深康佳Ｂ：2020年年度报告（英文版）（更新后）

KONKA GROUP CO. LTD.

ANNUAL REPORT 2020

March 2021

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.Liu Fengxi the Company’s legal representative Li Chunlei the Company’s Chief Financial

Officer (CFO) and Guo Zhihua 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 Board has approved a final dividend plan as follows: based on the 2407945408 shares a

cash dividend of RMB1 (tax inclusive) per 10 shares is to be distributed to the shareholders

with no bonus issue from either profit or capital reserves.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.Table of Contents

Part I Important Notes Table of Contents and Definitions ........................................................... 2

Part II Corporate Information and Key Financial Information ................................................. 10

Part III Business Summary ............................................................................................................. 15

Part IV Operating Performance Discussion and Analysis ........................................................... 18

Part V Significant Events ................................................................................................................ 44

Part VI Share Changes and Shareholder Information ................................................................. 98

Part VII Preferred Shares ............................................................................................................. 105

Part VIII Convertible Corporate Bonds ...................................................................................... 106

Part IX Directors Supervisors Senior Management and Staff................................................. 107

Part X Corporate Governance ...................................................................................................... 118

Part XI Corporate Bonds .............................................................................................................. 130

Part XII Financial Statements ...................................................................................................... 134

Part XIII Documents Available for Reference ............................................................................. 418

Definitions

Term Definition

The “Company” the “Group” “Konka Group” or

“we”

Konka Group Co. Ltd. and its consolidated subsidiaries except where the

context otherwise requires

Konka Ventures Konka Ventures Development (Shenzhen) 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.

Chuanghui Smart Nanjing Chuanghui Smart Technology Co. Ltd.

Yibin Konka Incubator Yibin Konka Incubator Management Co. Ltd.

Anhui Konka Anhui Konka Electronic Co. Ltd.

Kangzhi Trade Anhui Kangzhi Trade Co. Ltd.Konka Factoring Konka Factoring (Shenzhen) Co. Ltd.Konka Unifortune Shenzhen Konka Unifortune Technology Co. Ltd.Jiali International Jiali International (Hong Kong) Limited

Wankaida Shenzhen Wankaida Science and Technology Co. Ltd.

Dongguan Konka Dongguan Konka Electronic Co. Ltd.

Suining Konka Smart Suining Konka Smart Technology Co. Ltd.Konka Europe Konka (Europe) Co. Ltd.Konka Electrical Appliances Shenzhen Konka Electrical Appliances Co. Ltd.Telecommunication Technology Shenzhen Konka Telecommunications Technology Co. Ltd.Konka Mobility Konka Mobility Co. Limited

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.

Anhui Tongchuang Anhui Konka Tongchuang Electrical Appliances Co. Ltd.

Anhui Electrical Appliance Anhui Konka Electrical Appliance Technology Co. Ltd.

Frestec Refrigeration Henan Frestec Refrigeration Appliance Co. Ltd.

Frestec Smart Home Henan Frestec Smart Home Technology Co. Ltd.

Frestec Electrical Appliances Henan Frestec Electrical Appliances Co. Ltd.

Frestec Household Appliances Henan Frestec Household Appliances Co. Ltd.

Jiangsu Konka Smart Jiangsu Konka Smart Electrical Appliances Co. Ltd.Kangjiatong Sichuan Kangjiatong Technology Co. Ltd.Pengrun Technology Shenzhen Konka Pengrun Technology & Industry Co. Ltd.Jiaxin Technology Jiaxin Technology Co. Ltd.

Dongguan Packing Dongguan Konka Packing Materials Co. Ltd.

E2info Shenzhen E2info Network Technology Co. Ltd.

E2info (Hainan) E2info (Hainan) Network Technology Co. Ltd.

Beijing Konka Electronic Beijing Konka Electronic Co. Ltd.

Konka Leasing Konka Financial Leasing (Tianjin) Co. Ltd.Konka Circuit Shenzhen Kangjia circuit Co. Ltd.

Boluo Konka Precision Boluo Konka Precision Technology Co. Ltd.

Xiamen Dalong Xiamen Dalong Trading Co. Ltd.

Boluo Konka Boluo Konka PCB Co. Ltd.

Hong Kong Konka Hong Kong Konka Limited

Konka Electrical Appliances Investment Konka Electrical Appliances Investment & Development Co. Ltd.

Chain Kingdom Memory Technologies Chain Kingdom Memory Technologies Co. Limited

Chain Kingdom Memory Technologies

(Shenzhen)

Chain Kingdom Memory Technologies (Shenzhen) Co. Ltd.

Hefei KONSEMI Hefei KONSEMI Storage Technology Co. Ltd.Konka SmartTech Konka SmartTech Limited

Kangjietong Kangjietong (Hong Kong) Limited

Konka Electrical Appliances International Trading Konka Electrical Appliances International Trading Co. Ltd.Kanghao Technology Kanghao Technology Co. Ltd.Konka North America Konka North America LLC

Konka Investment Shenzhen Konka Investment Holding 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.Kangquan Enterprise Shenzhen Kangquan Enterprise Management Consulting Co. Ltd.Konka Suyuan Shenzhen Konka Suyuan Investment Industrial Co. Ltd.Shengxing Industrial Shenzhen Konka Shengxing Industrial Co. Ltd.Industrial Park Development Shenzhen Konka Industrial Park Development Co. Ltd.Zhitong Technology Shenzhen Konka Zhitong Technology Co. Ltd.

Electronics Technology Shenzhen Konka Electronics Technology Co. Ltd.

Anhui Zhilian Anhui Konka Zhilian E-Commerce Co. Ltd.

Youzhihui Shenzhen Youzhihui Technology Co. Ltd.Xiaojia Technology Shenzhen Xiaojia Technology Co. Ltd.Haimen Konka Haimen Konka Smart Technology Co. Ltd.

Chengdu Konka Smart Chengdu Konka Smart Technology Co. Ltd.

Chengdu Konka Electronic Chengdu Konka Electronic Co. Ltd.

XingDa HongYe GuangDong XingDa HongYe Electronic Co. Ltd.Shanghai Xinfeng Shanghai Xinfeng Zhuoqun PCB Co. Ltd.Liaoyang Kangshun Smart Liaoyang Kangshun Smart Technology Co. Ltd.Liaoyang Kangshun Renewable Liaoyang Kangshun Renewable Energy Co. Ltd.Nanjing Konka Nanjing Konka Electronics Co. Ltd.Yantai Laikang Yantai Laikang Industrial Development Co. Ltd.

Econ Technology Shandong Econ Technology Co. Ltd.

Beijing Econ Beijing Econ Runfeng Technology Co. Ltd.

Shanghai Jiyi Shanghai Jiyi Environmental Technology Co. Ltd.

Binzhou Econ Zhongke Binzhou Econ Zhongke Environmental Technology Co. Ltd.

Lairun Holding Laizhou Lairun Holding Co. Ltd.Lairun Environmental Protection Laizhou Lairun Environmental Protection Co. Ltd.Lairun Wastewater Laizhou Lairun Wastewater Treatment Co. Ltd.

Binhai Wastewater Laizhou Binhai Wastewater Treatment Co. Ltd.

Econ Environmental Engineering Econ Environmental Engineering Co. Ltd.

Rushan Econ Rushan Econ Water Environment Management Co. Ltd.

Binzhou Weiyijie Binzhou Weiyijie Environmental Technology Co. Ltd.

Binzhou Beihai Jingmai Binzhou Beihai Jingmai Industrial Development Co. Ltd.

Chunzhiran Yantai Chunzhiran Environmental Technology Co. Ltd.

Donggang Kangrun Donggang Kangrun Environmental Management Co. Ltd.

Kangrunhong Environmental Kangrunhong Environmental Technology (Yantai) Co. Ltd.

Dayi Kangrun Water Dayi Kangrun Water Co. Ltd.

Suining Pengxi Kangrun Suining Pengxi Kangrun Environmental Management Co. Ltd.Subei Kangrun Water Subei Mongol Autonomous County Kangrun Water Co. Ltd.Weifang Sihai Kangrun Weifang Sihai Kangrun Investment Operation Co. Ltd.Lushan Kangrun Environmental Lushan Kangrun Environmental Management Co. Ltd.

Funan Kangrun Water Funan Kangrun Water Co. Ltd.

Wuhan Runyuan Wastewater Wuhan Runyuan Wastewater Treatment Co. Ltd.Tongchuan Kangrun Honghui Tongchuan Kangrun Honghui Environmental Management Co. Ltd.Tingyuan Environmental Tingyuan Environmental Technology (Shanghai) Co. Ltd.Gaoping Kangrun Gaoping Kangrun Environmental Protection & Water Co. Ltd.Mengcheng Kangrun Mengcheng Kangrun Anjian Water Co. Ltd.Xixian Kangrun Xixian Kangrun Xijian Water Environment Development Co. Ltd.

Chongzhou Kangrun Chongzhou Kangrun Environment Co. Ltd.

Xi’an Kangrun Xi’an Gaoling Kangrun Environmental Engineering Co. Ltd.

Ankang Kangrun Ankang Kangrun Xinheng Water Environment Co. Ltd.

Changning Kangrun Changning Kangrun Water Co. Ltd.

Bokang Renewable Bokang Renewable Resources (Yantai) Co. Ltd.

Linfen Kangrun Linfen Kangrun Jinze Water Supply Co. Ltd.Konka Huanjia Konka Huanjia (Dalian) Environmental Technology Co. Ltd.Konka Huanjia (Henan) Konka Huanjia (Henan) Environmental Technology Co. Ltd.Shanghai Konka Shanghai Konka Industrial Co. Ltd.Yantai Kangjin Yantai Kangjin Technology Development Co. Ltd.Jiangxi Konka Jiangxi Konka New Material Technology Co. Ltd.Xinfeng Microcrystalline Jiangxi Xinfeng Microcrystalline Jade Co. Ltd.Nano Crystallized Glass Jiangxi Golden Phoenix Nano Crystallized Glass Co. Ltd.Jiangsu Konka Special Material Jiangsu Konka Special Material Technology Co. Ltd.Shenzhen Nianhua Shenzhen Nianhua Enterprise Management Co. Ltd.Shenzhen KONSEMI Shenzhen KONSEMI Co. Ltd.Hefei KONSEMI Hefei KONSEMI Storage Technology Co. Ltd.Yihe Electronic Hefei Yihe Electronic Co. Ltd.

Chongqing Konka Chongqing Konka Technology Development Co. Ltd.

Shenzhen Huiying Technology Shenzhen Konka Huiying Technology Co. Ltd.

Chongqing Huiying Technology Chongqing Konka Huiying Technology Co. Ltd.

Konka Eco-Development Shenzhen Konka Eco-Development Investment Co. Ltd.Suining Konka Industrial Park Suining Konka Industrial Park Development Co. Ltd.Konka Ronghe Konka Ronghe Industrial Technology (Zhejiang) Co. Ltd.Suining Electronic Technological Innovation Suining Konka Electronic Technological Innovation Co. Ltd.Shenzhen Chuangzhi Electrical Appliances Shenzhen Konka Chuangzhi Electrical Appliances Co. Ltd.Kanghong (Yantai) Environmental Kanghong (Yantai) Environmental Technology Co. Ltd.

Chongqing Kangxingrui Chongqing Kangxingrui Environmental Technology Co. Ltd.

Chongqing Kangxingrui Automobile Recycling Chongqing Kangxingrui Scraped Automobile Recycling Co. Ltd.

Chongqing Optoelectronic Technology Research

Institute

Chongqing Konka Optoelectronic Technology Research Institute Co. Ltd.

Xinying Semiconductor Konka Xinying Semiconductor Technology (Shenzhen) Co. Ltd.Konka Xinyun Semiconductor Konka Xinyun Semiconductor Technology (Yancheng) Co. Ltd.Jiangkang (Shanghai) Technology Jiangkang (Shanghai) Technology Co. Ltd.Ningbo Kanghanrui Electrical Appliances Ningbo Kanghanrui Electrical Appliances Co. Ltd.Konka Intelligent Manufacturing Shenzhen Konka Intelligent Manufacturing Technology Co. Ltd.Suining Jiarun Property Suining Jiarun Property Co. Ltd.Yantai Kangyun Yantai Kangyun Industrial Development Co. Ltd.Yantai Kangyun Property Yantai Kangyun Property Development Co. Ltd.

Chongqing Kanglei Optoelectronic Chongqing Kanglei Optoelectronic Technology Co. Ltd.

Yibin Kangrun Yibin Kangrun Environmental Technology Co. Ltd.Henan Kangxin Property Henan Kangxin Property Co. Ltd.Konka Material Hainan Konka Material Technology Co. Ltd.Shenzhen Kangxin Property Shenzhen Kangxin Property Co. Ltd.Henan Kanghan Property Henan Kanghan Property Co. Ltd.

Chengdu Konka Incubator Chengdu Konka Incubator Management Co. Ltd.

Cross-Border Technological Innovation Shenzhen Konka Cross-Border Technological Innovation Service Co. Ltd.

Konka Enterprise Management Guizhou Konka Enterprise Management Service Co. Ltd.Youshi Kangrong Youshi Kangrong Culture Communication Co. Ltd.Life Electric Appliance Shenzhen Konka Life Electric Appliance Co. Ltd.

Commercial System Technology Shenzhen Konka Commercial System Technology Co. Ltd.

Frestec Smart Henan Frestec Smart Eco Electrical Appliances Co. Ltd.

E3info E3info (Hainan) Technology Co. Ltd.

Yifang Technology Shenzhen Konka Yifang Technology Co. Ltd.Yuekang Semiconductor Yuekang Semiconductor Technology (Yantai) Co. Ltd.Kangshi Virtual Kangshi Virtual Technology (Yantai) Co. Ltd.Industrial New Town Sichuan Konka Industrial New Town Development Co. Ltd.Kangxin Technology Shenzhen Konka Kangxin Technology Co. Ltd.Hainan Technology Hainan Konka Technology Industry Development Co. Ltd.Nanjing Konka Nanjing Konka Smart Technology Co. Ltd.Zhongshan Kangxin Electronic Zhongshan Kangxin Electronic Technology Co. Ltd.Zhongshan Kang’ao Zhongshan Kang’ao Electronic Co. Ltd.

Boxing Xingkang Environmental Boxing Xingkang Environmental Technology Co. Ltd.

Yantai Konka Industrial Yantai Konka Industrial Co. Ltd.Shandong Kangxin Shandong Kangxin Industrial Development Co. Ltd.Shenzhen Morsemi Shenzhen Morsemi Semiconductor Technology Co. Ltd.Zhengmao Semiconductor Chongqing Zhengmao Semiconductor Co. Ltd.

Dongguan Konka Investment Dongguan Konka Investment Co. Ltd.

Kanghong (Yantai) Environmental Technology

Park

Kanghong (Yantai) Environmental Technology Park Co. Ltd.

Chongqing Konka Property Development Chongqing Konka Property Development Co. Ltd.

Chongqing Xingyi Property Chongqing Konka Xingyi Property Co. Ltd.

Chongqing Fuze Property Chongqing Konka Fuze Property Co. Ltd.

Debao New Material Anhui Konka Debao New Material Technology Co. Ltd.

Chuzhou Kangxin Health Industry Chuzhou Kangxin Health Industry Development Co. Ltd.

Kangxinlong Environmental Protection Hubei Kangxinlong Environmental Protection Co. Ltd.

Chongqing Chengda Chongqing Chengda Property Co. Ltd.

Chongqing Chunfu Chongqing Chunfu Property Co. Ltd.

Chongqing Langheng Chongqing Langheng Property Co. Ltd.

Morsemi Hong Kong Morsemi Semiconductor Technology (Hong Kong) Limited

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 Renminbi expressed in tens of thousands

of Renminbi expressed in hundreds of millions of Renminbi

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. 康佳集团

Company name in English (if

any)

KONKA GROUP CO.LTD

Abbr. (if any) KONKA GROUP

Legal representative Liu Fengxi

Registered address

15-24/F Konka R&D Center 28 Keji South Twelfth Road Science and Technology Park

Yuehai Street Nanshan District Shenzhen Guangdong Province China

Zip code 518057

Office address

15-24/F Konka R&D Center 28 Keji South Twelfth Road Science and Technology Park

Yuehai Street Nanshan District Shenzhen Guangdong Province China

Zip code 518057

Company website www.konka.com

Email address szkonka@konka.com

II Contact Information

Board Secretary Securities Representative

Name Wu Yongjun Miao Leiqiang

Address

Board Secretariat 24/F Konka R&D Center

28 Keji South Twelfth Road Science and

Technology Park Yuehai Street Nanshan

District Shenzhen Guangdong Province

China

Board Secretariat 24/F Konka R&D Center

28 Keji South Twelfth Road Science and

Technology Park Yuehai Street Nanshan

District Shenzhen Guangdong Province

China

Tel. 0755-26609138 0755-26609138

Fax 0755-26601139 0755-26601139

Email address szkonka@konka.com szkonka@konka.com

III Media for Information Disclosure and Place where this Report Is Lodged

Newspapers designated by the Company for

information disclosure

Securities Times etc.Website designated by CSRC for publication of http://www.cninfo.com.cn/new/index

this Report

Place where this Report is lodged

Board Secretariat 24/F Konka R&D Center 28 Keji South Twelfth Road

Science and Technology Park Yuehai Street Nanshan District Shenzhen

Guangdong Province China

IV Change to Company Registered Information

Unified social credit code 914403006188155783

Change to principal activity of the Company

since going public (if any)

No change

Every change of controlling shareholder since

incorporation (if any)

No change

V Other Information

The independent audit firm hired by the Company:

Name Shinewing Certified Public Accountants LLP

Office address

9/F Block A Fuhua Mansion No.8 Chaoyangmen North Street Dongcheng District

Beijing China

Accountants writing signatures Guo Dongchao and Zhan Miaoling

The independent sponsor hired by the Company to exercise constant supervision over the Company

in the Reporting Period:

□ Applicable √ Not applicable

The independent financial advisor hired by the Company to exercise constant supervision over the

Company in the Reporting Period:

□ Applicable √ Not applicable

VI Key Financial Information

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

2020 2019

2020-over-20

19 change

(%)

2018

Operating revenue (RMB) 50351836554.87 55119125478.72 -8.65% 46126797341.33

Net profit attributable to the listed

company’s shareholders (RMB)

477633250.14 212034210.08 125.26% 411289744.68

Net profit attributable to the listed

company’s shareholders before

-2367590806.95 -1875722546.18 -26.22% -795400491.44

exceptional gains and losses (RMB)

Net cash generated from/used in

operating activities (RMB)

178616528.21 -1543947284.59 111.57% -3229823872.66

Basic earnings per share

(RMB/share)

0.1984 0.0881 125.20% 0.1708

Diluted earnings per share

(RMB/share)

0.1984 0.0881 125.20% 0.1708

Weighted average return on equity

(%)

5.79% 2.62% 3.17% 5.11%

31 December 2020 31 December 2019

Change of 31

December

2020 over 31

December

2019 (%)

31 December 2018

Total assets (RMB) 49876267493.61 42586955452.27 17.12% 32985061889.03

Equity attributable to the listed

company’s shareholders (RMB)

8428640176.97 8068505598.13 4.46% 8104736790.53

Indicate by tick mark whether the lower of the net profit attributable to the listed company’s

shareholders before and after exceptional gains and losses was negative for the last three accounting

years and the latest independent auditor’s report indicated that there was uncertainty about the

Company’s ability to continue as a going concern.

□ Yes √ No

Indicate by tick mark whether the lower of the net profit attributable to the listed company’s

shareholders before and after exceptional gains and losses was negative.√ Yes □ No

Item 2020 2019 Note

Operating revenue (RMB) 50351836554.87 55119125478.72

Deductions from operating

revenue (RMB)

445172864.05 490479238.61

Revenue from scrap sales

utilities revenue handling

charges receivedrental

revenue material sales

revenue and other revenue

not related to the principal

business activities

Operating revenue net of

deductions (RMB)

49906663690.82 54628646240.11

VII 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 difference for the Reporting Period.

2. Net Profit and Equity under CAS and Foreign Accounting Standards

□ Applicable √ Not applicable

No difference for the Reporting Period.VIII Key Financial Information by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 7806520237.49 9717663659.25 12276961374.42 20550691283.71

Net profit attributable to the

listed company’s shareholders

-220602940.37 315304733.00 520661894.19 -137730436.68

Net profit attributable to the

listed company’s shareholders

before exceptional gains and

losses

-333520116.21 -316490379.26 -843908630.71 -873671680.77

Net cash generated from/used in

operating activities

-1031223468.58 -45143458.90 -99506432.85 1354489888.54

Indicate by tick mark whether any of the quarterly financial data in the table above or their

summations differs materially from what have been disclosed in the Company’s quarterly or interim

reports.□ Yes √ No

IX Exceptional Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Item 2020 2019 2018 Note

Gain or loss on disposal of non-current assets

(inclusive of impairment allowance write-offs)

2431648255.26 1202401420.41 732818574.90

Government subsidies charged to current profit 908546202.24 1204519346.40 259609022.27

or loss (exclusive of government subsidies given

in the Company’s ordinary course of business at

fixed quotas or amounts as per the government’s

uniform standards)

Gain equal to the amount by which investment

costs for the Company to obtain subsidiaries

associates and joint ventures are lower than the

Company’s enjoyable fair value of identifiable

net assets of investees when making investments

220045229.63

Gain or loss on assets entrusted to other entities

for investment or management

18476648.12 71541978.85 182022653.32

Gain or loss on debt restructuring 1127066.94 14515006.57

Gain or loss on fair-value changes in

held-for-trading and derivative financial assets

and liabilities & income from disposal of

held-for-trading and derivative financial assets

and liabilities and other investments in debt

obligations (exclusive of the effective portion of

hedges that arise in the Company’s ordinary

course of business)

96316772.78 49472415.17 39542461.74

Gain or loss on loan entrustments 64616181.90 1992676.20 1389042.48

Non-operating income and expense other than

the above

54271037.60 121189478.51 73907331.00

Other gains and losses that meet the definition of

exceptional gain/loss

1081111.64 145586810.18 17974523.98

Less: Income tax effects 544211364.67 545067993.60 253497204.45

Non-controlling interests effects (net of

tax)

186647854.72 178394382.43 67121398.75

Total 2845224057.09 2087756756.26 1206690236.12 --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or

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 involved

(RMB)

Reason

Tax

rebates on

software

30710313.50

Government subsidies given in the Company’s ordinary course of business at fixed quotas or

amounts as per government’s uniform standards

Part III Business Summary

I Principal Activity of the Company in the Reporting Period

(I) The Consumer Electronic Division

This division primarily comprises the multimedia sub-division and the white goods sub-division with

details as follows:

1. The Multimedia Sub-Division

The Company provides multimedia products and services including colour TVs and Internet TV

services for both domestic and overseas markets.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.Internet business is based on the intelligent TV terminals sold by our company. It mainly carries out

three aspects of business. Firstly it works with other Internet companies to provide end users with

among other content video educational music medical and game content to generate earnings.Secondly it analyses user behaviours and offer certain free interactive services to increase

attractiveness to users promote its brand and stimulate desire for its hardware products. Finally it is

trying to build an Internet TV platform with tens of millions of users on which it will profit through

commercial and application distribution. This Internet TV business is key to the Company’s

Internet-oriented transformation and upgrade to a development model of “hardware + software” and

“smart TV + end users”.

2. The White Goods Sub-Division

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. The Company also optimized the internal R&D production procurement sales and

services processes and integrated the external channel resources to enable channel sharing between

the upstream procurement processes and downstream sales processes. By taking advantage of this

opportunity the Company improved the product and sales structure and enhanced the management

of online channels.(II) The Industry Trade Business

In the industry trade business the Company benefits from purchasing and processing IC chips LCD

screens etc. which are raw materials in its traditional core business from upstream suppliers and sel

ling them to downstream customers. The industry trade business can help the Company establish goo

d relationships with its upstream suppliers and downstream customers and keep it informed of price

s of the materials used in its production for better cost control over its existing products. Additionally

it is able to facilitate the development of the semiconductor business by helping accumulate

customer resources for the semiconductor and chip business provide sales channels and achieve

accurate matching of market demand with a shortened product development period and a lower risk

of mismatching of R&D and market demand.(III) The Environmental Protection Division

Currently this business focuses on water treatment recycling of renewable resources and the new

material of glass ceramic. Water engineering PPP (Public-Private Partnership) projects are

undertaken under BOT (Build-Operate-Transfer) or EPC (Energy Performance Contracting) models.Renewable resources are collected sorted processed distributed and sold.(IV) The Semi-Conductor Division

Currently the Company is engaged in storage optoelectronics etc. with respect to the

semi-conductor business. In storage the Company primarily designs and markets master storage

chips and engage in packaging and testing of storage products. In optoelectronics the Company

primarily develops Micro LED-related products.II Significant Changes in Major Assets

1. Significant Changes in Major Assets

Major

assets

Main reason for significant changes

Equity

assets

No significant change

Fixed

assets

No significant change

Intangible

assets

No significant change

Constructi

on in

progress

The ending amount increased 115.23% from the beginning amount primarily driven by new environment

engineering in progress.2. Major Assets Overseas

□ Applicable √ Not applicable

III Core Competitiveness Analysis

The Company’s core competitiveness lies in its R&D ability brand marketing network and humanresources. It has developed a three-level R&D system of “Konka Research Institute-Multimedia

R&D Centre-specialized design institutes” 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 key technologies and about 150 talents The company has a

R & D team of more than 20 people and has introduced two projects of micro led and memory master

chip with more than 100 industry technical talents. 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. Offline channel the company has more than 40 branches more

than 200 offices more than 3000 after-sales service stores in all provinces and cities of China and the

marketing and service network is all over the country; online channel the company has settled in

tmall Jingdong Suning vipshop and other mainstream e-commerce platforms to innovate and

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. The company has many years of experience

in senior management and executive team.Part IV Operating Performance Discussion and Analysis

I Overview

In 2020 the Company continued to drive business development through technological innovation

implement the development model of "Technology + Industry + Parks" and foster a development

strategy that aims to promote industrial businesses through technological innovation incubate

industrial clusters through the core industrial businesses drive regional development through the

industrial clusters and nurture the technology and industrial businesses through regional

development-enabled resources while pursuing the mission of developing the Company into an

innovation and technology-driven industrial group.

For 2020 the Company recorded operating revenue of RMB50.352 billion. Net profit attributable to

the Company as the parent stood at RMB478 million representing a year-on-year rise of 125.26%.What the Company has accomplished in 2020 is summarized as follows:

(I) Increased investment in innovation and achieved technological breakthroughs

In 2020 following the guiding principle of "independent innovation + technology acquisition" the

Company increased investment in R&D focusing on semiconductor AI (artificial intelligence) and

other sectors. The annual R&D investment was RMB684 million up 36.57% year-on-year.

For the R&D system the Company established technological research partnerships with notable

universities technology enterprises and research institutions that match our industrial layout. This

initiative led to the establishment of several joint laboratories including the AI IoT Comprehensive

Laboratory 5G Ultra-High-Definition Laboratory and Guangdong-Hong Kong Big Data Image and

Communication Application Joint Laboratory.

In terms of talent acquisition the Company acquired a Micro-LED team of 269 people attracted 18

doctoral and postdoctoral researchers to join us and partnered with a team of academicians to

establish an academician workstation.In terms of R&D achievements the Company realized the mass production and commercial launch

of memory master chips and the Micro LED project successfully illuminated ultra-small chips

and successfully developed 7-inch flexible Micro LED displays. In addition the programme led by

the Company the Research and Industrialization of the Next-generation Internet Intelligent Terminal

Key Technology won the Guangdong Provincial Second Prize for Progress in Science and

Technology in 2019 the programme Research and Industrialization of Key Quality Management

Technologies for Food in Refrigerators won the Third Prize of Anhui Provincial Award for Progress

in Science and Technology and a patent titled Fuzzy Control Method for Rotating Speed of

Refrigerator Inverter Compressor won the Henan Provincial Award for Achievement in Science and

Technology.(II) Industry fund system that enables the implementation of strategies was established

In 2020 the Company established an industry fund system to enable coordinated strategy

implementation and industrial development. The initiative has established a series of industry funds

such as Yibin Kanghui Electronic Information Equity Investment Fund Yancheng Kangyan

Information Industry Equity Investment Fund Chongqing Kangxin Semiconductor Industry Equity

Investment Fund Kunshan Xinjia Emerging Industries Equity Investment Fund and

Tongxiang-Wuzhen Jiayu Digital Economy Industry Fund.(III) Business Operation Introduction

1. Industrial Product Division

(1) The Multimedia Sub-division

In 2020 focusing on reform and innovation the Multimedia Sub-division continued to drive

organization optimization and implemented a series of organization restructuring sales model

re-engineering cost reduction and efficiency improvement measures. Centering on the theme of“building high-end brands localizing overseas resources and diversifying manufacturing" thesub-division implemented several operation optimization and management improvement projects

and significantly reduced operating costs laying a foundation for further reform and continuous

operation upgrading.

(2) The White Goods Sub-division

In 2020 with the acquisition of Changzhou Beko's front loading washing machine production lines

the White Goods Sub-division improved the overall strength of our washing machine product

businesses and enriched the portfolio of white goods products (refrigerators washing machines and

air conditioners) with upgraded development strategies. In addition with the coordinated operation

of the Konka and Frestec brands the Sub-division made further breakthroughs in brand building

increased the production capacity for air conditioners focused on strategies for creating hot-selling

products and realized a growth in our white goods businesses.

(3) The Environmental Protection Sub-division

In 2020 the Environmental Protection Sub-division developed our environmental protection

businesses into a more systematic structure that centers on water and solid waste treatment

renewable resources and new materials. Active efforts were also made for expansion into new

sectors such as bio-organisms (Please confirm my translation or clarify the intended message.) and

chemical treatment of solid waste and exhaust gas.

(4) The Semiconductor Sub-division

In 2020 in the optoelectronics sector the Company established R&D and production lines covering

the entire manufacturing process of Micro LED realized small-batch pilot production runs

complete the application for nearly 700 core patents and launched small-pitch Micro LED

microcrystalline displays flexible displays 8K Micro LED commercial displays Micro LED

watches and other products. In the storage field the company independently designs the storage

master chip products to realize mass production and sales; secondly the company has developed

nearly 45 embedded hardware and solid-state hard disk products and realized the marketing; in

addition the company is actively promoting the implementation of the storage chip packaging test

base and completing the layout in the "design + seal test + sales" link of the storage industry.

(5) The Mobile Internet Sub-division

In 2020 the Mobile Internet Sub-division defined communication technology as a core enabler

focused on exploring the 5G IoT sector and implemented the "1 (smart phone) + 3 (tablet computer

wireless router and smart access control) + N (mobile communication accessories)" product

strategy.

(6) The PCB Sub-division

In 2020 the PCB Sub-division built Shenzhen Konka Circuit Co. Ltd. into a platform for unified

procurement and sales thereby improving operations management efficiency. With the kick off of

the Suining Konka Circuit Industrial Park project the "industry + park" mode achieved initial

success.

2. Technology Park Division

In 2020 continuing to pursue the "Technology + Industry + Parks" development mode the

Company launched more than ten technology park projects -- including the upgraded old facility of

Dongguan Konka Electronic Co. Ltd. Konka Minghu K-Care Town Yancheng Yangtze River

Delta Headquarters Base Frestech Refrigeration Industrial Park and Smart Terminals Export and

Production Base -- and developed the new "Industry + Parks + Fund" expansion mode. At present

while continuing to upgrade existing businesses through means of smart technologies and

improving the core competitiveness of the technology industry sector by taking advantage of the

industry clusters the Technology Park Sub-division worked to optimize asset allocation through

equity transfer and other means and accelerate the turnover of capital with the aim of further

nurturing the development of the technology industry sector.

3. Platform Service Division

(1) The Industry Trade Business

In 2020 the Industry Trade Sub-division actively promotes the transformation from trade to

industry and continuously adjusts the business structure while continuously improving and

improving the risk control mode.

(2) The Internet Sub-division

In 2020 with stepped up efforts to enhance our products' basic functionalities the Internet

Sub-division planned developed and commercially launched several major products including

Douping Yixue and Yihudong. With continuous efforts to upgrade our multi-scenario operation

mode the Company recorded a continuous growth in advertisement businesses OTT membership

revenue above RMB200 million and a growth of 55% in operating income from digital

entertainment businesses.

4. Financial Investment Division

(1) The Investment Sub-division

In 2020 the Company established several industry funds including Yibin Kanghui Electronic

Information Equity Investment Fund Yancheng Kangyan Information Industry Equity Investment

Fund Chongqing Kangxin Semiconductor Industry Equity Investment Fund Kunshan Xinjia

Emerging Industries Equity Investment Fund and Tongxiang-Wuzhen Jiayu Digital Economy

Industry Fund. These funds served well to support the implementation of strategies and

development of industrial businesses.

(2) The Venture Capital Investment Sub-division

In 2020 the Venture Capital Investment Sub-division completed the construction of a national

makerspace which has attracted a batch of high-tech enterprises to participate.

II Core Business Analysis

(I) Overview

See “I Overview” above.(II) Revenue and Cost Analysis

1. Breakdown of Operating Revenue

Unit: RMB

2020 2019

Change (%)

Operating revenue

As % of total

operating revenue (%)

Operating revenue

As % of total

operating revenue (%)

Total 50351836554.87 100% 55119125478.72 100% -8.65%

By operating division

Electronics 14279587069.66 28.36% 14746927518.74 26.75% -3.17%

Industry trade 30483602365.87 60.54% 32744925411.86 59.41% -6.91%

Environmental

business

4823779902.39 9.58% 7079397665.91 12.85% -31.86%

Semiconductor 282969230.63 0.56% ① - -

Other 481897986.32 0.96% 547874882.21 0.99% -12.04%

By product category

Color TVs 7519625331.33 14.93% 8765607417.92 15.90% -14.21%

White goods 3842051456.02 7.63% 3829318820.56 6.95% 0.33%

Industry trade 30483602365.87 60.55% 32744925411.86 59.41% -6.91%

Environmental

business

4823779902.39 9.58% 7079397665.91 12.84% -31.86%

Semiconductor 282969230.63 0.56% ② - -

Other 3399808268.63 6.75% 2699876162.47 4.90% 25.92%

By operating segment

Domestic 19911879269.36 39.55% 20324715174.80 36.87% -2.03%

Overseas 30439957285.51 60.45% 34794410303.92 63.13% -12.51%

①②the semiconductor business of the company is not accounted separately in 2019 so there is no comparable

data.

