesperiod
217Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Anhui Konka Electronic Co. Ltd. 22.00% 1640884.45 109418450.03
（3） Key financial data on major non-wholly-owned subsidiaries
Closing balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Anhui Konka Electronic Co.Ltd. 2971965145.27 848965358.81 3820930504.08 3103220127.80 166769283.06 3269989410.86
(Continued)
Opening balance
Subsidiary
Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Anhui Konka Electronic Co.Ltd. 1603653502.77 871575618.36 2475229121.13 1774223005.73 159000548.27 1933223554.00
(Continued)
Amount incurred in the current period
Subsidiary
Operating income Net profit Total comprehensive income Cash flows from operatingactivities
Anhui Konka Electronic Co. Ltd. 510624823.36 7458565.66 7458565.66 9930838.81
(Continued)
Amount incurred last period
Subsidiary
Operating income Net profit Total comprehensive income Cash flows from operatingactivities
218Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount incurred last period
Subsidiary
Operating income Net profit Total comprehensive income Cash flows from operatingactivities
Anhui Konka Electronic Co. Ltd. 972416661.43 -12062430.83 -12062430.83 6806364.98
219Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2. Interests in joint ventures or associated enterprises
（1）Major joint ventures or associated enterprises
Shareholding Accounting
Name of the joint Main processing method
venture or associated place of Place of Business
percentage (%)
for investment in
enterprise business registration nature joint ventures or
Direct Indirect associated
enterprises
Dongfang Jiakang
No.1 (Zhuhai) Private Investment
Equity Investment Zhuhai Zhuhai management 49.95 Equity method
Fund (LP)
Shenzhen Jielunte Professional
Technology Co. Ltd. Shenzhen Shenzhen machinery 42.79 Equity methodmanufacturing
（2） Key financial data on significant associated enterprises
Amount incurred at the end of the period/in the current
period
Item
Dongfang Jiakang No.1
(Zhuhai) Private Equity Shenzhen Jielunte
Investment Fund (LP) Technology Co. Ltd.Current assets 682532551.61 276265292.05
Non-current assets 375613432.02
Total assets 682532551.61 651878724.07
Current liabilities 10026785.45 283099134.56
Non-current liabilities 168822795.30
Total liabilities 10026785.45 451921929.86
Equities of minority shareholders 7252798.82
Equities attributable to shareholders of the
parent company 672505766.16 192703995.39
Share of net assets calculated based on the
shareholding 335916630.20 82458039.63
Adjustments
- Goodwill
- Internal unrealised profit
220Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount incurred at the end of the period/in the current
period
Item
Dongfang Jiakang No.1
(Zhuhai) Private Equity Shenzhen Jielunte
Investment Fund (LP) Technology Co. Ltd.- Others
Carrying value of equity investments in
associated enterprises 335916630.20 82458039.63
Fair values of equity investments of joint
ventures with quoted prices
Operating income 165625501.64
Finance costs -34467.40 1873337.25
Income tax expense 4233127.86
Net profit 34467.40 -18219902.67
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 34467.40 -18219902.67
Dividends received from associated
enterprises in the current year
(Continued)
Amount incurred at the beginning of the period/in last period
Item Dongfang Jiakang No.1
(Zhuhai) Private Equity Shenzhen Jielunte
Investment Fund (LP) Technology Co. Ltd.Current assets 686882241.74 274817240.18
Non-current assets 338361205.79
Total assets 686882241.74 613178445.97
Current liabilities 10026785.45 261433145.90
Non-current liabilities 133388974.62
Total liabilities 10026785.45 394822120.52
Equities of minority shareholders 9322847.51
Equities attributable to shareholders of the
parent company 676855456.29 209033477.94
Share of net assets calculated based on the
shareholding 338089300.42 94917575.00
221Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount incurred at the beginning of the period/in last period
Item Dongfang Jiakang No.1
(Zhuhai) Private Equity Shenzhen Jielunte
Investment Fund (LP) Technology Co. Ltd.Adjustments
- Goodwill
- Internal unrealised profit
- Others
Carrying value of equity investments in
associated enterprises 338089300.42 94917575.00
Fair values of equity investments of joint
ventures with quoted prices
Operating income 168815683.51
Finance costs -284133.17 1539262.28
Income tax expense 2245248.55
Net profit 25641054.77 -13237135.87
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 25641054.77 -13237135.87
Dividends received from associated
enterprises in the current year
（3） Combined financial data on insignificant joint ventures and associated
enterprises
Amount incurred at the end of Amount incurred at the
Item the period/in the current beginning of the period/in
period last period
Associated enterprise
Total carrying value of investment 5075226991.71 5133476987.87
The total of following items according to the
shareholding proportions
Net profit -31243007.66 -37153622.36
Other comprehensive income -83919.23
Total comprehensive income -31326926.89 -37153622.36
222Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
X. Government grants
1. Liability items involving government subsidies
Amount
recognised Amount
Subsidies as non- transferred Other
Account Opening increased in operating to other changes in Closing Related to
title balance the current income in incomes in the current balance assets/
period the the current period income
current period
period
Deferred
revenue 425135237.90 15638700.00 18082830.68 14000000.00 408691107.22
Related to
assets/income
2. Government subsidies recognised as profit and loss of the Reporting Period
Account title Amount incurred in the currentperiod Amount incurred last period
Other income 56768387.57 137917215.41
XI. 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 VI for detailed descriptions of
various financial instruments. The risks related to these financial instruments and the risk
management policies adopted by the Group to mitigate these risks are described below. The
management of the Group 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 minimize the negative impact of these risks on the Company's
operating results and maximize 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 30 June 2024 the Group's assets and
liabilities were mainly the balance in RMB except for the assets or liabilities of a balance in USD
as listed below.Item Closing balance Opening balance
Monetary assets 66195513.58 91184116.43
223Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Accounts receivable 83486351.12 85032871.75
Other accounts receivable 108427213.73 110836591.33
Other payables 4820283.44 3453133.32
Accounts payable 33913641.95 4828295.25
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 30 June 2024 the
balance of such short-term borrowings was RMB6510087630.95.
（2） Credit risk
As of 30 June 2024 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 carrying amount of financial assets recognised in the consolidated balance sheet; for financial
instruments measured at fair value the book value reflects their risk exposure but not the
maximum risk exposure and the maximum risk exposure will change with the change of future
fair value.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 4. Accounts receivable and 7. Other receivables in Note VI.
（3） Liquidity risk
Liquidity risk refers to the risk that the Group is unable to fulfill its financial obligations on the
due date. The Group manages liquidity risk in the method of ensuring that there is sufficient
liquidity to fulfill 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
224Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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:
225Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Amount as of 30 June 2024:
Item Within one year One to two years Two to five years Over five years Total
Financial assets
Monetary assets 5514370579.43 5514370579.43
Held-for-trading financial assets 294937209.31 294937209.31
Notes receivable 301987637.11 301987637.11
Accounts receivable 1361996890.11 294570006.54 156534862.43 43859681.15 1856961440.23
Other accounts receivable 80785644.43 64298860.97 684427848.89 16280.00 829528634.29
Other current assets 2361815002.60 2361815002.60
Financial liabilities
Short-term loans 6510087630.95 6510087630.95
Notes payable 981928381.95 981928381.95
Accounts payable 2320012296.29 390501476.73 217357907.56 12680080.14 2940551760.72
Other payables 1034749812.17 489694436.35 168672631.73 69249298.97 1762366179.22
Payroll payable 198487964.48 198487964.48
Non-current liabilities due within
one year 3600939407.57 3600939407.57
Long-term loans 4232479248.20 1961154263.34 1012154826.09 7205788337.63
Bonds payable 2468093333.41 2328815379.42 4796908712.83
Long-term payables 3734931.39 1222415.19 4957346.58
226Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
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:
H1 2024 H1 2023
Exchange
Item rate
fluctuations Impact on net
Impact on Impact on
profit shareholders'
Impact on net
profit shareholders'equity equity
Appreciation
USD of 1%against 13258840.79 8898925.74 22249707.57 17750467.03
RMB
Depreciation
USD of 1%against -13258840.79 -8898925.74 -22249707.57 -17750467.03
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 themarket 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:
H1 2024 H1 2023
Interest
Item ratefluctuation Impact on net Impact on Impact on
s profit shareholders'
Impact on net
profit shareholders'equity equity
Borrowings at
floating Up 0.5% -24626858.36 -23932778.41 -25773357.94 -24732737.56
interest rates
Borrowings at
floating Down 0.5% 24626858.36 23932778.41 25773357.94 24732737.56
interest rates
227Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
XII. Disclosure of Fair Value
1. Closing fair value of assets and liabilities measured at fair value
Clos ing fa ir va lue
Item Level-1 fair value Level-2 fair value Level-3 fair value
measurement measurement measurement Total
I. Continuous fair value measurement
(I) Held-for-trading financial assets 294937209.31 294937209.31
1. Financial assets measured at fair value through profit and loss for
the Reporting Period 294937209.31 294937209.31
(II) Accounts receivable financing 203279738.30 203279738.30
(III) Other debt investments
(IV) Other equity instruments investments 23841337.16 23841337.16
(V) Investment properties
(VI) Other non-current financial assets 1985908473.73 1985908473.73
Total assets continuously measured at fair value 203279738.30 2304687020.20 2507966758.50
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
228Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2. Basis for determining the market price of continuous and non-continuous level-1 fair value
measurement projects
The first level of the 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
continuous and non-continuous level-2 fair value measurement projects
The Level 2 fair value measurement of input value at Level 2 is the input value observable directly or
indirectly of relevant assets or liabilities exclusive of input value at Level 1.
4. Qualitative and quantitative data on valuation techniques and important parameters adopted for
continuous and non-continuous level-3 fair value measurement projects
The third level of the input is the unobservable input of related assets and liabilities.XIII. Related Party and Related Party Transactions
1. Related party relationship
（1） Parent company of the Company
Shareholding Voting right
Name of the parent Place of Registered percentage of percentage of the
company registration Business nature capital the parent parent companycompany in the in the Company
Company (%) (%)
OCT Group Shenzhen Tourism real estate RMB12electronics 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 IX-1. (1) Subsidiaries for the information of subsidiaries.
