Konka Group Co. Ltd. Third Quarterly Report 2021

Stock Code: 000016 200016 Stock Name: Konka Group-A Konka Group-B Announcement No. 2021-87

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

114524 114894 19 Konka 06 21 Konka 01

133003 133040 21 Konka 02 21 Konka 03

KONKA GROUP CO. LTD.THIRD QUARTERLY REPORT 2021

Konka Group Co. Ltd. (hereinafter referred to as the “Company”) and all the members of the

Company’s Board of Directors hereby guarantee that the contents of this Report are true accurate and

complete and free of any misrepresentations misleading statements or material omissions.Important Notes:

1. The Board of Directors (or the “Board”) the Supervisory Committee as well as the directors

supervisors and senior management of the Company hereby guarantee that the contents of this Report

are true accurate and complete and free of any misrepresentations misleading statements or material

omissions and collectively and individually accept legal responsibility for such contents.

2. The Company’s legal representative Chief Financial Officer (CFO) and head of the financial

department (equivalent to financial manager) hereby guarantee that the financial statements carried in

this Report are factual accurate and complete.

3. Indicate by tick mark whether the financial statements in this Report have been audited by an

independent auditor.□Yes √ No

I Key Financial Information

(I) Key Accounting Data and Financial Indicators

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

Q3 2021 YoY change (%) Q1-Q3 2021 YoY change (%)

Operating revenue (RMB) 9816584505.55 -20.04% 31626746378.63 6.13%

Net profit attributable to the listed

-211828259.25-140.68%-126378339.68-120.54%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before -343893316.75 59.25% -1054017954.60 29.45%

exceptional gains and losses (RMB)

Net cash generated from/used in

————-1442234383.09-22.65%

operating activities (RMB)

Basic earnings per share (RMB/share) -0.0880 -140.70% -0.0525 -120.54%

1Konka Group Co. Ltd. Third Quarterly Report 2021

Diluted earnings per share -0.0880 -140.70% -0.0525 -120.54%

(RMB/share)

Weighted average return on equity (%) -2.54% -8.81% -1.51% -8.88%

30 September 2021 31 December 2020 Change (%)

Total assets (RMB) 53000401444.22 49876267493.61 6.26%

Equity attributable to the listed

8065742160.828428640176.97-4.31%

company’s shareholders (RMB)

(II) Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item Q3 2021 Q1-Q3 2021 Note

Gain or loss on disposal of non-current assets (inclusive of

66306638.40334537657.20

impairment allowance write-offs)

Government grants through profit or loss (exclusive of

government grants continuously given in the Company’s

35523626.41750134716.54

ordinary course of business at fixed quotas or amounts as

per the government’s policies and standards)

Gain or loss on fair-value changes on held-for-trading

financial assets and liabilities & income from disposal of

held-for-trading financial assets and liabilities and

23284757.3798214030.35

available-for-sale financial assets (exclusive of the

effective portion of hedges that arise in the Company’s

ordinary course of business)

Gain or loss on loan entrustments 20982294.05 57446982.60

Non-operating income and expense other than the above 42034278.57 57058069.53

Less: Income tax effects 43387800.28 273232093.50

Non-controlling interests effects (net of tax) 12678737.02 96519747.80

Total 132065057.50 927639614.92 --

Other items that meet the definition of exceptional gain/loss:

□ Applicable √ Not applicable

No such cases in the Reporting Period.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

Item Amount (RMB) Reason

Government grants continuously given in the Company’s ordinary

Tax rebates on software 9928764.26 course of business at fixed quotas or amounts as per the government’s

policies and standards

(III) Changes in Key Financial Statement Line Items and Explanation

√ Applicable □ Not applicable

Unit: RMB

Percentage

Item Q1-Q3 2021 Q1-Q3 2020 Main reason for change

of change

Taxes and levies 65291404.77 48302193.04 35.17% Increase in stamp tax and land use tax