2. Operating Division Product Category or Operating Segment Contributing over 10% of

Operating Revenue or Operating Profit

√ Applicable □ Not applicable

Unit: RMB

Operating revenue Cost of sales

Gross profit

margin

YoY change in

operating revenue

(%)

YoY change in

cost of sales (%)

YoY change in

gross profit

margin (%)

By operating division

Electronics 14279587069.66 12768278497.25 10.58% -3.17% -2.67% -0.46%

Industry

trade

30483602365.87 30183532940.90 0.98% -6.91% -6.77% -0.14%

Environme

ntal

business

4823779902.39 4097138754.02 15.06% -31.86% -35.77% 5.17%

By product category

Color TVs 7519625331.33 6925658808.00 7.90% -14.21% -13.49% -0.77%

Industry

trade

30483602365.87 30183532940.90 0.98% -6.91% -6.77% -0.14%

Environme

ntal

business

4823779902.39 4097138754.02 15.06% -31.86% -35.77% 5.17%

By operating segment

Domestic 19911879269.36 17538443668.86 11.92% -2.03% -1.51% -0.47%

Overseas 30439957285.51 30056620681.12 1.26% -12.51% -12.45% -0.07%

Core business data of the prior year restated according to the changed statistical caliber for the

Reporting Period:

□ Applicable √ Not applicable

3. Whether Revenue from Physical Sales Is Higher than Service Revenue

√ Yes □ No

Operating division Item Unit 2020 2019 Change (%)

Electronics

Unit sales 0000 units 1269 1434 -11.51%

Output 0000 units 1244 1523 -18.32%

Inventory 0000 units 89 105 -15.24%

Any over 30% YoY movements in the data above and why:

□ Applicable √ Not applicable

4. Execution Progress of Major Signed Sales Contracts in the Reporting Period

□ Applicable √ Not applicable

5. Breakdown of Cost of Sales

By product category

Unit: RMB

Product

Category

Beginning balance

Carrying amount Bad debt provision

Carrying value

Amount

Propo

rtion

(%)

Amount

Withdr

awal

proport

ion (%)

Provision for bad

debts provided

individually

Bad debt provision

made as per portfolio

2842347510.24 100.00 4306077.35 0.15 2838041432.89

Of which: Bank

acceptance bill

2638629011.87 92.83 2638629011.87

Commercial

acceptance bill

203718498.37 7.17 4306077.35 2.11 199412421.02

Total 2842347510.24 100.00 4306077.35 0.15 2838041432.89

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

1) In the group notes receivable for which the provision for expected credit loss was made

according to trade acceptance

Name

Ending balance

Carrying amount

Bad debt

provision

Withdrawal

proportion (%)

Within 1 year 1042013168.06 29237068.63 2.81

Total 1042013168.06 29237068.63 2.81

(6) Bad debt provision for notes receivable withdrawn collected or reversed during the Reporting

Period

Category

Beginning

balance

Changed amount

Ending balance

Withdrawal Collecte

d or

reversed

Write-off

or verified

Commercial

acceptance bill

4306077.35 24930991.28 29237068.63

Total 4306077.35 24930991.28 29237068.63

(7) There is no notes receivable actually written off in the current year.

There is no notes receivable actually written off in the current year.

4. Accounts Receivable

(1) Listed by Withdrawal Methods for Expected Credit Loss

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Proport

ion (%)

Amount

Withdr

awal

proport

ion (%)

Accounts receivable

for which the

independent provision

for expected credit

1384462893.38 27.50 750096749.22 54.18 634366144.16

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Proport

ion (%)

Amount

Withdr

awal

proport

ion (%)

losses

Accounts receivable

for which the provision

for expected credit

losses was withdrawn

according to groups

Of which: aging group 3004054396.28 59.66 271291702.62 9.03 2732762693.66

Project payment

group

646556634.10 12.84 112787848.33 17.44 533768785.77

Subtotal of groups 3650611030.38 72.50 384079550.95 10.52 3266531479.43

Total 5035073923.76 100.00 1134176300.17 22.53 3900897623.59

(Continued)

Category

Beginning balance

Carrying amount Bad debt provision

Carrying value

Amount

Proport

ion (%)

Amount

Withdr

awal

proport

ion (%)

Accounts receivable

for which the

independent provision

for expected credit

losses

1093505612.71 24.31 384089197.98 35.12 709416414.73

Accounts receivable

for which the provision

for expected credit

losses was withdrawn

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Category

Beginning balance

Carrying amount Bad debt provision

Carrying value

Amount

Proport

ion (%)

Amount

Withdr

awal

proport

ion (%)

according to groups

Of which: aging group 2820178866.87 62.69 236910263.28 8.40 2583268603.59

Project payment

group

584680503.88 13.00 73025879.05 12.49 511654624.83

Subtotal of groups 3404859370.75 75.69 309936142.33 9.10 3094923228.42

Total 4498364983.46 100.00 694025340.31 15.43 3804339643.15

1) Accounts receivable for which the independent provision for expected credit loss is made at

the period-end

Name

Ending balance

Carrying

amount

Bad debt

provision

Withdr

awal

proport

ion (%)

Withdrawal reason

Shanghai Huaxin International

Group Co. Ltd

300018021.01 240014416.81 80.00 Debt default

Tewoo Finance Company

Limited

200000000.00 90000000.00 45.00 Judicial reorganization

Hongtu Sanbao High-tech

Technology Co. Ltd.

200000000.00 80000000.00 40.00

Agreement

reorganization

China Nuclear Engineering

Construction Group Co. Ltd

74582619.13 22374785.74 30.00 Increased credit risk

No.1 Engineering Company

Limited of CCCC First Harbor

Engineering Company Limited

65221300.00 58699170.00 90.00

Expected to be difficult

to recover in full

China Energy Electric Fuel Co.

Ltd

50000000.00 40000000.00 80.00

Expected to be difficult

to recover in full

Tahoe Group Co. Ltd 50000000.00 20000000.00 40.00 Debt reorganization

Empire Electronic Corp 42472943.03 42472943.03 100.00 Long-term collection and

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name

Ending balance

Carrying

amount

Bad debt

provision

Withdr

awal

proport

ion (%)

Withdrawal reason

cannot be recovered

H-BUSTER DO BRASIL

INDUSTRIA

17945518.46 17945518.46 100.00

The counterparty is

bankrupt and is expected

to be difficult to recover

in full

Treeview Business Registration 11648757.09 11648757.09 100.00

Expected to be difficult

to recover in full

Others 372573734.66 126941158.09 34.07

Expected to be difficult

to recover in full

Total 1384462893.38 750096749.22 54.18

2) Accounts receivable for which the provision for expected credit losses was withdrawn

according to groups

① In the group accounts receivable for which the provision for expected credit loss was made

according to aging groups

Aging

Ending balance

Carrying amount Bad debt provision

Withdrawal

proportion

(%)

Within 1 year 2367338511.72 48308043.50 2.04

1 to 2 years 398076018.92 39887371.88 10.02

2-3 years 70778770.88 16059703.12 22.69

3-4 years 2347695.43 1523184.79 64.88

Over 4 years 165513399.33 165513399.33 100.00

Total 3004054396.28 271291702.62 9.03

② In the group accounts receivable for which the provision for expected credit loss was made

according to project payment groups

Aging Ending balance

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Carrying amount Bad debt provision

Withdrawal

proportion

(%)

Within 1 year 260870171.57 13043508.53 5.00

1 to 2 years 205103789.51 20510378.97 10.00

2-3 years 88692660.55 26607798.16 30.00

3-4 years 78263538.63 39131769.32 50.00

Over 4 years 13626473.84 13494393.35 99.03

Total 646556634.10 112787848.33 17.44

(2) Accounts Receivable Listed by Aging

Aging Ending balance

Within 1 year 2630187591.95

1 to 2 years 1209886791.32

2-3 years 843078575.90

3-4 years 132412306.63

Over 4 years 219508657.96

Subtotal 5035073923.76

Less: provision for bad debts 1134176300.17

Total 3900897623.59

(3) Bad debt provision for accounts receivable during the Reporting Period

Category

Beginning

balance

Changed amount

Ending balance

Withdrawal

Collec

ted or

revers

Writ

e-off

verif

ied

Decrease for

other reasons

Bad debt

provision of

accounts

receivable

694025340.31 444069685.68 3918725.82 1134176300.17

Total 694025340.31 444069685.68 3918725.82 1134176300.17

(4) Accounts receivable actually verified during the Reporting Period

There were no accounts receivable actually verified during the Reporting Period

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

(5) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears

Party

The total amount of top five of account receivable of ending balance collected by arrears party

was RMB 1149826053.99 accounting for 22.84% of total closing balance of account receivable

the relevant ending balance of bad debt provision withdrawn was RMB421959487.71.

(6) There was no accounts receivable derecognized for transfer of financial assets.

(7) There is no amount of assets and liabilities formed due to the transfer of accounts receivable

and continued involvement in this year.

5. Accounts Receivable Financing

Item Ending balance Beginning balance

Notes Receivable 84057197.44 143174271.82

Total 84057197.44 143174271.82

Note: Accounts receivable financing is the bank acceptances of higher credit rating held by the

Company which aim at both collecting contract cash and selling the financial assets themselves.

6. Prepayments

(1) Age of advances to suppliers

Item

Ending balance Beginning balance

Amount Proportion

(%)

Amount Proportion

(%)

Within 1 year 1166762930.75 98.60 2059939470.32 99.39

1 to 2 years 14282024.18 1.21 8056998.90 0.39

2-3 years 733390.33 0.06 4074992.31 0.20

Over 3 years 1492198.15 0.13 479350.33 0.02

Total 1183270543.41 100.00 2072550811.86 100.00

Note: The amount of prepayments aged over one year at the end of the period is RMB

16507612.66 accounting for 1.40% of the total balance of prepayments of the Company and

consists mainly of payments for goods afloat or unsettled payments.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

(2) Advances to suppliers from top five prepaid parties classified based on the ending balance

The sum total of prepayments with top five ending balance collected as per the prepaid party is

RMB 656765428.07 and the proportion in total ending balance of payments is 55.50%.

7. Other receivables

Item Ending balance Beginning balance

Interest receivable 45109425.85 7807400.40

Dividends receivable 4947848.62 547848.62

Other Receivables 2095679366.13 1763828117.47

Total 2145736640.60 1772183366.49

7.1 Interest receivable

Item Ending balance Beginning balance

Fix time deposit 10235673.76 4807630.04

Entrusted loans 34303196.21 2623723.82

Factoring income 570555.88 376046.54

Total 45109425.85 7807400.40

7.2 Dividends receivable

Investee Ending balance Beginning balance

Chongqing Qingjia Electronic Co.

Ltd.

547848.62 547848.62

Binzhou Beihai Weiqiao Solid Waste

Treatment Co. Ltd.

4400000.00

Total 4947848.62 547848.62

7.3 Other receivables

(1) Classified by Account Nature

Item Ending balance Beginning balance

DepositDeposit Deposit 1642180460.58 1307226302.83

Intercourse funds among minority

shareholders in the business

consolidation not under the same

176427511.36 178968748.99

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

control and related parties

Energy-saving subsidies 152399342.00 152402680.00

Disposal of non-current assets 132331700.00 147256700.00

Others 638804307.66 376824887.60

Total 2742143321.60 2162679319.42

Note: The increase in other receivables was mainly due to the increase in the company's prepaid

deposits security deposits and deposits

(2) Withdrawal of Bad Debt Provision

Bad debt provision

Phase I Phase II Phase III

Total

Expected

credit losses

over the next

12 months

Expected

credit losses

for the entire

duration (no

credit

impairment)

Expected credit

losses for the

entire duration

(with credit

impairment)

Balance as at 1 January

2020

15229049.09 25449941.31 358172211.55 398851201.95

In the Reporting Period

Carrying amount of other

receivables on 1 January

2020:

——Transferred to the

Phase II

-5051195.62 5051195.62

——Transferred to the

Phase III

-610.58 -4636617.84 4637228.42

——Transferred back to

the Phase II

——Transferred back to

the Phase I

Provision made in the

current year

9478513.76 34375867.10 214401463.63 258255844.49

Amount transferred back

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Bad debt provision

Phase I Phase II Phase III

Total

Expected

credit losses

over the next

12 months

Expected

credit losses

for the entire

duration (no

credit

impairment)

Expected credit

losses for the

entire duration

(with credit

impairment)

in the current year

Write-off

Verification 153528.90 13396856.82 13550385.72

Other changes 2907294.75 2907294.75

Balance as at December

31 2020

22563051.40 60086857.29 563814046.78 646463955.47

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 1 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 1 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.

(3) Withdrawing bad debt provision for other receivables according to group

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Propo

rtion

(%)

Amount

With

draw

propo

rtion

Other receivables

with significant

individual amount

and make

1177068758.61 42.93 563814046.78 47.90 613254711.83

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Propo

rtion

(%)

Amount

With

draw

propo

rtion

independent

provision for

expected credit loss

Other receivables

withdrawn bad debt

provision according

to credit risks

characteristics

Aging group 1327676325.32 48.42 73662861.99 5.55 1254013463.33

Low-risk group 237398237.67 8.66 8987046.70 3.79 228411190.97

Subtotal of groups 1565074562.99 57.07 82649908.69 5.28 1482424654.30

Total 2742143321.60 100.00 646463955.47 23.58 2095679366.13

(Continued)

Category

Beginning balance

Carrying amount Bad debt provision

Carrying value

Amount

Propo

rtion

(%)

Amount

Withdr

awal

propor

tion

Other receivables

with significant

individual amount

and make

independent

provision for

expected credit

loss

1093025247.42 50.54 358172211.55 32.77 734853035.87

Other receivables

withdrawn bad

debt provision

according to credit

risks

characteristics

Aging group 598266705.02 27.66 30392763.59 5.08 567873941.43

Low-risk group 471387366.98 21.80 10286226.81 2.18 461101140.17

Subtotal of groups 1069654072.00 49.46 40678990.40 3.80 1028975081.60

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Total 2162679319.42 100.00 398851201.95 18.44 1763828117.47

(4) Listed by aging

Aging Ending balance

Within 1 year 1195007839.77

1 to 2 years 1242762406.26

2-3 years 88143690.71

3-4 years 3044773.36

4-5 years 5250275.90

Over 5 years 207934335.60

Subtotal 2742143321.60

Less: bad debt provision 646463955.47

Total 2095679366.13

(5) Bad Debt Provision for Other Receivables

The amount of bad debt provision for this year was RMB258255844.49 which was mainly due

to the abnormal operation of the supplier of the subsidiary Konka Huanjia which could not be

delivered normally or refunded the prepaid deposit in the short term. Withdrawal of expected

credit losses; the amount increased for reclassification was RMB2958848.86 which was

reduced by RMB32134.35 due to loss of control of the subsidiary reduced by RMB424.88 due to

combination and reduced by RMB18994.88 due to exchange rate changes. Other receivables

actually written off in the current period are RMB13550385.72.

(6) Top 5 Other Receivables in Ending Balance Collected according to the Arrears Party

The total amount of top five of account receivable of ending balance collected by arrears party

was RMB1073172589.0 accounting for 39.14% of total closing balance of other receivables

the relevant ending balance of bad debt provision withdrawn was RMB177635416.69.

(7) There were no other receivables derecognized due to transfer of financial assets during the

Reporting Period.

(8) There were no assets and liabilities formed by transferring other receivables and continuing to

be involved in this period.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

8. Inventories

(1) Category of Inventory

Item

Ending balance

Carrying amount

Inventory falling

price reserves /

impairment

provision of contract

performance costs

Carrying value

Raw materials 1239024415.74 28137287.12 1210887128.62

Consigned

processing

materials

7697008.23 7697008.23

Semi-finished

product

158870091.24 12636819.92 146233271.32

Inventory goods 3389343445.93 249362200.01 3139981245.92

Contract

performance

costs

16502023.32 16502023.32

Total 4811436984.46 290136307.05 4521300677.41

(Continued)

Item

Beginning balance

Carrying amount

Inventory falling

price reserves /

impairment

provision of contract

performance costs

Carrying value

Raw materials 1275228321.83 27122457.46 1248105864.37

Consigned

processing

materials

3117408.28 3117408.28

Semi-finished

product

85821719.87 12822030.37 72999689.50

Inventory

goods

4176189636.39 206509288.73 3969680347.66

Contract

performance

costs

13594131.07 13594131.07

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Beginning balance

Carrying amount

Inventory falling

price reserves /

impairment

provision of contract

performance costs

Carrying value

Total 5553951217.44 246453776.56 5307497440.88

(2) Inventory falling price reserves and impairment provision of contract performance costs

Item

Beginning

balance

Increased Decreased

Ending

balance Withdrawal Write-off

Decrease by

losing

controlling

right/other

reasons

Raw

materials

27122457.46 10779703.98 9757538.73 7335.59 28137287.12

Goods in

process

12822030.37 931646.86 1116857.31 12636819.92

Inventory

goods

206509288.73 161101275.37 117810721.29 437642.80 249362200.01

Total 246453776.56 172812626.21 128685117.33 444978.39 290136307.05

（3）Withdrawal Provision Basis of the Falling Price of the Inventory and the Reasons of the

Reversed or Write-off.Item

Specific basis of withdrawal of falling

price reserves of inventory

Reasons for write-off

Raw materials

The realizable net value was lower than the

carrying value

Sold or disposed in the current period

Semi-finished

product

The realizable net value was lower than the

carrying value

Sold or disposed in the current period

Inventory

goods

The realizable net value was lower than the

carrying value

Sold in the current period

9. Contractual assets

(1) Details of contractual assets

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance

Carrying amount Impairment

provision

Carrying value

Accounts receivable from

settled but conditional

payment projects

3002127112.18 180488971.89 2821638140.29

Unsettled advertising

payments

49375837.18 1007267.08 48368570.10

Total 3051502949.36 181496238.97 2870006710.39

(Continued)

Item

Beginning balance

Carrying amount Impairment

provision

Carrying value

Accounts receivable from

settled but conditional

payment projects

649732956.12 34414475.87 615318480.25

Unsettled advertising

payments

13522835.74 274500.00 13248335.74

Total 663255791.86 34688975.87 628566815.99

(2) Amount and reason of significant change in the book value of the contractual assets in the

current year

Item Amount changed Causes of the Change

Accounts receivable from settled

but conditional payment projects

2206319660.04 New engineering projects

Total 2206319660.04

(3) Making for impairment provision of contractual assets in the current year

Item

Provision made

in the current

year

Amount

transferred back

in the current

year

Write-of

f/Verifica

tion in

the

current

year

Reasons

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Provision made

in the current

year

Amount

transferred back

in the current

year

Write-of

f/Verifica

tion in

the

current

year

Reasons

Accounts receivable

from settled but

conditional payment

projects

146074496.02

The expected

credit loss is

greater than the

book value of the

current contract

asset impairment

provision

Unsettled

advertising

payments

732767.08

The expected

credit loss is

greater than the

book value of the

current contract

asset impairment

provision

Total 146807263.10

10. Current Portion of Non-current Assets

Item Ending balance Beginning balance Nature

Current portion of

debt investment

75000000.00 60000000.00

Entrusted loans for

associated enterprises

Current portion of

long-term receivable

37310158.82 48087016.22

Finance leasing

amount

Total 112310158.82 108087016.22

(1) Significant debt investment/other debt investment at the year end

Debt investment in

Ending balance

Par value

Coupon

rate

Actual

rate

Expiry Date

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Debt investment in

Ending balance

Par value

Coupon

rate

Actual

rate

Expiry Date

Yibin OCT Sanjiang Real estate

Co. Ltd.

35000000.00

5.70% 5.70%

2021/4/24

Yibin OCT Sanjiang Real estate

Co. Ltd.

40000000.00

5.70% 5.70%

2021/10/24

Total 75000000.00

(Continued)

Debt investment in

Beginning balance

Par value

Coupon

rate

Actual

rate

Expiry

Date

Yibin OCT Sanjiang Real estate

Co. Ltd.

60000000.00

5.70% 5.70%

2020/4/24

Total 60000000.00

11. Other Current Assets

Item Ending balance Beginning balance

Prepayments and deductible taxes and

refund of tax for export receivable

926643711.18 598034887.02

Principal of entrusted loans to joint ventures 826684400.00 1323295500.40

Temporary difference of input tax 148183307.23 134571124.94

Receivables from sales returns net of cost 7458293.85 11005603.81

Others 4176771.13 37311039.89

Total 1913146483.39 2104218156.06

12. Long-term Receivables

(1) List of Long-term Receivables

Item

Ending balance

Carrying amount

Bad debt

provision

Carrying value

Finance leasing amount 44609921.40 44609921.40

Of which: unrealized financing

income

2526836.56 2526836.56

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance

Carrying amount

Bad debt

provision

Carrying value

Cash deposits of long-term

receivables

41090400.00 41090400.00

Long-term receivables of

projects with franchise tights

351107041.45 351107041.45

Less: Current portion of

long-term receivable

See Note VI. 10 for details)

37310158.82 37310158.82

Total 399497204.03 399497204.03

(Continued)

Item

Beginning balance

Carrying amount

Bad debt

provision

Carrying value

Finance leasing amount 77783250.17 77783250.17

Of which: unrealized financing

income

9635891.82 9635891.82

Cash deposits of long-term

receivables

28951495.81 28951495.81

Long-term receivables of

projects with franchise tights

351861826.09 351861826.09

Less: Current portion of

long-term receivable

See Note VI. 10 for details)

48087016.22 48087016.22

Total 410509555.85 410509555.85

(2) List of Projects with Franchise Rights

Item Type Project scale Franchise rights

Date of

contract

Operatio

PPP Project

of water

supply and

sewage

Rushan

Silver Beach

PPP 452802100.00

Right of charge for

sewage disposal

July 2016

Partial

trial

operation

(3) Changes in Long-term Receivables of Projects with Franchise Rights

Item Initial invested Beginning Decreased Ending balance

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

amount balance Principal

recover

Other

decrease

PPP Project of water

supply and sewage

Rushan Silver Beach

351107041.45 351861826.09 754784.64 351107041.45

Total 351107041.45 351861826.09 754784.64 351107041.45

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

13. Long-term Equity Investment

Investee Beginning balance

Change in the Current Period

New investment

Investment

reduced

Cost method to

equity method

Gain/loss

recognized at

equity method

Adjustment

to other

comprehensiv

e income

Konka Ventures Development

(Shenzhen) Co. Ltd.

2354141.80 -103551.80

Nanjing Zhihuiguang Information

Technology Research Institute Co. Ltd.

1446968.41 126862.82

Feide Technology (Shenzhen) Co. Ltd. 14314621.68 -3642635.23

Shenzhen Kangyue Industrial Co. Ltd. 33856942.00 -709987.58

Foshan Pearl River Media Creative Park

Cultural Development Co. Ltd.

4900000.00

Shenzhen Konka Cross-Border

Technological Innovation Service Co.Ltd.

19020.00

Chengdu Konka Incubator Management

Co. Ltd.

254670.00

Dongguan Konka Smart Electronic

Technology Co. Ltd.

14700000.00 1472903.60

Puchuang Jiakang Technology Co. Ltd. 400000.00 999457.69

Guoguang Ruilian (Shenzhen) Network

Technology Co. Ltd.

192323.20 -140359.11

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance

Change in the Current Period

New investment

Investment

reduced

Cost method to

equity method

Gain/loss

recognized at

equity method

Adjustment

to other

comprehensiv

e income

Khorgos Yilingfang Information

Technology Co. Ltd.

1795.48

Chongqing Qingjia Electronic Co. Ltd. 19168701.08 -367047.24

Shenzhen Jielunte Technology Co. Ltd. 85665123.77 3522781.63

Panxu Intelligence Co. Ltd. 51084991.78 -1867032.63 1486737.16

Beijing Konka Jingyuan Technology Co.

Ltd.

763492.84 2798.13

Dongfang Jiahui (Zhuhai) Asset

Management Co. Ltd.

2978676.27 49295.23

Orient Konka no.1 (zhuhai) private

equity investment fund (limited

partnership)

310024401.51 76183020.50 100905698.76 50868896.59

Tongxiang Wuzhen Kunyu Equity

Investment Co. Ltd.

- 3500000.00 -

Shenzhen Xiaorui Technology Co. Ltd. 88000000.00 -9884863.61

Weihai Water Environmental Protection

Technology Co. Ltd.

2493211.96 33271.19

Weihai Yiheng Environmental

Technology Co. Ltd.

4668292.89 144337.36

Huoqiu Kangrun Kaitian Water 32434987.50 20000000.00 -

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance

Change in the Current Period

New investment

Investment

reduced

Cost method to

equity method

Gain/loss

recognized at

equity method

Adjustment

to other

comprehensiv

e income

Environmental Protection Co. Ltd.

Huarun Environmental Protection Water

Treatment Co. Ltd.

16018870.31 1297571.97

Binzhou Beihai Weiqiao Solid Waste

Treatment Co. Ltd.

133633089.95 63732938.30

Shandong Bishuiyuan Environmental

Technology Co. Ltd.

26174621.66 215816.32

Yunnan Hongkang Solid Waste Disposal

Utilization Co. Ltd.

2880000.00 -70224.87

Shandong Konka Zhijia Electrical

Appliances Co. Ltd.

4052660.23 -1904596.76

Henan Konka Zhijia Electrical

Appliances Co. Ltd.

709634.82 918000.00 -568497.48

Anhui Kaikaishijie E-commerce Co.

Ltd.

424850308.67 -5785276.34

Wanjun Technology (Kunshan) Co. Ltd. 182413766.51 -7209123.66

Kunshan Kangsheng Investment

Development Co. Ltd.

269673264.00 -

Chutianlong Co. Ltd. 636061636.70 23385170.32

Heilongjiang Longkang Zhijia 2380000.00 -1319274.21

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance

Change in the Current Period

New investment

Investment

reduced

Cost method to

equity method

Gain/loss

recognized at

equity method

Adjustment

to other

comprehensiv

e income

Technology Co. Ltd.Konka Green Konka Technology 77342419.36 -2081114.80

Shaanxi Silu Yunqi Smart Technology

Co. Ltd.

17202315.43 446980.38

Shenzhen Konka Information Network

Co. Ltd.

Shenzhen Zhongbing Konka Technology

Co. Ltd.

7273228.41 -5058921.08

Shenzhen Konka Smart Electrical

Appliance Technology Co. Ltd.

2882149.72 1091237.23

Zhuhai Jinsu Plastic Co. Ltd. 10166404.14 - 10549865.19 - 383461.05

Shenzhen Fusheng New Material Co.Ltd.

73600000.00 -1884086.91

Shenzhen Yaode Technology Co. Ltd. 229740245.47 -10382472.71

Wuhan Tianyuan Environmental

Protection Co. Ltd.

275577332.21 29076911.48

Shenzhen Konka Yishijie Commercial

Display Co. Ltd.

84273594.93 -2317736.66

Chuzhou Konka Technology Industry

Development Co. Ltd.

61029500.00 -11371102.98

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance

Change in the Current Period

New investment

Investment

reduced

Cost method to

equity method

Gain/loss

recognized at

equity method

Adjustment

to other

comprehensiv

e income

Chuzhou Kangjin Healthcare Industry

Development Co. Ltd.

117460056.00 662742.37

Haimen Kangjian Technology Industrial

Park Operation and Management Co.Ltd.

131273550.00 -10544214.33

Nanjing Kangxing Technology Industrial

Park Operation and Management Co.Ltd.

32305671.68 32305671.68 -

Chuzhou Kangxin Healthcare Industry

Development Co. Ltd.

187180000.00

Dongguan Konka Investment Co. Ltd. 563500000.00

Chongqing Konka Real Estate

Development Co. Ltd.

49500000.00

Chongqing Chengda Real Estate Co.

Ltd.

29205000.00

Yilifang (Hainan) Technology Co. Ltd. 53372944.09 5342734.88

Shenzhen Morsemi Technology Co. Ltd. 3000000.00 -276313.64

Total 3465541196.89 123481020.50 143761235.63 886031634.09 105369530.39 1486737.16

(Continued)

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Change in the Current Period

Ending balance

Closing balance

of impairment

provision Other equity changes

Cash dividend or

profit distribution

declared

Impairment

allowance

Others

Konka Ventures Development

(Shenzhen) Co. Ltd.

2250590.00

Nanjing Zhihuiguang Information

Technology Research Institute Co. Ltd.

1573831.23

Feide Technology (Shenzhen) Co. Ltd. 10671986.45

Shenzhen Kangyue Industrial Co. Ltd. 33146954.42

Foshan Pearl River Media Creative Park

Cultural Development Co. Ltd.

4900000.00

Shenzhen Konka Cross-Border

Technological Innovation Service Co.Ltd.

19020.00

Chengdu Konka Incubator Management

Co. Ltd.

254670.00

Dongguan Konka Smart Electronic

Technology Co. Ltd.

16172903.60

Puchuang Jiakang Technology Co. Ltd. 1399457.69

Guoguang Ruilian (Shenzhen) Network

Technology Co. Ltd.

51964.09 51964.09

Khorgos Yilingfang Information

Technology Co. Ltd.

1795.48

Chongqing Qingjia Electronic Co. Ltd. 18801653.84

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Change in the Current Period

Ending balance

Closing balance

of impairment

provision Other equity changes

Cash dividend or

profit distribution

declared

Impairment

allowance

Others

Shenzhen Jielunte Technology Co. Ltd. 89187905.40

Panxu Intelligence Co. Ltd. 50704696.31

Beijing Konka Jingyuan Technology Co.

Ltd.

766290.97

Dongfang Jiahui (Zhuhai) Asset

Management Co. Ltd.

3027971.50

Orient Konka no.1 (zhuhai) private

equity investment fund (limited

partnership)

336170619.84

Tongxiang Wuzhen Kunyu Equity

Investment Co. Ltd.

3500000.00

Shenzhen Xiaorui Technology Co. Ltd. 25007421.57 53107714.82 33684243.40

Weihai Water Environmental Protection

Technology Co. Ltd.

2526483.15

Weihai Yiheng Environmental

Technology Co. Ltd.

4812630.25

Huoqiu Kangrun Kaitian Water

Environmental Protection Co. Ltd.

52434987.50

Huarun Environmental Protection Water

Treatment Co. Ltd.

17316442.28

Binzhou Beihai Weiqiao Solid Waste 14700000.00 182666028.25

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Change in the Current Period

Ending balance

Closing balance

of impairment

provision Other equity changes

Cash dividend or

profit distribution

declared

Impairment

allowance

Others

Treatment Co. Ltd.Shandong Bishuiyuan Environmental

Technology Co. Ltd.

26390437.98

Yunnan Hongkang Solid Waste Disposal

Utilization Co. Ltd.

2809775.13

Shandong Konka Zhijia Electrical

Appliances Co. Ltd.

2148063.47

Henan Konka Zhijia Electrical

Appliances Co. Ltd.

1059137.34

Anhui Kaikaishijie E-commerce Co.

Ltd.

419065032.33

Wanjun Technology (Kunshan) Co. Ltd. 175204642.85

Kunshan Kangsheng Investment

Development Co. Ltd.

269673264.00

Chutianlong Co. Ltd. 9240000.00 650206807.02

Heilongjiang Longkang Zhijia

Technology Co. Ltd.

1060725.79 2470398.03

Konka Green Konka Technology 75261304.56

Shaanxi Silu Yunqi Smart Technology

Co. Ltd.

17649295.81

Shenzhen Konka Information Network 12660222.73

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Change in the Current Period

Ending balance

Closing balance

of impairment

provision Other equity changes

Cash dividend or

profit distribution

declared

Impairment

allowance

Others

Co. Ltd.

Shenzhen Zhongbing Konka Technology

Co. Ltd.

2214307.33

Shenzhen Konka Smart Electrical

Appliance Technology Co. Ltd.

3973386.95

Zhuhai Jinsu Plastic Co. Ltd.Shenzhen Fusheng New Material Co.Ltd.

13315913.09 58400000.00 18536771.07

Shenzhen Yaode Technology Co. Ltd. 219357772.76

Wuhan Tianyuan Environmental

Protection Co. Ltd.

304654243.69

Shenzhen Konka Yishijie Commercial

Display Co. Ltd.

81955858.27

Chuzhou Konka Technology Industry

Development Co. Ltd.

49658397.02

Chuzhou Kangjin Healthcare Industry

Development Co. Ltd.

118122798.37

Haimen Kangjian Technology Industrial

Park Operation and Management Co.Ltd.

120729335.67

Nanjing Kangxing Technology Industrial

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Change in the Current Period

Ending balance

Closing balance

of impairment

provision Other equity changes

Cash dividend or

profit distribution

declared

Impairment

allowance

Others

Park Operation and Management Co.Ltd.

Chuzhou Kangxin Healthcare Industry

Development Co. Ltd.

187180000.00

Dongguan Konka Investment Co. Ltd. 563500000.00

Chongqing Konka Real Estate

Development Co. Ltd.

49500000.00

Chongqing Chengda Real Estate Co.

Ltd.

29205000.00

Yilifang (Hainan) Technology Co. Ltd. 58715678.97

Shenzhen Morsemi Technology Co. Ltd. 2723686.36

Total 23940000.00 38375298.75 4375833584.65 67403599.32

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

14. Other Equity Instrument Investment

(1) Investment in non-trading equity instruments

Item Ending balance

Beginning

balance

Shenzhen Tianyilian Science & Technology Co.Ltd.Shenzhen Adopt Network Co. Ltd.