（3） Joint ventures and associated enterprises of the Company
Please refer to Note IX-2. (1) Significant joint ventures and associated enterprises for details of significant joint
ventures or associated enterprises of the Company.Information on other joint ventures or associated enterprises having connected transactions with the Company
in the current period or forming balance due to connected transactions made in previous period:
Name Relationship with the Company
229Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Name Relationship with the Company
Anhui Kaikai Shijie E-commerce Co. Ltd. Associated enterprise
Anhui Kangfu New Energy Co. Ltd. Associated enterprise
Anhui Kangta Supply Chain Management Co. Ltd. Associated enterprise
Chuzhou Kangxin Health Industry Development Co. Ltd. Associated enterprise
Chutian Dragon Co. Ltd. Associated enterprise
Orient Excellent (Zhuhai) Asset Management Co. Ltd. Associated enterprise
Dongguan Kangjia New Materials Technology Co. Ltd. Associated enterprise
Dongguan Konka Smart Electronic Technology Co. Ltd. Associated enterprise
Dongguan Guankang Yuhong Investment Co. Ltd. Associated enterprise
Feidi Technology (Shenzhen) Co. Ltd. Associated enterprise
Guangdong Kangyuan Semiconductor Co. Ltd. Associated enterprise
Hefei KONSEMI Storage Technology Co. Ltd. Associated enterprise
Henan Kangfei Intelligent Electric Appliance Co. Ltd. Associated enterprise
Kangkong Venture Capital (Shenzhen) Co. Ltd. Associated enterprise
Nantong Kangjian Technology Industrial Park Operations and
Management Co. Ltd. Associated enterprise
Puchuang Jiakang Technology Co Ltd. Associated enterprise
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. Associated enterprise
Shenzhen Aimijiakang Technology Co. Ltd. Associated enterprise
Shenzhen Kanghongxing Intelligent Technology Co. Ltd. Associated enterprise
Shenzhen Kangpeng Digital Technology Co. Ltd. Associated enterprise
Shenzhen KONKA E-display Co. Ltd. Associated enterprise
Zhejiang Kangying Semiconductor Technology Co. Ltd. (formerly:
Shenzhen Kangying Semiconductor Technology Co. Ltd.) Associated enterprise
Shenzhen Morsemi Semiconductor Technology Co. Ltd. Associated enterprise
230Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Name Relationship with the Company
Shenzhen Kangjia Jiapin Intelligent Electrical Apparatus Technology Co.Ltd. Associated enterprise
Shenzhen Kangxi Technology Innovation Development Co. Ltd. Associated enterprise
Shenzhen RF-Llink Technology Co. Ltd. Associated enterprise
Shenzhen Yaode Technology Co. Ltd. Associated enterprise
Shenzhen Zhongkang Beidou Technology Co. Ltd. Associated enterprise
Sichuan Chengrui Real Estate Co. Ltd. Associated enterprise
KK Smartech Limited Associated enterprise
Yantai Kangyun Industrial Development Co. Ltd. Associated enterprise
Yancheng Kangyan Information Industry Investment Partnership (Limited
Partnership) Associated enterprise
Yibin Kanghui Electronic Information Industry Equity Investment
Partnership (Limited Partnership) Associated enterprise
E3info (Hainan) Technology Co. Ltd. Associated enterprise
Shandong Econ Technology Co. Ltd. Associated enterprise
Chongqing Kangjian Photoelectric Technology Co. Ltd. Associated enterprise
Chongqing Kangxin Equity Investment Fund Limited Partnership (Limited
Partnership) Associated enterprise
Chongqing Kangyiqing Technology Co. Ltd. Associated enterprise
Sichuan Hongxinchen Real Estate Development Co. Ltd. Associated enterprise
Wuhan Kangtang Information Technology Co. Ltd. Associated enterprise
Foshan Zhujiang Media Creative Park Cultural Development Co. Ltd. Associated enterprise
Panxu Intelligence Co. Ltd. Associated enterprise
（4） Other related parties
Names of other related parties Relationship with the Company
HOHOELECTRICAL&FURNITURECO.LIMITED Minority shareholder of subsidiary
231Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Names of other related parties Relationship with the Company
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
Shenzhen New Journey Energy Conservation and Environmental
Protection Service Co. Ltd. Minority shareholder of subsidiary
Central Enterprises Poverty Alleviation (Jiangxi) Industrial Fund
Partnership (L.P.) Minority shareholder of subsidiary
Chongqing Liangshan Industrial Investment Co. Ltd. Minority shareholder of subsidiary
Zhu Xinming Minority shareholder of subsidiary
AUJET INDUSTRY LIMITED Minority shareholder of subsidiary
Chuzhou State-owned Assets Management Co. Ltd. Minority shareholder of subsidiary
Shenzhen Unifortune Supply Chain Management Co. Ltd. Minority shareholder of subsidiary
Guizhou Huajinrun Technology Co. Ltd. Minority shareholder of subsidiary
Shenzhen Henglongtong Technology Co. Ltd. Minority shareholder of subsidiary
Suiyong Rongxin Asset Management Co. Ltd. Minority shareholder of subsidiary
Shenzhen Qianhai Datang Technology Co. Ltd. Minority shareholder of subsidiary
Wu Guoren Minority shareholder of subsidiary
Xiao Yongsong Minority shareholder of subsidiary
Hu Zehong Minority shareholder of subsidiary
Jiangsu Korea Electric Group Co. Ltd. Minority shareholder of subsidiary
Jiangxi Meiji Enterprise Co. Ltd. The company controlled by the minority shareholdersof the subsidiary
Jiangxi Xinzixin Real Estate Co. Ltd. The company controlled by the minority shareholdersof the subsidiary
Dai Rongxing Close family members of minority shareholders of thesubsidiary
232Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Names of other related parties Relationship with the Company
Zhejiang Donghong Asset Management Co. Ltd. Subsidiary of associated enterprise
AMobile Intelligent Corp. Ltd. Subsidiary of associated enterprise
Yantai Kangyue Investment Co. Ltd. Subsidiary of associated enterprise
Chongqing Lanlv Moma Real Estate Development Co. Ltd. Subsidiary of associated enterprise
Anhui Jiasen Precision Technology Co. Ltd. Subsidiary of associated enterprise
Chuzhou Jielunte Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Guangdong Jielunte Technology Co. Ltd. Subsidiary of associated enterprise
Kunshan Jielunte Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Dongguan Kangjie Plastic Mould Co. Ltd. Subsidiary of associated enterprise
Dongguan Jielunte Plastic Mould Technology Co. Ltd. Subsidiary of associated enterprise
Dongguan Xutongda Mould Plastic Co. Ltd. Subsidiary of associated enterprise
Shenzhen Kangying Storage Technology Co. Ltd. Subsidiary of associated enterprise
Shenzhen E-Display Commercial Display Service Co. Ltd. Subsidiary of associated enterprise
Konka E-Display (Hong Kong) Co. Ltd. Subsidiary of associated enterprise
Guangdong KONKA E-display Co. Ltd. Subsidiary of associated enterprise
Shanghai Jiyi Environmental Technology Co. Ltd. Subsidiary of associated enterprise
2. Related-party transactions
（1） Related party transactions involving the purchase and sale of goods and the supply and
acceptance of services
1） Purchasing goods/receiving services
Related party Related party transaction Amount incurred in Amount incurred lastthe current period period
Chuzhou Hanshang Electric Appliance Co. Ltd. Purchase of goods 114880089.88 186735395.72
Puchuang Jiakang Technology Co Ltd. Purchase of goods 37713014.15 82483825.77
233Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Related party transaction Amount incurred in Amount incurred lastthe current period period
OCT Group Co. Ltd. and its subsidiaries and Purchase of goods and
associates services 26734696.17 19556218.59
Shenzhen Jielunte Technology Co. Ltd. and its
subsidiaries Purchase of goods 20726583.10 17989178.13
Korea Electric Group Co. Ltd. and its subsidiaries Purchase of goods 12003676.60 13962407.67
Shenzhen KONKA E-display Co. Ltd. and its
subsidiaries Purchase of goods 4407128.66 10289325.37
Dongguan Kangjia New Materials Technology Co.Ltd.. Purchase of goods 3423338.73 7656559.11
Dongguan Konka Smart Electronic Technology Co. Purchase of goods and
Ltd. services 828076.33 5303236.99
HOHOELECTRICAL&FURNITURECO.LIMITED Purchase of goods 26341.27 5279694.58
Anhui Kaikai Shijie E-commerce Co. Ltd. and its
subsidiaries Purchase of goods 14519171.29
KK Smartech Limited Purchase of goods 7026770.10
Zhejiang Kangying Semiconductor Technology Co.Ltd. and its subsidiaries (formerly: Shenzhen
Kangying Semiconductor Technology Co. Ltd.) and Purchase of goods 4317763.40
its subsidiaries
Subtotal of other related parties Purchase of goods andservices 23017795.17 6384913.67
（2） Information of sales of goods and provision of labour service
Related party Related party transaction Amount incurred in the Amount incurred lastcurrent period period
Chuzhou Hanshang Electric Appliance Co. Ltd. Sales of goods andprovision of labour service 182689651.25 87808617.20
OCT Group Co. Ltd. and its subsidiaries and Sales of goods and
associates provision of labour service 37055797.37 31848071.22
Korea Electric Group Co. Ltd. and its subsidiaries Sales of goods andprovision of labour service 34500419.06 61575942.67
Shenzhen KONKA E-display Co. Ltd. and its Sales of goods and
subsidiaries provision of labour service 32568363.60 9771563.23
Shenzhen Jielunte Technology Co. Ltd. and its Sales of goods and
subsidiaries and associates provision of labour service 10781688.86 31298689.17
Dongguan Konka Smart Electronic Technology Sales of goods and
Co. Ltd. provision of labour service 3647313.53 5049897.52
Zhejiang Kangying Semiconductor Technology
Co. Ltd. and its subsidiaries (formerly: Shenzhen Sales of goods and