Other income 760063480.80 468038917.63 62.39% Increase in government grants

2Konka Group Co. Ltd. Third Quarterly Report 2021

The disposal of the 51% interest in Dongguan Konka

Return on investment 467513252.27 1932345020.63 -75.81% Investment Co. Ltd. in the same period of last year is

not recurrent

Changes in the fair value of financial assets at fair value

Gain on changes in

80454582.18 0 through profit or loss were recognized in the current

fair value

period

Credit impairment Decrease in allowances for expected credit impairment

-83508804.27-419369553.8380.09%

loss losses on receivables

Asset impairment

-37285530.58 -98202971.26 62.03% Decrease in inventory valuation allowances

loss

Asset disposal The disposal of certain patents in the same period of last

613907.69188079246.33-99.67%

income year is not recurrent

Non-operating Increase of various profits not directly related to the

65341959.0122568475.79189.53%

income daily business activities of the enterprise

Non-operating

8552951.51 14122911.48 -39.44% Decrease of various non operating expenses

expense

The current period saw a decline in the gross profit

margin of principal operations as a result of sharp

Net profit attributable fluctuations of raw material prices fiercer market

to owners of the competition weak domestic consumption impact of the

-126378339.68615363686.82-120.54%

Company as the continued overseas pandemic on exports etc.parent Additionally the disposal of the 51% interest in

Dongguan Konka Investment Co. Ltd. in the same

period of last year is not recurrent.Cash payments for the acquisition of fixed assets

Net cash generated intangible assets and other long-lived assets increased in

from/used in -2053591456.11 1009532040.97 -303.42% the current period; and the income from the disposal of

investing activities the 51% interest in Dongguan Konka Investment Co.Ltd. in the same period of last year is not recurrent

Net cash generated

from/used in 5212196615.36 646414699.45 706.32% Increase in borrowings obtained

financing activities

II Shareholder Information

(I) Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting

Rights as well as Holdings of Top 10 Shareholders

Unit: share

Number of preference shareholders with resumed

Number of ordinary shareholders 94300 0

voting rights (if any)

Top 10 shareholders

Shareh Shares in pledge or

Nature of olding Total shares Restricted frozen

Name of shareholder

shareholder percent held shares held Shar

age Status es

OVERSEAS CHINESE TOWN State-owned

21.75%5237469320

HOLDINGS COMPANY legal person

CITIC SECURITIES BROKERAGE Foreign legal

7.48%1800011100

(HONG KONG) CO. LTD. person

Domestic

WANG JINGFENG 4.61% 111000000 0

natural person

GUOYUAN SECURITIES BROKER Foreign legal

2.47%595003250

(HK) CO. LTD. person

Foreign legal

HOLY TIME GROUP LIMITED 2.38% 57289100 0

person

Foreign legal

GAOLING FUNDL.P. 2.19% 52801250 0

person

LI HANFA Domestic 1.97% 47546687 0

3Konka Group Co. Ltd. Third Quarterly Report 2021

natural person

Foreign natural

NAM NGAI 0.94% 22567540 0

person

CHINA MERCHANTS SECURITIES State-owned

0.80%193142200

(HK) LIMITED legal person

BOCOM INTERNATIONAL Foreign legal

0.76%182061370

SECURITIES LIMITED person

Top 10 unrestricted shareholders

Shares by class

Name of shareholder Unrestricted ordinary shares held

Class Shares

OVERSEAS CHINESE TOWN RMB-denominated

523746932523746932

HOLDINGS COMPANY ordinary share

CITIC SECURITIES BROKERAGE Domestically listed

180001110180001110

(HONG KONG) CO. LTD. foreign share

RMB-denominated

WANG JINGFENG 111000000 111000000

ordinary share

GUOYUAN SECURITIES BROKER Domestically listed

5950032559500325

(HK) CO. LTD. foreign share

Domestically listed

HOLY TIME GROUP LIMITED 57289100 57289100

foreign share

Domestically listed

GAOLING FUNDL.P. 52801250 52801250

foreign share

RMB-denominated

LI HANFA 47546687 47546687

ordinary share

Domestically listed

NAM NGAI 22567540 22567540

foreign share

CHINA MERCHANTS SECURITIES Domestically listed

1931422019314220

(HK) LIMITED foreign share

BOCOM INTERNATIONAL Domestically listed

1820613718206137

SECURITIES LIMITED foreign share

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

majority shareholder Overseas Chinese Town Holdings Company (“OCT Group” for

short) holds 180001110 and 18360000 ordinary shares in the Company

Related or acting-in-concert parties among respectively through CITIC Securities Brokerage (Hong Kong) Co. Ltd. and China

shareholders above Merchants Securities (HK) Limited. Happy Bloom Investment Limited and Overseas

Chinese Town Holdings Company are parties acting in concert. Other than that it is

unknown whether the other shareholders are related parties or acting-in-concert

parties or not.Wang Jingfeng holds 111000000 A-shares in the Company through his securities

Top 10 ordinary shareholders involved in account for customer credit trading guarantee in Guotai Junan Securities Co. Ltd.securities margin trading Li Hanfa holds 47546687 A-shares in the Company through his securities account

for customer credit trading guarantee in Western Securities Co. Ltd.(II) Number of Preference Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