Beijing Konka Technology Co. Ltd. 1200000.00

AVO 5901121.80 6000000.00

Shaoyang Haishang Ecological Agricultural

Technology Co. Ltd.

1501956.00 1501956.00

Feihong Electronics Co. Ltd.

ZAEFI

Shenzhen Chuangce Investment Development Co.Ltd.Shanlian Information Technology Engineering

Center

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 Center of

Digital TV Co. Ltd.

2400000.00 2400000.00

Bohu UHD 5000001.00

Total 25343293.16 21642170.36

(2) Non-transactional Equity Instrument Investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Dividend

income

recognized

in the

current

period

Accum

ulative

gain

Accumulative

loss

Amount of

retained

earnings

transferred

from other

comprehensive

income

Reason for

being

designated to be

measured at fair

value of which

recorded in

other

comprehensive

income

Reason for

retained

earnings

transferred

from other

comprehen

sive income

Shenzhen

Tianyilian Science

& Technology Co.Ltd.

4800000.00

Long-term

holding based on

strategic purpose

Shenzhen Adopt

Network Co. Ltd.

5750000.00

Long-term

holding based on

strategic purpose

Beijing Konka

Technology Co.Ltd.

-1700000.00

Long-term

holding based on

strategic purpose

Sales of

equity

AVO 98878.20

Long-term

holding based on

strategic purpose

Shaoyang Haishang

Ecological

Agricultural

Technology Co.Ltd.Long-term

holding based on

strategic purpose

Feihong Electronics

Co. Ltd.

1300000.00

Long-term

holding based on

strategic purpose

ZAEFI 100000.00

Long-term

holding based on

strategic purpose

Shenzhen

Chuangce

485000.00

Long-term

holding based on

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Dividend

income

recognized

in the

current

period

Accum

ulative

gain

Accumulative

loss

Amount of

retained

earnings

transferred

from other

comprehensive

income

Reason for

being

designated to be

measured at fair

value of which

recorded in

other

comprehensive

income

Reason for

retained

earnings

transferred

from other

comprehen

sive income

Investment

Development Co.

Ltd.strategic purpose

Shanlian

Information

Technology

Engineering Center

3139190.80

Long-term

holding based on

strategic purpose

Shenzhen CIU

Science &

Technology Co.Ltd.

200000.00

Long-term

holding based on

strategic purpose

Shenzhen Digital

TV National

Engineering

Laboratory Co.Ltd.

1273594.84

Long-term

holding based on

strategic purpose

Shanghai National

Engineering

Research Center of

Digital TV Co. Ltd.

Long-term

holding based on

strategic purpose

Bohu UHD

Long-term

holding based on

strategic purpose

Total 17146663.84 -1700000.00

15. Other Non-current Financial Assets

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Ending balance Beginning balance

China Asset Management-Jiayi Overseas Designated Plan 203000000.00 203000000.00

Hunan Wanrong Technology Co. Ltd. 47230000.00 47230000.00

Yibin OCT Sanjiang Property Co. Ltd. 200000000.00 200000000.00

Yili Ecological Restoration Co. Ltd. 90000000.00 90000000.00

Kunshan Xinjia Emerging Industry Equity Investment Fund Partnership

(Limited Partnership)

13028268.90

Shenzhen Kanghong Dongsheng Investment Partnership (Limited

Partnership)

17754800.00

Tongxiang Wuzhen Jiayu Digital Economy Industry Equity Investment

Partnership (Limited Partnership)

40000000.00

Yibin Kanghui Electronic Information Industry Equity Investment

Partnership (Limited Partnership)

4000000.00

Chuzhou Jiachen Information Technology Consulting Service Partnership

(Limited Partnership)

49200000.00

Yancheng Kangyan Information Industry Investment Partnership (Limited

Partnership)

1050000.00

Subtotal of equity investments 665263068.90 540230000.00

Chuzhou Huike Smart Household Appliances Industry Investment

Partnership (Limited Partnership)

1049891727.86 1049891727.83

Ningbo Yuanqing No. 9 Investment Partnership 98000000.00 98000000.00

Shenzhen Beihu Technology Partnership (Limited Partnership) 65000000.00 65000000.00

Subtotal of debt investments 1212891727.86 1212891727.83

Total 1878154796.76 1753121727.83

16. Investment Property

(1) Investment properties measured at cost

Item

Plant & buildings and land use

right

I. Original carrying value

1. Beginning balance 447413230.79

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Plant & buildings and land use

right

2. Increase in the current year 238325000.85

(1) Outsourcing

(2) Fixed assets\Construction in progress\Transfer of

intangible assets

238325000.85

3. Decrease in the current year 85175552.93

(1) Disposal 1739906.85

(2) Other transfer out 83435646.08

4. Ending balance 600562678.71

II. The accumulative depreciation and accumulative

amortization

1. Beginning balance 47215856.72

2. Increase in the current year 20751174.80

(1) Provision or amortization 20751174.80

3. Decrease in the current year 5990021.10

(1) Disposal 342544.16

(2) Other transfer out 5647476.94

4. Ending balance 61977010.42

III. Depreciation reserves

1. Beginning balance

2. Increase in the current year

(1) Withdrawal

3. Decrease in the current year

(1) Disposal

(2) Other transfer out

4. Ending balance

IV. Carrying value

1. Ending carrying value 538585668.29

2. Beginning carrying value 400197374.07

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Note: The increase of investment real estate in the current period is mainly due to the completion

of Konka Yibin Industrial Park and Konka Yantai Industrial Park.

(2) Investment properties measured at fair value

There were no investment properties measured at fair value of the Company.

(3) Investment properties in the process of title certificate handling

Item Carrying value Reason

Konka Yibin Industrial Park

153966037.13

Incorporation and under

processing

Konka Yantai Industrial Park

37976833.18

Incorporation and under

processing

Total 191942870.31

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

17. Fixed assets

Item Ending carrying value Beginning carrying value

Fixed Assets 3178642017.84 2561254191.55

Fixed assets pending for disposal

Total 3178642017.84 2561254191.55

(1) List of Fixed Assets

Item

Houses and

buildings

Mechanical

equipment

Electronic

equipment

Transportation

equipment

Other equipment Total

I. Original carrying

value

1. Beginning balance 2035218106.99 2017148345.41 184064655.85 58063867.63 241613861.33 4536108837.21

2. Increased amount of

the period

278011579.92 785892811.65 30295330.99 10259226.45 67290896.84 1171749845.85

(1) Purchase 46512597.89 158307301.21 29379778.67 10259226.45 61819125.07 306278029.29

(2) Transfer of

construction in progress

155209187.40 627585510.44 915552.32 5471771.77 789182021.93

(3) Increase for business 76289794.63 76289794.63

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Houses and

buildings

Mechanical

equipment

Electronic

equipment

Transportation

equipment

Other equipment Total

combination

(4) Increase for other

reasons

428097969.36 111846244.51 7433057.11 3380172.25 10854225.10 561611668.33

3. Decreased amount of

the period

117153018.44 111846244.51 7081833.81 3380172.25 10854225.10 250315494.11

(1) Disposal or Scrap 310944950.92 351223.30 311296174.22

(2) Decrease for loss of

controlling right

1885131717.55 2691194912.55 206926929.73 64942921.83 298050533.07 5146247014.73

(3) Decrease for other

reasons

4. Ending balance 633844572.99 939156102.95 139979797.13 39874403.17 153386011.72 1906240887.96

II. Accumulative

depreciation

73340031.13 193852179.42 13928212.30 6651909.48 14469197.25 302241529.58

1. Beginning balance 69498866.64 193852179.42 13928212.30 6651909.48 14469197.25 298400365.09

2. Increased amount of

the period

3841164.49 3841164.49

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Houses and

buildings

Mechanical

equipment

Electronic

equipment

Transportation

equipment

Other equipment Total

(1) Withdrawal 205462260.22 88701873.57 5889810.99 2956257.05 7190858.00 310201059.83

(2) Increase for business

combination

60421028.86 88701873.57 5670143.24 2956257.05 7150911.79 164900214.51

(3) Increase for other

reasons

145041231.36 219667.75 39946.21 145300845.32

3. Decreased amount of

the period

501722343.90 1044306408.80 148018198.44 43570055.60 160664350.97 1898281357.71

(1) Disposal or Scrap

(2) Decrease for loss of

controlling right

1247805.91 64023905.57 1156577.28 820215.24 1365253.70 68613757.70

(3) Decrease for other

reasons

627051.21 71982.74 248453.22 947487.17

4. Ending balance 627051.21 71982.74 248453.22 947487.17

III. Depreciation

reserves

210272.52 7330.00 20003.17 237605.69

1. Beginning balance 210272.52 7330.00 20003.17 237605.69

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Houses and

buildings

Mechanical

equipment

Electronic

equipment

Transportation

equipment

Other equipment Total

2. Increased amount of

the period

1247805.91 64440684.26 1221230.02 820215.24 1593703.75 69323639.18

(1) Withdrawal

(2) Increase for business

combination

1382161567.74 1582447819.49 57687501.27 20552650.99 135792478.35 3178642017.84

3. Decreased amount of

the period

1400125728.09 1013968336.89 42928281.44 17369249.22 86862595.91 2561254191.55

(1) Disposal or Scrap

(2) Decrease for loss of

controlling right

2035218106.99 2017148345.41 184064655.85 58063867.63 241613861.33 4536108837.21

4. Ending balance 278011579.92 785892811.65 30295330.99 10259226.45 67290896.84 1171749845.85

IV. Carrying value 46512597.89 158307301.21 29379778.67 10259226.45 61819125.07 306278029.29

1. Ending carrying value 155209187.40 627585510.44 915552.32 5471771.77 789182021.93

2. Beginning carrying

value

76289794.63 76289794.63

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

(2) List of Temporarily Idle Fixed Assets

Item

Original

carrying value

Accumulative

depreciation

Impairment

provision

Carrying value

Mechanical

equipment

3673206.93 1657315.38 1933845.35 82046.20

Electronic

equipment

1492298.49 1083615.47 408683.02

Other equipment 866004.14 738638.36 26675.22 100690.56

Total 6031509.56 3479569.21 1960520.57 591419.78

(3) Fixed Assets Leased in from Financing Lease

Item

Original carrying

value

Accumulative

depreciation

Impairm

ent

provision

Carrying value

Buildings 104725378.00 10310322.92 94415055.08

Mechanical

equipment

747492485.33 373493777.70 373998707.63

Transportation

equipment

10078398.20 8363765.16 1714633.04

Electronic

equipment

46006058.20 39652392.14 6353666.06

Other equipment 55613076.42 42553960.39 13059116.03

Total 963915396.15 474374218.31 489541177.84

(4) Fixed Assets Leased out from Operation Lease

Item Ending carrying value

Mechanical equipment 17281963.09

Transportation vehicles and electronic equipment 173606.48

Total 17455569.57

(5) Details of Fixed Assets Failed to Accomplish Certification of Property

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Original

carrying value

Accumulative

depreciation

Impa

irme

provi

sion

Net carrying

value

Reason

Konka Yibin

Industrial

Park

122091094.58 122091094.58

New

construction

with pending

certificate

Yikang

Building

property

76610752.33 36904816.64 39705935.69

Historical

reasons

Jingyuan

Building

property

20018497.00 9545350.92 10473146.08

Historical

reasons

Longzhimeng

Pangjiang

Street

Property in

Dadong

District

Shenyang

6072572.34 1019177.51 5053394.83

Under

processing

Purification

tank for liquid

waste of

XingDa

HongYe

2653000.00 1482363.75 1170636.25

Under

processing

Total 105354821.67 48951708.82 56403112.85

(6) Fixed Assets with Restricted Ownership or Use Right

Item

Ending carrying

value

Reasons

Housing and buildings of Anhui

Tongchuang

154681545.21 Mortgage loans

Machinery equipment of Jiangxi

Konka

141962217.67 Finance lease mortgage

Machinery equipment of Xinfeng

Microcrystalline

109794046.99 Finance lease mortgage

Housing and buildings of Frestec 94415055.08 Mortgage loans

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

245

Refrigeration

Machinery equipment of Nano

Crystallized Glass

80230031.99 Finance lease mortgage

Buildings of Konka Group 72448630.14 As collateral for loan

Housing and buildings of

XingDa HongYe

40867928.18 Finance lease mortgage

Electronic equipment

transportation equipment and

other equipment of Konka Group

21626382.29 Finance lease mortgage

Machinery equipment of

Dongguan Konka and other

equipment

15650423.83 Finance lease mortgage

Machinery equipment of Xingda

Hongye

14753054.76 Finance lease mortgage

Machinery equipment of Boluo

Konka Precision

11109965.23 Finance lease mortgage

Factories of Boluo Konka 7526113.83 Mortgage loans

Buildings of Jiangxi Konka 3676370.92

As collateral for former shareholder’s

guarantee

Total 768741766.12

18. Construction in Progress

Item Ending balance Beginning balance

Construction in Progress 9236643931.68 4291544368.52

Total 9236643931.68 4291544368.52

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

18.1 Construction in progress

(1) List of Construction in Progress

Item

Ending balance Beginning balance

Carrying amount Imp

air

men

prov

ision

Carrying value Carrying amount Impa

irme

provi

sion

Carrying value

Comprehensive improvement engineering project of

drainage basins in the city of Donggang

878298840.85 878298840.85 715838346.63 715838346.63

Central City Comprehensive accelerated programs

in Economic and Technological Development Zone

of Binhai Weifang

854403424.70 854403424.70 329745585.38 329745585.38

Sewage treatment and water environment project in

Ankang County

736291181.05 736291181.05

PPP Project of Lushan Shahe Ecological

Rehabilitation and Improvement (Phase I)

712003094.27 712003094.27 511792398.90 511792398.90

PPP Project of Funan Sewage Treatment 698546462.73 698546462.73 592295248.19 592295248.19

Comprehensive water environment improvement

project in Mengcheng County Anhui Province

693071428.99 693071428.99

Water supply engineering project in Mazongshan

Town Subei Mongol Autonomous County Gansu

Province

651327229.42 651327229.42 571112712.15 571112712.15

Integrated PPP Project of Huangpi Sewage 566856746.38 566856746.38 385214225.65 385214225.65

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance Beginning balance

Carrying amount Imp

air

men

prov

ision

Carrying value Carrying amount Impa

irme

provi

sion

Carrying value

Treatment

Ankang Smart Plant 549848298.86 549848298.86 143320357.80 143320357.80

The second line of Jiangxi Nano Crystallized Glass 335893840.77 335893840.77 336485492.44 336485492.44

Dayi Project 317578212.72 317578212.72 79258722.98 79258722.98

Phase I of ecological restoration and protection of

Danhe River Basin in Gaoping City

315363263.81 315363263.81

Water environment improvement project in

downtown Chongzhou

294709246.41 294709246.41

Tongchuan Project 265143141.30 265143141.30 99720949.28 99720949.28

The second sewage plant of Laizhou 188185801.03 188185801.03 90971785.34 90971785.34

Construction of Suining Electronic Industrial Park

Workshops

185205457.46 185205457.46 49129811.44 49129811.44

Franchise project of disposal of kitchen waste in

Gaoling Xi'an

170314313.43 170314313.43

Water supply and water resources development

project in Changning

159947876.21 159947876.21

R&D equipment construction project of Chongqing

Optoelectronic Research Institute

129766743.81 129766743.81

Phase II of Rural Residential Environment 129657635.39 129657635.39

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance Beginning balance

Carrying amount Imp

air

men

prov

ision

Carrying value Carrying amount Impa

irme

provi

sion

Carrying value

Improvement and Reconstruction Project (domestic

sewage treatment) in Qinhan New Town

Guangming Project 122764816.91 122764816.91 39753607.36 39753607.36

Yibin Konka High-Tech Industrial Park 86183539.65 86183539.65

Xinfeng Line 1 modification project 85768083.75 85768083.75

Other projects 281466875.18 281466875.18 174953501.58 174953501.58

Total 9236643931.68 9236643931.68 4291544368.52 4291544368.52

(2) Changes of Significant Construction in Progress

Name of item Beginning balance Increased

Decreased

Ending balance Transferred to

long-term assets

Other

decrease

Comprehensive improvement engineering

project of drainage basins in the city of

Donggang

715838346.63 162460494.22 878298840.85

Central City Comprehensive accelerated

programs in Economic and Technological

Development Zone of Binhai Weifang

329745585.38 524657839.32 854403424.70

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of item Beginning balance Increased

Decreased

Ending balance Transferred to

long-term assets

Other

decrease

Sewage treatment and water environment

project in Ankang County

736291181.05 736291181.05

PPP Project of Lushan Shahe Ecological

Rehabilitation and Improvement (Phase I)

511792398.90 200210695.37 712003094.27

PPP Project of Funan Sewage Treatment 592295248.19 106251214.54 698546462.73

Comprehensive water environment

improvement project in Mengcheng County

Anhui Province

693071428.99 693071428.99

Water supply engineering project in

Mazongshan Town Subei Mongol Autonomous

County Gansu Province

571112712.15 80214517.27 651327229.42

Integrated PPP Project of Huangpi Sewage

Treatment

385214225.65 181642520.73 566856746.38

Ankang Smart Plant 143320357.80 406527941.06 549848298.86

The second line of Jiangxi Nano Crystallized

Glass

336485492.44 591651.67 335893840.77

Dayi Project 79258722.98 238319489.74 317578212.72

Phase I of ecological restoration and protection

of Danhe River Basin in Gaoping City

315363263.81 315363263.81

Water environment improvement project in

downtown Chongzhou

294709246.41 294709246.41

Tongchuan Project 99720949.28 165422192.02 265143141.30

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of item Beginning balance Increased

Decreased

Ending balance Transferred to

long-term assets

Other

decrease

The second sewage plant of Laizhou 90971785.34 97214015.69 188185801.03

Construction of Suining Electronic Industrial

Park Workshops

49129811.44 138669460.06 2593814.04 185205457.46

Franchise project of disposal of kitchen waste

in Gaoling Xi'an

170314313.43 170314313.43

Water supply and water resources development

project in Changning

159947876.21 159947876.21

R&D equipment construction project of

Chongqing Optoelectronic Research Institute

543924950.08 414158206.27 129766743.81

Phase II of Rural Residential Environment

Improvement and Reconstruction Project

(domestic sewage treatment) in Qinhan New

Town

129657635.39 129657635.39

Guangming Project 39753607.36 83780590.74 769381.19 122764816.91

Yibin Konka High-Tech Industrial Park 86183539.65 189873592.06 276057131.71

Xinfeng Line 1 modification project 85768083.75 8847307.77 94615391.52

Other projects 511438994.02 375768538.94 265950228.28 3304937.06 617360715.95

Total 4291544368.52 6003140304.90 1054144153.01 3896588.73 9236643931.68

(Continued)

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of item

Estimate

number

(RMB10

million)

Proportion

estimated of the

project

accumulative

input (%)

Engineerin

Schedule

(%)

Accumulative

amount of

capitalized

interests

Of which: the

amount of the

capitalized

interests of the

period

Capitalization

rate of the

interests of

the period

(%)

Capital resources

Comprehensive improvement

engineering project of drainage

basins in the city of Donggang

12.99 67.61 67.61 69458190.80 36309241.28 6.05

Self-owned fund and bank

financing

Central City Comprehensive

accelerated programs in Economic

and Technological Development

Zone of Binhai Weifang

16.50 51.78 51.78 22075641.66 16389971.72 5.36

Self-owned fund and bank

financing

Sewage treatment and water

environment project in Ankang

County

22.41 32.86 32.86 Self-owned fund

PPP Project of Lushan Shahe

Ecological Rehabilitation and

Improvement (Phase I)

12.68 56.16 56.16 Self-owned fund

PPP Project of Funan Sewage

Treatment

9.72 71.84 71.84 25861378.47 21938159.72 4.82

Self-owned fund and bank

financing

Comprehensive water environment

improvement project in

Mengcheng County Anhui

Province

15.93 43.49 43.49 Self-owned fund

Water supply engineering project 9.70 67.14 67.14 20628731.25 20628731.25 5.05 Self-owned fund and bank

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of item

Estimate

number

(RMB10

million)

Proportion

estimated of the

project

accumulative

input (%)

Engineerin

Schedule

(%)

Accumulative

amount of

capitalized

interests

Of which: the

amount of the

capitalized

interests of the

period

Capitalization

rate of the

interests of

the period

(%)

Capital resources

in Mazongshan Town Subei

Mongol Autonomous County

Gansu Province

financing

Integrated PPP Project of Huangpi

Sewage Treatment

7.38 76.77 76.77 14431587.50 14431587.50 4.80

Self-owned fund and bank

financing

Ankang Smart Plant 9.3 59.12 59.12 Self-owned fund

Dayi Project

3.92 80.99 80.99 6075035.28 6075035.28 7.91

Self-owned fund and bank

financing

Phase I of ecological restoration

and protection of Danhe River

Basin in Gaoping City

8.93 35.32 35.32 Self-owned fund

Water environment improvement

project in downtown Chongzhou

8.82 33.40 33.40 Self-owned fund

Tongchuan Project 3.93 67.46 67.46 Self-owned fund

The second sewage plant of

Laizhou

2.56 73.41 73.41 5288393.57 5288393.57 5.30 Self-owned fund

Construction of Suining Electronic

Industrial Park Workshops

7.04 31.09 31.09 Self-owned fund

Franchise project of disposal of 2.46 69.32 69.32 Self-owned fund

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of item

Estimate

number

(RMB10

million)

Proportion

estimated of the

project

accumulative

input (%)

Engineerin

Schedule

(%)

Accumulative

amount of

capitalized

interests

Of which: the

amount of the

capitalized

interests of the

period

Capitalization

rate of the

interests of

the period

(%)

Capital resources

kitchen waste in Gaoling Xi'an

Water supply and water resources

development project in Changning

5.57 28.71 28.71 Self-owned fund

R&D equipment construction

project of Chongqing

Optoelectronic Research Institute

7.08 71.65 71.65 Self-owned fund

Phase II of Rural Residential

Environment Improvement and

Reconstruction Project (domestic

sewage treatment) in Qinhan New

Town

7.99 16.23 16.23 Self-owned fund

Guangming Project 5.33 23.19 23.19 1318597.14 1318597.14 1.57

Self-owned fund and

project financing

Yibin Konka High-Tech Industrial

Park

3.50 100.00 100.00 Self-owned fund

Xinfeng Line 1 modification

project

0.2 44.24 44.24

Bank financing and

finance lease

Other projects 39229802.86

Total 236617352.69 122379717.46

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

19. Intangible Assets

(1) List of intangible assets

Item Land use right

Intellectual property

Total

Trademark right

Patent and

know-how

Franchise rights Right to use Subtotal

I. Original carrying value

1. Beginning balance 1026423067.19 75482617.43 102532417.78 106571344.10 99690005.24 384276384.55 1410699451.74

2. Increased amount of the

period

191543920.63 5000.00 18655803.18 18660803.18 210204723.81

(1) Purchase 184398069.18 5000.00 7219776.82 7224776.82 191622846.00

(2) Transfer of construction

in progress

9624190.74 9624190.74 9624190.74

(3) Internal R&D 1811835.62 1811835.62 1811835.62

(4) Transfer from

investment property

7145851.45 7145851.45

3. Decreased amount of the

period

171140223.69 171140223.69

(1) Disposal 73038856.61 73038856.61

(2) Decrease for loss of

controlling right

45779912.32 45779912.32

(3) Decrease in transfer-in

of investment real estate

52321454.76 52321454.76

4. Ending balance 1046826764.13 75487617.43 102532417.78 106571344.10 118345808.42 402937187.73 1449763951.86

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Land use right

Intellectual property

Total

Trademark right

Patent and

know-how

Franchise rights Right to use Subtotal

II. Accumulated

amortization

- -

1. Beginning balance 78757617.42 5272221.47 56417825.66 11105062.50 42973928.86 115769038.49 194526655.91

2. Increased amount of the

period

36970965.44 231.48 26413690.21 4442025.00 12810539.69 43666486.38 80230695.34

(1) Withdrawal 35164652.99 231.48 26413690.21 4442025.00 12810539.69 43666486.38 78424382.89

(2) Other increases 1806312.45 1806312.45

3. Decreased amount of the

period

17085483.51 17085483.51

(1) Disposal 7524347.17 7524347.17

(2) Decrease for loss of

controlling right

1655203.71 1655203.71

(3) Decrease in transfer-in

of investment real estate

7905932.63 7905932.63

4. Ending balance 98643099.35 5272452.95 82831515.87 15547087.50 55377712.07 159028768.39 257671867.74

III. Depreciation reserves

1. Beginning balance 2901082.61 2901082.61 2901082.61

2. Increased amount of the

period

(1) Withdrawal

(2) Increase for business

combination

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Land use right

Intellectual property

Total

Trademark right

Patent and

know-how

Franchise rights Right to use Subtotal

3. Decreased amount of the

period

(1) Disposal

(2) Decrease for loss of

controlling right

4. Ending balance 2901082.61 2901082.61 2901082.61

IV. Carrying value

1. Ending carrying value 948183664.78 70215164.48 16799819.30 91024256.60 62968096.35 241007336.73 1189191001.51

2. Beginning carrying value 947665449.77 70210395.96 43213509.51 95466281.60 56716076.38 265606263.45 1213271713.22

The ratio of intangible assets formed through internal R&D to the balance of intangible assets by the end of this year was 0.15%.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

(2) Intangible assets leased through financial leasing

Item Original book

value

Accumulated

amortization

Provision for

impairment

Carrying value

land use right 74399250.00 4710869.54 69688380.46

Patents and

know-how

28000000.00 16000000.00 12000000.00

Total 102399250.00 20710869.54 81688380.46

(3) Land Use Right with Certificate of Title Uncompleted

Item Carrying value Reason

Land usage right of the

subsidiary Nanocrystalline

5236420.37 Under processing

Total 5236420.37

(4) Significant Intangible Assets

Item Ending carrying value

Remaining amortization

period

Land usage right of Fenggang Konka

Intelligent Industrial Park

198040434.67 48.67

Frestec Zhijia land use right 96024621.61 49.75

Franchise rights of sewage treatment in

Laizhou

95503537.51 21.50

Land usage right of Chongqing Konka 61789103.75 48.67

Land usage right of Frestec 69688380.46 35.75

Land usage right of Huanjia (Henan) 65894816.06 48.50

Land usage right of Anhui Konka 2 # land 55952866.67 47.83

Land usage right of Anhui Konka 3# land 19212162.54 47.92

Total 662105923.27

(5) Intangible Assets with restricted ownership or using right

Item Ending carrying value Reasons

Land usage right of Frestec 69688380.46 As collateral for

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Ending carrying value Reasons

loan

Land usage right of Anhui Konka 2 #

land

55952866.67

As collateral for

loan

Land use right of Anhui Tongchuang 18920247.71

As collateral for

loan

Land usage right of XingDa HongYe 14517613.34

As collateral for

loan

Yikang technology patents and

know-how

12000000.00

Finance lease

mortgage

Land usage right of Jiangxi Konka 10518420.58

Original

shareholder

guarantee mortgage

Land use right of Kangjia in Yibin 5705407.85

As collateral for

loan

Land use right of Konka Guangming 5339539.00

As collateral for

loan

Land use right of Boluo Konka 1113084.13

As collateral for

loan

Total 193755559.74

20. Development expenditures

Item

Begin

ning

balanc

Increased Decreased Endin

balan

Expenditure

of internal

development

Amount

recognized as

intangible assets

Transferred

into current

profit or loss

AIOT scene audio

system based on NLP

algorithm

- 1811835.62 1811835.62 - -

Total 1811835.62 1811835.62 - -

Note: In November 2020 the AIOT voice system based on NLP algorithm developed by the

Company reached the serviceable conditions and was accepted and moved from development

expense to intangible assets as it met the conditions to be reported as intangible assets.

21. Goodwill

(1) Original Carrying Value of Goodwill

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of the

investees

Beginning balance

Increased Decreased

Ending balance Formed

from the

Others Dispose

Othe

Anhui Konka 3597657.15

359765

7.15

Econ

Technology

467825151.34 467825151.34

Jiangxi Konka 340111933.01 340111933.01

XingDa

HongYe

44156682.25 44156682.25

Total 855691423.75

359765

7.15

852093766.60

(2) Provisions for Goodwill Impairment

Name of

the

investees

Beginning

balance

Increased Decreased

Ending balance

Withdrawal Others Dispose Others

Anhui

Konka

3597657.15

359765

7.15

Econ

Technology

Jiangxi

Konka

76431127.34 77906818.95 154337946.29

XingDa

HongYe

21959947.14 21959947.14

Total 76431127.34 103464423.24

359765

7.15

176297893.43

(3) Relevant information on the asset group or combination of asset groups where goodwill is

located

This year the company hired an appraisal agency to assess the recoverable amount of the asset

group or combination of asset groups where the goodwill is located. The asset group composed of

identifiable intangible assets (excluding working capital and non-operating assets) is related to

goodwill. The confirmation of the asset group at the time of goodwill impairment test is

consistent with the asset group or combination of asset groups determined at the date of purchase

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

and the previous year’s goodwill impairment test.

(4) The key assumptions and basis for calculating the recoverable amount of the asset group are

as follows:

① Assuming that the assessed unit continues to operate and there are no major changes in the

key aspects of the business scope sales model and channels management etc. that affect

production and operation from the current situation;

② Assume that the social and economic environment of the assessed unit does not change

significantly and the relevant laws regulations and policies of the country and the region where

the company is located have no major changes;

③ Assume that the business scope operation mode management mode etc. of the assessed unit

are continuously improved and improved on the basis of maintaining consistency and can make

timely adjustments and innovations as the economy develops;

④ Assume that the various products provided by the assessed unit can adapt to market demand

the formulated goals and measures can be achieved as scheduled and at the scheduled time and

the expected benefits are obtained;

⑤ Assuming that interest rates exchange rates tax bases and tax rates do not change significantly

within the normal range prescribed by the state.⑥ The recoverable amount of the asset group and asset group combination is based on the

five-year budget approved by the management and calculated using the cash flow forecast

method.

(5) The goodwill impairment of each asset group of the company is as follows:

The recoverable amount of Jiangxi Konka is determined according to the present value of the

expected future cash flow. The future cash flow is determined based on the financial budget

approved by management from 2021 to 2025 and uses a discount rate of 13.48%. Jiangxi

Konka’s cash flow for more than 5 years is calculated based on a growth rate of 0%. The

company hired an appraisal agency Beijing Zhongtianhe Assets Appraisal Co. Ltd. to evaluate

the company’s subsidiary Jiangxi Konka Company using the income method and cost method

using the present value of the asset group’s estimated future cash flows as its recoverable amount.

On 22 March 2021Konka Group Co. Ltd.'s Asset Evaluation Report on Recoverable Amount

Items of Goodwill Asset Group of Konka New Materials Asset Group for Financial Reporting

Purposes after Goodwill Impairment Test (ZTHPZ [2021] No. 90006) was issued with 31

December 2020 as the base date. The current value of Jiangxi Konka Assets Group on the

assessment base date is RMB 1481000000 and the book value of the asset group after fair

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

value adjustment (including overall goodwill) is RMB 1633758400 of which the book value of

goodwill (converted minority shareholders) is RMB 517021100. As the recoverable amount of

the asset group is less than the book value of the asset group containing goodwill Jiangxi

Konka’s goodwill provision for asset impairment is RMB 77906800 in the current period.The recoverable amount of XingDa HongYe is determined according to the present value of the

expected future cash flow. The future cash flow is determined based on the financial budget

approved by management from 2021 to 2025 and uses a discount rate of 13.50%. XingDa

HongYe’s cash flow for more than 5 years is calculated based on a growth rate of 0%. The

Company hired an appraisal agency Beijing Zhongtianhe Assets Appraisal Co. Ltd. to evaluate

the Company’s subsidiary XingDa HongYe using the income method and the cost method using

the present value of the asset group’s estimated future cash flows as its recoverable amount. On

22 March 2021 Konka Group Co. Ltd.'s Asset Evaluation Report on Recoverable Amount Items

of Goodwill Asset Group of XingDa HongYe for Financial Reporting Purposes after Goodwill

Impairment Test (ZTHPZ [2021] No. 90007) was issued with 31 December 2020 as the base date.The current value of XingDa HongYe on the base date is RMB2.95182million and the book

value of the asset group after fair value adjustment (including overall goodwill) is RMB

338240700 of which the book value of goodwill (minority shareholders included) is RMB

86581700. The recoverable amount of the asset group is less than the book value of the asset

group containing goodwill. Therefore XingDa HongYe Company's goodwill provision for asset

impairment is RMB 21.96 million in this period.

All the asset groups of Anhui Konka that contain goodwill have been disposed of. Therefore

Anhui Konka’s goodwill provision for asset impairment is RMB 3597700 in the current period

and treat the goodwill as decrease.The recoverable amount of Econ Technology is determined according to the present value of the

expected future cash flow. The future cash flow is determined based on the financial budget

approved by management from 2021 to 2025 and uses a discount rate of 13.68%. Econ

Technology’s cash flow for more than 5 years is calculated based on a growth rate of 0%. The

company hired an appraisal agency Beijing Zhongtianhe Assets Appraisal Co. Ltd. to evaluate

the company’s subsidiary Econ Technology using the income method using the present value of

the asset group’s estimated future cash flows as its recoverable amount. On 22 March 2021Konka

Group Co. Ltd.'s Asset Evaluation Report on Recoverable Amount Items of Goodwill Asset Group

of Econ Technology for Financial Reporting Purposes after Goodwill Impairment Test (ZTHPZ

[2021] No. 90008) was issued with 31 December 2020 as the base date. The current value of

Econ Technology Assets Group on the assessment base date is RMB 989000000 and the book

value of the asset group after fair value adjustment (including overall goodwill) is RMB

929908300 of which the book value of goodwill (converted minority shareholders) is RMB

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

917304200. The recoverable amount of the asset group is more than the book value of the asset

group containing goodwill. Therefore Econ Technology has passed the goodwill impairment test

and there is no impairment provision.