Kangying Semiconductor Technology Co. Ltd.) provision of labour service 2427251.90 5789685.32
and its subsidiaries
234Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Related party transaction Amount incurred in the Amount incurred lastcurrent period period
Shenzhen Aimijiakang Technology Co. Ltd. Sales of goods 633048.19 1453563.03
Hefei KONSEMI Storage Technology Co. Ltd. Sales of goods andprovision of labour service 19420.70 8004252.90
E3info (Hainan) Technology Co. Ltd. and its Sales of goods and
subsidiaries provision of labour service 1714.00 9168670.42
Subtotal of other related parties Sales of goods andprovision of labour service 5085298.73 51872181.94
（3） Related party leases
Lease situation
Lessor Lessee Type of leased Lease fee recognised in Lease fee recognised lastassets the current period period
OCT Group Co. Ltd. and its Konka Ventures Development Commercial
subsidiaries (Shenzhen) Co. Ltd. residences and 16202959.98 14099760.00office buildings
Dongguan Guankang
Yuhong Investment Co. Dongguan KonkaElectronic Co. Ltd. Factory 6841431.94 22799157.95Ltd.OCT Group Co. Ltd. and its Commercial
subsidiaries Konka Group Co. Ltd. residences and 351831.90office buildings
（4） Related party guarantees
1） The Company was guarantor
Contracted Actual Whether
Secured party guarantee guarantee Start date of Expiry date of theamount amount Currency guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Boluo Precision 4000.00 1800.00 CNY 15 January 14 January2024 2025 No
Boluo Precision 4500.00 2773.86 CNY 25 August 25 August2023 2026 No
Boluo Precision 2000.00 1215.07 CNY 29 January 29 January2024 2025 No
Konka Circuit 10000.00 3735.16 CNY 19 July 2023 31 January2027 No
Konka Circuit 5000.00 889.04 CNY 22 December 22 December2023 2024 No
Anhui Tongchuang 10000.00 7840.00 CNY 19 October 31 December2023 2024 No
Anhui Tongchuang 5000.00 4980.00 CNY 20 June 2024 29 May 2025 No
Anhui Tongchuang 3000.00 2900.00 CNY 20 November2023 19 May 2025 No
Anhui Tongchuang 5000.00 980.00 CNY 20 May 2024 6 December2024 No
235Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
Secured party guarantee guarantee Currency Start date of Expiry date of theamount amount guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Konka Xinyun
Semiconductor 6000.00 2800.00 CNY 26 May 2024 21 March 2026 No
Konka Xinyun
Semiconductor 8277.66 4281.25 CNY 12 July 2021 11 July 2022 No
Chongqing Konka 38000.00 13730.92 CNY 13 December 13 December2022 2037 No
Electronics Technology 8500.00 3222.64 CNY 2 April 2024 22 March 2025 No
Electronics Technology 50000.00 50000.00 CNY 26 September 11 August2023 2024 No
Dongguan Konka 80000.00 33091.04 CNY 23 June 2021 7 May 2031 No
Telecommunication
Technology 7500.00 1761.23 CNY 23 July 2023 23 July 2024 No
Sichuan Konka 4000.00 2800.00 CNY 23 May 2023 26 April 2026 No
Mobile Interconnection 7000.00 1870.12 CNY 10 November 10 November2023 2024 No
Yibin Smart 980.00 980.00 CNY 27 March 2024 19 March 2025 No
Xi'an Kanghong Technology 30000.00 8145.16 CNY 26 May 2023 31 DecemberIndustry 2032 No
Konka Hongye Electronics 19010.00 5079.56 CNY 24 January 7 November2024 2038 No
Konka Soft Electronic 975.00 34.55 CNY 19 December 19 December2022 2023 No
Ningbo Kanghr Electrical
Appliance 6000.00 1881.83 CNY 2 March 2023 27 July 2024 No
Ningbo Kanghr Electrical
Appliance 6000.00 3000.00 CNY 13 July 2023 12 July 2024 No
Frestec Smart Home 10200.00 2652.00 CNY 30 January 30 January2024 2027 No
Jiangxi Konka 6000.00 1400.00 CNY 15 August 14 August2023 2024 No
Yibin Kangrun 10000.00 10000.00 CNY 13 November 31 December2020 2024 No
Anhui Konka 5500.00 4820.76 CNY 31 August 31 August2023 2024 No
Anhui Konka 18000.00 5560.67 CNY 22 September 21 September2023 2024 No
Anhui Konka 10215.95 8021.11 CNY 10 August2021 15 July 2031 No
Anhui Konka 7000.00 4000.00 CNY 29 October 26 October2021 2026 No
236Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
Secured party guarantee guaranteeamount amount Currency
Start date of Expiry date of the
guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
Anhui Konka 7000.00 4000.00 CNY 24 October 26 October2022 2026 No
Anhui Konka 7000.00 6000.00 CNY 19 September 18 September2022 2023 No
Anhui Konka 5000.00 4843.82 CNY 25 June 2023 24 June 2028 No
Shandong Econ Technology 1623.89 CNY 30 September 29 SeptemberCo. Ltd. 2022 2024 No
Shandong Econ Technology
Co. Ltd. 2748.12 177.92 CNY
23 November
2022 23 May 2024 No
Shandong Econ Technology
Co. Ltd. 1498.97 1498.97 CNY 22 May 2023 21 May 2024 No
Shandong Econ Technology
Co. Ltd. 4996.58 4388.00 CNY 5 July 2023 21 May 2024 No
Shandong Econ Technology
Co. Ltd. 2498.29 2435.11 CNY 19 July 2023 18 July 2024 No
Shandong Econ Technology
Co. Ltd. 999.32 847.42 CNY
28 August
2023 11 June 2024 No
Shandong Econ Technology
Co. Ltd. 1374.06 1374.06 CNY
29 December 28 December
2023 2024 No
Shandong Econ Technology
Co. Ltd. 2498.29 2192.05 CNY
28 December 27 December
2023 2024 No
Shandong Econ Technology 124.91 124.91 CNY 6 February 5 FebruaryCo. Ltd. 2024 2025 No
Shandong Econ Technology
Co. Ltd. 4489.43 3641.50 CNY 1 March 2024
14 December
2024 No
Shandong Econ Technology
Co. Ltd. 499.66 499.66 CNY 30 April 2024 23 April 2025 No
OCT Group 60000.00 60000.00 CNY 8 September 8 September2022 2025 No
OCT Group 60000.00 60000.00 CNY 18 October 18 October2022 2025 No
OCT Group 150000.00 150000.00 CNY 29 January 29 January2024 2027 No
OCT Group 80000.00 80000.00 CNY 18 March 2024 18 March 2027 No
OCT Group 50000.00 50000.00 CNY 22 September 22 September2023 2026 No
237Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Contracted Actual Whether
Secured party guarantee guaranteeamount amount Currency
Start date of Expiry date of the
guarantee guarantee guarantee is
(RMB'0000) (RMB'0000) completed
OCT Group 50000.00 48500.00 CNY 13 December 13 December2023 2026 No
OCT Group 50000.00 50000.00 CNY 26 March 2024 26 March 2027 No
OCT Group 60000.00 60000.00 CNY 25 June 2024 25 June 2026 No
2） As the secured party
Guarantee Whether the
Guarantor amount Currency Start date of Expiry date of
(RMB'0000) guarantee guarantee
guarantee is
completed
Konka Circuit 8200.00 CNY 5 February 2024 4 February 2025 No
Suining Konka Industrial Park 32800.00 CNY 5 February 2024 4 February 2025 No
OCT Group 80000.00 CNY 9 July 2021 9 July 2024 No
OCT Group 60000.00 CNY 8 September 8 September2022 2025 No
OCT Group 60000.00 CNY 18 October 2022 18 October2025 No
OCT Group 120000.00 CNY 14 July 2022 14 July 2025 No
OCT Group 49250.00 CNY 23 August 2022 22 August 2025 No
OCT Group 23000.00 CNY 22 December 22 December2022 2025 No
OCT Group 56000.00 CNY 18 January 2023 18 January 2026 No
OCT Group 50000.00 CNY 22 September 22 September2023 2026 No
OCT Group 48500.00 CNY 13 December 20 December2023 2026 No
OCT Group 50000.00 CNY 26 March 2024 26 March 2027 No
OCT Group 60000.00 CNY 25 June 2024 25 June 2026 No
OCT Group 150000.00 CNY 29 January 2024 29 January 2027 No
OCT Group 80000.00 CNY 18 March 2024 18 March 2027 No
Jiangxi Xinzixin Real Estate Co. Ltd. 686.00 CNY 15 August 2023 14 August 2024 No
Shandong Econ Technology Co. Ltd. 3300.00 CNY 13 November 31 December2020 2024 No
Chuzhou State-owned Assets
Management Co. Ltd. 1060.57 CNY 31 August 2023 31 August 2024 No
238Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee
Guarantor amount Currency Start date of Expiry date of
Whether the
guarantee guarantee guarantee is(RMB'0000) completed
Chuzhou State-owned Assets 22 September 21 September
Management Co. Ltd. 1223.35 CNY 2023 2024 No
Chuzhou State-owned Assets
Management Co. Ltd. 1764.64 CNY 10 August 2021 15 July 2031 No
Chuzhou State-owned Assets
Management Co. Ltd. 880.00 CNY 29 October 2021
26 October
2026 No
Chuzhou State-owned Assets
Management Co. Ltd. 880.00 CNY 24 October 2022
26 October
2026 No
Chuzhou State-owned Assets 1320.00 CNY 19 September 18 SeptemberManagement Co. Ltd. 2022 2023 No
Chuzhou State-owned Assets
Management Co. Ltd. 1065.64 CNY 25 June 2023 24 June 2028 No
Wu Guoren 875.00 USD 31 December 31 December2019 2024 No
Wu Guoren 2425.00 USD 31 December 31 December2019 2024 No
Xiao Yongsong 840.00 USD 31 December 31 December2019 2024 No
Xiao Yongsong 2328.00 USD 31 December 31 December2019 2024 No
Shenzhen Unifortune Supply Chain
Management Co. Ltd. 1391.60 USD 21 June 2021
31 December
2022 No
Shenzhen Unifortune Supply Chain 31 December
Management Co. Ltd. 867.30 USD 21 June 2021 2022 No
Guizhou Huajinrun Technology Co. Ltd. 381.15 USD 1 January 2022 31 December2025 No
Guizhou Huajinrun Technology Co. Ltd. 157.50 USD 1 January 2022 31 December2025 No
Shenzhen Henglongtong Technology 241.40 USD 1 January 2022 31 DecemberCo. Ltd. 2025 No
Shenzhen Henglongtong Technology 31 December
Co. Ltd. 99.75 USD 1 January 2022 2025 No
AUJET INDUSTRY LIMITED 3227.63 USD 10 November 31 December2021 2023 No
AUJET INDUSTRY LIMITED 89.18 USD 10 November 31 December2021 2023 No
AUJET INDUSTRY LIMITED 1029.00 USD 20 July 2020 31 December2023 No
Zhu Xinming 12446.00 CNY 15 October 2022 14 October2023 No
239Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Guarantor amount Currency Start date of Expiry date of
(RMB'0000) guarantee guarantee
guarantee is
completed
Zhu Xinming 3399.49 CNY 1 January 2023 31 December2023 No
Zhu Xinming 13249.19 CNY 19 February 18 February2023 2024 No
Zhu Xinming 6860.00 CNY 1 March 2023 28 February2024 No
Zhu Xinming 2330.54 CNY 9 March 2023 8 March 2024 No
Zhu Xinming 2156.00 CNY 1 April 2023 30 September2023 No
Zhu Xinming 443.45 CNY 13 January 2023 31 December2023 No