III Other Significant Events

√ Applicable □ Not applicable

(I) Issuance of corporate bonds: So far the plan for a public offering of RMB2.7 billion corporate

bonds has been approved at a general meeting of the Company. And the said program is proceeding as

scheduled.(II) Asset purchases via share offering and cash payment and matching fund raising: The Company

intended to acquire the 100% equity interests in Ganzhou MingGao Technology Co. Ltd. (MingGao

4Konka Group Co. Ltd. Third Quarterly Report 2021

Technology) from the 11 shareholders of MingGao Technology (including Shenzhen MingGao

Investment Holding Co. Ltd.) via share offering and acquire the 100% equity interests in Jiangsu

Highstar Battery Manufacturing Co. Ltd. (Highstar Battery) from the 33 shareholders of Highstar

Battery (including Jiangsu Highstar Group Co. Ltd.) via share offering and cash payment. To raise

the matching funds the Company planned to carry out a share offering to its controlling shareholder

Overseas Chinese Town Holdings Company. On 11 September 2021 the Company disclosed the

preliminary plan of the said transaction. Currently the Company and the other parties concerned are

actively proceeding with the transaction and the relevant audit assessment etc. are still in the

process.IV Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by Konka Group Co. Ltd.

30 September 2021

Unit: RMB

Item 30 September 2021 31 December 2020

Current assets:

Monetary assets 6517483201.63 5431530180.90

Settlement reserve

Loans to other banks and financial institutions

Held-for-trading financial assets 618249541.66

Derivative financial assets

Notes receivable 1805167372.43 2358180193.96

Accounts receivable 4590310234.93 3900897623.59

Receivables financing 22519281.92 84057197.44

Prepayments 1329877710.17 1183270543.41

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 2003507116.79 2145736640.60

Including: Interest receivable 64629158.09 45109425.85

Dividends receivable 547848.62 4947848.62

Financial assets purchased under resale agreements

Inventories 4971885304.17 4521300677.41

Contract assets 3353598614.87 2870006710.39

Assets held for sale

Current portion of non-current assets 15966544.22 112310158.82

Other current assets 2192366633.07 1913146483.39

Total current assets 26802682014.20 25138685951.57

Non-current assets:

Loans and advances to customers

Debt investments

5Konka Group Co. Ltd. Third Quarterly Report 2021

Other debt investments

Long-term receivables 388763891.86 399497204.03

Long-term equity investments 4517861815.37 4375833584.65

Investments in other equity instruments 25343293.16 25343293.16

Other non-current financial assets 2123842467.93 1878154796.76

Investment property 514016612.30 538585668.29

Fixed assets 3778113899.37 3178642017.84

Construction in progress 9679677544.14 9236643931.68

Productive living assets

Oil and gas assets

Right-of-use assets 80331299.82

Intangible assets 1682310457.35 1189191001.51

Development costs 4197749.71

Goodwill 675795873.17 675795873.17

Long-term prepaid expense 208785338.59 153198562.82

Deferred income tax assets 1438977337.24 1265916437.39

Other non-current assets 1079701850.01 1820779170.74

Total non-current assets 26197719430.02 24737581542.04

Total assets 53000401444.22 49876267493.61

Current liabilities:

Short-term borrowings 10175223585.74 10990550475.78

Borrowings from the central bank

Loans from other banks and financial institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1131332605.48 1335987026.21

Accounts payable 9900406852.26 9632366325.76

Advances from customers

Contract liabilities 915365318.79 1217367735.94

Financial assets sold under repurchase agreements

Customer deposits and deposits from other banks and

financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 181632538.41 476616244.45

Taxes and levies payable 288511309.50 508214059.16

Other payables 1693347629.84 1999430899.69

Including: Interest payable 217393304.06 220837380.17

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets held for sale

Current portion of non-current liabilities 4939693616.89 376896566.29

Other current liabilities 270159345.13 441774317.23

Total current liabilities 29495672802.04 26979203650.51

Non-current liabilities:

Insurance contract reserve

6Konka Group Co. Ltd. Third Quarterly Report 2021

Long-term borrowings 9782332433.81 5964748997.54

Bonds payable 2292323113.26 4993212788.32

Including: Preference shares

Perpetual bonds

Lease liabilities 51408096.50

Long-term payables 441742380.11 481409849.96

Long-term employee benefits payable 5145947.70 5248309.14

Provisions 100954889.87 102353567.91

Deferred income 233957947.45 446900524.64

Deferred income tax liabilities 89667473.05 75819231.93

Other non-current liabilities 113038148.97 106475449.02

Total non-current liabilities 13110570430.72 12176168718.46

Total liabilities 42606243232.76 39155372368.97

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 234215703.91 230185310.09

Less: Treasury stock

Other comprehensive income -16338571.91 -16583042.42

Specific reserve

Surplus reserves 1211721109.67 1211721109.67

General reserve

Retained earnings 4228198511.15 4595371391.63

Total equity attributable to owners of the Company as the 8065742160.82 8428640176.97

parent

Non-controlling interests 2328416050.64 2292254947.67

Total owners’ equity 10394158211.46 10720895124.64

Total liabilities and owners’ equity 53000401444.22 49876267493.61

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua

2. Consolidated Income Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2021 Q1~Q3 2020

1. Revenues 31626746378.63 29801145271.16

Including: Operating revenue 31626746378.63 29801145271.16

Interest income

Insurance premium income

Fee and commission income

2. Costs and expenses 32958502701.12 31294628818.95

Including: Cost of sales 30206985064.55 27874517742.42

Interest expense

Fee and commission expense

Surrenders

Net insurance claims paid

Net amount provided as insurance contract

reserve

7Konka Group Co. Ltd. Third Quarterly Report 2021

Expenditure on policy dividends

Reinsurance premium expense

Taxes and levies 65291404.77 48302193.04

Selling expense 1024179934.62 1412344800.39

Administrative expense 553122321.69 731101590.75

R&D expense 433072311.03 486664300.94

Finance costs 675851664.46 741698191.41

Including: Interest expense 743648860.62 742208965.50

Interest income 123952533.58 132894768.38

Add: Other income 760063480.80 468038917.63

Return on investment (“-” for loss) 467513252.27 1932345020.63

Including: Share of profit or loss of joint ventures 75468924.12 45185728.73

and associates

Income from the derecognition of financial assets

at amortized cost (“-” for loss)

Exchange gain (“-” for loss)

Net gain on exposure hedges (“-” for loss)

Gain on changes in fair value (“-” for loss) 80454582.18

Credit impairment loss (“-” for loss) -83508804.27 -419369553.83

Asset impairment loss (“-” for loss) -37285530.58 -98202971.26

Asset disposal income (“-” for loss) 613907.69 188079246.33

3. Operating profit (“-” for loss) -143905434.40 577407111.71

Add: Non-operating income 65341959.01 22568475.79

Less: Non-operating expense 8552951.51 14122911.48

4. Gross profit (“-” for loss) -87116426.90 585852676.02

Less: Income tax expense 41529133.86 44203698.68

5. Net profit (“-” for net loss) -128645560.76 541648977.34

5.1 By operating continuity

5.1.1 Net profit from continuing operations (“-” for net -128645560.76 541648977.34

loss)

5.1.2 Net profit from discontinued operations (“-” for net

loss)

5.2 By ownership

5.2.1 Net profit attributable to owners of the Company -126378339.68 615363686.82

as the parent

5.2.1 Net profit attributable to non-controlling interests -2267221.08 -73714709.48

6. Other comprehensive income net of tax -891213.66 -46863350.96

Attributable to owners of the Company as the parent 244470.51 -44798700.49

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 244470.51 -44798700.49

6.2.1 Other comprehensive income that will be 1486086.18

reclassified to profit or loss under the equity method

6.2.2 Changes in the fair value of other debt

8Konka Group Co. Ltd. Third Quarterly Report 2021

investments

6.2.3 Other comprehensive income arising from the

reclassification of financial assets

6.2.4 Credit impairment allowance for other debt

investments

6.2.5 Reserve for cash flow hedges

6.2.6 Differences arising from the translation of -1241615.67 -44798700.49

foreign currency-denominated financial statements

6.2.7 Other

Attributable to non-controlling interests -1135684.17 -2064650.47

7. Total comprehensive income -129536774.42 494785626.38

Attributable to owners of the Company as the parent -126133869.17 570564986.33

Attributable to non-controlling interests -3402905.25 -75779359.95

8. Earnings per share

8.1 Basic earnings per share -0.0525 0.2556

8.2 Diluted earnings per share -0.0525 0.2556

Legal representative: Zhou Bin CFO: Li Chunlei Head of the financial department: Guo Zhihua