22. Long-term Deferred Expenses

Item

Beginning

balance

Increased

Amortization

amount

Other decreased

amount

Ending balance

Renovat

ion

costs

35841835.32 74298710.43 17050791.01 167517.29 92922237.45

Shoppe

expense

44140602.62 26144987.84 29972968.23 15633992.77 24678629.46

Others 27607640.94 51456808.36 40693905.40 2772847.99 35597695.91

Total 107590078.88 151900506.63 87717664.64 18574358.05 153198562.82

23. Deferred Income Tax Assets/Deferred Income Tax Liabilities

(1) Deferred Income Tax Assets without Offset

Item

Ending balance Beginning balance

Deductible

temporary

difference

Deferred income

tax liabilities

assets

Deductible

temporary

difference

Deferred

income tax

liabilities

assets

Deductible

losses

3454342497.93 765781935.91 2855624412.76 706342740.49

Assets

impairment

provision

1672345584.63 355173623.87 1079890030.44 231517239.58

Deferred

Income

302984312.52 75408820.37 66778170.56 15971309.52

Accrued

expenses

206844865.32 40844897.61 70273842.14 12047558.72

Unrealized

internal sales

profits

37257399.14 9068649.87 18570975.99 4642744.00

Others 90902865.84 19638509.76 75254629.43 17241589.86

Total 5764677525.38 1265916437.39 4166392061.32 987763182.17

(2) Lists of Deferred Income Tax Liabilities without Offset

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance Beginning balance

Taxable

temporary

difference

Deferred

income tax

liabilities

Liability

Taxable

temporary

difference

Deferred

income tax

liabilities

Liability

Estimated added

value of assets not

under the same

control

303689567.68 57097842.23 406494736.72 76293954.88

Prepaid interest 48578683.63 11840140.77 68199141.94 16489202.46

Accelerated

depreciation of

fixed assets

4443598.64 959974.66 3732276.80 559841.52

Others 27585930.42 5921274.27 8496388.76 2124097.19

Total 384297780.37 75819231.93 486922544.22 95467096.05

(3) List of Unrecognized Deferred Income Tax Assets

Item Ending balance Beginning balance

Deductible losses 1526406964.50 2693777327.44

Deductible temporary difference 766691485.59 407628243.69

Total 2293098450.09 3101405571.13

(4) Deductible loss of the unrecognized deferred income tax assets will be due in the following

years

Year Ending balance

2021 375609938.04

2022 333312677.24

2023 146623243.29

2024 165757234.71

2025 505103871.22

Total 1526406964.50

24. Other Non-current Assets

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance

Carrying

amount

Impairm

ent

provision

Carrying value

Prepayment for land-purchase 1538728032.15 1538728032.15

Prepaid amount for engineering equipment

and other long-term assets

247719684.59 247719684.59

Entrusted loans 10867888.84 10867888.84

Construction of government projects 23463565.16 23463565.16

Total 1820779170.74 1820779170.74

(Continued)

Item

Beginning balance

Carrying amount

Impairment

provision

Carrying value

Prepayment for land-purchase 820340528.30 820340528.30

Prepaid amount for engineering

equipment and other long-term

assets

277656830.39 277656830.39

Entrusted loans 40000000.00 40000000.00

Construction of government

projects

34475365.16 34475365.16

Total 1172472723.85 1172472723.85

25. Short-term Borrowings

Item Ending balance Beginning balance Description

Unsecured

borrowings

7164301258.30 7305280566.00

Borrowings

secured by

guarantee

2038705892.75 1505320018.29 ①②③

Borrowings

secured by

collateral

1787543324.73 1522086655.34

④⑤⑥⑦⑧⑨

⑩????

Total 10990550475.78 10332687239.63

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Notes: ① The Company provides joint liability guarantees for its subsidiary Anhui Konka

Dongguan Konka Sichuan Konka Anhui Tongchuang Pengrun Technology Electronics

Technology Econ Technology Kong Kong Konka Jiangxi Konka Nano Crystallized Glass

Xinfeng Microcrystalline and Ningbo Kanghanrui Appliances for a total of RMB

1477297053.28.

② The Company obtained a short-term loan of RMB 500000000.00 from Chegongmiao

Sub-branch of China Everbright Bank under maximum joint liability guarantee provided by

Electronics Technology a subsidiary of the Company.

③ The Company provided a maximum-amount joint-liability guarantee for a short-term

borrowing of RMB61408839.47 granted by the Yantai sub-branch of Industrial Bank to the

Company’s subsidiary Econ Technology.

④ The Company put bank deposits of RMB81839066.89 in pledge for a short-term borrowing

of RMB157135000.00 and bank acceptance notes of RMB69398133.78 from China Zheshang

Bank.

⑤ The Company put certificates of deposit of RMB200000000.00 in pledge for a short-term

borrowing of RMB199778333.33 from the Shenzhen branch of China Everbright Bank.⑥ The Company put security deposits of RMB150000000.00 in pledge for a short-term

borrowing of RMB297933333.35 from the Shenzhen branch of Guangdong Huaxing Bank.⑦ The Company put structured deposits of RMB289160000.00 in pledge for a short-term

borrowing of RMB298377374.45 from Xiamen International Bank.⑧ The Company’s subsidiary Electronic Technology put structured deposits of

RMB310000000.00 in pledge for a short-term borrowing of RMB318033786.31 from Xiamen

International Bank.⑨ The Company’s subsidiary Anhui Tongchuang put security deposits of RMB15000000.00

and notes receivable of RMB100800000 in pledge for a short-term borrowing of

RMB137655744.43 from the Hefei branch of China Zheshang Bank.

⑩ The Company’s subsidiary Econ Technology put RMB75000000.00 in pledge for a short

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

term borrowing of RMB148629752.86 from the Yantai branch of China Zheshang Bank with

the Company providing the joint-liability guarantee.? The Company’s subsidiary XingDa HongYe obtained a short-term loan of RMB

95000000.00 from the Zhongshan Rural Commercial Bank using by creating a pledge on time

deposit certificates with a book value of RMB 19800000.00 and on a mortgage on buildings of

RMB40867928.18 and land use rights of RMB14517613.34. Hu Zehong provided joint

liability guarantee for the loan.? The Company’s subsidiary Boluo Konka Precision obtained a short-term loan of RMB

5000000.00 from Guangzhou Bank Co. Ltd. Huizhou Branch with the real estate of Boluo

Konka with the book value of RMB 7526113.83 and land use rights of RMB1113084.13 as

collateral. Konka Group provides joint liability guarantee.? The Company’s subsidiary Anhui Konka obtained a short-term loan of RMB 80000000.00

from Chuzhou Branch of Bank of China by creating mortgage on land use right with a book value

of RMB 55952866.67 and ongoing projects worth RMB 328756028.19. The Company

provided joint liability guarantee for the loan.? The Company’s subsidiary Anhui Tongchuang obtained a short-term loan of RMB

50000000.00 from China Zheshang Bank Hefei Branch with a mortgage on real estate with a

book value of RMB 154681545.21 and collateral on land use right worth RMB 18920247.71.

26. Notes Payable

Category Ending balance Beginning balance

Bank’s acceptance bill 1159251569.31 1136168273.60

Commercial acceptance bill 176735456.90 183228100.77

Total 1335987026.21 1319396374.37

27. Accounts Payable

(1) List of Accounts Payable

Item Ending balance Beginning balance

Within 1 year 8134924659.58 4589056681.97

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Ending balance Beginning balance

1 to 2 years 1279766515.39 1000925754.57

2 to 3 years 87184184.40 165360015.84

Over 3 years 130490966.39 42480027.22

Total 9632366325.76 5797822479.60

(2) Significant Accounts Payable Aging over One Year

Item

Ending balance

Unpaid/Un-carry-over

reason

Hunan Fifth Engineering Co.Ltd

592728404.31

Not meet the settlement

conditions

China Railway No. 4

Engineering Group Co. Ltd.

305090587.47

Not meet the settlement

conditions

Chongqing Jiulong Kuiguan

Building Materials Co. Ltd.

115552377.45

Not meet the settlement

conditions

Henan Yaofeng Industrial Co.Ltd. 98891330.28

Not meet the settlement

conditions

Rushan Water Group Co. Ltd. 99558100.00

Not meet the settlement

conditions

Total 1211820799.51 —

28. Contractual liabilities

(1) Details of Contractual liabilities

Item Ending balance Beginning balance

Sales advances received 1217367735.94 959538151.80

Total 1217367735.94 959538151.80

(2) There is no significant change in carrying amount of contractual liabilities in the current

period

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

29. Payroll Payable

(1) List of Payroll Payable

Item Beginning

balance

Increased Decreased Ending balance

List of Short-term Salary 422361193.20 1772852908.34 1722013304.70 473200796.84

Post-employment

benefit-defined

contribution plans

3408038.58 68338032.86 69462795.62 2283275.82

Termination benefits 1101266.80 39874526.02 39843621.03 1132171.79

Current portion of other

benefits

- - - -

Total 426870498.58 1881065467.22 1831319721.35 476616244.45

(2) List of Short-term Salary

Item

Beginning

balance

Increased Decreased Ending balance

Salary bonus

allowance subsidy

407335502.77 1568242877.25 1517512854.56 458065525.46

Welfare for

employees

5147293.66 59180912.56 63324920.30 1003285.92

Social securities

expense

3211419.29 47645814.91 45969544.25 4887689.95

Of which: Medical

insurance premiums

289685.48 42276867.29 41308977.99 1257574.78

Work-related

injury insurance

39991.73 977895.80 930601.24 87286.29

Maternity

insurance

2881742.08 4391051.82 3729965.02 3542828.88

Housing fund 604087.40 51740892.25 50850048.27 1494931.38

Labor union budget

and employee

education budget

5237407.88 12986389.12 10940610.59 7283186.41

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Beginning

balance

Increased Decreased Ending balance

Short-term absence

with payment

Short-term profit

sharing plan

Others 825482.20 11751566.42 12110870.90 466177.72

Total 422361193.20 1751548452.51 1700708848.87 473200796.84

(3) List of Defined Contribution Plan

Item Beginning

balance

Increased Decreased Ending

balance

Basic pension benefits 3353470.05 66664960.26 67851155.26 2167275.05

Unemployment insurance 54568.53 1672701.23 1611640.36 115629.40

Annuity 371.37 371.37

Total 3408038.58 68338032.86 69462795.62 2283275.82

30. Taxes Payable

Item Ending balance Beginning balance

Corporate income tax 264749734.19 341818196.88

VAT 186891111.62 197795056.62

Fund for disposing abandoned

appliances and electronic products

19157745.00 22862428.00

Urban maintenance and construction tax 10206690.62 12363121.25

Education fees and local education

Surcharge

7361219.22 9346458.05

Stamp duty 6041179.34 5046657.96

Land use tax 5095730.68 3587908.55

Individual income tax 3023518.75 7468808.32

Property tax 2209076.63 2868061.86

Tariff 2008914.61 2440099.93

Others 1469138.50 2248497.57

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Ending balance Beginning balance

Total 508214059.16 607845294.99

31. Other payables

Item Ending balance Beginning balance

Interest payable 220837380.17 227831108.53

Other Payables 1778593519.52 2053341998.25

Total 1999430899.69 2281173106.78

31.1. Interests payable

(1) Classification

Item Ending balance Beginning balance

Interest on corporate bonds 180268944.49 180268944.49

Interest on long-term borrowings

with interest paid by installment and

principal paid at maturity

17162676.76 27783745.85

Interest payable on short-term

borrowings

23350524.40 19189933.23

Others 55234.52 588484.96

Total 220837380.17 227831108.53

31.2 Other payables

(1) Listed by Nature of Account

Item Ending balance Beginning balance

Expenses payable 626909820.31 854281815.33

Come-and-go money 330967783.33 162935213.66

Equity transfer payment 157682796.96 374725896.96

Related party borrowing 344520800.92 374227833.11

money Generation of advances 243197538.56 260078756.86

Cash deposit and front 7795410.38 13789615.70

Others 67519369.06 13302866.63

Total 1778593519.52 2053341998.25

(2) Other Significant Payables Aging over One Year

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance

Unpaid/Un-carry-over

reason

Equity transfer money of Econ

Technology

96500000.00

Not meet the settlement

conditions

Equity transfer money of

Jiangxi Konka

61180000.00

Not meet the settlement

conditions

Total 157680000.00 —

32. Current Portion of Non-current Liabilities

Item Ending balance Beginning balance

Current portion of long-term

borrowings

18150000.00 123000000.00

Current portion of long-term

payables

358746566.29 87066077.13

Total 376896566.29 210066077.13

33. Other current liabilities

Item Ending balance Beginning balance

Accounts payable with trade

acceptance notes

432420000.00

Sales return payable 9354317.23 16726801.27

Total 441774317.23 16726801.27

34. Long-term Borrowings

(1) Classification

Item Ending balance Beginning balance Description

Guaranteed

borrowings

2058000000.00 ①、②

Pledge borrowings 3123838997.54 1556255729.90

③、④、⑤、⑥、⑦、⑧、⑨、⑩、?、?

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Entrusted borrowings 611060000.00 3334060000.00 ?

Credit loan 190000000.00 123000000.00

Less: Current portion 18150000.00 123000000.00

Total 5964748997.54 4890315729.90

Notes: ① The Company obtained a long-term loan of RMB 2000000000.00 from the

Export-Import Bank of China with a loan term from 22 June 2020 to 24 June 2022. OCT Group

the parent of the Company provides joint liability guarantee for the loan.② Subsidiary XingDa HongYe obtained a long-term loan of RMB 58000000.00 from the

Xiamen International Bank with a loan term from 25 November 2020 to 25 February 2022. The

Company provides maximum joint liability guarantee for the loan.

③ Donggang Kangrun a subsidiary took the accounts receivable under the Contract of the PPP

project of Donggang City Inland Comprehensive Treatment Project as a pledge to obtain a

long-term loan of RMB 600000000.00 from the China Construction Bank Donggang

Sub-branch. The loan period is from 31 January 2019 to 30 January 2036.④ Subsidiary Funan Kangrun obtained a long-term loan of RMB 465000000.00 from the

Agricultural Development Bank of China Funan County Sub-branch with the feasibility gap

subsidy and government payment under the PPP project of the whole area sewage treatment

project of Funan County as pledge. The loan period is from 30 August 2019 to 22

August 2039.

⑤ Weifang Sihai a subsidiary of the company pledged the long-term loan amount of RMB

512746900.00 from Industrial Bank Co. Ltd. Weifang Branch with the accounts receivable

formed from all the proceeds and income rights of the Weifang Binhai Economic Development

Zone PPP project. The loan period is from 26 June 2019 to 25 June 2035.⑥ Subsidiary Laizhou Lairun obtained a long-term loan of RMB 118007485.22 from Laizhou

Branch of Postal Savings Bank of China by pledging its the accounts receivable from all the

proceeds and right to proceeds under the contract in relation to the PPP project of Laizhou Second

Sewage Treatment Plant and supplementary agreements thereto. The loan term is from 17 January

2020 to 16 January 2040.

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

⑦ Subsidiary Econ Technology provides a commitment letter of balance complement for Wuhan

Runyuan when Wuhan Runyuan obtains a long-term loan of RMB 378600000.00 from Wuhan

Dongxihu District Sub-branch of Agricultural Development Bank of China by pledging its

accounts receivable under the contract in connection with Huangling District Rural Sewage

Treatment PPP Project. The loan term is from 22 January 2020 to 19 January 2040.⑥ Subsidiary Econ Technology provides joint liability guarantee for Subei Kangrun when Subei

Kangrun obtains a long-term loan of RMB 516000000.00 from Dunhuang Sub-branch of

Agricultural Development Bank of China by pledging its accounts receivable under the contract

in connection with the Mazongshan water supply PPP project in Subei Mongol Autonomous

County Gansu. The loan term is from 10 March 2020 to 9 March 2035.

⑨ Subsidiary Rushan Econ pledged its long-term accounts receivable with a book value of RMB

351107041.45 to obtain a long-term loan of RMB 115810000.00 from Yantai Economic

Development Zone Sub-branch of China Everbright Bank. The loan term is from 29 December

2016 to 28 December 2026 and the subsidiary Econ Technology provides joint liability

guarantee.⑩ Subsidiary Dayi Kangrun Water obtained a long-term loan of RMB 188700000.00 from

Chengdu Qinglong Sub-branch of Industrial and Commercial Bank of China by pledging its right

to RMB 1000000000.00 yields from the operation of the Dayi Industrial Sewage and Recycled

Water Treatment Plant under franchise. The loan term is from 29 April 2020 to 10 April 2035 and

the subsidiary Econ Technology provides a commitment letter of balance complement.

? OCT Group the parent of the Company issued an entrusted loan of RMB 611060000.00 to

the Company through the China Merchants Bank. The loan term is from 12 November 2020 to 9

December 2022.

? The company obtained a long-term loan of RMB 128974612.32 from Shenzhen Branch of

Guangdong Huaxing Bank Co. Ltd. with the book value of RMB 187546621.37 and the right to

use state-owned construction land of RMB 13735772.90 as collateral. The loan term is from

April 12 2019 to April 11 2024.

? Subsidiary Sichuan Konka obtain an entrusted borrowing of RMB 100000000.00 from

Sichuan Gangrong Investment Development Group Co. Ltd. under the pledge on the land use

right of subsidiary Yibin Konka Hi-Tech Industrial Park with a book value of RMB

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

13532751.06. The subsidiary Communication Technology provided joint liability guarantee for

the loan. The life of loan was from 8 May 2018 to 24 May 2025.

35. Bonds Payable

(1) List of Bonds Payable

Item Ending balance Beginning balance

Non-public offering corporate

bonds

4993212788.32 4987709643.64

Total 4993212788.32 4987709643.64

(2) Increase/Decrease of Bonds Payable

Bonds

name

Total par value

Issuing

date

Dura

tion

Issuing amount

Beginning

balance

19Konka01

(note ①)

1000000000.00 2019-1-14

2+1

years

996500000.00 997798742.17

19Konka02

(note ②)

1500000000.00 2019-1-14 3 1494750000.00 1496698113.21

19Konka03

(note ③)

500000000.00 2019-6-3

2+1

years

498250000.00 498670073.37

19Konka04

(note ④)

500000000.00 2019-6-3 3 498250000.00 498670073.37

19Konka05

(note ⑤)

800000000.00 2019-7-22

2+1

years

797200000.00 797798742.14

19Konka06

(note ⑥)

700000000.00 2019-7-22 3 697550000.00 698073899.38

Total 5000000000.00 — — 4982500000.00 4987709643.64

(Continued)

Bonds

name

Issued

during

the

Reporti

Period

Withdraw interest

at face value

Amortizatio

n of

premium

and discount

Repay

during

the

Reporting

Period

Ending balance

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Bonds

name

Issued

during

the

Reporti

Period

Withdraw interest

at face value

Amortizatio

n of

premium

and discount

Repay

during

the

Reporting

Period

Ending balance

19Konka01

(note ①)

50000000.00 1100628.96 998899371.13

19Konka02

(note ②)

75000000.00 1650943.44 1498349056.65

19Konka03

(note ③)

22500000.00 550314.48 499220387.85

19Konka04

(note ④)

23500000.00 550314.48 499220387.85

19Konka05

(note ⑤)

36240000.00 880503.12 798679245.26

19Konka06

(note ⑥)

32900000.00 770440.20 698844339.58

Total 240140000.00 5503144.68 4993212788.32

Note 1: ① On 14 January 2019 RMB 1 billion of private placement corporate bonds was issued

with the duration of two plus one years the annual interest rate of 5.00% and the due date of 14

January 2021.② On 14 January 2019 RMB 1.5 billion of private placement corporate bonds was issued with

the duration of three years the annual interest rate of 5.00% and the due date of 14 January 2022.③ On 3 June 2019 RMB 0.5 billion of private placement corporate bonds was issued with the

duration of two plus one years the annual interest rate of 4.50% and the due date of 3 June 2021.④ On 15 January 2019 RMB 0.5 billion of private placement corporate bonds was issued with

the duration of three years the annual interest rate of 4.70% and the due date of 3 June 2022.⑤ On 22 July 2019 RMB 0.8 billion of private placement corporate bonds was issued with the

duration of two plus one years the annual interest rate of 4.53% and the due date of 22 July 2021.⑥ On 22 July 2019 RMB 0.7 billion of private placement corporate bonds was issued with the

duration of three years the annual interest rate of 4.70% and the due date of 22 July 2022.Note 2: OCT Group provided full-amount unconditional and irrevocable joint and several

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

liability guarantee for the due payment of the private offering of corporate bonds.

36. Long-term Payables

Item Ending balance Beginning balance

Accrued financing lease outlay 921958930.55 519416941.74

Of which: unrecognized financing

expense

81802514.30 49063759.99

Less: Current portion 358746566.29 87066077.13

Total 481409849.96 383287104.62

37. Long-term Payroll Payable

Classification

Item Ending balance Beginning balance

Termination benefits-net liabilities of

defined contribution plans 5248309.14 5565646.72

Total 5248309.14 5565646.72

38. Provisions

Item Ending balance Beginning

balance

Reason for

formation

Product quality assurance 102146976.40 93114136.42

After-sales of

household

appliances

Others 206591.51 206591.51

Total 102353567.91 93320727.93

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

39. Deferred Income

(1) Category of Deferred Income

Item Beginning balance Increased Decreased

Ending balance

Reason for

formation

Government

subsidies 151874258.45 331672713.46 36646447.27 446900524.64

Asset-related/i

ncome related

Total

151874258.45 331672713.46 36646447.27 446900524.64

(2) Government subsidy

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

Subsidy for construction

of Yibin factory of Yibin

Konka Industrial Park

56943815.54 16035384.46 72979200.00 Asset-related

Subsidy for Dual HDR

OLED Smart TV R&D

and industrialization

13300000.00 13300000.00 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

project

Subsidy for the smart

TV industrial chain

project of Konka Group

Co. Ltd.

10860500.00 4494000.00 6366500.00 Asset-related

Operating subsidy for

Konka Zhifu Life

Science Innovation

Center project

6500000.14 1999999.92 4500000.22 Asset-related

Subsidy for Konka Yibin

Intelligent Terminal

Innovation Center

Incubation Project

6000000.00 6000000.00 Asset-related

Subsidy for 2017

Shenzhen Industrial

Chain Weak Links

Investment Project

4500000.00 4500000.00 Asset-related

Subsidy for supporting

the next-generation

Internet intelligent

terminal system

development and

3798349.54 1981747.56 1816601.98 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

production project

Subsidy for Konka smart

home cloud smart

control platform

construction project

2896000.04 2896000.04 Asset-related

Capital subsidy for

Shenzhen Economy and

Trade and

Informatization

Committee 2015

Shenzhen Industrial

Design Center

2550000.00 1276000.02 1273999.98 Asset-related

Subsidy for Konka

next-generation

multi-media terminal

technology engineering

lab project

2500000.10 999999.96 1500000.14 Asset-related

Post grant for 2016

Industrial Enterprise

Technological

Renovation

2187360.00 546840.00 1640520.00 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

Subsidy for

NB-IOT-based display

terminal smart factory

new model project

2184000.00 819000.00 1365000.00 Asset-related

Subsidy for development

and industrialization of

digital products that are

collaborative and

connected

2080000.04 519999.96 1560000.08 Asset-related

Subsidy for

next-generation

household multi-media

terminal technology

engineering lab

improvement project

2000000.00 2000000.00 Asset-related

Subsidy for 8K

equipment end-to-end

signal connection key

technology and terminal

display product R&D

project

1800000.00 1800000.00 Asset-related

Subsidy for vein R&D 1750000.00 1750000.00 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

center project

Specific subsidy for

mobile Internet

4th-generation mobile

communication

industrialization

1734662.37 412490.04 1322172.33 Asset-related

Subsidy for IGRS-based

information terminal

R&D and

industrialization project

1400000.00 1400000.00 Asset-related

2017 provincial major

specific subsidy

1400000.00 480000.00 920000.00 Asset-related

Subsidy for big data

mining-based user

operation system R&D

and industrialization

project

1320000.00 1320000.00 Asset-related

Subsidy for

AVS/DRA-based

terminal and supporting

core chip R&D project

1311333.18 1311333.18 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

Subsidy for true

three-dimensional video

continual view point

real-time integration and

advance testing project

1277999.98 284000.04 993999.94 Asset-related

Subsidy for module

whole-machine

integration project

1275000.00 300000.00 975000.00 Asset-related

Subsidy for mobile

intelligent terminal new

application service

system R&D and

industrialization project

1265783.60 727279.92 538503.68 Asset-related

Subsidy for special

decoration of Huiqi

flagship store of

Shenzhen International

Consumer Electronics

Exchange/Exhibition

Center Co. Ltd.

1200000.00 1200000.00 Asset-related

Specific subsidy for

Dongguan Fiscal

1200000.00 600000.00 600000.00 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

Provincial-level strategic

emerging industries

Subsidy for super-short

focus laser projecting

smart TV R&D project

1075000.00 935000.00 140000.00 Asset-related

Subsidy for built-in

operation system for TV

application R&D project

1033110.10 459159.96 573950.14 Asset-related

Subsidy for secure and

reliable chip-based

satellite ground receiver

project

1000000.00 1000000.00 Asset-related

Central infrastructure

investment budgetary

subsidy for preliminary

work of PPP project

1000000.00 1000000.00 Asset-related

2016 Guangdong

Province enterprise

research and

development provincial

fiscal subsidy

916879.90 229217.73 687662.17 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

2010-2012 industrial

technology specific

subsidy

840000.00 420000.00 420000.00 Asset-related

Subsidy for mobile

intelligent terminal

information security

system key technology

R&D project

835187.04 480000.00 355187.04 Asset-related

Specific subsidy for

business restructuring

799999.80 200000.04 599999.76 Asset-related

2018 Anhui Province

robotics specific subsidy

780000.00 180000.00 600000.00 Asset-related

Subsidy for dual-channel

new 3D smart TV R&D

and industrialization

project

778166.79 405999.96 372166.83 Asset-related

Post fiscal subsidy for

2016 industrial

enterprise technological

renovation

733480.08 183369.96 550110.12 Asset-related

Subsidy for multiple 675000.00 300000.00 375000.00 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

view point

high-definition nuke-eye

3D smart LCD TV

project

Subsidy for new

man-machine interaction

smart TV R&D and

industrialization project

525689.15 525689.15 Asset-related

Subsidy for

three-networks

integration smart TV and

system support platform

project

266666.84 266666.84 Asset-related

Anhui Province

Technology Office R&D

devices subsidy

176250.00 45000.00 131250.00 Asset-related

Subsidy for 3D TV

terminal development

and industrialization

project

108333.15 108333.15 Asset-related

Supporting fund for

Suining Konka

229420000.00 229420000.00

Income-relate

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

Industrial Park

Special government

grants for Tongchuan

Project

30000000.00 30000000.00

Income-relate

(CCTV 2) 8K UHD

display chip R&D and

industrialization project

20000000.00 20000000.00 Asset-related

Subsidy for return of the

land in Konka

Chongqing Industrial

Park

19440000.00 327272.73 19112727.27 Asset-related

NB-IOT-based display

terminal smart factory

new model

4095000.00 682500.00 3412500.00 Asset-related

Subsidy for cost of

Wuzhen Konka

digitalization of physical

spaces

3000000.00 3000000.00 Asset-related

Subsidy for new

equipment purchased by

Sichuan Konka

2133169.00 2133169.00 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

Special subsidy for

quality development

(technical upgrading) for

Tongchuang

1546519.00 71650.28 1474868.72 Asset-related

Grant for major

provincial science &

technology programs at

Anhui Konka

1500000.00 25000.00 1475000.00 Asset-related

Subsidy for new

equipment purchased by

Yibin Yanjiang

Construction Investment

& Development Co.

Ltd.

1215523.00 230208.29 985314.71 Asset-related

Subsidy for municipal

technological upgrading

program at Dongguan

668700.00 5814.79 662885.21 Asset-related

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

List of Government

Subsidy

Beginning

balance

New amount in

the period

Amount

charged to

non-operating

income in the

period

Amount charged

to other income

in the period

Other

changes

Ending balance

Asset/income

-related

Konka

Z20200104 5G Smart

TV key technologies

R&D project

600000.00 600000.00 Asset-related

Basic construction fund

of Suining Industrial

Park

500000.00 500000.00 Asset-related

Equipment subsidy for

Anhui Konka technical

upgrading project

490000.00 98000.04 391999.96 Asset-related

Municipal technological

breakthrough project at

Anhui Konka

400000.00 20000.01 379999.99 Asset-related

Other asset-related

government subsidies

5095691.07 628418.00 2598873.70 3125235.37 Asset-related

Total 151874258.45 331672713.46 36646447.27 446900524.64

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

40. Other non-current liabilities

Item Ending balance Beginning balance

Contract obligations over one year 106475449.02 117318235.28

Total 106475449.02 117318235.28

41. Share capital

Item Beginning balance

Increase/decrease (+/-)

Ending balance

New

issued

nus

sha

res

Bonus

issue

from

profit

Oth

ers

Sub

tota

Total

2407945408.00 2407945408.00

Total 2407945408.00 2407945408.00

42. Capital Reserves

Item Beginning balance Increased Decreased Ending balance

Other capital

reserves

230368577.09

183267.00 230185310.09

Total 230368577.09 183267.00 230185310.09

Note: The other capital reserves decreased by RMB 183267.00 due to the disposal of Zhuhai

Jinsu Plastic Co. Ltd. an associate of the Company.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

43. Other Comprehensive Income

Item

Beginning

balance

Reporting Period

Ending balance

Income before

taxation in the

Current Period

Less:

Recorded in

other

comprehensiv

e income in

prior period

and

transferred in

profit or loss

in the

Current

Period

Less: Recorded

in other

comprehensive

income in prior

period and

transferred in

retained

earnings in the

Current Period

Less:

Income

tax

expense

Attributable to

owners of the

Company as

the parent after

tax

Attributable to

non-controlling

interests after

tax

I. Items that will not

be reclassified to profit

or loss

-9652181.00 1701121.80 -1628195.00 3253302.80 76014.00 -6398878.20

Changes in fair

value of other equity

instrument investment

-9652181.00 1701121.80 -1628195.00 3253302.80 76014.00 -6398878.20

Others

II. Items that will be

reclassified to profit or

loss

-11640922.52 -4501482.44 1456758.30 -5958240.74 -10184164.22

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Beginning

balance

Reporting Period

Ending balance

Income before

taxation in the

Current Period

Less:

Recorded in

other

comprehensiv

e income in

prior period

and

transferred in

profit or loss

in the

Current

Period

Less: Recorded

in other

comprehensive

income in prior

period and

transferred in

retained

earnings in the

Current Period

Less:

Income

tax

expense

Attributable to

owners of the

Company as

the parent after

tax

Attributable to

non-controlling

interests after

tax

Of which: Other

comprehensive income

that will be reclassified

to profit or loss under

the equity method

-2397350.96 -2397350.96

Differences arising

from the translation of

foreign currency

denominated financial

statements

-9243571.56 -4501482.44 1456758.30 -5958240.74 -7786813.26

Total Other

Comprehensive

-21293103.52 -2800360.64 -1628195.00 4710061.10 -5882226.74 -16583042.42

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Beginning

balance

Reporting Period

Ending balance

Income before

taxation in the

Current Period

Less:

Recorded in

other

comprehensiv

e income in

prior period

and

transferred in

profit or loss

in the

Current

Period

Less: Recorded

in other

comprehensive

income in prior

period and

transferred in

retained

earnings in the

Current Period

Less:

Income

tax

expense

Attributable to

owners of the

Company as

the parent after

tax

Attributable to

non-controlling

interests after

tax

Income

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

44. Surplus Reserves

Item Beginning balance Increased Decreased Ending balance

Statutory

surplus reserves

973502519.62 973502519.62

Discretional

surplus reserves

238218590.05 238218590.05

Total 1211721109.67 1211721109.67

45. Retained Earnings

Item Reporting Period Same period of last

year

Ending balance of last year 4239763606.89 4271408192.21

Add: Total beginning balance of retained earnings

before adjustments

Of which: change of accounting policy -2884254.62

Other adjustment factors

Beginning balance of the Reporting Period 4239763606.89 4268523937.59

Add: Net profit attributable to owners of the

Company as the parent

477633250.14 212034210.08

Retained incomes carried forward from other

comprehensive income

-1628195.00

Less: Withdrawal of statutory surplus reserves

Withdrawal of discretional surplus reserves

Dividend of ordinary shares payable 120397270.40 240794540.78

Ending balance of this year 4595371391.63 4239763606.89

46. Operating Revenue and Cost of Sales

(1) Operating Revenue and Cost of Sales

Item

Reporting Period Same period of last year

Operating revenue Cost of sales Operating revenue Cost of sales

Main

operations

49869938568.55 47324236629.26 54571250596.51 51874875221.16

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period Same period of last year

Other

operations

481897986.32 270827720.72 547874882.21 263323279.88

Total 50351836554.87 47595064349.98 55119125478.72 52138198501.04

(2) Deduction from Operating Revenue

Item

Reporting Period Same period of last

year

Remark

Operating Revenue 50351836554.87 55119125478.72

Deduction items of

operating revenue

445172864.05 490479238.61

Of which: Material

sales revenue

166864921.37 200090835.48 Material sales revenue are

unrelated to the main

business

Rent revenue

149433237.64 100692214.92 Rent revenue are unrelated

to the main business

Scrap sales revenue

30676771.37 13628880.00 Scrap sales revenue are

unrelated to the main

business

Factoring revenue

2360483.05 32226997.88 Factoring revenue are

unrelated to the main

business

Other

95837450.62 143840310.33 Water and electricity fees

loading and unloading fees

and other are unrelated to

the main business

Subtotal of income

from business unrelated

to the main business

445172864.05 490479238.61

Subtotal of income

without commercial

substance

None

Operating revenue 49906663690.82 54628646240.11

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Reporting Period Same period of last

year

Remark

after deduction

(3) Main Operations (Classified by product)

Item

Reporting Period Same period of last year

Operating revenue Cost of sales Operating revenue Cost of sales

Supply

chain

trading

business

30483602365.87 30183532940.90 32744925411.86 32376857384.01

Color TV

business

7519625331.33 6925658808.00 8765607417.92 8005508211.90

Environme

ntal

protection

business

4823779902.39 4097138754.02 7079397665.91 6379216880.51

Consumer

appliances

business

3842051456.02 3317107750.97 3829318820.56 3299314084.65

Semi-cond

uctor

business

282969230.63 275286437.09

Others 2917910282.31 2525511938.28 2152001280.26 1813978660.09

Total 49869938568.55 47324236629.26 54571250596.51 51874875221.16

(4) Information on the transaction price allocated to the remaining performance obligation

The income corresponding to the performance obligations signed at the end of the year but not yet

fulfilled or not completed is 2914470639.31 yuan of which 2474070687.55 yuan is expected

to recognize revenue in 2021 376489946.62yuan is expected to recognize revenue in 2022 and

63910005.14yuan is expected to recognize revenue in 2023.