Zhu Xinming 44.05 CNY 30 March 2023 31 December2023 No
Zhu Xinming 443.45 CNY 14 April 2023 31 December2023 No
Zhu Xinming 44.05 CNY 30 June 2023 31 December2023 No
Zhu Xinming 443.45 CNY 14 July 2023 31 December2023 No
Zhu Xinming 44.05 CNY 11 October 2023 31 December2023 No
Zhu Xinming 149.45 CNY 13 October 2023 31 December2023 No
Zhu Xinming 44.05 CNY 29 December 31 December2023 2023 No
Zhu Xinming 490.00 CNY 28 February 27 February2023 2024 No
Zhu Xinming 5109.05 CNY 1 January 2023 31 December2023 No
Zhu Xinming 252.63 CNY 13 January 2023 31 December2023 No
Zhu Xinming 101.77 CNY 13 January 2023 31 December2023 No
Zhu Xinming 203.63 CNY 14 April 2023 31 December2023 No
Zhu Xinming 1862.90 CNY 1 January 2023 31 December2023 No
Zhu Xinming 223.85 CNY 17 February 31 December2023 2023 No
Zhu Xinming 93.12 CNY 8 March 2023 31 December2023 No
Zhu Xinming 101.35 CNY 19 May 2023 31 December2023 No
Zhu Xinming 93.12 CNY 8 June 2023 31 December2023 No
Zhu Xinming 93.12 CNY 8 September 31 December2023 2023 No
240Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee
Guarantor amount Currency Start date of Expiry date of
Whether the
(RMB'0000) guarantee guarantee
guarantee is
completed
Zhu Xinming 62.25 CNY 7 December 31 December2023 2023 No
Jiangxi Konka 13431.31 CNY 15 June 2023 8 March 2027 No
Jiangxi High Transparent Substrate 38045.57 CNY 15 June 2023 19 March 2027 No
Jiangxi High Transparent Substrate 258.80 CNY 28 April 2024 6 March 2030 No
Xinfeng Microcrystalline 34475.18 CNY 15 June 2023 31 December2025 No
Hu Zehong Liang Ruiling Dai Yaojin 2205.00 CNY 1 July 2018 31 December2025 No
Hu Zehong Liang Ruiling Dai Yaojin 4899.02 CNY 1 July 2018 31 December2025 No
XingDa HongYe 6591.25 CNY 1 January 2022 31 December2026 No
XingDa HongYe 5366.40 CNY 1 January 2022 31 December2026 No
XingDa HongYe 3124.68 CNY 1 January 2022 31 December2026 No
Suiyong Rongxin Asset Management
Co. Ltd. 2450.00 CNY 1 January 2018 30 June 2024 No
Suiyong Rongxin Asset Management
Co. Ltd. 2842.00 CNY 1 January 2018
31 December
2024 No
Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying Gaokede
Electronics Technology Co. Ltd. 735.00 CNY 1 January 2022 31 December No
Huaying Gaokelong Electronics 2025
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying Gaokede
Electronics Technology Co. Ltd. 488.37 CNY 1 January 2022 31 December No
Huaying Gaokelong Electronics 2025
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Shenzhen Henglongtong Technology
Co. Ltd. Guizhou Huajinrun
Technology Co. Ltd. Huaying Gaokede
Electronics Technology Co. Ltd. 552.72 CNY 1 January 2022 31 December No
Huaying Gaokelong Electronics 2025
Technology Co. Ltd. Shenzhen Baili
Yongxing Technology Co. Ltd.Chuzhou Hanshang Electric Appliance
Co. Ltd. 4533.96 CNY 20 May 2021 19 May 2024 No
Shenzhen Qianhai Datang Technology 17 November 16 November
Co. Ltd. 441.00 CNY 2023 2026 No
241Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Guarantee Whether the
Guarantor amount Currency Start date of Expiry date of guarantee is
(RMB'0000) guarantee guarantee completed
Konka Ventures 1322.54 CNY 15 December 5 November2021 2022 No
（5） Loans from/to related parties
Related party Amount(RMB'0000) Currency Start date Maturity
Borrowing:
OCT Group 81091.00 CNY 10 January 2022 9 January 2025
OCT Group 50000.00 CNY 19 May 2022 18 May 2025
OCT Group 70000.00 CNY 26 May 2022 25 May 2025
Chuzhou Hanshang Electric Appliance Co.Ltd. 12862.50 CNY 1 January 2024 31 December 2024
Chuzhou Hanshang Electric Appliance Co.Ltd. 2450.00 CNY 2 August 2023 2 August 2024
Chuzhou Hanshang Electric Appliance Co.Ltd. 980.00 CNY 14 February 2024 13 February 2025
Shandong Econ Technology Co. Ltd. 1914.00 CNY 20 March 2024 19 March 2025
Kangkong Venture Capital (Shenzhen) Co.Ltd. 245.00 CNY 21 July 2022 18 July 2024
Beijing Xuri Shengxing Technology Co.Ltd. 228.67 CNY 5 December 2022 30 November 2024
Total 219771.17
Lending:
Dongguan Guankang Yuhong Investment
Co. Ltd. 19600.00 CNY 25 September 2023 24 September 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 38974.77 CNY 22 December 2023 21 December 2024
Chuzhou Kangxin Health Industry
Development Co. Ltd. 562.97 CNY 22 December 2023 21 December 2024
Sichuan Chengrui Real Estate Co. Ltd. 14724.50 CNY 21 January 2022 15 April 2025
Yantai Kangyue Investment Co. Ltd. 12852.70 CNY 16 December 2020 5 November 2022
Yantai Kangyun Industrial Development 22600.00 CNY 31 March 2024 31 March 2025
242Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Amount(RMB'0000) Currency Start date Maturity
Co. Ltd.Chongqing Lanlv Moma Real Estate
Development Co. Ltd. 18843.00 CNY 25 November 2020 24 November 2023
Sichuan Hongxinchen Real Estate
Development Co. Ltd. 19879.55 CNY 15 September 2022 27 February 2025
Shandong Econ Technology Co. Ltd. 18315.11 CNY 1 January 2024 20 December 2024
Shandong Econ Technology Co. Ltd. 4996.58 CNY 21 December 2023 20 December 2024
Total 171349.18
（6） Asset transfer and debt restructuring of related parties
Related party Related party transaction Amount incurred in thecurrent period Amount incurred last period
OCT Group Co. Ltd. and its Transfer of patents software
subsidiaries and associates copyrights and trademarks
Total
（7） Remuneration for key management personnel
Project The current period(RMB'0000) Last period (RMB'0000)
Total remuneration 316.25 549.95
3. Balance of amount receivable and payable by related parties
（1） Receivables
Closing balance Opening balance
Related party
Book balance Provision for bad Book balance Provision for baddebts debts
Accounts receivable:
Shenzhen Yaode
Technology Co. Ltd. and 146468551.71 146468551.71 145562210.29 145562210.29
its subsidiaries
HOHOELECTRICAL&FU
RNITURECO.LIMITED 124921878.75 65316911.35 124378346.69 51863807.49
OCT Group Co. Ltd. and
its subsidiaries and 95069787.49 15682476.73 100590722.52 15162359.88
associates
Chuzhou Hanshang Electric
Appliance Co. Ltd. 84328956.54 909014.49 38536165.52 786137.78
243Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Book balance Provision for bad Book balance Provision for baddebts debts
Anhui Kaikai Shijie E-
commerce Co. Ltd. and its 46725631.12 3055744.43 60994542.80 1879460.35
subsidiaries
Shenzhen Kanghongxing
Intelligent Technology Co. 39230506.73 39222383.06 39226376.64 39214097.96
Ltd.Shenzhen Jielunte
Technology Co. Ltd. and
its subsidiaries and 10934260.72 223058.92 8538236.25 173326.20
associates
Shenzhen Konda E-display
Co. Ltd. and its 4566869.61 414217.51 2038868.80 130671.94
subsidiaries
Subtotal of other related
parties 19774344.27 4702381.95 36068461.04 4978006.25
Total 572020786.94 275994740.15 555933930.56 259750078.15
Financing accounts
receivable/Notes
receivable:
Korea Electric Group Co.Ltd. and its subsidiaries 10000000.00
Chuzhou Hanshang Electric
Appliance Co. Ltd. 10000000.00
Total 20000000.00
Dividends receivable
Wuhan Tianyuan
Environmental Protection 10465200.00
Co. Ltd.Chutian Dragon Co. Ltd. 4240444.62
Shenzhen Jielunte
Technology Co. Ltd. 941482.38
Total 14705644.62 941482.38
Other receivables:
Yantai Kangyue Investment
Co. Ltd. 175910620.67 18682100.00
Dai Rongxing 87692767.03 87692767.03 86150945.74 86150945.74
Shenzhen Kanghongxing
Intelligent Technology Co. 39888921.64 39888921.64 39888921.64 39888921.64
Ltd.OCT Group Co. Ltd. and
its subsidiaries and 30343358.95 20542421.70 31185288.31 20608710.48
associates
244Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Book balance Provision for bad Provision for baddebts Book balance debts
Dongguan Guankang
Yuhong Investment Co. 22000000.00 660000.00 22000000.00 660000.00
Ltd.HOHOELECTRICAL&FU
RNITURECO.LIMITED 2500687.22 1622445.87 2485213.19 1612406.32
Hu Zehong 977294.24 94287.93 1395042.29 135057.89
Jiangxi Meiji Enterprise
Co. Ltd. 93512640.31 93512640.31
Huanjia Group Co. Ltd. 25083675.53 24582002.02
Subtotal of other related
parties 225666.72 6726.05 145049.83 2993.94
Total 359539316.47 169189670.22 301846776.84 267153678.34
Prepayments:
Puchuang Jiakang
Technology Co Ltd. 10596705.00
OCT Group Co. Ltd. and
its subsidiaries and 75511.22 238185.12
associates
Shenzhen Jielunte
Technology Co. Ltd. and 7764.63
its subsidiaries
Subtotal of other related
parties 187017.99
Total 10859234.21 245949.75
Other current assets:
Chuzhou Kangxin Health
Industry Development Co. 412246840.52 396256021.05
Ltd.Yantai Kangyun Industrial
Development Co. Ltd. 265592911.14 256452466.70
Chongqing Lanlv Moma
Real Estate Development 243451559.91 235830613.25
Co. Ltd.Sichuan Hongxinchen Real
Estate Development Co. 236192420.65 228799064.74
Ltd.Shandong Econ
Technology Co. Ltd. and 234271017.20 233116949.03
its subsidiaries
245Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance Opening balance
Related party
Book balance Provision for baddebts Book balance
Provision for bad
debts
Dongguan Guankang
Yuhong Investment Co. 223229933.65 224838028.99
Ltd.Sichuan Chengrui Real
Estate Co. Ltd. 174432231.04 168476988.84
Yantai Kangyue Investment
Co. Ltd. 170712417.56 18682100.00
Total 1789416914.11 1914482550.16 18682100.00
（2） Payables
Related party Book balance at the end of Book balance at thethe period beginning of the period
Accounts payable:
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries and
associates 31049279.87 33987442.17
OCT Group Co. Ltd. and its subsidiaries and associates 27725955.80 28693864.79
Chuzhou Hanshang Electric Appliance Co. Ltd. 24759143.98 43592692.34
Shenzhen Konda E-display Co. Ltd. and its subsidiaries 14723403.30 10343033.76
HOHOELECTRICAL&FURNITURECO.LIMITED 6635707.92 10195877.56