3. Consolidated Cash Flow Statement for Q1~Q3

Unit: RMB

Item Q1~Q3 2021 Q1~Q3 2020

1. Cash flows from operating activities:

Proceeds from sale of commodities and rendering of services 30451464764.24 29184784329.28

Net increase in customer deposits and deposits from other banks

and financial institutions

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 fees and commissions received

Net increase in loans from other banks and financial institutions

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax and levy rebates 333893980.47 158747704.56

Cash generated from other operating activities 1172860994.12 2779748792.23

Subtotal of cash generated from operating activities 31958219738.83 32123280826.07

Payments for commodities and services 29601035244.82 28608102086.75

Net increase in loans and advances to customers

Net increase in deposits in the central bank and other banks and

financial institutions

Payments for claims on original insurance contracts

Net increase in loans to other banks and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 1511165362.18 1359110793.58

Taxes and levies paid 710317427.85 785311074.53

Cash used in other operating activities 1577936087.07 2546630231.54

Subtotal of cash used in operating activities 33400454121.92 33299154186.40

Net cash generated from/used in operating activities -1442234383.09 -1175873360.33

9Konka Group Co. Ltd. Third Quarterly Report 2021

2. Cash flows from investing activities:

Proceeds from disinvestment 343726934.95 695562072.60

Return on investment 92533320.06 97902372.90

Net proceeds from the disposal of fixed assets intangible assets and 234447891.30 305251144.96

other long-lived assets

Net proceeds from the disposal of subsidiaries and other business 133143680.12 588620437.06

units

Cash generated from other investing activities 1096314874.18 2057357513.79

Subtotal of cash generated from investing activities 1900166700.61 3744693541.31

Payments for the acquisition of fixed assets intangible assets and 3121184726.92 2417483605.63

other long-lived assets

Payments for investments 397009568.49 162157119.25

Net increase in pledged loans granted

Net payments for the acquisition of subsidiaries and other business 96500200.00

units

Cash used in other investing activities 339063661.31 155520775.46

Subtotal of cash used in investing activities 3953758156.72 2735161500.34

Net cash generated from/used in investing activities -2053591456.11 1009532040.97

3. Cash flows from financing activities:

Capital contributions received 101867396.60 133039439.25

Including: Capital contributions by non-controlling interests to 101867396.60 133039439.25

subsidiaries

Borrowings received 17581759690.86 14453038928.17

Cash generated from other financing activities 806757381.62 1396812658.86

Subtotal of cash generated from financing activities 18490384469.08 15982891026.28

Repayment of borrowings 11785342761.93 13243185186.02

Interest and dividends paid 812169473.64 745791874.18

Including: Dividends paid by subsidiaries to non-controlling 7497000.00 4513500.00

interests

Cash used in other financing activities 680675618.15 1347499266.63

Subtotal of cash used in financing activities 13278187853.72 15336476326.83

Net cash generated from/used in financing activities 5212196615.36 646414699.45

4. Effect of foreign exchange rates changes on cash and cash -5440009.98 -22135152.50

equivalents

5. Net increase in cash and cash equivalents 1710930766.18 457938227.59

Add: Cash and cash equivalents beginning of the period 4298056113.24 4493701917.22

6. Cash and cash equivalents end of the period 6008986879.42 4951640144.81

(II) Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2021)

of the New Accounting Standards Governing Leases

√ Applicable □ Not applicable

Whether items of the balance sheet at the beginning of the year need adjustments

√ Yes □ No

Consolidated balance sheet

Unit: RMB

Item 31 December 2020 1 January 2021 Adjustment

Current assets:

Monetary assets 5431530180.90 5431530180.90

10Konka Group Co. Ltd. Third Quarterly Report 2021

Settlement reserve

Loans to other banks and financial

institutions

Held-for-trading financial assets 618249541.66 618249541.66

Derivative financial assets

Notes receivable 2358180193.96 2358180193.96

Accounts receivable 3900897623.59 3900897623.59

Receivables financing 84057197.44 84057197.44

Prepayments 1183270543.41 1182471715.24 -798828.17

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract reserve

Other receivables 2145736640.60 2145209803.70 -526836.90

Including: Interest receivable 45109425.85 45109425.85

Dividends receivable 4947848.62 4947848.62

Financial assets purchased under resale

agreements

Inventories 4521300677.41 4521300677.41

Contract assets 2870006710.39 2870006710.39

Assets held for sale

Current portion of non-current assets 112310158.82 112310158.82

Other current assets 1913146483.39 1913146483.39

Total current assets 25138685951.57 25137360286.50 -1325665.07

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables 399497204.03 399497204.03