47. Taxes and Surtaxes

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period Same period of last year

Stamp duty 25112454.61 22123062.33

Urban maintenance and

construction tax

21225457.65 26917643.05

Land use tax 17657115.79 17468778.99

Property tax 13264477.94 15307845.93

Education surcharge 9423102.41 12222254.16

Local education surcharge 6341838.85 8143404.48

VAT of land 1072685.63 3071897.09

Water resources fund 766504.35 758046.72

Others 2372230.08 3838898.36

Total 97235867.31 109851831.11

48. Selling Expense

Item Reporting Period Same period of last year

Payroll 410820148.47 587024261.02

Advertising expense 405038820.57 459598430.49

Logistic Fee 395728038.37 406337281.28

Promotional activities 199811766.50 299435084.44

Warranty fee 186239759.56 197180754.12

Taxes and fund 58646916.00 53068717.14

Business travel charges 18952238.58 38355711.50

Rental charges 18695062.27 20839323.65

Exhibition expenses 17841836.83 46248959.80

Business entertainment expenses 13710892.65 19360409.81

Others 100141324.47 175683798.81

Total 1825626804.27 2303132732.06

49. Administrative Expense

Item Reporting Period Same period of last year

Payroll 524488419.75 485140844.16

Depreciation charge 147324296.40 101216934.52

Intermediary fees 100879921.97 45022285.82

Business travel charges 14489183.36 21665580.27

Patent fee 38863726.67 16457657.10

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period Same period of last year

Loss on scraping of

inventories

5515711.35 11955696.11

Water & electricity fees 11737097.44 12761543.31

Others 179683586.40 162308786.33

Total 1022981943.34 856529327.62

50. R&D Expense

Item Reporting Period Same period of last year

Salary 297465065.33 197406785.63

Material drawing out 120181005.28 104755285.94

Expenses on trial production of

new products 116276268.41 88111358.93

Commission service charge 32833667.49 41462134.39

Depreciation and amortization 23530284.84 12437250.53

Information charges 14229413.16 11747617.21

Testing fees 9552419.94 5812646.23

Others 67810487.20 38867023.37

Total 681878611.65 500600102.23

51. Finance Costs

Item Reporting Period Same period of last year

Interest expense 979223522.98 1031068425.69

Less: Interest income 164580939.30 247559600.76

Add: Exchange loss 220044519.70 -67740367.81

Other 56922864.38 60120356.02

Total 1091609967.76 775888813.14

52. Other Income

Item Reporting Period Same period of last year

Support fund 566075801.50 967721870.00

Rewards and subsidies 247663680.35 156190460.00

Transfer of deferred income 36646447.27 31183437.20

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period Same period of last year

Software tax rebates 30710313.50 39348087.93

Post subsidies 21703015.11 19185216.90

L/C export subsidy 5555574.57 3560576.00

Land tax rebates 15955706.27 10906489.80

Others 4622989.46 1078696.50

Total 928933528.03 1229174834.33

53. Investment Income

Item Reporting Period Same period of

last year

Long-term equity investment income measured

by equity method

104288418.75 141264035.96

Investment income from disposal of long-term

equity investment

1343712485.37 569444481.69

Investment income from holding of

held-for-trading financial assets

4800000.00 2330000.00

Investment income from disposal of

held-for-trading financial assets

3405333.03 -10285883.02

Income from remeasurement of residual stock

rights at fair value after losing control power

885804841.25 342337346.63

Interest income from holding of debt

investments

68621917.82 60433679.86

Income from entrusted wealth management

entrusted loans

21221916.72 73534655.05

Investment income adjusted due to unrealized

profits generated from upstream transactions

1081111.64 4322774.22

Investment income from disposal of financial

assets at fair value through current profit or loss

399980.27

Total 2433336004.85 1183381090.39

54. Gain on Changes in Fair Value

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Sources Reporting Period Same period of

last year

Trading financial assets 19089541.66

Of which: gain on changes in fair value of

derivative financial instruments

Trading financial liabilities -3005381.67

Total 19089541.66 -3005381.67

55. Credit Impairment Loss

Item Reporting Period Same period of last year

Loss on bad debts of notes

receivable

-24930991.28 -4306077.35

Bad debt losses of accounts

receivable

-444069685.68 -339398520.50

Bad debt losses of other

receivables

-258255844.49 -183525075.35

Bad debt loss of prepayment 4880671.30 -4649595.56

Total -722375850.15 -531879268.76

56. Asset Impairment Loss

Item Reporting Period Same period of last year

Inventory depreciation loss and

contract performance cost

impairment loss

-172812626.21 -197576487.91

Contractual Asset Impairment

Loss

-146807263.10

Impairment loss on long-term

equity investment

-38375298.75 -29028300.57

Impairment loss on fixed assets -947487.17

Impairment loss on goodwill -103464423.24 -76431127.34

Total -462407098.47 -303035915.82

57. Asset Disposal Income (“－” for loss)

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period

Same period of

last year

Amount recorded

in the current

non-recurring

profit or loss

Incomes from disposal of

disposal groups held for sale

Incomes from disposal of

non-current assets

206315700.34 293706640.64 206315700.34

Including: incomes from

disposal of non-current assets

not classified as the

held-for-sale assets

206315700.34 293706640.64 206315700.34

Of which: Fixed assets

disposal income

19882250.97 199562396.99 19882250.97

Intangible assets

disposal income

186433449.37 94144243.65 186433449.37

Total 206315700.34 293706640.64 206315700.34

58. Non-operating Income

（1） List of Non-operating Income

Item Reporting Period

Same Period of

last year

Amount recorded

in the current

non-recurring

profit or loss

Insurance indemnity 74801658.73

Non-current assets damage

and retirement gains

1076972.21 1076972.21

Compensation and penalty

income

55750466.90 41951152.92 55750466.90

Government subsidies

unrelated to the normal

operation of the Company

10322986.31 14692600.00 10322986.31

Gains on debt restructuring 6030592.00 14536434.36 6030592.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period

Same Period of

last year

Amount recorded

in the current

non-recurring

profit or loss

Other 13945777.99 19861542.93 13945777.99

Total 87126795.41 165843388.94 87126795.41

（2） Of which government subsidies recorded into current profit or loss:

Item Distribution entity Distribution reason Nature

Project subsidy of

Chuzhou Huike intelligent

appliance industry

investment

Chuzhou Tongsheng

Investment

Development Co. Ltd.

Subsidy for participating in Chuzhou

Huike intelligent appliance industry

investment

Subsidy

Subsidy of removal of

Anhui Konka Zhilian

Chuzhou Tongsheng

Investment

Development Co. Ltd.

Subsidy obtained for removal to

establishing Intelligent Appliances and

Equipment Industrial Park

Subsidy

Subsidies for placement of

retired soldiers

VAT relief for the placement of retired

soldiers

Subsidy

Total

(continued)

Item

Whether

subsidies

influence

the current

profits and

losses or

not

Special

subsidy or

not

Reporting

Period

Same Period of

last year

Related to

assets/relate

d to income

Project

subsidy of

Chuzhou

Huike

intelligent

appliance

industry

Not Not 10136986.31 9692600.00

Related to

income

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Whether

subsidies

influence

the current

profits and

losses or

not

Special

subsidy or

not

Reporting

Period

Same Period of

last year

Related to

assets/relate

d to income

investment

Subsidy of

removal of

Anhui Konka

Zhilian

Not Not 5000000.00

Related to

income

Subsidies for

placement of

retired

soldiers

Not Not 186000.00

Related to

income

Total 10322986.31 14692600.00

59. Non-operating Expense

Item Reporting Period

Same Period of last

year

Amount

recorded into the

current

non-recurring

profit or loss

Losses on damage and

scraping of non-current

assets

5261743.91 4445790.35 5261743.91

Compensation expense 12762989.57 9631943.32 12762989.57

Donations 7565741.38 4455618.74 7565741.38

Total 25590474.86 18533352.41 25590474.86

60. Income Tax Expense

（1） Lists of Income Tax Expense

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period Same period of

last year

Current income tax expense 259865247.09 514367217.82

Deferred income tax expense -298071552.16 -398727126.00

Total -38206305.07 115640091.82

（2） Adjustment Process of Accounting Profit and Income Tax Expense

Item Reporting Period

Profit before taxation 501867157.37

Current income tax expense accounted at

statutory/applicable tax rate

125466789.34

Influence of applying different tax rates by subsidiaries -23762554.65

Influence of income tax before adjustment -927927.53

Influence of non-taxable income -277877836.51

Influence of not deductable costs expenses and losses 42085079.82

Influence of deductable loss of unrecognized deferred

income tax assets in prior period

-31774540.17

Influence of deductable temporary difference or deductable

losses of unrecognized deferred income tax in the Reporting

Period

173029456.41

Changes in the balance of deferred income tax assets/

liabilities in previous period due to adjustment of tax rate

-319183.21

Other -44125588.57

Income tax expense -38206305.07

61. Other Comprehensive Income

Refer to “Note VI-43. Other Comprehensive Income” for details.

62. Cash Flow Statement

（1） Cash Generated from/Used in Other Operating/Investing/Financing Activities

1） Cash Generated from Other Operating Activities

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Reporting Period

Same Period of last

year

Commercial factoring accounts received 701570000.00 1350090436.53

Intercourse funds 737849254.12 88274570.49

Income from government subsidy 1171789839.65 1253240751.45

Front money and guarantee deposit 1343399027.31 1164255729.60

Interest income from bank deposits 43947377.51 31706637.33

Compensation of suppliers 56949337.80 24896023.45

Other 168111950.02 98551896.43

Total 4223616786.41 4011016045.28

2） Cash Used in Other Operating Activities

Item Reporting Period

Same Period of last

year

The commercial factoring payment (Note) 700000000.00 955963886.78

Expense for cash payment 1396622206.87 1529577152.08

Payment made on behalf 24937901.55 30691357.02

Payment for guarantee deposit cash

deposit

807211303.53 1019583946.33

Expense for bank handling charges 26997496.86 37748563.79

Energy conversation subsidy returned 89960000.00

Other 509182248.35 275060717.61

Total 3464951157.16 3938585623.61

3） Cash Generated from Other Investing Activities

Item Reporting Period

Same Period of last

year

Recovery of financial products 531953067.30 454850000.00

Recovery of entrusted loans 1669305006.07 1268950000.00

Other 521000071.70 361869168.69

Total 2722258145.07 2085669168.69

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

4） Cash Used in Other Investing Activities

Item Reporting Period

Same Period of last

year

Purchase of financial products 639160000.00 1020737610.69

Payment for entrusted loans 375578000.00

Other 342199320.83 507903146.78

Total 1356937320.83 1528640757.47

5） Cash Generated from Other Financing Activities

Item Reporting Period

Same Period of last

year

Recovery of margin deposit pledged 1139622285.43 601239942.14

Finance lease 659602970.00 417095790.00

Receiving entrusted loans 955993888.99 807263000.00

Total 2755219144.42 1825598732.14

6） Cash Used in Other Financing Activities

Item Reporting Period

Same Period of last

year

Deposit as margin for pledge 1116447153.50 1154091959.94

Repayment of entrusted loans 266946710.52 71200000.00

Finance lease 346079008.76 275515872.11

Financing expense 31573001.17 29297829.55

Other 213638809.72 93037101.26

Total 1974684683.67 1623142762.86

（2） Supplemental Information for Cash Flow Statement

Supplemental information

Reporting Period Same period of

last year

1. Reconciliation of net profit to net cash flows

generated from operating activities

Net profit 540073462.44 334936115.34

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Supplemental information

Reporting Period Same period of

last year

Add: Provision for impairment of assets 462407098.47 303035915.82

Credit impairment loss 722375850.15 531879268.76

Depreciation of fixed assets oil-gas assets and

productive living assets

319151539.89 256657385.35

Amortization of intangible assets 78424382.89 63777612.08

Amortization of long-term prepaid expenses 87717664.64 89040814.19

Losses on disposal of fixed assets intangible

assets and other long-lived assets (gains:

negative)

-206315700.34 -293706640.64

Losses on scrap of fixed assets (gains:

negative)

4184771.70 3087048.55

Losses on changes in fair value (gains: negative) -19089541.66 3005381.67

Finance costs (gains: negative) 893158757.67 837555538.04

Investment loss (gains: negative)

-2433336004.8

-1183381090.39

Decrease in deferred income tax assets (gains:

negative)

-278153255.22 -354179532.93

Increase in deferred income tax liabilities (“-”

means decrease)

-19647864.12 -45502532.99

Decrease in inventories (gains: negative) 623886945.84 -88405617.33

Decrease in accounts receivable generated from

operating activities (gains: negative)

-2928968789.7

-1524655193.77

Increase in accounts payable used in operating

activities (decrease: negative)

2369393657.77

-445715482.41

Other -36646447.27 -31376273.93

Net cash generated from/used in operating

activities

178616528.21 -1543947284.59

2. Significant investing and financing activities

without involvement of cash receipts and

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Supplemental information

Reporting Period Same period of

last year

payments

Transfer of debt to capital

Current portion of convertible corporate bonds

Fixed assets leased in by financing

3. Net increase/decrease of cash and cash

equivalent:

Ending balance of cash 4298056113.24 4493701917.22

Less: beginning balance of cash 4493701917.22 3434149481.72

Add: Ending balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase in cash and cash equivalents -195645803.98 1059552435.50

（3） Net Cash Receive from Disposal of the Subsidiaries

Item Amount

Cash or cash equivalents received in the Reporting Period from

disposal of subsidiaries in the Current Period

911058150.00

Of which: Dongguan Konka Investment 586500000.00

Chuzhou Kangxin 194820000.00

E3info 28000000.00

Chongqing Konka Real Estate 27000000.00

Chongqing Chengda 15930000.00

Morsemi 2100000.00

Zhongshan Kangao 56000000.00

Chengdu Konka Incubator 600000.00

Konka Cross-Border Technological Innovation 108150.00

Less: cash and cash equivalents held by subsidiaries on the date of

losing control power

37290851.97

Of which: Dongguan Konka Investment 2285772.79

Chuzhou Kangxin 3317421.35

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Amount

E3info 24712706.14

Chongqing Konka Real Estate 326803.37

Chongqing Chengda 138308.59

Morsemi 981084.01

Zhongshan Kangao 5505972.10

Chengdu Konka Incubator 8878.67

Konka Cross-Border Technological Innovation 13904.95

Add: Cash or cash equivalents received in the Reporting Period from

disposal of subsidiaries in the prior period

Net cash received from disposal of subsidiaries 873767298.03

（4） Cash and Cash Equivalents

Item Ending balance Beginning balance

Cash 4298056113.24 4493701917.22

Including: Cash on hand 16052.88 18699.99

Bank deposit on demand 4298040060.36 4493683217.23

Ending balance of cash and cash

equivalents

4298056113.24 4493701917.22

63. Items in the Statement of Changes in Shareholders' Equity

There is no “other” amount to adjust the amount at the end of the previous year in this

period.

64. Assets with Restricted Ownership or Right to Use

Item Ending carrying value Reason for restriction

Monetary assets 1133474067.66

Among them RMB1067872557.16 is margin deposit

pledge is used for borrowing or issuing bank acceptance

bill RMB37701403.94 is financial supervision account

fund; RMB20903555.17 is fixed deposit that can not be

withdrawn in advance; RMB6996551.39 is restricted due

to other reasons.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Ending carrying value Reason for restriction

Held-for-trading

financial assets

599160000.00

Structural deposits

Notes receivable 784732739.73

The company pledged bank acceptance bills with a book

value of RMB 784732739.73 for comprehensive

financing services such as issuing bank acceptance bills

letters of credit guarantees and trade finance.Investment property 131321568.34 For mortgage loan

Fixed assets 768741766.12 Used for mortgage loan finance lease and guarantee.

Construction in

progress

328756028.19 For mortgage loan

Intangible assets 193755559.74 For mortgage loan

Long-term

receivables

351107041.45 For pledge loan

Total 4291048771.23

65. Foreign Currency Monetary Items

（1） Foreign Currency Monetary Items

Item

Ending foreign

currency balance

Exchange

rate

Ending balance converted to

RMB

Monetary assets

Of which: USD 95989561.32 6.5249 626322288.66

EUR 12845.44 8.0250 103084.66

EGP 1013290.04 0.4159 421427.33

HKD 14902253.81 0.8416 12541736.81

PLN 854889.37 1.7519 1497680.69

Accounts receivable

Of which: USD 132221173.92 6.5249 862729937.71

EGP 4887951.32 0.4159 2032898.95

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending foreign

currency balance

Exchange

rate

Ending balance converted to

RMB

GBP 564195.30 8.8903 5015865.48

HKD 33361549.15 0.8416 28077079.76

Other receivables

Of which: USD 135938277.17 6.5249 886983664.71

EGP 5519421.05 0.4159 2295527.21

HKD 1515079.53 0.8416 1275090.93

Short-term

borrowings

Of which: USD 59159714.38 6.5249 386011220.36

Accounts payable

Of which: USD 42417352.11 6.5249 276768980.78

EUR 7752.00 8.0250 62209.80

HKD 13378276.37 0.8416 11259157.39

Other payables

Of which: EUR 40359.30 8.0250 323883.38

EGP 735934.30 0.4159 306075.08

HKD 23661059.12 0.8416 19913147.36

Interest payable

Of which: USD 99200.24 6.5249 647271.65

（2） Notes to Overseas Entities

The significant overseas entities include Hong Kong Konka Konka Electrical Appliances

International Trading Chain Kingdom Memory Technologies Kangjietong and Jiali International.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

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.

66. Government Subsidy

（1） Basic Information on Government Subsidy

Category Amount Listed items

Amount recorded

in the current

profit or loss

Supporting fund of

Chongqing Bishan project

530000000.00 Other income 530000000.00

Supporting fund of Suining

Konka Industrial Park Suining

project

245972074.00

Deferred income/Other

income

16552074.00

Rewards and subsidies 247663680.35 Other income 247663680.35

Tax rebates on software 30710313.50 Other income 30710313.50

Post subsidies 21703015.11 Other income 21703015.11

(Central 2) 8K Ultra HD

Display Chip R&D and

Industrialization Project

20000000.00 Deferred income

Chongqing Konka Land

Compensation Fund

19440000.00 Deferred income 327272.73

Support Fund of Konka

Semiconductor Chip

Packaging and Testing Project

17767345.50 Other income 17767345.50

Subsidy of plant construction

of Yibin Konka Industrial

Park project

16035384.46 Deferred income

Subsidies for L/C exports 5555574.57 Other income 5555574.57

Land tax rebates 15955706.27 Other income 15955706.27

Supporting fund of Yibin

Konka Industrial Park project

1756382.00 Other income 1756382.00

Other 67265387.77

Deferred income/Other

income/Non-operating

15790648.48

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Category Amount Listed items

Amount recorded

in the current

profit or loss

income/Financial

expenses

Total 1239824863.53 902937339.80

（2） Return of Government Subsidy

No such cases in the Reporting Period.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

VII. Changes of Consolidation Scope

1. Disposal of subsidiary

Name of the

subsidiary

The equity

disposal price

Equity

disposal

proportion

(%)

Method of

equity

disposal

Time of losing

control

Recognition basis for the time of

losing control power

The differences of enjoyed

net assets share of the

subsidiary in

corresponding

consolidated statements

of the disposal price and

the disposal investment

(RMB’0000)

Dongguan Konka

Investment

58650.00 51.00 Transfer 2020/9/25

The rights and obligations related to

the underlying equity have been

transferred

66661.40

Chuzhou Kangxin 19482.00 51.00 Transfer 2020/12/21

The rights and obligations related to

the underlying equity have been

transferred

17951.56

E3info 2800.00 20.00 Transfer 2020/11/25

The rights and obligations related to

the underlying equity have been

transferred

1238.41

Chongqing Konka Real

Estate

2700.00 18.00 Transfer 2020/11/25

The rights and obligations related to

the underlying equity have been

1839.35

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of the

subsidiary

The equity

disposal price

Equity

disposal

proportion

(%)

Method of

equity

disposal

Time of losing

control

Recognition basis for the time of

losing control power

The differences of enjoyed

net assets share of the

subsidiary in

corresponding

consolidated statements

of the disposal price and

the disposal investment

(RMB’0000)

transferred

Chongqing Chengda 1593.00 18.00 Transfer 2020/12/24

The rights and obligations related to

the underlying equity have been

transferred

846.56

Morsemi 210.00 21.00 Transfer 2020/8/30

The rights and obligations related to

the underlying equity have been

transferred

167.70

Zhongshan Kangao 5600.00 100.00 Transfer 2020/12/15

The rights and obligations related to

the underlying equity have been

transferred

1110.47

Chengdu Konka

Incubator

60.00 70.00 Transfer 2020/12/22

The rights and obligations related to

the underlying equity have been

transferred

108.24

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of the

subsidiary

The equity

disposal price

Equity

disposal

proportion

(%)

Method of

equity

disposal

Time of losing

control

Recognition basis for the time of

losing control power

The differences of enjoyed

net assets share of the

subsidiary in

corresponding

consolidated statements

of the disposal price and

the disposal investment

(RMB’0000)

Konka Cross-Border

Technological

Innovation

10.82 21.00 Transfer 2020/12/22

The rights and obligations related to

the underlying equity have been

transferred

10.21

(Continued)

Name of the

subsidiary

Residual

equity

proportion on

the date of

losing control

power (%)

Carrying value of

residual equity

on the date of

losing control

power

(RMB’0000)

Fair value of

residual equity on

the date of losing

control power

(RMB’0000)

Gains or losses from

re-measurement of

residual equity at fair

value (RMB’0000)

Recognition method

and main assumption

of fair value of

residual equity on the

date of losing control

power

Amount of other

comprehensive income

related to former

subsidiaries transferred

into investment profit or

loss (RMB’0000)

Dongguan Konka

Investment

49.00 4215.78 56350.00 52134.22 Evaluated price

Chuzhou Kangxin 49.00 1470.45 18718.00 17247.55 Evaluated price

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name of the

subsidiary

Residual

equity

proportion on

the date of

losing control

power (%)

Carrying value of

residual equity

on the date of

losing control

power

(RMB’0000)

Fair value of

residual equity on

the date of losing

control power

(RMB’0000)

Gains or losses from

re-measurement of

residual equity at fair

value (RMB’0000)

Recognition method

and main assumption

of fair value of

residual equity on the

date of losing control

power

Amount of other

comprehensive income

related to former

subsidiaries transferred

into investment profit or

loss (RMB’0000)

E3info 40.00 3123.19 5197.93 2074.74 Evaluated price

Chongqing Konka

Real Estate

33.00 1577.86 4950.00 3372.14 Evaluated price

Chongqing Chengda 33.00 1368.48 2920.50 1552.02 Evaluated price

Morsemi 30.00 60.43 300.00 239.57 Evaluated price

Zhongshan Kangao Evaluated price

Chengdu Konka

Incubator

30.00 -20.67 25.47 46.14 Evaluated price

Konka Cross-Border

Technological

Innovation

30.00 0.86 1.90 1.04 Evaluated price

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

2. Changes in Combination Scope for Other Reasons

（1）Subsidiaries Established by the Company in 2020

Name Registered capital

Shareholding

percentage (%)

Time and place

of obtaining

control power

Method of

obtaining

Suining Konka Intelligent 100000000.00 100.00 2020/12/21

Newly

established

Frestec Smart Home 50000000.00 51.00 2020/8/26

Newly

established

Jiangsu Konka Intelligent 120000000.00 51.00 2020/9/11

Newly

established

Liaoyang Kangshun

Intelligent

10000000.00 100.00 2020/5/9

Newly

established

Liaoyang Kangshun

Regeneration

50000000.00 100.00 2020/9/10

Newly

established

Nanjing Konka 10000000.00 100.00 2020/6/18

Newly

established

Gaoping Kangrun 100000000.00 48.45 2020/5/29

Newly

established

Mengcheng Kangrun 100000000.00 43.35 2020/6/19

Newly

established

Xixian Kangrun 163780500.00 26.01 2020/4/16

Newly

established

Chongzhou Kangrun 50000000.00 42.67 2020/8/28

Newly

established

Xi'an Kangrun 73710000.00 48.45 2020/8/28

Newly

established

Ankang Kangrun 100000000.00 26.01 2020/9/10

Newly

established

Changning Kangrun 50000000.00 45.89 2020/10/19

Newly

established

Linfen Kangrun 95000000.00 39.24 2020/12/30 Newly

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name Registered capital

Shareholding

percentage (%)

Time and place

of obtaining

control power

Method of

obtaining

established

Jiangsu Konka Special

Materials

100000000.00 51.00 2020/12/24

Newly

established

Chongqing Kangxingrui

Automobile Recycling

100000000.00 51.00 2020/4/17

Newly

established

Konka Xinyun

Semiconductor

100000000.00 56.00 2020/4/17

Newly

established

Yantai Kangyun Real

Estate

10000000.00 51.00 2020/11/27

Newly

established

Chongqing Kanglei

Optoelectronics

50000000.00 51.00 2020/2/27

Newly

established

Yibin Kangrun 100000000.00 83.83 2020/4/21

Newly

established

Henan Kangxin Real Estate 50000000.00 51.00 2020/8/24

Newly

established

Shenzhen Kangxin Real

Estate

50000000.00 51.00 2020/12/21

Newly

established

Henan Kanghan Real

Estate

50000000.00 51.00 2020/12/28

Newly

established

Kangshi Virtual 100000000.00 100.00 2020/9/21

Newly

established

Zhongshan Kangxin

Electronics

1000000.00 51.00 2020/6/9

Newly

established

Zhongshan Kangao 43500000.00 51.00 2020/9/3

Newly

established

Chongqing Chengda 50000000.00 51.00 2020/9/14

Newly

established

Chongqing Chunfu 50000000.00 51.00 2020/9/21

Newly

established

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name Registered capital

Shareholding

percentage (%)

Time and place

of obtaining

control power

Method of

obtaining

Chongqing Langheng 50000000.00 51.00 2020/9/23

Newly

established

Hong Kong Morsemi HKD10000.00 51.00 2020/4/20

Newly

established

（2）The situation of the company's cancellation of the distribution of remaining assets of

the subsidiary in 2020

Name Registered capital

Shareholding

percentage (%)

Liquidation

completion time

Konka Enterprise Management 5000000.00 51.00 2020/8/26

Youshi Kangrong 70000000.00 70.00 2020/7/1

Life Electric Appliance 42000000.00 75.00 2020/12/10

Commercial System Technology 12000000.00 81.00 2020/12/7

Frestec Smart 10000000.00 51.00 2020/9/27

Yuekang Semiconductor 100000000.00 100.00 2020/2/24

Kangshi Virtual 100000000.00 100.00 2020/12/28

Kangxin Technology 10000000.00 51.00 2020/11/20

Hainan Technology 100000000.00 51.00 2020/11/17

Nanjing Konka Smart 50000000.00 100.00 2020/11/17

Zhongshan Kangxin Electronic 1000000.00 51.00 2020/12/4

Boxing Xingkang Environmental 100000000.00 35.70 2020/11/19

Yantai Konka Industrial 100000000.00 89.71 2020/12/31

Shandong Kangxin 100000000.00 51.00 2020/12/24

Kanghong (Yantai) Environmental

Protection Industrial Park

10000000.00 51.00 2020/9/29

Debao New Materials 50000000.00 51.00 2020/12/7

Kangxinlong Environmental

Protection

30000000.00 100.00 2020/12/8

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

VIII. Equity in Other Entities

1. Equity in Subsidiary

（1） Subsidiaries

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

1 Konka Ventures

Shenzhen

Guangdong

Shenzhen

Guangdong

Other

organization and

management

service

Establishmen

t or

investment

2 Yantai Konka

Yantai

Shandong

Yantai

Shandong

Other

professional

consultancy and

investigation

Establishmen

t or

investment

3 Chengdu Anren

Chengdu

Sichuan

Chengdu

Sichuan

Commercial

service

Establishmen

t or

investment

Konka Enterprise

Service

Guiyang

Guizhou

Guiyang

Guizhou

Headquarters

management

Establishmen

t or

investment

Chuanghui

Intelligent

Nanjing

Jiangsu

Nanjing

Jiangsu

Entrepreneurial s

pace service

40.8

Establishmen

t or

investment

Yibin Konka

Incubator

Yibin Sichuan Yibin Sichuan

Commercial

service

Establishmen

t or

investment

7 Anhui Konka

Chuzhou

Anhui

Chuzhou

Anhui

Manufacturing

industry

Establishmen

t or

investment

8 Kangzhi Trade

Chuzhou

Anhui

Chuzhou

Anhui

Wholesale

industry

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

9 Konka Factoring

Shenzhen

Guangdong

Shenzhen

Guangdong

Insurance agents

(non-bank

finance)

100

Establishmen

t or

investment

10 Konka Unifortune

Shenzhen

Guangdong

Shenzhen

Guangdong

Retail industry 51

Establishmen

t or

investment

11 Jiali International

Hong Kong

China

Hong Kong

China

Retail industry 51

Establishmen

t or

investment

12 Wankaida

Shenzhen

Guangdong

Shenzhen

Guangdong

Software

development

100

Establishmen

t or

investment

13 Dongguan Konka

Dongguan

Guangdong

Dongguan

Guangdong

Manufacturing

industry

75 25

Establishmen

t or

investment

Suining Konka

Intelligent

Suining，Sichuan

Wholesale

industry

100

Establishmen

t or

investment

15 Konka Europe

Frankfurt

Germany

Frankfurt

Germany

International

trading

100

Establishmen

t or

investment

Konka Electrical

Appliances

Shenzhen

Guangdong

Shenzhen

Guangdong

Manufacturing

industry trading

100

Establishmen

t or

investment

Telecommunication

Technology

Shenzhen

Guangdong

Shenzhen

Guangdong

Manufacturing

industry

75 25

Establishmen

t or

investment

18 Konka Mobility

Hong Kong

China

Hong Kong

China

Manufacturing

industry

100

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

Mobile

Interconnection

Shenzhen

Guangdong

Shenzhen

Guangdong

Commerce 100

Establishmen

t or

investment

20 Sichuan Konka Yibin Sichuan Yibin Sichuan

Manufacturing

industry

100

Establishmen

t or

investment

21 Yibin Intelligent Yibin Sichuan Yibin Sichuan

Information

service

100

Establishmen

t or

investment

22 Anhui Tongchuang

Chuzhou

Anhui

Chuzhou

Anhui

Manufacturing

industry

100

Establishmen

t or

investment

Electrical Appliance

Technology

Chuzhou

Anhui

Chuzhou

Anhui

Manufacturing

industry

Establishmen

t or

investment

Frestec

Refrigeration

Xinxiang

Henan

Xinxiang

Henan

Manufacturing

industry

Establishmen

t or

investment

25 Frestec Smart Home

Xinxiang

Henan

Xinxiang

Henan

Retail industry 51

Establishmen

t or

investment

Frestec Electrical

Appliances

Xinxiang

Henan

Xinxiang

Henan

Manufacturing

industry

Establishmen

t or

investment

Frestec Household

Appliances

Xinxiang

Henan

Xinxiang

Henan

Manufacturing

industry

Establishmen

t or

investment

Jiangsu Konka

Smart

Changzhou

Jiangsu

Changzhou

Jiangsu

Electrical

machinery and

equipment

manufacturing

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

29 Kangjiatong Yibin Sichuan Yibin Sichuan Service industry 51

Establishmen

t or

investment

Pengrun

Technology

Shenzhen

Guangdong

Shenzhen

Guangdong

Retail industry 51

Establishmen

t or

investment

31 Jiaxin Technology

Hong Kong

China

Hong Kong

China

Retail industry 51

Establishmen

t or

investment

32 Dongguan Packing

Dongguan

Guangdong

Dongguan

Guangdong

Manufacturing

industry

75 25

Establishmen

t or

investment

33 E2info

Shenzhen

Guangdong

Shenzhen

Guangdong

Information

service

95.78

Establishmen

t or

investment

34 E2info (Hainan)

Haikou

Hainan

Haikou

Hainan

Information

service

95.78

Establishmen

t or

investment

Beijing Konka

Electronic

Beijing Beijing

Sale of home

appliance

100

Establishmen

t or

investment

36 Konka Leasing

Tianjin Pilot

Free Trade

Zone

Tianjin Pilot

Free Trade

Zone

Leasing industry 100

Establishmen

t or

investment

Shenzhen Konka

Circuit

Shenzhen

Guangdong

Shenzhen

Guangdong

Investment

holding

100

Establishmen

t or

investment

Boluo Konka

Precision

Boluo

Guangdong

Boluo

Guangdong

Manufacturing

industry

100

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

39 Xiamen Dalong

Xiamen

Fujian

Xiamen

Fujian

Commerce 69.23

Establishmen

t or

investment

40 Boluo Konka

Boluo

Guangdong

Boluo

Guangdong

Manufacturing

industry

100

Establishmen

t or

investment

41 Hong Kong Konka

Hong Kong

China

Hong Kong

China

International

trading

100

Establishmen

t or

investment

Konka Household

Appliances

Investment

Hong Kong

China

Hong Kong

China

Investment

holding

100

Establishmen

t or

investment

43 Chain Kingdom

Hong Kong

China

Hong Kong

China

International

trading

Establishmen

t or

investment

Chain Kingdom

Shenzhen

Guangdong

Shenzhen

Guangdong

Wholesale

industry

Establishmen

t or

investment

Hefei Chain

Kingdom

Hefei Anhui Hefei Anhui

Information

service

Establishmen

t or

investment

46 Konka Zhisheng

Hong Kong

China

Hong Kong

China

International

trading

Establishmen

t or

investment

47 Kangjietong

Hong Kong

China

Hong Kong

China

Service industry 51

Establishmen

t or

investment

Konka Household

Appliances

International

Trading

Hong Kong

China

Hong Kong

China

International

trading

100

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

KONKO

TECHNOLOGIES

CO.