Korea Electric Group Co. Ltd. and its subsidiaries 6562139.19 4374416.65
Anhui Kaikai Shijie E-commerce Co. Ltd. and its subsidiaries 4326148.17 4614860.81
Panxu Intelligence Co. Ltd. and its subsidiaries 2092771.45 3558734.12
Dongguan Konka Smart Electronic Technology Co. Ltd. 485152.86 288114.11
Subtotal of other related parties 51590105.78 62595100.98
Total 169949808.32 202244137.29
Notes payable:
Dongguan Kangjia New Materials Technology Co. Ltd. 5208249.77 4352821.66
Korea Electric Group Co. Ltd. and its subsidiaries 2948260.34 4709353.26
Shenzhen Jielunte Technology Co. Ltd. and its subsidiaries 2687124.58 916829.48
Panxu Intelligence Co. Ltd. and its subsidiaries 1962738.39
Total 10843634.69 11941742.79
Contractual liabilities/other current liabilities:
246Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Related party Book balance at the end of Book balance at thethe period beginning of the period
OCT Group Co. Ltd. and its subsidiaries and associates 42855945.24 43675417.58
Shenzhen Konda E-display Co. Ltd. and its subsidiaries 8184562.22 28903907.67
Shandong Kangfei Intelligent Electrical Appliances Co. Ltd. 187981.82 246708.55
Shenzhen Aimijiakang Technology Co. Ltd. 2191.50 1030654.81
Subtotal of other related parties 5086921.84 1412447.04
Total 56317602.62 75269135.65
Other payables:
Chuzhou Hanshang Electric Appliance Co. Ltd. 206345489.22 195705860.89
Shandong Econ Technology Co. Ltd. and its subsidiaries 19369484.27 42146282.34
OCT Group Co. Ltd. and its subsidiaries and associates 15996696.01 23291255.06
Central Enterprises in poverty-stricken areas (Jiangxi) Industrial
Investment Funds Partnership (L.P.) 12000000.00 9600000.00
Beijing Xuri Shengxing Technology Co. Ltd. 2605409.66 2536047.85
Konka Ventures Development (Shenzhen) Co. Ltd. 2486649.34 2523500.05
Chongqing Kangjian Optoelectronics Technology Co. Ltd. 500000.00
Dongguan Kangjia New Materials Technology Co. Ltd. 410526.24 410526.24
E3info (Hainan) Technology Co. Ltd. and its subsidiaries and
associated enterprises 10328.48 63099.88
Subtotal of other related parties 18282012.76 11052687.80
Total 278006595.98 287329260.11
4. Related party commitments
The Group did not have any related party commitments.
5. Others
The Group did not have any related party matters.XIV. Commitments and Contingencies
1. Significant commitments
（1）Capital commitments
247Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Contract signed but hasn't been recognised in
financial statements
Commitment on construction and purchase of long-
lived assets 32718400.00
Large amount contract 248842082.25 295615545.67
Foreign investment commitments
Total 281560482.25 295615545.67
（2）Other commitments
As of 30 June 2024 there were no other significant commitments for the Company to disclose.
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
and Jiangxi High Transparent Substrate (formerly known as Nano-Crystallised Glass) 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 Science and Technology 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 Science and Technology 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 31 October 2019 the Higher People's Court of Jiangxi Province ruled in the first instance that Jiangxi
Xinxin Jian'an Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi Technology should repay to
China Great Wall AMC Jiangxi Branch the loan principal of RMB300 million and the interest and liquidated
damage arising from it within 10 days from the effective date of the judgment and Jiangxi Konka New Material
Zhu Xinming Leng Sumin Nano-Crystallised Glass Xinfeng Microcrystalline should bear joint and several
liability for all debts recognised in this judgment. The defendants appealed against the verdict of the first
instance and the Supreme People's Court accepted the appeal. On 24 March 2021 the Supreme People's Court
made the following ruling: I. Civil Judgment (2018) G.M.CH. No. 110 made by the Higher People's Court of
Jiangxi Province is abrogated; II. This case is remanded to the Higher People's Court of Jiangxi Province 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 actual controller of Jiangxi Konka New Materials Zhu Xinming and his spouse Leng Sumin Jiangxi
248Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Xinzixin Real Estate Co. Ltd. Zhu Zilong Zhu Qingming and Zeng Xiaohong as guarantors provided a total
of approximately RMB143 million of real estate mortgage guarantee to Great Wall AMC for the above loans.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 nanometre microcrystalline that all contingent debts incurred by Jiangxi Konka by the
original shareholders of Konka new material 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 Konka group and went through the mortgage registration procedures. As of the date of
this report the case is still on trial and the above commercial acceptance bill has not been honoured.
(2) As for the dispute of the Company with Luo Zaotong Luo Jingxia Luo Zongyin Luo Zongwu and
Shenzhen Yaode Technology Co. Ltd. on share repurchase since the other party did not actively perform the
repurchase obligation the Company filed a lawsuit with the People's Court of Nanshan District Shenzhen. The
amount of the subject matter involved in the lawsuit is RMB249 million. On 22 November 2021 the Company
applied to the People's Court of Nanshan District Shenzhen for property preservation. On 11 January 2023 the
People's Court of Nanshan District Shenzhen rendered a verdict of the first instance ruling that Luo Zaotong
Luo Jingxia Luo Zongyin and Luo Zongwu pay the repurchase amount of RMB172 million plus the sum of
interest calculated at 12% per annum from 6 April 2017 to the date of payment of the equity repurchase by the
defendant Luo Zaotong Luo Jingxia Luo Zongyin and Luo Zongwu. As of the date of issuance of this report
the case was executed in progress.
(3) As the acceptor failed to pay the commercial acceptance bills held by the Company upon maturity the
Company as the plaintiff requested debtors Hongtu Sanpower Technology Co. Ltd. Jiangsu Hongtu High
Technology Co. Ltd. Sanpower Group Co. Ltd. Nanjing Jiongjiong Electronic Technology Co. Ltd. and
Shenzhen Qianhai Benniu Agricultural Technology Co. Ltd. to RMB200 million bear joint and several liability
for the bills and the overdue interest. In July 2019 the company filed a lawsuit with the court and the court has
preserved the defendant's corresponding property. As of the date of issuance of this report the case was closed.
(4) The amount of the subject matter involved in the dispute between the Company and Wuhan Jialian
Agricultural Technology Development Co. Ltd. Peng Chaojun He Jiaguo He Jiayi Liang Xiangzhou Xu
Yizheng He Fan Pang Huasheng Song Liangming and Liang Xiangmei over the right of recourse for bills is
RMB200 million and the corresponding interest. In September 2020 the Company filed a lawsuit with the
Wuhan Intermediate People's Court and the court ordered the defendant to pay Konka Group the principal
amount of the note of RMB200 million and relevant overdue interest. The defendant applied for retrial during
the execution of the case. As of the date of issuance of this report the case was in retrial.
(5) The amount of the subject matter involved in the dispute between the Company's subsidiary Konka
Unifortune and Shenzhen Yaode Technology Co. Ltd. Dongsheng Xinluo Technology (Shenzhen) Co. Ltd.Shenzhen Hongyao Dingsheng Investment Management Co. Ltd. Shenzhen Xiangrui Yingtong Investment
Management Co. Ltd. Luo Jingxia Luo Zongwu Luo Zongyin Luo Zaotong and Luo Saiyin over contracts is
RMB155 million. On 8 September 2022 the court issued a judgment in favour of the Company's subsidiary. As
of the date of issuance of this report the case was executed in progress.
(6) As the acceptor failed to pay the commercial bills held by the Company upon maturity the Company as the
plaintiff filed a lawsuit with the court on the matured bills amounting to RMB300 million requesting the bill
acceptor Shanghai Huaxin and prior parties involved to bear joint and several liability for the bills and
249Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
liquidated damage and interest. As of the date of issuance of this report the case was executed in progress.
(7) The amount of the subject matter involved in the dispute between the Company's subsidiaries Frestec
Refrigeration Anhui Konka Konka Material and Anhui Tongchuang (plaintiff) and Shantou Meisen
Technology Co. Ltd. Shenzhen Meisenyuan Plastic Electronics Co. Ltd. Lin Yuanqin Huang Ruirong
Jiangsu Huadong Hardware Zone Co. Ltd. Chuangfu Commerce & Trade Plaza Real Estate Development
(Huizhou) Co. Ltd. and Puning Junlong Trade Co. Ltd. (defendants) over contracts is RMB380 million. As of
the date of issuance of this report the portion of the case related to Xinfei and Meisen was in trial while the
rest case was executed in progress.
(8) The amount of the subject matter involved in the dispute between the Company's subsidiary Dongguan
Konka (plaintiff) and Dongguan Gaoneng Polymer Materials Co. Ltd. Wang Dong Shenzhen Xinlian Xingyao
Trading Co. Ltd. Shenzhen Jinchuan Qianchao Network Technology Co. Ltd. Puning Junlong Trading Co.Ltd. and Huang Zhihao (defendants) over sales and purchase contracts is RMB90 million. In December 2020
the Company filed a lawsuit with the court and obtained a judgment in its favour in June 2023. As of the date of
issuance of this report the case was executed in progress.