Long-term equity investments 4375833584.65 4375833584.65

Investments in other equity instruments 25343293.16 25343293.16

Other non-current financial assets 1878154796.76 1878154796.76

Investment property 538585668.29 538585668.29

Fixed assets 3178642017.84 3178642017.84

Construction in progress 9236643931.68 9236643931.68

Productive living assets

Oil and gas assets

Right-of-use assets 103838847.54 103838847.54

Intangible assets 1189191001.51 1189191001.51

Development costs

Goodwill 675795873.17 675795873.17

Long-term prepaid expense 153198562.82 153198562.82

Deferred income tax assets 1265916437.39 1265916437.39

Other non-current assets 1820779170.74 1820779170.74

Total non-current assets 24737581542.04 24841420389.58 103838847.54

Total assets 49876267493.61 49978780676.08 102513182.47

Current liabilities:

Short-term borrowings 10990550475.78 10990550475.78

Borrowings from the central bank

11Konka Group Co. Ltd. Third Quarterly Report 2021

Loans from other banks and financial

institutions

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1335987026.21 1335987026.21

Accounts payable 9632366325.76 9632366325.76

Advances from customers

Contract liabilities 1217367735.94 1217367735.94

Financial assets sold under repurchase

agreements

Customer deposits and deposits from other

banks and financial institutions

Payables for acting trading of securities

Payables for underwriting of securities

Employee benefits payable 476616244.45 476616244.45

Taxes and levies payable 508214059.16 508214059.16

Other payables 1999430899.69 1991555887.10 -7875012.59

Including: Interest payable 220837380.17 220837380.17

Dividends payable

Fees and commissions payable

Reinsurance payables

Liabilities directly associated with assets

held for sale

Current portion of non-current liabilities 376896566.29 425552664.43 48656098.14

Other current liabilities 441774317.23 441774317.23

Total current liabilities 26979203650.51 27019984736.06 40781085.55

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 5964748997.54 5964748997.54

Bonds payable 4993212788.32 4993212788.32

Including: Preference shares

Perpetual bonds

Lease liabilities 61732096.92 61732096.92

Long-term payables 481409849.96 481409849.96

Long-term employee benefits payable 5248309.14 5248309.14

Provisions 102353567.91 102353567.91

Deferred income 446900524.64 446900524.64

Deferred income tax liabilities 75819231.93 75819231.93

Other non-current liabilities 106475449.02 106475449.02

Total non-current liabilities 12176168718.46 12237900815.38 61732096.92

Total liabilities 39155372368.97 39257885551.44 102513182.47

Owners’ equity:

Share capital 2407945408.00 2407945408.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserves 230185310.09 230185310.09

Less: Treasury stock

Other comprehensive income -16583042.42 -16583042.42

12Konka Group Co. Ltd. Third Quarterly Report 2021

Specific reserve

Surplus reserves 1211721109.67 1211721109.67

General reserve

Retained earnings 4595371391.63 4595371391.63

Total equity attributable to owners of the 8428640176.97 8428640176.97

Company as the parent

Non-controlling interests 2292254947.67 2292254947.67

Total owners’ equity 10720895124.64 10720895124.64

Total liabilities and owners’ equity 49876267493.61 49978780676.08 102513182.47

Notes for adjustment

The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.

21-Leases"(Cai Kuai [2018]No.35) in 2018 and the Company implemented it since 1 January 2021.

According to the new standards governing leases enterprises implementing this standard for the first

time should adjust the amount of retained earnings and other related items in the financial statements

at the beginning of the year when the standard is first implemented based on the cumulative impact o f

the first implementation of the standard and no adjustment is made to the information for the

comparable period.

2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First

Execution in 2021 of the New Accounting Standards Governing Leases

√ Applicable □ Not applicable

The Ministry of Finance issued the revised "Accounting Standards for Business Enterprises No.

21-Leases"(Cai Kuai [2018]No.35) in 2018 and the Company implemented it since 1 January 2021.

According to the new standards governing leases enterprises implementing this standard for the first

time should adjust the amount of retained earnings and other related items in the financial statements

at the beginning of the year when the standard is first implemented based on the cumulative impact of

the first implementation of the standard and no adjustment is made to the information for the

comparable period.(III) Independent Auditor’s Report

Indicate by tick mark whether the financial statements above have been audited by an independent

auditor.□Yes √ No

These financial statements have not been audited by such an auditor.The Board of Directors

Konka Group Co. Ltd

27 October 2021

13