Cairo Egypt Cairo Egypt

International

trading

Establishmen

t or

investment

Konka North

America LLC

California

USA

California

USA

International

trading

100

Establishmen

t or

investment

51 Konka Invstment

Shenzhen

Guangdong

Shenzhen

Guangdong

Capital markets

service

100

Establishmen

t or

investment

52 Yibin Konka Yibin Sichuan Yibin Sichuan

Development and

management of

industrial park

100

Establishmen

t or

investment

53 Konka Capital

Shenzhen

Guangdong

Shenzhen

Guangdong

Capital markets

service

100

Establishmen

t or

investment

54 Konka Suiyong

Shenzhen

Guangdong

Shenzhen

Guangdong

Investment in

industry

commercial

information

consultancy and

investment

advisor

Establishmen

t or

investment

Kangquan

Enterprise

Shenzhen

Guangdong

Shenzhen

Guangdong

Commercial

service

Establishmen

t or

investment

56 Konka Suyuan

Shenzhen

Guangdong

Shenzhen

Guangdong

Commercial

service

Establishmen

t or

investment

Shengxing

Enterprise

Shenzhen

Guangdong

Shenzhen

Guangdong

Commercial

service

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

Industrial Park

Development

Shenzhen

Guangdong

Shenzhen

Guangdong

Commercial

service

Establishmen

t or

investment

59 Zhitong Technology

Shenzhen

Guangdong

Shenzhen

Guangdong

Software and

information

technology

service

Establishmen

t or

investment

Electronics

Technology

Shenzhen

Guangdong

Shenzhen

Guangdong

Manufacturing

industry

100

Establishmen

t or

investment

61 Anhui Zhilian

Chuzhou

Anhui

Chuzhou

Anhui

Electronic

commerce

100

Establishmen

t or

investment

62 Youzhihui

Shenzhen

Guangdong

Shenzhen

Guangdong

Software and

information

technology

service industry

100

Establishmen

t or

investment

63 Xiaojia Technology

Shenzhen

Guangdong

Shenzhen

Guangdong

Retail industry 100

Establishmen

t or

investment

64 Haimen Konka

Nantong

Jiangsu

Nantong

Jiangsu

Wholesale and

retail industry

100

Establishmen

t or

investment

Chengdu Konka

Intelligent

Chengdu

Sichuan

Chengdu

Sichuan

Wholesale and

retail industry

100

Establishmen

t or

investment

Chengdu Konka

Electronic

Chengdu

Sichuan

Chengdu

Sichuan

Manufacturing

industry

100

Establishmen

t or

investment

67 XingDa HongYe

Zhongshan

Guangdong

Zhongshan

Guangdong

Manufacturing

industry

Establishmen

t or

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

investment

68 Shanghai Xinfeng Shanghai Shanghai Commerce 51

Establishmen

t or

investment

Liaoyang Kangshun

Intelligent

Technology

Liaoyang

Liaoning

Liaoyang

Liaoning

Wholesale

industry

100

Establishmen

t or

investment

Liaoyang Kangshun

Renewable

Resources

Liaoyang

Liaoning

Liaoyang

Liaoning

Comprehensive

utilization of

waste resources

100

Establishmen

t or

investment

71 Nanjing Konka

Nanjing

Jiangsu

Nanjing

Jiangsu

Wholesale

industry

100

Establishmen

t or

investment

72 Yantai Laikang

Yantai

Shandong

Yantai

Shandong

Commercial

service

Establishmen

t or

investment

73 Econ Technology

Yantai

Shandong

Yantai

Shandong

Environmental

technology

service industry

Establishmen

t or

investment

74 Beijing Kangyi Beijing Beijing

Environmental

technology

service industry

Establishmen

t or

investment

75 Shanghai Jiyi Shanghai Shanghai

Environmental

technology

service industry

Establishmen

t or

investment

76 Binzhou Econ

Binzhou

Shandong

Binzhou

Shandong

Environmental

technology

service industry

Establishmen

t or

investment

77 Lairun Holdings

Yantai

Shandong

Yantai

Shandong

Environmental

technology

30.6

Establishmen

t or

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

service industry investment

Lairun

Environmental

Protection

Yantai

Shandong

Yantai

Shandong

Environmental

technology

service industry

27.54

Establishmen

t or

investment

Laizhou Lairun

Sewage Treatment

Yantai

Shandong

Yantai

Shandong

Environmenal

protection and

environment

management

24.14

Establishmen

t or

investment

Binhai Sewage

Treatment

Yantai

Shandong

Yantai

Shandong

Environmental

technology

service industry

30.6

Establishmen

t or

investment

Econ

Environmental

Engineering

Chengdu

Sichuan

Chengdu

Sichuan

Environmental

technology

service industry

Establishmen

t or

investment

82 Rushan Yike

Weihai

Shandong

Weihai

Shandong

Environmental

technology

service industry

44.37

Establishmen

t or

investment

83 Binzhou Weiyijie

Binzhou

Shandong

Binzhou

Shandong

Environmental

technology

service industry

35.7

Establishmen

t or

investment

84 Beihai Jingmai

Binzhou

Shandong

Binzhou

Shandong

Environmental

technology

service industry

24.99

Establishmen

t or

investment

85 Yantai Chunzhiran

Yantai

Shandong

Yantai

Shandong

Environmental

technology

service industry

35.7

Establishmen

t or

investment

86 Donggang Kangrun

Dandong

Liaoning

Dandong

Liaoning

Environmental

technology

service industry

50.7

Establishmen

t or

investment

Kangrunhong

Environmental

Yantai Yantai

Environmental

technology

Establishmen

t or

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

Protection Shandong Shandong service industry investment

Dayi Kangrun

Water

Chengdu

Sichuan

Chengdu

Sichuan

Environmental

technology

service industry

Establishmen

t or

investment

Suining Pengxi

Kangrun

Suining

Sichuan

Suining

Sichuan

Environmental

technology

service industry

40.75

Establishmen

t or

investment

Subei Kangrun

Water

Jiuquan

Gansu

Jiuquan

Gansu

Environmental

technology

service industry

39.78

Establishmen

t or

investment

Weifang Sihai

Kangrun

Weifang

Shandong

Weifang

Shandong

Environmental

technology

service industry

32.09

Establishmen

t or

investment

Lushan Kangrun

Environmental

Protection

Pingdingshan

Henan

Pingdingshan

Henan

Environmental

protection and

environment

management

45.44

Establishmen

t or

investment

Funan Kangrun

Water

Fuyang Anhui Fuyang Anhui

Environmental

protection and

environment

management

40.55

Establishmen

t or

investment

Wuhan Runyuan

Sewage Treatment

Wuhan Hubei Wuhan Hubei

Environmental

protection and

environment

management

35.7

Establishmen

t or

investment

Tongchuan Kangrun

Honghui

Tongchuan

Shaanxi

Tongchuan

Shaanxi

Environmental

protection and

environment

management

45.39

Establishmen

t or

investment

Tingyuan

Environmental

Shanghai Shanghai

Research and

experimental

Establishmen

t or

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

Protection development investment

97 Gaoping Kangrun

Jincheng

Shanxi

Jincheng

Shanxi

Ecological

protection and

environmental

governance

industry

48.45

Establishmen

t or

investment

Mengcheng

Kangrun

Bozhou Anhui Bozhou Anhui

Water

conservancy

management

industry

43.35

Establishmen

t or

investment

99 Xi Xian Kangrun

Xi Xian New

Area Shaanxi

Xi Xian New

Area Shaanxi

Public facilities

management

industry

26.01

Establishmen

t or

investment

100

Chongzhou

Kangrun

Chongzhou

Sichuan

Chongzhou

Sichuan

Ecological

protection and

environmental

management

industry

42.67

Establishmen

t or

investment

101 Xi 'an Kangrun Xi'an Shaanxi Xi'an Shaanxi

Ecological

protection and

environmental

management

industry

48.45

Establishmen

t or

investment

102 Ankang Kangrun

Ankang

Shaanxi

Ankang

Shaanxi

Ecological

protection and

environmental

management

industry

26.01

Establishmen

t or

investment

103 Changning Kangrun

Hengyang

Hunan

Hengyang

Hunan

Water production

and supply

industry

45.89

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

104 Bokang Renewable

Yantai

Shandong

Yantai

Shandong

Internet and

related services

26.01

Establishmen

t or

investment

105 Linfen Kangrun Linfen Shanxi Linfen Shanxi

Water production

and supply

industry

39.24

Establishmen

t or

investment

106 Konka Huanjia

Dalian

Liaoning

Dalian

Liaoning

Processing of

renewable

resources

Establishmen

t or

investment

107

Konka Huanjia

(Henan)

Lankao

Henan

Lankao

Henan

Technology

extension and

application

service industry

Establishmen

t or

investment

108 Shanghai Konka Shanghai Shanghai

Real estate

industry

100

Establishmen

t or

investment

109 Yantai Kangjin

Yantai

Shandong

Yantai

Shandong

Real estate

industry

0 62.80

Establishmen

t or

investment

110 Jiangxi Konka

Jiujiang

Jiangxi

Jiujiang

Jiangxi

Production

manufacturing

and processing

Establishmen

t or

investment

111

Xinfeng

Microcrystalline

Nanchang

Jiangxi

Nanchang

Jiangxi

Production

manufacturing

and processing

Establishmen

t or

investment

112 Nanocrystalline

Jiujiang

Jiangxi

Jiujiang

Jiangxi

Production

manufacturing

and processing

Establishmen

t or

investment

113

Jiangsu Konka

Special Materials

Jiangsu Yancheng

Wholesale

industry

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

114 Shenzhen Nianhua

Shenzhen

Guangdong

Shenzhen

Guangdong

Commercial

service

100

Establishmen

t or

investment

115

Shenzhen

Kangxinwei

Shenzhen

Guangdong

Shenzhen

Guangdong

Semi-conductor 100

Establishmen

t or

investment

116 Hefei Kangxinwei Hefei Anhui Hefei Anhui

Design of

integrated circuit

Establishmen

t or

investment

117 Yihe Electronic Hefei Anhui Hefei Anhui

Wholesale

industry

Establishmen

t or

investment

118 Chongqing Konka Chongqing Chongqing

Software and

information

technology

service

100

Establishmen

t or

investment

119

Shenzhen Huiying

Technology

Shenzhen

Guangdong

Shenzhen

Guangdong

Wholesale

industry

Establishmen

t or

investment

120

Chongqing Huiying

Technology

Chongqing Chongqing

Manufacturing

industry in

computer

communication

and other

electronic

equipment

Establishmen

t or

investment

121

Konkan Ecological

Development

Shenzhen

Guangdong

Shenzhen

Guangdong

Commercial

service

Establishmen

t or

investment

122

Suining Konka

Industrial Park

Suining

Sichuan

Suining

Sichuan

Industrial park

development and

100

Establishmen

t or

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

operation

management

investment

123 Konka Integration

Jiaxing

Zhejiang

Jiaxing

Zhejiang

Wholesale and

retail industry

Establishmen

t or

investment

124

Suining Electronic

Technological

Innovation

Suining

Sichuan

Suining

Sichuan

Commercial

service

100

Establishmen

t or

investment

125

Shenzhen

Chuangzhi

Appliances

Shenzhen

Guangdong

Shenzhen

Guangdong

Wholesale

industry

100

Establishmen

t or

investment

126

Koanghong (Yantai)

Environmental

Protection

Yantai

Shandong

Yantai

Shandong

Comprehensive

utilization of

waste resources

industry

Establishmen

t or

investment

127

Chongqing

Kangxingrui

Chongqing Chongqing

Technology

extension and

application

service industry

Establishmen

t or

investment

128

Chongqing

Kangxingrui

Automobile

Recycling

Chongqing Chongqing

Wholesale

industry

Establishmen

t or

investment

129

Chongqing Konka

Photoelectric

Technology

Research Institute

Chongqing Chongqing

Research and

experimental

development

Establishmen

t or

investment

130

Xinying

Semiconductor

Shenzhen

Guangdong

Shenzhen

Guangdong

Manufacturing

industry in

computer

communication

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

and other

electronic

equipment

131

Konka Xinyun

Semiconductor

Yancheng

Jiangsu

Yancheng

Jiangsu

Computer

communications

and other

electronic

equipment

manufacturing

Establishmen

t or

investment

132

Jiangkang

(Shanghia)

Technology

Shanghai Shanghai

Research and

experimental

development

Establishmen

t or

investment

133

Ningbo Kanghanrui

Appliances

Ningbo

Zhejiang

Ningbo

Zhejiang

Electrical

machinery and

equipment

manufacturing

Establishmen

t or

investment

134 Konka Zhizao

Shenzhen

Guangdong

Shenzhen

Guangdong

Research and

experimental

development

Establishmen

t or

investment

135

Suining Jiarun

Properties

Suining

Sichuan

Suining

Sichuan

Real estate

industry

100

Establishmen

t or

investment

136 Yantai Kangyun

Yantai

Shandong

Yantai

Shandong

Commercial

service

Establishmen

t or

investment

137

Yantai Kangyun

Real Estate

Yantai

Shandong

Yantai

Shandong

Real estate

industry

Establishmen

t or

investment

138

Chongqing Kanglei

Optoelectronic

Chongqing Chongqing

Computer

communications

and other

Establishmen

t or

investment

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Serial

numb

Name

Main

operating

place

Registration

place

Nature of

business

Holding percentage

(%)

Way of

gaining

Directly Indirectly

electronic

equipment

manufacturing

139 Yibin Kangrun Yibin Sichuan Yibin Sichuan Retail industry 67 16.83

Establishmen

t or

investment

140

Henan Kangxin

Real Estate

Xinxiang

Henan

Xinxiang

Henan

Real estate

industry

Establishmen

t or

investment

141 Konka Material

Haikou

Hainan

Haikou

Hainan

Commercial

service

Establishmen

t or

investment

142

Shenzhen Kangxin

Real Estate

Shenzhen

Guangdong

Shenzhen

Guangdong

Real estate

industry

Establishmen

t or

investment

143

Henan Kanghan

Real Estate

Xinxiang

Henan

Xinxiang

Henan

Real estate

industry

Establishmen

t or

investment

Note: The indirect shareholding of the Company shall be the penetration ratio of the subsidiary

enjoyed by the Company at the consolidation level and belongs to the final equity share of the

subsidiary enjoyed by the Company.

（2） Significant Non-wholly-owned Subsidiary

Name Shareholdi The profit or loss Declaring Balance of

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

proportion

non-contro

lling

interests

(%)

attributable to

the

non-controlling

interests

dividends

distributed

non-controll

ing interests

non-controlling

interests at the

period-end

Econ Technology 49.00% 175727753.55 1006599295.10

Chain Kingdom Memory

Technologies

49.00% 15320687.02 62712463.12

Notes to the Financial Statements of Konka Group Co. Ltd.January 1 2020 to December 31 2020

(Unless otherwise specified the notes to this financial statement are all listed in RMB)

（3） The Main Financial Information of Significant Not Wholly-owned Subsidiary

Name

Ending balance

Current assets

Non-current

assets

Total assets Current liabilities

Non-current

liability

Total liabilities

Econ Technology 4462132589.77 8755726357.81 13217858947.58 8703704732.25 2962052834.96 11665757567.21

Chain Kingdom

Memory Technologies

1222933011.37 515766.12 1223448777.49 1095464158.88 1095464158.88

(Continued)

Name

Beginning balance

Current assets

Non-current

assets

Total assets Current liabilities

Non-current

liability

Total liabilities

Econ Technology 2301862406.07

4188510893.2

6490373299.31 4112410680.62 1228550874.55 5340961555.17

Chain Kingdom Memory

Technologies

1589255895.39 681653.19 1589937548.58 1485611244.88 1485611244.88

(Continued)

Name Reporting Period

Notes to the Financial Statements of Konka Group Co. Ltd.January 1 2020 to December 31 2020

(Unless otherwise specified the notes to this financial statement are all listed in RMB)

Operating revenue Net profit

Total comprehensive

income

Cash flows from

operating activities

Econ Technology 3272636835.33 320737166.02 320737166.02 -571785929.67

Chain Kingdom Memory Technologies 8261027364.98 31266708.21 23658314.91 -66646309.67

(Continued)

Name

Same period of last year

Operating revenue Net profit

Total comprehensive

income

Cash flows from

operating activities

Econ Technology 2089742540.39 257946089.57 257946089.57 -255466347.95

Chain Kingdom Memory Technologies 7255440615.91 57623214.42 60113821.08 -3025942.67

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

2. Changes in the share of owners' equity in subsidiaries this year have no impact on equity.

3. Equity in Joint Ventures or Associated Enterprises

（1） Significant Joint Ventures or Associated Enterprises

Name

Main

operat

ing

place

Regi

strati

place

Nature of

business

Holding

percentage

(%)

Accounting

treatment of

the

investment to

joint venture

or associated

enterprise

Direct

Indir

ectly

Dongfang Konka No.1

(Zhuhai) Private Equity

Investment Fund (LP)

Zhuhai

Zhuh

Investment

manageme

49.95

Equity

method

Chutian Dragon Co. Ltd.

Dongg

uan

Dong

guan

Electronic

Equipment

Manufactur

ing

20.00

Equity

method

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Binzhou Beihai Weiqiao Solid

Waste Disposal Co. Ltd.

Binzh

Binz

hou

Environme

ntal

protection

and

environmen

tal

manageme

49.00

Equity

method

（2） Main Financial Information of Significant Associated Enterprise

Item

Ending balance/Reporting Period

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon Co.

Ltd.

Binzhou Beihai

Weiqiao Solid Waste

Disposal Co. Ltd.

Current assets 686710061.46 1379255401.46 287246826.69

Non-current assets 265580626.48 178087639.51

Total assets 686710061.46 1644836027.94 465334466.20

Current liabilities 285530.00 541529388.70 87098339.17

Non-current liability 25206327.43

Total liabilities 285530.00 566735716.13 87098339.17

Equity of -3256204.02

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance/Reporting Period

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon Co.

Ltd.

Binzhou Beihai

Weiqiao Solid Waste

Disposal Co. Ltd.

non-controlling interests

Equity attributable to

shareholders of the

Company as the parent

686424531.46 1081356515.83 378236127.03

Share of net assets

accounted by

shareholding percentage

336170619.84 236744836.67 185335702.24

Adjustment items

-Goodwill 413461970.35

-Unrealized profit of

internal transaction

-2535163.18

Others -134510.81

Book value of equity

investment in joint

venture

336170619.84 650206807.02 182666028.25

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance/Reporting Period

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon Co.

Ltd.

Binzhou Beihai

Weiqiao Solid Waste

Disposal Co. Ltd.

Fair value of equity

investment of joint

venture with public offer

Operating revenue 1025155857.95 220586264.46

Finance costs -257638.57 -4018451.37 -82236.61

Income tax expense 14153788.28 -2050943.53

Net profit 84878495.25 96798712.97 130067221.02

Net profit from

discontinued operations

Other comprehensive

income

Total comprehensive 84878495.25 96798712.97 130067221.02

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending balance/Reporting Period

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon Co.

Ltd.

Binzhou Beihai

Weiqiao Solid Waste

Disposal Co. Ltd.

income

Dividends received from

the joint venture in the

current year

9240000.00 10300000.00

(Continued)

Item

Beginning balance/Same period of last year

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon

Co. Ltd.

Binzhou Beihai

Weiqiao Solid

Waste Disposal

Co. Ltd.

Current assets 632869229.53 1243797727.50 168736029.14

Non-current assets 290274962.74 182046220.08

Total assets 632869229.53 1534072690.24 350782249.22

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Beginning balance/Same period of last year

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon

Co. Ltd.

Binzhou Beihai

Weiqiao Solid

Waste Disposal

Co. Ltd.

Current liabilities 44259288.94 485651089.30 72613343.21

Non-current liability 25018287.84

Total liabilities 44259288.94 510669377.14 72613343.21

Equity of non-controlling

interests

Equity attributable to

shareholders of the Company

as the parent

588609940.59 1023403313.10 278168906.01

Share of net assets accounted

by shareholding percentage

310024401.51 222599666.35 136302763.94

Adjustment items

-Goodwill 413461970.35

-Unrealized profit of internal

transaction

-2535163.18

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Beginning balance/Same period of last year

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon

Co. Ltd.

Binzhou Beihai

Weiqiao Solid

Waste Disposal

Co. Ltd.

Others -134510.81

Book value of equity

investment in joint venture

310024401.51 636061636.70 133633089.95

Fair value of equity

investment of joint venture

with public offer

Operating revenue 1182099672.38 291745561.77

Finance costs -12631.40 -2473856.91 420534.06

Income tax expense 344172.57 16916284.79

Net profit 94882517.71 117058262.27 201212689.88

Net profit from discontinued

operations

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Beginning balance/Same period of last year

Dongfang Konka

No.1 (Zhuhai)

Private Equity

Investment Fund

(LP)

Chutian Dragon

Co. Ltd.

Binzhou Beihai

Weiqiao Solid

Waste Disposal

Co. Ltd.

Other comprehensive income

Total comprehensive income 94882517.71 117058262.27 201212689.88

Dividends received from the

joint venture in the current

year

11088000.00 24500000.00

（3） Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises

Item

Ending

balance/Reportin

g Period

Beginning

balance/The

Same period of

last year

Associated enterprise:

Total carrying value of investment 3637302366.34 3249236533.91

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending

balance/Reportin

g Period

Beginning

balance/The

Same period of

last year

The total of following items according to the

shareholding proportions

--Net profit -32617474.82 431670.21

--Other comprehensive income 1486737.16 -335456.79

--Total comprehensive income -31130737.66 96213.42

IX. The Risk Related to Financial Instruments

The Company’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. Risks related to these financial instruments and risk management policies the

Company has adopted to reduce these risks are described as follows. The Company management manages and monitors the risk exposure in order to ensure

the above risks to be controlled in a limited scope.

1. Various Risk Management Objectives and Policies

The goals of the Company engaged in the risk management is to achieve the proper balance between the risks and benefits reduced the negative impact

to the Company operating performance risk to a minimum maximized the profits of shareholders and other equity investors. Based on the risk management

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

goal the basic strategy of the Company's risk management is determine and analyze the various risks faced by the Company set up the bottom line of risk and

conducted appropriate risk management and timely supervised various risks in a reliable way and controlled the risk within the range of limit.

（1）Market Risk

1）Foreign Exchange 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 Company is

related to USD. Except the procurement and sales by USD for several subsidiaries of the Company the other main businesses of the Company were settled by

RMB. The foreign exchange risks produced by the assets and liabilities balance may affect the business performance of the Company. As of December 31

2020 except for the assets or liabilities mentioned in the table below the assets and liabilities of the Company are mainly the balance of RMB.

Item Period-end Period-begin

Cash and cash

equivalents

95989561.32 161346670.90

Accounts receivable 132221173.92 118602602.84

Other receivables 135938277.17 6281335.37

Interest receivables

Short-term

borrowings

59159714.38 98297903.18

Accounts payable 42417352.11 42269219.38

Interest payable 99200.24 275923.30

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

The company pays close attention to the impact of exchange rate changes on the company'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 Company bears interest rate risk due to interest rate changes of interest bearing financial assets and liabilities. The Company's interest bearing

financial assets are mainly bank deposits of which the variable interest rate is mostly short-term while the interest bearing financial liabilities are mainly bank

loans and corporate bonds. The Company's long-term bank borrowings and corporate bonds are fixed interest rates. Therefore it is considered that the risk

caused by the change of interest rate is mainly related to the short-term bank borrowings. The Company's policy is to maintain the floating interest rate of

these borrowings in order to eliminate the fair value risk of interest rate changes. On December 31 2019 the balance of such short-term borrowings is RMB

10990550475.78.

（2）Credit Risk

As of December 31 2020 the maximum credit risk exposure that may cause financial losses to the Company mainly came from losses generated from

the Company’s financial assets due to failure of the other party in a contract to perform its obligations and the financial guarantee undertaken by the Company

including:

The carrying amount of financial assets recognized 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 company 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 company reviews the recovery of each single receivable on

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

each balance sheet date to ensure that sufficient bad debt provision is made for the unrecoverable amount. Therefore the company's management believes that

the company's credit risk has been greatly reduced.The company's working capital is deposited in banks with high credit rating so the credit risk of working capital is low.The Company 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 Company has no other major credit concentration risk. For the financial assets of the Company 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 company is unable to fulfill its financial obligations on the due date. The Company 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 Company’s reputation. In

order to mitigate the liquidity risk the management of the company has carried out a detailed inspection on the liquidity of the company including the

maturity of accounts payable and other payables bank credit line and bond financing. The conclusion is that the company has sufficient funds to meet the

needs of the group's short-term debt and capital expenditure.The analysis of the financial assets and financial liabilities held by the Company based on the maturity period of the undiscounted remaining contractual

obligations is as follows:

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Amount on December 31 2020:

Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total

Financial assets

Monetary assets 5431530180.90 5431530180.90

Held-for-trading financial

assets

618249541.66 618249541.66

Notes receivable 2358180193.96 2358180193.96

Accounts receivable 2569915591.31 897205290.70 433321830.59 454911.00 3900897623.59

Other receivables 1573166227.32 421239674.89 126426976.91 24903761.48 2145736640.60

Long-term receivables 37310158.82 48853780.97 56233905.16 294409517.90 436807362.85

Other current assets 1913146483.39 1913146483.39

Financial liabilities

Short-term borrowings

10990550475.7

10990550475.78

Notes payable 1335987026.21 1335987026.21

Accounts payable 8134924659.58 1279766515.39 217675150.79 9632366325.76

Other payables 1656395339.19 89458935.79 253576624.71 1999430899.69

Payroll payable 476616244.45 476616244.45

Current portion of non-current 376896566.29 376896566.29

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total

liabilities

Long-term borrowings 18150000.00 2687210000.00 478624612.32 2798914385.22 5982898997.54

Bonds payable 4993212788.32 4993212788.32

Long-term payables 358746566.29 325321841.94 156088008.02 840156416.25

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

2. Sensitivity Analysis

The Company 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:

Item

Change in the

exchange rate

2020

Impact on net profit Impact on shareholders’ equity

USD

Appreciation of 1%

against RMB

16211942.87 13375843.78

USD

Depreciation of 1%

against RMB

-16211942.87 -13375843.78

（2）Sensitivity analysis of interest rate risk

The sensitivity analysis of interest rate risk is based on the following assumptions:

Changes in market interest rates affect the interest income or expenses of financial

instruments with variable interest rates;

For financial instruments with fixed interest rates measured at fair value changes in market

interest rates only affect their interest income or expenses;

The fair value changes of derivative financial instruments and other financial assets and

liabilities are calculated with the market interest rate on the balance sheet date and the DCF

(discounted cash flow) method.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:

Item Change in 2020

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

the interest

rate

Impact on net profit

Impact on shareholders’

equity

Borrowings with

a floating rate

Up by 0.5% 41364032.83 39778444.84

Borrowings with

a floating rate

Down by

0.5%

-41364032.83 -39778444.84

X. The Disclosure of Fair Value

1. Ending Fair Value of Assets and Liabilities at Fair Value

Item

Ending fair value

Fair

value

measure

ment

items at

level 1

Fair value

measurement

items at level 2

Fair value

measurement

items at level 3

Total

I. Consistent fair value

measurement

618249541.66 618249541.66

(I) Trading financial assets

1. Financial assets at fair value

through profit or loss

(1) Debt instrument investment

(2) Equity instrument investment

(3) Derivative financial assets

(4) Structured deposits 618249541.66 618249541.66

(II) Accounts receivable financing 84057197.44 84057197.44

(III) Investment in other debt

obligations

(IV) Other equity instrument

investment

25343293.16 25343293.16

(V) Other non-current financial assets 1878154796.73 1878154796.73

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item

Ending fair value

Fair

value

measure

ment

items at

level 1

Fair value

measurement

items at level 2

Fair value

measurement

items at level 3

Total

Total assets of consistent fair value

measurement

2521747631.55 2521747631.55

Total liabilities of consistent fair

value measurement

Total assets of inconsistent fair

value measurement

Total liabilities of inconsistent fair

value measurement

2. Basis for Determining the Market Prices of Consistent and Inconsistent Fair Value

Measurement Items at Level 1

Input value at Level 1 is the unadjusted quotation in the active market of the same assets or

liabilities that can be obtained on the measurement date.

3. Valuation Technique Adopted and Qualitative and Quantitative Information of

Important Parameters for Consistent and Inconsistent Fair Value Measurement Items at

Level 2

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. Valuation Technique Adopted and Qualitative and Quantitative Information of

Important Parameters for Consistent and Inconsistent Fair Value Measurement Items at

Level 3

Input value at Level 3 is the input value unobservable of relevant assets or liabilities.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

XI. Related Party and Related-party Transaction

(I) Relationship of Related Party

1. Controlling Shareholder and the Ultimate Controller

（1） Controlling Shareholder and the Ultimate Controller

Name

Registrati

on place

Nature

capital

Shareholding

ratio to the

Company (%)

Voting right

ratio to the

Company

(%)

OCT Group Co.

Ltd.Shenzhen

Tourism real

estate

electronics

industry

RMB12

billion

29.999997 29.999997

Note: The ultimate controller of the Company is State-owned Assets Supervisor Commission

of the State Council.

（2） The Registered Capital of the Controlling Shareholder and its Changes

Controlling

shareholder

Beginning balance

Increa

Decre

ase

Ending balance

OCT Group Co. Ltd. 12000000000.00 12000000000.00

（3） Controlling Shareholders’ Shares or Equity and their Changes

Controlling shareholder Shareholding amount Shareholding ratio (%)

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Ending

balance

Beginning

balance

Percentage

at the end of

the year

Percentage at

the beginning

of the year

OCT Group Co. Ltd. 722383542.00 722383542.00 29.999997 29.999997

2. Subsidiary

Refer to note VIII-1(1) Subsidiaries for the information of subsidiaries.

3. Associated Enterprises and Joint Ventures

Refer to Note VIII-3. (1) Significant Associated Enterprises for details of significant

associated enterprises of the Company. Information on other joint ventures or associated

enterprises occurring connected transactions with the Company in Reporting Period or forming

balance due to connected transactions made in previous period:

Name Relationship with the Company

Puchuang Jiakang Technology Co Ltd. Associated enterprise

Dongguan Konka Electronic Smart Technology

Co. Ltd.

Associated enterprise

Shenzhen Konka E-display Co. Ltd. Associated enterprise

Wanjun Technology (Kunshan) Co. Ltd. Associated enterprise

E3info (Hainan) Technology Co. Ltd. Associated enterprise

Shenzhen Konka Information Network Co. Ltd. Associated enterprise

Anhui Kaikai Sihjie E-commerce Co. Ltd. Associated enterprise

Shenzhen Konka Smart Electric Appliances

Technology Co. Ltd.

Associated enterprise

Shandong Konka Smart Electrical Appliance

Co. Ltd.

Associated enterprise

Henan Konka Smart Electrical Appliance Co.Ltd.

Associated enterprise

Shenzhen Yaode Technology Co. Ltd. Associated enterprise

Heilongjiang Longkang Smart Electrical

Appliance Co. Ltd.

Associated enterprise

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name Relationship with the Company

Binzhou Beihai Weiqiao Solid Waste Treatment

Co. Ltd.

Associated enterprise

Chongqing Qingjia Electronics Co. Ltd. Associated enterprise

Chuzhou Kangxin Health Industry Development

Co. Ltd.

Associated enterprise

Dongguan Konka Investment Co. Ltd. Associated enterprise

Shenzhen Jielunte Technology Co. Ltd. Associated enterprise

Feidi Technology (Shenzhen) Co. Ltd. and its

subsidiaries

Associated enterprise

Shenzhen RF-LINK Technology Co. Ltd Associated enterprise

4. Information on Other Related Parties

Name Relationship with the Company

Chuzhou Hanshang Electric Appliance Co.

Ltd.Minority shareholder of subsidiary

Shenzhen Jinzhu Industry Co. Ltd Minority shareholder of subsidiary

HOHOELECTRICAL&FURNITURECO.LIM

ITED

Minority shareholder of subsidiary

Shenzhen Trade Link Supply Chain

Management Co. Ltd.Minority shareholder of subsidiary

Huanjia Group Co. Ltd Minority shareholder of subsidiary

AUJET INDUSTRY LIMITED Minority shareholder of subsidiary

Handian Group Co. Ltd. Minority shareholder of subsidiary

Chongqing Liangshan Industrial Investment

Co. Ltd.