(9) As the acceptor failed to pay the commercial bills held by the Company upon maturity the Company as the
plaintiff filed a lawsuit with the court on the matured bills amounting to RMB78 million requesting the court
to order Hefei Huajun Trading Co. Ltd. and Wuhan Jialian Agricultural Technology Development Co. Ltd. to
pay the Company the bills and the interest for default and applied for property preservation. As of the date of
issuance of this report the case was executed in progress.
(10) The amount of the subject matter involved in the dispute between the Company's subsidiary Konka
Electronic Materials (formerly known as Konka Factoring) (the plaintiff) and Tahoe Group Co. Ltd. Fuzhou
Taijia Enterprise Co. Ltd. and Xiamen Lianchuang Micro-electronics Co. Ltd. (the defendants) over the right
of recourse for bills is RMB50 million and the corresponding interest. On 1 September 1 2021 the Intermediate
People's Court of Xiamen Municipality Fujian Province ordered the defendants to pay the plaintiff e-
commercial acceptance bills of RMB50 million and the corresponding interest. As of the date of issuance of this
report the case was executed in progress.
(11) The amount of the subject matter involved in the dispute between the Company (plaintiff) and China
Energy Electric Fuel Co. Ltd. China Energy (Shanghai) Enterprise Co. Ltd. Shanghai Nengping Enterprise
Co. Ltd. and Shenzhen Qianhai Baoying Commercial Factoring Co. Ltd. (defendants) over the right of
recourse for bills is RMB50 million and the corresponding interest. In September 2018 the company filed a
lawsuit with the Shenzhen Intermediate People's Court and the court has preserved the defendant's
corresponding property. As of the date of issuance of this report the case was executed in progress.
(12) The amount of the subject matter involved in the dispute between the Company's subsidiary Anhui Konka
(plaintiff) and Makena Electronic (Hong Kong) (defendant) over the sales and purchase contract is
RMB5440200. On 7 December 2021 Anhui Konka filed arbitration with the Shenzhen Court of International
Arbitration. On 14 October 2022 the compulsory enforcement was filed. As of the date of issuance of this
report the case was executed in progress.
(13) The amount of the subject matter involved in the dispute between the Company's subsidiary Anhui Konka
(plaintiff) and Shanghai Likai Logistics Co. Ltd. Shenzhen Branch and Shanghai Likai Logistics Co. Ltd.(defendants) over freight forwarding contracts in maritime and open sea waters is RMB38 million. On 26 April
250Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
2021 Konka applied to Shanghai Maritime Court for compulsory execution. On 7 June 2021 the court accepted
the case. As of the date of issuance of this report the case was executed in progress.
(14) The amount of the subject matter involved in the dispute between the Company's subsidiary Pengrun
Technology (plaintiff) and Guangan Ou Qi Shi Electronic Technology Co. Ltd. Guan Hongshao Huaying
Gaokede Electronic Technology Co. Ltd. Huaying Gaokelong Electronic Technology Co. Ltd. Guizhou
Jiaguida Technology Co. Ltd. Sichuan Hongrongyuan Real Estate Co. Ltd. Du Xinyu Linbolong and Wang
Shisheng (defendants) over trust contract is RMB167 million. The case has been applied for property
preservation measures. As of the date of issuance of this report the case was executed in progress.
(15) The amount of the subject matter involved in the dispute between the Company (plaintiff) and Yantai
Kangyue Investment Co. Ltd. (defendant) over borrowing contract is RMB160 million. The Company has
applied to the Shenzhen Intermediate People's Court for property preservation. As of the date of issuance of this
report the case was executed in progress.
(16) The amount of the subject matter involved in the dispute between the Company's subsidiary Jiaxin
Technology Co. Limited (plaintiff) and Tripod Electronics Technology (HongKong) Limited Chen Wenhuan
and Chen Baohong (defendants) over a sales and purchase contract of international goods is RMB51 million. As
of the date of issuance of this report the case was under trial.
(17) In the case of contract dispute between the Company (plaintiff) Zhu Xinming Leng Sumin Gongqingcheng
BRIC Investment Management Partnership (limited partnership) and Gongqingcheng Xinrui Investment
Management Partnership (Limited partnership) (defendant) due to the failure of the other party to pay
performance compensation as agreed the Company filed an arbitration with the Shenzhen International
Arbitration Court in June 2023. The amount of the subject matter involved in the lawsuit is RMB939044100. As
of the date of issuance of this report the case was under trial.
(18) In the case of contract dispute between the Company's subsidiaries Konka Lifeng (Plaintiff) and Shenzhen
Junxing Communication Technology Co. Ltd. Gu Mei Electronics (Hong Kong) Technology Co. Ltd.Shenzhen Hongxing Fengda Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd.Zeng Jiankai Zhang Zhenyu Haiying Technology Group (Hong Kong) Co. Ltd. Zhang Lixia Anhui Baolin
Industry Co. Ltd. Zeng Qingpeng Zhong Yuhua (Defendant) the subject matter of the lawsuit is
RMB262711100. As of the date of issue of this report the case was under trial.
(19) Shenzhen Nianhua (plaintiff) a subsidiary of the Company filed an arbitration with the Shenzhen
International Arbitration Court in March 2023 in a share repurchase dispute with Fang Xianglong and Jiang Yan
(defendant) due to the other party's failure to repurchase the share and pay the repurchase price as agreed. The
subject matter of the lawsuit is RMB151605500. As of the date of issue of this report the case was under
implementation.
(20) The amount of the subject matter involved in the dispute between the Company's subsidiary Sichuan
Konka (plaintiff) and Shenzhen Junxing Communication Technology Co. Ltd. Shenzhen Hongxing Fengda
Industrial Development Co. Ltd. Shenzhen Junxing Junye Electronics Co. Ltd. Liuyang Huichuan Heyuan
Villa Co. Ltd. Zeng Jiankai Zhong Yuhua (defendant) over a sales and purchase contract is RMB51.72 million.As of the date of issuance of this report the case was under implementation.
(21) The Company (plaintiff) filed a lawsuit with the Nanshan District People's Court of Shenzhen in May 2023
251Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
concerning the equity transfer contract dispute with Longrui Haoteng Technology Development Co. Ltd.Beijing Beida Blue Bird Security System Engineering Technology Co. Ltd. and Beijing Jingrui Haoteng
Technology Development Co. Ltd. (Defendant) due to the failure of the other party to pay the balance of the
equity transfer as agreed. The subject matter involved amounted to RMB45.4076 million. As of the date of issue
of this report the case was under implementation.
(22) The amount of the subject matter involved in the dispute between Shenzhen Oriental Venture Capital
Investment Co. Ltd. (plaintiff) and the Company (defendant) over a contract is RMB750 million. As of the date
of issuance of this report the case was under trial.
(23) 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 (defendants) over a sales and purchase contract
is RMB122834600. As of the date of issuance of this report the case was under trial.XV. Subsequent Events after the Balance Sheet Date
1. Important non-adjusting matters
The Group had no significant non-adjusting matters to disclose as of the date of this financial report.
2. Sales return
As of the date of this financial report the Group had no material sales returns.
3. Notes to other subsequent events after the balance sheet date
Except for the above disclosure of matters after the balance sheet date the Group did not have any other
significant events after the balance sheet date.XVI. Other Key Matters
As Konka Huanjia a subsidiary of the Company was unable to repay its debts as they matured and its assets
were insufficient to repay all of its debts the Company filed an application with the People's Court of Ganjizi
District Dalian City Liaoning Province (the "Dalian Ganjingzi District Court") for the bankruptcy and
liquidation of Konka Huanjia on 28 February 2024. On 29 February 2024 the Dalian Ganjingzi District Court
decided in accordance with the law to accept the Company's application. On 14 March 2024 the Dalian
Ganjingzi District Court appointed Shanghai SGLA (Dalian) Law Firm to act as the administrator (hereinafter
referred to as the "Administrator") of the bankruptcy and liquidation case of Kangjia Huanjia. On 15 March
2024 the Administrator took over the relevant information and physical objects of Konka Huanjia. The
Company no longer exercises control over Konka Huanjia since 15 March 2024.Apart from the above matters the Group had no other significant transactions and events that had an impact on
investors' decision-making that needed to be disclosed.XVII. Notes to the Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
（1） Accounts receivable listed by aging portfolio
252Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Aging Book balance at the end of the period Book balance at the beginning of theperiod
Within one year (inclusive) 1576900729.92 1206382965.89
One to two years 1224353927.73 1471518725.52
Two to three years 280813815.55 116480162.93
Three to four years 61088778.22 58805217.49
Four to five years 13205337.48 122821401.69
Over five years 825400530.17 806589292.93
Total 3981763119.07 3782597766.45
（2） Accounts receivable listed by withdrawal methods for bad debts
Closing balance
Book balance Provision for bad debts
Category
Amount Proportion
Provision Carrying value
(%) Amount percentage(%)
Accounts receivable of
expected credit losses 752374855.73 18.90 708515174.55 94.17 43859681.18
withdrawn individually
Accounts receivable of
expected credit losses
withdrawn by portfolio
Of which: Aging portfolio 322883164.84 8.10 166335392.46 51.52 156547772.38
Grouping of related parties 2906505098.50 73.00 2906505098.50
Subtotal of portfolio 3229388263.34 81.10 166335392.46 5.15 3063052870.88
Total 3981763119.07 100.00 874850567.01 21.97 3106912552.06
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Proportion Provision Carrying valueAmount (%) Amount percentage(%)
Accounts receivable of 752763517.97 19.90 708873222.27 94.17 43890295.70
253Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Amount Proportion
Provision Carrying value
(%) Amount percentage(%)
expected credit losses
withdrawn individually
Accounts receivable of
expected credit losses
withdrawn by portfolio
Of which: Aging portfolio 355972586.88 9.41 166216118.67 46.69 189756468.21
Grouping of related parties 2673861661.60 70.69 2673861661.60
Subtotal of portfolio 3029834248.48 80.10 166216118.67 5.49 2863618129.81
Total 3782597766.45 100.00 875089340.94 23.13 2907508425.51
1） Provision set aside for bad debts of accounts receivable by single item
Closing balance
Name Provision
Book balance Provision for bad debts percentage Reasons for the
(%) provision
Shanghai Huaxin International Group 298855950.30 292878831.29 98.00 Expected to beCo. Ltd. difficult to recover
Hongtu Sanbao High-tech Technology
Co. Ltd. 200000000.00 180000000.00 90.00
Expected to be
difficult to recover
Zhongfu Tiangong Construction Group
Co. Ltd. 71289096.65 53466822.49 75.00
Expected to be
difficult to recover
CCCC First Harbor Engineering
Company Ltd. 55438105.00 55438105.00 100.00
Not expected to be
recoverable
China Energy Power Fuel Co. Ltd. 49993564.16 49993564.16 100.00 Not expected to berecoverable
Shenzhen Kanghongxing Intelligent
Technology Co. Ltd. 36900685.94 36900685.94 100.00
Not expected to be
recoverable
Others 39897453.68 39837165.67 99.85 Expected to bedifficult to recover
Total 752374855.73 708515174.55 94.17
2） Provision for bad debts for accounts receivable made as per portfolio
254Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
* In the portfolio accounts receivable of provision for expected credit loss made by aging
Closing balance
Aging
Book balance Provision for bad Provision percentagedebts (%)
Within one year 112395876.40 2292875.89 2.04
One to two years 5187.00 519.74 10.02
Two to three years 59706366.00 13547374.44 22.69
Three to four years 800435.79 519322.74 64.88
Four to five years 171776.01 171776.01 100.00
Over five years 149803523.64 149803523.64 100.00
Total 322883164.84 166335392.46 51.52
* In the portfolio accounts receivable of provision for expected credit loss made by other methods
Closing balance
Aging
Book balance Provision for bad Provision percentagedebts (%)
Grouping of related parties 2906505098.50
Total 2906505098.50
（3） Provision for bad debts of accounts receivable set aside recovered or reclassified in the
current period
Change in the current period
Category Opening balance
Provision Recovery orreclassification
Provision for bad debts of accounts
receivable 875089340.94 301481.02 540254.95
Total 875089340.94 301481.02 540254.95
(Continued)
Change in the current period
Category Closing balance
Charge-off or write-off Decrease for otherreasons
255Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Change in the current period
Category Decrease for other Closing balanceCharge-off or write-off reasons
Provision for bad debts of accounts
receivable 874850567.01
Total 874850567.01
There were no provisions for bad debts with significant amounts to be recovered or classified in the Reporting
Period.