Minority shareholder of subsidiary

Shenzhen Unifortune Supply Chain

Management Co. Ltd

Minority shareholder of subsidiary

Shenzhen Musen Industrial Co. Ltd. Minority shareholder of subsidiary

Yantai Baijiangyuan Enterprise Management

Center (Limited Partnership)

Minority shareholder of subsidiary

Yantai Fengqingtai Investment Center (Limited

Partnership)

Minority shareholder of subsidiary

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name Relationship with the Company

Yantai Qingrunyuan Enterprise Management

Center (Limited Partnership)

Minority shareholder of subsidiary

Yantai Qingjiangchuan Enterprise Management

Center (Limited Partnership)

Minority shareholder of subsidiary

Hu Zehong Minority shareholder of subsidiary

Chuzhou State-owned Assets Operation Co.

Ltd.Minority shareholder of subsidiary

Shenzhen Guoxin Microelectronics Co. Ltd. Minority shareholder of subsidiary

Yudong Environmental Technology Co. Ltd. Minority shareholder of subsidiary

Shenzhen Henglongtong Electronic

Technology Co. Ltd.Minority shareholder of subsidiary

Guizhou Huajinrun Technology Group Co.Ltd.Minority shareholder of subsidiary

Wu Guoren Minority shareholder of subsidiary

Econ Holdings (Yantai) Co. Ltd. Minority shareholder of subsidiary

Zhu Xinming Minority shareholder of subsidiary

Liang Ruiling Minority shareholder of subsidiary

Dai Yaojin Minority shareholder of subsidiary

Xiao Yongsong Minority shareholder of subsidiary

Unifortune (Hong Kong) Co. Ltd.

Companies controlled by minority

shareholders of subsidiaries

Haiying Technology Group (Hong Kong) Co.Ltd.The company controlled by the ultimate

controller of the minority shareholders of the

subsidiary

Chongqing Lvfeng Renewable Resources Co.

Ltd.The company controlled by the ultimate

controller of the minority shareholders of the

subsidiary

Jiangxi Meiji Enterprise Co. Ltd.The company controlled by the ultimate

controller of the minority shareholders of the

subsidiary

Chongqing Ruiyin Renewable Resources Co.

Ltd.The ultimate controller of the minority

shareholders of the subsidiary

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name Relationship with the Company

Shenzhen Junxing Communication Technology

Co. Ltd.

Companies controlled by directors of

subsidiaries

Shenzhen Konka Yifang Technology Co. Ltd. Affiliated subsidiary

Zhanxiang Electronic Technology Co. Ltd. Affiliated subsidiary

Chongqing Konka Fuze Real Estate Co. Ltd. Affiliated subsidiary

Chuzhou Kangjin Health Industry

Development Co. Ltd.

Participating company

Dai Rongxing

Close family members of minority

shareholders

Hu Jiawen

Close family members of minority

shareholders

(II) Related-party Transactions

1. Related transactions of purchase and sale of goods provision and acceptance of

services

（1） Purchasing goods/receiving services

Related party Content Reporting Period

Same period of

last year

Haiying Technology Group (Hong

Kong) Co. Ltd.Purchase of

goods

6855261976.07 1816674632.68

Chongqing Lvfeng Renewable

Resources Co. Ltd.Purchase of

goods and

services

1309805108.45

Chuzhou Hanshang Electric Appliance

Co. Ltd.

Purchase of

goods

698636167.54 966302431.62

Puchuang Jiakang Technology Co Ltd.Purchase of

goods

373695088.37 48793853.67

Shenzhen Jielunte Technology Co.Ltd.Purchase of

goods

90173202.26 163434289.73

Shenzhen Jinzhu Industry Co. Ltd

Purchase of

goods

62584789.34 29039118.22

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Related party Content Reporting Period

Same period of

last year

OCT Group Co. Ltd. and its

subsidiaries and associated enterprises

Purchase of

goods and

services

31079892.62 19021005.05

Chongqing Ruiyin Renewable

Resources Co. Ltd.Purchase of

goods and

services

55093641.50

HOHOELECTRICAL&FURNITURE

CO.LIMITED

Purchase of

goods

50041528.06

Dongguan Konka Electronics Smart

Technology Co. Ltd.Purchase of

goods

15988606.86

Shenzhen Konka E-display Co. Ltd.Purchase of

goods and

services

13372446.76

Wanjun Technology (Kunshan) Co.Ltd. (formerly known as “KunshanKonka Electronics Co. Ltd.”)

Purchase of

goods

6317019.16 5787467.53

Shenzhen Trade Link Supply Chain

Management Co. Ltd.Purchase of

goods

5617295.12 146267088.53

E3info (Hainan) Technology Co. Ltd.

Purchase of

goods and

services

5006164.56

Shenzhen Konka Information Network

Co. Ltd.

Purchase of

goods and

services

2798788.35 31244486.68

Anhui Kaikai Sihjie E-commerce Co.

Ltd.Purchase of

goods

306706.67 23713758.38

Huanjia Group Co. Ltd.Purchase of

goods

434647381.86

Subtotal of other related parties

Purchase of

goods and

services

5158078.73 22702314.29

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

（2） Information of sales of goods and provision of labor service

Related party Content Reporting Period

Same Period of

last year

Anhui Kaikai Sihjie E-commerce Co.

Ltd.Sales of

goods and

render labor

service

443843708.04 582052622.44

HOHOELECTRICAL&FURNITUREC

O.LIMITED

Sales of

goods and

render labor

service

115451594.04 56895724.52

OCT Group Co. Ltd. and its

subsidiaries and associated enterprises

Sales of

goods and

render labor

service

112863678.04 127353778.04

Shenzhen Konka Smart Electrical

Apparatus Technology Co. Ltd.

Sales of

goods and

render labor

service

75623621.40

Shenzhen Jielunte Technology Co. Ltd.and its subsidiaries

Sales of

goods

66305912.40 22467519.24

Chuzhou Hanshang Electric Appliance

Co. Ltd.

Sales of

goods and

render labor

service

47780642.42 42844475.34

Shandong Konka Smart Electrical

Appliance Co. Ltd.

Sales of

goods

47720206.98 76954416.15

Henan Konka Smart Electrical

Appliance Co. Ltd.

Sales of

goods

35730677.80 39294628.59

Shenzhen Konka E-display Commercial

Display Co. Ltd.

Sales of

goods and

render labor

service

33606160.84 19335967.50

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Related party Content Reporting Period

Same Period of

last year

Shenzhen Yaode Technology Co. Ltd.Sales of

goods

32701728.34 372927101.60

E3info (Hainan) Technology Co. Ltd.

Sales of

goods and

render labor

service

17158367.26

AUJET INDUSTRY LIMITED

Sales of

goods

9332254.17 245808684.12

Feidi Technology (Shenzhen) Co. Ltd.

and its subsidiaries

Render

labor

service

4338841.78

Unifortune (Hong Kong) Co. Ltd.Sales of

goods

3582516.56

Shenzhen Konka Information Network

Co. Ltd.

Sales of

goods and

render labor

service

2701125.58 4350063.13

Heilongjiang Longkang Smart

Electrical Appliance Co. Ltd.

Sales of

goods

5837.17 17497025.47

Wanjun Technology (Kunshan) Co.Ltd. (formerly known as “KunshanKonka Electronics Co. Ltd.”)

Sales of

goods

2182486.57

Shenzhen Trade Link Supply Chain

Management Co. Ltd.Sales of

goods and

render labor

service

28711000.66

Dongguan Konka Electronics Smart

Technology Co. Ltd.Sales of

goods

22454105.62

Subtotal of other related parties

Sales of

goods and

render labor

service

3415674.73 6238691.36

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

2. Information on Related-party Lease

（1） Lease situation

Leasee Lessee's name Category

The lease fee

confirmed in

the Reporting

Period

The lease fee

confirmed in

the same

period of last

year

OCT Group Co. Ltd.

And its subsidiaries

Konka Group Co. Ltd.

Commercial

residences and

office buildings

1793893.44 1640143.78

OCT Group Co. Ltd.

And its subsidiaries

Konka Ventures

Development (Shenzhen)

Co. Ltd.

Commercial

residences and

office buildings

25095479.94

3. Information on Related-party Guarantee

（1） The Company was guarantor

Secured party

Guarantee

amount

(RMB’0000

)

Currenc

Start date End date

Executio

accompli

shed or

not

Ningbo

Kanghanrui

Electric

6000.00 CNY 2020-7-27 2021-7-26 Not

Kunshan

Kangsheng

Investment

Development

Co. Ltd.

24500.00 CNY 2019-9-23 2022-9-22 Not

Pengrun

Technology

5000.00 CNY 2020-8-25 2021-8-25 Not

Anhui

Tongchuang

4500.00 CNY 2019-8-1 2020-8-1 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Anhui

Tongchuang

3000.00 CNY 2019-11-5 2020-11-4 Not

Anhui

Tongchuang

5000.00 CNY 2019-12-25 2020-12-25 Not

Anhui

Tongchuang

3500.00 CNY 2020-1-13 2021-1-13 Not

Anhui

Tongchuang

5800.00 CNY 2020-3-11 2021-3-11 Not

Anhui

Tongchuang

3000.00 CNY 2020-8-7 2021-8-5 Not

Anhui

Tongchuang

3000.00 CNY 2020-10-19 2021-10-18 Not

Dongguan

Konka

3000.00 CNY 2020-1-16 2021-1-15 Not

Dongguan

Konka

2000.00 CNY 2019-11-8 2024-11-5 Not

Electronics

Technology

6000.00 CNY 2020-6-9 2021-6-8 Not

Electronics

Technology

10000.00 CNY 2020-7-24 2021-6-28 Not

Electronics

Technology

50000.00 CNY 2020-11-16 2021-5-22 Not

Electronics

Technology

8000.00 CNY 2020-8-14 2021-6-9 Not

Econ

Technology

5000.00 CNY 2019-11-14 2020-11-13 Not

Econ

Technology

8800.00 CNY 2020-4-29 2021-4-28 Not

Econ

Technology

5000.00 CNY 2020-5-25 2021-5-24 Not

Econ

Technology

24000.00 CNY 2020-6-5 2021-3-17 Not

Econ 5000.00 CNY 2020-9-22 2021-9-21 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Technology

Econ

Technology

5000.00 CNY 2020-8-21 2020-8-20 Not

Telecommunicat

ion Technology

7500.00 CNY 2020-8-26 2021-8-26 Not

Sichuan Konka 4000.00 CNY 2019-3-18 2022-3-19 Not

Yibin OCT

Sanjiang

Properties Co.Ltd.

14000.00 CNY 2019-9-29 2022-9-28 Not

XingDa HongYe 5800.00 CNY 2020-11-12 2022-11-12 Not

XingDa HongYe 2000.00 CNY 2020-12-25 2023-12-25 Not

Boluo Konka

Precision

2500.00 CNY 2019-2-20 2021-2-20 Not

Boluo Konka

Precision

2480.11 CNY 2020-8-19 2023-8-19 Not

Jiangxi Konka 11960.58 CNY 2019-3-18 2021-9-18 Not

Jiangxi Konka 5500.00 CNY 2019-6-26 2022-6-25 Not

Jiangxi Konka 6500.00 CNY 2019-10-30 2022-10-30 Not

Jiangxi Konka 990.00 CNY 2020-3-20 2022-3-19 Not

Jiangxi Konka 6000.00 CNY 2020-6-28 2021-6-27 Not

Jiangxi Konka 3000.00 CNY 2020-8-4 2021-8-4 Not

Jiangxi Konka 10000.00 CNY 2020-9-29 2023-9-29 Not

Jiangxi Konka 10000.00 CNY 2020-11-6 2023-12-6 Not

Jiangxi Konka 5000.00 CNY 2020-12-21 2022-12-31 Not

Jiangxi Konka 1000.00 CNY 2020-12-30 2023-12-30 Not

Nano

Crystallized

Glass

10000.00 CNY 2019-6-26 2022-6-25 Not

Nano

Crystallized

Glass

5000.00 CNY 2019-12-20 2022-12-20 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Nano

Crystallized

Glass

5000.00 CNY 2020-1-8 2023-1-8 Not

Nano

Crystallized

Glass

5000.00 CNY 2020-1-8 2022-1-8 Not

Nano

Crystallized

Glass

990.00 CNY 2020-3-20 2022-3-19 Not

Nano

Crystallized

Glass

5975.00 CNY 2020-5-29 2022-11-29 Not

Nano

Crystallized

Glass

7000.00 CNY 2020-6-24 2021-6-23 Not

Nano

Crystallized

Glass

6000.00 CNY 2020-7-14 2023-7-14 Not

Xinfeng

Microcrystalline

5000.00 CNY 2020-5-19 2023-5-19 Not

Xinfeng

Microcrystalline

3478.85 CNY 2020-5-29 2022-11-29 Not

Xinfeng

Microcrystalline

7200.00 CNY 2020-6-18 2021-6-17 Not

Xinfeng

Microcrystalline

2100.00 CNY 2020-12-8 2023-12-8 Not

Xinfeng

Microcrystalline

7200.00 CNY 2020-12-28 2021-12-27 Not

Hong Kong

Konka

2000.00 USD 2020-3-6 2021-2-19 Not

Hong Kong

Konka

20000.00 CNY 2020-12-28 2021-9-9 Not

Anhui Konka 10000.00 CNY 2020-11-25 2021-11-24 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Anhui Konka 26800.00 CNY 2020-12-24 2021-9-2 Not

Yibin Kangrun 10000.00 CNY 2020-11-13 2024-12-31 Not

Rushan Econ 29000.00 CNY 2016-12-29 2026-12-28 Not

Subei Kangrun

Water

77600.00 CNY 2020-3-10 2035-3-9 Not

Wuhan Runyuan

Wastewater

55200.00 CNY 2020-1-20 2040-1-19 Not

Dayi Kangrun

Water

27400.00 CNY 2020-4-29 2035-4-10 Not

Sichuan Konka 14000.00 CNY 2018-5-28 2027-5-24 Not

Xi'an Gaoling

Food Waste

Harmless

Treatment

Franchise

Project

Cooperation

Agreement

24571.00 CNY 2020-12-17 2035-12-16 Not

（2）The Company was secured party

Guarantor:

Guarante

e amount

(RMB’00

00)

Curren

Start

date

End date

Execution

accomplis

hed or

not

OCT Group Co.

Ltd.

200000.00 CNY 2020-6-19 2022-6-19 Not

OCT Group Co.

Ltd.

500000.00 CNY 2019-1-10 2023-7-21 Not

Shenzhen Musen

Enterprise Co. Ltd.

3325.73 CNY 2019-3-19 2022-3-18 Not

Yantai Baijiangyuan

Business

Management Center

23851.98 CNY 2019-6-6 2021-6-1 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Guarantor:

Guarante

e amount

(RMB’00

00)

Curren

Start

date

End date

Execution

accomplis

hed or

not

(LP)

Yantai Fengqingtai

Investment Center

(LP)

10606.39 CNY 2019-6-6 2021-6-1 Not

Yantai Qingrunyuan

Business

Management Center

(LP)

9749.83 CNY 2019-6-6 2021-6-1 Not

Yantai

Qingjiangchuan

Business

Management Center

(LP)

676.29 CNY 2019-6-6 2021-6-1 Not

Yantai Baijiangyuan

Business

Management Center

(LP)

13748.59 CNY 2019-4-23 2021-5-24 Not

Yantai Fengqingtai

Investment Center

(LP)

6113.66 CNY 2019-4-23 2021-5-24 Not

Yantai Qingrunyuan

Business

Management Center

(LP)

5619.93 CNY 2019-4-23 2021-5-24 Not

Yantai

Qingjiangchuan

Business

Management Center

(LP)

389.82 CNY 2019-4-23 2021-5-24 Not

Hu Zehong 980.00 CNY 2020-1-24 2021-1-23 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Guarantor:

Guarante

e amount

(RMB’00

00)

Curren

Start

date

End date

Execution

accomplis

hed or

not

Hu Zehong 1959.02 CNY 2020-4-21 2021-4-20 Not

Hu Zehong 490.00 CNY 2020-4-22 2021-4-20 Not

Hu Zehong 2450.00 CNY 2020-8-4 2021-8-3 Not

Hu Zehong 183.75 CNY 2020-11-3 2021-11-2 Not

Hu Zehong 142.10 CNY 2020-11-4 2021-11-2 Not

Hu Zehong 1014.30 CNY 2020-11-5 2021-11-2 Not

Hu Zehong 105.35 CNY 2020-11-16 2021-11-2 Not

Hu Zehong 24.50 CNY 2020-11-30 2021-11-2 Not

Hu Zehong 343.00 CNY 2020-12-31 2021-1-31 Not

Hu Zehong Liang

Ruiling Dai Yaojin

5800.00 CNY 2020-11-12 2022-11-12 Not

Hu Zehong Liang

Ruiling Dai Yaojin

2000.00 CNY 2020-12-25 2023-12-25 Not

Chuzhou

State-owned Assets

Management Co.Ltd.

2200.00 CNY 2020-11-25 2021-11-24 Not

Chuzhou

State-owned Assets

Management Co.Ltd.

5896.00 CNY 2020-12-24 2021-9-2 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

14161.00 CNY 2020-10-12 2021-10-11 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

4900.00 CNY 2020-11-6 2023-11-6 Not

Jiangxi Xinzixin

Real Estate Co.

5860.69 CNY 2019-3-18 2021-9-18 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Guarantor:

Guarante

e amount

(RMB’00

00)

Curren

Start

date

End date

Execution

accomplis

hed or

not

Ltd. Zhu Xinming

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2940.00 CNY 2020-6-28 2021-6-27 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2695.00 CNY 2019-6-26 2022-6-25 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

3185.00 CNY 2019-10-30 2022-10-30 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

485.10 CNY 2020-3-20 2022-3-19 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

1470.00 CNY 2020-8-4 2021-8-4 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

4900.00 CNY 2020-9-29 2023-9-29 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

490.00 CNY 2020-12-30 2023-12-30 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

3528.00 CNY 2020-6-18 2021-6-17 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2450.00 CNY 2020-5-19 2023-5-19 Not

Jiangxi Xinzixin

Real Estate Co.

1704.64 CNY 2020-5-29 2022-11-29 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Guarantor:

Guarante

e amount

(RMB’00

00)

Curren

Start

date

End date

Execution

accomplis

hed or

not

Ltd. Zhu Xinming

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

1029.00 CNY 2020-12-8 2023-12-8 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

3528.00 CNY 2020-12-28 2021-12-27 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

Xiong Muzhi Zeng

Xiaohong Zhu

Chengfu

4900.00 CNY 2019-6-26 2022-6-25 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2450.00 CNY 2019-12-20 2022-12-20 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2450.00 CNY 2020-1-8 2023-1-8 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2450.00 CNY 2020-1-8 2022-1-8 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

485.10 CNY 2020-3-20 2022-3-19 Not

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2927.75 CNY 2020-5-29 2022-11-29 Not

Jiangxi Xinzixin

Real Estate Co.

3430.00 CNY 2020-6-24 2021-6-23 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Guarantor:

Guarante

e amount

(RMB’00

00)

Curren

Start

date

End date

Execution

accomplis

hed or

not

Ltd. Zhu Xinming

Jiangxi Xinzixin

Real Estate Co.Ltd. Zhu Xinming

2940.00 CNY 2020-7-14 2023-7-14 Not

Chuzhou Hanshang

Electric Appliance

Co.Ltd.

4533.96 CNY 2020-6-24 2021-5-20 Not

Shenzhen Guoxin

Micro-electronics

Co. Ltd.

2630.44 CNY 2020-8-22 2021-8-21 Not

Yudong

Environmental

Protection

Technology Co.Ltd.

8820.00 CNY 2019-8-24 2021-6-5 Not

Yuan Shengxiang CNY 2019-8-24 2021-6-5 Not

Shenzhen

Henglongtong

Technology Co.Ltd.

1041.09 CNY 2021-1-1 2021-12-31 Not

Huaying Gaokede

Electronic Technology

Co. Ltd.

40146.00 CNY 2018-1-1 2021-12-31 Not

Huaying Gaokelong

Electronic Technology

Co. Ltd.

40146.00 CNY 2018-1-1 2021-12-31 Not

Guizhou Huajinrun

Technology Co.Ltd.

5740.57 USD 2021-1-1 2021-12-31 Not

Shenhzhen Trade

Link Supply Chain

Management Co.Ltd.

7331.18 USD 2018-9-27 2021-4-30 Not

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Guarantor:

Guarante

e amount

(RMB’00

00)

Curren

Start

date

End date

Execution

accomplis

hed or

not

AUJET

INDUSTRY

LIMITED

21641.85 USD 2018-5-17 2021-4-30 Not

Shenzhen

Unifortune Supply

Chain Management

Co. Ltd.

8856.25 USD 2019-7-12 2023-6-30 Not

Shenzhen

Unifortune Supply

Chain Management

Co. Ltd.

14438.56 USD 2018-1-1 2023-6-30 Not

Wu Guoren and

Xiao Yongsong

5914.82 USD 2018-8-21 2023-12-31 Not

Wu Guoren and

Xiao Yongsong

43481.93 USD 2019-1-1 2023-12-31 Not

Electronics

Technology

50000.00 CNY 2019-9-26 2020-9-25 Not

Electronics

Technology

50000.00 CNY 2019-9-27 2020-9-26 Not

4. Borrowings of Funds

Name Amount

Curre

ncy

Start date Due date Note

Borrowing

OCT Group Co. Ltd. 111060000.00 CNY 2020/11/12 2022/12/09

OCT Group Co. Ltd. 500000000.00 CNY 2020/12/07 2022/12/09

Econ Holdings (Yantai) Co. Ltd. 37559970.00 CNY 2020/11/23 2021/11/22

E3info (Hainan) Technology Co.

Ltd.

50000000.00 CNY 2020/12/05 2021/06/04

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name Amount

Curre

ncy

Start date Due date Note

Chuzhou Hanshang Electric

Appliance Co. Ltd.

134750000.00 CNY 2020/02/01 2021/01/31

Total 833369970.00

Lending

Yibin OCT Sanjiang Properties

Co. Ltd.

35000000.00 CNY 2020/04/25 2021/04/24

Yibin OCT Sanjiang Properties

Co. Ltd.

40000000.00 CNY 2018/10/25 2021/10/24

Chongqing Konka Fuze Real Estate

Co. Ltd.

188430000.00 CNY 2020/11/25 2021/11/24

Chongqing Qingjia Electronics

Co. Ltd.

8900000.00 CNY 2019/04/12 2020/04/11

Yantai Kangyue Investment Co.Ltd.

128527000.00 CNY 2020/12/16 2021/12/15

Chuzhou Kangxin Health Industry

Development Co. Ltd.

132880000.00 CNY 2020/10/20 2021/08/23

Chuzhou Kangxin Health Industry

Development Co. Ltd.

20000000.00 CNY 2020/12/10 2021/12/09

Chuzhou Kangjin Health Industry

Development Co. Ltd.

58800000.00 CNY 2020/09/16 2021/09/15

Chuzhou Kangjin Health Industry

Development Co. Ltd.

77547400.00 CNY 2020/02/27 2021/01/12

Chuzhou Kangjin Health Industry

Development Co. Ltd.

24500000.00 CNY 2020/06/15 2021/06/14

Dongguan Konka Investment Co.

Ltd.

22231944.48 CNY 2020/08/06 2021/08/05

Dongguan Konka Investment Co.

Ltd.

7000000.00 CNY 2020/08/14 2021/08/05

Dongguan Konka Investment Co.

Ltd.

166768055.5 CNY 2020/08/14 2021/08/05

Total 910584399.98

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

5. Assets Transfer of Related Party

Name Content Reporting Period

Same period of

last year

Shenzhen Konka Holding Group

Co. Ltd.

Assignment of

patent rights

188200000.00 -

Shenzhen Konka Holding Group

Co. Ltd.

Equity transfer 470986530.00 -

Shenzhen OCT Capital Investment

Management Co. Ltd.

Equity transfer - 63520500.00

Shanghai OCT Investment

Development Co. Ltd.

Equity transfer - 122254344.00

Shenzhen OCT Property

Commercial Development Co. Ltd.

Equity transfer - 4538210.00

Total 659186530.00 190313054.00

6. Information on Remuneration for Key Management Personnel

Item

Reporting Period

(RMB’0000)

Same period of last year

(RMB’0000)

Total remuneration 2953.87 2872.87

(III) Balances with Related Party

1. Accounts Receivable

Related party

Ending balance Beginning balance

Carrying amount Bad debt

provision

Carrying amount Bad debt

provision

Accounts receivable:

Anhui Kaikai Shijie

E-commerce Co. Ltd.

153854753.25 3170897.81 19822544.45 402397.65

HOHOELECTRICAL&FU

RNITURECO.LIMITED

124721168.78 6447669.98 112180062.15 2277255.26

OCT Group Co. Ltd. And

its subsidiaries associated

enterprises

68938082.60 1503214.49 21207204.72 430506.25

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Related party

Ending balance Beginning balance

Carrying amount Bad debt

provision

Carrying amount Bad debt

provision

Shenzhen Yaode

Technology Co. Ltd.

134098413.80

12181165.6

119160752.64 2426038.42

Shenzhen Konka

Information Network Co.Ltd.

38956293.90 5163003.42 38384430.47 1536141.16

Shenzhen Jielunte

Technology Co. Ltd. and its

subsidiaries

38228985.16 974569.50 75330999.32 1645079.86

Shenzhen Konka E-display

Co. Ltd.

12709150.65 343432.80 63110212.25 1281137.31

Wanjun Technology

(Kunshan) Co. Ltd.(formerly known as“Kunshan Konka

Electronics Co. Ltd.”

235078.99 4772.10

Subtotal of other related

parties

67279675.44 5088645.55 13829893.57 1940210.75

Total 638786523.58

34872599.2

463261178.56

11943538.7

Notes receivable:

Anhui Kaikai Shijie

E-commerce Co. Ltd.

2231739.87 37000000.00

Subtotal of other related

parties

2243687.84 6739171.02

Total 4475427.71 43739171.02

Interest receivable:

Chuzhou Kangjin Health

Industry Development Co.Ltd.

7564562.01 1120466.66

Yantai Kangyue Investment

Co. Ltd.

10910514.22

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Related party

Ending balance Beginning balance

Carrying amount Bad debt

provision

Carrying amount Bad debt

provision

Chongqing Konka Fuze

Real Estate Co. Ltd.

15828119.98

Chongqing Qingjia

Electronics Co. Ltd.

1244022.19

Total 34303196.21 2364488.85

Dividends receivable

Chongqing Qingjia

Electronics Co. Ltd.

547848.62 547848.62

Binzhou Beihai Weiqiao

Solid Waste Treatment Co.Ltd.

4400000.00

Dai Rongxing 4947848.62 547848.62

Other receivables:

Chongqing Liangshan

Industrial Investment Co.Ltd.

262878000.00 5362711.20

Haiying Technology Group

(Hong Kong) Co. Ltd.

247361920.74 5046183.18

Jiangxi Meiji Enterprise

Co. Ltd.

93512640.31

18833017.2

93612640.31 2068839.35

Dai Rongxing 82914871.05

21175816.9

85104483.48 4161412.98

OCT Group Co. Ltd. and

its subsidiaries associated

enterprises

30431127.39

14223018.1

29609699.81 8794143.64

Huanjia Group Co. Ltd. 23065103.20 9226041.28 23065103.20 4613020.64

HOHOELECTRICAL&FU

RNITURECO.LIMITED

5519421.05 112596.19

Hu Jiawen 251625.20 12300.31

Subtotal of other related

parties

473279.18 21303.41 84194.95 6951.75

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Related party

Ending balance Beginning balance

Carrying amount Bad debt

provision

Carrying amount Bad debt

provision

Total 746156362.92

74000687.6

231727746.95

19656668.6

Prepayments:

Haiying Technology Group

(Hong Kong) Co. Ltd.

306033571.06 439434346.00

Shenzhen Konka

Information Network Co.Ltd.

40220535.22 40983577.99

Shenzhen Jielunte

Technology Co. Ltd. and its

subsidiaries

13483626.36 13763739.19

HOHOELECTRICAL&FU

RNITURECO.LIMITED

7655079.81

Puchuang Jiakang

Technology Co Ltd.

5111181.00 39920926.00

Shenzhen Unifortune

Supply Chain Management

Co. Ltd.

28623157.08

Subtotal of other related

parties

5647733.34 883108.32

Total 378151726.79 563608854.58

Current portion of

non-current assets:

OCT Group Co. Ltd. and

its subsidiaries associated

enterprises

75000000.00 60000000.00

Feidi Technology

(Shenzhen) Co. Ltd.

30630065.09 31827347.83

Subtotal of other related

parties

6873893.20

Total 105630065.09 98701241.03

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Related party

Ending balance Beginning balance

Carrying amount Bad debt

provision

Carrying amount Bad debt

provision

Other current assets:

Chongqing Konka Fuze

Real Estate Co. Ltd.

188430000.00

Dongguan Konka

Investment Co. Ltd.

196000000.00

Chuzhou Kangjin Health

Industry Development Co.Ltd.

160847400.00 58800000.00

Chuzhou Kangxin Health

Industry Development Co.Ltd.

152880000.00

Yantai Kangyue Investment

Co. Ltd.

128527000.00 128983984.89

Total 826684400.00 187783984.89

Long-term receivables:

Feidi Technology

(Shenzhen) Co. Ltd. and its

subsidiaries

12749762.58 37980796.18

Subtotal of other related

parties

Total

421998.80

Total 12749762.58 38402794.98

Other non-current assets:

OCT Group Co. Ltd. and

its subsidiaries associated

enterprises

40000000.00

Chongqing Qingjia

Electronics Co. Ltd.

10867888.84 8900000.00

Total 10867888.84 48900000.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

2. Accounts Payable

Related party Ending carrying amount Beginning carrying

amount Accounts payable:

Chongqing Lvfeng Renewable Resources

Co. Ltd.

18510819.80

Shenzhen Jielunte Technology Co. Ltd. and

its subsidiaries

12618777.74 35164809.08

OCT Group Co. Ltd. and its subsidiaries

associated enterprises

10042155.58

Anhui Kaikai Shijie E-commerce Co. Ltd. 2633353.42 60733455.22

Wanjun Technology (Kunshan) Co. Ltd.(formerly known as “Kunshan Konka

Electronics Co. Ltd.”)

434816.51 13012382.66

Subtotal of other related parties 38370021.37 20584918.26

Total 82609944.42 129495565.22

Notes payable:

Subtotal of other related parties 17085784.47 10863352.03

Total 17085784.47 10863352.03

Contract liabilities/other non-current

liabilities:

Shenzhen Jielunte Technology Co. Ltd. and

its subsidiaries

27430700.76

OCT Group Co. Ltd. and its subsidiaries

associated enterprises

15357854.41 15378600.41

Wanjun Technology (Kunshan) Co. Ltd.(formerly known as “Kunshan Konka

Electronics Co. Ltd.”)

16903.16 13150116.07

Shenzhen Unifortune Supply Chain

Management Co. Ltd.

28673472.74

Subtotal of other related parties 4501631.71 395776.64

Total 47307090.04 57597965.86

Other payables:

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Related party Ending carrying amount Beginning carrying

amount Chuzhou Hanshang Electric Appliance Co.Ltd.

151494362.56 94093715.34

Chongqing Lvfeng Renewable Resources

Co. Ltd.

5800221.60

E3info (Hainan) Technology Co. Ltd. 50166438.36

Feidi Technology (Shenzhen) Co. Ltd. and

its subsidiaries

13215861.75 11767561.85

Shenzhen Jielunte Technology Co. Ltd. and

its subsidiaries

786209.02 10240000.00

Shenzhen Yaode Technology Co. Ltd. 280000.00 39727606.67

Subtotal of other related parties 6178569.39 7224602.98

Total 227921662.68 163053486.84

Current portion of non-current liabilities:

OCT Group Co. Ltd. and its subsidiaries 10777675.49 7512375.00

Total 10777675.49 7512375.00

Long-term payables:

OCT Group Co. Ltd. and its subsidiaries and

associates

40485591.71 41434396.98

Total 40485591.71 41434396.98

XII. Contingency

(1) As the company holds commercial bills guaranteed to be accepted by Jiangsu Hongtu

High-Tech Co. Ltd. the acceptor has not paid the bills after maturity. The company as the

plaintiff filed a lawsuit with the court for bills with a total amount of 200 million yuan. The

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. bear joint and several liability for the

settlement of the bill amount and 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 property execution is ongoing.

(2) The Company held commercial acceptance bills of Shanghai Huaxin International Group

Co. Ltd. while the acceptor failed to accept the matured bills. The Company as the plaintiff filed

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

a lawsuit for bills of RMB 300018021.01 to the court asked bill acceptor and Shanghai Huaxin

International Group Co. Ltd. involves bills before hand the bill amount and default interest shall

bear joint liability. As of the date of issuance of this report the case involving 150 million yuan in

the case has been in the compulsory execution stage and the shareholder has been added as the

person to be executed in the case; the courts of the remaining 150 million cases have ruled that

the defendant should pay bills and interest to Konka Group Enforced. As of the date of issuance

of this report property execution is ongoing.

(3) The Company held commercial acceptance bills of China Nuclear Engineering &

Construction Group Corporation Limited while the acceptor failed to accept the matured bills.

The Company as the plaintiff filed a lawsuit for bills of RMB 78300690.24 to court among

companies and involves bills before hands the bill amount and default interest shall bear joint

liability and applied for property preservation. As of the date of issuance of this report more than

1.75 million yuan has been frozen in the defendant's bank account; The court has ordered the

defendant to pay the bill and the corresponding interest to Konka Group and the case is being

executed.

(4) The Company’s subsidiary Konka Factoring held commercial acceptance bills of

CCCC First Harbor Engineering Co. Ltd. while the acceptor failed to accept the matured bills.

The Company as the plaintiff filed a lawsuit for bills of RMB 65221300.00 to court among

companies and involves bills before hands the bill amount and default interest shall bear joint

lThe Company held commercial acceptance bills of Shanghai Huaxin International Group Co.Ltd. while the acceptor failed to accept the matured bills. The Company as the plaintiff filed a

lawsuit for bills of RMB 300018021.01 to the court asked bill acceptor and Shanghai Huaxin

International Group Co. Ltd. involves bills before hand the bill amount and default interest shall

bear joint liability. As of the date of issuance of this report the case involving 150 million yuan in

the case has been in the compulsory execution stage and the shareholder has been added as the

person to be executed in the case; the courts of the remaining 150 million cases have ruled that

the defendant should pay bills and interest to Konka Group Enforced. As of the date of issuance

of this report the property has not yet been implemented.iability. As of the date of this report the

case is still on trial and the above commercial acceptance bill has not been honored.

(5) The dispute among the Company 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. over the right of recourse for bills involves the

amount of the subject matter of the lawsuit to be RMB 50 million and the corresponding interest.In September 2018 the Company filed a lawsuit with Shenzhen Intermediate People’s Court

which has preserved the defendant’s corresponding property. The judgment of this case has come

into effect. In the court's judgment defendants such as China Energy Electric Fuel Co. Ltd. shall

pay the bill amount of RMB50 million and the relevant interest to the Company. As of the

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

issuance date of this report the case was in the execution stage and has applied to the court for

additional shareholders to be the executor.

(6) The dispute in bill recourse among the subsidiary of the Company Konka Factoring

(Shenzhen) Co. Ltd. Tahoe Group Co. Ltd. Fuzhou Taijia Enterprise Co. Ltd. and Xiamen

Lianchuang Micro-electronics Co. Ltd. has involved with the underlying amount of RMB 50

million and relevant interest. In January 2019 the Company filed a lawsuit to Xiamen Municipal

Intermediate People’s Court and the Company has applied for property preservation to the court.

As of the issuance date of this report the case has not given judgment.

(7) The loan contract disputes related to the Company’s subsidiary Jiangxi Konka and its

subsidiary Xinfeng Microcrystaline Nanocrystalline China Great Wall AMC Jiangxi Branch

Zhu Xinming Leng Sumin Jiangxi Xinzixin Jiangxi Xinxin Jian’an Engineering Jiangxi

Zhongyi Decorative Material Jiangxi Shanshi Science and Technology and etc. Due to the

affiliated parties of Jiangxi Konka’s original shareholder i.e. Jiangxi Xinxin Jian’an Engineering

Jiangxi Zhongyi Decorative Material Jiangxi Shanshi Technology failed to repay the loan on

schedule. Therefore China Great Wall AMC Jiangxi Branch filed a lawsuit and demanded Jiangxi

Xinxin Jian’an Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi Science and

Technology to repay the loan principal of RMB 300 million liquidated damages of RMB 108000

and interest of RMB 13.65 million. Guarantors Jiangxi Konka Zhu Xinming Leng Sumin Nano

Crystallized Glass and Xinfeng Microcrystaline were required to bear joint liability for the above

debts.On October 31 2019 the Jiangxi Provincial Superior People’s Court ruled in first instance

that Jiangxi Xinxin Jian’an Engineering Jiangxi Zhongyi Decorative Material Jiangxi Shanshi

Technology would repay the loan principal of RMB 100 million interest and liquidated damages

to China Great Wall AMC Jiangxi Branch within 10 days from the effective date of the judgment

respectively. Jiangxi Konka Zhu Xinming Leng Sumin Nano Crystallized Glass and Xinfeng

Microcrystaline shall bear joint and several liabilities for all debts determined by the above

judgment. The defendants have appealed against the judgment of the first instance and the

Supreme People's Court has accepted the case. As of the date of issuance of this report the case is

still under trial.The actual controller of Konka New Materials Zhu Xinming and his spouse Leng Sumin

as guarantors provided a total of about RMB 143 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 nanometer

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 about RMB 243 million of real estate assets as the case of the

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

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 honored.

(8) The company's subsidiary Konka Huanjia Environmental Protection Technology Co. Ltd.

and Huanjia Group Co. Ltd. Dalian Jinshunda Material Recycling Co. Ltd. and other 14

companies have filed a case involving disputes over the sale and purchase contract and the

amount involved in the litigation is RMB 568491466.67. Konka Huanjia Environmental

Technology Co. Ltd. has applied for the court to seal up and freeze the defendant's corresponding

property. As of the date of issuance of this report no effective judgment has been issued for this

case.

(9) The company holds bank acceptance bills accepted by Tianjin Materials Group Finance

Co. Ltd. and the acceptor did not redeem the bills after maturity. Therefore as the plaintiff the

company filed a lawsuit with the court for the bills with a total amount of RMB200000000.00

and requested the bills to be handed over to Wuhan Jialian Agricultural Technology Development

Co. Ltd. shall be liable for the settlement of the bill amount and default interest. As of the date of

issuance of this report the case is still under trial and the above-mentioned commercial

acceptance bill has not yet been paid.

(10) The dispute in sales contract between the subsidiary of the Company Dongguan Konka

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. Huang Zhihao have involved in RMB 89405998.78 (including RMB

52718868.54 of overdue payment the corresponding liquidated damages and litigation costs). In

December 2020 the company filed a lawsuit with the court and the case is currently being heard

in Shenzhen Nanshan District People's Court. As of the date of issuance of this report no

effective judgment has been issued for this case.

(11) The dispute over liability for freight forwarding contracts at sea and in sea areas

between the subsidiary of the Company Anhui Konka and Shanghai Triangle Link Logistics Co.Ltd. Shenzhen Branch and Shanghai Triangle Link Logistics Co. Ltd. have involved in RMB

37966066.73. In January 2020 the company filed a lawsuit with the court and the case is

currently being heard by the Shanghai Higher People's Court. As of the date of issuance of this

report no effective judgment has been issued for this case.

(12) The dispute in capital increase among the subsidiary of the Company Shenzhen

Nianhua Fang Xianglong and Jiang Yan has involved in RMB 20451631.52 and Shenzhen

Nianhua has applied for property preservation to the court. As of the date of issuance of this

report the case has been completed and the Shenzhen Court of International Arbitration has

issued an award which is currently being implemented.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

XIII. Commitment and Contingency

1. Capital Commitments

Item Ending balance Beginning balance

Commitments signed but hasn’t been

recognized in financial statements

—Commitment on construction and purchase

of long-lived assets

277628800.00

—Contract with large amount 4310308187.10 3889900964.09

—Foreign investment commitments 103090000.00

Total 4587936987.10 3992990964.09

2. Operating Lease Commitments

As of the balance sheet date the irrevocable operating lease commitments that the Company

signed were as followed:

Item Ending balance Beginning balance

Minimum lease payments of irrevocable

operating lease

1 year after balance date 52265285.12 29370366.16

2 years after balance date 36586799.43 29016143.76

3 years after balance date 8779702.07 17502940.47

Following years 26662526.63 5349676.50

Total 124294313.26 81239126.89

3. Other Commitments

As of 31 December 2020 there were no other significant commitments for the Company to

disclose.XⅣ. Events after Balance Sheet Date

1. Significant Non-adjusted Events

The impact of the implementation of the new accounting standards from January 1

2021

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

The Ministry of Finance of the People’s Republic of China (hereinafter referred to as the

“Ministry of Finance”) issued the Notice on Revising and Issuing (CK No. [2018]35) in

December 2018 which shall be implemented from January 1 2019 by companies listed in

both domestic and overseas markets that adopt IFRS or ASBE to prepare financial statements

while other companies that adopts ASBE shall implement the Notice from January 1 2021.Main changes of new leasing criteria include: ① Under the new leasing criteria except

for short-term leasing and low-value asset leasing the lessee shall no longer distinguish

separate financial leasing and operating leasing both of which shall follow the same

accounting treatment and recognize the right-of-use assets and leasing liabilities; ② For the

right-of-use assets depreciation shall be accrued over the remaining useful life of the leased

assets when the lessee can reasonably determine that ownership of the leased asset can be

acquired at the expiration of lease term otherwise depreciation shall be accrued within the

lease term or remaining useful life of the leased asset whichever is shorter. The lessee shall

also determine the occurrence of impairment of right-of-use assets and conduct accounting

treatment for identified impairment loss; ③ For lease liabilities the lessee shall calculate

interest expense of the lease liabilities during each period of the lease term and include it into

profits and losses of the current period; ④ For short-term lease and lease of low-value

assets the lessee may choose not to recognize the right-of-use assets and lease liabilities and

include them in the relevant asset costs or current profits and losses according to straight-line

method or other systematic and reasonable methods in each period of the leasing term. To

follow the convergence provisions of new leasing criteria the Company adjusted the retained

earnings at the beginning of the current year and amounts of other relevant items in the

financial statements based on the cumulative impact of the first implementation of new

leasing criteria without adjusting information of comparable periods. It is expected that the

implementation of new leasing criteria will not generate a significant impact on the current or

previous owner’s equity and net profit of the Company.

From January 1 2021 Konka Group Co. Ltd. (hereinafter referred to as the "Company")

will change its accounting policies in accordance with the "Notice on Revising and Issuing of

the Accounting Standards for Business Enterprises No. 21- Leases".

2. No significant non-adjusted events

3. Profit distribution

Item Content

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Profit or dividend declared to be paid

after review and approval (pending

approval by the general meeting of

shareholders)

Based on the total share capital of 2407945408

shares at the end of 2020 it is proposed to pay a cash

dividend of 1 yuan (including tax) for every 10

shares to all shareholders and the distributed

dividend is RMB240794540.80. The remaining

undistributed profits will be carried forward for

distribution in future years. No bonus shares will be

sent this time and no accumulation fund will be

converted into increased share capital.

4. Sales returns

After the balance sheet date no significant sales returns occurred.

5. Except for the above-mentioned disclosure of matters after the balance sheet date the

Company has no other significant events after the balance sheet date.

XⅤ. Other Significant Events

The Company has no other significant events.XVI. Notes of Main Items in the Financial Statements of the Company as the Parent

1. Accounts Receivable

（1） Listed by Withdrawal Method of Expected Credit Loss

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Proporti

on (%)

Amount

Withdra

wal

proporti

on (%)

Accounts receivable

for which expected

credit loss

withdrawn

separately

948510887.48 18.22 552922400.60 58.29 395588486.88

Accounts receivable

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Proporti

on (%)

Amount

Withdra

wal

proporti

on (%)

for which expected

credit loss

withdrawn by group

Of which: Aging

group

574995507.05 11.05 178675741.20 31.07 396319765.85

party group

3681343439.12 70.73 3681343439.12

Subtotal of groups 4256338946.17 81.78 178675741.20 4.20 4077663204.97

Total 5204849833.65 100.00 731598141.80 14.06 4473251691.85

(Continued)

Category

Beginning balance

Carrying amount Bad debt provision

Carrying value

Amount

Proportio

n (%)

Amount

Withdraw

proportio

n (%)

Accounts receivable

for which expected

credit loss withdrawn

separately

851581146.54 8.52 243095956.82 28.55 608485189.72

Accounts receivable

for which expected

credit loss withdrawn

by group

Of which: Aging

group

562863234.05 5.63 176154824.04 31.30 386708410.01

Related 8585700872.27 85.86 8585700872.27

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Category

Beginning balance

Carrying amount Bad debt provision

Carrying value

Amount

Proportio

n (%)

Amount

Withdraw

proportio

n (%)

party group

Subtotal of groups 9148564106.32 91.48 176154824.04 1.93 8972409282.28

Total 10000145252.86 100.00 419250780.86 4.19 9580894472.00

1） Withdrawal of Expected Credit Loss Separately

Name

Ending balance

Carrying amount

Bad debt

provision

Withdrawal

proportion

(%)

Reason

CEFC

(Shanghai)

Group Co. Ltd.

300018021.01 240014416.81 80.00 Debt default

Tewoo Group

Co. Ltd.

200000000.00 90000000.00 45.00

Judicial

reorganization

Jiangsu Hongtu

Sanbao

High-Tech

Technology Co.Ltd.

200000000.00 80000000.00 40.00

Agreement

reorganization

China Nuclear

Engineering

Construction

Group Co. Ltd.

74582619.13 22374785.74 30.00 Increased credit risk

CCCC No.1

Navigation

Bureau No.1

Engineering Co.

Ltd

55438105.00 48915975.00 88.24

Expected to be

difficult to recover in

full

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Name

Ending balance

Carrying amount

Bad debt

provision

Withdrawal

proportion

(%)

Reason

Other 118472142.34 71617223.05 60.45

Total 948510887.48 552922400.60 58.29

2） Withdrawal of Expected Credit Loss by Group

① Among Groups Withdrawal of Expected Credit Loss by Aging

Aging

Ending balance

Carrying amount Bad debt provision

Withdrawal

proportion (%)

Within 1 year 337825208.74 6891634.26 2.04

1 to 2 years 55708526.76 5581994.38 10.02

2 to 3 years 18682949.00 4239161.13 22.69

3 to 4 years 2323095.43 1507224.31 64.88

Over 4 years 160455727.12 160455727.12 100.00

Total 574995507.05 178675741.20 31.07

②Among Groups Withdrawal of Expected Credit Loss by Adopting Other Method

Aging

Ending balance

Carrying amount Bad debt provision

Withdrawal

proportion (%)

Related party group 3681343439.12

Total 3681343439.12

（2） Listed by aging group

Aging Ending balance

Within 1 year 3562326085.73

1 to 2 years 772416357.56

2 to 3 years 650373734.58

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Aging Ending balance

3 to 4 years 48616790.62

Over 4 years 171116865.16

Total 5204849833.65

731598141.80

4473251691.85

（3） Information of Bad Debt Provision in the Reporting Period

Category

Beginning

balance

Changed amount

Ending balance

Withdrawn

Collec

ted or

revers

Write-off or

verified

Accounts

Receivable Bad

Debt Provision

419250780.86 312347360.94 731598141.80

Total 419250780.86 312347360.94 731598141.80

（4） Actual Verification of Accounts Receivable

No actual verified accounts receivable in the Reporting Period.

（5） Top 5 of the Ending Balance of the Accounts Receivable Collected according to

Arrears Party

Total amount of Top 5 of ending balance of accounts receivable collected according to

arrears party was RMB4375127326.21 accounting for 84.06% of total ending balance of

accounts receivable. Total ending balance of bad debt provision withdrawn was

RMB410014416.81.

（6） There Was No Account Receivable Terminated the Recognition owning to the

Transfer of the Financial Assets.

（7） There Was No Asset and Liability Formed due to the Transfer of Accounts

Receivable and Continued Involvement in the Reporting Period.

2. Other Receivables

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Ending balance Beginning balance

Interest receivable 41138869.97 7431353.86

Dividends receivable 749431635.50 518580871.02

Other receivables 9244298847.60 10026808690.59

Total 10034869353.07 10552820915.47

2.1 Interest receivable

Item Ending balance Beginning balance

Term deposits 6830211.26 4807630.04

loan by mandate 34303196.21 2623723.82

Entrustment loans 5462.50

Total 41138869.97 7431353.86

2.2 Dividends receivable

Investee Ending balance Beginning balance

Hong Kong Konka Limited 250808720.00 214987200.00

Konka Factoring (Shenzhen) Co.Ltd.

70000000.00

Suining Konka Industrial Park

Development Co. Ltd.

280000000.00

Dongguan Konka Electronic Co.

Ltd.

218622915.50 233593671.02

Total 749431635.50 518580871.02

2.3 Other receivables

（1） Classified by Account Nature

Nature Ending carrying amount Beginning carrying amount

Deposit and margin 9180409.27 383449285.99

Intercourse funds among

subsidiaries

9378801127.33 9453745035.03

Intercourse funds with other

related parties

118043953.69 182971639.02

Energy-saving subsidy receivable 141549150.00 141539850.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Other 89315201.21 52265159.90

Total 9736889841.50 10213970969.94

（2） Withdrawal of Bad Debt Provision

Bad debt provision

Phase I Phase II Phase III

Total

Expected credit

losses over the

next 12 months

Expected credit

losses for the

entire duration

(no credit

impairment)

Expected credit

losses for the

entire duration

(with credit

impairment)

Balance on 1 January

2020

7296330.73 17404579.39 162461369.23 187162279.35

In the Reporting Period

Carrying amount of other

receivables on 1 January

2020:

——Transferred to the

Phase II

-157153.93 157153.93

——Transferred to the

Phase III

-410.58 -18204.86 18615.44

——Transferred back to

the Phase II

——Transferred back to

the Phase I

Withdrawal -5237575.75 738679.09 323477996.93 318979100.27

Recovery

Write-off

Verification 153528.90 13396856.82 13550385.72

Other changes

Balance on 31

December 2020

1901190.46 18128678.66 472561124.78 492590993.90

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

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 1 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 1 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.

（3） Withdrawing bad debt provision for other receivables according to group

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Propo

rtion

Amount

Withdr

awal

proport

ion

Other

receivables

with

significant

individual

amount and

make

independent

provision

for expected

credit loss

1764691060.74 18.00 472561124.78 26.78 1292129935.96

Other

receivables

withdrawn

bad debt

provision

according to

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Category

Ending balance

Carrying amount Bad debt provision

Carrying value

Amount

Propo

rtion

Amount

Withdr

awal

proport

ion

credit risks

characteristi

Aging group 128885012.86 1.00 15447446.31 11.99 113437566.55

Low-risk

group

17273953.16 4582422.81 26.53 12691530.35

party group

7826039814.74 80.00 7826039814.74

Subtotal of

groups

7972198780.76 82.00 20029869.12 0.25 7952168911.64

Total 9736889841.50 100.00 492590993.90 5.06 9244298847.60

(Continued)

Category

Beginning balance

Carrying amount Bad debt provision

Carrying value

Amount

Propo

rtion

Amount

Withd

rawal

propo

rtion

Other

receivables with

significant

individual

amount and

make

independent

provision for

expected credit

173092959.33 1.69 162461369.23 93.86 10631590.10

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

loss

Other

receivables

withdrawn bad

debt provision

according to

credit risks

characteristics

Aging group 196772672.55 1.93 16787423.23 8.53 179985249.32

Low-risk

group

390582659.31 3.82 7913486.89 2.03 382669172.42

Related party

group

9453522678.75 92.55 9453522678.75

Subtotal of

groups

10040878010.61 98.30 24700910.12 0.25 10016177100.49

Total 10213970969.94 100.00 187162279.35 1.83 10026808690.59

（4） Listed by aging

Aging Ending balance

Within 1 year 6174537325.77

1 to 2 years 2915238116.54

2 to 3 years 243665416.10

3 to 4 years 96722054.13

4 to 5 years 49208593.53

Over 5 years 257518335.43

Subtotal 9736889841.50

Less: bad debt provision 492590993.90

Total 9244298847.60

（5） Bad Debt Provision for Other Receivables

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

The amount of bad debt provision for this year was RMB318979100.27 and other

receivables actually written off in this period were RMB13550385.72.

（6） Other receivables with top five ending balances collected by debtors.

In this year the total amount of the top five other receivables collected by debtors at the end

of the year was RMB7395358555.11 accounting for 75.95% of the total amount of other

receivables at the end of the year and the total amount of the corresponding accrued bad debt

reserves at the end of the year was RMB315005562.96.

（7） There Was No Other Receivables Terminated the Recognition owning to the Transfer

of the Financial Assets.

（8） There Was No Asset and Liability Formed by the Transfer and the Continues

Involvement of Other Receivables.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

3. Long-term Equity Investment

（1）Category of Long-term Equity Investment

Item

Ending balance Beginning balance

Carrying amount

Depreciation

reserve

Carrying value Carrying amount

Depreciation

reserve

Carrying value

Investment to

subsidiaries

7083817068.77 102532484.69 6981284584.08 5983370982.51 10732484.69 5972638497.82

Investment to

associates and joint

ventures

1851048093.64 26166078.16 1824882015.48 1752296635.13 12850165.07 1739446470.06

Total 8934865162.41 128698562.85 8806166599.56 7735667617.64 23582649.76 7712084967.88

（2）Investment to Subsidiaries

Investee Beginning balance Increase Decrease Ending balance

Provision for

impairment this

year

Ending balance

of depreciation

reserve

Konka Ventures 2550000.00 2550000.00

Anhui Konka 122780937.98 122780937.98

Konka Factoring 300000000.00 300000000.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance Increase Decrease Ending balance

Provision for

impairment this

year

Ending balance

of depreciation

reserve

Konka Unifortune 15300000.00 15300000.00

Wankaida 10000000.00 10000000.00

Dongguan Konka 274783988.91 274783988.91

Life Electric

Appliance

31500000.00 31500000.00

Konka Europe 3637470.00 3637470.00

Commercial System

Technology

5832000.00 5832000.00

Konka Electrical

Appliances

1.00 1.00 10732484.69

Telecommunication

Technology

360000000.00 360000000.00

Mobile

Interconnection

20000000.00 80000000.00 100000000.00

Anhui Tongchuang 481702612.22 298000000.00 779702612.22

Kangjiatong 15300000.00 15300000.00

Konka Pengrun 25500000.00 25500000.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance Increase Decrease Ending balance

Provision for

impairment this

year

Ending balance

of depreciation

reserve

E3info 12000000.00 12000000.00

Dongguan Packing 8602009.10 8602009.10

E2info 19322040.00 19322040.00

Beijing Konka

Electronic

200000000.00 200000000.00

Konka Circuit 48750000.00 42250000.00 91000000.00

Hong Kong Konka 781828.61 781828.61

Konka Investment 477000000.00 23000000.00 500000000.00

Electronics

Technology

1000000000.00 1000000000.00

Yantai Laikang

Econ Technology 688500000.00 688500000.00

Konka Huanjia 91800000.00 91800000.00 91800000.00 91800000.00

Shanghai Konka 40000000.00 40000000.00

Jiangxi Konka 689680000.00 689680000.00

Shenzhen Nianhua 30000000.00 30000000.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance Increase Decrease Ending balance

Provision for

impairment this

year

Ending balance

of depreciation

reserve

Shenzhen

KONSEMI

100000000.00 100000000.00

Konka

Eco-Development

50000.00 50000.00

Suining Konka 200000000.00 200000000.00

Konka Ronghe 5100000.00 5100000.00

Suining Electronic

Technological

Innovation

200000000.00 200000000.00

Dongguan Konka

Investment

44400000.00 55600000.00 100000000.00

Shenzhen

Chuangzhi

Electrical

Appliances

10000000.00 10000000.00

Kanghong (Yantai)

Environmental

Protection

5100.00 1020000.00 1025100.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance Increase Decrease Ending balance

Provision for

impairment this

year

Ending balance

of depreciation

reserve

Chongqing

Kangxingrui

25500000.00 25500000.00

Chongqing

Optoelectronic

Institute

350000000.00 650000000.00 66666666.67 933333333.33

Xinying

Semiconductor

14000000.00 42000000.00 56000000.00

Jiangkang

(Shanghai)

Technology

Chongqing Real

Estate Development

25500000.00 25500000.00

Ningbo Kanghanrui

Electrical

Appliances

9000000.00 81000000.00 90000000.00

Konka Zhizao 510.00 510.00

Debao New

Material

3750000.00 3750000.00

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee Beginning balance Increase Decrease Ending balance

Provision for

impairment this

year

Ending balance

of depreciation

reserve

Technology

Suining Jiarun Real

Estate

10000000.00 10000000.00

Chuzhou Kangxin

Health Industry

30000000.00 30000000.00

Kangxinglong

Environmental

Protection

10000.00 10000.00

Yantai Kangyun 1530000.00 1530000.00

Chongqing Kanglei

Chongqing Kanglei 67000000.00 67000000.00

Henan Kangxin

Real Estate

Chongqing

Chengda

25500000.00 25500000.00

Konka Material 4304752.93 4304752.93

Total 5972638497.82 1401204752.93 300758666.67 7073084584.08 91800000.00 102532484.69

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

（3）Investment to Joint Ventures and Associated Enterprises

Investee

Balance at the end of

last year at the

beginning of the year

Increase-decrease

Additional

investment

Reduced

investment

Gains and losses

recognized under

the equity method

Adjustment of

other

comprehensive

income

Anhui Kaikai Shijie E-commerce Co.

Ltd.

23529741.15 -6129002.71

Wanjun Technology (Kunshan) Co.Ltd.

128896753.19 -7317169.02

Kunshan Kangsheng 175254554.65

Chutian Dragon Co. Ltd. 636061636.70 23385170.32

Helongjiang Longkang Zhijia

Technology Co. Ltd.

2380000.00 -1279157.71

Konka Green Konka Technology 77342419.36 -2081114.80

Shaanxi Silk Road Cloud Intelligent

Tech Co. Ltd.

17202315.43 446980.38

Shenzhen Konka Information Network

Co. Ltd.

Shenzhen Zhongbin Konka 7273228.41 -5058921.08

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Balance at the end of

last year at the

beginning of the year

Increase-decrease

Additional

investment

Reduced

investment

Gains and losses

recognized under

the equity method

Adjustment of

other

comprehensive

income

Technology Co. Ltd.Shenzhen Konka Intelligent Electrical

Apparatus Co. Ltd.

2882149.72 930984.56

Zhuhai Jinsu Plastic Co. Ltd. 10166404.14 10549865.19 383461.05

Shenzhen Bosser New Materials Co.Ltd.

73600000.00 -1884086.91

Shenzhen Yaode Technology Co. Ltd. 229740245.47 -10611583.85

Wuhan Tianyuan Environmental

Protection Co. Ltd.

275577332.21 29076911.48

Konka E-display 14399858.75 -2625717.49

Chuzhou Konka Technology Industry

Development Co. Ltd.

17270427.37 -11371102.98

Chuzhou Kangjin Health Industrial

Development Co. Ltd.

14588741.64 662742.37

Haimen Kangjian Technology 29589201.10 -10544214.33

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Balance at the end of

last year at the

beginning of the year

Increase-decrease

Additional

investment

Reduced

investment

Gains and losses

recognized under

the equity method

Adjustment of

other

comprehensive

income

Industrial Park Operations and

Management Co. Ltd.Shenzhen Kangyue Enterprise Co.Ltd.

3691460.77 -343163.72

Dongguan Konka Investment Co. Ltd. 49004878.51 -6846600.88

Chongqing Konka Real Estate

Development Co. Ltd.

15780864.75 -2438.71

Chongqing Chengda Real Estate Co.

Ltd.

16500000.00 -2815247.76

Chuzhou Kangxin Health Industry

Development Co. Ltd.

14700000.00 4242.50

E3info (Hainan) Technology Co. Ltd. 28256240.41 8318369.32

Nanjing Kangxing Science and

Technology Industrial Park Operation

Management Co. Ltd.

23462938.10 23462938.10

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Balance at the end of

last year at the

beginning of the year

Increase-decrease

Additional

investment

Reduced

investment

Gains and losses

recognized under

the equity method

Adjustment of

other

comprehensive

income

Total 1739446470.06 147704921.77 34012803.29 -5700659.97

(Continued)

Investee

Increase/decrease

Ending balance

(carrying value)

Ending balance

of depreciation

reserve

Other equity

changes

Cash bonus or

profits

announced to

issue

Withdrawal of

impairment

provision

Other

Anhui Kaikai Shijie E-commerce Co.

Ltd.

17400738.44

Wanjun Technology (Kunshan) Co.Ltd.

121579584.17

Kunshan Kangsheng 175254554.65

Chutian Dragon Co. Ltd. 9240000.00 650206807.02

Helongjiang Longkang Zhijia

Technology Co. Ltd.

1100842.29 2470398.03

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Increase/decrease

Ending balance

(carrying value)

Ending balance

of depreciation

reserve

Other equity

changes

Cash bonus or

profits

announced to

issue

Withdrawal of

impairment

provision

Other

Shanghai Konka Technology Co. Ltd. 75261304.56

Shaanxi Silk Road Cloud Intelligent

Tech Co. Ltd.

17649295.81

Shenzhen Konka Information Network

Co. Ltd.

5158909.06

Shenzhen Zhongbin Konka

Technology Co. Ltd.

2214307.33

Shenzhen Konka Intelligent Electrical

Apparatus Co. Ltd.

3813134.28

Zhuhai Jinsu Plastic Co. Ltd.Shenzhen Bosser New Materials Co.Ltd.

13315913.09 58400000.00 18536771.07

Shenzhen Yaode Technology Co. Ltd. 219128661.62

Wuhan Tianyuan Environmental

Protection Co. Ltd.

304654243.69

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Increase/decrease

Ending balance

(carrying value)

Ending balance

of depreciation

reserve

Other equity

changes

Cash bonus or

profits

announced to

issue

Withdrawal of

impairment

provision

Other

Konka E-display 11774141.26

Chuzhou Konka Technology Industry

Development Co. Ltd.

5899324.39

Chuzhou Kangjin Health Industrial

Development Co. Ltd.

15251484.01

Haimen Kangjian Technology

Industrial Park Operations and

Management Co. Ltd.

19044986.77

Shenzhen Kangyue Enterprise Co.Ltd.

3348297.05

Dongguan Konka Investment Co. Ltd. 42158277.63

Chongqing Konka Real Estate

Development Co. Ltd.

15778426.04

Chongqing Chengda Real Estate Co.

Ltd.

13684752.24

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Investee

Increase/decrease

Ending balance

(carrying value)

Ending balance

of depreciation

reserve

Other equity

changes

Cash bonus or

profits

announced to

issue

Withdrawal of

impairment

provision

Other

Chuzhou Kangxin Health Industry

Development Co. Ltd.

14704242.50

E3info (Hainan) Technology Co. Ltd. 36574609.73

Nanjing Kangxing Science and

Technology Industrial Park Operation

Management Co. Ltd.Total 9240000.00 13315913.09 1824882015.48 26166078.16

Notes to the Financial Statements of Konka Group Co. Ltd.January 1 2020 to December 31 2020

(Unless otherwise specified the notes to this financial statement are all listed in RMB)

4. Operating Revenue and Cost of Sales

(1) Operating revenue and operating costs

Item

Reporting Period Same Period of last year

Operating revenue Cost of sales

Operating

revenue

Cost of sales

Main

operati

ons

3076325721.91

2769474547.4

5036032864.0

4960650274.9

Other

operati

ons

638561930.58 506745792.19 650069282.90 452981509.79

Total 3714887652.49

3276220339.6

5686102146.9

5413631784.7

(2)Information relating to the transaction price allocated to the remaining performance

obligation

At the end of this year the amount of income corresponding to the performance obligations

that have been signed but not yet fulfilled or not fulfilled is 12142638.84 yuan of which

12142638.84 yuan is expected to be recognized in 2021.

5. Investment Income

Item Reporting Period

Same Period of

last year

Long-term equity investment income accounted

by cost method

585217964.13 537735966.91

Long-term equity investment income accounted

by equity method

-5700659.97 5132712.27

Investment income from disposal of long-term

equity investment

1215083684.94 393939191.83

Investment income from holding of trading

financial assets

4800000.00 2330000.00

Investment income from disposal of trading 3405333.03 -10285883.02

Notes to the Financial Statements of Konka Group Co. Ltd.January 1 2020 to December 31 2020

(Unless otherwise specified the notes to this financial statement are all listed in RMB)

Item Reporting Period

Same Period of

last year

financial assets

Income from entrust financial products and

entrust loans

19038445.39 70346322.45

Total 1821844767.52 999198310.44

XVII. Approval of Financial Statements

The financial statement was approved on 22 March 2021 by the Board of Directors.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

XVIII. Supplementary Materials

1. Items and Amounts of Non-recurring Profit or Loss

Item Amount Note

Gain-Loss arising from disposal of non-current assets 2431648255.26

Tax rebates reductions or exemptions due to approval

beyond authority or the lack of official approval

documents

Government subsidies recognized in the current

period except for those acquired in the ordinary course

of business or granted at certain quotas or amounts

according to the government’s unified standards

908546202.24

Capital occupation charges on non-financial

enterprises that are recorded into current profit or loss

Gains due to that the investment costs for the Company

to obtain subsidiaries associates and joint ventures are

lower than the enjoyable fair value of the identifiable

net assets of the investees when making the

investments

Gain/Loss on non-monetary asset swap

Gain/Loss on entrusting others with investments or

asset management

18476648.12

Asset impairment provisions due to acts of God such as

natural disasters

Gain/Loss from debt restructuring 1127066.94

Expenses on business reorganization such as expenses

on staff arrangements integration etc.Gain/Loss on the part over the fair value due to

transactions with distinctly unfair prices

Current net profit or loss of subsidiaries acquired in

business combination under the same control from

period-beginning to combination date

Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Amount Note

Gain/Loss incurred from contingency unrelated to the

Company’s normal operating businesses.

Gain/loss from change of fair value of trading

financial assets and liabilities and derivative financial

assets and liabilities and investment gains from

disposal of trading financial assets and liabilities and

derivative financial assets and liabilities and

investment in other obligatory rights other than valid

hedging related to the Company’s common businesses

96316772.78

Reverse of bad debt provision of accounts receivable

individually conducting impairment test

Gain/loss on entrustment loans 64616181.90

Gain/loss on change in fair value of investment

property of which the subsequent measurement is

carried out adopting fair value method

Effect on current profit or loss when a one-off

adjustment is made to current profit or loss according

to requirements of taxation accounting and other

relevant laws and regulations

Custody fee income when entrusted with operation

Other non-operating income and expense other than the

above

54271037.60

Project confirmed with the definition of non-recurring

gains and losses

1081111.64

Subtotal 3576083276.48

Less: Income tax effects 544211364.67

Non-controlling interests effects (after tax) 186647854.72

Total 2845224057.09 —

（1） The explanation of the Company to “Project confirmed with the definition of non-recurringgains and losses” and define non-recurring gains and losses as recurring gains and losses according to the

nature and features of normal business operations of company.Notes to the Financial Statements of Konka Group Co. Ltd.

For the Year from 1 January 2020 to 31 December 2020 (all amounts in RMB yuan unless otherwise stated)

Item Amount Reason

Software tax refund 30710313.50

Government subsidies which

are closely related to the

normal business of the

company and which are in

accordance with national

policies and certain standard

quota or quantitative amount

Total 30710313.50