（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 the closing balance categorised by debtors
The total amount of accounts receivable with top five closing balance categorised by debtors in the current
period was RMB3055758056.02 accounting for 76.74% of the total closing balance of accounts receivable.The total closing balance of provision for bad debts correspondingly set aside was RMB472878831.29.
2. Other accounts receivable
Item Closing balance Opening balance
Interest receivable 7098359.12 6325400.49
Dividends receivable 410736627.52 395209709.13
Other receivables 7584889286.80 7560988861.81
Total 8002724273.44 7962523971.43
2.1 Interest receivable
Item Closing balance Opening balance
Interest on term deposits 7098359.12 6325400.49
Total 7098359.12 6325400.49
2.2 Dividends receivable
Item Closing balance Opening balance
Hong Kong Konka 116030982.90 115209709.13
256Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Closing balance Opening balance
Suining Konka Industrial Park 280000000.00 280000000.00
Chutian Dragon Co. Ltd. 4240444.62
Wuhan Tianyuan Environmental Protection Co.Ltd. 10465200.00
Total 410736627.52 395209709.13
2.3 Other receivables
（1） Classified by account nature
Nature of fund Book balance at the end of the Book balance at the beginning of theperiod period
Intercourse funds among subsidiaries 7397162611.22 9069786800.21
Energy-saving subsidies receivable 141549150.00 141549150.00
Intercourse funds with other related parties 2024073267.21 235267733.09
Deposit security deposit deposit 11713898.17 12721943.88
Others 20112856.02 99060310.98
Total 9594611782.62 9558385938.16
（2） Other receivables listed by aging
Aging Book balance at the end of the Book balance at the beginning of theperiod period
Within one year (inclusive) 2451928731.79 5210348063.16
One to two years 2602382126.67 2145922239.93
Two to three years 2236964599.17 198105811.44
Three to four years 425321765.69 439082181.54
Four to five years 322010578.45 1004762554.22
Over five years 1556003980.85 560165087.87
Total 9594611782.62 9558385938.16
（3） Classified presentation of other receivables by provisioning methods of bad debts
257Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Closing balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Other receivables of
expected credit
losses set aside by 2115468102.06 22.05 1958223301.39 92.57 157244800.67
single item
Other receivables of
provision for bad
debts set aside by
credit risk
characteristic
portfolio:
Aging portfolio 69725271.20 0.73 47479729.45 68.10 22245541.75
Low-risk portfolio 12255798.14 0.13 4019464.98 32.80 8236333.16
Grouping of related
parties 7397162611.22 77.09 7397162611.22
Subtotal of portfolio 7479143680.56 77.95 51499194.43 0.69 7427644486.13
Total 9594611782.62 100.00 2009722495.82 20.95 7584889286.80
(Continued)
Opening balance
Book balance Provision for bad debts
Category
Provision Carrying value
Amount Proportion(%) Amount percentage(%)
Other receivables
of expected credit
losses set aside by 2110298248.95 22.08 1958251651.39 92.80 152046597.56
single item
Other receivables
of provision for
bad debts set
aside by credit
risk characteristic
portfolio:
Aging portfolio 84338231.39 0.88 32163233.75 38.14 52174997.64
Low-risk 16543239.09 0.17 6982191.21 42.21 9561047.88
258Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Opening balance
Book balance Provision for bad debts
Category
Proportion Provision Carrying valueAmount (%) Amount percentage(%)
portfolio
Grouping of
related parties 7347206218.73 76.87 7347206218.73
Subtotal of
portfolio 7448087689.21 77.92 39145424.96 0.53 7408942264.25
Total 9558385938.16 100.00 1997397076.35 20.90 7560988861.81
1） 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 1 January 2024 841697.01 38303727.95 1958251651.39 1997397076.35
Balance as of 1 January 2024 in
the current year -294559.25 294559.25
-- Transferred to Phase II -294559.25 294559.25
-- Transferred to Phase III
-- Reclassified under Phase II
-- Reclassified under Phase I
Provision in the current period 12698964.19 12698964.19
Recovery in the current period 345203.80 28350.00 373553.80
Charge-off in the current period
Write-off in the current period
Other changes 9.08 9.08
Balance as at 30 June 2024 201933.96 51297260.47 1958223301.39 2009722495.82
259Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Note: 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 for bad debts of other receivables set aside recovered or reclassified in the current
period
The amount of provision for bad debts in the current period was RMB12325410.39.
（5） Other receivables actually written off in the current period
There were no other receivables actually written off in the current period.
（6） Other receivables with top five year-end balances categorised by debtors
The total amount of other receivables with top five closing balance categorised by debtors in the current period
was RMB6558102802.54 accounting for 68.35% of the total closing balance of other receivables. The total
closing balance of provision for bad debts correspondingly set aside was RMB1744736434.49.
3. Long-term equity investment
Closing balance Opening balance
Item
Book balance Provision forimpairment Carrying value Book balance
Provision for
impairment Carrying value
Investment
in 7068025423.9 6378345423.9 7156825933.9 6375345933.9
subsidiarie 8 689680000.00 8 8 781480000.00 8
s
Investment
in
associated 2347583606.0 393554900.04 1954028706.0 2279596484.2 1977841584.1enterprises 4 0 0 301754900.04 6
and joint
ventures
260Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Total 9415609030.0 1083234900.0 8332374129.9 9436422418.1 1083234900.0 8353187518.12 4 8 8 4 4
（1） Investment in subsidiaries
Impair
ment Closing
Investee Opening balance Increase in the Decrease in the
provisi balance of the
current period current period Closing balance on setaside in provision for
the impairment
current
period
Konka
Ventures 2550000.00 2550000.00
Anhui
Konka 122780937.98 122780937.98
Konka
Electron
ic 300000000.00 300000000.00
Material
s
Konka
Unifortu 15300000.00 15300000.00
ne
Wankaid
a 10000000.00 10000000.00
Donggu
an 274783988.91 274783988.91
Konka
Konka
Europe 3637470.00 3637470.00
Telecom
municati
on 360000000.00 360000000.00
Technol
ogy
Mobile
Intercon 100000000.00 100000000.00
nection
Anhui
Tongchu 779702612.22 779702612.22
ang
Kangjiat 30749800.00 30749800.00
261Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Impair
ment Closing
Investee Opening balance Increase in the Decrease in the
provisi balance of the
current period current period Closing balance on setaside in provision for
the impairment
current
period
ong
Pengrun
Technol 25500000.00 25500000.00
ogy
Beijing
Konka
Electron 200000000.00 200000000.00
ic
Konka
Circuit 437050000.00 13000000.00 450050000.00
Hong
Kong 781828.61 781828.61
Konka
Konka
Investm 500000000.00 500000000.00
ent
Electron
ics
Technol 1000000000.00 1000000000.00
ogy
Shangha
i Konka 40000000.00 40000000.00
Jiangxi
Konka 689680000.00
Shenzhe
n 30000000.00 30000000.00
Nianhua
Shenzhe
n
KONSE 100000000.00 100000000.00
MI
Konka
Eco-
Develop 50000.00 50000.00
ment
262Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Impair
ment Closing
Investee Opening balance Increase in the Decrease in the
provisi
current period current period Closing balance on set
balance of the
aside in provision for
the impairment
current
period
Suining
Konka
Industria 200000000.00 200000000.00
l Park
Konka
Ronghe 5100000.00 5100000.00
Suining
Electron
ic
Technol 200000000.00 200000000.00
ogical
Innovati
on
Shenzhe
n
Chuangz
hi
Electrica 10000000.00 10000000.00
l
Applian
ces
Chongqi
ng
Konka
Optoelec 933333333.33 933333333.33
tronic
Technol
ogy
Kowin
Memory
(Shenzh 192520000.00 192520000.00
en)
Ningbo
Kanghr
Electrica
l 90000000.00 90000000.00
Applian
ce
Konka
Intellige 510.00 510.00
nt
Manufac
263Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Impair
ment Closing
Investee Opening balance Increase in the Decrease in the
provisi balance of the
current period current period Closing balance on setaside in provision for
the impairment
current
period
turing
Suining
Jiarun 10000000.00 10000000.00
Property
Yibin
Kangrun 67000000.00 67000000.00
Hainan
Konka
Material 9205452.93 9205452.93
Technol
ogy
Konka
Cross-
border 50000000.00 50000000.00
(Hebei)
Konka
Huazhon 30000000.00 30000000.00
g
Guizhou
Kanggui
Material 28000000.00 28000000.00
Technol
ogy
Nantong
Kanghai 15300000.00 15300000.00
Jiangxi
Konka
High- 50000000.00 50000000.00
tech
Park
Shangra
o Konka
Electron
ic
Technol 30000000.00 30000000.00
ogy
Innovati
on
264Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Impair
ment
provisi Closing
Investee Opening balance Increase in the Decrease in thecurrent period current period Closing balance on set
balance of the
aside in provision for
the impairment
current
period
Xi'an
Kangho
ng
Technol 12000000.00 12000000.00
ogy
Industry
Xi'an
Konka
Intellige
nt 50000000.00 50000000.00
Technol
ogy
Songyan
g Konka
Intellige 30000000.00 30000000.00
nt
Konka
North 30000000.00 30000000.00
China
Total 6375345933.98 13000000.00 10000510.00 6378345423.98 689680000.00
（2） Investment in associated enterprises and joint ventures
Changes in the current period
Investee Balance as at the end Profit or loss of Changes inof last period Increase in Decrease in investment other
the investment the investment recognised by the comprehensive
equity method income
Anhui Kaikai Shijie E-commerce
Co. Ltd. 17493847.46 -5828645.96
Kunshan Kangsheng Investment
Development Co. Ltd. 112914774.51 -3336356.30
Shanxi Silk Road Cloud Intelligent
Tech Co. Ltd. 5187588.48 -669600.90
Shenzhen Kanghongxing
Intelligent Technology Co. Ltd.Shenzhen Zhongkang Beidou
265Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Balance as at the end Profit or loss of Changes inof last period Increase in Decrease in investment other
the investment the investment recognised by the comprehensive
equity method income
Technology Co. Ltd.Shenzhen Kangjia Jiapin Intelligent
Electrical Apparatus Technology 7090590.47 -480528.54
Co. Ltd.Shenzhen Yaode Technology Co.Ltd.Wuhan Tianyuan Environmental
Protection Co. Ltd. 512729351.11 17245673.07
Shenzhen KONKA E-display Co.Ltd. 15355334.74 1799918.18
Chuzhou Konka Technology
Industry Development Co. Ltd.Chuzhou Kangjin Health Industrial
Development Co. Ltd. 136166304.62 -3469664.26
Nantong Kangjian Technology
Industrial Park Operations and 5625680.96
Management Co. Ltd.Shenzhen Kangyue Enterprise Co.Ltd.Dongguan Guankang Yuhong
Investment Co. Ltd.Chongqing Yuanlv Benpao Real
Estate Co. Ltd.Chuzhou Kangxin Health Industry
Development Co. Ltd. 8277052.29 -1100714.21
E3info (Hainan) Technology Co.Ltd. 8574609.73
Shenzhen Kangpeng Digital
Technology Co. Ltd. 1770021.01 -345320.82
Yantai Kangyun Industrial
Development Co. Ltd.Shandong Econ Technology Co.Ltd. 928660408.13
266Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period
Investee Balance as at the end Profit or loss of Changes inof last period Increase in Decrease in investment other
the investment the investment recognised by the comprehensive
equity method income
Dongguan Kangjia New Materials
Technology Co. Ltd. 3856971.32 2886.15
Chongqing E2info Technology
Co. Ltd. 185922140.28 6320936.88
Sichuan Chengrui Real Estate Co.Ltd.Wuhan Kangtang Information
Technology Co. Ltd. 25757222.60 -848227.42
Sichuan Hongxinchen Real Estate
Development Co. Ltd. 2459686.45
Konka Huanjia Environmental
Technology Co. Ltd.Total 1977841584.16 9290355.87
(Continued)
Changes in the current period Closing balance
Cash dividends Provision Ending balance ofInvestee Changes in other or profits set aside depreciation
equities declared to be for Others (Carrying value) reserve
distributed impairment
Anhui Kaikai Shijie E-
commerce Co. Ltd. 11665201.50
Kunshan Kangsheng
Investment Development Co. 7350000.00 102228418.21
Ltd.Shanxi Silk Road Cloud
Intelligent Tech Co. Ltd. 4517987.58
Shenzhen Kanghongxing
Intelligent Technology Co. 5158909.06
Ltd.Shenzhen Zhongkang Beidou
Technology Co. Ltd.Shenzhen Kangjia Jiapin
Intelligent Electrical
Apparatus Technology Co. 6610061.93
Ltd.
267Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period Closing balance
Cash dividends Provision Ending balance ofInvestee Changes in other or profits set aside depreciation
equities declared to be for Others (Carrying value) reserve
distributed impairment
Shenzhen Yaode Technology
Co. Ltd. 214559469.35
Wuhan Tianyuan
Environmental Protection Co. -11288034.03 10465200.00 508221790.15
Ltd.Shenzhen KONKA E-display
Co. Ltd. 17155252.92
Chuzhou Konka Technology
Industry Development Co.Ltd.Chuzhou Kangjin Health
Industrial Development Co. 132696640.36
Ltd.Nantong Kangjian Technology
Industrial Park Operations and 5625680.96
Management Co. Ltd.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. 7176338.08
Ltd.E3info (Hainan) Technology
Co. Ltd. 4000000.00 4574609.73
Shenzhen Kangpeng Digital
Technology Co. Ltd. 1424700.19
Yantai Kangyun Industrial
Development Co. Ltd.Shandong Econ Technology
Co. Ltd. 928660408.13 81806510.02
Dongguan Kangjia New 3859857.47
Materials Technology Co.
268Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Changes in the current period Closing balance
Ending balance of
Investee Cash dividends ProvisionChanges in other or profits set aside depreciation
equities declared to be for Others (Carrying value) reserve
distributed impairment
Ltd.Chongqing E2info Technology
Co. Ltd. 192243077.16
Sichuan Chengrui Real Estate
Co. Ltd.Wuhan Kangtang Information
Technology Co. Ltd. 24908995.18
Sichuan Hongxinchen Real
Estate Development Co. Ltd. 2459686.45
Konka Huanjia Environmental
Technology Co. Ltd. 91800000.00
Total -11288034.03 21815200.00 1954028706.00 393554900.04
4. Operating revenue and cost of sales
（1） Operating income and operating costs
Amount incurred in the current period Amount incurred last period
Item
Income Cost Income Cost
Principal
business 840712402.51 880759443.78 588736212.10 651086329.20
Other business 74623388.01 29020937.18 82606260.87 31456950.98
Total 915335790.52 909780380.96 671342472.97 682543280.18
（2） Information in relation to the trade price apportioned to the residual contract performance
obligation
The amount of revenue corresponding to performance obligations that have been contracted but have not yet
been fulfilled or completed at the end of the period is RMB2522999.28 of which RMB2522999.28 is
expected to be recognised as revenue in 2024.
5. Investment income
Item Amount incurred in the Amount incurred lastcurrent period period
269Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount incurred in the Amount incurred lastcurrent period period
Returns on long-term equity investments calculated by the equity
method 9290355.87 -17573675.23
Return on investment arising from the disposal of long-term equity
investments 16490883.27 182495426.59
Conversion of long-term equity investments accounted for by the
equity method to financial assets 574780174.75
Investment income from disposal of financial assets at fair value
through profit or loss 11456.91 -3794910.98
Interest income from debt investments during the holding period 2140000.00 3622191.78
Return on investment in the financial assets held for trading during
the holding period 4240444.62 9383976.00
Others -152872.14 500000.00
Total 32020268.53 749413182.91
XVIII. Supplementary Materials to the Financial Statements
1. Items and amounts of non-recurring profit or loss in the current period
Item Amount of currentperiod Notes
Profit or losses on disposal of non-current assets (including the portion offset
for provisions for asset impairment) 837373.68
Government subsidies included in profit and loss of the current period
(except for government subsidies that are closely related to the Company's
normal business operation comply with national policies and are enjoyed in 55171603.63
accordance with defined criteria and have a continuing impact on the
Company's profit or loss)
Profit or losses from changes in fair value of financial assets and liabilities
held by non-financial corporations and profit or losses from the disposal of
financial assets and liabilities except for effective hedging operations related -165919193.12
to the Company's normal business operations
Dispossession surcharge to non-financial institutions included in the current
profit and loss
Gain/Loss on entrusting others with investments or asset management
Gain/loss on entrustment loans 63154861.04
Losses on assets resulted from force majeure factors such as natural disasters
270Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
Item Amount of currentperiod Notes
Reclassification of impairment loss allowances of receivables separately
tested for impairment
Profits arising from business combination when the combined cost is less
than the recognised fair value of net assets of the merged company
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
Profit/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 profit or 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 of which the follow-
up measurement is carried out adopting fair value method
Income from transactions at significantly unfair prices
Profit and losses arising from contingencies unrelated to the normal operation
of the Company's business
Custodian fees earned from entrusted operation
Non-operating income and expenses other than those listed above 11832131.66
Other profit and loss items in line with the definition of non-recurring gains
and losses 30000710.67
Subtotal -4922512.44
Less: Income tax effect -29890840.20
Effect of minority shareholders' equities (after tax) 9471559.59
Total 15496768.17 —
(1) Specific information on other profit and loss items that meet the definition of non recurring gains and
271Notes to financial statements of Konka Group Co. Ltd.
1 January 2024-30 June 2024
(Unless otherwise specified the notes to the financial statements are presented in renminbi)
losses:
Item Amount Reasons
In March 2024 one of the Company’s holding
subsidiaries in Dalian entered into bankruptcy
and liquidation proceedings pursuant to a court
decision and has been taken over by a court-
Reversal of excess losses recognized in 31971388.49 appointed bankruptcy and liquidationprevious periods administrator to take over the relevant
information and physical objects and the
Company no longer controls this company and
therefore it has reversed the excess losses
recognized in previous periods.Derecognition of revenue for financial
assets measured at amortized costs -1970677.82 Derecognition of revenue for notes receivable
(2) The Company recognises 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) as non-recurring profit or loss items and those involving significant mounts as well as the non-
recurring profit or loss items listed as recurring profit or loss items
Item Amount Reasons
Government subsidies which are closely
related to the normal business of the
Software tax refund 1596783.94 company and which are in accordance with
national policies and certain standard quota
or quantitative amount
2. Return on net assets and earnings per share
Weighted average EPS (RMB/share)
Profit for the Reporting Period Weighted average return on net
assets (%) Basic earnings per Diluted earningsshare per share
Net profit attributable to ordinary
shareholders of the Company as the -21.33 -0.4517 -0.4517
Parent
Net profit attributable to ordinary
shareholders of the Company as the
Parent before exceptional gains and -21.64 -0.4581 -0.4581
losses
The Board of Directors
Konka Group Co. Ltd.
31 August 2024
272
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